Interim Report January-March 2020
JM Group 1) Revenue: SEK 15.8 billion Total assets: SEK 17.4 billion No. of building rights: 35,900 No. of employees: 2,540 6% Market Cap: SEK 12.1 billion 2) 20 % 74 % Sweden Norway Finland 1) According to segment reporting 2) SEK 174 per share, April 27, 2020 2 Investor presentation / ytf 04/28/2020
Group Summary 1) J A N U A RY – M A RC H 2 0 2 0 • Revenue increased to SEK 3,814m (3,669) and operating SEK m % profit increased to SEK 483m (313 ) 2). The operating 2 500 20 margin increased to 12.7 percent (8.5) 18 • Revenue excluding JM Construction, Business area 2 000 16 Construction (under closure), amounted to SEK 3,768m 14 (3,719), the operating profit to SEK 491m (506) and the 1 500 12 operating margin to 13.0 percent (13.6) 10 1 000 8 • Gains from sale of properties and operations 6 SEK 18m (38). 500 4 2 1) According to segment reporting 0 0 2) The profit included a one-off cost for the discontinuation of the housing 2016 2017 2018 2019 April/March operations (Business area Construction) in JM Construction of SEK -180m 2019/2020 reported during Q1 2019. Operating profit Operating margin 3 Investor presentation / ytf 04/28/2020
Group Summary 1) J A N U A RY – M A RC H 2 0 2 0 • Profit before tax increased to • Return on equity amounted to SEK 462m (291) 23.3 percent (18.4) • Earnings per share increased to • Cash flow from operations was SEK 5.20 (3.30) SEK 188m (468) 1) According to segment reporting Ikon, Linköping 63 residential units Bekkeskogen tr 1, Tønsberg,, Norway 6 single-family homes 4 Investor presentation / ytf 04/28/2020
Group Summary J A N U A RY – M A RC H 2 0 2 0 • Number of residential units sold increased to 805 (667) • Number of housing starts increased to 637 (406) • Residential building rights portfolio 35,900 (36,400) • COVID-19 creates caution from customers Rörviksbacke, Årsta, Stockholm 129 residential units 5 Investor presentation / ytf 04/28/2020
Operating profit January – March According to segment reporting, SEK m 2020 2019 250 229 JM Residential Stockholm 166 180 JM Residential Sweden 51 98 JM International 3 6 JM Property Development 22 -189 JM Construction -9 -11 Group-wide expenses 483 313 Total Of which sale of properties 18 38 6 Investor presentation / ytf 04/28/2020
Stable development in the first quarter • The housing market in Stockholm continued to improve during most of the first quarter. • The rest of Sweden showed good profitability with good sales and level of housing starts in a market that continues to be stable. • Increased transaction volume and decreased supply of newly produced residential units in Sweden during the first quarter. • In Norway, activity level in the housing market was good with somewhat increased prices during the first quarter. The market has become more cautious towards the end of the quarter. In Finland, the housing market was stable until the COVID-19 problems were accentuated at the end of the quarter. • Customers on all markets have become more cautious since the end of March due to COVID-19. • The percentage of sold/reserved residential units in relation to ongoing production 69 % (61), with an interval of 60-65 percent considered normal. • JM’s strategy for bridging the acute COVID-19 period is to safeguard cash flows and production capacity. 7 Investor presentation / ytf 04/28/2020
Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q1 2011 – Q1 2020 SEK/sq.m. 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö Source: Mäklarstatistik and WSP 8 Investor presentation / ytf 04/28/2020
Higher level of residential units sold Number of units 1 800 1 600 1 400 1 200 1,120 1,084 1,015 917 1 000 851 800 695 882 841 600 829 673 734 376 400 576 200 376 347 300 244 243 238 186 158 117 119 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 JM Residential Stockholm JM International JM Residential Sweden JM Property Development Q1 Q2 - Q4 9 Investor presentation / ytf 04/28/2020
