Arlandastad Group AB (publ)

A warm welcome to Harlanda Stad Group's presentation of the annual report for the first quarter of 2025. Today's presenters are CEO and head of the company Dieter Sand and CFO Henrik Morén. For those of you who follow the live presentation, you have the opportunity to ask questions in writing during the presentation. You can do so by clicking on the chat icon that you find under the speaker images. I will return to the answer to the question at the end of the presentation. And with this, I turn it over to you, Dieter.

Tack så mycket! Trevligt att träffas igen och dags för årets första rapport. Som sagt var, Ditesan DTA är vd på Arlanda Sad Group och har varit med i bolaget i den här rollen sedan 2010. Arlanda Sad Group, vad gör vi? Jo, vi utvecklar fastigheter och vi utvecklar fastigheter på två platser. We own about 3 million square meters of land in Arlanda. And we own 5 million square meters of land in Skavsta. Gigantic projects. We work long-term. And we have a project portfolio of about 45 to 50 billion. In both places, we have close cooperation with the municipality and the state. I Jarlanda stad har vi ett bolag tillsammans med kommun och stat som heter Airpro City Stockholm och nere i Skavsta så äger vi området kring Skavsta flygplats tillsammans med kommunen som äger 9,1% i vårt gemensamt ägda bolag. Vi har en långsiktig investeringshorisont och en låg belåningsgrad. Värdeskapande. Long horizons and long projects, which of course are divided into smaller units. Over the past 16 years, we have created value in projects where we have an average project profit of 31%. But we are not just creating economic value, but with such incredibly large land areas that we are developing, it is extra important to work in harmony between economic development and sustainable development. I'm going to take an example that concerns a property that we have worked with for a number of years, where we have worked hand in hand with sustainable development and economic development, and it is a property that many know by name and it is called Eurostop 2017 and has been called since 2020 Scandinavian Expo. What we did with the old Eurostop facility was that we acquired it in 2017-2018 and our ambition was to create a place for sustainable meetings in a sustainable place. And just the situation makes Det här i sig har en bra grund för att vara en hållbar utveckling. Vid en flygplats mitt mellan Stockholm och Uppsala, en plats där det är lätt att ta sig och lätt att ta sig ifrån. Vi sparar väldigt, väldigt mycket på miljön genom att folk slipper färdas kors och tvärs genom stan eller till andra städer. När vi byggde om den här arenan så använde vi, återanvände vi en hel del av de invändiga delarna och byggdelarna och vi återanvände även rivningsmassor som vi använde i fyllningsmassor och liknande. Vi jobbar med att förbättra energieffektiviteten i fastigheten och vi har i fastigheten nu en utveckling av en av Sveriges största snabbladdningsstationer. Vårt mötes- och eventbolag som finns placerade i Scandinavian Expo är certifierat och håller hållbara evenemang. De är certifierade enligt den globala standarden för hållbara evenemang. I fastigheten har vi gröna hyresavtal. Tittar vi på den ekonomiska utvecklingen av den här fastigheten så förvärvade vi den 2017 för 315 miljoner. Vi skapade konceptet på rätt plats. Det var inte så att vi försökte skapa ett koncept och trycka ut på marknaden, utan det var snarare så att det fanns en efterfrågan från marknaden för att få lägga stora möten i nära en flygplats mitt mellan Stockholm och Uppsala. Men efter investeringar på runt 800 miljoner så har vi skapat en total projektvinst i det här projektet på 56%. And as I said, over 15 years, we have an average project profit in our real estate development projects at 31%, and this was just one example. Under 2025, we have had a focus on increasing the pace. Large land areas, despite the fact that we make large investments and develop a lot, are not noticed so much, because we have so much raw material in our factory, building materials that we can actually start building and developing already today. So, we have made our views more receptive to both sell off land, develop projects together with partners and develop projects in our own management. This is a concept that has proved to be very successful because the business pressure has increased markedly since the second half of 2024. Previously, we have been restrictive and wanted to develop everything in our own book, but now we adapt more and are more flexible to increase the pace of the development of the Arlanda city area, but also the Skalsta area. We have also made an organizational adjustment to increase the flexibility. We have reduced the number of people in the company to a core group and buy in services in need. And we can already see the effects of that today, because the administration costs for the company are decreasing. If we look at the first quarter, examples of business changes, just to mention a few, we have made a sale of a land area of about 5,000 square meters to Evrock, where the underlying building rights value is 5,100 kronor per sale. It is worth mentioning that the building rights value is recorded in our books for about 3,000 kronor per square meter. I have written an explanation of another market sale to a company called JSR. The size of the sale goes up to about 12,000 square meters of building rights to a underlying building rights value of 5,000 SEK per square meter. What we do when we sell is actually to go from unrealized values to realized values. It is interesting that the realized values are a good bit above the unrealized values that we have in the books. Det är även tecknat en avsiktsförklaring med Arvidsro om utveckling av någonting som vi kallar Training Academy, en plats för möten för idrott och hälsa. För att man ska förstå vad vi pratar om här så kan man tänka sig Bosön på rätt plats och 40 år senare när det skapades. Vi håller dessutom på, som jag nämnde, att skapa en av Sveriges största snabbladdningsplatser eller plats för snabbladdare. Läget mitt mellan Stockholm och Uppsala, Sveriges mest trafikerade väg, närheten till flygplatsen, And as the infrastructure looks today, it requires a good hub of fast charging stations. And as I said, here we are working together with three different partners and starting one of Sweden's largest fast charging stations. And also connected to a really, really nice restaurant that we will, in a short time, reveal who will run it. The rents are available and the combination is built, started. Vi har tecknat ett antal nya hyresavtal både i Arlanda stad och nere i Skavsta. I Skavsta vill jag framförallt belysa hyresavtal med Saab och Preflight där båda avser hangarbyggnader för flygverksamhet. Gladly, I would also like to present the latest lease agreement after the period started, which is signed with Nyköpings kommun. Nyköpings kommun has chosen to put all their practical vocational training out on Skavsta, or near Skavsta airport. So it will be vehicles, transport, construction, facilities and aviation technical line that will be located in a campus area outside Skavsna flygplats. And we have signed a notice there that is 15 years and the first influx occurs in January 2027. I will now hand over to my colleague Henrik Morén.

