K-Fast Holding AB (publ)

A warm welcome to our presentation of the first quarter of 2024. I would like to share the very positive news that we have just entered the stock market agreement on the completion of the Danish portfolio of 311 properties. The same portfolio that we notice that we have entered the declaration of sale. The positive news, despite the conditions on the market, is still tough for the construction and housing sector. Even if we can guess a certain ease and where a first reduction in rent does not feel too far away. At the same time as the conditions are tough, we know that there is a great underlying need for new housing in Sweden. To be active in housing construction and management has therefore clearly the future ahead. The Board has adopted a new strategy and business plan to best create shareholder value under the market conditions that are advisable and expected to be advisable during the coming five-year period. The Board, the K-Fast Holding AB, has adopted a new business plan for the period 2024-2028. The above goal is to achieve value of 50 kronor per share at the end of 2028, to be compared with 24.17 per share at the end of the first quarter. The Board has also adopted new financial goals and risk restrictions. The business plan is a shift of strategy. From previously only built for self-management and long-term ownership, except for what the prefab business delivers to external customers, now part of what is built is sold to external customers. The purpose of this is to support expansion and self-financing. A change can happen to individual properties or portfolios that are newly produced from existing assets, alternatives such as forward funding or housing rights. Then we will never start a project without using a rental right calculation. To make it clear that K-Fast is significantly more than a real estate company and has external customers to complete projects, as well as to large entrepreneurs, the business will be divided into two business branches, real estate management and entrepreneurship. In entrepreneurship, the new business areas will be project development, prefab and building to be collected. The goal is to deliver finished properties based on our own concept house, as well as high-quality storm solutions. The business branch of real estate management will, through effective management and high degree of participation in the concern's real estate, with a focus on properties, contribute to stable and long-term cash flows. The division in our strategy is to make visible the value created outside the management business. The business branch, which has been named entrepreneur, has responded to 84% of the concern's results by removing value changes and completing real estate and derivatives since the 2021 business year, when prefab became part of the K-Fast family. The corresponding figures are 82% during the period 2019 to 2023, which is the period when the previous business plan was in place. The change in the organization should be able to reflect in the value-making of the real estate owners. The business will be operated independently under the concern's umbrella. In addition to the fact that we have adopted a new strategy and business plan that I have just mentioned, the quarter has been successful and we have worked on strengthening our balance. Sometimes we carried out a new emmision, where we used the remaining mandate from the 23rd year of 5.8 million biactuals, and we decided to emit an additional 842,000 biactuals which added 126 million to the company's emmision costs. It is notable that the emmision was carried out on a closing course without a discount, which we see as a sign of strength. In the track of strengthening the balance, we have from 32 preschools and one LSS resident and signed a contract to cancel 20% of our share of property in the Mjøbøg center Prenat. As I mentioned earlier, we entered an agreement during the quarter to deviate the Danish portfolio through 311 apartments to an institutional investor, which we are now happy to share by passing an auction agreement, where the underlying property value is 1.1 billion and where the expected profit is at the end of the second quarter. During the quarter, we have started two very nice and economically strong projects. One in Göteborg on Smörslottsgatan with 173 apartments and one in Västerås in the Viksäng area with 168 apartments. We have divided them into five housing units. In total, we have 341 apartments in our first quarter. Smörslottsgatan in Göteborg is a market that we know well because this was our third project in the same quarter. We own and manage already 300 apartments in the same address. The fact is that the Vårdgård with Omnägd will be our largest administrative unit within a few years, considering both the value of the property and the rents, given that the project we have completed and planned to start during the year is being implemented. At Entreprenad, we are currently actively working with construction law applications for no less than 1,250 units of the 2,700 buildings we are currently controlling. All to have as good a relationship as possible in our project bank. During the quarter, we have completed 160 units and started 340 units of construction. We had no less than 1729 apartments in total at Entreprenad in ongoing production, divided into 16 different projects. Moreover, we had 75 ongoing large-scale enterprises in Prefab We have previously reported that the order in the business of Prefab was unbalanced during the year, with lower conditions during the first half of the year, while the second half of the year of production levels were similar to what was possible before the market went down. The trend with a change in production levels is clear, and during the second quarter we have managed to land two larger orders. One to NCC, where we deliver private and belonging to Entreprenad, to new education and storage facilities for the defence in Halmstad, as well as an order to NOCCON to deliver a complete private Entreprenad for new production and housing, locations and parking garages in Nacca, to an order value of 120 million. The future looks positive in Prefab, when we get through the first half of the year's lower conditions. We are proud of all the organisations that have managed to fill up the order books in a short time, when the housing market has been put in a real situation, to the extent that today many exciting projects in defence, infrastructure and social properties are involved. For the first three months, we are delivering a positive gross result of 159 million kronor in the Entreprenad business sector. The administration has continued to work hard to reduce the degree of vacancy in the quarter. Despite this, we are still dealing with influx vacancies in some completed projects, but in total the work is going in the right direction. In administration, we have had the opportunity to start to ask for parts of the influx vacancies that were created during the last quarter of 2023, completed over 800 apartments. The economic vacancy rate was .3% in the quarter, in relation to .9% in the quarter of 2023. During the first quarter, we have a positive net vacancy of 144 housing contracts, but there is a certain gap between signed contract and influx. The corresponding number, the day of this presentation, is 205 contracts in positive net vacancies. I would like to point out that we have an attractive housing stock where 66% are produced after 2020 and where 88% are produced after 2010. We are looking at a very effective and attractive stock where all the properties are again in a A or B-mode, With that said, I hand over the floor to Martin.

