Akademiska Hus Annual Report 2012, PDF

eportAkademiska Hus Annual Report 2012We believe thatknowledge canchange the world and thatbrilliant ideas will shapeSweden as a nation ofknowledge. We are thecountry’s secondlargest propertycompanyand witha focuson universi- ties andcolleges,we build and managesus- tain able knowledgeenviron- ments for the whole person.Through pioneering technology, innovativeideas and long-term thinking, weare contributing to a wiser Sweden!

Contents2012 in brief 1Akademiska Hus – Presentation 2Statement by the President 4Vision, strategy and objectives 6CUSTOMERS AND MARKETHigher education and research 8Rental and property market 13Regions 15Regional overview 21Five-year summary 22Prospects and forecast 24Competitors 27Market share 28PROPERTY MANAGEMENTLease agreements, rental revenue and vacant space 29Operating and maintenance costs 32Profitability and yield 35FINANCIAL POSITIONProperty valuation 37Construction operations 42Financing 48Risks and sensitivity analysis 52SUSTAINABLE ENTERPRISEFinancial responsibility 56Environmental responsibility 58Social responsibility 64Stakeholders and sustainability issues 68CORPORATE GOVERNANCE REPORTCorporate Governance 70Board of Directors 71Executive Management 74Remuneration 75Internal control report from the Board of Directors 77CONTENTS – FINANCIAL STATEMENTS 80Summary of the year 81Proposed allocation of unappropriated earnings 82Income Statements 83Consolidated Statement of Comprehensive Income 84Balance Sheets 85Changes in equity 87Cash Flow Statements 89Notes 90Audit Report 118Property specification 121Definitions and addresses 136The statutory Annual Report, including the AdministrationReport, has been audited and comprises pages 1–3, 6–23,27–69 and 80–135.The Sustainable Enterprise section forms part of theAkademiska Hus Sustainability Report. Other parts of theSustainability Report can be found at akademiskahus.se.

2AKAdEmISKA HuS 2012AKADEMISKA HUS – PRESENTATIONAkademiska Hus – PresentationWe are reinforcing Sweden as a nation of knowledgeWe are achieving this together with universities and colleges by building, developing and managingmodern environments for research, education and innovation.Knowledge andknowledge environmentsmajor investments regardlessof the economic climateWe are owned by the Swedish Government.The stable ownership structure andlong-term customer relationships make usan attractive borrower on the bond market.This means that we have the capacityto allow colleges and universities to growregardless of the economic climate. Thisis a source of security for our customersand a guarantee that Sweden can continueto develop as a nation of knowledge.Each year, we make substantial investmentsin new construction and redevelopmenton Swedish campuses. Projectsworth over SEK 22 billion are planned overthe next few years.Our vision:World leader inknowledge environments.The leading provider ofpremises to universitiesand collegesWe are one of the largest property ownersin the country. According to the ownerdirective, we must act in accordancewith market conditions and in opencompetition. This means that AkademiskaHus works on the same terms andconditions as other commercial propertycompanies. A market share of 63 percent makes us the leading provider ofpremises to universities and colleges.However, size also means responsibilityand if we are to avoid distorting thecompetitive equilibrium, it is importantthat our rents, terms and conditions remainin line with the rest of the market.universities and colleges are our dominantcustomer group and account foraround 90 per cent of our revenue. Awell-informed understanding of the educationand research methodology of thefuture is vital if we are to be in a positionto offer premises that meet our customers’needs and challenges.The development of campuses takesplace together with students, researchers,teaching staff, community representativesand industry, and generates growthfor the whole region. Our contribution tothis process is our collective knowledgeand experience.Ourpropertiesare to be foundthroughout thecountry, from Kirunain the north tomalmö in thesouth.We are one of severalOur owner has given usAt a number of locationsplayers on a marketwhere customers can negotiatethe solution that%clear financial targetswith regard to yield, equityratio and dividend.in Sweden, AkademiskaHus has a strong positionand this entailsbest meets their needs.The yield target is theconsiderable marketTo avoid distorting competition, our rents,five-year government bond interestresponsibility.terms and conditions must be in line withrate plus four percentage points. Overother players on the property market. Ourthe past five years, yield has been 5.9 perrents are competitive and transparent.cent and the target was 6.4 per cent.Everything we do must be cost effectiveand be conducted on business terms.

AKAdEmISKA HuS 2012AKADEMISKA HUS – PRESENTATION3Artists’ impression of Biomedicum, KarolinskaInstitute, Solna. Illustration from BergArkitektkontor/Arkitektfirmaet C.F. Möller.To allow other playersto come in, AkademiskaHus has sold or leasedland on a number ofoccasions to allow, forexample, student accommodation to bebuilt adjacent to university and collegebuildings. Akademiska Hus also co-operateswith other property companies todevelop the premises being sought by thecentres of education.linked to the company’sowner directive, the factthat Akademiska Husowns land adjacent touniversities and collegesis a long-term guarantee that thesecentres of education can continue todevelop directly beside existing buildings.As one of the largestproperty companies inSweden, AkademiskaHus has considerablesocial responsibility. Asa long-term partner for universities andcolleges, we want to be involved in reinforcingSweden as a nation of knowledge.

4AKAdEmISKA HuS 2012STATEMENT BY THE PRESIDENTStatement by the PresidentSustainable knowledge environmentsIt is in dialogue with our customersthat we are making new advances.Through pioneering technology, innovativeideas and long-term thinking, weare building sustainable knowledge environmentstogether with centres of educationthroughout the country. I am thereforepleased to report that we have nowset in motion a more open, constructivedialogue with our customers. My newmanagement team and I feel that this isextremely important. Among otherthings, we have had the opportunity todiscuss with the Swedish Association ofHigher Education in a range of matters,from issues related purely to premises toour role in the education system. I havealso met the management teams at manyof our centres of education to discusshow we can assume greater transparencyand focus even more on contributing tothe development of centres of learning aseffectively as possible in the future. Here,in our Annual Report, we demonstrateclearly the importance of transparencyand presenting facts and documents relatedto a number of issues we are facedwith at present. This could take the formof setting of rents through to how we dealwith our market situation.Another example of a constructivedialogue is the production of our campusplans in close collaboration with centresof education and with the city and otherstakeholders in the immediate area.During the year, we produced new, forward-lookingcampus plans for LundUniversity, the Swedish University ofAgricultural Sciences in Alnarp, LuleåUniversity of Technology and Albano inStockholm.Another important issue that we areat times required to address is the constructionof student accommodation. Wedo not become involved in the actualconstruction although we attempt as faras possible to create conditions for otherplayers to build student accommodation– at Medicinarberget in Gothenburg forexample, where we lease land to SGS Studentbostäder.This agreement is just onein a series of agreements through whichwe are facilitating the construction ofaround 5,000 student apartmentsthroughout the country.AN EVENTFUL YEARMARKED BY INNOVATION2012 was a year marked by innovation. Itwas the year in which the Governmentpresented its Research Bill and NationalInnovation Strategy. A clear direction isthat major investment in research andinnovation is continuing, particularly forthe large centres of education, with anemphasis on collaboration between research,industry and the community.Our involvement in the expansion of theKarolinska Institute and the constructionof Stockholm Life in the new cityarea of Hagastaden are good examples. Itis here that academia and industry meetto carry on cutting-edge research in LifeScience. At the end of November, theWiderströmska Building was completedand the new, magnificent Karolinska InstituteHall will be ready for use duringthe summer. The third building in theKarolinska Institute Science Park will becompleted in 2013 and we are due tocommence construction of the Biomedicumresearch laboratory. A largeproportion of our project portfolio ofSEK 26 billion is in the form of researchintensivebuildings in the Stockholm-Uppsala region.We have also begun construction ofNiagara, the new icon building for MalmöUniversity, which will be the gateway fordevelopment at Universitetsholmen andan important feature of the University’sphysical identity. These are just a selection.Read more about our regional developmenton pages 15–21.A future project in every sense hasalso come one step closer to becoming a reality.The detailed plan for Albano wasadopted at the end of the year. What thisentails is a unique socio-ecologicallyplanned campus area with research andeducation buildings interspersed withaccommodation for students and researchers.We have assigned researcherswith knowledge in socio-ecological urbandesign the task of contributing to the basisfor the planning process for Albano.The aim is to integrate ecosystems andcreate synergies with classic urban planningin order to reinforce the surroundingecosystems. The area acts as a linkbetween the Royal Institute of Technologyand Stockholm University but alsobrings together the campus and the city.SUSTAINABILITY IN FOCUSSustainability is of course one of ourmost important future issues. As a majorplayer in the property industry and as astate-owned company we have a particularresponsibility to remain at the forefront.We have the desire and capabilityto make a difference.We are already leading the way inmany areas and implementation of smarttechnical solutions means that an increasingproportion of our buildings haveextremely low energy use. One of ouraims is for all new buildings to be environmentallyclassified and, as a minimum,satisfy Sweden Green Building Councilsilver level certification stipulations.Our property management has an importantrole to play in our environmentaland energy work. That is why we areworking actively and systematically tooptimise operation and implementimprovements in energy-enhancingtechnology and systems.However, sustainable enterpriseextends beyond energy and the environment.Areas such as human rights, workingconditions, anticorruption, businessethics and equality and diversity areareas that also affect our capacity tocarry on sustainable enterprise. Themanner in which we develop campuses,with the social and physical environmentin focus, are also part of our sustainabilitywork, where we identify key areas forattractive, sustainable environments. Inaccord with our customers, we seek toformulate and gain acceptance for a longtermagenda – our sustainability promise– where profitability and sustainabilitygo hand in hand.STRONGER ORGANISATIONIf I were to summarise the past year, Ican see that we have taken a major steptowards performing even better in thefuture. An extensive efficiency-enhancementprogramme – Akademiska Hus 2.0– has been run during the year to makefull use of our potential. Change requiresstrong leadership. That is why we havefocused on a leadership programme to reinforceour managers and project leaders.At the end of the year, a merger wasimplemented, which meant that AkademiskaHus is now one company instead ofa group with six regional companies. The

AKAdEmISKA HuS 2012STATEMENT BY THE PRESIDENT 5change has given us greater strengthnationally and at the same time, we havecontinued to maintain our local presence.We have more power to inject into ourchange process and an even strongerfoundation as we head into the future.Alongside this, an extensive externalanalysis has been conducted during theyear. We have examined trends and conductedin-depth discussions with ourcustomers and community bodies andorganisations. We are now equipped totake the next step as we continue tocreate attractive knowledge and campusenvironments.We are working with major issues thatimpact on many people: from the individualstudent’s study environment throughto regional development and Sweden as anation of knowledge. Having the opportunityto work together with customersand colleagues on highly important,future-oriented issues makes me veryproud.Gothenburg March 14, 2013Kerstin Lindberg Göransson

6AKAdEmISKA HuS 2012VISION, STRATEGY AND OBJECTIVESVision, strategy and objectivesExternal focus increasinglyimportantIt isAkademiskaHus’s vision to be aworld leader in knowledgeenvironments. Togetherwith Swedish centres of education,we are developing knowledgeenvironments that attractstudents and researchers fromaround the world. By doing so,we will contribute to buildingSweden into a nation ofknowledge.To achieve our vision, a broader viewis required of how external forcesinfluence us, our customers andsociety in general. We also need to focusmore closely on our internal processes.During the year, the emphasis has beenon internal efficiency and external forces.The merger that took place at the endof the year means that Akademiska Husis now one company instead of a groupwith six regional subsidiaries. Overall,this provides an even stronger foundationfor a common way forward where we aredeveloping and creating optimal benefitfor our customers. A major change process,Akademiska Hus 2.0, has takenplace during the year with the aim ofcapitalising fully on our potential andstrength as a unified company. At thesame time, we have retained our regionalstrength and local presence. This workwill continue during 2013.Alongside this, an extensive externalanalysis was made during the year. Wehave examined trends and conductedin-depth discussions with our customersand other bodies and organisations in thecommunity. We are now equipped to takethe next step to create even greater valuefor our customers in the form of attractiveknowledge and campus environments.As a major player in the propertyindustry and as a state-owned company,we have a specific responsibility to remainat the forefront in sustainabilityissues. We are already well to the fore interms of the environment and energy.We will now take a major step forward insustainable enterprise, where we willSTRATEGIC OBJECTIVESThe control model withinAkademiska Hus aimsto support the vision ofbeing a world leader inknowledge environmentsand comprises five strategicobjectives: Successfulknowledge environments,Optimal delivery, Strongbrand, unique competenceand long-termprofitability and costefficiency.Each strategicobjective is followedup through one or moreobjective-based indicatorson the regional level.1. SUCCESSFULKNOWLEDGEENVIRONMENTS2. OPTIMALDELIVERYSTRATEGYWe work proactively to develop the knowledgeenvironments of the future. The basis for this isthe continued monitoring of the developmentand needs of centres of learning, as well asnational and international education policy.By combining our construction and managementexpertise with awareness of our customers’conditions, we will offer leading knowledgeenvironments. Energy efficiency measures andthe development of alternative forms of energyare high priorities.3. STRONG BRAND We demonstrate and clarify the benefit of AkademiskaHus as part of the creation of Sweden asa nation of knowledge. We make use of our collectiveknow-how to support our customersthrough active dialogue. Our internal and externalcommunication is founded on our core values:expert, active partner and future-oriented.OBJECTIVEAll campuses should have a documented visionregarding the physical environment and shouldbe no more than five years old.Energy purchased each year, kWh/m 2 , will decreaseat such a rate that there will be a 40per cent reduction by 2025 compared to 2000.In total, 90 per cent of the customers feelthat “the fault I reported was rectified to mysatisfaction”.From 2013, the brand index will increase by 15per cent per two-year period through to 2020.4. UNIQUECOMPETENCE5. LONG-TERMPROFITABILITYAND COSTEFFICIENCYThrough our good knowledge of the work thatis taking place in the academic world and theconditions that prevail, we have unique competenceand ability to understand the demandsand needs of our customers. We develop this byactively and systematically exchanging experience,both internally and externally, and usingour collective national expertise efficiently.We identify which properties and markets areprofitable in the long term and we pursueactive management of our contract stock andproject portfolio. We co-ordinate processes toensure that we work efficiently and in the longterm.In total, 90 per cent of employees feel that“my manager follows up my individual activityplan”.The net operating income ratio should be72 per cent.Average return on equity should beequivalent to the five-year governmentbond interest rate plus four percentagepoints over a business cycle.

AKAdEmISKA HuS 2012VISION, STRATEGY AND OBJECTIVES7broaden our perspective and integratesustainability work into the whole organisationand formulate a long-term set ofobjectives.During the year, we commenced workon clarifying our role and what we represent.This will also permeate our operationsin the future. In an open dialoguewith customers and the community, wewill continue our journey towards realisingour vision and building up Sweden asa nation of knowledge.Ångström Building, Linköping University100,0100,0100,0 87,587,575,075,087,562,562,575,050,050,062,537,537,550,025,025,037,512,512,525,012,5 0,00,00,0100,0100,0100,0 87,587,5100,075,075,087,587,562,562,575,075,050,050,062,562,5100,0 37,537,550,050,087,5 25,025,037,537,575,0 12,512,525,025,062,5 12,5 0,00,012,550,0 0,00,037,5100,0 25,0 100,012,5100,0 87,587,575,0 0,0 75,0100,0 87,562,562,587,5 75,050,050,075,0 62,537,537,562,5 50,0100,0 25,025,050,0 37,587,5 12,512,537,5 25,075,0 0,012,5 0,025,062,512,5 0,050,00,037,525,0100,0100,012,5100,087,5100,0 87,5 0,087,575,075,087,575,062,562,575,062,550,050,0100,0 62,550,037,537,587,5 50,037,525,025,075,0 37,525,012,512,562,5 25,012,50,050,0 12,5 0,00,037,5 0,025,012,5FULFILMENT OF OBJECTIVES100%100%100%100% 100%100%100%100%100%100%100%100%100%100%At the end of 2012, 68 per cent of thecampuses had documented campus plans.The target for 2012 was 68 per centRecalculation of the long-term objectivemeans that purchased energy will fall by twoper cent per annum. For 2012, the outcomewas a decrease of 3.5 per cent. The usageobjective for the year has thus beenachieved and in the long term, the outcomeis in line with plan.The target for dealing with faults in 2012was 87 per cent. The outcome was 88 percent (87.6).For 2012, the starting figure was 32 percent. Fulfilment of objectives in 2012 couldnot be measured.COMMENTWork on documented campus plans was intensifiedduring 2012, which shows that the objective has beenachieved.The trend for purchased energy corresponds to a lineardecrease, which will result in 40 per cent lower usagein 2025.A zero measurement of the target groups, customers,students and researchers, was conducted in 2012 toestablish a starting figure. measurement of the outcomewill take place in 2014. The target then will be37 per cent.FINANCIAL OBJECTIVESThe owner’s financial objectivesfor Akademiska Hushave been set as follows.• The return on averageequity should be the equivalentof the five-year governmentbond interest rateplus four percentage pointsviewed over a businesscycle.• The dividend should be 50per cent of the profit afterfinancial items, excludingunrealised changes in value,with a deduction forcurrent tax.• The equity ratio should bebetween 30 and 40 percent.Towards the end of 2012, theowner began a review of thecompany, which will entail a%re-examination 8of the financialobjectives.60,0100,0100,0100,0100,0 87,587,587,575,075,075,0 87,562,562,562,5 75,0100,0 50,050,050,0 62,537,5 87,5 37,537,5 50,0100%100%100%The outcome for 2012 was 83 per cent.The target for 2012 was 82 per cent.2012 is the third year we have had a systematisedprocess for individual action plans.42007 08 09 10 1125,0 75,0 25,025,0 37,512,5 62,5 12,512,5 25,050,0 0,012,50,037,50,025,0%12,50,0100,0100%15 Avkastning ege12Avkastningsmå87,575,062,5100,050,087,537,575,025,062,512,550,00,037,525,012,50,0100%The target for the net operating incomeratio in 2012 was 69 per cent and the outcomewas 69 per cent.The average return on equity over fiveyears was 5.9 per cent whilst the targetwas 6.4 per cent.Over the next few years, the net operating income willhave a long-term increase of 1 per cent per annum andwill be 72 per cent in 2015.As regards long-term profitability, the net operatingincome ratio is measured using operating profit, whichdoes not include maintenance linked to projects.96302008 2009 2010 2011 2012Average return targetover five yearsAverage return on equityover five years%15 Avk Gen12Avk Gen9

8AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: HIGHER EDUCATION AND RESEARCHHigher education and researchIncreased research fundingThe number of young people aged 19–23 years has now begun to fall slowly, reducing the basis for recruitmentinto higher education. The number of applications remains high, which can be attributed to the relatively weaklabour market for young people. The decrease in the student base is matched by an increase in government investmentin education and innovation. Consequently, the high demand for premises in the higher education sector isexpected to continue, which is confirmed by the extensive Akademiska Hus project portfolio.Soil-Water-Environment Centre, SwedishUniversity of Agricultural Sciences, UppsalaThe picture presented in the highereducation sector is somewhat contradictory.The number of applicantsis increasing and yet at the sametime the number of students admittedhas decreased – from just under 274,000to 272,000 between 2011 and 2012. Anexplanation for the fall is that for severalyears centres of education have hadadmissions that were above the fundinglevel, i.e. they did not receive any payment.The vast majority of centres of educationare now going through a periodof major cutbacks in funding. It is quitesimply ‘not profitable’ to continue toadmit so many new students. A newstrategy can be noted in the fact thatcentres of education are focusing moreon longer course programmes and therange of courses is decreasing.In 2012, the number of young peopleaged 19–23 years reached its peak. This isthe age range in which the majority beginhigher education. There is a clear trendtowards a larger proportion of 19-yearoldscommencing higher education andgoing directly from high school to university.Unemployment continues to behigh, which is also a factor behind themajor interest in higher education.According to the Swedish EmploymentAgency December forecast, the labourThe number of applications forhigher education will probablyfall. However, the assessmentis that the need for premiseswill remain stable. The newResearch Bill will mean that in thefuture the higher education sectorwill receive a substantialincrease in funding.market for young people is expected toremain weak for another couple of years.There will be stiff competition for jobswith lower education requirements,which ought to mean that the considerableinterest in higher education willcontinue even if the recruitment baseshrinks.In total, almost 50,000 students wereenrolled on different distance learningprogrammes. The vast majority of thesetook the form of single courses.NUMBER OF PEOPLE IN THE POPULATION AGED 19–23 YEARSForecast 2012–2025ENROLLED STUDENTS ATUNIVERSITIES AND COLLEGES700,000600,000500,000400,000300,000200,000100,00002002Source: Statistics Sweden2007201220172022500,000400,000300,000200,000100,00002001/20022003/2004mängd2005/20062007/20082009/20102011/2012Source: Swedish NationalAgency for Higher EducationEnrolled but not new studentsNew students from SwedenNew students from outside Sweden

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: HIGHER EDUCATION AND RESEARCH 9SUBSTANTIAL INCREASEIN FUNDINGEven in the previous Research Bill, thegovernment invested in research anddevelopment by gradually increasingresearch grants by a total of SEK 5 billionover a four-year period. With the newResearch Bill for 2013–2016, further increasesin grants totalling SEK 4 billionare proposed for the forthcoming fouryearperiod. This means that researchgrants will have risen by more than 30 percent over an eight-year period. Swedenbelongs to those countries within theOECD that allocate most resources toresearch and education. In 2011, Swedenassigned 3.5 per cent of the GNP toresearch.Approximately half of the increase ingrants will go directly to the centres ofeducation. In 2012, around 25 per centis expected to go to research fundingbodies and around 25 per cent will beallocated to other public agencies andspecial interest areas.A very high proportion of the increasein research funding will go to the universitiesin Stockholm and Uppsala, whichalready receive the majority of the researchfunding. This concurs well withthe emphasis in Aka demiska Hus projects,where approximately 75 per cent of theCompany’s project portfolio is in theStockholm/Uppsala region. Lund Universityand Gothenburg University alsoreceive a high proportion of the researchfunding. The concentration of grant allocationis high. The ten largest universitiesare expected to receive approximately85 per cent of the increase in grants.Through to 2016, the Karolinska Institute,Lund University and Uppsala Universitywill each receive additional funding inexcess of SEK 100 million. StockholmUniversity and Gothenburg Universitywill receive SEK 80–90 million and UmeåUniversity, Linköping University, theRoyal Institute of Technology, ChalmersUniversity of Technology and the SwedishUniversity of Agricultural Sciences willeach receive additional funding ofaround SEK 50 million. Others willreceive lower amounts although no centreof education will have its research fundingreduced.CAMPUSThe discussion regarding collaborationbetween industry, the community andacademia has been taking place for anumber of years and we are now beginningto see greater concretisation of thiscollaboration. This will probably bereflected in the physical environments.The government emphasises the continuedimportance of utilising research andreinforcing Sweden’s international competitiveness.The Research Bill containsa number of stimulation measures to realisethis ambition. As regards premisesand property enterprise, this will meangreater interest in corporate expansionand a demand for premises adjacent tocampuses. Akademiska Hus has forseveral years worked with campus plansthat offer an opportunity for greatercoverage and diversity on the campuses.This presents the scope to broaden thetenant categories, thus reducing the levelof risk through overly high exposure tothe tenant segment. At the same time,the attractiveness of campuses is increasing.CAMPUS PLANNINGIn recent years, Akademiska Hus hasinvested in a highly focused way in developingnew and future-oriented campusplans in close collaboration with thecentres of education. Current campusplanning is not just about where thestreets will be built, where the utilitieswill be installed or where a building willbe constructed. It will also be about howthe activities in the area will be developedand how campuses should be developedas urban districts.The focal issues are how a campuscan contribute to attracting the bestresearchers and students to our centresof learning. Campus planning is aboutproviding premises for the work that isbeing conducted but also about howgreater diversity can be created and howuniversity and college campuses can beintegrated with the surrounding urbanareas. In the development of new campusplans, Aka demiska Hus collaborates notonly with the centres of education butalso with the municipal authorities andcity planning offices. The joint planningprocesses can bring new perspectives tothe development of the urban environmentssurrounding our universities andcolleges but also to the development ofthe towns and cities in which the universitiesand colleges are located. Discussingpremises for companies and enterpriseparks adjacent to campuses is an importantelement that will contribute to increasingthe attractiveness of both universitycampuses and research parks.Other key elements are the availabilityof housing and the potential to travel toand from a campus by public transport.Campus plans are developed at leastevery fifth year to keep the commondialogue regarding our campuses alive.In 2012, new complete campus plans forLuleå, Albano in Stockholm, Lund andAlnarp were completed. In addition, workon the detailed planning level and themore advanced general planning levelwas carried out in Umeå, Uppsala, Stockholm,Linköping, Gothenburg and Lund.Akademiska Hus is also a partner in generaldiscussions regarding communitydevelopment. Hagastaden in Stockholm,Linköpingsbo 2016 and the developmentof the Johanneberg Science Park andMedicinareberget in Gothenburg aregood examples of this.

10AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: HIGHER EDUCATION AND RESEARCHCENTRES OF EDUCATION – FINANCESThe centres of education have expandedconsiderably in recent years. Although itis primarily research and doctoral programmesthat have received increasedfunding, undergraduate programmeshave also increased thanks to the majorinflux of students. As regards undergraduateprogrammes, costs have alsoincreased significantly although this canbe viewed in part as a ‘saving’ as the collegesand universities have brought forwardcourse programmes that exceeded thefunding. The aim is that the excess provisionof education could justify them continuingto receive full funding the day thestudent influx drops. At the end of 2011, excesseducation provision at the colleges anduniversities was worth SEK 635 million,with a further increase during 2012.The cost of premises in 2011 was onaverage 13 per cent, which is low whenviewed in relation to the fact that theMinistry of Education in its follow-up ofcosts at the different colleges and universitiesstates that the cost of premisesshould preferably not exceed 17 per cent.The financial situation for the country’scentres of education is generally goodalthough over time centres that have limitedresearch and a high proportion ofundergraduate programmes based oninternational students could feel the consequencesonce the full effects of the introductionof fees filter through.5 10 15 20 25 30 35emiska Hus Konkurrenter 17 % lokalkostnadsandelBlekinge Institute of TechnologyUniversity of Dance and CircusSwedish National Defence CollegeGothenburg UniversityDalarna UniversityGävle UniversityJönköping UniversitySkövde UniversityGotland UniversityKarlstad UniversityUniversity College of Arts, Crafts and DesignRoyal College of Music, StockholmLinköping UniversityLinné UniversityLund UniversityMid Sweden UniversityThe Swedish University of Agricultural SciencesUniversity College of Opera StockholmStockholm Academy of Dramatic ArtsUppsala UniversityÖrebro UniversityChalmers University of TechnologyStockholm School of EconomicsSwedish School of Sport and Health SciencesHalmstad UniversityBorås UniversityKristianstad UniversityWest Sweden UniversityKarolinska InstituteRoyal Institute of ArtRoyal Institute of TechnologyLuleå University of TechnologyMalmö UniversityMälardalen UniversityStockholm UniversitySödertörn UniversityUmeå UniversityPROPORTION OF COST OF PREMISES 2011, %centre of education0 5 10 15 20 25 30 35Centres of education at which Akademiska Hus operates Other property owners only13 % average cost of premisesSource: Swedish National Agency for Higher EducationREVENUE FOR ALL CENTRES OF EDUCATIONSEK bnBREAKDOWN OF REVENUE FOR ALL CENTRESOF EDUCATION 2011REVENUE FOR ALL CENTRES OF EDUCATION2011, TOTAL SEK 59.0 BILLION6050403020100Education2004200520062007Research2008200920102011TOTAL STUDY TIME IN TERMS OF DEGREESCOMPLETEDnumber of degreesSource: Swedish National Agency forHigher EducationSEK 33 billion(56%)Revenue for educationRevenue for researchSEK 26 billion(44%)Source: Swedish national Agency for Higher EducationSEK 19.1 billion(32%)Intäkter till forskningIntäkter till utbildningSEK 39.9 billion(68%)Revenue for all centres of education in thecity regions of Stockholm, Gothenburg andmalmöRevenue for all centres of education outsidethe city regions of Stockholm, Gothenburg andmalmöSource: Swedish national Agency for Higher EducationUtanför storstadsI storstadsregione80,00070,00060,00050,00040,00030,00020,00010,00002001/20022003/20042005/20062007/20082009/20102011/2012Five years or more4–4.5 years3–3.5 yearsless than three yearsAcademicyear

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: HIGHER EDUCATION AND RESEARCH 11School of Business, Economics and Law,GothenburgCONCLUSIONA downturn in education provision andrelated floor space requirements at universitiesand colleges has yet to emerge.Although the number of applications willprobably fall in the future, our assessmentis that the need for premises willremain relatively stable.Through the new Research Bill, thehigher education sector will also receivea major increase in funding in the future.At the larger universities, this couldbalance out a possible downturn incourse programmes but at the smalleruniversities and colleges the researchgrants will not compensate for a possiblefall in the number of students and thereis greater uncertainty with regard to theneed for premises in the long term.Akademiska Hus can counteract invarious ways any change in the demandfor premises, including broadening theuse of the campuses. A focus on premisesthat are more general makes operationsless vulnerable and at the same timeensures campuses to be more attractive,which is something that tenants in thehigher education sector are anxious toachieve.

Blåsenhus, Uppsala

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: RENTAL AND PROPERTY MARKET13Rental and property marketIncreased risk aversion in the property marketDuring 2012, no major changes were noted regarding rent levels.The Swedish economy during 2012revealed unexpected resistance in asituation characterised by financialconcern and national debt crises. Duringthe autumn, the slowdown in the Swedisheconomy resulted in initiatives such asreduced corporation tax, infrastructureprojects and research to reinforce Sweden’sgrowth potential.PROPERTY MARKETWith increasing uncertainty and risingrisk premiums, capital was being attractedto safer investments.In the wake of a financial crisis andgovernment debt crises, extremely lowinterest rates have become the norm andinvestors are finding it difficult to sourcea sufficiently good return on their investments.We therefore saw continued largescaleinterest in the property segment in2012. Properties are an important typeof asset in investment portfolios as theyrepresent diversification and the value inreal terms can be expected to be retainedas the cash flow is largely protectedagainst inflation. In the property segment,capital has been attracted to propertycategories that offer safe, stable cashflows and thus low risk. This mainlytakes the form of residential propertiesin growth areas and properties with longleases, preferably with public sector tenants.During the year, restrictions and caution,particular within the bankingsector, have resulted in less accessiblefinancing, which has been the major limitationon the potential to invest in property.Increasing demands for equity contributionsare being made and terms andconditions for key financial figures havebeen tightened. Increasing caution in thebanking sector has meant that financingthrough the corporate bond market hasincreased. Property companies in particularhave turned their attention to thissource of financing. During the autumn,however, there have been signs that propertyinvestors are taking a more positiveview of the situation on the financingmarket. Even foreign banks are showinggreater interest in the Swedish propertymarket.There has been an increased marketfocus on community properties. TheseBiomedical Centre, Lund Universityare properties with stable cash flows anda low rent risk, i.e. long leases and tenantswith a good credit rating, which ischaracteristic of Akademiska Hus, andthese are particularly in demand at present.RENTAL MARKETWith the slowdown in growth, demandon the rental market has been curbed.Worldwide concern has also led to morecompanies reviewing their need forpremises. On the non-residential rentalmarket, this has been reflected in thecontinued stable demand for modern,An increased focus on communityproperties is nowemerging. Properties withstable cash flows and lowrent risk, i.e. long leases andtenants with a good credit rating,are characteristic of AkademiskaHus and are particularly in demandat present.

14AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: RENTAL AND PROPERTY MARKETflexible, environmentally correct premises.At the same time, signs have emergedof a rise in vacant space in older propertyholdings. Modern, efficient premises, despitea higher rent per square metre, normallymean reduced costs per workplace.Many companies are improving theircost efficiency by moving to more modernpremises. There is keen competition forlarge establishments, particularly in conjunctionwith project rentals in newlyconstructed buildings.No major changes in rent levels werenoted in 2012. During the autumn, expectationsregarding a rise in rentswaned in line with the slowdown ingrowth and according to the SwedishProperty Research Forum (SEPREF) themajority of players on the market nowexpect unchanged or falling rent levels.On the city markets, a fall in growth inthe service sector could have an impacton both vacant space as well as rents,where we will probably see an increase invacant space over the next year anddownward pressure on rents. High-qualitypremises are expected to retain theirrent levels and are easier to let.CONSTRUCTION MARKETAND PROJECTSThe current slowdown in the Swedisheconomy means that the constructionindustry continues to remain in standbymode. During the year, the constructionsector deteriorated considerably andaccording to the business barometer it isnow on a low level. Order flows, constructionand employment at constructioncompanies have fallen and this trend isexpected to continue. A fall is also expectedin tender prices. At present, one intwo companies feel that they have an orderstock that is too low. For AkademiskaHus, with an extensive project portfolio,the current state of the economy willprobably mean that procurement ofbuilding contracts can take place atadvantageous prices.MARKET POSITIONAkademiska Hus is the second-largestproperty company in Sweden. The contractportfolio structure, with long leasesand a good spread of lease expiry dates,brings stability. The focus on premisesfor higher education and research offersconditions for continued operationalstability. Good demand in the long termand long leases with stable customers ina widely diversified lease portfolio,coupled with good cost control, arecharacteristic features of the Company’score operations.The finance crisis of 2008 did notaffect Akademiska Hus customers to anygreat extent. The number of universityand college applicants depends largely onthe number of young people in the agerange 19–23 years and the situation onthe labour market. The turnaround inthe economy that commenced in 2011could increase pressure on places forhigher education and research. Pressureon places usually increases when thelabour market weakens. Even if the propertymarket were to experience negativegrowth in the future due to the economy,Akademiska Hus still has high-qualityproperties with strong, stable cash flows.Our public sector tenants also have astrong payment capacity and a long-termapproach, which it is felt will help withstandthe current trend in the economy.We can see a continued increase indemand for the development of new andexisting knowledge environments and asa result, the project portfolio is largerthan ever. The project portfolio during2012 has grown even further and nowstands at SEK 26 billion. The investmentsare concentrated in Uppsala andStockholm. Future investments in educationand research will result in growthfor Akademiska Hus in the coming years.During the past 10 years, there hasbeen increased interest in investing incommunity properties and quality buildingswith long leases. Coupled with thepressure of applications for higher education,this normally increases when theeconomy is weak and this is positive forthe Akademiska Hus property portfolio.The difficulty experienced in recentyears in obtaining financing and the negativetrend in the economy are counteractiveand prevent even lower yield requirements.The present low yieldrequirements probably mean a higherrisk premium when the risk-free rate ofinterest fell during the year and the yieldrequirement remained unchanged.DirektavkastninVakansvärde, Vaka %YIELD REQUIREMENT TREND 2002–2011%SWEDEN’S LARGEST PROPERTY COMPANIES 2012SEK m %108108120 000100 00080 000120,000100,00080,0001210812108HyresintäFastighet6660 00060,000664440 00020 00040,00020,00042422 22002 2003200220042003200520042006200520072006200820072009200820102009201120102011Housing Bostäder Stores Butiker Offices KontorIndustry Industri Education/schools Utbildning/skola0Vasakronan0AkademiskaVasakronanHusFabegeAkademiska HusKungsledenFabegeKungsledenCastellumHufvudstadenCastellumHufvudstadenWihlborgs0Wihlborgs0Source: NAI SvefaFastighetsvärde, Property Mkr value, SEK Hyresintäkt, m Mkr Rental income, SEK mVakansvärde, Value % of vacant space, Direktavkastning, % Yield, %%VasakronanAkademiska HusFabegeKungsledenCastellumHufvudstadenWihlborgs

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONS15Southern RegionLund – an attractive city for high-tech companiesIn the Southern Region, holdings are mainly in Lund, which is largely characterised by its university. In Malmö, there is theFaculty of Odontology as well as current new construction on the Niagara block, which will house the new administration andteaching building. There are also substantial local holdings in Alnarp and Kristianstad. In Kalmar, Akademiska Hus disposedof two properties during the year.The Öresund region is one of themost dynamic regions in NorthernEurope and now has a total of 3.8million inhabitants. The labour marketin Lund is strong with a level of unemploymentthat is considerably lower thanthe national average. However, the recessionhas also hit Lund with widespreadredundancies as a result. Lund Universityand its co-operation with successfulresearch and development companies haspositioned Lund as an attractive city amonghigh-tech companies. The EuropeanSpallation Source (ESS) and Max IV willbe of major significance to the future developmentand growth of the city.Malmö has evolved from being an industrialcity to a knowledge city. Kalmarand Kristianstad are two strong commercialtowns with stable property markets.In Kalmar, parts of the propertyholdings were sold during the year.YIELD REQUIREMENTS 2003–2012%1086420LundLomma Kalmar KristianstadMalmöOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusThe Swedish University of AgriculturalSciences carries on operations at theFaculty of Landscape Planning, Horticultureand Agricultural Science in Alnarp.PROPERTY MARKETThe property market in the region becamemore cautious towards the end ofthe year. In Lund, transaction activity isby tradition low as established playersadopt a very long-term perspective.Modern, flexible, environmentally correctoffice premises in locations close to communicationsare withstanding the recessionand continue to enjoy a relativelygood level of demand. Market rents foroffice premises in prime locations inMalmö have reported a slight increasealthough in general rents in the region’ssub-markets have remained stable. InLund, however, certain pressure on therental market is being felt due to thelarge-scale vacation of premises and futurevacant space. The newly establishedMedicon Village has also resulted in asubstantial addition of premises close tothe campus.CUSTOMERSThe region, with Malmö University, LundUniversity, the Swedish University ofAgricultural Sciences in Alnarp andKristianstad University, are part of oneof the foremost university regions inEurope. Lund University is one of theleading centres of education in Swedenand is Akademiska Hus’s largest customer.University Library, LundIn recent years, the University’s premiseshave undergone extensive restructuringand renewal. Lund University dates backto 1666 and has been ranked among thetop 100 universities in the world for severalyears.RENT LEVELSSEK/m 21,6001,4001,2001,0008006004002000Lund Lomma Kalmar KristianstadMalmöMaximum/minimum rent, general premises,B-locationLARGER URBAN CENTRESIN THE REGION Lund Lomma Kalmar Kristianstad MalmöPopulation, december 31, 2012 112,676 22,219 63,504 80,332 306,738number of full-time students 2011 28,464 886 4,726 5,917 12,678maximum rent, general premises,B-locationminimum rent, general premises,B-location1,450 850 900 1,000 1,500750 600 600 650 1,100Rent trendlevel of vacant space, % 6–14 5–10 6–10 7–12 8–12Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.

16AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONSWestern RegionGothenburg attracts a highly educated workforceIn the Western Region, Akademiska Hus conducts operations in Gothenburg, Borås, Karlstad and Skövde. Inaddition, there is the Sven Lovén Centre for Marine Sciences in Bohuslän, the Lovén Centre on Tjärnö and theLovén Centre in Kristineberg.Artisten, Gothenburg UniversityGothenburg is a city with a relativelyhigh proportion of knowledgeintensive,high-tech companies.The city enjoys the best logistics locationin Sweden and the port is the largestexport-import port in the Nordic region.Karlstad is a regional centre in Värmland,with a high commercial index and expertisefocused on pulp, paper and packagings.Borås is nowadays a centre fortextile design, development and trade.PROPERTY MARKETThe property market for non-residentialpremises in central Gothenburg is dominatedby the large property companies.In central Gothenburg, holdings areprimarily commercial properties andduring the past year they have been concentratedeven further among a smallnumber of companies. The transactionmarket in 2012 included a number ofmajor deals, the largest of which was thepurchase made by Vasakronan from Diligentia.The rental market for offices hasbeen positive during the year in terms ofthe letting level and growth in rents. Atrend on the Gothenburg market is for anincreasing number of companies to relocateto more modern premises wherefloor space can be used more efficiently.In Borås, Karlstad and Skövde, the holdingsare dominated by local and regionalproperty companies.CUSTOMERSThe University of Gothenburg, with38,000 students and almost 6,000 employees,is one of the largest universitiesin Northern Europe. It is also one of themost popular universities in Sweden withmost applications for programmes andcourses. Research and development areconducted at around 40 departmentswithin the majority of scientific disci-plines, making it one of the most diversecentres of education in the country. Collaborationbetween the University andChalmers University of Technology,Sahlgrenska University Hospital and therest of the community and industry hasbeen gradually deepened in recent years,as have international contacts and collaborationprojects. Chalmers Universityof Technology continues to be at the forefrontin research.Karlstad University has been praised bythe Swedish Agency for Higher Educationfor its good co-operation with working life.An advantage for Karlstad University isthat it has good housing availability for students.The number of applications to BoråsUniversity in autumn 2012 was among thehighest in the country. Skövde Universityhas developed in recent years and offers 43first-cycle degree programmes and tensecond-cycle programmes.YIELD REQUIREMENTS 2003–2012%1086420Gothenburg BoråsSkövdeKarlstadOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusLARGER URBAN CENTRES IN THE REGION Gothenburg Borås Skövde KarlstadPopulation, december 31, 2012 521,767 104,606 52,174 86,834number of full-time students 2011 36,124 6,367 4,472 8,940maximum rent, general premises, B-location 1,600 900 950 1,200minimum rent, general premises, B-location 1,000 600 600 700Rent trendlevel of vacant space, % 6–12 4–12 4–8 6–10Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.RENT LEVELSSEK/m 21,6001,4001,2001,0008006004002000Gothenburg BoråsSkövdeKarlstadMaximum/minimum rent, general premises,B-location

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONS17Eastern RegionThree strong campuses in the regionThe twin towns of Linköping and Norrköping make up the fourth largest city region andÖrebro is the seventh largest municipality in Sweden.The development of Linköping isvery much dependent on collaborationbetween the University andMjärdevi Science Park. Norrköping wasmainly a traditional industrial city. Industryin Norrköping has over the yearsbecome increasingly broader and moredifferentiated and there are now over9,000 companies.In Örebro, industry is dominated by alarge number of small and medium-sizedenterprises. Örebro’s good communicationlocation has meant that the logisticsindustry will assume even greater significancein the future growth and developmentof the town.YIELD REQUIREMENTS 2003–2012%1086420LinköpingÖrebroNorrköpingOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusPROPERTY MARKETDuring 2012, Linköping had a strong officemarket with mainly unchanged toslightly rising rents and little vacantspace. The yield during the year for modernpremises in prime retailing and commerciallocations with efficient use of floorspace has been down to 5.5 per cent.The turnover of commercial propertiesin Norrköping continues to be low.There is, however, a certain degree ofover-establishment in Norrköping’scommercial areas, which has resulted invacant space.Örebro also has a strong office marketand several new construction projectsare approaching completion, which willaffect the availability of office premisesand will result in a more active officemarket.Ostlänken, the express rail link betweenLinköping and Stockholm, willpromote commuting and shorten thetravelling time, two factors that are expectedto have a very positive impact onthe regional property market. Ostlänkenis scheduled for completion by 2028 atthe latest. Along with this investment,major municipal investments in travelcentres are expected alongside densificationand development of new city areas inboth Linköping and Norrköping.CUSTOMERSLinköping University has operations inboth Linköping and Norrköping and has27,300 active students. The number of applicantsto the University continues to behigh. Linköping University is a welldevelopedprogramme university withadvanced professional education programmesthat make up the main body ofKey Building, Linköping Universitythe education programme. The Universityis attractive and students in Linköping areamong those who establish themselvesmost rapidly on the labour market andhave the highest average salary one yearafter graduating.Örebro University is a relatively younguniversity and its competitiveness lies inits cohesive campus. Many of the educationpremises are new and of a high standard.The housing situation is also good.RENT LEVELSLARGER URBAN CENTRES IN THE REGION Linköping Örebro NorrköpingSEK/m 21,4001,2001,0008006004002000LinköpingÖrebroNorrköpingMaximum/minimum rent, general premises,B-locationPopulation, december 31, 2012 148,180 138,484 131,804number of full-time students 2011 14,557 10,224 3,559maximum rent, general premises, B-location 1,300 1,200 1,100minimum rent, general premises, B-location 800 700 700Rent trendlevel of vacant space, % 3–7 4–10 5–10Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.

18AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONSUppsala RegionUppsala – a leading medical centreIn the region, Akademiska Hus has operations in central Uppsala for Uppsala University, in Ultuna for the SwedishUniversity of Agricultural Sciences and in Gävle for Gävle University. Uppsala, Sweden’s fourth largest city, is growingsignificantly. The population is over 200,000 and unemployment continues to be the lowest in the country.BioCentre, Swedish University of AgriculturalSciences, UppsalaExtensive research is conducted inUppsala in a wide range of disciplinesand with a particular focus on medicine.An important reason for companiesto establish in Uppsala is the potentialfor close collaboration with the universities.Gävle does not have the same rate ofgrowth on the labour market and unemploymentis higher than the nationalaverage.PROPERTY MARKETTransaction volumes in Uppsala fell during2012. In those transactions that werecompleted, it is local bodies and commercialproperty developers that have beenactive. On the office rental market, rentand vacant space levels remain relativelystable and, by tradition, they have beenrelatively low regardless of the state ofthe economy.In the Ultuna area of Uppsala, a cohesive,more vibrant campus is emerging.Parts of the holdings in Ultuna are inpoor condition and are due to be demolished.Other buildings that are in goodcondition have an established rent levelof SEK 1,000–1,300 per square metre.The rental market and level of vacantspace in Gävle are stable even if the closureof Ericsson has meant that large volumesof floor space have come onto themarket in stages.CUSTOMERSUppsala University is one of the highestranked universities in Northern Europe.The University is the oldest in the NordicRegion – founded in 1477 – and offers avibrant cultural environment with a veryrich and varied student life. The Universityis in a strong position, it has improvedits efficiency in the use of premisesand it has worked on renewal and densification,both in individual buildings and inwhole areas of the campus. The growth ofSweden as a nation of knowledge is particularlyobvious in Uppsala. In recentyears, Akademiska Hus has completednew premises for teacher training, pedagogicsand psychology on the Blåsenhusblock. Together with the Swedish Universityof Agricultural Sciences, AkademiskaHus is working on a total transformationof the Ultuna Campus. The campus willbe considerably more cohesive and efficientin terms of use of floor space. Currentinvestments in Ultuna total almostSEK 3.5 billion.Gävle University has adapted its programmesmore quickly than the traditionaluniversities and colleges to market demandsfor new ways of teaching, includingvarious forms of distance learning.YIELD REQUIREMENTS 2003–2012%1086420UppsalaGävleOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusLARGER URBAN CENTRES IN THE REGION Uppsala GävlePopulation, december 31, 2012 201,882 96,034number of full-time students 2011 25,565 6,803maximum rent, general premises, B-location 1,700 1,250minimum rent, general premises, B-location 900 800Rent trendlevel of vacant space, % 5–10 5–10Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.RENT LEVELSSEK/m 21,8001,6001,4001,2001,0008006004002000UppsalaGävleMaximum/minimum rent, general premises,B-location

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONS19Stockholm RegionStockholm – the university capital cityThe Stockholm region, which apart from the different campuses in Stockholm also includes significant holdings inSolna and Huddinge, is Akademiska Hus’s largest market in terms of both rental revenue and rentable floor space.Greater Stockholm has experiencedpowerful growth in populationover a long period with a strongpositive net influx. The Stockholm labourmarket is strong and highly diversified.Unemployment is increasing although ata slower rate than the national averageand from lower levels. Part of the attractionof Stockholm can be attributed tothe education, research and developmentthat is taking place at the major centresof education although the fact that it isthe country’s capital is also an importantfactor.The plans for the Albano area havenow been adopted by the City Council.The aim is to create an attractive educationand research environment with asocio-ecological urban design that formsa hub in the collaboration between theRoyal Institute of Technology, StockholmUniversity and the Karolinska Institutewith new department buildingsinterspersed with accommodation forstudents and researchers.YIELD REQUIREMENTS 2003–2012%1086420StockholmSolnaHuddingeOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusPROPERTY MARKETThe number of property transactions inStockholm fell during 2012. At the beginningof the year, the trend continuedwith rent increases and falling vacantspace in the inner city although the trendhas now turned. According to SwedishProperty Research Forum, no rent risesin the prime office segment are expected.This can be explained by the increasinglynegative economic climate and the factthat tenants have turned their sights to themunicipal area surrounding Stockholm forrelocation. Solna and Sundbyberg havetaken a major step forward with regard tothe range of commercial properties.CUSTOMERSAkademiska Hus’s biggest customers inStockholm are Stockholm University, theRoyal Institute of Technology and theKarolinska Institute. International competitionhas meant that the three largecentres of education in the Stockholmregion have forged closer ties. StockholmUniversity and the Karolinska Instituteare ranked in many lists among the 100best centres of education in the world.Stockholm University is the largest universityin Sweden and one of the mostattractive. The Royal Institute of Technologyenjoys an excellent reputation as auniversity of technology. It covers a widerange of disciplines and is responsible forone-third of Sweden’s capacity in termsof engineering research and the trainingof engineers at university level. The KarolinskaInstitute is today one of the mostimportant medical universities in Europeand is Sweden’s largest centre for medicaleducation and research.Karolinska Institute, SolnaRENT LEVELSLARGER URBAN CENTRES IN THE REGION Stockholm Solna HuddingeSEK/m 23,0002,5002,0001,5001,0005000StockholmSolnaHuddingeMaximum/minimum rent, general premises,B-locationPopulation, december 31, 2012 877,543 71,018 100,686number of full-time students 2011 50,839 5,798 8,272maximum rent, general premises, B-location 3,000 2,100 1,300minimum rent, general premises, B-location 1,900 1,200 800Rent trendlevel of vacant space, % 5–10 8–14 8–14Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.

20AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONSNorthern RegionUmeå – European Capital of Culture 2014In the Northern Region, Akademiska Hus properties are mainly located in the two strong Norrland cities ofUmeå and Luleå. Umeå is a distinctive university city and will be the European Capital of Culture in 2014. Luleåhas Luleå University of Technology. In Sundsvall, the Åkroken campus received the Prix Rothier in 2008 for thebest campus.Lindellhallen, Umeå CampusUmeå has two universities, a richcultural life and a positive, longtermgrowth in population. Luleåis dominated by heavy industry and thepublic sector. A positive factor for LuleåUniversity of Technology is the existenceof two strong, successful companies –LKAB and SSAB.In terms of transport, Umeå is movingcloser to southern Sweden and Europe.The Bothnia rail link will eventuallyhalve the travelling time from Umeå toStockholm. In addition, Air Sweden isbuilding up a regular air service network,with Umeå as a base, with direct flightsto Europe as well as a network of routesin Norrland.PROPERTY MARKETTransaction activity in the region is bytradition low, particularly with regard tocommercial properties. Market rents forprime location offices where efficient usecan be made of the floor space increasedslightly during 2012 and demand is consideredto be good on the majority ofsub-markets. Otherwise, rents andvacant space on the region’s submarketshave remained stable.In Umeå, IKEA and Ikano will establisha department store and shoppingcentre at the southern entrance to thecity. This establishment will probablyhave a positive impact on the local propertymarket. In Luleå, construction ofthe Hunden block will commence with29,000 m ² , mainly comprising a hotel althoughthere will also be housing, retailingspace and offices.CUSTOMERSUmeå University is one of Sweden’s largestcentres of education with over 36,000students and almost 4,300 employees.The University has a very wide range ofcourse programmes in the majority ofdisciplines. Housing for students is aproblem in Umeå. During 2012, AkademiskaHus allocated land for the constructionof 200 new residential units on theUmeå Campus.Luleå University of Technology celebratedits 40th anniversary in 2011. Positivenews for the University is the increasein interest in engineeringprogrammes. Last year, the number ofnewly enrolled students on undergraduateengineering programmes was thehighest for ten years.In Sundsvall, Mid Sweden Universityand the Åkroken Campus are key factorsin the development of the town. Sundsvallhas been voted on several occasionsthe most student-friendly municipalityin the country.YIELD REQUIREMENTS 2003–2012%1086420UmeåLuleåSundsvallKirunaOffices in B-locations, maximum/minimummarket yield requirementsYield requirements 2012, Akademiska HusLARGER URBAN CENTRES IN THE REGION Umeå Luleå Sundsvall KirunaPopulation, december 31, 2012 116,891 74,770 96,586 23,023number of full-time students 2011 17,890 7,173 3,034 0maximum rent, general premises, B-location 1,150 1,350 1,000 900minimum rent, general premises, B-location 850 800 700 600Rent trendlevel of vacant space, % 4–8 5–9 6–10 5–10Vacant space trendSource: Swedish national Agency for Higher Education, Statistics Sweden, nAI Svefa’s analysis report 2012 etc.RENT LEVELSSEK/m 21,4001,2001,0008006004002000UmeåLuleåSundsvallKirunaMaximum/minimum rent, general premises,B-location

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: REGIONAL OVERVIEW21Regional overviewINCOME STATEMENTS, (SEK M) South West EastUppsalaStockholmOtherNorth operations 2) 2012 2011 ChangeRevenue 802 809 544 945 1,885 526 5,511 5,378 133costs 1) -339 −282 -164 -344 -597 -184 -16 -1,926 -1,990 64net operating income 463 528 380 601 1,287 342 -16 3,585 3,389 197change in value -8 91 -35 -354 39 -24 -291 361 -652Operating profit 449 612 342 240 1,316 314 -47 3,227 3,704 -477RESULT FOR THE YEAR 399 488 274 282 1,194 263 246 3,147 2,394 753Yield 5.8% 7.6% 8.6% 7.1% 6.5% 8.0% 6.9% 6.7% 0.2%net operating income level 48% 62% 71% 62% 69% 62% 63% 61% 2%BALANCE SHEETS, (SEK M)Assets (Total assets) 6,663 7,276 4,584 10,209 23,113 4,186 5,601 61,632 61,073 559liabilities 1,150 1,178 610 1,425 3,430 700 24,712 33,205 34,549 1,344KEY DATAAssessed fair value, SEK m 6,620 6,975 4,557 10,094 22,335 4,096 54,677 52,071 2,606Assessed fair value, SEK/m 2 12,786 13,468 12,187 14,235 22,206 10,500 15,504 15,220 284Rentable floor space, m 2 486,999 498,277 353,171 575,192 915,384 378,505 3,207,528 3,211,776 -4,248of which teaching premises 50% 66% 45% 31% 43% 58% 47% 48% -1%of which laboratory premises 34% 25% 36% 46% 34% 29% 34% 34% 0%Vacant space, area 4.1% 1.8% 0.8% 5.2% 2.2% 0.2% 2.6% 2.6% 0.0%net investment, SEK m 108 111 96 988 1,403 63 2 2,771 2,150 6211) Of which Operation – media provisionOperation – monitoring and servicemaintenanceProperty administration95 81 66 132 197 54 -28 598 618 1943 41 20 50 88 29 271 267 -4139 69 44 104 149 59 564 603 3936 41 24 42 71 24 44 281 268 -132)The large items under Other operations are essentially attributable to the allocation of Group financing.CUSTOMER CATEGORIES,DECEMBER 31, 2012Totalrented floorspace, m 2Proportion,%Totalrent,SEK mProportion,%universities and colleges 2,575,698 80 4,423 84Other government authorities 99,955 3 149 3chalmers universityof Technology125,698 4 167 3municipal authorities 24,180 1 35 1Institutes and foundations 31,309 1 41 1companies and others 268,097 8 502 10Vacant space 82,591 3 -52 -1TOTAL 3,207,528 100 5,265 100TEN LARGEST CUSTOMERS,DECEMBER 31, 2012Total rentedfloor space,m 2Proportion,%Totalrent,SEK mProportion,%lund university 332,465 10 592 11uppsala university 275,434 9 532 10Stockholm university 265,481 8 480 9Swedish university ofAgricultural Sciences205,096 6 286 5linköping university 202,720 6 326 6Gothenburg university 201,206 6 324 6Royal Institute of Technology 196,529 6 374 7umeå university 193,130 6 255 5Karolinska Institute 192,329 6 472 9chalmersfastigheter AB 125,698 4 167 3TOTAL 2,190,088 68 3,807 72REGIONAL OVERVIEWThe market for Akademiska Hus is thecountry’s 52 centres of education, dividedamong 25 university and college locations.There are 14 state-owned universities. Inaddition, there is Chalmers University ofTechnology and Stockholm School ofEconomics. Akademiska Hus is by far thelargest property owner specialising inSwedish centres of education, with amarket share of 63 per cent of the totalfloor space. Centres of education thathave the government as principal represent92 per cent of the market. AkademiskaHus’s market presence is strongerin the university towns and cities. Wehave operations in all university townsand cities except for Östersund andHärnösand (Mid Sweden University) andVäxjö (Linné University). AkademiskaHus is also represented in five of thelarger university college towns and cities.Akademiska Hus operations are dividedinto six regions. An overview of themost important figures for the differentregions and for the whole of AkademiskaHus can be seen in the tables above.

22AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: FIVE-YEAR SUMMARYFIVE-YEAR SUMMARY 2008–2012 Graph 2012 2011 2010 2009 2008INCOME STATEMENTS, (SEK M)Property management income 5,511 5,378 5,176 5,115 4,957Operating costs -870 -885 -939 -866 -864maintenance costs -564 -603 -657 -657 -585Property administration -281 -268 -249 -252 -258net operating income 3,585 3,389 3,134 3,149 3,053change in value, properties -291 361 87 -1,208 -2,192central administration costs -66 -45 -37 -35 -40Profit before financial items 1 3,228 3,704 3,184 1,906 821net financial income/expense -682 -452 -263 -576 -589Profit before tax 1 2,546 3,252 2,921 1,330 232Profit for the year 3,147 2,394 2,124 972 749BALANCE SHEETS, SEK MAssessed fair value, properties 2 54,677 52,071 49,497 47,723 47,524Other assets 6,955 9,002 4,029 4,064 5,139Equity 28,427 26,521 25,406 24,477 24,462Interest-bearing liabilities 24,212 24,693 18,973 18,782 19,414Other liabilities and provisions 8,993 9,859 9,147 8,528 8,787CASH FLOW, SEK Mcash flow from current operations 2,126 2,017 2,444 1,761 1,981cash flow from investments 3 -2,388 -1,898 -1,459 -1,123 290cash flow before financing -262 119 985 638 2,271cash flow from financing -1,081 3,779 -1,175 -771 -2,100cash flow for the year 3 -1,343 3,898 -190 -133 171PROPERTY-RELATED KEY FIGURESTotal yield, properties, % 6.8 7.8 7.0 4.3 1.9of which direct yield, % 1) 7.1 6.9 6.7 6.8 6.4of which change in value, % -0.3 0.9 0.3 -2.5 -4.5Rental revenue, SEK/m² 1,644 1,599 1,557 1,543 1,500Operating costs, SEK/m² 272 277 293 271 270maintenance costs, SEK/m² (including tenant adaptations) 176 189 205 206 183net operating income in relation to administration income, % 65 63 61 62 62net operating income, SEK/m² 1,120 1,059 979 986 955level of vacant space, area, % 2.6 2.6 3.5 3.8 3.7level of vacant space, rent, % 1.0 1.2 2.0 1.9 1.5Assessed fair value, properties, SEK/m² 2) 2 15,504 15,220 14,645 13,896 14,207FINANCIAL KEY FIGURESReturn on equity after standard tax, % 3) 4 6.8 9.2 8.6 4.0 0.7Return on total assets, % 5.3 6.5 6.5 4.4 2.1Interest-bearing net loan liability, SEK m 18,528 16,778 15,726 15,531 15,090Equity ratio, % 5 46.1 43.4 47.5 47.3 46.5Interest coverage ratio, % 6 672 716 741 841 347Interest cost in relation to average capitalin interest-bearing liabilities, %4.2 3.0 1.8 3.6 3.5loan-to-value ratio, % 33.9 32.2 31.8 32.5 32.6Internal financing level, % 6 84 112 151 165 222dividend, SEK m 1,355 4) 1,245 1,207 1,219 978PERSONNELAverage number of employees (man-years) 403 396 401 399 399Satisfied Employee Index (nmI) 69 70 67 70 701)Excluding properties under construction.2)Excluding the value of properties under construction and expansion reserves.3)The owner’s yield requirement is that the return on average equity should be equivalent to the five-year government bond interest rate plus 4.0 percentage points viewed overa business cycle. In 2012, the average five-year government bond interest rate was 1.1 per cent.4)The Board of directors reached a decision on the proposed dividend at its meeting on march 14, 2013.

