Magnolia Bostad Quarterly Report Group July–September 2015 Q3 July–September 2015

The quarter in brief residential units on the site. The six projects. The intent is to enter Net sales: SEK 370.6 million (5.1) seller is Karlstadhus AB. The Com- into a binding agreement for each Operating profit: SEK 61.6 million pany also signed an agreement for project before the start of con- (0.0) the sale of around 200 of these struction, which is expected to be Profit after tax: SEK 51.8 million units, which will become rental evenly distributed across the next (–6.4) apartments. two years. Earnings per share: SEK 1.30 (–0.20) • Magnolia Bostad employs Clas • Magnolia Bostad enters into a Equity (September 30): SEK 691.1 Hjorth to head its hotel devel- land allocation agreement with million (169.2) opment. The Company and Clas Knivsta Municipality for part of Equity per share: SEK 16.13 (5.41) Hjorth are also establishing a the Ängby 1:1 property in central jointly owned hotel development Knivsta. The proposal refers to Significant events during the company. 200 apartments of varying own- quarter • Magnolia Bostad employs seven ership forms and a gross area of • Magnolia Bostad acquires the staff members. The reinforce- around 18,000 sqm. Nacka Orminge 52:1 property ments will strengthen the Compa- • Magnolia Bostad wins a land (Hantverkshuset) from Carnifex ny’s production organization and allocation competition in Maria­ AB. increase its presence in southern staden, Helsingborg. It entails the • Magnolia Bostad initiates sales Sweden through the establish- production of more than 300 rent- for the Valsta Torg project, which ment of a local office in Helsing- al apartments covering two blocks consists of 42 tenant-owned borg. in the project's second phase. apartments next to Valsta Cen- • Magnolia Bostad is allocated land trum in Sigtuna Municipality. Significant events after the quarter for around 200 apartments with • Magnolia Bostad acquires a plot • Magnolia Bostad enters into varying ownership forms in the of land at Kanikenäsholmen in a declaration of intent for the future Lommarstranden neigh- southeast Karlstad. The Company sale of more than 2,000 rental borhood in Norrtälje Municipality. is planning to build around 300 apartments distributed across

Key ratios – Group 2015 2014 2015 2014 2014 SEK million July–Sept July–Sept Jan-Sept Jan-Sept Jan-Dec

Sales 370.6 5.1 478.8 12.4 140.5

Operating profit/loss 61.6 0.0 261.4 –4.8 47.3

Operating margin (%) 16.6 –0.8 54.6 –38.8 33.7

Profit/loss after financial items 52.1 –6.4 228.0 –15.9 29.8

Net profit/loss for the period 51.8 –6.4 227.7 –15.9 29.2

Cash flow from operating activities –39.5 –6.5 –99.1 –143.0 –229.1

Return on equity (%) 8.6 1) –3.6 87.0 1) –8.3 15.4

Equity/assets ratio (%) 39.5 25.9 39.5 25.9 32

Earnings per share (SEK) 1.30 1) –0.20 5.83 1) –0.51 0.95

Number of basic outstanding shares 37,822,283 31,288,942 37,822,283 31,288,942 31,288,942

Number of outstanding shares after full dilution 37,982,283 2) 33,288,942 37,982,283 2) 33,288,942 33,288,942 2)

Return on capital employed (%) 3.9 0.2 22.4 –0.4 9.2

Return on total equity (%) 3.6 0.2 20.6 -0.3 8.7

Interest coverage ratio (multiple) 6.4 0.2 7.7 –0.1 2.4

Equity per share (SEK) 16.13 1) 5.41 16.13 1) 5.41 8.10

1) Excluding the minority 2) 160,000 warrants are held by the Magnolia Bostad Group.

Magnolia Bostad | Q3 2015 2 A word from the CEO A quarter that focused on sales and recruitment

