Jm Ab · OMXSTO:JM
Jm Ab — Q3 2020 Earnings Presentation
34 slides from Jm Ab's earnings presentation, Oct 22, 2020
Slide 1: Interim Report January - September 2020
Interim Report January - September 2020
Slide 2: JM Group
1) JM Group Revenue: SEK 15.2 billion Total assets: SEK 17.1 billion No. of building rights: 37,900 No. of employees: 2,567 7% Market Cap: SEK 18.9 billion 2) 19 % 74 % Norway Sweden Finland 1) According to segment reporting 2) SEK 272 per share, October 21, 2020 2 Investor presentation / ytf 10/22/
Slide 3: Group Summary
Group Summary 1) J A N U A RY – S E P T E M B E R 2 0 2 0 • Revenue amounted to SEK 10,858m (11,381) and SEK m % operating profit amounted to SEK 1,239m (1,449) 2). 2 500 20 The operating margin was 11.4 percent (12.7). 18 • Revenue excluding JM Construction, Business area 2 000 16 14 Construction (
Slide 4: Group Summary
Group Summary 1) J A N U A RY – S E P T E M B E R 2 0 2 0 • Profit before tax amounted to • Return on equity decreased to SEK 1,185m (1,387). 18.8 percent (22.2). • Earnings per share decreased to • Cash flow from operations amounted to SEK 13.30 (16,20). SEK 427m (817). 1) According to segment repo
Slide 5: Group Summary
Group Summary J A N U A RY – S E P T E M B E R 2 0 2 0 • Number of residential units sold amounted to 2,403 (2,654) with increased sales compared to the second quarter. • Number of housing starts were 2,223 (2,162). • Residential building rights portfolio increased to 37,900 (36,400). Patruunanmäki,
Slide 6: Operating profit
Operating profit According to segment January - September reporting, SEK m 2020 2019 JM Residential Stockholm 627 654 JM Residential Sweden 476 530 JM International 140 239 JM Property Development 0 191 JM Construction 23 -141 Group-wide expenses -27 -24 Total 1,239 1,449 Of which sale of properties
Slide 7: Recovery in the housing business
Recovery in the housing business • The housing market in Sweden has had a stable development during the third quarter, which started cautiously due to COVID-19. • Clear recovery in demand from customers in Stockholm in the third quarter. • Good profitability with good sales and housing starts in the
Slide 8: Prices on the existing home market
Prices on the existing home market SEK/sq.m. Tenant-owned apartment prices in cities, existing home market Q3 2011 – Q3 2020 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stockholm Inner city S
Slide 9: Positive development in sales
Positive development in sales Number of units 1 800 1 600 1 400 1 200 1,120 1,084 1,015 1 000 917 851 353 313 275 800 239 695 286 600 226 866 376 400 767 771 828 740 678 709 565 469 200 376 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 JM Residential Stockholm JM Residential Sweden J
Slide 10: Increased level of housing starts
Increased level of housing starts Number of units 2 000 1 800 1 600 1 400 1 200 1,095 1,043 1,042 989 1 000 915 857 260 291 800 336 480 195 391 600 400 750 783 804 822 320 662 653 562 651 524 192 143 200 128 143 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 JM Residential Stockholm J
Slide 11: Facetten
Facetten S TO C K H O L M Number of housing starts Q3 2020 65 Completed in 2023 11 Investor presentation / ytf 10/22/2020
Slide 12: Kungsgatan två
Kungsgatan 66 två UPPSALA Number of housing starts Q3 2020 60 Completed in 2021 12 Investor presentation / ytf 10/22/2020
Slide 13: Tirehtööri
Tirehtööri HELSINKI, FINLAND Number of housing starts Q2 2020 121 Completed in 2023 13 Investor presentation / ytf 10/22/2020
Slide 14: Average number of housing starts per phase
Average number of housing starts per phase, units in apartment blocks Number 160 140 120 100 84 80 80 78 71 60 40 20 0 Stockholm Sweden International Average value, total 14 Investor presentation / ytf 10/22/2020
Slide 15: 7,829 residential units in current production
1) 7,829 residential units in current production P E R C E N TA G E S O L D / R E S E RV E D I M P L I C AT E S B A L A N C E D R I S K I N C U R R E N T P R O D U C T I O N I N Q 3 2 0 2 0 Number 10 000 100% 9 000 8 000 80% 7 000 6 000 60% 5 000 4 000 40% 3 000 2 000 20% 1 000 0 0% Q3 Q4 Q1 Q2 Q3 Q
Slide 16: Residential units in current production
Residential units in current production J M G RO U P Sept 30 Sept 30 Dec 31 2020 2019 2019 Number of residential units 1) 7,829 8,033 7,813 Number of residential units sold 4,074 4,047 3,798 Number of residential units reserved 1,188 770 906 Sold residential units, % 55 55 53 Reserved residential un
Slide 17: JM Residential Stockholm
JM Residential Stockholm January - September Full Year SEK m 2020 2019 2019 Revenue 4,335 4,024 5,575 Operating profit 1) 627 654 916 Operating margin, % 14.5 16.3 16.4 Number of available building rights 12,600 13,000 12,800 Number of residential units in current production 3,095 3,112 3,171 1) Of
Slide 18: JM Residential Sweden
JM Residential Sweden January - September Full Year SEK m 2020 2019 2019 Revenue 3,056 3,283 4,468 Operating profit 1) 476 530 719 Operating margin, % 15.6 16.1 16.1 Number of available building rights 10,200 10,500 10,500 Number of residential units in current production 2,138 2,426 1,994 1) Of whi
Slide 19: JM International
JM International January - September Full Year SEK m 2020 2019 2019 Revenue 2,645 2,746 4,021 of which JM Norway 1,910 2,276 3,186 Operating profit 1) 140 239 355 of which JM Norway 92 208 298 Operating margin, % 5.3 8.7 8.8 of which JM Norway 4.8 9.1 9.4 Number of available building rights 13,900 1
Slide 20: JM Property Development
JM Property Development January - September Full Year SEK m 2020 2019 2019 Revenue 112 187 227 Operating profit 0 191 194 Number of available building rights 1,200 800 800 Number of residential units in current production 463 736 600 1) Of which property sales - 170 170 • Three completed rental proj
Slide 21: JM Construction
JM Construction January - September Full Year SEK m 2020 2019 2019 Revenue 1) 946 1,344 1,691 of which Business area Construction 127 222 254 Operating profit 2) 23 -141 -141 of which Business area Construction -24 -207 -235 Operating margin, % 2.4 -10.5 -8.3 of which Business area Construction -18.