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: FIVE-YEAR SUMMARY23Five-year summary1. PROFITSEK m3. INVESTMENTS AND CASH FLOWSEK m5. EQUITY RATIO%5,0004,0003,0002,0001,0000200820092010201120124,0003,0002,0001,0000-1,000-2,000-3,000200820092010201120125040302010020082009201020112012Profit before financial itemsProfit before taxCash flow from investmentsCash flow for the yearSEK m SEK/m 2 %Räntetäckningsgrad, %% %6. INTEREST COVERAGE RATIO2. FAIR VALUE, PROPERTIES4. RETURN ON EQUITYAND LOAN-TO-VALUE RATIO60,00018,000151,00025050,00040,00030,00020,00010,00015,0001212,0009,0006,0003,000963002008 2009 2010 20110201202007 2008 2008 2009 2009 2010 2010 2011 2011 20122008 2009 2010 2011Assessed fair value, properties, SEK/m 2 Average return target over five yearsLoan-to-value ratio, %Assessed fair value, propertiesAverage return on equity over five yearsInterest coverage ratio, %8006004002002012200150100500COMMENTS1. ProfitThere was growth in property managementwith a stable profit. Net operatingprofit amounted to SEK 3,585 million(3,389). The improvement can be attributedto higher rent revenue and loweroperating and maintenance costs. Theprofit before tax was SEK 2,546 million(3,252). The fall in profit can be explainedby a negative effect on the changein value of properties totalling SEK -291million (361) and net financial income/expense of SEK -682 million (-452). Theprofit before tax, but excluding thechange in value of properties, wasSEK 2,837 million (2,891).The profit after tax was SEK 3,147million (2,394). The reduction in corporationtax to 22 per cent has had a positiveeffect on the tax expense for the yearof SEK 1,294 million.2. Fair value, propertiesThe fair value amounted to SEK 54,677million (52,071). The change in value wasnegative and amounted to SEK -291 million(361). No general change was made duringthe year in the yield requirement or costof capital in the internal property valuation.The assumed rate of inflation hasbeen changed from 2 per cent to 1 percent, which resulted in a change in thefair value of SEK -232 million. The marketfocus is now on properties with stablecash flows and low rental risk (long leases,tenants with a good credit rating).These factors are to the advantage ofAkademiska Hus and they did not deteriorateduring 2012.3. Investments and cash flowNet investments for 2012 totalled SEK2,771 million (2,150). Gross investment inproperties amounted to SEK 2,908 million(2,254). During the year, parts of theholdings in Kalmar were sold. The totalsales sum for the year was SEK 146 million(113). The profit before tax was SEK2,546 million (3,252) and adjustmentsfor items not included in the cash flow,referring to unrealised value of properties,totalled SEK 226 million (-520).Following a decrease in current receivablesand current liabilities, cash flowfrom current operations was SEK 2,126million (2,017). Investments had a negativeimpact on cash flow to the amount ofSEK 2,388 million (1,898). The dividendfor 2012 was SEK 1,245 million (1,207)and reduced the cash flow from financingoperations. The raising of interest-bearingloans changed the cash flow from financingoperations by SEK 164 million (4,986).Cash flow for the year amounted toSEK -1,343 million (3,898).4. Return on equityThe average yield on equity over fiveyears was 5.9 per cent (5.5) while thetarget was 6.4 per cent (7.0). The targetshould be viewed over a businesscycle.5. Equity ratioThe equity ratio was 46.1 per cent (43.4).The high equity ratio is particularly reassuringin times of uncertainty and financialconcern.6. Interest coverage ratio and loan-to-value ratioThe interest coverage ratio was 672 percent (716). The internal financing ratiowas 84 per cent for the year (112). Netfinancial income and expense for 2012amounted to SEK -682 million (-452), ofwhich SEK 201 million (-53) referred tothe change in the value of financial derivativesnot included in the computationbasis for the interest coverage ratio.

24AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: PROSPECTS AND FORECASTProspects and forecastInvestment in knowledge environmentsAt present, the estimated level of investment by Akademiska Hus stands at SEK 26 billion. This growthwill reinforce our market position in knowledge environments. With continued economies of scale and costefficiency, the Company’s capacity to handle the risks resulting from property holdings will improve aswell as its capacity to finance expansion in a well-balanced way.BioCentre, Swedish University of AgriculturalSciences, UppsalaDespite uncertainty in the Swedisheconomy and in particular theemployment trend, demand forfloor space continues to be relativelystable. The demand, however, is differentiatedand the focus is primarily on newor redeveloped and upgraded premises inprime locations. There is considerableinvestment interest in buildings thatoffer a low rental risk and in tenants witha strong payment capacity who haveadopted a long-term approach.The number of young people aged 19–23 years is currently higher than ever.During the coming 10-year period, however,the number of young people willfall. In the past, an important factor instudent influx into higher education hasbeen the trend on the labour market.With a weaker economic climate andunemployment set to remain high, manyyoung people will probably look to educationand research and to study for longerthan would otherwise have been the case.The increase that we have seen up tonow, with a continued rise in demand forthe development of new and existingknowledge environments, is no longertaking place everywhere. With the 2012Budget Bill, a change in grant allocationcommenced, which means that educationfunding will generally decrease. This isbalanced by continued investment inresearch. There is also reallocation throughquality premiums, which means that thelarge, leading centres of education with afocus on research will be benefited. Theextensive Akademiska Hus project portfoliois largely centred on Stockholm andUppsala and mainly comprises new constructionfor research-intensive operations.In the face of increasingly keen competitionfor students and researchers, it is importantto have attractive campuses. AkademiskaHus’s systematic work on campusplans is therefore a success factor. Togetherwith centres of education, students, municipalrepresentatives and others, our campusesare being developed to becomediverse and attractive and thus become anincreasingly valuable asset in the townsand cities in which they are located. InThe project portfolio totalsSEK 26 billion and comprisesmainly new construction forresearch-intensive operationsin Stockholm and uppsala.Future yield is estimated to beapproximately 7 per cent and returnon equity approximately 8 per cent.recent years, efforts have also been madeto facilitate the construction of studentaccommodation in those locations thathave the greatest shortage.EXTENSIVE PROJECT PORTFOLIOThe total Akademiska Hus project portfoliois approximately SEK 26 billion.Projects that have already been decidedtotal SEK 13.6 billion and these will becompleted through to 2015. At the turnof the year, SEK 4 billion of these investmentshad already been completed. Atthe planning stage, there are projectsworth a total of SEK 8.6 billion, whichare expected to be completed between2014 and 2018. There are also what aretermed concept projects, where implementationand the time horizon aresomewhat uncertain. These amount toalmost SEK 4 billion. The emphasis inthe project portfolio is on the Stockholmand Uppsala region. Following completionof the investment, the emphasis in theproperty holdings on the Stockholm and

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: PROSPECTS AND FORECAST25PROJECT PORTFOLIO (SEK M) South West East Uppsala Stockholm North Totaldecided projects 1,700 250 200 3,600 7,750 100 13,600Planned projects 250 250 50 2,150 5,700 200 8,600Decided and planned projects 1,950 500 250 5,750 13,450 300 22,200concept projects 1,200 1,300 550 100 500 250 3,900TOTAL PROJECT PORTFOLIO 3,150 1,800 800 5,850 13,950 550 26,100of which invested as of year-end -310 -170 -100 -1,500 -1,850 -70 -4,000REMAINING PROJECT PORTFOLIO 2,840 1,630 700 4,350 12,100 480 22,100of which decided and planned 1,640 330 150 4,250 11,600 230 18,200Uppsala region will be even greater. Atpresent, the two regions account for 59per cent of the total Akademiska Husproperty value. The building and civilengineering sector in this geographicalarea has in recent years encountered astrong level of demand as a number ofother major projects are in progress.According to economic indicators, thehigh level of activity in this sector is expectedto enter a calmer phase, no longera tangible lack of capacity. The large AkademiskaHus project portfolio makesconsiderable demands on co-ordinationwithin the Company’s organisation, bothin project operations and management.The project portfolio mainly comprisesnew construction of laboratory premisesand teaching and administration buildings.The laboratory premises that havebeen planned presuppose an initial leaseperiod of 20–25 years.At present, several projects are in progress,which individually are the largestprojects that Akademiska Hus has everimplemented. The five largest decidedand planned projects are:• Albano. New construction for StockholmUniversity, SEK 3,700 million.• Biomedicum. New construction for theKarolinska Institute in Solna, SEK3,450 million.• Veterinary and Domestic Animal Centre.New construction for the Swedish Universityof Agricultural Sciences inUppsala, SEK 1,463 million.• Ångström, Phase IV. New constructionfor Uppsala University, SEK 1,100 million.• Royal College of Music. New constructionfor the Royal College of Music inStockholm, SEK 834 million.The specific segment of the propertymarket in which Akademiska Hus operatesis characterised by minor variationsin rent levels and vacant space comparedto other properties intended for commercialpurposes. As the length of the lease ison average considerably longer than isgenerally the case, the changes will havean impact on the property market, with acertain time lapse and with a greaterspread. The project portfolio for highereducation is largely considered to compriseproperties with leases longer than10 years, which presupposes approval bythe government.EXTERNAL ANALYSIS ANDFUTURE CHALLENGESDuring 2012, a major external analysiscommenced. The results can be summarisedby saying that the future ought tobe marked by continued work on reinforcingrelationships with customers andother players in community development.A developed and more commonculture will result in greater efficiencyby Akademiska Hus developing proactivelyand with a firm focus on customersand results. Akademiska Hus’s areas ofexpertise, strengths and role on themarket should be developed and communicated.Development of the financial marketshas to date had limited impact on demandon the property market. The propertymarket during 2013 will be affected mainlyby developments on the labour market.In the slowdown that has occurred, it ismainly manufacturing industry that hasbeen affected. In the absence of a turnaround,continued weakening of the marketwill have a greater effect on service industries.There is a risk that this will have asubstantial impact on the market fornon-residential floor space.A strength at Akademiska Hus is thatour customers work in a sector that isprioritised in the allocation of resources,even in times of recession. Higher educationand research have reported goodgrowth in grant allocation in recentyears. Research in particular has developedwell. This has underpinned the continueddemand for premises that producea return on the Company’s investments.Stability in customers’ operations and along planning horizon lead to the signingof long leases. In doing so, short-termvariations in the economy have not beena source of uncertainty. Good developmentfor customers with a good creditrating has meant that other propertyplayers have shown an interest in thissegment of the property market.We predict that demand for the developmentof new and existing knowledgeenvironments will increase. This appliesmainly to the large, established centresof education with a strong research profile.There is increasing interest from foreignresearchers to establish in Sweden.The smaller centres of education willprobably face a major challenge to counterthe fall in student influx.For Akademiska Hus, it is a matter ofcontinuing to work to develop managementoperations and to reduce managementcosts with the aim of retaining andreinforcing profitability and competitiveness.FORECASTAn assessment of Akademiska Hus over athree-year period is made each year. In2012, there was a particular focus on thelarge investment portfolio. As certainprojects extend beyond 2015, the Company’stotal property value is expected toamount to around SEK 75 billion in 2018,following investments of around SEK 20billion. The investments mean that over400,000 square metres will be added tothe holdings. In addition to very largenew constructions, there will also besubstantial redevelopment and upgrading.Several large buildings will take theform of specially adapted premises thatwill have a very high market value.The expected future cash flow will bestable as rental revenue is based on acontract portfolio with a remaining termof 5.2 years. Rental revenue will increasein line with the completion and commissioningof major current new constructionand redevelopment projects. Duringproduction, the large project portfolioconstitutes a charge on the cash flow inthe form of interest expense and fees.The forthcoming three-year period isexpected to result in a significant curbon inflation, which will mean that theannual figure increases in the CPI indexwill result in a very limited increase inrent. On the cost side, development is

26AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: PROSPECTS AND FORECASTKr el kr?PROFIT FORECAST 2012Forecast2013Forecast2014Forecast2015Forecast2017/18HOLDINGSAverage rentable floor space, 1,000 m 2 3,203 3,230 3,268 3,325 3,650Property value, SEK m 54,677 59,515 63,697 66,105 75,000net investment in properties, SEK m 2,762 4,235 4,182 2,408 —PROPERTY HOLDINGSSEK m 1,000/m 280,00060,00040,0004,0003,0002,000KEY FIGURESRental revenue, SEK/m 2 1,644 1,634 1,689 1,745 2,250net operating income, SEK/m 2 1,120 1,150 1,202 1,253 1,600Yield, properties, % 7.1 6.9 6.8 6.8 6.8FINANCIAL KEY FIGURESRental revenue, SEK m 5,265 5,278 5,519 5,802 7,200net operating income, SEK m 3,585 3,714 3,927 4,167 5,100Profit before tax, SEK m 2,546 3,162 3,231 3,443 —Equity ratio, % 46 44 43 44 —Return on equity, % 6.8 8.2 8.1 8.3 —dividend, SEK m 1,355 *) 900 900 900 —Interest coverage level, % 672 547 451 465 —*)In accordance with a proposal by the Board, to be presented at the Annual General meeting on April 25, 2013.20,00002012Forecast 2013Forecast 2014Forecast 2015Rental revenue, SEK mNet operating income, SEK mForecast 2017/181,000PROPERTY OPERATIONSSEK m SEK/m 27,50002,500Kr el kr?6,0004 5003,0001,50002012Forecast 2013Forecast 2014Rental revenue, SEK mForecast 2015Net operating income, SEK mRental revenue, SEK/m 2Net operating income, SEK/m 2Forecast 2017/182,0001,5001,0005000expected to be relatively limited. Theassumptions for key parameters in theforecast are presented in the table below.FORECASTPREREQUISITES 2012 2013 2014 2015cost increaseassumption2% 2% 2%October index, cPI 316.2 2% 2% 2%Electricity, energycosts SEK/KWh0.47 3% 3%Salary increase 3% 3% 3%Insurance premium(SEK/m 2 )1.70 1.70 1.70cost of capital 3% 3% 3%Investment assessment: The same yield requirementand cost of capital are used in the valuation.Yield is also expected to continue on astable level of approximately 7 per cent.The developed property holdings will becomemore efficient and it is anticipatedthat economies of scale can be utilised.As extensive property investments takeplace within a short period of time, thelevel of internal financing will fall andexternal financing requirements will increase.Assuming that the owner’s dividendtarget remains the same, the equityratio will fall from 46.1 per cent in 2012 to44 per cent in 2015. The interest coverageratio will weaken during the period beforestrengthening again when the new propertiesbegin to generate rental revenue.Return on equity is expected to remain ataround 8 per cent during the period.The financing strategy followed byAkademiska Hus for many years will alsoremain in the face of the challenge thatwill ensue from financing future investments.A continued, well-balanced combinationof both short-term and long-termpublic financing through programmes isexpected to continue to be competitive.The substantial changes in the risk premiumson the credit market in recentyears (credit spreads) have caused manyborrowers on the property market toprioritise the bond market. The reason isthe uncertainty regarding availability ofcredit in the banking system. For AkademiskaHus, the issues that have been implementedin recent years in very longtermbonds with a term of 15–30 yearshave in part provided assurance of fundingfor the future investment portfolio.The current assessment is that the bondmarket offers financing that best limitsrefinancing risks. In spring 2013, theMinistry of Finance will conduct ananalysis of Akademiska Hus, which couldresult in a change in the financial targets.The forecast presupposes that the targetsremain unchanged.A projection of the current propertyportfolio through to 2016 has been madewhere the completion structure in thelease portfolio is expected to be renewedin the customary manner, supplementedby the expected lease term in the investmentportfolio. Presupposing that thelease terms, which are currently beingdiscussed, can be realised, an extensioncan take place during the period. Implementationof the investment portfolio isexpected to increase the average remainingmaturity from 5.2 years to 7.7 years.

AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: COMPETITORS27CompetitorsDespite its relatively high market share, in the university and college sector, Akademiska Hus has a large number of competitors.MARKET SHARES BY REGION AND LARGER CENTRES OF EDUCATION, %Regions South 54 West 49 East 66 Uppsala 74 Stockholm 74 North 71centre of lund university 67 Gothenburg univ. 55 linköping univ. 73 uppsala univ. 75 Stockholm univ. 82 umeå univ. 76education(marketmalmö university 33 chalmers 60 Örebro univ. 97 ultuna SuAS 85 Karolinska Inst. 88 luleå univ. of Tech 84share, linné universityAkademiska20 Karlstad univ. 89 Gävle univ. 87 Royal Inst. Tech. 90 mid Swe. univ. 33Hus) Alnarp SuAS 85 Borås univ. 66 Slu 68Kri.stad univ. 92 Skövde univ. 48LARGEST COMPETITORScoun. councilRegions South West East Uppsala Stockholm NorthcompetitorsVideum chalmersfastigheter Östergötl. Statens Fastighetsverk clara Foundation Balticgruppen1) utvecklings AB Kranen HIGAB Akelius Slu Property managem. Fysikhuset i Stockholm A4 Vasallennat. Prop. Board Trollhättans Tomt AB Kungsleden Fast. AB TelefonfabrikendIl nordic malmö Frageus Fastighets AB Statens FastighetsverkAlecta1)competitors according to region, with rented space in excess of 10,000 square metres, reported on a falling scale. Source: Swedish national Financial management AuthorityCONCENTRATION AND SPECIALISATIONHIGHDegree of specialisation, property typeLOWAkademiska HusCoremKlövernCastellumKungsledenDiösBalderSagaxCatenaHebaHufvudstadenFastPartnerFabegeAtrium LjungbergWallenstamDegree of geographical concentrationWihlborgsFastigheterSource: LeimdörferHIGHMARKET SHARES PER REGION%100806040200Southern RegionWestern RegionEastern RegionUppsala RegionStockholm RegionMarket share, Akademiska HusMarket share, other property companiesAkademiska Hus's average market shareNorthern RegionBRANDThe Akademiska Hus vision is to be aworld leader in knowledge environments.We are definitely the expert in Sweden inknowledge environments. No one elsecan offer our collective experience andexpertise. Clarifying our offer to thecustomers is part of the challenge in ourbrand development work.CAMPUS CONCEPTAkademiska Hus works proactively todevelop the knowledge environments ofthe future. Through the campus concept,we work with our customers to developtheir operations and brands. This isbased on an ongoing dialogue and monitoringof the development and needs ofthe centres of education. Our unique positionas a property owner is noticeablemainly on campuses. The campuses andtheir closely connected properties, witheducation and research buildings, librariesand restaurants gathered in one place,interact and create unique conditions.OTHER COMPETITIVE FACTORSAkademiska Hus strives to establishgood, long-term relationships with customers.Customer requirements changeand the demand for modern, efficient,well-located premises is currently on theincrease. Customer needs are reflectedin the Akademiska Hus project portfolio.Extensive new construction and developmentprojects are taking place to offerthe best and most cost-effective solutionsin the provision of premises to satisfycustomers.MARKET POSITIONAkademiska Hus is one of the largest propertyowners in the country. The propertyholdings comprise knowledge environments.Universities and colleges account for approximately90 per cent of the rental value.By specialising in properties for educationand research, we have acquired a marketshare of 63 per cent. Geographically, AkademiskaHus has operations at 28 locations, although80 per cent of the rental value is concentratedon the six largest towns and cities.COMPETITORSCompetition has increased in recentyears. There is now a large, stated interestin investing in community propertiesand quality properties with long leases.Universities and colleges are attractivetenants. They have good payment capacityand a long-term need for premises. Thefinancial crisis and government debtcrises have resulted in increased riskaversion. In the property segment, capitalis being drawn towards property typeswith safe, stable cash flows with a subsequentlow risk.The fact that an increasing number ofcompanies are showing an interest inthis sector of the non-residential marketcan be attributed to universities and collegesmoving to newly established universitycampuses and choosing, morethan was the case previously, to move topremises that are more efficient in termsof cost and utilisation of floor space.

28AKAdEmISKA HuS 2012CUSTOMERS AND MARKET: MARKET SHAREMarket share 2012Akademiska Hus operates at 28 locations throughout the country– locations where Sweden is growing as a nation of knowledge.calculated as a proportion of the floor space for university andcollege premises, Akademiska Hus’s market share is 63 per cent.In the development of Sweden as a nation of knowledge, thelarge, well-established university locations are of particularimportance because of their research. Akademiska Hus hasa stronger presence at these locations.The map shows Akademiska Hus’s share of the floorspace leased by universities and colleges at our largestlocations.LuleåUmeåSundsvallGävleÖrebroKarlstadUppsalaStockholmSkövdeGothenburgLinköping/NorrköpingBoråsVäxjö/KalmarLundMalmöKristianstadLommaAkademiska Hus's shareOther property ownersIncrease in population >0.5%Increase in population

AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: LEASES, REVENUE AND VACANT SPACE29Leases, revenue and vacant spaceProperties with stable cash flows and a low rent riskThe relatively long lease terms in the lease portfolio reflects stability and long-term thinking in the cash flow.Management can be seen as anumbrella concept covering all thetechnical and financial measurestaken during the lifespan of a building.As opposed to construction, propertymanagement is a process extending overa long period, where quality and contentemerge over time in line with changes incustomer needs. Management coverseverything from the strategic part, whichincludes the portfolio content, what is tobe built and how general customer andmaintenance policies are handled,through to the operative part, which includesongoing technical, financial andadministrative care of the buildings.LEASESThe Akademiska Hus lease portfolio ischaracterised by long leases with universitiesand colleges.The average term for newly signedleases is just over 10 years. At the end of2012, the average remaining lease termwas 5.2 years (5.6). Over the past 5–10years, the remaining lease term has fallenby approximately one year on average.The reason for the fall in the lease termis that a large proportion of the AkademiskaHus property holdings were built upduring the 1990s following major newconstruction and redevelopment andsubstantial refurbishment, often withlong leases of 10 years or more. The majorityof these leases have fallen due forrenewal and in conjunction with renegotiationsthey are replaced by shorter leases,often three years, as the customerseeks greater flexibility. A large proportionof the lease is for specialist buildingsfor research and development and the assessmentis that the probability of leaserenewal is higher at Akademiska Huscompared to other property companies.A shorter lease does not entail the samerisk compared to new leases for moregeneral premises. For larger, complexspecialist buildings for laboratory andresearch operations, a lease is normallyrequired where a large proportion of theinvestment is repaid within the term ofthe lease, which means leases of 10 yearsor more. For premises that are more spe-BioCentre, Swedish University of Agricultural Sciences, Uppsalacially adapted, it could be difficult to findalternative uses without carrying out extensivereconstruction. To handle thisrisk, very long leases are required. Inconjunction with new construction andredevelopment, general premises aresought, i.e. premises that can be adaptedeasily to other activities if the tenantchooses to move.Akademiska Hus has 1,330 leases witha total rental value (current rent) ofSEK 5,612 million. The average lease isfor 2,408 square metres with an annualrent of SEK 4.3 million.The average remaininglease term is 5.2 years.Only 2.6 per cent of thefloor space or 1.0 per cent ofthe rental value is vacant.

30AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: LEASES, REVENUE AND VACANT SPACERENTAL REVENUESEK m SEK/m 26,0001,8005,0001,5004,0001,2003,0009002,0006001,00030002008 2009 2010 2011 20120Rental revenue, SEK mRental revenue, SEK/m 2LEVEL OF VACANT SPACE%43210RENT LEVEL PER REGIONSEK/m 22,0001,5002008200920102011Level of vacant space, areaLevel of vacant space, rent2012VACANT SPACE 31-12-2012Property Location m 2 income, SEK m sinceLoss of rental Vacantcentre for chemistry andchemical Engineering Building 4lund 11,564 4.6 2010-10mathematical Sciences Gothenburg 5,666 6.6 2007-07Stora Institutionen uppsala 5,352 0.0 2012-01laboratory building Stockholm 3,384 3.4 2012-02Electrum 1 Stockholm 3,373 3.2 2009-10clinical centre Building 3 uppsala 2,536 1.7 2004-07limnologen uppsala 2,484 1.0 2007-04Forum Stockholm 2,417 2.7 2009-06ultuna, miscellaneous uppsala 2,200 0.9Offices uppsala 2,070 0.7 2006-07Terra linköping 1,899 1.8 2005-01laboratories and offices Stockholm 1,862 1.2 2012-02Equipment building lund 1,845 0.7 2006-07Information Technology centre uppsala 1,812 0.5 2008-07Västra lugnet uppsala 1,733 0.3 2012-07Workshop uppsala 1,724 0.7 2012-01Swartling Stockholm 1,656 0.0 2006-09central Block uppsala 1,646 0.9 2006-11mechanical Engineering Building Stockholm 1,420 1.0 2002-01Bmc uppsala 1,396 1.9 2006-01clinical centre Building 4 uppsala 1,393 1.0 2004-07Stora logen Alnarp 1,287 0.1 2005-07Technology Building uppsala 1,116 1.2 2010-07Fyrkanten uppsala 1,104 0.0 2008-07c Building Skövde 1,086 0.8 2010-02Galaxen linköping 1,050 1.1 2009-04Electrum 3 Stockholm 1,000 1.5 2010-05Tornavägen 4 lund 1,000 0.1 2007-09Other properties 15,516 12.9TOTAL 82,591 (2.6%) 52.5 (1.0%)1,0005000SouthWestEastRent/m 2Rent/m 2 , average, GroupLEASE RENEWAL STRUCTURE,PROPORTION OF LEASE VALUE%5040UppsalaStockholmNorthLEASE RENEWAL STRUCTURERenewal yearNumberof leasesCurrent rent,SEK mProportion ofleases, %Proportion ofrent, %2013 292 339 22 62014 324 826 24 152015 256 741 19 132016 142 599 11 112017 65 379 5 72018 50 419 4 72019 and later 201 2,309 15 41TOTAL 1,330 5,612 100 10030LEASE PERIODS, REGIONS20100201320142015201620172018 2019and laterRegionsAverage leaseterm, yearsAverage remaininglease term, yearsSouth 9.7 4.8West 10.9 5.1East 9.0 4.4uppsala 11.4 6.8Stockholm 9.9 5.1north 8.4 4.3TOTAL 10.0 5.2

AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: LEASES, REVENUE AND VACANT SPACE31During 2012, seven per cent was renegotiated,equivalent to SEK 326 million ofthe lease portfolio in rental value. During2013, 292 leases will be renegotiated,equivalent to 22 per cent of the totalnumber of leases but only six per cent ofthe lease value.In conjunction with renegotiations,the renewal structure is taken into accountwith the aim of achieving an evenspread over time to minimise the timerisk. Over the next few years, there is agood spread in the lease renewal structure.RENTAL REVENUEFully leased, rental revenue, includingsupplements for 2012, totalled SEK 5,364million (5,238). The increase is attributableto the commissioning of new buildingsand completion of redevelopmentprojects amounting to SEK 63 million.Index-linked increases for 2012 resultedin an increase in rental revenue of SEK52 million. The completed sale in Kalmarduring the year affected rental revenuenegatively by approximately SEK 14 million.Rental revenue was on average SEK1,644/m 2 (1,599). The rent level variedbetween SEK 1,349 per square metre inthe Northern Region and SEK 1,975 persquare metre in the Stockholm Region.The difference can be attributed largelyto varying market conditions but also tothe fact that the combination of leasedpremises varies between the regions. Ahigher proportion of laboratories meansincreased rent levels. On average, theproportion of laboratories is 34 per centbut varies between the regions. TheWestern Region has 25 per cent laboratorieswhilst in the Uppsala Region thefigure is as high as 46 per cent. SEK 77/m 2(82) or around five per cent of the rentlevel refers to the customer’s specificrequirements, i.e. a supplement for eithertenant adaptations or media provision.The attraction of having universitiesand colleges as customers has led togreater competition. Long-term centresof education with a good credit rating areattractive tenants. Competition meansthat unchanged rent levels in conjunctionwith renegotiation should be regarded assatisfactory. Renegotiation of existingleases during the year has at a number oflocations frequently led to unchanged orslightly lower rent levels. Renegotiationsrefer essentially to specialist buildingswhere the initial lease repaid a large proportionof the investment within the initiallease period. In these renegotiations,it is difficult to retain the rent levels onthe grounds of technical development ifthe properties have not been developed.Overall, the increased rent level mainlyreflects the fact that several new buildingswere completed during the year.LETTING AND VACANCY LEVELSAkademiska Hus specialises in buildingsfor universities and colleges. The strongrate of growth since the 1990s for thesebuildings has led to a very high lettinglevel of 97.4 per cent. However, with largeproperty holdings, even a very low levelof vacant space results in large areaswithout a tenant. Akademiska Hus isfollowing the trend on the regionalmarkets very closely to minimise vacantspace.The increased need for space in thehigher education sector has mainly beenmet through new construction. Often ithas been a case of specialist buildingsfor laboratory and research activities,resulting in long leases of ten years ormore.There continues to be a good influxinto higher education and research isgrowing. Several customers are planningnew buildings and the Akademiska Husproject portfolio is larger than ever. However,the picture for the different centresof education varies. In 2011, operationsincreased substantially, particularly research.A high proportion of the increaseis concentrated on a small number ofcentres of education and the AkademiskaHus project portfolio is focused on theUppsala and Stockholm regions. In linewith extensive new construction, older,less modern premises become vacant, asthey do not match up to the educationand research environments envisaged forthe future.The total holdings at the end of 2012amounted to 3,207,528 square metres, ofwhich 3,124,937 square metres, or 97.4per cent, have been let.Vacant space amounted to 82,591square metres (82,417), equivalent to 2.6per cent (2.6). The loss of rental revenueresulting from the vacant floor space isvalued at SEK 52 million, giving a financiallevel of vacant space of 1.0 per cent(1.2). A large proportion of the vacantspace is in simpler premises with a rentalvalue that is lower than average.Based on the dialogue that is taking placewith the Company’s customers and theforecasts made for the letting of vacantpremises, the level of vacant space isexpected to remain on the present levelduring the period 2013–2015.VACANT SPACE PER REGIONIn the Northern Region, there is vacantspace totalling less than 1,000 squaremetres.The Uppsala Region has vacant floorspace totalling approximately 30,000square metres, of which the UltunaCampus accounts for around 18,000square metres. In the Ultuna area ofUppsala, a new campus is emerging.Parts of the holdings in Ultuna are inpoor condition and are due to be demolished.In the Stockholm Region, the level ofvacant space is approximately 20,000square metres. Kista is the sub-market inthe region where the Company has thehighest level of vacant space, almost7,000 square metres.In the Eastern Region, the level ofvacant space is just over 3,000 squaremetres, of which the Terra property inLinköping accounts for 1,900 squaremetres and Galaxen in Linköping 1,000square metres. There is no vacant spacein Örebro or Norrköping.In the Western Region, there is vacantspace totalling around 9,000 squaremetres. The largest individual block ofvacant space is at the Mathematics Centreon the Chalmers University of Technologycampus, standing at just over 5,600square metres. The Mathematics Centrewill be used in the short term for evacuationwhen modernisation commences ofthe School of Architecture and the Departmentof Civil and EnvironmentalEngineering on the Chalmers campus.In the future, the co-operation agreementwith Johanneberg Science Park willresult in the development of theJohanne berg Campus in Gothenburg.In the Southern Region, vacant spaceamounted to around 20,000 square metresand comprises mainly outmoded premiseson the Lund University of Technologycampus, mainly the Centre for Chemistryand Chemical Engineering, which will beused for evacuation purposes.

32AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: OPERATING AND MAINTENACE COSTSOperating and maintenance costsSystematic follow-up processes and operational optimisationOperating costs are the largest single expense within property management that can be influenced.Operations comprise two sub-processes: Media provision and Monitoring and service.The aim is to reduce purchasedenergy by 40 percent through to 2025.media provision accountsfor 69 per cent of operatingcosts. during 2012, two majorprojects commenced in the energyfield.Operation’ and ‘maintenance’ aredefined as follows according to theindustry standard (Property ManagementInformation Association, PropertyGlossary 2008): Operating costs arecosts incurred to keep a property, installationor similar facility functioning. Operatingcosts are divided into:• Media provision. This covers the supplyof electricity, water, fuel, gas, compressedair, district heating and coolingas well as television, radio, telecom andcomputer signals.• Monitoring. This covers observationof the functioning of a managementobject, including fittings, equipmentand reporting of deviations. Examplesof monitoring include various forms ofinspection.• Service. Includes adjusting or lookingafter the management object: fittings,equipment, replacement or supply ofconsumables. Examples of service includechanging drive-belts and airfilters, cleaning and less complicatedremoval of graffiti.Maintenance costs are all the technical,administrative and operative measurescarried out during the lifetime of a unitwith the aim of maintaining the unit orrestoring it to such a condition that it canBiomedical Centre, Lund Universityperform the required function. Maintenancecosts are divided into:• Remedial maintenance. Maintenancecarried out after an operational faulthas been discovered and with the aimof restoring the unit to a condition inwhich it can carry out the requiredfunction. An example of remedialmaintenance is repairing a roof leak.• Preventive maintenance. Maintenancecarried out at pre-set intervals or inaccordance with pre-set criteria withthe aim of reducing the probability of afault or degradation in the functioningof a unit. An example of preventivemaintenance is planned replacementof a ventilation unit.• Project maintenance. Maintenancemeasures carried out in conjunctionwith redevelopment.• Tenant adaptations. Maintenancemeasures in conjunction with a newtenant or the renewal of a lease.OPERATING COSTSAkademiska Hus has established a boldobjective aimed at reducing energy use.The aim is to reduce the volume of purchasedenergy per square metre by 40per cent through to 2025 compared to2000. The continued development oftechnical solutions will mean that thebuildings will to an increasing extentproduce their own energy and thus becomeself-efficient. This objective meansthat the use of energy can be reduced bya further 25 per cent compared to theoutcome for 2008. This means an approximatereduction of 2 per cent perannum. In 2012, the target was achievedand compared to the situation at thestart in 2000, we are proceeding accordingto plan.Operating costs for 2012 were SEK870 million (885), which is equivalent toSEK 272/m 2 (277). Media provisionaccounts for 69 per cent of the operatingcosts, which amounted to SEK 598 million(618) or SEK 187/m 2 (193).Akademiska Hus laboratory premisestotal 1.1 million square metres, which isequivalent to 34 per cent of the propertyholdings. The high proportion of laboratoriesmeans that Akademiska Hus hasrelatively high operating costs. The technicalcomplexity of the buildings has atangible impact on operating costs. Themajority of new and redeveloped premisesadded in recent years have largely beenin the form of extensive laboratory facilities.Laboratories are more resourceintensivethan normal teaching premises,both from an energy point of view and interms of maintenance and care. AkademiskaHus properties are used for a largepart of the day and night and the lengthof time they are used is gradually increasing.Energy use per square metre has fallen.However, due to the sharp increase inenergy prices, total operating coststhrough to 2010 increased. During 2011and 2012, the price of energy fell and waslower than in previous years.

AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: OPERATING AND MAINTENACE COSTS33Operating costs as a proportion of rentalrevenue were relatively stable at 17 percent for 2012 (17). Volume benefits whenprocuring from energy providers as wellas co-ordination gains, the best examplebeing Group procurement of electricityon the electricity exchange Nord Pool,are also contributing to a reduction inoperating costs.To handle variations in the price of electricity,78 per cent of the estimated use for2013 had been hedged as of year-end.ENERGY-SAVING INCENTIVESThe aim is to divide the energy cost betweenAkademiska Hus and the customerseffectively and in a way that providesan incentive for both parties to make energysavings. The division of the energycosts is governed in part by the nature ofthe energy use and in part by the type ofbuilding.The incentive is based on the principlethat the party that makes the investmentshould also receive the financial benefitof the reduction in energy use. Energywork is focused increasingly on investmentsand the fact that it is the propertyowner that can influence use the most.In the opposite way to apartments, energycan be saved if the lease is formulated insuch a way that heating and cooling areincluded. This can be explained by thefact that investments frequently involvepre-emptive maintenance, where functioningyet energy-inefficient equipmentis replaced. To make these investments,it is natural that the property owner alsobenefits from the reduction in energyuse. In the case of electricity, there is notthe same clear, contractually dependentlink and it is natural that the tenant ischarged separately for the power used inits operations – for lighting and computersfor example.Akademiska Hus assumes full responsibilityfor the energy used in the buildings.Not only do we focus on the energythat is used to operate the buildings, wealso include the tenants’ power for computersand lighting in our energy objectives.The task of reducing energy useand load on the environment is somethingwe are seeking to pursue in collaborationwith the tenant.Akademiska Hus has always foundedits energy work on mitigating its environmentalimpact by reducing energy use.ENERGY-SAVING WORKThe choice of incentive model is not themost important factor when reducingoperating costs.On the regional level, there are variationsin the operating cost structure, themost common reasons being:• Different degrees to which the cost ispassed on to the tenant, particularly forenergy, which means a variation in incentivesfor the tenants to manage theiruse of energy.• The age structure of the buildings is ofsome significance as older buildings aremore energy-intensive.• Locations with technical and medicalresearch and development generallyhave higher energy costs due to thehigher proportion of laboratories.During the year, an ultramodern energycentre was commissioned that willreduce the amount of energy used forcooling at Kristianstad University. Usinga new, environmentally friendly system,the district cooling at the University canbe extracted entirely from groundwater.At Akademiska Hus, it is self-evident toadopt a long-term, sustainable approachand the Company is at the forefront intechnology in many areas. Smart technicalsolutions mean that an increasingproportion of our buildings have extremelylow energy use. Our aim is thatall our new buildings will be environmentallyclassified and at least satisfythe stipulations at Sweden GreenBuilding Council Miljöbyggnad silvercertification level. Since 2010, when theGuarantees of Origin of Electricity Actwas introduced, Akademiska Hus onlypurchases renewable electricity with aguarantee of origin. The aim is to demonstrateour desire to move towards fossilfreepower generation.To make a serious difference thegreatest focus must be on existing holdingsand working actively on a day-to-daybasis to reduce operating costs, mainlythrough operational optimisation ofexisting systems. Where possible andprofitable, work is also being done tointroduce new, more energy-efficienttechnical systems. Knowledge of energyuse in buildings is a critical area of expertiseif efficiency-enhancing measuresand technical system changeovers are tobe implemented. Examples of changes intechnical systems are the large groundstorage facilities that have been installedin Lund, Örebro, Gothenburg andKristianstad.The day-to-day work on energy followupprovides a good basis for making decisionsregarding improved efficiency andoptimisation. The Energy Portal is an ITsystem for the collection, follow-up andanalysis of energy use. The Energy Portalprovides employees in the Group with aclear overview of energy use. The systemis based on automated energy readingsand allows action to be taken on differentlevels in the system and to measure theeffect of investments.Within Akademiska Hus propertyoperations, the majority of simple, energysavingmeasures have already beenimplemented. To move on in our energywork, more complicated and extensivemeasures are required.During 2012, two major projects commencedin the energy field.• Requirement definition and introductionof a joint, systematic follow-upprocess. A clearer basis for follow-upand comparison in the energy field willprovide greater similarity in energyfollow-up as a means of facilitatingenergy use comparisons betweendifferent buildings and different regions.It will be easier to identify energysavingmeasures that lead to more efficientenergy use.• Systematic work aimed at operationaloptimisation and directed energy initiativesas well as training of operatingtechnicians. Knowledge will increaseamong operating staff through trainingthat will lead to improved and assuredoperational optimisation. The trainingis expected to result in an optimisedworking approach and greater transferof knowledge regarding efficient energyuse. The project is also expected to contributeto greater motivation amongoperating staff.MAINTENANCE COSTSAkademiska Hus property holdings areof a very good standard. Extensive maintenancework has been carried out in thepast with the aim of improving thestandard of the property holdings. Becauseof the measures taken previously,the assessment is that the cost of maintenancecan be preserved in the future. In2012, maintenance costs were reducedcompared to the previous year.Maintenance costs for 2012 totalledSEK 564 million (603), of which SEK 77million (74) refers to remedial maintenance,SEK 190 million (200) refers topreventive maintenance, SEK 162 million(212) refers to project maintenance andSEK 135 million (117) refers to customeradaptations. Average maintenance costsfor the year totalled SEK 176/m 2 (189).Remedial and preventive maintenanceaccount for SEK 83/m 2 (86) and projectmaintenance totalled SEK 51/m 2 (66). Aregional breakdown of the maintenancecosts is shown in the table. Maintenancecosts vary between regions, mainly dueto project maintenance in conjunctionwith redevelopment.

34AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: OPERATING AND MAINTENACE COSTSOPERATING COSTS, SEK M South West East Uppsala StockholmRegionsNorthElectricity 55 52 40 78 146 35 406Heating 27 24 20 47 41 14 173Water 3 4 2 6 3 4 22cooling 5 1 4 1 7 1 20Energy, other 5 0 0 0 0 0 5TOTAL MEDIA PROVISION 95 81 66 132 197 54 598land costs, maintenance etc. 10 7 6 16 22 8 69Building costs 18 9 3 12 21 7 70Waste management 3 3 0 2 6 3 17labour cost, operation 13 18 8 18 21 9 85Other -1 5 4 3 19 1 31TOTAL, MONITORING AND SERVICE 43 41 20 50 88 29 271TOTAL OPERATING COSTS 137 123 86 182 285 83 870Operating costs in SEK/m 2 276 246 245 317 317 220 272of which media provision, SEK/m 2 190 163 188 230 219 144 187Proportion of energy cost passed on 31% 32% 33% 50% 46% 24% 40%* The Group total includes certain central items not allocated according to region.Group,total*OPERATING COSTSOPERATING COSTS – proportion of rental revenueSEK m SEK/m 2 %OPERATING COST BREAKDOWN 2012 – proportion1,000750500250400300200Driftskostnader - andel av hyresintäkter1002019181716SEK 31 m (3%)SEK 85 m (10%)SEK 17 m (2%)SEK 70 m (8%)SEK 69 m (8%)SEK 598 m (69%)020082009Operating costs2010Of which media provisionOperating costs, SEK/m 2OPERATING COSTS 2011-2012SEK m7006005004003002001002011Of which media provision SEK/m 202012015200820092010A Media provisionB Land costs, maintenance etc.C Building costsD Waste managementE Labour cost, operationF Other20112011 2012FEDCBA2012Media provisionLand costs, maintenance etc.Building costsWaste managementLabour cost, operationOtherMAINTENANCE COSTS, SEK M South West East Uppsala StockholmRegionsNorthRemedial and preventive maintenance 42 44 22 46 89 24 267Project maintenance 66 5 0 18 58 15 162customer adaptations 30 20 22 40 3 20 135TOTAL MAINTENANCE COSTS 139 69 44 104 149 59 564maintenance costs in SEK/m 2 279 138 126 182 166 155 176of which remedial and preventive maintenance, SEK/m 2 85 88 61 80 98 64 83of which project maintenance, SEK/m 2 134 10 1 32 64 39 51of which customer adaptations, SEK/m 2 60 40 64 70 3 52 42Group,totalMAINTENANCE COSTSSEK m SEK/m 21,00080060040020002008200920102011Maintenance costs, SEK mMaintenance costs, SEK/m 25002012250200150100MAINTENANCE COSTS%3025201510502008 2009 20102011Maintenance costs/Rental revenue2012Maintenance costs/Net operating incomeMAINTENANCE COSTS 2012 – proportionSEK 135 m(24%)SEK 162 m(29%)SEK 267 m(47%)Remedial and preventive maintenanceProject maintenancecost of customer adaptations

AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: PROFITABILTY AND YIELD35Profitability and yieldProfitability stableProperty Management has reported stable results. Net operating income has improved due to loweroperating and maintenance costs.Property management is developingpositively with a stable level of profit.During 2012, property managementincome increased by SEK 133 millioncompared to the previous year, and at thesame time property management costsfell by SEK 64 million. Net operating income,i.e. rental revenue with a deductionfor management costs, comprising operatingand maintenance costs as well ascosts for property administration, totalledSEK 3,585 million (3,389). The improvementcan be attributed to increasedrental revenue, which is a result of thecommissioning of new facilities, completedredevelopment projects and reducedoperating and maintenance costs. Thenet operating income ratio was 65 percent (63) and is on a par with the averagefor the industry. Development of propertymanagement has been prioritised. Workis continuing generally to raise the netoperating income ratio through longtermco-ordination and improved efficiencyin property management.Expressed in SEK/m 2 , the net operatingincome was SEK 1,120/m 2 (1,059) andvaries between SEK 903/m 2 in theNorthern Region and SEK 1,429/m 2 inthe Stockholm Region. The net operatingincome ratio varies between 58 per centin the Southern Region and 70 per cent inthe Eastern Region.YIELD AND TOTAL YIELDYield was 7.1 per cent (6.9) of the assessedfair value. The increase can be explainedby the fact that the net operating incomeincreased more in relative terms than theproperty value.Total yield for 2012 was 6.8 per cent(7.8), of which the yield was 7.1 per cent(6.9) and the increase in value was -0.3per cent (0.9). The total yield for 2012according to the SFI Property Index was6.4 per cent, of which the change in valuewas 1.2 per cent and the yield 5.2 percent. Akademiska Hus properties havestrong net operating income, stable cashflows and a low rental risk (long leases,tenants with a good credit rating). Thegeographically broad portfolio also offersa good spread of risk that can benefitfrom growth in strong regional markets,such as university and college towns andcities. The larger university centres aregrowing through investment in researchand development and the systematicupgrading of their use of premises toachieve improved efficiency and greaterappeal. The properties are of high qualityand there is a strong demand. They areregarded as relatively secure investmentobjects with a stable yield in both goodtimes and bad.RETURN ON EQUITYAND TOTAL ASSETSThe return on equity for 2012 was 6.8 percent (9.2) and the return on total assetswas 5.3 per cent (6.5). The change inreturn on equity is due to a lower pre-taxprofit of SEK 2,546 million (3,252). Netoperating income increased by SEK 196million. In addition, there was thechange in value of investment propertiesin 2012 of SEK -291 million (361) whilstnet financial interest income and expenseamounted to SEK -682 million (-452).Return on equity was 8.3 per cent (7.8),excluding the change in value of properties.Over the past five years, return onequity, excluding changes in the value ofproperties, has been between 7.8 and 9.6per cent, reflecting the stable earningcapacity in net operating income.One of the owner’s requirements forprofitability is that the return on equityshould be equivalent to the average fiveyeargovernment bond interest rate plusfour percentage points viewed over abusiness cycle. The average return onequity over five years was 5.9 per centwhilst the target was 6.4 per cent.School of Business, Economics and Law,Gothenburg University

36AKAdEmISKA HuS 2012PROPERTY MANAGEMENT: PROFITABILTY AND YIELDLindellhallen, Umeå UniversityNET OPERATING INCOMESEK m %4,00080NET OPERATING INCOME ANDNET OPERATING INCOME RATIOSEK/m 2 %1,60080INCOME AND PROFITSEK m6,000 Driftöverskott, kr/kvm3,000601,200604,5002,00040800403,0001,00020400201,50002008 2009 2010 2011Net operating income, SEK mNet operating income ratio, %020120SouthWestEastUppsalaStockholmNet operating income, SEK/m 2Net operating income ratio, %Net operating income ratio, averageNorth00AA Income from property managementB Net operating incomeC Pre-tax profitBC20112012RETURN ON EQUITY%TOTAL YIELD%151296302007 2008 2008 2009 2009 2010 2010 2011 2011 20121086420-2-4-620082009201020112012Average return on equity over five yearsAverage return target over five yearsChange in value, %Yield, %, excluding propertiesunder constructionTotal yield, properties, %

AKAdEmISKA HuS 2012FINANCIAL POSITION: PROPERTY VALUATION37Property valuationUnchanged yield levelsDespite the slowdown in the economy, there continues to be a demand for modern, flexible buildings ofa high technical standard.CHANGE IN THE VALUE OF PROPERTY HOLDINGS DURING 2012SEK MAssessed fair value, december 31, 2011 52,071Investments in new construction and redevelopment 2,901Acquisitions 7capitalised interest expense 107Sales -146change in market value -262of which change in value as a result of a change in the cost of capital and yieldrequirement-29of which change in value as a result of a change in the assumed rate of inflation -232of which change in value as a result of a change in the value index (valuationlocation, average remaining term, type of premises)-262of which capitalised interest expense -107of which commissioned projects, revaluations of cash flows etc. 367ASSESSED FAIR VALUE, DECEMBER 31, 2012 54,677The market is now focusingmore on properties withstable cash flows and lowrental risk, which is to theadvantage of AkademiskaHus.Strong demand means unchangedyield requirements and cost of capital.uncertainty about the futurecould lead to rising yield requirements.MARKET VALUATION 2012The fair value of Akademiska Hus propertiesas of December 31, 2012 wasSEK 54,677 million (52,071). Investmentin new construction and redevelopmenttook place totalling SEK 2,901 million(2,254). Sales amounted to SEK 146 million(117). The fair value has been calculatedby means of an internal property valuationcovering all the Company’s properties.The unrealised change in value forthe year is SEK -262 million (364). Thefair value per square metre is SEK 15,504(15,220).Future-oriented indicators signify acontinued slowdown in the Swedisheconomy with a slow rate of growth.There is a significant risk of a downturnand the rate of growth could be weakerand more protracted than previous forecast.No significant increases or decreasesin rent were noted during the year.With the current recession and persistentlyhigh unemployment, it is consideredlikely that the rental market willweaken during the coming year. In thelight of this weak rate of development, thedemand for premises is being driven by adesire to make more efficient use of floorspace and to reduce the total area. Forthis reason, there is a continued demandfor modern, flexible premises of a hightechnical standard. Demand is mainlyfor new or redeveloped, upgraded premisesin prime locations. However, it is difficultto assess future development. Thetrend on the property market regardingrents and vacant space is difficult to forecastat the present time. There are alsoother controlling factors, such asinterest rates, access to credit and the demandfor alternative investment objects.In time, there is a risk of a rise in yieldrequirements. Based on the current stateof the market, the assessment is thatyield requirements for Akademiska Hus’smodern, well-located premises will continueto be relatively stable in the shortterm.CHANGES IN THE FAIR VALUE OF INVESTMENT PROPERTIES, REGIONS, SEK MRegion 31-12-2012 31-12-2011 ChangeOf whichinvestments/acquisitionsOf whichsales/disposalsOf whichunrealised changein valuenorth 4,096 4,057 40 63 — -23uppsala 10,094 9,424 670 987 — -317Stockholm 22,335 20,859 1,475 1,400 — 76East 4,557 4,496 62 95 — -33West 6,975 6,771 204 111 — 93South 6,620 6,464 156 254 -146 48TOTAL 54,677 52,071 2,606 2,908 -146 -156

38AKAdEmISKA HuS 2012FINANCIAL POSITION: PROPERTY VALUATIONAKADEMISKA HUS MARKET SEGMENTThe geographically diverse portfoliooffers a good spread of risk, supported bydevelopment of strong, regional marketssuch as university and college towns andcities. Akademiska Hus property holdingsare mainly on campuses in attractivelocations in established universitycities. The risk level in these locations islimited by access to an active, highly efficientrental market. Properties are to befound in a market segment that is normallydesignated community properties.Tenants have a state or municipal principaland thus have a very good credit rating.This means that stable cash flowscan be assured through long-term leases,resulting in a low rental risk. There hasbeen a strong demand for AkademiskaHus properties for many years and theyare regarded as good investment objects.In contrast to commercial properties ingeneral, they offer a stable yield irrespectiveof fluctuations in the economy.Characteristic for Akademiska Husare very long leases with stable customerswith a good credit rating. Some 90 percent of income derives from the dominantcustomer group, universities and colleges.All universities and colleges, apart fromChalmers University of Technology, havethe Swedish government as principal andthus the highest credit rating. The averageremaining lease term is 5.2 years(5.6).The larger university centres aregrowing mainly through research andthe systematic upgrading of their use ofpremises to achieve improved efficiencyand greater appeal. The appeal of the oldcentres of education can also be explainedby the fact that they are locatedin the city regions. Almost 70 per cent ofthe resources for higher education andresearch go to the three city regions.This trend is very noticeable in the AkademiskaHus project portfolio.MARKET RISKAll property holdings are exposed to themarket risk associated with property asan asset. Even Akademiska Hus propertyholdings are subject to this type of riskexposure and we need to handle variationsin general yield requirements thatare explained by investor preferencesswitching to other types of assets, theconstruction and contracting market,financial opportunities and societalcontrol.PROPERTY RISKProperties are focused on a fixed location,permanent and capital-intensive.The property-specific risk premiumshould therefore reflect the fact thatproperties have a poorer liquidity thanfinancial assets as well as the positionand condition of the property, the lengthof the lease, the payment capacity of thetenant, the net operating income, thetechnical risk, the environmental loadand the fact that the level of vacant spacecan change.The conclusion is that as investmentobjects, properties must generate a higheryield than risk-free interest.VALUATION MODELThe Akademiska Hus valuation modelcomplies with good market practice inthe property industry and the yield requirementsare based on companyspecificconditions and conditions in theproperty industry generally. The propertieshave been valued individually withouttaking into account portfolio effects.For an initial calculation period of 10years, a current value is computed for thecash flow generated each year using anominal cost of capital. In addition, theresidual value after year 11 is estimatedbased on actual market yield requirements.This residual value is in turncalculated at the current value using thecost of capital.The starting point when choosing thecost of capital is the nominal interestrate on the secondary market for governmentbonds with a term equivalent to thelength of the calculation period. A riskpremium is added to cover the marketrisk and the property-related risk.In the case of Akademiska Hus, thecash flow is largely assured through longleases during the calculation period.Under these conditions, the uncertaintythat a portfolio with shorter leases wouldentail is limited.The yield requirements are assessed,as far as possible, using the propertytransactions that have been completedon the market and, as far as possible, usingcomparable properties and in-houseanalyses. Each year, Akademiska Hus hasthe yield requirement, cost of capital andother valuation prerequisites verified byCASH FLOW MODELThe yield requirementis used to capitalisethe cashflow for the remainingperiods.Year 1 2 3 4 5 6 7 8 9 10 11+Total residual valueof cash flowsCurrentresidual valueCost of capital=Market value

two independent valuation institutes,NAI Svefa and DTZ.Both cost of capital for discountingcash flow and the yield requirement havebeen differentiated depending on thetown, location, lease term and type ofpremises for each property. The risks arethus analysed in several dimensions andare generally assessed to be higher forproperties with shorter leases, laboratorypremises and properties located outsidethe city regions. The differences in yieldrequirement between different propertiesare greater compared to the differencesin the cost of capital due to the factthat the yield requirement reflects moreclearly uncertain conditions after yearten.RESIDUAL VALUEAkademiska Hus operates in a specificsegment of the property market wherethe residual value is slightly more uncertainthan for more general properties,such as office buildings and residentialbuildings, which means that they are notavailable for new tenants or other purposeswithout substantial redevelopment.This applies above all to buildingsoutside the city regions that have a significantelement of specific operationallyadapted premises. An assessment mustbe made of the risk in the cash flow in thevery long term. After an initial calculationperiod, the more property-specificrisks when assessing the residual valuemust be reflected in more concrete termsin the form of the yield requirement. Atthe point at which the residual value isset, an assessment is made of prevailinguncertainty regarding standard, technicalrisk, adaptation requirements andvacant space. These risks are quantifiedmainly in the form of charges on the cashflow rather than in the risk premium.The reported fair values are assessedin an environment where uncertaintyand incomplete information exist forthe parameters at the time of valuation.Sudden changes in external circumstancescan occur and the fair values can beaffected relatively quickly. The valuesreflect the opinion held by AkademiskaHus at the time of the valuation, wherewe have accumulated solid experience infollowing and valuing our properties overtime. The customary uncertainty rangein conjunction with external valuationsis usually +/- five per cent, which representsa change in the property value ofSEK 2,700 million.VALUATION CONDITIONS 2012There has not been any general changeduring the year in the yield requirementor cost of capital in the internal propertyvaluation. The present situation, withrecord-low nominal and real interestrates is reflected in a slight rise in riskpremiums for property investments. Thedifference noted previously for yieldrequirements between good and less attractiveobjects continued during 2012.Well-situated, efficient properties with astrong customer base and high rentalpotential are in greatest demand and areless sensitive to external changes.The very low rate of inflation at presenthas resulted in a reduction in the inflationassumption for 2013 from 2 per cent to 1per cent, which has affected the fair valueto the amount of SEK -232 million. Thetotal change in valuation during the yearwas SEK -262 million, which is equivalentto a fall of 0.3 per cent (increase of0.9). The average cost of capital was 8.6per cent (8.5) and the average yield requirementwas 6.4 per cent (6.4).The yield requirement and cost ofcapital for each region are presented inthe graph on page 40.AKAdEmISKA HuS 2012FINANCIAL POSITION: PROPERTY VALUATION39EXTERNAL VALUATIONA selection of the properties is alsovalued each year by external valuationcompanies to assure the internal valuationmodel. Certain development propertieswith income and costs that aredifficult to estimate are also valuedexternally. The external valuations in2012 were made by DTZ as a benchmarkfor the internal cash flow valuations.DTZ’s valuers are authorised by theSwedish Society of Real Estate Economics.The external valuations carried outtion. Expansion reserves, SEK 940 million(2 per cent) were valued using locationprices for building rights with a deductionfor development costs. In some cases,where the planning conditions for newconstruction are unclear, the land valueswere used to set the fair value. SEK 1,607million (3 per cent) comprises developmentproperties with uncertain futurecash flows as well as the few residentialproperties. These have been valued individuallyusing the valuation method thatwas most appropriate.The value of investment propertiesincludes new construction in progressamounting to SEK 4,006 million (2,181),which has also been valued using theinternal cash flow valuation.The cash flow comprises each valuationproperty’s income and expenses, i.e.the net operating income. The calculationof the rental payments is based oncurrent leases. If the rent level at the endof the lease is considered to be on marketterms, it has been assumed the lease canbe extended subject to the same termsand conditions. Otherwise, the rentshave been adjusted to bring them in linewith the market.Cash flow for operating costs is basedon budget and forecasts. Property administrationcosts have been assessedbased on the average level of costs withinAkademiska Hus and maintenance costshave been assessed based on actual costsand experience from comparable propertiesas well as key maintenance figuresfor the industry.confirmed the reliability of the internalvaluation model.VA LUATION METHODSEK 52,130 million (95 per cent) of theassessed fair value has been confirmedby means of an internal cash flow valua-VALUATION ASSUMPTIONSdivision into town, city, location27 towns, cities, locationsSpecial adaptation/type of premiseslaboratory premises/non-laboratory premiseslease term> 10 years> 6 years=< 6 yearscalculation period10 yearsInflation assumption year 1 1.0%Inflation assumption years 2–10 2.0%Vacant space Actual or 5%deduction for stamp duty 4.25%Property administration SEK 75/m 2Operating costsActual + inflationmaintenance costs, non-laboratory premises SEK 70/m 2

40AKAdEmISKA HuS 2012FINANCIAL POSITION: PROPERTY VALUATIONTOTAL YIELD%20100-10AH 2008SFI 2008YieldAH 2009SFI 2009Change in valueAH 2010SFI 2010AH 2011SFI 2011AH 2012SFI 2012PROPERTY VALUESEK m KSEK/m 260,00050,00040,00030,00020,00010,000020082009Fair value, SEK mFair value, SEK/m 2201020110201218,00015,00012,0009,0006,0003,000YIELD REQUIREMENT ANDCOST OF CAPITAL% per region1086420Southern RegionWestern RegionEastern RegionUppsala RegionStockholm RegionNorthern RegionAH = Akademiska Hus SFI = Swedish Property IndexAH 2007SFI 2007AH 2008SFI 2008AH 2009SFI 2009AH 2010SFI 2010AH 2011SFI 2011Cost of capitalYield requirementCost of capital, averageYield requirement, averageYIELD REQUIREMENT% per town and locationCOST OF CAPITAL% per town and locationYIELD REQUIREMENT AND COST OF CAPITAL%101010987659876598767.97.18.76.68.66.48.56.48.66.44Stockholminner cityGothenburginner cityLundUppsalaLinköpingUmeå4Stockholminner cityGothenburginner cityLundUppsalaLinköpingUmeå5200820092010Cost of capital, %Yield requirement, %20112012Lowest: lease period: = >10 years. Premisescategory: non-installation-intensive premisesHighest: lease period: = 10 years. Premisescategory: non-installation-intensive premisesHighest: lease period: =

Key Building, Linköping University

42AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONSConstruction operationsFocus on Stockholm and UppsalaPROJECT PLANNING PROCESSNEEDSANALYSISOperationsNeed for premisesLiaisonPREMISESProperty ownerrequirementsQuality, physicalenvironment, workingenvironmentDOCUMENTATIONFROM EARLY PHASESINVESTIGATION PHASEPLANNING PROCESSPLANNING PHASEPRELIMINARYSTUDYSite investigationInvestigation outlineGeoengineering surveyCost estimate+/– 20%CONSTRUCTIONPROGRAMMEProgramme outlineRequirement specificationswith consequence analysesRoom Function programmeSYSTEM PHASEPlansTechnical systemsDimensioningprinciplesDETAILED PLANNINGDetailed studiesDrawingsDescriptionsENQUIRYDOCUMENTATIONCONSTRUCTIONPROGRAMMEProgramme outlineTechnical requirementspecificationCost estimate+/– 15%SYSTEM DOCUMENTATIONPlanning solutionsTechnical systemsJustificationsOpportunitiesLimitationsSystem calculation+/– 10%CONSTRUCTIONDOCUMENTSDrawingsAdministrative regulations etc.Additional informationOther Akademiska HusrequirementsConstruction documentcalculation +/– 5%The project portfolioamounts to SEK 26 billion.The focus is on Stockholmand uppsala with a numberof major new constructionprojects.PLANNING PROCESSAT AKADEMISKA HUSDetails of operations, floor space requirements,liaison requirements, environmental/sustainabilityconsiderations etc. formthe basis for the planning process.During the enquiry phase, requirementsare formulated and presented whilstthe planning phase results in solutions.INVESTIGATION PHASEThe project and its prerequisites are investigated.Needs are reformulated intorequirements and consequences in aconstruction programme.PLANNING PHASEThe main design of the building and thetechnical system solutions are processedin the system phase.The detailed planning phase focuseson dimensioning and completed studiesas well as co-ordination of technicalsolutions. Detailed planning results inmodels, drawings and descriptions,which together make up the constructiondrawings.Complete information about theAkademiska Hus planning process isavailable at ‘Planning guidelines’(akademiskahus.se).NEWS 2012Construction information modelling haschanged the construction industry inrecent years and continues to drivedevelopment in the industry forward at arapid rate. With the aid of constructioninformation modelling, a digital model ofa building can be created that includes allthe relevant information in a constructionproject. The three-dimensional modelvisualises the design and functionality,predicts costs, avoids collisions andanalyses the climate and performance.All this is done long before the first brickis laid.

AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONS43DECIDED PROJECTS 31-12-2012 >SEK 50 MTotalinvestment,SEK mAnnualrent,SEK mProject nameLocationNew construction/redevelopmentCustomerLease,yearsBiomedicum Stockholm new construction 3,450 Karolinska Institute 20 207Veterinary and domestic Animal centre uppsala new construction 1,463 Swedish university of Agricultural Sciences 20 106Royal college of musicStockholmnew construction andredevelopment834 Royal college of music 20 44Skandion clinic uppsala new construction 765local Authority Association for AdvancedRadiation Therapy25 46niagara malmö new construction 745 malmö university 10 52Animal Building Stockholm new construction 666 Karolinska Institute 20 80HVc nord uppsala new construction 659 Swedish university of Agricultural Sciences 20 47Hall Solna new construction 510 Karolinska Institute 25 37School of Architecture & Royal Instituteof Technology campus EntranceStockholmnew construction andredevelopment436 Royal Institute of Technology 15 29luX lund new construction 432 lund university 10 32KISP Gamma Solna new construction 363 Karolinska Institute 15 27V Buildinglundnew construction andredevelopment303 lund university 10 26Student Building Stockholm new construction 212 Stockholm university 10 15IcT School Kista Redevelopment 204 Royal Institute of Technology 10 21materials Science Stockholm Redevelopment 197 Royal Institute of Technology 10 26ultuna campus uppsala Redevelopment 194 Swedish university of Agricultural Sciences 20 8Bmc Scilife uppsala new construction 170 uppsala university 10 5Swedish School of Sport andHealth SciencesStockholm new construction 161Swedish School of Sport and HealthSciences20 21Red cross Stockholm Redevelopment 157 Royal Institute of Technology 10 18Forensic medicine Gothenburg new construction 132 national Board of Forensic medicine + VGR 20 10Wallenberg Animal HouseSolnanew construction andredevelopment129 Karolinska Institute 10 21civil Engineering BuildingStockholmnew construction andredevelopment111 Royal Institute of Technology 11 21Forestry Buildingumeånew construction andredevelopment97 Swedish university of Agricultural Sciences 10 8Swerea Kimab Electrum 3 Stockholm Redevelopment 96 Swerea Kimab 14 17Bmc Energy Optimisation uppsala Redevelopment 75 uppsala university 20 7climate project Huddinge Redevelopment 68 Karolinska Institute 1 62manillaskolan Stockholm Redevelopment 66national Agency for Special needs Educationand Schools6 19district cooling, Ångström – Bmc uppsala new construction 66 uppsala university 10 6disaster medicine centre linköping new construction 59 linköping university 10 6ultuna central Supply uppsala new construction 59 Swedish university of Agricultural Sciences 20 15Education Studios Stockholm Redevelopment 57 Stockholm university 10 3Engine laboratory lund Redevelopment 54 lund university 10 12Edenlundnew construction andredevelopment52 lund university 10 9Translational medicine centre linköping new construction 50 linköping university 10 5During the year, instructions were producedgoverning how construction informationmodelling projects are to behandled efficiently.Akademiska Hus and four other stateownedcompanies have agreed to collaborateto promote the development and useof construction information modelling.See www.openbim.se.PROJECTS 2012During 2012, the total project portfolioincreased further and at year-endtotalled SEK 26.1 billion (22.6). Apartfrom investments in properties, theinvestment portfolio includes project-related maintenance. The differentinvestments are categorised as decided,planned and concept.• Decided projects are projects where theproject framework has been set using adelegation procedure, SEK 13.6 billion(9.0).• Planned projects are projects with aninquiry or planning framework for intermediateproject decisions when adecision regarding a project frameworkhas not yet been reached or some formof arrangement or agreement existsbetween the Company and the tenant,SEK 8.6 billion (10.8).• Concept projects are projects which,following a discussion with the customerand/or an analysis by the Company, areconsidered probable within a five-yearperiod but which are considered uncertainin terms of scope and time,SEK 3.9 billion (2.8).During 2012, investments in propertiesand new construction in progressamounted to SEK 2,908 million (2,254).The project portfolio for the comingyears reveals a distinct focus on Stockholmand Uppsala with a number oflarge, new construction projects.

44AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONSCOMPLETED PROJECTS 31-12-2012 >SEK 50 MProject nameLocationNew construction/redevelopmentTotalinvestment,SEK m CustomerLease,yearsAnnualrentBiocentre uppsala new construction 526Swedish university of AgriculturalSciences20 42Widerströmska Building Solna new construction 440 Karolinska Institute 10 34Soil, Water and Environment centre uppsala new construction 301Swedish School of Sport and HealthSciencesStockholmnew construction andredevelopment161Swedish university of AgriculturalSciencesSwedish School of Sport andHealth Sciences20 2520 21mathematics Annex lund Redevelopment 103 lund university 10 8chemistry Stockholm Redevelopment 73 Royal Institute of Technology 10 9Three-quarters of the total projectframework are attributable to Stockholmand Uppsala. The Southern Region andthe Western Region also have extensiveproject portfolios. The increase in thetotal project portfolio (SEK 3.2 billion)for the year is largely attributable to fourmajor projects, the scope of which hasexpanded. These are Albano in Stockholm,which has increased fromSEK 3,000 million to SEK 3,700 million,Ångström Stage IV in Uppsala, whichhas increased from SEK 640 millionto SEK 1,100 million, the Royal Collegeof Music, which has increased fromSEK 460 million to SEK 834 million, andUadm in Uppsala, which has increasedfrom SEK 580 million to SEK 766 million.The largest additional project during theyear is the Examination Centre inUppsala, totalling SEK 199 million. Anumber of smaller concept projects werealso added during the year.The largest decided projects are:• Biomedicum in Solna for the KarolinskaInstitute totalling SEK 3,450 million.See project description on page 45.• The Veterinary and Domestic AnimalCentre (VHC) in Uppsala, totallingSEK 1,463 million. VHC will become acentre for veterinary medicine anddomestic animal science. It will be theonly university animal hospital inSweden and will be the foremost researchcentre in Europe in veterinarymedicine and domestic animal sciencewith space for 600 employees and 1,000students in a compact, creative environment.The project comprises sixintegrated buildings housing premisesfor animal care for large and smallanimals as well as education and research.• The Royal College of Music in Stockholm,totalling SEK 834 million. See projectdescription on page 46.• The Skandion Clinic for Uppsala University,totalling SEK 765 million. Seeproject description on page 47• Niagara in Malmö, totalling SEK 745million. With Niagara, Malmö Universityis seeking to concentrate its operationsat Universitetsholmen and createnew, purpose-built premises for theFaculty of Culture and Society and theFaculty of Technology and Society.Niagara comprises three buildings, five,seven and 11 storeys high respectively.Together, they form their own blockand act as a gateway to the Universitycampus.The largest planned projects are:• Albano in Stockholm, totallingSEK 3,700 million. The Albano areaassures future development in the areabetween the Royal Institute of Technologyand Frescati. With its strategiclocation between Stockholm University,the Royal Institute of Technology andthe Karolinska Institute, Albano is animportant site for expansion in highereducation. Albano is particularly strategicfor Stockholm University, wherethe expansion potential on the presentFrescati Campus is limited. Due to itsgeographical location, Albano has theprerequisites for becoming a hub inwhat will be known as Science City. Theplanning of Albano as a new meetingpoint for research and development hascommenced. Albano will primarilyhouse university operations but willalso have accommodation for studentsand visiting researchers. AkademiskaHus and Stockholm University havejoined forces to design the vision forAlbano as an environment that is aliveand a strong meeting point with adiverse range of operations that worktogether to foster mutual support,development and inspiration.• Ångström Stage IV for Uppsala University.The project is worth a total ofSEK 1,100 million and is made up ofnew construction comprising 35,000square metres gross area and redevelopmentof 5,000 square metres. Thepremises are intended for the Departmentof Information Technology andcomprise teaching facilities and alecture theatre for 300 people.• Uadm, totalling SEK 766 million forUppsala University. See project descriptionon page 47.IMPACT OFTHE PROJECT PORTFOLIOThe large Akademiska Hus project portfoliowill have a major influence on theCompany as the projects are graduallycompleted. The proportion of additionalfloor space is estimated at approximately440,000 square metres, of which 97 percent is at universities and colleges. Themarket share is then expected to rise byapproximately three percentage points to66 per cent. The majority of larger newconstruction projects have long leasesand once completed, the project portfoliois expected to increase the average leaseterm to 7.7 years compared to 5.2 yearsfor existing properties. The project portfoliowill result in an increase in rentalrevenue of approximately SEK 2.1 billion.

AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONS45Project presentationsBiomedicum SolnaTogether with the Karolinska Institute, Akademiska Hus is developingresearch environments of the future. Biomedicum is amulti-billion investment in one of the largest medical researchfacilities in Europe and will be the Karolinska Institute’s ultramodernenvironment for medical research. A unique meetingpoint will be created for research close to New Karolinska Solna,the new university hospital. With floor space of 76,000 squaremetres, Biomedicum will be one of the largest medical researchfacilities in Europe. Biomedicum will be part of Stockholm Life inHaga staden as a centre in the region’s major Life Science initiative.The Karolinska Institute in Solna is one of the world’s leadinguniversities in the medical field. Biomedicum will make it possiblefor the first time to bring together all experimental research atthe Karolinska Institute under the same roof with space foraround 1,500 researchers. By bringing together the work beingconducted at different departments, conditions will be createdfor interdisciplinary research and collaboration.Biomedicum will largely comprise laboratories but will alsoinclude offices and conference facilities. There will be a considerableemphasis on creating a flexible working environment with alarge number of bright, easily accessible meeting places on severallevels in the building.Biomedicum will be located beside the new, spectacular KarolinskaInstitute Hall and will be adjacent to the new UniversityHospital. The large, centrally located atrium will be a naturalhub and meeting point for the Karolinska InstituteBIOMEDICUM, SOLNAWhat: new medical research facility.Status: decided project. Project due to commencein 2013 with completion scheduled for 2018.Investment: SEK 3,450 million.LUX LundPhysiological Zoology is about to be transformed into along-awaited meeting point, known as LUX, for humanities andtheology (HT). The HT Faculties will be brought together whenall the operating areas are housed in the new LUX complex andthe adjacent Centre for Language and Literature. Together theywill create a joint HT Centre that will play an important role inan emerging knowledge area. LUX and the Centre for Languageand Literature will become an important meeting point for students,teaching staff and researchers at the HT Faculties, whichfor the first time can bring together its activities in the sameplace. Hopefully, in time this inter-faculty research and educationenvironment will create a new scientific landscape, whereall combinations and meetings are possible.The focus in the project will be on stimulating study environments,lecture theatres, library and cafeteria. There will also be aconsiderable emphasis on creating effective workplaces, open areas,distinctive entrance areas and natural meeting points. Thenew premises will feel open and encourage people to mix. At thesame time, teachers will be provided with sheltered workingplaces, offering an opportunity to work in peace and with a feelingof integrity. Researchers and students will move between twoworlds within LUX, from the old Zoology Building to the new,ultramodern extension.The building will be environmentally certified according tothe silver level in the Swedish Miljöbyggnad classification systemand will be equipped with energy-smart technical solutions.In total, LUX will comprise 7,000 square metres of new constructionand the existing buildings, totalling 11,000 square metres, will becompletely refurbished. Completion is scheduled for summer 2014.LUX, LUNDWhat: new campus for humanities and theology.Status: decided project. construction commencedin november 2011 and completion is scheduled forApril 2014.Investment: SEK 432 million.

46AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONSROYAL COLLEGE OF MUSIC, STOCKHOLMWhat: new construction for the Royal college ofmusic on Valhallavägen.Status: decided project. construction will commencein 2013 and completion is scheduled for 2016.Investment: Approximately SEK 800 million.Royal College of Music, StockholmPlanning work is taking place for a large, new building for theRoyal College of Music that will result in a blend of innovativearchitecture and listed buildings – a former stables and ridingschool. The Royal College of Music will thus contribute to thepreservation of a ‘cultural institution belt’ in the area.The project involves the realisation of a cutting-edge academicenvironment in Stockholm. The new buildings will act as a new,central meeting place for music in the capital. It will include fournew concert venues, varying in size and designed for differenttypes of music. Two completely new buildings will be locatedwith the facade facing Valhallavägen, one housing teachingpremises and a large concert hall. The former stables will becomea library and inside the old riding school a glass-walled concertvenue will be constructed.In addition to the Royal College of Music, Akademiska Huswill collaborate with the City of Stockholm, the County Counciland other stakeholders to bring about a total solution for theentire area, including 350 new apartments.A decision by the Land and Environmental Court of Appealwill mean that the appealed detailed plan for the block, on thecorner of Valhallavägen and Lidingövägen, can be adopted andtake legal effect. By doing so, the already well-advanced constructionplanning process can be resumed and the aim is for theproject to be completed in 2016.Forensic Medicine in GothenburgAkademiska Hus is currently in the process of completing new,ultramodern premises for the National Board of Forensic Medicinein Gothenburg. The new building, at Medicinareberget, close toSahlgrenska University Hospital, will house autopsy facilities,laboratories, a morgue, a chapel of rest, examination rooms,archives, staff areas and offices. The aim is to create the mostmodern and most efficient forensic medicine facility in Sweden.An important aspect of the overall aim is environmental sustainability.Akademiska Hus has worked intensively to optimiseenergy use, the indoor environment and materials in the building.The framework of the building is characterised by a moisturerepellentdesign and largely is constructed using inorganicmaterials.“It has been a particular challenge to build in an environmentallyfriendly way for a field of science that uses a great deal ofenergy. As a forensic medicine department, the building housesrefrigeration units and advanced autopsy environments withventilation requirements that go beyond the norm,” says AkademiskaHus project manager Lennart Westling.Through underground storage, complete with 26 boreholes,the building has become self-sufficient in terms of heating andcooling. The facility produces 644 MWh of heating and coolingeach year, which generates a surplus that can be used for theneighbouring building, the Department of Zoology. The buildingis also one of the first in Gothenburg to be environmentally certifiedaccording to the silver level in the Swedish Miljöbyggnadclassification system.FORENSIC MEDICINE IN GOTHENBURGWhat: new construction, comprising 2,500 squaremetres for the national Board of Forensic medicine,medicinareberget, Gothenburg.Status: decided project. construction commenced in2011 and completion is scheduled for February 2013.Investering: SEK 132 million, of which SEK 80 million is for Forensicmedicine. The remainder of the investment refers to the office areas.

AKAdEmISKA HuS 2012FINANCIAL POSITION: CONSTRUCTION OPERATIONS47Skandion Clinic, UppsalaThe Skandion Clinic is a collaborative project involving sevencounty councils that each have a university hospital that offersadvanced cancer treatment. The project aims to construct thefirst clinic in the Nordic Region where radiotherapy using protonsis used to cure severe cancer. Instead of traditional radiotherapy,where x-rays or electron radiation are used, the treatmentat the Skandion Clinic takes place using protons. Themethod was developed in Uppsala over 50 years ago and will nowbe used for the first time on a large scale in the Nordic Region.The Skandion Clinic will become a national centre and will offercancer patients from throughout Sweden a unique form of radiotherapywith fewer side effects than traditional radiation of cancertumours. Research can also be conducted into the potentialimportance of proton treatment for several different forms ofcancer.The Skandion Clinic is located beside the University Hospitalin Uppsala. The building is a collaborative project in which AkademiskaHus and NCC are working closely with the seven countycouncils, which through the Joint Authority of County Councilsfor Radiation Therapy will be responsible for activities at theSkandion Clinic. The project comprises 13,500 square metresand the architect is LINK Arkitektur AB. The building is due tobe completed in summer 2014 and will be open for treatment inspring 2015.SKANDION CLINIC, UPPSALAWhat: clinic for cancer treatment using protons.Status: decided project. construction commencedin June 2011 and completion is scheduled for June2014.Investment: SEK 765 million.Uadm, UppsalaUppsala University needs new premises for University administrationon the Plantskolan block in the Blåsenhus area. The aimof the new building is to create functional, cohesive premisesthat promote a good working environment, which are readilyaccessible to employees, students and visitors and which are suitablefor people with functional disabilities. The Blåsenhus areaand the Plantskolan block are centrally located in Uppsala andextend mainly along Dag Hammarskölds väg. This is importantin terms of accessibility. An open, welcoming building contributesto integrating the area better into the urban environmentand with the surrounding listed buildings. The locationrequires a building with a high degree of architectural valuethat can enrich the urban landscape, with respect shown for thecultural and historical environment although at the same timerepresent the modern Uppsala University.The Danish firm of architects 3XN has produced a proposaland has developed it further. The outline that has been producedwill form the basis for the design and the continued detailedplanning process. At this early phase in the detailed planningprocess, the focus is very much on the size of the building, itslocation and its character. In the next phase, a great deal remainsto be done regarding the detailed design of the building based onthe framework adopted by the city authority. After the detailedplan has been adopted, the process can continue and constructioncan commence.UADM, UPPSALAWhat: An icon building for the university and newpremises for the Faculty of culture and Society andthe Faculty of Technology and Society.Status: Planned project. construction will commencein summer 2013 and completion is scheduledfor April 2015.Project area: The total area of the building is 25,300 square metres.Investment: SEK 766 million

48AKAdEmISKA HuS 2012FINANCIAL POSITION: FINANCINGFinancing2012 marked by the euro crisisDuring 2012, the Eurozone continued to experience major problems alongside a weakening in the outlook for global growth.The central banks have used both interest rates and various liquidity initiatives to support the financial system and realeconomy in order to gain time for political decisions to take effect. Both short-term and long-term interest rates hit record-lowlevels during the year.DEBT MATURITYSEK m20,00016,00012,0008,0004,0000201220172022202720322037Year2042Bonds worth SEK 1,330 millionwere issued during 2012. Wenow have SEK 3,200 millionin bond loans with terms of15–30 years.FINANCE MARKET DURING 20122012 was largely marked by the eurocrisis. Several countries have underlyingstructural problems with poor competitivenessand major budget deficits, whichhave led to a build-up of debt over manyyears. The banking sector has also beenmarked by undercapitalisation. The centralbanks have cut short-term interestrates and embarked on extraordinarymeasures to support the financial systemand real economy and to gain time for politicaldecisions to take effect. The ECBpresented a framework of various powerfulmeasures to increase liquidity supplyat advantageous interest rates and forbond purchases from heavily indebtedcountries. In total, the measures led toa reduction in risk premiums and a decreasein credit spreads. The lendingcosts for heavily indebted countries werethus limited and the pressure on the euroeased. The chairman of the ECB, MarioDraghi, indicated very clearly in Augustthat in principle the ECB had unlimitedcapacity to take greater steps to save theeuro. In addition to these measures, theECB cut the refi rate to 0.75 per cent. TheFederal Reserve has expressed an ambi-tion to keep interest rates low for a longperiod. These measures have proved effectiveand in the latter half of the year,there was greater risk propensity andgrowth on the stock markets. The financialcutbacks in many European countries,in combination with poor growth inother parts of the world, have contributedto long interest rates reaching record-lowlevels during the year.At the beginning of the year, Swedenshowed good growth with a relativelystable labour market. During 2011 and atthe beginning of 2012, the proportion ofkrona bonds held by foreign investors increased,resulting in a strengthening ofthe krona due to the inflow of currency.During the autumn, the picture changedwith a weakening in the Swedish economy,reflected in a weaker PurchasingManager index figures, economic indicatorsand balance of trade as well as adownwardly revised GNP. The strongkrona in a weak world economy graduallybegan to have an impeding effect onexports. The Swedish Central Bankreduced the repo rate during the yearfrom 1.75 per cent to 1.00 per cent.LIABILITY MANAGEMENTDURING THE YEARDuring the year, bond issues totallingSEK 1,330 million were implemented.Despite a fall in demand for very longbonds, bonds totalling SEK 830 millionwith term of 25–30 years could be issued.For Akademiska Hus, the Swedish kronamarket, in line with 2011, has been advantageousfor bond issues with longerterms. The reason for the issues hasmainly been that the financial system isstill considered very vulnerable to disruption.In the face of a continued uncertainsituation on the credit market, ithas been vital to ensure very long-termfinancing of the substantial investmentportfolio. The proportion of Swedishbonds in the bond portfolio has increasedsignificantly during the past two years.Bonds with terms of more than 15 yearshave a major impact on the average fixedinterest period and maturity and arehandled in a separate long-term bondportfolio. According to the mandate, thisportfolio is permitted to amount to amaximum of 30 per cent of the totalportfolio. At the year-end, it comprisedapproximately 15.5 per cent.BOND ISSUES DURING 2012AmountSEK 500 mSEK 330 mSEK 500 mTerm25 years30 years3 yearsFor a great deal of the year, the ECPmarket functioned as a very cost-effectivefinancing alternative. Towards the end ofthe year, however, a decline in interestwas noted with the result that loans fallingdue have not been extended. The continuedrestrictive approach to lendingadopted by the banking sector, coupledwith lower government rates, contributedto an increase in interest among companiesto issue bonds on the Swedish market.Even from an investor perspective, therewas greater interest in investment alternativesthat offered a good return andlimited risk in a situation where the stock

AKAdEmISKA HuS 2012FINANCIAL POSITION: FINANCING 49market appeared uncertain. Greater variationwas noted in the range of bondsthrough issuers, representing differentcredit risks. The issue volumes of corporatebonds increased by just over 30 percent and during the year 36 new issuerscame to the market, of which 24 werecompanies. Property companies in particularwere a new feature. Despite thefact that many of the companies lacked arating, bond issues with terms of 3–5years met with a positive response fromthe market.The average maturity, including thelong-term portfolio, was 6.9 years atyear-end (7.1). At year-end, 57 per cent(60) of the Akademiska Hus’s total financingwas derived from outsideSweden. The proportion of foreign financ -ing is being maintained due to the factthat short-term financing has takenplace exclusively on the ECP market. Thefixed interest period, excluding the longtermportfolio, ended the year at 3.2years (3.1).RENEWAL STRUCTURE FOR FIXED INTERESTPERIODS AND NET DEBT MATURITY AS OF31-12-2012YearFixed interest,SEK mMaturity,SEK m2013 9,288 4,1382014 1,095 1,7802015 1,950 4,6242016 1,250 2,4182017 400 02018 and later 6,759 8,763Total 20,741 21,723For further information see note 36.FINANCING OPERATIONS 2013Akademiska Hus’s view of future developmentson the financial markets formsthe basis, together with growth in theliability portfolio, for strategic decisionsregarding the fixed interest period andmaturity. The portfolio is highly diversifiedwith varying fixed interest periodsand financing raised at different times.Akademiska Hus’s assessment is thatuncertainty in the financial sector willpersist throughout 2013. Prolonged restrictivelending by the banking sector iscontributing to borrowers continuing tolook for financing outside the bankingsystem. The risk scenario in the futurewill comprise rising interest rates in linewith the recovery in the economy. Therisk propensity could increase and thusdemand for other types of assets, whichcould affect credit spreads. AkademiskaHus will continue to monitor and analysethe corporate bond market in Swedenand internationally.During 2013, the financing requirements,in addition to short-termre financing on the ECP market, willcomprise bonds falling due totallingSEK 1,800 million, the dividend and asubstantial project portfolio. Over thenext few years, the project portfolio willamount to SEK 26 billion, of which SEK22 billion is for projects that have beendecided are planned. The extensive longtermbond issues that Akademiska Husimplemented during 2011 and 2012 willcontinue to cover financing requirementsduring 2013. The liability portfoliois expected to increase by approximately25–30 per cent through to 2015. Net investmentsduring 2013 of approximatelySEK 4,200 million, and the proposeddividend of SEK 1,355 million, areexpected to be funded largely throughgood cash flow from property operations.FINANCING OPERATIONS– STRATEGIES AND OBJECTIVESAkademiska Hus carries on active liabilitymanagement where the strategy is toweigh up the financial risks against thedesired low financing cost. The Boardadopts the Finance Policy, which laysdown the long-term strategic orientation,allocation of responsibility, the Company’sapproach to financial risks and themandates that must be in place to handlesuch risks. The Financial Risk Plan forthe coming year is adopted in December.Apart from authorisations and mandatesfor financial risk management, it alsocontains an analysis of risks on thefinancial markets. Mandates are justifiedin the light of the risk scenario and existingexposure.The financing objectives are:• Use centralised financial managementto facilitate utilisation of economies ofscale and the efficient handling ofexposure to financial risks within theCompany.• Use the strong financial position andgood rating to remain within theframework of stated risk mandates andachieve as low financing cost as possible.• Via the public financing programmes,secure cost-effective financing on thefinancial markets that best takes intoaccount the credit rating.RISK MANAGEMENT‘Risk’ refers to a possible negative impactthat could arise due to future internal orexternal events. Exposure to financialrisks arises in conjunction with all financialoperations. Within the Treasury Department,work is ongoing to initially definefinancial risks and then identify andmap the risks to which the Company isexposed. Methods are being constantlydeveloped and refined to measure andanalyse the risk situation.It is important to state that the analysisalso focuses on identifying and utilisingthe opportunities that arise on themarket. Finally, what remains is to bedecided on each occasion is the approachthat should be adopted in the light of theprevailing situation. During 2011, achange was made in the portfolio structureas a result of the extensive bondissues with fixed interest periods andmaturities of over 15 years. As these areof a particular strategic nature, they arehandled in a separate portfolio, a longbond portfolio.RISK CONTROLOngoing work is being done to improvethe level of expertise, routines and internalcontrol. There is strict allocation ofresponsibility between the TreasuryDepartment and the back-office andmiddle office. Apart from accounting andadministration, the back-office checkscompliance with the mandates. The taskof developing and refining analyticalsupport and risk control is ongoing.RISKS AND FINANCIAL RISK MANAGEMENTFinancial risk Definition of risk exposure Risk limit according to the policyInterest riskThe risk of the company’s profit being affectedbecause of a change in interest rates.The interest risk should be handled within a fixed interest mandate.Refinancing riskThe risk that the cost is higher or financingpotential is limited when loans are due to berefinanced.diversification via different financing forms should be even and balanced.A maximum of 40 per cent of the total loan volume may fall due for renewalwithin a 12-month period. credit assurances should be sufficient.credit and counterpartyriskcurrencyexposure riskThe risk of a loss if a counter-party does notmeet its undertakings.A risk that exchange rate changes affect theIncome Statements and Balance Sheets.A limit for counter-party risks is based on the rating and the term of the commitment.ISdA agreements are always signed before derivative transactions arecarried out. For major commitments, cSA agreements should be sought.When financing in a foreign currency, the exchange rates must be eliminated.limited currency exposure in conjunction with electricity trading is accepted.

50AKAdEmISKA HuS 2012FINANCIAL POSITION: FINANCINGFIXED INTEREST MANDATEHandling the fixed interest period is centralto financing. The total liability portfoliois divided into four separate portfolioswith regard to fixed interest periodsin order to refine the basic portfolio thathas been assigned a fixed interest mandate.The fixed interest period chosen ateach point in time is based on the Company’srisk preferences and assessmentof the future interest rate trend. Interestderivatives are included in the calculationof the interest risk exposure.BASIC PORTFOLIOThe basic portfolio comprises the mainpart of the debt portfolio and is the partthat is assigned a fixed interest mandate.The mandate is expressed as a range forthe average fixed interest period in theportfolio. Interest risk exposures in theproperty portfolio in the form of interestrate-linked rents are handled within thisportfolio. At the beginning of 2013, theportfolio totalled SEK 15,000 million.During 2012, the mandate was 2.0–4.5years. In accordance with a decision bythe Board of Directors, it was changed for2013 to 2–5 years.LONG-TERM BOND PORTFOLIOThe reason for a separate, long-termbond portfolio is that the customaryrisk measurement for the fixed interestmandate (average fixed interest period)becomes skewed when the portfolio includesa small proportion of bonds withan extremely long fixed interest periodand maturity. However, bonds with aterm of over 15 years represent significantinterest risk exposure, which justifiesa separate mandate. The portfolio istherefore permitted to amount to a maximumof 30 per cent of the total portfolio.At year-end, long-term bonds amountingto SEK 3,155 million were issued, equivalentto 15.5 per cent of the total portfolio.SEASONAL PORTFOLIOThe size of the debt portfolio variesbecause of the incoming rent paymentseach quarter and an exchange of securityfor derivatives according to what aretermed CSA agreements. The portfoliocomprises short-term loans raised pendingrent payments and security granted.The aim is to avoid changes in the basicportfolio’s fixed interest because of thesevariations. The portfolio can amount to amaximum of the next rent payments tobe made plus security granted for derivatives.REAL INTEREST PORTFOLIOReal interest exposure represents possiblediversification in the debt portfolio andhelps the Group avoid being exposedexclusively to changes in nominal interestrates. The portfolio can amount to amaximum of five per cent of the interestbearingliabilities. At year-end, there wasno real interest exposure.MATURITY MANDATEThe Board adopts a maturity mandatewith the aim of limiting the refinancingrisk.Loans that fall due within a rolling 12-month period can amount to a maximumof 40 per cent of the total debt volume.Despite concern on the financing market,the ECP programme has been a verycost-effective alternative for a large partof the year. The strong seasonal patternin the cash flow, with quarterly rentalpayments, allows good forward planningin liquidity management. Bond issuesduring the year totalling SEK 1,330 millionconstituted a strategically important extensionof the maturity. The proportionof loans that fall due within 12 monthswas just 18.8 per cent at the year-end (15.1).PROPORTION OF LOANS THAT WILL FALLDUE WITHIN 12 MONTHS%504030201002006 2007 2008 2009 2010 2011 2012LIMIT SYSTEM FOR CREDITAND COUNTER-PARTY RISKSThe Company is exposed to credit andcounter-party risks when surplus liquidityis invested in financial assets and inconjunction with trading in derivatives.Exposure is handled through limits,which are related to the Company’s riskcapacity in the form of equity. The permittedexposure depends on the counterparty’srating (creditworthiness) as wellas the term of the commitment. Therating requirement must be satisfiedwith at least one rating institute. TheGroup’s policy is that standardised nettingagreements, known as ISDA agreements,should always be signed with a counterpartybefore uncleared derivative transactionstake place. For large commitments,agreements are always soughtwhere the parties undertake mutually tofurnish collateral in the form of liquidfunds or bonds for the underlying valuesin the outstanding derivatives accordingto CSA agreements. At year-end, therewere 23 ISDA agreements of which 12had CSA agreements. As a supplement,Credit Default Swaps (CDS) are used toa limited extent. See also Note 36.CURRENCY EXPOSURE RISKAs the Company’s operations are denominatedexclusively in Swedish kronor, thepolicy is that all currency exposure riskin conjunction with financing in foreigncurrency should be eliminated. All paymentflows that are attributable to theraising of loans are exchange-hedgedwith the aid of currency futures andcurrency interest swap agreements.Currency exposure in euro for electricityis handled within a separate mandateaccording to the Electricity TradingPolicy.FINANCING FORMS AND RATINGThe Company has efficient short-termand long-term financing programmes,both domestic and international. In themidst of the uncertainty that has continuedto characterise the credit market, thevalue of having highly diversified financingsources has been particularly obvious.It also requires that the Company focuseson those markets that price the Company’srating best. In addition to the financingprogrammes, there were bank overdraftfacilities of SEK 3,500 million at yearend,of which SEK 1,500 million was unconfirmed.The need for back-up facilitiesvia a bank must be put in relation tothe maturity that exists via bond financing.Issues during 2012 of SEK 1,330 million,of which SEK 830 million has termsof 25–30 years, constitute a valuable extensionof the maturity. Through the bondissues, the Company becomes less proneto movements on the banking market.Since 1996, Akademiska Hus has hada long-term rating from Standard andPoor’s of AA with a stable outlook anda short-term rating of A1+/K1. In the currentsituation, with credit rating in the financesector being called into question,this stability, with the same high rating,is a crucial strength factor.MATERIAL CONTRACTUAL TERMSAND CONDITIONS (COVENANTS)The general terms and conditions for theEMTN and MTN programmes include aclause which states that if the Swedishgovernment ceases, directly or indirectly,to hold more than 50 per cent of theshares, equivalent to more than 50 percent of the shares and more than 50 percent of the votes, the loans and anyinterest shall fall due for payment immediately.The contractual terms and conditionsfor the short-term financing programmesdo not include any equivalentundertaking. Ever since the programmeswere established, the Company’s policyhas been not to accept any terms andconditions that require, for example, thata certain rating, equity ratio or interestcoverage ratio be maintained.

AKAdEmISKA HuS 2012FINANCIAL POSITION: FINANCING51FINANCING PROGRAMMES AND RATINGRatingStandard & Poor'sFramework31-12-2012Utilised,nominal 31-12-2012FinancialcovenantsBank (confirmed) SEK 2,000 m SEK 325 m —Bank (unconfirmed) SEK 1,500 m — —commercial paper A1+/K1 SEK 4,000 m — —EcP (Euro commercial Paper) A1+ EuR 600 m EuR 239 m —mTn (medium Term note)* AA SEK 8,000 m SEK 2,320 m Owner clauseEmTn (Euro medium Term note) AA/A1+ EuR 2,000 m EuR 1,608 m Owner clause* not updated since 2009.FINANCING COSTThe net interest income/expense wasSEK -682 million (-452), following a deductionfor capitalised interest expenseof SEK 107 million (73). This is equivalentto an interest cost, including changesin the value of financial derivatives, of4.21 per cent (2.99) during the period.According to earlier computationprinciples, with period allocation ofclosed derivatives, excluding the valuationof current instruments, the financingcost rose to 3.38 per cent from 3.07per cent. The decrease in value in financialderivatives increased the cost of capitalby 1.06 percentage points. The underlyingfinancing cost has increased as thelong-term bond issues have taken place ata fixed rate of interest. The aim has beento assure long-term financing in the leadupto future investments in a situationwhere risk premiums in financial marketsare still considered high. Long-terminterest rates are at an historically lowlevel and there has been good reason forfinancing to take place at a fixed longtermrate of interest. The interest coverageratio, which is calculated on the impacton cash flow of net interest income/expense, was a reassuring 672 per cent (716).CAPITALISED INTEREST COSTSThe part of the investment that refers tointerest expense during the investmentperiod in conjunction with major redevelopmentand new construction thathas been in progress over a significantperiod of time, is capitalised as an asset inthe value of the project and is thus not includedin net financial income and expense.During 2012, capitalised interest amountedto SEK 107 million (73).SENSITIVITY ANALYSIS,LIABILITY PORTFOLIOThe interest-bearing liability is constantlyexposed to changes in interestrates on the market. The analysis of thesensitivity of the liability portfolio can bedivided into two parts:• Changes in the value of interest derivatives(current values).• Cash flow effects (net interest incomeand expense) during a calendar year foritems with a short fixed interest period,which are given a new short-term rateof interest for the remainder of theyear.As the fixed interest period is diversifiedand, according to the current risk mandate,a minimum of two years on average,the variations in the interest cost will beless than if the fixed interest period hadbeen very short, three months for example.The fixed interest period comprisesthe underlying fixed interest of thefinancing supplemented by interestderivatives. The purpose of the interestderivatives is to facilitate a change in thefixed interest period in the liability portfolioover and above what is achieveddirectly in the financing. On page 54,there is an analysis of the impact on theresult of an increase in interest of onepercentage point. The calculations arebased on an unchanged liability volume.FINANCING COST, COMPOSITION 2008 2009 2010 2011 2012Financing costs for loans 4.69 1.70 1.18 2.75 2.72net interest income/expense, interest swaps 0.00 0.60 0.96 0.44 0.40charges 0.02 0.02 0.03 0.03 0.03Financing costs, excluding IFRS 4.71 2.32 2.17 3.22 3.15changes in value, financial instruments accordingto IFRS-1.25 1.31 -0.33 -0.23 1.06TOTAL FINANCING COST 3.46 3.63 1.84 2.99 4.21KEY FIGURES 2008 2009 2010 2011 2012Interest-bearing net loan debt, SEK m 15,090 15,531 15,726 16,778 18,528Interest-bearing liabilities 19,414 18,781 18,973 24,693 24,212Interest coverage, % 369 866 741 716 672Fixed interest, basic portfolio, annual average 1.7 3.0 3.0 3.0 3.3Fixed interest, long-term portfolio, annual average — — — 28.5 28.0maturity, annual average, years 3.9 3.2 3.8 5.7 6.8Dec-11COMPARISONS, DIFFERENTCALCULATIONS OF THE INTEREST COST%65432102005 2006 2007 2008 2009 2010 2011 2012Periodic annual equivalent rateIFRS, annual equivalent rateDec-07Dec-08Dec-09Dec-10Dec-11

52AKAdEmISKA HuS 2012FINANCIAL POSITION: RISKS AND SENSITIVITY ANALYSISRisks and sensitivity analysisStrong demand reduces the riskThe geographically diversified portfolio offers a good risk spread that can benefit from developmenton strong regional markets, including university and college towns and cities.STRATEGIC RISK – OWNING ANDMANAGING PROPERTIESAkademiska Hus is affected by the government’seducation policy but also bygrowth in the Swedish economy, and inparticular the situation on the labourmarket.Major investments in knowledge environmentshave shaped Akademiska Huscampuses. In this respect, the propertyportfolio has a strategic risk. Campuseshave a specific purpose and are not in abroad sense general. Purchases and salesof properties take place to deal with thestrategic risk in the property portfolio.RISK MANAGEMENT – A MATTERFOR THE BOARDThe Board of Directors has routines andprocesses for examining how the organisationhandles the risks that can arise inbusiness operations. This means thatrisks can be identified, analysed, assessedand handled effectively. TheBoard decides each year on long-termdevelopment, the strategic plan, the competitivesituation and total risk exposure.The most important policy areas are theInvestment Policy, Environmental Policy,Ethics Policy, Finance Policy, Electricityand Trading Policy.The most important risk areas for theBoard are:• Property valuation• Projects• FinancingMajor disputes are reported on an ongoingbasis to the Board of Directors.An Audit Committee assists the Boardin matters related to financial risk, reportingand control, property valuation,application of accounting principles andexternal audits, and assists the owner inthe selection of auditors. The Audit Committeeis also responsible for preparingmatters concerning the application of theCorporate Governance Code. In addition,there is a Finance Committee, whichfollows financial risks in more detail andprepares the means to handle these risks.The Board’s risk management process isdescribed in more detail in the CorporateGovernance Report.During 2013, an internal auditor willbe employed. The internal auditor will becommissioned by the Board to conductan independent audit of the Company’sinternal governance and control.OPERATING RISKSThe term ‘operating risk’ refers mainly tothe risk of financial consequences andconsequences related to trust whichensue from shortcomings in internalroutines and systems. The handling ofoperating risks is aimed at identifying,assessing, monitoring and handling thoserisks. The risks are assessed and handledbased on their expected consequencesand the degree of probability that theycould occur. Internal directives andguidelines form the basis for risk managementwithin Akademiska Hus. Corporateculture is critical in ensuring thatinternal controls are a normal and necessaryoperating prerequisite. The operatingrisks can be handled through a standardised,process-oriented approach thatincludes control points. The adoptedapproach is revised continuously as partof the quality assurance process.The operating risks can be divided into:• Administrative – insufficient or unsuitableroutines, lack of controls and reporting,human error, lack of expertise,an unclear allocation of responsibility• IT – incorrect data systems, informationsecurity, stoppage risks• Legal – sub-standard documentation,incorrect agreementsThe Company and its assets are insuredin line with the assessed insurance requirements.CHANGES IN VALUEReporting according to IFRS means thatthe properties are recorded at fair value inthe Balance Sheet and the changes in valueaffect the Income Statement.HandlingThe value of the properties is determinedby general market factors such as risk premiums,availability and demand on theproperty market and specific changes inthe properties. The value of the propertiesis largely dependent on the expected netoperating profit as well as the market’syield requirements and cost of capital requirements.Changes in value are unrealised profitand do not affect the cash flow.ENVIRONMENTAL RISKSThe probability of accidents and operationalshortcomings and their impact on the environment.HandlingAccording to the Environmental Code, environ -mental responsibility is handled in a structured,co-ordinated way, among other thingsby satisfying the environmental certificationstipulations laid down in ISO 14001:2004.Within Akademiska Hus, environmental impactis identified and the environmental workis planned following documented environmentalenquiries. The results are collated andevaluated in order to identify the most significantenvironmental aspects.VACANT SPACEThe risk of reduced rental revenue due toa downturn in demand and terminationof leases.HandlingActivity plans are prepared for all vacantspace. Long leases with universities andcolleges mean an average term of 5.2 years.Special buildings for research and developmentfrequently have a lease of 10, 15 or 20years, during which the whole of the investmentis repaid. The possibility of a leasebeing renewed is considered to be higher forthis type of property. Otherwise generalpremises are sought that can be easilychanged for alternative use. Lease expirydates are spread out over time.MAINTENANCERisk of an impact on profit.HandlingMaintenance costs are to a large extent variableand can be reduced or postponed to meet afall in profit or vacant space. There is amaintenance plan for each individualbuilding. Investments, i.e. value-enhancingmeasures, are only made if there is a leasewith a tenant that justifies the investmenton business grounds.

AKAdEmISKA HuS 2012FINANCIAL POSITION: RISKS AND SENSITIVITY ANALYSIS53FINANCIAL RISKSInvestments in properties are capital intensive.Access to financing is required as a complementto internally generated cash flow.Changes in the financing cost have a considerableeffect on the investment calculation andprofit.HandlingAkademiska Hus has a low financial risk becauseof its secure equity ratio. The high interestcoverage ratio is a measure of the Company’sgood financial capacity. Financingoperations are run with well-adapted strategies,striking a balance between financialrisks and a low financing cost. The FinancePolicy adopted by the Board presents the longtermstrategic orientation, the allocation ofresponsibility, the risk approach to financingrisks and what mandates should be in place tohandle these risks. The plan for handlingfinancial risks includes authorisations andmandates as well as concrete plans for financingoperations. The handling of the liabilityportfolio interest risk takes place within theframework of a separate fixed interest mandate.The average fixed interest period at theyear-end was 4.2 years, which is why fluctuationsin market interest rates do not have animmediate impact on the liability portfolio.OPERATING COSTSA profit risk in addition to an increase inrental revenue and the fact that in part thecosts remain even if the correspondingrevenue does not exist.HandlingOperating costs are regarded in part asfixed costs. Media provision accounts forthe majority of the total operating costsand is difficult to influence in the shortterm. In the past few years, except for 2011and 2012, media provision has increasedmore rapidly than rents and this has had anegative impact on profit and the properties’market value. Akademiska Hus passeson 40 per cent of the costs to customersfor media provision in the form of a rentsupple ment. The risk is shared with thecustomer, which is a common incentive tosave energy.RISK MATRIXIMPACT543211 2 3 4 5PROBABILITYRENTAL INCOMERisk of a fall in rental revenue due to customerswith poor payment capacity and/orterminated leases due to a fall in demand.HandlingRents from government-controlled customersaccount for 90 per cent of the rental revenueand do not represent a credit risk.ELECTRICITY PRICE RISKProfit risk due to changes in the market priceof electricity.HandlingPhysical electricity is purchased on the electricityexchange Nord Pool Spot. Each day, anorder is placed for the electricity requirementsfor the forthcoming 24 hours. Expected futureelectricity use is hedged using financialfutures based on electricity. Price hedging isconducted against the financial electricity exchangeNasdaq OMX, based on a formulatedstrategy decided by the Board of AkademiskaHus. The strategy is based on hedging electricityrequirements for future periods at predeterminedtimes. Price hedging commencesthree years before and continues through tothe point of use. When the electricity is used,the price is normally hedged up to 80–90 percent. As of the year-end, 78 per cent of theprice of estimated electricity use for 2013 hadbeen hedged (57 per cent for 2014 and 29 percent for 2015). Using this strategy, fluctuationsin Akademiska Hus electricity costs are limitedfrom one year to another, achieving good predictabilityregarding future electricity costs.To make use of fluctuations in the market,a deviation mandate, which carries the rightto deviate from the strategy to a limited extent.Both risks and profit from possible deviationsare measured and reported togetherwith other electricity costs.To minimise counter-party risks in electricitytrading, Akademiska Hus is what istermed a clearing customer on the electricityexchanges Nord Pool Spot and Nasdaq OMX.This means that Akademiska Hus’s only counterpartiesin electricity trading are the actualelectricity exchanges. Akademiska Hus paysthe electricity exchanges each day for physicalelectricity and financial settlement of electricityfutures.Because electricity is hedged in euro, acurrency exposure risk arises, which is handledthrough a price hedging strategy for currencywithin the time horizon laid down in the ElectricityPolicy. The expected currency exposurefrom future electricity purchases is hedgedquarterly using exchange futures.An external portfolio management companyis used for both physical electricity purchasesas well as financial price hedging. The portfoliomanagement company also assists withadvice and recommendations regarding pricehedging of electricity.

54AKAdEmISKA HuS 2012FINANCIAL POSITION: RISKS AND SENSITIVITY ANALYSISSENSITIVITY ANALYSISThe sensitivity analysis shows how thepre-tax profit, return on equity andassessed fair value would be affected inthe event of changes in different variables.The analysis shows the impact on anannual basis at full effect.Changes in the cost of capital or yieldrequirement are factors that affect thefair value most. The impact on profit ofa change in value, however, would notaffect the cash flow as it is unrealised. Inthe sensitivity analysis, the current leaseportfolio has been taken into accountwith regard to rental revenue and vacantspace.SENSITIVITY ANALYSIS,LIABILITY PORTFOLIOThe interest-bearing liability portfoliois constantly exposed to interest ratechanges on the market. The analysis ofthe liability portfolio interest sensitivityis divided into two parts:• A change in value of interest derivatives(current values).• Cash flow effects (net interest income/expense) over a calendar year for itemswith a short fixed interest period,which are given a new short-term rateof interest for the remainder of theyear.As the fixed interest period is diversifiedand in accordance with the current riskmandate, a minimum of two years on average,the variations in the interest costwill fluctuate to a lesser extent than ifthe fixed interest period had been veryshort, e.g. three months.The Company has fixed interest periodsboth within and outside the Balance Sheetin the form of interest derivatives. Theaim of these derivatives is to facilitatea change in the liability portfolio’s fixedinterest period in addition to what isachieved directly in the financing. Thetable below shows the impact on profit ofa rise in interest of one percentage point.The calculations are based on an unchangedliability amount.SENSITIVITY ANALYSIS 2012CHANGEImpact on pretaxprofit, SEK mImpact on return onequity, percentage pointsImpact on fair value,not lease-bound, SEK mImpact on fair value,percentage pointsRental income, +/- one per cent 53 0.1 335 0.6Vacant space, +/- one percentage point 48 0.1 362 0.7Operating costs, +/- one per cent 9 0.0 80 0.1of which media provision 6 0.0 55 0.1maintenance costs, +/- one per cent * 6 0.0 45 0.1cost of capital, + one percentage point -3,315 -9.0 -3,315 -6.9cost of capital, - one percentage point 3,633 9.0 3,633 7.5Yield requirement, + one percentage point -3,730 -10.2 -3,730 -7.8Yield requirement, - one percentage point 5,175 12.5 5,175 10.8* A change in the maintenance cost that affects the profit and return on equity has been calculated based on actual maintenance costs. The effecton the fair value has been calculated based on a standard maintenance cost in the valuation model.SENSITIVITY ANALYSISLIABILITY PORTFOLIOFixed interest positions with a fixedinterest period in excess of one year withinthe Balance Sheet**Nominalamount,SEK mMaturity,years,averageFixedinterestduration,years,averageInterestrisk, oneinterestpoint,SEK mChange invalue of +100interest points,Interest, SEK m as of% the year-end *Net interest income/expense with 100interest points, SEK mduring the remainderof the calendar year *7,009 15.66 15.66 8.42 3.78 0 0Interest derivatives, fixed interest 6,561 0.00 3.77 2.43 3.02 243 0Interest derivatives, variable interest -6,561 0.00 0.19 -0.14 1.56 0 53Variable interest within the BalanceSheet***13,733 3.22 0.13 0.24 1.81 0 -119TOTAL 20,741 7.42 6.51 10.96 2.68 243 -66* Refers to one hundred interest points in a parallel displacement of the yield curve.** Fixed interest positions with a fixed interest period in excess of one year within the Balance Sheet refer to issues in SEK that are not included infair value hedges.*** Variable interest within the Balance Sheet refers to the total effect of issues in a foreign currency which, via derivatives, have been swapped tovariable interest in Swedish kronor and which are reported as hedges and FRn issues.EQUITY RATIO (y-axis) AND INTEREST COVERAGE RATIO (x-axis)%6050403020CLower financial risk10Higher financial risk00 100 200 300 400 500 600 700 800 900 %A Akademiska Hus ABB Vasakronan ABC Fabege ABB DG ED Kungsleden ABE Castellum ABF Hufvudstaden ABFAG Wihlborgs Fastigheter ABVärdeförändringar, MkrCHANGES IN THE VALUE OFINVESTMENT PROPERTIESSEK m %1,0002500100-500-1-1,000-2-1,500-3-2,000-4-2,5002008 2009 2010 2011 2012-5Changes in value, SEK mChanges in value, %

Royal Institute of Technology Campus, Stockholm

56AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: FINANCIAL RESPONSIBILITYSustainable enterpriseResponsible use of resourcesSustainable enterprise is central at Akademiska Hus to achieve positive financial, socialand environmental effects.Ångström Building, Linköping UniversityRESPONSIBLE, VALUE-ADDINGPROPERTY MANAGEMENTWork at Akademiska Hus on sustainabilityissues is central from a business strategypoint of view and in order to compete inthe long term for customers and createvalue for the owner. We have strategiesand objectives for handling sustainableenterprise and working actively on theseissues at the Company and in co-operationwith partners, customers, suppliersand other stakeholders.Sustainable enterprise work reducesthe non-financial risk exposure and reinforcesthe dialogue with stakeholders.Reduced energy use results in lower costsand improved profitability. This workreinforces the Akademiska Hus brandand increases the commitment andinvolvement of employees.The Akademiska Hus sustainableenterprise programme is presented in theSustainability Report. The SustainabilityReport, which is prepared according toGRI guidelines, is a means of driving sustainableenterprise forwards by systematicallyendeavouring to maintain a clearreporting and follow-up system.AKADEMISKA HUS BACKGROUNDAND ASSIGNMENTAkademiska Hus has been commissionedby its owner, the government, to offeruniversities and colleges in Sweden suitablebuildings for education and research.The Akademiska Hus businessconcept includes being at the forefront inthis area by creating high-profile, stimulatingenvironments for the Company’scustomers and in doing so contribute toreinforcing Sweden as a nation of knowledge.Sustainable enterprise includes financialresponsibility for satisfying the owner’srequirements and handling the longtermmanagement and development ofthe considerable financial, cultural andhistorical values that are embodied inthe property holdings.Akademiska Hus was founded in 1993.A reform took place in government managementthat resulted in authorities, includingeach individual centre of education,being assigned direct responsibilityfor the provision of premises. The reformled to all government-controlled bodiesbeing free to enter the market and tochoose and negotiate, in open competition,the premises required. The aim behindthe reform was to achieve more efficientprovision of premises and improve management,thus presenting a more representativepicture in the governmentbudget of the cost of land and buildings.INVOLVEMENT IN SUSTAINABILITYThe aim is for Akademiska Hus to showan example and through active involvementpursue sustainability issues. Contextsin which Akademiska Hus contributesto a more sustainable society are:• Sweden Green Building Council, SGBC• The Miljöbyggnad environmental classificationsystem• Building material assessment, BVBAKADEMISKA HUS SUSTAINABILITY REPORTThe Akademiska Hus Annual Report also includes a SustainableEnterprise section. This section presents the work being pursuedat Akademiska Hus on sustainable enterprise based onvarious dimensions – financial responsibility, environmentalresponsibility and social responsibility, thus following thedefinition of sustainability.

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: FINANCIAL RESPONSIBILITY57Financial responsibilityAdded value for owners and stakeholdersAkademiska Hus works in competition with and subject to the same terms and conditions as other propertycompanies. We are one of several players on the market where customers can negotiate a solution that suitstheir needs best.AAkademiska Hus should be runprofessionally and cost effectively,resulting in a strong financialposition. There is an ongoing search foropportunities to improve with the aim ofoffering customers competitive rents andgood property management. The surplusthat is generated is used to assure investmentin future knowledge environments.We strive to achieve good profitgrowth, economic sustainability andfinancial capacity. This offers securityand quality for the owner, customers andsociety. Financial responsibility involvessatisfying the demands made by theowner in terms of yield, equity ratio anddividend.An important part of this financialresponsibility is to assure operationalfunding that is efficient and secure.Akademiska Hus handles substantialloans on the international finance market.Borrowing is handled through a centralTreasury Department, the aim being toutilise economies of scale and facilitatethe efficient handling of financial riskexposure within the Company.STAKEHOLDER MODELBy actively handling financial, environmentaland social aspects, risks and costsare reduced and better use is made ofbusiness opportunities. Value is createdfor owners and stakeholders.ADDED VALUE FOR STAKEHOLDERSA large proportion of the rental revenuepaid by universities and colleges forpremises goes back to different stakeholdersthrough investment and meetingthe cost of running the buildings. Thesecosts take the form of payments to suppliers,salaries to employees, interest tolenders and taxes to society. The operatingsurplus assures our investment infuture knowledge environments. AkademiskaHus’s ownership situation, goodfinancial position, good earning capacityand strong tenant and lease structure offergood financing potential. AkademiskaHus’s excellent credit rating – a longtermAA rating with a stable outlook anda short-term A1+/K1 rating granted byStandard & Poor’s – is a source ofstrength in times of financial unrest.ADDED VALUE FOR THE OWNERThe government and the people of Swedenhave been able to benefit over manyyears from the financial value created atAkademiska Hus. Since 1993, the value ofproperties has increased through investmentand growth in value by SEK 42 billionto over SEK 54 billion. During 2012, thevalue of the properties fell by SEK 291million (+361), equivalent to a decrease of0.3 per cent (increase of 0.9) in the fairvalue. The property value was SEK54,677 million (52,071).The return on equity for 2012 was 6.8 percent (9.2). The yield requirement is thatthe yield on average equity should beequivalent to the five-year governmentbond interest rate plus four percentagepoints viewed over a business cycle. Theowner’s target for 2012 was 5.1 per cent(6.3) and was thus achieved. The yieldrequirement must be viewed over a businesscycle and over the past five years,the average target was 6.4 per cent whilstthe average yield on equity was 5.9 percent. The proposed dividend to the ownerfor 2012 is SEK 1,355 million (1,245).Almost 25 per cent of the revenue passedto the owner by satisfying the dividendtarget.The added value for 2012 does not includecorporation tax, which totalledSEK 601 million for the year. The reductionin corporation tax to 22 per centresulted in a change in deferred tax ofSEK 1,294 million.FINANCIAL STAKEHOLDER RELATIONSSEK 3,147 m,45%SEK 663 m, 9%SEK 1,695 m,24%SEK 195 m, 3%SEK 97 m, 1%SEK 1,245 m,18%AKADEMISKA HUS FINANCIAL OBJECTIVES• The return, profit after tax, on average equity shall be the equivalent of the averagefive-year government bond interest rate plus four percentage points viewed over abusiness cycle.• The dividend should be 50 per cent of the profit after financial items, excludingun realised changes in value, with a deduction for current tax.SuppliersEmployees – socialsecurity contributionsShareholder's dividendReinvested inthe CompanyEmployees – salariesInterest to lendersBoard of Directors,President and ExecutiveManagementSEK 6 m, 0%• The equity ratio should be between 30 and 40 per cent.

58AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITYEnvironmental responsibilityOur responsibility for the environmentAkademiska Hus’s environmental responsibility derives from the Company’s Environmental Policy.It describes an important part of the work that is being done to promote sustainable enterprise.BioCentre, Swedish University ofAgri cultural Sciences, UppsalaAkademiska Hus is a major playerin the construction and propertyindustry. Our size carries responsibility.The environmental programmeis based on established objectives coveringfour environmental aspects.The Akademiska Hus EnvironmentalPolicy was formulated in conjunctionwith ISO 14001 certification in 2004 andcan be found in the Company’s managementsystem. The Environmental Policydescribes the Akademiska Hus strategyand overall ambition regarding the environmentalprogramme. The fact that theEnvironmental Policy is included in themanagement system accentuates AkademiskaHus’s concern for the environment.It is the responsibility of eachindividual employee to pursue environmental work on a day-to-day basis.The Environmental Policy is communicatedinternally through the managementsystem and is available on theAkademiska Hus intranet AkaCampus.External communication takes placemainly through the Akademiska HusSustainability Report.The Environmental Policy is also partof the relationship with the Company’ssuppliers. Environmental work, workingenvironment and quality are importantcriteria for collaboration with contractors.Akademiska Hus properties are to befound in 28 towns and cities and operationsare divided into six regions.In each of the regions, there is anenvironmental co-ordinator responsiblefor directing environmental work. Anactivity plan for the environmental workat Akademiska Hus is adopted each year.Through this activity plan, we areAkademiska Hus environmentalwork focuses on fourenvironmental aspects:• Energy management• material management• Phasing out of hazardoussubstances• Indoor environmentendeavouring to engender commitmentthrough concrete activities and measures.Each year, the environmental coordinatorsdraft proposals for overall environmentalobjectives based on the fourAkademiska Hus environmental areas.The Board adopts the overall environmentalobjectives, which are then brokendown by the regions into detailed objectivesand regional activities. The objectivesand activities are presented in theregions’ business plans and are followedup as part of the work related to the businessplan. There is also reconciliationthrough a review by the Executive Managementon the regional level and for theCompany as a whole.Of the 36 common activities in theenvironmental network plan, 27 wereconcluded during the year. Five activitiesare ongoing, three remain and one hasbeen deleted. Examples of current jointactivities are the preparation of a chemicalregister and a review of the environmentalmanagement system based onaudit reports and deviation reports.

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITY59ENVIRONMENTAL POLICY• Akademiska Hus should be environmentally certified andthus comply with applicable laws, ordinances and otherrequirements.• Akademiska Hus should work to ensure that demands to preventpollution that could arise as part of operations are metand should make every effort to ensure that the environmentalprogramme is being constantly improved.• Akademiska Hus builds and manages properties in an environmentallyadapted, resource-efficient way.• Akademiska Hus works to ensure that the same environmentalcare is shown by customers, suppliers and partners, witha subsequent impact on the whole of the company’s operations.• Akademiska Hus attaches great importance to energy efficiencyand the development of alternative energy production.• Akademiska Hus endeavours to find the most efficient energysolution for each property, benefiting both the customerand Akademiska Hus.• Through its own high level of expertise, Akademiska Husshould be at the forefront in the development and use ofmodern, efficient technology and with a good environmentalprofile that supports construction and management and ultimatelythe work of our customers.• We seek to safeguard a good, sustainable, ecological environment.ONGOING IMPROVEMENTEnvironmental policyWhat does our environmentalwork entail?Environmental aspectsIn what way do we affectthe environment?Audits andmanagement reviewHow do we follow upthe system?Organisation, responsibility,laws and requirementsWho does what and what arethe demands?Monitoring, measurementand corrective actionHow are things proceeding?Environmental objectivesand action planWhat needs to be improved andhow will we achieve our objectives?Ongoing improvement is the driving forcebehind the environmental work at AkademiskaHus. The aim is to monitor andtake into account external demands andexpectations, to identify business opportunitiesand savings that are linked toenvironmental issues and to have a firmbasis for credible communication withstakeholders regarding environmental issues.Akademiska Hus has been certifiedaccording to ISO 14001 since december2004.Routines and instructionsHow should we work and whereis the information?

60AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITYFour important environmental aspectsENERGY MANAGEMENTAkademiska Hus energy work is based onreducing energy use and in doing soensure that our environmental impact islimited. This is based on the principlethat ‘one saved kilowatt-hour offers thebest climate benefit’.Akademiska Hus assumes completeresponsibility for the energy used in ourbuildings. Complete responsibility meansthat we do not focus purely on the energyused to operate the property but also includeto a certain extent the energy usedin our buildings. Our idea is based on theprinciple that the party that makes theinvestment also receives the financialbenefit from the reduction in energy,regardless of whether it is the propertyowner or the tenant. In our energy objectives,we have included, for example, thetenants’ power used for computers andlighting. We thus regard collaborationwith the tenant as critical to the successfulreduction in total energy use, thuslimiting the environmental load resultingfrom operations. In the existing propertyholdings, simple adjustments havebeen made for a long time and energy workis mainly about daily optimisation and investmentin energy-saving technology. Toensure this takes place, it is important thatthe right party, i.e. the property owner orthe tenant, has the right incentive.An important element in our longtermsustainability work is the fact thatsince 2011 we have only purchased bioenergy-basedelectricity.During 2012, two projects were commencedin the energy field.• Definition of requirements and the introductionof a joint, systematic followupprocess. More consistent energyfollow-up will improve comparison ofenergy use and identify energy-savingmeasures.• Systematic work for operational optimisationand directed energy initiativesas well as training of operatingtechnicians. The aim is to increaseknowledge among operating staffthrough training in operational optimisation.Energy PortalThe Energy Portal is Akademiska Hus’scentral system for energy follow-up. Itcollates all energy measurements. Over10,000 meters compile over 500 millionmeasurements. This has been done continuouslysince 2000. These readingsprovide details of the overall energy useand at the same time the opportunity togo deeper, down to the building level orcomponent level. Apart from energystatistics, there are also tools of both atechnical and financial nature. There areproposals for ways of improving energyefficiency, gathered on the building level.Efficiency improvement of an entirebuilding – Total Measure Concept, TMCWith the aid of TMC, the best energysolution is identified for a building withoutsacrificing profitability. In the applicationof TMC, the following stipulationsare made:• The solution must be profitable inrelation to the yield requirement.• Measures must be viewed from an energyefficiency enhancement point of view.• Measures used in a concept must beimplemented.Incentive modelsThe choice of a lease that either includesor does not include heating depends onthe energy use situation in practice andis crucial to the formulation of the businessmodel used for energy.In commercial properties, energy canbe saved if the lease is formulated in sucha way that heating and cooling are includedin the lease. The property owneris the party that has greatest potential to• The most important questionand the greatest challenge isreducing energy use.• new construction takes placeaccording to ‘Environmentallyclassified building, silverlevel’• The greatest potential for improvementcan be found in existingholdings and this frequentlyrequires investment.influence the use of heat, partly throughprofessional and continuous optimisationbut also through the potential to influencefuture investments with a bearingon energy efficiency. Investments arefrequently in the form of advance maintenancewere functioning, yet energyinefficientequipment is replaced by moremodern, efficient solutions. To financethese investments it is natural that theproperty owner can also benefit from thereduction in energy use.In the case of electricity, there is notthe same clear lease-dependent connection.Instead, it is natural for the tenantto be charged separately for the electricityused for operations, e.g. lighting andcomputers.ENERGY OBJECTIVESEnergy objectives,construction projects, kWh/m 2According to the EU directive on theenergy performance of buildings, all newconstruction from 2018 must reach thealmost zero energy building level. In thecase of publicly owned buildings, there isa requirement to gradually achieve almostzero energy building status. The exactlevel for almost zero energy has yet to bedecided although the indication is thatenergy use of 50–60 kWh per squareINCENTIVE MODELHeat use, kWh/m 2Rent, excluding heatingHybrid modelsRent,includingheatingTechnical development and rising energy priceshave justified investment in equipment beingreplaced in advance, both from a financial andresource-efficiency perspective. For this to takeplace proactively, it is important that the benefitaccrues to the party responsible for the investment.In commercial properties, where thetenant has less opportunity to influence theuse of heating and cooling, this ought to beallocated to the lease, where the rent includesheating.AKADEMISKA HUS VIEW OFOPTIMAL ALLOCATION OF ENERGY COSTSINCLUDEDIN THE RENTHeatingcoolingElectricity used inproperty operationHybrid modelCHARGEDSEPARATELYElectricity usedby the tenantProportion of heat included in the rent (%)0 50 100Optimal allocation of energy costs from anenergy efficiency perspective. The party thatcan influence and improve the efficiency ofenergy use should also be able to benefit inthe form of reduced energy costs.

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITY61metre per year will apply. Since 2011,Akademiska Hus has imposed stricterenergy-related demands for new constructionto ensure that this figure isachieved. There will be extensive newconstruction over the next few years.Since 2008, Akademiska Hus has hadambitious, energy-related targets for newconstruction and redevelopment. Inseveral of the Akademiska Hus new constructionprojects, energy use has notonly fallen below the requirements laiddown by the National Swedish Board ofBuilding, Planning and Housing, but alsothe levels for Green Building and passivebuildings. As part of the task of reducingenergy use in the property sector, AkademiskaHus is a partner in sector organisationssuch as Green Building Council,the Swedish Energy Agency and others.Energy objectives – property managementEnergy-saving initiatives are implementedsystematically to identify and implementimprovement measures. The focusis on reducing energy use within existingholdings. If our energy-saving initiativesare to have a good outcome, there mustbe maximum focus on existing holdings.In 2011, Akademiska Hus became affiliatedto the environmental classificationsystem Miljöbyggnad. The system providesan overall picture of how a building functionsand is a means of saving energy,people’s health and the environment.Akademiska Hus aims to achieve at leasttwo silver levels for all large new constructionand redevelopment projects.During the year, Forensic Medicine inGothenburg became the first new projectto achieve Miljö byggnad Silver classificationin the areas of energy, indoor environmentand materials/chemicals. TwentyfourAkademiska Hus buildings are registeredfor certification with the SwedishGreen Building Council.MATERIAL MANAGEMENTFor Akademiska Hus, material managementinvolves shifting from waste managementto material management. Long-term property ownership, with generaland flexible premises, where quality andsustainable materials are prioritised, reducesthe need for redevelopment and replacementof materials. Restraint and efficientuse of materials minimises theemission of greenhouse gases and is thuspositive from a climate point of view.Three important basic principlesapply in the day-to-day work related tomaterial management:• The precautionary principle means thatenvironmentally tested solutions arechosen rather than new, unknownsolutions.• The replacement principle means thatenvironmentally better materials andproducts must be chosen when productsthat are equal in function areavailable.• The prioritisation scale means that thefollowing order should be observed:- Minimisation, i.e. management of rawmaterials and energy- Reuse (Recycling of products).- Material recycling- Energy extraction/combustion- Landfill and special disposal (hazardouswaste)PHASING OUT OFHAZARDOUS SUBSTANCESAkademiska Hus is working to ensurethat players in the industry will requestand provide construction products thatoffer increasingly better environmentalperformance, which will speed up developmentand the phasing out of productsthat have significant negative environmentalproperties.Together with 20 or so of the largestproperty owners in Sweden, AkademiskaHus is a partner in a system for the environmentalassessment of constructionproducts, known as Byggvarubedömningen(Building Material Assessment), or BVB.The aim behind BVB is for the buildingsof the future to be constructed using onlyenvironmentally assessed products. Thesystem is used to assess chemical productsin property management and a sys-tem for material documentation in bothconstruction and management, thusfacilitating the choice of materials andproducts that offer the best possibleenvironmental performance.Akademiska Hus has made an inventoryand cleared all sealants used in outdoorfacades that contained PCB injoints. Clearance has also gradually takenplace of PCB indoors in sealants, insulationglass, certain floor materials andcondensers. A small number of buildingsremain and activity plans have been preparedfor taking measures well inadvance of 2014 and 2016 according tothe PCB Ordinance etc. SFS 2010:963.GOOD INDOOR ENVIRONMENTAkademiska Hus is striving to achievegood indoor environments, which are aprerequisite for health and job satisfactionamong all those who work and studyin the Company’s premises. The startingpoint for Akademiska Hus’s environmentalwork is ‘human space’, which meansthat the health aspect is prioritised.Radon measurementsAkademiska Hus has previously carriedout indicative radon measurements in allbuildings that have permanent workplaces.More thorough radon inventories, withsubsequent and more detailed hour valuemeasurements, have been carried out inbuildings where raised levels had beenindicated. With the introduction of MiljöbyggnadSilver, the limit was lowered to100 Bq per m 3 . The Swedish Work EnvironmentAuthority limit for workplacesis 400 Bq per m 3 .Moisture managementThere is a great deal of emphasis onmoisture safety in construction. AkademiskaHus has a certified moisture expertand general requirements for moisturesafety in construction have beendrawn up in conjunction with the industrystandard (ByggaF, Method for MoistureSafety in the Building Process).BUILDING COMPARISONkWh/m 216012080A national Swedish Board of Building,Planning and Housing building rulesB GreenBuilding standardsc low-energy buildingd Academicum GothenburgE natural Sciences Building, umeåF Vänern Building, KarlstadG School of music, Theatre and Art, ÖrebroThe graph shows a number of Akademiska Hus40buildings and how much energy they use. Propertyenergy, cooling and heating together are0compared to the Akademiska Hus average forGFEDCBAoffices and teaching buildings, which is 150Energy use kWh/m 2kWh/m 2 , and the same figure is the nationalEnergy use kWh/m 2 , Akademiska Husaverage according to the STIl2 Study. AkademiskaHus office and teaching buildings accountAverage for Swedish office buildings (STIl2for approximately 60 per cent of the propertyStudy) and the average for Akademiska Hus holdings. laboratory buildings account for 34office and teaching buildingsper cent of the floor space. These have higherenergy use expressed in kWh/m 2 due to ventilationrequirements and so forth. 150 kWh/m 2is almost three times higher than AkademiskaHus’s best buildings. Even compared withGreenBuilding standards they are well placedfrom an energy use point of view. Buildingsthat use little energy are often new althougholder buildings can also be made more energyefficient. A good example is the Science Buildingin umeå, which dates from the 1970s andnow has an energy figure of less than 50 kWh/m 2 .The majority of Akademiska Hus buildingswill still be in existence in 2050 and if we andSweden as a nation are to achieve the nationaltargets it is mainly a question of working withexisting holdings, which offer major energysavingpotential.

62AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITYFulfilment of environmental objectivesENVIRONMENTAL ASPECTS LONG-TERM INDICATORS GUIDELINES ACTIVITIES/FULFILMENT OF OBJECTIVESEnergy managementWe assign high priority to improvingenergy efficiency andthe development of alternativeenergy production. We endeavourto find the most effectiveenergy solution for each propertyto the benefit of both thecustomer and us.using the figures for 2000 as astarting point, energy consumption(purchased energy per squaremetre) will fall by 40 per centthrough to 2025.Purchased energy:Reduced each year by 2 percent, kWh/m 2Each facility/building willhave a positive trend viewedon an annual basis.38 per cent of all facilities/buildingsuse more energy in 2012 compared to2011.Energy investments and energy optimisationhave been carried out to achievethe objectives.Equivalent emissions of greenhousegases (cO 2) for purchased energy arepresented.In new construction and redevelopment,we use the miljöbyggnadindicators for the Energy area.All new buildings will satisfyenergy requirements accordingto miljöbyggnad Silverclassification.In time, existing buildingswill satisfy the miljöbyggnadSilver classification criteriafor energy.In 2012, all new construction commencedwas notified for miljöbyggnadSilver level certification.In 2012, one existing building in eachregion was examined using the miljöbyggnadSilver classification criteriafor energy.Material managementWe build and manage our propertiesin an environmentallyadapted, resource-efficient way.Akademiska Hus does not draw onfinite resources.using lcc, regular account is takenof material management.Phasing out ofhazardous substancesWe will work to ensure that thedemands for preventing pollutantsthat could arise in operations aremet and we will endeavour toensure that our environmentalwork is improved continuously.Akademiska Hus only uses acceptedor recommended productsassessed as part of Building materialsAssessment.All buildings satisfy miljöbyggnadSilver level indicators level withinthe area materials and chemicals.Akademiska Hus uses featurerelatedcriteria when assessingthe chemical content inmanagement products.All new buildings must satisfythe material requirementsaccording to miljöbyggnadSilver classification.chemical lists in property managementhave been drawn up with theaid of Building materials Assessment.In 2012, all new construction commencedwas notified for miljöbyggnadSilver level certification.In 2012, one existing building in eachregion was examined using the miljöbyggnadSilver classification criteriafor materials.Indoor environmentOur properties and campuses willsatisfy the changing needs ofour customers over time.For all buildings, we use miljöbyggnadSilver level indicators in theIndoor environment area.All new buildings must satisfymiljöbyggnad Silver classificationlevel within the areaIndoor environment.miljöbyggnad implemented atthe company.Satisfied completelySatisfied in partnot satisfied

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: ENVIRONMENTAL RESPONSIBILITY 63Environmental indicatorsELECTRICITY USEGWh kWh/m 2500400300200100020082009201020112012Electricity, GWh Electricity, kWh/m 22001601208040For 2012 and 2010, Akademiska Hus purchasedorigin-guaranteed electricity produced from HEP.During 2011, bioenergy-generated power was purchased.It is estimated that electricity used byAkademiska Hus before 2010 had a proportion ofcarbon dioxide-free generated electricity (HEP andnuclear power) amounting to 90 per cent, whilst10 per cent came from fossil fuels.0HEAT USEGWh kWh/m 250040030020010002008200920102011Heating, GWh Heating, kWh/m 2020122001601208040The proportion of carbon dioxide-free-generatedheat (bioenergy and residual energy) used byAkademiska Hus totalled 85 per cent with 15 percent coming from fossil fuels.KEY EVENTSIn 2012, origin-guaranteedelectricity produced fromHEP was purchased.The aim at AkademiskaHus is that all our new buildingswill be environmentallyclassified and at least satisfy therequirements laid down in theSweden Green Building councilmiljöbyggnad Silver level.CO ²EQUIVALENTScO ²kg/m 21612840WATER USE1,000 m³ litres/m 21,5001,200900600300200802008200920092010201020112011Water, m³ Water, litres/m 2Akademiska Hus uses water from theSwedish municipal system.2012CO 2-equivalents, electric power kg/m 2CO 2-equivalents, heating kg/m 2CO 2-equivalents, cooling kg/m 2020121,000750500250CO ²EQUIVALENTS, TOTAL, TONNEScO ²1,000 tonnes6045301502008COOLING USEGWh kWh/m 210080604020020082009200920102010201120112012CO 2-equivalents, electric power totalCO 2-equivalents, heating totalCO 2-equivalents, cooling totalCooling, Ghw Cooling, kWh/m 225201510502012Akademiska Hus uses mainly cooling from freecooling, bottom water and traditional generationof cooling. It is estimated that 50 per centof the cooling is produced using electricity(compressor operation) with cooling factor 3.Computation basis forcarbon dioxide equivalentsThe stated volume of carbon dioxide equivalentsis estimated according to information receivedfrom Akademiska Hus’s district heating providersthrough the industry body Swedish districtHeating Association. The information refersmainly to 2011. The computation method haschanged compared to reports in previous years.using the equivalent computation method, cO 2for 2011 amounted to approximately the samelevel.An average of Akademiska Hus purchasedelectrical energy was set at 5 g cO 2per kWh.The level is given by the industry organisationsSwedish district Heating Association and SwedishEnergy Association. The purchase of electricityby Akademiska Hus consists entirely oforigin-guaranteed electricity from HEP with acarbon dioxide impact of 5 g cO 2per kWh.The Akademiska Hus average for purchasedenergy for district cooling is set at 10 g cO 2perkWh of delivered cooling.Free cooling, bottom water etc. and traditionalgeneration of cooling dominate althoughabsorption technology is also used. The calculationbasis for cO 2generation is that 50 per centof the cooling is produced using electricity(compressor) and that the cooling factor, includingcooling unit-linked pumps, fans etc. is 3.Other pump energy etc. (electricity) is estimatedto be equivalent to 10 per cent of the coolinggenerated. Each kWh cooling unit generated requires0.5 / 3 = 0.17 kWh of electricity as well aspump electricity etc. 0.1 kWh, which in turn representsa total of 0.27 x 40 = 10 g cO 2. The calculationfor district cooling is based on the assumptionthat electrical energy used togenerate cooling gives rise to 40 g of cO 2perKWH.USE OF ENERGY AND WATER PER REGIONElectricity kWh/m 2 Heating kWh/m 2 Cooling kWh/m 2 Water Litres/m 2Region 2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012South 130 129 129 110 116 106 31 34 33 395 438 430West 99 96 97 76 72 67 9 9 9 342 362 342East 104 105 108 86 87 87 36 41 39 419 372 345uppsala 134 125 119 140 131 121 1 4 5 216 254 256Stockholm 107 109 110 122 120 122 28 33 31 481 438 437north 107 103 110 82 75 72 9 10 8 388 368 342AVERAGE 114 111 112 108 105 101 19 22 21 381 377 371

64AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: SOCIAL RESPONSIBILITYSocial responsibilityKnowledge of the needs of customersBy focusing on the academic world, we have over the years accumulated experience of the day-to-day life, needsand wishes of Swedish centres of education. The fact that we operate throughout the country gives us theopportunity to enhance efficiency and transfer good ideas from one part of the country to another.during the year, a strategywas produced for how workon the employer brandshould be pursued. Staffturnover has increased andthe provision of knowledgeand expertise is becoming increasinglyimportant.SUSTAINABLE ENTERPRISEAs a government-owned company, ourwork is based on the guidelines laid downin the government ownership policy inwhich sustainable enterprise is a keyelement. Government-owned companiesshould be role models and be at the forefront,armed with a carefully consideredstrategy for the environment, diversity,equality, business ethics, anti-corruption,working conditions and human rights.During the year we recruited a sustainabilitymanager, who is charged with acquiringan overall understanding of thewhole area and leading the task of producingvalue-adding measurements during2013 for follow-up in 2014.AN ATTR ACTIVE WORKPLACEATTRACTS EXPERTISEStaff turnover at Akademiska Hus hasincreased in recent years. This can be attributedin part to a high age structurewithin the Company and thus more peopleretiring, and in part to increased competitionfor skilled employees on the labourmarket. The increased staff turnovermeans that provision of knowledge andKey Building, Linköping Universityexpertise is coming to the fore even more.We must work actively to retain our employeesand attract new employees withthe correct knowledge and competence.An important element in this process isdeveloping our employer brand, i.e. howAkademiska Hus acts and is perceived asan employer by present and potentialemployees. During the year, we produceda strategy for how a structured programmeof activities related to theemployer brand will be pursued.EDUCATION AND DEVELOPMENTThe rate of education and developmentin the Company continues to be high. Inorder to meet customer demands andneeds, it is important that our employeesundergo continuous professional developmentto acquire the skills necessaryfor them to perform their duties.Appraisal discussions are an importantbasis for competence developmentand the aim is that each employee hasregular appraisal discussions with theirsupervisor. In 2012, 88 per cent (96) hadan appraisal discussion with their supervisor.The discussion is documented inthe form of an individual activity plan inwhich the aims should be clear, challenging,time-specific and quantifiable. Asregards strengths and areas for improvement,a note is made if there is any areaof expertise that needs to be reinforcedand, if so, what activities would be required.An improvement is planned to beintroduced next year where the numberof training hours will be registered in thehuman resource system.Competence training includes a deepeningof knowledge within each professionalarea as well as general training tosupport personal development. Apartfrom the in-house leadership programmefor managers, we have developed an inhouseleadership programme for projectleaders. The programme started duringthe autumn and is based on the AkademiskaHus leadership philosophy, whichpresents the expectations that we as acompany have of our managers. The aimis to provide basic knowledge and toolsthat will create the requisite conditionsfor clear management and leadership.Each year, a joint training day is run forall employees. The focus is on knowledgeand understanding the parts of the Groupin which one is not personally active. Customersand other external persons are invitedto the training day as speakers.MOTIVATED EMPLOYEESEach year, Akademiska Hus runs a SatisfiedEmployee survey. The aim is tomeasure the current situation and toproduce an effective means of workingaimed at ongoing improvement of leadershipand empowerment. The SatisfiedEmployee Survey is a tool that can be

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: SOCIAL RESPONSIBILITY65used by the executive management andall managers and units within AkademiskaHus in order to control and develop operations.The results are presented on companylevel, on regional level and on Grouplevel with a minimum of five employees.The main areas are employer, duties,competence, leadership, communication,cooperation and organisation.The Satisfied Employee Index (NMI)measures how satisfied employees arewith their working situation and AkademiskaHus as an employer. Generally,there have been relatively small changesin attitudes during the year within thedifferent sub-areas included in the survey.The results for 2012 show that AkademiskaHus employees are slightly less satisfiedwith their working situation compared tothe previous year. The NMI for 2012 was69 (70). The response rate for the SatisfiedEmployee Survey 2012 was 91 per cent (93).WORKING ENVIRONMENTPROGRAMME 2012Since 2007, the Akademiska Hus workingenvironment programme has been certifiedaccording to AFS 2001:1 ‘Systematicmanagement of the working environment’.In 2012, the working environment managementsystem was recertified for anew, three-year period. As in previousyears, the certification body carries outannual follow-up certification audits,which involves the auditors visiting eachregion and the Head Office.The most important way for AkademiskaHus to follow up how the working environmentprogramme is developing andwhether objectives are being achieved,takes place mainly – apart from the certificationaudits – through controls in variousforms. These controls commence witheach unit in the Company mapping theworking environment risks in their operationseach year. Based on risk mapping,the unit formulates an activity plan withthe aim, through training and differentmeasures, to improve conditions and toprevent accidents and near-accidents.An important tool to measure how staffat Akademiska Hus perceive the workingenvironment is the Satisfied EmployeeSurvey. A number of the questions in thissurvey focus directly on areas of the workingenvironment which Akademiska Husstaff feel should be a priority.In response to the survey question ‘Doyou feel that Akademiska Hus handlesworking environment issues well’, 83 percent of the employees agreed (83).The most important and prioritisedareas related to the working environmentin 2012 were leadership, organisation andempowerment.The way in which risks are mappedhas been gradually improved during theyear and this is now being done consistentlythroughout the Company, making iteasier to make comparisons and to learnfrom each other.HEALTH AND FITNESS INITIATIVEAkademiska Hus is working actively toinspire all employees to live a healthierlife. There are special ‘health and fitnessmotivators’ in each region. The task ofthe health and fitness motivators includesoffering all employees the opportunity totry out different health and fitness activitiesduring the year. There is also a jointtheme each year and in 2012, the themewas ‘The year of movement’. In addition,all employees receive an annual healthand fitness grant of SEK 3,000 for personalhealth and fitness activities.Akademiska Hus has had a routine inplace for handling sickness and rehabilitation,which complies with the systemintroduced by the Social Insurance Office.Akademiska Hus does not have anyoperations in countries in which there isa high risk of contagious diseases or inprofessional areas in which there is ahigh frequency of specific diseases.STAFF STRUCTURE AND TURNOVERThe total number of employees at the endof 2012 was 415 (415). The average age inthe Group was 48.1 years (47.9). In total,53 per cent (53) are aged between 30 and50 and only 4 per cent (4) are under theage of 30.Staff turnover during 2012 was 10.1 percent (11.2). Nine people retired during 2012(20). At the turn of the year 2012/2013, 50employees (49) were aged 61 or over.In total, 26 per cent (24) of AkademiskaHus employees are women. In the moreoperative positions, the property industryis still very much male-dominated. Thereis a conscious endeavour within AkademiskaHus to achieve a better genderbalance within different positions in theorganisation and in management teamsand joint process groups.Today, the division between men andwomen in managerial positions reflectsthe gender division in the Company. Ofthe managerial positions in the Company,26 per cent are held by women.A salary survey was conducted in 2012based on equal/similar positions involvinga comparison of the salary level offemale-dominated professional groupswith ‘non-female-dominated’ roles withineach group. The results of the surveyshowed that there are no salary differencesin what are otherwise equal positions.COLLECTIVE AGREEMENTS ETC.Akademiska Hus is a member of theAlmega Property Owners branch of theemployer organisation Almega ServiceSector Association. There is a collectiveagreement signed by Almega PropertyOwners and the trade unions Unionen,Ledarna, the Swedish Association ofEngineers and SEKO. All employees atAkademiska Hus are covered by thisagreement. The minimum period ofnotice regarding changes in operations isspecified in current collective agreementsfor Akademiska Hus.Akademiska Hus does not conductoperations where the employees’ right toassociation and right to a collectiveagreement are materially threatened.Nor does it have operations where thereis a tangible risk of child labour or whereyoung workers are exposed to hazardouswork or operations that are regarded asconstituting a risk that forced labour orcompulsory work would arise.DIVERSITY PROGRAMMEThe Akademiska Hus equality and diversityplan includes working to bring aboutgreater ethnic diversity. Each time aperson is recruited, Akademiska Hustakes into account ethnic diversity as akey factor.Some 10 per cent (11) of AkademiskaHus employees, i.e. 41 persons (45), havea foreign background with at least oneparent who was born outside Sweden.The Akademiska Hus equality and diversityplan is a control instrument andan expression of the view of equalitybetween men and women, confirmingthat the same conditions shall apply toemployees and applicants regardless ofethnic affiliation, age, religion or otherbelief, sexual persuasion or functionaldisability. No cases of discriminationwere reported or investigated during2012.

66AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: SOCIAL RESPONSIBILITYMarket responsibility as a leaderAkademiska Hus has a strong position on the rental market for universities and colleges. Our strong position alsocarries substantial responsibility for observing good ethics in its business relations. The Ethics Policy is a meansof assuring this.CODE OF CONDUCTDuring 2012, work commenced on producinga Code of Conduct based on theten principles in the UN Global Compact,the UN framework for companies andhuman rights, as well as the OECD guidelinesgoverning principles at multinationalcompanies dealing with the environment,human rights, workingconditions, anti-corruption and businessethics as well as equality and diversity.The Code should contain guidelinesfor how employees at Akademiska Husshould act in different contexts and whatwe expect of our partners, suppliers andsub-suppliers. At Akademiska Hus, ouraim is that everything we do should becharacterised by competence, integrity,moral honesty, transparency and goodwill.BUSINESS ETHICS AND INTEGRITYAkademiska Hus’s ambition is to be regardedas a company with a high degreeof integrity and morality and which runsand develops sound business operations.Our operations should be characterisedby impeccable business ethics. This ishow we best safeguard long-term relationswith our customers and success inbusiness. Financially sound, successfuloperations also include responsible energyand environmental work. Good ethics includeassuming personal responsibility,being committed and honest and beinginvolved by helping and supporting eachother. By adopting such an approach, weengender confidence.In our ethical approach, we shouldcomply with laws and ordinances andwhat is meant by good practice in ourindustry. We strive to adopt an open attitudein the dialogue with those who areaffected by our work and we are clearabout the terms, conditions and rulesthat apply at our Company. In our businessoperations, we should not resort tomethods such as corruption, bribery anduntrustworthy methods to limit competition,thus distorting the markets andpreventing financial, social and democraticdevelopment. As Akademiska Hushas a high market share, the way it acts isparticularly important. Providing goodservice to customers and users should becentral. Akademiska Hus has an importantresponsibility to build, develop andmaintain modern environments forresearch, education and innovation andtogether with our customers, we developtheir operations and brands. Thisresponsibility is something AkademiskaHus must live up to and is an importantcornerstone in Akademiska Hus’s veryexistence.The relationships between colleaguesand between management and employeesshould be based on mutual respect anddignity. We endeavour to have the bestconceivable working environment, whereeveryone has the same opportunities,regardless of gender, nationality, religion,ethnic affiliation or other distinguishingfeatures.RESPONSEIn 2012, Akademiska Hus conductedResponse, a qualitative customer surveyin the form of in-depth interviews with18 representatives from our fourteenlargest customers. The aim of the studywas to highlight the views of our largestcustomers, thus giving us a better understandingof how we can continue toimprove and develop our customer relations.The survey also provided a goodbasis for following up work during 2011and a basis for the discussions within theBoard regarding the strategic choice ofdirection for the coming years. Examplesof views that have emerged from thesurvey were that Akademiska Hus shouldexplain its mission more clearly and itshould clarify the rental model.ETHICS POLICYThe Akademiska Hus Ethics Policy clarifiesthe Company’s moral and ethicalvalues and the expectations of itsemployees with regard to contact withexternal parties and acting in the nameof the Company.Ethics can briefly be defined as thecarefully considered perception of whatis right or wrong. The Ethics Policyprovides support on how the employeesshould act in different situations. Ultimately,however, each individual is responsiblefor his or her ethical decisions.Good ethics require that everyoneassumes true personal responsibility.Good ethics embody honesty, helpfulnessand supporting each other, both professionallyand privately. Good businessmorals require that in our dealings withcustomers and in other businessrelationships, we do everything we havepromised and rectify all mistakes withoutdiscussion. Our aim is that customersand stakeholders should feel that AkademiskaHus runs and develops sound,successful operations with a high degreeof integrity and morals.All employees have received trainingin the contents of the Ethics Policy. TheEthics Policy is also available on theAkademiska Hus internal informationand communication platform, the intranetAkaCampus.ETHICS POLICY IN BRIEFAkademiska Hus shall endeavour to maintainimpeccable business ethics.Akademiska Hus shall endeavour to uphold amutually strong and durable relationship withits employees and customers.Akademiska Hus shall, in the light of the aimto maintain a financially sound and successfuloperating base, endeavour to pursue responsibleenergy and environmental work.

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: SOCIAL RESPONSIBILITY67Social indicatorsEDUCATION LEVELAGE DISTRIBUTIONLENGTH OF EMPLOY-MENTSecondary schoolHigh school/vocationalcollegeAcademic qualificationAcademic education,more than 30 creditsVocational training/operating/propertytechnicianUp to 30 years30–50 years51–60 years61 years and olderOver half of the employees arebetween 30 and 50 years of age.10 years68 procent av de anställdahar varit anställda i över 5 år.The Grundskola majority of employees belong to the operatingGymnasium/Yrkesskolatechnician category with relevant vocationaltraining Akademisk or experience. examen management and supervisoryAkademisk personnel utbildning, often have an academic education.mer än 30pKY-utbildning/drift/STAFF fastighetsteknikerTURNOVER%12108642020082009Staff turnover, %201020112012Staff turnover for 2012 was 10.1 per cent (11.2).Nine people (20) retired in 2012. Approximately10 people retire each year.Over Up to half 30 of years the employees are between 30 and30–50 years years of age.51–60 years61 years and olderOver half of the employees arebetween 30 and 50 years of age.ATTENDANCE%10080604020020082009Attendance, %201020112012Absenteeism due to illness during the yearamounted to 2.5 per cent (3.7), of which longtermabsenteeism was 0.8 percentage points (2.0).Akademiska Hus works actively on health issues.68 per cent of employees have been employedfor 10 years68 procent av de anställdaBREAKDOWN OF EMPLOYEEShar varit anställda i över 5 år.ACCORDING TO POSITIONAND GENDER Women MenProperty technicians 7 136Property engineers/operatingengineers2 37Property managers 9 29Senior property managers 2 9Project managers 11 25Accounting personnel/Administration46 18Executive management 6 7IT/communication 20 25Other positions 6 20Total 109 306PROPORTION IN PER CENT 26 % 74 %The proportion of women and men in managerialpositions reflects the gender division in thecompany as a whole.EXTRACT FROM THE EMPLOYEEQUESTIONNAIRE 2010 2011 2012I am aware of the strategic objectives atAkademiska Hus83 88 88my manager/supervisor follows up my individualactivity plan75 83 83Overall, I am very happy with my duties 77 78 79I assume responsibility for developing theskills and expertise I need in my work *89I feel I am respected by my immediate superior 80 85 84I have the authority to take action to solveproblems that arise in my work82 84 87Are you happy at work? 87 89 92* new formulation, therefore no history.SATISFIED EMPLOYEE INDEX (NMI) –UNDERLYING FACTORS 2010 2011 2012Employer 70 74 72duties 77 78 79co-operation and organisation 62 66 69competence and development 75 84 88Objectives * 83 83Appraisal discussions 78 81 80leadership 73 78 78Remuneration 44 52 54Physical working environment 80 83 84TOTAL NMI 67 70 69* new area for 2011SATISFIED EMPLOYEE INDEX (NMI) PER REGION75SATISFIED EMPLOYEE INDEX (NMI)75NUMBER OF MANAGERS,NUMBER OF WOMEN AND MEN2070701565605565605510550SouthNMIWestEastUppsalaStockholmNMI, averageNorthHeadOffice5020082009 2010 2011 20120HeadOfficeSouthWomenWestMenEastUppsalaStockholmNorth

68AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: STAKEHOLDERS AND SUSTAINABILITY ISSUESStakeholders and sustainability issuesDialogue with stakeholdersWe endeavour to achieve an open, active dialogue with all stakeholders. Information about AkademiskaHus must be transparent and readily availableBoiler Facility, Royal Institute of TechnologyOUR STAKEHOLDERSAkademiska Hus stakeholders are definedas the organisations or individualswho are affected by Akademiska Husactivities, products and services andwhose actions can influence the potentialto implement our vision successfully– to become a world leader in knowledgeenvironments. Stakeholders have beenidentified by mapping the impact AkademiskaHus has on different groups or individuals,or the impact different groupsor individuals have on Akademiska Hus.The stakeholders which AkademiskaHus identifies as most important are – inaddition to the government – customers,users, lenders, employees, suppliers, themedia and politicians. Communicationwith stakeholders takes place on anongoing basis as an integral part of theCompany’s operations. The table specifiesthe most common types of dialogue witheach group of stakeholders.OUR MOST IMPORTANTSUSTAINABILITY ISSUESCo-operation is a prerequisite for ourmission and takes place with the Company’smost important stakeholders. To ensurethat we work and report on those areasthat are most important for the work ofthe Company and are our stakeholders,stakeholder analyses are conducted continuously.The results of the stakeholderanalysis show that the highest prioritywas energy use. Properties account forapproximately 40 per cent of energy usein Sweden and Akademiska Hus propertiesmake up approximately two percent of the non-residential premises inSweden. Our properties are expected tohave a high level of energy efficiency and

AKAdEmISKA HuS 2012SUSTAINABLE ENTERPRISE: STAKEHOLDERS AND SUSTAINABILITY ISSUES 69STAKEHOLDER ISSUES DIALOGUE RESULT (EFFECT)Owner Profitability, responsible enterprise Annual General meeting, work of theBoard of directors, meetings, akademiskahus.se,Annual ReportAnnual Report, corporate GovernanceReport, merger, dividendLendersProfitability, responsible enterprise,financial stability, business opportunitiesmeetings, Annual Report, akademiskahus.secredit rating, confidenceCustomersEnergy efficiency, environmental impactof buildings, knowledge environments,campus plansResponse customer Satisfaction Index,focused discussions, campus planningcustomer meetings, akademiskahus.se,Annual ReviewViews obtained from qualitativecustomer interviews, AkaFuture –analysis of current statusUsers Knowledge environments, campus plans Reinforced communication,akademiskahus.se, Annual ReviewIncreased awareness of AkademiskaHusSuppliersEnvironmental work and social responsibilityat suppliers; terms and conditionsof employment for employees; paymentcapacityProcurement, negotiations,akademiskahus.seLocal community urban plans, campus plans Reinforced communication,akademiskahus.se, campus planningIncreased awareness of AkademiskaHusEmployeescompetence development, workingenvironment, organisationSatisfied Employee Index (nmI),akademiskahus.secode of conduct, equality plan,training programmes, activerecruitment, management days,vision meetingsMedia Knowledge environments Press releases, interviews, akademiskahus.seA clearer picture of the operationsand role of Akademiska HusPoliticiansThe development of Sweden as a nationof knowledgeAnnual overview, akademiskahus.seGreater interest in knowledgeenvironmentsas little impact on the climate as possible.Another important issue concernssub-suppliers used by Akademiska Hus.This applies both to the choice of materialsmade in conjunction with new constructionand the working methods employedwhen it comes to environmentalresponsibility and social responsibility.This includes the suppliers’ own environmentalprogrammes and the workingconditions that apply to employees atsub-suppliers. Akademiska Hus is alsoexpected to observe good ethics in itsbusiness relationships. This is particularlyimportant for a company such asAkademiska Hus, which by virtue of itssize is a major operator and has a strongposition on the market.Akademiska Hus employees expectthe Company to be a good employer,offering good development opportunitiesand a safe, healthy working environment.Equality, diversity and measures toachieve a balance in life are part of thistotality.CAMPUS PLANSIn recent years, Akademiska Hus hasinvested in a highly focused way in developingnew, future-oriented campus plansin close collaboration with the centres ofeducation. Campus planning is abouthow the activities in the areas will bedeveloped and how campuses should bedeveloped as urban districts. The focusis on how a campus can contribute toattracting the best researchers and studentsto our centres of learning and howthey can be induced to remain. Workingwith stakeholders, discussing premisesfor companies and enterprise parks besidea campus, is an important element,which contributes to making both universitycampuses and research parksmore attractive. Campus plans are developedat least every fifth year to keep thecommon dialogue regarding our campusesalive.MARKET RENTSAn issue that has aroused discussionabout Akademiska Hus is the setting ofrents. Some groups feel that it is wrongthat Akademiska Hus applies a systemfor setting rents based on market conditions.Critics feel that universities andcolleges are paying rent that reduces abudget that would otherwise have beenused for education or research. In reality,it is a very simple principle that formsthe basis for the idea behind marketrents, i.e. the free market – the sameprinciple that is used when a price is setfor other things, such as the goods andservices that we buy.Akademiska Hus complies with itsremit from the Swedish government andis expected to charge competitive rents.The present market share is 63 per cent,which makes Akademiska Hus the leadingprovider of premises for universitiesand colleges. However, size also carriesresponsibility. In order to avoid distortingthe competition, it is important thatour rents and conditions are in line withthe rest of the market. Akademiska Husworks according to the same conditionsas, and in competition with, other propertycompanies. It is the aim of the ownerto allow Akademiska Hus to be one ofseveral operators on a market wherecustomers can negotiate a solution thatbest satisfies their needs. The aim is toachieve good profit growth, financialsustainability and financial capacity.Akademiska Hus must satisfy the demandslaid down by the owner regardingyield, equity ratio and dividend.It is Akademiska Hus’s hope andambition that the Company’s customersfeel that the pricing matches up to whatis being offered. The aim is to build, developand maintain modern environmentsfor research, education and innovation.The financial strength of AkademiskaHus means that universities and collegescan grow regardless of the economicclimate. This is a source of security forthe customers and a guarantee thatSweden will develop as a nation of knowledge.

70AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORTCorporate Governance ReportBest possible long-term growth in valueThe government is charged with the task of managing the country’s assets to ensure the best possiblelong-term growth in value and to ensure that specific societal assignments are carried out.GOVERNANCE STRUCTURESTATEN SOM ÄGAREANNUAL GENERAL MEETINGBOARD OF DIRECTORSGovernment ownership policy 2012FINANCE COMMITTEEREMUNERATION COMMITTEEAUDIT COMMITTEEExternalgovernance rules:IFRSCompanies ActSwedish CorporateGovernance CodeAnnual Accounts ActAccounting ActAKADEMISKA HUSInternal control:Rules of procedure, Board of DirectorsAllocation of responsibility and authorityManagement systemDecisions by the PresidentPoliciesDirectivesGuidelinesBusiness plan and budgetAkademiska Hus applies the Swedish Corporate GovernanceCode (the Code), including statements from theSwedish Corporate Governance Board (bolagstyrningskollegiet.se)and the guidelines laid down by the government inits ownership policy for state-owned companies (regeringen.se).Akademiska Hus is wholly owned by the Swedish governmentthrough the Ministry of Finance. The owner takes a long-termview of its ownership. The primary task for Akademiska Hus isto offer the country’s universities and colleges suitable buildingsfor education and research. The Company also has responsibilityas property manager for capitalising on the significanteconomic and cultural values that exist in the properties.The Company’s Articles of Association state that the Companyshall own and manage real estate and carry on building activities,building administration and operations compatible therewith,as well as own and manage chattels. Changes in the Articlesof Association are decided at the Annual General Meetingand must always be reported to the Companies Register.State-owned companies represent important values and areowned ultimately by the Swedish people, which requires open,professional provision of information. The companies shouldact as a role model with regard to sustainable enterprise –state-owned companies must carry on their operations in a waythat benefits sustainable development according to the BrundtlandCommission’s definition of sustainable enterprise, whichcovers the environment, human rights, working conditions,anti-corruption and business ethics as well as equality anddiversity. In the spirit of the Code, rules and routines are developedthat ensure transparency, a clear allocation of responsibilitybetween different Company bodies and the Board’s efficientdischarge of its duties.This Corporate Governance Report, which was adopted by theBoard on March 14, 2013, describes the structure and processesfor Group management and control.Owner objectivesThe owner’s financial objectives are as follows:• The return (profit after tax) on average equity should beequivalent to the five-year government bond interest rate plusfour percentage points viewed over a business cycle.• The Group’s dividend target is that the dividend shouldamount to 50 per cent of the profit after financial items,excluding unrealised changes in value, with a deduction forcurrent tax. The annual decisions regarding a dividend shouldtake into account the Company’s strategy, financial positionand other financial targets.• The Group’s equity ratio should be between 30 and 40 per cent.Return on equity was 6.8 per cent (9.2). On average, return onequity during the most recent five-year period was 5.9 per cent.During the five-year period, the average five-year governmentbond interest rate plus four percentage points was 6.4 per cent.DEVIATIONS FROM THE CODEThe Code has been prepared for companies with a spread ofownership. At such companies, the election committee is in thefirst instance a body for shareholders to prepare decisionsregarding appointments. For state-owned companies, the rulesregarding an election committee are replaced by principlesgoverning a structured nomination process according to thegovernment’s ownership policy.

AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORT 71Appointment of a Board of Directors and auditors (Code rules 2.1–2.7)Akademiska Hus does not apply the rules in the Code regardingthe appointment of a Board of Directors and auditors.Reporting of the independence of Board members (Code rule 4.5)Akademiska Hus does not apply the rules in the Code regardingthe reporting of the independence of Board members.Nomination process for Board members and auditorsThe owner adopts a structured nomination process in conjunctionwith the appointment of Board members and auditors. Thenomination process is conducted and co-ordinated by the stateownership unit at the Ministry of Finance. Members are selectedfrom a broad recruitment base.The nomination process is presented in the Government’sownership policy. Board membership requires a high level ofexpertise within relevant current business operations, businessdevelopment, industry know-how, financial issues, or in otherrelevant areas. In addition, there should be a strong sense ofintegrity and a capacity to act in the Company’s best interests.The composition of the Board should be such that the Boardalways has knowledge of the industry or other know-how that isrelevant to the Company. The composition should also be suchthat a balance is achieved in terms of background, age and gender.The Articles of Association do not contain any stipulationsregarding appointment or dismissal of Board members.ANNUAL GENERAL MEETINGAkademiska Hus follows the rules for issuing information relatedto corporate governance issues. The rules, as well as the time,date and venue of the Annual General Meeting, can be found onthe Company’s website.The Annual General Meeting must be held before April 30each year. At the Annual General Meeting, the shareholderselect, among others, the Board of Directors and auditors anddecide on discharge from liability for the Board of Directorsand the President. The Meeting decides on guidelines for remunerationto persons in leading positions and, where applicable,amendments to the Articles of Association. The Annual GeneralMeeting was held on April 25, 2012. The meeting was opened byEva-Britt Gustafsson, who was appointed to chair the proceedings.Also present were Martin Janhäll, President Kerstin LindbergGöransson, Vice President Anette Henriksson, authorisedpublic accountant Hans Warén and Carolin Åberg Sjöqvist,secretary, as well as other members of the Board.DECISIONS AT THE ANNUAL GENERAL MEETING• Adoption of the voting list. It was noted that the meeting had beenduly convened.• Adoption of the Annual Report, Sustainability Report, consolidatedaccounts, and the audit report for the 2011 financial year.• A decision regarding the payment of a dividend of SEK 1,245,000,000to the owner.• The Board of directors and the President were granted discharge fromliability for the 2011 financial year.• A decision to adopt the principles presented for remuneration and otherterms and conditions of employment for senior executives according tothe ‘Guidelines for terms and conditions of employment for seniorexecutives in government-owned companies’, passed by the Governmenton April 20, 2009.• Election of members of the Board of directors up to the end of thenext Annual General meeting. Election of auditors. decision regardingfees to the Board of directors and the auditors.BOARD OF DIRECTORSThe Board of Directors is ultimately responsible for the organisationof Akademiska Hus and management of its operations.The work of the Board is governed by the rules of procedureadopted by the Board of Directors each year. The rules of procedurelay down the Board’s working methods, instructions forthe President and instructions for the Board’s committees.The Board comprises eight members, elected at the AnnualGeneral Meeting. There are also two members who representthe employees in the Company. One of the members elected atthe Annual General Meeting, Marianne Förander, steppeddown from the Board and Leif Ljungqvist was elected. Othermembers were re-elected. Of the eight members elected at theAnnual General Meeting, one member is an employee at theSwedish Government Offices.The other duties of the Board of Directors are presented onpage 73 of the Annual Report.The Chairwoman of the Board leads the work of the Boardand represents the Board and the Company in dealings with theowner. The Chairwoman is also responsible for an evaluation ofthe work of the Board.The Board meets at least five times a year, of which one meetingshould be devoted to matters of a long-term, strategic nature. Extraordinarymeetings are held for specific matters as necessary. TheGroup’s auditors take part in at least one Board meeting during theyear and on one occasion, the Board meets the Company’s auditorwithout the President or other person from the Executive Managementbeing present. The work of the Board follows an annual cycleto ensure that the Board takes due account of all the areas ofresponsibility and attaches sufficient importance to key, strategicissues. As a rule, the following factors are discussed and dealt withat an ordinary meeting of the Board of Directors, see figure.BOARD OF DIRECTORS – WORKING CYCLE• Examination of the Rulesof Procedure• Approval of the Year-End ReportQ4Q1• Approval of the budget• Interim Report, Q3Q3Q2• Approval of the Annual Report• Approval of the Remuneration Policyfor presentation at the AnnualGeneral Meeting• Decision regarding the programme forthe Annual General Meeting andapproval of material for the Meeting• Interim Report, Q1• Interim Report, Q2• Annual evaluation of the SwedishCorporate Governance Code and other policies• Statutory meeting following the Annual GeneralMeeting• External analysis and strategy meeting

72AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORTCOMPOSITION OF THE BOARD OF DIRECTORS AND ATTENDANCE AT MEETINGSYear ofFinance Audit Remuneration Board Finance Audit RemunerationNamebirth Function Elected Committee Committee Committee meeting Committee Committee CommitteeEva-Britt Gustafsson 1950 chair 2007 chair — chair 10 of 10 3 of 3 — 4 of 4Olof Ehrlén 1949 member 2011 — chair — 10 of 10 — 6 of 6 —marianne Förander (out) 3 of 3 — 3 of 3 2 of 2Per Granath 1954 member 2005 member — — 5 of 10 3 of 3 — —leif ljungqvist (in) 1971 member 2012 — member member 7 of 7 — 3 of 3 2 of 2Gunnar Svedberg 1947 member 2009 — — member 8 of 10 — — 4 of 4maj-charlotte Wallin 1953 member 2004 — — — 10 of 10 — — —Pia Sandvik 1964 member 2011 member — — 9 of 10 2 of 3 — —Ingemar Ziegler 1947 member 2007 — member — 7 of 10 — 4 of 6 —Anders larsson 1963 member 2009 — — — 9 of 10 — — —Thomas Jennlinger 1956 member 2008 — — — 9 of 10 — — —Work of the Board of DirectorsThe Board held ten meetings during the year at which minuteswere taken. The attendance by the members of the Board of Directorsat the meetings and the main items on the agenda dealtwith during the year are presented in the tables.THE BOARD OF DIRECTORS MET TEN TIMES DURING 2012.THE MAIN ISSUES COVERED WERE:1. Year-End Report 2011. Report from committees. Report from the auditors.Annual Report 2011. Sustainability Report 2011. Investments.2.Ownership enquiry. dispute list.3.4.Interim Report, January-march 2012. Akademiska Hus 2.0.Investments. Acquisitions. dispute list.Examination of the rules of procedure, Instructions to the President,allocation of responsibility and authority and attestation instructions.Adoption of policy documents. Election of committees.5. EmTn programme. Investments.6. External analysis and strategy issues. Investments. Sales. dispute list.7.8.9.10.Interim report January-June 2012. decision regarding the mergerplan. Sales. Appointment of the Vice President. dispute list.Scientific council. Investments. Sales. Effect realisation.Akademiska Hus 2.0. Strategy work. dispute list.Interim report January-September 2012. Investments. Sales. Activitylog. Evaluation of the Board of directors. Recruitment.Business plan 2013. Investments. Plan for handling financial risks.Allocation of responsibility and authority.EVALUATION OF THE WORK OFTHE BOARD OF DIRECTORS IN 2012According to the Code, the Board of Directors evaluates thework of the Board and the President using a structured, systematicprocess. Evaluation takes place once a year with the aim ofdeveloping the working forms and efficiency of the Board ofDirectors. The Chairwoman of the Board leads the evaluationand reports to the Board. The most recent evaluation was presentedat the meeting of the Board of Directors in December,2012. The owner, through the Government Offices, is informedabout the results of the evaluation. The work of the GovernmentOffices related to the Board nomination process also includesan on going evaluation of the boards of all governmentownedcompanies. There is continuous evaluation of the work,composition and competence of the Board.BOARD COMMITTEESThe Board of Directors has appointed three committees fromwithin its number.• The tasks of the Finance Committee are to represent theBoard of Directors in ongoing issues related to financing, tosupport and follow up financing activities, to make an annualevaluation of the Finance Policy and to propose changes, andto evaluate, prepare and report on matters to be decided bythe Board.• The tasks of the Audit Committee, without otherwiseaffecting the responsibility and duties of the Board ofDirectors, are as follows:– To supervise the Company’s financial reporting.– With regard to the financial statements, monitor the efficiencyof the Company’s internal control systems, internalaudit and risk management.– Remain informed about the audit of the annual accountsand the consolidated accounts.– Examine and monitor the impartiality and independence ofthe auditor and in doing so devote particular attention if theauditor provides the Company with services other thanauditing services.– Assist in the preparation of proposals for the election ofauditors at the Annual General Meeting.• The tasks of the Remuneration Committee are to preparedecisions regarding terms and conditions for salaries andemployment for the President and the Executive Management;to monitor and evaluate the application of the guidelinesfor remuneration to senior executives, which will bedecided at the Annual General Meeting, along with the applicableremuneration structure and remuneration levels withinthe Company.The Group’s Director of Accounting and Finance, Treasurer,Planning Director, Vice President and President can attend themeetings in the capacity of presenter. The Board receives feedbackon the work of the committees. At each Board meetingthere is an examination of the minutes from the meetings ofeach of the committees.

AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORT73Standing, from the left; Gunnar Svedberg, Per Granath, Ingemar Ziegler, Maj-Charlotte Wallin, Eva-Britt Gustafsson, Olof Ehrlén, Pia Sandvik,Thomas Jennlinger, Anders Larsson and Leif Ljunqvist.BOARD OF DIRECTORSEVA-BRITT GUSTAFSSON, CHAIRBorn 1950. mBA. chair since 2007. President ofApoteksgruppen i Sverige Holding AB and Apoteksgruppeni Sverige AB. Previous positions:Bank director, nordbanken; President of VenantiusAB; President of Apoteket OmstruktureringAB. Other positions: member of the board ofSvenska Spel AB.OLOF EHRLÉNBorn 1949. mScEng. member since 2011. FormerPresident of ncc AB. Other positions: Boardmember of Wingroup AG; chair of Faveo managementAS; chair of the Town Planning SectorEthics committee.PER GRANATHBorn 1954. mScEng. member since 2005. Presidentand cEO of Humana AB. Former presidentof Intellecta AB, President of KF Fastigheter AB,Vice President of Scandiaconsult AB and VicePresident at Handelsbanken Securities. Otherboard positions: Board member of Svefa HoldingAB, Gustavia Fonder AB and Salktennis AB.THOMAS JENNLINGERBorn 1956. Employee representative (ledarna)since 2008. Operating manager at AkademiskaHus uppsala AB.ANDERS LARSSONBorn 1963. Employee representative (SEKO)since 2009. Operating engineer at AkademiskaHus Stockholm AB. Previous positions: Employeerepresentative (SEKO) Akademiska HusStockholm AB, 1998–2009.LEIF LJUNGQVISTBorn 1971. mBA. member since 2012. companymanager at the State Ownership unit at theministry of Finance. Previous positions: Stockmarket analyst Kaupthing Bank, nordiska Fondkommissionand Hagströmer & Qviberg. Otherassignments: Board member of Apoteket AB andAB Svensk Bilprovning. Previous assignments:Board member of Vassallen AB and AB Bostadsgaranti.PIA SANDVIKBorn 1964, Phd. member since 2011. Presidentof länsförsäkringar Jämtland. Other assignments:chair of the norrbotten Research counciland a member of the board of RISE AB, theStrategic Research council, Humlegården FastigheterAB, Ekonord Invest AB, and the IVAIndustry council. member of IVA. Former positions:Vice chancellor of luleå university ofTechnology and Pro Vice chancellor of midSweden university.GUNNAR SVEDBERGBorn 1947. Phd. member since 2009. Professorof Energy Technology. Previous positions includePresident of Innventia AB, Vice-chancellorof Gothenburg university and mid Swedenuniversity and deputy Vice chancellor of theRoyal Institute of Technology. Other positions:member of the board of Kemakta Konsult ABand mälardalen university. member of IVA andKVVS in Gothenburg.MAJ-CHARLOTTE WALLINBorn 1953. mBA. member since 2004. Presidentof AFA Försäkring. Former chief controller, businessarea manager and president of a subsidiarywithin nordea, Skandia, Jones lang laSalleand Stockholm county council. Other assignments:member of the chamber of commerceFund delegation, member of the board of theHeart and lung Foundation and a member ofthe Social Insurance Supervisory committee.INGEMAR ZIEGLERBorn 1947. BA. member since 2007. Formerpresident of AB Storstockholms lokaltrafik,locum AB, diösförvaltning, Stockholms markochlokaliseringsbolag. Finance Secretary, cityof Stockholm. Other assignments: member ofthe board of Infranord AB, Stockholms Konserthusand the clara Foundation.AUDITORSHANS WARÉN, DELOITTE ABBorn 1964. mBA. Auditor in charge at AkademiskaHus since 2010. Auditor in charge for,among others, Göteborg Energi, Higab Groupand Semcon. Former lead auditor at companiesin the Förvaltnings AB Framtiden Group and theSaab AB Group. He has been in the professionfor 25 years. He is an authorised public accountantand an elected auditor for 20 years.

74AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORTCOMPANY MANAGEMENT STRUCTUREBOARD OF DIRECTORSINTERNAL AUDITPRESIDENTAKADEMISKA HUS 2.0VICE PRESIDENTACCOUNTING AND FINANCEHUMAN RESOURCESITCORPORATE COMMUNICATIONSPURCHASING/PROCUREMENTTREASURYSUSTAINABILITYLAWPROPERTYSouthern Region Western Region Eastern Region Stockholm Region Uppsala Region Northern RegionCOMPANY MANAGEMENTThe Akademiska Hus vision is implemented each year in theform of a general Business Plan. The Business Plan, togetherwith policy documents, comprises the overall basis for controlof the Group.The Group is led by the President and the Executive Management.Support is available at the Head Office through aFunction Management Team. The Regional Directors, VicePresident, Director of Accounting and Finance, Human ResourcesDirector, Treasurer, Corporate Communications Directorand Senior Counsel report directly to the President.• The Executive Management comprises the President, VicePresident, the six Regional Directors, the Director of Accountingand Finance, the Corporate Communications Directorand the Human Resources Director. The Group Managementis a forum for the discussion of strategy and policy andfor the provision of advice to the CEO. The Executive Managementis also the steering committee for prioritised processes.• The Function Management Team comprises the Vice Presidentand central functions at the Head Office. The Function ManagementTeam is a forum for information, feedback of experienceand mutual advice on joint, strategic staff issues and also in issueswith a specific focus on the Head Office.The Parent Company’s units are responsible, among otherthings, for the Group’s financial statements, financing, propertyissues, communication, human resources, legal matters andplanning and other matters of an overall nature. The propertyarea includes IT, purchasing/procurement, sustainability andproperty.RegionsEach region has a regional management team. Investment mattersare initiated and prepared by the regional management andare then reviewed by the Executive Management. In the case ofmajor investments, a matter, after receiving the support of theExecutive Management, passes to the Board of Directors for adecision.AuditorsProcurement of auditors took place in 2010. At the 2012 AnnualGeneral Meeting it was decided to elect Deloitte AB as auditors

AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORT75Visualisation Centre C, Norrköpingfor the period up to the end of the 2014 Annual General Meeting,with authorised public accountant Hans Warén as auditor incharge. The fee to the auditors for the year is payable as billed.REMUNERATIONRemuneration and other terms and conditions of employmentfor persons in an executive position apply in accordance withthe Government’s ‘Guidelines for terms and conditions of employmentfor senior executives’.Principles for remuneration to the Board of Directors and senior executives• A fee is paid to the members of the Board of Directors accordingto a decision reached at the Annual General Meeting. Themembers of the Board of Directors who are employed withinthe Akademiska Hus Group and the Government Offices donot receive any fee for this work.• Payment for committee work was set at the 2012 AnnualGeneral Meeting.Payment to the President and other senior executives comprisesa basic salary and a pension. Pension expenses refer to the costcharged to the profit for the year. All amounts are given excludingsocial insurance charges and employer’s contribution. Paymentto the President is decided by the Board of Directors followinga recommendation from the Remuneration Committee.Payments to other senior executives are decided by the Presidentfollowing consultation with the Remuneration Committee.Remuneration comprises a basic salary and a defined contributionpension based on the ITP premiums according to a collectiveagreement. Akademiska Hus complies with the owner’sguidelines regarding terms and conditions of employment forsenior executives. To ensure compliance with the owner’sguidelines, an external enquiry was conducted during 2011. Theenquiry showed that Akademiska Hus is following the guidelines.No variable or bonus-based remuneration is paid. Salarysurveys are conducted to make a comparison with other propertycompanies. No changes were made regarding the principlesfor remuneration to the Board of Directors and senior executivesfor 2013.For a detailed description of remuneration, pensions, periods ofnotice, severance pay and fees to auditors, see Notes 12 and 13on pages 99–101.

76AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORTStanding, from the left: Cecilia Nielsen, Hans Antonsson, David Carlsson, Sten Wetterblad, Kerstin Lindberg Göransson, Lars Hagman, Bengt Keyser,Kristina Korsgren, Michael Walmerud, Gunnar Oders, Birgitta Hohlfält and Carolin Åberg Sjöqvist.EXECUTIVE MANAGEMENTKERSTIN LINDBERG GÖRANSSONBorn 1956. mBA. President and cEO of AkademiskaHus from 2011. Previous experience:Airport director, Swedavia Stockholm-ArlandaAirport. Accounting and Financing directorand Vice President of the Scandic Group. Otherpositions: chair of AB Svensk Bilprovning.MICHAEL WALMERUDBorn 1967. mSc. Vice President of AkademiskaHus. Employed 2012. Previous experience:President, Projektgaranti AB. Head of transactions,catella Swedebroker AB. Propertymanager, Postfastigheter AB. Project manager,ncc Fastigheter AB.HANS ANTONSSONBorn 1950. mScEng. Regional director uppsala.Employed 1996. Previous experience: PresidentAkademiska Hus i umeå/luleå; President umIFastighetsutveckling; Head of Property department,umeå municipal Authority; director andHead of Property Supply, umeå university.DAVID CARLSSONBorn 1976. mSc and mBA. Regional director,north. Employed 2003. Previous experience:Head of Property management and propertymanager, Akademiska Hus uppsala; Businessdeveloper, SP Production AB.BIRGITTA HOHLFÄLTBorn 1958. BA Soc. Admin. Regional director,Western Region. Employed 2005. Previous experience:Planning adviser, Akademiska Hus HeadOffice. Head of property supply and operatingmanager Karlstad university; Planning manager,Property department, Karlstad municipal Authority.Board appointments: member of the board ofthe Building management Issues Foundation.member of the board of Byggherrarna Sverige AB.STEN WETTERBLADBorn 1957. mScEng. Regional director, Stockholm.Employed 2008. Previous experience: Propertydirector, city of Stockholm; market Halldirector, city of Stockholm; Vice PresidentStockholm Parkering; Property manager KullenbergFastigheter i Stockholm AB; Site manager/Project manager Platzer Bygg AB. Other positions:chair of Stockholm life, Property Owners, Boardmember of Stockholm construction Association.BENGT KEYSERBorn 1947. mScEng. Acting Regional directorSouthern Region. Employed 1993.THOMAS RINGDAHLEmployed January 1, 2013. Previously heldmanagerial positions within Skanska.LARS HAGMANBorn 1953. mBA. Regional director, EasternRegion. Employed 2012. Previous experience:Business developer, Jm AB. company co-ordinator,president of subsidiary of Vattenfall AB.Regional manager, Partena Security AB.CAROLIN ÅBERG SJÖQVISTBorn 1968. llm. General counsel and secretaryto the Executive management, AkademiskaHus. Employed 2004. Previous experience: lawyer,Advokatfirman Glimstedt. Associate Judge ofAppeal, court of Appeal for Western Sweden.KRISTINA KORSGRENBorn 1969. Human resources specialist. HRdirector Akademiska Hus. Employed 2010.Previous experience: HR positions within theVolvo car corporation and Volvo Truck corporation.GUNNAR ODERSBorn 1956. mBA. director of Accounting andFinance, Akademiska Hus. Employed 2001. Previousexperience: Head of Accounting and Finance,Higab and Bostads AB Poseidon.CECILIA NIELSENBorn 1969. BA. director of communicationsAkademiska Hus. Employed 2012. Previousexperience: Head of corporate communicationsSP Sveriges Tekniska Forskningsinstitut AB.

AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORT77Group Corporate Governance ReportBoard of Directors internal control reportSchool of Business, Economics and Law,Gothenburg UniversityThe responsibility of the Board ofDirectors for internal control isgoverned by the Swedish CompaniesAct and the Swedish Corporate GovernanceCode. This report has been preparedin accordance with Section 6, sub-section6 of the Annual Accounts Act and is thuslimited to internal control of financialreporting. Internal control of financialreporting is a central component inAkademiska Hus corporate governance.INTERNAL CONTROL OFFINANCIAL REPORTINGInternal control of financial reporting atAkademiska Hus is a process that involvesthe Board, Executive Managementand personnel and is formulated in sucha way that it provides reasonable assurancethat the Company’s objectives areachieved and leads to reliable financialreporting.The presentation of Akademiska Husinternal control of financial reportingtakes place in accordance with COSO andis divided into:• Control environment• Risk assessment• Control activities• Information and communication• Follow-up.CONTROL ENVIRONMENTThe Board of Directors has overall responsibilityfor internal control of financialreporting. The Board of Directorshas adopted rules of procedure that clarifythe responsibility of the Board of Directorsand govern the internal work allocationwithin the Board of Directors and itscommittees. The basis for internal controlcomprises the control environmentwith the organisation, decision proceduresand responsibility as stated incontrol documents such as policies,guidelines and manuals.The overall Business Plan describesthe way Akademiska Hus works, dealswith customers, handles assets andaddresses the future. The Business Plancontains the vision, business concept andcore values as well as a description of theway the Company acts in different contexts.With the Business Plan as a basis,a number of decisions, policies, directivesand guidelines are drawn up for certainstrategic areas within Akademiska Hus,such as property valuation, financing,investment, accounting and reporting.Manuals and descriptions of routines areavailable for each area. Guidelines forfinancial reporting are updated in theevent of a change in legal requirements,stock exchange listing requirements and/or accounting standards.Akademiska Hus has a structuredmanagement process that containsstrategy, planning and follow-up processes.The joint business plan includes the strategicobjectives towards which the Groupis guided. The strategy process includesan external analysis, analysis of customers,locations, market segments, financingand so forth. The Company has processesin place to prevent and discover irregularitiesthat could impact on the Company’sfinancial statements.In 2012, work commenced to producea code of conduct for Akademiska Hus.

78AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORTBoard of Directors internal control report, continuedCONTROL ACTIVITIESControl activities limit identifiedrisks and ensure correct, reliablefinancial reporting and processefficiency.The control activities include bothoverall and detailed controls. The aimis to prevent, discover and correcterrors and deviations.The Akademiska Hus responsibilityand authorisation procedure includesdecision levels for differentinvestment amount limits.The most material risks identifiedregarding financial reporting arehandled using control structures. Therisks, apart from those that refer tothe financial statements, are accepted,mitigated or eliminated. The controlstructures must ensure both efficiencyin Group processes as well as goodinternal control and are based on theGroup’s minimum requirements forgood internal control in definedessential processes. With the aid ofstandardised reporting routines, aGroup Finance Handbook and adoptedrules of procedure, errors and deviationsshould be prevented, discoveredand corrected. For key processes,including those for the annual accountsand reporting, both risks and controlshave been documented in the processdescriptions. Within each IT system,there are a number of inbuilt controls.Process descriptions, reporting instructionsand the Financial Handbookare evaluated and updated eachyear.RISKASSESSMENTCONTROLACTIVITIESINFORMATION &COMMUNICATIONFOLLOW-UPRISK ASSESSMENTRisk assessment aims to identify andevaluate the most material risks thataffect financial reporting.In the risk assessment, items areidentified where the risk of materialerror is greatest, i.e. where the values inthe transactions are high or where theprocess is extremely complex and thereis a need for strong internal control.Identified risk areas are:• Property valuation. The propertyvaluation process is based on followinghow the property market develops.Akademiska Hus checks frequentlywith external valuers. The valuationparameters used are dealt with by theAudit Committee and the Board.• Project operations. Akademiska Hushas wide-reaching operations involvinglarge, complex projects. Projectreviews take place regionally and centrally.There is a decided allocation ofresponsibility between the Companyand Board level. An Investment Policydecided by the Board of Directors is inplace aimed, among other things, atclarifying the risks to be assessed inconjunction with each investmentproject.• Financing operations. The AkademiskaHus back-office and accounting function,which is organisationally separate fromthe Treasury Department, examines andcontrols outcomes and reports from theTreasury Department and checks compliancewith the mandates granted in theFinance Policy in respect of counterparty,market, liquidity and currencyrisks. The basis for the examinationcomprises mainly reports from thefinance system.• IT operations. For the AkademiskaHus five strategic objectives there is adescription from September 2012 ofhow IT will contribute to achievingsuccess. This involves everything frominternally used joint concepts, processesand tools to sharing informationwith customers and partners.The guidelines that have been decidedshow how IT operations are to be controlled,how the interaction betweenoperations and IT will proceed andhow services are to be provided. Thecontrol model comprises three roles:management, operations and supplier,which will work together to simplifyand ensure that decisions are madequickly. A committee has been formedto provide support, the CIO Board,charged with the task of driving thelong-term direction for IT and controllingthe annual IT strategy planning.A thorough risk assessment was madeduring the year. The Board of Directorshas overall responsibility for approvingand evaluating the final risk assessment.

AKAdEmISKA HuS 2012CORPORATE GOVERNANCE REPORT79INFORMATION AND COMMUNICATIONExternal financial information is publishedin direct association with theBoard meeting in question. In the caseof interim reports, this takes place onthe website and in the case of the AnnualReport, a printed publication is alsoproduced. Other information channels,apart from the Board meetings, arecommittees appointed by the Board,meetings of the Executive Managementand other information meetings.The intranet contains, among otherthings:• Directives and guidelines for areassuch as property valuation• Responsibility and authorisation procedures• Attestation instructions• Organisation of the accounting functions• Reporting and accounting instructions• Time schedules for reports and auditsThe financial reporting takes placethrough a common reporting systemwith a common reporting package. Allreporting units use the same accountingplan/code plan and the same accountingsystem.Within the Company, employeesmeet regularly within the establishedprocesses at network meetings in orderto develop a common view on differentissues. Systems and routines are inplace to provide the Board and theExecutive Management with reports inrelation to established objectives.FOLLOW-UPOngoing follow-up and evaluation takeplace to ensure that internal control isappropriate and effective based on establishedpolicies, directives and guidelines.Shortcomings in the system mustbe reported to an immediate superior toensure that an improvement can bemade.At each Board meeting, the Boardreceives financial information and ananalysis as well as a report from themost recent meetings of the differentcommittees. The financial statementsare followed up quarterly and with ayear-end report.The Audit Committee follows upaudit matters and more extensivematters of principle with regard tofinancial reporting, including propertyvaluation.The management process includes thefollow-up process. Here the strategicobjectives, KPIs , financial results etc.are followed, such as reports that containa budget, earlier outcomes, key figures,deviations and textual comments. AkademiskaHus has joint finance and humanresource units. These units, which havemainly transaction-intensive duties,assure a control function in relation toregional core operations, as they areorganisationally separate. At the turn ofthe year 2012/2013, Akademiska Hus implementeda new accounting and financesystem and new accounting processes.The new financial system will providegreater potential for operational followupand control and better scope for makingcomparisons.In addition to internal controls,recommendations by the auditors aretaken into account. These recommendationsare followed up and action is taken.The follow-up of processes and qualityis a separate process at Akademiska Hus.Previously, Akademiska Hus did nothave an internal audit function accordingto Code 7.4. In 2013, an internal auditorwill be employed. The internal auditorwill be commissioned by the Board ofDirectors to conduct an independentexamination of the Company’s internalcontrol system. The internal auditor willalso examine, support and challengeefficiency in different processes todetermine whether operations are beingrun as intended based on the owner’sobjectives and requirements. The auditassignment and risk assessments will becarried out in an independent, objectivemanner. Organisationally, the internalauditor will report to the Board andadministratively will report directly tothe President.The Board of Directors examinesinterim reports and the year-end reportbefore publication.It is the opinion of the Board of Directorsthat the follow-up that is reportedaccording to this document is sufficientto ensure effective internal control offinancial reporting.

80Contents – Financial statementsYear in brief 81Proposed allocation ofunappropriated earnings 82Income Statements 83Consolidated Statement ofComprehensive Income 84Balance Sheets 85Changes in Equity 87Cash Flow Statements 89Notes 90Audit Report 118

AKAdEmISKA HuS 2012FINANCIAL REPORTS; YEAR IN BRIEF81Year in briefGROUPIncomeThe Group’s turnover for 2012 was SEK 5,511 million (5,378).Of this, rental income accounted for SEK 5,265 million (5,116).The level of income was up slightly on the previous year. Theincrease can be attributed largely to completion of new constructionand redevelopment projects and index-linked rises.Profit• The net operating profit was SEK 3,585 million (3,389) andthe net operating profit ratio remained largely unchanged at65 per cent (63). The cash flow in property operations is verystable.• Operating profit before net financial items totalled SEK 3,227million (3,704). Property management is developing positivelyand profits are stable. Property management income increasedby SEK 133 million and property managementexpenses decreased by SEK 64 million. Changes in value inproperties have had a negative effect on profit of SEK -291million compared to 2011, when the change in value wasSEK 361 million.• Net financial income and expense amounted to SEK -682million (-452).• Pre-tax profit was SEK 2,546 million (3,252).Property valuesThe Group makes use of an internal valuation model, whichforms the basis for setting the fair value. This value wasSEK 54,677 million (52,071).InvestmentsNet investments in properties and new construction in progressin 2012 amounted to SEK 2,762 million (2,137). A number ofmajor projects were completed in 2012, including the BiomedicalCentre and the Soil-Water-Environment Centre, both locatedin Uppsala.SalesSales of properties during 2012 amounted to SEK 146 million(117).Sales for the year refer to just over 16,000 square metres ofthe Group’s total property holdings of around 28,000 squaremetres in Kalmar.Cash flowThe Group’s cash flow from current operations totalledSEK 2,127 million (2,017). Investments totalled SEK -2,388million (-1,898), which generated cash flow after investmentsof SEK -261 million (119). Cash flow from financing totalledSEK -1,082 million (3,779). Cash flow for the year amountedto SEK -1,343 million (3,897).Environmental impactEnvironmental impact caused by buildings and their operationis extremely moderate within Akademiska Hus. The greatestsource of environmental impact, albeit indirect, is energy usefor the operation of buildings and customers’ operations. Energyuse is reported separately in the Sustainability Report. A smallnumber of facilities within the Group require a permit or needto be reported to a supervisory authority to be used. Thesefacilities have been reported and applications for permits (asrequired) have been submitted to the supervisory authoritiesconcerned and have been granted. The facilities in question areas follows:Two boilers for combustion technology research, two boilersfor heating and power generation, geothermal heating pumps,seawater and ground source heating/cooling, extraction ofgroundwater for cooling purposes, sewage facilities and groundstorage of heating and cooling energy.The Group’s dependence on facilities requiring permits andthose carrying reporting obligations is of minor importancePA R ENT COMPA N YIncome and profitIn December, a merger took place of the subsidiaries (regionalcompanies) which own and manage the properties within theGroup. The merger took place in accordance with BFNAR1999:1, whereupon the consolidated value method was applied.The Parent Company’s income for 2012 was SEK 5,627 million(129). Of this amount, SEK 5,510 million is attributable to thesubsidiaries that were included in the merger. Of this amount,revenue from regional companies amounted to SEK 0 million(116). Profit before financial items was SEK 2,256 million (-26).Net interest income and expense was SEK -790 million (911),including dividends from regional companies totalling SEK 0million (765). The profit after financial items was SEK 1,467million (884), of which SEK 465 million is attributable to thesubsidiaries that were included in the merger.Investment in machinery and equipment totalled SEK2 million (5).Equity amounted to SEK 6,243 million compared to thefigure of SEK 5,617 million at the turn of the year. Equityincludes additional equity resulting from the merger totallingSEK 859 million.Share capital comprises 2,135,000 shares with a par value ofSEK 1,000 per share and one (1) vote per share.

AKAdEmISKA HuS 201282 FINANCIAL REPORTS; PROPOSED ALLOCATION OF UNAPPROPRIATED EARNINGSProposed allocation of unappropriated earningsProposed allocation of unappropriated earningsAccording to the owner’s financial objectives for AkademiskaHus, the dividend shall be 50 per cent of the profit after financialitems, excluding unrealised changes in value, with a deductionfor actual tax. When deciding a dividend, considerationshould be given to the Group’s capital structure and capital requirements.The other financial targets are that the equity ratioshould be between 30 and 40 per cent and that the return onequity should be equivalent to the average five-year governmentbond interest rate plus four percentage points. The averageyield on equity over five years was 5.9 per cent whilst thetarget was 6.4 per cent. During 2012, the equity ratio was 46.1per cent for the Group and 17.1 per cent for the Parent Company.After the proposed dividend, the equity ratio is 43.9 per cent forthe Group and 13.4 per cent for the Parent Company. The owner’sequity ratio target will be achieved even after the proposeddividend.Available for allocation at the Annual General Meeting:Retained earnings SEK 965,835,552Profit for the year SEK 1,007,201,818Total SEK 1,973,037,370The Board of Directors and President propose that the profit beallocated in such a way that SEK 1,355,000,000 (see table below)is paid to the shareholder and SEK 618,037,370 is carried forward.For details of the financial results and the financial positionin general, reference can be made to the following financialstatements.Statement by the Board of Directors pursuantto Section 18, sub-section 4 of the Companies ActThe Board of Directors is of the opinion that the Company’sliquidity can be maintained securely. On observance of therelationship between the Company’s assets, liabilities and equity,and with consideration given to profit forecasts and investmentrequirements as of this date, we believe that the proposed dividendis justifiable in the light of the demands that the nature,extent and risk of operations make on the amount of equity.The proposed dividend is thus justifiable in the light of theCompany’s consolidation requirements, liquidity and positionin general.The dividend does not affect the Company’s capacity to dischargeits short-term and long-term obligations or to implementnecessary investments. It is also the opinion of the Board ofDirectors that the Company’s financial position, in the light ofthe proposed dividend, is secure for the creditors. Nor can theBoard of Directors find any other circumstances that indicatethat the dividend ought not to be paid in accordance with theproposal presented by the Board of Directors. The proposedvalue transfer can thus be justified in the light of what is statedin Section 17, sub-section 3, paragraphs 2–3 of the CompaniesAct.PROFIT USED AS BASIS FOR CALCULATION OF DIVIDEND, SEK MINCOME STATEMENTS 2012OutcomeUnrealiseditemsProfit used forcalculation ofdividendIncome for property management 5,511 5,511Property management expenses -1,926 -1,926Net operating income 3,585 3,585changes in value, properties -291 291 0central administration costs -66 -66Profit before financial items 3,228 291 3,519Total, financial items -682 230 -452Profit before tax 2,546 521 3,067Tax/current tax 601 -958 -357Profit after tax 3,147 -437 2,710dividend, 50 per cent of the profit 1,355available for payment of a dividendThe dividend for 2011 was SEK 1,245 million.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; INCOME STATEMENTS83Income StatementsGROUPPARENT COMPANYAmounts in SEK 1,000 Note 2012 2011 2012 2011IncOmE FROm PROPERTY mAnAGEmEnT 6Rental income 8 5,265,220 5,115,849 5,265,220 —Other property management income 9 246,201 262,336 362,007 128,609Total property management income 5,511,421 5,378,185 5,627,227 128,609PROPERTY mAnAGEmEnT EXPEnSESOperating costs 11 -869,548 -885,161 -866,555 —maintenance costs -564,078 -603,436 -564,078 —Property administration 11 -280,979 -268,330 -268,568 -110,229Other property management expenses 10 -211,569 -232,621 -316,170 —Total property management expenses 7 -1,926,174 -1,989,548 -2,015,371 -110,229NET OPERATING PROFIT 3,585,247 3,388,637 3,611,856 18,380depreciation and impairments as well as reversedimpairments in property management— — -1,288,196 —changes in property values, positive 1,204,082 1,913,177 — —changes in property values, negative -1,495,287 -1,552,652 — —Total changes in property values 6, 18 -291,205 360,525 — —central administration costs 7 -66,817 -45,109 -66,817 -44,559PROFIT/LOSS BEFORE FINANCIAL ITEMS 6, 12, 13, 31 3,227,224 3,704,053 2,256,843 -26,179Financial income 285,981 300,786 285,981 1,723,275Financial expense -967,625 -752,980 -1,076,089 -812,675Total, financial items 14, 30, 31 -681,644 -452,194 -790,108 910,600PROFIT AFTER FINANCIAL ITEMS 2,545,580 3,251,859 1,466,735 884,420Appropriations 15 — — -188,303 -26,971PROFIT BEFORE TAX 2,545,580 3,251,859 1,278,432 857,449Taxes 16 601,228 -857,984 -271,230 -26,236NET PROFIT FOR THE YEAR 17 3,146,808 2,393,875 1,007,202 831,213Of which attributable to the shareholder in the Parent company 3,146,808 2,393,875

AKAdEmISKA HuS 201284 FINANCIAL REPORTS; CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEConsolidated Statements of Comprehensive IncomeGROUPPARENT COMPANYAmounts in SEK 1,000 Note 2012 2011 2012 2011NET PROFIT FOR THE YEAR 3,146,808 2,393,875 1,007,202 831,213Other comprehensive incomeResult from cash flow hedges 29 38,732 -132,833 38,732 -132,833Tax attributable to items reportedunder other comprehensive income -1,201 25,733 -1,201 25,733cash flow hedges, net after tax, 29dissolved against profit or loss -33,273 34,987 -33,273 34,987Total, other comprehensive income 4,258 -72,113 4,258 -72,113COMPREHENSIVE INCOME FOR THE YEAR 3,151,066 2,321,762 1,011,460 759,100Of which attributable to the shareholder in the Parent company 3,151,066 2,321,762

AKAdEmISKA HuS 2012FINANCIAL REPORTS; BALANCE SHEETS85Balance SheetsGROUPPARENT COMPANYAmounts in SEK 1,000 Note 31-12-2012 31-12-2011 31-12-2012 31-12-2011ASSETSnon-current assetsTangible non-current assetsProperties 18 54,677,026 52,070,700 29,452,496 —Equipment and fittings 20 23,089 23,609 23,089 6,540Total tangible, non-current assets 54,700,115 52,094,309 29,475,585 6,540Financial assetsShares in Group companies 21 — — 650 1,564,200Receivables from Group companies 27 — — — —Other investments held as non-current assets — — — —derivatives 22, 35 1,866,547 2,828,001 1,866,547 2,828,001Other non-current receivables 23, 27 433,228 457,013 433,228 15Total financial assets 2,299,775 3,285,014 2,300,425 4,392,216deferred tax 16 — — — —TOTAL NON-CURRENT ASSETS 56,999,890 55,379,323 31,776,010 4,398,756CURRENT ASSETScurrent receivablesRental income and accounts receivable 24 288,406 379,763 288,406 —Receivables from Group companies — — 14 21,338,073current prepaid tax 16 144,489 68,270 144,489 62,860Other receivables 25 417,568 215,335 418,171 3,857Prepaid expenses and accrued income 26 152,925 161,888 152,925 42,174derivatives 22, 35 382,318 278,620 382,318 278,620Total current assets 27 1,385,706 1,103,876 1,386,323 21,725,584CASH AND CASH EQUIVALENTScurrent investments 35 2,697,102 4,416,457 2,697,102 4,416,457cash and bank balances 549,512 173,150 549,357 172,942Total cash and cash equivalents 28 3,246,614 4,589,607 3,246,459 4,589,399TOTAL CURRENT ASSETS 4,632,320 5,693,483 4,632,782 26,314,983TOTAL ASSETS 6 61,632,210 61,072,806 36,408,792 30,713,739

AKAdEmISKA HuS 201286 FINANCIAL REPORTS; BALANCE SHEETSBalance SheetsGROUPPARENT COMPANYAmounts in SEK 1,000 Note 31-12-2012 31-12-2011 31-12-2012 31-12-2011EQUITY AND LIABILITIESEquityEquity attributable to the Parent company's shareholder:RestrictedequityShare capital 2,135,000 2,135,000 2,135,000 2,135,000Other contributed equity/Share premium reserve 2,134,950 2,134,950 — —Statutory reserve — — 2,134,950 2,134,950non-restrictedequityHedge reserve 29 -34,011 -38,270 — —Fair value reserve 29 — — -34,011 -38,270Retained earnings, including profit for the year 24,190,774 22,288,969 — —Retained earnings (in the Parent company) — — 999,846 554,181Profit for the year (in the Parent company) — — 1,007,202 831,213TOTAL EQUITY 28,426,713 26,520,649 6,242,987 5,617,074untaxed reserves 15 — — 3,246,084 392,782LIABILITIESnon-current liabilitiesdebt 30 18,292,855 19,349,933 18,292,855 19,155,836derivatives 22, 35 416,080 379,012 416,080 379,012deferred tax 16 6,597,373 7,553,703 343,024 16,274Other liabilities 32 57,113 48,634 57,113 -Pension provisions and similar obligations 31 287,374 272,690 253,337 76,349Total non-current liabilities 25,650,795 27,603,972 19,362,409 19,627,471current liabilitiesAccounts payable 414,707 301,472 414,707 12,981liabilities to Group companies — — 2,219 13,328Income tax liabilities 16 — — — —Other liabilities 32 1,119,820 1,426,246 1,120,211 1,268,217Accrued expenses and prepaid income 33 1,711,948 1,729,234 1,711,948 298,202debt 30 4,175,984 3,336,760 4,175,984 3,329,211derivatives 22, 35 132,243 154,473 132,243 154,473Total current liabilities 7,554,702 6,948,185 7,557,312 5,076,412TOTAL LIABILITIES 6, 34 33,205,497 34,552,157 26,919,721 24,703,883TOTAL EQUITY AND LIABILITIES 61,632,210 61,072,806 36,408,792 30,713,739MEMORANDUM ITEMSPledged assets 38 270,370 118,916 270,370 118,916contingent liabilities 39 3,445 3,278 3,445 168,189

AKAdEmISKA HuS 2012FINANCIAL REPORTS; CHANGES IN EQUITY87Changes in equityAmounts in SEK 1,000 Note Share capitalATTRIBUTABLE TO THE SHAREHOLDER IN THE PARENT COMPANYOther contributedcapitalHedgereserveRetainedearningsTotalequityGROUPOPENING BALANCE AS OF JANUARY 1, 2011 2,135,000 2,134,950 33,843 21,102,094 25,405,887comprehensive incomeProfit for the year — — — 2,393,875 2,393,875Other comprehensive incomeProfit from cash flow hedges 29 — — -72,113 — -72,113Total, other comprehensive income — — -72,113 2,393,875 2,321,762Transactions with shareholdersdividend — — — -1,207,000 -1,207,000Total transactions with shareholders — — — -1,207,000 -1,207,000CLOSING BALANCE AS OF DECEMBER 31, 2011 2,135,000 2,134,950 -38,270 22,288,969 26,520,649comprehensive incomeProfit for the year — — — 3,146,808 3,146,808Other comprehensive incomeProfit from cash flow hedges 29 4,258 — 4,258Total, other comprehensive income — — 4,258 3,146,808 3,151,066Transactions with shareholdersdividend — — — -1,245,000 -1,245,000Total transactions with shareholders — — — -1,245,000 -1,245,000CLOSING BALANCE AS OF DECEMBER 31, 2012 2,135,000 2,134,950 -34,011 24,190,774 28,426,713Other contributed capital comprises a share premium reserve of KSEK 2,134,950 (applies to both the opening and closing balance in conjunction with all theabove reporting periods).

AKAdEmISKA HuS 201288 FINANCIAL REPORTS; CHANGES IN EQUITYChanges in equityRESTRICTED EQUITYAmounts in SEK 1,000 Note Share capital Statutory reserveFair valuereserveNON-RESTRICTED EQUITYRetainedearningsTotal equityPARENT COMPANYOPENING BALANCE AS OF JANUARY 1, 2011 2,135,000 2,134,950 33,843 1,761,180 6,064,972comprehensive incomeProfit for the year — — — 831,213 831,213Other comprehensive incomeProfit from cash flow hedges 29 — — -72,113 — -72,113Total, other comprehensive income — — -72,113 831,213 759,100Transactions with shareholdersdividend — — — -1,207,000 -1,207,000Total transactions with shareholders — — — -1,207,000 -1,207,000CLOSING BALANCE AS OF DECEMBER 31, 2011 2,135,000 2,134,950 -38,270 1,385,394 5,617,074comprehensive incomeProfit for the year — — — 1,007,202 1,007,202Other comprehensive incomeProfit on cash flow hedges 29 — — 4,258 — 4,258Total, other comprehensive income — — 4,258 1,007,202 1,011,460mergermerger difference — — — 859,449 859,449Total, merger — — — 859,449 859,449Transactions with shareholdersdividend — — — -1,245,000 -1,245,000Total transactions with shareholders — — — -1,245,000 -1,245,000CLOSING BALANCE AS OF DECEMBER 31, 2012 2,135,000 2,134,950 -34,011 2,007,048 6,242,987Share capital is divided into 2,135,000 shares at a par value of SEK 1,000 with one (1) vote per share (applies to both the opening and closing numberof shares in conjunction with all the above reporting periods).

AKAdEmISKA HuS 2012FINANCIAL REPORTS; CASH FLOW STATEMENTS89Cash Flow StatementsGROUPPARENT COMPANYAmounts in SEK 1,000 Note 2012 2011 2012 2011cuRREnT OPERATIOnSProfit after financial items 40 2,545,580 3,251,859 1,466,735 884,420Adjustment for items not included in the cash flow 41 475,616 -520,337 -190,806 -102,649Tax paid -432,523 -439,740 -32,193 -42,132CASH FLOW FROM CURRENT OPERATIONSBEFORE CHANGES IN WORKING CAPITAL2,588,673 2,291,782 1,243,736 739,639cASH FlOW FROm cHAnGES In WORKInG cAPITAlIncrease (-)/decrease (+) in current receivables -101,913 -172,242 -1,270,253 -671,343Increase (+)/decrease (-) in current liabilities -360,206 -102,299 12,320 76,295CASH FLOW FROM CURRENT OPERATIONS 2,126,554 2,017,241 -14,197 144,591InVESTmEnTS 42Investment in shares in Group companies -50 — — —Investment in properties -2,503,064 -1,916,774 — —Sale of properties 118,049 84,683 — —Investment in other non-current assets -8,982 -12,549 -2,498 -4,912Sale of other non-current assets 1,005 72 — —Increase (-)/decrease (+) in non-current receivables 5,090 -53,847 -18,697 -28,228CASH FLOW FROM INVESTMENTS -2,387,952 -1,898,415 -21,195 -33,140FInAncInGRaising of interest-bearing debt, excluding refinancing 163,405 4,985,633 -62,548 4,993,106dividend paid -1,245,000 -1,207,000 -1,245,000 -1,207,000CASH FLOW FROM FINANCING -1,081,595 3,778,633 -1,307,548 3,786,106CASH FLOW FOR THE YEAR -1,342,993 3,897,459 -1,342,940 3,897,557Opening cash and cash equivalents 4,589,607 692,148 4,589,399 691,842closing cash and cash equivalents 28 3,246,614 4,589,607 3,246,459 4,589,399

AKAdEmISKA HuS 201290 FINANCIAL REPORTS; NOTESNOTES1 General informationAkademiska Hus AB (publ) (registration number 556459-9156) is alimited liability company registered in Sweden. The Company’sregistered office is in Gothenburg. Akademiska Hus is whollyowned by the Swedish Government.The Company is the parent company in the Akademiska HusGroup, the principal task of which is to own and manage universityand college properties. In December, a merger took place with thesubsidiaries (regional companies) that own and manage the propertiesin the Group. The merger took place in accordance withBFNAR 1999:1, whereupon the consolidated value method wasapplied. See also Note 5.The Parent Company’s functional currency is SEK.All amounts are in SEK 1,000 unless stated otherwise.2 Adoption of the annual reportThe Annual Report and consolidated accounts were adopted bythe Board and approved for publication on March 14, 2013. TheIncome Statement and Balance Sheet for the Parent Company andthe Group will be the subject of adoption at the Annual GeneralMeeting on April 25, 2013.3 General accounting principlesThe consolidated accounts have been prepared in accordance withthe EU-endorsed International Financial Reporting Standards(IFRS) as well as interpretations by the IFRS InterpretationsCommittee (IFRIC) as of December 31, 2012. The Group also appliesSwedish Financial Reporting Board recommendation RFR 1,Supplementary Rules for Consolidated Financial Statements,which specifies the supplements to the IFRS – informationrequired pursuant to the rules in the Annual Accounts Act.In the Annual Report, items have been valued at cost exceptwith regard to revaluation of properties, financial assets and liabilities(including derivatives) valued at fair value in the BalanceSheet. The following is a description of the more material accountingprinciples that have been applied.New and amended IFRS standards and interpretations 2012The following amended standards and new interpretations cameinto effect in 2012:STANDARD/INTERPRETATIONFinancial Instruments: disclosure (disclosures inAMENDMENT TO IFRS 7conjunction with the transfer of financial assets)Income taxes (deferred tax: Recovery of underlyingAMENDMENT TO IAS 12assets)New and amended standards and interpretations have not hadany impact on the Group’s financial statements.New and amended standards that have not yet come into effectThe International Accounting Standards Board (IASB) has issuedthe following new and amended standards, which had not yetcome into effect at the time of publication of this Annual Report.WILL BE APPLIED FORTHE FINANCIALSTANDARDYEAR COMMENCING:Amendments to IAS 1, Financial StatementsJuly 1, 2012 or later(Presentation of items in other comprehensive income)Amendments to IAS 19 Remuneration to Employees January 1, 2013 or laterIFRS 13 Fair Value measurementJanuary 1, 2013 or laterImprovements to the IFRS 2009–2011 cycle* January 1, 2013 or laterAmendments to IFRS 7 Financial Instruments:disclosure (Offsetting of financial assets andfinancial liabilities)Amendment to IAS 32 Financial instruments:Presentation (Offsetting of financial assets andfinancial liabilities)IFRS 10 consolidated Financial StatementsIFRS 11 Joint ArrangementsIFRS 12 disclosure of Interests of Other EntitiesAmendments to IFRS 10, IFRS 11 andIFRS 12 (transitional provisions)**January 1, 2013 or laterJanuary 1, 2014 or laterJanuary 1, 2014 or laterJanuary 1, 2014 or laterJanuary 1, 2014 or laterJanuary 1, 2014 or laterAmendments to IAS 27 Separate Financial Statements January 1, 2014 or laterAmendments to IAS 28 Investments in AssociatesJanuary 1, 2014 or laterand Joint VenturesInvestments, Entities (Amendments to IFRS 10,January 1, 2014 or laterIFRS 12 and IAS 27)*IFRS 9 Financial Instruments and subsequentamendments to IFRS 9 and IFRS 7*January 1, 2015 or later* not yet approved for application in the Eu.** not yet approved for application in the Eu. IFRS 10, IFRS 11, IFRS 12, IAS 27 and IAS28 come into effect according to IASB from the financial year commencing January1, 2013 although within the Eu, they will come into effect from the financial yearcommencing January 1, 2014 or later.The IFRS Interpretations Committee has issued the following newinterpretation (IFRIC), which have not yet come into effect.WILL BE APPLIED FOR THEINTERPRETATIONFINANCIAL YEAR COMMENCING:IFRIc 20 Stripping costs in the ProductionJanuary 1, 2013 or laterPhase of a Surface mineAmendments to IAS 19 change the reporting of defined benefitpension schemes and severance pay. The most significant changerefers to the reporting of defined benefit obligations and managementassets. The amendments require that actuarial gains andlosses be reported immediately under other comprehensive income,which means that the corridor method is removed. Interestexpense and expected yield on investment assets are replaced with‘net interest income’, which is calculated net using the discountrate for the defined benefit pension liability or asset. When theGroup begins applying the amendments in IAS 19, it will cease toapply UFR 4 Reporting of special employer’s contribution andyield tax, which have been withdrawn by the Swedish FinancialAccounting Standards Council. Instead, the Group will report thespecial employer’s contribution according to the rules in IAS 19,which means that the actuarial assumptions that are to be madewhen calculating defined benefit pension schemes will also includetaxes on pension benefits.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES91In accordance with the revised IAS 19, the revised pension liabilitywill increase by approximately KSEK 120,000 in the opening balancefor 2013, as the unreported part of the pension liability canno longer be reported outside the Balance Sheet. In the openingbalance for 2013, which is reported according to the addendum inIAS 19, equity will be reduced net by approximately KSEK 212,000with account taken of deferred tax.The executive management is currently investigating how othernew and amended standards and interpretations will affect theGroup’s financial Statements during the period they are appliedfor the first time.Consolidated accountsThe consolidated accounts cover the Parent Company and companiesover which the Parent Company has a controlling influence.A controlling influence means a right to formulate strategies forfinancial activities with the aim of securing financial advantages.The existence and effect of potential voting rights that can currentlybe exercised or converted are taken into account whenassessing whether the Group can exercise a controlling influenceover another company. All subsidiaries are wholly owned. Thesubsidiaries are included in the consolidated accounts with effectfrom the point at which the controlling influence is achieved andthey are not included at the point at which the controlling influenceceases.The consolidated year-and accounts have been prepared accordingto the acquisition method, which means that the Parent Company’scarrying value of shares in subsidiaries is eliminatedagainst equity, including the capital share of untaxed reserves inthe subsidiaries.Segment reportingOperating segments are reported in a way that concurs with theinternal report presented to the highest-ranking executive decisionmaker.The highest-ranking executive decision-maker is the functionthat is responsible for allocating resources and assessing theresults of operating segments. At Akademiska Hus, this functionhas been identified as the CEO, who is also the President of theParent Company.The Group is organised and controlled based on a geographicaldivision into markets/administration areas. The geographical areas(segments) are exposed to similar risks and opportunities, whichdiffer compared to other geographical areas (segments). Geographicalareas concur with each regional company and thusconstitute the segments for which reports are presented.Segments are consolidated according to the same accountingprinciples as for the Group as a whole.Revenue recognitionIn its capacity as property owner, the Group has signed operationallease agreements with customers and consequently the Group’s reportedincome mainly comprises rental revenue. Where applicable,reported rental revenue has been reduced by the value of discountsgranted to tenants. In those cases where lease agreementsresult in reduced rent during a certain period, which is equivalentto a higher rent during another (later) period, this higher or lowerrent is allocated to a specific period over the term of the lease.Rental revenue, lease income and parking income are reported inadvance and the allocation of rents to specific periods thereforetakes place so that only part of the rents that accrue to the periodare reported as income. Revenue recognition normally takes placelinearly over the term of the lease agreement apart from exceptionalcases when another method better reflects how financialadvantages accrue to the Group.Interest income is reported as income divided across the termon application of the annual equivalent rate method.Dividend income is reported when the right to receive paymenthas been confirmed.Remuneration to employeesThe Group has both defined contribution and defined benefitpension schemes. A defined benefit pension scheme is a pensionscheme that guarantees an amount the employee receives as apension benefit on retirement, normally based on a number ofdifferent factors, such as salary and period of service. A definedcontribution pension scheme is a pension scheme where theGroup, after paying its pension premium to a separate legal entity,has discharged its undertaking to the employee.Defined contribution pension schemes are reported as a costduring the period to which the premiums paid can be allocated.Pension expenses for defined benefit schemes are calculatedwith the aid of the Projected Unit Credit Method in such a waythat it divides the costs over the employee’s professional life. Thecalculation is made annually by independent actuaries. Theseundertakings, i.e. the liability which is reported, are valued at thecurrent value of the expected future payment, where the calculatedfuture salary increases are taken into account, making use of adiscount rate equivalent to the interest rate on first-class companybonds or government bonds issued in the same currency as thepension that will be paid with a remaining term that is comparableto the current undertakings. Accumulated actuarial gains andlosses, outside the ‘corridor’, are reported in the Income Statementas income or as a cost, divided over the employees’ average remainingcalculated period of employment through to retirement.The corridor comprises 10 per cent of the current value of the definedbenefit pension commitments or 10 per cent of the value ofthe management assets, whichever is the higher. Costs related toservice during earlier periods are reported directly in the IncomeStatement unless the changes in the pension scheme are subject tothe employees remaining in service during a stated period. In sucha case, the cost regarding the period of employment is separatedfrom earlier periods linearly over the earning period.TaxThe tax cost for the period (- income) comprises current and deferredtax. Taxes are reported in the Income Statement with theexception of the underlying transaction, which is reported underOther comprehensive income or directly against equity, whereuponthe associated tax effect is reported underOther comprehensive income or against equity.Current tax is the tax computed on the taxable profit for a period.The taxable profit for the year differs from the reported profitfor the year in the fact that an adjustment has been made for nontaxableand non-deductible items. The Group’s current tax liabilityis computed according to the tax rates stipulated or notified as ofthe year-end.Deferred tax is reported in accordance with the Balance Sheetmethod. According to this method, deferred tax liabilities are reportedin the Balance Sheet for all taxable temporary differencesbetween the carrying and taxable values of assets and liabilities.Prepaid tax is reported in the Balance Sheet with regard to deficitdeductions and all deductible temporary differences to the extentit is likely that the amounts can be offset against future taxablesurpluses. The reported value of prepaid tax is examined at eachyear-end and reduced to the extent it is no longer probable that asufficient taxable surplus will be available for utilisation.Deferred tax is computed using the tax rates that are expectedto apply for the period in which the asset is recovered or the liabilitysettled.Tax receivables and tax liabilities are offset and reported at anet amount in the Balance Sheet when there is a legal right to offsetand when there is an intention to either receive or pay a netamount or receive payment of a receivable and pay the liability atthe same time.

AKAdEmISKA HuS 201292 FINANCIAL REPORTS; NOTES3 continuedTranslation of items in foreign currencyFinancial assets and liabilities in foreign currency are translatedat closing day rate, whereupon realised and unrealised translationdifferences are capitalised. Translation differences on operatingreceivables and liabilities are reported under Other managementincome or Other management expense whilst translation differencesattributable to financial assets and liabilities are reportedunder Net interest income and expense.PropertiesProperties, i.e. properties that are held to generate rental revenueor gains from an increase in value, are valued continuously at fairvalue (assessed market value). The fair value is based on the assessedmarket value at year-end, which means the value at which aproperty could be transferred between knowledgeable parties whoare independent of each other and who have an interest in thetransaction being implemented. Changes in fair value are reportedin the Income Statement with the effects of changes in value of theproperties.The term ‘properties’ includes buildings and land, land equipment,building and land equipment as well as properties underconstruction (new construction in progress).Property sales and property purchases are reported in conjunctionwith the risks and benefits linked to title transferring to thepurchaser or seller, which normally takes place on the completiondate, as long as this does not conflict with the terms and conditionsin the contract of sale.A profit or loss that arises on the sale or disposal of propertiescomprises the difference between the sales price and the mostrecent valuation (reported value based on the most recent revaluationat fair value). The result in conjunction with sale or disposal isreported in the Income Statement with an effect on the changes inthe value of properties.In those cases where Akademiska Hus uses part of a building forits own administration, the property is only classified as an investmentproperty if an insignificant part is used for administrativepurposes.If an investment property is reclassified as a property held forresale or an inventory item, the property is reported at the assumedacquisition value, equivalent to the fair value of the propertyat the time of reclassification.Fair value, propertiesWhen valuing the properties at fair value (assessed marketvalue) an internal valuation model is used which is qualityassuredthrough the checking of the conditions with externalproperty valuers and through externally performed valuations.The valuation is based on each property’s expected cash flowduring the coming ten years and an estimated residual valuefor year eleven. The yield requirement has been differentiatedfor different types of property, the rental period as well as thetown and location assessment. The rental revenue included inthe valuation has been assessed on market terms and in themodel, normalised operating costs have been used. Maintenancecosts have been calculated on a standardised basisaccording to the use of the property.Carrying value, propertiesDepreciation according to plan is based on the original acquisitionvalue reduced by the estimated residual value and takes place on alinear basis over the estimated useful life of the asset.Depreciation according to plan is normally carried out using thefollowing percentages of the acquisition value:Land improvements 5 %Buildings 2.5 %Building equipment 10 %Land equipment 20 %Equipment, fixtures and fittingsEquipment, fixtures and fittings mainly comprise IT equipmentand office equipment. These are reported at the acquisition valuereduced by depreciation according to plan and possible impairment.Depreciation according to plan is based on the original acquisitionvalue reduced by the estimated residual value and takes placelinearly over the expected useful life of the asset.Depreciation according to plan normally takes place using thefollowing percentages of the acquisition value:Computer equipment 33 %Equipment, fixtures and fittings 20 %Depreciation according to plan of equipment, fixtures and fittingsis reported as an operating cost or under property administration.The profit or loss that arises on scrapping or disposal of equipment,fixtures and fittings is reported as Other managementincome or Other management expense.ImpairmentImpairment takes place in those cases where the reported value ofthe asset exceeds the recovery value. Reported values for the Company’sassets are checked at each period-end to determine if thereis any indication of an impairment requirement. If there is such anindication, the recoverable value of the asset is calculated. Therecoverable value is the higher of the value in use and the netrealisable value.When computing the value in use, future cash flows are discountedat a rate of interest before tax that it is envisaged will takeinto account the market’s assessment of risk-free interest and risklinked to the specific asset. For an asset which does not, independentof other assets, generate any cash flow, the recoverable value ofthe cash-generating unit to which the asset belongs is calculated.Reversal of previous impairments takes place when the recoverablevalue for a previously impaired asset exceeds the carryingvalue and the need for impairment made previously is no longerconsidered necessary and is reported in the Income Statement.An examination of past impairments takes place on an individualbasis.Financial instrumentsThe general principle for the valuation of financial instruments isthat financial assets and all derivatives should be valued at fairvalue whilst financial liabilities are valued at the accrued acquisitionvalue.Financial instruments are reported initially at the acquisitionvalue, corresponding to the fair value of the instrument with anaddition for transaction costs for all financial instruments apartfrom those that belong to the category Financial Assets, which arevalued at fair value through profit or loss. Reporting subsequentlytakes place depending on how they are classified, as stated below.A financial asset or financial liability is recorded in the BalanceSheet when the Company becomes a party to the contractualterms and conditions of the instrument or when applicable accordingto ‘regular way purchase’ principles. The receivables are recordedin the Balance Sheet when an invoice has been sent. A liabilityis recorded when the counter-party has performed and thereis a contractual obligation to pay, even if an invoice has not yetbeen received. Accounts payable are recorded when an invoice hasbeen received.A financial asset is removed from the Balance Sheet when therights in the agreement are realised, fall due or the Company losescontrol over them. The same applies to part of the financial asset.A financial liability is removed from the Balance Sheet when theobligation in the agreement is discharged or is extinguished insome other way. The same applies to part of a financial liability.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES93The Group categorises its financial instruments as:Assets valued at fair value through profit or lossAssets in this category are reported initially at the acquisitionvalue, i.e. fair value at the time of acquisition, and are subsequentlyvalued continuously at fair value. The change in value is reportedcontinuously through profit or loss. All Akademiska Hus investmentassets and outstanding derivatives (with a positive fair value)fall into this category.Loan receivables and accounts receivableAssets in this category are non-derivative financial assets withestablished or establishable payment flows that are not listed onan active market. These assets are reported and valued on a continuousbasis at the accrued acquisition value. Akademiska Hus’saccounts receivable also fall into this category and are reportedand valued continuously at the acquisition value. At each periodend,an impairment examination is made of this asset. Noncurrentsecurity holdings fall into this category and are valued atthe accrued acquisition value unless an impairment requirementhas been identified.Liabilities valued at fair value through profit or lossThese liabilities are reported initially at the acquisition value andthereafter on an ongoing basis at fair value. The change in value isreported on a continuous basis through profit or loss. AkademiskaHus’s outstanding derivatives with a negative fair value fall intothis category.Other financial liabilitiesLiabilities in this category are reported and valued at the accruedacquisition value according to the annual equivalent rate method.Direct costs when loans are raised are included in the acquisitionvalue. All debt financing is included in this category. AkademiskaHus’s accounts payable and other liabilities are classified underthis category but are reported at the acquisition value.Offsetting of financial assets and liabilitiesFinancial assets and liabilities are offset and reported at a netamount in the Balance Sheet when there is a legal right to offsetand when there is an intention to settle the items at a net amountor at the same time realise the asset and settle the debt.Calculation of fair value, financial instrumentsWhen establishing the fair value of current investments, derivativesand loan liabilities, the official market listing at the periodendis used and calculation takes place according to generallyaccepted methods. In those cases where such listings are not available,a valuation is made through discounting of future cash flowsat the listed market interest rate for each term. Translation intoSwedish kronor takes place at the listed rate at year-end. Calculatedand estimated fair values are indicative and will not necessarilybe realised.The nominal value of accounts receivable and accounts payable,reduced by possible estimated credits, is assumed to be equivalentto their fair value.Rent receivables, accounts receivable and other receivablesRent receivables and accounts receivable are reported initially atthe fair value and are then reported at the invoiced amount followinga deduction for any impairment (bad debts), which is equivalentto the accrued acquisition value. The estimated term of rentreceivables and accounts receivable is short and consequently thevalue is reported at the nominal amount without discounting.Doubtful receivables are assessed individually and any impairmentis reported within operating costs.Cash and cash equivalentsCash and cash equivalents comprise cash and bank balances andcurrent investments with a term shorter than three months. Theseassets are regarded as being saleable immediately with a negligiblerisk of changes in value, which means that the reported value(acquisition value plus accrued coupon) is equivalent to the fairvalue.Current investmentsCurrent investments with a term in excess of three months compriseinterest-bearing securities and are reported and valued at fairvalue. Changes in value (unrealised profits and losses) are reportedon a continuous basis through net interest income and expense.In the Cash Flow Statements, current investments with a termin excess of three months are not classified as cash and cash equivalents.Loan financingAll loan financing is reported initially at fair value, net after transactioncosts. Borrowing is subsequently reported at the accruedacquisition value and any difference between the amount receivedand the repayment amount is reported in net interest income andexpense divided over the loan period on application of the annualequivalent rate method.Borrowing that constitutes a hedged item in conjunction withfair value hedging is reported and valued after the acquisitionpoint at fair value on an ongoing basis with regard to the hedgedrisk. Changes in value are reported in net interest income andexpense.Loan financing in foreign currency is translated and the effectsare reported through profit or loss.The Group applies IAS 23 Borrowing Costs. IAS 23 means thatthe Group capitalises interest expense attributable to propertiesunder construction that take a significant period of time to complete.Capitalised interest expense has a positive effect on netinterest income and expense and a negative effect on the change infair value of properties to the equivalent amount. Financing costsfor properties under construction that do not take a significantperiod of time to complete are charged in full to the financialresult for each year.Accounts payable and other liabilitiesAccounts payable and other liabilities have a short expectedterm and are valued at the nominal value without discounting.Financial derivativesDerivatives are held primarily with the aim of securing long-term,cost-effective debt financing and handling the Group’s financialrisk exposure by hedging existing interest and currency exposureagainst fluctuations in interest levels and exchange rates.All derivatives are valued at fair value and changes in value arereported on an ongoing basis against net financial income andexpense with the exception of the outstanding derivatives, whichcomprise hedging instruments. In a hedging circumstance wherethe underlying Balance Sheet item is business-related, the changesin value of the derivative are reported against operating profit.Changes in value attributable to the derivatives that comprisehedging instruments in a cash flow hedge, are reported in Othercomprehensive income, are accumulated in equity and are reportedagainst financial or operating profit at the time the underlyingexposure affects the profit.Interest derivatives (interest future contracts, interest swapagreements, FRA contracts and interest options) are held mainlyto secure the desired fixed interest period in existing debtfinancing. Interest swaps are valued on an ongoing basis at fairvalue and the effects attributable to the changes in value arereported against net interest income and expense in conjunctionwith hedging of fair value and against Other comprehensive incomein conjunction with cash flow hedging. The net of the accruedinterest income and expense is allocated to specific periods andexpensed over the term of the derivative.

