Carnegie Presentation March 15, 2016media2.andersjahlstrom.se/.../160315_Presentation... · Innovative Social activities •Local recruiting –50% of the staff live in the area •Immediate

Carnegie PresentationMarch 15, 2016

Byggmästare Anders J Ahlström Holding AB (publ)

PRESENTORS

1

Chairman Mikael Ahlström and Group CEO Mattias Tegefjord

Mikael Ahlström Mattias Tegefjord

Chairman

Founding chairman with financial and industrial experience

• 17 years of experience in infrastructure and property management

• Has held various positions within ISS Facility Services, KLP Fastigheter, John Mattson and Tyréns Temaplan

• 30 years of private equity and industry experience

• Founder and partner of the first Nordic private equity firm Procuritas

• Founder of the non profit organization Charity Rating and the Chelha foundation

Group CEO

CEO with long experience in property management as first hire

2

AGENDA

• GROUP OVERVIEW

• FINANCIAL POSITION

• VALUE ORIENTED BUSINESS MODEL

• VALUE CREATION INITIATIVES

• SHARE AND SHAREHOLDERS

OVERVIEW (1/2)

3

Long term value creation

To create substantial long term asset value appreciation by focusing on acquiring real estate, primarily in million program areas, as well as buying and building companies in related areas and manage these in

a socially opportunistic way creating wins for residents, clients, shareholders and the society alike

Values

• For shareholders – growth oriented company with strong fundamental business

• For residents – long-term and committed

• For society – contributing to the eco-system

• For clients – helping realize organizational change

Commitment

Our offering

Vision:

Innovation

Cooperation

OVERVIEW (2/2)

4

Prices have increased significantly since the bid for the property was made in June 2013

6,9 7,29,6

10,9

17,1

29,7

0

5

10

15

20

25

30

35

2013 Jun 2013 Dec 2014 Dec 2015 Dec Conversion2015 Dec

Co-op averageprices 2016 in

the area

SEK per sqm

Prices per square meter

1) Calculated as average price of sold co-op apartments in Alby, Fittja, Norsborg and Hallunda during 2016-01-01 – 2016-03-13 – excluding debt in the co-op association (“bostadsrättsföreningen”), source Booli

1)

EXECUTIVE SUMMARY

5

Low risk with significant value creation opportunities

Low risk – operational and financial Value creation opportunities

• Stable income and no vacancies

• Predictable costs

• Well established within the local community – both with residents and the municipality

• Strong value growth of the property

• Well capitalized top parent company, with shares listed on Nasdaq First North

• Real estate

– Conversion of 10,000 sqm

– Construction on 22,400 sqm building rights

– Renovations

– Acquisitions

• Developing consulting business

– Acquired in 2015

– Several expansion opportunities

BUSINESSES

6

The Group is active in two business segments

Structure Real estate business

• 107,000 sqm lettable area

• Located in Botkyrka municipality, south of Stockholm

• More than just bricks and mortar - actively working on building strong relations with residents

• Turnover SEK 101m, net operating margin 59%

Consulting business

• Providing strategic competence in the real estate industry

• Recruiting and interim staffing solutions

• Largest player in its segment

• Turnover SEK 77m, gross margin 32%

Byggmästare Anders J Ahlström Holding AB (publ)

Byggmästare Anders J Ahlström

Fastighets AB (publ)

JG Affärskonsult AB

Fasticon Kompetens Holding AB

Mitt Alby ABFasticon Kompetens

AB

100% 71%

100% 100%

29%

COMPANY SNAPSHOT

7

Acquires, develops and manages residential real estate as well as high potential companies related to the real estate industry

Company background Geographic presence

• The Company traces its roots back to 1895 when it was founded by the present Chairman's Great Grandfather

• Focus on large scale residential units constructed under the million program

Goals

Strategy

• Create value through socially responsible long-term management

• Establish the company as the leading Swedish socially oriented residential property owner and the leading supplier of competence in the industry

• Improve quality and increase cash flows

• Develop building rights and participate in construction projects

• Acquire additional properties in the million program as well as companies related to the industry

Mitt AlbyFasticon Kompetens

Botkyrka

GothenburgVäxjö

Stockholm

Malmö

KEY FIGURES

8

Quick facts about the Group

Financial figures 2015 (2014) Operational figures

1 property

1,302 rental apartments

24 buildings

107,000 sqm lettable area

720 three-bedroom apartments

79 sqm average apartment size

22,400 sqm building rights

1 résumé database

18,000 résumés in the database

No. 1 brand (“Fasticon”) in its industry

Group revenue, SEK m 151 (98)

Group operating cash flow, SEK m 33 (25)

Real estate revenue, SEK m 101 (98)

Real estate net operating margin, % 59.4 (61.5)

Loan-to-value, % 54.5 (64.3)

