K-Fast Holding AB (publ)

A warm welcome to our presentation of Bokslutskommuniket for the year 2024. 2024 was the year of change, while we are still struggling with a tough market climate, but where the market has stabilized and also started to turn up, and you feel that there are conditions for spring to come in the real estate industry, not least for housing and housing production. The biggest event during the year was without a doubt our deal with Brinova, which we presented in December, where we made an agreement to cancel our property portfolio in the region south with a total property value of 10.8 billion. Payment occurs in the form of newly-emitted shares in Brinova, where the property owners will go up to at most 58.4 percent, which makes us the largest owner after the transaction. The exact number of shares that K-Fastigheter will hold is dependent on the relationship in the annulled portfolio after the transaction was carried out on the day of entry on April 1, 2025. Vinnova will be consolidated in K-Fastigheter's issuance and will thus be a subsidiary company. Through the transaction, new Brinova is created, an important property with a focus on housing in the Öresund region. Through the transaction, new Brinova also provides better conditions for increased income, among other things through the overlap that exists between the stock in the region of Synd and the current Brinova. It is a scale advantage, and we assess that K-Fastigheter will be able to get a greater economic development on ownership in Brnova than only ownership of its own stock in the region south. A larger company with higher stock value and, in the long run, given a more diversified base of owners, is expected to provide higher liquidity in the stock market. more attention from the capital markets and that, in the long run, conditions are given to include large-cap as well as asset-related stock indexes, such as EPRA. I can also note that through the transaction, K-Fastigheter increases the recognition capacity within the administration of completed properties by about 15%, based on the company's results on September 30, 2024, and K-Fastigheter's ownership in Brnova by 58.4%. In addition to the big deal with Brinova, we have, during the spring of 2024, presented a new business plan that extends to the end of the year of 2028. An essential part of the new business plan is to start building 1,000 apartments per year, with successive development until 2028, and where we, at the beginning of 2028, have as our goal to deliver 450 per share as a result of our entrepreneurial activity. In order to make that goal possible, and increase the degree of self-financing, the decision was made to remove stocks for the purpose of reinvesting in new projects. Already in the half-year period of 2024, we left a portfolio in Copenhagen with a property value of 1.1 billion SEK for the buyer Viga Real Estate. To remove assets is now a part of the daily life of the new business plan. We have initiated the process to remove other parts of the remaining portfolio after the business with Brinova. During the year of operation, we started building 928 apartments, which we will put in relation to the fact that we only started building 450 apartments during 2023. In administration, we have a very hard and dedicated work to reduce our vacancies by a grain of salt, where the turnover rate at the start of 2024 rose to 96.4%. to be in relation to 91.9% at the start of 2024, when the hard work was in full swing and we started in 2025 with a continued positive net purchase. Our substance value per share rose to 25.23 kronor at the start of the year, a positive growth of 4%. The entire industry, including us, has gone through a couple of challenging years, but we have passed it and we see that brighter times are coming. During the year, as mentioned earlier, we have launched 928 apartments in relation to the 450 in 2023. During the last quarter, we launched a project in Lund of 72 apartments. A project that we are starting on the property rights calculation, but sees a significant upside in being implemented as housing rights in the future, closer to completion. This will be a typical approach in housing and family and a strategy to survive the new business plan. All projects start at a credit rating where our internal demand for a yield on cost of 6% remains. This means a direct discount in relation to the project cost, which goes up to at least 6% at the start of the project. When the completion is closer, an assessment is made of what form of approval maximizes the project's profitability. In general, the start of the year has taken place in a slightly larger number of cities than what we had previously built in, where we assess access as more liquid at the end of the year. In total, we have, at the beginning of the year, 2,052 properties in ongoing production, divided into 18 different projects. Our entrepreneurial activity has gone through a tough period, where we ourselves, to a certain extent, started a project with the purpose of keeping up with the workload. Now we are starting to fill in the order books in Prefab with a greater proportion of external customers, which is incredibly pleasing. At the start of 2024, the order stack increased to 1,056,000,000 SEK in prefab, where about two-thirds of external customers in housing, defense, social housing and infrastructure are located. Even after the change of year, we have managed to get new orders, which starts from good employment during 2025 and forward. In the construction business, since our concept house, we had at the beginning of the year 2,052 apartments divided into 18 projects with a recurring order value of 1.97 billion, that is 52% higher than the order value of the corresponding figure at the beginning of 2023. At the end of the year, the project development portfolio consisted of nearly 1,900 apartments in different stages, of which almost 700 are in the construction process. Finally, we delivered a gross profit of close to SEK 400 million, which is SEK 17 million less than in 2023, but which marks the bottom in relation to what we see ahead of us. In the area of business administration, the number of apartments under administration increased to 4,985, correspondingly plus 2%. This despite the fact that we, in connection with the half-year shift, fronted a larger portfolio in Denmark. We are starting to see that all the hard work starts to bear fruit, and I can't thank all those employees who have worked dedicatedly and purposefully to close vacancies and reduce costs in our administration. Thanks to this fantastic team, we leave in 2024 with an economic output of 96.4%. This is compared to the current balance, where we were up by 91.9% in terms of sales. As a result of the improved sales, the turnover increased from 64% to 66.5% during the year and the turnover increased to 135.1 million. We have continued to have positive net rentals and are working hard to improve the rate of rentals even more. We are not trying to get to zero. In our world, every holiday is a failure and an income we cannot get back. But with hard work, we can make sure that we do not lose even in the future. The rent increases from 2024 to 2025 fell on an average of 4.4% and the absolute majority of the increase was settled already from January 1st. I can also note that the transaction with Brinova increases the future payment capacity within the management of completed properties by about 15%, based on Brinova's results per the third quarter of 2024, and the future ownership of K-Fastigheter in Brinova by a maximum of 58.4%. And with those years, I would like to hand over the order to Martin.

