Jm Ab · OMXSTO:JM
Jm Ab — Q3 2014 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Oct 24, 2014
Slide 1: Interim report January – September 2014
Interim report January – September 2014 October 24, 2014
Slide 2: JM Group
JM Group Revenue: SEK 13.4 billion 1) Total assets: SEK 11.1 billion No. of building rights: 28,400 No. of employees: 2,187 1% 19 % Market Cap: SEK 17.7 billion 2) 78 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 1% 2) SEK 233 per share 2 │ 2014-02-12 │ ytf
Slide 3: Group Summary – segment reporting
Group Summary January – September 2014 According to segment reporting • Revenue increased to SEK m % SEK 9,729m (9,054) 1 800 18 1 600 16 • Operating profit increased to 1 400 14 1 200 12 SEK 1,171m (1,062) 1 000 10 • Operating margin amounted 800 8 600 6 to 12.0 percent (11.7) 400 4 200 2 • Gains f
Slide 4: Group Summary – IFRIC
Group Summary January – September 2014 According to IFRIC 15 • Revenue increased to SEK 9,530m (8,712) • Operating profit increased to SEK 1,201m (982) • Profit before tax increased to SEK 1,149m (935) • Earnings per share increased to SEK 11.30 (8.80) • Return on equity increased to 30.1 percent (2
Slide 5: Group Summary
Group Summary January – September 2014 • Number of residential units sold 2,277 (2,462) • Number of housing starts 2,277 (2,072) • Increased number of housing starts in Norway during the third quarter • Cash flow from operations was SEK 639m (-76), investments in development properties and decreased
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - September Operating profit, SEK m 2014 2013 JM Residential Stockholm 890 788 JM Residential Sweden 149 158 JM International 72 82 JM Property Development 40 21 JM Production 55 47 Group-wide expenses -35 -34 Total as stated in segment reporting 1,171
Slide 7: Good demand and higher level of housing starts
Good demand and higher level of housing starts • Demand in Stockholm continued to improve and demand in the rest of Sweden developed favorably. Demand in Norway recovered during the nine-month period • Demand in Stockholm strengthens the Group’s operating margin • The percentage of sold/reserved res
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q3 2005 – Q3 2014 SEK/sq.m. 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sthlm, Inner city Sthlm, Nearby subur
Slide 9: Somewhat lower level of sold residential units
Somewhat lower level of sold residential units Number of units 1 800 1,513 1 600 1,307 1 400 453 1 200 474 902 951 1 000 216 743 800 292 547 600 1160 294 1060 134 400 833 735 684 254 610 200 449 413 379 254 0 54 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm JM
Slide 10: Somewhat higher level of housing starts
Somewhat higher level of housing starts Number of units 1 800 1 600 1,507 1,404 1 400 344 1 200 426 1 000 877 861 779 800 243 250 404 600 1163 1128 488 978 400 212 618 676 529 473 473 200 200 276 200 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential Stockholm JM Residentia
Slide 11: Fullriggaren
Fullriggaren Österåker, Stockholm No. of residential units, approx. 300 Housing starts Q3 2014 47 Completed in 2016
Slide 12: Bellevue Park, Kviberg
Bellevue Park, Kviberg Gothenburg No. of residential units, approx. 500 Housing starts Q3 2014 72 Completed in 2016
Slide 13: Hovinbekken II
Hovinbekken II Oslo, Norway No. of residential units 196 Housing starts Q3 2014 74 Completed in 2016
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 110 100 90 80 70 73 60 58 50 40 43 30 24 20 10 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 Stockholm Sweden International Average value 14 │ 2014-02-12 │ ytf
Slide 15: 6,036 residential units in current production
6,036 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q3 2014 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2011 2012 2012 2013 2013 2014 2014 JM
Slide 16: Residential units in current production
Residential units in current production JM Group 30 sept 30 sept 31 dec 2014 2013 2013 Number of residential units 1) 6,036 5,689 5,609 Number of residential units sold 3,337 3,025 2,858 Number of residential units reserved 1,173 825 914 Sold residential units, % 57 56 54 Reserved residential units,
