JM — Annual Report 2008

Apr 2, 2009

JM develops new residential areas in attractive locations for people who demand high standards in their living environment. Our work is characterised by a holistic approach and attention to detail — we want to take lasting pride in the homes and residential areas we develop.

JM is one of the leading developers of housing and residential areas in the Nordic region. Operations focus on new production of homes in attractive locations, with the main focus on expanding metropolitan areas and university towns in Sweden, Norway, Denmark, Finland and Belgium.

We are also involved in project development of commercial premises and contract work, primarily in the Greater Stockholm area. JM seeks to promote longterm quality and environmental considerations in all its operations. Annual sales total approximately SEK 12 billion and the company has some 2,000 employees.

JM is a public limited company listed on the OMX Nordic Exchange in the Large Cap segment.

Business concept

To create attractive living and working environments that satisfy individual needs both today and in the future.

Vision

JM creates houses where people feel at home.

Objective for shareholder value

The goal is to give shareholders a higher total return, total of dividend and increased value, than shareholders in companies with a similar risk profi le and business activities.

Contents

• JM IN BRIEF
• 1 THE YEAR IN BRIEF
• 2 CEO'S COMMENTS
• 4 BUSINESS CONCEPT, GOALS AND STRATEGIES
• 6 JM'S CORE BUSINESS
• 8 MARKET OVERVIEW
• 16 RESIDENTIAL BUILDING RIGHTS
• 18 PROJECT PROPERTIES
• 19 BUSINESS SEGMENTS
• 24 CUSTOMERS
• 28 SUSTAINABLE URBAN PLANNING
• 33 EMPLOYEES
• 37 RISKS AND RISK MANAGEMENT

FINANCIAL REPORTS

• 41 BOARD OF DIRECTORS' REPORT GROUP:
• 45 INCOME STATEMENT
• 46 BALANCE SHEET
• 48 CASH FLOW STATEMENT
• 50 CHANGES IN SHAREHOLDERS' EQUITY
• 51 NOTES TO THE FINANCIAL STATEMENTS PARENT COMPANY:
• 67 INCOME STATEMENT AND CASH FLOW STATEMENT
• 68 BALANCE SHEET
• 69 CHANGES IN SHAREHOLDERS' EQUITY
• 69 NOTES TO THE FINANCIAL STATEMENTS
• 72 FIVE-YEAR OVERVIEW—GROUP
• 74 QUARTERLY OVERVIEW—GROUP
• 75 QUARTERLY OVERVIEW—BUSINESS SEGMENTS
• 76 PROPOSED DISPOSITION OF EARNINGS
• 77 AUDITORS' REPORT
• 78 DEFINITIONS AND GLOSSARY

SHAREHOLDER INFORMATION

• 80 CORPORATE GOVERNANCE REPORT
• 86 BOARD OF DIRECTORS AND AUDITORS
• 87 EXECUTIVE MANAGEMENT
• 88 THE JM SHARE
• 90 NOTICE OF ANNUAL GENERAL MEETING AND FINANCIAL CALENDAR
• 91 JM'S PROPERTIES
• 96 ADDRESSES

downturn, certain demand drivers developed in a positive direction in Sweden.

24 At mobil.jm.se visitors kan view JM homes directly

on their mobile phones.

2

28 Low-energy houses in all housing production in Sweden.

Cover photo: Buying a JM home should be as simple, secure and convenient as living in one. You'll have time left over for other things.

"We see continued strong interest in our projects in Sweden."

Johan Skoglund, President and CEO

Continued cautious demand and declining production

• Income fell by 4 percent to SEK 12,229m (12,731) and number of residential units sold dropped to 1,871 (3,880)
• Earnings before tax declined to SEK 1,052m (2,297) and net profit for the year decreased to SEK 818m (1,665). Writedowns of SEK 320m (0) for development properties were charged against operating profit. Operating margin decreased to 8.9 percent (18.1)
• Property sales of SEK 748m (653) provided capital gains of SEK 73m (182)
• Return on equity for the past twelve months was 22.9 percent (44.5). Earnings per share for the year totaled SEK 9.50 (18.30)
• Consolidated cash flow including net investment in properties was SEK 101m (1,826) after a strong cash flow during the fourth quarter
• The Board of Directors proposes SEK 0 (5.50) in dividend for 2008 while awaiting a normalized supply of liquidity from the banking system for new projects to be started.

SEKm	2008	2007
Income	12,229	12,731
Operating profit	1,083	2,301
Profit before tax	1,052	2,297
Cash flow from operating activities	101	1,826
Operating margin (%)	8.9	18.1
Return on equity (%)	22.9	44.5
Equity/assets ratio (%)	32	39
Earnings per share (SEK)	9.50	18.30
Number of housing starts	1,829	4,065
Number of residential units sold	1,871	3,880

For definitions, see page 78.

OPERATING PROFIT BY BUSINESS SEGMENT, SEKm

Turbulent 2008

When we look back at 2008, it is the recession and financial crisis that mainly affected sales and earnings. After several years of good sales, we noted declining demand and lower prices for residential units in the six-month report, and during the autumn the economy worsened, augmented by the financial crisis. The slowdown in the economy was dramatic at the end of the year, even by historical measures.

Construction activity was adversely affected and the number of housing starts in Sweden declined by over 20 percent during the year to about 21,700. During this period the JM Group began construction on about 1,800 residential units, down from previous levels of about 4,000 — an adjustment in response to the sharp drop in demand.

CHANGED CONDITIONS

For anyone about to invest in a new home in the autumn of 2008, the tightening of credit in the financial sector was quickly felt and uncertainties with respect to pricing increased. Uncertainty was also substantial with respect to the private economy and customers became more cautious in general.

JM always works based on the strategy that there must be a clear demand for planned residential projects. Consequently, during the autumn we adapted production by starting smaller stages, or by postponing startup of certain new projects, and by adapting prices to the current market. These measures were not sufficient; we were also forced to downsize the organization and therefore at the end of the year we announced cutbacks of about 600 employees, which have now unfortunately resulted in layoffs.

The substantial interest rate cuts and economic stimulus package from the political system begin to have an impact on the Swedish market, which to some extent have already calmed general concerns. However, it is difficult to evaluate how deep or long the recession will be.

MEASURES TO DEAL WITH THE ECONOMY

As the economy rapidly deteriorated, we have taken several measures:

• Adaptation of the organization
• Sharp reduction of capacity, primarily in foreign operations
• Adaptation of projects in terms of costs
• Building rights are also being used for production of rental housing for external parties
• Continuous fine-tuning of the building rights portfolio to be ready for improved demand in the future
• Extended security package launched for our home buyers
• Priority given to safeguarding the balance sheet and freeing up cash flow — restrictive approach to new acquisitions.

In 2008 we saw record-breaking population growth in the Stockholm region, JM's largest market, and if this trend continues demand for newly built homes should increase relatively quickly in the region once the economy turns around. When we implemented the staff cuts it was important to make a large enough adjustment to staffing, at the same time that we had to retain expertise in housing construction in order to continue to develop projects in the best locations. I am mainly thinking of Stockholm, with projects like Dalénum on Lidingö and Kvarnholmen in Nacka, as well as projects in Malmö and the Oslo area.

In several projects we built fewer apartments per stage than originally planned. In certain markets smaller homes are in demand and we are also considering solutions with a more economical standard. JM is currently dedicating considerable time to concept design in projects that we will start once the economy rebounds.

We are also considering opportunities, in these turbulent times, to build more leasehold projects, more senior housing and assisted living housing. I also believe that we can increase the percentage of contract work if demand continues to be strong in this market. The purpose of all of these measures is to retain our expertise during the current weaker economy.

JM has consistently — during both boom and recession — concentrated on and carried out residential projects. Through our long-term involvement on the local market, JM and our subsidiaries have created trusting relationships with representatives of the local authorities. In December, we sold four properties in Stockholm — residential projects consisting of a total of 371 apartments to the public housing company Stockholmshem. It is gratifying to be able to contribute JM's know-how about housing construction to Stockholmshem's ambitious initiative to create more leasehold apartments in Stockholm.

BUILDING RIGHTS PORTFOLIO

The portfolio of development land is one of JM's most important assets. We are constantly investing in land for development for future housing construction and at year-end 2008 we had what may be the best mix ever, with 31,000 building rights, many in attractive locations in Stockholm.

In the current recession, with weak demand and a low implementation rate in the projects, we actually have more than enough building rights for our needs and therefore we will be restrictive about new acquisitions. However, it is pivotal for JM to have good projects to work with in the future.

UNCHANGED STRATEGY

JM will be the leading project developer of high-quality housing in the Nordic region. This strategic focus remains unchanged, but after having had low demand in Denmark and Finland for the past few years, we are now establishing a winter survival strategy in these countries. This means that we will be extremely restrictive with housing starts in 2009 on these markets and focus on selling residential units in current projects.

COOPERATIVE DEVELOPMENT WITH SUPPLIERS

For several years JM has been working with industrial processes and production methods in residential development projects. The purpose is to streamline production, but these measures also result in savings because purchasing in volume essentially steers choices towards fewer and more standard components.

When JM signs strategic agreements, although price is important, total cost and quality are the deciding factors when choosing suppliers. For example, the product must be a good environmental choice, it has to be appropriately packaged and delivered to our workplaces and the supplier must have good delivery capacity and aftermarket service and maintenance. One of JM's core values is having a long-term approach, which is also reflected in our collaboration with strategic suppliers. JM is a preferred customer and as such we also cooperate with our suppliers on development, which in the final analysis benefits both JM, suppliers and home buyers — with respect to both price and quality.

In 2008 we continued to work on our platforms and modules. For example, we signed agreements for prefabricated concrete frame. JM will now only use two frame systems for apartment blocks in residential development projects in Sweden. Either the current frame system, with on-site construction built with our own production resources according to JM's pre-construction procedures, or the prefabricated frame from external suppliers.

ECO-COMPLIANT HOMES

JM will continue to build high-quality and eco-compliant homes and workplaces, with high customer value. For years, JM's most important environmental objective has been to reduce energy consumption in order to minimize the contribution to the climate change.

During the year we began to build the first low-energy houses that will be standard in all of JM's housing production in Sweden. These houses have very good insulation in walls and energy efficient windows, and they also have a more effective air ceiling. All houses have heat recovery systems and all apartments have individual hot water meters, which make it easier for residents to control their energy consumption.

A SECURE PROCESS

We have built under the strong JM brand for the more than 60 years that we've worked with residential development projects. It is essential to be able to offer a secure process, from planning and production through the first display to occupancy. Beginning in January 2009, we expanded our security package in Sweden so that it also provides dual residence insurance and access protection. We have already noticed that the expanded security package, together with the interest rate cuts, have provided the customer with the extra security needed to take the step from registration of interest to actual purchase of a new home. In the "Customers" section we discuss the advantages of buying a newly built home and the security package in greater detail.

GOOD FUNDAMENTALS

Demand for our housing has weakened in all of JM's markets, but we see continued great interest in our projects in Sweden. For JM's business, it is crucial that the banking system have the ability to provide customers and production with cost-effective financing. Then it is up to JM to continue to develop attractive homes that customers want and to excel at project development and cost effectiveness.

JM continues to have a strong balance sheet and a good longterm earning capacity, but the Board of Directors still proposes that no dividend be paid for 2008. The supply of liquidity from the banking system for startup of new projects must normalize before it can be considered fundamentally sound to strip liquidity from the company.

In the long term, fundamentals continue to be good for our business. At the same time we are dynamically positioned with financial strength and an excellent project portfolio that continues to be refined to be ready when demand improves.

Stockholm, March 2009 Stockholm,March

Johan Skoglund

Nordic Region's leading developer

BUSINESS CONCEPT

To create attractive living and working environments that satisfy individual needs both today and in the future.

The business concept means that JM is a project developer of housing and, selectively, of commercial premises. JM gives priority to high quality and a holistic approach in its design. The aim is to create living and working environments that will remain attractive over time.

VISION

JM creates houses where people feel at home.

According to this vision, people will be just as content living in their JM homes in the distant future as they are today.

OBJECTIVE FOR SHAREHOLDER VALUE

The goal is to give shareholders a higher total return, total of dividend and increased value, than shareholders in companies with a similar risk profile and business activities.

STRATEGY

In order to achieve its vision and meet its shareholder value objective within the framework of its business concept, JM has the following strategies:

JM shall be the leading project developer of high-quality residential projects in the Nordic countries. "Leading" refers to market position in JM's markets as well as the quality of our product. Development of housing will be made in growth areas with good demographic and socioeconomic conditions over time. A growing population and a good purchasing power trend increase the potential for success in JM's business.

The focus must be clearly on high quality and eco-compliant homes and workplaces with a high customer value and in attractive locations. This presumes constant awareness and understanding of the needs and priorities of our customers. Homes will mainly be sold for private ownership, but may also include rentals. Project development of commercial properties will be limited and primarily support housing development in large projects, where offices may be a natural planning pre requisite.

Continued volume growth will be generated both organically and through acquisitions, with the priority of strengthening the Group's position in existing markets. Growth will be achieved subject to good profitability and a market-leading position. International growth will be approached with caution, while paying attention to the importance of managing the operational risk in JM's capital-intensive business.

Production starts will take place in response to guaranteed demand as well as quality assured pre-construction and production. Compliance with JM's "decision gates" is a central requireDIVIDEND TARGET—The average dividend over a business cycle should correspond to 50 percent of consolidated profit after tax.

MARGIN TARGET— Operating margin should amount to 10 per cent, including gains from property sales of 1–2 percentage points.

EQUITY RATIO TARGET—The visible equity ratio should amount to 35 percent over a business cycle. To the extent the visible equity ratio and interest coverage are assessed as exceeding the optimal capital structure on a continuing basis, capital will be transferred to shareholders in a form that is appropriate at the time.

KEY FIGURES
%	Goal	2006	2007	2008
Dividend 1), share of profit
after tax	50	27	30	0 2)
Operating margin	10	15.6	18.1	8.9
Equity/assets ratio	35	43	39	32
1) Not including redemption program.

2) Proposed by the Board.

ment, including an adequate percentage of reservations and signed contracts for residential units before starting production. JM will maintain a limited, but efficient production capacity to hedge production costs for the long-term. However, the company's own efficiency must always be examined in relation to costs of external production resources.

JM will focus on cash flows and effective utilization of the balance sheet. This will be achieved by maintaining a high rate of startups, implementation and sales of property projects.

ASSETS AND CAPITAL STRUCTURE

JM's ambition is to maintain an optimal composition of assets and capital structure over time, suitable for the company's project development activities.

The building rights portfolio will be optimized continuously with regard to demand, planned production and tied-up capital. Normally, the balance sheet should contain development properties corresponding to about four years' production expressed in number of building rights.

The balance sheet item project properties will entirely comprise project assets and mainly consist of residential properties for project development, in the form of conversion to tenantowned apartments or densification. JM aims to ensure that no fully developed commercial properties remain on the balance sheet; these should be sold following completion.

Because of the cyclical nature of commercial project development and a varying supply of residential properties for sale, the item project properties can vary in size.

Bolinder Strand in Järfälla north of Stockholm.

The equity ratio target is a simplified consequence of a more extensive analysis where shareholders' equity has been allocated to the balance sheet's different asset classes and types of operations, taking assessed operating risk into account.

With the existing focus of operations and structure of working capital, JM's tenant-owned unit business is assessed to have an average net debt over time of zero. However, the internal relationship between the Group's different business risks and asset classes means that an optimized debt/equity ratio for the Group can vary. Moreover, capital structure planning also includes longterm considerations other than a pure model-based calculation of an optimal capital structure.

REQUIRED RATE OF RETURN

In order to generate the highest possible shareholder value, JM must have good knowledge of which investments are profitable and achieve the Group's required rate of return. Every investment in a project must therefore generate a return that covers its cost of capital. The investment's cash flow is calculated and discounted on the basis of a required rate of return.

COST OF CAPITAL, SHAREHOLDERS' EQUITY

• Risk-free return current assessment of sustainable return on ten-year government bonds is about 4 to 5 percent
• Risk premium for the risk the investor takes when investing in JM shares, the risk premium is estimated at 5 percent
• Required rate of return on shareholder's equity (risk-free return plus risk premium) is therefore 9 to 10 percent.

COST OF CAPITAL, BORROWED CAPITAL

• Risk-free return current assessment of sustainable return on government bonds with a maturity of 2 years, corresponding with an average project time, amounts to 3.5 to 4.5 percent
• Risk premium paid on loan financing is assumed to be an average of 1 percent
• Tax deduction since interest expenses reduce the profit on which tax is paid, the actual cost is lower; with corporate tax at 26.3 percent the interest expense after tax is reduced by 26.3 percent to 3.2 to 4.0 percent.

CAPITAL STRUCTURE

• Debt/equity ratio — JM's target for the debt/equity ratio in the individual projects is to reach an average of 1.0.

New projects' weighted average cost of capital (WACC) therefore amounts to 6.1 to 7.0 percent. This means that the Group's average investments must generate a cash flow after payment of all operating costs and tax, but before interest expense, of 6.1 to 7.0 percent of the basic investment in order to be profitable.

Value Generation through Project Development

Project development means acquiring vacant or built land. These properties are transformed through new construction or renovation into attractive housing, sometimes into new residential areas, or commercial premises.

HOUSING

JM is one of the Nordic region's leading developers of housing. Operations focus on new production of homes, with the main focus on expanding metropolitan areas and university towns in Sweden, Norway, Denmark, Finland and Belgium. Project development at JM covers every link in the value chain, from acquisition of land to the sale of the new home. In many cases JM's projects mean creating new residential areas.

JM'S COMPETITIVE ADVANTAGES

Successful project development presumes knowledge and

experience of land and property acquisitions, pre-construction and planning processes, as well as production, sales and management. JM has extensive experience in mastering this holistic approach in a way that generates value, particularly through our close relations with our end customers. The projects are often large and complex, such as Järvastaden, Sweden's largest residential housing project in Solna, north of Stockholm. Other major projects right now are Liljeholmen in Stockholm, the Eriksberg area in Göteborg and the Dockan area in Malmö, which are being converted into new neighborhoods. JM has worked with residential project development for more than 60 years and is a leader in customer focus and quality and environmental issues.

COMMON WORKING METHOD

JM works with a comprehensive management system, specially designed to ensure a common working method in all JM projects, which also facilitates efficient control and oversight. The common working method is based on continuous improvement and regular feedback. The system includes central pre-construction decisions in project development. JM's most qualified pre-construction managers, project managers and craftsmen have formulated pre-construction procedures, based on proven and costeffective working methods and material choices. This operations system documents processes and established business-critical requirements.

PROJECT DEVELOPMENT PHASES

JM's projects usually start with an acquisition of land. JM conducts market surveys regularly to analyze customer preferences with regard to type of housing, design and location.

The process from buying the land until the new homes are ready for occupancy always takes several years and begins with a dialogue and collaboration with the involved municipality to determine how the land can be used. Next follows a pre-construction phase in which architects and other consultants are involved. Sales begin and once home buyers have reserved a certain percentage of planned residential units, construction can begin. JM remains involved for approximately two years after occupancy.

GROWTH IN VALUE

The land acquisition and concept phases are extremely important in project development. Finding land that can be developed for the right price and developing housing that appeal to home buyers are crucial for profitable project development.

