Jm Ab · OMXSTO:JM
Jm Ab — Investor Presentation (2000)
37 slides from Jm Ab's investor presentation, 2000
Slide 1: The JM Group
The JM Group 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 • Real estate portfolio supporting project development • Increased cash flow focus • Strong financial base • High quality profile and trade mark 2
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
Shareholders Percentange of capital (votes (votes) votes) 99-12-31 Skanska 26,5% (45,1%) Metall 2,8% (2,1%) Nordbanken 10,5% (7,8%) Folksam 2,3% (1,8%) Robur 7,2% (5,4%) Ratos 2,4% (1,8%) SEB 6,4% (4,7%) Wasa 1,7% (1,3%) AP 5,4% (4,1%) Foreign shareholders 3,9% (2,9%) Apoteksbolaget 4,3% (3,2%) Othe
Slide 6: JM-Share
JM-SHARE JM B-share Traded volume Afv Real Estate & Construction Index In 000's Afv General Index 250 225 3000 200 2500 175 2000 150 1500 1000 125 500 97 98 99 00 (c) SIX Findata 6
Slide 7: Comparative advantages of JM
Comparative advantages of JM • Project development - managing the full process • Targeting growth segments of the market • Strong project development competence • Large development property portfolio - attractive locations • Business oriented corporate culture • Quality and environmental focus • Str
Slide 8: JM Development concept - residencies
JM Development concept - residencies Acquisition Property Conceptual work management General planning Occupancy Project planning Construction Financing Sales 8
Slide 9: Market
Market • Favourable market in the Nordic countries for residential and commercial properties • The strongest demand in growing urban areas • “New” market for senior citizen residencies 9
Slide 10: JM - Market Strategy
JM - Market Strategy • Properties for comfortable living and work with emphasis on quality and environmental aspects • Organic growth in Sweden and Norway • Expansion in Denmark • Assessment of Finnish market • High turnover rate of fully developed properties • New markets within the business concep
Slide 11: Senior citizen residencies - Market
Senior citizen residencies - Market POPULATION FORECAST 2000 – 2030 (thousand) Year 2000 2005 2010 2015 2020 2025 2030 Age % 65 - 1 539 1 577 1 738 1 930 2 050 2 147 2 253 46 80 - 459 495 499 495 528 644 750 63 90 - 68 81 93 100 101 101 115 68 Total population 8 858 8 920 9 008 9 108 9 215 9 291 9 3
Slide 12: Senior citizen residencies - JM
Senior citizen residencies - JM • Annual production 300 - 500 MSEK • 15 - 20% margin in the projects • Long term renting agreements (10-20 years) • Realizing gains as projects are completed - not property management • Major urban areas and growing university cities 12
Slide 13: The JM Organization as of January 2000
THE JM ORGANIZATION AS OF JANUARY 1 2000 President CEO Finance Legal Affairs CFO Support units Human Communication Resource Business Support Business units Project Development Project Development Project Development Project Development Business Development Residential Commercial Sweden Foreign Manag
Slide 14: JM - Financial objectives
JM - Financial objectives • 15 % return on equity • 50 % dividend after tax • 30 % equity to assets ratio 14
Slide 15: Return on equity
Return on equity 14 % 12 10 8 6 Return on equity, 5 year average 4 5 year bond + 3,5 % risk 2 premium (5 year average) 0 1995 1996 1997 1998 1999 The equity is calculated as an average of the beginning and end of period balances 15
Slide 16: Dividend policy
Dividend policy Dividends shall, over time, reflect the earnings trend of the operations, and correspond to an average of 50 percent of Group earnings, after tax, during the course of a business cycle. 16
Slide 17: Number of started residencies in Sweden 1937-2000E
Number of started residencies in Sweden 1937-2000E 120 000 100 000 80 000 60 000 40 000 20 000 0 1937 1941 1945 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 Source: BE 17
Slide 18: Started residencies and population increase in Stockholm
Number of started residencies excl houses and the population increase in the area of Stockholm Population increase Started residencies 25000 20000 15000 10000 5000 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Source: BE 18
Slide 19: The JM Group
The JM Group IS IN POSSESSION OF BUILDING RIGHTS FOR 24 000 FUTURE RESIDENCIES ALL WITH IN MORE THAN ATTRACTIVE 250 PROJECTS LOCATIONS 19
Slide 20: Building rights for residencies - Sept 99
Building rights for residencies - Sept 99 9 000 STOCKHOLM 5 000 SWEDEN excl STOCKHOLM 1 000 PROJECT PROPERTIES 5 000 CONDITIONAL ACQUISITIONS IN SWEDEN 4 000 FOREIGN 24 000 RESIDENCIES 20
Slide 21: Building rights Stockholm - Sept 1999
