W i h l b o r g s F a s t i g h e t e r a b • t h e a N N U a l r e P o r t • j a N U a r Y – d e c e m b e r
MILJÖMÄRKT Production: Wihlborgs in collaboration with Pennan AB, Lund 2010.
Photographs: Joachim Karlsson, Johan Windh, Marcus Carlsson, Ola Hansson, Stefan Larsson och Martin Palvén. Print: Holmbergs.
Wihlborgs is the leading property company in the Öresund region.
The properties’ book value totals SEK 14,4 billion with a lettable area of 1,3 million m2 and an annual rental value of SEK 1,4 billion.
Wihlborgs shares are listed on OMX Nordic Exchange, Mid Cap.
Financial information 2010
Interim report January-March: 21 April Interim report January-June: 7 July
Interim report January-September: 28 October Invitation to the Annual General Meeting
The Annual General Meeting of Wihlborgs Fastigheter AB (publ) will take place at 17 p.m. on Wednesday 21 April 2010 at Slagthuset, Jörgen Kocksgatan 7A, Malmö. Shareholders wishing to attend the meeting must be included in the register of shareholders maintained by Euroclear Sweden AB (former VPC AB) by 15 April 2010 at the latest, and must also send notification of their participation by letter to Wihlborgs Fastigheter AB, Box 97, 201 20 Malmö, or by e-mail to annika.lindvall@wihlborgs.se or phone on +46 40 690 57 70 or fax on +46 40 23 45 52.
Notification must reach Wihlborgs by 4 p.m. on Thursday 15 April 2010.
The notification must state the shareholders’ name, civic registration number/corporate identity number, address, telephone number and number of shares owned. Shareholder with nominee-registered shares in order to participate must re-register their shares in their own name with Euroclear Sweden AB. A request for such re-registration must be made in good time before 15 April 2010.
Key ratios1 2009 2008
Rental income, SEKm 1,236 1,168
Net operating income, SEKm 888 832
Profit from property management, SEKm 541 450
Return on equity, % 11.8 -1.2
Equity/assets ratio, % 29.6 29.4
Interest coverage ratio, multiple 2.7 2.2
Earnings per share, SEK 13,43 -1,32
Cash flow from operations before change in working capital, per share, SEK 14,86 12,04
Dividend per share, SEK2 6.75 6.50
1 For definitions, see page 88.
2 This refers to the Board of Directors proposal of dividend for 2009.
The profit of the year increased with SEK 536 million to SEK 487 million (-49) and earnings per share SEK 13.43 (-1.32)
Rental income increased by 6 per cent to SEK 1,236 million (1,168) Net operating income increased by 7 per cent to SEK 888 million (832)
Earnings from property management increased by 20 per cent to SEK 541 million (450) The Board proposes a dividend of SEK 6.75 (6.50) per share
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The year in summary
The year in summary 2 CEO´s review 4 History
6 Business concept, objectives and strategies 8 Organisation and employees Sustainable
enterprise 6 The share
8 The Öresund region
2 Property portfolio 38 Projects and
development 40 Valuation principles 42 List of property
acquisitions and sales 45 List of properties 52 Risk factors and
tax situation 55 Administration Report
CONTENT
FINANCIAL REPORTS Group
59 Profit and loss account 60 Balance sheet
6 Changes in equity 6 Cash flow statements Parent Company
62 Profit and loss account 63 Balance sheet 64 Changes in equity 64 Cash flow statements 65 Notes, Group & Parent
Company
77 Signing of the Annual Report 78 Audit Report 80 Corporate
Governance Report 88 Five-year summary
and definitions 89 Articles of Association
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2009 was again a successful year for Wihlborgs. Pre-tax profit increased by no less than SEK 536 million to SEK 487 million. This includes write-downs of buildings held for investment purposes as a consequence of increased direct required return. These are however balance for the most part by revaluing our project port- folio in accordance with new IFRS regulations. The net result was a value increase of SEK 16 million.
Considering the present financial climate with credit restrictions and a business cycle that could almost be compared with the depression of the 1930s, I feel we all have good reason to be satisfied with this year’s result.
5th year in a row with improved management results What we perhaps can be most satisfied with is that, for the fifth year running, we can deliver a better manage- ment result which, in 2009, was more than 20% better than 2008. However the buildings held for investment purposes have experienced a favourable situation with relatively low unemployment and low interest rates de- spite the threatening market scenario during 2009.
The latter naturally favours us in particular who finance activities with flexible interest rates.
Concentration on a growing market
For a long time we have concentrated on commercial properties in the Öresund region. A region that has coped well with the recession. The future also looks bright with a number of interesting projects.
The occupancy rate in Wihlborgs management stocks are unchanged 94 per cent. Lease levels are also stable at rates of more than SEK 2,000 per m2 for the best locations such as Västra hamnen.
Our leading position gives us competitive and market advantages
We are the market leader in terms of commercial premises in the Öresund region. This, together with
the fact that we operate primarily with carefully- selected locations in the region’s most important towns, means that we are often the first choice for both new and existing clients. Our leading position also gives us economies of scale which improve our margins and competitiveness.
Active development provides the base for our success Behind our successes also lies long-term and active development of attractive office areas in areas such as Centrum and Berga in Helsingborg, Ideon in Lund, Herlev in Copenhagen, Malmö Centrum, Medeon and, not least at Dockan. The latter is considered to be one of the country’s best office locations.
Development means that in a responsible manner we sometimes choose to sell properties that do not harmonise with our strategy although this is done in a responsible manner. In this way we create space to develop new areas and premises. There were, however, few transactions in 2009. The reason for this was res- trictive banks. However we sold 18,000 m2 distributed over ten different properties of which five were in Malmö. The total purchase price exceeded the values from the previous turn of the year by SEK 54 million.
