Interim report January-June 2023

Homes & Neighbourhoods

Bonava's markets stabilising

1 APRIL-30 JUNE 2023*

Net sales amounted to SEK 3,586 M (3,332)
· The gross margin was 10.4 per cent (16.2). Provisions totalling SEK 62 M in Sweden and Germany impacted the gross margin during the quarter.
Operating profit was SEK 195 M (332) and the operating margin was . 5.4 per cent (10.0)
· Earnings per share2) were SEK 0.34 (1.94)
· The number of housing units sold was 390 (666)
The number of production starts was 217 (709)
· The number of building rights amounted to 29,400 (29,700)
On 31 May, Bonava signed an agreement to divest its operations in St. . Petersburg. See further Note 6.
On 30 June, Bonava completed the divestment of its operations in . Norway. The purchase price totalled SEK 1,532 M, of which SEK 765 M was paid in cash upon completion of the transaction, and the remainder will be paid via vendor notes between 2024 and 2026. Capital loss totalled SEK -824 M. See further Note 6.
· The number of votes in Bonava AB changed as a result of the conversion of 40,000 Class A shares to 40,000 Class B shares. The total number of votes in the company is 208,830,660. For more information about the share, refer to page 15.

* Recognised revenue and profit pertain to continuing operations, excluding St. Petersburg and Norway. As of the third quarter of 2022, S:t Petersburg is reported as discontinued operations. As of the second quarter of 2023, Norway is reported as discontinued operations, and restated comparison figures can be found on www.bonava.com.

1 JANUARY-30 JUNE 2023*

· Net sales amounted to SEK 5,515 M (5,718)
· The gross margin was 9.8 per cent (14.7)
· Operating profit was SEK 167 M (431) and the operating margin was 3.0 per cent (7.5)
Earnings per share2) were SEK -0.51 (2.38)
· The number of housing units sold was 668 (1,412)
· The number of production starts was 551 (1,119)
The number of building rights amounted to 29,400 (29,700)
On 2 February 2023, Bonava announced a revision of its financial targets. A new target is that the operating margin is to amount to at least 10 per cent from 2026. Furthermore, the net debt/equity ratio will not exceed 1.0x. See further page 6.

SEK M and excluding St. Petersburg and	2023	2022		2023	2022		Jul 2022	2022
Norway unless otherwise stated	Apr-Jun	Apr-Jun	A%	Jan-Jun	Jan-Jun		A% - Jun 2023	Jan-Dec
Net sales	3,586	3,332	8	5,515	5,718	-4	13,783	13,987
Gross profit	374	538	-31	543	842	-35	1,390	1,688
Gross margin, %	10.4	16.2		9.8	14.7		10.1	12.1
Operating profit before items affecting comparability1)	195	332	-41	167	431	-61	594	858
Operating margin before items affecting comparability, %1)	5.4	10.0		3.0	7.5		4.3	6.1
Operating profit after items affecting comparability	195	332	-41	167	431	-61	538	802
Operating margin after items affecting
comparability, %	5.4	10.0		3.0	7.5		3.9	5.7
Profit before tax	47	291	-84	-74		355 -121	180	609
Earnings per share, SEK2)	0.34	1.94	-82	-0.51	2.38 -121		1.22	4.10
Net debt3)	6,631	5,881	21	6,631	5,881	21	6,631	7,259
Return on capital employed, R12, %31	4.6	10.6		4.6	10.6		4.6	6.9
Equity/assets ratio, %3)	29.2	33.9		29.2	33.0		29.2	31.2
Number of building rights	29,400	29,700	-1	29,400	29,700	-1	29,400	29,400
Number of housing units sold	390	ଚିଚିତ୍ର	-41	668	1,412	-53	1,792	2,536
Sales value of housing units sold	1,511	2,039	-26	2,421	4,586	-47	6,093	8,258
Number of production starts	217	709	-69	551	1,119	-51	1,945	2,513
whereof investment properties							231	231
Number of housing units in production	5,087	7,591	-33	5,087	7,591	-33	5,087	6,498
whereof investment properties	426	195		426	195		426	426
Sales rate for ongoing production, %43	65	72		65	72		65	ട്ടു
Number of housing units recognised in profit	1,203	1,145	5	1,806	1,944	- /	4,231	4,369

1) The key figures in Jul 2022-Jun 2023 and Jan-Dec 2022 were impacted by items affecting comparability.

