INVESTOR PRESENTATION - Nordnet

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INVESTOR PRESENTATIONSTOCKHOLM – INVESTMENT GRADE COUNTERPART - LONG WAULT

Estimated dividend of 7.0%June 2021

Disclaimer and important information

Strictly confidential

This investor presentation together with its enclosures and appendices (collectively the "Presentation") has been produced by Aquaticus Real Estate AB (publ) reg. no. 559280-0782, a special purposes public limited liability company(the "Company", and together with its direct and indirect subsidiaries from time to time, the "Group"), with assistance from Arctic Securities AS (the "Manager" or "Arctic Securities"), to provide information solely for use as apresentation to investors held in connection with the contemplated offering of equity (the "Shares") by the Company as described herein (the "Transaction").

Risk

This Presentation is based on information received from the vendor, AMF Pensionsförsäkring AB, reg. no. 502033–2259, (the "Vendor") and the Vendor's representatives, as well as information obtained by the Manager, and limitedlegal, financial and technical due diligence investigations. This Presentation speaks as of the date on the cover page. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipientsshall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. It is emphasised that investments in the Company, the Shares and/or real estate projects arealways associated with and subject to great risks. All investors must be aware and acknowledge the possibility that such investment may result in the loss of all or part of the invested amount. An investment in the Company issuitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of the investment. Any investors that either cannot, or does not want to assume such riskshould refrain from acquiring shares of the Company, see risk factors associated with investment in the Company on page 46 (Risk factors).Confidentiality

Confidentiality

This Presentation and all information contained herein, including information relating to the existence of the Transaction, is strictly confidential and shall be treated as confidential information and may not be reproduced orredistributed in whole or in part to any other person. By attending a meeting where this Presentation is presented or by reading this Presentation, you agree to be bound by the terms, conditions and limitations set out herein.

No legal, credit, business, investment or tax advice

An investment in the Shares involves a high level of risk. Several factors could cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievementsthat may be expressed or implied by statements and information in this Presentation, including, among others, risk or uncertainties associated with the Group's business, segments, developments, growth, management, financing andmarket acceptance, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchangerate and interest rates and other factors. The Company does not intend, and does not assume any obligation, to update or correct the information included in this Presentation. There may also be a limited secondary market for theShares which may result in a substantial liquidity risk. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in thisPresentation.

By attending a meeting where this Presentation is presented or by reading this Presentation, you acknowledge that you will be solely responsible for and rely on your own assessment of the market and the market position of theGroup and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Group, its business and the Shares and other securities. The content of thisPresentation is not to be construed as legal, credit, business, investment or tax advice. Each recipient should consult with its own legal, credit, business, investment and tax advisers to receive legal, credit, business, investment andtax advice. Each potential investor in the Shares must determine the suitability of that investment in light of its own circumstances. In particular, each potential investor should:

a) have sufficient knowledge and experience to make a meaningful evaluation of the Shares, the merits and risks of investing in the Shares and the information contained or incorporated by reference in this Presentation or anyapplicable supplement;

b) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the Shares and the impact other shares will have on its overall investment portfolio;

c) have sufficient financial resources and liquidity to bear all of the risks of an investment in the Shares; and

d) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic, interest rate and other factors that may affect its investment and its ability to bear the relevant risks.

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General restrictions on distribution

The offer is not an offer to the general public in Sweden or anywhere else, and does not entail a duty pursuant to the Swedish Financial Instruments Trading Act (Sw. lag (1991:980) om handel med finansiella instrument) to preparea prospectus. This Presentation is not approved by or registered with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen).

THIS DOCUMENT IS FOR THE USE OF THE RECIPIENT ONLY AND SHOULD NOT BE COPIED OR DISTRIBUTED TO ANY OTHER PERSON OR ENTITY. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY ORINDIRECTLY, IN OR INTO, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA, NOR IN ANY OTHER JURISDICTION IF SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAWIN ANY SUCH JURISDICTION OR OTHERWISE.

The Shares to be issued neither can, nor will, be marketed in jurisdictions in which this would be unlawful or subject to any requirement for registration or government approval.

Distribution of this Presentation, as well as offering the Shares for sale, or selling the Shares, may be subject to restrictions in certain jurisdictions. It is a requirement on the part of the Company and the Manager that any personwho comes into possession of this Presentation shall familiarise him- or herself, and comply, with such restrictions. This Presentation shall not be used with a view to making, or in connection with making, any offer or solicitationmade by persons in a jurisdiction under circumstances implying that such offer or solicitation is not permitted or not lawful. This Presentation is subject to Swedish law, and any dispute arising out of or in connection with thisPresentation is subject to the exclusive jurisdiction of Swedish courts.

NOTICE TO INVESTORS IN THE UNITED STATES

The offering consists of: (i) a private placement to (a) institutional and professional investors in Sweden, (b) investors outside Sweden and the United States of America (the "U.S." or the "United States"), subject to applicableexemptions from the prospectus requirements, and (c) "qualified institutional buyers" ("QIBs") in the United States as defined in, and in reliance on, Rule 144A ("Rule 144A") under the U.S. Securities Act of 1933, as amended (the"U.S. Securities Act"), and (ii) an offer that is not to the general public in Sweden or anywhere else, and does not entail a duty pursuant to the Swedish Financial Instruments Trading Act to prepare a prospectus. All offers and salesoutside the United States will be made in compliance with Regulation S under the U.S. Securities Act ("Regulation S").

Because of the following restrictions, prospective investors are advised to consult legal counsel prior to making any offer, resale, pledge or other transfer of the Shares. The Shares have not been and will not be registered under theU.S. Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States and may not be offered, sold, pledged or otherwise transferred within the United States except pursuant to anexemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state securities laws. Accordingly, the Shares will not be offered or sold within theUnited States, except in reliance on the exemption from the registration requirements of the U.S. Securities Act under Rule 144A. The Shares will be offered outside the United States in compliance with Regulation S. Prospectiveinvestors are hereby notified that sellers of Shares may be relying on the exemption from the provisions of Section 5 of the U.S. Securities Act provided by Rule 144A under the U.S. Securities Act. See "Section A United States" below.

Any Shares offered or sold in the United States will be subject to certain transfer restrictions as set forth under Section A: United States below.

The securities offered hereby have not been recommended by any United States federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not passed upon the merits of the PrivatePlacement or confirmed the accuracy or determined the adequacy of this Presentation. Any representation to the contrary is a criminal offense under the laws of the United States.

In the United States, this Presentation is being furnished on a confidential basis solely for the purposes of enabling a prospective investor to consider purchasing the particular securities described herein. The information containedin this Presentation has been provided by the Company and other sources identified herein. Distribution of this Presentation to any person other than the prospective investor specified by the Manager or their representatives, andthose persons, if any, retained to advise such prospective investor with respect thereto, is unauthorised and any disclosure of its contents, without prior written consent of the Company, is prohibited. This Presentation is personal toeach prospective investor and does not constitute an offer to any other person or to the public generally to purchase Shares or subscribe for or otherwise acquire any Shares.

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Section A: United States

The Shares in the offer have not been and will not be registered under the U.S. Securities Act, and may not be offered or sold except: (i) within the United States to QIBs in reliance on Rule 144A; or (ii) to certain persons in offshoretransactions compliance with Regulation S under the U.S. Securities Act, and in accordance with any applicable securities laws of any state or territory of the United States or any other jurisdiction. Accordingly, the Manager hasrepresented and agreed that it has not offered or sold, and will not offer or sell, any of the Shares as part of its allocation at any time other than to QIBs in the United States in accordance with Rule 144A or outside of the UnitedStates in compliance with Rule 903 of Regulation S. Transfer of the Shares will be restricted and each investor of the Shares in the United States will be required to make certain acknowledgements, representations and agreements,as described under Section B: United States below.

Until 40 days after the commencement of the Private Placement, an offer or sale of Shares within the United States by a dealer, whether or not participating in the Private Placement, may violate the registration requirements ofthe U.S. Securities Act if such offer or sale is made otherwise than in accordance with Rule 144A of the U.S. Securities Act and in connection with any applicable state securities laws.

Section B: United States

The Shares have not been and will not be registered under the U.S. Securities Act and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registrationrequirements of the U.S. Securities Act and applicable state securities laws. Terms defined in Rule 144A or Regulation S shall have the same meaning when used in this section.

Each investor in the Shares outside the United States pursuant to Regulation S will be deemed to have acknowledged, represented and agreed that it has received a copy of this Presentation and such other information as it deemsnecessary to make an informed decision and that:

• The investor is authorised to consummate the purchase of the Shares in compliance with all applicable laws and regulations.

• The investor acknowledges that the Shares have not been and will not be registered under the U.S. Securities Act, or with any securities regulatory authority or any state of the United States, and are subject to significantrestrictions on transfer.

• The investor is, and the person, if any, for whose account or benefit the investor is acquiring the Shares was located outside the United States at the time the buy order for the Shares was originated and continues to be locatedoutside the United States and has not purchased the Shares for the benefit of any person in the United States or entered into any arrangement for the transfer of the Shares to any person in the United States.

• The investor is not an affiliate of the Company or a person acting on behalf of such affiliate, and is not in the business of buying and selling securities or, if it is in such business, it did not acquire the Shares from the Companyor an affiliate thereof in the initial distribution of such Shares.

• The investor is aware of the restrictions on the offer and sale of the Shares pursuant to Regulation S described in this Presentation.

• The Shares have not been offered to it by means of any "directed selling efforts" as defined in Regulation S.

• The Company shall not recognise any offer, sale, pledge or other transfer of the Shares made other than in compliance with the above restrictions.

• The investor acknowledges that the Company, the previous owners, the Manager and their respective advisers will rely upon the truth and accuracy of the foregoing acknowledgements, representations and agreements.

• Each investor of the Shares within the United States pursuant to Rule 144A will be deemed to have acknowledged, represented and agreed that it has received a copy of this Information Memorandum and such other informationas it deems necessary to make an informed investment decision and that:

• The investor (i) is a QIB (as defined in Rule 144A), (ii) is aware that the sale to it is being made in reliance on Rule 144A and (iii) is acquiring such Shares for its own account or for the account of a QIB, in each case forinvestment and not with a view to any resale or distribution to the Shares, as the case may be.

• The investor is aware that the Shares are being offered in the United States in a transaction not involving any public offering in the United States within the meaning of the U.S. Securities Act.

