JM Group. Sweden. Norway. Finland. Belgium 3 % 19 % 78 % 0 % 12-month period 2) SEK 301 per share

Transcription

1 Interimreport 2017

2 JM Group Revenue: SEK 16.7 billion Total assets: SEK 13.5 billion No. of building rights: 34,600 No. of employees: 2,538 Market Cap: SEK 21.3 billion 2) 19 % Norway 78 % Sweden 3 % Finland 0 % Belgium 12-month period 2) SEK 301 per share

3 Group Summary January June 2017 Revenue increased to SEK 8,644m (7,727) Operating profit increased to SEK 1,188m (893) SEK m % Operating margin increased to 13.7 percent (11.6) Gains of property sales SEK 14m (-22) According to segment reporting July/June 2016/2017 Operating profit Operating margin 2) 12-month period 2)

4 Group Summary January June 2017 Profit before tax increased to SEK 1,467m 2) (80 Earnings per share increased to SEK (8.40) Return on equity increased to 43.6 percent (27.5) According to IFRIC 15 2) Of which SEK 275m from the sale of participations in Småa AB Kajplats 6, Liljeholmen 199 residential units Seglet, Lomma 56 residential units

5 Group Summary January June 2017 Number of residential units sold 1,735 (1,958) Number of housing starts 1,719 (1,772) Lower level of housing starts in JM International during the first six months higher level during the remainder of the year Cash flow from operations was SEK 1,294m (1,487) Residential building rights portfolio 34,600 (30,400) Tegelbruket, Upplands Väsby 44 residential units Tapiolan Taika, Esbo, Finland 40 residential units

6 Operating profit January - June Operating profit, SEK m JM Residential Stockholm JM Residential Sweden JM International JM Property Development 24 5 JM Construction Hyllie Gränd, Malmö 59 residential units Group-wide expenses Total as stated in segment reporting 1, Restatement JM International Total according to IFRIC 15 1, Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting

7 Continued stable development in all markets Demand in Sweden and Norway continued to be stable during the first six months Positive development in Stockholm continued strong interest in our projects Housing operations in the rest of Sweden stronger revenue, profit and margin In Norway and Finland operations are developing at a stable rate The percentage of sold/reserved residential units in relation to ongoing production 75 % (83) high level

8 SEK/sq.m. Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö Source: Mäklarstatistik and WSP

9 Number of units ,600 Good level of sold residential units 1, , , JM Residential Stockholm JM Residential Sweden JM International JM Property Development H1 H

10 Number of units , Good level of housing starts 1,745 1,336 1,228 1, JM Residential Stockholm JM Residential Sweden JM International JM Property Development H1 H

11 Kajplats Kvarnholmen Nacka No. of residential units Housing starts Completed in

12 Stadsporten/Borggården, Kongahälla Kungälv No. of residential units 137 Housing starts Completed in

13 Semshagen Tønsberg, Norway No. of residential units 52 Housing starts Completed in

14 Number 140 Average number of housing starts per phase, units in apartment blocks Q Q Q Q Q Q Q Q Q Stockholm Sweden International Average value, total

15 7,641 residential units in current production Number Q Q4 Q Q JM Residential Stockholm Normal level sold/reserved Percentage sold/reserved implicates low risk in current production in 2017 Q4 Q Q Q4 JM Residential Sweden Q Q Q4 Q JM International Percentage of sold/reserved in current production, Group (%) 100% 80% 60% 40% 20% 0% Total Including 416 rental and residential care units within JM Property Development not included in percentage sold/reserved

16 Residential units in current production JM Group 30 June June Dec 2016 Number of residential units 7,641 7,081 7,984 Number of residential units sold 4,720 4,458 4,959 Number of residential units reserved 681 1, Sold residential units, % Reserved residential units, % Sold/reserved residential units, % Completed production, no. of unsold units 2) including in the balance sheet Including rental and residential care units within JM Property Development not included in percentage sold/reserved ) After final occupancy according to plan

17 JM Residential Stockholm January - June Full-year SEK m Revenue 3,718 3,445 7,162 Operating profit ,295 Operating margin, % Number of available building rights 13,000 12,100 13,000 Number of residential units in current production 3,598 3,237 3,786 Of which property sales Svedmyra, Enskede, Stockholm, 66 residential units Stable demand Strong sales Positive development with good profitability Cash flow is in balance taking into consideration decrease in development properties

18 JM Residential Sweden January - June Full-year SEK m Revenue 2,299 1,993 3,820 Operating profit Operating margin, % Number of available building rights 10,000 9,600 9,700 Number of residential units in current production 2,279 2,075 2,240 Of which property sales Stable demand Strong sales Stronger revenue, profit and margin Cash flow in balance Kung Oskar, Lund 50 residential units

19 JM International January - June Full-year SEK m Revenue 1,829 1,667 3,477 of which JM Norway 1,566 1,487 3,056 Operating profit of which JM Norway Operating margin, % of which JM Norway Number of available building rights 10,700 8,000 8,900 Number of residential units in current production 1,348 1,431 1,542 Of which property sales Stable demand Low level of housing starts in Norway in line with plan increasing percentage during the remainder of the year Improvement in Finland Cash flow in balance Orrelia, Askøy, Norge 19 residential units

20 JM Property Development January - June Full-year SEK m Revenue Operating profit Number of available building rights Number of residential units in current production Of which property sales The completed Dalénum rental project consisting of 97 apartments is held in JM s balance sheet Ongoing production in three rental projects in JM s balance sheet: Tjärtunnan, Stureby, 187 apartments Spaken, Hägernäs, Täby, 136 apartments Alphyddan, Nacka, 93 student apartments 416 rental units and residential care units in current production Rental unit project Spaken in Hägernäs, Täby

21 JM Construction January - June Full-year SEK m Revenue 1, ,665 Operating profit Operating margin, % Of which internal Good demand but tough competition Solid orders Somewhat increasing revenue but lower margin Cash flow restricted by temporary increase in working capital Slussen, Stockholm

22 Available building rights portfolio No. of building rights Region 06/30/ /30/2016 Stockholm 13,900 2) 12,800 2) Malmö/Lund 3,600 3,500 Gothenburg 3) 3,200 2,800 Uppsala 4) 3,200 3,300 Norway 7,800 5,900 Helsinki 2,700 1,900 Belgium Total 34,600 30,400 Rounded to the nearest hundred 2) Of which 900 and 700 building rights for rental units and residential care units 3) West region 4) East region

23 Somewhat lower level of development properties Building rights in Balance Sheet SEK m Jan-Jun 2017 Opening balance 5,988 6,802 7,067 7,121 Plus 2,273 2,695 1, Minus -1,459-2,430-1, Closing balance 6,802 7,067 7,121 6,

24 Project properties SEK m 06/30/ /30/ /31/2016 Properties under development Fully developed rental unit properties Fully developed commercial properties Total Dalénum, Lidingö, 97 apartments

25 Approx. 4 years production in Balance Sheet No. of building rights 06/30/2017 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 7,500 1, JM Residential Sweden 5,700 1, JM International 4, JM Property Development Group 18,000 4, Residential building rights 2) 12-month period 3) Guideline value 5 years

26 67 unsold residential units in Balance Sheet, SEK 269m SEK m Q Q Q

27 Cash flow Cash flow statement, SEK m 2016 Q Q Q From operating activities 2) 3) , From investing activities From financing activities Total cash flow for the quarter , Cash and cash equivalents end of period 1,282 1,177 1,520 2,619 2,211 Of which net investment project properties ) Of which net investment development properties ) Of which paid tax

28 Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 1,5 Equity/Assets ratio 38 percent (36) Available liquidity was SEK 5,011m (4,082) of which cash and cash equivalents SEK 2,211m (1,282) ,5 0 Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) ,5 Credit lines of SEK 2,400m have an average maturity of 2.0 years (1.8) June 30, 2017 Net interest-bearing liability(+)/receivable(-) Debt/equity ratio Buy-back of own shares for SEK 125m during the second quarter Non interest-bearing deferred payments for property acquisitions amounted to SEK 497m (534)

29 Net financial items January - June SEK m Financial income 1 12 Sale of participations in Småa AB Financial income Interest expenses Interest expense pensions Financial expenses Net financial items

30 Components of profit/loss housing business Percentage of completion method (gross) 2017 (Q1 2017) Cost-based effect SEK 391m (350) Revaluation effect SEK 367m (414) + + Sales effect SEK 65m (5) Always positive Usually positive Positive/negative Recognized expenses contribution margin (for the current period). = Changed assessment about forecast total contribution margin and/or total cost of a project that involves revaluation of recognized profit/loss from earlier periods. Profit/loss for the period SEK 823m (769) Change in the relationship between stage of completion and sales rate in a period (incoming outgoing) (Adjustment of accumulated profit for unsold homes)

31 Revaluation effects housing business Mkr 2016 Q Q Q Group Business segment Stockholm Sweden International Total Q The net of positive and negative revaluation effects in residential projects during 2017 totaled SEK 367m, which indicates a continued stable assessment of market conditions for the actual forecast period

32 JM today Customer focused strong brand 34,600 building rights in attractive locations Fundamentally favorable prospects Sustainable urban planning Efficient management system Investments in digital support Strong balance sheet focus on cash flow Well balanced risk profile Skills development prioritized Kajplats 6, Liljeholmskajen, Stockholm