Interest coverage ratio 1.96 (1.65)

Solidity, % 41.7 (37.1)

Total property market value, SEK bn 1.2 (1.0)

Yield, % 5.4 (6.2)

Book value equity per share, SEK 81.79 (62.55)

Market value per share, SEK 75.75 (58.00)

MARKET OUTLOOK

9

Strong underlying markets for both the real estate and the consulting business

Real estate business

• High demand for both rental apartments and co-op’s in Sweden’s growth areas

• Limited residential construction

• Botkyrka municipality forecasted to have significantly higher population growth than Sweden in average

Stable and high demand, with potential for new construction

Consulting business

• Real estate, construction and related industries employ more than 500,000

• Growing recruiting and competence needs

– Housing construction, infrastructure projects, renovation of million program

– Demographic shift – retirements

– Increased focus on sustainability (social and environmental)

– Increased demands on professionalism2)

facing municipal real estate companies

Increasing demand for strategic competence providers, focused on the industry

1) Lagen om allmännyttiga kommunala bostadsaktiebolag (2010:879)

REAL ESTATE BUSINESS

10

Strong value increase with further potential

Value development (SEK m) Potential value growth

• Conversion to co-op’s, up to approx. 10,000 sqm –2,000 sqm signed end 2015

• Construction on the Company’s approx. 22,400 sqm building rights

• Renovations of vacant apartments and drainage (“stambyte”) will increase the value

• New acquisitions

701 731

980

1 110

40

75

701731

1 020

1 185

Jun 2013 Dec 2013 Dec 2014 Dec 2015

Building rights

Property

CONSULTING BUSINESS

11

Very strong historic development, now supported by more experienced and financially stronger owners

Financial development (SEK m) Potential value growth

• Growing core market

• New market presence

• Target segments outside of today’s focus on white collar middle management

• Strengthen and target new geographies

• Bolt-on acquisitions

27

48

60 58

75 77

13%12%

9%6%

10%

8%

0%

2%

4%

6%

8%

10%

12%

14%

0

10

20

30

40

50

60

70

80

90

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Revenue

EBIT, %

12

AGENDA

• GROUP OVERVIEW





FINANCIALS (1/3)

13

Growing revenue has been boosted by the Fasticon Kompetens acquisition in May 2015 – seasonality visible in net operating margin

Group revenue (SEK m) & Operating cash flow (SEK m) Real estate revenue (SEK m) & Net operating margin (%)

24,4 24,4 24,5 24,7 25,1

36,7

41,8

46,9

9,9

3,3

8,6

2,95,3

7,19,7 10,8

0

5

10

15

20

25

30

35

40

45

50

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

Revenue

Operating cash flow

24,4 24,4 24,5 24,7 25,1 25,2 25,3 25,7

48,5%

67,7%71,1%

58,7%55,3%

64,2% 65,0%

53,3%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

10

12

14

16

18

20

22

24

26

28

30

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

Revenue

Net operating margin

FINANCIALS (2/3)

14

LTV, ICR and solidity show an increasingly stable group – seasonality in ICR

Loan-to-value (%) Solidity (%)

92%

91%

65%

64%

64%

65%

64%

55%

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

Interest coverage ratio

1,14

1,71

2,17

1,67

1,61

2,10

2,41

1,80

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

13%

13%

30%

37%

37%

37%

37%

42%

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

FINANCIALS (3/3)

15

Decreasing yield and increasing share price, with discount to book value equity per share

Valuation (SEK m) & Yield (%) Book value & Market value per share (SEK)

62,55 62,82 63,4964,33

81,79

58,00

62,50

58,00

62,50

75,75

55

60

65

70

75

80

85

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4

Book value Market value

732 736

970 980 981 984 987

1 11039 40 40 40 40

75

6,5%

9,0%

7,2%6,0% 5,7%

6,6% 6,7%

5,0%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1 000

1 200

1 400

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

Building rights Property

Yield

16

AGENDA

• GROUP OVERVIEW





TIMELINE

17

The Company has come a long way since its re-inception in 2013

2013 2014 2015 2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Structure

Organi-zation

Projects

Acqui-sitions

Hiring of CEO Hiring of new operational head of Mitt Alby New CFO

Hiring of head of Projects

Taking over management of the property

Signing of first “ombildning”

Consulting business Fasticon Kompetens AB acquired

Negotiations, signing and closing

Listing of B-shares and share issue

LISTINGS

18

Share and bonds are listed on Nasdaq First North

• In December 2014 listed on Nasdaq First North in Stockholm

• In connection with the listing new shares were issued to capitalized the Group with SEK 114m

