Jm Ab · OMXSTO:JM
Jm Ab — Q1 2015 Earnings Presentation
32 slides from Jm Ab's earnings presentation, Apr 22, 2015
Slide 1: Interim report January – March 2015
Interim report January – March 2015 April 22, 2015
Slide 2: JM Group
JM Group Revenue: SEK 14.5 billion 1) Total assets: SEK 11.9 billion No. of building rights: 29,700 No. of employees: 2,228 1% 17 % Market Cap: SEK 21.0 billion 2) 81 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 280 per share 2 │ 2015-04-22 │ ytf
Slide 3: Group Summary – segment reporting
Group Summary January – March 2015 According to segment reporting • Revenue increased to SEK m % SEK 3,417m (3,037) 2 000 20 1 800 18 • Operating profit was 1 600 16 1 400 14 SEK 372m (379) 1 200 12 1 000 10 • Operating margin decreased 800 8 to 10.9 percent (12.5) due to a 600 6 change in the proje
Slide 4: Group Summary – According to IFRIC
Group Summary January – March 2015 According to IFRIC 15 • Revenue increased to SEK 3,300m (2,969) • Operating profit decreased to SEK 361m (391) • Profit before tax decreased to SEK 342m (374) • Earnings per share amounted to SEK 3.50 (3.70) • Return on equity increased to 27.4 percent (26.1) 4 │ 2
Slide 5: Group Summary
Group Summary January – March 2015 • Number of residential units sold 843 (697) • Number of housing starts 748 (694) • Cash flow from operations was SEK -273m (-241), including payment for the Marievik property of SEK 765m • Building rights portfolio 29,700 (27,700) 5 │ 2015-04-22 │ ytf
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - March Operating profit, SEK m 2015 2014 JM Residential Stockholm 263 303 JM Residential Sweden 60 51 JM International 33 18 JM Property Development 15 8 JM Construction 16 13 Group-wide expenses -15 -14 Total as stated in segment reporting 372 379 Res
Slide 7: Good demand and strong sales
Good demand and strong sales • Demand in Sweden and Norway continued to increase during the first quarter • Strong sales in Sweden and Norway • A geographic change in the project composition, higher costs for land and more normalized revaluation effects in completed projects are having a negative im
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q1 2006 – Q1 2015 SEK/sq.m. 90 000 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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sthlm, Inner city Sthlm, Nearb
Slide 9: Higher level of sold residential units
Higher level of sold residential units Number of units 1 800 1,513 1,553 1 600 1 400 1 200 951 981 1 000 1 158 1 173 800 607 547 600 714 764 400 415 522 254 200 340 395 375 237 217 267 201 254 54 132 85 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 JM Residential Stockholm JM Residen
Slide 10: Somewhat increased level of housing starts
Somewhat increased level of housing starts Number of units 1 800 1 600 1,505 1,404 1 400 1 200 1,003 1 000 1 109 861 1 090 800 653 600 791 488 674 400 567 284 415 200 200 314 396 351 187 212 265 200 73 86 132 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 JM Residential Stockholm JM R
Slide 11: Kajhusen, Dalénum
Kajhusen, Dalénum Lidingö No. of residential units 800 Housing starts Q1 2015 103 Completed in 2017 11 │ 2015-04-22 │ ytf
Slide 12: Galjonen, Limhamnskajen
Galjonen, Limhamnskajen Malmö No. of residential units approx. 200 Housing starts Q1 2015 37 Completed in 2016 12 │ 2015-04-22 │ ytf
Slide 13: Damsgård Brygge
Damsgård Brygge Bergen, Norway No. of residential units 125 Housing starts Q1 2015 54 Completed in 2017 13 │ 2015-04-22 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts Number per phase, residential homes 110 100 90 88 80 70 60 50 54 48 40 30 28 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Stockholm Sweden International Average value 14 │ 2015-04-22 │ ytf
Slide 15: 6,635 residential units in current production
6,635 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q1 2015 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 2011 2011 2012 2012 2013 2013 2014 2014 2015 JM
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Mar 31 Dec 31 Dec 2015 2014 2013 Number of residential units 1) 6 635 6,375 5,609 Number of residential units sold 3 764 3,387 2,858 Number of residential units reserved 1 487 1,249 914 Sold residential units, % 61 57 54 Reserved residential units,
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - March Full Year SEK m 2015 2014 2014 Revenue 1,545 1,279 5,692 Operating profit 1) 263 303 1,278 Operating margin, % 17.0 23.7 22.5 Number of available building rights 11,900 11,000 11,900 Number of residential units in current production 3,332 2,741 3,293 1) Of wh
Slide 18: JM Residential Sweden
JM Residential Sweden January - March Full Year SEK m 2015 2014 2014 Revenue 737 707 2,764 Operating profit 1) 60 51 216 Operating margin, % 8.1 7.2 7.8 Number of available building rights 9,300 8,700 9,400 Number of residential units in current production 1,758 1,317 1,528 1) Of which property sale
Slide 19: JM International
JM International January - March Full Year SEK m 2015 2014 2014 Revenue 636 617 2,942 Of which Norway 562 537 2,563 Operating profit 1) 33 18 135 Of which Norway 34 30 182 Operating margin, % 5.2 2.9 4.6 Of which Norway 6.0 5.6 7.1 Number of available building rights 7,900 7,200 7,500 Number of resi
Slide 20: JM Property Development
JM Property Development January - March Full Year SEK m 2015 2014 2014 Revenue 47 53 401 Operating profit 1) 15 8 51 Number of available building rights 600 800 600 Number of residential units in current production 430 200 430 1) Of which property sales 13 - 12 • Project with 97 rental units in the
Slide 21: JM Construction
JM Construction January - March Full Year SEK m 2015 2014 2014 Revenue 1) 554 447 2,456 Operating profit 16 13 81 Operating margin, % 2.9 2.9 3.3 1) Of which internal 102 66 386 • Good demand • Solid orders • Increased revenue • Stable margin 21 │ 2015-04-22 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 03/31/2015 03/31/2014 1) 1) Stockholm 12,500 11,800 Malmö/Lund 3,700 3,700 Gothenburg 2) 2,300 1,900 Uppsala 3) 3,300 3,100 Norway 5,900 5,400 Copenhagen 500 700 Helsinki 1,300 700 Belgium 200 400 Total approximately 29,700 27,700 1)
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Jan-Mar SEK m 2012 2013 2014 2015 Opening balance 5,816 5,769 5,988 6,802 Plus 1,259 1,274 2,273 504 Minus -1,306 -1,055 -1,459 -467 Closing balance 5,769 5,988 6,802 6,839 23 │ 2015-04-22 │ ytf
Slide 24: 5 years production in Balance Sheet
5 years production in Balance Sheet No. of building rights 1) In Balance Housing 2) Average 03/31/2015 Sheet starts period, years 2) JM Residential Stockholm 8,200 1,460 5.6 JM Residential Sweden 5,100 1,056 4.8 JM International 4,200 699 6.0 JM Property Development 100 284 - Group 17,600 3,499 5.0
Slide 25: 81 unsold residential units in the Balance Sheet, SEK 318m
81 unsold residential units in the Balance Sheet, SEK 318m SEK m 500 425 400 338 318 300 243 228 200 100 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 25 │ 2015-04-22 │ ytf
Slide 26: Cash flow
Cash flow Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2014 2014 2014 2014 2015 From operating activities 1) 2) -241 531 349 339 -273 From investing activities -7 -6 -1 -6 -2 From financing activities 5 -708 -156 -61 -73 Total cash flow for the quarter -243 -183 192 272 -348 Cash and cash equivalents e
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 40 percent (41) • Available liquidity was SEK 4,877m (4,942) of which cash and cash 1 000 1 equivalents SEK 2,077m (2,142) • Unutilized overdraft facilities and 0 0 credi
Slide 28: Net financial items
Net financial items January - March SEKm 2015 2014 Financial income 1 5 Revaluation/currency hedging 1) 0 2 Financial income 1 7 Interest expenses -12 -13 Revaluation/currency hedging 1) 0 -2 Interest expense pensions -8 -9 Financial expenses -20 -24 Net financial items -19 -17 1) Refers to claims o
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q1 2015 (Q4 2014) Cost-based effect SEK 212m (235) + Revaluation effect SEK 241m (424) + Sales effect SEK 58m (18) 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 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Group 289 303 271 424 241 Interna- Business segment Stockholm Sweden tional Total Q4 2014 306 60 58 424 Q1 2015 188 42 11 241 The net of positive and negative revaluation effects in residential projects during Q1 20
Slide 31: Revaluation effects and Revenue
Revaluation effects and Revenue JM Residential Stockholm SEKm 1 800 21% 1 500 18% 15% 1 200 12% 900 9% 600 6% 300 3% 0 0% Revalution effects Revenue Relation revalution effects/revenue per quarter % 31 │ 2015-04-22 │ ytf
Slide 32: JM today
JM today • Customer focused – strong brand • 29,700 building rights in attractive locations • Some uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet – focus on cash flow • Well balanced risk prof