Jm Ab · OMXSTO:JM
Jm Ab — H1 2001 Earnings Presentation
31 slides from Jm Ab's earnings presentation, August 2001
Slide 1: The JM Group Company Presentation
The JM Group Company Presentation January – June 2001 August 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 apartments • Major potential – building rights for 27,000 units – greater selectivity in acquisitions • Caution in commercial project development • A focus on cash flow – rapid balance sheet turnover • Customer-driven with a strong brand – quality and env
Slide 4: Ownership Structure
Ownership Structure Share of capital per 31 of July 2001 SEB funds and SHB funds 2.9 foundations 18.0 Alecta (former SPP) 2.9 Nordea funds 7.3 Foreign Swedbank funds 6.1 shareholders 13.4 AMF Pension 4.8 Others 30.7 Stefan Persson JM AB 7.5 Placering AB 3.6 Skandia 3.4 Number of shareholders 3 821 3
Slide 5: JM Share
JM Share JM B Afv Building and No. of shares traded, Afv general index Construction-related index thousands 350 20000000 18000000 300 16000000 14000000 250 12000000 10000000 200 8000000 6000000 150 4000000 2000000 100 0 1997 1998 1999 2000 2001 4
Slide 6: Building rights
Building rights • More than 27 000 building rights • 200 000 sq.m. of commercial space in Stockholm • Well situated 5
Slide 7: Lilla Essingen
Lilla Essingen Stockholm • No. of units: approx. 700 • Production period: 2000-2005 • Anticipated average price level: SEK 37,000/sq.m. (incl. VAT) • Acquisition price: MSEK 300 (SEK 4,000/sq.m.) • Phase 1 completed Commercial space • Approx. 5,000 sq.m. 6
Slide 8: Vallgossen
Vallgossen Stockholm • No. of units: 126 • Production period: 2000-2002 • Anticipated average price level: around SEK 40,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 42 (SEK 4,200/sq.m.) • Intelligent multifamily units • Good sales status 7
Slide 9: Liljeholmskajen
Liljeholmskajen Stockholm • No. of units: approx 2,500 • Production period: 2001-2007 • Groundbreaking: 30 Aug, opening of InfoCenter • Anticipated average price level: around SEK 33,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 520 (SEK 2,500/sq.m.) 8
Slide 10: Eriksdalshallen
Eriksdalshallen Stockholm • No. of units: 38, commercial space • Production period: 2001 – 2002 • Anticipated average price level : SEK 38,000/sq.m. (incl. VAT) • Acquisition price: MSEK 10.5 (SEK 3,600/sq.m.) 9
Slide 11: Hammarby Sjöstad
Hammarby Sjöstad Stockholm • No of units: 280 (sales started) • Production period: 2000-2002 • Anticipated average price level: around SEK 40,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 80 (SEK 4,000/sq.m.) 10
Slide 12: Eriksberg
Eriksberg Gothenburg • No of units: approx 160 • Production period: 1998- 2002 • Anticipated average price: SEK 25 000 sq.m. (incl. VAT) • Acquisition price: MSEK 38 (SEK 2 800 sq.m.) • Good sales status 11
Slide 13: Marstrand
Marstrand • No of units: 5 phases with around 15 units each, 2-6 rooms, 74 -155 sq.m. • Production period : 1998- 2002 • Phases 1-3 sold out • Anticipated average price level: SEK 25,000/ sq.m. 12
Slide 14: Malmö
Malmö BO01 • No of units: 37 (Havslunden, Vitruvius) • Production period: 2000 - 2001 • Anticipated average price level for Havslunden: above SEK 30,000/sq.m. • Anticipated average price level for Vitruvius: SEK 36,000/sq.m. 13
Slide 15: Frösunda torg
Frösunda torg Solna Commercial space • Project investment of approx. MSEK 220 • Approx. 8,500 sq.m. of rentable space • Partly open-plan design • Office rents of around SEK 2,500-2,800/sq.m. 14
Slide 16: Vasahuset
Vasahuset Stockholm Commercial space • IBM’s E-business Center • Customized interior • Occupancy in May 2001 • A total of 12,000 sq.m. in Vasahuset • New lease: SEK 4,500- 5,500/sq.m. 15
Slide 17: Drammen
Drammen Norway • No of units: approx 170 • Production period: 1998- 2001 • Anticipated average price: SEK 18 000/sq.m. (incl. VAT) • Acquisition price: MSEK 11 (SEK 800/sq.m.) 16
Slide 18: Copenhagen
