Jm Ab · OMXSTO:JM
Jm Ab — H1 2015 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Jul 14, 2015
Slide 1: Interim report January – June 2015
Interim report January – June 2015 July 14, 2015
Slide 2: JM Group
JM Group Revenue: SEK 14.5 billion 1) Total assets: SEK 11.5 billion No. of building rights: 27,900 No. of employees: 2,252 1% 19 % Market Cap: SEK 17,2 billion 2) 79 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 230 per share 2 │ 2015-07-14 │ ytf
Slide 3: Group Summary – segment reporting
Group Summary January – June 2015 According to segment reporting • Revenue increased to SEK m % SEK 7,233m (6,521) 2 000 20 1 800 18 • Operating profit was 1 600 16 1 400 14 SEK 771m (785) 1 200 12 1 000 10 • Operating margin decreased 800 8 to 10.7 percent (12.0) due to a 600 6 change in the projec
Slide 4: Group Summary – IFRIC
Group Summary January – June 2015 According to IFRIC 15 • Revenue increased to SEK 6,785m (6,495) • Operating profit was SEK 722m (820) • Profit before tax decreased to SEK 691m (790) • Earnings per share amounted to SEK 7.00 (7.80) • Return on equity was 28.8 percent (29.9) 4 │ 2015-07-14 │ ytf
Slide 5: Group Summary
Group Summary January – June 2015 • Number of residential units sold 1,940 (1,485) • Number of housing starts 1,777 (1,410) • Cash flow from operations was SEK 386m (290), including payment for the Marievik property of SEK 765m during the first quarter • Building rights portfolio 27,900 (28,200) 5 │
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - June Operating profit, SEK m 2015 2014 JM Residential Stockholm 531 602 JM Residential Sweden 138 104 JM International 80 43 JM Property Development 15 31 JM Construction 32 32 Group-wide expenses -25 -27 Total as stated in segment reporting 771 785 R
Slide 7: Good demand, strong sales and high level of production starts
Good demand, strong sales and high level of production starts • Demand in Sweden and Norway continued to increase during the first six months • Strong sales in Sweden and Norway • High level of production starts for residential units • The change in the project composition for our housing business i
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q1 2006 – Q1 2015 SEK/sq.m. 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sthlm, Inner city Sthlm, Nearb
Slide 9: High level of sold residential units
High level of sold residential units Number of units 1 800 1,513 1,553 1 600 1 400 1 200 768 819 951 981 1 000 800 446 529 607 547 600 400 785 855 240 413 694 625 254 505 452 460 200 307 194 54 146 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 JM Residential Stockholm JM Residential
Slide 10: High level of housing starts
High level of housing starts Number of units 1 800 1 600 1,505 1,404 1 400 1 200 744 1,003 1 000 756 861 800 559 653 600 466 488 400 448 761 753 295 284 648 444 543 200 200 395 427 193 205 146 0 54 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 JM Residential Stockholm JM Residential Sw
Slide 11: Stockholm Lighthouse
Stockholm Lighthouse Kvarnholmen No. of residential units 1,100 Housing starts Q2 2015 96 Completed in 2017 11 │ 2015-07-14 │ ytf
Slide 12: Åriket, Kungsängen
Åriket, Kungsängen Uppsala No. of residential units approx. 1,000 Housing starts Q2 2015 89 Completed in 2016 12 │ 2015-07-14 │ ytf
Slide 13: Kavaleren
Kavaleren Oslo, Norway No. of residential units 68 Housing starts Q2 2015 68 Completed in 2018 13 │ 2015-07-14 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts Number per phase, residential homes 110 100 90 80 80 70 64 60 58 50 40 39 30 20 10 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 Stockholm Sweden International Average value 14 │ 2015-07-14 │ ytf
Slide 15: 6,917 residential units in current production
6,917 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q2 2015 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2012 2013 2013 2014 2014 2015 JM Resi
Slide 16: Residential units in current production
Residential units in current production JM Group 30 June 31 Dec 31 Dec 2015 2014 2013 Number of residential units 1) 6,917 6,375 5,609 Number of residential units sold 4,105 3,387 2,858 Number of residential units reserved 1,470 1,249 914 Sold residential units, % 64 57 54 Reserved residential units
