Jm Ab · OMXSTO:JM
Jm Ab — H1 2004 Earnings Presentation
18 slides from Jm Ab's earnings presentation, September 2004
Slide 1: JM Group Interim Report January - June 2004
JM Group Interim Report January - June 2004
Slide 2: Group summary
Group summary January – June 2004 • Net sales increased by 5% to SEK 4,058m (3,856) • Profit after financial items amounted to SEK 165m (332) • Property sales of SEK 693m (2,101) provided capital gains of SEK 86m (399) 2004-09-07 19 aug_ytf 1
Slide 3: Group summary
Group summary January – June 2004 • Number of sold residential units increased to 2,393 (1,275) • Housing starts more than doubled to 1,842 (886) • Earnings per share for the period amounted to SEK 4 (8) • Return on equity for the past 12-month period amounted to 2% (5) 2004-09-07 19 aug_ytf 2
Slide 4: Significant events 2004
Significant events 2004 Good market – broader product range • Good demand in all JM’s housing markets • Very good sales trend for residential units in the form of signed contracts • Broader product range – wider potential customer base 2004-09-07 19 aug_ytf 3
Slide 5: Key measures 2004
Key measures 2004 Continued streamlining and new business • Continued priority for efficiency enhancement and reduced costs. Structured pre-construction and purchasing control • Reduced balance sheet and equity ratio raised to 39% (35) • Sales to tenant-owner co- operatives of SEK 238m • Adding valu
Slide 6: Ownership structure
Ownership structure Per cent of share capital at 31 July 2004 Robur funds 10.4 SEB funds and foundations 6.5 Alecta 6.0 AFA Insurance 5.0 Stefan Persson Placering AB 4.3 Fourth Swedish National Pension Fund 2.7 SHB funds 2.2 Enter 2.1 Eikos 2.1 Länsförsäkringar 2.0 Foreign shareholders 34.3 Others 2
Slide 7: Continued good demand throughout Sweden
Continued good demand throughout Sweden Tenant-owned apartment prices in cities, second-hand market 1997- Q2 2004 SEK/sq.m. 35000 30000 25000 20000 15000 10000 5000 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 1997 1998 1999 2000 2001 2002 2003 2004 Sthlm, Inner city Sthlm, Inner suburbs Gothenbur
Slide 8: Record for sold homes
Record for sold homes Group Number 4 000 3 500 3 189 3 000 2 511 2 255 2 500 2 000 1 500 2 393 1 000 1256 1251 1275 500 0 2001 2002 2003 Jan-June 2004 Q2 2004-09-07 19 aug_ytf 7
Slide 9: Increased level of production starts
Increased level of production starts Group Number 3 500 2 900 3 000 2 711 2 714 2 500 2 000 1 500 1 000 1 842 1 500 1 250 500 886 0 2001 2002 2003 Jan-June 2004 Q2 2004-09-07 19 aug_ytf 8
Slide 10: Improvement for residential business
Improvement for residential business January-June April-June July-June Full Year SEKm 2004 2003 2004 2003 2003/04 2003 JM Residential Stockholm 50 -12 37 -15 40 -22 JM Residential Sweden 70 47 41 29 121 98 JM International 43 51 24 38 64 72 JM Property Development 105 386 37 11 77 358 JM Production
Slide 11: Less capital tied up in building rights portfolio
Less capital tied up in building rights portfolio Development properties Jan-June SEKm 2001 2002 2003 2004 Opening balance 3,105 4,048 3,871 3,631 Plus 1,823 629 664 34 Minus -880 -806 * ) -904 -390 Closing balance 4,048 3,871 3,631 3,275 * ) of which write-down SEK 211m 2004-09-07 19 aug_ytf 10
Slide 12: Fewer unsold residential units in the balance sheet
Fewer unsold residential units in the balance sheet SEKm 800 700 600 500 400 300 200 100 0 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 2004-09-07 19 aug_ytf 11
Slide 13: Strong cash flow Q2 2004
Strong cash flow Q2 2004 Group Q1 Q2 Q3 Q4 Q1 Q2 Cash flow statement, SEKm 2003 2003 2003 2003 2004 2004 From operating activities*) *) 819 223 -1 068 1 530 -191 1 062 From investing activities -5 -13 8 -24 -1 -5 From financing activities -1,200 128 654 -1 316 -27 -694 Total cash flow for the period
Slide 14: Consolidated balance sheet
Consolidated balance sheet SEKm 30/06/2004 30/06/2003 31/12/2003 Assets Project properties 2,416 1,989 2,833 Development properties 3,275 3,635 3,631 Other assets 2,669 3,993 2,681 Total 8,360 9,617 9,145 Shareholders’ equity and liabilities Shareholders’ equity 3,264 3,343 Other liabilities 5,096 6
Slide 15: Interest-bearing net debt and debt/equity ratio decreasing
Interest-bearing net debt and debt/equity ratio decreasing SEKm times 6000 6 5000 5 4000 4 3000 3 2000 2 1000 1 0 0 1999 2000 2001 2002 2003 Jan-June 2004 Interest-bearing net debt Debt/equity ratio 2004-09-07 19 aug_ytf 14
Slide 16: Project properties for project development
Project properties for project development Book value Space Occupancy rate 30/06/2004 SEKm sq.m. annual rent, % Residential (tenancy rights) 1,221 144,566 99 Commercial properties under development 639 53,339 48 Fully developed commercial properties 556 57,437 86 Total project properties 2,416 255,3
Slide 17: Strategic development
Strategic development • Increased customer and market orientation • Broader range of quality homes in attractive locations – type of homes and price bands • Growth markets in Nordic region • Optimised building rights portfolio for residential units – development properties for maximum four years’ pr
Slide 18: JM 2004 and beyond
JM 2004 and beyond • Customer focused – strong brand • Market leader – tenant-owned units • 22,500 residential building rights in attractive locations • Limited commercial project development • Focus on cash flow – from project to Group • Industrialised process and attractive housing • Housing start