Jm Ab · OMXSTO:JM
Jm Ab — Q1 2014 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Apr 25, 2014
Slide 1: Interim report January – March 2014
Interim report January – March 2014 April 25, 2014
Slide 2: JM Group
JM Group Revenue: SEK 12.9 billion 1) Total assets: SEK 11.2 billion No. of building rights: 27,700 No. of employees: 2,169 1% 18 % Market Cap: SEK 18.0 billion 2) 80 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 235 per share 2 │ 2014-02-12 │ ytf
Slide 3: Group Summary – segment reporting
Group Summary January – March 2014 According to segment reporting • Revenue increased to SEK m % SEK 3,037m (2,875) 1 800 18 1 600 16 • Operating profit increased to 1 400 14 1 200 12 SEK 379m (335) 1 000 10 • Operating margin increased 800 8 600 6 to 12.5 percent (11.7) 400 4 200 2 • Gains from pro
Slide 4: Group Summary – IFRIC
Group Summary January – March 2014 According to IFRIC 15 • Revenue increased to SEK 2,969m (2,698) • Operating profit increased to SEK 391m (288) • Profit were strengthened by a positive restatement for JM International with SEK 12m (-47) • Profit before tax increased to SEK 374m (273) • Earnings pe
Slide 5: Group Summary
Group Summary January – March 2014 • Number of residential units sold 697 (709) • Number of housing starts 694 (574) • Cash flow from operations was SEK -241m (-309), investments in development properties and increased holding of unsold residential units • Building rights portfolio 27,700 (27,800) 5
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - March Operating profit, SEK m 2014 2013 JM Residential Stockholm 303 247 JM Residential Sweden 51 54 JM International 18 24 JM Property Development 8 11 JM Production 13 12 Group-wide expenses -14 -13 Total as stated in segment reporting 379 335 Resta
Slide 7: Favorable development for housing operations
Favorable development for housing operations • Demand in Stockholm continued to improve and demand in the rest of Sweden developed favorably. Demand in Norway recovered somewhat during the first quarter • Demand in Stockholm strengthens the Group’s operating margin • The percentage of sold/reserved
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q1 2005 – Q1 2014 SEK/sq.m. 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sthlm, Inner city Sthlm, Nearby subur
Slide 9: Unchanged level of sold residential units
Unchanged level of sold residential units Number of units 1 800 1,513 1 600 1,307 1 400 1 200 902 951 1 000 1 173 743 800 999 547 600 714 726 600 400 415 254 200 308 340 395 176 237 217 254 143 132 85 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm JM Residenti
Slide 10: Increased level of housing starts
Increased level of housing starts Number of units 1 800 1 600 1,507 1,404 1 400 1 200 1 000 887 1 162 861 1 090 779 800 600 488 674 744 626 400 415 200 200 345 314 396 153 187 212 133 200 73 86 0 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm JM Residential Sw
Slide 11: Kvarnbacken – Söderdalen
Kvarnbacken – Söderdalen Jakobsberg - Järfälla No. of residential units, approx. 1,250 Production starts Q1 2014 72 Completed in 2015 11 │ 2014-02-12 │ Press- och analytikerpresentation 2014-02-12 /ytf
Slide 12: Kronhjulet – Juvelområdet
Kronhjulet – Juvelområdet Gothenburg No. of residential units, approx. 700 Production starts 77 Q1 2014 Completed in 2015 12 │ 2014-02-12 │ Press- och analytikerpresentation 2014-02-12 /ytf
Slide 13: Merihiekka
Merihiekka Esbo - Finland No. of residential units 86 Production starts 39 Q1 2014 Completed in 2015 13 │ 2014-02-12 │ Press- och analytikerpresentation 2014-02-12 /ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 110 100 99 90 80 70 60 53 50 53 40 30 20 17 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 Stockholm Sweden International Average value 14 │ 2014-02-12 │ ytf
Slide 15: 5,549 residential units in current production
5,549 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q1 2014 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2011 2011 2012 2012 2013 2013 2014 JM
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Mar 31 Dec 31 Dec 2014 2013 2012 Number of residential units 1) 5,549 5,609 5,988 Number of residential units sold 2,921 2,858 3,258 Number of residential units reserved 1,072 914 667 Sold residential units, % 55 54 55 Reserved residential units, %
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - March Full-year SEK m 2014 2013 2013 Revenue 1,279 1,311 5,254 Operating profit 303 247 1,167 Operating margin, % 23.7 18.8 22.2 Number of available building rights 11,000 11,200 11,200 Number of residential units in current production 2,741 2,777 2,516 • Demand co
Slide 18: JM Residential Sweden
JM Residential Sweden January - March Full-year SEK m 2014 2013 2013 Revenue 707 704 2,860 Operating profit 1) 51 54 221 Operating margin, % 7.2 7.7 7.7 Number of available building rights 8,700 9,400 8,700 Number of residential units in current production 1,317 1,553 1,460 1) Of which property sale
Slide 19: JM International
JM International January - March Full-year SEK m 2014 2013 2013 Revenue 617 576 2,745 Operating profit 1) 18 24 126 Operating margin, % 2.9 4.2 4.6 Number of available building rights 7,200 6,500 7,100 Number of residential units in current production 1,291 1,402 1,325 1) Of which property sales 3 2
Slide 20: JM Property Development
JM Property Development January - March Full-year SEK m 2014 2013 2013 Revenue 53 23 314 Operating profit 1) 8 11 37 Number of available building rights 800 700 700 Number of residential units in current production 200 108 308 1) Of which property sales 0 10 13 • An option agreement was signed with
Slide 21: JM Production
JM Production January - March Full-year SEK m 2014 2013 2013 1) Revenue 447 371 2,011 Operating profit 13 12 73 Operating margin, % 2.9 3.2 3.6 1) Of which internal 66 110 532 • Good demand • Solid orders • Increased revenue • Stable margin. 21 │ 2014-02-12 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 03/31/2014 03/31/2013 1) Stockholm 11,800 11,900 1) Malmö/Lund 3,700 4,400 Gothenburg 2) 1,900 1,900 Uppsala 3) 3,100 3,100 Norway 5,400 4,800 Copenhagen 700 700 Helsinki 700 600 Belgium 400 400 Total approximately 27,700 27,800 1) Of
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Jan-Mar SEK m 2011 2012 2013 2014 Opening balance 5,374 5,816 5,769 5,988 Plus 1,585 1,259 1,274 281 Minus -1,143 -1,306 -1,055 -186 Closing balance 5,816 5,769 5,988 6,083 23 │ 2014-02-12 │ ytf
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet No. building rights 1) In Balance Housing Average 2) 3) 03/31/2014 Sheet starts period, years JM Residential Stockholm 7,600 1,486 5.1 JM Residential Sweden 5,400 886 6.1 JM International 4,500 501 9.0 JM Property Development 100 200 0.5 Group 17,600 3,073
Slide 25: 111 unsold residential units in the Balance Sheet, SEK 425m
111 unsold residential units in the Balance Sheet, SEK 425m SEK m 500 439 425 401 400 327 325 300 200 100 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 25 │ 2014-02-12 │ ytf
Slide 26: Cash flow
Cash flow Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2013 2013 2013 2013 2014 From operating activities 1) 2) -309 122 111 974 -241 From investing activities 0 2 -1 0 -7 From financing activities -11 -671 -116 -189 5 Total cash flow for the quarter -320 -547 -6 785 -243 Cash and cash equivalents end
Slide 27: Strong financial position and liquidity
Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 2 000 2 • Equity/Assets ratio 41 percent (38) • Available liquidity was SEK 4,942m (4,953) of which cash and cash 1 000 1 equivalents SEK 2,142m (2,153) • Unutilized overdraft facilities and 0 0 credi
Slide 28: Net financial items
Net financial items January – March 2014, SEK m Financial income 7 Financial income 5 Revaluation/currency hedging 1) 2 Financial expenses -24 Interest expenses -13 Revaluation/currency hedging 1) -2 Interest expense pensions -9 Net financial items -17 1) Refers to claims on JM International. 28 │ 2
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q1 2014 (Q4 2013) Cost-based effect SEK 214m (263) + Revaluation effect SEK 289m (291) + Sales effect SEK 16m (65) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Group 169 174 176 291 289 Interna- Business segment Stockholm Sweden tional Total Q4 2013 227 42 22 291 Q1 2014 231 55 3 289 The net of positive and negative revaluation effects in residential projects during Q1 201
Slide 31: JM today
JM today • Customer focused – strong brand • 27,700 building rights in attractive locations • Uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet – focus on cash flow • Well balanced risk profile •