New creative projects
We continue to develop Dockan in Malmö. Region Skåne will be moving to its new premises in the autumn of 2010. We then expect to continue the development with a new office project.
During the year we have also acquired two premises totalling 21,000 m2 which complement and reinforce our interesting project portfolio in and around Dockan.
During the course of 2009 we acquired Kockums head office, known as Gängtappen, one of Malmö’s best-known buildings. We have extended the right to erect buildings covering 15,000 m2 on an associated plot.
CEO´s rEviEw
3 In December we acquired 5,300 m2 of newly-built pre-
mises located at Varvsstaden next to Dockan. Sveriges Television has moved in here. The deal also includes the right to build on 8,800 m2. This is where we are planning Media Evolution City (MEC) premises which are especially designed for film and other entertain- ment facilities. There is a fully-planned building ready to be built as soon as we have tenants in place. With the advent of MEC we are entering a new future segment for Malmö.
To further increase Dockan’s attractiveness we are intensifying the work of detailed planning in order to build a hotel here. With its location next to the sea and its proximity to Centralstationen/Citytunneln we believe this will be Malmö’s most attractive hotel.
In Lund work is continuing on the development of Ideon which will become increasingly attractive with its proximity to MAX IV and ESS. As soon as people have moved into their new premises at Dockan we can begin to develop Region Skåne’s present premises in Lund.
This in itself is a challenge but we have a number of proposals to work with.
responsible development
We can and are permitted to manage these develop- ment projects since our interested parties such as clients, financers and authorities know that we deliver what we promise. In brief – we take responsibility for our undertakings irrespective of whether this is a leaky tap or the development of a new area. This is necessary if we are to be considered the priority company by all our interested parties who meet almost on a day-to-day basis on site.
We also take responsibility for sustainable develop- ment through a number of long-term activities that will minimise the impact on our environment. This includes clear and demanding objectives, property site clearance and reduced energy consumption. This also
includes investments such as the aquifer plant that re- duces CO2 emissions from our properties at Dockan to zero. Another is our gas-powered service vehicles. Our environmental work is now continuing through mapp- ing a number of processes’ environmental impact. We have also initiated a project to measure CO2 emissions from each workplace. This will form the basis for a number of initiatives.
The capacity to be creative and responsible Ambitions are all very well. We have, however, the financial and human resources to deliver creative solu- tions in a responsible manner in both good and more uncertain times.
We have a stable balance sheet with continuous cash- flow that permits new and interesting deals. We have a decentralised organisation with competent, committed and, not least, creative and responsible colleagues who can pursue such deals.
These are the people whom I would like to thank for especially good contributions in 2009 and whom I am convinced will perform equally well during 2010.
As such, we create values for our shareholders and all interested parties.
Malmö, March 2010
CEO´s rEviEw
Anders Jarl CEO
”Creative and responsible development.”
4
hisTOry
The Annual General Meeting of 9 May 2005 decided in accordance with the Board’s proposal to change the name of the Company from Wihlborgs Fastigheter AB to Fabege AB. This occured as a result of the impending distribution of the Company’s portfolio in the Öresund region under the Company Wihlborgs Fastigheter AB.
The following section presents the history underlying the development of the property portfolio in the Öresund region. The company referred to below up to the year 2004 as Wihlborgs Fastigheter AB is the current Fabege AB.
924 In 1924, master builder O P Wihlborg established a building company in Malmö that provided the name for Wihlborgs Fastigheter AB. For a protracted period, the Company built, owned and administrated properties in Malmö.
985 Building operations are sold to the Active Group, based in Malmö, and the Company becomes a traditional property company.
990 Wihlborgs Fastigheter AB is listed on the Stockholm Stock Exchange’s O-List. Peab AB becomes the new majority shareholder in Wihlborgs.
993 In conjunction with a new share issue of SEK 371m, Wihlborgs Fastigheter AB acquires 33 properties in Sweden, of which 22 properties are located in Malmö and Helsingborg. Bergaliden becomes the new major shareholder in Wihlborgs Fastigheter AB.
history
995 Fastighets AB Stillman is acquired.
996 Wihlborgs Fastigheter AB acquires 76 properties from Retriva (currently Kungsleden). Wihlborgs and Fastighets AB Storheden conduct an exchange of properties. The Board of Directors in Wihlborgs makes a public offer to acquire M2 Fastigheter AB.
The company establishes a presence in Denmark through the acquisition of two properties.
997 During the spring, Wihlborgs Fastigheter AB completes the acquisition of M2 Fastigheter AB.
998 Wihlborgs Fastigheter AB completes the acquisition of Klövern Fastigheter AB and gains properties in Malmö and Helsingborg, as well as in Stockholm and the Netherlands. Wihlborgs Fastigheter AB makes an offer for Fastighets AB Storheden. As a result, the Stockholm area be- comes a key part of the Company’s operations.
2000 JM, Peab and Wihlborgs Fastigheter AB esta- blish a new joint development company for the development of the Dockan district in Western Harbour, Malmö.
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hisTOry
2004 Wihlborgs Fastigheter AB acquires the Stock- holmbased property company, Fabege AB. In December, the Board of Directors in Wihlborgs Fastigheter AB proposes that the Annual General Meeting of 9 May 2005 approve the distribution and separate listing in accordance with Lex ASEA of the property portfolio in the Öresund region.
