Stockholm operation - residential units Zdravko Markovski, Head of JM Residential Stockholm and JM Production
JM Residential Stockholm SEKm January September 2007 2006 Full Year 2006 Income 3,596 3,302 4,707 Operating profit 788 579 894 Operating margin (%) 21.9 17.5 19.0 Number of available building rights 12,100 12,000 12,300 Strong sales Increased prices Cost control Capacity shortage Stronger competition over building rights Improvement of margins Very high return on operating capital Capital Markets day 27 november, 2007 2
Sold residential units Stockholm Number 2100 1800 1,968 1,754 1,631 1500 1200 900 600 1,542 1,258 1,271 1,267 300 0 2004 2005 2006 Q3 2007 Q1-Q3 Q4 Capital Markets day 27 november, 2007 3
Housing starts residential units Stockholm Number 2100 1800 1,706 1,937 1,770 1500 1200 900 600 1,150 1,134 1,246 1,359 300 0 2004 2005 2006 Q3 2007 Q1-Q3 Q4 Capital Markets day 27 november, 2007 4
Tenant-owned apartment prices in Stockholm Tenant-owned apartment prices in Stockholm county 1997-2007 quarter 3, advertised prices SEK/m 2 70000 60000 50000 40000 30000 20000 10000 0 Q 1 1997 Q 3 Q 1 1998 Q 3 Q 1 1999 Q 3 Q 1 2000 Q 3 Q 1 2001 Q 3 Q 1 2002 Q 3 Q 1 2003 Q 3 Q 1 2004 Q 3 Q 1 2005 Q 3 Q 1 2006 Q 3 Q 1 2007 Q 3 Total inner city High price, Östermalm Suburbs Periphery South Periphery North Source: Tyréns Temaplan AB/ Erik Olsson Fastighetsförmedling AB Capital Markets day 27 november, 2007 5
Demographic developments vs housing production Stockholm Number 30000 25000 20000 15000 10000 5000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Population increase Completed homes Capital Markets day 27 november, 2007 6
% JM's tenant-owned apartments available for sale in different size intervals Stockholm 50 45 40 35 30 25 20 15 10 5 0 30-50 51-70 71-90 91-110 111-130 131-150 >150 Sq.m. 2003 2004 2005 2006 Q2-07 Capital Markets day 27 november, 2007 7
% 60 JM's tenant-owned apartments available for sale in different price brackets Stockholm 50 40 30 20 10 0 < SEK 1m SEK 1-2m SEK 2-3m SEK 3-4m > SEK 4m 2003 2004 2005 2006 Q2-07 Capital Markets day 27 november, 2007 8
100% Type of housing during life 80% Young adults Modern families with children Modern seniors 60% Move from home First tenant-owned apartment Growing family - singlefamily home Shrinking family return to tenant-owned apartment Often dual household 40% X X X 20% 0% Rented apartment Tenant-ownership Single-family home - other 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 Capital Markets day 27 november, 2007 9
Young adults Large social power Experience-driven Personal history is status symbol Friends among the most important "Café generation" becomes "home generation" Not overgrown young people, just want a different adult life Source: Opinonbengal Capital Markets day 27 november, 2007 10
Modern family with children "Sweden's most attractive target group" Reproduce own childhood Weekends are sacred Include children in old life Strong desire to spend on experiences Telecom pioneers Source: Opinonbengal Capital Markets day 27 november, 2007 11
Seniors don't feed the pigeons "Good life" - health and harmony Underestimated target group Redefined identity; roll reversals occur Spenders - nothing left for the children Dreams of travel, experiences, housing Source: Opinonbengal Capital Markets day 27 november, 2007 12
A few current trends Less interest in kitchen and bathroom. Instead we devote more money and time to Capital Markets day 27 november, 2007 13
The home - a performance arena Interest in interior design flourishing in families with children After a life with focus on friends, now time to build a home with two incomes and a new focus on pleasure for the family as goal Today more people can afford to spend more on themselves. Income growth and the economic upturn have also given families with children more freedom The home is a performance arena for the family Capital Markets day 27 november, 2007 14
The home an entertainment arena The need to gather the family in a secure atmosphere in the midst of a hectic life drives the trend for an increased focus on experiences at home The good times have increased the demand for "entertainment tools" at home which is relatively new among families with children Families with children with a "bonus room" furnish it as a home theater, game room, dance room or playroom Capital Markets day 27 november, 2007 15
The home furnishing market for seniors is expected to increase Most players in the market see an increase in consumption of home furnishings as a probable development. During renovation they prefer to do one room at a time, For example the bathroom during one year and the kitchen the next year Combination of old things, modern design and technology perceived as an interesting part of the market More materialistic with purchases of home furnishing than during other phases in life. They want the best Capital Markets day 27 november, 2007 16
Larger ongoing project - Stockholm Bolinder Strand Hägernäs Räknestickan Järvastaden Silverdal Frösunda Kojan Kvarnholmen Plomben Liljeholmskajen Långbro Hammarby Sjöstad Hotellviken Capital Markets day 27 november, 2007 17
Frösunda - Solna Total of about 750 residential units 477 started, including stage 5 with 114 residential units during Q3 2007 Completion 2011 Capital Markets day 27 november, 2007 18
Liljeholmskajen - Stockholm Total of about 2 700 residential units 1,212 started, including stage 11 with 42 residential units during Q2 2007 Completion 2011 Capital Markets day 27 november, 2007 19
Bolinder Strand - Järfälla Total of about 600 residential units 480 started, including stage 10 with 46 residential units during Q2 2007 Completion 2011 Capital Markets day 27 november, 2007 20
Långbro - Stockholm Total of about 760 residential units 490 started, including 76 during Q2 2007 Capital Markets day 27 november, 2007 21
Plomben - Stockholm Total of about 400 residential units 113 started during Q3 07 Capital Markets day 27 november, 2007 22
Järvastaden Solna - Sundbyberg Total of about 2,000 residential units 91 started during Q3 2007 Capital Markets day 27 november, 2007 23
Kvarnholmen - Nacka Total 300,000 sq.m. residential and commercial, including about 2,100 residential units. Expansion period 2008-2018 Capital Markets day 27 november, 2007 24
Telefonplan - Stockholm Total of about 300 residential units 113 started Q3 2007 Capital Markets day 27 november, 2007 25
Räknestickan - Vällingby Total of about 280 residential units 137 started including 87 residential units during Q3 2007 Capital Markets day 27 november, 2007 26
Silverdal - Sollentuna Total of about 400 residential units 271 started including 66 residential units during Q2 2007 Capital Markets day 27 november, 2007 27
Hägernäs - Täby Total of about 800 residential units 481 started including stage 9 with 50 residential units in Q2 2007 Completion 2010 Capital Markets day 27 november, 2007 28