Jm Ab · OMXSTO:JM
Jm Ab — Q1 2002 Earnings Presentation
29 slides from Jm Ab's earnings presentation, April 2002
Slide 1: The JM Group Company Presentation
The JM Group Company Presentation April 2002
Slide 2: Business concept
Business concept To create attractive living and working environments that satisfy individual needs both today and in the future 2002-04-19 1
Slide 3: Group summary
Group summary • Market-leader – tenant-owned apartments • Major potential – building rights for 27,000 units – greater selectivity in acquisitions • Caution in commercial project development • A focus on cash flow – rapid balance sheet turnover • Customer-driven with a strong brand – quality and env
Slide 4: Financial and non-financial targets
Financial and non-financial targets Target 2001 2000 1999 Return on equity 5 yrs weighted (%) 15 19 14 13 Dividend share of profit after tax (%) 50 37 39 50 Equity/assets ratio (%) 30 30 31 28 Project development margin (%) 12,0 11,8 10,3 6,5 Building rights for production, number 4 500 2 900 3 000
Slide 5: Ownership structure
Ownership structure Share of capital per 31 of March 2002 SEB funds and Second Swedish National foundations 20.2 Pension Fund 3.7 Robur funds 6.2 AFA Insurance 3.3 AMF Pension 5.9 Alecta (former SPP) 3.2 Nordea funds 5.1 Third Swedish National Stefan Persson Pension Fund 2.5 Placering AB 4.0 Hagströ
Slide 6: JM – Share
JM – Share JM B Afv Building and No. of shares traded, Afv general index Construction-related index thousands 350 20000000 18000000 300 16000000 14000000 250 12000000 10000000 200 8000000 6000000 150 4000000 2000000 100 0 1997 1998 1999 2000 2001 2002 2002-04-19 5
Slide 7: Project development
Project development Acquisition Concept Management Planning Occupancy Pre-construction Construction Financing Sale/rental 2002-04-19 6
Slide 8: Standard JM project
Standard JM project Market research 30% Booking - Start of production Acquisition Pricing Moving in Approval Booking Concept Sale Planning Appeal Indiv. design Permit Living Pre-construction Construction Management Down Final payment payment Construction finance Borrowing/cash investment 1998 1999 2
Slide 9: Price development – tenant-owned apartments
Price development – tenant-owned apartments January – March 2002 Percentage change vs Jan - March 2001 12% Percentage change vs Oct - Dec 2001 10% 9% 8% 6% 5% 5% 4% 2% 2% 2% 2% 0% Sweden Stockholm City Greater Stockholm Source: Svensk Fastighetsförmedling 2002-04-19 8
Slide 10: Highlights of 2002
Highlights of 2002 • Continued successful project development with increased net sales • Stable demand and prices for newly produced housing • Continued selectivity in acquisition of building rights • Extensive sales of fully developed properties • Caution in the commercial project development 2002-
Slide 11: Group summary
Group summary January – March 2002 • Profit after financial items amounted to SEK 324m (454 ) • Return on equity over the past 12-month period amounted to 27 per cent • Earnings per share over the past 12-month period amounted to SEK 34 2002-04-19 10
Slide 12: Group summary
Group summary January – March 2001 • Profit in project development amounted to SEK 358m (159 ) and the margin over the past 12-month period amounted to 13.5 per cent • Net sales increased by 22 per cent to SEK 2 331m (1 906 ) • Property sales of SEK 902m (1 350 ) provided capital gains of SEK 174m (
Slide 13: Project development
Project development Net sales 3 000 8590 9 000 2441 8 000 2 500 6 605 2217 7 000 1971 1961 2 000 5 435 6 000 5 000 1 500 4 000 1 000 3 000 2 000 500 1 000 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 2001 2002 By quarter (MSEK) Rolling 12-month average 2002-04-19 12
Slide 14: Project development
Project development Profit 1200 1156 1100 16% 1000 900 14% 800 725 13,5% 12% 700 600 11,0% 10% 500 365 400 350 358 8% 300 252 196 200 6,7% 6% 100 0 4% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 2001 2002 By quarter (MSEK) Rolling 12-month average (MSEK) Rolling 12-month margin (%) 2002-04-19 13
Slide 15: Property sales
