VASAKRONAN AB Investor Presentation – 30 June 2020 DISCLAIMER

IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING.

The following applies to the presentation materials contained in this document, and you are therefore advised to read this carefully before reading, accessing or making any other use of the presentation materials. In accessing the presentation, you agree to be bound by the following terms and conditions, including any modifications to them any time you receive any information from us as a result of such access. This presentation is an advertisement for the purposes of Directive 2003/71/EC (as amended) and not a prospectus, listing particulars or offering memorandum.

These materials have been prepared by and are the sole responsibility of Vasakronan AB (publ) (the “Company”) and have not been verified, approved or endorsed by any lead manager, bookrunner or underwriter retained by the Company.

These materials are provided for information purposes only and do not constitute, or form part of, and should not be construed as, any offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of, or any solicitation of any offer to underwrite, subscribe for or otherwise acquire or dispose of, any debt or other securities of the Company (“securities”) and are not intended to provide the basis for any credit or any other third party evaluation of securities. If any such offer or invitation is made, it will be done so pursuant to separate and distinct documentation in the form of a prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made solely on the basis of such prospectus and not these materials. No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Company.

These materials should not be considered as a recommendation that any investor should subscribe for or purchase any securities. Any person who subsequently acquires securities must rely solely on the final prospectus published by the Company in connection with such securities, on the basis of which alone purchases of or subscription for such securities should be made. In particular, investors should pay special attention to any sections of the final prospectus describing any risk factors. The merits or suitability of any securities or any transaction described in these materials to a particular person’s situation should be independently determined by such person. These materials offer no investment, financial, legal, tax or any other type of advice to, and the Company has no fiduciary duties towards, any recipients and therefore any such determination should involve, inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities or such transaction.

These materials may contain certain statements that constitute projections and forward looking statements. Such forward-looking statements may include, without limitation, statements relating to the Company’s business strategies, trends in its business, competition and competitive advantage, regulatory changes, and restructuring plans. Words such as believes, expects, projects, anticipates, seeks, estimates, intends, plans or similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Any such forward-looking statements involve known and unknown risks, uncertainties and other factors, both general and specific, which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Investors may get back less than they invested. The Company gives no assurance that any favourable scenarios described are likely to happen, that it is possible to trade on the terms described herein or that any potential returns illustrated can be achieved. Further, any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. A number of important factors could cause actual results, performance or achievements to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward- looking statements. Any such forward-looking statements in these materials will speak only as at the date of these materials. The Company does not intend to update these forward-looking statements except as may be required by applicable securities laws and assumes no obligation to update or provide any additional information in relation to such forward-looking statements.

The Company makes no representation nor gives any warranty as to the results to be obtained from any investment, strategy or transaction, nor as to whether any strategy, security or transaction discussed herein may be suitable for recipients’ financial needs, circumstances or requirements. Recipients must make their own assessment of such strategies, securities and/or potential transactions detailed herein, using such professional advisers as they may require. No liability is accepted for any direct or consequential losses arising from any action taken in connection with or reliance on the information contained in these materials even where advised of the possibility of such losses.

These materials are confidential, are being made available to selected recipients only and are solely for the information of such recipients. These materials must not be reproduced (in whole or in part), redistributed or passed on to any other person or published, in whole or in part, for any purpose without the prior written consent of the Company. The information contained in this presentation has not been subject to any independent audit or review.

These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials (a) are not intended for distribution and may not be distributed in the United States or to U.S. persons (as defined in Regulation S) under the United States Securities Act of 1933, as amended and (b) are for distribution in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order (“Relevant Persons”). The presentation is directed only at relevant persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This presentation may only be communicated to persons in the UK in circumstances where section 21(1) of the Financial Services and Markets Act 2000 does not apply to the Company. These materials are not intended for Retail Clients as defined in Directive 2014/65/EU on markets in financial instruments (MiFID II) and should not be passed on to any such persons.

