Backahill Annual report 2021

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Annual report

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Dagshög, Skåne's largest burial mound, is located a few kilometres south of Torekov. It is said that King Dag of Skåne is buried here. The stone quarry ruin, a reminder of the quarrying that took place in the early 1900s, is right next to the burial mound.



Contents Introduction Lennart’s comments 2021 in brief 2021 in figures Business concept and strategy

6 8 10 12 14

Our business areas Backahill Property Development Backahill Destination Development Backahill Invest

18 20 26 32

Development & innovation 46 5 influential trends 48 An expanding Ängelholm 50 A strong Bjäre 54 Smart buildings 58 Our sustainability work 60 Environment and energy goals 62 Environment and energy strategy 63 Current projects 64 Our community engagement 67

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70 73

Administration report Multi-year review

75 75 76 78

Group Income statement Balance sheet Statement of cash flows

79 79 80 82 83 106 108 109

Parent Company Income statement Balance sheet Statement of cash flows Notes Audit Report Board of directors Management team


Norrvikens trädgårdar got a new entrance.

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Backahill. We are a family business that owns, develops and manages properties. Our business is driven by a strong entrepreneurial spirit and we aim to be a positive force for change in the communities we are part of. The company’s roots are firmly anchored in the north-west of Skåne. The head office is located in Ängelholm, with local offices in Båstad and Stockholm. In all our contacts with the world around us and with our stakeholders, we strive for long-term, collaborative relationships. Today, we are active throughout Sweden, but also in the Nordic region, through both our own companies and ownership interests in some of Sweden’s leading property companies. We are a strong, long-term and committed player in the community, committed to contributing to communities in which people are happy to reside, work and live. Where others see a wasteland or a run-down property, we see new opportunities that we have the power to realise thanks to our solid financial platform. Our strategic shareholding gives us the freedom to act. As a property developer and manager, we have a great opportunity to make an impact and therefore we attach great importance to ensuring that everything we do takes people and the environment into consideration. Our operations are divided into three business areas: Property development. We buy, develop and manage residential, commercial and community properties. Destination development. We work towards the conscious and long-term development of destinations to contribute to a vibrant community and outstanding experiences. Invest. We make long-term financial investments, are active shareholders and have listed and unlisted holdings.

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Lennart’s

comments

CEO Lennart Mauritzson

A strong belief in the future

The last two years have presented us all with numerous tough challenges. With a great deal of humility, flexibility and experience from the first Coronavirus year, our organisation has managed to do a fantastic job in 2021, delivering a result beyond expectations given the current circumstances. We should all be very proud of that. Commerce in Ängelholm has developed surprisingly well during the past year despite the difficult circumstances. Working with Ängelholm’s business community, we have supported our tenants in finding creative, longlasting solutions. We are passionate about creating a vibrant city, and are working on several fronts to develop Ängelholm in the long term. One example of this is ÄHLM Market, a unique and appealing concept that we believe can provide a boost to the city centre when it opens in autumn 2022. Another example is our ambition to make higher education in the Ängelholm area more accessible, and to create a campus so that our young people and young adults see Ängelholm as a great place to study, and as a pleasant place to live, settle and thrive. Our Destination Development business area faced a roller-coaster ride in 2021. The effects of the Coronavirus pandemic limited our hospitality facilities’ room for manoeuvre and impacted our guests’ visits. Our organisation has worked dynamically and resourcefully, and has benefited from the lessons learned from the first pandemic year. We have worked hard to adapt quickly to meet the requirements and recommendations of the authorities while meeting our guests’ needs in the best possible way. A solid effort was made to ensure the most consistent occupancy rates possible – despite restrictions that came, went and returned throughout the year. As the year drew to a close, we were delighted with the positive development of GRAM Group hotels, with turnover up from SEK 259 million in 2020 to SEK 379 million in 2021, a remarkable achievement. The strong recovery was

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“ In 2021, we continued to maintain high activity levels in terms of new construction, renovation and business.” due to several factors. In addition to the return of the tennis competitions (as well as a padel tournament) to Båstad after the break in 2020, both private guests and conference customers returned to our hotel facilities. The great response we received from all the “staycation” Swedes in 2020 thus continued in 2021. This is also reflected in the number of people visiting Norrvikens trädgårdar, which increased from 112,000 to 120,000. During the autumn, our guests had another reason to visit, thanks to the opening of the Ravinen cultural centre. The stunning building with clear architectural merits was completed during the year and inaugurated in October 2021. Norrviken also got a facelift in the form of a nice new entrance, shop and new staff facilities. In 2021, we continued to maintain high activity levels in terms of new construction, renovation and business. The construction of Fågelsången 3 next to Rönne river in central Ängelholm is underway with tenants expected to move in during 2023. We are very proud of this densification project as it is our first building to be certified according to Miljöbyggnad Silver, and we are also installing our first solar panel system. The Arenastaden area is developing according to plan in the southern part of Ängelholm. A new training facility for ice rink sports was completed in 2021 and the renovation and extension of the Catena Arena entered an intensive final phase before completion in the spring of 2022. In November, construction began on a new padel hall in Arenastaden. Construction activities in Båstad have been numerous in 2021. In addition to what I said about Norrviken above, we have completed apartments


at Greenside in Boarp as well as Apelrydsskolan’s combined accommodation for students and seasonal staff. For Hotel Riviera Strand, construction of an extension was started to increase the capacity of the restaurant. Central Båstad’s new addition Gamlegården, with its 18 apartments and five commercial premises including an underground car park, will be ready for occupancy in the summer of 2022. We strive to make the centre of Båstad a place of activity, life and movement all year round, the same as Ängelholm. We continue to focus on and refine our three business areas Property Development, Destination Development and Invest. This has resulted, among other things, in three sales of varying magnitude, with the common denominator being that we are streamlining our holdings. Our shareholding in SkiStar, which operates and owns alpine ski resorts, has been sold in its entirety to the Norwegian investment company Aeternum Capital AS. We found a new owner for the pharmaceutical company Cernelle in the listed German pharmaceutical group Dermapharm. In both cases, 100 per cent of the shares have changed hands. Finally, we sold our 33 per cent stake in the HR and payroll company Competensum. We have also completed some smaller transactions, including the sale of Pensionat Hjorten in Båstad to make room for new investments. An example of this is Torekov Hotel, which Backahill acquired at the end of the year. This significantly strengthens Bjäre as a tourist destination for us. Another interesting area that we have great faith in is our Bjuv-based projects within the Foodhills sphere. In addition to the pea farming within Foodhills AB and the premises we rent out within Foodhills Fastigheter AB, we have now established GroPro AB, which produces plant-based proteins for the food industry. It is the first facility of its kind in Sweden that produces proteins from legumes. Sister company GroPro Solution AB was also established, with the mission of bringing the technology that makes protein production possible to the international market. We believe that plant-based food production will increase

significantly in the world in the coming years. I note that we are on a very solid financial footing – the Group reports total assets of SEK 12.1 billion (SEK 10.4 billion in 2020) with an equity ratio of 82 per cent (80 per cent in 2020). Net sales totalled SEK 636 million. Profit after financial items was SEK 1,723 million (SEK 984 million in 2020). There is no ready-made solution to a pandemic – there are no clear, concrete answers. The war in Ukraine means new uncertainty for us. Despite the prevailing uncertainty and the sometimes very rapid changes in 2021, our employees have risen to the challenges and fought on together. And it is by working together that we can overcome the obstacles, gather the courage to try new approaches and find new ways forward. This gives me confidence and a strong belief in the future.

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2021 in brief Jan.

New padel hall in Arenastaden in Ängelholm. Design of a new padel facility begins. The building will include eight courts, a gym, a physiotherapy clinic, a lounge, a reception area, a conference area and changing rooms.

Feb.

Mar.

Apr.

Start of Gamlegården construction. Construction is underway on the newly developed Gamlegården neighbourhood in Båstad, with its combination of residential and commercial premises.

100% GRAM Group. GRAM Group becomes a wholly-owned subsidiary of Backahill from the beginning of 2021.

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May

Combined student and staff accommodation. The building housing Apelrydsskolan’s student accommodation in Båstad is ready. In summer, the rooms are used to house seasonal hotel and restaurant staff, and as student accommodation the rest of the year.

Jun.


SkiStar is sold. Backahill sells its entire shareholding in SkiStar, which operates alpine ski resorts, to Norwegian investment company Aeternum Capital AS.

New ice training hall ready. A new ice training hall is ready in Arenastaden in Ängelholm. The facility extends ice time for hockey, figure skating and general skating practitioners.

Jul.

Aug.

Sept.

Oct.

Torekov Hotel is acquired. Another great hotel is now part of the Backahill group, Torekov Hotel on the Bjäre Peninsula.

Nov.

Dec.

Ravinen cultural centre is inaugurated. Ravinen is located in Norrvikens trädgårdar and is a dynamic meeting place for art, music and design in the Bjäre Peninsula.

Higher education. A declaration of intent is signed with Halmstad University to enable Ängelholm to offer higher education from 2025 on Campus Ängelholm.

Cernelle, which develops and manufactures herbal medicines, is sold to German pharmaceutical group Dermapharm AG.

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2021 in figures

82

%

Backahill’s equity/assets ratio in 2021.

1,723

636 12.1

Consolidated profit after financial items in SEK millions.

Backahill’s sales in SEK millions.

Total assets in SEK billions.

579 Number of apartments that Backahill owns in Ängelholm (513) and Båstad (66).

120,000 Number of visitors to Norrvikens trädgårdar in 2021.

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157,709 Total number of guest nights sold at Hotel Skansen, Hotel Riviera Strand and Torekov Hotel in 2021. The number of room nights is 80,036.

4,000 Number of tonnes of pea protein planned to be produced in the first year at GroPro AB in Bjuv, where Backahill is the majority shareholder with 50 per cent of shares.

69

Number of rental properties built in the Fågelsången 3 neighbourhood in Ängelholm, Backahill’s first property to be built according to the Miljöbyggnad Silver certification.

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Business concept and strategy


We do what we say We are a clear community player that takes responsibility and dares to turn dreams into reality. Since its creation almost 25 years ago, Backahill has been characterised by a very strong entrepreneurial spirit. We always see opportunities rather than obstacles, and we always say yes rather than no. Our organisation has often been able to develop business ideas that have sometimes been unusual, and turn them into something good. This has also made our holdings look rather disparate at times, for better or worse. We have kept our entrepreneurial spirit, and we are working on our disparate holdings. We are a strong, long-term player in the community, committed to contributing to communities in which people are happy to reside, work and live. At the same time, our world is changing. The pandemic has accelerated digitalisation. The boundary between workplaces and home offices is becoming increasingly blurred. Future generations will have different lifestyle and housing requirements. Global climate change presents us with new challenges. In order to meet future

“We’re passionate about making our community a little better – and we do it from the heart.”

needs for housing and thriving environments, constant adjustments and improvements, inspiring ideas and useful lessons are needed. For this reason, we have been undergoing a transformation process for some time now, which means that we are streamlining and refining Backahill’s focus and main priorities. Our three business areas are our backbone. Within Property Development, we buy, develop

and manage residential, commercial and community properties. This is closely linked to our other business area, Destination Development, where we work towards the conscious and longterm development of destinations to contribute to a vibrant community and outstanding experiences. Our third business area, Invest, is key to the success of our activities in the first two business areas. Within Invest we make long-term financial investments, are active shareholders and have listed and unlisted holdings. The division into the three business areas gives us a clear focus on what we need to do – as well as what we don’t need to do. We like to challenge our-

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“ Property is our primary tool for bringing about change and creating new opportunities.”

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selves and as mentioned above, we prefer to say yes to new ideas, but sometimes we say no to ideas because they don’t fit into our framework. Our transformation towards greater transparency also means sharpening our skills and honing our expertise. In our areas of expertise, we will become even better. This clarity makes it easier for our stakeholders and ourselves to know where we stand. We do what we say. We turn visions into reality. Property is so much more to us than four walls and a roof. Property is our primary tool for bringing about change and creating new opportunities for

the benefit of everyone. Property exists for people to meet, shop, play sports and live in. Property provides experiences, pleasure and comfort. To turn all our ideas into reality, we need a great deal of patience. Many of the processes related to land, Zoning Plan and building permits take a long time, sometimes several years, before our visions can be transformed into tangible construction projects. It requires not only patience, but also continuity, a long-term approach and strength combined with respect for people and the environment. As an active member of the community, we have a responsibility to act as a positive


BACKAHILL DESTINATION DEVELOPMENT

BACKAHILL PROPERTY DEVELOPMENT

BACKAHILL INVEST

Lennart Mauritzson

force for change in the communities we serve. Ängelholm and Bjäre are our home markets. Fortunately, they both have a growing population. We want to continue to create vibrant environments and neighbourhoods where everyone can feel safe. We encourage people to come here, which in turn creates jobs so that more people can live and work here. It is a virtuous circle. This creates pride for our community and we also feel this pride within our organisation – because we make things happen. Add to this our significant ownership interests in five listed property companies with operations across Sweden and the

Nordic region, and our responsibility is all the greater. This is why we are so committed to everything we do. We’re passionate about making our community a little better – and we do it from the heart. Three factors play a big role in our company’s development. Our financial strength gives us the ability to think long-term. Our courage allows us to dare to challenge conventions and believe in what feels right in our hearts. Finally, our innovative power is needed to do what others don’t, that little extra that creates appeal.

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Our business areas

Backahill’s operations are divided into three business areas: Property Development, Destination Development and Invest. With this division we work to create vibrant communities and attractive destinations with the help of a stable financial base in our shareholdings.

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Backahill Property Development

Vibrant communities Within our Property Development business area, we take our responsibility as an active player in the community and engage in the development of selected regions. We want people to be happy to reside, work and live where we operate. In Backahill property development, we buy, develop and manage residential, commercial and community properties. We concentrate primarily on doing business in Ängelholm and on the Bjäre Peninsula, but we also have operations in other locations in Sweden, such as Bjuv, Nyköping and Nacka. Our financial strength gives us the ability to take a long-term view and dare to invest in community-building measures that may not give us a return from day one, but that have an impact on the community in the long run. A great example of this is our work to create the right conditions for Ängelholm to provide access to higher education. In November 2021, a declaration of intent was signed with Halmstad University about this. The idea behind Campus Ängelholm is to contribute to a vibrant city centre and to ensure that more young people see the city as a viable option for post-secondary studies. For us, it’s about developing suitable properties such as student housing, educational facilities, cooperative apartments and commer-

“Building a better and more sustainable community is one of our goals as property owners.”

Apelrydsskolan’s new building in Båstad.

cial premises. Another example of our strong commitment to developing Ängelholm is Arenastaden in the southern part of the city. Through Arenabolaget, in which we are the largest shareholder with 48 per cent, we are implementing our vision of an active and welcoming sports city with space for everyone to enjoy a wide range of sports and leisure activities. In 2021, the renovation and extension of Catena Arena was underway here to allow more people to see the city’s pride and joy, Rögle BK, play

at home. The arena opened in March 2022. A new training hall for figure skating and hockey was completed on the arena site in August 2021. This is an important addition to ensure that everyone who wants to has the opportunity to practice on ice. Construction of a new padel facility began in November 2021. The padel hall will be placed behind one side of the Catena Arena and will contain eight high-quality courts. It will also house a gym, physio clinic, lounge area, reception, conference area and changing rooms with sauna. Construction time is expected to be around nine months. A third example of our involvement in Ängelholm is ÄHLM Market, an innovative concept on

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Backahill Property Development

how city commerce can continue to thrive and create new experiences. A medium-sized town such as Ängelholm needs to have an attractive range of shops to attract both locals and visitors to shop in the town rather than choosing to go to the nearest big city or shopping centre. That’s why Backahill has spent a lot of time creating the unique ÄHLM Market concept. The planning and redevelopment of Åhléns’ former premises in central Ängelholm began during the year. ÄHLM Market will be a central retail area with a lot of content. There will be a large, varied and surprising range of shops, food and drink, experiences and services, easily accessible to all residents and visitors to Ängelholm. The offering will complement what is already available in central Ängelholm. The ongoing construction of 69 rental properties and a commercial space in Fågelsången 3 in Ängelholm is an important project for us in several ways. This is our first project constructed according to the Miljöbyggnad Silver certification. Building a better and more sustainable community is one of our goals as property owners. Fågelsången 3 is also a good example of how cities can be densified to make more efficient use of space for central housing. The densification makes services to the community more accessible to more people, while allowing valuable land outside urban areas to be preserved as nature or agricultural land. Completion is scheduled for February 2023. At the end of December 2021, ground was broken for what will be a new car showroom for Bilgruppen Sandström & Hultin, which is moving its operations from Östra Ljungby to an attractive location in the Midgård area in Ängelholm. The hall is expected to be completed by autumn 2022. Another project worth mentioning is the renovation of the police station in Ängelholm. Temporary

Fågelsången 3 in Ängelholm is also a good example of how cities can be densified to make more efficient use of space for housing.

premises will be converted, after which refurbishment and extension can take place at the property on Svenskehögsgatan, next to Backahill’s head office. Gamlegården in Båstad is a newly developed neighbourhood with a combination of residential and commercial premises that we hope will bring more life to the central areas of Båstad. With five premises, 18 apartments, a nice courtyard and underground parking, we believe this will enhance the range of year-round activities in Båstad. Occupancy is planned for summer 2022. At the end of the year, we added to our property holdings on the Bjäre Peninsula by acquiring Torekov Hotel. Another important project is the expansion of the restaurant at Hotel Riviera Strand, which is being carried out under

“ The densification of cities makes public services more accessible to more people.” Båstadtennis & Hotell AB. During 2021, we built the Ravinen cultural centre at the entrance to Norrvikens trädgårdar in Båstad. This attractive 1,500 m² building houses three exhibition halls, an auditorium, a workshop for creative activities, a café and a shop. Ravinen was inaugurated on 1 October 2021. Next to Ravinen, a new entrance, shop and staff facilities for Norrvikens trädgårdar were also completed during the year. Chocolaterian, located

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Backahill Property Development

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The fourth floor of the Catena Arena is new. The arena is seven metres higher and has 1,500 more seats.

outside the entrance, was also extended. Last summer, Apelrydsskolan’s new building was completed in Båstad. It serves as staff accommodation in the summer and as student accommodation for the rest of the year. The initiative came from Backahill because we identified the great need for housing for all the seasonal staff who work on the Bjäre Peninsula in the summer. Eight rental apartments were constructed in rural Boarp, right next to Båstad Golf Club’s courses. There are two blocks of two-bedroom apartments with pretty verandas, built in true New England style so that more people can enjoy Bjäre’s beautiful surroundings.

Looking north, our company Backastad won a municipal land allocation competition in Upplands Väsby in 2021. The Jazz project, designed by ES-A Architects, is inspired by 1920s classicism. The win means that we will build a block of residential houses north of Mälarvägen in Upplands Väsby. The Zoning Plan work is ongoing. Our major building project in the Stockholm area, Graninge Strand, is located in Nacka and in November 2021 two buildings were completed with a total of 42 rental apartments. Two more blocks have been started and will contain 23 cooperative apartments. Tenants are expected to move in during September 2022. In Nyköping, the Zoning

“ Through our company Backastad we won a municipal land allocation competition in Upplands Väsby in 2021.” Plan has been approved for the Backastad site in Nöthagen. We will build 130 rental apartments here. The Nöthagen area next to Nyköping station is being transformed from an industrial area into housing, offices, shops, schools and restaurants.

