2 FEBRUARY, 2017 DISCLAIMER Important information This - PowerPoint PPT Presentation

RIGHTS ISSUE 2 FEBRUARY, 2017

DISCLAIMER Important information This presentation constitutes merely an advertisement under Chapter 2, Section 32 of the Swedish Financial Instruments Trading Act and does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in Kungsleden. Any invitation to the persons concerned to subscribe for shares in Kungsleden will only be made through the prospectus that Kungsleden estimates to publish on its website, www.kungsleden.se, on or around 9 March 2017. This presentation may not be released, published or distributed, directly or indirectly, in or into Australia, Hong Kong, Japan, Canada, Singapore, the United States or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this presentation be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities laws. No subscription rights, BTAs (interim shares) or new shares will be registered under the United States Securities Act of 1933 (“ Securities Act ”) or securities legislation in any state or other jurisdiction in the United States and may not be offered, subscribed, used, pledged, sold, resold, allotted, delivered or otherwise transferred, directly or indirectly, within the United States, other than pursuant to an exemption from the registration requirements of the Securities Act and in accordance with securities laws in relevant state or other jurisdiction in the United States. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. This presentation may contain forward-looking statements which reflect Kungsleden’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements. The publication of this presentation shall not be deemed to imply that the information herein is accurate or applicable at any time other than on the date of the publication of this presentation or that there have been no changes in Kungsleden’s business since this date. No person, including Kungsleden and its advisors, is under any obligation to update the information contained in this presentation. Neither Kungsleden nor its advisors make any guarantee, representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation, and no reliance should be placed on such information. Neither Kungsleden nor any of its advisors accept any responsibility for any loss arising from the use of this presentation or in connection therewith. By accepting any copy of this document, you agree to be bound by the foregoing limitations. ABGSC, Kempen & Co and SEB are acting as Joint Global Coordinators and Joint Bookrunners and Mannheimer Swartling Advokatbyrå is acting as legal advisor to Kungsleden in the envisaged rights issue. KUNGSLEDEN AB (PUBL) | 2

INTRODUCTION  Subject to EGM approval, Kungsleden´s board has resolved to conduct a rights issue of approximately SEK 1.6 billion with pre- emptive rights for our shareholders.  Two major shareholders confirm our strategy and the rights issue by committing to subscribe pro-rata to their current shareholdings: − Gösta Welandson with companies (14.2 per cent of capital and votes) − Olle Florén with companies (3.0 per cent of capital and votes).  Our largest shareholder, Gösta Welandson, has expressed his long- term commitment to Kungsleden by underwriting the rest of the rights issue.  Gösta Welandson: ”The Welandson family will underwrite the rights issue. We see this as a step towards further strengthening Kungsleden´s financial position as well as securing the company´ s strategy and future.” KUNGSLEDEN AB (PUBL) | 3

BACKGROUND  Our 2020 business plan is focused on quality growth, optimization of the property portfolio and financial stability in order to create attractive total returns.  Over the past years, our property portfolio has become geographically focused on a limited number of growth regions with concentration in the office segment.  Close to 80 per cent of the property holdings are currently located in Stockholm, Gothenburg, Malmö and Västerås. Offices comprise 65 per cent of the portfolio.  Our strategy is to own properties in clusters. The cluster strategy makes it possible to strengthen the customer value proposition and achieve asset and property management synergies. Today we have eleven clusters.  We will continue realizing value today and forward by divesting potential residential building rights in the existing property portfolio.  The target is that our earnings shall grow by increasing the net operating income generated by the existing properties and by growing the portfolio through investments and selective acquisitions. KUNGSLEDEN AB (PUBL) | 4

RATIONALE AND USE OF PROCEEDS  The main purpose of the rights issue is to strengthen our balance sheet and enable further profitable growth with financial discipline.  The rights issue proceeds will be used for: 1. Value-creating investments in the existing property portfolio. − Strong new lettings in 2016 enables profitable investments in tenant improvements and modernization. − Robust yielding pipeline consisting of re-development, extension projects as well as new construction. − Total planned investments of SEK 2-3 billion for 2017-2019 enabling primarily higher rental income but also reduced operating costs. 2. Strategic add-on property acquisitions − Selective high-quality acquisition opportunities in our core markets such as Emporia Office in Hyllie (Malmö). 3. Liability management enabling a stronger balance sheet with lower financial leverage, targeting an LTV in the interval 50-55 per cent at this point in the cycle. KUNGSLEDEN AB (PUBL) | 5

KEY FINANCIAL EFFECTS  The SEK 1.6 billion of capital expected to be raised in the rights issue will positively affect key financial ratios originating from stronger equity and reduced net debt.  Based on the financial accounts as of 30 September 2016, and including the SEK 1.6 billion rights issue, the loan-to-value ratio and equity ratio are expected to change as below, resulting in a stronger balance sheet: − Loan-to-value ratio: 53 per cent (58 per cent per 30 September 2016). − Equity ratio: 38 per cent (35 per cent per 30 September 2016).  Kungsleden´s LTV policy: LTV should be in the interval of 50-60 percent through the cycle with an average over time of 55 per cent.  At this point in the cycle, Kungsleden will be striving for a LTV in the interval of 50-55 per cent. KUNGSLEDEN AB (PUBL) | 6

PRELIMINARY TIME TABLE  2 February Notice of Extraordinary General Meeting  16 February Publication year-end report 2016  1 March Publication of final rights issue terms (including subscription price and subscription ratio)  6 March Extraordinary General Meeting  Last day of trading in Kungsleden’s shares including 6 March the right to participate in the rights issue  8 March Record date for participation in the rights issue  9 March Expected publication of the prospectus  10 – 22 March Trading in subscription rights  10 – 24 March Subscription period  31 March Expected date for announcement of final outcome of the rights issue KUNGSLEDEN AB (PUBL) | 7

” We are very pleased that our largest shareholder has expressed such a clear and long-term support for the company ´ s strategy and the rights issue ”

QUESTIONS ARE WELCOME! 9