Jm Ab · OMXSTO:JM
Jm Ab — Q2 2000 Earnings Presentation
42 slides from Jm Ab's earnings presentation, Aug 22, 2000
Slide 1: The JM Group
The JM Group August 2000 1
Slide 2: The JM Group - Summary
The JM Group - Summary • Swedish market leader in developing tenant owned residencies • Largest building right portfolio in the Nordic region • Real estate portfolio supporting project development • Increased cash flow focus • Strong financial base • High quality profile and trade mark 2000-08-22 2
Slide 3: History and background
History and background 1 1945 Contractor John Mattson establishes John Mattsons Byggnads AB 1965 John Mattson divests the company to AB Industrivärden 1982 JM listed on the Stockholm stock exchange 1987 Skanska acquires Industrivärden´s shareholding and becomes majority owner in JM 1995 Through sale
Slide 4: History and background
History and background 2 1996 Through share sales by major owners, an additional spread of ownership and increased trading is achieved 1997/98 Major structural deal gives an increased equity/assets ratio and flexibility. Establishment in Norway 1999 Continuous sale of developed properties and growth
Slide 5: Comparative advantages of JM
Comparative advantages of JM • Project development - managing the full process • Targeting growth segments of the market • Strong project development competence • Large development property portfolio - attractive locations • Business oriented corporate culture • Quality and environmental focus • Str
Slide 6: JMs Business concept
JMs Business concept To create attractive living and working environments that satisfy individual needs both today and in the future 2000-08-22 6
Slide 7: Strategy: Concentration to core competence
Strategy Concentration to core competence • Long term quality and environmental priority • Growth by organic expansion and acquisitions • Increased focus on housing concepts with high customer value • Selective emphasis on commercial project development • Higher turnover in real estate portfolio • C
Slide 8: JM Development concept
JM Development concept Acquisition Property Conceptual work management General planning Occupancy Project planning Construction Financing Sales/Lease 2000-08-22 8
Slide 9: Value chain
Value chain Value Sales decision Price decision Management Building decision Construction Concept Acquisition decision Time 2000-08-22 9
Slide 10: Financial targets
Financial targets Results Target 99 98 97 96 95 Return on equity (%)* 15 13 12 12 11 12 Treasury bond interest rate +3.5%** 10 11 12 12 13 Dividend as a % of profit after tax (%) 50 50 45 30 42 13 Equity ratio (%) 30 28 27 30 25 24 * Based on the rolling five-year average. ** Treasury bond interest
Slide 11: The JM organization
The JM organization President CEO Legal Affairs Finance CFO Communication Human Resource Business Support Project Development Project Development Project Development Business Development Project Development Residential Sweden Commercial Management International Stockholm Stockholm Properties 2000-08
Slide 12: Population growth and housing starts in Stockholm
Population growth and housing starts for multi-dwelling complexes in Stockholm 25 000 20 000 15 000 10 000 5 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 2000-08-22 12
Slide 13: Population growth and housing starts in Oslo
Population growth and housing starts for multi-dwelling complexes in Oslo 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 2000-08-22 13
Slide 14: Population growth and housing starts in Köpenhamn
Population growth and housing starts for multi-dwelling complexes in Köpenhamn 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 2000-08-22 14
Slide 15: Value development for housing in preferred locations (Stockholm)
Value development for housing in preferred locations (Stockholm) SEK/sqm Tenant-owned apartments Residential properties 2000-08-22 15