2 AGENDA

1. Vasakronan Overview 4 2. Business Description 10 3. Swedish Real Estate Market Overview 19 4. Financials 24 5. Funding 30 6. Appendix 36

3 Byt ut bild

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

Contracted Rent by Property Type • Largest Nordic real estate company Offices, 74%

Consumer durables, 12% • Modern and high quality portfolio Garage, 3%

Restaurants, 3% in prime locations

Residental, 1%

Consumables, 1% • Strong and committed long-term Hotels, 1% owners Other, 5%

Contracted Rent by Geographic Market • Market value EUR 15 bn Uppsala Stockholm, 64% Stockholm • Total area (thousand) 2,330 sqm Gothenburg, 18 % Gothenburg Malmö. 10% • Contracted rent EUR 689 m

Uppsala, 8 % • Number of properties 174

Malmö • Number of employees 303

5 As of 30 June 2020. FX-rate EURSEK 10,48 LARGEST REAL ESTATE COMPANY IN THE NORDICS Investment property value, EUR bn

EUR EUR bn 15 14

6 12 11

9 9 4 8 7 6 5 5 5 5 5 2 4

Source: Q4 report of each of the companies above for the year 2019. As of 31 December 2019. FX-rate EURSEK 10.48 6 TIMELINE & KEY EVENTS Consistent growth over a period of two decades. Focus on markets with high growth and liquidity

Continously improved quality in the portfolio through transactions and project development amounting to EUR 0.2-0.4 bn per annum

bn CAGR 2008-2019: 9.3 % 10

8 14.9 13.2 6 12.0

Market value EUR EUR value Market 11.0 9.8 8.7 4 7.8 8.0 8.3 7.1 6.8 7.3 2 1.9 0 1998 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

AP Fastigheter acquires Issues the AP Divestment of a portfolio of Rating assigned by Vasakronan EUR 4 bn world’s first Fastigheter residential properties for Moody’s –A3 Corporate established EUR 0,7 bn Carbon neutral operations green bond by the Issues the world’s first Signs Sweden´s first Green AP-funds Certified according to ISO 14001 green CP lease agreement 7 As of 31 December 2019. FX-rate EURSEK 10,48 THE AP-FUNDS’ ROLE IN THE SWEDISH PENSION SYSTEM Vasakronan is the Swedish National Pension Funds´ main exposure to the Nordic office market

PARLIAMENT

SWEDISH NATIONAL EXTERNAL AUDITORS MINISTRY OF FINANCE PENSION FUND LAW

The First Swedish The Second Swedish The Third Swedish The Fourth Swedish National Pension Fund National Pension Fund National Pension Fund National Pension Fund 25 % 25 % 25 % 25 %

VASAKRONAN HOLDING

VASAKRONAN

COMMENTS

• AP-funds are closed-end buffer-funds and part of the Swedish national income pension system • All AP-funds are independent of the government. The funds´ operations are regulated by the Swedish National Pension Funds Act • The AP-funds support Vasakronan with a credit commitment of EUR 1.7 bn and CoC-clause in all funding

8 ASSIGNED A3 (STABLE) RATING BY MOODY’S

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

1 2 3 4

Substantial amount of 25% of rental revenues Largest real estate liquidity supported by a Long-term Government stem from creditworthy company in Sweden with credit facility from the related owners (AP 1-4) government and public dominant position in owners amounting to sector tenants prime office locations EUR 1.7 bn

5 6 7

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

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

GROWTH OFFICES AND MARKETS CITY RETAIL

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

ACTIVE TRANSACTIONS AND PRIME LOCATION ASSET MANAGEMENT PROJECT DEVELOPMENT

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

11 A SUSTAINABLE BUSINESS MODEL

MAGASIN X, SWEDEN´S LARGEST WOODEN OFFICE BUILDING COMMENTS • The energy consumption has been more than halved since 2009 • Renewable or climate-neutral energy have reduced carbon dioxide emissions in Scope 1, Scope 2 and emissions from air travel with approximately 99 percent between 2006-2019 • As at 30 June, 2020, 85 percent of the portfolio have environmental certification. The certification system mostly used is LEED and 73 percent of the portfolio are certified according to LEED on a Gold or Platinum level • The target is to have a 100 percent green asset portfolio • In November 2013, Vasakronan was proud to be the first company in the world to issue green bonds

