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INVESTOR PRESENTATION DISCLAIMER IMPORTANT:YOU MUST READ THE FOLLOWINGBEFORE CONTINUING. The following applies to the presentation materials contained in this document, and you are therefore advised to read this carefully before reading, accessing


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INVESTOR PRESENTATION

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DISCLAIMER

IMPORTANT:YOU MUST READ THE FOLLOWINGBEFORE CONTINUING. The following applies to the presentation materials contained in this document, and you are therefore advised to read this carefully before reading, accessing or making any other use of the presentation materials. In accessing the presentation, you agree to be bound by the following terms and conditions, including any modifications to them any time you receive any information from us as a result of such access. This presentation is an advertisement for the purposes of Directive 2003/71/EC (as amended) and not a prospectus, listing particulars or offering memorandum. 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 retained by the Company. These materials are provided for information purposes only and do not constitute, or form part of, and should not be construed as, any offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of, or any solicitation of any offer to underwrite, subscribe for or otherwise acquire or dispose of, any debt or other securities of the Company (“securities”) and are not intended to provide the basis for any credit or any other third party evaluation of securities. If any such offer or invitation is made, it will be done so pursuant to separate and distinct documentation in the form of a prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made solely on the basis of such prospectus and not these materials. No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorised by or

  • n behalf of the Company.

These materials should not be considered as a recommendation that any investor should subscribe for or purchase any securities. Any person who subsequently acquires securities must rely solely on the final prospectus published by the Company in connection with such securities, on the basis of which alone purchases of or subscription for such securities should be made. In particular, investors should pay special attention to any sections of the final prospectus describing any risk factors. The merits or suitability of any securities or any transaction described in these materials to a particular person’s situation should be independently determined by such person. These materials offer no investment, financial, legal, tax or any other type of advice to, and the Company has no fiduciary duties towards, any recipients and therefore any such determination should involve, inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities or such transaction. These materials may contain certain statements that constitute projections and forward looking statements. Such forward-looking statements may include, without limitation, statements relating to the Company’s business strategies, trends in its business, competition and competitive advantage, regulatory changes, and restructuring plans. Words such as believes, expects, projects, anticipates, seeks, estimates, intends, plans or similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Any such forward-looking statements involve known and unknown risks, uncertainties and other factors, both general and specific, which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Investors may get back less than they invested. The Company gives no assurance that any favourable scenarios described are likely to happen, that it is possible to trade on the terms described herein or that any potential returns illustrated can be achieved. Further, any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. A number of important factors could cause actual results, performance or achievements to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward- looking statements. Any such forward-looking statements in these materials will speak only as at the date of these materials. The Company does not intend to update these forward-looking statements except as may be required by applicablesecurities laws and assumes no obligation to update or provide any additional information in relation to such forward-looking statements. The Company makes no representation nor gives any warranty as to the results to be obtained from any investment, strategy or transaction, nor as to whether any strategy, security or transaction discussed herein may be suitable for recipients’ financial needs, circumstances or requirements. Recipients must make their own assessment of such strategies, securities and/or potential transactions detailed herein, using such professional advisers as they may require. No liability is accepted for any direct or consequential losses arising from any action taken in connection with or reliance on the information contained in these materials even where advised

  • f the possibility of such losses.

These materials are confidential, are being made available to selected recipients only and are solely for the information of such recipients. These materials must not be reproduced (in whole or in part), redistributed or passed on to any other person or published, in whole or in part, for any purpose without the prior written consent of the Company. The information contained in this presentation has not been subject to any independent audit or review. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials (a) are not intended for distribution and may not be distributed in the United States or to U.S. persons (as defined in Regulation S) under the United States Securities Act of 1933, as amended and (b) are for distribution in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order (“Relevant Persons”). The presentation is directed only at relevant persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This presentation may only be communicated to persons in the UK in circumstances where section 21(1) of the Financial Services and Markets Act 2000 does not apply to the Company. These materials are not intended for Retail Clients as defined in Directive 2014/65/EU on markets in financial instruments (MiFID II) and should not be passed on to any such persons.

