ALM Equity AB (publ): Year-End Report 2023

Q4

Year-end Report

JANUARY- DECEMBER 2023

The quarter in brief

Events during the quarter

• In October, 5,462,076 convertibles were converted into ordinary shares in Aros Bostad issued to ALM Equity in connection with the sale of a project portfolio in 2022.
• In November, the subsidiary 2xA Entreprenad received ISO certifications for Quality, Environment and Work Environment, which shows that the company has well-established structures and a good basis for business development.
• In December, the bond of SEK 600 million with a maturity date of 31 December 2023 was repaid.
• The holding in Svenska Nyttobostäder was written down in the annual accounts with a non-cash flow effect of SEK 64 million due to increased yield required returns and tougher financing conditions. The capital share from Svenska Nyttobostäder also entails a negative effect of SEK 204 million as a result of devaluations in the property portfolio.
• Carnegie Investment Bank AB (publ) was appointed as the new liquidity guarantor for the company's shares on the Nasdaq First North Growth Market and has taken over as the company's Certified Adviser.

Events after the end of the quarter

• In January 2024, the associated company Aros Bostad announced its intention to merge with Besqab to form a new leading player together in housing development in Greater Stockholm and Uppsala. In the event of an accepted bid, ALM Equity's nominal shareholding will amount to around 15% in Aros Bostad, which will also change its name to Besqab.
• The Board proposes a cash dividend of SEK 8.40 (8.40) per preference share to be paid at SEK 2.10 (2.10) quarterly. Furthermore, it is proposed that no dividend be paid to ordinary shareholders.

Consolidated KPIs

	2023	2022	2023	2022
Summary	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Revenue, SEK m	639	1,176	2,386	6,902
Profit/loss for the period, SEK m	-453	-1,421	-2,708	-576
Return on equity (ordinary shares),%	-17	-17	-44	-10
Equity/assets ratio,%	39	50	39	50
Cash and cash equivalents, SEK m	444	1,073	444	1,073
Equity, SEK m	2,972	5,756	2,972	5,756
Balance sheet total, SEK m	7,662	11,518	7,662	11,518

	2023	2022	2023	2022
Key figures per share	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Adjusted net asset value1, per ordinary share, SEK	281	558	281	558
Stock market price on the balance sheet date, SEK	280	525	280	525
Earnings per ordinary share before dilution, SEK	-42.56	-134.76	-193.78	-78.63

1 Adjusted net asset value is based on actual net asset value adjusted for the estimated market value of ALM Equity's holdings, definition on page 26, and more information on estimated market value on page 5. Information about significant holdings can be found on pages 6-9.

2 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

We finished with a kick start

In 2023, we showed at ALM Equity that it is not the challenges that face us, but how we face them, that truly defines us.

In a historically tough time for the property and capital markets, we have not stood by. Instead, we have acted decisively and used our creativity, action and ability to adapt to open up new ways of value creation.

A historically deplorable year

We have to look back to the financial crisis in the 90s to find the corresponding challenging conditions for the construction and property market. Rapidly rising inflation, a record-breaking interest rate trend, over 50% reduction in housing starts and over 1,700 bankruptcies in the construction industry as a result. No one in the industry is unaffected and restructuring of operations and capital structures have been hot issues in boards and management groups.

ALM Equity and our holdings have also been affected by market developments. We are reporting a loss for the full year, where the last quarter amounted to SEK -453 million, which is largely explained by reduced asset values in Svenska Nyttobostäder.

Restructuring of Svenska Nyttobostäder

Svenska Nyttobostäder was created with a low complexity business model and a predictable financing structure. With a completely new situation on the capital market and interest rates that have significantly increased since the listing in 2020, conditions have changed rapidly and measures were required. During the first half of the year, we therefore worked actively with the company to create a new financing structure. Due to the changed conditions in the legal application of block leases, Svenska Nyttobostäder's original business model is being revised to meet these. Together with the company, we are continuing to evaluate structures for how the business should best develop going forward.

