Jm Ab · OMXSTO:JM
Jm Ab — Q3 2012 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Oct 26, 2012
Slide 1: Interim Report January – September 2012
Interim Report January – September 2012
Slide 2: JM Group
JM Group Revenues: SEK 12.7 billion 1) Total assets: SEK 11.1 billion No. of building rights: 27,600 1% 18 % No. of employees: 2,332 79 % Market cap: SEK 9.4 billion 2) Norway Sweden Finland 1% 1% Denmark Belgium 1) 12-month period 2) SEK 115 per share 2012-10-26 2
Slide 3: Group Summary (segment reporting)
Group Summary January – September 2012 According to segment reporting • Revenues increased to SEK m 2 500 % 20 SEK 9,334m (8,547) 18 2 000 16 • Operating profit was 14 1 500 12 to SEK 1,019m (1,047) 10 1 000 8 • Operating margin decreased 6 to 10.9 percent (12.2). 500 4 2 0 0 2007 2008 2009 2010 201
Slide 4: Group Summary (IFRIC)
Group Summary January – September 2012 According to IFRIC 15 • Revenues increased to SEK 9,041m (8,299) • Operating profit was SEK 1,010m (1,013) • Profit before tax was SEK 968m (974) • Earnings per share increased to SEK 8.50 (8.30) • Return on equity was 23.9 percent (24.2). 2012-10-26 4
Slide 5: Group Summary
Group Summary January – September 2012 • Number of residential units sold 1,892 (2,366) • Number of housing starts 2,165 (2,856) • Cash flow from operations increased to SEK 304m (173) • Building rights portfolio 27,600 (28,000). 2012-10-26 5
Slide 6: Operating profit according to IFRIC
Operating profit according to IFRIC 15 January - September Operating profit, SEK m 2012 2011 JM Residential Stockholm 732 687 JM Residential Sweden 165 225 JM International 107 92 JM Property Development 7 16 JM Production 43 56 Group-wide expenses -35 -29 Total as stated in segment reporting 1,019
Slide 7: Cautious demand – continued improvement in Stockholm
Cautious demand – continued improvement in Stockholm • Continued cautious demand in Sweden – but continued improvement in Stockholm during the start of the fall. Continued good demand in Norway • The sales process is taking longer than usual. The interest in JM projects continues • Positive effect o
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2005 - 2012 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2006 2007 2008 2009 2010 2011 2012 Sthlm, Inner city Sthlm, Nearby suburbs Gothenburg
Slide 9: Lower sales rate residential units
Lower sales rate residential units No. of units 2 000 1 800 1 600 1,408 1,401 1 400 1,207 1 200 1,056 1 000 661 800 655 600 1,072 931 855 852 400 833 610 200 434 442 449 0 2010 2011 2012 2010 2011 2012 2010 2011 2012 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2012-10-26
Slide 10: Lower level of housing starts
Lower level of housing starts No. of units 2 000 1 800 1,684 1,604 1 600 1 400 1,230 1,157 1 200 1 000 788 800 1,335 570 600 1,190 1,163 880 956 400 529 565 473 200 362 0 2010 2011 2012 2010 2011 2012 2010 2011 2012 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2012-10-26
Slide 11: Kista Torn
Kista Torn Stockholm No. of residential units 360 Production starts Q3 2012 266 Completed 2015 2012-10-26 11
Slide 12: Kajutan, Lomma
Kajutan, Lomma Malmö No. of residential units 1,000 Production starts Q3 2012 55 Completed 2014 2012-10-26 12
Slide 13: Grefsen
Grefsen Oslo No. of residential units 500 Production starts Q3 2012 34 Completed 2014 2012-10-26 13
Slide 14: Average number of housing starts per phase
Average number of housing Number starts per phase 100 90 90 80 70 60 54 50 42 40 30 28 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 Stockholm Sweden International Average value 2012-10-26 14
Slide 15: 5,986 residential units in current production
5,986 residential units in current production Percentage sold/reserved implicates normal Number risk in current production in Q3 2012 7000 100% 6000 80% 5000 4000 60% 3000 40% 2000 20% 1000 0 0% mar-08 sep-08 mar-09 sep-09 mar-10 sep-10 mar-11 sep-11 mar-12 sep-12 JM Residential Stockholm JM Residen
Slide 16: Residential units in current production
Residential units in current production JM Group 30 Sept 30 Sept 31 Dec 2012 2011 2011 Number of residential units 5,986 6,439 6,401 Number of residential units sold 3,199 3,993 3,820 Number of residential units reserved 770 758 536 Sold residential units (%) 53 62 60 Reserved residential units (%)
