Jm Ab · OMXSTO:JM
Jm Ab — Investor Day (November 2005)
101 slides from Jm Ab's investor day presentation, Nov 16, 2005
Slide 1: Current status and strategic focus
Current status and strategic focus Johan Skoglund, President and CEO
Slide 2: Welcome to Saltsjöbaden
Welcome to Saltsjöbaden Capital Markets Day 16 November 2005 2
Slide 3: Agenda
Agenda Current status and strategic focus Johan Skoglund, President and CEO Structured planning Lennart Henriz, Head of Business Development (Quality, Environment, IT) Strategic purchasing Sören Bergström, Director of Purchasing and Head of JM Production Stockholm operation - residential units Zdrav
Slide 4: Hotellviken
Hotellviken Saltsjöbaden • Residential units: 132 • Production start: spring 2004 • Phase 1, 26 units • Phase 2, 62 units, 2-4 rooms, 53-110 sq.m. SEK 27,500/sq.m. • Phase 3, 12 single-family homes, 4-5 rooms, 132-158 sq.m. SEK 3,88m - SEK 4,78m/home • Completion: 2007 Capital Markets Day 16 Novembe
Slide 5: Business concept
Business concept To create attractive living and working environments that satisfy individual needs both today and in the future Capital Markets Day 16 November 2005 5
Slide 6: Group
Group 2005-09-30 2004 2003 *) Net sales, SEKm 7,011 8,532 7,787 Operating profit, SEKm 702 792 478 Operating margin, % 10.0 9.3 6.1 ) Return on equity, % 22.6 ** 14.4 5.5 Earnings per share, SEK 20.20 16.90 6.60 Total assets, SEKm 7,622 8,252 9,145 *) 2003 financial year are not restated according t
Slide 7: Housing with Nordic focus
Housing with Nordic focus Establishment: Sweden - 1945 Norway - 1998 Denmark - 1999 Norway Sweden Denmark Belgium Capital Markets Day 16 November 2005 7
Slide 8: Strong home sales figures
Strong home sales figures Group No. of units sold 4.315 4 500 4 000 3.189 3 500 3 000 2.511 2 500 2 000 3 349 1 500 2 958 1 000 1 825 2 007 500 0 2002 2003 2004 Jan-Sep 2005 Q1-Q3 Capital Markets Day 16 November 2005 8
Slide 9: High level of production starts
High level of production starts Group Number 3.943 4 000 3 500 3 000 2.711 2.714 2 500 2 000 1 500 2 834 2 616 1 000 2 114 1 479 500 0 2002 2003 2004 Jan-Sep 2005 Q1-Q3 Capital Markets Day 16 November 2005 9
Slide 10: Customer satisfaction index
Customer satisfaction index Group 4,6 4,4 4.15 4.18 4.12 4,2 4 3,8 3,6 3,4 3,2 3 Total Sweden Business segment Stockholm Business segment Sweden 2002 2003 2004 Q2 2005 Capital Markets Day 16 November 2005 10
Slide 11: Continued strategic development
Continued strategic development • Growth markets in the Nordic countries – JM shall be the leading project developer of high quality residential units in the Nordic countries • Further customer- and market-focus • Expanded customer base for high-quality residential units in attractive locations – ho
Slide 12: Good market and sales
Good market and sales • Good demand on all of JM's housing markets • Continued strong sales for residential units in the form of signed contracts • Further improved profit and margin in project development business on all markets Capital Markets Day 16 November 2005 12
Slide 13: Reduced business risk in 2003-2005
Reduced business risk in 2003-2005 Share of sold and reserved residential units in ongoing production 100% 90% 80% 70% 60% 50% 40% 30% jan- mar may jul sep nov jan- mar may jul sep nov jan- mar may jul sep 03 04 05 Capital Markets Day 16 November 2005 13
Slide 14: Continued good demand throughout Sweden
Continued good demand throughout Sweden Tenant-owned apartment prices in cities, second-hand market 1997 – Q3 2005 SEK/sq.m. 40000 35000 30000 25000 20000 15000 10000 5000 0 97 98 99 00 01 02 03 04 05 3 3 3 3 3 3 3 3 3 Q Q Q Q Q Q Q Q Q 19 19 19 20 20 20 20 20 20 1 1 1 1 1 1 1 1 1 Q Q Q Q Q Q Q Q Q
