Annual report Backahill 2022

Annual report 2022

The Science Village district is emerging between the Max IV and ESS research facilities at Brunnshög in northeast Lund, Sweden. The Space property, a Wihlborgs construction project, is pictured at the bottom on the right.

We are a family business that owns, develops and manages properties. Our business practices are driven by a strong entrepreneurial spirit. We have a clear agenda to be a positive force for change in the communities we are part of, and many of our endeavours are straight from the heart.

The company’s roots are deeply anchored in the north-west of Skåne. The head office is located in Ängelholm, with local offices in Båstad and Stockholm. Today, we are active throughout Sweden, but also in the Nordic region, through both our own companies and ownership interests in some of Sweden’s leading property companies.

We are a stable, long-term and committed player in the community, committed to contributing to communities in which people are happy to reside, work and live. When others see a wasteland or a run-down property, we see new opportunities that we have the power to realise thanks to our solid financial platform. Our strategic shareholding gives us the freedom to act.

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

Our operations are divided into three business areas:

Property development

We buy, develop and manage residential, commercial and community properties.

Destination development

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

Invest

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

Long-term strategy brings benefits in times of uncertainty

Despite a tumultuous and highly transformative year, we look back at what was ultimately a successful 2022 for us. We continued to take responsibility as an active social partner that makes a difference, we concentrated on improving in our focus areas and we also managed to turn several of our visions into reality.

The year got off to a dramatic start. When we finally saw the end of the pandemic in early 2022, the shadow of war swept over the world as Russia invaded Ukraine and we found ourselves in an even more challenging situation. The changing geopolitical situation created uncertainty that we all have to face. Interest rates skyrocketed, inflation increased dramatically, energy prices fluctuated wildly, and on top of that, stock prices fell, especially in the property sector. Despite this, Backahill stands in a fortunate position. We have a low debt burden, access to capital and good relationships with our banks. This makes us ready to find and develop new opportunities.

We note positive progress in our property development – we have made a number of property acquisitions during the year, completed several construction projects and also started new projects. In March, it was confirmed that we are buying Hälsostaden’s part of the southern hospital area in Ängelholm, an area we have chosen to call Kronodalen. The purchase means that we can proceed with the realisation of Campus Ängelholm. In December, we acquired Hinden 6, a property in central Båstad that is intended to serve as accommodation for our employees, primarily in our hotel and restaurant operations within GRAM Group.

In terms of completed projects in 2022, we are very proud of both Gamlegården in Båstad and Fågelsången in Ängelholm. Both are good examples

of how we work with urban development longterm to create vibrant city centres where people can live, socialise and work. Gamlegården combines 18 high-quality rental apartments with commercial spaces, each featuring an attractive, modern design gathered around a beautiful Mediterranean-style inner courtyard to encourage social interactions. Offering beautiful views of the Rönne River, Fågelsången is also a fine addition to Ängelholm’s cityscape. The property was developed as a densification project with 69 stateof-the-art apartments and is built according to the requirements of Miljöbyggnad Silver. One interesting project that has been further developed in 2022 is ÄHLM Market on Storgatan in Ängelholm. ÄHLM Market was inaugurated on Easter weekend in 2023, and we hope that this concept will bring new life to commerce in the city centre.

For several years, we have been developing ideas for a new type of accommodation – senior accommodation for the growing number of active senior citizens – and these will soon be a reality. In old age, many people feel that their house is too big and that gardening is too difficult, but there have been few alternatives, especially in terms of cost and convenience. With Sollyckan in Båstad and Solbruket and Sockertoppen in Ängelholm, we have taken a different approach to how 55–85-year-olds choose to live. These will be attractive homes, and the groundbreaking for Sollyckan will take place in 2024.

Our business area for destination development is showing good growth with our hotel and restaurant company GRAM Group in the lead. Our record year in 2021, when turnover reached SEK 365 million, was surpassed in 2022, with turnover reaching SEK 453 million and profit totalling SEK 28 million. The business, which has undergone extensive renovations

and investments in 2020–2022, is benefiting from a weak Swedish krona exchange rate that gives Swedes more reason to have a ‘staycation’, while our Danish neighbours are attracted by Swedish prices. The conference market recovered considerably after a couple of tough pandemic years and contributed significantly to the positive growth.

Looking at Ängelholm as a destination, we continued to finalise Arenastaden, and completed Catena Arena so that more people can enjoy first-class ice hockey. The padel hall, which also includes a gym and physiotherapy clinic, has been put into use and the adjacent Arenatorget will be completed in spring 2023. We are extremely proud to be able to contribute in this way to the city’s sports enthusiasts, especially all the children and young people who are able to enjoy fulfilling leisure activities.

We have also invested in the development of our destinations through the now wholly owned event company S&E Sport&Evenemang Holding AB. You’ll be hearing more about this company in the coming years, as it is entrusted with the organisation of major events in Båstad and Ängelholm.

Backahill’s strategic holdings of listed property companies remain unchanged. We are an active long-term owner and see the five companies as stable, with continuity in the management teams.

In terms of our unlisted investments, we have created Backahill Food, a group of companies that we believe has a bright future. By coordinating the activities of the constituent companies, we can make better use of our strengths. Here, several of the companies are in the same phase – launching new products on the market. Our focus on proptech – property

digitalisation – has changed slightly. We have divested the underlying business of Buildroid and are forming a new strategy for future investments.

Now, on to our financial position. We remain on a solid financial footing. The Group reports total assets of SEK 12.2 billion (SEK 12.1 billion in 2021) with an equity ratio that continues to be high at 88 per cent (82 per cent in 2021). Turnover totalled SEK 636 million (SEK 636 million in 2021). Profit after financial items was SEK 738 million (SEK 1,723 million in 2021).

The relatively uncomplicated succession of Backahill’s ownership took place in the autumn of 2022. Erik Paulsson handed the Company over to his children Sara Karlsson and Svante Paulsson, who now each own 50 per cent of the Company. Both of them are already heavily involved in the development of the Company and their local community and have been for many years. We are complementary in how we manage Backahill, and I look forward to continuing to work with this configuration and leading the Company to new successes.

We stand strong in the midst of an increasingly tough financial climate. Our long-term strategy provides a clear advantage in a challenging property market. We see lots of opportunities and our stable financial situation gives us room to act.

“We stand strong in the midst of an increasingly tough financial climate”

CEO Lennart Mauritzson

the year in brief

More people can eat at the Riviera

One of the major investments in Båstad in 2022 was the extension of the restaurant at Hotel Riviera Strand. The remodelling was completed in May. The extension provides an additional 100 seats in the restaurant area, totalling 330 seats on the upper level, plus a sports area on the ground floor with space for fun activities such as table tennis and billiards.

Sustainability by the Rönne river

Kvarteret Fågelsången with 69 state-ofthe-art rental apartments is being built in a great location by the Rönne river in central Ängelholm. The four buildings are being built according to the requirements of Miljöbyggnad Silver. All of the apartments have a balcony or patio. Energy consumption is optimised thanks to the property’s own photovoltaic system on the roof. There are 12 parking spaces for electric cars in the basement garage.

Full speed ahead with eight new padel courts and a gym in Arenastaden

The next step in our plan to unite all the sports in the southern part of Ängelholm at the area known as Arenastaden was finalised in September. The new padel hall has eight courts. The hall also houses a gym and a physiotherapy clinic.

At the end of 2021, Backahill acquired Torekov Hotell. With its unique location close to the rugged nature out on the tip of the Bjäre Peninsula and excellent spa facilities, Torekov Hotell provides a pleasant retreat for any stressed-out city dweller. A study of the hotel’s renovation needs, possible extensions and additions started to be planned and projected in 2022.

New venture in Torekov

Gamlegården in Båstad opened in June 2022. Grocery store Tempo and the hamburger chain Brödernas moved in then, while the tenants of the 18 apartments moved in in August.

The extension of Catena Arena was completed and inaugurated in March, taking the capacity of 4,900 seats to 6,300 seats.

the year in brief

New life in the city centre

Redevelopment of the former Åhléns premises on Storgatan in Ängelholm is starting to make room for ÄHLM Market, a concept Backahill created to complement city centre commerce. It is hoped that ÄHLM Market will become a popular gathering place, offering a variety of activities and experiences.

Dream location for dream cars

In November, Bilgruppen Sandström & Hultin opened a new showroom at Midgårdsgatan 9 in Ängelholm. The 1,500 square metre facility also houses wash/ refurbishment facilities, offices and staff areas. The attractive and strategic location along the E6 motorway gives the newly built car dealership a good opportunity to conduct more successful car sales. The entrance to Midgårdsgatan is entirely glazed.

City-centre staff accommodation

The property Hinden 6 located at Köpmansgatan 123 in Båstad was acquired in December. The building will provide accommodation for the seasonal staff of GRAM Group’s hotel and restaurant business. There is room for about 40 residents in this centrally located property which is close to both Hotel Riviera Strand and Hotel Skansen. There is a significant shortage of accommodation for seasonal workers in the summer, so Hinden 6 will be a welcome addition.

Skansen revamp

Hotel Skansen in Båstad is busy all year round, which puts a lot of strain on the premises. In 2022, the hotel’s eight apartments were renovated, including new surfaces, bathrooms and furniture.

the year in figures

A bright future for Backahill

The succession process at Backahill has actually been going on for a long time. Erik Paulsson’s two children, Sara Karlsson and Svante Paulsson, have long been deeply involved in Backahill’s development. In September 2022, Sara and Svante officially took over and now each own 50 per cent of the family business.

“We accept the challenge of taking over and think it will be both fun and exciting to make our mark in the future,” says Svante.

During the Company’s 25 years, Erik’s strong entrepreneurial spirit and flair for business have seen Backahill grow into a prominent property group with significant shareholdings in five listed property companies, as well as a large holding of residential and commercial premises, primarily in Ängelholm and Båstad. Then there are a host of other activities, more or less loosely linked to the property sector. Lennart Mauritzson became President and CEO of Backahill in 2020, and since then the Company has become increasingly clear in its focus.

“Lennart is a pro at seeing the big picture. Before we got involved in anything and everything. Things have become clearer for the whole group now.

Without a clear structure, it’s easy to end up in projects that we shouldn’t be doing,” says Sara.

Over the past three years, some holdings that aren’t part of the core business have been divested. These include SkiStar, SBB, Cernelle and Competensum, while Backahill acquired Torekov Hotell as an addition to GRAM Group, the hotel and restaurant operator that Backahill also fully acquired (from 50 per cent) at the turn of the year 2020/2021. Furthermore, several major construction projects have been completed, such as the conversion of the former Hotel Continental into apartments, the Fågelsången densification project, both located in Ängelholm, and Gamlegården in Båstad.

The strong entrepreneurial spirit, property development and community involvement continue to be the foundation of Backahill as owners Sara Karlsson and Svante Paulsson look ahead.

“It will be both fun and exciting to make our mark in the future.”

“We share the same view as Lennart. We need to narrow down our activities, we don’t want to be everywhere. It is now easier for us to say yes or no to proposals. Things have become simpler and clearer. SkiStar was difficult because it is something close to our hearts, but it was the right decision to sell,” says Svante.

