Jm Ab · OMXSTO:JM
Jm Ab — Q1 2013 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Apr 25, 2013
Slide 1: Interim report January – March 2013
Interim report January – March 2013
Slide 2: JM Group
JM Group Revenue: SEK 12.2 billion 1) Total assets: SEK 11.8 billion No. of building rights: 27,800 No. of employees: 2,210 18 % 1% Market cap: SEK 11,8 billion 2) 76 % 80 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 148 per share 2 │ 2013-04-25 │ ytf
Slide 3: Group Summary – segment reporting
Group Summary January – March 2013 According to segment reporting • Revenue decreased to SEK m % 1 800 14 SEK 2,875m (3,188) 1 600 12 1 400 • Operating profit was 10 1 200 SEK 335m (337) 1 000 8 800 6 • Operating margin increased 600 4 to 11.7 percent (10.6) 400 2 200 • Gains from property sales 0 2
Slide 4: Group Summary – According to IFRIC
Group Summary January – March 2013 According to IFRIC 15 • Revenue decreased to SEK 2,698m (2,987) • Operating profit decreased to SEK 288m (329), limited number of completed projects in Norway • Profit before tax decreased to SEK 273m (316) • Earnings per share amounted to SEK 2.60 (2.70) • Return
Slide 5: Group Summary
Group Summary January – March 2013 • Number of residential units sold 709 (627) • Number of housing starts 574 (631) • Cash flow from operations decreased to SEK -309m (2), larger investments in development properties in Stockholm • Building rights portfolio 27,800 (27,200) 5 │ 2013-04-25 │ ytf
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - March Operating profit, SEK m 2013 2012 JM Residential Stockholm 247 244 JM Residential Sweden 54 59 JM International 24 32 JM Property Development 11 1 JM Production 12 14 Group-wide expenses -13 -13 Total as stated in segment reporting 335 337 Resta
Slide 7: Demand in Stockholm continues to improve
Demand in Stockholm continues to improve • Demand in Stockholm improved. Continued cautions demand in rest of Sweden – positive in Gothenburg. Continued good demand in Norway • Total sales and reservations in Stockholm better than any individual quarter in 2012 • Planning processes impose a limit on
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2009 – Q1 2013 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2009 2010 2011 2012 2013 Sthlm, Inner city Sthlm, Nearby suburbs Gothenburg Malmö Source: Mäklarstat
Slide 9: Residential units sales somewhat higher
Residential units sales somewhat higher No. of units 2 000 1 800 1 600 1,401 1,307 1 400 1 200 1,056 1 000 902 800 743 655 600 400 200 395 308 340 320 176 237 125 143 132 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2-Q4 9 │ 2013-
Slide 10: Housing starts on a lower level
Housing starts on a lower level No. of units 2 000 1 800 1,684 1 600 1,507 1 400 1 200 1,157 1 000 887 779 788 800 600 400 200 428 345 314 327 153 187 153 133 0 73 2011 2012 2013 2011 2012 2013 2011 2012 2013 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2 - Q4 10 │ 2013-04-25
Slide 11: Monoliten, Telefonplan Stockholm
Monoliten, Telefonplan Stockholm No. of residential units 220 Production starts Q1 2013 107 Completed 2015 11 │ 2013-04-25 │ ytf
Slide 12: Kastellgården Kungälv
Kastellgården Kungälv No. of residential units 124 Production starts Q1 2013 40 Completed 2014 12 │ 2013-04-25 │ ytf
Slide 13: Grefsen Oslo
Grefsen Oslo No. of residential units 500 Production starts Q1 2013 17 Completed 2015 13 │ 2013-04-25 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 80 70 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 Stockholm Sweden International Average value 14 │ 2013-04-25 │ ytf
Slide 15: 5,840 residential units in current production
1) 5,840 residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q1 2013 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% mar-09 sep-09 mar-10 sep-10 mar-11 sep-11 mar-12 sep-12 mar-13 JM Residential Stockholm JM Residen
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Mar 31 Mar 31 Dec 2013 2012 2012 Number of residential units 5 8401) 5 786 5 988 Number of residential units sold 3 244 3 246 3 258 Number of residential units reserved 777 503 667 Sold residential units (%) 57 56 55 Reserved residential units (%)
