Backahill Annual Report 2023

BACKAHILL ANNUAL REPORT 2023

1998 - 2023

In 2023, Backahill celebrated its 25th anniversary, including the inauguration of its newly renovated office premises in Ängelholm.

Introduction

In 2023, the eight hotel villas belonging to Torekov Hotel were renovated.

We are a family-owned business that owns, develops and manages properties. Our business practices are driven by a strong entrepreneurial spirit. We have a clear ambition to be a positive force for change in the communities in which we operate, and many of our projects are carried out with a genuine passion – with our hearts.

The Company’s roots stretch deep down into the soil of north-west Skåne. The head office is located in Ängelholm, with local offices in Båstad and Stockholm. Today, we are active throughout Sweden as well as in the Nordic region, through our own companies and ownership interests in some of Sweden’s leading property companies.

We are a stable, long-term and committed player in the community, committed to contributing to communities in which people are happy to reside, work and live. Where others see derelict sites or run-down properties, we see new opportunities that we have the power to realise thanks to our solid financial foundation. Our strategic shareholding gives us room to manoeuvre.

We strive for long-term relationships and partnerships in all our relations with the outside world and our stakeholders. As a property owner and manager, we have great opportunity to make an impact and therefore we attach great importance to ensuring that everything we do takes people and the environment into consideration.

Our operations are divided into three business areas:

Property development. We acquire, develop and manage residential, commercial and community properties.

Destination development. We work towards the conscious and long-term development of destinations to contribute to a vibrant community and outstanding experiences.

Invest. We make long-term financial investments, are active and committed shareholders and have listed and unlisted holdings.

With the strength and energy to continue to develop

In 2023, we celebrated the Company’s 25th anniversary. These have been exciting years filled with business, developments and fun events. Taking stock of our first 25 years has been important for us, not least for our fantastic staff. Now we are looking ahead, and the start of the next 25 years began with work on our vision and values. We summarise these in the following sentence: “With courage, passion and perseverance, we turn visions into reality.” It’s a simple sentence that recognises what we do and how we do it. And this is also a time when a new generation is taking over the reins and putting its impact on the organisation. The succession has been undramatic as Sara Karlsson and Svante Paulsson have been involved in the Company for a long time and have both inherited their father’s strong entrepreneurial spirit. It is also important to mention our endeavour to further develop our skills with new employees who bring new, important knowledge and experience to Backahill.

Despite the turbulence in the world, it is very satisfying to be able to state that our companies and holdings continue to show a positive and stable development. They are performing well and remain on a strong financial foundation. This is thanks to our dedicated and competent staff, of whom I am very proud. Our long-term approach is an important part of our success. It is our guiding principle and a solid pillar for our owners, employees, customers and suppliers.

The uncertain geopolitical situation, particularly the war in Ukraine, has had a negative impact on our business in several ways. This is partly in the form of increased costs in our construction projects. Unfortunately, our hopes for a drop in purchase prices at the end of the year were dashed. For one thing, our Foodhills business has had a tough year as many producers have chosen to invest in other crops. It’s a frustrating situation where we see both high demand for our products and production capacity

that is not being used to its full potential. Then, the increased financial costs due to higher interest rates have affected our listed holdings. The share price of property companies has also shown a weak curve. In terms of value, our holdings are therefore less attractive, but we take a long-term view and continue to have strong confidence in our companies. However, the weak krona has not only had a negative impact for us – it has favoured our destinations, which continue to show reassuring growth.

In our Property Development business area, we completed our densification project Fågelsången 3 in central Ängelholm in 2023. The 69 flats were completed in February and our tenants moved in gradually between February and April. In addition, two major remodelling projects with long-term leases were completed during the year: the Police’s premises and Region Skåne’s new ambulance station.

In June, we gained access to the southern hospital area in Ängelholm, renamed by us as Kronodalen. Together with Peab, we are developing the new neighbourhood, which will include housing, various types of businesses and a campus area. The area is strategically located close to the city centre, transport links and nature. I am particularly pleased that higher education programmes have started ahead of schedule. It shows that our gut feeling that there is an interest and need for a campus in Ängelholm is right. Another interesting urban development project is ÄHLM Market, which opened in April. After several years of careful needs analyses and planning to bring something new to the city, we have created the concept of mixed activities to create a natural meeting place in central Ängelholm.

Several property acquisitions took place in 2023. In Båstad, we bought Evald 3 and Argus 6. Both are centrally located on Köpmansgatan and we see great development opportunities. In Ängelholm, we have acquired four properties from Brinova: Körsbärsträdet

5 and 6, Örnen 28 and Karlslund 1. Here too, we see exciting developments.

Looking at the Destination Development business area, we are very pleased that our GRAM Group sites are attractive destinations with continued high demand. In Båstad, we have started intensive work on upgrading Warmbadhuset, which houses restaurants Pepes Bodega and Papas and nightclubs Kristallen and Loft. Opposite, the Italian-inspired Mamas has replaced Sands Bakficka and the inaugural Champagne bottle was popped in April. Operations at Norrvikens trädgårdar and Ravinen cultural centre continue to develop positively with over 100,000 visitors annually. We are also pleased that Arenatorget, which connects Catena Arena with the padel hall and other activities, was completed during the year.

There is no change in terms of listed holdings in our Invest business area. We have spent a lot of time being an active owner in the board work of the five property companies. I am confident in these holdings, the companies have relatively strong ratios compared to many others. Again, our long-term strategy is paying off.

Within our unlisted companies, I would particularly like to mention Stefan Andersson and Backahill Food. Stefan is an astute business developer who is now working on finding operational synergies, securing production capacity and product development as well as finding new ways forward commercially.

Backahill’s financial position is good. We have a

strong Balance Sheet with a low debt ratio and a high equity ratio. It means we are ready to do new business when we want and need to. The Group reports total assets of SEK 13.4 billion (SEK 12.2 billion in 2022) with an equity ratio of 87 per cent (88 per cent in 2022). Net sales totalled SEK 837 million (SEK 636 million in 2022) and profit after financial items totalled SEK 1,281 million (SEK 738 million in 2022).

Looking ahead, I am proud of our strong ambition to continue to do even more for our home region. Every day we think about how we can make a difference. We have the power and energy to develop and that feels very positive.

CEO Lennart Mauritzson

Arenatorget completed

In 2023, Arenatorget, the 1,700 m2 arena linking the padel facility with Catena Arena and the two ice rinks, was completed. Arenatorget acts as a hub for the area. New tenants moved in: café Sjöholms Bröd & Korv and sports shop ReXhockey.

A more pleasant environment at Sand

Hotel Skansen’s elegant Sand restaurant has been upgraded to a new level. A new ceiling with better acoustics, a new music system and a large wine fridge gives the restaurant a more comfortable and luxurious environment. The kitchen has been given better work surfaces and new equipment, which is a big boost for the staff.

ÄHLM Market inaugurated

ÄHLM Market, dubbed the new living room for the people of Ängelholm, opened in April after several years of intensive work on the concept and setting up the 2,200 m2 premises. ÄHLM Market contributes to a more vibrant city centre and a more modern Ängelholm.

Hotel villas in Torekov refurbished

Torekov Hotel’s eight villas were completely renovated in a Scandinavian design with authentic materials and harmonious colours. With attractive, natural materials and stylish details, the rooms have been given a homely, cosy feel. Each room has a private terrace.

National handball match at Catena Arena

The foundations were laid during the year to attract new, exciting sporting events to Catena Arena in Ängelholm. The first event was a handball match in January 2024 where the Swedish national team faced Japan before the European Championship in Germany.

Warmbadhuset transformed

The complete renovation of Warmbadhuset just above Båstad harbour started in September. All roofs are being re-roofed and the facade is being refreshed. The building is being insulated and modernised with

renovated

The outdated property Argus 6 in the centre of Båstad was acquired and its external renovation was started.

optimised kitchen spaces. Pepes Bodega will be brighter and more spacious, with 200 more seats, and Loft nightclub will have a lavish interior with an international feel.

Ambulance station completed

In December, the key to the new ambulance station at Kungsgårdsleden was handed over to Region Skåne. The premises are fully adapted to the business with attractive learning facilities, large storage rooms and ample space for changing rooms and day rooms.

Strong interest in GroPro

During the year, protein flour was further processed into texturised products with promising results. The refined product is flavour-free, performs well with good water retention and is produced entirely without chemicals. Interest in the Company’s products is high.

Kronodalen’s structural plan established

In June, the southern hospital area was taken over. This is the site of Ängelholm’s brand new, sustainable neighbourhood – Kronodalen. Architectural firm Fojab designed a structural plan that was presented to the municipality in December.

THE YEAR IN FIGURES

837 (636)

Backahill’s turnover in SEK millions.

13.4 (12.2)

Total assets in SEK billions.

87% (88%)

Backahill’s equity/assets ratio in 2023.

75

Number of years that international tennis has been played in Båstad

1,281 (738)

Consolidated profit after financial items in SEK millions.

459 (453)

GRAM Group’s turnover for 2023 in SEK millions.

25

Number of years Backahill has existed

Number of m2 that Kronodalen covers 13

61,000

Backahill’s 25th anniversary

In 2023, Backahill celebrated its 25th anniversary. The years have been filled with opportunities and challenges, visions and developments, smart and sometimes tough decisions, fun activities and unexpected deals. Here are a few highlights of what has happened in Backahill’s 25-year history and during the anniversary year together with staff, customers and partners.

1998 - 2023

Backahill is formed

In 1998, the family Company is formed to bring together and structure Erik Paulsson’s private business and holdings. The property portfolio consists of one property, Förmannen 6 in Ängelholm.

Båstadtennis & Hotell AB is formed

In 2000, Båstadtennis & Hotell AB is formed with Backahill as its largest owner. The tennis centre and Hotel Skansen are purchased and the development of the tennis centre and hotel begins.

Strong period of growth

In the first decade of the 2000s, Backahill grows rapidly, acquiring many central properties in Ängelholm.

Fabege & Wihlborgs

Today’s Fabege was created in 2005 when the large company Wihlborgs-Fabege was split and the Stockholm part became Fabege.

Start of the Arenastad project

In 2008, Rögle’s home ice hockey rink is converted into the Lindab Arena. In cooperation with other shareholders in Arenabolaget, the investment in a completely new sports centre, ÄHLM Arenastad, which is under development, is launched.

Brinova & Catena

In 2012, Brinova is bought out of the stock exchange, giving Backahill completely different opportunities to act and the logistics property company Catena is created and listed on the stock exchange in 2013.

City centre development in Ängelholm

In 2012, the redevelopment of the Falken district along Storgatan in Ängelholm is completed. A new and larger shopping centre opens, one of several projects Backahill is undertaking to create vibrancy and activity in the city centre.

Re-opening of Norrvikens trädgårdar

In 2015, the newly renovated Villa Abelin opens and the first phase of the refurbishment of Norrvikens trädgårdar, purchased two years earlier, is completed. The development work has since continued in several phases.

In 2015, the new Hotel Riviera Strand is inaugurated after a major renovation and extension. Nobody saw what Erik saw, but it becomes an instant success.

Rönne Brygga

Rönne Brygga is completed in 2015. The centrally located site is now home to five apartment buildings, while the car parks are moved underground.

Purchase of Findus’ disused factory area in Bjuv

In 2017, the disused Findus factory in Bjuv is acquired. Through Foodhills, an initiative on circular food production with a focus on peas is launched.

HUS57 opens after renovation and extension

In 2018, Backahill’s conversion and extension of the former Paletten property is completed and House 57, a modern and spacious city hotel, opens.

Hotel Riviera Strand

Gamlegården is inaugurated

In 2022, Backahill’s founder Erik Paulsson’s vision of a modern shopping and meeting place in the centre of Båstad becomes a reality with the opening of Gamlegården.

Southern hospital area is purchased

In 2023, another step towards realising the plans for a campus in Ängelholm is taken when Backahill buys Hälsostaden AB’s part of the southern hospital area. Work is speeding up on the creation of a completely new district, Kronodalen, including university programmes and student accommodation.

ÄHLM Market

Ängelholm’s new meeting place, ÄHLM Market, opens. This longterm initiative aims to revitalise the city centre and attract more people to visit more often and stay longer.

ERIK PAULSSON ERIK PAULSSON - Superentreprenören

The book about Backahill’s founder, Erik Paulsson, is published in 2023.

A clear direction

Sara Karlsson and Svante Paulsson have spent the past year working with their employees to create a vision and core values that give the Company a clear path forward.

The work to develop Backahill’s organisation has dominated 2023 for owners Sara Karlsson and Svante Paulsson. In recent years, the Company has grown, both in terms of the number of properties and projects it owns in Båstad and Ängelholm, and in the number of employees who manage them.

“As we have grown, it has become clear that the image has become fragmented. This has meant a lot of work for many of our employees. As new projects accumulated, we felt that our organisation was too small. There was a need for a better structure. We have now taken several steps forward,” says Sara.

In the last two years, Backahill has hired ten people. Areas that have been strengthened include sustainability, business development, management, communication and marketing, and finance.

“We have expanded and honed our expertise in all areas. As a result, the organisation has become clearer. It becomes apparent when we do business and work on projects, which strengthens the whole Company,” says Svante.

When the Company carried out customer and tenant surveys, it emerged that there is the potential to improve customer reception and service. Quality and sustainability are now the focus.

“We have received indications of things that could be improved and that we have not kept up with developments in certain areas. We have taken a

positive approach to what hasn’t worked – we want the right person in the right place. Customer care is the number one priority. This has been a positive journey for everyone,” says Sara.

By getting more tenants to use Backahill’s website and with new systems in place, it is possible to systematise and gain a completely different control and overview than previously. This enables the tenant to get help quickly and easily.

“The surveys are our tenants’ feedback. We’re already doing well, but if we’re going to get to that last 10–20 per cent, we need to be even better. We have the potential to achieve this. I’m a big believer in working on the soft skills. We have said that we want to be the best landlords,” says Svante.

“Others, outside the Company, have learnt that we act very much from the heart.”

Backahill takes a very high level of responsibility in developing city centres and destinations, far beyond what is normally expected of a property owner. But the traditional, managerial role has not been a feature of Backahill in its 25 years of existence.

“We work with the things we are passionate about – local development and our local area. It gives us energy. And to do that, we need to create, structure and focus. And this is something that works over time. We are good at that and we intend to continue to be,” explains Svante.

The fact that Backahill is a committed property company that is happy to do more than what is required or expected is not without its downsides.

“Others, outside the Company, have learnt that we act very much from the heart. As a result, we receive a lot of requests for all sorts of things. But we have become much more open to saying no early on,” says Sara.

This clarity relates to what the Company’s core business consists of and what is categorised in the three business areas.

“We now have a framework for what we should primarily focus on and three clear business areas,” says Sara.

“Erik’s trademark was never to buy anything too expensive or ready-made, but to develop properties himself. We are good at developing, it is often a better deal than buying ready-made stocks. It takes longer but we are patient,” says Svante.

Although Sara and Svante took over the Company relatively recently (autumn 2022) from their father Erik, they have already had time to think about how best to prepare the next generation – Sara’s daughter and Svante’s three children – for the next succession.

“We want to handle it in the right way so that they don’t feel pressured,” says Sara.

“The difference between them and us is that we carry the history with us, we were in the middle of everything that Erik created,” says Svante.

“Everything from helping out on the farm at home to spending every holiday in Sälen has left its mark on us. We were happy to help out wherever needed rather than just skiing. We learnt a lot,” says Sara.

It is not only the next generation that will benefit from a well-structured and focused company, it is already needed today as Backahill continues to grow, and still includes some odd investments. But since

Lennart Mauritzson took on the role as CEO four years ago, our governance and direction have become clearer.

“I feel that the division of roles between the three of us and how we want to work is now settled. We don’t have to share the same views, but we agree on the way forward. That is a good feeling,” says Svante.

“It is important to have the right people around you. For example, we have found talented people to join the boards of our listed companies,” Sara continues.

“We need to have good, loyal people around us, and we do. I learn a lot from my board work and I like to work with people who are more experienced than I am,” says Svante.

Being able to let go of some of the board work,

“We need to have good, loyal people around us, and we do.”

especially in listed companies, is about trust in others, but also about the realisation that you cannot be everywhere, no matter how committed you are to your business.

“It’s also about courage, trusting others. Having confidence that things will get done. And some things are ingrained in us; for example, I can’t help picking up rubbish. Erik used to walk around with his rubbish bag at the Swedish Open in the mornings. But I think this sends positive signals that we care,” says Svante.

Svante Paulsson and Sara Karlsson conclude that 2023 was a fantastic year with a successful 25th anniversary.

There should always be two winners in every transaction.

Erik Paulsson

Strongly rooted values

Backahill’s four values show what we stand for, how we work and what we are capable of achieving.

A strong corporate culture is essential to achieving our goals as a property company. Our values form the foundation of our culture. In 2023, at Backahill we worked to define our values more clearly – for ourselves and for others. We want it to be easy to work for us and with us, to be clear about what we do and why we do it.

“Backahill is a large, stable company. We do a lot for the local community. This is the type of company I want to work for, because I myself come from a small town in Småland – Reftele in Gislaved municipality. I know we give so much back to the people who live here in Ängelholm. I felt that I would like to work here,” says Sandra Ernér, an economist who was recruited in April 2023.

“I felt that i would like to work here.”

Humility, courage, passion and perseverance

“I chose to apply to Backahill because everyone is so committed and they have a broad perspective on their property portfolio. We have an ambitious goal to become the best property owner and we have the resources to do so. It’s an inspiring environment,” says Dan Hagström, Director of Property Management, who joined Backahill in February 2023.

Our values show what we stand for, how we work and what we can achieve. They are summarised in the four core values of humility, courage, passion and perseverance. These values are rooted in our history and strong entrepreneurial spirit. They are closely linked to our vision: “With courage, passion and perseverance, we turn visions into reality.” Genuine,

The Vi Backahill brochure summarises the Company’s core beliefs, including its values, mission and vision.

well-grounded values stand the test of time and defeat the notion that a set of values is just a collection of vague platitudes that no one lives by anyway.

“If you think about the values word for word, that’s really what we’re working with here and they’re ingrained in the minds of many who have worked here for a long time. People are really passionate, they really care about their job, they’re brave and they dare,” says Dan.

We have chosen simple and honest words that reflect the essence of our company. They describe the Company culture and provide guidance on how we should act in everyday life. Together, over the past year, we have developed the meaning behind the

words, and what they really stand for and mean to us as employees.

“I think the values are good. They show us how we should behave and also how others should see us. You are constantly reminded of the words when you work here. They’re always on your mind. They are always present,” says Sandra.

Sandra Ernér and Dan Hagström in conversation with Lennart Mauritzson.

A driving force for change

Backahill is an entrepreneurial company. We are happy to do business, but above all we want to develop the community we are part of.

Backahill is an obvious, responsible social player in the property market. “We are passionate about making our community better.” Above all, we focus on Ängelholm and the Bjäre Peninsula.

Our strategy of dividing our activities into three business areas remains unchanged. Within Property development, we buy, develop and manage residential, commercial and community properties. In our Destination Development business area, we work towards the conscious and long-term development of destinations to contribute to a vibrant community and outstanding experiences. Within our third business area, Invest, we make long-term financial investments, act as active shareholders and have listed and unlisted holdings.

