Jm Ab · OMXSTO:JM

Jm Ab — Q3 2009 Earnings Presentation

26 slides from Jm Ab's earnings presentation, Oct 26, 2009

  1. Slide 1: Interim report January – September 2009

    Interim report January – September 2009

  2. Slide 2: JM Group

    JM Group Income: SEK 9.1 billion 1) Total assets: SEK 9.7 billion No. of building rights: 29,000 10 % No. of employees: 1,881 86 % Market cap: SEK 7.8 billion Finland Norway Sweden 3% 1% Denmark Belgium 1) 12-month period 2009-10-26 2

  3. Slide 3: Group Summary January – September 2009

    Group Summary January – September 2009 • Income decreased by 33 percent to SEK 6,239m (9,379) • Earnings before tax decreased to SEK 244m (1,276) after write-downs of SEK 87m (0) for development properties during the second quarter • Property sales of SEK 237m (83) provided capital gains of SEK 51m

  4. Slide 4: Group Summary January – September 2009

    Group Summary January – September2009 • Number of residential units sold 2,383 (1,601) • Number of housing starts 1,446 (1,483) • Earnings per share was SEK 2.00 (10.50) • Return on equity was 2.2 percent (45.5) • Cash flow from operations totaled SEK 344m (-141). 2009-10-26 4

  5. Slide 5: Continued improved demand and sales in Sweden and Norway

    Continued improved demand and sales in Sweden and Norway • Continued improved demand in Sweden and Norway during the third quarter • Continued improved home sales in form of signed contracts in Sweden and Norway during the third quarter • The percentage of sold/reserved residential units in relation

  6. Slide 6: Prices on the existing home market

    Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 1997 – Q3 2009 SEK/sq.m. 60000 50000 40000 30000 20000 10000 0 05 06 07 08 09 97 98 01 03 99 00 02 04 1 3 1 3 1 3 1 3 1 3 1 3 3 1 3 1 3 1 3 1 3 1 3 1 3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1

  7. Slide 7: Improved home sales figures

    Improved home sales figures No. of units sold 1 907 2 000 1 502 1 500 1 061 1 000 564 471 1 267 1 257 1 172 500 964 715 246 427 398 411 210 0 2007 2008 2009 2007 2008 2009 2007 2008 2009 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2009-10-26 7

  8. Slide 8: Improved level of housing starts

    Improved level of housing starts No. of housing starts 2 000 1 820 1 515 1 500 973 1 000 730 1 359 597 500 1 067 923 742 259 592 464 360 200 240 0 2007 2008 2009 2007 2008 2009 2007 2008 2009 JM Residential Stockholm JM Residential Sweden JM International Q1-Q3 Q4 2009-10-26 8

  9. Slide 9: 3,567 residential units in ongoing production

    3,567 residential units in ongoing production Lower production and increased percentage of sold and reserved Number reduces the risk in ongoing production in Q3 2009 3 500 100% 3 000 80% 2 500 60% 2 000 1 500 40% 1 000 20% 500 0 0% dec-06 mar-07 jun-07 sep-07 dec-07 mar-08 jun-08 sep-08 dec-08 mar-0

  10. Slide 10: Residential units in current production

    Residential units in current production JM Group Sept.30 June 30 March 31 Full Year 2009 2009 2009 2008 Number of residential units 3,567 3,400 3,994 5,118 Number of residential units sold 1,771 1,508 1,649 2,297 Number of residential units reserved 871 609 585 475 Percentage sold residential units

  11. Slide 11: JM Residential Stockholm

    JM Residential Stockholm January – September Full Year SEKm 2009 2008 2008 Income 2,341 4,016 5,317 Operating profit 326 832 920 Operating margin (%) 13.9 20.7 17.3 Number of available building rights 11,200 12,800 12,200 • Continued improved demand and sales • Decreased income • Decreasing margin •

  12. Slide 12: JM Residential Sweden

    JM Residential Sweden January – September Full Year SEKm 2009 2008 2008 Income 1,642 2,651 3,263 Operating profit 86 319 197 Operating margin (%) 5.2 12.0 6.0 Number of available building rights 10,100 11,900 11,000 • Improved demand and sales • Decreased income • Decreasing margin • Improved cash f

  13. Slide 13: JM International

    JM International January – September Full Year SEKm 2009 2008 2008 Income 869 1,640 2,058 Operating profit -201 67 -176 Operating margin (%) -23.1 4.1 -8.6 Number of available building rights 7,700 8,200 7,800 • Improved demand and sales in Norway • Stabilization of demand in Denmark • Improved cash