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• If, in the future, the investor decides to offer, resell, pledge or otherwise transfer such Shares, as the case may be, such Shares may be offered, sold, pledged or otherwise transferred only (i) to a person whom the beneficialowner and / or any person acting on its behalf reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A, (ii) in accordance with Regulation S, (iii) in accordance with Rule 144 (if available), (iv)pursuant to any other exemption from the registration requirements of the U.S. Securities Act, subject to the receipt by the Company of an opinion of counsel or such other evidence that the Company may reasonably requirethat such sale or transfer is in compliance with the U.S. Securities Act or (v) pursuant to an effective registration statement under the U.S. Securities Act, in each case in accordance with any applicable securities laws of anystate or territory of the United States or any other jurisdiction.

• The Shares are "restricted securities" within the meaning of Rule 144(a) (3) and no representation is made as to the availability of the exemption provided by Rule 144 for resales of any Shares, as the case may be.

• The investor acknowledges that the Company, previous owners, the Manager and their respective advisers will rely upon the truth and accuracy of the foregoing acknowledgements, representations and agreements.

Restrictions in the United Kingdom

In the event that this Presentation is distributed in the United Kingdom, it shall be directed only at persons who are either (a) "investment professionals" for the purposes of Article 19(5) of the UK Financial Services and Markets Act2000 (Financial Promotion) Order 2005, as amended (the "Order"), (b) high net worth companies, unincorporated associations and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) ofthe Order, or (c) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Shares mayotherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). Any investment or investment activity to which this Presentation relates will be available onlyto Relevant Persons and will be engaged in only with Relevant Persons. This Presentation is not a prospectus for the purposes of Section 85(1) of the UK Financial Services and Markets Act 2000, as amended. Accordingly, thisPresentation has not been approved as a prospectus by the Financial Conduct Authority (the "FCA") under Section 87A of the Financial Services and Markets Act 2000 and has not been filed with the FCA pursuant to the UK ProspectusRules nor has it been approved by a person authorised under the Financial Services and Markets Act 2000.

Conflict of interest

Potential investors are hereby informed that all the current interim board members of the Company and its subsidiaries are employees of the Manager as at the date of this Presentation. The Company is and will be owned by theManager until the implementation of the contemplated Transaction in the Company and the cancellation of the Manager’s shares of the Company. The employees of the Manager involved in the Transaction have contributed, or willcontribute, inter alia, to the negotiation of the Share Purchase Agreement acceptance with the Vendor, the terms of the Debt Facility, the Business Management Agreement with the Business Manager (being an affiliate to theManager), the Asset Management Agreement and the Mandate Agreement (each as defined below) for the Transaction as well as for future financial services.

The Manager has incurred, and will incur, costs on behalf of the Company and the Group in relation to the Transaction (such as for example costs relating to legal and technical assistance). The Manager will have to cover these costsin the event that the Transaction is not completed. The Manager has identified that the foregoing may represent a conflict of interest, and even if such conflict of interests is deemed to be limited, has addressed this by monitoringthe contemplated Transaction and the work conducted relating thereto with a view to address and mitigate potential conflicts of interest, focusing on the best interests of the Company and the Group.

All inquiries relating to this Presentation should be directed to the Manager. No other person has been authorised to give any information about, or make any representation on behalf of, the Company in connection with the subject-matter of this Presentation and, if given or made, such other information or representation must not be relied upon as having been authorised by the Company or the Manager.

To the extent that the Manager collaborates with other subsidiaries to Arctic Securities AS in connection with the placement of the Shares of the Company, these will jointly with the Manager be considered the "Manager" forpurposes of this Presentation. Such collaboration with other companies in the Arctic Group shall not entitle the Manager to any additional fee.

Target market

Solely for the purpose of the manufacturer (as used herein, "Manufacturer" refers to Arctic Securities AS, filial Sverige's product approval process), the target market assessment in respect of the Shares has led to the conclusion that:(i) the target market for the Shares is eligible counterparties, professional clients and retail clients, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Shares to eligiblecounterparties, professional clients and retail clients are appropriate. Negative Target Market: An investment in the Company´s Shares are not compatible with investors looking for full capital protection or full payment of theamount invested or having no risk tolerance, or investor´s requiring a fully guaranteed income or fully predictable return profile.

Any person subsequently offering, selling or recommending the Shares (a "Distributor") should take into consideration the Manufacturers' target market assessment; however, a distributor subject to MiFID II is responsible forundertaking its own target market assessment in respect of the Shares (by either adopting or refining the Manufacturers' target market assessment) and determining appropriate distribution channels. For the avoidance of doubt, thetarget market assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any otheraction whatsoever with respect to the Shares of the Company.

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Placement Fee

The Manager will be paid a fee by the Company in respect of the placement of the Transaction.

Forward looking statements

Certain information contained in this Presentation, including any information on the Group's plans or future financial or operating performance and other statements that express the Group's management's expectations or estimatesof future performance, constitute forward-looking statements (when used in this document, the words "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Group or its management, are intendedto identify forward-looking statements). Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic andcompetitive uncertainties. The Group cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Group to bematerially different from the Group's estimated future results, performance or achievements expressed or implied by those forward-looking statements.

Claims and legal disputes

Claims or legal action may in the future be made or initiated against the Group which may have significant unfavourable effects on the Group's financial position, performance and market position or on the pricing of the Shares.

Governing law and jurisdiction

This Presentation is subject to Swedish law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Swedish courts.

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Table of contents

Investment summary

The Property

Location

Xylem

Water technology market

Financials

Structure, management, and investment terms

Appendix

8


Stockholm | S&P 500 counterpart | Est. 7.00%

dividend | c. eight years WAULT

Investment summary

Location

Investment summary

Source: Information from the Seller and Xylem Inc. fillings

Notes: (1) One year’s parent guarantee from Xylem Inc. (2) First dividend is expected in Q1 2022

Green modern R&D / office property

▪ The property Sundbyberg Fröfjärden 3 (the “Property”) is a highly modern green

R&D and office building erected in 2003 by Skanska

▪ The building on the Property is certified with “Miljöbyggnad Silver” in

accordance with Sweden Green Building Council's certification system

Investment grade counterpart

▪ The Property houses Xylem Water Solutions Global Services AB (the “Tenant”),

which is part of Xylem Inc. group (“Xylem”) that is a market-leading water

infrastructure company included in the S&P 500 index

▪ Xylem is well-positioned and in large favor of increased environmental

awareness, capitalizing on innovating new green water technology solutions to

be used in decades to come

Robust indirect customers

▪ Xylem’s customer base is mainly states/countries and large corporations,

creating solid underlying fundamentals for stable long term cash flows, resilient

to economical shifts

Attractive risk adjusted return

▪ WAULT of ~eight years, with a parent company guarantee from Xylem Inc.(1)

▪ Estimated annual dividend of 7.0%(2)

▪ Favourable lending terms, LTV 60%, three years tenor

Sundbyberg Fröfjärden 3

Type R&D / Office

Location Stockholm (Sundbyberg)

Gross property value, SEKm 740 (~42,800)

Construction year 2003

Number of freehold properties 1

Tenant Xylem Water Solutions Global Services AB

Total area, m2 ~17,300

Rental income, SEKm (SEK/m2) ~42.1 (~2,440)

NOI, SEKm (SEK/m2) ~36.8 /(~2,130)

WAULT, years ~8

NOI yield, % 5.0

Annual dividend, % 7.0

BBB

BBB

Baa2

~12 min by subway

~15 min by car

~25 min by bike

Times to Stockholm CBD

Green building

The

Pro

pert

y

T

Stockholm

CBDEst dividend

~7.00%(2)

E4E18

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Key project information

Transaction summary

Project Aquaticus Real Estate AB (publ.)

Type R&D / Office

Location Stockholm (Sundbyberg)

Gross property value, SEKm 740

Gross property value, SEK/m2 ~42,800

Construction year 2003

Number of freehold properties 1

Tenant Xylem Water Solutions Global Services AB

Total area, m2 ~17,300

Site area, m2 ~7,100

Rental income, SEKm (SEK/m2) ~42.1 (~2,440)

NOI, SEKm (SEK/m2) ~36.8 /(~2,130)

WAULT, years ~8

CPI adjustment, % 100

LTV, % 60

Amortization, % 0

All-in margin, % ~2.35

NOI yield, % 5.0

Annual dividend, % 7.0

Equity Issue, SEKm 308

Manager Arctic Securities

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix

11


Modern R&D / office property

The Property

Off

ice

R&

D

Technical description

Building year 2003

Foundation Concrete

Main structure Concrete slab and floor structure

Facade Terrazzo elements

RoofSedum roof with rubber sheeting and some

parts with metal sheeting

Windows Triple-glazed in aluminum frame

Ventilation ESX (Sw. FTX)

Heating District heating

CoolingDistrict cooling with forced air-cooled

baffles

Electricity Power current

SolarSolar cells on the roof generating

electricity for the tenant

Lighting LED lighting fittings

UPS Yes, owned by tenant

Data Entire building, fiber

Alarm Fire, evacuation and burglar

Sprinkler Entire building

Lifts3 passenger lifts, 1 goods lift and 1

handicap lift

R&D related areas 40%

Office related areas60%

R&D related areas

Office related areas

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Highly modern office property Area distribution(1)

The Property

Section illustration

Note: (1) R&D areas include: Lab/Workshop (29%), Storage (6%), and Mezzanine office (5%). Office areas include: Office (43%), Conference/kitchen area (11%), and

Reception (6%)

General information

▪ The Property was constructed in 2003 by Skanska and has since been let

to the Tenant

- The Property consists of a low-rise and a high-rise part, ranging from

one to six floors above ground

- Garage with 163 parking spaces

- Total area is 17,296 m2

▪ The high-rise part mainly contains offices spaces (whereupon many

office-workers are deeply involved in R&D activities)

▪ The low-rise part mainly comprises the R&D department

Green Certificate

▪ The building on the Property is certified with “Miljöbyggnad Silver” in

accordance with Sweden Green Building Council's certification system…

- …with e.g. solar panels producing electricity for the Tenant's

operations

Highly flexible floor layout

▪ Generic building allowing for flexible floor layouts, multi-let conversion

and alternative use in the low-rise part

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Modern R&D / Office property

The Property – pictures

Sola

r panels

14


Modern R&D / Office property

The Property – pictures, cont’d


Highly efficient modern floor layouts(1)

The Property – floor plans

Note: (1) Only including lettable areas (parking areas excluded), totaling 16,881 m2

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Floor 1Garage including 163 parking spaces as well as storages and technical areas. Lettable area of 948 m2

Floor 2Laboratory and workshops. Lettable area of 5,658 m2

Floor 2bEntrance, reception, showroom, office and education premises, and cargo handling areas. Lettable area of 1,494 m2

Floor 3Office premises, conference facilities, dining area and lounge. Lettable area of 1,852 m2

Floor 4–7Office premises. Each floor has open floor plans with kitchenettes and restrooms. The lettable area on floor 4–6 is 1,788 m2 and floor 7 is 1,565 m2, totalling 6,929 m2

Floor 8

Other areas

25,000 30,000 35,000 40,000 45,000

3.75% 341 305 269 233 197

4.00% 308 272 236 200 164

4.25% 279 243 207 171 135

4.50% 254 218 182 146 110

4.75% 231 195 159 123 87

5.00% 210 174 138 102 66

5.25% 192 156 120 84 48

Building rights

▪ The Property is regulated by the zoning plan ‘Detaljplan för kv Fröfjärden i

Sundbyberg stad’, Act No. 0183-P99/0927 (the “Zoning Plan”). According to the

Zoning Plan, the Property shall be used for office purposes and industrial

operations that do not cause inconvenience to the surrounding areas

▪ The zoning plan amendment from 2002 encompasses the entire Property and

provides for two separate high-rise buildings, ranging from one to six floors

above ground, to be constructed onto the Property. Currently, the Property has

an unused building right for additional office or industrial premises through the

extension of the low-rise building on the Property.

