Jm Ab · OMXSTO:JM
Jm Ab — Q1 2000 Earnings Presentation
41 slides from Jm Ab's earnings presentation, 2000
Slide 1: The JM Group
The JM Group 1
Slide 2: Comparative advantages of JM
Comparative advantages of JM • Project development - managing the full process • Targeting growth segments of the market • Strong project development competence • Large development property portfolio - attractive locations • Business oriented corporate culture • Quality and environmental focus • Str
Slide 3: JMs Business concept
JMs Business concept To create attractive living and working environments that satisfy individual needs both today and in the future 3
Slide 4: Strategy: Concentration to core competence
Strategy Concentration to core competence • Long term quality and environmental priority • Growth by organic expansion and acquisitions • Increased focus on housing concepts with high customer value • Selective emphasis on commercial project development • Higher turnover in real estate portfolio • C
Slide 5: Financial targets
Financial targets Results Target 99 98 97 96 95 Return on equity (%)* 15 13 12 12 11 12 Treasury bond interest rate +3.5%** 10 11 12 12 13 Dividend as a % of profit after tax (%) 50 50 *** 45 30 42 13 Equity ratio (%) 30 28 27 30 25 24 *Based on the rolling five-year average. **Treasury bond interes
Slide 6: The JM organization
The JM organization President CEO Legal Affairs Finance CFO Communication Human Resource Business Support Project Development Project Development Project Development Business Development Project Development Residential Sweden Commercial Management International Stockholm Stockholm Properties 6
Slide 7: JM Development concept
JM Development concept Acquisition Property Conceptual work management General planning Occupancy Project planning Construction Financing Sales/Lease 7
Slide 8: Population growth and housing starts in Stockholm
Population growth and housing starts for multi-dwelling complexes in Stockholm 25 000 20 000 15 000 10 000 5 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 8
Slide 9: Population growth and housing starts in Oslo
Population growth and housing starts for multi-dwelling complexes in Oslo 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 9
Slide 10: Population growth and housing starts in Köpenhamn
Population growth and housing starts for multi-dwelling complexes in Köpenhamn 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 90 91 92 93 94 95 96 97 98 99 Population growth No. of housing starts 10
Slide 11: Value development for housing in preferred locations (Stockholm)
Value development for housing in preferred locations (Stockholm) SEK/sqm Tenant-owned apartments Residential properties 11
Slide 12: Value development for commercial properties in preferred locations
Value development for commercial properties in preferred locations (nominal values) values) SEK/sqm 12
Slide 13: Important events 2000
Important events 2000 • JM Sells the residential property Träskfloden 15 at Jarlaplan in Stockholm for MSEK 401. 401 Profit MSEK 163 . • Divests JM Maskinservice including all production equipment to Cramo for MSEK 75. 75 Profit MSEK 30. 30 13
Slide 14: Major acquisitions 2000
Major acquisitions 2000 • Acquisition of land on Kungsholmen, in Stockholm for MSEK 295, 295 45 000 sqm, approx. 300 building rights. • Acquisition of Lustgården, Kungsholmen for MSEK 262 approx. 35 000 sqm, office and residents. • Acquisition of land in Gustavsberg, in Stockholm for MSEK 350, 350 1
Slide 15: The JM Group: Financial summary January-March 2000
