Jm Ab · OMXSTO:JM
Jm Ab — Q3 2011 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Oct 28, 2011
Slide 1: Interim Report January - September 2011
Interim Report January - September 2011
Slide 2: JM Group
JM Group Revenues: SEK 11.5 billion 1) Total assets: SEK 10.7 billion No. of building rights: 28,000 1% 14 % No. of employees: 2,336 83 % Market cap: SEK 9.1 billion 2) Norway Sweden Finland 1% 1% Denmark Belgium 1) 12-month period according to segment reporting 2) SEK 109 per share 2011-10-28 2011-
Slide 3: Group Summary (segment reporting)
Group Summary January – September 2011 According to segment reporting SEK m % • Revenues increased to 2 500 20 SEK 8,547m (6,342) 18 2 000 16 14 • Operating profit increased 1 500 12 to SEK 1,047m (572) 10 1 000 8 • Operating margin increased 6 500 4 to 12.2 percent (9.0). 2 0 0 2007 2008 2009 2010
Slide 4: Group Summary (IFRIC)
Group Summary January – September 2011 According to IFRIC 15 • Revenues amounted to SEK 8,299m (6,061) • Operating profit totaled SEK 1,013m (525) • Profit before tax totaled SEK 974m (469) • Earnings per share increased to SEK 8.30 (3.90) • Return on equity increased to 24.2 percent (14.9) 2011-10-
Slide 5: Group Summary
Group Summary January – September 2011 • Number of residential units sold 2,366 (2,220) • Number of housing starts 2,856 (2,432) • Cash flow from operations totaled SEK 173m (-236) • The building rights portfolio increased to 28,000 residential building rights (26,700) 2011-10-28 2011-10-28 /ytf 5
Slide 6: Operating profit restated according to IFRIC 15
Operating profit restated according to IFRIC 15 January - September Operating profit, SEK m 2011 2010 JM Residential Stockholm 687 368 JM Residential Sweden 225 146 JM International 92 20 JM Property Development 16 10 JM Production 56 53 Group-wide expenses -29 -25 Total as stated in segment reporti
Slide 7: Somewhat cautious demand
Somewhat cautious demand • Somewhat cautious demand in Sweden and good demand in Norway – low activity level in Denmark after some improvement during 2010 • The interest in JM projects continues to be strong but somewhat slower sales process • Somewhat lower sales in the form of signed contracts • T
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2000 – Q3 2011 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 10 06 00 01 03 04 07 08 02 05 09 11 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 1 3 Q Q3 3 1 Q Q 20 20 20 20 20 20 20 20 20 20
Slide 9: Good level sold residential units
Good level sold residential units No. of units 2 000 1,713 1 800 1 600 1,408 1 400 1,207 1 200 973 1 000 800 605 661 600 1 257 1 072 931 855 852 400 715 200 411 434 442 0 2009 2010 2011 2009 2010 2011 2009 2010 2011 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2011-10-28
Slide 10: High level of housing starts
High level of housing starts No. of units 2 000 1 800 1,604 1 600 1 400 1,102 1,230 1 200 1 000 689 800 1 335 570 600 1 190 880 956 359 400 742 464 565 200 362 240 0 2009 2010 2011 2009 2010 2011 2009 2010 2011 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2011-10-28 2011-
Slide 11: Fågelviken - Örnsberg
Fågelviken - Örnsberg No. of residential units 458 Production starts Q3 2011 102 Completed 2013 2011-10-28 2011-10-28 /ytf 11
Slide 12: Inre Sannegårdshamnen - Gothenburg
Inre Sannegårdshamnen - Gothenburg No. of residential units 86 Production starts 86 Q3 2011 Completed 2014 2011-10-28 2011-10-28 /ytf 12
Slide 13: Spirea Park - Oslo
Spirea Park - Oslo No. of residential units 288 Production starts Q3 2011 144 Completed 2015 2011-10-28 2011-10-28 /ytf 13
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 78 80 70 63 60 59 50 48 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Stockholm Sweden International Average value 2011-10-28 2011-10-28 /ytf 14
Slide 15: 6,439 residential units in current production
6,439 residential units in current production High percentage sold/reserved implicates low Number risk in current production in Q3 2011 4 000 100% 3 500 80% 3 000 2 500 60% 2 000 1 500 40% 1 000 20% 500 0 0% sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- 07 07 0
Slide 16: Residential units in current production
Residential units in current production JM Group 30 Sept. 30 Sept. 31 Dec. 2011 2010 2010 Number of residential units 6,439 5,285 5,431 Number of residential units sold 3,993 3,080 3,495 Number of residential units reserved 758 1,184 937 Sold residential units (%) 62 58 64 Reserved residential units
