John Mattson Fastighetsföretagen AB (publ)

Welcome to John Mattsons Q2 presentation 2025. During the Q&A, participants can ask questions by pressing square 5. I now hand over the floor to the CEO Per Nilsson. Please.

Thank you very much. My name is Per Nilsson and I am CEO of E-Matsson. I look forward to presenting our report for the period from January to June together with our CFO, Eva Pilo Kart. If we start by summarizing the quarter, we can see that the company has continued to develop positively. If we look at the whole period from January to June, we have a growth management result of 23% for the period compared to the same period the previous year. We also have a positive value development of .5% for the quarter. During the quarter, we have continued to deliver on our growth strategy, where we have had an initial focus on investments in our existing assets through energy efficiency and value-creating housing upgrades. If we start with our work with the effectiveness of our housing energy use, we can see that it has been a successful work. If we look at the total energy use during the first half of the year, it is a whole 9% lower than for the same period and previous year. This is normal year corrected numbers that also take into account the differences in the external temperature between the years. During the first half of the year, we have also made decisions on energy resources that are estimated to reduce our energy use by another 13%. We have also continued our work by scaling up the upgrades, where we have both completed the first stage in our upgrade project in Rotebro. We have also completed the last stage in our upgrade project in Örby. As I mentioned earlier, we have initially focused on creating growth through investments in existing assets. Now we take the next step in our growth plan by also preparing for new production, where we have after the period's output drawn a number of projects for a care home in Abramsberg and Bromman, 80 places. We have also made a decision with an operator, who is responsible for the rent and the operation of the home. This is the starting point for our return to new production, against our long-term goal of starting 250 apartments per year. If we continue to fulfill our financial goals, it is very pleasing to be able to state that we are fulfilling both our goal of increasing the growth in management results per share, which should be at least 10%, and also our goal of seeing growth in long-term value per share, which should also be at least 7%. If we start with the management result, we can see that the revenues increase by about 5% for the period, while the fixed costs decrease by about 1%. This then makes the drift surplus increase by 8% for the period. If we look at the underlying drives for the revenues to increase, it is partly the annual rent adjustments for housing, but also that we have worked on both the rent and vacancies in the commercial stock, where we have then also increased our rent and average rent in the commercial stock. If we look at the fixed costs, the isolated year has been a challenging period with high prices on tax-based costs, but through the effectiveness we have done, the drives of our properties have managed to keep up very well, which is positive. Here, of course, our work with optimizing our fixed energy use has played a large part. It is actually very pleasing to note that before the first half of the year, we have a surplus of 72.3%, which is record high for the company for this period. Then we have had quite stable rent costs, they have been stable for the second quarter, but lower during the first quarter, which then makes the management result increase by 23% compared with the same period before the year. If we go further to the long-term value of the substance, we can see that the positive development we have had in the value development of our properties since 2024 continues. During the second quarter, we have continued to experience stable demand for evasion of our property, which is followed by the fact that we have continued to make our properties more effective with increased cash flows, which means that we have a positive value development of .5% per quarter, and also that this contributes to the long-term value of the substance per share increased by .2% compared with the same period before the year. If we go further to our fixed value, then nothing has happened since the previous quarter. The number of apartments continues to increase to 4,325, and 82% of the now available area of ​​345,000 square meters is made up of properties. If we go further and look at our development projects, then our projects are running according to plan. As I just mentioned, we have signed a contract for design for our project geography book in Abramsberg. We estimate that we will be able to have a production start during the first half of the year, which is running according to plan. If we go further to the next project where things have happened, it is the EK-port in Lidingö, where Lidingö City has now decided to go out on a meeting with the details plan, and this is to be done after the summer semester. And then if we go further to the project landscape and the Pinsett in Abramsberg, then we have now completed all the documents, sent them in for inspection. The inspection here is estimated to take place during the autumn this year. And then the last project, the Helpslakta in the slaktus area, is status-related. Here we have also completed all the documents for inspection and sent them in, and the inspection is planned until November-December this year. So the total project portfolio continues to include 730 apartments. What you see on the screen is the care home that we have just signed a contract for design. The home is located in an attractive area in Abramsberg Bromma, with the big demand for care home sites. It is located in a good connection to public transport and the nature area. We already have a neighborhood in Bromma via rental housing, so this project develops for its own management. When it is completed, we will be able to integrate it in our existing management in the area. The project has been designed to make it possible to make an effective drive for care home. And we have done that by developing the home with two divisions per apartment plan. So in total, there are four apartments with the home. We are now investigating the possibility of possibly creating another apartment plan, so that the home would have 100 seats. We also have high environmental requirements in this project. We have previously adopted a science-based climate goal for John Madsson. Our goal is to reduce our climate impact from project to project, in line with or better than the industry. For this project, we have set a climate ceiling of 270 kg per bta. So that the project will be maximally raised to that level. Within the framework of design, we will also design the building and electricity with the settlement system and the environment. If you look at the housing and care home as a segment, it is an attractive segment from our perspective. We have a very high demand for this type of housing, and that has to do with the changed demographic. We see that the population of 80 years old will increase in power in Stockholm, which also increases the need for care homes. It is also a type of housing that completes our housing rights in our housing area, and it also helps to diversify our housing portfolio. Now I will hand over to Ebba.

