The Annual Report

i W L H F s g r o b a g i t s h A r e t e B - a

u n n Wihlborgs Fastigheter AB L A

8 0 0 2 t r o p e r The Annual Report

2 0 0 8 January–December

Adresses

Malmö - Head office Helsingborg Lund Danmark Wihlborgs Fastigheter AB Wihlborgs Fastigheter AB Wihlborgs Fastigheter AB Wihlborgs A/S www.wihlborgs.se Box 97 Garnisonsgatan 25 A Ideon Science Park Ellekær 6, opgang C [email protected] 201 20 Malmö 254 66 Helsingborg Scheelevägen 17 DK-2730 Herlev, Board registered Visitors: Dockplatsen 16 Tel.: +46 42 490 46 00 223 70 Lund Denmark office: Malmö Tel.: +46 40 690 57 00 Fax: +46 42 490 46 01 Tel.: +46 46 286 85 00 Tel.: +45 396 161 57 Corporate identity Fax: +46 40 690 57 01 Fax: +46 46 18 40 96 Fax: +45 396 161 58 number: 556367-0230 Invitation to the Annual General Meeting articles of association ■ Articles of Association of Wihlborgs Fastigheter AB (publ), Corporate Identity number: 556367-0230 The Annual General Meeting of Wihlborgs Fastigheter AB (publ) will take place at 17 p.m. on Thursday 23 April 2009 at Slagthuset, Jörgen Kocksgatan 7A, Malmö. Shareholders wishing to attend the meeting must be included in the register of shareholders maintained by Euroclear Sweden AB (former VPC AB) by 17 April 2009 at the latest, and must also § 1 Registered name of the Company is Wihlborgs the Managing Director from personal liability. send notification of their participation by letter to Wihlborgs Fastigheter AB, Box 97, 201 Fastigheter AB, which is a public company (publ). d) the record date for the payment of dividends. 20 Malmö, or by e-mail to [email protected] or phone on § 2 The object of the Company’s operations is to 8. Resolution of the number of members of the +46 40 690 57 70 or fax on +46 40 23 45 52. acquire, manage, develop and sell properties, Board and, where applicable, the number of Notification must reach Wihlborgs by 4 p.m. on Friday 17 April 200. The notification primarily in the Öresund region, and conduct auditors and deputy auditors. must state the shareholders’ name, civic registration number/corporate identity number, associated operations. 9. Determination of the fees to be paid to the address, telephone number and number of shares owned. Shareholder with nominee-re- Board members and, where applicable, the auditors. gistered shares in order to participate must re-register their shares in their own name with § 3 The registered office of the Board of Directors 10. Election of the Board members. Euroclear Sweden AB. A request for such re-registration must be made in good time before shall be Malmö, Sweden. 11. When required, election of the auditors and Friday 17 April 2008. § 4 The Company’s share capital shall amount to not deputy auditors. less than SEK 155,000,000 kronor and not more 12. Election of the Nomination committee. than SEK 620,000,000 kronor. 13. Other business that must be addressed by the § 5 The number of share shall not be less than Meeting in accordance with the Annual 15,500,000 and not more than 62,000,000. Accounts Act or the Articles of Association. § 10 Notice of a General Meeting of Shareholders shall § 6 The Board of Directors shall consist of not fewer be made in the form of an advertisement in the than four and not more than eight members. Wihlborgs is the leading property company in the Öresund Official Gazette (Post- och Inrikes Tidningar) and § 7 Of the Company’s auditors, at least the auditor and region. The properties’ book value totals SEK 13.6 billion with a in Svenska Dagbladet and in Sydsvenska Dagbladet the deputy auditor must be Authorised Public or in another daily newspaper published in Skåne. lettable area of 1.3 million sq.m. and an annual rental value of Accountants. Instead of an auditor, the Annual If publication of Svenska Dagbladet ceases, notifica- n i n g

SEK 1.3 billion. General Meeting may elect one or two authorised tions will be effected through an announcement in d Wihlborgs shares are listad on the Stockholm Stock accounting firms, whereby no deputy auditors need the Swedish Official Gazette and Dagens Industri. to be elected. Notice of the Annual General Meeting and of Exchange, Mid cap segment. g s o r § 8 The Company’s fiscal year shall consist of the Extraordinariy General Meetings convened to la calendar year. address amendments to the Articles of Association shall be issued not earlier than six weeks and not b o § 9 The Annual General Meeting shall be held in later than four weeks prior to the Meeting. Notice Malmö. The following items of business shall be of other General Meetings shall be issued not earli addressed at the Annual General Meeting: 81 er than six weeks and not later than two weeks pri 1. Election of Chairman of the Meeting. or to the Meeting. 2. Preparation and approval of the list of share- § 11 To be entitled to participate in the business of a holders entitled to vote at the meeting. General Meeting, shareholders must be included in 3. Election for one or two minute-checkers. the share register confirming conditions five days Financial information 2009 4. Approval of the agenda. prior to the Meeting and must notify the Company Interim report January–March: 23 April 5. Determination of whether the Meeting has been of their intention to attend the Meeting and be Interim report January–June: 8 July duly convened. accompanied by a maximum of two assistants not Interim report January–September: 29 October 6. Presentation of the annual report and the later than 4 p.m. on the day stipulated in the auditors’ report an, if applicable, of the consoli- Notice of a General Meeting. This day must not be dated financial accounts. a Sunday, a public holiday, a Saturday, Midsummer’s 7. Motions concerning Eve, Christmas Eve or New Year’s Eve and must not a) the adoption of the income statement and be more than the five weekdays before the Meeting. balance sheet and, if applicable, of the consoli- § 12 The company’s shares will be recorded in a control dated income statement and consolidated register pursuant to the Swedish Financial Instru- balance sheet. ments Act (1998:1479). b) the disposition to be made of the Company’s profits or losses as shown in

invitation the balance sheet adopted by the Meeting.

ÖMÄ LJ RK I T c) the discharge of the members of the Board and M Production: Wihlborgs in collaboration with Pennan AB, Lund 2009.

341 T 115 R K Y C K S A Photographs: Lars Strandberg, Joachim Karlsson, Johan Windh, Marcus Carlsson, Ola Hansson, Stefan Larsson och Martin Palvén. Print: Markaryds Grafiska AB.

Wihlborgs annual report 2008 The year in summary

■ Rental income increased by 13 per cent to SEK 1,168 million (1,035) ■ Net operating income increased by 15 per cent to SEK 832 million (723) ■ Profit from ongoing property management before tax increased to SEK 450 million (444) ■ Changes in value of properties and derivatives amounted to SEK -637 million (1,058) ■ The result of the year was SEK -49 million (1,114) and earnings per share were SEK -1,32 (29,08) ■ New lease agreements amounts to SEK 138 million (111), of which SEK 43 million (14) were signed during the fourth quarter ■ The Board proposes a dividend of SEK 6,50 (6,25) per share

Key ratios1 2008 2007 Rental income, SEKm 1,168 1,035 Net operating income, SEKm 832 723 Profit after financial items, SEKm -187 1,502 Return on equity, % -1.2 27.9 Equity/assets ratio, % 29.4 32.6 Interest coverage ratio, multiple 2.2 2.7 Earnings per share, SEK -1,32 29,08 Cash flow from operations before change in working capital, per share, SEK 11,99 11,36 Dividend per share, SEK2 6,50 6,25

1. For definitions, see page 80. 2. This refers to the Board of Directors proposal of dividend for 2008.

Contents 1 The year in summary 34 Projects and development Financial reports 70 signing of the Annual 2 CEO’s review 36 Valuation principles 53 Profit and loss account Report 4 History 38 List of property acquisitions 54 Balance sheet 71 Audit Report 5 Operations and sales 56 Changes in equity 72 Corporate Governance Report 6 Organisation and employees 40 List of properties 57 Cash flow statements 80 Five-year summary and 8 The environment 48 Risk factors and Tax 58 Accounting principles situation definitions 12 The share 63 Notes 50 Administration Report 81 Articles of Association 14 Market overview

17 Property portfolio

gödecke frakt & trailer sita scalado 22 24 ab 28 30 skånes dansteater 32 26 com 2008 Wihlborgs årsredovisning skattemyndigheten hem ceo OUR EMPLOYEES HAVE DONE A FANTASTIC JOB which is evident from strong leasing with newly-signed contracts amounting to SEK 138 million. This, together with project development, has increased our lease income by 13 per cent to SEK 1,168 million as well as increasing our operating surplus by 15 per cent to SEK 832 million. This balances increased financing costs as a consequence of increasing interest rates during the first ten months of the year. Seen overall, the result for current management was SEK 450 million, in other words somewhat higher than 2007. I consider this to be good growth bearing in mind the turbulence of 2008. The Stockholm stock exchange’s development during 2008 has not been some cheerful reading. But it is my opinion that we have done a lot better than many others. We shareholders could and can, if so decided by the AGM, continue to enjoy a good yield.

Good properties maintain their value even when times are hard The fact that our properties have survived well and we have been success- ful in achieving a better net operating result, depends on the fact that we systematic during several years have developed our portfolio. Part’s through selling the houses that we haven’t seen future value development in and part’s through acquiring and building good modern commercial premises with good value growth. Properties located in attractive areas which we ourselves have been involved in developing in an interesting and growing market – the Öresund region.

REVIEW The rental market in the Öresund region in balance S In the region’s main urban areas there is more or less a balance between supply and demand. In Malmö, for example, the vacancy levels in my opi- CEO’ nion are below 6 per cent in Centre and Western Harbour. It should however be borne in mind that approximately 50,000 sq.m. of new properties

will be completed in Malmö over the next two years. But only 5,000 sq.m. of this volume has not yet been contracted. In my estimation, the lower expected rate of growth and thus demand will be balanced by an increase in occupation. During 2008, around forty new enterprises were established in Malmö, four of which were head offices. The companies who chose Malmö as a location for their Swedish or northern European head offices were Mercedes, Vestas, DSB First Group and Hexagon Polymers. I am convinced, for a number of reasons, that this development will continue: Naturally the region’s geographical location. But also a number of other ”2008 was an- factors such as expanded communications, the number of uni- versities and other centres of excellence and good recreation other good year facilities. These are well-known factors that are important in for Wihlborgs” attracting both people and companies. To these advantages we can now add the agreed link across the Fehmarn Belt that links the Öresund region with northern Germany. By 2018, Hamburg will be no further away than Gothenburg. This will further increase the region’s attractiveness. I am also hopeful that the hi-tech EU project – the ESS materials research facility - will be established in Lund. A decision is expected during the Spring and, if it turns out to be to Sweden’s advantage, the Öresund region’s position as a centre of excellence will be further strengthened. This, I am convinced, will attract a number of new enterprises to the region.

Wihlborgs annual report 2008 New enterprises need new environmentally-harmonised premises Knowledge and service industries which increasingly provide the basis of the region’s business and commerce demand modern premises. Premises that are effective with efficiently-used space and are prepared for new technology with internal and global networks. Open spaces with generous meeting rooms enhance communication between members of staff and thus creativity. A good working environment is also an important part of the concept. We also see how tenants subsequently make greater demands in terms of environmentally-adapted premises. Environmental issues have been of central importance to us for a long time. We formu- lated an environmental policy at an early stage that continuously guides us towards more environmentally-friendly alternatives. Today, all of our service vehicles are gas-driven. More or less all the property energy we consume comes from district heating, hydroelectric or wind power. Our properties at Dockan have a minimal impact on the environment. This is possible thanks to our aquifer plant at the Dockan area which, in and energy-efficient manner, seasonally-stores ground water which cools in the summer and warms during the winter.

Development of attractive areas Attractive office locations are often linked to the towns’ centres. The existing stock of buildings is usually old and therefore difficult to convert into modern, efficient premises. In this case it is often necessary to work with active development of easily-accessible areas near to cities that can be built REVIEW

upon. These can then be planned effectively and, if required, in collaboration with local authorities. They can be provided with roads, car parking, general communications, restaurants and shops etc. This is what we have done in Lund and Helsingborg and, not least, at Western Harbour in CEO’S Malmö. Here we are working flat out on the development of Dockan as one

of the country’s most popular areas.

A strong player can drive development By thinking long-term in this way and developing attractive premises that please not only today’s tenants but also entice new companies, we also create values for shareholders as well as all other interested parties including the local authorities in which we operate. As the region’s major player we have good opportunities for driving this development. Our capacity to attract activities has been illustrated through a number of notable contracts we have recently signed. The latest is Honda’s new Nordic head office. We have both the knowledge and the financial muscle to do such deals as well as continuing to exploit our attractive areas such as Herlev in Copenhagen, city centre in Helsingborg and Berga, Ideon in Lund and the major potential that we have at Dockan in Malmö. Furthermore, we have the organisational capacity as well as competent and committed employees. With such good prerequisites we can create value for all interested parties and will continue to do so. Malmö March 2009

Anders Jarl CEO

2008 Wihlborgs annual report history The Annual General Meeting of 9 May 2005 decided 1998 Wihlborgs Fastigheter AB completes the acqui- in accordance with the Board’s proposal to change sition of Klövern Fastigheter AB and gains properties the name of the Company from Wihlborgs Fastigheter in Malmö and Helsingborg, as well as in other parts of AB to Fabege AB. This occured as a result of the Sweden and the Netherlands, with total lettable area impending distribution of the Company’s portfolio in of 934,000 sq.m. On 14 April 1998, Wihlborgs Fastig- the Öresund region under the Company Wihlborgs heter AB makes an offer for Fastighets AB Storheden. Fastigheter AB. The following section presents the As a result, the Stockholm area becomes a key part of history underlying the development of the property the Company’s operations. portfolio in the Öresund region. The company referred to below up to the year 2004 as Wihlborgs 2000 JM, Peab and Wihlborgs Fastigheter AB esta- Fastigheter AB is the current Fabege AB. blish a new joint development company for the development of the Dockan district in Western Harbour, 1924 In 1924, master builder O P Wihlborg Malmö. established a building company in Malmö that provided the name for Wihlborgs Fastigheter AB. For a 2004 Wihlborgs Fastigheter AB acquires the Stock- protracted period, the Company built, owned and holmbased property company, Fabege AB. In Decem- administrated properties in Malmö. ber, the Board of Directors in Wihlborgs Fastigheter AB proposes that the Annual General Meeting of 9 1985 Building operations are sold to the Active May 2005 approve the distribution and separate lis- Group, based in Malmö, and the Company ting in accordance with Lex ASEA of the property becomes a traditional property company. portfolio in the Öresund region.

1990 Wihlborgs Fastigheter AB is listed on the Stock- 2005 The distributed company is given the name holm Stock Exchange’s O-List. Peab AB becomes Wihlborgs Fastigheter AB and the distributing the new majority shareholder in Wihlborgs. company changes its name to Fabege AB. 23 May 2005 Wihlborgs Fastigheter AB is listed on the 1993 In conjunction with a new share issue of SEK Stockholm Stock Exchange’s O-list. 371m, Wihlborgs Fastigheter AB acquires 33 properties in Sweden, of which 22 properties are located in 2006 Wihlborgs acquires 14 properties in Malmö Malmö and Helsingborg. Bergaliden becomes the with a total lettable area of 182,000 sq.m. from Tornet. new major shareholder in Wihlborgs Fastigheter AB. Wihlborgs acquires Ideon AB in Lund by purchasing

history 40 per cent of the shares. The remaining 60 per cent 1995 Fastighets AB Stillman is acquired and Wihl- is expected to be occupied in 2009. The purchase borgs Fastigheter AB gains properties in Malmö, includes the property Betahuset at Ideon (Vätet 1) Lund and Landskrona with an area of 44,000 sq.m. totalling 24,000 sq.m. During May Wihlborgs implements a 2:1 share split, one old share was replaced 1996 Wihlborgs Fastigheter AB acquires 76 proper- with two new shares. ties with a lettable area of 178,000 sq.m. from Retriva (currently Kungsleden). Wihlborgs and Fastighets 2007 Wihlborgs continues to invest in Lund and sets AB Storheden conduct an exchange of properties, up a new office at Ideon. An agreement is signed with through which the Company takes over 35 properties Mercedes on the construction of a new Nordic head in Skåne with 78,100 sq.m. The Board of Directors in office at Dockan. Wihlborgs makes a public offer to acquire M2 Fastig- heter AB on 22 November 1996, involving the acquisi- 2008 Wihlborgs leaves Germany in connection tion of properties with an area of 364,000 sq.m. The with the sale of the remaining office property at company establishes a presence in Denmark through Lippeltstrasse in Hamburg. Agreements are signed the acquisition of two properties. with ÅF and Region Skåne for two new office properties at Dockan. An agreement is signed with Honda 1997 During the spring, Wihlborgs Fastigheter AB on the construction of a new head office at Svåger- completes the acquisition of M2 Fastigheter AB. torp. Wihlborgs acquires the Scandinavian Center property in Malmö of 8,000 sq.m. Wihlborgs continues with the repurchase of its own shares and acquires 1,217,000 of them. Its holding at the end of the year was 2,214,350 shares.

Wihlborgs annual report 2008 business concept, overall objectives and strategies

Wihlborgs is a property company focusing on com- Financial goals mercial property in the Öresund region. The criteria Wihlborgs is to show: for long-term and acceptable value growth are created by activities being characterised by a clear, cashflow- ■ A return on shareholders’ equity that exceeds the oriented strategy where the creation and realisation risk-free interest rate by at least four percentage of added value are important factors. Together with a points1. clear dividend policy the overriding objective is to cre- ■ An equity/assets ratio of a minimum 25 per cent ate a good overall yield for the shareholders. and a maximum of 35 per cent. ■ An interest coverage ratio to at least 2.0. Business concept Wihlborgs shall own, manage and develop commercial properties with a focus on well-functioning sub-markets The above financial goals have to be achieved through in the Öresund region. the active development of assets and liabilities and capital structure. Wihlborgs shall always have a capital Overall objectives and strategies structure that gives the maximum return to share- Wihlborgs aims to be the leading and most profitable holders, with due consideration of risk. property company in the Öresund market. To attain this, Wihlborgs must: Dividend policy Wihlborgs’ dividend policy is based, firstly, on transfer- ■ Consolidate and further strengthen its market posi- ring part of the profit generated by property manage- tions in the Öresund region by concentrating on ment and, secondly, on transferring realized value selected sub-markets. growth: ■ Actively improve the property portfolio by purcha- ■ The dividend is to amount to 50 per cent of profit- sing, developing and divesting properties. Realisa- from ongoing property management2.

tion of value growth will form a key part of the ope- perations rations. ■ In addition, 50 per cent of realised profits frompro- O perty sales are to be distributed3. ■ Actively and efficiently manage the property portfolio with the focus on high cost-effectiveness and a high occupancy rate by being a market leader in 1. The risk-free rate of interest is defined as the rate on a 5-year Swedish government bond. each sub-market. 2. Pre-tax profit, excluding realised and unrealised changes in value, char- ■ Strengthen customer relations by active involve- ged with 26,3 per cent standard tax. ment and offering a high level of service in order to 3. Difference between the sales price and total capital invested, charged create the necessary conditions for long-term ren- with 26,3 per cent standard tax. tal relationships. ■ Actively cultivate the rental market to obtain new- customers and strengthen the brand in order to become the preferred choice for customers.

2008 Wihlborgs annual report organisation and employees

Wihlborgs is characterised by a flat organisation with short deci- and is organised as eight geographically- sion paths. Wihlborgs’ organisation is designed to increase profit distributed management units. The purpo- from day-to-day management while creating new business at the se is to create the criteria for management same time. that is effective and close to clients. All management is provided by the Legal structure company’s own staff so that is can be close Wihlborgs Fastigheter AB (publ), corporate ID number to clients and can quickly respond to their 556367-0230, is the parent company of a group with a total of 129 group companies and five joint ventures. expectations and demands. It is important that employees know their regular clients and are available. Each management unit has a manager with a clear profit responsi- Group Management bility. The manager sets up the guidelines Purchase Economy/Finance for his activity in close collaboration with group management. Environment Communication/IT

anisation and employees Business development comprises two g Management Business Development parts – Projects and Development, and Malmö 3 management units Transactions. Projects and Development Lund 1 management unit Projects and Transactions has a central role for improvements to the Development O R Helsingborg 3 management units property portfolio and is responsible for Köpenhamn 1 management unit new and redevelopment projects as well as procurement and monitoring. Investments in properties are prepared and evaluated by the respective manager together with a Joint Ventures project manager. Investments in excess of Wihlborgs owns 40 per cent of Medeon AB. This is a marketing SEK 10m shall be approved by the board. company that is operated together with Malmö Stad. Transactions are responsible for all the 50 per cent of Ideon Center AB is owned by Wihlborgs and company’s purchases and sales of proper- Ikano Fastighets AB. The company will be responsible for mar- ties. The transactions unit continuously keting Ideon and providing joint functions. monitors potential business. Evaluation Wihlborgs also owns 33.3 per cent of Dockan Exploatering is often performed in consultation with AB. The company is engaged in the production of detailed Administration to make the most of skills it plans and infrastructure investments for the new Dockan has in terms of local market knowledge etc. district located at Western Harbour in Malmö. JM and Peab When assessing property acquisitions the each own equal shares in Dockan Exploatering. analyses conducted include the property’s Other joint ventures do not operate any activity. long-term yield, technical standard, development potential and tenant structure. Operating structure In addition to the operative organisa- The operating organisation comprises the Management and the tion there are the group functions Eco- Business Development function. nomy/Finance as well as Communication and IT. Management is adapted according to local market criteria

Wihlborgs annual report 2008 Group Management comprises the CEO, Female and male managers economy and finance director, property di- (total 16 persons) rector, information director and assistant to the CEO. The responsibilities of group management include overall responsibility for strategy issues and business development, economic control and profit monitoring as well as issues concerning information.

System support ■ Men 56 per cent Wihlborgs employs different system supports ■ Women 44 per cent to effectivise its activities. The Vitec Nova lease system is used within lease administration. This is where all lease contracts are Sickness absence registered. All administration that applies Wihlborgs has a low level of sickness absence which in 2008 to tenants is managed from Vitec. The Visma amounted to 2.0 (2.8) per cent. The proportion of long-term Control economy system is used for day-today sickness absence for 2008 was 37.4 (31.5) per cent. All employees accounting while Ocra is used for consoli- are covered by health care insurance. dated accounting. All invoicing is processed digitally with scanned invoices in the Baltzar Wellness invoice processing system. Good health is a resource for the individual as well as the compa- Wihlborgs has developed its own tool, ny. This is why wellness is of significant importance to Wihlborgs’ Hemborgen, to support property manage- activities and profitability. All employees are offered keep fit ment and administration. This is integrated training in the form of difference exercise programmes provided with the lease and economy system. through Friskis&Svettis, regular health checks and free health Since all information is gathered in one care. anisation and employees

place, it can be easily accessed by the entire g organisation. Hemborgen contains modul- Competence development es for dealing with operating costs concer- Wihlborgs encourages initiatives from employees for competen-

ning the company’s tenants, income reports ce development. It is important to have the opportunity for deve- O R and analysis of lease contracts. Hemborgen lopment at work in order to satisfy customer demands with also contains an archive of all documents knowledge and an individual sense of work satisfaction. Part of that concern properties. This is where all this development is also the annual development discussions information can be entered in order to between employees and their immediate managers. monitor and follow up due dates and upda- tes. Incentive programme Employees in the group, with the exception of the CEO, benefit Employees from the profit-sharing fund. The purpose of the profit-sharing The skills and commitment of the employees fund is to stimulate employees to achieve predetermined objecti- are vital to the group’s development and for ves that are part of the company’s activities. A whole proportion in the quality of the service offered to customers. the event of maximum allocation corresponds to shares in Wihl- Staff policy is structured and strongly linked borgs to a value of one base amount which is currently SEK 42,800. to the company’s activities. All employees receive equal shares in the fund irrespective of As at 31 December 2008, the number of their position in the company. The share amount in the case of employees was 81. The proportion of part-time employees or those who work only part of the year is employees with an academic qualification adjusted. All funds that are allocated to the profit-sharing foun- was 27 per cent. The average age of the dation shall be invested in shares in Wihlborgs. Dividends are employees was 49 and the proportion of also reinvested in Wihlborgs shares. The share holding was women amounted to 32 per cent. The 68,850 as of December 31. company’s staff turnover in 2008 amounted to 8.3 per cent. The organisation comprizes 16 managers, of which 9 is men and 7 women.

2008 Wihlborgs annual report we’re growing in harmony with the environment

The year 2008 resulted in the debate on the environment be- per cent in total. This means that Wihlborgs’ coming increasingly prominent in different contexts around long-term objective will continue into 2009. the world. The financial crisis in the final months of 2008 See page 10 for more information on our became a reality. Is a financial crisis something that causes a environmental objectives. company’s environmental commitment to be put to one side? Our commitment is rather quite the opposite since this type A stage longer at Dockan of crisis can be seen as an opportunity for change and this At the moment we are building a new office also applies to environmental change. In 2008 it became in- for Region Skåne at Dockan. The property creasingly evident that the voluntary climate market grew. In will have an energy consumption at least 25 other words an increasing number of companies have chosen per cent lower than the requirements in to invest in environmental initiatives without the pressure of National Board of Housing, Building and any legislative obligation. This applies to both the short-term Planning ’s construction rules (BBR). and the long-term perspective. This type of environmental Our next step will be to apply for as part- work is usually termed strategic environmental work. In ners on real estate level in the Greenbuil- these introductory lines we would like to present the past ding concept. In addition to Regionhuset we year’s strategic environment work. will apply for further energy effective real estates at Dockan. Strategic environmental work At Dockan we have a so called aquifer It’s not enough just to do things well, we also need to im- plant which, in and energy-efficient manner, prove what is already good. Daring to compete with oneself is seasonally-stores ground water which cools important. In 2008 Folksam’s Climate Index for the year 2007 in the summer and warms during the winter. showed that Wihlborgs topped the list. It is gratifying that we were highlighted for our strategic environmental work. But Wihlborgs steps on the gas this does not mean that we can take a back seat - quite the Our environmental work is characterised reverse. It is important for us not to lower our ambition in any by something new happening all the time.

the environment environmental area and, above all, not our environmental During 2008 our endeavour was to highlight agenda. Our ambition is to continue investing in sustainable the change to our service vehicles when we development and to promote environmental profiling. Most took the step from using petrol to the use of important of all, however, is that what is contained in our gas. In our annual report for previous years environmental strategy is applied in practice. Our objectives we were able to present our investment in shall be measurable and realistic. By being able to commu- environmental service vehicles according to nicate both internally and externally so that we can achieve the Swedish Road Administration’s definit- what is planned is very important. ion. EcoDriving was also arranged for the majority of our employees in connection Environmental objectives for 2008 with this. It is evident from our environmental All of 2008’s environmental objectives were achieved. This policy that we shall be receptive to environ- means that: mental innovations and keep updated with • Wihlborgs reduced its electricity consumption (kWh/sq.m.) current information. Something that has by 2 per cent compared with 2007. been conceived from environmental inno- • Wihlborgs reduced its heating consumption (kWh/sq.m.) vations is Sweden’s biogas plants as well as by 2 per cent compared with 2007. the south of Sweden’s investment in pro- ducing biogas. We therefore feel that the • All properties built between 1956 and 1973 were checked time is ripe to invest in gas-powered service for PCB. vehicles. 22 gas-powered VW Caddy EcoFuel • Refurbishment was done on the basis of the PCB audits. service vehicles were delivered in August 2008. We believe that vehicle parks in the Long-term environmental objectives from 2007 to 2009: Re- future will be characterised by various fuels ducing electricity and heating consumption (kWh/sq.m.) by 6 and new environmental technologies where

Wihlborgs annual report 2008 the environment

Wihlborgs environment commitments in practice – 22 gas-powered service cars, here outside Wihlborgs’ head office on Dockplatsen in Malmö. the common denominator is that fuel/tech- developed environmental strategy, then this will be of value. nology will promote renewable sources. In ten years there will perhaps be ten out of ten who choose us for the same reason. Environment brochure An environment brochure has been compi- Sustainable today and tomorrow led during the year in order to provide con- The checklist that was compiled in 2007 in order to ident- cise information on how Wihlborgs tackles ify our suppliers’ and contractors’ environmental work was environmental issues. Among the purposes widely used in 2008. The checklist ensures that our suppli- of the brochure is to use it to inform pos- ers and contractors are conscious that they have an impact sible future tenants that we are actively enga- on the environment. We want to ensure that they can offer ged in environmental work. It is highly likely products and/or services that have the smallest possible that our tenants will be increasingly aware of environmental impact. how we deal with energy and environmental When choosing materials for renovation, we work on issues. If one in ten chooses us in preference the basis of Folksams Byggmiljöguide (Folksam’s Building to other companies since we have a well- Environment Guide) since this provides guidelines on what

2008 Wihlborgs annual report can be used from an environmental perspective. In the ventilation inspection). New for this year case of new constructions, we will compile an environmen- is that the programme has been updated tal programme for the specific property. This programme and can be more easily used in direct con- considers energy efficiency, moisture protection and choice nection with other property data. Every of material in detail. employee has access to all information on the environment via our intranet. This Using “Hemborgen” contains Wihlborgs’ environmental risks, Wihlborgs’ earlier environmental database has been upda- environment policy, environment audits, ted during the year and is now consolidated in “Hemborgen”. reports from our energy and environment The information in Hemborgen is linked directly to a meetings, and Wihlborgs’ environment respective property. Hemborgen contains information on news. items such as PCB, refrigerants, radon and OVK (obligatory

Environmental objectives for 2009, short-term & long-term, 2009-211 As of and including 2009 we have developed 4 new areas for inclusion in our environmental objectives. Two of our earlier objectives will continue into 2009. Our long-term environmental objectives have also been updated with the result that Wihlborgs is able to present new environmental objectives up to 2011: Environmental objectives 2009 2010 2011

1. Energy effectivisation - properties

(1.1) Electricity reduced by 2 %, Hea- 1.1 Reduce energy consumption by x % ting reduced by 2 %. (1.1) Reducing total energy consump- (1.1) Reducing total energy con- per year. (1.1) 2006-2009, reduction of 6 %. tion by 3 %. sumption by 3 %.