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Backahill Destination Development

Attractive destinations In our Destination Development business, we use properties as a means to create attractive destinations. We focus on the Bjäre Peninsula with Båstad at its centre and Ängelholm. We strive to make Bjäre and Ängelholm vibrant places to live and attractive holiday destinations that offer rewarding meeting places and unique experiences. We promote trade and activities here, enabling many people to experience beautiful environments and unforgettable nature. The great diversity, breadth and quality of the housing options keep people coming here, time and time again. In 2021, the activities of the Destination Development business area were consolidated further. One of the most important events during the year was the sale of all the shares in alpine ski resort company SkiStar. This gives us scope to take action and strengthen our long-term commitments on the Bjäre Peninsula and in Ängelholm. Among other things, we are continuing to develop Norrvikens trädgårdar in Båstad. The Ravinen cultural centre was added during the year. Artists Ulla and Gustav Kraitz have long nursed a dream about an art gallery next to the creek ravine at

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“ The great diversity, breadth and quality of the housing options keep people coming here, time and time again.”

Hotel Skansen

Norrvikens trädgårdar – a vibrant and dynamic meeting place for art, music and design. Ravinen was constructed by Backahill and opened in October 2021. We also completed a new entrance and shop at Norrviken, as well as more practical staff facilities. Chocolaterian was extended and the car park was redesigned to provide a more welcoming impression while making more efficient

use of the space. Bjäre as a destination was also strengthened when the popular Torekov Hotel was acquired in December 2021. Backahill owns the property, while GRAM Group manages the operations. Alongside Hotel Riviera Strand and Hotel Skansen, Torekov Hotel complements our hotel operations very well. And let’s not forget our popular restaurants Pepes Bodega and Papas, which complement the offerings of the hotel’s own restaurants. For us, developing a destination means generating new opportunities. Creating a vibrant place to live, where things happen and which people want to visit, requires property. In Ängelholm,


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Backahill Destination Development

A temporary studio was built at Hotel Skansen to host digital events and conferences.

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Norrvikens trädgårdar got a new entrance.

The Båstad tennis pavilion has been renovated.

Papas Garden - a successful approach to increasing outdoor capacity.

The restaurant at Hotel Riviera Strand will significantly increase its capacity.


In 2021, Backahill acquired the Torekov Hotel property.

we are building Arenastaden so that people can meet, practise their favourite sport and take part in exciting sporting events. In Båstad, tennis history is made every summer thanks to the ATP and WTA tournaments held at our centrally located tennis and hotel facility. Our three hotels in Bjäre – Hotel Skansen, Hotel Riviera Strand and Torekov Hotel – attract visitors by offering a combination of a pool and spa, good food and accommodation, active holidays and beautiful nature. You can read more about our hotel and restaurant business in the article on the next page. The work to significantly expand the restaurant capacity at Riviera Strand was initiated in 2021. The construction of Gamlegården in Båstad began in 2021 – a central location offering shops, cafés, restaurants and other

services. Eighteen apartments are being built at the same time on the upper floor, with underground parking. Our hope is that this neighbourhood will fill a void in terms of meeting places and inner-city housing and give central Båstad more vibrancy all year round. Bjäre is known for its beautiful golf courses and many visitors frequent the five courses throughout the year. To attract more golf enthusiasts to the peninsula, we offer the ultimate country club accommodation, which we call Greenside. During the year, we completed eight rental apartments with stunning views over greens and landscape next to Båstad Golf Club’s courses. Tourism attracts hundreds of thousands of people to Bjäre and every year it is a challenge to find accommodation for all the

“The work to significantly expand restaurant capacity at Riviera Strand commenced in 2021.”

staff who take care of the visitors. Backahill has combined student accommodation with accommodation for seasonal workers at Apelrydsskolan. Completed in the summer of 2021, the new building provides space for both students at the school as well as much-needed accommodation for seasonal staff in the hospitality industry. Apelrydsskolan is a boarding school located in Båstad with six three-year programmes at upper secondary level.

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Backahill Destination Development

A fantastic but challenging year In terms of turnover, 2021 was a good year for Backahill’s wholly-owned hotel and restaurant group GRAM Group. The business had to rethink things quickly several times – and make changes – due to Coronavirus restrictions. Great efforts have been made during the year to increase digital presence and improve the customer booking process at GRAM Group’s hotels and restaurants. Booking more than just a hotel room should be easy – most visitors to Båstad and Bjäre also want to book activities and restaurants. Each brand remains strong, but the synergies behind them have been better exploited, for example restaurant bookings have been brought under one roof. During the slow periods, i.e. the first and fourth quarters of the year, package pricing and marketing efforts were intensified. This has resulted in a more even occupancy rate in 2021 compared to 2020. “One thing we have introduced is variable pricing, which allows demand to drive the price. We have had to work fast and focus on the short term because of the restrictions. What has taken a back seat is building the brand in the long term, especially with international guests and mar-

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kets,” explains Daniella Andrys, Marketing Manager. Before each new round of restrictions presented by the Public Health Agency of Sweden and the government, GRAM pulled together, exchanged ideas internally and reorganised its operations. For example, the breakfast service had to be spread out over all the hotel areas so that there would not be too many guests in one place. In 2021, the Swedish market and private customers continued to be important for the Group, as foreign guests, including the large and important Danish target group, could not come here. Social media efforts and strengthening partnerships, for example with online travel agencies such as hotels.com, have led to increased growth. Turnover for the year was the best ever, at SEK 379 million. “It’s amazing that this turned out to be a record year under the circumstances! It was also great to feel that Båstad came alive

again during the summer.” Despite the great results, Daniella says there are bigger opportunities remaining. “I hope to be able to work more strategically, building the brands and taking a long-term view. Going forward, our aim is for half of our turnover to come from conferences. We also need to capture new audiences and generations. We will also invest more in international efforts aimed at Denmark and northern Europe. And increase year-round occupancy. There’s a lot still to do!”

GRAM Group 2021 Number of employees: 230 permanent employees, approximately 1,000 in total over one year Turnover: SEK 379 million Number of rooms: 172 (Skansen), 144 (Riviera Strand), 54 (Torekov) Guest nights sold: 68,573 (Skansen), 64,671 (Riviera Strand), 24,465 (Torekov)


Marcus Thuresson, CEO, and Daniella Andrys, Marketing Manager, at GRAM Group.


Diös has developed premises for the Swedish Transport Agency in central Borlänge.


backahill invest

A stable portfolio with good risk diversification Invest is the business area that includes our financial investments. It includes listed and unlisted companies, both large and small, and well-established groups and start-up companies. Backahill has created a stable investment portfolio of equities in primarily property companies. The risk spread is favourable. There is not only an impressive geographical spread, but also a focus on different types of properties, ranging from companies with only logistics properties and companies with Stockholm as their focus, to companies that concentrate on properties in smaller cities. We have strategic shareholdings in five listed property companies. Together they operate across large parts of Sweden and also in Denmark. Our ownership in the companies exceeds ten percent of both capital and votes. From north to south, our holdings are as follows: Diös is northern Sweden’s largest private property company, operating from Borlänge in the south to Luleå in the north. Fabege’s property portfolio is centred on the Stockholm area. Brinova Fastigheter owns and manages rental housing and community properties in southern Sweden. Catena specialises in logistics properties in Sweden and Denmark. Wihlborgs is the leading commercial property company in

“ There is both an impressive geographical spread and a focus on different types of properties.”

the Öresund region with offices and properties in Malmö, Lund, Helsingborg and Copenhagen. In addition to the listed holdings, Backahill has chosen to invest in carefully selected unlisted companies. These are considered to have great development potential and are characterised by viable business ideas, excellent products and a strong desire from management to make a difference. Båstadtennis & Hotell AB, BTHAB, owns and manages several of the properties located in central Båstad. During the year, we increased our ownership in BTHAB to 34 per cent. Operations

in 2021 continued to be affected by the ongoing Covid-19 pandemic and the consequences of the restrictions and recommendations issued by the Swedish authorities. Despite this, BTHAB did well during the year thanks to increased marketing efforts, the opportunity to hold tennis and padel tournaments again and increased interest from Swedish tourists to visit Båstad and the Bjäre Peninsula. Backahill owns 48 per cent of Arenabolaget. We are therefore the largest shareholder in the company that is developing Arenastaden in Ängelholm. Several positive activities took place during the year, including the extension of the of Catena Arena and the construction of a new ice rink, and the start of construction of a new padel hall.

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backahill invest

Top image: The entire SkiStar holding was sold in 2021. Left: GroPro is the first company to produce Swedish pea protein. Right: Fabege is investing heavily in Arenastaden in Solna. It accommodates offices, housing, shops and restaurants.

Foodhills was created after the closure of the Findus food factory in Bjuv. The business focuses primarily on pea production. The company, which is 24 per cent owned by Backahill, had a challenging harvest year in 2021. After a cold and dry spring, the summer was hot with too little rainfall. As a result, the harvest was about 25 per cent lower than expected. At the same time, diesel and freight prices increased and, due to the pandemic, freezer containers were in short supply, making exports more difficult. Backahill owns 46 per cent of Foodhills Fastigheter that rents out the premises where Foodhills is located. More than 70 per cent of the 100,000 m² premises is currently occupied. A new logistics building of 27,000 m² is being built for the largest

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tenant, German meal kit delivery company Hellofresh. The building will be constructed according to Miljöbyggnad Silver certification. The plan is to install solar panels on the roof, which is particularly appropriate as the surfaces are cooled. We have an eight percent stake in the newest airport in the Swedish mountains. Scandinavian Mountains Airport is a state-ofthe-art facility that improves accessibility to the popular ski destinations of Sälen and Trysil. It also creates jobs in the region. Backahill owns 25 per cent of MMB i Båstad AB, which is a construction company in Båstad. It works on new constructions and property renovations. Since the company has built up its own carpentry workshop, wooden parts, wooden furniture and other fine

carpentry such as windows and doors can be manufactured and renovated by skilled craftsmen. Buildroid is a company that works towards the digitalisation of the property industry. Our five per cent share is the beginning of an investment in a very interesting area that is expected to grow significantly in the coming years. See page 58 for an interview with Buildroid co-founder Robin Rutili on the potential of the sector. Important transactions that took place during the year include the sale of all shares in SkiStar, which operates alpine ski resorts, one of our major holdings. As an active and committed property developer, we are constantly looking for new business, and in this sale we saw an opportunity to focus even more effectively on our core business. Backahill’s


Wihlborgs is building the Vista office property in the new Hyllie district in Malmö.

stake in SkiStar was sold in its entirety to the Norwegian investment company Aeternum Capital AS. Another opportunity we saw was the sale of Cernelle, a company that develops and manufactures herbal medicines for the treatment of benign prostate diseases for a global market. Backahill has long been the 100-per cent owner of Cernelle. Through the new owners, German pharmaceutical company Dermapharm AG, we see new opportunities for Cernelle to increase its production capacity and continue to grow globally. The sale concerns all shares and was completed in November 2021. Our 33-per cent stake in Competensum was divested during the year. The company handles human resources and payroll issues in close partnership

with its clients. The buyer was Competensum’s CEO Ann-Sofi Aru and her company Arufam AB. The sale of the three nonstrategic holdings above allows us to further focus on our core business. Backahill also established and acquired several interesting companies in 2021. For example, we made strategic investments in circular food production. Backahill has a 50 per cent stake in the

Backahill’s shareholding in unlisted holdings at 31 December 2021

newly formed GroPro AB, a company that processes proteins from legumes, mainly peas. A sister company has also been set up in the form of GroPro Solution AB, which is 90 per cent owned by Backahill. The company will sell the production and process technology used in GroPro AB for the production of plant-based protein, starch and fibre on the international market. You can read more about these companies on page 42.

Foodhills AB

24%

Foodhills Fastigheter AB

46%

Scandinavian Mountains AB

8%

Arenabolaget i Ängelholm AB

48%

Båstadtennis & Hotell AB

34%

MMB i Båstad AB

25%

Buildroid AB

5%

GroPro AB

50%

GroPro Solution AB

90%

35


Brinova is building 94 apartments in central Kristianstad.

Good growth prospects in 2022 BRINOVA Per Johansson, CEO of Brinova, on the company’s development. What were the two most important construction projects you completed in 2021? The first is housing in Åhus with 48 rental apartments in an attractive location near the sea and beach with a strong focus on high environmental standards. The property will receive ‘green building’ environmental certification. Tenants moved in during December. It is an important project because we have been able to combine attractive rents with very high housing and environmental standards. The second is a new preschool in central Kristianstad where we are developing the Bajonetten neighbourhood in central Kristianstad with rental housing, a grocery store and a preschool. The preschool with six sections was opened at the turn of 2021/2022. The preschool is leased by Kristianstad Municipality on a 25-year lease. This is a unique preschool where we have been able to use an old building (reuse) and adapted it into a modern and efficient preschool where most of the outside play area is on the roof. It is an important project because creating a large preschool in a central location with the requirement for external play space by using the roof for this is unique.

36

What growth opportunities do you see in 2022? We have good growth prospects in 2022 thanks to our large project portfolio. A lot of projects, including housing and community properties, will be ready for occupancy in 2022, and we are also starting new projects. This means that we can largely influence and control our growth and align it with our business plan. What is the main sustainability focus for 2022? Our focus is on continuing our expansion plan with solar panels, increasing the share of self-generated electricity and expanding our network of electric car charging stations in our property areas. In terms of social sustainability, we will continue our good cooperation with local sports clubs, supporting their work with young people and offering summer jobs to our young residents.

Votes

40.0%

Brinova

Capital

23.6%

Backahill’s shareholding

Property value (SEK billion)

7.7

Rental income (SEK million)

399

Management profit (SEK million)

154


backahill invest – Listed companies

Increasing value in our cities DIÖS Knut Rost, CEO of Diös, on the company’s development. What were the two most important construction projects you completed in 2021? The first was Noten, which consists of Hotel Clarion Sundsvall, the first major project for Diös. We created new building rights, found a tenant for the entire building and completed the project within budget and on time. The hotel is an important addition to Sundsvall to create increased flows and bring more people to the centre. The hotel itself is also a destination under the Clarion concept with conference facilities, a spa, lunch and dinner service and more. The second is Hjorten, an office property in central Skellefteå which housed the municipality before it moved out to its own newly built premises. We obtained vacant space of 4,500 m², which we modernised for new tenants, such as WSP, CGI, Afry and PWC, resulting in good, new rent standards in Skellefteå. This has meant the property has experienced a good value increase, which also has a positive effect on other property stock. Tele 2 Sundsvall is also worth mentioning – a transaction where we are following our strategy, converting shops on the second floor into a 4,000 m² office and adding 300 new workplaces to the centre, which strengthens our other businesses. What growth opportunities do you see in 2022? Continued selected transactions at good levels and high value creation potential. We operate in an attractive market, not least in Umeå, Skellefteå and Luleå, where we see growth and a desire for new buildings and the expansion of offices and urban services, among other things. Further growth through in-house developed building rights and projects with occupancy in 2022, including Hotellet Umeå, the Swedish Transport Agency in Borlänge, and the Police station in Umeå. We are also seeing growth in our existing portfolio with attractive establishments such as Northvolt in Borlänge and Synsam in Östersund, which increase our values in each city. What is the main sustainability focus for 2022? Within Goal 3, emissions from construction are the largest item over which we have considerable control. We are currently creating a baseline through post-calculation and through training a broader understanding of what steps we should take in the requirements specification and development of new buildings to build with lower climate impact. We have

Top image: Västra Stranden is Luleå’s new central neighbourhood with offices, housing and urban service facilities. Bottom image: Dalarna University is moving to a new attractive location, in the centre of Borlänge. Construction of these two projects has just begun.

set a Science Based Targets initiative (SBTi) of halving targets 1 and 2 by 2030. We are focusing on our goal of more green assets. This includes reducing primary energy use, certifying more properties and carrying out climate risk assessments.

Votes

10.5%

Diös

Capital

10.5%

Backahill’s shareholding

Property value (SEK billion)

28.0

Rental income (SEK million)

1,967

Management profit (SEK million)

1,030

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backahill invest – Listed companies

Focus on sustainability in new buildings FABEGE Stefan Dahlbo, CEO of Fabege, on the company’s development. What were the two most important construction projects you completed in 2021? Of the construction projects that got underway in 2021, I would especially like to mention Nationalarenan 3, also known as House of Choice, in Arenastaden. It was built primarily for Choice with hotel, long-stay accommodation and offices and is the first zero-energy hotel in the Nordic region. During the year, after Bilia was able to move into newly built premises, we also started the next phase of Haga Norra where we are building a sustainable building, which will largely be built using recycled materials from the buildings we need to demolish to continue developing the area including 500 new homes and modern offices.

Kvarter Poolen is an innovative office building in Arenastaden.

What growth opportunities do you see in 2022? We have significant growth opportunities in both the investment portfolio and the project portfolio in all our areas. In total, we have 1.5 million m² of building rights for a combination of commercial and residential premises. In Arenastaden, for example, we are only halfway through our plans; in Solna Business Park, we are starting the process of transforming the area into a more vibrant district; in Flemingsberg, the first new buildings are being constructed for the Royal Swedish Opera/the Royal Dramatic Theatre and Alfa Laval’s new offices; and in the city centre, we are preparing major moves for Covendum.

Alfa Laval moves from Tumba to new premises in Flemingsberg.

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Votes

15.8%

Fabege

Capital

15.8%

Backahill’s shareholding

Property value (SEK billion)

83.3

Rental income (SEK million)

2,889

Management profit (SEK million)

1,537

What is the main sustainability focus for 2022? We are continuing our successful work to make our buildings more energy efficient and to be active with various social initiatives in our neighbourhoods, such as the homework help programme Läxhjälpen, and a programme to help everyone become an active member of the community called Talangakademin. Together with Huddinge Municipality and Södertörn University, we have also received funding from Vinnova for the ‘Flemingsberg; an inclusive and cohesive urban environment’ project. A major focus area will be the work to significantly reduce the environmental impact of new construction. All of the stakeholders in the property and construction sector must work together to achieve this. By 2030, our goal is to have reduced our climate impact by ensuring that the life cycle analysis shows a 50 per cent reduction in carbon dioxide equivalents per gross area compared to 2019.


Wihlborgs is building the Kvartetten office property in the Hyllie district in southern Malmö.

