Jm Ab · OMXSTO:JM
Jm Ab — Q1 2011 Earnings Presentation
30 slides from Jm Ab's earnings presentation, Apr 29, 2011
Slide 1: Interim Report January - March 2011
Interim Report January - March 2011
Slide 2: JM Group
JM Group Income: SEK 9.9 billion 1) Total assets: SEK 10.1 billion No. of building rights: 26,300 0% 15 % No. of employees: 2,171 83 % Market cap: SEK 14.4 billion Norway Sweden Finland 1% 1% Denmark Belgium 1) 12-month period 2011-04-29 ytf 2
Slide 3: Group Summary
Group Summary January – March 2011 • Revenues amounted to SEK 2,547m (1,708) of which restatement according to IFRIC 15 SEK 56m (-205). Revenue according to segment reporting shows increase of SEK 578m (-206) • Profit before tax increased to SEK 265m (93), of which restatement according to IFRIC 15
Slide 4: Group Summary
Group Summary January – March 2011 • Number of residential units sold 840 (757) • Number of housing starts 908 (749) • Earnings per share was SEK 2.20 (0.80) • Return on equity was 18.5 percent (10.8) • Cash flow from operations totaled to SEK -65m (-88). 2011-04-29 ytf 4
Slide 5: Operating profit restated according to IFRIC 15
Operating profit restated according to IFRIC 15 January - March Operating profit, SEK m 2011 2010 JM Residential Stockholm 183 112 JM Residential Sweden 68 34 JM International 24 1 JM Property Development 1 1 JM Production 13 14 Group-wide expenses -11 -11 Total as stated in segment reporting 278 15
Slide 6: Continued good demand in JM’s main markets
Continued good demand in JM’s main markets • Good demand in Sweden and Norway – low activity level in Copenhagen after some improvement • Good home sales in form of signed contracts in Sweden and Norway • The percentage of sold/reserved residential units in relation to ongoing production 79 % (83) –
Slide 7: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2000 – Q1 2011 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 10 00 01 02 03 04 05 06 07 08 09 11 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 Q Q3 1 Q3 Q Q3 20 20 20 20 20 20 20 20 20 20 20 20
Slide 8: Good home sales figures
Good home sales figures No. of units 2 000 1,713 1 800 1 600 1,408 1 400 1,207 1 200 973 1 000 800 605 661 600 400 200 358 395 320 285 212 225 174 67 125 0 2009 2010 2011 2009 2010 2011 2009 2010 2011 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2 - Q4 2011-04-29 ytf 8
Slide 9: High level of housing starts
High level of housing starts No. of units 2 000 1 800 1,604 1 600 1 400 1,102 1,230 1 200 1 000 689 800 570 600 359 400 200 364 428 327 221 164 153 0 91 46 10 2009 2010 2011 2009 2010 2011 2009 2010 2011 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2 - Q4 2011-04-29 ytf 9
Slide 10: Täby Centrum - Täby
Täby Centrum - Täby No. of residential units: approx. 180 Production starts Q1 2011 : 69 Remaining building rights: approx. 110 Completed: 2014 2011-04-29 ytf 10
Slide 11: Sockerbruksområdet - Lund
Sockerbruksområdet - Lund No. of residential units: approx. 340 Production starts Q1 2011 : 73 Remaining building rights: approx. 265 Completed: 2018 2011-04-29 ytf 11
Slide 12: Ruudshagen - Oslo
Ruudshagen - Oslo No. of residential units: approx. 53 Production starts Q1 2011 : 53 Completed: 2012 2011-04-29 ytf 12
Slide 13: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 86 80 70 60 48 50 40 36 30 31 20 10 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Stockholm Sweden International Average value 2011-04-29 ytf 13
Slide 14: 5,957 residential units in current production
5,957 residential units in current production High percentage sold/reserved implicates low Number risk in ongoing production in Q1 2011 3 500 100% 3 000 80% 2 500 2 000 60% 1 500 40% 1 000 20% 500 0 0% dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- 06 07 07
Slide 15: Residential units in current production
Residential units in current production JM Group 31 Mar 31 Mar 31 Dec 2011 2010 2010 Number of residential units 5,957 4,392 5,431 Number of residential units sold 3,899 2,635 3,495 Number of residential units reserved 803 1,023 937 Sold residential units (%) 65 60 64 Reserved residential units (%)
Slide 16: JM Residential Stockholm
JM Residential Stockholm January - March Full Year SEK m 2011 2010 2010 Income 1,045 756 3,824 Operating profit 183 112 634 Operating margin (%) 17.5 14.8 16.6 Number of available 10,700 10,700 11,100 building rights Number of residential units in current production 2,931 2,126 2,691 • Good demand a
Slide 17: JM Residential Sweden