Magnolia Bostad is reporting the re- Next is the sale of 100 tenant- Recruitment sults from Q3 2015 today. The quar- owned apartments at Kanikenäshol- During the past quarter we focused ter was affected by strong sales men and the sale and start of pro- on strengthening the production and the recruitment of new staff duction at Åby Ängar Block 2, which side of our organization. We recruit- members. The company is reporting includes around 140 rental units in ed eight new employees, most of an operating profit for the period of Vallentuna. Looking forward, we which were in production. Of these, SEK 61.6 million (0.0). Profit after hope to be able to announce further six are placed in Stockholm, which tax was SEK 51.8 million (–6.4). sales this year, which could result is now well-equipped to run current in a strong fourth quarter for the and coming projects in the Greater Strong sales of apartments company. Stockholm area as well as in Uppsa- Sales of apartments in our ongoing la and mid-Sweden. tenant-owned apartment ­projects During the quarter we also signed a – Valsta Torg, Lumen, Huvud- declaration of intent with a Swedish We also established a regional office kontoret and M6 – are exceeding institution, which entails the intend- in Helsingborg and hired two new expectations. Only a few apart- ed sale of six projects, more than employees for this office. Their pri- ments remain and construction has 2,000 rental units, over the next two mary focus will be on our projects in started on all projects. We also sold years. southern Sweden and Gothenburg. just over 200 rental apartments at In the past year, we have gradually Kanikenäsholmen in Karlstad, and strengthened our positions in the re- construction has started on this gion with a number of new projects. project as well. Finally, I would like to mention that we brought on Clas Hjorth to lead Magnolia Bostad's hotel projects. Clas is well known within the real estate industry, primarily as the previous CEO of Home Properties. His first project will be to lead the development of a new hotel with around 300 rooms at Frihamnen in Gothenburg.

We are satisfied with our perfor- mance during the quarter, but we are particularly pleased to have established a solid platform for the company’s operations. We have the platform that we need to enable the company to continue to expand and to meet our financial goals.

Stockholm, November 2015

Fredrik Lidjan CEO

Magnolia Bostad’s CEO Fredrik Lidjan.

Magnolia Bostad | Q3 2015 3 Market and the organization

Market trends year at the end of Q3 2015 was SEK in prime locations in Stockholm, The National Board of Housing, 91.4 billion, which can be compared Gothenburg and Malmö during Building and Planning has made the to SEK 84.2 billion for the same Q3 2015 is judged by Newsec to be assessment that 183 of Sweden's period in 2014. 1.75 percent, 1.80 percent and 2.75 290 municipalities are currently ex- percent, respectively. periencing a housing shortage. This The single largest segment in terms housing shortage is a growing prob- of volume in 2015 up to and in- Tenant-owned apartments lem in the country and this year 27 cluding Q3 is commercial property, The tendencies that could be seen in more municipalities than in 2014 are which represents 32 percent. Res- Q2 2015 in the metropolitan regions experiencing a housing shortage. idential property comes in at third indicating a slow-down more or More than 80 percent of Sweden's place, with 20 percent of the total less disappeared during Q3 2015. population live in municipalities transaction volume. According to SBAB's Mäklarbarom- where there currently is a housing eter, demand, bidding and final pric- shortage. Demand is primarily for Rental apartments es have increased rapidly. Strong small, inexpensive apartments. The IPD Svenskt Bostadsindex demand continues to drive prices up indicates that the value of residen- in the metropolitan regions at the According to the National Board tial properties increased in 2014 on same time as time-to-sale contin- of Housing, Building and Planning, average by 4 percent. This appre- ues to fall. more than 70,000 residential units ciation is largely due to favorable will need to be built every year over interest rate levels. According to SBAB's Mäklarba- the next few years, compared to rometer, real estate agents in the the most recent years’ production The yield requirement for centrally metropolitan areas expect housing of less than 30,000 new homes a located residential properties in the prices to continue to rise during year. Given the increased migration metropolitan areas of Stockholm, Q4 2015. Demand is expected to to Sweden as a result of the current Gothenburg and Malmö has fallen continue to increase, but at a lower refugee crisis, the National Board steadily since 2008. This devel- rate than before. For the country as of Housing, Building and Planning's opment shows that the residen- a whole, tenant-owned apartment estimate is most likely on the con- tial class is judged to be a stable prices did not increase in Q3 2015 servative side. investment sector facing low risks. according to Mäklarstatistik, but The yield requirement for central- the prices in the Greater Stockholm The investment market continued ly located residential properties and Greater Gothenburg areas to demonstrate large demand increased by 5 percent during the for housing properties in Q3 2015, quarter. In the Greater Malmö area, which represented 20 percent housing prices increased by 6 per- of the total transaction volume. cent during the quarter. According to Newsec, the total transaction volume (transactions Organizational structure of more than SEK 100 million) was The organization continued to be SEK 34 billion, which is slightly lower strengthened during Q3 2015, pri- than in Q2 2015 (SEK 35 billion). The marily within production. total transaction volume for the