Reduced indebtedness

With the liquidity boost we received through the sale of shares in Klövern, we chose to resolve the maturing bond of SEK 600 million in full in December. It reduces our indebtedness and provides financial flexibility.

Bottom in sight but the turnaround will take time

With the Riksbank's latest announcement, we may now have reached the tipping point for interest rates. But it will take time before we see the effects on new construction and even if it has given better predictability, home buyers will continue to be cautious. We will see a continued strained situation in new construction and more consolidation in the industry at least 12-18 months ahead.

Contracting company on the move

Our contracting company 2xA Entreprenad is gearing up and in the last four months has come to the production-start of six external projects consisting of around 700 residential units for an order value of about SEK 1.2 billion. It continues to work successfully on the broader business and business development, where the ISO certifications obtained at the end of the year are proof of this.

Market for attractive deals

The record-breaking fall in the number of construction starts has driven down the prices of building rights. It creates opportunities for attractive deals. Such a deal is Aros Bostadsutveckling's bid for Besqab. There is a strong match and clear synergies here, which provide great development opportunities. The merger creates a company with both a greater geographic presence and a broader offering. Through the deal, ALM Equity becomes the owner of a significantly larger company with a building rights portfolio of more than 8,000 attractive building rights, and future potential for a continuing production volume of around 2,500 residential units per year in Greater Stockholm and Uppsala from 2025 onwards. I have previously claimed that crisis is the mother of innovation and it is this type of business that is made possible in times like these.

We are consolidating and loading up

We have spent several years of intensive work refining assets, implementing restructuring and building companies and now it is time for us to expand our portfolio. Albert Einstein said, "In the middle of difficulty lies opportunity". I therefore see a sea of opportunities in the market where we can find valuable assets at favourable prices. We do not act as passive asset managers; we see listing or spin-offs as opportunities to maximize value where we can contribute the most. Our core expertise lies in converting assets to much greater values than they originally had. While capital is available in the market, the necessary skills are often lacking. Together, we have the opportunity to create significant value.

Having spent most of 2023 clearing hurdles, the focus going forward will be consolidating our assets to come back with new structures and deals that create value for our shareholders. Now we are closing 2023 and kick-starting 2024!

Joakim Alm, CEO

It's now possible to find good investments that can be refined and create value for new assets or companies.

3 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

Comments on the market

Macro indicators

The year's last quarter was marked by a somewhat more stable macroeconomic climate and many inflation indicators continue to point downwards. Concerns about a deeper recession are starting to subside and there are many indications that the interest rate path may have reached its peak, provided that the inflation trend continues in the same direction going forward.

The Swedish Central Bank (Riksbank) has done its utmost to dampen inflationary pressure in Sweden, which has resulted in a number of interest rate increases in a short period. At the turn of the year, the base rate was 4.0%, and after the last monetary policy meeting at the beginning of February 2024, the Riksbank left the rate unchanged. The Riksbank has indicated that the base rate may be lowered in the first half of the year, provided that the outlook for inflation does not deteriorate. At the same time, there is still a total freeze on bond purchases from the Riksbank. Mortgage rates have begun to fall slightly, and the big banks' forecasts indicate that the reductions will gradually continue during 2024. At the same time, according to the CPI, the rate of inflation continued to fall during Q4. According to Statistics Sweden (SCB), the rolling twelvemonth CPI was 4.4% in December 2023, a decline from November when it was 5.8%. However, the rate of inflation increased in January 2024, with higher housing costs being the main reason

The property market

The current situation in the capital market, coupled with prevailing interest rates, has created significant challenges for property companies' financing possibilities and the availability of liquidity. Many companies have been forced to revaluate their financing strategy and have increasingly preferred bank loans as the primary source of financing. As a result of the macroeconomic situation, the banks in turn have stricter requirements on both interest coverage and the loan-to- value ratio. As a result, many companies have been forced to review their balance sheets and sometimes carry out major transactions to reduce indebtedness and increase liquidity.

