Welcome to SBB presentation of the transaction between SBB and PPI. For the first part of the conference call, the participants will be in listen only mode. During the question- and- answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to Treasury Director and IR Helena Lindahl, please go ahead. Good morning everyone and a warm welcome to our presentation this morning which will cover all you need to know about the transactions made public yesterday between PPI and SBB. I stand here with our CEO Leiv Synnes and he will walk you through the transaction, the strategy behind it and also where it will lead SBB going forward. After Leiv's presentation we will host a live Q&A session and we expect to be finished well ahead of the market open at 9:00 A.M. With that said, please go ahead. Leiv. Thank you, Helena. I'm very happy with this transaction. I think it is the best solution for SBB. I also think it's a win-win transaction, so it's good for SBB but also for our associate company Public Property Invest. I think this is the final step in SBB's transformation. By selling the Social Platform to PPI, SBB completes the strategic roadmap we set out a couple of years back, and we are simplifying the group, we are reducing the risk, and we are sharpening our focus on core value creation. As I said, we believe this is the best solution for SBB for multiple reasons, including the valuation upside delivered to shareholders, liquidity release, and the ability to grow in the future through three clear and well-defined strategies. Such deal allows SBB to retain a minority stake in the market leading brands with investment grade ratings. The transaction will generate SEK 11 billion in net proceeds. We will be able to reduce debt in the near future and this will create a runway that we will use to build up and grow the subsidiaries and associated companies. The remaining debt in SBB will have low coupons and long maturity which is a huge benefit for SBB and all the properties we have now or have exposure to will have attractive cost of funding supported by investment grade rating in each leg and we will from SBB side benefit from the strong cash flow in the core holdings. The business lines will be well defined and clear, run by specialized employees and clear reporting. Over the last two years we have been set to reshape SBB into a simpler, stronger and more focused company. We have been committed to creating three distinct specialized platforms across Education, Residential and Social assets. We have executed on that p lan. Nordiqus, our Educational platform, is now a market leader and holds an investment grade rating. Sveafastigheter, our core Residential platform, also operates with an investment grade rating. Now the Social properties, when moved into PPI, can benefit from the BBB rating that PPI gets through the transaction. The combination of such businesses gives SBB a clear path for growth underpinned by highly predictable and uniquely stable income streams from the safest economies in the world. All three respective strategies benefit from critical mass and becoming the leader in the sector. With an appropriate cost of capital and investment grade rating, each platform now has a clear mandate, a strong brand, and specialized management. This page shows the transaction structure. SBB are selling assets to PPI worth of SEK 35 billion and in return SBB receives shares in PPI plus cash. We are able to increase our holdings or share of the holdings in PPI from 33% to close to 40%, maintaining our role as the largest shareholder in PPI. After the transaction, PPI will become a larger, more institutional platform with SEK 50 billion of assets. That is a huge benefit. If we look on the holdings in total for SBB after the transaction, we can see that we have three market leading platforms. We will hold 40% in PPI, the number one listed Social infrastructure owner in Europe. We will hold 62% in Sveafastigheter, the number one pure Residential platform in Sweden, and 50% in Nordiqus, the number one Educational property platform in Europe. On top of that, SBB will retain around SEK 5 billion of development properties that feed growth into these core platforms. Each platform benefits from stable, predictable income streams that is backed by public tenants in some of the safest and most resilient economies in the world. SBB is now the only listed entry point into three essential social real estate segment, Education, Residential, and Social infrastructure at a scale and with investment grade funding. In addition, the development arm enables SBB to be selective in investment and to perform value add investments. On the next page there, on page eight, we will look on the core holdings and also the non-core holdings. We will be able to reduce the debt in SBB in the transaction, and after the transaction we have core holdings and we have non-core holdings. We believe that these transactions will enable us to grow the core holdings so that from 2025 to 2028 we will gain and increase the value of the core assets. The non-core holdings mainly consist of the loan to Nordiqus, the Residential platform joint venture that we currently have with Morgan Stanley, and some other assets. In total, those assets which are non-core amount to SEK 14 billion, and we will use those SEK 14 billion to continue to create a runway that will enable us to continue to grow the core holdings on page 10. I think the SBB stakeholders will be hugely positively impacted directly but also in the coming years the number of strategic and operational benefits driving direct and indirect value creation for SBB shareholders. First of all there will be a simplified and more transparent structure and that will reduce also the admin burden and the external cost in SBB. I think it's around SEK 100 million lower cost for administrative topics in SBB