The board of directors of Bonava proposes a long-term incentive plan

The board of directors of Bonava AB (publ) has today resolved to propose that an
extra general meeting of the company resolves to implement a long-term
performance-based incentive plan (“LTIP 2016”). The plan is proposed to 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 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 a 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 approximately SEK 40
million.

The primary reason for implementing LTIP 2016, after the admission to trading of
Bonava's shares on Nasdaq Stockholm in June 2016, is to align the interests of
the shareholders with the interests of the senior management and other key
personnel to ensure maximum long-term increase in value.

The board of directors of Bonava considers that it is appropriate to resolve on
implementing a long-term performance-based incentive plan at an extra general
meeting as there are no former share related incentive plans in Bonava.

The board of directors will shortly issue a notice to an extra general meeting
in Bonava to be held on 26 September 2016 in Stockholm and in connection
therewith publish the board of directors’ complete proposal.


For more information, please contact:

Ann-Sofi Danielsson, CFO and Head of Investor Relations
ann-sofi.danielsson@bonava.com
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/)