Jm Ab · OMXSTO:JM
Jm Ab — Q1 2005 Earnings Presentation
21 slides from Jm Ab's earnings presentation, May 2005
Slide 1: JM Group Interim Report January - March 2005
JM Group Interim Report January - March 2005 May 2005
Slide 2: Group summary
Group summary January – March 2005 • Net sales increased by 4% to SEK 2,054m (1,982) • Profit after financial items amounted to SEK 155m (148) • Property sales of SEK 352m (404) provided capital gains of SEK 38m (61) 2005-05-09 050510_Holland_ytf 1
Slide 3: Group summary
Group summary January – March 2005 • Number of sold residential units 1,021 (1,265) • Number of housing starts 781 (743) • Earning per share for the first quarter of 2005 amounted to SEK 3.90 (3.80) • Return on equity for the past 12-month period amounted to 14% 2005-05-09 050510_Holland_ytf 2
Slide 4: Important events 2005
Important events 2005 Good market and sales • Good demand in all JM’s housing markets • Continued favourable sales trend for residential units in the form of signed contracts • Stable profit and margin development in project development business 2005-05-09 050510_Holland_ytf 3
Slide 5: Key measures 2004
Key measures 2004 Continued streamlining and new business • Continued priority for efficiency enhancement and reduced costs. • Strong cash flow reduced interest-bearing net debt to SEK 0.16m (2.8) • Start of office develop- ment in Frösunda, Stockholm, 10,000 sq.m. 2005-05-09 050510_Holland_ytf 4
Slide 6: Continued good demand throughout Sweden
Continued good demand throughout Sweden Tenant-owned apartment prices in cities, second-hand market 1997 - 2004 SEK/sq.m. 40000 35000 30000 25000 20000 15000 10000 5000 0 97 98 99 00 01 02 03 04 05 3 3 3 3 3 3 3 3 Q Q Q Q Q Q Q Q 19 19 19 20 20 20 20 20 20 1 1 1 1 1 1 1 1 1 Q Q Q Q Q Q Q Q Q Sthlm,
Slide 7: Record for sold homes
Record for sold homes Group No. of sold units 4,315 4 500 4 000 3,189 3 500 3 000 2,511 2 500 2 000 1 500 1 000 500 1 265 1021 555 490 0 2002 2003 2004 Jan-Mar 2005 2005-05-09 050510_Holland_ytf 6
Slide 8: Stable number of production starts
Stable number of production starts Group Number 3 943 4 000 3 500 2 711 2 714 3 000 2 500 2 000 1 500 1 000 500 600 743 781 317 0 2002 2003 2004 Jan-Mar 2005 2005-05-09 050510_Holland_ytf 7
Slide 9: JM Residential Stockholm
JM Residential Stockholm January - March Full year SEKm 2005 2004 2004 Net sales 868 825 3,438 Operating profit 75 60 296 Operating margin (%) 8.6 7.3 8.6 Number of available building rights 9,400 10,300 9,100 • Strong sales • Cost control • Improved margins 2005-05-09 050510_Holland_ytf 8
Slide 10: JM Residential Sweden
JM Residential Sweden January - March Full year SEKm 2005 2004 2004 Net sales 677 584 2,417 Operating profit 57 50 202 Operating margin (%) 8.4 8.6 8.4 Number of available building rights 7,500 7,300 7,400 • God sales • Increase in net sales • Stable margins 2005-05-09 050510_Holland_ytf 9
Slide 11: JM International
JM International January - March Full year SEKm 2005 2004 2004 Net sales 333 372 1,866 Operating profit 32 22 117 Operating margin (%) 9.6 5.9 6.3 Number of available building rights 5,400 5,400 5,400 • Stable prices and favourable market • Large supply of new housing in Norway • Temporarily reduced
Slide 12: JM Property Development
JM Property Development January - March Full year SEKm 2005 2004 2004 Net sales 64 66 276 Operating profit 23 68 201 • Stabilised rental levels in Stockholm • Start of office development in Frösunda, Stockholm, 10,000 sq.m. • Development of residential portfolio in Älta/Vaxholm, Stockholm 2005-05-09
Slide 13: JM Production
JM Production January - March Full year SEKm 2005 2004 2004 Net sales 213 193 931 Operating profit 8 13 43 Operating margin (%) 3.8 6.7 4.6 • Stable development • Cost control • Three larger new projects 2005-05-09 050510_Holland_ytf 12
Slide 14: Change in development properties
Change in development properties Building rights in balance sheet Jan - Mar SEKm 2002 2003 2004 2005 Opening balance 4,048 3,871 3,631 2,971 Plus 629 664 275 202 ) Minus -806 * -904 -935 -280 Closing balance 3,871 3,631 2,971 2,893 *) of which write-down SEK 211m 2005-05-09 050510_Holland_ytf 13
Slide 15: Available building rights Q1 2005
Available building rights Q1 2005 No of Building rights Stockholm 9,400 Gothenburg 1,950 Malmö/Lund 2,650 Uppsala 1,600 Rest of Sweden 1,300 Oslo/Bergen 4,200 Copenhagen 900 Brussels 300 Total approx. 22,300 2005-05-09 050510_Holland_ytf 14
Slide 16: Fewer unsold residential units in the balance sheet
Fewer unsold residential units in the balance sheet SEKm 450 400 350 300 250 200 150 100 50 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 2005-05-09 050510_Holland_ytf 15
Slide 17: Strong cash flow Q1 2005
Strong cash flow Q1 2005 Group Q4 Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEKm 2003 2004 2004 2004 2004 2005 From operating activities *) 1,530 -191 1,062 293 997 516 From investing activities -25 0 -2 -9 0 -40 From financing activities -1,315 -28 -697 -336 -136 36 Total cash flow for the period 190 -21
Slide 18: Consolidated balance sheet
Consolidated balance sheet SEKm 31/03/2005 31/03/2004 31/12/2004 Assets Project properties 2,041 2,604 2,246 Development properties 2,893 3,488 2,971 Other assets 3,667 3,020 3,035 Total 8,601 9,112 8,252 Shareholders’ equity and liabilities Shareholders’ equity 3,558 3,250 3,465 Other liabilities 5
Slide 19: Project properties for development
Project properties for development Occupancy rate Book value SEKm annual rent 31/03/2005 31/302005 31/032004 31/12/2004 Fully developed commercial properties 99 % 905 1,433 1,078 Residential (tenancy rights) 80 % 166 615 671 Commercial properties under development 66 % 970 556 497 Total project prop
Slide 20: Reduced interest-bearing net debt and debt/equity ratio
Reduced interest-bearing net debt and debt/equity ratio SEKm times 6000 6 5000 5 4000 4 3000 3 2000 2 1000 1 0 0 1999 2000 2001 2002 2003 2004 March 05 Interest-bearing net debt Debt/equity ratio 2005-05-09 050510_Holland_ytf 19
Slide 21: JM looking ahead
JM looking ahead • Customer focused – strong brand • Market leader – tenant-owned units • Approx. 22,000 residential building rights in attractive locations • Strong balance sheet and offensive capacity • Focus on cash flow – from project to Group • Industrialised process and attractive homes • Hous