A long-term strategy that works WIHLBORGS Ulrika Hallengren, CEO of Wihlborgs, on the company’s development. What were the two most important construction projects you completed in 2021? Kvartetten (Pulpeten 5) in Hyllie is definitely one of our most important projects right now, although it will not be completed until 2023. It achieves high ambitions for a low carbon footprint and human well-being without compromising long-term flexibility and high building quality. In 2021, we signed an agreement with Trygg-Hansa for 12,000 m² there. Another project we are very proud of is Prisma (Ursula 1) in Oceanhamnen in Helsingborg. As well as being the area’s iconic building, our hopes that it would become an innovative and attractive environment have been exceeded many times over. Prisma was completed during the pandemic and further moves will continue throughout 2022. What growth opportunities do you see in 2022? With the 27th consecutive quarter of positive net leasing behind us, we know we have a long-term strategy that works. The good revenue flow and cash flow, combined with stable value increases, put us in a favourable position to continue to grow, including

through successful project development. We currently have ongoing projects in our portfolio equivalent to investments of SEK 2.8 billion, more than ever before. We also continuously evaluate acquisition opportunities. What is the main sustainability focus for 2022? An important improvement is that we will include indirect emissions in our climate targets from 2021. As a next step, in 2022 we will review the possibility of introducing internal pricing of carbon emissions for projects in our existing portfolio and setting a target threshold for the carbon impact of new construction projects. In this way, we want to put the spotlight on our overall climate impact and motivate our entire organisation to work on climate change. We are also continuing to focus on upgrading our own stock and working with reuse instead of demolition and new construction.

Votes

11.0%

Wihlborgs

Capital

11.0%

Backahill’s shareholding

Property value (SEK billion)

50.0

Rental income (SEK million)

3,060

Management profit (SEK million)

1,815

39


backahill invest – catena

SeaFrigo’s new chiller and freezer facility is one of Catena’s latest investments.

Own land bank is a big asset Like Backahill, Catena takes a long-term approach to its property business. CEO Jörgen Eriksson and sustainability controller Amanda Thynell talk about the opportunities ahead and the company’s new sustainability goals. What were the two most important construction projects you completed in 2021?

Jörgen Eriksson, CEO

Jörgen: At our logistics hub in Morgongåva (west of Uppsala), we have built a 38,000 m² facility for Babyland, next to the existing one rented by Apotea. The hunting equipment company Widforss is also located there. The idea is to pool our logistics facilities to achieve economies of scale. The new facility is quite large by our standards and we have installed a solar panel system on the roof. Another important project is in the municipality of Åstorp, where we have built a 10,000 m² chiller and freezer facility for SeaFrigo, which handles fish and frozen vegetables. They are a third-party supplier, a segment we believe in a lot, because they bring food chains closer to the market. Demand is high for efficient facilities for chilled and frozen goods. We have also placed solar panels on the roof. It’s a perfect match since the summer is when the most energy is needed. What growth opportunities do you see in 2022?

Jörgen: We see huge growth opportunities for 20222023. Demand is high. Our customers have come out of the pandemic strong, with a big boost to their

40


businesses due to a strong link to e-commerce developments. We have a large land bank of 5.5 million m², which is a great asset as land will be in short supply in the future. As a company, you set new sustainability goals in 2021. Tell us about that.

Amanda: We refined our goals last autumn when we did a major rethink of what we want to achieve. The 2030 goals are for net-zero greenhouse gas emissions and net-positive biodiversity on our properties. A parallel goal is to have 100 per cent of our lettable space eco-certified by 2030. At the end of 2021, 15 per cent of the space was environmentally certified. It is important to have a long-term approach, partly because a lot of investments are needed that will take time to have an impact, such as energy efficiency and planting, but also because, in parallel, we need to create measurement points that allow for monitoring. We want to develop the interaction between people and the environment around our properties. For example, it is about having fewer hard surfaces. This results in less water accumulation, making the property less vulnerable. It also makes for a more pleasant environment. It’s great for the industry as a whole to be able to highlight these aspects, to be more constructive with the land and not harden the whole surface but try to work with different values, for example biodiversity. Jörgen: The decision to move towards the 2030 targets was not difficult to make, but now the challenge begins. A very strong driver for us is that our lenders are imposing increasingly stringent sustainability requirements. We are capital intensive and have to borrow a lot of money from banks and the bond market. The new normal will be for borrowers to pay penalty interest on anything that is brown and dirty. Logistics buildings are often built on valuable agricultural land. Where should agricultural land be located and what is your solution to the problem?

Jörgen: We reflect on it every day and on how we should think. We constantly weigh the social benefits against the disadvantages that come with using the land. Where we want to construct is about finding smart places from a logistical perspective, i.e. along transport routes to the most populated areas. If you take a bird’s eye view, you’ll see that we only have logistics facilities along the roads in Sweden. It doesn’t make sense to build far from the major transport routes. Somewhere along the way, we as a society have driven the trend towards more online shopping, and the question of logistics has skyrocketed. Amanda: How we use our square metres is all the more important. Arable land is a limited resource; when we use it, we must use it as wisely as we can. We are constructing taller buildings and putting solar panels on the roof. We are also looking at growing plants on roofs and facades, innovation is everywhere.

Amanda Thynell, Sustainability Controller

We also need to ask ourselves what valuable land is from a biological perspective; arable land is often monocultural today. We are committed to open landscapes and biodiversity. You operate in one of the hottest sectors of the property industry. What is the biggest challenge for Catena?

Jörgen: Everyone’s eyes are on logistics, and the bigger the honey pot, the more people want to come over and grab some. We have competitors who want to buy land from us. That’s the best compliment we could get, it means we have attractive locations. We are up against stiff competition when we want to acquire land. There is so much capital in the world. We are in a tough battle with developers who want to access land and international fund managers who are chasing returns. Another challenge is that discussions with municipalities have become more demanding, as they have an obligation to examine whether arable land should be used for other purposes. For example, we had to put a project in Ängelholm on hold. There are property developers who target logistics, who just want to build quickly and then sell to the big funds. Our conviction is that our long-term approach will win in the long run. Catena’s sustainability goals • Net-zero greenhouse gas emissions by 2030 • Our whole stock will be net-positive in terms of biodiversity by 2030 • 100 per cent of the Group’s lettable space will be environmentally certified by 2030 • Certified as a Great Place to Work with the ambition to reach TrustIndex of 85 per cent by 2025 (industry average in Sweden is 82 percent) • Exert a positive influence on our business partners and our environment by participating in the development of the community Votes

27.2%

Catena

Capital

27.2%

Backahill’s shareholding

Property value (SEK billion)

23.4

Rental income (SEK million)

1,387

Management profit (SEK million)

824

41



backahill invest – pea protein factory

A promising growth area When Findus took down its sign in Bjuv in 2017, the mood was bleak. Just four years later, the area is full of optimism, thanks to Erik Paulsson’s far-sighted investments. It is home to Sweden’s first pea protein factory. Erik Paulsson has always had a strong commitment to the community and knows how hard crises can hit businesses and residents. He also sees opportunities rather than obstacles. Although the outlook looked bleak, Erik decided to follow his heart and invest in the properties Findus left empty in Bjuv in 2017. Four years later, more people are working on the site than when the historic food company abandoned the premises. The area is buzzing with creativity and new businesses, mainly in food production. Backahill has significant shareholdings in several of the new companies. Foodhills AB has a vision of establishing circular food production. Demand for plant proteins is increasing globally and the first step is to focus on increasing the volumes, quality and profitability of pea cultivation. The company is investing heavily in new equip-

“ The area is buzzing with creativity and new businesses, mainly in food production.”

Erik Paulsson

ment to make Foodhills the most efficient pea factory in northern Europe. Foodhills Fastigheter AB develops and manages the 100,000 m² of office and industrial premises on the site. After the company

opened its doors in March 2018, it didn’t take long before the first tenants, Glimåkra Åkeri and Sydgrönt, arrived and today around 30 companies do business here. A building permit was obtained in December 2021 for the construction of a new logistics building of just over 27,000 m² for the meal kit delivery company Hellofresh. Two of the latest projects in Bjuv are GroPro AB and GroPro Solution AB, both of which are closely linked to pea cultivation.

43



backahill invest – pea protein factory

Far left: The peas are produced by Foodhills AB, where Karl Vilhelm Beckman is CEO. Right: Bengt Persson is pleased with the high level of interest in Swedish pea protein.

The protein facility in Bjuv is the first of its kind in Sweden. Using a gentle and energysaving technique, protein, starch and fibre are separated from legumes. The system is automated and self-learning. So far, the concept has been successfully tested with green and yellow peas and field beans, also known as fava or broad beans. “I met two Americans at an inventor’s forum who had developed the technology. They had faced some challenges over the years and needed help to commercialise the technology,” says Jonas Ekwall, CEO of GroPro Solution AB. The company’s vision is to sell the concept to smaller food producers around the world to create locally produced products with a low carbon footprint.

“Interest is great from the food industry in Sweden.” GroPro AB in Bjuv has exclusive rights to the technology in Sweden. Interest is great from the food industry in Sweden. Customers are basically queuing up. “Over the past four years, we have seen a 16-per cent growth in sales of vegetarian products, known as meat analogues, in Sweden. We expect to be able to produce up to 8,000 tonnes of pea protein per year,” says Bengt Persson, CEO of GroPro AB.

45



development & innovation As an active member of the community, Backahill is constantly working to develop Ängelholm and the Bjäre Peninsula. We take a broad and long-term view when completing our offering. We take a closer look at the trends that affect us and specifically what digitalisation brings.

47


Development & innovation

5

trends that impact us We identify five trends that impact our hometown and property development in Ängelholm and on the Bjäre Peninsula.

Digitalisation The digitalisation of our entire society is the biggest and most far-reaching trend that affects us all. It is changing the way we live, where and how we work, our buying habits and how effective our properties are. Some industries have already been fundamentally transformed by digitalisation, such as the music and travel industries, while others are in the early stages of transformation, such as the property and construction industries. Read more about smart properties on page 58. The workplace The pandemic accelerated digitalisation as the home became a workplace for many. For the individual, there are time savings from less travel and simplified life patterns. It was easier to pick up the kids from preschool, walk the dog at lunch or go for a run. Fewer trips means less environmental impact. The pandemic also prompted many companies to embrace effective digital tools to enable them to solve tasks remotely. At the same time, the lack of social interaction and creative interaction in physical meetings

48

was evident. All this places new demands on the workplace. It needs to be a meeting place with room for creativity. Offices are furnished more like a home while the home has an office space. Co-working allows individuals to work remotely in a creative environment outside the four walls of the home. Land shortages Sweden is a sparsely populated country, yet there is a shortage of land. On the one hand, there is a lack of arable land to produce enough food for a growing population, both in Sweden and in the world. We also need open spaces to enjoy nature and as green lungs in urban areas. On the one hand, the land shortage is about the scarcity of zoned land on which to build, especially in popular areas where people want to live. In Ängelholm and on the Bjäre Peninsula, arable land competes with the places where people also want to live and stay, and where companies want to establish themselves. One answer to this problem is urban densification. City centre locations, such as flat roofs, car parks and inner courtyards, can be used more efficiently. Densification brings people closer to


Development & innovation

The population is steadily increasing

43,633

50,000

people in Ängelholm, 2021

40,000

30,000

15,636

20,000

people in Båstad, 2021

10,000

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

Source: SCB

shops, restaurants and other services, and allows them to make greater use of public transport. Commerce The trend of steadily growing e-commerce started long before the pandemic, but it was given an extra boost by the fact that so many people in our society had to stay at home for so long. By 2021, Swedish e-commerce consumers bought goods worth SEK 146 billion. In 2019, the figure was SEK 87 billion. E-commerce accounted for 16 per cent of total retail sales, compared to 11 per cent in 2019. Both the city shops and bulk retailers on the outskirts of our cities were heavily affected. At the same time, several e-commerce giants have recognised the importance of physical showrooms and pop-up stores. Consumers like to touch and feel the goods before they order them. What’s more, strolling along pedestrian streets is a popular pastime, and proximity services are appreciated by all. Commerce in our cities is being reshaped and it is clear that e-commerce is here to stay.

Population growth The world’s and Sweden’s population is growing rapidly. The Öresund region, where we are based, has 4.1 million inhabitants, making it the largest and most densely populated metropolitan region in the Nordic region. The growth rate is high and the population is expected to increase to 4.3 million by 2028. Ängelholm and Båstad are also growing, see graph. Urbanisation is continuing and there is increasing interest in smaller and medium-sized towns and cities that are further away from the big cities. There is a clear link to digitalisation. With increased bandwidth and more widespread teleworking, it is possible to live further away from central cities. Smaller towns attract with lower housing costs and richer leisure activities. Both Båstad and Ängelholm have an older population than the national average. It is also clear that both municipalities are losing residents in the 16-44 age group. One explanation for this may be the lack of higher education.

49


Development & innovation

An expanding Ängelholm Backahill works to strengthen and position Ängelholm as a community where people thrive, live and work. Backahill’s internal development team regularly discuss what actions are needed and any existing gaps in provision. For Ängelholm to continue to grow and attract both visitors and residents, a number of criteria need to be met. This includes everything from housing for all ages, access to schools and leisure activities as well as health and social care, a wide range of shops, cafés, restaurants and other services, office and industrial space, but also a business-friendly climate. In addition, the city needs to move with the times. The world is constantly changing, placing new demands on property, infrastructure and sustainability. All these criteria are reviewed and evaluated by Backahill’s internal development team for Ängelholm. It meets once a month and includes Lennart Mauritzson, Svante Paulsson, Jerry Zander, Magnus Swärdh and Dag Thulin. “I see a very bright future in our region and we are very much part of it. We are building more homes and promoting trade. We have the arena, the hotel and plans for a campus – we have taken the long view here” says Svante. Backahill currently has a good mix of properties in Ängelholm, but there are some gaps in the portfolio. “If we look at the long term, we want more housing, these are good properties to own. A good example is Fågelsången 3, which is certified according to Miljöbyggnad Silver – a first in our portfolio,” says Lennart. “Looking back, we lacked a hotel and we created it in Hus 57,” says Dag. The transformation of the dilapidated city hotel

50

Paletten into Hus 57 a few years ago was a result of our long-term thinking. We saw a need for a larger hotel in the centre of Ängelholm to attract business travellers to stay, attract larger corporate conferences to the city, and give the people of Ängelholm a new place to call home. One of the gaps in the mix is premises suitable for setting up a higher education campus. In the spring of 2022, that gap was filled with Backahill’s acquisition of Hälsostaden’s portion of the Södra sjukhus site. The purchase means that plans for a campus in Ängelholm can now be realised. “It is places with higher education that are growing the most. This creates a need for housing and facilities so students can thrive. This, in turn, provides the basis for companies to grow because they need to bring skills into the company,” says Dag. Higher education and entrepreneurship are the basis of the Växtverket concept developed by Backahill. The Samskolan 5 property will receive additional premises, offices, lofts, youth housing and a meeting place for entrepreneurs and young business owners. A meeting place that provides workspaces, meeting rooms, support facilities, a café and sharing services in an open, modern facility. It adds to the city’s offerings as young entrepreneurs are given the opportunity to stay in their hometown and contribute to the city’s economic development. “It’s another example of our thoughts on what’s missing in the city. We can facilitate the co-working


“ It is places with higher education that are growing the most. This creates a need for housing and facilities so students can thrive.”



Development & innovation

concept here. It hasn’t caught on in Ängelholm yet,” says Lennart. “With co-working, you can share an office with others, live in Ängelholm, use the city’s shops and restaurants and perhaps live in one of our properties. We can cover the whole chain,” says Jerry. “Växtverket is a great addition. Demographically, we lose all the 20-year-olds. They flee the city, because of the lack of educational opportunities and the possibility for entrepreneurs to flourish here. They gather in other places where there are incubators. We have to get them to stay, settle and create customerbases here,” Dag explains. A recurring item on the agenda is how commerce is doing. In 2021, e-commerce grew by 20 per cent and year by year it is taking an increasing share of retail sales in Sweden. In Ängelholm, there is a logical division between city shops and bulk trade in the Midgård area, which complement each other. “Of course online shopping has an impact, but it’s important for us to support and retain our tenants on Storgatan. We see that many of the companies are also starting e-commerce offerings and developing the business through this,” says Jerry. “We need to enrich commerce with services and experiences. You can’t cut your hair online and you can’t have a cup of coffee either. We have to connect with e-commerce. Studies show that e-commerce businesses that also have physical stores sell more online. With ÄHLM Market we are creating a commerce site where all kinds of things can be housed. Here we want to have a wide range and the offer should be changeable over time,” says Dag. The shortage of land is becoming increasingly evident and it is often discussed in the development group. Construction needs to be concentrated in order to continue to have areas for cultivation and experiencing nature. Urban densification is therefore an important social and sustainability issue for the company. “I think we should work on densification a lot more. We have to be conservative with the land that is available, we have the most fertile soil here in Skåne,” says Svante. “There are a lot of stakeholders who do not want more neighbours, their view spoiled etc. Anyone can appeal, which makes our building processes slower. But there are many benefits to densifying a city. It brings more life and movement to the city and more customers to the city centre, which is a circular benefit. The more densely we design our communities, the easier it is to live in them. We need to have a public debate about densification,” says Dag.

ETT MAGA

SIN OM ÄN

GELHOLMS

NYA MÖTES PLATS | VÅ REN

2022

Många mat och möten “With ÄHLM Market we are creating a commerce site where all kinds of things can be housed.”

Top image from left: Svante Paulsson, Dag Thulin Bottom image from left: Lennart Mauritzson, Jerry Zander

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A strong Bjäre Båstad and the Bjäre Peninsula are our hometown that we cherish, both as a destination for visitors and tourists, and as a vibrant community. Our development team is constantly looking for new opportunities to strengthen the region. 54


Development & innovation

Sara Karlsson

The population of Båstad is growing slowly but steadily. But in contrast to Ängelholm, which is a year-round municipality with growth ambitions, Båstad is more of a summer resort. This is particularly reflected in Backahill’s property holdings, which consist mainly of hotel and restaurant facilities, as well as the all-important tennis stadium and its involvement in the port. “A lot of our focus is on nurturing the destination. There is a demand for housing for those who work on the summer resort’s activities,” says Lennart Mauritzson. “Apelrydskolan’s new building was completed last year. The need for staff accommodation is enormous. In retrospect, we could have built another floor,” says Fredrik Henrysson. Backahill’s development group for Båstad consists of Sara Karlsson, Lennart Mauritzson, Fredrik Henrysson, Magnus Swärdh, Jerry Zander and Dag Thulin, and meets once a month. “It is very important to develop our hometown. We, as a family, are very passionate about it. We want to encourage people to stay, if they wish to do so. We do a lot of work to create the conditions for younger people to stay, everything from education on a campus in Ängelholm to jobs at the hotels on Bjäre. In Båstad there are educational programmes for tourism, services and gardening,” says Sara. In a small town it is particularly important to establish partnerships to make things happen. The

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development group meets with the municipality several times a year, as does Båstad Tourism and the business community. Via the Två Halvöar project there are contacts with like-minded companies on the Kulla Peninsula for joint marketing. Båstad Företagsby has created a well-developed network within the local business community. In Ängelholm, most property owners cooperate, but in Båstad it is a bit more difficult. “Here we talk to the municipal property company, but otherwise there are a lot of small players here in Båstad that we have no contact with. Many have owners in Stockholm who are not sufficiently present all year round which would make them an equally natural part of the development of Båstad,” Fredrik notes. One of Backahill’s priorities is retirement homes. Soon the huge 1960s generation will enter the world of seniors. It’s a generation that has been part of the digital transformation in a very different way than those born in the 1950s. As a result, different demands will be placed on our accommodation. We also live longer and are more dynamic at older ages. “We think a new type of senior accommodation will appeal where there are co-working spaces for those who want to keep working plus it’s easy to socialise,” says Dag. Sollyckan – a retirement home that you actively choose yourself – is based on this reasoning. The property offers exceptional qualities with convenient amenities, space for a car in the basement and proximity to the shops and outdoor cafés along

” One of Backahill’s priorities is senior accommodation. Soon the huge 60s generation will enter the world of seniors.”