Value generation is at its greatest during the planning process, when JM works with the involved municipality to define land use. In this phase the raw land is converted into building rights. Value grows step by step, as land use is defined. Full land value is attained when the detailed plan becomes legally binding and building permits are obtained — a process that can take from one to five years — and the project has been sold to buyers. Property owners can influence the planning process, but it also depends on the municipal planning process and any appeals.

In addition to acquiring raw land, JM also acquires developed properties that can be further developed into attractive homes or modern offices. Here JM creates growth in value through densification, conversion of leasehold into tenant-owned apartments, planned demolition, or conversion and extension.

COMMERCIAL PREMISES

Most of JM's operations involve residential units, but JM also develops commercial premises. Because economic developments have a greater effect on project development of commercial premises than on residential development projects, they are more cyclical in nature.

Attractive locations as well as modern, flexible and effective offices are factors for success when developing commercial projects.

Project development involving commercial premises mainly takes place in the Stockholm region, primarily to support residential development projects. An area under development may need both residential and commercial buildings in order to create an attractive neighborhood. Older residential areas can be densified with homes and associated commercial centers can be modernized.

Developing rental housing is included in JM's commercial operations. When project development is completed, JM usually sells the building or use the fully developed property to trade for new building rights or project properties.

CASH FLOW MANAGEMENT

Efficient cash flow management is essential because of the longterm nature of JM's projects. JM's control systems and processes

Essinge Udde on Lilla Essingen; what looked like a gravel pit in 2002 …

… is now one of Stockholm's most attractive neighborhoods.

are structured to support and stimulate an optimal cash flow approach in all project phases and thus achieve maximized value development in the Group. Decisions concerning acquisitions and starting production are crucial business decisions that have a major impact on cash flow and therefore undergo special scrutiny and evaluation.

Land that JM acquires is first reported on the balance sheet as development property. When production begins for each respective project phase, the carrying amount of the property is transferred to the project and included among the project's other production costs. At the same time land ownership is transferred through a sale to a newly formed tenant-owner association, which is invoiced regularly while the project is underway according to an agreed payment plan. The association finances the land acquisition and the construction work with a building loan from the banking system.

Economic slowdown

ECONOMIC SLOWDOWN, BUT GOOD LONG-TERM PROSPECTS

JM's housing production is mainly concentrated to metropolitan and growth areas in Sweden, Norway, Denmark and Finland. During 2008 JM started production of more than 1,800 residential units. In Sweden, the number of housing starts totaled 1,570, of which 92 percent were units in apartment blocks and 8 percent single-family homes. The other countries had a total of 259 housing starts, 83 percent of which were apartments and 17 percent single-family homes.

DEMAND DRIVERS MOVING IN A POSITIVE DIRECTION

The demand for housing weakened in 2008 in all of JM's markets. However, in the Stockholm region, which accounts for about 50 percent of JM's revenues, some stabilization of demand was noted in the most attractive areas at the end of the year.

Despite the increased interest in JM's new residential projects in Sweden, the financial turmoil and liquidity problems in the Swedish banking system combined with the economic downturn caused customers to continue to be cautious about buying a new home. The Swedish Riksbank's interest rate cuts in the late fall did not have time to have an impact on the housing market prior to the end of the year.

Despite the economic downturn, certain demand drivers developed in a positive direction in Sweden in 2008, such as the continued rise in household disposable income. However, general concern for more layoffs and rising unemployment had a negative effect on people's willingness to buy a new home.

Both net inward migration and net population growth were large from a historical perspective in Sweden's metropolitan areas during the year. The Stockholm region grew in 2008 by more than 36,000 inhabitants, both through increased inward migration and an extremely high birth rate. The Malmö region is still the region in Sweden that is growing most, with an increase of more than 14,000 inhabitants in 2008. Even the Göteborg region grew in 2008.

At the same time that Sweden's urban regions are growing more than ever, housing construction is extremely low. Over the past ten years, in relative terms Sweden has built the fewest homes in Europe. In the other Nordic countries, twice as many homes are built as in Sweden, in relative terms. Demand for housing in Sweden's urban areas is therefore strong. All municipalities in the counties with large metropolitan areas mention a housing shortage in their reports to the Swedish National Board of Housing, Building and Planning which they expect to continue. (Source: Tyréns Temaplan)

PRICE TREND IN JM'S MARKETS

Housing prices fell throughout the Nordic region in 2008, mainly due to the uncertainties in the financial sector. In Sweden the declining prices became reality in the second half of the year; up until early summer an upswing in prices could be noted, but by the end of 2008 prices were lower than at the end of 2007.

Prices in the existing		Price trend, percent	Price trend, percent
home market	Housing type	2008	2007
Stockholm, inner city	Tenant-owned apartments	–8	12
Municipality of Stockholm	Tenant-owned apartments	–13	6
Malmö municipality	Tenant-owned apartments	–12	0
Göteborgs municipality	Tenant-owned apartments	–3	7
Copenhagen municipality	Freehold apartments	–13	–16
Oslo municipality	Freehold apartments	–9	0
Helsinki region	Tenant-owned apartments	–4	6
			Source: Tyréns Temaplan

HOUSING CONSTRUCTION 2008

The number of housing starts declined in 2008 in all of JM's markets.

During the year construction began on a total of 21,700 new residential units in Sweden, a decrease of more than 20 percent compared with 2007 (28,300).

In Norway production began on 25,300 new residential units (December 2007 to November 2008), a decrease of about 25 percent compared with the previous twelve-month period (34,200).

Housing construction in Sweden over the past 50 years

The negative trend in Denmark also continued, with fewer housing starts in 2008. During the year construction began on 12,400 residential units, almost 50 percent fewer than in 2007 (22,300).

In Finland production began on 20,800 new residential units (October 2007 to September 2008), down about 20 percent from the same period the previous year. (Source: Tyréns Temaplan)

Assessed market position in 2008, residential housing market, in cities where JM has operations
Market	JM's market position	Major competitors
Sweden	1	NCC, Peab, Skanska and HSB
Norway	Among the top 5	Veidekke, Skanska, Block Watne and Peab
Denmark *	Among the top 5	Sjaelsø Gruppen, Nordicom, Kuben, Arkitekt gruppen and NCC
Belgium **	Among the top 10	CIB, Thomas Piron, Soficom, Besix, BPI/CFE Atenor and Matexi
Finland	***	YIT, Skanska, NCC, WO, Sato and Palmberg
* Copenhagen region ** Brussels, Namur and Brabant Wallon region

*** Operations began in the Helsinki area in 2007

JM's largest segments are the metropolitan areas of Stockholm, Göteborg and the Malmö/Lund, as well as the Oslo area. Housing production is also carried out in Belgium and since 2007 in Finland.

STOCKHOLM

JM is the market leader in new production of tenant-owned apartments in Greater Stockholm, with ongoing projects in several municipalities in the county.

Even though the region developed positively in 2008, with an extremely strong increase in the population, increased revenues and strong employment, interest in housing development projects declined and housing prices fell.

Some of JM's large projects in the region include Långbro, Liljeholmen/Årstadal, Kojan/western Kungsholmen, Fågelviken/ Örnsberg, Järvastaden/Solna/Sundbyberg, Norra Frösunda/Solna and Hägernäs/Täby.

GÖTEBORG REGION

The Göteborg region is the urban area in Sweden that has been affected most negatively by the economic downturn. Demand on

Net migration Sweden's metropolitan regions 1980–2008

Relative net migration refers to population growth due to relocation (inward migration minus outward migration) in relation to the size of the region. Stockholm is twice as large as the other regions, so these figures are calculated in relative terms.

Ten per thousand refers to population growth of 1 percent only as a result of relocation during the year.

the housing market was extremely weak in Greater Göteborg in 2008, which at the end of the year resulted in a decision to reduce capacity for JM's operations in the region.

JM's larger projects in the region include the former harbor area at Norra Älvstranden in Göteborg, where JM is building in Sannegårdshamnen and the Juvel area. Outside Göteborg JM has large projects in Kungsbacka and Kungälv.

MALMÖ REGION

The Malmö region is the Swedish metropolitan area which in recent years has seen the largest increase in prices (in terms of percent) in the housing market. The falling housing prices in 2008 can therefore be seen as a return to more reasonable price levels. The region continues to have strong prospects for developing in a positive direction, with a differentiated industrial structure and positive performance in several growth industries.

The largest JM projects in the Malmö region can be found in the former harbor areas: the Dockan area in Malmö and Lomma Hamn outside Malmö.

Apartment prices in Oslo, Copenhagen and Helsinki over the past 10 years

DENMARK

JM focuses its operations in Denmark on the Copenhagen area. Financial participants also build housing in Denmark, where the possibility of buying homes for rental purposes creates an investment market. Consequently the Danish housing market is more affected by the international financial turmoil. Because of extremely low demand for housing in the region since the middle of 2006, in 2008 JM decided to adopt a winter survival strategy for the operation in the Copenhagen area.

One of JM's largest projects in the region is Islands Brygge.

NORWAY

Although Norway has also been affected by the global financial uncertainty, it is the economically strongest country in Europe during the year. However, demand for newly built homes slowed during the autumn of 2007 and dropped during autumn 2008.

Through its subsidiary JM Byggholt AS, JM is one of Norway's top five residential builders with respect to production of apartments. JM Byggholt has operations in the Oslo region, Vestfold, Grenland, Bergen and Stavanger. In Oslo, extensive new construction is being planned and executed in the harbor area around the city in locations such as Tjuvholmen and Bjørvika.

Some of the larger projects include Waldemars Hage in Oslo, Bragenes Strand in Drammen and Stongafjellet outside Bergen.

BELGIUM

JM is developing residential units in the Brussels region and in the province of Brabant Wallon. Customers are mainly private individuals, but also include Belgian and international companies and institutions. Customers invest in housing primarily for personal use, but also as rental properties. JM is one of the top ten builders in the Brussels region.

FINLAND

In Finland factors such as declining exports resulted in a weakening of the labor market, with rising unemployment and a decrease in household consumption growth in 2008. In addition, demand for housing was relatively low in the Helsinki region. Consequently, in 2008 JM decided to adopt a winter survival strategy for the operation.

JM became established in the region in 2007 and is active in the Helsinki area. In 2008 JM built a single-family home neighborhood in Kerava.

Breakdown of sales starts, JM's tenant-owned apartments

Breakdown of sales starts, JM's tenant-owned apartments by size band, 2004–2008, Sweden

Breakdown of sales starts JM's ownership rights (single-family home)

Breakdown of sales starts, JM's ownership rights (single-family home) by size band, 2004–2008, Sweden %

Liljeholmskajen j j

A new part of Stockholm's inner city

Liljeholmskajen is coming to life as its new residents move in. Cafés, restaurants and shops are gradually opening around the new homes. The urban lifestyle in the natural environment achieves an unusually fine balance. The traditional neighborhood, "Söder" and the rest of downtown Stockholm are just on the other side of the Liljeholmsbron bridge. Stockholm's waterways — Årstaviken, lake Trekanten, and Mälaren by Vinterviken — offer fantastic year round recreation opportunities.

Location: Stockholm	Remaining number of building
Development period: 2001–2016	rights: approx. 1,600
Housing type: Apartment blocks	Location: Central
Number of residential units:	Communications: Subway, bus
– Total: approx. 3 ,000	Distance to downtown Stockholm:
– Started: 1,463	5 km
– Housing starts in 2008: 181
Apartment sizes: 45–118 m2 ,
2–5 rooms and kitchen

Långbro g

A new neighborhood in Långbro Park

Långbro Park is located in Älvsjö, southwest of downtown Stockholm. A careful but extensive renewal project is in progress to preserve and improve existing turn of the century buildings and the classic park. The park features a tavern, a school, gym facilities with a swimming pool and the beautiful pond.

Location: Stockholm	Remaining number of building
Development period: 2000–2013	rights: 319
Housing type: Apartment blocks	Location: Park setting
Number of residential units:	Communications: Subway,
– Total: approx. 900	commuter train
– Started: 593	Distance to downtown Stockholm:
– Housing starts in 2008: 99	10 km
Apartment sizes: 66–131 m2 ,
2–5 rooms and kitchen

Hornsbergs Strand g

Northwest Kungsholmen neighborhood

Northwest Kungsholmen is facing a transformation over the next few years. The goal is to move the inner city boundaries to the west. New homes and office buildings are being built, while stores, restaurants and other services are opening their doors in the area by the lake Ulvsundasjön.

Development period: 2007–2012
	rights: 162
Housing type: Apartment blocks	Location: Central
Number of residential units:	Communications: Subway, bus
– Total: approx. 430	Distance to downtown Stockholm:
– Started: 267	3 km
– Housing starts in 2008: 0
Apartment sizes: 43–169 m2 ,
1–5 rooms and kitchen

Hägernäs Strand

New neighborhood in Täby

Hägernäs Strand is a new neighborhood in Täby by the closed naval air field north of Stockholm. Live close to the water, take walks along the beach and enjoy the restaurant, café and shops on the square by the harbor.

Location: Täby

Development period: 2001–2012 Housing type: Apartment blocks Number of residential units: – Total: approx. 800 – Started: 578 – Housing starts in 2008: 97 Apartment sizes: 57–178 m2 , 2–5 rooms and kitchen

Remaining number of building rights: 210 Location: Close to sea and nature

Communications: Bus, train Distance to downtown Täby: 5 km

JM ANNUAL REPORT 200 8

Garden town with an urban feel, close to downtown

Järvastaden is a new neighborhood close to the Igelbäcken nature reserve in Solna and Sundbyberg. JM offers modern housing in apartments or singlefamily homes. The combination of beautiful scenery and central location make Järvastaden a unique neighborhood.

Location: Solna and Sundbyberg	Remaining number of building
Development period: 2007–2011	rights: 820
Housing type: Single-family homes/	Location: Close to nature and
Apartment blocks	Stockholm city
Number of residential units:	Communications: Commuter train
– Total: 1,050	Distance to downtown Stockholm:
– Started: 232	8 km
– Housing starts in 2008: 117
Apartment sizes: 48–112 m2 ,
2–5 rooms and kitchen

Dockan area

Dockan—where the city meets the sea

In the middle of the Öresund region, in a historic section of Malmö, Dockan is taking shape. An area that showcases the new Malmö, adapted to both European companies and Nordic living. A unique location, close to the city and with a view of the Öresund sound has made Dockan one of the most popular places to live.

Location: Malmö	Remaining number of building
Development period: 2003–2013	rights: 310
Housing type: Apartment blocks	Location: Close to city center/by
Number of residential units:	the sea
– Total: approx. 960	Communications: Bus
– Started: 649	Distance to downtown Malmö:
– Housing starts in 2008: 0	0.5 km
Apartment sizes: 58–133 m2 ,
1–6 rooms and kitchen

Industristaden

Uppsala's new gateway to the south

At Industristaden, industrial land steeped in tradition is being transformed into a brand new neighborhood just south of the old urban core Uppsala. A modern urban living environment is being built with attention paid to every detail. Pleasant city blocks feature space and light. Natural features are enhanced in various situations, with rooftop terraces or small gardens.

rights: 680 Location: Close to city center
Communications: Bus
Distance to downtown Uppsala,
Stora Torget: 0.7 km

Västra Sannegårdshamnen

The city by Norra Älvstranden

Västra Sannegårdshamnen has become one of the most popular neighborhoods in Göteborg. The feeling of being close to the sea enhances quality of life and you'll find everything you need right there in the neighborhood. At Norra Älvstranden, housing, culture and workplace combine to form a living urban environment.

Location: Göteborg	Remaining number of building
Development period: 2002–2010	rights: 0
Housing type: Apartment blocks	Location: Close to water
Number of residential units:	Communication: Bus, boat
– Total: 461	Distance to downtown Göteborg:
– Started: 461	5 km
– Housing starts in 2008: 0
Apartment sizes: 42–164 m2 ,
1–5 rooms and kitchen

Öster Mälarstrand, Västerås ,

New neighborhood for people who enjoy life

A whole new neighborhood is evolving at Öster Mälarstrand. The area that was once used for winter boat storage and other marine activities will now be transformed into a modern residential area right by the shores of lake Mälaren. JM is starting the first stage of tenant-owned apartments in apartment blocks with proximity to the water, green areas and services.

Remaining number of building
rights: 440
Location: Central
Communications: Bus
Distance to downtown Västerås:
2 km

Waldemars Hage g

Urban area by the river

At Waldemars Hage we focused on the best of both worlds — design and quality. The modern and innovative homes feature technology and functional solutions. Waldemars Hage has secured its position as an attractive residential neighborhood that is close to everything. The project is located along the Akerselva River in popular Grünerlökka, Oslo.

Location: Oslo, Norway	Remaining number of building
Development period: 2005–2011	rights: 0
Housing type: Apartment blocks	Location: Central by Akerselva river
Number of residential units:	Communications: Trolley, bus
– Total: 264
– Started: 159
– Housing starts in 2008: 105
Apartment sizes: 31–95 m2 ,
2–4 rooms and kitchen

Residential building rights provide good prospects

JM continuously invests in land that can be developed for future production and have 31,000 building rights available (31,000). The geographic distribution of building rights is as follows: 40 percent in Greater Stockholm, 35 percent in the rest of Sweden and 25 percent in Norway, Denmark, Finland and Belgium.

The available building rights portfolio includes two types of building rights: building rights on the balance sheet, about 20,100 (19,200), and building rights that are available through conditional acquisitions or cooperation agreements, about 10,900 (11,800). Building rights made available through conditional acquisitions or cooperation agreements are not recognized on the balance sheet. In most cases JM has the opportunity to decide both whether and when to buy the land.

Capital tied up in building rights (development properties in the balance sheet) for residential units totaled SEK 5,540m (5,171) at the end of the year.

GOOD COMPOSITION

JM's planned residential units are located in both traditionally strong housing markets and in new emerging markets.

Many of our planned residential units satisfy home buyers' demands for good communications, and a location close to water, service and schools.

Rising housing prices have led many prospective buyers to look for homes farther away from the big cities. Improved communications have also made it possible for people to accept longer commutes. This expansion of urban regions has made new housing markets attractive.

Number of residential units at different planning phases, Greater Stockholm and Rest of Sweden

At year-end 2008, external appraisal companies performed a valuation of all JM's residential development properties in cooperation with JM. The appraisals are made based on an assumed sales price for the properties at actual cash values, whereby future development gains are not taken into account. The valuations are based on the location, attractiveness, scope and type of building planned, the stage in the planning process and the time remaining until production starts.

The assessed market value of JM's residential development properties amounts to SEK 7.2bn (8.0). The corresponding book value is SEK 5.5bn (5.3). The approximately 10,900 residential units available through conditional acquisitions were not included in the assessment.