  14. Slide 14: JM Property Development

    JM Property Development January – September Full Year SEKm 2009 2008 2008 Income 249 155 213 Operating profit 68 33 75 • Gains from property sales SEK 41m (21) • Production ongoing for JM’s new head office in Frösunda – occupancy expected in December 2009 • Project development of commercial properti

  15. Slide 15: JM Production

    JM Production January – September Full Year SEKm 2009 2008 2008 1) Income 1,530 1,402 2,008 Operating profit 93 80 124 Operating margin (%) 6.1 5.7 6.2 1) Of which internal 392 485 630 • Demand declined somewhat during the third quarter • Continued intense competition • Stable margin. 2009-10-26 15

  16. Slide 16: Available building rights portfolio

    Available building rights portfolio Region No. of building rights Stockholm 11,200 Malmö/Lund 3,700 Gothenburg 1) 2,500 Uppsala 2) 3,900 Norway 5,500 Copenhagen 900 Helsinki 300 Belgium 1,000 Total approximately 29,000 1) West region 2) East region 2009-10-26 16

  17. Slide 17: Lower level of development properties

    Lower level of development properties Building rights in Balance Sheet Jan-Sep SEKm 2006 2007 2008 2009 Opening balance 2,925 4,348 5,282 5,620 Plus 2,718 2,130 1,571 243 1) 2) Minus -1,295 -1,196 -1,233 -660 Closing balance 4,348 5,282 5,620 5,203 1) Including write-down of SEK 320m 2) Including wr

  18. Slide 18: 11 years production in Balance Sheet

    11 years production in Balance Sheet Low production rate - over invested building rights portfolio 1) No. building rights In Balance Production Average 2) 3) 2009-09-30 Sheet starts period, years JM Residential Stockholm 8,000 792 10.1 JM Residential Sweden 6,800 701 9.7 JM International 4,800 299 1

  19. Slide 19: Satisfying cash flow Q3 2009

    Satisfying cash flow Q3 2009 Q3 Q4 Q1 Q2 Q3 Cash Flow Statement, SEKm 2008 2008 2009 2009 2009 1) 2) Cash flow from operating activities -196 242 -464 629 179 Cash flow from investment activities 37 -21 4 -45 -3 Cash flow from financing activities 72 306 203 -147 -386 Total cash flow for the quarter

  20. Slide 20: 105 unsold residential units in the Balance Sheet – SEK 307m

    105 unsold residential units in the Balance Sheet – SEK 307m SEKm 450 416 400 350 307 290 300 250 200 171 159 150 100 50 0 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 2009-10-26 20

  21. Slide 21: Good financial position and liquidity

    Good financial position and liquidity Net interest-bearing liability/receivable SEKm times 3 000 3 • Equity/Assets ratio is 35 percent, netting of deferred payments implies 2 000 2 40 percent 1 000 1 • Available liquidity was SEK 3,884m (3,378) of which cash and cash 0 0 equivalents SEK 1,084m (578)

  22. Slide 22: Net financial items

    Net financial items January – September 2009, SEKm Financial income 12 Financial expenses -107 Interest expenses -86 Interest expense pensions -21 Net financial items -95 2009-10-26 22

  23. Slide 23: Consolidated Balance Sheet

    Consolidated Balance Sheet SEKm 2009-09-30 2008-09-30 2008-12-31 Assets Project properties 804 856 614 Development properties 5,203 6,160 5,620 Other assets 3,716 2,899 3,821 Total 9,723 9,915 10,055 Shareholders' equity and liabilities Shareholders' equity 3,431 3,327 3,241 Non-current liabilities

  24. Slide 24: Components of profit/loss

    Components of profit/loss Percentage of completion method (gross) Q3 2009 (Q2 2009) Cost-based Revaluation Sales effect effect SEK 101m (141) + effect SEK 57m (24) + SEK 66m (88) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about forecast Change in the

  25. Slide 25: Revaluation effects – housing business

    Revaluation effects – housing business SEKm Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Group 89 -90 47 24 57 Interna- Business segments Stockholm Sweden tional Total Q2 2009 43 7 -26 24 Q3 2009 34 30 -7 57 The net of positive and negative revaluation effects in residential projects during the third qua

  26. Slide 26: JM today

    JM today • Customer-focused – strong brand • 29,000 residential building rights in attractive locations – high quality and good distribution • Week economy offset by low interest levels – fundamentally favorable prospects in the long term • Industrialized process and attractive homes • Strong balanc

JM — Q3 2009 Earnings Presentation on 6ix