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2 AGENDA

1. Vasakronan Overview 5 2. Business Description 10 3. Swedish Real Estate Market Overview 19 4. Financials 25 5. Funding 31 6. Appendix 37

3 1. VASAKRONAN OVERVIEW VASAKRONAN IN BRIEF Vasakronan owns, develops and manages office properties in

Contracted Rent by Geographic Market • Largest Swedish real estate company 8% 10% • Modern and high quality portfolio in prime locations 18% Malmö 64% • Strong and committed long-term owners

Contracted Rent by Property Type • Market value EUR 14 bn Uppsala 7% Stockholm • Total area (thousand) 2,300 sqm 19% Offices Gothenburg • Contracted rent EUR 658 m Retail

Other - hotel, residential and 74% parking • Number of properties 173

Malmö • Number of employees 309

As of 30 September 2019.FX-rate EURSEK 10,72 5 LARGE REAL ESTATE COMPANIES IN THE NORDICS Investment property value EURbn

A3

BBB BBB/ Baa3

Baa2 AA- BBB- Baa2

NR Baa2 A- A- BBB-/ Baa2 Baa3 Baa1 Baa3

Source: Annual report of each of the companies above for the year 2018. 6 TIMELINE & KEY EVENTS Consistent growth over a period of two decades. Focus on markets with high growth and liquidity.

Continously improved quality in the portfolio through transactions and project development amounting to EUR 0.2-0.3 bn per annum

16

14

12 CAGR 2008-2018: 9 %

10

8

13,2 13,7 6 12,0

Market value EUR bn EUR value Market 11,0 9,8 8,7 4 7,8 8,0 8,3 7,1 6,8 7,3 2 1,9 0 1998 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3

AP AP Fastigheter Further focus on Acquisition of Issues the Rating assigned by Fastigheter acquires Vasakronan commercial properties. commercial world’s first Moody’s –A3. established EUR 4 bn and divest Divestment of a properties in Corporate by the properties to Niam for portfolio of Gothenburg green bond Issues the world’s first AP-funds EUR 0,7 bn residential properties for for EUR 0,5 bn green CP EUR 0,7 bn 7 THE AP-FUNDS ROLE IN THE SWEDISH PENSION SYSTEM Vasakronan is the Swedish National Pension Funds´ main exposure to the Nordic office market

PARLIAMENT

SWEDISH NATIONAL EXTERNAL AUDITORS MINISTRY OF FINANCE PENSION FUND LAW

25 % 25 % 25 % 25 %

VASAKRONAN HOLDING

VASAKRONAN

COMMENTS

• AP-funds are closed-end buffer-funds and part of the Swedish national income pension system. • All AP-funds are independent of the government. The funds operations are regulated by the Swedish National Pension Funds Act. • The CEOs of the AP-funds are part of Vasakronan´s Board of Directors. • The AP-funds support Vasakronan with a credit commitment of EUR 1,7 bn and CoC-clause in all funding

8 ASSIGNED A3 (STABLE) RATING BY MOODY’S

“Largest real estate company by asset value “100% ownership by AP funds, and in the Nordics with a dominant position in ultimately the government, and our Sweden’s most attractive office markets” expectation of extraordinary support"

1 2 3 4

Substantial amount of 25% of rental revenues Largest real estate liquidity supported by a Long-term Government stem from creditworthy company in Sweden with credit facility from the related owners (AP 1-4) government and public dominant position in owners amounting to sector tenants prime office locations EUR 1,7 bn

5 6 7

The project portfolio by High share of nature includes a environmentally certified LTV policy range by speculative element but A3 properties with high of 45-55 % with Stable outlook represents a relatively A3 ratings small part of total asset

9 2. BUSINESS DESCRIPTION THE STRATEGY Sustainability is a natural, integral part of Vasakronan’s organization and business. This applies to the board, management and our everyday activities.

GROWTH OFFICES AND MARKETS CITY RETAIL

The premises are modern, efficient and Focus on locations in Sweden centrally located in areas with strong economic growth with good communication. and high liquidity Retail is concentrated to city centres.

SURVIVORS ON THE PROJECT TRANSACTIONS RENTAL MARKET DEVELOPMENT

The property stock consists of The property stock is continuously We have a clear and well balanced premises that remain attractive even in developed in order to meet the demand strategy for transactions and an action times of less demand. and improve quality. plan for each property.

