Q2_2019_2020 Nivika_Presentation_ver_2,0

Nivika Fastigheter AB

Q2 Presentation

TC – 28 April 2020

Today’s presenters

Niclas Bergman, CEO,


niclas@nivika.se

Tel. 0770-22 01 51

Dan Carlsson, Property manager,


dan@nivika.se

Tel. 0770-22 01 59

Kristina Karlsson, CFO,


kristina@nivika.se

Tel. 0770-22 01 71

| 2

AGENDA

1. Nivika in a nutshell

2. Market update

3. Nivika going forward

4. Financial development

5. Appendix

| 3

Nivika – in brief - a property company in Småland

40%

30%

20%

10%

0%

250

200

150

Equity ratio

29%

36% 35%

Rental Income, MSEK

31%

33%

191

37%

15/16 16/17 17/18 18/19 19/20 Q1 19/20 Q2

210

Per 29 February 2020, the property

portfolio is valued at SEK 3,9bn and

consists of +70 properties with the

following key facts:

§ Yearly rental income about SEK 225m

§ Net LTV 51%

§ Interest coverage ratio 1,9x

§ Economic occupancy commercial

properties 96%

§ Economic occupancy rental

apartments 99%

100

50

0

73 84

121

135

14/15 15/16 16/17 18/18 18/19 Q2 19/2 0

R12

Property value per category

Property value per region

5 000

Property value, MSEK

4 000

3 000

3 512

3 920

2 000

2 748

2 006

1 000 1 587

0

2016-08-31 2017-08-31 2018-08-31 2019-08-31 2020-02-29

2%

5% 4%

9%

14%

30%

36%

Residential

Industry

Office

Retail

Municipality

Hotel/Rest.

Other

37%

5% 1%

57%

Jönköping

Värnamo

Växjö

Other

Based on Q2 numbers ending the 29 th of February 2020

| 4

Our employees are the core in our business

Employees

Nivika's most important resource is our employees. Having

competent, dedicated and prosperous employees are what drives

the business going forward. We want to provide them the same

commitment.

Nivika should be a safe workplace for our employees, a place

where they can develop and be stimulated.

Employees, gender distribution

Men

24%

Women

76%

Employees, age distribution

32%

3%

5% 0-19

10%

20-29

30-39

29% 40-49

50-59

60-

21%

Glädje Engagemang Ärlighet Miljöansvar

Number of employees

40

35

30

25

20

15

10

5

0

2015 2016 2017 2018 2019 Feb 2020

| 5

Nivika property portfolio ~SEK 5 B after Alhansa acquisition

Aquisition of Alhansa

Fastigheter

(1st of April 2020)

• Diversified portfolio, and aiming for 50% of residential

properties

• Local presence, having a competitive advantage through

closeness to market, customers and important

stakeholders

• Existing project/development portfolio, to ensure

growth, short term and long term opportunities already

in place

• Sustainability and green thinking in existing portfolio

and in building to continue to attract tenants and

sustain the high occupation rates

• Broadened owner base and strong balance sheet,

thanks to the SEK400m rights issue that was carried out

in December 2019

| 6

AGENDA


2. Market update



5. Appendix

| 7

Market update in short

Jönköping, Värnamo & Växjö - Overview residential and commercial

Commercial

Jönköping

• There’s still a demand for modern offices in Jönköping. Stigamo, an

industrial area south of Jönköping along the E4, where Nivika has land

for future expansion, is the industrial area that currently has available

land for major new establishments in Jönköping municipality

Värnamo

• Värnamo's industrial area, Bredasten, along the E4, is growing and

several companies are currently developing the area. For the growth of

Värnamo municipality and for Nivika, this is positive

• In January 2020, Nivika completed a new logistics facility of 10 000

square meters as well as a motorhome center with the best location

along the E4

Växjö

• Several projects with Växjö Kommun as initiator, are already in

production, such as the construction of a new city hall, a new central

station and a transformation of the old city hall to residences

• In connection to Småland Airport, a new commercial area (Nylanda) is in

production where Växjö Municipality has also acquired land which is to

be developed into a new commercial area

• All properties in the acquisition of Alhansa are located within the Växjö

industrial area of Väster and Norremark. These area include companies

with business to business operations. The acquisition gives us a stable

platform and the opportunity to develop our portfolio in Växjö, given

the natural contacts with tenants

Residential

Jönköping

• Housing shortage in Jönköping has resulted in intensified development and

production of residential properties during 2017-2019

• The production of new housing properties has not been able to keep pace

with the growing population and demand, which has led to increased

demand between different social groups/price segments

• Nivika’s ongoing projects are Västergöken, Vombaten and Vråken, and the

Valplatsen area with 194 apartments is under construction

• Total number of apartments for Nivika, ongoing and under construction in

2020, app. 400 rental apartments. For app. 250 of these, applications for

government financial support for student housing and rental apartments are

made.

