Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — FY2020 Earnings Presentation
19 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Feb 23, 2021
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 23 February, 2021 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care Sigtuna 2:227 – Pre-school
Slide 2: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 1 Stable cash flow – Backed by AAA-countries Growth fueld by three value-add strategies – Property development, 2 renovations/investments and transactions Dividend – Proposed dividend of 1.00 SEK per A- and B class share (increase by 3 900% since 2017) 4
Slide 3: SBB Overview and Key Highlights
SBB OVERVIEW AND KEY HIGHLIGHTS 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 tenants are government-funded and highly regulated Swedish residenti
Slide 4: SBB Creates Value from "AAA" Assets
SBB CREATES VALUE FROM “AAA” ASSETS Sovereign credit risk exposure in community service Income overview Government and government- Sovereign credit rating Classification Rental Income, SEKm % of Total Regulated rent residentials 801 17 backed tenants Building rights for regulated rent residentials 6
Slide 5: SBB Pillars of Strategy
SBB PILLARS OF STRATEGY Key pillars to deliver attractive returns Portfolio has grown from SEK 23.0bn to SEK 90.2bn over 4 years… 90,2 79,5 GAV (SEKbn) 23,0 25,2 Unique and difficult to replicate SEK 90.2bn and fastest growing long-term relationships with low-risk Nordic social municipalities and ot
Slide 6: World-class team unlocking full potential to SBB's shareholders
WORLD-CLASS TEAM UNLOCKING FULL POTENTIAL TO SBB’S SHAREHOLDERS THROUGH THREE VALUE-ADD STRATEGIES BEYOND TRADITIONAL PROPERTY MANAGEMENT The Social Infrastructure Champion in Europe Committed to value-add strategies Property Property Real estate development renovations & sustainability transactions
Slide 7: SBB's Leading Business Model: Value-add Strategies
SBB’S LEADING BUSINESS MODEL: VALUE-ADD STRATEGIES Realising value of Strategic acquisitions Long-term value creation non-core/mature assets Maximising Value-add shareholder strategies value Real estate transactions Property development Property renovations & sustainability Real estate transactions
Slide 8: SBB's Value-add Strategies: Property Development
SBB’S VALUE-ADD STRATEGIES PROPERTY DEVELOPMENT The Social Infrastructure Champion in Europe Krister Karlsson Deputy CEO and Property Development Manager Industry experience 35 years Property Property Real estate renovations development transactions & sustainability Jenny Asmundsson Head of Public T
Slide 9: Property Development
PROPERTY DEVELOPMENT No. 1 property developer in the Nordic region Utilising building rights to create value throughout the value chain Top Nordic property developers by building rights on own balance sheet (no. of residential units, c. 70 sq.m. per apartment) Project portfolio Sell building rights
Slide 10: SBB's Value-add Strategies: Property Renovations & Sustainability
SBB’S VALUE-ADD STRATEGIES PROPERTY RENOVATIONS & SUSTAINABILITY The Social Infrastructure Champion in Europe Property Property Real estate renovations development transactions & sustainability Strong sustainability delivery ✓ 100% renewable electricity SEK +600m ✓ 95% total social impact of total r
Slide 11: Property Renovations & Sustainability
PROPERTY RENOVATIONS & SUSTAINABILITY Significant renovations upside potential with a clear ESG focus Significant avg. rental uplift after renovations in residential portfolio Average rent (SEK) per sq.m.: +SEK 421 after renovation ✓ Energy reduction from renovations average ~28% Stockholm prime,
Slide 12: Vision 2030, Sustainability Framework
VISION 2030, SUSTAINABILITY FRAMEWORK, ACCELERATING ENVIRONMENTAL INITIATIVES TOWARDS A MORE SUSTAINABLE WORLD Vision 2030 – to become the most sustainable property Sustainability SBB’s properties use only 100 percent renewable electricity, which is also what vision company by 2030 through sustainab
Slide 13: SBB's Value-add Strategies: Real Estate Transactions
SBB’S VALUE-ADD STRATEGIES REAL ESTATE TRANSACTIONS The Social Infrastructure Champion in Europe Property Property Real estate renovations development transactions & sustainability Oscar Lekander Carl Lundh Mortimer Business Development Project Development Manager Manager Industry experience Industr
Slide 14: Real Estate Transactions
REAL ESTATE TRANSACTIONS Clear M&A strategy in the world’s safest real estate class Significant transaction volume since inception Yearly transaction volume (SEKbn) Strategic acquisitions Structuring single SEK 72.2bn total acquisitions 2019–2020 assets into portfolios Divestments Acquisitions or st
Slide 15: Management: Value-add strategies in practice: Tellus 1
WORLD-CLASS TEAM UNLOCKING FULL POTENTIAL TO SBB’S SHAREHOLDERS THROUGH THREE VALUE-ADD STRATEGIES BEYOND TRADITIONAL PROPERTY MANAGEMENT The Social Infrastructure Champion in Europe Committed to value-add strategies Property Property Real estate development renovations & sustainability transactions
Slide 16: Strong Operating Profit Q4 – Rolling 12 Months
STRONG OPERATING PROFIT Q4 – ROLLING 12 MONTHS Current earnings capability for the Group for 12 months SEKm Surplus ratio: 72% 6 000 4 839 5 000 2.28 4 000 SEK per 152 98 ordinary Class A and B share 1 353 3 000 150 178 729 2 000 3 487 2 858 3 036 1 000 0 Rental income Property costs NOI Central Pro
Slide 17: BBB+ Rating Key Ratios Delivered
BBB+ RATING KEY RATIOS DELIVERED Interest-bearing liabilities 55 265 Comments 50% of hybrid bonds 7 240 Leasing liabilities 614 ◼ LTV, in accordance with S&P’s definition, amounted to Cash and cash equivalents -13 606 45.6 percent Other receivables (sold properties) SBB’s pro forma net debt, adjus
Slide 18: In Summary… SBB continues to deliver strong cash flow, profit and growth
IN SUMMARY… “Profit after tax per ordinary share of class A and B increased to SEK 6.41 (2.97)” ▪ Strong and stable cash flow backed by AAA-countries – more than SEK 50bn in contracted income without break clauses (9.2 years WAULT 1 on community service properties), fully CPI linked rent, strongest
Slide 19: Thank You!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — FY2020 Earnings Presentation on 6ix