K-Fast Holding AB (publ)

A warm welcome to our presentation of the final communique for 2025. My name is Jakob Karlsson and I am the CEO of K-Fastigheter. 2025 means the start of a transformation journey in and with our company Brinova. The business where we sold about 75% of our administrative assets, mainly in southern Sweden, and got paid in shares, is a reverse acquisition. Where we now control 57.6% of both capital and votes in Brnova. Therefore, Brinova is a subsidiary. Our long-term goal is to share Brinova with our shareholders, and as a way to do this, Brinova, after Polen's exit, has chosen to start the process by notating the A-currency. Vårt mål är att skapa ett större fastighetsbolag med tonvikt på hyresbostäder i Öresundsregionen och i södra Sverige genom Brinova. Och där K-Fast Holding efter utdelningen ska vara en ledande aktör inom projektutveckling och entreprenad. Vår absoluta övertygelse är att K-Fast inneboende världen kommer synliggöras betydligt bättre i två separata bolag som respektive har tydligt fokus inom sin nisch. 2026 will mean a continuation of this transformation journey that we will hopefully be able to complete during the business year or in near completion afterwards. The purpose of our transformation journey is that we will continue with access sales to strengthen our balance sheet and thus reduce our debt. which we will prioritize to maximize business volumes, such as project launches. Nevertheless, we plan to have quite a few project launches by 2026 in order to be well-equipped to focus on increased profitability and volume by 2027. During the business year 2025, we have carried out three larger sales, which together add up to approximately 1.1 billion in liquidity, and during the business year we held approximately 590 million kronor. The rest we will hold during 2026 and the first half of 2027, when parts of the portfolio we sold were via forward sale, that is, we withdraw and receive payment in connection with the completion of a new ongoing project. Even if some of our sales in 2025 are clearly undervalued, they exceed our total purchase cost with a lot of margin. I think that is a strength in our business model. In addition, we see that the outgoing dismissal requirements in the completion of administrative facilities for 31-12 are up to 4.78%, which is roughly in line with the exit yields we have had in the business during 2025. This is seen as a strength. Under 2026, we will continue to sell directly owned properties to enter 2027 as a financially strong company, with a clear focus on project development and strategic entrepreneurial resources in construction and prefabrication, as well as cooperation with other property developers. In the future, you can expect a clearer focus on a more capital-efficient business model, where Forward Sale and Forward Funding are important tools we can use to achieve that goal and result. With a main focus on project development and prefab operations, K-Fastigheter will develop their own and co-owned property projects for sales. We do not necessarily have to sell them directly, but when pricing in combination with new conditions for reinvesting free and liquidity to the right discount and risk level prevails. To understand which animal K-Fast will be after the release of Brinova, it is important to first understand the parts themselves. As everyone on their own, we will be able to create profitability and strengthen the cash flow, but at the same time create added value in the symbiosis we live in. Initially, we work within the framework of the entire ownership interest in three business areas, project development, construction and prefab. Initially, during project development, we have a good building rights bank for 2026 and 2027, where we primarily work with our own concept houses. We start all projects on a rental right calculation, where our internal deposit requirements go up to a minimum cost of 6%. By that we mean that using net profit in relation to the total purchase cost should go up to at least 6%. In this way, we ensure that our projects do not eat bread if we fail to eliminate them, but vice versa, they can contribute to the strong cash flow until we find a buyer. I want you to put these 6% in relation to the sales we have made, which I previously agreed to be around 4.8% in exit yield. In KFAST Bygg, we do not operate our own business, but only entrepreneurs of our own projects via construction management. The business is of a character where our own project managers, our own workers, our own business engineers and buyers, but not our own designers, but well out on site. And in the areas where we work, we buy in complete design work and also installation work. Finally, within K-Prefab, we are a complete pipe supplier of prefabricated concrete pipes, and in some cases hybrid pipes, as well as we operate the appropriate enterprise by assembling the pipes in place for a close to airtight house. We deliver complete concrete dunes with very low climate pressure, which combines the attractiveness and long-term benefits that concrete can offer in combination with our environmental responsibility. Our order volume increased at the turn of the year to 1.25 billion And where the entire 78% is external orders, which we will put in relation to 61% in the corresponding period preceding the year. The year before that it was 56%. Among our shareholder companies, I