Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Investor Day (September 2021)
76 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's investor day presentation, Sep 10, 2021
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 10th September 2021 Skellefteå Persueus 6 – Municipal property Linköping Adjunkten 2 – Elderly care Skellefteå Perseus Stockholm 6 – Municipality Brevstället property 2 – Award winning residential property
Slide 2: Today's Presenters – Team with Strong Track Record
TODAY’S PRESENTERS – TEAM WITH STRONG TRACK RECORD Ilija Batljan Krister Karlsson Eva-Lotta Oscar Lekander CEO and Deputy CEO and Head Stridh Head of Business Founder of Property CFO Development Development Annika Erik Rosel Carl Lundh Ekström Hävermark Ragnarsson Mortimer Head of Asset Head of Head
Slide 3: Agenda for Today
AGENDA FOR TODAY Topic Presenter I. SBB Introduction Ilija Batljan, Oscar Lekander, Marika Dimming, Carl Lundh Mortimer II. Our business model – How we create shareholder value Income from property management Annika Ekström, Henrik Melder Value-add: Income from property development Krister Karlsson,
Slide 4: I. SBB Introduction
I. SBB Introduction Ilija Batljan Oscar Lekander Marika Dimming Carl Lundh Mortimer CEO and Founder Head of Business Investor Relations Senior Business Development and Head of Development Manager Sustainability Borlänge Spännaren 10 – City hall
Slide 5: Targets
TARGETS Objective SBB’s objective is to acquire, manage and develop properties that will create a high risk-adjusted return for its shareholders Financial targets Operational targets Dividend policy Income from Profit from property mgmt1 property development Growth Target Target 31 Dec 2020 Target 3
Slide 6: Road to SEK 300bn - Illustration
ROAD TO SEK 300BN - ILLUSTRATION Roadmap Road to SEK 300bn Potential to build 15 000 SEKbn apartments in next 5 years 350 SBB’s building rights portfolio is 59,200 apartments. It is possible for SBB to build 15,000 SEK 183bn apartments in the next 5 years 300 Relatively high net yield for low-risk a
Slide 7: Vision 2030 - Becoming Climate Positive in the Entire Value Chain
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 G Governanc
Slide 8: Road to Become Climate Positive
ROAD TO BECOME CLIMATE POSITIVE Roadmap Electrified service vehicles 11,5 Transition to renewable energy 2016-2019 Service vehicles Continuous improvement through energy 9,5 ✓ Reduced CO2 Low energy measures efficiency measures, exchange of heating emissions systems and green electricity contracts.
Slide 9: Recognition of ESG Performance
RECOGNITION OF ESG PERFORMANCE ESG ratings Upgraded from BB to A 30% 20% 10% 0% CCC B BB BBB A AA AAA Risk reduced by 2.4 to 11.5, threshold for negligible ESG-Risk is 10.0 Peers (Market cap $7.6-$9.6bn) Exposure Management ESG-Risk Rating 40% 1. Samhällsbyggnadsbolaget i Norden AB 27.2 Low 58.5 Str
Slide 10: 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 where tenants are government-funded and highly regulated residentials SEK 17.0bn portfoli
Slide 11: SBB Creates Value from AAA Assets
SBB CREATES VALUE FROM “AAA” ASSETS Income overview Sovereign credit risk exposure in community service Government and government- Sovereign credit rating Rental Income, Classification SEKm % of Total backed tenants Regulated rent residentials 1,314 21 Building rights for regulated rent residentials
Slide 12: Demographic Mega Trends Driving Demand for SBB's Properties
DEMOGRAPHIC MEGA TRENDS DRIVING DEMAND FOR SBB’S PROPERTIES Key considerations Population growth across all the Nordics Population evolution Sweden Norway Finland Denmark ✓ Strong population growth expected in the 35 Nordic countries (c. 4.0m additional 30 inhabitants up to 2050), concentrated in th