11 A SUSTAINABLE BUSINESS MODEL

COMMENTS GRESB, Global Real Estate Sustainability Benchmark 2019

• Sustainability is a natural and integral part of Vasakronan’s organization and business • In November 2013, Vasakronan was proud to be the first company in the world to issue green bonds • The energy consumption has been halved since 2009 • Renewable or climate-neutral energy have reduced carbon dioxide emissions in Scope 1 and 2 by 98 percent between 2006-2018 • As at 30 September, 2019, 84 percent of the portfolio have environmental certification. The certification system mostly used is LEED and 70 percent of the portfolio are certified according to LEED on a Gold or Platinum level • The target is to have a 100 percent green asset portfolio

ENERGY CONSUMPTION ENVIRONMENTAL CERTIFICATIONS

210 -55% % 84% 190 100 170 80 150 130 60 110 40 90 kWh/sqm 70 20 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2019 Q3 2019 2019 Q3 2019

As of 30 September 2019 12 MODERN AND HIGH QUALITY PORTFOLIO IN PRIME LOCATIONS

Birger Jarlsgatan, Stockholm CBD Läppstiftet, Gothenburg CBD

Triangeln, Malmö Kista Science Tower, Stockholm Kista Science City 13 DIVERSIFIED PUBLIC AND MULTI TENANT BASE

CONTRACTED RENT BY SECTOR, % OF PROPERTY PORTFOLIO TENANT TYPE SHARE IN %

Swedish Police Authority Public 3%

Ericsson Private 3% 16% 24% H&M (Offices and stores) Private 3% 3% Swedish Prison and Probation Service Public 2% 3% 6% Swedish Social Insurance Agency Public 2%

Swedish National Courts Administration Public 1% 9% 21% Åhléns Private 1% 18% Handelsbanken Private 1%

KPMG Private 1% Public sector Services Consumer IT Goods Finance Telecom Industry Other The Riksdag Administration Public 1%

TOTAL 18% 4 112 commercial contracts (residential and garage not included)

14 CONTRACTED RENT BY PROPERTY TYPE Vasakronan’s revenues are anchored in the office sector with diversification into other segments such as retail

STOCKHOLM UPPSALA Contracted Rent by Property Type Contracted Rent by Property Type % of Properties % of Properties

7% 11% 12% Offices Offices Retail Retail 21% Other Other 68%

81%

Central Stockholm Stockholm (inc CBD) inner suburbs Central Uppsala

15 As of 30 September 2019. CONTRACTED RENT BY PROPERTY TYPE (CONT’D) …with Stockholm as core city and Uppsala, Gothenburg and Malmö as key hubs

MALMÖ GOTHENBURG Contracted Rent by Property Type Contracted Rent by Property Type % of Properties % of Properties

5% 13%

Offices Offices

Retail 34% Retail

29% Other 58% 61% Other

As of 30 September 2019. 16 MARKET SHARE BY REGION Vasakronan, the largest property owner in its key operating cities and can thus offer customers greater flexibility

CENTRAL STOCKHOLM INCLUDING CBD CENTRAL UPPSALA

25 25 20% 20 20

15 12% 15 10% 8% 10 7% 10 8% 6% 5% 5% 5 5% 5

0 0 Vasakronan AMF Fabege Hufvudstaden AFA Vasakronan Skandia Uppsala Uppsala Bonnier Fastigheter Akademi Kommun Fastigheter

GOTHENBURG CBD MALMÖ CBD AND VÄSTRA HAMNEN 25 25 22% 20% 20 20

15 14% 15 14%

10 9% 10 8% 7% 7% 5% 5 5 4%

0 0 Vasakronan Wallenstam Hufvudstaden Balder SEB Vasakronan Wihlborgs Balder Volito Midroc

17 Source: CBRE and Datscha, as of February 2019. HIGH QUALITY PROJECT PORTFOLIO Most of the project aren’t started until lease agreements are in place

COMMENTS

• Project development delivers greater return than acquiring properties • Vasakronan´s project portfolio has delivered an average Internal Rate of Return of 11,5 percent • Ongoing property developments projects have a total investment volume of EUR 1 212m, of which EUR 571m was invested as of 30 September 2019. The project portfolio represents only 8 percent of total assets • The risk-taking in individual projects depends on the market conditions. Most of the projects are only started if long lease agreements are in place • As of 30 September 2019 the average occupancy rate in major property projects was 62 percent and the percentage of completion was 45 percent Platinan, Gothenburg, EUR 243m