“We have started to identify our roles, our strengths and weaknesses. We need to be transparent, and support and consult each other. When we feel that things are not working, we want to contribute,” Sara continues.

The three business areas of Property development, Destination development and Invest identify where the priorities lie. Local initiatives in Ängelholm and Båstad have increased, but property is still at the core.

“We are making the necessary changes and making some major strategic decisions in order to stay strong. The three business areas form a solid foundation for developing and creating vibrant communities, and that’s something that we are passionate about. We want to turn Ängelholm and Båstad into attractive destinations,” explains Sara.

“Now we are taking the Company forward in our own way. The changes we have made create opportunities to move into the right areas. We’re structuring the Company so that we enjoy what we do,” Svante continues.

Sara and Svante are taking over during a time of uncertainty. The coronavirus pandemic caused major disruptions to the global economy and was followed by the war in Ukraine which triggered further disruptions resulting in higher interest rates, inflation and energy costs. But a world in turmoil is not something that keeps the siblings awake at night. The road ahead is clear. While existing property holdings are all about management, both Svante and Sara have inherited their father Erik’s entrepreneurial flair.

“We will continue with the projects we have started. Daring to invest is important, and we have

“Now we are taking the Company forward in our own way.”

the financial power to initiate things. We’re accelerating rather than braking, and working to develop both Ängelholm and Båstad. We are able to take a long-term view. At the same time, it’s important that we remain open – the decisions we made about consolidation a few years ago were perhaps difficult but positive,” says Svante.

One of the projects closest to the Paulsson family’s heart is Norrvikens trädgårdar. Ownership is now placed in Epax, a family-owned company outside the Backahill group.

“Norrviken is being developed and this costs a lot of money, so we have chosen to put it there. We are thinking long-term so that Norrviken can live on,” explains Svante.

Backahill not only clarified its direction but also significantly strengthened the organisation over the

past two years. As the Company grows in terms of the number of employees, the need for internal clarity also increases. This is why intensive work is being carried out on the Company’s vision and values.

“We are managing a legacy of corporate culture and values. It involves being unpretentious, modest and putting the customer at the centre. This is particularly important because we are such a dominant local operator,” says Svante.

“Quality is at the heart of what we do. There should be two winners in every transaction. We grew up with these values. They are part of our backbone,” says Sara.

The core values will be completed and rolled out across the organisation in 2023, a year in which the Company celebrates 25 exciting years of development and success.

trends

Four key drivers

2022 was a transformative year in many ways. We take a closer look at four key drivers that affect Backahill, our region and the property market in general.

Increased focus on security

An unsettled world, notably due to Russia’s invasion of Ukraine in 2022, but also the coronavirus pandemic in 2020–2021 and the wave of refugees in 2015, has significantly increased the focus on security in recent years. Climate change and terrorism have increased the awareness of security issues.

Sweden’s ability to manage emergencies has also come under the spotlight. A strong civil defence must be able to ensure that healthcare, infrastructure, and access to food, water and energy are adequately provided in times of crisis. At an individual level, interest in preparing for emergencies has also increased. The popular ‘preppers’ movement is an example of this.

The increased focus on security also applies to the property sector. Digitalisation and new technologies bring many benefits but also increased vulnerability. Reports show that cybersecurity is a high priority for property owners.

Crisis awareness and geopolitical uncertainty are also reflected in housing and what is prioritised in order to have a secure home. Here are three measures that property owners are increasingly implementing to increase security for their tenants:

• Access to the building is restricted to authorised persons only by installing access control systems in the form of digital locks.

• Surveillance cameras are used to monitor and record activities in and around the building. The cameras deter criminal activity and provide valuable evidence should an incident occur

• Adequate lighting that works in common areas such as stairwells, entrances, corridors, car parks and laundry rooms improves visibility and discourages criminal activity.

“The increased focus on security also applies to the property sector.”

The transformation towards sustainable business

The visible impacts of climate change have raised awareness that major changes are needed across society to meet the climate goals of the UN’s 2030 Agenda. For property developers, addressing purely financial considerations on construction and property projects is not enough. Adopting a long-term sustainability strategy and taking economic, social and environmental perspectives into account has become a key requirement for operators on the property market.

The importance of making both climate and social issues part of business decisions is clearly stated in the Emerging Trends in Real Estate report: Europe 2023, produced by PwC and the Urban Land Institute. It

Recession

Going into 2022, many people probably had high expectations for increased growth. But residual effects of the pandemic, such as continued supply problems from China, combined with Russia’s invasion of Ukraine, have thrown the whole world into recession.

In autumn 2022, the Ministry of Finance’s forecast showed a gloomy development of the Swedish economy. High inflation and rising interest rates are putting pressure on households and businesses. Economic growth is slowing down, unemployment is expected to rise and the cost of living will outpace wage growth. This has contributed to a slowdown in the Swedish property market.

When inflation skyrockets, it increases the cost of both housing and construction. This in turn leads to

The ageing population

Sweden has an ageing population, with many people over the age of 65. This group in society continues to grow relative to the rest of the population. This demographic change has a significant impact on the property market.

Many older people with children who have left home want to swap their high-maintenance, large house with a garden to maintain for a more comfortable, smaller home. This increases the demand for smaller properties. Historically, it has not been economically attractive to move from a low- or no-mortgage house to an expensive, newly built apartment.

An important part of the ageing population is the

shows that a full 93 per cent of respondents to the report believe that climate and socially sustainable business are the most important factors for successful transformation over the next 20 years.

The focus on sustainability has led to an increased demand for properties with sustainability credentials. Lots of people want to live in places and work for companies that have a clear agenda to reduce carbon emissions and help improve the local environment. The shift in values is not only necessary for the survival of the planet – it also creates a competitive advantage for companies that invest in climate-smart solutions.

greater uncertainty in the property market. Lots of private individuals are choosing to postpone buying or selling their cooperative apartments and houses, and property companies are beginning to hesitate about making new investments and continuing renovations.

For operators in the property sector, it is becoming more difficult to access capital for renovations and new construction, but also to finance land and property acquisitions and other investments.

The need to maintain our own sound, long-term finances is increasing significantly in order to continue to make wise investments. Good solvency, steady cash flow and good banking relationships are necessary to survive a recession.

large 1960s generation that has started to retire. This generation behaves differently to previous generations in terms of how they see themselves and what their retirement should look like.

There are great opportunities to create new, attractive forms of housing that offer extraordinary services. However, senior accommodation can vary greatly in their design and what they have to offer. The idea behind senior accommodation is that they are a simple and comfortable place to grow old, with greater opportunities for socialising. Some homes have space for your own car, proximity to shops, and a glazed courtyard as a communal area.

business concept and strategy

Ready with a strong organisation

We are a clear, responsible operator in the property market with strong roots in our home markets of Ängelholm and Bjäre.

business concept and strategy

Backahill is a strong, long-term player in the community, committed to contributing to communities in which people are happy to reside, work and live. We develop districts and vibrant environments where everyone can feel safe. Our home markets are Ängelholm and Bjäre. We encourage people to come here, which in turn creates jobs so that more people can live and work here. We are passionate about making our community a little better – and we do it from the heart. We might not break even on many of the investments we make, but we feel it is right to implement them because they contribute to a better whole in the long term.

A strong entrepreneurial spirit is an important component of our corporate culture. It helps us to be a positive force for change, to dare to believe and invest in new concepts and different solutions. Sometimes you need to think outside the box and beyond conventions to bring about development and lasting change. Through our properties we create new opportunities for the benefit of so many people. This is where people can meet and socialise, enjoy and

grow, shop and play sports, live and thrive.

We continue to streamline and define Backahill’s operations and focus. Our mantra “focus, structure, commercialisation” helps us to achieve greater clarity. We have divided our operations into three business areas with different focuses and financial sizes. Within Property development, we buy, develop and manage residential, commercial and community properties. This is closely linked to our other business area, Destination development, where we work towards the conscious and long-term development of destinations to contribute to a vibrant community and outstanding experiences. Our third business area, Invest, is key to the success of our activities in the first two business areas. Within Invest we make long-term financial

“We are passionate about making our community a little better.”

The Tempo grocery store is located in the newly built Gamlegården in Båstad.

investments, act as active shareholders and have listed and unlisted holdings. The division into the three business areas gives us a clear focus on what we need to do – as well as what we don’t. This helps us internally but also makes our strategy highly visible to our stakeholders.

Urban development is a key concept for us. It is a constantly changing process. As a leading operator on our home markets, we take greater responsibility beyond the acquisition of a single property, the launch of a single construction project or the sponsorship of a sports club. We are committed to sustainable urban development, taking into account social, economic and environmental sustainability. Local and regional conditions are also taken into account.

Our commitment to society is long-term, so we put a lot of energy and time into designing realistic visions that take many dimensions into account. What kind of social amenities does a city need from a 20-year perspective? How can we contribute to a vibrant local community in the long term? How can we build in the most environmentally-friendly and sustainable way possible?

We attach great importance to architectural values. The design of a place is central to how well it functions and how much it is appreciated by residents, visitors and shop and restaurant owners. Welldesigned places make people feel good and want to stay, and visitors want to come back. We promote the densification of cities and strive to create multifunctional solutions to make the best use of available space.

In recent years, we have devoted a lot of time and thought to strengthening our organisation to be ready for the challenges of the future. We have increased expertise across the board – in economics and finance, sustainability, marketing, property management and business development. We are building our organisation to be resilient, innovative and solution-oriented.

With a stable organisation comprising a wide range of experience and knowledge, we are now harnessing the drive and momentum we have together. We are setting the course for the coming years, looking for new opportunities and inspiring each other to shape a better future.

“We are committed to sustainable urban development.”

Hotel Skansen’s reception.

Lennart inspects the courtyard at Gamlegården.

Greenside near Båstad Golfklubb.

Business areas

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

Kv Fågelsången, Ängelholm.

Continuous urban development

As an active community builder, we are working to promote a positive development of the cityscape, primarily in Ängelholm and Båstad.

Within the Property development business area, we buy, develop and manage residential, commercial and community properties. We mainly concentrate on our home markets of Ängelholm and the Bjäre Peninsula, but we also have operations at other locations in Sweden.

When looking at future property development projects, we use several perspectives, all of which are important for us to consider. Firstly, urban development is a key concept for us. It is about how we can contribute to what a society needs to function well. Here we develop long-term plans and visions that we want to realise. We look at opportunities to buy land and properties so that we can develop new properties that meet the existing needs. These are often major undertakings on our part, such as Kronodalen. At the beginning of 2022, we acquired the southern part of the hospital area in Ängelholm, totalling 61,000 square metres. This allows us to realise our vision of Ängelholm being able to offer university programmes.

The idea is that Campus Ängelholm will include not only educational facilities but also student apartments, commercial premises and other housing. We want to create a completely new and sustainable district – Kronodalen – which includes a car-free city centre.

Another urban development project is ÄHLM Market. When Åhléns decided to close down in

Ängelholm, we immediately saw an opportunity to create something unique. After testing different concepts, we started the major renovation in 2022, which is set to combine shopping with experiences. For several of the businesses housed in the premises, we will initially manage the operation ourselves in order to develop a range that we believe complements other city centre commerce. We hope that this can become the new gathering place for the people of Ängelholm. ÄHLM Market opened on Easter weekend 2023.