Köpmansgatan in Båstad. The glazed courtyard becomes a communal living space that guarantees a social connection. The big tourist draw in Båstad besides tennis is Norrvikens trädgårdar. It’s a passion project that we are particularly fond of. “We need to add to Norrviken and create new visitor attractions. That’s why we built the new entrance building with a shop and the Ravinen cultural centre,” Dag explains. The Group is constantly looking at what is missing to keep the beautiful park going. “We are currently looking at a hotel project adjacent to Norrviken. Since we have the possibility of taking a long-term view, we are able to work with that kind of project. We are talking about it happening within five years,” says Fredrik. “It’s important to be courageous, passionate and persistent,” says Lennart.

The development group is continuously looking at how Båstad and the Bjäre region can be further developed.

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Fredrik Henrysson

Jerry Zander

Dag Thulin


Smart buildings “We are at a crossroads between the functionality of the traditional property sector and a new digitalised infrastructure that makes the operation and maintenance of buildings easier and more efficient. A major shift is happening,” says serial entrepreneur Robin Rutili.


Development & innovation

Sensors at the air intake read temperature, carbon dioxide content, airflow, air pressure and human presence in the office space. The lighting and temperature in each room is adjusted according to the number of people in it. This saves energy and the lifespan of machines, and maintenance can be better planned. The example is not new, it has been a reality in the Sweco building on Gjörwellsgatan in Stockholm for the last ten years. The tenant Sweco and the property owner AMF Fastigheter replaced all technical systems in 2012. The investments have reduced the property’s energy consumption by 70 per cent. Intelligent buildings and smart houses have been talked about for more than 25 years, but it’s within the next five years that the big change will happen, according to Robin Rutili, serial entrepreneur and co-founder of Buildroid, in which Backahill has a five per cent stake. It is only now that sensor technology, internet connectivity and algorithms have become sufficiently advanced and affordable to allow new smart solutions to take off on a wide scale. Buildroid is a company that invests in proptech – smart property technology. The company’s goal is to establish an ecosystem of companies that accelerate progress in making buildings smarter through efficient, safe and sustainable solutions that are easily adaptable to the entire property industry. “The next few years will see the first wave of digitalisation in the property industry. Initially, this will involve reducing consumption costs for heat, water and electricity. The technology for this is mature today. It’s more about changing the way the industry works, how contracts are written and how workflows look so that things start to happen,” says Robin Rutili. Digitalisation will also change the property industry. Just look at how we buy holidays, consume music or buy tickets to events today. With rising energy prices and a shortage of land, it is important to manage a property more efficiently. Anyone who owns and can interpret the data will have the upper hand. “At Buildroid, we don’t work on developing specific applications. We focus on bringing ecosystems together and ensuring that properties have the right technical infrastructure. We are a number of parties looking at what our common interests are. There are a lot of very good examples in different areas.

Robin Rutili

Everything we do needs to be scalable so it can be used by a lot of people. A very important factor for benefiting from digitalisation is IT security. If other operators are allowed to build networks in a property owner’s buildings, it is difficult to maintain control. A data-secure multi-network in a building would be very useful. There is no need to set up a network for alarms, electronic door locks, etc. Instead, all functions are connected to the property owner’s network, which should be well-provisioned and have a high level of security. With the right infrastructure in place, marginal costs to add new applications and services drop. Buildroid aims to highlight infrastructure solutions that enable continuous, secure improvements where even the simplest service increases marginal utility.”

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Our sustainability work Since its creation in 1998, Backahill has been acting for the long-term sustainable development of the company and the region we consider our own. Our community involvement has always been strong and giving back to the local community we operate in is part of the company’s very essence.

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Our sustainability work

The construction and property sector currently accounts for a large share of Sweden’s total climate impact. We have a big responsibility to reduce our carbon footprint and also to inspire others to change. In order to provide direction and also obtain measurable targets, we have developed an environmental and energy strategy in cooperation with Öresundskraft, which we worked on throughout 2021. In the strategy, we have identified a number of key performance indicators with timelines for when we need to meet them. Through our environmental policy, we ensure sustainability in current and future development projects. Our focus is to invest sustainably and take the economy, people and the environment into account, and to be an attractive employer. It is important that we act in a long-term and responsible manner in order to continue to have a stable financial basis, which is the basis for future investments and initiatives. Over time, a sustainable economy supports the achievement of the SDGs. We are strongly committed to our home region. We take responsibility, take a long-term view and contribute to development and jobs for social sustainability. We like to get involved in local associations and organisations that promote health, safety, employment and well-being. We are also passionate about creating development in the city centre, both in terms of businesses and housing, and supporting and encouraging young entrepreneurs, innovators and business owners, for example through Campus Ängelholm and the Växtverket concept.

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“We have a big responsibility to reduce our carbon footprint and also to inspire others to change.”

Our environment and energy goals 2023 we have a full waste sorting service for all our apartment customers 2023 we will have reduced water use 2023 we are building environment- and climate-smart properties 2025 our energy use will be climate neutral 2025 there will be electric car charging in proximity to all our properties 2025 we will have significantly reduced our carbon footprint from travel and cars


Environment and energy strategy Backahill’s core business is the development and management of properties. This needs to be done sustainably. The world’s resources are finite and our impact on them must be reduced so that we can find a balance in our ecosystem. We want to contribute to the sustainable development of society. We do this by working towards the Sustainable Development Goals of the UN’s 2030 Agenda, sustainable management, making it easier for our tenants to act sustainably and being a good role model. This also contributes to our competitiveness and to being an attractive employer. We need to take a long-term view, raise awareness of our efforts and focus on common goals to meet the demands of the future. Our Environment and energy strategy, developed in cooperation with Öresundskraft, sets out a plan for

what we want to achieve in terms of environmental and energy issues, and how we will go about achieving our goals. We continuously measure and evaluate our environmental and energy performance in order to make informed decisions on policies and activities, identify what needs further development and demonstrate progress in our work. 2020 is our starting point. To develop sustainable communities for our customers, we need to continue to work on transparency and smart solutions, be open to innovation and have a responsible approach to resources. We are actively working on urban densification to save land outside communities that can be used for farming or nature while shortening travel distances. Existing infrastructure should be used as far as possible.

Electric vehicle charging To facilitate and encourage the use of electric vehicles, charging the vehicles needs to be easy. With every new construction, we make sure that the charging of electric vehicles is possible. In the near future, all our buildings will be equipped with the possibility to charge electric cars.

Water We are mindful of the importance of conserving water and protecting wastewater treatment systems and our waterways from pollution. We monitor water use in our properties and investigate whether high usage can be addressed. For tenants whose businesses require specific treatment equipment we actively collaborate on solutions.

Travel and transportation We are conscious of the overall climate impact of travel and transportation. We take our share of the responsibility and make it easier for both staff and tenants to travel in a more sustainable manner. We are gradually replacing all our vehicles with hybrid and electric vehicles. We put a lot of effort into reducing our travel, opting out of air travel for other more sustainable means of transport where possible or replacing travel with digital meetings. For tenants, we ensure that there is bike parking for everyone and electric car charging facilities.

Waste sorting A high recycling rate saves both energy and natural resources. This requires simple, accessible and convenient facilities and committed tenants. Our objective is to provide opportunities for households to sort all recyclable materials in close proximity to all our properties. When renovating or constructing new buildings, we prioritise providing appropriate spaces in the apartments.

Environment- and climate-smart properties Resource optimisation and circular thinking are important starting points for sustainable construction. We achieve this by using long-lasting materials, existing infrastructure, land already in use, prioritising urban densification, and using old structures and materials wherever possible. All new buildings and major renovations are based on the requirements of the Miljöbyggnad Silver environmental certification system as a minimum. In new constructions and renovations, we don’t use materials that are harmful to the environment or health, and we aim to avoid particularly hazardous substances in construction and engineering products. We set environmental requirements for building materials and our suppliers with a focus on waste sorting and recycling as well as the use of fossil-free energy and carbon footprint reporting. We support the construction and civil engineering sector’s roadmap for fossil-free competitiveness.

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Our sustainability work

Current projects The UN’s Agenda 2030 is an ambitious agenda for sustainable development agreed by the world’s nations. The 17 SDGs are designed to help us achieve social, economic and environmental sustainability. This means that today, we must live in a way that allows future generations to have the same opportunities as us. Everyone has a role to play if we are to achieve these goals. Each and every day, Backahill wants to contribute in any way possible to making the region in which we operate a more sustainable place, and several of the UN’s global goals are integrated into our project process. The 17 goals work in synergy and influence each other. Based on our activities, we have chosen to highlight five goals for 2021: Goal 3: Good health and well-being Goal 7: Sustainable energy for everyone Goal 9: Sustainable industry, innovation and infrastructure Goal 11: Sustainable cities and communities Goal 13: Climate action We have chosen to certify all new buildings and major renovations according to Miljöbyggnad Silver – a clear sign that we are committed to environmental issues and think about those who will be living in our buildings. Backahill works actively to create a vibrant city centre with a variety of shops, cafés and restaurants, as well as activities and experiences to ensure that the centre continues to be a popular meeting place and a place where lots of people find things to do. We are also actively working on urban densification to save other land for nature and cultivation. Two current projects in Båstad and Ängelholm provide examples of this. In the middle of Båstad on Köpmansgatan we are creating a new meeting place – Gamlegården – and construction started in early 2021. Here we will combine long-awaited central housing with retail and social activities. On the ground floor, several businesses will open and create new jobs, including a grocery store and a restaurant around the courtyard. New charging stations will be installed for both visitors and residents. We have also prioritised and

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added areas for waste sorting for each activity. Our hope is that Gamlegården, with its year-round activities, will be an important addition that generates new flows to Båstad city centre. In 2021, construction began on Fågelsången 3, a completely new environmentally classified residential area in central Ängelholm with a focus on longterm sustainable materials and solar panels on the roof. It is also part of Backahill’s vision to densify Ängelholm’s city centre as the site is already used as a multi-storey car park. A U-shaped multi-family building is now being built on top of the car park’s edges, adding 69 new apartments and a premises in central Ängelholm. The car park will offer the possibility to charge electric cars. The project is scheduled for completion in February 2023. In 2021, our plans to open a new central meeting place under our own management on Storgatan in the centre of Ängelholm took shape. ÄHLM Market will open in 2022 on the premises of a former department store. The space will offer a mix of retail, food, entertainment, activities, events and parcel distribution that will breathe new life into old premises where we will make the most of the existing building’s frames. With ÄHLM Market we want to add to the current offer. The project has several qualities: it creates pedestrian traffic in the city centre, new workplaces and a new meeting place where multiple generations can come together. In the centre of Båstad there is a place that is poorly used today. We are working to build a sustainable retirement home called Sollyckan [Sunny happiness], named after the glazed courtyard that connects the buildings. The communal courtyard under the glass roof provides a lovely rain-free environment to spend time in all year round and also contributes to efficient energy conservation through the use of solar heat. The Zoning Plan was adopted by Båstad Municipality in December 2021 but has been appealed. With the Samskolan 5 property in the centre of Ängelholm, we want to densify the city, create new jobs and encourage the support of young entrepreneurs and business owners. The current businesses and parking areas will be supplemented with premises, offices, housing and a meeting place for business owners and young entrepreneurs according to the Växtverket concept. Our ambition here is to create a meeting place for young entrepreneurs and


Miljöbyggnad Silver By using Miljöbyggnad Silver in design and production, we create buildings with higher environmental performance. This is a tool to help conserve energy, improve the indoor environment and phase out hazardous materials. Backahill AB builds properties according to Miljöbyggnad Silver, which means that the building exceeds legal requirements and industry standards. A total of 15 indicators are assessed in the areas of energy, indoor environment and materials. If the newly constructed building is managed in accordance with Miljöbyggnad iDrift, it can be certified after three years. The certification is done by a third, external party – Sweden Green Building Council. To achieve Miljöbyggnad Silver certification, requirements are made regarding: • Heating power demand • Solar heat load (cooling demand) • Energy use • Share of renewable energy (solar/wind/water/biomass or waste heat from production) • Noise environment • Radon • Ventilation • Damp proofing • Thermal climate, winter • Thermal climate, summer • Daylight • Legionella • Construction products • Hazardous substances • The structure and foundation’s climate impact

Backahill works to make Campus Ängelholm a reality so that higher education can be offered.

Miljöbyggnad iDrift is a certification system to improve and certify buildings in operation by working with the building, its operation and management. The system includes five areas: indoor environment, health, climate impact, resources and condition.

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Our sustainability work

Fågelsången 3 in Ängelholm and Norrvikens trädgårdar in Båstad are examples of projects with clear sustainability benefits.

business owners who can get support and a sense of community to help them grow. Resources such as meeting rooms and services are shared. Young entrepreneurs can stay in the city and contribute to its development. To further strengthen Ängelholm’s attractiveness, Backahill has initiated a business group that, together with Ängelholm’s business community, works to attract higher education to the city. In 2021, a major step towards realising the vision of a Campus Ängelholm was taken when Ängelholm Academy, Ängelholm Municipality and Halmstad University signed a letter of intent regarding collaboration. The ambition is to have higher education and other post-secondary education in Ängelholm by 2025 in close cooperation with the business community. Other facilities and an expanded range of services will also be needed to make it an attractive student area. Getting more young people to continue their education in Ängelholm is positive for the demographic composition and economic development of the city. Norrvikens trädgårdar is an inherently environmentally positive activity that harbours high biodiversity and provides several ecosystem services in the form of species conservation, water purification and infiltration surfaces. A new entrance building to the popular park was opened in 2021. Next to Norrvikens trädgårdar’s entrance, we created a long-awaited new cultural space for the

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whole of Bjäre in 2021 when the Ravinen cultural centre was built and opened. Ravinen is the vibrant and dynamic meeting place for art, music and design that was missing from the region. In 2021, investments were made in a large solar panel system for Båstad Företagsby. A total of 772 solar panels were installed on roofs with low slopes facing east and west. The solar panels at Båstad Företagsby, which houses around 60 companies, a restaurant and conference facilities, will be able to produce nearly a quarter of a million kilowatt hours annually for its own consumption. Apelrydsskolan’s new building was completed in 2021 and houses new student accommodation and accommodation for the seasonal workers in the Båstad area. The school can expand its activities, and when students are on summer holidays, the rooms can be used by hotel staff. Charging stations will also be installed at the property. At Catena Arena, Backahill is continuing the work to create a unified area with facilities for sports and leisure, called ÄHLM Arenastad, through Arenabolaget i Ängelholm AB and in cooperation with the municipality. Our vision of creating an active meeting place for everyone who wants to exercise, socialise and experience live sport is becoming a reality. By clustering venues, ancillary resources can be shared and travel routes to activities can be shortened. The renovation and extension of the


Genuine community commitment

Catena Arena continued throughout the year and a new, long-awaited ice training hall was completed in August. A new phase was also launched, the construction of a new padel facility with padel courts, a gym and a physiotherapy clinic under one roof. The old rafters from Catena Arena are being reused to support the roof of the padel facility, which will open in 2022. The roof of Catena Arena and the padel hall are ready for solar panels and the charging infrastructure will be reinforced. In Bjuv, activities continue to be developed in the abandoned Findus production area that Backahill, through Foodhills AB and Foodhills Fastigheter AB, took over a few years ago. Foodhills operates organic, circular food production that contributes to sustainable global development. New and additional jobs have been created in the area, old buildings and facilities are being reused and new sustainable ways of farming have been developed. GroPro AB was established in 2021. It is a fully Swedish food company that extracts proteins from Swedish green peas and other Swedish legumes using a unique method without chemicals and using minimal energy. The result is a completely Swedish protein concentrate that can replace meat and imported soya in food. Production will start at the factory premises in Bjuv in 2022. By partnering with Foodhills, GroPro has access to high-quality green peas with short transport distances, which is another climate benefit.

Our commitment to local associations and organisations is long-term and comes from the heart. We give back to our community and support activities that promote health, safety, employment, equality and well-being. Some examples of the associations we support include: • Alla kan IF • Bjäre runt • Båstad GIF • Dansfabriken • Engelholms Volleybollsällskap • MIND • Rögle BK • Vattenpoolarna • Vejby IF • Ängelholms Brottarklubb • Ängelholms FF • Ängelholms Hembygdspark • Ängelholms Musikkår

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It is about more than dance Dansfabriken is one of the associations that Backahill supports. We mainly focus on young people, and at Dansfabriken 80 per cent of the members are between four and 14 years old.

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Our sustainability work

Frida Paulsson (left) from Backahill and Sofie Hofvendahl, Dansfabriken, surrounded by some of the association’s active dancers.

Dansfabriken is one of the largest associations in Ängelholm in terms of number of active members. In 2021, 900 people between the ages of 2 and 81 danced at Dansfabriken. Sofie Hofvendahl has been involved in the association for 20 years, the last ten as its president. “This is a place where children and young people learn to grow as human beings. Of course, it’s about dance, musicality and athleticism, but it’s also about a sense of belonging and identity. Showing who you are, being seen and heard, and developing your responsibility,” says Sofie. The last two years have been tough. The association does not compete but organises two shows a year, and the cancelled events could not be replaced by other events that could have provided income to the association. “We’ve had to do the impossible. Our activities are not adapted to groups of seven people and one teacher, so we have incurred double costs. It’s great that we can start performing again. The dance groups are mainly made up of children and young people, 80 per cent of whom are between

“This is a place where children and young people learn to grow as human beings.” four and 14 years old. But everyone should be able to dance,” says Sofie. “We have senior activities, both here and in retirement homes, and dance groups for people with disabilities. These groups require double the amount of teachers, which makes it financially unviable. We need sponsors to be able to run these activities.” Backahill is the main sponsor of Dansfabriken. “Backahill is such a big company with a good reputation. This creates a buzz, so that others want to join in too. Without sponsors, the price of attending the dance classes would have been much higher. Now everyone is able to afford it. We want dance to be accessible to as many people as possible. Diversity is important.”

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Administration report The year’s financial events include a major transaction – the sale of SkiStar – which operates alpine ski resorts.

