CA FASTIGHETER AB Swedish company registration number: 556227-5700 Annual Report, consolidated accounts and Auditors' Report for the financial year 1 January 2010 to 31 December 2010 The Board of Directors and Managing Director of CA Fastigheter AB hereby present the Annual Report and consolidated accounts. Contents Page Directors Report 1 Income statement 3 Balance sheet 4 Cash flow statement 6 Notes on the accounts 7 Signatures 24 If nothing specially is stated, the amounts is accounted in thousands Swedish kronor. The information in brackets refer to previous year. and refer to the Swedish original of the Annual Report for 2010.
DIRECTORS REPORT Information about the operations The Groups operations consists of property management and trading of properties. The management has mainly been carried on in Kalmar, Karlskrona, Borås, Växjö, Jönköping, Stockholm and northeast of Skåne. Similar operations is also carried on in Berlin in Germany, St Petersburg in Russia and in Tallin and Narva in Estonia. The profit after financial items for the year totals MSEK 82.5 (238.7). The profit of the year contents profit on property sales at the amount of MSEK 6.2 (31.8). There are no items affecting comparability included in the profit of the year (MSEK 0). Foreign branch office The operations in Berlin is carried on through a swedish subsidiary. The services that needs to be procured for the operations is bought localy. Financial position and performance for the group Consolidated earnings for 2010 are good. The operation shows, despite a difficult external conditions in the form of cold weather and lots of snow, a solid performance. Demand for residential and commercial areas has remained strong and the interest rates has also in 2010 been beneficial. Compared with the previous year, profit from associated companies has decreased. Results of associated companies included in the previous year a major non-recurring item. Also results from other financial items has decreased compared to 2009. Overview key ratio year 2006-2010 2010 2009 2008 2007 2006 Rental income 432,347 423,543 0 407,836 395,360 Operating surplus 240,290 250,719 0 244,654 232,722 Gross profit or loss 200,414 223,625 187,120 201,518 201,518 Profit/loss other operations 4,789 4,523 0 3,895 3,202 Profit/loss after financial items 82,512 238,757 0 413,356 168,873 Equity ratio, % (=equity / total assets) 27.2% 28.7% 28.3% 36.3% 23.2% Cash flow -166,925-29,218-54,683 161,759 114,227 Occupancy - area % 93.1% 92.2% 96.1% 95.8% 94.4% Average interests on loan 31 Dec 4.11% 3.91% 4.16% 4.53% 4.33% The Group does not apply accounting recommendation according to International Financial Reporting Standards (IFRS) which result in that the group has not market valued the real estate holding. Significant events in the financial year During the year, major property acquisitions has been made in Växjö and Jönköping.The project operation in Lomma has got started on larger scale and a first stage townhouses has been completed. and refer to the Swedish original of the Annual Report for 2010. 1
Significant events after the closing of the financial year No for the group significant events have appeared after the closing of the financial year. Future progress The group will continue to manage and to enhance the existing property portfolio, real estate development for sale as well as for its own portfolio, and to develop the property holding through both acquisition and disposal. In addition, financial investment activities will be continued by both listed and unlisted companies. Ownership The company is a wholly-owned subsidiary to Claesson & Anderzén AB, Swedish registration number 556395-3701, registered office is Kalmar. Employees The group has had an average of 101 (95) employees during the year. Environment The group's environmental goals are constantly changing as previous goals are met and new environmental areas emerge. Generally, the enviromental goals involve the daily environmental consideration of the work done and in the development of property holdings. An enviromental goal has been set where an engaged employer should look at the environmental questions as an intergrated part of his/her daily task. Through the effective consideration of the enviroment a positive return is created in relation to the risks connected to the managed estates. Risk The group's total property holdings has got a positive letting of estates and the vacancy level has been low over an extended period of time. In the residential property holdings the vacancy degree at the end of year 2010 was approximately 2%. The diversification of tenants in the commercial property holding's is postive and therefore, the risks are well spread. A real-estate firm's single biggest cost is the interest expense and the market rate of interest can quickly change. The group has got a maintained financial policy which regulates the relationship between completely floating interest rates and restricted interest rates. The policy also regulates the distribution between lenders and the overdue structure of the liability portfolio. All of the options and securities purchasing occur through the underlying liability portfolio. Proposed appropriation of profits Profit brought forward 59,371,564 Profit for the year -3,238,475 SEK 56,133,089 The Board propose that the profits are appropriated as follows: divided to the shareholders - carried forward 56,133,089 SEK 56,133,089 Consolidated shareholders' equity, as stated in the Consolidated Balance Sheet, is SEK 1,159 million. The profit from the operations, and the Group's and Parent Company's financial status at the end of the financial year, are shown in the Income Statement and Balance Sheet that follow, as well as in the information contained in the Notes to the accounts. and refer to the Swedish original of the Annual Report for 2010. 2
