Jm Ab · OMXSTO:JM
Jm Ab — FY2013 Earnings Presentation
32 slides from Jm Ab's earnings presentation, Feb 12, 2014
Slide 1: Year-end Report 2013
Year-end Report 2013 February 12, 2014
Slide 2: JM Group
JM Group Revenue: SEK 12.6 billion Total assets: SEK 11.2 billion No. of building rights: 27,700 No. of employees: 2,176 20 % 1% Market Cap: SEK 14.3 billion 1) 78 % Sweden Norway Finland 1% Denmark Belgium 1) SEK 185 per share 0% 2 │ 2014-02-12 │ ytf
Slide 3: Group Summary (segment reporting)
Group Summary January – December 2013 According to segment reporting • Revenue decreased to SEK m % 1 800 14 SEK 12,652m (13,134) 1 600 12 1 400 • Operating profit increased to 10 1 200 SEK 1,576m (1,398) 1) 1 000 8 800 6 • Operating margin increased 600 4 to 12.5 percent (10.6) 400 2 200 • Gains fr
Slide 4: Group Summary (IFRIC)
Group Summary January – December 2013 According to IFRIC 15 • Revenue amounted to SEK 12,603m (12,480) • Operating profit increased to SEK 1,523m (1,374) 1) • Profit before tax increased to SEK 1,464m (1,318) • Earnings per share increased to SEK 14.10 (11.70) • Return on equity increased to 25.0 pe
Slide 5: Group Summary
Group Summary January – December 2013 • Number of residential units sold 3,265 1) (2,952) • Number of housing starts 2,953 1) (3,163) • Cash flow from operations was SEK 898m (979), large investments in development properties in Stockholm • Building rights portfolio 27,700 (26,600) • Surplus value d
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - December Operating profit, SEK m 2013 2012 JM Residential Stockholm 1,167 1,041 JM Residential Sweden 221 231 JM International 126 181 JM Property Development 37 -83 JM Production 73 71 Group-wide expenses -48 -43 Total as stated in segment reporting
Slide 7: Stable end to the year – strong cash flow
Stable end to the year – strong cash flow • Demand has developed favorably during the year for the Swedish housing operations. Demand weakened in Norway during the second half of the year • Planning processes imposed a limit on the number of housing starts in Stockholm during 2013 • The percentage o
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q4 2004 – Q4 2013 SEK/sq.m. 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sthlm, Inner city Sthlm, Nearby subur
Slide 9: Residential units sales improved
Residential units sales improved Number of units 1 800 1,513 1 600 1,401 1,307 1 400 453 1 200 329 1,056 474 902 951 1 000 204 216 743 800 292 655 547 600 294 213 134 400 254 200 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2012 2013 JM Residential Stockholm JM Residential Sweden JM Internati
Slide 10: Housing starts at somewhat lower level
Housing starts at somewhat lower level Number of units 2 000 1,684 1 800 1,507 1 600 349 1,404 1 400 344 1,157 1 200 426 1 000 201 861 887 779 788 800 243 250 223 404 600 488 400 212 200 200 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2012 2013 JM Residential Stockholm JM Residential Sweden
Slide 11: Strandpromenaden
Strandpromenaden Dalénum - Lidingö No. of residential units 750 Production starts Q4 2013 49 Completed in 2015 11 │ 2014-02-12 │ ytf
Slide 12: Lunds Södra
Lunds Södra Lund No. of residential units 190 Production starts Q4 2013 67 Completed in 2015 12 │ 2014-02-12 │ ytf
Slide 13: Clos Chopin
Clos Chopin 2 Anderlecht - Bryssel No. of residential units 300 Production starts Q4 2013 62 Completed in 2015 13 │ 2014-02-12 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 80 70 61 60 50 49 40 44 30 25 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 Stockholm Sweden International Average value 14 │ 2014-02-12 │ ytf
Slide 15: 5,609 residential units in current production
5,609 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q4 2013 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2011 2011 2012 2012 2013 2013 JM Resi
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Dec 31 Dec 2013 2012 Number of residential units 5,609 1) 5,988 Number of residential units sold 2,858 3,258 Number of residential units reserved 914 667 Sold residential units, % 54 55 Reserved residential units, % 17 11 Sold/reserved residential
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - December SEK m 2013 2012 Revenue 5,254 5,591 Operating profit 1,167 1,041 Operating margin, % 22.2 18.6 Number of available building rights 11,200 10,900 Number of residential units in current production 2,516 3,071 • Demand continued to improve during the year • H
