Press release from Bonava’s extra general meeting

At an extra general meeting of Bonava AB (publ) today on 26 September 2016, the
general meeting resolved to approve the board of directors' proposal on a long
term performance based incentive plan (LTIP 2016) for Bonava. The Plan comprise
of approximately 25 employees consisting of members of the senior management and
other key personnel within the Bonava group.
The incentive plan in brief:

  ·  To participate in LTIP 2016, an own investment in Bonava shares is
required. The participants will be offered to invest a maximum of two months’
salaries, before taxes, in Bonava’s shares of series B. The offer to invest a
maximum of two months’ salaries is an extended investment opportunity for the
participants, which the board of directors deems appropriate considering that
there are no former incentive plans in Bonava.
  ·  Following the defined vesting period of three years, shares of series B in
Bonava will be allocated, free of charge, to the participants provided that
certain conditions are fulfilled, which, in addition to continued employment and
continued shareholding, relates to Bonava’s operating profit (EBIT) and average
return on capital employed (ROCE). Allocation of shares of series B shall,
however, be reduced if the total shareholder return (TSR) on Bonava’s shares of
series B should be negative over the plan’s term.
  ·  The maximum number of shares of series B in Bonava that can be allocated
under LTIP 2016 in total is limited to 338,903.
  ·  Based on a constant share price during the plan’s term, a vesting period of
three (3) years and some additional assumptions, the total cost of LTIP 2016
including social security costs is estimated to amount to maximum approximately
SEK 40 million.

The general meeting also resolved to authorise the board of directors, for the
period until the next annual general meeting, on one or several occasions, to
resolve on execution of acquisition of shares of series B in Bonava. A maximum
of 411,386 shares of series B may be acquired on Nasdaq Stockholm for the
purpose of securing the company’s obligations under the LTIP 2016 and other
incentive plans. The general meeting also resolved on transfer of not more than
338,903 shares of series B in Bonava to participants who under the terms for the
LTIP 2016 are entitled to receive shares of series B and that transfer also may
take place of a maximum of 72,483 shares on Nasdaq Stockholm to cover costs
related to social security costs under LTIP 2016.

For more information, please contact

Ann-Sofi Danielsson, CFO and Head of Investors Relations
ann-sofi.danielsson@bonava.com  (ann-sofi.danielsson@bonava.com%20)
ir@bonava.com
Tel: +46 706 740 720

Evin Khaffaf, Head of Communications
evin.khaffaf@bonava.com
Tel: +46 700 887 133

Bonava is a leading residential development company in Northern Europe. Born out
of NCC, Bonava has been creating homes and neighbourhoods since the 1930’s.
Today Bonava has 1,400 employees and operates in Sweden, Finland, Denmark,
Norway, Germany, St. Petersburg, Estonia and Latvia with sales of SEK 13
billion. Bonava’s shares are listed on Nasdaq Stockholm.

For more information about us: bonava.com (http://www.bonava.com)