During the year, the corporate bond market was restrained and showed increased selectivity, where credit ratings and industry have influenced interest. Several property companies bought back bonds instead of refinancing them on the bond market. The market strengthened at the start of 2024 and there are conditions for using the bond market as a source of financing.

Transaction volumes in 2023 were historically low as a consequence of the macroeconomic development in the Nordic region. According to Colliers, the transaction volume in the Nordic property market in 2023 fell to EUR 19.4 billion, which represents a decrease of 58% compared to 2022. Although transactions took place, there was a significant difference in the price expectations of buyers and sellers. At the same time, this created opportunities for other players to take their place, such as capital- strong property funds and private and foreign investors, where interest in the Swedish property market was significant during the year.

Preliminary statistics from SCB report that in the first three quarters of 2023 new construction of around 20,950 new residential apartments was started throughout the country, which is a fall of approximately 55% compared to the same period last year. At the same time, a cautious decline in prices on the housing market has been observed. According to Svensk Mäklarstatistik, the prices of residential apartments throughout the country during October to December declined by 1.6% compared to the previous three-month period. In Greater Stockholm, apartment prices declined by 0.8% during the same period, but seen on a twelve-month basis, prices have risen by 2.9%.

According to SCB, construction costs rose by 5.9% in December compared to the same period last year, which affects the new production of residential apartments throughout the country. At the same time, statistics from SCB point to a housing shortage in Stockholm. During Q3, there were 1.4 newly-moved Stockholmers for every new home, and housing sales rose by 4.5% during Q4 compared to the same three-month period last year.

Base rate and underlying inflation

%

11.0

9.0

7.0

5.0

3.0

1.0

-1.0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The base rate (per change from 2011)

Underlying inflation (CPIF, 12-month change)

Source: Riksbanken and SCB

4 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

Market valuation and adjusted net asset value

ALM Equity values its holdings quarterly. Unlisted group holdings are valued externally by PwC. Svenska Nyttobostäder AB (publ) and Aros Bostadsutveckling AB (publ) are listed companies where the values are based on the share prices as of the current balance sheet date. Klövern AB is valued based on a discounted cash flow model.

The market value is distributed among ALM Equity's shareholders as follows: SEK 1.2 billion to preference shareholders and SEK 3.1 billion to ordinary shareholders. This corresponds to an adjusted net asset value per ordinary share of SEK 281. The share price on 31 December 2023 was SEK 280 per ordinary share.

Since the previous quarter, ALM Equity's preferred shareholders have received a dividend corresponding to SEK 30 million and the adjusted net asset value has decreased by SEK 0.2 billion.

Comments on the changes in value

The valuation of the holding in Klövern was devalued by SEK 1.1 billion due to the sale of 51% of the holding to Nrep, and accounting-wise the write-down was SEK 0.8 billion. The remaining shares were valued after the transaction at fair value based on a discounted cash flow model. In Q4, the value of these remains at the level of the previous quarter.

The holdings in Aros Bostad include both shares and convertibles, which are valued at the market price as of the balance sheet date. The value includes values of convertibles regarding future deliveries of projects to Aros Bostad, which are therefore also excluded from ALM Småa Bostad. The share price at the end of Q4 SEK 32.50 (34.10) per ordinary share. The book value of ALM Equity's shares amounted to SEK 0.8 billion. Convertibles obtained in future handovers of building rights projects are estimated to increase the book value by SEK 0.1 billion upon full delivery based on the market price as of the balance sheet date.