Thank you, Jakob. As Jakob has said, we will hand over our business in two segments or the business area. Housing management, respectively. When I now go through the results for the first quarter of 2024, I will therefore leave a respective segment to end up in the concern. We start with housing management, whose business in large part is related to management of completed management properties. The rents during the period rose to 147 million kronor, which is an increase of 28% compared to the corresponding period of the previous year. The increase depends on several managed apartments during the period compared to the same period of the previous year. At the beginning of the period, we had 5,037 apartments under management, an increase of 31%. The rent value at the end of the period rose to 686 million kronor, which is an increase of 36%. The net profit increased by 20% to 88 million kronor, and the management result decreased by 18% to 25 million kronor. The surplus rate increased by 60% during the quarter, which is an increase of 64% compared to the same period, 2023. The reason why we do not see an increase in rents and the rent value fully in the result is primarily due to low average rents and higher rents compared to the corresponding period of the previous year. If we start with the average rents, the rate was 89% compared to 95% of the same period of the previous year. This is the big influence at the end of 2023 that gets through. We, however, decrease the success rate of our vacancies and the rents improved during the period from 92% at its entry to 93% at its exit. The rent costs have increased by 46% compared to the corresponding period of the previous year, which primarily depends on increased rental debt compared to our completed management assets as well as increased underlying base rent. The value changes for completed management assets increased for the period to minus 153 million kronor. The market value of our existing management assets is relatively stable at the moment, with the smaller reduction of the values during the first quarter, which is followed by a general increase in the direct demand for vacancies in our valuations with about five base points. At the same time, the expected rents increase during the period based on, among other things, the difference in the difference between the owners of the rental market. The value, despite this, decreases by 153 million kronor during the quarter, primarily depends on the decrease in the market value in the previous and ongoing transactions, where the sales of the Danish portfolio is the most important and affects the value changes during the quarter with about 100 million kronor. Finally, the management results per share increased for the period to 0.11 kronor per share, a result we believe will be improved successively during the year in the course of improved sales and surplus. If we now move on to the business sector, I will first start with a comprehensive summary of what is included in this business sector in the future. Here we collect our business areas in project development, prefab and construction. The revenues in the segmental management include all revenues in the business sector, including sales to external customers, such as construction of concept houses to the business sector, property management, as well as the successive profit calculation in ongoing projects. However, the result of the concern's results is eliminated in the internal sales of the concern and the successive profit calculation is classified as unrealized value changes in management facilities. Businesses that include revenues and debts include in the segmental management excess of revenue and debt in prefab and construction, also revenues and debt related to ongoing new construction, such as the value of ongoing new construction of management facilities, the value of construction rights and debt related to construction and acquisition of construction rights. This classification is made to make clear what activities are happening within the business sector and what economic access should be linked to them. Based on the segmental management, revenues for the business sector increased by 453 million crowns during the period, which is a minimum of 29% compared to the corresponding period. The revenues have been affected by the weaker construction that has hit hard on prefab businesses. Sales to external customers have been more than halved since the corresponding period and increased for the period to 78 million crowns compared to 175 million crowns in the same period. However, the order situation is good for the autumn, not least because we have received a number of orders for housing construction and delivery to the defence market. The outstanding order value increased at the end of the period to just under 1.1 billion compared to 0.7 billion at the beginning of the same period last year. The construction of concept houses has continued to be stable, even if it is somewhat lower than last year, which primarily depends on high completion time at the end of 2023. At the end of the period, there were 1,729 new buildings and 341 buildings were built during the period. For the period, the revenues related to the construction to 375 million compared to 465 million for the same period last year. In the segmental report, the amount is included for the period's successive revenue calculation in the ongoing renovation of 148 million compared to 85 million for the corresponding period last year. The increase here depends primarily on construction projects during the period. During the period, the business area has received a positive contribution from the result to interest companies and primarily the result is the environment-based entrepreneur, which in total affects the result for the period with about 10 million compared to a negative result contribution of 3 million for the corresponding period last year. The result for the value changes, but including success in revenue calculation in the ongoing renovation amounted to 140 million crowns for the corresponding 0.58 crowns per share. The result is expected to be improved during the year in time with increased external sales in our prefab business and further construction projects of