Slide 18: JM Residential Sweden
JM Residential Sweden January - December SEK m 2013 2012 Revenue 2,860 3,003 Operating profit 1) 221 231 Operating margin, % 7.7 7.7 Number of available building rights 8,700 9,200 Number of residential units in current production 1,460 1,492 1) Of which property sales 9 - • Demand continued to impr
Slide 19: JM International
JM International January - December SEK m 2013 2012 Revenue 2,745 3,152 Operating profit 1) 126 181 Operating margin, % 4.6 5.7 Number of available building rights 7,100 6,500 Number of residential units in current production 1,325 1,425 1) Of which property sales 2 - • Demand in Norway weakened dur
Slide 20: JM Property Development
JM Property Development January - December SEK m 2013 2012 Revenue 314 77 Operating profit 1) 37 -83 Number of available building rights 700 Number of residential units in current production 308 1) Of which -property sales 13 0 -impairment loss on project property - -95 • Sale of large part of comme
Slide 21: JM Production
JM Production January - December SEK m 2013 2012 Revenue1) 2,011 2,006 Operating profit 73 71 Operating margin, % 3.6 3.5 1) Of which internal 695 532 • Good demand • Solid orders • Stable revenue • Stable margin. 21 │ 2014-02-12 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 12/31/2013 12/31/2012 1) Stockholm 11,900 10,900 Malmö/Lund 3,700 4,300 Gothenburg 2) 1,900 2,000 Uppsala 3) 3,100 2,900 Norway 5,300 4,700 Copenhagen 700 700 Helsinki 800 600 Belgium 300 500 Total approximately 27,700 26,600 1) Of wh
Slide 23: Somewhat increased level of development properties
Somewhat increased level of development properties Building rights in Balance Sheet SEK m 2010 2011 2012 2013 Opening balance 4,990 5,374 5,816 5,769 Plus 1,655 1,585 1,259 1,274 Minus -1,271 -1,143 -1,306 -1,055 Closing balance 5,374 5,816 5,769 5,988 23 │ 2014-02-12 │ ytf
Slide 24: 6 years production in Balance Sheet
6 years production in Balance Sheet No. building rights 1) In Balance Housing 2) Average 12/31/2013 Sheet starts period, years 2) JM Residential Stockholm 7,700 1,404 5.5 JM Residential Sweden 5,400 861 6.3 JM International 4,600 488 9.4 JM Property Development 100 200 0.5 Group 17,800 2,953 6.0 1)
Slide 25: Valuation development properties
Valuation development properties 12/31/2013 Market Carrying Surplus SEK billion value amount value JM Residential Stockholm 4.3 3.0 1.3 JM Residential Sweden 1.9 1.4 0.5 JM International 2.1 1.5 0.6 Total 8.3 5.9 2.4 25 │ 2014-02-12 │ ytf
Slide 26: 98 unsold residential units in the Balance Sheet
98 unsold residential units in the Balance Sheet, SEK 325m SEK m 500 439 401 400 327 325 300 214 200 100 0 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 26 │ 2014-02-12 │ ytf
Slide 27: Cash flow Q4 2013
Cash flow Q4 2013 Q4 Q1 Q2 Q3 Q4 Cash flow statement, SEK m 2012 2013 2013 2013 2013 From operating activities 1) 2) 675 -309 122 111 974 From investing activities 0 0 2 -1 0 From financing activities -225 -11 -671 -116 -189 Total cash flow for the quarter 450 -320 -547 -6 785 Cash and cash equivale
Slide 28: 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 (38) • Available liquidity was SEK 5,185m (5,275) of which cash and cash 1 000 1 equivalents SEK 2,385m (2,475) • Unutilized overdraft facilities and 0 0 credi
Slide 29: Net financial items
Net financial items January – December 2013, SEK m Financial income 42 Financial income 34 Revaluation/currency hedging 1) 8 Financial expenses -101 Interest expenses -58 Revaluation/currency hedging 1) -8 Interest expense pensions -35 Net financial items -59 1) Refers to claims on JM International.
Slide 30: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q4 2013 (Q3 2013) Cost-based effect Revaluation effect Sales effect SEK 263m (202) + SEK 291m (176) + SEK 65m (73) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 31: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Group 213 169 174 176 291 Interna- Business segment Stockholm Sweden tional Total Q3 2013 144 20 12 176 Q4 2013 227 42 22 291 The net of positive and negative revaluation effects in residential projects during Q4 20
Slide 32: JM today
JM today • Customer focused – strong brand • 27,700 building rights in attractive locations • Uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet – focus on cash flow • Well balanced risk profile •