Byggmästare Anders J Ahlström Holding AB

Byggmästare Anders J Ahlström Fastighets AB

Short name: AJA B

ISIN: SE0006510491

Short name: AJAF 01

ISIN: SE0005504719

• In November 2013, a bond was issued and listed a bond on Nasdaq First North

• SEK 200m at 8% coupon

VALUE INCREASING ACTIVITIES

19

Achieved several changes targeting risk and yield reduction

Innovative Communication Innovative Management

• Proactive communication

• Easy access through local office

Increased feeling of ownership and being included

Innovative Social activities

• Local recruiting – 50% of the staff live in the area

• Immediate response to resident requests

• Energy usage optimization initiatives

• In-house operations (e.g. cleaning)

• Amnesty program – offered to “illegal” sub-tenants

Better kept and buildings and surroundings

Innovative Financing

• Financing structure built on three levels – equity, bond and bank loan

• Share issue and listing at Nasdaq First North

• Lower LTV

Significantly more stable financial position

• Several activities targeting youth at risk

• All playgrounds renovated

• Lighting project together with the municipality

Increased feeling of safety for residents

ONE ECO-SYSTEM

20

Social initiatives increase resident satisfaction and hence reduce risk and increase value also for the shareholders

On-going activities

Completed activities

Sports & spare time Community Youth & women Safety & well-being

“Huskurage”

“Alby Cricket”, local cricket club

“Botkyrka Kvinnoverksamhet”

Christmas lunch (yearly)Parkour at Cirkus Cirkör

“Konyaspor”, local football club

“DIT (Do It Together)” with Subtopia

“Pysselverkstan” with tenants association

“A Million Minds”

“Botkyrka natt-vandring” with X-Cons

Art in common spaces, with local organizations

Youth groups for non-Swedish speakers

“Pave the Way”

Alby parents association

Grindtorpsskolan

Kreativa fonden

Reflex campaign at Grindtorpsskolan

Refugee volunteers

“Giving people” – for households in need

Summer party

Anti-bullying campaign

“Alby-dagen”

“This is Alby” festival

Astroturf football field

Parkour at Cirkus Cirkör

“Nytt ljus på Albyberget”“Expedition Botkyrka”

Youth concert in Alby

Antiryktesbilagan –Södra Sidan

Anti-bullying campaign in Botkyrka

Youth groups for non-Swedish speakers

Kreativa fonden

BEFORE REAL ESTATE ACQUISITION

21

The Company started its existence with a lot of listening and some explaining

• Resident concerns about the divestment of the property by then owner AB Botkyrkabyggen

• Significant time and efforts to understand doubts and development needs – residents and other local stakeholders

• The major concerns were

– Luxury renovations beyond what is affordable?

– Not invest and let the property decay?

– Turn around and sell it for a quick profit?

• Also, to two main improvement areas became obvious

– Cleaning of buildings and surroundings

– Feeling of safety in certain parts of the area

? ?

MEDIA AND TESTIMONIALS

22

Both media reporting and positive feedback show that we are on the right path

Media coverage Positive feedback

Hej,Ville bara uttrycka glädje och tacksamhet. Vilket fantastiskt Initiativ med svartboendeamnesti! Hoppas fler hyresvärdar tar efter.

Rosor i stor bukett till miljövärden på Advokatbacken som kämpar dagligen med att hålla snyggt på vår gård. Kan inte ha det bättre som hyresgäst!

Tack för all feedback in har för alby cricket. Ja tillsammans kan vi göra vår Alby område ännu bättre :) Det bästa nyhet för Alby cricket är att det kom flera ungdomar till oss efter vår avslutning att de vill börja med oss. Alby har mycket ljus framtid i cricket och det är bara tack vara dig och hela Mitt Alby.

Hej.Ville bara tacka er för att ni var så engagerade och ringde så fort jag skickade en felanmälan. Ni kom ju samma dag och bytte duschblandare. Det har aldrig hänt förrut, när det var Botkyrkabyggen då fick man vänta i flera dagar tills de hörde av sig. Ni är ju jätteprofesionella och jag är jätteglad att ha er som fastighetsbolag här på Albyberget.Önskar er lycka till i framtiden.

Tack för ett jättegott och variabelt julbord! Det smakade verkligen

Felanmälan gjordes i förrgår på städning i trappor i p-däcket på Notariebacken 1.Redan nu ser det bra ut! Snabbt jobbat!

Mina chaufförer som tömmer grovsoprummen vill gärna framföra att era grovsoprum verkligen är i ordning och reda. Rummen är exemplariska, rent och snyggt. Vilket gör att det är en trevlig miljö för era boende, fastighetsskötare och även för SRV’s tömningspersonal.Tack för ett bra samarbete!

Hej!Måste bara säga att jag är grymt imponerad av er personal, var på visning idag, ringde kundcenter, laddar upp dokument på er sida – allt funkar riktigt bra och så springer man på ägaren som dessutom är ute och städar!Det är unikt! En stor eloge, jag hoppas att det uppmärksammas av alla boende i området – det tror jag att det gör!

Note: All senders of feedback have been anonymized and kept in the original wording (in Swedish)

FASTICON KOMPETENS

23

Fasticon Kompetens is a well established company with growth potential

• Turnover growing by 23% per year from 2009/2008 to SEK 77m in 2015/2014 – always with positive EBIT

• Fasticon Kompetens has a strong brand and is the largest player in its industry

• Large database with more than 18,000 résumés

• Offering

– Recruiting amounts to 25% and interim to 75% of sales

– Real estate business amounts to 70% and construction to 30% of sales

– Regional focus in the major population areas – offices in Stockholm, Gothenburg, Malmö and Växjö

DEAL RATIONALE

24

Three strong reasons for acquiring the Fasticon Kompetens

• Investment of approx. SEK 14m for 70% of Fasticon Kompetens

• Byggmästare Anders J Ahlström Holdings share of EBIT for the year 2015/2014 corresponds to SEK 4.2m

• Entrepreneurial CEO who built the company remains as CEO and is large shareholder

• Growing recruiting and competence needs

• Expanding core market and opportunities to enter new markets and segments

• Strong network access to the best people in its segment, which gives Mitt Alby great recruiting opportunities

• Ear to the ground for potential deals for Mitt Alby

Returns

Growth

Network

25

AGENDA

• GROUP OVERVIEW





REAL ESTATE BUSINESS

26

Several value creation initiatives are identified and targeted

• Conversion (”Ombildning”), i.e. conversion from rental apartments to co-op apartments (”bostadsrätter”)

• Renovation of the Mitt Albys property

• Construction

– Densification on the land and on the buildings owned by Mitt Alby

– New constructions on Albyberget

– Partaking in construction projects in the vicinity of Albyberget

• Acquisitions

3a

3b

3c

4

4

3

2

1

2

1

1. CONVERSION

27

Signing has been completed for the first conversion at Albyberget

• The purchase price amounts to SEK 35.5 million and thus exceeds the latest external valuation by SEK 12.6 million or 55% – corresponding to a value of 17 SEK per sqm

• The property comprises a total of 2,162 square meters, consisting of 27 apartments and four storage rooms

• After closing of the transaction – forecasted for May 2016 –further conversions are planned, provided there is interest from the residents

• The Company intends to convert another approx. 8 thousand sqm

• With these assumptions, a total cash of approx. SEK 170m would be released (not including any further value increase of the co-op’s and hence selling price) and value reduction of the property would amount to approx. SEK 110m

2. RENOVATIONS

28

Preparing for upcoming systematic renovations – both at vacancies and renovation of drainage

• Systematic renovation of vacant apartments will begin 2016

• Systematic renovations of drainage (“stambyte”) is set to start in 2017

– The frequency of water damage is the main indicator for when it is time to renovate the drainage

– Water damages today are at a stable and low level

– Methods for strain renovation and pipe replacement are investigated and tested on a small scale during 2016

• In preparation for upcoming renovations, a project manager has been hired to lead the work (he will also be responsible for new building construction)

• Renovation of vacant apartments and also systematic renovation of drainage will increase the value of the property

• Affärschef, Besqab Projekt och Fastigheter AB, February 2012 – January 2016 (3 years 11 months)

• Projektchef, Besqab Projekt och Fastigheter AB, August 2010 – February 2012 (1 year 7 months)

• Projektledare, Besqab Projekt och Fastigheter AB, August 2002 – August 2010 (8 years 1 month)

• Platschef, Besqab Projekt och Fastigheter AB, August 2001 – August 2002 (1 year 1 month)

• Platschef, NCCAugust 1996 – August 2001 (5 years 1 month)

• Started his career as a carpenter before studying to become a construction engineer (“byggnadsingenjör”)

Johan Areström

Project Manager

3. CONSTRUCTION

29

A significant amount of building rights (”byggrätter”) are part of the property

• The first phase of constructions on Albyberget is to be started in late 2016

• A series of meetings have been conducted with the municipality to find the right format for additional buildings and a dialogue with the residents is the next step – important to involve this target group for the new apartments

• The construction approach is to create a long-term attractive area with a wide range of apartment alternatives

A total of approx. 22 thousand sqm building rights have been externally valued at SEK 3.3 per sqm, a total value of SEK 75m

Sketch of future building; construction work is planned to start during 2016 at Albyberget

4. ACQUISITIONS

30

Open to new acquisitions – however very few value cases on the market

• The Company is open to further rental real estate acquisitions

• Primary interest is for real estate build as part of the million program, with focus on the south parts of Great Stockholm area

• Also other types of real estate and other parts of Sweden could be of interest if the right opportunity is developed or found

