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First quarter 2008

Vasakronan - Sweden’s leading real estate company Håkan Bryngelson President & CEO Interim Report January-March 2008 Björn Lindström Chief Financial Officer Moderator Tobias Kaj Handelsbanken. First quarter 2008. Vasakronan – Sweden’s leading real estate company.

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First quarter 2008

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  1. Vasakronan - Sweden’s leading real estate company Håkan BryngelsonPresident & CEO Interim ReportJanuary-March 2008 Björn LindströmChief Financial Officer Moderator Tobias KajHandelsbanken First quarter 2008

  2. Vasakronan – Sweden’s leading real estate company Håkan BryngelsonPresident & CEO

  3. Change of ownership Resolution in the Swedish Parliament regarding sale on June 20, 2007 Extent, method and date is a matter for the owners Advisors JP Morgan Financial advisor Catella Property advisor, Sweden Cederquists Legal advisor, due diligence WSP, Sweco Technical and Environmental advisor PWC Öhrlings Financial due diligence Vasakronan is prepared for a change of ownership Market-leader in the property sector One of Sweden’s most analyzed and transparent property companies Works according to high market standards for communication, financial reporting and Codes 3

  4. Agenda • Summary Q1, 2008 • Market • Strategic position • Customer orientation • Continued growth • Focus on cost • Interim Report January-March 2008

  5. Summary Q1, 2008 Market Continued strong rental and property market Difficult to forecast economic development SEK M % Rental revenues 757 + 7 Operating surplus 518 + 10 Market value, property portfolio 46,104 +0.4

  6. Summary Q1, 2008 • Start of new projects • Heden 42:4, Göteborg SEK 580 M • Lorensberg 45:16, Göteborg SEK 50 M • Property acquisitions • Tigern 1, Malmö SEK 67 M • Lorensberg 45:16, Göteborg SEK 125 M • Major rental agreements • Tax Authority, Stockholm 13,200 m2 • BDO Nordic, Stockholm 2,800 m2 • TAT, Malmö 2,600 m2 • Great Communications Award

  7. Swedish GDP • Difficult to forecast developments in the international economy • Reduction of Swedish GDP-growth, but moderate slowdown of Swedish economy F F F F Sources: Swedish National Statistics och Ministry of Finance 7

  8. Market rentsOffices - City locations SEK/m2 Stockholm • Continued strong • rental market • Increased market rents • Lower rate of increase Göteborg Malmö Uppsala Lund* 2004 2003 2005 2006 2007 2008 *Lund incl IDEON Source: Jones Lang LaSalle 8

  9. Market yield requirementsModern offices in prime locations % • Continued stable • property market • Same level of transactions during first quarter 2008 as first quarter 2007 • Unchanged yield requirements in Stockholm • Slightly increased yield requirements on other markets Lund* Uppsala Malmö Göteborg Stockholm 2003 2004 2005 2006 2007 2008 *Lund incl IDEON Source: Jones Lang LaSalle 9

  10. Market vacancy rateOffices - city locations % • Continued low • vacancy rates • Decline in Stockholm and Uppsala • Moderate increases in Malmö and Göteborg • Stable in Lund Göteborg Malmö Stockholm Lund* Uppsala 2007 2008 2003 2004 2005 2006 *Lund incl IDEON Source: Jones Lang LaSalle 10

  11. Vasakronan today • 46.1 billion in market value • SEK 2.9 billion in rental revenues • 172 properties • 395 employees of which 159 in Vasakronan Service Partner Rental revenues, % Uppsala 6 Lund 3 Residential 1 Other 6 Garage/warehouse 4 Malmö 15 Retail 13 Office Stockholm 60 76 Göteborg 16 99% commercial 11

  12. Vasakronan’s key strategies Market-leading position Attractive growth markets Commercial properties Stockholm, Göteborg, Malmö,Uppsala and Lund • Rental market • Attractive premises and services • Strong customer relationships • Active market approach • Real estate market • Project development • Acquisitions and exchangedeals 12

  13. Financial trend SEK M Income after net financial items, excl. change in market value Rental revenues Operating surplus Forecast 13

  14. Breakdown of market value SEK M Lund 1,906 Uppsala 2,256 4% 5% Malmö5,921 Stockholm 27,750 13% Göteborg 8,271 60% 18% Total SEK 46,104 M 14

  15. Vasakronan’s strategic position • Strong customer • orientation • Strong growth in rental revenues • Most satisfied custo-mers in the industry • Services for increased customer loyalty • Environmental focus • Strong corporate • culture • Most attractive employer in real estate industry • Low employee turnover • Focus on costs Focused growth • Focus on offices in growth cities • Strong property development portfolio • Acquisitions and exchange deals Strong corporate brand Sweden’s leading real estate company

  16. Satisfied customersSatisfied Customer Index Customer orientation • Location • Handling complaints • Service • Adaptation of premises • Image Vasakronan Average Property Sector 16