INCOME STATEMENT Note Rental income 1 432,347 423,543 7,748 7,813 Operating costs 2-121,367-109,496-1,004-911 Maintenance costs, tenant adjustments -52,060-47,178-268 -246 Property tax -18,630-16,150-845 -352 Operating surplus 240,290 250,719 5,631 6,304 Depreciation, write-down 3-39,876-27,094-379 -377 Gross profit or loss 200,414 223,625 5,252 5,927 Property sales and project operations Property sales 4 6,273 31,886 17,837 - Project operations 5 20,207 7,627 6,628 11,143 Other operations Hotel operations 6,8,3 3,951 4,427 - - Conference and Event Operations 7.3 838 96 - - Profit/loss other operations 4,789 4,523 0 0 Management and administration costs 8, 9-46,889-43,484-9,300-9,220 Operating profit/loss 184,794 224,177 20,417 7,850 Financial items Profit/loss from shares in subsidiaries 10 1,157 60,268 20,953 193,743 Profit/loss from shares in associated companies11 2,278-6,559-348 1,414 Profit/loss on securities and receivables held as fixed assets 12 10,281 7,273 7,736 4,870 Interest income and similar items 13 1,210 21,901 26,318 48,264 Interest expenses -106,067-107,016-1,859-2,158 Other financial expenses 14-11,141 38,713-68,924-29,787 Total financial items -102,282 14,580-16,124 216,346 Profit/loss after financial items 82,512 238,757 4,293 224,196 Appropriations 15 4,911 3,266-3,818-7,633 Current tax 16-8,091-6,532 0 0 Deferred tax 16 328 3,396-3,713-3,389 Minority share -2,700-130 - - Net profit for the year 76,960 238,757-3,238 213,174 and refer to the Swedish original of the Annual Report for 2010. 3
BALANCE SHEET The Group The Parent Company Note 31 Dec 2010 31 Dec 2009 31 Dec 2010 31 Dec 2009 ASSETS Fixed assets Tangible fixed assets Investment properties 17, 33 3,457,374 3,080,162 46,013 46,392 Machinery and equipment 18 5,834 7,304 7-3,463,208 3,087,466 46,020 46,392 Financial fixed assets Shares and participations in subsidiaries 19, 34 - - 540,056 532,286 Proportions of associated companies 20, 35 32,187 29,909 8,710 9,059 Other shares and participations 21 8 8 - - Promissory note group company 22 195,022 195,022 195,022 195,022 Promissory note recievables 23 48,898 45,327 8,865 9,709 Other long-trem receivables 1,931 1,519 915 497 278,046 271,785 753,568 746,573 Total fixed assets 3,741,254 3,359,251 799,588 792,965 Current assets Stock Finished goods and goods for resale 24 1,072 1,075 0 0 Buildings held for resale Development properties 25, 36 205,239 158,115 14,430 15,117 Current receivables Accounts receivables 21,903 14,027 203 830 Receivables - parent company 106,812 30,010 41,169 - Receivables - subsidiaries - - 806,745 684,690 Receivables - other group companies - - 65,643 63,118 Prepaid tax 9,526 2,792 2,120 2,116 Other receivables 58,502 26,835 22,369 8,142 Prepaid expenses and accrued income 26 28,839 14,041 16,124 3,809 225,582 87,705 954,373 762,705 Current investments 27 102,033 107,623 93,882 96,805 Cash and bank balance 27 84,857 252,031 12,763 79,880 Total current assets 618,783 606,549 1,075,448 954,507 TOTAL ASSETS 4,360,037 3,965,800 1,875,036 1,747,472 and refer to the Swedish original of the Annual Report for 2010. 4
The Group The Parent Company Note 31 Dec 2010 31 Dec 2009 31 Dec 2010 31 Dec 2009 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 28 Restricted equity Share capital, 100.000 shares 10,000 10,000 10,000 10,000 Restricted reserves 17,558 23,985 2,134 2,134 27,558 33,985 12,134 12,134 Unrestricted equity Unrestricted reserves 1,082,500 863,673 59,371-153,803 Profit for the year 76,960 238,757-3,238 213,174 1,159,460 1,102,430 56,133 59,371 Total shareholders' equity 1,187,018 1,136,415 68,267 71,505 Minority share 14,366 11,027 0 0 Provisions Provisions for deferred tax 29 - - 65,992 62,279 Other provisions - 402 - - 0 402 65,992 62,279 Long-term liabilities Liabilities to credit institutions 30 2,886,911 2,643,638 20,714 47,015 Liabilities to parent compay 628 628 628 628 Liabilities to other group companies - - 100 100 Other liabilities 1,931 1,513 915 497 2,889,470 2,645,779 22,357 48,240 Current liabilities Liabilities to credit institutions 30 20,734 12,923 300 300 Accounts payable 65,450 37,218 754 1,068 Liabilities to parent compay - - - 32,408 Liabilities to subsidiaries - - 1,702,312 1,517,495 Tax liabilities 31 - - - - Other liabilities 107,109 58,608 742 2,381 Accrued expenses and prepaid income 32 75,890 63,428 14,312 11,796 269,183 172,177 1,718,420 1,565,448 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 4,360,037 3,965,800 1,875,036 1,747,472 PLEDGED ASSETS Floating charges 4,500 4,500 - - Property mortgages 3,026,333 2,764,921 27,420 26,020 Shares in subsidiaries 179,867 201,198 - - OTHER PLEDGES Shares in subsidiaries for group companies - - - - Deposited securities 9,531 2,552 1,801 2,072 Capital insurance for future pensions 1,931 1,513 915 497 CONTINGENT LIABILITIES Guarantees for group companies - - 1,983,902 1,889,312 Responsibility of partner in 14,383 16,542 14,383 16,542 partnership for these liabilities - - 966,504 873,417 and refer to the Swedish original of the Annual Report for 2010. 5