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Administration report The Board of directors and CEO of Backahill AB, company registration number 556590-8547, hereby submit the following annual report and consolidated financial statements. Company’s head office: Ängelholm. Company’s accounting currency: Swedish krona (SEK). All amounts are reported in SEK thousands unless stated otherwise. As a result of this, differences due to rounding up or down can occur. OPERATIONS The operations consist of consulting services within finance and management, as well as the management of properties and securities. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR 2021 was the second year of the Covid-19 pandemic. The Group continued to maintain a high level of activity in terms of new developments and made bold decisions regarding various acquisitions and divestments of companies in order to streamline its holdings, and be better prepared for business after the end of the pandemic. The Company quickly took precautionary measures again this year for our employees and maintained procedures for dealing with our tenants, in particular where there was a need to be out on the premises and in our buildings and properties. We have continued to work hand in hand with our tenants to enable healthy businesses to survive this pandemic and continue to earn rental income in the long term. Management of the Company’s strategic securities holdings in 2021 generated a good operating result and strong cash flow. The Backahill Group still owns more than 10% of the shares in Diös Fastigheter AB (publ), Fabege AB (publ), Catena AB (publ), Wihlborgs Fastigheter AB (publ) and Brinova Fastigheter AB (publ). During the year, holdings in Wihlborgs, Fabege and Diös were increased. The entire holding in SkiStar AB (publ) was sold, having a positive effect on results. In addition, subsidiary Backahill Utveckling AB sold its entire holding in Cernelle AB to German company Dermapharm AG, as well as its holding in Competensum AB. Backahill Utveckling AB also acquired the company Backahill Kyrkan 2 AB, renamed Ängelholm Market AB from Backahill Båstad AB. Backahill Bjäre AB sold its subsidiaries Båstad Financing AB and Norrviken Event AB to Backahill Förvaltning AB. The companies, together with Backahill Invest AB and Inis Sweden AB then merged with the Parent Company Backahill Förvaltning AB. Backahill Bjäre AB acquired additional shares in Båstadtennis & Hotell AB, owning 34% of the company at the end of the year. Additionally, Backahill Bjäre AB divested its 33% shareholding in Pepe’s Bodega AB to GRAM GROUP AB. Following this acquisition, Pepe’s Bodega AB became a 100% owned subsidiary. GRAM GROUP AB and its hotel operating subsidiaries achieved a good result after financial items despite many uncertainties and challenges in terms of restrictions due to the pandemic. The establishments show a growth in turnover and the occupancy rate has increased. Renovations have taken place at all of the establishments.

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Backahill Fastigheter AB acquired the company SKR Lager 107 AB, which changed its name to Backahill Loglängan AB. Backahill Påfågeln AB and Backahill Lärkan AB merged with the parent company Backahill Cityfastigheter AB. Subsidiary Backahill Båstad AB acquired all the shares in Norrviken Utveckling AB from Backahill Bjäre AB. Norrviken Utveckling AB subsequently acquired the companies Backahill Elestorp AB, Lilla Båstad AB, LB Parkering AB, Norrviken Park AB and Båstad Konst- och Kulturfastigheter AB, which were then merged into Norrviken Utveckling AB. In December, all shares in Norrviken Utveckling AB were sold to EPAX Förvaltning AB. In addition, Backahill Båstad AB acquired Backahill Torekov AB, which owns the properties from which Torekov Hotel operates. Hamnbacken AB sold the Turisten 26 property. Backahill Hjorten AB sold the Jungfrun 1 property to a newly formed company – Backahill Jungfrun 1 AB. Backahill Hjorten AB was subsequently sold to an external party. In June, the student residence was completed by subsidiary Backahill Apelryd AB, and former subsidiary Båstad Konst- och Kulturfastigheter AB completed construction of the art gallery – the opening took place in October. The rental apartments in Claerence Village AB were completed and tenants moved in on 1st April. A new staff building and a new entrance building for the company Lilla Båstad AB were completed before the summer season began at Norrvikens trädgårdar. In Backahill Gamlegården AB, the construction of a new property which will contain commercial premises and rental apartments is underway. There is also new construction underway at the Fågelsången 3 property, owned by Backahill Bostäder AB, where around 70 new rental apartments are being built. In the subsidiaries holding property portfolios all of the properties are fully rented, moves have occurred at only a few properties during the year. Backahill Skåne AB’s 50%-owned associated company, Backerhof Holding AB, sold the company Backerhof 4 AB to an external party during the year. Backastad AB sold Backastad Årsta AB. Subsidiary Backastad Graninge 1 AB completed the new construction of rental apartments. Backahill Utveckling AB sold PMSA Aktie-sparklubb AB to Backahill AB. Backahill Utveckling AB formed three new joint ventures with external partners: GroPro AB and GroPro Solution AB are looking at the possibilities of processing pea protein; and Ankarhill Fastigheter AB is building a padel hall at Catena Arena in Ängelholm. In January, S&E Stockholm Horse Week AB was sold from subsidiary S&E Sport & Event Holding AB. SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR We are following the developments of the war in Ukraine carefully and continuously analysing the risks to our business. We expect the war to have a limited impact on our operations, although there may be some delivery problems for ongoing projects. However, the wider context creates uncertainty in financial markets with rising prices, leading to lower purchasing power, rising inflation and the risk of rising interest rates. Our assessment at this stage is that the short-term impact will be limited,


and with a strong balance sheet and good liquidity in the Group, we can act to ensure continued long-term growth. In March it was announced that Backahill was selected to purchase the Hälsostaden part of the Södra Sjukhus area in Ängelholm. The property purchase, which comprises 61,000 square metres, means that Backahill can now go ahead and realise Campus Ängelholm. Company Backahill Gamlegården AB sold the Banken 2 property in Båstad. Construction of a new car vendor hall has started on a property belonging to Backahill Taktäckaren AB. Backahill Båstad AB signed an agreement regarding the sale of the companies Fastighets Utveckling i Båstad AB and Tomtbolaget AB to an external party. GroPro Solution AB acquired additional shares in the company GroPro AB, which is now a subsidiary. Backahill AB acquired shares in Backahill Invest AB. Backastad AB acquired shares in Backastad Nöthagen AB. EXPECTED FUTURE DEVELOPMENT AS WELL AS SIGNIFICANT RISKS AND UNCERTAINTY FACTORS Backahill will continue to be active and participate in the development of north-west Skåne. A strong balance sheet and stable cash flow allows the group to be equipped for interesting projects in the future. Profitable growth with manageable risk-taking is a fundamental business principle within the Group. The defined risk areas of business environment risks, operational risks and financial risks are managed continuously as an integral part of the business and with a clear strategy for each risk area. The operational and financial risks are estimated to have decreased in 2021.

The pandemic is not currently classified as a public health threat and restrictions were completely lifted on 9 February 2022. The tourism and meetings sectors are now enjoying a more favourable trend after two years where the pandemic and various restrictions reduced the possibility of holding physical meetings. This is expected to have a positive impact on GRAM GROUP, but the risk of a resurgence of the pandemic and the need to restructure operations cannot be ignored. FINANCIAL RISK MANAGEMENT Interest rate risk The Company has long-term credit facilities with set conditions which at present include a three-month fixed interest term. Credit risk Current credit facilities amount to SEK 2,421 million, of which SEK 1,815 million was utilised as of 31 December 2021. Access to capital via loan agreements is covered by set terms and the Company is well within the limits of these. Liquidity risk In recent years the Company has reported positive cash flow from operating activities. In the coming year, the Company will continue to focus on reducing the Group’s interest bearing liabilities in respect of equity financing and on using working capital for investments in properties and projects. OWNERSHIP The Company is 100% owned by the Erik Paulsson family.

Multi-year review SEK thousand

2021

2020

2019

2018

636,332

324,870

300,978

268,867

GROUP Net sales Profit after financial items Total assets Equity/assets ratio, % Number of employees

1,722,538

983,935

512,995

441,760

12,096,550

10,373,195

9,423,283

9,306,314

81.92

79.77

77.77

75.46

363

149

93

87

PARENT COMPANY Net sales Profit after financial items Total assets Equity/assets ratio, % Number of employees

3,457

3,564

3,509

4,009

585,152

337,042

-101,780

23,553

4,446,619

3,991,058

3,796,681

4,286,161

99.49

96.87

95.49

87.68

7

7

7

7

For definitions of key ratios, see Accounting and measurement principles.

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Changes in equity GROUP Opening balance

Other equity Other including profit Non-controlling capital for the year interest

Share capital 500,000

0

Dividend Extraordinary General Meeting

7,751,063

23,991

Total 8,275,055 -60,125

-60,125

Non-controlling interest in divested companies

-16,340

-16,340

Non-controlling interest in acquired companies

30

30

7,338

0

Distribution to non-controlling interests

-6,296

-6,296

Non-controlling contributions

127

127

Non-controlling change

-7,338

1,720,094

-3,094

1,717,000

500,000

0

9,403,694

5,756

9,909,450

Share capital

Revaluation reserve

Retained earnings

Net profit for the year

Total

500,000

125,019

3,000,251

240,953

3,866,223

Allocation as per AGM resolution:

240,953

-240,953

0

Dividend Extraordinary General Meeting

-60,125

Net profit for the year Closing balance

PARENT COMPANY Opening balance

Net profit for the year Closing balance

500,000

125,019

3,181,079

-60,125 617,660

617,660

617,660

4,423,757

Proposed appropriation of profits The Board of directors proposes that the profit at the Company’s disposal, comprising (SEK): Retained earnings Dividend at extraordinary general meeting on 10/11/2021 Profit for the year

3,241,203,523 -60,125,448 617,660,073 3,798,738,148

be appropriated as follows: Carried forward

74

3,798,738,148


Consolidated income statement SEK thousand Net sales Other operating income

Note

01/01/2021

2, 3

636,332

01/01/2020

1 -31/12/2021 -31/12/2020

4

324,870

22,109

35,634

658,441

360,504

Operating expenses Raw materials and consumables Other external expenses Personnel costs

-160,090

-99,581

5, 6

-190,435

-93,953

7

-219,603

-108,040

-120,312

-146,160

Depreciation, amortisation and impairment of tangible and intangible fixed assets Result from participations in group companies

8

685,085

-1,250

Profit from shares in associated companies and jointly-controlled companies

9

793,483

543,458

Other operating expenses

-5,714

-8,492

782,414

85,982

2

1,440,855

446,486

Result from other securities and receivables accounted for as fixed assets

10

294,323

557,113

Other interest income and similar profit/loss items

11

10,631

6,917

Interest expense and similar profit/loss items

12

Operating result Result from financial items

-23,271

-26,581

281,683

537,449

Profit after financial items

1,722,538

983,935

Pre-tax profit

1,722,538

983,935

Tax on profit for the year

-2,650

-29,275

-2,888

0

Net profit for the year

1,717,000

954,660

Parent Company’s share of net profit for the year

1,720,094

956,331

-3,094

-1,672

Deferred tax

Non-controlling share of net profit for the year

13

75


Consolidated balance sheet Note 1

31/12/2021

31/12/2020

Capitalised expenditure for research and development and similar

14

0

3,828

Right of tenancy and similar rights

15

0

0

Goodwill

16

70,999

80,095

70,999

83,923

17, 18

2,047,206

2,012,809

Equipment, tools, fixtures and fittings

19

88,605

109,665

Construction in progress and advance payments for tangible assets

20

330,334

278,423

2,466,145

2,400,897

3,791,169

3,010,971

SEK thousand ASSETS Fixed assets Intangible assets

Tangible assets Land and buildings

Financial assets Shares in associated companies and jointly-controlled companies Receivables from associated companies and jointly-controlled companies

21, 22, 23 24

95,673

17,956

Other securities held as fixed assets

25, 26

3,744,378

3,804,173

Deferred tax assets

27, 28

870

5,818

29

56,895

63,539

Other long-term receivables Total fixed assets

7,688,985

6,902,456

10,226,129

9,387,276

26,591

30,832

1,710

69,640

0

1,922

28,301

102,393

Current assets Inventories etc. Raw materials and consumables Finished products and goods for resale Advance payments to suppliers Current receivables Trade receivables

20,054

8,736

Receivables from associated companies and jointly-controlled companies

16,219

6,442

Other receivables Prepaid expenses and accrued income

30

18,997

17,706

10,831

15,089

66,101

47,973

201

1,741

Short-term investments Other short-term investments Cash and bank balances Total current assets TOTAL ASSETS

76

31

1,775,818

833,812

1,870,421

985,919

12,096,550

10,373,195


SEK thousand

Note 1

31/12/2021

31/12/2020

500,000

500,000

EQUITY AND LIABILITIES Equity

32

Equity attributable to Parent Company shareholders Share capital Retained earnings, including net profit for the year

33, 34

Equity attributable to Parent Company shareholders

9,403,694

7,751,063

9,903,694

8,251,063

Non-controlling interests Non-controlling interests Total equity Provisions

5,756

23,991

9,909,450

8,275,053

35

Provisions for pensions and similar commitments

1,068

810

Provisions for deferred tax

18,791

16,863

Other provisions

15,000

0

Total provisions

34,859

17,673

0

28,000

515,333

1,464,650

311

466

515,644

1,493,116

Long-term liabilities

36

Construction loans

37

Liabilities to credit institutions Other liabilities Total long-term liabilities Current liabilities Overdraft facilities

31

28,390

0

Construction loans

37

110,402

1,695

Liabilities to credit institutions

1,296,929

412,197

Advance payments from customers

27,024

0

Trade payables

63,667

74,732

0

345

Liabilities to associated companies and jointly-controlled companies Current tax liabilities Other liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES

38

2,290

3,425

29,085

17,867

78,810

77,091

1,636,597

587,352

12,096,550

10,373,195

77


Consolidated statement of cash flows SEK thousand Operating activities Profit after financial items

Note 01/01/2021 01/01/2020 1 -31/12/2021 -31/12/2020

39

Adjustments for non-cash items etc. Taxes paid Cash flow from operating activities before changes in working capital

1,722,538

983,935

-1,236,528

-645,490

-1,587

-535

484,423

337,909

Cash flow from changes in working capital Change in inventories and work in progress

15,974

-14,158

Change in trade receivables

-20,431

6,877

Change in current receivables

-12,069

14,690

Change in short-term investments Change in trade payables

1,540

0

-3,210

27,793

Change in current liabilities

217,774

-51,187

Cash flow from operating activities

684,001

321,924

Investing activities Investments in intangible fixed assets Investments in tangible assets Sale of tangible assets Investments in financial assets Sale of financial assets Acquisitions of subsidiaries

40

Sales of subsidiaries Cash flow from investing activities

-111

0

-384,376

-169,319

14,313

17,846

-588,522

-402,838

31,918

983,481

-117,323

8,003

752,071

4,823

-292,030

441,996

-120,522

-38,129

730,682

-105,479

0

-8,557

Financing activities Change in long-term receivables Change in long-term liabilities Non-controlling change Dividend paid

-60,125

0

Cash flow from financing activities

550,035

-152,165

Cash flow for the year

942,006

611,755

833,812

222,056

1,775,818

833,812

Cash and cash equivalents, 1 January Cash and cash equivalents, 1 January Cash and cash equivalents, 31 December

78

41


Parent Company income statement SEK thousand

Note 01/01/2021 01/01/2020 1 -31/12/2021 -31/12/2020

Net sales

3,457

Other operating income

3,564

51

66

3,508

3,630

5, 6

-21,387

-30,272

7

-17,717

-19,809

Operating expenses Other external expenses Personnel costs Depreciation of tangible assets Operating result

-245

-224

-39,349

-50,305

42

-35,841

-46,675

Result from financial items Result from participations in group companies

8

606,464

-3,620

Result from other securities and receivables accounted for as fixed assets

10

1,000

369,012

Other interest income and similar profit/loss items

11

17,072

19,544

Interest expense and similar profit/loss items

12

-3,543

-1,219

620,993

383,717

585,152

337,042

Profit after financial items Appropriations

43

Pre-tax profit Tax on profit for the year Net profit for the year

13

37,426

-96,089

622,578

240,953

-4,918

0

617,660

240,953

79


Parent Company balance sheet SEK thousand

Note 1

31/12/2021

31/12/2020

ASSETS Fixed assets Tangible assets Equipment, tools, fixtures and fittings

19

399

644

399

644

44, 45

1,972,912

1,959,102

46

43,549

75,349

Financial assets Participations in group companies Receivables from group companies Shares in associated companies and jointly-controlled companies

21, 22, 23

286,501

286,501

Other securities held as fixed assets

25, 26

4,202

4,202

Deferred tax assets

27, 28

0

4,918

Other long-term receivables

29

Total fixed assets

813

371

2,307,977

2,330,443

2,308,376

2,331,087

457,062

1,065,068

1,942

1,439

Current assets Current receivables Receivables from group companies Other receivables Prepaid expenses and accrued income

Cash and bank balances

80

30

31

431

2,557

459,435

1,069,064

1,678,808

590,907

Total current assets

2,138,243

1,659,971

TOTAL ASSETS

4,446,619

3,991,058


SEK thousand

Note 1

31/12/2021

31/12/2020

EQUITY AND LIABILITIES Equity

32, 47

Restricted equity Share capital Revaluation reserve

33

500,000

500,000

125,019

125,019

625,019

625,019

3,181,078

3,000,251

Non-restricted equity Profit/loss brought forward Net profit for the year

617,660

240,953

3,798,738

3,241,204

4,423,757

3,866,223

Other provisions for pensions and similar commitments

813

371

Provisions for deferred tax

197

90

1,010

461

3,164

5,081

13,863

107,101

60

131

1,767

1,211

Total equity Provisions

35

Total provisions Current liabilities Trade payables Liabilities to group companies Current tax liabilities Other liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES

38

2,998

10,850

21,852

124,374

4,446,619

3,991,058

81


Parent Company statement of cash flows SEK thousand

Note 01/01/2021 01/01/2020 1 -31/12/2021 -31/12/2020

Operating activities Profit after financial items

39

585,152

337,042

-605,670

-372,063

-71

89

-20,589

-34,932

603,129

272,602

-1,917

2,843

Change in current liabilities

-100,534

-53,768

Cash flow from operating activities

480,089

186,745

0

36

Adjustments for non-cash items Taxes paid Cash flow from operating activities before change in working capital Cash flow from changes in working capital Change in current receivables Change in trade payables

Investing activities Sale of group companies Investments in financial assets

-16,360

-304,099

Sale of financial assets

615,514

1,460,082

Investments in tangible assets Cash flow from investing activities

0

-253

599,154

1,155,766

31,358

-17,441

0

-785,000

-60,126

0

Financing activities Change in long-term receivables Shareholder contributions paid Dividend paid Group contributions Cash flow from financing activities Cash flow for the year

37,426

-96,089

8,658

-898,530

1,087,901

443,981

Cash and cash equivalents, 1 January Cash and cash equivalents, 1 January Cash and cash equivalents, 31 December

82

41

590,907

146,926

1,678,808

590,907


Notes SEK thousand

Note 1 Accounting and measurement principles General information The annual report and consolidated financial statements are prepared in accordance with the Swedish Annual Accounts Act and BFNAR 2012:1 Annual reports and consolidated financial statements and BFNAR 2020:1 Certain accounting issues due to the coronavirus. The Parent Company and the Group apply the same accounting principles unless otherwise stated below.