JM Residential Sweden January - March Full Year SEK m 2011 2010 2010 Income 792 541 2,749 Operating profit 68 34 219 Operating margin (%) 8.6 6.3 8.0 Number of available building 8,900 10,100 9,600 rights Number of residential units in current production 1,953 1,371 1,708 • Good demand and sales • I
Slide 18: JM International
JM International January - March Full Year SEK m 2011 2010 2010 Income 417 336 1,570 Operating profit 24 1 48 Operating margin (%) 5.8 0.3 3.1 Number of available building 6,700 6,800 6,800 rights Number of residential units in current production 1,073 895 1,032 • Good demand and sales in Norway • L
Slide 19: JM Property Development
JM Property Development January - March Full Year SEK m 2011 2010 2010 Income 16 26 72 Operating profit 1 1 12 • Gains on property sales SEK 2m (7) – reversal of provisions • Project development of commercial properties ongoing in the Dalénum area on Lidingö – 87 % occupancy rate • Production start
Slide 20: JM Production
JM Production January - March Full Year SEK m 2011 2010 2010 Income 1) 347 349 1,496 Operating profit 13 14 91 Operating margin (%) 3.7 4.0 6.1 1) Of which internal 126 95 437 • Demand continues to show recovery • Stable income • Stable margin • Increased internal production. 2011-04-29 ytf 20
Slide 21: Available building rights portfolio
Available building rights portfolio No. of building rights Region 2011-03-31 2010-03-31 Stockholm 10,700 11,100 Malmö/Lund 3,600 3,600 Gothenburg 1) 2,100 2,700 Uppsala 2) 3,200 3,300 Norway 4,900 5,000 Copenhagen 750 750 Helsinki 150 150 Belgium 900 900 Total approximately 26,300 27,500 1) West reg
Slide 22: Higher level of development properties
Higher level of development properties Building rights in Balance Sheet Jan-Mar SEK m 2008 2009 2010 2011 Opening balance 5,282 5,620 4,990 5,374 Plus 1,571 428 1,655 415 1) 2) Minus -1,233 -1,058 -1,271 -196 Closing balance 5,620 4,990 5,374 5,593 1) Including impairment losses of SEK 320m 2) Inclu
Slide 23: Approx. 5 years production in Balance Sheet
Approx. 5 years production in Balance Sheet Increasing production rate – more balanced building rights portfolio 1) No. building rights In Balance Production Average 3) 2011-03-31 Sheet starts 2) period, years JM Residential Stockholm 6,900 1,668 4.1 JM Residential Sweden 6,100 1,336 4.6 JM Internat
Slide 24: 39 unsold residential units in the Balance Sheet – SEK 115m
39 unsold residential units in the Balance Sheet – SEK 115m SEK m 350 1) 301 300 250 200 2) 166 3) 150 138 115 115 100 50 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 1) Of which, Egholm, Denmark SEK 132m 3) Of which, Egholm, Denmark SEK 52m. 2) Of which, Egholm, Denmark SEK 98m 2011-04-29 ytf 24
Slide 25: Cash flow Q1 2011
Cash flow Q1 2011 Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2010 2010 2010 2010 2011 1) 2) Cash flow from operating activities -88 -148 -27 305 -65 Cash flow from investment activities 0 0 -4 11 41 Cash flow from financing activities 249 -293 112 -55 -38 Total cash flow for the quarter 161 -441 81 2
Slide 26: Good financial position and liquidity
Good financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 3 000 3 • Equity/Assets ratio is 40 percent (36) • Available liquidity was SEK 4,824m 2 000 2 (4,990) of which cash and cash 1 000 1 equivalents SEK 2,024m (2,190) • Unutilized overdraft facilities and
Slide 27: Net financial items
Net financial items January – March 2011, SEK m Financial income 9 Financial income 7 1) Revaluation and currency hedging 2 Financial expenses -23 Interest expenses -13 Revaluation and currency hedging 1) -2 Interest expense pensions -8 Net financial items -14 1) Refers to claims on JM International
Slide 28: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q1 2011 (Q4 2010) Cost-based effect Revaluation effect Sales effect SEK 147m (198) + SEK 262m (336) + SEK -5m (-27) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about f
Slide 29: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Group 134 218 167 336 262 Interna- Business segments Stockholm Sweden tional Total Q4 2010 277 51 8 336 Q1 2011 158 62 42 262 The net of positive and negative revaluation effects in residential projects during Q1 20
Slide 30: JM today
JM today • Customer-focused – strong brand • 26,300 residential building rights in attractive locations – high quality and good distribution • Improved economy and fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet and proactive capacity – focus on