CASH FLOW STATEMENT The Group The Parent Company 31/12/2010 2009-12-31 31/12/2010 31/12/2009 Operating activities Operating profit/loss before financial items 184,794 224,177 20,417 7,850 Profit/loss from shares in subsidiaries - - 20,953 47,338 Profit/loss from shares in associated companies 2,278-6,559-348 1,414 Proft/loss other securities 10,281 7,273 7,736 5,870 Interest income 1,210 21,901 26,318 48,264 Interest expenses -106,067-107,016-1,859-2,158 Other financial items -11,141 38,713-68,924-29,787 No affect on cash flow Profit/loss on propery sales -6,273-31,886-17,837 - Write-down participation in associated companies - - - - Write-down long-term receivables - 1,000 - - Write-up / Write-down current investments 14,626-5,790 11,839-7,044 Exchange gains / losses 5,878 5,388 844-176 Depreciation 40,754 27,759 379 377 Tax paid -8,091-6,532 - - Cash flow from operating activities before working captial changes 128,249 168,428-482 71,948 Cash flow from working capital changes Increase/decrease in stock -47,121-24,499 687-8,720 Increase/decrease in current receivables -143,755-149,471-191,668 51,792 Increase/decrease in current investments -9,036 37,264-8,916 37,398 Increase/decrease in current liabilities 93,454-16,456 152,972-196,809 Cash flow from operating activities 21,791 15,266-47,407-44,391 Investing activities Investment in tangible fixed assets -535,223-155,327-7 -186 Investment in shares in subsidiaries - -48,301-66,815-51,437 Investment in participation in associated companies - -57,013 - - Sale of tangible fixed assets 52,159 67,944 17,887 - Sale of shares in subsidiaries 1,157 218,020-81,340 Sales of shares in associated companies - 195,022-138,009 Increase long-term receivables -9,215-95,143 - -52,746 Change in financial fixed assets - - 58,926-38,268 Cash flow from investing activities -491,122 125,202 9,991 76,712 Financing activities Amortization 297,897-73,356-25,883 926 Change in provisions -402 404 - - Received/paid group contribution 4,911 3,266-3,818-7,633 Paid dividend - -100,000 - -100,000 Cash flow from financing activities 302,406-169,686-29,701-106,707 Cash flow for the year -166,925-29,218-67,117-74,386 Exchange rate difference in cash and cash equivalents -249-121 - - Cash and cash equivalents at the beginning of the year 252,031 281,370 79,880 154,266 Cash and cash equivalents at the end of the year 84,857 252,031 12,763 79,880 and refer to the Swedish original of the Annual Report for 2010. 6
NOTES TO THE FINANCIAL STATEMENTS ACCOUNTING AND VALUATIONS PRINCIPLES The applied account- and valuations principles correspond to the Annual Accounts Act and the general advices of Swedish Accounting Standards Board. If nothing else appears the accounting principles are unchanged since the previous year. Consolidation The consolidated accounts has been drawn up according to acquisition accounting. This means that the assests and debts of the acquired subsidiaries is booked to the market value that the purchase sum of the shares has been based on. The remaining surplus value between the purchase sum and the acquired companies shareholders' equity is accounted as goodwill. Should the elimination process lead to a remaining negative value, this is booked as negative goodwill. In cases where there is no reason to have this negative goodwill it has been taken up as income. The Groups' shareholders' equity includes only the part of the subsidiaries shareholders' equity that has been additional after the acquisition. The consolidated accounts include the Parent Company and subsidiaries in which the Parent Company, directly or indirectly, owns more than 50%. As investment properties are depreciated at a rate of 1.0% group wise surplus value has been correspondingly depreciated. Companies acquired during the year is included in the consolidated account with amounts that refer to the period after the acquisition. The consolidated accounts have been drawn up in accordance with Redovisningsrådet's (the Swedish Financial Accounting Standards Council) recommendation, whereby untaxed reserves are eliminated on a Group basis and are classified as 73,7% restricted shareholders' equity and 26,3% deferred tax liability. The foreign subsidiary's annual report has been translated into Swedish kronor according to current method. This means that the income statement is translated to the average rate of the year whereas the balance sheet is translated to closing day rate. If the subsidiary is a integrated subsidiary the translation is done through the so called monetary - non-monetary method. This means that the monetary balance sheet items are translated to the closing day rate whilst the non-monetary balance sheet items are translated to the historical rate of exchange. The income statement is translated to the yearly average rate except the income statement items which are connected to non-monetary balance sheet items, eg. depriciation. Valuation and accounting of fixed assets Tangible fixed assets is accounted to original acquisition value after a reduction of depreciation according to plan. The real properties is accounted in the balance sheet as fixed assets, when the intention of the ownership and management is long-term. Accrued expenses at new- extended- or rebuilding of property is accounted in the balance sheet as work in progress in property until taken in operation. In accrued expenses the total direct expenses relating to respective object as well as expenses for employees is included. The interest expenses during the period of building is capitalized. Work regarding maintenance, steps of maintenance when rebuilding and adjustments for tenant is continuously carried as an expense in its entirety. Steps of maintenance that is value-adding is capitalized. To determine the estimated actual value, a valuation occur once a year. Estimated actual value means the most probable price at