Jm Ab · OMXSTO:JM
Jm Ab — Q3 2013 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Oct 24, 2013
Slide 1: Interim report January – September 2013
Interim report January – September 2013
Slide 2: JM Group
JM Group Revenue: SEK 12.1 billion 1) Total assets: SEK 11.3 billion No. of building rights: 27,700 No. of employees: 2,171 19 % 1% Market cap: SEK 14.4 billion 2) 79 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 184 per share 2 │ 2013-10-24 │ ytf
Slide 3: Group Summary: According to segment reporting
Group Summary January – September 2013 According to segment reporting • Revenue decreased to SEK m % 1 800 14 SEK 9,054m (9,334) 1 600 12 1 400 • Operating profit increased to 10 1 200 SEK 1,062m (1,019) 1 000 8 800 6 • Operating margin increased 600 4 to 11.7 percent (10.9) 400 2 200 • Gains from p
Slide 4: Group Summary: According to IFRIC
Group Summary January – September 2013 According to IFRIC 15 • Revenue totaled SEK 8,712m (9,041) • Operating profit was SEK 982m (1,010) • Profit before tax totaled SEK 935m (968) • Earnings per share amounted to SEK 8.80 (8.50) • Return on equity amounted to 22.7 percent (23.9). 4 │ 2013-10-24 │ y
Slide 5: Group Summary
Group Summary January – September 2013 • Number of residential units sold 2,462 1) (1,892) • Number of housing starts 2,072 1) (2,165) • Cash flow from operations was SEK – 76m (304), large investments in development properties in Stockholm • Building rights portfolio 27,700 (27,600) 1) Of which 254
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - September Operating profit, SEK m 2013 2012 JM Residential Stockholm 788 732 JM Residential Sweden 158 165 JM International 82 107 JM Property Development 21 7 JM Production 47 43 Group-wide expenses -34 -35 Total as stated in segment reporting 1,062
Slide 7: Improved demand for the Swedish housing operations
Improved demand for the Swedish housing operations • Continued improved demand for the Swedish housing operations. In Norway demand slowed somewhat. • Planning processes impose a limit on the number of housing starts in Stockholm during 2013 • The percentage of sold/reserved residential units in rel
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q3 2008 – Q3 2013 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 Sthlm, Inner city Sthlm, Nearby subu
Slide 9: Residential units sales improved
Residential units sales improved Number of units 1 600 1,401 1 400 1,307 1 200 1,056 1 000 902 800 743 655 600 1072 1060 400 833 852 735 610 200 442 449 413 254 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2013 JM Residential Stockholm JM Residential Sweden JM International JM Property Development
Slide 10: Housing starts at unchanged level
Housing starts at unchanged level Number of units 1 800 1,684 1 600 1,507 1 400 1 200 1,157 1 000 788 887 779 800 1335 600 1163 978 956 400 618 565 529 473 200 276 200 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2013 JM Residential Stockholm JM Residential Sweden JM International JM Property Deve
Slide 11: Kavaljeren
Kavaljeren Täby No. of residential units 182 Production starts Q3 2013 62 Completed 2015 11 │ 2013-10-24 │ ytf
Slide 12: Åriket
Åriket 2 Uppsala No. of residential units 800 Production starts Q3 2013 72 Completed 2015 12 │ 2013-10-24 │ ytf
Slide 13: Marilunden
Marilunden Oslo No. of residential units 25 Production starts Q3 2013 25 Completed 2015 13 │ 2013-10-24 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 80 70 60 55 50 45 40 35 30 20 12 10 0 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 Stockholm Sweden International Average value 14 │ 2013-10-24 │ ytf
Slide 15: 5,689 residential units in current production
1) 5,689 residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q3 2013 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 2009 2010 2010 2011 2011 2012 2012 2013 2013 JM
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Sep 31 Sep 31 Dec 2013 2012 2012 Number of residential units 5,689 1) 5,986 5,988 Number of residential units sold 3,025 3,199 3,258 Number of residential units reserved 825 770 667 Sold residential units (%) 56 53 55 Reserved residential units (%)
