Jm Ab · OMXSTO:JM
Jm Ab — Q1 2010 Earnings Presentation
26 slides from Jm Ab's earnings presentation, Apr 29, 2010
Slide 1: Interim Report January – March 2010
Interim Report January – March 2010
Slide 2: JM Group
JM Group Income: SEK 8.4 billion 1) Total assets: SEK 10.1 billion No. of building rights: 27,600 15 % No. of employees: 1,868 83 % Market cap: SEK 10.6 billion Finland Norway Sweden 1% 1% Denmark Belgium 1) 12-month period 2010-04-29 2
Slide 3: Group Summary
Group Summary January – March 2010 • Revenues decreased to SEK 1,708m 1) (2,902) • Profit before tax increased to SEK 93m (70), of which restatement according to IFRIC 15 SEK -29m (4) • The severe winter has had a negative impact on the level of activity and profit. 1) Revenues fell SEK 1,194m, comp
Slide 4: Group Summary
Group Summary January – March 2010 • Number of residential units sold 757 (564) • Number of housing starts 749 (147) • Earnings per share was SEK 0.80 (0.60) • Return on equity was 10.8 percent (14.3) • Cash flow from operations totaled SEK -88m (-464). 2010-04-29 4
Slide 5: Focus on Segment reporting
Focus on Segment reporting January - March Operating profit, SEK m 2010 2009 JM Residential Stockholm 112 120 JM Residential Sweden 34 12 JM International 1 -69 JM Property Development 1 24 JM Production 14 22 Group-wide expenses -11 -13 Restatement JM International 1) -29 4 Total 122 100 1) Effect
Slide 6: Good demand and sales in Sweden and Norway
Good demand and sales in Sweden and Norway • Good demand in Sweden and Norway – stabilization in Denmark • Continued good home sales in form of signed contracts in Sweden and Norway during the first quarter • The percentage of sold/reserved residential units in relation to ongoing production - above
Slide 7: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 1997 – Q1 2010 SEK/sq.m. 60000 50000 40000 30000 20000 10000 0 10 97 98 99 00 01 02 03 04 05 06 08 07 09 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Slide 8: Good home sales figures
Good home sales figures No. of units sold 2 200 2 000 1 800 1,713 1 600 1 400 1 200 1,061 973 1 000 800 605 564 600 400 246 200 392 285 358 169 212 225 174 0 59 67 2008 2009 2010 2008 2009 2010 2008 2009 2010 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2-Q4 2010-04-29 8
Slide 9: Improved level of housing starts
Improved level of housing starts No. of housing starts 2 200 2 000 1 800 1 600 1 400 1 200 1,102 973 1 000 800 689 597 600 400 259 359 200 332 364 221 164 91 111 46 61 0 10 2008 2009 2010 2008 2009 2010 2008 2009 2010 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2-Q4 2010-04-2
Slide 10: 4,392 residential units in ongoing production
4,392 residential units in ongoing production High percentage of sold and reserved Number implicates low risk in ongoing production in Q1 2010 3 500 100% 3 000 80% 2 500 2 000 60% 1 500 40% 1 000 20% 500 0 0% dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- 06 07 07 07 07 08 08
Slide 11: Residential units in ongoing production
Residential units in ongoing production JM Group 31 Mar 31 Mar 31 Dec 2010 2009 2009 Number of residential units 4,392 3,994 3,744 Number of residential units sold 2,635 1,649 2,026 Number of residential units reserved 1,023 585 922 Percentage sold residential units 60 41 54 Percentage reserved resi
Slide 12: JM Residential Stockholm
JM Residential Stockholm January - March Full year SEK m 2010 2009 2009 Income 756 891 3,330 Operating profit 112 120 496 Operating margin (%) 14.8 13.5 14.9 Number of available 10,700 11,800 10,700 building rights • Good demand and sales • Decreased income • Somewhat decreased margin • Balanced cas
Slide 13: JM Residential Sweden
JM Residential Sweden January - March Full Year SEK m 2010 2009 2009 Income 541 572 2,296 Operating profit 34 12 166 Operating margin (%) 6.3 2.1 7.2 Number of available 10,100 11,000 10,200 building rights • Good demand and sales • Decreased income • Increased margin • Strong cash flow. 2010-04-29
Slide 14: JM International