a sale in a normally functioning market, at a for the different types of properties normal time for sale. The progress of vacancy, required building-measures and from the market differing rental-level is taken in consideration at the assessment. On properties that at the valuation-occasion has a higher booked value than the estimated actual value, an individual consideration is made. In case the depreciation is estimated as permanent a write-down is made of the required amount. Financial fixed assets is accounted to original acquisition value after considering any demands for write-down. Depreciations In the income statement the result has been charged with depreciations "according to plan" on buildings, permanent equipments in building, land improvements and on machinery and equipment. Depreciations "according to plan" is based on the assets acquisition value and estimated economic life. The following depreciation period has been used: Building Value-added renovation Value-added tenant adaptation Land improvements Permanent equipment in building Machinery and equipment Intangible assets 100 years 10-40 years over the period of the contract 20 years 10-20 years 5 years 5-10 years and refer to the Swedish original of the Annual Report for 2010. 7
Valuation and accounting of current assets Current assets is accounted according to the lowest of costs or market. Receivables has been included at the amount at which the are expected to be received. Revenue recognition Rental income is distributed over a period of time in accordance with the rental agreements. This imply that rental paid in advance is accounted as prepaid rental income. Incomes from property sales is accounted at the time of contract. The accounting of income-taxes Deferred tax on the difference between booked value and written-down value is regarded, for example at indirect acquisition of properties through companies. Starting point is full tax, that is to say 26,3% of the difference between the groups booked value and written-down value. Exception is made in case the taxvaluation has been an essential part of the deal and a documented relation between the purchase sum and the valuation of the deferred tax exists. The deferred tax liabilities in the group's balance sheet have decreased, in accordance with the group's tax allowance deficiency, to a sum that corresponds to previous allowances of the deferred tax where the entry has been an appreciation of the property value. The group's total tax allowance deficieny amounts to MSEK 973. Derivative The company possess interest derivatives for the account of subsidiaries, the result from these is accounted directly in the subsidiaries. Signed derivatives of CA Fastigheter AB that are credited or charged to subsidiaries amounts to MSEK 1,946 per 31 Dec 2010. In the cases of opening agreements being redeemed before the contracted time the revenue, or cost, is directly accounted for. If an under-/over estimation value is used to obtain conditions that diverge from the market value in a new agreement, it will be seen as two seperate transations. The results from the first agreement is taken up as income, as described above, and the difference between what has been obtained/paid for the new agreement is distributed over the duration of the new agreement. Financial instrument and securities All investments is valued to acquisition value the first time they are accounted in the Balance Sheet. The acquisition value correspond to the actual value of the payment including expenses relating to the acquisition. After that the investments is accounted to the lowest of acquisition value and actual value. The companies possession has been valued according to the portfolio valuation method. Receivables and debts in foreign currency Receivables and debts in foreign currency has been translated into closing day rate. Exchange gain and exchange loss on the receivables and debts of the business is provided the equity capital. Gain and loss on financial receivables and debts is accounted as financial items. Foreign branch office The Groups' branch office in Berlin has been classified as an foreign entity, implying that translation of the complete balance sheet is made in closing day rate and the income statement in average rate. The translation difference is accounted direct to the equity. Cash flow statement The cash flow statement is prepared according to indirect method. The accounted cash flow only comprise transactions that causes payment. Besides cash and bank balance. Information about the Group The company is a wholly-owned subsidiary to Claesson & Anderzén AB Swedish registration number 556395-3701, registered office is Kalmar, which prepares consolidated accounts for the largest group. and refer to the Swedish original of the Annual Report for 2010. 8
Note 1 Rental income allocated on different types of premises Commercial area 1 244,701 236,911 7,688 7,741 Garage, storehouse 3,590 3,491 2 2 Housing 179,931 173,585 - - Other 4,125 9,556 58 70 Total 432,347 423,543 7,748 7,813 1 Internal rental income from Kalmarsalen konferens- och Evenemang AB to Byggnadsfirma Claesson & Anderzén HB is not eliminated as they are engaged in various operations. Note 2 Operating costs Energy, fuels, water, waste 76,600 71,908 547 549 Property operation costs 1 43,889 36,743 457 362 Rent for a leasehold site 878 845 - - Total 121,367 109,496 1004 911 1 Property operation cost mainly consists of personnel costs, material and contract work in form of land area care, snowploughing, cleaning etcetera. Note 3 Note 4 Note 5 Depreciation Building 36,854 34,350 379 377 Permanent equipment in building 1,162 1,134 - - Sub-total 38,016 35,484 379 377 Write-down building 32 - - - Sub-total 32 0 0 0 Machinery and equipment 1,828 1,950 - - Sub-total 1,828 1,950 0 0 Total 39,876 37,434 379 377 Badwill Resolution negative goodwill - -10,340 - - Total 0-10,340 0 0 Hotel operations Machinery and equipment 837 665 - - Total 837 665 0 0 Conference and Event Operations Machinery and equipment 41 - - - Total 41 0 0 0 Property sales Sale price 52,159 67,944 17,887 - Booked value -45,886-36,058-50 - Total 6,273 31,886 17,837 0 Project operations Sale price 48,114 45,214 8,300 14,300 Booked value -27,907-37,587-1,672-3,157 Total 20,207 7,627 6,628 11,143 and refer to the Swedish original of the Annual Report for 2010. 9