Thank you very much. We will look at the results for the second quarter of 2025, where we show an increased selection result and a positive result. In the middle blue column, we see the results for the second quarter of 2025. The rental income for the period was 335.7 million, which is 16.9 million higher than the previous year. This is mainly related to the rental payments for the housing, but also increased commercial income compared to last year. We have an economic output of .2% at the beginning of the quarter. The cost of the rental is in line with the previous year, when it was 97.1 in Q2. Compared to the rental in Q1 this year, it has decreased somewhat, depending on the fact that more apartments are upgraded now. If we exclude the apartments where upgrades are made, the economic rental will receive .6% of the housing. On the cost side, we have the housing costs during the period, which is 1.1 million lower than the previous year. The lower the cost of the rental, the lower the Q1, combined with the effects of the energy projects. In Q2, the housing costs are higher than last year. This is due to price increases on water and waste, and the maintenance has also increased at a more sustainable level. This was very low in Q2 2024. The rental budget for the first half of the year was 242.6 million, which corresponds to an increase of 18 million compared to the same period in 2024. During the period, the costs for central administration increased to 28.3 million compared to the previous year, 25.5 million. This is slightly higher personal costs now, including a higher employee bonus than earlier this year. The financial net for the period is minus 106.2 million, which is improved by 5.1 million compared to last year, which is a result of a lower average rental level. At the bottom of the table, we see the average rent, which has decreased from .2% the previous year to .8% during the period. The financial net for the period was 108.0 million compared to 87.8 million at the end of Q2, which is an increase of 23%. The rental budget for the period increased to 2.1 times, and the surplus to 72.3%. The rental budget for the period was 2.2 times, and the surplus to 76.4%, which is a very high level for a single-use Q2, which is a happy result. We can now move on to the change in the housing value, which is shown in the blue column in the table. The housing value for the period was 14.1 billion, and during the year we have had investments in upgrades and energy projects, and the total investment was 112 million. We have unrealized value changes that go up to 171 million. The demand for the whole portfolio is 3.4%, and that has actually remained unchanged since Q1 2024. Some objects have received increased demand for the period, and the value change has been summed up to minus 29 million. The net profit in the portfolio has increased, mainly due to the rental budget for the housing and the effectiveness of the housing costs. In total, these changes have had an effect on the value development, with 201 million kronor, plus .2% for the period. These changes have resulted in a housing value of 14.4 billion kronor at the end of the period. Let's move on to the balance. In the blue column, we see the balance for the period of June 30, 2025. As we just saw in the previous picture, the housing value for the period of June 30 was 14.4 billion, and the output of Q2 last year was 13.6 billion kronor. The cash balance is 22.7 million kronor at the beginning of Q2, compared to 371.2 million kronor at the same period of the previous year, when a previous emission had been carried out. On the debt side, we have rental debt, which has increased to 6.8 billion kronor. The net debt is 6.7 billion kronor at the beginning of the period, and that is in line with the previous year. At the bottom of the table, we see that the rental rate at the beginning of the year is 46.9%, which can be compared to .2% at the beginning of Q2. The improvement in the rental rate is due to the increased housing value. The long-term value of the substance is 98.10 kronor per share, compared to 89.04 kronor per share at the beginning of Q2 2024, an increase of 10.2%, which is of course pleasing. We can look at the financial picture. At the far left corner we have the rental bond. 85% of our loans have a rental bond period that is longer than one year, and our average rental bond period went up by balance day to 3.3 years. We have a strategy to have a high number of rental insurance in the portfolio to reduce the exposure to volatility in the rental market and create predictability for the rental costs. Due to our low The green line shows the rental level for a secured volume, but exclusive credit marginals every quarter, and is not a forecast for the average rent in the total loan portfolio. During the quarter, the average rent increased from .78% per 31 March to .83% at the beginning of Q2. The upper left corner shows the rental bond in the portfolio, including unused rental loans. The credit margin is 2.7 years at the beginning of the period. The next picture shows the income. This table shows the current income on a 12-month basis on 30 July 2025, with the entire household savings per balance day. The income is calculated without a calculation for the income without determining the influence. The rental costs are based on the contracted income on the balance day and goes up to 669 million. This is a reduction of 2.5 million since the previous quarter, and it is due to the fact that more apartments are upgraded, especially in the project in Rotebro, but also here in Larsberg Lidningö. The income is 485.9 million, a reduction of 4.7 million since the previous quarter. The cost of rent and the cost of housing are based on the rolling 12-months' expense. The Q1 was a mild quarter, with the cost of rent being lower than the previous Q1. The Q2 is a quarter where the heating is not as big of a part of the costs. The increase in the price of water and other things in 2025 contributes to the increase in the cost of rent compared to the previous year. In 2025, we have also reclassified a post with a -in-MOMS for the cost of rent. The cost of rent is lower than the previous year, but the cost of rent is now reclassified, which is a positive effect on the housing administration. We also have repairs and maintenance, which were very low in Q2 2024 and have now increased to a more long-term level in 2025. The central administration is estimated at 52.2 million, which is the line between the previous quarter's income. The financial net is estimated at the average rate of net debt per day, with an increase in the tax of the property and the increase in the tax of rent. The potential rent on the same property has not been paid. The financial net was minus 213.6 million, which is a bit higher than the previous quarter, because the average rate in the portfolio has increased by 5 points. In summary, the management result of the income has decreased by 220.1 million in the previous quarter. The work to make the housing costs effective and to carry out the development project to create value continues, and this is also seen in the long-term trends from the past 12 months. With that, I would like to hand over to Per.

