Jm Ab · OMXSTO:JM
Jm Ab — Q3 2001 Earnings Presentation
38 slides from Jm Ab's earnings presentation, Oct 24, 2001
Slide 1: The JM Group Company Presentation
The JM Group Company Presentation January – September 2001 24 October 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: Financial and non-financial targets
Financial and non-financial targets Target 2000 1999 1998 Return on equity 5 yrs weighted (%) 15 14 13 12 Dividend share of profit after tax (%) 50 39 50 45 Equity/assets ratio (%) 30 33 28 27 Project development margin (%) 12,0 10,3 6,5 4,7 Building rights for production, number 4 500 3 000 2 300 2
Slide 5: Ownership structure
Ownership structure Share of capital per 30 of September 2001 SEB funds and SHB funds 3,2 foundations 18.0 Alecta (former SPP) 2.9 Nordea funds 6.4 Second Swedish National Swedbank funds 5.6 Pension Fund 2,7 AMF Pension 4.7 AFA Insurance 2,4 Skandia 3.8 Foreign shareholders 10.5 Stefan Persson Other
Slide 6: 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 5
Slide 7: Organisation
Organisation CEO Group staffs Carl Eric Stålberg Legal Affairs/Development Urban Lilja Finance/Treasury Claes Magnus Åkesson Corporate Communications Caroline Burén Human Resources Göran Malmberg Operational Development Lennart Henriz Business units JM JM JM JM Residential Commercial Production Inte
Slide 8: Project development
Project development Acquisition Concept Management Planning Occupancy Pre-construction Construction Financing Sale/rental 7
Slide 9: Building rights
Building rights • More than 27 000 building rights • 200 000 sq.m. of commercial space in Stockholm • Well situated 8
Slide 10: 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. 9
Slide 11: Vallgossen
Vallgossen Stockholm • No. of units: 126 • Production period: 2000-2002 • Anticipated average price level: approx. SEK 40,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 42 (SEK 4,200/sq.m.) 10
Slide 12: Liljeholmskajen
Liljeholmskajen Stockholm • No. of units: approx 2,500 • Production period: 2001-2007 • Groundbreaking: Aug 30, opening of InfoCenter • Anticipated average price level: approx. SEK 33,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 520 (SEK 2,500/sq.m.) 11
Slide 13: Hammarby Sjöstad
Hammarby Sjöstad Stockholm • No of units: 280 (sales started) • Production period: 2000-2002 • Anticipated average price level: approx. SEK 40,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 80 (SEK 4,000/sq.m.) 12
Slide 14: Eriksberg
Eriksberg Gothenburg • No of units: approx 220 • Production period: 1998- 2002 • Anticipated average price: SEK 25,000 sq.m. (incl. VAT) • Acquisition price: MSEK 38 (SEK 2,800 sq.m.) 13
Slide 15: Frösunda Torg
Frösunda Torg Stockholm 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: Ekebergskrenten
Ekebergskrenten Oslo • No of units: 58, 3 - 4 rooms, 64 -152 sq.m. Terraces up to 150 sq.m. • Production period: 2000 - 2002 • Anticipated average price: SEK 33,000/sq.m. (incl. VAT) • Acquisition price:MSEK 29 (SEK 4 700 sq.m.) 16
Slide 18: Gripsholm
Gripsholm Copenhagen • 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: Housing production and population growth in Stockholm
Housing production and population growth in Stockholm Number 25 000 20 000 15 000 10 000 5 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001E Population growth Fully developed residential units 18
Slide 20: Price development – tenant-owned apartments
Price development – tenant-owned apartments July – September 2001 Percentage change vs July-Sept 2000 10% 9% Percentage change vs April-March 2001 8% 6% 4% 3% 2% 2% 0% 0% -2% -4% -6% -8% -10% -8% -8% Sweden Stockholm City Greater Stockholm Source: Svensk Fastighetsförmedling 19
Slide 21: Price development – tenant-owned apartments
Price development – tenant-owned apartments Rolling 3-month average vs previous 3-month Stockholm City Percentage change Jan-March 4% vs Oct-Dec 00-01 3% 3% Percentage change Feb-April vs Nov-Jan 00-01 2% Percentage change March-May 1% vs Dec-Feb 00-01 Percentage change April-June 0% vs Jan-March 20
Slide 22: Quarterly prices – tenant-owned apartments
