SRV Partner of choice in construction projects

Investor Presentation 2016

March 2016 Juha Pekka Ojala, CEO Ilkka Pitkänen, CFO Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by SRV Group Plc (“SRV") for use as an investor presentation and does not constitute a recommendation regarding securities of SRV. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither SRV nor any of SRV`s advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this document, which neither SRV nor its advisors are under an obligation to update, revise or affirm. The distribution of this presentation in certain jurisdictions may be restricted by law. Persons into whose possession this presentation comes are required to inform themselves about and to observe any such restrictions. In particular, this presentation may not be distributed into the United States, Australia, Japan or Canada. The following information contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause SRV’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this presentation are based on information presently available to management and SRV assumes no obligation to update any forward-looking statements. This presentation constitutes neither an offer to sell nor a solicitation to buy any securities in the United States, Germany or any other jurisdiction. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. In particular, this presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of SRV in the United States. Securities of SRV may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. SRV does not intend to conduct a public offering or any placement of securities in the United States.

1 AGENDA 1. SRV at a glance 2. Market overview and positioning 3. Track record 4. Financial information 5. Future and outlook 6. Proposed new issuance 7. Appendix SRV in brief SRV at a glance

• Finnish construction company, founded in 1987 Selected key figures (MEUR) • Both builder and increasingly real estate developer (more capital intensive) Revenue 2015: 719.1 • Mostly family/founder-owned (53.1%) EBITDA 2015: 27.9 • Profitable ever since foundation EBIT 2015: 24.4 • Employs about 1,000 people • Established network of ca. 3,500 subcontractors & suppliers EBITDA margin 2015: 3.9% • Currently > 100 projects in the order book (5 in Russia), Record order Order backlog 2015: 1,583.4 book of almost EUR 1.6 billion Total equity 2015: 277.2 • Operates in the Metropolitan Area as well as in other attractive growth centres in Equity ratio* 2015: 42.5% • Has additional international operations in Russia and Estonia for almost Net debt 2015: 230.8 30 years Balance sheet total 2015: 762.6 • Benefits from megatrends such as urbanisation • Established in European debt and equity capital markets: Share price (24/2/2016): EUR 3.19 - EUR 75m senior unsecured bond issued in 2013 Market cap (24/2/2016): 188.1 - EUR 45m domestic hybrid bond issued in 2012 - Publicly listed (Nasdaq Helsinki; SRV1V FH) since 2007 *) Equity ratio = (total equity / (total assets – advances received)) x 100% • Substantial 1.6m m² landbank for future construction, a small (acquired) part of which, i.e. EUR 187.5m, is recorded on the balance

4 sheet Our business Three pillars of business operations

Operations in Finland International operations 91% of group revenue (2015) 9% of group revenue (2015)

Business premises Housing International (Russia and Estonia) 66%* 34%*

• Shopping centres and retail facilities • Housing for private customers • Shopping centre development and • Public and special facilities (e.g. • Housing for investors and construction as well as shopping centre hospitals and schools) other housing developers management in Moscow and St. • Offices, hotels and logistics facilities • Area development projects Petersburg • Currently no revenues from Estonia

* Share of revenue from operations in Finland in 2015

6 Diversification of operations by project type

Construction contracts Co-development projects Developer-contracting projects 68 projects (2015) 15 projects (2015) 50 projects (2015) EUR 353 m 2015 revenues EUR 129 m 2015 revenues EUR 237 m 2015 revenues

• Focus on selected projects with higher • SRV’s project development activities in • Project idea development and added value co-operation with partners implementation by SRV • Revenue recognition according to • SRV may participate also as an investor • Some developments with own equity percentage-of-completion method and owner contribution • Forward sale • Flexible exit to maximise returns

principal responsibility for the site; development and execution based on the SRV designs, builds and markets the construction is mainly subcontracted partner’s idea/specifications site Increasing degree of independence, risk-return profile and financing requirements Increasing margins starting from less than 8% to more than 20% - depending on project type

7 Highly competitive operating model

Customer network

Mega- LETTING AND MANAGEMENT* trends CONSTRUCTION Use of Customer DESIGN AND ENGINEERING property needs PROJECT DEVELOPMENT

Implementation partner network

• Strong know-how from project development to construction and owning the real estate • Highly efficient through emphasis on project management • Customer and service-oriented work culture • Light organisational structure enabling flexibility and scalability at low fixed cost • Broad partner network with experienced and well-established sub-contractors • Excellent references encouraging customers to execute the entire project with SRV

* To stabilize cash flows and operations in order to maximize exit price

8 Excellent position to seize future opportunities

Strong brand and Good financial track record Megatrends support the business excellent references and strong order backlog

Highly competitive Efficient, qualified and flexible Experienced key management team operating model organisation • Strong know-how Customer network • Highly efficient at project management Mega- • Customer and service-oriented work trends SRV Use of culture Approach property Customer • Light organisational structure needs Partner network • Broad partner network • Excellent references

9 Excellent references support strong brand

Helsinki University Main Library, Music Centre, Helsinki Kamppi Centre, Helsinki Helsinki

Torni hotel, Pearl Plaza, St. Petersburg Flamingo recreational centre,

… more references: see appendix or www.srv.com

10 Market overview and positioning Megatrends and implications

Favourable megatrends Implications for SRV

• Migration towards growth centres • While the overall construction market in Finland has been • Increasing need for complex construction projects lackluster, SRV operates in growth centres which have • Increasing number of PPPs* higher demand for construction • Ageing population and increasing number of single • Increasing demand for new kind of living, especially homes for the elderly Finland person households • Digitalisation and changes in working and shopping • Increasing demand for modern business premises habits • Rising energy prices and valuing of ecologically • Increasing competitiveness of new buildings sustainable life habits • More up-to-date renovations and alterations of old buildings

• Strong migration towards growth centres and new • Growing population increases new construction and the building construction demand for shopping centres • Modern shopping centres increasingly popular Russia • Demand for new innovative solutions • Entertainment services become integral part of shopping centres

* PPPs = Public Private Partnerships

12 Migration and urbanisation in Finland Net migration of municipalities Share of people living in cities in 2013 per mille in 2009-2013

Belgium Great Britain Netherlands Germany Denmark Sweden Spain France Norway Italy Motorway Finland Railway Switzerland Ireland 0% 20% 40% 60% 80% 100% Source: Technical Research Centre of Finland and Forecon

• At the end of 2013, 68.6% (up 7 percentage points) of Finnish people lived in urban areas, whereas in 1990 the figure was 61.9%, meaning 380,000 new inhabitants in less than 15 years Tampere Lahti • Significant potential for further movement (approx. 10 percentage points by 2035) Turku • Urbanisation and strong migration increase growth centres’ housing and business Helsinki premises construction Source: Statistics Finland, Timo Aro Growth centres coloured in blue

Source: Forecon

13 Housing demand in the Helsinki metropolitan area continues to grow Location of housing production, Demand for housing production, number urbanization scenario

Urbanisation scenario: continental Finland Urbanisation scenario: 14 biggest city areas Conservative scenario: continental Finland Conservative scenario: 14 biggest city areas

Population in the Cumulated housing Helsinki deficit, immigration metropolitan area and urbanization ї is predicted to housing demand in grow about 10-15 Helsinki vs. current % by 2040 housing stock +48 %

14 Source: Asuntotuotantotarve 2015-2040, VTT, 1/16 SRV has a key role as a developer of Metro Line

KIVENLAHDEN KALASATAMA ESPOONLAHTI TAPIOLA KEILANIEMI METROKESKUS NIITTYKUMPU REDI

15 SRV part of developing Ring Rail Line

KEIMOLANMÄKI MARTINLAAKSO AVIAPOLIS VANTAANKOSKI KIVISTÖ

Ilmala

MYYRMÄKI TIKKURILA

16 Order backlog and significant projects Order backlog almost doubled from last year

The largest projects of the year 2015 were REDI, TAYS, Niittykumpu Metro Center, Kalasatama Health and wellness centre

18 Most prestigious projects in Finland - Total construction REDI project Niittykumpu Metro Centre revenue > EUR - Total construction revenue 100m EUR 1.2bn by 2023 (current - Completion in contract EUR 390m) - SRV’s ownership 40% (of stages by end of total investment volume of year 2018 480 MEUR) - First residential tower – approximately 200 apartments reserved out of 283 during first month - Completion of the first residential tower in 2018

Tampere University Hospital Other current / future - New Children’s projects Hospital - Aalto University Campus building - Tampere Deck and Arena - Total construction - Jätkäsaari Wood City revenue 170 - Länsimetro Koivusaari MEUR - Fennovoima nuclear - Completion in power plant 2017-2019

19 Modern shopping centres in Russia LEED** Silver certificate RCSC*** - Total construction Pearl Plaza, St. Petersburg in October Award revenue EUR 123m 2014 in April - Long-term - SRV’s ownership 50% 2015 financing for all - Opened in August 2013 three projects - Near 100% utilisation secured - ~ 7m visitors in 2015 Golden Brick - Non-recourse - Targeted NOI* EUR Commercial financing 18m Real Estate through SPVs Award in June 2015

Okhta Mall, St. Petersburg Daily, Greater Moscow region

- Total construction - Total construction revenue EUR 140m revenue EUR 33m - SRV’s direct - SRV’s ownership 20% ownership 45% - Opens in autumn - Opens in summer 2016 2016 - Targeted NOI EUR - Targeted NOI* EUR 10m 30m

* Net operating income per year ** Leadership in Energy and Environmental Design *** Russian counsels of shopping centers – association of Russian developers, owners, consultants and retailers 20 Estimated realisation of shopping-centre projects

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Pearl Plaza 1 (50% stake) Okhta Mall (45% stake) Daily (20% stake) REDI shopping centre and parking facility (40% stake)

Construction and leasing Operation and stabilisation of leasing business ca. 2-4 years (release of equity capital through long-term follow-up financing with higher leverage) Exit stage (buyers are large international cash-flow focused investors)

• As of 6/2015, total invested capital in these four projects amounted to EUR 200.7m

21 Financial information Revenue grew – Order backlog almost doubled

The result of the end KEY FIGURES of year was improved by several completed 1-12 / developer contracted housing units and the 2015 higher profitability of Order backlog Revenue Operating profit projects 1 583.4 MEUR 719.1 MEUR 24.4 MEUR (+ 84 %) (+ 5.1 %) (- 1.9 %)

Equity ratio Earnings per share 42.5 % Result before taxes Gearing 83.3 % MEUR € 17.6 0.25 Dividend proposal (-5.1 %) (-16.3 %) REDI-project, 0.10 euro/ share Niittykumpu Metro Center, TAYS, TeHyKe – Q4 increases order backlog about 300 MEUR

23 Good result in Q4 2015

MEUR 2015 2014 change, % Q4 2015 Q4 2014 change, % Revenue 719.1 684.4 5.1 226.6 193.8 16.9 Operating profit 24.4 24.9 -1.9 17.0 9.6 77 Operating profit % 3.4 3.6 7.5 5.0 50 Return on equity, % 5.6 6.9 Return on investment, % 5.9 5.4

Equity ratio, % 42.5 43.0 Order backlog 1 583.4 860.4 84.0 Personnel Average 1 008 937 7.6

24 Key financials

EBITDA (EUR m) and EBITDA-margin (%) EBIT (EUR m) and EBIT-margin (%) Revenue (EUR m) 26.4 719 24.4 684 24.9 642 679 29.5 27.0 27,9 3.9% 3.6% 3.3% 4.3% 4.0% 11.4 3,5% 6.9 1.1% 2012 2013 2014 2015 1.8%

Finland International 2012 2013 2014 2015 2012 2013 2014 2015

EBITDA Margin EBIT Margin

• Group revenue in 2015 increased following the start-up of the REDI shopping centre and parking facility • Operating profit and EBITDA in 2015 on the same level, mainly due to a fall in revenue from developer-contracting housing production (see following slide) and growth of the proportion of low-margin business premises contracts • Several large-scale projects were launched in 2015 – corresponding rise in fixed costs reduced operating profit and margins • The order backlog rose to an all-time high level of EUR 1,583m (860m in 2014) mainly thanks to the start-up of REDI and several other large-scale projects

25 Recovery of SRV’s housing projects in 2015

At the moment, Developer-contracting SRV housing start-ups in Finland (units) SRV is the largest housing constructor in 1000 Low amount of the Helsinki area – housing start-ups nearly 1900 homes 883 900 during 2013-2014 is High amount of under construction now converting in housing startups in 802 800 low amount of 2015 will be visible 750 completed units in result and 700 revenue in 2016- 17 600 In 2016, 500 426 over two times more apartments will be 415 397 374 376 400 completed than in 2015 – 330 297 appr. 500 300 apartments 244 202 189 197 200 142 133 95 111 116 66 100 35 47 25 0 22 0 0 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Start-ups (units/LastTwelveMonths) Start-ups (units/quarter) 26 Key financial ratios

Net debt/EBITDA Interest Cover Ratio

8.2 • The successful September capital increase (net proceeds 23.6 EUR 48.5m) strengthened SRV’s financial position 16.7 4.2 4.1 2.8 7.3 7.6 5.9 8.3 6.2 • Housing loans are liabilities of the Housing Companies 5.2 (established for housing projects), which are non-recourse, but are consolidated on the SRV balance sheet 2012 2013 2014 2015 2012 2013 2014 2015 • Since these loans are non-recourse, and to make SRV‘s Net debt / EBITDA Interest Cover Ratio = EBITDA / Net Finance Charges Net debt / EBITDA (ex housing loans) leverage comparable, the Net debt/EBITDA ratio is also shown “ex housing loans“ • SRV is not only a construction company, but (through its own development projects) also (temporarily) acts as a real Equity ratio (%) Net Gearing Ratio (%) estate portfolio holder 35 36 43 43 126 97 91 83 • This real estate portfolio represents valuable assets, but also carries higher debt than a construction pure play 2012 2013 2014 2015 2012 2013 2014 2015

Equity ratio = (total equity / (total assets – advances received)) x 100%

27 Recent Developments until Q1 2016

• SRV’s Koivusaari metro station project wins Site of the Year 2015 award (02.12.2015) Financial Calendar 2016 • Agreements signed with the City of Helsinki on REDI shopping centre plots (16.12.2015) Financial Statement 2015: 18.02.2016 • SRV participates in planning a new life for Jätkäsaari´s Bunkkeri in Annual Report 2015: CW 8/ 2016 Helsinki (18.12.2015) Annual General Meeting: 22.03.2016 • SRV builds nearly 200 housing units for LocalTapiola and Elo Mutual Pension Insurance Company (21.12.2015) Interim Report Q1: 04.05.2016 • SRV participates in planning new Metro Centre and surrounding Interim Report Q2: 21.07.2016 residential blocks in Kivenlahti, (11.01.2016) • SRV participates in implementing Ring Road I project at Keilaniemi, Interim Report Q3: 03.11.2016 Espoo (13.01.2016) • Excellent demand for apartments at Kalasatama REDI’s first residential tower (13.01.2016) • SRV selected to develop EUR 500 million Tampere Central Deck SRV Group Plc does not comment the company's financial performance nor meet with capital market representatives during and Arena project (15.02.2016) the silent period preceding the publication of the financial statement • SRV to implement significant project for Aalto University release or interim reports. Properties in Otaniemi, Espoo (18.02.2016) • SRV´s EUR 45 million hybrid bond more than three times oversubscribed (09.03.2016) 28 Our future

Initiatives for long-term profitability targets

SRV’s goal is to improve its long-term profitability Targeted EBITDA margin: 8%

Key initiatives

Project mix Shopping centre projects Cost efficiency • Limited participation in low margin • Increased profit from associated • Sourcing savings with higher volumes tenders companies (when the shopping and wider competitive tendering • Increased focus on developer- centre projects are completed) • Tight capital and cost controlling contracting projects • Capital gains and release of • Fixed cost increase lower than top- • Better profitability from special, eliminated construction margin when line growth complicated projects a shopping centre is sold • Utilisation of shopping centre management functions

31 Outlook is improving

OUTLOOK FOR CONSTRUCTION • The total volume of construction in Finland is predicted to start increasing in 2016 • A slight rise is expected in housing construction start-ups • Rental apartments are being built and smaller apartments are selling in growth centres, but sales are more subdued in other areas • A slight decrease in business construction start-ups amount is forecast after the launch of large-scale projects last year • The future of Russia’s economy is still highly uncertain • Overall economic growth for 2016 is forecast at around zero, but the situation could worsen if the price of oil remains low or even continues to fall

SRV´S OUTLOOK FOR 2016 • Group revenue is expected to grow from the 2015 level and operating profit to improve on 2015 • Due to the completion schedule of developer contracting housing production a significant part of the operating profit is generated in latter half of the year • The financing costs will increase due to additional financing needed for increasing order backlog Proposed new issuance Indicative Senior Bond terms

Issuer: SRV Group Plc Status: Senior, unsecured, unsubordinated, ranking pari passu Use of Proceeds: Refinancing and General corporate purposes Rating: No rating Amount: EUR [75-100] million Tenor: [5] years Coupon: Fixed, paid annually in arrears • From 3 years to 4 years: @ 100% + 50% of the coupon Issuer’s call option: • After 4 years: @ 100% + 25% of the coupon • Put option @ 101% upon Change of Control Event Put option: • Put option @ 100% upon Demerger Event • Equity Ratio > 26% (maintenance) Financial covenants: • ICR ш 2x (incurrence) Covenants and other terms: Negative Pledge, Cross Acceleration, Disposals, Mergers Documentation: Stand-alone, based materially on the Confederations of Finnish Industries (EK) model terms Minimum Subscription: EUR 100,000 Amount of Book-entry Unit: EUR 1,000 Clearing: Euroclear Finland Infinity Listing and Law: Nasdaq OMX Helsinki, Finnish law Coordinator: Pohjola Markets Book-runners and Joint Lead Managers: Pohjola Markets and Danske Bank Co-Manager: Dero Bank

