THE ERNST ROSÉN GROUP

THE ERNST ROSÉN GROUP

ERNST ROSÉN ER GROUP er group Ernst Rosén manages and develops real estate in the central areas of Gothenburg, Alingsås and Lerum. Nääs Fabriker a highly-regarded business centre comprising offices, shops and a conference and design hotel set in a historic works environment is an outstanding part of the company s portfolio. Ernst Rosén is also involved in construction through its wholly-owned subsidiary, Flodén Byggnads AB. In addition, Ernst Rosén owns Aranäs AB, the biggest single property owner in Kungsbacka, in partnership with Ivar Kjellberg Fastighets AB. Ernst Rosén s operations are founded on long-term return on investment and customer satisfaction. New thinking and creativity shall permeate not only the company s property management activities, but also the investment programmes in which it is involved. The company s story started in back in 1952 when master builder Ernst Rosén began to build properties in his own name. Today, property development is conducted by the Ernst Rosén Project Development subsidiary, whose mission is to develop sites and premises for the construction of both rental properties and condominiums. Through its Ernst Rosén Invest subsidiary, Ernst Rosén also engages in other development projects by investing in both skills and resources in different activities. Including its 50 percent holding in Aranäs, Ernst Rosén owns a total of 104 properties, 45 through Aranäs. These properties represent an estimated value of SEK 5,2 billion to the Group. Active in the industry for more than 60 years, Ernst Rosén is a solidly established company owned by the fourth generation of the family. REAL ESTATE Ernst Rosén s core business is to own and manage real estate. INVESTMENTS Ernst Rosén invests in diverse operations to assist development through financial strength and active ownership. ARANÄS Ernst Rosén contributes actively through its half-ownership of Aranäs AB, the dominant property owner in Kungsbacka. BUILDING ACTIVITIES Ernst Rosén conducts building activities through its subsidiary, Flodén Byggnads AB. NÄÄS FABRIKER Ernst Rosén owns and manages the Nääs Fabriker business complex, which includes a hotel and conference centre together with commercial premises and shops. PROJECT DEVELOPMENT Ernst Rosén develops sites and premises for construction projects through its subsidiary, Ernst Rosén Project Development AB. 2

ERNST ROSÉN VISION AND BUSINESS PHILOSOPHY vision and business philosophy ernst rosén's vision "Ernst Rosén shall, as a company, be a role model in every market in which it operates." ernst rosén's business philosophy "Ernst Rosén shall, through dedication, courage and smart solutions, continually develop its property ownership and other activities with the consistent goal of achieving quality results for its customers, the company itself and its owners."

ERNST ROSÉN GEOGRAPHY AND PORTFOLIO geography and portfolio TOTAL AREA: 354 500 m 2 241 500 m 2 area, residential 113 000 m 2 area, commercial 3 435 rental apartments incl. 50 % of our stock in Kungsbacka. alingsås 15 commercial premises 26 000 m 2 total area 16 500 m 2 residential area 9 500 m 2 commercial area 215 rental apartments gothenburg 37 commercial premises 186 500 m 2 total area 145 500 m 2 residential area 41 000 m 2 commercial area 2 121 rental apartments business park nääs fabriker 14 500 m 2 commercial area including 4 500 m 2 of which concerns hotel. lerum 6 commercial premises 12 000 m 2 total area 4 500 m 2 residential area 7 500 m 2 commercial area 57 rental apartments kungsbacka 45 commercial premises 231 500 m 2 total area 150 500 m 2 residential area 2 085 hyreslägenheter 81 000 m 2 commercial area of which 35 000 m 2 concerns Kungsmässan shopping center. 4

ERNST ROSÉN HISTORY history Ernst Rosén founded a building company in 1952. Still a family-owned company four generations on, it continues to develop and broaden its operations. Ernst Rosén built 45 apartments of its own during the first 30 years of its existence. Most of these are still in the company s ownership. In the 1960s and 1970s, as one of the biggest building contractors in Gothenburg, Ernst Rosén took part in the Swedish government s Million Programme, whose purpose was to construct a million new dwellings in ten years. After about 30 years as a building contractor, Ernst Rosén decided to focus its activities primarily on the ownership and management of its own properties, and ceased building operations completely. Some years later, the company acquired Flodén Byggnads AB and resumed building activities through its new subsidiary. This acquisition also included a portfolio of properties in Lerum and Alingsås, representing Ernst Rosén s first steps outside Gothenburg. As one of the first companies in the industry to focus on the customer, Ernst Rosén undertook a specific improvement programme in the 1990s that made it the best property owner in Sweden for service and quality. In 1990, Ernst Rosén acquired Nääs Fabriker, a historic premises set in an area of natural beauty, and a journey of change was undertaken to develop the area. Six years later, the company expanded its property portfolio by 50 percent at a single stroke with the acquisition of Aranäs AB in Kungsbacka, in partnership with Ivar Kjellberg Fastighets AB. This made Ernst Rosén the joint owner of 2,000 apartments, the Kungsmässan shopping centre and several other commercial properties, together with just over 900,000 square metres of development land. Over the following years, the Group continued to make strategic property acquisitions in central areas of Gothenburg, Lerum and Alingsås. Ernst Rosén has also invested in both stimulating and expansive projects, such as the hotel and conference centre at Nääs Fabriker. In addition, the company is an important shareholder in wind power operator Rabbalshede Kraft AB, and is involved in property investment in the USA and other challenging property development projects. Ernst Rosén's construction team sometime during the first part of the 1940's.The founder of the company Ernst Rosén standing second line to the left. 5

