Investor Presentation - 31 Mars 2021
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Investor Presentation – 31 Mars 2021
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These materials have been prepared by and are the sole responsibility of Vasakronan AB (publ) (the “Company”) and have not been verified, approved or endorsed by any lead manager, bookrunner or underwriter
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2
AGENDA
1. Vasakronan Overview 4
2. Business Description 10
3. Swedish Real Estate Market Overview 19
4. Financials 24
5. Funding 30
6. Appendix 36
3
Byt ut
bild
1.
VASAKRONAN
OVERVIEW
VASAKRONAN IN BRIEF
Vasakronan owns, develops and manages office properties in Sweden
• Largest Nordic real estate
Contracted Rent by Property Type
company
Offices, 75%
Consumer durables, 11%
• Modern and high quality portfolio
1%5,0%
1,0% Garage, 3%
3%
3%
1%
in prime locations
Restaurants, 3%
11%
Residental, 5% • Strong and committed long-term
Consumables, 1%
owners
Hotels, 1%
75%
Other, 5%
Contracted Rent by Geographic Market
• Market value EUR 16.1 bn
Uppsala
8%
Stockholm • Total area (thousand) 2,339 sqm
10%
Stockholm, 65%
Gothenburg, 17 % Gothenburg • Contracted rent EUR 738 m
17% Malmö. 10%
65% Uppsala, 8 %
• Number of properties 170
Malmö
• Number of employees 299
5
As of 31 March 2021. FX-rate EURSEK 10.24
LARGEST REAL ESTATE COMPANY IN THE NORDICS
Investment property value, EUR bn
16
14
12
10
EUR bn
8 16
15
14
6 12
10 10
9
4 8
7
6 6 6 5
5 5 5
2 4 4
0
Source: Q4 2020 report of each of the companies above
As of 31 December 2020. FX-rate EURSEK 10.05
6
TIMELINE & KEY EVENTS
Consistent growth over a period of two decades. Focus on markets with high growth and liquidity
Continously improved quality in the portfolio through transactions and project development amounting to EUR 0.2-0.4 bn per annum
18
16
Market value EUR bn
14 CAGR 2008 - 2020: 6 %
12
10
8 15,9 16,1
13,2 14,9
6 12,0
11,0
9,8
8,0 8,3 8,7
4 7,1 7,3 7,8
6,8
2
1,9
0
1998 2000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021
AP Fastigheter acquires Divestment of a portfolio of Issues the
AP Rating assigned by
Vasakronan EUR 4 bn residential properties for world’s first
Fastigheter Moody’s –A3
EUR 0,7 bn Corporate
established
Carbon neutral operations green bond
by the Issues the world’s first
AP-funds Signs Sweden´s first Green green CP
Certified according to ISO 14001 lease agreement
7
As of 31 March 2021. FX-rate EURSEK 10.24
THE AP-FUNDS’ ROLE IN THE SWEDISH PENSION SYSTEM
Vasakronan is the Swedish National Pension Funds´ main exposure to the Nordic office market
Vasakronan AB
COMMENTS
• AP-funds are closed-end buffer-funds and part of the Swedish national income pension system
• All AP-funds are independent of the government. The funds´ operations are regulated by the Swedish National Pension Funds Act
• The CEOs of the AP-funds are part of Vasakronan´s Board of Directors
• The AP-funds support Vasakronan with a credit commitment of EUR 1.8 bn and CoC-clause in all funding
8
ASSIGNED A3 (STABLE) RATING BY MOODY’S
“Largest real estate company by asset value “100% ownership by AP funds, and
in the Nordics with a dominant position in ultimately the government, and our
Sweden’s most attractive office markets” expectation of extraordinary support"
1 2 3 4
Substantial amount of
25% of rental revenues Largest real estate
liquidity supported by a
Long-term Government stem from creditworthy company in Sweden with
credit facility from the
related owners (AP 1-4) government and public dominant position in
owners amounting to
sector tenants prime office locations
EUR 1.8 bn
5 6 7
The project portfolio by
High share of
nature includes a
environmentally certified LTV policy below 55 % by
properties with high
speculative element but
represents a relatively
A3
A3 with Stable outlook
ratings
small part of total asset
9
2. BUSINESS DESCRIPTION
THE STRATEGY
Sustainability is a natural, integral part of Vasakronan’s organization and business. This applies to the board,
management and our everyday activities
GROWTH OFFICES AND
MARKETS CITY RETAIL
The premises are modern, efficient
Focus on locations in Sweden
and centrally located in areas
with strong economic growth
with good communication.