Slide 15: Our priorities 2005-2006
Our priorities 2005-2006 • Customer focus • Cost focus • Asset structure • Development of expertise Entire income statement and balance sheet Capital Markets Day 16 November 2005 15
Slide 16: That's why environmental work is important
That’s why environmental work is important Customer’s Health Working Our children’s future environment Capital Markets Day 16 November 2005 16
Slide 17: Structured project planning
Structured project planning Lennart Henriz, Head of Business Development
Slide 18: Structured project development - a profitable investment
Structured project development - a profitable investment Capital Markets Day 16 November 2005 18
Slide 19: Considerable economies of scale using uniform purchasing process
Considerable economies of scale using uniform purchasing process • Internal analysis of JM's purchasing procedures during 2002 showed considerable potential for savings • These potential savings can mainly be achieved through industrial construction, which allows larger purchasing volumes, fewer sup
Slide 20: Structured planning for…
Structured planning for… ...attractive residential units in perfect condition at a low total cost. Through a more uniform and industrialized process Capital Markets Day 16 November 2005 20
Slide 21: Savings target in purchasing and planning remain
Savings target in purchasing and planning remain Annual savings Field beginning in 2007, SEKm Structured planning 60 Category strategy - strategic purchasing 57 Fewer suppliers and system support 23 Total savings target 140 Capital Markets Day 16 November 2005 21
Slide 22: Overview of purchasing
Overview of purchasing Purchasing policy Guidelines and rules Identify all JM Develop sourcing purchasing Organization Support/aids tools, optimize functions information - Central purchasing - IT aids management - Project purchasing - Statistics - Other purchasing - Accounting entry & payment - Supp
Slide 23: Industrialised process and attractive housing
Industrialised process and attractive housing Capital Markets Day 16 November 2005 23
Slide 24: Criteria
Criteria • Cost-effective • No problems for JM, customers and property owners • Important customer value (building acoustic class B, energy, environment) Capital Markets Day 16 November 2005 24
Slide 25: Approach
Approach Pre-construction procedures Element factory Capital Markets Day 16 November 2005 25
Slide 26: From JM's pre-construction procedures
From JM’s pre-construction procedures 3. Structure 3.1.2 Normal floor-to-floor height is 2,770 mm. This allows a floor-to-ceiling height of 2,500 mm. In special cases (such as exclusive projects or when technical solutions require a greater height) the floor-to-floor height can be 2,870 mm which all
Slide 27: Pre-construction procedures
Pre-construction procedures Sweden • Apartment blocks from 2003-12-01 • Single-family homes from 2004-07-01 Capital Markets Day 16 November 2005 27
Slide 28: SWOT – Structured planning
SWOT – Structured planning Implementation ready Can be developed more within Well received the Group Simple Free up more value-generating Fast time Subjective system Requires continued focus from management Not regionally adapted Capital Markets Day 16 November 2005 28
Slide 29: Planning-driven cost savings
Planning-driven cost savings Planning Standardized purchasing Time-savings Lower cost Does planning take less time - is there any Can JM obtain a lower price from suppliers beneficial effect from repetition? Can JM because lower design and production costs reduce the cost of the number of drawings?