Note 6 Note 7 Profit/loss hotel operations The subsidiary Majo Hotellinvest AB conducts hotel operations at Västerviks Stadshotell. Hotel operations 2010 2009 Net turnover 29,385 28,077 Costs of operations -24,597-22,889 Depreciation, hotel operations -837-665 Total 3,951 4,523 Profit/loss conference and Event Operations The subsidiary Kalmarsalen Konferens och Evenemang AB runs operations at KalmarSalen since December 2009. 2010 2009 Net turnover 18,006 122 Costs of operations 1-17,127-26 Depreciation of operations -41 - Total 838 96 1 Internal rental income from Kalmarsalen konferens- och Evenemang AB to Byggnadsfirma Claesson & Anderzén HB is not eliminated as they are engaged in various operations. Note 8 Management and administration costs Personnel costs 30,780 29,168 4,902 5,280 Invoiced administration -2,237-2,694 - -202 Remunerations to audit 1 1,261 1,035 - - Marketing 2,545 2,128 404 283 Other expenses 14,540 13,847 3,547 3,413 Other expenses from group companies - - 447 446 Total 46,889 43,484 9,300 9,220 1 Remunerations to audit The Group The Parent Company Audit fee Ernst & Young 1,261 1,035 - - Other assignments than audit assignment - - - - Total 1,261 1,035 0 0 The audit fee is accounted in the subsidiary Byggnadsfirma Claesson & Anderzén HB, where the administration is handed. Note 9 Employees, personnel costs and other remuneration Average number of employees 2010 2009 Number of Of whom Number of Of whom employees women employees women The Parent Company Kalmar 2-2 - Total 2 0 2 0 The Group Borås 4 1 4 1 Jönköping 7 1 8 2 Kalmar 35 16 29 10 Karlskrona 6 1 7 2 Växjö 5 1 5 1 Osby 3 1 3 1 Stockholm 3-4 1 Lomma 1-1 - Västervik 28 19 28 19 Russia 3 1 2 1 Estonia 6 6 3 - Total 101 47 94 38 and refer to the Swedish original of the Annual Report for 2010. 10
Note 9 contd. Salaries, other remuneration and payroll overheads Salaries and other remuneration 36,876 33,598 2,743 2,798 Payroll overheads 1 16,419 14,311 2,109 2,163 1 This item includes pension costs of KSEK 4,985 (4,180). KSEK 1,112 (1,117) relates to the Group's Board of Directors and managing Director. Of the Parent Companies pension costs KSEK 1,112 (1,117), KSEK 1,112 (1,117) relates to the Group's Board of Directors and managing Director. Salaries and other remuneration for Board Members etc. and employees Board of Director and Managing Director 3,043 3,098 2,743 2,798 Other employees 33,833 30,500 - - Note 10 Profit/loss from shares in subsidiaries Profit/loss sales shares is subsidiaries - - 20,953 47,338 Anticipated dividend - - - 146,405 Profit/loss sales shares in subsidiaries to group compay 1,157 60,268 - - Total 1,157 60,268 20,953 193,743 In the consolidated income statement, sales of shares in subsidiaries that have properties is accounted as property sales. Note 11 Profit/loss from shares in associated companies Change in associated companies 2,278 1,413-348 1,414 Reversal of write-down - 2,161 - - Profit/loss sales shares in associated companies to group compay - -10,133 - - Total 2,278-6,559-348 1,414 Note 12 Profit/loss on securities and receivables held as fixed assets Interest income 9,210 8,667 6,665 5,620 Interest income from group companies 5,834-5,834 644 Write-down long-term receivables - -1,000 - -1,000 Reserve for receivables -4,763-394 -4,763-394 Total 10,281 7,273 7,736 4,870 and refer to the Swedish original of the Annual Report for 2010. 11
Note 13 Interest income and similar items Interest income 1,462 4,957 875 3,349 Exchange rate difference, inter-company transactions - - -9,496-2,668 Exchange rate difference, others -5,878-5,388-130 Interest income from group companies 3,438 19,199 32,968 44,704 Interest subsidy 217 385 - - Dividend on shares 1,971 2,748 1,971 2,749 Total 1,210 21,901 26,318 48,264 Note 14 Other financial expenses Net income sale security 6,028 38,772 6,028 38,771 Interest expenses from group companies -19-3,373-63,096-67,945 Value adjustment shares and other securities -14,626 5,790-11,839 7,044 Other financial expenses -2,524-2,476-17 -7,657 Total -11,141 38,713-68,924-29,787 Note 15 Appropriations Paid group contribution - - -28,199-33,218 Received group contribution 4,911 3,266 24,381 25,585 Total 4,911 3,266-3,818-7,633 Note 16 Tax expense for the year The difference between the company's tax expense and the tax expense based on current tax rate, consists of the following components. Profit/loss before tax 87,423 242,023 475 216,563 Tax according to current tax rate -22,992-63,652-125 -56,956 Revaluation of loss carryforwards 11,810 32,293-7,997 7,918 Tax effects of incomes/expenses which is untaxable Dividend from group company - - - 38,505 Adjustment sale of estate - - - 6,943 Adjustment sale of shares 4,566 15,850 4,691 - Resolution negative goodwill - 2,719 - - Unspecified amount -1,147 9,653-282 202 Total -7,763-3,136-3,713-3,388 The current tax rate in the company is 26,3% (28%) and refer to the Swedish original of the Annual Report for 2010. 12