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - September Full-year SEK m 2014 2013 2013 Revenue 3,944 3,779 5,254 Operating profit 1) 890 788 1,167 Operating margin, % 22.6 20.9 22.2 Number of available building rights 11,000 11,000 11,200 Number of residential units in current production 3,030 2,475 2,516 1) O
Slide 18: JM Residential Sweden
JM Residential Sweden January - September Full-year SEK m 2014 2013 2013 Revenue 1,965 2,080 2,860 Operating profit 1) 149 158 221 Operating margin, % 7.6 7.6 7.7 Number of available building rights 8,800 9,000 8,700 Number of residential units in current production 1,606 1,619 1,460 1) Of which pro
Slide 19: JM International
JM International January - September Full-year SEK m 2014 2013 2013 Revenue 2,111 1,944 2,745 Operating profit 1) 72 82 126 Operating margin, % 3.4 4.2 4.6 Number of available building rights 7,600 7,100 7,100 Number of residential units in current production 1,200 1,287 1,325 1) Of which property s
Slide 20: JM Property Development
JM Property Development January - September Full-year SEK m 2014 2013 2013 Revenue 323 250 314 Operating profit 1) 40 21 37 Number of available building rights 1,000 600 700 Number of residential units in current production 200 308 308 1) Of which property sales 10 11 13 • Senior housing project wit
Slide 21: JM Production
JM Production January - September Full-year SEK m 2014 2013 2013 Revenue 1) 1,616 1,357 2,011 Operating profit 55 47 73 Operating margin, % 3.4 3.5 3.6 1) Of which internal 230 356 532 • Good demand • Solid orders • Increased revenue • Stable margin 21 │ 2014-02-12 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 09/30/2014 09/30/2013 1) Stockholm 12,000 11,600 1) Malmö/Lund 3,700 3,800 Gothenburg 2) 2,100 2,000 Uppsala 3) 3,000 3,200 Norway 5,800 5,300 Copenhagen 700 700 Helsinki 900 700 Belgium 200 400 Total approximately 28,400 27,700 1) Of
Slide 23: Unchanged level of development properties
Unchanged level of development properties Building rights in Balance Sheet Jan-Sep SEK m 2011 2012 2013 2014 Opening balance 5,374 5,816 5,769 5,988 Plus 1,585 1,259 1,274 878 Minus -1,143 -1,306 -1,055 -824 Closing balance 5,816 5,769 5,988 6,042 23 │ 2014-02-12 │ ytf
Slide 24: Approx. 5 years production in Balance Sheet
Approx. 5 years production in Balance Sheet No. of building rights 1) In Balance Housing 2) Average 3) 09/30/2014 Sheet starts period, years JM Residential Stockholm 7,400 1,554 4.8 JM Residential Sweden 5,000 919 5.4 JM International 4,500 685 6.6 JM Property Development 100 - - Group 17,000 3,158
Slide 25: 58 unsold residential units in the Balance Sheet, SEK 228m
58 unsold residential units in the Balance Sheet, SEK 228m SEK m 500 425 401 400 325 338 300 228 200 100 0 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 25 │ 2014-02-12 │ ytf
Slide 26: Cash flow
Cash flow Q3 Q4 Q1 Q2 Q3 Cash flow statement, SEK m 2013 2013 2014 2014 2014 From operating activities 1) 2) 111 974 -241 531 349 From investing activities -1 0 -7 -6 -1 From financing activities -116 -189 5 -708 -156 Total cash flow for the quarter -6 785 -243 -183 192 Cash and cash equivalents end
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 40 percent (36) • Available liquidity was SEK 4,955m (4,400) of which cash and cash 1 000 1 equivalents SEK 2,155m (1,600) • Unutilized overdraft facilities and 0 0 credi
Slide 28: Net financial items
Net financial items January – September 2014, SEK m Financial income 22 Financial income 15 Revaluation/currency hedging 1) 7 Financial expenses -74 Interest expenses -39 Revaluation/currency hedging 1) -7 Interest expense pensions -28 Net financial items -52 1) Refers to claims on JM International
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q3 2014 (Q2 2014) Cost-based effect SEK 199m (212) + Revaluation effect SEK 271m (303) + Sales effect SEK 15m (20) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Group 176 291 289 303 271 Interna- Business segment Stockholm Sweden tional Total Q2 2014 237 42 24 303 Q3 2014 228 29 14 271 The net of positive and negative revaluation effects in residential projects during Q3 20
Slide 31: JM today
JM today • Customer focused – strong brand • 28,400 building rights in attractive locations • Some uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet – focus on cash flow • Well balanced risk prof