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1. Vasakronan Overview 5 2. Business Description 10 3. Swedish Real Estate Market Overview 19 4. Financials 25 5. Funding 31 6. Appendix 37

AGENDA

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SLIDE 4

1. VASAKRONAN OVERVIEW

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SLIDE 5

VASAKRONAN IN BRIEF

Vasakronan owns, develops and manages office properties in Sweden

As of 30 September 2019.FX-rate EURSEK 10,72

Contracted Rent by Geographic Market Contracted Rent by Property Type Stockholm Gothenburg Malmö Uppsala

  • Market value

EUR 14 bn

  • Total area (thousand) 2,300 sqm
  • Contracted rent

EUR 658 m

  • Number of properties

173

  • Number of employees

309

64% 18% 10% 8% Stockholm Gothenburg Malmö Uppsala

  • Largest Swedish real estate

company

  • Modern and high quality portfolio

in prime locations

  • Strong and committed long-term
  • wners

74% 19% 7% Offices Retail Other - hotel, residential and parking

5

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LARGE REAL ESTATE COMPANIES IN THE NORDICS

Investment property value EURbn

Source: Annual report of each of the companies above for the year 2018.

A3 BBB/ Baa3 Baa2 NR Baa2 A- A- Baa2 BBB-/ Baa3 Baa1 Baa3 BBB- AA- Baa2 BBB

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SLIDE 7

Issues the world’s first Corporate green bond

TIMELINE & KEY EVENTS

Consistent growth over a period of two decades. Focus on markets with high growth and liquidity.

1,9 7,1 6,8 7,3 7,8 8,0 8,3 8,7 9,8 11,0 12,0 13,2 13,7 2 4 6 8 10 12 14 16 1998 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 Market value EUR bn

CAGR 2008-2018: 9 %

AP Fastigheter established by the AP-funds AP Fastigheter acquires Vasakronan EUR 4 bn and divest properties to Niam for EUR 0,7 bn Further focus on commercial properties. Divestment of a portfolio of residential properties for EUR 0,7 bn Acquisition of commercial properties in Gothenburg for EUR 0,5 bn Rating assigned by Moody’s –A3. Issues the world’s first green CP

Continously improved quality in the portfolio through transactions and project development amounting to EUR 0.2-0.3 bn per annum Continously improved quality in the portfolio through transactions and project development amounting to EUR 0.2-0.3 bn per annum

7

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SLIDE 8

THE AP-FUNDS ROLE IN THE SWEDISH PENSION SYSTEM

Vasakronan is the Swedish National Pension Funds´ main exposure to the Nordic office market

PARLIAMENT PARLIAMENT MINISTRY OF FINANCE MINISTRY OF FINANCE VASAKRONAN HOLDING VASAKRONAN HOLDING VASAKRONAN VASAKRONAN SWEDISH NATIONAL PENSION FUND LAW SWEDISH NATIONAL PENSION FUND LAW EXTERNAL AUDITORS EXTERNAL AUDITORS

25 % 25 % 25 % 25 % 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 1,7 bn and CoC-clause in all funding

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SLIDE 9

ASSIGNED A3 (STABLE) RATING BY MOODY’S

“Largest real estate company by asset value in the Nordics with a dominant position in Sweden’s most attractive office markets” “100% ownership by AP funds, and ultimately the government, and our expectation of extraordinary support"

Largest real estate company in Sweden with dominant position in prime office locations Long-term Government related owners (AP 1-4) 25% of rental revenues stem from creditworthy government and public sector tenants Substantial amount of liquidity supported by a credit facility from the

  • wners amounting to

EUR 1,7 bn High share of environmentally certified properties with high ratings LTV policy range

