Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q4 2018 Earnings Presentation
13 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, February 2019
Slide 1: Q4 Presentation
Lasarettet 8, Karlshman Q4 PRESENTATION February 2019
Slide 2: Quarterly Highlights
QUARTERLY HIGHLIGHTS ▪ Net income after tax for the quarter of SEK 691 million corresponding to SEK 0.83 (0.48) per A- and B ordinary shares despite large non- 1 recurring costs mainly related to refinancing. ▪ The Revenues grew by 3.2 percent (like for like) and in our major renovation projects sig
Slide 3: Financial Performance
FINANCIAL PERFORMANCE 2018 2018 2017 Q4 Jan-Dec Jan-Dec Rental income, SEKm 453 1 680 1 339 Net operating income, SEKm 274 1 071 877 Surplus ratio, % 60 64 66 Interim profit, SEKm 691 1 690 2 429 Yield, % 4,7 4,7 4,8 Cash flow from current operations, SEKm -7 248 360 Property value (market value), S
Slide 4: Company Overview
COMPANY OVERVIEW Samhällsbyggnadsbolaget i Norden AB (SBB) in brief Property value per region: 68% 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 community Oslo services r
Slide 5: Low-risk community service and residential properties complemented by residential development potential
LOW-RISK COMMUNITY SERVICE AND RESIDENTIAL PROPERTIES COMPLEMENTED BY RESIDENTIAL DEVELOPMENT POTENTIAL Community services properties Residential properties Other / building rights development SEK 16.4bn SEK 6.7bn 8% SEK 2.1bn 65% 27% Includes schools, elderly care, LSS-housing and Mainly constitute
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
Slide 7: Underlying megatrends support continued growth
UNDERLYING MEGATRENDS SUPPORT CONTINUED GROWTH Demographic change Sustainability and energy efficiency Urbanization |7
Slide 8: Strong Net Operating Income
STRONG NET OPERATING INCOME ▪ For the year the Net Operating Income of SEK 1,071 million, which adjusted for non-recurring items amounted to SEK 1,091 million, an 1 increase of 24 percent from SEK 877 million during the corresponding period of the previous year. ▪ Our strong net operating income com
Slide 9: Earnings Capacity Property Portfolio as of December 2018
EARNINGS CAPACITY PROPERTY PORTFOLIO AS OF 31 DECEMBER 2018 Current earnings capability for the Group for 12 months SEKm Surplus ratio: 70% 1,600 1,400 472 1,200 27 65 74 1,000 360 800 1,585 600 1,112 400 770 200 0 Rental income Property costs NOI Central Profit from JV Financial Financial Operation
Slide 10: Decreasing New Issue Spreads
DECREASING NEW ISSUE SPREADS NEW ISSUE SPREADS HAVE DECREASED SIGNIFICANTLY FOR SBB Discount margin Bps 750 650 550 S&P BB rating affirmed (Stable outlook) S&P announces BB rating 450 (Stable outlook) 350 329 Bps Maturity 10/03/2022 Fitch announces BB rating 264 Bps 250 (Positive outlook) Fitch anno
Slide 11: Project Development Potential
PROJECT DEVELOPMENT POTENTIAL Current development portfolio (31 December 2018) Example projects Municipality Property Building right, sqm Västerhaninge (Haninge) Zoning plan process Development projects with formal planning process initiated Västerhaninge centrum, Haninge Nyköping Raspen 1,2,3 156,0
Slide 12: 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
Slide 13: Thank You!
THANK YOU! SBB Samhdllsbyggnadsbolaget {SBB) '
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