Jm Ab · OMXSTO:JM
Jm Ab — H1 2005 Earnings Presentation
27 slides from Jm Ab's earnings presentation, Aug 16, 2005
Slide 1: JM Group Interim Report January - June 2005
JM Group Interim Report January - June 2005 August, 2005
Slide 2: Group Summary
Group Summary January – June 2005 • Net sales increased by 10 percent to SEK 4,592m (4,165) • Profit after financial items improved to SEK 364m (279) • Property sales of SEK 438m (693) provided capital gains of SEK 69m (86) 2005-08-16 2
Slide 3: Group Summary
Group Summary January – June 2005 • Number of sold residential units 2,124 (2,393) • Number of housing starts 1,861 (1,842) • Earnings per share for the second quarter of 2005 totaled SEK 5.20 (3.30) • Return on equity for the past 12-month period totaled 17% • Redemption of shares for SEK 966m duri
Slide 4: Good market and sales
Good market and sales • Good demand on all of JM's housing markets • Continued strong sales for residential units in the form of signed contracts • Improved profit and margin in project development business 2005-08-16 4
Slide 5: Continued streamlining, further customization
Continued streamlining, further customization • Continued priority for efficiency enhancements and reduced costs • Cash flow from operations during the first six months of the year totaled SEK 1,255m (871) • During the second quarter JM launched a uniform program for optional extras for customers in
Slide 6: Continued good demand throughout Sweden
Continued good demand throughout Sweden Tenant-owned apartment prices in cities, second-hand market 1997 – Q2 2005 SEK/sq.m. 40000 35000 30000 25000 20000 15000 10000 5000 0 97 98 99 00 01 02 03 04 05 3 3 3 3 3 3 3 3 Q Q Q Q Q Q Q Q 19 19 19 20 20 20 20 20 20 1 1 1 1 1 1 1 1 1 Q Q Q Q Q Q Q Q Q Sthl
Slide 7: Strong home sales figures
Strong home sales figures Group No. of units sold 4,315 4 500 4 000 3,189 3 500 3 000 2,511 2 500 2 000 1 500 2 393 1 000 2 124 1 251 1 275 500 0 2002 2003 2004 Jan-Jun 2005 Q2 2005-08-16 7
Slide 8: High level of production starts
High level of production starts Group Number 3,943 4 000 3 500 3 000 2,711 2,714 2 500 2 000 1 500 1 000 1 842 1 861 1 250 500 886 0 2002 2003 2004 Jan-Jun 2005 Q2 2005-08-16 8
Slide 9: JM Residential Stockholm
JM Residential Stockholm January-June Full year SEKm 2005 2004 2004 Net sales 1,885 1,714 3,438 Operating profit 214 134 296 Operating margin (%) 11.4 7.8 8.6 Number of available building rights 9,500 10,000 9,100 • Favourable sales • Cost control • Improved margins • Strong results in concluded pro
Slide 10: JM Residential Sweden
JM Residential Sweden January-June Full year SEKm 2005 2004 2004 Net sales 1,461 1,189 2,417 Operating profit 126 93 202 Operating margin (%) 8.6 7.8 8.4 Number of available building rights 7,900 7,400 7,400 • Favourable sales • Sales growth • Stable margins and high return on operating capital • Go
Slide 11: JM International
JM International January-June Full year SEKm 2005 2004 2004 Net sales 853 835 1,866 Operating profit 67 50 117 Operating margin (%) 7.9 6.0 6.3 Number of available building rights 5,350 5,100 5,400 • Stable prices • Large supply of new housing in Norway • Strong competition for building rights 2005-
Slide 12: JM Property Development
JM Property Development January-June Full year SEKm 2005 2004 2004 Net sales 130 140 276 Operating profit 28 105 201 • Stabilized rental levels in Stockholm • Production start for 10,000 sq.m. office space in Frösunda • Development of residential portfolio in Älta/Vaxholm • Sales activities began fo
Slide 13: JM Production
JM Production January-June Full year SEKm 2005 2004 2004 Net sales 480 405 931 Operating profit 24 22 43 Operating margin (%) 5.0 5.4 4.6 • Stable development • Cost control • Stable orders • Settlement of old external uncollected account with positive effect on earnings during Q2 2005-08-16 13
Slide 14: Change in development properties
Change in development properties Building rights in balance sheet Jan-June SEKm 2002 2003 2004 2005 Opening balance 4,048 3,871 3,631 2,971 Plus 629 664 275 327 ) Minus -806 * -904 -935 -564 Closing balance 3,871 3,631 2,971 2,734 *) of which depreciation SEK 211m 2005-08-16 14
Slide 15: Available building rights Q2 2005
Available building rights Q2 2005 Region No of Building rights Stockholm 9,500 Gothenburg 2,300 Malmö/Lund 2,600 Uppsala 1,500 Rest of Sweden 1,500 Oslo/Bergen 4,150 Copenhagen 850 Brussels 350 Total approx. 22,750 2005-08-16 15
Slide 16: Fewer unsold residential units in the balance sheet
Fewer unsold residential units in the balance sheet SEKm 350 300 250 200 150 100 50 0 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 2005-08-16 16
Slide 17: Strong cash flow Q2 2005
Strong cash flow Q2 2005 Group Q1 Q2 Q3 Q4 Q1 Q2 Cash Flow Statement, SEKm 2004 2004 2004 2004 2005 2005 *) Cash flow from operating activities -191 1,062 293 997 516 739 Cash flow from investment activities 0 -2 -9 0 -40 2 Cash flow from financing activities -28 -697 -336 -136 36 -1,756 Total cash
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet SEKm 2005-06-30 2004-06-30 2004-12-31 Assets Project properties 2,071 2,416 2,246 Development properties 2,734 3,275 2,971 Other assets 2,595 2,676 3,035 Total 7,400 8,367 8,252 Shareholders' equity and liabilities Shareholders' equity 2,590 3,197 3,465 Other liabilities 4
Slide 19: Project properties for development
Project properties for development Occupancy rate Book value SEKm annual rent 2005-06-30 2004-06-30 Full year 2004 Residential units (tenancy rights) 99% 906 1,221 1,078 Commercial properties under development 64% 50 639 671 Fully developed commercial properties 73% 1,115 556 497 Total 2,071 2,416 2
Slide 20: Reduced interest-bearing net debt and debt/equity ratio
Reduced interest-bearing net debt and debt/equity ratio SEKm times 6000 6 5000 5 4000 4 3000 3 2000 2 1000 1 0 0 2000 2001 2002 2003 2004 June 2005 interest-bearing net debt debt/equity ratio 2005-08-16 20
Slide 21: Liljeholmen
Liljeholmen Stockholm • Residential units: 2,500 • Production start: 2001 • Phase 3, 169 units, 1-5 rooms, 33-100 sq.m. approx. SEK 24,800/sq.m. • Phase 4, 144 units, 1-5 rooms, 34-124 sq.m. approx. SEK 26,700/sq.m. • Completion: 2012 2005-08-16 21
Slide 22: Frösunda
Frösunda Solna • Residential units: 700 • Production start: autumn 2003 • Phase 1, 96 units 2-6 rooms, 51-165 sq.m. approx. SEK 19,000/sq.m. • Phase 2, 84 units 2-5 rooms, 48-153 sq.m. approx. SEK 21,000/sq.m. • Completion: 2011 2005-08-16 22
Slide 23: Lomma hamn
Lomma hamn Lomma • Residential units: 730 • Production start: 2004 • Phase 1, 54 units, 2-5 rooms, 51-166 sq.m. approx. SEK 20,600/sq.m. • Phase 2, 43 units, 1-4 rooms, 44-143 sq.m. approx. SEK 25,600/sq.m. • Completion: 2012 2005-08-16 23
Slide 24: Dockan area
Dockan area Malmö • Residential units: 500 • Production start: April 2003 • Phase 2, 75 units 2-4 rooms, 50-131 sq.m. approx. SEK 19,400/sq.m. • Phase 3, 76 units 2-4 rooms, 50-131 sq.m. approx. SEK 21,100/sq.m. • Completion: 2012 2005-08-16 24
Slide 25: Industristaden
Industristaden Uppsala • Residential units: 300 • Production start: November 2003 • Phase 2, 42 units 1-4 rooms, 37-108 sq.m. approx. SEK 16,300/sq.m. • Phase 3, 42 units 2-4 rooms, 64-107 sq.m. approx. SEK 17,000/sq.m. • Completion: 2010 2005-08-16 25
Slide 26: Sannegårdshamnen
Sannegårdshamnen Gothenburg • Residential units: 450 • Production start: February 2004 • Phase 2, 56 units 1-5 rooms, 35-156 sq.m. approx. SEK 22,500/sq.m. • Phase 3, 63 units 1-5 rooms, 33-141 sq.m. approx. SEK 22,700/sq.m. • Completion: 2009 2005-08-16 26
Slide 27: JM looking ahead
JM looking ahead • Customer-focused – strong brand • Market leader – tenant-owned units • Almost 23,000 residential building rights in attractive locations • Strong balance sheet and financial flexibility • Cash flow focus – from project to Group • Industrialized process and attractive homes • Housi