JM's available residential building rights

Area	Number of building rights
Greater Stockholm excl. Sigtuna, Vallentuna, Norrtälje	12,200
Malmö/Lund/Helsingborg/Halmstad	3,700
Greater Göteborg	2,700
Uppsala incl. Sigtuna, Vallentuna, Norrtälje	2,900
Västerås, Linköping, Jönköping, Örebro	1,700
Oslo Region, Bergen, Stavanger	5,750
Greater Copenhagen	900
Helsinki	300
Brussels	850
Total (approx.)	31,000

Market value is broken down as follows:

SEKbn	Market value	Carrying amount
Stockholm	3.4	2.4
Rest of Sweden	1.8	1.5
International	2.0	1.6
Total	7.2	5.5

Some of the development properties have old existing buildings that generate operating net with future plans for renovation or demolition. The valuation of these buildings is based on current rental revenue and future use, taking costs for essential conversion and extension into account. The market value of these

Market value, residental building rights, Greater Stockholm

Liljeholmskajen, a new part of Stockholm's inner city.

buildings is included in the above summary. The appraisal companies have assessed the properties' locations and attractiveness in four classes; A–D. An "A" location represents a prime site in the housing market in question and includes good communications, proximity to commercial services, as well as locations close to water. Class "B" is a good to average location in the respective housing market. Class "C" indicates a housing location slightly farther from communications and commercial services, while "D" locations are in peripheral areas in the housing market. Appraisal companies also classified the phases of the planning process into four planning phases; raw land, general plan, detailed plan and building permit. The diagrams show a breakdown of the value of JM's development properties into different locations and planning phases. The detailed planning phase covers the period from the start of detailed planning work until application for a building permit.

Market value, residential building rights, Rest of Sweden

Market value, residential building rights, International

Property development supports housing business

JM's project development of housing and commercial premises is mainly concentrated to Greater Stockholm. Its purpose is to support the housing business. Other than a few small properties that JM has for its own use, its portfolio contains no fully developed properties. The property portfolio consists entirely of project properties.

RESIDENTIAL PROPERTIES

The market for residential properties in Greater Stockholm has stagnated somewhat in the second half of 2008 because of the financial turmoil in the credit markets. Demand is still strong from both property management companies and real estate investors, due to low vacancies and a reliable cash flow. Residents in JM buildings are also still interested in forming tenant-owners' associations and buying the properties. In the remaining housing stock restructuring discussions began in 2008.

In December JM sold its single largest cohesive housing stock in Älta, Nacka. The property portfolio consists of 556 residential units and about 8,500 square meters of commercial space. The properties were purchased in 2003 and have been under continuous development since the acquisition. The deal also included 70 residential building rights in Älta. JM continued to develop the rest of its housing stock in 2008. In June, a property on Lidingö was sold to a tenant-owner association formed by the residents.

During the fourth quarter 2008 JM decided to initiate new production of 52 leasehold units in Hägernäs, Täby. The possibility of starting additional rental projects is being considered.

In Lillängen, Nacka, production is making progress for the special senior housing project that began in 2007 after the government investment grant was approved by the County Administrative Board. There is a continued need for senior housing in several of the country's municipalities and during the year the Ymerplan project in Sigtuna started after the municipality held a competitive bidding process. Another competitive bidding process, this time in Norrtälje, resulted in a project with construction beginning in early 2009. JM's subsidiary Seniorgården is involved in discussions with several of the country's municipalities as well as private operators, about potential new

projects. JM Property Development is responsible for these projects.

COMMERCIAL PROPERTIES

Office rents continued to rise somewhat in early 2008, but then leveled off during the year. Prime rent in Stockholm's Central Business District (CBD) is at a record level of SEK 4,400 per square meter. (Source: Jones Lang LaSalle, autumn 2008)

The Swedish real estate investment market is usually one of the largest in Europe in terms of trading volume. Foreign investments in Sweden dropped off sharply in 2008. (Source: Jones Lang LaSalle)

Demand is still strong for modern, new construction or renovated properties. Buildings in prime locations in the city center or in attractive inner suburbs that have tenants with long leases are also attractive on the market, resulting in differentiation of the market with lower yield requirements for this type of object.

Construction of JM's new headquarters in Frösunda is progressing according to plan with occupancy in late 2009. Vasakronan has ordered the project, which meets energy efficiency requirements according to the Green Building standard. As stipulated in the earlier deal with Vasakronan from 2006, the fourth and last office building rights of about 9,000 square meters were sold.

Development in the Dalénum area on Lidingö began in 2008 with several extensive tenant adjustments in the existing portfolio. A ten-year lease was signed with AGA for new corporate headquarters of more than 8,000 square meters. Following demolition and conversion to residential units, more than 42,000 square meters of commercial premises will remain. About 1,000 residential units are planned for the area, including 200 rentals, as well as continued development of existing commercial premises.

Market valuation—project properties		Dec. 31, 2008			Dec. 31, 2007
	Market value, SEKm	Carrying amount, SEKm	Area (000) m²	Occupancy rate annual rent, %	Carrying amount, SEKm
Residential units (leasehold)	139	137	8	99	484
Properties under development	438	410	70	93	271
Fully developed commercial properties	92	67	6	92	35
Total	669	614	84	93	790

JM Residential Stockholm

EARNINGS TREND

The business segment's income was SEK 5,317m (5,217) and operating profit fell to SEK 920m (1,236). Operating margin decreased to 17.3 percent (23.7). The operating margin decreased due to worsened demand and sales, as well as to write-downs of development properties. In addition, costs for staff cutbacks and revaluation of projects, mainly due to lower revenue expectations, were charged against fourth quarter earnings. The writedown for development properties of SEK 140m is due to the current market situation that affects both income and the pace of expansion in a few large projects.

BUILDING RIGHTS

During the year building rights equivalent to more than 900 (1,550) residential units were acquired in Stockholm and Solna.

HOUSING STARTS

During the year production began on 973 (1,820) residential units including 594 in Stockholm, 86 in Värmdö, 68 in Solna, 49 in Sundbyberg, 31 in Järfälla, 48 in Sollentuna and 97 in Täby. The low number of housing starts is attributable to weaker demand, a lower sales rate and the limited ability of the banking system to support production with cost-effective financing.

JM RESIDENTIAL STOCKHOLM

The JM Residential Stockholm business segment develops residential projects in Greater Stockholm. Operations include acquisitions of development properties, planning, pre-construction, production and sales of residential units.

Järvastaden, the garden town in Järfälla close to downtown Stockholm. Liljeholmskajen — urban lifestyle close to the water.

JM Residential Sweden

EARNINGS TREND

The business segment's income fell to SEK 3,263m (4,011) and operating profit fell to SEK 197m (685). Operating margin decreased to 6.0 percent (17.1). The decreased margin is attributable to the downturn in demand and sales as well as to write-downs of development properties. In addition, costs for staff cutbacks and revaluation of projects, mainly due to lower revenue expectations, were charged against fourth quarter earnings. The decision to reduce capacity in Göteborg also involves costs for reorganization and termination of projects, which were charged against the quarter.

An increase in working capital and investments in development properties have limited cash flow.

BUILDING RIGHTS

During the year JM acquired building rights equivalent to about 1,600 (1,100) residential units in Skåne (Lund, Staffanstorp, Lomma, Landskrona, Helsingborg), Halmstad, Jönköping, Linköping, Örebro, Västerås, Eskilstuna and Norrtälje.

HOUSING STARTS

During the year production began on 525 (1,203) residential units in apartment blocks, including 144 in Skåne (63 in Lund, 57 in Halmstad, 24 in Malmö), 39 in Kungälv, 30 in Jönköping, 63 in Linköping, 28 in Västerås, 125 in Uppsala, 48 in Vallentuna and 48 in Norrtälje. Other housing starts include 72 (312) singlefamily homes, with 44 in Skåne (33 in Malmö, 11 in Lund), 9 in Örebro and 19 in Jönköping. The low number of housing starts is attributable to weaker demand, a lower sales rate and the limited ability of the banking system to support production with cost-effective financing.

JM RESIDENTIAL SWEDEN

The JM Residential Sweden business segment develops residential projects in growth areas in Sweden, excluding Greater Stockholm. Operations include acquisitions of development properties, planning, pre-construction, production and sales of residential units. Contracting operations are also conducted to a limited extent.

Västra Sannegårdshamnen, a new neighborhood in Göteborg.

Dockan area in Malmö, with a view of the Öresund sound.

JM International

EARNINGS TREND

The business segment's income fell by 23 percent to SEK 2,058m (2,685). Operating profit fell to SEK –176m (178). Operating profit for the fourth quarter includes SEK –140m for writedown of development properties in central Copenhagen. Operating margin decreased to –8.6 percent (6.6).

The winter-survival strategy in Denmark and Finland, together with the worsened market conditions for all foreign units, entails revaluation with negative effects during the fourth quarter on both income and expenses. In addition to the large write-down of development properties in Copenhagen, expenses also arose related to reorganization and termination of projects in all foreign units.

The decreased cash flow can mainly be explained by the increase in development properties, settlement of deferred payments relating to the acquisition of development properties and the limited number of housing starts.

NORWAY

The weak demand for newly built homes has further deteriorated as a result of the financial and credit crisis. Prices on the existing home market for residential units continued to fall during the last quarter and an equivalent change also occurred for newly produced housing projects. The supply of newly built homes is large and due to low sales in the market for newly built homes, housing starts have been postponed. Sales, stronger cost control in the projects and developing new cost-effective products are top priorities.

During the year 136 residential units (372) were sold and production began on 227 (638) units. Available building rights correspond to about 5,750 residential units (5,550). As at January 1, 2009 operations in Norway are organized in three regions (South, West and Oslo), instead of the previous five, with local offices in Oslo, Tønsberg, Skien, Stavanger and Bergen.

DENMARK

The housing market in Copenhagen has been characterized all year by very low activity and falling house prices. Housing prices in Copenhagen do not yet appear to have found their equilibrium level. Demand for residential units in Copenhagen remains soft. Home buyers are generally cautious at the same time that banks have tightened lending. The continued decreased activity level in the market has resulted in some stabilization of production costs.

A write-down of a total of SEK 140m for two centrally located development properties in Copenhagen will have an effect on JM Denmark's operating result.

During the year 64 residential units (45) were sold, including 57 sold to a single investor who intends to rent them out. During the year production began on 0 (48) units.

Available building rights correspond to about 900 residential units (950).

JM INTERNATIONAL

The JM International business segment develops and sells residential properties in Norway, Denmark, Finland and Belgium.

Income Number of employees
	January–December
SEKm	2008	2007
Income	2,058	2,685
Operating profit 1)	–176	178
Operating margin (%)	–8.6	6.6
Average operating capital	1,800	1,144
Return on operating capital (%)	–9.8	15.6
Operating cash flow	–657	– 10
Carrying amount, development properties	1,562	1,389
Carrying amount, project properties	61	30
Number of available building rights	7,800	8,000
Number of housing starts	259	730
Number of residential units sold	246	471
Number of employees	278	316
1) Including write-downs on properties	–140	-

FINLAND

One residential project is underway with 22 residential units in Kervo municipality outside Helsinki. Activity on the housing market in Helsinki slowed in 2008; activity relating to construction of single-family dwellings in particular declined. The number of completed unsold homes is historically high in the market.

During the year 10 residential units (0) were sold and production began on 0 (22) units. Available building rights correspond to about 300 residential units (300).

BELGIUM

In the Brussels region, where JM has its operations, activity in the industry slowed during the second half of the year and resulted in falling prices on both the existing home market and the market for newly built homes. Increases in production costs have slowed due to the lower activity level in the market.

During the year 36 residential units (54) were sold and production began on 32 (22) units. In the fourth quarter production began on 32 units in a large apartment block project in Anderlecht, where JM Belgium holds building rights with building permits for an additional 100 residential units.

Available building rights correspond to about 850 residential units (1,200).

JM Property Development

EARNINGS TREND

The business segment's income during the year was SEK 213m (91) including rental revenue of SEK 108m (78) and contracting revenue of SEK 105m (13). Operating profit fell to SEK 75m (162). The change is mainly attributable to lower gains from property sales.

Net operating income for project properties was SEK 14m (22). Contracting revenues from production amounted to SEK 19m (2).

During the year properties were sold for SEK 588m (581) with gains of SEK 74m (165) including a reversal of provisions in conjunction with earlier property sales of SEK 5m (38).

PROPERTY TRANSACTIONS

During 2008 parts of the previously agreed deal with Vasa kronan were carried out through the sale of offices and land in Frösunda. Land was sold at a value of SEK 39m with gains of SEK 18m.

During the year JM sold properties in Älta, Nacka, for SEK 477m with gains of SEK 33m.

A rock shelter in Dalénum on Lidingö was sold back to Diligentia for SEK 10m in accordance with a previous agreement.

A property on Lidingö was sold to a tenant-owner association for SEK 57m with gains of SEK 18m.

PROJECT DEVELOPMENT

Construction of JM's new headquarters in Frösunda is progressing according to plan with occupancy in late 2009.

A senior housing project that began in 2007 for 45 residential units is under construction in Lillängen, Nacka, with Carema as tenant. During the fourth quarter JM acquired land for production of another senior housing project for 72 residential units in Sigtuna, Ymerplan, with the municipality as tenant.

In Bolinder Strand, Järfälla municipality, development of commercial facilities adjacent to the residential project is making progress. Several new rentals and expansion projects of about 2,000 square meters were carried out in 2008, resulting in an occupancy rate of 87 percent at year-end.

In the Dalénum area on Lidingö, which was acquired at the end of 2007, detailed planning is in progress, along with renovations and tenant adjustments. The occupancy rate in the existing portfolio was 90 percent at year-end.

BUILDING RIGHTS

JM's building rights for commercial project development amount to a total of about 64,000 square meters, including 54,000 square meters in office building rights and 10,000 square meters in residential building rights. The carrying amount is SEK 80m (111).

JM PROPERTY DEVELOPMENT

The JM Property Development business segment develops residential and commercial properties in Greater Stockholm. The business segment's entire portfolio comprises project development properties.

January–December
2007
91
162
984
16.5
170
111
760
17
165

JM is developing the new Dalénum neighborhood with housing and commercial premises by the old AGA factory on the south shore of Lidingö.

JM Production

EARNINGS TREND

Demand for contracting operations in the Stockholm market is still robust and orders in the business segment continue to be strong.

The business segment's income was SEK 2,008m (1,296) and operating profit was SEK 124m (89). The operating margin was 6.2 percent (6.9).

PROJECTS

During the year this business segment received several major orders, including new construction of a commercial property in Kista for Vasakronan and refurbishing of and addition to a commercial property in Solna for Fabege. Two additional orders were received from Söderenergi at Igelstaverket for excavation and concrete work for a fuel plant and new construction of a main building, as well as an additional excavation and foundation job for a residential project in Hässelby for SMÅA. A large internal project involves renovation of the commercial property in Dalénum, Lidingö for JM Property Development. Another project involves remodeling northern Bantorget in Stockholm and land clean-up projects in Hornsberg and Hjorthagen for the City of Stockholm.

Extensive ongoing projects include the renovation of commercial properties in Kista for Fastighetsbolaget Klövern, excavation and development projects at Henriksdalshamnen in Hammarby Sjöstad for the City of Stockholm, construction work at Igelstaverket for Söderenergi, as well as renovation and an addition at Arlanda for the Swedish Civil Aviation Administration. Larger internal projects in progress include new construction of offices in Frösunda, where the final client is Vasakronan, and housing in Sundbyberg.

Construction work in the central building at Arlanda airport. Expansion of pier at Henriksdalshamnen in Stockholm.

Greater security for well-informed customers

JM aspires to be the customer's first choice when buying a new home—where a focus on the customer and sensitivity to our customers' needs are crucial factors for success. Buying a JM home should be as simple, secure and convenient as living in one. To better achieve this objective, and to calm concerns that many felt about buying a home in today's economy, JM expanded its security package in Sweden with two points: dual residence insurance and access protection.

JM´S SECURITY PACKAGE IN SWEDEN OFFERS:

• Dual residence insurance: If it takes time to sell an existing home, the customer can receive reimbursement for costs associated with maintaining dual residence for up to 6 months, after a 3-month qualifying period (Effective January 1, 2009)
• Access protection: The customer may postpone moving in by up to three months if this is not possible for any reason on the designated date (Effective January 1, 2009)
• Financial documentation will be developed for each buyer prior to purchasing a home, based on the customer's finances, that shows the entire cost of housing
• The tenant-owners' association financial plan is reviewed by two analysts authorized by the National Board of Housing, Building and Planning, who certify that the plan is based on reliable grounds
• JM also purchases apartment that is not sold with tenant-owner association rights by the closing day on terms and conditions as stated in the financial plan, which means that the association is not hit with reduced revenues from owner contributions and annual fees
• Guarantees for deposits issued by AB Bostadsgaranti. AB Bostads garanti is half-owned by the Swedish government and half by the Swedish Construction Federation
• A two- to five-year warranty period for construction work
• Ten-year building defect insurance policy, beginning from the final inspection
• If any damage occurs in any of our projects within ten years after final inspection due to an error in façade design or construction and such damage is not covered by the building defect insurance, JM will ensure that the damage is repaired (New 2008).

For many years, JM's security package has been automatically included in the purchase of a JM home. The package is based on our extensive quality and environmental management system, and aims to make the house purchase a secure investment for the customer.

IMPROVEMENTS TO KEEP CUSTOMERS SATISFIED

Sensitivity to the needs of our customers also involves constantly working on becoming better at understanding who the customers are and what they prefer and improving quality based on this knowledge. That's why we conduct regular customer surveys in our residential projects during both the planning stage (Early Customer Survey) and for evaluation purposes (Customer Satisfaction Index), and through our "guarantee questionnaires", where home buyers report two years after moving in how well the home and its design have lived up to the expectations they had at the time of purchase and the time of occupancy. We carefully monitor what happens in our society and the market in general. We believe that the ability to identify and understand changes in society and their significance for housing, work and lifestyle are crucial success factors for our business.

In 2008 the Customer Satisfaction Index for the JM Group was 4.24 on a scale of one to five — an improvement from last year's 4.20.

In an effort to fine-tune our ability to analyze what customers think of our homes and their dealings with us, during the year we revised and improved on our tool for measuring the Customer Satisfaction Index, which we will begin using in 2009.

JM'S VIP CUSTOMERS

JM's VIP customers pay an annual fee of SEK 200 and in return have priority to all JM and Borätt projects in Sweden, which means that VIP customers have access to all new projects before they are released for sale to the general public.

In 2008 about 4,000 persons registered for JM's VIP customer program and 34 percent of customers stated that they were VIP customers at the time of purchase — up 8 percentage points from the previous year.

According to the VIP customers, the main reason for becoming a JM VIP customer is to gain priority to our residential units.

One example of how customer needs and ambitious business intelligence drive our development is that JM was the first company in the industry to launch a mobile site for visiting homes in spring 2008.

At mobil.jm.se visitors can view JM homes directly on their mobile phones, and easily find our open houses using the built-in map function.

For many people, buying a home is the biggest transaction of their lives. Ensuring that the customer feels secure about the purchase is one of the most important jobs for us as a residential project developer. Achieving this objective involves ensuring that the home is a secure investment just as much as creating safe housing with a focus on the home environment.

But the opportunity to participate, express opinions and to some extent influence the design of the homes and neighborhoods is also an appreciated aspect of being a VIP customer. VIP customers get to express requests and opinions when they register for the program and they are regularly offered the opportunity to take part in various customer surveys. In 2007 and 2008 a random sample of VIP customers was also invited to participate on the JM panel, where they had the opportunity on eight occasions to express their opinions on more general issues related to homes and housing areas. JM applies the panel results in its operations and presents them to the readers of the customer magazine entré.

Since 2008 it is also possible to become a VIP customer with JM's subsidiary Seniorgården, which offers housing to home buyers over the age of 55.

CUSTOMER ADVOCATE

Customers in Sweden who feel they have been wrongly treated by one of JM's representatives can turn to JM's customer advocate. The customer advocate is a lawyer who works for JM, and whose job is to examine customer complaints about projects and to mediate, when needed, between the customer and JM's representative.

In our customer magazine entré, which is sent home to all of JM's VIP customers, the readers get the chance to "visit" JM customers who have already moved in, and share their experiences about moving into a newly built home. The magazine also features current events and trends in interior design, form and architecture, and offers inspiration, tips and answers to questions — both about the home purchase in general and what it is like to buy a home from JM more specifically.

JM published eight issues of entré in 2008 and those who are not VIP customers can read it online at jm.se.

Each phase in life requires a well-planned home — based on the specific needs of the customers in their particular social situation at the time. Families with children usually have completely different requirements for their home than young adults without children. Our requirements also change over time; the social situation of today's seniors is not at all like that of previous generations, which is reflected in their requirements for the home environment.

POPULAR OPEN HOUSE DAYS

The Big Open House Day is a regular event during which all JM residential projects in Sweden are open to the public on the same day, often under a common theme. Four open house days were held in 2008: one during the holiday season at the beginning of the year, one in the spring and two in the autumn. At JM's Big Open House Day in May, which had the theme Garden & Balcony, JM in Finland and Norway took part for the first time, and JM in Denmark took part during the autumn.

Interest in the open house days was strong throughout the year, though we noted a slight decline in the autumn when interest in buying a home dropped throughout the market. On average, the total number of visitors at the Big Open House Day in Sweden was about 3,000 in the spring; the figure dropped to about 2,000 visitors per open house day during the autumn and then surged again at the end of the year.

We evaluate each Big Open House Day at each residential project by having visitors complete questionnaires about the project, the model home, JM's on-site representatives and the event as a whole. At the September open house, 69 percent of the visitors stated that the visit increased their interest in buying a JM home in the future, and 98 percent responded that they would recommend that friends and acquaintances attend a Big Open House Day in the future.

HOUSING BASED ON LIFESTYLE

For us it is obvious that housing choices are increasingly governed by the social situation of the buyer, and that our ability to create housing adapted to different lifestyles is a crucial factor for success for JM as a housing developer.

By learning more about the social situation of our customers we constantly strive to become better at offering housing that meets all the requirements customers place on a modern home — whether they are young adults, families with children, or seniors.

Liljeholmskajen in Stockholm was one of JM's most popular residential projects on the Big Open House Day in May 2008.

Continued focus on energy and climate

JM's work helps to create sound communities for the people of today and tomorrow; the houses JM builds today will last for at least 100 years. We will continue to focus on the energy consumption of the houses since climate change is the major challenge of our time.

Since the construction industry is responsible for a significant part of society's consumption of energy and materials, which has a large impact on the environment, it is important for JM — as a community developer and as Sweden's largest residential builder — to focus on reducing energy consumption and energy needs. Homebuilders carry a heavy responsibility with respect to the environment for future generations.

THE ENVIRONMENT: A TOP PRIORITY

For JM, sustainable urban planning involves financial as well as social and environmental accountability. We aspire to achieve the obvious: to create safe, attractive housing, use ethical business methods and place equivalent demands on our suppliers. Therefore, in 2008 JM developed a code of conduct for suppliers and

subcontractors, a requirement that will gradually be integrated into our supplier agreements. The most important aspect of sustainability for JM involves environmental initiatives, because that is where the company has the greatest impact on society in its role as housing developer.

JM's top-priority environmental aspects — those areas where the company can make the biggest contribution for the environment — are:

• Energy consumption when the buildings are in use
• Choice of building materials
• Handling of construction waste
• Use of transports and construction machinery
• Handling of contaminated soil.

ENERGY

For years, JM's most important environmental objective has been to decrease energy consumption in order to minimize the contribution to climate change. JM has therefore become the leading European builder of energy-efficient housing — for its entire production, not just the occasional project.

In Sweden, a number of energy measures have been mandatory for many years. In addition to improvements to the actual buildings, all homes have energy-efficient (class A) refrigerators and freezers, as well as energy-efficient washing machines, dishwashers and dryers. In addition only energy-efficient fans and low-energy light fixtures are installed. Other measures that have reduced energy needs include electric towel racks that are not used as a primary source of heat and electric floor heating is only installed as comfort heating with a thermostat and timer.

All housing production that JM initiated in Sweden in 2008 is planned based on JM's new concept for low-energy houses. JM's definition of low-energy houses are houses that meet the authorities' energy requirements during operation with a substantial margin. The first low-energy houses will be completed in autumn 2009.

JM's residential units will meet the requirement in the National Board of Housing, Building and Planning's Building regulations, for 110 kWh measured energy consumption per square meter and year excluding household electricity with a good margin, average energy consumption is now expected to be 75 kWh.

JM is continuing its development initiative by making the houses increasingly energy efficient, with the goal that also in the future, all construction will have the most energy efficient building shell in the industry (building shell refers to the walls, window, roof and flooring of the house). At this time JM does not believe that Passive house technology is commercially justifiable, but we are continually testing new solutions to learn more and, by extension, improve our low-energy house concept. One such development project is Presse Park in Kungsbacka, south of Göteborg, where JM built two two-story houses with extra insulation. The homes are heated using a preheated air intake system and the houses do not have any radiators. Energy consumption in these buildings will be monitored and compared with two reference buildings that were built using more conventional construction techniques. Even in segments of the JM Group outside Sweden projects were carried out in which new energy solutions have been tried.

LOW-ENERGY HOUSES STANDARD IN SWEDEN

Trädgårdslunden in Hjärup, between Malmö and Lund, and Björkbacken in Vallentuna north of Stockholm, are examples of projects built in accordance with JM's new concept for low-energy houses. Occupancy for both of these projects is planned for autumn 2009.

JM is also working proactively to reduce energy consumption during production. Only hydroelectric power that meets environmental standards are used in all JM properties and construction sites.

MATERIAL CHOICE AND CONSTRUCTION

JM's residential units are built using sound, proven natural materials such as tile and wood. Back in the mid-1990s JM in Sweden developed its own environmental assessment system to steer the use of building materials toward reducing the burden on the environment. Material groups that are assessed include paint, adhesives, putty, flooring and roofing and JM has gathered the results in an environmental product database. Monitoring building supplies ensures that the goods do not entail any health or environmental risks for either customers or employees. JM's environmental assessment procedures have been adapted to the criteria developed within the framework of BASTA — the construction industry's joint project to discontinue the use of hazardous substances.

All pre-construction and installation work in JM's residential units meet the requirements according to the industry rules "Safe water installation"— even installed heating systems, which JM was the first to offer among the major construction firms. JM also works with methods to avoid humidity in the building during planning and production to prevent moisture and water damage. We use moisture-tolerant and mold-resistant gypsum wallboard for both wet areas and exterior stucco walls. Stringent requirements are also placed on vapor barriers for bathroom walls in accordance with current industry rules.

CONSTRUCTION WASTE

Through planning, courses and cooperation with waste management companies, over the years JM in Sweden has endeavored to reduce the amount of unsorted waste and waste sent to the landfill from construction sites. This aspiration is also reflected in JM's operations program, which aim to reduce the amount of waste sent to the landfill by 50 percent and to reduce the amount of unsorted waste by more than 50 percent. These ambitious goals, which were set based on already low levels, have proven difficult to achieve within the original timeframe and have therefore been extended to 2010.

In order to facilitate successful source separation of waste at construction sites, and to motivate and encourage construction sites to "compete" with each other to become better, JM has a "waste bonus" system. During the year the bonus was awarded to eight work crews at the construction sites in Sweden that succeeded best at waste management of construction waste for recycling.

The Ecocycle Council industry guidelines for waste management during construction and demolition, which JM helped to develop, are applied at all JM projects in Sweden. The guidelines entail much-needed industry standardization relating to issues such as a baseline for source separation of waste and classification and color-coding of construction waste fractions.

TRANSPORTS AND MACHINERY

Construction machinery and transports of goods and people are responsible for considerable emissions of substances that impact health and the environment. JM contracts out most of its transports of goods and work with construction machinery to its suppliers. JM are making progress in our efforts to develop logistics processes in relation to our suppliers, and projects are underway to increase the opportunities for JM to take control over deliveries to and from our construction sites. Consolidated shipments of materials, degree of utilization in trucks and the right type of delivery vehicle to the workplaces are examples of environmental improvements that are being tested and evaluated.

Today JM in Sweden makes demands about the fuel suppliers use; for example, only alkylate-based fuel can be used in small gasolinedriven machines. In Sweden, for several years all new company cars are "green" cars that run on ethanol (E85) or biogas, or that use hybrid technology. At the end of the year 97 percent of all JM company cars were green cars.

According to guidelines formulated during the year, all business trips for JM must minimize impact on the environment with respect to carbon dioxide emissions. For instance, travel by train is given priority over travel by air, and collective transportation is encouraged for local travel. By using videoconference equipment at JM's offices in Stockholm, Göteborg, Malmö, Oslo, Copenhagen and Helsinki, many trips have been avoided and JM have further reduced carbon dioxide emissions from business trips.

JM's residential projects in Stockholm use our subsidiary JM Entreprenad for subcontracted site excavation work. During the year we started a project with a focus on reducing construction transports and increasing recycling of excavated material and rock material among the projects. Today JM in Stockholm has access to two geographically strategic locations for these logistics improvements. The goal during the upcoming year is to create additional locations that are strategically situated in relation to our residential projects. We have our portfolio of building rights in Stockholm, which we can use during the early phases, to help us achieve this goal.

CONTAMINATED SOIL

Many of JM's projects are built in old industrial parks where the soil is contaminated by chemicals. The company has extensive experience of remediating soil and preparing it for new construction. JM's own contractors often take care of the remediation of contaminated soil.

During the year we tightened up and more clearly defined procedures for handling soil pollution in JM's Operations System. JM studied and evaluated several areas prior to their acquisition and some properties were remediated at the start of excavation. JM has carried out extensive studies and investigations at the large Dalénum area on Lidingö outside Stockholm. Final reports on previously remediated areas (Liljeholmskajen, Stora Mossen and Danviksstrand, all in the Stockholm area) have been submitted to the authorities and received approval. Handling soil pollution provides a better, safer environment for people, plants, and animals.

HOW WE WORK

GUIDED BY THE PRECAUTIONARY PRINCIPLE

JM has long been guided by the precautionary principle. For example, JM has eliminated the use of many products as soon as any suspicion of negative impact arose — even those commonly used in the construction industry.

Future climate scenarios that might cause conditions such as higher water levels are factored into our calculations when planning new residential areas. JM homes are planned to leave a good margin so they will be located considerably higher than any predicted risk levels. One example of this is the Lomma area outside Lund/ Malmö, which was built approximately three meters above the current mean water level.

ORGANIZATION

JM's quality and environmental council, with the CEO and the company's business unit and regional managers, has ultimate responsibility for common governance and operations in Sweden, including environmental issues. The Group's quality and environmental department is responsible, together with regional quality and environment coordinators, for coordination, development and support in environmental initiatives. Activities include construction site visits to entrench and improve environmental initiatives in production. We address environmental issues in all our daily work and expect extensive commitment

Energy-saving windows

Large windows are popular and provide light homes and offices. But windows are often major energy thieves and therefore all windows in JM homes feature extra thermal insulation.

Energy-saving walls

Good insulation in the walls and roof enable the house to stay warm with lower energy consumption. More airtight walls minimize energy loss and drafts, at the same time that properly dimensioned ventilation systems keep the air healthy and take advantage of the heat through heat recovery.

Sensitivity to people with allergies

Research has shown that there may be a relationship between allergic problems in children and PVC. JM's residential units have PVC-free walls and flooring. The landscaping surrounding JM houses use nontoxic plants and trees that are suitable for people with allergies, such as apple trees and roses. Kitchens and bathrooms should be easy to clean. JM avoids dusty shelves in the kitchen by installing cabinets that go up to the ceiling. In bathrooms, the tub is designed so that it is easy to keep the floor and floor drain clean.

A good sound environment

Many people perceive loud sounds and noise as one of the biggest problem in the residential environment. Our residential units are quieter than what Swedish building regulations require. Our extra thick walls and floor structure provide outstanding insulation between apartments. Our exterior doors are required to have a good soundtransmission class and we avoid mail slots in doors by placing mailboxes in the entry to the stairwells.

Good electrical environment

We minimize exposure to electrical and magnetic fields in accordance with the precautionary principle. We always use a five-wire system, which limits the magnetic fields throughout the building, and we avoid locating distribution boxes close to the bedroom.

JM ANNUAL REPORT 200 8

throughout the company and among both craftsmen and administrative staff.

OVERSIGHT AND FOLLOW-UP

In every substantial way, the operational systems developed within JM in Sweden, meet the standards set by ISO quality and environmental management requirements. The primary goal has been to develop a system based on the processes and needs of the operation, but the organization is also well prepared for certification in the future. JM develops its quality and environmental initiatives using operations programs with measurable and detailed quality and environmental objectives.

JM employees follow up on targets and requirements with nonconformity and key figure reports, as well as with internal audits.

JM held its environmental training program for employees in Sweden during the year, with the purpose of further increasing knowledge and commitment with respect to working with the company's common procedures.

PARTNERS

Much of JM's impact on the environment occurs via the company's external partners such as subcontractors and materials suppliers. All strategic framework partners in Sweden undergo an environmental assessment to ensure that they only use or deliver products that meet environmental standards, that they have reliable procedures for waste management and that they also have their own in-house environmental program. During the year the number of framework agreements increased by 28 percent, from 160 to 205.

INDUSTRY ISSUES

Environmental issues are sometimes industry-wide and environmental initiatives therefore require broad cooperation across corporate boundaries in order to succeed.

During the year JM helped initiate the development of a nationwide environmental program for the construction industry in Sweden. The work is being carried out in cooperation with the Ecocycle Council and Swedish Environmental Management Council.

In 2007 JM joined the international network BLICC — Business Leaders Initiative on Climate Change — to strengthen its climate work. Among other things, JM will now calculate and report its emissions in accordance with the international Greenhouse Gas protocol and strive to carry out operations with minimum impact on the environment.

JM has long been a member of the Ecocycle Council and it is affiliated with the government's Bygga-Bo dialogue project, in which several companies, municipalities and the Government jointly agreed to carry out certain measures within efficient energy consumption, efficient resource utilization and a healthy indoor environment. Among other things, JM has continued to support the research project to develop a classification system for environmental standards for buildings. The purpose of this system, which at the time of this writing is not yet completed, is to facilitate environmental communication with customers and perhaps even to implement advantageous terms for loans, insurance and taxes for buildings that meet a high degree of environmental standards.

In 2008 JM became a corporate member of Sustainable Innovations AB. Sustainable Innovation is a national center for energy efficiency in daily life. The primary purpose is to contribute to the development of Swedish industry in the field through commercialization of new technology. Sustainable Innovation will run development projects together with the member firms. Initiatives will include both projects that do not fit in the individual companies' R&D operations and collaborative projects with several parties. The organization has the support of the Swedish National Energy Administration to gather the strength of Swedish know-how in environmental engineering and energy efficiency.

JM is participating on the program board for the SBUF mandate on the third phase of the 2008–2011 solar energy program. One of the purposes of the program is to increase the use of solar cells and to ensure that technology will become a natural part of the modern energy system. In the current phase of the program, activities focus on issues such as building integration, grid connection and standardization.

ENVIRONMENTAL IMPACT OF PROJECT DEVELOPMENT

			Construction	Completed
	Acquisition	Planning	site	building	Demolition
Time in process	months	6–12 months	1–2 years	>100 years	months
JM's influence	major	major	major	diminishing	minor
Scope to prevent environmental impact	major	major	minor	minor	minor
Impact on the environment	minor	minor	moderate	major	moderate

PROFITABLE ENVIRONMENTAL PROGRAM

For JM environmental initiatives are a matter of good business and profitability, in both the short and the long term — whether dealing with acute environmental problems or accepting responsibility for environmental issues of the future. Only by addressing urgent environmental problems and accepting responsibility for future environmental issues can JM continue to create long-term shareholder growth.

Measures conducted from this perspective also give added value to JM's customers. For example, energy-efficient houses, installations which conserve water and logical spaces for sorting waste all help to lower operating costs for households and provide environmental benefit for society. benefit for society.

Credit ratings agencies and mutual fund companies actively monitor JM's progress within sustainable development. actively

GROUP QUALITY AND ENVIRONMENTAL POLICY

JM shall promote long-term quality and environmental management in all its operations. The company shall focus on customer needs and strive for sustainable development of society.

To accomplish this, we shall:

• Preserve and contribute environmental aesthetic values to the urban and natural landscapes
• Produce buildings with a healthy living and working environment
• Work in a structured and systematic manner that leads to continual improvements in environmental and quality performance
• Prevent the production and dispersal of pollutants and promote resource conservation and closed cycles
• Actively contribute to development of knowledge and raise employee awareness of quality and environmental issues
• Apply environmental standards that are more rigorous than existing legal requirements.

QUALITY AND ENVIRONMENTAL OBJECTIVES

• We shall focus on quality, the environment and ethics so that every customer and project is a good reference
• Our projects shall be structured, implemented and managed so as to minimize energy consumption and its impact on the environment
• We shall reduce the volume and hazardousness of waste
• We shall use materials and methods that reduce environmental impact and contribute to a healthy indoor and working environment.

FACTS AND KEY FIGURES ENVIRONMENT JM SWEDEN FIGUR

		2008	2007	2006
Implemented internal quality and environmental audits internal		106	106	120
Carbon dioxide emissions JM (tons) 1)		15,800	16,300	15,100
Carbon dioxide emissions JM (tons/SEKm) 1)		1.46	1.53	1.90
Newly produced homes' estimated carbon dioxide emissions from energy consumption (kg CO2 /m2 BRA)		7	7	7
Percentage of building waste that goes to landfill (%) 2)		15	16	15
Products in environmental product database		2,731	2,412	2,130
Company cars that are green cars (%)		97	91	71
Number of frame agreements with expanded environmental review		205	160	127
Projects with key indicators (%) 2)		100	89	100
Projects with key indicators (number) 2)		59	49	60
Goal fulfillment JM Residential Stockholm and JM Residential Sweden	Goal 2010	2008	2007	2006
Newly produced homes' estimated energy requirement, including household electricity, (kWh/m2 UFA) 3)	-	100	113	117
Building waste to landfill (kg/m2 GFA)	2	3.6	4.1	3.6
Percentage unsorted building waste	15	30	40	39
Total quantity building waste (kg/m2 GFA)	13	24	25	25

1) Calculations for 2007 and 2008 adapted to BLICC's climate calculation model and apply to all of JM in Sweden.

2) Pertains to JM Residential Stockholm and JM Residential Sweden.

3) New energy measures approved 2007. Follow-up is based on a new calculation model beginning with 2008.

UFA = Useful floor area. GFA = Total floor area.

