Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Investor Presentation (September 2022)
21 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's investor presentation, September 2022
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE SEPT, 2022 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care Apx. 2.5 PERCENT OF THE SWEDISH POPULATION IS NOW A SHAREHOLDER IN THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE Sigtuna 2:227 – Pre-school
Slide 2: SBB Overview and Key Highlights – Unique Combination of Safe Assets
SBB OVERVIEW AND KEY HIGHLIGHTS – UNIQUE COMBINATION OF SAFE ASSETS 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
Slide 3: Overview of Property Portfolio
OVERVIEW OF PROPERTY PORTFOLIO Dynamics of SBB’s Property Portfolio WAULT, community service properties¹, yrs ▪ Credit worthy Majority Credit Worthy tenants,ofdirectly or indirectly tax financed income directly from Nordic states or 11 years 11 years 9 years Tenants local, government backed, munic
Slide 4: Demographic Mega Trends Driving Demand for SBB's Properties
DEMOGRAPHIC MEGA TRENDS DRIVING DEMAND FOR SBB’S PROPERTIES Key considerations Population growth across all the Nordics Population evolution Sweden Norway Finland Denmark ✓ Strong population growth expected in the 35 Nordic countries (c. 4.0m additional 30 inhabitants up to 2050), concentrated in th
Slide 5: Demographic Needs and Supply Shortage of Social Infrastructure Properties in Sweden
DEMOGRAPHIC NEEDS AND SUPPLY SHORTAGE OF SOCIAL INFRASTRUCTURE PROPERTIES IN SWEDEN Shortage General population growth Age group 10-19 yrs ✓560 new elderly care units until 2026 Age group 80+ yrs ✓74 new health care centers until 2026 +4.6% +10% ✓1,000 new schools and pre-schools until 2030 until 20
Slide 6: Value Creation Potential in Future Rent-Uplift
VALUE CREATION POTENTIAL IN FUTURE RENT-UPLIFT AND NOW REPLACEMENT COST IS INCREASING Large upside rent potential across all property sub categories RENT REGULATED RESIDENTIALS Rent levels (SEK/sq.m.) New Area construction SBB average Upside SEK/sq.m. Rent regulated 1,850 1,089 761 residentials 3 50
Slide 7: SBB Creates Value from "AAA" Assets
SBB CREATES VALUE FROM “AAA” ASSETS Income overview Sovereign credit risk exposure in community service Government and government- Sovereign credit rating Rental Income, Classification SEKm % of Total backed tenants Regulated rent residentials 2 395 33 Building rights for regulated rent residentials
Slide 8: SBB Long Term Partner to a Municipality in the Stockholm Region (Haninge)
SBB LONG TERM PARTNER TO A MUNICIPALITY IN THE STOCKHOLM REGION (HANINGE MUNICIPALITY) ✓ Long term collaboration with Haninge Municpality ✓ Owner of more than 100,000 sq.m. lettable area with the municipality as the main tenant ✓ Long-term partnership has led to: o Development of new school and elde
Slide 9: Strong Management Team and Board of Directors
STRONG MANAGEMENT TEAM AND BOARD OF DIRECTORS Active and hands-on management team with exceptional experience and track-record 23 years Management team’s average years of experience Ilija Batljan Oscar Lekander Krister Karlsson Eva-Lotta Stridh CEO and Founder Deputy CEO and COO Deputy CEO and Head
Slide 10: Property Management as the Foundation of SBB's Business Model
PROPERTY MANAGEMENT AS THE FOUNDATION OF SBB’S LEADING BUSINESS MODEL WITH A BEST-IN-CLASS ASSET MANAGEMENT TEAM Experienced asset management team Local market presence ✓ Local market presence in all of SBB’s investment markets ✓ In-house asset management and property management Country office ✓ Ext