Magnolia Bostad | Q3 2015 4 Residential projects Magnolia Bostad Project Portfolio

The following table shows the ongoing projects, sold projects in production and projects being sold. Associated companies are not included. Number Estim­ of Gross ated con­ Type of Type of housing area struc­tion Estimated Project Property City project ownership units (sqm) Phase start occupancy

ONGOING PROJECTS

Huvudkontoret Kvarngärdet 28:7 Uppsala NC TO 45 3,500 S 2015 2016

Huvudkontoret Kvarngärdet 28:6 Uppsala NC TO 45 3,600 S 2015 2017

Åby Ängar 1) Vallentuna-Åby 1:94 Vallentuna NC R 137 7,800 S 2015 2017

Senapsfabriken 2) Kungsängen 25:1, blocks 2 & 3 Uppsala NC R/TO 1,150 66,000 CD 2016 2017

Åby Ängar 1) Vallentuna-Åby 1:149 Vallentuna NC R 140 7,900 CD 2016 2018

Norrbacka 1) Sigtuna Norrbacka 1:32-36 Sigtuna NC R 180 15,000 P 2016 2018

Södra Part of Nikolai 3:65 Örebro NC R 150 10,000 CD 2016 2018 Ladugårdsängen 1)

Kanikenäsholmen 1) Varvet 4 & Part of Varvet 2 Karlstad NC TO 100 7,200 CD 2016 2017

Östra Sala Backe 1) Östra Sala Backe, E2, block 5 Uppsala NC R 112 6,700 CD 2017 2018

Orminge centrum 1) Orminge 52:1 Nacka NC R 400 35,000 P 2017 2018

Bålsta centrum 1) Part of Väppeby 7:7 Bålsta NC R/TO 440 31,800 P 2017 2018

Arlöv 1) Burlöv Arlöv 20:58 and others Burlöv NC R 200 14,500 P 2017 2019

Oceanhamnen 1) Part of Gamla Staden 1:1, etc. Helsingborg NC R 109 8,500 P 2018 2019

Frihamnen 3) Part of Lundbyvassen 736:168 Gothenburg NC Hotel - 12,000 P 2018 2019

Frihamnen 1) Part of Lundbyvassen 736:168 Gothenburg NC R 150 10,500 P 2018 2019

Skogskarlen 3 Skogskarlen 3 Solna NC/ TO 130 8,000 P 2018 2019 REN

Stora Råby 1) Stora Råby 33:2 and others Lund NC R 330 23,800 P 2018 2020

Instrumentet 2 Instrumentet 2 Stockholm NC TO 100 6,100 P 2019 2020

Total 3,918 277,900

SOLD PROJECTS IN PRODUCTION

Traversen 18 Traversen 18 Sollentuna NC R 230 13,600 C 2014 2015

Nya Parken Allé Publiken 1 Norrköping NC R 268 16,600 C 2014 2016

Tibble Kungsängens-Tibble 19:1 Kungsängen NC R 40 2,600 C 2014 2016

Tibble Kungsängens-Tibble 20:2 Kungsängen NC R 93 5,250 C 2014 2016

Mariastaden 1) Slagan 1 Helsingborg NC R 287 14,700 C 2015 2017

Valsta Torg 1) Sigtuna Valsta 3:190 Sigtuna NC TO 42 1,974 C 2014 2015

M6 Muttern 6 Stockholm REN TO 55 2,900 4) C 2015 2016

Lumen Trapphuset 1 Sollentuna NC TO 92 6,600 C 2015 2017

Kanikenäsholmen 1) Part of Varvet 2 Karlstad NC R 216 15,700 C 2015 2017

Total 1,323 79,924

PROJECTS BEING SOLD

Lake View Svedje 1:307, etc. Åre NC COND 14 1,300

Senapsfabriken 2) 5) Kungsängen 25:1, block 1 Uppsala NC TO 400 29,000

Kopplingsboxen 26 Kopplingsboxen 26 Stockholm NC TO 20 1,130

Total 434 31,430

Total ongoing projects, sold projects in production and projects being sold. 5,675 389,254

1) Magnolia Bostad's share of the result amounts to 90%. 2) Magnolia Bostad's share of the result amounts to 76.3%, including forward transactions. 3) Magnolia Bostad's share of the result amounts to 60%. 4) Living area 5) Magnolia Bostad entered into an agreement in February 2013 to sell this part of the property, on the condition that the land can be divided as intended.

