Jm Ab · OMXSTO:JM
Jm Ab — Investor Presentation (April 2001)
40 slides from Jm Ab's investor presentation, April 2001
Slide 1: The JM Group Company Presentation
The JM Group Company Presentation 2000 April 2001
Slide 2: Business concept
Business concept To create attractive living and working environments that satisfy individual needs both today and in the future 1
Slide 3: Group summary
Group summary • Market-leader – tenant-owned residential units • Major project potential – 27 000 building rights • Selective project development – commercial space • Strong focus on cash flow • Rapid value added process and asset turnover • Customer-driven with a strong brand – quality and environm
Slide 4: Financial and non-financial targets
Financial and non-financial targets Target 2000 1999 1998 Return on equity 5 yrs weighted (%) 15 14 13 12 Dividend share of profit after tax (%) 50 39 50 45 Equity/assets ratio (%) 30 33 28 27 Project development- margin (%) 12,0 10,3 6,5 4,7 Building rights for production, number 4 500 3 000 2 300
Slide 5: Ownership Structure
Ownership Structure Share of capital per 16 February 2001 SEB funds and Alecta (former SPP) 2.2 foundations 14.9 Swedish Metalworkers’ Nordea funds and Union 2.0 foundations 9.8 Foreign Swedbank funds 6.0 Shareholders 22.0 AMF Pension 5.2 Others 27.2 Stefan Persson Placering AB 3.6 Number of Skandia
Slide 6: The JM Share
The JM Share JM B Afv Building and No. of shares traded, Afv general index Construction-related index thousands 5
Slide 7: Increasing shareholder return
Increasing shareholder return SEK % 10 5 8 4 6 3 4 2 2 1 0 0 1996 1997 1998 1999 2000 proposal Dividend per share Dividend yield 6
Slide 8: Project development
Project development Acquisition Concept Management Planning Occupancy Pre-construction Construction Financing Sale/rental 7
Slide 9: Organisation
Organisation President & CEO Group staffs Legal Affairs/ Development Finance/Treasury Corporate Communications Human Resources Business support Business units Stockholm Stockholm Business Residential Sweden Commercial Development International Real Estate 8
Slide 10: Housing production in Stockholm
Housing production in Stockholm Number 25 000 20 000 15 000 10 000 5 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001E Population growth Fully developed residential units 9
Slide 11: Price trend for tenant-owned apartments
Price trend for tenant-owned apartments SEK/sq.m. 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Östermalm Vasastan/ Södermalm Southern Western Northern Kungsholmen suburbs suburbs suburbs Source: Newsec 1996 1997 1998 1999 2000 10
Slide 12: Market rents in Stockholm
Market rents in Stockholm Commercial properties SEK/sq.m. 5 500 5 000 * * 4 500 4 000 * * * 3 500 * * 3 000 2 500 * * * Golden * 2 000 Triangle * * * City * * 1 500 1 000 center Rest of Attractive 500 inner-city Peripheral areas 0 = 1997 = 1998 = 1999 = 2000 * = peak rent Source: Newsec 11
Slide 13: Rents for commercial space in prime locations
Rents for commercial space in prime locations SEK/sq.m. 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1985 1987 1989 1991 1993 1995 1997 1999 Källa: Newsec Stockholm Gothenburg Malmö 12
Slide 14: Correlation between total return on downtown properties and GDP growth
Correlation between total return on downtown properties and GDP growth Total return (%) GDP (%) 50 5 40 4 30 3 20 2 10 1 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 0 -10 -1 -20 -30 -2 -40 Total return GDP -3 Source: Newse
Slide 15: Key events in 2000
Key events in 2000 • Sharp increase in housing starts – 3 000 residential units • Fully developed properties sold for SEK 2.2 billion • Major building rights acquisitions in Stockholm, Gothenburg and Malmö • Growth targets • Skanska divests all shares in JM • Dramatic increase in foreign ownership 1
Slide 16: Group summary – 2000
Group summary – 2000 • Profit after financial items was MSEK 1 209 (634) • Earnings per share amounted to SEK 25 (13) • Return on equity of 24 (15) per cent • Proposed dividend of SEK 10 (6.75) • Buy-back of up to 10 per cent of the company’s own shares 15
Slide 17: Group summary – 2000
Group summary – 2000 • Profit in project development rose 92 per cent to MSEK 637 (332) and the margin improved to 10.3 (6.5) per cent • Net sales increased by 18 per cent to MSEK 6 849 (5 825) • Property sales of SEK 2.2 (1.7) billion provided capital gains of MSEK 535 (330) 16
Slide 18: The Group's pre-tax profit for 2000
The Group’s pre-tax profit for 2000 MSEK 1 400 1 200 1 000 535 800 600 330 400 674 135 200 304 200 0 1998 1999 2000 Profit excl. sales of Gains on sale of fully developed properties fully developed properties 17
Slide 19: Project development
Project development Net sales 3 000 7 000 6 195 2 500 6 000 5 085 1 943 5 000 2 000 3 960 4 000 1 500 1 362 1 441 1 449 3 000 1 000 2 000 500 1 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 By quarter (MSEK) Rolling 12-month average 18