As our holdings are continuously growing, our organisation needs to be strengthened. There is a conscious effort to develop skills in a number of areas: business acumen, administration and finance, property management and development, sustainability, communication and marketing. The necessary basic skills mixed with drive and curiosity are qualities

“Our goal is to be considered the best property company in Ängelholm and Båstad.”

that we value. We are reviewing our ways of working, launching new processes to become more efficient and building on our strong values. Part of this involves becoming an even better property manager. Our goal is to be considered the best property company in Ängelholm and Båstad.

Backahill is still a complex business. Of course, the core business is property development, but today we also operate restaurants, hotels, meeting places and art centres. We produce peas and develop an alternative protein source. We are part-owners of an airport and are developing a large park with gardens. The list is long, so we are constantly simplifying and consolidating, classifying and categorising, and packaging our products and offers across our three business areas. Backahill Food is an example of how we want to rationalise our holdings and group them together to create synergies.

Our strategy involves being able to make more investments in certain well-chosen areas. We continue to believe in property digitalisation. Controlling, monitoring and optimising buildings is more relevant

than ever with periodically high and volatile energy prices, and in order to contribute to a lower carbon footprint. But we believe that the market for smart building solutions is still fragile and immature. We are happy to invest in innovative products and services that can benefit not only Backahill’s property portfolio but also our peripheral companies (Brinova, Catena, Diös, Fabege and Wihlborgs), but they need to provide us with concrete added value. In terms of sustainability, and perhaps more specifically in the field of energy, we also see great opportunities ahead to find interesting investment opportunities. We continue to find business opportunities in the direct ownership of properties, mainly in Ängelholm and Bjäre. But we are also interested in doing good business outside of our home market. For these deals to be successful, we envisage a stable partnership with stakeholders who know the local market well, where our role is that of co-owner, and we see development opportunities of land and properties in terms of potential, rather than existing portfolios to be managed. We are having interesting discussions on

a number of fronts and we have every reason to revisit them in the future.

One thing we are proud of and very keen on is standing out in terms of innovation. Property companies may not be known for their innovation, but we spend a lot of time and resources developing visions and urban development plans. Examples of this include the Kronodalen campus, our residence for the over-50s in Ängelholm and Båstad (passionate pensioners accommodation), the Arenastaden sports cluster, the Växtverket entrepreneurial hub and the ÄHLM Market meeting place.

We always look beyond the walls and roof of a property. A property is an enabler of something. We see the opportunities a great property can provide in terms of rewarding meetings, great socialising, thriving shops, dynamic workplaces, exciting dining experiences and other meaningful activities. This mindset permeates everything we do and all our companies.

CEO Lennart Mauritzson is looking forward to doing more development business.

Our business areas

Kronodalen is going to be a brand new neighbourhood in Ängelholm.

Backahill operates in three business areas: Property development, Destination development and Invest. With this division, we work to create vibrant communities and attractive destinations with the help of a stable financial base in our shareholdings.

Property development

Sollyckan, our first residence for the over-50s in Båstad, is scheduled to start construction in autumn 2024.

A passion for community development

As committed community builders, we endeavour to promote positive urban development, especially in Ängelholm and Båstad.

Within our Property development business area, we buy, develop and manage residential, commercial and community properties. Our main focus is on our home markets in Ängelholm and on the Bjäre Peninsula, but we also operate in other parts of Sweden. For example, we are building homes in Nacka in Stockholm. Our property portfolio is growing and by the end of 2023 we will have a total of 680 flats and 122,000 m² of premises.

Urban development is a key concept for Backahill. We are constantly looking at how we can add value to a society so that it functions well. We develop long-term plans and visions that we want to realise to create sustainable and pleasant urban environments where people can live, work and socialise.

A clear measure of our courage, passion and perseverance is the investment in Ängelholm’s southern hospital area, which we have named Kronodalen. With the acquisition of 61,000 m2 of land and buildings, we have started one of the largest projects in Backahill’s history. We gained access to the site in June 2023 and our Project Development Manager Dag Thulin describes our vision in more detail on page 44.

To create a vibrant city centre and an active community, we focus on multiple areas. Firstly, we contribute by developing diverse and affordable housing in the city centre to attract different groups of people and bring life to the centre. An example of this is Fågelsången 3, where central Ängelholm gained 69 modern rental flats and a business premises. The property was ready for moving in in the spring of 2023. Where we see opportunities for densification,

“We are constantly looking at how we can add value to a society so that it functions well.”

we carry out redevelopment so that more people can live close to the services available in the city centre. An example of this is the Kv Falken property at Storgatan 51 in Ängelholm, which we have rebuilt and extended to provide four rental flats that were completed in 2023. We know that competition to retain tenants is fierce, which is why we have strengthened our organisation. You can read more about this on page 43.

The variety of housing types is fundamental to making everyone feel welcome. For several years, we have been developing our concept of housing for the older, active segment of the population. The Sollyckan project is what we call an over-50s residence, a form of comfortable, central and social flats in Båstad. We are planning a similar project in Ängelholm in Kv Betvågen together with Melin Fastigheter.

For us, urban development also means enabling conditions for business and work in the city centre. Our contribution here is to offer functionally designed properties that can accommodate both office and retail spaces. We manage a large number of premises on Storgatan in Ängelholm, and Gamlegården in Båstad offers five retail premises.

In some cases, we combine attractive housing with well-located commercial premises. In 2023, we bought two centrally located properties in Båstad,

The Kronodalen campus area in Ängelholm will feature many green spaces and beautiful parks.

Sollyckan offers a varied and attractive architecture suitable for a small town such as Båstad.

The new facade of Argus 6 will provide a much-needed facelift for this centrally located property in

Båstad.

Backahill gives life in a fitting style to Evald 3 in Båstad.

Gamlegården, which was completed in 2022, is located opposite Evald 3.

Lots of projects boost Båstad

Backahill, together with Båstadtennis & Hotell AB, has shifted into gear in Båstad.

The number of properties in Båstad is growing for Backahill and many construction projects were underway in 2023. In the centre of Båstad, Argus 6 and Evald 3 were acquired, both on Köpmansgatan, the main street. Both buildings need a major upgrade in terms of standard and quality.

“The green building, Evald 3, has fallen into a state of disrepair and is in such a bad condition that we have to demolish it. But we will construct a building, keeping the spirit of the period and restore, among other things, the dormer windows facing the street. We’re also preserving the retail premises on the ground floor facing Köpmansgatan, while creating around ten rental flats upstairs and in the other two houses in the inner courtyard,” says Fredrik Henrysson, who is responsible for Properties & Projects Bjäre.

Although Argus 6 will not be demolished, the outdated building, which until recently used oil as its heating source, is in need of a complete renovation.

“The property, which we are going to fully renovate, is really in the middle of the village and the whole neighbourhood will receive a huge boost.”

Further down towards Malen but still on the thoroughfare, Hinden 9 was completed as staff accommodation for GRAM Group for the 2023 summer season.

At the wholly owned Torekov Hotel, the eight villas have been renovated and given a completely new look inside. The renovation will continue in spring 2024 with a change of facade.

At Norrvikens trädgårdar, a project was completed during the year that raised the neglected car park to a level on a par with the garden itself in terms of quality.

“

At

Pepes, we open the doors facing the sea which gives a nice line of sight through the building.”

Båstadtennis & Hotell AB, in which Backahill is the largest owner with 43 per cent, has also been impacted by several major renovation projects in 2023. The restaurants Mamas, Papas and Pepes Bodega and the nightclubs Kristallen and Loft have been completely rebuilt and renovated.

“Since it is a former warm bathhouse and is q-labelled

(a building of particular cultural-historical value that must not be altered), it has been a long journey with complex construction. But it’s going to be amazing. At Pepes, we open the doors facing the sea which gives a nice line of sight through the building. We finished Mamas in a record time of three weeks last spring.”

Hotel Skansen got a completely new and more efficient kitchen and loading bay, Restaurant Sand had its ceiling and music system replaced, the conservatory got new, more efficient lighting and the Rooftop Spa got another terrace.

“We planned throughout 2023 and on 1 December we started work. The hotel closed and we replaced the kitchen. It was completed on 26 January.”

A major construction project also began at the Hotel Riviera Strand, with two new outdoor pools surrounded by a pergola being installed between the pool house and the main building.

“We’ve really kept busy in Båstad in 2023 and we’re continuing in 2024, it’s exciting,” says Fredrik.

Fredrik Henrysson is busy project managing construction projects in Båstad.

Argus 6 and Evald 3. We are modernising both properties, with retail space on the ground floor and residential units in the other parts of the buildings. You can read more about these projects on pages 35 and 44.

A third aspect that makes it more attractive to live and work in the city centre is the existence of a well-functioning infrastructure with good access to public transport, walking and cycling routes, but also to a wide range of pharmacies, grocery chains, hairdressers, gyms, restaurants and shops. When Åhléns decided to close down its department store in Ängelholm, we saw an opportunity to create something entirely unique. After trying out different concepts with the main goal of complementing the offer in Ängelholm, we started the major redevel-

opment in 2022. The inauguration took place at Easter 2023. With hindsight, our ambition to create a popular meeting place has been a success. ÄHLM Market attracts lots of people, not least to the popular restaurants Eld & Vin and Roots of Happiness. Initially, we are running some activities ourselves. You can read more about ÄHLM Market on page 38.

Proximity to public resources such as libraries, schools, health centres and other community services is also important for the everyday functioning of the city’s residents. In addition to residential and commercial premises, our portfolio also includes community properties. These include the premises we have prepared for the Police and Region Skåne, both of which are tenants of Backahill. In September 2023, the police were able to move back to newly renovated

Increasingly large property portfolio

Backahill’s portfolio of properties in its home markets of Båstad and Ängelholm increased by more than 18 per cent in 2023.

Backahill has acquired a number of properties in both Ängelholm and Båstad in 2023. These include Körsbärsträdet 5 and 6, Örnen 28 and Karlslund 1 in Ängelholm, and Evald 3 and Argus 6 in central Båstad.

“We now have more than 680 flats in our portfolio, so we have added around 106 flats in the last year, which is a substantial increase. In addition to flats, we also have 122,000 m2 of commercial premises that we manage. This is satisfactory growth,” says Jerry Zander, Property Director.

To help him, Jerry has been joined by Dan Hagström, the new Director of Property Management (see page 43). This gives the management team a better chance to take stock of properties, develop maintenance plans and look ahead.

“Among other things, we have decided on a major three-year plan to overhaul the roofs, windows and façades of all our buildings from 2023 onwards. We have also started work on installing or replacing the control and regulation equipment for the buildings’ heating and ventilation systems in order to reduce operating costs while at the same time enabling us to receive alarms in case of system failures.”

A number of construction projects involving densification, renovation and new construction took place during the year, which you can read more about elsewhere in the Annual Report. Backahill sees a continued good influx of tenants to the Company’s rental housing.

“We have good occupancy rates, thanks in part to the central locations of our rental properties. A lot of people want to live in the city centre and we do our utmost to keep them happy – we know that all property owners in Ängelholm have quite a high turnover of tenants.

Region Skåne’s ambulance station in Ängelholm now has a strategically convenient location that makes it easier to respond to calls in the region.

Property manager Jerry Zander is delighted with Backahill’s growing property portfolio.

Ängelholm’s new meeting place

Since April 2023, you can feel at home at ÄHLM Market, in the centre of Ängelholm city.

ÄHLM Market, dubbed the new communal living room for the people of Ängelholm, opened in April 2023 after several years of intensive work on the concept and setting up the 2,200 m2 premises. Sara Karlsson and Svante Paulsson cut the ribbon, the Ängelholm Marching Band played as they marched along Storgatan and the Dansfabriken youth put on a spirited show at the official inauguration.

“Through ÄHLM Market, we are contributing to a more vibrant city centre and a more modern Ängelholm,” says Louise Johansson, site manager for ÄHLM Market.

The idea behind ÄHLM Market was to create more reasons for people to come to the city centre more often and stay longer. A clear intention behind the concept was to complement the already great range of shops.

“ It takes an incredible amount of courage and passion, but especially perseverance to do this.”

“We have had to experiment with what attracts people, the type of events, the range of shops and the type of food that the people of Ängelholm want.”

There is a shop selling interior decoration and kitchenware, a stage, boules and a shuffleboard court, parcel delivery, a conference room and restaurants.

“We have found the right range in the store, and it is clearly the things that Åhléns sold a lot of – kitchen and gift items, glasses and frying pans, scented candles, etc. –that sell really well. Our collaborations with other businesses in the city, for example when we have a fashion show, attract a lot of people, as does the Eld & Vin restaurant when it shows Rögle’s matches on the big screen.”

Backahill has been careful to ensure that Åhléns’ former premises in the centre of Storgatan in Ängelholm have not been left empty while ÄHLM Market was being

ÄHLM Market’s site manager Louise Johansson is constantly looking for new partnerships and ways to make Ängelholm city centre flourish.

built. Roots of Happiness fronted the space with their nutritious salads and happy smiles during construction.

“ÄHLM Market is such a clear example of our values. It takes an incredible amount of courage and passion, but especially perseverance to do this. We have to be proud of the investment we have made, we are really thinking long-term here,” says Louise.

The range of Butiken (top) is popular, as is the Eld & Vins restaurant (bottom).

“ Our property portfolio is growing and by the end of 2023 we will have a total of 680 flats and 122,000 m 2 of premises.”

In the spring of 2023, tenants moved into Fågelsången 3 in central Ängelholm.

and modernised premises on Svenskehögsgatan, and in December Region Skåne received the keys to the new ambulance station at Kungsgårdsleden.

Another important aspect of good urban development is that the environment includes parks, squares and green spaces that are not only attractive but also promote public health and can be used for recreation. The Kronodalen district, which will be a sustainable urban district with fine elements of park environments and green spaces, is again worth mentioning here.

Finally, a rich cultural offer and regular events help create a vibrant city and attracts residents and visitors alike. We have a clear role to play here, not least with our other business area, Destination Development, but also in the form of the properties we construct. In Båstad, our property holdings are very much centred on culture, entertainment and events. In 2023, major investments in hotel and restaurant operations were initiated via Båstadtennis & Hotell AB, which we own 43 per cent of. We can also report that Hinden 6 was completed for the 2023 summer season – a property that now serves as accommodation for staff at our various hotels and restaurants in Båstad.

By balancing and integrating all these factors, we can create vibrant city centres that are attractive and sustainable for all residents and visitors.

Örnen 28 in Ängelholm was also included in the acquisition from Brinova.

Karlslund 1 is one of several properties in Ängelholm that was purchased by Brinova in 2023.

A prime example of urban densification is Kv Falken in Ängelholm, where Backahill now offers four new rental flats.

More active management of our properties

A clear maintenance plan provides a secure platform for property management and creates order.

Backahill has its own technical management team with five property technicians in Ängelholm. In Båstad, property management is outsourced. The main task of the technical management team is to carry out general property maintenance, deal with fault reports, but it can also carry out minor adaptations to premises, renovations and conversions.

“There are several advantages to having our own property technicians. It’s quicker, usually cheaper and, above all, our tenants feel a presence and greater affinity with Backahill. We get a stronger relationship with them and they feel that we care. That’s good customer care,” says Dan Hagström, Director of Property Management.

Dan’s role was newly created in 2023. As Backahill’s own property portfolio in Ängelholm and Båstad expanded, there was a need to strengthen the organisation. His task is to structure and plan maintenance for existing properties in Ängelholm and Båstad. Dan has drawn up clear annual plans for what the department will work on. This includes everything from the building envelope to technology, structures and internal surfaces.

“We

are truly turning visions into reality.”

“I always think you should start by ensuring that you have a watertight hat and coat, in other words, start with the building envelope, before looking at what is needed inside. Then we have a journey to undertake to modernise the technology in the buildings.” We currently have a mix of older and newer properties, so the need for modernisation varies.

In 2023, numerous projects included in the maintenance plan have been launched. Window replacements, ventilation system upgrades, repainting and roof replacements are just some of the items included. The annual plan sets out a clear order of priority.

“For Argus 6 in Båstad, which we acquired in 2023, we are performing a major upgrade. We are truly turning visions into reality. Backahill takes a slightly broader view.

Dan Hagström, Director of Property Management, is keen to ensure that Backahill’s properties function well, both inside and out.

Looking to the future

Urban development projects and a residence for the over-50s both Ängelholm and Båstad will keep Backahill busy for many years to come.

Backahill is a long-term, committed social actor. In recent years, we have taken on very big challenges that we are working to realise to make society a little better for a lot of people in a region we love.

The biggest project of all is to build a brand new district that we call Kronodalen in Ängelholm. In June 2023, the southern hospital area was taken over. The architectural firm Fojab was commissioned to design a structural plan and a first draft was presented to the municipality in December.

“Together with Ängelholmshem, which owns 40,000 m2 next to our property, we have established a vision for the whole area about what Kronodalen should contain. We will have a high level of ambition when it comes to sustainability, for example we voluntarily run a sustainability programme. We want a 20-metre-wide, car-free city centre walkway and have placed a mobility house at each end to reduce car traffic in the area,” says Dag Thulin, Project Development Manager.

Kronodalen contains a campus linked to Halmstad University, but also up to a thousand dwellings of various kinds and commercial premises with space for, for example, a convenience store, restaurants and cafés, a hairdressing salon and a library. A beautifully meandering pedestrian and cycle bridge will connect the area to the neighbouring Hälsostaden, i.e. the northern hospital area.

“It will be a mixed urban and park environment with a lot of green space. The idea is also to preserve some

Kronodalen. Situationsplan. 2024.02.16

buildings and to utilise much of the brick from existing buildings on the site when they are demolished,” says Dag.

The campus will include higher education programmes and all post-secondary education, such as SFI, Komvux and higher vocational education (YH). Two programmes have already started, a leadership and coaching programme at university level and a two-year bank officer training programme at YH level.

“We have also started a jointly owned property owner company with Peab – Kronodalen Utveckling AB – which will develop the new district.”

Another urban development project focuses on Båstad and the regeneration of the city centre. In 2023, two centrally located properties were acquired. Opposite Gamlegården on Köpmansgatan is Evald 3.

“The property is very run down. The idea is to recreate the beautiful historic character but in a new building with premises facing Köpmansgatan and housing above and around the courtyard.”

Argus 6 is located right across the street where the future residence for the over-50s, Sollyckan, will be built. The property will be given a new façade, new windows and balconies and a new roof.

Sollyckan is scheduled to start construction after summer 2024. Expressions of interest have been received, and the estate agent and building contractor have both been appointed to complete the project. Thirty flats will be constructed and the building is expected to be ready

Kronodalen will include student accommodation, ordinary housing, shops and learning facilities.

In Ängelholm, there are plans for a residence for the over-50s with a glazed courtyard surrounded by apartments.

“We have also started a jointly owned property owner company with Peab – Kronodalen Utveckling AB – which will develop the new district.”

for occupation by summer 2026.

“We would like to see people who are active in the municipality and who contribute to the development of the city move in. We believe that there are quite a few people in Båstad who may feel that a large detached house with a garden is a little too burdensome to maintain and want to move into the city centre.”

There are also plans for a residence for the over-50s in Ängelholm. Together with Melin Fastigheter, Backahill is planning to double the size of the accommodation in Kv Betvågen. The concept is the same as for Sollyckan, with housing around a glazed courtyard, but with four floors compared to three in Båstad. The zoning work is ongoing.

“The district is divided into two parts. In addition to the ‘passionate pensioners’ residence, there is a block of flats that will house smaller flats, probably for rent,” explains Dag.