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - September Full Year SEK m 2011 2010 2010 Revenue 3,562 2,474 3,824 Operating profit 687 368 634 Operating margin (%) 19.3 14.9 16.6 Number of available 12,100 10,000 11,100 building rights Number of residential units in current production 3,353 2,590 2,691 • Somewh
Slide 18: JM Residential Sweden
JM Residential Sweden January - September Full Year SEK m 2011 2010 2010 Revenue 2,493 1,930 2,749 Operating profit 225 146 219 Operating margin (%) 9.0 7.6 8.0 Number of available building 8,800 9,800 9,600 rights Number of residential units in current production 2,009 1,767 1,708 • Somewhat cautio
Slide 19: JM International
JM International January - September Full Year SEK m 2011 2010 2010 Revenue 1,550 1,113 1,570 Operating profit 92 20 48 Operating margin (%) 5.9 1.8 3.1 Number of available building 7,100 6,900 6,800 rights Number of residential units in current production 1,077 928 1,032 • Good demand and sales in
Slide 20: JM Property Development
JM Property Development January - September Full Year SEK m 2011 2010 2010 Revenue 52 56 72 Operating profit 16 10 12 • Project development of commercial properties ongoing in the Dalénum area on Lidingö – 89 % occupancy rate • Production of special housing for the elderly with 54 residential units
Slide 21: JM Production
JM Production January - September Full Year SEK m 2011 2010 2010 Revenue 1) 1,317 1,091 1,496 Operating profit 56 53 91 Operating margin (%) 4.3 4.9 6.1 1) Of which internal 427 322 437 • Good demand • Solid orders • Increased revenue • Stable margin 2011-10-28 2011-10-28 /ytf 21
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 2011-09-30 2010-09-30 Stockholm 12,100 10,000 Malmö/Lund 3,900 3,600 Gothenburg 1) 1,900 2,800 Uppsala 2) 3,000 3,400 Norway 5,400 5,000 Copenhagen 700 900 Helsinki 100 100 Belgium 900 900 Total approximately 28,000 26,700 1) West reg
Slide 23: Stable level of development properties
Stable level of development properties Building rights in Balance Sheet Jan-Sep SEK m 2008 2009 2010 2011 Opening balance 5,282 5,620 4,990 5,374 Plus 1,571 428 1,655 1,261 1) 2) Minus -1,233 -1,058 -1,271 -821 Closing balance 5,620 4,990 5,374 5,814 1) Including impairment losses of SEK 320m 2) Inc
Slide 24: Approx. 5 years production in Balance Sheet
Approx. 5 years production in Balance Sheet 1) No. building rights In Balance Production Average 3) 2011-09-30 Sheet starts 2) period, years JM Residential Stockholm 7,100 1,749 4.1 JM Residential Sweden 5,600 1306 4.3 JM International 4,600 773 6.0 Group 17,300 3,828 4.5 1) Residential building rig
Slide 25: 45 unsold residential units in the Balance Sheet – SEK 115m
45 unsold residential units in the Balance Sheet – SEK 115m SEK m 200 180 160 1) 138 140 115 115 115 120 99 100 80 60 40 20 0 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 1) Of which, Egholm, Denmark SEK 52m 2011-10-28 2011-10-28 /ytf 25
Slide 26: Cash flow Q3 2011
Cash flow Q3 2011 Q3 Q4 Q1 Q2 Q3 Cash flow statement, SEK m 2010 2010 2011 2011 2011 1) 2) Cash flow from operating activities -27 305 -65 -78 316 Cash flow from investment activities -4 11 41 -1 -145 Cash flow from financing activities 112 -55 -38 -158 -44 Total cash flow for the quarter 81 261 -62
Slide 27: Good financial position and liquidity
Good financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 3 000 3 • Equity/Assets ratio is 40 percent (39) • Available liquidity was SEK 4,717m 2 000 2 (4,626) of which cash and cash equivalents SEK 1,917m (1,826) 1 000 1 • Unutilized overdraft facilities and
Slide 28: Net financial items
Net financial items January – September 2011, SEK m Financial income 32 Financial income 24 1) Revaluation/currency hedging 8 Financial expenses - 71 Interest expenses - 40 Revaluation/currency hedging 1) -8 Interest expense pensions - 23 Net financial items - 39 1) Refers to claims on JM Internatio
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q3 2011 (Q2 2011) Cost-based effect Revaluation effect Sales effect SEK 244m (226) + SEK 303m (301) + SEK -66m (-7) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about f
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Group 167 336 262 301 303 Interna- Business segments Stockholm Sweden tional Total Q2 2011 192 81 28 301 Q3 2011 193 73 37 303 The net of positive and negative revaluation effects in residential projects during Q3 2
Slide 31: JM today
JM today • Customer-focused – strong brand • 28,000 residential building rights in attractive locations – high quality and good distribution • Some uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance she