INVESTOR DIALOGUE WITH AN INTERNATIONAL DIMENSION

SATO's investor meetings were attended by Finnish and international, mainly European, investors interested in our business operations. In our lively discussions, investors wanted to hear more about SATO's operating environment, strategy, capital structure and housing portfolio. A few examples of questions made by investors are presented below.

TRENDS

Please comment on the trends supporting demand for rented homes in Finland.

Urbanisation is expected to intensify in Finland and the portion of small households is as high as 80 per cent in Helsinki. Increasing immigration and internal migration are adding to the pressure to increase the number of rental apartments, particularly in the Helsinki Metropolitan Area. According to these trends the demand for rental homes, especially small ones, is likely to increase in the coming years.

FINANCING

Why is SATO looking for a higher credit rating, and what will it do to reach it?

By improving the current Moody’s Baa3 credit rating, we will secure the flexibility, high availability and competitive price of financing, also in the future. To improve the credit rating, we will continue to increase the proportion of unencumbered assets and to reduce the amount of loans in relation to the balance sheet total, and we will maintain a high interest margin ratio.