Jm Ab · OMXSTO:JM
Jm Ab — Q1 2012 Earnings Presentation
31 slides from Jm Ab's earnings presentation, April 2012
Slide 1: Interim Report January - March 2012
Interim Report January - March 2012
Slide 2: JM Group
JM Group Revenues: SEK 12.4 billion 1) Total assets: SEK 11.5 billion No. of building rights: 27,200 1% 18 % No. of employees: 2,341 79 % Market cap: SEK 10.6 billion 2) Norway Sweden Finland 1% 1% Denmark Belgium 1) 12-month period 2) SEK 127 per share 2
Slide 3: Group Summary January – March 2012
Group Summary January – March 2012 According to segment reporting SEK m % • Revenues increased to 2 500 20 SEK 3,188m (2,491) 18 2 000 16 14 • Operating profit increased 1 500 12 to SEK 337m (278) 10 1 000 8 • Operating margin decreased 6 500 4 to 10.6 percent (11.2). 2 0 0 2007 2008 2009 2010 2011
Slide 4: Group Summary according to IFRIC
Group Summary January – March 2012 According to IFRIC 15 • Revenues increased to SEK 2,987m (2,547) • Operating profit increased SEK 329m (279) • Profit before tax increased SEK 316m (265) • Earnings per share increased to SEK 2.70 (2.20) • Return on equity increased to 24.2 precent (18.5). 4
Slide 5: Group Summary
Group Summary January – March 2012 • Number of residential units sold 627 (840) • Number of housing starts 631 (908) • Cash flow from operations totaled SEK 2m (-65) • Building rights portfolio 27,200 (26,300). 5
Slide 6: Operating profit according to IFRIC
Operating profit according to IFRIC 15 January - March Operating profit, SEK m 2012 2011 JM Residential Stockholm 244 183 JM Residential Sweden 59 68 JM International 32 24 JM Property Development 1 1 JM Production 14 13 Group-wide expenses -13 -11 Total as stated in segment reporting 337 278 Restat
Slide 7: Cautious demand - some improvement during the later portion of the quarter
Cautious demand - some improvement during the later portion of the quarter • Continued cautious demand in Sweden - some improvement was noted during the later portion of the quarter. Continued good demand in Norway • The sales process is taking longer than usual. The interest in JM projects continue
Slide 8: Prices on the existing home market
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market 2005 - 2012 SEK/sq.m. 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2005 2006 2007 2008 2009 2010 2011 2012 Sthlm, Inner city Sthlm, Nearby suburbs Gothe
Slide 9: Lower sales rate residential units
Lower sales rate residential units No. of units 2 000 1 800 1 600 1,408 1,401 1 400 1,207 1 200 1,056 1 000 800 661 655 600 400 200 358 395 308 320 225 176 174 143 125 0 2010 2011 2012 2010 2011 2012 2010 2011 2012 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2 -Q4 9
Slide 10: Lower level of housing starts
Lower level of housing starts No. of units 2 000 1 800 1,684 1,604 1 600 1 400 1,230 1 200 1,157 1 000 788 800 570 600 400 200 364 428 345 327 221 153 164 153 133 0 2010 2011 2012 2010 2011 2012 2010 2011 2012 JM Residential Stockholm JM Residential Sweden JM International Q1 Q2 -Q4 10
Slide 11: Ekparken - Dalénum, Lidingö
Ekparken - Dalénum, Lidingö Stockholm No. of residential units approx. 750 Production starts Q1 2012 77 Completed 2013 11
Slide 12: Kaprifolen
Kaprifolen Uppsala No. of residential units approx. 200 Production starts Q1 2012 34 Completed 2013 12
Slide 13: Malerhaugveien
Malerhaugveien Norway No. of residential units 81 Production starts Q1 2012 81 Completed 2013 13
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase Number 100 90 80 70 67 60 58 53 50 40 38 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 Stockholm Sweden International Average value 14
Slide 15: 5,786 residential units in current production
5,786 residential units in current production Percentage sold/reserved implicates normal Number risk in current production in Q1 2012 4 000 100% 3 500 80% 3 000 2 500 60% 2 000 1 500 40% 1 000 20% 500 0 0% dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- 07 0
Slide 16: Residential units in current production
Residential units in current production JM Group 31 Mar 31 Mar 31 Dec 2012 2011 2011 Number of residential units 5,786 5,957 6,401 Number of residential units sold 3,246 3,899 3,820 Number of residential units reserved 503 803 536 Sold residential units (%) 56 65 60 Reserved residential units (%) 9
Slide 17: JM Residential Stockholm
JM Residential Stockholm Januari - March Full year SEK m 2012 2011 2011 Revenue 1,414 1,045 5,141 Operating profit 244 183 1,028 Operating margin (%) 17.3 17.5 20.0 Number of available building rights 11,500 10,700 11,800 Number of residential units in current production 3,059 2,931 3,290 • Cautious