Kronan, Sundbyberg, Stockholm EUR 157m Sergelhuset, Stockholm, EUR 345m 18 3. SWEDISH REAL ESTATE MARKET OVERVIEW MARKET OVERVIEW

STEADY GROWTH IN THE SWEDISH ECONOMY COMMENTS GDP Growth in Sweden, %

8% • Sweden is one of eleven AAA-rated countries 6,0% 6% 4,5% • The Swedish economy is growing fast compared to the EU as a whole and 4% 2,7% 2,6% 2,7% 2,1% 2,4% 1,2% Sweden’s unemployment fell from 6.7 percent (2017) to 6 percent (2018) 2% 1,2% • In December 2018 the repo rate was raised to -0.25 percent. 0% • This economic environment has created a favourable investment climate in (2%) (0,3%) the Swedish property market and has contributed to a rise in property prices (4%) • The transaction volume in 2018 was EUR 16 bn (6%) (5,2%) (8%) 2009 2011 2013 2015 2017 2019 Estimate

OFFICE EMPLOYMENT STRONG SWEDISH PROPERTY MARKET Office employment, % change in metropolitan regions Transaction volume, EURbn

5% 4,8% 25 4% 3,7% 20 3,2% 3,3% 3,1% 3% 2,7% 15 2,2% 2,2% 2% 1,7% 10 0,9% 1% 0,5% 5 0% 0 2009 2011 2013 2015 2017 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 Estimate Domestic International

Source: SCB, Evidens, National Institute of Economic Research, HUI Research, Eurostat, Sveriges Riksbank. 20 OFFICE EMPLOYMENT AND COMPLETED OFFICE SPACE (P.A. AS % OF TOTAL STOCK) Office employment has increased more than the supply of new office space in all of Vasakronan’s key cities.

STOCKHOLM GOTHENBURG

4,0% 4,0%

3,1% 2,9% 3,0% 2,8% 3,0%

2,1% 2,0% 2,0% 1,0% 1,2% 1,1% 1,0% 1,0% 1,0%

0,0% 0,0% 2009-2018 2019E-2021E 2009-2018 2019E-2021E

Demand / Office employment Supply / Completed office space Demand / Office employment Supply / Completed office space

MALMÖ UPPSALA

4,0% 4,0% 3,5% 3,4%

3,0% 2,8% 3,0% 2,3% 2,1% 2,0% 1,7% 2,0%

0,8% 1,0% 1,0% 0,6%

0,0% 0,0% 2009-2018 2019E-2021E 2009-2018 2019E-2021E

Demand / Office employment Supply / Completed office space Demand / Office employment Supply / Completed office space

21 Source: Evidens, JLL, Vasakronan. RENTS AND VACANCIES - OFFICES Despite increasing office rents, vacancies continue to decline

STOCKHOLM CBD UPPSALA INNER CITY 750 15 300 15

650

550 10 250 10

450 (%) (%) 200 5 EUR/sqm EUR/sqm 350 5

250 150 0 150 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3 2019 Q3

GOTHENBURG CBD MALMÖ CBD

300 15 15 300

250 10 10 250 (%)

(%) 200 5 5 EUR/sqm EUR/sqm 200

150 0 150 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019Q3 Q3 2019Q3 Rent / sqm Vacancies, %

22 Source: Cushman & Wakefield. As of September 2019. RETAIL MARKET OVERVIEW Increase in Retail Sales 2019 but e-commerce sector accounted for most of the growth

COMMENTS • The growth in the retail sector is expected to grow by 3.0 percent in 2019 and the steadily growing e-commerce sector accounted for most of the growth. • The e-commerce is growing fast and now stands for almost 10 percent of the retail sector. • The turn-over in Vasakronan´s City Retail Index has declined during the last year. • Still a strong demand for retail stores in excellent locations • E-commerce companies establish physical stores in order to increase sales online, and the other way around • Although a negative turnover growth in physical stores, the result of Vasakronan’s retail stores renegotiation R12 showed an increase of 4.3 percent

INCREASE IN RETAIL SALES VASAKRONAN RETAIL CITY INDEX Growth in Total Retail Sales, % Growth in Turnover for comparable stores R12,%

9% 8% 5,8% 6% 7% 6% 5% 5% 3,7% 4% 3,6% 3,4% 3,4% 3,0% 4% 2,7% 3% 3% 2,0% 2,0% 2,1% 2% 2% 1% 1% 0,7% 0% 0% -1% 2009 2011 2013 2015 2017 2019 Estimate -2% -3% 2016 2017 2018