Slide 13: SBB's Value Creation and Vision 2030 – Sustainability at the Core
SBB’S VALUE CREATION AND VISION 2030 – SUSTAINABILITY AT THE CORE OF THE BUSINESS The Social Infrastructure Champion in Europe Value-add strategies Building rights development and Investments in existing portfolio Value-adding transactions new construction Annual profit target Annual profit target A
Slide 14: Case Study – Growing in Skellefteå
CASE STUDY – GROWING IN SKELLEFTEÅ Various investments supporting each other Summary Large scale industrial Collaboration/Partnership Municipality Skellefteå investments (Northvolt) with municipality Population 2021 73,200 Population 2030E 90,000 (+23 %) Population growth SBB investments in social T
Slide 15: How We Create Value in Reality, Residential Property
HOW WE CREATE VALUE IN REALITY, ILLUSTRATIVE EXAMPLE FOR A RESIDENTIAL PROPERTY Real estate ◼ Opportunistic acquisition at favorable yield compared to actual market yields. Rent 1,000 SEK/sqm and costs of SEK 475/sq.m. transactions 40,000 sq.m. lettable area. Total investment of approx. SEK 525m Pro
Slide 16: How We Create Value in Reality, Community Service Property
HOW WE CREATE VALUE IN REALITY, ILLUSTRATIVE EXAMPLE FOR A COMMUNITY SERVICE PROPERTY Real estate ◼ Opportunistic acquisition based on current leasing situation where SBB sees a potential for further NOI growth. Total investment of transactions approx. SEK 700m Property ◼ Ongoing proactive dialogue
Slide 17: Strong Management Team and Board of Directors
STRONG MANAGEMENT TEAM AND BOARD OF DIRECTORS Active and hands-on management team with exceptional experience and track-record 27 years Management team’s average years of experience Ilija Batljan Lars Thagesson Krister Karlsson Eva-Lotta Stridh CEO and Founder Deputy CEO and COO Deputy CEO and Head
Slide 18: Continues to Deliver an Even Stronger Operating Profit – Rolling 12 Months
CONTINUES TO DELIVER AN EVEN STRONGER OPERATING PROFIT – ROLLING 12 MONTHS Current earnings capability for the Group for 12 months SEKm Surplus ratio: 72% 7 000 6 137 2.23 6 000 SEK per ordinary Class A and B 5 000 72 share 462 1 731 183 4 000 200 829 3 000 4 405 2 000 3 911 4 093 1 000 0 Rental inc
Slide 19: Overview of SBB Portfolio: Community Service Properties
51% SEK 59.3bn OVERVIEW OF SBB PORTFOLIO: COMMUNITY SERVICE PROPERTIES Portfolio value This unique asset class is defined by low risk publicly financed tenants, long leases with low tenant turnover, high demand and attractive lease terms Low risk municipality and Attractive lease terms governmental
Slide 20: Overview of SBB Portfolio: Publicly Funded Residentials
SEK 22.5bn OVERVIEW OF SBB PORTFOLIO: PUBLICLY FUNDED RESIDENTIALS Portfolio value 19% This unique asset class is defined by extremly low residual risk, long leases with low tenant turnover, high demand and attractive lease terms Propensity to prolong at lease end Specialised residentials ■ 15-25 ye
Slide 21: Overview of SBB Portfolio: Rent Regulated Residential Properties in Growth Municipalities
24% OVERVIEW OF SBB PORTFOLIO: RENT REGULATED RESIDENTIAL SEK 28.0bn PROPERTIES IN GROWTH MUNICIPALITIES Portfolio value 100% focus on rent regulated residentials Key portfolio figures Rent development AVERAGE WAITING TIME FOR RENTAL SEK SEK 15,842 15 Years 28.0bn 1,314m Number Portfolio Passing ren
Slide 22: Value Creation Potential in Future Rent-Uplift
VALUE CREATION POTENTIAL IN FUTURE RENT-UPLIFT Large upside rent potential across all property sub categories RENT REGULATED RESIDENTIALS Market Rent levels (SEK/sq.m.) Yield New Area construction SBB average Upside SEK/sq.m. Rent regulated 1,850 1,089 761 3.25% residentials 3 500 SBB average New bu
Slide 23: Joint Ventures and Associated Companies