and high liquidity
Retail is concentrated to city centers
ACTIVE TRANSACTIONS AND
PRIME LOCATION
ASSET MANAGEMENT PROJECT DEVELOPMENT
The property stock consists of The property stock is continuously We have a clear and well balanced
premises that remain attractive even developed in order to meet the strategy for transactions and project
in times of less demand demand and improve quality development
11A SUSTAINABLE BUSINESS MODEL
COMMENTS
• The energy consumption has been more than halved since 2009
• Renewable or climate-neutral energy have reduced carbon dioxide
emissions in Scope 1 and Scope 2 with approximately 86 percent
between 2006-2020
• Vasakronan’s goal is to be climate neutral in the whole value chain,
including scope 3, by 2030
• As at 31 March, 2021, 90 percent of the portfolio have environmental
certification. The certification system mostly used is LEED and 76
percent of the portfolio are certified according to LEED on a Gold or
Platinum level
• The target is to have a 100 percent green asset portfolio
ENERGY CONSUMPTION ROADMAP 2030 – CLIMATE NEUTRALITY IN THE WHOLE VALUE
CHAIN
210
190
170
-61%
kWh/sqm
150
130
110
90
70
2021…
50
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
12
As of 31 March 2021MODERN AND HIGH QUALITY PORTFOLIO IN PRIME LOCATIONS
Birger Jarlsgatan, Stockholm CBD Läppstiftet, Gothenburg CBD
Aura, Malmo Juvelen, Uppsala
13DIVERSIFIED PUBLIC AND MULTI TENANT BASE
VASAKRONAN´S TEN LARGEST TENANTS
CONTRACTED RENT BY SECTOR, TENANT TYPE SHARE IN %
% OF PROPERTY PORTFOLIO
Swedish Police Authority Public 3%
Public sector, 23%
Ericsson Private 3%
Services, 23%
14%
23%
Consumer, 16% H&M (Offices and stores) Private 2%
3%
Goods
3%
IT,12% King Public 2%
6%
Finance, 6%
Swedish Prison and Probation Service Public 2%
12% 23% Telecom, 3%
Swedish Social Insurance Agency Public 1%
16% Industry, 3%
Åhléns Private 1%
Other, 14%
Handelsbanken Private 1%
EY Private 1%
4 001 commercial contracts
Swedish National Courts Administration Public 1%
(residential and garage not included)
TOTAL 17%
14
As of 31 March 2021.CONTRACTED RENT BY PROPERTY TYPE
Vasakronan’s revenues are anchored in the office sector with diversification into other segments such as retail
STOCKHOLM UPPSALA
Contracted Rent by Property Type Contracted Rent by Property Type
% of Properties % of Properties
7%
13%
11%
Offices
Offices
Retail 19%
Retail
Other
68% Other
82%
Central Stockholm Stockholm
inc CBD - Central Business inner suburbs Central Uppsala
District
1) Thecategory “other” includes residential space, parking and hotels. 15
As of 31 March 2021.CONTRACTED RENT BY PROPERTY TYPE (CONT’D)
…with Stockholm as core city and Uppsala, Gothenburg and Malmo as key hubs
MALMO GOTHENBURG
Contracted Rent by Property Type Contracted Rent by Property Type
% of Properties % of Properties
11% 5%
27% 32%
Offices Offices
62% Retail Retail
63%
Other Other
16
1) Thecategory “other” includes residential space, parking and hotels.