• The Company also evaluates add-on acquisitions which can add competence and experience to support the Group's existing business and which on a stand-alone basis in the long term can create value for the Group

Open for further acquisitions, but focus on developing the property on Albyberget given the current low yield transaction market conditions

CONSULTING BUSINESS

31

Value creation is possible in several areas, which are not mutually exclusive

Growing core market –middle management real estate professionals• Age related competence

turnover• Municipal real estate

companies experience growing demands on professionalism

New segments – target segments outside of today’s focus on white collar middle management• Top-management• Union contract staff

(”kollektivanställda”)

New industries and increase presence in industries with low penetration• Expand into other real estate

and construction related industries

• Gain market shares in construction

New geographies and increasemarket• Increase market shares in

south and west Sweden• Enter north Sweden

Acquisitions• Bolt-on acquisitions• On-going evaluation of

opportunities

SUMMARY

32

Several large scale initiatives for value creation

On-going process of screening potential acquisitions

Conversions of the Mitt Alby property

Renovations of the Mitt Alby property

Construction on building rights

Consulting business growth initiatives

First call of bond

Time

Val

ue

Note: Illustrative

33

AGENDA

• GROUP OVERVIEW





SHARE DATA

34

Average price and total volume per day

0

20 000

40 000

60 000

80 000

56,0

61,0

66,0

71,0

76,0

20

14

-12

-29

20

15

-01

-12

20

15

-01

-21

20

15

-01

-30

20

15

-02

-10

20

15

-02

-19

20

15

-03

-02

20

15

-03

-11

20

15

-03

-20

20

15

-03

-31

20

15

-04

-13

20

15

-04

-22

20

15

-05

-04

20

15

-05

-13

20

15

-05

-25

20

15

-06

-03

20

15

-06

-12

20

15

-06

-24

20

15

-07

-03

20

15

-07

-14

20

15

-07

-23

20

15

-08

-03

20

15

-08

-12

20

15

-08

-21

20

15

-09

-01

20

15

-09

-10

20

15

-09

-21

20

15

-09

-30

20

15

-10

-09

20

15

-10

-20

20

15

-10

-29

20

15

-11

-09

20

15

-11

-18

20

15

-11

-27

20

15

-12

-08

20

15

-12

-17

20

15

-12

-30

20

16

-01

-13

20

16

-01

-22

20

16

-02

-02

20

16

-02

-11

20

16

-02

-22

20

16

-03

-02

20

16

-03

-11

Volume (right) Average price (left) Issue price (left)

Highest price at SEK 84 on 2016-01-04

Lowest price at SEK 56 on 2015-01-15

SHAREHOLDERS

35

Founding owners all remain as large shareholders in the company

Mikael Ahlström (through Autus Invest AB)

• Founding partner Procuritas

• Founder of the non profit organization Charity Rating

• Founder of the Chelha foundation

Kari Stadigh (through Alesco SA)

• Group CEO Sampo

• Chairman of the board If Skadeförsäkring

• Board member Nordea and Nokia

Georg Ehrnrooth family (through Geveles AB)

• Large shareholdings in Caverion, Pöyry, YIT and other companies in Finnish industry

Carl Rosvall (through Hajskäret Invest)

• Founder of Monterro Fund

• Founder and previously CEO Protect Data

• Board member Itello and previously board member Orc Software and Protect Data

Martin Bjäringer (with family)

• Founder of Monterro Fund

• Board member Björn Borg, previously chairman of the board Protect Data and board member e.g. Gunnebo, Pricer

Shareholders and shareholding

0% 10% 20% 30% 40% 50%

Autus Invest AB

Alesco S.A.

Martin Bjäringer

Geveles AB

Hajskäret Invest AB

SEB

Humle Kapitalförvaltning AB

HTS Holding AB

Avanza Bank AB

Pareto Securities AB

Other

Shares

Votes

36

Q&A

37

APPENDIX

• FINANCIALS

• ABOUT THE COMPANY

• MARKET

PROFIT & LOSS

38

The consulting business Fasticon Kompetens AB was acquired in May 2015

Income Statement 2015-01-01 2014-01-01 2015-01-01 2014-01-01

(all figures in kSEK) 2015-12-31 2014-12-31 2015-12-31 2014-12-31

Real Estate Business

Rental income 101 270 98 019 101 270 98 019

Property costs -41 089 -37 743 -41 089 -37 743

Net operating income 60 181 60 276 60 181 60 276

Net operating margin, % 59,4% 61,5% 59,4% 61,5%

Consulting Business

Net Sales 49 337

Direct Costs -33 399

Net operating profit 15 938

Net operating profit, % 32,3%

Gross profit 76 119 60 276 60 181 60 276

Gross margin, % 50,5% 61,5% 59,4% 61,5%

Administration, acquisition and other costs -29 494 -12 571 -12 124 -11 158

Earnings before changes in value 46 625 47 705 48 057 49 118

Changes in value 153 636 267 881 153 635 267 881

EBIT 200 261 315 586 201 692 316 999

EBIT, % 133% 322% 199% 323%

Net interest -27 128 -31 812 -26 693 -31 811

Appropriations -8 000

Earnings before tax 173 133 283 774 166 999 285 188

Tax -38 399 -62 630 -36 742 -62 953

Profit for year 134 734 221 144 130 257 222 235


Holding AB (publ)