Totalling SEK 0.33 JOINT VENTURES AND ASSOCIATED COMPANIES per ordinary A and B share JOINT VENTURES Hemvist Public Property Invest AS SBB holds 50 percent of Hemvist i Mälardalen AB. The remainder is owned by Kåpan Pensioner. SBB holds 50 percent of Public Property Invest AS (”PPI”). The remainder
Slide 24: II. Our Business Model – How We Create Shareholder Value
II. Our business model – How we create shareholder value Borlänge Spännaren 10 – City hall
Slide 25: Income from Property Management
Our business model – How we create shareholder value Income from Property Management Annika Ekström Henrik Melder Head of Asset Head of Norway Management Borlänge Spännaren 10 – City hall
Slide 26: Property Management as the Foundation of SBB's Business Model
PROPERTY MANAGEMENT AS THE FOUNDATION OF SBB’S LEADING BUSINESS MODEL WITH A BEST-IN-CLASS ASSET MANAGEMENT TEAM Experienced asset management team Local market presence ✓ Local market presence in all of SBB’s investment markets ✓ In-house asset management and property management Country office ✓ Ext
Slide 27: Unique Low Risk Asset Class with Long Durations and High Propensity-to-Prolong Tenants
UNIQUE LOW RISK ASSET CLASS WITH LONG DURATIONS AND HIGH-PROPENSITY-TO-PROLONG TENANTS Structured process together with tenants Tenant turnover in community service properties1 ✓ Ongoing dialogue with community service tenants on a quarterly basis 100% Police and justice ✓ Discussions to prolong lea
Slide 28: SBB Norway – A Company within the Company
Our business model – How we create shareholder value SBB Norway – A company within the company Borlänge Spännaren 10 – City hall
Slide 29: Local Experienced Team
LOCAL EXPERIENCED TEAM Henrik Melder Head of Norway Industry experience 23 years SEK 17.0bn Local management team property value Trondheim André Gaden Asset Management Director Ylva Gøransson Cathrine N. Hansli Henrik Larsen Stig A. Nilsson Bergen Oslo Financial Director Investment Manager Developme
Slide 30: A Scalable Model for Growth into New Markets
A SCALABLE MODEL FOR GROWTH INTO NEW MARKETS 1 Strong local organisation – hand-picked my Norwegian dream team Local strong mandate – enabling decisions near the tenants and the market – 2 essential for a local successful model + 3 Backing from the European best-in class management at the Stockholm
Slide 31: Property Management in Summary
PROPERTY MANAGEMENT IN SUMMARY Best in-class property management team Proactive and systematic strategy for property management Scalable model | 31
Slide 32: Value-add: Income from Property Development
Our business model – How we create shareholder value Value-add: Income from property development Borlänge Spännaren 10 – City hall
Slide 33: SBB's Value-Add Strategies: Building Rights Development and New Construction
SBB’S VALUE-ADD STRATEGIES BUILDING RIGHTS DEVELOPMENT AND NEW CONSTRUCTION The Social Infrastructure Champion in Europe Krister Karlsson Deputy CEO and Head of Property Development Industry experience 37 years Building rights Investments in Value-adding development existing portfolio transactions a
Slide 34: No. 1 Property Developer in Europe
NO. 1 PROPERTY DEVELOPER IN EUROPE No. 1 property developer Utilising building rights to create value throughout the value chain Top property developer by project portfolio ✓ Previous target 2021: SEK 1,000 – 1,400m (no. of apartments, c. 70 sq.m. per apartment) Outcome H1: SEK 1,452m ✓ Building rig
Slide 35: Heavily Increased Focus on Organic Growth Through New Construction
HEAVILY INCREASED FOCUS ON ORGANIC GROWTH THROUGH NEW CONSTRUCTION ON OWN BUILDING RIGHTS Total estimated investment in ongoing project portfolio for own management Project portfolio (SEKm) 21 228 SBB (excl Joint ventures) 1 634 18 374 17 770 Joint venture with Kåpan pensioner (50%) 1 634 6.9x 19 59