Skala 1:1500

There are plans to build more flats at Körsbärsträdet 5 and 6 in Ängelholm.

Dag Thulin, Project Development Manager, looks out over the southern hospital area that will be transformed into Ängelholm’s new district.

Destination development

How we create attractive travel destinations

With purposeful and beautiful properties as our base, we work to develop Båstad and the Bjäre Peninsula and Ängelholm as attractive tourist destinations.

In our Destination Development business area, we use three concepts as keys to our success in making Båstad/Bjäre and Ängelholm attractive destinations: branding, experiences and collaboration.

Marketing the destination effectively is key to attracting visitors and creating a positive and strong association with the destination brand. Our work here involves communicating the destination’s unique selling points, and promoting appealing events and unforgettable experiences.

Developing and improving existing attractions and creating new experiences is crucial to retaining visitors and attracting new visitors. This can include anything from sporting events and entertainment activities to cultural attractions, nature experiences and gastronomic excursions.

Our destination development work requires close collaboration between our own companies, other stakeholders such as municipalities, other companies and non-profit organisations. By working together, it is possible to create a coherent and attractive image of the destination. It also offers opportunities to coordinate resources and efforts to maximise results and long-term sustainability.

The properties we develop and manage form the solid foundation of our destination development work. Backahill is the largest owner of Båstadtennis & Hotell AB (BTHAB) with 43 per cent. The property holdings consist of the two hotel and conference facilities Hotel Skansen and Hotel Riviera Strand, the tennis facility with the centre court and other tennis courts and the adjacent buildings, such as the

“ Developing and improving existing attractions and creating new experiences is crucial to retaining visitors and attracting new visitors.”

congress hall and the cold bathhouse. Furthermore, the property portfolio within BTHAB also includes Warmbadhuset, which houses Pepes Bodega, Papas, Kristallen and Loft. In addition to these properties Backahill fully owns Torekov Hotel, a business that collaborates closely with the other hotels. Two important companies also owned by Backahill are operating company GRAM Group, which markets the hotels and restaurants, and Sport & Evenemang Holding AB (S&E), which is responsible for developing events.

Two other important properties with high appeal in our Båstad-affiliated holdings are the park Norrvikens trädgårdar and Ravinen cultural centre.

GRAM Group, which is responsible for the marketing and coordination of the hotels and restaurants, notes another peak year with high demand and good growth, resulting in net sales of approximately SEK 459 million (SEK 453 million in 2022).

To continue to develop our facilities as attractive destinations that people choose to visit, we maintain a high pace of renovation and investment in our

Experiencing Norrvikens trädgårdar in winter has been a successful venture.

properties. Some of them affected operations, but they were offset by a strong level of bookings. Hotel Skansen’s kitchen for Restaurant Sand was rebuilt and completely renovated. The lighting system has been replaced to save energy. An additional terrace, called Nest, was built as part of the hotel’s rooftop spa. Warmbadhuset completely closed its restaurants Papas and Pepes Bodega and nightclubs Loft and Kristallen in the autumn and the building is being fully renovated to be ready for the summer season 2024. Hotel Riviera Strand started the construction of two long-awaited outdoor pools with accompanying pergola and bar. These will also be ready by summer 2024. Torekov Hotel refurbished the eight villas with completely new furnishings for the rooms and bathrooms. Sands Bakficka changed its operator to Warmbadhuset. The building was upgraded in a short

time to be ready for summer 2023 and now houses Italian-inspired restaurant Mamas.

The town of Båstad and much of our business there is closely linked to tennis and the Nordea Open. The two tennis tournaments, which are part of the ATP and WTA tours, are popular and the international tennis competition Swedish Open celebrated its 75th anniversary in Båstad. The events were well attended with around 77,000 visitors. Both competitions received the prestigious “Tournament of the Year” award for 2023 from the players on the respective tours, which is a nice recognition of our work as organisers – Arena Båstad organises the competitions and is part of the BTHAB Group.

In addition to tennis, several events were developed and organised in 2023. The driving force is the destination company S&E (see page 55) which,

The Nordea Open tennis competition, with both ATP and WTA tournaments, is crucial to Båstad’s role as an active summer resort.

Hotel Riviera Strand is completing its offer with two outdoor pools to be completed in 2024.

Ravinen cultural centre, located next to Norrvikens trädgårdar, is a meeting place for art and cultural experiences.

The Loft nightclub in Båstad will attract an international crowd with its luxurious and sumptuous interior.

The environment at the newly renovated Sand restaurant at

has been upgraded.

Hotel Skansen

Rooftop, Hotel Skansen’s rooftop spa, has a new terrace and new lighting.

in collaboration with the hotels, restaurants and Norrvikens trädgårdar, creates events for a range of target groups.

We continue to develop Norrvikens trädgårdar and Ravinen. The goal is to create a beacon of light that radiates far beyond national borders when it comes to beautiful and inspiring park and garden environments with accompanying events. In 2023, a two-year project was completed at Norrvikens trädgårdar, raising the standard of the previously neglected car park to the same level of quality as the garden itself. The car park is now as attractive and welcoming as the blossoming garden.

Moving on to Ängelholm, we have completed the next stage of the Arenastaden vision via our partowned company Arenabolaget, which brings together sports enthusiasts from Ängelholm and the surrounding area. Catena Arena, the practice halls and a padel hall are united thanks to Arenatorg’s 1,700 m2 space, which was completed in 2023. New tenants include Sjöholms Bröd & Korv café, ReXhockey’s sports shop, Engelholms Fysioterapi and Muskelknutan massage parlour located in the padel hall’s premises. Backahill continues to discuss the further development of the area with other stakeholders, such as the municipality and other partners in Arenabolaget. The vision includes a sports centre, football pitch, school and housing.

“ The goal is to create a beacon of light that radiates far beyond national borders.”

The harbour and its charming huts are an important part in Båstad’s attractiveness.

Installation at Norrvikens trädgårdar 2023.

International handball match between Sweden and Japan at Catena Arena.

BotaniCar car exhibition at Norrvikens trädgårdar in Båstad.

Sights set on bigger events

By attracting larger events, the target group for the Bjäre Peninsula and Ängelholm can be broadened.

Attracting, planning and organising events on the Bjäre Peninsula and in Ängelholm is the main task of the destination company Sport & Events (S&E), which is owned by Backahill.

The Company’s aim is to create economic leverage for other parts of the Destination Development business area. The overall aim is to promote Ängelholm and Båstad/Bjäre as attractive places all year round through regular events. S&E promotes events in the fields of active lifestyle, boat & sea, culture & music and food tourism.

In 2023, S&E has worked to strengthen the positioning of the destinations, while integrating the Company’s operations and plans with the destinations and stakeholders within the Backahill sphere, such as GRAM Group and its hotel and restaurant operations, Norrvikens trädgårdar and Arenabolaget and Catena Arena.

“We organised a couple of events and, at the same time, we set out the direction for our work going forward. Working with events requires long-term planning and close collaboration with multiple stakeholders. Some of the work we did in 2023 will bear fruit in 2024,” says Johan Pagerup, who leads S&E together with destination developer Ingrid Lövkrona.

“We hope that the event will attract visitors from all over the world.”

“One of S&E’s specific goals is to put the Bjäre Peninsula on the map. For us at GRAM Group, this contributes to more hotel nights and visitors eating at our restaurants,” says Marcus Thuresson, CEO of GRAM Group.

The BotaniCar event will be put on hold in 2024 to make way for a much larger car event, the Aurora. For the first time, this exclusive car event is being held in the Nordic countries. It showcases some of the world’s rarest cars, from classic collector cars to modern super sports cars. Aurora will be an annual event.

“We hope that the event will attract visitors from all over the world so that Båstad and the Bjäre Peninsula are put

Johan Pagerup and Marcus Thuresson hope that more event organisers will see the opportunities in Båstad and Ängelholm.

on the international destination map,” says Johan.

Another upcoming event is a tribute concert to opera singer Birgit Nilsson. Verdi’s A Masked Ball is being performed by top international singers together with the Helsingborg Symphony Orchestra on the centre court in Båstad.

A third major event that S&E worked on in 2023 took place in Ängelholm in January 2024. The Swedish national handball team played against Japan in Catena Arena and also held its training camp there. Several activities were organised in Ängelholm to involve local people in the handball festival.

Invest

Fabege’s subsidiary Birger Bostad plans to build several hundred new homes in the Haga Norra district in Stockholm.

Safe holdings in troubled times

Our Invest business area covers both listed and unlisted companies. High interest rates and a troubled world are shaking up the property sector, but Backahill is standing firm.

The high interest rates and weak economy in 2023 led to uncertainty in the property market. We note that many listed property companies have changed their strategy from focusing on acquisitions to prioritising sales. This is fuelled by costly borrowings from times when it was easy and cheap to borrow money. These companies will continue to focus on strengthening their balance sheets in 2024.

This is not the case for Backahill and our strategic equity portfolio. Our listed holdings in the property companies Diös, Fabege, Brinova, Catena and Wihlborgs are unchanged in 2023 as compared to 2022. A lot of time and energy has been spent on being an active and close owner in the board work of the companies to ensure a continued long-term and sustainable strategy.

We feel confident about our holdings. We have relatively strong ratios compared to many others. Our strategy has paid off. When borrowing money was “cheap” and many people were looking to increase their portfolios, we were not tempted to join the journey, but continued in the family spirit of the “church spire principle” and “making sure that there is enough hay in the barn to last through a famine”. Backahill’s strategic portfolio consists of significant shareholdings in five listed property companies. Our ownership in these companies exceeds ten percent of both capital and votes. The five companies have operations across large parts of Sweden and have various focus areas:

Diös, the largest private property company in northern Sweden, has an extensive portfolio stretching

from Borlänge in the south to Luleå in the north. Diös’ presence covers a large geographical region and includes various types of properties.

Fabege is primarily focused on the Stockholm region and is a significant player in commercial property in the capital city region. Fabege’s property portfolio comprises offices and other commercial properties.

Brinova Fastigheter owns and manages rental housing and community properties in southern Sweden. Brinova’s business is focused on providing housing and facilities that are important to local communities and their residents.

Catena specialises in logistics properties and is present in both Sweden and Denmark. The company focuses on providing modern and efficient logistics solutions for companies in various industries.

Wihlborgs is the leading commercial property company in the Öresund region and has an extensive portfolio of offices and property stock in Malmö, Lund, Helsingborg and Copenhagen. Wihlborgs’ properties are important for the region’s business life and infrastructure.

Through our ownership of these companies, Backahill plays a significant role in the Swedish and Danish property market, with a diversified portfolio across different geographical areas and property segments.

However, in these troubled times, we are positive about the future. Here, we can mention that together with other investors, we are involved in making new exciting property deals. The purpose of one of the investments is to build a property company primarily

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

Diös owns Årevägen 55, which is centrally located in Åre village. It offers a modern office setting.

Backahill Foods’ vegetable proteins are attracting a lot of interest from the food industry.

Scandinavian Mountains Airport is located near the Norwegian-Swedish border between Sweden’s largest alpine ski resort Sälen and Norway’s largest alpine ski resort Trysil.

focused on housing in Norrland, where we see good growth opportunities.

Our investment in Bjuv, Foodhills, is divided into two areas. Within Backahill Food, we have grouped our activities in circular, sustainable food production with a focus on peas and other legumes. Foodhills AB manages the pea production, GroPro AB produces the pea protein and GroPro Solution AB develops and sells the unique and energy-efficient technology used to produce pea protein. The second area contains our properties in Bjuv and is being developed by Foodhills Fastigheter AB. The premises on the old Findus site are continuously renewed and adapted. Today, it is home to an exciting cluster of small and large food businesses. You can read more about Backahill Food on page 62.

MMB i Båstad AB is 25 per cent owned by Backahill and is a construction company in Båstad that focuses on new developments and the renovation of properties for both the corporate sector and private individuals.

We hold a nine per cent stake in Scandinavian Mountains Airport, a state-of-the-art airport in the Swedish mountains. The airport improves access to the popular ski areas of Sälen and Trysil.

“Within Backahill Food, we have grouped our activities in circular, sustainable food production.”

Backahill’s shareholding in unlisted holdings at 31 December 2023

Foodhills AB

Fastigheter AB

Mountains AB

i Båstad AB

Construction company MMB will build Sollyckan – a residence for the over-50s in Båstad with 29 flats of various sizes.

Well positioned for the future

There is international interest in Backahill Foods’ bean and pea-based proteins and the technology behind the products.

The shift towards food production with a lower carbon footprint, locally grown crops and a focus on plant proteins is a growing trend. Backahill Food ticks all these important boxes, plus it has chemical-free production and low water consumption. This bodes well for the future.

“We are well ahead in the green transition. Looking at the trend and the current market forces, they further strengthen our position,” says Stefan Andersson, who heads Backahill Food.

The GroPro Solution technology, which makes it possible to produce vegetable protein gently and without chemicals or water, is a world first. And the product that the technology enables, yellow pea or fava bean flour, can be further developed.

“According to several experts it should not have been possible to do what we did.”

“During the year, we have further refined the protein flour and made textured products in a test facility with positive results. When we sent samples to major operators, they showed very strong interest.”

When the processed product is immersed in water, it expands. It can then be fried like minced meat for tacos, for example, and makes an excellent meat substitute.

“The refined product is flavour-free, performs well with good water retention and is produced entirely without chemicals. According to several experts, it should not have been possible to do what we did.”

In 2024, the refined product will be validated. The next step is to look at the possibility of investing in an extrusion facility, linked to the pea protein process that already exists in Bjuv.

“What we do is not easy, it takes courage, passion and perseverance to go for it. But we are seeing international interest in our technology platform.”

Green pea production in Foodhills showed both

positive and negative aspects in 2023. Foodhills has a very modern machine park and efficient production. Unfortunately, 2023 was not a good harvest year, in fact it was the worst in 30 years due to rain and drought at the wrong time in the season.

The outlook for 2024 is brighter in terms of crop area. The Ukraine effect that saw growers opt out of peas in favour of other crops has passed, and hopes are high that the acreage targets will be met, paving the way for bigger harvests – weather permitting.

“As an independent operator in pea production, we can fill a gap in the market. We are focused on broadening our customer base in Sweden and Europe and are exploring what our next step in the value chain might look like.”

In addition, Foodhills has now established itself on the market after several years of production.

“We have received confirmation from the market that our quality and delivery performance are highly rated. This means we can now take the next step,” says Stefan.

Stefan Andersson sees great opportunities for Backahill Food.

Brinova

Brinova owns, develops and manages rental housing and community properties at locations in southern Sweden. In these locations, Brinova is an important player in the housing market and for public decisionmakers. The business model creates stable cash flows that are invested in continued profitable value growth.

Brinova operates in a strong region, where distances are short and the significance of where you live is not very important. Security, proximity to public services and cost-effective rental housing are more important. Demographic changes and a growing trend to move outside major cities are driving demand for the locations where Brinova has chosen to establish itself: expanding areas with good transport links in and adjacent to southern Sweden’s major cities. Brinova’s growing property portfolio currently includes around 2,400 rental flats (completed or in-progress) and around 135,900 m² of community properties.

In 2023, Brinova’s underlying business was strong and the company was able to record a good occupancy rate and a stronger surplus ratio for the portfolio

as a whole. This is despite challenges such as high inflation and rapidly rising interest rates affecting the sector in which it operates. The importance of responsible self-management becomes even clearer in an uncertain market. A presence in the selected municipalities and proximity to tenants gives control over the business and the opportunity for good, longterm new business in the future.

Brinova

Catena

Catena develops efficient logistics facilities that are adapted to both today’s and tomorrow’s flows of goods through collaboration and in a sustainable manner. The facilities are managed on a long-term basis by the company, which takes a “perpetual” approach to property and tenant relations.

Catena operates in Scandinavia, one of the richest areas in the world. The population is growing: in 2023, the population of Sweden, Norway and Denmark was estimated at almost 22 million. Per capita GDP exceeds the European average, indicating relatively strong purchasing power in the region. From a logistics perspective, the Scandinavian countries are well positioned. When all the nations of the world are ranked in terms of infrastructure, logistics and supply chain management, all of them are in the top 20. Catena’s management is based on five regions: Malmö, Helsingborg, Jönköping, Gothenburg and Stockholm. Catena owns properties from Luleå in the north of Sweden to Kolding in Denmark in the south. In 2023, Catena performed relatively well in a turbulent world. This is partly due to its strong

financial position and partly to continued demand in the logistics property sector. The external environment is helping the company’s customers to focus more on optimising their distribution networks and supply chains to cope with increasing uncertainty and unforeseen external events. Catena is maintaining its specialisation in the logistics property segment at the same time as the company is developing in many dimensions and the pace of change in the company is faster than ever.

Catena

Backahill’s shareholding %

Diös

Diös is the property company that focuses fully on northern Sweden. With a unique position in ten growth cities, sustainable growth is created through commercial property development for tenants, shareholders and for Diös as a company. It’s offering is commercial premises in the right location for the right tenant. The ten cities are: Borlänge, Falun, Mora, Gävle, Sundsvall, Östersund, Åre, Umeå, Skellefteå and Luleå. The focus is on providing these cities with attractive office space, commercial premises for urban services and helping to build more housing.

The green transition, which is well underway in northern Sweden, involves huge investments of at least SEK 1,500 billion in basic Swedish industries, such as steel production, hydrogen and forestry. Major innovation companies such as Northvolt and H2 Green Steel have secured billions in new funding. Uniper and Jämtkraft are investing in the production of renewable electrofuel through NorthStarH2 in Östersund, one of many new ventures that are constantly being announced in northern Sweden. The high rate of investment and inward migration is leading to strong long-term economic growth. The range of services and other opportunities around these establishments is

crucial to success, and in these cities Diös is the largest property owner.

In a world affected by inflation, new financial conditions, war and uncertainty, Diös delivers its strongest operating surplus in the company’s history. Diös has seized new business opportunities and clarified its business model, which is permeated by sustainable initiatives, and has further strengthened its position as the largest property owner in a growing market. The company has delivered a very strong net operating income thanks to index adjustments, reduced vacancies and cost efficiency, resulting in occupancy rates and surplus ratios being at record high levels.

Fabege

Fabege develops safe, attractive and sustainable districts in Stockholm. Focusing on commercial property in a number of well-located submarkets, the company creates offices, workplaces and environments where people feel good and perform more effectively. Via its subsidiary Birger Bostad, Fabege is taking an even more comprehensive approach to housing development in selected districts. Faberge wants to be a present partner that puts people at the centre of the development of companies, places and cities. Value is created through the management and enhancement of existing properties, project development and transactions.

Fabege is one of the largest property owners in Stockholm, with a property portfolio spread across selected districts, all of which are well served by rail connections. The company has a good knowledge of the market thanks to a clustered portfolio and in-house management. This creates favourable conditions for efficient management and high occupancy rates. The company operates mainly in Stockholm city centre, Solna Business Park, Arenastaden/Haga Norra, Hammarby Sjöstad and Flemingsberg.

In today’s uncertain market, we are back to a reality

that requires balanced finances, reduced risk-taking and above all good cost control. The rising interest rates are reflected in rising required rates of return, which is reflected in the figures, as the company’s result after value changes was negative for 2023. Although conditions are tougher, Fabege is equipped with manageable risks and relatively low borrowings. Fabege’s strategy of focusing on Stockholm and a couple of submarkets in the region is a strength. The company knows its territory, is on the ground daily, knows the local business community and works closely with municipalities.

