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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933), AUSTRALIA, JAPAN, CANADA, NEW ZEALAND, SOUTH AFRICA, HONG KONG, SWITZERLAND, SINGAPORE OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Serneke Group AB (publ), reg. no. 556669-4153, (the "Company") today announces that the written procedure initiated on 4 June 2020 of its maximum SEK 1,000,000,000 senior unsecured callable floating rate bonds 2018/2021 (ISIN: SE0011256338) (the "Bonds") with SEK 700,000,000 currently outstanding has been successfully concluded.

Serneke and Magnolia Bostad have signed a turnkey contract for 414 housing units in Knivsta. The contract is worth approximately SEK 480 million and tenants are scheduled to commence moving in during the second half of 2023.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933), AUSTRALIA, JAPAN, CANADA, NEW ZEALAND, SOUTH AFRICA, HONG KONG, SWITZERLAND, SINGAPORE OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Serneke Group AB (publ), reg. no. 556669-4153, (the "Company") is requesting the approval from holders of its maximum SEK 1,000,000,000 senior unsecured callable floating rate bonds 2018/2021 (ISIN: SE0011256338) (the "Bonds") with SEK 700,000,000 currently outstanding to extend the maturity and to amend certain terms and conditions.

The following resolutions in brief were adopted at the Annual General Meeting of Serneke Group AB (publ) (the "AGM") on May 5, 2020:

KICK-OFF FOR A NEW ORGANIZATION 

January-March 2020

• Order bookings amounted to SEK 2,975 million (1,177) and the order backlog was SEK 10,576 million (5,973)
• Income amounted to SEK 1,814 million (1,480)
• The operating loss was SEK 149 million (profit 18), of which non-recurring expenses amounted to SEK 135 million
• At the end of the period, available cash and cash equivalents totaled SEK 587 million
• Cash flow from operating activities amounted to an outflow of SEK 233 million (262)
• Cash flow for the period amounted to an outflow of SEK 50 million, of which Karlatornet had a negative impact by SEK 140 million
• The loss for the period amounted to SEK 106 million (profit 10)
• The sale of the Karlatornet Tower has been postponed as a direct consequence of the uncertain situation in the global financial market caused by the Coronavirus pandemic. The level of activity in the project has been reduced to a minimum, with expenses of SEK 58 million associated with the project having burdened the quarter.
• The reorganization process is progressing, and efficiency measures are being implemented that will release about 200 million on an annual basis from the beginning of 2021. These measures will cut expenses throughout the organization and entail as many as 100 full-time employees being served notice of termination. Measures to restructure the organization burdened profit for the quarter by SEK 30 million.

The Serneke 2019 Annual report is available as of today at the Group's website, www.serneke.se.