Corem Property Group Ab Class A · OMXSTO:CORE_A
Corem Property Group Ab Class A — Merger or Acquisition (May 2021)
32 slides from Corem Property Group Ab Class A's merger presentation, May 20, 2021
Slide 1: Creation of a leading Nordic commercial real estate company with focus on growth regions
Creation of a leading Nordic commercial real estate company with focus on growth regions Corem investor presentation, 20 May 2021 + 1
Slide 2: Important Information
IMPORTANT INFORMATION Acceptance of limitations: The information in this presentation (the “Material”) is furnished by Corem Property Group AB (publ), 556463-9440, (“Corem” or the “Company”) solely for the recipient’s information in connection with Corem’s public offering to purchase all shares in K
Slide 3: Today's Presenters and Agenda
TODAY’S PRESENTERS AGENDA Eva Landén CEO I. Introduction and overview of the Offer Joined Corem in 2008, CEO since 2012 Over 32 years of experience II. Corem + Klövern: Strategic rationale Anna-Karin Hag CFO III. Appendix Joined Corem in 2018 Over 20 years of experience 3
Slide 4: Creation of a leading Nordic commercial real estate company with focus on growth regions
Creation of a leading Nordic commercial real estate company with focus on growth regions 4
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Offer in brief Share offer Total value SEK 19,780m1 1 ordinary share of class A 0.88 ordinary shares of class A Premium based on closing prices 26 Mar 2021 1 ordinary share of 0.88 ordinary shares class B of class B Value ordinary shares of class A SEK 16.591 28.1% 1.12 ordinary
Slide 6: The Offer Represents an Attractive Valuation
THE OFFER REPRESENTS AN ATTRACTIVE VALUATION Overview of valuation of peers in relation to the Offer P/EPRA NAV 287% 231% +30% 169% 162% 133% 132% 121% 112% 112% 112% 110% 110% 94% 94% 92% 89% 87% 86% 85% 76% 73% 72% 65% Brinova Wihlborgs Diös Cibus SBB Fabege NP3 Kungsleden Pandox Corem Sagax Platz
Slide 7: Ordinary Shares of Class D: An Attractive Offer
ORDINARY SHARES OF CLASS D AN ATTRACTIVE OFFER WHICH WILL BENEFIT ALL SHAREHOLDERS • Introducing ordinary shares of class D to replace preference shares will benefit all share classes by improving the credit profile of the combined company and is a part of the journey towards an investment grade rat
Slide 8: Strong Shareholder Support for the Combination
STRONG SHAREHOLDER SUPPORT FOR THE COMBINATION Supported by Corem AGM decision Strong shareholder support in Klövern Issue of new shares as offer consideration approved 29.1% 40.6% Share of votes 15.4% The Board is authorized to execute share issue to Klövern’s Gårdarike AB 14.9% 59.4% sharehold
Slide 9: Indicative Timeline
INDICATIVE TIMELINE Date Event 12 May Offer document published 14 May Acceptance period started 11 June Acceptance period ends 14 June Final results from acceptance period published 17 June Share consideration is delivered 9
Slide 10: II. Corem + Klövern: Strategic rationale
II. Corem + Klövern: Strategic rationale 10
Slide 11: Creation of a Leading Nordic Commercial Real Estate Company
CREATION OF A LEADING NORDIC COMMERCIAL REAL ESTATE COMPANY WITH FOCUS ON GROWTH REGIONS 1 Creation of a leading Nordic commercial real estate company with focus on growth regions 2 Significant synergies and broadened customer offerings + 3 Strengthened financial profile that will enable an investme
Slide 12: Creating One of the Largest Commercial Real Estate Companies in the Nordics
1.1 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions CREATING ONE OF THE LARGEST COMMERCIAL REAL ESTATE COMPANIES IN THE NORDICS Market value of properties for selected commercial real estate companies SEKbn 96 1 77 75 1 60 59 52 48 47 46 43 42 40 31 25 23 21 15
Slide 13: Logical Portfolio Combination
1.2 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions LOGICAL PORTFOLIO COMBINATION – ENHANCED SCALE AND COMPLEMENTARY OPERATION FEATURES + Other Other Retail 4% Education, 12% 6% health care, Retail Retail other 11% 12% 15% Portfolio by segment Office 21% Office
Slide 14: Critical Mass in Swedish Growth Centres and Metropolitan Areas
1.3 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions CRITICAL MASS IN SWEDEN GROWTH CENTRES AND ATTRACTIVE METROPOLITAN AREAS Metropolitan areas Swedish growth centers Combined property portfolio in relation to growth Combined leasable area (sqm, thousands) 2.0%
Slide 15: Stronger Combined Offering to a High-Quality Tenant Base
1.4 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions STRONGER COMBINED OFFERING TO A HIGH-QUALITY TENANT BASE 670 22% 4.3yr 4,100 19% 3.5yr Number of tenants Top 10 tenant WAULT, total Number of tenants Top 10 tenant WAULT, total (Q4 2020) concentration portfolio
Slide 16: Solid Growth Potential from Combined Development Expertise
1.5 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions SOLID GROWTH POTENTIAL FROM COMBINED DEVELOPMENT EXPERTISE 1245 BROADWAY, 28&7 (322–326, 7TH AVE), ÖREBRO ENTRÈ – STAGE 1, VEDDESTA 2:79 SKRUVEN 3 BACKA 96:2, PRO STOP BACKA NEW YORK NEW YORK, (OLAUS PETRI 3:23