Fabege

Wihlborgs

Wihlborgs is the leading property company in the Öresund region. More than 50,000 people work on the company’s premises. Wihlborgs is working continuously to improve the company’s property portfolio by improving and developing existing properties, implementing new projects and acquiring and selling properties.

Wihlborgs offers commercial premises to companies and organisations in the Öresund region and is the market leader in the three Swedish cities of Malmö, Lund and Helsingborg, and also operates in the Danish capital Copenhagen. The company’s customers are both public organisations and private companies. The property portfolio consists of office and retail space, logistics and production facilities, and land for future projects.

The end of 2023 was incredibly active for Wihlborgs. The company has never signed new lease agreements of such high value as was done in the fourth quarter of 2023 – SEK 146 million. Rental growth is good in the company’s Swedish markets but weaker in Denmark. On a like-for-like basis, rental value has increased by 6.5 per cent in the Swedish

operations. In the Danish stock, the corresponding figure was 1.1 per cent.

Despite the uncertainty surrounding many external factors, the company is confident that it will continue to invest in selected markets. Wihlborgs is tightening its yield requirements and procuring contract services in a careful and prudent manner. By investing in both existing and new properties, the company is building its future growth, supporting local businesses and standing ready to offer customers attractive products when the economy recovers.

It is never forbidden to do business at a party.

Erik Paulsson

Successful work with SPEAK values

Fabege is a listed holding in Backahill’s Invest business area. Gunilla Cornell explains how the company developed its values and keeps them alive.

Erik Paulsson and his family are the largest shareholders in the property company Fabege, whose operations are concentrated in the Stockholm region: Arenastaden, Haga Norra, Solna Business Park, Stockholm city centre, Hammarby Sjöstad and Flemingsberg. The current Fabege was created in spring 2005. The origin of the name is an abbreviation for Fastighetsaktiebolaget Birger Gustavsson.

The presence of Erik Paulsson and his family is clear, not least when it comes to the company’s corporate culture and values. The values are summarised in five words: Snabbhet (Speed), Prestigelöshet (Staying humble), Entreprenörskap (Entrepreneurship), Affärsmässighet (Business acumen) and Kundnärhet (Customer focus). The first letter of each word in Swedish together forms the word SPEAK.

The words behind SPEAK were devised in 2006 and are actually a description of Erik Paulsson. These words were to form the basis for creating a set of values in

order to build a strong corporate culture in a relatively new company. But the words needed to be wrapped in substance to be meaningful to employees.

This is why a programme was launched in 2008 involving all employees – 120 people at the time. In groups, they discussed one word at a time. What does this mean to us?

SPEAK sets the framework for how an employee should behave and act.

“Everyone was involved and had their say. That was the key to success. For a long time, we could say that everyone was involved in developing what the words mean to us,” says Gunilla Cornell, HR Director and one of the people involved in developing the messages.

The work lasted throughout the spring of 2008 and ended with a conference where staff were invited to make films on the theme: “This is us when we are not SPEAK, and this is how we should be.” The films clearly reflected the values and have since been used several times internally.

Fabege’s HR Director Gunilla Cornell emphasises the importance of including all employees in order to create a strong set of values.

“SPEAK is part of our DNA. We discuss SPEAK at job interviews, salary reviews and performance appraisals. We talk about it a lot at our conferences when we are all together. SPEAK is with us all the time.”

The work was so carefully undertaken that the words have remained the same since 2008, and in 2019 a joint exercise was conducted which showed that no changes were needed. Research studies show that companies with strong values and culture are more profitable.

“Of course, we also act according to SPEAK externally, which I think customers notice as we often receive the feedback that we are a good property owner. We also hear consultants and suppliers spontaneously say that being here is so much fun.”

Like Backahill, Fabege is committed to being a good corporate citizen. For example, it wants to be part of the community in Flemingsberg, which is one of its focus areas in the Stockholm region. Fabege has also added a social clause to the tender documents for procurement that encourages the contracted supplier to accept trainees from the TalangAkademin during the contract period. Several suppliers have signed up, which in turn has led to several trainees being taken on. Another of several social commitments is the Läxhjälpen foundation for children who need extra support, of which Fabege is a main sponsor.

“We want to be involved and contribute where we can. Our commitment is genuine and visible, as we hear from others who come into contact with us.”

The concepts that make up SPEAK are fairly simple, and it is probably precisely this simplicity that makes the words work so well as a value base for Fabege.

“We will continue to periodically test whether SPEAK still works and how to ensure it lives on. We talk about SPEAK regularly. I would say that the vast majority of our 230 employees can recite the words in their sleep and know what SPEAK means to us.”

P E

SNABBHET

u Vi är effektiva, prioriterar snabba beslut, ger snabb återkoppling och erbjuder enkla lösningar.

u Vi agerar med tydlighet, är handlingskraftiga och är noga med att hålla angivna tidsramar.

PRESTIGELÖSHET

u Vi visar respekt genom att vara öppna och lyhörda mot våra arbetskamrater, kunder och leverantörer.

u Vi är viktigare än jag. Vi är lagspelare och strävar efter samarbete och sammanhållning laget.

u Vi är ödmjuka och visar mod genom att våga be om hjälp och dela med oss av våra kunskaper.

Fabege’s core values are based on five Swedish words that form the acronym SPEAK.

ENTREPRENÖRSKAP

u Vi ser möjligheter och är lösningsfokuserade.

u Vi är kreativa, innovativa och inspirerar till nya idéer.

u Vi är målinriktade och vill alltid hitta förbättringar.

AFFÄRSMÄSSIGHET

u Vi agerar alltid professionellt, söker win-win-lösningar och håller vad vi lovar.

u Vi ser till helheten och vad som är bäst för våra kunder, medarbetare och samhället på lång sikt.

KUNDNÄRHET

Sustainability report

Partnerships are key to sustainable development

Backahill’s efforts to create more sustainable operations and to promote the sustainable development of our region continued during the year.

Business is a key driver of sustainable development. Sustainable business can drive the transition and empower other actors in society. For this reason, we are pleased to see an increased focus on sustainability issues in our region.

Partnerships are key to sustainable development. Backahill aims to be a unifying and driving force. Through cooperation, we can share knowledge and insights. Through networks and good communication, we can inspire and create value for more people.

Backahill was one of the first companies to sign the sustainability agreement in Ängelholm. The agreement is a partnership between Ängelholms Näringsliv and Ängelholm municipality. A similar agreement already exists in Båstad. In both municipalities, local sustainability networks are now being established to enable more people to participate in the transition to a more sustainable society.

Together with three local partners, we have decided to become the hub organiser for A Sustainable Tomorrow, Sweden’s largest sustainability conference. Together, we will invite the business community on the Bjäre Peninsula to address relevant sustainability issues and create the right conditions for local mobilisation.

We have continued to be an active member of society. During the year, we have broadened our involvement and, together with the cultural and associative sectors, we are gradually moving forward and creating social benefits on several levels. We talk about the virtuous circle (see page 96).

The We are Backahill document is the result of important work finalised in 2023. It is our common compass and describes our heritage, vision and values. We are Backahill also constitutes our internal Code of Conduct.

We want to ensure that goods and services purchased are produced under sustainable and responsible conditions, which is why we have also introduced a Code of Conduct for our suppliers. Reducing climate impact is an overarching goal for

Backahill and we have taken important steps forward in this work during the year. We have established a sustainable construction programme to systematically address sustainability issues and reduce our climate impact in the construction phase. We have also taken a strategic decision to environmentally certify our new buildings according to the Nordic Ecolabel. It is a well-known label and the certification focuses on factors such as sustainable material choices and minimising the environmental impact of the construction process.

We have created the conditions to fulfil our goal of increasing the production of our own renewable electricity. Last year, we signed framework agreements with three local solar panel suppliers. A first facility of almost 200 kW will be built in Ängelholm in 2024.

We are building Ängelholm’s new sustainable district in Kronodalen. Our goal is that all property developers work together with the municipality to agree on a comprehensive sustainability programme that will help us achieve our vision of a district that promotes education, comfort, good health and well-being while preserving nature and the environment.

This year the sustainability report has been designed to be in line with the requirements of the Annual Accounts Act. The EU Green Deal and new directives on sustainability reporting will require more comprehensive and standardised reporting of our sustainability performance. The requirements are expected to be introduced between 2025 and 2027 depending on the size of the company and Backahill is expected to be subject to the new Directive for the 2025 reporting year.

We are gradually preparing to best meet the new requirements, identifying risks and opportunities and integrating them into our business model and operations. At the same time, we are focusing on activities that make a difference and create value for Backahill and our community.

We are also working on measures such as training and awareness-raising to increase sustainability competences, both internally and externally, of various stakeholders.

Sustainability governance

Backahill’s Board of Directors is responsible for the overarching strategy, which includes ensuring that sustainability is an integral part of our value creation, and is well informed about Backahill’s policies and procedures. Furthermore, the Board is specifically responsible for identifying risks and opportunities related to sustainability, including climate change, that may affect Backahill, our investments and strategy, and for defining appropriate policies to guide Backahill’s actions in the community.

To support our sustainability work, we have a number of policies and guidelines. These are regularly updated and made available to all staff.

We are Backahill is the company’s internal compass and summarises Backahill’s mission, vision and values. It also contains Backahill’s internal Code of Conduct. The core values, together with the Code of Conduct, form the basis for the behaviour of our staff.

Backahill’s sustainability policy aims to set the framework for how our daily work should be conducted in order to actively contribute to the global sustainability goals and integrate the three dimensions of sustainability into the operational activities and our business goals. By taking ecological, social and economic sustainability aspects into account, our activities should contribute to positive urban and social development and long-term sustainable business and investments.

We aim to be a conscious company that is a credible operator for all our stakeholders through transparent reporting.

Backahill’s Sustainability Director is responsible for driving the implementation of our sustainability strategy together with the rest of the management team. Backahill’s sustainability forum includes representatives from the responsible areas who have important roles in implementing activities and following up on the activities in our sustainability strategy. Our sustainability goals are formulated and reviewed in sustainability forums and approved by the management team.

Backahill’s sustainability framework clarifies the areas we focus on and serves as a foundation for our

sustainability communication. This helps to create clarity in our reporting and our sustainability report is structured according to this framework.

Value chain

Backahill owns, manages and develops property. We take ecological, social and economic sustainability aspects into account, which contributes to positive urban and social development and long-term sustainable business and investments.

The value chain in the property segment consists mainly of upstream local suppliers of services needed for the management and development of our properties, with construction contractors and property maintenance providers being strategically important partners. These activities are often labour intensive and in some cases subcontracted. This is where the potentially most significant business ethics, occupational health and safety and human rights risks in the value chain are likely to be found. The construction of new buildings and major adaptations of premises also have a significant impact on the environment and climate.

Backahill’s downstream customers consist of businesses and organisations as well as residents who are tenants in our properties.

Our investments in listed companies consist of holdings in Swedish and, to a certain extent, Nordic property companies, which entails a value chain similar to our own. Our ownership in the form of wholly and majority owned companies means that we are to some extent exposed to additional aspects, including hotel operations that require more staff.

We aim to be a conscious company that is a credible operator for all our stakeholders through transparent reporting.

Backahill’s policies and governance document

Name

Health and safety policy

Sustainability policy

Diversity policy

Whistleblower policy

Policy on first aid and crisis support

Privacy policy

Fire safety policy

Safety officer policy

IT policy

Vehicle and travel policy

Sponsorship policy

Corporate governance policy

We are Backahill, including the Code of Conduct

Supplier Code of Conduct

Backahill’s framework for sustainable construction

Main content

Describes how we work with systematic work environment management.

Sets the framework for how we work to integrate sustainability into our operations and into our business objectives.

Describes how we work on discrimination, harassment, diversity and equality.

Policy for reporting and handling misconduct in line with the Whistleblowing Directive and Whistleblowing Act.

Describes how risks can be prevented and avoided and our emergency planning and procedures for first aid and crisis support.

Ensures that personal data is processed in accordance with the provisions of the Swedish privacy legislation and the data protection reform GDPR.

Fire safety is an integral and natural part of the work environment.

Ensures that all workplaces have designated safety officers and that co-operation takes place in compliance with the Work Environment Act.

Describes the rules and guidelines for the use of IT resources within the organisation. The purpose of the document is to protect the company’s operations, customers, partners, employees and other stakeholders.

Policy for business travel, as well as for company vehicles that are owned, leased or rented. Also constitutes a guiding document for the procurement of vehicles and transport services.

Provides guidelines on how we conduct our community engagement through sponsorship.

Establishes guidelines and principles for how Backahill should work with ownership matters. Backahill demands a sustainable and responsible approach to business, including good business ethics, anticorruption, legal and regulatory compliance, and working towards an inclusive and gender-equal society.

Describes Backahill’s vision, mission and values. It also contains Backahill’s Code of Conduct, which makes it clear that we support the UN Global Compact’s principles for human rights, labour rights, the environment and anti-corruption.

Requires suppliers to comply with laws and regulations and to act with good business ethics. Goods and services supplied should be in line with the 10 principles of the UN Global Compact and the OECD Guidelines for Multinational Enterprises.

Primarily an internal policy document that aims to create a common understanding and systematic approach to how we work with sustainability issues in construction and renovation projects.

Risks and risk management

Managing risk is a fundamental part of Backahill’s business principles. The management team carries out risk assessments and updates them annually. The overall responsibility for risk management lies with the Board, while operational responsibility is delegated to the CEO.

Risk assessment is carried out based on identified company- and sector-specific risks, sustainability risks and more general local, regional and global risks.

The methodology used for the risk assessment involved assessing and evaluating each risk based on the likelihood of its occurrence and the consequences of its occurrence. The combination of these two parameters results in each risk being assessed on the basis of three risk levels: ‘low’, ‘medium’, or ‘high’. Risks have been assessed in a short- to medium-term perspective of two to five years.

Backahill’s current ability to prevent and manage the risk is then assessed. The risk is then prioritised based on the level of risk combined with our current ability to prevent and manage the risk.

To facilitate structured risk management, we have chosen to classify risks into different categories.

Reducing

energy use and climate emissions from our buildings

is a way

to future-proof our operations, reduce our costs and meet future demands.

During 2023, a more specific screening of sustainability and climate-related risks was also carried out. Climate risks can be categorised into transitional, political, technological, and regulatory risks that arise when society needs to limit climate impacts, as well as physical climate risks in the form of floods, heatwaves and other forms of extreme weather. In the medium to long term, we see that there is a high

probability that increased regulation will also lead to higher demands being placed on companies. This includes costs and taxes related to energy, emissions, land use and building standards, but also measuring and reducing carbon emissions and the energy consumption of buildings. The costs of some raw materials and supplies are also likely to increase.

The development of the EU Taxonomy of Sustainable Activities and the forthcoming EU Directive on Sustainability Reporting (CSRD) will raise the bar and increase the scope and reporting of sustainability work.

Changing weather conditions are already affecting our buildings and districts. A warmer climate and higher temperatures pose several challenges – they will affect cooling and heating, but also mean that districts will need to be designed and adapted to better cope with erosion, torrential rain and floods, and heat waves.

Backahill plans to conduct a more detailed climate risk and vulnerability analysis of our property portfolio in the coming year.

Active risk management also brings opportunities. Reducing energy use and climate emissions from our buildings is a way to future-proof our operations, reduce our costs and meet future demands. These types of actions allow us to remain an attractive company for our stakeholders.

Blue and green structures in and around our properties can be good measures to manage climate change and regulate temperature changes, provide shade, and provide protection from storms and floods. At the same time, greenery and vegetation contribute to the health, well-being and comfort of our tenants and city residents.

Low likelihood/ consequence

Medium likelihood/ consequence

High likelihood/ consequence Low priority Medium priority

priority

Risk summary

External risks

Global or multinational crises

Commerce patterns, living and/or working habits

Macroeconomics and the business cycle

Management risks

quence

Global, regional or local crises such as pandemics, wars and natural disasters that affect our operations.

Changing commerce patterns, work patterns and housing demands affecting the property sector and town centre development.

Individual macroeconomic events or fluctuations that affect society and directly or indirectly our business.

Occupancy rate A change in the occupancy rate affects revenue.

Rent levels

Risk of rent levels changing and affecting rental income.

Management costs Risk of management costs changing and affecting net operating income.

Security Risks of insecurity, burglary or vandalism.

Project risks Planning processes

Excessively long planning processes negatively change conditions.

Project costs Risks of increased or unexpected project overheads related to labour, materials, raw material costs, etc.

Acquisitions

Risk of incorrect valuations or missed cost items, which could lead to poorer performance and value growth.

Backahill has an active business intelligence programme. There is a crisis response and an established crisis plan.

Flexibility in the customisation of premises combined with an active and proactive dialogue with existing and potential tenants reduces our risk.

Active business intelligence, combined with continuous stakeholder dialogues, increases our ability to manage this risk.

The majority of Backahill’s properties are centrally located in good locations, which generally means a low vacancy rate. Local management combined with an active and proactive dialogue with existing and potential tenants reduces our risk.

Long-term contracts, good customer relations and indexation of rents reduce risks.

Relatively large parts of the costs can be passed on to the tenants, which reduces the risk.

Local management, co-operation with local stakeholders and preventive security measures reduce the risk.

Good project planning combined with continuous stakeholder dialogue reduces risks.

Good procurement and project management practices.

Good knowledge of local properties combined with careful due diligence reduces our risks.

Risk

Environmental and climate risks

Climate impact Risk that operations have a negative impact on the climate.

Physical climate risks Long-term climate change (warmer temperatures, rising sea levels etc).

Transition risks: Requirements, instruments and regulations. Brand risks

Extreme weather: torrential rain, floods.

New sustainability-related EU directives, local legal requirements or guidelines. Changes in taxes and increased prices of materials or costs of climate action. Sustainability requirements from stakeholders.

Biodiversity The risk of impacting air, water, soils and pollination contributing to long-term negative consequences for the environment and society.

Pollution and environmental damage

Crisis response

Power cuts

Financing risks

Pollution or environmental damage in and around our properties. The property owner may be required to carry out and pay for remedial action if the operator cannot.

Risk of power cuts, planned or unplanned.

Terrorism Risk of terrorist acts affecting properties, employees, tenants or other stakeholders.

Fire Risk of fires in and around the properties.

Cyberattacks and data breaches

Liquidity

Interest rates

Taxes and charges

Property valuation

Credit risk

Risk of cyberattacks and data breaches.

The risk of not being able to fulfil payment obligations and/or the risk that financing is not available or can only be provided on unfavourable terms.

The risk that changes in market interest rates and/or credit margins have a negative impact.

The risk of changes in taxes and charges with a negative impact on the economy and finances.

The risk of property valuations having a negative impact on the balance sheet.

The risk of our tenants being unable to fulfil their payment obligations.

We have an overarching goal to reduce our climate impact and are working in several areas to reduce it – both internally and in collaboration with other stakeholders.

We monitor the evolution of climate change and carry out general and specific climate risk analyses with appropriate measures.

Business intelligence and proactive work for upcoming legal requirements. Environmental certifications and investments in areas such as energy efficiency measures and renewable energy production.

Backahill has relatively small green spaces and centrally located properties. We rarely develop unclaimed land. Our supplier code and choice of materials reduce risk in the value chain.

We comply with applicable environmental legislation and set requirements for our suppliers. When acquiring assets, we take environmental risks into account.