NEW 2. Renewable sources

(2.1) The energy and environmental (2.1) Projects which mean energy (2.1) Projects which mean energy 2.1 Promote innovations and invest in group will identify potential pro- that is partly renewable at a that is partly renewable at two energy from renewable sources. jects. Plan identified. property from our stock. properties from our stock. the environment 10 3. Phasing out hazardous materials (3.1) Clearing properties that were (3.1) Clearing properties that were (3.1) Clearing properties that were 3.1 Clearing PCB. reported to the environmental reported to the environmental reported to the environmental 3.2 Reporting clearing to the environmen- authority in 2008. authority in 2009. authority in 2010 tal authority. (3.2) New properties reported for (3.2) New properties reported for (3.1) Final objective – all cleared. 2010. 2010. NEW 4. Training/Communication (4.1) All who have not completed Wihl- (4.4) New “environment group” with 4.1 Basic training (4.2) Further training in environmen- borgs’ basic environmental train- non- “energy and environment 4.2 Further training tal issues. 100 % of Wihlborgs’ ing shall undergo this in 2009. employees” will meet twice a 4.3 Inspiration lecture(s) employees shall attend further (4.3) Joint environmental lecture for year led by an environment 4.4 Communication training during the year. all employees. manager. NEW 5. Green IT

(5.1) Integrate the concept of Green

5.1 Integrate IT and environmental issues. IT into our activities. The number The number of printouts shall The number of printouts shall 5.2 Reduce total counters for printouts. of printouts in 2009 will be decrease by comparison with 2009. decrease by comparison with 2010. identified.

NEW 6. Waste processing (6.1) Map and set an action plan for (6.1) Map and set an action plan for 6.1 Increase the number of fractions that (6.1) The costs of all properties identi- Wihlborgs’ top 50 properties Wihlborgs’ top 50 properties can be sorted. fied last year shall decrease. regarding highest costs for frac- regarding highest costs for tions.

Wihlborgs annual report 2008 3. 2.1 2. 1.1 1. Environmental objectives 6.1 6. 5.2 Reduce total counters for printouts. 5.1 Integrate IT and environmental issues. 5. 4.4 Communication 4.3 Inspiration lecture(s) 4.2 Further training 4.1 Basic training 4. 3.2 3.1 Clearing PCB. Green P R E materials W T energy from renewable sources. per year. can be sorted. tal authority. Promote innovations and invest in Reduce energy consumption by x % Increase the number of fractions that Reporting clearing to the environmen hasin ner rainin enewable sources sources enewable aste processin aste g y effectivisation effectivisation y IT g g/C out ha out ommunication z g ardous ardous - properties properties - (3.2) (4.3) (1.1) 2006-2009, reduction of 6 %. 2009 (2.1) (1.1) (6.1) (3.1) (5.1) (4.1) ing shall undergo this in 2009. borgs’ basic environmental train jects. Plan identified. group will identify potential pro The energy and environmental All who have not completed Wihl ting reduced by 2 %. regarding highest costs for Wihlborgs’ top 50 properties identified. of printouts in 2009 will be IT into our activities. The number all employees. 2010. New properties reported for authority in 2008. reported to the environmental Joint environmental lecture for Electricity reduced by 2 %, Hea Map and set an action plan for Clearing properties that were Integrate the concept of Green - - - - (3.2) 2010 decrease by comparison with 2009. The number of printouts shall (6.1) (4.4) (3.1) (2.1) (1.1) fied last year shall decrease. The costs of all properties identi property from our stock. that is partly renewable at a tion by 3 %. manager. year led by an environment employees” will meet twice a non- “energy and environment 2010. New properties reported for authority in 2009. reported to the environmental New “environment group” with Clearing properties that were Projects which mean energy Reducing total energy consump - - 2011 (3.1) Final objective – all cleared. decrease by comparison with 2010. The number of printouts shall (2.1) (1.1) (6.1) (4.2) (3.1) tions. regarding highest costs for frac Wihlborgs’ top 50 properties Map and set an action plan for training during the year. employees shall attend further tal issues. 100 % of Wihlborgs’ authority in 2010 reported to the environmental properties from our stock. that is partly renewable at two sumption by 3 %. Projects which mean energy Reducing total energy con Further training in environmen Clearing properties that were - - - 2008 Wi 2008 The building was inaugurated in the year 2000. year the in inaugurated was building The 2009. February in photographed building Sigma The hlborg s s a nnu al report 11 MILJÖ the environment the share

Wihlborgs’ shares were listed on the Stockholm Stock highest and lowest quotation for the Wihlborgs’ share Exchange’s O list on 23 May 2005. Wihlborgs have in 2008 was SEK 146.00 and SEK 65.25 respectively. In been on the Nordic Mid Cap list since October 2006. 2008 the total return on the Wihlborgs share, including At the end of the year the share capital amounted dividends of SEK 6,25 was -8.2 per cent. to SEK 192m distributed across 38,428,364 shares and 36,214,014 remaining shares. Each share is entitled to Net worth in the balance sheet one vote and each person entitled to vote at the annual The balance sheet’s assets and liabilities shall reflect general meeting may vote for the full number of shares the market value. Consequently, the net worth is cal- held and represented by this person. All outstanding culated on the basis of the balance sheet’s equity shares are entitled to an equal share in Wihlborgs’ adjusted for the minority share that amounts to SEK profit. The company has repurchased 1,217,000 of its 120 million. In this context, it shall be observed own shares during 2008. that Wihlborgs’ actual tax is lower that the nominal The board has not exercised its authority to decide tax rate of 26.3 per cent. This is because the sale of on a new issue of no more than 10 per cent of the properties is usually done without a tax cost and that remaining shares. the group receives a tax credit through different measures. This is primarily through the use of maximum Market capitalisation and turnover tax write-downs which result in tax discounting and In 2008 there was a turnover of a total of 49.5 million the tax payment is deferred. shares which corresponds to 196,000 shares per day. This corresponds to a turnover rate of 133 per cent of Shareholders’ equity per share, different tax rates the average number of outstanding shares. 26.3 % 13 % 10 % 5 % 0 % At the year end the price of a Wilhlborgs’ share the share 110,84 123,66 126,91 131,84 136,69 12 was SEK 100.00 which, with all outstanding shares,

corresponds to a share value of SEK 3.6 billion. The

Share development 2008 Shareholders, 31 Dec 2008

SEK Number of shares, ’000 180 12 000

135 9 000

90 6 000

45 3 000 ■ International ■ Financial owners, 35.5 % companies, 3 % ■ Swedish private ■ Insurance, pension 0 0 individuals, 22.8 % AP-funds, 3 % 2005 2006 2007 2008 ■ Funds, 17.7 % ■ Associations Wihlborgs OMX Stockholm PI ■ Swedish legal organisations, 2.5 % SX4040 Real Estate PI Share turnover persons, 15.5 %

Wihlborgs annual report 2008 The share/Key figures 2008 2007 2006 Share price at year-end, SEK 100,00 115,75 142,75 Development of share price during -13.6 -18.9 48.7 the year, % Profit per share, SEK -1,32 29,08 22,12 P/E ratio,times neg. 4.0 6.5 P/E ratio current management, times 11.2 13.9 17.8 Shareholders equity per share, SEK 110,84 116,29 92,30 Dividend per share, SEK 6,50 6,25 5,5 Yield, % 1 6.50 5.4 3.9 Total return during the year, % 2 -8.2 -15.1 52.3 Number of shares at year-end 36,214 37,431 38,428 Average number of shares, thousand 37,208 38,304 38,428

1. Dividend related to share price at year-end. 2. Development of share price in addition to dividend

Dividend and dividend policy Ownership structure Wihlborgs’ dividend policy is based partly on transfer- The largest shareholders in Wihlborgs are Brinova ring 50 per cent of the current investment result, and Fastigheter AB and Robur Funds who own 10.7 and partly 50 per cent of the realised result from property 7.0 per cent of the shares respectively. sales. Both were reduced by a standard tax rate of During the fourth quarter, Maths O Sundqvist with 26.3 per cent. The board’s dividend proposal for 2008 companies left Wihlborgs as its largest owner. At the is SEK 6.50 (6.25). This corresponds to a yield of 6.5 end of 2008, the ten largest shareholders held 33.3 per per cent based on the share price at the end of the year. cent of the shares and the number of shareholders If the AGM approves the board’s proposal for a divi- amounted to 26,470, an decrease with approximately dend of SEK 6.50 and the record day of 28 April, the 1,000 shareholders. The proportion of foreign owners dividend will be paid on 4 May 2009. The Wilhlborgs’ at the end of December amounted to 35.5 per cent, an share will be traded including the dividend up to and increase of 10.2 per cent since the previous year end. including the day of the AGM, Thursday 23 April Of the foreign owners, 29 per cent are from the USA, 2009. 25 per cent from Great Britain, 19 per cent from Lux- emburg and 4 per cent from the Netherlands. the share 13 WIHLBOR g S ’ FA C T S / T H E S H A R E

Stock symbol WIHL Largest shareholders in Wihlborgs Number of shares Percentage of shares 31 december 2008 thousands and capital, % Listed since 2005 Brinova Fastigheter AB 3,867 10.7 Traded OMX Nordic List Robur Funds 2,538 7.0 Segment Mid Cap Handelsbanken Funds 1,177 3.2 Sector Financial Länsförsäkringar Funds 964 2.7 Investment AB Öresund 945 2.6 SEB Funds 748 2.1 Mats Qviberg including family 691 1.9 Tibia Konsult 451 1.2 Skandia Liv 381 1.1 Skandia Funds 281 0.8 Other shareholders reg. in Sweden 11,314 31.2 Shareholders reg. abroad 12,857 35.5 Total outstanding shares 36,214 100.0 Share buy-backs 2,214 Total registrered shares 38,428

2008 Wihlborgs annual report Copenhagen stabilises Skåne

The Öresund region is now also showing signs of on growth in the Nordic countries in 2009. decline. But since Denmark and Sweden have expe- According to SEB Nordic Outlook, the GNP rienced different phases in the economic cycle since in the OECD-area will fall by more than 1 per the turn of the millennium, Copenhagen can be a sta- cent in 2009. This represents the weakest bilising factor. Among the reasons for this is the growth since the Second World War. At the expectation that unemployment in Sweden will rise to same time, an extensive and synchronised sti- 7.6 per cent in 2009 compared with 3.8 per cent for mulation policy will take shape. Interest rates Skåne according to Arbetsförmedlingen. fell significantly when the central banks’ thre- Towards the end of 2008, the economic climate at scenario was increasingly dominated by changed considerably and this will have a major impact recession, financial crisis and worry about deflation. Furthermore, the financial policy was used on a broad front to lessen the down- Office rent in Malmö 2000-2008, price per sqm/year. turn. Source: Newsec Since 2004, the property market has been 2000 characterised by increasingly lower yield demands. This is a consequence of increasing

1800 capital flows driven by increasing loan facilities. This growth ceased during 2008 and it is now expected that yield demands will increase et overview 1600 once again while lease levels will no longer

CBD increase at the same rate as before. Investors

MARK 1400 Western Harbour have been quick to adapt to the new criteria which no longer apply to vendors to the same

1200 high extent. This has been shown in increa- 14 sing price differences. This, in turn, has resulted in increasingly extended or postponed 1000 deals and, in certain cases, deals that cannot 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009p 2010p be completed at all. But, at the same time, the Nordic countries have a large property market, high liquidity and good transparency. There are low Vacancy rate offices in Malmö 2000-2008, per cent/year Source: Newsec transfer costs, similar legislation and a stable political and economic situation. Seen 18,0 in total, this means that the Nordic property market will continue to be an attractive 15,0 CBD market for investors. However, turbulence

Western Harbour will continue to remain high which means 12,0 that the potential for predicting future growth in the short term will be more difficult than normal. 9,0

Sweden facing difficult times 6,0 Difficult times now await after a number of years of good economic growth. The econo- 3,0 mic foundations are stable but, like other 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009p 2010p countries in the world, Sweden is affected by

Wihlborgs annual report 2008 Copenhagen stabilises Skåne

international turbulence within the financi- Nordic investors can be interpreted as an indication that these al sector. GNP growth in 2008 stood at 0.8 are affected by the financial crisis to a lesser extent. per cent but, according to Øresundsinsi- Despite the slowdown during the first half of 2008, NewSec tittutet, it is expected to fall by 1.6 per cent expects that the number of deals that are completed will reach a during 2009. relatively high level during the year primarily as a result of the According to NewSec, the demand for number of major deals that were completed in the beginning of modern office properties has increased on the third quarter. the major lease markets. This has led to lower vacancy levels and increased lease The Öresund region will cope better et overview costs. This applies, for example, to central As early as the end of 2007 it was considered that the absolute Stockholm, Western Harbour and the cen- peak of the business cycle had been passed in the Öresund regi- tre of Malmö as well as Norra Älvstranden on. A tangible decline was noted as early as last autumn on the MARK and the centre of Gothenburg. According to Danish side with a decline in demand at a high level within

NewSec, there is reason to believe that this industry, the construction sector and vehicle sales. There were, 15 growth can continue to some degree in Malmö however, few signs of a decline within important industries in and Gothenburg whereas it will level off in Skåne at this time. Stockholm. According to Øresundsinstituttet, the GNP for Själland The Swedish labour market has been decreased by 1 per cent during 2008 and is expected to decrease strong for a number of years and unemployment reached record low levels during the by 1.8 per cent during 2009. Where Skåne is concerned, the GNP middle of 2008. However, it then began to increased by 1 per cent in 2008 and is expected to decline by 1.5 rise during the last months of the last year per cent during 2009. This can be compared with Sweden’s GNP when the number of people being warned of which, according to Øresundsinstituttet, increased by 0.8 per cent redundancy increased significantly. In total, this year and is expected to decrease by 1.6 next year. 6.4 per cent were unemployed during 2008 Unemployment in the region was low in 2008 but is expec- and, according to Arbetsförmedlingen, the ted to increase during 2009. During 2008, unemployment was forecast for 2009 is 7.6 per cent. 3.3 per cent in Skåne and 1.7 per cent in the capital city region. The Swedish property market in recent The forecast for 2009 is 3.1 per cent for the capital city region/ years has become increasingly the focus of Själland and 3.8 per cent in Skåne. The corresponding figures international investors. From being only a for Sweden as a whole are 6.2 per cent for 2008 and 7.6 for 2009. few per cent of the market, they became Despite the turbulence on the financial market, there has more than half during 2007. However, the been strong interest in investing in Malmö. Both domestic and financial turbulence has broken the trend international investors have shown interest in all types of pro- and, during the second half of 2008, the perty. The number of companies who have chosen to become international investments made up a third established in Malmö has increased in recent years. According of the market. The increasing dominance of to information from the city of Malmö,

2008 Wihlborgs annual report more than 40 new companies were established in 2008 have to be postponed in case the recession of which four were head offices. continues. Consequently there will probably Economic growth in Malmö decreased in 2008 be a balance between supply and demand in but the prediction is that the labour market will con- the years to come as well. tinue to be strong. During 2009, the number of Copenhagen is also expected to be a sta- people in employment is expected to decrease by 0.3 bilising factor in the Öresund region. The per cent. The degree of vacancy in central Malmö is reasons for this include its business and 6 per cent. This is primarily a consequence of an commerce structure where industry plays a increased demand for office space. The continued less prominent role, and the large number conversion of antiquated, inefficient office premises of jobs in the public sector. This can lead to to other uses has also had a positive effect on the the downturn in the economy around Öre- degree of vacancy. sund being less noticeable in many other Lease levels have been increased as demand has sectors of the Swedish and Danish economies. increased and the degree of vacancy decreased. The highest lease rates are currently found in Western Harbour and at Universitetsholmen where the majority of the modern office properties are located. Here the lease levels lie between SEK 1,800 and 2,200/sq.m. The high demand for modern office premises has also led to high activity within the newbuilding sector. During 2009 and 2010 it is expected that 50,000 sq.m. Sources: Arbejdsmarkedstyrelsen Denmark, Arbetsförmedlingen of office space will be completed in Malmö. 90 per cent Sweden, Denmarks Statistik, SCB, Malmö Stad, Newsec, of the area has already been leased. Projects after that Nordea Denmark, Øresundsinstituttet, Øresundsbarometern. et overview MARK

Wihlborgs annual report 2008 property portfolio

Wihlborgs’ property portfolio consists of Malmö is divided into the sub-markets of Centre & Western Har- commercial properties in the Öresund bour, Fosie & Limhamn and Northern Harbour & Arlöv. Centre region. 73 per cent of the market value & Western Harbour, with a lettable area of 280,000 sq.m., is belongs to office/retail and 20 per cent to Wihlborgs’ largest single sub-market. industrial/warehouse. The properties are Helsingborg is divided into sub-markets of Centre, South and located in Malmö, Helsingborg, Lund and Berga. The Centre sub-market is Wihlborgs’ largest sub-market Copenhagen. As of 31 December 2008, in Helsingborg. the property portfolio comprised 247 pro- In the rest of the Öresund region, Wihlborgs primarily perties with a total lettable area of some owns properties in Copenhagen and Lund with a property 1,257,000 sq m. Fifteen of these properties value of SEK 2,612m. have a site leasehold right. The book value Wihlborgs implements regular value-creating project within of the properties was SEK 13,620m, which the existing property portfolio by conversion, extension and corresponds to the properties’ assessed new production. Projects & land account for SEK 956m of the market value1. The total rental value was total book value of the properties. Wihlborgs’ largest develop- SEK 1,314m and the contracted rental ment area is the Dockan area, in Western Harbour in Malmö. income was SEK 1,217m on an annual Wihlborgs current and future building rights in the Dockan basis. The economic occupancy rate was area are estimated at 60,000 sq.m. 93 per cent.

The properties in Malmö and Helsingborg accounted for 83 per cent of the total rental value and 81 per cent of the properties’ book value. The rental value of office and retail properties, in addition to industrial and warehouse properties, totalled 69 and 27 per cent of the total rental value respectively.

The properties in Malmö and Helsing- property portfolio borg, where Wihlborgs is one of the leading 17 property companies, are divided into sub- markets with different market conditions. Wihlborgs’ property portfolio is located in the Öresund region – the most densely populated region in the Nordic region with 3,6 million inhabitants, of whom 2,4 million live in Denmark and 1,2 million in Sweden.

rental value rental value book value book value per region per property category by region per property category

Helsingborg, 31 % Malmö, 52 % Industrial/Ware- Office/Retail, Helsingborg, Malmö, 53 % Project & Land, Office/Retail, house, 69 % 28 % 7 % 73 % 27 % Industral/ Project Warehouse, & Land, 20 % Rest of 4 % Rest of Öresund, Öresund, 17 % 19 %

1. Wihlborgs reports its investment properties (in accordance with IAS Investment Property) at their market value, which means that the book value corresponds to the market value of the investment properties. Properties classified as project properties (according to IAS) are reported at their acquisition value. With the exception of a land site in Malmö, all Wihlborgs properties are classified as investment properties.

2008 Wihlborgs annual report property portfolio as of 31 december 2008 The schedule presented below is based on Wihlborgs’ property basis of the contractual rental income, ope- portfolio as per 31 December 2008. Rental income refers to rating and maintenance costs and property contractual rental income on an annual basis as of 31 December administration over a rolling twelve months 2008. Net operating income is based the earnings capacity on and property tax and ground rent. Round an annual basis as of 31 December 2008, proceeding on the down/up differences can occur in below tables. distribution by region and property category

Number of Lettable Economic Rental Net op. properties area, Book value Rental value, occupancy, income, income, Yield, Surplus ratio, sq.m. SEK M SEK M/sq.m. SEK M SEK M/sq.m. % SEK M SEK M % % Distribution by region Malmö 121 580,127 7,268 12,529 685 1,182 91 624 442 6.1 71 Helsingborg 89 460,897 3,739 8,113 406 881 96 388 275 7.3 71 Rest of Öresund region 37 216,386 2,612 12,072 222 1,027 93 206 162 6.2 79 Total Wihlborgs 247 1 257,410 13,620 10,831 1,314 1,045 93 1,217 879 6.5 72

Distribution by category Offices/retail1 92 632,881 9,989 15,783 906 1,432 95 859 639 6.4 74 Industrial/warehouse 106 539,926 2,676 4,955 354 655 93 329 230 8.6 70 Projects & land 49 84,603 955 11,294 53 630 56 30 10 1.1 34 Total Wihlborgs 247 1 257,410 13,620 10,831 1,314 1,045 93 1,217 879 6.5 72

distribution by property category by region

Region/ Number of Lettable Economic Rental Net op. property category properties area, Book value, Rental value, occupancy, income, income, Yield, Surplus ratio, sq.m. SEK M SEK M/sq.m. SEK M SEK M/sq.m, % SEK M SEK M % % Malmö Offices/retail 40 320,988 5,757 17,934 518 1,613 95 490 362 6.3 74 Industrial/warehouse 44 190,131 962 5,062 130 681 92 119 80 8.3 67 Projects & land 37 69,008 549 7,958 38 551 38 15 1 0.1 4 Total Malmö 121 580,127 7,268 12,529 685 1,182 91 624 442 6.1 71

Helsingborg Offices/retail1 35 157,152 2,025 12,883 198 1,263 97 193 139 6.9 72

property portfolio Industrial/warehouse 50 289,884 1,453 5,014 195 671 94 182 128 8.8 70 18 Projects & land 4 13,861 261 18,845 13 929 100 13 8 3.1 64 Total Helsingborg 89 460,897 3,739 8,113 406 881 96 388 275 7.3 71

Rest of the Öresund region Offices/retail 17 154,741 2,207 14,264 190 1,229 92 175 138 6.3 79 Industrial/warehouse 12 59,911 260 4,336 30 494 95 28 22 8.5 78 Projects & land 8 1,734 145 83,685 2 1,382 98 2 2 1.1 65 Total rest of Öresund 37 216,386 2,612 12,072 222 1,027 93 206 162 6.2 79

Total Wihlborgs 247 1 257,410 13,620 10,831 1,314 1,045 93 1,217 879 6.5 72 Total excluding 198 1 172,807 12,664 10,798 1,260 1,074 94 1,188 868 6.9 73 projects and land

distribution of lettable area by region and type of premises

Lettable area by type of premises Region Offices Retail Ind./Wareh. Hotel Residential Other Total, Proportion, sq.m. sq.m. sq.m. SEK M/sq.m. SEK M/sq.m. sq.m. sq.m. % Malmö 289,543 32,574 244,162 2,947 6,023 4,879 580,127 46.1 Helsingborg 153,551 39,649 233,809 20,799 5,322 7,767 460,897 36.7 Rest of the Öresund reg. 128,903 4,593 82,638 253 216,386 17.2 Total Wihlborgs 571,996 76,815 560,609 23,746 11,345 12,899 1 257,410 100.0 Proportions, % 45.5 6.1 44.6 1.9 0.9 1.0 100.0

1. Two hotel properties located in Helsingborg, with lettable area of 21,262 sq.m. are reported in offices/retail.

Wihlborgs annual report 2008

Rental value and occupancy rate Rental income and lease structure The total rental value of the property port- For Wihlborgs property portfolio at 31 December 2008, contrac- folio at 31 December 2008 amounted to tual rental income on an annual basis was SEK 1,217m. Rental SEK 1,314m, of which the rental value for income includes surcharges for property tax, heating and elec- vacant premises is estimated to account for tricity costs that Wihlborgs passes on to tenants. SEK 172m. The properties’ total lettable At 31 December 2008, Wihlborgs has a total of 1,824 leases area at 31 December 2008 was about with a contractual rental income of SEK 1,181m and an average 1,257,000 sq.m. maturity of 3.3 years. Leases with a maturity of 3 years of more The economic occupancy rate at 31 are normally subject to annual rent adjustments in view of chan- December 2008 was 93 per cent, with 91 ges in the consumer price index. Overall, the index clauses in per cent in Malmö, 96 per cent in Helsing- Wihlborgs’ leases mean that rents rise at a pace of 90 per cent of borg and 93 per cent in the rest of the Öre- the rate of inflation. sund region. Rental income from Wihlborgs’ ten largest tenants totalled The occupancy rate for office and retail SEK 231m on an annual basis at 31 December 2008, correspon- property was 95 per cent, with 93 per cent ding to 19 per cent of the contractual rental income. for industrial and warehouse facilities and 56 per cent for projects & land.