CO2 EMISSIONS GRESB, Global Real Estate Sustainability Benchmark 2019 30 000 -99% 25 000

20 000 2 15 000

10 000 TonnesCO 5 000

2012 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019

12 As of 31 December 2019 MODERN AND HIGH QUALITY PORTFOLIO IN PRIME LOCATIONS

Birger Jarlsgatan, Stockholm CBD Läppstiftet, Gothenburg CBD

Aura, Malmo Kista Science Tower, Stockholm Kista Science City 13 DIVERSIFIED PUBLIC AND MULTI TENANT BASE

CONTRACTED RENT BY SECTOR, VASAKRONAN´S TEN LARGEST TENANTS % OF PROPERTY PORTFOLIO TENANT TYPE SHARE IN %

Swedish Police Authority Public 3% Public sector, 24% Ericsson Private 3% Services, 21% H&M (Offices and stores) Private 2% Consumer, 17% Goods Swedish Prison and Probation Service Public 2%

IT,10% Swedish Social Insurance Agency Public 2%

Finance, 6% Swedish National Courts Administration Public 1%

Telecom, 3% Åhléns Private 1%

Industry, 3% Handelsbanken Private 1%

Other, 16% KPMG Private 1%

TV4 Private 1%

4 042 commercial contracts TOTAL 17% (residential and garage not included)

14 As of 30 June 2020 CONTRACTED RENT BY PROPERTY TYPE Vasakronan’s revenues are anchored in the office sector with diversification into other segments such as retail

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

7% Offices 13% Offices 12% Retail Retail

Other 1) 19% Other 1)

68%

81%

Central Stockholm Stockholm inc CBD - Central Business inner suburbs Central Uppsala District

1) The category “other” includes residential space, parking and hotels. 15 As of 30 June 2020 CONTRACTED RENT BY PROPERTY TYPE (CONT’D) …with Stockholm as core city and Uppsala, Gothenburg and Malmo as key hubs

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

13% 5% Offices Offices

Retail Retail 26% 33% Other 1) Other 1) 61% 62%

16 1) The category “other” includes residential space, parking and hotels. As of 30 June 2020. MARKET SHARE BY REGION Vasakronan, the largest property owner in its key operating cities and can thus offer customers greater flexibility

CENTRAL STOCKHOLM INCLUDING CBD CENTRAL UPPSALA

25 25 22% 20 20 12% 15 15 10% 9% 10 7% 10 6% 5% 5% 5% 4% 5 5

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

GOTHENBURG CBD MALMO CBD AND VÄSTRA HAMNEN

25 25 22% 20% 20 20 15% 15 14% 15

9% 10 10 8% 6% 6% 4% 5 5 4%

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

17 Source: CBRE and Datscha, as of 31 December 2019 HIGH QUALITY PROJECT PORTFOLIO Most of the project aren’t started until lease agreements are in place

COMMENTS PROJECT PORTFOLIO 100% • Project development delivers higher return than acquiring properties • Vasakronan´s project portfolio has delivered an average Internal Rate 80% of Return of 11.5 percent as of 31 December 2019 76% • Most of the projects are only started if lease agreements are in place 60% • Ongoing property developments projects have a total investment 55% volume of EUR 1453m, of which EUR 849 m had been capitalized as of 40% 30 June 2020

• The project portfolio represents 8.8 per cent of total assets 20% • As of 30 June 2020 the average occupancy rate in major property projects was 77 percent and the percentage of completion was 62% 0% percent 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Percentage of Completion, % Occupancy Rate, % (area)

Kronan, Sundbyberg, Stockholm, EUR 160 m Sergelhuset, Stockholm, EUR 382 m 18 As of 30 June 2020. FX-rate EURSEK 10,48 3. SWEDISH REAL ESTATE MARKET OVERVIEW MARKET OVERVIEW