? Before and after dilution. For more information about the Group's key figures, see page 25 and https://www.borava.org/inancial-information. 31 holuding St. Peterburg and Norway. Vendor notes recorded as asset in net debt. See Note 6. Calculated in accordance with the loan

agreement, the covenant was 29,4 per cent. Refer also to page 6.

4) Excluding Build-to-Manage. Including Build-to-Manage, the sales rate totalled 62 per cent.

1,792 NUMBER OF HOUSING UNITS SOLD, RTM

Comments from the CEO

In the second quarter we see signs of stabilising in our markets. The sale of the Norwegian operations improves our financial situation and we continue to take measures to increase selling and cash flow.

Stabilisation of the market during the quarter - increased sales No pronounced improvements in the market situation could be discerned in the second quarter, but we are seeing signs of stabilisation and cautiously rising figures in the number of housing units sold - from 278 in the first quarter to 390 in the second quarter. The priority for us is to continue selling, and to start projects where the conditions are right, while implementing measures to strengthen cash flow.

Our sales rate for housing units in ongoing production is 65 per cent, and we have binding contracts for housing units totalling around SEK 11.4 Bn to deliver over the coming 18 months. In projects where completion is planned for 2023, the sales rate is 75 per cent. We are seeing the highest level of sales activity in several of our significant German and Baltic sub-markets, with Berlin, Cologne, Dortmund and Riga. In Sweden and Finland as well, we are beginning to notice a gradual improvement from low volumes.

Continuous measures to strengthen cash flow

The market situation requires decisive action. We are primarily implementing three types of measures to strengthen cash flow and the balance sheet:

Firstly, we are working on boosting sales, and one key to this is being close to the market. With focus on continuing to sell homes even in a more challenging market, we are adapting our offering on an ongoing basis. As a result, we keep the volume of completed unsold housing units down, which would otherwise tie up a great deal of capital.

Secondly, we are reducing our overheads through both structural changes and adaptations to lower business volumes. We are well in line with previously communicated savings targets totalling SEK 600 M annually, but this will not be enough. We need to constantly adapt our savings measures to future business volumes. We recognise our costs net, after attributing them to projects, and recognise them in profit and loss when the units are handed over to customers. Even if we have decreased costs significantly, the rapidly falling volumes in ongoing projects mean that some functions have over-capacity. The cost for such functions cannot be fully attributed to projects and capitalised, and is instead recognised in profit and loss immediately. Even if we gradually reduce our costs, it is difficult to keep the pace on cost savings and decreased capitalisation in individual quarters, even if we are on track on an annual basis.

Thirdly, we continue to review and optimise our portfolio of building rights and projects. As a result of the new market situation, we are evaluating where we have the greatest potential to create profitable projects. We have begun sales of building rights that will generate positive cash flows. In some cases cash flow will take priority over selling price.

Increased sales with margins reflecting a focus on cash flow During the quarter, Bonava delivered housing units in accordance with plans, and net sales rose to SEK 3.6 Bn (3.3). Gross profit for the quarter was SEK 374 M (538), corresponding to a gross margin of 10.4 per cent (16.2). The gross margin reflects our focus on cash flow, where a higher share of investor transactions with lower margins but with periodic payment plans impacted the comparison with the preceding vear. In addition, we have taken measures in Sweden and Germany to improve future cash flows, and set aside risk provisions, together totalling SEK 62 M. Adjusted for these provisions, our underlying gross margin was 12.2 per cent. In the same period last year a higher share of projects to consumers, which are more profitable, were recognised.

Operating profit totalled SEK 195 M (332), corresponding to an operating margin of 5.4 per cent (10.0).

Strengthened financial position

Our priority is, and has been, to improve cash flow and our financial position in order to secure future re-financing. Bonava Norway was divested in the second quarter. Even if it was sold at a loss, the transaction frees up capital, reduces future investment requirements and creates better opportunities for the rest of the Group.

During the second quarter we also signed an agreement to sell the operations in St. Petersburg. The buyer is still working on obtaining approvals from authorities, which is a condition for the divestment and thereby for recognition in profit. The net assets in the operations are currently valued at zero in the balance sheet.

Net debt decreased to SEK 6.6 Bn. We fulfill the covenants in our loan agreements, with the equity/assets ratio amounting to 29.4 per cent (loan covenant, 25%) and the interest coverage ratio (operating profit/loss in relation to interest expense) amounting to 4.0 (loan covenant, 2.0). Our net debt/equity ratio (net debt in relation to visible shareholders' equity) was 0.9, compared with our internal target of 1.0.

