2020 Annual Report and Sustainability Report Market leader in secure facilities Contents Specialfastigheter 2020 Annual Report and Sustainability Report in brief 1 The report integrates financial, sustainability and corporate 2020 in brief 6 governance-related information to provide a comprehensive CEO’s statement 8 description of Specialfastigheter’s operations. Long-term benchmarking 10 Our strengths and assets 12 Administration Report Business model 14 The Administration Report can be found on this page and Sustainable value chain 16 pages 38–115 with the exception of pages 51–54 and 56–64, which comprise the Sustainability Report. External conditions and strategies 18 Sustainability Report Business intelligence 20 The Sustainability Report follows the 2016 GRI Standards: Stakeholder dialogue 22 Core option and has been the subject of a limited assurance Target areas 24 report by an external auditor. The scope of the Sustainability Creating customer value 25 Report is detailed in the GRI list of contents on page 58. Best at security 27 Long-term profitability 29 = Sustainability Report – Supplier collaboration 29 The Statutory Sustainability Report pursuant to the Annual Responsibility for the Accounts Act. environment and climate 32 Proactive skills sourcing 36 Specialfastigheter Sverige AB (publ) Company registration number 556537-5945 Administration Report Description of operations 38 Property portfolio 39 While every care has been taken in the translation of this annual report, readers are reminded that the original annual Project implementation 42 report, signed by the Board of Directors, is in Swedish. Property management and operations 45 Financial management 48 Responsibility and governance 50 Risks and risk management 51 Sensitivity analysis 55 GRI Sustainability Report 56 Assurance Report 65 Message from the Chairman 66 Corporate Governance Report 67 Board of Directors 74 Management 76 Financial statements 78 Consolidated financial state- ments, incl. comments 79 Five-year summary 85 Consolidated notes 86 Parent Company’s financial statements, incl. comments 105 Parent Company’s notes 109 Declaration by the Board 115 Auditor’s report 116 Property holdings 120 Definitions 123 Reporting calendar 124 Annual General Meeting 124 Addresses Back cover SPECIALFASTIGHETER IN BRIEF Our role in a safer society A unique position “ Our experience has shown us how much confi- dence is fostered among our customers over the long term by Specialfastigheter’s capacity to offer project implementation and property management with deep-rooted security expertise in line with the security level of the properties. With almost 25 years’ experience behind us, we have unique security expertise and a leading position in our niche.” Åsa Hedenberg, CEO A leader in secure facilities Specialfastigheter supplies secure facilities – secure, adapted and sustainable premises that actively contribute to our customers’ societally vital operations. We have a high level of opera- tional reliability, a strong local presence and financial stability. We work in close collaboration with customers to identify solutions together that support their operations. Taken together, this makes us a leading supplier of secure facili- ties. Read more on pages 12–13. Our business idea Our mission Based on sustainable business practices and long-term, Specialfastigheter’s mission is to own, develop and manage commercial ownership, Specialfastigheter develops and properties with strict security requirements in Sweden on manages properties in Sweden for customers whose opera- commercial terms for the long term, wherever there is a tions demand stringent security standards. national security interest. The guiding principle of our oper- ations is to reduce the state’s overall costs. In a competitive Our Vision market, Specialfastigheter may also own, develop and man- age properties in which there are other kinds of security Specialfastigheter – the most secure and attractive prop- interests and pursue other related business. erty company promoting a safer, more secure society. Our core values Security Long-term planning Proximity Collaboration Security issues are our highest priority. Our mission We are a stable company that We have a customised organ- Together we can create requires great responsibility invests in the long term isation in which we discuss opportunities to ensure our and skill. together with our customers. plans, needs and wishes customers’ success. through open dialogue. SPECIALFASTIGHETER 2020 ANNUAL REPORT AND SUSTAINABILITY REPORT 1 SPECIALFASTIGHETER IN BRIEF Sustainability and influence in our value chain Our properties affect a range of sustainability areas throughout their lifecycle. Reducing our negative impact and increasing our positive impact, both in our operations and in other parts of the value chain, is an area on which we work proactively. We maintain a close dialogue with our stakeholders and set requirements for our contracted suppliers, but we also need to increase our influence along the supply chain. Read more about Specialfastigheter’s value chain, our significant sustainability areas and how we can influence various phases of a prop- erty’s lifecycle on pages 16–17. Working alongside custom- ers to create a safer society As a property owner, we do all we can to help our customers, with 2020 being another intense year with many proj- ects under way to support them. Together with the Swedish Police, we have entered the planning phase for the construction of new police stations in Borås, Härryda and Malmö. We are also building several standard build- ings for the Swedish Prison and Proba- tion Service and adapted standard buildings for the Swedish National Board of Institutional Care across the country. You can follow some of these projects from both our customers’ and our own perspective in three reports. Read more in our cases on pages: 23, 26, 31, 35, 37, 41 and 44. Image: The Prison and Probation Service Björn Myrberg We can solve the shortage of spaces together First standard schools established ”This piece of sheet metal will The Swedish Prison and Probation Service’s correctional facilities have long been fully at three juvenile care homes save thousands of hours” occupied, and in autumn 2020 it was announced that this was the reason for the authority entering a state of heightened preparedness. How can Specialfastigheter help According to the Education Act, all children and young people in Sweden are entitled As a project manager and project developer at Specialfastigheter, Gustav Tidman has most effectively in this serious situation? to an education, and school plays a vital role in improving future prospects for young extensive experience of leading countless minor and major projects. He knows what people in care. For this reason, all juvenile care homes operated by the National Board is required to build robust and long-lived secure facilities. As a property owner, we do all we can to help our custom- types of temporary premises, among other things. We ers, and we have many projects under way to support the believe that the client trend we have seen recently will con- of Institutional Care (SiS) have a school with qualified teachers, and SiS has worked Prison and Probation Service. The first standard building tinue for a relatively long period to come, and we have an What is the difference between the construction fire resistance, smoke leakage protection and evacuation was opened during the year, while projects involving more ambitious expansion plan that partly involves renovating hard over the past few years to improve the schools, make them more professional and of normal buildings and a secure facility? safety. Our windows are secure from both a break-in and similar buildings are progressing across the country. We buildings whose maintenance has been severely neglected, harmonise their standards. “Our niche is secure facilities, but from my viewpoint, we’re breakout perspective and, among other things, we have also signed agreements to build temporary premises at a and partly involves increasing our capacity.” not primarily building security – we are building protection. developed our own cell doors and security windows number of correctional facilities. The Prison and Probation For example, we protect information, or protect the sur- together with our customers. Our ambition is to build in Service’s Finance and Property Director Björn Myrberg What kind of interest is there from Swedish Over the past few years, Specialfastigheter has built new a communal area. The second floor is dedicated entirely rounding communities from inmates who wish to escape protection and security without them being noticeable, to explains his view of the situation and future plans. munici palities when it comes to the establishment residential sections at a number of SiS’s juvenile care homes to the teaching staff. There are also outdoor yards linked from a facility. It is therefore important to have a deep thereby avoid provoking unnecessary attacks on material.” across Sweden. As capacity increases at these homes, there to the standard schools that have space for table tennis, of correctional facilities? understanding of our customers’ operations and how they Björn, describe the situation facing the Swedish prison “We are a major employer in many areas. Lots of municipali- is an increasing need for more school places. In collabora- basket ball courts and planters, among other things. The function. Everyone knows what a house, preschool