Backahill has developed a specific procedure for dealing with power cuts.

We implement security measures at our properties and cooperate with local authorities. Backahill also has an established crisis response plan to deal with crises that arise.

We comply with laws and regulations and have a specific fire safety policy.

Risks are managed through antivirus systems, spam and web filters and firewalls. We communicate about risks internally.

Backahill has good liquidity, and maintains regular contact with financial institutions to secure additional liquidity if necessary.

Backahill has a high equity ratio and limited debt financing. We follow the interest rate market and maintain an ongoing dialogue with financial institutions. Decisions on fixed interest rates are made on an ongoing basis according to assessed interest rate developments.

Backahill monitors developments in this area and acts proactively to manage the potential impact of changes.

Long contracts and stable customers, combined with properties in central and active locations, provide good conditions for maintaining property values, even in a weaker economy.

To limit counterparty risk, we foster a close dialogue. We carry out credit checks and can impose creditworthiness requirements.

Risk summary cont.

Category Risk Description

Responsible running of the business

Employees Risks related to employees (well-being, health, recruitment, etc.).

Human rights Internally, but also in subsidiaries, suppliers and subcontractors working on our behalf.

Ethics and anti-corruption Internally, but also in subsidiaries, suppliers and subcontractors working on our behalf.

Harassment and victimisation Internally, but also in subsidiaries, suppliers and subcontractors working on our behalf.

GDPR/ Privacy risk

Risk of breaches in personal data processing. Breaches of the rules can result in substantial fines.

Accidents The risk of causing physical harm to employees, external staff or other people.

Ownership risks Liquidity needs Need for liquidity in our investments.

Changes in the value of our financial holdings

The value of the holdings and dividends are affected by earnings and share price developments.

Diversification risk Too low/little diversification (sector, geography etc).

Compliance risks of holdings

Legal and business ethics.

Sustainable ownership Sustainability-related risks that are costly or seriously damage the brand of our holdings.

Knowledge and expertise

Risk of not having sufficient expertise and market knowledge for our holdings.

Market valuation Risks due to a higher degree of difficulty in valuing unlisted companies.

Key ratios and monitoring

Risk due to lack of established key ratios, governance models or benchmarking.

Backahill actively promotes health, well-being and satisfaction in the workplace and among employees. We have a clear set of shared values which, combined with appraisal interviews, staff meetings and an annual employee survey, help us to ensure that our employees are happy and healthy.

We work internally and externally through active ownership and in our dealings with suppliers to prevent human rights violations from occurring. Limited international exposure.

We comply with laws and regulations and are committed to sound and ethical business practices, and set similar standards for our suppliers and in our ownership.

Backahill has zero tolerance for harassment. A whistleblowing policy and whistleblowing facility have been put in place.

We comply with laws and regulations and have established a GDPR policy.

Backahill has a vision of zero accidents. We comply with laws and regulations. Our health and safety policy and systematic work environment management are fundamental to achieving this.

Active ownership combined with good corporate governance.

Active ownership combined with good corporate governance.

Active ownership combined with good corporate governance.

Active ownership combined with good corporate governance.

Our major holdings are recognised for their sustainability efforts. Active ownership, combined with corporate governance policies that address sustainability issues, reduce our risk.

Backahill’s largest holdings are in the property sector, where we have good knowledge and insight. Active ownership with relevant ownership directives reduces risk.

Active ownership combined with good corporate governance. Skills acquisition.

Active ownership combined with good corporate governance. Skills acquisition.

Stakeholder dialogues ensure that we focus on the issues that are particularly important to our stakeholders.

Stakeholder analysis and stakeholder dialogues

Through a stakeholder analysis, we have identified and prioritised Backahill’s most important contacts. By holding dialogues with our stakeholders, we ensure that we focus on topics that are particularly important to them.

The key issues have been identified through discussions, meetings and surveys with stakeholders. The majority of our dialogues are integrated into existing processes.

Customer surveys are usually conducted every two years, but interaction with our tenants also takes place on an ongoing basis through customer dialogues and management issues.

An employee survey and individual appraisals are conducted annually and provide valuable input in a number of areas.

In addition to the specified dialogue opportunities (see page 84), Backahill continuously informs and communicates with various stakeholders via personal meetings, the website, press releases, social media and the annual report.

Stakeholder analysis for Backahill

Stakeholders

Owners

Employees

Municipalities and authorities

Our owners are our most important stakeholders, forming part of, and appointing part of, the Board of Directors that ultimately decides on the governance of the company.

Engaged, healthy and satisfied employees create conditions for good results and make good ambassadors for Backahill.

Tenants

Suppliers

The municipality is an enabler, demander and partner in community development issues and property development.

Authorities are enforcers of laws and regulations.

Tenants are our customers and the people who use our properties. They are also stakeholders and the customers of other tenants.

Suppliers carry out work and tasks on behalf of Backahill. They are important partners and influence tenants as well as various stakeholders in the value chain.

Method and frequency of dialogue*

Board meetings, four times a year.

Ownership meetings, regular and ad hoc management team meetings, monthly.

Employee appraisals, at least once a year.

Employee survey, once a year.

Training programmes, ad hoc.

Employee meet-ups, approximately six times a year.

Town planning meetings, ad hoc business meetings, several each year.

Individual meetings.

Planning processes, land allocation, ad hoc.

Annual report.

Annual contract negotiations.

In-person meetings, ad hoc.

Customer survey, every two years.

Customer portal and case management, ad hoc.

Networking meetings and events.

Contract negotiations and procurement.

Supplier monitoring, ad hoc.

Construction meetings, ad hoc.

In-person and digital meetings, regular.

Network meetings and events, ad hoc.

Financiers

Financiers create the conditions for investment and support different types of transactions.

Procurement and renegotiation, ad hoc.

In-person and digital meetings, regular.

Capital Markets Days, once a year.

Annual report.

Associations

Associations are an important part of our society, promoting health, well-being, integration, inclusion, development and more.

Citizens The local community and residents are stakeholders from many different perspectives.

Partnership monitoring, at least once a year.

Network meetings, several times a year.

Association networks and events, ad hoc.

In-person and digital meetings, ad hoc.

Network meetings, ad hoc.

Association networks, ad hoc.

Events, ad hoc.

Visibility in our community engagement.

Other property owners

Other property owners are stakeholders and partners in urban development projects and in industry issues.

Meetings of trade organisations (property owners), four times a year.

Network meetings.

Capital Markets Days, once a year.

Individual meetings, ad hoc.

*In addition to the dialogue methods listed, Backahill communicates regularly through social media, the website, press releases, news and the annual report.

Expectations

Long-term stable returns and sustainable growth. Acting responsibly.

Positive force in local community development.

Safe, secure and healthy working environment.

Personal development.

Corporate responsibility for the individual, the environment and society.

Work-life balance.

Pride in work and in the employer.

Property owners are expected to take responsibility for urban and community development issues. Be accountable for the positive and sustainable development of society.

Compliance with EU directives, ESRS and EU taxonomy.

Customer care, service levels and maintenance. Well-being and security. Information, collaboration and knowledge sharing. Environmental and energy issues and reducing climate impact.

Act as a good procurer with reasonable and relevant requirements and fair conditions. Collaboration.

Ethics and morals. Solvency.

Sound economy. Transparency and compliance. Climate impact, sustainability reporting.

Financial support. Commitment. Communication. Cooperation.

Jobs and a favourable business climate.

Training and development opportunities. Culture and associations.

Recreation, safety, outdoor environments, services.

Collaboration on urban development and social issues.

Pursue common interest issues. Share knowledge.

Key issues for Backahill

Committed, healthy and satisfied employees create the conditions for achieving good results and become positive ambassadors for Backahill.

Good corporate governance.

Generate long-term stable returns and growth.

Promote community and urban development. Act responsibly at all levels. For the environment, society and employees.

Promote a good working environment, well-being and good health.

Create a fair, safe and inclusive workplace.

Promote participation and development.

Measure employee satisfaction and work on areas for improvement. Tackle harassment, victimisation and discrimination.

Comply with national and local laws and regulations.

Maintain a good dialogue, interact and inform on relevant issues. Contribute to positive and sustainable urban and community development and increase the attractiveness of the region.

Transparent reporting and communication.

To attract tenants, we need to understand their needs and desires. Work to promote well-being and safety.

Local management with a high level of service.

Dialogue and partnership.

Information on Backahill’s sustainability work and on energy and environmental issues.

Be clear about requirements, expectations and follow-up. Prioritise sustainability among suppliers and in the supply chain.

Train and share knowledge.

Promote local suppliers and foster good partnerships and relationships.

Act in a way that is ethical, moral and counters corruption.

Safe working environment.

Sound financial management.

Transparent reporting and communication. Responsible running of the business.

Reduce climate impact.

Actively support and promote local associations and culture.

Act as an advocate in favour of children and young people’s physical activity, health and well-being.

Act as an advocate in favour of equality, diversity and human rights.

Contribute to and facilitate associations’ positive impact on the sustainable development of society.

Promote positive urban and community development.

Create living environments and business opportunities for various needs.

Promote culture and associations.

Work towards a region that’s sustainable in the long term.

Participate in relevant forums and professional organisations. Collaboration on urban development issues and common interest issues.

Collaboration

Backahill aims to be a unifying and driving force. For this reason, we prioritise collaboration. They help to build relationships and networks that can benefit the region and lead to future business opportunities.

At Backahill, we want to be involved and represented in forums and contexts that contribute to the region’s development and advance important social issues. We also promote and participate in key initiatives and networks related to sustainability issues.

We were one of the first companies to sign Ängelholm municipality’s sustainability agreement, after having previously signed a similar agreement in Båstad municipality. By signing, we want to show the importance of working with sustainability and contributing to a more sustainable region. We also participate in the local sustainability networks established in each municipality.

Together with Båstad Turism och Näringsliv,

Båstad Municipality and Bjäre Kraft, we plan to jointly arrange a hub in 2024 via the organisation A Sustainable Tomorrow in Båstad. We call the hub Hållbara Bjäre [Sustainable Bjäre], and we hope it will become a meeting place where various experts and organisations can meet, discuss and learn from each other in the field of sustainability in order to create a positive shift together.

Our shared ambition is also for the event to reach out to and engage schoolchildren in the municipality.

Backahill is represented on the board of Fastighetsägarna Syd and is a member of Båstad Turism och Näringsliv and Ängelholms Näringsliv. We are initiators, active in the board and the work with

Ängelholms Akademi. We regularly participate in various types of local network meetings.

Backahill is one of the hosts of Capital Market Days in Båstad where property companies, analysts and other stakeholders gather to exchange knowledge and discuss trends and future issues for the industry.

Backahill has been a member of the Swedish Green Building Council since 2019. In 2023, we became a member of Solar Region Skåne, which aims to make the region a leader in solar energy.

Collaboration also permeates our community engagement in associations and cultural organisations. Together, we engage in various sustainability initiatives and collaborate on a range of sustainability issues.

Backahill is one of six companies that became the first to sign Ängelholm’s sustainability agreement – a declaration of intent to actively work towards a sustainable Ängelholm.

“Together, we must build a sustainable and robust Ängelholm for future generations.”

Kristina Magnusson, Municipal Director at Ängelholm Municipality.

Backahill

is part of the official ‘A Sustainable Tomorrow’ hub in Bjäre

We see an opportunity and have good support for sustainability issues on the Bjäre Peninsula. For example, a sustainability agreement was introduced in the municipality via Båstad Turism och Näringsliv a couple of years ago. However, more people need to contribute and a larger forum to raise and address sustainability issues in the municipality is needed. That’s why it seemed appropriate to establish an AST hub together with some strong local forces.

The 2030 Agenda and the UN’s Sustainable Development Goals

Backahill supports and wants to contribute to the fulfilment of the 17 SDGs of the UN Agenda 2030.

Sustainable development has been defined by the UN as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. All of the goals are important for achieving sustainable development, and several of the goals are linked to and influence each other.

Backahill has evaluated and identified the six goals that we believe are most relevant to our business and stakeholders, and where we have the greatest opportunity to make a difference.

Good health and well-being

Good health and well-being are fundamental to a sustainable society and sustainable global development. As property owners, property developers and destination developers, we have great opportunities to contribute through our involvement in local associations and culture, as well as the environment, and life in the city and between buildings. We also have a responsibility as an employer. We can contribute to goal 3 through our work on goals 7, 9, 11, 13 and 17.

Sustainable energy for everyone

The building and construction sector accounts for around one third of energy use in Sweden, which means we have a responsibility and an opportunity to make an impact. Since our electricity systems are interconnected, less electricity use and an increased share of renewable electricity production in Sweden also means opportunities for a more fossil-free energy system on the continent. We can contribute to goal 7 through our work on goals 9, 11, 13 and 17.

Sustainable industry, innovation and infrastructure

A functional and stable infrastructure is the foundation of any successful society. As community developers, we have an important role in helping to ensure this. Investing in sustainable industries, research, green technologies and innovation are all important ways to create the conditions for sustainable development. Collaboration and dialogue with associated companies, customers and suppliers are other important activities. We can contribute to goal 9 through our work on goals 7, 11 and 17.

Sustainable cities and communities

Today, more than half of the world’s population lives in urban areas and the numbers are rising rapidly. Sustainable urban development means sustainable construction and management, and by extension, sustainable cities and communities. Through greener buildings, we can reduce the city’s environmental impact. Backahill will be an active force for positive and sustainable social development. We focus on social and ecological sustainability when developing the physical environment for life in and around our properties. We support the positive force of associations. We promote education and knowledge and help to create places for an active associative and cultural life. We can contribute to goal 11 through our work on goals 3, 7, 9 and 17.

Climate action

Climate change is a real and undeniable threat to our entire civilisation. The construction and property sector is responsible for around 20 per cent of greenhouse gas emissions in Sweden. The sector also contributes to significant emissions abroad through imported goods. The largest emissions occur during construction and renovation. As property owners and developers, we therefore have a great responsibility to reduce our climate impact. We can contribute to goal 13 through our work on goals 7, 9, 11 and 17.

Partnership for the goals

As a community builder, Backahill has an important role to play in being a relationship builder and enabler and does so by participating in and supporting various initiatives that promote sustainable community development and the Global Goals. Backahill aims to be a unifying and driving force. Through cooperation, we can share knowledge and insights. Through networking and communication, we can engage and inspire more people.

Backahill’s sustainability framework

Backahill’s sustainability framework is an extension of our business concept and strategy. The framework clarifies the areas we focus on and serves as a foundation for our sustainability communication. This helps to create clarity in our reporting and our sustainability report is structured according to this framework. The three areas are interlinked and in many cases have positive synergies with each other.

Environmentally smart properties

Property is at the heart of our business. Environmentally smart properties mean reducing our climate impact and promoting a sustainable ecosystem during the life cycle of the property.

The concept of environmentally smart properties also encompasses the environment we provide in and around our properties to enhance comfort, health and well-being. Ultimately, it is about creating more attractive properties and city centres for our tenants and other stakeholders.

Climate impact

Climate change as a result of greenhouse gas emissions is perhaps the most important issue of our time. The construction and property sector accounts for around 22 per cent of Sweden’s total greenhouse gas emissions.

Backahill’s overarching goal is to work towards minimising our climate impact. This involves a wide range of activities in and around our properties, throughout their entire life cycles.

In 2023, we took the decision to environmentally certify all new construction according to the Nordic Ecolabel. It is an environmental certification system for the construction of multi-family buildings, individual houses, pre-schools and retirement homes. Nordic Swan Ecolabelling certification means that a building has low energy consumption, a good indoor environment, sustainable materials, no hazardous chemicals and that the construction process has a minimal environmental impact.

We have also introduced a sustainable construction programme. It is an internal policy document with guidance to establish a more sustainable and climate-smart process throughout the planning and construction phase. Backahill will also be able to fulfil stricter legal requirements in the future, such as the EU’s taxonomy requirements and the Swedish

National Board of Housing, Building and Planning’s updated building regulations. The programme is also used as a checklist to ensure that suppliers and partners meet the requirements.

As part of our management work, we undertake several activities related to energy use and energy efficiency that contribute to reducing our carbon footprint.

To reduce the climate impact of our own travel, we ensure that there is bike parking for everyone and the possibility of charging electric cars at the workplace. We always consider whether a digital meeting can replace a physical meeting. When we fly, we choose a ticket with a biofuel surcharge if possible. All operational service vehicles are now electrically powered. The only company cars we offer are hybrid or electric cars. We also offer electric vehicle charging at our properties.

For the second year in a row, we have made an effort to calculate our climate impact according to the Greenhouse Gas Protocol (scope 1 and 2). Our ambition is to gradually improve our data collection and calculation base.

We are conscious that the majority of Backahill’s climate impact occurs in our value chain (scope 3). This is largely related to the materials, goods and services purchased in connection with the construction and renovation of buildings, but also to the impact of our tenants and our investments. We will gradually expand the calculation to cover the Group and also include scope 3, with the aim of subsequently setting targets in line with the Paris Agreement.

Backahill is following the development of offsets and carbon capture methods but does not intend to actively offset in the near future, focusing first and foremost on activities to reduce our emissions.

A significant part of the energy consumed in a building is used by the tenants. Through information and dialogue with them, we can reduce energy use together.

Backahill’s climate impact

Our calculations show that in 2023 we emitted a total of around 2,734 tonnes of CO2e (location-based), which is an increase from the previous year in absolute terms. Most of the increase is attributable to a number of property acquisitions, including an oil-heated property in Båstad. This property will be converted to use heat pumps for heating.

Energy use and energy efficiency

According to the property owners’ association, in 2021 the construction and property sector accounted for energy use equivalent to around 34% of Sweden’s total energy use. Working to reduce our energy use is therefore important from both an environmental and economic perspective.

Backahill works according to a strategy which means that we focus on using the right energy for the right purpose. This means that we use district heating for heating wherever it is available. Among other things, this enables electricity to be used in the transition required for a fossil-free society.

We are continuously working on reducing energy use and on different types of energy-efficiency measures. During the year, we installed new energy management systems in a couple more properties. We are gradually replacing older light fittings with more efficient LED light fittings.

A significant part of the energy consumed in a building is used by the tenants. Through information and dialogue with tenants, we can reduce energy use together. We therefore share tips and advice for reducing energy use through various information channels. Since the end of 2022, we have been providing what are known as Green Leases to our commercial tenants. Green Leases are an annex to the lease agreement that aims to facilitate dialogue and cooperation on sustainability issues, including energy use. Our ambition is to gradually increase the number of Green Leases and we offer this with every new lease or renegotiation.

On a “like-for-like” basis, i.e. excluding identified major items affecting comparability, the increase was significantly smaller and can primarily be attributed to the fact that a property with gas heating is now included in the calculation, which was not previously the case. We are seeing positive developments in a couple of areas, including a reduction in emissions from our own vehicles as a result of the phasing out of pure petrol and diesel cars.

* When calculating the market-based figures, we assume the emission factor is zero (0) for electricity (Bra Miljöval) and for biogas.

The calculation includes operations in the companies where we have an ownership share of more than 50 per cent. To calculate emissions, we primarily use data from our suppliers, or conversion factors from the Swedish Environmental Protection Agency.

Scope 2 includes all the energy used in our properties. It includes the energy purchased by Backahill, as well as the energy used for its own use in the form of property electricity, but also that used by our tenants. It also includes the energy purchased by our tenants.