New sustainable neighbourhoods are needed

Our industry is in a challenging situation, as rapidly increasing interest rates and rising cost for housing construction have created imbalances. Recovery will take time.

At Bonava, we know what needs to be done, and we are taking action. With a strengthened balance sheet and robust measures to streamline the operation, I am convinced that we will stand strong ahead of the turnaround in the housing market that awaits. Over the long term, the need for new sustainable neighbourhoods in our markets is significant.

Peter Wallin President and CEO

"The priority for us is to continue selling and to start projects where the conditions are right, while implementing measures to strengthen cash flow."

Market trend

Population growth and urbanisation in combination with low levels of housing construction over many years has led to a shortage of housing units in destination regions. In the long term, we foresee a large need for sustainable and well-planned homes. However, the market situation at present is challenging, with a sharp fall in housing construction as a result.

Our business is local, there are many players, competition is fierce and market developments are rapid. Those who act decisively to meet the new conditions will be standing strong when the market turns around.

During the preceding year, we noted increased costs for materials. At present, these cost increases have tapered off and energy prices have begun to fall back. Access to materials has stabilised while many subcontractors are competing for bids.

Demand for our housing units remained cautious. Raised interest rates, high inflation, and increased uncertainty affected demand, primarily, but also the development of prices. Sales lead times were still long in the second quarter. With that said, we are seeing some improvement since the first quarter. Selective price reductions made home buyers more prone to act.

Germany

Germany is Bonava's largest market. There has been a shortage of housing units in Germany for many years and this topic is high on the political agenda. The offering of new housing units is low, while customers are cautious. Housing prices in large cities were impacted to a greater extent that prices outside these areas. Berlin, Cologne and Dortmund are the regions in which we are seeing the highest activity at present.

Sweden

Sweden is Bonava's second-largest market. We have an attractive breadth in our offering of housing units for investors and consumers, in or near large cities. Higher costs of living and rising interest rates have resulted in a cautious market. In Sweden, we are experiencing a sharp slowdown as regards both production starts and sales of housing units. During the second quarter, we saw more stable price levels and consumers beginning to regain confidence in the market. Despite this, the overall market volumes remain low.

Finland

The housing market in Finland is concentrated primarily to the metropolitan regions with the largest population growth and developed infrastructure: Helsinki, Tampere and Turku. The housing market in Finland has suffered greatly from rising interest rates and inflation, and customer activity is subdued.

Baltics

The markets in all three Baltic capitals are growing economies. The low quality of the existing housing stock combined with growing demand for rental housing presents opportunities to build and manage them. The favourable market conditions in the Baltic markets remain, with a low level of unemployment and a lack of supply. Prices have slowed slightly in all markets, with the demand in Riga being the most stable.

Group performance

Due to the fact that Bonava has divested its operations in intends to divest its operations in St. Petersburg, the Group's income statement is presented in accordance with IFRS 5 Non-current assets held for sale and discontinued operations. This entails recognising the result from the operations in Norway and St. Petersburg on a line income statement designated as operations to be discontinued and discontinued operations. The historical comparative figures have been restated. Assets and liabilities attributable to the operations in St. Petersburg are recognised on one line for assets and one line for liabilities in the balance sheet as of 30 June 2023. In the cash flow statement, cash flow attributable to operations to be discontinued is indicated in its own table.

APRIL-JUNE 2023

Net sales

Net sales amounted to SEK 3,586 M (3,332). The change is attributable to more housing units for consumers and investors recognised in profit, and by exchange rate fluctuations that had a positive translation effect of SEK 214 M on consolidated net sales year on year. The average price per housing unit recognised in profit amounted to SEK 3.0 M (2.9).

During the quarter, 592 housing units for consumers (794) were recognised in profit, generating net sales of SEK 2,167 M (2,618).

Net sales to investors totalled SEK 1,407 M (665), and the number of housing units recognised in profit was 611 (351).

Operating profit

Operating profit was SEK 195 M (332) and the operating margin was 5.4 per cent (10.0). The operating margin reflects a focus on cash flow, where a higher share of investor transactions with lower margins but with periodic payment plans impacted the comparison with the preceding year. In addition, measures were taken to improve future

cash flow, and risk provisions were made totalling SEK 28 M in Sweden and SEK 34 M in Germany.

Exchange rate fluctuations had a positive translation effect of SEK 13 M on operating profit compared with the year-earlier quarter.

Net financial items, profit before tax, tax and profit for the quarter Net financial items were SEK -148 M (-41), attributable to increased interest expenses due to a higher financing volume and higher base rates.