Contractual rental income as per maturity structure for wihlborgs’ leases the ten largest 31 december 2008 by lease value as per 31 december 2008 tenants Contractual size, Number Lettable Per 31 dec 2008 Number Lettable Per 31 dec 2008 SEK M of leases area sq.m. SEK M propo,% Expires in year of leases area sq.m. SEK M propo, % Tenant Area Leases for renting premises Leases for renting premises >3,0 77 410,550 517 44 2009 618 273,198 238 20 ABB Malmö 2,0-3,0 37 87,277 91 8 2010 462 236,615 262 22 Elite Hotels Helsingborg 1,0-2,0 152 203,389 213 18 2011 388 252,645 258 22 Green Cargo Copenh./Helsingb. 0,5-1,0 231 151,504 155 13 2012 230 138,963 155 13 Helsingborgs City Helsingborg 0,25-0,5 314 118,705 113 10 2013 54 49,617 54 5 Lunds University Lund <0,25 1,013 116,933 92 8 2014 30 74,859 117 10 Malmö University Malmö Total commercial leases 1,824 1,088,358 1,181 100 >2014 42 62,461 97 8 Malmö City Malmö Residential leases 161 11,345 11 Total commercial leases 1,824 1,088,358 1,181 100 Region Skåne Malmö/Helsingb. property portfolio Parking spaces etc 463 0 25 Residential leases 161 11,345 11 TeliaSonera Malmö 19 Total 2,448 1,099,703 1,217 Parking spaces etc 463 25 Tullverket Malmö/Helsingb. Total 2,448 1,099,703 1,217

trends in gross rental income and occupancy rate for wihlborgs’ property portfolio

Per 31 December 2005 Per 31 December 2006 Per 31 December 2007 Per 31 December 2008 Rental value1, Economic Rental value, Economic Rental value, Economic Rental value, Economic SEK M occupancy, % SEK M occupancy, % SEK M occupancy, % SEK M occupancy, % Distribution per region Malmö 443 92 592 93 634 92 685 91 Helsingborg 275 91 331 91 374 95 406 96 Rest of the Öresund region 121 87 156 89 217 90 222 93 Total Wihlborgs 839 90 1,079 92 1,224 93 1,314 93

Distribution per category Offices/Retail2 566 92 758 92 865 93 906 95 Industrial/Warehouse 251 88 305 90 347 92 354 93 Projects and land 22 83 16 71 13 65 53 56 Total Wihlborgs 839 90 1,079 92 1,224 93 1,314 93

1. Rental income during the period plus the rental value of vacant premises during the period. 2. Two hotel properties located in Helsingborg, with lettable area of 21,262 sq m are reported in offices/retail.

2008 Wihlborgs annual report property expenses Distribution of responsibility between Operating expenses landlord and tenant Wihlborgs’ largest operating expenses are heating, electricity Tenants in commercial premises, and pri- and water as well as property upkeep. Examples of other marily in industrial and warehouse premi- operating expenses are insurance, security and alarm sys- ses, have a relatively large responsibility for tems as well as refuse management. Operating expenses for both operating and maintenance expenses. the property portfolio during 2008 totalled SEK 178m. Normally, Wihlborgs assumes responsibility Wihlborgs is focusing in effectiveness in management for exterior maintenance and tenants for and work continuously together with the tenants to reduce interior maintenance of the buildings. In the operating expenses. The tenants are charged with a great Denmark, tenants are to a large extent deal of the operating expenses and therefor the impact of responsible for all operating expenses. Wihlborgs operation surplus becomes limited. Property administration Repairs and maintenance costs Property administration consists mainly of Ongoing and scheduled repairs and maintenance measures expenses for rent invoicing, leasing and are conducted to maintain the state of repair and standard marketing. Wihlborgs expenses for proper- of properties. Costs for repairs and maintenance during ty administration during 2008 amounted to 2008 totalled SEK 51m. SEK 52m.

Property tax and ground rent Surplus ratio State property tax is currently 1.0 per cent of the tax assess- The net operational income in relation to ment value for commercial property and 0.5 per cent for the rental income, surplus ratio, was 72 per industrial property. A property charge of SEK 1,200 per cent. apartment is paid for Wihlborgs’ housing properties. Special properties i.e. schools and care properties are not subject to INVESTments property tax. Expenses arising from value-enhancing The tax assessment value for the property portfolio at 31 measures in existing properties are repor- December 2008 amounted in Sweden to SEK 5,969m and the ted as investments and are not expensed. property tax amounted to SEK 52m. Of the Group’s total pro- Examples of investments are costs arising perty tax, SEK 46m is passed on to tenants through rent sur- from project development and customisa- charges. Ground rent for Wihlborgs’ properties held on lease- tion for tenants. Investments in 2008 hold amounted to SEK 3m. totalled SEK 622 million. A more detailed description of project activities is given on property portfolio 20 pages 34-35.

Wihlborgs annual report 2008 2008 Wihlborgs annual report annual Wihlborgs 2008 21 FASTIGHETSBEST property portfolioÅ n d Åsa Söderberg, Skånes Dansteater. ”Audience figures have property portfolio 22 increased noticeably” Skånes Dansteater previously suffered from overcrowding. This had an impact on staff wellbeing and the dance company’s ability to realise its artistic potential. A dance company needs good quality and appropriate premises if they are to perform at their best. – The fact that we are no longer overcrowded is an understatement. Wihlborgs has provided us with quite unique premises that are entirely appropriate for a dance company. If we are to believe what our audiences say, the premises for our activities are among the best in Europe, says Åsa Söderberg, CEO and artistic director of Skånes Dansteater. Life is now a dance – To give an example, we have slightly resilient floor on the stage and in the rehearsal rooms. This helps us avoid many injuries. We also have a gym, massage room and sauna, she continued. But perhaps the most important is the smart layout: – The different parts of the organisation provide visual contact all the time. The people in the office can see the dance studio and vice versa. This provides us with a quite different feeling of belonging together compared with what we had before. For me as the artistic director, everything is much easier and freer. Since we moved here in 2005 we have been able to expand our public activities by 40 per cent and our audience figures by much the same amount, concluded Åsa Söderberg.

Wihlborgs annual report 2008 Lennart Jönsson (to the left) ”The property portfolio in Malmö consisted at 31 december 2008 is responsible for the Western Harbour and Centre areas of 122 properties, of which 11 were held on leasehold, with in Malmö. total lettable area of 580,000 sq.m.” Johan Ohlsson (to the right) is responsible for the Fosie, Limhamn, Northern Har- Malmö bour and Arlöv areas. In value terms, Malmö represents Wihl- ment purposes at Dockan with a rentable area of 102,000 sq.m. borgs largest location, with a total property Dockporten 1 was completed during the year. This is where value of SEK 7,268m as of 31 December Mercedes-Benz has its Nordic head office. Continued construc- 2008, corresponding to 53 per cent of the tion of office buildings for clients such as ÅF and a car park buil- company’s total property value. Properties ding is in progress and will be completed during 2009. Wihlborgs in Malmö, Lomma and Burlöv are located has also signed a lease agreement with Region Skåne who will in Malmö. move into a new office block in 2010. The property portfolio in Malmö con- The newly-constructed buildings at Western Harbour, with sisted at 31 December 2008 of 121 proper- modern premises that make efficient use of space have a competi- ties, of which 11 were held on leasehold, tive advantage compared with the older office property stock in with a total lettable area of about 580,000 Malmö. The demand for offices at Western Harbour it expected sq m. The rental value of the properties to remain good. totalled SEK 685m and the contractual ren- Wihlborgs estimates the rent level in Centre & Western Harbour tal income, as of 31 December 2008, was for modern office area at SEK 1,800–2,200 persq.m . Correspon- 624m on an annual basis. Of the property ding office rent for older office properties is estimated at SEK value, about 79 per cent were office and 1,600–1,900 per sq.m. Total occupancy rate in the sub-market retail properties. is 95 per cent. The property portfolio in Malmö is divi- Wihlborgs’ properties in Centre and ded into three sub-markets: Centre & Wes- Western Harbour in Malmö. tern Harbour, Northern Harbour & Arlöv and Fosie & Limhamn.

Centre and Western Harbour

At 31 December 2008 the property portfo- property portfolio lio in Centre and Western Harbour con- 23 sisted of 41 properties with a lettable area of about 280,000 sq.m. 77 per cent of the lettable area is offices. The properties are mainly located in the old town and in the Dockan area in Western Harbour. During 2008, Wihlborgs’ acquired the Väktaren 3 block, also referred to as Scan- dinavian Center, covering approximately 8,300 sq m. This lies right next to one of Citytunneln’s planned exits. In value terms, the largest properties are Erik Menved 37 and Skrovet 6 with lettable area of 24,000 and 13,000 sq.m., respectively. Wihlborgs largest tenants in this area are TeliaSonera, Malmö Högsko- la, Tullverket and Mercedes-Benz. Dockan at Western Harbour is Wihl- borgs greatest development area and this is where expansion and the construction of The properties in central Malmö are mainly located in Western Harbour and in the old town. Western new properties are taking place. Wihlborgs Harbour is Wihlborgs’ largest development area and Malmö’s largest future expansion area. For pro- currently owns ten buildings held for invest- perty details, see List of properties.

2008 Wihlborgs annual report Stefan Sönderby, Gödecke Frakt & Trailer.

property portfolio ”Even the small 24 organisation has their ear” The German company Gödecke Frakt & Trailers’ Swedish branch runs its activities with Malmö as its base, five employees and ten vehicles. Scandinavia is its principal market. Gödecke has a total of 70 employees and 110 vehicles in Germany, Poland and Sweden. – A few years ago we had larger premises, too large for us really. They were also with Wihlborgs who, one day, contacted us with an offer of different premises that could suit us better while, at the same time, they had another tenant who could make better use of the extensive square footage. They offered us a good alternative just a few blocks away, said Stefan Sönderby who is managing director of Gödecke in Sweden. Stefan Sönderby and his colleagues accepted.

Freight company given help to move

– Wihlborgs rearranged our new premises just as we wanted them without quibbling. They took responsibility for the move and even gave us a token of compensation for our trouble. Gödecke has remained satisfied since then: – We are in contact with our administrator throughout the year, either because he is passing by to update us about something, or just to say Hello, or when we need him. He is always available and responds quickly when anything arises, concluded Stefan Sönderby.

Wihlborgs annual report 2008 Northern Harbour and Arlöv Fosie and Limhamn At the end of last year, the property stock in Wihlborgs’ property stock at Fosie and Limhamn as at 31 the suburb of Northern Harbour and Arlöv December 2008 was 38 properties totalling 130,000 sq.m. of amounted to 170,000 sq.m. and was divided rentable area. The properties in the suburb are mostly at Fosie, into 42 properties. In addition to Northern Elisedal and the Annetorp industrial areas. Harbour and Arlöv the properties are loca- At Fosie the properties are made up of commercial, industri- ted at Bulltofta, Valdemarsro and Sege al, logistic and office premises. The properties in Limhamn are industrial areas. made up of small warehouses and offices. The largest property The properties at Northern Harbour in the suburb is Boplatsen 3 with a rentable area of 27,000 sq.m. are primarily warehouse and industrial The property also has the area’s largest tenant, ABB. buildings. At Arlöv, Bulltofta and Valde- The industrial areas at Fosie and Limhamn are well-established marsro the properties house industrial and popular. They lie adjacent to the outer and inner ring and office areas and are smaller in size. roads and this provides easy access to the Euro route network. The Sege area has the largest property, Furthermore, public transport from the rest of the Malmö area Kirseberg 31:53, with a rentable area of is well-developed. 25,000 sq.m. The property also has the During 2008, Wihlborgs’ second largest tenant Logica, loca- area’s largest tenant, DHL. ted at Fosie, extended its premises. During the year Wihlborgs The industrial areas at Northern Har- also became established at the new Svågertorp industrial area. bour and Arlöv are located close to the This is where Honda’s new Nordic head office and training cen- major communication routes. The feeling tre are being constructed. IKEA will be establishing a new out- is that the demand for premises in the har- let close by. During 2008, Wihlborgs sold a property at Lim- bour areas will gradually increase as the hamn covering 1,600 sq.m. conversion of the inner harbour areas is It is Wihlborgs’s assessment that the lease level for offices in commenced. Fosie will amount to SEK 1,000 per sq.m and for industrial pre- During 2008 Wihlborgs acquired a pro- mises/warehouses at both Fosie and Limhamn it will be approx- perty of 7,000 sq.m. and 37,000 sq.m. of imately SEK 800 per sq.m. Occupancy rate at Fosie is 95 per land in the suburb. cent and at Limhamn 96 per cent. It is Wihlborgs’ view that the lease cost for warehousing within the suburb will amount to SEK 600 per sq.m. Occupancy rate at Northern Harbour, Bulltofta, Valde- marsro and Sege is 91 per cent and in Arlöv 90 per cent. property portfolio Wihlborgs’ sub-markets in Fosie 25

Wihlborgs’ sub-markets in Arlöv/Northern Harbour

2008 Wihlborgs annual report Rolf Svensson, Skatteverket in Helsingborg. ”They listen and understand” property portfolio 26 The Swedish Tax Agency in Helsingborg has rented premises from Wihlborgs since the beginning of the 1970s. And, since he started work there a few years ago, Rolf Svensson has been responsible for the premises and has managed contacts with Wihlborgs. – When I began, we needed to totally renovate or even move but our location in the town felt right and we were happy with it. It is important for us to be accessible. But when Wihlborgs purchased the old police building we looked at the potential of having our office there, says Rolf Svensson and continued, – We also received a central directive which stated that we needed to minimise our lease costs by consolidating. In practice this meant that we had to forfeit our individual offices and move to an open plan office. The Swedish National Tax Board appreciates the police building Rolf Svensson considered moving out temporarily and then moving back again after a complete renovation. But, in hindsight, he was pleased that there was only one move and not two. – Just imagine our archives. Three thousand cardboard boxes to pack, move and unpack again! And our new location in the town is, in fact, better than before. We are much more accessible to people who need to visit us now, not least because of our parking facilities. – We are very satisfied with our new premises. They are modern, beautifully light and we are really happy here. The dialogue with Wihlborgs and their archi- tect has worked really well – that’s something I’d like to stress, concluded Rolf Svensson.

Wihlborgs annual report 2008 Håkan Gillisson is respon- ”The property portfolio in Helsingborg con- sible for the South area in sisted at 31 December 2008 of 89 properties, Helsingborg. Mathias Bengtsson of which 4 are held on leasehold, with a total is responsible for the Berga area in Helsingborg.

lettable area of 461,000 sq.m.” Jan-Erik Johansson is responsible for the Centre area in Helsingborg.

Helsingborg In terms of value, Helsingborg represents Wihlborgs second largest location with a total property value as of 31 December 2008 of SEK 3,739m, corresponding to 28 per cent of Wihlborgs total property value. At 31 December 2008, the property portfolio in Helsingborg consisted of 89 properties, of which 4 are held on leasehold, with a total lettable area of 461,000 sq.m. The rental value totalled SEK 406m and the contractual rental income was SEK 388m annually. The property portfolio in Helsingborg is divided into three sub-markets: Centre, South and Berga.

Centre The housing stock in the centre of Helsingborg as at 31 Decem-

Wihlborgs’ properties in Helsingborg are located in three ber 2008 comprised 21 properties covering 109,000 sq.m. submarkets; Centre, South and Berga. The property locations The ten largest tenants are responsible for just under 50 per are fairly concentrated within each sub-market, facilitating efficient property management. cent of the income and include Helsingborgs Stad (the Munucipality of Helsingborg), the Swedish National Courts Administration,

Region Skåne, the Swedish Tax Agency, IKEA, Marina Plaza, property portfolio Hyresgästföreningen (the Swedish Union of Tenants) and 27 Friskis & Svettis. Wihlborgs is the largest player in the centre with a market share of just under 30 per cent. Our size and strength make us a natural partner for companies that are looking for new premises and an opportunity of being included in and influencing what goes on in the centre. The market continued to be strong during 2008 and this meant fewer options to choose from by people looking for premises. The properties economic occupancy rate was sky-high 98 per cent at the year end. The lease costs for office premises amount to between SEK 1,400 and 1,900 per sq.m. The rebuilding of the old police building (Polisen 3) took place during the year and the property is now fully leased with IKEA, the Swedish Tax Agency and Cultura as tenants. As a result of move, the Swedish Tax Agency vacated Wihlborgs’ property Kalifornien 10 that was originally built for them. A new lease agreement was signed after the year end with Utvecklings- nämnden who gathered their different units in one place. The agreement covers approximately 4,300 sq.m. and means that the The properties in central Helsingborg comprise 47 per cent of the total portfolio value in Helsingborg. For property details, property is fully occupied once more. see List of properties.

2008 Wihlborgs annual report Michael Liverstam, Sita in Helsingborg. ”They responded property portfolio 28 and wanted to help” Sita is one of Sweden’s largest companies in recovery and waste management. Around 90 people, including contract drivers, work in Helsingborg where Sita has its largest branch. The property houses a number of offices and about 50 vehicles and, regrettably, frequent burglaries and considerable vandalism were experienced over a number of years. – On average we experienced two incidents a week in the form of break-ins and theft. Diesel was thrown around the place, windows were smashed, computers were stolen and vehicles vandalised, tells Departmental Manager Michael Leverstam with hardly-concealed annoyance. The fence stopped the thefts – It was Wihlborgs who took the initiative since they were aware that there were problems throughout the area. When they asked if I would like an electric fence around the property I jumped at the chance. Break-ins and damage are expensive so the minor increase in our lease cost has been saved many times over. We have not suffered a single incident since Wihlborgs installed the fence in January 2008! But, as far as Michael Leverstam is concerned, savings are not the most important consideration. – Before, those of us who work here were concerned and frightened when we came to work in the mornings - would we be able to do our rounds or, in the worst case, would we be confronted by an aggressive burglar? We don’t have to worry about that now since the fence has given us a sense of security and peace of mind!

Wihlborgs annual report 2008 South The properties in this suburb are concen- compartments and with a security fence are located here. trated at the Hamn-City (Sydhamnen), Tenants include Pharmaxim and Jinnestål Etikett. Planteringen and Ättekulla activity areas. The lease level in 2008 was good and the occupancy rate at Wihlborgs’ shares of the total premises the year end was 91 per cent. Wihlborgs reckons that the lease areas within the respective areas are 42, 65 cost for industrial/warehouse properties at South amounts to and 8 per cent. At the end of 2008 Wihl- SEK 450-600 per sq.m. and SEK 800-1,200 per sq.m. for office borgs owned 205,000 sq.m. at South divi- and commerce. ded into 31 properties, mostly industry, warehouses and commerce. Berga With its proximity to major traffic routs Wihlborgs continues to grow at Berga and Väla south. During and Ramlösa station, the demand for pre- the year a total of approximately 16,000 sq.m. was constructed mises increased in 2008 for what is referred and acquired. The concept of these properties is the same as the to as Kapplöpningsområdet within Plante- rest of Wihlborgs’ stock, i.e. flexible buildings that house many ringen. Major tenants include Green Cargo, types of activities. Nedermans, Swedfruit, Lernia, Willys and At the end of the year 2008 Wihlborgs owned 37 properties ÖB. Urban renewal is planned for this area comprising 147,000 sq.m. In historical terms, the economic when the railway will be moved down into a occupancy rate is 97 per cent and this is very high occupancy tunnel below ground. This is known as the rate. The forecast for 2009 for Berga and Väla south is that the H+ project. Construction is expected to occupancy rate decreases somewhat. Furthermore it is our opi- commence in 2012 and will last for five nion that lease costs will continue upwards by approximately 4 years. per cent since the availability of good premises is very limited. An investigation into the change of the Wihlborgs estimates the general occupancy rate to be 93 per traffic route to Hamn-City is in progress. cent. The lease levels for shop premises amount to approximate- This would make the area even more access- ly SEK 1,100 per sq.m., offices SEK 1,200 per sq.m. and heated ible and will of course favour Hamn-City. storage buildings SEK 700 per sq.m. With one of Sweden’s largest harbours as its Wihlborgs is well-prepared for a quieter market situation nearest neighbour, the demand for premi- with an effective management organisation close to our custo- ses has been good in recent years. This is mers. Our properties are in good condition. Component repla- also where Green Cargo, one of Wihlborgs’s cement such as windows, roof, switchgear etc took place in pre- largest tenants is located in addition to vious years. Wihlborgs, together with its tenants, has also TNT, Yves Rocher and CDG Stroede Ral- invested in creating safer and more secure premises over a num- ton. With a direct connection to the E4/E6, ber of years. To give examples, the properties have unbreakable the properties within Ättekulla are very windows and are surrounded by an electric fence.

well-positioned. Buildings divided into property portfolio 29

2008 Wihlborgs annual report Malin Andersson, Scalado. “They help us to grow”

Scalado is a developer of image processing software for mobile phones, primarily camera phones which allows users to see high-quality images on their phones, scroll quicker and more easily through images and, not least, take pictures faster. Every- property portfolio 30 body has experienced this. You press the button on your camera phone and you have to suffer the irritating second’s delay before the actual picture is taken. We can get rid of the second’s delay using our software, says Scalado’s Malin Andersson. Scalado was started in Lund in 2000 by four students. Scalado now has 50 employees and a number of contracted consultants. The company has offices in Lund in Sweden and in Korea and will soon be opening an office in the USA. Malin Andersson continued, – We doubled the number of staff in 2008. It is obvious that things are going well for us. We have all the large mobile manufacturers as our customers today such as SonyEricsson, LG and operating system developer Symbian that is now owned by Nokia. Today Scalado occupies the Beta4 building at Ideon in Lund:

Building for booming image processor

– As a consequence of the strong growth in 2008 we very soon needed a complete additional floor in order to accommodate everything. So, quite simply, we told Wihl- borgs what facilities we wanted. A new kitchen, a social area, new conference room and Wihlborgs resolved everything, in consultation with us obviously. – No renovations are entirely free from problems. The issue is how the problems are resolved. Wihlborgs have been attentive and quick throughout the entire process, concluded Malin Andersson. No renovations are entirely free from problems. The issue is how the problems are resolved. Wihlborgs have been attentive and quick throughout the entire process, concluded Malin Andersson.

Wihlborgs annual report 2008 ”As of 31 december 2008, the property portfolio in Lund consisted of 13 properties with a total lettable area of 91,000 sq.m.” Anna Stenkil is responsible for the Lund Lund area.

This thousand-year-old seat of learning has has been started for Ideon Science Park and the intention is that a favourable industrial climate and has the area shall be consolidated within a ten year period. The lease positioned itself as an international centre costs for office in this area are SEK 1,500 - 2,200 per sq.m. for innovative research and industry. At the Gastelyckan is a rapidly-expanding commercial area in south- turn of the year, Wihlborgs owned 13 pro- east Lund. With its proximity to the E22 route, the area is of perties in Lund. These are located in strate- interest to both small and large companies. Wihlborgs owns offi- gically-selected areas such as Ideon Science ce and warehouse properties at Gastelyckan. The lease costs lie Park, Gastelyckan, in the centre and Väster. between SEK 750 and 1,100 per sq.m. The total rentable area is 91,000 sq.m. At Wihlborgs owns office and shop properties in central Lund. the end of the year the occupancy rate was All are located in an attractive central position close to Lund’s 95 per cent. central station. The lease costs for office properties lie between At Ideon Science Park, Wihlborgs owns SEK 1,200-1,500 per sq.m. half of the total area, i.e. 40,000 sq.m. of At Väster, Wihlborgs owns industrial, office, warehouse and offices. Today, the number of tenants is commercial properties. Wihlborgs also has a property that houses approximately 120. Most of these are res- Humanus college at what is referred to as the Sockerbruk area. earch and development companies. After Planning work is in progress and the area with its extensive com- Teleca moved to Malmö in 2007, the num- munication and proximity to central Lund is an important resource ber of Wihlborgs tenants at Ideon increased for Lund’s development with great potential. by around 20. Today, the vacancy degree is Regionhuset on Baravägen in Lund was acquired in 2008. down to much the same level as when Tele- The property has an area of approximately 17,000 sq.m. In the ca moved to Malmö. Ideon Science Park summer of 2010, Region Skåne will move from this location to with its surrounding areas (Pålsjö/Brunns- its new office block at Dockan in Malmö and, at the same time, hög) are very attractive for new and develo- Wihlborgs will take over the property in Lund. Work is in pro- ping companies and the area has grown a gress as to what will be housed in the property in the future. property portfolio lot in recent years. A consolidation project 31

Wihlborgs’ properties in Lund are located in city centre, Gastelyckan and Väster. The total lettable area amounts to 91,000 sq.m. 2008 Wihlborgs annual report Tina Bergström-Darrell, Facility Manager of Com Hem. “They are a property portfolio 32 really good landlord”

Undoubtedly well known, Com Hem is one of Sweden’s largest suppliers of TV, broadband and telephony. Approximately 40 per cent of all Swedish households are connected to Com Hem’s network. Com Hem has its technological development department in Malmö. – We have offices, large warehouse areas and a technical laboratory that keeps track of all technological development that concerns us. Our services must work together at all times with, for example, new TV sets that appear on the market, says Tina Bergström-Darrell. Space was getting tight for Com Hem a few years ago since the company was recruiting. Quite simply, more space was needed. Offices for Com Hem without quibbling – Wihlborgs made themselves available as expected and resolved everything without quibbling. What we needed most was new office space. We achieved this by moving the laboratory from the office area part of the property to the storage area. Thus the result was new offices and a new laboratory, says Tina Bergström-Darrell. – It is important to us that Wihlborgs is so accommodating and helpful since it is critical that our operations run faultlessly all the time – even during rebuilding. Despite everything, we deliver TV transmissions to hundreds of thousands of subscri- bers and not one of them likes interference. And Tina Bergström-Darrell has lots to compare with: – I am responsible for all of Com Hem’s facilities in Sweden. Wihlborgs is without doubt a very good landlord.

Wihlborgs annual report 2008 ”At the end of the year the property portfolio in Copenhagen consisted of 11 properties with a total lettable area of 106,000 sq.m.” Peter Nielsen is responsible for the Copenhagen area.

Copenhagen

As at 31 December 2008 Wihlborgs owned Wihlborgs also owns a logistics property with 14,000 sq.m. of eleven properties located in the west of Greater warehouse space located in Brøndby and one property of 1,200 Copenhagen. Total lettable area amounted sq.m. in Furesö Municipality. The lease costs for the areas amount to 106,000 sq.m. to DKK 350-700 per sq.m. Two of the properties of 20,000 sq m. The property Frederikskaj 4 in central Copenhagen was sold are located in Lautraupvang in Ballerup in the beginning of 2008. Municipality. Lautraupvang business zone

During 2008 Wihlborgs acquired four properties in Copen- o consists of larger office properties, the hagen with a total area of 20,000 sq.m. As of 31 December 2008 l i

tenants are primarily IT companies. Wihl- o

the total economic occupancy rate amounts to 90 per cent in f

borgs properties are good and located in a t

Copenhagen. r

desirable area. The rent level in the area is o about DKK 800–1,200 per sq.m. Other locations y p

In Herlev, which is close to Ballerup, The property portfolio in Other locations consists of seven t Wihlborgs owns seven properties with total undeveloped sites in Landskrona and in Svedala, five industrial lettable area of 70,000 sq.m. All the proper- p e r and warehouse properties in eastern and northern Skåne. The o “They are a ties are used primarily as offices. The lease value of properties in Other locations is SEK 32 million. costs for the area amount to DKK 600-900 per sq.m. p r really good landlord” 33

Properties in Copenhagen.