  17. Restaurant Conference facilities Tenant service Reception with RoomService Telephony Services through partners Services to achieve increased customer loyalty Customer orientation Meet customers on a daily basis 10 years continuous growth Established in large property clusters 17

  18. Vasakronan– first climate neutral real estate company Customer orientation Tons CO2 CO2 emissions from 29,000 ton to 1,500 ton Reduction with over 90 % per m2 since 2003 Added emissions if deliveries had not been climate neutral Real emissions 18 18 18

  19. Results of Vasakronan’s customer focus Customer orientation Satisfied customers Low turnover of customers % Vacancy rate, rental loss Employee participation/motivation % 19

  20. Strong project portfolio Growth • 88% leased • High increase of value • Long-term contracts • Strong customers Projects in progress, SEK M 20

  21. Growth Project development Projects in progress SEK 3,9 billion Large project potential SEK 6,1 billion • Future projects • Development projects • Detailed development plans but unutilized building rights • Potential building rights

  22. Investment Floor Est. Vacancy rate, Location Property SEK M space m2 completion area, % Göteborg Heden 42:1, Polishuset 794 43,000 Dec. 2009 0 Göteborg Heden 42:4, Kriminalvården 580 28,715 June 2010 0 Stockholm Fruktkorgen 1, Kungsholmen 550 23,910 Dec. 2009 0 Lund Nya Vattentornet 4 540 27,550 Dec. 2008 0 Stockholm Svea Artilleri 14, Östermalm 419 17,233 Dec. 2010 100 Göteborg Heden 46:1 Tingsrätten* 160 16,455 Dec. 2009 0 Göteborg Nordstan 8:27 135 16,260 Aug. 2008 0 Stockholm Beridarebanan 11, City 114 8,800 June 2008 25 Lund Spettet 3 108 8,680 Dec. 2008 0 Stockholm Vega 4, City 88 3,931 June 2008 55 Malmö Kronan 10 & 11 84 13,369 Dec. 2008 13 Göteborg Lorensberg 45:16 50 6,800 June 2009 0 Total 3,622 214,903 12 Other minor projects 102 Total 3,861 * Jointly owned with NCC Growth Projects in progress 22

  23. Growth Ullevi, Göteborg • Police Headquarters • New construction of 30,000 m² • Remodeling of 13,000 m² • SEK 794 M • Prison and Probation Service • New construction and remodeling of 28,715 m2 • SEK 580 M • City Court • New construction of 16,500 m² • NCC owns 50 % • SEK 160 M, Vasakronan’s share 23

  24. Projects Stockholm Svea Artilleri Remodeling of 17,233 m2 Signed first tenant Completion 2010 SEK 419 M Growth • Rådhuset • Remodeling and new construcition of 23,900 m² • Completion 2009 • SEK 550 M • Fourth Hötorg Building • Remodeling of 8,800 m2– 75 % leased– SEK 3,900 – 5,000/m² • Completion 2008 • SEK 114 M 24

  25. Brunnshög, Lund Growth Sony Ericsson owned by Vasakronan • New construction of 27,550 m2 for Sony Ericsson • 1,600 workplaces • Occupancy Q2 2008 • SEK 540 M Sony Ericsson owned by Vasakronan Business Park Project owned by Vasakronan Ericsson Mobile Platform 25

  26. Strong corporate culture Most attractive employer in the real estate industry First choice for university students in real estate economics High employee rating on commitment, job satisfaction and pride Low employee turnover Corporate culture

  27. Focus on cost Focus on procurement Insourcing Corporate culture SEK M

  28. Vasakronan’s future focus! 28 • Customer orientation • Focused property portfolio and growth through projects and exchange deals • Strong corporate culture and focus on cost • Unique, leading and strong operation provides added value for customers and owners • Own management organization with a high level of expertise • The market’s most attractive employer • The market’s highest customer satisfaction and lowest vacancy rate in the market • Strong corporate brand

  29. Interim Report January-March 2008 Björn Lindström Chief Financial Officer

  30. Increased rental revenues+ 7 % Contracted / reported annual rent + 15 % Vacancy rate declined to 5 % Operating expenses and maintenance - 7 % Value growth property portfolio + 0.4 % Current tax SEK 0 M Project portfolio increased to SEK 3.9 billion Summary Interim Report January - March 2008 30

  31. Rental revenuesJan-March %2008 2007 2006 Change in comparable+ 3 + 6 + 4property portfolio Acquisitions, new + 4 + 2 - 5construction & divestments Total change in + 7 + 8 - 1rental revenues SEK M 31

  32. Negotiation and renegotiation of rental portfolio Jan-March % 2008 2007 2006 Average rental change+9 +3 +3 Share of rental portfolio 2 2 1 Average rental term, years 4.9 4.5 4.0 32