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - September Full-year SEK m 2013 2012 2012 Revenue 3,779 4,126 5,591 Operating profit 788 732 1,041 Operating margin (%) 20.9 17.7 18.6 Number of available building rights 11,000 11,100 10,900 Number of residential units in current production 2,475 3,167 3,071 • Dema
Slide 18: JM Residential Sweden
JM Residential Sweden January - September Full-year SEK m 2013 2012 2012 Revenue 2,080 2,185 3,003 Operating profit 1) 158 165 231 Operating margin (%) 7.6 7.6 7.7 Number of available building rights 9,000 9,400 9,200 Number of residential units in current production 1,619 1,668 1,492 1) Of which pr
Slide 19: JM International
JM International January - September Full-year SEK m 2013 2012 2012 Revenue 1,944 2,001 3,152 Operating profit 1) 82 107 181 Operating margin (%) 4.2 5.3 5.7 Number of available building rights 7,100 7,100 6,500 Number of residential units in current production 1,287 1,151 1,425 1) Of which property
Slide 20: JM Property Development
JM Property Development January - September Full-year SEK m 2013 2012 2012 Revenue 250 56 77 Operating profit 1) 21 7 -83 Number of available building rights 600 Number of residential units in current production 308 1) Of which -property sales 11 0 0 -impairment loss on project property - - -95 • Pr
Slide 21: JM Production
JM Production January - September Full-year SEK m 2013 2012 2012 Revenue1) 1,357 1,428 2,006 Operating profit 47 43 71 Operating margin (%) 3.5 3.0 3.5 1) Of which internal 695 356 462 • Good demand • Solid orders • Decreasing revenue • Stable margin. 21 │ 2013-10-24 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 09/30/2013 09/30/2012 1) Stockholm 11,600 11,100 Malmö/Lund 3,800 4,300 Gothenburg 2) 2,000 2,100 Uppsala 3) 3,200 3,000 Norway 5,300 5,300 Copenhagen 700 700 Helsinki 700 600 Belgium 400 500 Total approximately 27,700 27,600 1) Of wh
Slide 23: Increased level of development properties
Increased level of development properties Building rights in Balance Sheet Jan-Sep SEK m 2010 2011 2012 2013 Opening balance 4,990 5,374 5,816 5,769 Plus 1,655 1,585 1,259 1,095 Minus -1,271 -1,143 -1,306 -722 Closing balance 5,374 5,816 5,769 6,142 23 │ 2013-10-24 │ ytf
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet No. building rights 1) In Balance Production 2) Average 3) 09/30/2013 Sheet starts period, years JM Residential Stockholm 7,900 1,322 6.0 JM Residential Sweden 5,600 868 6.5 JM International 4,400 680 6.5 JM Property Development 100 200 0.5 Group 18,000 3,
Slide 25: 119 unsold residential units in the Balance Sheet, SEK 401m
119 unsold residential units in the Balance Sheet, SEK 401m SEK m 500 439 401 400 327 300 214 193 200 100 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 25 │ 2013-10-24 │ ytf
Slide 26: Cash flow Q3 2013
Cash flow Q3 2013 Q3 Q4 Q1 Q2 Q3 Cash flow statement, SEK m 2012 2012 2013 2013 2013 From operating activities 1) 2) 442 675 -309 122 111 From investing activities 0 0 0 2 -1 From financing activities -184 -225 -11 -671 -116 Total cash flow for the quarter 258 450 -320 -547 -6 Cash and cash equivale
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 36 percent (39) Available liquidity was SEK 4,400m 1 000 1 (4,822) of which cash and cash equivalents SEK 1,600m (2,022) 0 0 Unutilized overdraft facilities and credit line
Slide 28: Net financial items
Net financial items January – September 2013, SEK m Financial income 29 Financial income 22 Revaluation/currency hedging 1) 7 Financial expenses -76 Financial expenses -42 Revaluation/currency hedging 1) -7 Interest expense pensions -27 Net financial items -47 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 2013 (Q2 2013) Cost-based effect Revaluation effect Sales effect SEK 202m (269) + SEK 176m (174) + SEK 73m (88) 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 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Group 221 213 169 174 176 Interna- Business segment Stockholm Sweden tional Total Q2 2013 148 32 -6 174 Q3 2013 144 20 12 176 The net of positive and negative revaluation effects in residential projects during Q3 20
Slide 31: JM today
JM today • Customer focused – strong brand • 27,700 building rights in attractive locations • Uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance sheet – focus on cash flow • Well balanced risk profile •