JM Group Real Estate & Construction Conference, September 20, 2018 Claes Magnus Åkesson, CFO

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1 JM Group January - June 2018 Real Estate & Construction Conference, September 20, 2018 Claes Magnus Åkesson, CFO

of employees: 2,591 20 % 3% Market Cap: SEK 13.

2 JM Group 1) Revenue: SEK 16.5 billion 2) Total assets: SEK 16.6 billion No. of building rights: 36,000 No. of employees: 2, % 3% Market Cap: SEK 13.1 billion 3) 77 % Norway Sweden Finland 1) According to segment reporting 2) 12-month period 3) SEK 188 per share, September 19,

3 Project development of JM Acquisition Management Occupancy Construction Concept phase Planning process Pre-construction Financing Sale/lease 3

Financial targets Targets 2017 2016 2015 2014 Operating

4 Dividend, share of profit after tax (%) 50 35 45 53 50

residential units 1) Sorgenfri, Malmö 57 residential

4 Financial targets Targets Operating margin (%) Dividend, share of profit after tax (%) Equity ratio (%) Nor, Täby Park, Täby 132 residential units 1) Sorgenfri, Malmö 57 residential units 1) Leidarkollen, Bergen, Norway 49 residential units 1) 1) Started during

5 Group Summary 1) January June 2018 Revenue decreased to SEK 8,179m (8,644) Operating profit decreased to SEK 1,032m (1,188) SEK m % Operating margin amounted to 12.6 percent (13.7) Gains from property sales SEK 11m (14) ) According to segment reporting July/June 2017/ ) 12-month period Operating profit Operating margin 1) 5

6) 2) Cash flow from operations was SEK -222m (1,294) 1) According to segment reporting 2) Of which SEK

6 Group Summary 1) January June 2018 Profit before tax decreased to SEK 997m (1,430) 2) Earnings per share were SEK (16.50) 2) Return on equity was 30.7 percent (41.6) 2) Cash flow from operations was SEK -222m (1,294) 1) According to segment reporting 2) Of which SEK 275m from the sale of participations in Småa AB in 2017 Entréen, Oslo, Norway 75 residential units Humlelunden, Staffanstorp 33 single-family home 6

Some stabilization during the second quarter Number of housing starts 1,417 (1,719) Planning to increase the number of housing starts during

7 Group Summary January June 2018 Number of residential units sold 1,099 (1,735) Lower level residential units sold cautious market in Stockholm, particularly new production. Some stabilization during the second quarter Number of housing starts 1,417 (1,719) Planning to increase the number of housing starts during the second six months in Stockholm, assuming stabilized housing market and stable planning processes Residential building rights portfolio 36,000 (34,600) Villa Nedergård, Gothenburg 28 residential units Radiotorget, Gothenburg 40 residential units 7

Operating profit January June According to segment reporting, SEK m 2018 2017 JM Residential Stockholm 524 710 JM Residential

8 Operating profit January June According to segment reporting, SEK m JM Residential Stockholm JM Residential Sweden JM International JM Property Development 1 24 JM Construction 0 19 Group-wide expenses Total

Some stabilization of the housing market in Stockholm stable development on other markets The housing market in Stockholm continued to be cautious during the first six months, particularly new

In the rest of Sweden demand was primarily stable In Norway, the level of activity was good with a slight increase in prices and the housing market in Finland was stable In Stockholm customers show

9 Some stabilization of the housing market in Stockholm stable development on other markets The housing market in Stockholm continued to be cautious during the first six months, particularly new production. Some stabilization in the second quarter. In the rest of Sweden demand was primarily stable In Norway, the level of activity was good with a slight increase in prices and the housing market in Finland was stable In Stockholm customers show strong interest in our projects, but are taking a cautious approach to signing contracts early in the process. However, willingness to sign a contract early in the process increased slightly during the second quarter The percentage of sold/reserved residential units in relation to ongoing production 58 % (75) somewhat below normal level A solid financial position gives good acquisition capacity and possibilities to enhance market position 9

10 Prices on the existing home market SEK/sq.m Tenant-owned apartment prices in cities, existing home market Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö Source: Mäklarstatistik and WSP 10

11 Number of units Lower level of residential units sold ,552 1,318 1,302 1, JM Residential Stockholm JM Residential Sweden JM International Q1 - Q3 - Q4 11

12 Number of units Lower level of housing starts 1,745 1,443 1,336 1,411 1, JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1 - Q3 - Q4 12

13 7,814 1) residential units in current production Percentage sold/reserved implicates normal risk in current production in 2018 Number % % % % % Q Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q % JM Residential Stockholm Normal level sold/reserved JM Residential Sweden JM International Total Percentage of sold/reserved in current production, Group (%) 1) Including 681 rental and residential care units within JM Property Development not included in percentage sold/reserved 13

14 Residential units in current production JM Group 30 June June Dec 2017 Number of residential units 1) 7,814 7,641 8,200 Number of residential units sold 3,718 4,720 4,466 Number of residential units reserved Sold residential units, % Reserved residential units, % Sold/reserved residential units, % Completed production, no. of unsold units 2) Number of unsold units in the balance sheet ) Including rental and residential care units within JM Property Development not included in percentage sold/reserved ) After final occupancy according to plan 14

Gothenburg 3) 3,700 3,200 Uppsala 4) 3,700 3,200 Norway 7,900 7,800 Helsinki 3,300 2,700 Belgium 200 200

15 Available building rights portfolio No. of building rights 1) Region 06/30/ /30/2017 Stockholm 14,300 2) 13,900 2) Malmö/Lund 2,900 3,600 Gothenburg 3) 3,700 3,200 Uppsala 4) 3,700 3,200 Norway 7,900 7,800 Helsinki 3,300 2,700 Belgium Total 36,000 34,600 1) Rounded to the nearest hundred 2) Of which 700 and 900 building rights for rental units and residential care units 3) West region 4) East region 15

16 Increased level of development properties Building rights in Balance Sheet Jan-Jun SEK m Opening balance 6,802 7,067 7,121 7,543 Plus 2,695 1,903 2,017 2,057 Minus -2,430-1,849-1, Closing balance 7,067 7,121 7,543 8,869 16

17 Approx. 6 years production in Balance Sheet No. of building rights 1) 06/30/2018 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 8,100 1, JM Residential Sweden 6,400 1, JM International 5, JM Property Development Group 20,400 3, ) Residential building rights 2) 12-month period 3) Guideline value 5 years 17

18 79 unsold residential units in Balance Sheet, SEK 322m SEK m Q Q Q

19 Cash flow statement, SEK m Cash flow 2017 Q Q Q From operating activities 1) 2) 3) From investing activities From financing activities Total cash flow for the quarter Cash and cash equivalents end of period 2,211 2,557 2,572 2,564 2,078 1) Of which net investment project properties ) Of which net investment development properties ) Of which paid tax According to segment reporting

20 Strong financial position and liquidity SEK m Net interest-bearing liability(+)/receivable(-) 1) times 1,5 1 Equity/Assets ratio 1) 38 percent (39) Available liquidity was SEK 4,878m (5,011) of which cash and cash equivalents SEK 2,078m (2,211) ,5 Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) 0 0 Credit lines of SEK 2,400m have an average maturity of 3.5 years (2.0) , June 2) 2018 Net interest-bearing liability(+)/receivable(-) Debt/equity ratio 1) According to segment reporting 2) Non interest-bearing deferred payments for property acquisitions amounted to SEK 1,405m (497) 20

21 Components of profit/loss housing business Percentage of completion method (gross) 2018 (Q1 2018) Cost-based effect SEK 420m (440) Revaluation effect SEK 470m (439) + + Sales effect SEK -136m (-129) Always positive Usually positive Positive/negative Recognized expenses contribution margin (for the current period). Changed assessment about forecast total contribution margin and/or total cost of a project that involves revaluation of recognized profit/loss from earlier periods. Change in the relationship between stage of completion and sales rate in a period (incoming outgoing) (Adjustment of accumulated profit for unsold homes). = Profit/loss for the period SEK 754m (750) 21

22 Revaluation effects housing business SEKm 2017 Q Q Q Group Business segment Stockholm Sweden International Total Q The net of positive and negative revaluation effects in residential projects during 2018 totaled SEK 470m, with current assessment of market conditions for the actual forecast period. 22

23 JM today Customer focused strong brand 36,000 building rights in attractive locations Fundamentally favorable prospects Cautious market in Stockholm Sustainable urban planning Efficient management system Investments in digital support Strong balance sheet offers freedom of action Well balanced risk profile Nor, Täby Park, Täby 23

24 Press- och analytikerpresentation //ytf

Interim Report January - June 2018

Interim Report January - June 2018 JM Group 1) Revenue: SEK 16.5 billion 2) Total assets: SEK 16.6 billion No. of building rights: 36,000 No. of employees: 2,591 20 % 3% Market Cap: SEK 11.9 billion 3)