JM International January - March Full Year SEK m 2010 2009 2009 Income 336 264 1,353 Operating profit 1 -69 -192 Operating margin (%) 0.3 -26.1 -14.2 Number of available 6,800 7,800 7,000 building rights • Improved demand and sales in Norway • Stabilization of demand in Denmark • Stabilized estimate
Slide 15: JM Property Development
JM Property Development January - March Full Year SEK m 2010 2009 2009 Income 26 73 309 Operating profit 1 24 110 • Gains on property sales SEK 7m (13) • Project development of commercial properties ongoing in the Dalénum area on Lidingö – 87 % occupancy rate. 2010-04-29 15
Slide 16: JM Production
JM Production January - March Full Year SEK m 2010 2009 2009 Income 1) 349 503 2,008 Operating profit 14 22 130 Operating margin (%) 4.0 4.4 6.5 1) Of which internal 95 184 518 • Demand declined during the fourth quarter • Continued intense competition • Stable margin. 2010-04-29 16
Slide 17: Available building rights portfolio
Available building rights portfolio No. of building rights Region 2010-03-31 2009-03-31 Stockholm 10,700 11,800 Malmö/Lund 3,600 3,700 Gothenburg 1) 2,600 3,200 Uppsala 2) 3,900 4,100 Norway 4,800 5,600 Copenhagen 900 900 Helsinki 100 300 Belgium 1,000 1,000 Total approximately 27,600 30,600 1) West
Slide 18: Level of development properties unchanged
Level of development properties unchanged Building rights in Balance Sheet Jan-Mar SEK m 2007 2008 2009 2010 Opening balance 4,348 5,282 5,620 4,990 Plus 2,130 1,571 428 249 1) 2) Minus -1,196 -1,233 -1,058 -246 Closing balance 5,282 5,620 4,990 4,993 1) Including write-down of SEK 320m 2) Including
Slide 19: Approx. 7 years production in Balance Sheet
Approx. 7 years production in Balance Sheet Increasing production rate – more balanced building rights portfolio 1) No. building rights In Balance Production Average 2) 3) 2010-03-31 Sheet starts period, years JM Residential Stockholm 7,600 1,375 5.5 JM Residential Sweden 6,500 864 7.5 JM Internatio
Slide 20: 107 unsold residential units in the Balance Sheet – SEK 301m
107 unsold residential units in the Balance Sheet – SEK 301m SEK m 450 416 400 1) 353 1) 350 2) 307 301 290 300 250 200 150 100 50 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 1) Of which, Egholm, Denmark SEK 185m 2) Of which, Egholm, Denmark SEK 132m 2010-04-29 20
Slide 21: Cash flow Q1 2010
Cash flow Q1 2010 Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2009 2009 2009 2009 2010 1) 2) Cash flow from operating activities -464 629 179 780 -88 Cash flow from investment activities 4 -45 -3 -7 0 Cash flow from financing activities 203 -147 -386 172 249 Total cash flow for the quarter -257 437 -2
Slide 22: Good financial position and liquidity
Good financial position and liquidity Net interest-bearing liability/receivable SEK m times 3 000 3 • Equity/Assets ratio is 36 percent, netting of deferred payments implies 2 000 2 40 percent • Available liquidity was SEK 4,990m 1 000 1 (3,658) of which cash and cash equivalents SEK 2,190m (858) 0
Slide 23: Net financial items
Net financial items January – March 2010, SEK m Financial income 3 Financial expenses -32 Interest expenses -25 Interest expense pensions -7 Net financial items -29 2010-04-29 23
Slide 24: Components of profit/loss
Components of profit/loss Percentage of completion method (gross) Q1 2010 (Q4 2009) Cost-based effect Revaluation effect Sales effect SEK 107m (165) + SEK 134m (129) + SEK 43m (69) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about forecast Change in th
Slide 25: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Group 47 24 57 129 134 Interna- Business segments Stockholm Sweden tional Total Q4 2009 69 55 5 129 Q1 2010 67 46 21 134 The net of positive and negative revaluation effects in residential projects during Q1 2010 to
Slide 26: JM today
JM today • Customer-focused – strong brand • 27,600 residential building rights in attractive locations – high quality and good distribution • Week economy offset by low interest levels – fundamentally favorable prospects in the long term • Industrialized process and attractive homes • Strong balanc