would like to mention those where we have clear interests and where we primarily have long-term interests. In K-Fast Kilen, which we own to 50% and where the other 50% is owned by Kilenkrysset, we have had a good growth since the start of 2021 and now have a large amount of substantial importance. Counted in the number of properties, the completed and ongoing project is the company's largest compared to what K-Fast was in relation to our exchange rate change in 2019-2020. Now that the ongoing project in KFAS Kilen has been completed, the company has a yearly income of around 100 million SEK for administrative results. In KFAS Kilen, we share 50% of the administrative results with the owners and 50% will be reinvested in new projects, which gives us a certainty of the progress in that company in combination with the cash flow to us owners. Together with ByggVästa, we have started a 50-50 company where we develop and build housing with the ambition to achieve completion. We focus on metropolitan areas where ByggVästa with its local presence in the Stockholm region and we with our local presence in the Öresundsregion can create enormous values together. We have initially started two projects. with a total of 500 apartments in Malmö and Stockholm. Together with Alhem, which is based in Gothenburg, we have launched a joint venture, where we initially started with a project in Björlanda outside of Gothenburg, where we had the first savings for 256 rental properties. I place great emphasis on our shareholder companies, where our shareholders provide the competence and experience that together with our experience and competence makes us better together. We operate via Prefab, a business that has clear large-scale operations and where Young Ventures contributes with larger volumes than we ourselves could have achieved. Larger volumes give better prices to both ourselves, our collaboration partners, but also external customers. We simply become more competitive. My strong belief as the CEO of K-Fastigheter is that in a competitive market, it is the player with the lowest production prices, the player who over time has the least inherent risk, but also the biggest competitive advantage. Finally, we would like to mention Vigam, the housing company where we own 40% and where Danish Vigar Real Estate owns 60%. Vigam is Vigar Real Estate's commitment to establish its property and fund business in Sweden. The business is established and the first portfolio under the company's administration consists of properties with a total of 681 apartments, as K-Fast previously highlighted. Vigam is part of establishing a less capital-intensive project development activity, and an activity that is less cyclical than the one that ordinary project developers operate, where they primarily focus on building housing rights. Finally, I am convinced that new core assets, through a sum-of-a-part analysis, can create large cash flows and value for our shareholders. This gives us time to go through the transformation in 2026 and really bloom out in 2027. I will try to keep it fairly short and Martin will go deeper into the numbers. But we can state that the turnover in the entrepreneurial business increased by 7% and the rental income by 77%, but where the rental increases primarily depend on us now consolidating Brinova. We were happy that Prefab's external revenue increased by 38% and that at the beginning of the year we had an order stock of 78% consisting of external orders, against 61% in the corresponding period earlier that year. The company's result, exclusive value changes, rose by 75% but still from low levels and where our ambition levels are significantly higher. Our ambitions are to achieve a substantial result so that we can share Brinova, but also where K-Fast Holding can stand on its own two feet as a strong project development and entrepreneurial company. To show the breadth of what we deliver, we want to highlight some of our more prominent deliveries. With NCC as an orderer, we have had the opportunity to deliver a large training range for the Patriot air heating system on the LV6 air heating regiment in Halmstad. In addition, during the first quarter of 2026, we are working with a security class of parts of our employees in Prefab, as we see an increased demand for this type of buildings and entrepreneurs, and where we must have the right skills and qualifications to be the most preferred partner. In Lund, we have been honored to deliver to MTA the apartment and belonging to an entrepreneur to a large quarter of 323 apartments with the house or state building as the builder. And in Årstaberg, we have been able to deliver our largest project to a fantastically nice residential quarter, where Wallenstam is built. A lot has happened lately. We ended our first step in our transfer to VIGA and the VIGA real estate fund. We have, after the period started, transferred 1.2% of the shares in Kofast Chile, so we now own 50-50 in Kofast Chile together with Chilean Krysset. And we have introduced two new joint ventures together with Bygg Vesta and Halehem. In Brinova, we have hired a new CEO, Peter Ullmark, who will serve in June 2026. We have also started the process of notating Brinova's A-currency, which is an important step in making sure that K-families will be able to share their shares in the future. With these orders, I would like to hand over the order to Martin.