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Inherent value utilized by new developments

Significant value-creation potential

Simplified drawings

Notes: (1) Assumed four floors, 1,800 m2 each (2) By Arctic estimated figures, not verified by external parts

Development profit, SEKm

Yie

ld

Total development cost, SEK/m2

Main assumptions

Rental income, SEK/m2 3,000

Cost, SEK/m2 289

NOI, SEK/m2 2,711

New development area, m2(1) 7,200

Potential add-on

Potential add-on

SEK 100-220m in development profit(2)

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Epicentre of green inventions

The Property – Xylem’s most significant location for water

infrastructure R&D

Xylem’s occupations(1)

Source: Xylem

Note: (1): Annual report 2020: Xylem’s most significant locations by segment

▪ Xylem occupies approx. 1.1 million m2, in more than 50 countries and

375 locations

▪ The Property comprises Xylem’s most significant facility for its water

infrastructure Research and Development activities

▪ Whereupon Emmaboda is amongst Xylem’s largest manufacturing plants,

totaling approx. 111,000 m2…

▪ …creating significant cost and infrastructure synergies for efficient

operations

▪ Xylem’s Swedish operations employs approx. 2,000 employees

12%Swedish operations

Of total employees worldwide

State or Country Principal Business Activity Approx. m2

Water Infrastructure

Emmaboda Sweden Administration and Manufacturing 111,000

Stockholm Sweden Administration and Research & Development 17,000

Bridgeport NJ Administration and Manufacturing 13,000

Shenyang China Manufacturing 12,000

Yellow Springs OH Administration and Manufacturing 10,000

Quenington United Kingdom Manufacturing 8,000

Applied Water

Morton Grove IL Administration and Manufacturing 49,000

Montecchio Italy Administration and Manufacturing 35,000

Nanjing China Manufacturing 34,000

Auburn NY Manufacturing 25,000

Stockerau Austria Administration 22,000

Strzelin Poland Manufacturing 17,000

Cheektowaga NY Manufacturing 14,000

Vadodara India Manufacturing and Research & Development 12,000

Measurement & Control Solutions

Ludwigshafen Germany Manufacturing 30,000

Texarkana AR Manufacturing 24,000

Uniontown PA Manufacturing 22,000

DuBois PA Manufacturing 18,000

Durham NC Administration and Research & Development 16,000

DuBois PA Manufacturing 13,000

Regional Locations

Dubai United Arab Emirates Manufacturing 13,000

Nottinghamshire United Kingdom Sales Office 13,000

Nanterre France Sales Office 13,000

Langenhagen Germany Sales Office 12,000

Corporate Headquarters

Rye Brook NY Administration 6,000

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix


Expansive region

Micro location – General overview

Sto

ckholm

inner

cit

y

Sundbyberg

centr

um

The P

ropert

y

770 apartments,

office and preschool

construction start in

2023

Easy access to international

highways E4 and E18

~12 min by subway

~15 min by car

~25 min by bike

Times to Stockholm CBD

The

Pro

pert

y

Stockholm

CBD

E4 E18

T

T

19

JJT

T

T T

20


Robust property market with solid underlying

fundamentals

Location – Stockholm “Capital of Scandinavia”

Office yield – main locations

Transaction volume per sector - Sweden

Sources: Cushman & Wakefield research report, Savills Market Outlook, Springer

Overview

▪ The Stockholm region is one of Europe's fastest growing metropolitan regions.

More than 2.3 million people live in the region today

▪ By 2050, the Stockholm region is expected to have 3.4 million people, a growth

of over 50 percent

Property market

▪ Despite the outbreak of Covid-19, office yields have remained resilient to shifts,

and has since 2019 keep on flat and rent levels have remained stable

▪ Overall, the Swedish real estate market performed well in 2020, despite the

pandemic. In the office sector, vacancy levels continue to remain low (below

5%) in Stockholm CBD and signed rental agreements are still 30–40% up compared

with three years ago despite higher discount levels (~10-15%)

▪ Office transaction volume saw a decrease in 2020 compared to 2019, however,

looking at its five year average the volume was somewhat on par. Transaction

market 2021 has started with a positive sentiment within the office sector

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Stockholm CBD Gothenburg CBD Uppsala Inner City

Stockholm Decentralised Malmo CBD

0

50 000

100 000

150 000

200 000

250 000

2015 2016 2017 2018 2019 2020

Healthcare Industrial Mixed use Office Residential Retail Other

SEKm

0%

3%

6%

9%

12%

15%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Vacancy - Stockholm CBD

Falling vacancy

21


Market has fared well despite the pandemic

Location - Stockholm office market snapshot

Office properties H2 2020(2)

CBD Rest of

Inner City

Adjacent

Suburbs

Kista Solna/

Sundbyberg

The

Property

Vacancy

rate, %4.4 4.8 6.5 20.5 6.8 0.0(3)

Prime

rent

(SEK/m2)

7,500 5,100 3,400 2,400 3,300 2,350

Prime

yield, %3.25 3.75 4.00 5.25 3.75 5.00

Sources: JLL, Savills, CBRE, Cushman & Wakefield Office Snapshot Sweden Q1 2021, Previa (September) 2020

Notes: (1) Savills (2) JLL Nordic Outlook Spring 2021 (3) Including by Arctic assessed lettable area, 16,881 m2

- Low vacancy levels and the rebound of the

economy are expected to support a stabilisation

0%

5%

10%

15%

20%

25%

30%

35%

Never 1/2 daysa month

1 day aweek

2 days aweek

3 days aweek

4 days aweek

Full time

Pre-lockdown

Post-lockdown preference

Still a necessity

▪ 89% of office-working employers believe that the office space will still be a

necessity after the pandemic

▪ The office plays a central role for people's mental health, significantly for

younger people (18-24 years)

- Socializing aspects has a large impact on people’s wellbeing; total sick days

due to psychosocial disorders where up c. 340% in the autumn of 2020

compared to 2019

Location

▪ The preference of CBD-located offices has been reduced, with increased focus

on mobility, employee safety and designed workplaces

- The movement of localizing out of CBD-areas could lead to more localized

hub & bespoke strategies for tenants…

- …where business parks is projected to be more desirable to create more

localized multi-office strategy

Office layout

▪ Increased work-from-home settings in conjunction with an office desk space

density reduction is projected to level out each other in terms of total needed

office space

▪ High-concentration tasks, such as reading and writing may be better suited from

home, whilst collaboration tasks is best facilitated in an office

Highly resilient

location with stable

metrics

short-term forecast

Days spent working remotely(1)

22


Robust property market with solid underlying

fundamentals

Location – Sundbyberg, Sweden’s fastest growing municipality

Population change

Demography

Unrivalled growth

▪ Sundbyberg has been Sweden’s fastest growing municipality over the

last decade

▪ Projected to reach 70,000 inhabitants by 2030

High income and young population

▪ Amongst the top bracket income municipalities in Sweden, with a 11%

higher average income than the Swedish average(1)

▪ Sundbyberg has its largest demography share of people in their mid 30’s,

creating a strong underlying labour/workspace demand

Expansive region

▪ Limited office space in CBD drives demand for modern office spaces in

its proximity, i.e. out-of-town areas, with good commuter

fundamentals. Infrastructure projects that connect parts of Stockholm

underpin this trend

▪ The municipality has extensive society development plans, comprising a

pipeline full of residentials, offices, schools, leisure etc. creating and

expanding urban areas to the substantial population growth

Source: Statistics Sweden SCB

Note: (1) 2018

Men Women Sweden

15 10 5 0 5 10 15

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84

90-94

100+

%

Sundbyberg municipality Sweden

-10%

0%

10%

20%

30%

40%

50%

60%

52,800 inhabitants

23


City planning 2030 | 4,000 new residential units

Micro location – Developments

Source: Sundbyberg municipality

The Property

1

2

3

4

5

6

7

8

9

10

11

12

13

1 Hallonbergen södra

Type 170 residentials

Status Zoning plan approved

2 Hallonbergen norra



3 Freden Större

Type745 residentials, office retail &

preschool

Status In construction

4 Orienteraren


Status Zoning plan

5 Hallonbergen centrum

Type 800 residentials, retail & hotel

Status Zoning plan

6 Teränglöparen


Status Zoning plan

7 Klockstämpeln


Status Zoning plan

8 Kompassen


Status Zoning plan

9 Fredsplan / Fröfjärden

Type 770 residentials, office & preschool


10 Ör Centrum

Type 200 residentials & elderly care

Status Zoning plan

11 Örskolan

Type School (F-6)

Status Zoning plan

12 BRF development

Type 130 additional units

Status Zoning plan

13 Råsta & Örvallen

TypeGeneral area development, sports,

stormwater, recreations etc

Status Initial discussions

T

Early stage

BRF

Early stage

Early stage

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix

25


Business overview

Xylem Inc. at a glance

Source: Xylem, Factset

Notes:(1) As of 2021-04-19 (2) No individual customer accounted for more than 10% of consolidated revenues in 2020, 2019 or 2018

Leading operator

▪ Xylem is a leading global water technology company offering a complete range

of advanced wastewater and water solutions

▪ Part of the S&P 500 index, Listed on NYSE with Mcap. of USD 19.6bn(1)