Translation of foreign currency

value of the expected net assets according to the acquisition analysis, the difference is reported as goodwill or buildings and land. Associated companies are companies in which the Company has a significant but non-controlling influence. Influence is usually considered to be significant when the Company owns at least 20% but no more than 50% of the votes in another company. Change in composition of the Group The following companies have been added to the Group through acquisitions:

Receivables and liabilities in foreign currencies have been valued at the closing day rate. Exchange rate gains and losses on operating receivables and operating liabilities are reported in operating profit, while exchange gains and losses on financial receivables and liabilities are reported as financial items.

Backahill Båstad AB acquired Backahill Jungfrun 1 AB and Backahill Torekov AB.

Revenue recognition

Backastad AB acquired Backastad Kavalleriet AB. Brf Graningeutsikten was formed.

Revenues have been admitted to the fair value of the consideration received or to be received and are recognised to the extent that it is likely that the financial benefit will be allotted to the Company and the revenues can be reliably calculated. Rental income is recognised in the period of the lease. In the case of the sale of goods, income is normally reported as income once the significant benefits and risks associated with ownership of the goods have been transferred from the Company to the buyer. Remuneration in the form of interest or dividends is reported as income when it is likely that the Company will receive the financial benefits associated with the transaction and when the income can be calculated reliably.

Consolidated financial statements

Backahill Fastigheter AB acquired Backahill Loglängan AB. During the year, Backahill AB acquired the remaining shares in PMSA Aktiesparklubb AB.

Backahill Utveckling AB acquired 51% of the shares in BLLB Fastigheter AB. Backahill Utveckling acquired all the shares in GroPro Solution AB, and subsequently divested 10%. GRAM GROUP AB acquired 100% of the shares in Pepe’s Bodega AB, with 33.3% coming from Backahill Bjäre AB and the remaining 66.6% from external parties. GRAM GROUP AB then sold Pepe’s Bodega AB to Huset vid Stranden AB. The following companies were sold: Backahill Båstad AB sold Backahill Hjorten AB and Norrviken Utveckling AB. Backastad AB sold all its shares in Backastad Årsta AB.

Accounting principles The consolidated financial statements cover the companies in which the Parent Company directly or indirectly holds more than half the voting rights associated with all the shares, or otherwise has a controlling interest as defined in the Swedish Annual Accounts Act 1:4. The subsidiaries’ results are included in the Group’s results from the date of acquisition until the date of sale.

S&E Sport & Evenemang Holding AB sold all its shares in S&E Stockholm Horse Week AB.

Consolidation method The consolidated financial statements were prepared according to the acquisition method. This means that the identifiable assets and liabilities of acquired companies are reported at market value according to established acquisition analysis. If the acquisition value of the business exceeds the estimated market

Backahill Invest AB, Båstad Financing AB, INIS Sweden AB and Norrviken Event AB merged with Backahill Förvaltning AB.

Backahill AB sold all its shares in Backahill Lindvallen AB. Backahill Utveckling AB sold all its shares in AB Cernelle. The following companies merged: Backahill Lärkan AB and Backahill Påfågeln AB merged with Backahill Cityfastigheter AB.

Backahill Elestorp AB, Båstad Konst- och Kulturfastigheter AB, LB Parkering AB, Lilla Båstad AB, and Norrviken Park AB merged with Norrviken Utveckling AB during the year. Norrviken Utveckling AB was then sold.

83


Subsidiaries In addition to the Parent Company, the consolidated financial statements comprise all companies in which the Parent Company has, directly or indirectly, more than 50% of the vote or otherwise holds the controlling influence and thus has the right to design the company’s financial and operational strategies in order to obtain economic benefits. A subsidiary’s income and costs are included in the consolidated financial statements from the date of acquisition until the date when the Parent Company ceases to have a controlling influence over the subsidiary. Non-controlling interest is the part of the subsidiary’s net income and net assets in the consolidated financial statements attributable to equity instruments that are not owned by the Parent Company, either directly or indirectly through the subsidiaries. Non-controlling interests are reported in the consolidated balance sheet as a special item within the Group’s equity. The report is based on the Group as a single economic unit according to the economic unit approach. All of the assets that the Group has controlling influence over are included in the consolidated balance sheet, including those that are partly-owned by other owners. Non-controlling interest’s share of profits after tax are recognised separately as non-controlling interests. Acquisitions and divestments of non-controlling interests are reported under equity.

Accounting principles for individual balance sheet items Intangible assets

Recognition of associated companies In the consolidated financial statements holdings in associated companies are recognised according to the equity method. This means that a purchase price allocation is prepared and any valuation surplus or deficit is identified. During the period that the interest is held the consolidated value of the interest is affected by amortisation of the valuation surplus or reversals of the valuation deficit. The value of the interest is also affected by the share of the associated company’s profits during the period for which the interest is held, adjusted for intra-group profits and other group adjustments. Dividends received reduce the consolidated value. Shares in the associated company’s profit after tax are reported on a separate line and affect the Group’s operating profit.

Tangible assets

Intra-group transactions Intra-group receivables and liabilities, transactions between group companies and unrealised gains are eliminated in full. Unrealised losses are also eliminated unless the transaction corresponds to an impairment loss. Changes in intra-group profit in the financial year are eliminated in the consolidated income statement.

Component classification Tangible fixed assets have been divided into components where the components are significant and where the components have substantially different useful lives. When a component of a fixed asset is replaced, any remaining portion of the old component is scrapped and the new component’s cost is capitalised. Costs for ongoing repairs and maintenance are recognised as expenses. The Group reports major tenant fit-outs according to the expanded definition of repairs. The acquisition value of tenant fit-outs is distributed and expensed over 3–15 years. Values that have not been expensed are reported under Land and buildings in the balance sheet, and amounts expensed during the year are reported as depreciation in the income statement.

Goodwill Goodwill is the difference that arises when the cost of the acquired entity is greater than the value of the net assets of the acquired entity. At the time of acquisition, any goodwill arising is recognised as an asset in the balance sheet. Negative goodwill is the difference that arises when the cost of the acquired entity is less than the value of the net assets of the acquired entity. At the time of acquisition, any negative goodwill arising is recognised as a liability in the balance sheet.

84

The Company reports internally generated intangible fixed assets according to the Capitalisation model. This means that all expenses relating to the production of an internally acquired intangible fixed asset are capitalised and amortised over the estimated useful life of the asset, provided that the criteria in BFNAR 2012:1 are met.

Fixed assets Tangible and intangible assets are recognised at cost less accumulated depreciation according to plan and any impairment. Tangible assets have been divided into significant components where the components have substantially different useful lives. Depreciation is on a straight-line basis over the expected useful life taking into account any significant residual value. The following depreciation periods are applied: Intangible assets Capitalised expenditure for development work Goodwill Right of tenancy

5 years 5–10 years 20 years

The amortisation period for goodwill is calculated from the period when the item is expected to generate economic benefits.

Buildings Tenant fit-outs Land improvements Equipment, tools, fixtures and fittings

5–200 years 3–15 years 15–20 years 3–100 years

Investment properties Investment properties are held to generate rental income and/or capital appreciation. The term investment property includes buildings, land, and land improvements. Investment properties are reported in the balance sheet to amounts corresponding to the cost of the acquisition or construction of the property (acquisition value), taking into account depreciation, write-downs and revaluations after acquisition.

Borrowing costs The borrowing costs that arise when the Company borrows capital are written off in the income statement in the period in which they were incurred.


Financial instruments

Lease agreements

Financial instruments are measured based on acquisition value. The instruments are recognised in the balance sheet when the Company becomes party to the instrument’s contractual terms. Financial assets are removed from the balance sheet when the right to receive cash flows from the instrument has expired or been transferred and the Company has transferred essentially all risks and benefits associated with the ownership. Financial liabilities are removed from the balance sheet when the obligations have been settled or otherwise discontinued.

When the economic benefits and risks associated with the leased item essentially remain with the lessee the lease agreements are classified as operating leases. The assets which the Company is the lessor of are reported as non-current assets. Leasing fees are determined annually and are reported on a straight-line basis over the term of the lease. The Company reports all leases, both financial and operational, as operating leases. Operating leases are reported on a straight-line basis over the term of the lease.

Shares in subsidiaries Shares in subsidiaries are reported at cost less any impairment losses. The cost includes the purchase price paid for the shares and acquisition costs. Any capital injections are added to the acquisition cost when incurred.

Inventories

Other securities held as fixed assets Investments in securities acquired for the purpose of being held in the long-term have been reported at their acquisition cost. An assessment of any impairment need is made at every balance sheet date.

The inventory is measured according to the principle of lowest value and the First In, First Out (FIFO) method. This means that the inventory is recognised either at cost according to the FIFO method or at fair value, whichever is the lower. Raw materials, purchased semi-finished and finished products and goods for resale are measured at cost. Selfconstructed semi-finished and finished products are measured at production cost plus a reasonable share of indirect costs. An individual obsolescence deduction has been made on the whole inventory. In no case is the value above fair value.

Short-term investments Securities acquired with the intention of being held short term are initially recognised at cost and in subsequent valuations at the lower of historical cost or market value in accordance with the lower of cost or market method.

Income tax

Trade receivables/Current receivables Trade receivables and current receivables such as current assets are recognised up to the amount that is expected to be paid after deductions for individually assessed doubtful trade receivables.

Current tax Current tax refers to income tax for the current financial year as well as the portion of income tax for previous financial years that has not yet been recognised. The current tax liability is calculated using the tax rates that prevail on the balance sheet date.

Borrowings and trade payables Borrowings and trade payables are initially recognised at cost less any transaction costs. Offsetting financial assets and financial liabilities A financial asset and a financial liability are offset and the net amount recognised in the balance sheet only when an entity has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to dispose of the asset and settle the liability simultaneously. Impairment testing of financial assets At each balance sheet date, the Company assesses whether there are indications of any impairment need for any of the financial assets. Impairment is recognised if the decline in value is deemed to be permanent and is tested individually. Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances as well as short-term investments with an original term of up to three months.

Total tax consists of current tax and deferred tax. Tax is recognised in the income statement, except for when the underlying transaction is recognised directly in equity, in which case the related tax effect is recognised in equity.

Deferred tax Deferred tax is income tax for future financial years as a result of past events. It is reported according to the balance sheet method. According to this method, deferred tax liabilities and deferred tax assets are reported on temporary differences arising between the book value and tax value of assets and liabilities as well as for other tax deductions or deficits. Deferred tax assets are netted against deferred tax liabilities only if they can be paid with a net amount. Deferred tax is calculated on the basis of the current tax rate on the balance sheet date. The effects of changes in current tax rates are recognised in the period when the change is statutory. Deferred tax assets are reported as financial fixed assets and deferred tax liabilities are reported as provisions. Deferred tax assets relating to loss carry forwards or other future tax deductions are recognised to the extent that it is likely that the deduction can be offset against future taxable profits. Due to the relationship between accounting and taxation, deferred tax liabilities attributable to untaxed reserves are not reported separately.

85


Provisions Provisions have been made for all commitments to third parties attributable to the financial year or previous financial years which as at the balance sheet date are certain or likely to occur but uncertain as regards the amount or the date on which they will be realised.

Remuneration to employees Remuneration to employees relates to all forms of remuneration that the Company pays to employees. Short-term remuneration consists of wages, paid holiday leave, paid absences, bonuses and compensation after termination of employment (pension). Shortterm remuneration is reported as cost and liability when there is a legal or informal obligation to pay compensation as a result of events that have occurred, and a reliable estimate of the amount can be made.

Remuneration to employees after termination of employment The Company offers both defined contribution and defined benefit pension plans. The reporting of defined benefit pension plans is in accordance with the simplification rules. The Company has defined-benefit pension plans where a pension premium is paid, and it reports these plans as defined contribution plans in accordance with the simplification rule in BFNAR 2012:1 (K3). The Company has defined benefit plans financed through Alecta, which are reported as defined contribution plans, as there is insufficient information to report the plans as defined benefit plans. The Company has pension obligations which are solely dependent on the value of the capital insurances of the Company and the Group. Capital insurances are reported at cost as financial fixed assets. The pension obligation is reported as a provision at the same value as the carrying amount of the capital insurance.

Government grants Where no future service is required to obtain the grant, government grants are recognised as revenue when the conditions for obtaining the grant are met. Government grants are recognised at the fair value of what has been or will be received.

Group contributions Paid and received group contributions are accounted for as appropriations.

Statement of cash flows The statement of cash flows is prepared using the indirect method. Reported cash flow includes transactions involving receipts or disbursements only. Besides cash, the Company classes available balances at banks and other credit institutions and short-term cash investments that are listed on a marketplace and have a maturity

86

of less than three months from the acquisition date as cash equivalents. Changes in blocked funds are reported under investing activities.

Key indicator definitions Net sales The business’s main revenue, invoiced costs, incidental revenue and revenue corrections. Profit after financial items Profit after financial income and expenses. Total assets The Company’s collective assets. Equity/assets ratio, % Adjusted equity (equity and untaxed reserves less deferred tax) as a percentage of total assets. Number of employees Average number of employees during the financial year.

Estimations and assessments The preparation of book closing and application of accounting policies are often based on the management’s judgements, estimates and assumptions which are deemed reasonable at the time that they are assessed. The estimations and assessments are based on historical experience and a number of other factors, which are considered to be reasonable under the current circumstances. The results of these are used to determine the reported values of assets and liabilities, that are not otherwise readily apparent from other sources. The actual outcome may differ from these estimates. Estimations and assessments are reviewed regularly. According to the management, the material judgements regarding the accounting policies applied and the sources of uncertainty in estimates are primarily related to the estimated useful life of the different items under Land and buildings. The tax loss in the Parent Company amounts to SEK 534,224 thousand. This corresponds to a deferred tax asset of SEK 110,050 thousand, but in order to remain prudent no deferred tax asset is recognised. The tax loss in the Group amounts to SEK 564,439 thousand. This corresponds to a deferred tax asset of SEK 116,274 thousand. Of this, only SEK 461 thousand is recognised, which is expected to be utilised against future profits.


Note 2 Net sales breakdown

Note 4 Government grants 2021

2020

GROUP

GROUP

Net sales by line of business

State aid received, rent discounts

Property management

187,743

199,842

Sales of goods

68,075

70,150

Consulting

12,745

5,568

215

0

Income from securities trading Hotel operations

367,554

49,310

636,332

324,870

Sales of goods Consulting Securities trading Impairment of goodwill/Reversal of negative goodwill Shared costs Result from participations in group companies Result from participations in associated companies Hotel operations

State aid received, restructuring aid State aid received, short-term aid

2020

1,164

1,672

100

739

2,677

6,773

2,049

5,633

5,990

14,817

Note 5 Leasing agreements, lessee

Operating profit by line of business Property management

State aid received, personnel

2021

-22,498

2,897

7,950

5,837

-3,848

-2,606

-10

-14

0

-45,949

-35,840

-46,675

685,085

-1,250

793,483

543,458

16,533

-9,212

1,440,855

446,486

GROUP The year’s leasing costs relating to lease contracts amounts to SEK 71,998 thousand (SEK 18,648 thousand). Future leasing payments, under non-cancellable leases, fall due as follows: Within one year More than one year but less than five years More than five years

2021

2020

-6,438

-11,549

-20,016

-34,235

-1,500

-6,115

-27,954 -51,899 Refers to rental contracts for premises, leasing of cars and office machines, as well as equipment and bills of exchange for the hotel industry. The amounts are stated in nominal values. PARENT COMPANY

Note 3 Leasing agreements, lessor GROUP

The year’s leasing costs relating to leasing contracts amount to SEK 2,584 thousand (SEK 2,526 thousand).

The year’s leasing rental income relating to lease contracts amounts to SEK 154,616 thousand (SEK 141,290 thousand).

Future leasing payments, under non-cancellable leases, fall due as follows:

The year’s variable income relating to leasing contracts amounts to SEK 13,309 thousand (SEK 15,298 thousand). Claims relating to future leasing payments, under noncancellable leases, fall due as follows: 2021

2020

Within one year

104,565

89,817

More than one year but less than five years

261,243

177,041

More than five years

243,302

106,371

609,110

373,229

2021

2020

Within one year

-2,003

-2,451

More than one year but less than five years

-2,712

-3,759

-4,715 -6,210 Refers to rental contracts for premises as well as the leasing of cars and office machines. The amounts are stated in nominal values.

Future leasing fees, for non-cancellable leasing agreements, refers to leases for premises with an index clause. The amounts are stated in nominal values.

87


Note 6 Remuneration to auditors

Note 7 cont.

The audit assignment refers to auditing of the annual report and bookkeeping and the administration of the Company by the Board of directors and CEO, as well as other tasks falling to the Company’s auditor. It also covers consulting or other assistance given as a result of observations made during such an audit or the performance of such other tasks.

Gender distribution among senior executives

2021

2020

-5,100

-5,183

Tax consulting

-998

-1,014

Other services

-4,141

-4,208

-10,239

-10,405

Proportion of women on the Board of directors Proportion of men on the Board of directors Proportion of women among other senior executives Proportion of men among other senior executives

5%

6%

95%

94%

5%

6%

95%

94%

2021

2020

3

3

GROUP Ernst & Young AB Audit assignment

PARENT COMPANY Average number of employees Women Men

4

4

7

7

Board of directors and CEO

-5,262

-6,012

Other employees

-5,399

-5,765

-10,661

-11,777

PARENT COMPANY Ernst & Young AB Audit assignment

-3,611

-3,366

Tax consulting

-706

-658

Other services

-2,932

-2,733

-7,249 -6,757 Part of the audit is invoiced to the Parent Company and covers most Group companies.

Wages, salaries and other remuneration

Social security costs

Note 7 Employees and personnel costs 2021

2020

Pension expenses for the Board of directors and CEO

-1,395

-1,305

Pension expenses for other employees

-1,034

-1,278

Other statutory and contractual social security costs

-3,932

-4,237

-6,361

-6,820

-17,022

-18,597

20%

20%

80%

80%

22%

22%

78%

78%

GROUP Average number of employees Women Men

197

79

166

70

363

149

Wages, salaries and other remuneration Board of directors and CEO Other employees

-12,631

-10,123

-140,882

-64,090

-153,513

-74,213

Social security costs -3,417

-2,157

Pension expenses for other employees

-11,079

-6,758

Other statutory and contractual social security costs

-48,016

-22,249

-62,512

-31,164

Pension expenses for the Board of directors and CEO

Total wages, salaries, remuneration, social security costs and pension expenses

88

-216,025 -105,377

Total wages, salaries, remuneration, social security costs and pension expenses Gender distribution among senior executives Proportion of women on the Board of directors Proportion of men on the Board of directors Proportion of women among other senior executives Proportion of men among other senior executives Severance pay agreements

The CEO and the Company have a mutual notice period of six months. In case of termination by the Company, the CEO is entitled to severance pay equivalent to twelve months of salary.