Thank you Dieter. We will look at the results and financial position, what has actually materialized during the first quarter and some comments on that. We usually raise a number of key statements, we do this this time as well. I will not go into all these pages in detail, but I will highlight some parts that I think are worth pointing out. The market value of our property portfolio is 66.23 billion SEK, 6.6 billion SEK at the beginning of the first quarter of 2025. It is basically unchanged since the beginning of förra året, men om man tittar på 12 månader så är det en uppgång med lite drygt 2%. I would like to point out here, as Dieter mentioned earlier, that the transactions we make now are based on our value of building rights that we sell, essentially over what we have in our books. This 6.6 billion is of course what we provide in our books. I would also like to mention another point here, and that is our revenues. They are down a bit during the first quarter compared to last year, and that is due in full to the operational activities. If we look at liquid funds, we had 124 million at the beginning of the period. As you know, our liquidity is going up and down a little bit, depending on sales, refinancing and cash flows from the running business. I can mention here that since this period we have worked with our liquidity and we pressurized yesterday that we have taken another loan to refinance a subsidiary loan that we are currently in. We have taken in 125 million and the refinancing is at 68 million. We also have, for those of you who follow us, a contract with Trafikverket down in Skavsta, where we get advance for the work we are going to do in connection with the establishment of Ostlänken. Part of the payment under that contract will end here during the day. Next, I would like to highlight the NAV, our net asset value, that is, what we think the value in the balance sheet is per share. It is 84 kronor. Those of you who have followed us know that it has not changed much over time. Men jag vill belysa ändå det faktum att 84 kronor kan ställas emot vår börskurs. Nu har inte jag sett de senaste timmen, men den var i alla fall 27,80 här under eftermiddagen. Det där är ju då ett värdegap om cirka 3,5 miljard. Det kan man ju reflektera över när man studerar de siffror vi redovisar kvartalsvis och årsvis. Let's go to the next page. Result per result calculation. Sorry, there is some noise here. Now we are on the next page. we can state that the result has been positively affected by the continued savings we have made in the administration costs, as Dite was referring to. Vi jobbar löpande med vår kostnadsmassa och har ambition att såväl öka intäkter som att försöka minska kostnader. Vi har genomfört ett arbete som syftar till ökad flexibilitet där vi lägger mer kostnader through consultants and lower costs through permanent employment. We expect that this cost saving and efficiency work will give full effect in the figures from the fall, the later parts of Q3 and Q4. So the reduction in the administrative costs of 8% is not the complete reduction that we are trying to achieve. I can also mention that our result has been positively affected by the improvement of the interest rate net. We will come back to that a little later. But it has also been negatively affected. For those of you who have good eyes, you can see that there is a small asterisk under this result calculation. We have a negative, or a reservation that is negative from a dangerous rent loss of 4.5 million. And that has then burdened the results during the first quarter. If we then go to the next page and look at the balance calculation. As you know, we have a strong financial position, 4.4 billion in capital against the access value of almost 7.5 billion. It is a solidity of 59%. relatively low and conservative, we ourselves think, reward of our contributions and even if we just look at our administrative facilities, we think that the reward is conservative. But you should see our reward as you saw in the earlier picture, 24% LTV compared to our collected contributions. And here we have an updated diagram where we clarify what our property portfolio looks like. And as you know from earlier, you who have followed us, it is about half of our assets and half is in building rights. There I want to make a little addition or clarification. We sometimes get questions about what type of building rights we have. And it is building rights that can be built immediately. So when we work in these sales and the ambitions with sales that Dite pointed out, including Arvids Ro, GSR and Evrock, it is building rights that are ready to be used. Either to build or sell or work in JV, as Dite was talking about earlier. So hopefully this gives a clearer picture for those of you who follow us in how our assets are distributed between administrative properties and building rights. If we look at our financing, not so much has happened here, but I would like to point out two things. One is the company loan, which stands at 68 million kronor. That is what we have now received financing for, to be able to refinance in June. I would also like to point out the fact that the interest rate has gone down. I already mentioned that when we talked about the result calculation. But the interest rate affects us positively when it goes down. We had a fairly miserable interest rate burden in the company during the second half of 2023 and the beginning of 2024. But the interest rates have, as you know, gone down and stabilized at a new level here during the year. And just to give you a hint, the change of 10 points by Stibor, which is the base rate we work from, affects our result by about 1.5 million. Today, Stibor is about 20 points lower than it was at the change of year, and it is 145 points lower than it was a year ago. If we look at our cash flow, it is similar to what we have had before, and you may know how we work. We have negative cash flows in our running business, compared to our operating businesses that we talked about earlier. But we also have positive cash flows in our financing business. Then, as DITI mentioned, we are working at an increased business pace to see if we can materialize some of our assets and building rights. That type of sales, such as Arbetsrå, Eurok and JISR, affects our cash flow for investment businesses positively. Men jag ska vara noga med att påpeka att de här tre försäljningarna som Dieter har berört och som vi har meddelat om tidigare, de finns ju inte med i Q1-siffrorna utan det är någonting som vi ser framför oss att vi har nytta av i kommande rapporteringar.