2008 Wihlborgs annual report investments

Projects in Malmö In 2008 one major project was completed at Dockan in Malmö, Dockan there is the shipyard dock which the construction of Dockporten 1. SEK 45 million was invested was previously used for building ships and in this project in 2008 and the total investment amounted to has now been converted into a modern har- SEK 123 million. Dockporten 1 comprises 4,600 sq.m. excluding bour for small boats. garage. This is where Mercedes-Benz has its Nordic head office With its mix of buildings, Dockan will and they moved here från Copenhagen at the end of September. become a district with hustle and bustle. 24 The estimated yield on the investment is 8.6 per cent. hours a day. University colleges, secondary During the year around 120 projects in Malmö have been schools and other educational buildings completed to a value of approximately SEK 127 million. will contribute to the dynamics. Many com- Major projects in progress in Malmö are a new building for panies have already made themselves at ÅF and Region Skåne at Dockan, totalling 19,700 sq.m., and a home in their new premises. Good commu- new building for Honda at Svågertorp covering 4,600 sq.m. nications, proximity to the water and a plea- projects and development 34 Furthermore, a new multi-storey car park is being built at Dock- sant workplace for employees are some of all an. These investments are expected to amount to SEK 651 milli- the criteria that Dockan meets. Today there on. are 270 enterprises with 6,500 employees and 9,000 university students and 3,000 who Dockan at Western Harbour lives in the Western Harbour. In the middle of the Öresund region in a historic part of Mal- Wihlborgs is building here for a dyna- mö, the old shipyard area is being converted into a modern mic business climate and tailors new premi- district with commercial premises and housing. In the middle of ses to meet tomorrow’s requirements for

Wihlborgs annual report 2008 the companies who are considering moving will develop the commercial premises whereas JM and Peab will here. The area exudes optimism and for- construct new housing. Through its part ownership of Dockan ward thinking. Dockan will become one of Exploatering AB, Wihlborgs expects in the coming years to add northern Europe’s most attractive areas for building rights corresponding to a gross area of 60 000 sq.m. housing and companies. Including the new projects, Wihlborgs Projects in Helsingborg has a property stock at Dockan of 122,000 A major project was completed in Helsingborg in 2008. Major sq.m. refurbishment of the Polisen 3 property took place in the old police station that was acquired in the summer of 2006. The Dockan Exploatering AB investment amounted to SEK 113 million. The project is estima- Wihlborgs, JM and Peab each own a third ted to produce a yield on investment of 7.8 per cent. of Dockan Exploatering AB which, in turn, During the year around 50 projects were completed to a projects and development owns the undeveloped land within the value of approximately SEK 58 million. At Berga a building of 35 Dockan. Dockan Exploatering AB was for- 5,000 sq.m. for an investment of SEK 54 million is in progress. med in 2000 to manage the development of the Dockan area. As and when detailed Projects in Copenhagen plans are completed, Dockan Exploatering Only a number of small investments have been completed in AB will release undeveloped land to the Copenhagen. owners which will mean that the company will not erect its own buildings. Wihlborgs

2008 Wihlborgs annual report valuation principles

Property valuation Valuation of Wihlborgs’ Swedish properties Market analysis Malmöbryggan Fastighetsekonomi AB and Savills Sweden AB In the case of the local authorities where have valued all of Wihlborgs’ properties in Sweden. The values of most of the building stock is located (Malmö, the properties are individually considered to correspond to the Helsingborg, Lund and Burlöv), the market market value of the respective property. The generally-applied parameters that form the basis of the indi- market definition in Sweden is “probable price for the sale on vidual value assessments are summarised the general property market”. This abbreviated definition is pre- for 78 different geographic areas. The info- sumed to be included in and lead to the same valuation result rmation is divided into four segments of as in the application of the International Valuation Standards the lease market – housing, offices, shops, Committee’s definition. “Market Value is the estimated amount warehousing/industry – and into three dif- for which a property should exchange on the date of valuation ferent parts of the property market – hou- between a willing buyer and a willing seller in an arm’s-length sing objects, commercial objects and indus- transaction after proper marketing where in the parties had try objects. each acted knowledgeably, prudently, and without compulsion”. The market parameters include assump- Bearing in mind that the valuations constitute the basis for the tions on: group’s economic accounting, the valuation methodology and ■ Vacancy level the accounting of the valuation is calculated in the international ■ Yield requirements accounting standard IAS 40 (Investment Property). ■ Growth in properties leased Valuation basis ■ Normalised operating and maintenance valuation principles 36 Valuations are based on the following types of documentation: costs ■ Special quality-assured information from Wihlborgs within the framework of data related to contracts and data related to Valuation methods properties. ■ Built properties intended for leasing are ■ Information accessed from public sources including data on valued using a market simulation model. the properties’ land area and site leasehold as well as detailed This means that the market value is assu- plans for undeveloped land and development properties. med to correspond to the yield value that can be estimated from a five-year ■ Market intelligence – current assessments of lease growth, cashflow analysis using market-related level of vacancies and yield requirements at the time of valua- parameters on assumptions for incoming tion for the constituent geographic and characteristic market and outgoing payments, estimating resi- segments of the building stock. dual value and cost of capital. Cashflow ■ Inspections. All built properties have been inspected during analyses with an estimation period long- 2005-2008. er than five years are applied in cases where it is considered justified with Quality assurance process regard to current long-term lease cont- The information related to properties comprises unique characte- racts. Future incoming lease payments ristics for each valuation project as well as information on all are used as a basis for cashflow analyses lease contracts. The components of the information accessed for each lease object subject to current from Wihlborgs’ different systems are the subject of a separate conditions in existing contracts during quality assurance process. the current contract period. The lease

Wihlborgs annual report 2008

payments that refer to future lease peri- Valuation of Wihlborgs’ international properties ods and for vacant premises are estima- Wihlborgs’ properties in Denmark have been valued by DTZ in ted according to individual assessments Denmark on the basis that agrees with the Swedish valuation. for each individual lease object. Apart- ments, garages and parking spaces are Summary of the market valuation considered to be aggregated per property. The following summary shows the value of Wihlborgs’ property stock at 31 December 2008. The number of properties on 31 ■ Value assessments regarding unbuilt December 2008 amounted to 247. properties including dereliction and redevelopment objects are made as direct estimates of the object’s newbuild value in a future market use bearing in mind dereliction and exploitation costs. The estimates are based on current planning criteria and recorded price levels for the sale of undeveloped land and Market value properties per 31 December 2008, SEKm building regulations. Malmö 7,268 Helsingborg 3,740 ■ The market value of properties with Rest of the Öresund region 2,612 newbuilding projects in progress are

Total 13,620 valuation principles normally assumed to correspond to the 37 value of the property without consideration given to projects with additions, Changes in properties’ book value corresponding to project costs already paid at the time of valuation. In the case Book value 1 January 2008 13,397 of properties that are relatively close to Acquisitions 509 completion, and where the lease contract Investments 622 for the most part of the newly-produced Properties sold -678 building is available, a premature value Value regulation -423 assessment of the object in its finished Foreign-currency translation 193 state is made. The value is then reduced Book value 31 December 2008 13,620 by the remaining budgeted project cost.

2008 Wihlborgs annual report List of Property Acquisitions and Sales January–December 2008

Operating income Municipality Area Category Area. sq m Price, SEK M Jan-Dec, SEK m1

Acquisitions quarter 1 Värjan 9 Helsingborg Helsingborg Ind./Wareh. 2,647 Lejrvej 1 Furesö Rest of Öresund Ind./Wareh. 1,228 Jan-Mar 2008 3,875 28 1,5 Acquisitions quarter 2 Hörkaer 14 och 26 Herlev Rest of Öresund Office/Retail 5,379 Marielundsvej 28-30 Herlev Rest of Öresund Office/Retail 10,474 Smedeholm 10 Herlev Rest of Öresund Office/Retail 3,206 Apr-Jun 2008 19,059 153 12,5 Acquisitions quarter 3 Väktaren 3 Malmö Malmö Office/Retail 8,000 Visiret 5 Helsingborg Helsingborg Ind./Wareh. 1,800 Jul-Sep 2008 9,800 261 3,5 Acquisitions quarter 4 Grusbacken 1 Helsingborg Helsingborg Projects/land Kniven 3 Helsingborg Helsingborg Ind./Wareh. 2,516 Stocken 2 Malmö Malmö Ind./Wareh. 7,342 uistitions and sales

q Urnes 3 Malmö Malmö Projects/land Part of Arlöv 22:191 Malmö Malmö Projects/land Oct-Dec 2008 9,858 67 0,3 Total property acquisition 2008 42,592 509 17,8

Sales quarter 1 S:t Georg Süd Hamburg Rest of Öresund Office/Retail 8,107 Måsen 16 Lund Rest of Öresund Projects/land - Luggudde 7 Malmö Malmö Office/Retail 2,087 Jan-Mar 2008 10,194 147 0,8 Sales quarter 2 Generalens Hage 53 Malmö Malmö Projects/land 2,768 Segeholm 12 Malmö Malmö Office/Retail 8,007 38 list of property ac Frederikskaj 4 Copenhagen Rest of Öresund Office/Retail 9,890 Apr-Jun 2008 20,665 411 4,5 Sales quarter 3 Runristaren 1 Helsingborg Helsingborg Ind./Wareh. 7,315 Kolonnen 20 Malmö Malmö Ind./Wareh. 1,635 Jul-Sep 2008 8,950 120 3,6 Total property sales 2008 39,809 678 8,9

1. Operating income from the properties acquired and sold are included in the net profit for the period.

Wihlborgs annual report 2008 property acquisitions and sales 39

Wihlborgs acquired Väktaren 3, Scandinavian Center, in Malmö. Possession took place in September 2008.

2008 Wihlborgs annual report ■ Malmö list of properties 40

Wihlborgs annual report 2008 List of properties MALMÖ Munici- Constr. Year of Industrial/ Resi- Tax asess. Nr Property designation Address pality T year value Office Retail Wareh. Hotel dential Other Total Value SEK M SUB-MARKET CENTRE & WESTERN HARBOUR Lettable area, sq.m. 1 Altona 5 Stora Nygatan 38 Malmö 1929 1980 430 263 693 8 2 Altona 22 Stora Nygatan 40 Malmö 1990 1990 701 70 771 7 3 Börshuset 1 Skeppsbron 2 Malmö T 1929 1987 4,340 934 36 5,310 88 4 Dockporten 1 Dockgatan 1 A-F Malmö 2008 4,120 450 4,570 31 5 Elefanten 40 Storgatan 20 Malmö 1988 1992 10,468 3,437 38 13,943 202 6 Erik Menved 37 Mäster Nilsg / Kattsundsg / Österg Malmö 1971 1971 17,693 3,452 2,902 203 24,250 209 6 Erik Menved 38 Mäster Nilsg 2, 8, 14, 24 Malmö 1971 1971 7 5,083 5,090 58 7 Fisken 18 N Vallgatan 100-102 / Västerg 35 Malmö 1988 1988 6,718 16 6,734 85 8 Flundran 1 Gibraltargatan 2 / Suezgatan 9 Malmö T 2,451 2,451 0 9 Forskaren 1 Medeon Per Albin Hanssons väg 41 Malmö 1989 1997 16,478 225 271 16,974 195 10 Generalens Hage 49 Hospitalsgatan 12 Malmö 1936 1992 562 472 1,034 7 12 Högvakten 6 Gråbrödersg 2 / N Vallgatan 80-82 Malmö 1962 1986 3,056 567 3,623 52 13 Kolga 4 Jörgen Kocksgatan 4 / Stormgatan 12 Malmö 1929 2001 2,266 19 2,285 36 14 Kranen 1 St Varvsg 1 / Isbergs gata 1-13 Malmö 1965 10,693 234 10,927 0 15 Kranen 2 Högskolan Ö Varvsgatan 11 A-F Malmö 1954 15,967 650 707 17,324 0 16 Kranen 4 Ö Varvsgatan 23 Malmö 1976 1981 4,014 25 170 4,208 38 17 Kranen 6 Båghallarna Ö Varvsgatan 13 A-C Malmö 1964 2,830 5,484 3,050 11,364 0 18 Kranen 8 Ubåtshallen Ö Varvsgatan 9 A-B Malmö 2001 14,930 375 10 15,315 0 19 Kranen 9 Isbergs gata 15 Malmö 2001 2001 3,710 3,710 63 20 Kranen 11 Dockplatsen 1 Malmö 2000 2000 10,864 410 11,274 170 21 Malmen 12 Barkgatan 9-11-13 Malmö 1971 1971 6,915 10 586 7,511 49 22 Neptun 6 Västergatan 43-47 Malmö 1978 1978 5,101 5,101 59 23 Oscar 4 Stortorget 25 Malmö 1935 1960 638 465 132 1,235 16 24 Ritaren 1 Stadiong 10 Malmö T 1967 1979 3,035 3,035 14 25 Skrovet 3 Dockplatsen 10-18 / Hallenborgs g. 9-19 Malmö 2007 2007 8,697 1,722 10,419 178 26 Skrovet 6 Stora Varvsgatan 3-7 / Isbergs gata 2 Malmö 2004 2004 12,461 459 12,920 229 27 Slagthuset 1 Carlsg 10-12 / Utställningsg 1B / J Kocksg 7 Malmö 1929 1992 8,841 8,225 30 2,777 336 20,209 158 28 Sparven 15 Storgatan 15 Malmö 1930 1960 14,361 6,265 20,626 105 29 Sqvalperup 12 Adelgatan 9-11 / N Vallgatan 60 Malmö 1929 1989 5,830 135 5,965 83 30 Uven 9 Diskontogången 2 / Lugna gatan 80-84 Malmö 1978 1984 6,091 1,010 7,101 67 31 Väktaren 3 Hjälmaregatan 3 Malmö 1992 1992 8,320 8,320 128 Total office and retail properties 212,580 22,073 16,830 2,947 6,023 3,839 264,292 2,334 32 Hälsingland 1 Åmålsgatan 7-9 Malmö 1974 282 931 1,213 0 Total industrial and warehouse properties 282 931 1,213 0 11 Gäddan 6 S Neptunig 10 / Citadellsv 11 Malmö T 1965 1965 1,266 1,256 2,522 15 34 Hamnen 22:188 Hans Michelsensgatan 8-10 Malmö 1951 1951 1,057 770 6,227 8,054 12 list of properties 35 Kranen 7 Ö Varvsgatan 15 Malmö 1957 1957 3,449 3,449 9 41 36 Kranen 10 Isbergs gata 17 Malmö 0 0 33 Nils 24 Drottningg 1 A-B Malmö 548 548 1 37 Sirius 3 Carlsg / Navigationsg / Mercurig Malmö 12 38 Skrovet 4 Hallenborgs gata 7 A-B Malmö 6 39 Skrovet 5 Hallenborgs gata / Stora Varvsgatan Malmö 19 40 Skrovet 7 Hallenborgs gata Malmö Total projects & land 2,323 770 11,480 0 0 0 14,573 75 TOTAL SUB-MARKET CENTRE & WESTERN HARBOUR 215,185 22,843 29,241 2,947 6,023 3,839 280,078 2,408

SUB-MARKET NORTHERN HARBOUR & ARLÖV 41 Arlöv 19:133 Hantverkaregatan 18 Burlöv 1962 1965 1,537 137 1,674 7 43 Spillepengsmarken 8 Strömgatan 11 Malmö 1978 1978 2,502 520 3,022 14 Total office and retail properties 4,039 0 657 0 0 0 4,696 21 46 Arlöv 17:4 Arlövsvägen 23 Burlöv T 1975 1975 212 3,609 3,821 13 47 Finngrundet 4 Blidögatan 24 Malmö 1963 1963 1,469 2,021 131 3,621 11 48 Flintan 3 Borrgatan 4 Malmö 1963 1963 246 3,031 3,277 8 49 Flygvärdinnan 5 Höjdrodergatan 28 Malmö 1987 1987 3,311 3,311 15 50 Grytan 3 Industrigatan 21 Malmö 1980 1980 1,298 1,100 2,398 9 51 Gulsippan 4 Källvattengatan 9 Malmö 1992 1992 735 2,662 3,397 13 52 Hanö 1 Hanögatan 2 Malmö 1968 1974 1,000 384 3,685 5,069 17

2008 Wihlborgs annual report Munici- Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address pality T year value Office Retail Wareh. Hotel dential Other Total value SEK M continues MALMÖ – SUB-MARKET NORTHERN HARBOUR & ARLÖV Lettable area, sq.m. 53 Höjdmätaren 1 Flygledaregatan 5 Malmö 1990 1990 840 1,057 1,897 7 54 Kirseberg 31:53 Stömgatan 3 (5a) Malmö 1994 1994 2,368 300 25,538 28,206 97 55 Skjutsstallslyckan 11 Lundavägen 60 / Rosendalsvägen 9 Malmö 1958 1962 714 3,073 3,787 8 58 Stocken 2 Västkustv 17 Malmö 1950 1990 7,342 7,342 27 59 Syret 13 Industrig 31-33 Malmö 1986 1986 1,585 1,585 7 60 Söderarm 11 Blidögatan 23-27 Malmö T 1966 1991 1,886 15,574 17,460 3 61 Tågarp 16:19 Hammarvägen 3 Burlöv 1972 1977 4,316 4, 316 10 62 Tågarp 16:25 Hammarvägen 17 Burlöv 1966 1976 2,192 2,192 5 63 Tågarp 16:26 Hammarvägen 19 Burlöv 1971 1977 198 2,418 2,616 7 64 Tågarp 16:42 Företagsvägen 30 Burlöv 1968 1970 418 8,794 9,212 26 65 Utgrunden 8 Sturkögatan 8-10 Malmö T 1962 1966 139 9,945 10,084 19 66 Vinkeln 8 Arlövsv 9 / Vinkelg 6 Malmö T 1969 1987 1 954 6,842 8,796 31 72 Åkarp 1:69 Tegelvägen 4 Malmö 1972 1974 5,277 5,277 24 Total industrial and warehouse 13,477 684 113,372 0 0 131 127,663 358 42 Arlöv 19:58 Hantverkareg 4 Malmö 1929 1975 540 1,275 558 2,372 7 Bjärred 9:1 Västanvägen Lomma 0 0 Borgeby 15:14 Norra Västkustv Lomma 0 1 Borgeby 15:37 Norra Västkustv 75 Lomma Borgeby 15:38 N:a Västkustv / Tegelbruksv Lomma Borgeby 15:51 Norra Västkustv Lomma Borgeby 17:128 Löddesnäsv Lomma Borgeby 17:16 Löddesnäsv Lomma Borgeby 17:22 Löddesnäsv / Västanv Lomma Borgeby 17:24 Löddesnäsv Lomma 67 Flygledaren 9 Höjdroderg 16 Malmö 1992 1992 5,573 5,573 20 68 Fältsippan 11 Källvattengatan 6 Malmö 0 5 69 Skevrodret 2 Kabingatan 7 Malmö 1979 1984 1,830 1,830 5 56 Spillepengshagen 1 Ågatan 8 Malmö 1967 1972 115 1,915 2,030 5 70 Spillepengshagen 3 Lundavägen 140 / Ågatan 2 Malmö T 1964 1964 5,678 5,678 16 54 Spillepengsmarken 6 Lundavägen 146 / Strömgatan 3 Malmö 0 2 57 Stenshuvud 3 Hanögatan 4-10 Malmö 1966 1976 3,327 590 13,441 17,358 58 71 Sunnanå 12:2 Staffanstorpsvägen Burlöv 0 7 44 Syret 12 Scheeleg 19-21 Malmö T 1970 1970 295 1,660 1,955 10 45 Åkarp 1:83 Alnarpsv 54 Burlöv 1929 1970 468 390 857 4 Total projects & land 6,574 590 29,931 0 0 558 37,653 142 TOTAL SUB-MARKET NORTHERN HARBOUR & ARLÖV 24,089 1,274 143,960 689 170,012 521

SUB-MARKET FOSIE & LIMHAMN 73 Boplatsen 3 Boplatsgatan 4-6-8 Malmö 1980 1997 24,972 1,855 26,827 103 74 Bronsdolken 25 Stenyxegatan 35 Malmö 1985 1990 480 6,872 2,993 10,345 32

list of properties75 Dubbelknappen 15 Kantyxegatan 23 Malmö 1992 1992 1,585 1,585 9 42 76 Hindbygården 8 Östra Hindbyvägen 74 Malmö 2004 2004 1,630 1,630 11 77 Revolversvarven 11 Jägershillgatan 20 Malmö T 1986 1986 1,170 480 1,650 7 78 Rosengård 130:403 Agnesfridsgatan 113 Malmö 1989 1989 7,959 415 8,374 49 79 Stenyxan 20 Stenyxegatan 16 Malmö 1970 1981 1,590 1,590 6 Total office and retail properties 38,216 8,457 5,328 0 0 0 52,001 216 80 Balken 7 Schaktugnsgatan 5 Malmö 1989 1989 618 1,202 1,820 7 81 Balken 10 Ringugnsgatan 3 Malmö 1997 1997 3,725 3,725 18 82 Blocket 1 Limhamnsgårdens Allé 3-37 Malmö 1987 1991 3,105 3,454 351 6,910 31 83 Bronsdolken 3 Stenyxegatan 15 Malmö 1986 1986 214 9,387 9,601 29 84 Bronsdolken 10 Stenyxegatan 27 Malmö 1982 1984 1,278 1,278 4 84 Bronsdolken 11 Stenyxegatan 29 Malmö 1982 1982 550 440 990 4 85 Bronsdolken 18 Stenyxegatan 17 Malmö 1984 1984 1,311 1,311 5 86 Bronsspannen 5 Trehögsgatan 7 Malmö 1972 1972 735 735 2 87 Bronsspannen 7 Flintyxegatan 1 / Trehögsgatan 11 Malmö 1977 1977 154 1,006 1,160 4 88 Bronsspannen 8 Flintyxegatan 3 Malmö 1975 1975 1,067 1,067 3 89 Bronsspannen 9 Flintyxegatan 5 Malmö 1975 1986 1,350 775 2,125 9 90 Bronsspannen 13 Trehögsgatan 3 Malmö 1980 1980 1,765 1,765 5 91 Dubbelknappen 23 Risyxegatan 3 Malmö 2005 2005 3,400 3,400 16 92 Förbygeln 1 Ridspögatan 1 / Skrittgatan 1 Malmö 1975 1981 5,146 5,146 16 93 Löplinan 7 Sporregatan 13 Malmö 1978 1980 2,489 2,489 7 94 Mandelblomman 5 Lönngatan 75 Malmö 1960 1960 640 1,995 2,635 6 95 Muren 5 Ringugnsgatan 8 Malmö 1990 1990 1,593 1,593 6 96 Ringspännet 3 Kantyxegatan 5 Malmö 1979 1979 207 3,420 3,627 10 97 Stångbettet 15 Ridbanegatan 6 / Travbanegatan 5 Malmö 1986 1986 179 3,778 3,957 15 98 Sufflören 3 Axel Danielssons väg 259 Malmö 1981 1981 828 1,487 2,315 10 99 Valvet 1 Krossverksgatan 5 A-M Malmö 1990 1990 2,687 725 3,412 11

Wihlborgs annual report 2008 ■ Helsingborg list of properties 43

2008 Wihlborgs annual report Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address Municipality T year value Office Retail Wareh. Hotel dential Other Total value SEK M continues Malmö - sub-maRKet fosie & Limhamn Lettable area sq.m. 100 Vipan 7 Odengatan 44 Malmö 1970 1970 480 522 1 002 3 101 Vårbuketten 2 Husievägen 19 Malmö 1970 1992 2,699 2,699 11 Total industrial and warehouse properties 11,012 0 53,399 0 0 351 64,762 234 102 Hindbygården 7 Östra Hindbyvägen 70-72 Malmö 0 4 102 Hindbygården 9 Östra Hindbyvägen Malmö 2 102 Hindbygården 10 Östra Hindbyvägen Malmö 1 103 Hundlokan 10 Cypressv 21-23 Malmö 1973 1988 6,000 6 ,00 19 104 Hällristningen 5 Boplatsgatan 5 Malmö 0 1 105 Trindyxan 3 Bronsyxeg 9 Malmö 1972 1975 1,040 6,235 7,275 22 106 Urnes 3 Grophusgatan Malmö 107 Vårbuketten 4 Husievägen 17 Malmö 0 3 Total projects & land 1,040 0 12,235 0 0 0 13,275 50 TOTAL SUB-MARKET FOSIE & LIMHAMN 50,268 8,457 70,962 351 130,038 501 TOTAL MALMÖ 289,543 32,574 244,162 2,947 6,023 4,879 580,127 3,430 helsingborg Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address Municipality T year value Office Retail Wareh. Hotel dential Other Total value SEK M sub-MARKet centre Lettable area sq.m. 1 Belgien Norra 19 Gasverksg 23, Nedre Eneborgsv 2 Helsingborg 1965 1965 3,825 1,365 200 2,826 819 9,035 82 2 John Ericsson 2 Järnvägsgatan 23 Helsingborg 1896 1963 655 137 74 866 9 3 Kalifornien 10 Järnvägsgatan 35-37 Helsingborg 1972 1972 6,002 77 6,079 61 4 Kullen Västra 19 Kullagatan 30 Helsingborg 1890 1986 854 359 10 372 1,595 15 5 Kärnan Norra 21 Stortorget 17 Helsingborg 1900 1960 2,268 303 100 2,671 30 6 Kärnan Södra 8 S. Storgatan 7 Helsingborg 1988 1988 1,733 1,733 22 7 Kärnan Södra 9 S. Storgatan 11-13 Helsingborg 1979 1979 1,052 1,002 8 1,057 3,146 6,265 65 8 Magnus Stenbock 7 Strömgränden 3 / N Storg 7 Helsingborg 1976 1976 403 200 603 6 9 Minerva 19 Södra Storgatan 31 Helsingborg 1,181 1,181 0 10 Mollberg 1 Stortorget 18 / S Storg 2 / N Kyrkog 19 Helsingborg 1885 1959 408 7,641 8,049 54 11 Najaden 14 Drottninggatan 7-11/Sundstorget 2-6 Helsingborg 1994 1982 11,171 1,870 314 52 13,407 145 12 Polisen 2 Nedre Holländaregatan 1 Helsingborg 1,170 1,170 0 13 Polisen 3 Carl Krooksgata 24 Helsingborg 1969 2005 15,102 15,102 69 14 Ruuth 35 Bruksgatan 25 / Prästg 10 Helsingborg 1931 1989 1,736 589 136 2,461 24 15 Stattena 10 Stattena Centrum Helsingborg 1975 1990 257 2,537 541 3,335 37 16 Svea 7 Järnvägsgatan 7-11 / S Strandg 4-6 Helsingborg 1895 1955 5,166 1,845 313 7,324 101 17 Terminalen 2 Kungstorget 6 Helsingborg T 1991 1991 55 13,158 13,213 121 18 Terminalen 4 Järnvägsgatan 18 Helsingborg T 1991 1991 3,481 25 3,506 40 19 Terminalen 5 Järnvägsgatan 22-24 Helsingborg T 1991 1992 5,733 5,733 79 list of properties 44 20 Vikingen 10 N Kyrkogatan 10-12 / Mariagatan 2 Helsingborg 1935 1935 381 857 603 1,841 20 Total office and retail properties 62,170 11,527 768 20,799 5,322 4,583 105,169 981 21 Iris 6 Dragareg2/Hävertg21/Ängelholmsv15 Helsingborg 1949 1970 620 743 1,341 1,234 3,938 4 Total industrial and warehouse properties 620 743 1,341 1, 234 3,938 4