Slide 30: Estimated cost-saving for apartment blocks
Estimated cost-saving for apartment blocks Estimated savings broken down by • Compliance with pre-construction planning, purchasing, production and planning will generate great savings after-sales in all four areas 18% • Decisions at planning phase have large impact, especially on production 82% Pro
Slide 31: Estimated cost-saving for apartment blocks and single-family homes
Estimated cost-saving for apartment blocks and single-family homes Cost savings generated by structured planning SEKm 100 80 60 40 20 0 Target Potential outcome 2007 Potential cost-saving apartment blocks and single-family homes estimated at SEK 80m/year - much of it already secured for 2005 Capital
Slide 32: Savings target in purchasing and planning remain
Savings target in purchasing and planning remain Annual savings Field beginning in 2007, SEKm Structured planning 60 Category strategy - strategic purchasing 57 Fewer suppliers and system support 23 Total savings target 140 Capital Markets Day 16 November 2005 32
Slide 33: Focus on interface
Focus on interface Yesterday… …today Capital Markets Day 16 November 2005 33
Slide 34: Structured project development
Structured project development Pre-construction procedures Management group/ Supplementary Production development group project Purchasing Capital Markets Day 16 November 2005 34
Slide 35: Strategic purchasing
Strategic purchasing Sören Bergström, Director of Purchasing and Head of JM Production
Slide 36: Strategic purchasing
Strategic purchasing Lowest total cost, with retained customer value and quality Capital Markets Day 16 November 2005 36
Slide 37: Lowest total cost
Lowest total cost • Competition - lower purchase price Purchase prices can be lowered by exposing larger volumes to competition and promising buyer loyalty • Improved logistics - lower costs Handling from suborder to full assembly is under review to reduce all costs that arise between these points •
Slide 38: Factors for success
Factors for success • Systematic work • Common product development • Broad-based support within the operation Capital Markets Day 16 November 2005 38
Slide 39: Common product development - previous order of assembly
Common product development - previous order of assembly Provisional railing fitted Steel pillars fitted Curtain walls fitted on both sides of steel pillars Fire insulation of steel pillars Window fitted Capital Markets Day 16 November 2005 39
Slide 40: Common product development - developed order of assembly
Common product development - developed order of assembly Load-bearing steel pillars are Inlet flow valves are factory-mounted in insulated against fire and integrated the wall in the wall at the factory The entire wall is mounted with a crane Windows are factory-mounted and covered with protective p
Slide 41: Three projects in Långbro Park - 163 homes
Three projects in i Långbro Park - 163 homes ”If we had not built using this method, we would have had to use the crane for lifting about 900 extra times” ”The building quickly becomes enclosed” ”The risk of crush injuries decreases” ”Fire insulation is mechanically attached at the factory, we save
Slide 42: Support in the operation
Support in the operation Optional extras Group Legal Affiars Quality and Environment Production group Pre-construction procedures After-sales Central Operations System Purchasing Purchasing council Overall objective Central Purchasing Analysis and Strategy Other opinions from JM’s purchasing the org
Slide 43: Summary category work
Summary category work Target Outcome 31 Dec 2006 7 Nov 2005 Number of categories that went through the new purchasing process 55 37 Lower purchase price 57 SEKm 63 SEKm Capital Markets Day 16 November 2005 43
Slide 44: Stockholm operation - residential units
Stockholm operation - residential units Zdravko Markovski, Head of JM Residential Stockholm
Slide 45: Positive development Stockholm
Positive development Stockholm January-September Full-year SEKm 2005 2004 2004 Net sales 2,730 2,368 3,438 Operating profit 316 194 296 Operating margin (%) 11.6 8.2 8.6 Number of available building rights 9,700 9,600 9,100 • Favourable sales • Increased prices • Stable costs • Improvement of margin
Slide 46: Continued change process
Continued change process • Project management procedures tightened - mile-stones • Project review group - provides expertise • Centralization essential project decisions • Customer’s interior design choices • Structured project planning • Strategic purchasing Capital Markets Day 16 November 2005 46