Type of project: NC=New construction, REN=Renovation Type of ownership: R=Rental unit, TO=Tenant-owned, COND=Condominium Phase: P=Planning work, CD=Concept development, S=Sales, C=Construction

Magnolia Bostad | Q3 2015 5 Residential projects Magnolia Bostad Project Portfolio in diagrams

Geographic distribution, sqm, ongoing projects and sold Distribution per project phase, sqm, ongoing projects in production projects and sold projects in production

Planning Concept development completed building rights Sales Construction

Distribution per ownership type, sqm, ongoing projects and sold projects in production

Rental Tenant-owned and Greater Stockholm condominiums Uppsala The Öresund region and Gothenburg Mid-Sweden

Magnolia Bostad | Q3 2015 6 Current housing projects

Lumen Sollentuna

The Trapphuset 1 property at Turebergs allé in Sollentuna was acquired during Q4 2013. Magnolia Bostad will construct 92 rental apartments here. Sales began in September and there has been considerable interest. Binding agreements have been signed for a majority of the apartments.

Project facts Location: Sollentuna Type of ownership: Tenant-owned Number of apartments: 92 Architect: Vera Arkitekter Occupancy: 2017

Magnolia Bostad | Q3 2015 7 Financial performance

Profit/loss for Q3 2015 SEK 1,094.4 million compared to investing activities totaled SEK –1.7 Net sales for Q3 2015 totaled SEK September 2014. This increase is million (–9.0). Financing activities 370.6 million (5.1). During the quar- primarily due to the acquisition of amounted to SEK –87.9 million ter an agreement was signed to sell the majority in the Kungsängen 25:1 (–1.0). The total interest-bearing 216 rental apartments in Karlstad property, the new share issue con- borrowings amounted to SEK 843.5 Municipality. The sale of M6, Valsta ducted in conjunction with the IPO million (457.9) on September 30. Torg and Lumen also had a positive of the company's shares on NAS- impact on sales and the operating DAQ First North in June and the Stock profit. The company reported a acquisition of the Nacka Orminge F. Holmström Fastigheter AB, in profit of SEK 61.6 million (0.0). 52:1 property. Equity attributable to which Fredrik Holmström has a the Parent Company's sharehold- controlling interest through com- Net financial items were SEK ers amounted to SEK 610.1 million panies, holds a 56.3 percent stake –9.5 million (–6.3). This change is (169.2) during Q3 2015. The minority in Magnolia Bostad. As at Septem- attributable to increased interest share of equity was 81.1 (0.0). The ber 30, 2015, the number of issued expenses related to increased bank equity/assets ratio increased to shares totaled 37,822,283. The funding in conjunction with invest- 39.5 percent (25.9). share is admitted for trading on ments in new projects. Profit before Nasdaq First North. tax was SEK 52.1 million (–6.4). Cash flow and financing The Group's available liquidity at Accounting and measurement Balance sheet as at the end of the period was SEK 134.9 principles September 30, 2015 million (87.0). Cash flow from oper- The Swedish Annual Accounts The balance sheet total at the end ating activities in the third quarter Act and the Swedish Accounting of Q3 2015 was SEK 1,747.9 million totaled SEK –39.5 million (–6.5). Standards Board's general guide- (653.5), which is an increase of During the quarter, cash flow from line, BFNAR 2012:1 (K3), apply as of 2014. The accounting and measurement principles are in agreement with those applied in the 2014 Annual Report and which are reported there in the notes on pages 66-67. Key ratio definitions agree with those applied in the 2014 Annual Report and can be found there on page 80, with the excep- Equity and total assets, SEK thousand tion of the definitions of the equity/ assets ratio and return on equity, 2,000,000 which have been adjusted due to the introduction of the minority's share of equity.

Equity/assets ratio 1,500,000 Equity including the minority's share of equity less deferred tax as a percentage of the balance sheet total.

1,000,000 Return on equity The Parent Company's share of profit/loss for the period as a percent of the opening balance of equity excluding the minority. 500,000 This report has not been audited by the company's auditors.