Slide 36: How Do We Do It? Property Development in the Stockholm Region
HOW DO WE DO IT? PROPERTY DEVELOPMENT IN THE STOCKHOLM REGION ACQUSITION PHASE ZONING PHASE CONSTRUCTION PHASE ✓ Acquistion 2016 as a cash- New building rights developed: ✓ 2021: Construction commences for flow property. Type # sq.m. SEK Value own management. 35,000 sq.m. with /sq.m. mSEK ✓ Importan
Slide 37: How Do We Do It? Property Development in the Copenhagen/Malmö Region
HOW DO WE DO IT? PROPERTY DEVELOPMENT IN THE COPENHAGEN/MALMÖ REGION ACQUSITION PHASE ZONING PHASE CONSTRUCTION PHASE ✓ Acquistion 2016 as part of New building rights developed: major portfolio where this nearly vacant property was ✓ Residentials ✓ 2023: Construction commences for acquired relative
Slide 38: Yet Another Example: Building Right Development in Regional Growth City
YET ANOTHER EXAMPLE: BUILDING RIGHT DEVELOPMENT AND NEW CONSTRUCTION IN REGIONAL GROWTH CITY ✓ Developed: 10,000 sq.m. ✓ Value: SEK 3,000/sq.m. ✓ Additional profit: SEK 8,000/sq.m. from building new rent regulated residentials Total profit = SEK 110m | 38
Slide 39: New Construction – In Charge of the Entire Value Chain
NEW CONSTRUCTION – IN CHARGE OF THE ENTIRE VALUE CHAIN +59,000 apartments project development portfolio Owned concept building factory Assembling in factory Concept building L1 Concept building L2 Key features +2,770 ✓ Largest development portfolio in Europe apartments in on-going construction ✓ Own
Slide 40: Municipal Land Allocations
MUNICIPAL LAND ALLOCATIONS A data driven process Pioneering efforts for sustainability with a long-term approach Mälaräng, part of Fokus Skärholmen Flora, high-quality architecture (Stockholm) (Stockholm) Architecture Social sustainability Environmental sustainability Economic sustainability ✓ SBB’s
Slide 41: Award-Winning Architecture
AWARD-WINNING ARCHITECHTURE Highly innovative urban planning and architecture Sveafastigheter actively co-operates with municipalities to find potential opportunities to improve the urban environment ▪ Sveafastigheter aims to be a prioritised municipal partner for innovative urban planning and archi
Slide 42: Case Studies: Neptun and Hagsätra Hubb
CASE STUDIES: NEPTUN AND HAGSÄTRA HUBB Leading developer of socially and environmentally sustainable housing Award-winning project with cutting-edge technology Social sustainability in Hagsätra Neptun, Västerås, 121 apartments Hagsätra Hubb, Stockholm, 129 apartments ▪ In 2018, Sveafastigheter compl
Slide 43: A Joint Venture Between SBB and Kåpan Pensioner
A JOINT VENTURE BETWEEN SBB AND KÅPAN PENSIONER A growth company in Stockholm/Mälardalen Structure and key facts • Hemvist is a residential real estate company that owns new-built rent Kåpan regulated residentials in the Stockholm/Mälardalen region SBB Pensioner SBB 50% 50% • The strategy is to deve
Slide 44: Demographic Needs and Supply Shortage of Social Infrastructure Properties in Sweden
DEMOGRAPHIC NEEDS AND SUPPLY SHORTAGE OF SOCIAL INFRASTRUCTURE PROPERTIES IN SWEDEN Shortage General population growth Age group 10-19 yrs ✓560 new elderly care units until 2026 Age group 80+ yrs ✓74 new health care centers until 2026 +4.6% +10% ✓1,000 new schools and pre-schools until 2030 until 20
Slide 45: Public Procurement Case Study – Municipality Property in Västerås
PUBLIC PROCUREMENT CASE STUDY – MUNICIPALITY PROPERTY IN VÄSTERÅS, STOCKHOLM REGION Overview before project initiated Major parking lot near the train station Jan 2017 Nov 2017 Nov 2018 Dec 2019 Public SBB won the public 15 years lease contract Start of construction procurement procurement signed wo
Slide 46: Public Procurement Case Study – Contd.