2005 The distributed company is given the name Wihlborgs Fastigheter AB and the distributing company changes its name to Fabege AB. 23 May 2005 Wihlborgs Fastigheter AB is listed on the Stockholm Stock Exchange’s O-list.
2006 Wihlborgs acquires 14 properties in Malmö with a total lettable area of 182,000 m2 from Tornet. Wihlborgs acquires Ideon AB in Lund by purchasing 40 per cent of the shares. The re- maining 60 per cent was occupied in April 2009.
The purchase includes the property Betahuset at Ideon (Vätet 1) totalling 24,000 m2. During May Wihlborgs implements a 2:1 share split, one old share was replaced with two new shares.
2007 Wihlborgs continues to invest in Lund and sets up a new office at Ideon. An agreement is signed with Mercedes on the construction of a new Nordic head office at Dockan. Wihlborgs initiates a repurchase program of its own shares.
2008 Wihlborgs leaves Germany in connection with the sale of the remaining office property at Lippeltstrasse in Hamburg. Agreements are signed with ÅF and Region Skåne for two new office properties at Dockan. An agreement is signed with Honda on the construction of a new head office at Svågertorp. Wihlborgs acquires the Scandinavian Center property in Malmö of 8,000 m2. Wihlborgs continues with the repurchase of its own shares and acquires 1,217,000 of them. Its holding at the end of the year was 2,214,350 shares.
2009 Wihlborgs acquires Gängtappen in Dockan and the property for Sveriges Television (SVT), located in Varvsstaden. An agreement is signed with Comfort Hotel on the rebuilding and extension of Europe’s largest Comfort Hotel situated within Slagthuset in Malmö. Wihlborgs acquires the remaining 60 per cent of the Ideon shares.
Wihlborgs disposes of 1,250,000 own shares at a price of SEK 128.50 per share. The shares were earlier acquired at an average price of SEK 98 per share.
business concept
business concept, overall objectives and strategies
Wihlborgs is a property company focusing on commercial property in the Öresund region. The criteria for long- term and acceptable value growth are created by activities being characterised by a clear, cashflow-oriented strategy where the creation and realisation of added value are important factors. Together with a clear dividend policy the overriding objective is to create a good over- all yield for the shareholders.
business concept
Wihlborgs shall own, manage and develop commercial properties with a focus on well-functioning sub-markets in the Öresund region.
overall objectives and strategies
Wihlborgs aims to be the leading and most profitable property company in the Öresund market. To attain this, Wihlborgs must:
Consolidate and further strengthen its market positions in the Öresund region by concentrating on selected sub-markets.
Actively improve the property portfolio by purchasing, developing and divesting properties. Realisation of value growth will form a key part of the operations.
Actively and efficiently manage the property portfolio with the focus on high cost-effectiveness and a high occupancy rate by being a market leader in each sub- market.
Strengthen customer relations by active involvement and offering a high level of service in order to create the necessary conditions for long-term rental relation- ships.
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Actively cultivate the rental market to obtain new customers and strengthen the brand in order to become the preferred choice for customers.
Financial goals Wihlborgs is to show:
A return on shareholders’ equity that exceeds the risk-free interest rate by at least four percentage points1. The objective changed to six percentage points from 2010.
An equity/assets ratio of a minimum 25 per cent and a maximum of 35 per cent.
An interest coverage ratio to at least 2.0.
The above financial goals have to be achieved through the active development of assets and liabilities and capital structure. Wihlborgs shall always have a capital structure that gives the maximum return to shareholders, with due consideration of risk.
Dividend policy
Wihlborgs’ dividend policy is based, firstly, on transferring part of the profit generated by property management and, secondly, on transferring realized valuegrowth:
The dividend is to amount to 50 per cent of profit from ongoing property management2.
In addition, 50 per cent of realised profits from property sales are to be distributed3.
1 The risk-free rate of interest is defined as the rate on a 5-year Swedish government bond.
2 Profit from management charged with 26.3 per cent standard tax.
3 Difference between the sales price and total capital invested, charged with 26.3 per cent standard tax.
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OpErATiONs
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AFFärsiDé, mål OCh sTrATEgi
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busiNEss CONCEpT
Hästhagen 7 Helsingborg South
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OrgANisATiON AND EmplOyEEs
Organisation and employees
Wihlborgs is characterised by a flat organisation with short decision paths. Wihlborgs’ organisation is designed to increase profit from day-to-day management while creating new business at the same time.
legal structure
Wihlborgs Fastigheter AB (publ), corporate ID number 556367-0230, is the parent company of a group with a total of 125 group companies and six joint ventures.
Joint ventures
Wihlborgs owns 40 per cent of Medeon AB. This is a marketing company that is operated together with Malmö Stad.
50 per cent of Ideon Center AB is owned by Wihlborgs and Ikano Fastighets AB. The company will be responsible for marketing Ideon and providing joint functions.
Wihlborgs also owns 33.3 per cent of Dockan Exploat- ering AB. The company is engaged in the production of detailed plans and infrastructure investments for the new Dockan district located at Western Harbour in Malmö. JM and Peab each own equal shares in Dockan Exploatering. In 2009 Wihlborgs, Peab and Region Skåne each invested an equal amount in Hälsostaden Ängelholm Holding AB which, in turn, owns all partici- pation rights in Hälsostaden Ängelholm AB. At the end of December 2009, the subsidiary acquired all the properties belonging to Ängelholm hospital and shall work towards developing the hospital area and create the criteria for a Hälsostad with a broad range of health care services and health-promoting activities.
Other joint ventures do not operate any activity.
Operating structure
The operating organisation comprises the Management and the Business Development function. Management is adapted according to local market criteria and is organised as eight geographically-distributed manage- ment units. The purpose is to create the criteria for management that is effective and close to clients.