TOTAL SUB-MARKET CENTRE 62,790 12,270 2,109 20,799 5,322 5,817 109,107 985

SUB-MARKET SOUTH Arholma 4 Frösögatan 7 Helsingborg 1979 1979 1,895 1,895 9 22 Brottaren 17 Hästhagsvägen 3 Helsingborg 1957 1957 6,729 6,729 36 23 Gymnasten 4 Planteringsvägen 11 Helsingborg 1961 1977 3,335 2,490 60 5,885 29 24 Hästhagen 7 La Cours gata 2-6 / Landskronav 1-3 Helsingborg 1990 1990 9,032 1,605 263 320 11,201 57 25 Manövern 3 Hästhagsvägen 1 Helsingborg 1939 1948 240 4,739 4,979 20 26 Posten 1 Västra Sandgatan 7 Helsingborg 1973 3,074 2,949 6,023 0 Total office and retail properties 12,327 18,303 5,702 0 0 380 36,712 152 27 Brottaren 15 Kapplöpningsgatan 14, 16 Helsingborg 1989 1998 2,696 227 1,343 4,266 14 28 Flintyxan 1 Stenbrovägen 40-42 Helsingborg 1979 1979 3,120 3,120 8 29 Flintyxan 3 Stenbrovägen 36-38 Helsingborg 1979 1979 3,127 3,127 8 30 Flintyxan 5 Stenbrovägen 32-34 Helsingborg 1989 1989 4,333 4,333 14 31 Gymnasten 9 Kapplöpningsgatan 6 Helsingborg 1962 1973 2,490 16,510 19,000 35 32 Olympiaden 7 Kapplöpningsg 5 Helsingborg 1970 1970 1,094 1,542 2,636 7 33 Olympiaden 8 Kapplöpningsg 3 Helsingborg 1965 1965 635 5,965 6,600 14 34 Orkanen 5 Landskronav 18 Helsingborg 1969 1969 551 2,384 2,935 6

Wihlborgs annual report 2008 Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address Municipality T year value Office Retail Wareh. Hotel dential Other Total value SEK M Lettable area sq.m. continues SUB-MARKet South Lettable area, sq.m. 35 Persien 1 V Sandg 10-12 / Cindersg 11 Helsingborg 1929 1929 300 3,085 515 3,900 4 36 Persien 14 Cindersg 13-15 Helsingborg 1977 1977 1,916 1,930 3,846 3 36 Persien 15 Cindersg 17-19 Helsingborg 1977 4,026 4,026 37 Planteringen 1:8 V Tallg 32 Helsingborg 1971 1971 540 1,325 1,865 5 37 Planteringen 1:9 V Tallg 32 Helsingborg 1966 1966 1,344 4,852 6,196 13 38 Plåtförädlingen 7 Strandbadsv 11 Helsingborg 1975 1975 1,210 1,210 3 39 Plåtförädlingen 8 Strandbadsv 13 Helsingborg 1990 1986 1,896 11,899 33 40 Plåtförädlingen 11 Strandbadsv 19-21 Helsingborg 1978 1978 9,356 13,178 22,534 56 41 Plåtförädlingen 13 Strandbadsv 15-17 Helsingborg 1992 2001 1,764 15,192 16,956 50 42 Plåtförädlingen 15 Strandbadsv 7 Helsingborg 1997 1997 2,496 2,496 12 43 Plåtförädlingen 18 Strandbadsvägen 9 Helsingborg 1964 1965 170 835 1,005 4 44 Rausgård 21 Landskronavägen 9 Helsingborg 1940 1945 1,915 8,701 190 10,806 20 45 Sadelplatsen 10 Fäktmästaregatan 5 Helsingborg 1956 1956 620 2,640 3,260 6 46 Sadelplatsen 13 Planteringsv / Fäktmästareg Helsingborg 1965 1991 1,280 706 520 18,955 40 47 Stormen 13 Landskronavägen 2-12 Helsingborg 1964 1970 6,004 6,004 12 48 Valsen 1 Svanhalsgatan 17 Helsingborg 1940 1965 550 3,993 315 4,858 12 49 Ättehögen Mellersta 6 Torbornavägen 22 Helsingborg 1970 1983 559 2,080 2,639 9 Total industrial and warehouse properties 33,702 933 0 0 1,540 168,472 387

TOTAL SUB-MARKET SOUTH 46,029 19,236 1,920 205,184 539

SUB-MARKET BERGA 50 Floretten 3 Garnisonsgatan 25 A-C Helsingborg 1991 1991 4,954 315 609 5,878 39 51 Grustaget 1 Grustagsgatan 35-37 Helsingborg 1988 1988 4,008 4,008 18 52 Huggjärnet 12 Garnisonsg 7A / Kastellg 8 Helsingborg 1990 1970 4,242 420 836 5,498 28 53 Lansen 3 Florettgatan 29 A Helsingborg T 1971 1979 1,340 1,340 5 54 Musköten 13 Muskötgatan 8 B Helsingborg 2001 2001 2,272 2,272 9 Nackstycket 8 Tygelvägen 5 Helsingborg 1991 0 0 Nackstycket 9 Tygelvägen 5 Helsingborg 1991 316 316 0 55 Värjan 12 Muskötgatan 12 Helsingborg 1989 1991 1,145 1,145 6 56 Värjan 13 Muskötgatan 10 Helsingborg 1968 1968 2,810 2,085 4,895 11 Total office and retail properties 19,747 735 4,870 0 0 0 25,352 116 57 Armborstet 4 Lilla Garnisonsgatan 31 Helsingborg 1988 1988 1,380 900 455 2,735 10 58 Grusgropen 3 Grustagsgatan 22 Helsingborg 1991 1991 634 4,241 4,875 16 59 Grushögen 2 Makadamgatan 1 Helsingborg 1997 1984 3,057 3,057 10

60 Grusplanen 2 Blockgatan 8 Helsingborg 1989 1989 2,375 2,375 6 list of properties 61 Grustaget 2 Grustagsgatan 15 Helsingborg 1980 1991 3,981 3,981 14 45 62 Hakebössan 1 Karbingatan 28-32 Helsingborg 1981 1981 1,105 3,777 4,882 17 63 Hakebössan 2 Karbingatan 10-20 Helsingborg 1986 1978 1,291 366 7,744 9,401 33 64 Hakebössan 3 Karbingatan 22, 26 Helsingborg 1987 1984 1,123 4,202 5,325 20 65 Hillebarden 1 Garnisonsgatan 16 Helsingborg 1969 1969 98 4,294 4,392 13 66 Huggjärnet 13 Kastellgatan 2 Helsingborg 1967 1967 454 163 3,842 4,459 12 67 Kniven 2 Mörsaregatan 17 Helsingborg 1976 1976 150 4,935 5,085 12 68 Kniven 3 Mörsaregatan 19 Helsingborg 1975 1984 2,516 2,516 15 69 Kroksabeln 11 Muskötg 17-27 / Garnisonsg 17 Helsingborg 1968 1969 729 864 6,327 7,920 11 70 Kroksabeln 19 Florettgatan 14 Helsingborg 1966 1973 943 192 7,083 8,218 19 71 Lansen 1 Florettgatan 15-29 Helsingborg 1985 1985 9,961 23,886 56 72 Lansen 2 Florettgatan 31-39 Helsingborg 1971 1971 1,818 3,907 30 5,755 18 73 Musköten 11 Muskötgatan 6 Helsingborg 1979 1979 2,920 2,920 8 74 Musköten 12 Muskötgatan 8 A Helsingborg 1992 1992 1,881 1,881 6 75 Mörsaren Västra 5 Muskötgatan 5 Helsingborg 1970 1970 1,701 1,701 5 76 Mörsaren Västra 13 Florettgatan 4 Helsingborg 1973 1973 868 3,131 3,999 12 77 Snårskogen 4 Ekvändan 5 Helsingborg 2007 2007 656 656 4 78 Spjutet 1 Garnisonsgatan 12 Helsingborg 1980 1980 1,496 1,512 3,008 10 79 Visiret 5 Garnisionsgatan 47 A Helsingborg 1997 1997 1,800 1,800 5 80 Värjan 9 Garnisionsgatan 13 Helsingborg 1976 1992 355 511 1,781 2,647 7 Total industrial and warehouse properties 24,985 4,492 0 0 30 117,474 341 81 Barrikaden 3 Fyrverkaregatan Helsingborg 0 0 82 Grusbacken 1 Mogatan 12 Helsingborg 3

2008 Wihlborgs annual report ■ Lund

IDEON

GASTELYCKAN

■ Copenhagen BALLERUP KRAKS KART (R/090127/1)

HERLEV list properties 46

Wihlborgs annual report 2008 Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address Municipality T year value Office Retail Wareh. Hotel dential Other Total value SEK M continues sub-MARKet berga Lettable area, sq.m. 83 Kroksabeln 20 Florettgatan 16 Helsingborg 1968 1969 0 2 84 Musköten 9 Muskötgatan 4 Helsingborg 1967 1967 2,916 864 3,780 3 Total projects and land 0 2,916 864 0 0 0 3,780 10

TOTAL SUB-MARKET BERGA 44,732 8,143 0 0 30 146,606 468

LUND, copenhagen and rest of the öresund area Constr. Year of Industrial/ Resi- Tax asess. No Property designation Address Municipality T year value Office Retail Wareh. Hotel dential Other Total value SEK M SUB-MARKET LUND Lettable area, sq.m. Mkr 1 Armaturen 4 Trollebergsv 1 / Gasverksg 1-9 Lund 1929 1969 5,420 1,838 208 7,466 68 2 Diabasen 3 Skiffervägen 30-86 Lund 1988 1995 1,747 108 6,392 8,247 34 3 Gråbröder 34 Klostergatan 14 / Bytaregränd 4 Lund 1929 1986 1,118 1,587 53 2,758 50 4 Måsen 17 Fjelievägen 41 Lund 2001 2001 4,169 64 4,233 52 5 Studentkåren 5 Scheelevägen 15 B-D Lund 1999 8,150 8,150 5 Studentkåren 6 Scheelevägen 15 A Lund 2000 2000 6,587 6,587 33 6 Töebacken 7 Bondev 2 / Åldermansg 13 / Fjeliev 68 Lund 1979 1979 2,845 1,482 448 4,775 46 7 Virket 2 Öresundsvägen 14 Lund 1962 1974 321 580 879 1,780 6 8 Vätet 1 Scheelevägen 17 Lund 1986 2000 22,712 836 635 45 24,228 151 Total office and retail properties 53,069 4,593 10,309 0 0 253 68,223 441 9 Diabasen 1 Skiffervägen 26 Lund 1985 1985 750 2,660 3,410 14 10 Flintan 3 Skiffervägen 24 Lund 1985 1988 5,979 5,979 24 11 Länsmannen 1 Åldermansgatan 2 Lund 1945 1984 9,080 9,080 30 12 Skiffern 2 Skiffervägen 14 Lund 1982 1982 2,910 2,910 9 GASTELYCKAN Total industrial and warehouse properties 750 0 20,629 0 0 0 21,379 77 13 Postterminalen 1 Fabriksgatan 1 Lund 1984 1,348 386 1,734 0 Total projects & land 1,348 0 386 0 0 0 1,734 0 TOTAL SUB-MARKET LUND 55,167 4,593 31,324 253 91,336 518

SUB-MARKET COPENHAGEN 1 Borupvang 5 Borupvang 5 Ballerup 1974 10,888 10,888 0 2 Ellekær 6 Ellekær 6 Herlev 1945 3,911 1,942 5,853 0 3 Ellekær 9 Ellekær 9 Herlev 1990 6,029 1,120 7,149 0 4 Hørkær 14, 26 Hørkær 14, 26 Herlev 1957 5,379 5,379 0 5 Hørkær 16-28 Hørkær 16-28 Herlev 1984 26,462 7,758 34,220 0 6 Lautrupvang 12 Lautrupvang 12 Ballerup 1998 7,936 1,413 9,349 0 7 Marielundvej 28-30 Marielundvej 28-30 Herlev 1966 9,633 841 10,474 list of properties 8 Smedeholm 10 Smedeholm 10 Herlev 1992 3,204 3,206 47 Total office and retail properties 73,444 0 13,074 0 0 0 86,518 0 9 Abildager 8-14 Abildager 8-14 Bröndby 1964 14,512 14,512 0 10 Lejrvej 1 Lejrvej 1 Furesö 1985 1,228 1,228 11 Vasekær 9 Vasekær 9 Herlev 2001 3,687 3,687 Total industrial and warehouse properties 0 0 19,427 0 0 0 19,427 0 TOTAL SUB-MARKET COPENHAGEN 73,444 0 32,501 0 0 0 105,945 0

SUB-MARKET OTHER AREA Bulten 1 Gamla Slätthusv 3 / Skånev 32 Älmhult 1970 1970 82 2,229 2,311 4 Korreboda 5:1 Lunkendev 6 Simrishamn 1929 1994 8,870 8,870 8 Macken 12-14 Hovdalav 1-3 Hässleholm 1955 1971 210 5,432 5,642 9 Mjölet 9 Industrig 30 Kristianstad 1961 1973 1,142 1,142 2 Ögonmåttet Lokgatan 14 Tingsryd 1991 1991 1,140 1,140 2 Total industrial and warehouse properties 292 0 18,813 0 0 0 19,105 25 Bilrutan 5 Kamgatan Landskrona 0 3 Pedalen 16 Rattgatan 48 Landskrona 0 0 Pedalen 20 Rattgatan 48 Landskrona 0 0 Strålkastaren 3 Rattgatan 41 Landskrona 0 0 Strålkastaren 4 Rattgatan 43 Landskrona 0 0 Svedala 122:85 Företagsgatan Svedala 0 1 Örja 19:12 Rattgatan 55 Landskrona 0 0 Total projects & land 0 0 0 0 0 0 0 5 TOTAL WIHLBORGS 571,996 76,815 560,609 23,746 11,345 12,899 1 257,410 5,969

2008 Wihlborgs annual report risk and tax situation

Wihlborgs’ activities, financial position and profit are affected leasing volume. The vacancy level on an by a number of risk factors. The risks that represent a decisive annual basis as at 31 December 2008 am- impact on the company’s profit growth are variations in lease ounted to SEK 97 million. income, changes in rates of interest, growth in costs, property values and taxes. Operating and maintenance costs, property tax Lease income and growth in lease acitivities Major cost items within operations are Supply and demand determine the growth in lease activities for made up of assessment-related costs such as commercial premises. The demand for Wihlborgs’ commercial those for heating, electricity, water and was- properties is influenced by general changes in the business cli- te collection. In many cases, Wihlborgs is mate and the respective location’s growth with regard to popula- dependent on a local supplier, often owned tion and employment. The range of premises available on a mar- by a local authority, for water, district hea- ket comprises an existing area as well as any possible additional, ting and waste collection. newly-produced areas. Lease properties are also subject to a Wihlborgs operates in a growth region and this limits risks national property tax that amounts to 1.0

factors and tax situationover time. The ten largest tenants as identified on page 19 stand per cent of the rateable value of premises k for a lease volume of SEK 231 million. This corresponds to 19 lease properties and 0.5 per cent for indu- i s

R per cent of the total lease income. strial properties. The tax is calculated on The lease level for leased premises with agreement periods the basis of the property’s rateable value. longer than three years is normally linked to the consumer price The property tax is usually passed on to the 48 index. Wihlborgs has an average lease contract duration of 3.3 tenants. years. Approximately 80 per cent of Wihlborgs’ property portfolio is subject to price adjustment at the end of each year on the Realised and unrealised value changes basis of the consumer price index. The potential for realising future profits on disposal of properties depends on Wihl- Leasing level borgs’ own capacity to enhance the proper- The leasing volume of Wihlborgs’ portfolio is primarily the ties’ market value through changing and result of the company’s own endeavours. Business cycle factors upgrading properties, agreement structu- and structural changes also have an impact on Wihlborgs’ res, customer structures etc and external

Profit/loss, SEK M + - 1 % Rentals + -12 Vacancies + -13 Property expenses + - 3 Interest expenses + -44

Wihlborgs annual report 2008 factors that affect demand and supply in WIHLBORGS tax SITUATION Wihlborgs’ property markets. In the balance sheet dated 31 December 2008, the audited value Normally an increase in the interest of properties is stated as SEK 13,620m. The audited value exceeds rate results in lower demand and thus fal- the value of properties in the group for tax purposes with SEK ling property prices. Conversely a fall in 4,053m. This means that there was a deferred tax liability on interest rates can result in rising property properties as at 31 December 2008 of SEK 1,066m. This cor- prices. responds to 26.3 per cent of the difference between the audited Other factors that are significant to the value and the value for tax purposes of the properties. According growth of property prices are the property to the balance sheet there was also a deferred tax liability of SEK market’s assessment of future risks and 8m related to untaxed reserves. opportunities including expectations of Depreciation for tax purposes regarding the property stock future lease growth, value increase, borro- are made as follows: wing potential etc. An elevated rate of interest, which can have a negative effect on Building: 2-5 per cent on the acquisition value property prices, can result in expectations Land plant: 5 per cent on the acquisition value of a growth in leases as a consequence of Land/building equipment and affilition costs: 25 per cent factors and tax situation improved growth potential and rising on the residual value. k i s

inflation. Expectations of an increase in R lease growth can therefore wholly or partly In addition to depreciation for tax purposes, the company has neutralise the effects of a rising interest used the option to make direct deductions for certain recon- 49 rate. struction investments.

Financing Deficit deduction for tax purposes For information on policy issues and risk The total deficit deductions amount to SEK 517 million (411). management concerning financial ques- This is taken into account when calculating deferred tax. Of the tions see the section entitled “Financial deficit deductions, SEK 326 million is blocked until 2012. Other- instruments and financial risk manage- wise, offset has been applied to deferred prepaid taxes and ment” on page 63. liabilities. No deficit deduction has been utilised in the tax cal- culation for 2008.

2008 Wihlborgs annual report administration report

The Board of Directors and Chief Executive Officer of Wihl- with an average interest rate of 5.02 per borgs Fastigheter AB (publ), company registration number cent including the effects of used derivative 556367–0230, hereby present their annual report for the Group instruments. and parent company in 2008. Since the variable interest rates were increased considerably at the end of Sep- The business tember/beginning of October, Wihlborgs Wihlborgs is a property company focusing on the Öresund regi- secured SEK 4.8 billion of the loans. Securi- on. The company’s property portfolio comprises commercial ty was provided by three Stina swaps. This properties in Malmö, Helsingborg, Lund and Copenhagen. The means that Wihlborgs pay a fixed rate of total rental value was SEK 1,314m and the annual contractual interest until 8 April 2009 of 4.69 per cent. rental income was SEK 1,217m. The financial occupancy rate Excluding the effects of the Stina swaps, was 93 per cent. Our properties in Malmö and Helsingborg Wihlborgs’ average interest rate at the end accounted for 83 per cent of the total rental value and 81 per of the year was 3.32 per cent. At year-end, cent of the book value of the properties. Wihlborgs’ office and the average fixed-rate term for the loans,

inistration report retail properties accounted for 69 per cent of the total rental including the effects of utilised derivate

m value, and industrial and warehouse properties for 27 per cent. instruments, was 44 months (16). The average maturity of loans, inclu- Results ding committed lines of credit, was 2.8 years (3.5).

a d The result after tax was SEK -49m (1,114m). The result per share 50 was SEK -1,32 (29.08). The rental income was SEK 1,168m (1,035m) and net operating income increased to SEK 832m Sales and acquisitions of properties (723m). Operating income amounted to SEK 378m (1,736m), In 2008, Wihlborgs acquired 12 properties including changes in the value of properties of SEK -423m for a total consideration of SEK 509m. The (1,043m). Net financial items was negative, SEK -565m (-234m), amount is divided according to property including changes in value of derivatives SEK -214m (15m). purchases in Malmö of SEK 297m, Copen- hagen SEK 165m and Helsingborg SEK 47m. Cashflow and financial position The acquisition of the property Landsdoma- Shareholders equity was SEK 4,134m (4,473) and equity/assets ren 6, Regionhuset in Lund, has been noti- ratio 29.4 per cent (32.6). Return on equity was -1.2 per cent fied to the press but occupation will not take (27.9). place until the middle of 2010. Eight proper- Cashflow from current activities produced a surplus of SEK ties have been disposed of a price of SEK 1,544m (838). Investment activities generated a negative cashflow of SEK 517m (1,195). Long-term liabilities decreased by SEK 693m (2007 increased by 739) and the dividend paid to shareholders amounted to SEK 234m (211). Overall this has resulted in liquid assets decreasing by SEK 7m, together with the opening balance of liquid assets of SEK 147m, resulted in liquid assets at the end of the year amounting to SEK 140m. The group’s liquid assets including unused bank overdraft facilities at 31 December amounted to SEK 232m (226m). The interest-bearing liabilities at the end of the year amounted to SEK 8,271 million (7,796)

Wihlborgs annual report 2008 678m. The selling price exceeded the total Parent company capital invested by SEK 163m. The profit after tax in the parent company amounted to SEK 240m (524m). The parent company provides mostly intra-group Changes in value services. Turnover amounted to SEK 77m (79m). The parent Malmöbryggan Fastighetsekonomi AB and company has invested SEK 162m (1,390m) in subsidiaries. Savills Sweden AB have valued all of Wihl- borgs’ properties in Sweden. The value of Corporate Governance Report each property is assessed individually to A separate Corporate Governance Report is presented on pages correspond to its market value. Our Danish 72-79. properties have been valued by DTZ. Chan- ges in value amounts in all to SEK -423m Profit-sharing fund (1,043m). The employees shareholdings in Wihlborgs profit-sharing fund amounts to 68,850 shares at the year-end. Investments in existing properties

and current projects Share capital, number of shares and repurchase inistration report

In 2008, Wihlborgs invested SEK 622m. Out Wihlborgs’ share capital amounts to SEK 192 million divided by m of this amount, SEK 302m was invested in 38,428,364 shares with a quote value per share of SEK 5. All sha- Malmö. Major projects are newbuilding to res have the same voting right of one vote per share. Wihlborgs ÅF and Region Skåne in the Dockan area in

repurchased 997,350 shares in 2007 and acquired 1,217,000 sha- a d Malmö and the newbuilding to Honda in Svå- res in 2008. In total, 2,214,350 shares were repurchased for SEK 51 gertorp. The project for Mercedes has been 217 million or SEK 98 each. The board has proposed to the AGM completed during the year. that the board be given continued authority to repurchase a max- SEK 228m has been invested in Helsing- imum of 10 per cent of the registered shares in the company. This borg. A major project that can be noted is would mean the acquisition of a further maximum of 1,628,486 the rebuilding/newbuilding of Polisen 3. shares. The number of outstanding shares amounts to In the rest of the Öresund region Wihl- 36,214,014. borgs invested SEK 92m. Confirmed investments in current projects total SEK 702m, of Events after the end of the accounting year which SEK 305m was invested as at 31 During the first quarter of 2009, Wihlborgs increased its loan December 2008. framework by SEK 500 million.

2008 Wihlborgs annual report Environment Wihlborgs has registered 38,428,364 shares The extent of Wihlborgs’ activities that are subject to the permit of which 2,214,350 are repurchased own sha- and notification requirements contained in Section 6 of Chapter res that are not the subject of distribution. If 9 of the Environmental Code are very limited and normal for the number of repurchased own shares chan- the industry. Read more about Wihlborgs’ environment work on ges before the record day, the dividend amount pages 8-10. of SEK 235,391,091 will be adjusted.

Prospects for 2009 Statement of the Board of Directors After a number of years of good growth, this is now on the decline on the proposed dividend Grounds and thus the demand for offices and other commercial premises The Group’s equity has been calculated in throughout the Nordic area is lower. This also applies to the accordance with the EU–approved IFRS Öresund region even though demand is not expected to fall as standards, the interpretation of these much here. Seen historically, the market in Skåne has been (IFRIC) and Swedish law through the app- affected less by the state of the business cycle. Uncertainty about lication of the Council for reporting’s the growth of the real economy during 2009 must however be recommendation RFR 1.1 (Supplementary considered. accounting regulations for groups). Parent Despite a decline in the business cycle, no change is expected company equity has been calculated in in market lease costs and vacancy levels. Wihlborgs anticipate an accordance with Swedish law and the appli- improved operational surplus and lower interest rates. As a con- cation of the Council for reporting’s rec- sequence of the market situation it is expected that business ommendation RFR 2.1 (Accounting for transactions will decrease. legal persons.) The proposed dividend is based on 50 Proposed allocation of profits per cent of Wihlborgs’ income from pro- The AGM is asked to decide on the allocation of the following perty management and 50 per cent of reali- amounts in the parent company: sed gains from property sales less estimated tax at 26.3 per cent, which is exactly in Unrestricted reserves 1,390,823,632 line with Wihlborgs’ dividend policy. Profit for the year 240,190,466 The Directors do not believe the propo-

inistration report Total 1,631,014,098 sed dividend will affect the company’s futu-

m re business opportunities. The dividend The Board of Directors and Chief Executive Officer propose that does not conflict with the company’s finan- the amount be allocated as follows: cial objectives. Wihlborgs’ estimated equity/assets ratio after the proposed dividend a d 52 Dividend to the shareholders is 27.8 per cent. The company’s liquidity, SEK 6,50 per share 235,391,091 including credit, is more than adequate to Carried forward 1,395,623,007 support the proposed dividend. Total 1,631,014,098

Wihlborgs annual report 2008 Income statements

Group Parent company Amounts in SEK million Note 2008 2007 2008 2007 1-3 Rental income 4 1,168 1,035 - - Property expenses 5, 6 -336 -312 - - Net operating income 832 723 0 0

Central administration and marketing 6, 7 -31 -30 -18 -16 Change in value of properties 8 -423 1,043 - - Other operating income 9 - - 77 79 Other operating expenses 9 - - -77 -79 Operating profit 378 1,736 -18 -16

Profit/loss from interests in group companies 10 - - 454 534 Profit/loss from interests in joint ventures 11 -2 - - -

Profit/loss from other securities and assets 12 6 3 389 313 Other interest income 10 4 7 2 Interest expenses and similar items 13 -365 -256 -458 -326 Change in value derivatives 14 -214 15 -210 15 Result after financial items -187 1,502 164 522

Tax on the profit for the year 15 138 -388 76 2 Profit/loss after tax -49 1,114 240 524

Attributable to parent company’s shareholders -49 1,114 profit and loss account Attributable to minority shares - -

Data per share (there is no dilution effect, as there are no potential shares) 53 Earnings per share, SEK -1,32 29,08 Dividend per share (2008, proposed dividend) 6,50 6,25 No. of shares at the end of period, million 36,2 37,4 Average no. of shares, million 37,2 38,3

2008 Wihlborgs annual report Balance sheet

Group Parent company Amounts in SEK million Note 2008 2007 2008 2007 Assets

Fixed assets

Tangible fixed assets Investment properties 16 13,620 13,397 - - Inventories 17 8 9 4 5 Total tangible fixed assets 13,628 13,406 4 5

Financial fixed assets Participations in group companies 18 - - 3,076 2,998 Receivables from group companies - - 8 216 7 360 Participations in joint ventures 19 66 52 52 52 Receivables from joint ventures 59 - 59 - Other long-term securities holdings 20 14 10 14 10 Derivatives - 11 - 11 Deferred prepaid tax 26 - - 71 1 Other long-term receivables 21 34 33 - - Total financial fixed assets 173 106 11,488 10,432

Total fixed assets 13,801 13,512 11,492 10,437

Current assets

Current receivables balance sheet Customer receivables 22 15 22 1 - Other receivables 67 24 - 4 54 Prepaid expenses and accrued income 23 17 17 136 277 Total current receivables 99 63 137 281 Cash and bank balance 24 140 147 137 124 Total current assets 239 210 274 405

TOTAL ASSETS 14, 040 13,722 11,766 10,842

Wihlborgs annual report 2008 Group Parent company Amounts in SEK million Note 2008 2007 2008 2007 Equity and liabilities

Shareholders’ equity 25 Share capital 192 192 192 192 Other capital contributed 2,178 2,178 - - Reserves 69 18 - - Total restricted equity in parent company 192 192 Profit brought forward 1,575 1,965 1,391 1,192 Profit/loss for the year in parent company 240 524 Total unrestricted equity in parent company 1,631 1,716 Minority participation 120 120 Total equity 4,134 4,473 1,823 1,908