JM's business depends on a host of skills that create houses where people feel at home

In the long-term, the ability to attract new talented employees, while retaining those we already have, will be essential for our continued success.

ADAPTATION OF THE ORGANIZATION

In response to last autumn's financial crisis and the rapidly deteriorating economy JM was forced to adjust production and the organization. In all, about 600 employees were given notice and 530 of them left or will leave JM. The majority of these employees were laid off due to lack of work and several retired. Through good collaboration with union representatives, layoff negotiations were carried out as quickly as possible, based on the situation in each city. The age structure at JM continues to be evenly distributed after several job cuts were resolved through retirement. In addition, JM's core competency — housing development and production — remains in the company and therefore even in the future we are prepared to meet the demands of our customers for problem-free living.

SKILLS DEVELOPMENT AND SUPPLY OF EXPERTISE

At JM, our ambition is for relationships with our employees to be characterized by our core values: quality, a long-term approach, reliability, commitment, sensitivity and a sense of style.

JM holds employee performance appraisals at least once a year to review target fulfillment and how we lived up to our core values, which is related to the pay setting system. New goals are set during this conference and to reach them, individual developmental needs are reviewed and an individual skills development plan prepared.

For both salaried employees and wage-earners, skills development largely involves job rotation and active on-the-job learning. In addition, we work with methods aimed at developing the experience and expertise that employees acquire, while ensuring a constant sharing of experience. By doing so we mobilize the expertise found at JM at the same time that major opportunities are provided for our employees to broaden their expertise and grow in their roles.

JM mainly meets requirements for managers and leaders through internal recruitment, which provides good opportunities for individual development within the company, while retaining knowledge of "the business".

All JM managers also have the task of identifying future managers at an early stage, which facilitates adaptation of skills development initiatives to a future role as manager. At the same time it is crucial for JM's success that we also work throughout the Group to ensure the continued supply and growth of future leaders.

JM ACADEMY

In 2007 the JM Academy was founded to ensure that JM's employees develop the skills necessary to achieve JM's goals. At the same time we defined the managerial and employee skills that we need to be able to live and act in accordance with our core values. We follow up and assess our managers with respect to these management skills in performance appraisals, at a development center and in an employee survey. There is a direct link between the skills assessment in the performance review and pay setting.

Training programs designed specifically for JM employees are gathered within the framework of the JM academy. One of these programs is JM's leadership development program, which covers 450 managers and leaders and takes place in four steps:

1. "New manager at JM"

Basic training programs to ensure that new managers at JM have basic knowledge of issues such as employee performance appraisals and labor law.

2. "Leadership at JM"

Basic leadership training course focusing on the conduct expected of leaders at JM and the skills leaders are expected to possess.

3. "Development Center"

Evaluation center to identify individual development needs and continued development plans for JM's leaders.

4. "My Leadership"

Individual development projects such as coaching and mentoring, which are planned based on the proposed plan in step three.

JM'S TRAINEE PROGRAM

JM has offered a three-year trainee program since 1994 to ensure its supply of skills and leaders for the future.

Everyone in the trainee program needs to acquire broad expertise in housing construction and therefore a large part of their time is spent at our job sites. The individually tailored program focuses on areas such as management, pre-construction planning, costing, sales and management, providing the trainee with a wide range of skills in JM's business and production. In addition the trainee attends supplementary programs that are customized for the role the person will have in the future.

A total of 105 employees have started the program since its inception.

JM'S COOPERATION WITH SCHOOLS

Despite this year's need to adapt the organization to current conditions, one of the most important challenges for JM's future is to be able to attract new skilled employees. In addition to our positive collaborative efforts with Sweden's biggest colleges and universities, we cooperate with several post-upper secondary schools, such as Rönninge Upper secondary school and Nackademin. JM is represented on the school steering committee and actively participates in developing the syllabus. The Construction Program trains carpenters and concrete workers and the Construction Engineering Program trains upper secondary school students for supervisory positions. JM has been involved in the practical training program at the upper secondary school for a long time and has extremely positive experience of having our employees on different levels work as supervisors, mentors and teachers.

JM continues to work on the successful collaboration with Nackademin and participates in the formulation of its course content. Nackademin is a post-upper secondary program in residential construction and contracting that began in 2002. Students in the two-year training program are offered practical training place positions at JM and many were hired by JM during the year after completing their studies.

SALARIES AND BENEFITS

About 650 of JM's managers, supervisors and a number of specialists in Sweden are covered by a performance-based salary system. The amount usually varies between one and seven monthly salaries, depending on position. Since 2001 JM has offered employees with a pensionable annual salary over ten official "base amounts" a pension plan, JM 10 Plus, with improved pension and insurance terms and conditions. JM 10 Plus pays five percentage points more in retirement benefits and guarantees both higher family pension and disability pension than traditional ITP.

JM has compensated employees for loss of income during parental leave since 2001 and commencing in 2008, this benefit is even more generous. Employees in Sweden now receive compensation for loss of income for up to twelve months of parental leave, which is eight to ten months over and above the collective agreements. The purpose is to support parents and help to achieve increased gender equality. During 2008 a total of 128 (73 in 2007) employees took advantage of this opportunity.

GENDER EQUALITY AND DIVERSITY

Today 34 percent of JM's administrative staff are women and 30 percent of its managers are women.

Swedish society is characterized by increased cultural, social and religious diversity. For JM this means more business opportunities and a chance to reach new customer groups. Increasing diversity among employees is therefore a priority for the company, which is reflected in the recruitment of new employees.

JM works with the drug prevention alliance Mentor to strengthen relationships between adults and young people — including students with immigrant backgrounds.

WORK CLIMATE

JM is a big company with the advantages of a small company, through initiatives such as short decision-making paths. It is easy to be seen and recognized at JM. A large measure of freedom also stimulates personal responsibility and development, key factors for ensuring proper use of all skills and expertise. JM has

JM'S ETHICAL GUIDELINES

Consideration for our coworkers

• We respect each individual employee
• We accept no form of discrimination or harassment, neither in our relations with our colleagues nor with people outside the company
• We look out for one another and inform a superior if a colleague is in trouble.

Responsible

• We do not risk taking short-term decisions that might weaken the value of the JM brand
• We take responsibility for keeping ourselves informed about our own activities, even if this leads to difficult decisions
• We do not accept that time and cost requirements take precedence over worker protection and a good working environment
• We do not make commitments outside our professional mandates
• We categorically do not accept theft or stealing
• We comply with current legislation as a matter of course.

Serious agreements

• We follow and respect signed contracts and agreements
• We do not accept unauthorized workers at our workplaces
• We do not accept price cartels.

Professional relationships without personal gain

• We do not act in such a way that either our counterparty or we are placed in a position of personal dependence
• We should be highly restrictive as regards gifts and benefits to and from suppliers and business partners
• We do not allow suppliers or business partners to pay for our travel and subsistence, nor does JM pay for travel and subsistence for suppliers and business partners (unless regulated by agreement)
• We do not take advantage of the company's resources for private use.

a tradition of dialogue and mutual understanding. We believe this is one reason that so few conflicts have led to disputes and negotiations at the company's work sites.

JM has clearly stated in its policy that the Group's employees shall achieve a good balance in life between work and family. JM carries out an employee survey every other year, most recently in August-September, 2007. The questionnaire mainly assessed JM's work climate, leadership and organization. A full 89 (86) percent of employees stated in the survey that they would recommend JM as an employer.

Staff turnover in 2008 was just over 10 percent (11) in Sweden and the average length of employment was about 11 years.

HEALTH AND SAFETY

The health, well-being and development of employees are paramount for JM as an employer. JM works actively with wellness programs to minimize the number of on-the-job accidents.

WELLNESS PROGRAM

Preventive care and wellness programs are essential tools for reducing sickness absence and work-related injuries. One of the

measures in this program is our exercise program for builders, with daily warm-up and stretching during working hours, which has been required at our construction sites since 2007. In addition we offer strength training, massage and physical therapy.

FOCUS ON EARLY REHABILITATION

In 2008 total sickness absence at JM in Sweden was 4.3 percent (4.6) of total time worked. The reduction is the result of an active targeted rehabilitation program that began 2006. The program's effective rehabilitation process is based on early identification of the signals of ill-health, as well as a more systematic approach to JM employees on sick leave. The focus is on reducing the need for rehabilitation interventions while shifting initiatives toward health-promoting and preventive measures. JM's rehabilitation work is based on cooperation between human resources, the responsible manager, the person on sick leave and the union. In order to strengthen occupational rehabilitation with aggressive medical rehabilitation, we have developed a partnership with a nationwide occupational health service.

JM is proactive during the rehabilitation process by initiating and financing interventions with the purpose of making it possible for the employee to stay on the job or return to work as soon as possible. These goal-oriented initiatives have time limits and are continually evaluated. Examples of treatment methods include counseling, health coaching, treatment by physical therapists and when needed vocational guidance. JM works to identify tendencies for stress at an early stage and offers coaching and counseling in an effort to prevent stress-related diseases, which are now becoming less common.

Long-term absence due to illness among craftsmen is mainly due to musculoskeletal disorders and strain-related injuries, as well as recreational and occupational accidents. During 2007– 2008 JM carried out an ergonomics project to identify underlying reasons for the occurrence of load-related pain.

After an analysis of overall ergonomic conditions, we developed an ergonomic working model to attack two problems: Load-related injuries, which result in sick leave, and Quality deficiencies, which result in heavy workloads and increased costs. The reason we are trying to deal with both ergonomic and quality problems simultaneously is that there is a demonstrable connection: the error rate increases dramatically if work is carried out under poor ergonomic conditions.

The ergonomic model, which JM will implement in 2009, consists of several activities, training programs and a follow-up system. The starting point of the development initiative is filming and analysis of difficult tasks and quality deficiencies based on the most frequent complaints from the aftermarket. Craftsmen, ergonomists, suppliers, purchasing coordinators, planners, designers and aftermarket will evaluate ergonomic conditions together to achieve the best working method.

GOOD ORDER ON THE BUILDING SITE

A safe and secure workplace is something each employee must be able to expect at work. JM has a zero tolerance position on accidents on the job and works proactively with preventive safety, through initiatives such as the "Neatness and Order check" at JM's construction sites. As part of the preventive safety program JM checks for risk management procedures, personal protective gear, neat workplaces, scheduled inspections and that appropriate permits are obtained.

The occupational accident rate (number of occupational accidents causing at least one day of sickness absence for 1 million worked hours) was 10.5 for both administrators and craftsmen. For craftsmen alone, the figure was 20.1. The number of occupational accidents with at least one day of sickness absence in 2008 was 36.

ID06 — General Provisions on the obligation to provide ID and attendance registration — is part of the construction industry's campaign to deal with illegal workers and economic crime. JM began to implement ID06 in autumn 2007 and will continue implementation during 2009.

ABSENCE DUE TO ILLNESS—SWEDEN
%	2008	2007	2006
Total sickness absence	4.3	4.6	5.4
Sickness absence during consecutive period of at least 60 days/total sickness absence	50	47	51
Sickness absence, women	2.4	3.3	4.0
Sickness absence, men	4.7	5.0	5.6

EMPLOYEES—GROUP
	2008	2007	2006
Number of employees as at Dec. 31	2,365	2,415	2,243
– number of white collar employees	1,243	1,214	1,122
– number of craftsmen	1,122	1,201	1,121
Average age, salaried employees	43	43	44
Average age, wage-earners	40	39	40
Percentage of college graduates among salaried employees	26	26	26
Percentage of women among salaried employees	34	32	32

AVERAGE NUMBER OF EMPLOYEES BY COUNTRY 2008 2007 2006 Sweden 2,180 2,067 1,943 Norway 294 262 297 Denmark 31 31 30 Finland 12 9 0 Belgium 16 16 16 Total 2,533 2,385 2,286

Jonas Nyqvist has been site manager for a project at Långbro in southern Stockholm since 2007. After many years in the industry, he knows what's most important: satisfied customers.

Jonas has completed a JM training program and is now a certified site manager. Over the past year he has shared his experience by serving as coach for two people who are training to become certified supervisors. It was a fun job that helped him develop in his own role as manager.

"As site manager it's my job to make sure that we build the homes that were planned with the right quality, that we have the right tools and that we have a safe and secure

"It's always fun to work on a new project that you get to build from start to finish"

workplace. At most, we've been about fifty craftsmen and six administrators working on the project. It's essential to create team spirit at the construction site — even with our subcontractors," says Jonas.

The craftsmen have the opportunity to influence working methods and material choices based on their experience, together with pre-construction managers and project managers. Jonas sees the advantages of striving to achieve common working methods for all projects. The job is easier and the results are better with structured planning. You get time to work on methodology in production, such as producing homes with as few defects as possible. The objective is for production personnel to participate in project development at an early stage to contribute with their experience.

Now all of the customers have moved in to the building for which Jonas and his team were responsible in Långbro and he is proud of the fact that they are satisfied, which can be seen in the customer survey carried out at the end of the year. Soon it will be time for Jonas to move on to the next project in southern Stockholm, where he will work with a team with some new members.

"It's always fun to work on a new project that you get to build from start to finish," says Jonas.

Controlled risktaking essential for good profitability

Making well balanced risk assessments is extremely important for a project development company, where risk management and value creation are strongly linked.

The goal for a project developer is to identify and acquire land at an early stage that can be developed, and then to produce and sell residential units in a manner that optimizes customer values, revenues and costs. Throughout this entire process the project developer faces a number of risks that, if handled correctly, contribute to improved profitability.

JM's main risks can be attributed to macroeconomic risks such as substantial and lasting interest rate hikes, a global economic downturn, increased unemployment in JM's main markets and stronger competition. These factors pose risks for the revenue level of our projects. If the structure of the building rights portfolio is not ideal the result could be lost opportunities or elevated costs, thus posing another significant risk. Risks associated with implementation are now considered to be lower after the focused work in recent years with oversight and control.

In 2008 areas with historically lower risk have grown in importance. Problems in the financial system have meant increased liquidity risk for newly started projects and elevated valuation risk for project- and development properties on JM's balance sheet.

Risk management is an integrated part of decision-making at all levels within JM and is subject to strategic contributions from management and board. All significant business and project decisions are analyzed with regard to both risk and feasibility. Routines for project oversight, monitoring and follow-up are designed to reduce business and implementation risks.

MACROECONOMIC RISKS

ECONOMIC GROWTH

Demand for new housing is mainly affected by population growth and economic development in the individual towns and cities. The new residential units' location and attractiveness, consumer spending power, current interest rates, prices and price development on the second-hand market affect demand and the price obtained by JM.

Deteriorating national or regional growth conditions or declining employment can have a negative impact on JM. JM's strategy is to operate in areas that have the best long-term demographic and economic conditions. Demand for housing is high in many places where JM operates. However, sharply rising housing prices in recent years have increased the risk of falling prices, even though households' housing costs have not reached alarmingly high levels. Housing expenditure as a proportion of disposable income was about 22 percent for Sweden in 2007. Global economic development also affects JM, in the short term due to psychological effects, since the world's financial markets are tightly linked and changed expectations spread fast, and in the longer term because global economic changes also have an impact on the highly internationalized Scandinavian companies. In 2008 these conditions resulted in a rapidly deteriorating market situation in which all of JM's housing markets are affected by the recession.

The general interest rate situation is both a risk and an opportunity. Low interests leads to increased demand and higher prices for houses while the interest expenses on the Group's net borrowing decrease. The opposite therefore applies when interest rates are high. The prevailing interest rate situation also affects return requirements and valuations in connection with property sales and acquisitions. A lower interest rate leads to a lower required rate of return and a higher price.

JM tries to meet macroeconomic risks primarily by ensuring a clear demand for planned housing projects. A certain number of residential units must already be sold or reserved before production starts. By starting large projects in a number of phases, prices can be adapted to the prevailing market situation. Through continuous monitoring of the business environment, both internally and with the aid of external consultants, JM tries to form a wellfounded perception of trends for significant business environ ment factors.

Efficiency measures in order to reduce production costs are another way to reduce business risks. In this way slack demand and falling prices do not need to have a full impact on earnings. An important component of JM's efforts to cut costs is the pre-construction procedure introduced for apartment blocks in 2003 and for single-family homes in 2004. These procedures involve a more industrial way of working and production methods. They have also made it possible to increase savings with respect to production costs. In 2008 work with preconstruction procedures was expanded to include pre-construction planning without regional production resources.

COMPETITIVE SCENARIO

JM's competitors in project development of new housing are both major national players and smaller local project development companies. Several of the large players have expressed an ambition to grow within the housing segment. The risk is that the increased competition will lead to a higher supply of housing and price pressure. JM tries to distinguish itself through its overall corporate culture, customer focus, flexibility, expertise in acquisitions, project implementation, quality profile, and marketing. The competitive situation in each local market is monitored continuously.

POLITICAL RISKS

A number of political risks are associated with housing construction. The conditions for different forms of tenure can change and affect demand for JM's housing. Political decisions related to infrastructure development as well as regional and municipal planning can have an impact on operations. JM tries to meet these risks by having detailed plans that are as flexible as possible and by deciding form of tenure relatively late. Political decisions also affect tax conditions for housing. The political climate is characterized by a willingness to increase and facilitate, not limit and obstruct, housing construction.

OPERATIONAL RISKS

RISKS RELATED TO BUILDING RIGHTS PORTFOLIO

At year-end 2008 JM had building rights corresponding to 31,000 residential units (31,000) for future production, mainly concentrated to metropolitan areas and university and college towns.

The risk that JM has too few or too many building rights or that the building rights are in the "wrong" area, can lead to lost opportunities and high costs. As was already mentioned, it is essential that land for development and planned housing is in attractive locations in places with high demand for new housing. It must also be possible to develop the land in accordance with JM's requirements for profitability and return.

What and how much can be built, and when housing starts can take place, depends on planning work and cooperation with the municipality. The risk that after acquisition JM does not obtain a detailed plan that has gained legal force (a detailed plan approved by the municipality through a political decision) within the prescribed period may result in increased costs and/or reduced revenues. With its extensive experience of project development and long-term relations with the municipalities, JM can reduce these risks.

In order to reduce tied-up capital and risks JM tries to have building rights available through option agreements or conditional acquisitions; for example, the acquisition may be subject to an approved detailed plan. At year-end 2008, 10,900 building rights (11,800) were available for future production through such agreements. It is also possible to separate and sell development land from acquired land without affecting the number of available building rights. In addition to the risk of less than optimal capital structure, too much capital tied up in building rights also entails assessment risk relating to both market value and the risk of write-downs. Historically, JM has been successful in identifying and developing areas where people want to live. At the end of 2008, 54 percent of residential units in JM's ongoing production were sold or reserved. One explanation is that JM works in close co-operation with potential home buyers so that planned projects will meet demand.

IMPLEMENTATION RISKS

Major projects can correspond to order values of several billion Swedish kronor and it is important that both pre-construction and production are carried out according to plan. Inadequate planning and analysis can lead to delays, increased costs and insufficient customization. There is also a risk that the pre-construction process does not simultaneously focus on customer values, revenues and costs. In order to reduce implementation risks, JM introduced stricter routines for monitoring, oversight and control. Defined decision points precede the start of pre-construction, sales and production. No project can start without a decision from business unit management or Executive Management or, for major projects, by the Board. For more information see page 85, Corporate Governance Report.

UNSOLD UNITS

JM acts to ensure that all residential units are sold at final inspection.Units that remain unsold six months after final inspection are purchased by JM from the tenant-owner association and are then sold. Purchased residential units are recognized in the balance sheet as "participations in tenant-owner associations etc". At the end of 2008, JM held unsold units for a value of SEK 171m (104) in the balance sheet. Starting projects in phases, with requirements for a specific level of sales and reservations, reduces the risk of unsold units. Phased starts also mean that JM can better match price to demand. See note 18, page 63.

COST CONTROL AND INTERNAL OVERSIGHT

In recent years JM has taken a number of measures to improve internal oversight and cost control. Most production costs are related to project development of housing in Sweden and were about SEK 6.8bn for 2008.

In order to ensure quality requirements and production competence and contribute to effective cost control, JM maintains some construction contractor resources. Internal production resources are limited, which makes JM dependent on subcontractors' cost trend. In general, resources are contracted well ahead of time which means that JM's cost situation is usually

MANAGEMENT OF SIGNIFICANT RISKS
Risk factor	Risk	Management
Significant interest rate hike Global economic downturn Increased unemployment in JM's markets Changes in regional prospects for growth	Reduced demand, need for price reductions	Production does not start until a certain proportion of units in the project are sold or reserved Internal efforts to reduce costs Product range in several price bands Business environment monitoring and market analysis
Increased competition	Increased supplies, price pressure	Business environment monitoring and market analysis Decision gates in connection with important project decisions Continuous efforts to maintain competitiveness in every respect
Structure in building rights portfolio not optimized	Reduced demand, need for price reductions, valuation of building rights	Strategic acquisition planning Business environment monitoring and market analysis Continuous evaluation of asset structure
Pre-construction not simultaneously focusing on customer values, revenues and expenses	Reduced demand, need for price reductions	Market analysis, high-quality extensive surveys Broad compilation of skills in the project Requirement for skills development
Adopted detailed plan delayed and/or changed	Increased costs, decreased revenues	Clear requirements on formulation of pre-construction and building permit documents Quality assurance of building permit applications Long-term relations and close collaboration with the involved bodies Acquisition on condition that the local plan gains final approval
Difficulty for the banks to provide JM and its customers with financing	Limited financing for production and for JM's customers means lower sales and fewer housing starts	Long-term relationships and close collaboration with banks and other financing institutions

under control. The number of projects, volume, development phase and utilization of subcontractors vary from year to year.

Sensitivity analysis, various cost categories, project development housing

Category	Share of costs %1)	Change %	Effect, SEKm
Salaries/wages	15	+/–10	+/–100
Material	14	+/–10	+/– 98
Land	9	+/–10	+/– 61
Developer's costs	13	+/–10	+/– 87
Pre-construction	4	+/–10	+/– 30
Overhead	6	+/–10	+/– 39
Subcontracting	39	+/–10	+/– 263

1) Share of cost base, project development of housing in Sweden was about SEK 6.8bn 2008.

Land refers to the acquisition cost for land. Developer's costs are costs not directly related to contracting, such as interest on loans, municipal connection charges and registration of title. Pre-construction mainly relates to costs for technical consultants. Overhead refers to incidental expenses for setting up the building site and rent for fixed assets such as machinery.

FINANCIAL RISKS

FINANCIAL FUNCTION

JM's finance unit handles the Group's short- and long-term financing, liquidity planning, cash management and financial risk management. The division of responsibility, organization and control of the Group's overall financing activities are regulated by a finance policy established by the Board.

FINANCIAL POLICY

The finance policy specifies the objectives for finance operations, overall responsibility and specific rules and limits.

The objectives for the finance operations are to:

• Support operating activities in residential and commercial project development
• Optimize use of capital and cash flow management
• Control and manage the financial risks to which JM is exposed.

FINANCE STRATEGY

JM's basic finance strategy is to clearly link cash flows from projects in progress and project properties to the company's borrowing and interest rate risk management. This strategy provides the best control of financial risks. In order to maintain flexible administration and cost-effective debt management, existing loan agreements are guaranteed by JM's excellent creditworthiness, which means that no mortgage deeds are provided.

FINANCIAL RISKS

The Group's financial risks primarily consist of interest rate risk, financing-, liquidity- and, to a limited extent, currency risk. The choice of maturities and fixed interest spread is governed by several factors; capital tied up in ongoing projects, business risk, anticipated dates for sale of properties, terms of leases in project properties and the Group's financial position in general. These factors are summarized in the Board's guidelines for fixed interest spread and maturity structure with scope for deviations within certain limits based on current market situation. There are rules for handling interest rate risk in building loans during the construction period and recommendations for final financing of tenant-owner associations.

Cash is usually kept at a low level and any surplus liquidity may only be invested in Swedish banks and in Swedish fixed-income securities without currency risk. Payment preparedness is maintained through overdraft facilities and committed credit lines.

At the end of 2008 JM engaged in special management of the liquidity supply to residential projects, which has been a limiting factor for new housing starts.

Currency risk on transactions is eliminated as far as possible. Transaction volumes in foreign currency between JM AB and subsidiaries, and to external suppliers, are very limited. Hedging of balance sheet exposure is selective. Derivative instruments may only be used in order to minimize risks.

SENSITIVITY ANALYSIS—RESIDENTIAL BUILDING RIGHTS

One way to reflect the dynamics in the building rights portfolio is to perform a sensitivity analysis where all anticipated cash flows from the portfolio are calculated at present value. The analysis includes a number of simplified assumptions designed to reveal the present value of JM's building rights portfolio, at a number of assumed sales prices. 31,000 building rights are evenly distributed over a nine-year production period. The initial investment is excluded since the calculation is intended to show the value of the portfolio. Conditional acquisitions are handled as if payment for acquisition takes place simultaneously with invoicing to future homeowners. JM's standard residential unit is assumed to be 85 square meter, the assumed tax rate is 26.3 percent and the discount rate is 6.5 percent. The calculation does not take possible inflation into account and is not a forecast.

The table shows the assumed revenue and project expenses per square meter of apartment space excluding VAT. If a specific revenue or project expense per square meter is assumed to apply to the entire building rights portfolio, a value is created, expressed as present value. The analysis shows a strong leverage effect in value creation depending on the company's ability to manage both revenues and expenses effectively, and not least the general trend for house prices during the period. A price or cost change of SEK 1,000 per square meter corresponds to about SEK 1,400m, or almost SEK 17 per share according to the basis for this calculation. The table's present value excludes cash flows attributable to utilization of previously recognized land (SEK 5,540m) in conjunction with housing starts and settlement of notes payable (SEK 1,140m). The present value of these cash flows amounts to about SEK 3,100m.

Sensitivity analysis, present value, SEKm — building rights portfolio/housing
-------------------------------------------------------------------------------	--	--

Revenue/m2, SEK	22,000	23,000	24,000	25,000	26,000
Cost/m2 , SEK
17,000	7,200	8,600	10,100	11,500	13,000
18,000	5,800	7,200	8,600	10,100	11,500
19,000	4,300	5,800	7,200	8,600	10,100
20,000	2,900	4,300	5,800	7,200	8,600
21,000	1,500	2,900	4,300	5,800	7,200

Sensitivity analysis, present value, SEK/share for JM's building rights portfolio/housing

Revenue/m2, SEK	22,000	23,000	24,000	25,000	26,000
Cost/m2 , SEK
17,000	87	103	121	138	156
18,000	70	87	103	121	138
19,000	52	70	87	103	121
20,000	35	52	70	87	103
21,000	18	35	52	70	87

CONTENTS	PAGE
BOARD OF DIRECTORS' REPORT	41
CONSOLIDATED INCOME STATEMENT	45
CONSOLIDATED BALANCE SHEET	46
CONSOLIDATED CASH FLOW STATEMENT	48
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	50
NOTES—GROUP	51
INCOME STATEMENT AND CASH FLOW STATEMENT—PARENT COMPANY	67
BALANCE SHEET—PARENT COMPANY	68
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY—PARENT COMPANY	69
NOTES —PARENT COMPANY	69
FIVE-YEAR OVERVIEW— GROUP	72
QUARTERLY OVERVIEW— GROUP	74
QUARTERLY OVERVIEW—BUSINESS SEGMENTS	75
PROPOSED DISPOSITION OF EARNINGS	76
AUDITORS' REPORT	77
DEFINITIONS AND GLOSSARY	78

The Board of Directors and the President of JM AB (publ), Company reg. no 556045-2103, hereby submit the annual accounts and consolidated accounts for 2008.

SUMMARY GROUP

MARKET, SALES AND HOUSING STARTS

Demand for newly built homes has weakened during the year in all of JM's main markets. Demand continues to be weak in southern and western Sweden, as well as in Norway and Copenhagen. The financial turmoil and liquidity problems in the Swedish banking system have also resulted in a clearly guarded stance from our customers in Stockholm, during the second half of 2008. Consequently, conditions are not right for starting new projects. The ability of the banking system to handle the supply of liquidity for new projects continues to be a limiting factor. Demand in the short-term is also weaker due to the clear slowdown of the economy.

The number of sold residential units in the form of signed contracts totaled 1,871 residential units (3,880) and the percentage of sold or reserved residential units in relation to ongoing production continues to decline and is below normal levels. The reservation rate also declined due to cancellation of previously booked reservations at a higher level than in the past. JM Residential Stockholm sold 1,061 (1,907) homes, JM Residential Sweden 564 (1,502) and JM International 246 (471). JM International's decreased sales can mainly be attributed to continued low demand in Norway.

Number of housing starts totaled 1,829 residential units (4,065) including 973 (1,820) in the Stockholm area and 597 (1,515) elsewhere in Sweden. Housing starts in international operations totaled 259 (730).

INCOME, OPERATING PROFIT AND OPERATING MARGIN

Consolidated income for the year fell 4 percent to SEK 12,229m (12,731), mainly due to the lower level of housing starts in 2008. Operating profit fell to SEK 1,083m (2,301) and operating margin decreased to 8.9 percent (18.1). Writedowns of SEK 320m for development properties were charged against the operating result, primarily located in Copenhagen and Stockholm. Costs related to staff cutbacks of SEK 70m were charged against fourth quarter earnings.

In addition to write-downs for development properties, operating profit and margin are lower due to the persistently low level of sales and housing starts at JM Residential Sweden and JM International. The results for JM Residential Stockholm also weakened due to weaker demand. Operating profit for the second half of the year also deteriorated due to the expected negative impact of the financial crisis on future demand and prices for our residential units, because results are calculated using the percentage of completion method based on quarterly updated forecasts for the projects. In addition, costs arose during the fourth quarter for reorganization and termination of projects on those markets where we established a winter survival strategy. The net of negative and positive revaluation effects for residential projects during the fourth quarter is SEK –90m, to be compared with what is usually a positive effect in a stable or rising market. Most revaluations during the fourth quarter are attributable to expected lower evaluations of income for ongoing projects.

During the period JM sold properties for SEK 748m (653) with capital gains of SEK 73m (182). Rental income from JM's project properties totaled SEK 117m (82), with residential properties accounting for SEK 49m (51). Net operating income totaled SEK 17m (24).

INCOME

Consolidated income in 2008 fell to SEK 12,229m (12,731), mainly due to the lower level of housing starts in 2008. JM Residential Sweden and JM International are responsible for the entire reported reduction in income.

OPERATING PROFIT

Consolidated operating profit decreased by more than 50 percent to SEK 1,083m (2,301) in 2008. This result includes gains from property sales of SEK 73m (182) with a charge of SEK 320m (0) for write-downs of development properties.

The JM Residential Stockholm business segment's operating profit fell to SEK 920m (1,236) and operating margin narrowed to 17.3 percent (23.7). The decreased profit and margin is attributable to the downturn in demand and sales as well as to write-downs of development properties.

Operating profit for JM Residential Sweden decreased to SEK 197m (685) and operating margin fell to 6.0 percent (17.1). The large reductions in profit and margin are attributable to the downturn in demand and sales, as well as to write-downs of development properties.

Operating profit for JM International declined to SEK –176m (178) and operating margin fell to –8.6 percent (6.6). The decreased profit can be attributed to the weak demand and persistent lower level of sales and housing starts, as well as to write-downs of development properties. The winter survival strategy in Denmark and Finland together with the worsened market conditions for all foreign units, entail revaluation with negative effects on both income and expenses.

Operating profit for JM Property Development declined to SEK 75m (162). The lower profit is mainly due to lower gains from property sales. Gains from property sales during the year totaled SEK 74m (165), of which the sale of the property port folio at Älta, Nacka, accounts for SEK 33m. Net operating income for project properties was SEK 14m (22) and contracting revenues from production amounted to SEK 19m (2).

Operating profit for JM Production increased to SEK 124m (89) and the operating margin was 6.2 percent (6.9). The business segment continues to have strong orders.

BUSINESS SEGMENT		Income		Operating profit 1)		Operating margin, %
SEKm	2008	2007	2008	2007	2008	2007
JM Residential Stockholm	5,317	5,217	920	1,236	17.3	23.7
JM Residential Sweden	3,263	4,011	197	685	6.0	17.1
JM International	2,058	2,685	–176	178	– 8.6	6.6
JM Property Development	213	91	75	162
JM Production	2,008	1,296	124	89	6.2	6.9
Elimination	– 630	– 569	-	-
Group-wide expenses	-	-	– 57	– 49
Total	12,229 12,731			1,083 2,301	8.9	18.1
1) Including write-downs on properties			–320	-

FINANCIAL INCOME AND EXPENSES

Financial income and expenses totaled SEK –31m (– 4), a worsen ing of SEK 27m compared with the previous year, mainly attributable to increased interest-bearing liabilities.

PROFIT BEFORE TAX

Net profit before taxes was SEK 1,052m (2,297), a decrease of more than 50 percent compared with 2007.

PROFIT FOR THE YEAR

Profit for the year was SEK 818m (1,665). Total tax expense was SEK –234m (–632) including current tax of SEK –82m (–242) and deferred tax of SEK –152m (–390). Tax expense for 2008 is less than the nominal tax rate for the Group, which can mainly be explained by revaluation of the deferred tax and lower deferred tax due to the lower tax on income in Sweden beginning in 2009. A charge of SEK 23m (20) was taken against earnings for property tax, which is treated as an operating expense.

OPERATIONS

BUILDING RIGHTS

JM's available building rights remain unchanged at 31,000 residential units (31,000) including 20,100 residential units (19,200) recognized on the balance sheet. This means that 10,900 building rights (11,800) are controlled by agreement and are not recognized as assets. Capital tied up in building rights (development properties on the balance sheet) for residential units rose to SEK 5,540m (5,171) at year-end. JM acquired development properties for residential units worth SEK 1,570m (2,094) during 2008.

The biggest acquisitions include Järva, Solna for SEK 330m, central Lund for SEK 197m, property on western Kungsholmen in Stockholm for SEK 129m, Telefonplan in southern Stockholm for SEK 124m, property in western Lund for SEK 60m, Hornstull in central Stockholm for SEK 55m and Staffanstorp in Skåne for SEK 47m. JM International reports acquisitions for a total of SEK 422m, the biggest of which was a property in central Oslo for SEK 96m.

TOTAL NUMBER OF RESIDENTIAL BUILDING RIGHTS (including rights carried in the balance sheet as development properties)

		2008		2007
JM Residential Stockholm	12,200	(8,200)	12,300	(8,100)
JM Residential Sweden	11,000	(6,800)	10,700	(6,200)
JM International	7,800	(5,100)	8,000	(4,900)
Total about		31,000 (20,100)	31,000	(19,200)

In addition the JM Property Development business segment has access to building rights for commercial project development, including building rights for rentals equivalent to about 64,000 square meters with a total carrying amount of SEK 80m (111). Valuation of JM's total development properties with a carrying amount of SEK 5.6bn (5.3), including commercial building rights of SEK 0.1bn (0.1), indicate a surplus value of SEK 1.7bn (2.8). This valuation was carried out in cooperation with independent appraisal companies. An internal evaluation of the projects then serves as the basis for the write-down of development properties of SEK 320m. The write-down is related to several properties, mainly located in Copenhagen and Stockholm. JM acquired development properties during 2008 for a total of SEK 1,571m (2,130). Net investments in development properties totaled SEK 608m (840), after which holdings amount to SEK 5,620m (5,282). These holdings are essential for JM's residential development projects.

PROJECT PROPERTIES

Rental income from JM's project properties totaled SEK 117m (82), with residential properties accounting for SEK 49m (51). Net operating income totaled SEK 17m (24).

In 2008 JM sold properties for a total of SEK 748m (653) with a capital gain of SEK 73m (182). Major property sales during the year include the entire property portfolio in Älta, Nacka municipality, for SEK 477m, with gains of SEK 33m, as well as residential properties on Lidingö for SEK 57m, with gains of SEK 18m. There are no vacancies in JM's housing stock.

				Occupancy
2008-12-31	Market value, SEKm	Carrying amount, SEKm	Area (000) m2	rate annual rent, %
Residential properties (leasehold)	139	137	8	99
Properties under development	438	410	70	93
Fully developed commercial properties	92	67	6	92
Total project properties	669	614	84	93

Investments and acquisition of project properties totaled SEK 314m (319).

FINANCIAL ITEMS INTEREST-BEARING LIABILITIES AND AVERAGE INTEREST RATES

As at December 31, 2008, interest-bearing net receivables amounted to SEK 842m (–1,313) after redemption of shares and dividends for a total of SEK 1,481m. At year-end non interest-bearing liabilities for implemented property acquisitions amounted to SEK 380m (1,580). Approximately SEK 109m (about 600) of these liabilities are short-term.

Total interest-bearing loans as at December 31, 2008, amounted to SEK 1,964m (760), including pension liabilities of SEK 513m (499). At year-end the average interest rate for the total loan stock including pension liability was 4.9 percent (4.6). The average fixed-interest period for the Group's loan stock, excluding the pension liability, was 1.0 years (0.4).

CASH FLOW

Cash flow from operating activities, which include the purchase and sale of properties, totaled SEK 101m (1,826). The change is mainly attributable to increased investments in development properties and fewer projects in which production has begun. Settlement of deferred payments relating to acquisitions of development properties had a negative impact on cash flow, with a net change of about SEK 350m (about 600).

Cash flow before change in operating capital was SEK 1,232m (1,828).

Change in cash flow from property development (project properties) had a negative impact of SEK –91m (82).

LIQUIDITY

The Group's available liquidity was SEK 3,911m (4,861). Aside from cash and cash equivalents of SEK 1,111m (2,061) this includes unutilized overdraft facilities and credit lines totaling SEK 2,800m (2,800) where credit agreements for SEK 2,400m have an average maturity of two years.

EQUITY

Consolidated shareholders' equity as at December 31, 2008, was SEK 3,241m (3,893). Share capital totaled SEK 83m (89), other paid-up capital SEK 760m (750), and reserves SEK 44m (24). Undistributed earnings totaled SEK 2,354m (3,030) including profit for the year of SEK 818m (1,665).

In 2008, a capital transfer to shareholders was made through a redemption of shares for SEK 992m and a regular dividend of SEK 489m.

The equity ratio was 32 percent (39).