Comparison figures provided in pa- 0 2012 2013 2014 Q3 2015 rentheses refer to the same period the previous year. Equity Balance sheet total

Magnolia Bostad | Q3 2015 8 Current housing projects

Nya Parken Allé Norrköping

Magnolia Bostad is building 268 rental apartments next to ­Norrköping's sports arena, which is within walking distance to ­downtown Norrköping.

The property was sold to SEB's Domestica II real estate fund and construction started in December 2014.

Project facts Location: Norrköping Type of ownership: Rental Number of apartments: 268 Occupancy: 2016

Magnolia Bostad | Q3 2015 9 Annual accounts Consolidated income statement

2015 2014 2015 2014 2014 SEK thousand July–Sept July–Sept Jan–Sept Jan–Sept Jan–Dec

Operating income

Net sales 370,631 5,138 478,756 12,433 140,541

Total income 370,631 5,138 478,756 12,433 140,541

Operating expenses

Production and operating costs –298,316 –855 –318,097 –3,741 –75,420

Other external costs –3,555 –1,648 –12,233 –5,717 –9,679

Personnel costs –3,248 –2,319 –9,677 –6,775 –5,560

Depreciation, amortization and impairment of property, plant and equipment and intangible assets –359 –359 –9,069 –1,025 –1,399

Profit/loss from participations in associated companies –1,123 – –673 – –1,152

Other operating expenses –2,444 – –20,185 – –

Revaluation during transfer from associated company to subsidiary – – 152,592 – –

Operating profit/loss 61,587 –44 261,415 –4,825 47,332

Profit/loss from financial items

Interest income and similar profit/loss items 137 1,588 719 3,037 3,412

Interest expenses and similar profit/loss items –9,603 –7,907 –34,136 –14,066 –20,940

Profit/loss before tax 52,121 –6,363 227,998 –15,854 29,804

Tax on profit/loss for the period –316 – –316 – –608

NET PROFIT/LOSS FOR THE PERIOD 51,805 –6,363 227,682 –15,854 29,196

Attributable to:

Parent Company shareholders 49,217 – 220,483 – 29,196

Minority interest 2,588 – 7,199 – –

Magnolia Bostad | Q3 2015 10 Annual accounts Consolidated balance sheet

2015 2014 2014 SEK thousand Sept 30 Sept 30 Dec 31

ASSETS

Non-current assets

Intangible assets

Goodwill 5,046 6,246 5,946

Other intangible assets 681 8,287 8,304

Total intangible assets 5,727 14,533 14,249

Property, plant and equipment

Equipment, tools, fixtures and fittings 397 341 199

Total property, plant and equipment 397 341 199

Financial assets

Participations in associated companies 1,207 1,975 39,832

Receivables from associated companies 23,541 23,541 23,541

Other securities held as non-current assets 30,614 39,706 30,614

Other long-term receivables 11,826 13,480 15,109

Total financial assets 67,188 78,702 109,096

Total non-current assets 73,312 93,576 123,544

Current assets

Development and project properties 1,103,919 415,482 424,231

Tenant-owned apartments 3,800 – 9,092

Accounts receivable 2,497 677 1,057

Receivables from associated companies 250 43,172 9,598

Other receivables 427,261 13,197 186,952

Prepaid expenses and accrued income 1,907 412 517

Cash and bank balances 134,934 86,987 37,399

Total current assets 1,674,568 559,927 668,845

TOTAL ASSETS 1,747,880 653,503 792,389

Magnolia Bostad | Q3 2015 11 Annual accounts Consolidated balance sheet

2015 2014 2014 SEK thousand Sept 30 Sept 30 Dec 31

EQUITY AND LIABILITIES

Equity

Share capital 151,289 125,156 125,156

Equity method reserve – – 38,068

Other equity 238,314 59,901 60,997

Net profit/loss for the period 220,483 –15,854 29,196

Equity attributable to Parent Company shareholders 610,086 169,203 253,416

Minority's share of equity 81,053 – –

Total equity 691,139 169,203 253,416

Provisions

Provision for deferred taxes 170 – 169

Other provisions 50,661 – –

Total provisions 50,831 – 169

Liabilities

Long-term liabilities

Interest-bearing liabilities 701,246 447,948 494,353

Other long-term liabilities 42,374 10,345 100

Total long-term liabilities 743,620 458,293 494,453

Current liabilities

Liabilities to credit institutions 130,250 10,000 –

Accounts payable 9,592 4,401 15,131

Income tax liabilities 2,209 188 1,138

Other current liabilities 60,600 3,311 17,336

Accrued expenses and deferred income 59,637 8,107 10,746

Total current liabilities 262,289 26,007 44,350

Total liabilities 1,005,910 484,300 538,803

TOTAL EQUITY AND LIABILITIES 1,747,880 653,503 792,389

Magnolia Bostad | Q3 2015 12 Annual accounts Consolidated cash flow statement

2015 2014 2015 2014 2014 SEK thousand July–Sept July–Sept Jan–Sept Jan–Sept Jan–Dec