The JM Group Financial summary January - march 2000 • Profit after financial items amounted to MSEK 261 (272). • Profit in project development increased by 77 per cent to MSEK 83 (47) and the profit margin improved to 6,1 (4,7) per cent. • Property sales of MSEK 416 (1.240) gave a profit of MSEK 166
Slide 16: The JM Group - pre tax profit
The JM Group - pre tax profit Profit from sale of management properties MSEK Profit before sale of 300 management properties 250 200 166 218 150 100 50 95 19 54 23 0 1998 1999 2000 Jan - march Jan - march Jan - march 16
Slide 17: Sale of management properties
Sale of management properties MSEK Profit 2500 2000 450 1500 380 330 1000 135 500 36 166 0 1996 1997 1998 1999 2000 march 2000 E 17
Slide 18: Business unit Residential Stockholm
Business unit Residential Stockholm January - March Full year MSEK 2000 1999 1999 Net Sales 449 359 1 658 Costs for production and management -375 -311 -1 396 Selling and administration -31 -21 -82 Profit in Stockholm Residential 43 27 180 Key ratios Margin (%) 9,6 7,5 10,9 Operating capital *) 1 67
Slide 19: Business unit Sweden
Business unit Sweden January - March Full year MSEK 2000 1999 1999 Net Sales 404 332 1 562 Costs for production and management -368 -305 -1 420 Selling and administration -20 -15 -70 Profit in business unit Sweden 16 12 72 Key ratios Margin (%) 4,0 3,6 4,6 Operating capital *) 441 261 335 Return on
Slide 20: Business unit Commercial Stockholm
Business unit Commercial Stockholm January - March Full year MSEK 2000 1999 1999 Net Sales 394 255 1 398 Costs for production and management -358 -232 -1 275 Selling and administration -25 -18 -78 Gross profit 11 5 45 Gains on the sale of operations 30 - - Profit in Stockholm Commercial 41 5 45 Key
Slide 21: Business unit Business Development/Real Estate
Business unit Business Development/Real Estate January - March Full year MSEK 2000 1999 1999 Net Sales 162 217 740 Costs for production and management -63 -82 -285 Selling and administration -13 -17 -48 Gross profit 86 118 407 Property sales 166 218 330 Profit in Business Development/Real Estate 252
Slide 22: Business unit International
Business unit International January - March Full year MSEK 2000 1999 1999 Net Sales 175 97 627 Costs for production and management -150 -85 -554 Selling and administration -12 -9 -40 Profit in business unit International 13 3 33 Key ratios Margin (%) 7,4 3,1 5,3 Operating capital *) 559 284 440 Retu
Slide 23: Consolidated net sales by business unit
Consolidated net sales by business unit January - March Full year MSEK 2000 1999 1999 Stockholm Residential 449 359 1 658 Sweden 404 332 1 562 Stockholm Commercial 394 255 1 398 Business Development/Real Estate 162 217 740 International 175 97 627 Eliminations -60 -33 -160 Consolidated net sales 1 5
Slide 24: Consolidated profit by business unit
Consolidated profit by business unit January - March Full year MSEK 2000 1999 1999 Stockholm Residential 43 27 180 Sweden 16 12 72 Stockholm Commercial 41 5 45 Business Development/Real Estate 252 336 737 International 13 3 33 Group-wide costs -15 -20 -77 Operating profit 350 363 990 24
Slide 25: Project development - 12 months rolling net sales
Project development - 12 months rolling net sales NET SALES QUARTERLY (MSEK) 6000 5435 3000 CURRENT 12 MONTHS 5085 4743 5000 (MSEK) 4441 39664122 3699 4000 3419 2000 31143280 1572 3000 12891212 1362 1230 963 856 970 910 1012 2000 690 831 1000 630 1000 0 0 2 3 4 2 3 4 2 3 4 97 98 99 00 Q Q Q Q Q Q Q
Slide 26: Project development - 12 months rolling profit
Project development - 12 months rolling profit QUARTERLY PROFIT (MSEK) 400 CURRENT 12 MONTHS 365 PROFIT (MSEK) 330 350 CURRENT 12 MONTHS 8,0% MARGIN (%) 279 300 237 6,7% 250 6,5% 209 185 6,0% 200 5,9% 151 129 129 150 5,1% 5,3% 94 102 4,7% 100 84 83 4,0% 3,1% 78 69 3,0% 3,8% 4,1% 48 50 16 14 20 24 41