AKAdEmISKA HuS 201294 FINANCIAL REPORTS; NOTES3 continuedIn conjunction with financing in a foreign currency, all future paymentflows are hedged so that no currency risk remains. (Currencyfuture contracts, currency swap agreements, or combined with aninterest swap agreements). Currency derivatives are translated atthe closing day exchange rate and when hedge reporting is applied,the effects of the currency translation of the derivative naturallymeet the effects of the currency translation of the debt in the financialresult.Independent derivatives, i.e. derivatives that are not included inany hedging relationship, are valued at fair value and the change invalue is recorded directly against the net interest income and expense.With the aim of evening out price variations on the electricitymarket, and in doing so achieve an even trend for the Group’s electricitycosts, future electricity use is hedged with the aid of electricityfutures. Electricity futures are valued continuously at fairvalue and when hedge reporting according to the cash flow methodis applied, the changes in value are reported directly against Othercomprehensive income. The effects of hedging, the difference betweenthe electricity future’s assured price and the average spotprice during the term of the electricity future, are offset againstprofit and are transferred on maturity from equity and reported asan operating cost. Consequently, the result of the electricity futuretogether with the Group’s physical electricity purchases, constitutethe actual electricity cost.In accordance with the currency mandate in the ElectricityTrading Policy, currency risk exposure attributable to outstandingelectricity futures are currency hedged with the aid of exchangerate futures. Exchange rate futures are valued on an ongoing basisat fair value and when hedge accounting according to the cash flowmethod is applied, the changes in value are reported directlyagainst Other comprehensive income. The effects are expensed onsettlement, i.e. the effects are transferred from equity and reportedas an operating cost.Hedge accountingAkademiska Hus’s hedge accounting takes place through a divisioninto two different methods of hedging depending on the aim of thehedging: ‘Fair value hedging’ and ‘Cash flow hedging’.In conjunction with fair value hedging, both the hedged item/exposure and the hedging instrument are valued at fair value. Thechanges in value are reported continuously through profit or loss.In conjunction with cash flow hedging, the hedging instrumentis valued at the fair value at the same time that the hedged item inconjunction with borrowing is valued according to the currentvaluation method (categorisation). According to the demands forcash flow hedging, a change in value attributable to a derivativethat qualifies for hedge accounting is reported on an ongoing basisagainst Other comprehensive income and is accumulated in equityuntil the underlying transaction/exposure affects the Statement ofComprehensive Income.One of the criteria for hedge accounting to be applied is that thehedging relationship is expected to be effective both at the time ofentering into the relationship as well as during the hedging period.The ineffective part of the hedging, i.e. the difference between thechanges in value in the exposure (interest, electricity price or exchangerate risk) which are hedged in the underlying transaction/flow and the change in value in the hedging instrument’s (derivative’s)equivalent risk is expensed.When a hedging measure is entered into, the relationship betweenthe hedging instrument and the hedged item, along with the aim ofthe hedging measure and the method used to calculate the effectiveness,are documented..ProvisionsProvisions are reported in the Balance Sheet when the Companyhas a formal or informal undertaking because of an event that hasoccurred and where it is probable that an outflow of resources isrequired to settle the undertaking and a reliable estimate of theamount can be made.Parent Company, accounting principlesThe Parent Company has prepared its annual accounts accordingto the Annual Accounts Act and the Swedish Accounting StandardsBoard recommendation RFR 2 Reporting for Legal Entitiesand applicable statements from the Swedish Financial ReportingBoard.RFR 2 means that in the annual accounts for the legal entity, theParent Company shall apply all EU-endorsed IFRS and statementsas far as this is possible within the framework of the AnnualAccounts Act and the Safeguarding of Pension Commitments Actand with consideration given to the link between accounting andtaxation. The recommendation states which exceptions andaddenda are to be made to IFRS. The differences between the Group’sand the Parent Company’s accounting principles are stated below.Amended accounting principlesThe amendments in RFR 2 Reporting for Legal Entities, whichhave come into effect and are applicable for the 2012 financialyear, refer to the following areas:• IFRS 7 Financial instruments: Disclosures• IAS 1 Presentation of financial statements• IAS 10 Events after the reporting period• IAS 11 Construction contracts• IAS 18 Revenue• IAS 19 Employee benefitsAmendments to RFR 2 have not had any material effect on theParent Company’s financial statements.PropertiesProperties are reported in a legal entity at the acquisition valuewith a deduction for accumulated depreciation, impairments andreversed impairments. The depreciation period is based on eachinvestment property’s useful life.Payments to employeesThe Parent Company’s pension undertakings have been calculatedand reported based on the Safeguarding of Pension CommitmentsAct. Application of the Safeguarding of Pension Commitments Actis a prerequisite for the right to make a tax deduction.Deferred taxThe amounts that are allocated to untaxed reserves comprise taxabletemporary differences. Because of the link between accountingand taxation, the deferred tax liability that is attributable tothe untaxed reserves is not reported separately in a legal entity.These are thus reported at the gross amount in the Balance Sheet.The appropriations are reported at the gross amount in the IncomeStatement.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES954 Estimates and assessmentsWhen preparing reports in compliance with IFRS, the ExecutiveManagement and the Board must make assessments and assumptionsthat affect the reported asset and liability items and incomeand cost items in the final accounts as well as information providedgenerally, including contingent liabilities. These assessments arebased on historical experience and different assumptions themanagement and the Board have considered reasonable under theprevailing circumstances. The conclusions drawn form the basisfor decisions regarding reported values of assets and liabilities inthose cases where these cannot be established easily through informationfrom other sources. The actual outcome could differfrom these assessments if other assumptions are made or if otherconditions emerge. Assessments could have a material impact onthe Akademiska Hus profit and position, particularly within thearea of valuation of properties (see also Note 17).Sensitivity analysisThe sensitivity analysis shows how the Group’s pre-tax profit,return on equity and assessed fair value would be affected in theevent of changes in different variables. The analysis shows theimpact on an annual basis at full effect.Changes in the cost of capital or yield requirement are factorsthat affect the fair value most. The impact on profit of a change invalue, however, would not affect the cash flow as it is unrealised.In the sensitivity analysis, the current lease portfolio has beentaken into account with regard to rental revenue andvacant space.Sensitivity analysis, liability portfolioThe interest-bearing liability portfolio is constantly exposed tointerest rate changes on the market. The analysis of the liabilityportfolio interest sensitivity can be divided into two parts:• A change in value of interest derivatives (current values).• Cash flow effects (net interest income/expense) over a calendaryear for items with a short fixed interest period, which aregiven a new short-term rate of interest for the remainder of theyear.As the fixed interest period is diversified and in accordance withthe current risk mandate, a minimum of two years on average, thevariations in the interest cost will fluctuate to a lesser extent thanif the fixed interest period had been very short, e.g. three months.The Company has fixed interest periods both within and outsidethe Balance Sheet in the form of interest derivatives. The aim ofthese derivatives is to facilitate a change in the liability portfolio’sfixed interest period in addition to what has been achieved directlyin the financing.The table below shows the impact on profit of a rise in interestof one percentage point. The calculations are based on an unchangedliability amount.SENSITIVITY ANALYSIS 2012CHANGEImpact onpre-taxprofit, SEK mImpact onreturn on equity,percentage pointsImpact onfair value, notlease-bound, SEK mImpact onfair value,percentage pointsRental income, +/- one per cent 53 0.1 335 0.6Vacant space, +/- one percentage point 48 0.1 362 0.7Operating costs, +/- one per cent 9 0.0 80 0.1of which energy, fuel and water 6 0.0 55 0.1maintenance costs, +/- one per cent * 6 0.0 45 0.1cost of capital, + one percentage point -3,315 -9.0 -3,315 -6.9cost of capital, - one percentage point 3,633 9.0 3,633 7.5Yield requirement, + one percentage point -3,730 -10.2 -3,730 -7.8Yield requirement, - one percentage point 5,175 12.5 5,175 10.8* A change in the maintenance cost that affects the profit and return on equity has been calculated based on actual maintenance costs. The effecton the fair value has been calculated based on a standard maintenance cost in the valuation model.SENSITIVITY ANALYSISLIABILITY PORTFOLIONominalamount,SEK mMaturity,years,averageFixedinterestperiod,years,averageInterestrisk, oneinterestpoint,SEK mInterest,%Change invalue of +100interest points,SEK m as ofthe year-end * )Net interest income/expense with 100interest points, SEK mduring the remainderof the calendar year * )Fixed interest positions with a fixedinterest period longer than one yearwithin the Balance Sheet** 7,009 15.66 15.66 8.42 3.78 0 0Interest derivatives, fixed interest 6,561 0.00 3.77 2.43 3.02 243 0Interest derivatives, variable interest -6,561 0.00 0.19 -0.14 1.56 0 53Variable interest within the BalanceSheet***13,733 3.22 0.13 0.24 1.81 0 -119TOTAL 20,741 7.42 6.51 10.96 2.68 243 -66* Refers to one hundred interest points in a parallel displacement of the yield curve.** Fixed interest positions with a fixed interest period in excess of one year within the Balance Sheet refer to issues in SEK that are not included in fair value hedges.*** Variable interest within the Balance Sheet refers to the total effect of issues in a foreign currency which, via derivatives, have been swapped to variableinterest in Swedish kronor and which are reported as hedges and FRn issues.

AKAdEmISKA HuS 201296 FINANCIAL REPORTS; NOTES5 MergerThe following Group companies were merged with AkademiskaHus AB during the 2012 operating year.NAME REG. NO. DATE OF MERGERAkademiska Hus Syd AB 556467-8786 11-12-2012Akademiska Hus Väst AB 556467-8760 11-12-2012Akademiska Hus Öst AB 556467-8778 11-12-2012Akademiska Hus uppsala AB 556467-8745 11-12-2012Akademiska Hus Stockholm AB 556467-8737 11-12-2012Akademiska Hus norr AB 556467-8752 11-12-2012Assets and liabilities have been incorporated into Akademiska Hus AB at theirconsolidated values.A summary of the Balance Sheets and details of income and operatingprofit for each company are presented below.AKADEMISKA HUS SYD ABFixed assetsEquityTangible non-currentassets3,394,407 Restricted equity 169,950Financial assets 50 non-restricted equity 149,099Current assets untaxed reserves 378,454current receivables 47,301 Provisions 88,140non-current liabilities 51,620current liabilities 2,604,495TOTAL ASSETS 3,441,758TOTAL EQUITY ANDLIABILITIES3,441,758Income and profit before financial items in Akademiska Hus SydAB, amounting to KSEK 802,057 and KSEK 297,325 respectivelyfor the period prior to registration of the merger, are included inthe Akademiska Hus AB Income Statement. All revenue and costsare reported in Akademiska Hus AB.AKADEMISKA HUS VÄST ABAssetsEquityTangible non-currentassets3,776,022 Restricted equity 189,950Financial assets 85,524 non-restricted equity 199,272Current assets untaxed reserves 429,860current receivables 217,324 Provisions 109,455non-current liabilities 112,477current liabilities 3,037,856TOTAL ASSETS 4,078,870TOTAL EQUITY ANDLIABILITIES4,078,870Income and profit before financial items in Akademiska Hus VästAB, amounting to KSEK 809,430 and KSEK 378,011 respectivelyfor the period prior to registration of the merger, are included inthe Akademiska Hus AB Income Statement. All revenue and costsare reported in Akademiska Hus AB.AKADEMISKA HUS ÖST ABAssetsEquityTangible non-currentassets2,736,545 Restricted equity 99,950Financial assets 385 non-restricted equity 126,612Current assets untaxed reserves 310,965current receivables 24,679 Provisions 47,804non-current liabilities 0current liabilities 2,176,278TOTAL ASSETS 2,761,609TOTAL EQUITY ANDLIABILITIES2,761,609AKADEMISKA HUS UPPSALA ABAssetsEquityTangible non-currentassets5,786,465 Restricted equity 109,950Financial assets 11,429 non-restricted equity 117,082Current assets untaxed reserves 501,239current receivables 105,826 Provisions 63,512non-current liabilities 10,000current liabilities 5,101,937TOTAL ASSETS 5,903,720TOTAL EQUITY ANDLIABILITIES5,903,720Income and profit before financial items in Akademiska Hus UppsalaAB, amounting to KSEK 958,238 and KSEK 317,826 respectivelyfor the period prior to registration of the merger, are includedin the Akademiska Hus AB Income Statement. All revenue andcosts are reported in Akademiska Hus AB.AKADEMISKA HUS STOCKHOLM ABAssetsEquityTangible non-currentassets11,558,047 Restricted equity 669,950Financial assets 275,052 non-restricted equity 340,674Current assets untaxed reserves 946,533current receivables 502,017 Provisions 138,873non-current liabilities 283,501current liabilities 9,955,585TOTAL ASSETS 12,335,116TOTAL EQUITY ANDLIABILITIES12,335,116Income and profit before financial items in Akademiska HusStockholm AB, amounting to KSEK 1,889,788 and KSEK 821,899respectively for the period prior to registration of the merger, areincluded in the Akademiska Hus AB Income Statement. All revenueand costs are reported in Akademiska Hus AB.AKADEMISKA HUS NORR ABAssetsEquityTangible non-currentassets2,218,292 Restricted equity 99,950Financial assets 60,923 non-restricted equity 126,890Current assets untaxed reserves 309,721current receivables 31,409 Provisions 78,923non-current liabilities 30,350current liabilities 1,664,790TOTAL ASSETS 2,310,624TOTAL EQUITY ANDLIABILITIES2,310,624Income and profit before financial items in Akademiska Hus NorrAB, amounting to KSEK 526,228 and KSEK 235,531 respectivelyfor the period prior to registration of the merger, are included inthe Akademiska Hus AB Income Statement. All revenue and costsare reported in Akademiska Hus AB.Income and profit before financial items in Akademiska Hus ÖstAB, amounting to KSEK 544,144 and KSEK 246,814 respectivelyfor the period prior to registration of the merger, are included inthe Akademiska Hus AB Income Statement. All revenue and costsare reported in Akademiska Hus AB.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES976 Segment reportThe Group’s operations are controlled and reported on a regionalbasis. Segment reporting has been prepared using the sameaccounting principles applied to the Group as a whole. Revenueper segment is based on the tenant’s geographical location whilstassets and liabilities are based on the tenant’s physical location.All revenue is generated in Sweden and all regions carry onproperty management.For details of larger customers, see Note 8.SEGMENT INFORMATION 2012 South West East Uppsala Stockholm NorthNo significant sales between the segments have occurred.‘Investments’ refers to gross investments in properties, constructionof properties in progress and equipment, fixtures andfittings. ‘Other operations’ refers to Akademiska Hus Utvecklingoch Support AB, Datja Fastighets AB and Kunskapsmiljön 2 AB.Net operating income is the most important measure of performanceand is followed up by the Executive Management in conjunctionwith each quarterly report.Total,operatingsegmentsOtheropera -tionsRental revenue 766,456 752,966 534,931 920,427 1,779,512 510,928 5,265,220 — — 5,265,220Other management income 35,601 56,461 9,057 24,528 104,851 14,775 245,273 928 — 246,201Sales between segments 3 113 379 526 1,021 115,545 -116,566 0Total income 802,057 809,430 544,101 944,955 1,884,742 526,229 5,511,514 116,473 -116,566 5,511,421Operating costs -137,220 -122,698 -86,223 -182,230 -285,499 -83,352 -897,222 — 27,674 -869,548maintenance costs -138,595 -68,797 -44,169 -104,490 -149,156 -58,871 -564,078 — — -564,078Property administration -35,671 -40,764 -23,705 -41,773 -71,367 -24,194 -237,474 -120,758 77,253 -280,979Other management costs -27,898 -49,624 -9,751 -15,510 -91,331 -17,569 -211,683 30,538 -30,424 -211,569Total costs, property management -339,384 -281,883 -163,848 -344,003 -597,353 -183,986 -1,910,457 -90,220 74,503 -1,926,174GroupNET OPERATING INCOME 462,673 527,547 380,253 600,952 1,287,389 342,243 3,601,057 26,253 -42,063 3,585,247changes in value, properties -7,556 90,526 -34,576 -354,108 38,952 -24,443 -291,205 — — -291,205central overheads -5,629 -5,603 -3,943 -6,465 -10,112 -4,248 -36,000 -66,817 36,000 -66,817Result before financial items 449,488 612,470 341,734 240,379 1,316,229 313,552 3,273,852 -40,564 -6,063 3,227,224Result from financial items (net) -80,633 -96,875 -70,699 -96,740 -266,167 -54,885 -665,999 1,042,421 -1,058,066 -681,644Appropriations -31,046 -31,026 -15,354 -26,340 -83,259 -24,747 -211,772 23,468 188,304 0Tax for the year 61,514 3,572 18,309 164,266 227,683 29,014 504,358 5,698 91,172 601,228PROFIT FOR THE YEAR ACCORDING TOTHE INCOME STATEMENT399,323 488,141 273,990 281,565 1,194,486 262,934 2,900,439 1,031,023 -784,653 3,146,808Properties 6,619,614 6,974,891 4,557,462 10,094,252 22,334,584 4,096,223 54,677,026 — — 54,677,026Other non-current assets 693 87,615 4,214 13,309 283,417 61,246 450,494 1,872,370 — 2,322,864current assets 42,634 213,262 22,254 101,006 495,510 28,973 903,639 3,728,681 — 4,632,320Total assets 6,662,941 7,275,768 4,583,930 10,208,567 23,113,511 4,186,442 56,031,159 5,601,051 0 61,632,210Total assets include:Investments 253,903 111,351 95,623 988,288 1,402,579 63,086 2,914,830 2,498 — 2,917,328Equity — — — — — — — 28,426,713 — 28,426,713liabilities 1,150,444 1,177,849 610,393 1,424,893 3,429,588 700,246 8,493,413 24,712,084 — 33,205,497Total liabilities and equity 1,150,444 1,177,849 610,393 1,424,893 3,429,588 700,246 8,493,413 53,138,797 0 61,632,210Total,operatingSEGMENT INFORMATION 2011 South West East Uppsala Stockholm North segmentsOtheropera -tionsEliminationsEliminationsRental revenue 750,702 745,769 519,911 873,019 1,736,996 489,452 5,115,849 — — 5,115,849Other management income 31,987 68,194 7,654 74,525 65,186 14,088 261,634 702 — 262,336Sales between segments — — — — 540 7 547 127,907 -128,454 0Total income 782,689 813,963 527,565 947,544 1,802,722 503,547 5,378,030 128,609 -128,454 5,378,185Operating costs -140,366 -126,421 -88,742 -172,856 -285,362 -79,164 -892,911 — 7,750 -885,161maintenance costs -201,583 -81,221 -34,879 -103,039 -109,905 -72,809 -603,436 — — -603,436Property administration -38,254 -42,366 -24,861 -43,506 -76,103 -24,133 -249,223 -110,229 91,122 -268,330Other management costs -26,257 -62,862 -6,088 -44,453 -79,369 -13,592 -232,621 — — -232,621Total costs, property administration -406,460 -312,870 -154,570 -363,854 -550,739 -189,698 -1,978,191 -110,229 98,872 -1,989,548GroupNET OPERATING INCOME 376,229 501,093 372,995 583,690 1,251,983 313,848 3,399,839 18,380 -29,582 3,388,637changes in value, properties -306,178 94,213 100,002 116,221 314,913 41,354 360,525 — — 360,525central overheads -5,727 -5,754 -4,005 -6,492 -10,280 -4,292 -36,550 -44,559 36,000 -45,109Profit/loss before financial items 64,324 589,552 468,992 693,419 1,556,616 350,910 3,723,814 -26,179 6,418 3,704,053Result from financial items (net) -71,971 -88,830 -64,080 -79,762 -244,770 -48,209 -597,622 910,600 -765,172 -452,194Appropriations -6,654 59,800 -18,733 -82,298 -75,736 -39,534 -163,155 -26,971 190,126 0Tax for the year 2,920 -140,722 -102,816 -140,982 -328,056 -70,445 -780,101 -26,238 -51,645 -857,984PROFIT FOR THE YEAR ACCORDING TOTHE INCOME STATEMENT-11,381 419,800 283,364 390,377 908,054 192,721 2,182,936 831,212 -620,273 2,393,875Properties 6,463,943 6,770,939 4,495,861 9,424,303 20,859,119 4,056,535 52,070,700 — — 52,070,700Other non-current assets 1,489 168,083 3,472 17,580 328,663 57,519 576,806 4,398,756 -1,666,939 3,308,623current assets 60,349 276,359 23,551 112,882 323,997 34,166 831,304 26,317,203 -21,455,024 5,693,483Total assets 6,525,781 7,215,381 4,522,884 9,554,765 21,511,779 4,148,220 53,478,810 30,715,959 -23,121,963 61,072,806Total assets include:Investments 123,792 103,535 79,132 693,380 1,099,102 162,534 2,261,475 4,912 — 2,266,387Equity 2,540,551 2,686,845 1,506,505 3,487,027 8,507,037 1,524,391 20,252,356 5,619,010 649,283 26,520,649liabilities 3,637,822 4,129,704 2,720,769 5,592,839 12,141,468 2,338,856 30,561,458 24,703,887 -20,713,188 34,552,157Total liabilities and equity 6,178,373 6,816,549 4,227,274 9,079,866 20,648,505 3,863,247 50,813,814 30,322,897 -20,063,905 61,072,806

AKAdEmISKA HuS 201298 FINANCIAL REPORTS; NOTES7 Categorised operating costsGROUPPARENT COMPANY2012 2011 2012 2011Functions reported in the consolidated Statement of comprehensive Income/Income StatementProperty management -1,926,174 -1,989,548 -2,015,371 -110,229central administration costs -66,817 -45,109 -66,817 -44,559TOTAL OPERATING COSTS ACCORDING TO FUNCTION -1,992,991 -2,034,657 -2,082,188 -154,788CATEGORISED FUNCTION COSTSEnergy, fuel and water -642,939 -669,082 -642,939 —Property administration -73,254 -50,686 -73,254 -66,035maintenance costs, material and services purchased -616,523 -657,120 -616,523 —Site leasehold charges -57,878 -57,825 -57,878 —Property tax -2,536 -2,026 -2,536 —Personnel costs -323,271 -325,080 -323,271 -67,276depreciation -9,217 -7,592 -9,217 -2,364Other costs -267,373 -265,246 -356,570 -19,113TOTAL CATEGORISED OPERATING COSTS -1,992,991 -2,034,657 -2,082,188 -154,7888 Lease agreementsAll properties are leased under operational lease agreements and generaterental revenue. The rental revenue during the period amountedto KSEK 5,265,220 (5,115,849) and the direct costs for propertymanagement for the period amounted to KSEK 1,926,174 (1,989,548).Profit for the year includes KSEK 578,219 (553,466) for variablesupplements. Lund University and Uppsala University account for11 per cent and 10 per cent of the rental revenue respectivelyTERMS, LEASES AS OF 31-12-2012CONTRACTED RENTAL INCOME AS OF 31-12-2012ACCORDING TO THE SIZE OF THE LEASEDue datePremisesNumber ofleasesContractedannual rentProportion,% Annual rentPremisesNumberof leasesContractedannual rent Proportion, %2013 292 338,533 6 >70,000 2 298,267 52014 324 826,052 15 30,000 - 70,000 30 1,252,925 222015 256 740,921 13 10,000 - 30,000 134 2,186,770 392016 142 599,272 11 7,500 - 10,000 49 430,760 82017 65 378,997 7 5,000 - 7,500 83 505,324 92018 50 418,975 7 2,500 - 5,000 137 505,240 92019 and later 201 2,309,164 41

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES999 Other management incomeGROUPPARENT COMPANY2012 2011 2012 2011Parking income 54,619 52,613 54,619 —Profit on sales of other current assets 967 12,891 160,225 —Income from external management assignments and similar assignments 72,476 94,167 72,476 —Income from services performed on behalf of tenants 48,946 42,738 48,946 —Invoicing to regional companies — — — 127,907miscellaneous 69,193 59,927 25,741 702TOTAL 246,201 262,336 362,007 128,609Invoicing to regional companies ceased in conjunction with the merger.10 Other management expensesGROUPPARENT COMPANY2012 2011 2012 2011Site leasehold charges, property tax and other risk costs -80,096 -77,827 -80,096 —loss on sales and disposal of other non-current assets -1 -10 -123,385 —costs for external management assignments and similar assignments -56,673 -66,382 -56,673 —costs for services performed on behalf of tenants -45,567 -41,039 -45,567 —miscellaneous -29,232 -47,363 -10,449 —TOTAL -211,569 -232,621 -316,170 —11 Depreciation in property managementGROUPPARENT COMPANY2012 2011 2012 2011Properties — — -1,278,979 —Equipment, fixtures and fittings -9,217 -7,592 -9,217 -2,364TOTAL -9,217 -7,592 -1,288,196 -2,364In the Group, KSEK 6,224 (4,978) has been reported as property administration and KSEK 2,993 (2,614) has been reported as operating costs. In the Parent company,depreciation of equipment, fixtures and fittings amounting to KSEK 6,224 (2,364) has been reported as property administration and KSEK 2,993 (0) as operatingcosts. In the Parent company, depreciation of properties totalling KSEK 1,278,979 (0) has been added through a merger.12 Employees and personnel costsThe average number of employees was as follows:2012 2011AKADEMISKA HUS ABHead Office, Gothenburg 62 54Southern region 53 57Western region 64 65Eastern region 27 29uppsala Region 68 71Stockholm Region 97 91northern Region 32 29Kunskapsmiljön 2 AB — —datja Fastighets AB — —Akademiska Hus utveckling och Support AB — —GROUP, TOTAL 403 396The proportion of women (based on the average number of employees)in the Parent Company is 46 per cent (56) and in the Group 23per cent (22).Gender division, Board, Group Managementand other persons in executive positionsThe Board comprises 8 (8) members elected at the Annual GeneralMeeting, of whom 3 (4) are women, i.e. 38 per cent (50). The Boardof Directors also includes 2 (2) employee representatives.Overall management of the Group rests with the ExecutiveManagement, which comprises 7 (8) men and 4 (8) women. TheExecutive Management comprises the President, Vice President,Director of Accounting and Finance, Human Resources Director,Corporate Communications Director and Regional Directors.Regional management teams in the Group consist of 28 men(30) and 8 women (8), i.e. 78 per cent men (79) and 22 per centwomen (21).

AKAdEmISKA HuS 2012100 FINANCIAL REPORTS; NOTES12 continuedSalaries, other remuneration and social security costs2012 2011PARENT COMPANY REGIONAL COMPANIES GROUP PARENT COMPANY REGIONAL COMPANIES GROUPSALARIES AND REMUNERATIONBoard members, President 3,607 — 3,607 2,139 6,966 9,105Other employees 194,988 — 194,988 33,366 148,069 181,435TOTAL 198,595 0 198,595 35,505 155,035 190,540SOCIAL SECURITY COSTSBoard members, President 1,906 — 1,906 1,038 5,060 6,098(of which pension costs) (1,037) — (1,037) (494) (3,468) (3,962)Other employees 96,979 — 96,979 22,026 82,713 104,739(of which pension costs) (56,009) — (56,009) (14,945) (51,594) (66,539)TOTAL 98,885 0 98,885 23,064 87,773 110,837(of which pension costs) (57,046) — (57,046) (15,439) (55,062) (70,501)The Group’s outstanding pension obligations to the presidents and regional company directors total KSEK 809 (133). The correspondingamount in the Parent Company is KSEK 809 (0).Payments to the BoardDIRECTOR’S REMUNERATIONFEE COMMITTEEFINANCECOMMITTEEAUDITCOMMITTEE2012 2011DIRECTOR’S REMUNERATIONFEE COMMITTEEFINANCECOMMITTEEAUDITCOMMITTEEchairwoman of the Board Eva-Britt Gustafsson 200 10 20 0 195 11 20 10member marianne Förander 1) 12 0 0 10 — — — —member leif ljungqvist 1) — — — — — — — —member Per Granath 100 — 20 — 98 — 20 —member Gunnar Svedberg 100 10 — — 98 11 — —member maj-charlotte Wallin 100 — 0 0 98 — 10 10member Ingemar Ziegler 100 — — 20 98 — — 20member Olof Ehrlén 2) 100 — — 20 50 — — 10member Pia Sandvik Wiklund 2) 100 — 20 — 50 — 10 —member Sigbrit Franke 2) — — — — 48 6 — —Employee representative Anders larsson — — — — — — — —Employee representative Thomas Jennlinger — — — — — — — —TOTAL 812 20 60 50 735 28 60 501)member for part of 2012. 2) member for part of 2011.Payments to the Executive Management2012 2011BASIC SALARY 8) PENSION COST BASIC SALARY 8) PENSION COSTcEO/President Kerstin lindberg Göransson 1) 2,585 622 717 130cEO/President mikael lundström — — 539 166Vice President michael Walmerud 2) 602 98 — —Vice President Anette Henriksson 2) 662 170 1,735 518Regional director, South unni Sollbe 3) 953 374 1,095 397Regional director, South Bengt Keyser 3) 115 — — —Regional director, West Birgitta Hohlfält 1,104 427 1,076 399Regional director, East lars Svensson 4) 855 245 1,020 352Regional director, East lars Hagman 4) 230 27 — —Regional director, uppsala Hans Antonsson 1,150 408 1,138 382Regional director, Stockholm Sten Wetterblad 1,593 423 1,537 395Regional director, north david carlsson 5) 1,122 233 831 169Regional director, north matias lindberg — — 404 73cIO Per Brantsing Karlsson 7) — — 820 170Technical director Tomas Hallén 7) — — 1,023 386corporate communications director cecilia nielsen 6) 676 119 — —General counsel carolin Åberg-Sjöqvist 832 167 768 147director Accounting and Financing Gunnar Oders 979 341 927 280Treasurer Agneta Rodosi 1,254 428 1,153 405HR-director Kristina Korsgren 920 243 877 221Planning director Anders Rubensson 7) — — 1,197 559TOTAL 15,632 4,325 16,857 5,1491)Kerstin lindberg Göransson took up the position of cEO/President on September 19, 2011.2)Anette Henriksson left the position of cEO/President on may 20, 2012. michael Walmerud took up the position of Vice President on August 15, 2012.3)unni Solbe left the position of Regional director on October 31, 2012. Bengt Keyser was acting Regional director during the period november 1-december 31, 2012.4)lars Svensson left the position of Regional director on October 12, 2012. lars Hagman took up the position of Regional director on October 15, 2012.5)david carlsson took up the position of Regional director on April 1, 2011.6)cecilia nilsson took up the position of corporate communications director on march 18, 2012.7)no longer a member of the Executive management.8)no payments were made in addition to the above reported basic salary.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES101Principles governing remuneration to the Boardand Executive ManagementThe members of the Board receive a fee as decided at the AnnualGeneral Meeting. Board members who are employed in the AkademiskaHus Group, or who work at the Government Offices, do notreceive any fee for this work.Payment for committee work was set at the 2012 Annual GeneralMeeting.Payment to the CEO and other senior executives comprises abasic salary and a pension. The pension cost refers to the costthat had an impact on the profit for the year. All payments areexcluding social insurance charges and employer’s contribution.Payment to the CEO is decided by the Board following a recommendationby the Remuneration Committee. Payments to othersenior executives are decided by the President of the Parent Companyfollowing consultation with the Remuneration Committee.Payment comprises a basic salary and a defined contribution pensionbased on the ITP premium according to a collective agreement.Akademiska Hus follows the owner’s guidelines regardingterms and conditions of employment for executive employees.To ensure that the owner’s guidelines are followed, an externalenquiry was conducted in 2011. The enquiry showed that AkademiskaHus is following the guidelines. There was no variable orbonus-based remuneration. Salary surveys are conducted where acomparison is made with other property companies.PensionsFor the CEO, Kerstin Lindberg Göransson, Akademiska Hus hastaken out an individual occupational pension solution where theagreed retirement age is 65 years. Akademiska Hus allocates 30per cent of the fixed monthly salary for Kerstin Lindberg Göransson,to be paid into occupational pension insurance according to aspecial agreement drawn up with a pension company. The pensionpackage includes a sickness and early retirement pension, a retirementpension and, as an optional part, a survivor’s pension and/orrepayment cover.Other persons in executive positions have similar defined contributionagreements with a maximum allocation of 30 per cent, or whatis termed a high-income earner solution with an opt-out premiumthat is cost-neutral compared to traditional, collectively agreed ITP.Periods of notice and severance payAn agreement has been reached with the CEO, Kerstin LindbergGöransson, regarding a mutual period of notice of six months. Inthe event of notice being given by the Company, severance pay ispayable for a further 18 months. The severance pay shall be consideredto include payment for holiday and pension benefits. The severancepay is reduced by any amount Kerstin Lindberg Göranssonreceives from other employment or through other activities.Other persons in executive positions within the Group have anagreed period of notice of 6–12 months depending on when theagreements were signed. Agreements entered into after 2009 followgovernment guidelines with a period of notice of six months and inthe event of notice being given by the Company, severance pay ispayable for a maximum of 18 months. Agreements entered into before2009 stipulate a period of notice of 12 months and severancepay for 12 months. All agreements, however, fall within the frameworkof 24 months, including the period of notice. Salary payableor remuneration for work performed during the time severancepay is received shall be set off on a krona-by-krona basis.Absenteeism due to illness, Group and Parent CompanyGROUP PARENT COMPANY2012 2011 2012 2011Total absenteeism due to illness, % 2.5 3.7 2.5 5.6long-term absenteeism due to illness,% of total absenteeism due to illness32.2 54.6 32.2 72.4Absenteeism due to illness, men, % 1.9 2.6 1.9 1.1Absenteeism due to illness, women, % 4.2 7.1 4.2 8.9Absenteeism due to illness, employeesunder 30 years, %1.8 3.0 1.8 4.8Absenteeism due to illness, employees30–49 years, %2.6 3.1 2.6 9.6Absenteeism due to illness, employees50 years and older, %2.4 4.3 2.4 1.0The total absenteeism due to illness is stated as a percentage of the employees’ totalordinary working time. long-term absenteeism due to illness refers to absenteeismover a continuous period of 60 days or more.13 Fees and expenses paid to auditorsPARENT COMPANY REGIONAL COMPANIES GROUP2012deloitte ABAudit assignment 930 — 930Audit work in addition to the audit assignment 463 — 463Tax consulting 190 — 190Other services 1,193 — 1,193TOTAL 2,776 0 2,7762011deloitte ABAudit assignment 526 549 1,075Audit work in addition to the audit assignment 623 81 704Tax consulting 24 125 149Other services 1,163 80 1,243TOTAL 2,336 835 3,171‘Audit assignment’ refers to payment to the auditor for the statutory audit, i.e. work necessary to submit the audit report. ‘Audit work inaddition to the audit assignment’ in effect refers to what can be designated quality assurance services (e.g. examination of a prospectusfor an EMTN programme) as well as advice or other assistance as a result of observations made in conjunction with such an examinationor the performance of such other duties. ‘Tax consulting’ is self-explanatory. ‘Other services’ refers mainly to consultation in conjunctionwith the merger of the subsidiaries, consultation regarding tax returns, examination of tax calculations and consultation regardingfinancial instruments and the sustainability report.

AKAdEmISKA HuS 2012102 FINANCIAL REPORTS; NOTES14 Result from financial income and expenseGROUPPARENT COMPANY2012 2011 2012 2011RESULT FROM SHARES IN GROUP COMPANIESdividend — — — 765,000Total — — — 765,000RESULT FROM OTHER SECURITIES AND RECEIVABLES RECORDED AS NON-CURRENT ASSETSInterest income, miscellaneous * 59,824 22,659 59,824 22,659changes in value, independent derivatives -4,209 166,429 -4,209 166,429Total 55,615 189,088 55,615 189,088OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMSInterest income, Group companies * — — — 661,718Interest income, other * 166,762 68,648 166,762 64,419changes in value, independent derivatives 63,604 43,050 63,604 43,050Total 230,366 111,698 230,366 769,187RESULT, FINANCIAL INCOME 285,981 300,786 285,981 1,723,275OTHER INTEREST EXPENSE AND SIMILAR PROFIT/LOSS ITEMSInterest expense, miscellaneous * -663,334 -618,222 -771,798 -677,917changes in value, independent derivatives -137,887 -342,624 -137,887 -342,624changes in value, fair value hedging -166,404 207,866 -166,404 207,866RESULT, FINANCIAL EXPENSE -967,625 -752,980 -1,076,089 -812,675RESULT, NET FINANCIAL INCOME AND EXPENSE -681,644 -452,194 -790,108 910,600* Of which interest income/interest expense deriving from financial instrumentsthat are not valued at fair value in profit or loss. 1,698,383 -152,764 1,634,459 445,030CHANGES IN VALUE ARE AS FOLLOWS: GROUP PARENT COMPANY2012 2011 2012 2011UNREALISED CHANGES IN VALUEIndependent derivatives -70,525 -137,758 -70,525 -137,758Fair value hedging, hedging instruments -604,064 772,803 -604,064 772,803Fair value hedging, hedged item 437,660 -564,937 437,660 -564,937Total -236,929 70,108 -236,929 70,108REALISED CHANGES IN VALUEIndependent derivatives -7,967 4,613 -7,967 4,613Total -7,967 4,613 -7,967 4,613TOTAL CHANGES IN VALUE -244,896 74,721 -244,896 74,72115 Appropriations and untaxed reserves (Parent Company)PARENT COMPANY31-12-2012 31-12-2011APPROPRIATIONSchange in tax allocation reserve -190,437 -26,826difference between carrying depreciation and depreciation according to plan 2,134 -145TOTAL -188,303 -26,971UNTAXED RESERVESTax allocation reserve, 2007 tax assessment — 63,161Tax allocation reserve, 2008 tax assessment 95,922 95,922Tax allocation reserve, 2008 tax assessment, added due to merger 168,881 —Tax allocation reserve, 2009 tax assessment 85,864 85,864Tax allocation reserve, 2009 tax assessment, added due to merger 219,429 —Tax allocation reserve, 2010 tax assessment 67,464 67,464Tax allocation reserve, 2010 tax assessment, added due to merger 391,072 —Tax allocation reserve, 2011 tax assessment 53,399 53,399Tax allocation reserve, 2011 tax assessment, added due to merger 344,055 —Tax allocation reserve, 2012 tax assessment 26,826 26826Tax allocation reserve, 2012 tax assessment, added due to merger 410,659 —Tax allocation reserve, 2013 tax assessment 449,374 —Additional depreciation -1,989 145Additional depreciation following merger 935,128 —TOTAL 3,246,084 392,782

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES10316 TaxesThe following components are included in the Group and ParentCompany tax expense:GROUP PARENT COMPANY2012 2011 2012 2011TAX On PROFIT FOR THE YEARcurrent taxcurrent tax on profit for the year -356,304 -345,178 -356,303 -21,166Total actual tax -356,304 -345,178 -356,303 -21,166DEFERRED TAXdeferred tax attributable to achange in temporary differences-336,440 -512,806 10,029 -5,070Effect of change in tax rate 1,293,972 — 75,044 —deferred tax attributable to achange in valuation of previous — — — —temporary differencesTotal deferred tax 957,532 -512,806 85,073 -5,070TOTAL TAX ON PROFITFOR THE YEAR601,228 -857,984 -271,230 -26,236The difference between the reported tax expense and tax expensebased on the current tax rate comprises the following components:GROUP PARENT COMPANY2012 2011 2012 2011Reported profit before tax 2,545,580 3,251,859 1,278,432 857,449Tax at the current tax rate -669,488 -855,239 -336,228 -225,509Tax effect of expenses thatare not tax deductible/taxable(permanent differences):non-deductible expenses -2,435 -1,440 -7,940 -479non-taxable income 6,283 3,162 6,283 95Taxable standard interestcalculated on the taxallocation reserve -6,643 -10,662 -6,643 -1,963dividend from regionalcompanies— — — 201,195Effect of change in tax rate 1,293,972 — 75,044 —Adjustment of tax expense forprevious years -20,461 6,195 -1,746 425TOTAL REPORTED TAX EXPENSE 601,228 -857,984 -271,230 -26,236Reported deferred tax claim/liabilityThe following deferred tax receivables/liabilities refer to items where achange has been reported in other comprehensive income.GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011cASH FlOW HEdGE- currency forward -3,555 8,699 -3,555 8,669- Electricity future 2,354 4,957 2,354 4,957TOTAL DEFERRED TAXREPORTED IN OTHERCOMPREHENSIVE INCOME-1,201 13,656 -1,201 13,626Change in tax ratesIn November 2012, Parliament decided to reduce the tax rate from26.3% to 22%. The lower tax rate applies with effect from thefinancial year commencing January 1, 2013 or later. When calculatingdeferred tax on temporary differences, the reduced tax rateof 22% has been used.Unreported deferred taxNo deferred tax regarding untaxed reserves has been reported inthe Parent Company. The deferred tax liability related to untaxedreserves totals KSEK 714,200 (103,301). Of the unreported deferredtax liability, KSEK 632,770 has arisen due to the merger.The consolidated accounts do not include any material unreportedtemporary differences between carrying and tax values for assetsand liabilities. All tax deficit deductions within the Group can beutilised for an unlimited period in the future.17 DividendThe dividend paid to the shareholder on June 7, 2012 totalledSEK 1,245,000,000 (1,207,000,000). The dividend per share wasSEK 583.14 (565.34). As regards the dividend for the year, theBoard proposes a dividend of SEK 634.66 per share to be paid tothe shareholder as instructed by the owner. A decision regarding adividend will be reached by the shareholder at the Annual GeneralMeeting. The dividend has not been recorded as a liability in theAnnual Report. The dividend is estimated at SEK 1,355,000,000.GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011dEFERREd TAX clAImS ATTRIBuT -ABlE TO TEmPORARY dIFFEREncESFinancial instruments 32,816 11,084 32,816 11,084cash flow hedge 12,455 13,657 12,455 13,657miscellaneous — 6,950 — 432Total, reported deferredtax receivables45,271 31,691 45,271 25,173dEFERREd TAX lIABIlITIES ATTRIBuT-ABlE TO TEmPORARY dIFFEREncESTax allocation reserve -508,910 -558,294 — —Properties -6,120,330 -6,985,653 -365,697 —Financial instruments -22,908 — -22,908cash flow hedges — -41,447 0 -41,447miscellaneous 9,504 — 310 —Total, reported deferredtax liabilities-6,642,644 -7,585,394 -388,295 -41,447TOTAL REPORTED DEFERREDTAX RECEIVABLES/LIABILITIES-6,597,373 -7,553,703 -343,024 -16,274

AKAdEmISKA HuS 2012104 FINANCIAL REPORTS; NOTES18 Properties (Group)The assessed fair value of properties has changed during the yearas follows:GROUP31-12-2012 31-12-2011Opening carrying value 52,070,700 49,496,874Investments, new construction and redevelopment 2,901,346 2,326,412Acquisitions 7,000 —Sales and disposals -146,209 -116,666net change in value -155,811 364,080CARRYING VALUE 54,677,026 52,070,700GROUP2012 2011cHAnGES In VAluEPositive 1,182,161 1,912,966negative -1,444,501 -1,548,886Result from sales and disposalsPositive 21,921 211negative -50,786 -3,766TOTAL CHANGES IN VALUE, PROPERTIES -291,205 360,525The assessed fair value of the Group’s properties as of December31, 2012 has been set following an internal property valuation. Thevaluation was based on different valuation methods as follows:SEK m Share, %Internal valuation model cash flow method 52,130 95Expansion reserves location price method 940 2Other valuation Special basis for calculation 1,607 3TOTAL 54,677 100External valuationA selection of the properties is valued each year by external valuationcompanies as a benchmark to quality-assure the internalvaluation model. In addition, certain development properties withincome and costs that are difficult to estimate are valued externally.External valuations in 2012 were made by DTZ, whose valuers areauthorised by the Swedish Society of Real Estate Economics.Of the 100 properties in Akademiska Hus that had been valuedthe highest, 12 properties were valued externally. In terms of value,the external valuations account for approximately 5 per cent of thetotal value. The external valuations confirm the reliability of theAkademiska Hus internal valuation model.Internal valuationSEK 52,130 million (95 per cent) of the assessed fair value hasbeen set using the internal cash flow valuation.Valuation methodThe value of an asset comprises the current value of the futurecash flows which the asset is expected to generate. Within AkademiskaHus, the property valuation is based on each individual valuationobject’s expected cash flow during the coming 10 years andwith an estimated residual value for year 11. The cash flow compriseseach valuation object’s income and expenses, i.e. the netoperating income. To calculate the net operating income duringthe calculation period, an assessment is made of, among otherthings, inflation, rents, vacant space and operating and maintenancecosts. For the final year of the calculation period, the residualvalue is calculated and should be a probable market value at thatpoint in time. The net operating income for years 1–10 is discountedusing a nominal cost of capital and the residual value for year 11,which is the net operating income during the remaining estimateduseful life, is discounted with a yield requirement. The currentvalue of the net operating income and the residual value have beencalculated using the same cost of capital, reduced by 4.25 per centfor stamp duty.Projects in progress have been valued using the same principlealthough with a deduction for the remaining investment.Cost of capital and yield requirementsCost of capital and yield requirements in the Akademiska Husvaluation model can be traced partly from transactions on theproperty market and partly using in-house analyses. Both thedemands of the market and in-house analyses have been checkedwith several independent valuation companies, including DTZ andNAI Svefa.Cost of capital and yield requirements should be justified basedon conditions specific to Akademiska Hus as well as practice withinthe property industry. It is in these yield requirements that therisk in the property holdings is highlighted.At Akademiska Hus, the tenants are a strength factor. Around90 per cent of the tenants are state-controlled and the averageremaining term of current leases is 5.2 years (5.6). The cash flowduring the calculation period, using these conditions, is extremelywell assured and it is seldom that any major uncertainties prevailduring the calculation period. Using these prerequisites, the risksupplement in the cost of capital should be low. The uncertaintycomprises largely residual value risks and the fact that AkademiskaHus is working in a specific segment of the property market.The residual value risk means that there is a relatively high riskin the rent flow in the long term and in particular for buildingsoutside the city areas with a significant element of specific operationallyadapted premises. Several buildings are not general in thesense that they are not available for new tenants or purposes withoutsubstantial redevelopment. The relatively wide range in theyield requirements reflects an assessment of this situation.The cost of capital for the cash flow varies for different valuationproperties within the range 7.2–13.2 per cent depending ontown, location, lease term and type of premises in the valuationproperty. The cost of capital varies, which could be explained bywhat are on average long and secure flows during the cash flowperiod. For 2012, the average cost of capital was 8.6 per cent (8.5).The long-term yield requirement varies between 5.0 per centand 10.8 per cent depending on town, location and type of premises.There is a lower degree of sensitivity to the yield requirementcompared to the cost of capital due to the fact that the yield requirementrefers to uncertain conditions after year 10. For 2012,the average yield requirement was 6.4 per cent (6.4).Town and locationIn conjunction with an internal valuation, town and location havebeen classified for the following 27 cities/towns/locations: InnercityStockholm, inner-city Gothenburg, other parts of Stockholm,Solna, Lund, other parts of Gothenburg, Uppsala, Linköping, innercityMalmö, other parts of Malmö, Kista, Sundsvall, Huddinge,Umeå, Norrköping, Karlstad, Borås, Luleå, Kalmar, Kristianstad,Skövde, Örebro, Grythyttan, Ultuna, Gävle, Alnarp and othersmaller locations.The division into different cities, towns and locations reflectsthe demand on the market and the attractiveness of the properties.Inner-city locations in Stockholm and Gothenburg are in greatestdemand and most attractive whilst demand is lowest in smaller,rural locations.The city, town and location classifications have been based partlyon the general division of the property market, where larger andmore important cities and towns have been assigned, from a demographic,employment and economic point of view, a higher degreeof attractiveness. This is also the case from the point of view ofhigher education and research, where Sweden’s three cities, Stockholm,Gothenburg and Malmö, but also the classic universitytowns of Lund and Uppsala and to a certain extent Linköping, aremore attractive and are considered to be more stable and secureeducation and research locations in the long term.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES105Special adaptation and category of premisesIn the valuation, a division has been made into laboratory premisesand non-laboratory premises. The proportion of laboratory premiseswithin Akademiska Hus is 34 per cent. For these premises, thereis a relatively higher risk in the rent flow in the long term as theyrepresent a significant element of specific operationally adaptedpremises. To counter this risk, laboratory premises have a generallyhigher yield requirement with regard to the residual value.Lease termFrom a valuation point of view, a division has been made into an averageremaining lease term exceeding ten years, exceeding six years andequal to or less than six years. For valuation properties with an averageremaining lease term exceeding six years, the relative risk is loweras the cash flow valuation is based predominantly on hedged flows.Other assumptionsThe following assumptions form the basis for the market valuation:• The calculation period is 10 years (10).• Inflation is estimated at 1.0 per cent (2.0) for the first year of thecalculation period and 2.0 per cent (2.0) per year during theremainder of the calculation period.• The rent trend is estimated at a maximum of inflation (CPI).Consideration has been given to the formulation of the leaseagreements, which have an annual rent trend equal to an averageof 70 per cent of the CPI. The rent is adapted to the assessedmarket rent at the end of the lease term.• For current lease agreements, the actual level of vacant space hasbeen used. At the end of the current lease agreement, a generallevel of vacant space of 5 per cent (5) has been assumed.• It has been assessed that under normal circumstances operatingcosts follow inflation (CPI).• Property administration costs have been set at a standard ofSEK 75/m 2 (75).• Maintenance costs have been set at a standard of SEK 70/m 2 (70)for non-laboratory premises and SEK 110/m 2 (110) for laboratorypremises. The maintenance figures adopted reflect the actual costs.• Costs have been taken into account for installation-intensivepremises and for a small number of other premises with a considerableneed for refurbishment of a maintenance nature.Sensitivity analysisFor information regarding how the Group’s assessed fair value isaffected in conjunction with changes in different variables/factors,reference can be made to Note 4, Estimates and assessments.Expansion reservesOf the assessed fair value, SEK 940 million comprises expansionreserves, where building rights of approximately 1.2 million squaremetres gross area are included. As these do not generate cash flow,they have been valued using the location prices for building rightsas a guide with a deduction for estimated development costs, suchas the cost of roads, in conjunction with expansion. In some cases,where the planning conditions for a new development are unclear,the pure land values have been used to set the values.Other valuationSEK 52,130 million has been valued according to the internal valuationmodel and SEK 940 million refers to expansion reserves. Theremaining figure, SEK 1,607 million, comprises mainly developmentproperties with uncertain future income and costs as well asthe few Akademiska Hus residential properties. These have beenvalued individually outside the internal valuation model using thevaluation method that has been most applicable.19 Properties (Parent Company)PARENT COMPANY31-12-2012 31-12-2011Acquisition value brought forward — —Addition following merger of subsidiaries 40,777,207 —Investment in new constructionand redevelopment— —Acquisitions — —Sales and disposals — —ACCUMULATED ACQUISITION VALUECARRIED FORWARD40,777,207 —PARENT COMPANY2012 2011depreciation brought forward — —Addition following merger of subsidiaries -13,832,232 —Reclassifications -3,383 —Sales and disposals 336,172 —depreciation for the year -1,183,797 —ACCUMULATED DEPRECIATION ACCORDINGTO PLAN CARRIED FORWARD-14,683,240 —PARENT COMPANY2012 2011Impairments brought forward — —Addition following merger of subsidiaries -560,978 —Reclassifications 3,383 —Sales and disposals 4,719 —Reversed impairments 34,059 —Impairments for the year -129,241 —ACCUMULATED IMPAIRMENTSCARRIED FORWARD-648,058 —CARRYING VALUE 25,445,90920 Equipment, fixtures and fittingsGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Acquisition value broughtforward115,411 123,867 15,349 21,122Addition following mergerof subsidiaries— — 93,085 —Purchases 8,982 12,549 — 4,912Sales and disposals -15,959 -21,005 — -10,684ACCUMULATEDACQUISITION VALUECARRIED FORWARD108,434 115,411 108,434 15,349depreciation broughtforward-91,802 -105,206 -8,809 -17,129Addition following mergerof subsidiaries— — -76,536 —Sales and disposals 15,674 20,996 — 10,684depreciation for the year -9,217 -7,592 — -2,364ACCUMULATED DEPRECIA-TION CARRIED FORWARD-85,345 -91,802 -85,345 -8,809CARRYING VALUE 23,089 23,609 23,089 6,540MiscellaneousThere are no limits with regard to the right to sell the propertiesor use the rental revenue.All properties are leased under operational lease agreementsand generate rental revenue. The rental revenue during the periodamounted to KSEK 5,265,220 (5,115,849) and the direct costs forthe properties during the period totalled KSEK -1,926,174 (-1,989,548).

AKAdEmISKA HuS 2012106 FINANCIAL REPORTS; NOTES21 Shares in Group companiesSpecification of the Parent Company’s shareholdings in Group companies:PARENT COMPANYCOMPANYREG. NO.REGISTEREDOFFICETOTAL NUMBEROF SHARESSHARE OFEQUITY IN % 1) 31-12-2012CARRYING VALUE31-12-2011CARRYING VALUEAkademiska Hus Syd AB 2) 556467-8786 lund 0 (85,000) 0 (100) — 169,950Akademiska Hus Väst AB 2) 556467-8760 Gothenburg 0 (95,000) 0 (100) — 189,950Akademiska Hus Öst AB 2) 556467-8778 linköping 0 (50,000) 0 (100) — 99,950Akademiska Hus uppsala AB 2) 556467-8745 uppsala 0 (55,000) 0 (100) — 273,950Akademiska Hus Stockholm AB 2) 556467-8737 Stockholm 0 (335,000) 0 (100) — 669,950Akademiska Hus norr AB 2) 556467-8752 umeå 0 (50,000) 0 (100) — 159,950Akademiska Hus utveckling och Support AB 556610-2975 Gothenburg 500 (500) 100 (100) 500 500Kunskapsmiljön 2 AB 556829-2816 lund 500 (0) 100 (0) 50 —datja Fastighets AB 556745-5703 Stockholm 500 (0) 100 (0) 100 —TOTAL 650 1,564,2001)corresponds to the number of votes.2)Following a merger, these companies became part of the Parent company as of 31-12-2012.22 Derivatives (Group)Derivatives are used to handle interest risk exposure and to eliminate currency risks in conjunction with financing in a foreign currency.The fair value of interest and currency swap agreements includes the underlying capital amounts and accrued interest. The Group’s riskmanagement is described in Note 36 Financial Risk Management.Carrying amounts, derivatives, are broken down as follows:31-12-2012 31-12-2011ASSETS LIABILITIES ASSETS LIABILITIESNON-CURRENTIndependent derivatives- interest swaps 126,632 393,046 68,854 360,119- currency interest swaps 452,286 — 527,524 —Hedging instruments, fair value hedging- interest swaps 188,618 3,666 220,729 —- currency interest swaps 1,098,478 — 2,010,823 —Hedging instruments, cash flow hedging- currency forwards 533 6,562 71 5,928- electricity futures — 12,806 — 12,965TOTAL, NON-CURRENT 1,866,547 416,080 2,828,001 379,012CURRENTIndependent derivatives- interest swaps 51,515 7,911 119,071- currency forwards — — — —Hedging instruments, fair value hedging- currency interest swaps 381,930 — 180,242 —Hedging instruments, cash flow hedging- currency forwards 388 63,715 90,467 15,117- electricity futures — 17,013 — 20,285TOTAL, CURRENT 382,318 132,243 278,620 154,473TOTAL, DERIVATIVES 2,248,865 548,323 3,106,621 533,485Fair value is equivalent to the carrying amount in the table above.The maturity structure of the Group’s derivatives is as follows, SEK m:31-12-2012 31-12-2011INDEPENDENT DERIVATIVES 1) FAIR VALUE HEDGING 2) CASH FLOW HEDGING 3) INDEPENDENT DERIVATIVES 1) FAIR VALUE HEDGING 2) CASH FLOW HEDGING 3)NominalamountFairvalueNominalamountFairvalueNominalamountFairvalueNominalamountFairvalueNominalamountFairvalueNominalamount2013 2,513 2 -2,136 382 -285 -28 3,154 27 -963 180 -296 -332014 -550 -43 -1,780 323 -199 -15 2,261 -66 -2,199 486 -214 -142015 -424 406 -1,000 197 -92 -4 950 -36 -1,832 432 -109 -52016 -350 -17 -1,068 53 — — -1,134 501 -1,000 245 — —2017 100 -31 — — — — -350 -24 -1,099 92 — —2018 400 -27 -2,536 501 — — 400 -32 — — — —2019 1,000 -113 — — — — 400 -27 -2,722 734 — —2020 andlater1,181 -8 -1,424 216 — — 1,660 -119 -1,466 244 — —TOTAL 3,870 169 -9,944 1,672 -576 -47 7,341 224 -11,281 2,413 -619 -521)nominal amount, independent derivatives. A positive amount constitutes an extension of the portfolio’s fixed interest.2)nominal amount, fair value hedging. A negative amount constitutes a purchase of foreign currency.3)nominal amount, cash flow hedging. A negative amount constitutes a purchase of foreign currency and/or a purchase of electricity futures.Fairvalue

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES107The table below shows the due date structure for derivatives, SEK million, which constitute hedging instruments in cash flow hedging.31-12-2012 31-12-2011CURRENCY FORWARDS 1) ELECTRICITY FUTURES 2) CURRENCY FORWARDS 1) ELECTRICITY FUTURES 2)Nominal amount Fair value Nominal amount Fair value Nominal amount Fair value Nominal amount Fair value2013 -149 -11 -136 -17 -154 -13 -142 -202014 -98 -5 -101 -10 -105 -5 -109 -92015 -44 -1 -48 -3 -53 -1 -56 -4TOTAL -291 -17 -285 -30 -312 -19 -307 -331)nominal amount, currency forwards. A negative amount constitutes a purchase of foreign currency.2)nominal amount, electricity futures. A negative amount constitutes a purchase of electricity futures.The following table shows the due date structure for forecast electricity use together with electricity futures and exchange derivativesentered into with the aim of hedging the electricity price. All outstanding currency hedgings are in EUR/SEK.FORECAST USE, MWH HEDGING LEVEL, PRICE, % HEDGING LEVEL, CURRENCY, %2013 460,000 78 752014 460,000 57 572015 460,000 29 2823 Other non-current receivablesGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Interest-bearing note 274,952 267,274 274,952 —non-interest-bearing note — 52,815 — —Other non-interestbearingreceivables158,276 136,924 158,276 15TOTAL 433,228 457,013 433,228 15Other non-current receivables are reported and valued accordingto the loan receivables and accounts receivable category. Fair valueis equivalent to the carrying amount of other non-current receivables.Of the Group’s non-current receivables, KSEK 368,523 isexpected to be realised within five years of the year-end andKSEK 64,705 later than five years.The interest-bearing note changed as follows:GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening balance 267,274 267,274 — —Addition following mergerof subsidiaries— — 267,274 —Provisions for the year 7,678 — 7,678 —Reversed provisions — — — —Established credit losses — — — —CLOSING BALANCE 274,952 267,274 274,952 0The non-interest-bearing note changed as follows:GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening balance 52,815 52,815 — —Addition following mergerof subsidiaries— — 52,815 —Provisions for the year — — — —Reversed provisions -52,815 — -52,815 —Established credit losses — — — —CLOSING BALANCE 0 52,815 0 0Other non-interest-bearing receivables changed as follows:GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening balance 136,924 111,255 15 15Addition following mergerof subsidiaries— — 136,909 —Provisions for the year 21,352 25,669 — —Reversed provisions — — — —Established credit losses — — — —CLOSING BALANCE 158,276 136,924 136,924 1524 Rent receivables and accounts receivableRent receivables andaccounts receivableProvision, doubtful rentreceivables and accountsreceivableGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011288,461 383,105 288,461 —-55 -3,342 -55 —TOTAL 288,406 379,763 288,406 0Rent receivables and accounts receivable are reported and valuedaccording to the loan receivables and accounts receivable category.The fair value of rent receivables and accounts receivable concurswith the carrying value as of the year-end, and there is no impairmentrequirement.Of the rent receivables and accounts receivable that had fallendue as of December 31, 2012, KSEK 119,475 had fallen due by 1–5days, KSEK 1,221 had fallen due by 5–30 days, KSEK 2,444 hadfallen due by 30–60 days and KSEK 2,575 had fallen due by morethan 60 days. Receivables falling due do not include impairedreceivables.Rent receivables and accounts receivable changed as follows:GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening balance 383,105 273,941 — —Addition following mergerof subsidiaries— — 288,461 —Provisions for the year -94,644 109,164 — —Reversed provisions — — — —Established credit losses — — — —CLOSING BALANCE 288,461 383,105 288,461 —The provision for doubtful rent receivables and accounts receivablechanged as follows:GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening balance -3,342 -1,195 — —Addition following mergerof subsidiaries— — -3,342 —Provisions for the year -184 -2,921 -184 —Reversed provisions 2,652 774 2,652 —Established credit losses 819 — 819 —CLOSING BALANCE -55 -3,342 -55 —

AKAdEmISKA HuS 2012108 FINANCIAL REPORTS; NOTES25 Other receivables29 Hedge reserve/Fair value reserveGROUPPARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011VAT receivable 269,489 119,716 269,489 948Settlement, taxes andcharges119,907 56,019 119,907 1,994Other current receivables 28,172 39,600 28,775 915TOTAL 417,568 215,335 418,171 3,857Other current receivables are reported at cost.26 Prepaid expenses and accrued incomeGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Accrued rent 59,098 51,756 59,098 —Prepaid rent 3,734 2,687 3,734 1,199Accrued interest income 3,050 218 3,050 218Prepaid interest expense 290 290 290 290Prepaid energy costs 1,278 8,213 1,278 —miscellaneous 85,475 98,724 85,475 40,467TOTAL 152,925 161,888 152,925 42,17427 Due date structure, receivablesGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011due date structureReceivables expected tobe cleared within one year 1,385,706 1,103,876 1,386,323 21,725,584of the year-endReceivables expected tobe cleared within 1–5 1,457,617 2,216,230 1,457,617 1,812,697years of the year-endReceivables expected tobe cleared later than five 842,158 1,068,784 842,158 1,015,319years after the year-endTOTAL 3,685,481 4,388,890 3,686,098 24,553,60028 Cash and cash equivalentsCurrent investments mainly comprise temporary surplus liquidity,invested short-term, totalling KSEK 2,546,050 (4,416,457) andcollateral granted attributable to Credit Support Annex (CSA)agreements totalling KSEK 151,052 (0). Blocked bank funds inrespect of pledged assets for stock market-cleared derivatives areincluded to the amount of KSEK 119,318 (118,916) in the reportedamount for cash and bank balances for the Group and the ParentCompany. This is a buffer to cover expected daily collateralrequirements.Cash and cash equivalents according to the Cash Flow Statementsconcur with cash and cash equivalents in the Balance Sheet.GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011OPENING BALANCE -38,270 33,843 -38,270 33,843change in value, derivatives(cash flow hedging)- currency forwards 29,147 7,599 29,147 7,599- electricity futures 9,585 -140,432 9,585 -140,432Transferred to operatingprofit-33,273 34,987 -33,273 34,987Tax effect -1,200 25,733 -1,200 25,733CLOSING BALANCE -34,011 -38,270 -34,011 -38,270The tax effect, KSEK -1,200 (25,733) refers to the change for theyear. The closing deferred tax receivable/payable is reported in Note16 Taxes.30 LoansThe Group’s financing takes place mainly through borrowing viathe public financing programmes. Through their standardisedterms and conditions, these permit rational, cost-effective financing.The Group has a domestic commercial paper programme, anMTN programme (not updated since 2009) and international ECPand EMTN programmes. Bank financing is used to a limitedextent. The average capital for bank financing during 2012 wasSEK 249 million (161).The Group’s risk management is presented in Note 36 Financialrisk management.Financing costNet interest income and expense amounted to SEK -682 million(-452) and the average liability portfolio was SEK 18,904 million(17,320). The financing cost amounted to 4.21 per cent (2.99), calculatedas the interest expense in relation to average interest-bearingnet loan liability, excluding cash and bank holdings, according toIFRS. As of December 31, 2012, the average rate of interest on theoutstanding liability portfolio was 2.42 per cent (3.05) excludinginterest derivatives, and 2.90 per cent (3.34) including interestderivatives.FINANCING COST, % 2008 2009 2010 2011 2012Financing cost for loans 4.69 1.70 1.18 2.75 2.72net interest income and expense,interest rate swaps 0.00 0.60 0.96 0.44 0.4charges 0.02 0.02 0.03 0.03 0.03Financing costs, excluding IFRS 4.71 2.32 2.17 3.22 3.15changes in value, financialinstruments-1.25 1.31 -0.33 -0.23 1.06TOTAL FINANCING COST 3.46 3.63 1.84 2.99 4.21GROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011current investments 2,697,102 4,416,457 2,697,102 4,416,457cash and bank holdings 549,512 173,150 549,357 172,942TOTAL 3,246,614 4,589,607 3,246,459 4,589,399Cash and cash equivalents are reported and valued according tothe category ‘assets valued at fair value in profit or loss’. Fair valueis equivalent to the carrying amount of cash and bank holdingsand current investments.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES109Borrowing can be broken down as follows, SEK m:CarryingamountGROUPPARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Fair valueCarryingamountFair valueCarryingamountFair valueCarryingamountFair valueCATEGORY, OTHER FINANCIAL LIABILITIESBonds & mTn 1,319 1,414 1,319 1,360 1,319 1,414 1,319 1,360EmTn 7,977 8,737 6,706 7,237 7,977 8,737 6,706 7,237Other loans 420 467 195 172 420 467 - -TOTAL 9,716 10,618 8,220 8,769 9,716 10,618 8,025 8,597CATEGORY, FINANCIAL LIABILITIES VALUED AT FAIR VALUE IN PROFIT OR LOSS ACCORDING TO THE FAIR VALUE HEDGING METHODBonds & mTn 1,321 1,310 1,347 1,347 1,321 1,310 1,347 1,347EmTn 4,635 4,631 6,943 6,943 4,635 4,631 6,943 6,943Other loans 2,621 2,617 2,840 2,841 2,621 2,617 2,841 2,841TOTAL 8,577 8,558 11,130 11,131 8,577 8,558 11,131 11,131TOTAL NON-CURRENT LOANS 18,293 19,176 19,350 19,900 18,293 19,176 19,156 19,728CATEGORY, OTHER FINANCIAL LIABILITIESEcP 2,006 2,000 2,357 2,345 2,006 2,000 2,357 2,345Other loans 8 12 8 7 8 12 — —TOTAL 2,014 2,012 2,365 2,352 2,014 2,012 2,357 2,345CATEGORY, FINANCIAL LIABILITIES VALUED AT FAIR VALUE IN PROFIT OR LOSS ACCORDING TO THE FAIR VALUE HEDGING METHODBonds & mTn — — 447 447 — — 447 447EmTn 2,162 2,166 525 525 2,162 2,166 525 525TOTAL 2,162 2,166 972 972 2,162 2,166 972 972TOTAL CURRENT LOANS 4,176 4,178 3,337 3,324 4,176 4,178 3,329 3,318TOTAL LOANS 22,469 23,354 22,687 23,224 22,469 23,354 22,485 23,046The above table shows amounts excluding accrued coupon interest.Due date structure, loans, SEK mFIXED INTERESTVARIABLE INTERESTLoans Derivatives Sub-total LoansECP and commercialpaper Derivatives Sub-total Total2013 2,136 -818 1,318 — 2,002 541 2,543 3,8612014 1,780 -830 950 — — 580 580 1,5302015 4,124 -1,174 2,950 500 — 992 1,492 4,4422016 1,918 -668 1,250 500 — 668 1,168 2,4182017 — 400 400 — — -400 -400 —2018 2,836 -2,136 700 — — 1,908 1,908 2,6082019 120 1,000 1,120 — — -1,000 -1,000 1202020 and later 5,463 -524 4,939 345 — 479 824 5,762TOTAL 18,376 -4,750 13,627 1,345 2,002 3,768 7,114 20,741The above table shows financing (nominal amount) together withoutstanding interest and currency forwards. Loans and derivativesin foreign currency have been translated at year-end exchangerate. As all loans raised in a foreign currency are swapped toSwedish kronor, the exchange rate effect is neutralised. A positivefigure means that the Group pays interest and a negative figuremeans that the Group receives interest.Material contractual terms and conditionsThe Group’s bond programmes, MTN and EMTN, include a clauseregarding government ownership. In the event the Swedishgovernment ceases to be the holder, directly or indirectly, of morethan 50 per cent of the shares in Akademiska Hus AB, equivalentto more than 50 per cent of the shares and more than 50 per centof the votes, the bonds fall due for payment immediately. Thecontractual terms and conditions for the short-term financingprogrammes do not include any equivalent undertaking. Eversince the programmes were established, the Group’s policy hasbeen not to accept any other terms and conditions that require acertain rating, equity ratio or interest coverage ratio to be maintained.Hedge accountingWhen financing in a foreign currency, all future payment flows arehedged so that the exchange risk is eliminated. Through currencyinterest swap agreements, all interest payments, both fixed andvariable, are hedged as well as future repayments. All the measurestaken have the express purpose of hedging and eliminating anexchange rate risk so that all financing is denominated in Swedishkronor. Effective hedging means that changes in the value of thehedged position and the actual hedging transaction on balancecounteract each other.