Slide 16: Value development for commercial properties in preferred locations
Value development for commercial properties in preferred locations (nominal values) values) SEK/sqm 2000-08-22 16
Slide 17: Value of property portfolio
Value of property portfolio MSEK 10000 9000 8000 7000 Book value 6000 5000 Assessed market 4000 value 3000 2000 1000 0 1995 1996 1997 1998 1999 2000-08-22 17
Slide 18: Important events 2000
Important events 2000 • JM Sells the residential property Träskfloden 15 at Jarlaplan in Stockholm for MSEK 401. 401 Profit MSEK 163 • Divests JM Maskinservice including all production equipment to Cramo for MSEK 75. 75 Profit MSEK 30 2000-08-22 18
Slide 19: Important events 2000
Important events 2000 • Acquisition of land on Kungsholmen, in Stockholm for MSEK 295, 295 45,000 sqm, approx. 300 building rights • Acquisition of Lustgården, Kungsholmen for MSEK 262 approx. 35,000 sqm, office and residents • Acquisition of land in Gustavsberg, in Stockholm for MSEK 350, 350 1,550
Slide 20: The JM Group: Financial summary January - June 2000
The JM Group Financial summary January - June 2000 • Profit after financial items amounted to MSEK 558 (326) • Earnings per share over the past twelve months has been SEK 18 • Return on equity over the past twelve months has been 19 per cent • Profit in project development increased by 80 per cent t
Slide 21: Condensed consolidated income statement
Condensed consolidated income statement January - June Full year MSEK 2000 1999 1999 Net sales 3144 2694 5825 Costs for production and management -2542 -2188 -4770 Gross profit 602 506 1055 Selling and administration costs -240 -218 -395 Gains on the sale of operations 30 - - Gains on the sale of pr
Slide 22: The JM Group - pre tax profit
The JM Group - pre tax profit Profit from sale of Profit before sale of management properties management properties MSEK 600 500 258 400 300 218 200 122 300 100 108 72 0 1998 1999 2000 Jan - June Jan - June Jan - June 2000-08-22 22
Slide 23: Consolidated net sales by business unit
Consolidated net sales by business unit January - June Full year MSEK 2000 1999 1999 Stockholm Residential 1 067 795 1 658 Sweden 818 738 1 562 Stockholm Commercial 750 593 1 436 Business Development/Real Estate 291 385 702 International 323 258 627 Eliminations -105 -75 -160 Consolidated net sales
Slide 24: Consolidated profit by business unit
Consolidated profit by business unit January - June Full year MSEK 2000 1999 1999 Stockholm Residential 145 84 180 Sweden 35 21 72 Stockholm Commercial 67 13 66 Business Development/Real Estate 417 424 716 International 22 9 33 Group-wide costs -36 -45 -77 SPP - surplus 78 - - Operating profit 728 5
Slide 25: Business unit Residential Stockholm
Business unit Residential Stockholm January - June Full year MSEK 2000 1999 1999 Net Sales 1 067 795 1 658 Costs for production and management -860 -668 -1 396 Selling and administration -62 -43 -82 Profit in Stockholm Residential 145 84 180 Key ratios Margin (%) 13,6 10,6 10,9 Operating capital *)
Slide 26: Business unit Sweden
Business unit Sweden January - June Full year MSEK 2000 1999 1999 Net Sales 818 738 1 562 Costs for production and management -737 -675 -1 420 Selling and administration -46 -42 -70 Profit in business unit Sweden 35 21 72 Key ratios Margin (%) 4,3 2,8 4,6 Operating capital *) 557 272 335 Return on o
Slide 27: Business unit Commercial Stockholm
Business unit Commercial Stockholm January - June Full year MSEK 2000 1999 1999 Net Sales 750 593 1 436 Costs for production and management -667 -539 -1 292 Selling and administration -46 -41 -78 Gross profit 37 13 66 Gains on the sale of operations 30 - - Profit in Stockholm Commercial 67 13 66 Key
Slide 28: Business unit Business Development/Real Estate