Slide 47: Stable housing prices
Stable housing prices Stockholm SEK/sq.m. 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 04 10 04 10 04 10 04 10 04 10 04 10 04 10 04 10 04 97 97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 Inner city Inner suburb Outlying areas Source: T
Slide 48: Continued reduced risk in ongoing housing production
Continued reduced risk in ongoing housing production Number 2500 2000 1500 1000 500 0 2001 2002 2003 2004 Jan-Sep 2005 Production-started units Sold units Capital Markets Day 16 November 2005 48
Slide 49: Housing area suited for young families
Housing area suited for young families share of sales-started homes (%) 50 45 40 35 30 25 20 15 10 5 0 30-50sqm 51-70sqm 71-90sqm 91-110sqm 111-130sqm 131-150sqm >150sqm 2002 2003 2004 Jan-Jun 2005 Capital Markets Day 16 November 2005 49
Slide 50: Increasing prices
Increasing prices share of sales-started homes (%) 60 50 40 30 20 10 0 <1 m 1-2 m 2-3 m 3-4 m >4 m 2002 2003 2004 Jan-Jun 2005 Capital Markets Day 16 November 2005 50
Slide 51: Young families - new predominant customer group
Young families - new predominant customer group 20% 16% 12% 8% 4% 0% 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90 Age Population Buyers Source: JM/PAR Capital Markets Day 16 November 2005 51
Slide 52: Expanded customer base
Expanded customer base Price High JM JM Low Product type Standardised Individual product architecture Capital Markets Day 16 November 2005 52
Slide 53: Stockholm 2005-2007
Stockholm 2005-2007 • Good GDP growth • Slightly rising mortgage rates • Increasing available income • Employment essentially unchanged • Net inward migration rising - positive net birth rate • Increasing number of finished residential units • Price of land rising Capital Markets Day 16 November 200
Slide 54: Probable scenario 2005-2007
Probable scenario 2005-2007 • Stable inner-city prices • Rising prices in nearby suburbs and outlying areas Capital Markets Day 16 November 2005 54
Slide 55: Larger ongoing project - Stockholm
Larger ongoing project - Stockholm Capital Markets Day 16 November 2005 55
Slide 56: Lilla Essingen
Lilla Essingen Stockholm Capital Markets Day 16 November 2005 56
Slide 57: Lilla Essingen
Lilla Essingen Stockholm • Residential units: 850 • Production start: 2000 • Phase 1-6, 712 units • Phase 7, 53 units 2-5 rooms 68-125 sq.m. SEK 36,000/sq.m. • Phase 8, 100 units 1-6 rooms 47-142 sq.m. SEK 34,000/sq.m. • Completion: 2007 Capital Markets Day 16 November 2005 57
Slide 58: Liljeholmskajen
Liljeholmskajen Stockholm Capital Markets Day 16 November 2005 58
Slide 59: Liljeholmskajen
Liljeholmskajen Stockholm • Residential units: 2,500 • Production start: 2001 • Phase 1-6, 635 units • Phase 7, 144 units 1-4 rooms, 34-124 sq.m. SEK 27,000 sq.m. • Phase 8, 85 units 1-4 rooms, 46-95 sq.m. SEK 25,500 sq.m. • Completion : 2011 Capital Markets Day 16 November 2005 59
Slide 60: Frösunda
Frösunda Stockholm Capital Markets Day 16 November 2005 60
Slide 61: Frösunda
Frösunda Stockholm • Residential units: 700 • Production start: autumn 2003 • Phase 1-2, 180 units Phase 3, 72 units 2-6 rooms 58-154 sq.m. c. SEK 23,500/sq.m. • Completion: 2011 Capital Markets Day 16 November 2005 61
Slide 62: Bolinder Strand
Bolinder Strand Järfälla Capital Markets Day 16 November 2005 62
Slide 63: Bolinder Strand
Bolinder Strand Järfälla • Residential units: 550 • Production start: autumn 2001 • Phase 1-4, 244 units • Phase 5, 45 units 1-4 rooms, 47-106 sq.m. SEK 19,500/sq.m. • Completion: 2011 Capital Markets Day 16 November 2005 63
Slide 64: Hägernäs
Hägernäs Täby Capital Markets Day 16 November 2005 64
Slide 65: Hägernäs
Hägernäs Täby • Residential units: 800 • Production start: Summer 2002 • Phase 1-4, 214 units • Phase 5, 65 units 1-6 rooms, 48-167 sq.m. SEK 29,000/sq.m. • Completion: 2010 Capital Markets Day 16 November 2005 65
Slide 66: Långbro
Långbro Stockholm Capital Markets Day 16 November 2005 66
Slide 67: Långbro
Långbro Stockholm • Residential units: 740 • Production start: 2000 • Phase 1-4, 236 units • Phase 5, 91 units 2-4 rooms, 58-100 sq.m. SEK 21,000/sq.m. • Completion: 2012 Capital Markets Day 16 November 2005 67
Slide 68: Silverdal
Silverdal • Residential units: 450 • Production start: autumn 2001 • Phase 1-4, 145 units • Phase 5, 54 single-family homes, 4-5 rooms, 119- 142 sq.m. SEK 3.5m - SEK 5.25m/home • Phase 5, 54 single-family homes • Completion: 2010 Capital Markets Day 16 November 2005 68
Slide 69: Silverdal vision 2010