ERNST ROSÉN KEY RATIOS, GROUP key ratios, group* 2013 2012 2011 Total turnover, SEK million 552 552 542 Rental income, SEK million 435 421 414 Total occupancy, % 98 98 98 Market value of properties, SEK million 5 166 5 035 4 995 Surplus value of properties, SEK million 2 846 2 853 2 767 Equity, SEK million 351 320 293 Adjusted equity, SEK million 2 570 2 545 2 332 Equity/assets ratio, % 12 11 10 Adjusted equity/assets ratio, % 49 50 47 Borrowings, SEK million 2 379 2 300 2 317 Adjusted borrowings ratio, % 46 46 46 Average loan interest, % 3,82 3,77 3,9 Average fixed interest term, years 3,57 3,55 3,59 Interest coverage ratio, % 160 139 129 Lettable area, residential property, m 2 241 600 238 600 239 500 Lettable area, commercial premises, m 2 113 200 113 200 113 300 Total lettable area, m 2 354 800 351 800 352 800 Number of apartments 3 435 3 396 3 396 Number of commercial premises 717 725 725 Number of properties 83 82 82 Number of employees 134 124 116 * The key ratios are calculated on the basis of the Group s total assets and liabilities, including 50 percent of Aranäs AB, as well as its property holdings in the USA. Market values are based on an internal return-on-investment model. definitions Surplus value of properties Adjusted equity Equity/assets ratio Adjusted equity/assets ratio Adjusted borrowings ratio Average loan interest Average fixed interest term Interest coverage ratio Market value of properties less book value Equity plus surplus value of properties, less deferred tax on surplus value Equity divided by total assets Equity divided by total assets, including surplus value of properties Long-terms loans divided by total assets, including surplus value of properties Interest charges as a ratio of average interest-bearing debts Remaining fixed interest term weighted with residual interest-bearing debts Profit/loss after financial items 6

ERNST ROSÉN KEY RATIOS, PROPERTY MANAGEMENT key ratios, property management** 2013 2012 2011 Occupancy ratio, residential property, % 100 100 100 Occupancy ratio, commercial premises, % 94 95 95 Lettable area, residential property, m 2 166 300 166 400 167 500 Lettable area, commercial premises, m 2 72 600 73 200 73 000 Total lettable area, m 2 238 900 239 600 240 500 Average lettable area, residential property, m 2 70 70 70 Average lettable area, commercial premises, m 2 136 134 134 Percentage of apartment transfers, % 12 10 11 Average occupancy, years 10 9 9 Number of apartments 2 393 2 394 2 394 Number of commercial premises 536 546 546 Number of properties 59 60 61 Number of employees 40 39 40 Employee satisfaction index 92 - Service index, residential property 87,4-87,9 Product index, residential property 77,9-78,6 Service index, commercial premises - 88,0 - Product index, commercial premises - 82,3 - ** The key ratios are calculated on the basis of the Group s wholly-owned property holdings in Gothenburg, Lerum and Alingsås. 7

ERNST ROSÉN REAL ESTATE real estate ER Group owns and manages properties in central Gothenburg, Lerum, Alingsås and Kungsbacka. In total, Ernst Rosén owns 104 properties, of which 45 are located in Kungsbacka and owned together with Ivar Kjellberg Fastighets AB. These 104 properties holds 4478 apartments. göteborg (gothenburg) Stadskartan 1 Danska vägen 69/ Liedstrandsgatan 3 2 Danska vägen 73 3 Danska vägen 75/ Pärlstickaregatan 2 4 Danska vägen 79/ Torkelsgatan 1 5 Pärlstickaregatan 4 8