  • f 45-55 %

The project portfolio by nature includes a speculative element but represents a relatively small part of total asset

with Stable outlook by

A3

A3

1 2 3 4 5 7 6

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SLIDE 10

2. BUSINESS DESCRIPTION

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SLIDE 11

THE STRATEGY

Sustainability is a natural, integral part of Vasakronan’s organization and business. This applies to the board, management and our everyday activities. SURVIVORS ON THE RENTAL MARKET GROWTH MARKETS OFFICES AND CITY RETAIL

Focus on locations in Sweden with strong economic growth and high liquidity Focus on locations in Sweden with strong economic growth and high liquidity

TRANSACTIONS PROJECT DEVELOPMENT

The premises are modern, efficient and centrally located in areas with good communication. Retail is concentrated to city centres. The premises are modern, efficient and centrally located in areas with good communication. Retail is concentrated to city centres. The property stock consists of premises that remain attractive even in times of less demand. The property stock consists of premises that remain attractive even in times of less demand. The property stock is continuously developed in order to meet the demand and improve quality. The property stock is continuously developed in order to meet the demand and improve quality. We have a clear and well balanced strategy for transactions and an action plan for each property. We have a clear and well balanced strategy for transactions and an action plan for each property.

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SLIDE 12

A SUSTAINABLE BUSINESS MODEL

ENERGY CONSUMPTION

  • 55%
  • 55%

GRESB, Global Real Estate Sustainability Benchmark 2019 ENVIRONMENTAL CERTIFICATIONS %

84% 84%

As of 30 September 2019

COMMENTS

  • Sustainability is a natural and integral part of Vasakronan’s
  • rganization and business
  • In November 2013, Vasakronan was proud to be the first

company in the world to issue green bonds

  • The energy consumption has been halved since 2009
  • Renewable or climate-neutral energy have reduced carbon

dioxide emissions in Scope 1 and 2 by 98 percent between 2006-2018

  • As at 30 September, 2019, 84 percent of the portfolio have

environmental certification. The certification system mostly used is LEED and 70 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

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50 70 90 110 130 150 170 190 210 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 kWh/sqm 20 40 60 80 100 2012 2013 2014 2015 2016 2017 2018 2019 Q3

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SLIDE 13

Birger Jarlsgatan, Stockholm CBD Läppstiftet, Gothenburg CBD Triangeln, Malmö Kista Science Tower, Stockholm Kista Science City

MODERN AND HIGH QUALITY PORTFOLIO IN PRIME LOCATIONS

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DIVERSIFIED PUBLIC AND MULTI TENANT BASE

4 112 commercial contracts (residential and garage not included) CONTRACTED RENT BY SECTOR, % OF PROPERTY PORTFOLIO TENANT TYPE SHARE IN % Swedish Police Authority Public 3% Ericsson Private 3% H&M (Offices and stores) Private 3% Swedish Prison and Probation Service Public 2% Swedish Social Insurance Agency Public 2% Swedish National Courts Administration Public 1% Åhléns Private 1% Handelsbanken Private 1% KPMG Private 1% The Riksdag Administration Public 1% TOTAL 18%

14

24% 21% 18% 9% 6% 3% 3% 16% Public sector Services Consumer Goods IT Finance Telecom Industry Other

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SLIDE 15

CONTRACTED RENT BY PROPERTY TYPE

Vasakronan’s revenues are anchored in the office sector with diversification into other segments such as retail

Central Stockholm (inc CBD) Stockholm inner suburbs Central Uppsala UPPSALA STOCKHOLM

Offices Retail Other Offices Retail Other

Contracted Rent by Property Type % of Properties Contracted Rent by Property Type % of Properties

As of 30 September 2019.

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81% 12% 7% 68% 21% 11%

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SLIDE 16

CONTRACTED RENT BY PROPERTY TYPE (CONT’D)

…with Stockholm as core city and Uppsala, Gothenburg and Malmö as key hubs

GOTHENBURG MALMÖ

Offices Retail Other Offices Retail Other

Contracted Rent by Property Type % of Properties Contracted Rent by Property Type % of Properties

As of 30 September 2019.

