H1 2009

• In H1 2009, Nordicom increased its rental income by DKK 8.1 m, from DKK 126.0
m to DKK 134.1 m, which, in light of the current market, is satisfactory and
encouraging in relation to its revised strategy of focusing on cash flow
properties. The vacancy rate of the groups completed investment properties rose
marginally by 0.5% (excluding the newly built residential building Lindholm) in
H1 2009 compared to H1 2008, which was expected in today's market. 

• Operating cash flow for H1 2009 amounts to DKK -58.7 m (H1 2008: DKK -94.8
m), which corresponds to an improvement of DKK 36.1 m compared with the same
period last year. Cash flow from primary operations improved by 43.4 m, while
financial costs increased by DKK 8.7 m. Compared to Q1 2009, cash flow from
operating activities has improved by DKK 4.4 m, and the negative cash flow
relates to the company's development activities and one newly built property. 

• The company has continuously achieved extensions on the short-term debt,
which became due in H1 2009, including the approximately DKK 1bn which was due
on June 30th 2009. The majority of the short-term debt that was extended has
been replaced by new short-term debt. The group's financial resources and
operating liquidity are still conditional on achieving more property sales in
2009 or entering into agreements with the group's mortgage institutions on
refinancing of the company's short-term debt on more advantageous terms. 

• The long-term debt has increased to 57.1% in H1 2009 due to the conversion of
bank debt to mortgage loans, and some loans have been extended. The company is
still prioritising a strategy of converting as much short-term debt into
long-term debt in 2009 as possible. 

• End of June 2009, the market conditions are still difficult and, as a direct
result, write-downs of DKK 60.6 m on completed investment properties have been
carried out. Consequently, Nordicom is going to continue with our present
strategy of increasing the properties' value through building improvements,
rental optimization and optimizing the daily management of the properties,
thereby creating a basis for future positive valuation adjustments of the
investment properties. 

• The change in strategy for Nordicom, which means that in the future the
company will get less involved in green field development and downsize its
activities in the areas of low-energy homes and parking, has, in the course of
H1 2009, gradually been implemented. The new focus combined with difficult
conditions in the developers market - more specifically limited access to
finance and a distinct lack of users has meant a total write-down of the value
of the project portfolio of DKK 133.8 m. 

• Net profit before tax for H1 2009 comprises DKK -284.7 m (H1 2008: DKK 84.4
m). This decrease in profit is primarily due to negative fair value adjustments
and higher interest expenses compared with the same period last year. Profit
from renting out investment properties is still increasing, while the
profitability of development activities has declined significantly. 

• After the balance sheet date the company has sold 3 properties for a total of
DKK 117.7 m which have given rise to an accounting loss of DKK 6 m and a
positive liquidity of DKK 34.5 m. It is the objective to divest further
development properties, alternatively, let them engage in barter transactions
with completed investment properties and it is our expectation that one or more
agreements will fall into place during the H2 2009. 

• In July Nordicom converted mortgage debt of DKK 800 m with one year interest
maturity to two and three year maturities to reduce its interest rate risk and
benefit from more advantageous interest rate conditions. 

• For the accounting year of 2009, we expect a net profit before tax and
valuation adjustments of DKK -40 to -50 m, which is in the lower end of the
range previously announced.