BALANCE SHEET

39

Significant real estate value increase during 2015

Balance sheet


Assets

Intangible fixed assets 25 735

Tangible fixed assets 1 190 370 1 025 197 1 189 941 1 025 197

Financial fixed assets 30 301 523 327 523

Deferred tax assets 1 620 2 647 1 219 985

Total fixed assets 1 248 026 1 028 367 1 191 487 1 026 705

Current assets 18 734 5 229 4 029 5 208

Cash 113 380 145 325 37 552 28 499

Total current assets 132 114 150 554 41 581 33 707

Total assets 1 380 140 1 178 921 1 233 068 1 060 412

Equity and liabilities

Equity 575 698 437 853 464 612 326 355

Bond 194 951 193 227 194 951 193 227

Long term interest bearing debt 433 472 441 620 433 472 441 620

Other long term debt 2 973

Deferred tax liabilities 108 993 69 301 106 235 69 301

Total long term liabilities 740 389 704 148 734 658 704 148

Short term interest bearing debt 24 420 9 300 9 300 9 300

Other short term debt 39 633 27 620 24 498 20 609

Total short term liabilities 64 053 36 920 33 798 29 909

Total equity and liabilities 1 380 140 1 178 921 1 233 068 1 060 412


Holding AB (publ)



CASH FLOW

40

Strong increase in operating cash flow after acquiring Fasticon Kompetens

Cash Flow Report 2015-01-01 2014-01-01 2015-01-01 2014-01-01


Operating cash flow 23 250 18 685 24 545 20 098

Changes in working capital 9 564 6 081 5 446 5 231

Cash flow from operations 32 814 24 766 29 991 25 329

Acqusitions -34 527

Cash from acqusitions 5 720

Investments in property -11 168 -10 462 -11 168 -10 462

Investments in inventory -526 -1 726 -470 -1 726

Investments in financial assets -30 000 -

Cash flow from investing -70 501 -12 188 -11 638 -12 188

Share issue 155 116 000

Capital injection from minority owners 2 956 -

New debt 19 701 -

Amortiziation -10 980 -9 300 -9 300 -9 300

Capitalized financing costs - -2 828 - -2 828

Capitalized share issue related costs -6 090 -

Cash flow from financing 5 742 103 872 -9 300 -12 128

Total cash flow -31 945 116 450 9 053 1 013

Cash at beginning of year 145 325 28 875 28 499 27 486

Cash at end of Year 113 380 145 325 37 552 28 499


Holding AB (publ)



41

APPENDIX

• FINANCIALS


• MARKET

ALBYBERGET (1/2)

42

Located in a dynamic municipality, close to nature, services and transportation

50

0 m

Highway E4

Elementary school

Kindergarten

Gas stationMunicipal and commercial

services

Large supermarkets

Subway

ALBYBERGET (2/2)

43

The property covers a significant area – almost comparable to entire city districts

WIN, WIN, WIN OPPORTUNITIES

44

Through social, operational and financial innovation, Mitt Alby is a role model for further acquisitions

• Through innovative communication, operations, financing and social initiatives, areas are further developed together with the residents

• Residents can enjoy an increasing attractiveness in their living environment and are also offered the opportunity to buy their apartment at an attractive price

• Residents interest in acquiring apartments is expected by the company to be high

• Financial stakeholders benefit from stable residential areas with value expansion potential

• By continuously increasing the attractiveness in the living environment, yield-requirements should decrease and property value increase further – which is beneficial for all stakeholders. Mitt Alby AB, owner the Group’s first residential property, is projected to be cash flow positive within the coming five years

• Many properties built as part of the Million Program are in need of renovations

• The transaction with the public property company in Botkyrka created increased financial resources for renovations in their remaining property portfolio

Win – Residents

Win – Owners & financiers

Win – Property sellers

COMPANY PILLARS

45

The business has been built on four pillars

Innovative Communication Innovative Management

• Proactive communication with residents and other local stakeholders

• Dialogue rather than one-way communication to understand the neighborhood

• Be clear with our plans and our approach and not over-promise

Innovative Social activities

• Organization and management with presence in the neighborhood

• Employ staff living in or close to the properties

• Sophisticated IT systems

Innovative Financing

• Financing structure built on three levels – equity, bond and bank loan

• Capitalization of holding company for flexible usage of funds

• Closed box structure below the holding company, with not reinvested capital going to financiers