Long-term liabilities Deferred tax liability 26 939 1,093 - - Other allocations 27 41 33 - - Liabilities to credit institutions 28 6,899 7,436 5,476 6,468 Loans with group companies - - 2,832 2,436 Derivatives 29 99 - 99 - Total long-term liabilities 7,978 8,562 8,407 8,904 s h e e t

Current liabilities c e Liabilities to credit institutions 28 1,372 360 1,367 - Derivatives 29 100 - 100 - Accounts payable 94 80 2 3 b a l a n Tax liabilities 10 11 - - Other liabilities 36 12 4 4 55 Accrued expenses and prepaid income 30 316 224 63 23 Total current liabilities 1,928 687 1,536 30

TOTAL EQUITY AND LIABILITIES 14,040 13,722 11,766 10,842

Commitments and contingent liabilities 31

2008 Wihlborgs annual report Changes in equity

Share- Other contri- Accumilated Minority Total Amounts in SEK million Note capital buted capital Reserves profit or loss Totalt equity share equity Group 25 attributable to parent company’s sharejolders Equity 1 January 2007 192 2,178 5 1,172 3,547 120 3,667 Exchange rate differences - - 13 - 13 - 13 Income and expenses for the period - - 13 - 13 - 13 that are recognised in equity Profit for the year - - - 1,114 1,114 - 1,114 Total income and expenses for the - - 13 1,114 1,127 - 1,127 period Dividend paid - - - -211 -211 - -211 Repurchase of own shares - - - -110 -110 - -110 Equity 31 December 2007 192 2,178 18 1,965 4,353 120 4,473

Exchange rate differences - - 51 - 51 - 51 Income and expenses for the period - - 51 - 51 - 51 that are recognised in equity Result of the year - - - -49 -49 - -49 Total income and expenses for the - - 51 -49 2 - 2 period Dividend paid - - - -234 -234 - -234 Repurchase of own shares - - - -107 -107 - -107 Equity 31 December 2008 192 2,178 69 1,575 4,014 120 4,134

Share Restricted Unrestricted Total Amounts in SEK million Note capital reserves equity equity Parent company 25 Equity 1 January 2007 192 0 1,509 1,701 Dividend paid - - -211 -211 Repurchase of own shares - - -110 -110 Group contribution - - 5 5 Tax on Group contribution - - -1 -1 changes in equity 56 Profit/loss for the year - - 524 524 Equity 31 December 2007 192 0 1,716 1,908

Dividend paid - - -234 -234 Repurchase of own shares - - -107 -107 Group contribution - - 22 22 Tax on Group contribution - - -6 -6 Profit/loss for the year - - 240 240 Equity 31 December 2008 192 0 1 631 1 823

Wihlborgs annual report 2008 Cash flow statement

Group Parent company Amounts in SEK million Note 2008 2007 2008 2007 Operations Net operating income 378 1,736 -18 -16 Adjustments made for records excluded in the cash flow 32 426 -1,041 1 1 Interest received and dividend 12 1 929 1,764 Interest paid -329 -247 -420 -318 Income tax paid -10 -15 - - Cash flow before change in operating capital 477 434 492 1,431

Change in operating capital Current receivables -30 66 2 -3 Current liabilities 1,097 338 1,368 -5 Total change in operating capital 33 1,067 404 1,370 -8 Cash flow from operations 1,544 838 1,862 1,423

Investing activities Investments and acquisitions of properties -846 -957 - - Sale of properties 409 48 - - Acquisitions of interests in Group companies 34 -278 -628 -162 -1,390 Sale of interests in Group companies 35 267 345 147 210 Other tangible fixed assets -2 -3 - -3 Other financial fixed assets -67 - -919 1,254 Cash flow from investing activities -517 -1,195 -934 71

Financing activities Dividend paid -234 -211 -234 -211 Repurchase of own shares -107 -110 -107 -110 Change in long-term liabilities -693 739 -596 -1,121 Group contributions made - - 22 5

Cash flow from financing activities -1,034 418 -915 -1,437 cash flow statement

Change in liquid assets -7 61 13 57 Liquid assets beginning of period 147 86 124 67 57 Liquid assets end of period 24 140 147 137 124

2008 Wihlborgs annual report accounting principles

The consolidated financial statements and annual report of Change to IAS 40 – Buildings held for invest- Wihlborgs Fastigheter AB (the parent company) for the financial ment purposes and being constructed – The year 2008 have been approved by the Board of Directors and change means that the buildings held for Chief Executive Officer for publication on 12 March 2009 and investment purposes being constructed will be presented to the Annual General Meeting for final shall be shown at their true value instead of approval on 23 April 2009. The parent company is a Swedish in accordance with IAS 16, i.e. normally as limited-liability company (publ) with registered office in Malmö. costs incurred until the property is comple- Wihlborgs’ applies the IFRS and the interpretation of these (IFRIC), ted. This change is not considered to have adopted by the European Union. The consolidated financial sta- any significant effect on the group’s financi- tements have also been prepared in accordance with Recom- al reports. mendation RFR 1:1 of the Swedish Financial Accounting Stan- dards Council (Supplementary Accounting Rules for Corporate Changes 2010 – In the financial year that Groups). The annual accounts of the parent company have been begins on 1 July 2009, the changes in IFRS prepared in accordance with the Swedish Annual Accounts Act 3 – Business acquisitions – and in IAS 27 –

l e s and Recommendation RFR2:1 of the Swedish Financial Accoun- Consolidated accounts shall be applied. ting Standards Council (Accounting for Legal Entities). Devia- This will not affect Wihlborgs’ financial tions between the group’s and the parent company’s accounting reports until 2010. The changes mean that principles are given in the section entitled Parent company’s the definition of what is a business acquisi- p r i n c i p accounting principles. tion is changed. This can mean that more acquisitions than previously can be classi- New and future IFRS-standards and interpretations fied as business acquisitions. Accounting As of 2009 the following new and amended recommendations may also be affected by step-wise acquisi- and applications that are considered relevant to Wihlborgs will tion, recalculation of the purchase price and transaction costs.

accounting apply. Other new or amended IFRS standards IFRS 8 Operative segments – According to the standard, segment or interpretations in years to come are not 58 accounting is based on how activities are managed and monitored expected to have any direct effects on future in internal reporting to the highest executive decision maker. In financial reports. Wihlborgs’ case this has been identified as the group management. The change is not considered to have any significant effect of the Use of estimates division of segments shown in future financial reports. In preparing the financial statements in accordance with generally accepted accounting Change in IAS 1 Structure of financial reports – The reworking principles, the company’s management and means only that the changes to assets and liabilities that refer to Board need to make estimates and assump- transactions with the owners shall be shown in the account of tions which affect the reported balance sheet changes in equity. Other changes in equity shall be shown either items and income and expense items as well as an addition to the income statement or in an individual supp- as other reported information. These estima- lementary report to the income statement. The change in the tes are based on experience and on assump- standard will result in minor changes to the presentation layouts tions that the management and Board believe in the group’s financial reports. to be reasonable under present circumstances. The conclusions that are drawn from the Changes to IAS 23 Borrowing costs – The reworked standard basis for determining the carrying amounts demands that borrowing costs be activated with regard to assets of assets and liabilities in cases where these such as properties. These necessarily take a significant time to amounts cannot readily be determined on complete so that they can be used or sold. Earlier there was the the basis of information from other sources. possibility of treating these as costs. Wihlborgs has already cho- Actual figures may differ from these estima- sen to apply activation of loan costs in accordance with IAS 23 tes if other assumptions are made or other con- and is therefore not affected by the change. ditions are present. The financial statements

Wihlborgs annual report 2008 are sensitive to the estimates and assumptions the property value instead. When assessing market values after used for the valuation of investment proper- the time of acquisition, the property value is adjusted by the dis- ties. For more information about valuation count received. In the case of an operating acquisition, the basis and valuation methods see pages 36-37. deferred tax is recorded at a nominal rate on the properties’ Tax claims and deductions for deficits have surplus value and any temporary differences are referred to the been considered. Those that are subject to acquired assets or liabilities. The company acquisitions that took significant uncertainty are not taken into place after the group’s formation have been treated as asset account when estimating the tax on the pro- acquisitions. fit/loss for the year and income tax that is recoverable (not included in the total deficit Translation of foreign operations deduction shown). The functional currency of the Group’s foreign operations is the currency in which the respective Group units conduct their busi- Consolidated financial statements ness activities. The Group’s financial reports are presented in The consolidated financial statements com- Swedish kronor (SEK), which is the reporting currency of the prise the parent company Wihlborgs and all parent company. Profit and loss accounts and balance sheets for companies in which the parent company foreign operations are translated into SEK according to the cur- directly or indirectly owns more than 50 per rent exchange rate method, which means that balance sheets cent of the votes or in other ways exercises a are translated at the exchange rate applying on the balance controlling influence. sheet date, except in the case of equity, which is translated at the The consolidated financial statements are historical exchange rate. Profit and loss accounts are translated based on accounting documents drawn up at the average exchange rate for the period. The resulting trans- for all Group companies as at 31 December lation difference is recognised directly in equity. and have been prepared in accordance with l e s the acquisition method. However, in this Joint Ventures Group the Group companies that were Companies in which Wihlborgs has a long-term ownership com- acquired in December 2004 have been car- mitment and exercises a controlling influence together with one p r i n c i p ried at the amounts reported in the Fabege or several business partners are reported in the consolidated pro- Group under the joint verification rules. fit and loss accounts and balance sheets according to the equity In the consolidated profit and loss method. The income statement item resulting from participations account acquired or divested companies in joint ventures shows Wihlborgs’ annual proportion of the have been recognised only to the extent result and, in relevant cases, the result from the sale of participa- corresponding to the period of ownership. tions in joint ventures. The value of the participations is adjusted Internal sales and transactions and profits in the balance sheet according to the proportion of the profit and

and losses within the Group have been eli- with any dividends. Adjustments are made to the financial state- accounting minated in the consolidated financial statement and the balance sheet for any internal profits and write- 59 ments. downs. Accounts that refer to joint ventures are based on the latest annual accounts for the respective company(ies) adjusted Acquisitions of properties via companies for any deviations in the accounting principles and by an assessed A company acquisition can be considered adjustment for events and transactions up to the Wihlborgs either an asset acquisition or an operating group’s end of accounting period. acquisition. A company acquisition, whose primary purpose is to gain access to the Transactions in foreign currencies purchased company’s properties and where Transactions in foreign currencies are translated into Swedish the company’s management organisation kronor at the exchange rate applying on the transaction date. and administration are of subordinate Monetary assets and liabilities in foreign currencies are translated importance for the execution of the acquisi- at the exchange rate applying on the balance sheet date, and the tion, is normally treated as an asset acquisi- resulting exchange rate differences are reported in the profit and tion. A company acquisition where the loss account. Exchange rate differences relating to operating purchased company’s management organi- receivables and liabilities are reported in operating profit/loss, sation and administration are of great sig- while exchange rate differences relating to financial assets and nificance to the acquisition’s execution and liabilities are reported in result from financial investments. evaluation is treated instead as an operating acquisition. In the case of an asset acquisi- Income tion, there is no account of the deferred tax Rental income from the company’s property management activities on the properties’ surplus value and any is recognised in the profit and loss account in the period to which discount referred to the deferred tax reduces it refers. In cases where a tenant is offered a discounted rent for a

2008 Wihlborgs annual report certain period and pays a higher rent at other times, accruals are made for the resulting deficit or surplus during the term of the contract unless the rental discount was due to gradual occupation or a similar circums- tance. Income attributable to early redemp- tion of rental agreements is recognised as income immediately unless there are outstanding obligations towards the tenant. Income from property sales are reported when the essential risks and benefits, related to the ownership of the properties, have been transferred to the buyer and when its likely that the financial benefits related to the sale accrues to Wihlborgs, normally this means the accounting is made upon the date of possession. Interest income is recognised in the period to which it refers. Dividends on shares are recognised in the period in which the right to receive payment is deemed to be secure.

Expenses The term property costs includes all costs for the rented property. This includes direct property costs such as those for operation, maintenance, site leasehold fee and property tax. The term also includes indirect property costs such as those for renting out and property administration. The term central administration includes costs for group management as well the costs of being a listed company and other items associated with the type of incorporation including central

accounting principles advertising and other marketing. Interest costs have been deducted from the result for the period to which they refer except where 60 they have been included in a building project’s acquisition value. The loan portfolio’s average interest rate has been used when calculating the interest cost to be capitalised. Capitalisation of the interest cost has been applied only to the consolidated accounts.

Leasing Rental agreements relating to investment properties are classified as operational leases. These agreements are reported in accordance with the principles for reporting of income describe above. There are also a number of relatively small leasing contracts in which Wihlborgs is the lessee. These leasing contracts, which primarily relate to cars, are reported as operational leases.

Compensation to employees Compensation to employees in the form of salaries, holiday pay, paid sick leave, etc. is Mercedes Nordic headoffice at Dockan in Malmö. Mercedes moved from Copenhagen recognised as it is earned. Pensions and other to Malmö in October 2008. compensation paid after termination of

Wihlborgs annual report 2008 employment are classified as defined contri- except where the underlying transaction is credited or charged bution or defined benefit schemes. Commit- directly to equity. In such cases the tax is also recognised direc- ments relating to defined contribution sche- tly in equity. mes are met through premiums paid to the government agencies or companies that Appropriations and untaxed reserves administrate the schemes. A number of Tax laws in Sweden and certain other jurisdictions allow for the Wihlborgs employees have ITP occupational deferral of tax payments through provisions to untaxed reserves pension schemes which involve regular in the balance sheet via the income and expense item appropria- payments to Alecta. Under IFRS these are tions. The legal rules on depreciation allow for depreciation in classified as defined benefit schemes involv- excess of straight-line depreciation. Appropriations and untaxed ing several employers. As there is not suffi- reserves are not reported in the consolidated financial statements, cient information to report these as defined however. In the consolidated balance sheet untaxed reserves benefit schemes, they have been reported as have been divided into deferred tax liabilities and equity. There- defined contribution schemes. All employ- after, equity is eliminated so that only equity earned after the ees, except for the Chief Executive Officer time of acquisition remains. In the consolidated profit and loss receive shares in Wihlborgs Vinstandels- account provisions to or elimination of untaxed reserves is divi- stiftelse. This fund is completely indepen- ded into deferred tax and profit for the year. dent of Wihlborgs. Allocations to the profit- Properties sharing fund are shown as a wage cost in the All fully developed properties in the Group are classified as period to which the profit shares are related. investment properties, as they are held for the purpose of ear- ning rental income or for capital appreciation or a combination Income tax of the two. Investment properties are recognised at fair value in The tax on profit for the year includes cur- the balance sheet, in accordance with IAS 40. The change in rent and deferred income tax for Swedish value is recognised in the profit and loss account and is included and foreign Group units. Current tax is based in operating profit/loss. The Group’s properties are reported as on the taxable profit for the year, which l e s fixed assets in the balance sheet. As the properties are recogni- differs from the reported profit in that it sed at fair value, depreciation is no longer reported in the con- has been adjusted for non-taxable income, solidated financial statements. Investment properties are valued

non-deductible expenses and changes in p r i n c i p on a quarterly basis according to an internal valuation model. At temporary differences between the carry- year-end, the properties are valued by external values. The valu- ing amounts and tax bases of assets and ation model used is based on long-term valuations of returns liabilities. The Group’s current tax has using the present value of future payments with differentiated been calculated on the basis of tax rates required rates of return for each property depending on loca- applying on the balance sheet date. Defer- tion, use, condition, standard and other factors. The true value red tax is calculated using the balance sheet of properties that have been acquired though asset acquisition liability method. Under this method defer- has been adjusted downwards by an amount that is equal to any red tax liabilities and assets are recognised discount received for the deferred tax at the time of acquisition. accounting for all temporary differences between the Future expenses in connection with projects for rebuilding and 61 carrying amounts and tax bases of assets extensions are activated for properties in the cases where projec- and liabilities and for all tax deductions ts mean an increase in the value of the property by comparison and loss carry-forwards. Deferred tax liabi- with the standard before the measures were commenced. In the lities and tax assets are calculated using case of major projects, the interest is activated during the pro- the expected tax rates at the time of rever- ject period. Expenditure for repair and maintenance shall be all- sal of the temporary difference. Deferred ocated in the period during which they arise. Pages 36-37 provide tax assets are reduced to the extent that it further information on the external property evaluation. Note is unlikely that it will be possible to realise 16 gives an account of the classification of the property stock the underlying tax asset within the fore- and its net values. seeable future. In the case of asset acquisitions no deferred tax on consolidated Definition of segments goodwill and negative goodwill is recogni- Activities in reporting and accounting are divided into different sed initially for the acquired assets and lia- market areas that constitute the group’s only division into seg- bilities. Deferred tax is recognised at the ments. The three market areas are: Malmö, Helsingborg and the nominal current tax rate with no discount. rest of the Öresund region. Deferred tax assets and deferred tax liabilities are eliminated if they refer to income taxes payable to the same tax authority Equipment and if the Group is able to settle the tax by Assets are recognised in the balance sheet at accumulated acqui- payment of the net amount. Both current sition value less accumulated straight-line depreciation and and deferred tax is recognised in the pro- impairment. The assets are written off at 20 per cent of acquisi- fit and loss account as income or expense, tion value per year.

2008 Wihlborgs annual report Shareholders equity Change of derivative value in the income In the consolidated financial statements shareholders equity is statement, while currency derivatives which divided into share capital, other contributed capital, reserves and profit brought forward. In the consolidated financial state- hedge net assets in foreign subsidiaries are ments no breakdown into unrestricted and restricted equity is booked directly against equity. Fair value made in the balance sheet, unlike in the parent company, where is calculated on the basis of official notes such a breakdown is made in accordance with the Annual regarding interest rates and currency ex- Accounts Act. Dividends to the shareholders are limited to an change rates. amount that allows for full provision to be made for restricted equity in the parent company after payment of the dividend. Trade creditors – Trade creditors have been Moreover, a dividend may only be paid if the dividend is justifiable valued at accrued acquisition value. in view of the equity requirements arising from the nature, scope and risks associated with the business and the consolidation The parent company’s needs, liquidity and position of the company and Group. When accounting principles repurchasing own shares, the equity is reduced by the purchase The inconsistencies between the parent price including transactions costs. company’s and the Group’s policies stem from the limited opportunities for apply- Financial instruments ing the IFRS to the parent company as a Financial assets and liabilities are recognised in the balance consequence of legal provisions, mainly in sheet when the company becomes a party to the commercial the Swedish Company Accounts Act, taking terms and conditions of the instrument. A financial asset is into account the link between accounting removed from the balance sheet when the rights inherent in the and taxation. agreement are realised, expire or if the company loses control over them. A financial liability is removed from the balance Shares in subsidiaries sheet when the obligation arising from the agreement has been Shares in subsidiaries are shown in the pa- met or ceased for other reasons. Financial instruments are rent company according to the acquisition recognised either at acquisition value or fair value, depending value method. The book value is checked on the categorisation under IAS 39. The principles governing continuously against the subsidiary’s con- security accounting according to IAS 39 have not been applied. solidated equity. If the book value is below the subsidiary’s consolidated value there Cash and bank – Cash and bank comprises the balance in the will be a write-down that impacts on the bank at the year end and is shown as the nominal value. income statement. If an earlier write-down is no longer justified, this will be returned. Receivables – Long-term receivables primarily refer to promissory

accounting principles note loans made in connection with the sale of properties or Group contributions companies. It is intended that these promissory notes will be Group contributions and shareholder ad- held to maturity. That part of the promissory note receivables ditions are shown in accordance with a 62 due within a year is shown in other receivables. Receivables, statement from the Council for financial including trade debtors are valued at the acquisition value with reporting. This means that group contribu- a deduction for reservation of uncertain receivables. The need tions will be shown according to their eco- for reservation is assessed individually. If promissory note loans nomic meaning. Group contributions that run with interest terms that deviate form market loan terms, the are provided or received and whose purpose acquisition value deviates from the nominal value. is to minimise the group’s total tax and any tax effects are shown directly in the balance Loans – Loans have been recognised at acquisition value. sheet as a reduction or increase in unrestricted equity. Shareholder additions are shown Derivatives – Derivatives are financial instruments which are against the provider as an increase in shares valued at fair value in the balance sheet. Changes of value as in the subsidiary and an increase in the regards interest derivatives are recognised under the heading unrestricted equity of the recipient.

From the entrance to the marina to Dockan in Malmö, a calm day in February 2009.

Wihlborgs annual report 2008 notes

■ Unless otherwise specified, amounts are Severance pay A mutual period of notice of six months applies for the Chief Executive Officer. stated in SEK million. I n case of termination by Wihlborgs the CEO is entitled to severance pay Note 1 – employees and salary expenses, etc. equivalent to 18 months’ salary. Severance pay is offset by other income. No severance pay is due in case of termination by the CEO. A mutual notice period of six months applies between the company and other Average no. of employees 2008 of which men 2007 of which men senior executives. In case of termination by the company the senior executive is Parent company 58 38 58 38 entitled to severance pay of up to 18 months’ salary. Severance pay is offset by other income. No severance pay is due in case of termination by the senior Subsidiaries 24 19 24 18 executive. Group, total 82 57 82 56 Basis of preparation Salaries, other compensation Salaries Social- Salaries Social- The compensation of the Chief Executive Officer for the financial year 2008 was and other security and other security decided by the Board of Directors. The compensation of other senior executives and social-security contribution compens. contrib. compens. contrib. 2008 2008 2007 2007 was decided by the CEO.

Parent company 28 15 27 16 Profit-sharing foundation of which pension expenses 6 6 Wihlborgs has a profit-sharing foundation that comprises all employees except Subsidiaries 10 4 10 4 the CEO. Each year an allocation is made to the profit-sharing foundation based on the result of the parent company. The profit-sharing foundation shall place of which pension expenses 1 1 its assets in Wihlborgs Fastigheter AB shares. Payment to the employees shall Group, total 38 19 37 20 take place in accordance with the ratified rules of the foundation. The human of which pension expenses, total 7 7 resources costs for 2008 include an allocation to the profit-sharing foundation of SEK 2,876 thousand (2,617).

Sick leave 2008 2007 Fees and Group Parent company Total sick leave as a percentage of total ordinary working time 2,01 2,83 expenses, SEK ’000 2008 2007 2008 2007 Of which share of long-term sick leave (continuous Deloitte AB leave of 60 days or more) 37,40 31,50 audit assignments1 2,257 1,900 2,257 1,900 Sick leave, women 2,91 4,70 other assignments 1,284 855 1,284 855 Sick leave, men 1,58 1,89 Aaen & Co Statsautoriserede Sick leave, employees <30 år 1,74 1,66 Revisorer A/S Sick leave, employees 30–49 år 1,25 1,11 audit assignments1 55 50 - - s Sick leave, employees >49 år 2,58 4,30 other assignmets 157 191 - - 1 Audit assignments refers to the examination of the annual report and accounting records and

Breakdown by sex and of the Board of Directors and CEO’s management of the company, other tasks incumbent o t e senior executives Board of Directors Senior executives upon the company’s auditor as well as advice and other assistance occasioned by observations made in the course of such examinations or the carrying-out of such other tasks. 2008 2007 2008 2007 All other work is classified as other assignments. Men 4 5 3 3

Women 3 3 2 2 Note 2 – Financial instruments N Total 7 8 5 5 63 and financial risk management Compensation of senior executives Financial policy Principles Wihlborgs’ financial activities are guided by the financial policy adopted The Chairman and other Directors are paid a total fee of SEK 820,000 in annually by the Board. The financial policy lays down a set of general rules for accordance with the decision of the AGM. Chairman of the Board received SEK how Wihlborgs’ finance function should be managed and how the risks in the 220,000 and other board members, with exception of the CEO, received SEK company’s financial activities should be limited. The finance function is a Group 120,000. Compensation of the Chief Executive Officer and other senior function with responsibility for the Group’s financing, liquidity planning and executives comprises basic salary, other benefits and pension. In addition to the management of financial risks. The overall objectives of the finance permanent salary compensation will be maximized and related to the salary. function are to: Other senior executives refers to the Finance Director, Property Director, Public Relations Director and Executive Assistant to the CEO, who along with the CEO - Secure Wihlborgs’ short- and long-term capital requirements. comprised Group management in 2008. For the current composition of Group - Optimize net financial items in view of current risk limits. management, see page 75. - Adapt the company’s financing on the basis of Wihlborgs’ activities for the No variable or share-related compensation is paid to Group management.. purpose of achieving and maintaining a stable longterm capital structure. Management of financial risks Compensation and other Basic Variable Other Pension Total Liquidity- and borrowing risk salary/fee Compens. benefits benefits in 2008, SEK ‘000 Liquidity and borrowing risk refers to the risk that the company will be unable to Chairman of the Board 220 - - - 220 meet its payment obligations as a result of insufficient liquidity or difficulties in Other Directors 600 - - - 600 obtaining new loans. The objective is to ensure that Wihlborgs is always able to conclude transactions when an opportunity arises and meet its obligations. Chief Executive Officer 2,443 - 89 854 3,386 Liquidity risk is managed by ensuring that Wihlborgs has access to credit lines or Other senior executives 3,674 - 190 1,109 4,973 cash and cash equivalents that can be used at short notice. Borrowing risk is the risk that finance will be unavailable or obtainable only at highly unfavorable Other benefits refer to company cars and computers. terms at a certain time. To limit the borrowing risk, Wihlborgs strives to use Pension expenses refer to the expense recognised in the profit and loss credit facilities with long maturities as well as a broad pool of creditors. Through account for the year. The retirement age for the Chief Executive Officer is 65 long-term committed lines of credit, Wihlborgs has secured access to finance. years. Expenses relating to the Chief Executive Officer’s pension refers to a Wihlborgs’ total available credit is SEK 8,404m of which SEK 8,271m had been premium of 35 per cent of the CEO’s pensionable salary during his period of drawn on 31 December 2008. An agreement on a further credit facility of SEK employment. For other senior executives the ITP occupational pension plan 500 million was signed in the beginning of 2009. applies and the retirement age is 65 years.