16

61% 34% 5% 58% 29% 13%

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SLIDE 17

MARKET SHARE BY REGION

Vasakronan, the largest property owner in its key operating cities and can thus offer customers greater flexibility

GOTHENBURG CBD CENTRAL UPPSALA CENTRAL STOCKHOLM INCLUDING CBD

12% 7% 5% 5% 5% 5 10 15 20 25 Vasakronan AMF Fabege Hufvudstaden AFA 20% 10% 8% 8% 6% 5 10 15 20 25 Vasakronan Skandia Fastigheter Uppsala Akademi Uppsala Kommun Bonnier Fastigheter 22% 14% 9% 8% 7% 5 10 15 20 25 Vasakronan Wallenstam Hufvudstaden Balder SEB 20% 14% 7% 5% 4% 5 10 15 20 25 Vasakronan Wihlborgs Balder Volito Midroc

MALMÖ CBD AND VÄSTRA HAMNEN

Source: CBRE and Datscha, as of February 2019.

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SLIDE 18

Platinan, Gothenburg, EUR 243m Kronan, Sundbyberg, Stockholm EUR 157m Sergelhuset, Stockholm, EUR 345m

COMMENTS

  • Project development delivers greater return than acquiring properties
  • Vasakronan´s project portfolio has delivered an average Internal Rate
  • f Return of 11,5 percent
  • Ongoing property developments projects have a total investment

volume of EUR 1 212m, of which EUR 571m was invested as of 30 September 2019. The project portfolio represents only 8 percent of total assets

  • The risk-taking in individual projects depends on the market
  • conditions. Most of the projects are only started if long lease

agreements are in place

  • As of 30 September 2019 the average occupancy rate in major

property projects was 62 percent and the percentage of completion was 45 percent

HIGH QUALITY PROJECT PORTFOLIO

Most of the project aren’t started until lease agreements are in place

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SLIDE 19

3. SWEDISH REAL ESTATE MARKET OVERVIEW

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SLIDE 20

MARKET OVERVIEW

STEADY GROWTH IN THE SWEDISH ECONOMY

GDP Growth in Sweden, %

STRONG SWEDISH PROPERTY MARKET

Transaction volume, EURbn 5 10 15 20 25 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 Domestic International

Source: SCB, Evidens, National Institute of Economic Research, HUI Research, Eurostat, Sveriges Riksbank.

OFFICE EMPLOYMENT

Office employment, % change in metropolitan regions

COMMENTS

  • Sweden is one of eleven AAA-rated countries
  • The Swedish economy is growing fast compared to the EU as a whole and

Sweden’s unemployment fell from 6.7 percent (2017) to 6 percent (2018)

  • In December 2018 the repo rate was raised to -0.25 percent.
  • This economic environment has created a favourable investment climate in

the Swedish property market and has contributed to a rise in property prices

  • The transaction volume in 2018 was EUR 16 bn

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(5,2%) 6,0% 2,7% (0,3%) 1,2% 2,6% 4,5% 2,7% 2,1% 2,4% 1,2%

(8%) (6%) (4%) (2%) 0% 2% 4% 6% 8% 2009 2011 2013 2015 2017 2019 Estimate

0,5% 1,7% 3,7% 3,2% 0,9% 3,3% 2,2% 2,7% 4,8% 3,1% 2,2%

0% 1% 2% 3% 4% 5% 2009 2011 2013 2015 2017 2019 Estimate

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SLIDE 21

OFFICE EMPLOYMENT AND COMPLETED OFFICE SPACE

(P.A. AS % OF TOTAL STOCK)

Office employment has increased more than the supply of new office space in all of Vasakronan’s key cities.

