2. Our market 3. Our operations 4. Financials 5. Financing - - PowerPoint PPT Presentation

• 1. About us
• 2. Our market
• 3. Our operations
• 4. Financials
• 5. Financing strategy
• 6. Commercial paper programme
• 7. Summary

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Joachim Hallengren, CEO CEO of NCC Housing 2012–2016 and a total of 16 years’ experience of a range

• f positions in the NCC Group, including

Business Area Manager of NCC Property Development and member of the senior management of NCC AB (publ). Shareholding in Bonava AB: 10,000 series A shares and 46,894 series B shares. Ann-Sofi Danielsson, CFO CFO, Financial Director and a total of 13 years’ experience as a member of NCC AB’s senior management. Shareholding in Bonava AB: 14,144 series B shares.

Develops and sells affordable homes to private customers and investors Broad geographic presence Net sales of SEK 13.5 bn and EBIT of SEK 1.5 bn in 2016 Over 1,600 employees

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Broad geographic presence Diversified offering Focus on affordable Strong market positions Strong financial position

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2009 2016 2013- 2015 1997

Strong anchor holder (Nordstjernan) Ten largest owners combined owns close to 60 per cent of the total outstanding shares

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As of 31 August

Ten largest owners Holding (%)

Nordstjernan 18.7 AMF – Försäkring och fonder 9.7 Swedbank Robur fonder 7.2 SEB Investment Management 4.9 Lannebo 4.9 Fjärde AP-fonden 3.8 Carnegie fonder 2.8 Länsförsäkingar fondförvaltning 2.6 Handelsbanken fonder 2.3 Norges Bank 2.1

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Investments in housing development in Europe 2014 (BNEUR)

Sweden 5 Germany 47 Finland 5 Denmark 2 Norway 8 Rest of Europe 181

EUR ~67bn market expected to grow with an annual rate of 4% until 2018

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GDP

90 100 110 120 130 140 150 160 170 180 190 2005 2007 2009 2011 2013 2015 2017e 90 100 110 120 130 140 150 160 170 180 190 2005 2007 2009 2011 2013 2015 2017e 90 100 110 120 130 2005 2007 2009 2011 2013 2015 2017e

Employment Disposable income

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Population Degree of urbanisation

90 95 100 105 110 115 2005 2007 2009 2011 2013 2015 2017e

60% 65% 70% 75% 80% 85% 90% 95% Sweden Germany Finland Denmark Norway Russia Estonia Latvia 2015 2020 2050

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% Share of net sales as of Q2 2017 R12

Sweden Denmark and Norway Germany

• St. Petersburg

Finland Estonia and Latvia 40% 12% 31% 1% 5% 11%

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Customer segments Product types Consumers (70%) Investors (30%)

Margins vs. Risk Volume vs. Speed

Multi-family houses Single-family houses

Project profitability

• 5. Customer service
• 4. Project execution

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Sales start Production start Hand over

• 2. Project development (design and

planning)

• 1. Land purchase

Accessing land

• 3. Marketing and sales

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Uppsala Stockholm Gothenburg Linköping Umeå

Consumers

Consumer operations focused on Stockholm, Gothenburg, Linköping, Uppsala and Umeå ~15 cities identified Both multi-family and single-family houses

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Customers

Consumers and investors in 8 regions Both multi-family and single-family houses

Rhine-Ruhr Cologne/Bonn Rhine-Main Rhine-Neckar/Stuttgart Berlin Sachsen Baltic Sea Hamburg

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Processes & systems Operating model Winning culture and people focus Differentiation Design & production Procurement Geographic footprint

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DE SE

• 43%

FI 11,200 9,700 7,900 1,600

• 26%
• 37%

2,800 3,400 7,200 +132% 7,100 2017 Q2 2013

• No. of building rights

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Q2 2017 R12 14.0% 6.8% 10.5% 10,226 2015 13,070 2014 2013 9,196 9.2% 11.6% 2016 13,492 15,201 Net sales, SEK M EBIT margin

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Q2 2017 R12 22.1% 6,009 3,018 7.6% 2,409 13.8% 2013 18.3% 5,040 15.2% 2015 4,639 2016 2014 Net sales, SEK M EBIT margin

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3,471 3,907 12.2% 2015 2016 9.1% 12.1% 2,508 2013 3,170 Q2 2017 R12 4,747 2014 10.3% 12.7% EBIT margin Net sales, SEK M

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5.3 3.2 1.0 1.4 3.7 3.5 Q1 2016 1.0 Q4 2015 4.6 4.2 0.5 Q4 2016 0.9 Q1 2017 4.3 3.7 3.6 5.2 Q2 2016 4.8 0.1 Q3 2016 4.3 5.1 4.3 1.0 Q2 2017 Net debt, SEK BN

Net debt to tenant-owners associations/housing companies Other net debt

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Q1 2017 Q1 2015 Q4 Q2 Q2 Q3 Q3 Q4 Q1 2016 Q2 Cash flow before financing

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16,7 Q3 2016 Q2 2016 Q4 2015 15.5 17,9 18,4 Q1 2016 Q1 2017

Completed housing units Other assets Housing units in production

18,5 Q4 2016 16,8 Q2 2017 18,9

Properties held for future development

SEK BN

More than 30 percent of the business to be financed by equity Diversification of funding sources

• Term loans from Svensk Exportkredit, 30+30 MEUR
• Project loans from banks, SEK 4.4 bn as of 30 June 2017
• Revolving credit facility of SEK 2.7 bn, to be used as back-up facility for CP programme
• Capital market financing through CP will replace part of other debt

Floating interest rates, that may be hedged with interest rate swaps

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Type of loan Amount Maturity date Interest base Utilized amount Unused amount Term loan MEUR 30 2020-06-09 Floating MEUR 30

• Revolving

Credit Facility MSEK 2,700 2021-04-28 Floating MSEK 538 MSEK 2,162 Term loan MEUR 30 2021-06-09 Floating MEUR 30

• *Debt related to Finnish housing companies and Swedish tenant-owner association

Project financing Amount Average tenor Interest base Utilized amount Unused amount Brf/BAB*) n/a 20 months Floating MSEK 4,410 n/a

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Issuer Bonava AB Amount 2.0 bn SEK Arranger SEB IPA Handelsbanken Issuing banks Danske Bank, Handelsbanken, SEB and Swedbank Terms Yield level Tbd First issuance October 2017 Tenor 1-9 months Seasonal pattern CP issuance likely to be lower in the end of Q4 due to strong cash flows, and increased issuance during Q1 – Q3

Broad geographic presence Diversified offering Focus on affordable Strong financial position

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