Source: SCB, HUI Research, Vasakronan. 23 RENTS AND VACANCIES – RETAIL PREMISES Rents and vacancies are stable on the retail premises market

STOCKHOLM CBD UPPSALA INNER CITY 10 10 1 950 1 150 1 750 8 8 1 550 950 1 350 6 750 6 1 150 (%)

950 (%) 4 550 4 EUR/sqm

EUR/sqm 750 550 2 350 2 350 150 0 150 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019Q3 Q3 2019Q3

GOTHENBURG CBD MALMÖ CBD

10 10 1 150 1 150 8 8 950 950 6 6 750 750 % 4 (%) 4 550 EUR/sq.m 550 EUR/sqm

350 2 350 2

150 0 150 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019Q3 Q3 2019Q3

Rent / sqm Vacancies, %

Source: Cushman & Wakefield and Forum Fastighetsekonomi. As of September 2019 ( Uppsala Inner City as of March 2019). 24 4. FINANCIALS TOTAL RETURN Business target - a total return of at least 6,5% over a ten year period, and a total return of 0,5% above the industry average. External valuation is carried out twice a year by an independent firm of appraisers.

20%

15%

10,0% 10% 9,1%

Capital Growth

5%

Income Return

0% VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI

-5% Vasakronan MSCI Swedish Property Index(1)

-10% 10 year 2009 2010 2011 2012 2013 2014 2015 20162017 2018 average

Notes: (1) MSCI-Index excludes Vasakronan. Source: MSCI Swedish Property Index. 26 STABLE OCCUPANCY RATE Occupancy rates have been stable over the cycle. 2,3 % of the office vacancy is related to project development.

OCCUPANCY RATE VACANCIES % 100% 6,9%

90

80

2,3% 70 6,9% 60 4,6%

50 91,9 92,8 93,0 93,0 93,4 92,0 92,6 94,2 93,1 93,1 93,1

40

30 Investment Properties

20 Projects

10

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

As of 30 September 2019. 27 LEASE AGREEMENTS AND CONTRACT RENEWALS During the last 12 months the rents on renewals have increased by 13,0 %.

DURATION IN CONTRACT PORTFOLIO ANNUAL LEASING VOLUMES Average Term 4,0 Years (Share, %) EURm

60% 60

40% 40

66 58 57 50 48 44 20% 20 42 42 39 39 37

0% 0 2019 2020 2021 2022 and after 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

COMMENTS

• An average lease agreement in the Swedish market is between 3 and 7 years

• Lease agreements up to 25 years in properties built for special purposes, for example courts and life science

• Lease agreements are adjusted according to inflation

• Of all the contracts up for renegotiation over the last 12 months, more than 70 percent of the tenants decided to extend their contracts

• Due to rising rents the rent on renewals have increased by 13 percent in total during the last 12 months

28 INCOME STATEMENT EBITDA margin is stable over time and Interest Expenses have decreased despite higher debt.

RENTAL REVENUE

COMMENTS 1000 600 900 • Revenues have increased by approximately 25 percent 500 800 compared to 2009 627 700 605 564 563 583 400 600 514 557 550 561 • EBITDA has improved and EBITDA margin has been stable 501 488 EUR/sqm 500 300 over time EURm 400 200 300 • Interest Expenses have decreased despite higher debt 200 100 100 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

EBITDA INTEREST EXPENSES 800 600

700 73% 500 -250 70% 70% 71% 72% 600 70% 69% 69% 68% 66% 460 400 -200 500 63% 427 -154 391 380 390 408 EUR/sqm 384 391 -150 -147 -140 400 318 337 350 300 -123 -119 -117 -105 EURm -109 300 -107 -97 200 -100 EURm -80 200 100 -50 100

0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 2019 EBITDA Margin EUR/sqm

29 CAPITAL STRUCTURE AND INTEREST COVERAGE RATION LTV has been below 50% since 2011 and ICR has been way above the minimum of 2,0 times.

