Development and construction of shops Nordic Retail 14 April 2011

1. Development and construction of shopsNordic Retail 14 April 2011 Lotta Strömgren Jönsson Vice President NCC Property Development south Sweden NCC AB

2. Content • NCC in short • Future retail by NCC • Big box versus city center • Challenges in developing city centers • Green buildings – do retailers even care? NCC AB

3. Creating future environments for working, living and communication • Sales of SEK 49.4 billion SEK in 2010 • 16,700 Employees • Domestic markets in the Nordic region, Germany, the Baltic countries and St. Petersburg • Thousands of projects, both large and small • Sustainable development – focus on energy NCC AB

4. Nordic leader in constructionand property development AGGREGATES, ASPHALT, PAVING AND ROAD SERVICES DEVELOPMENT OF COMMERCIALPROPERTIES CONSTRUCTIONAND CIVILENGINEERING HOUSINGDEVELOPMENT NCC AB

5. NCC and sustainable development Buildings account for approximately 40% of society’s energy consumption (80% consumption, 20% production) NCC has the possibility and responsibility to reduce the climate impact – within all business areas NCC Goals: Reduce climate impact, focus energy Create healthy, developed environments Decrease use of hazardous substances Contribute to recovery of materials and products NCC AB

6. start Value chain – NCC Property Development Analysis Transaction Composition Acquisition • Contact with and knowledge of the right investors for the particular product • Develop ideas that can be converted into products with the correct positioning Acquire the right land at the right price at the right time Adapt to customer needs and coordinate with Construction to meet and exceed expectations NCC AB 2009-03-05

7. Future Solutions by NCC

8. Big boxes versus City centers City centers • Few opportunities • Unique products – but repetitive process • Complex and complicated • Often multi use • Often infrastructure • Few competitors • Stable market • Process > 5 years • Extensive management • Fewer investors Big boxes • Many opportunities – chose wisely! • Repetitive product • Technically rather • uncomplicated • Many competitors • Volatile market • Process 1-5 years • Easy management • Many investors NCC AB

9. Example:Project Triangeln • 12 000 sqm retail – app. 70 shops • 5 000 sqm office • 180 apartments • 400 underground parkings • Adjoining existing shopping center • Next to the new train station Triangeln • Construction started 2010 • Initiated before year 2000 • To be finalized 2013 NCC AB

10. Triangeln - 1910 NCC AB

11. Triangeln - February 2011 NCC AB

12. Triangeln 2013 - 2014 NCC AB

13. Triangeln 2013 - 2014 NCC AB

14. City center projects are challenging – Triangeln has it all! • Demanding surroundings • Complicated construction phase • Multi use - Complex design and layout process • Complex 3D • Challenging commercial process ….And that’s why we like it! NCC AB

15. Demanding surroundings • In the middle of Malmö City • In focus for all citizens and stake holders • Neighbors both living and operations effected through out the process • Often very long processes • Costly land • Multi projects • Infra structure • High expectations from many stake holders Bild kyrkan eller msk i rörelse NCC AB

16. Complicated (and expensive!) construction phase • Narrow working area • Nowhere to establish • Vast infra structure Project • Restricted in;- transportation- noise- working hours • Surroundings:- a church- a hotel- housings- a shopping center, and - a recently opened train station! • More than 100 000 people are expected to pass this spot every day! NCC AB

17. Multi use - Complex design and layout process Every end user, and developer, and investor has specific demands for an +A product! All these demands have to be integrated into one single design Every product demands its special developing and production skills – all these have to be integrated into one project organization Core qualities must be guarded for all products NCC AB

18. Complex 3D project • Assets need to be packaged to meet future investors/owners demands • Assets need to be entirely separated technically • Yet - technical cooperation is needed • How to deal with succesivly construction end? – every developers night mare NCC AB

19. Challenging commercial process More than 60 leases Imagine when retailers are doing there fitting out works – at the same time as NCC are finalizing, testing and inspecting- more than 400 people will be working at the site! Sale based rents – not attractive to developers or investors Investors prefer established retailers – difficult for a developer to be inventive A developer needs to foresee the future owners demand for managing process and services NCC AB

20. NCC and sustainable development Buildings account for approximately 40% of society’s energy consumption (80% consumption, 20% production) NCC has the possibility and responsibility to reduce the climate impact – within all business areas NCC Goals: Reduce climate impact, focus energy Create healthy, developed environments Decrease use of hazardous substances Contribute to recovery of materials and products NCC AB

21. Green Building;Investors demand it but….do retailers even care? • GreenBuilding means lowering the consumption of energy by 25 % compared to standards • NCCs vision is to develop GreenRetail • This demands:- lower cooling effects- LED lightning • Retailers claim that LED is to expensive and do not meet their demand This is a future challenge! NCC AB

22. For questions or information.… Lotta Strömgren Jönsson NCC Property Development + 46 734 15 43 29 lotta.stromgren.jonsson@ncc.se Thank you! NCC AB