All management is provided by the company’s own staff so that is can be close to clients and can quickly respond to their expectations and demands. It is im- portant that employees know their regular clients and are available. Each management unit has a manager with a clear profit responsibility. The manager sets up the guidelines for his activity in close collaboration with group management.
Business development comprises two parts; Projects and Development as well as Transactions. Projects and Development has a central role for improvements to the property portfolio and is responsible for new and redevelopment projects as well as procurement and monitoring. Investments in properties are prepared and evaluated by the respective manager together with a project manager. Investments in excess of SEK 10m shall be approved by the board.
Transactions are responsible for all the company’s purchases and sales of properties. The transactions unit continuously monitors potential business. Evaluation is often performed in consultation with Administration to make the most of skills it has in terms of local market knowledge etc. When assessing property acquisitions the analyses conducted include the property’s long- term yield, technical standard, development potential and tenant structure.
In addition to the operative organisation there are the group functions Economy/Finance as well as Communication and IT.
Group Management comprises the CEO, economy and finance director, property director, information manager and business developer. The responsibilities of group management include overall responsibility for business development, economic control and profit monitoring as well as issues concerning information.
There is also a management group that comprises all eight administration managers and group manage- ment. Among the issues dealt with by the management group are major strategic questions.
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OrgANisATiON AND EmplOyEEs
system support
Wihlborgs employs different system supports to effect- ivise its activities. The Vitec Nova lease system is used within lease administration. This is where all lease contracts are registered. All administration that applies to tenants is managed from Vitec. The Visma Control economy system is used for day-to-day accounting while Ocra is used for consolidated accounting. All invoicing is processed digitally with scanned invoices in the Baltzar invoice processing system.
Wihlborgs has developed its own tool, Hemborgen, to support property management and administration.
This is integrated with the lease and economy system.
Since all information is gathered in one place, it can be easily accessed by the entire organisation. Hemborgen contains modules for dealing with operating costs concerning the company’s tenants, income reports and analysis of lease contracts. Hemborgen also contains an archive of all documents that concern properties and an archive of all documents that concern companies.
This is where all information can be entered in order to monitor and follow up due dates and updates.
Employees
As at 31 December 2009, the number of employees was 80. The proportion of employees with an academic qualification was 30 per cent. The average age of the employees was 49 and the proportion of women amounted to 33 per cent. The company’s staff turnover in 2009 amounted to 8.7 per cent. The organisation comprizes 16 managers, of which 9 is men and 7 women.
sickness absence
Wihlborgs has a low level of sickness absence which in 2009 amounted to 2.82 (2.01) per cent. The proportion of long-term sickness absence for 2009 was 61.31 (37.40) per cent. All employees are covered by health care insurance.
incentive programme
Employees in the group, with the exception of the CEO, benefit from the profit-sharing fund. The purpose of the profit-sharing fund is to stimulate employees to achieve predetermined objectives that are part of the company’s activities.
A whole proportion in the event of maximum allocation corresponds to shares in Wihlborgs to a value of one base amount which is currently SEK 42,400. All employees receive equal shares in the fund irrespective of their position in the company. The share amount in the case of part-time employees or those who work only part of the year is adjusted.
All funds that are allocated to the profit-sharing foundation shall be invested in shares in Wihlborgs.
Dividends are also reinvested in Wihlborgs shares. The share holding was 103,200 as of December 31. The foundation will manage the shares for at least five years before there is a distribution of the profit shares.
FEmAlE AND mAlE mANAgErs (TOTAl 6 pErsONs)
Men 56%
Women 44%
Malmö 3 management units Lund 1 management unit Helsingborg 3 management units Copenhagen 1 management unit
Purchase Environment
Projects and
development Transactions
Management Business Development
Communication/IT Economy/Finance
Group Management
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ThE ENvirONmENT
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Polisen 3
Helsingborg Centre
satisfied employees work well
For us it is important to have satisfied employees who are happy working at Wihlborgs. What then is it that makes people happy at Wihlborgs? Well – freedom with responsibility and the potential for development within the company. All employees can influence their own work situation. The organisation is flat and the path between suggestion, decision and action is often short.
Good health is obviously beneficial to the individual but also necessary for the company and its profitability.
That is why Wihlborgs has invested for several years in generous fitness facilities for all its employees in the form of unlimited access to training and exercise at Friskis & Svettis in Malmö and Aktiverum in Helsing- borg. We also offer fitness activities such as training runs and the step competition in which we participated in the spring of 2009. It is gratifying that investments in health care have produced tangible results in terms of wellbeing and low sickness absence.
We also have preventive fitness care in the form of regular health checks at our corporate health care facility and health care insurance that is available to all employees.
For those who are interested in art we have had an art association for a number of years where members can purchase shares and can win works of art during an annual art lottery.
To enhance each individual’s sense of participation in the activity and give an additional inducement to achieve predetermined objectives, Wihlborgs founded a profit-sharing foundation in the form of Wihlborgs shares in 2005. The foundation applies to all employees except the CEO. The shares are restricted for five years after allocation.
lifetime learning
Wihlborgs encourages all employees to take part in skills development, ideally as a personal initiative.
During the Autumn and Spring of 2008-2009, our ad- ministration managers took part in leadership training.
All employees are trained in fire fighting, first aid as well as cardiopulmonary resuscitation (CPR). Employees participated in a number of individually-tailored training initiatives and courses in 2009.
