KlaraBo Sverige (KLARA) investor relations material

Deal rationale and strategic fit

• Creates the largest listed residential property company in Sweden, with SEK 47 billion in assets and about 26,500 apartments, enhancing scale, cash flow, credit metrics, and geographic diversification.

• Combined platform improves cash flow, broadens access to capital, and attracts both domestic and international investors.

• Merged entity will be more than twice the size of the second-largest listed residential company in Sweden.

• Portfolio includes significant refurbishment potential, with 66% of apartments eligible for upgrades.

• Complementary portfolios and business models enable balanced regional exposure and increased operational efficiency.

Financial terms and conditions

• Merger executed at NAV for both companies; exchange ratio set at 9 Sveafastigheter shares for 22 KlaraBo shares, with an implied equity value of SEK 2,035 million for KlaraBo.

• KlaraBo to pay an extraordinary dividend of SEK 1.4 per share to existing shareholders, conditional on merger approvals.

• KlaraBo acquires a SEK 7 billion property portfolio from SBB, financed via share issue at NAV; SBB receives merger consideration in Sveafastigheter shares.

• Combined company will have 302.9 million shares outstanding post-merger.

• Post-merger ownership: 65% Sveafastigheter shareholders, 20% KlaraBo shareholders, 15% SBB.

Synergies and expected cost savings

• Annual operational synergies estimated at a minimum of SEK 120 million, including SEK 55 million from property expenses and SEK 30 million from central administration.

• Financial synergies estimated at SEK 35 million annually, expected to be realized gradually with refinancing.

• Synergies expected to be fully realized within 12 months post-merger registration.

• One-off integration costs estimated at SEK 5 million.