Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q3 2021 Earnings Presentation
21 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Nov 4, 2021
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 4 November, 2021 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care POPULAR STOCK _____ OVER ONE PERCENT OF THE SWEDISH POPULATION IS NOW A SHAREHOLDER IN THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE Sigtuna 2:227 – Pre-school
Slide 2: 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 6 244 6 000 3.04 SEK per ordinary 643 92 Class A and B 5 000 share 144 1 756 4 000 200 832 3 000 4 487 2 000 4 191 4 335 1 000 0 Rental inc
Slide 3: Continuing to deliver stronger than earnings capacity
CONTINUING TO DELVIER STRONGER THAN EARNINGS CAPACITY Comparssion to Earnings capacity Earnings Capacity Q2 Earnings Capacity Q2 SBB Interim report Combined reported Deviation SEKm 12 months 3 months Q3 Unobo Q3 Q3 numbers Quarterly numbers Rental income 6 137 1 534 1 459 110 1 569 35 Net operating
Slide 4: The highest net asset value growth 2019-2021
THE HIGHEST NET ASSET VALUE GROWTH 2019-2021 EPRA NRV per share DEVELOPMENT OF THE LONG-TERM NET ASSET VALUE PER ORDINARY A AND B SHARE (EPRA NRV) Q3 2021 40,00 34.55 35,00 SEK per ordinary 34,55 Class A and B 30,00 31,23 31,02 share 25,00 28,21 24,36 SEK 20,00 20,04 19,52 19,91 15,00 10,00 12,13 12
Slide 5: 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 6: 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 1 358 22 Building rights for regulated rent residentials
Slide 7: Joint ventures and associated companies
Totalling SEK 0.45 JOINT VENTURES AND ASSOCIATED COMPANIES per ordinary A and B share JOINT VENTURES SBB Kåpan Bostad AB Public Property Invest AS SBB holds 50 percent of SBB Kåpan Bostad AB. The remainder is owned by Kåpan Pensioner. SBB holds 50 percent of Public Property Invest AS (”PPI”). The re
Slide 8: SBB's value creation and Vision 2030 – sustainability at the core of the business
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 9: 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 10: 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 ✓ Annual target: SEK 2,000 – 2,500m (no. of apartments, c. 70 sq.m. per apartment) YTD 2021: SEK 2,714m The No. 1 Real Estate D
Slide 11: 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 production SEK +600m Estimated recurring earnings effect per year ✓ Vision of becoming the world’s
Slide 12: 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 13: 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 14: 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 15: Investments in existing portfolio
INVESTMENTS IN EXISTING PORTFOLIO 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% ~6-8% yield on cost
Slide 16: 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 17: 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 100.7bn total acquisitions 2019–2021 assets into portfolios Divestments Acquisitions or
Slide 18: 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 Building rights development Investments in Value-adding and new production existing
Slide 19: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 1 Stable cash flow – Backed by AAA-countries Growth fueled by unique investment platform combining property management 2 with our three value-add strategies – Building right development and new production, investments in existing portfolio and value-addin
Slide 20: In summary…
IN SUMMARY… “New guidance – Forecast for 2021, earnings per ordinary share A and B are estimated to be SEK 9.80 – increased from SEK 7.80 in the second quarter” SBB is now a well-oiled machine where all segments of the property management business and our three value-add strategies contribute every
Slide 21: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — Q3 2021 Earnings Presentation on 6ix