Interim report January September October 24, 2014

Transcription

1 Interim report January September 2014 October 24, 2014

2 JM Group Revenue: SEK 13.4 billion Total assets: SEK 11.1 billion No. of building rights: 28,400 No. of employees: 2,187 Market Cap: SEK 17.7 billion 2) 19 % Norway 78 % Sweden 1 % Finland 12-month period 2) SEK 233 per share Denmark 1 % Belgium 1 % ytf

3 Group Summary January September 2014 According to segment reporting Revenue increased to SEK 9,729m (9,054) Operating profit increased to SEK 1,171m (1,062) Operating margin amounted to 12.0 percent (11.7) SEK m % Gains from property sales SEK 23m (22) Jan-sep 2014 Operating profit Operating margin month period ytf

4 According to IFRIC 15 Group Summary January September 2014 Revenue increased to SEK 9,530m (8,712) Operating profit increased to SEK 1,201m (982) Profit before tax increased to SEK 1,149m (935) Earnings per share increased to SEK (8.80) Return on equity increased to 30.1 percent (22.7) ytf

5 Group Summary January September 2014 Number of residential units sold 2,277 (2,462) Number of housing starts 2,277 (2,072) Increased number of housing starts in Norway during the third quarter Cash flow from operations was SEK 639m (-76), investments in development properties and decreased holdings of unsold residential units Building rights portfolio 28,400 (27,700) ytf

6 Operating profit according to IFRIC 15 January - September Operating profit, SEK m JM Residential Stockholm JM Residential Sweden JM International JM Property Development JM Production Group-wide expenses Total as stated in segment reporting 1,171 1,062 Restatement JM International Total 1, Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting ytf

7 Good demand and higher level of housing starts Demand in Stockholm continued to improve and demand in the rest of Sweden developed favorably. Demand in Norway recovered during the nine-month period Demand in Stockholm strengthens the Group s operating margin The percentage of sold/reserved residential units in relation to ongoing production 77 % (72) high level ytf

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

9 Somewhat lower level of sold residential units Number of units , , JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1- Q ytf

10 Somewhat higher level of housing starts Number of units , , JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1- Q ytf

11 Fullriggaren Österåker, Stockholm No. of residential units, approx. 300 Housing starts Completed in 2016

12 Bellevue Park, Kviberg Gothenburg No. of residential units, approx. 500 Housing starts Completed in 2016

13 Hovinbekken II Oslo, Norway No. of residential units 196 Housing starts Completed in 2016

14 Average number of housing starts per phase Number Q Q Q Q Q Q Q Q Q Stockholm Sweden International Average value ytf

15 6,036 residential units in current production Number Percentage sold/reserved implicates low risk in current production in % 80% 60% 40% 20% Q4 Q Q Q4 JM Residential Stockholm Q Normal level sold/reserved Q Q4 Q JM Residential Sweden Q Q4 Q Q2 JM International Percentage of sold/reserved in current production, Group (%) 2014 Including 200 rental and residential care units within JM Property Development not included in percentage sold/reserved 0% Total ytf

16 Residential units in current production JM Group 30 sept sept dec 2013 Number of residential units 6,036 5,689 5,609 Number of residential units sold 3,337 3,025 2,858 Number of residential units reserved 1, Sold residential units, % Reserved residential units, % Sold/reserved residential units, % Completed production, number of unsold units 2) including on 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 ytf

17 JM Residential Stockholm January - September Full-year SEK m Revenue 3,944 3,779 5,254 Operating profit ,167 Operating margin, % Number of available building rights 11,000 11,000 11,200 Number of residential units in current production 3,030 2,475 2,516 Of which property sales Demand continued to improve High margin strong sales and large revaluation effect in completed projects The cash flow is burdened by investments in development properties ytf

18 JM Residential Sweden January - September Full-year SEK m Revenue 1,965 2,080 2,860 Operating profit Operating margin, % Number of available building rights 8,800 9,000 8,700 Number of residential units in current production 1,606 1,619 1,460 Of which property sales Demand developed favorably Stable margin Cash flow is strengthened due to decreased holdings of unsold residential units ytf

