Arlandastad Group AB (publ)

Varmt välkomna till Arlanda Stad Groups presentation av delårsrapporten för januari till december 2024. Dagens talare är CEO och koncernchef Dite Sand och CFO Henrik Morén. För er som följer presentationen live finns möjlighet att ställa frågor skriftligen under presentationens gång. Det gör ni genom att klicka på chattikonen som ni hittar under talarbilderna. Vi återkommer till svaren på frågorna i slutet av presentationen. Det var en händelserik period för bolaget där vi ökat tempot med framgångsrika samarbeten och realiserade värden i både Arlanda stad och Skavsta. Dieter, vill du berätta för de som lyssnade lite kort om bolaget och de aktiviteter som pågått under perioden? Tack.

Hej på er, Ditesan heter jag och är vd för Arlanda Stud Group och har jobbat och varit vd sedan 2010. Vi är ett bolag som håller på att utveckla i nuläget två stycken stora sammanhängande markområden. Det är ett område som ligger uppe vid Arlanda som är cirka 3 miljoner kvadratmeter stort och det är ett område som ligger nere vid Skavsta som är cirka 5 miljoner kvadratmeter stort. De här områdena ligger såklart strategiskt placerade i noder där staten investerar miljarder i infrastruktursatsningar. Tittar ni på bilder här så ser ni en cirkel där det står 4,2 miljoner invånare. Inom den radion så bor det alltså 4,2 miljoner invånare. Vi är långsiktiga, vi har en stor projektportfölj och vi är starka för framtiden. Vi bedriver långsiktig kvalitetsgrundande fastighetsutveckling. Vad betyder det? Jo, den infrastruktur, den utbyggnader vi gör och skapar, kommer att stå där länge. Det är viktigt att vi som långsiktiga ägare också värnar om att kvaliteten är bra från början. Strategiska områden, sa jag. Arlanda, Skavsta. There are many big issues in the Stockholm Council right now that actually affect us and our land areas. We have discussions about how Arlanda should be strengthened. How should Sweden get an internationally competitive airport? How does the infrastructure need to be? How should the collective traffic be? And what happens to large airports out in Europe and in the world? The development of large airports is good for Sweden's economy, and it is good for Stockholm's economy. Arlanda's development is a big issue that of course affects our areas. In Stockholm we also have the Bromma issue, which has been a bubble for a number of years. And Bromma's goods or non-goods of course also affect us, both in Arlanda and Skavsta. I Skavsta så har vi ett fem miljoner kvadratmeter stort utvecklingsområde som får tågstation år 2032. Sveriges största infrastrukturprojekt Ostlänken togs det första spadtaget på under Q4 2024. Ostlänken kommer innebära att Stockholm får direktkoppling till Skavsta på en tid med tåg som är ungefär 45 minuter. Tågstationen kommer att ligga på Skavstads terminal och du kan gå torrskål från terminal in till flygplatsen. Vi har NATO-frågan. Att Sverige gått med i NATO påverkar såklart viktiga infrastruktur. Att Sverige gått med i NATO gör ju våra områden än mer intressanta för till exempel Försvarsmakten. I Stockholm har vi också en annan stor frågeställning som vi i bolaget har jobbat med under säkert 12-13 år. Det handlar om Stockholms och kanske Sveriges största mötesplats, Stockholmsmässan. Stockholms stad har under föregående år aviserat att man kommer att flytta Stockholmsmässan från deras placering man har idag i Älvsjö, strax utanför Stockholm. Vi tycker och har tyckt sedan 2012-2011 att ingen mer naturlig placering av Stockholmsmässan eller Älvsjömässan finns väl ingen mer naturlig placering än vid Arlanda flygplats. En plats som är lätt att ta sig till från både Stockholm och Uppsala. En plats som redan idag har 26-27 miljoner passagerare per år. Det fantastiskt läge kommer att bli fantastiskt logistiskt och också ur ett hållbarhetsperspektiv att slippa slussa människor över hela stan genom stan ur ett infrastruktur- och hållbarhetsperspektiv. And of course, just like for all other real estate companies, I also affect the interest rates that we have had in real estate companies positively. Our project portfolio is enormous. The potential for building rights in our area is a couple of million square meters. We have a project portfolio that has risen between 45 and 50 billion. So there are long project som såklart delas in i många faser och många olika deletapper. De sista 15 åren så har vi haft en genomsnittlig avkastning eller genomsnittlig avkastning på våra projekt på 31 procent. Alltså projektvinst på 31 procent. Och vi har en yield on cost på cirka 9 procent. Det är fantastiska siffror. Det understryker att vi har en erfaren a competent organization