1. Long tradition of untraditional business
Name Name
October 2017

2. This is Tagehus
Create value growth through investments and development of assets with good and stable value potential long term
Residential, hotel and swimming pool properties
Airplanes
Complementary portfolio companies with value growth potential
Strategic, long-term investment in Atrium Ljungberg, a Swedish listed property company
Investments and operations in Sweden and The Netherlands
100% family owned group
Founded in 1946
Resting on a master builder tradition
Referens till byggmästare på engelska;

3. Together we build lasting values for future generations
I sammanhanget byggmästartradition kan Tagehus värderingar nämnas - om det passar - tex omtanke, ärlighet och lojalitet.

4. Long term investment perspective
Active owner
Buy, develop and hold is the main strategy
Small organization, speedy decision making processes
Majority ownership is preferred

5. Strong brands in all segments
Residential
Hotel and conference
Swimming and leisure
Airplanes
Investments

6. Total assets of approx. 7,0 MSEK in five segments
Här kan nämnas att portföljprofilen bidrar till att sprida riskerna.

7. 2016 in brief Operating income 1 291 MSEK* (1 246)
Asset management profit 222 MSEK (194)
Profit after tax 638 MSEK (530)
Investments 464 MSEK (157)
Equity MSEK (3 236)
Profits mainly driven by Credentia and new terms for the hotel operations in Amsterdam
Stronger long term focus on sustainability issues
* Tagehus Holding and T Ljungberg BV’s financial performance combined

8. Residential

9. Property management and land portfolio
460 approx. rental apartments on Lidingo, north east of Stockholm
Undergoing renovation
Further property and land development planned
370 approx. rental apartments in Are, northern Sweden
Zoning to increase residential density
Ambition to increase presence in Are long term
20% project property ownership in Akersberga, north of Stockholm, totaling residential units

10. Credentia’s development rights portfolio
Credentia, founded 1926 in Norrtalje, north of Stockholm
Production and sales of condos and housing developments
Property management
Contracting services
Operating income 390 MSEK (347)
Project portfolio of approx (900) units by Dec. 31, 2016
Sales of approx. 160 apartments (100)
Construction start of 160 apartments in own book
Acquisition of 50 development rights in Akersberga
Plan to expand to additional local markets

11. Residential MSEK 2016 2015 Operating income 451.0 404.6
Property management profit
38.0
27.7
Interest coverage ratioe (%)
283
247
Return on equity (%)
18.4
16.2

12. Hotel and conference

13. Hotel and conference
Hotel and conference facilities in Stockholm, around Lake Malaren and Amsterdam
Hotel operator agreement with property company Humlegarden in Solna
Refurbishment and upgrading of hotel and conference facilities at Marriott Hotel
Acquisition of smaller property in Amsterdam at the start of 2017

14. Hotel and conference MSEK 2016 2015 Operating income 405.6 382.2
Property management profit
102.6
67.7
Interest coverage ratio (%)
513
373
Return on equity (%)
30.1
6.3

15. Swimming and leisure

16. Swimming and leisure
Turn key offers for swimming pools and sports facilities
Specialists in project development and construction of indoor swimming pools, combined with long experience of operating swimming and other exercise activities

17. Medley
Manages and operates approx. 35 swimming pools and sports facilities in 20 municipalities in Sweden
The biggest operator of public swimming pools and wellness facilities in the Nordic countries, founded in 2001
Operating income 332 MSEK (332)
Further strengthening of the organization
Expanded offer in exercise and wellness to reach new customer segments
Approx. 3.3m visitors 2016
Operating sports and outdoor facilities as well

18. Tagebad Indoor swimming pools
Turn key offer includes design, project management, construction, property management and ownership
Quality and construction standard key to low maintenance costs long term
Offers a range of standard size indoor swimming pools
Continued dialogue with municipalities about building new indoor swimming pools

19. Jarfalla municipality chooses Medley
Complete swimming and sports concept, including construction, management and ownership of new indoor swimming pool
50 meters pool, 3 training/children’s pools and a Jacuzzi
The indoor pool facility is designed, built and financed by Tagehus on a 30 year contract
Completion expected spring 2018
Building on experience from Tyreso indoor pool, built and inaugurated as planned 2012/13

20. Swimming and leisure MSEK 2016 2015 Operating income 333.4 332.5
Property management profit
21.0
30.7
Interest coverage ratio (%)
660
833
Return on equity (%)
11.9