34 Thank you www.srv.fi http://annualreport2015.srv.fi/ Appendix Financials – consolidated income statement

EUR million 2015 2014 2013

Revenue 719.1 684.4 679.4 Other operating income 1.8 4.9 4.1 Change in inventories of finished good and work in progress 24.7 (54.6) 18.7 Use of materials and services (639.1) (533.2) (594.8) Employee benefit expenses (64.6) (63.2) (63.6) Share of profits of associated and joint venture companies (0.1) 1.0 (2.0) Other operating expenses (13.8) (12.5) (12.3) EBITDA 27.9 27.0 29.5 Depreciation and impairments (3.5) (2.0) (3.1) Operating profit (EBIT) 24.4 24.9 26.4 Financial income 5.0 2.8 1.8 Financial expenses (11.8) (9.2) (5.4) Financial income and expenses, total (6.8) (6.4) (3.6) Profit before taxes 17.6 18.5 22.8 Income taxes (3.6) (3.2) (4.5) Net profit for the financial year 14.0 15.4 18.3

37 Financials – balance sheet

EUR million 12/31/2015 % 12/31/2014 %

Non-current assets 271.9 35.6 160.8 27.9 Inventories 336.6 44.1 312.8 54.3 Other current assets 119.2 15.6 84.0 14.6 Cash and cash equivalents 35.0 4.6 18.4 3.2 Total assets 762.6 100.0% 576.1 100.0% Equity 277.2 36.3 225.2 39.1 Non-current interest bearing liabilities 163.2 21.4 147.0 25.5 Other non-current liabilities 8.6 1.1 8.1 1.4 Current interest bearing liabilities 102.6 13.5 77.6 13.5 - Housing loans (current and non-current) included above 58.9 7.7 45.6 8.0 Other current liabilities 207.0 27.1 118.2 20.5

- thereof advance payments related to construction contracts 104.1 13.7 49.2 8.5

Total equity and liabilities 762.6 100.0% 576.1 100.0%

Net debt as of December 31, 2015: EUR 230.8m (12/31/14: EUR 206.1m) Net debt as of December 31, 2015, excluding housing loans: : EUR 171.9m (12/31/14: EUR 160.5m)

38 Financials – indebtedness in detail

EUR million 12/31/2015 12/31/2014 12/31/2013

Non-current interest bearing liabilities Loans from financial institutions 29.5 26.6 42.7 Bonds 74.9 74.9 75.0 Housing corporation loans 58.9 45.6 61.4 Subtotal 163.2 147.0 179.1 Current interest bearing liabilities Loans from financial institutions 16.6 47.9 31.0 Commercial papers 86.0 29.5 95.5 Housing corporation loans 0.1 0.2 0.2 Subtotal 102.6 77.6 126.7 Total interest bearing liabilities 265.8 224.6 305.8 Cash and cash equivalents 35.0 18.4 90.0 Net debt 230.8 206.1 215.8 Total interest bearing liabilities (excl. housing loans) 206.8 178.8 244.2 Net debt (excl. housing loans) 171.9 160.5 154.2

39 Financials – consolidated cash flow statement

EUR million 2015 2014 2013

Net profit 14.0 15.4 18.3

12.0 10.7 18.6 Non-cash transaction / Financial income and expenses / Income taxes Depreciation and impairments 3.5 2.0 3.1 Change in working capital 40.2 34.7 69.1 Interest paid and received (14.7) (14.4) (10.7) Income tax paid (5.3) (1.5) (0.8) Operating cash flow 50.0 47.0 97.6 Cash flow from investing (118.5) (33.7) (44.7) Cash flow from financing 85.5 (84.8) 4.0 Net change in cash and cash equivalents 16.6 (71.5) 56.9 Cash and cash equivalents at the beginning of financial year 18.4 90.0 33.1 Cash and cash equivalents at the end of period 35.0 18.4 90.0