A third urban development project is a new type of senior accommodation. We are living longer and longer and are more dynamic at older ages. This means that other demands will be placed on our accommodation. Today it is often financially favourable for many people to remain in their large house with a garden, both of which require a lot of maintenance.

“It is about how we can contribute to what a society needs to function well.”

An urban development project like Gamlegården is important for smaller towns like Båstad to thrive.

How can you stop commerce from moving out of the city centre? ÄHLM Market is Backahill’s own concept for a new meeting point.

(The bottom image is a visualisation).

property development

Using the southern part of the hospital area, we want to create Campus Ängelholm.

We plan to build attractive homes that older people will actually want to move into themselves, not be forced to move into, such as a care home. We have come the furthest in Båstad with Sollyckan, where the detailed plan gained legal force in 2022. It’s a residence with a high level of comfort, space for your own car, proximity to shops, and a glazed courtyard as a communal area. The same ideas are behind Solbruket & Sockertoppen at the station area in Ängelholm, a project we are planning together with Melins Fastigheter. In 2022, we organised an architectural competition that Möller Arkitekter won. This is where we want to build houses so that different generations can socialise.

Another perspective we use in our property development work is that we review our existing portfolio to see how it can be further developed and create added value. A good example of this is Kv Falken on Storgatan 51 in Ängelholm. There was a large apartment and an office, but also underutilised space at the back of the property. We are expanding the building and creating four rental apartments between 72 and 108 square metres. In this way, we are densifying an attractive location, providing rental apartments in desirable sizes and also beautifying the area by transforming a dull backyard facing Tåstrupsgatan into a front thanks to the façade’s striking rhombicpatterned sheet metal.

Speaking of densification, we are very proud of Fågelsången 3, where construction according to Miljöbyggnad Silver’s strict requirements took place in 2022. In spring 2023, tenants will move into 69 state-of-the-art apartments in the centre of Ängelholm. The elevated courtyard provides pleasant features such as a common social area for the residents and a good view of the Rönne river. There is a two-level garage with spaces for both residents and visitors to the centre. Twelve of the spaces have a charging point for electric cars.

The management side is the third aspect of our Property development business area. Good management of existing property holdings provides stability

Region Skåne has signed a lease agreement with Backahill for a new ambulance station in Ängelholm.

The geographical location of an ambulance station is extremely important to ensure that vehicles can quickly reach the scene of an accident or someone’s home or workplace.

“Our new location means we are closer to our district, and we can get out on the main roads more easily and quickly. Accessibility is important,” says Daniel Fredriksson, head of the ambulance unit in Ängelholm. The ambulance station in Ängelholm is responsible for caring for seriously ill patients in Ängelholm, Båstad, Örkelljunga and Klippan when emergency care is needed outside the hospital. Seven ambulances are in operation during the day and four at night.

The lease was signed in 2022. The new premises is located on Kungsgårdsleden and will be completed in November 2023. The new premises provides more space for the 85 employees.

“The premises is better suited to our activities. We will have better training facilities, more storage and generally more space for changing rooms, day rooms, etc. There are 12 parking spaces for vehicles and currently we have nine ambulances and one car, so there is some room for expansion.”

A new station that’s bigger and closer

“We want to create a completely new and sustainable district, Kronodalen.”

property development

← Solbruket in Ängelholm is a new type of senior accommodation with good amenities and a glazed courtyard that can serve as a communal garden. (Visualisation from Möller Arkitekter).

← Sollyckan senior accommodation in Båstad meets the need for a comfortable home when a house feels too big and a garden too demanding.

Home electronics chain Kjell & Co opened its first store in Ängelholm a year ago. The central location on Storgatan was very important in the choice of premises.

According to Christopher Thour, establishment manager at the Swedish home electronics chain Kjell & Co., the three ingredients for running a successful store in the city centre are having knowledgeable and service-oriented staff, the right range and being highly accessible.

“We help customers with everyday technology. A lot of what we sell can be bought online, but we explain it in a way that people understand. That’s why we spend a lot of time training our staff in the latest technologies. We want to build long-term relationships with our customers,” he explains.

Kjell & Co started in Malmö in 1989 and grew slowly for the first 20 years, but now the chain has 115 stores in

Sweden and around 30 in Norway. Christopher has had his eye on Ängelholm for quite a while in search of the right premises.

“Location is incredibly important. We want to be where our customers are. We have noticed that commerce in Ängelholm has grown. This shows that the people of Ängelholm care about local commerce.”

The city of Ängelholm is close to his heart.

“It’s a great city, especially in the summer with its proximity to the sea. It’s not a small city, but it’s not a big city either, it’s a bit of both with everything to offer,” says Christopher.

“We want to be where our customers are”

← Kv Falken in Ängelholm is a fine example of a densification project where we create four attractive rental apartments in a central location.

in terms of rental income. We are keen to keep our properties to a good standard, they should be well maintained and we spend a lot of time making sure that all the spaces are rented out. In 2022, we signed agreements with the Swedish Police and Region Skåne. We completed an evacuation room for the police while we are remodelling their existing premises. We are renovating and extending to create a new ambulance station for Region Skåne. During the year, Kjell & Co also moved to Storgatan, which complements the range of shops. All three tenants are located in our premises in Ängelholm.

The fourth perspective is obtained by taking a helicopter view of the types of properties in our portfolio. A balanced mix of housing, including cooperative and rental apartments, commercial properties and

“A balanced mix of housing, commercial properties and community properties gives us a solid base.”

Car group Sandström & Hultin has established itself in the Midgårds area in Ängelholm. The property was completed in autumn 2022.

community properties gives us a solid base.

An example of a commercial space can be found at Midgårdsgatan 9 in Ängelholm. Car group Sandström & Hultin moved into new premises in November 2022. There is a car showroom, refurbishment and washing facilities.

A vibrant city centre is something we value highly, which is why we created Gamlegården in Båstad. Housing, commerce and parking are combined in a central location. There are 18 rental apartments and five commercial premises with a shared, pleasant courtyard and underground parking. We hope to be able to use this successful concept again in the future.

To further focus on the development of the central parts of Båstad, we sold Entré Båstad to Svenska Handelsfastigheter during the year. One property

deal that strengthened our destination business area was the purchase of Hinden 6, a property that will be transformed into staff accommodation for seasonal employees in the hotel and restaurant industry in 2023.

In 2022, Backahill took over the operation of Ravinen from the Ulla & Gustav Kraitz Cultural Foundation. Ravinen is part of Epax, a company outside the Backahill group, which also owns Norrvikens trädgårdar.

Our major construction project in Mälardalen is Graninge Strand. In 2022, two buildings containing 23 cooperative apartments were built. In Nyköping, in the Nöthagen area and north of Mälarvägen in Upplands Väsby, we are planning to build rental apartments.

← Graninge Strand is our largest construction project in the Stockholm area.

We are planning to build rental apartments in the Nöthagen area in Nyköping.

property development

Since Kulturhuset Ravinen was built and opened in 2021, ownership has been transferred to Epax, which also owns and manages Norrvikens trädgårdar.

destination development

Outstanding experiences are at the centre of our destination development. Here is a striking light show at Norrvikens trädgårdar.

Experiences in focus

Experiences take centre stage in our Destination development business area. By developing and managing beautiful and fit-for-purpose properties, we help to create attractive destinations.

The attractiveness of a destination depends on how well the destination can match visitors’ expectations and actual experiences. In our Destination development business area, we work to ensure that Båstad/ Bjäre and Ängelholm are vibrant home towns and attractive destinations that offer rewarding meeting places and memorable holiday adventures.

We promote commerce and other activities, and make it easier for people to spend time in beautiful environments and unforgettable nature. The range of choices for comfortable accommodation, cosy restaurants and exciting activities keeps people coming back for more.

In order to create an attractive destination that people want to visit, properties that support positive experiences are needed. In Båstad, Hotel Skansen

and the tennis stadium are the hub where everything happens. Båstadtennis & Hotell AB (BTHAB), in which Backahill is the majority owner with almost 40 per cent, owns Hotel Skansen and Hotel Riviera Strand, but also Warmbadhuset and its restaurants Papas, Pepes Bodega and the nightclubs Loft and Kristallen, as well as the tennis stadium itself and its various facilities. Torekov Hotell is fully owned by Backahill.

2022 was a great year for BTHAB – we enjoyed fantastic world-class tennis with a record number of visitors. Investments in the properties are made continuously and in 2022, Hotel Skansen’s eight apartments have been completely renovated and Hotel Riviera Strand has received a significantly larger restaurant (100 new seats) and a sports area

destination development

underneath that was ready to be used for the summer season 2022. In addition, a number of new ideas are being planned to further develop the properties. These include a complete renovation and remodelling of Warmbadhuset, the refurbishment of Torekov Hotell, a new outdoor pool at Hotel Riviera Strand, and plans for a modern and flexible venue for large events under the ground floor of the tennis stadium. A much-needed renovation of the kitchen at Hotel Skansen is also planned.

The fully owned operating company GRAM Group continues to do well. You can read more about the Company’s success over the past year in the article on page 47. 2022 was another successful year for Båstad as Sweden’s best tennis metropolis. This year’s edition was a success with 66,000 visitors over 14 days. The

“2022 was another successful year for Båstad as Sweden’s best tennis metropolis.”

Good events strengthen ties to a destination

Event expert Johan Pagerup has been tasked with creating unforgettable moments in Båstad/Bjäre and Ängelholm.

Sharing an experience with others at a major event can be extremely powerful and leave you with great memories for life. It also often strengthens the relationship with the place where the event takes place. We want this to happen more often in our home region and it would definitely strengthen Båstad/Bjäre and Ängelholm as destinations. Johan Pagerup has extensive experience in organising events and has attracted major international world events to Scandinavium and Gothenburg, ranging from ice hockey and handball World Cup tournaments to Bruce Springsteen concerts.

“I have been on an amazing journey. Destination development and organising events was not an established business when I started. A lot of people raised their eyebrows when I explained what I was doing. ‘But what do you actually do?’ was a question I was often asked,” says Johan.

“Today, events have made their way into the mainstream. It is possible to talk business. The industry has found the keys to making business interested in events,” says Johan.

Johan now leads S&E Sport&Evenemang Holding AB (S&E), which has been fully owned by Backahill since 2021 and supports the business area Destination development with a focus on event development. The idea of the company is to help generate income for other activities within the destination development business and ultimately with the aim of strengthening Ängelholm and Båstad/Bjäre as brands and as year-round destinations with annually recurring events.

The company charts, identifies and approaches major event rights holders, organisers and commercial partners. S&E is looking for events in four areas: active lifestyle, boat & sea, culture & music and food tourism.

“Creating activities and events within these focus areas will provide targeted financial and branding effects for the products operated and owned by companies within the Backahill Group,” says Ingrid Lövkrona, Destination Developer at S&E.

In collaboration with the destination, S&E has devel-

oped Norrviken’s summer concerts – a new, intimate concert concept. The BotaniCar motorsport event at Norrvikens trädgårdar created curiosity and attracted the international auction house RM Sotheby’s.