▪ Investment grade ratings: BBB S&P, Baa2 Moody’s, BBB Fitch

Wide customer base

▪ Serves a wide range of industries including agricultural, construction,

environmental, government agencies, industrial, public utilities, residential, and

commercial building services

- No single customer represents more than 10% of total income(2)

Business segments

▪ Operates through three key business segments: Water infrastructure, Applied

water and Measurement & control solutions (please see slide “Xylem Inc. –

Business segment overview” for further information)

Long heritage

▪ Founded in 1920, HQ in Rye Brook, NY, U.S., with +16,700 employees

USDm 2018 2019 2020 2021e 2022e 2023e

Revenue 5,207 5,249 4,876 5,188 5,458 5,696

Growth 10.6% 0.8% -7.1% 6.4% 5.2% 4.4%

EBITDA 1,013 1,023 795 887 995 1,074

Margin (%) 19.5% 19.5% 16.3% 17.1% 18.2% 18.9%

EBIT 752 766 544 639 747 814

Margin (%) 14.4% 14.6% 11.2% 12.3% 13.7% 14.3%

Net income 549 401 254 464 555 609

Margin (%) 10.5% 7.6% 5.2% 9.0% 10.2% 10.7%

BBB

Baa2

BBB

26


Xylem Inc. at a glance

Operating in an R&D driven market

Xylems total R&D investment p.a. 2017-2020

Source: Xylem, Factset

▪ Global water needs cannot be met without streamlining the water industry’s

cost structure with technologies that fundamentally change the provision and

management of water

▪ R&D is a key foundation in Xylem’s growth strategy

▪ R&D activities are initially conducted in Xylem’s technology centers, located in

conjunction to major manufacturing facilities to enable an efficient and robust

development process

▪ Despite the Covid-19 outbreak in early 2020, Xylem has kept its R&D investment

spending on normal figures, indicating its high importance

181 189 191 187

0

50

100

150

200

250

2017 2018 2019 2020

USDm Stable R&D investments,

despite the coronavirus

27


Operates through three business segments

Xylem Inc – Business segment overview

Source: Xylem

Description Key products Key brands % of revenue

▪ Focuses on the transportation and treatment of water with

pump systems; provides treatment with filtration, ultraviolet

and ozone systems; and pumping solutions to move the

wastewater and storm water to treatment facilities

▪ Also provides sales and rental of specialty dewatering pumps

and related equipment and services

▪ Served market size: USD 20bn

− Water, wastewater and storm

water pumps

− Filtration, disinfection &

treatment equipment

− Mobile dewatering equipment

▪ Serves the water usage applications sector with water pressure

boosting systems for heating, ventilation and air conditioning,

and for fire protection systems to the residential and

commercial building services markets

▪ Also offers pumps, heat exchangers and controls provide

cooling to power plants and manufacturing facilities,

circulation for food and beverage processing, as well as

boosting systems for agricultural irrigation


− Pumps

− Valves

− Heat exchangers

− Controls

− Dispensing equipment

▪ Primarily serves the utility infrastructure solutions and services

sector by delivering communications, smart metering,

measurement and control technologies and critical

infrastructure technologies

▪ Also provides analytical instrumentation used to measure and

analyze water quality, flow and level in clean water,

wastewater, surface water and coastal environments


− Smart meters

− Networked communications

− Controls & sensors

− Test equipment

− Critical infrastructure services

− Software and services

43%

29%

28%

Wate

r

Infr

ast

ructu

reA

pplied W

ate

rM

easu

rem

ent

&

Contr

ol Solu

tions

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix

29


Market overview

Water technology market – Countercyclical industry

Xylem’s market position

Source: Xylem

Note: (1) Addressable market size is excluding operational expenditures related to labor, energy, and chemicals

Population

growth

▪ Population growth, industrial expansion, and increased

agricultural development drive the demand for fresh

water. Consumption estimated to double every 20 years

- Growing focus on water quality, public health and

water scarcity are the additional key drivers

R&D

driven

market

▪ The global water sector remains highly competitive with

innumerable rival technologies, and it is not clear which

innovation will end up dominating the market, i.e.,

heavily R&D driven market segment

Increasing

demand

▪ By 2025, over 30% of the world’s population is expected to

live in areas without adequate water supply

Socially

important

▪ Streamlining the water industry’s cost structure with

technologies will help meet the global water needs, which

will fundamentally change the provision and management

of water

Scarce

resource

▪ Less than 1% of the total water available on earth is fresh

water

▪ 10% market share

▪ Well positioned to benefit from continued investment in water infrastructure

projects and investor interest in ESG exposure

▪ A substantial global installed base that provides for steady recurring revenue

▪ Far-reaching global distribution network reaching customers in approx. 150

countries

▪ Market-leading brands; some with a +100 years heritage

▪ Legacy of ground-breaking innovations and solutions

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix


Robust cash flow fundamentals(1)

Financials

Notes: (1) Acquisition date: 2021-07-01. Rental inflation: Year 1, 0.3%, year 2-8, 1.9%. Cost inflation: Year 1, 0.3%, year 2-8, 2.0%. Interest rate: 3-year tenor 2.35%,

thereafter 2.55%.

Cash flow to company (SEK) 2021E (SEK/m2)

2021E

(H2)

2022E 2023E 2024E 2025E 2026E 2027E 2028E

Rental income 2,436 21,071,783 42,262,788 43,059,983 43,873,123 44,702,526 45,548,516 46,411,426 47,291,595

Property caretaking -52 -449,722 -902,142 -920,185 -938,589 -957,361 -976,508 -996,038 -1,015,959

Maintenance, running -42 -363,875 -729,933 -744,532 -759,422 -774,611 -790,103 -805,905 -822,023

Maintenance, planned -6 -55,269 -110,869 -113,087 -115,348 -117,655 -120,008 -122,409 -124,857

Utilities -63 -545,626 -1,094,525 -1,116,416 -1,138,744 -1,161,519 -1,184,749 -1,208,444 -1,232,613

Property tax -126 -1,094,000 -2,194,564 -2,238,455 -2,283,224 -2,328,889 -2,375,467 -2,422,976 -2,471,436

Insurance -10 -86,485 -173,489 -176,959 -180,498 -184,108 -187,790 -191,546 -195,377

CAPEX - - -2,587,740 -1,288,649 - - - -598,581 -

Other -10 -86,485 -173,489 -176,959 -180,498 -184,108 -187,790 -191,546 -195,377

Total costs -310 -2,681,461 -7,966,752 -6,775,241 -5,596,324 -5,708,250 -5,822,415 -6,537,444 -6,057,641

NOI 2,126 18,390,322 34,296,036 36,284,743 38,276,800 38,994,276 39,726,101 39,873,982 41,233,954

Business management -400,000 -802,400 -818,448 -834,817 -851,513 -868,544 -885,914 -903,633

Administration -847,500 -1,700,085 -1,734,087 -1,768,768 -1,804,144 -1,840,227 -1,877,031 -1,914,572

EBITDA (excl. Transaction costs) 17,142,822 31,793,551 33,732,208 35,673,214 36,338,618 37,017,331 37,111,037 38,415,750

Tax -1,305,446 0 -1,075,496 -2,810,979 -2,906,930 -4,671,300 -4,684,812 -4,872,952

Interest costs -5,217,000 -10,434,000 -10,434,000 -10,878,000 -11,322,000 -11,322,000 -11,322,000 -11,322,000

Amortisation - - - - - - - -

Cash flow to the company 10,620,376 21,359,551 22,222,712 21,984,235 22,109,688 21,024,031 21,104,225 22,220,798

Liquid funds in 14,249,277 35,608,829 36,271,540 36,695,775 37,245,463 36,709,495 36,253,719 36,914,518

Dividend - 7% 7% 7% 7% 7% 7% 7%

Dividend, SEKm - -21,560,000 -21,560,000 -21,560,000 -21,560,000 -21,560,000 -21,560,000 -21,560,000

Liquid funds out 14,249,277 14,048,829 14,711,540 15,135,775 15,685,463 15,149,495 14,693,719 15,354,518

31


Debt facility

Financials, cont’d

Evaluation of debt financing options

▪ Arctic is, on behalf of Aquaticus Real Estate AB (publ.) (reg. no. 559280-0782) (the

“Company”), currently conducting final debt facility negations with a potential

lender

▪ The acquisition is intended to be funded by an Equity Issue of approx. SEK 308

million and approx. SEK 444 million in a senior secured debt facility

- The Company is evaluating an LTV of up to 60% with 0% amortization

- Targeted tenor is three years

Pre-agreed indications described in the table

▪ The debt facility (as described under Senior Secured Term Loan in the table to the

right) is based on a credit approved term sheet from a potential lender. Depending

on the outcome of these negotiations adjustments to the presented terms may be

applicable

Debt facility

Senior Secured Term Loan

Loan amount, SEKm 444

LTV, % 60

Term, years 3

Est. all-in cost, % ~2.35

Amortization, % 0

Hedging100% during the term of the debt

facility, arranged by the lender

Status

1st in security ranking. Security package

in accordance with market practice

including, inter alia, pledge over shares

in the Target and pledge of property

mortgage certificates

Financial covenants

LTV higher than 70% will trigger dividend

restrictions

LTV higher than 75% will ultimately

constitute an event of default

32


Solid long-term dividend fundamentals


Dividend yield

▪ Estimated long-term dividend amounts to ~7.0% p.a. on paid in equity of

SEK 308m

▪ The first dividend expected during Q1 2022

~50% equity est. to be accrued/returned over c. eight-year period

▪ Payed out dividends and the accumulated cash position upon year eight,

accounts for approx. 50% of the total invested equity

33

0%

10%

20%

30%

40%

50%

60%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2022E 2023E 2024E 2025E 2026E 2027E 2028E

Dididends & Acc cashfllow to equity

Dividend in % of equity Accumulated cash flow to company in % of equity


Rent-roll and lease agreement


Tenant full name Type Lettable area,

m2

Lease from Lease to Notice,

months

Prolongation,

months

Base rent,

SEK

Base rent

SEK/m2

Index,

%

Index,

SEK

Supplements,

SEK

Supplements,

SEK/m2

Passing rent,

SEK

Passing rent,

SEK/m2

Xylem Water Solutions

Global Services ABOffice 16,881 2004-04-01 2029-03-31 12 36 37,500,000 2,221 100% 2,240,566 2,403,000 142 42,143,566 2,497

N/AToday

unlettable415 N/A N/A - - - - - - - - -

Telenor Sverige AB Antenna - 2007-03-31 2021-12-31 12 12 - - - - - - -

GeneralXylem Water Solutions Global Services AB (reg. no. 556782-9253) is the main tenant in the

Property. The Tenant’s lease includes 163 garage parking spaces and 37 ground parking

spaces

SecurityXylem Inc. has provided a parent company guarantee of one year’s full rent

Lease periodThe commencement date for the lease agreement was 2004-04-01 and expires 2029-03-31.