2008 Wihlborgs annual report Cont. note 2 – Interest- and maturity structure as at 31 December 2008 Interest risk Interest maturity Loan maturity Interest risk refers to the risk that the company’s results or cash flow will be Maturity, Average interest Loan amount Available credit Used affected by a change in market interest rates. Interest expenses are the single years rate largest expense item for Wihlborgs. How much and how fast a change in interest SEKm % SEKm SEKm rates affects the results depends on the chosen fixed-rate term. Increases in interest 2009 4,448 5,68 1,505 1,405 rates are often prompted by higher inflation. In commercial rental agreements rents are normally index-adjusted in line with rising inflation. 2010 35 3,01 880 873 2011 1,000 4,28 1,800 1,793 Through a combination of loans with short fixed-rate terms and interest rate 2012 55 4,93 3,353 3,334 swaps a large measure of flexibility can be achieved and the fixed-rate term can be adjusted to meet the targets for the company’s financial activities. And 2013 - - without the need to re-negotiate the underlying loans. To manage interest risk >2013 2,733 4,23 866 866 and achieve stability in net financial items, the average fixed-rate term of Wihlborgs’ Total 8,271 5,02 8,404 8,271 borrowings has been adjusted to the estimated risk level and interest rate expectations. As at 31 December 2008 Wihlborgs’ average fixed-rate term including The average interest rate will be 3.32 per cent excluding the effects of the Stina effects of used derivatives was 44 (16) months. The average maturity of loans, swaps. including committed lines of credit, was 2,8 (3,5) years. Counterparty risk The derivatives portfolio contains eleven derivative products Counterparty risk is the risk that a counterparty will be unable to meet its delivery 1. A 7.7-year threshold swap of SEK 1 billion that contains an interest threshold or payment obligations. In Wihlborgs’ financial activities counterparty risk arises of 4.75 per cent. Providing the short-term interest, 3 months Stibor, does not primarily when the company invests surplus liquidity, enters into an interest rate exceed 4.75 per cent, Wihlborgs will pay 3.48 per cent against receiving 3 swap or obtains long-term credit commitments. To reduce counterparty risk, months Stibor. Wihlborgs’ financial policy states that the company should only enter into agreements with banks or equivalent credit institutions with a rating of A or higher 2. An 8.4-year closable swap of SEK 1 billion where Wihlborgs has paid a from both Moody’s and Standard & Poor’s. Risks relating to trade debtors are coupon interest rate which, during 2008, amounted on average to 3.79 per reduced through customary credit assessments of prospective tenants prior to cent and has received interest corresponding to 3 months Stibor. acceptance. Similarly, the company also assesses the creditworthiness of any 3. A 9.2-year closable swap of SEK 500 million where Wihlborgs will pay 4.02 promissory note receivables arising from the sale of properties and/or businesses. per cent and will receive 3 months Stibor. 4. Two closable swaps each of SEK 500 million with a term of 2.8 years where Currency risk Wihlborgs will pay 3.76 and 3.79 per cent respectively and will receive 3 Currency risk refers to the negative impact on Wihlborgs’ income statement and months Stibor. balance sheet as a consequence of changes to rates of exchange. Wihlborgs owns properties in Denmark through its subsidiary Wihlborgs A/S. To eliminate the effects 5. Three curve gradient swaps totalling SEK 500 million with a term of 4.2 – 4.5 of changes in rates of exchange, financing has been done in Danish kroner and loans years where Wihlborgs receives a discount averaging 1.18 interest points as taken out in Danish kroner directly in the Danish company and through forward trans- long as the difference in the swap interest for 10-year interest against a 2- actions in Danish kroner for the purpose eliminating remaining currency exposure in year interest is positive. the international net assets. Wihlborgs currently has a forward transaction that is due 6. Three Stina swaps amounting to SEK 4.8 billion up to and including 8 April on 21 December 2009 when DKK 200 million shall be delivered at the same time that 2009. The swap contract means that Wihlborgs will pay a fixed rate of SEK 292.8 million is received. interest of 4.69 per cent and will receive Stibor Tn. Operational risk Valuation Operational risk in Wihlborgs’ financial activities refers to the risk of incurring as Derivatives are valued at fair value according to IAS39.The valuation was made a result of inadequate procedures and/or irregularities. Good internal control to present value of forthe coming cash flow. Expected market rents during the procedures, appropriate administrative systems, staff training and access to derivatives remaining term has been used when determine future cash flows. s reliable valuation and risk models constitute a good foundation for reducing operational risks. Wihlborgs’ finance function continuously monitors the company’s administrative security and control.

o t e Note 3 – Segments

The Group’s business is geographically divided into market areas, which also constitute the primary segment for reporting and accounting purposes. The business is also broken down by property category. Borrowings and financial expenses have been broken down by market area based on each area’s share of the total value of the properties. Each market area’s result has been charged with the same percentage tax as the group as a whole. N 64 Primary segment Malmö Helsingborg Rest of Öresund Unattributed Total Market areas 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 Rental income 612 570 366 324 190 141 - - 1,168 1,035 Property expenses -178 -172 -106 -97 -52 -43 - - -336 -312 Net operating income 434 398 260 227 138 98 0 0 832 723

Central administration ------31 -30 -31 -30 Change in value of properties -152 506 -126 413 -145 124 - - -423 1,043 Operating profit/loss 282 904 134 640 -7 222 -31 -30 378 1,736

Financial income ------14 7 14 7 Financial expenses -195 -134 -100 -70 -70 -52 -214 15 -579 -241 Profit/loss before tax 87 770 34 570 -77 170 -231 -8 -187 1,502

Tax on profit for the year -22 -199 -9 -147 20 -44 149 2 138 -388 Net profit/loss 65 571 25 423 -57 126 -82 -6 -49 1,114

Properties 7,268 6,990 3,740 3,687 2,612 2,720 - - 13,620 13,397 Other assets ------420 325 420 325 Total assets 7,268 6,990 3,740 3,687 2,612 2,720 420 325 14,040 13,722

Loans 4,414 4,068 2,271 2,146 1,586 1,583 - - 8,271 7,796 Other liabilities ------1,635 1,453 1,635 1,453 Total liabilities 4,414 4,068 2,271 2,146 1,586 1,583 1,635 1,453 9,906 9,249

Acquisitions of properties for the year 297 267 47 181 165 773 - - 509 1,221 Other investments in properties 302 351 228 124 92 102 - - 622 577 Wihlborgs annual report 2008 Note 4 – rental income Note 9 – other operating

Group Parent company income and expenses 2008 2007 2008 2007 Parent company 2008 2007 Gross, rental income 1,255 1,129 - - Other operating income 77 79 Cost, unlet -87 -94 - - Other operating expenses -77 -79 1,168 1,035 0 0 0 0

Rental income includes rent and charges passed on to tenants for heating, Refers to expenses passed on by the parent company to other Group companies, electricity, water, sewage and property tax as well as deductions for rent primarily property administration, property management and share of central discounts for which accruals have been made during the term of the respective administration. contracts.

Note 5 – property expenses Note 10 – profit/loss from interests in group company Group Parent company 2008 2007 2008 2007 Parent company 2008 2007 Heating, electricity and water 111 105 - - Dividends on interests 391 406 Operating expenses 67 58 - - Profit sold interests 134 157 Repairs and maintenance 51 47 - - Impairment loss interests -72 -29 Property tax 52 48 - - Reversing participation rights 1 - Ground rent 3 4 - - 454 534 Property administration 52 50 - - 336 312 0 0 Note 11 – profit/loss from interests in joint ventures

NotE 6 – depreciation Group Parent company 2008 2007 2008 2007 In accordance with IAS 40, investment properties are reported at fair value, Share in profit/loss -2 - - - which means that no depreciation is recognised for the property portfolio. -2 0 0 0 Group Parent company Equipment 2008 2007 2008 2007 Property management 1 1 0 0 Central administration and Note 12 – profit/loss from other securities 2 1 1 1 marketing and assets that are fixed assets 3 2 1 1 Group Parent company 2008 2007 2008 2007 Interest income, group companies - - 389 313 Note 7 – Central administration s Interest income, other 6 3 - - and marketing 6 3 389 313 o t e Refers to G roup management expenses, expenses attributable to the public nature of the company and other expenses connected with the company type. Property-related administration is not included, as it is treated as a property Note 13 – interest expenses and similar items expense. Expenses for central administration and marketing includes deprecia- N tion on central equipment of 2 (1) in the G roup and 1 (1) in the parent company. Group Parent company 65 2008 2007 2008 2007 NotE 8 – change in value of investment Interest expenses, group companies - - 135 108 properties Interest expenses, other 365 256 323 218 365 256 458 326 The year’s value change refers to properties sold as well as the stock of properties at the end of the year. Note 14 – change in value of derivatives

Group Parent company Interest rate derivatives are a financial instrument which under IAS 39 should be 2008 2007 2008 2007 recognised at fair value in the balance sheet. Changes in the value of interest Change in value sold rate derivatives are recognised in the item Change in value of derivatives in the 13 23 - - properties profit and loss account. The valuation principles of derivatives appears in Note 2. Change in value of property -436 1,020 - - portfolio 31 dec -423 1,043 0 0 Realised value change, i.e. the difference between the selling price of properties on one hand and the total capital invested in these properties on the other amounts to SEK 163m (144). Total invested capital refers to the original investment or acquisition increased by the investments made in the respective properties during the remaining time of the holding. To be able to determine the change in value for each period, the market value of the properties is assessed at the end of each quarter. Internal valuations are made for 31 March, 30 June and 30 September. An external valuation is made for 31 December. Malmöbryggan Fastighetsekonomi AB and Savills Sweden AB have valued all of Wihlborgs’ Swedish properties as at 31 December 2008. The market value of each property was assessed individually. Our Danish properties have been valued by DTZ. Pages 36-37 gives an account of valuation methods, value basis, market parameters etc.

2008 Wihlborgs annual report Note 15 – tax on profit for the year the intention of being sold and therefore no property is shown as stock. SEK 46m (38m) of the properties’ stated value refers to activated loan costs. When Parent estimating the loan cost to be activated, an interest rate corresponding to the Group company 2008 2007 2008 2007 average interest on the loan portfolio has been applied. As at 31 December 2008, the interest rate was 5.02 per cent (4.25). Current tax on profit for the year 2 12 - -

Adjustment for current tax from previous years 5 -1 - - 2008 2007 Total current tax 7 11 0 0 Rateable value of Swedish properties 5,969 5,653 Deferred tax -145 377 -76 -2 Net value of Swedish properties 12,247 12,015 Total tax -138 388 -76 -2 Malmöbryggan Fastighetsekonomi AB and Savills Sweden AB have valued all of Nominal tax on profit after -49 419 43 146 Wihlborgs’ properties in Sweden as at 31 December 2008. The values of the financial items properties are individually considered to correspond to the market value of the Tax effects of adjustment items respective property. The properties in Denmark have been valued by DTZ. Page 36-37 gives an account of valuation methods, value basis, market parameters etc - Dividends from group companies - - -103 -114 that are used when assessing the market value of the property stock. - Write-down of participations in group - - 19 8 companies Change in the net value during the year - Revaluation of tax on temporary differences Group Parent company as a consequence of the change in the -66 7 - - 2008 2007 2008 2007 nominal tax rate Opening acquisition value 13,397 10,888 - - - Tax-free profit on the sale of group -31 -40 -36 -44 company(ies) Property acquisitions 509 1,221 - - - Other non-deductible and tax-free Investments 622 577 - - respectively 3 3 1 2 Sales and disposals -678 -383 - - Total tax excl current tax from previous -143 389 -76 -2 years Change in value -423 1,043 - - Currency translation 193 51 - - Adjustment for current tax from previous years 5 -1 - - Carrying amount 13,620 13,397 0 0 -138 388 -76 -2

In the parent company tax income of SEK 6m (1) attributable to Group Note 17 – equipment contributions paid has been credited directly to equity. Nominal tax is 28% (28) in Sweden and 25% (25) in Denmark. The nominal rate of tax in Sweden will be Group Parent company lowered in 2009 to 26.3 per cent. This tax rate has been used in this year’s 2008 2007 2008 2007 financial statement when calculating the deferred tax on temporary differences as well as deficit deductions. Opening acquisition value 39 35 7 4 The group shows a current tax on profit for the year of SEK 2m. The current tax Investments 2 7 1 3 is calculated on the profit subject to tax in companies that are part of the group. Sales and disposals -3 -3 -1 - s This is lower than the group profit before tax. Closing accrued acquisition values 38 39 7 7 The principle reasons for this are: o t e - Value change of management properties not being included in the taxable Opening depreciation -30 -27 -2 -1 result Acquisitions via companies - -2 - - - Permitted depreciation on buildings for tax purposes, land improvements and Sales and disposals 3 1 - - property inventories that do not affect the consolidated result - Direct deductible amount for tax purposes regarding rebuilding investments on Depreciation charge for the year -3 -2 -1 -1 N 66 properties not affecting the consolidated result. Accumulated depreciation -30 -30 -3 -2 - Tax-related applied deficit deduction does not affect the consolidated result. 8 9 4 5 Calculating the current tax on profit for the year in the group Note 18 – interest in group companies 2008 2007 Pre-tax profits -187 1,502 Parent company 2008 2007 Value changes 637 -1,043 Opening acquisition value 4,054 2,717 Depreciation of properties for tax purposes -296 -286 Acquisitions 161 1,364 Direct deductions, property investments -194 -141 Shareholder contributions provided 1 26 Deficit deduction used - -39 Sales -13 -53 Miscellaneous 46 50 Outgoing acquisition value 4,203 4,054

Taxable profit 6 43 Opening write-down -1,056 -1,027 Current tax on profit for the year 2 12 Write-down for the year and reversings -71 -29 Closing write-down -1,127 -1,056 Note 16 – investment properties 3 076 2 998 Wihlborgs’ properties are classified as buildings held for investment purposes. Buildings held for investment purposes are properties that are held for the purpose of generating rent income or value increase or a combination of both. Subsidiary Capital- Carrying Buildings held for investment purposes are shown in the balance sheet at their Name/Reg. no. Reg. office share % amount true value. Bastionen Syd AB, 556072-2042 Malmö 100 90 Wihlborgs leases offices in Copenhagen, Lund, Malmö and Helsingborg in its Berga V5 AB, 556742-9443 Malmö 100 1 own properties. The lease value of its own leases is minor of the properties’ total lease value. This is why no classification has been made for these Exab Utvecklings AB, 556353-2828 Malmö 100 0 properties as real estate used in business operations. Fastighets AB Bergakniven, 556742-7454 Malmö 100 11 Wihlborgs does not have any properties that have been acquired or rebuilt with Fastighets AB Bronsdolken, 556112-0345 Malmö 100 0

Wihlborgs annual report 2008 Subsidiary Capital- Carrying Subsidiary Capital- Carrying Name/Reg. no. Reg. office share % amount Name/Reg. no. Reg. office share % amount Fastighets AB Bytaregränd, 556754-8846 Malmö 100 0 Wihlborgs N.Vallgat. 80-82 AB, 556675-2613 Malmö 100 0 Fastighets AB Fortet, 556090-5621 Malmö 100 137 Wihlborgs Nils 24 AB, 556704-3731 Malmö 100 0 Fastighets AB Flygvärdinnan 5, 556708-8512 Malmö 100 13 Wihlborgs Polisett AB, 556703-0589 Malmö 100 0 Fastighets AB Kastrullen, 556754-8812 Malmö 100 0 Wihlborgs Riggen AB, 556701-5028 Malmö 100 0 Fastighets AB Kvävet, 556222-8071 Malmö 100 2 Wihlborgs Ritaren 1 AB, 556675-2605 Malmö 100 1 Fastighets AB Oxigenium, 556754-8820 Malmö 100 1 Wihlborgs Rosengård AB, 556699-7986 Malmö 100 0 Fastighets AB Plinius, 556033-6538 Malmö 100 16 Wihlborgs Skrovet 3 AB, 556468-5385 Malmö 100 1 Fastighets AB Postterminalen, 556754-8853 Malmö 100 0 Wihlborgs Skrovet 4 AB, 556173-9417 Malmö 100 0 Fastighets AB Sockerbetan, 556754-8861 Malmö 100 0 Wihlborgs Skrovet 5 AB, 556237-6268 Malmö 100 0 Fastighets AB Stillman, 556082-1752 Malmö 100 38 Wihlborgs Skrovet 6 AB, 556681-1898 Malmö 100 0 Fastighets AB Yxstenen, 556691-4437 Malmö 100 7 Wihlborgs Sparven 15 AB, 556704-3624 Malmö 100 215 Fastighets AB Åmålsgatan, 556754-8838 Malmö 100 0 Wihlborgs Sqvalpan AB, 556675-2399 Malmö 100 0 Förvaltnings AB Haspen, 556466-2533 Malmö 100 16 Wihlborgs Sufflören 3 AB, 556704-3640 Malmö 100 7 Hilab Malmö AB, 556660-1786 Malmö 100 0 Wihlborgs Sydporten AB, 556726-0202 Malmö 100 48 Hundlokan 10 i Malmö AB, 556730-4489 Malmö 100 31 Wihlborgs Söderarm 11 AB, 556675-2407 Malmö 100 0 Ideon AB, 556239-8718 Lund 40 80 Wihlborgs Uvenine AB, 556695-2502 Malmö 100 0 Kalinehuset AB, 556129-5824 Malmö 100 152 Wihlborgs Vikingen 10 AB, 556675-3082 Malmö 100 0 Kniven 2 AB, 556706-9355 Malmö 100 5 Wihlborgs Väktaren 3 AB,556743-6109 Malmö 100 137 Kolgafour AB, 556627-7843 Malmö 100 7 Wihlborgs Värjan 9 AB, 556742-8312 Malmö 100 11 Lund Lagret 1 AB, 556730-3820 Malmö 100 35 Wihlodia AB, 556301-8109 Malmö 100 38 Lunds Byggmästaregille, AB, 556058-9888 Malmö 100 1 WJ Bygg AB, 556060-0529 Malmö 100 5 M2 Fastigheter AB, 556101-4332 Malmö 100 555 3,076 Malmö Börshus AB, 556115-8543 Malmö 100 40 The Group companies comprises 129 (120) Medeon Fastigheter AB, 556034-1140 Malmö 100 70 Neptuninnan AB, 556743-5465 Malmö 100 64 Ringcentralen Fastighets AB, 556091-4276 Malmö 100 21 NotE 19 – interests in joint ventures Ringcentralen i Helsingborg Fastighets AB, Malmö 100 0 Group Parent company 556115-9483 2008 2007 2008 2007 Ringcentralen i Kristianstad Fastighets AB, Opening acquisition value 52 60 52 52 Malmö 100 0 556100-7641 Acquisitions 16 - - - s Ringcentralen i Tingsryd Fastighets AB, Withdrawal of capital - -8 - -

Malmö 100 0 o t e 556240-3633 Share in profit/loss -2 - - - Ringcentralen i Älmhult AB, 556120-9759 Malmö 100 0 66 52 52 52 Spillepengen Fastighets AB, 556107-5002 Malmö 100 25 Name/Reg. no. Capital Carrying

Studentkåren 6 Fastighets AB, 556730-3499 Malmö 100 204 Parent company Reg. office share % amount N Utvecklings AB Kranen, 556286-9999 Malmö 100 117 Medeon AB, 556564-5198 Malmö 40.0 4 67 Wihlborg A/S, Danmark, A/S 190 168 Köpenhamn 100 78 Dockan Exploatering AB, 556594-2645 Malmö 33.3 48 Wihlborgs Boplatsgatan 5 AB, 556675-2449 Malmö 100 0 52 Wihlborgs Borgeby AB, 556675-2639 Malmö 100 0 Wihlborgs Bronsdolken AB, 556232-5919 Malmö 100 4 Subsidiary Wihlborgs Cinder AB, 556518-5732 Malmö 100 6 Nyckeln 0328 SE, SE111 Great Britain 30,0 14 Wihlborgs Erik Menved 37 AB, 556704-3699 Malmö 100 156 PeWi Bostadsutveckl. HB1, 969687-5492 Helsingborg 50,0 0 Wihlborgs Fastigheter i Hbg AB, 556101-6295 Malmö 100 424 Ideon Center AB, 556239-0384 Lund 50,0 0 Wihlborgs Fastigheter i NVS AB, 556271-3924 Malmö 100 3 66 Wihlborgs Fisken 18 AB, 556675-2357 Malmö 100 0 1 The company is dormant. Wihlborgs Flintan 3 AB, 556675-2647 Malmö 100 0 Wihlborgs Flounderone AB, 556727-7909 Malmö 100 20 Wihlborgs Gallerian AB, 556704-3632 Malmö 100 163 Note 20 – OTHER LONG-TERM Wihlborgs Grynbodagatan AB, 556675-2597 Malmö 100 1 SECURITIES HOLDING Wihlborgs Gäddan 6 AB, 556704-3681 Malmö 100 8 Group Parent company Wihlborgs Havskryssaren AB, 556703-0613 Malmö 100 0 2008 2007 2008 2007 Wihlborgs Holding AB, 556701-2827 Malmö 100 0 Opening acquisition value 10 10 10 10 Wihlborgs Kirseberg AB, 556691-4874 Malmö 100 0 Acquisitions of the year 4 - 4 - Wihlborgs Kranen AB, 556704-6387 Malmö 100 0 14 10 14 10 Wihlborgs Lönngatan AB, 556704-3657 Malmö 100 9 Name/Reg. no. Capital Carrying Wihlborgs Mauritzborg AB, 556753-3483 Malmö 100 0 Group and parent company Reg. office share % amount Wihlborgs Motorseglaren AB, 556703-0605 Malmö 100 0 Sveland Sakförsäkr. AB 516406-0229 Hässleholm 5.4 14 Wihlborgs Måsen 17 AB, 556627-7835 Malmö 100 2

2008 Wihlborgs annual report Note 21 – OTHER LONG-TERM RECEIVABLES Note 26 – deferred tax liability

Group Parent company Group Parent company 2008 2007 2008 2007 2008 2007 2008 2007 Maturity date 1-5 years from Deferred tax has been calculated 32 30 - - balance sheet date on the basis of: Maturity date later than 5 years Loss carry-forwards -135 -114 -71 -1 2 3 - - from balance sheet date Difference between carrying amount 1,066 1,199 - - 34 33 0 0 and tax base in respect of properties Untaxed reserves 8 8 - - SEK 24 million (25) of the receivables refer to interest-bearing receivables. Net liability 939 1,093 -71 -1

Note 22 – accounts receivable Adjustment for deferred tax asset - - 71 1

Group 939 1,093 0 0 Age distribution – accounts receivable 2008 Accounts receivable that are neither overdue nor Total loss carry-forwards, which have been taken into account in calculating 7 written down deferred tax, are SEK 517m (411). SEK 326m (335) of the tax losses are blocked Accounts receivable that are due until 2012. The tax losses include a deficit in the Danish company of SEK 46m (21). 0-30 days 1 31-60 days 3 61-90 days 5 Note 27 – Other provisions >90 days 13 Refers largely to stamp duties that become payable only when a property is sold. Of which reserved (excluding VAT) -14 15 Note 28 – Liabilities to credit institutions In total, this year’s costs for realised and anticipated bad debts amount to 8. Group Parent company 2008 2007 2008 2007 Maturity up to 1 year from Note 23 – Prepaid costs and accrued income 1,405 383 1,400 - balance sheet date Group Parent company Maturity between 1 and 5 years 6,000 6,886 5,443 6,468 2008 2007 2008 2007 from balance sheet date Rental income 1 1 - - Maturity later than 5 year from 866 527 - - Anticipated dividends - - 124 270 balance sheet date

s Interest income 11 7 11 7 8,271 7,796 6,843 6,468 Miscellaneous 5 9 1 - The above amount includes an unused overdraft facility of SEK 5 million (15) for

o t e 17 17 136 277 the group and SEK 0 million (0) for the parent company. The credit limit granted for the overdraft for the group amounts to SEK 97 million (94) and SEK 75 million (75) for the parent company. NotE 24 – cash and bank balances In the balance sheet, the short-term part of the liabilities to credit institutions

N The Group’s cash and cash equivalents comprise cash assets and bank balances. according to the above table has been reduced by the unused long-term credit 68 The Group has unused overdraft facilities, which are not included in cash and promise. The long-term part of liabilities to credit institutions has been increased cash equivalents, of SEK 92m (79m). in the corresponding manner. The short-term part of loans run until December 2009. Note 25 – Equity NotE 29 – Derivative instruments Accumulated translation differences in the Group amount to SEK 69m (18m).

Group Parent company No. of registered shares at beginning of year and end of year 38,428,364 Allocation of undervalue over time 2008 2007 2008 2007 Maturity up to 1 year from 100 - 100 - No. of outstanding shares beginning of year 37,431,014 balance sheet date Buy-back of own shares during year -1,217,000 Maturity between 1 and 5 years 72 - 72 - from balance sheet date No. of registered shares at end of year 36,214,014 Maturity later than 5 year from 27 - 27 - All shares carry equal voting rights, one vote per share. Proposed dividend per balance sheet date share, SEK 6,50 (6,25). Nominal value per share, SEK 5 (5). Page 5 gives an 199 0 199 0 account of the group’s objectives, policy and methods for managing capital.

Wihlborgs annual report 2008 The undervalue is shown when the effects of the derivative result in a future net NotE 34 – ACQUISITION OF payment on the basis of current market criteria. Net payments during 2009 are shown as current liabilities whereas other net payments are shown as long-term INTERESTS IN GROUP COMPANIES liabilities. Discounting of the payment flows has taken in both cases. This year’s value change derivatives amount to SEK -214 million (15) all of which are un- According to the analyses made in connection with the acquisitions, the value of realised. Derivative instruments are valued continuously according to the true acquired assets and liabilities in acquired Group companies were as follows: value. The value change in interest derivatives is shown in the income statement on a separate line. The value change in currency derivatives is shown directly 2008 2007 against the conversion difference in equity since hedging is done against Properties 285 841 currency rate changes in international companies’ net assets. In Note 2 – Financial Long-term receivables, Group companies 3 - instruments and financial risk management – more detailed information is given on Wihlborgs’ derivative instruments and what risks they are designed to Financial fixed assets - 2 minimise. Current receivables - 5 Cash and bank balances 1 16 Note 30 – PREPAYMENTS AND ACCRUED INCOME Long-term liabilities, Group companies -120 -95 Other long-term liabilities - -202 Group Parent company Current liabilities -7 -18 2008 2007 2008 2007 Purchase price 162 549 Advance payment of rents 158 107 - - Addition of taking over vendor’s receivable claim 117 95 Accrued interest expenses 51 16 51 13 Purchase price 279 644 Add. costs of sold properties 63 62 0 1 Less liquid resources in companies that have been acquired -1 -16 Other 44 39 12 9 Affect on group’s liquid assets 278 628 316 224 63 23 Note 35 – SALE OF Note 31 – COMMITMENTS INTERESTS IN GROUP COMPANIES AND CONTINGENT LIABILITIES According to the analyses made in connection with the sales, the value of Group Parent company divested assets and liabilities in divested Group companies were as follows: Commitments 2008 2007 2008 2007 2008 2007 Property mortgages 8,972 8,631 - - Properties 269 335 Promissory notes - - 6,843 6,916 Long-term receivables Group companies - 3 8,972 8,631 6,843 6,916 Financial fixed assets - 21 Long-term liabilities, Group companies -120 -118 Contingent liabilities 20 20 20 20 Other long-term liabilities -2 -2 Short-term liabilities - -9 s Purchase price 147 230 Note 32 – ADJUSTED ITEMS THAT ARE NOT Adding the vendor’s receivable/liability that is taken over 120 115 o t e INCLUDED IN CASH FLOW ETC. Impact on consolidated cash and cash equity 267 345 Group Parent company 2008 2007 2008 2007 Change in value of investment properties 423 -1,043 - - NOTe 36 – RELATED-PARTY TRANSACTIONS N Depreciations of equipment 3 2 1 1 Erik Paulsson and his family and company have a controlling influence in Peab AB 69 426 -1,041 1 1 and Peab Industri AB. In 2008, Wihlborgs received income from lettings activities of SEK 9m from the Peab Group. Wihlborgs has paid SEK 290m to the Peab Group for contract work. At the year end Wihlborgs has receivables from Peab amounting Note 33 – CHANGE IN OPERATING CAPITAL to SEK 3m and liabilities amounting to SEK 43m. All transactions were completed on market terms. Group Parent company 2008 2007 2008 2007 Change according to balance sheet 1,212 346 1,637 986 Operating capital in -7 -13 - - acquired Group company Operating capital in - 9 - - divested Group company Currency effect -2 - - - Cash and bank balances -7 61 13 57 Value change derivatives -100 - -100 - Change in income tax liability 3 4 - - Change in assets and liabilities in respect of interest income, dividends -32 -3 -180 -1,051 and interest expenses 1,067 404 1,370 -8

2008 Wihlborgs annual report annual accounts signed

Balance sheets and profit and loss accounts are subject to confirmation at the Annual General Meeting on 23 April 2009.

