Jm Ab · OMXSTO:JM
Jm Ab — Q1 2001 Earnings Presentation
30 slides from Jm Ab's earnings presentation, April 2001
Slide 1: The JM Group Company Presentation
The JM Group Company Presentation January – March 2001 April 2001
Slide 2: Business concept
Business concept To create attractive living and working environments that satisfy individual needs both today and in the future 1
Slide 3: Group summary
Group summary • Market-leader – tenant-owned residential units • Major project potential – 27 000 building rights • Selective project development – commercial space • Strong focus on cash flow • Rapid value added process and asset turnover • Customer-driven with a strong brand – quality and environm
Slide 4: Financial and non-financial targets
Financial and non-financial targets Target 2000 1999 1998 Return on equity 5 yrs weighted (%) 15 14 13 12 Dividend share of profit after tax (%) 50 39 50 45 Equity/assets ratio (%) 30 33 28 27 Project development- margin (%) 12,0 10,3 6,5 4,7 Building rights for production, number 4 500 3 000 2 300
Slide 5: Ownership Structure
Ownership Structure Share of capital per 31 of March 2001 SEB funds and Alecta (former SPP) 2.2 foundations 15.3 Swedish Metalworkers’ Nordea funds and Union 2.0 foundations 9.8 1.8 Swedbank funds 6.0 Foreign AMF Pension 5.3 shareholders 17.1 Stefan Persson Others 30.7 Placering AB 3.6 Skandia 3.4 N
Slide 6: The JM Share
The JM Share JM B Afv Building and No. of shares traded, Afv general index Construction-related index thousands 5
Slide 7: Increasing shareholder return
Increasing shareholder return SEK % 10 5 8 4 6 3 4 2 2 1 0 0 1996 1997 1998 1999 2000 Dividend per share Dividend yield 6
Slide 8: Project development
Project development Acquisition Concept Management Planning Occupancy Pre-construction Construction Financing Sale/rental 7
Slide 9: Price trend for tenant-owned apartments
Price trend for tenant-owned apartments SEK/sq.m. 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Östermalm Vasastan/ Södermalm Southern Western Northern Kungsholmen suburbs suburbs suburbs Source: Newsec 1996 1997 1998 1999 2000 8
Slide 10: Market rents in Stockholm
Market rents in Stockholm Commercial properties SEK/sq.m. 5 500 5 000 * * 4 500 4 000 * * * 3 500 * * 3 000 2 500 * * * Golden * 2 000 Triangle * * * City * * 1 500 1 000 center Rest of Attractive 500 inner-city Peripheral areas 0 = 1997 = 1998 = 1999 = 2000 * = peak rent Source: Newsec 9
Slide 11: Group profit 5-year rolling average
Group profit 5 - year rolling average MSEK 700 600 581 500 435 173 400 333 122 286 300 90 199 72 200 408 38 313 100 214 243 161 0 1996 1997 1998 1999 2000 Profit after tax 10
Slide 12: Key events in 2001
Key events in 2001 • Continued growth in net sales and profit, stornger margin in project development • Substantial sales of fully developed properties • Selective acuisition of building rights • Strong demand for housing and stable rental rates • A higher number of shareholders 11
Slide 13: Group summary January – March 2001
Group summary January – march 2001 • Profit after financial items rose 74 per cent to MSEK 454 (261) • Return on equityover the past 12-month period was 27 per cent • Earnings per share over the past 12-month period amounted to SEK 30 12
Slide 14: Group summary January – March 2001
Group summary January – March 2001 • Profit in project development increased by 124 per cent to MSEK 159 (71) and the margin improved to 9,1 (5,3) per cent • Net sales increased by 25 per cent to MSEK 1 906 (1 524) • Property sales of MSEK 1 350 (416) provided capital gains of MSEK 304 (166) 13
Slide 15: Consolidated income statement
Consolidated income statement January-March April-March Full Year MSEK 2001 2000 2000/01 2000 Net sales 1 906 1 524 7 231 6 849 Costs for prod. and managem. - 1 555 - 1 253 - 5 821 - 5 519 Gross Profit 351 271 1 410 1 330 Selling and administration costs - 121 - 117 - 459 - 455 Gains on the sale of
Slide 16: The Group's pre-tax profit for January – March