Slide 18: JM Residential Sweden
JM Residential Sweden January - March Full Year SEK m 2012 2011 2011 Revenue 783 792 3,355 Operating profit 59 68 301 Operating margin (%) 7.5 8.6 9.0 Number of available building rights 9,000 8,900 8,800 Number of residential units in current production 1,571 1,953 1,973 • Cautious demand and slowe
Slide 19: JM International
JM International January - March Full Year SEK m 2012 2011 2011 Revenue 660 417 2,349 Operating profit 32 24 159 Operating margin (%) 4.8 5.8 6.8 Number of available building rights 6,700 6,700 6,600 Number of residential units in current production 1,156 1,073 1,138 • Good demand and sales in Norwa
Slide 20: JM Property Development
JM Property Development January - March Full Year SEK m 2012 2011 2011 Revenue 21 16 73 Operating profit 1 1 15 • Project development of commercial properties ongoing in the Dalénum area on Lidingö – 81 % occupancy rate • Production of special housing for the elderly with 54 residential units in Dal
Slide 21: JM Production
JM Production January - March Full Year SEK m 2012 2011 2011 Revenue1) 455 347 1,986 Operating profit 14 13 84 Operating margin (%) 3.1 3.7 4.2 1) Of which internal 145 126 687 • Good demand • Solid orders • Increased revenue • Decreased margin due to projects obtained during a period of high compet
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights Region 2012-03-31 2011-03-31 Stockholm 11,500 10,700 Malmö/Lund 4,000 3,600 Gothenburg 1) 2,100 2,100 Uppsala 2) 2,900 3,200 Norway 5,400 4,900 Copenhagen 700 750 Helsinki 100 150 Belgium 500 900 Total approximately 27,200 26,300 1) West reg
Slide 23: Stable level of development properties
Stable level of development properties Building rights in Balance Sheet Q1 SEK m 2009 2010 2011 2012 Opening balance 5,620 4,990 5,374 5,816 Plus 428 1,655 1,585 278 1) Minus -1,058 -1,271 -1,143 -296 Closing balance 4,990 5,374 5,816 5,798 1) Including impairment losses of SEK 87m 23
Slide 24: Approx. 5 years production in Balance Sheet
Approx. 5 years production in Balance Sheet 1) No. building rights In Balance Production Average 3) 2) 2012-03-31 Sheet starts period, years JM Residential Stockholm 7,200 1 601 4.5 JM Residential Sweden 5,800 983 5.9 JM International 4,600 768 5.9 Group 17,600 3 352 5.3 1) Residential building righ
Slide 25: 61 unsold residential units in the Balance Sheet – SEK 168m
61 unsold residential units in the Balance Sheet – SEK 168m SEK m 200 180 168 160 150 140 115 115 120 99 100 80 60 40 20 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 25
Slide 26: Cash flow Q1 2012
Cash flow Q1 2012 Q1 Q2 Q3 Q4 Q1 Cash flow statement, SEK m 2011 2011 2011 2011 2012 Cash flow from operating activities 1) 2) -65 -78 316 560 2 Cash flow from investment activities 41 -1 -145 12 0 Cash flow from financing activities -38 -158 -44 -50 30 Total cash flow for the quarter -62 -237 127 5
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 42 percent (40) • Available liquidity was SEK 5,269m 1 000 1 (4,824) of which cash and cash equivalents SEK 2,469m (2,024) 0 0 • Unutilized overdraft facilities and credi
Slide 28: Net financial items
Net financial items January – March 2012, SEK m Financial income 11 Financial income 10 Revaluation/currency hedging 1) 1 Financial expenses -24 Financial expenses -14 Revaluation/currency hedging 1) -1 Interest expense pensions -9 Net financial items -13 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) Q1 2012 (Q4 2011) Cost-based effect Revaluation effect Sales effect SEK 267m (341) + SEK 258m (351) + SEK -32m (-56) Always positive Usually positive Positive/negative Recognized expenses x Changed assessment about
Slide 30: Revaluation effects – housing business
Revaluation effects – housing business SEK m Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Group 262 301 303 351 258 Interna- Business segment Stockholm Sweden tional Total Q4 2011 231 74 46 351 Q1 2012 142 84 32 258 The net of positive and negative revaluation effects in residential projects during Q1 20
Slide 31: JM today
JM today • Customer-focused – strong brand • 27,200 residential building rights in attractive locations – high quality and good distribution • Some uncertainty regarding the economic development, but fundamentally favorable prospects • Industrialized process and attractive homes • Strong balance she