PUBLIC PROCUREMENT CASE STUDY – MUNICIPALITY PROPERTY IN VÄSTERÅS, STOCKHOLM REGION CONTD. Development until today – on-going construction | 46
Slide 47: Case Study – New Police Station in Västerås
CASE STUDY – NEW POLICE STATION IN VÄSTERÅS, STOCKHOLM REGION Mellan Västerås citykärna och Mälaren ska den nya stadsdelen Mälarporten utvecklas och här ska SBB i samarbete med Polismyndigheten uppföra ett nytt polishus och häkte. Projektet föregås av en detaljplaneändring på en utmanande plats komb
Slide 48: SBB Long Term Partner to a Municipality in the Stockholm Region
SBB LONG TERM PARTNER TO A MUNICIPALITY IN THE STOCKHOLM REGION (HANINGE MUNICIPALITY) ✓ Long term collaboration with Haninge Municpality ✓ Owner of more than 100,000 sq.m. lettable area with the municipality as the main tenant ✓ Long-term partnership has led to: o Development of new school and elde
Slide 49: Property Development in Summary
PROPERTY DEVELOPMENT IN SUMMARY Property Investments in Real estate development existing portfolio transactions SEK 2.0-2.5bn We have all the essential components; team, land bank, ownership in construction company, best-in-class management, balance sheet with BBB+ metrics Strong demand. 4m new inha
Slide 50: Value-add: Income from Investments in Existing Portfolio
Our business model – How we create shareholder value Value-add: Income from investments in existing portfolio Borlänge Spännaren 10 – City hall
Slide 51: SBB's Value-Add Strategies: Investments in Existing Portfolio
SBB’S VALUE-ADD STRATEGIES INVESTMENTS IN EXISTING PORTFOLIO The Social Infrastructure Champion in Europe Building rights Investments in Value-adding development existing portfolio transactions and new construction SEK 600m Peter Olausson Chief Technical Officer Industry experience ✓ Value-add renov
Slide 52: Unique Residential Renovation Business Model in Sweden
UNIQUE RESIDENTIAL RENOVATION BUSINESS MODEL IN SWEDEN ▪ ILLUSTRATIVE EXAMPLE OF INCREASE IN RENT THROUGH RESIDENTIAL RENOVATION Rent formula After renovation but with Before After renovation 𝑁𝑜𝑟𝑚𝑎𝑡𝑖𝑣𝑒 𝑟𝑒𝑛𝑡 ∗ additional room created (𝐴𝑟𝑒𝑎 + 𝐴𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡 𝑝𝑜𝑖𝑛𝑡𝑠) ∗ 77…
Slide 53: Illustrative Renovation and Creation of an Additional Room
ILLUSTRATIVE RENOVATION AND CREATION OF AN ADDITIONAL ROOM 1 room and kitchen over 41 sq.m. with existing floor plan Renovation from Ground Up Kitchen Bathroom ■ The apartment is renovated from the ground up – all vertical piping ■ New, modern kitchen with ■ New, tiled bathroom with is replaced alon
Slide 54: Unique Rent Setting Model upon Renovation Allows for Significant Upside
UNIQUE RENT SETTING MODEL UPON RENOVATION ALLOWS FOR SIGNIFICANT UPSIDE Key considerations Rent and yields levels across new / non-renovated / renovated apt. ✓ Since 1997, average rent increase has been Rent levels (SEK/sq.m.) Yield Area New production Non-renovated Post-renovation Low High between
Slide 55: Adding Income Through Digitalisation
ADDING INCOME THROUGH DIGITALISATION New app for our residential tenants enable a smoother two-way communication ✓ We provide an app to all our residential tenants ✓ Mainly used to communicate with the tenants – as well as handling digital rental notices and, in the long-run, handle bookings of laun
