Jm Ab · OMXSTO:JM
Jm Ab — Q2 2013 Earnings Presentation
31 slides from Jm Ab's earnings presentation, Jul 17, 2013
Slide 1: Interim report January – June 2013
Interim report January – June 2013
Slide 2: JM Group
JM Group Revenue: SEK 12.6 billion 1) Total assets: SEK 11.7 billion No. of building rights: 28,200 No. of employees: 2,162 19 % 1% Market cap: SEK 12.7 billion 2) 76 % 79 % Sweden Norway Finland 1% Denmark Belgium 1) 12-month period 0% 2) SEK 161 per share 2 │ 2013-07-17 │ ytf
Slide 3: Group Summary – According to segment reporting
Group Summary January – June 2013 According to segment reporting • Revenue decreased to SEK m % 1 800 14 SEK 6,244m (6,396) 1 600 12 1 400 • Operating profit was 10 1 200 SEK 709m (674) 1 000 8 800 6 • Operating margin increased 600 4 to 11.4 percent (10.5) 400 2 200 • Gains from property sales 0 20
Slide 4: Group Summary – According to IFRIC
Group Summary January – June 2013 According to IFRIC 15 • Revenue totaled SEK 6,094m (5,933) • Operating profit was SEK 638m (651) • Profit before tax decreased to SEK 609m (626) • Earnings per share amounted to SEK 5.70 (5.50) • Return on equity amounted to 23.5 percent (25.6). 4 │ 2013-07-17 │ ytf
Slide 5: Group Summary
Group Summary January – June 2013 • Number of residential units sold 1,652 1) (1,281) • Number of housing starts 1,382 1) (1,406) • Cash flow from operations was SEK -187m (-138), larger investments in development properties in Stockholm • Building rights portfolio 28,200 (27,700) 1) Of which 146 re
Slide 6: Operating profit according to IFRIC 15
Operating profit according to IFRIC 15 January - June Operating profit, SEK m 2013 2012 JM Residential Stockholm 531 483 JM Residential Sweden 113 119 JM International 52 66 JM Property Development 12 3 JM Production 30 29 Group-wide expenses -29 -26 Total as stated in segment reporting 709 674 Rest
Slide 7: Improved demand for the Swedish housing operations
Improved demand for the Swedish housing operations • Demand in Stockholm improved and some improvement in the market in rest of Sweden. Continued good demand in Norway • Total sales and reservations in Stockholm continued to improve during the second quarter • Planning processes impose a limit on th
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2009 – Q2 2013 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2009 2010 2011 2012 2013 Sthlm, Inner city Sthlm, Nearby suburbs Gothenburg Malmö Source: Mäklarstat
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 1 000 902 800 743 655 600 400 764 694 623 560 505 200 407 314 274 307 146 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2013 JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q
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 1 000 887 779 788 800 600 400 867 712 648 659 200 363 395 325 331 193 146 0 2011 2012 2013 2011 2012 2013 2011 2012 2013 2013 JM Residential Stockholm JM Residential Sweden JM International JM Property Develo
Slide 11: Farsta Strand
Farsta Strand Stockholm No. of residential units 286 Production starts Q2 2013 83 Completed 2015 11 │ 2013-07-17 │ ytf
Slide 12: Skeppsbyggaren
Skeppsbyggaren Västra Eriksberg - Gothenburg No. of residential units 406 Production starts Q2 2013 89 Completed 2015 12 │ 2013-07-17 │ ytf
Slide 13: Solheim Terrasse
Solheim Terrasse Lørenskog, Oslo No. of residential units 49 Production starts Q2 2013 49 Completed 2015 13 │ 2013-07-17 │ ytf
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 80 70 67 60 52 50 44 40 30 20 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 Stockholm Sweden International Average value 14 │ 2013-07-17 │ ytf
Slide 15: 5,633 residential units in current production
1) 5,633 residential units in current production Percentage sold/reserved implicates low Number risk in current production in Q2 2013 7 000 100% 6 000 80% 5 000 4 000 60% 3 000 40% 2 000 20% 1 000 0 0% jun-09 dec-09 jun-10 dec-10 jun-11 dec-11 jun-12 dec-12 jun-13 JM Residential Stockholm JM Residen
Slide 16: Residential units in current production
Residential units in current production JM Group 31 June 31 June 31 Dec 2013 2012 2012 Number of residential units 5,633 1) 5,769 5,988 Number of residential units sold 2,987 3,186 3,258 Number of residential units reserved 832 584 667 Sold residential units (%) 56 55 55 Reserved residential units (
