JM AB · OMXSTO:JM
JM AB — FY2014 Earnings Presentation
32 slides from JM AB's earnings presentation, Feb 11, 2015
Slide 1: Year-end Report 2014
Year- end Report 2014 February 11, 2015
Slide 2: JM Group
JM Group Revenue: SEK 14.2 billion 1) Total assets: SEK 12.4 billion No. of building rights: 29,400 No. of employees: 2,197 1% 18 % Market Cap: SEK xx billion 1) 79 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 1% 1) SEK xx per share 2 │ 2014-02-12 │ ytf
Slide 3: Group Summary – According to segment reporting
Group Summary January – December 2014 According to segment reporting • Revenue increased to SEK m % SEK 13,869m (12,652) 2 000 18 1 800 16 1 600 • Operating profit increased to 1 400 14 12 SEK 1,716m (1,576) 1 200 10 1 000 • Operating margin amounted 8 800 6 to 12.4 percent (12.5) 600 4 400 200 2 •
Slide 4: Group Summary – According to IFRIC
Group Summary January – December 2014 According to IFRIC 15 • Revenue increased to SEK 14,216m (12,603) • Operating profit increased to SEK 1,819m (1 523) • Profit before tax increased to SEK 1,744m (1,464) • Earnings per share increased to SEK 17.00 (14.10) • Return on equity increased to 28.7 perc
Slide 5: Group Summary
Group Summary January – December 2014 • Number of residential units sold 3,195 (3,265) • Number of housing starts 3,445 (2,953) • Increased number of housing starts in Sweden and Norway during the year • Cash flow from operations was SEK 978m (898), decreased holdings of unsold residential units • B
Slide 6: Operating profit according to IFRIC
Operating profit according to IFRIC 15 January - December Operating profit, SEK m 2014 2013 JM Residential Stockholm 1,278 1,167 JM Residential Sweden 216 221 JM International 135 126 JM Property Development 51 37 JM Production 81 73 Group-wide expenses -45 -48 Total as stated in segment reporting 1
Slide 7: Good demand and higher level in housing starts
Good demand and higher level in housing starts • Demand in Stockholm continued to improve during the year. Also the demand in the rest of Sweden and in Norway developed favorably • Good demand and sales in Stockholm strengthened the Group’s operating margin • The percentage of sold/reserved resident
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q4 2005 – Q4 2014 SEK/sq.m. 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sthlm, Inner city Sthlm, Nearby subur
Slide 9: Unchanged level of sold residential units
Unchanged level of sold residential units Number of units 1 800 1,513 1,553 1 600 1,307 1 400 393 453 1 200 474 951 981 1 000 902 216 297 743 800 292 607 547 600 1160 294 1060 228 134 400 833 735 684 254 610 200 449 413 379 54 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Resident
Slide 10: Higher level of housing starts
Higher level of housing starts Number of units 1 800 1 600 1,507 1,505 1,404 1 400 344 377 1 200 426 1,003 1 000 877 861 779 327 800 243 653 250 404 600 1163 1128 488 180 978 400 212 618 676 284 529 473 473 200 200 276 200 0 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 JM Residential
Slide 11: Trekantens Terrass, Gröndal
Trekantens Terrass, Gröndal Stockholm No. of residential units 67 Housing starts Q4 2014 67 Completed in 2016
Slide 12: Flaggskeppet, Kajen
Flaggskeppet, Kajen Gothenburg No. of residential units 406 Housing starts Q4 2014 71 Completed in 2016
Slide 13: Årvolltoppen
Årvolltoppen Oslo No. of residential units 91 Housing starts Q4 2014 50 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 63 60 55 50 48 40 30 26 20 10 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 Stockholm Sweden International Average value 14 │ 2014-02-12 │ ytf
Slide 15: 6,375 residential units in current production
6,375 1) residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q4 2014 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2012 2012 2013 2013 2014 2014 JM Resi
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Dec 31 Dec 2014 2013 Number of residential units 1) 6,375 5,609 Number of residential units sold 3,387 2,858 Number of residential units reserved 1,249 914 Sold residential units, % 57 54 Reserved residential units, % 21 17 Sold/reserved residentia
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - December SEK m 2014 2013 Revenue 5,692 5,254 Operating profit 1) 1,278 1,167 Operating margin, % 22.5 22.2 Number of available building rights 11,900 11,200 Number of residential units in current production 3,293 2,516 1) Of which property sales 10 - • Demand conti