The holding in Svenska Nyttobostäder has fallen by SEK 0.1 billion since the previous quarter due to the share price at the end of the period falling to SEK 14.10 (16.80). The assessment is that the current economic situation, changed market conditions and greater uncertainty around asset values affect the stock market. Above all, it is required returns, interest rates and capital structure that have major effects. However, it can be noted that the decline occurred with limited trading in the share. The book value amounted to SEK 1.8 billion, which differs from the current market value as of 31 December 2023, where ALM Equity's share was SEK 0.7 billion. The book value with an average price of SEK 35.67 per share was maintained by a discounted cash flow model for future operations, which corresponds to an average price of around SEK 36.21 per share

SEK bn	31/12/2023	30/09/2023	30/06/2023	31/03/2023	31/12/2022
ALM Småa Bostad	0.5	0.5	0.5	0.3	0.3
2xA Entreprenad	1.2	1.2	1.2	0.5	0.5
Svenska Nyttobostäder	0.7	0.8	1.3	1.0	1.4
Klövern	1.3	1.3	2.0	3.1	3.1
Aros Bostad	0.8	0.8	0.7	1.0	1.1
Other assets/liabilities	-0.2	-0.1	-0.6	0.8	0.8
Total market value	4.3	4.5	5.1	6.7	7.2

The values stated above are estimated market values to make the real values in ALM Equity's operations visible. The valuation of unlisted Group holdings is carried out quarterly by PwC. For definition see page 26.

The holding in ALM Småa Bostad was largely unchanged for the quarter to date. The value comes from ALM Equity's assessment that the strategic transactions in the Group free up room for the company to operate offensively.

The holding in 2xA Entreprenad was stable in Q4 in relation to the previous quarter. During the year, it has built up an external order book of around SEK 1.5 billion, which has stabilized the business, ensures cash flows and created forward-looking values.

More information and carrying amounts for each holding presented can be found on pages 6-9.

5 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

ALM Equity's business model and company portfolio

ALM Equity is an active company developer that creates value by acquiring and converting assets into new businesses and independent companies.

Investment and development takes place in companies within the property sector based on the needs of the future market. Through active ownership, ALM Equity develops and drives the initiatives that create maximum value in the longer term. Its strength is being able to quickly adapt its portfolio, act and adapt to changes and dare to challenge and find new paths.

Investments are made in business opportunities and assets with good growth potential where ALM Equity can add value and work for sustainable development. The investments are evaluated based on value, potential and risk and how well they complement the company's portfolio and the company's current strategy.

Creating value takes place through the packaging, financing and restructuring of assets and/or companies to build a stable platform and value base and become an independent business with the potential for stock market listing.

ALM Equity has an active ownership interest in its holdings to be part of the companies' development journey. Capital that is released in the event of ownership diversification, stock market listing or ongoing dividends, is reinvested in existing operations and new business opportunities.

Share of estimated market values1

SEK

4.3 bn

Klövern, SEK 1.3 bn

Svenska Nyttobostäder,­ SEK 0.7 bn Aros Bostad, SEK 0.8 bn

ALM Småa Bostad, SEK 0.5 bn 2xA Entreprenad, SEK 1.2 bn Parent company's assets, SEK -0.2 bn

Reporting structure

Reporting is based on the company portfolio and the larger holdings, which are active in the following areas in the property sector:

Property management

Property development

Contracting

Digital services

19 %		39 %		27 %
Share-		Share-		Share-
holding 2		holding		holding

Klövern		Svenska Nyttobostäder		Aros Bostad
Property management		Property management		Property development

100 %		80 %		50 %
Share-		Share-		Share-
holding		holding		holding

ALM Småa Bostad		2xA Entreprenad		Your Block
Property development		Contracting		Digital Services

1 For intra-Group unlisted holdings with adjusted net asset values, the market valuation is carried out by PwC, and definition can be found on page 26 with more information about assessed market value on page 5. For listed companies, the valuation is based on the market value at the closing date. Your Block is not market valued but is part of the parent company's assets.