Every year Wihlborgs offers work experience places sustainable enterprise
What is it in reality that makes one company more sustain- able than another? The answer, we believe, is that it is important to raise the bar and to try and go one step further than what is demanded in law in order to be a good landlord, employer and player in society. Being one step ahead rather than one step behind is self-evident to Wihlborgs Fastigheter.
sustainable for employees
Wihlborgs is the leading, listed commercial property company in the Öresund region. Not just a market leader – being a leader also means that we have a guiding set of principles in relation to our employees. This set of principles is based on our value words to which all employ- ees have contributed and identified. This is the way we create affinity, a cheerful atmosphere, commitment and direction in our day-to-day work – and become an attractive employer.
The fact that Wihlborgs’ employees, all 80 of them, are happy at work is the foundation of Wihlborgs’ long- term success.
Common value words
We articulated our value words during 2007 in a process that involved all employees at Wihlborgs. The process led to four evaluations that permeate all we do. The value words are:
Ability to take action Honesty
Knowledge Mutuality
The evaluations and our policies are consolidated in a staff handbook that we have published on the intranet.
Equality and diversity
Recruitment is not just a matter of employing a person with the right skills. The person shall be part of the whole that we always observe from an equality and diversity perspective. It is our belief that a balanced gender distri- bution where men and women can contribute with their competencies and experience serves Wihlborgs best.
Furthermore we endeavour to ensure that, on the whole, Wihlborgs shall reflect society as it is today with employ- ees from different cultures and backgrounds.
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to a number of students from colleges and universities in Malmö and Lund. The students usually come from property-related training programmes. Wihlborgs also encourages collaboration with other property companies in the form of skills interchange and the evaluation of different programmes.
The working environment makes the difference The fact that the workplace is safe, secure and without the risk of incidents and accidents is fundamental to a company that wishes to offer its employees a sense of well-being and work satisfaction. That is why we work continuously with health and safety issues at Wihlborgs.
This is done through a working environment group that drives improvement work with subsequent evaluation.
The responsibility for our working environment is not just that of the group – it is shared by everybody.
Naturally we have instigated a system for internal checking as required by the Work Environment Act but we wish to exceed the intentions of the act. The Working Environment Act has a systematic impact on how we plan, manage and monitor all parts of our activities. To facilitate our daily working environment tasks there are clear procedures concerning sickness absence, rehabili- tation, ergonomics, dealing with unhealthiness and accidents, and reporting incidents.
Through personal commitment and mutual care, the risk of industrial injury is minimised and we achieve a good working environment. Each and everybody is formally obliged to comply with instructions and proce- dures and to report any risks and threats to the working environment directly.
Employees with special competence conduct regular safety rounds in the property portfolio. They examine the working environments and assess the risks, they know how to report them, and they compile action plans that lead to beneficial results.
sustainability - both locally and globally
During 2009 Wihlborgs elected to participate in the CSR Skåne network. This is a network that has recently been started for companies and organisations in Skåne who wish to gain knowledge, experience and tools for work within social responsibility. CSR stands for Corporate Social Responsibility. During 2009 Wihlborgs compiled an action plan for how we shall develop further within CSR.
Different activities will be initiated in 2010. Wihlborgs has also decided to sign up to the UN’s Global Compact which, incidentally, agrees with our ethical guidelines.
The signing will take place in the first half of 2010.
You can read more about Global Compact at www.unglobalcompact.org
business ethics
Wihlborgs’ business ethics form the basis for the company’s relationship with employees, clients, suppliers and other interested parties. Wihlborgs shall act within the law and international conventions that exist. This means that Wihlborgs shall comply with current regula- tions within competition, environmental and workplace legislation or other requirements and provisions that con- cern Wihlborgs’ management and project organisation.
Employees within Wihlborgs are not permitted to accept unwarranted gifts or rewards from a third party that can influence or can be considered to have an impact on objectivity in a procurement decision.
During the execution of his/her duties at Wihlborgs, no employee shall use bribes, slush funds or other payment for the purpose of reaching a business arrangement in relation to customers, suppliers or other interested parties. Wihlborgs acts to support international regu- lations governing human rights. Wihlborgs supports diversity and equality. There shall be no discrimination with regards to nationality, gender, race, religion, age, sexual orientation, political views, organisation affilia- tion, social background or ethnic origin. Child labour shall never occur within Wihlborgs or any of Wihlborgs’
business relationships.
Environmental sustainability
Again, the environment was a focus area in connection with the UN Climate Conference (COP15) in Copen- hagen in December 2009.
The City of Malmö implemented a special initiative on the climate issue prior to COP15 in Copenhagen.
Klimat Malmö is an umbrella for a number of climate activities undertaken by a number of players in Malmö.
The organisation has produced a special “Klimat Malmö” logo which companies who have made a local environment impact can apply to use. We have applied to use the logo for our gas-driven vehicles that are seen daily in Malmö, Lund and Helsingborg. Our applica- tion is a way of making the investment more visible.
sustainability with energy effectivisation
Wihlborgs’ most important environmental issue is the energy that our properties consume. This is why many of our environmental objectives are linked specifically
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to energy effectivisation. This is a task that Wihlborgs’
energy and environment group drive continuously (see the examples on the following pages). During 2009 we have continued to compile energy declarations for our properties. The energy declarations have been compiled by The National Board of Housing, Building and Plan- ning and provide a tool for reducing energy usage in a building. An energy declaration is compiled by an energy expert together with the property owner. The result shows how much energy is consumed by the pro- perty and also provides advice on how the building can become more energy-efficient. We use this advice in our energy-effectivisation project that is designed to meet the environmental objectives.