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - September Full year SEK m 2012 2011 2011 Revenue 4,126 3,562 5,141 Operating profit 732 687 1,028 Operating margin (%) 17.7 19.3 20.0 Number of available building rights 11,100 12,100 11,800 Number of residential units in current production 3,167 3,353 3,290 • Caut
Slide 18: JM Residential Sweden
JM Residential Sweden January - September Full Year SEK m 2012 2011 2011 Revenue 2,185 2,493 3,355 Operating profit 165 225 301 Operating margin (%) 7.6 9.0 9.0 Number of available building rights 9,400 8,800 8,800 Number of residential units in current production 1,668 2,009 1,973 • Cautious demand
Slide 19: JM International
JM International January - September Full Year SEK m 2012 2011 2011 Revenue 2,001 1,550 2,349 Operating profit 107 92 159 Operating margin (%) 5.3 5.9 6.8 Number of available building rights 7,100 7,100 6,600 Number of residential units in current production 1,151 1,077 1,138 • Good demand and sales
Slide 20: JM Property Development
JM Property Development January - September Full Year SEK m 2012 2011 2011 Revenue 56 52 73 Operating profit 7 16 15 • Project development of commercial properties ongoing in the Dalénum area on Lidingö – 86 % occupancy rate • Production of senior housing project consisting of 108 apartments in Stor
Slide 21: JM Production
JM Production January - September Full Year SEK m 2012 2011 2011 Revenue1) 1,428 1,317 1,986 Operating profit 43 56 84 Operating margin (%) 3.0 4.3 4.2 1) Of which internal 462 427 687 • Good demand • Solid orders • Increased revenue • Decreased margin due to projects obtained during a period of hig
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 2012-09-30 2011-09-30 Stockholm 11,100 12,100 Malmö/Lund 4,300 3,900 Gothenburg 1) 2,100 1,900 Uppsala 2) 3,000 3,000 Norway 5,300 5,400 Copenhagen 700 700 Helsinki 600 100 Belgium 500 900 Total approximately 27,600 28,000 1) West reg
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Q3 SEK m 2009 2010 2011 2012 Opening balance 5,620 4,990 5,374 5,816 Plus 428 1,655 1,585 738 1) Minus -1,058 -1,271 -1,143 -832 Closing balance 4,990 5,374 5,816 5,722 1) Including impairment losses of SEK 87m 2012-10-26 23
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet 1) No. building rights In Balance Production Average 3) 2) 2012-09-30 Sheet starts period, years JM Residential Stockholm 7,200 1,512 4.8 JM Residential Sweden 5,700 730 7.8 JM International 4,500 696 6.4 Group 17,400 2,938 5.9 1) Residential building righ
Slide 25: 69 unsold residential units in the Balance Sheet
69 unsold residential units in the Balance Sheet – SEK 193m SEK m 240 200 193 168 160 150 147 120 115 80 40 0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 2012-10-26 25
Slide 26: Strong cash flow Q3 2012
Strong cash flow Q3 2012 Q3 Q4 Q1 Q2 Q3 Cash flow statement, SEK m 2011 2011 2012 2012 2012 Cash flow from operating activities 1) 2) 316 560 2 -140 442 Cash flow from investment activities -145 12 0 -2 0 Cash flow from financing activities -44 -50 30 -560 -184 Total cash flow for the quarter 127 52
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 40 percent (40) Available liquidity was SEK 4,822m 1 000 1 (4,717) of which cash and cash equivalents SEK 2,022m (1,917) 0 0 Unutilized overdraft facilities and credit line
Slide 28: Net financial items
Net financial items January – September 2012, SEK m Financial income 29 Financial income 26 Revaluation/currency hedging 1) 3 Financial expenses -71 Financial expenses -42 Revaluation/currency hedging 1) -3 Interest expense pensions -26 Net financial items -42 1) Refers to claims on JM International
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q3 2012 (Q2 2012) Cost-based effect SEK 252m (263) + Revaluation effect SEK 221m (256) + Sales effect SEK -36m (-9) 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 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Group 303 351 258 256 221 Interna- Business segment Stockholm Sweden tional Total Q2 2012 143 64 49 256 Q3 2012 146 43 32 221 The net of positive and negative revaluation effects in residential projects during Q3 20
Slide 31: JM today
JM today • Customer-focused – strong brand • 27,600 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