Slide 56: Investments in Existing Portfolio in Summary
INVESTMENTS IN EXISTING PORTFOLIO IN SUMMARY Property Investments in Real estate development existing portfolio transactions SEK 2.0- SEK 600m 2.5bn Sweden has a unique rent setting model based on utility value Large remaining value potential in the portfolio Digitalisation generates additional inco
Slide 57: Value-add: Income from Transactions
Our business model – How we create shareholder value Value-add: Income from transactions Borlänge Spännaren 10 – City hall
Slide 58: SBB's Value-Add Strategies: Value-Adding Transactions
SBB’S VALUE-ADD STRATEGIES VALUE-ADDING TRANSACTIONS The Social Infrastructure Champion in Europe Building rights Investments in Value-adding development existing portfolio transactions and new construction Oscar Lekander Carl Lundh Mortimer Magnus Edlund Head of Business Senior Business Senior Busi
Slide 59: Value-Adding Transactions
VALUE-ADDING 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 96.1bn total acquisitions 2019–2021 assets into portfolios Divestments Acquisitions or s
Slide 60: Major Transactions Completed Since 2019
MAJOR TRANSACTIONS COMPLETED SINCE 2019 Nature of Counterparty Transaction volume Rationale transaction SEK 6.9bn Acquisition Adding scale in growth cities 2021 SEK 2.5bn Acquisition Adding scale in elderly care Various SEK 1.7bn Disposal Selling non-core properties with short WAULT Adding scale and
Slide 61: The Largest Elderly Care Transaction in the Nordics
THE LARGEST ELDERLY CARE TRANSACTION IN THE NORDICS H1 2021 STOCKHOLM MALMÖ/COPENHAGEN VOLUME: SEK 2.5bn WAULT: 14.5 years | 61
Slide 62: Real Estate Transactions in Summary
REAL ESTATE TRANSACTIONS IN SUMMARY Property Investments in Real estate development existing portfolio transactions SEK 2.0- SEK 600m SEK 400m 2.5bn Active portfolio management generating recurring income Strong partnership with municipalities and other market participants Highly experienced transac
Slide 63: SBB's Value Creation and Vision 2030 – Sustainability at the Core
SBB’S VALUE CREATION AND VISION 2030 – SUSTAINABILITY AT THE CORE OF THE BUSINESS The Social Infrastructure Champion in Europe Value-add strategies Building rights development and Investments in existing portfolio Value-adding transactions new construction Annual profit target Annual profit target A
Slide 64: III. Balance Sheet Strength and Treasury Update
III. Balance Sheet Strength and Treasury Update Eva-Lotta Stridh Rosel Ragnarsson CFO Head of Finance Borlänge Spännaren 10 – City hall
Slide 65: Solid Balance Sheet and Diversified Sources of Funding
SOLID BALANCE SHEET AND DIVERSIFIED SOURCES OF FUNDING Assets (SEK 154.1bn) Equity and Liabilities (SEK 154.1bn) ■ Participations in associated ■ Equity excl. hybrid ▪ A+B+D : SEK 44,147m SEK 63,126m Total equity ▪ NCI: SEK 1,857m companies/JVs - SEK 7,099m (5%) - SEK 46,004m (30%) (41 %) ■ Hybrid i
Slide 66: Efficient Share Structure as per 31 August 2021