AKAdEmISKA HuS 2012110 FINANCIAL REPORTS; NOTES30 continuedCurrency distributionThe Group’s financing as of year-end is distributed as follows under the original currency and in SEK m after taking into accountcurrency and interest swap agreements:Nominalamount Interest %Interest %in SEK31-12-2012 31-12-2011Amount inSEK m 1)Nominalamount Interest %Interest %in SEKAmount inSEK m 1)SWAPPED TO SEKEcPuSd 308 0.33 1.39 2,006 342 0.49 2.27 2,357SUB-TOTAL 2,006 2,357mTnEuR — — — — — — — —SUB-TOTAL — —EmTncHF 1,100 2.51 1.97 8,219 1,150 2.53 2.98 8,780uSd 22 4.09 2.55 151SUB-TOTAL 8,219 8,931OTHER LOANScHF 250 2.35 1.49 1,820 250 2.35 2.50 1,904JPY 10,000 1.84 1.43 800 15,000 1.56 2.54 1,384SUB-TOTAL 2,620 3,288TOTAL 12,845 14,576UNSWAPPED (IN SEK M)commercial paper — — — — — — — —Bonds & mTn 8,925 3.21 3.19 9,195 5,320 3.01 3.22 7,909Other loans 428 3.35 3.35 428 202 2.08 2.08 202SUB-TOTAL 9,623 8,111TOTAL 22,468 22,6871)Refers to carrying amount31 Allocations to pensions and similar commitmentsDefined contribution pension plansThe Group’s defined contribution pension plans, so-called alternativeITP or a pension for high-income earners, as well as individualpension assurances to leading executives, cover employees in allGroup companies. The defined contribution pension plans mainlycomprise a retirement pension, sickness pension and family pension.The premiums are paid continuously throughout the year byeach Group company to different insurance companies. The premiumsare based on salary.The pension costs for the year amounted to KSEK 12,902(13,573).Defined benefit pension plansAll employees in the Group companies are covered by definedbenefit pension plans. According to these plans, the employees areentitled to pension benefits based on their pensionable income aswell as the number of years of service. The pension plan mainlycomprises a retirement pension, sickness pension and familypension. The pension commitments are secured through provisionsin the FPG/PRI system and the ITP plan family pension, sicknesspension and occupational group life through insurance premiums.All pension commitments which the Akademiska Hus Group tookover from the National Board of Public Building when the Companywas formed on October 1, 1993 are defined benefit plans, securedthrough provisions in the Balance Sheet, guaranteed by the NationalDebt Office and administered by the National GovernmentEmployees’ Pension Board (SPV).The most recent actuarial calculation of the current value of thedefined benefit commitments was carried out by an authorisedactuary on December 31, 2012. When calculating the current valueof the defined benefit commitments and associated costs foremployment during the current period and associated costs foremployment during previous periods, the Projected Unit CreditMethod was used.Information regarding the reporting of defined benefit pensionplans which cover several employers – AlectaThe retirement pension and family pension undertaking for whitecollarworkers in Sweden is secured through insurance with Alecta.According to statements from the Swedish Financial ReportingBoard, UFR 3 and UFR 6, this is a defined benefit plan coveringseveral employers. For the 2012 financial year, the Company didnot have access to such information that makes it possible to reportthis plan as a defined benefit plan. The pension plan accordingto ITP, which is secured through insurance with Alecta, istherefore reported as a defined contribution plan. The charges forthe year for pension insurance taken out with Alecta total SEK 6.9million (5.8). Alecta’s surplus can be distributed to the policyholdersand/or the insured. At the end of 2012, Alecta’s surplus in theform of the collective consolidation level amounted to 129 per cent(113). The collective consolidation level comprises the market valueof Alecta’s assets as a percentage of the insurance undertakings,calculated according to Alecta’s insurance calculation assumptions,which do not concur with IAS 19.The effects of the changes in IAS 19 that come into effect onJanuary 1, 2013 are presented in Note 3.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES111The actuarial computation of the pension commitments and pensioncosts is based on the following assumptions:31-12-2012 31-12-2011discount rate 2.20 2.40Salary increase 3.10 3.10Inflation 1.60 1.60Income base amount 2.60 2.60Personnel turnover 2.00 2.00Remaining period of service, years 15.20 15.50The total pension cost for the Group is as follows:2012 2011Benefits earned during the year 14,086 8,910Interest on the pension provision 8,512 10,725Actuarial gains (-) and losses (+) 3,527 975PENSION COSTS, DEFINED BENEFIT PLANS 26,125 20,610Pension costs, defined contribution plans 19,834 19,349Employer's contribution and tax on returns,other pension costs8,330 10,642TOTAL PENSION COSTS 54,289 50,601The following provisions attributable to the Group’s defined benefitcommitment have been made in the Balance Sheet:31-12-2012 31-12-2011current value of the commitment at the period-end 373,509 355,086Actuarial profits (+) losses (-) brought forward -86,135 -82,396ALLOCATED TO PENSIONS 287,374 272,690Pension commitments and provisions for pension undertakings andnet actuarial gains/losses for the defined benefit plans havechanged as follows:PENSION COMMITMENTS 31-12-2012 31-12-2011Opening balance 272,690 261,764Benefits earned during the year 14,086 8,910Interest expense 8,512 10,725Amortisation, actuarial gains (+)/losses (-) 3,527 975Paid benefits -11,444 -9,684CLOSING BALANCE 287,371 272,690ACTUARIAL GAINS/LOSSES 31-12-2012 31-12-2011Opening balance, actuarial gains (+)/losses (-) -82,396 -38,078Actuarial gains (+)/losses (-) to be reported 3,527 975Actuarial gains (+)/losses (-) on pensioncommitments-7,266 -45,293CLOSING BALANCE,ACTUARIAL GAINS (+)/LOSSES (-)-86,135 -82,396Provisions for pensions and similar commitments inthe Parent CompanyThe reported pension liability in the Parent Company comprises:31-12-2012 31-12-2011FPG/PRI PENSIONS 23,890 21,796Additional FPG/PRI pensions following merger ofsubsidiaries148,339 -Other pensions 54,789 54,553Additional pensions following merger of subsidiaries26,319 -TOTAL 253,337 76,349Other pensions in the Parent Company refer mainly to the historicalpension liability that was taken over from the National Board ofPublic Building when the Akademiska Hus Group was founded.Pension commitments and provisions for pension commitments forthe defined benefit plans in the Parent Company have changed asfollows:PENSION COMMITMENTS 31-12-2012 31-12-2011Opening balance 76,349 75,599Addition following merger of subsidiaries 167,754 —Other changes 10,325 3,011Interest costs 10,446 3,419Payments -11,537 -5,680CLOSING BALANCE 253,337 76,349The total pension cost in the Parent Company is broken down asfollows:2012 2011Other income/costs for changes inthe pension liability10,325 3,011Interest part of the pension cost 10,446 3,419PENSION COSTS, DEFINED BENEFIT PLANS 20,771 6,430Pension costs, contribution-based plans 19,834 5,853Employer's contribution and tax on the yield,other pension costs8,330 2,814TOTAL PENSION COSTS 48,935 15,097Actuarial assumptionsThe actuarial calculation of pension commitments and pensioncosts in the Parent Company is based on the actuarial assumptionslaid down in the FPG/PRI system and by the Swedish Financial SupervisoryAuthority.In addition to the effect of amended actuarial assumptions, such asthe change in the discount interest rate etc., actuarial gains andlosses have occurred because of a deviation from the basic experiencebasedassumptions. Deviations from experience-based assumptionsinclude unexpectedly high or low figures for staff turnover, earlyretirement, lifespan and salary increases. The effect of such deviationsis positive and amounts to approximately SEK 2.7 million withregard to the defined benefit-based assessments.Future paymentsThe Group is expected to pay KSEK 35,127 (26,125) in charges forthe defined benefit plans during the forthcoming financial year.

AKAdEmISKA HuS 2012112 FINANCIAL REPORTS; NOTES32 Other liabilitiesOther interest-bearingliabilities (cSA)Other non-interestbearingliabilitiesTOTAL, OTHERLIABILITIESGROUPPARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-20111,007,353 1,254,425 1,007,353 1,254,425169,580 220,455 169,971 13,7921,176,933 1,474,880 1,177,324 1,268,217Other liabilities are reported and valued according to the Otherfinancial liabilities category. The fair value is equivalent to thecarrying amount of Other liabilities.The Parent Company has entered into a supplementary agreement,a Credit Support Annex (CSA) to the ISDA agreement, withthe aim of handling exposure to counter-party risks in derivatives.The agreement means that the parties mutually undertake to furnishcollateral in the form of cash and cash equivalents or securitieswith a good rating for undervalues in outstanding derivatives.The agreement in turn gives the secured party right of disposal ofcollateral received. As of the year-end, the Group received collateralthrough the CSA agreements totalling KSEK 1,007,353 (1,254,425).Of the Group’s other liabilities, KSEK 1,119,820 falls due for paymentwithin one year of the year-end, KSEK 36,272 within 1–5years of the year-end, and KSEK 20,841 later than five years afterthe year-end.33 Accrued expenses and prepaid incomeGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Prepaid rental revenue 1,250,302 1,254,959 1,250,302 —Accrued salary andpersonnel costs24,142 27,582 24,142 6,305Accrued operating andmaintenance costs41,839 42,459 41,839 343Accrued investments 78,756 102,720 78,756 —Accrued interest 280,583 279,123 280,583 279,122Other interim liabilities 36,326 22,391 36,326 12,432TOTAL 1,711,948 1,729,234 1,711,948 298,20234 Due date structure, liabilitiesGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011DUE DATE STRUCTUREliabilities that fall duefor payment within one 7,554,702 6,948,185 7,557,312 5,076,412year of year-endliabilities that fall duefor payment within 1–5 9,502,291 10,916,307 9,502,291 10,858,569years of year-endliabilities that fall due forpayment later than five 16,148,504 16,687,665 9,860,118 8,768,902years after year-endTOTAL 33,205,497 34,552,157 26,919,721 24,703,88335 Financial instruments valued at fair valueThe table below shows the financial assets and liabilities that arevalued at fair value. They are classified in a hierarchy, comprisingthree levels based on the information used to set their fair value.Level 1 refers to when a fair value is set based on listed prices onan active market for identical financial assets or liabilities. Level 2refers to when a fair value is set based on observable informationother than listed prices on an active market. Level 3 refers to whenthe set fair value is based to a material extent on information thatis not observable, i.e. the Company’s own assumptions.The fair value of financial assets and liabilities is set by usinginformation that is attributable to one or more of the abovementionedlevels. The classification is determined by the lowestlevel in the hierarchy for the information that has a materialimpact on the value.The Group mainly holds derivatives that are on level 2. Thevaluation of instruments is done according to the zero couponmethod, which means that all the future cash flows of the instrumentare set at the current value. The zero coupon interest ratesused to discount the cash flows are calculated with the aid ofSTIBOR/LIBOR for short-term interest rates and swap notationsfor longer terms. The source of this information is real-time datafrom Thomson/Reuters.ASSETSLEVEL 1 LEVEL 2 LEVEL 3 TOTALInVESTmEnTS- current investment — 2,697,102 — 2,697,102IndEPEndEnT dERIVATIVES- interest swaps — 126,632 — 126,632- currency rate interest swaps — 452,286 — 452,286HEdGInG InSTRumEnTS, FAIRVAluE HEdGInG- interest swaps — 188,618 — 188,618- currency rate interest swaps — 1,480,408 — 1,480,408HEdGInG InSTRumEnTS,cASH FlOW HEdGInG- currency forwards — 921 — 921TOTAL ASSETS — 4,945,967 — 4,945,967LIABILITIESIndEPEndEnT dERIVATIVES- interest swaps — 444,561 — 444,561HEdGInG InSTRumEnTS,cASH FlOW HEdGInG- currency forwards — 70,277 — 70,277- electricity futures 29,819 — — 29,819TOTAL LIABILITIES 29,819 518,504 — 548,323

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES11336 Financial risk management (Group)In its capacity as a net borrower, the Group is exposed to financialrisks, particularly interest rate risks, refinancing risks, credit risksand exchange rate risks. The governing document, the FinancePolicy, is adopted each year by the Board. It contains the long-termstrategic orientation, allocation of liability, the Group’s approachto financial risks and the mandate to handle these risks. Plans tohandle financial risks for the coming year are adopted in Decemberand include authorisation and mandates as well as concrete plansfor financing operations. The Group’s financial management iscentralised at the Parent Company’s Treasury Department, whichallows effective and co-ordinated financial risk management.Interest riskThe term ‘interest risk’ refers to the negative impact on Groupprofit because of a change in market interest rates. The Group’s interestrate risk exposure is high due to the relatively high leverage.The handling of the interest risk in the form of a choice of a fixedinterest period in the liability portfolio is consequently one of themost important tasks. The Finance Policy states that the interestrisk should be handled within a fixed interest mandate for thebasic portfolio adopted by the Board. The current mandate statesthat the fixed interest period, including interest swaps, should be2–5 years (2–4.5 years). The Group defines the average fixed interestperiod as a measure of the sensitivity in net interest incomeand expense in conjunction with a change in the market interestrates. The Group uses interest swaps as a means of adjusting and securingthe desired fixed interest period. The point of departure,however, is that these derivatives should be used mainly when thedesired fixed interest period is difficult to achieve within existingborrowing or can only be achieved at a considerable additionalcost.The fixed interest period at the year-end was 3.2 years (3.1),including interest swaps. The average fixed interest period duringthe year was 3.3 years (3.0).Since 2011, bonds with fixed interest and maturity terms inexcess of 15 years have been handled in a separate long-term bondportfolio. The reason is that the customary risk figure for the fixedinterest mandate (average fixed interest period) will be distortedwhen the portfolio contains a relatively limited proportion ofbonds with extremely long fixed interest periods and maturities.Bonds with terms in excess of 15 years represent a significantinterest risk exposure, which justifies a separate mandate. Thisportfolio must therefore not comprise more than 30 per cent of thetotal portfolio. At the turn of the year, long-term bonds totallingSEK 3,155 million were issued, equivalent to 15.5 per cent of thetotal portfolio.Due date structure for fixed interest periods andliability maturity, SEK mMATURITY,LOANSFIXED INTERESTPERIOD, LOANSFIXED INTERESTPERIOD, DERIVATIVESFIXED INTERESTPERIOD, TOTAL2013:1 1,969 3,169 4,521 7,6912013:2 32 32 564 5972013:3 2,136 2,136 -2,136 02013:4 0 1,000 0 1,0002014 1,780 1,925 -830 1,0952015 4,624 3,124 -1,174 1,9502016 2,418 1,918 -668 1,2502017 0 0 400 4002018 2,836 2,836 -2,136 7002019 120 120 1,000 1,1202020 andlater5,807 5,463 -524 4,939TOTAL 21,723 21,723 -982 20,741Currency riskA currency risk is the risk that exchange rate changes will have anegative impact on the Consolidated Statement of ComprehensiveIncome and Consolidated Statement of Financial Position. Inconjunction with borrowing in a foreign currency, the Group isexposed to a currency risk and as the Group’s operations are exclusivelyin Swedish kronor, the policy is that all exchange rate risk inconjunction with financing in a foreign currency should be eliminated.All payment flows in foreign currency attributable toborrowing are exchange-hedged with the aid of forward rateagreements and currency swap agreements. This means that theGroup does not have any currency risk in conjunction withborrowing in a foreign currency.In accordance with the currency mandate in the Electricitytrading policy, the exchange rate exposure attributable to outstandingelectricity derivatives is hedged with the aid of currencyfutures.Currency breakdown, loans and derivatives, SEK mOriginal currency LOANS DERIVATIVES TOTALcHF 9,612 -9,612 —JPY 756 -756 —SEK 9,353 11,388 20,741uSd 2,002 -2,002 —TOTAL 21,723 -982 20,741The table above shows the nominal amounts. The nominalamounts were recalculated using the year-end rate.Liquidity and refinancing riskThe term ‘refinancing risk’ refers to the risk that the cost is higheror that the financing opportunities are limited when the loans thatfall due are to be renewed. The Finance Policy states that unutilisedcredit facilities should be in place to a sufficient extent to guaranteegood payment capacity. The aim is to limit the costs by seekingto strike a balance between short-term, medium-term and longtermfinancing, and endeavouring to achieve diversificationbetween different financing arrangements and markets. Loansthat fall due should have a spread so that a maximum of 40 percent fall due for refinancing within a 12-month period.The Group has a very good credit rating, which offers a goodopportunity to achieve the diversification aimed for through thepublic financing programmes.The Group’s liquid assets at the end of 2012 totalled SEK 3,246million (4,590). At year-end, bank facilities granted totalled SEK3,500 million (3,500), of which SEK 1,500 million (1,500) was unconfirmed.Facilities and ratingRATING STAND-ARD & POOR'SFRAMEWORK31-12-2012UTILISEDNOM.31-12-2012Bank SEK 3,500 m —commercial paper A1+/K1 SEK 4,000 m —EcP (Euro commercial Paper) A1+ EuR 600 m EuR 239 mmTn (medium Term note) 1) AA SEK 8,000 m SEK 2,320 mEmTn (Euro medium Term note) AA/A1+ EuR 2,000 m EuR 1,608 m1)not updated since 2009.The above table shows nominal amounts. The nominal amounts havebeen recalculated at the year-end rate. As all loans that are raised inforeign currency are swapped to Swedish kronor, the exchange rateeffect is neutralised. A positive figure means that the Group pays interestand a negative figure means that the Group receives interest.

AKAdEmISKA HuS 2012114 FINANCIAL REPORTS; NOTES36 continuedThe table below shows the remaining contractual term for theGroup’s financial liabilities. The liquidity flows are undiscountedand foreign flows have been translated at the rate on the closingdate. For those instruments where the future variable rate ofinterest is unknown, the rate of interest has been calculated withthe aid of the implicit forward interest rates for the yield curve onthe closing date.Use is made primarily of rental revenue to meet the obligationslinked to the Group’s financial liabilities presented in the tablebelow. The rental revenue falls due for payment quarterly and issubject to long agreement terms. The credit risk associated withrental revenue is considered low.Liquidity risk, SEK mHEDGEDDERIVA-TIVE IN- DERIVA-CURRENTINVEST- ACCOUNTSLOANS LOANS SURANCE TIVES MENTS PAYABLE2013:1 -34 -2,094 21 -57 2,350 4152013:2 -50 -49 -28 -63 200 —2013:3 -80 -2,236 385 27 — —2013:4 -131 -43 -4 -4 — —2014 -294 -2,010 364 -80 — —2015 -2,496 -2,842 492 -60 — —2016 -1,581 -1,168 -2 -35 — —2017 -195 -84 -14 -29 — —2018 -495 -2,620 222 -13 — —2019 -303 -32 -16 -19 — —2020 andlater-7,016 -1,489 45 16 — —TOTAL -12,673 -14,667 1,466 -319 2,550 415Positive value = payments received, negative value = payments madeCredit risk and counter-party riskThe terms ‘credit risk’ and ‘counter-party risk’ refer to the risk of aloss if a counter-party does not fulfil its undertakings. The Groupis exposed when surplus liquidity is placed in financial assets andin conjunction with trade in derivatives. The Group applies a conservativecounter-party risk. The Finance Plan includes a limitsystem for handling financial risks where permitted exposuredepends on the counter-party’s credit rating and the maturity ofthe involvement. The limits are related to the Group’s risk capacityin the form of equity and are decided by the Board.As the Group is in the long term a net borrower, periods ofsurplus liquidity are more of a temporary nature. Investmentsshould therefore be characterised by good liquidity in the secondarymarket and be in accordance with the limit structure.The Group’s policy is that internationally standardised nettingagreements, ISDA agreements, should always be signed with acounter-party before uncleared derivative transactions take place.As of December 31, 2012, the total counter-party exposure inderivatives (calculated as the net claim per counter-party) stood atSEK 1,855 million (5,930). With the aim of further reducing exposureto a counter-party risk, the Parent Company has entered intoa number of supplementary agreements, Credit Support Annexes(CSA), to the ISDA agreements. The agreements mean that theparties mutually undertake to place collateral in the form of cashand cash equivalents or bonds for the value deficits in outstandingderivative contracts. At the year-end, the Group had received SEK856 million (1,254) net.The table below shows the Group’s exposure to counter-partyrisks divided according to different rating categories.Counter-party risks, excluding rent receivables, SEK mRECEIV-ABLELIA-BILITYCOLLATERALRECEIVED/GRANTEDNETEXPOSUREINSTITUTES WITH ALONG RATINGAAA/Aaa — — — —AA+/Aa1 — — — —AA/Aa2 — — — —AA-/Aa3 — -29 -13 -42A+/A1 1,183 -82 -846 255A/A2 974 -3 — 971A-/A3 112 -39 -68 5INSTITUTES WITHONLY A SHORT RATINGA-2 499 — — 499K-1 350 — — 350clearing institutes 12 — -6 6companies wholly owned bythe Swedish Government1,297 — — 1,297TOTAL 4,427 -153 -933 3,341Positive figure = Group receivable, negative figure = Group liabilityCredit risk attributable to rent receivablesA large proportion of the Group’s receivables are rent receivables.The maximum credit risk exposure for rent receivables andaccounts receivable is equal to their carrying values. However, theassessed credit risk in rent receivables is low in the light of thehigh credit rating of the tenants.Electricity price riskThe Board of Directors decides on an Electricity Trading Policythat governs the risk approach and mandate for handling the electricityprice risk. The term ‘electricity price risk’ refers to the riskthat the future price of electricity will affect the Group’s operatingcosts negatively. With the aim of reducing exposure to changes inthe electricity price, different derivatives are used (electricity futures).The Group stipulates a long-term price hedging strategy.Trade in physical electric power (spot) and price-hedging instrumentstakes place through Nord Pool. To limit the counter-partyrisk, all financial trade is cleared through Nord Pool.Interest analysis, liability portfolioThe average rate of interest can be determined for outstandingloans and interest derivatives with a fixed and variable rate ofinterest at the end of each period. As loans and interest swaps falldue and are replaced with new loans and interest swaps, the rate ofinterest changes. Bonds issued at a fixed rate of interest providepredictable interest expense over long periods. During 2013,interest swaps totalling SEK 1,260 million fall due with an averagefixed rate of interest of 4.7 per cent. This presents scope forextending the fixed interest period at a limited cost.The average rate of interest in the total portfolio was 2.9 percent at the year-end.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; NOTES115Interest-bearing liability at year-end and the average rate of interest.PERIODBONDS,SEK MFIXED IN-TEREST, %BONDS,SEK MVARIABLEINTER-EST, %ECP,SEK MINTEREST,%TOTAL,SEK MINTER-EST, %SWAPS,SEK MFIXED IN-TEREST, %SWAPS,SEK MVARIABLEINTER-EST, %2012 7,009 3.78 11,673 1.78 2,059 1.39 20,741 2.42 6,561 3.01 -6,561 1.49 20,741 2.902013 7,009 3.78 9,872 16,880 5,300 2.62 -5,300 16,8802014 7,009 3.78 8,342 15,350 4,350 2.56 -4,350 15,3502015 5,309 4.00 5,600 10,908 3,100 2.83 -3,100 10,9082016 4,459 3.98 4,032 8,490 2,700 2.81 -2,700 8,4902017 4,459 3.98 4,032 8,490 2,300 2.77 -2,300 8,4902018 4,159 3.95 1,724 5,882 1,900 2.69 -1,900 5,8822019 4,039 3.94 1,724 5,762 900 2.11 -900 5,762TOTAL,SEK M2020 andlater 3,589 3.96 1,724 5,312 900 2.11 -900 5,312INTER-EST, %37 Asset management (Group)The Group strives to achieve good growth in profit, financialsustainability and financial capacity. These financial objectivesare set to provide a combination of a high return on equity, highgrowth capacity and financial stability.According to the owner’s financial targets for Akademiska Hus,the dividend should amount to 50 per cent of the profit after financialitems, excluding unrealised changes in value with a deductionfor current tax. When deciding on a dividend, account must be takenof the Group’s capital structure and capital requirements. Theother financial targets are that the equity ratio should be between30 and 40 per cent and that the return on equity should amount tothe average five-year government bond interest rate with a supplementof four percentage points, which for 2012 amounts to 5.1 percent. During 2012, the equity ratio was 46.1 per cent for the Groupand 17.1 per cent for the Parent Company. After the proposed dividend,the equity ratio will be 43.9 per cent for the Group and 13.4per cent for the Parent Company. The owner’s equity ratio targetwill be achieved even after the proposed dividend.Financing operations are described in Note 30 Loans and Note36 Financial risk management.The Group’s capital structure comprises an interest-bearing netloan liability and equity attributable to the Parent Company’sshareholders (share capital, other contributed capital, retainedearnings, including profit for the year).The Group’s capital is as follows:31-12-2012 31-12-2011loans from financing programmes (note 30) 22,468,839 22,686,693collateral received for derivative transactionsentered into (note 32)1,007,353 1,254,425Financial derivatives (note 22) -1,700,542 -2,573,136cash and cash equivalents (note 28) -3,246,614 -4,589,607INTEREST-BEARING NET LOAN LIABILITY 18,529,036 16,778,375EQUITY 28,426,713 26,520,64938 Pledged assetsGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Blocked bank funds 119,318 118,916 119,318 118,916current investments 151,052 — 151,052 —TOTAL 270,370 118,916 270,370 118,916Unsettled results from transactions as well as standardised computedsafety margins using stock exchange-cleared derivativeshave been secured through blocked bank funds.The Parent Company has entered into supplementary agreements(Credit Support Annexes) to the existing ISDA agreements withthe aim of handling exposure to counter-party risks in derivativecontracts. These agreements are mutual, follow internationalstandards and mean that the parties undertake to assure the valuedeficits in derivative contracts. The agreement grants the assuredparty right of disposal of the collateral received. As of December31, 2012, collateral of SEK 151,052 (0) had been furnished for theGroup’s liabilities.39 Contingent liabilitiesGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011contingent liability, FPG/PRI3,445 3,278 3,445 436Guarantee for regionalcompanies' pension— — — 167,753undertakingsTOTAL 3,445 3,278 3,445 168,18940 Interest paid and receivedGROUP PARENT COMPANY2012 2011 2012 2011Interest received 117,557 96,942 117,557 751,432Interest paid -674,680 -609,708 -674,680 -597,001TOTAL -557,123 -512,766 -557,123 154,431

AKAdEmISKA HuS 2012116 FINANCIAL REPORTS; NOTES41 Adjustments for items not includedin the cash flowGROUPPARENT COMPANY2012 2011 2012 2011depreciation 9,217 7,592 3,231 2,364change in value,properties155,811 -436,654 — —capital gain (-) / loss (+)on sale of other tangible, 27,899 3,564 — —non-current assetschange in value, financialinstruments262,958 -7,920 262,958 -7,920cash flow hedge 5,461 -97,845 5,461 -97,845change in accountingprinciple, financial— — — —instrumentschange in pensionprovisions and similar14,684 10,926 176,988 751undertakingsAdjustment for itemsattributable to merger— — -639,445 —of subsidiarieschange in other provisions — —miscellaneous -414 — 1 1TOTAL 475,616 -520,337 -190,806 -102,64942 Purchase sum in conjunction withinvestments, acquisitions and disposalsFor investments and acquisitions for the period, a total ofKSEK 2,917,327 (2,266,386) has been paid, of which KSEK 2,512,046was paid in cash and cash equivalents. For disposals for the period,a total of KSEK 119,054 (113,283) has been received, of whichKSEK 119,054 was received in cash and cash equivalents.43 Change in interest-bearing net loan liabilitiesGROUP PARENT COMPANY31-12-2012 31-12-2011 31-12-2012 31-12-2011Opening amount 16,494,888 15,434,943 -4,661,035 -5,046,543Increase (-) / decrease (+)in interest-bearing-26,373 -28,229 -1,292,380 -710,041receivablesIncrease (-) / decrease (+)in interest-bearing receivables— — — —following the mergerIncrease (-) / decrease (+)in current investments1,719,355 -3,783,919 1,719,355 -3,783,919Increase (-) / decrease (+)in current investments following— — — —the mergerIncrease (-) / decrease (+)in cash and cash-376,362 -113,540 -376,415 -113,638equivalentsIncrease (-) / decrease (+)in cash and cash equivalents— — — —following the mergerIncrease (+) / decrease (-)in interest-bearing163,405 4,985,633 -62,548 4,993,106liabilitiesIncrease (+) / decrease (-)in interest-bearing liabilities— — — —following the mergerChange in interest-bearingnet loan liability1,480,025 1,059,945 -11,988 385,508AMOUNT AT YEAR-END 17,974,913 16,494,888 -4,673,023 -4,661,03544 Subsequent eventsThere were no events of a material nature after the end of the reportingperiod.45 Transactions with related partiesGROUP PARENT COMPANY2012 2011 2012 2011IncOmEcompanies within theAkademiska Hus Group— — — 1,546,875TOTAL — — — 1,546,875cOSTScompanies within theAkademiska Hus Group— — — —TOTAL — — — —REcEIVABlEScompanies within theAkademiska Hus Group— -— — 21,338,073TOTAL — — — 21,338,073lIABIlITIEScompanies within theAkademiska Hus Group— — — 13,328TOTAL — — — 13,328In conjunction with intra-Group purchases and sales, the samepricing principles are applied as would have been the case in transactionswith an external party. Intra-Group property purchasesand sales take place subject to a fiscal residual value. Purchasesand sales of other current assets take place at the carrying value.There were no transactions with the President, Board of Directorsor senior executives, apart from salary and other remuneration,see Note 12.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; SIGNING OF THE ANNUAL REPORT117Signing of the Annual ReportThe Board of Directors and the President hereby certify that the Annual Report has been prepared in accordance with the AnnualAccounts Act and RFR 2 and provides a fair picture of the Company’s position and results and that the Administration Reportprovides a fair overview of the development of the Group’s operations, position and results, and also describes material risks anduncertainties facing the Company.The Board of Directors and the President hereby certify that the Consolidated Accounts have been prepared in accordance withInternational Financial Reporting Standards (IFRS), as adopted by the EU and provide a fair picture of the Group’s position andresults and that the Administration Report for the Group provides a fair overview of the development of the Group’s operations,position and results and also describes material risks and uncertainties facing the companies that form part of the Group.Gothenburg, march 14, 2013Eva-Britt GustafssonchairOlof EhrlénBoard memberPer GranathBoard memberleif ljungqvistBoard memberGunnar SvedbergBoard membermaj-charlotte WallinBoard memberPia SandvikBoard memberIngemar ZieglerBoard memberAnders larssonEmployee representativeThomas JennlingerEmployee representativeKerstin lindberg GöranssonPresidentOur audit report was submitted on march 14, 2013dElOITTE ABHans WarénAuthorised Public Accountant

AKAdEmISKA HuS 2012118 FINANCIAL REPORTS; AUDIT REPORTAudit ReportTo the annual meeting of the shareholders of Akademiska Hus AB (Publ)Company registration number 556459-9156Report on the annual accounts and consolidated accountsWe have audited the annual accounts and the consolidated accounts of Akademiska Hus AB for the financial year 2012, except for the CorporateGovernance Report on pages 70–79. The annual accounts and consolidated accounts of the company are included in the printedversion of this document on pages 1–3, 6–23, 27–69 and 80–135.Responsibilities of the Board of Directors and the President for the annual accounts and consolidated accountsThe Board of Directors and the President are responsible for the preparation and fair presentation of these annual accounts in accordancewith the Annual Accounts Act and consolidated accounts in accordance with International Financial Reporting Standards,as adopted by the EU, and the Annual Accounts Act, and for such internal control as the Board of Directors and the Presidentdetermine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement,whether due to fraud or error.Auditor’s responsibilityOur responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We conductedour audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the annual accounts and consolidated accounts are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accountsand consolidated accounts. The procedures selected depend on the auditor’s judgement, including the assessment of the risks ofmaterial misstatement of the annual accounts and consolidated accounts, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the annualaccounts and consolidated accounts in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors andthe President, as well as evaluating the overall presentation of the annual accounts and consolidated accounts.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.OpinionsIn our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in allmaterial respects, the financial position of the Parent Company as of 31 December 2012 and of its financial performance and itscash flows for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared inaccordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Group as of31 December 2012 and of their financial performance and cash flows for the year then ended in accordance with International FinancialReporting Standards, as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the Corporate GovernanceReport on pages 70–79. The Statutory Administration Report is consistent with the other parts of the annual accountsand consolidated accounts.We therefore recommend that the annual meeting of shareholders adopt the Income Statement and the Balance Sheet for the ParentCompany and the Group.REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSIn addition to our audit of the annual accounts and consolidated accounts, we have audited the proposed appropriations of theCompany’s profit or loss and the administration of the Board of Directors and the President of Akademiska Hus AB for the financialyear 2012. We have also conducted a statutory examination of the Corporate Governance Report.Responsibilities of the Board of Directors and the PresidentThe Board of Directors is responsible for the proposal for appropriations of the Company’s profit or loss, and the Board of Directorsand the President are responsible for administration under the Companies Act and that the Corporate Governance Report onpages 70–79 has been prepared in accordance with the Annual Accounts Act.

AKAdEmISKA HuS 2012FINANCIAL REPORTS; AUDIT REPORT119Auditor’s responsibilityOur responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the Company’s profit orloss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standardsin Sweden. As a basis for our opinion on the Board of Directors’ proposed appropriations of the Company’s profit or loss, weexamined the Board of Directors’ reasoned statement and a selection of supporting evidence in order to be able to assess whetherthe proposal is in accordance with the Companies Act.As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and the consolidatedaccounts, we examined significant decisions, actions taken and circumstances of the Company in order to determine whetherany member of the Board of Directors or the President is liable to the Company. We also examined whether any member of theBoard of Directors or the President has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Actor the Articles of Association.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Furthermore, we have read the corporate governance report and based on that reading and our knowledge of the company andthe group we believe that we have a sufficient basis for our opinions. This means that our statutory examination of the corporategovernance report is different and substantially less in scope than an audit conducted in accordance with International Standardson Auditing and generally accepted auditing standards in Sweden.OpinionsWe recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the StatutoryAdministration Report and that the members of the Board of Directors and the President be discharged from liability for thefinancial year. A Corporate Governance Report has been prepared and its statutory information is consistent with the other partsof the annual accounts and consolidated accounts.Gothenburg, March 14, 2013Signature on Swedish originalDELOITTE ABHans WarénAuthorised Public Accountant

120Contents – Property specificationSouthern Region, Lund (A) 121Southern Region, Lund (B) 122Southern Region, Kristianstad (C) 123Western Region, Gothenburg (A) and Chalmers (B) 124Western Region, Medicinareberget (C) and Karlstad (D) 125Eastern Region, Linköping and the Valla Campus (A) 126Eastern Region, Örebro (B) and Norrköping (C) 127Uppsala Region, Uppsala (A and B) 128Uppsala Region, Ultuna Campus (C) and Gävle (D) 129Stockholm Region, Stockholm (A) and the Solna Campus (B) 130Stockholm Region, Huddinge Campus (C) and Frescati (D) 131Stockholm Region, Royal Institute of Technology Campus (E) 132Stockholm Region, Kista (F) and the Konradsberg Campus (G) 133Northern Region, Umeå and Umeå Campus (A) 134Northern Region, Luleå (B) and Sundsvall (C) 135Definitions and addresses 136

AKAdEmISKA HuS 2012PROPERTY SPECIFICATION121Southern RegionLUND (A)PÅLSJÖE22TUNAOLSHÖGmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 Bredgatan 13 Sankt Peter 33 Bredgatan 13 1958 lund university lund 943 0 1,231 1,305 849 13,115A 2 Tapetserarverkstad Paradis 51 Paradisgatan 5 1916 lund university lund 236 0 257 1,089 35,028 1,243A 3 Pedagogen Paradis 51 Allhelgona Kyrkogatan 16 1918 lund university lund 3,638 0 4,291 1,179 0 44,815A 4 Teologen Paradis 51 Allhelgona Kyrkogata 8 1927 lund university lund 3,745 0 5,060 1,351 0 35,064A 5 Tillämpad Psykologi Paradis 51 Allhelgona Kyrkogata 14 1882 lund university lund 784 0 1,003 1,279 0 9,396A 6 Kirurgiska pav. Paradis 51 Sandgatan 3 1867 lund university lund 3,429 0 4,497 1,311 0 45,152A 7 Sociologen Paradis 51 Paradisgatan 5 1850 lund university lund 3,401 0 3,779 1,111 0 40,013A 8 Hud Kliniken Paradis 51 Paradisgatan 3 1824 lund university lund 1,053 0 1,828 1,736 0 19,051A 9 Psykologen Paradis 51 Allhelgona Kyrkogata 14 1867 lund university lund 2,780 0 3,767 1,355 0 38,403A 10 Beteendevetenskapliga Paradis 51 Allhelgona Kyrkogata 14 1899 lund university lund 1,633 0 2,357 1,443 0 22,989biblioteketA 11 Byrålogen Paradis 51 Paradisgatan 5 1983 lund university lund 3,765 0 5,200 1,381 0 57,376A 12 Eden Paradis 51 Allhelgona Kyrkogata 14 1984 lund university lund 4,678 0 7,002 1,497 0 62,712A 13 Socialhögskolan Paradis 47 Bredgatan 26 1889 lund university lund 1,383 0 2,108 1,524 3,157 20,266A 14 uB Absalon 5 Helgonabacken 1907 lund university lund 14,007 0 11,846 846 29,728 107,270A 15 Humanisten Absalon 5 Helgonabacken 14 1959 lund university lund 16,431 0 26,248 1,597 0 290,551A 16 Biskopsgatan 7 Hyphoff 5 Biskopsgatan 5 1893 lund university lund 1,358 0 2,050 1,510 19,751 19,016A 17 Konst och musik Hyphoff 5 Biskopsgatan 5 1965 lund university lund 1,087 0 1,588 1,461 0 14,441A 18 Kulturanatomen Hyphoff 5 Biskopsgatan 7 1893 lund university lund 1,840 0 2,726 1,482 0 27,089A 19 Vaktmästarhus Hyphoff 5 Pålsjövägen 1 1893 lund university lund 252 0 145 575 0 1,030A 20 Finng 10 Hyphoff 5 Finngatan 10 1891 lund university lund 541 0 376 695 0 3,430A 20 Finngatan 12 Hyphoff 5 Finngatan 12 1900 Telavox AB lund 297 0 421 1,418 0 4,710A 20 Finngatan 14 Hyphoff 5 Finngatan 14 1907 Borstahusen AB lund 380 0 559 1,471 0 6,087A 20 Finngatan 16 Hyphoff 5 Finngatan 16 1905 lund university lund 429 0 600 1,399 0 6,110A 21 Geocentrum 1 Saxo 3 Sölvegatan 10 1924 lund university lund 3,328 0 135 41 4,943 -16,483A 22 Geocentrum 2 Sölve 1 Helgonavägen 5 1936 lund university lund 8,184 0 20,669 2,526 46,999 233,978A 23 Gerdagatan 9 Sölve 1 Gerdagatan 9 1936 Institute for language lund 552 0 645 1,168 0 6,281and FolkloreA 23 Gerdagatan 11 Sölve 1 Gerdagatan 11 1952 lund university lund 402 0 332 826 0 2,472A 23 Gerdagatan 13 Sölve 1 Gerdagatan 13 1952 lund university lund 405 0 463 1,143 0 4,371A 24 Fysik Sölve 1 Professorsgatan 1 1962 lund university lund 23,591 958 38,451 1,630 0 314,342A 25 Innovationscentrum Sölve 1 Sölvegatan 16 1963 lund university lund 2,522 0 3,763 1,492 0 41,539A 26 Zoofysiologen Eskil 21 Helgonavägen 3 1962 lund university lund 8,403 0 6,997 833 43,396 44,442A 27 Bmc Fysiologen Eskil 21 Sölvegatan 19 1955 lund university lund 8,914 0 20,677 2,320 0 166,711A 28 Bmc, Hus A -R Eskil 21 Sölvegatan 17 1995 lund university lund 33,823 0 100,226 2,963 0 830,463A 29 Astronomi Eskil 21 Sölvegatan 27 2001 lund university lund 4,560 0 9,345 2,049 0 117,839A 30 Genetik Helgona 6:16 Sölvegatan 29 1949 lund university lund 5,469 755 4,600 841 373,522 33,753A 31 Biologicentrum Helgona 6:16 Sölvegatan 35 1962 lund university lund 9,802 0 32,444 3,310 0 378,111

122AKADEMISKA HUS 2012PROPERTY SPECIFICATIONSouthern RegionLUND (B)PÅLSJÖLund E22 UniversityTUNAOLSHÖGmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 32 Ekologi Helgona 6:16 Sölvegatan 37 1994 lund university lund 11,943 0 22,621 1,894 0 202,767B 33 Tornavägen 13 Helgona 6:16 Tornavägen 13 1952 Red Apple Apartments lund 1,030 0 763 741 0 7,266B 34 matematik Helgona 6:16 Sölvegatan 18 1964 lund university lund 10,387 0 11,845 1,140 0 114,738B 35 Annexet Helgona 6:16 Sölvegatan 18 1964 lund university lund 3,661 0 2,745 750 0 37,684B 36 maskinteknik Helgona 6:16 Ole Römers v 1 1966 lund university lund 27,527 1,846 27,715 1,007 0 198,191B 37 Elektroteknik Helgona 6:16 Ole Römers v 3 1968 lund university lund 19,015 0 25,404 1,336 0 231,278B 38 Väg & vatten Helgona 6:16 John Ericssons v 1 1967 lund university lund 18,612 494 17,807 957 0 100,085B 39 Arkitektur Helgona 6:16 Sölvegatan 24 1965 lund university lund 10,004 0 16,273 1,627 0 163,460B 40 Kemicentrum Helgona 6:16 Getingevägen 60 1969 lund university lund 51,352 11,564 90,738 1,767 0 744,994B 41 designcentrum Helgona 6:16 Sölvegatan 26 2002 lund university lund 9,954 0 21,835 2,194 0 270,297B 42 lth Info och studie Helgona 6:16 John Ericssons v 4 1977 lund university lund 4,503 0 6,897 1,532 0 71,305B 43 Kårhuset Helgona 6:16 John Ericssons väg 3 1994 lund university lund 5,565 0 7,457 1,340 0 73,645B 44 KF Sigma Helgona 6:16 Sölvegatan 22 F 1986 lund university lund 1,681 1,315 782 0 8,652B 45 AH Kontorsbyggnad Studentkåren 4 Ole Römers väg 2 1902 Akademiska Hus South lund 2,521 0 2,804 1,112 25,267 17,364B 46 Tornavägen 11 Helgona 6:16 Tornavägen 11 1959 lund university lund 1,507 1,000 514 341 0 12,734maria magle maria magle 6 magle St Kyrkog 12 1861 lund university lund 2,146 0 2,983 1,390 2,473 11,261utb. res. lth-området Helgona 6:16 — — — lund 0 0 0 0 0 51,613utb. res. Kuvösen Studentkåren 4 — — — lund 0 0 0 0 0 31,088Tandvårdshögskolan Klerken 4 carl Gustavs väg 34 1948 malmö university malmö 15,459 0 19,606 1,268 7,643 208,801Slottet Alnarp 1:60 Slottsvägen 5 1862 Swedish university of Alnarp 3,314 0 4,959 1,496 933,117 27,521Agricultural SciencesAgricum Alnarp 1:60 Slottsvägen 2 1950 Swedish university of Alnarp 4,360 35 3,976 912 0 25,975Agricultural SciencesAnimalienborg Alnarp 1:60 Sundsvägen 3 1905 Swedish university of Alnarp 3,438 0 3,403 990 0 20,545Agricultural SciencesHovbeslagskolan Alnarp 1:60 Smedjevägen 2 1877 Swedish university of Alnarp 2,867 30 1,685 588 0 6,898Agricultural SciencesRestaurang Alnarp 1:60 Sundsvägen 9 1876 Swedish university of Alnarp 2,536 0 1,517 598 0 1,717Agricultural SciencesSödra elev Alnarp 1:60 Elevenborgsvägen 4 1951 Swedish Board of Alnarp 1,728 0 975 564 0 3,491AgricultureKärnhuset Alnarp 1:60 Smedjevägen 3 1971 Genetic Resource centre Alnarp 2,530 19 2,089 826 0 7,939Ekonomilokal Alnarp 1:60 Växthusvägen 14 1945 Swedish university of Alnarp 2,160 64 381 176 0 -2,184Agricultural SciencesHorticum Alnarp 1:60 Sundsvägen 10 1974 Swedish university of Alnarp 5,962 0 10,356 1,737 0 60,399Agricultural SciencesStora logen Alnarp 1:60 F meldahls väg 3 1890 Swedish university of Alnarp 2,762 1,287 476 172 0 -4,295Agricultural Sciencesmejeriet Alnarp 1:60 Kungsgårdsvägen 8 1936 Akademiska Hus South Alnarp 3,789 786 1,683 444 0 823Bostad Alnarp 1:60 mejeristigen 1 1936 Private individual Alnarp 1,666 0 686 412 0 722

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 123Southern RegionKRISTIANSTAD (C)NÄSBYFÄLADENLYCKANSHÖJDmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEElevenborg Alnarp 1:60 Elevenborgsvägen 2 1910 Swedish university of Alnarp 3,605 200 1,724 478 0 2,519Agricultural SciencesVäxtskyddscentrum Alnarp 1:60 Sundsvägen 16 1980 Swedish university of Alnarp 10,428 174 12,445 1,193 0 46,616Agricultural Sciencesutb. res. Alnarp Alnarp 1:60 — — — Alnarp 0 0 0 0 0 1,430Gamlegård Alnarp 1:60 Gamlegård 4 1750 Swedish university of Alnarp 5,029 530 2,413 480 0 7,259Agricultural SciencesAlnarpsgården Alnarp 1:60 Sundsvägen 6 1869 Swedish university of Alnarp 7,671 0 5,317 693 0 12,255Agricultural SciencesSmp Alnarp 1:60 Sundsvägen 8 A 1957 SmP AB Alnarp 2,801 0 1,644 587 0 7,315Kalmarsundslab Eldaren 1 landgången 4 1996 linné university Kalmar 2,813 0 5,174 1,839 19,930 41,909Sjöfartshögskolan Eldaren 1 landgången 4 2001 linné university Kalmar 9,088 0 16,743 1,842 0 149,534c 57 Admibyggnad näsby 34:24 Elmetorpsvägen 1920 Kristianstad university K-stad 1,651 0 2,024 1,226 80,140 11,158c 58 Administrationen näsby 34:24 Elmetorpsvägen 1923 Kristianstad university K-stad 1,108 0 1,661 1,499 0 12,722c 59 Bibliotek näsby 34:24 Elmetorpsvägen 1920 Kristianstad university K-stad 5,371 0 7,100 1,322 0 50,042c 60 Baggium Bygg/Fordon näsby 34:24 Elmetorpsvägen 1920 Praktiska Sverige AB K-stad 545 0 899 1,650 0 6,906c 61 Kontor näsby 34:24 Elmetorpsvägen 1922 Pysslingen Förskolor K-stad 3,062 0 3,379 1,104 0 23,465och Skolor ABc 62 Pedagogen näsby 34:24 Elmetorpsvägen 1922 Kristianstad university K-stad 7,249 0 8,638 1,192 0 60,596c 63 Hälsohuset näsby 34:24 Elmetorpsvägen 1920 Kristianstad university K-stad 7,440 0 9,124 1,226 0 61,483c 64 matte/natur näsby 34:24 Elmetorpsvägen 1922 Kristianstad university K-stad 3,822 0 4,705 1,231 0 30,823c 65 Teknik näsby 34:24 Elmetorpsvägen 1921 Kristianstad university K-stad 3,292 0 4,168 1,266 0 30,845Properties underconstruction308,815TOTAL 486,999 19,743 726,352 1,491 1,625,943 6,619,613Rent reductions and vacant space -11,772Revenue, non-recurring rent payments 37,667Revenue, properties sold 14,209Rental revenue, net 766,456

124AKADEMISKA HUS 2012PROPERTY SPECIFICATIONWestern RegionGOTHENBURG (A)Western RegionCHALMERS (B)JOHANNEBERGGÅRDAHAGALORENSBERGOLIVEDALANNEDALLANDALAJOHANNEBERGLISEBERGSNÖJESPARKE20E6BCmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 universitetsbiblioteket lorensberg 21:1 Renströmsgatan 4 1953 Gothenburg university Göteborg 13,337 0 16,906 1,268 0 175,388A 1 Humanisten lorensberg 21:1 lundgrensgatan 7 1966 Gothenburg university Göteborg 15,906 0 21,634 1,360 0 245,516A 2 Arkeologen lorensberg 21:1 Olof Wijksgatan 6 1947 Gothenburg university Göteborg 3,144 0 4,544 1,445 35,248 51,330A 3 Artisten lorensberg 24:3 Fågelsången 1 1935 Gothenburg university Göteborg 14,628 0 26,035 1,780 9,605 290,662A 4 Viktoriagatan 13 Vasastaden 12:19 Viktoriagatan 13 1952 Gothenburg university Göteborg 4,150 0 5,861 1,412 3,827 68,466A 5 Handelshögskolan Haga 22:1 Vasagatan 1 1952 Gothenburg university Göteborg 26,623 0 40,741 1,530 12,605 470,453A 6 Haga Haga 21:19 Sprängkullsgatan 19 1994 Gothenburg university Göteborg 21,622 0 34,779 1,608 7,430 366,394A 7 KK2 Annedal 20:2 Konstepidiminsväg 2 1924 Gothenburg university Göteborg 5,514 0 8,370 1,518 10,428 92,814A 8 Psykologen Annedal 21:11 Haraldsgatan 1 1995 Gothenburg university Göteborg 6,169 0 9,380 1,520 3,125 101,901A 9 Botanik Änggården 34:2 carl Skottbergs g 22 B 1970 Gothenburg university Göteborg 9,816 140 15,710 1,600 11,280 127,100B 10 Fysik Origo Johanneberg 31:9 Kemigården 1 1926 chalmersfastigheter AB Göteborg 11,762 0 17,272 1,468 182,800 142,085B 10 It-gymnasiet villan Johanneberg 31:9 Origovägen 2 1948 IT Gymnasiet Sverige AB Göteborg 289 0 567 1,962 0 6,251B 10 Fysik Soliden Johanneberg 31:9 Origovägen 6 B 1945 chalmersfastigheter AB Göteborg 2,422 0 3,568 1,473 0 33,560B 10 It-gymnasiet Johanneberg 31:9 Origovägen 4 1926 IT Gymnasiet Sverige AB Göteborg 1,855 0 2,589 1,396 0 26,277B 11 matematiska vetenskaperJohanneberg 31:9 chalmers Tvärgata 3 1945 chalmersfastigheter AB Göteborg 6,737 0 14,039 2,084 0 147,132B 12 chalmers bibliotek Johanneberg 31:9 chalmers Tvärgata 1 1957 chalmersfastigheter AB Göteborg 5,925 0 7,429 1,254 0 67,553B 13 Hörsalar HA Johanneberg 31:9 Hörsalsvägen 4 1962 chalmersfastigheter AB Göteborg 1,141 0 1,539 1,349 0 15,981B 14 maskinteknik Johanneberg 31:9 Hörsalsvägen 7 1968 chalmersfastigheter AB Göteborg 25,280 0 33,651 1,331 0 213,678B 14 Kraftcentral Johanneberg 31:9 chalmers tvärg. 6 1947 — Göteborg 88 0 47 530 0 0B 14 lokalkontor AH Johanneberg 31:9 chalmers tvärg. 6 1969 Akademiska Hus West Göteborg 1,045 0 959 918 0 6,232B 15 Hörsalar HB Johanneberg 31:9 Hörsalsvägen 10 1962 chalmersfastigheter AB Göteborg 2,172 0 3,791 1,745 0 36,352B 16 Hörsalar Hc Johanneberg 31:9 Hörsalsvägen 14 1962 chalmersfastigheter AB Göteborg 1,441 0 1,919 1,332 0 19,485B 17 Elkraftteknik Johanneberg 31:9 Hörsalsvägen 11 1955 chalmersfastigheter AB Göteborg 5,008 0 6,317 1,261 0 53,826B 17 Idélära Johanneberg 31:9 Rännvägen 8 1959 chalmersfastigheter AB Göteborg 752 0 643 855 0 4,884B 17 Edit Johanneberg 31:9 maskingränd 2 1963 chalmersfastigheter AB Göteborg 19,603 0 32,238 1,645 0 328,456B 17 Förråd och ställverk Johanneberg 31:9 Elektrovägen — chalmersfastigheter AB Göteborg 105 0 15 141 0 138B 18 Väg och vatten 1 Johanneberg 31:9 Sven Hultins gata 6 1966 chalmersfastigheter AB Göteborg 6,592 0 8,091 1,227 0 65,698B 18 Arkitektur Johanneberg 31:9 Sven Hultins gata 6 1968 chalmersfastigheter AB Göteborg 14,080 0 14,904 1,059 0 142,546B 18 Väg och vatten 2 Johanneberg 31:9 Sven Hultins gata 8 1969 chalmersfastigheter AB Göteborg 18,151 0 18,746 1,033 0 145,620B 19 mattecentrum Krokslätt 109:20, Eklandagatan 86 1993 city of Gothenburg Göteborg 7,704 5,666 9,131 1,185 7,241 73,555110:3B 20 centrala admin. Johanneberg 31:9 chalmersplatsen 4 1962 chalmersfastigheter AB Göteborg 3,353 0 4,251 1,268 0 43,384Gibraltar herrgård Johanneberg 31:9 Gibraltargatan 17 1974 Hummingbird AB Göteborg 334 0 654 1,959 0 7,346utb.res. chalmers Johanneberg 31:9 — — — Göteborg — — 0 — — 68,932c 21 lyktan Wallenbergssalen Änggården 718:138 medicinaregatan 20 1971 Gothenburg university Göteborg 4,790 0 8,372 1,748 0 73,739c 22 Zoologi Änggården 718:138 medicinaregatan 18 1971 Gothenburg university Göteborg 7,485 790 10,028 1,340 0 66,815c 23 miljömedicin Änggården 718:138 medicinaregatan 16 1970 Gothenburg university Göteborg 4,458 0 6,709 1,505 0 54,077