Dockan – This is where things are happening The Dockan area lies in the centre of Malmö and is with- in walking distance from the central station. Wihlborgs is expanding at Dockan, especially in terms of new pro- duction. In 2009, Wihlborgs applied to become a Green Building partner at a property level where the application object is located at Dockan. Among other issues, this concerns an energy inventory which shall illustrate that the building will use 25% less energy than that required by The National Board of Housing, Building and Planning’s building regulations. We have attached an action and reporting-back plan to the application documents. In December 2009 came the news that Wihlborgs had been approved as a partner.
All the properties that we had built at the Dockan area were produced with an individual environmental programme. The programme also deals with different parts that are important from sustainability perspective.
This requires that the properties lie close to public transport and that it is easy to cycle to and from work etc. This is also why the properties in the area have good cycle racks and that we incorporate the option of taking a shower after a cycle trip at the workplace.
We also make sure that the area offers plenty of green spaces. In this case this is done planting sedum on the roofs. We also have guidelines for daylight and light distribution in the properties at the Dockan area.
From the outset, the Dockan properties are planned to facilitate sorting at source. All the materials in the pro- perties are documented and there is a list which states what is permitted or not permitted where the choice of material is concerned. At the Dockan area we have also been able to use energy-efficient technology which results in an energy consumption at a Green Building level.
ideon science park, development potential and environmental possibilities
At Ideon Science Park in Lund, Wihlborgs owns half the total office space area, in other words 40,000 m2. Many of the companies that have become established at Ideon are growth companies and quite often within environmental technology. Environmental technology is a collective term for technical solutions designed to be environmentally-friendly. This can cover everything from the development of wind power and environmentally- friendly vehicles to environmentally-friendly chemicals in industrial processes and water treatment plant.
During 2009, together with other owners and players, we implemented several activities within the environment and with the focus on climate-smart communications.
Ideon Science Park offer the potential for video and telephone conferencing, Ideon cycles, car pool and the proximity to public transport. During 2009 Ideon has also conducted campaigns to reduce collective emissions.
The area is about to expand and will have a high environ- mental profile. Incidentally, Ideon is heated with district heating and cooled with district cooling.
Central location in helsingborg with the latest technology
The property known as Polisen 3 underwent complete renovation in 2008 and we fitted it with the latest tech- nology. The rebuilding meant the replacement of units as well as new ventilation and control functions. This means that the property can be controlled down to the smallest detail via a specific IT system.
MWh before installation
MWh after installation Cost SEK after installation Cost SEK before installation ENErgy CONsumpTiON iN
mwh bEFOrE AND AFTEr: COsTs iN sEK bEFOrE AND AFTEr rEbuilDiNg:
4
6000
5000
3203
5166
1022 4000
3000
2000
1000
0
co2/ton/2009
Industrial/
Warehouses Offices/Retail Projects
susTAiNAblE ENTErprisE
Environmental objectives for 2009 Wihlborgs has met all its environmental objectives for 2009:
Wihlborgs reduced its electricity consumption (kWh/m2) by two per cent by comparison with 2008.
Wihlborgs reduced its heating consumption (kWh/m2) by two per cent by comparison with 2008.
We have produced proposals for projects that will result in innovations within renewable energy. The initiative will continue into 2010.
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Facts, wihlborgs
ThE EmissiONs’ DisTribuTiON 2009, iN TONNE pEr ACTiviTy ArEA.
CO2/ton/2009 co2/Kg/2009
180
76
163 160
140 120 100 80 60 40 20 0
co2-emission per person, 54 open plan workplaces of 460 m2
co2-emission per person, 25 workplaces in individual offices of 460 m2
ThE EmissiONs’ DisTribuTiON 2009, iN Kg pEr pErsON.
CO2/ton/2009
We began PCB clearance in 2009 and set clearance plans for 2010 and 2011.
The employees concerned were given environmental training.
We introduced what is referred to as Green IT in connection with WWF’s climate manifestation Earth Hour. We charted our printouts during 2009 with the objective of printing out less in 2010. A number of activities within Green IT are planned.
Wihlborgs’ top 50 properties in terms of the highest costs for fractions are mapped. We have compiled action plans for each an every one of them.
A long-term environmental objective from 2007 to 2009 was to reduce the consumption of electricity and heating (kWh/m2) by a total of 6%. The objective was achieved at the end of December 2009.
benchmarks for sustainable enterprise
To work more effectively with energy savings and energy statistics it is necessary to have a good energy programme. Wihlborgs’ energy programme illustrates energy consumption per property for which statistics are available for several years back in time. This statistic is one of several “must-haves” in order for us to produce an energy declaration for a property.
With the help of the energy programme we can deter- mine that carbon dioxide emissions for all of Wihlborgs’
properties were 9,391 tonne in the operating phase during 2009. The following is an illustration of how emissions were divided according to activity area in tonne/year in 2009.
The following is a further example based on our own areas at our head office. The office’s workplace area co- vers 460 m2 which translates into carbon dioxide emis- sions of 4,077 kg during 2009 during the operations stage. The office is open plan and has 54 workplaces.
Consequently the carbon dioxide emission per person is 76 kg. 76 kg corresponding to 3,2 miles driving by car with a petrol consumtion of 0,9 litre per mile. If the same area were to be divided into individual offices, it is estimated that there would be room for 25 workplaces and that emissions would amount to approximately 163 kg carbon dioxide per person. By working in an open plan office we thereby use our resources significantly better and we more than halve carbon dioxide emissions per person. See the illustration.
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hållbArT FörETAgANDEsusTAiNAblE ENTErprisE
Environmental objectives 2010 2011
. ENErgy EFFECTivisATiON – prOpErTiEs 1.1 Reduce energy consumption by x % per
year.