that works with real estate development and it also undermines our long-term. Both in Arlanda and Skavsta we work close to the state and municipality and in Skavsta we also own the area together with the municipality. Large urban development projects or large area projects require a common consensus from the business community, the state and the municipality. I'm going to take two examples of value development of properties that we have worked with. One example is an area where our entire journey started, which today is called DriveWebCenter. It was called Arlanda Stad Outlet 2008-2009. The company acquires Arlanda Stad Outlet for over 30 million, has invested 144 million, The area consisted of about 13,000-14,000 square meters of premises, which were converted from commercial premises to now educational premises for the vehicle industry. The area also had 50,000-60,000 square meters of building space. And in total, to date, we have a valuation of almost 400 million, which gives a project profit in relation to what we have put into the property at a total of 266%. These are magical numbers. Another example of value-generating property development is what many feel like Eurostop. We acquired Eurostop from Unibail Rodamco, now Westfield, in 2017. And saw an opportunity to create an embryo or the start to Sweden's best or Sweden's closest meeting place. Det gjorde vi också. Vi konverterade delar av den här anläggningen till en mötesplats, en mötesarena, Scandinavian Expo. Den här mötesarenan hölls i mera 2023. I princip alla möten som Sverige höll i egenskap av att man var ordförande i EU. Vi skapade också 421 hotellrum som för nuvarande och en lång tid framöver hyrs av Strawberry. Looking at the entire project investment so far, we have converted maybe 50-60% of the facility, so we have created a project profit of 53%. And these are profits that we have not yet realized, since we still own the properties we work with. Let's look at 2024. This has meant increased opportunities and increased development pace. We also focus on reducing costs, our own costs, administration costs and so on. We have a number of successful joint venture collaborations going on, including one in Arlandastad together with Swiss Life, where we are developing a 125,000 square meter large area And it is primarily for businesses that have a connection to or are dependent on the eminent situation in the middle of Stockholm and Uppsala, close to Arlanda airport. We are realizing the world to show the potential that our building rights actually have. About half of our accesses today are in building rights, and there is a fantastic potential over time. Let's look at Q4 and the introduction of 2025. In 2024, we completed a large project, 10,000 square meters of bakery. We did not take, but the state took the first shareholder to Sweden's largest infrastructure project, which I mentioned earlier, Ostlänken. What will make Skasta move in time much, much closer to Stockholm. And down at Skavsta, Tuve Airlines also launched flights from Stockholm Skavsta Airport to Gran Canaria. And then Q1 has started at a rapid pace. We have sold 5,000 square meters of land to a company called Evroc for an average of 5,100 kronor per square meter of building rights. To compare with the recorded value we have on these building rights at 3,180 kronor per square meter of building rights. Yesterday we published a letter of intent with a partner called ISR, about the acquisition of approximately 12,000 square meters of building rights. In this case, we sell those 12,000 square meters for 5,000 SEK per square meter of building rights, to compare with a book value of 3,180 SEK per square meter of building rights. So these are fantastic values that we are implementing here, and also proves that our building rights values in the values, there is great potential in them, just through sales, without even developing the building rights. We are also creating one of Sweden's largest clusters for fast charging of electric cars. A very important central issue in today's development of electric networks and so on, with electric cars and everything it means. Området kommer att ha cirka 80 stycken snabbladdare, vi jobbar med fem stycken olika varumärken och det kommer att stå på plats här förhoppningsvis under 2025 och det driver såklart stora flöden till Scandinavian Expo anläggningar, det är där det här klustret ligger. Tittar vi på Skavsta så har vi tecknat flertal nya avtal redan in på det nya året nu och bland annat Saab tycker jag är värt att omnämna här. So, I'm going to hand it over to my colleague Henrik, who will talk a bit more about numbers.

