Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q1 2023 Earnings Presentation
20 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Apr 28, 2023
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 28 April 2023 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care Apx. 2 PERCENT OF THE SWEDISH POPULATION IS NOW A SHAREHOLDER IN THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE Sigtuna 2:227 – Pre-school
Slide 2: Strong Operational Performance: Net Operating Income Like for Like 13.4%
STRONG OPERATIONAL PERFORMANCE: NET OPERATING INCOME LIKE FOR LIKE = 13.4.% Like-for-like Q1 2023 Q1 2022 1 Jan 23 – 1 Jan 23 – 1 Jan 22 – Reported Including SEKm 31 Mar 23 31 Mar 23 31 Mar 22 difference residentials Rental income 1,414m 1,428m 1,286m +9.9% +11.0% Property costs -372m -372m -368m -1
Slide 3: 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 – rolling 12 months SEKm Surplus ratio: 78% 8 000 6 856 7 000 99 1 010 6 000 2.86 SEK per ordinary Class A and B 5 000 share 1 500 506 1.78 Including rent increase for 4 000 1 799 SEK per ordina
Slide 4: Rental Income Originates from AAA Assets
RENTAL INCOME - ORIGINATES FROM “AAA” ASSETS Lease maturity overview for community service properties – rolling 12 months Sovereign credit risk exposure in community service Sovereign credit rating Cash flows originating from the most 10 years stable economies in the world, with 99.8% AAA (Stable)
Slide 5: Strategic Plan Going Forward
STRATEGIC PLAN GOING FORWARD 1 The board of SBB has decided to carry out a rights issue of D shares of SEK 2.63bn • Offer to all existing shareholders through a rights issue of Class D shares at SEK 16.00 per share to be used to reduce the company's indebtedness The work with the strategic review an
Slide 6: Rating
RATING Fitch Comments Rating Fitch’s latest report: Rating sensitivities ▪ During the past 12 months, SBB have reduced the total debt by SEK 16.4bn. • Net debt/EBITDA of less than 12x1 BBB- • EBITDA net interest cover greater than 3.0x ▪ SBB’s focus on a stronger rating and lower indebtedness Positi
Slide 7: Partnering with Brookfield Super-Core Infrastructure Partners in the Educational Sector
PARTNERING WITH BROOKFIELD SUPER-CORE INFRASTRUCTURE PARTNERS TO CAPITALISE ON THE OPPORTUNITIES WITHIN THE EDUCATIONAL SECTOR 1 Best positioned to lead a Pan-European consolidation 2 Brookfield Super-Core Infrastructure Partners Current geographical focus BSIP is a perpetual open-end fund with appr
Slide 8: Highlights for the First Quarter 2023
HIGHLIGHTS FOR THE FIRST QUARTER 2023 1 13.4 percent like-for-like growth in NOI – 370 bps above the NOI weighted inflation for 2022 2 85% of the gross debt has a fixed interest rate – The average period of fixed interest for all interest-bearing liabilities of 3.3 years 3 Focus on core business – I
Slide 9: Key Ratios for the First Quarter 2023
KEY RATIOS FOR THE FIRST QUARTER 2023 Key take away’s – Consolidated income statement Q1 2023 Q1 2022 Difference Rental income for the quarter 1,725m 1,831m -5,8% Net operating income 1,206m 1,256m -4,0% Cash flow from operating activities before changes in working capital 284m 744m -61,8% Profit fr
Slide 10: Net Operating Income
NET OPERATING INCOME Period Quarter Full year 1 Jan 23 – 1 Jan 22 – SEKm Q1 2023 Q1 2022 2022 31 Mar 23 31 Mar 22 Rental income 1,725 1,831 1,725 1,831 7,447 Operating costs -423 -455 -423 -455 -1,567 Maintenance -65 -85 -65 -85 -393 Property tax -30 -35 -30 -35 -141 Net operating income 1,206 1,256
Slide 11: Profit from Property Management
PROFIT FROM PROPERTY MANAGEMENT Period Quarter Full year 1 Jan 23 – 1 Jan 22 – SEKm Q1 2023 Q1 2022 2022 31 Mar 23 31 Mar 22 Net operating income 1,206 1,256 1,206 1,256 5,346 Administration -157 -167 -157 -167 -898 Acquisition, restructuring and other costs -30 -13 -30 -13 -120 Profit from associat
Slide 12: Profit Before Tax
PROFIT BEFORE TAX Period Quarter Full year 1 Jan 23 – 1 Jan 22 – SEKm Q1 2023 Q1 2022 2022 31 Mar 23 31 Mar 22 Profit from property management 187 1,326 187 1,326 2,391 Changes in value, property -2,332 2,362 -2,332 2,362 -4,571 Realization result on distribution of Neobo - - - - -3,202 Dissolution
Slide 13: Debt Portfolio
DEBT PORTFOLIO Bond portfolio break down Cost of debt EUR bonds - maturity profile Average SEKbn 50.6 950 maturity 3.9 4.0 4.0 3.9 4.0 750 (years) 700 1.0 559 100 3,71% 3,90% 3,80% 3,61% 4,00% 500 1.1 412 3,36% 3,35% 4.2 98 3,15% 3,50% 95,626 95,376 2,95% 96 94,966 50 3,00% 94 2,29% 2024 2025 2026 2
Slide 14: To Summarize
TO SUMMARIZE 1 The board of SBB has decided to carry out a rights issue of D shares of SEK 2.63bn On-going strategic review and evaluation of the conditions for listing of the subsidiary 2 Sveafastigheter 3 Continued disposal plan of SEK 6bn – First deals closed during April 4 13.4 percent LFL growt
Slide 15: Thank You!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) “
Slide 16: Appendix - This is SBB
APPENDIX - THIS IS SBB Existing segments: • Low risk, as preschools, primary schools, upper secondary Social infrastructure for schools and universities in the Nordics are publicly funded as Public Education well as supported by strong demographics • Elderly care in the Nordics is publicly funded an
Slide 17: Appendix - SBB Overview and Key Highlights
APPENDIX - 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 100% of tenants are sovereign or public-financed tenants
Slide 18: Appendix - Vision 2030 - Becoming Climate Positive in the Entire Value Chain
APPENDIX - 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
Slide 19: Appendix - Recognition of ESG Performance
APPENDIX - RECOGNITION OF ESG PERFORMANCE ESG ratings 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: Industry Le
Slide 20: Appendix - Award-Winning Architecture with Cutting-Edge Technology
IPO of APPENDIX - AWARD-WINNING ARCHITECTURE WITH CUTTING-EDGE TECHNOLOGY Winner Uppsala Architecture Award 2021 Nominated Construction of the Year 2022 Winner Kundkristallen 2021 Tryffeln, Uppsala Prisman, Nacka Hydran, Västerås Nominated Facade of the Year 2022 Winner of the Year's Sustainability
Samhällsbyggnadsbolaget i Norden (SBB) — Q1 2023 Earnings Presentation on 6ix