• Providing office space for local initiatives and social entrepreneurs

• Supporting social initiatives through direct donations, investments and purchases from local organizations

PROPERTY SNAPSHOT

46

A low risk property with value increase potential

• The company owns the Mitt Alby property, located in Alby, ~20 km south-west of Stockholm city center

– 1,302 apartments distributed among 24 buildings

– The Mitt Alby property covers a total land area of 145,032 sqm, comparable to an entire district in the inner city

– The property was previously owned and responsibly managed by the public property company in the municipality, AB Botkyrkabyggen

• The Mitt Alby property and the business model are characterized by low risk

– No vacancies, save for such of technical nature

– Stable financial performance with regular increases in rent and a cost base which generally develops in line with inflation

– Low maintenance capex expected for the coming years

– Sale of apartments to housing co-ops are expected to release liquidity to future value adding investments

1 property

24 buildings

720 three-bedroom apartments

79 sqm average

apartment size

Quick facts

No. rental apartments 1,302

Total lettable area, sqm 107,000

Year of construction 1971-73

No. parking spaces 977

Building rights, sqm 22,400

Charlotte Bergman

Background: CEO of ELU Konsult, former CEO of AB Strängbetong, Head of department KF Fastigheter, previously different leading positions at NCC and Swerock

Board assignments: AB Strängbetong, CBI Betonginstitutet AB, Svensk Betong Service AB, Forsells Prefab AB and Tonful AB

Education: M.Sc. from Institute of Technology at Linköping University

Hidayet Tercan

Background: CEO and founder of Tjikko AB, entrepreneur, lecturer and debater, Founder of Zemrete

Board assignments: HTS Holding AB, Tjikko AB, Friends Foundation, Stockholms Stadsmission, member of jury EY Entreprenuer of The Year

Education: Courses in Business Administration at IFL, Stockholm School of Economics and several leadership courses

Lars Magnusson

Background: Former Director General at Statens Bostadskreditnämnd

Board assignments: AB Riddaregatan-Hee, AB, AB Livered 1:23 and Sturekatten AB

Education: M.Sc. from Royal Institute of Technology in Stockholm

Marcus Trummer

Background: Responsible for Ahlström family investments, former management consultant at Booz Allen Hamilton and banking at SEB, CEO Investmentbolaget av 1 maj 2009 AB, LBO Invest AB och PCTC Invest AB

Board assignments: LBO Invest AB, Autus Invest AB, Gosh AB and Caloroso s,r,o. Board alternate at Student Competitions AB and Fasticon Kompetens Holding AB


BOARD OF DIRECTORS

47

Directors with long experience and wide set of competences

Mikael Ahlström, chairman

Background: 30 years experience of private equity and business. Founding partner of Procuritas, the first private equity company in the Nordics. Founder of non profit organization Charity Rating and the Chelha

Foundation. Previously CEO of the North American company ESI Coal, Inc. Previous board assignments include, Swedish Match AB, Gunnebo AB, Bravida AB and Lekolar AB.

Board assignments: Procuritas AB, Spiltan Underhållning M AB, Gram Equipment AS, PCTC Invest AB and Stiftelsen Carl & Olga Milles Lidingöhem

Education: MBA from INSEAD and equivalent of a B.Sc. in Economics from Lunds University

Anders Hörnqvist

Background: CEO and partner at Corner Property Partners AB, Former head of Nordic Asset Management at Carlyle Group, previous deputy CEO at Fabege AB, head of Property at Wihlborgs Fastigheter AB

Board assignments: AB Norrlandsinvest, Capensor Capital AB, AH Företagskonsult


ADVISORY BOARD

48

Advisory board with in-depth knowledge of the area and the Million Program

Hans Lind is professor at KTH Royal Institute of Technology, Real estate and construction management, in Stockholm

Carlos Rojas is one of the founders and owners of Miklo, a consultancy company working with projects related to the Million Program

Erik Stenberg is an architect and teacher at the KTH School of Architecture in Stockholm

• He has been doing research and been published internationally in a number of real estate fields, e.g. housing markets, housing policy, property maintenance, property valuation and on construction contracts and construction productivity

• Lecturer in a number of courses, e.g. Economics of the Built Environment and Business Cycles in Real Estate and Construction Markets in the Bachelor and Master's program at KTH, but also in a number of courses for Doctoral Students

• Has a long standing interest in Million Program properties and hands-on experience on the topic

• Miklo develops recommendations for government organizations as well as companies through hands-on analyses

• Focus area for are the southern suburbs of Stockholm

• Founded Gringo, a magazine focusing on the Million Program

• Well-known debater and a much sought after speaker on topics relating to the Million Program