40 SRV project overview as of 31/12/2015

Order book (EUR m) Net sales Net sales Number of Order backlog as of 2015 2014 (EUR projects 12 2015 (EUR m) 1583 (EUR m) m) 77 Construction contracts, total 68 353 595 379 of which housing construction 15 49 71 57 554 of which business premises construction 53 304 523 322 1,1% Co-development projects, total 15 129 177 116 855 826 860 of which housing projects 12 81 61 100 53 137 180 of which business premises projects 3 48 117 16 363 273 Developer-contracting projects, total 50 237 811 190 253 of which finished housing projects (with unsold 28 93 40 67 450 apartments) 439 393 450 952 of which finished shopping centres 3 0 10 70* of which housing under construction 16 0 391 0.0 of which shopping centres, office buildings etc. under 2012 2013 2014 2015 3 144 371 54 construction** International Total 133 719 1583 684 Finland Housing of which Russia and Estonia 7 65 77 57 Finland Business Premises

* Net sales of Joint Ventures and associated companies are not included in SRV Group’s net sales ** Includes Joint Ventures and associated companies 41 Share price development YTD

HEX Indexed SRV Capital 3.4 increase (ex subscription 3.2 rights)

3.0

2.8

2.6

2.4

2.2

2.0 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.10. 2.11. 2.12. 2.1. 2.2.

42 Focusing of operations has yielded results

Pearl Plaza, x Footfall grew 18% and sales 25% compared with full year 2014 St. Petersburg opened 8/2013 x 99% of premises leased Okhta Mall, x Construction and leasing proceeding according to plan - Final lease agreements 33% and 22% of premises reserved St. Petersburg opening summer 2016 x SRV expects to invest a further c. EUR 6m in the project Developer-contracting Daily, Moscow x Construction proceeding, lease negotiations continuing shopping centre opening autumn 2016 x Final and preliminary lease agreements for 50% of premises projects x On 24 March, EUR 225m project credit agreement signed between the project company implementing the REDI shopping centre project and bank syndicate REDI, Helsinki x Construction launched in April opening H2/2018 x EUR 390m contract agreement signed with project companies x Final & preliminary lease agreements for the shopping centre premises about 20% of all lease agreements and when including agreements under negotiation, 70% of all agreements x New start-ups 442 (22). Sold 342 (63) units Developer-contracting Housing x Over 1,600 units under construction, of which 75% sold projects x Developer-contracted housing units completed 22 (100)

x 380 (818) co-development housing units under construction Co-development Rental housing in Finland x No co-development housing units sold to investors (347) projects Business premises x Contract signed with OP-Vuokratuotto on construction of Niittykumpu Metro Centre

Construction contracts Operations in Finland x Large-scale projects took the order backlog to a new record-breaking level

43 Key management

Juha Pekka Ojala • Member of the Board of Directors of East Office of Finnish Industries Oy since 2015 President and CEO • Member of the Board of Directors of the Confederation of Finnish Construction • Joined SRV in 1997 Industries RT since 2011 • ~20 years of industry • Senior Executive Vice President and Head of Business Operations in Finland of SRV experience Group Plc between 2010 and 2014, Executive Vice President, SRV Business Premises Ltd between 2002 and 2010 and in various other positions in SRV Viitoset Oy between 1997 and 2002

Ilkka Pitkänen • CFO of Fiskars Corporation between 2012 and 2014 CFO • CFO of DNA Ltd between 2010 and 2012 • Joined SRV in 2014 • Executive Vice President and CFO of Metsäliitto Cooperative between 2005 and 2010 • Vice President, Alliances and Acquisitions of Kone Corporation between 2003 and 2005 as well as in various other positions in Kone Corporation between 1998 and 2003

Ilpo Kokkila • Chairman of the Board of Directors of the Confederation of the Finnish Industries Founder and Chairman of between 2013 and 2014 the Board of Directors • A member of the Board of Directors of Kesko Corporation between 2006-2015 • Since 1987 • Chairman of the Supervisory Board of Pontos Capital AS since 2008 • Chairman of the Board of Directors of Kolpi Investments Oy, a member since 2006 • Chairman of the Board of Directors of Pontos Oy since 2001, as well as many other positions of trust

44 Significant events in SRV’s history

2007: 2014: 2015: 1990, 92-94: 2002: - Work on Park Inn SRV continued its Construction of Joint ventures 2012: Viru Hotel and Hotels began in St. expertise in hospitals: Finland’s largest in Russia and Issue of EUR 45m Viru Centre were Petersburg Construction of New urban construction Estonia domestic hybrid bond completed - St. Petersburg’s Children Hospital project REDI were initiated in Tallinn largest exhibition began began centre completed

1987 2015

2002: 2013: 1987: Construction of Shopping 2007: 2013: 2015: SRV Viitoset Oy Kamppi shopping centre Pearl Plaza IPO in Helsinki Issue of EUR 75 million Capital increase was established Centre began in in St. Petersburg Stock senior unsecured of approx. and SRV’s history Helsinki was successfully Exchange bond 2013/18 EUR 50m started to build up opened