2 ALM Equity sold 51% of the holding in Klövern and in the agreement Nrep agreed to subscribe for shares in new issues of SEK 1,000 million before other shareholders can maintain their holding. As a result, ALM Equity's share will be diluted to 16% after completion of the commitment. As of the end of year, SEK 480 million of the SEK 1,000 million had been issued.

6 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

Klövern is a property management company that develops, owns and manages rental accommodation for the private market in Stockholm and Mälardalen. Klövern offers space-efficient housing adapted for the sustainable lifestyle of the future.

Svenska Nyttobostäder is a listed property management company that owns and manages newly-produced residential properties with good transport links in the Stockholm area. Tenants are private individuals, authorities and companies.

Nominal holding: 19%1

Share of votes:19%1

Share of votes: 21%1

Book value of shares:

SEK 1.3 bn

Adjusted net asset value:

SEK 7.9 bn of which ALM Equity's share is SEK1.3 bn

Activity: Property management

Segment: Holdings in associate companies

1 See note 2 on page 6

Key figures	2023	2022	2023	2022
Oct-DecOct-DecJan-Dec	Jan-Dec
Number of units in management	468	420	468	420
Number of units in property portfolio	18,068	24,328	18,068	24,328
Property value, SEK m	7,157	8,482	7,157	8,482
Revenue from associated company, SEK m	-	-684	-252	-790
Unrealized changes in value1, SEK m	2	-	15	-

1. Klövern was reported as an associated company up to and including Q2 2023. The holding was then reclassified to "Financial fixed asset valued at fair value".

Nominal holding: 39%

Share of votes: 39%

Book value of shares: SEK 1.8 bn

Total market value: SEK 1.9 bn, of which ALM Equity's share is SEK 0.7 bn

Activity: Property management

Segment: Holdings in associate companies

Board members from

ALM Equity: Joakim Alm,

Key figures	2023	2022	2023	2022
Oct-DecOct-DecJan-Dec	Jan-Dec
Number of units in management	2,072	2,003	2,072	2,003
Number of units in the company's	5,370	5,870	5,370	5,870
portfolio1
Property value, SEK m1	8,282	12,495	8,282	12,495
Revenue from associated company,	-204	-24	-291	-9
SEK m

1. Includes all properties acquired but not occupied, where the property value for those not occupied is estimated at a calculated value upon completion. The property value also includes the value of unsold warehouses.

Board members from ALM Equity:

Joakim Alm

Company's largest owner:

Nrep

Units in property portfolio

18,068

In management 468 In production 800

Not production-started 16,800, of which 4,400 have a zoning plan in force.

The quarter in brief

• Klövern started construction on 236 residential units during the period, therefore a total of 800 units were construction started in 2023.
• The company carried out a directed issue of SEK 110 million to Nrep. Of the SEK 1,000 million that Nrep has committed to subscribe, before the other shareholders can maintain their shares, a total of SEK 480 million has been subscribed so far.
• The company devalued the properties in the annual accounts by SEK 1,793 million.

Events after the end of the quarter

• During January, construction started on two properties of around 160 rental units.

Fredrik Arpe1

Company's largest owner: ALM Equity via subsidiaries

Listed on:

Nasdaq First North Growth Market

Units in property portfolio

5,370

In management 2,072

In production 1,063 which will be handed over to the company upon completion.

Not production-started 2,084, all of which include a zoning plan in force.

In the sales process 151

The quarter in brief

• The company took possession of the Lignum property at Telefonplan in early October. The property was sold on the private market as tenant-owner apartments and includes 204 residential units. At the turn of the year, the company had sold 53 units and had an inventory worth SEK 365 million.
• The company devalued the investment properties in the annual accounts, by around SEK 460 million, of which about SEK 178 million affects ALM Equity's profit share.

Events after the end of the quarter

• There were no significant events after the period.

1 Fredrik Arpe is on leave from ALM Equity and is employed as acting CEO of Svenska Nyttobostäder.

7 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

Aros Bostad is a listed company that offers well-planned,high-quality homes that will stand the test of time. The geographical focus is on areas with good transport links in Greater Stockholm, Uppsala and Mälardalen.