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - June Full Year SEK m 2015 2014 2014 Revenue 3,120 2,644 5,692 Operating profit 1) 531 602 1,278 Operating margin, % 17.0 22.8 22.5 Number of available building rights 11,500 11,100 11,900 Number of residential units in current production 3,277 2,938 3,293 1) Of whi
Slide 18: JM Residential Sweden
JM Residential Sweden January - June Full Year SEK m 2015 2014 2014 Revenue 1,588 1,396 2,764 Operating profit 1) 138 104 216 Operating margin, % 8.7 7.4 7.8 Number of available building rights 8,900 9,000 9,400 Number of residential units in current production 1,883 1,627 1,528 1) Of which property
Slide 19: JM International
JM International January - June Full Year SEK m 2015 2014 2014 Revenue 1,528 1,344 2,942 Of which Norway 1,331 1,170 2,563 Operating profit 1) 80 43 135 Of which Norway 83 68 182 Operating margin, % 5.2 3.2 4.6 Of which Norway 6.2 5.8 7.1 Number of available building rights 7,000 7,300 7,500 Number
Slide 20: JM Property Development
JM Property Development January - June Full Year SEK m 2015 2014 2014 Revenue 92 249 401 Operating profit 1) 15 31 51 Number of available building rights 500 800 600 Number of residential units in current production 484 200 430 1) Of which property sales 14 10 12 • Project with 97 rental units in th
Slide 21: JM Construction
JM Construction January - June Full Year SEK m 2015 2014 2014 Revenue 1) 1,112 1,031 2,456 Operating profit 32 32 81 Operating margin, % 2.9 3.1 3.3 1) Of which internal 207 143 386 • Good demand • Solid orders • High volume during the first six months • Stable margin 21 │ 2015-07-14 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 06/30/2015 06/30/2014 1) 1) Stockholm 12,000 11,900 Malmö/Lund 3,500 3,700 Gothenburg 2) 2,300 2,100 Uppsala 3) 3,100 3,200 Norway 4,800 5,500 Copenhagen 500 700 Helsinki 1,500 700 Belgium 200 400 Total approximately 27,900 28,200 1)
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Jan-June SEK m 2012 2013 2014 2015 Opening balance 5,816 5,769 5,988 6,802 Plus 1,259 1,274 2,273 851 Minus -1,306 -1,055 -1,459 -926 Closing balance 5,769 5,988 6,802 6,727 23 │ 2015-07-14 │ ytf
Slide 24: 5 years production in Balance Sheet
5 years production in Balance Sheet No. of building rights 1) In Balance Housing Average 06/30/2015 Sheet starts 2) period, years 3) JM Residential Stockholm 7,900 1,497 5.3 JM Residential Sweden 5,000 1,102 4.5 JM International 4,100 875 4.7 JM Property Development - 338 - Group 17,000 3,812 4.5 1)
Slide 25: 69 unsold residential units in the Balance Sheet, SEK 292m
69 unsold residential units in the Balance Sheet, SEK 292m SEK m 400 338 318 300 292 243 228 200 100 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 25 │ 2015-07-14 │ ytf
Slide 26: Cash flow
Cash flow Q2 Q3 Q4 Q1 Q2 Cash flow statement, SEK m 2014 2014 2014 2015 2015 From operating activities 1) 2) 531 349 339 -273 659 From investing activities -6 -1 -6 -2 -5 From financing activities -708 -156 -61 -73 -841 Total cash flow for the quarter -183 192 272 -348 -187 Cash and cash equivalents
Slide 27: Strong financial position and liquidity
Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 2 000 2 • Equity/Assets ratio 37 percent (39) • Available liquidity was SEK 4,687m (4,762) of which cash and cash 1 000 1 equivalents SEK 1,887m (1,962) • Unutilized overdraft facilities and 0 0 credi
Slide 28: Net financial items
Net financial items January - June SEK m 2015 2014 Financial income 8 14 Revaluation/currency hedging 1) 1 4 Financial income 9 18 Interest expenses -23 -25 Revaluation/currency hedging 1) -1 -4 Interest expense pensions -16 -19 Financial expenses -40 -48 Net financial items -31 -30 1) Refers to cla
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q2 2015 (Q1 2015) Cost-based effect SEK 246m (212) + Revaluation effect SEK 273m (241) + Sales effect SEK 55m (58) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Group 303 271 424 241 273 Interna- Business segment Stockholm Sweden tional Total Q1 2015 188 42 11 241 Q2 2015 198 36 39 273 The net of positive and negative revaluation effects in residential projects during Q2 20
Slide 31: JM today
JM today • Customer focused – strong brand • 27,900 building rights in attractive locations • Fundamentally favorable prospects • Sustainable urban planning • Efficient management system • Strong balance sheet – focus on cash flow • Well balanced risk profile • Skills development prioritized 31 │ 20