Profit before tax for the quarter was SEK 47 M (291). Tax on profit for the quarter was SEK -10 M (-83), corresponding to a tax rate of 22 per cent (28).

Profit for the period for continuing operations amounted to SEK 37 M (208).

Profit for the period for operations to be discontinued and discontinued operations totalled SEK -854 M (7), of which SEK -824 M pertained to capital losses from the divestment of the Norwegian operations. See Note 6.

Operating profit and operating margin, excluding St. Petersburg and SEK M

Group performance

JANUARY-JUNE 2023

Net sales

Net sales amounted to SEK 5,515 M (5,718), since fewer housing units for consumers were recognised in profit compared to the year-earlier period. The average price per housing unit recognised in profit amounted to SEK 3.0 M (2.9).

During the period, 984 (1,291) housing units for consumers were recognised in profit, generating net sales of SEK 3,578 M (4,281).

Net sales to investors totalled SEK 1,895 M (1,380), and the number of housing units recognised in profit was 822 (653).

Exchange rate fluctuations had a positive translation effect of SEK 301 M on consolidated net sales compared with the year-earlier period.

Operating profit

Operating profit was SEK 167 M (431) and the operating margin was 3.0 per cent (7.5). The operating margin reflects a focus on cash flow, where a higher share of investor transactions with lower margins but with periodic payment plans impacted the comparison with the preceding year. In addition, measures were taken in the second quarter of 2023 to improve future cash flow, and risk provisions were made totalling SEK 28 M in Sweden and SEK 34 M in Germany.

Exchange rate fluctuations had a positive impact of SEK 12 M on operating profit compared with the year-earlier period.

Net financial items, profit before tax, tax and profit for the period Net financial items were SEK -241 M (-76), attributable to increased interest expense due to a higher financing volume and higher base rates.

Profit before tax for the quarter was SEK -74 M (355). Tax on profit for the period was SEK 20 M (-100), corresponding to a tax rate of 26 per cent (28).

Profit for the period for continuing operations amounted to SEK -55 M (255).

Profit for the period for operations to be discontinued totalled SEK -803 M (37), of which SEK -824 M pertained to capital losses from the divestment of the Norwegian operation.

	2023	2022	2023	2022	Jul 2022	2022
	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	- Jun 2023	Jan-Dec
Net sales
Germany	1,536	1,593	2,247	2,832	7,201	7,785
Sweden	947	1,025	1,537	1,677	2,605	2,745
Finland	015	460	1,405	774	2,390	1,759
Baltics	185	251	323	333	821	832
Other operations11	2	2	3	102	766	864
Total	3,586	3,332	5,515	5,718	13,783	13,987

	2023	2022	2023	2022	Jul 2022	2022
	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	- Jun 2023	Jan-Dec
Operating profit before items affecting comparability21
Germany	75	229	85	335	654	904
Sweden	58	113	103	136	-87	-54
Finland	97	26	64	40	113	88
Baltics	14	35	24	38	04	108
Other operations™	-49	-71	-110	-118	-180	-188
Total	195	332	167	431	594	858

1) Other operations consist of the Parent Company, Group adjustments, eliminations and the Danish operations.

2 tems affecting comparability for fully ear 2022 pertain to costs of SEK 56 M resulting from organisational changes desided on in Sweden, Gentral divisions

Financial position and cash flow

TOTAL ASSETS 1)

Total assets were SEK 24,910 M (26,632). At 31 December 2022, assets totalled SEK 25,579 M. The divestment of the Norwegian operations and a lower number of ongoing housing projects reduced assets since the start of the year, while cash and cash equivalents increased. Exchange-rate fluctuations increased assets by SEK 1.1 Bn compared with 31 December 2022.

NET DERT1)

Net debt amounted to SEK 6,631 M (5,881). At 31 December 2022, net debt totalled SEK 7,259 M. The increase compared to the yearearlier period was attributable primarily to higher payments for land under previously signed agreements. As of 31 March, net debt totalled SEK 8,094 M, and the reduction during the quarter was due primarily to the divestment of Bonava Norway. Exchange rate fluctuations increased net debt by SEK 44 M compared with 31 December 2022.

CAPITAL EMPLOYED13

Capital employed amounted to SEK 15,438 M (15,168). At 31 December 2022, capital employed amounted to SEK 15,568 M. Capital employed decreased as a result of the divestment of the Norwegian operations but increased as a result of continued payments for land under previously signed agreements. Exchange-rate fluctuations increased capital employed by SEK 600 M compared with 31 December 2022.