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 125Western RegionMEDICINAREBERGET (C)Western RegionKARLSTAD (D)NORRAKROPPKÄRRKRONO-PARKENE18SÖDRAKROPPKÄRRmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEc 24 lokalkontor AH Änggården 718:138 medicinaregatan 14 1981 Akademiska Hus West Göteborg 351 0 410 1,170 0 3,621c 25 medicinarelängan Änggården 718:138 medicinaregatan 3–11 1968 Gothenburg university Göteborg 28,813 0 50,512 1,753 0 412,921c 25 Experimentell Biomedicin Änggården 718:138 medicinaregatan 15 1998 Gothenburg university Göteborg 9,081 0 27,954 3,078 0 139,127c 25 Hasselbladslaboratoriet Änggården 718:138 medicinaregatan 5 c 1997 Gothenburg university Göteborg 1,240 0 1,563 1,261 0 12,261c 25 läkemedelscentrum Änggården 718:138 medicinaregatan 13 A–c 2008 Gothenburg university Göteborg 2,759 0 9,979 3,617 0 93,474c 25 Academicum Änggården 718:138 medicinaregatan 3 2004 Gothenburg university Göteborg 1,765 0 5,165 2,926 0 46,776c 26 lundbergslaboratoriet Änggården 718:138 medicinaregatan 9 c 1993 Gothenburg university Göteborg 6,047 0 18,158 3,003 0 158,186c 27 Änggården Änggården 718:138 medicinaregatan 8 1910, Sahlgrenska Science Göteborg 5,962 334 7,482 1,255 0 58,2921962 Parkc 28 Biomedicinska biblioteket Änggården 718:138 medicinaregatan 4 1959 Gothenburg university Göteborg 3,160 0 3,333 1,055 194,253 26,963Gångbro Änggården 718:138 medicinaregatan 4 B 2003 Gothenburg university Göteborg 305 0 1,688 5,534 0 24,368utb.res. medicinarberget Änggården 718:138 — — — Göteborg — — 0 — — 24,970P-däck, medicinareberget Änggården 718:138 — — Gothenburg university Göteborg 5,666 0 0 0 0 6,327d 29 universitetsbiblioteket universitetet 1 universitetsgatan 2 2002 Karlstad university Karlstad 10,429 0 18,635 1,787 0 160,576d 30 Hus 11–12 universitetet 1 universitetsgatan 6 2000 Karlstad university Karlstad 12,042 0 23,167 1,924 0 156,863d 31 Hus 1–9 universitetet 1 universitetsgatan 6 1993 Karlstad university Karlstad 44,818 0 56,321 1,257 139,892 457,696d 32 Hus Vänern universitetet 1 Sommargatan 2008 Karlstad university Karlstad 12,803 0 27,301 2,132 0 268,352Studenternas Hus universitetet 1 Sommargatan 110 2003 Karlstad university Karlstad 2,876 238 4,400 1,530 0 26,244Tjärnö Korsnäs 1:16 Tjärnö — Gothenburg university Tjärnö 5,985 0 10,595 1,770 24,936 63,223Kristineberg Skaftö-Fi 1:500 Fiskebäckskil 1994 Gothenburg university Kristineberg2,731 0 5,493 2,011 1,932 26,252Forskningsstation Skaftö-Fi 1:194,1:224Kristineberg,Fiskebäckskil1905 Gothenburg university Kristineberg2,445 0 2,037 833 0 15,953Högskolan Skövde Göta 1 Högskolevägen 1 — Skövde university Skövde 8,383 1,962 8,590 1,025 34,015 46,630Hus G Göta 1 Högskolevägen 1999 Skövde university Skövde 11,453 0 18,931 1,653 0 148,968Balder Balder 7 Allégatan 1 1982 Borås university Borås 32,226 0 36,017 1,118 7,454 310,134Sandgärdet Sandgärdet 6 m.fl. Järnvägsgatan 5 2001 Borås university Borås 13,456 0 25,956 1,929 12,256 267,039utb.res. Sandgärdet Sandgärdet 6 m.fl. — — — Borås — — — — — 3,912Properties underconstruction166,152TOTAL 498,277 9,130 755,073 1,515 698,327 6,974,892Rent reductions and vacant space -13,440Revenue, non-recurring rent payments 11,334Rental revenue, net 752,966

126AKADEMISKA HUS 2012PROPERTY SPECIFICATIONEastern RegionLINKÖPINGEastern RegionCAMPUS VALLA (A)ÖSTRAVALLAVASASTADENGOTT-FRIDSBERGINNERSTADENTANNEFORSÖSTRAVALLARAMSHÄLLAVÄSTRAVALLAEKKÄLLANVÄSTRAVALLABERGAmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 A-huset Intellektet 1 campus Valla 1970 linköping university linköping 30,865 0 46,301 1,500 0 377,030A 2 B-huset Intellektet 1 campus Valla 1972 linköping university linköping 35,389 0 47,936 1,355 0 391,001A 3 c-huset Intellektet 1 campus Valla 1972 linköping university linköping 11,188 0 11,260 1,006 0 86,376A 4 d-huset Intellektet 1 campus Valla 1980 linköping university linköping 12,947 0 15,491 1,197 0 139,638A 5 Temahuset Intellektet 1 campus Valla 1987 linköping university linköping 5,882 0 7,123 1,211 0 63,514A 6 E-huset Intellektet 1 campus Valla 1985 linköping university linköping 4,229 0 4,812 1,138 0 39,468A 7 Kårallen Intellektet 1 campus Valla 1987 linköping university linköping 5,647 0 3,747 664 0 18,683A 8 Akademiska Hus, adm Intellektet 1 campus Valla 1987 Akademiska Hus East linköping 1,098 0 1,043 1,074 0 8,391A 9 nova Intellektet 1 campus Valla 1975 Alcontrol AB linköping 6,172 0 8,142 1,319 0 53,324A 10 Vallfarten Intellektet 1 campus Valla 1975 linköping university linköping 1,275 0 1,760 1,380 0 9,188A 11 Terra Intellektet 1 campus Valla 1975 VTI linköping 21,941 1,899 22,896 1,043 0 185,928A 12 Provhall Intellektet 1 campus Valla 1973 Peab d&u mellansverige AB linköping 385 0 190 493 0 659A 13 Förråd Intellektet 1 campus Valla 1975 linköping university linköping 704 0 314 446 0 0A 14 Provvägshall/VTI Intellektet 1 campus Valla 1973 VTI linköping 1,287 0 670 520 0 2,222A 15 Origo Intellektet 1 campus Valla 1992 linköping university linköping 4,065 0 5,055 1,243 0 40,051A 16 Fysikhuset Intellektet 1 campus Valla 1995 linköping university linköping 16,918 0 31,052 1,835 0 276,290A 17 Hus Ett Intellektet 1 campus Valla 1987 linköping university linköping 637 0 526 826 0 4,368A 18 Galaxen Intellektet 1 campus Valla 1978 FOI linköping 31,189 1,050 35,828 1,149 0 286,755A 19 nSc Intellektet 1 campus Valla 1978 linköping university linköping 948 0 10,691 11,278 0 34,647A 20 mjärdevi Västergård Intellektet 1 campus Valla 1780 linköping university linköping 113 0 90 797 0 365A 21 Zenit Intellektet 1 campus Valla 1998 linköping university linköping 1,957 0 2,427 1,240 0 19,975A 22 I-huset Intellektet 1 campus Valla 1990 linköping university linköping 2,761 0 2,688 973 0 25,837A 23 I-huset 3 Intellektet 1 campus Valla 1996 linköping university linköping 1,373 0 1,437 1,046 0 15,801A 24 Key Intellektet 1 campus Valla 2000 linköping university linköping 11,139 0 19,294 1,732 0 143,321A 25 Idrottshall Intellektet 1 campus Valla 2007 linköping municip Authority linköping 5,553 0 4,838 871 0 48,402A 26 Friidrottsarena Intellektet 1 campus Valla 2011 linköping municip Authority linköping 581 0 6,910 11,894 0 87,166A 27 l-huset Intellektet 1 campus Valla 2011 linköping university linköping 377 0 1,364 3,617 0 12,601A 28 Ångströmhuset Intellektet 1 campus Valla 2011 linköping university linköping 237 0 3,609 15,227 0 33,322utb. res. Intellektet 1 Intellektet 1 campus Valla — — linköping 0 0 0 0 0 125,779mark, Intellektet 1 Intellektet 1 campus Valla — — linköping 312 0 294 0 1,032,112 0B 29 Ioh Gymnastikhuset universitetet 1 Fakultetsgatan 1 1969 Örebro university Örebro 5,157 0 5,596 1,085 0 44,340B 29 Ioh Idrottshallen universitetet 1 Fakultetsgatan 1 1970 Örebro university Örebro 2,410 0 2,049 850 0 14,561

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 127Eastern RegionÖREBRO (B)Eastern RegionNORRKÖPING (C)AssiDomänNÄSBYNORDAN TILLALMBYSÖRBYGAMLASTADENTYBBLEBERGETSTRÖMBACKENSÖRBYÄNGENmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEB 29 Idrottsplaner universitetet 1 Fakultetsgatan 1 — Örebro university Örebro 0 0 1,132 0 0 0B 30 långhuset universitetet 1 Fakultetsgatan 1 1975 Örebro university Örebro 18,526 0 23,542 1,271 0 191,298B 31 Östra mark mangårdsbyggnaduniversitetet 1 Fakultetsgatan 1 1984 Örebro university Örebro 577 0 523 907 0 4,418B 31 Östra mark västra universitetet 1 Fakultetsgatan 1 1996 Örebro university Örebro 320 0 353 1,102 0 3,359flygelnB 32 Teknikhuset universitetet 1 Fakultetsgatan 1 1992 Örebro university Örebro 13,400 0 18,731 1,398 0 155,032B 33 Prismahuset universitetet 1 Fakultetsgatan 1 1995 Örebro university Örebro 14,522 0 19,432 1,338 0 151,860B 33 Forum universitetet 1 Fakultetsgatan 1 2001 Örebro university Örebro 8,513 0 11,139 1,309 0 102,962B 34 musikhögskola universitetet 1 Fakultetsgatan 1 2004 Örebro university Örebro 9,237 0 18,906 2,047 0 169,782B 34 Bilbergska universitetet 1 Fakultetsgatan 1 2008 Örebro university Örebro 5,413 0 17,117 3,162 0 140,563B 35 Entrehuset universitetet 1 Fakultetsgatan 1 1998 Örebro university Örebro 4,713 0 6,976 1,480 0 63,030B 35 Kårhuset universitetet 1 Fakultetsgatan 1 1990 Örebro university Örebro 1,360 0 1,371 1,008 0 8,372B 36 Bibliotek universitetet 1 Fakultetsgatan 1 1996 Örebro university Örebro 6,798 0 9,144 1,345 0 84,188Röda paviljongen universitetet 1 Fakultetsgatan 1 — Örebro university Örebro 283 0 140 494 0 818mark, universitetet 1 universitetet 1 Fakultetsgatan 1 — — Örebro 0 0 78 0 244,185 0utb. res. universitetet 1 universitetet 1 Fakultetsgatan 1 — — Örebro 0 0 0 0 0 17,301c 37 Kåkenhus Kåkenhus 11 Bredgatan 33 1830, linköping university norrköping 19,266 0 41,569 2,158 7,167 333,3562008c 38 Täppan Täppan 23 Bredgatan 34 1999 linköping university norrköping 16,269 0 31,235 1,920 1,429 297,278c 39 Kopparhammaren KopparhammarenKungsgatan 52 1891, linköping university norrköping 2,539 0 8,536 3,362 946 74,14862010måltidens Hus Grythyttan 6:419 Sörälgsvägen 4 1993 Örebro university Grythyttan 3,117 0 4,557 1,462 15,651 19,881Kärnhuset Grythyttan 6:419 Sörälgsvägen 1 1993 Örebro university Grythyttan 1,679 0 1,984 1,182 14,710 12,440Kärnhuset nSc, Tmc,1,903 1,160 621 27,984KmcProperties underconstruction110,389TOTAL 353,171 2,949 523,057 1,528 1,316,200 4,557,462Rent reductions and vacant space -4,702non-recurring rental revenue 16,576Rental revenue, net 534,931

128AKADEMISKA HUS 2012PROPERTY SPECIFICATIONUppsla RegionUPPSALA (A)Uppsla RegionUPPSALA (B)FJÄRDINGENKUNGS-GÄRDETFJÄRDINGENKUNGS-ÄNGENBKÅBOULLER-ÅKERNORBYKÅBOST. DJUR-GÅRDENVALSÄTRAULTUNACmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 Ekonomikum luthagen 62:7 Kyrkogårdsgatan 10 1975 uppsala university uppsala 21,838 0 31,405 1,438 43,618 289,653A 2 Engelska parken 1 Kåbo 14:3 Thunbergsvägen 3 A–B 1859 uppsala university uppsala 2,719 0 3,904 1,436 34,191 37,188A 2 Engelska parken 2 Kåbo 14:3 Thunbergsvägen 3 E 1904 uppsala university uppsala 30,453 0 40,759 1,338 0 382,367A 2 Engelska parken 3 Kåbo 14:3 Thunbergsvägen 3 d 1954 uppsala university uppsala 3,878 0 6,442 1,661 0 56,683A 2 Engelska parken 4 Kåbo 14:3 Thunbergsvägen 5 A 1986 uppsala university uppsala 2,739 0 4,816 1,758 0 28,278A 2 Engelska parken 5 Kåbo 14:3 Thunbergsvägen 5 A 1947 uppsala university uppsala 1,103 0 4,144 3,757 0 16,809B 3 Blåsenhus 1 Kåbo 5:1 von Kraemers Allé 1 2009 uppsala university uppsala 20,736 0 48,699 2,349 137,808 652,901B 4 Idrottshuset Kåbo 5:1 von Kraemers Allé 5 2009 uppsala university uppsala 2,986 0 6,588 2,206 0 84,979B 5 Stora lugnet Kåbo 5:4 dag Hammarskjölds v 11 A–B 1955 Swe Transport Admin uppsala 2,132 320 3,175 1,489 4,090 25,950B 5 lugnet Kåbo 5:1 von Kraemers Allé 8 1750 uppsala municipal uppsala 358 0 314 877 0 1,099AuthorityB 6 EBc 1, Zoologen Kåbo 34:12 Villavägen 9 1916 uppsala university uppsala 7,576 0 8,933 1,179 53,794 81,515B 6 EBc 2 Kåbo 34:12 norbyvägen 14 1999 uppsala university uppsala 2,407 0 4,112 1,708 0 41,996B 6 EBc 4 lab Kåbo 34:12 norbyvägen 18 A 1962 uppsala university uppsala 14,489 0 24,066 1,661 0 216,075B 6 EBc 5, Paleontologen Kåbo 34:12 norbyvägen 22 1933 uppsala university uppsala 2,738 0 1,955 714 0 13,335B 6 EBc 6, limnologen Kåbo 34:12 norbyvägen 18 B 1963 uppsala 2,484 2,484 1,017 409 0 2,800B 6 EBc 7 Kåbo 34:12 norbyvägen 18 E 2009 uppsala university uppsala 2,405 0 10,648 4,427 0 119,249B 7 Västra lugnet Kåbo 5:1 Villavägen 1912 uppsala 1,733 1,733 347 200 7,000B 7 Geocentrum Kåbo 5:1 Villavägen 18 1979 uppsala university uppsala 18,896 0 25,736 1,362 0 258,626B 8 Kunskapsgymnasiet Kåbo 5:1 von Kraemers Allé 24 1967 Kunskapsskolan uppsala 2,881 0 7,558 2,623 0 91,830B 8 Skandionkliniken Kåbo 5:9 — — — uppsala 0 0 0 0 6,115 94,095B 9 Arkivcentrum Kåbo 5:1 von Kraemers Allé 19 1953 national Archives. uppsala 13,512 0 14,648 1,084 0 151,520uppsalaB 10 Kontor Akademiska Hus Kåbo 5:1 Artillerigatan 7 2003 Akademiska Hus uppsala uppsala 2,237 0 4,846 2,166 8,300 48,463B 11 magistern Kåbo 1:10 dag Hammarskjölds v 31 1943 Kunskapsskolan uppsala 4,382 552 9,210 2,102 0 115,355B 12 Biomedicinskt centrum Kåbo 1:10 Husargatan 3 1997 uppsala university uppsala 78,616 1,396 169,041 2,150 98,732 1,615,934A 13 Rosendalsgymnasiet Kåbo 1:20 Husargatan 8 1976 uppsala municipal uppsala 9,061 0 14,646 1,616 19,172 167,304AuthorityA 14 Fyrkanten Kåbo 1:20 leo Fenders väg — — uppsala 1,103 1,103 0 0 2,970 0A 15 Ångströmlab Kronåsen 7:1 lägerhyddsvägen 1 1994 uppsala university uppsala 49,785 0 99,714 2,003 82,442 1,089,166A 16 ITc 1 Kronåsen 1:15 lägerhyddsvägen 2 1909 uppsala university uppsala 21,433 0 33,410 1,559 68,695 336,069A 16 ITc 2 Kronåsen 1:15 lägerhyddsvägen 2 1916 Svensk markservice AB uppsala 3,188 343 3,158 991 0 12,410A 16 ITc 3 Kronåsen 1:15 lägerhyddsvägen 2 1903 Science Students union uppsala 2,545 1,810 631 248 0 0A 16 ITc 4 Kronåsen 7:1 lägerhyddsvägen 3 1879 county council Service uppsala 2,076 308 2,777 1,338 0 22,188B utb. res. Blåsenhus Kåbo 5:1 — — — uppsala 0 0 0 0 0 68,870B 6 utb. res. lagerträdet Kåbo 34:12 — — — uppsala 0 0 0 0 0 2,029A 2 utb. res. Engelska parken Kåbo 14:3 — — — uppsala 0 0 0 0 0 654A utb. res. Rosendal Kåbo 1:20 — — — uppsala 0 0 0 0 0 160,820B Kv Blåsenhus Kåbo 5:1 norbyvägen 6 — — uppsala 0 0 0 0 0 49,000A 16 utb. res. ITc Kronåsen 1:15 — — — uppsala 0 0 0 0 0 3,826B 11 utb. res. magistern Kåbo 1:10 — — — uppsala 0 0 0 0 0 47,485

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 129Uppsla RegionCAMPUS ULTUNA (C)Uppsla RegionGÄVLE (D)NORRTULLULTUNA VÄSTER NORRVILLA-STADENVALL-BACKENSÖDERmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 15 utb. res. Ångström Kronåsen 7:1 — — — uppsala 0 0 0 0 0 21,743c 17 SVA 1 ultuna 2:23 ulls väg 4 1976 Slu uppsala 738 0 993 1,346 0 6,346c 17 SVA 2, Säkerhetslab ultuna 2:23 Travvägen 23 2003 SVA uppsala 2,981 0 7,986 2,679 0 72,416c 17 SVA 3, Patologen ultuna 2:23 ulls väg 2 1999 SVA uppsala 25,136 1,645 37,872 1,426 0 127,205c 18 Klinikcentrum ultuna 2:23 ulls väg 12 1976 Slu uppsala 30,252 3,988 35,682 1,179 0 25,234c 19 Ekologihuset ultuna 2:23 ulls väg 16 1971 Slu uppsala 9,305 413 12,391 1,332 0 68,428c 20 Södra Gärdet 2 ultuna 2:23 c Barthelsväg 6 1967 Skanska AB uppsala 6,603 1,770 4,920 745 0 5,440c 20 Södra Gärdet 3 ultuna 2:23 ulls väg 28 A 1950 Slu uppsala 2,953 0 3,404 1,153 0 23,011c 21 Friskis & Svettis ultuna 2:23 ulls väg 22 B 2008 Slu uppsala 2,832 0 3,919 1,384 0 37,328c 22 markvetenskap ultuna By 1 ultuna 2:23 Gerda nilsson väg 2 1973 Slu uppsala 8,870 0 6,863 774 0 12,600c 23 Rektorsvillan – ultuna By 2 ultuna 2:23 undervisningsplan 7 c 1923 Slu uppsala 1,604 0 2,826 1,762 0 17,777c 30 Biocentrum ultuna By 3 ultuna 2:23 Almas allé 5 2011 Slu uppsala 16,285 0 37,465 1,216 0 526,000c 31 mark Vatten miljö ultuna By 3 ultuna 2:23 lennart Hjelms väg 9 2011 Slu uppsala 11,641 0 24,598 984 0 306,000c 24 Tyskbackshagen 1 ultuna 2:23 ulls väg 27–29–Almas allé 8 1974 Slu uppsala 11,055 0 18,585 1,681 0 34,000c 24 Tyskbackshagen 2 ultuna 2:23 Almas allé 10 1973 Slu uppsala 9,462 0 15,614 1,650 0 153,769c 24 Tyskbackshagen 3 ultuna 2:23 duhrevägen 8 1862 Slu uppsala 5,395 0 5,453 1,011 0 34,694c 25 dekanhuset ultuna 2:23 Arrheniusplan 12 2000 Slu uppsala 3,710 0 3,099 835 0 19,384c 26 Herrgården ultuna 2:23 Arrheniusplan 2 B–d 1700 uPSYS uppsala 1,511 156 1,735 1,148 0 12,434c 27 ultuna Hamn 3 ultuna 2:23 Arrheniusplan 8 1876 Slu uppsala 7,809 5,351 1,885 241 0 11,000c 27 ultuna Hamn 4 ultuna 2:23, 2:15 Hampus von Posts väg 8 1913 Slu uppsala 7,037 492 5,496 781 1,203,693 25,000c 28 Tyskbacken 1, Teknikpark ultuna 2:23 Vallv. 2–6, ulls v. 37–41 1977 Oncolog medical QA AB uppsala 7,212 2,069 5,740 796 0 25,489c 28 Tyskbacken 2, Teknikhuset ultuna 2:23 ultunaallén 4 1941 JTI uppsala 5,499 1,116 4,754 720 0 23,882c 28 Tyskbacken 3, Silvikum ultuna 2:23 Vallvägen 9 A–d 1935 Slu uppsala 2,531 0 3,292 1,301 0 16,606c 28 Tyskbacken 4, miljöanalys ultuna 2:23 ulls väg 31 A–B 1967 Slu uppsala 4,951 0 4,194 847 0 20,982c 28 Tyskbacken 5, Skandinova ultuna 2:23 ulltunaallén 2 1949 Scandinova Systems ABuppsala 2,061 130 2,256 1,095 0 11,777c 28 Tyskbacken 6, Solibro ultuna 2:23 Vallvägen 5 2007 Solibro Research AB uppsala 1,238 0 3,151 2,545 0 19,706c 28 Tyskbacken 7 ultuna 2:23 Vallvägen 1997 Slu uppsala 1,643 300 1,375 837 0 4,000c 28 Tyskbacken 8 ultuna 2:23 ultunaallén 4 1949 JTI uppsala 1,782 0 899 504 0 3,100c naturicum (Bäcklösa) ultuna 2:23 Bäcklösavägen 13 A 1945 Slu uppsala 6,030 769 5,823 966 0 24,738c utb.res. ultuna ultuna 2:23 — — — uppsala 0 0 0 0 0 83,219d 29 Kungsbäck 1 Kungsbäck 2:8 Kungsbäcksvägen 47 1908 Gävle university Gävle 29,805 0 48,327 1,621 108,563 305,820d 29 Kungsbäck 2 Kungsbäck 2:8 Stenhammarsvägen 9 1908 Gävle university Gävle 8,818 1,420 9,448 1,071 0 33,412d 29 Kungsbäck 3 Kungsbäck 2:8 Stenhammarsväg 11 1908 KoK Bygg AB Gävle 701 194 182 260 0 0d 29 Kungsbäck 4 Kungsbäck 2:8 Kungsbäcksvägen 47 1999 Gävle university Gävle 5,253 0 8,986 1,711 0 70,209Properties underconstruction1,517,982TOTAL 575,192 29,862 915,912 1,518 1,872,183 10,094,252Rent reductions and vacant space -21,997non-recurring rental revenue 26,511Rental revenue, net 920,426

130AKADEMISKA HUS 2012PROPERTY SPECIFICATIONStockholm RegionSTOCKHOLM (A)DStockholm RegionCAMPUS SOLNA (B)HAGABVASA-STADENENORRMALMmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 Botanicum n djurgården 1:46 lilla Frescativägen 5 1973 Stockholm university Stockholm 8,864 0 13,823 1,559 0 106,160A 2 Psyk. Inst. n djurgården 1:45 Frescati Hagväg 8 1916 Stockholm university Stockholm 6,343 138 7,827 1,234 53,364 65,495A 2 Psyk. Inst. n djurgården 1:45 Frescati Hagväg 14 1944 Stockholm university Stockholm 2,823 0 3,238 1,147 0 26,085A 2 Stressforskninginst. n djurgården 1:45 Frescati Hagväg 16 A 1955 Stockholm university Stockholm 3,478 64 402 116 0 29,271A 2 Fytotronen n djurgården 1:45 Frescati Hagväg 9 1965 Stockholm university Stockholm 1,055 0 497 471 0 2,854A 2 Trädgårdsvillan n djurgården 1:45 Frescati Hagväg 7 1800 Stockholm university Stockholm 489 209 402 822 0 824A 2 Psyk. Inst. n djurgården 1:45 Frescati Hagväg 12 1948 mum Projektbyggarna Stockholm 720 0 1,024 1,422 0 9,892A 3 Inst. Orientaliska språk n djurgården 1:44 Kräftriket 1 A 1911 Stockholm university Stockholm 323 0 342 1,059 70,540 1,652A 3 Företagsekon. Inst. n djurgården 1:44 Kräftriket 2 A–c 1911 Stockholm university Stockholm 9,510 404 16,968 1,784 0 157,317A 3 Inst. Orientaliska språk n djurgården 1:44 Kräftriket 4 A–B 1911 Stockholm university Stockholm 2,200 50 2,226 1,012 0 10,181A 3 matematiska Inst. n djurgården 1:44 Kräftriket 5 A–B 1911 Stockholm university Stockholm 2,484 0 3,959 1,594 0 34,334A 3 matematiska Inst. n djurgården 1:44 Kräftriket 6 A–B 1911 Stockholm university Stockholm 2,734 0 4,354 1,593 0 37,709A 3 Score n djurgården 1:44 Kräftriket 7 A–c 1911 Stockholm university Stockholm 1,556 0 1,789 1,149 0 17,318A 3 Värdshuset n djurgården 1:44 Kräftriket 9 A–c 1911 Kräftan AB Stockholm 723 0 1,029 1,423 0 5,820A 3 Stlm Resilience centre n djurgården 1:44 Kräftriket 10 A–c 1911 Stockholm university Stockholm 634 0 1,023 1,614 0 9,157A 3 centraltvätt n djurgården 1:44 Kräftriket 11 A 1911 Arcimboldo AB Stockholm 316 48 322 1,018 0 0A 3 Kontorsbyggnad n djurgården 1:44 Kräftriket 16 A–d 1944 Boomerang Int. Stockholm 1,176 0 2,247 1,911 0 22,586A 3 Butik & garagebyggnad n djurgården 1:44 Kräftriket 14 A 1930 TF Häst & Fritid Kaskad Stockholm 244 0 230 942 0 936A 3 naprapathögskolan n djurgården 1:44 Kräftriket 24 A–c 1952 midbacken AB Stockholm 3,342 0 6,548 1,959 0 74,295A 3 Inst. Orientaliska språk n djurgården 1:44 Kräftriket 17 1957 Stockholm university Stockholm 3,106 318 1,330 428 0 1,276A 4 Albano — — — Hochtief Solutions AG Stockholm 0 0 48,692 74,000A 5 Studenspalatset Bergsmannen S. 8 norrtullsgatan 2 1920 Stockholm university Stockholm 3,147 0 5,030 1,598 1,232 54,787A 6 Spökslottet Kungstenen 4 drottninggatan 116 1700 Stockholm university Stockholm 1,350 0 3,133 2,320 1,211 40,600A 7 Arkitektur domherren 1 Östermalmsgatan 26 1970 Royal Institute of Technology Stockholm 11,839 0 15,442 1,285 5,294 100,000B 8 Hagaskolan Haga 4:35 Fogdevreten 2 A–d 1942 Karolinska Institute Solna 2,698 0 4,177 1,548 0 50,840B 9 KI Science Park Haga 4:35 Tomtebodavägen 23 1960 Swedish Orphan Biovitrum AB Solna 16,233 0 67,350 4,149 0 1,012,993B 10 SmI säk.lab. Haga 4:35 nobelsväg 23 2000 Swedish Institute for InfectiousSolna 1,068 0 10,571 9,898 0 58,327disease controlB 11 Vir. lab. SmI Haga 4:35 nobels väg 21 2005 Swedish Institute for InfectiousSolna 2,979 0 11,216 3,765 0 142,313disease controlB 12 Smittskyddsinstitutet Haga 4:35 nobels väg 18 1952 Karolinska Institute Solna 13,382 0 55,927 4,179 0 518,326B 13 Bakteriologiska Inst. Haga 4:35 Theorells väg 3 1957 Karolinska Institute Solna 4,694 0 17,108 3,645 0 181,257B 14 Röda Villan Haga 4:35 Theorellsväg 5 2007 Solna 1,297 0 0 0 0 0B 15 Rättsmedicin Haga 4:35 Retzius väg 5 1951 national Board ofSolna 4,619 0 9,721 2,105 0 119,947Forensic medicineB 16 Wargentinhuset Haga 4:35 nobels väg 12 A–B 1948 Karolinska Institute Solna 7,677 0 22,599 2,944 0 260,573B 17 KI bibl., Friskis & Svettis Haga 4:35 nobelsväg 6 B 1947 motionsidrottens service- Solna 2,095 0 3,812 1,820 0 32,227bolag i Sthlm ABB 17 KI aula och kontor Haga 4:35 Solnavägen 7 2013 Solna 26,202

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 131Stockholm RegionCAMPUS HUDDINGE (C)Stockholm RegionFRESCATI (D)FLEMINGSBERGmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEB 18 Farmakologiska Inst. Haga 4:35 nanna Svartz väg 2 1950 Karolinska Institute Solna 4,553 0 11,693 2,568 0 105,359B 19 KI administration Haga 4:35 nobels väg 5 1951 Karolinska Institute Solna 5,344 0 10,146 1,899 0 126,009B 20 Gammelgården Haga 4:35 nobels väg 2 1750 Karolinska Institute Solna 345 0 442 1,282 0 4,435B 21 ludwiginstitutet Haga 4:35 nobels väg 3 1948 Karolinska Institute Solna 5,918 0 11,756 1,986 0 107,794B 22 cGB laboratoriet Haga 4:35 Berzelius väg 37 1950 Karolinska Institute Solna 4,451 0 16,395 3,683 0 173,802B 23 cell & molekylärbiologi Haga 4:35 von Eulers väg 5 1960 Karolinska Institute Solna 4,680 0 11,683 2,496 0 202,060B 24 Fysiologiska Inst. Haga 4:35 von Eulers väg 4 A–B 1948 Karolinska Institute Solna 7,733 0 24,735 3,199 0 241,923B 25 Inst. för Tumörbiologi Haga 4:35 Berzelius väg 14 1983 Akademiska Hus Stockholm Solna 2,158 0 3,802 1,762 0 44,932B 26 Astrid Fagreuslab. Haga 4:35 Tomtebodavägen 2 2003 Karolinska Institute Solna 4,694 0 28,437 6,058 0 184,977B 27 Hyresbostäder Haga 4:35 Berzeliusväg 2 A–G 1949 Karolinska Institute Solna 646 0 479 741 0 1,369B 28 Jernhusmark Haga 4:35 Tomtebodavägen 3 d — Akademiska Hus Stockholm Solna 1,313 151 1,417 1,079 0 0B 29 Berzeliuslaboratoriet Haga 4:35 Berzelius väg 3 1972 Karolinska Institute Solna 13,338 0 36,081 2,705 0 411,709B 30 Restaurang Jöns Jacob Haga 4:35 Retzius väg 24 1978 Karolinska Institute Solna 2,978 0 4,975 1,671 0 29,351B 31 IcHAR Haga 4:35 nobels väg 9 1942 Karolinska Institute Solna 4,747 0 9,913 2,088 0 109,360B 32 Scheelelab. Haga 4:35 Tomtebodavägen 6 1997 Karolinska Institute Solna 19,432 0 58,706 3,021 0 730,459B 33 P-hus KI söder Haga 4:35 Tomtebodavägen 7–9 2003 Swedish Institute for InfectiousSolna 4,956 0 0 0 0disease controlB 34 Retziuslab Haga 4:35 Retzius väg 8 2001 Karolinska Institute Solna 14,526 0 54,733 3,768 0 616,285B 35 Tomteboda, Ecdc Haga 4:35 Tomtebodavägen 11 A 1888 Ecdc Solna 12,505 904 22,195 1,775 319,319 241,463B 36 Folkhälsohuset Haga 4:35 Tomtebodavägen 18 A 2012 Karolinska Institute Solna 14,750 0 4,012 447,708c 37 Ki-Syd huvudbyggnad Ormbäraren 3 Alfred nobels Allé 8 — Karolinska Institute Flemingsberg35,761 0 64,709 1,809 26,941 526,105c 38 Bipontus Ormbäraren 3 Alfred nobels Allé 10 1998 Karolinska Institute Flemingsbergc 39 Pontus Ormbäraren 3 Alfred nobels Allé 12 1998 Karolinska Institute Flemingsbergc 40 Zanderska huset Embryot 1 Alfred nobels Allé 23 2002 Karolinska Institute Flemingsberg6,557 0 14,455 2,205 0 137,8765,912 0 13,586 2,298 0 139,55716,819 0 39,510 2,349 36,119 445,986d 41 manne Sieghbahnhusen n djurgården 1:48 Frescativ 24 A m fl — Stockholm university Stockholm 6,724 0 9,311 1,385 0 92,770d 42 Geovetenskapens hus n djurgården 1:48 S. Arrhenius v 6 A 1997 Stockholm university Stockholm 18,143 0 49,771 2,743 0 550,438d 43 Arrheniuslab. n djurgården 1:48 S. Arrhenius v 16 c–d 1973 Stockholm university Stockholm 46,294 19 104,373 2,255 0 999,344d 44 Frescatibackehusen n djurgården 1:48 S. Arrhenius väg 21 A 1944 Stockholm university Stockholm 9,687 235 9,850 1,017 0 72,112d 45 nobelhusen n djurgården 1:48 Frescativ 14 A–B — Stockholm university Stockholm 1,362 0 1,635 1,201 0 12,019Student uniond 46 Pic-nic restaurang n djurgården 1:48 Frescativägen 18 — Restaurant university Stockholm 287 0 413 1,439 0 2,799d 47 Aula magna n djurgården 1:48 Frescativägen 6 1997 Stockholm university Stockholm 6,480 0 19,114 2,950 0 253,657d 48 Allhuset lantis n djurgården 1:48 universitetsvägen 7 1994 Stockholm university Stockholm 9,254 158 11,374 1,229 291,895 88,223

132AKADEMISKA HUS 2012PROPERTY SPECIFICATIONStockholm RegionKTH CAMPUS (E)E20277VASASTADENmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEd 49 Vaktm.bost Skära villan n djurgården 1:48 S. Arrhenius väg 30 1800 Stockholm university Stockholm 1,921 0 1,910 994 0 13,984d 50 Rektorsämb. Bloms hus n djurgården 1:48 universitetsvägen 16 1850 Stockholm university Stockholm 1,420 0 1,920 1,352 0 16,354d 51 universitetsbibl. n djurgården 1:48 S. Arrhenius v 28 1982 Stockholm university Stockholm 21,581 0 31,787 1,473 0 327,754d 52 Södra Huset n djurgården 1:48 universitetsv 10 A m fl 1971 Stockholm university Stockholm 53,998 0 91,288 1,691 0 1,041,638d 53 Studenthuset n djurgården 1:48 universitetsvägen 2 A–F 2013 Stockholm 30,464E 54 KTH & danshögskolan maskining. 1 Brinellvägen 58 1966 KTH Stockholm 23,482 1,420 53,141 2,263 24,383 645,164E 55 KImAB n djurgården 1:49 drn Kristinas v 48 1946 KTH Stockholm 4,313 3,384 5,220 1,210 0 41,584E 56 Bergsvetenskap n djurgården 1:49 Brinellvägen 23 1967 KTH Stockholm 10,829 0 22,260 2,056 0 245,064E 57 Väg- & vatten n djurgården 1:49 Brinellvägen 30–36 1972 univ. of dance and circus Stockholm 7,690 780 8,846 1,150 0 94,107E 58 Väg- & vatten n djurgården 1:49 Teknikringen 72–76 1957 KTH Stockholm 7,648 0 10,828 1,416 0 166,686E 59 Byggkonstruktion n djurgården 1:49 Teknikringen 78 1957 KTH Stockholm 3,450 0 5,474 1,587 0 62,597E 60 lantmäteriet n djurgården 1:49 drn Kristinas v 30 1958 KTH Stockholm 7,678 0 13,470 1,754 0 159,490E 61 Hyresbostäder n djurgården 1:49 Teknikringen 60, 62 1947 Private individual Stockholm 2,262 0 1,649 729 0 3,548E 62 Alfvèn och Opera n djurgården 1:49 Teknikringen 31–35 1953 KTH Stockholm 12,892 0 17,800 1,381 0 174,281E 63 Röda Korset n djurgården 1:1 Brinellvägen 8 1927 KTH Stockholm 6,510 0 11,106 1,706 153,675E 64 Kemi n djurgården 1:49 Teknikringen 10 1931 KTH Stockholm 1,276 0 3,030 2,374 0 52,712E 65 Rest Syster & Bror n djurgården 1:49 drn Kristinas v 22–24 1964 Festvåningen muren AB Stockholm 902 0 1,644 1,823 0 12,939E 66 Farkostteknik n djurgården 1:49 Teknikringen 6 1931 KTH Stockholm 7,844 0 14,640 1,866 0 230,561E 67 Byggnad för kemi n djurgården 1:49 Teknikringen 26–36 1922 KTH Stockholm 19,713 0 51,152 2,595 0 608,915E 68 Teknisk fysik n djurgården 1:49 Teknikringen 14 1962 KTH Stockholm 4,313 0 23,660 5,486 0 134,673E 69 Sing Sing n djurgården 1:49 lindstedtsvägen 30 1948 KTH Stockholm 10,640 0 23,648 2,223 0 299,937E 70 Värme- och kraft n djurgården 1:49 drn Kristinas v 14–18 1952 HI3G Access AB Stockholm 32 0 524 16,380 0 0E 71 KTH Bibliotek n djurgården 1:49 Osquars backe 31 1917 KTH Stockholm 9,350 0 22,610 2,418 0 299,856E 72 Hållfasthetslära n djurgården 1:49 drn Kristinas v 4–8 1943 KTH Stockholm 4,346 0 7,951 1,829 0 108,353E 73 KTH huvudbyggnad n djurgården 1:49 lindstedtvägen 1917 KTH Stockholm 22,117 0 54,394 2,459 0 698,041E 74 IVl n djurgården 1:49 Valhallavägen 81 1930 Swedish Environmental Stockholm 3,313 0 7,852 2,370 0 95,859Research InstituteE 75 KTH adm.byggnad n djurgården 1:49 Valhallavägen 79 1935 KTH Stockholm 2,923 0 5,994 2,051 161,507 74,393E 76 Huvudbyggnad Forskningen 1 drn Kristinas v 25 1939 Academic Work Sweden Stockholm 2,443 0 3,430 1,404 63,747 37,494E 77 Provningsanstalt Forskningen 1 drn Kristinas v 33 A–d 1920 Swe national defence college Stockholm 2,878 0 3,778 1,313 0 33,203E 78 Försvarshögskolan Forskningen 1 drn Kristinas v 31 1920 Swe national defence college Stockholm 16,368 0 43,847 2,679 0 593,477E 79 Fd Hovjägarbostället Forskningen 1 drn Kristinas v 41 1886 Swe national defence college Stockholm 263 0 364 1,383 0 3,836E 80 Ytkemiska Inst. Forskningen 1 drn Kristinas v 47–51 1943 Inst for Surface chemistry Stockholm 6,680 467 9,503 1,423 0 83,901E 81 Q-husen Forskningen 1 Osquldas väg 10–12 1991 KTH Stockholm 13,554 0 30,226 2,230 0 381,291E 82 KImAB Forskningen 1 drn Kristinas v 53 1958 Stockholm 1,752 1,862 1,956 1,116 0 14,834E 83 Huvudbyggnad STFI Forskningen 1 drn Kristinas v 55–63 1946 Innventia AB Stockholm 10,457 0 17,243 1,649 0 235,009

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 133Stockholm RegionKISTA (F)Stockholm RegionCAMPUS KONRADSBERG (G)160KISTAMARIEBERGmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEE 84 Trätek Forskningen 1 drn Kristinas v 65–67 1946 SP Technical Research Stockholm 3,013 0 3,389 1,125 0 27,073Institute of SwedenE 85 GIH Idrottshögskolan 1lidingövägen 1 1940 college of Physical Stockholm 15,649 0 18,749 1,261 32,030 292,144Education and SportsF 86 Forum Reykjanes 1 Isafjordsgatan 39 1984 KTH Kista 44,658 2,417 54,143 1,212 20,078 280,000F 87 Electrum 3 Keflavik 2 Isafjordsgatan 28 1998 Swerea KImAB AB Kista 16,120 1,000 15,544 964 0 157,088F 88 Electrum 1 Keflavik 2 Isafjordsgatan 18–26 1987 KTH Kista 44,326 3,373 51,457 1,161 22,929 420,947G 89 Hus F–J, Konradsberg Ormbäraren 3 Rålambsvägen 30 2002 Stockholm university Stockholm 9,142 0 16,813 1,839 35,002 192,302G 90 Hus K, Konradsberg Ormbäraren 3 Konradsbergsgatan 7 2002 Stockholm university Stockholm 7,207 0 16,126 2,238 0 205,520G 91 Hus T, Konradsberg Ormbäraren 3 Rålambsvägen 32 A–c 2002 national Agency for Stockholm 9,449 0 17,637 1,867 0 220,131Special needs Educationand SchoolsG 92 Vaktmästarbostad Ormbäraren 3 Rålambsvägen 24 — Stockholm university Stockholm 158 0 257 1,627 0 2,310G 93 Hus A–E, Konradsberg Ormbäraren 3 Rålambsvägen 22–24 — Stockholm university Stockholm 5,648 0 10,702 1,895 0 125,339G 94 Hus O, Konradsberg Ormbäraren 3 Konradsbergsgatan 1 2001 Stockholm university Stockholm 6,208 0 13,830 2,228 0 170,473G 95 V1 & V2, Konradsberg Ormbäraren 3 Konradsbergsg 3 A–B — Stockholm university Stockholm 1,110 0 1,955 1,762 0 21,941G 96 Hus Q, Konradsberg centauren 1 Konradsbergsg 24 1861 Int. montessori School Stockholm 9,760 0 19,428 1,991 17,094 263,021G 97 Professorsvillan Taffelberget 7 Gjörwellsgatan 18 1900 Reggio Emilia Institute Stockholm 495 0 730 1,475 1,162 7,556utbyggnadsreserv KI Haga 4:35 — — Solna 0 0 0 50,139utbyggnadsreservFlemingsbergutbyggnadsreservForskningen— — — Flemingsberg0 0 49,237— — — Stockholm 0Swartlings Svea Artilleri 12 — — Stockholm 1,656 1,656 10 6 9,515 28,879dramatiska Inst. Tre Vapen 7 Valhallavägen 185–189 2004 university college of Film, Stockholm 13,948 1,095 28,642 2,053 6,968 410,714Radio, Television andTheatreAskölaboratoriet Askö 1:4 Trosa skärgård — Stockholm university Stockholm 2,402 2,986 1,243 324,270 14,571Trosa mätstation nynäs 5:1 — — Stockholm university nyköping 52 43 824 0 0Properties underconstruction1,834,084TOTAL 915,384 20,152 1,821,951 2,026 1,573,292 22,334,584Rent reductions and vacant space -43,529Revenue, disposed properties 1,090Rental revenue, net 1,779,512

134AKADEMISKA HUS 2012PROPERTY SPECIFICATIONNorthern RegionUMEÅNorthern RegionUMEÅ CAMPUS (A)GAMMLIACENTRUMÖST PÅ STANASJUKHUS-OMRÅDETÖST-TEGÅLIDHEMmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEA 1 Humanistpaviljong Stadsliden 6:6 Humanioragränd 4 1992 umeå university umeå 595 0 566 951 0 4,218A 2 norra BVH Stadsliden 6:6 Humanioragränd 5 2003 umeå university umeå 4,751 0 5,769 1,214 0 52,663A 3 Humanisthuset Stadsliden 6:6 Biblioteksgränd 3 1972 umeå university umeå 13,548 0 14,123 1,042 0 112,758A 4 BVH Stadsliden 6:6 mediagränd 14 1992 umeå university umeå 7,249 0 8,378 1,156 0 73,268A 5 Bibliotek Stadsliden 6:6 Biblioteksgränd 12 1968 umeå university umeå 19,708 0 18,283 928 0 191,822A 6 Samhällsvetarhuset Stadsliden 6:6 Hörsalstorget 4 1968 umeå university umeå 20,978 0 23,706 1,130 0 194,958A 7 lärarutbildningshuset Stadsliden 6:6 universitetstorget 30 1996 umeå university umeå 8,899 0 10,017 1,126 0 91,091A 8 Förvaltningshuset Stadsliden 6:6 universitetstorget 18 1983 umeå university umeå 7,896 0 7,907 1,001 0 72,819A 9 Hus för samverkan Stadsliden 6:6 universitetstorget 14 2004 umeå university umeå 2,841 0 5,869 2,066 0 41,645A 10 uERc Stadsliden 6:6 Johan Bures väg 5 1980 umeå university umeå 6,802 0 21,453 3,154 0 238,254A 11 Aula nordica Stadsliden 6:6 universums gränd 4 1987 umeå university umeå 2,696 0 2,317 859 0 17,631A 12 universum Stadsliden 6:6 universums gränd 8–10 1970 umeå university umeå 8,953 417 8,670 968 0 46,156A 13 mIT Stadsliden 6:6 campustorget 5 1992 umeå university umeå 12,846 0 23,065 1,796 0 161,719A 14 naturvetarhuset Stadsliden 6:6 Johan Bures väg 14 1970 umeå university umeå 23,354 0 29,572 1,266 0 249,412A 15 Biologihuset Stadsliden 6:6 Johan Bures väg 12 1963 umeå university umeå 9,819 0 9,123 929 0 46,313A 16 Fysiologihuset Stadsliden 6:6 Artedigränd 7 1969 umeå university umeå 10,891 0 14,885 1,367 0 78,680A 17 KBc Stadsliden 6:6 linnaeus väg 6 1999 umeå university umeå 11,369 0 18,564 1,633 0 147,184A 18 Kemihuset Stadsliden 6:6 linnaeus väg 10 1963 umeå university umeå 11,417 0 13,520 1,184 0 110,946A 19 Teknikhuset Stadsliden 6:6 Håken Gullesons väg 20 1992 umeå university umeå 6,446 0 8,659 1,343 0 70,061A 20 Fysikhuset Stadsliden 6:6 linnaeus väg 20 1980 umeå university umeå 3,200 0 7,149 2,234 0 48,209A 21 Kemiskt säkerhetshus Stadsliden 6:6 Håkan Gullesons väg 11 1985 umeå university umeå 462 0 587 1,271 0 4,773A 22 Akademiska Hus kontor Stadsliden 6:6 Artedigränd 2 1977 Akademiska Hus north umeå 1,682 0 1,807 1,074 0 14,871A 23 Wallenberglab Stadsliden 6:6 Artedigränd 14 1973 Swedish university of umeå 1,009 71 1,895 1,878 0 6,769Agricultural SciencesA 24 Sveriges lantbruksuniversitet Stadsliden 6:6 Skogsmarksgränd 17 1978 Swedish university of umeå 23,982 267 39,121 1,631 0 269,218Agricultural SciencesA 25 nTK Kårhus Stadsliden 6:6 Gösta Skoglunds väg 25 2007 umeå university umeå 440 0 688 1,564 0 5,547A 26 Iksu Sportcenter Stadsliden 6:6 Sportgränd 5 2006 Foundation universitetshallenumeå 5,307 0 6,842 1,289 0 69,456A 27 umeå campus Friidrotts- Stadsliden 6:6 Petrus lestadius väg 15 2010 umeå municipal Authority umeå 393 3,149 n/a 34,812arenaA Parkeringsytor och mark Stadsliden 6:6 P-områden & vägar — umeå university umeå 0 0 51 899,625 56,376B 29 d-Huset Porsön 1:405 laboratorievägen d2 1971 luleå university luleå 15,292 0 20,513 1,341 0 125,817B 29 centekhuset Porsön 1:405 Tekniktorget 3 1987 luleå university luleå 1,576 0 1,859 1,180 0 15,371B 30 E-Huset Porsön 1:405 laboratorievägen E12 1974 luleå university luleå 18,166 0 26,644 1,467 0 188,544

AKADEMISKA HUS 2012PROPERTY SPECIFICATION 135Northern RegionLULEÅ (B)Northern RegionSUNDSVALL (C)HAGANORRMALMVÄSTERMALMSTEN-STADENSÖDERMALMmAPREFEREncEPROPERTY nAmEPROPERTYdESIGnATIOnAddRESSYEAR OFcOnSTRucTIOnPRIncIPAlcuSTOmERlOcATIOnREnTABlE FlOORSPAcE, TOTAl, m²VAcAnTREnTAl REVEnuE,Incl. SuPPlEmEnTS,KSEKAVERAGE REnT,SEK/m²lAnd AREA, m²/REGISTER PROPERTYASSESSEd FAIRVAluEB 31 K-Huset Porsön 1:405 laboratorievägen 14 1976 luleå university luleå 1,014 0 1,000 986 0 5,579B 31 F-Huset Porsön 1:405 laboratorievägen 1976 luleå university luleå 25,689 0 31,264 1,217 0 256,262B 32 A-Huset Porsön 1:405 Regnbågsallén 2 1977 luleå university luleå 13,613 0 14,485 1,064 0 103,470B 32 Ekonomihuset Porsön 1:405 universitetsvägen A1 1993 luleå university luleå 4,631 0 5,387 1,163 0 45,177B 33 B-Huset Porsön 1:405 Regnbågsallén B8, B10 1978 luleå university luleå 6,152 0 8,695 1,413 0 59,561B 33 Bibliotek Porsön 1:405 Vintergatan 2 1994 luleå university luleå 6,355 0 7,697 1,211 0 61,434B 34 c-Huset Porsön 1:405 universitetsvägen c 1 1975 luleå university luleå 12,596 0 18,419 1,462 0 127,826B 39 Idrottshall Porsön 1:405 universitetsvägen c 11 1976 luleå university luleå 2,457 0 1,805 735 0 14,710B Porsön Porsön 1:405 laboratorievägen d2 1998 luleå university luleå 0 0 502 322,072 12,848c 27 Västhagen Västhagen 1 Fabriksgatan 26 1997 English School Sundsvall 6,284 0 6,176 983 17,789 56,758c 28 Ågården Åkroken 1 Holmgatan 10 1999 mid Sweden university Sundsvall 622 0 670 1,077 32,900 3,953c 28 Stenhuset Åkroken 1 Holmgatan 10 2005 mid Sweden university Sundsvall 2,225 0 3,522 1,583 0 32,786c 28 Holmgården Åkroken 1 Holmgatan 10 1997 Åkroken Science Park Sundsvall 882 0 644 730 0 3,678c 28 Hus R Åkroken 1 Holmgatan 10 2009 mid Sweden university Sundsvall 2,073 0 3,913 1,888 0 39,859c 28 Åkroken Åkroken 1 Holmgatan 10 1997 mid Sweden university Sundsvall 16,393 0 29,423 1,795 0 218,648c 28 FScc Åkroken 1 Holmgatan 10 2001 mid Sweden university Sundsvall 4,220 0 8,806 2,087 0 64,068norrbyn fältstation norrbyn 2:122 norrbyn 1984 umeå university norrbyn 2,489 0 4,639 1,864 9,504 22,454IRF Kiruna 1:307, 1:308 Väg E10 1957 Swedish Institute of Kiruna 7,686 0 12,332 1,604 164,513 54,281Space PhysicsIRF mottag.station Kiruna 1:308 m fl Väg E10 1957 Swedish Institute of Kiruna 557 0 557 1,000 39,830 2,344Space PhysicsProperties underconstruction69,165TOTAL 378,505 755 514,687 1,360 1,486,233 4,096,223Rent reductions and vacant space -3,760Rental revenue, net 510,927

AKAdEmISKA HuS 2012136 DEFINITIONS, GLOSSARY AND ADDRESSESDefinitionsPROPERTY-RELATED KEY FIGURESGross investmentsInvestments during the year in fixed assets.Letting and vacant space levelslet or vacant floor space in relation to thetotal floor space. Financial letting or vacantspace levels are rental revenue for space letand estimated rental revenue for vacant spacein relation to the total rental revenue.Net investmentsclosing balance minus opening balance fornon-current assets plus depreciation andimpairments minus revaluations.Net operating income rationet operating income in relation to managementincome.YieldOperating surplus in relation to the averageassessed fair value.FINANCIAL KEY FIGURESEquity ratioReported equity in relation to total assetscarried forward.Interest-bearing net loan liabilityInterest-bearing loans, financial derivativesand current interest-bearing investments.Pension provisions and similar items are notincluded.Interest coverage ratioProfit before financial items, excluding changesin the value of properties in relation to netfinancial income and expense, excludingchanges in value in financial derivatives andincluding period allocation of realised profitsfrom derivatives.Internal financing ratioThe part of the tangible, non-current assetsprocured during the year that could befinanced using funds earned internally duringthe year.Loan-to-value ratioInterest-bearing net loan debt in relation tothe closing value of investment properties.Return on equity after standard taxEarnings after financial items with a deductionfor full tax in relation to average equity.Total yielddirect yield from properties and their changein value, expressed in per cent.Yield on total capitalOperating income plus financial income inrelation to average total assets.GLOSSARYFloor space, m 2 , grossThe gross floor space of the building. comprisesrentable floor space as well as common areasand the area surrounding the building.Floor space, m 2Rentable floor space in square metres.Interest-bearing liabilitiesInterest-bearing loans, including pensionprovisions and similar items.Maintenance costsmaintenance costs are all technical, administrativeand managerial measures taken duringthe lifetime of the unit to maintain it or toreinstate it to a condition that it can performthe required function. maintenance costs aredivided into remedial maintenance and preventivemaintenance.Operating expensesOperating expenses for measures aimed atmaintaining the function of a property, installationetc. Operating expenses are divided intomedia provision and monitoring and service.Property administrationcost of management, day-to-day accountingadministration, letting, contact with tenants,handling of registers, contracts and drawings,technical planning and follow-up and humanresource administration.Rental revenueThe basic rent, index-linked, and estimatedrent for vacant rentable floor space andsupplements, with a deduction for vacanciesand rent reductions.ADDRESSESHEAd OFFIcEREGIOnSAkademiska HusBox 483Stampgatan 14SE-401 27 GöteborgTelephone: +46 (0)31-63 24 00akademiskahus.seinfo@akademiskahus.seAkademiska Hus Southern RegionOle Römers väg 2SE-223 63 lundTelephone: +46 (0)46-31 13 00Akademiska Hus Western RegionBox 476Stampgatan 14SE-401 27 GöteborgTelephone: +46 (0)31-63 25 00Akademiska Hus Eastern RegionOlaus magnus väg 34SE-583 30 linköpingTelephone: +46 (0)13-36 45 00Akademiska Hus Stockholm RegionBox 1394Berzelius väg 8, vån 3-5SE-171 27 SolnaTelephone: +46 (0)8-685 75 00Akademiska Hus uppsala RegionBox 185Artillerigatan 7SE-751 04 uppsalaTelephone: +46 (0)18-68 32 00Akademiska Hus northern RegionBox 7985Artedigränd 2SE-907 19 umeåTelephone: +46 (0)90-17 62 00

InFORmATIOn ScHEdulEApril 26 Annual General meetingApril 26 Interim Report, January–march 2013July 16 Interim Report, April–June 2013October 25 Interim Report, July–September 2013February 2014 Year-End Report 2013march 2014 Annual Report 2013akademiskahus.seFOR FuRTHER InFORmATIOn, PlEASE cOnTAcTKerstin lindberg Göransson, cEOTelephone: +46 (0)31 63 24 60e-mail: Kerstin.lindbergGoransson@akademiskahus.seGunnar Oders, director of Accounting and FinancingTelephone: +46 (0)31 63 24 26e-mail: gunnar.oders@akademiskahus.sePhotos: Rasmus norlander, Ola Kjelbye, Alex & martin,Jean-Baptiste BérangerIllustrations: Berg Arkitektkontor/Arkitektfirmaet c.F. moller,Jais Arkitekter, Aix Arkitekter, Sweco, lInK, 3XnTranslation: Patrick O’malley

Akademiska Hus Overview 2012IFurther informationWould like to know more? The Annual Reviewincludes reports on how Akademiska Hus,through new construction and management,is contributing to the developmentof preeminent knowledge environments atSwedish centres of education.The Annual Review and the Annual Reportcan be ordered at info@akademiskahus.se orcan be downloaded from akademiskahus.se.overviewAkademiska Hus Årsöversikt 2012As one ofSweden’s largestproperty companies,we build knowledgeenvironments for universitiesand colleges. Bydoing so, we contributeto a wiserSweden!akademiskahus.se info@akademiskahus.se