COMMENTS STEADY URBANISATION TREND IN SWEDEN Inhabitants Stockholm Municipality • Sweden is one of twelve Aaa-rated countries • This economic environment has created a favourable investment climate in the Swedish property market and has contributed to a 1 200 000 1 100 000 rise in property prices 1 000 000 900 000 • The transaction volume in 2019 was EUR 22.7 bn 800 000 700 000 • The urbanisations trend in Sweden is strong, especially in the 600 000 500 000

larger regions and it is expected to continue inhabitants 400 000 300 000 • The supply of new office space has been far lower than the 200 000 100 000

demand 0

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

2020E 2021E 2022E 2023E 2024E 2025E

HIGHER RENT BUT LOWER COST PER EMPLOYEE STRONG SWEDISH PROPERTY MARKET EUR Transaction volume, EUR bn 15 000 25,0 13 600

12 500 20,0

10 000 8 230 15,0

7 500 EUR 10,0 5 000 20 10 sqm/empl sqm/empl

5,0 2 500 680 823 0 0,0 2000 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Rent per sqm Rent per workplace Domestic Investors International Investors Rents in 2019 monetary value.

20 As of 31 December 2019. FX-rate EURSEK 10,48 MARKET RENTS AND VACANCIES - OFFICES Increasing office rents in all markets

STOCKHOLM CBD UPPSALA INNER CITY 750 15 300 15 650

550 10 250 10

450

(%) (%) 350 5

EUR/sqm 200 5 EUR/sqm

250

150 0 150 0

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

2020 Q2 2020 2020 Q2 2020

GOTHENBURG CBD MALMO CBD

15 300 15 300

10 250 10

250

(%) (%)

5 200 5 EUR/sqm

200 EUR/sqm

150 0 150 0

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

2020 Q2 2020 2020 Q2 2020

Rent / sqm Vacancies, %

Source: Cushman & Wakefield. As of June 2020 21 As of 30 June 2020. FX-rate EURSEK 10,48 RETAIL MARKET OVERVIEW Increase in Retail Sales 2019 but e-commerce sector accounted for most of the growth

COMMENTS  Retail growth was stronger than expected during 2019 • E-commerce is growing fast and increased by 13 per cent in 2019 • E-commerce companies establish physical stores in order to increase sales online, and the other way around • Vasakronan has a plan to convert retail space info office

SERGELGATAN STOCKHOLM CBD RETAIL SALES Growth in Total Retail Sales, %

5,8% 6% 5% 3,7% 4% 3,6% 3,4% 3,4% 3,4% 2,7% 3% 2,0% 2,0% 2,1% 2% 0,7% 1% 0% (1%) -1,0% (2%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Estimate

Source: SCB, HUI Research June 2020, E-barometern. 22 MARKET RENTS AND VACANCIES – RETAIL PREMISES

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

950 (%) 4 (%) 550 4

750

EUR/sqm EUR/sqm 550 2 350 2 350

150 0 150 0

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

2020 Q2 2020 Q2 2020

GOTHENBURG CBD MALMO CBD

10 1 150 8 950 6

750 % 4 EUR/sq.m 550

350 2

150 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 2020

Rent / sqm Vacancies, %

Source: Cushman & Wakefield. As of June 2020 23 As of 30 June 2020. FX-rate EURSEK 10,48 4. FINANCIALS TOTAL RETURN Business target - a total return of at least 6,5% over a ten year period, and a total return of 0,5% above the industry average

20%

Vasakronan MSCI Swedish Property Index(1)

15%

11,5%

10% 9,9%

Capital Growth

Income Return

0% VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI VK MSCI 10 year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 average

COMMENTS

 Vasakronan has delivered a better total return than the Swedish Property Index MSCI nine out of ten years

 External valuation is carried out twice a year by independent firms of appraisers pursuant to the RICS Red Book

Notes: (1) MSCI-Index excludes Vasakronan. Source: MSCI Swedish Property Index. 25 STABLE OCCUPANCY RATE Occupancy rates have been stable over the cycle. 1,7 % of the office vacancy is related to project development