ALM Småa Bostad is a company that focuses on larger urban development projects and offers a wide range of housing with services and commercial features in locations close to good transport links through four brands.

Nominal holding: 27%1

Share of votes: 27%1

Book value of shares:

SEK 0.81 bn

Total market value: SEK 2.8 bn, of which ALM Equity's share is SEK 0.8 bn2

Activity: Property development

Segment: Holdings in associate companies

1. See note under Aros Bostad holdings.
2. See comments about value on page 5.

Key figures	2023	2022	2023	2022
Oct-DecOct-DecJan-DecJan-Dec
Units in production	1,182	1,179	1,182	1,179
Building rights in the project portfolio	6,137	6,527	6,137	6,527
Booked project values, SEK m1	973	528	973	528
Revenue from associated company, SEK m	35	-4	35	-4

1 Booked project values refer to work in progress and project properties according to the segment report.

The quarter in brief

• In October, 5,462,076 convertibles were converted into ordinary shares in

Nominal holding: 100%	Key figures1	2023	2022	2023	2022
Adjusted net asset value:	Oct-DecOct-DecJan-DecJan-Dec2
SEK 0.5 bn	Revenue, SEK m	233	529	2,242	6,609
Activity: Property development
Operating profit/loss, SEK m	-182	-49	226	1,422
Segment: Group holdings
Operating margin,%	neg.	neg.	10	22
Units in building rights portfolio	Balance sheet total, SEK m	6,254	6,258	6,254	6,258
	Sales rate,%	99	100	99	100
	Development properties, SEK m	258	1,493	258	1,493
2,2411	Ongoing housing projects, SEK m	2,124	2,214	2,124	2,214

Board members from

ALM Equity:

Joakim Alm

Company's largest owner: ALM Equity via subsidiary

Listed on:

Nasdaq First North Growth Market

Units in building rights portfolio

6,137

In production 1,182

Completed building rights 745 In the planning process 4,210

Aros Bostad issued to ALM Equity in connection with the sale of a project

portfolio in 2022.

• The company took over two building rights projects from ALM Småa Bostad where

the purchase price was mainly paid through an offset issue of ordinary shares and

convertibles which are to be exchanged for ordinary shares no later than 2024.

• The company secured financing for the production of the entire rental portfolio

sold to Patrizia in 2022.

• During the quarter, the company started production on around 110 residential

units, thus starting production on around 560 units during the year.

Events after the end of the quarter

• On 31 January, Aros Bostad announced a takeover offer to the shareholders in Besqab AB, with the intention of forming a new, leading, housing developer together. If the bid goes through, ALM Equity will own around 15% in Aros Bostad, which will also change its name to Besqab.

Aros Bostad holdings

Completed delivery	Ordinary shares: 14,516,380
	Preference shares B: 2,263,161	27%
	Convertibles: 2,141,725	29%
Future deliveries	Convertibles: 3,284,562	33%

In production 639 Completed building rights 75 In the planning process 1,527

1 Of which 849 units have been sold to Aros Bostad but not yet occupied.

1. According to the segment reporting, where project results are recalculated in a successive model reflecting the value development based on accrued costs and sales.
2. Figures announced for the full year 2022 are adjusted as a result of the redistribution in the reporting of the segment.

The quarter in brief

• ALM Småa Bostad completed and handed over a property of 207 units to Svenska Nyttobostäder.
• Two building rights projects comprising around 65 residential units were handed over to Aros Bostad, thus 26 out of 34 projects have been handed over.
• The company has signed a letter of intent with Västervik municipality regarding land allocation and development.

Events after the end of the quarter

• There were no significant events after the period.

The convertibles mirror the ordinary shares and give the right to a specified number of ordinary shares upon call. After complete withdrawal, ALM Equity's share amounts to 33%, corresponding to a value based on the current market capitalization at the end of the quarter of SEK 0.8 billion.