In November 2023, it’s time for the international trail running adventure – Kullamannen by UTMB – to become part of the UTMB World series of 25 races worldwide.

Winter on Bjäre continues to grow both geographically and conceptually and contributes to the destination development of Bjäre during the winter season.

The harbour area will host the Motosurf World Cup in 2023, and sailing competitions the following year in collaboration with the Royal Swedish Sailing Society (KSSS).

In Ängelholm and Catena Arena, the team hopes to attract major sporting events such as handball, ice hockey, floorball and music productions. S&E also plays an active role in the international equestrian competition LGCT at the Stockholm Olympic Stadium with the world’s best riders.

Johan Pagerup and Ingrid Lövkrona are working to attract more exciting events to Båstad and Ängelholm.

destination development

Nordea Open contributes strongly to the attractiveness of Båstad and a survey shows that more than SEK 238 million was spent by visitors in connection with the tennis tournaments and their visit to the Båstad region.

There are lots of beautiful and challenging golf courses on the Bjäre Peninsula. Next to Båstad Golf Club, we offer visitors the opportunity to stay at Greenside, eight New England-style rental apartments that give passionate golfers the chance to enjoy their favourite sport in stunning surroundings.

Hundreds of thousands of people visit Bjäre every year. In order to provide accommodation for our many employees who are seasonal workers at our GRAM Group hotels and restaurants, they can stay at the Apelrydsskolan student residence where we expanded the capacity in 2021 with a new building. In time for the 2023 summer season, we are adding Hinden 6, which was acquired in 2022. This property on Köpmansgatan in Båstad is being refurbished and will accommodate 40 seasonal residents.

One important element that makes Båstad and Bjäre a strong tourist magnet is Norrvikens trädgårdar. There is a close collaboration between the park and GRAM Group, which develops interesting combination offers to attract more visitors to the Bjäre Peninsula. To ensure the park’s development and future, it is now owned by Epax, a company outside the Backahill group. Ravinen art gallery is also included in the holding, and in 2022 Epax also took over the operation of the newly built art gallery. Let’s not forget that our focus is also on developing Ängelholm as a destination. There is a great deal of commitment to sport in Ängelholm and we often take on major challenges because we feel in our hearts that this is the right project to invest in, and an example of this is Arenastaden in southern Ängelholm. Backahill owns 48 per cent of Arenabolaget in Ängelholm. Despite a new share issue in which we gained a new owner in the form of Bevaclean AB, we have maintained our shareholding. We therefore remain the majority shareholder in the Company.

In 2022, the renovation and extension of Catena Arena was completed so that more people can enjoy ice hockey and other events.

Early on, we developed the vision of a gathering place for sports enthusiasts at Arenabolaget. After many years of work, we have now contributed an expanded ice rink and an additional training centre for ice-based sports. In 2022, we completed Catena Arena’s refurbishment and extension to provide 6,300 seats, an eight-court padel hall, and a gym and physiotherapy clinic. We have adapted the car park for visitors, providing about 15 per cent more parking spaces than before, totalling about 750 spaces. In 2023, the Arenatorget meeting place will also be completed. This means that we have honoured our commitments to Arenastaden. Going forward, there will be continued discussions with the municipality and Peab about the visions of a new football stadium and sports centre that would further complement Arenastaden.

To further strengthen the Destination development business area, we have commissioned event organiser Johan Pagerup to create and develop more events to attract even more people to Båstad and Ängelholm. You can read more about this on page 41.

“At Arenabolaget, we developed the vision of a gathering place for sports enthusiasts early on.”

The concept behind Arenastaden in southern Ängelholm is to bring a large number of sports together in one place.

destination development

← Hotel Riviera Strand next to Malens havsbad will have a much larger restaurant in 2022. There is now room for 330 seated guests.

Torekov Hotell was inventoried after the purchase in December 2021. In 2022, new plans and construction projects were planned for the beautiful spa hotel.

← In 2023, the operation of Sands Bakficka changed hands and from summer 2023, the team behind Papas and Pepes Bodega will start Mamas on the premises.

Another record for GRAM Group

2022 was also a good year for Backahill’s wholly owned hotel and restaurant company GRAM Group.

Båstad enjoys international tennis every summer thanks to the ATP and WTA tournaments held at our centrally located tennis and hotel facility. But there is so much more than tennis itself that draws so many people to Båstad in the summer. The harbour is full of visiting boats and the harbour area just below the tennis stadium is bustling with life. From May to September, restaurants such as Papas, Pepes Bodega, Sands and Bakfickan are running at their peak. And for our three hotels – Hotel Skansen, Hotel Riviera Strand and Torekov Hotell – there are now good booking figures outside of the summer months.

“We understood early on that we needed to focus on the period from 30 September to 1 May. Our marketing team has planned activities for the target groups of each hotel. In addition, the target groups vary throughout each week,” says Marcus Thuresson, CEO of GRAM Group.

At Hotel Riviera Strand, families with children, conference groups and associations are the main target groups, while Torekov Hotell often attracts couples or small groups looking for a quiet and cosy, smaller hotel. Hotel Skansen has four distinct seasons and also changes its target group during the week.

“It is very fortunate that we have three hotels with different specialisations. We are working extremely hard on customer surveys to match the needs of our guests. We look at what people are searching for, what we lack, whether we are in the right price range, etc. We compare ourselves to similar establishments and have also spent a lot of time improving our online presence,” Marcus explains.

Turnover and profits for 2022 are at a new, high level. Turnover totalled SEK 453 million and profit was SEK 28 million for GRAM Group.

“We have seen good developments to both price and volume. For us, the location is of course a big advantage – all three hotels have a sea view,” comments Marcus.

After the pandemic, conference bookings have recovered well at all three hotel sites.

In addition to this, our concepts Papas, Papas garden, Pepes Bodega and Loft/Kristallen, which are operated in Huset vid Stranden, complement the hotels very well and have also enjoyed a very good development in 2022.

Marcus believes that the fact that there are other players in the restaurant industry is only an advantage.

“It is good to have a varied offer at the destination and we also have a harbour with other players. A board member put it very well when they said: ‘You should not feel like you’ve done everything when you leave the Bjäre Peninsula,’ and this is exactly what we are trying to do. That requires a wide range of choices.”

GRAM Group

Turnover: SEK 453 million (SEK 365 million in 2021)

Profit/loss: SEK 28 million (SEK 20 million in 2021)

Number of employees: 300 permanent, 500–600 employed in summer

Number of guest nights sold: 93,400

GRAM Group’s CEO Marcus Thuresson is pleased with developments in 2022.

invest

Stable and long-term holdings

Our Invest business area comprises all our financial investments, including investments in both listed and unlisted companies. The business area constitutes a stable platform for Backahill’s overall operations.

Wihlborgs’ Prisma office building in Oceanhamnen in Helsingborg.

← Fabege is building the Royal Swedish Opera and the Royal Dramatic Theatre’s new premises in Flemingsberg.

→ Brinova in Landskrona. The Klas Klättermus 2 property with its 76 rental apartments is situated in a beautiful location.

Backahill has a strategic holding consisting of significant shareholdings in five listed property companies. Our ownership in the companies exceeds ten percent of both capital and votes. Together, the five companies have operations across large parts of Sweden. Diös is northern Sweden’s largest private property company, operating from Borlänge in the south to Luleå in the north. Fabege’s property portfolio is centred on the Stockholm region. Brinova Fastigheter owns and manages rental housing and community properties in southern Sweden. Catena specialises in logistics properties in Sweden and Denmark. Wihlborgs is the leading commercial property company in the Öresund region with offices and properties in Malmö, Lund, Helsingborg and Copenhagen.

Our listed property companies in the Invest business area are affected by the new higher interest rate conditions, resulting in higher costs for loans and debt. At the same time, listed companies remain stable with strong balance sheets, good banking relationships and good refinancing opportunities. There is also continuity in the management of the companies, which guarantees a long-term approach. You can read more about our strategic holdings from page 57 onwards.

“Backahill has a strategic holding consisting of significant shareholdings in five listed property companies.”

To strengthen the development of our operating companies in Bjuv, we have formed the Backahill Food group where we have appointed a new role, read more about it on page 54. We strongly believe in creating circular and sustainable food production with a focus on peas and other legumes. That’s why we invested heavily to increase production of both peas and pea protein. 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. Our ownership of Foodhills AB was consolidated to 98 per cent during the year. We own 80 per cent of GroPro Solution AB and 65 per cent of GroPro AB.

The properties in Bjuv are owned and developed by Foodhills Fastigheter AB. The premises on the old Findus site are gradually being revamped and adapted, to now house a cluster of small and large food businesses. Our ownership of the property company is 50 per cent. One major investment during the year was a 27,000 square metre facility completed for the tenant HelloFresh.

Backahill owns 25 per cent of MMB i Båstad AB, which is a construction company in Båstad. The company works on new construction and the renovation of properties for the corporate and private

sectors. You can read more about them on page 56.

We still have a nine per cent shareholding in Scandinavian Mountains Airport, which is a state-ofthe-art airport that improves access to the popular ski areas of Sälen and Trysil.

During the past year, we have divested the underlying business in Buildroid. The digitalisation of the real estate industry (often referred to as proptech, short for property technology) remains an interesting niche that we will invest more in going forward, but the industry is complex and immature. We are continuing to evaluate our opportunities and see great potential in property digitalisation.

The Swedish Transport Administration’s premises in Borlänge have been developed by Diös. ← Catena, Morgongåva.

A sustainable future

In the Invest business area, we have formed Backahill Food, which we believe has great potential.

At the end of 2022, Backahill Food was formed to bring together our knowledge and expertise in the production of sustainable food using a circular model. Production takes place in Bjuv where the companies Foodhills AB, GroPro AB and GroPro Solution AB are housed in Findus’ old premises, which Backahill acquired in 2018 together with Catena AB via Foodhills Fastigheter AB. Since 1 January 2023, Backahill Food is headed by Stefan Andersson.

“We are going to commercialise on the opportunities we already have – modern pea and legume production, pea protein production and the actual technology behind sustainable pea protein production. I am responsible for synchronising our various activities and ensuring we take full advantage of our unique expertise,” explains Stefan.

2022 was a year to get familiar with new equipment in both pea production and pea protein production. The war in Ukraine caused many farmers to switch to other crops due to the shortage of grain, which reduced the area available for growing peas. However, in 2023, production volumes are expected to increase by more than 50 per cent.

“Now we need to take the product to the market. There is a lot of interest in our products within various fields of application.”

Stefan has extensive experience in business development, business optimisation and organisational development. He previously worked in the sports world with several companies developing equipment and system solutions for sports facilities in the Nordic region.

“I am a sports fanatic and have a background in playing football. But these days I do other activities, it’s more mountain biking and cross-country skiing. I think health, wellness and sustainability are important. We are only at the beginning of the sustainability journey, and I want to contribute to a better future. Peas provide the most sustainable protein that it is possible to produce,” says Stefan.

“We are only at the beginning of the sustainability journey, and I want to contribute to a better future.”