As of 31 March 2021MARKET SHARE BY REGION
Vasakronan, the largest property owner in its key operating cities and can thus offer customers greater flexibility
CENTRAL STOCKHOLM INCLUDING CBD CENTRAL UPPSALA
25 25
21%
20 20
15 13% 15
12%
9% 9% 8%
10 10
4%
4% 4%
5 3% 5
0 0
Vasakronan AMF Hufvudstaden Skandia Vasakronan Skandia Uppsala SBB Castellum
Fastigheter Akademi
GOTHENBURG CBD MALMO CBD AND VÄSTRA HAMNEN
25 21% 25
18%
20 20
14% 15%
15 15
10 9% 10
7% 6% 5%
5 5 4% 3%
0 0
Vasakronan Wallenstam Hufvudstaden Balder Göteborgs Vasakronan Wihlborgs Balder Volito Malmo
kommun kommun
17
Source: CBRE and Datscha, as of 31 December 2020HIGH QUALITY PROJECT PORTFOLIO
Most of the project aren’t started until lease agreements are in place
COMMENTS PROJECT PORTFOLIO
• Project development delivers higher return than acquiring properties 100%
• Most of the projects are only started if lease agreements are in place
• Ongoing property developments projects have a total investment 80% 80%
volume of EUR 1,328 m, of which EUR 957 m had been capitalized as of 72%
31 Mars 2021 60%
• The project portfolio represents 7.3 per cent of total assets
40%
• As of 31 Mars 2021 the average occupancy rate in major property
projects was 80 percent which represents an annual rent revenue of
20%
approximately EUR 72 m
• The percentage of completion was 72% percent
0%
2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
Percentage of Completion, % Occupancy Rate, % (area)
Kronan, Sundbyberg, Stockholm, EUR 167 m Platinan, Gothenburg, EUR 259 m
18
As of 31 March 2021. FX-rate EURSEK 10.243.
SWEDISH
REAL ESTATE MARKET
OVERVIEWMARKET OVERVIEW
COMMENTS STEADY URBANISATION TREND IN SWEDEN
Inhabitants Stockholm Municipality
• Strong demand for commercial real estate investment in general
and stable cash flow properties in particular which has put upwards
pressure on prices e.g. social infrastructure properties and multi-
family residential properties 1 100 000
1 000 000
• WFA has been a trend in Sweden for some time and effects on 900 000
800 000
prime office properties is though to be limited
inhabitants
700 000
600 000
• The urbanisations trend in Sweden is strong, especially in the larger 500 000
regions and it is expected to continue albeit with a slight paus due 400 000
300 000
to Covid restrictions and skyrocketing residential prices in 200 000
Vasakronan’s regions 100 000
0
• The supply of new office space has been far lower than demand
2021E
2022E
2023E
2024E
2025E
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
HIGHER RENT BUT LOWER COST PER EMPLOYEE STRONG SWEDISH PROPERTY MARKET
EUR Transaction volume, EUR bn
16 000 15 148 20
SQM/EMPL 25,0
14 000
12 000 20,0
10 000
7 715 10 15,0
EUR
8 000 SQM/EMPL
6 000 10,0
4 000
5,0
2 000 757 771
0,0
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2000 2020
Domestic Investors International Investors
Rent per workspace Rent per sqm
Rents in 2020 monetary value.
20
Source: Stockholm stad, Cushman & Wakefield and SCB as of 31 December 2020, FX-rate EURSEK 10.24EUR/sqm EUR/sqm
150
200
250
300
350
150
250
350
450
550
650
750
2005 2005
2006 2006
2007 2007
FX-rate EURSEK 10.24
2008 2008
2009 2009
STOCKHOLM CBD
GOTHENBURG CBD
2010 2010
2011 2011
2012 2012
2013 2013
Source: Cushman & Wakefield. As of 31 March 2021
2014 2014
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 Q1 2021 Q1
Stable office rents at a high level in all markets
0
5
0
5
10
15
10
15
(%) (%)
EUR/sqm EUR/sqm
Rent / sqm
150
200
250
300
150
200
250
300
2005 2005
2006 2006
2007 2007
MALMO CBD
Vacancies, %
2008 2008
2009 2009
2010 2010
MARKET RENTS AND VACANCIES - OFFICES
UPPSALA INNER CITY
2011 2011
2012 2012
2013 2013
2014 2014
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 Q1 2021 Q1
0
5
0
5
10
15
10
15
(%) (%)
21RETAIL MARKET OVERVIEW
Higher consumption of consumer goods, physical stores challenged by e-commerce and the pandemic
COMMENTS
• The retail sector as a whole as developed well during the pandemic but
certain subsectors, e.g. clothing and footwear, has been hard hit
• E-commerce companies are establishing omni-channel concepts
• Retailers are in prime retail locations opening flagship stores
• Vasakronan is converting some secondary retail space info office space
• The March HUI Research report estimates that the consumption of
consumer durables, including e-commerce, will increase by 2.5% in 2021
.