Operating activities

Profit/loss after financial items 52,121 –6,363 227,998 –15,854 29,804

Adjustments for non-cash items, etc. –63,008 2,258 –194,933 5,598 4,407

–10,887 –4,105 33,065 –10,256 34,211

Income tax paid –370 189 –353 173 3,635

Cash flow from operating activities before changes in working capital –11,257 –3,916 32,712 –10,083 37,846

Cash flow from changes in working capital

Reduction (+)/increase (-) of development and project properties –24,347 672 –104,678 –108,557 –68,383

Decrease(+)/increase(-) in current receivables –85,018 –4,675 –103,135 –4,461 –203,324

Decrease(+)/increase(-) in current liabilities 81,090 1,396 75,965 –19,869 4,750

Cash flow from operating activities –39,532 –6,523 –99,136 –142,970 –229,111

Investing activities

Paid shareholder contributions –200 – –200 – –

Acquisition of intangible fixed assets –160 –8,081 –459 –8,081 –8,083

Acquisition of property, plant and equipment –108 –51 –420 –189 –88

Sale of property, plant and equipment – – 2 – –

Investment in financial assets –1,201 –830 –5,235 –5,422 –6,660

Disposal/reduction of financial assets – – 6,775 – –

Cash flow from investing activities –1,669 –8,962 463 –13,692 –14,831

Financing activities

New share issue –12,572 – 180,512 – –

Shareholders’ contributions received – – – – 53

Borrowings 158,670 14,928 362,256 318,928 366,704

Repayment of borrowings 233,852 –15,760 –340,302 –93,529 –103,666

Paid dividends – –20 –6,258 –5,006 –5,006

Cash flow from financing activities –87,854 –852 196,208 220,393 258,085

Cash flow for the period –128,955 –16,337 97,535 63,731 14,143

Cash and cash equivalents at the beginning of the period 263,888 103,324 37,399 23,256 23,256

Cash and cash equivalents at the end of the period 134,934 86,987 134,934 86,987 37,399

Magnolia Bostad | Q3 2015 13 Annual accounts Changes in equity, Group

Equity Net profit/ Total equity, Share method loss for the principal Minority Group, SEK thousand capital reserve Other equity year owner interest Total equity

Amount at beginning of year 1/1/2014 125,156 – 44,389 20,518 190,063 190,063

Profit/loss for the year carried forward 20,518 –20,518 0 0

Write-up 39,000 39,000 39,000

Shareholders' contributions 164 – 164 164

Dividends –5,006 – –5,066 –5,006

Change in equity method reserve –932 932 0 0

Net profit/loss for the year 29,196 29,196 29,196

Amount at end of year 12/31/2014 125,156 38,068 60,997 29,196 253,416 253,416

Amount at beginning of year 1/1/2015 125,156 38,068 60,997 29,196 253,416 253,416

Transfer of profit/loss for the year to non- restricted reserves 29,196 –29,196 0 0

Redistribution during transfer from associated company to subsidiary –38,068 –38,068 –38,068

New share issue 26,133 167,365 193,498 193,498

Issue expenses –12,986 –12,986 –12,986

Acquisition of subsidiaries 0 73,854 73,854

Dividends –6,258 –6,258 –6,258

Net profit/loss for the period 220,483 220,483 7,199 227,682

Amount at end of period 9/30/2015 151,289 – 238,314 220,483 610,086 81,053 691,139

Magnolia Bostad | Q3 2015 14 Annual accounts Parent Company income statement

2015 2014 2015 2014 2014 SEK thousand July–Sept July–Sept Jan–Sept Jan–Sept Jan–Dec

Operating income – – –

Operating expenses

Other external costs –1,187 –166 –1,625 –371 –480

Personnel costs –538 – –1,603 – –

Operating profit/loss –1,725 –166 –3,229 –371 –480

Profit/loss from financial items

Interest income and similar profit/loss items 4,630 5,140 13,919 8,561 12,620

Interest expenses and similar profit/loss items –1,166 –5,471 –11,667 –9,597 –14,789

