The fair value of Finnish Tornator forests is increasing and

Tornator Oyj – Market press release, November 23 at 9:00 a.m.

Fair value of Finnish Tornator forests rises to exceed two billion euros

The fair value (IFRS) of Tornator’s Finnish forests increases and will exceed two billion euros. The company owns an area of ​​approximately 643,000 hectares in Finland, with a balance sheet value of approximately € 1,671 million (biological assets) in the financial statements as at December 31, 2020, and approximately € 2,008 million after the updating of the valuation, ie around 3,120 euros per hectare. The fair value is determined by an external appraiser Indufor Oy.

Several factors influence the increase in the fair value of forests. When verifying the growth of the stands, the company adopted the MOTTI growth models developed by the Natural Resources Institute Finland based on the latest research results. New growth models show that the increase in the volume of tree stems has been faster than the previous estimate made 5 years ago. In addition, the successful acquisition of new forests increased future logging volumes and the increase in timber prices in the market had a positive effect on expected future cash flows.

Tornator Forests are a prime example of how sustainable forestry can increase positive impacts on the climate, promote biodiversity and improve the company’s ability to generate economic added value. In the words of the President of Finland: “Forests are a good investment in many ways”.

Tornator continues to use the discounted cash flow method to value its forests. The actual discount rate used to discount future cash flows remained unchanged at 3.25%.

The more detailed accounting principles for the fair value of the forest are described in the notes to the company’s financial statements for 2020 under the accounting principles for the consolidated financial statements and accounting policies that require management judgment.

The increase in the fair value of forests will significantly improve the 2021 result measured at fair value but will have no cash flow effect in 2021.

For more information please contact:

Henrik Nieminen, CEO, tel. +358 40 869 7613

Antti Siirtola, Chief Financial Officer, tel. +358 40 773 0975

Tornator is a leading company specializing in sustainable forestry in Europe. It has forests in Finland, Estonia and Romania. In 2020, the Group’s sales amounted to approximately 118 million euros and the balance sheet value was approximately 2.0 billion euros. The Group has around 180 employees. Tornator’s own employees, as well as other companies and their employees working on its forest lands, total approximately 1,000 person / years of employment. The owners of the parent company are Finnish, mainly institutional investors. Tornator’s mission is to generate sustainable well-being from forests.

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