Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q2 2021 Earnings Presentation
19 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Jul 15, 2021
Slide 1: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 15 July, 2021 Skellefteå Perseus 6 – Cultural center Linköping Adjunkten 2 – Elderly care POPULAR STOCK _____ 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 6 137 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 3: 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 Q2 2021 (EPRA NRV) 35,00 31.02 SEK per ordinary SEK per ordinary A and B share 30,00 Class A and B 25,00 share 20,00 15,00 10,00 5,00 0,00 Q4 2018 Q1 2019 Q2 2019 Q
Slide 4: 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 5: 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 6: World-class team unlocking full potential through three value-add strategies
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 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 Building right development and new Value-adding transactions Investments in existing portfolio Value-adding t
Slide 8: Value-add strategies: building rights development and new production
SBB’S VALUE-ADD STRATEGIES BUILDING RIGHTS DEVELOPMENT AND NEW PRODUCTION The Social Infrastructure Champion in Europe Krister Karlsson Deputy CEO and Property Development Manager Industry experience 36 years Building rights Investments in Value-adding development existing portfolio transactions and
Slide 9: Building rights development and new production breakdown
BUILDING RIGHTS DEVELOPMENT AND NEW PRODUCTION BREAKDOWN 1 Utilizing Building Rights to Create Value Throughout the Value Chain Building Rights Value Potential SEK 29.4bn Building Rights Development SEK 3.6bn 1 BV of Building Rights Estimated Value Potential (upon completion) Estimated value potenti
Slide 10: Building right development and new production
BUILDING RIGHT DEVELOPMENT AND NEW PRODUCTION No. 1 property developer Utilising building rights to create value throughout the value chain Top property developer by building rights (no. of residential units, c. 70 sq.m. per apartment) Project portfolio Develop-to-sell business model Develop-to-hold
Slide 11: 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: 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% Stockholm prime, rent
Slide 13: Vision 2030, sustainability framework, accelerating environmental initiatives
VISION 2030, SUSTAINABILITY FRAMEWORK, ACCELERATING ENVIRONMENTAL INITIATIVES TOWARDS A MORE SUSTAINABLE WORLD Sustainability Vision 2030 – to become the most sustainable property company by 2030 vision through sustainability being an integrated part of the business model ▪ Climate-neutral by 2030 ▪
Slide 14: 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 production Oscar Lekander Carl Lundh Mortimer Business Development Project Development Manager Manager Ind
Slide 15: 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 16: Total value creation
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 17: The Social Infrastructure Champion in Europe
THE SOCIAL INFRASTRUCTURE CHAMPION IN EUROPE 1 Stable cash flow – Backed by AAA-countries Growth fueled by three value-add strategies – Building right development and new 2 production, investments in existing portfolio and value-adding transactions Dividend – Dividend of SEK 1.00 per A- and B class
Slide 18: In summary…
IN SUMMARY… “For the full year 2021, earnings per ordinary share A and B are estimated to be SEK 7.80” Strong and stable cash flow backed by AAA-countries – SBB continues to deliver strong profits, secure cash flows and high growth. Profit after tax was SEK 9.3bn, an increase of 258 percent compared
Slide 19: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — Q2 2021 Earnings Presentation on 6ix