Note 17 Investment properties Building and land Opening balance acquisition value 3,527,269 3,399,982 51,033 51,033 Purchase 431,760 108,180 - - Completed projects 99,654 79,796 - - Translation difference -75,306-29,546 - - Sales -59,060-31,143 - - Closing balance acquisition value 3,924,317 3,527,269 51,033 51,033 Openings balance depreciation -452,064-414,618-4,450-4,450 Acquired accumulated depreciation -282-4,320 - - Sales 14,120 1,200 - - Translation difference 2,091 24 - - Write-down of the year -32 - - - Depreciation of the year -36,854-34,350 - - Closing balance depreciation -473,021-452,064-4,450-4,450 Closing residual value "according to plan" 3,451,296 3,075,205 46,583 46,583 Permanent equipment in building Opening balance acquisition value 81,643 76,452 - - Purchase 2,553 5,411 - - Translation difference - -13 - - Sales -494-207 - - Closing balance acquisition value 83,702 81,643 0 0 Openings balance depreciation -76,686-70,620 - - Acquired accumulated depreciation - -5,000 - - Disposal - 13 - - Translation difference 224 55 - - Depreciation of the year -1,162-1,134 - - Closing balance depreciation -77,624-76,686 0 0 Closing residual value "according to plan" 6,078 4,957 0 0 Total residual value "according to plan" 3,457,374 3,080,162 46,583 46,583 Total fiscal residual value 2,201,327 2,105,432 34,324 34,324 Tax assessment value Buildings 2,441,715 2,012,815 32,093 33,393 Land 706,547 559,399 12,736 11,758 Total 3,148,262 2,572,214 44,829 45,151 Note 18 Machinery and equipment 2009 2009 2010 2009 Opening balance acquisition value 35,287 178,989 - - Purchase 1,256 1,837 - - Translation difference -28 11 - - Company-purchase - 201 - - Sale and disposal -36-145,751 - - Closing balance acquisition value 36,479 35,287 0 0 Opening balance depreciation -27,983-26,336 - - Sale and disposal 29 1,036 - - Translation difference 16 5 - - Company-purchase - -73 - - Depreciation of the year -1,828-1,950 - - Depreciation of the year in other operations -878-665 - - Closing balance depreciation -30,644-27,983 0 0 Closing residual value "according to plan" 5,835 7,304 0 0 and refer to the Swedish original of the Annual Report for 2010. 13
Note 19 Shares and participations in subsidiaries Opening balance acquisition value - - 575,480 1,296,100 Shareholders' contribution paid - - 66,765 - Purchase - - 50 906 Reclassified from associated companies - - 0 102 Change in value subsidiary shares - - 20,953 47,338 Deposit / withdrawal - - -74,939-10,980 New share issue - - - 50,531 Reduction of share capital - - - -648,320 Sales - - -5,059-160,196 Closing balance acquisition value 0 0 583,250 575,480 Opening balance write-down - - -43,194-122,050 Sales - - - 78,856 Closing balance write-down 0 0-43,194-43,194 Closing residual value "according to plan" 0 0 540,056 532,286 Note 20 Shares and proportions of associated companies Opening balance 29,909 174,577 9,059 145,756 Reclassification - -101 - -102 Purchase - 57,013 - - Change in value 2,278 3,575-349 1,414 Sales - -205,155 - -138,009 Closing balance acquisition value 32,187 29,909 8,710 9,059 Closing residual value "according to plan" 32,187 29,909 8,710 9,059 Note 21 Other shares and participations Opening balance 8 1,008-1,000 Write-down - -1,000 - -1,000 Closing balance 8 8 0 0 Closing residual value "according to plan" 8 8 0 0 Not 22 Promissory note recievables subsidiaries Opening balance 195,022-195,022 41,900 Sales subsidiary promissory - - - -41,900 Loans to group company - 195,022-195,022 Closing balance 195,022 195,022 195,022 195,022 Closing residual value "according to plan" 195,022 195,022 195,022 195,022 Note 23 Promissory note receivables Opening balance acquisition value 45,327 144,884 9,709 109,909 Lending 31,765 13,276-5,160 Exchange rate difference -5,232-1,841-844 176 Sales - -58,750 - -58,750 Amortization -22,962-52,242 - -46,786 Closing balance 48,898 45,327 8,865 9,709 Closing residual value "according to plan" 48,898 45,327 8,865 9,709 and refer to the Swedish original of the Annual Report for 2010. 14
Note 24 Stock The stock consists of goods used in the hotel operation and the conference and event operations. Note 25 Development properties Opening balance acquisition value 158,115 83,313 15,117 6,397 Purchase - 11,000-11,000 Project in progress 76,207 60,393 984 304 Company-purchase - 50,498 - - Adjusted acquisition value - -406 - - Translation difference -2,960-1,233 - - Reclassification - - - - Sale and disposal -26,123-45,450-1,671-2,584 Closing balance acquisition value 205,239 158,115 14,430 15,117 Closing residual value "according to plan" 205,239 158,115 14,430 15,117 As development properties has been valued individually no depreciation "according to plan" has been made. Tax assessment value Buildings 6,168 7,968 2,250 4,050 Land 21,823 32,723 12,252 23,152 Total 27,991 40,691 14,502 27,202 Note 26 Prepaid expenses and accrued income Prepaid insurance expenses 676 1,297 26 41 Prepaid interest income 7,009 134 6,964 - Suppliers' invoices distributed over period of time 1,368 2,330 8 7 Accrued rental income 720 - - - Accrued interest income 15,104 7,266 9,126 3,761 Other accruals 3,962 3,014 - - Total 28,839 14,041 16,124 3,809 Note 27 Current investments / Cash and bank Book Market Book Market value value value value Listed shares 87,846 87,846 83,277 83,277 Other shares 4,172 4,172 590 590 Interest-bearing paper 10,015 10,015 10,015 10,015 Cash and bank balance 84,857 84,857 12,763 12,763 Total 186,890 186,890 106,645 106,645 In addition to the above liquidity there is a non-utilized bank overdraft of MSEK 56 (97). Note 28 Shareholder's equity Share Restricted Unrestricted The Group capital reserves reserves Total Opening balance 10,000 23,985 1,102,431 1,136,416 Displacement between unrestricted and restricted shareholders' equity - -6,427 6,427 0 Translation difference - - -26,358-26,358 Profit for the year - - 76,960 76,960 Closing balance 10,000 17,558 1,159,460 1,187,018 and refer to the Swedish original of the Annual Report for 2010. 15