Profit/loss before tax 1,739 –498 –977 –1,408 –2,650

NET PROFIT/LOSS FOR THE PERIOD 1,739 –498 –977 –1,408 –2,650

Magnolia Bostad | Q3 2015 15 Annual accounts Parent Company balance sheet

2015 2014 2014 SEK thousand Sept 30 Sept 30 Dec 31

ASSETS

Non-current assets

Financial assets

Participations in Group companies 88,822 88,822 88,822

Receivables from Group companies 234,026 234,016 234,016

Participations in associated companies 2,050 1,850 1,850

Receivables from associated companies 27,241 26,541 27,241

352,139 351,229 351,929

Total non-current assets 352,139 351,229 351,929

Current assets

Development and project properties – – 3,823

Accounts receivable 3 3 3

Receivables from Group companies 109,125 6,401 10,778

Receivables from associated companies 216 677 221

Other receivables 564 1 1

Prepaid expenses and accrued income 305 96 74

110,213 7,178 14,900

Cash and bank balances 78,994 19,665 551

Total current assets 189,207 26,843 15,451

TOTAL ASSETS 541,346 378,073 367,381

Magnolia Bostad | Q3 2015 16 Annual accounts Parent Company balance sheet

2015 2014 2014 SEK thousand Sept 30 Sept 30 Dec 31

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital 151,289 125,156 125,156

151,289 125,156 125,156

Non-restricted equity

Profit/loss carried forward 156,196 10,613 10,724

Net profit/loss for the period –977 –1,408 –2,650

155,219 9,206 8,074

Total equity 306,508 134,361 133,230

Liabilities

Long-term liabilities

Interest-bearing liabilities 221,770 219,582 220,034

Other long-term liabilities – 111 –

Total long-term liabilities 221,770 219,693 220,034

Current liabilities

Accounts payable 18 – 69

Liabilities to Group companies – – 1,948

Other current liabilities 12,000 20,018 12,000

Accrued expenses and deferred income 1,050 4,000 100

Total current liabilities 13,068 24,018 14,117

Total liabilities 234,838 243,711 234,151

TOTAL EQUITY AND LIABILITIES 541,346 378,073 367,381

Magnolia Bostad | Q3 2015 17 Annual accounts Changes in equity, Parent Company

Profit/loss Net profit/loss Parent Company, SEK thousand Share capital carried forward for the year Total equity

Amount at beginning of year 1/1/2014 125,156 16,247 –628 140,775

Shareholders' contributions 111 111

Appropriation of profit/loss as per resolution by the AGM –628 628 0

Dividends –5,006 – –5,006

Net profit/loss for the year –2,650 –2,650

Amount at end of year 12/31/2014 125,156 10,724 –2,650 133,230

The outstanding number of basic shares at 12/31/2014 amounts to 31,288,942. The outstanding number of shares after full dilution at 12/31/2014 amounts to 33,288,942 (160,000 warrants are held by the Magnolia Bostad Group).

Profit/loss Net profit/loss Parent Company, SEK thousand Share capital carried forward for the year Total equity

Amount at beginning of year 1/1/2015 125,156 10,724 –2,650 133,230

Profit/loss for the year carried forward –2,650 2,650 0

New share issue 26,133 167,366 193,499

Issue expenses –12,986 –12,986

Dividends –6,258 –6,258

Net profit/loss for the period –977 –977

Amount at end of period 9/30/2015 151,289 156,196 –977 306,508

The number of outstanding basic shares at 9/30/2015 amounts to 37,822,283. The number of outstanding shares after full dilution at 9/30/2015 amounts to 37,982,283 (160,000 warrants are held by the Magnolia Bostad Group).

Magnolia Bostad | Q3 2015 18 Residential projects

M6, Södermalm in Stockholm.

Financial Calendar

• Report January-December, Year-End Report: February 26, 2016

Contact

Fredrik Lidjan, CEO Erik Rune, CFO [email protected] [email protected] +46 70 223 43 47 +46 73 399 40 30

Magnolia Bostad | Q3 2015 19 Magnolia Bostad AB Grev Turegatan 11 A Box 5853, 102 40 Stockholm, Sweden Telephone +46 8 470 50 80 magnoliabostad.se