Implantica AG

Good morning everyone and a warm welcome to our first quarter earnings presentation. It has been an eventful morning and Leif Synnes, myself, Helena Lindahl and Daniel Telberg is ready to present the first quarter result. So I will give the floor to Leif and he will run the the results and the strategy update.

Thank you, Helena.

And if you look on the period, I think the underlying business in SPB is continuing to perform well. We see an increase in the revenues from a like-for-like standpoint by 2.7% and the like-for-like growth in net operating income is a little bit more than 4%. So stable and positive development for SPV and we continue to developed the income from our properties and since the the starting of 2026 the like-for-like growth in from our properties have been 26 percent so that is very good we see almost flat valuation on the properties we see also that we continue to do good steps with our strategy and our strategy and the core holding strategy that we have is going quite well at the moment. During the first quarter, we set new financial targets. One of them is that we would like to grow the net asset value by a minimum of 12% per year. One way to do that is to increase the like-for-like revenue streams. We need to increase net operating income by at least 1% above the inflation. And the next target is a long-term goal to go back to investment grade for SBB Group. And the first step is to make sure that our core holdings or large subsidiaries receive investment grade funding. And we have Nordicus doing that. And we also have PPI doing that. And also we believe that Svea Fastiater is in a good position to also issue bonds with an investment grade rating. So that is quite good. And also one idea, which is, Nothing new for you guys is that we intend to build efficient and leading companies in all business areas. As I mentioned, we have good progress with our subsidiaries and associated companies. We in Nordicus, we did an additional raise of US private placement. So now we have in total 17 billion SEK with a 13-year duration. So it's quite good and stable funding, which complement the long-term assets we have in Nordicus. And Svea Fastigheter received an indication from Fitch that they have a good chance to issue bonds with an investment grade rating. And all our three main companies continue to see good opportunities in the market and at the moment they are able to catch some of the opportunities and I come back to that at the later in the call. And we intend to optimize the the property management in the community segment. And one way to do that is to split the holdings into two companies. One is called SBB Samhälle and one is called SBB Utveckling. And Utveckling is in English development. And we add specialist workforce for each segment in order to continue to perform above the market. And we know that we have had some high administrative costs the last years due to various issues that we have had. One is the legal issues with the bondholders. One is that we tried to structure the group in a better way. And now it's time to start lowering the administrative costs. And we see a positive trend at the moment and that positive trend, we need to continue. Yes, in short, the long-term goal is of course to have a transparent group with a lot of funding options for the holdings that we manage. And we have then split the assets into four different segments. One is community, one is residential, and one is education. And now we split it into one sub-segment more, and that is development. We will have a more specialist workforce that work with those properties. The people there will turn potential into long-term value. In the development, the property is valued at 4.9 billion SEK. And we limit the properties to 10% of the company's balance sheet. So we don't think at the moment to increase the volume of properties here. It's just to maintain and develop the assets we have and turn them into cash cows. That's the goal. And we believe that this business have ability to generate even higher return on equity than the cash flows, the cash cows that we have. So we have a 15% minimum return on equity in this segment. And as I said earlier, the property relations was flat during the quarter. And you see it here on the yield as well. The yield is rather flat at the moment. So 4.8% we are receiving from the properties at the moment. And also the required yield on the properties is almost similar as in the end of 2024. And also the economic occupancy is rather stable for SBB. And one part of that is that we hold a lot of properties with long leases. And we also hold a lot of properties in the residential segment in Sweden, which is a quite stable business.