ICR & LTV TARGET DIVIDEND POLICY

• Interest Coverage Ratio has improved substantially and is • Under normal circumstances dividends shall correspond to well above the minimum of 2,0 times 40-60 percent of the Group's profit before value changes and after taxes • LTV shall have an average of below 50 percent. Accepted deviation of +/- 5 percent • In order to avoid over capitalization, larger dividend can be paid in periods of rising property values • LTV has been below 50 percent since 2011 • In times of negative property value development, • LTV shall be lower at times of high property values and dividends may need to be lower or none, and if required, vice versa capital injection will be requested from the owners times INTEREST COVERAGE RATIO LOAN TO VALUE % 60% 6 52% 52% 49% 48% 50% 46% 46% 5 4,7 44% 43% 43% 4,4 41% 39% 3,9 4 3,7 3,8 40% 3,2 2,8 2,9 2,8 3 2,5 2,7 30%

2 20% 2,0 Times 1 10% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 0% 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

30 5. FUNDING GOVERNMENT BACKED OWNERSHIP STRUCTURE Vasakronan is the Swedish National Pension Funds’ strategic investment in the Swedish office market. Therefore, they are supporting the Company with a RCF and CoC clauses on all debt instruments.

CREDIT FACILITY CHANGE OF CONTROL

• Vasakronan has a EUR 1,7 bn revolving credit • The change of control clause covers all our facility with the owners. capital market and bank funding. It is one example of our owners’ long-term commitment • The agreement has a constant maturity and can which provides security to our investors be terminated with a notice period of 24 months • Change of Control occurs when the aggregate • The commitment can be used for general holdings of AP Funds ceases to represent at corporate purposes least 51 per cent. of the total voting rights represented by the shares and the rating is • Gives extremely strong liquidity position and lowered by at least one full rating notch lowers risk of short-term funding

32 DIVERSIFIED FUNDING With high proportion of green financing

LARGE PROPORTION OF DARK GREEN FUNDING COMMENTS • Vasakronan has a diversified funding with a broad investor base • Limited Secured LTV at 8 percent of Total Assets • First corporate in the world to issue a Green Bond and a Green Commercial Paper • Dark green Second Opinion from CICERO and an Impact Report that is validated by the auditors

DEBT PORTFOLIO, EUR BN Nordic- and Secured bank European loans Investment Bank 1,1 0,5 Commercial Papers Bonds USD 0,6 0,1 44% Bonds AUD 0,0 Green Bonds JPY 0,1 6,1 Funding

Bonds EUR Bonds SEK 0,37 2,3

Bonds NOK 1,0

As of 30 September 2019. 33 DEBT OVERVIEW Low risk due to long Average Fixed Interest Term and long Average Loan Maturity

AVERAGE INTEREST RATE, COMMENTS FIXED INTEREST TERM AND AVERAGE LOAN MATURITY 7

• Credit facility from owners and cash covers all debt maturities 6 and cash flows within 18 months 5

• Long average fixed interest rate maturity of 6,2 years 4

• Vasakronan has an ambition to diversify the investor base 3 Years / % / Years further in new markets 2 • Short term debt will be replaced by longer dated funding 1

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3

Fixed interest term Average loan maturity Average interest rate

DEBT MATURITY PROFILE, AVERAGE OF 5,2 YEARS DEBT – COVER RATIO 183%

2 500

2 000

1 500

EUR EUR m 1 000

500

0 Available Liquidity Short term debt

As of 30 September 2019. 34 KEY CREDIT HIGHLIGHTS

Government Largest real backed ownership estate company structure in the Nordics

Modern and high Strong quality Office- financial portfolio in performance prime locations

Diversified public and multi by A3 tenant base A3 with Stable outlook

35 Thomas Nystedt Group Treasurer +46 8 566 205 41 [email protected]

36 APPENDIX FINANCIAL POLICY Vasakronan has a conservative Treasury Policy with limited risk.

POLICY

FINANCIAL POLICY ACTUAL AS AT 30 SEPTEMBER 2019 FINANCING RISK

Average Loan Maturity At least 2 years 5,2 years

Loan Maturing 12 Months Max 40% 18%

Credit Facility from Owners and Cash / Loan Maturity 12 Months At least 100% 183%

INTEREST RATE RISK FINANCIAL Interest Coverage Ratio At least 2,0 times (last 12 months) 4,6 times RISKS Fixed Interest Term At least 2 years 6,2 years