Note 8 Result from participations in group companies 2021

2020

Note 11 Other interest income and similar profit/loss items 2021

GROUP Profit or loss on disposals Impairment losses

685,085

1,500

0

-2,750

Dividends received

49

46

-1,250

Other interest income

9,568

6,871

Profit on sales

1,014

0

10,631

6,917

17,064

19,540

8

4

17,072

19,544

685,085 PARENT COMPANY Profit or loss on disposals Impairment losses

2020

GROUP

606,464

0

0

-3,620

PARENT COMPANY

606,464

-3,620

Interest income from group companies Other interest income

Note 9 Profit from shares in associated companies and jointly-controlled companies 2021

2020

116,721

75,027

7,041

40,671

Impairment losses

-38,000

-28,145

Profit share

707,721

455,905

793,483

543,458

Note 12 Interest expense and similar profit/loss items

GROUP Dividends received Profit or loss on disposals

2021

2020

-22,486

-25,966

-785

-615

-23,271

-26,581

GROUP Other interest expenses Other financial expenses

PARENT COMPANY Interest expenses to group companies

Note 10 Result from other securities and receivables accounted for as fixed assets 2021

2020

319,033

256,437

-6,307

441,898

-2,688

0

Other interest expenses

-126

-610

Other financial expenses

-729

-609

-3,543

-1,219

GROUP Dividends received Profit or loss on disposals Impairment losses Reversal of impairment losses Repayment capital insurance Repayment of previously impaired receivables Recognised loss Written off receivables

-52,426 -142,606 31,243

1,090

336

294

11,020

0

-7,485

0

-1,091

0

294,323

557,113

0

394,562

PARENT COMPANY Profit or loss on disposals Impairment losses Reversal of impairment losses

0

-25,550

1,000

0

1,000

369,012

89


Note 13 Current and deferred tax 2021

2020

-2,650

-645

-1

-434

-3,174

-28,196

287

0

-5,538

-29,275

2021

2020

GROUP Tax on profit for the year Current tax Adjustment from previous years Changes to deferred tax on temporary differences Tax deduction for investments in equipment

Total reported tax Reconciliation of effective tax Percentage Reported pre-tax profit Tax according to the applicable tax rate

Amount

Percentage

1,722,538 20.6

-354,843

Amount 983,935

21.4

-210,562

Non-deductible expenses

-28,238

-51,785

Non-taxable income

235,322

131,430

-1

-434

-4,918

1,857

1,230

18

Adjustment for taxes for the previous year Tax loss carry-forwards whose tax base is no longer recognised as an asset Other Change tax deficit Share of profit Deferred tax valued at 20.6% opening value Deferred tax valued at 20.6% change for the year Elimination of untaxed reserves valued at 20.6% Other, net interest income Tax deduction for investments in equipment Reported effective tax

-259

2,556

145,473

97,561

104

0

0

-219

0

-81

305

384

287 0.3

-5,538

0 3.0

-29,275

2021

2020

0

0

PARENT COMPANY Tax on profit for the year Current tax Changes to deferred tax on temporary differences

-4,918

0

Total reported tax

-4,918

0

Reconciliation of effective tax 2021 Percentage Reported pre-tax profit Tax according to the applicable tax rate

20.6

Non-taxable income Tax loss carry-forwards whose tax base is no longer recognised as an asset Other, net interest income Change tax deficit

90

2020 Percentage

622,578

Non-deductible expenses

Reported effective tax

Amount

-128,251

240,953 21.4

-51,564

-398

-8,224

125,962

52,639

-4,918

0

2,677

4,023

10 0.8

Amount

-4,918

3,125 0.0

0


Note 14 Capitalised expenditure for development work and similar

Note 16 Goodwill

31/12/2021

31/12/2020

11,484

10,886

112

604

0

-6

-11,596

0

0

11,484

GROUP Opening cost Purchases Disposals/retirements Divested acquisition cost Closing accumulated cost

Opening amortisation Amortisation for the year Divested depreciation Closing accumulated depreciation Carrying amount

31/12/2021

31/12/2020

166,596

18,172

1,950

45,949

-61

0

GROUP

-7,656

-6,853

-849

-803

8,505

0

0

-7,656

Opening cost Purchases Reclassification Acquired cost

0

110,203

Divested acquisition cost

-10,445

-7,728

Closing accumulated cost

158,040

166,596

-30,108

-1,232

Opening amortisation Reclassification

61

0

0

-28,091

-11,046

-2,056

0

1,271

Closing accumulated depreciation

-41,093

-30,108

Opening impairment losses

-56,393

-10,627

Depreciation acquired Amortisation for the year

0

3,828

Note 15 Right of tenancy and similar rights

Divested depreciation

Impairment losses for the year

31/12/2021

31/12/2020

Opening cost

0

0

Disposals/retirements

0

-3,000

Acquired cost

0

3,000

Closing accumulated cost

0

0

Opening amortisation

0

0

Disposals/retirements

0

3,000

Amortisation for the year

0

-700

Depreciation acquired

0

-2,300

Closing accumulated depreciation

0

0

Closing carrying amount

0

0

GROUP

0

-45,949

Divested impairments

10,445

183

Closing accumulated impairment losses

-45,948

-56,393

70,999

80,095

Carrying amount

91


Note 17 Land and buildings

Note 18 Tenant fit-outs 31/12/2021

31/12/2020

GROUP Opening cost

31/12/2020

2,406,280

2,371,469

Opening residual value

5,900

10,348

82,673

3,874

Depreciation for the year

-1,876

-4,448

-19,801

-25,766

Closing carrying amount

4,024

5,900

Reclassifications

278,787

51,577

Acquired cost

116,446

625

Purchases Disposals/retirements

Divested acquisition cost

-405,036

4,501

Closing accumulated cost

2,459,349

2,406,280

Opening amortisation Disposals/retirements

-340,380

-299,592

1,407

869

Divested depreciation/ Reclassifications Amortisation for the year

55,377

0

-43,312

-41,657

Depreciation acquired

-31,650

0

-358,558

-340,380

Closing accumulated depreciation Opening revaluations

0

1,085

Disposals/retirements

0

-1,085

Closing accumulated revaluations

0

0

-58,991

-31,334

0

11,893

Opening impairment losses Disposals/retirements

Note 19 Equipment, tools, fixtures and fittings

Opening cost Purchases Disposals/retirements Reclassifications Acquired cost

Carrying amount Information about investment properties Carrying amount including tenant adjustments

-58,991

2,043,182

2,006,909

101,503

3,218

51,857

802

-15,974

-10,803

-6,938

-77,779

-128,960

-171,649

88,605

109,665

2,493

2,240

Amortisation for the year

Carrying amount

PARENT COMPANY Purchases

0

253

Closing accumulated cost

2,493

2,493

Opening amortisation

-1,849

-1,625

-245

-224

-2,094

-1,849

399

644

2,012,809

3,315,031

3,245,025

Tax assessment value, buildings

847,639

798,493

Amortisation for the year

Tax assessment value, land

336,719

287,369

1,184,358

1,085,862

Closing accumulated depreciation

Valuation took place externally by an independent assessor. The value was assessed using both a local price method and a present value method. The present value method, which is also known as the yield method, can be seen as the collective name for the methods where the market’s expectations of the value of the object is analysed through a simulation of the estimated future revenue and costs.

8,045

-87,087

Opening cost

Property holdings also include properties with no tax assessment value.

4,232

13,744

Disposals/retirements Divested depreciation/ Reclassifications

2,047,206

Fair value

-4,822

6,365

-171,649

Opening amortisation

Closing accumulated depreciation

-57,609

-14,426

-2,378

194

Closing accumulated impairment losses

4,311

281,314

0

0

15,487

217,565

Reclassifications

-40,254

178,468

Closing accumulated cost

510

0

281,314

-79,220

0

1,382

31/12/2020

Divested acquisition cost

Reversed impairment losses

Divested impairments

31/12/2021 GROUP

Depreciation acquired

Impairment losses for the year

92

31/12/2021 GROUP

Closing carrying amount


Note 20 Construction in progress and advance payments for tangible assets 31/12/2021

31/12/2020

Opening cost

278,423

208,082

Purchases

363,785

165,771

-262,192

-56,004

0

161

-416

-34,951

GROUP

Reclassifications Acquired cost Divested acquisition cost Expensed Impairment

-2,011

-4,636

-47,255

0

330,334

278,423

Note 21 Shares in associated companies and jointly-controlled companies 31/12/2021

31/12/2020

GROUP Opening cost

3,183,662

2,705,076

Purchases/acquired cost

70,560

3,826

Disposals/retirements

-2,053

0

8,787

-2,889

707,721

455,905

41,500

21,744

4,010,177

3,183,662

-172,691

-144,546

Reclassifications Profit share Shareholder contributions/ withdrawals/reversals non-controlling Closing accumulated cost

Opening impairment losses Disposals/retirements Reclassifications Impairment losses for the year

25

0

-8,342

0

-38,000

-28,145

Closing accumulated impairment losses

-219,008

-172,691

Carrying amount

3,791,169

3,010,971

Opening cost

286,501

286,501

Closing accumulated cost

286,501

286,501

Carrying amount

286,501

286,501

PARENT COMPANY

93


Note 22 Specification of participations in associated companies and jointly-controlled companies GROUP Name Brinova Fastigheter AB (publ)*

Share of equity

Voting rights Number of shares

Book value

23.64%

39.83%

23,495,513

560,528

Catena AB (publ)*

27.2%

27.2%

11,219,599

3,033,695

Sälen Centrum HB

50%

50%

1

9,682

Lima Timmerhus AB

50%

50%

500

75

24%

24%

24,000

0

46.2%

46.2%

462

0

Foodhills AB Foodhills Fastighet AB* Ankarhill Fastighets AB

50%

50%

250

18

GroPro AB

50%

50%

500

19,112

47.9%

47.9%

434,000

46,648

50%

50%

25,000

102

100%

100%

50,000

0

50%

50%

25,000

126

Arenabolaget i Ängelholm AB Backerhof Holding AB - Backerhof 2 AB Backerhof Holding 2 AB - Backerhof 6 AB

100%

100%

50,000

0

MMBA Projekt AB

50%

50%

250

42

MMBA 2 Projekt AB

50%

50%

250

32

Bjärerondellen AB - Båstad Företagsby AB

21%

21%

210

1,959

100%

100%

1,000

0

- Båstad Barret 12 AB

100%

100%

500

0

- Fastighets AB Båstad Lyckebacken 2

100%

100%

50,000

0

- Båstad Företagslokaler AB

100%

100%

500

0

- Båstad Kalkugnen 16 AB

100%

100%

500

0

- Båstad Kalkugnen 4 AB

100%

100%

250

0

Båstadtennis & Hotell AB

34.17%

34.17%

205,357

88,094

- Tennis Lodge i Båstad AB

100%

100%

100,000

0

- AB Himmeslövs havsbad

100%

100%

1,000

0

- Tennis Lodge Hus 1 AB

100%

100%

50,000

0

- Tennis Lodge Hus 2 AB

100%

100%

50,000

0

- Bengtsson & Nobel & Olofsson Fastighets AB

100%

100%

1,000

0

- Båstad Krog & Spa AB

100%

100%

500

0

- BTH Licens AB

100%

100%

50,000

0

- Arena Båstad AB

100%

100%

50,000

0

Jopa Fastighets AB

50%

50%

500

2,151

HB Midgården 2

50%

50%

1

4,217

MMB i Båstad AB

25%

25%

250

24,432

Summer On Event AB

30%

30%

1,800

256 3,791,169

PARENT COMPANY Name Brinova Fastigheter AB (publ)*

Share of equity 22.15%

Voting rights Number of shares 39.29%

21,570,513

Book value 286,501 286,501

94


Note 22 cont.

Company reg. no.:

Domicile

Equity

Result

Brinova Fastigheter AB (publ)*

556840-3918

Helsingborg

2,859,600

399,800

Catena AB (publ)*

556294-1715

Helsingborg

11,255,000

2,703,300

Sälen Centrum HB

916581-9906

Malung-Sälen

19,362

2,791

Lima Timmerhus AB

556730-8449

Malung-Sälen

803

-43

Foodhills AB

559097-6501

Bjuv

16,717

-32,916

Foodhills Fastighet AB*

559122-6617

Bjuv

3,400

-16,300

Ankarhill Fastighets AB

559209-2497

Ängelholm

36

-14

GroPro AB

559268-6041

Bjuv

38,223

-1,777

Arenabolaget i Ängelholm AB

556667-9022

Ängelholm

97,248

1,757

Backerhof Holding AB

559010-5408

Kävlinge

18,442

-293

- Backerhof 2 AB

559023-4455

Kävlinge

74

-18,272

Backerhof Holding 2 AB

559033-5450

Kävlinge

209

5

- Backerhof 6 AB

559033-5443

Kävlinge

56

-81

MMBA Projekt AB

559073-6483

Båstad

84

-24

MMBA 2 Projekt AB

559198-1179

Båstad

65

-31

Bjärerondellen AB

556594-3080

Båstad

4,913

550

- Båstad Företagsby AB

556725-4189

Båstad

7,139

1

- Båstad Barret 12 AB

559018-9048

Båstad

2,633

8

- Fastighets AB Båstad Lyckebacken 2

559094-9201

Båstad

625

1

- Båstad Företagslokaler AB

556823-5187

Båstad

529

44

- Båstad Kalkugnen 16 AB

559192-8428

Ängelholm

108

58

- Båstad Kalkugnen 4 AB

559244-6164

Ängelholm

87

23

Båstadtennis & Hotell AB

556594-3288

Båstad

284,450

5,658

- Tennis Lodge i Båstad AB

556733-0997

Båstad

878

764

- AB Himmeslövs havsbad

556029-8274

Båstad

27,353

304

- Tennis Lodge Hus 1 AB

556939-9719

Ängelholm

3,243

438

- Tennis Lodge Hus 2 AB

556939-9750

Ängelholm

3,493

317

- Bengtsson & Nobel & Olofsson Fastighets AB

556552-3379

Båstad

9,322

216

- Båstad Krog & Spa AB

559133-9873

Båstad

49

0

- BTH Licens AB

559094-9029

Ängelholm

187

137

- Arena Båstad AB

559094-9045

Ängelholm

82

9

Jopa Fastighets AB

556605-8268

Båstad

2,878

608

HB Midgården 2

969676-9430

Ängelholm

6,655

486

MMB i Båstad AB

556624-0510

Båstad

30,365

13,586

Summer On Event AB

556862-2376

Båstad

852

153

PARENT COMPANY Brinova Fastigheter AB (publ)*

Company reg. no.:

Domicile

Equity

Result

556840-3918

Helsingborg

2,859,600

399,800

*Equity and Profit/loss refers to the Group’s equity and profit/loss.

95


Note 23 Shares in associated companies and jointly-controlled companies

Note 25 Other long-term securities held as fixed assets

GROUP Name Catena AB (publ) Brinova Fastigheter AB (publ)

Book value

Market value

3,033,695

6,327,854

Opening cost

560,528

1,170,077

Purchases

3,594,223 7,497,931 The market value of the above shareholding on submission of the annual report is SEK 5,325,308 thousand. PARENT COMPANY Name Brinova Fastigheter AB (publ)

Book value

Market value

286,501

1,074,212

286,501 1,074,212 The market value of the above shareholding on submission of the annual report is SEK 651,429 thousand.

Disposals/retirements Divested acquisition cost

Opening cost

208,866

198,973

Future receivables

152,455

95,731

-4,738

-55,838

GROUP

Outgoing receivables Reclassifications

-46,342

-30,000

Closing accumulated cost

310,241

208,866

Reclassifications Impairment losses for the year Closing accumulated impairment losses Carrying amount

96

-190,910

-90,000

8,342

0

-32,000

-100,910

-214,568

-190,910

95,673

17,956

437,058

-29,364

-534,776

-599,062

0 9,812

0

-1,261

3,815,043

3,899,814

Closing accumulated cost

Opening impairment losses

-95,641

-64,645

Disposals/retirements

14,976

0

Reversed impairment losses

10,000

0

0

1,425

Reclassifications

0

-32,421

-70,665

-95,641

3,744,378

3,804,173

29,202

783,817

PARENT COMPANY Opening cost Purchases

0

304,099

Disposals/retirements

0

-1,058,714

29,202

29,202

Closing accumulated cost

Opening impairment losses Impairment losses for the year

Opening impairment losses

3,988,981

543,655

0

Carrying amount

31/12/2020

3,899,814

Reclassifications

Closing accumulated impairment losses

31/12/2021

31/12/2020

Acquired cost

Impairment losses for the year

Note 24 Receivables from associated companies and jointly-controlled companies

31/12/2021 GROUP

Closing accumulated impairment losses Carrying amount

-25,000

0

0

-25,000

-25,000

-25,000

4,202

4,202


Note 26 Shares and participations

Note 29 Other long-term receivables

GROUP Book value

Market value

Fabege AB (publ)

1,931,165

7,896,389

GROUP

Wihlborgs Fastigheter AB (publ)

Name

1,016,076

3,455,820

Opening cost

Diös Fastigheter AB (publ)

560,813

1,765,065

Future receivables

Other holdings

236,324

236,324

3,744,378 13,353,598 The market value of the above shareholding on submission of the annual report is SEK 9,818,216 thousand. PARENT COMPANY Name

Book value

Market value

Other holdings

4,202

4,202

4,202 4,202 The market value of the above shareholding on submission of the annual report is SEK 4,202 thousand.