going forward. Also we will limit the amount of cost of debt in SBB and reduce the financial cost with around SEK 400 million per year and the net proceeds of SEK 11 billion will enhance the liquidity quite well and will enable proactive liability management targeting at delivering and preserving capital growth for opportunities. SBB equity story we were creating a leading and resilient business profile positioned for future growth. SBB, all three segments benefiting from a very resilient position in the market and the tenant base in both Educational and the Social arm is supported by AAA rated public sector tenants. In the Residential sector, benefits from demographic positive outlook plus a regulated market. We are creating leading brands with significant scale. It's a huge benefit to have the market leader, leading brands among the SBB core holdings. We also benefit from having a diversified corporate structure and from having three different segments, Social, Residential, and Education. I think we benefit from a transparent and simplified business model and structure, and this will attract investors, both credit investors and equity investors. When reducing the short term maturities in SBB we will be able to focus on long term value creation and also during that time we benefit from the low cost of debt that we will have on the remaining bonds. I also think that the management team in SBB have proven itself during the hard times and now we will have some tailwind going forward and I'm very confident that we will perform above the market going forward. In total I think SBB is well positioned. We will be able to show superior growth underpinned by core holdings and good funding situation. Thank you. Thank you very much. Leiv. Leiv has just walked you through the logic of the transaction and we will move on to the Q&A session. We have a lot of listeners in the call and we expect many questions. Please refrain from asking questions that have already been asked. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Mary Pollock from CreditSights. Please go ahead. Good morning and congrats on the deal. I was hoping you could help me understand how some of this is going to impact consolidated IFRS figures for SBB. Starting on the debt side, you talk about SEK 15.3 billion of debt leaving the group. How much of that debt is at the Castlelake JV, so is not consolidated, and how much is consolidated? Also, what do you expect the impact on total value to be? I assume it is consolidated community properties. That is like SEK 19 billion at 3Q. Also, the receivables are really the bulk of value you have from the Castlelake JVs, but what else am I missing? Anything in those? We are experiencing some technical difficulties to move to the Q&A session. Please stay with us. Mary Pollock, your line is now unmuted. Please go ahead. Morning and congrats on the deal again. Can you hear me now? Yes, thank you very much, Mary. Now we are in sound mode again. Thank you for that. Please ask your question and we will answer it. No worries. I was hoping you could help me understand how this deal is going to impact consolidated IFRS figures for SBB. You talk about SEK 15 billion leaving the group. How much of that is the debt at the Castlelake JVs and how much is consolidated in your accounts? If you could provide a mix of how much of that is secured, that would be really helpful. Also, on the asset side, what are you deconsolidating as a result of this transaction? Yes, the Castlelake funding at the moment is combined in the two portfolios we have with them is around SEK 10.5 billion. If we add the local banks funding into the portfolios, we add up to SEK 15 billion in total. You can say that the secure debt that moves with the properties or are repaid in connection with the trade is SEK 15 billion and we will not consolidate PPI. Yes, and in terms of what you deconsolidate. You deconsolidate obviously the community assets, which is SEK 19 billion, and then the receivables from the two Castlelake JVs. And then you'll increase, I guess, your holding of PPI on the asset side. I'm thinking about that the right way. You're correct. Okay, thanks. Also just I'm pretty sure this is the case. Obviously there's a few different steps in this transaction. Aker is paying you to transfer shares. You're getting shares in kind from PPI within Aker is buying from you. That cash from Aker, it's like about SEK 4 billion. I think that's included in your SEK 11 billion proceeds. It's not in addition to. Yes, it's included. Okay, thanks so much. Congrats again. Thanks. Next one. The next question comes from Othman from Al Rajhi. Please go ahead. Yes, hi. Thank you for taking my question. Just a question on election agencies. Have you been in touch with SMP and Teach and do you expect them? To react. To the news. Thank you. Hello, Othman. Yes, we have been informing the rating agencies about the transactions. I have not read the report yet of the conclusion on the trade. At the moment I don't know how they will react. We have well informed them about the transaction details. Okay, that's helpful. Okay, thank you very much. Next one. The next question comes from Fredrik Stensved from ABG Sundal Collier. Please go ahead. Thank you very much. Morning and congrats. I have one question on the administration costs that you refer to. I think you mentioned a SEK 100 million cost saving and I'm trying to sort of understand what is the base here. I mean last week in the Q3 report there was one figure in the, in the earnings capacity and there was also a comment from, from you Leiv that maybe it should approach, you know, 10% of NOI towards the end of 2026. And looking at the press releases from yesterday, it seems like PPI will incur another SEK 150 million in admin. So, so what is sort of the base and where will SBB end up in terms of