Thank you, Jacob. Yes, 2024 was an eventful year. It has also been a year with a clear division between the first and second half of the year, where the conditions during the first half of the year were really difficult and were characterized by high vacancies, high interest rates, low demand in our prefab business, while the second half of the year was much brighter with successive increasing emissions and thus higher surplus rates, lower interest rates and significant order growth in K-prefab. Thus, the result has also been improved over the year. Throughout the year, we have also continued to start new projects, successfully reduced the loan and now also improved the interest rate. But in order to prevent the events in advance, we start with our administrative work. The rents increased during the year from 26% to 603 million SEK. This despite the fact that during the summer we sold a Danish portfolio of 311 apartments with a rent value of 64 million SEK. By the end of the year we had 4985 apartments in administration with a total rent value of 679 million SEK. The exit rate has gradually increased during the year from 92% at the beginning of the year to 96.4% at the end of the year, and we have thus proven that we were able to reduce the vacancies that arose in connection with the fact that we moved into almost 1,000 apartments around the year 2023-2024. This, together with more managed apartments during the year, means that the exit rate has increased from 64% to 66.5%. Even if the market interest rate has gone down during the fall, the financial net has continued to deteriorate, which primarily depends on increased interest-bearing debt related to more apartments in the administration. The financial net decreased by a total of 34% to minus 243 million. Despite this, our administrative asset growth this year increased by 20% to 135 million, which primarily has to do with the fact that we have come to an agreement with the issuance rate in the stock. The net sales per share rose to 0.55 kronor per share and considering the development in terms of spending and the interest rate during the first half of the second half of the year, it speaks a lot to the fact that this is a level we will hit in 2025, even if it is now in line with Brnova. Värdeförändringen för färdigställda förvaltningsfastigheter uppgick för året till minus 159 miljoner och påverkas av realiserade värdeförändringar om minus 220 miljoner, vilket primärt beror på nedskrivningar i försäljningen av den danska portföljen. Orealiserade värdeförändringar uppgick å andra sidan till plus 61 miljoner, primärt påverkat av högre än förväntade hyresöjningar inför 2025. The year-end income for our finished properties has increased by 4.4% and has increased by 0.15% during the year on individual property levels. The entrepreneurial business has had a tough year, but is going strong into 2025. The construction of Koncepthus has been affected by the high completion rate at the end of 2023, which has meant that in 2024 we have had a relatively larger proportion of projects in the early phase of the project, where the employment is relatively lower. Income in the construction business rose to 1.36 billion, which is a decrease of 23% compared to 2023. However, we have started building more than 928 apartments during the year, and for the number of apartments in the building at the end of the year, we have built 2,052 apartments, which is a record high level. The remaining value in the ongoing building has also increased during the year from 1.3 billion to 2 billion at the end of the year, or a total of 52%. Unrealized value changes in our building and concept houses increased to 302 million during the year, and the direct demand for our facilities during the building was 4.3% at the end of the year, which is the same level as the previous year. The fact that the direct demand has not increased further primarily depends on the fact that we are building in better and better conditions, as Jacob mentioned earlier. Our prefab business is perhaps that part of our total business that has seen the biggest changes during the year. From a spring that was brutal and that was based on the negative wave of totally stagnant construction data during 2023, to an autumn that has filled the order books significantly before 2024-2025. The revenues for the year amounted to 494 million, which is a decrease of 16%, but the order book for 2024-2025 amounts to 1.1 billion. The total net profit for the enterprise area is 285 million, including mentioned unrealized value changes, of 302 million, which corresponds to 1.16 kronor per share. The order is spoken in clear language. The year's predictable result level will not be repressed in 2025. At the company level, we deliver a result of SEK 75 million, compared to over SEK 400 million for 2023. Noted at the company level is that central costs increase to SEK 12 million, or over 22%. However, the increase is primarily related to the fact that we have successively