Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B

Samhallsbyggnadsbolaget I Norden Ab Class B — Q3 2018 Earnings Presentation

14 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Oct 31, 2018

  1. Slide 1: Q3 Presentation October 2018

    Borlänge, Municipal House Q3 PRESENTATION October 2018

  2. Slide 2: Quarterly Highlights

    QUARTERLY HIGHLIGHTS 1 ▪ Net income after tax for the quarter of SEK 482 million. ▪ The work on consolidating the balance sheet with aim to improve our financial position intensified during the third quarter. We have repaid 2 approximately SEK 1.25 billion of our bonds, of which 1.2 billion maturing

  3. Slide 3: Financial Performance

    FINANCIAL PERFORMANCE 2018 2018 2017 Q3 Jan-Sep Jan-Dec Rental income, SEKm 427 1 227 1 339 Net operating income, SEKm 293 797 877 Surplus ratio, % 68 65 66 Interim profit, SEKm 482 999 2 429 Yield, % 4,8 4,8 4,8 Cash flow from current operations, SEKm ) 99 255 360 Property value (market value), SEK

  4. Slide 4: Company Overview

    COMPANY OVERVIEW Samhällsbyggnadsbolaget i Norden AB (SBB) in brief Property value per region: 65% in regions of big Nordic cities ▪ SBB was founded in March 2016 by Ilija Batljan who previously served as deputy CEO of Rikshem and has a long and successful background in the Oslo community services r

  5. Slide 5: Low-risk community service and residential properties complemented by development potential

    LOW-RISK COMMUNITY SERVICE AND RESIDENTIAL PROPERTIES COMPLEMENTED BY RESIDENTIAL DEVELOPMENT POTENTIAL Community services properties Residential properties Other / building rights development SEK 15.4bn SEK 7.5bn 9% SEK 2.2bn 61% 30% Includes schools, elderly care, LSS-housing and Mainly constitute

  6. Slide 6: Long term reliable partner for municipalities creates stable income

    LONG TERM RELIABLE PARTNER FOR MUNICIPALITIES CREATES STABLE INCOME Income overview1) ▪ Long history of actively working with several History of municipalities in Sweden Classification Rental Income, SEKm % of Total acquiring from municipalities ▪ First transaction completed only 6 months after Resi

  7. Slide 7: SBB's focus shifted from growth to value creation and consolidation

    SBB’S FOCUS SHIFTED FROM GROWTH TO VAULE CREATION AND CONSOLIDATION Further strengthening of key metrics through: Sole focus on consolidating the balance sheet Repaid SEK 1.2 billion in outstanding bonds maturing April 2020 Conditions Reduced SEK 89 million in financial costs on a 12- for month roll

  8. Slide 8: Underlying megatrends support continued growth

    UNDERLYING MEGATRENDS SUPPORT CONTINUED GROWTH Demographic change Sustainability and energy efficiency Urbanization |8

  9. Slide 9: Strong Net Operating Income

    STRONG NET OPERATING INCOME ▪ During the first nine months of the year: Net Operating Income of SEK 797 million, which adjusted for non-recurring items amounted to SEK 1 817 million, an increase of 29 percent from SEK 633 million during the corresponding period of the previous year. 2 ▪ Our strong n

  10. Slide 10: Earnings Capacity Property Portfolio as of September 2018

    EARNINGS CAPACITY PROPERTY PORTFOLIO AS OF 30 SEPTEMBER 2018 Current earnings capability for the Group for 12 months SEKm Surplus ratio: 70% 1 600 1 400 498 1 200 27 42 60 1 000 382 800 1 637 600 1 139 400 766 200 0 Rental income Property costs NOI Central Profit from JV Financial Financial Operatio

  11. Slide 11: Decreasing New Issue Spreads

    DECREASING NEW ISSUE SPREADS NEW ISSUE SPREADS HAVE DECREASED SIGNIFICANTLY FOR SBB Discount margin Bps 700 650 600 550 S&P BB rating affirmed 500 (Stable outlook) S&P announces BB rating 450 (Stable outlook) 400 360 BPS Maturity 10/03/2022 350 328 BPS Maturity 01/29/2021 300 Fitch announces BB 250

  12. Slide 12: Project development potential still selling

    PROJECT DEVELOPMENT POTENTIAL STILL SELING (13 000 SQM IN Q3) Current development portfolio (30 September 2018) Example projects Municipality Property Building right, sqm Västerhaninge (Haninge) Zoning plan process Development projects with formal planning process initiated Västerhaninge centrum, Ha

  13. Slide 13: In Summary

    IN SUMMARY 1 ▪ Sustainable and predictable cash flow remain the foundation of our activities. 2 ▪ Experienced development and transaction teams with strong track records. 3 ▪ Obtaining investment grade rating and lowering financing costs are continued focus areas. ▪ Significant potential from renova

  14. Slide 14: Thank you!

    THANK YOU! SBB Samhdllsbyggnadsbolaget @ :

Samhällsbyggnadsbolaget i Norden — Q3 2018 Earnings Presentation on 6ix