Värnamo

• Värnamo’s population is forecasted to grow from 34 425 in 2018 to +38 000

in 2028

• A goal for the municipality is to have a higher and more stable level of

apartments under construction

• Nivika is awaiting construction permits for 125 rental apartments centrally

located in Värnamo. Scheduled start of construction in autumn 2020

Växjö

• Växjö is expected to achieve strong population growth in the next coming

years and the demand for housing increases

• Nivika's housing construction, which is planned and under construction in

2020-2022, amounts to app. 330 apartments in the Arena area, Snowflake

area and Växjö University area

| 8

Växjö - Alhansa

Aquisition of Alhansa Fastigheter AB in Växjö

Strategic acquisition

The acquisition of Alhansa is an important strategic acquisition which

means a strong foothold in Växjö. An important establishment of a

local property management organization, which, in addition also will

manage existing properties and upcoming rental properties that are

under construction.

Property portfolio Alhansa

• Properties mainly situated in industrial area ”Väster” in

Växjö

• 21 commercial properties

• B2B-business

• App. 72 000 sqm

Tenants Alhansa

• App. 150 tenants in the property portfolio

• Top 10 contracts stands for app. 40% of contracted annual

rent. Where of Växjö Kommun is the largest tenant

Alhansa, Top 10 contracts

Alhansa, property value per premises

type

5% 5% Residential

Industry

Municipality

20%

Office

Retail

68% Hotel/Rest.

Other

Property value Nivika, incl. Alhansa*, per

premises type

8%

13%

4% 2%

8%

36%

30%

Residential

Industry

Office

Municipality

Hotel/Rest.

Retail

Other

Property value Nivika, incl. Alhansa*, per

region

21% 1% Jönköping

31%

47%

Värnamo

Växjö

Other

* Property value per 20-02-29 and property value Alhansa portfolio

| 9

Nivika – stands firm although the Covid-19 situation

Stable profit for the first half year. Future impact of the coronavirus pandemic is difficult to assess

• Strong Balance sheet and good liquidity

Nivika has a strong balance sheet and good liquidity thanks to the SEK400m rights issue that was

carried out in December 2019.

• Tenant diversification

Nivika has a diversified tenant structure, where of 30% is residential and 9% municipality, which is

less impacted and only 9% is retail and 4% is hotel and restaurants. (Figures including the Alhansa

portfolio.)

• Only postponement on rental payment granted so far (April 24 th )

Until now Nivika has only granted deferral with half the rent of April for a small number of

tenants within the hotel, restaurant and retail branch. No discounts are decided yet.

• Individual assessments will be made for tenants asking for rental relief

Any subsequent rental discount will be individually assessed and decided from a 2-3 years a

business perspective.

• Buildings under construction

Nivika has yet no operational disruption or delays in the ongoing building projects, all

constructions are according to plan.

It is difficult to predict what will happen in the long term, as no one knows how

long this pandemic will last, or how long and deep any recession might be.

