Bonava Ab Class A · OMXSTO:BONAV_A
Bonava Ab Class A — Investor Presentation (February 2024)
27 slides from Bonava Ab Class A's investor presentation, Feb 8, 2024
Slide 1: Bonava Company presentation February 2024
Advertisement Bonava Company presentation February 2024
Slide 2: Disclaimer
Disclaimer 8 IMPORTANT INFORMATION NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, THE UNITED STATES OR ANY OTHER COUNTRY OR JURISDICTION TO WHICH SUCH RELEASE, PUBLICATIO
Slide 3: Key investment highlights
Key investment highlights Sustainable homes in Europe with a ll-established position in several geographies Favourable long-term market fundamentals N business plan to secu returns in prioritised geographies Strong position to outperform the market Further strengthening of the capital structu ‘ith n
Slide 4: Residential development of sustainable homes in Europe with a well-established position
Residential development of sustainable homes in Europe with a well- 8 established position in several geographies BONAVA IN BRIEF KEY KPIS AND MARKET PRESENCE Bonava is a residential developer in Germany, Sweden, Finland and the Baltics Bonava creates homes for the many by developing land into attra
Slide 5: From captive business unit to independent developer
From captive business unit to independent developer 8 Reported Net Sales LTM (SEKbn) 18 16 14 12 10 Divested Business Units | Current Business Units 8 6 4 2 ° 1494 ‘15 Q4 ‘16. Q4 1794 '18.Q4 '19Q4 "2094 "2194 '22Q4 '23.Q4 STREAMLINE OPERATIONS AND FOCUS BUSINESS UNIT OF NCC 2009- _ SPIN-OFF - INDEPE
Slide 6: Sustainability deeply embedded in our business
Sustainability deeply embedded in our business 8 We will perform lifecycle assessments (LCA) in all completed projects during 2024. This will enable us to develop our emission reduction pathway according to our Science Based Targets (50% reduction to 2030) Bonava delivered its first two EU taxonomy
Slide 7: Residential construction market is driven by favourable long-term fundamentals
Residential construction market is driven by favourable long-term fundamentals GERMANY SWEDEN # of units 400,000 1735 Cumulative market Completed units per undersupply annum by Bonava ('18'22 avg.) BALTICS Bonava is well positioned to capitalise on the undersupply in the market Bonava's presence cov
Slide 8: Targeted market levels present significant upside compared to current levels
Targeted market levels present significant upside - compared to current levels 190@3 45 DIFFERENCES IN RESIDENTIAL CONSTRUCTION OUTPUT ARE SHAPED BY MACRO AND COUNTRY-SPECIFIC STRUCTURAL FACTORS GERMANY e SWEDEN e FINLAND ifr # of building permits (LTM) # of housing starts (LTM) # of housing starts
Slide 9: Segment development over time prove solid foundation for future growth
Segment development over time prove solid foundation for future growth 8 129045) ° NET SALES (SEKM) STARTED UNITS (#) RETURN ON CAPITAL EMPLOYED? (%) 8.000 3.000 2s 7.000 a s00 20 6.000 1s 2.000 5.000 10 4.000 1.500 5 3.000 1.000 2.000 [ay “7 XT 500 1.000 Ea ; an 2016 ©. 2017-«S««:2018« «2019-2020 2
Slide 10: PUBLIC
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Slide 11: Bonava is proactively acting on changing market conditions
Bonava is proactively acting on changing market conditions and sharing 8 learnings between its markets 20-0E STAKEHOLDERS POTENTIAL ACTIONS TAKEN BY STAKEHOLDERS POTENTIAL RESPONSES BY BONAVA * Flexible products that can be adjusted to meet = Changed requirements in terms of energy, changing require
Slide 12: Bonava as a group can perform strong returns at optimised volumes
Bonava as a group can perform strong returns at optimised volumes 8 GP Serys) ATTRACTIVE LAND BANK VALUED AT HISTORICALLY LOW LEVELS OPTIMISED VOLUMES 3,500-4,000 TO LEVERAGE ON CURRENT ORGANISATION . # of building starts . . Gross area light* Production equal to Number of units SEK/GAL - on bala! 3
Slide 13: Deep dive strategy Germany
Deep dive strategy Germany - Strong market position and robust 8 performance over time COMPETITIVE POSITION LAND BANK OVERVIEW? Highest brand awareness" Presence in the right regions Land bank split - Land bank split- 2022 Geographic ‘Types of homes Active in regions with Ml Hamburg Multifamily B2C
Slide 14: Deep dive strategy Sweden
Deep dive strategy Sweden - Focus on high margin regions and products 8 GP Serys) AVERAGE PROJECT MARGINS! (2017-2022) LAND BANK OVERVIEW? ‘Types of homes ‘Stockholm Land bank split - Land bank split- ———— Geographic ‘Types of homes ’ \ 1 25% ' I Mutttamity BC ! 1 Mutstamiy 828 IB Stockholm A Book v