HUMAN RESOURCES

The number of employees decreased during 2008 by 2 percent and amounted at year-end to 2,365 (2,415). The number of wage-earners was 1,122 (1,201) and the number of white collar employees 1,243 (1,214). The average number of employees during the year was 2,533 (2,385) including 353 (318) employed abroad. Wages, salaries, and social security expenses totaled SEK 1,566m (1,419) of which social security expenses accounted for SEK 480m (437). Most of the announced job cuts involving 590 employees will be carried out during the first half of 2009.

ENVIRONMENTAL WORK

How JM treats the environment today will leave its mark long into the future. Environmental initiatives require a businesslike approach in the short and long term, providing long-term value growth for owners as well as added value for customers, such as lower operating costs. JM's environmental work is continuously developed using operations systems, measurable targets and environmental training programs, with follow-up through nonconformity and key figure reports, as well as with internal audits. High-priority environmental issues include low energy consumption in housing, environmentally approved building materials, ecocycle-based construction waste management, environmentally sound procurement of transports and excavation work, as well as decontamination of soil.

WORK OF THE BOARD DURING 2008

The 2008 Annual General Meeting elected eight ordinary members, as well as two employee representatives and two deputies.

The Board of Directors held fourteen meetings, three of which were by telephone and three per capsulam. In addition the Audit Committee held four meetings, the Remuneration Committee four meetings and the Investment Committee five meetings. The most important issues for the Board during 2008 were the major acquisitions of development properties, strategic plan, redemption program, long-term incentive program and the matter of personnel cutbacks to be carried out during the year. The Board members' participation can be seen in the chart on page 81. The duties of the Chairman of the Board are estimated at 50 working days per year and for external Board members approximately 20 working days per year, including committee work. Each year the Chairman of the Board evaluates the work of the Board with the Directors and reports the results to the Nomination Committee. A description of Committees and Directors can be seen on pages 81–82.

MEASURES TO DEAL WITH THE WORSENED ECONOMY

JM has taken a large number of measures to deal with the sharp economic downturn that is now a fact. The worsened employment situation in particular has had a negative impact on the housing market. In order to adapt the operation to the weakened market JM has unfortunately been forced to lay off a large number of employees. JM is now also extremely restrictive about acquiring development properties, while giving priority to caring for the balance sheet and freeing cash flow. Consequently, our building rights are also being used for production of rental housing for external parties as a component in our strategy to bridge the period until the market for tenant-owned housing stabilizes.

We also launched an extended security package for our home buyers in Sweden dealing with dual residence insurance and access protection. The projects are also being adapted in terms of costs to be able to offer buyers lower prices. In foreign operations and certain segments in Sweden we have greatly reduced capacity while waiting for the market situation to normalize. At the same time we continue to refine our building rights portfolio to meet improved demand in the future.

CAPITAL STRUCTURE

The Group's equity/assets ratio is 32 percent. The implicit equity/assets ratio, assuming netting of cash and cash equivalents of SEK 1,111m for liabilities for property acquisitions, is 36 percent. The balance sheet is also strong based on an updated calculation of JM's capital allocation model with a significant surplus of venture capital that continues to confirm a good financial position.

DIVIDEND

Despite a strong balance sheet and good earning capacity in the long run, the Board will propose a dividend of SEK 0 per share (5.50) for 2008. The supply of liquidity from the banking system for startup of new projects must normalize before it can be considered fundamentally sound to strip liquidity from the company.

REPURCHASED SHARES

On December 31, 2008 JM's share capital amounted to SEK 83m, represented by 83,401,883 shares, including 185,000 repurchased shares. All shares carry equal voting rights and equal rights to a share of the company's equity.

The 2008 Annual General Meeting resolved to authorize the Board to resolve on one or more occasions, though not extending past the Annual General Meeting in 2009, about the acquisition and transfer of the Company's own shares to hedge the financial risks of the 2008 Share Match Program and 2008 Performance Share Program. During the year 150,000 shares were repurchased at a price of SEK 103.30 per share.

REMUNERATION TO EXECUTIVE MANAGEMENT

The Board of Directors' proposal for resolutions on guidelines for salary and other remuneration to senior executives can be seen below. The proposal will be presented for approval at the Annual General Meeting. The guidelines are the same as those adopted at the 2008 Annual General Meeting with the addition that the objectives for the short-term incentive program were specified as follows: "which is usually the externally reported operating profit before tax, earnings per share and Customer Satisfaction Index." In addition an amendment was made stating that the long-term incentive program can also be cash-related and, at the time of commitment, be capped at 30 percent of fixed salary. The new agreement with senior executives since the 2008 Annual General Meeting has followed the guidelines that are now in effect. A few senior executives have older agreements entitling them to retirement at age 60; please see note 3, Employees and payroll expenses, page 56.

PROPOSAL FOR 2009 RESOLUTIONS ON GUIDELINES FOR SALARY AND OTHER REMUNERATION TO SENIOR EXECUTIVES:

The Board of Directors proposes that the Annual General Meeting approve the following guidelines for salary and other remuneration to senior executives. Compensation to the CEO and other senior executives shall consist of fixed salary, short-and long-term incentive schemes, pension benefits and other benefits. "Other senior executives" refers to Executive Management. Total compensation must be at market rates and competitive in the labor market in which the executive works. Fixed salary and short-term incentive schemes will be related to the executive's responsibilities and authorities. The shortterm incentive scheme for senior executives will be limited to seven monthly salaries. The short-term incentive scheme will be based on performance in relation to established targets, which is usually the externally reported operating profit before tax, earnings per share and Customer Satisfaction Index. Longterm incentive program can be equity- and/or cash-related and will be performance-based and, at the time of commitment, be capped at 30 percent of fixed salary. Termination of employment is normally subject to a mutual period of notice of six months. If notice of termination is given by JM, severance pay equivalent to six months' salary should also be payable. Pension benefits shall be either defined benefit or defined contribution, or a combination thereof, and the normal retirement age is 65. The Compensation Committee will draft and the Board of Directors will approve the remuneration policy for the CEO and senior executives. The Board shall have the right to depart from the guidelines if extenuating circumstances are present in the individual case.

PARENT COMPANY

The Parent Company's core business is project development of residential and commercial properties.

Net sales in 2008 for the Parent Company amounted to SEK 8,702m (9,397). The Parent Company's profit before appropriations and tax was SEK 1,560m (1,714). Investments in properties totaled SEK 435m (1,339). Average number of employees was 1,719 (1,680). Wages, salaries, and social security expenses totaled SEK 1,086m (992). An account of the number of employees and payroll expenses is provided in the Parent Company's notes, note 2, page 69.

CONSOLIDATED INCOME STATEMENT, SEKm	Note	2008	2007
	1
Income	2	12,229	12,731
Costs for production and management	3, 4	– 10,180	– 9,939
Gross profit		2,049	2,792
Selling and administrative expenses	3, 4, 5	– 719	– 673
Gains on the sale of properties	6	73	182
Write-downs on properties	7	– 320	-
Operating profit	2	1,083	2,301
Financial income	8	88	55
Financial expenses	8	– 119	– 59
Profit before tax		1,052	2,297
Taxes	9	– 234	– 632
Profit for the year		818	1,665
Attributable to:
Shareholders of the Parent Company		818	1,665
Earnings per share, basic and diluted, (SEK) attributable
to shareholders of the Parent Company	10	9.50	18.30
Proposed dividend per share (SEK)	10	0	5.50

NOTES

INCOME SEK – 502m

(2008: SEK 12,229m, 2007: SEK 12,731m) Income decreased by a total of 4 percent. The reduction in income can mainly be explained by the lower level of housing starts.

Income mainly consists of recognized revenues in projects. Recognized revenues are reported according to the percentage of completion method, which means that income is recognized based on the most recent forecast, period by period, as each project is completed and sold.

Forecasts adjusted downwards for total income in ongoing projects have therefore resulted in a reduction in income for the year, according to the percentage of completion method.

OPERATING PROFIT SEK –1,218m

(2008: SEK 1,083m, 2007: SEK 2,301m) Gross profit fell 27 percent, from SEK 2,792m to SEK 2,049m. Operating profit was down 53 percent. Writedowns of SEK 320m for development properties, primarily in Copenhagen and Stockholm, were charged against operating profit. Costs that arose due to the reorganization and termination of projects in markets where the winter survival strategy was established also had a negative impact on the result.

In 2008 JM sold properties for SEK 748m (653) with gains of SEK 73m (182), for which gains from sales of the entire property portfolio in Älta, Nacka Municipality, totaled SEK 33m.

FINANCIAL INCOME

AND EXPENSES SEK – 27m (2008: SEK – 31m, 2007: SEK – 4m)

Net financial items worsened by SEK 27m compared with the previous year. The previously non-interestbearing liability for the acquisition of Dalénum became interest-bearing in the autumn of 2008 and contributed with financial expenses of about SEK 7m. Financial income and expenses increased during the fourth quarter mainly due to revaluation of receivables and liabilities denominated in foreign currency attributable to intercompany borrowing.

TAXES SEK + 398m

(2008: SEK – 234m, 2007: SEK – 632m) Recognized tax expense is 22 percent in 2008, compared with 28 percent for 2007. The reduction is due to revaluation of deferred tax liabilities caused by lower corporation tax from 2009 (down to 26.3 percent) and sales of subsidiaries.

Income by business segment

CONSOLIDATED BALANCE SHEET, SEKm	Note	Dec. 31, 2008	Dec. 31, 2007
	1
ASSETS	2
Non-current assets
Goodwill	11	56	60
Plant, property, and equipment	12	21	26
Participations in associates	13, 14	6	6
Interest-bearing financial assets	15	11	12
Other financial assets	15, 16	10	11
Deferred tax assets Total non-current assets	26	80 184	6 121
Current assets
Project properties	17	614	790
Development properties	17	5,620	5,282
Participations in tenant-owners' associations, etc.	18	171	104
Accounts receivable		507	439
Other current receivables	19	874	265
Prepaid expenses and accrued income		15	15
Recognized revenue less progress billings	20	959	839
Cash and cash equivalents	21	1,111	2,061
Total current assets		9,871	9,795
TOTAL ASSETS		10,055	9,916
EQUITY AND LIABILITIES	2
Equity attributable to shareholders of the Parent Company 1)
Share capital		83	89
Other paid-up capital		760	750
Reserves		44	24
Undistributed earnings (including profit for the year)		2,354	3,030
Total shareholders' equity		3,241	3,893
Liabilities
Non-current liabilities
Non-current interest-bearing liabilities	22, 23	314	216
Other non-current liabilities		271	978
Provisions for interest-bearing pensions	24	513	499
Other non-current provisions	25	166	153
Deferred tax liabilities	26	900	706
Total non-current liabilities		2,164	2,552
Current liabilities
Accounts payable		497	616
Current interest-bearing liabilities	22	1,137	45
Other current liabilities		414	771
Current tax liabilities		17	63
Progress billings in excess of recognized revenue	27	1,583	1,130
Accrued expenses and deferred income	28	890	741
Other current provisions	25	112	105
Total current liabilities		4,650	3,471
Total liabilities		6,814	6,023
TOTAL EQUITY AND LIABILITIES		10,055	9,916
Pledged assets and contingent liabilities	29

1) See Statement of changes in consolidated shareholders' equity.

Return on equity and capital employed

PROJECT PROPERTIES SEK –176m

(2008: SEK 614m, 2007: SEK 790m) The portfolio of project properties is somewhat smaller than the previous year.

Major property sales carried out in 2008 included the sale of a large property to companies in the Wallenstam Group containing 556 rental apartments, 8,500 square meters of commercial premises and about 70 building rights in Älta, Nacka municipality. The transaction will be reported with gains of SEK 33 million in 2008 with settlement date and access to the properties in January 2009. JM also sold the property Lidingö Bävern 1 to the tenant-owners' association Lidingöbävern. The purchase price was SEK 57m with gains of SEK 18m. JM made major investments in commercial premises in the Dalénum area, Lidingö, during the year for a total of SEK 119m. Major investments in senior housing were also carried out during the year.

DEVELOPMENT PROPERTIES SEK + 338m (2008: SEK 5,620m, 2007: SEK 5,282m)

The rate of acquisition of development properties was slower in 2008 compared with the previous year. During the year JM acquired development properties for SEK 1,571m (2,130), while development properties for SEK 782m (1,159) were transferred to production. The majority of acquisitions, SEK 1,570 (2,094), are development properties intended for housing. The biggest acquisitions were carried out by the business segments JM Residential Stockholm and JM Residential Sweden. Major sales of development properties during the year occurred, including development land in Göteborg and Karlstad and office building rights in Solna. Write-downs of development properties for SEK 320m, located primarily in Copenhagen and Stockholm, also arose during the year. The number of building rights on the balance sheet increased somewhat, about 900, compared with the previous year, with the majority of the increase attributable to JM Residential Sweden. In all, JM has 20,100 (19,200) building rights on the balance sheet.

PARTICIPATIONS IN TENANT-OWNER ASSOCIATIONS ETC. SEK + 67m

NOTES

(2008: SEK 171m, 2007: SEK 104m) Unsold tenant-owned apartments are purchased no

later than the settlement date and are a consequence of the undertaking in the construction contract with the tenant-owners' association. JM Residential Stockholm's holdings in particular increased during the year, for a total of SEK +69m.

CURRENT RECEIVABLES SEK + 609m (2008: SEK 874m, 2007: SEK 265m)

The balance-sheet item current receivables increased by SEK 609m, largely because receivables arise with increased property sales and in this case, primarily due to the sale of a large property portfolio to companies within the Wallenstam Group.

CASH AND CASH

EQUIVALENTS SEK – 950m (2008: SEK 1,111m, 2007: SEK 2,061m)

Cash and cash equivalents have decreased, largely because of low invoiced sales and payments for property acquisitions 2007 and earlier. Please see the notes on the consolidated cash flow statement, page 49.

SHAREHOLDERS' EQUITY SEK – 652m (2008: SEK 3,241m, 2007: SEK 3,893m)

Equity decreased compared with the previous year. Please see the comments on changes in consolidated shareholders' equity, page 50.

NON-CURRENT INTEREST-BEARING LIABILITIES SEK + 98m

(2008: SEK 314m, 2007: SEK 216m) Non-current interest-bearing liabilities increased, in part because JM's employees were invited to participate in another convertible program in 2008. As required by IAS 32, the liability and equity components are accounted for separately, which means that the debenture loan is carried on the balance sheet as a non-current interest bearing liability.

OTHER NON-CURRENT

LIABILITIES SEK – 707m (2008: SEK 271m, 2007: SEK 978m)

Other non-current liabilities decreased sharply during the year because the balance sheet items mainly contain promissory notes to finance large acquisitions of development properties. From the previous year's promissory notes, SEK 720m is interest-bearing and short-term since the fourth quarter of 2008.

DEFERRED TAX LIABILITIES SEK +194m (2008: SEK 900, 2007: SEK 706m)

The increase in deferred tax liabilities is mainly attributable to provisions for impairment losses not yet approved at the time of the tax assessment and losscarryforward.

CURRENT INTEREST-BEARING LIABILITIES SEK +1,092m

(2008: SEK 1,137m, 2007: SEK 45m) Current interest-bearing liabilities increased by SEK 1,092m. This increase is mainly due to increased borrowing at credit institutions and notes payable to finance purchases of development properties during the year; see comment for Other non-current liabilities.

OTHER CURRENT LIABILITIES SEK – 371m (2008: SEK 400m, 2007: SEK 771m)

Non-interest-bearing current liabilities decreased during the year. The reduction is primarily due to the fact that non-interest-bearing promissory notes to finance purchase development properties were redeemed during the year.

CONSOLIDATED CASH FLOW STATEMENT, SEKm Note	2008	2007
1
OPERATING ACTIVITIES
Operating profit before financial items	1,083	2,301
Depreciation and amortization	10	17
Write-downs	320	-
Adjustment for non-cash items	– 64	– 136
Sub-total, cash flow from operating activities	1,349	2,182
Interest received	82	54
Dividends received	1	1
Interest paid and other financial expenses	– 68	– 33
Taxes paid	– 132	– 376
Cash flow from operating activities before change in
working capital	1,232	1,828
Investment in development properties etc.	– 2,234	– 1,626
Payment on account for development properties etc.	1,007	1,385
Increase/decrease accounts receivable	– 69	– 10
Increase/decrease in other current receivables, etc.	– 143	112
Increase/decrease accounts payable	– 119	– 26
Increase/decrease other current operating liabilities	518	81
Cash flow before investments and sales of project
properties	192	1,744
Investment in project properties etc.	– 234	– 307
Sale of project properties etc.	143	389
Cash flow from operating activities	101	1,826
INVESTING ACTIVITIES
Investment in property, plant, and equipment	– 12	– 10
Property, plant, and equipment sold	7	0
Change in financial assets	1	3
Cash flow from investing activities	– 4	– 7
FINANCING ACTIVITIES
Loans raised	852	210
Amortization of debt	– 410	– 52
Redemption and repurchase of own shares	– 1,008	– 1,022
Dividend Cash flow from financing activities	– 489 – 1,055	– 415 – 1,279
Cash flow for the year	– 958	540
Cash and cash equivalents, January 1	2,061	1,509
Exchange rate difference in cash and cash equivalents	8	12
Cash and cash equivalents, December 31	1,111	2,061
22 INTEREST-BEARING NET LIABILITIES / RECEIVABLES
Interest-bearing liabilities and provisions	1,964	760
Cash and cash equivalents	– 1,111	– 2,061
Interest-bearing receivables	– 11	– 12
Interest-bearing net liabilities (+) / receivables (–) at year-end	842	– 1,313

OPERATING ACTIVITIES SEK –1,725m

(2008: SEK 101m, 2007: SEK 1,826m)

Cash flow from operating activities worsened to SEK 101m (1,826) mainly due to lower capital gains. Investments in development properties increased compared with the previous year. At the same time notes payable were paid, which had a net negative effect on cash flow.

Cash flow from operating activities (sub-total) SEK – 833m

(2008: SEK 1,349m, 2007: SEK 2,182m) Operating activities, before interest and tax, contributed SEK 1,349m (2,182). This represents a decrease of SEK – 833m after adjustment for gains on property sales of SEK 73m, reported under the sale of each type of property, and elimination of non-cash items. Cash flow from operating activities deteriorated compared with the previous year because of fewer project starts combined with lower margins.

NOTES

Cash flow from operating activities before change in working capital SEK – 596m (2008: SEK 1,232m, 2007: SEK 1,828m)

Net interest received and paid decreased from SEK 22m in 2007 to SEK 15m in 2008, attributable in part to increased interest-bearing liabilities and lower cash in 2008.

Taxes paid decreased from –376m 2007 to SEK –132m in 2008.

Net development properties etc. SEK – 986m (including participations in tenantowner associations)

(2008: SEK –1,227m, 2007: SEK –241m)

JM invested in new development properties for SEK 1,571m (2,130). At the same time property for SEK 781m (1,159) was taken into production in conjunction with project starts. During the year the Group increased its holdings of participations in tenant-owner associations with a negative net flow of SEK –148m (–30).

Current receivables and liabilities SEK + 30m (2008: SEK 187m, 2007: SEK 157m)

The change in current receivables and liabilities had a positive effect on cash flow of SEK 30m (415) during the year.