The notice period is 12 months, if not terminated, the lease will be prolonged with three

years at a time

AreaThe total leased area amounts 16,881 m2, distributed as 7,232 m2 office, 4,919 m2 lab,

workshop, technical education and storage, 1,852 m2 conference, dining area, kitchen and

atrium, 1,070 m2 entrance, office, reception and goods handling, 948 m2 storage and

technical areas. An additional 860 m2, used as cold storage, service workshop and office,

has recently been created via mezzanine floor and an extension

Base rentThe total base rent is SEK 37,500,000 and is 100% adjusted according to CPI on

an annual basis

Service chargesIn addition to base rent, the Tenant shall also reimburse the landlord for water

and process cooling usage exceeding normal usage for office premises. The

Tenant is invoiced a preliminary supplement of SEK 65,000 for water and SEK

150,000 for cooling, which is subject to a yearly reconciliation

Property taxThe property tax is fully covered by the Tenant

34

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix

Management


Highly seasoned business management team

Arctic Business Management

• The Company will, in connection with the acquisition of the Property,

enter into a business management agreement with Arctic Business

Management

• Arctic Business Management was established in 2015 and has currently an

AUM of EUR ~2.8bn across 38 properties in the Nordics, with historical net

expansion of ~six projects per year. The Nordic team consists of ~17

employees who manages real estate SPV’s

Selection of key responsibilities:

• Board activities and handling of general meetings, CEO, day-to-day

business, establishment and structuring, accounting and budgeting,

financial reporting, investor relations, compliance (loan agreements, laws

and regulations), refinancing. A full-service management for the real

estate projects. Property caretaking will be supplied by a reputable

external provider

36

€2.8bnReal estate AUM

~900kLettable m2 under

management

38Properties

# € bn

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0

5

10

15

20

25

30

35

40

2016 2017 2018 2019 2020

Gross real estate value (€ billion)

Number of projects

Investment terms


General information & Structure

Note: (1) Downstream merger post closing

Debt facilityTo finance transaction

EquityEquity

investors

Cash flow from the Property generates dividends to the investors

Board of DirectorsRepresented by investors

100%

BidCo

PropCo

100%

37

(1)

Use of capital (approx.) SEKm

Gross property value 740.0

Latent tax discount -26.4

Other discounts -2.6

Net property value 711.0

Mortgage deeds 8.9

Sales and arrangement fee 22.1

Debt financing costs 1.3

Legal and due diligence costs 5.1

Working capital 3.6

Total investment volume 752.0

Financing assumptions

Tenure, years 3

LTV, % 60

All-in interest cost, % 2.35

Loan amount, SEKm 444

Terms of subscription

Total paid-in equity, SEKm 308

38


General terms

Equity issue

The contemplated equity issue

▪ The board of directors will propose to raise equity in an amount of SEK 308,000,000 by way of an equity issue in which the Company issues 3,080,000 new shares at a price of SEK 100 per share (the "Equity Issue")

▪ The formal resolution to approve the Equity Issue will be taken by the general meeting of the Company on or about 2021-06-04 where the general meeting also will resolve to redeem the existing 500,000 shares in the Company

which are held by Arctic at a redemption price of SEK 1 per share

▪ The Equity Issue is conditional upon certain conditions that are described in the Application Form

▪ In the event the conditions have not been met prior to 2021-09-01, the funds will be repaid to the investors by way of a redemption of shares or by dividends

▪ The Company and the Manager may in their sole discretion cancel the Equity Issue at any time for any other reason

▪ Following the end of the application period, the allocation of shares will be made at the discretion of the board of directors in consultation with Arctic

▪ The expected settlement date is on or about 2021-06-22

▪ Upon payment of the shares, the investors will receive interim shares versus payment (DvP) in the VPC system (Euroclear Sweden) to the investor’s VP account or custodian account which will be automatically converted to

shares on the VP- or custodian account when the Equity Issue has been registered with the Swedish Companies Registration Office.

▪ Further information regarding the Equity Issue is included in the Application Form

39


General information

Additional information

The Company

▪ The Company is a Swedish public limited liability company with corporate identification number 559280-0782 registered with the Swedish Companies Registration Office since 2 November 2020. The Company and its operations

are governed by Swedish law

▪ The Company has no previous business history. The Company will acquire (and subsequently own) the shares in the Target, through the BidCo. The Company is the ultimate parent company of the Group and will enter into the

Business Management Agreement and the Asset Management Agreement

▪ The Company will ultimately conduct its business through the Target. The Target will generate its cash flow through the Tenants payments under the Lease Agreements

Board of directors and the management of the Company

▪ The duties and responsibilities of the board of directors follow from Swedish law and include the overall management and control of the Company. The interim board of directors was elected by the general meeting of the

Company and currently consists of three members.

▪ All interim board members are employed by the Manager or the Business Manager. The new board of directors, which is likely to include representatives of the investors in the Company, will be appointed at an extraordinary

general meeting after closing of the Transaction.

▪ The Company's CEO has been appointed by the interim board of directors in accordance with a proposal by the Business Manager.

Miscelleanous

▪ Arctic and the Company will enter into a mandate agreement (the “Mandate Agreement”) where Arctic shall act as an independent broker with a view to identify and procure, on a best effort basis, investors for the purpose of

the Equity Issue. The services provided by Arctic shall, inter alia, include arrangement services, marketing, preparation of road-shows, valuation of assets, assistance with the negotiation and incurrence of the Debt Facility,

giving advice in respect of capital and shareholder structure, preparation of necessary documentation, assistance with the subscription and settlement and registration of the shares.

▪ Furthermore, Arctic shall be given the opportunity to leave tender for the role as financial advisor in connection with a future share or bond issue, a refinancing of the Company's and the Groups external debt, any divestment of

the Target or the Asset, any acquisition of new properties and/or Asset owning companies or any other merger, acquisition or capital market transactions (a "Future Engagement"), provided that (i) Arctic has the capability to

provide the required assistance for such Future Engagement, and (ii) that the assistance for such Future Engagement is provided by Arctic on market terms.

▪ No exit fee shall be paid to Arctic upon sale or other realisation of the Asset (or any other acquired properties) or upon termination of the Mandate Agreement. However, in the event the Company terminates the Mandate

Agreement before the Transaction is completed, Arctic’s right to fees pursuant to the Mandate Agreement shall survive and remain in full force and effect and continue to apply where any transaction to which the Mandate

Agreement would have applied (had Arctic been retained) is concluded by the Company within 12 months from termination.

▪ The Mandate Agreement between the Company and Arctic is available to receive from the Manager upon request.

▪ The total costs associated with the acquisition of the Target and the start-up of the Group is estimated to a total of approximately SEK 37.3 million. Of this, the Manager will receive approximately SEK 3.6 million as an

arrangement fee for the debt arrangement and approximately SEK 18.5 million for work relating to capital raising, structuring of the investment, advisory services, services in connection with the incurrence of the Debt Facility.

▪ Arctic is entitled to a fixed arrangement fee of approximately SEK 22.1 for the aforementioned services that shall be payable on the date of the signing of the Share Purchase Agreement relating to the acquisition of the Target.

Table of contents

Investment summary

The Property

Location

Xylem


Financials


Appendix

41


Multinational corporation with elongated heritage

Xylem’s history

Founded

1920

International Telephone &

Telegraph was founded

Split

1995

ITT was split into:

ITT Corp. (hotel and

gaming), ITT Hartford

(insurance), ITT Industries

(industrials)

M&A

1997

ITT Corp. completed a

merger with Starwood

Name change

2006

ITT Industries changes

name to ITT Corporation

Split

2011

ITT Cooperation was split

into three separate

companies: ITT

Corporation, ITT Exelis,

and Xylem

Founded

Peter Alfred Stenberg

starts operating a forge in

Emmaboda

1901

Name change

Changes name to

Stenberg-Flygt AB

1962

M&A

Stenberg-Flygt AB was

acquired by ITT Industries

1968

42


Business overview

Xylem Inc. – financials

Segment split (FY 2020)

Source: Xylem

USDm 2018 2019 2020 2021e 2022e 2023e

Revenue 5,207 5,249 4,876 5,188 5,458 5,696

Growth 10.6% 0.8% -7.1% 6.4% 5.2% 4.4%

EBITDA 1,013 1,023 795 887 995 1,074

Margin (%) 19.5% 19.5% 16.3% 17.1% 18.2% 18.9%

EBIT 752 766 544 639 747 814

Margin (%) 14.4% 14.6% 11.2% 12.3% 13.7% 14.3%

Net income 549 401 254 464 555 609

Margin (%) 10.5% 7.6% 5.2% 9.0% 10.2% 10.7%

Balance sheet

Total Assets 7,222 7,710 8,750 8,726 9,010 9,775

Total Equity 2,782 2,967 2,976 3,220 3,565 4,077

Debt 2,308 2,316 3,084 3,058 3,058 3,084

Cash 296 724 1,875 1,643 1,828 2,606

Net debt 2,012 1,592 1,209 1,415 1,230 478

Credit metrics

Debt/EBITDA 2.3x 2.3x 3.9x 3.4x 3.1x 2.9x

Net Debt/EBITDA 2.0x 1.6x 1.5x 1.6x 1.2x 0.4x

Debt/Equity 0.8x 0.8x 1.0x 0.9x 0.9x 0.8x

Net Debt/Equity 0.7x 0.5x 0.4x 0.4x 0.3x 0.1x

Equity ratio 38.5% 38.5% 34.0% 36.9% 39.6% 41.7%

By geography

47%

29%

13%

11%

US

Europe

Asia

Pacific

Other

By sector

55%30%

10%5%

ResidentialCommercial

Water

utilitiesIndustrial

43


Debt overview(1)

Xylem Inc. – Robust credit profile

Debt maturity

Comments

Source: Xylem; as of December 2020

Note: (1) The chart is illustrative and not to scale and Gross debt includes debt issuance costs of USD 28m

▪ Xylem has available liquidity of c. USD 3.3bn, consisting of USD 1.9bn of cash,

USD 800m of available credit facilities along with USD commercial paper

program and USD 612m of Euro Commercial Paper Program

▪ Has issued several senior notes with interest rate ranging from 1.95% to 4.875%

and next short term debt maturity is in October 2021

- On June 26, 2020, issued USD 500m 1.950% Senior Notes due 2028 and USD

500m 2.250% Senior Notes due 2031 (together, the “Green Bond”)

▪ Targets to maintain investment grade Credit Rating (BBB/Baa2)

▪ Target leverage ratio of <2.5x EBITDA

Net Debt

USD 1,237m

Cash

USD 1,875m

Net Debt

Gross Debt

USD 3,112m

600 612

500

>6 yr

1,400

<1 yr 1-3 yr 3-6 yr

2021 Bond

2023 Bond

Revolving

Credit Facility

+

USD

Commercial

Paper Program

Facilities

USD 4,524m

600

612

500

1,412

USDm

2026 Bond

2031 Bond

2028 Bond

2046 Bond

500

500

400

2021 Bond

2023 Bond

Undrawn RCF

and

commercial

paper

USD 1,412m

2026 Bond

2031 Bond

2028 Bond

2046 Bond

Gross Debt

USD 4,524m

USDm

Euro

Commercial

Paper

44


Business overview

The Tenant – Xylem Water Solutions Global Services AB

Key financials (SEKm)

Source: Xylem Water Solutions Global Services AB annual fillings 2019

▪ Xylem Water Solutions Global Services AB performs intra-group services within

the administrative areas and conducts extensive research and development

activities

▪ The business is located at two centers in Sweden, Sundbyberg and Emmaboda

- Xylem Water Solutions Global Services AB's head office with marketing and

design departments and laboratory is located in the Property

- The company also has operations in Emmaboda, where above all service

within the functions IT, Finance and HR are performed. Emmaboda also

handles the Group's product and sales warehouses

▪ The company's R&D department in the Property continuously develops and

launches new products and solutions to help solve the future global water issues

- Develops products in the Flygt and Steady range sewage pumps, Flygt pump

stations, Flygt and Grindex drainage pumps and Flygt mixer

- Also has significant development of products in monitoring and control of

pumps and mixers

P&L 2016 2017 2018 2019

Revenue 922 835 895 934

Growth 12.4% -9.4% 7.1% 4.4%

EBITDA 54 58 49 49

Margin (%) 1.1% 1.1% 0.9% 1.0%

EBIT 48 51 43 42

Margin (%) 1.0% 1.0% 0.8% 0.9%

Net income 25 27 13 21

Margin (%) 0.5% 0.5% 0.2% 0.4%

Balance sheet

Total Assets 382 440 473 524

Total Equity 80 109 115 133

Equity ratio 20.8% 24.7% 24.3% 25.4%

820922

835895 934

2016 2017 2018 20192015

+3%

Risk factors


Prospective investors should be aware that investments in shares are always associated with risks. The financial performance of Aquaticus Real Estate AB (publ), reg. no. 559280-0782 (the "Company") and its subsidiaries from timeto time (the "Group") and the risks associated with the Group's business are important when making a decision to invest in the up to SEK 308,000,000 in the Equity Issue (as defined below) (the "Shares"). There can be no guaranteesor assurances that the Company's objectives are met and that an investment in turn will generate a positive return for the investor. A number of factors influence and could influence the Group's operations and financialperformance and ultimately the Company's ability to pay dividends. In this section a number of risk factors are illustrated and discussed, both general risks pertaining to the Company's operations and material risks related to theShares as financial instruments. The risks described below are not the only ones the Group is exposed to.

Only a limited due diligence review has been performed on the Target based on the documentation made available to the Manager by the Vendor, with respect to the Property and the Target (each as defined below) and is at thedate of this Presentation currently on going. Without prejudice to the generality of the foregoing, the legal review has not included matters relating to the technical functions of the buildings or the technical construction of thebuildings. Additional risks that are not currently known to the Company, or that the Company currently considers to be immaterial, could have a material adverse effect on the Group's business. The order in which the risks arepresented is not intended to provide an indication of the likelihood of their occurrence or of their relative significance.

There is further no guarantee that all documentation and information relevant to the legal review have been provided by the Vendor. The outstanding documentation may therefore contain hidden liabilities or obligations andfurther subsequent risks not known at the date of this Presentation.

General risk factors and deviation from forward looking statements

It should be emphasised that an investment in the Company is subject to risk. Investors should be aware of the fact that such investment might involve loss. Such loss will be limited to each investor's investment in the Company. Aninvestment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of the investment. The list below comprises the most importantrisk factors related to the Company's contemplated equity issue (the "Equity Issue"). All of these risk factors are important, and the risk factors are not listed in order of importance.

Further, this Presentation contains forward-looking statements based on current expectations which involve risks and uncertainties. The actual results could differ materially from the results anticipated in these forward-lookingstatements as a result of many factors, including, but not limited to, the risk factors set forth in this section and elsewhere in this Presentation. The cautionary statements made in this Presentation should be read as beingapplicable to all forward-looking statements wherever they appear in this Presentation. There is a risk that the current expectations, and as such the forward-looking statements, are not correct. If so, it could affect the Group'sfinancial conditions and the equity returns negatively.

Limited or no substantial operating history

The Company is in a development stage and has recently been formed for the purpose of carrying out its business plan. Although Arctic Business Management AS Filial Sverige, reg. no. 516411-8647 (the "Business Manager") has manyyears' experience in the business sector, the Company is new and as such has no operating history. The Company will therefore be depending on the Business Manager and on any future asset manager (the "Asset Manager") in orderto carry out its business plan and conduct its day-to-day business.

Market and regional specific risk

Real estate investment, and thus the Group's business, is to a large extent linked to the value of the real estate. This risk can thus be defined as those factors that influence property valuations. The main factors are the supply anddemand for commercial properties, as well as the yield that investors are willing to accept when purchasing real estate. The real estate market is influenced by the vacancy rate in the market. The vacancy rate is influenced byseveral factors on both a micro and macro level. Negative changes in the general economic situation, including business and private spending, may adversely affect the demand for commercial premises. The free capacity is alsoinfluenced by construction and refurbishment activity. Further, the real estate market is influenced by the demand for the type of real estate that the Group owns. During certain periods there might be fierce competition for a fewreal estate objects, and it might be difficult to purchase desired objects at the desired price. In other periods, it might be difficult to sell real estate objects at the desired price. A decrease in the value of the property Fröfjärden 3in the municipality of Sundbyberg (the "Property") would adversely affect the valuation of the Group's property portfolio and hence have an adverse effect on the Group's business, financial condition and equity returns.

45

Risk factors


Transaction risk

The purchase agreement for the shares in the target company Stam Elva AB, reg. no. 556950-3021 (the "Target") (the "Share Purchase Agreement") contains customary limitations as to which claims can be made against the vendorunder the Share Purchase Agreement, AMF Pensionsförsäkring AB, reg. no. 502033-2259 (the "Vendor") and at what point in time these claims can be made. In addition, the Target may also have hidden liabilities which do not relateto the Property and there is a risk that any potential losses incurred due to such liabilities cannot be possible to claim from the Vendor, and may therefore have a negative effect on the Group's financial condition and equity returns.

Counterparty risk

The Group is dependent on the Vendor's ability to fulfil its obligations and undertakings, including, warranties and indemnities, under the Share Purchase Agreement, meaning that the financial strength of the Vendor and itswillingness to fulfil its obligations and liabilities is critical and the Group's exposure of economic risks is increased. In the event the Vendor is not able or willing to fulfil its liabilities under the Share Purchase Agreement, this wouldhave an adverse effect on the Group's business, financial condition and equity returns.

Operational risk

The financial status and strength of the tenant of the Property, Xylem Water Solutions Global Services AB, reg. no. 556782-9253 (the "Tenant"), and thus its ability to pay rent etc., will always be a decisive factor when evaluatingthe risk of property companies. Operational risk also includes risk related to restrictions in the lease agreement relating to the Property with the Tenant (the "Lease Agreement"), risk related to legal claims from the Tenant orauthorities, including tax authorities and other third parties, risk for increased maintenance costs, risk for decreased technical conditions and risk for hidden defects and emissions. In the event that the Tenant is not able to pay rentunder the Lease Agreement, this could have a material adverse effect on the Group's business, financial condition and equity returns. The Lease Agreement with the Tenant entered into force on 1 April 2004 and run until 31 March2029, with an automatic extension period of three years at a time unless the Lease Agreement is terminated in accordance with the Lease Agreement by giving 12 months prior written notice.

Furthermore, if the Property in the future must be renovated and/or adjusted, e.g. to serve the needs of a new tenant, or serve several tenants instead of a single tenant, such investments and projects could affect the Group'sfinancial condition and equity returns negatively. There could also be a period when the Property has no tenant(s) and consequently no income, which would affect the Group's financial condition and equity returns negatively.

Tenant risk

The Group is dependent on the Lease Agreement and as such, the financial strength of the Tenant is critical for the Group's business. In the event that the Tenant is not able to pay its rent, this could have a material adverse effecton the Group's business, financial condition and equity returns. Financial difficulties on the part of the Tenant may result in the Group having to find new tenant(s) in an unfavourable market, thus failing to achieve the same cashflow from the Property.

Furthermore, should the Tenant not extend the Lease Agreement after the Lease Agreement has expired, this could have a material negative impact on the Group's business, financial position and equity returns. Furthermore, in theevent that the Tenant is not able to pay rent, this could have a material adverse effect on the Group's business, financial condition and equity returns.

Property risk

The Property is located in the Stockholm area in the municipality of Sundbyberg, and accordingly the Group's property holdings are exposed towards macroeconomic factors that affect those parts of Sweden. In addition, should theGroup acquire any additional properties, the Group will also be exposed towards macroeconomic factors that affect the geographic locations where such additional properties are located. Furthermore, the supply and demandregarding real estate, and accordingly the yield on real estate investments differ between different geographical markets and may develop differently within different geographical markets. The demand for real estate may decreasein the geographical market of the Property even if the demand does not decrease in the rest of the country. This may lead to increased vacancies, lower future rental rates and/or decreasing market value of the Property. If one orseveral of these factors would develop negatively, this could have a significant negative impact on the Group's business, financial position and equity returns.

46

Risk factors


Returns from the Property will depend largely upon the amount of rental income generated from the Property, the costs and expenses incurred in the maintenance and management of the Property, necessary investments in theProperty and upon changes in its market value. Rental income and the market value for properties are generally affected by overall conditions in the economy, such as growth in gross domestic product, employment trends, inflationand changes of interest rates. Both property values and rental income may also be affected by competition from other property owners, or the perceptions of prospective buyers and/or the attractiveness from tenants, convenienceand safety of the Property. If the market value of the Property decreases, this may have a material negative effect on the Group's business, financial condition and equity returns.