• Grew up in Botkyrka, close to Albyberget

• Former prefect at KTH School of Architecture

• During the last decade engaged in the politics of restructuring the Million Program in Sweden

• Has redesigned apartments, organized a housing fair, and started an introductory architecture school in Tensta, one of Stockholm's largest Million Program areas

49

APPENDIX


• FINANCIALS

• MARKET

SWEDISH REAL ESTATE MARKET

50

A strong economy and a rapidly growing population are positive factors for real estate investments

• The real estate sector is in general driven by macroeconomic factors such as GDP development and population development

• The Swedish economy has grown steadily over the last decade, except for a small setback during the global financial crisis in 2008-2009

– The regional GDP in Stockholm County has grown significantly faster than the national average

• The population of Sweden in general and Botkyrka municipality in particular has grown significantly during the last 10 years, and is expected to increase further going forward

– Total growth of Botkyrka Municipality’s population since 2003 has amounted to ~19%

– Corresponding growth of the Swedish population amounted to 7%

• The population of Stockholm County is expected to increase with ~305,000 inhabitants from the current level by 2022

– The current population in Botkyrka municipality amounts to 89,400 inhabitants, and is expected to increase to ~100,400 by 2022, corresponding to a growth of ~17% from the current level

Indexed nominal GDP development, 100%: 2003

Indexed population development, 100%: 2003

Sources: Statistics Sweden, Swedish Riksbank, maklarstatistik.se, Länsstyrelsen Stockholm, Stockholm Chamber of Commerce

90

100

110

120

130

140

150

160

170

180

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sweden Stockholm County

90

100

110

120

130

140

150

2003 2005 2007 2009 2011 2013 2015 2017F 2019F 2021F 2023F

Sweden Botkyrka municipality

ABOUT BOTKYRKA

51

Beneficial location close to Stockholm drives demand for residential apartments

• Botkyrka municipality is located in the south-western part of the Stockholm region, ~20 km from the city center

– Well accessible by public transportation

– The highway E4 passes through the municipality

• The municipality is characterized by urban areas combined with closeness to nature

– The urban areas in northern Botkyrka are characterized by residential apartments within Million Program properties that were built during the 1960s/1970s

– ~1/3 of Botkyrka’s population lives in apartments managed by the public property company AB Botkyrkabyggen

• Over the last 20 years, population in the municipality has increased by ~27% while the total supply of residences has only increased by 14%

– In 1995, an average of 2.3 persons lived in each apartment. In 2014, the number had increased to 2.6

– Thus, the residences have become more densely populated

• Stockholm county’s shortage of residential units amounted to ~80,000 units in 2014, according to the municipalities in the county

Location in the Stockholm region

Number of residences and persons per apartment (Botkyrka municipality)

Location of the property

Sources: Botkyrka municipality, AB Botkyrkabyggen, Statistics Sweden, Stockholm County Administrative Board

2,3

2,4

2,4

2,5

2,5

2,6

2,6

2,7

2,7

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Other Single family houses

Apartments Persons per housing unit

RESIDENTIAL MARKET IN BOTKYRKA

52

Longer queuing times despite historical rent growth well above inflation

• Average rent levels in Alby have increased with an annual growth rate of ~2.4% over the last 8 years

– Total growth over the period amounts to 21%

– Over the same period, CPI has increased with 11%

– Annual rent growth above inflation averages 1.3% over the 8-year period

• The majority of rental apartments in Botkyrka are managed by the public property company AB Botkyrkabyggen

– AB Botkyrkabyggen manages ~10,600 apartments in the municipality, and has the last years reported 100% occupancy

– Average time an applicant must queue in Stockholm’s residential queue before receipt of a AB Botkyrkabyggen-apartment is 6-7 years, compared to 7.7 years for the entire Stockholm region

• Since 1996, housing co-op apartment prices in Botkyrka have increased by ~1,790% (Stockholm ~555%, Sweden ~595%)

Indexed housing co-op pricesQueuing time Stockholm residentialIndexed rent levels in Alby

4,35,2

6,27,0

6,05,7

6,9 7,27,7 7,7

0,0

2,0

4,0

6,0

8,0

10,0

2010 2011 2012 2013 2014

Years Botkyrkabyggen Total

95

100

105

110

115

120

125

2006 2007 2008 2009 2010 2011 2012 2013 2014

Indexed rent level, Alby

Indexed inflation

Sources: AB Botkyrkabyggen, Newsec, Statistics Sweden, Svensk Mäklarstatistik

0

500

1 000

1 500

2 000

1996199820002002200420062008201020122014

Sweden

Stockholm County

Botkyrka municipality

Documents

Carnegie Presentation March 15, 2016media2.andersjahlstrom.se/.../160315_Presentation... · Innovative Social activities •Local recruiting –50% of the staff live in the area •Immediate