Slide 11: Unique Low Risk Asset Class with Long Durations and High Propensity to Prolong Tenants
UNIQUE LOW RISK ASSET CLASS WITH LONG DURATIONS AND HIGH-PROPENSITY-TO-PROLONG TENANTS Structured process together with tenants Tenant turnover in community service properties1 ✓ Ongoing dialogue with community service tenants on a quarterly basis 100% Police and justice ✓ Discussions to prolong lea
Slide 12: Vision 2030 - Becoming Climate Positive in the Entire Value Chain
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 G Governanc
Slide 13: Recognition of ESG Performance
RECOGNITION OF ESG PERFORMANCE ESG ratings Upgraded from BB to A 30% 20% 10% 0% CCC B BB BBB A AA AAA Risk reduced to 10.7, threshold for negligible ESG-Risk is 10.0 40% 30% 20% 10% 0% Negligible (0-10) Low (10-20) Medium (20-30) High (30-40) Severe (40-50) Quality score 1 in Social Sustainability:
Slide 14: Refinancing Next 24 Months
REFINANCING NEXT 24 MONTHS – NO HYBRIDS, FULL COVER FOR BONDS, STRONG BANK RELATIONSHIP AND DIVERSIFIED FUNDING INCLUDING USPP Sum of Bonds 24 months SEKm 13 215 9 000 Available liquidity according to Q2 SEKm 17 200 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2022 Q4 2023 Q1 2023 Q2 2023 Q3 20
Slide 15: Strong Balance Sheet with Deleveraging in Focus
STRONG BALANCE SHEET WITH DELEVERAGING IN FOCUS Loan-to-Value Interest Coverage Ratio Financial Target Q2-2020 Q2-2021 Q2-2022 Financial Target Q2-2020 Q2-2021 Q2-2022 LTV LTV Target ICR ICR Target 5,2x 5,6x LTV 50% 3,5% 46% ICR >3.0x <50% 37% Q1-2020 Q2-2020 Q1-2021 Q2-2021 Q1-2022 Q2-2022 Q1-2020
Slide 16: Strong Balance Sheet with a Low Cost of Debt and Long-Dated Maturity Profile
STRONG BALANCE SHEET WITH A LOW COST OF DEBT AND LONG-DATED MATURITY PROFILE Latest Diverse debt and capital structure Long-dated maturity profile Developments Debt structure 6% 16% 27% 6% 7% 38% SBB has, on 13th July, successfully priced During the next 12 months we have bond maturities of SEK 3.7b
Slide 17: Selection of SBB's Largest Joint Ventures and Associated Companies
SELECTION OF SBB’S LARGEST JOINT VENTURES AND ASSOCIATED COMPANIES – LOW LTV AT JV LEVEL Svenska Myndighetsbyggnader AB Public Property Invest AS SBB Kåpan AB LTV 43 % SMB owns and manages properties for the judiciary, the PPI owns and manages properties for the judiciary and SBB Kåpan AB owns and m
Slide 18: The Group's Earnings Capacity Going Forward – Rolling 12 Months
THE GROUP’S EARNINGS CAPACITY GOING FORWARD – ROLLING 12 MONTHS Current earnings capability for the Group for 12 months SEKm Surplus ratio: 74% 8 000 7 291 7 000 3.53 1 166 100 SEK per ordinary Class A and B 6 000 share 73 5 000 1 894 200 1 402 4 000 3 000 5 397 5 061 5 134 2 000 1 000 0 Rental inco
Slide 19: How Much Cash Does the Shareholders Get? – The Power of CPI-Linked Income
HOW MUCH CASH DOES THE SHAREHOLDERS GET? – THE POWER OF CPI-LINKED INCOME 30 June 2022 Divestments after 30 June 2022 SEK 9.0bn portfolio 30 June 2022 Inflation Inflation assumptions SEKm Pro forma 2023 earnings capacity end of Q2 adjusted I under LOI adjusted II adjustment Country 2022 Weight Renta
Slide 20: Key Highlights in Summary Q2 2022
KEY HIGHLIGHTS IN SUMMARY Q2 2022 1 CPI-linked rental income - strong increase of rental income during the first half of the year, exceeds base inflation by 1.3 percent ▪ SBB has as an internal goal that our average annual increases of rental income in comparable holdings shall exceed CPI with 100 b
Slide 21: Thank You!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — Investor Presentation (September 2022) on 6ix