Slide 20: Project development
Project development Profit 637 600 12% 500 10% 10.3% 400 330 8% 300 213 217 6% 185 6.5% 200 124 4.7% 83 4% 100 0 2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 By quarter (MSEK) Rolling 12-month average (MSEK) Rolling 12-month margin (%) 19
Slide 21: The Group's net sales by business unit
The Group’s net sales by business unit MSEK 2000 1999 Stockholm Residential 2 421 1 658 Sweden 1 803 1 562 Stockholm Commercial 1 626 1 470 Business Development/Real Estate 550 668 International 761 627 Elimination's -312 -160 Total Group 6 849 5 825 20
Slide 22: The Group's profit by business unit
The Group’s profit by business unit MSEK 2000 1999 Stockholm Residential 378 180 Sweden 138 72 Stockholm Commercial 146 87 Business Development/Real Estate 762 695 International 72 33 Group-wide costs -56 -77 SPP – surplus 78 – Operating profit 1 518 990 21
Slide 23: Consolidated balance sheets
Consolidated balance sheets MSEK 31 Dec. 2000 31 Dec. 1999 Assets Management properties 6 445 6 855 Development properties 3 105 2 611 Other assets 1 874 1 584 Total 11 424 11 050 Equity and liabilities Equity 3 770 3 144 Provisions and liabilities 7 654 7 906 Total 11 424 11 050 Debt/equity ratio 1
Slide 24: Towards more efficient balance sheet
Towards more efficient balance sheet 0,65 5 0,6 4 0,55 3 0,5 2 0,45 1 0,4 0 1997 1998 1999 2000 Asset turnover, times Interest coverage ratio, times 23
Slide 25: Property sales in 2000
Property sales in 2000 MSEK 2 500 2 000 535 1 500 380 330 1 000 135 500 36 0 1996 1997 1998 1999 2000 Capital gains 24
Slide 26: Market value – Management properties
Market value – Management properties Mkr Target Book Market Surplus value value value Fully developed 2 000*) 4 286 6 352 2 066 Under construction 1 522 2 438 916 For further developm. 637 829 192 Total 6 445 9 619 3 174 *) Book value 25
Slide 27: Current surplus value realised by 2003
Current surplus value realised by 2003 MSEK 5000 4000 3000 2000 1000 0 1996 1997 1998 1999 2000 Target 2003 Surplus value Accumulated capital gains 26
Slide 28: Development properties
Development properties Book value MSEK 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1995 1996 1997 1998 1999 2000 27
Slide 29: Building rights
Building rights • More than 27 000 building rights • 200 000 sq.m. of commercial space in Stockholm • Well situated 28
Slide 30: Substantial potential in the building rights portfolio
Substantial potential in the building rights portfolio Present value table (MSEK) Revenue SEK/ sq.m. 15 000 16 000 17 000 18 000 19 000 Cost SEK/ sq.m. 11 000 5 000 6 200 7 500 8 800 10 100 12 000 3 700 5 000 6 200 7 500 8 800 13 000 2 400 3 700 5 000 6 200 7 500 14 000 1 100 2 400 3 700 5 000 6 200
Slide 31: Property portfolio
Property portfolio Stockholm 30
Slide 32: Lilla Essingen
Lilla Essingen Stockholm • Housing: approx. 700 • Production start: Jan 2000 • Completed: 2004-2005 • Anticipated average price: SEK 37 000 sq.m. (incl. VAT) • Acquisition price: MSEK 300 (SEK 4 000 sq.m.) Commercial space • Approx. 5 000 sq.m. 31
Slide 33: Liljeholmskajen
Liljeholmskajen Stockholm • Housing: approx. 2 500 • Production start: 2001 • Completed: 2007 • Anticipated average price: SEK : 33 000 sq.m. (incl. VAT) • Acquisition price: MSEK 520 (SEK 2 500 sq.m.) Commercial space • Approx. 12 000 sq.m. 32
Slide 34: Hagaberg
Hagaberg Värmdö • Housing: 6 detached homes • Floor space: approx. 180 sq.m. • Production start: March 2000 • Occupancy: autumn 2001 • Broadband, Screen fridge, control and monitoring systems etc. 33
Slide 35: Eriksberg
Eriksberg Gothenburg • Housing: approx. 160 • Production start: autumn 1998 • Completed: May 2002 • Anticipated average price: SEK 25 000 sq.m. (incl. VAT) • Acquisition price: MSEK 38 (SEK 2 800 sq.m.) 34
Slide 36: Frösunda
Frösunda Solna Commercial space • JM’s Head office • Current investment 30 000 sq.m. • Approx. 50 000 sq.m. to be developed in Northern Frösunda • Plans ready in 2002 • Office rents of approx. SEK 2 500 sq.m. 35
Slide 37: Nordic Hotel
Nordic Hotel Stockholm Commercial space • Stockholm’s largest hotel with 542 rooms • Opened in January 2001 • Vasagatan • Approx. 12 000 sq.m. • Anticipated average rent: SEK 4 000-5 000 sq.m. 36
Slide 38: Drammen
Drammen Norway • Housing: approx. 170 • Production start: Jun 1998 • Completed: Sept 2001 • Anticipated average price: SEK 18 000 sq.m. (incl. VAT) • Acquisition price: MSEK 11 (SEK 800 sq.m.) 37
Slide 39: Copenhagen
Copenhagen Denmark • Housing: 41 • Production start: Sept 2000 • Completed: Dec 2001 • Anticipated average price: approx. SEK 33 000 sq.m. (incl. VAT) • Acquisition price: MSEK 22 (SEK 4 500 sq.m.) 38
Slide 40: Buy-back of JM shares
Buy-back of JM shares • Strong cash flow – sale of fully developed properties and increasing project volume • Active management of total balance sheet • Targeted equity/assets ratio of 30 per cent • Board proposes buy-back of up to 10 per cent of own shares • Total distribution to shareholders of SE