Company release, insider information, 16th December 2024 at 12:30 p.m.

Toivo Group Oyj has made an investment in E-Heat Oy. The investment, valued at approximately 2 million euros, grants Toivo a significant minority stake in E-Heat Oy. Through this investment, Toivo is expanding its operations from property development and ownership into the energy business. The investment supports the company’s long-term goal of promoting sustainable development.

E-Heat Oy is a Finnish energy company specializing in energy-efficient solutions, particularly the utilization of waste heat from data centers. The company aims to advance low-emission energy production and provide energy-efficient solutions for residential buildings, industrial properties, and district heating networks.

Toivo Group and E-Heat Oy share a similar operational model: both companies develop and own sustainable solutions. Toivo focuses on property development and housing, while E-Heat Oy operates in energy production and circular economy solutions. The collaboration brings synergies, particularly in enhancing the energy efficiency of Toivo’s property developments and housing projects.

E-Heat Oy's operations have already achieved significant results in reducing emissions. By the end of 2024, its solutions are estimated to have reduced carbon dioxide emissions by over one million kilograms, equivalent to the total annual emissions of approximately 500 homes.

"The investment in E-Heat Oy is a step forward in Toivo's journey toward achieving its sustainability goals. This entry into the energy business complements our strategy of developing and owning environmentally friendly properties. Collaboration with E-Heat enables us to offset the carbon emissions of housing more effectively and provides tangible benefits for both our current and future residents. Together, we can build a more sustainable future in housing and energy use," says Markus Myllymäki, CEO of Toivo Group, expressing his excitement about the deal.

"We at E-Heat look forward to a shared journey with Toivo Group Oyj toward a lower-emission Finland. Most of the heat in our country is produced through combustion, which makes it crucial to find new, cleaner ways of generating heat. Utilizing waste heat reduces emissions and also lowers heating production costs. With the additional resources from Toivo Group Oyj, we can further realize our vision of reducing emissions in heat production," says Lauri Pispa, CEO of E-Heat Oy, regarding the deal.

Toivo Group will hold its financial statement release event for 2024 on February 26, 2025, where it will provide more details about the investment in E-Heat and its outlook for the energy business.

The transaction is not expected to have a significant impact on the company's operating profit forecast for 2024.

Toivo Group Plc

Board of Directors

Further information

Markus Myllymäki

CEO

Toivo Group Plc

Tel. +358 (0)40 847 6206

markus.myllymaki@toivo.fi

Certified Adviser: Nordic Certified Adviser.

About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business consists of project development and long-term ownership of apartments. The Company’s business model is unique as Toivo’s business combines the value chain of real estate business from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of properties with its own team, from raw land development to tenancy agreement negotiations and property maintenance. This way Toivo is able to generate additional value to its customers, shareholders and stakeholders.

Toivo’s strategy is to develop properties in accordance with the Toivo concept. The properties aim for a strong development margin and a stable and attractive return, and in this way enable long-term ownership and the generation of higher additional value to Toivo’s customers. Toivo has a knowledgeable and experienced team of experts with strong merits in the real estate business. The members of Toivo’s team have been involved in the development and construction of over 17,000 apartments, and they have an average of ten years of experience in the real estate business.

Toivo’s revenue in 2023 was EUR 43,7 million and its operating profit was EUR -0,3 million.