Slide 22: Available building rights portfolio
Available building rights portfolio No. of building rights 1) Region 09/30/2020 09/30/2019 2) 2) Stockholm 13,800 13,800 Malmö/Lund 2,800 2,800 Gothenburg 3) 3,700 3,600 Uppsala 4) 3,700 4,100 Norway 8,500 8,100 Helsinki 5,400 4,000 Total 37,900 36,400 1) Rounded to the nearest hundred 2) Of which 1
Slide 23: Decreased level of development properties
Decreased level of development properties BUILDING RIGHTS IN BALANCE SHEET Jan-Sep SEK m 2017 2018 2019 2020 Opening balance 7,121 7,543 8,306 8,938 Additions 2,017 2,402 1,745 773 Subtractions -1,595 -1,639 -1,113 -1,300 Closing balance 7,543 8,306 8,938 8,411 23 Investor presentation / ytf 10/22/2
Slide 24: Approx. 6 years production in Balance Sheet
Approx. 6 years production in Balance Sheet No. of residential building rights In Balance Housing Average period, 1) 2) 09/30/2020 Sheet starts years JM Residential Stockholm 7,500 1,086 6.9 JM Residential Sweden 6,600 1,113 5.9 JM International 6,700 1,131 5.9 JM Property Development 300 - - Group
Slide 25: Project properties
Project properties Carrying amount, SEK m 09/30/2020 09/30/2019 12/31/2019 Properties under development 890 688 801 1) Completed rental unit properties 870 587 587 Completed commercial properties 31 11 11 Total 1,791 1,286 1,399 1) Tjärtunnan, Stureby, Stockholm187 apartments Alphyddan, Nacka, 93 st
Slide 26: 107 unsold residential units in Balance Sheet, SEK 558m
107 unsold residential units in Balance Sheet, SEK 558m SEK m 700 603 600 558 500 422 438 400 366 300 200 100 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 26 Investor presentation / ytf 10/22/2020
Slide 27: Cash flow
Cash flow Cash flow statement, SEK m Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 From operating activities 1) 2) 3) 446 474 188 404 -165 From investing activities -6 -2 -1 0 0 From financing activities 349 -28 105 -516 -93 Total cash flow for the quarter 789 444 292 -112 -258 Cash and cash equivalents e
Slide 28: Strong financial position and liquidity
Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) 1) SEK m times • Equity/Assets ratio 1) 45 percent (40) 1 000 1 • Available liquidity was SEK 5,114m (4,755) of which cash and cash equivalents 500 409 0,5 SEK 2,314m (1,955) • Unutilized overdraft facilities and
Slide 29: Net financial items
Net financial items January - September SEK m 2020 2019 Financial income 5 3 Financial income 5 3 Interest expenses -39 -39 Interest expense pensions -20 -26 Financial expenses -59 -65 Net financial items -54 -62 29 Investor presentation / ytf 10/22/2020
Slide 30: Components of profit/loss – housing business
Components of profit/loss – housing business P E R C E N TA G E O F C O M P L E T I O N M E T H O D ( G R O S S ) Q 3 2 0 2 0 ( Q 2 2 0 2 0 ) Cost-based effect SEK 269m (338) + Revaluation effect SEK 234m (236) + Sales effect SEK 68m (35) Always positive Usually positive Positive / negative Recogniz
Slide 31: Revaluation effects – housing business
Revaluation effects – housing business SEKm Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Group 198 255 146 236 234 Business segment Stockholm Sweden International Total Q2 2020 13 190 33 236 Q3 2020 36 136 62 234 The net of positive and negative revaluation effects in residential projects during Q3 2020
Slide 32: COVID-19 and customers
COVID-19 and customers • Increased customer acitivity during the quarter • Digital solutions worked very well • Online viewings • Online reservations • Signing agreement online • Updated web sites 32 Investor presentation / ytf 10/22/2020
Slide 33: JM today
JM today • Customer focused – strong brand • 37,900 building rights in attractive locations • Fundamentally favorable conditions • Reduced uncertainty connected to COVID-19 • Gradual broadening of geographic scope • Sustainable urban planning • Efficient management systems • Investments in digital s
Slide 34: History is made in our homes
History is made in our homes