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - June Full-year SEK m 2013 2012 2012 Revenue 2,701 2,790 5,591 Operating profit 531 483 1,041 Operating margin (%) 19.7 17.3 18.6 Number of available building rights 11,100 11,500 10,900 Number of residential units in current production 2,492 3,032 3,071 • Demand co
Slide 18: JM Residential Sweden
JM Residential Sweden January - June Full-year SEK m 2013 2012 2012 Revenue 1,500 1,573 3,003 Operating profit 1) 113 119 231 Operating margin (%) 7.5 7.6 7.7 Number of available building rights 9,300 9,500 9,200 Number of residential units in current production 1,596 1,533 1,492 1) Of which propert
Slide 19: JM International
JM International January - June Full-year SEK m 2013 2012 2012 Revenue 1,326 1,356 3,152 Operating profit 1) 52 66 181 Operating margin (%) 3.9 4.9 5.7 Number of available building rights 7,100 6,700 6,500 Number of residential units in current production 1,291 1,204 1,425 1) Of which property sales
Slide 20: JM Property Development
JM Property Development January - June Full-year SEK m 2013 2012 2012 Revenue 79 39 77 Operating profit 1) 12 3 -83 Number of available building rights 700 Number of residential units in current production 254 1) Of which -property sales 10 - 0 -impairment loss on project property - - -95 • Project
Slide 21: JM Production
JM Production January - June Full-year SEK m 2013 2012 2012 Revenue1) 889 965 2,006 Operating profit 30 29 71 Operating margin (%) 3.4 3.0 3.5 1) Of which internal 695 251 327 • Good demand • Solid orders • Decreasing revenue • Stable margin. 21 │ 2013-07-17 │ ytf
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 06/30/2013 06/30/2012 1) Stockholm 11,800 11,500 Malmö/Lund 4,000 4,250 Gothenburg 2) 2,000 2,250 Uppsala 3) 3,300 3,000 Norway 5,300 5,400 Copenhagen 700 700 Helsinki 700 100 Belgium 400 500 Total approximately 28,200 27,700 1) Of wh
Slide 23: Increased level of development properties
Increased level of development properties Building rights in Balance Sheet Jan-Jun SEK m 2010 2011 2012 2013 Opening balance 4,990 5,374 5,816 5,769 Plus 1,655 1,585 1,259 1,052 Minus -1,271 -1,143 -1,306 -507 Closing balance 5,374 5,816 5,769 6,314 23 │ 2013-07-17 │ 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) 06/30/2013 Sheet starts period, years JM Residential Stockholm 8,100 1,443 5.6 JM Residential Sweden 5,800 811 7.2 JM International 4,400 739 6.0 JM Property Development 100 146 0.7 Group 18,400 3,
Slide 25: 131 unsold residential units in the Balance Sheet, SEK 439m
131 unsold residential units in the Balance Sheet, SEK 439m SEK m 500 439 400 327 300 214 193 200 147 100 0 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 25 │ 2013-07-17 │ ytf
Slide 26: Cash flow Q2 2013
Cash flow Q2 2013 Q2 Q3 Q4 Q1 Q2 Cash flow statement, SEK m 2012 2012 2012 2013 2013 From operating activities 1) 2) -140 442 675 -309 122 From investing activities -2 0 0 0 2 From financing activities -560 -184 -225 -11 -671 Total cash flow for the quarter -702 258 450 -320 -547 Cash and cash equiv
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 34 percent (37) Available liquidity was SEK 4,407m 1 000 1 (4,567) of which cash and cash equivalents SEK 1,607m (1,767) 0 0 Unutilized overdraft facilities and credit line
Slide 28: Net financial items
Net financial items January – June 2013, SEK m Financial income 21 Financial income 17 Revaluation/currency hedging 1) 4 Financial expenses -50 Financial expenses -28 Revaluation/currency hedging 1) -4 Interest expense pensions -18 Net financial items -29 1) Refers to claims on JM International. 28
Slide 29: Components of profit/loss – housing business
Components of profit/loss – housing business Percentage of completion method (gross) Q2 2013 (Q1 2013) Cost-based effect Revaluation effect Sales effect SEK 269m (252) + SEK 174m (169) + SEK 88m (40) Always positive Usually positive Positive/negative Recognized expenses × Changed assessment about fo
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Group 256 221 213 169 174 Interna- Business segment Stockholm Sweden tional Total Q1 2013 119 46 4 169 Q2 2013 148 32 -6 174 The net of positive and negative revaluation effects in residential projects during Q2 201
Slide 31: JM today
JM today • Customer focused – strong brand • 28,200 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 •