For properties where the tenant is responsible for energy contracts, we have either used data on use from the tenant or made estimates based on average consumption for other properties.

The district heating and gas consumption purchased by Backahill is normalised in our energy system.

We report both “market-based” and “location-based” climate impacts for transparency purposes. In many cases, we lack information on the type of energy purchased by our tenants.

Backahill’s ability to offer renewable energy is becoming increasingly important to our tenants. In 2023, we only purchased electricity with The Swedish Society for Nature Conservation’s Bra Miljöval [Good Environmental Choice] label. Guarantee of Origin-labelled renewable electricity has a limited impact on the electricity produced but makes a statement. In addition to origin labelling, Bra Miljöval [Good Environmental Choice] means that certain requirements are imposed on production facilities and that a small proportion of the cost is allocated to funds for environmental improvement work.

Backahill aims to produce and use more self-generated renewable energy by investing in solar panels on existing roofs where appropriate, and as a rule on new buildings. During the year, we signed framework agreements with three local suppliers of solar panels, and at the end of the year we placed our first order. The facility will be built on the Förmannen 3 property in early 2024 and is expected to produce around 170,000 kilowatt hours per year. The investment is indirectly financed together with our tenants as they will use most of the electricity produced.

In cases where the properties are heated with gas, which mainly occurs in Båstad, we buy biogas.

In 2023, we became members of Solar Region Skåne. The association’s vision is to limit the climate impact in the region and strengthen the regional energy supply through an increased expansion of renewable solar power in Skåne.

Life on land

Eco-system services are the products and services provided to humans by natural ecosystems that contribute directly and in the long run to our well-being and quality of life. Biodiversity is an umbrella term for all the variation that exists between and within species and habitats on planet Earth. The loss of ecosystems and the depletion of biodiversity is a global challenge. At Backahill we are therefore exploring how we can work more actively with this in connection with our properties and together with other stakeholders in urban development projects.

Working with ecosystem services and green structures brings not only positive effects for nature but also other added values. For example, the ability of ecosystems to purify air, reduce temperature, manage stormwater, and provide recreation and healthy environments.

Green infrastructure can play an important role in climate adaptation measures as trees and plants contribute to a balanced microclimate and can regulate extreme weather events such as heat waves or torrential rain. In addition, trees and plants absorb carbon dioxide.

We also need to consider potential negative impacts on biodiversity and ecosystems in our value chain, for example in the extraction and production of products and materials.

Water and waste

Water is a resource, and we take good care of sewage treatment systems and waterways so that they are not polluted. For tenants whose businesses require specific treatment equipment we collaborate on solutions. Where necessary, we also install stormwater treatment equipment. We monitor water use in properties, investigate high use and take action.

For Backahill, waste arises partly in connection with construction projects and tenant fit-outs, and partly through the waste that tenants and we ourselves generate in our operations.

Backahill currently offers waste fractioning to all tenants where possible, and in recent years we have improved recycling facilities at several properties.

Objectives and positions taken Status

Reduced climate impact. We shall reduce our climate impact by actively working on the following targets:

– Reduce energy use.

– Increase own renewable electricity production.

– Transport and travel.

– Increase our understanding of the climate impact of new construction and refurbishment.

Reducing our climate impact is our long-term overarching goal. Several activities and measures have been implemented to reduce our climate impact in both the short and long term.

For our climate impact in terms of carbon emissions, see Backahill’s climate impact, page 93.

Birdhouses provide homes and give job training

Ängelholm municipality’s resource centre has produced a number of birdhouses and insect hotels on behalf of Backahill. The centre employs people who need job training in order to establish themselves in the labour market.

Job training becomes more relevant with concrete tasks that fulfil a purpose. In addition to hopefully getting more people into the labour market, they contribute to Backahill’s sustainability work by creating better conditions for biodiversity on and around our properties.

Putting people at the centre

At Backahill, we put people first. We do this by developing pleasant and practical properties, by being active in the general development of society and by being involved in local associations and cultural life.

We develop properties and neighbourhoods to help people feel comfortable and happy. We support and cooperate with associations and organisations to promote positive community development. We look after our staff. Our people are the ones who make us successful, which is why we are committed to being a responsible and attractive employer.

We develop properties and neighbourhoods to help people feel comfortable and happy.

Med människan i centrum

”Den goda cirkeln”

Reduced societal costs

Increased tax revenue Communication Commitment

Safety and well-being

The virtuous circle

DIRECT EFFECTS

Well-being | Self-esteem

Inclusivity | Community Self-management

Reduced ill health Investments

INDIRECT EFFECTS

School results | Occupations

Integration | Role models

Positive societal developments

Proud employees

Satis ed tenants

Goodwill

The virtuous circle summarises and illustrates the value created by engagement and investment in terms of direct and indirect impacts at the individual level, as well as the long-term benefits to society.

Community engagement

Backahill actively supports local associations and culture. Giving back to the local community and promoting good non-profit organisations is one of the cornerstones of Backahill’s sustainability work. Associations and sport play a major role in promoting health and well-being, and generate significant direct and indirect societal benefits.

The virtuous circle summarises and illustrates the value creation that Backahill’s engagement and investments provide in terms of direct and indirect effects at the individual level, as well as the long-term social benefits generated in society. Together we make a difference.

Backahill mainly supports local associations and cultural organisations. The focus is on promoting children’s and young people’s participation in sport, as well as direct or indirect health and well-being. We also want to promote equality, inclusion, integration and good leadership. In addition, a lot of organisations have the ambition and desire to make a difference and take responsibility on a broader scale.

When signing collaboration agreements, we want to be clear about our expectations and focus on the parts of the organisation’s work that we see create extra value for individuals and society. We maintain an ongoing dialogue, evaluate and follow up with our partners to ensure that we jointly achieve the desired outcomes. Our aim is that the majority of our future collaboration agreements will be monitored on parameters that clearly add social benefit or otherwise contribute to our sustainability values.

In 2023, we have further broadened our societal engagement, focusing on engagements that are more centred on creating direct societal benefits.

A clear example is Drivkraft, which works with schools to offer mentoring and homework help. Together, we made the start-up of their operations possible at Kungsgårdsskolan in Ängelholm in 2023. This has led to the engagement of new mentors and resulted in a total of 206 visits to pupils for homework help sessions.

In addition to associations, Backahill also provides annual support to charitable organisations that are close to our hearts and activities, as well as to selected charitable or cultural projects.

Pettson and Findus move into Hembygdsparken

In Hembygdsparken in Ängelholm, Hembygdsföreningen, in collaboration with Backahill, will build two beehives next to the new Pettson & Findus village. In addition to creating a new visitor attraction, we hope to help educate and raise awareness of the role of pollinators in our ecosystems and increase understanding of the importance of biodiversity. In addition, we allow the association to sell the honey it produces.

Strong support for associations

Giving back to the local community and supporting positive non-profit efforts is a central part of the sustainability work at Backahill.

Here are testimonials of ten of the associations Backahill supports:

Ängelholm Outdoor

Ängelholm Outdoor is a leading floorball competition with participants from all over the Nordic region.

angelholmoutdoor.cups.nu

“Through our long-standing partnership with Backahill, we can offer children and young people an active summer experience in Ängelholm. With 5,000 practitioners and 10,000 visitors, Outdoor is a world leader. The municipality, its residents and businesses are positively affected by Outdoor.”

Ängelholms FF

Ängelholms FF conducts football activities for all ages, from children to seniors. www.angelholmsff.se

“Backahill’s commitment is crucial to our continued development. The support helps 850 children and young people to have a safe and meaningful everyday life, where inclusion and community are at the centre. We have a leading role in issues such as public health, integration and inclusion.”

Vejby IF

Vejby IF is a football club in Vejbystrand with a vital youth programme. www.laget.se/vejbyif

“Backahill being our partner creates the opportunity for us to take great social responsibility in Vejbystrand and the surrounding area. We are actively working on sustainability by exchanging experiences with our partners and stimulating each other to work purposefully towards a sustainable future.”

Ängelholms Golfklubb

Ängelholms GK runs golf activities for all ages with golf school, training and competitions. www.angelholmsgk.se

“Thanks to the support of Backahill, we can expand our youth activities. We run the ‘AktivUnga’ project where we offer free Green Card training, free membership and free equipment to 50 young people annually, as well as organise open days where everyone can try golf.”

Drivkraft

Drivkraft is a non-profit organisation that offers mentors for pupils and their parents and provides weekly homework help.

www.drivkraftideell.se

“Thanks to the support of Backahill, Drivkraft is able to offer educational assistance to primary school pupils. Pupils with diagnosed neurodevelopmental disorders and problematic school absenteeism are supported, loneliness of pupils as well as pensioners is reduced, integration and co-operation with municipal bodies is promoted.”

Rögle BK

The ice hockey club Rögle BK is the pride of north-west Skåne in the hockey world. www.roglebk.se

Båstads GIF

Båstads GIF strives to be the area’s sports club and a natural meeting place for everyone, from young people to seniors.

www.bgif.org

“With the help of Backahill’s support, the club can continue to maintain its high quality of training with the equipment and training needed in all the sports offered by Båstads GIF: football, floorball and athletics. Today we employ 500 children and young people and 80 volunteer leaders.”

Dansfabriken

Dansfabriken is a non-profit organisation with 40 dance instructors who teach and spread the joy of dance to 900 members of all ages.

www.dansfabriken.org

“The support from Backahill opens doors to a sense of community among our members, but also for those who are not part of the association. We are proud to have a main partner who believes in our vision to continue fighting for greater accessibility, sense of community and physical activity for all.”

park combined.

www.engelholmshembygdspark.se

Engelholms Volleybollsällskap

EVS wants to make volleyball an enjoyable and fun leisure activity for children, young people and adults. www.engelholmsvolley.se

“Backahill is a great enabler for Rögle BK. We want to be a hub in providing meaningful leisure time for children and young people. Thanks to Backahill, we can do this through our ice hockey and figure skating activities, but also through our social engagement in the community.”

“Hembygdsparken in Ängelholm has 350,000 visitors a year. The park is run with the help of municipal grants, memberships and support from companies such as Backahill, which is helping us to construct Pettson & Findus land and two beehives to demonstrate the sustainability of nature.”

“The collaboration with Backahill means that we can conduct activities with great breadth and commitment, from elite to junior level, and work actively with leadership development and community. We want to contribute to the community with everything from beach cleaning to running Fritidsbanken.”

Sustainable urban development

In Ängelholm and Båstad, where we manage and develop properties, we have the opportunity to influence social development and our urban environments. A prosperous and inclusive society sets the foundation for economic sustainability, which is ultimately positive for Backahill as well.

Sustainable urban development is about health, security, integration, good housing and outdoor environments, but also service provision and access and proximity to transport and recreational activities. We want to make a difference in our region and contribute to positive social development.

Through successful collaboration, we can create entirely new opportunities for ourselves and our customers. We are therefore keen to work in close cooperation with municipalities, businesses, other property owners and other stakeholders. We aim for on-site cooperation with other stakeholders in an organised form.

Sustainable urban development is strongly linked to our community engagement and our partnerships with organisations and the cultural sector.

Backahill is one of the initiators of the Ängelholm Academy association, which was started to bring higher education to Ängelholm. Higher education programmes and a campus in Ängelholm create the right conditions for a socially and economically sustainable region. The campus will be located in Ängelholm’s new district – Kronodalen. The first university programme started in 2023, and in 2024 courses will be offered in newly renovated premises on-site.

We want Kronodalen to be a sustainable district. Our aim is that all developers, together with the municipality, can agree on a comprehensive sustainability programme. This means working together to achieve our vision of a neighbourhood that promotes education, comfort, good health and well-being, as well as conserving nature and the environment at the same time.

Within our Destination development business segment, we also strive for a region that’s attractive and sustainable in the long term. By promoting and enabling shopping, meetings, activities and experiences, and making beautiful environments and nature accessible to more people, we create an attractive region.

In Arenastaden we are helping to create a centre for sports and events in Ängelholm. It’s a place where everyone should feel welcome. We also believe it can help create synergies between the associations and various activities. It also increases the attractiveness of Ängelholm.

Norrvikens trädgårdar offers nature, art and cultural experiences of the highest calibre. Spending time in nature is beneficial for humans. The gardens are also a great meeting place.

Attractive and secure employer

Backahill strives to be an attractive and secure employer. The well-being, commitment and development of our employees has a direct impact on our customers’ good relationship with Backahill, as well as our ability to deliver good results. The overall

objective is to achieve a safe, pleasant and healthy workplace that supports the development of employees and the organisation.

The We are Backahill document is our common compass. It helps us to set the right direction for our work and describes how our vision and values are linked to our internal Code of Conduct.

Backahill is working consciously and systematically to create a good working environment, in terms of both physical and psycho-social matters. The starting point for a safe workplace is our systematic work environment management in line with our work environment policy. Backahill has a vision of zero accidents.

Absences due to illness not only have a negative physical or psychological impact on the employee, but also involve direct and indirect costs. The health and well-being of staff is therefore encouraged in various ways, including through offering a good physical work environment, the generous fitness allowance, free massages and regular health checks.

We encourage collective activities and aspire to make employees visible in our external communication.

Information on activities and common training sessions are organised at regular staff meetings. Training and awareness-raising activities are personalised, with the employee and the company sharing responsibility.

An employee survey was once again conducted in 2023. The response rate was high and the results were better than for 2022.

We want to make a difference in our region and contribute to positive social development.

The survey is conducted annually. Areas for improvement are identified and addressed by taking the appropriate measures.

Backahill does not tolerate any form of discrimination, harassment or victimisation in the workplace. Backahill’s diversity policy describes how we work with issues of discrimination and diversity.

Objectives and positions taken Status

Satisfied employees. ESI ≤ 80. We monitor the Employee Satisfaction Index (ESI) annually. Outcome 2023: 84

Value-creating community engagement. Actively support local associations and culture.

Promote sustainable urban development.

Zero vision: Zero work-related accidents.

Zero tolerance: Against discrimination, harassment or victimisation in the workplace.

An increased share of agreements with associations and organisations that carry out activities and are monitored on the basis of parameters aimed at adding community value.

Ongoing collaboration in projects and initiatives aimed at promoting sustainable urban development.

No reported cases in 2023.

No reported cases in 2023.

Responsible business practices

Responsible business practices are not only a prerequisite for long-term profitability – they also contribute to the sustainable development of society. Backahill supports the ten principles of the UN Global Compact related to human rights, labour, the environment and anti-corruption.

We want to be a company that takes responsibility. We take responsibility for acting ethically and morally and standing up for human rights. As an owner and a partner, we have an important role in influencing others to take responsibility.

Business ethics

In 2023, extensive work was completed to formulate a common vision and set of values for Backahill. This work also provided a basis for the development of an internal code of conduct. The core values, together with the Code of Conduct, form the basis for our staff’s behaviour. It clarifies our position on issues related to human rights, labour, the environment, business ethics and communication. Through our employee survey, we monitor employees’ knowledge of our values and our Code of Conduct.

We are keen for both our own staff and external stakeholders to feel confident about the possibility of identifying any misconduct within the organisation. To facilitate the reporting of any incidents, a whistleblowing policy was introduced during the year, as well as a whistleblowing facility available both internally and externally. No incidents were reported in 2023.

Sustainable ownership

A sustainable economy is a prerequisite for sustainable growth. Profitability and good access to capital are essential to enable us to seize opportunities and make new investments. Profitable growth with a manageable risk approach is a fundamental business principle within the Group.

As an owner and a partner, we have an important role in influencing others to take responsibility.

Backahill has strategic shareholdings in five listed property companies. Together they operate across large parts of Sweden and also in Denmark. Backahill also owns a number of local, unlisted companies.

For us, sustainable ownership means a long-term approach and stability, but also a great responsibility. A prerequisite for long-term and successful investments is that we integrate sustainability aspects into our investments, and especially into our corporate governance.

In 2023, a corporate governance policy was developed. The aim of the corporate governance policy is to establish guidelines and principles for how Backahill should work with ownership issues. This includes guidelines and requirements for sustainability work, among other things. Backahill requires that the companies’ operations and behaviour take into account economic, social and environmental sustainability in all parts of their business.

Backahill requires companies to act with sound business ethics, counteract corruption, comply with all applicable legislation, and work towards an inclusive and equal society.

Backahill will strive to ensure that the Board and

management of the companies identify and proactively address issues of responsibility and sustainability relevant to the business.

Our wholly and majority-owned subsidiaries conduct their own sustainability work and establish their own sustainability governance in the form of strategies, policies and objectives that are relevant to their respective businesses and stakeholders. In practical terms, Backahill supports the wholly-owned subsidiaries in their sustainability work in various ways through training, information and knowledge sharing.

Sustainable supply chain

Backahill strives for healthy and good partnerships with our suppliers.

The construction sector can be particularly vulnerable to bribery and corruption, as well as to shortcomings in social sustainability linked to occupational health and safety, gender equality and labour law conditions. Part of Backahill’s business involves using building and civil engineering contractors for new builds and renovations.

An important part of Backahill’s sustainability work is therefore to take responsibility and to consider sustainability issues when choosing suppliers and contractors. We also want to ensure that all goods and services purchased are produced under sustainable

In 2023, a whistleblowing policy and a whistleblowing facility available both internally and externally were introduced.

and responsible conditions.

In 2023, we introduced a Code of Conduct for suppliers. The Code of Conduct was sent out and signed by a number of selected strategic suppliers and complemented by a self-declaration. As a rule, our Code of Conduct must also be signed by new suppliers in the case of major projects.

The Code of Conduct states that goods and services supplied should be in line with the ten principles of

We are Backahill is our common compass.

Global Compact principles

We support the ten principles of the UN Global Compact. These cover four areas: human rights, labour, environment and anti-corruption.

The principles are based on the UN Declaration of human rights, the ILO fundamental conventions on human rights at work, the Rio Declaration and the UN Convention against Corruption.

the UN Global Compact and the OECD Guidelines for Multinational Enterprises. Laws and regulations must be complied with and operations must be conducted using sound business ethics.

Backahill works primarily with local suppliers. We see benefits in this in terms of favouring local businesses and enabling close relationships. We believe in sharing expectations, knowledge and success stories in order to make a difference for the better, together. In addition, local suppliers bring some positive sustainability aspects in terms of shorter transport journeys and the provision of local products. One challenge is that smaller, local companies do not always have the time and resources to deal with the increased level of sustainability-related demands on administrative processes and reporting.

Sustainable customer relationships

Long-term and close relationships with our customers are key issues for Backahill. We want our residents to thrive and our commercial tenants to develop their businesses as their needs change. We have our own property managers who are responsible for specific properties and we meet our clients regularly.

Whistleblower service

At Backahill, we strive to have an open and transparent workplace, where misconduct does not occur. By offering a whistleblowing service, we enforce this together. We use Visslan’s whistleblowing channel that ensures anonymity and high security.

We want our residents to thrive and our commercial tenants to develop their businesses as their needs change.

We want to collaborate and share our knowledge. In 2022, we introduced Green Leases. The agreements are a platform and basis for ongoing collaboration on sustainability issues and are now offered to all commercial tenants when signing or renegotiating leases.

In 2023, we conducted a customer survey via the supplier Evimetrix. The survey was conducted for both dwellings and our premises. The results were very good and put us in the top tier of the Evimetrix benchmark index. The survey measures residents’ perceptions of the surrounding area, including factors such as perceived safety, outdoor environments, services and transport links.

The survey also included questions on sustainability and aims to understand which sustainability issues are important to our customers and to communicate about our sustainability work. Good scores were also obtained in this area.

The most important sustainability issues for our tenants are protecting the environment and reducing climate impact. Our residential tenants in particular also appreciate our commitment to promoting health and well-being.

One conclusion from the survey is that there is further potential in highlighting how we work with sustainability issues and conducting discussions on how we can work together and help our customers to act more sustainably. We currently share information and knowledge via our website, on social media and via our customer portal. We aim to conduct the customer survey every two years, and intend to identify specific areas for improvement.

Objectives and positions taken Status

Strategic suppliers sign our Code of Conduct and complete a selfdeclaration.

The Code of Conduct was introduced in 2023 and signed by strategic suppliers.

Satisfied customers. Customer satisfaction index (CSI) introduced. CSI survey conducted in 2023. Zero tolerance of corruption. No cases of corruption identified.

EU’s taxonomy regulation

EU TAXONOMY

The EU Taxonomy is a framework for sustainable finance consisting of a common language and criteria to classify which economic activities are environmentally sustainable in order to increase transparency and comparability between various investments.

The aim of the classification is to fulfil the Paris Agreement and the EU’s 2050 climate neutrality target.

For an economic activity to be considered sustainable under the taxonomy, it must contribute significantly to at least one of the following objectives:

• Climate change mitigation

• Adapting to climate change

• Sustainable use and protection of water and marine resources

• Transition to a circular economy with improved waste management and recycling

• Pollution prevention and control

• Protecting biodiversity and healthy ecosystems and restoring degraded ecosystems

At the same time, the activity must not cause “significant harm” to any of the other five objectives. The activity must also meet the minimum requirements of international conventions on labour and human rights, known as “minimum protection measures”.

Backahill and the EU taxonomy

Backahill is not reporting under the 2023 taxonomy, but we have chosen to describe the ways in which we will be affected.

Backahill is engaged in construction (via building contractors) and property management, which means that these activities fall within the scope of the taxonomy. According to our assessment, the economic activities covered by the taxonomy are our

new construction projects, major renovations and the properties we manage.

The proportion of our activities that are environmentally sustainable according to the EU Taxonomy Regulation is to be reported via three financial ratios showing the proportion of turnover, operating expenditure and capital expenditure that is compatible with the taxonomy.

An interpretation document was jointly produced in 2023 by Fastighetsägarna and The Swedish Construction Federation’s taxonomy network. The document lists interpretations on how different requirements for the economic activities can be met.

The activities under which most of our operations are described are 7.1 Construction of new buildings, 7.2 Renovation of existing buildings, and 7.7 Acquisition and ownership of building.

Other activities such as energy efficiency measures (7.3), upgrading of control systems (7.5), installation of charging stations for electric vehicles (7.4) and investments in photovoltaic installations (7.6) may also be relevant for Backahill.

Backahill believes that we currently fulfil the taxonomy’s requirements for minimum safeguards linked to human rights, anti-corruption, transparency regarding tax burden and free competition.

We support the principles of the UN Global Compact and have an internal code of conduct and supplier code of conduct in line with the principles.

We are committed to sound business ethics and comply with all applicable legislation. Backahill has not been legally penalised in any of these areas.

The DNSH criterion means that the activity is classified as green if the activity makes a significant contribution to one or more environmental objectives while causing no significant harm to the other environmental objectives and minimum protection measures are maintained. Backahill has started the work to understand and ensure compliance with the DNSH criterion.

Give back to the community.

Erik Paulsson

Backahill in figures

Our long-term strategy and solid financial base give us the space to act.

Administration report

The Board of directors and CEO of Backahill AB, company registration number 556590-8547, hereby submit the following annual report and consolidated financial statements. The Company’s head office is in Ängelholm.

Company’s accounting currency: Swedish krona (SEK). All amounts are reported in SEK thousands unless stated otherwise. As a result of this differences due to rounding up or down can occur.

Operations

The operations consist of consulting services within finance and management, as well as the management of properties and securities.

Significant events during the financial year

The Group continued to maintain a high level of activity in terms of new developments and made decisions regarding acquisitions and divestments of companies in order to streamline its holdings.

In 2023, the company celebrated its 25th anniversary.

Management of the Company’s strategic securities holdings in 2023 generated a good operating profit and strong cash flow. The Backahill Group still owns more than 10% of the shares in Diös Fastigheter AB (publ), Fabege AB (publ), Catena AB (publ), Wihlborgs Fastigheter AB (publ) and Brinova Fastigheter AB (publ).

Subsidiary Backastad AB invested in the Slättö Value Add II fund and acquired shares in Neptunia Invest AB.

Subsidiary Backahill Invest AB acquired Epax Invest AB.

Subsidiary BLLB Fastigheter AB participated in a new share issue in LBF Fastigheter AB.

Backahill Bjäre AB acquired the company Norrviken Utveckling AB, and acquired additional shares in Båstadtennis & Hotell AB, owning 43% of the company at the end of the year.

The new construction on the Fågelsången 3 property, owned by Backahill Bostäder AB, was completed in February and the tenants moved in in three stages. In April, the renovation by Backahill Cityfastigheter AB of ÄHLM Market’s premises was completed and the new meeting place in Ängelholm city centre opened.

In June, Kronodalen Utveckling AB took possession of the property where Södra sjukhuset in Ängelholm was previously located. 50% of this company was then sold in December to an external party, which will be involved in developing this new district in Ängelholm.

Backahill Fastigheter AB acquired four companies from Brinova Fastigheter AB, with transfer taking place in September. The companies were Backahill Körsbärsträdet 5 AB, Backahill Körsbärsträdet 6 AB, Backahill Örnen AB and Backahill Karlslund 1 AB, all of which own properties in Ängelholm.

Backahill Båstad AB has sold its subsidiary Backahill Jungfrun 1 AB to an external party. Company Backahill Evald 3 AB was formed and subsequently acquired the Evald 3 property in Båstad. Subsidiary Backahill Akvarellen 19 AB acquired the Argus 6 property in Båstad. Another subsidiary of Backahill Båstad AB, Backahill Båtsmannen 6 AB, created a new company, Backahill Sollyckan AB, which is planning a housing cooperative association (Brf) project in Båstad.

GRAM Group AB and its hotel operating subsidiaries have enjoyed high booking volumes, with many people choosing to stay in Sweden and continued high demand from Danish guests. In 2023, investments have been made in the continued development of the operations and in the environment, so in some periods, parts of the operations have been closed to implement the changes as quickly as possible. This has had a negative financial impact on the year but is seen as a good investment for the future.

Foodhills AB continues its early development phase in producing frozen green harvested peas for human consumption and dry harvested peas as input for further processing. The company will require capital and liquidity injections on an ongoing basis to meet its running costs and planned investments.

Significant events after the end of the financial year

The first phase of the development of a campus by the company Kronodalen Utveckling AB has begun.

Brf Sollyckan is established and project planning and sales have started for Brf Sollyckan in Båstad.

Backahill Utveckling AB formed the new company Backahill Göta AB.

Expected future development as well as significant risks and uncertainty factors

Backahill will continue to be active and participate in the development of north-west Skåne and the Bjäre Peninsula. A strong balance sheet and stable cash flow means the Group is well-equipped for interesting projects in the future.

Profitable growth with manageable risk-taking is a fundamental business principle within the Group. The defined risk areas of business environment risks, operational risks and financial risks are managed continuously as an integral part of the business and with a clear strategy for each risk area.

Financial risk management

Interest rate risk

Interest is the company’s largest individual cost item. The Company has long-term credit facilities with set conditions which at present include a three-month fixed interest term.

Credit risk

Current credit facilities amount to SEK 1,996 million, of which SEK 1,416 million was utilised as at 31 December 2023.

Access to capital via loan agreements is covered by set terms and the Company is well within the limits of these.

Liquidity risk

In recent years, the Company has reported positive cash flow from operating activities.

Ownership

Backahill is fully owned by Sara Karlsson and Svante Paulsson.

Multi-year review

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

Changes in equity

Proposed appropriation of profits

The Board of directors proposes that the profit at the Company’s disposal, comprising (SEK):

Dividend at extraordinary general meeting on 15/06/2023 -300,000,000 Loss for the year -165,253,488 3,076,369,124 be appropriated as follows: Carried forward 3,076,369,124 3,076,369,124

Consolidated income statement

Consolidated balance sheet

Consolidated statement of cash flows

Parent Company income statement

Parent Company balance sheet

4,855,488

Parent Company statement of cash flows

Note 1 Accounting and measurement principles

General information

The annual report and consolidated financial statements are prepared in accordance with the Swedish Annual Accounts Act and BFNAR 2012:1 Annual reports and consolidated financial statements (K3).

The Parent Company and the Group apply the same accounting principles unless otherwise stated below.

Translation of foreign currency

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

Revenue recognition

Revenues have been admitted to the fair value of the consideration received or to be received and are recognised to the extent that it is likely that the financial benefit will be allotted to the Company and the revenues can be reliably calculated.

Rental income is recognised in the period of the lease.

In the case of the sale of goods, income is normally reported as income once the significant benefits and risks associated with ownership of the goods have been transferred from the Company to the buyer.

Remuneration in the form of interest or dividends is reported as income when it is likely that the Company will receive the financial benefits associated with the transaction and when the income can be calculated reliably.

Consolidated financial statements

Accounting principles

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

Consolidation method

The consolidated financial statements were prepared according to the acquisition method. This means that the identifiable assets and liabilities of acquired companies are reported at market value according to established acquisition analysis. If the acquisition value of the business exceeds the estimated market value of the expected net assets according to the acquisition analysis, the difference is reported as goodwill or buildings and land or another identified asset.

Associated companies are companies in which the Company has a significant but non-controlling influence. Influence is usually considered to be significant when the Company owns at least 20% but no more than 50% of the votes in another company.

Change in composition of the Group

The following companies have been added to the Group through acquisitions:

Backahill Bjäre AB acquired all the shares in Norrviken Utveckling AB.

Backahill Invest AB acquired all the shares in Epax Invest AB.

Backahill Fastigheter AB acquired Backahill Körsbärsträdet 5 AB, Backahill Körsbärsträdet 6 AB, Backahill Karlslund AB and Backahill Örnen AB.

Backahill Båstad AB acquired Backahill Evald 3 AB and Backahill Sollyckan AB.

Kronodalen Utveckling AB was acquired during the financial year but half of the shares have since been sold, which is why the company is an associated company at the end of the financial year.

The following companies were sold:

Backahill Fastigheter sold Backahill Jungfrun 1 AB during the year.

Subsidiaries

In addition to the Parent Company, the consolidated financial statements comprise all companies in which the Parent Company has, directly or indirectly, more than 50% of the vote or otherwise holds the controlling influence and thus has the right to design the company’s financial and operational strategies in order to obtain economic benefits.

A subsidiary’s income and costs are included in the consolidated financial statements from the date of acquisition until the date when the Parent Company ceases to have a controlling influence over the subsidiary.

Non-controlling interest is the part of the subsidiary’s net income and net assets in the consolidated financial statements attributable to equity instruments that are not owned by the Parent Company, either directly or indirectly through the subsidiaries.

Non-controlling interests are reported in the consolidated balance sheet as a special item within the Group’s equity. The report is based on the Group as a single economic unit according to the economic unit approach. All of the assets that the Group has controlling influence over are included in the consolidated balance sheet, including those that are partly-owned by other owners. Non-controlling interest’s share of profits after tax are recognised separately as non-controlling interests.

Acquisitions and divestments of non-controlling interests are reported under equity.

Recognition of associated companies

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

Shares in the associated company’s profit after tax are reported on a separate line and affect the Group’s operating profit.

Intra-group transactions

Intra-group receivables and liabilities, transactions between group companies and unrealised gains are eliminated in full. Unrealised losses are also eliminated unless the transaction corresponds to an impairment loss.

Changes in intra-group profit in the financial year are eliminated in the consolidated income statement.

Goodwill

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

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

Accounting principles for individual balance sheet items

Intangible assets

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

Fixed assets

Tangible and intangible assets are recognised at cost less accumulated depreciation according to plan and any impairment.

Depreciation is on a straight-line basis over the expected useful life taking into account any significant residual value. The following depreciation periods are applied:

Intangible assets

Capitalised expenditure for development work 5 years

Goodwill 10 years

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

Tangible assets

Buildings

Tenant fit-outs

Land improvements

Improvement costs on third-party property

4–100 years

3–15 years

5–20 years

years

Plant and machinery 5–25 years

Equipment, tools, fixtures and fittings

Investment properties

3–50 years

Investment properties are held to generate rental income and/ or capital appreciation. The term investment property includes buildings, land, and land improvements.

Investment properties are reported in the balance sheet to amounts corresponding to the cost of the acquisition or construction of the property (acquisition value), taking into account depreciation, write-downs and revaluations after acquisition.

Component classification

Tangible fixed assets have been divided into components where the components are significant and where the components have substantially different useful lives. When a component of a fixed asset is replaced, any remaining portion of the old component is scrapped and the new component’s cost is capitalised. Costs for ongoing repairs and maintenance are recognised as expenses.

The Group reports major tenant fit-outs according to the expanded definition of repairs. The acquisition value of tenant fitouts is distributed and expensed over 3 to 15 years. Values that have not been expensed are reported under Land and buildings in the balance sheet, and amounts expensed during the year are reported as depreciation in the income statement.

Borrowing costs

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

Financial instruments

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

Shares in subsidiaries

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

Other securities held as fixed assets

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

Short-term investments

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

Trade receivables/Current receivables

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

Borrowings and trade payables

Borrowings and trade payables are initially recognised at cost less any transaction costs.

Offsetting financial assets and financial liabilities

A financial asset and a financial liability are offset and the net amount recognised in the balance sheet only when an entity has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to dispose of the asset and settle the liability simultaneously.

Impairment testing of financial assets

On each balance sheet date the Company assesses whether there are indications of any impairment need for any of the financial assets. Impairment is recognised if the decline in value is deemed to be permanent and is tested individually.

Cash and cash equivalents

Cash and cash equivalents consist of cash and bank balances as well as short-term investments with an original term of up to three months.

Lease agreements

Parent company

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

The Company reports all leases, both financial and operational, as operating leases. Operating leases are reported as a cost on a straight-line basis over the term of the lease.

Group Finance leases result in rights and obligations being recognised as assets and liabilities in the balance sheet. The asset and liability are measured at the lower of the fair value of the asset and the present value of the minimum lease payments. Expenditure directly attributable to the lease is added to the value of the asset. Lease payments are allocated to interest and amortisation using the effective interest method. Variable charges are recognised as an expense in the period in which they are incurred. The leased asset is depreciated on a straight-line basis over the lease term.

Inventories

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

Income tax

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

Current tax

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

Deferred tax

Deferred tax is income tax for future financial years as a result of past events. It is reported according to the balance sheet method. According to this method, deferred tax liabilities and deferred tax assets are reported on temporary differences arising between the book value and tax value of assets and liabilities as well as for other

tax deductions or deficits.

Deferred tax assets are netted against deferred tax liabilities only if they can be paid with a net amount. Deferred tax is calculated on the basis of the current tax rate on the balance sheet date. The effects of changes in current tax rates are recognised in the period when the change is statutory. Deferred tax assets are reported as financial fixed assets and deferred tax liabilities are reported as provisions.

Deferred tax assets relating to loss carry forwards or other future tax deductions are recognised to the extent that it is likely that the deduction can be offset against future taxable profits.

Due to the relationship between accounting and taxation, deferred tax liabilities attributable to untaxed reserves are not reported separately.

Provisions

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

Remuneration to employees

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

Remuneration to employees after termination of employment

The Company offers both defined contribution and defined benefit pension plans. The reporting of defined benefit pension plans is in accordance with the simplification rules.

The Company has defined-benefit pension plans where a pension premium is paid, and it reports these plans as defined contribution plans in accordance with the simplification rule in BFNAR 2012:1 (K3).

The Company has defined benefit plans financed through Alecta, which are reported as defined contribution plans, as there is insufficient information to report the plans as defined benefit plans.

The Company has pension obligations which are solely dependent on the value of the capital insurances of the Company and the Group. Capital insurances are reported at cost as financial fixed assets. The pension obligation is reported as a provision at the same value as the carrying amount of the capital insurance.

Government grants

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

Group contributions

Paid and received group contributions are accounted for as appropriations.

Statement of cash flows

The statement of cash flows is prepared using the indirect method. Reported cash flow includes transactions involving receipts or disbursements only.

Besides cash, the Company classes available balances at banks and other credit institutions and short-term cash investments that are listed on a marketplace and have a maturity of less than three

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

Key indicator definitions

Net sales

The business’s main revenue, invoiced costs, incidental revenue and revenue corrections.

Profit after financial items

Profit after financial income and expenses.

Total assets

The Company’s collective assets.

Equity/assets ratio, %

Adjusted equity (equity and untaxed reserves less deferred tax) as a percentage of total assets.

Number of employees

Average number of employees during the financial year.

Estimations and assessments

The preparation of book closing and application of accounting policies are often based on the management’s judgments, estimates and assumptions, which are deemed reasonable at the time that they are assessed. The estimations and assessments are based on historical experience and a number of other factors, which are considered to be reasonable under the current circumstances. The results of these are used to determine the reported values of assets and liabilities, that are not otherwise readily apparent from other sources. The actual outcome may differ from these estimates.

Estimations and assessments are reviewed regularly.

According to the management, the material judgements regarding the accounting policies applied and the sources of uncertainty in estimates are primarily related to the estimated useful life of the different items under Land and buildings.

The tax loss in the Parent Company amounts to SEK 460,120 thousand. This corresponds to a deferred tax asset of SEK 94,785 thousand, but in order to remain prudent no deferred tax asset is recognised.

The tax loss in the Group amounts to SEK 607,507 thousand. This corresponds to a deferred tax asset of SEK 125,146 thousand, but in order to remain prudent no deferred tax asset is recognised.

Note 2 Net sales breakdown

Note 3 Leasing agreements, lessor GROUP

The year’s leasing rental income relating to lease contracts amounts to SEK 189,470 thousand (SEK 154,528 thousand).

The year’s variable income relating to leasing contracts amounts to SEK 16,209 thousand (SEK 13,491 thousand).

Claims relating to future leasing payments, under non-cancellable leases, fall due as follows:

than one year but less than five years

than five years 349,265 341,922 862,185 724,279

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

Note 4 Government grants

Note 5 Leasing agreements, lessee

GROUP

The year’s leasing costs relating to lease contracts amounts to SEK 94,809 thousand (SEK 81,892 thousand).

The year’s variable costs relating to leasing contracts amounts to SEK 7,168 thousand (SEK 168 thousand).

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

Within one year

More than one year but less than five years

Refers to rental contracts for premises, leasing of machines, cars, as well as equipment and bills of exchange for hotel operations. The amounts are stated in nominal values.

PARENT COMPANY

The year’s leasing costs relating to leasing contracts amount to SEK 3,340 thousand (SEK 2,604 thousand).

The year’s variable income relating to leasing contracts amounts to SEK 159 thousand (SEK 145 thousand).

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

-3,108

Note 7 Employees and personnel costs

than one year but less than five years

-1,968 More than five years

0

-5,076

Refers to rental contracts for premises as well as the leasing of cars and office machines. The amounts are stated in nominal values.

Note 6 Remuneration to auditors

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

Part of the audit is invoiced to the Parent Company and covers most Group companies.