OCCUPANCY RATE VACANCIES % 100% 6,2%

80 1,7%

70 6,2% 60 4,5%

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

30 Investment Properties

Projects 20

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2

26 As of 30 June 2020 LEASE AGREEMENTS AND CONTRACT RENEWALS During the last 6 months the rents on renewals have increased by 8.3 %

DURATION IN CONTRACT PORTFOLIO NET LEASING VOLUMES Average Term 3,9 Years (Share, %) EUR m 15 60% 53 12

40% 6

20 maturing 20% 15 - 3 8

- 6 % % ofthe portfolio's leases 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 and after Investment Properties Projects Net Leasing Volumes

COMMENTS

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

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

 Tenants normaly pays for heating, cooling, waste management and property tax

 Lease agreements are adjusted according to inflation with a protection against deflation

 Due to rising rents the rent on renewals have increased by 8.3 percent in total during the last 6 months

As of 30 June 2020. FX-rate EURSEK 10,48 27 INCOME STATEMENT EBITDA and EBITDA margin have been improved over time due to growth in revenues and stable expenses

COMMENTS RENTAL REVENUE  Revenues have increased by approximately 32 percent compared to 2009 1000 600  Property expenses have been stable at a low level during the 900 500 same period 800 700 641 672 675 577 570 576 563 597 619 400 600 512 526 573  EBITDA and EBITDA margin have been improved over time EUR/sqm 500 300

400 EUR m EUR  During the second quarter 2020 some of Vasakronan’s 300 200 tenants received discounts due to Covid-19 effects 200 100 100  Vasakronan’s tenants received discounts amounting to EUR 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 July 10.2 m, of which the state will defray EUR 4.6 m 2019- June 2020 EBITDA INTEREST EXPENSES 75% 800 74% 600 -250 73% 700 71% 70% 70% 500 70% 69% 69% -200 600 68% 66% 501 499 400 -157 -151 500 470 -143 63% 399 437 -150 400 400 417 -126 393 389 EUR/sqm -122 -120 400 300 -111 -109 325 344 -107 -110 -100 -108

300 -100 EUR m EUR 200 m EUR 200 100 -50 100

0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 July 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 July 2019- 2019- June June 2020 2020

28 As of 30 June 2020. FX-rate EURSEK 10,48 CAPITAL STRUCTURE AND INTEREST COVERAGE RATIO LTV has been below 50% since 2011 and ICR has been way above the minimum of 2,0 times

ICR & LTV TARGET DIVIDEND POLICY

• Interest Coverage Ratio has improved substantially and is • Under normal circumstances dividends shall correspond to well above the minimum of 2,0 times 40-60 percent of the Group's profit before value changes and after taxes • LTV shall have maximum of 55 percent • In order to avoid over capitalization, larger dividend can be • LTV has been below 50 percent since 2011 paid in periods of rising property values

• LTV is accepted be lower at times of high property values • In times of negative property value development, dividends and vice versa may need to be lower or none, and if required, capital injection will be requested from the owners

INTEREST COVERAGE RATIO LOAN TO VALUE times % 60% 6 52% 52% 55 % 49% 48% 50% 46% 46% 5 4,7 4,6 44% 43% 43% 4,2 41% 3,9 38% 38% 4 3,7 3,8 40% 3,2 2,8 2,9 2,8 3 2,5 2,7 30%

2 20% 2,0 Times

1 10%

0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 Q2

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

CREDIT FACILITY CHANGE OF CONTROL

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

31 DIVERSIFIED FUNDING With high proportion of green financing

COMMENTS LARGE PROPORTION OF DARK GREEN FUNDING • Vasakronan has a diversified funding with a broad investor base • Limited Secured LTV at 7 percent of Total Assets • First corporate in the world to issue a Green Bond and a Green Commercial Paper • Dark green Second Opinion from CICERO and an Impact Report that is validated by the auditors

DEBT PORTFOLIO, EUR BN Nordic- and European Secured bank Commercial Investment Bank loans Papers 0.6 1.2 0.5