45 Market fundamentals of Russia

Macro-economics Russian construction output (RUB bn) • Population: 143.7 million, 12.2 million in Moscow • 2014 GDP was worth USD 1,861 billion, accounting for 3% of 10 000 18.1% 18.2% 12.8% worldwide GDP; expected to decline by ca.4% in 2015 and to fall 5.0% 5.1% 2.5% 0.1% -13.2% -4.5% slightly (ca. 1%) in 2016 5 000 • Weakening rouble affects consumer purchasing power and retail demand 0 Shopping centres 2006 2007 2008 2009 2010 2011 2012 2013 2014 • With 17.7m m² Russia is now the biggest shopping centre market in Europe Value y-o-y change (real) • Retail spending in Russia is 60% of total consumer spending (almost twice as much as in Western Europe) Russian consumer spending (RUB bn) • Shopping centre density (m² per 1,000 inhabitants) still low at 124 8 000 m² (vs. 260 m² in Western Europe and 199 m² European average) • 709,000 m² of new shopping centre stock was added in H1/2015, 6 000 48% located in Moscow 4 000 • In Q2/2015 new shopping centre volume was down 25% year-on- 2 000 year • 1.5m m² of new shopping centre stock is expected in 2015 (>8% 0 growth)

Sources: The Economist Intelligence Unit, Trading Economics, Cushman & Wakefield, Jones Lang LaSalle

46 Benefits* from “developer-contracting” projects

Increasing value added profit Higher development degree and exit timing flexibility are key elements for value creation

timeline

Construction and letting Stabilising the rental business (2-4 Exit (2-3 years) years) • Construction revenue is recognised in • Optimising and stabilising rental • SRV’s operating model enables flexible accordance with income exit timing in order to maximize percentage-of-completion method • SRV’s profit share is recognised as capital gain • In case of partial ownership: SRV’s income from associated companies • In case of partial ownership: Earlier construction margin is deferred corresponding to SRV’s ownership deferred construction margin is stake recognized at exit

* Applicable for commercial developments only

47 Real estate market in Finland

• Finnish economy has been depressed since the Central-European investors in the Finnish real estate financial crisis in 2008 and so were the housing and • September 2014: PATRIZIA Immobilien AG opens new business premises construction markets location in Finland (“Finland is an attractive market for • However, 2015 was an exceptionally strong year for euro-oriented investors”) the Finnish real estate market*, especially driven by • March 2015: German Fund Uni Immo acquired an office international investors building in Helsinki • Transaction volume was up to EUR 5.2bn (2014: EUR • March 2015: Helaba is one of the mandated lead arrangers in 4.3bn) which was the third highest volume ever, and the REDI project bank syndicate (“It's a milestone transaction not far from the 2007 record of EUR 6.0bn for Helaba in a very interesting market environment in • Strong demand from international investors, including Finland”, Thomas Völker) German investors; foreign investors remain on the • July 2015: Veritas sells Sola Business Valley office building to same high level (2014: 35%) RREEF Investment GmbH • Analysts predict the transaction volume will also • August 2015: Deka Immobilien acquires health and wellbeing remain high in 2016 as interest rates remain low centre in Helsinki from SRV • Housing construction began to pick-up again in 2015 • August 2015: Deutsche AWM acquires real estate in Finland • Start-ups in business premises construction are • December 2015: Genesta sells Vilhonvuorenkato 11 to expected to grow this year Schroder Real Estate * Source: KTI Finland – The Finnish Property Market, 2015 CATELLA – Property Market Trends, Autumn 2015

48 Share of residential development projects has increased

Developer- contracted housing launches almost doubled from 2014 - 802 (330)

Housing sales successful – 76 % of almost 1 900 housing units sold, and the amount of unsold units nearly halved REDI’s excluded from 2015 figures

49 Projects selection Largest commercial premises projects under construction (estimated figures) Project, location Worth of SRV contract, Project type Completion sold/ for sale MEUR DEVELOPMENT PROJECTS REDI, Kalasatama, Hki 390 Commercial, housing, Q3/2018 Sold parking Health and Wellbeing Centre, Kalasatama, Hki * Public services Q4/2017 Sold Niittykumpu Commercial Center, Espoo * Commercial Q1/2017 Sold BUSINESS CONSTRUCTION Tays Etupiha, Tampere 171 Public services Q2/2019 Sold Tapiolan Center 2, Espoo 110 Commercial and Q2/2017 Sold housing New Children’s Hospital, Helsinki 90 Public Q2/2018 Sold Western Metro Line, Koivusaari station 40 Public Q4/2019 Sold HKScan poultry production facility, Rauma 38 Industry Q2/2017 Sold Renovation of Helsinki City Theatre 38 Public Q1/2017 Sold Aalto University Otaniemi campus and metro centre 101 ** OTHERS Sold