Property sales MSEK 4 500 4 000 3 500 928 3 000 2 500 2 000 535 1 500 380 330 1 000 174 500 135 0 1997 1998 1999 2000 2001 Jan-March 2002 Capital gains 2002-04-19 14
Slide 16: Net sales by business unit
Net sales by business unit January-March April-March Full Year MSEK 2002 2001 2001/02 2001 JM Residential - Stockholm 979 728 3 722 3 471 JM Residential - Rest of Sweden 473 450 1 966 1 943 JM Production 422 391 1 828 1 797 JM Commercial 114 153 477 516 JM International 352 264 1 573 1 485 Eliminati
Slide 17: Operating profit by business unit
Operating profit by business unit January-March April-March Full Year Mkr 2002 2001 2001/02 2001 JM Residential - Stockholm 119 102 561 544 JM Residential - Rest of Sweden 35 31 231 227 JM Production 14 10 100 96 JM Commercial 225 383 892 1 050 JM International 21 20 112 111 Group-wide costs -20 -12
Slide 18: Consolidated balance sheet
Consolidated balance sheet MSEK 31/ 03/ 2002 31/ 03/ 2001 31/ 12/ 2001 Assets Management properties 3 996 5 625 4 717 Development properties 3 964 3 347 4 048 Other assets 4 098 3 625 4 123 Total 12 058 12 597 12 888 Equity and liabilities Equity 4 048 4 094 3 823 Provisions and liabilities 8 010 8
Slide 19: Development properties
Development properties Book value MSEK 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1996 1997 1998 1999 2000 2001 2002 March 2002-04-19 18
Slide 20: Number of contracts signed and housing starts
Number of contracts signed and housing starts 1200 JM Group 3500 1000 3000 2500 800 2000 600 1500 400 1000 200 500 0 0 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Quarter Number of housing starts Number of residential units sold (contracts signed) Number of housing
Slide 21: Building rights portfolio
Building rights portfolio No of Building rights Stockholm 12 600 Gothenburg 3 000 Malmoe/Lund 2 800 Uppsala 1 900 Rest of Sweden 1 500 Oslo/Bergen 4 100 Copenhagen 900 Brussels 200 Total 27 000 2002-04-19 20
Slide 22: Lilla Essingen
Lilla Essingen Stockholm • No. of units: approx. 800 • Production period: 2000-2006 • Anticipated average price level: SEK 37,000/sq.m. (incl. VAT) • Acquisition price: MSEK 300 (SEK 4,000/sq.m.) 2002-04-19 21
Slide 23: Vallgossen
Vallgossen Stockholm • No. of units: 126 • Production period: 2000-2002 • Anticipated average price level: approx. SEK 43,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 42 (SEK 4,200/sq.m.) 2002-04-19 22
Slide 24: Liljeholmskajen
Liljeholmskajen Stockholm • No. of units: approx.. 2,500 • Production period: 2001-2007 • First phase 125 apartments started • Anticipated average price level: approx. SEK 33,000/ sq.m. (incl. VAT) • Acquisition price: MSEK 520 (SEK 2,500/sq.m.) 2002-04-19 23
Slide 25: Frösunda Torg
Frösunda Torg Stockholm Commercial space • Approx. 41,000 sq.m. of rentable space • Partly open-plan design • Office rents of around SEK 2,500-2,800/sq.m. • Sold 2002 2002-04-19 24
Slide 26: Kjørbokollen
Kjørbokollen Oslo • No of units: 330 • Production period: 2001 - 2005 • Anticipated average price: SEK 37,000/sq.m. (incl. VAT) • Acquisition price:MSEK 88 (SEK 4,200 sq.m.) • Partnership 50/50 2002-04-19 25
Slide 27: Island Brygge
Island Brygge Copenhagen • No of units: 500 • Production period: 2001- 2006 • Anticipated average price: approx. SEK 31,000 sq.m. (incl. VAT) • Acquisition price: MSEK 155 (SEK 2,600 sq.m.) 2002-04-19 26
Slide 28: Industrial construction
Industrial construction • A mobile steel hall which covers the entire building • Width: 24 metres • Height: 24 metres • Length: 54 metres (unlimited) • Two overhead pulleys in the roof which handles 8 tonnes (replaces the cranes) • Manages a six-floor building (nine floors when extended) • Assembly
Slide 29: Conclusions half way though the project
Conclusions half way though the project • Higher prefabrication level and lower packaging requirement • Shorter lead times (17 per cent higher productivity) • Five degrees warmer inside the hall – with no extra heating • Considerably faster drying out times • Lower costs for faults • Greater job sat