8 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

2xA Entreprenad offers turnkey contracts for new properties, extensions or conversions, as well as other contracting services in specific aspects of property projects. A collaborative partner designing, optimizing, streamlining and executing both large and small projects.

Your Block is a mobile platform with the aim of simplifying communication and cooperation in companies, associations and housing. The platform offers cost-effective and user-friendly services for digital communities, the sharing economy and control of digital access in properties.

Nominal holding: 80%

Total market value: SEK 1.2 bn, of which ALM Equity's share is SEK 1.2 bn2

Activity: Property development

Segment: Holdings in associate companies

1 ALM Equity has priority to preference capital of SEK 1.3 billion before the transfer of value to ordinary shareholders takes place.

Units in production at the end of the quarter

1,500
1,200
900
600
300
0
Q4	Q1	Q2	Q3	Q4
2022	2023	2023	2023	2023

Detached houses

Apartment blocks

Key figures1	2023	2022	2023	2022
Oct-DecOct-DecJan-Dec	Jan-Dec
Revenue, SEK m	182	373	681	1,136
Operating profit/loss SEK m	23	31	45	77
Operating margin,%	13	8	7	7
Balance sheet total, SEK m	1,611	1,726	1,611	1,726
Order intake, SEK m	-	47	1,516	257
Order backlog, SEK m	1,589	523	1,589	523
Construction-started units, number	284	-	381	186
Completed units, number	425	181	557	650

1 The table shows the 2xA Group's total financial reporting, of which ALM Equity's share amounts to 80%.

The quarter in brief

• In November, 2xA Entreprenad received ISO certification standards ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (work environment). The certification is proof that the company works to constantly improve its operations, maintain high quality and be able to meet the demands of the outside world.
• 2xA Entreprenad production started two projects during the quarter totalling 282 units

Events after the end of the quarter

• 2xA Entreprenad has production started four projects after the end of the year, totalling 424 units.

Nominal holding: 50 %

Adjusted net asset value: The company is not listed

Activity: Digital services

Segment: Group holdings

Number of users

15,000
12,000
9,000
6,000
3,000
0
Q4	Q1	Q2	Q3	Q4
2022	2023	2023	2023	2023

Key figures	2023	2022	2023	2022
Oct-DecOct-DecJan-Dec	Jan-Dec
Number of users of the app	14,400	14,050	14,400	14,050
Number of users in properties with	1,875	1,670	1,875	1,670
digital locks
Number of doors with digital locks	575	555	575	555
Number of properties with digital locks	10	9	10	9

The quarter in brief

• Development is progressing, albeit at a slower pace as a result of lower activity on the new production market.

Events after the end of the quarter

• There were no significant events after the period.

9 | A L M EQ U I T Y A B

YE AR - END REPORT JANUARY- DECEMBER 2023

Financial information

Results for the quarter

The operating loss for Q4 was SEK 407 million (-1,422), while compre­ hensive income for the quarter was SEK -453 million (-1,421). The periods are not comparable due to large one-off items and a changed structure.

Earnings from associated companies totalled SEK -258 million for the quarter. The profit share from Aros Bostad contributed SEK 31 million and Svenska Nyttobostäder SEK -204 million. Furthermore, the holding in Svenska Nyttobostäder was affected by SEK -21 million attributable to share transactions and SEK -64 million in downward adjustment of the shares after impairment testing in the annual accounts. A new assessment regarding the handling of convertibles in Aros Bostad entailed a profit effect of SEK 31 million. The earnings effect refers to the reversal of previously unrealized changes in value as the convertibles are no longer reported at fair value. See further information on the accounting principle in note 1.

The holding in Klövern was classified from Q3 as financial fixed assets at fair value and an unrealized change in value of SEK 2 million affected Q4.