RETAIL SALES SERGELGATAN STOCKHOLM CBD
Growth in Total Retail Sales, %, E = Estimate
5,8%
6%
5%
4% 3,6% 3,7%
3,4% 3,4% 3,4%
2,9%
3% 2,7%
2,5%
2,0% 2,0% 2,1% 2,0%
2%
1% 0,7%
0%
(1%)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 E 2022 E
Source: SCB, HUI Research March 2021, E-barometern. 22EUR/sq.m EUR/sqm
150
350
550
950
750
1 150
150
350
550
750
950
1 150
1 350
1 550
1 750
1 950
2005 2005
2006
FX-rate EURSEK 10.24
2006
2007 2007
STOCKHOLM CBD
2008 2008
GOTHENBURG CBD
2009 2009
2010 2010
2011 2011
2012
Source: Cushman & Wakefield. As of 31 March 2021
2012
2013 2013
2014 2014
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 Q1 2021 Q1
0
2
4
6
8
0
2
4
6
8
10
10
% (%)
Rent / sqm
EUR/sqm EUR/sqm
150
350
550
150
350
550
2005 2005
2006 2006
Vacancies, %
MALMO CBD
2007 2007
2008 2008
2009 2009
UPPSALA INNER CITY
2010 2010
2011 2011
2012 2012
2013 2013
2014 2014
2015 2015
2016 2016
MARKET RENTS AND VACANCIES – RETAIL PREMISES
2017 2017
2018 2018
2019 2019
2020 2020
2021 Q1 2021 Q1
0
2
4
6
8
0
2
4
6
8
10
10
(%) (%)
234. FINANCIALS
TOTAL RETURN
Business target - a total return of at least 6,5% over a ten year period, and a total return of 0,5% above the
industry average
20%
Vasakronan
MSCI Swedish Property Index(1)
15%
10,5%
9,4%
10%
Capital Growth
5%
Income Return
0%
VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI
10 year average
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
COMMENTS
Vasakronan has delivered a better total return than the Swedish Property Index MSCI nine out of ten years
External valuation is carried out twice a year by independent firms of appraisers pursuant to the RICS Red Book
Notes: (1) MSCI-Index excludes Vasakronan.
Source: MSCI Swedish Property Index. 25STABLE OCCUPANCY RATE
Occupancy rates have been stable over the cycle. 2 % of the office vacancy is related to project development
OCCUPANCY RATE VACANCIES
%
100%
8.5%
90
80
1,8%
70
8.5%
60
50 6,7%
91,9 92,8 93,0 93,0 93,4 92,0 92,6 94,2 93,1 93,1 94,1 91,9 91,5
40
30
Investment Properties
20 Projects
10
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1
26
As of 31 March 2021LEASE AGREEMENTS AND CONTRACT RENEWALS
During the last 12 months the rents on renewals have increased by 7.3 %
DURATION IN CONTRACT PORTFOLIO 1) NET LEASING VOLUMES
Average EUR m
60% Term 3.9 Years (Share, %)
50
50
40
% of the portfolio's leases
30
40% 20
maturing
10
0
20 -10
20% 16
-20
10
-30
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
0%
2021 2022 2023 2024 and after Moves, EUR m Net lettings, EUR m Net lettings, EUR m
COMMENTS
An average lease agreement in the Swedish market is between 3 and 7 years
Lease agreements up to 25 years in properties built for special purposes, for example courts and life science
Tenants normaly pays for heating, cooling, waste management and property tax
Lease agreements are adjusted according to inflation with a protection against deflation
Due to rising rents the rent on renewals have increased by 7.3 percent in total during the last 12 months
The result of renegotiations related to offices amounted to 11.9 percent and for retail the result was down 7.1 percent
1) Garage, 1% and Residential 3% is not included in average duration of the contract portfolio 27
As of 31 March 2021. FX-rate EURSEK 10.24INCOME STATEMENT
Rental revenue has been improved over time and interest expenses stable at a low level
COMMENTS
RENTAL REVENUE
Revenues have increased by approximately 30 percent
compared to 2009 1000 600
900
Property expenses have been stable at a low level during the 800
688 684 689
500
634 656
same period 700