• The annual accounts have been drawn up in accordance with generally accepted accounting principles. • The annual accounts give a true picture of the company’s status and result. • The administration report provides a true account of the growth in the company’s activities, position and result as well as describing significant risks and uncertainty factors that the company faces. • The consolidated accounts have been drawn up in accordance with Inter- national Financial Reporting Standards, IFRS, as adopted by the EU. • The consolidated accounts give a true picture of the company’s status and result. • The administration report for the group provides a true account of the growth in the group’s activities, position and result as well as describing significant risks and uncertainty factors that the companies in the group face. t h e f o ng i Malmö, 12 March 2009 u a l r e p o r t gn nn

Erik Paulsson Kerstin Fredriksson Anders Jarl s i a 70 Chairman Deputy Chairman Chief Executive Officer

Sara Karlsson Helen Olausson Tommy Qvarfort

Johan Qviberg

We presented our audit report on 16 March 2009.

Deloitte AB

Torbjörn Svensson Authorised Public Accountant

Wihlborgs annual report 2008 audit report ■ To the annual meeting of the shareholders of Wihlborgs Fastigheter AB (publ) Corporate identity number 556367-0230 We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Wihlborgs Fastigheter AB (publ) for the financial year 2008. The company’s annual accounts and consolidated accounts are included in the printed version of this document on pages 50-70. The board of directors and the managing director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards IFRS as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstate- ment. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director . We also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below. audit report The annual accounts have been prepared in accordance with the Annual Accounts Act and 71 give a true and fair view of the company’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards IFRS as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group’s financial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.

We recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the statutory administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Malmö, 16 March 2009 Deloitte AB

Torbjörn Svensson Authorized Public Accountant

2008 Wihlborgs annual report Corporate Gover- ance Report

Wihlborgs Fastigheter AB implements the Swedish Code of Corporate Governance. This corporate governance report does not form part of the formal financial statements but constitutes a separate report. Wihlborgs’ Corporate Governance Report has not been examined by the company’s auditors.

Corporate governance The shareholders influence the company’s governance by participating in and exercising their voting rights at the Annual General Meeting, which is Wihlborgs’ highest decision-making body. All shares carry the same voting rights, i.e. a shareholder’s voting rights are proportionate to his share of the company’s share capital. The management of and responsibility for the Wihlborgs Group is divided between the Board of Directors and Chief Executive Officer, in accordance with the Swedish c e Companies Act, other laws and regulations, the listing agreement with the Stock- n

a holm Stock Exchange, the Swedish Corporate Governance Code, and the company’s n Articles of Association and internal control instruments, such as the rules of procedure for the Board of Directors and the instructions to the Chief Executive Officer. o v e r

g The Swedish Corporate Governance Code The chief purpose of the Code is to contribute to improving standards of corporate governance in Swedish companies in order to ensure that they meet the owners’ return requirements for their invested capital. Any departures from the rules contained in the Code must be reported and justified according to the principle “comply or explain”. The reasons for each departure much be clearly explained. c o r p or r e p a t o e r t Wihlborgs has departed from the rules in the following respects: • No separate audit committee has been appointed. Instead, all members of the 72 Board except the CEO have performed the tasks of the audit committee. • No separate remuneration committee has been appointed. Instead, all members of the Board except the CEO have performed the tasks of the remuneration- committee. No member of the company’s management has been present when- these issues have been discussed.

The board’s justification for not constituting any auditing or compensation committee is that the company’s size does not warrant this. The issues can be addressed in connection with a normal meeting. Wihlborgs have an interest adviser whose task it is to monitor interest development and suggest measures to the board. The interest adviser’s responsibilities and duties are not regulated by the board’s rules of procedure but the duties are regulated by the company’s finance policy.

Wihlborgs annual report 2008 THE BOARD

Erik Paulsson Kerstin Fredriksson Anders Jarl Chairman of the Board Deputy Chairman Director Båstad, Born 1942 Trelleborg, Born 1942 Malmö, Born 1956 Elected in 2004 Elected 2004 Elected 2004

Other Board assignments: Other Board assignments: Director of Main occupation: Chairman of Backahill AB, Diös Fastigheter Regionfullmäktige Skåne, Regionala CEO of Wihlborgs. AB, Fabege AB and SkiStar AB. Director of utvecklingsnämnden Skåne, Kommun- Brinova Fastigheter AB, Investment AB Öre- förbundet Skåne, Sydvatten AB and Other Board assignments: – sund and Nolato AB. SYSAV AB. Shareholdings in Wihlborgs: 172,045 c e Shareholdings in Wihlborgs: 42,400 sha- Shareholdings in Wihlborgs: shares with family and via company. n res with family and via company. Erik 200 shares. a Paulsson also owns shares via Brinova Fast- n igheter AB. o v e r g c o r p or r e p a t o e r t

Sara Karlsson Helen Olausson Tommy Qvarfort Johan Qviberg Director Director Director Director Båstad, Born 1969 Östersund, Born 1968 Malmö, Born 1944 Stockholm, Born 1981 Elected 2007 Elected 2007 Elected 2006 Elected 2004

Main occupation: Main occupation: Main occupation: Main occupation: Entrepreneur Båstad Företagsby CEO of Biesse Baenie AB. CEO of Abitare Fastighetsutveckling. Equity sales Öhman

Other Board assignments: Other Board assignments: Other Board assignments: Other Board assignments: Director of Peab Industri AB, Topeja Chairman of Fabös and Chairman of APQ El AB. Director of Djurgården Fotboll Holding AB, Scandinavian Resort AB and Norrvidden Fastigheter AB, BNAB Båstads Näringsliv AB. Director of Fabege AB, Klövern AB Shareholdings in Wihlborgs: Shareholdings in Wihlborgs: and Lantmäteriet. 50,000 shares. 290,000 shares. Shareholdings in Wihlborgs: 10,000 shares. Shareholdings in Wihlborgs: -

2008 Wihlborgs annual report Articles of Association Wihlborgs’ current Articles of Association were adopted at the Annual General Meeting held on 26 April 2006. The company’s business is to acquire, manage, improve and sell properties primarily in the Öresund region and to conduct such other activities as are compatible therewith. The Board of Directors shall be based in Malmö. The articles of association can be found on page 81.

2008 Annual General Meeting Wihlborgs’ AGM took place on 23 April 2008. 41.6 per cent of the number of votes (325 shareholders) were represented at the meeting. The minutes of the Annual General Meeting is available on the Wihlborgs website, www.wihlborgs.se. Decisions taken by the meeting included the following:

Election of Directors and auditors – The Board should consist of seven Directors. Kerstin Fredriksson, Anders Jarl, Sara Karlsson, Helen Olausson, Erik Paulsson, Tommy Qvarfort and Johan Qviberg were re-elected to the Board. The registered public accounting firm of Deloitte was re-elected as auditors, with authorised public accountant Torbjörn Svensson as auditor in charge, until the 2011 annual general meeting.

c e Nomination Committee – It was resolved that the Nomination Committee should con- n sist of representatives of the three largest shareholders of the company at the end of a

n the third quarter of 2008, plus one representative of the smaller shareholders, as represented by the Swedish Shareholders’ Association (Aktiespararna). The Nomi- nation Committee also decides if the Chairman of the Board shall be included in o v e r the Committee. The representative of the largest shareholder shall be made chair- g man of the Nomination Committee unless otherwise stated. No fees are paid to the members of the committee, but the company is responsible for adequate costs which arise as a result of the committees assignment.

Acquisition and transfer of shares owned by the company – The AGM resolved to authorise the Board, during the period up to the next AGM, to buy back and transfer c o r p or r e p a t o e r t Wihlborgs shares up to a maximum of ten per cent of all outstanding shares.

74 New issue – The AGM resolved to authorise the Board, during the period up to the next AGM, to decide on the issue of new shares up to a maximum of ten per cent of all outstanding shares.

The Nomination Committee The Swedish Corporate Governance Code states that the appointment of the Board of Directors and auditors should be prepared through a structured and transparent process controlled by the owners which provides opportunities for all shareholders to express their views on and make proposals on these issues and which establishes a good foundation for well considered decisions. The nomination committee is the AGM’s body for preparing decisions relating to appointments. Wihlborgs’ Nomination Committee has therefore been drawing up proposals for chairman of the AGM, Chairman of the Board, Directors and Directors’ fees, and auditors and auditors’ fees. In accordance with the AGM’s decision, the names of the candidates proposed by the Nomination Committee were announced on 20 January 2009. Bearing in mind the changes in the ownership of Wihlborgs during the fourth quarter of 2008, the composition of the election committee was changed since it was first appointed in October 2008. The Nomination Committee consists of Anders Sil- verbåge from Brinova Fastigheter AB, Jan Andersson from Robur, Peter Lavesson from Investment AB Öresund and Leif Franzon from the Swedish Shareholders’ Association (Aktiespararna). The members representing the three largest owners in

Wihlborgs annual report 2008 GROUP MANAGEMENT

Anders Jarl Thomas Bråhagen Christer Johansson Iréne Johansson Chief Executive Officer Property Director Finance Director Information manager Malmö, Born 1956 Malmö, Born 1955 Svedala, Born 1948 Malmö, Born 1953 Employed by Wihlborgs since 2001. Employed by Wihlborgs since 1990. Employed by Wihlborgs since 1996. Employed by Wihlborgs since 1992.

Shareholdings in Wihlborgs: Shareholdings in Wihlborgs: Shareholdings in Wihlborgs: Shareholdings in Wihlborgs: 172,045 own shares and via company. 9,971 shares with family and via compa- 18,837 own shares and 9,428 own shares and ny. via company. via company. c e n a n

AUDITORS o v e r g

Deloitte AB

Chief Auditor Torbjörn Svensson, Malmö, born 1953 Authorised Public Accountant Chief auditor of Wihlborgs since 2004, c o r p or r e p a t o e r t previously chief auditor of Fabege since 2001.

Catharina Lachmann 75 Executive Assistant to the CEO Svedala, Born 1955 Empoyed in Wihlborgs since 1985.

Shareholdings in Wihlborgs: 9,414 own shares and via company.

the Nomination Committee together represented 20.3 per cent of the votes of Wihl- borgs. Anders Silverbåge was appointed as chairman of the Nomination Committee. The Nomination Committee has held four minutes meetings. The Nomination Committee has discussed the size and composition of the Board of Directors in respect of industry experience, expertise and other criteria. Nomination Commit- tee has also discussed the issue of the Directors’ independence. At the AGM 23 April 2009 the election committee proposes a re-election of Erik Paulsson, Kerstin Fredriksson, Anders Jarl, Sara Karlsson, Helen Olausson, Tommy Qvarfort and Johan Qviberg. Arne Bernroth is proposed as new Board Member and is independent by the company and major owners. The election committee also proposes re-election of Erik Paulsson as Chairman of the Board of Directors. As regards fees for the Board of Directors, the Election Committee proposes SEK 940,000 to be paid to the Board as the total amount of fees distributed as follows: SEK 220,000 to the Chairman of the Board and SEK 120,000 to other Directors with the exception of the CEO, Anders Jarl.

2008 Wihlborgs annual report The Board of Directors The task of the Board of Directors is to manage the company’s business on behalf of the owners in a way that assures the owners’ interest in strong long-term return on capital in the best possible way. Under Wihlborgs’ Articles of Association, the Board of Directors must consist of at least four and no more than eight Directors. Following the AGM in April 2008, Erik Paulsson was appointed as Chairman of the Board and Kerstin Fredriksson as Deputy Chairman. The company’s Finance Director, Christer Johansson, has served as the Board’s secretary. Wihlborgs’ Board of Directors includes members that have skills and experience in fields that enable them to support, monitor and control the business of a leading property company in Sweden. The Directors have in-depth knowledge of property, the property market, finance and business development. The Board of directors comply with the code and the Stockholm Stock Exchange’s listing requirement that a maximum of one Board member may work operatively in current activities. The Chief Executive Office Anders Jarl is a member of the Board. The majority of the Board members are independent of relations with the company and corporate management. In 2008, the Board held 10 meetings, including constituent and per capsulam meetings. Out of the 10 meetings, seven have been ordinary Board meetings. The Board’s work began with issues concerning the annual accounts and dividend as well as an assessment of the Board’s work and procedures. During the spring of 2008 the c e

n work concentrated on property purchases and projects. Preparations associated with a the board’s tasks prior to the Annual General Meeting concerned the proposals for the n re-purchase of own shares and authorization of new share issue. During the autumn, the company’s financial policy and interest review combined with different derivative

o v e r products were commented on. The company’s future strategies prior to 2009 and 2010, g budget and property acquisitions also dominated the Board’s work. During the autumn the Board also discussed the criteria concerning the repurchase of own shares.

Directors, independent, number of meetings and attendance Independent Independent by Board meetings/ by company major owners Attendance c o r p or r e p a t o e r t Erik Paulsson, Chairman no no 10 of 10 Kerstin Fredriksson, 76 Deputy Chairman yes yes 10 of 10 Anders Jarl no yes 10 of 10 Sara Karlsson yes yes 10 of 10 Helen Olausson yes yes 10 of 10 Tommy Qvarfort yes yes 10 of 9 Johan Qviberg yes yes 10 of 10 4 of 4 Sten K Johnson yes yes (resigned at the AGM)

Rules of procedure and instructions The Board of Wihlborgs operates on the basis of a set of procedural rules, which include instructions relating to the division of labour and financial reports. The rules of procedure, which constitute a supplement to the regulations contained in the Swedish Compa- nies Act and Wihlborgs’ Articles of Association, are reviewed annually. Under the rules, the Board is responsible for ensuring that the CEO meets his obligations. The CEO’s performance is assessed annually in relation to the defined long-term and short-term objectives. Another responsibility is to continuously assess Wihlborgs’ handling procedures and administrative guidelines and investments of the company’s assets. The Board is responsible for setting and monitoring compliance with targets, key policies and strategic plans for the company and for ensuring that these are revised and updated subse- quent to receiving a report from the CEO. Six ordinary Board meetings should be held each calendar year, in addition to the constituent meeting. At the meetings the Directors transact business relating to financial

Wihlborgs annual report 2008 and economic reports, sales and investments, current market issues and staff issues. Extraordinary meetings may be convened for the purpose of discussing and deciding on issues that cannot be postponed until the next ordinary Board meeting. Under the procedural rules, it is the duty of the Chairman to monitor Wihlborgs’ performance through contacts with the CEO and to ensure that the Directors receive the information they require via the CEO. The Chairman is also required to consult with the CEO on strategic issues and ensure that the matters under consideration are not handled in a way that violates the provisions of the Swedish Companies Act, the company’s Articles of Associa- tion or the Swedish Corporate Governance Code.

Group management The Chief Executive Officer – is responsible for the day-to-day management of the company and for managing the company’s activities in accordance with the guidelines and instructions laid down by the Board. The rules of procedure for Wihlborgs’ Board of Directors includes a set of instructions for the CEO, who is responsible for ensuring that the Board receives the information it requires for its decisions before each Board meeting and is kept up to date in between meetings, and that the financial statements are presented in a way that allows the Board to make a well-informed assessment of the information contained therein. There is also a separate reporting instruction specifying the timetables.

Group management consists of: c e n

Anders Jarl, CEO a Christer Johansson, Finance Director n Thomas Bråhagen, Property Director Iréne Johansson, Information Manager o v e r

Catharina Lachmann, Executive Assistant to the CEO g

Principles for terms of employment of the CEO and Group management Under the Corporate Governance Code, the Board is required to propose principles for the compensation and other employment terms of Group management. The Board of Wihlborgs proposes that the compensation and other terms of employment should be

competitive and based on market terms. All members of Group management receive a c o r p or r e p a t o e r t fixed compensation. The criteria for other benefits where they arise shall comprise a limited proportion of the payments and are primarily the use of company cars. 77 Wihlborgs has a profit-sharing foundation that covers all employees except the CEO. Allocations to the foundation are based on return on equity and are subject to a ceiling of one base amount per year and employee. The retirement age is 65 years for all employees of Group management. Expenses relating to the Chief Executive Officer’s pension comprise a premium of 35 per cent of the CEO’s pensionable annual salary during his period of employment. For other members of Group management the ITP occupational pension plan or an equivalent plan applies. Termination salary and severance pay combined must not exceed 24 months. Severance pay should be offset by other income. All Board Directors except the CEO decide on the principles for compensation and terms of employment of Group management and on the CEO’s compensation and terms of employment. The principles for the terms of employment remain unchanged.

Auditing At the 2008 annual general meeting, Deloitte AB was re-elected together with Torbjörn Svensson as Wihlborgs’ auditors for a period of three years. The next election will therefore be in connection with the 2011 annual general meeting. Torbjörn Svensson has chief responsibility for the audit assignment in Wihlborgs. He has no other assignments for companies that are closely related to Wihlborgs’ major owners or the CEO. In addition to his audit assignment for Wihlborgs, Torbjörn Svensson’s other major audit assignments are: Malmö Aviation, Flextronics, Ballingslöv, Mellby Gård, Thule and Skånemejerier.

2008 Wihlborgs annual report Torbjörn Svensson personally attends the Board meeting convened for the purpose of the discussing the company’s year-end financial statements and submits a report on his final examination of the company’s accounts. He also submits information on ongoing auditing work to the Board in its capacity as audit committee. Information about fees paid to the auditors is provided in Note 1 on page 63.

Internal control According to the Companies Act and the Swedish code for company control, the board is responsible for internal control. The board shall issue a report annually of how the internal control of financial reporting is organised to the extent it concerns the financial reporting. The report is drawn up on the basis of the guidance produced by the Confederation of Swedish Enterprise and FAR SRS. This report does not form part of the formal annual accounts documentation and has not been the subject of checking by the company’s auditors. Wihlborgs applies COSO, Internal Control – Integrated Framework. This is an internationally recognised and widely-accepted framework for internal control used to describe the company’s control structure. COSO describes the control that is divided into five components – control environment, risk assessment, control activities, information and communication, and monitoring.

The control environment – is of great significance to the organisation and forms thebasis for good internal control. In its rules of procedure the board has clarified decision delegation to the management for financial reporting. The organisational structure at Wihlborgs faci- c e litates effective internal control. The company’s organisation in its administrative areas with n a an administrative manager as its head has a defined responsibility with authorities. This is n described in an instruction for signing lease agreements, authorisations and projects, and a number of policies. Group reporting for Wihlborgs’ approximately 129 subsidiaries is

o v e r standardised. Internal auditing is reconciled with external auditing on each reporting g occasion. According to Wihlborgs staff policy, employees who work on economic issues undergo individual training programmes to ensure competence within the area.

Risk assessment – Wihlborgs undertakes continuous risk assessment associated with financial reporting. A risk analysis shows that the internal control is particularly significant with regard to procedures for lease debiting including supplementary debiting,

c o r p or r e p a t o e r t the purchase and sale of properties, both private and in companies, the IT function, property valuation, project activities and risks of impropriety. 78 Control activities – are designed to create methods for the company when dealing with risks. The intention is that the activities shall prevent, identify and correct the errors that can arise. The activities shall secure income and assets, check the correctness and reliability of the financial reports but also ensure that stipulated regulatory systems are complied with.

Information and communication – The way in which financial reporting is communicated is shown in the company’s instructions for reporting. Information to lenders, investors and suppliers is based on the respective interested party’s particular requirements. The stock exchange’s regulations for disseminating information and report-ing are particularly important. The information department is responsible for external information. The company’s information policy includes describing how financial reporting shall be done. The board receives information on risks of errors in the financial reporting and the internal control from auditors in connection with the full-year accounts and interim audit.

Monitoring – Continuous monitoring and evaluation are performed to guarantee the quality of the control system. Continuous monitoring is done on an area basis and any shortcomings that have arisen in the internal control are rectified. The audit submits its findings regarding the company’s internal control to the board at least twice a year.

Malmö, 12 March 2009 The Board

Wihlborgs annual report 2008 Erik Paulsson, Chairman of the Board and CEO Anders Jarl c e n a n o v e r g c o r p or r e p a t o e r t

2008 Wihlborgs annual report Five-year summary Proforma3 Financial 2008 2007 2006 2005 2004 Return on equity, % -1,2 27,9 26,6 18,2 15,5 Return on total capital, % 2,8 14,0 12,5 10,1 8,5 Equity/assets ratio, % 29,4 32,6 32,7 34,8 29,6 Interest coverage ratio, times 2,2 2,7 3,3 2,9 2,5 Leverage properties, % 60,7 58,2 59,2 55,6 66,8 Debt/equity ratio, times 2,0 1,7 1,8 1,5 2,1

Share-related1 Earnings per share before tax, SEK -5,03 39,21 27,69 17,03 12,06 Earnings per share, SEK -1,32 29,08 22,12 12,33 8,68 Operating earnings per share before tax, SEK 12,09 11,59 11,16 8,34 7,30 Operating earnings per share, SEK 8,91 8,35 8,04 6,01 5,25 Equity per share I, SEK 110,84 116,29 92,30 73,96 60,14 Equity per share II, SEK 126,91 135,07 104,58 84,55 68,25 Market value per share, SEK 100,00 115,75 142,75 96,00 P/E, ratio, times neg. 4,0 6,5 7,8 P/E, ratio current management, times 11,2 13,9 17,8 16,0 Cash flow from operations before change in working 11,99 11,36 10,93 8,24 6,04 capital per share, SEK Dividend per share, SEK2 6,50 6,25 5,50 3,50 - No. of shares at year-end, ‘000 36 214 37 431 38 428 38 428 38 428 Average no. of shares, ‘000 37 208 38 304 38 428 38 125 38 428

Property-related4 No. of properties 247 245 219 197 190 Carrying amount of properties, SEKm 13 620 13 397 10 888 7 890 7 149 Yield, % 6,5 6,0 6,4 6,6 6,6 Lettable area, m2 1 257 410 1 241 445 1 159 852 994 693 963 331 Rental income, SEK/m2 968 914 851 761 736 Net operating income, SEK/m2 699 650 597 526 490 Economic occupancy, % 93 93 92 90 89 Surplus ratio, % 72 71 70 69 67

i v e - y e a r s u m m a r y f Employees No. of employees at year-end 81 84 77 68 71 Average no. of employees 82 82 78 71 71

80 1) There are no dilution effects of potential ordinary shares to be taken into account in calculating key ratios. A recalculation was made for the 2:1 share split that was implemented in May 2006. 2) Proposed dividend (2008). 3) Proforma figures for 2004 are based on the property portfolio as at 31 March 2005. As a consequence, rental income and property costs are for the most part based on the true outcome. Value changes in the property stock have been estimated on the basis of external evaluations. The interest costs are estimated on the basis of the interest due structure on 31 March 2005 80 which was assumed to be constant during the proforma period. The annual interest cost is based on the current market interest for the respective year. Tax at 28% is deducted from the result. 4) Calculated on the property portfolio as per 31 December respective year.

DEFINITIONS FINANCIAL SHARE-RELATED Equity per share II PROPERTY-RELATED Return on equity Earnings per share before tax Calculated as the equity per share I but with No. of properties Profit as a percentage of average sharehol- Profit before tax divided by average number the tax rate for deferred tax of 10 per cent Total number of properties owned by ders’ equity. of outstanding shares. instead of 26.3 (28) per cent. Wihlborgs as at year-end.

Return on total capital Earnings per share P/E, ratio, times Carrying amount of properties Profit before tax plus interest expenses as a Profit divided by average number of out- The market value per share divided by the Carrying amount of the Group’s property percentage of average balance sheet total. standing shares. profit per share. portfolio at year-end. Equity/assets ratio Yield Operating earnings per share before P/E, ratio current management Shareholders’ equity as a percentage of The market value per share divided by the Net operating income as a percentage of the balance sheet total. tax carrying amount of the properties at year-end. Profit after financial items and reversal of profit from current management per share. Interest coverage ratio gains/losses from the sale of properties Cash flow from operations before Lettable area Profit after financial items and reversal of inte- and changes in value, divided by average change in working capital per share Total area that is available to let. rest expenses, divided by interest expenses. number of outstanding shares. Cash flow from operations before change Rental income per square metre Leverage properties Operating earnings per share in working capital in relation to average number of shares. Annualised rental income divided by let- Interest-bearing liabilities as a percentage of Profit after financial items and reversal of table area. the carrying amount of the properties. gains/losses from the sale of properties Dividend per share and changes in value and 26.3 (28) per Debt/equity ratio Refers to proposed dividend for the last Net operating income per square metre Interest-bearing liabilities divided by sharehol- cent tax, divided by average number of Net operating income divided by lettable area. outstanding shares. financial year, to approved dividends for ders’ equity. previous years. Financial occupancy rate Equity per share I Rental income as a percentage of rental value. The parent company’s shareholders’ share of the equity at the end of year in relation Surplus ratio to the number of shares at the year end. Net operating income as a percentage of rental income.

Wihlborgs annual report 2008 Invitation to the Annual General Meeting articles of association ■ Articles of Association of Wihlborgs Fastigheter AB (publ), Corporate Identity number: 556367-0230 The Annual General Meeting of Wihlborgs Fastigheter AB (publ) will take place at 17 p.m. on Thursday 23 April 2009 at Slagthuset, Jörgen Kocksgatan 7A, Malmö. Shareholders wishing to attend the meeting must be included in the register of shareholders maintained by Euroclear Sweden AB (former VPC AB) by 17 April 2009 at the latest, and must also § 1 Registered name of the Company is Wihlborgs the Managing Director from personal liability. send notification of their participation by letter to Wihlborgs Fastigheter AB, Box 97, 201 Fastigheter AB, which is a public company (publ). d) the record date for the payment of dividends. 20 Malmö, or by e-mail to [email protected] or phone on § 2 The object of the Company’s operations is to 8. Resolution of the number of members of the +46 40 690 57 70 or fax on +46 40 23 45 52. acquire, manage, develop and sell properties, Board and, where applicable, the number of Notification must reach Wihlborgs by 4 p.m. on Friday 17 April 200. The notification primarily in the Öresund region, and conduct auditors and deputy auditors. must state the shareholders’ name, civic registration number/corporate identity number, associated operations. 9. Determination of the fees to be paid to the address, telephone number and number of shares owned. Shareholder with nominee-re- Board members and, where applicable, the auditors. gistered shares in order to participate must re-register their shares in their own name with § 3 The registered office of the Board of Directors 10. Election of the Board members. Euroclear Sweden AB. A request for such re-registration must be made in good time before shall be Malmö, Sweden. 11. When required, election of the auditors and Friday 17 April 2008. § 4 The Company’s share capital shall amount to not deputy auditors. less than SEK 155,000,000 kronor and not more 12. Election of the Nomination committee. than SEK 620,000,000 kronor. 13. Other business that must be addressed by the § 5 The number of share shall not be less than Meeting in accordance with the Annual 15,500,000 and not more than 62,000,000. Accounts Act or the Articles of Association. § 10 Notice of a General Meeting of Shareholders shall § 6 The Board of Directors shall consist of not fewer be made in the form of an advertisement in the than four and not more than eight members. Wihlborgs is the leading property company in the Öresund Official Gazette (Post- och Inrikes Tidningar) and § 7 Of the Company’s auditors, at least the auditor and region. The properties’ book value totals SEK 13.6 billion with a in Svenska Dagbladet and in Sydsvenska Dagbladet the deputy auditor must be Authorised Public or in another daily newspaper published in Skåne. lettable area of 1.3 million sq.m. and an annual rental value of Accountants. Instead of an auditor, the Annual If publication of Svenska Dagbladet ceases, notifica- n i n g

invitation the balance sheet adopted by the Meeting.

ÖMÄ LJ RK I T c) the discharge of the members of the Board and M Production: Wihlborgs in collaboration with Pennan AB, Lund 2009.

341 T 115 R K Y C K S A Photographs: Lars Strandberg, Joachim Karlsson, Johan Windh, Marcus Carlsson, Ola Hansson, Stefan Larsson och Martin Palvén. Print: Markaryds Grafiska AB.