UPPSALA MALMÖ GOTHENBURG STOCKHOLM

Source: Evidens, JLL, Vasakronan.

21

2,8% 2,1% 1,0% 1,1% 0,0% 1,0% 2,0% 3,0% 4,0% 2009-2018 2019E-2021E Demand / Office employment Supply / Completed office space 2,9% 3,1% 1,0% 1,2% 0,0% 1,0% 2,0% 3,0% 4,0% 2009-2018 2019E-2021E Demand / Office employment Supply / Completed office space 3,5% 0,8% 1,7% 2,8% 0,0% 1,0% 2,0% 3,0% 4,0% 2009-2018 2019E-2021E Demand / Office employment Supply / Completed office space 2,3% 2,1% 0,6% 3,4% 0,0% 1,0% 2,0% 3,0% 4,0% 2009-2018 2019E-2021E Demand / Office employment Supply / Completed office space

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SLIDE 22

RENTS AND VACANCIES - OFFICES

Despite increasing office rents, vacancies continue to decline

MALMÖ CBD GOTHENBURG CBD UPPSALA INNER CITY STOCKHOLM CBD

Source: Cushman & Wakefield. As of September 2019. Rent / sqm Vacancies, %

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5 10 15 150 250 350 450 550 650 750 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 (%) EUR/sqm 5 10 15 150 200 250 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 (%) EUR/sqm 5 10 15 150 200 250 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 (%) EUR/sqm 5 10 15 150 200 250 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 (%) EUR/sqm

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SLIDE 23

RETAIL MARKET OVERVIEW

Increase in Retail Sales 2019 but e-commerce sector accounted for most of the growth

INCREASE IN RETAIL SALES

Growth in Total Retail Sales, %

VASAKRONAN RETAIL CITY INDEX

Growth in Turnover for comparable stores R12,%

COMMENTS

  • The growth in the retail sector is expected to grow by 3.0 percent in 2019 and

the steadily growing e-commerce sector accounted for most of the growth.

  • The e-commerce is growing fast and now stands for almost 10 percent of the

retail sector.

  • The turn-over in Vasakronan´s City Retail Index has declined during the last

year.

  • Still a strong demand for retail stores in excellent locations
  • E-commerce companies establish physical stores in order to increase sales
  • nline, and the other way around
  • Although a negative turnover growth in physical stores, the result of

Vasakronan’s retail stores renegotiation R12 showed an increase of 4.3 percent

Source: SCB, HUI Research, Vasakronan.

  • 3%
  • 2%
  • 1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2016 2017 2018

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3,6% 3,7% 0,7% 2,0% 2,0% 3,4% 5,8% 3,4% 2,1% 2,7% 3,0%

0% 1% 2% 3% 4% 5% 6% 2009 2011 2013 2015 2017 2019 Estimate

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SLIDE 24

RENTS AND VACANCIES – RETAIL PREMISES

Rents and vacancies are stable on the retail premises market

MALMÖ CBD GOTHENBURG CBD STOCKHOLM CBD

Rent / sqm Vacancies, % Source: Cushman & Wakefield and Forum Fastighetsekonomi. As of September 2019 ( Uppsala Inner City as of March 2019).

UPPSALA INNER CITY

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2 4 6 8 10 150 350 550 750 950 1 150 1 350 1 550 1 750 1 950 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 (%) EUR/sqm 2 4 6 8 10 150 350 550 750 950 1 150 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 (%) EUR/sqm 2 4 6 8 10 150 350 550 750 950 1 150 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 % EUR/sq.m 2 4 6 8 10 150 350 550 750 950 1 150 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 (%) EUR/sqm

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SLIDE 25

4. FINANCIALS

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  • 10%
  • 5%

0% 5% 10% 15% 20% VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI

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. External valuation is carried out twice a year by an independent firm of appraisers.

Notes: (1) MSCI-Index excludes Vasakronan. Source: MSCI Swedish Property Index.