Outgoing receivables Reclassifications Acquired cost

31/12/2020

Opening cost

5,818

42,261

Future receivables

5,704

23

Outgoing receivables

-5,726

-35,939

Divested receivables

-4,926

-527

870

5,818

101,730

102,751

24,932

16,130

-51,388

-13,624

-1,569

-3,500

0

3 -30

Closing accumulated cost

73,270

101,730

Opening impairment losses

-38,191

-36,520

9,930

2,629

Reversed impairment losses

21,243

0

Reclassifications

-9,100

3,500

Amortisation, outgoing receivables

Closing accumulated impairment losses 31/12/2021

31/12/2020

-435

Divested acquisition cost

Impairment losses for the year

Note 27 Deferred tax assets

31/12/2021

Carrying amount

-257

-7,800

-16,375

-38,191

56,895

63,539

921

3,000

GROUP

PARENT COMPANY Opening cost Outgoing receivables

4,918

4,918

-4,918

0

0

4,918

PARENT COMPANY Opening cost Future receivables Outgoing receivables Reclassifications

750

0

1,113

921

Opening impairment losses

-550

-2,000

0

2,000

1,000

0

-750

0

Amortisation, outgoing receivables Reclassifications Impairment losses for the year

31/12/2021

31/12/2020

1,271 -3,350

Closing accumulated cost

Reversed impairment losses

Note 28 Deferred tax assets

442 -1,000

Closing accumulated impairment losses

0

-550

-300

-550

813

371

GROUP Specification of deferred tax assets Loss carry-forward Other Tax deduction for investments in equipment

Carrying amount 461

5,694

58

124

351

0

870

5,818

PARENT COMPANY Specification of deferred tax assets Loss carry-forward

0

4,918

0

4,918

97


Note 30 Prepaid expenses and accrued income

Note 32 Number of shares and quota value

31/12/2021

31/12/2020

Other accrued income

2,335

1,975

Number of class A shares

Accrued rental income

2,219

1,292

Number of class B shares

GROUP

Number of shares Quota value GROUP 50,000

1,000

450,000

1,000

500,000

Prepaid property expenses Accrued interest income

770

2,371

2,781

3,805

PARENT COMPANY

Other prepaid expenses

2,726

5,646

Number of class A shares

50,000

1,000

15,089

Number of class B shares

450,000

1,000

10,831

500,000

PARENT COMPANY Accrued interest income

0

2,052

Other prepaid expenses

431

505

431

2,557

Note 33 Revaluation reserve 31/12/2021

31/12/2020

Opening balance

127,661

127,661

Closing balance

127,661

127,661

GROUP

Note 31 Overdraft facilities 31/12/2021

31/12/2020

PARENT COMPANY

GROUP Overdraft facilities granted amount to

257,000

175,000

Utilised credit amounts to

28,390

0

Overdraft facilities granted amount to

175,000

175,000

Utilised credit amounts to

0

0

Opening balance

125,019

125,019

Closing balance

125,019

125,019

31/12/2021

31/12/2020

1,619,430

1,163,537

PARENT COMPANY

Note 34 Equity method reserve

GROUP Opening balance Share of profit Dividend Reclassifications Additional surplus value related to reclassifications Sale of associated companies

98

822,757

528,760

-116,721

-75,027

314

2,160

16,103

0

132

0

2,342,015

1,619,430


Note 35 Provisions

Note 36 Long-term liabilities 31/12/2021

31/12/2020

31/12/2021

GROUP

GROUP

Pensions and similar commitments

Due more than five years from the closing date

Opening balance

810

812

Provisions for the year

514

371

-256

-373

1,068

810

Reversed amount during the year

Deferred tax liabilities Opening balance

16,863

21,326

4,376

1,999

Reversed amount during the year

-1,176

-9,839

Divested provision

-1,199

0

The year’s revaluation due to changes in tax rates

0

3,361

-73

16

18,791

16,863

15,000

0

15,000

0

Specifications, other provisions Warranty provision

Deferred tax – payroll tax

31/12/2021

31/12/2020

Overdraft facilities on construction loans amount to

110,500

110,500

Utilised credit amounts to

110,402

29,695

GROUP

31/12/2021

31/12/2020

Prepaid rents

16,305

19,740

Accrued personnel costs

27,366

28,033

1,920

4,002

GROUP

15,000

0

Accrued interest expenses

15,000

0

Accrued property expenses

7,824

1,999

20,760

18,853

4,635

4,464

78,710

77,091

Accrued personnel costs

2,518

1,864

Other accrued expenses

462

8,800

0

169

Other accrued expenses

Specification of deferred tax liabilities Deferred tax liability in respect of temporary differences, buildings Deferred tax – untaxed reserves

27,000 27,000

Note 38 Accrued expenses and deferred income

Other provisions Provisions for the year

21,000 21,000

Note 37 Construction loans

Provisions for the year

Acquired provision

Liabilities to credit institutions

31/12/2020

Other prepaid income 18,532

15,340

0

1,236

259

287

18,791

16,863

PARENT COMPANY

PARENT COMPANY

Accrued interest expenses Other prepaid income

18

17

2,998

10,850

Pensions and similar commitments Opening balance Provisions for the year

371

0

442

371

813

371

90

0

107

90

197

90

197

90

197

90

Deferred tax liabilities Opening balance Provisions for the year

Specification of deferred tax liabilities Deferred tax – payroll tax

99


Note 39 Interest and dividends

Note 40 cont. 31/12/2021 31/12/2020

31/12/2021

31/12/2020

14,437

4,724

Dividends received

435,803

331,511

Interest paid

-25,353

-23,353

The value of acquired assets and liabilities was in accordance with the acquisition analysis

424,887

312,882

Intangible assets

Interest received

19,122

17,492

Interest paid

-3,712

-1,234

15,410

16,258

GROUP

GROUP Interest received

PARENT COMPANY

Note 40 Acquisition of subsidiaries GROUP During the year Backahill Jungfrun 1 AB was acquired on 01/06/2021, Backahill Torekov AB on 15/12/2021, Backahill Loglängan AB on 01/06/2021, and Backastad Kavalleriet AB on 28/04/2021. The companies are involved in the rental and management of properties. In addition, PMSA Aktiesparklubb AB was acquired on 30/04/2021. The company owns and manages securities. Pepe’s Bodega was acquired on 05/10/2021 and receives royalties for the name Pepe’s Bodega. BLLB Fastigheter AB was acquired on 29/07/2021. The company manages properties and conducts property transactions, and manages interests in development companies and projects. GroPro Solution was acquired as of 30/11/2021 and conducts the production and distribution of food products. In the previous year, CrHe Invest AB was acquired (06/03/2020). The company works with securities management. The company was merged with its Parent Company later in the year. Båstad Konst- och Kulturfastigheter AB was acquired on 06/03/2020. The company organises exhibitions, lectures, music and other cultural activities and manages properties. Chart Invest AB with its subsidiaries S&E Sport&Evenemang Holding AB (the business aims to invest in projects in the sports and entertainment industry) and S&E Stockholm Horse Week AB (the business consists of conducting annual equestrian events) was acquired on 29/04/2020. The Parent Company’s activities consist of owning and managing securities. GRAM Group AB with its subsidiaries Restaurang & Hotell Skansen i Båstad AB, Torekov Hotell Resort AB, Hotell Riviera Strand AB, Hamnplats 3 AB and Huset vid Stranden AB were acquired on 30/09/2020. The Group operates hotels and restaurants as well as conference and spa facilities. For further information, see Note 45.

100

Group goodwill Minority

0

82,813

1,950

30,272

-30

-12,500

Tangible assets

85,904

24,511

Surplus buildings and land

75,558

0

Financial assets

13,090

9,953

Surplus financial assets Inventories

16,103

14,263

0

5,999

0

0

Deferred tax Trade receivables

7

13,792

Other short-term liabilities

134

6,571

Cash and cash equivalents

8,469

53,123

0

-3,326

Deferred tax Long-term liabilities

-74,262

-73,243

-40

-20,263

Other current liabilities

-989

-85,067

Current tax liabilities

-102

-1,778

125,792

45,120

-8,469

-53,123

117,323

-8,003

Trade payables

Purchase consideration paid Cash and cash equivalents in acquired companies Impact on the Group’s cash and cash equivalents


Note 41 Cash and cash equivalents

Note 43 Appropriations

31/12/2021

31/12/2020

GROUP

PARENT COMPANY

Cash and cash equivalents

Paid Group contributions

Cash balances

3

2

Bank deposits

1,775,815

833,810

1,775,818

833,812

1,678,808

590,907

1,678,808

590,907

Group contributions received

2021

2020

-21,824

-102,930

59,250

6,841

37,426

-96,089

PARENT COMPANY Cash and cash equivalents Bank deposits

Note 44 Participations in group companies 31/12/2021

31/12/2020

2,498,622

1,707,358

PARENT COMPANY Opening cost Purchases

16,060

0

Note 42 Intra-group purchases and sales

Disposals/retirements

-9,050

-36

PARENT COMPANY

Shareholder contributions

6,800

791,300

Closing accumulated cost

2,512,432

2,498,622

-539,520

-535,900

0

-3,620

-539,520

-539,520

1,972,912

1,959,102

Purchases during the year include intra-group purchases totalling SEK 1,768 (previous year 1,712) thousand. Sales during the year include intra-group sales totalling SEK 3,126 thousand (previous year SEK 3,190 thousand).

Opening impairment losses Impairment losses for the year Closing accumulated impairment losses Carrying amount

101


Note 45 Specification of participations in group companies PARENT COMPANY Share of equity

Number of shares

Book value

Company reg. no.:

Domicile

Backahill Bjäre AB

100%

500

114,050

556866-5920

Ängelholm

- MMBA Holding AB

100%

3,000

0

556950-5570

Ängelholm

- GRAM GROUP AB

100%

500

0

559118-3073

Båstad

- Restaurang & Hotell Skansen i

100%

1,000

0

556599-3515

Båstad

Name

Båstad AB

0

- Torekov Hotell Resort AB

100%

1,000

0

556801-9763

Båstad

- Hotell Riviera Strand AB

95%

950

0

556977-5603

Båstad

100%

500

0

556977-5454

Båstad

- Hamnplats 3 AB - Huset vid Stranden AB

51%

510

0

556795-5868

Båstad

- Pepe’s Bodega AB

100%

1,000

0

556531-5404

Båstad

Backahill Förvaltning AB

100%

40,000

11,100

556216-9077

Ängelholm

Backahill Fastigheter AB

100%

100,000

400,465

556452-1861

Ängelholm

- Fastighets AB De-Ba

100%

50,000

0

556594-4542

Ängelholm

- Backahill Posthuset KB

100%

1

0

969692-9091

Ängelholm

- Fastighets AB Förmannen 6

100%

500

0

559000-0492

Ängelholm

- Backahill Båstad AB

100%

1,000

0

556637-7031

Ängelholm

- H.U.S Fastigheter i Båstad AB

100%

1,000

0

556668-0467

Båstad

- Backahill Apelryd AB

100%

50,000

0

559064-1501

Båstad

- Backahill Neptus AB

100%

50,000

0

559096-6114

Båstad

- Backahill Båtsmannen 6 AB

100%

50,000

0

559118-8536

Båstad

- Backahill Akvarellen 19 AB

100%

1,002

0

556793-8211

Båstad

- Backahill Evald 7 i Båstad AB

100%

1,000

0

556479-1886

Båstad

- Claerence Village AB

100%

100,000

0

556710-3469

Båstad

- Hamnbacken i Båstad AB

100%

1,000

0

556720-9241

Malmö

- Tomtbolaget i Båstad AB

100%

1,000

0

556901-1546

Båstad

- Fastighetsutveckling i Båstad AB

100%

50,000

0

556849-6318

Ängelholm

- Backahill Gamlegården AB

100%

500

0

559124-2382

Båstad

- Backahill Jungfrun 1 AB

100%

250

0

559313-6152

Ängelholm

- Backahill Torekov AB

100%

641,799

0

556531-2344

Ängelholm

- Backahill Taktäckaren AB

100%

50,000

0

559075-2514

Ängelholm

- Backahill Sandvångsgatan AB

100%

1,000

0

556202-3183

Ängelholm

- Backahill Steglitsen i Ängelholm KB

100%

1

0

969630-2638

Ängelholm

- Backahill Tingstorget KB

100%

1

0

969630-5367

Ängelholm

- Backahill Bostäder AB

100%

1,000

0

556664-2376

Ängelholm

- Backahill Cityfastigheter AB

100%

10,000

0

556725-0476

Ängelholm

- Backahill Hotellfastigheter AB

100%

500

0

556965-7223

Ängelholm

- Backahill Vilhelmsfält AB

100%

100,000

0

556810-6164

Ängelholm

- Backahill Norregården AB

100%

900

0

556527-9766

Ängelholm

- Backahill Vegeholm AB

100%

50,000

0

559093-4518

Ängelholm

- Backahill Förmannen 3 AB

100%

1,000

0

556714-1568

Ängelholm

102


Note 45 cont. Share of equity

Number of shares

Book value

Company reg. no.:

Domicile

- Backahill Loglängan AB

100%

500

0

559232-3553

Ängelholm

Backahill Projektutveckling AB

100%

50,000

25,080

556923-9477

Ängelholm

- BR i Gustavsberg AB

100%

500

0

556928-0141

Stockholm

Backahill Holding AB

100%

50,000

100

556891-0524

Ängelholm

- Backastad Omsorg AB

100%

1,000

0

556922-7514

Ängelholm

- Backastad Silvergården AB

100%

1,000

0

556922-7324

Ängelholm

- Backastad Graninge Holding 1 AB

100%

500

0

559113-8507

Ängelholm

- Backastad Graninge 1 AB

100%

500

0

559113-8549

Ängelholm

- Backastad Graninge 2 AB

100%

500

0

559113-8531

Ängelholm

- Backastad Graninge 3 AB

100%

500

0

559113-8523

Ängelholm

- Brf Graningeutsikten

100%

1

0

769639-6386

Nacka

- Graningeutsikten AB

100%

500

0

559113-8515

Stockholm

- Backastad Graninge Holding 2 AB

100%

500

0

559113-8499

Ängelholm

- Backastad Graninge 5 AB

100%

500

0

559113-8572

Ängelholm

- Backastad Graninge 6 AB

100%

500

0

559113-8580

Ängelholm

- Backastad Graninge 7 AB

100%

500

0

559113-8556

Ängelholm

- Backastad Graninge 8 AB

100%

500

0

559113-8564

Ängelholm

- Backastad Graninge Holding 3 AB

100%

500

0

559113-8481

Ängelholm

- Backastad Graninge 9 AB

100%

500

0

559113-8614

Ängelholm

- Backastad Graninge 10 AB

100%

500

0

559113-8622

Ängelholm

- Backastad Graninge 11 AB

100%

500

0

559113-8598

Ängelholm

- Backastad Graninge 12 AB

100%

500

0

559113-8606

Ängelholm

Backahill Inter AB

100%

1,000

1,028,720

556592-5913

Ängelholm

Name

Backastad AB

60%

600

3,887

556639-5579

Ängelholm

- Backastad Kavalleriet AB

100%

250

0

559313-5949

Ängelholm

- Backastad Projekt AB

100%

1,000

0

556922-7506

Ängelholm

Backahill Skåne AB

100%

50,000

50

556953-0081

Ängelholm

PMSA Aktiesparklubb AB

100%

1,000

16,360

559076-0905

Ängelholm

Backahill Utveckling AB

100%

1,000

373,100

556688-6791

Ängelholm

- Hansan AB

100%

1,000

0

556233-6304

Stockholm

- Böske Backe AB

100%

10,000

0

556617-3554

Båstad

- Böske Backe Invest AB

100%

500

0

556858-4568

Ängelholm

- Projekt Gustavsberg AB

55%

611

0

556928-0125

Stockholm

- Backahill DABS AB

51%

51

0

559076-0939

Ängelholm

- Chart Invest AB

100%

1,000

0

556698-7060

Ängelholm

- S&E Sport&Evenemang Holding AB

100%

1,000

0

556774-5202

Ängelholm

- GroPro Solution AB - Ängelholm Market AB - BLLB Fastigheter AB

90%

450

0

559349-7018

Ängelholm

100%

50,000

0

559056-3754

Ängelholm

51%

255

0

559259-6828

Ängelholm

1,972,912

103


Note 46 Receivables from Group companies

Note 49 Pledged assets

31/12/2021

31/12/2020

Opening cost

75,349

57,279

For own liabilities to credit institutions:

Future receivables

22,000

18,070

Other long-term securities/ short-term investments

1,206,739

1,004,783

Property mortgages

1,735,116

1,415,337

PARENT COMPANY

31/12/2021

31/12/2020

GROUP

Outgoing receivables Closing accumulated cost

Carrying amount

-53,800

0

43,549

75,349

43,549

Corporate mortgages

75,349

2,000

2,000

2,943,855

2,422,120

1,068

883

1,068

883

813

371

813

371

Other pledged assets and collateral Other long-term securities/ short-term investments

Note 47 Appropriation of the profit or loss 31/12/2021 PARENT COMPANY

Other pledged assets and collateral

Proposed appropriation of profits

Other long-term securities/ short-term investments

The Board of directors proposes that the profit at the Company’s disposal, comprising: Retained earnings

3,241,204

Dividend at extraordinary general meeting on 10/11/2021

-60,125

Profit for the year

617,660 3,798,738

be appropriated as follows: Carried forward

Note 48

3,798,738

Contingent liabilities 31/12/2021

31/12/2020

74,775

77,031

308,776

189,224

137,778

57,760

132

96

521,461

324,111

GROUP Contingent liabilities Liable as a partner in partnership/limited partnership Guarantees for associated companies Guarantees others Other contingent liabilities

The Group also has a capital guarantee vis-à-vis an associated company. 31/12/2021

31/12/2020

1,930,370

1,933,604

308,776

189,224

PARENT COMPANY Contingent liabilities Guarantees for subsidiaries Guarantees for associated companies Guarantees others

104

PARENT COMPANY

137,778

57,760

2,376,924

2,180,588


Note 50 Significant events after the end of the financial year GROUP We are following the developments of the war in Ukraine carefully and continuously analysing the risks to our business. We expect the war to have a limited impact on our operations, although there may be some delivery problems for ongoing projects. However, the wider context creates uncertainty in financial markets with rising prices, leading to lower purchasing power, rising inflation and the risk of rising interest rates. Our assessment at this stage is that the short-term impact will be limited, and with a strong balance sheet and good liquidity in the Group, we can act to ensure continued long-term growth. In March it was announced that Backahill was selected to purchase the Hälsostaden part of the Södra Sjukhus area in

Ängelholm. The property purchase, which comprises 61,000 square metres, means that the Company can now go ahead and realise Campus Ängelholm. Company Backahill Gamlegården AB sold the Banken 2 property in Båstad. Construction of a new car vendor hall has started on a property belonging to Backahill Taktäckaren AB. Backahill Båstad signed an agreement regarding the sale of the companies Fastighets Utveckling i Båstad AB and Tomtbolaget AB to an external party. GroPro Solution AB acquired additional shares in the company GroPro AB, which is now a subsidiary. Backahill AB acquired shares in Backahill Invest AB. Backastad AB acquired shares in Backastad Nöthagen AB.

Ängelholm, 20 May 2022

Erik Paulsson

Bo Forsén

Chairman

Sara Karlsson

Svante Paulsson

Jan Litborn

Lennart Mauritzson CEO

Our audit report was submitted on 20 May 2022 Ernst & Young AB

Per Karlsson Authorised Public Accountant

105


Auditor’s report To the general meeting of the shareholders of Backahill AB, corporate identity number 556590-8547

REPORT ON THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS Opinions We have audited the annual accounts and consolidated accounts of Backahill AB for the year 2021-01-01 - 2021-12-31. The annual accounts and consolidated accounts of the company are included on pages 72-105 in this document. In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the group as of December 31, 2021 and their financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, the Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are

106

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director. • Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.


• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Backahill AB for the year 2021-01-01 - 2021-12-31 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to

the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined whether the proposal is in accordance with the Companies Act.

Ängelholm May 20, 2022 Ernst & Young AB

Per Karlsson Authorized public accountant

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Board of directors

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Erik Paulsson

Sara Karlsson

Svante Paulsson

Chairman

Board member

Board member

Bo Forsén

Jan Litborn

Board member

Board member


Management team

Lennart Mauritzson

Magnus Swärdh

Anders Nelson

Group CEO/President

CFO

Business development manager

Sara Karlsson

Svante Paulsson

Jerry Zander

Strategy & Projects

Strategy & Projects

Property Director

Dag Thulin

Annette Bergenhem

Fredrik Henrysson

Marketing & Project development

Financial manager

Bjäre Property & Projects

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View of Båstad, focusing on the port and Skansen area.



Backahill | Svenskehögsgatan 11 | 262 33 Ängelholm Sweden | +46 (0)431-41 51 00 | backahill.se