Thank you, Jakob! I will start my part of today's presentation with our entrepreneurial activity. Total income for 2025 was 1,989,000,000 SEK, an increase of 7% compared to 2024. The income was distributed to external entrepreneurs, that is, basically our external pre-fabricated business, which was 680,000,000 SEK, and the construction of concept houses, which was 1,308,000,000 SEK. If we dive into the prefab business, whose external income increased by 38% in 2025, we experience a strong increase in demand, not least in the construction of premises for public business and related to housing in the Stockholm region. Included is the total revenue of 1,039,000,000 SEK, which is an increase of 30% compared to the previous year. The order value also increased sharply and rose at the end of the year to 1,254,000,000 SEK, an increase of 19% compared to the start of 2024. Seventy-eight percent of the annual stock is made by external buyers, compared to sixty-one percent at the end of the year. This means that the prefab business becomes less and less dependent on the internal construction of Koncepthus. The revenues related to the construction of Koncepthus decreased by four percent during the year to one billion and three hundred and eight million kronor. This primarily depends on fewer construction starts during the year and therefore lower successive profit calculations. At the beginning of the year, we had 1,755 apartments in construction versus 2,052 apartments at the beginning of the year. 473 apartments have been completed during the year and 176 apartments have been built. The result for value changes decreased by 81% to SEK 55 million, equivalent to SEK 0.22 per share. The decrease mainly depends on three reasons. One, and of course the most dominant, is that there is less construction of apartments in the construction of concept houses. Two, that the result development in the prefab business this year, despite the growth in revenue, has been weak due to the lack of productivity in some of our production facilities. However, the measures have been taken, which have apparently had defects during the fourth quarter and forward. And finally, three, that our construction of concept houses is burdened by costs increases in a few individual projects, costs that are not in the coming 2026. Therefore, the entrepreneurial business is expected to develop in a positive direction in the future, as a result of increased productivity and a strongly improved position in the prefab business, together with more start-ups in the construction of concept houses, not least together with our new JV partners. Our administrative business was strongly affected during 2025 by the consolidation and development of the Brnova property. The total revenue for the year was 1,064,000,000 SEK, an increase of 75% compared to 2024. By the end of the year, the business encompassed the administration of 7,520 finished apartments and 243,000 square meters of social housing and premises, of which 90% of the rental value at the beginning of the year belongs to the business in Brnova. The inflation has been challenging during the year in parts of the stock and the inflation rate rose at the end of the year to 93.9% against 96.4% at the beginning of the year. However, the development has been positive during the autumn, just like the trend into 2026. Despite the weak inflation market, the surplus rate is increased from 66.5% to 67.3% and the gross profit increases by 78% to SEK 7.5 million. The positive operational development also affects the administrative results, which increases by 96% to 265 million kronor, which corresponds to 0.7 kronor per share, according to the company's shareholder. The financial net increase by 59%, primarily as a result of increased absolute interest. However, the debt rate decreases from 60.4% to 60.1% during the year. Lower average interest rate also has a positive impact on the financial network. The average interest rate for the company rose at the end of the year to 3.48% compared to 3.72% at the beginning of the year. Värdeförändringar uppgår för året till minus 195 miljoner kronor och påverkas primärt av två årsaker. Den ena är realiserade värdeförändringar i genomförda affärer, vilket uppgår till totalt minus 146 miljoner kronor. Dessa affärer utgörs primärt av K-fastighetens försäljning av fastigheter i Göteborgsregionen under sommaren och hösten. Den andra årsaken är primärt förändrade värdeförutsättningar relaterade till taxibundna kostnader, vilket har ökat de senaste åren. This affects the valuation of completed properties negatively. In addition to the change in the value of administrative properties, the reduced long-term interest