administration costs, do you think? Going forward. In the parent, we estimate around SEK 60 million-SEK 80 million in administrative cost after the transaction. Let me come back to you in writing about the starting level there. I do not have it in my head. In general, when I said 10%, the administrative cost should be 10% of the rent. Now we have a limited amount of properties left. That will not be like a target going forward. It is more that we will have some administrative cost for maintaining the development portfolio on top of managers running the company outside the development portfolio. Maybe SEK 60 million-SEK 80 million in total cost there. The cost reduction, if I elaborate a little bit on that, will be synergies between us and PPI, meaning some staff optimization. We also likely do not need costly structures anymore. It is costly to run joint ventures both from a legal perspective, but also from an accounting perspective and reporting perspective. Also, we do not need to have as many ratings as we have today. Today we have ratings both in the parent and in the holding company. There are a lot of different costs that we will be able to cut if we are able to streamline the corporate structures and not live in such a complex environment that we have been during the last years. Yeah, that certainly makes sense. Thank you. Thank you for that. I have one more question, if I may. On page eight in the presentation you show the asset side core holdings versus non-core holdings. Can you split the investment holdings of SEK 5.9 billion that you include in the core holdings? What is, what is that? What are sort of the main pieces in that SEK 5.9 billion? Yeah, we have different holdings in various companies and most of them are unlisted. We have also listed assets in that portfolio. The larger part are smaller joint ventures and also some equity stake in larger entities which are private. There is not one big holding. It is a number of small to mid sized holdings in various companies. Okay, but all of those are sort of core holdings going forward as well then. Oh, okay. You mean the SEK 5.9 billion. Yes, the SEK 5.9 billion. Sorry, sorry, I misunderstood you. That's mainly the development portfolio. Okay. Yeah, thanks. That's clear. Thank you very much both. Thank you. Next. The next question comes from Emanuele Arnoldi from Barclays. Please go ahead. Hi, good morning and congratulations for the transaction and I have to say for the whole journey since you joined the company because you really told us every time what you were going to do and you did it. So well done. Doesn't happen very often. The. The questions that I had are very detailed, so fairly detailed, but hopefully simple to answer. On this page eight of the present. Page nine of the presentation, sorry, which is the same one we were looking at now for the previous question. Am I right to say that when we look at the equity which is SEK 14.1 billion in the chart for 2025 post transaction, we need to then keep in mind that that includes also the minority into, for example, Sveafastigheter. Yes, you're correct. Okay, perfect. No, I think it's only our holdings there. It's not the minority part of the equity. It's on our part. Is that so? Because Sveafastigheter is there for nine, which I assume is the total assets you're consolidating into the balance sheet and then 14.1, I would have thought it's more or less nine of your own equity, so to say. And five or six is the non-controlling interest into Sveafastigheter and other entities. Let me see if I'm correct here, but I think the equity in Sveafastigheter, the total equities should be around SEK 15 billion plus. The nine here is 60% out of that 15, SEK 15 plus billion. It's our share. Yeah. It's not the minority of the book equity. Yeah. Okay. Now because I had in mind the market cap which was obviously a much lower number. That is why I had the question. Okay, understood, thank you for clarifying. Okay. It is just a matter of how one looks at it. The other question is use of proceeds because obviously, if I understand correctly, you are getting more or less EUR 1 billion, which is this SEK 11 billion. You are using more or less EUR 300 million between the reinvestment that you have to make in shares of PPI and paying or redeeming more or less at par the bonds at the top holdco level, the original holding company, the ones that were not exchanged, which I think, if I remember correctly, roughly speaking leaves the company without any security carrying a financial covenant. I guess the whole transformation here obviously is not compatible with that. Is that fair? That will mean that you have EUR 0.7 billion that you can then use to tackle the 2026 maturities and any. Can you please ask your questions in the interest of time? Yes, question. Yeah, I understood the question, so thank you. It's out of the SEK 11 billion. Yeah, we have already taken care of the initial debt that you mentioned there. The only debt that we repay with the SEK 11 billion that is like concluded already is the debt in the parent, the bonds in the parent. That is around SEK 1.7-SEK 1.8 billion, something around that number. That would leave us with roughly SEK 9 billion left to spend on other debt reductions. Okay, sorry, that the question was one. Yeah. You are correct that it will remove all the historic covenants and the only remaining covenants is in SB holding now. They are quite flexible and enable us to manage the company in a good way, both for equity investor but also for debt investors. Wonderful. Thank you so much. Thank you. That concludes the Q&A session. We promised that we would finish ahead of the market. If you have any further questions, please contact us at the ir@sbbnorden.se and we will be able to answer your questions there. Thank you all so much for listening in this morning. Have a great day.