EQUITY/ASSETS AND DEBT/EQUITY RATIO1)

The equity/assets ratio was 29.2 per cent (33.0). As of 31 March 2023, the equity/assets ratio was 30.1 per cent. The net debt/equity ratio totalled 0.9x (1.0x as per 31 March 2023).

COVENANTS IN LOAN AGREEMENTS

The terms in bond and loan agreements are linked to two covenants. As of 30 June, both were fulfilled. According to the calculation method in the loan agreements, the equity/assets ratio was 29.4 per cent. According to the calculation method in the loan agreements, the interest coverage ratio was 4.0x. Refer also to Note 3. In accordance with the agreement with the creditors, these have been adjusted for the divestment of the operations in Norway.

CASH FLOW APRIL-JUNE 2023

Cash flow before financing was SEK 543 M (-551). Negative earnings, adjusted for impairments of projects in Germany, the sale of the Norwegian operations and a larger translation difference year-on-year, as well as higher tax payments than previous year, generated a cash flow from operating activities before changes in working capital of SEK -345 M (82). Cash flow from changes in working capital amounted to SEK 218 M (-631). Sales of housing projects totalled SEK 3,191 M (3,046), a slight increase compared with the year-earlier period driven primarily by Finland. Investments in housing projects decreased in all segments to a total of SEK 2,395 M (-3,748). Investments in building rights were lower than in the preceding year. Cash flow from other changes in working capital was SEK -579 M (71), which was primarily due to lower interest-free liabilities in Germany. The divestment of the Norwegian operations generated a positive cash flow of SEK 737 M, whereof SEK 765 M was cash received at closing, while SEK -28 M was divested cash and cash equivalents in the Norwegian operations.

CASH FLOW JANUARY-JUNE 2023

Cash flow before financing was SEK -420 M (-2.336). Negative earnings, adjusted for the dissolution of risk provisions, larger translation difference and higher tax payments than prior year, generated a cash flow from operating activities before changes in working capital of SEK -461 M (64). Cash flow from changes in working capital amounted to SEK -569 M (-2,392). Sales of housing projects amounted to SEK 5,384 M (5,373). Investments in housing projects decreased in all segments to a total of SEK -5,245 M (-8,093). Investments in building rights were lower than in the preceding year. Cash flow from other changes in working capital was SEK -708 M (328), which was primarily due to lower cash flows from interest-free liabilities in Germany. The divestment of the Norwegian operations generated a positive cash flow of SEK 737 M, whereof SEK 765 M was cash received at closing, while SEK -28 M was divested cash and cash equivalents in the Norwegian operations.

1) Including operations to be discontinued (St. Petersburg) and including discontinued operations (Norway) up until the date of divestment, 30 June 2023.

= Net debt in Swedish tenant-owners associations and Finnish housing companies

Completion and delivery of housing units

RECOGNITION OF HOUSING PROJECTS

Bonava's business model and the contract structure of the housing projects mean that when production is completed and customers have taken possession of the housing units, the sales value of these units is recognised under Net sales in the income statement. This applies to housing units for both consumers and investors.

The carrying amount of completed but not yet handed over housing units is transferred from Ongoing housing projects to Completed housing units in the balance sheet.

Completed housing units from earlier periods are added to net sales in the quarter when delivery to the customers occurs.

In our Build-to-Manage (B2M) model, we are building rental apartments intended for own management. This entails constructing, retaining, and managing for a period instead of divesting immediately. Investments in such projects have been made in Sweden since the third quarter of 2022 and in the Baltics since the end of 2021. In Bonava Baltics, rentals to tenants are expected to begin in the third quarter of 2023. After the end of the period, the development of the B2M project in Sweden was temporarily halted, and completion has thus been postponed. We are evaluating alternatives regarding continued development or divestment.

For more information on Bonava's value chain, refer to our Annual Report, which is available at bonava.com.

SOLD COMPLETED HOUSING UNITS NOT RECOGNISED IN PROFIT AT END OF QUARTER

The number of sold completed housing units not recognised in profit at the end of the quarter was 47 (35). As of 31 March 2023, this total was 30.

UNSOLD COMPLETED HOUSING UNITS AT END OF QUARTER The number of unsold completed housing units at the end of the quarter was 285 (80). The increase was primarily attributable to

Estimated completions of ongoing projects per quarter Consumers Number 1,200 1.090 1,000 800 630 600 350 390 400 270 210 190 70 200 Q3:23 Q4:23 Q1:24 Q2:24 Q3:24 Q4:24 Q1:25 Later 130 70 -80 -15 33 -70 52 -37 AQ1 47 Starts Q2 35 7 110 18 Sweden Finland Germany ■ Baltics Sold

Germany, Finland, and the Baltics. As of 31 March 2023, this figure was 249, 70 of which were sold during the quarter while, 106 were added.