Thank you very much, Ebba. If we continue to look forward and what we will focus on in the next six months, we will focus on implementing our growth plan. When it comes to energy, as I mentioned earlier, we have made a decision on energy efficiency with a determined effect that corresponds to 13% of our total energy use. The focus here during the second half of the year will be to implement these projects. Here we will work broadly, partly with energy measures that reduce the energy use in our buildings, but also to create sustainable energy sources. The work to make our housing energy efficiency effective is not only good for reducing our housing costs, but it also contributes to reducing our climate impact in the company. Looking at the measures that we have taken to implement during the first half of the year, they have a determined effect on reducing the climate impact from the heating of our buildings with 390 tons of carbon dioxide per year. This corresponds to a quarter of our total climate impact from the heating of our buildings. So a large effect is expected in this area in the future. Then we will continue our work by scaling up the work with our upgrades. We will continue to work on our large upgrade project in Rotebro in Sollentuna, where we will be able to complete another 56 apartments during the second half of the year. In parallel with this, we will also prepare to start the next large upgrade project, which is Rotsunda, also in Sollentuna. It is a permanent property with about 245 apartments. We will be able to start this in connection with the completion of the Rotebro project, that is, in the year shift 26-27. Then we will move on to new production. We have previously informed that we have signed a contract for the design of the care home in Bromma. We will continue this work together with the entrepreneur group, which we signed a contract for design together. In this work, we will continue to see how we can optimize the economy in this project for the implementation, but also see how we can further optimize our climate impact for the project in the future. Here we determine that production will be able to take place during the first half of the year, 2026. If we look at the conditions of the housing market, several signals have come about rising vacancies in various housing assets around the country. This situation is far from homogeneous, where we see different conditions in different parts of the country. What has happened in the recent time that has affected the housing market is primarily the changed population growth, which has fallen back heavily, partly due to lower childbirth, but also reduced immigration to Sweden. In parallel with this, we have had an ongoing urbanization of the country for many years, where both individuals and companies are moving to large-scale regions. This is due to the fact that this changed conditions in the housing market will hit very different in different parts of the country. If you look at municipalities with no connection to the large-scale regions, they will probably experience even declining populations in the future, which will of course also affect the vacancies. If you look at the large-scale regions, they will, due to the ongoing urbanization, continue to have a population growth and very low vacancies. In this, Jörg Matsson is very well positioned with our housing in the attractive areas of the Stockholm region. If we then go in more in detail and look at Jörg Matsson's conditions in the geographies where we are, one thing that is important to look at is the willingness to pay for our housing compared to our average rents. In this graph you see the willingness to pay, which is the stack in this diagram, where the dark blue stack shows the willingness to pay for the succession of the properties, that is, for our older housing. The scrapped parts of the stack shows the bonus that the guest wants to pay to move in and produce. This is compared to our average rents represented by the pink and blue lines. The pink lines correspond to our average rents for succession properties and the blue lines are the average rents for our new production. What you can see in this picture is that the willingness to pay for our geographies is significantly higher than our average rents. This is a consequence of us acting on a regulated rental market, but it is also a consequence that we have a high rent potential in our stock, a rent potential that we can realize by upgrading our properties and thereby also increase rents. It is also a potential that we can benefit from in new production, where we have a good economic feasibility in our projects. Projects that normally require rents of -2,700 SEK per square meter to be able to get economic feasibility. The low risk of vacancy is also reflected in the average rental time, which is about 10 years. As we mentioned earlier, the situation is not homogeneous around the country, but we have also chosen to show how it looks in what we call a reference area, where you can see typical municipalities without a connection to the major cities. There you can see that the willingness to pay is significantly lower than in our areas, which means that it is difficult to upgrade properties and also be able to increase rents, since you then risk large vacancies. And there is also the fact that it is not possible to build new, since the willingness to pay is not sufficiently high to get economic feasibility in the projects. If we then look forward to how we see this willingness to pay develop, we have taken help from an evidence analyst, to be able to predict how we judge the willingness to pay for our geographies, where we are, that is, when the stock is going to be developed in the future. So in this graph you see both the historical decline in the willingness to pay in Stockholm, but also the prognosticated development. This is in real prices, which means that inflation is to be put on from the actual development. What you can see if you look forward is that the willingness to pay is being judged to continue to develop very positively, in this case by .5% in the coming years. This is driven by the real income increases that many households will have, which will also increase their purchasing power in the future, which in turn also leads to the willingness to pay more for their housing. Summary can be said that Jomadsson stands very stable in this divided housing market. If we are to sum up the quarter, we can see that we continue to deliver a strong result in line with our growth strategy, and that we have also taken the next step in our growth plan with a return to new production, and that we are finally strong in our position in the Stockholm region, which gives us competitive advantages in a divided housing market. With that we want to open up for questions.