Slide 27: Condensed consolidated balance sheet
Condensed consolidated balance sheet MSEK 31/03/2000 31/03/1999 31/12/1999 Assets Management properties 6,757 6,128 6,855 Other fixed assets 268 248 300 Development properties 2,638 2,110 2,611 Other current assets 1,246 1,994 894 Liquid assets 315 253 390 Total 11,224 10,733 11,050 Equity and liabi
Slide 28: Development Properties
Development Properties (book value) MSEK 3000 2611 2638 2500 2 020 2000 1500 1000 813 398 480 500 0 1995 1996 1997 1998 1999 2000 March 28
Slide 29: JM building rights
JM building rights IS IN POSSESSION OF BUILDING RIGHTS FOR MORE THAN 25 000 FUTURE RESIDENCIES ALL WITH 200 000 SQM ATTRACTIVE COMMERCIAL LOCATIONS PROPERTY 29
Slide 30: JM Residential building rights - sensitivity analysis
JM Residential building rights - sensitivity analysis • 24 000 building rights into production over 8 years • Investment MSEK 2 500 and MSEK 500 conditional acquisitions ahead • MSEK 100 yield over 3 years • No inflation anticipated • Discount rate 8% - tax 28% • Revenue and project cost per apartme
Slide 31: JM Residential building rights - sensitivity analysis
JM Residential building rights - sensitivity analysis Net Present Value of the entire portfolio in MSEK at alternative assumptions of average revenue and project cost per sqm apartment space. Revenue/ Revenue/sq.m. sq.m. SEK 15 000 SEK 16 000 SEK 17 000 SEK 18 000 Cost/ Cost/sq.m. sq.m. 11 000 2 100
Slide 32: Investments commercial project
Investments commercial project MSEK 660 600 500 400 300 566 200 256 100 153 165 127 0 96 97 98 99 2000 2000 E March 32
Slide 33: Project development Real Estate
Project development Real Estate Example Rentabel space: 10 000 sqm Operating net: 20 000 000 SEK 2 000 SEK/sqm Yield: 6,5 % Value: 308 000 000 SEK 30 800 SEK/sqm Total acquisition: 56 000 000 SEK 5 600 SEK/sqm Project development: 200 000 000 SEK 20 000 SEK/sqm Total costs: 256 000 000 SEK 25 600 SE
Slide 34: Net Present Value calculation
Net Present Value calculation • Assumptions – Investments year 1 – Project development year1-2 – Rents all of year 3 – Sale year 3 – Discount rate 8 % Results in: • Net Present Value (NPV) 32 MSEK • Internal Rate of Return (IRR) 19,1 % 34
Slide 35: Financial net and financial key ratios
Financial net and financial key ratios 2000-03-31 Jan-Mar Jan-Mar Full year MSEK 2000 1999 1999 Net financial items -89 -91 -356 Financial key ratios Interest-bearing net debt 6 067 5 717 5 588 Interest-bearing loans 6 418 6 018 6 014 Average interest on loans 6,0 6,3 5,9 Debt/equity ratio 1,8 1,9 1
Slide 36: Loan Portfolio 2000-03-31
Loan Portfolio 2000-03-31 Interest Maturities MSEK % 2 000 1 952 12 10 1 500 1 412 1 416 6,5 8 6,5 6,1 6,0 5,5 1 000 6 4,2 670 611 4 500 357 2 0 0 PRI 2000 2001 2002 2003 2004> Loan amount Average interest in % 36
Slide 37: Shareholders
Shareholders Percentage of capital (votes ( votes) votes) 00-03-31 Skanska 26,5% (45,1%) Ratos 2,7% (2,0%) Nordbanken 10,5% (7,9%) AMF 2,6% (1,9%) Robur 8,1% (6,1%) Foreign SEB 6,4% (4,7%) shareholders 7,3% (5,4%) AP 5,4% (4,1%) Others 20,8%(15,7%) SPP 3,4% (2,5%) Apoteksbolaget 3,2% (2,4%) Number o
Slide 38: JM-SHARE
JM-SHARE B-Share Afy Realestate & Construction Index O traded volume Afy General Index Inn ooOs (ce) SIX 338
Slide 39: Intelligent houses
Intelligent houses The key whoComfort never Safety disappears Did I look the door? Did I book the laundry-room? JustFingerprint one button= to Keyswitch off the light in the whole house 39
Slide 40: Old times
Old times 40
Slide 41: New times
New times 41