Slide 15: Deep dive strategy Baltics
Deep dive strategy Baltics - Rising market position and high growth 8 potential COMPETITIVE POSITION LAND BANK OVERVIEW! Highest new apartment sales volumes in Latvia and public recognition as Developer of the Year 2022 in Latvia Land bank split - Land bank split- EURm, 2022 Geographic Types of home
Slide 16: Deep dive strategy Finland
Deep dive strategy Finland - Current setup enable selective approach at 8 low risk Te LOW CAPITAL EMPLOYED YIELDING HIGH OPERATING PROFITS LAND BANK OVERVIEW2 Capital employed ‘Operating profit? Land bank split - Land bank split- Geographic Types of homes rormonuens 12,422 660 miei sien 22 Ml Tamper
Slide 17: Production and developer cost still significantly below market selling price
Production and developer cost still significantly below market selling price - Good profitability possible with right land cost Examples of ongoing or soon to be started projects PROJECT 1: SINGLE FAMILY HOMES - STOCKHOLM. eo PROJECT 2: MULTIFAMILY HOMES - UMEA (12) Price per GAL, SEKK/sqm Ml Market
Slide 18: Bonava is positioned to outperform the market from a significantly lower base
Bonava is positioned to outperform the market from a significantly lower 8 base due to proactive ramp-down We) GERMANY HOUSING STARTS. = SWEDEN HOUSING STARTS. ® FINLAND HOUSING STARTS { Housing starts, # of dwellings Housing starts, # of dwellings Housing starts, # of dwellings Ooooodod O2eoqooeod
Slide 19: More flexible and decentralised organisation
More flexible and decentralised organisation with investment decisions at top level but with local project management and execution PREVIOUS ORGANISATION (1213, 9@ 5) NEW ORGANISATION Central Local Investment process Decision on way of working (customer segment, type of production contract, building
Slide 20: Experienced management team
Experienced management team 8 (imc nd VA 1233905 PETER WALLIN LARS INGMAN SABINE HELTERHOFF MICHAEL BJORKLUND _RIKU PATOKOSKI ANNA WENNER HEDVIG WALLANDER President and CEO Interim CFO BU President Germany BU President Sweden BU President Finland SVP Brand and Culture Head of Legal Since Feb 2021 Si
Slide 21: Bonava has a strong position to outperform the market
Bonava has a strong position to outperform the market 12.3905 * Operating in highly populated and high-growth regions Exposure to high- growth r * Structural shortage of housing based on undersupply and a need for modernisation of existing housing stock * Diversified land bank valued at historically
Slide 22: Updated financial targets
Updated financial targets Bonava shall obtain an operating margin of at least 10 per cent by 2026 Bonava shall maintain a return on equity of at least 15 per cent over time Bonava shall distribute 40 per cent of net profit over time? Note: 1) Dividends are not permitted for the duration of the new c
Slide 23: Steps towards improving operating margin
Steps towards improving operating margin 8 HOW TO REACH +10% OPERATING MARGIN ~~ ----------------------------------- +10% Actions already taken Market recovery Higher volumes f 1 f 1 f . Mix \ GhEES + Higher volumes expected to : have a positive effect on 1 ‘operating margin due to : Less unallocate
Slide 24: New financing package providing necessary operational and financial flexibility
New financing package providing the company with necessary operational 8 and financial flexibility THE TRANSACTION CONSISTS OF THREE PARTS STAKEHOLDERS: ' KEY TERMS + Equity issue of approx. SEK 1,020 + Extension ofthe credit facies to + Extension of maturity of SEK 1,200m million through a rights i
Slide 25: Rights issue - Indicative terms and timetable
Rights issue - Indicative terms and timetable 8 KEY TERMS. TIMETABLE undertakings and Extraordinary General Meeting 7 February 2024 Anyone who is registered as a shareholder of Bonava on the record date will receive one (1) subscription right for each held Class A share and Class B share, respective
Slide 26: Bonava
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Slide 27: Detailed overview of Bonava's building rights portfolio
Detailed overview of Bonava’s building rights portfolio (per Q3 2023) 8 On balance Option agreement Book value Expected purchase price Expected purchase price Number of units! GAL? (k sqm) SEKm —_ SEK/sqm Number of units! GAL? (ksqm) SEKm —__SEK/sqm Number ofunits! GAL? (k sqm) SEKm —__SEK/sqm Germa