ERNST ROSÉN REAL ESTATE 6 Danska vägen 72 14 Sankt Pauligatan 1/ Mäster Johansgatan 8, 12 22 Nedre Fogelbergsgatan 4 30 Jungmansgatan 31 33 7 Danska vägen 74 15 Sankt Pauligatan 3 7 23 Nedre Fogelbergsgatan 6 31 Stampgatan 20 8 Danska vägen 76 78 16 Sankt Pauligatan 9 11 24 Karl Gustavsgatan 53 67 32 Viktor Rydbergsgatan 14 9 Danska vägen 80 82 17 Redbergsvägen 22 42/ Lilla Redbergsgatan 2 25 Brunnsgatan 1/Västergatan 11 15/ Övre Husargatan 6 12 33 Falkenbergsgatan 14 10 Danska vägen 84 18 Kungälvsgatan 4 26 Övre Husargatan 14 26 34 Utlandsgatan 6 8/ Gyllenkrooksgatan 10/ Rudedammsgatan 6 11 Sankt Pauligatan 20 30 19 Platågatan 4 27 Västergatan 19 29 35 Anders Zornsgatan 25 12 Danska vägen 86 96 20 Danska vägen 77 28 Nordostpassagen 41 43 36 Anders Zornsgatan 36 13 Sankt Pauligatan 6 16 21 Engelbrektsgatan 63 29 Vegagatan 22 38 37 Mejerigatan 18 22 9

ERNST ROSÉN REAL ESTATE alingsås 1 Ahlströmerg 6A B 2 7 Ö Ringg 6 8, Drottningg. 41 43 8 Plang 25, Nygatan 21 9 Färgaregatan 18 Ahlströmerg. 5, Kungsg. 40 42 10 Lilla Torget 3 11 Kungsg 10 12 12 Kungsg 24 13 Ö Kyrkog 6 8,Torgg 7 9, Kungsg 14 14 Östra Kyrkog 3 15 Drottningg 7 11 10

ERNST ROSÉN REAL ESTATE 6 lerum gråbo CENTRUM nääs fabriker business park 1 Göteborgsv 16 3 Brobacken 10 5 Ljungvik Monv 11 89 6 Spinnerivägen 1, Företagscentret Nääs Fabriker 2 Brobacken 2 4 Åsenvägen 2 kungsbacka our half-owned properties in kungsbacka 1 Drottninggatan 2+4 2 Guldgubbegatan 1/ Drottninggatan 6 3 Guldgubbegatan 3 4 Guldgubbegatan 5 5 Stormgatan 4 38 6 Stormgatan 40 72 7 Bäckmans Gård 80 116, 120 132 8 Bäckmans Gård 68 76 9 Bäckmans Gård 42 64 10 Bäckmans Gård 2 40 11 Nydalsgatan 1 12/ Boplatsgatan 1 5 12 Boplatsgatan 15 18 Dragstedtsgatan 1 4, 6 12 Smeagatan 1 3 13 Tölövägen 25 14 Ivarsgårdsgatan 137 179 15 Ivarsgårdsgatan 93 135 16 Ivarsgårdsgatan 49 91 17 Ivarsgårdsgatan 96 136 18 Ivarsgårdsgatan 25 47, 52 94 19 Ivarsgårdsgatan 1 23, 2 50 20 Kabelgatan 11 21 Teknikgatan 2 10 22 Teknikgatan 12 20 23 Östanvindsgatan 3 19 24 Östanvindsgatan 21 47 25 Östanvindsgatan 49 61 26 Östanvindsgatan 63 79 27 Borgmästaregatan 5 28 Borgmästaregatan 8 29 Storgatan 31, Vallgatan 6 30 Storgatan 33 35, Vallgatan 1 3 31 Norra Torggatan 8 12, Östergatan 7 32 Södra Torggatan 13 17, Östergatan 3 5 33 Södra Torggatan 16 18, Kyrkogatan 6 34 Hamntorget 1 35 Nygatan 2 36 Nygatan 10 37 Lantmannagatan 38 Gullregnsvägen 1 47 39 Valhallsvägen 1 12/ Munins väg 19 31 40 Askvägen 25 41 Kolla backe 5+7 42 Kungsgatan 5 43 Gnejsvägen 51-57 44 Gnejsv 50-56, Rubinv 3-5, Spinellv 30-36 45 Kollavarvsvägen 10-18 Maps from Kartena AB 11

BOX 135, 401 22 GÖTEBORG, SWEDEN VISITING ADRESS: STAMPGATAN 20 TELEFON: +46(0)31-80 60 80 E-MAIL: INFO@ERNSTROSEN.SE WWW.ERNSTROSEN.SE