Bonds USD 0.2 52% Bonds AUD 0.1 Green Bonds JPY 6.8 0.1 Funding Bonds SEK 2.6

Bonds EUR 0.5 Bonds NOK 1.1 32 As of 30 June 2020. FX-rate EURSEK 10,48 VASAKRONAN´S GREEN FINANCE FRAMEWORK Vasakronan´s Green Bonds raise funds for projects with environmental benefits

COMMENTS • Second Opinion from CICERO with Dark Green Shading • The proceeds from Vasakronan´s green bonds are financing the following green projects; o New construction and major renovation – LEED Platina and at least 25 percent below current building regulation (Swedish BBR code) o Existing buildings – LEED Gold and energy performance under 100 kWh/sqm o Solar energy projects

ENERGY CONSUMPTION

210 -60% 190 170 150

kWh/sqm 130 110 90 70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 33

As of 30 June 2020 Q2 2020 DEBT OVERVIEW Low risk due to long Average Fixed Interest Term and long Average Loan Maturity

COMMENTS AVERAGE INTEREST RATE, • Credit facility from owners, EIB and cash covers all debt FIXED INTEREST TERM AND AVERAGE LOAN MATURITY maturities and cash flows within 18 months 7 • Excess liquidity amounts to EUR 860 m as of 30 June 2020 6 5 • Short term debt has been replaced by longer tenors, Average 4 Loan Maturity has increased by 1.5 years since 31 December 3

2018 % / Years 2 • Long average fixed interest rate maturity of 6 years 1

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 Fixed interest term Average loan maturity Average interest rate

DEBT MATURITY PROFILE, AVERAGE OF 5,4 YEARS CASH BALANCE AND CASH FLOW 18 MONTHS

3000 2330 3 000 2500 2000 2 500 1500

2 000 1000 860 500 1 500

EUR m EUR 0 EUR m EUR 1 1 000 -500 -1000 500 -1500 0 -2000 -1469 0–1 1–2 2–3 3–4 4–5 >5 Commercial Papers Secured Bank Loans Bonds SEK Bonds other currencies NIB+EIB Available Liquidity Cash Flow after Debt Repayment Excess Liquidity 34 As of 30 June 2020. FX-rate EURSEK 10,48 KEY CREDIT HIGHLIGHTS

Government Largest real backed ownership estate company structure in the Nordics

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

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

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

POLICY

FINANCIAL POLICY ACTUAL AS AT 30 JUNE 2020 FINANCING RISK

Average Loan Maturity At least 2 years 5.4 years

Loan Maturing 12 Months Max 40% 17%

Credit Facility from Owners and Cash / Loan Maturity 12 Months At least 100% 209%

INTEREST RATE RISK FINANCIAL Interest Coverage Ratio At least 2,0 times (last 12 months) 4.6 times RISKS Fixed Interest Term At least 2 years 6 years

Interest Maturity within 12 Months Max 55% 27%

CREDIT RISK

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

CURRENCY RISK

Currency Exposure without assets in foreign currency Not allowed Fulfilled

Secured Debt/Gross Assets Max 20% 7%

37 INCOME STATEMENT

Income Statement (EURm) Dec 31, 2018 Dec 31, 2019 Jun 30, 2020

Rental Revenues 641 672 331 Revenue Growth, % 3,8% 4,8% -- Operating Expenses (68) (65) (34) Repairs and Maintenance Expenses (10) (11) (6) Property Administration (34) (36) (17) Property Tax (50) (63) (31) Site Leaseholds 1) (14) -- -- Net Operating Income 465 497 243 Surplus ratio, % 72,1% 74,0% 73,4% Central Administration (10) (11) (6) Profit from Joint Ventures and Associated Companies 15 105 (28) Interest income 0 0 0 Interest expenses (100) (108) (55) Site Leaseholds 1) -- (8) Profit Before Value Change and Tax 371 470 147 Change in Value of Investment Properties 1 016 1 266 (115) Depreciation of land lease agreements -- (1) (0) Change in Value of Financial Instruments 1 (84) 21 Divested or Impaired Goodw ill (6) (7) -- Profit Before Tax 1 382 1 644 52 Current Tax (11) (22) (11) Deferred Tax (140) (295) (7) Profit from Assets Held for Sale ------Profit for the Period 1 231 1 327 34 Other Items -- (0) (0) Profit for the Period 1 231 1 328 35 1) Reclassification in accordance with IFRS 16 Leasing