COMPLETED HOUSING UNITS DURING THE QUARTER

At the end of the preceding quarter, Bonava estimated that approximately 730 consumer housing units would be completed in the second quarter. A total of 645 housing units were completed. The decrease is due primarily to one project in Germany and one in the Baltics being completed one quarter later than estimated.

During the quarter, it was estimated that 550 housing units for investors would be completed, while 611 were completed. The increase is attributable to one project in Finland being completed ahead of schedule.

HOUSING UNITS RECOGNISED IN PROFIT DURING THE OUARTER

The number of housing units for consumers recognised in profit during the quarter was 592 (794). The majority of these were completed during the quarter.

During the quarter, 611 (351) housing units for investors were recognised in profit. All were completed during the quarter.

VALUE OF HOUSING UNITS SOLD NOT YET RECOGNISED IN PROFIT

The value of sold housing units in production and completed housing units sold but not vet recognised in profit at the end of the quarter was SEK 7,282 M (11,068) for consumers and SEK 4,165 M (6,595) for investors.

1) Sweden pertains partly to B2M and the Baltic region pertains to B2M; refer to pages 10 and 13

The diagrams illustrate the estimated completion dates of projects that have been started for housing units for consumers and investors, respectively. The number of housing units have been rounded off since they are estimates of the point in time of completion, and shifts between quarters are common.

The curves illustrate the percentage of units sold at 30 June 2023. The diagrams can give an indication of future net sales, provided that the housing units are also delivered to the end customers. For those bars that show unsold housing units, both sale and completion need to occur before they are recognised in profit.

The lines under the diagram clarify the changes that have occurred since the assessment presented in the interim report for the most

recent quarter. One change during the second quarter was that the development of a B2M project in Sweden was temporarily halted, and completion has thus been postponed.

The top line shows an amended estimate of when the units are expected to be completed, compared with the latest published interim report. Changes such as the date for receiving building permits, disruptions in the logistics and production chain or other factors could positively or negatively impact the estimated time of completion.

The bottom line shows the expected time of completion for the units for which production has started during the quarter. These units thus entail an increase in the total number of units included in the graph.

Building rights

In light of the weaker market, we have been restrictive regarding new investments in land since mid-2022. We are developing existing building rights in our portfolio in order to have land ready for building, and can quickly start projects up once demand turns around. Prioritising cash flow also means that we are reviewing our land bank. We are evaluating where we have the greatest potential to create profitable projects, and are divesting land and withdrawing from option contracts where we do not see the same potential.

Bonava recognises building rights at the cost incurred. No surplus value from market valuation was included in the reported figures.

The total number of building rights at the end of the quarter amounted to 29,400 (29,700). Compared with the start of the year, the number of building rights is unchanged. The number of building rights in the Baltics and Germany has decreased. The number of building rights in Sweden increased, whereas in Finland they remained unchanged.

Building rights

On/Off balance sheet

	2023 30 Jun	2022 30 Jun	2022 31 Dec
Number of building rights
Germany	9,700	10,100	9,800
Sweden	8,900	8,300	8,700
Finland	3,800	3,800	3,400
Baltics	7,000	7,500	7,500
Total	29,400	29,700	29,400
Of which, off-balance sheet Germany Sweden	1,900 3,300	3,300 2,700	3,100 2,900
Finland	2,500	2,300	2,100
Baltics	3,000	3,200	3,250
Total	10,700	11,500	11,350

Number of building rights per 30 June 2023, excluding St. Petersburg and Norway

Bonava recognises some of its building rights off the balance sheet, such as land that Bonava controls through options or conditional agreements, but where we do not yet have control of land. The number of building rights off the balance sheet at the end of the quarter amounted to 10,700 (11,500).

The diagram below illustrates the development of the building rights portfolio during the last year and its composition in the second quarter of 2023. Properties held for future development amounted to SEK 9,309 M (9,360) at the end of the quarter. For continuing operations, property held for future development totalled SEK 7,289 M in the yearearlier quarter. The increase is due in part to attractive building rights in Germany having been included in the balance sheet once the conditions in previously signed agreements have been met, and in part to currency effects.

Distribution of building rights, excluding St. Petersburg and Norway

Interim report January-June 2023