Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q4 2022 Earnings Presentation
20 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Feb 23, 2023
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 23 February 2023 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care Apx. 2 PERCENT OF THE SWEDISH POPULATION IS NOW A SHAREHOLDER IN THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE Sigtuna 2:227 – Pre-school
Slide 2: IPO of Sveafastigheter – Portfolio Overview
IPO of IPO OF SVEAFASTIGHETER – PORTFOLIO OVERVIEW 1 No. of apartments 5,000+ Portfolio clusters in densely populated areas with housing shortage Total equity value 2 No. of building rights 4,900+ (SBB’s share) 3 25% of Heba Fastighets AB SEK 15,718m1 SEK 4 Unique assets Largest Stockholm-focused re
Slide 3: Award-Winning Architecture with Cutting-Edge Technology
IPO of AWARD-WINNING ARCHITECTURE WITH CUTTING-EDGE TECHNOLOGY Winner Uppsala Architecture Award 2021 Nominated Construction of the Year 2022 Winner Kundkristallen 2021 Tryffeln, Uppsala Prisman, Nacka Hydran, Västerås Nominated Facade of the Year 2022 Winner of the Year's Sustainability Award 2018
Slide 4: DRIP Dividend to Be Proposed for Fiscal Year 2022
DRIP DIVIDEND (DIVIDEND REINVESTMENT PLAN) TO BE PROPOSED FOR FISCAL YEAR 2022 1 DRIP (Dividend Reinvestment Plan) alternative The Boards ambition is to propose a DRIP Dividend for fiscal year 2022 based on: • SEK 1.44 per Class A and B share Opportunity to be reinvested into new Class B shares • SE
Slide 5: The Group's Earnings Capacity Going Forward – Rolling Months
THE GROUP’S EARNINGS CAPACITY GOING FORWARD – ROLLING 12 MONTHS Current earnings capability for the Group – rolling 12 months SEKm Surplus ratio: 74% 8 000 6 728 7 000 2.79 6 000 1 000 95 SEK per ordinary Class A and B 2.11 Excluding rent increase 5 000 share SEK per ordinary Class A and B 1 717 200
Slide 6: Follow-up on Strategic Update from Q3
FOLLOW-UP ON STRATEGIC UPDATE FROM Q3 1 Disposals • Disposals of JV-assets of approx. SEK 2bn • Disposal of properties and 49% stake in SBB EduCo for over SEK 10bn 2 Diversified financing • Repurchase of bonds and hybrids of EUR 631 017 100 resulting in the reduced share of SBB’s capital market
Slide 7: Strategic Update Going Forward
STRATEGIC UPDATE GOING FORWARD 1 IPO of Sveafastigheter • The Board has decided to explore the conditions to carry out an IPO of Sveafastigheter during H1 2023 2 Continued disposal plan • Dialog regarding disposals of SEK 6bn is on-going to further strengthen the balance sheet 3 Focus on strategic p
Slide 8: Highlights for the Fourth Quarter 2022
HIGHLIGHTS FOR THE FOURTH QUARTER 2022 1 Ability to adapt 2 Focus on core business – Increased focus on community service infrastructure assets 3 Highest net operating income ever - high interest coverage ratio - strong increase in cash flow 4 78% of the gross debt has a fixed interest rate 5 We hav
Slide 9: Key Ratios for the Fourth Quarter 2022
KEY RATIOS FOR THE FOURTH QUARTER 2022 Key take away’s – Consolidated income statement Q4 2022 Q4 2021 Difference Rental income for the quarter 1,850m 1,695m +9,1% Net operating income 1,105m 1,082m +2,1% Cash flow from operating activities before changes in working capital 812m 713m +13,9% Profit f
Slide 10: Proforma LTV