Silverdal vision 2010 Capital Markets Day 16 November 2005 69
Slide 70: Concept housing
Concept housing Sten Hamberg, Head of JM Residential Sweden
Slide 71: Senior citizens
Senior citizens Capital Markets Day 16 November 2005 71
Slide 72: Today
Today 62 years old 66 years old Capital Markets Day 16 November 2005 72
Slide 73: Study of the "boomer" generation
Study of the ”boomer” generation A few key results from this study: • You aren’t senior until you are 80 - old and decrepit according to the boomers • People look forward to a second period of freedom during which they can achieve their dreams • ”Live it up and then you die” • Time can be used for f
Slide 74: Population forecast 2004-2020
Population forecast 2004-2020 ('000) 2004 2010 2015 2020 Increase 55-64 1,181 1,180 1,124 1,175 - 0.50 % 65-79 1,072 1,234 1,430 1,522 42.0 % 80- 482 487 483 519 7.70 % Total: 9,011 9,240 9,445 9,664 7.25 % 55- 30 % 31 % 32 % 33 % Source: SCB Capital Markets Day 16 November 2005 74
Slide 75: Seniorgården's business concept
Seniorgården’s business concept Senior housing Assisted living housing • Market • Market 55+ 80+ Strong growth Strong growth Financially strong buyers Strong need for care • Individual incentive • Individual incentive Desirable convenient housing Personal security, nursing care • Society’s incentive
Slide 76: Concept for senior housing
Concept for senior housing • Location – close to services (stores, communications) – neighborhood centers – ground floor one-story housing • Design of housing and community – size about 40 residential units – increased accessibility • Service and security package – cleaning, window-washing, grocery
Slide 77: A more efficient balance sheet
A more efficient balance sheet Claes Magnus Åkesson, Chief Financial Officer
Slide 78: Financial targets
Financial targets 3) Targets 2004 2003 2002 2001 2000 1) Return on equity (%) 10-15 14 6 7 30 24 Dividend, share of profit after tax (%) 50 41 75 118 37 39 Equity ratio (%) 35 42 36 34 30 31 2) Operating margin (%) 10.0 9.3 2.4 5.4 11.8 10.3 1) After tax 2) Project development margin 2000-2003 3) 20
Slide 79: Project development of JM
Project development of JM a capital-intensive operation Acquisition Project conception Management Planning Occupancy Pre-construction Construction Financing Sale/lease Capital Markets Day 16 November 2005 79
Slide 80: Strong Balance Sheet and financial flexibility
Strong Balance Sheet and financial flexibility SEKm 2005-09-30 2004-09-30 2004-12-31 Assets Project properties 2,038 2,425 2,246 Development properties 2,629 3,124 2,971 Other assets 2,955 2,425 3,035 Total 7,622 7,974 8,252 Shareholders' equity and liabilities Shareholders' equity 2,876 3,297 3,465
Slide 81: Project properties for development
Project properties for development Occupancy rate Book value SEKm annual rent 2005-09-30 2004-09-30 Full-year 2004 Residential units (tenancy rights) 99% 878 1,225 1,078 Properties under development 41% 73 660 671 Fully developed commercial properties 70% 1,087 540 497 Total 2,038 2,425 2,246 Capita
Slide 82: Maximum 4 years production in balance sheet
Maximum 4 years production in balance sheet Continued new acquisitions required No. building rights, units*) In balance Production Average 2005-09-30 sheet starts **) period, years JM Residential Stockholm 6,700 1,690 4.0 JM Residential Sweden 3,900 1,402 2.8 JM International 2,200 1,069 2.1 Group 1
Slide 83: Development properties
Development properties*) Residential and commercial building rights SEKm 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 2000 2001 2002 2003 2004 2005-09-30 *) Book value Capital Markets Day 16 November 2005 83
Slide 84: Change in development properties
Change in development properties Building rights in balance sheet Jan-Sep SEKm 2002 2003 2004 2005 Opening balance 4,048 3,871 3,631 2,971 Plus 629 664 275 597 ) Minus -806 * -904 -935 -939 Closing balance 3,871 3,631 2,971 2,629 *) of which depreciation SEK 211m Capital Markets Day 16 November 2005
Slide 85: Available building rights portfolio Q3 2005
Available building rights portfolio Q3 2005 Region No. of building rights Stockholm 9,700 Gothenburg 2,400 Malmö/Lund 2,600 Uppsala 1,700 Rest of Sweden 1,700 Oslo/Bergen 4,000 Copenhagen 750 Brussels 350 Total approximately 23,200 Capital Markets Day 16 November 2005 85
Slide 86: Reduced interest-bearing net debt and debt/equity ratio
Reduced interest-bearing net debt and debt/equity ratio SEKm times 6000 6 5000 5 4000 4 3000 3 2000 2 1000 1 0 0 2000 2001 2002 2003 2004 Sep-2005 interest-bearing net debt debt/equity ratio Capital Markets Day 16 November 2005 86
