SBB Norden (SBB) investor relations material

Deal rationale and strategic fit

• Transaction completes a multi-year transformation, simplifying the group into three focused, market-leading segments: Education, Residential, and Social/Community assets, each with investment grade ratings and specialized management teams.

• Enables a shift to platforms with critical mass, leveraging demographic trends and stable, government-backed income streams for resilience and growth.

• SBB retains significant minority stakes in leading brands, ensuring continued exposure to stable, public sector-backed income streams.

• Positions the company as the largest listed European social infrastructure platform, expanding regional presence and sector depth.

• Simplified structure and de-risked balance sheet enhance operational focus and transparency.

Financial terms and conditions

• SBB sells subsidiaries holding about 740 community properties valued at SEK 32–35bn to PPI, receiving more than SEK 11bn in net cash proceeds and shares in PPI.

• SBB's ownership in PPI increases to nearly 40% (39.99% of shares), remaining the largest shareholder.

• SEK 15bn in secured debt leaves the group, with PPI not consolidated post-transaction.

• Proceeds will be used to reduce parent-level debt, with SEK 1.7–1.8bn for bond repayment and SEK 9bn for additional debt reduction.

• Transaction value is about 8% below the last reported GAV for the assets.

Synergies and expected cost savings

• Annual administrative cost savings of SEK 100mn expected from a simplified structure and staff optimization.

• Financial synergies estimated at SEK 390–400mn per year from lower debt and streamlined operations.

• Operating synergies and improved cash flow anticipated, with LTV reduced by 200bps post-transaction.

• Elimination of costly joint venture structures and duplicate ratings will further reduce expenses.

• Administrative cost base post-transaction estimated at SEK 60–80mn.