Then I'll take over the floor again, and the reason why we don't have them in this Q1 report is that the agreement is of course conditioned by different things. It may be that the property is to be separated or other parameters that will fall in, that is, our partner in the agreement or counterpart has not arrived, even if there is an agreement that ensures that things will not happen. Main focus. By thinking a little broader and not just focusing on self-development, but being a little more open to different types of business, it has made the business pressure increase. And it has increased significantly, and that's great. And our main focus now is to take care of, realize, increase the business pressure, and above all, do business. And I think it's extra fun to see that the deals we do with pure land sales, that they happen to 30, 40, 50% over the recorded value, when it is sometimes where we get questions about, oh, you have so much value for your building rights, although they are unrealized. Yes, now we realize and we get a value that is 30, 40, 50% over what we have in the books. It's fun. Så vi fortsätter jobba med ökat tempo, vi fortsätter jobba dessutom med en kostnadsfokus och en flexibilitet där vi anpassar organisationen och de konsultstöd vi tar in, allt eftersom typen av affärer som vi jobbas med. Kostnadsfokus, vad betyder det då? Självklart är det en hygienfaktor att vi tittar på att anpassa vår postym efter de olika affärerna och affärsmodellerna vi jobbar med. Så där är vi och så navigerar vi. Med det så vill jag säga tack så mycket från oss.

Tack så mycket. Då övergår vi till Q&A-delen av den här presentationen. And I just want to remind you that you who are with us live, please enter your questions by clicking on the chat icon that you find under the speaker image.

Then I will read the questions that come in and then I will try to answer them. Hi, I see that the potential has been with you since the stock market introduction. Now it has soon been four years, you are doing great things. But what is your plan to create value for us small savers? The exchange rate is just falling out, no allocation and so on. Can you explain a little what your plan is to increase the stock market value? So far it has only gone out. I can try to answer that question. We are of course comparing with other companies and it is quite true, as you point out Christian, that the stock exchange rate has not developed as we had hoped. We are not alone in this. If you look at how real estate companies have generally developed on the stock exchange, it has gone up and down, but for many it has also gone down for us. So it is partly a business phenomenon. The other thing we do is that continue to work on what DITI is promoting, that is to clarify our values. I talked earlier about the values ​​we have in our books at 6.6 billion for our properties and building rights, where you can question whether the building rights are in the right value books or if there are other values. We show on other values when we sell at least. To clarify these values is one way to get investors to understand our potential. Another thing we work with is to develop our own projects, either ourselves or together with others. This is also a way to solve the potential that we see in our project portfolio. When we talk about the world of cash flows per quarter, it says quite little about the potential we see in our portfolios in the future. Kan vi fortsätta att producera bra projekt till bra avkastning, de här 31 procenten som DT berörde? Ja, då finns det ju en väldig uppsida också i de projekt vi ser framöver. Vi tror att det bästa sättet att få investerare intresserade av de här möjligheterna, det är att fortsätta att leverera bra avkastning och bra projekt. Vilket vi tycker att vi har gjort, även om vi har haft lite problem med att få börsen att se det också, uppenbarligen. I hope that was the answer to the question. We have another question from Thomas. Are there any plans to change the list from First North Premier to Nasdaq? I take that question too. No, there are no such plans for the present. Next question from Niklas. How much of your construction portfolio around Arlanda do you expect to be able to renew or rebuild in the next five years?

Vi lämnar ju inga prognoser, men vår absoluta ambition är att åtminstone trippla vår användning eller aktivering av byggrätter. Vad betyder det då? Jo, att i anspråk ta en byggrätt betyder att utveckla den eller sälja den eller jobba med den i joint venture-konstellationer. Så att åtminstone trippla i anspråk tagande takten av byggrätter relativt idag.

Det var de frågor som vi har fått som vi kan se i vår feed. Är det någon annan som har en fråga så passa på att skriv in den nu så ska vi försöka svara.

Ingen ytterligare fråga? Då tackar vi så mycket för att ni ville lyssna på oss. Tack.