SRV Yhtiöt (SRV1V) Investor update summary

Updated long-term financial targets and objectives

• Operational EBIT target of over €50 million and revenue target of over €900 million are now set for 2029-2030, postponed from the previous 2027 deadline due to prolonged weak market conditions.

• Dividend policy aims to distribute 30-50% of annual profit, considering outlook and capital needs.

Market overview and environment

• Construction recession comparable to the 1990s crisis, with housing starts well below long-term needs and nearly three years of low consumer and investor demand delaying strategic shifts.

• High levels of property sale and rental listings persist in major cities, but recent increases may signal positive market shifts.

• Urbanization continues to drive population growth in all major Finnish cities, supporting long-term demand for both residential and commercial construction.

• Contracting order backlog stands at EUR 930 million, with an additional EUR 1.1 billion in projects secured but not yet in backlog.

Strategic focus, portfolio management, and growth initiatives

• Strategy emphasizes portfolio shift toward self-developed projects, risk management, and profitable growth from business premises and residential construction.

• Targeting 30-40% of revenue from self-developed and self-initiated projects, and a similar share from residential construction.

• Project development pipeline has grown by about 50% in two years, now totaling around one million square meters.

• Recent sale of SRV Infra Oy has strengthened the balance sheet, supporting future land acquisitions and project financing.