| 10

AGENDA


2. Market update



5. Appendix

| 11

3 rental apartment projects ongoing in Kungsängen, Jönköping

Västergöken 1,

Kungsängen, Jönköping

89 rental apartments

Under construction

Expected completed spring

2021

Estimated budget: SEK 219m

Vråken 1, Kungsängen,

Jönköping

66 rental apartments in step 1

Under construction

Expected completed spring 2021


Vombaten 2 & Vråken 2


Under construction

Expected completed spring

2021


| 12

Rental apartment projects ongoing in Jönköping and Växjö

Valplatsen, Jönköping

194 student apartments

Building permit documents are clear

Construction starts in May 2020

Expected completed, step 1, spring

2021

The project is eligible for government

financial support of SEK 65m

Estimated budget: SEK 170m, bank

financing approved

Snöflingan 16, Växjö


Under construction

Expected completed spring 2021


| 13

Mainly rental apartments projects 6-24 months ahead

Stenladan, Växjö

95 student apartments on Campus

The project is eligible for government

financial support

Construction are planned to start in

2021


Nivika Center, Arena Area Växjö

160 small rental apartments, 5 600 sqm

Sports arenas and restaurant for Växjö Vipers

2 400 sqm

Building permits in their final stages


Sadelmakaren Värnamo

Strategic area in Värnamo

About 120 apartments

Construction are planned to start in 2021


| 14

AGENDA


2. Market update



5. Appendix

| 15

Financial performance

Income Statement

Comments

Rental income SEK 111,3m (91,7) +21%

The increase in rental income was mainly due to acquisitions and completion of

properties:

Nivika Compact Living, Dec 2018, SEK +6m

Nivika Operan, Sep 2019, SEK +4,2m

Nivika Sandstenen (Diabasen), Nov 2019, SEK +3,9m

EBITDA SEK 60,4m (53,1) +14%

EBITDA increased compared to last year, but with a slightly lower margin. This is mainly

due the cost of increased personnel building a new fully internal property management

organisation, from 30 to 38 employees within the last 12 months

Financial costs SEK 31,6m (17,4) +82%

Higher financial costs due to high cost for the bond, issued in Nov 2018, SEK 250m and

additional SEK +220m in May 2019

Change in investment properties, unrealised SEK 134,3m (132,8)

Mainly due to Q1 change in yield requirement, SEK 55m and improvements and index

adjustments in existing portfolio, SEK 53m. Change in Q2 only +18,6m


Please note, financials for 2017, 2018 and 2019 are prepared in accordance with IFRS while 2015 and 2016 are prepared in line with Swedish GAAP (K3)

| 16

Financial performance

Rental income and Net operating income

Capital Structure

SEKm

250

200

150

100

50

Rental income, (LHS) Net operating income, % (RHS)

82% 83%

69% 71%

67%

191

121,3

135

84

70

210

66%

100%

80%

60%

40%

20%

Bank loans Bond Equity Deferred tax Other

2%

8%

45%

33%

0

14/15 15/16 16/17 17/18 18/19 Q2 19/2 0 R12

0%

12%

Loan-To-Value and Interest Coverage Ratio

Property Value and LTV

60% 5,6x

ICR* Net LTV

58%

4,2x

58%

3,6x 3,6x

56%

57%

56%

2,5x

54%

55%

1,9x

54%

52%

51%

50%

14/15 15/16 16/17 17/18 18/19 Q2 2019/ 20

* ICR = Interest Coverage Ratio

6,0x

5,0x

4,0x

3,0x

2,0x

1,0x

0,0x

SEKm

4 500

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

Property value, SEKm (LHS) Net Loan-to-value, % (RHS)

58%

56%

57% 3 920

54%

55%

3 512

2 748

51%

1 587 2 006

1 008

2015-08-31 2016-08-31 2017-08-31 2018-08-31 2019-08-31 2020-02-29

60%

58%

56%

54%

52%

50%


Please note, financials for 2017, 2018 and 2019 are prepared in accordance with IFRS while 2015 and 2016 are prepared in line with Swedish GAAP (K3)

| 17

THANK YOU FOR LISTENING!

QUESTIONS?

www.nivika.se

| 18

AGENDA


2. Market update



5. Appendix

| 19

+70 properties in 3 cities

Rental apartments • Operan • Jönköping

Commercial areas and rental apartments • Advokaten

5 & 14 • Jönköping

Brenderup Group • Stigamo 1:31 • Jönköping

Commercial properties • Valplatsen • Jönköping

Rental apartments • Bautastenen 1 • Värnamo

Wemo • Sandstenen 4 • Värnamo

Commercial properties and rental apartments

Tre Liljor 17 • Värnamo

Rasta • Sandstenen Graniten • Värnamo

Commercial properties • Sågaren 3 • Växjö

Bil Månsson• Sandstenen 2 • Värnamo

Commercial properties and rental apartments •

Kärleken 3 • Värnamo

Commercial properties • 1337 • Bredasten Värnamo

| 20

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