Slide 18: JM Residential Sweden
JM Residential Sweden January - December SEK m 2014 2013 Revenue 2,764 2,860 Operating profit 1) 216 221 Operating margin, % 7.8 7.7 Number of available building rights 9,400 8,700 Number of residential units in current production 1,528 1,460 1) Of which property sales 0 9 • Demand developed favorab
Slide 19: JM International
JM International January - December SEK m 2014 2013 Revenue 2,942 2,745 Operating profit 1) 135 126 Operating margin, % 4.6 4.6 Number of available building rights 7,500 7,100 Number of residential units in current production 1,124 1,325 1) Of which property sales 3 2 • Demand in Norway recovered du
Slide 20: JM Property Development
JM Property Development January - December SEK m 2014 2013 Revenue 401 314 Operating profit 1) 51 37 Number of available building rights 600 700 Number of residential units in current production 430 308 1) Of which property sales 12 13 • Project with 97 rental units in the Dalénum area, Lidingö was
Slide 21: JM Production
JM Production January - December SEK m 2014 2013 Revenue 1) 2,456 2,011 Operating profit 81 73 Operating margin, % 3.3 3.6 1) Of which internal 386 532 • Good demand • Solid orders • Increased revenue • Somewhat lower margin 21 │ 2014-02-12 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 12/31/2014 12/31/2013 1) Stockholm 12,500 11,900 1) Malmö/Lund 3,800 3,700 Gothenburg 2) 2,400 1,900 Uppsala 3) 3,200 3,100 Norway 5,600 5,300 Copenhagen 700 700 Helsinki 1,000 800 Belgium 200 300 Total approximately 29,400 27,700 1)
Slide 23: Increased level of development properties
Increased level of development properties Building rights in Balance Sheet SEK m 2011 2012 2013 2014 Opening balance 5,374 5,816 5,769 5,988 Plus 1,585 1,259 1,274 2,273 Minus -1,143 -1,306 -1,055 -1,459 Closing balance 5,816 5,769 5,988 6,802 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 2) 12/31/2014 Sheet starts period, years JM Residential Stockholm 7,800 1,505 5.2 JM Residential Sweden 5,300 1,003 5.3 JM International 4,300 653 6.6 JM Property Development 100 284 0.4 Group 17,500
Slide 25: Valuation development properties
Valuation development properties 12/31/2014 Market Carrying Surplus SEK billion value amount value JM Residential Stockholm 5.6 4.0 1.6 JM Residential Sweden 1.8 1.2 0.6 JM International 2.2 1.6 0.6 Total 9.6 6.8 2.8 25 │ 2014-02-12 │ ytf
Slide 26: 62 unsold residential units in the Balance Sheet, SEK 243m
62 unsold residential units in the Balance Sheet, SEK 243m SEK m 500 425 400 325 338 300 243 228 200 100 0 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 26 │ 2014-02-12 │ ytf
Slide 27: Cash flow
Cash flow Q4 Q1 Q2 Q3 Q4 Cash flow statement, SEK m 2013 2014 2014 2014 2014 From operating activities 1) 2) 974 -241 531 349 339 From investing activities 0 -7 -6 -1 -6 From financing activities -189 5 -708 -156 -61 Total cash flow for the quarter 785 -243 -183 192 272 Cash and cash equivalents end
Slide 28: Strong financial position and liquidity
Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times 2 000 2 • Equity/Assets ratio 37 percent (40) • Available liquidity was SEK 5,224m (5,185) of which cash and cash 1 000 1 equivalents SEK 2,424m (2,385) • Unutilized overdraft facilities and 0 0 credi
Slide 29: Net financial items
Net financial items January – December 2014, SEK m Financial income 27 Financial income 18 Revaluation/currency hedging 1) 9 Financial expenses -102 Interest expenses -55 Revaluation/currency hedging 1) -9 Interest expense pensions -38 Net financial items -75 1) Refers to claims on JM International
Slide 30: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q4 2014 (Q3 2014) Cost-based effect SEK 235 m (199) + Revaluation effect SEK 424 m (271) + Sales effect SEK 18 m (15) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about
Slide 31: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Group 291 289 303 271 424 Interna- Business segment Stockholm Sweden tional Total Q3 2014 228 29 14 271 Q4 2014 306 60 58 424 The net of positive and negative revaluation effects in residential projects during Q4 20
Slide 32: JM today
JM today • Customer focused – strong brand • 29,400 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