Building rights Stockholm - Sept 1999 Building rights Book value Stockholm municipality 4.800 1.445 MSEK Stockholm other 4.700 383 MSEK Total 9.500 1.828 MSEK 21
Slide 22: The JM Group - Highlights 1999
The JM Group - Highlights 1999 • Increased volume and margin in construction operations • Establishment in Denmark • Acquisition of AS Prosjektfinans in Norway • Continuous sale of fully developed management properties • Investments in shares and convertibles by management and employees • New organi
Slide 23: Financial summary 1999
The JM Group Financial summary 1999 • Profit after financial items amounted to MSEK 634 (335). • Profit in construction operations rose by 78 per cent to MSEK 330 (185) and the profit margin improved to 6,5 (4,7) per cent. Net sales increased by 28 per cent to MSEK 5.085 (3.966). • The year´s proper
Slide 24: The JM Group - pre tax profit
The JM Group - pre tax profit Profit from sale of MSEK management properties 700 634 Profit before sale of 530 management properties 600 500 330 400 335 380 300 135 200 304 100 104 200 0 1997 1998 1999 24
Slide 25: Construction operations: profit and key ratios
Interim financial statement 1999 Profit and key ratios by business unit Construction operations MSEK 1999 1998 1997 Net sales 5 085 3 966 3 114 Cost of production -4 481 -3 532 -2 818 Gross profit 604 434 296 Selling and administrative expenses -274 -249 -202 Profit from Construction Operations 330
Slide 26: Current 12 months net sales Construction Operations
Current 12 months net sales Construction Operations NET SALES QUARTERLY (MSEK) 6000 3000 CURRENT 12 MONTHS 5085 4743 5000 (MSEK) 4441 3966 4122 3699 4000 3280 3419 2000 3114 1572 3000 1230 1289 1212 963 856 970 910 1012 2000 831 1000 690 630 1000 0 0 2 3 4 2 3 4 2 3 4 97 98 99 Q Q Q Q Q Q Q Q Q 19 1
Slide 27: Current 12 months profit Construction operations
Current 12 months profit Construction operations QUARTERLY PROFIT (MSEK) 350 330 8,0% CURRENT 12 MONTHS PROFIT (MSEK) 300 CURRENT 12 MONTHS 279 MARGIN (%) 237 6,5% 250 209 6,0% 185 200 5,9% 151 150 129 5,1% 5,3% 129 102 4,7% 94 4,0% 100 3,1% 3,8% 4,1% 78 84 69 3,0% 48 50 20 24 41 42 16 14 44 0 2,0%
Slide 28: Development Properties
Development Properties (book value) MSEK 3000 2.611 2500 2.020 2000 1500 813 1000 398 480 500 0 1995 1996 1997 1998 1999 28
Slide 29: Real estate operations: profit and key ratios
Interim financial statement 1999 Profit and key ratios by business unit Real estate operations MSEK 1999 1998 1997 Property Management Rental revenues 709 768 811 Interest subsidies 31 42 64 740 810 875 Operation and maintenance -161 -185 -186 Property tax -37 -43 -36 Depreciations -87 -97 -104 Gros
Slide 30: Real estate operations key ratios
Interim financial statement 1999 Profit and key ratios by business unit Real estate operations 1999 1998 1997 KEY RATIOS Vacancy rate (%) based on rentable area 3 6 7 based on revenues 2 4 4 Rentable area (1.000 m2) 640 833 878 Number of employees 77 87 83 30
Slide 31: Value of property portfolio
Value of property portfolio MSEK 10000 9000 8000 7000 Book value 6000 5000 Assessed market 4000 value 3000 2000 1000 0 1995 1996 1997 1998 1999 31
Slide 32: Sale of properties Real Estate Operations
Sale of properties Real Estate Operations MSEK 2000 1800 1600 1400 1200 1000 800 600 400 200 0 95 96 97 98 99 32
Slide 33: Profit from property sale - Management Properties
Interim financial statement 1999 Profit from property sale - Management Properties MSEK 400,0 380 350,0 330 297 300,0 250,0 Aver. Aver. 236 200,0 150,0 135 100,0 50,0 36 0,0 1995 1996 1997 1998 1999 33
Slide 34: Finance operations: profit and key ratios
Interim financial statement 1999 Profit and key ratios by business unit Finance operations MSEK 1999 1998 1997 Net financial items -356 -351 -400 Administrative costs -9 -7 -5 Profit of Finance Operations -365 -358 -405 KEY RATIO (end of period) 5 588 5 511 4 194 Interest bearing net amount of debt
Slide 35: The JM Group - balance sheet in summary
Interim financial statement 1999 The JM Group - balance sheet in summary MSEK 1999-12-31 1998-12-31 1997-12-31 Assets Management properties 6 855 7 117 6 660 Development properties 2 611 2 020 813 Other assets 1 584 1 335 1 133 Total assets 11 050 10 472 8 606 Equity and liabilities Shareholders equ
Slide 36: Loan Portfolio 1999-12-31
Loan Portfolio 1999-12-31 Interest Maturities MSEK % 2 497 8 2 500 6,1 6,0 5,9 5,9 2 000 5,3 6 4,6 1 500 1 235 1 049 4 1 000 510 2 500 352 371 0 0 PRI 2000 2001 2002 2003 2004> Loan amount Average interest in % 36
Slide 37: The JM Group - Equity / Assets ratio
The JM Group - Equity / Assets ratio % 30 25 20 15 30 30 27 24 25 10 5 0 1995 1996 1997 1998 1999 Jan - Sept 37