Jm Ab · OMXSTO:JM
Jm Ab — Q3 2000 Earnings Presentation
36 slides from Jm Ab's earnings presentation, 2000
Slide 1: JM Group Presentation
JM Group Presentation JMs’ BUSINESS CONCEPT To create attractive living and working environments that satisfy individual needs both today and in the future 1
Slide 2: The JM Group - Summary
The JM Group - Summary • Swedish market leader in developing tenant-owned residencies • Largest building right portfolio in the Nordic region • Selective project development - commercial properties • Portfolio of fully developed properties reduced strongly • Increased cash flow focus • Strong financ
Slide 3: History and background
History and background 1 1945 Contractor John Mattson establishes John Mattsons Byggnads AB 1965 John Mattson divests the company to AB Industrivärden 1982 JM listed on the Stockholm stock exchange 1987 Skanska acquires Industrivärden´s shareholding and becomes majority owner in JM 1995 Through sale
Slide 4: History and background
History and background 2 1996 Through share sales by major owners, an additional spread of ownership and increased trading is achieved 1997/98 Major structural deal gives an increased equity/assets ratio and flexibility. Establishment in Norway 1999 Continuous sale of developed properties and growth
Slide 5: Shareholders percentage of capital (votes) 00-09-30
Shareholders percentage of capital (votes) 00-09-30 Skanska 26.5% (45.1%) AMF Försäkring 1.9% (1.4%) Metall 1.8% (1.4%) Nordbanken 10.9% (8.0%) Apoteksbolaget 1.8% (1.3%) SEB 8.0% (6.0%) Robur 5.7% (4.3%) Foreign shareholders 14.1% (10.6%) AP 5.4% (4.1%) Skandia 3.7% (2.8%) Others 15.2% (11.3%) SPP
Slide 6: Concentration to core competence
Concentration to core competence • Long term quality and environmental priority • Growth - 4,500 residencies annually • Selective emphasis on commercial project development • Project development margin above 12 per cent • High turnover of developed properties - SEK 2.0 billion • Cash flow focus • Op
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: The JM organization
The JM organization President CEO Legal Affairs/ Development Group Staffs Finance/Treasury Finance Treasury Corporate Communications Human Resources Business Support Business units Project Project Business Development Project Development Development Project Residential Development Commercial Managem
Slide 9: Population growth and housing starts for multi-dwelling complexes 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 9
Slide 10: Value development for housing in preferred locations (Stockholm)
Value development for housing in preferred locations (Stockholm) SEK/sqm Tenant-owned apartments Residential properties 10
Slide 11: Value development for commercial properties in preferred locations
Value development for commercial properties in preferred locations (nominal values) values) SEK/sqm 11
Slide 12: Important events 2000
Important events 2000 • JM sells fully developed properties for SEK 2.1 billion. Profit MSEK 510 • Acquisition of - land on Kungsholmen, in Stockholm for MSEK 295 - “Lustgården”, Kungsholmen for MSEK 262 - land in Gustavsberg, in Stockholm for MSEK 350 • Creates development company with Peab and Wih
Slide 13: The JM Group
The JM Group Financial summary January - September 2000 • Profit after financial items amounted to MSEK 973 (461) • Earnings per share over the past twelve months has been SEK 24 • Return on equity over the past twelve months has been 24 per cent 13
Slide 14: The JM Group
The JM Group Financial summary January - September 2000 • Profit in project development increased by 102 per cent to MSEK 420 (208) and the profit margin improved to 9,9 (5,9) per cent • Net sales of the Group increased by 16 per cent to MSEK 4,755 (4,088) • Property sales of MSEK 2,100 (1,510) gave
Slide 15: The JM Group - pre tax profit
The JM Group - pre tax profit MSEK Profit from sale of management properties 1000 973 Profit before sale of management properties 800 510 600 461 400 250 278 463 200 127 183 123 0 1998 1999 2000 Jan - Sept Jan - Sept Jan - Sept 15
Slide 16: Sale of management properties
Sale of management properties MSEK Profit 2500 2000 510 1500 380 330 1000 135 500 36 0 1996 1997 1998 1999 2000 Sept 16
Slide 17: Project development - 12 months rolling net sales
Project development - 12 months rolling net sales NET SALES QUARTERLY (MSEK) 5824 6000 5435 5587 3000 CURRENT 12 MONTHS 5085 4743 5000 (MSEK) 4441 3966 4122 3699 4000 3280 3419 2000 3114 1572 3000 1289 1212 1362 1441 1449 1230 963 970 910 1012 2000 856 1000 1000 0 0 4 2 3 4 2 3 4 2 3 98 99 00 Q Q Q
Slide 18: Project development - 12 months rolling profit