← Stefan Andersson heads Backahill Food.

Pea production in Bjuv is very efficient thanks to new modern machinery.

MMB – 25 years in the building industry

Construction company MMB in Båstad celebrated its 25th anniversary in 2022. The company invests heavily in employee training. This results in high quality workmanship and good ratings from customers.

The construction and interior design company MMB in Båstad was founded in 1997 by brothers Mikael and Magnus Bertilsson. Nowadays the company has about 50 employees and has both private and corporate customers, not only in Båstad and on the Bjäre Peninsula – assignments come in from Helsingborg in the south to Halmstad in the north.

“We do everything from hanging paintings to building large warehouses. But construction is our core business. We are good at getting involved in the planning at an early stage, in co-operation with the client, and we always schedule all construction phases,” explains Mikael.

One thing that sets MMB apart is the high quality of its workmanship. This is partly because the company invests in the continuous training of its employees.

“We want great employees and have high standards, but we also get a lot of praise from our customers,” says Mikael.

Backahill owns 25 per cent of the company and is also one of its largest customers. The hotels in the GRAM Group, the Warmbadhuset in Båstad harbour

and the new Gamlegården district have all received or are receiving construction help from MMB. Gamlegården was completed in 2022.

“We also built a large warehouse and logistics hall of 18,000 square metres for Eleiko and we started the renovation of the police premises in Ängelholm,” says Mikael.

The 25th anniversary was celebrated at Papas in 2022. In 2023, given the current economic situation, MMB is focusing on risk minimisation.

“The market in which we are currently operating is extremely volatile. We evaluate customers, subcontractors and suppliers carefully, and make sure that we have minimal fixed-price work,” says Mikael.

At the same time, he is not particularly concerned about the future of the company. In 2022, the company had a turnover of SEK 335 million.

“It’s during the bad times that you can do good business. It forces us to make new contacts. And many individuals who are better off want to take the opportunity to build when times are bad.”

Mikael Bertilsson.

Visualisation of Mamas in Båstad.

What was the most important event for your company in 2022?

It was a strong year for rentals, with lots of new strategically important contracts, primarily with public sector organisations such as municipalities and the region.

It was also a strong project year in which many large housing and community property projects were completed and occupied, thereby contributing to the current cash flow. I would mainly like to highlight the project with a new care home and areas for home care services totalling 3,600 square metres in Bromölla with a 25-year lease agreement with the municipality, but also a new housing unit in Bjuv municipality of about 2,300 square metres with 25 rental apartments and an LSS home offering support to people with certain functional impairments that Bjuv municipality is renting on a 15-year lease agreement.

We have also continued the expansion of solar panels to increase our share of self-generated energy. We are approaching a volume of 1 million kWh, with ambitions to reach 2 million by the end of December 2024.

How do you meet the new challenges faced by the company in terms of higher interest rates and energy costs?

The increased interest rate trend is somewhat

mitigated as half of the loan volume is hedged with relatively long interest rate swaps.

We have a strong cost focus in all areas, which means that more time is spent on ongoing procurement.

Energy is one of our major cost items and a burden on the environment, so we have expanded our energy group to accelerate the pace of reducing our energy consumption in both heat and electricity. This includes more facilities being connected and controlled remotely, replacement of light sources, presence detection, new machines in laundry rooms, investments in new heating and ventilation systems, additional insulation, etc.

What are your visions and how do you go about realising them?

We want to become the leading player in southern Sweden for rental housing and community properties with sustainability and the customer in focus. With our in-house management presence and an extremely strong focus on our customers, we will create the best conditions for achieving our vision in the long term.

Per Johansson, CEO of Brinova.

What was the most important event for your company in 2022?

We gained a new major shareholder (ten per cent share) in the form of WDP, a Belgian colleague in our segment but that’s three times the size of Catena. This is a sign that someone who knows the industry sees great value in our company and we have received a very positive market response to this transaction.

How do you meet the new challenges faced by the company in terms of higher interest rates and energy costs?

We are partly compensated through indexation in our rental agreements, which has led to higher rents from 1 January 2023, and we also have “enough hay in the barn to last through a famine” in the form of an excellent balance sheet and a good relationship with

the Swedish banks, which is particularly important in these times when the capital market is turbulent. In our new projects, we have to try to increase rents and reduce production costs in order to balance the calculations. The demand is there so we are hopeful that we can continue to grow in 2023.

What are your visions and how do you go about realising them?

Our vision is to link Scandinavia’s freight flows, which means we need to be present with our properties along the major routes and in the best logistics locations. We are already doing this to a large extent, but of course we need to grow and gain market share to be able to realise our vision. We create growth through our land bank and new land acquisitions, and then develop, manage and own it over time.

Jörgen Eriksson, CEO of Catena.

What was the most important event for your company in 2022?

A record high net letting (SEK 77 million) which is partly due to:

Projects: the handover of the hotel in Umeå to Nordic Choice Hotels (Clarion), the completion of our largest tenant the Swedish Transport Administration’s new modern, partially reused headquarters of over 30,000 square metres – in other words, the completion of major projects on time and on budget. A total investment of SEK 1,250 million for 55,000 square metres for tenants such as The Swedish Transport Administration, Nordic Choice Hotels and the Swedish Police, and with lease terms between 10 and 20 years.

Management: continued development/conversion of the former IN-Gallerian with Länsförsäkringar Västernorrland’s (banking, insurance, brokerage) brand new office in the centre of Sundsvall, continued development/conversion of the shopping mall with coworking operator T22’s large office in Luleå.

Transactions: strategic acquisition of several properties and building rights in the growth cities of Falun, Borlänge and Skellefteå. These acquisitions contribute SEK 120 million in rents for 2023.

How do you meet the new challenges faced by the company in terms of higher interest rates and energy costs?

The question has two answers as we have worked for a long time with very favourable energy agreements containing 100 per cent fossil-free energy with Jämtkraft, which gives us favourable prices in the short and long-term. A whole 74 per cent of our portfolio is also located in electricity areas 1 and 2, which

means no major direct impact on the company’s costs as we have secured electricity prices at very favourable conditions for a period of five years. In everyday life, we work very actively on energy optimisation and investments to reduce energy consumption. We see higher interest costs due to higher policy rates and based on the chosen financing strategy. We are secure in our capital structure and have a very strong cash flow and a relatively large yield gap in the business. More than 80 per cent of the financing is from Nordic banks, which is comforting in this volatile capital market. We also work actively with green financing through, for example, sustainabilitylinked loans that have a positive impact on our interest rates. Our focus is on continued growth in rental income and a strong cash flow.

What are your visions and how do you go about realising them?

Our market in northern Sweden is experiencing the biggest green growth revolution of our time. We have only seen the beginning of this development and are confident that the investments made will not slow down, and instead increase going forward. Increased economic growth leads to greater demand for offices and attractive premises, higher rent levels and reduced vacancies. As the market-leading property company in northern Sweden, we are very well positioned to create new business with completely new establishments for our cities and to take advantage of the business opportunities that come from the increased demand for commercial and residential premises with the help of our local teams. Our business/vision and goals are about creating Sweden’s most inspiring cities.

Knut Rost, CEO of Diös.

What was the most important event for your company in 2022?

It is difficult to choose a single event, given that there are a couple of major events in a year for a company like Fabege, especially in an uncertain environment. If I had to choose just one, it would be that we started the first two projects in the development of Flemingsberg. We are constructing new buildings for Alfa Laval, the Royal Swedish Opera and the Royal Dramatic Theatre of 27,000 square metres and 12,000 square metres respectively.

How do you meet the new challenges faced by the company in terms of higher interest rates and energy costs?

Our energy strategy involves taking a holistic approach to energy in our properties, projects and districts. It’s an important part of achieving climate neutrality. In 2022, we further increased our focus on day-to-day energy efficiency. We are actively working on our processes and technology to minimise electricity use and implemented a large number of measures to reduce consumption, thus mitigating the price increase and supporting the electricity system. During the winter, we managed to reduce electricity consumption from an already low level by about 11 per cent, which was impressive.

The fact that interest rates are rising after a number

of years of artificially low levels is something we are trying to address in different ways. For us, it has been important to have a strong balance sheet with, among other things, a relatively low loan-to-value ratio, around 38 per cent, to cope with fluctuating interest rates and markets. As Erik Paulsson is fond of saying, “you have to make sure there is enough hay in the barn to last the winter.” We have also worked actively to fix some of the interest rates for longer periods, which means that an increase in interest rates has a gradual impact over several years. We are also working to ensure that our revenue is strengthened to meet increased interest costs.

What are your visions and how do you go about realising them?

We develop and manage attractive and sustainable urban districts. Our focus is primarily on commercial properties in a number of sub-markets in the Stockholm region. For us, it is important to be a present partner that puts people at the centre of the development of companies, places and our city. We create value through management, refinement, project development and transactions. We have high ambitions in our sustainability work and work actively with everything from the choice of building materials and energy use to sustainable travel in order to contribute to a reduced climate footprint.

Stefan Dahlbo, CEO of Fabege.

What was the most important event for your company in 2022?

I think it is worth emphasising that in a turbulent time with lots of challenges, we managed to set a record for the highest net rental ever, and that thanks to our focus on cash flow and earning capacity, our ability to continue investing is also worth mentioning. For instance, we acquired two properties near Kastrup and Copenhagen airport: Hedegaardsvej 88 and Amager Strandvej 390, totalling 53,000 square metres. The acquisitions are a good example of our strategy of creating larger clusters where we add value to well-located properties. The new properties are each located next to a metro station within easy reach of central Copenhagen and represent a new geographical area for us, but with the same strategy as the rest of the portfolio. We have a long-term commitment to the places we operate in and like the fact that there are things we can develop over time.

How do you meet the new challenges faced by the company in terms of higher interest rates and energy costs?

Wihlborgs has a high interest coverage ratio of 5.6, which makes us resilient even in a tougher interest rate environment. We have a strong balance sheet and good access to liquidity. In other words, we have a strategy that works and see no reason to change our

financial policy, but we keep a close eye on every shift in our environment and the market. We are working hard on energy efficiency, increasing our share of renewable energy and optimising the operation of our properties to reduce costs for our customers and the overall demand for electricity. The result can be seen, for example, in the fact that our energy use per square metre in 2022 decreased by seven per cent.

What are your visions and how do you go about realising them?

Our vision is to be a strong regional player that makes a difference in our cities, for the people who work here and for our customers. A strong organisation with skilled employees who treat our tenants well, who find solutions when tenants need change, who implement energy saving opportunities, who advise on how to create a successful workplace, who come up with ideas on how to develop cities, etc., is a key element in achieving this. I am incredibly proud to work with so many smart and skilful people.

Ulrika Hallengren, CEO of Wihlborgs.

backahill’s 25th anniversary

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.

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.

backahill’s 25th anniversary

Brinova purchase

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.

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.

City centre development 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.

Hotel Riviera Strand

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.

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.

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.

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.

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 2022, 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 continuing on the creation of a completely new district, Kronodalen, including university programmes and student accommodation.

sustainability report

A sustainable Backahill

Backahill is a key community builder in north-west Skåne. Our community involvement in the region is profound and widespread. This entails a responsibility to make demands and engage in dialogue so that we, together with customers, suppliers, municipalities and other partners, work together to gradually advance sustainability issues.