Quarterly prices – tenant-owned apartments Stockholm City SEK/sq.m. Source: Mäklarsamfundet 21
Slide 23: Quarterly prices – tenant-owned apartments
Quarterly prices – tenant-owned apartments Stockholm – local districts SEK/sq.m. 01-3 Source: Mäklarsamfundet 22
Slide 24: Housing purchase – affordability
Housing purchase – affordability Monthly salary – two individuals 2 * 25 000 SEK Size of flat 85 sq.m. Investment 25 000 SEK / sq.m. Fee to the condominium 4 600 SEK / month Borrowing 90 per cent 1/3 of income before tax used for housing 23
Slide 25: Purchase power – housing
Purchase power – housing No. of households in Greater Stockholm by price level No. of households SEK 15,000 left for other consumption 300 000 247 489 197 892 200 000 150 388 100 000 0 SEK 10,000/sq.m. SEK 20,000/sq.m. SEK 30,000/sq.m. Investment by household 24
Slide 26: 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 25
Slide 27: Highlights of 2001
Highlights of 2001 • Robust growth in net sales, profit and margin in project development • Positive development in the international operations • Extensive sales of fully developed properties • Greater selectivity in acquisition of building rights • Stabile demand and prices for newly produced hous
Slide 28: Group summary
Group summary January – September 2001 • Profit after financial items increased by 33 per cent to MSEK 1 297 (973) • Return on equity over the past 12-month period was 29 per cent • Earnings per share over the past 12-month period amounted to SEK 33 27
Slide 29: Group summary
Group summary January – September 2001 • Profit in project development increased by 45 per cent to MSEK 607 (420) and the margin improved to 10.7 (9.9) per cent • Net sales increased by 28 per cent to MSEK 6 090 (4 755) • Property sales of MSEK 2 857 (2 100) provided capital gains of MSEK 789 (510)
Slide 30: Project development
Project development Net sales 3 000 7628 8 000 7 000 2 500 5 824 6 000 1 943 1971 1961 2 000 4 743 1 753 5 000 1 500 4 000 3 000 1 000 2 000 500 1 000 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1999 2000 2001 By quarter (MSEK) Rolling 12-month average 29
Slide 31: Project development
Project development Profit 900 15% 824 800 13% 700 600 549 11% 10,8% 500 9% 9,4% 400 279 300 252 7% 217 196 200 159 5,9% 5% 100 0 3% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1999 2000 2001 By quarter (MSEK) Rolling 12-month average (MSEK) Rolling 12-month margin (%) 30
Slide 32: Net sales by business unit
Net sales by business unit January-Sept July-Sept Oct-Sept Full Year MSEK 2001 2000 2001 2000 2000/01 2000 Stockholm Residential 2 415 1 653 820 586 3 183 2 421 Stockholm Commercial 1 323 1 122 424 372 1 827 1 626 Sweden 1 370 1 188 440 370 1 985 1 803 Business Development/ Real Estate 278 426 57 13
Slide 33: Operating profit by business unit
Operating profit by business unit January-Sept July-Sept Oct-Sept Full year MSEK 2001 2000 2001 2000 2000/01 2000 Stockholm Residential 346 274 122 129 450 378 Stockholm Commercial 158 96*) 69 29 208 146*) Sweden 122 76 59 41 184 138 Business Development/ Real Estate 907 688 93 271 981 762 Internati
Slide 34: Consolidated balance sheet
Consolidated balance sheet MSEK 30/ 09/ 2001 30/ 09/ 2000 31/ 12/ 2000 Assets Management properties 5 296 5 993 6 445 Development properties 3 686 2 725 3 105 Other assets 3 794 3 226 2 547 Total 12 776 11 944 12 097 Equity and liabilities Equity 3 659 3 618 3 770 Provisions and liabilities 9 117 8
Slide 35: Management properties
Management properties MSEK Target 2001-09-30 2000-12-31 Fully developed properties 2000*) 4 213 4 286 Properties under development 438 1 522 Properties for further develop. 645 637 Total 5 296 6 445 *) Book value 34
Slide 36: Property sales in Sept 2001
Property sales in Sept 2001 MSEK 3 000 2 500 789 2 000 535 1 500 380 330 1 000 135 500 36 0 1996 1997 1998 1999 2000 2001 Sept Capital gains 35
Slide 37: 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 2001 Sept 36
Slide 38: 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 – 10 per cent – at SEK 233 per share – cancellation of repurchased shares • So f