Slide 17: Continued Efforts Towards Increased Sustainability
1.6 2 3 4 5 Creation of a leading Nordic real estate company with focus on growth regions CONTINUED EFFORTS TOWARDS INCREASED SUSTAINABILITY Current sustainability focus ▪ Good business partner ▪ Health & commitment ▪ Attractive employer ▪ Long-term development of value areas and aligned ▪ Environme
Slide 18: Combination Creating Significant Synergies for All Shareholders
1 2 3 4 5 Significant synergies and broadened customer offering COMBINATION CREATING SIGNIFICANT SYNERGIES FOR ALL SHAREHOLDERS Run-rate X synergies1 (SEKm) ▪ Complementing knowledge and expertise and through wider product and customer offering Revenue ▪ Lower vacancy rate and a higher rate of exten
Slide 19: Strong Combined Financial Profile
1 2 3 4 5 Strengthened financial profile that will enable an investment grade rating STRONG COMBINED FINANCIAL PROFILE Q1 2021 2020 + + Income, SEKm 258 807 1,065 894 3,294 4,188 Result oriented Net operating income, SEKm 184 524 708 668 2,194 2,862 Surplus ratio, % 71% 65% 66% 75% 67% 68% IFPM, SEK
Slide 20: Clearer Ownership Structure and Corporate Governance
1 2 3 4 5 Clearer ownership structure and corporate governance CLEARER OWNERSHIP STRUCTURE AND CORPORATE GOVERNANCE Dependencies in BoD Shareholder structure of the combined company1 Cross-ownership (direct representation between ✓ ✓ and indirect) removed Corem and Klövern removed + Shareholders % V
Slide 21: Solid Potential for Increased Funding Access from Equity and Debt Markets
1 2 3 4 5 Improved capital market profile and access to capital SOLID POTENTIAL FOR INCREASED FUNDING ACCESS FROM BOTH EQUITY AND DEBT MARKETS Enhanced free float and shareholder liquidity Potential increase in equity research coverage Free float2 Current equity Average of top 5 research coverage Av
Slide 22: Creation of a Leading Nordic Commercial Real Estate Company
CREATION OF A LEADING NORDIC COMMERCIAL REAL ESTATE COMPANY WITH FOCUS ON GROWTH REGIONS 1 Creation of a leading Nordic commercial real estate company with focus on growth regions 2 Significant synergies and broadened customer offerings + 3 Strengthened financial profile that will enable an investme
Slide 23: Financial Targets
FINANCIAL TARGETS The combined company will have a high ambition regarding sustainability issues and be amongst the leaders in its segment The overall goal for the combined company is through long-term sustainable investments in geographical locations with high growth and strong cash flows provide h
Slide 24: corem | Pes”
corem | Pes” 24
Slide 25: III. Appendix
III. Appendix 25
Slide 26: Corem + Klövern: Summary of the Transaction (1/2)
COREM + KLÖVERN: SUMMARY OF THE TRANSACTION (1/2) ▪ On 29 March 2021, Corem Property Group AB (publ) ("Corem") announced a public offer to the shareholders of Klövern AB (publ) (“Klövern") to acquire all outstanding ordinary shares of class A, ordinary shares of class B and preference shares in Klöv
Slide 27: Corem + Klövern: Summary of the Transaction (2/2)
COREM + KLÖVERN: SUMMARY OF THE TRANSACTION (2/2) ▪ The proposed merger of Corem and Klövern, through the acquisition of Klövern by Corem, is expected to create significant value for all stakeholders Value ▪ Total financial, opex and revenue synergies with an estimated full annual run-rate of approx
Slide 28: Ordinary Shares of Class D: An Attractive Offer
ORDINARY SHARES OF CLASS D AN ATTRACTIVE OFFER WHICH WILL BENEFIT ALL SHAREHOLDERS Ordinary shares of class D alt. in public bid and terms in brief Exchange offer for Corem’s preference shareholders 1.12 ordinary 1.12 ordinary Attractive 1 preference Attractive 1 preference shares of shares of offer
Slide 29: Ordinary Share of Class D Overview
ORDINARY SHARE OF CLASS D OVERVIEW ▪ The combined company will have four classes of shares, ordinary shares of class A, ordinary shares of class B, ordinary shares of class D (after the AGM on 29 April) and preference shares. General ▪ Ordinary shares of class D rank pari passu with the ordinary sha
Slide 30: Record High Interest for Logistic Properties
RECORD HIGH INTEREST FOR LOGISTIC PROPERTIES Seven strong trends for logistic properties Accelerating momentum Swedish logistics real estate transaction volume, SEKbn 1. New customer needs require flexibility New-thinking with extensive 12% CAGR industry Continued high 33 34 experience interest and
Slide 31: The Swedish Office Market Set to Deliver Stronger Than Expected
THE SWEDISH OFFICE MARKET SET TO DELIVER STRONGER THAN EXPECTED Seven strong trends for office properties Accelerating momentum Swedish total real estate transaction volume, SEKbn 1. Residentials 1. Strong GDP outlook post COVID-19 Swedish 6% CAGR economy has 218 189 recovered well Continued high 15
Slide 32: Thank You!
THANK YOU! 32
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