Terminal value risk

Property and property related assets are inherently difficult to appraise due to the individual nature of each property and due to the fact that there is not necessarily a liquid market or clear price mechanism. As a result, valuationsmay be subject to substantial uncertainties. There is a risk that the estimates resulting from the valuation process will not reflect the actual sales price. Any future property market recession could materially adversely affect thevalue of the Property.

Risks associated with construction and project development on the Property

The building on the Property was newly constructed in 2003. In recent years, the Property has been subject to certain refurbishment works, in respect of e.g. the construction of a built-in loading bay on the Property, which wasfinalised in 2020. Construction projects involve certain inherent risks related to general construction defects, forbidden use of the properties for the intended purposes, other latent defects, damages and pollutions that may berevealed after the construction is completed. If these technical problems would occur or emerge in a later stage on the Property it may have a negative effect on the Group's financial condition, its business and equity returns.

Furthermore, there are certain risks related to construction and development projects on real properties with respect to tenant adaptations and other tenant improvements required or requested by a tenant. Lack of quality in theexecution of construction and development projects, as well as in the event of infringements in a tenant's right of use, is oftentimes associated with claims for e.g. rent reduction and damages by tenants whose rights and interestshave been infringed due to the construction and development projects. In addition, owners of real properties are subject to liability towards third parties with regard to actions or measures taken on the property. The liability isbased on the general provision of property owners' liability, which enables claims for damages being brought against owners of real properties should a third party incur any damage or loss due to such actions or measures. Should anyof the above risks materialise this could have an adverse effect on the Group's financial condition, business and equity returns.

Risks relating to unforeseen costs regarding the Property

There is a risk that the Target, in its capacity as property owner, will be liable for future costs regarding the Property. The responsibility for costs relating to maintenance as well as investments and repairs at the Property may notbe fully regulated or clearly allocated to the Tenant under the Lease Agreement. In the event of any of the above described scenarios, the Target, in its capacity as the landlord and property owner, could risk unforeseeable costs,which could have a negative effect on the Group's financial condition, business and equity returns.

With regards to unforeseen costs, property investments and property management always contain a technical risk related to the operations of the Property, including, but not limited to, construction issues, hidden defects anddamage (including through fire or other natural disasters). These types of technical problems could result in significant unforeseen costs relating to the Property. If the Property encounter any such unforeseen costs in the future,this could substantially increase the costs relating to the Property, which could affect the Group's business, financial condition and equity returns negatively.

Risks relating to provisions in the Lease Agreement

In accordance with the Lease Agreement, the Tenant is entitled to 37 above-ground parking spaces located along the north border of the Property, as well as 163 parking spaces located in the parking garage on the ground level ofthe building on the Property. The above-ground parking spaces currently sit within the property Fröfjärden 12 in the municipality of Sundbyberg, which is owned by the Skanska group. The right of use of the above-ground parkingspaces is secured through a registered easement agreement originally entered into by and between the Skanska group and the Vendor. The easement agreement explicitly states that the subject of easements (i.e. the above-groundparking spaces) shall not be less than 27 above-ground parking spaces. In light hereof, the easement agreement thus provides for the servient property unit(s) (Sw. tjänande fastigheter) to provide less than 37 above-ground parkingspaces without violating the terms of the easement agreement. In the event the servient property unit(s) would reduce the above-ground parking spaces below the required minimum as stated in the Lease Agreement, the Tenantwould be able to claim that the Company, in its capacity as landlord under the Lease Agreement, is in breach of the terms and conditions of the Lease Agreement, which could have an adverse effect on the Group's business,financial condition and equity returns.

47

Risk factors


Financial risk

Financial risk includes, but is not limited to, risk of not achieving the desired leverage ratio, not fulfilling loan obligations, interest rate fluctuations, risk related to effects of fair value adjustments and changes in laws and rulesregarding tax and duties. The Tenant's rent is subject to indexation based on Swedish CPI (consumer price index (Sw. konsumentprisindex)). Deviations from the estimated CPI may have a negative effect on the Group's business,financial condition and expected equity returns.

Risk related to the Bond Issue

As the date of this Presentation, the terms of the Company's subsidiary's, Aquaticus Real Estate Holding AB, reg. no. 559256-2440 ("BidCo"), contemplated senior secured bond issue in an amount of approximately SEK 444,000,000 (the"Bond Issue" and the "Bonds"), to be used to finance the Transaction together with the capital raised in the Equity Issue, are still under negotiation and no binding commitment letter has been executed. There is a risk that the Groupwill not be able to issue the Bonds on the indicative terms of the Bond Issue, resulting in that the Group does not receive funding on terms as favorable as presented in this Presentation, or at all, and that the Group may thereforeneed to issue the Bonds on less favourable terms and/or seek external funding from another finance provider on different terms, e.g. a higher interest rate. There is a risk that such amended terms with a new finance provider couldadversely affect the Group's financial condition and affect equity returns. Ultimately, there is a risk of not finalising the Transaction if the Group does not manage to raise sufficient external funding.

Compliance with the terms and conditions of the Bonds

The contemplated Bond Issue will make the Group subject to a number of covenants dictating what actions the Group may and may not take. Should the Group breach these covenants, it may trigger mandatory pre-payment (put-option) of the Bonds and dividend restrictions. Further, additional financing costs may incur and the Bonds may be accelerated for immediate payment, which could ultimately result in bankruptcy and liquidation of the Group. Suchevents would negatively affect the Group's financial condition and equity returns.

There is a risk that the terms and conditions of the contemplated Bond Issue will contain an ownership clause (i.e. change of control). Such ownership clause might restrict any legal person's right to acquire or control more than acertain agreed share of the capital and/or voting rights of the Company. Should the terms and conditions of the contemplated Bonds contain such ownership clause and any person acquires or obtains ownership or control exceedingthe agreed share, the full amount outstanding under the Bonds may be declared due and payable at short notice. There is a risk that a refinancing in connection with such event would lead to increased costs and could thereforeadversely affect the Group's financial conditions and equity returns.

Financing risk

The Group is deemed to be sufficiently funded following the completion of the offer set out in this Presentation. However, additional capital needs, due to for example unforeseen costs and/or larger capital expenditures thanexpected, cannot be ruled out. There is a risk that the Group cannot satisfy such additional capital need on favourable terms, or at all, which could have an adverse effect on the Group's business, financial condition and equityreturns.

Refinancing risk

At maturity of the Group's debts (including the Bonds), the Group will be required to refinance such debt. The Group's ability to successfully refinance such debt is dependent on the conditions of the financial markets in general atsuch time. As a result, there is a risk that the Group's access to financing sources at a particular time may not be available on favourable terms, or available at all.

The Group will also, in connection with a refinancing of its debts, be exposed to interest risks on interest bearing current and non-current liabilities. Changes in interest rates on the Group's liabilities will affect the Group's cash flowand liquidity, and could hence potentially adversely affect the Group's financial conditions and the equity returns. The Group's inability to refinance its debt obligations on favourable terms, or at all, could have a material adverseeffect on the Group's business, financial condition and equity returns. According to the indicated terms of the contemplated Bond Issue, the Bonds will assume a maturity of three years.

48

Risk factors


Compliance with the terms and conditions of the Bonds

The contemplated Bond Issue will make the Group subject to a number of covenants dictating what actions the Group may and may not take. Should the Group breach these covenants, it may trigger mandatory pre-payment (put-option) of the Bonds and dividend restrictions. Further, additional financing costs may incur and the Bonds may be accelerated for immediate payment, which could ultimately result in bankruptcy and liquidation of the Group. Suchevents would negatively affect the Group's financial condition and equity returns.

There is a risk that the terms and conditions of the contemplated Bond Issue will contain an ownership clause (i.e. change of control). Such ownership clause might restrict any legal person's right to acquire or control more than acertain agreed share of the capital and/or voting rights of the Company. Should the terms and conditions of the contemplated Bonds contain such ownership clause and any person acquires or obtains ownership or control exceedingthe agreed share, the full amount outstanding under the Bonds may be declared due and payable at short notice. There is a risk that a refinancing in connection with such event would lead to increased costs and could thereforeadversely affect the Group's financial conditions and equity returns.

Risk related to interest rates and swap terms

In accordance with the indicative terms of the terms and conditions of the Bonds, the original bondholders, will, in their sole opinion, have a right to increase or decrease the margin subject to the occurrence of certain pre-agreedevents. Any such increase of the margin will lead to increased financing costs and may therefore have a negative effect on the Group's financial condition and equity returns. If the original bondholders exercise their option toincrease the margin, the BidCo may redeem the outstanding Bonds in advance. Furthermore, following a redemption of the Bonds, the Group may have to incur additional financing on terms equal or less than the Bond Issue. Anysuch redemption will lead to increased costs and may therefore have a negative effect on the Group's financial condition and equity return.

The final swap rate under the terms and conditions of the Bonds will not be determined until on or about the closing date of the Transaction and the Group is hence, until such date exposed to risks relating to swap rate fluctuations.There is a risk that the financial charges payable by the Group for the Bonds will be higher than calculated in this Presentation. A higher swap rate level will lead to increased costs and may therefore have a negative effect on theGroup's financial condition and equity returns.

Increased maintenance costs

The estimated maintenance and capital expenses on which the forward-looking statements or any other budget of the Group have been calculated are based upon information from the Vendor, historic maintenance costs for theProperty and a draft technical due diligence conducted on the Property. There is a risk that the maintenance costs and capital expenses for various reasons may exceed the estimated maintenance costs and capital expensespresented herein, and could therefore adversely affect the Group's financial condition and equity returns.

Management risk

As the date of this Presentation, the terms of the Business Management Agreement and the Asset Management Agreement are still under negotiation and no binding agreement has been agreed with either of the Business Manager orthe Asset Manager. There is a risk that the Company and either of the Business Manager or the Asset Manager do not agree on the final terms regarding asset and business management services resulting in that the Group does notreceive such services on terms as favorable as presented in this Presentation, or at all, and that the Group may need to seek such services from other providers on different terms which may increase costs for management services.As a result, there is a risk that the Group's access to management services turn out more expensive or might only be available at less favorable terms than expected by the Group, which could have an adverse effect on the Group'sbusiness, financial condition and equity returns.

Environmental and technical risk

According to the polluter pays-principle established under Swedish environmental law, the operator who has contributed to pollution will be responsible for remediation. However, should it not be possible to locate the polluter, theproperty owner is subsidiary responsible for remediation and associated costs. Accordingly, there is a risk that the Target in its capacity as property owner may be held responsible for costly remediation.