Note 28 Share Restricted Unrestricted contd. The Parent Company capital reserves reserves Total Opening balance 10,000 2,134 59,371 71,505 Profit for the year - - -3,238-3,238 Closing balance 10,000 2,134 56,133 68,267 Note 29 Deferred taxes Deferred taxes due to loss carry forward 144,481 139,325 - - Taxes recoverable 144,481 139,325 0 0 Deferred taxes due to untaxed reserves -5,488-7,812 - - Deferred taxes due to land and buildings -138,993-131,513-65,992-62,279 Taxes liability -144,481-139,325-65,992-62,279 Total 0 0-65,992-62,279 Note 30 Liabilities to credit institutions The loan portfolio has the following composition: The Group Total loan KSEK 2,907,645 (2,656,561). Amortization for 2011, KSEK 20,734 (12,923), has been reported as s current liability. 2010 2009 Loan Average Loan Average Renewal year amount interest rate amount interest rate 2010 591,943 1.53% 2011 951,179 2.97% 324,173 4.38% 2012 54,866 3.50% 263,845 4.03% 2013 126,600 3.98% 276,600 4.15% 2014 350,000 4.51% 150,000 5.07% 2015 300,000 4.48% 150,000 4.56% 2016 325,000 4.78% 200,000 4.73% 2017 300,000 4.89% 300,000 4.90% 2018 400,000 4.92% 400,000 4.95% 2019 100,000 5.15% Total 2,907,645 4.11% 2,656,561 3.91% The agreed derivative instruments has been taken in consideration at the calculation of average interest rate and renewal year. The bank overdraft has been classified as a long-term liability as it is included in the groups' long-term financing of the operation. The granted bank overdraft facility amounts to 200 MSEK of which 144 MSEK (103) is utilized. Liabilities to credit institutions The Parent Company Total loan KSEK 21,014 (47,315). Amortization for 2011, KSEK 300 (300), has been reported as s current liability. 2010 2009 Loan Loan Renewal year amount amount 2011 21,014-2010 - 47,315 Total 21,014 47,315 Note 31 Taxes The company has saved loss carried forward amounting 42.2 MSEK. The Group has saved loss carried forward amounting 973 MSEK. and refer to the Swedish original of the Annual Report for 2010. 16
Note 32 Accrued expenses and prepaid income Prepaid rental income 31,500 30,041 646 584 Accrued interest expenses 7,789 9,597 5,006 6,826 Accrued interest expenses, premium interest swap 7,398 3,158 7,398 3,158 Accrued personnel costs 9,866 8,646 1,214 1,177 Accrued audit fee 650 650 - - Other accrued expenses 18,687 11,335 48 51 Total 75,890 63,427 14,312 11,796 Note 33 Investment properties Company/ Leasable area in m 2 Tax (KSEK) Property name Address Municipality Total Housing Premises assessment CA Fastigheter AB Plåtslagaren 5 Verkstadsgatan 3 Växjö 3,500-3,500 11,262 Våglängden 9 Vretavägen 13 Huddinge 4,780-4,780 17,500 Överkastet 5 Porfyrvägen 2 Jönköping 5,771-5,771 16,067 Fastighets AB Sergeanten Kläckeberga 10:10 Kalmar - - - 800 Startmotorn 1 Kalmar - - - 1,800 KB CA i Upplands-Väsby Glädjen 1:1 Upplands- - - - - Hammarby-Smedby 2:20 Upplands- - - - - Kapellet 1:21 Upplands- - - - - Fastighets AB Fanjunkaren Antilopen 12 Dahléngatan 3 Kalmar 1,532-1,532 3,643 Antilopen 26 Polhemsgatna 17 Kalmar 2,246 2,246 4,376 KB Majo 3 Hackspetten 11 Frejagatan 1-3 Bromölla 735 720 15 2,672 Liljan 21 Hagagatan 11-13 Bromölla 627 627-2,410 Maskrosen 22 Hermansengatan 1-7 Bromölla 1,084 1,084-4,528 KB Majo 5 Linet 8 Lybecksvägen 2-36 Kalmar 732 732-5,356 KB Majo 7 Gravören 17 Verkstadsgatan 14 A Kalmar 900-900 2,969 HB Förvaltarna Kajan 1 Smålandsgatan 15 Kalmar 1,486 1,486-13,188 Fastighets AB Juvelen Juvelen 3 Brunnsgatan 20 Jönköping 1,045-1,045 6,779 Nötskrikan 8 Formkullegatan 3 A-B Jönköping 945 930 15 7,565 Överdraget 1 Bangårdsgatan 2 Jönköping - - - 724 Handels AB i Ousby Ringbrynjan 1 & 2 Göingegatan 14, 16 Hässleholm 2,126 2,072 54 13,979 Claesson & Anderzén Hotellfastighets AB Magistraten 5 Ronnebygatan 43 Karlskrona 1,314 478 836 12,129 CA i Växjö AB Tvinnaren 3 Arabygatan 13 Växjö 8,390-8,390 56,320 Tvinnaren 4 Arabygatan 9 Växjö 9,573-9,573 25,346 Tvinnaren 5 Arabygatan 11 Växjö 2,614-2,614 18,355 Svetsaren 3 Smedjegatan 4 Växjö 3,500-3,500 29,200 Svetsaren 5 Storgatan 70 Växjö 2,713-2,713 23,640 Målerifirma Bengt Wall HB Hantverkaren 22 Hantverksgatan 47 Karlskrona 1,007 917 90 7,802 Kombinationsbygg Kalmar KB Pumpen 5 Grindängsvägen 2 Kalmar 665-665 1,464 Fastighets AB Fölungen Residenset 29 Kvarngatan 4 Västervik 991 749 242 4,636 KB Majo 10 Armbåga 3 Ålgårdsvägen 5-23 Borås 20,532-20,532 211,200 and refer to the Swedish original of the Annual Report for 2010. 17