As of 30 June 2020. FX-rate EURSEK 10,48 38 BALANCE SHEET

Balance Sheet (EURm) Dec 31, 2018 Dec 31, 2019 Jun 30, 2020 Intangible Assets 199 193 194 Investment Properties 13 259 14 895 15 027 Equipment 4 4 4 Investment Properties, site leaseholds 1) -- 500 703 Other Financial Receivables 97 201 22 Total Non-Current Assets 13 559 15 793 15 950

Current Receivables 86 112 164 Cash and Cash Equivalents 211 335 422 Total Current Assets 298 448 585

TOTAL ASSETS 13 857 16 241 16 535

Total Equity 5 752 6 695 6 730 Deferred Tax Liabilities 1 745 2 039 2 046 Debt, site leaseholds 1) -- -- 493 Interest-Bearing Debt 5 830 6 360 6 466 Non-Interest Bearing Liabilities 530 646 799 TOTAL EQUITY AND LIABILITES 13 857 16 241 16 535

As of 30 June 2020. FX-rate EURSEK 10,48 39 CASH FLOW STATEMENT

Cash Flow Statement (EURm) Dec 31, 2018 Dec 31, 2019 Jun 30, 2020

Net operating income 465 497 243 Central administration (10) (11) (6) Add back amortisation and depreciation 1 1 0 Adjustment for other non-cash items (1) (1) (0) Cash flow from operating activities before interest and tax 455 486 237 Interest Paid, Net (102) (114) (69) Taxes Paid (assumed to equal current tax) (13) (14) (17) Cash Flow Before Changes in Working Capital 340 358 151 Change in Net Working Capital 6 7 (31) Cash Flow From Operating Activities 347 365 121

Intangible assets ------Investments in Existing Property (318) (424) (247) Net Acquisitions/Divestments 181 55 -- Other PPE, Net (2) (0) (0) Other Financial Assets -- (1) (1) Dividends from joint ventures 162 29 -- Cash Flow from Investing Activities (139) (341) (245)

Dividends and Group Contribution (382) (382) -- Loans to Ow ner ------Change in Debt, Interest-Bearing Liabilities 256 493 212 Change in collateral 24 20 20 Redemption of Financial Instruments (46) (32) (22) Cash Flow from Financing Activities (148) 100 210

Cash Flow from the Period 76 124 86 Opening Balance Cash and Cash Equivalents 136 211 335 Closing Balance Cash and Cash Equivalents 211 335 421

As of 30 June 2020. FX-rate EURSEK 10,48 40 CASH FLOW FROM THE BUSINESS AFTER NET INVESTMENTS

500

400

300

200

100

EUR m EUR 0

( 100)

( 200)

( 300)

( 400) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2 2020

Cash flow from the business Net investments Cash flow after investing activities

As of 30 June 2020. FX-rate EURSEK 10,48 41 YIELD DEVELOPMENT Property yields offer attractive spread over government bonds in all Vasakronan’s key cities

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

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

Source: Cushman & Wakefield, Bloomberg. 42 LONG TERM TARGETS

FINANCIAL A total return of at least 6,5 percent per year A total return of at least 0,5 percentage points higher than the real estate sector ENVIRONMENTAL Our properties are self-sufficient and need no purchased energy We have halved our power requirements Our business and those of our customers generate no waste that is unable to be recycled or reused Our business is climate-neutral by 2030 We build our properties using renewable, recycled or reused materials All of our financing is green We are ranked as the most sustainable property company in the world

SOCIAL All employees act in accordance with our values and our Code of Conduct We have a positive work environment free from negative stress Discrimination and harassment do not occur at our workplaces The design of our properties contributes to the security, safety and health of those both inside and outside them Suppliers work in accordance with our Code of Conduct for suppliers We reflect the society in which we work in terms of gender, ethnicity and age We have no workplace accidents at our construction sites