2017 2011 2012 2013 2014 2015 2016 2018 2010 2009 10 year average

Vasakronan MSCI Swedish Property Index(1)

9,1% 10,0%

26

Capital Growth Income Return

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SLIDE 27

STABLE OCCUPANCY RATE

Occupancy rates have been stable over the cycle. 2,3 % of the office vacancy is related to project development.

OCCUPANCY RATE

Investment Properties Projects

VACANCIES %

6,9%

6,9% As of 30 September 2019.

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91,9 92,8 93,0 93,0 93,4 92,0 92,6 94,2 93,1 93,1 93,1 10 20 30 40 50 60 70 80 90 100% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

4,6% 2,3%

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SLIDE 28

LEASE AGREEMENTS AND CONTRACT RENEWALS

During the last 12 months the rents on renewals have increased by 13,0 %.

DURATION IN CONTRACT PORTFOLIO

Average Term 4,0 Years (Share, %)

ANNUAL LEASING VOLUMES

EURm

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
  • Lease agreements are adjusted according to inflation
  • Of all the contracts up for renegotiation over the last 12 months, more than 70 percent of the tenants decided to extend their contracts
  • Due to rising rents the rent on renewals have increased by 13 percent in total during the last 12 months

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0% 20% 40% 60% 2019 2020 2021 2022 and after 39 39 42 42 50 37 58 44 57 48 66 20 40 60 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

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SLIDE 29

INCOME STATEMENT

EBITDA margin is stable over time and Interest Expenses have decreased despite higher debt.

INTEREST EXPENSES EBITDA RENTAL REVENUE COMMENTS

  • Revenues have increased by approximately 25 percent

compared to 2009

  • EBITDA has improved and EBITDA margin has been stable
  • ver time
  • Interest Expenses have decreased despite higher debt

EBITDA Margin

63% 66% 68% 69% 69% 70%

EUR/sqm

71% 70% 70% 73% 72%

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501 514 564 557 563 550 561 583 605 627 488

100 200 300 400 500 600 100 200 300 400 500 600 700 800 900 1000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 EUR/sqm EUR m

318 337 384 391 391 380 390 408 427 460 350

100 200 300 400 500 600 100 200 300 400 500 600 700 800 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 EUR/sqm EUR m

  • 123
  • 119
  • 154
  • 147
  • 140
  • 117
  • 105
  • 107 -109
  • 97
  • 80
  • 250
  • 200
  • 150
  • 100
  • 50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 EUR m

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SLIDE 30

CAPITAL STRUCTURE AND INTEREST COVERAGE RATION

LTV has been below 50% since 2011 and ICR has been way above the minimum of 2,0 times.

LOAN TO VALUE % INTEREST COVERAGE RATIO

2,0 Times

ICR & LTV TARGET

  • Interest Coverage Ratio has improved substantially and is

well above the minimum of 2,0 times

  • LTV shall have an average of below 50 percent. Accepted

deviation of +/- 5 percent

  • LTV has been below 50 percent since 2011
  • LTV shall be lower at times of high property values and

vice versa DIVIDEND POLICY

  • Under normal circumstances dividends shall correspond to

40-60 percent of the Group's profit before value changes and after taxes

  • In order to avoid over capitalization, larger dividend can be

paid in periods of rising property values

  • In times of negative property value development,

dividends may need to be lower or none, and if required, capital injection will be requested from the owners

30

times

2,8 2,9 2,5 2,7 2,8 3,2 3,7 3,8 3,9 4,7 4,4 1 2 3 4 5 6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 52% 52% 49% 48% 46% 46% 44% 43% 43% 41% 39% 0% 10% 20% 30% 40% 50% 60% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

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SLIDE 31

5. FUNDING

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SLIDE 32

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

  • Vasakronan has a EUR 1,7 bn revolving credit

facility with the owners.

