Jm Ab · OMXSTO:JM
Jm Ab — H1 2014 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Jul 15, 2014
Slide 1: Interim report January – June 2014
Interim report January – June 2014 July 15, 2014
Slide 2: JM Group
JM Group Revenue: SEK 13.0 billion 1) Total assets: SEK 11.0 billion No. of building rights: 28,200 No. of employees: 2,190 1% 19 % Market Cap: SEK 18.5 billion 2) 79 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 242 per share 2 │ 2014-02-12 │ ytf
Slide 3: Group Summary – According to segment reporting
Group Summary January – June 2014 According to segment reporting • Revenue increased to SEK m % SEK 6,521m (6,244) 1 800 18 1 600 16 • Operating profit increased to 1 400 14 1 200 12 SEK 785m (709) 1 000 10 • Operating margin increased 800 8 600 6 to 12.0 percent (11.4) 400 4 200 2 • Gains from prop
Slide 4: Group Summary – According to IFRIC
Group Summary January – June 2014 According to IFRIC 15 • Revenue increased to SEK 6,495m (6,094) • Operating profit increased to SEK 820m (638) • Profit before tax increased to SEK 790m (609) • Earnings per share increased to SEK 7.80 (5.70) • Return on equity increased to 29.9 percent (23.5) 4 │ 2
Slide 5: Group Summary
Group Summary January – June 2014 • Number of residential units sold 1,485 (1,652) • Number of housing starts 1,410 (1,382) • Conditions for increased housing starts in Norway during second half of the year • Cash flow from operations was SEK 290m (-187), investments in development properties and ho
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - June Operating profit, SEK m 2014 2013 JM Residential Stockholm 602 531 JM Residential Sweden 104 113 JM International 43 52 JM Property Development 31 12 JM Production 32 30 Group-wide expenses -27 -29 Total as stated in segment reporting 785 709 Res
Slide 7: Development for housing operations continues to be favorable
Development for housing operations continues to be favorable • Demand in Stockholm continued to improve and demand in the rest of Sweden developed favorably. Demand in Norway recovered during the first six months of the year • Demand in Stockholm strengthens the Group’s operating margin • The percen
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q2 2005 – Q2 2014 SEK/sq.m. 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sthlm, Inner city Sthlm, Nearby subur
Slide 9: Somewhat lower level of sold residential units
Somewhat lower level of sold residential units Number of units 1 800 1,513 1 600 1,307 1 400 1 200 819 951 1 000 902 747 743 800 446 495 547 600 429 400 785 240 694 254 560 505 200 407 452 108 314 307 194 146 0 54 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm J
Slide 10: Unchanged level of housing starts
Unchanged level of housing starts Number of units 1 800 1 600 1,507 1,404 1 400 1 200 795 1 000 756 861 877 779 800 600 466 546 416 488 400 712 761 648 295 444 200 200 363 395 331 54 193 205 146 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm JM Residential Swe
Slide 11: Orion
Orion Täby, Stockholm No. of residential units, approx. 300 Production starts Q2 2014 123 Completed in 2016 11 │ 2014-02-12 │ ytf
Slide 12: Dragörkajen
Dragörkajen 2 Limhamn - Malmö No. of residential units, 84 Production starts Q2 2014 40 Completed in 2015 12 │ 2014-02-12 │ ytf
Slide 13: Tankovainio
Tankovainio Helsinki - Finland No. of residential units 124 Production starts Q2 2014 44 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 110 100 90 91 80 70 60 58 50 51 40 30 20 20 10 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 Stockholm Sweden International Average value 14 │ 2014-02-12 │ ytf
Slide 15: 5,853 residential units in current production
5,853 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q2 2014 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2011 2012 2012 2013 2013 2014 JM Resi
Slide 16: Residential units in current production
Residential units in current production JM Group 30 jun 31 dec 31 dec 2014 2013 2012 Number of residential units 1) 5 853 5 609 5 988 Number of residential units sold 3 181 2 858 3 258 Number of residential units reserved 1 088 914 667 Sold residential units, % 56 54 55 Reserved residential units, %