In 2022, we introduced Green leases to strengthen cooperation with our tenants. We also decided to introduce a code of conduct and to start assessing the sustainability performance of our strategic suppliers.

At the end of the year, Backahill, GRAM Group and Norrvikens trädgårdar jointly signed a sustainability agreement developed by Båstad Turism & Näringsliv. The agreement is a good initiative to raise

awareness and increase support for a more sustainable region. We hope this will inspire more companies to get involved in sustainability and join the initiative. Together we can make more of a difference.

We have continued to actively support and engage with local associations and culture.

In the second half of the year, Backahill conducted an employee survey. The results were generally very positive. One realisation is that we need to increase the knowledge and understanding of sustainability issues. Starting in 2023, we are therefore conducting an internal sustainability training programme for all employees.

Looking ahead, our sustainability journey continues, and we endeavour to continuously develop our

Since its foundation in 1998, Backahill has been committed to the sustainable development of the Company and the region we call home. Our community involvement is strong – we want to give back and contribute to a thriving local community.

sustainability capabilities and activities.

In spring 2023, we will establish a cross-functional Sustainability Forum to address strategic and operational sustainability issues, and to increase knowledge and consensus.

We will work towards more systematic and integrated sustainability work where we assume economic, environmental and social responsibility based on the Paris Agreement’s 1.5 degree target and the UN’s SDGs. An important step in the right direction is to start collecting and measuring the climate impact of our activities. This creates the conditions for establishing relevant goals and key performance indicators.

Climate change is an extremely important issue that affects us all. The construction and property sector is responsible for large parts of the greenhouse gas emissions in Sweden, with new construction having by far the largest impact. As a property company, we have a great responsibility to set requirements and work with our suppliers to find new solutions.

By communicating and highlighting the good work we do, we can help to inspire, and share insights and knowledge with our stakeholders. This work has begun – over the past year we have increased information about our activities on our website and in social media. Collaboration and knowledge sharing are essential to bring about change for the better.

It is also important that we continue to monitor

regulations and policies in the area of sustainability. The EU’s “Green Deal” affects all companies, including Backahill. As of the financial year 2023, Backahill will be subject to a formal sustainability reporting requirement under the Swedish Annual Accounts Act. That said, we should not forget to actually take action, and pragmatically focus on what actually makes a difference. In this report, we tell you more about our approach to ecological, social and economic sustainability.

Sustainability agreement

In 2022, Backahill AB and the subsidiaries GRAM Group and Norrvikens trädgårdar signed the sustainability agreement that Båstad Turism & Näringsliv developed for a more sustainable Båstad & Bjäre Peninsula. The agreement was signed by Lennart Mauritzson, CEO of Backahill AB, Marcus Thuresson, CEO of GRAM Group and Camilla Berthilsson, CEO of Norrvikens trädgårdar.

Kv Fågelsången’s buildings have solar panels on their roofs.

An energetic driving force

As Backahill’s new Head of Sustainability, David Ingsten is passionate about improving and moving the Company forward – and making a difference.

Backahill has been working with sustainability issues across multiple dimensions – from an environmental, economic and social perspective – for a long time, but these have perhaps been somewhat hidden from the outside world. Clarifying, reinforcing and accelerating this work is David Ingsten’s task. He has been Backahill’s Head of Sustainability since 29 September 2022. His most recent position before this was with Öresundskraft, where he worked to help corporate customers make sustainability issues a natural part of their operations. One of the customers was Backahill, giving David a flying start in his new role.

“I have analysed the current situation and together we have drawn up a plan for our future work. We are now implementing a number of new initiatives such as green leases and introducing a code of conduct for our strategic suppliers. We have accelerated our work to install more electric car chargers and more solar panels. Together with Norrviken and GRAM Group, Backahill signed a sustainability agreement developed by the Båstad & Bjäre business community. I hope we will have the opportunity to do the same in Ängelholm. I realised early on that Backahill has a unique position in the local community, we can make an impact by collaborating and inspiring.”

David’s mix of high energy, creativity and structure allows him to quickly identify what needs to be done, create plans for it and put them into action.

“You just have to get on with it! I’m not passionate about the environment but I think sustainability is very important. It is important to find a balance between being pragmatic, identifying what makes a difference and what is commercially important for Backahill. My sustainability work is mostly linked operationally to the Property development business area. It is in the management and the construction phase that we can most reduce the climate impact of our buildings. But my sustainability work is also about being a sounding board and supporting some of our investments. I have organised sustainability training for employees both internally and in our unlisted companies to give them a broader understanding and increased involvement.”

He aims to ensure that sustainability is integrated into the Group’s strategy, working methods and business plan.

“We are not there yet, but we are gradually moving

forward. I am passionate about progress, about moving things forward and making a difference.”

David’s energetic approach perhaps stems from his keen interest in sport – he has spent time playing football, ice hockey, golf and tennis.

“For the last four years, it has mostly been padel, and supporting my two sons aged 9 and 15 in their sporting activities. I also enjoy travelling with my family and learning more about wine.”

David finds Backahill’s strong social commitment, including its broad support for organisations, very appealing.

“I am proud of all our commitments and think we can make them even more visible. As a big player, we have a big responsibility.”

David Ingsten isn’t just involved in sustainability issues; he also has a special interest in proptech – smart properties –and has, among other things, initiated the Proptech Öresund event.

Backahill’s sustainable development goals

Backahill supports and wants to contribute to the fulfilment of the 17 SDGs of the UN Agenda 2030. All of the goals are important for achieving sustainable development, and several of the goals are linked to and influence each other. Backahill has identified the six targets where we can make the most 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.

Our framework and focus

We take a long-term view and sustainability is therefore a natural part of our business. Backahill works actively with economic, social and environmental sustainability.

Ecological sustainability – environmentally smart properties

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

Our overarching goal is to work towards minimising our climate impact. This involves a wide range of activities in and around our properties, throughout their life cycles. Most of our identified activities also have a direct or indirect positive economic impact.

Eco-smart properties also mean that we take into account various ecosystem services and green structures for the preservation of biodiversity and for increased comfort, health and well-being. This also has positive regulatory effects such as protection against extreme weather and erosion.

Energy use

Backahill works according to an energy strategy which means that we focus on using the right energy for the right purpose. This means we use district heating where available, or other forms of renewable fuels or heat pumps.

We take active steps to reduce energy use. We analyse the energy use and climate impact of our properties and work on energy efficiency measures. 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.

In 2022, we introduced what are known as Green leases for our commercial tenants. Green leases are an annex to the lease agreement that aims to facilitate dialogue and cooperation on various sustainability issues. We offer this to our tenants in every new or renegotiated contract.

We have started to monitor energy use and calculate our climate impact. In 2023, we will continue this work in order to establish benchmarks and formulate relevant targets for further energy efficiency measures.

With an increasingly volatile electricity market and rising electricity prices, the focus has shifted to energy use. The latter is positive and can help us to address

unnecessary energy waste. Backahill contributes to sharing relevant information on the electricity and power market situation. We share tips and advice for reducing energy use through various information channels.

We aim to produce and use more self-produced renewable energy by investing in solar panels on existing roofs and on new buildings where appropriate. We will explore investments in new renewable energy production and follow the development of carbon offsets and carbon capture methods but do not intend to actively offset in the near future, focusing first and foremost on reducing our own emissions.

In 2022, we purchased electricity labelled Bra Miljöval [Good Environmental Choice] for our entire property portfolio. In cases where the properties are heated with gas, which mainly occurs in Båstad, we buy biogas.

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 actively collaborate on solutions. Where necessary, we also install stormwater treatment equipment. We monitor water use in

Green leases

In 2022, we introduced Green leases. Green leases are an annex to the lease agreement and work as a platform for ongoing cooperation on various sustainability issues. This may involve energy saving measures, reuse, choice of materials or transport and waste solutions.

← Beehives are an example of an ecosystem service that contributes to greater biodiversity. Backahill finances one of the hives in the apiary at Norrviken.

→ We are proud of Kv Fågelsången, our first housing project built according to Miljöbyggnad Silver.

properties, investigate high use and take action.

For Backahill, waste arises partly in connection with construction projects and tenant adaptations, and partly through the waste that tenants and we ourselves generate in our operations. We will offer waste sorting facilities for recycling to all tenants.

Transport and travel

The climate impact of transport and travel is one of the biggest challenges for our environmental work and a sustainable society. Backahill wants to take responsibility and make it easier for our tenants and staff to travel more sustainably. We provide bicycle parking and charging for electric and hybrid vehicles at our workplaces, and offer electric car charging at all our properties where possible.

In 2022, Backahill introduced a new vehicle and travel policy. Among other things, it states that:

– All company cars ordered from 2023 onwards shall be hybrid (electric/petrol) or electric cars.

– All service vehicles ordered from 2023 onwards shall be electric.

By 2023, our entire active service fleet will consist of electric cars.

Environmental impact in the construction phase

The largest emissions in the construction and property sector occur during construction and renovation.

Resource optimisation and circular thinking are the starting points for sustainable construction. We achieve this by using sustainably-produced materials, long-lasting materials, land already in use, prioritising urban densification of cities, and using old structures and materials wherever possible.

A law on climate declarations for buildings came into force on 1 January 2022. The law affects new buildings for which planning permission is sought from that date onwards.

The aim is to reduce the climate impact of the construction phase. Calculating the carbon footprint of a material choice or construction product provides a knowledge base for the decisions made in a project.

In 2023, we will focus on engaging in dialogue with various stakeholders to increase our understanding and knowledge of how to reduce the environmental and climate impact of the construction phase. Backahill shall collaborate with suppliers and stakeholders in the construction process from a

sustainability perspective and make demands on our suppliers with a focus on building materials and the reporting of climate impact.

Eco-system services

Eco-system services are all the products and services provided to humans by natural ecosystems that contribute directly and in the long run to our wellbeing and quality of life. 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.

Eco-system services can also benefit biodiversity. In addition, trees and green plants absorb carbon dioxide from the air.

At Backahill we are exploring how we can work more actively with this in connection with our own properties and together with other stakeholders in urban development projects.

Kv Fågelsången 3

At the beginning of 2023, Kv Fågelsången 3, a brand-new residential district in the centre of Ängelholm, will be completed. The apartment building contains 69 apartments and is being built on a site already used for a multi-storey car park, i.e. without taking up any new land.

The building is being constructed according to SGBC’s current requirements for certification according to Miljöbyggnad Silver, and is being prepared for future certification in accordance with Miljöbyggnad iDrift, with a minimum level of Silver. The level means that the building exceeds industry standards and legal requirements in various aspects of sustainability.

Among other things, the district has a sedum roof which, with its vegetation, can retain rainwater and at the same time contribute to biodiversity. There are solar panels on the roofs, and we have installed 12 charging points for electric vehicles.

Environmental certification of buildings

In early 2023, Kv Fågelsången 3, a brand-new residential district in the centre of Ängelholm, will be completed. The buildings are being constructed according to the Swedish Green Building Council’s current requirements for Miljöbyggnad Silver certification. They are being prepared for future certification according to Miljöbyggnad iDrift with a minimum level of Silver.

In 2023, we intend to take a strategic policy decision on whether to systematically pursue environmental certification and on what terms.

Goal: Reduce climate impact

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

• Reduce energy use in our buildings.

• Increase own renewable electricity production.

• Reduce the climate impact of transport and travel.

• Reduce water use.

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

Social sustainability – people at the centre

Backahill’s social commitment is strong and being a positive force in the social development of Ängelholm, Båstad and the Bjäre Peninsula has always been part of the Company’s DNA.

Backahill uses property as a means to make a positive impact on society. We are constantly developing new projects to create opportunities and have a conscious and long-term focus on creating a sustainable society.

We support associations and cultural organisations that play an important role in promoting health and well-being, integration and individual development. A prosperous and inclusive society sets the foundation for economic sustainability, which is ultimately positive for Backahill as well.

Partnerships are key to achieving the Sustainable Development Goals. Backahill aims to be a unifying and driving force. Through cooperation, we can share knowledge and insights. Through networks and good communication, we can engage and inspire more people.

Sustainable urban development

Sustainable urban development is about health and security, integration, climate and healthy living and outdoor environments, but also service provision and access and proximity to transport and recreational activities.

We are 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.

Backahill is one of the initiators of the Ängelholms akademi association. Today, around 30 companies and organisations are involved and our collective efforts to bring higher education to Ängelholm are bearing fruit. The first university programme will start in 2023. A university programme and campus in Ängelholm creates the right conditions for a socially and economically sustainable region. We are creating

Kronodalen in the former southern hospital district where we aim to develop a new sustainable district in cooperation with the municipality and other stakeholders. Kronodalen will house premises to accommodate a newly established campus but also housing and commercial activities.

Our vision includes a neighbourhood with a central car-free street, proximity to climate-smart transport and good access to natural meeting places, recreation and movement. A sustainable district includes elements of vegetation and biodiversity that create conditions for health-promoting and regulating ecosystem services. We take climate impact into account, notably through our energy strategy.

In Arenastaden we are creating a centre for sports and events in Ängelholm. This is a place where everyone is welcome regardless of age, gender, background and fitness level. We also believe it can help create synergies between the associations and various activities. It also increases the attractiveness of Ängelholm.

In destination development, we also strive for a long-term and sustainable region. By promoting and enabling shopping, meetings, activities and experiences, and making beautiful environments and unforgettable nature accessible to more people, we create an

“Backahill uses property as a means to make a positive impact on society.”

that take responsibility

Associations and sport play a major role in promoting health and well-being, and generate significant direct and indirect societal benefits. In addition, a lot of organisations have the ambition and desire to make a difference and take responsibility on a broader scale. Good examples of organisations that we support are:

Grönvit hållbarhet – Rögle BK’s off-ice activities, working to use their collective knowledge and power to encourage engagement outside of ice hockey. Their vision is to create social benefits by driving collaborations between businesses, municipalities and other positive forces that share their vision of sustainable development.

Individual sustainability work – in addition to its sports activities, Vejby IF conducts its own active sustainability work, which includes a leisure activity and a sustainability network for the purpose of sharing knowledge.

Fritidsbanken is a non-profit initiative that offers the opportunity to borrow sports and leisure equipment free of charge. Fritidsbanken in Ängelholm is a collaboration between the municipality of Ängelholm and Engelholms Volleybollsällskap.

community commitment

Our commitment to local associations and organisations is long-term and comes from the heart. We give back to our community and support activities that promote health, safety, employment, equality and well-being.

Some examples of the associations we support include:

• Alla kan IF

• Bjäre runt

• Båstad GIF

• Dansfabriken

• Engelholms Volleybollsällskap

• Giving people

• Mind

• Rögle BK

• Vattenpoolarna

• Vejby IF

• Ängelholms Brottarklubb

• Ängelholms FF

• Ängelholms Hembygdspark

• Ängelholms IF

• Ängelholm Outdoor

attractive region. You can read more about our destination initiatives in the Destination development section on page 38.

Community engagement

Giving back to the local community and supporting 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 are a positive force in society.

Backahill actively supports local associations and culture. Through our sponsorship policy, we support and engage with around thirty associations and organisations in the region. The focus is on promoting the health and well-being of children and young people, as well as promoting equality, inclusion and good leadership. We also contribute to cultural and outdoor experiences in the surrounding area.

When we sign cooperation agreements, we want to make it clear where our contribution will be used in the organisation’s activities. We strive for an ongoing dialogue and monitor the impact of their activities with our partners.

Backahill also provides yearly support to a number of charitable projects and organisations that are close to our hearts.

Memberships and partnerships

Backahill shall be engaged and represented in forums and contexts that contribute to the region’s

development and drive important social issues, but of course also in relevant initiatives or networks linked to sustainability issues.

We are represented on the board of Fastighetsägarna Syd and are members of Båstad & Bjäre and Ängelholms Näringsliv. We are initiators and active in the board and the work with Ängelholms akademi.

We host the 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.

We regularly participate in various network meetings. We act as a development partner in Rögle BK’s sustainability initiative Grönvit sustainability and collaborate in Vejby IF’s sustainability network.

At the end of the year, Backahill, GRAM Group and Norrvikens trädgårdar jointly signed the sustainability agreement developed by Båstad Turism & Näringsliv. By signing, we support the importance of working with sustainability and want to contribute to a more sustainable Båstad & Bjäre Peninsula.

Backahill has been a member of the Swedish Green Building Council since 2019.

Goals:

• Actively support local associations and culture.

• Promote sustainable urban development.

“Associations and sports activities have a major role to play in promoting health and well-being.”

Economic sustainability – responsible business

Backahill takes responsibility and promotes a healthy corporate culture. We support the ten principles of the UN Global Compact related to human rights, labour, the environment and anti-corruption.

Working responsibly is not only a prerequisite for long-term profitability – it also contributes to the sustainable development of society. To support this work, we have a number of policies and guidelines.

In 2023, we will develop a common vision and values for Backahill, which in turn will be the basis for creating a code of conduct.

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 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.

Customer relationships

Building long-term and close relationships with our customers is crucial. 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.

We want to collaborate and share our knowledge. In 2022, we introduced Green leases. They are now offered to all commercial tenants when new leases are signed or renegotiated. Green leases are a platform and the foundation for ongoing collaboration on sustainability issues.

We aim to introduce regular customer surveys every two years, starting in 2023.

Supplier partnerships

An important part of Backahill’s sustainability work is to take responsibility throughout the value chain by considering sustainability issues when choosing suppliers and contractors.

Backahill strives for healthy and good partnerships with our suppliers. We mainly work with local operators, and we believe in sharing expectations, knowledge and success stories in order to make a difference for the better, together.

In 2023, Backahill will introduce a code of conduct for our strategic suppliers and when procuring major contracts. We want to ensure that all goods and services purchased are produced under sustainable and responsible conditions. We therefore require suppliers to respect the Code of Conduct and to do their utmost to meet the requirements within their own organisation and to work actively to ensure compliance with the Code of Conduct among their subcontractors.

The Supplier Code of Conduct states that goods and services supplied should be in line with the 10 principles of the UN Global Compact and the OECD

“Building long-term and close relationships with our customers is crucial.”

Guidelines for Multinational Enterprises.

The Code of Conduct is accompanied by a self-assessment to be completed and signed by the supplier. Together we then evaluate and discuss how we can create a positive movement.

Attractive and secure employer

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

The health and well-being of staff is encouraged in various ways, including through the generous fitness allowance, free massages and regular health checks. We encourage collective activities and aspire to make employees visible in our external communication.

An employee survey was conducted in 2022. The response rate was high and very good results were obtained overall. The employee satisfaction index (NMI) was 81, and the Net Promoter Score (NPS) was 85.

The survey will be conducted annually in the future. Areas for improvement will be identified and addressed on an ongoing basis with appropriate measures.

Since the 2022 employee survey was the first to be conducted in a long time, our goal is to achieve the same results or better for 2023.

Backahill is working consciously and systematically to create a good working environment, in terms of both physical and psycho-social matters. The overall objective is to achieve a safe and healthy workplace that supports the development of employees and the organisation.

Backahill has a vision of zero accidents. A whistleblowing policy and a whistleblowing function to enhance security will be introduced in the first half of 2023. We are keen for both our own staff and external stakeholders to feel confident about the possibility of identifying any misconduct within the organisation.

Sustainable investments

Backahill has strategic shareholdings in five listed property companies. Together they operate across large parts of Sweden and in Denmark as well. Backahill has also chosen to invest in selected local, unlisted companies.

For us, sustainable investment 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 both investment processes and active ownership.

In 2023, we will review our ownership and investment policy.

Goals:

• All strategic suppliers and contractors sign our Supplier Code of Conduct and complete a self-declaration.

• Satisfied employees with NMI > 80%.

• Customer satisfaction measurement will be introduced in 2023.

• Zero vision: Zero work-related accidents.

Backahill’s climate impact

During the year, Backahill made a first attempt to calculate its climate impact. The calculation is made in accordance with the Greenhouse Gas protocol for scope 1 and 2 for the years 2021 and 2022. Our ambition is to gradually improve data collection and knowledge about our scope 3 emissions.

Our overall calculations show that through our operations in 2022 we emitted around 1,800 tonnes of CO2e (location-based). The estimates indicate a relatively large increase from the previous year. This is mainly due to changes in the property portfolio. In the case of “equal holdings”, i.e., excluding identified items affecting comparability, the increase was much smaller and can primarily be attributed to a refrigerant leak in one of our properties.

Climate impact, tonnes CO2e, scope 1–2 20222022 (equal holdings)

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

The calculation includes our operations and properties in the companies where we have an ownership of more than 50 per cent.

To calculate emissions,we prefer to use emission factors from our suppliers.

Scope 2 includes calculations of all the energy used in our properties because,as owners,we control the energy performance and sources for the property.It thus includes all the energy that Backahill purchases,but also the energy used by or purchased by our tenants. For properties where the tenant is responsible for contracts, we have used data from the tenant or made estimates based on average consumption for other properties.

We report both “market-based” and “location-based” climate impacts for greater transparency.In many cases,we lack information on the energy purchased by our tenants. District heating and gas consumption is adjusted to the normal year.

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

OPERATIONS

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

SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

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

Management of the Company’s strategic securities holdings in 2022 generated a good operating result and strong cash flow. Backahill Group still owns more than ten per cent of the shares in Diös Fastigheter AB (publ), Fabege AB (publ), Catena AB (publ), Wihlborgs Fastigheter AB (publ) and Brinova Fastigheter AB (publ). During the year, holdings in Wihlborgs increased.

Backahill AB created the company Backahill Invest AB. Subsidiary Backastad AB acquired the company Backastad Nöthagen AB.

Subsidiary Backahill Utveckling AB participated in a new share issue in the company Arenabolaget i Ängelholm AB. Backahill Utveckling AB’s associated company Ankarhill Fastighets AB completed the construction of a padel hall at Catena Arena. The shares in Ankarhill Fastighets AB have since been sold to Arenabolaget i Ängelholm AB.

In addition, Backahill Utveckling AB has acquired more shares in Foodhills AB and now owns 98 per cent of the company. Backahill Utveckling AB also acquired Bjäre Aviation AB.

Backahill Bjäre AB acquired additional shares in Båstadtennis & Hotell AB, owning 38 per cent of the company at the end of the year.

GRAM GROUP AB and its hotel operating subsidiaries have achieved good profit after financial items. The establishments show a growth in turnover and the occupancy rate has increased. Renovations have taken place at all of the establishments.

In March, it was announced that Backahill was selected to purchase the Hälsostaden part of the Södra Sjukhus area in Ängelholm. The property purchase, which comprises 61,000 square metres, means that the Company can now go ahead and realise Campus Ängelholm. Completion is expected to take place in 2023.

In Backastad Graninge Holding 1 AB, Brf Graningeutsikten was completed and handed over to the housing cooperative association.

Backahill Gamlegården AB sold the Banken 2 property in Båstad to an external buyer. The same company’s new construction, Banken 1, was completed during the summer, and Gamlegården i Båstad, which includes shops and apartments, was officially opened.

Backahill Båstad AB divested its subsidiaries Fastighetsutveckling i Båstad AB and Tomtbolaget AB to an external party.

The construction of a new car showroom on Backahill Taktäckaren AB’s property was completed and the tenant has moved in. In addition, Hamnbacken i Båstad AB sold two tenant-owned apartments in Brf Turistgården.

Company Backahill Neptus AB acquired the Hinden 6 property in Båstad.

There is new construction underway at the Fågelsången 3 property, owned by Backahill Bostäder AB, where around 70 new rental apartments are being built. Backahill Cityfastigheter AB’s Påfågeln 13 property is also being renovated, and Ängelholms Market, a new meeting place in Ängelholm, opened.

SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR

The new construction at the Fågelsången 3 property was completed and tenants moved in in three phases during March and April. Company Backahill Akvarellen 19 AB acquired the Argus 6 property in Båstad. Over the Easter weekend, Ängelholm Market was inaugurated in the renovated premises in the Påfågeln 13 property, Backahill Cityfastigheter AB. In March, subsidiary Backastad AB invested in the Slätto Value Add II fund and acquired shares in Neptunia Invest AB. Backahill AB is celebrating the 25th anniversary of the company during the year.

EXPECTED FUTURE DEVELOPMENT AS WELL AS SIGNIFICANT RISKS AND UNCERTAINTY FACTORS

Backahill will continue to be active and participate in the development of north-west Skåne. A strong balance sheet and stable cash flow means the Group is well-equipped for interesting projects in the future. Profitable growth with manageable risktaking is a fundamental business principle within the Group. The defined risk areas of business environment risks, operational risks and financial risks are managed continuously as an integral part of the business and with a clear strategy for each risk area. The operational and financial risks are estimated to have decreased in 2022.

FINANCIAL RISK MANAGEMENT Interest rate risk

The Company has long-term credit facilities with set conditions which at present include a three-month fixed interest term.

Credit risk

Current credit facilities amount to SEK 1,997 million, of which SEK 1,244 million was utilised as at 31 December 2022. 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. During the year, the Company has fully settled all financing concerning shares. The Company will use working capital for investments in properties and projects.

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):

Consolidated income statement

Consolidated balance sheet

Consolidated statement of cash flows

Parent Company income statement

Parent Company balance sheet

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 and BFNAR 2020:1 Certain accounting issues due to the coronavirus

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

Translation of foreign currency

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.

Change of accounting principle

As a result of the amendment to the general advice in BFNAR 2012:1, only income tax and paid preliminary tax are classified as current tax assets or current tax liabilities as of this financial year. Income tax refers to all taxes calculated on the company’s taxable profit. Other taxes are classified as other liabilities (current).

Where there is a tax loss and the preliminary tax paid is intended to cover other taxes, it is offset against these taxes and recognised in other receivables (current) or in other liabilities (current). Comparative figures, cash flow statements and key figures have not been restated.

In other respects, the accounting principles are unchanged from the previous year.

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 per cent but no more than 50 per cent of the votes in another company.

Change in composition of the Group

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

Backahill AB acquired all the shares in the newly formed company Backahill Invest AB.

Backahill Utveckling AB acquired all the shares in the newly formed company Bjäre Aviation AB.

Backahill Utveckling AB also acquired additional shares in Foodhills AB, which then became a subsidiary.

GroPro Solution AB acquired shares in GroPro AB, which also becomes a subsidiary.

Backastad AB acquired all the shares in the newly formed company Backastad Nöthagen AB.

The following companies were sold: Backahill Båstad AB divested Tomtbolaget i Båstad AB and Fastighetsutveckling i Båstad AB.

Brf Graningutsikten has been occupied as of 31 December 2022 and has therefore been handed over.

The following companies were liquidated: Chart Invest AB, Backastad Graninge 10 AB and Graningeutsikten AB were liquidated during the financial 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 per cent 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

Goodwill

Investment properties

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

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

Component classification

Tangible fixed assets have been divided into components where the components are significant and where the components have substantially different useful lives. When a component of a fixed asset is replaced, any remaining portion of the old component is scrapped and the new component’s cost is capitalised. Costs for ongoing repairs and maintenance are recognised as expenses. The Group reports major tenant fit-outs according to the expanded definition of repairs.

The acquisition value of tenant fit-outs is distributed and expensed over 3–15 years. Values that have not been expensed are reported under Land and buildings in the balance sheet, and amounts expensed during the year are reported as depreciation in the income statement.

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 group 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

10 years

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

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

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.

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.

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 557,985 thousand. This corresponds to a deferred tax asset of SEK 114,945 thousand, but in order to remain prudent no deferred tax asset is recognised. The tax loss in the Group amounts to SEK 634,170 thousand. This corresponds to a deferred tax asset of SEK 130,639 thousand. Of this, only SEK 179 thousand is recognised, which is expected to be utilised against future profits.

Note 2 Net sales breakdown

Note 3 Leasing agreements, lessor

The year’s leasing rental income relating to lease contracts amounts to SEK 154,528 thousand (SEK 154,616 thousand).

The year’s variable income relating to leasing contracts amounts to SEK 13,491 thousand (SEK 13,309 thousand). Claims relating to future leasing payments, under noncancellable leases, fall due as follows:

As of the 2022 financial year, the Parent Company will invoice a management fee to all Group companies.

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 81,892 thousand (SEK 71,998 thousand).

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

Note 7 Employees and personnel

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

PARENT COMPANY

The year’s leasing costs relating to leasing contracts amount to SEK 2,604 thousand (SEK 2,584 thousand).

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

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.

Severance pay agreements

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

Note 8 Result from participations in group companies

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

Note 11 Other interest income and similar profit/loss items

Note 12 Interest expense and similar profit/loss items

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

Note 14 Capitalised expenditure for development work and similar

Note 16 Land and buildings

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 18 Equipment, tools, fixtures and fittings

Note 19 Construction in progress and advance payments for tangible assets

Note 20 Shares in associated companies and jointly-controlled companies

Note 21 Specification of participations in associated companies and jointly-controlled companies

PARENT COMPANY

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

Note 22 Shares in associated companies and jointly-controlled companies

Note 24 Other long-term securities held as fixed assets

As of 11 May 2023, the market value of the above holdings amounted to SEK 4,551,732 thousand.

As of 11 May 2023, the market value of the above holdings amounted to SEK 388,269 thousand.

Note 23 Receivables from associated companies and jointly-controlled companies

Note 25 Shares and participations

Note 28 Other long-term receivables

Note

Note 31 Number of shares and quota value

Note 38 Interest and dividends

GROUP

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

31/12/202231/12/2021

Note 39 Acquisition of subsidiaries GROUP

The following were acquired during the year: Backahill Invest AB on 26/01/2022, Bjäre Aviation AB on 01/07/2022, and Backastad Nöthagen AB on 31/01/2022. 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 10/01/2022 and 20/12/2022 respectively. GroPro AB produces and distributes vegan food products. Foodhills AB grows and sells frozen green peas.

During the previous year, Backahill Jungfrun 1 AB was acquired on 01/06/2021, Backahill Torekov AB on 15/12/2021, Backahill Loglängan AB on 01/06/2021, and Backastad Kavalleriet AB on 28/04/2021. The companies are involved in the rental and management of properties. In addition, PMSA Aktiesparklubb AB was acquired on 30/04/2021. The company owns and manages securities. Pepes Bodega was acquired on 05/10/2021 and receives royalties for the name Pepes Bodega. BLLB Fastigheter AB was acquired on 29/07/2021. The company manages properties and conducts property transactions, and manages interests in development companies and projects. GroPro Solution AB was acquired as of 30/11/2021 and conducts the production and distribution of food products. For further information, see Note 44.

Note 40 Cash and cash equivalents

Note 42 Appropriations

Note 41 Intra-group purchases and sales

PARENT COMPANY

Purchases during the year include intra-group purchases totalling SEK 2,064 (previous year 1,768) thousand. Sales during the year include intra-group sales totalling SEK 44,716 (previous year 3,126) thousand.

Note 44 Specification of participations in group companies PARENT COMPANY

Note 44 cont.

Note 45 Receivables from Group companies

Note 48 Pledged assets

Note 46 Appropriation of the profit or loss

Proposed appropriation of profits

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

follows: Carried forward3,541,623

Note 47 Contingent liabilities

Note 49 Significant events after the end of the financial year GROUP

The new construction of the Fågelsången 3 property was completed and tenants moved in in three phases during March and April. Company Backahill Akvarellen 19 AB acquired the Argus 6 property in Båstad. Over the Easter weekend, Ängelholm Market was inaugurated in the renovated premises in the Påfågeln 13 property, Backahill Cityfastigheter AB. In March, subsidiary Backastad AB invested in the Slätto Value Add II fund and acquired shares in Neptunia Invest AB. Backahill AB is celebrating the 25th anniversary of the company during the year.

Sara Karlsson

Ängelholm, 26 May 2023

Lennart Mauritzson CEO

Our audit report was submitted on 26 May 2023

Ernst & Young AB

Per Karlsson Authorised Public Accountant

Svante Paulsson Bo Forsén Chairman

Jan Litborn

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 01/01/2022–31/12/2022. The Company’s annual report and consolidated financial statements are included on pages 83–115 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 2022, 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 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 1–82 and 118–119.

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 material uncertainty factors regarding any events or circumstances that could lead to significant doubts about the Company’s and Group’s ability to continue as a going concern. 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 01/01/2022–31/12/2022.

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, taking into account the nature, scope and risks activities 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, financial management 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 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, 26 May 2023

Ernst & Young AB

Per Karlsson

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

Svante Paulsson Strategy & Projects

Lennart Mauritzson Group CEO/President

Magnus Swärdh CFO

Jerry Zander Property Director

Dag Thulin Marketing & Project development

Fredrik Henrysson Property and Bjäre project

Sara Karlsson Strategy & Projects

David Ingsten Sustainability Director

Backahill

Svenskehögsgatan 11

SE262 33 Ängelholm

+46 (0)431 41 51 00

backahill.se