The Property is not listed in the MIFO-register (methodology for inventory of contaminated properties) (Sw. metodik för inventering av förorenade fastigheter) as potentially contaminated. However, there is a risk that there may beenvironmental issues on the Property, causing a risk that the Group could be subject to claims by public authorities or third parties as a result of environmental, technical or other damages related to the land and the Property,should such contamination occur on the Property. Any such claims could have an adverse effect on the Group's business, financial condition and equity returns.

49

Risk factors


Potential lack of protection under lease guarantee

As security for the Tenant's fulfilment of its obligations under the Lease Agreement, Xylem Inc., the parent company of the Tenant has provided a parent company guarantee, which is limited to an amount corresponding to theannual rent under the Lease Agreement. In the event the Group would have to claim fulfillment under the guarantee, there is a risk that the Group would have insufficient coverage in this respect, which could have an adverseeffect on the Group's financial position and equity returns.

Risk related to future share issues

If the Company would need additional capital in the future, the lack of participation from investors could pose a risk to the Company's financial position (until such further issue is completed). In addition, should the Company in thefuture choose to increase its share capital by way of a share issue, existing shareholders would under most circumstances have a preferential right to subscribe for Shares unless the shareholders of the Company resolve to approve adeviation from such rights at a general meeting. Existing shareholders in jurisdictions where participation in such share issue would require additional prospectuses, registration and/or other measures than those required underSwedish law could be excluded from their right to subscribe for new shares if such shares or shareholder rights are not registered under e.g. the U.S. Securities Act or equivalent regulations in other concerned jurisdictions and if noexemptions from the registration requirements are applicable.

As of the day of this Presentation, it is unlikely that the Company will apply for such registration and it cannot be guaranteed that any exemption from registration requirements will be applicable which could have the effect thatthe ownership of shareholders being based abroad is diluted. Furthermore, investors who are not participating, or who are not given the possibility to participate, in future issues will risk having their ownership diluted.

Legal and regulatory risks

Investments in the Shares involve certain risks, including the risk that a party may successfully litigate against the Group, which may result in a reduction in the assets of the Group. Changes in laws relating to ownership of landcould have an adverse effect on the value of Shares. New laws may be introduced which may be retrospective and affect environmental planning, land use and/or development regulations.

Government authorities at all levels are actively involved in the promulgation and enforcement of regulations relating to taxation, land use and zoning and planning restrictions, environmental protection and safety and othermatters. The institution and enforcement of such regulations could have the effect of increasing the expense and lowering the income or rate of return from the Company, as well as adversely affecting the value of the Property.Government authorities could use the right of expropriation of the Property if the requirements for expropriations are satisfied. Any expropriation will entitle the Group to compensation but the Group's financial condition may,irrespective of such compensation, be negatively affected.

Risk related to interest deduction limitation rules

Due to the implementation of the EU Anti-Tax Avoidance Directive, the Swedish Government has adopted rules governing the tax deductibility of interest expenses. The rules entered into effect 1 January 2019.

Under the Swedish rules, a general limitation for interest deductions in the corporate sector was introduced by way of an EBITDA-rule. Under the EBITDA-rule, net interest expenses, i.e. the difference between the taxpayer'sinterest income and deductible interest expenses, are only deductible up to 30% of the taxpayer's EBITDA for tax purposes. As an alternative to the EBITDA-rule, a group may opt to apply the safe harbour rule under which netinterest expenses of up to SEK 5 million is deductible for the group as a whole regardless of the EBITDA. In connection with the introduction of the general interest deduction limitation rules, the Swedish corporate tax rate wasreduced from 22% to 20.6% (as of 1 January 2021). The interest deduction limitation rules could, depending on e.g. the Group's net operating income and financial structure, have a material adverse effect on the Group's business,financial condition, or results of operations, and affect the Group's equity returns negatively.

Risk related to taxes and changes in tax legislation

The Group's operations are conducted in accordance with the Group's interpretation of applicable tax laws, regulations and case law and in accordance with advice from tax advisors. However, it cannot be ruled out that the Group'sinterpretation is incorrect or that such regulations or case law are amended with potential retroactive effect. Thus, through decisions of the Swedish Tax Agency (Sw. Skatteverket) and the Swedish Administrative Courts, the Group'stax situation may change, which might have a material adverse effect on the Group's business, financial condition, or results of operations, and affect the Group's equity returns negatively.

The Group's operations are affected by the tax rules in force from time to time in Sweden. Since these rules have historically been subject to frequent changes, further changes are expected in the future (potentially withretroactive effect). Any such changes may have a material adverse effect on the Group's business, financial condition, or results of operations, and affect the Group's equity returns negatively.

50

Risk factors


Processing of personal data

The Group will register, process, store and use personal data in the course of its business on servers owned by the Business Manager, located in Sweden. It is of high importance that the Group registers, processes and uses personaldata in accordance with applicable personal data legislation and requirements. There is a risk that the Group's handling of personal data is or has been inaccurate, or that due to security deficiencies a data breach occurs which leadsto the spreading of personal data without the Group's control. A breach of the General Data Protection Regulation ("GDPR"), issued by the European Union, may result in administrative sanctions amounting to the higher of EUR20,000,000 and 4% of the previous year's combined annual turnover of the ultimate parent company that controls the business and all other companies such ultimate parent company controls. If the Group fails to comply with theGDPR, this may have a negative impact on the Group's business, financial condition and equity returns.

AIFM risk

The Alternative Investment Fund Managers Directive 2011/61/EU has been implemented in Sweden however, there are still some unresolved/unclear issues regarding how to interpret the directive. The Company has deemed itself tofall outside of the scope of the AIFM Directive due to its industrial purpose, i.e. because the Company shall indirectly generate returns through the Property's operations in the market and not necessarily by divesting the Property.However, there is a risk that the Company may be considered an AIFM, which would among other result in additional costs to a depositary and a manager.

Closing risk

The Equity Issue is conditional upon a signed Share Purchase Agreement between the Company, or an indirect or direct subsidiary of the Company, and the Vendor regarding all shares in the Target, and that all conditions under theShare Purchase Agreement for paying the purchase price of the Target to the Vendor have been fulfilled. Since the proceeds of the Equity Issue will be used to pay the purchase price for the shares in the Target, the Equity Issue(including payment of the Shares) must be carried out prior to the closing of the Share Purchase Agreement. There is a risk that closing will not occur, due to for instance a material breach of a warranty under the Share PurchaseAgreement by the Vendor or unforeseen events, in which case the Transaction and the Equity Issue will not be carried out in full or at all. In the event the Company goes bankrupt or is liquidated, the investors' claim to receive anypaid-in equity will compete with claims under the Share Purchase Agreement, taxes or any other claims. There is a risk that the investors will not receive all, or anything, of the equity initially invested.

Risks relating to the Company's ability to pay dividends

The Company's ability to pay dividends is dependent on several factors, such as the Group's distributable reserves and liquidity situation, as well as any limitation imposed by applicable law and regulations. Furthermore, anypayment of dividend may be subject to certain covenants in the financing documentation (including the Bonds). Any payment of dividend from the Group is dependent on a proposal from the board of directors of the Company andultimately the decision by a general meeting. There is a risk that the Company will not be able to pay dividends as projected in this Presentation.

Risks relating to the Shares

The intention is that the Company will apply for listing of the Shares on an MTF (multilateral trading facility) following completion of the Transaction. However, there is a risk that the Shares will not be admitted to trading. Even ifthe Shares are admitted to trading on an MTF, there is a risk that active trading in the Shares will not occur and hence there is a risk that a liquid market for trading in the Shares will not occur or be maintained. Furthermore, thesubscription price of the Shares in the contemplated Equity Issue may not be indicative compared to the market price of the Shares if they are admitted for trading on an MTF.

Real estate is considered an illiquid asset and normally it takes months to invest in and realise direct investments in property. The Shares' liquidity is uncertain, and it can be difficult to sell the Shares in the secondary market. Aninvestor can only exit the investment through a sale of the Shares in the secondary market or if the Company sells the Property. Investments in the Shares are only suitable for investors who can bear the risks associated with a lackof liquidity in the Shares.

Dilution in case of a new share issue

In connection with the listing of the Shares with an MTF in Sweden, the Shares will have to be distributed to the public in order to meet the listing requirements of such MTF. Such distribution may take place by way of a secondarysale of the Shares in the Company to a larger number of shareholders. However, if such secondary sale proves insufficient to meet the requirements of the MTF, a new share issue may need to be carried out resulting in a dilution (inrespect of number of shares) of the existing (at the time of the issue) shareholders' holding in the Company. As such new share issue would be made on market conditions, there would however be no financial dilution of the Shares.

The Company may need further equity in the future, inadequate participation in any future share issue on the part of investors may pose a risk to the solvency of the Company until such share issue has been completed. Investorsthat do not participate in future share issues will risk dilution of their ownership interests. A capital need may for example arise upon a future refurbishment of the Property, or other necessary investments pertaining to theProperty, if the costs are not funded by a bank or another debt provider.

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Risk factors


Risks relating to amended or new legislation

This document is based on Swedish law in force at the date of this Presentation. No assurance can be given on the impact of any possible future legislative measures, regulations, changes or modifications to administrative practicesor case law.

The factors mentioned above are not comprehensive and there may be other risks that relate to or may be associated with an investment in the Company.

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This presentation (hereinafter referred to as the “Presentation”) has been prepared exclusively for information purposes, and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.

This Presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on current expectations, estimates and projections. Such forward-looking information and

statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. We cannot give any assurance as to the correctness of such information and statements.

Several factors could cause the actual results, performance or achievements of the companies mentioned herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in

this Presentation, including, among others, risks or uncertainties associated with the company’s business, segment, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business

conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialize, or

should underlying assumption prove incorrect, actual results may vary materially from those described in this document. We do not intend, and do not assume any obligation, to update or correct the information included in this Presentation.

There may have been changes in matters which affect the companies herein subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is

correct as of any time subsequent to the date hereof or that the affairs of the company/companies have not since changed, and we do not intend, and do not assume any obligation, to update or correct any information included in this Presentation.

The contents of this Presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

We make no undertaking, representation or warranty, express or implied, regarding the accuracy or completeness of the information (whether written or oral and whether included in this Presentation or elsewhere), whether such information was received through

us or otherwise. We expressly disclaim any liability whatsoever in connection with the matters described herein.

Please see our website www.arctic.com for further disclaimers and disclosures.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court AS exclusive venue.

INVESTOR PRESENTATION - Nordnet

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