lifted costs from dot-com companies to fashion companies, and then distributed the costs to our business areas based on exploitation. Through this distribution, the cost increase is more modest. We can also note that the interest rate has improved during the quarter and from being down to 1.5 on the 12-month roll during the year, we ended the year at 1.6. It is primarily the positive development in the administrative business that affects the development at the end of 2024, while the development in the entrepreneurial business has the potential to lead to further improvements during 2025. Vår finansiella ställning har stärkts något under året och både soliditet, skuldsättningsgrad och belåningsgrad har successivt förbättrats. Primärt beror detta på fortsatt hög byggnationstakt, stabilare utveckling i marknadsvärdet på våra fastigheter och löpande amortering av våra räntebärande skulder. Värdet av våra förvaltningsfastigheter uppgick vid årets slut till 15,6 miljarder vilket är en ökning för året med 5%. Ökningen är primärt förknippad med pågående nybyggnadsoption som ökat från 1,8 till 2,3 miljarder eller 31% vilket i sin tur beror på den redan nämnda ökade aktiviteten i byggverksamheten. Ökningen i färdigställda fastigheter är mer modest sett på hela året. Värdet av färdigställda förvaltningsfastigheter uppgick vid årets slut till 12,6 miljarder, en ökning med 1%. Vi ska dock ha i åtanke att denna för K-fast del relativt modesta förändring är starkt påverkad av försäljningen av den danska portföljen och andra fastigheter om totalt 1,2 miljarder, vilket till viss del döljer att vi investerat hela 1,5 miljarder i ny tid- och ombyggnation under året och bland annat färdigställt 425 lägenheter. Revenue-bearing debt has increased by 2% to 10.3 billion SEK during the year, where the increase in completed properties takes up more of this increase. The value of our derivatives instruments has turned sharply during the year as long interest rates have fluctuated and in total it has dropped. The value change for the whole year is approximately minus 60 million SEK and the value of the derivative portfolio increased at the end of the year to 40 million SEK. Solidity increased by 30.4% this year and the debt rate to 59%. The available liquid funds, including the undue credit frame, increased by over 160 million. The long-term substance value increased by 7% this year to 6.2 billion, or 25.23 kronor per share, which is an increase of 4% when we talk substance value per share. A little short about the company's financing, it is relatively unchanged during the year. However, it will be greatly affected by the sale to Benova, because we have already begun the development of parts of our derivative portfolio in December. In total, we developed a derivative of 1.9 billion under December and managed relatively well to time in an upward movement in the long-term interest rates. As a result, the interest rate drop to only 54% during the change of year. Further, both capital and interest are affected by the upcoming deal with Brilova, where we are successively adapting to a changed financial situation. To sum up, 2024 was an eventful year with two sides. One dark and one bright. We can hope that there will be more light than dark periods in the future. A lot of emphasis on that, at least in the near future. Högre uthyrningsgrad och lägre räntor i förvaltningsverksamheten och ett starkt orderläge i bygg- och prefabverksamheten borgar för god resultatutveckling framöver. Lägg därtill förbättrad finansiell ställning med stärkt soliditet, räntetäckningsgrad och lägre belåningsgrad och vi är ute i solskenet igen. Moreover, we are looking forward to an extremely exciting business with Brinova that we will have reason to return to. Here I would like to make you aware that we will return with complete information in short. This will happen through a separate press release and the content will include combined financial information for K-Fast and Brinova. Keep an eye out! And with that, I would like to thank our listeners and hand over to Jakob to end today's presentation. Thank you!

Thank you, Martin. In summary, we need to turn to the better, even though there are still some challenges on the way. But we strive to become a little better and stronger for every quarter that passes. The workload increases in entrepreneurship, and we are working hard to increase efficiency and speed for new, higher volumes. In the administration, it is being worked on to reduce the vacancies and costs in order to achieve a stronger result, and where also implemented interest rates during 2024 is a welcome addition. Our deal with Brunova became the largest property transaction in Sweden during the whole of 2024, and I look forward to you all seeing what nice effects it will make possible for K-Fastigheter and our shareholders. Om ni har sagt vill jag tacka för ert visat intresse. Har ni eventuella frågor så är ni välkomna att ställa dem per e-post till ir1k-fastigheter.se. Tack för idag!