During the Q&A, the participants can ask questions by pressing square 5 on their phone. If you want to return your question, kindly press square 6. The next question comes from Kevin Chirvanpour from SEP. Please go

ahead. Good morning. I have a few questions. The first question is about the purchasing power that you explained. What drove the lower margins? Could you say something about the forward-looking margins? Are these cost levels representative even in the future?

As I mentioned, there is a very large leverage that we can use to further reduce our costs. It is the ongoing upgrade projects and the ongoing energy optimizations. Typically, when we upgrade our facilities, we can reduce the cost by about 20%. As mentioned earlier, we have decided to implement energy optimization measures that are estimated to reduce our energy use by 13% in the future. This is a project where in large part the numbers are not yet visible. This is what is talking about the ability to continue to effectively reduce our costs. It is also challenging. We cannot answer exactly what the price increases will be, especially in the tax fund. In the last two or three years, the price increases have been very high, but we have managed to keep up. This can be summed up by the fact that we see that we will be able to keep stability in our basic costs from above.

What do you think is an achievable -meta-marginal, given your focus on investments, and to reduce costs and the

like? We deliver small prognoses on excesses. What we are doing now, also linked to how we assess whether the rents and revenues will increase in the future, is that our goal is to strengthen the excesses in the future.

I also have a question on the finance network. The average income has increased in the quarter. How do you expect the underlying income to develop, given the structure you have, and also the assumption that you will increase your investments? Maybe we can hear something about the new debt conditions.