Slide 87: Towards more efficient balance sheet
Towards more efficient balance sheet Asset turnover, times 1,3 1,2 1,1 1 0,9 0,8 0,7 0,6 0,5 0,4 1998 1999 2000 2001 2002 2003 2004 Sep-05 *) *) 12-month period Capital Markets Day 16 November 2005 87
Slide 88: All cash flows contributing
All cash flows contributing Project development housing Cautious and cost-efficient Improved acquitions margins JM sells any acquired units Tenant-owner co-op. (toc) pays for land JM invoices toc Final invoice Payments in Payments out JM acquires land Production costs JM acquires any unsold units Ac
Slide 89: Strong cash flow Q3 2005
Strong cash flow Q3 2005 Group Q2 Q3 Q4 Q1 Q2 Q3 Cash Flow, SEKm 2004 2004 2004 2005 2005 2005 *) Cash flow from operating activities 1,062 293 997 516 739 216 Cash flow from investment activities -2 -9 - -40 2 22 Cash flow from financing activities -697 -336 -136 36 -1,756 3 Total cash flow for the
Slide 90: Capitalization model
Capitalization model ”Disclaimer” • The capitalization model presented here is a simplified summary of JM’s real model • Capitalization model is just one of the tools that JM’s management and Board of Directors uses to carry out an ongoing analysis of JM’s capital requirements • The Board of Directo
Slide 91: Capitalization model
Capitalization model Measure risk capital • A capitalization model measures the need of each asset for risk capital within a group • The need for risk capital is governed by the total of the Group's various operational risks • Operating risk can most accurately be defined as volatility (standard dev
Slide 92: Market assessment
Market assessment • Each type of risk capital should ideally be adjusted to market value. It should be possible to convert asset value (including surplus value) into cash and cash equivalents with relatively short notice, which is why the market value of items that are not as easily converted should
Slide 93: Definition of capital base
Definition of capital base Category Description Shareholders' equity By definition risk capital Dividend is theoretically Calculated dividend charged to equity per twelve-month period. possible Accumulated profit at interim statements conservative estimate of possible dividend - elimination of profi
Slide 94: Estimated capital base Q3 2005
Estimated capital base Q3 2005 Category SEKm Shareholders' equity 2,876 Dividend as theoretically possible -544 Intangible assets -55 Deferred tax liability 412 Surplus value development properties (gross) 1,112 Surplus value project properties 140 (gross) Capital base 3,941 Capital Markets Day 16 N
Slide 95: Definition risk capital requirement
Definition risk capital requirement Category Description Land bank and site Risk capital necessary to finance investments in non-liquid assets with engineering risk limited cash flow potential in the short- and medium term. Risk capital necessary to cover price risk for ongoing production. Capital T
Slide 96: Estimated risk capital requirement Q3 2005
Estimated risk capital requirement Q3 2005 Category Base SEKm Land bank and site engineering risk Market value building rights 1,800-2,200 Tenant-owner cooperative risk Production costs 400-600 Construction risk Sales (internal + external) 200-400 Property risk Market value properties 400-600 Risk c
Slide 97: Surplus equity – example
Surplus equity – example Category SEKm Estimated capital base Q3 2005 3,900 Minus: risk capital requirement (midpoint in interval) -3,300 Gross surplus Q3 2005 600 Plus: net profit for the period and change in assets Q4 2005 – Plus: Q1-Q3 profit minus actual dividend – Plus: reduction of capital req
Slide 98: JM looking ahead
JM looking ahead Johan Skoglund, President and CEO
Slide 99: Risks
Risks External risks Operational risks • Higher interest risks • Sales risks • Political risks • Project execution risks • Competition situation Capital Markets Day 16 November 2005 99
Slide 100: Opportunities
Opportunities External JM • Increasing population in • Available building rights JM’s main markets • Continued improvement • Continued low interest work rates • Expanded customer base Capital Markets Day 16 November 2005 100
Slide 101: JM looking ahead
JM looking ahead • Customer-focused – strong brand • Market leader – tenant-owned units • Fully 23,000 residential building rights in attractive locations • Strong balance sheet and financial flexibility • Cash flow focus – from project to Group • Industrialized process and attractive homes • Housin