(1.1) Reducing total energy consumption by 3 %. (1.1) Reducing total energy consumption by 3 %.
2. rENEwAblE sOurCEs
2.1 Promote innovations and invest in energy from renewable sources.
(2.1) Projects which mean energy that is partly renewable at a property from our stock.
(2.1) Projects which mean energy that is partly renew- able at two properties from our stock.
3. phAsiNg OuT hAzArDOus mATEriAls 3.1 Clearing PCB.
3.2 Reporting clearing to the environmental authority.
(3.1) Clearing properties that were reported to the environmental authority in 2009.
(3.2) New properties reported for 2010.
(3.1) Clearing properties that were reported to the environmental authority in 2010.
(3.2) Final objective – all cleared.
4. TrAiNiNg/COmmuNiCATiON 4.1 Basic education
4.2 Further training 4.3 Inspiration lecture(s) 4.4 Communication
(4.4) New “environment group” with non-
“energy and environment employees” will meet twice a year led by an environment manager.
(4.2) Further training in environmental issues. 100 % of Wihlborgs’ employees shall attend further training during the year.
5. grEEN iT
5.1 Integrate IT and environmental issues.
5.2 Reduce total counters for printouts.
The number of printouts shall decrease by comparison with 2009.
The number of printouts shall decrease by comparison with 2010.
6. wAsTE prOCEssiNg
6.1 Increase the number of fractions that can be sorted.
(6.1) The costs of all properties identified last year shall decrease.
(6.1) Map and set an action plan for Wihlborgs’
top 50 properties regarding highest costs for fractions. (Note: this is not the same properties that was surveyed in 2009.) Environmental objectives, 200-20
6
ThE shArE
Wihlborgs’ shares were listed on the Stockholm Stock Exchange’s O list on 23 May 2005. Wihlborgs have been on the Nordic Mid Cap list since October 2006.
At the end of the year the share capital amounted to SEK 192m distributed across 38,428,364 shares and 37,464,014 remaining shares. Each share is entitled to one vote and each person entitled to vote at the annual general meeting may vote for the full number of shares held and represented by this person. All outstanding shares are entitled to an equal share in Wihlborgs’ profit.
The company has sold 1,250,000 of its own shares during 2009 from a holding of 2,214,350 shares.
The board has not exercised its authority to decide on a new issue of no more than 10 per cent of the re- maining shares.
market capitalisation and turnover
In 2009 there was a turnover of a total of 41,5 million shares which corresponds to 165,000 shares per day.
This corresponds to a turnover rate of 114 per cent of the average number of outstanding shares.
At the year end the price of a Wilhlborgs’ share was SEK 132.50 which, with all outstanding shares, corresponds to a share value of SEK 5,0 billion. The highest and lowest quotation for the Wihlborgs’ share in 2009 was SEK 140.00 and SEK 87.50 respectively. In 2009 the total return on the Wihlborgs share, including dividends of SEK 6.50 was 39.3 per cent.
Net worth in the balance sheet
The balance sheet’s assets and liabilities shall reflect the market value. Consequently, the net worth is calcula- ted on the basis of the balance sheet’s equity. In this context, it shall be observed that Wihlborgs’ actual tax is lower that the nominal tax rate of 26.3 per cent. This is because the sale of properties is usually done without a tax cost and that the group receives a tax credit through different measures. This is primarily through the use of maximum tax write-downs which result in tax discount- ing and the tax payment is deferred.
shArEhOlDErs’ EquiTy pEr shArE, DiFFErENT TAx rATEs
26.3 % 13 % 10 % 5 % 0 %
117.90 131.94 135.50 140.90 146.30
The share
Dividend and dividend policy
Wihlborgs’ dividend policy is based partly on transfer- ring 50 per cent of the current investment result, and partly 50 per cent of the realised result from property sales. Both were reduced by a standard tax rate of 26.3 per cent. The board’s dividend proposal for 2009 is SEK 6.75 (6.50). This corresponds to a yield of 5.1 per cent based on the share price at the end of the year.
If the AGM approves the board’s proposal for a divid- end of SEK 6.75 and the record day of 26 April, the dividend will be paid on 29 April 2010. The Wilhlborgs’
share will be traded including the dividend up to and including the day of the AGM, Wednesday 21 April 2010.
Ownership structure
The largest shareholders in Wihlborgs are Brinova Fastigheter AB and Sten K Johnson with company and family who own 10.3 and 6.8 per cent of the shares respectively.
At the end of 2009, the ten largest Swedish share- holders held 34.5 per cent of the shares and the number of shareholders amounted to 26,714, an increase with approximately 250 shareholders. The proportion of for- eign owners at the end of December amounted to 31.1 per cent, a decrease of 4.4 percentage units since the previous year end. Of the foreign owners, 26 per cent are from the USA, 23 per cent from Luxemburg, 16 per cent from Great Britain and 6 per cent from Norway.
Largest shareholders in Wihlborgs 31 december 2009
Number of shares thousands
tusental
Percentage of shares and capital, %
Brinova Fastigheter AB 3,867 10.3
Sten K Johnson via company and family 2,560 6.8
Länsförsäkringar Funds 1,347 3.6
Robur Funds 1,250 3.3
Handelsbanken Funds 1,058 2.8
Qviberg family 726 1.9
SEB Funds 674 1.8
Skandia Funds 566 1.5
Folksam Funds 460 1.2
Skandia Liv 425 1.1
Other shareholders reg. in Sweden 12,876 34.4
Shareholders reg. abroad 11,655 31.1
Total outstanding shares 37,464 100.0
Share buy-backs 964
Total registrered shares 38,428
Facts, wihlborgs
7
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7
Stock symbol : WIHL Listed since : 2005
Traded : OMX Nordic list Segment : Mid Cap
Sector : Financial and Real estate The share 2009
ThE shArE
The share/Key Figures 1 2009 2008 2007 2006 2005
Share price at year-end, SEK 132.50 100.00 115.75 142.75 96.00 Development of share price
during the year,% 32.50 -13.60 -18.90 48.70 Not appl.