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - March Full Year SEK m 2013 2012 2012 Revenue 1,311 1,414 5,591 Operating profit 247 244 1,041 Operating margin (%) 18.8 17.3 18.6 Number of available building rights 11,200 11,500 10,900 Number of residential units in current production 2,777 3,059 3,071 • Demand c
Slide 18: JM Residential Sweden
JM Residential Sweden January - March Full Year SEK m 2013 2012 2012 Revenue 704 783 3,003 Operating profit 1) 54 59 231 Operating margin (%) 7.7 7.5 7.7 Number of available building rights 9,400 9,000 9,200 Number of residential units in current production 1,553 1,571 1,492 1) Of which property sal
Slide 19: JM International
JM International January - March Full Year SEK m 2013 2012 2012 Revenue 576 660 3,152 Operating profit 1) 24 32 181 Operating margin (%) 4.2 4.8 5.7 Number of available building rights 6,500 6,700 6,500 Number of residential units in current production 1,402 1,156 1,425 1) Of which property sales 2
Slide 20: JM Property Development
JM Property Development January - March Full Year SEK m 2013 2012 2012 Revenue 23 21 77 Operating profit 1) 11 1 -83 Number of available building rights 700 Number of residential units in current production 108 1) Of which -property sales 10 - 0 -impairment loss on project property - - -95 • Project
Slide 21: JM Production
JM Production January - March Full Year SEK m 2013 2012 2012 Revenue1) 371 455 2,006 Operating profit 12 14 71 Operating margin (%) 3.2 3.1 3.5 1) Of which internal 695 110 145 • Good demand • Solid orders • Decreasing revenue • Stable margin. 21 │ 2013-04-25 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 03/31/2013 03/31/2012 1) Stockholm 11,900 11,500 Malmö/Lund 4,400 4,000 Gothenburg 2) 1,900 2,100 Uppsala 3) 3,100 2,900 Norway 4,800 5,400 Copenhagen 700 700 Helsinki 600 100 Belgium 400 500 Total approximately 27,800 27,200 1) Of wh
Slide 23: Increased level of development properties
Increased level of development properties Building rights in Balance Sheet Jan-Mar SEK m 2010 2011 2012 2013 Opening balance 4,990 5,374 5,816 5,769 Plus 1,655 1,585 1,259 786 Minus -1,271 -1,143 -1,306 -331 Closing balance 5,374 5,816 5,769 6,224 23 │ 2013-04-25 │ ytf
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet No. building rights 1) In Balance Production 2) Average 3) 03/31/2013 Sheet starts period, years JM Residential Stockholm 8,200 1,476 5.6 JM Residential Sweden 5,700 813 7.0 JM International 4,300 817 5.3 Group 18,200 3,106 5.9 1) Residential building righ
Slide 25: 95 unsold residential units in the Balance Sheet SEK 327m
95 unsold residential units in the Balance Sheet SEK 327m SEK m 350 327 300 250 214 200 193 168 147 150 100 50 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 25 │ 2013-04-25 │ ytf
Slide 26: Cash flow Q1 2013
Cash flow Q1 2013 Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2012 2012 2012 2012 2013 From operating activities 1) 2) 2 -140 442 675 -309 From investing activities 0 -2 0 0 0 From financing activities 30 -560 -184 -225 -11 Total cash flow for the quarter 32 -702 258 450 -320 Cash and cash equivalents
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 38 percent (40) Available liquidity was SEK 4,953m 1 000 1 (5,269) of which cash and cash equivalents SEK 2,153m (2,469) 0 0 Unutilized overdraft facilities and credit line
Slide 28: Net financial items
Net financial items January – March 2013, SEK m Financial income 11 Financial income 7 Revaluation/currency hedging 1) 4 Financial expenses -26 Financial expenses -13 Revaluation/currency hedging 1) -4 Interest expense pensions -9 Net financial items -15 1) Refers to claims on JM International. 28 │
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q1 2013 (Q4 2012) Cost-based effect Revaluation effect Sales effect SEK 252m (328) + SEK 169m (213) + SEK 40m (51) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Group 258 256 221 213 169 Interna- Business segment Stockholm Sweden tional Total Q4 2012 129 67 17 213 Q1 2013 119 46 4 169 The net of positive and negative revaluation effects in residential projects during Q1 201
Slide 31: JM today
JM today • Customer focused – strong brand • 27,800 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 •