  • The agreement has a constant maturity and can

be terminated with a notice period of 24 months

  • The commitment can be used for general

corporate purposes

  • Gives extremely strong liquidity position and

lowers risk of short-term funding CHANGE OF CONTROL

  • The change of control clause covers all our

capital market and bank funding. It is one example of our owners’ long-term commitment which provides security to our investors

  • Change of Control occurs when the aggregate

holdings of AP Funds ceases to represent at least 51 per cent. of the total voting rights represented by the shares and the rating is lowered by at least one full rating notch

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SLIDE 33

DIVERSIFIED FUNDING

With high proportion of green financing

DEBT PORTFOLIO, EUR BN LARGE PROPORTION OF DARK GREEN FUNDING

6,1

44% Green Funding 44% Green Funding

COMMENTS

  • Vasakronan has a diversified funding with a broad investor

base

  • Limited Secured LTV at 8 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

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As of 30 September 2019. Commercial Papers 0,6 Bonds SEK 2,3 Bonds NOK 1,0 Bonds EUR 0,37 Bonds JPY 0,1 Bonds AUD 0,0 Bonds USD 0,1 Secured bank loans 1,1 Nordic- and European Investment Bank 0,5

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SLIDE 34

DEBT OVERVIEW

Low risk due to long Average Fixed Interest Term and long Average Loan Maturity

AVERAGE INTEREST RATE, FIXED INTEREST TERM AND AVERAGE LOAN MATURITY DEBT MATURITY PROFILE, AVERAGE OF 5,2 YEARS DEBT – COVER RATIO 183%

As of 30 September 2019.

COMMENTS

  • Credit facility from owners and cash covers all debt maturities

and cash flows within 18 months

  • Long average fixed interest rate maturity of 6,2 years
  • Vasakronan has an ambition to diversify the investor base

further in new markets

  • Short term debt will be replaced by longer dated funding

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1 2 3 4 5 6 7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 Years / % Fixed interest term Average loan maturity Average interest rate

500 1 000 1 500 2 000 2 500 Available Liquidity Short term debt EUR m

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SLIDE 35

KEY CREDIT HIGHLIGHTS

Government backed ownership structure Largest real estate company in the Nordics Modern and high quality Office- portfolio in prime locations Strong financial performance Diversified public and multi tenant base

with Stable outlook by

A3

A3

35

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SLIDE 36

Thomas Nystedt Group Treasurer +46 8 566 205 41 thomas.nystedt@vasakronan.se

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SLIDE 37

APPENDIX

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SLIDE 38

FINANCIAL POLICY

Vasakronan has a conservative Treasury Policy with limited risk.

POLICY FINANCIAL RISKS

FINANCIAL POLICY ACTUAL AS AT 30 SEPTEMBER 2019 FINANCING RISK Average Loan Maturity At least 2 years 5,2 years Loan Maturing 12 Months Max 40% 18% Credit Facility from Owners and Cash / Loan Maturity 12 Months At least 100% 183% INTEREST RATE RISK Interest Coverage Ratio At least 2,0 times (last 12 months) 4,6 times Fixed Interest Term At least 2 years 6,2 years Interest Maturity within 12 Months Max 55% 28% CREDIT RISK Counterpart´s Rating At least A-, or BBB+ for derivatives under CSAs Fulfilled CURRENCY RISK Currency Exposure without assets in foreign currency Not allowed Fulfilled Secured Debt/Gross Assets Max 20% 8%

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SLIDE 39

INCOME STATEMENT

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Income Statement (EURm) 2017 2018 Q3 2019 Rental Revenues 605 627 488 Revenue Growth, % 3,8% 3,5%

  • Operating Expenses

(62) (66) (48) Repairs and Maintenance Expenses (10) (10) (8) Property Administration (31) (33) (25) Property Tax (51) (49) (46) Site Leaseholds 1) (15) (14)

  • Net Operating Income

436 454 361 Surplus ratio, % 72,1% 72,5% 74,1% Central Administration (9) (9) (7) Profit from Joint Ventures and Associated Companies (0) 15 83 Other Operating Income or Expenses