The Group’s pre-tax profit for January – March 2000 MSEK 500 454 400 300 272 261 304 200 166 218 100 150 95 54 0 Jan-Mar1999 Jan-Mar2000 Jan-Mar2001 Profit excl. sales of Gains on sale of fully developed properties fully developed properties 15
Slide 17: Project development: net sales
Project development Net sales 3 000 7 500 6 605 6 500 2 500 5 435 5 500 1 943 2 000 4 122 1 753 4 500 1 441 1 449 1 500 3 500 2 500 1 000 1 500 500 500 0 -500 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1999 2000 2001 By quarter (MSEK) Rolling 12-month average 16
Slide 18: Project development: profit
Project development Profit 725 700 12% 600 11,0% 10% 500 400 365 8% 300 209 6,7% 6% 213 217 200 159 5,1% 136 4% 100 0 2% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1999 2000 2001 By quarter (MSEK) Rolling 12-month average (MSEK) Rolling 12-month margin (%) 17
Slide 19: Property sales
Property sales in 2000 MSEK 2 500 2 000 535 1 500 380 330 304 1 000 135 500 36 0 1996 1997 1998 1999 2000 2001 March Capital gains 18
Slide 20: Net sales by business unit
Net sales by business unit January-March April-March Full Year MSEK 2001 2000 2000/01 2000 Stockholm Residential 728 449 2 700 2 421 Stockholm Commercial 426 402 1 650 1 626 Sweden 450 404 1 849 1 803 Business Development/ Real Estate 118 154 514 550 International 264 175 850 761 Eliminations -80 -6
Slide 21: Operating profit by business unit
Operating profit by business unit January-March April-March Full Year MSEK 2001 2000 2000/01 2000 Stockholm Residential 102 43 437 378 Stockholm Commercial 30 46*) 130 146 *) Sweden 31 16 153 138 Business Development/ Real Estate 363 247 878 762 International 20 13 79 72 Group-wide costs -12 -15 -53
Slide 22: Consolidated balance sheet
Consolidated balance sheet MSEK 31/ 03/ 2001 31/ 03/ 2000 31/ 12/ 2000 Assets Management properties 5 625 6 757 6 445 Development properties 3 347 2 638 3 105 Other assets 3 625 2 129 1 874 Total 12 597 11 524 11 424 Equity and liabilities Equity 4 094 3 331 3 770 Provisions and liabilities 8 503 8
Slide 23: Management properties
Managment properties MSEK 31/ 03/ 2001 31/ 12/ 2001 Fully developed properties 3 874 4 286 Properties under development 1 113 1 522 Properties for futher development 638 637 Totalt 5 625 6 445 22
Slide 24: Development properties
Development properties Book value MSEK 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1995 1996 1997 1998 1999 2000 23
Slide 25: Building rights
Building rights • More than 27 000 building rights • 200 000 sq.m. of commercial space in Stockholm • Well situated 24
Slide 26: Capital structure
Kapitalstruktur?? • Strong cash flow – sales of fully developed properties ande rising projct volume • Active managment of the balance sheet • Visible equity target of 30 per cent • board propose the buy-back of up to 10 per cent of JM shares and autorization to sell • Total distribution of SEK 1 bi
Slide 27: Buy-back of JM shares
Buy-back of JM shares Board proposal: • Acquisition via the OM Stockholm Stock Exchange • On one or more occasions before the next AGM • The company’s holdings at any given time may not exceed 10 per cent of all JM share • Share purchased at the current market price on the acuisition date The object
Slide 28: Summary – subscription warrants
Summary – subscription warrants • SEK 20 per subscription warrant • Offer directed to all employees in Sweden • The offer expires on 30 juni 2004. One warrant carries entitlement to subscribe for one JM skare during the period 3 May 2004 to 30 June 2004 • The definite subscription price will be set
Slide 29: Housing cost
Housing cost Input data Monthly salary – two adults 2 * SEK 25 000 Floor space, apartment 85 sq.m. Initial cost SEK 25 000 / sq.m. Monthly fee to housing cooperative SEK 4 600 / month Loan 90 per cent 28
Slide 30: Estimated housing cost
Estimated housing cost Indata 26% Interest expenses 9 300 Amortization 1 700 46% Monthly fee 4 600 28% Monthly expenses 15 600 Housing cost Tax deduction -2 800 Tax Monthly housing cost 12 800 Left to live on 29