Business unit Business Development/Real Estate January - June Full year MSEK 2000 1999 1999 Net Sales 291 385 702 Costs for production and management -106 -144 -268 Selling and administration -26 -35 -48 Gross profit 159 206 386 Property sales 258 218 330 Profit in Business Development/Real Estate 4
Slide 29: Sale of management properties
Sale of management properties MSEK Profit 2500 2000 450 1500 380 330 1000 258 135 500 36 0 1996 1997 1998 1999 2000 June 2000 E 2000-08-22 29
Slide 30: Business unit International
Business unit International January - June Full year MSEK 2000 1999 1999 Net Sales 323 258 627 Costs for production and management -277 -237 -554 Selling and administration -24 -12 -40 Profit in business unit International 22 9 33 Key ratios Margin (%) 6,8 3,5 5,3 Operating capital *) 524 411 440 Re
Slide 31: Project development - 12 months rolling net sales
Project development - 12 months rolling net sales NET SALES QUARTERLY (MSEK) 6000 5435 5587 3000 CURRENT 12 MONTHS 5085 4743 5000 (MSEK) 4441 3966 4122 3699 4000 3280 3419 2000 3114 1572 3000 1289 1212 1362 1441 1230 963 970 910 1012 2000 856 1000 630 1000 0 0 3 4 2 3 4 2 3 4 2 98 99 00 Q Q Q Q Q Q
Slide 32: Project development - 12 months rolling profit
Project development - 12 months rolling profit 450 420 QUARTERLY PROFIT 400 (MSEK) 365 CURRENT 12 MONTHS 8,0% 350 PROFIT (MSEK) 330 7,5% CURRENT 12 MONTHS 300 MARGIN (%) 279 6,7% 237 6,5% 250 6,0% 209 5,9% 185 5,3% 200 151 5,1% 129 4,7% 150 129 124 94 102 4,1% 4,0% 100 3,8% 78 84 83 69 3,0% 3,1% 48
Slide 33: Condensed consolidated balance sheet
Condensed consolidated balance sheet MSEK 30/06/2000 30/06/1999 31/12/1999 Assets Management properties 6389 6336 6855 Other fixed assets 256 253 300 Development properties 2900 2364 2611 Other current assets 1517 2310 894 Liquid assets 336 54 390 Total 11398 11317 11050 Equity and liabilities Equit
Slide 34: Development Properties
Development Properties (book value) MSEK 3500 2900 3000 2611 2500 2 020 2000 1500 1000 813 398 480 500 0 1995 1996 1997 1998 1999 2000 June 2000-08-22 34
Slide 35: JM building rights
JM building rights IS IN POSSESSION OF BUILDING RIGHTS FOR MORE THAN 25 000 FUTURE RESIDENCIES ALL WITH 200 000 SQM ATTRACTIVE COMMERCIAL LOCATIONS PROPERTY 2000-08-22 35
Slide 36: Intelligent Houses - Concept
Intelligent Houses - Concept Customers´ Needs Simple Comfortable Safe Spare Time 2000-08-22 36
Slide 37: Investments commercial project
Investments commercial project MSEK 600 500 400 660 300 566 200 256 277 100 153 127 0 96 97 98 99 2000 2000 E June 2000-08-22 37
Slide 38: Financial net and financial key ratios
Financial net and financial key ratios 2000-06-30 Jan-June Jan-June Full year MSEK 2000 1999 1999 Net financial items -170 -180 -356 Financial key ratios Interest-bearing net debt 6 011 6 405 5 588 Interest-bearing loans 6 378 6 501 6 014 Average interest on loans 5,7 5,7 5,9 Debt/equity ratio 1,8 2
Slide 39: Loan Portfolio 2000-06-30
Loan Portfolio 2000-06-30 Interest Maturities MSEK % 2 000 1 921 12 1 507 10 1 500 1 228 8 6,1 5,9 6,1 5,4 5,6 1 000 4,2 6 746 611 4 500 365 2 0 0 PRI 2000 2001 2002 2003 2004> Loan amount Average interest in % 2000-08-22 39
Slide 40: Shareholders
Shareholders Percentage of capital (votes ( votes) votes) 00-06-30 Skanska 26,5% (45,1%) AMF 1,9% (1,4%) Nordbanken 11,3% (8,3%) Foreign SEB 6,4% (4,7%) shareholders 12,1% (9,1%) Robur 5,8% (4,3%) Others 21,4%(16,2%) AP 5,4% (4,1%) Skandia 3,7% (2,8%) Number of SPP 2,8% (2,0%) Shareholders 3 311 Apo
Slide 41: JM-SHARE
JM-SHARE B-Share B-Share Afv Realestate & Traded Volume Construction Index Inn 000´s Afv General Index 2000-08-22 41
Slide 42: General Objectives
General Objectives • Competitive total return to shareholders • Significantly increased production - 4,500 residencies • Margins above 12 per cent • 2.0 bn fully developed management properties. High turnover • Share buy-back under assessment 2000-08-22 42