Castellum Ab · OMXSTO:CAST

Castellum Ab — Merger or Acquisition (April 2016)

16 slides from Castellum Ab's merger presentation, Apr 13, 2016

  1. Slide 1: Acquisition of Norrporten AB

    Acquisition of Norrporten AB April 2016

  2. Slide 2: Disclaimer

    Disclaimer THE INFORMATION CONTAINED IN THIS PRESENTATION IS CONFIDENTIAL AND MAY CONSTITUTE INSIDER INFORMATION AS DEFINED IN THE SWEDISH FINANCIAL INSTRUMENTS TRADING (MARKET ABUSE PENALTIES) ACT (IN SWEDISH: LAGEN (2005:377) OM STRAFF FÖR MARKNADSMISSBRUK VID HANDEL MED FINANSIELLA INSTRUMENT). A

  3. Slide 3: Introduction

    Introduction  Castellum to acquire Norrporten AB from AP2 and AP6 – Strong strategic rationale – Property portfolio to increase by ~60%, to SEK ~71bn – Income from property management to increase by SEK ~1,060m  AP2 and AP6 become long term shareholders in Castellum  Price payable at closing of 1

  4. Slide 4: Norrporten at a glance – Office pure play

    Norrporten at a glance – Office pure play Office property company Focus on urban growth centres Strong market position % of property value 1.1 Focus on offices in urban SEK 25.8 Million sqm lettable area Property value growth centres Luleå 8% Portfolio of high quality office 123 SEK 13.5bn Propertie

  5. Slide 5: Fundamentally supportive for Castellum’s strategy

    Fundamentally supportive for Castellum’s strategy High density in central locations within high growth areas Lower risk due to diversification of tenants, sectors and broadening of customer offering Office pure play – drives quality of property portfolio Strengthened offering to broadened customer b

  6. Slide 6: Strengthening of property portfolio

    Strengthening of property portfolio Castellum Norrporten Combined (31 March 2015) (31 Dec 2015) Industry/ware house Industry/ 0% warehouse Industry/ 18% warehouse 29% Property value by property Office/retail 100% category Office/ retail 71% Office/ retail 82% Eastern Eastern Eastern Götaland Götalan

  7. Slide 7: Strong position in attractive growth areas

    Strong position in attractive growth areas Property Index – Sweden’s top 24 fastest growing municipalities Population and income growth Growth Population growth Average income Municipality University Airport Comment ranking (2010-2015) 2014 (SEK’000)1 Stockholm 1 8.7% 323.6 √ √ Complement 2,0% Caste

  8. Slide 8: Improved quality of property portfolio

    Improved quality of property portfolio Complementary geographic Well-invested, high quality Attractive micro-locations presence properties Combined property value by Stockholm case study Example of Norrporten’s well-invested portfolio property category and geography: Industry/ warehouse 18% Luleå Of

  9. Slide 9: Strategic direction

    Strategic direction  High density in central locations within high growth areas The combined geographical footprint  Efficient management and strong costumer focus Castellum – Benefit from strengths of both organisations Norrporten  Strong combined development portfolio Overlapping Luleå  Overvi

  10. Slide 10: Financial aspects of acquisition

    Financial aspects of acquisition Purchase price vs. NAV Earnings accretion per share 14 500 20,0% 56% Increase in imcome from property mgmt per share 475 464 15,0% 54% 54% 54% 14 000 SEK million 451 Loan-to-value 8,0% 13 500 10,0% 52% 13 962 14,7% 13 000 13 500 5,0% 50% 13 440 50% 50% 5,9% 0,0% 0,9%

  11. Slide 11: Fully committed financing in place

    Fully committed financing in place 1. Secured bank debt of SEK 3.9 billion Uses: SEK Bn % – New and unutilized credit facilities 2. Directed issue to AP2 and AP6 of SEK 3.1 billion Cash purchase price 10.4 78% – 23.4 million shares issued at price of SEK 133 Directed share issue to Sellers 3.0 22% –

  12. Slide 12: Pro forma current earnings capacity and balance sheet

    Pro forma current earnings capacity and balance sheet Pro forma current earnings capacity Pro forma balance sheet Castellum Norrporten Adjust- Castellum Norrporten Adjust- Pro forma SEKm Apr-Mar Jan-Dec Pro forma Δ SEKm Δ ments 31 Mar 2016 31 Dec 2015 ments 31 Mar 2016 2016 2015 Rental income 3,493

  13. Slide 13: Summary

    Summary  Strong fit with Castellum’s strategy – 70% of portfolio is central locations in strong growth markets – Pure office play  improved portfolio quality – Stronger offering to broader customer base – Good organizational fit  Better positioned to reach 10% annual growth in income from propert

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: Attractive micro locations – Properties in CBD

    Attractive micro locations – Properties in CBD G R E A C T J O E Ö P R N 1.5 km E K N S 5 km Ö H T P A O I 5 km G C N E K G N H O Norrporten Norrporten Norrporten L M Castellum Castellum Castellum H E L Ö S R I E 1.5km N B G R B 1.5km O O R G Norrporten Norrporten Norrporten Castellum Castellum Cast

  16. Slide 16: Examples of Norrporten’s high quality property portfolio

    Examples of Norrporten’s high quality property portfolio Lejonet 11, Luleå Norr 15:7, Gävle Porten 1, Örerbo Magne 4, Umeå Klassföreståndaren 3, Stockholm Götaland 5, Jönköping Tingshuset 7, Östersund Läkaren 10, Stockholm Högkvarteret 2, Helsingborg Järnvägsstationen 2, Sundsvall Havneholmen 25, Co

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