PROFORMA LTV LTV Proforma SEKm 31 Dec 22 2023 Liabilities to credit institutions 33,896 33,896 Bond loans 52,078 52,078 Commercial papers 1,111 1,111 Total cash and cash equivalents and cash investments -4,850 -4,850 Adjusted for Agreed and committed cash from disposals after reporting date -10,500
Slide 11: Net Operating Income
NET OPERATING INCOME Period Quarter Full year 1 Jan 22 – 1 Jan 21 – SEKm Q4 2022 Q4 2021 2021 31 Dec 22 31 Dec 21 Rental income 7,447 5,930 1,850 1,695 5,930 Operating costs -1,567 -1,114 -451 -347 -1,114 Maintenance -393 -322 -134 -110 -322 Property administration -465 -317 -117 -122 -317 Property
Slide 12: Profit from Property Management
PROFIT FROM PROPERTY MANAGEMENT Period Quarter Full year 1 Jan 22 – 1 Jan 21 – SEKm Q4 2022 Q4 2021 2021 31 Dec 22 31 Dec 21 Net operating income 4,881 4,047 1,105 1,082 4,047 Central administration -433 -290 -113 -52 -290 Acquisition, restructuring and other costs -120 -86 -24 -46 -86 Profit from a
Slide 13: Profit Before Tax
PROFIT BEFORE TAX Period Quarter Full year 1 Jan 22 – 1 Jan 21 – SEKm Q4 2022 Q4 2021 2021 31 Dec 22 31 Dec 21 Profit from property management 2,391 3,286 656 1,220 3,286 Changes in value, property -4,571 21,360 -3,590 9,378 21,360 Realization result on distribution of Neobo -3,202 - -3,202 - - Diss
Slide 14: Debt Portfolio
DEBT PORTFOLIO Bond portfolio break down Cost of debt EUR bonds - maturity profile Weighted SEKbn 52.4 950 average 4.8 4.7 4.8 4.2 4.2 4.2 4.1 3.9 4.0 4.0 3.9 750 maturity 700 559 (years) 1.0 500 407 2.3 120 4,00% 50 5.6 94,966 95,626 95,376 3,50% 100 87,995 87,085 2024 2025 2026 2027 2028 2029 2040
Slide 15: To Summarize…
TO SUMMARIZE… 1 IPO of Sveafastigheter • SEK ~8bn in equity value attributable to SBB shareholders • IPO planned during H1 2023 2 Continued disposal plan • Dialog regarding disposals of SEK 6bn is on-going to further strengthen the balance sheet 3 Focus on strategic partnership with Brookfield • On-
Slide 16: Thank You!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) as
Slide 17: Appendix - SBB Overview and Key Highlights
APPENDIX - SBB OVERVIEW AND KEY HIGHLIGHTS Company snapshot Company snapshot Portfolio book value by country Major city regions ✓ SBB operates in the world’s safest real estate asset classes – community service properties in the Nordics where 100% of tenants are sovereign or public-financed tenants
Slide 18: Appendix - Rental Income Originates from AAA Assets
APPENDIX - RENTAL INCOME - ORIGINATES FROM “AAA” ASSETS Income overview by category – rolling 12 months Sovereign credit risk exposure in community service Sovereign credit rating Category Rental Income, SEKm % of Total Regulated rent residentials 1 512 22 Cash flows originating from the most Build
Slide 19: Appendix - Vision 2030 - Becoming Climate Positive in the Entire Value Chain
APPENDIX - VISION 2030 - BECOMING CLIMATE POSITIVE IN THE ENTIRE VALUE CHAIN Vision 2030 ✓ Climate positive in the entire value chain ✓ At least 90% social assets in the property portfolio ✓ Climate-adapted property portfolio that can cope with climate risks E Environmental targets S Social targets
Slide 20: Appendix - Recognition of ESG Performance
APPENDIX - RECOGNITION OF ESG PERFORMANCE ESG ratings Upgraded from BB to A 30% 20% 10% 0% CCC B BB BBB A AA AAA Risk reduced by 2.4 to 11.5, threshold for negligible ESG-Risk is 10.0 Peers (Market cap $7.6-$9.6bn) Exposure Management ESG-Risk Rating 40% 1. Samhällsbyggnadsbolaget i Norden AB 27.2 L
Samhällsbyggnadsbolaget i Norden AB (SBB) — Q4 2022 Earnings Presentation on 6ix