Results from January to December

The operating loss for the year was SEK 1,656 million (-712) while the total loss for the year was SEK 2,708 million (-576). The periods are not comparable due to large one-off items and a changed structure. The year's negative results are mainly due to projects being completed and transactions being carried out, as well as previously agreed transactions paid with shares entailing negative profit effects as a result of higher subscription prices than booked acquisition prices.

In total for the year, earnings from associated companies amounted to SEK -1,818 million. The holding in Aros Bostad accounts for SEK 35 million, including SEK -18 million for the sale of shares.

The holding in Svenska Nyttobostäder contributed a negative earnings effect of SEK -878 million, of which SEK -291 million came from the profit share, SEK -64 million from the write-down of share values and

SEK -523 million in earnings effects from lower acquisition prices in relation to subscription prices at the time of contract signing.

During the year, ALM Småa Bostad renegotiated the agreement with Svenska Nyttobostäder for the delivery of properties, which affected the gross profit/loss by SEK 365 million and the result from other short-term assets by SEK -835 million. More information about the transactions is on page 12 and in note 4.

The holding in Klövern resulted in a negative earnings effect of SEK -975 million, of which SEK -723 million refers to earnings effects in connection with the sale of shares to Nrep, including a write-down of the holding's reported value. The profit share from Klövern as an associated company totalled SEK -252 million for six months. The holding in Klövern was reclassified Q3 to financial fixed assets at fair value, which resulted in unrealized value changes of SEK 15 million. More information is on page 12 and in notes 3 and 4.

Assets and equity

Assets

As of 31 December 2023, ALM Equity had assets with a book value of SEK 7,662 million (11,518), where shares in associated companies accounted for SEK 2,683 million, SEK 1,838 million was attributed to Svenska Nyttobostäder and SEK 835 million to Aros Bostad. Other current assets of SEK 503 million refer to shares in Svenska Nyttobostäder attributable to partners in projects that are being delivered. ALM Equity

is not entitled to these, but must pass them on to the partners as soon as possible.

The remaining holding in Klövern was reclassified during the year from associated company to financial fixed asset at fair value. The valuation of the holding amounted to SEK 1,267 million and during Q4 resulted in an unrealized change in value of SEK 2 million, a total of SEK 15 million for the year. Development properties totalled SEK 258 million (1,478) and housing projects in progress amounted to SEK 1,860 million (1,831), where the

change is largely from Svenska Nyttobostäder taking over 13 building rights projects in 2023.

Inventory shares in tenant-owner and ownership rights are lower than the corresponding period last year at SEK 73 million (108).

Equity

Equity amounted to SEK 2,972 million (5,756) with an equity/assets ratio of 39% (50) where the change in the comparison period mainly came from the year's result which was negatively affected by the transactions with Svenska Nyttobostäder and the sale of the shares in Klövern.

Parts of the financing in ALM Småa Bostad takes place through investors making direct investments in the projects with preference capital, which amounted to of SEK 989 million (1,255). In the event of positive cash flows, preference capital has priority to dividends in the respective projects, and in the event of a deficit, repayments are reduced by the corresponding amount.

Liabilities

On the liabilities side, interest-bearing financing from credit institutions amounted to SEK 3,360 million (4,052), of which SEK 1,600 million refers to bonds taken out by the parent company. A bond of SEK 600 million was repaid during the quarter. Financing specifically linked to properties and projects is mainly in the form of short-term project financing during construction.

Financial position and cash flow

The Group's cash and cash equivalents at the end of the period amounted to SEK 444 million (1,073). The cash flow for Q4 was SEK -691 million (-273) and SEK -629 million (-881) for the year. Financing of properties and development projects mainly takes place through bank loans, construction credits, bonds, external contributions and preference capital based on prepared acquisition, operating and project calculations. Liquidity flow can vary significantly between quarters in connection with transactions.

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YE AR - END REPORT JANUARY- DECEMBER 2023