  • Interest income

Interest expenses (109) (98) (81) Site Leaseholds 1)

  • (10)

Profit Before Value Change and Tax 318 362 347 Change in Value of Investment Properties 744 994 631 Depreciation of land lease agreements

  • (0)

Change in Value of Financial Instruments 44 1 (160) Divested or Impaired Goodwill (2) (6) (7) Profit Before Tax 1 103 1 351 811 Current Tax (9) (11) (10) Deferred Tax (230) (137) (128) Profit from Assets Held for Sale

  • Profit for the Period

865 1 204 673 Other Items

  • Profit for the Period

865 1 204 673

1) Reclassification in accordance with IFRS 16 Leasing

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SLIDE 40

BALANCE SHEET

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Balance Sheet (EURm) Dec 31, 2017 Dec 31, 2018 September 30, 2019 Intangible Assets 200 195 188 Investment Properties 11 835 12 960 13 749 Equipment 4 4 4 Investment Properties, site leaseholds 1)

  • 489

Other Financial Receivables 86 95 245 Total Non-Current Assets 12 126 13 254 14 675 Current Receivables 81 84 129 Cash and Cash Equivalents 133 207 315 Total Current Assets 214 291 444 TOTAL ASSETS 12 340 13 545 15 118 Total Equity 4 793 5 622 5 922 Deferred Tax Liabilities 1 569 1 706 1 833 Debt, site leaseholds 1)

  • 489

Interest-Bearing Debt 5 450 5 698 6 061 Non-Interest Bearing Liabilities 528 518 813 TOTAL EQUITY AND LIABILITES 12 340 13 545 15 118

1) Reclassification in accordance with IFRS 16 Leasing

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SLIDE 41

CASH FLOW STATEMENT

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Cash Flow Statement (EURm) Dec 31, 2017 Dec 31, 2018 September 30, 2019 Net operating income 436 454 361 Central administration (9) (9) (7) Add back amortisation and depreciation 1 1 1 Adjustment for other non-cash items (1) (1) (1) Cash flow from operating activities before interest and tax 428 445 354 Interest Paid, Net (111) (99) (83) Taxes Paid (assumed to equal current tax) (1) (13) (19) Cash Flow Before Changes in Working Capital 316 333 252 Change in Net Working Capital 8 6 (14) Cash Flow From Operating Activities 324 339 238 Intangible assets

  • Investments in Existing Property

(237) (311) (293) Net Acquisitions/Divestments (41) 176 136 Other PPE, Net (0) (1) (0) Other Financial Assets

  • 15
  • Dividends from joint ventures
  • 5

Cash Flow from Investing Activities (278) (121) (152) Dividends and Group Contribution (373) (373) (373) Loans to Owner

  • Change in Debt, Interest-Bearing Liabilities

327 250 292 Change in collateral (33) 24 127 Redemption of Financial Instruments (33) (45) (24) Cash Flow from Financing Activities (113) (144) 22 Cash Flow from the Period (68) 74 108 Opening Balance Cash and Cash Equivalents 200 133 207 Closing Balance Cash and Cash Equivalents 133 207 315

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SLIDE 42

CASH FLOW FROM THE BUSINESS AFTER NET INVESTMENTS

Cash Flow from the business exceeds net investments

Cash Flow

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( 400) ( 300) ( 200) ( 100) 100 200 300 400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

EUR m

Cash flow from the business Net investments Free cash flow before financing

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SLIDE 43

YIELD DEVELOPMENT

Property yields offer attractive spread over government bonds in all Vasakronan’s key cities

Source: Cushman & Wakefield, Bloomberg.

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  • 1%

0% 1% 2% 3% 4% 5% 6% 7%

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

Stockholm CBD Uppsala Inner City Gothenburg CBD Malmö CBD Swedish 10Y Gov Yield