Higher level of housing starts Number of units 2 000 1 800 1 600 1 400 1 200 1,095 1,043 1,042 989 915 1 000 857 800 824 757 600 900 996 642 846 320 400 143 200 320 286 271 261 240 215 136 143 89 69 46 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 JM International JM Residential Stockholm JM Residential Sweden JM Property Development Q1 Q2 - Q4 10 Investor presentation / ytf 04/28/2020
Strandkanten, Masugnen B RO M M A , S TO C K H O L M Number of housing starts Q1 2020 70 Completed in 2022 11 Investor presentation / ytf 04/28/2020
Operan och Operetten M A L M Ö Number of housing starts Q1 2020 105 Completed in 2022 12 Investor presentation / ytf 04/28/2020
Entréen Urban LØ R E N S KO G , N O RG E Number of housing starts Q1 2020 94 Completed in 2021 13 Investor presentation / ytf 04/28/2020
Average number of housing starts per phase, units in apartment blocks Number 160 140 120 100 80 60 60 53 52 40 45 20 0 Stockholm Sweden International Average value, total 14 Investor presentation / ytf 04/28/2020
7,583 1) residential units in current production P E RC E N TAG E S O L D / R E S E RV E D I M P L I C AT E S N O R M A L R I S K I N C U R R E N T P RO D U C T I O N I N Q 1 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% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 JM Residential Stockholm JM Residential Sweden JM International Total Normal level sold/reserved (%) Percentage of sold/reserved in current production, Group (%) 1) Including 600 rental and residential care units within JM Property Development – not included in percentage sold/reserved 15 Investor presentation / ytf 04/28/2020
Residential units in current production J M G RO U P March 31 March 31 Dec 31 2020 2019 2019 Number of residential units 1) 7,583 7,842 7,813 Number of residential units sold 3,772 3,952 3,798 Number of residential units reserved 1,028 457 906 Sold residential units, % 54 55 53 Reserved residential units, % 15 6 12 Sold/reserved residential units, % 69 61 65 Completed production, no. of unsold units 2) 193 107 157 Number of unsold units in the balance sheet 108 89 82 1) Including rental and residential care units within JM Property Development – not included in percentage sold/reserved 600 593 600 2) After final occupancy according to plan 16 Investor presentation / ytf 04/28/2020
JM Residential Stockholm January - March Full Y ear SEK m 2020 2019 2019 Revenue 1,622 1,435 5,575 Operating profit 1) 250 229 916 Operating margin, % 15.4 16.0 16.4 Number of available building rights 12,900 13,400 12,800 Number of residential units in current production 3,035 3,042 3,171 1) Of which property sales - - - • The housing market continued to improve during most of the first quarter. Fredsborgsdalen, Österåker 34 townhouses The willingness to sign a contract early in the process was at a normal level • Positive sales development with 347 residential units sold in the first quarter compared to 238 residential units in the same period the previous year • Current projects with completion in 2020 have a high sales rate – supports profitability and cash flow • Cash flow is in balance taking into consideration the reduction in development properties • The market has become more cautious since the end of the quarter due to COVID-19 17 Investor presentation / ytf 04/28/2020
JM Residential Sweden January - March Full Y ear SEK m 2020 2019 2019 Revenue 1,050 1,110 4,468 Operating profit 1) 166 180 719 Operating margin, % 15.8 16.2 16.1 Number of available building rights 10,500 10,500 10,500 Number of residential units in current production 1,930 2,547 1,994 1) Of which property sales - - - • Stable demand with good sales • The willingness to sign a contract early in the process was at a normal level Tornträdgården 3, Uppsala 59 residential units • Good level of profitability • Current projects with completion in 2020 have a high sales rate – supports profitability and cash flow • Cash flow is burdened by a temporary increase in working capital • The market has become more cautious since the end of the quarter due to COVID-19 18 Investor presentation / ytf 04/28/2020
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