591 583 589 576 587 610 400
600 524 538
The pandemic has had a total negative impact on revenue of
EUR m
500 300
EUR/sqm
400
EUR 13.8 million in terms of rent discounts, rent relief, 200
300
provisions for doubtful rent receivables and reduced parking
200
revenue for the year 2020. 100
100
0 0
The total negative impact during Q1 2021 amounts to EUR 0.9 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
million Q1
R12
EBITDA
INTEREST EXPENSES
800 600 -250
75% 71% 71%
700 73%
70% 71% 500
69% 69% 70% -200
600 70%
68%
66% 481 513 482 486 400 -161 -154
500 63% 409 427 447 -147
402 409 409 398 -150
EUR m
-129 -124 -123
EUR m
400 333 352 300 -109 -113 -114 -102 -110 -109
EUR/sqm
300 -100
200
200
-50
100
100
0 0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q1
R12
28
As of 31 March 2021. FX-rate EURSEK 10.24CAPITAL STRUCTURE AND INTEREST COVERAGE RATIO
LTV has been below 50% since 2011 and ICR has been way above the minimum of 2.0 times
ICR & LTV TARGET DIVIDEND POLICY
• Interest Coverage Ratio has improved substantially and is • Under normal circumstances dividends shall correspond to
well above the minimum of 2.0 times 40-60 percent of the Group's profit before value changes
and after taxes
• LTV shall have maximum of 55 percent
• In order to avoid over capitalization, larger dividend can be
• LTV has been below 50 percent since 2011 paid in periods of rising property values
• LTV is accepted be lower at times of high property values • In times of negative property value development, dividends
and vice versa may need to be lower or none, and if required, capital
injection will be requested from the owners
INTEREST COVERAGE RATIO LOAN TO VALUE
times %
60% 56% 57%
53% 51%
49% 49% 55 %
6 50% 47% 46% 45%
42% 40% 41% 42%
4,7 4,6
5 4,4 4,7 40%
4 3,7 3,8 3,9
3,2 30%
2,8 2,9 2,8
3 2,5 2,7
20%
2
2,0 Times
1 10%
0 0%
2009201020112012201320142015201620172018201920202021 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Q1 Q1
R12
29
As of 31 March 2021.5. FUNDING
GOVERNMENT BACKED OWNERSHIP STRUCTURE
Vasakronan is the Swedish National Pension Funds’ strategic investment in the Swedish office market.
Therefore, they are supporting the Company with a RCF and CoC clauses on all debt instruments.
CREDIT FACILITY CHANGE OF CONTROL
Vasakronan has a EUR 1.8 bn revolving credit The change of control clause covers all our
facility with the owners. capital market and bank funding. It is one
example of our owners’ long-term commitment
The agreement has a constant maturity and can which provides security to our investors
be terminated with a notice period of 24 months
Change of Control occurs when the aggregate
The commitment can be used for general holdings of AP Funds ceases to represent at
corporate purposes least 51 per cent. of the total voting rights
represented by the shares and the rating is
Gives extremely strong liquidity position and lowered by at least one full rating notch
lowers risk of short-term funding
31DIVERSIFIED FUNDING
With high proportion of green financing
COMMENTS LARGE PROPORTION OF DARK GREEN FUNDING
• Vasakronan has a diversified funding with a broad investor
base
• Limited Secured LTV at 6 percent of Total Assets
• First corporate in the world to issue a Green Bond and a
Green Commercial Paper
• Dark green Second Opinion from CICERO and an Impact
Report that is validated by the auditors
DEBT PORTFOLIO, EUR BN
NIB and EIB
522
SEK NOK
54% 25
Secured Bank
Loans
Bonds % 61%
4776
974 Green
Funding
Commercial Paper EUR
873 11%
JPY
USD HKD AUD 2%
6% 1% 1%
32
As of 31 March 2021. FX-rate EURSEK 10.24VASAKRONAN´S GREEN FINANCE FRAMEWORK