Thank you for that. Dieter has talked about a lot that is happening and a lot of exciting things that are ahead, but if we still spend a short time talking about what has happened over the past year, I can summarize by saying that the result in many parts is in accordance with the plan, but in some parts it is worse than the plan, and that has not least to do with environmental factors that we have had a hard time affecting, but that have affected us. I am thinking in the first place of Skavsta, where we have had a significantly lower personal traffic, than what we had hoped for, and that has to do with the deterioration of the availability of the airplane, which has simply not been there as planned. And that has affected us negatively. But if we look at some of the key figures that we focus a lot on, In the result, we see that the revenues are down, as I was talking about. Both the rent revenues are down, and that has to do with a slightly lower turnover in some cases, but also with the fact that the comparison result included a one-time compensation of more than SEK 10 million for an agreed rent contract, which was booked in December 2023. So the decline is not as big as it is here, but it is down as we see it. When it comes to revenue for operational operations, I was talking about Skavsta, where reduced flight traffic has led to lower results. But we have also had lower results in our event operations out in Arlanda, XBO. The result of the period in general is an improvement, and this is due to the fact that we have both realized and unrealized value changes of properties. I will come back to that in a moment. If we look at the balance sheet, we can see that our assets have been valued somewhat. It is partly due to a somewhat higher valuation of our building rights, but also due to the completed properties that we have placed under 24. I am thinking in the first hand of Bank & Food. If we look at our reward rate, it is somewhat lower. We work with our long-term financing, as you understand, and it contains a standing amortization to our main bank, but we have also amortized part of our debts in conjunction with loan payments. It is somewhat down, but we feel comfortable with our reward rate. I can also mention, and we have sent out a message about it earlier, that we have extended the runtime of our loans, so we have a much longer duration in the loan portfolio today than we had earlier under 2024. If we look at our NAV per share, it is down about 1.5%. And if we look forward, as Dite was talking about, we have done a lot about adapting and optimizing the organization. I will come back to that very soon. And we continue with that work for 2025 and forward. Even the measures to reduce the costs of air traffic in Skavsta, which we have also communicated earlier, goes according to plan and does not require defects. If we look more specifically at the results, I have mentioned several posts here, reduced housing income and reduced income from operating businesses. If we look at the cost side, we can see that If we look at the direct comparison figures here, it looks a bit tricky because we have partially reclassified property costs, operating and administrative costs, and we have re-divided some costs so that it is better to agree with which costs that the respective cost should be under. My recommendation is that you read these three costs together. If you do that, you see that our costs have decreased by about 33 million, equivalent to about 8% during the year. And that undermines, we think, the job that we do with focusing on costs and making sure to trim the cost side in the business. I also want to mention that it looks like we are not doing anything about the financial costs, because they are largely as high as 24 as 23. This has to do with, as you remember, that Stibor and our larger loans to financiers are linked to Stibor. Stibor went up a lot during 23, topped out during the first quarter, you could say, 24. over these two years, it is roughly the same financial cost. But then you have to remember that it is on its way down. I'll get back to that very soon. Financial position in summary. I just want to draw attention to two points. One is our administration and mobility facilities. We provide our values based on these two categories. And why we have mobile properties is because we have operating businesses that are operating within certain properties and then we have to provide them with mobile properties. However, we see all our properties as administrative properties. But that is not how they appear in our provision. If we look at the debts, the bulk of our debts today are long-term debts. For those of you who have followed us for a while, you know that this is not what it looked like in our report for Q3-24, and it depended on this loan extension that I just talked about, which was not finished then, but now it is, so that means that we have a much longer duration in our loan portfolio, which you see here. We have an average period of 2.3 years on the company's loan. This picture is It is quite similar to the image you have seen before. We have, most recently, a loan with security in sub-contracted properties, but we also have non-secretary loan and other insured debts of 114 million SEK. The average rate, as we predicted last year, was 6.30%. And you who follow Stibor, you know that it has gone down significantly. And I can say that in the current situation, our loan cost for the larger loans, six-figure loans, is a bit under 5%. Finally, you can see that the cash flow is negative, but it is not as negative as it was in 2023. A few things that have affected our cash flow. A smaller acquisition in our subsidiary Training Partner. We have also acquired the remaining shares of the Jive company that we had with Brabygg, which included Bankomat. We have sold business in Skavsta, or a farm there in Skavsta, which positively affected our cash flow. And in general, as I know we talked about last time, our cash flow is greatly affected by what we do in the investment and financing business that we work actively with. We have an exciting portfolio that Dieter has talked a little bit about, things that we have prepared that we have landed here during at the beginning of this year, and we hope and believe that there is more in our business portfolio to work with in the future. Those businesses are of course affected by the cash flow positively, as you understand. I therefore leave the floor to Dite for a conclusion.