rate has affected the value of the company's interest rate derivative negatively. In total, this negative effect increased to SEK 58 million during the year. The administrative business is expected to develop positively in the future, primarily through successively improved development and continued high completion rate and therefore increased administrative results. I would also like to note that a report for Brunovas property was released on Monday. Reading Brunovas report gives an increased understanding of the development in the administrative part of our business. Concern-wise, I think that we are focusing on central administration, which this year amounted to SEK 87 million, which is an increase on a consolidated level of 28% compared to 2024. As Jakob mentioned earlier, a savings program was initiated in connection with the Brnova deal, which is expected to have full effect from the spring of 2026. Already in 2025, however, we see remarkable changes, where central administration, exclusively at Brnova, decreases by 23%. The financial net increased during the year from 64% to 451 million SEK, which as previously mentioned primarily depends on absolutely increased debt. Relative debt decreased as previously mentioned. The interest rate level remains at a 1.6-year basis, but is expected to increase in the future as a result of improved results in the underlying businesses, e.g. in the form of improved order conditions in the prefabricated business, more construction sites and improved efficiency. The result, which for this year amounted to minus 76 million kronor, or minus 0.56 kronor per share, is expected to improve in the future for the same reason. If we move on to the financial position of the company, this is also affected by the acquisition of a number of properties. The total value of the company's administrative properties increases by 56% to 24.4 billion SEK at the end of the year, where the primary positions are completed administrative properties of 21 billion SEK and ongoing construction of 2.6 billion SEK. During the year, the direct deposit requirement in completed values has been stable and the average deposit requirement at the end of the period reached 4.7%, of which housing reached 4.5%. During the year, the company has built and acquired assets worth over 2.1 billion SEK and sold assets worth over 1.5 billion SEK. As a result of the consolidation of Brnova, interest-bearing debts have increased by 52% to 15.7 billion SEK, of which the bottom loan amounts to 12.7 billion SEK, or 81% of the interest-bearing debts. The debt rate increased at the end of the year to 58.5%, a decrease of 59.1% at the end of the year. A significant portion of the company's liabilities have been able to be amortized as a result of transactions, and partly as a result of the company issuing its first obligation during the year. I can't point out that this is an important part of the fact that we will be able to distribute the assets of the company in Brnova to our shareholders. Own capital has increased by 54% to 8.2 billion, of which 5.1 billion belongs to the shareholder of the real estate company. Solidity has been stable this year and was low at the beginning of the year at 30.4%. Unfortunately, the substance value decreased by 3% to 6.0 billion, or 24.46 kronor per share. Thus ending the year of 2025 on a slightly negative note. A year that in many ways has been really tough. However, we see a strong prospect for the year of 2026, where we really feel that we have a positive trend in the operational business, with several start-ups ahead of us, a strongly improved supply chain and result development in the prefabrication business, and a successfully improved level of education in the administrative business. Through this positive development in 2026, we will continue to focus on strengthening the balance sheet through strategic business and to reduce the debt with the goal of sharing the content in Brunor & Fastigheter and to build a competitive, capital-efficient entrepreneurial company. With these goals, I hand over to Jakob to conclude today's presentation.

Thank you, Martin. I will continue with Martin's positive conclusion. We have fought hard this year. We have come a long way in our transformation journey that will continue under 2026, but where we are on the right track and where we can go into 2027 as a really strong project development company with an entrepreneurial activity in strategic areas. We will deliver Brinova of our two separate, stable companies. Har ni några frågor på dagens presentation är ni välkomna att mejla in dem på ir1k-fastigheter.se så kommer vi att publicera frågor och svar på hemsidan löpande.