EFFICIENT SHARE STRUCTURE AS PER 31TH OF AUGUST 2021 Share of class A Share of class B Share of class D Listed – ✓ ✓ Share count 209,977,491 1,216,869,423 193,865,905 Voting rights 1 vote per share 1/10 vote per share 1/10 vote per share ✓ Class A and Class B common shares are entitled to ✓ Entitled
Slide 67: Credit Rating
CREDIT RATING Objective Clear impact on finance costs since the first issuance Credit Rating First confirmed First confirmed IG Current confirmed rating rating rating Lowering cost of debt 2.52% 1.13% BB BBB- ✓ BBB- (Q1 2019 before IG rating) (Q2 2021) (Jan 2018) (Apr 2019) (positive outlook) Perpet
Slide 68: Strong Balance Sheet with Low Cost of Debt and Long-Dated Maturity Profile
STRONG BALANCE SHEET WITH A LOW COST OF DEBT AND LONG-DATED MATURITY PROFILE Diverse debt and capital structure Long-dated maturity profile1 50%1 / 45%2 Debt structure matures beyond 5 yrs 10% 15% 9% 15% 1% 50% Latest Developments 1% 32,691 10% In May 2021, SBB 18% issued an unsecured 72,332m bond w
Slide 69: Capital Market Activity – Robust Access to Funding
CAPITAL MARKET ACTIVITY – ROBUST ACCESS TO FUNDING Capital market activity per year Capital market activity per issuance type 2017-21 YTD Issuance (SEKbn) Issuance (SEKbn) 38.6 Latest bond issuances 30.8 Unsecured bonds 57.3 On 18 June 2021, SBB 25.5 issued the first social perpetual hybrid bond EUR
Slide 70: Strong Increase in Sustainable Financing Since Launch of New Framework
STRONG INCREASE IN SUSTAINABLE FINANCING SINCE LAUNCH OF NEW FRAMEWORK IN NOVEMBER 2020 Key benefits of sustainable financing 2019-2021YTD Sustainable bonds issuances 12 000 61,1% 70,0% Amount SEKm Sustaianble issuances as share of total 60,0% ▪ A more diversified investor base 10 000 43,3% 50,0% 8
Slide 71: Balance Sheet and Treasury in Summary
BALANCE SHEET AND TREASURY IN SUMMARY Strong financial position SEK 53 bps lower financial costs since Q4 2019 ✓ Delivered all key metrics for BBB+ rating On path to 100% sustainable financing | 71
Slide 72: IV. New Goals
IV. New Goals Ilija Batljan CEO and Founder Borlänge Spännaren 10 – City hall
Slide 73: Targets
TARGETS Objective SBB’s objective is to acquire, manage and develop properties that will create a high risk-adjusted return for its shareholders Financial targets Operational targets Dividend policy Income from Profit from property mgmt1 property development Growth Target Target 31 Dec 2020 Target 3
Slide 74: Closing Remarks
CLOSING REMARKS Proposed dividend of SEK 1.32 per ordinary share A and B, divided into twelve monthly installments, and a new property target of SEK 300bn for the size of SBB’s property portfolio by the of 2026 Unique business model with three value-add strategies ✓ Unique operational platform – key
Slide 75: Q&A
Q&A Borlänge Spännaren 10 – City hall
Slide 76: Disclaimer
DISCLAIMER IN REVIEWING THIS PRESENTATION AND ITS CONTENTS, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER. THIS PRESENTATION AND ITS CONTENTS ARE BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT. If you are not the intended recipient of this p
Samhällsbyggnadsbolaget i Norden AB (SBB) — Investor Day (September 2021) on 6ix