Note 7 cont.

Gender distribution among senior executives

of women on the Board of directors

of men on the Board of directors

Proportion of women among other senior executives

Proportion of men among other senior executives

Severance pay agreements

The CEO and the Company have a mutual notice period of 6 months. In case of termination by the Company, the CEO is entitled to severance pay equivalent to 12 months of salary.

Note 8 Result from participations in group companies

Note 10 Result from other

Note 11 Other interest income and similar

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

Note 12 Interest expense and similar profit/loss items

Note 14 Capitalised expenditure for development work and similar

Note 16 cont.

Note 15 Goodwill

Property holdings also include properties with no tax assessment value.

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

Note 17 Tenant fit-outs

Note 16 Land and buildings

Note 18 Plant and machinery

Note 20 Construction in progress and advance payments for tangible assets

(SEK 0 thousand).

Note 19 Equipment, tools, fixtures and fittings

Note 21 Shares in associated companies and jointlycontrolled companies

Note 22 Specification of participations in associated companies and jointly-controlled companies

Bengtsson & Nobel & Olofsson Fastighets AB

- Båstad Krog & Spa AB

Brinova Fastigheter AB (publ)* 556840-3918

Catena AB (publ)* 556294-1715

Sälen Centrum HB 916581-9906

Lima Timmerhus AB 556730-8449

Foodhills Fastighet AB* 559122-6617

Arenabolaget i Ängelholm AB 556667-9022

- Backerhof 2

AB Himmeslövs havsbad

Brinova Fastigheter AB (publ)* 22.07% 39.25%

*Equity and Profit/loss refers to the Group’s equity and profit/loss. For indirectly owned associated companies in the Brinova Fastigheter AB, Catena AB and Foodhills Fastighet AB groups, please refer to the respective companies’ annual reports.

Note 23 Shares in associated companies and jointly-controlled companies

The market value of the above shareholding on submission of the annual report is SEK 6,217,811 thousand. PARENT COMPANY

Note 25 Other long-term securities held as

The market value on the date of submission of the annual report of the above holdings was SEK 444,353 thousand.

Note 24 Receivables from associated companies and jointly-controlled companies

COMPANY

Note 26 Shares and participations GROUP

Fastigheter AB (publ)

The market value of the above shareholding on submission of the annual report is SEK 9,980,616 thousand.

PARENT COMPANY

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

Note 27 Deferred tax assets

Note 29 Other long-term receivables

Note 28 Deferred tax assets

COMPANY

Note 30 Prepaid expenses and accrued income

Note 32 Number of shares and quota value

Note 33 Revaluation reserve

Note 31 Overdraft facilities

Note 34 Equity method reserve

Note 35 Provisions

Note 36 Long-term liabilities

Note 37 Accrued expenses and

Note 38 Interest and dividends

Note 39 Acquisition of subsidiaries GROUP

The following companies were acquired during the year:

Norrviken Utveckling AB was acquired on 1 October 2023. The company carries out development activities, organises events and manages property.

Epax Invest AB was acquired on 1 October 2023. The company’s activities consist of trading in securities and securities and property management.

Backahill Körsbärsträdet 5 AB, Backahill Körsbärsträdet 6 AB, Backahill Karlslund AB and Backahill Örnen AB were acquired on 1 September 2023. The companies are engaged in property management.

Backahill Evald 3 AB was acquired on 28 June 2023 and conducts property management and Backahill Sollyckan AB was acquired on 16 November 2023 – the company is newly formed and does not yet conduct any operations. Kronodalen Utveckling AB was acquired on 31 October 2023 and conducts property management.

The following were acquired last year: Backahill Invest AB on 26 January 2022, Bjäre Aviation AB on 1 July 2022, and Backastad Nöthagen AB on 31 January 2022. Backahill Invest AB manages securities and property. Bjäre Aviation AB is newly formed and has not had any activity. Backastad Nöthagen AB conducts property management.

GroPro AB and Foodhills AB were also acquired during the year on 10 January 2022 and 20 December 2022 respectively. GroPro AB produces and distributes vegan food products. Foodhills AB grows and sells frozen green peas. For further information, see Note 44.

Note 39 cont.

Note 40 Cash and cash equivalents

Note 42 Appropriations

Note 41 Intra-group purchases and sales

Purchases during the year include intra-group purchases totalling SEK 2,677 (2,064) thousand. Sales during the year include intra-group sales totalling SEK 46,632 (44,716) thousand.

Note 43 Participations in group companies

1,606,832 1,836,387

Note 44 Specification of participations in group companies

PARENT COMPANY

Name

Backahill Bjäre AB

- Norrviken Utveckling AB

- MMBA Holding AB

- GRAM GROUP AB

- Restaurang & Hotell Skansen i Båstad

Domicile

114,050 556866-5920 Ängelholm

559127-8311 Båstad

556950-5570 Ängelholm

559118-3073 Båstad

556599-3515 Båstad

Båstad AB 0

- Torekov Hotell Resort AB

- Hotell Riviera Strand AB

- Hamnplats 3 AB

- Huset vid Stranden AB

- Pepe’s Bodega AB

Backahill Förvaltning AB

Backahill Fastigheter AB

- Fastighets AB De-Ba

- Backahill Posthuset KB

- Fastighets AB Förmannen 6

- Backahill Båstad AB

- H.U.S Fastigheter i Båstad AB 100% 1,000

- Backahill Apelryd AB 100% 50,000

- Backahill Hinden i Båstad AB

- Backahill Båtsmannen 6 AB

- Backahill Akvarellen 19 AB 100%

- Backahill Evald 7 i Båstad AB

- Claerence Village AB

- Hamnbacken i Båstad AB

- Backahill Gamlegården AB

- Backahill Evald 3 AB

- Backahill Torekov AB

- Backahill Taktäckaren AB

- Backahill Sandvångsgatan AB

- Backahill Sollyckan AB

- Backahill Steglitsen i Ängelholm KB

- Backahill Tingstorget KB

556801-9763 Båstad

556977-5603 Båstad

556977-5454 Båstad

556795-5868 Båstad

556531-5404 Båstad

556216-9077 Ängelholm

556452-1861 Ängelholm

556594-4542 Ängelholm

969692-9091 Ängelholm

559000-0492 Ängelholm

556637-7031 Ängelholm

556668-0467 Båstad

559064-1501 Båstad

50,000 0 559096-6114 Båstad

559118-8536 Båstad

556793-8211 Båstad

556479-1886 Båstad

100,000

50,000

556710-3469 Båstad

556720-9241 Malmö

559124-2382 Båstad

559430-6564 Ängelholm

556531-2344 Ängelholm

559075-2514 Ängelholm

556202-3183 Ängelholm

559445-7326 Ängelholm

969630-2638 Ängelholm

969630-5367 Ängelholm

- Backahill Bostäder AB 100% 1,000 0 556664-2376 Ängelholm

- Backahill Cityfastigheter AB

- Backahill Hotellfastigheter AB

- Backahill Vilhelmsfält AB

- Backahill Norregården AB

- Backahill Vegeholm AB

- Backahill Förmannen 3 AB

- Backahill Loglängan AB

- Backahill Körsbärsträdet 5 AB

- Backahill Körsbärsträdet 6 AB

556725-0476 Ängelholm

556965-7223 Ängelholm

556810-6164 Ängelholm

556527-9766 Ängelholm

559093-4518 Ängelholm

556714-1568 Ängelholm

559232-3553 Ängelholm

556985-8318 Hässleholm

556992-1389 Ängelholm

PARENT COMPANY

- Backahill Karlslund AB

- Backahill Örnen AB

Backahill Projektutveckling AB

- BR i Gustavsberg AB

Backahill Holding AB

- Backastad Omsorg AB

- Backastad Silvergården AB

- Backastad Graninge Holding 1 AB

- Backastad Graninge 1 AB

- Backastad Graninge 2 AB

- Backastad Graninge 3 AB

- Backastad Graninge Holding 2 AB

- Backastad Graninge 5 AB

- Backastad Graninge 6 AB

- Backastad Graninge 7 AB

- Backastad Graninge 8 AB

- Backastad Graninge Holding 3 AB

- Backastad Graninge 9 AB

- Backastad Graninge 11 AB

- Backastad Graninge 12 AB

Backahill Inter AB

Backastad AB

- Backastad Kavalleriet AB

- Backastad Projekt AB

- Backastad Nöthagen AB

Backahill Skåne AB

PMSA Aktiesparklubb AB

Backahill Utveckling AB

- Hansan AB

- Böske Backe AB

- Böske Backe Invest AB

- Projekt Gustavsberg AB

- Backahill DABS AB

- S&E Sport&Evenemang Holding AB

- GroPro Solution AB

- GroPro AB

- Ängelholm Market AB

- BLLB Fastigheter AB

- Bjäre Aviation AB

- Foodhills AB

Backahill Invest AB

- Epax Invest AB

556825-6225 Ängelholm

556985-8300 Hässleholm

556923-9477 Ängelholm

556928-0141 Stockholm

556891-0524 Ängelholm

556922-7514 Ängelholm

556922-7324 Ängelholm

559113-8507 Ängelholm

559113-8549 Ängelholm

559113-8531 Ängelholm

559113-8523 Ängelholm

559113-8499 Ängelholm

559113-8572 Ängelholm

559113-8580 Ängelholm

559113-8556 Ängelholm

559113-8564 Ängelholm

559113-8481 Ängelholm

559113-8614 Ängelholm

559113-8598 Ängelholm

559113-8606 Ängelholm

1,000 1,028,720 556592-5913 Ängelholm

556639-5579 Ängelholm

559313-5949 Ängelholm

556922-7506 Ängelholm

559354-9974 Ängelholm

556953-0081 Ängelholm

559076-0905 Ängelholm

556688-6791 Ängelholm

556233-6304 Stockholm

556617-3554 Båstad

556858-4568 Ängelholm

556928-0125 Stockholm

559076-0939 Ängelholm

556774-5202 Ängelholm

559349-7018 Ängelholm

559268-6041 Bjuv

559056-3754 Ängelholm

559259-6828 Ängelholm

559366-7636 Ängelholm

559097-6501 Bjuv

559346-2178 Ängelholm

559346-2160 Ängelholm

Note 45 Receivables from Group companies

COMPANY

Note 46 Appropriation of the profit or loss

COMPANY

Proposed appropriation of profits

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

Note 48 Pledged assets

Other pledged assets and collateral

Note 47 Contingent liabilities

Contingent liabilities Liable as a partner in

The Group also has a capital guarantee vis-à-vis an

COMPANY

Note 49 Significant events after the end of the financial year

The first phase of the development of a campus by the company Kronodalen Utveckling AB has begun.

Brf Sollyckan is established and project planning and sales have started for Brf Sollyckan in Båstad. Backahill Utveckling AB formed the new company Backahill Göta AB.

Svante Paulsson Chairman

Sara Karlsson

Ängelholm, 31 May 2024

Bo Forsén

Lennart Mauritzson CEO

Our audit report was submitted on 31 May 2024 Ernst & Young AB

Jan Litborn

Henrik Nilsson Authorised Public Accountant

Audit Report

To the Annual General Meeting of Backahill AB, company registration number 556590-8547

Report on the annual report and the consolidated financial statements

Opinion

We have carried out an audit of the annual report and consolidated financial statements for Backahill AB for the financial year 01/01/2023–31/12/2023. The Company’s annual report and consolidated financial statements are included on pages 109–141 of this document.

In our opinion, the annual report and consolidated financial statements were prepared in accordance with the Swedish Annual Accounts Act and gives a true and fair picture in all material respects of the Parent Company’s and the Group’s financial position as of 31 December 2023, and of their financial performance and cash flows for the year, according to the Swedish Annual Accounts Act. The administration report is consistent with the other parts of the annual report and the consolidated financial statements.

We therefore recommend that the Annual General Meeting adopt the income statement and balance sheet for the Parent Company and the Group.

Basis for our opinion

We have carried out the audit in accordance with the International Standards on Auditing (ISA) and accepted auditing standards in Sweden. Our responsibilities under these standards are described in more detail in the Auditor’s responsibility section. We are independent in our relationship to the Parent Company and the Group according to accepted accounting standards in Sweden and have furthermore completed our professional ethical responsibility according to these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate as a basis for our opinion.

Information in addition to the annual accounts and consolidated accounts

The Board and the CEO are responsible for the additional information. This information can be found on pages 1–108 and 144–148.

Our opinion on the annual accounts and consolidated accounts does not cover this information, and we do not express any form of audit opinion on this information.

As part of our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In performing this work, we also consider the knowledge we have otherwise obtained during the audit and assess whether the information appears to be materially misstated.

If, based on the work carried out in respect of this information, we conclude that the additional information contains material misstatement, we are required to report this. We have nothing to report in this respect.

The Board of directors’ and CEO’s responsibility

It is the responsibility of the Board of directors and the CEO to prepare an annual report and consolidated financial statements which give a true and fair picture in accordance with the Swedish Annual Accounts Act. The Board of directors and the CEO are also

responsible for the internal controls that are considered necessary to prepare an annual report and consolidated financial statements that are free from material misstatement, whether this is due to fraud or error.

When preparing the annual report and consolidated financial statements, the Board and CEO are responsible for assessing the Company’s and the Group’s ability to continue as a going concern. They indicate, where appropriate, conditions that may affect the ability to continue operations and to use the going concern assumption. However, the going concern assumption is not applicable if the Board and CEO intend to liquidate the Company, discontinue operations or have no realistic alternative to doing either of these.

Auditor’s responsibility

Our goal is to obtain reasonable assurance that the annual report and consolidated financial statements as a whole do not contain any material misstatements, whether due to fraud or error, and to submit an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit performed in accordance with ISA and accepted accounting standards in Sweden will always detect a material error if there is one. Misstatements may occur as a result of fraud or error and are considered to be material if individually or together they can reasonably be expected to affect the financial decisions that users of the annual report and consolidated financial statements make. As part of an ISA audit, we use our professional judgment and have a professionally sceptical attitude throughout the audit. In addition, we:

• identify and assess the risks of material misstatements in the annual report and consolidated financial statements, whether these are due to fraud or error, and design and perform audit procedures, based on these risks among other things, and obtain audit evidence that is sufficient and appropriate to form the basis for our opinion. The risk of not detecting a material misstatement due to fraud is higher than that of a material misstatement due to error, as fraud may include acts of collusion, forgery, deliberate omissions, incorrect information or breaches of internal control. gain an understanding of the aspect of the Company’s internal control that is relevant to our audit in order to design audit procedures that are appropriate to the circumstances, but we do not comment on the effectiveness of internal control.

• evaluate the appropriateness of the accounting principles used and the reasonableness of the Board and CEO’s estimates in the report and accompanying information.

• draw conclusions about the suitability of the Board and CEO using the going concern assumption when preparing the annual report and consolidated financial statements. We also draw a conclusion, based on the obtained audit evidence, on whether there are any significant material uncertainty factors regarding any events or circumstances that could lead to significant doubts about the Company’s and Group’s ability to continue operations. If we conclude that there is a material uncertainty factor, we must draw

attention to the disclosures in the annual report and consolidated financial statements which lead to the material uncertainty factor in our audit report or, if such information is insufficient, modify the statement in the annual report and consolidated financial statements. Our conclusions are based on the audit evidence obtained up until the date of the audit report. However, future events or circumstances may mean that a company or a group is no longer able to continue as a going concern.

• evaluate the overall presentation, structure and content of the annual report and consolidated financial statements, including the disclosures, and check that the annual report and consolidated financial statements reflect the underlying transactions and events in a manner that gives a true and fair view.

• obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to make a statement regarding the consolidated financial statements. We are responsible for the governance, supervision and execution of the Group audit. We are solely responsible for our statement.

We must inform the Board of the planned scope and focus of the audit as well as the timing of it, in addition to other things. We must also inform them of any significant observations found during the audit, including any significant shortcomings in the internal control that we identify.

Report on the other requirements under law and provisions

Opinion

In addition to our audit of the annual report and consolidated financial statements, we have performed an audit of the proposed appropriation of the profit or loss as well as the Board of directors’ and the CEO’s administration of Backahill AB for 01/01/2023–31/12/2023.

We recommend that the Annual General Meeting distribute the profit according to the proposal in the administration report and discharge the Board members and the CEO from liability for the financial year.

Basis for our opinion

We have carried out the audit in accordance with accepted accounting standards in Sweden. Our responsibilities under these standards are described in more detail in the Auditor’s responsibility section. We are independent in our relationship to the Parent Company and the Group according to accepted accounting standards in Sweden and have furthermore completed our professional ethical responsibility according to these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate as a basis for our opinion.

The Board of directors’ and CEO’s responsibility

The Board of directors is responsible for the proposed appropriation of the profit or loss. In the case of a proposed dividend, this includes an assessment of whether the dividend is justified in view of the requirements that the Company’s and the Group’s business plan, the scope and risks place on the size of the Parent Company’s and Group’s equity, consolidation needs, liquidity and general position.

The Board is responsible for the Company’s organisation and the management of the Company’s business. This includes, inter alia, continually assessing the Company’s and Group’s financial situation and ensuring that the Company’s organisation is designed so that the accounting, management of funds and the Company’s financial business in general is controlled in a satisfactory manner. The CEO is responsible for the day-to-day management in accordance with the Board’s guidelines and instructions and takes the necessary steps to ensure that the Company’s accounts are compiled in accordance with legislation and to ensure the proper management of funds.

Auditor’s responsibility

Our goal of the management audit, including our statement on discharge from liability, is to obtain audit evidence in order to be able

to assess with reasonable certainty whether any Board member or the CEO has in any material respect: undertaken any action or is guilty of any misconduct that may lead to liability for compensation by the Company, or • has otherwise acted in a way that contravenes the Swedish Companies Act, the Swedish Annual Accounts Act, or the Articles of Association.

Our goal regarding the audit of the proposed appropriation of the Company’s profit or loss, and therefore our statement about this, is to assess with reasonable assurance whether the proposal is in accordance with the Swedish Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit performed in accordance with accepted accounting standards in Sweden will always detect actions or omissions that may cause liability to compensation from the Company or that proposed appropriation of the Company’s profit or loss is not in accordance with the Swedish Companies Act.

As a part of an ISA audit in accordance with accepted accounting standards in Sweden, we use our professional judgment and have a professionally sceptical attitude throughout the audit. The review of the management and the proposed disposal of the company’s profit or loss are mainly based on the audit of the accounts. The choice of which additional audit measures we perform is based on our professional assessment on the basis of risk and materiality. This means that we focus the audit on the actions, areas and conditions that are essential to the business, and where any departures and violations would have particular importance to the Company’s situation. We go through and test decisions, the basis for decisions, actions taken and other matters relevant to our statement on discharge from liability. As a basis for our opinion on the Board of directors’ proposal for the appropriation of the profit or loss, we have assessed whether the proposal complies with the Swedish Companies Act.

Ängelholm, 31 May 2024

Ernst & Young AB

Henrik Nilsson Authorised Public Accountant

Board of directors

Erik Paulsson Honorary Chairman

Bo Forsén Board member

Jan Litborn Board member

Svante Paulsson Chairman

Sara Karlsson Board member

Management team

Annette Bergenhem Financial manager

Lennart Mauritzson Group CEO/President

M agnus Swärdh CFO

Jerry Zander Property Director

Fredrik Henrysson Property and Bjäre project

Sara Karlsson Owner

1998 - 2023

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