Project development - 12 months rolling profit 549 10,0% QUARTERLY PROFIT 9,4% 500 (MSEK) CURRENT 12 MONTHS 420 PROFIT (MSEK) 400 CURRENT 12 MONTHS 365 8,0% MARGIN (%) 330 7,5% 279 6,7% 300 6,5% 237 5,9% ) 6,0% 209 213* 185 5,3% 200 151 5,1% 129 4,7% 129 102 124 94 4,1% 4,0% 3,8% 78 84 83 100 69 3,0
Slide 19: Consolidated net sales by business unit
Consolidated net sales by business unit January - September Full year MSEK 2000 1999 1999 Stockholm Residential 1 653 1 301 1 658 Sweden 1 188 1 051 1 562 Stockholm Commercial 1 122 934 1 470 Business Development/Real Estate 426 527 668 International 537 383 627 Eliminations -171 -108 -160 Consolida
Slide 20: Consolidated profit by business unit
Consolidated profit by business unit January - September Full year MSEK 2000 1999 1999 Stockholm Residential 274 140 180 Sweden 76 41 72 Stockholm Commercial 96 43 87 Business Development/Real Estate 688 556 695 International 52 17 33 Group-wide costs -42 -61 -77 SPP - surplus 78 - - Operating profi
Slide 21: Condensed consolidated balance sheet
Condensed consolidated balance sheet MSEK 30/09/2000 30/09/1999 31/12/1999 Assets Management properties 5 993 6 057 6 855 Other fixed assets 264 258 300 Development properties 2 725 2 536 2 611 Other current assets 1 882 1 228 894 Liquid assets 280 181 390 Total 11 144 10 260 11 050 Equity and liabi
Slide 22: Development properties
Development properties (book value) MSEK 3000 2 725 2 611 2500 2 020 2000 1500 1000 813 398 480 500 0 1995 1996 1997 1998 1999 2000 Sept 22
Slide 23: JM building rights
JM building rights IS IN POSSESSION OF BUILDING RIGHTS FOR MORE THAN 25 000 FUTURE RESIDENCIES 200 000 SQM ALL WITH COMMERCIAL ATTRACTIVE PROPERTY LOCATIONS 23
Slide 24: Development, management and project property map
l Development property l Management property l Project property 24
Slide 25: Lilla Essingen
Lilla Essingen Electrolux, Electrolux, Lilla Essingen. Essingen. 700 - 800 apartments and 6 000 - 7 000 sqm commercial area. Acquisition: MSEK 300 Start of production: 1999- Q 4. Expected average price: 37.000 SEK/sqm incl. VAT 25
Slide 26: Sjövik, Årstadal
Sjövik, Årstadal Sjövik,, Årstadal. Sjövik Årstadal. approx. 2 000 apartments. Acquisition: MSEK 520 Start of production: end of 2000 Expected average price: 33.000 SEK/sqm incl. VAT 26
Slide 27: Marstrand
Marstrand Marstrand. Marstrand 5 phases approx. 15 apartments each, 2 - 6 room/apartment, 74 -155 sqm Start of production production: 1998 phase 1. Expected average price: 22.000 SEK/sqm incl. VAT 27
Slide 28: Investments commercial projects
Investments commercial projects MSEK 600 500 400 660 300 566 541 200 256 100 127 153 0 96 97 98 99 2000 2000 E Sept 28
Slide 29: Intelligent houses - concept
Intelligent houses - concept Customers´ Needs Simple Comfortable Safe Spare Time 29
Slide 30: JM - share October 2000
JM - share October 2000 B-Share Afv Realestate & Traded Volume Afv General Index Construction Index In 000´s 30
Slide 31: Appendix
Appendix 1. Business unit Residential Stockholm 2. Business unit Sweden 3. Business unit Commercial Stockholm 4. Business unit Business Development / Real Estate 5. Business unit International 31
Slide 32: Business unit Residential Stockholm
1. Business unit Residential Stockholm January - September Full year MSEK 2000 1999 1999 Net Sales 1 653 1 301 1 658 Costs for production and management -1 326 -1 100 -1 396 Selling and administration -94 -61 -82 Gross profit 233 140 180 Property sales 41 Profit in Stockholm Residential 274 140 180
Slide 33: Business unit Sweden
2. Business unit Sweden January - September Full year MSEK 2000 1999 1999 Net Sales 1 188 1 051 1 562 Costs for production and management -1 048 -952 -1 420 Selling and administration -64 -58 -70 Gross profit 76 41 72 Key ratios Margin (%) 6,4 3,9 4,6 Operating capital *) 604 291 333 Return on opera
Slide 34: Business unit Commercial Stockholm
3. Business unit Commercial Stockholm January - September Full year MSEK 2000 1999 1999 Net Sales 1 122 934 1 470 Costs for production and management -982 -831 -1 305 Selling and administration -74 -60 -78 Gross profit 66 43 87 Gains on the sale of operations 30 Profit in Stockholm Commercial 96 43
Slide 35: Business unit Business Development / Real Estate
Business unit 4. Business Development / Real Estate January - September Full year MSEK 2000 1999 1999 Net Sales 426 527 668 Costs for production and management -149 -198 -255 Selling and administration -38 -51 -48 Gross profit 239 278 365 Property sales 449 278 330 Profit in Stockholm Residential 68
Slide 36: Business unit International
5. Business unit International January - September Full year MSEK 2000 1999 1999 Net Sales 537 383 627 Costs for production and management -478 -343 -554 Selling and administration -27 -23 -40 Gross profit 32 17 33 Gains on the sale of operations 20 Profit in Stockholm Residential 52 17 33 Key ratio