If you look at the development of average income, we have already shown how our return portfolio looks. There you can see that the average income in the income-safety portfolio will increase. However, we see that the market rates have fallen back, and that we have also calculated a lower rate of movement than what we experience now. If you combine these two, from what you yourself assume is the market rate development, you get a good picture of how our average income will develop. When it comes to our margins and when it comes to the rents, we cannot speak of individual conditions, but we can, however, guide that we experience that we have gone to the box to the conditions that were met before the macroeconomic conditions and the conditions on the financial market changed in 2022. There, we usually guide ourselves that the housing company can borrow to a margin of around 170.

I have a question about the new housing in Bromma. Is there any indication of how big investments will be required in this project?

Absolutely, we have begun to look at these pieces, but it is too early yet that we want to talk about it. We will carry out design here in the second half. What we can talk about is that we will fulfill our goals when it comes to project margins on this project, from what the conditions look like at the moment. There, we are somewhere with a goal of reducing the project margin by 10%. Then we will see how it develops now when we continue to optimize the project in the design phase. A total investment can be somewhere around 4-500 million.

My last question is about financing your project and renovation. Will you try to increase the salary or how will you finance all these investments?

We will need to raise our debt in the future. This is part of our plan. When we initiated our focus on growth in 2024, we initially focused on investments in energy and upgrades. We see good profitability and high investment margins. This has made our world of the property rise as a result of these investments. We have now free capital where we can loan and finance the property. This is the normal model for the property business. It is very positive that we have achieved this value development, which means that we can invest in the future.

Thank you very much.

Next question comes from Erik Granström from Dienvikanegi.

Thank you and good morning. I had some additional questions. The first is about the negotiations for next year. I understand that you are ready for 2025. Per, could you tell us how the considerations go for 2026 and what indications are there? What do you think the negotiations will be about next year?

We have previously made a prognosis. It was before the year's housing negotiations. We saw that if the historical connection between inflation and rents should continue, we need to have rent increases of 4% per year to get the inflation debt from 2022. We also thought that it would land at ,3% in the next three years. Now the year's rents are -5,3%. It was close to what we estimated. Next year it will land between ,5-4%. These are indications from the two years agreement that was signed. They saw both 25 and 26 years of rent adjustments.

Thank you. Does that mean that when you evaluate the properties, when you make external or internal assessments, is it -4% increase in rents you count in the valuation calculations? Or is it another number?

Our evaluators judge which rent increase they think will happen. We have 75% of our internal values every quarter. We reflect their assumptions. The evaluators are usually conservative when it comes to which rent adjustments will happen. Until they see more concrete evidence towards the end of the year. More than that, they can not guide.

This means that the 5% that was for this year, that has been taken into account. It is history. But what you are talking about next year, is not what is in the valuation calculations today.

That's right. It is our own prediction. Very good.

I would like to ask about the rate of payment. It came in at 47% in Q2. The target is under 50%. How do you balance this? Given your investment needs, would you sell something to continue financing investments? Or do you think that the running income and the financing on the market is enough to continue with the investment package you have?

We see a very positive sentiment when it comes to lending in the banks. We do not see it as a flask for the investment plans every day. That said, we can still use active portfolio management as a tool. Partly to free capital for investment, but also to be able to exchange ready developed assets to be able to acquire assets with new development potential. Alternatively, to start a new production project. It is also a way to transform the portfolio into a more attractive one. Rather than to free capital for the growth plan we have.

Thank you. My last question is about the housing in Bromma. Could you tell us how the rent agreement looks with AMBEA? That is one part. The other is, when you design it, what do you see as the finishing touches? You hope to be able to start H1. How long do you expect it to take? Both depending on if it will be 80 or 100 units.

Unfortunately, we cannot make a statement about the agreement with Vardaga. However, it is a little different the rent on our care home compared to the usual commercial properties or housing. The rent is set per place, per day of care. There is a underlying connection to the number of square meters, but you can also optimize the surface, which is to optimize the economy in the project. When it comes to the time, we have said that we have the ambition to start the project in the first half of next year. We have to keep in mind that the production time is about two years. Which means that we are in the 2028 for completion and probably the second half of the year.

Okay, very good. Thank you very much. That was my questions.

Thank you very much.

As a reminder, if you want to ask a question, press square five on your phone. There are no more questions right now. So I leave the floor to the speakers for any final comments.

Thank you so much for being with and participating in today's presentation of our quarter report. We will then present our part report for January and September, October 23. So then we'll see you here again. Thank you for today.