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - June Full-year SEK m 2014 2013 2013 Revenue 2,644 2,701 5,254 Operating profit 1) 602 531 1,167 Operating margin, % 22.8 19.7 22.2 Number of available building rights 11,100 11,100 11,200 Number of residential units in current production 2,938 2,492 2,516 1) Of whi
Slide 18: JM Residential Sweden
JM Residential Sweden January - June Full-year SEK m 2014 2013 2013 Revenue 1,396 1,500 2,860 Operating profit 1) 104 113 221 Operating margin, % 7.4 7.5 7.7 Number of available building rights 9,000 9,300 8,700 Number of residential units in current production 1,627 1,596 1,460 1) Of which property
Slide 19: JM International
JM International January - June Full-year SEK m 2014 2013 2013 Revenue 1,344 1,326 2,745 Operating profit 1) 43 52 126 Operating margin, % 3.2 3.9 4.6 Number of available building rights 7,300 7,100 7,100 Number of residential units in current production 1,088 1,291 1,325 1) Of which property sales
Slide 20: JM Property Development
JM Property Development January - June Full-year SEK m 2014 2013 2013 Revenue 249 79 314 Operating profit 1) 31 12 37 Number of available building rights 800 700 700 Number of residential units in current production 200 254 308 1) Of which property sales 10 10 13 • Senior housing project with 54 uni
Slide 21: JM Production
JM Production January - June Full-year SEK m 2014 2013 2013 Revenue 1) 1,031 889 2,011 Operating profit 32 30 73 Operating margin, % 3.1 3.4 3.6 1) Of which internal 143 251 532 • Good demand • Solid orders • Increased revenue • Stable margin 21 │ 2014-02-12 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 06/30/2014 06/30/2013 1) Stockholm 11,900 11,800 1) Malmö/Lund 3,700 4,000 Gothenburg 2) 2,100 2,000 Uppsala 3) 3,200 3,300 Norway 5,500 5,300 Copenhagen 700 700 Helsinki 700 700 Belgium 400 400 Total approximately 28,200 28,200 1) Of
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Jan-June SEK m 2011 2012 2013 2014 Opening balance 5,374 5,816 5,769 5,988 Plus 1,585 1,259 1,274 465 Minus -1,143 -1,306 -1,055 -490 Closing balance 5,816 5,769 5,988 5,963 23 │ 2014-02-12 │ ytf
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet No. of building rights 1) In Balance Housing Average 2) 3) 06/30/2014 Sheet starts period, years JM Residential Stockholm 7,500 1,517 4.9 JM Residential Sweden 5,100 910 5.6 JM International 4,500 500 9.0 JM Property Development 100 54 1.9 Group 17,200 2,9
Slide 25: 89 unsold residential units in the Balance Sheet, SEK 338m
89 unsold residential units in the Balance Sheet, SEK 338m SEK m 500 439 425 401 400 325 338 300 200 100 0 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 25 │ 2014-02-12 │ ytf
Slide 26: Cash flow
Cash flow Q2 Q3 Q4 Q1 Q2 Cash flow statement, SEK m 2013 2013 2013 2014 2014 From operating activities 1) 2) 122 111 974 -241 531 From investing activities 2 -1 0 -7 -6 From financing activities -671 -116 -189 5 -708 Total cash flow for the quarter -547 -6 785 -243 -183 Cash and cash equivalents end
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 39 percent (34) • Available liquidity was SEK 4,762m (4,407) of which cash and cash 1 000 1 equivalents SEK 1,962m (1,607) • Unutilized overdraft facilities and 0 0 credi
Slide 28: Net financial items
Net financial items January – June 2014, SEK m Financial income 18 Financial income 14 Revaluation/currency hedging 1) 4 Financial expenses -48 Interest expenses -25 Revaluation/currency hedging 1) -4 Interest expense pensions -19 Net financial items -30 1) Refers to claims on JM International 28 │
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q2 2014 (Q1 2014) Cost-based effect SEK 212m (214) + Revaluation effect SEK 303m (289) + Sales effect SEK 20m (16) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Group 174 176 291 289 303 Interna- Business segment Stockholm Sweden tional Total Q1 2014 231 55 3 289 Q2 2014 237 42 24 303 The net of positive and negative revaluation effects in residential projects during Q2 201
Slide 31: JM today
JM today • Customer focused – strong brand • 28,200 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 •