Note 33 Investment properties contd. Company/ Leasable area in m 2 Tax (KSEK) Property name Address Municipality Total Housing Premises assessment Fastighets AB Fojobo Linet 6 Wismarsvägen 8-10 Kalmar 1,750-1,750 3,771 Varvsholmens Fastighets AB Mallvinden 1 Bredbandet 2 Kalmar 1,318-1,318 1,968 CA Industrifastigheter i Jönköping AB Ädelmetallen 3 Kabelvägen 12 Jönköping 2,827-2,827 8,897 Flundrahällen i Kalmar Furan 5 (1/2) Vegagatan 9 Kalmar 903 903-8,017 Hälleflundran 1 (1/3) Erik Dahlbergsväg 9 Kalmar 977 824 153 7,388 Simpan 10 Magistratsgatan 10 Kalmar 718 568 150 5,366 Simpan 11 (1/2) Magistratsgatan 3 Kalmar 330 330-2,753 Spättan 1 (1/6) Kämnärsgatan 8 A-B Kalmar 399 385 14 2,974 FastAm i Norrköping KB Amerika 3 Lindövägen 65 Norrköping 48,472-48,472 103,491 Sylten 4:7 Endast mark Norrköping 0 CA i Jönköping AB Hymnen 4 Trädgårdsgatan 14 A-E Jönköping 862 862-7,771 Härolden 4 Oxtorgsgatan 14 Jönköping 2,530 2,530-24,678 Knapen 1 Klostergatan 41-43 Jönköping 2,974 2,481 493 24,766 Myran 12 Sjöbogatan 11-29 Jönköping 6,741 6,726 15 61,761 Möckeln 23 Brahegatan 59-61 Jönköping 3,165 2,900 265 27,424 Jönköpings Industrifastigheter 1 AB Flahult 21:13 Kylvägen 7 Jönköping 6,263 6,263 17,251 Ädelkorallen 14 Bultvägen 8 Jönköping 2,582 2,582 5,509 Ättlingen 2 Verktygsvägen 5 Jönköping 7,620 7,620 19,476 Ättlingen 3 Verktygsvägen 13 Jönköping 2,617 2,617 5,825 Öronlappen 2 Bangårdsgatan 7 Jönköping 1,305-1,305 7,286 Jönköpings Industrifastigheter Ädelkorallen 6 AB Ädelkorallen 6 Bultvägen 1 Jönköping 2,355-2,355 10,594 Jönköpings Industrifastigheter Ädelkorallen 6 AB Öronskyddet 6 Granitvägen 3 Jönköping 2,936-2,936 6,580 Jönköpings Industrifastigheter Fridhem AB Ämbaret 4 Fridhemsvägen 25 Jönköping 1,393-1,393 3,003 CA i Huskvarna AB Apeln 29 Smedjeg. 36-38 Jönköping 1,390 977 413 12,516 Ekorren 1 Eriksgatan 10-34 Jönköping 9,982 9,902 80 60,882 Kärnan 7 Myntgatan 11-13 Jönköping 3,935 3,380 555 33,151 Raststället 1 Dalviksringen 20 Jönköping 2,630-2,630 16,200 Rosengård 15&16 Rosenborgsg 22-24 Jönköping 3,407 1,359 2,048 22,552 Rustmästaren 2 Trädgårdsg 10-24 Jönköping 4,128 4,128-34,600 Örten 7 Herkulesvägen 16 Jönköping 1,668-1,668 10,810 CA Tremurare AB Hägern 1 Barnarpsgatan 36 Jönköping 2,648 862 1,786 28,516 CA Bostäder i Växjö AB Blända 11 Sandgärdsg 16 Växjö 1,654 740 914 10,137 Flodhästen 4 Rådjursvägen 9 Växjö 5,280-5,280 10,942 Fries 9 Storg 25-27 Växjö 2,356 707 1,649 20,007 Klockbojen 7 Systratorpsvägen 14 Växjö 5,369-5,369 11,364 Stenbock 1 Bäckg 22 A-C Växjö 2,341 2,194 147 18,710 Torven 5 Sandv 2 Växjö 2,329-2,329 13,087 Tullen 8 Storg 30 Växjö 4,153 1,102 3,051 35,987 Ödman 10,12 13 V:a Esplanaden 1 Växjö 3,306 2873 433 19,242 Spetsamossen KB Björnen 10 V:a Esplanaden 19-27 Växjö 8,359 8359-73,137 CA Sankt Petersburg LLC 5kp-11, Korabselki Mark St Petersburg - - - - and refer to the Swedish original of the Annual Report for 2010. 18
Note 33 Investment properties contd. Company/ Leasable area in m 2 Tax (KSEK) Property name Address Municipality Total Housing Premises assessment CA Real Estate AB Albrecht Strasse 115 Berlin 4,158 3,788 370 Bozener Strasse 2 Berlin 1,337 1,337 - Clauertstrasse Berlin 5,009 5,009 - Fregestrasse 35 Berlin 1,456 1,390 66 Handjerystrasse 14 Berlin 1,485 1,485 - Handjerystrasse 15 Berlin 1,204 1,088 116 Heimstrasse 10 Berlin 2,143 2,079 64 Kluckstrasse 25 Berlin 2,635 2,497 138 Lauterstrasse 28 Berlin 2,444 2,444 - CA Entreprenad AB Lomma 25:92 Brohusvägen 2A Lomma 102 102 Narva Gate OU Joala 17, 18 50% Narva 1,000-1,000 - Joala 20, 24 50% Narva 1,140-1,140 - Joala 21 50% Narva 66,199-66,199 - Joala 23 50% Narva 60,820-60,820 - Joala 28 50% Narva 147 147 - Joala 40, 42 50% Narva 4,001-4,001 Kose 12, 16 50% Narva 1,423-1,423 - Kulgu 8 50% Narva 1,235-1,235 - Kulgu sadam 3 50% Narva 227-227 - Puuvilla 1,3,5 Narva 0 0 - Spordi 2, 6 50% Narva 2,628-2,628 - Tehase 3 50% Narva 4,457-4,457 - Tehase 4, 6 50% Narva 35,095-35,095 Letona Properties Ou Narva mnt 1 Tallin 9,000-9,000 - Paneeli 2 Tallin 8,587 8,587 - Peterburi Tee 64 A Endast mark Tallin - - - - Pärnu Maantee 4 / Tallin 40-40 - Suur Söjamäe tn35 Tallin 7,064-7,064 - Visase 12 Tallin 3,700-3,700 - Byggnadsfirma Claesson & Anderzén HB Bokbindaren 2 Gullbernavägen 2 Karlskrona 4,400-4,400 7,712 Borgehage 1:73 Borgehage by Borgholm 75 75-786 Byxelkrok 1:1 Byxelkrokv 89 Böda 0 158 Dryaden 1 Tullbron 1 Kalmar 552-552 6,062 Fallskärmen 2 Flygplatsvägen 21 Kalmar 1,352-1,352 3,117 Furan 5, 50% Vegagatan 9 Kalmar 903 903-8,017 Fårtickan 1 Tegelviksvägen 9 Kalmar 2,294 2,148 146 14,219 Fårtickan 4 Nyslottsgatan 1-3 Kalmar 3,053 2,755 298 18,271 Guldsmeden 11 Storgatan 9 Kalmar 384-384 3,988 Gösen 11 Wernskjöldsgatan 12A-C Kalmar 1,273 1,234 39 11,142 Hackspetten 7 Tegnérgatan 4, 6 Kalmar 2,061 1,978 83 17,645 Hattmakaren 3 Storgatan 10 Kalmar 1,002 659 343 8,774 Hattmakaren 13 Larmgatan 14 Kalmar 1,852 961 891 14,764 Herden 1 Arvid Västgötesg 1-3 Kalmar 3,729 3,202 527 19,924 Jungfrun 2 Banérgatan 3-5 Kalmar 2,767 1,677 1,090 12,037 Jungfrun 3 Riddaregatan 12,14,16 Kalmar 3,696 3,631 65 20,471 Kajan 13 Linnégatan 14 Kalmar 1,450 1,440 10 12,635 Kajan 6 Linnégatan 16 A-C Kalmar 1,428 1,428-13,972 Kakelmakaren 1 S:a Långg. 77, 79A-H Kalmar 2,920 2,851 69 23,876 Kamelen 6 V:a Kyrkogatan 13 Borgholm 2,040 841 1,199 8,263 Kastbyn 1 Valhallavägen 8 Karlskrona 807 762 45 6,121 Klyvaren 6 Sparregatan 11 Kalmar - - - 1,178 Klyvaren 12 Gripgatan 6-12 Kalmar 2,186 2,186-19,400 Kvarnen 12 Skeppsbrogatan 49 Kalmar 5,542-5,542 - Landshövdingen 2 S:a Långgatan 20 Kalmar 1,355 1115 240 11,466 Landshövdingen 15 Ölandsgatan 9-11 Kalmar 1,082 338 744 4,116 Loke 24 Rådhusgatan 11 Karlskrona 7,223 1,370 5,853 57,652 Loke 25 Borgmästargatan 20 Karlskrona 1,175 683 492 10,791 Lärlingen 6 Strömgatan 11-15 Kalmar 8,303-8,303 75,400 Mästaren 26, 80% Fiskaregatan 18 Kalmar 737 508 229 6,619 Nordstjärnan 32 Ronnebygatan 52 Karlskrona 271-271 4,072 Nordstjärnan 37 St Möllebacksgränd 1 Karlskrona 332-332 1,677 Rockan 10 Norra vägen 40-42 Kalmar 3,472-3,472 25,270 Safiren 1 Dr Kristianas v 2-4 Kalmar 7,250 7,173 77 44,576 Sillen 1 Borgmästareg. 12 Kalmar 282-282 649 Skydraget 1 & 2 Snapphanev. 10-12 Karlskrona 1,581 1,566 15 12,140 and refer to the Swedish original of the Annual Report for 2010. 19