21. Safe and transparent procurement of indoor swimming pool and wellness facilities
Cost control and predictability
Control over production, maintenance and capital costs
Remuneration determined long term
Quality based on long experience
Quality and service attracts more visitors
Contributes to better public health in the municipality
Efficient and simple administration
One procurement and one contract
Extensive developer competence not required nor any operational or staff responsibilities
Proven concept
Potential risk absorbed by Tagehus as regulated by contract
Positive experience from Tyreso och Jarfalla
Municipality’s influence
Ongoing consultation
Transparent agreements
Repurchase right
The municipality has the right to repurchase the facility during the contract term
Low capital costs
Municipality guarantee lowers the cost
Pool owner and operator’s equity acts as buffer

22. Airplanes

23. Rockton management company
Leasing of airplanes for regional traffic, mainly turboprop planes for the European market
Fleet of approx. 20 airplanes, including partly owned planes
LOI with Mitsubishi Aircraft to acquire MRJ90 regional jets for delivery starting 2020
Lease back agreement with Air Atlanta regarding three GE engines
Actively seeking acquisitions, including whole fleets

24. Airplanes MSEK 2016 2015 Operating income 102.4 124.8
Asset management profit
40.4
39.4
Interest coverage ratio (%)
1 053
449
Return on equity (%)
6.9
22.7

25. Investments

26. Investments Atrium Ljungberg (10.6% of votes)
Listed property company that owns, develops and manages primarily retail and office properties
Focus on growth regions such as Stockholm, Malmo, Gothenburg and Uppsala
Establishment of new equity portfolio with a 100 MSEK mandate
Greater risk diversification
Improved relations with the capital markets
Fokus weekly news magazine (22.2% of votes)

27. Investments Mkr 2015 2014 Operating income* 58.1 57.0
Asset management profit
44.7
44.3
Interest coverage ratio (%)
489
490
Return on equity (%)
19.6
25.4
*Including financial income

28. Tagehus in numbers

29. Profit and loss statement
MSEK
2016
2015
Operating income
Operating expenses, excl. depreciation and write-downs
Operating profit, excl. depreciation and write-downs
215.1
204.5
Financial income
63.4
62.1
Financial costs
-61.0
-66.7
FX effects
4.6
-6.0
Profit from asset management
222.1
193.9
Depreciation and amortization of fixed assets
-117.0
-125.5
Capital gains on divestment of assets
72.8
1.7
Unrealized changes in value, securities and property
536.1
533.2
Result before tax
714.0
603.3
Tax on the result of the year
-75.9
-73.0
Result
638.1
530.3

30. Balance sheet MSEK 2016-12-31 2015-12-31 Tangible fixed assets 3 789.5
Financial fixed assets
Other fixed assets
67.4
165.6
Current assets excl. cash
391.3
336.3
Cash
213.4
232.4
Total assets
Equity
Provisions
311.3
253.0
Long-term liabilities
Short-term liabilities
495.4
513.0
Total equity and liabilities

31. Operating income and asset management profit 2016

32. Operating income +17% a year on average 2012-16
MSEK

33. Asset management profit +11% average 2012-16
MSEK

34. Assets and equity - Assets +15% and equity +15% on average 2012-16
MSEK

35. Key ratios
2016
2015
Profit from asset management vs operating income (%)
17.2
15.6
Interest coverage ratio (%)
463.5
390.4
Return on equity (%)
18.4
17.6
Return on equity, excl. unrealized changes in value (%)
9.7
4.9
Return on total assets (%)
11.8
11.3
Return on total assets, excl. unrealized changes in value (%)
5.7
4.0
Equity ratio (%)
53.4
52.0
Gearing ratio (%)
35.0
35.8
Average rate of interest on interest-bearing liabilities (%)
2.8
2.7
Average number of employees, the group
631
608

36. Equity ratio and target fulfilment
Financial targets
Definition
Target fulfilment 2016
Interest coverage ratio over 200% long term
Cash flow must cover interest costs by a wide margin
+464%
Solidity over 40% long term
Equity adjusted for risk
53%
Average fixed interest rate term 1-3 years
Aiming to reduce interest rate exposure
2.2 years

37. About Tagehus

38. Values and foundation Foundation Long term investment perspective
High business standards
Trust
Respecting the individual
Foundation
Business sense
Confidence
Competence
Caution

39. TLBV Hospitality Group
Organization
Approx. 630 co-workers in total of which approx. 75 in Residential, 300 in Swimming and Leisure (Medley) and 245 in Hotel and conference
Head office in Stockholm with 13 co-workers
Strengthened competence in sustainability
Low management cost target
Tagehus
T Ljungberg
BV Group
TLBV Hospitality Group
Tagehus Holding Group
Swimming and Leisure
Credentia
Group

40. Thank you for your time Questions?
Name Name
October 2017