Interest Maturity within 12 Months Max 55% 28%

CREDIT RISK

At least A-, or BBB+ for derivatives under Counterpart´s Rating Fulfilled CSAs

CURRENCY RISK

Currency Exposure without assets in foreign currency Not allowed Fulfilled

Secured Debt/Gross Assets Max 20% 8%

38 INCOME STATEMENT

Income Statement (EURm) 2017 2018 Q3 2019

Rental Revenues 605 627 488 Revenue Growth, % 3,8% 3,5% -- Operating Expenses (62) (66) (48) Repairs and Maintenance Expenses (10) (10) (8) Property Administration (31) (33) (25) Property Tax (51) (49) (46) Site Leaseholds 1) (15) (14) -- Net Operating Income 436 454 361 Surplus ratio, % 72,1% 72,5% 74,1% Central Administration (9) (9) (7) Profit from Joint Ventures and Associated Companies (0) 15 83 Other Operating Income or Expenses ------Interest income 0 0 0 Interest expenses (109) (98) (81) Site Leaseholds 1) -- (10) Profit Before Value Change and Tax 318 362 347 Change in Value of Investment Properties 744 994 631 Depreciation of land lease agreements -- -- (0) Change in Value of Financial Instruments 44 1 (160) Divested or Impaired Goodwill (2) (6) (7) Profit Before Tax 1 103 1 351 811 Current Tax (9) (11) (10) Deferred Tax (230) (137) (128) Profit from Assets Held for Sale ------Profit for the Period 865 1 204 673 Other Items ------Profit for the Period 865 1 204 673

1) Reclassification in accordance with IFRS 16 Leasing 39 BALANCE SHEET

Balance Sheet (EURm) Dec 31, 2017 Dec 31, 2018 September 30, 2019

Intangible Assets 200 195 188

Investment Properties 11 835 12 960 13 749

Equipment 4 4 4

Investment Properties, site leaseholds 1) -- -- 489

Other Financial Receivables 86 95 245 Total Non-Current Assets 12 126 13 254 14 675

Current Receivables 81 84 129

Cash and Cash Equivalents 133 207 315 Total Current Assets 214 291 444

TOTAL ASSETS 12 340 13 545 15 118

Total Equity 4 793 5 622 5 922

Deferred Tax Liabilities 1 569 1 706 1 833

Debt, site leaseholds 1) -- -- 489

Interest-Bearing Debt 5 450 5 698 6 061

Non-Interest Bearing Liabilities 528 518 813 TOTAL EQUITY AND LIABILITES 12 340 13 545 15 118

1) Reclassification in accordance with IFRS 16 Leasing

40 CASH FLOW STATEMENT

Cash Flow Statement (EURm) Dec 31, 2017 Dec 31, 2018 September 30, 2019

Net operating income 436 454 361 Central administration (9) (9) (7) Add back amortisation and depreciation 1 1 1 Adjustment for other non-cash items (1) (1) (1) Cash flow from operating activities before interest and tax 428 445 354 Interest Paid, Net (111) (99) (83) Taxes Paid (assumed to equal current tax) (1) (13) (19) Cash Flow Before Changes in Working Capital 316 333 252 Change in Net Working Capital 8 6 (14) Cash Flow From Operating Activities 324 339 238

Intangible assets ------Investments in Existing Property (237) (311) (293) Net Acquisitions/Divestments (41) 176 136 Other PPE, Net (0) (1) (0) Other Financial Assets -- 15 -- Dividends from joint ventures -- -- 5 Cash Flow from Investing Activities (278) (121) (152)

Dividends and Group Contribution (373) (373) (373) Loans to Owner ------Change in Debt, Interest-Bearing Liabilities 327 250 292 Change in collateral (33) 24 127 Redemption of Financial Instruments (33) (45) (24) Cash Flow from Financing Activities (113) (144) 22

Cash Flow from the Period (68) 74 108 Opening Balance Cash and Cash Equivalents 200 133 207 Closing Balance Cash and Cash Equivalents 133 207 315

41 CASH FLOW FROM THE BUSINESS AFTER NET INVESTMENTS Cash Flow from the business exceeds net investments

Cash Flow

400

300

200

100

0 EUR m ( 100)

( 200)

( 300)

( 400) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Cash flow from the business Net investments Free cash flow before financing

42 YIELD DEVELOPMENT Property yields offer attractive spread over government bonds in all Vasakronan’s key cities

7%

6%

5%

4%

3%

2%

1%

0%

-1% Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 Q2 2019

Stockholm CBD Uppsala Inner City Gothenburg CBD Malmö CBD Swedish 10Y Gov Yield

Source: Cushman & Wakefield, Bloomberg. 43