Conceptus. So, on to the concern, where I for clarity this time put in an elimination column where you can see how the successive revenue calculation in the entrepreneur is eliminated at the concern level and classified as a miscalculated value change on the management firm. In addition, I can mention that in the category the remaining segmental report the concern's common revenues and costs are provided primarily compared to the business in the holding company. Of the concern's central administration costs of 17 million, 13 million has been distributed in the business areas during the period. The revenue calculation rate, which is shown to be exceeding the concern in the following 12 months, was increased at the end of the period to 1.6 to compare with 1.7 at the end of 2023 and 2.1 a year ago. The key figure is expected to be improved successively during the year in time with the management result in the business areas of the holding company respectively the gross result in the business areas where the entrepreneur is improved. The result of the period was at the concern level to 35 million kronor, equivalent to 0.15 kronor per share, which should be compared with a loss of 196 million kronor for the corresponding period of the year. If we continue to look at the concern's financial position, the value of the concern's management firm has increased by 3% since the year change to 15.3 billion kronor. The value is divided by 12.8 billion for finished properties, 0.6 billion for unpaved land and construction rights and 1.9 billion in ongoing renovation, where the two last mentioned categories in the segment review are reviewed during the business area of the entrepreneur and the first mentioned during the business area of the management firm. The increase during the period is primarily due to the renovation of management firm and the impact of the value change has been totally marginal. The rate of debt during the period has increased by 2% to 10.3 billion, divided by 7.1 billion for finished properties, 1.9 billion in construction rights and 1.2 billion in ongoing and construction rights, where finished management properties in the segment review are reviewed during the business area of the management firm and construction and construction rights primarily during the business area of the entrepreneur. The increase is primarily due to the completion of management properties, and the rate of debt during the period has decreased from .2% to 59.7%, primarily due to the renovation and, among other things, the repayment of the sales revenue for the acquisition of K-Prefab. The rate of debt for finished properties has been stable during the period. Own capital increased during the period to 5.3 billion and the concern reviewed its solidity by 30.3%. Long-term capital increase to 5.9 billion in contrast to 24.17 crowns per share, which is a marginal reduction since the year, has had a positive effect on the results of the period and a negative effect on the expenditure in the new investment. We move on to the concern's financing and credit key. I have already mentioned the development in the debt of the pensioner and how it is distributed. During the period, we have not increased our pension insurance, partly because we secured a relatively large share at the end of 2023, where the long market rates were low, partly because the long market rates have increased successively during the period. The rate of debt increased during the period to 13% compared to 9% at the beginning of the year and 21% at the end of the corresponding period. The average income increased to .38% compared to .22% at the beginning of the year and was primarily affected by the conversion of the building loan to long-term financing, where the converted loans are converted to a real interest, which is currently about 5.5%. The interest bond was extended at the end of the period to 3.2 years and the capital bond to 2.7 years. We do not keep our internal limit-based pension tax rate at the end of the period. However, our view is, as I have mentioned earlier, that this is temporary and that the key figures will improve as the amount of expenditure increased and the management results improved in the business management and financial management, and increased external sales improved the break-in result in business as an entrepreneur. I would also like to point out that we continue to hold all our financial agreements against our lenders, with which we have a good dialogue and where we see a successively increased willingness to lend during the period, among other things in the form of new building loans at good levels. In summary, I would like to return to our presentation of the -end-communication a few months ago, when I commented on our failure in 2023, which is a dark year with negative development for both our industry and that it was nice to leave that year behind us. However, we already had a glimmer of hope and I used the word that just before the plowing, it is the darkest. I think we are still there. Perhaps not everything has gone as fast as we hoped, but we can definitely sense the glimmer in the east, even if that little moment just before the sunset in the horizon took a little longer than we thought. But we know that the glimmer will come. And with those words, I thank the listeners and leave it to Jacob to finish today's

presentation. Thank you, Malting. In summary, the first three months of the year have started intensively, and where we can communicate with new strategy and business and the organization's all members on a daily basis work with a clear way. We have a clear strategy to follow and to be able to live up to the new offensive goals that have been set up, but which I find highly realistic. The work to strengthen the balance is done on a number of fronts, and there we have, after the period's outcome, taken several important steps in the right direction, and where the exchange of the Danish portfolio is such a step, our two business branches, entrepreneurship and management, the light in the tunnel and a recovery is to be expected after a long time of tough market conditions. And with that said, I would like to thank you for showing interest, and as usual, you are welcome to ask any questions to -fastheter.se