Ring Road I * Public H2/2018 Sold * The project's total value has not been disclosed ** Not yet included in the order backlog 3,500 homes in development pipeline – target to Largest housing projects under construction build 15,000- 20,000 homes (estimated figures) more in the next 10 years

Project, location Worth of SRV Apartments, Degree of Completion Sold/for contract, MEUR pieces readiness % sale DEVELOPER-CONTRACTING PROJECTS IN THE RS SYSTEM

Niittykumpu, Espoo 58 200 10 Q4/2017

Jätkäsaari, Hki 53 143 25 Q4/2016- Q2/2017 Lauttasaaren Kvartto, Helsinki 31 66 33 Q4/2016

Tapiolan Taitaja, Espoo 27 85 30 Q4/2016

Tikkurilan Carina, Vantaa 22 83 31 Q4/2016

HOUSING CONTRACTS

Espoon Suurpelto, Sato * 129 85 Q1/2016 Sold Espoon Niittykumpu, Sato & Varma * 218 20 Q2/2017 Sold Vantaan Tikkurila, LähiTapiola & Elo * 190 5 Q2/2017 Sold

* The project's total value has not been disclosed REDI proceeding well Reinforcement and concreting work of the foundation and the frame Excavation work is in is in its final stage – the progress, the shopping total amount of rock centre’s steel frame work and land removed and the excavation work from the site equals of parking facility are in the size of 9 x progress Parliament House

50 SRV employees Excavation work in and 350 its final stage, subcontractor foundation and employees working daily on structural works in the construction progress in site TeHyKe Excellent demand for apartments at Kalasatama REDI’s first tower

At pre-marketing Approximately 200 kick-off, over 150 of Majakka’s 283 apartments were apartments have reserved during been reserved, the first week actual sales to start in summer 2016

Majakka is ready by the Housing and end of 2018, services form a Shopping unique centre opens in 2018 combination Tampere’s Central Deck and Arena project

Group of companies Finland’s biggest created by SRV further multi-purpose arena – develops the project – over 1,000 negotiations with apartments, as well as interested financing restaurants and a partners continue hotel

The unique Final implementation realization in city decision is planned for center, directly on the summer - top of the railway potentially the start of track construction in the spring of 2017 Kivenlahti Metro Center, Espoo

The project strengthens SRV:s SRV is one of the position as a developer developers of new and builder of Helsinki Kivenlahti Metro Metropolitan Area Centre and transport nodes surrounding residential blocks

Four blocks: appr. Construction work 1,200 apartments, will start after land around 56,000 square use planning metres of commercial, procedures have office and service been completed, in premises as well as a 2017–2018 - ready bus terminal and a park in the early 2020s & ride facility Aalto University campus building

33,000 square metres in four levels: multi- functional education and work facilities and a daily consumer good store, speciality stores and restaurant premises

SRV builds a new campus building for Aalto University’s The project is to be School of Arts, Design launched in and Architecture, and February, and commercial premises completed in stages, in the Otaniemi Metro in April-June 2018 Centre Shopping Centre Pearl Plaza in St.Petersburg

LEED** RCSC*** Silver certificate - GBA 98,000 sqm2 and Award in October GLA 48,000 sqm2 in April 2014 - SRV’s ownership 50% 2015 - Opened in August 2013 - Occupancy rate 99.5% - In 2015 over 7.5 million visitors, 18% Golden Brick increase Commercial Real Estate Award in June 2015 Okhta Mall in St. Petersburg

Agreement of € 65 million credit signed with Sberbank

- GBA 144,000 sqm2, GLA 78,000 sqm2 - Total construction volume EUR 130m - SRV’s direct ownership Appr. 55 % of 45% the leasable - Opens in August 2016 area reserved or booked Daily shopping center in Mitishi

-Bank financing with Sberbank

- GBA 55,000 sqm2, GLA 25,000 sqm2 - Total construction Over 50 % of revenue EUR 33m the leasable - SRV’s ownership 20% area reserved - Construction completed or booked in November 2016 SRV Group Plc Derby Business Park, Tarvonsalmenkatu 15 FIN-02601 Espoo Finland

Telephone: +358 201 455 200 E-Mail: [email protected] https://www.srv.fi/en