Interimreport 2017
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 2 2017-07-14
Group Summary January June 2017 Revenue increased to SEK 8,644m (7,727) Operating profit increased to SEK 1,188m (893) SEK m 2 500 2 000 1 500 % 20 18 16 14 12 Operating margin increased to 13.7 percent (11.6) Gains of property sales SEK 14m (-22) According to segment reporting 1 000 500 0 2012 2013 2014 2015 2016 July/June 2016/2017 Operating profit Operating margin 2) 12-month period 2) 10 8 6 4 2 0 3 2017-07-14
Group Summary January June 2017 Profit before tax increased to SEK 1,467m 2) (80 Earnings per share increased to SEK 16.90 (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 4 2017-07-14
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 5 2017-07-14
Operating profit January - June Operating profit, SEK m 2017 2016 JM Residential Stockholm 710 600 JM Residential Sweden 339 219 JM International 126 74 JM Property Development 24 5 JM Construction 17 21 Hyllie Gränd, Malmö 59 residential units Group-wide expenses -28-26 Total as stated in segment reporting 1,188 893 Restatement JM International 37-69 Total according to IFRIC 15 1,225 824 Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting 6 2017-07-14
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 7 2017-07-14
SEK/sq.m. Prices on the existing home market 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Tenant-owned apartment prices in cities, existing home market 2008 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö 2017 8 2017-07-14 Source: Mäklarstatistik and WSP
Number of units 1 800 1 600 1,600 Good level of sold residential units 1,552 1 400 1 200 1 000 800 600 745 752 1,273 648 1,318 654 843 383 973 479 400 200 0 855 800 742 625 664 669 460 494 324 54 0 0 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 JM Residential Stockholm JM Residential Sweden JM International JM Property Development H1 H2 9 2017-07-14
Number of units 2 000 1 800 1 600 1 400 1 200 1 000 800 600 1,667 914 Good level of housing starts 1,745 1,336 1,228 1,090 685 689 782 877 355 407 400 200 0 753 754 655 647 679 543 229 427 470 286 54 0 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 JM Residential Stockholm JM Residential Sweden JM International JM Property Development H1 H2 10 2017-07-14
Kajplats Kvarnholmen Nacka No. of residential units 1 500 Housing starts 2017 119 Completed in 2020 11 2017-07-14
Stadsporten/Borggården, Kongahälla Kungälv No. of residential units 137 Housing starts 2017 79 Completed in 2018 12 2017-07-14
Semshagen Tønsberg, Norway No. of residential units 52 Housing starts 2017 32 Completed in 2018 13 2017-07-14
Number 140 Average number of housing starts per phase, units in apartment blocks 120 100 106 80 60 66 56 40 32 20 0 2014 Q3 2014 Q4 2014 Q1 2015 2015 Q3 2015 Q4 2015 Q1 2016 2016 Q3 2016 Q4 2016 Q1 2017 2017 Stockholm Sweden International Average value, total 14 2017-07-14
7,641 residential units in current production Number 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Q3 2013 Q4 Q1 2014 Q3 2014 JM Residential Stockholm Normal level sold/reserved Percentage sold/reserved implicates low risk in current production in 2017 Q4 Q1 2015 Q3 2015 Q4 JM Residential Sweden Q1 2016 Q3 2016 Q4 Q1 2017 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 15 2017-07-14
Residential units in current production JM Group 30 June 2017 30 June 2016 31 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 1,149 886 Sold residential units, % 65 66 65 Reserved residential units, % 10 17 12 Sold/reserved residential units, % 75 83 77 Completed production, no. of unsold units 2) 91 92 70 - including in the balance sheet 67 68 64 Including rental and residential care units within JM Property Development not included in percentage sold/reserved 416 338 416 2) After final occupancy according to plan 16 2017-07-14
JM Residential Stockholm January - June Full-year SEK m 2017 2016 2016 Revenue 3,718 3,445 7,162 Operating profit 710 600 1,295 Operating margin, % 19.1 17.4 18.1 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 6 - - 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 17 2017-07-14
JM Residential Sweden January - June Full-year SEK m 2017 2016 2016 Revenue 2,299 1,993 3,820 Operating profit 339 219 480 Operating margin, % 14.7 11.0 12.6 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 - 0 37 Stable demand Strong sales Stronger revenue, profit and margin Cash flow in balance Kung Oskar, Lund 50 residential units 18 2017-07-14
JM International January - June Full-year SEK m 2017 2016 2016 Revenue 1,829 1,667 3,477 of which JM Norway 1,566 1,487 3,056 Operating profit 126 74 204 of which JM Norway 123 96 227 Operating margin, % 6.9 4.4 5.9 of which JM Norway 7.9 6.5 7.4 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 - -23-23 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 19 2017-07-14
JM Property Development January - June Full-year SEK m 2017 2016 2016 Revenue 37 62 142 Operating profit 24 5 30 Number of available building rights 900 700 900 Number of residential units in current production 416 338 416 Of which property sales 8 1 1 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 20 2017-07-14
JM Construction January - June Full-year SEK m 2017 2016 2016 Revenue 1,015 807 1,665 Operating profit 17 21 43 Operating margin, % 1.7 2.6 2.6 Of which internal 254 247 514 Good demand but tough competition Solid orders Somewhat increasing revenue but lower margin Cash flow restricted by temporary increase in working capital Slussen, Stockholm 21 2017-07-14
Available building rights portfolio No. of building rights Region 06/30/2017 06/30/2016 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 200 200 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 22 2017-07-14
Somewhat lower level of development properties Building rights in Balance Sheet SEK m 2014 2015 2016 Jan-Jun 2017 Opening balance 5,988 6,802 7,067 7,121 Plus 2,273 2,695 1,903 737 Minus -1,459-2,430-1,849-966 Closing balance 6,802 7,067 7,121 6,892 23 2017-07-14
Project properties SEK m 06/30/2017 06/30/2016 12/31/2016 Properties under development 548 453 583 Fully developed rental unit properties 225 - - Fully developed commercial properties 18 42 19 Total 791 495 602 Dalénum, Lidingö, 97 apartments 24 2017-07-14
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 1,844 4.1 JM Residential Sweden 5,700 1,368 4.2 JM International 4,700 693 6.8 JM Property Development 100 229 0.4 Group 18,000 4,134 4.4 Residential building rights 2) 12-month period 3) Guideline value 5 years 25 2017-07-14
67 unsold residential units in Balance Sheet, SEK 269m SEK m 300 247 240 233 269 200 205 100 0 2016 Q3 2016 Q4 2016 Q1 2017 2017 26 2017-07-14
Cash flow Cash flow statement, SEK m 2016 Q3 2016 Q4 2016 Q1 2017 2017 From operating activities 2) 3) 886 102 368 1,001 293 From investing activities -3-2 -1 307-3 From financing activities -784-207 -25-209 -697 Total cash flow for the quarter 99-107 342 1,099-407 Cash and cash equivalents end of period 1,282 1,177 1,520 2,619 2,211 Of which net investment project properties -58-57 -72-86 -104 2) Of which net investment development properties 241 7-501 122-15 3) Of which paid tax -99-90 -89-99 -121 27 2017-07-14
Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m 1 500 times 1,5 Equity/Assets ratio 38 percent (36) 1 000 1 Available liquidity was SEK 5,011m (4,082) of which cash and cash equivalents SEK 2,211m (1,282) 500 0 0,5 0 Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) -500-274 -0,5 Credit lines of SEK 2,400m have an average maturity of 2.0 years (1.8) -1 000-1 2013 2014 2015 2016 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) 28 2017-07-14
Net financial items January - June SEK m 2017 2016 Financial income 1 12 Sale of participations in Småa AB 275 - Financial income 276 12 Interest expenses -18-19 Interest expense pensions -16-16 Financial expenses -34-35 Net financial items 242-23 29 2017-07-14
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). 30 2017-07-14
Revaluation effects housing business Mkr 2016 Q3 2016 Q4 2016 Q1 2017 2017 Group 333 327 373 414 367 Business segment Stockholm Sweden International Total Q1 2017 238 135 41 414 2017 158 171 38 367 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. 31 2017-07-14
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 32 2017-07-14