Vasakronan´s Green Bonds raise funds for projects with environmental benefits
COMMENTS
• Second Opinion from CICERO with Dark Green Shading
• The proceeds from Vasakronan´s green bonds are financing
the following green projects;
o New construction and major renovation – LEED Platina and
at least 25 percent below current building regulation
(Swedish BBR code)
o Existing buildings – LEED Gold and energy performance
under 100 kWh/sqm
o Solar energy projects
33
As of 31 March 2021DEBT OVERVIEW
Low risk due to long Average Fixed Interest Term and long Average Loan Maturity
COMMENTS
AVERAGE INTEREST RATE,
• Credit facility from owners, EIB and cash covers all debt FIXED INTEREST TERM AND AVERAGE LOAN MATURITY
7
maturities and cash flows within 18 months
6
• Excess liquidity amounts to EUR 594 m as of 31 March 2021
5
• Short term debt has been replaced by longer tenors
Years / %
4
• Long average fixed interest rate maturity of 5.5 years 3
2
1
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Q1
Fixed interest term Average loan maturity Average interest rate
DEBT MATURITY PROFILE, AVERAGE OF 5.2 YEARS CASH BALANCE AND CASH FLOW 18 MONTHS
1 600
3000 2384
1 400 2500
1 200
2000
1500
1 000 1000
800 500 594
0
600
-500 1
400 -1000
200 -1500
-2000
0 -1790
0–1 1–2 2–3 3–4 4–5 5-6 6-7 7-8 8-9 9-10 >10
Bonds Bank Loans Commercial Papers
34
As of 31 March 2021. FX-rate EURSEK 10.24KEY CREDIT HIGHLIGHTS
Government Largest real
backed ownership estate company
structure in the Nordics
Sustainable
Business Modern and high
Strong Model quality Office-
financial portfolio in
performance prime locations
Diversified public
and multi
by
A3
A3 with Stable outlook
tenant base
35APPENDIX
FINANCIAL POLICY
Vasakronan has a conservative Treasury Policy with limited risk.
POLICY
FINANCIAL POLICY ACTUAL AS AT 31 MARCH
FINANCING RISK
Average Loan Maturity At least 2 years 5.2 years
Loan Maturing 12 Months Max 40% 21%
Credit Facility from Owners and Cash / Loan Maturity 12 Months At least 100% 162%
INTEREST RATE RISK
Interest Coverage Ratio At least 2,0 times (last 12 months) 4.5 times
FINANCIAL
RISKS Fixed Interest Term At least 2 years 5.6 years
Interest Maturity within 12 Months Max 55% 31%
CREDIT RISK
At least A-, or BBB+ for derivatives under
Counterpart´s Rating Fulfilled
CSAs
CURRENCY RISK
Currency Exposure without assets in foreign currency Not allowed Fulfilled
Secured Debt/Gross Assets Max 20% 6%
37INCOME STATEMENT
Incom e Statem ent (EURm ) Jan- Dec Jan - Mar Jan - Mar
2020 2020 2021
Rental Revenues 684 172 178
Revenue Growth, % 3,8% -74,3% --
Operating Expenses (68) (19) (20)
Repairs and Maintenance Expenses (11) (3) (3)
Property Administration (34) (8) (8)
Property Tax (64) (16) (16)
Site Leaseholds 1) -- -- --
Net Operating Incom e 507 126 130
Surplus ratio, % 72,1% 73,0% 73,3%
Central Administration (12) (3) (3)
Profit from Joint Ventures and Associated Companies (21) (1) 2
Interest income 1 0 0
Interest expenses (110) (27) (26)
Site Leaseholds 1) (15) (4)
Profit Before Value Change and Tax 349 91 99
Change in Value of Investment Properties 106 (174) 160
Depreciation of land lease agreements (1) (0) (0)
Change in Value of Financial Instruments 16 65 26
Divested or Impaired Goodw ill -- -- --
Profit Before Tax 471 (18) 284
Current Tax (20) (6) (9)
Deferred Tax (88) 10 (49)
Profit from Assets Held for Sale -- -- --
Profit for the Period 363 (15) 226
Other Items (0) (0) (0)
Profit for the Period 363 (15) 226
1) Reclassificatio n in acco rdance with IFRS 16 Leasing
As of 31 March 2021. FX-rate EURSEK 10.24
38BALANCE SHEET
Balance Sheet (EURm ) Jan- Dec Jan - Mar Jan - Mar