Copenhagen Denmark • No of units: 41 • Production period: 2000- 2001 • Anticipated average price: approx. SEK 33 000 sq.m. (incl. VAT) • Acquisition price: MSEK 22 (SEK 4 500 sq.m.) 17
Slide 19: Purchase power-housing
Purchase power-housing No. of households in Stockholm by price level 400 000 363 169 300 000 282 032 247 489 217 888 197 892 197 892 200 000 150 388 150 388 110 935 100 000 0 SEK 10,000/sq.m. SEK 20,000/sq.m. SEK 30,000/sq.m. SEK 12,000 left to live on per month SEK 15,000 left to live on per month
Slide 20: Customer preference – housing purchase/rent
Customer preference – housing purchase/rent What company would you choose today JM 32 18 Skanska 21 21 HSB 18 13 NCC 7 11 Vasakronan 3 7 Peab 13 Drott 1 5 0 20 40 60 80 100 Source: Inte Rio First choice Second choice 19
Slide 21: Highlights of 2001
Highlights of 2001 • Robust growth in net sales, profit and margin in project development • Extensive ongoing sales of fully developed properties • Greater selectivity in acquisition of building rights • Strong demand for newly produced housing and stable rents • Continued favorable sales conditions
Slide 22: Group summary
Group summary January – June 2001 • Profit after financial items increased by 85 per cent to MSEK 1 034 (558) • Return on equity over the past 12-month period was 32 per cent • Earnings per share over the past 12-month period amounted to SEK 36 21
Slide 23: Group summary
Group summary January – June 2001 • Profit in project development increased by 71 per cent to MSEK 335 (207) and the margin improved to 9.5 (7.4) per cent • Net sales increased by 28 per cent to MSEK 4 028 (3 144) • Property sales of MSEK 2 670 (1 134) provided capital gains of MSEK 702 (258) 22
Slide 24: Project development: Net sales
Project development Net sales 3 000 7116 7 000 2 500 5 587 6 000 1 943 1971 2 000 4 441 5 000 1 753 1 449 4 000 1 500 3 000 1 000 2 000 500 1 000 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1999 2000 2001 By quarter (MSEK) Rolling 12-month average 23
Slide 25: Project development: Profit
Project development Profit 785 800 14% 700 12% 600 11,0% 10% 500 420 400 8% 300 7,5% 237 213 217 6% 196 200 159 5,3% 4% 100 0 2% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1999 2000 2001 By quarter (MSEK) Rolling 12-month average (MSEK) Rolling 12-month margin (%) 24
Slide 26: Net sales by business unit
Net sales by business unit January-June April-June July-June Full Year MSEK 2001 2000 2001 2000 2000/01 2000 Stockholm Residential 1 595 1 067 867 618 2 949 2 421 Stockholm Commercial 899 750 473 348 1 775 1 626 Sweden 930 818 480 414 1 915 1 803 Business Development/ Real Estate 221 291 103 137 480
Slide 27: Operating profit by business unit
Operating profit by business unit January-June April-June July-June Full year MSEK 2001 2000 2001 2000 2000/01 2000 Stockholm Residential 224 145 122 102 457 378 Stockholm Commercial 89 67*) 59 21 168 146*) Sweden 63 35 32 19 166 138 Business Development/ Real Estate 814 417 451 170 1 159 762 Intern
Slide 28: Consolidated balance sheet
Consolidated balance sheet MSEK 30/ 06/ 2001 30/ 06/ 2000 31/ 12/ 2000 Assets Management properties 5 176 6 389 6 445 Development properties 3 619 2 900 3 105 Other assets 4 001 2 709 2 547 Total 12 796 11 998 12 097 Equity and liabilities Equity 3 618 3 320 3 770 Provisions and liabilities 9 178 8
Slide 29: Property sales in 2000
Property sales in 2000 MSEK 3 000 2 500 702 2 000 535 1 500 380 330 1 000 135 500 36 0 1996 1997 1998 1999 2000 2001 June Capital gains 28
Slide 30: Development properties
Development properties Book value MSEK 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1996 1997 1998 1999 2000 2000 June 29
Slide 31: Capital structure
Capital structure • Strong cash flow – sales of fully developed properties and increasing project volume • Active management of the Group’s balance sheet • Visible equity target of 30 per cent • Offensive share buy-back – 7.5 per cent – at SEK 239 per share • So far more than MSEK 900 distributed in