  33. Rental revenues – future growth March 31 SEK M 2008 2007 2006 Contracted annual rent 3,358 3,057 2,767 Reported 12-month rent 2,923 2,757 2,681 Rental growth 435 300 86 Rental growth, %15 11 3 33

  34. Vacancy rateMarch 31 2008 2007 2006 Rental value , % 5 6 7 - SEK M 157 173 199 Floor space, % 6 7 8 000 m2115 115 136 Vacancy rate, rent Rental value, % 2008 2007 Central Stockholm 4 6 Greater Stockholm 1111 Uppsala 5 5 Göteborg 2 2 Malmö 3 3 Lund 1 1 Total 5 6 34

  35. Operating expenses and maintenanceJan-March %2008 2007 2006 Change in comparable - 7 -4 -12property portfolio Acquisitions, newconstruction & divestments 0 +1 +7 Total change - 7 -3 - 5 SEK M 35

  36. Financial itemsMarch 31 SEK M 2008 2007 2006 Net interest-bearing liabilities12,891 11,331 11,036 Interest rate %, 4.4 3.3 3.7 Net financial items123 89 99 Market rate comparable portfolio 2008-03-31 5.2 % 36

  37. Market value31 March SEK M 2008-03-31 2007-03-31 2006-03-31 Market value at January 1 45,236 38,122 32,827 Investments 508 250 171 Acquired properties 198 97 1,025 Divested properties - -36 - Unrealized change in value 162+ 0,4% 497 +1,3 % 321 +1,0 % Market value, March 3146,104 38,930 34, 344 • Market value Q1, 2008 • Internal update of previous quarter external appraisal • Market value is affected by changes in market rent and yield requirements after reconciliation with DTZ and Newsec • Market value is influenced by specific property occurrences 37

  38. Unrealized change in value March 31, 2008 Unrealized change in value per quarter, SEK M 38 • Newly signed contracts • Investment profit in projects

  39. TaxJan-March SEK M 2008 2007 2006 Current tax 0 0 -54 Deferred tax -147 -239 -155 39

  40. Income statement January-March Change SEK M2008 2007 SEK M % Rental revenues 757 708 +49 +7 Operating expenses -156 -160 +4 -3 Maintenance -9 -17 +8 +47 Site leasehold fee -22 -17 -5 -29 Property tax -52 -45 -7 -16 Operating surplus 518 469 +49 +10 Income building rights 0 0 0 Income associated companies -1 0 -1 Income service operations 2 0 +2 Central administration and marketing -17 -19 +2 Operating income 502 450 +52 +12 Financial net -123 -89 -34 Income after financial net 379 361 +18 +5 Change in values 149 502 -353 Current tax 0 0 0 Deferred tax -147 -239 +92 Income after tax 381 624 -243 -39 40

  41. Key ratios Jan-March %2008 2007 2006 Operating surplus margin 68 66 63 Interest-coverage ratio, multiple 4.1 5.1 4.5 Return on shareholders’ equity 18 17 11 Multiple % Interest-coverage ratio Operating surplus margin 41

  42. Cash flow Jan-March SEK M2008 2007 2006 Current operations 330 262 -107 Investing operations -704 -307 672 Dividend - - - Total cash flow -374 -45 565 SEK M 42

  43. Ongoing property projects March 31 SEK M2008 2007 2006 Property projects3,861 2,995 1,450 Investment in projects506 256 165 Development operating surplus,ongoing projects, SEK M 43

  44. Balance sheet SEK M 2008-03-31 2007-03-31 Change Investment properties 46,180 38,988 +7,192 Deferred tax claims 210 355 -145 Financial assets 281 523 -242 Current receivables 678 902 -224 Cash and bank 455 5 +450 Total assets 47,804 40,773 +7,031 Shareholders’ equity 26,110 22,430 +3,680 Deferred tax liabilities 6,263 4,789 +1,474 Interest-bearing liabilities 13,525 11,719 +1,806 Non-interest-bearing liabilities 1,906 1,835 +71 Total Shareholders’ equity and liabilities 47,804 40,773 +7,031 44

  45. Key ratios %2008 2007 2006 Equity/assets ratio55 55 52 Loan to market value 28 29 32 Equity/assets ratio % 45

  46. Financing – Sources 2008-03-31 of which Share, % SEK M Limit utilized Commercial paper 5,000 2,715 20 MTN program 20,000 5,424 40 EMTN program 9,374 92 1 Bank loans 11,272 5,262 39 Total – 13,493100 Vasakronan have unutilized bank loans amounting to SEK 6,010 M 46

  47. Unchanged forecast SEK M2008 2007 Income afterfinancial items excl. income from 1,5001,477building rights 47 +Increased rental revenues + Improved operating surplus -Increased interest expenses +Increased investments

  48. Tobias Kaj Handelsbanken Moderator

  49. Real offices for real people 49

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