PERFORMANCE AND RESULTS

2016

Highlights 2016

2

€165m

€45m

New investments and commitments

17%

€160m

Revenue growth of direct portfolio companies

Financial result

International capital into Finnishcompanies

VC & PE market

• Fund-raising as well as investment and exit volumes have

continued at a good level in Finland and internationally. In

the current environment of low interest rates, capital seeks

asset categories with higher risk and yield expectations,

such as venture capital and private equity.

• In 2016 Finnish companies raised a record-setting 17

venture capital rounds of over 5 million euros, compared to

just 5-10 rounds each year during 2012–2015. Finnish start-

ups received the most venture capital in Europe (per GDP).

• In later-stage growth funds exit activity in particular has

remained active.

3

Objectives and results 2016

1.3.2017 Performance and Results 2016 4

International capital

€159m from our network

to Finnish growthcompanies

OBJECTIVES RESULTS

We invest in the growthof Finnish companies

We develop the FinnishVC & PE market

Our operations areprofitable

Profit in 2016 €45m Cumulative profits €258m

2014 2015 2016

New investments €165m 10 funds and25 direct investments

47m€ 23m€

159m€ *

*includes some exceptionally large investment rounds

-26m€

86m€45m€

82m€ 93m€

165m€

International capital to Finnish companies

1.3.2017 Performance and Results 2016 5

Capital in Tesi’s direct investments (m€)• In 2016, 14 of Tesi’s direct investments raised a

total of 140 million euros from internationalinvestors. These companies include M-Files, Verto Analytics and Touhula.

• Tesi’s international portfolio funds invested a total of 28 million euros in eight Finnishcompanies.

• In addition to capital, international investorsbring valuable expertise and contact networks to portfolio companies.

Investment focus

1.3.2017 Performance and Results 2016 6

We operate on equal terms with private investors

Venture Capital funds

Later-stage Growth funds

Venture Capital

Direct investments

Growth Capital

Direct investments

Industrial Investments

Direct investments

Result

Net gains from investments€46M consist of realised and unrealisedchanges in fair value:

• In funds €28M; net gains were boosted by higher valuationsof Finnish VC funds and by exits.

• In direct investments €18M; net gains consisted mainly of a rise in valuations, fuelled by the good growth and improved profitability of portfolio companies.

• Cumulative profit was €258M at the end of the year.

1.3.2017 Performance and Results 2016 7

Consolidated statement of comprehensive income IFRS

EUR thousands 1-12/2016 1-12/2015

Net gains from venture capital and private equity funds 27 570 71 594

Net gains from direct investments 18 060 37 203

Net gains from investments, total 45 631 108 797

Net gains from financial securities 16 962 6 417

Income from fund management 447 467

Other operating income, total 17 409 6 884

Personnel expenses -4 737 -4 418

Depreciation and impairment -139 -148

Other operating expenses -2 981 -2 782

Operating profit / loss 55 184 108 333

Financial income and expenses 18 24

Profit / loss before taxes 55 202 108 357

Income taxes -10 601 -21 936

Profit / loss for financial year 44 601 86 421

Total comprehensive income (loss) for year 44 601 86 421

Balance sheet

Balance sheet value of funds €336M hasincreased by €10M

• Capital calls €62M

• Capital distributions from funds €80M

• Realised and unrealised changes in fairvalue recognised as a gain €28M.

Balance sheet value of direct investments€189M has increased by €55M

• Payments for investments €63M

• Exits €-6M

• Realised and unrealised changes in fairvalue recognised as a gain €18M

Current assets €410M consist mainly of liquid assets (financial securities).

1.3.2017 Performance and Results 2016 8

Consolidated Balance Sheet IFRS

EUR thousands 31.12.2016 31.12.2015 Change

Venture capital and private equity funds 335 736 326 099 9 636

Direct investments 189 415 133 665 55 750

Venture capital and private equity investments, total 525 151 459 765 65 386

Non-current assets total 532 909 472 312 60 597

Current assets, total 410 072 423 004 -12 932

Assets, total 942 981 895 316 47 665

Equity

Share capital 438 992 438 992 0

Share premium account 215 855 215 855 0

Retained earnings 213 037 126 615 86 421

Profit for financial year 44 601 86 421 -41 820

Equity, total 912 485 867 884 44 601

Liabilities

Non-current liabilities, total 27 849 22 769 5 081

Current liabilities, total 2 646 4 663 -2 017

Liabilities, total 30 495 27 432 3 064

Equity and liabilities, total 942 981 895 316 47 665

Cash flow

Cash inflow from investments during the year amounted to €105M and net cash flow was €-20M

1.3.2017 Performance and Results 2016 9

Cash flow 1-12/2016€M Out In Net

VC & PE funds 62 80 18

Direct investments 63 25 -38

Total 125 105 -20

1.3.2017 Performance and Results 2016 10

Examples of investments

10

INVESTMENTS TOTAL

10 FUNDS €102M

25 DIRECT €63M

Venture Capital funds Later-stage growth funds

Venture Capital Growth Capital Industrial Investments

1.3.2017 Performance and Results 2016 11

Valmet Automotive and new investor CATL form strategic partnership in electic vehiclesolutions

Visedo raised largest cleantech VC round in Finland

Creandum, Inventure et al. invested in KNL Networks

Wärtsilä acquires Eniram Finnish startups attract the most venturecapital in Europe (per GDP)

Vaadin raised two international financingrounds, investors e.g. eEquity and Verdane

Recent events

• In January, Tesi made two new commitment

decision to funds.

• In direct investments, the Chinese CATL

became a minority owner of Valmet

Automotive. The company also signed an

agreement to acquire Semcon’s automotive

design service business in Germany.

• Tesi’s portfolio company ThermiSol was sold

to the leading insulation producer in the

Nordics, Jackon Group.

12

Performance and Results 2016