2020 2020 2021
Intangible Assets 200 198 200
Investment Properties 15 861 15 181 16 096
Equipment 5 4 6
1)
Investment Properties, site leaseholds 504 513 504
Other Financial Receivables 270 311 228
Total Non-Current Assets 16 839 16 208 17 033
Current Receivables 121 187 245
Cash and Cash Equivalents 250 614 431
Total Current Assets 370 801 676
TOTAL ASSETS 17 210 17 009 17 709
Total Equity 6 921 6 837 7 147
Deferred Tax Liabilities 2 175 2 077 2 224
Debt, site leaseholds 1) -- -- 504
Interest-Bearing Debt 6 769 6 724 7 145
Non-Interest Bearing Liabilities 841 858 689
TOTAL EQUITY AND LIABILITES 17 210 17 009 17 709
1) Reclassificatio n in acco rdance with IFRS 16 Leasing
39
As of 31 March 2021. FX-rate EURSEK 10.24CASH FLOW STATEMENT
Cash Flow Statem ent (EURm ) Dec 31, 2018 Dec 31, 2019 Jan - Mar
Net operating incom e 507 126 130
Central administration (12) (3) (3)
Add back amortisation and depreciation 1 0 0
Adjustment for other non-cash items (1) (0) 0
Cash flow from operating activities before interest and tax 495 123 127
Interest Paid, Net (126) (37) (37)
Taxes Paid (assumed to equal current tax) (23) (14) (13)
Cash Flow Before Changes in Working Capital 346 72 78
Change in Net Working Capital 26 (31) (18)
Cash Flow From Operating Activities 373 41 60
Intangible assets -- -- --
Investments in Existing Property (519) (114) (92)
Net Acquisitions/Divestments 5 -- 18
Other PPE, Net (1) (0) (2)
Other Financial Assets (2) (0) --
Dividends from joint ventures 34 -- --
Cash Flow from Investing Activities (515) (115) (76)
Dividends and Group Contribution (293) -- --
Loans to Ow ner -- -- --
Change in Debt, Interest-Bearing Liabilities 432 311 267
Change in collateral (65) (41) (70)
Redemption of Financial Instruments (26) (7) 0
Cash Flow from Financing Activities 48 345 198
Cash Flow from the Period (93) 271 181
Opening Balance Cash and Cash Equivalents 343 343 250
Closing Balance Cash and Cash Equivalents 250 614 431
40
As of 31 March 2021. FX-rate EURSEK 10.24CASH FLOW FROM THE BUSINESS AFTER NET INVESTMENTS
500
400
300
200
100
EUR m
0
( 100)
( 200)
( 300)
( 400)
( 500)
( 600)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q1
R12
Cash flow from the business Net investments Cash flow after investing activities
41
As of 31 March 2021. FX-rate EURSEK 10.24YIELD DEVELOPMENT
Property yields offer attractive spread over government bonds in all Vasakronan’s key cities
7%
6%
5%
4%
3%
2%
1%
0%
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2
2017 Q4
2018 Q2
2018 Q4
2019 Q2
2019 Q4
2020 Q2
2020 Q4
-1%
Stockholm CBD Uppsala Inner City Gothenburg CBD Malmö CBD Swedish 10Y Gov Yield
Source: Cushman & Wakefield, Bloomberg. 42LONG TERM TARGETS
FINANCIAL
A total return of at least 6,5 percent per year
A total yield of at least 0.5 percentage points
higher than the industry*
All of our financing is green
ENVIRONMENTAL
Our entire value chain will be climate neutral by 2030
Our properties are self-sufficient and do not require any energy to be purchased
Our business and those of our customers generate no waste that is unable to be recycled or reused
We only use renewable, recycled or reused materials in our construction projects
SOCIAL
Everyone who works for Vasakronan has a good work environment free from worksite accidents
Our company and our suppliers are diverse and have an inclusive corporate culture
Our areas and properties are aesthetically pleasing and are designed to support:
– occupational health and safety
– health and well-being
– inclusivity for everyone
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