19 JM International January - September Full-year SEK m Revenue 2,111 1,944 2,745 Operating profit Operating margin, % Number of available building rights 7,600 7,100 7,100 Number of residential units in current production 1,200 1,287 1,325 Of which property sales Demand in Norway recovered during the nine-month period Increased number of housing starts in Norway during the third quarter Operating profit and margin burdened by negative results in Denmark and Finland Cash flow was limited by investments in development properties ytf

20 JM Property Development January - September Full-year SEK m Revenue Operating profit Number of available building rights 1, Number of residential units in current production Of which property sales Senior housing project with 54 units in Täby sold during the second quarter. Revenue and profit reported on an ongoing basis during rental units and residential care units in current production ytf

21 JM Production January - September Full-year SEK m Revenue 1,616 1,357 2,011 Operating profit Operating margin, % Of which internal Good demand Solid orders Increased revenue Stable margin ytf

22 Available building rights portfolio No. of building rights Region 09/30/ /30/2013 Stockholm 12,000 11,600 Malmö/Lund 3,700 3,800 Gothenburg 2) 2,100 2,000 Uppsala 3) 3,000 3,200 Norway 5,800 5,300 Copenhagen Helsinki Belgium Total approximately 28,400 27,700 Of which 1,000 and 600 building rights for rental units and residential care units 2) West region 3) East region ytf

23 Unchanged level of development properties Building rights in Balance Sheet SEK m Jan-Sep 2014 Opening balance 5,374 5,816 5,769 5,988 Plus 1,585 1,259 1, Minus -1,143-1,306-1, Closing balance 5,816 5,769 5,988 6, ytf

24 Approx. 5 years production in Balance Sheet No. of building rights 09/30/2014 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 7,400 1, JM Residential Sweden 5, JM International 4, JM Property Development Group 17,000 3, Residential building rights 2) 12-month period 3) Guideline value 5 years ytf

25 58 unsold residential units in the Balance Sheet, SEK 228m SEK m Q Q Q ytf

26 Cash flow Cash flow statement, SEK m 2013 Q Q Q From operating activities 2) From investing activities From financing activities Total cash flow for the quarter Cash and cash equivalents end of period 1,600 2,385 2,142 1,962 2,155 Of which net investment project properties ) Of which net investment development properties ytf

27 Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) SEK m times Equity/Assets ratio 40 percent (36) Available liquidity was SEK 4,955m (4,400) of which cash and cash equivalents SEK 2,155m (1,600) Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) Credit lines of SEK 2,400m have an average maturity of 1.4 years (1.8) sept Buy-back of own shares for SEK 125m during the third quarter Net interest-bearing liability(+)/receivable(-) Debt/equity ratio Non interest-bearing deferred payments for property acquisitions amounted to SEK 268m (552) ytf

28 Net financial items January September 2014, SEK m Financial income 22 Financial income 15 Revaluation/currency hedging 7 Financial expenses -74 Interest expenses -39 Revaluation/currency hedging -7 Interest expense pensions -28 Net financial items -52 Refers to claims on JM International ytf

29 Components of profit/loss housing business Percentage of completion method (gross) 2014 (Q2 2014) Cost-based effect SEK 199m (212) Revaluation effect SEK 271m (303) + + Sales effect SEK 15m (20) 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. Profit/loss for the period SEK 485m (535) Change in the relationship between stage of completion and sales rate in a period (incoming outgoing) (Adjustment of accumulated profit for unsold homes) ytf

30 Revaluation effects housing business SEK m 2013 Q Q Q Group Business segment Stockholm Sweden International Total Q The net of positive and negative revaluation effects in residential projects during 2014 totaled SEK 271m, which indicates a continued stable assessment of market conditions for the actual forecast period ytf

31 JM today Customer focused strong brand 28,400 building rights in attractive locations Some 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 Competent and engaged co-workers ytf