Profit per share, SEK 13.43 -1.32 29.08 22.12 12.33
P/E ratio I, times 9.90 neg. 4.00 6.50 7.8
P/E ratio II, times 12.10 11.20 13.90 17.80 16.0
Shareholders equity per share, SEK 117.90 110.84 116.29 92.30 73.96
Dividend per share, SEK 6.75 6.50 6.25 5.50 3.50
Yield, % 5.10 6.50 5.40 3.90 3.60
Total return during the year, % 39.0 -8.20 -15.10 52.30 Not appl.
Number of shares at year-end 37,464 36,214 37,431 38,428 38,428 Average number of shares, thousand 36,266 37,208 38,304 38,428 38,125
1. Definitions page 88
shArE DEvElOpmENT 2008-2-30 – 200-0-29
0 525 1 050 1 575 2 100
0 45 90 135 180
Wihlborgs
SX4040 Real Estate PI
Kv 1 Kv 2 Kv 3 Kv 4 Kv 1
OMX Stockholm PI Turnover no. per week
Sek Turnover no, ’000 Sek
Wihlborgs SIX 30 Return Index
2005 2006 2007 2008 2009 2010
0 45 90 135 180
TOTAl yiElD iNCluDiNg rEiNvEsTED DiviDENDs.
2005-05-23 – 200-0-29
Swedish private individuals 23.4 %
International owners 31.1 % Insurance, pension AP-funds
5 %
Funds 16.8 % Swedish legal individuals 20.2 %
Associations organisations 2.5 %
Financial companies 1 %
shArEhOlDErs 2009-2-3
0 525 1 050 1 575 2 100
0 45 90 135 180
Wihlborgs
SX4040 Real Estate PI
Kv 1 Kv 2 Kv 3 Kv 4 Kv 1
OMX Stockholm PI Turnover no. per week
Sek Turnover no, ’000
8
ThE örEsuND rEgiON
The öresund region
In the autumn of 2008 there was a financial crisis at the same time as the world experienced a deep recession.
We are now seeing signs of recovery in several economies around the world, not least in China. Even in the US economy and in several European countries such as France and Germany there are signs of recovery. The majority of Swedish exports go to the OECD area of which Germany is the largest individual export market.
Sweden is also affected by the positive signals we see in the world. The severe fall in GDP has discontinued and, even in Sweden, the GDP increased as early as the second quarter of 2009 by comparison with the previous quarter but the GDP is still at a low level. During the same period, the GDP in Denmark fell by a further 2.6 per cent and did not experience a weak rise until the third quarter of 2009. In total for the whole of 2009 the GDP decreased in both Sweden and Denmark. There is an expectation of positive growth figures in both countries again in 2010. The fall in the Öresund region was less than in Sweden and Denmark as a whole. At the same time it is reckoned that economic growth in 2010 and 2011 will be greater in the Öresund region than in the countries as a whole. The economy is expected to grow more strongly on the Swedish side of the Öresund over the next few years. Approximately 1/4 of Sweden’s and Denmark’s total GDP is generated in the Öresund region.
The gross regional product in the Öresund region is no less than 30 per cent greater than the Stockholm area (Stockholm, Uppsala and Södermanland county).
Occupation
For a number of years, the growth in employment in the Öresund region was very strong but, in the autumn of 2008, there came the financial crisis and the global recession which resulted in significant decline. The greatest decline took place between the fourth quarter of 2008 and the end of the first half of 2009 but now the decline appears to have entered a quieter stage. During 2009 it is estimated that employment declined by more than 2 per cent in Skåne. The decrease was greatest in
the manufacturing industry. Towards the end of 2010 it is expected that employment will again increase in Skåne. In its December 2009 forecast AMS expects that the change in employment will be approximately 0 per cent for the whole of 2010 (refers to those employed with a place of work in the region).
Skåne is divided into three labour market regions – AMR Malmö (which includes Lund), AMR Kristian- stad and AMR Helsingborg. Because of regional differ- ences it is expected that the decline will be least in AMR Malmö and already during 2010 it is expected to see positive growth figures for AMR Malmö. Malmö which, during recent decades, has gone from being a traditional industrial city to becoming a modern services city with more diversified commerce, is the county’s economic motor. AMR Kristianstad is directed at the manufacturing industry as well as forestry and agriculture which means that the decrease in employ- ment is greater here and that recovery will take some time. AMR Helsingborg has a broad mix of industries but trade and logistics play a strong role. There are also many manufacturing industries. During 2009 employ- ment decreased as much as in AMR Kristianstad but, during 2010, there are expectations of a slight increase in AMR Helsingborg.
The öresund region
The Öresund Bridge and the proximity to Denmark have created positive effects on the labour market in Skåne which now softens the effects of the recession.
Even though employment has declined in the Copen- hagen region, the employment market in this area assumed a more “normal position” after the earlier overheating during which there was a considerable lack of manpower.
Several major infrastructure projects are in progress.
These will have a positive impact on growth in the Öresund region and include Citytunneln in Malmö, the expansion of the E6 motorway and the extension of the Metro in Copenhagen. Furthermore, major research