Net project properties SEK –173m

(2008: SEK –91m, 2007: SEK 82m) The Group increased sales of project properties by about SEK 91m, which had a positive effect at the same time that receivables for property sales increased by SEK 337m, which had an aggregate negative effect on cash flow of SEK –246m.

FINANCING ACTIVITIES SEK +224m

(2008: SEK –1,055m, 2007: SEK – 1,279m) In 2008 JM redeemed shares for SEK 1,008m (1,022). Cash flow from operating activities was also used for shareholder dividends, SEK – 489m (– 415). Interestbearing liabilities increased net with SEK + 442m (158), primarily because of borrowing in foreign operations and a new convertible loan to employees of SEK 57m.

ADJUSTMENT FOR NON-CASH ITEMS 2008 2007 Gains on the sale of properties – 73 – 182 Changes in pension liability 14 17 Other provisions etc. – 5 29 Total – 64 – 136 INVESTMENTS IN DEVELOPMENT PROPERTIES, ETC. 2008 2007 Investment in development properties – 1,571 – 2,130 Acquisition of participations in tenant-owner associations – 316 –91 Financing via promissory notes – 347 595 Total – 2,234 – 1,626 PAYMENT ON ACCOUNT FOR DEVELOPMENT PROPERTIES, ETC. 2008 2007 Payment on account for development properties 781 1,159 Sale of development properties 198 171 Change in receivables, development properties sold – 220 – 6 Sale of participations in tenant-owner associations 248 61 Total 1,007 1,385 INVESTMENT IN PROJECT PROPERTIES, ETC. 2008 2007 Investment in project properties – 314 – 319 Financing via promissory notes 75 12 Adjustment for capitalized interest 5 0 Total – 234 – 307 SALE OF PROJECT PROPERTIES, ETC. 2008 2007 Sale of project properties 550 459 Changes in receivables – 407 – 70 Total 143 389

Cash flow from operating activities

Investment in development properties, etc. Investment project properties, etc.

Cash flow from operating activities

CONSOLIDATED STATEMENT OF		Other			Total share
CHANGES IN SHAREHOLDERS' EQUITY,	Share	paid-up		Un distributed	holders'
SEKm	capital	capital	Reserves	earnings	equity
Opening balance January 1, 2007	93	750	– 43	2,790	3,590
Translation difference	-	-	67	-	67
Net sum of all entries charged or credited directly to equity	-	-	67	-	67
Net profit for the year	-	-	-	1,665	1,665
Total income and expenses for the year	-	-	67	1,665	1,732
Redemption of own shares	– 4	-	-	– 1,009	– 1,013
Dividend to equity holders of the Parent Company	-	-	-	– 415	– 415
Equity component of convertible debentures	-	-	-	7	7
Share-based payments regulated with
equity instruments Repurchase of own shares	- -	- -	- -	1 – 9	1 – 9
Closing balance, December 31, 2007	89	750	24	3,030	3,893
Opening balance, January 1, 2008 Transfer	89 -	750 7	24 -	3,030 – 7	3,893 -
Adjusted opening balance	89	757	24	3,023	3,893
Translation difference	-	-	20	-	20
Net sum of all entries charged or credited directly to equity	-	-	20	-	20
Profit for the year	-	-	-	818	818
Total income and expenses for the year	-	-	20	818	838
Redemption of own shares	–6	-	-	– 986	– 992
Dividend to equity holders of the Parent Company	-	-	-	– 489	– 489
Equity component of convertible debentures Share-based payments regulated with	-	3	-	-	3
equity instruments	-	-	-	3	3
Repurchase of own shares	-	-	-	– 15	– 15
Closing balance, December 31, 2008	83	760	44	2,354	3,241

Attributable to shareholders of the Parent Company

EQUITY SEK – 652m

(2008: SEK 3,241m, 2007: SEK 3,893m) Shareholder's equity decreased SEK 652m compared with the end of 2007. Consolidated shareholders' equity as at December 31, 2008, was SEK 3,241m (3,893), which corresponds with SEK 39 (44) per share. Return on equity is 22.9 percent (44.5).

Items charged directly to equity (translation difference)

The depreciation of the Swedish krona against the Danish krone (DKK) and the euro (EUR) entailed a positive effect of SEK 63m as translation difference for the year in shareholders' equity. The appreciation of the Swedish krona against the Norwegian krona NOK entailed a negative impact of SEK 43m as translation difference for the year in shareholders' equity. The change for the year amounts to SEK 20m (67) and the accumulated translation difference in closing equity is SEK 44m (24).

Net profit for the year

Net profit for the year was SEK 818m (1,665); please see notes to Consolidated Income Statement, page 45.

Redemption of own shares

JM carried out a redemption program of its own shares during the second quarter of 2008. According to the offer, every sixteenth share could be redeemed for a redemp-

NOTES

tion price of SEK 180 per share. A total of 5,512,425 shares were redeemed and SEK 992m was transferred to the shareholders during the second quarter. After the redemption of own shares JM's share capital was SEK 83.4m (88.9), made up of 83,401,883 shares.

Dividend to equity holders of

the Parent Company

The dividend to equity holders of the Parent Company totaled SEK 489m (415), corresponding with SEK 5.50 (4.50) per share.

Share-based payments and repurchase of shares

JM's 2008 annual meeting of shareholders approved a performance share program for senior executives in the Group. The performance share program includes the repurchase of own shares for transfer to the participants. In late May JM AB acquired 150,000 of its own shares on the OMX Nordic Exchange Stockholm for a total of SEK 15m. Share-based payments regulated with equity instruments have resulted in a charge against equity of SEK 3m.

Equity component of convertible debentures

Convertible debentures have been offered to JM employees. In accordance with IAS 32 the liability and equity components are reported separately, which means that the debenture loan is reported in the balance sheet as a liability initially with the nominal amount excluding the equity component. Equity increased by SEK 3m upon conclusion of the subscription period.

Consolidated shareholders' equity in the balance sheet is classified as follows:

Share capital

Share capital includes the registered share capital for the Parent Company.

Other paid-up capital

Other paid-up capital includes transactions with shareholders. The transactions that have occurred are new issues at a premium and correspond with capital received in addition to the nominal amount.

Reserves

Reserves include those revenues and expenses that are recognized directly in equity. They consist of translation differences attributable to translation of foreign subsidiaries according to IAS 21.

Undistributed earnings (including profit for the year)

Retained earnings (profit carried forward) including profit for the year corresponds with the accumulated total gains and losses generated for the Group.

NOTES—GROUP		PAGE			PAGE
NOTE 1 NOTE 2	ACCOUNTING AND VALUATION PRINCIPLES CONSOLIDATED INCOME STATEMENT	51	NOTE 17	PROJECT PROPERTIES AND DEVELOPMENT PROPERTIES	63
	BY SEGMENT	54	NOTE 18	PARTICIPATIONS IN TENANT-OWNER
NOTE 2	CONSOLIDATED BALANCE SHEET BY SEGMENT	55	NOTE 19	ASSOCIATIONS ETC. OTHER CURRENT RECEIVABLES	63 63
NOTE 3 NOTE 4	EMPLOYEES AND PERSONNEL COSTS DEPRECIATION ACCORDING TO PLAN	56 58	NOTE 20	RECOGNIZED REVENUE LESS PROGRESS BILLINGS	63
NOTE 5	FEES AND REMUNERATION TO AUDITORS	58	NOTE 21	CASH AND CASH EQUIVALENTS	63
NOTE 6	GAINS ON THE SALE OF PROPERTIES	58	NOTE 22	INTEREST-BEARING LIABILITIES	63
NOTE 7 NOTE 8	WRITE-DOWNS ON PROPERTIES FINANCIAL INCOME AND EXPENSES	58 58	NOTE 23	FINANCIAL RISK MANAGEMENT AND FINANCIAL DERIVATIVE INSTRUMENTS	63
NOTE 9	TAXES	58	NOTE 24	PROVISIONS FOR PENSIONS AND SIMILAR COMMITMENTS	65
NOTE 10	EARNINGS AND DIVIDEND PER SHARE	58	NOTE 25	OTHER PROVISIONS	66
NOTE 11	GOODWILL	59	NOTE 26	DEFERRED TAX ASSETS AND LIABILITIES	66
NOTE 12	ROPERTY, PLANT, AND EQUIPMENT	59	NOTE 27	PROGRESS BILLINGS IN EXCESS OF
NOTE 13	PARTICIPATIONS IN ASSOCIATES	60		RECOGNIZED REVENUE	66
NOTE 14	PARTICIPATIONS IN ASSOCIATES	60	NOTE 28	ACCRUALS AND DEFERRED INCOME	66
NOTE 15	FINANCIAL ASSETS	61	NOTE 29	PLEDGED ASSETS AND CONTINGENT
NOTE 16	PARTICIPATIONS IN GROUP COMPANIES	61	NOTE 30	LIABILITIES RELATED PARTY DISCLOSURES	66 66

NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES

Amounts in SEK million unless stated otherwise

Corporate information

These annual accounts and consolidated accounts for JM AB have been approved by the Board and the President on February 25 and will be presented for adoption at the 2009 Annual General Meeting. JM AB is a Swedish public limited company listed on the Nordic Stock Exchange, Large Cap segment. The company has its registered office in Stockholm, Sweden.

Statement of compliance with applicable rules The consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS). Since the Parent Company is an enterprise within the EU, only EU-approved IFRS will be applied. Moreover, the consolidated accounts are prepared in compliance with Swedish law through the application of the Swedish Financial Reporting Board recommendation RFR 1.1 (Supplementary Accounting Regulations for Groups). The Parent Company's annual accounts have been prepared in compliance with Swedish law and with application of the Swedish Financial Reporting Board's recommendation RFR 2:1 (Reporting for Legal Entities). This means that IFRS valuation and disclosure rules are applied with those deviations that can be seen in the section about the

Parent Company's accounting policies. Basis for preparation of the accounts

The consolidated accounts are based on historical acquisition values, with the exception of certain financial instruments. Unless stated otherwise, all amounts are specified in millions of Swedish kronor (SEKm).

Basis for consolidation

The consolidated accounts include the Parent Company and its subsidiaries. The financial statements for the Parent Company and the subsidiaries that are included in the consolidated accounts relate to the same period and have been prepared according to the accounting policies that apply for the Group. A subsidiary is included in the consolidated financial statements from the date on which the Parent Company acquires a controlling influence over the company, normally 50 percent of the votes, and is included until the date on which the Parent Company's controlling influence in the company ceases. Internal balances and profits and losses from internal transactions are eliminated.

New and changed accounting standards and interpretations

JM's accounting principles for 2008 remain unchanged compared with 2007.

Changes in effect commencing in 2008

The only essential changes in standards that became effective commencing in 2008 pertain to amendments to IAS 39 and IFRS 7 Reclassification of Financial Instruments. The amendments allow certain financial instruments to be reclassified from one category to another under specific circumstances. This change did not effect JM's accounting.

Changes in effect commencing in 2009 and approved by the EU

IFRS 8 Operating Segments

This standard contains disclosure requirements for the Group's operating segments and replaces the requirement defining primary and secondary segments for the Group based on business segments and geographic areas in accordance with IAS 14. The new standard requires information about the segment to be presented using a management approach, which means that segments will be identified on the basis of internal reports.

The new standard does not involve any changes for JM.

Revised IAS 1 Presentation of financial statements This standard divides changes in shareholders' equity resulting from transactions with owners and other changes. Reporting of changes in equity will only include details relating to owner-related transactions. Nonowner changes in equity are presented on a separate line in changes in equity. The standard also introduces the concept of "statement of comprehensive income," which shows all items relating to revenues and expenses.

Revised IAS 23 Borrowing costs

The revised version requires capitalization of borrowing costs that are directly attributable to the purchase, construction or production of an asset, which by necessity requires a significant amount of time to complete for intended use or sale.

The changed standard does not involve any changes for JM.

Changes in effect commencing in 2009 but not yet approved by the EU

IFRIC 12 Service Concession Arrangements

The interpretation applies to private sector operators that have concessions for the supply of public services and describes the accounting for the obligations they undertake and rights they receive in service concession arrangements. JM does not engage in such activities. The new standard therefore will not affect JM's accounting.

IFRIC 15 Agreement for the Construction of Real Estate

The interpretation describes when and how to report revenues and associated expenses associated with the sale of property, if there is a purchase agreement between contractor and buyer before construction is complete. Moreover, guidance is provided on whether to report the agreement in accordance with IAS 11 or IAS 18.

IFRIC 15 is expected to be approved by the EU during 2009 and will go into effect commencing in 2010. The interpretation concerns JM's main operations, residential development projects.

JM does not expect IFRIC 15 to affect accounting of its Swedish residential development projects. JM is investigating whether accounting relating to its residential development projects outside Sweden will be affected by the new interpretation.

Changes in effect commencing in 2010 but not yet approved by the EU

Revised IFRS 3 Business Combinations and revised IAS 27 Consolidated and Separate Financial Statements IFRS 3 is implementing a number of changes in reporting of Business Combinations effective from 2010, which will affect the size of recognized goodwill, reported earnings in the period that the acquisition is made and future reported earnings.

Note 1 cont'd.

According to revised IAS 27, changes in the stake of a subsidiary owned, without loss of control by the majority owner, are recognized as equity transactions. The changes in IFRS 3 and IAS 27 will affect reporting of future acquisitions, loss of control and transactions with minority shareholders.

Estimates and assumptions

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses, as well as other information disclosed. Actual results could differ from those estimates, which can be seen in particular in the field of revenue and income recognition relating to the percentage of completion method in residential projects, where reported profits and financial position for each period are based to some extent on these evaluations and assumptions.

Reporting of employee benefits/ pensions and provisions for guarantees are also largely based on evaluations and assumptions.

The value of pension commitments for defined benefit pension plans is based on actuarial calculations using assumptions about discount rates, anticipated return on plan assets, future salary increases, inflation and demographic conditions.

Provisions for future expenses due to guarantee commitments are based on calculated expenses that have historically provided a reliable provision. See also the "Write-downs" section.

Current and non-current liabilities, current and non-current assets

Liabilities and provisions in the balance sheet are reported as current or non-current. Current liabilities are debts that will be settled within twelve months of the balance sheet date; the same applies to the breakdown between current and non-current assets.

Business combinations

According to IFRS 3, the fair value of identifiable assets and liabilities in the acquired business is established at the time of acquisition. These fair values also include the percentage of assets and liabilities that are attributable to any remaining minority shareholders in the acquired business. Identifiable assets and liabilities also include assets, liabilities and provisions, including commitments and claims from outside parties, which are not recognized on the balance sheet of the acquired business. The difference between the cost of the acquisition and the acquired share of net assets in the acquired business is classified as goodwill and recognized as an intangible asset in the balance sheet.

Associated companies

Companies in which the Group has a significant influence, which is assumed when the holding amounts to at least 20 percent and not more than 50 percent of the voting rights, are reported as associates. This also assumes that ownership is part of a lasting connection and that the holding is not a joint venture. Associates are included in the consolidated accounts according to the equity method. JM's holding of associates is negligible.

Joint ventures

Companies that are not subsidiaries and which conduct operations in consortium-like forms, i.e. with joint owner ship and control, are consolidated according to the proportional method. JM's joint ventures are limited in scope.

Translation of foreign operations

All foreign group companies conduct their business activities in the local currency of the respective country, which is the functional currency of the respective company. Balance sheets and income statements are translated to the Group's reporting currency (SEK) according to the current method. According to the current method, all assets, provisions, and other liabilities are restated at the yearend rate of exchange and all items in the income statement are restated using the average rate of exchange for the year. Translation differences thus arising are transferred directly to consolidated equity, as are any translation differences in those financial instrument held to hedge these net assets. In the event of a sale of a foreign business, the accumulated translation difference is recognized in the income statement.

Receivables and liabilities in foreign currency

Transactions in foreign currencies (currency other than each company's functional currency), are reported at the conversion rate on the transaction date. Monetary receivables and liabilities in foreign currencies are valued at the exchange rate applying on the balance sheet date. Exchange rate differences are reported in the income statement.

Segment reporting

For the purpose of reporting according to IAS 14, Segment Reporting business segments and geographical segments, the Group's operations have been divided into a primary segment comprising the geographical areas Sweden and International. The Swedish operations are also divided into four business segments, JM Residential Stockholm, JM Residential Sweden (rest of Sweden), JM Property Development and JM Production, which are reported separately within the Sweden segment. JM's secondary segment comprises project development. Since there is only one secondary segment, information is provided in the income statements, balance sheets and cash flow statements. The classification into segments described above is consistent with internal control and governance at the JM Group.

Gains on the sale of properties

Sales of project properties and development properties that are not the object of project development are usually recognized on the income statement in the period during which the parties entered into a binding sale agreement. Gains from land sales in conjunction with residential development projects are included in the reporting for the entire residential project.

Revenue and profit from residential project development

Project revenues relating to contracting and residential development projects are reported in compliance with IAS 11 Construction Contracts. The Swedish Construction Federation Industry recommendation relating to the percentage of completion method for residential projects for sale applies in this case. This recommendation, which is a clarification of IAS 11, prescribes revenue recognition that is based on stage of completion multiplied by sales rate. This means that a stage of completion of 50 percent and a sales rate of 50 percent is recognized as 25 percent of the forecast final gains in the project. The percentage of completion method is based on the view that an assignment is carried out in pace with completion of the respective project. Revenue and profit in the project are reported period-by-period, in pace with recognition, providing a direct link between financial reporting and the operations conducted during the period. Stage of completion is mainly determined based on project expenses incurred in relation to total estimated project expenses. "Sales" refers to the number of residential units sold based on binding contracts with end customers. Revaluations (changes in forecasts) of anticipated project revenues lead to adjustment of previously recognized revenue in the project concerned. This adjustment is included in the net profit for the period. Anticipated losses are charged against the profit for the period in full. Revenue recognition according to the percentage of completion method is carried out from the preliminary stage of the project if reliable estimation can be made and continues according to the same principle until the project is completed. The Parent Company also applies the percentage of completion method. Most of JM's operations pertain to housing projects conducted by JM for subsequent sale. These operations consist of projects on JM's own land for production of housing for sale as tenant-owned/freehold apartments or tracts of singlefamily homes for sale directly to consumers. In residential project development JM usually owns the development property at the start of the project. When production begins, the property with the carrying amount is transferred to the project and included among the project's other production costs. Interest expenses are included among production costs from the start of production.

Income tax

The heading "Taxes" in the income statement includes current and deferred income tax for Swedish and foreign group divisions. The companies in the Group are liable for tax according to existing legislation in each country. The state income tax rate in Sweden was 28 percent during the year, but has been lowered to 26.3 percent commencing in 2009. The tax is calculated on nominal book profit with an addition for non-deductible items and a deduction for non-taxable income and other deductions. The balance sheet method is applied to accounting for deferred tax. According to this method deferred tax liabilities and assets are reported for temporary differences between carrying amounts and fiscal values respectively for assets and liabilities and for other fiscal deductions or deficits. Deferred tax assets are recognized net against deferred tax liabilities if they can be used against deferred tax liabilities. Deferred tax liabilities and tax assets are calculated on the basis of the actual tax rate. The effects of changes in applicable tax rates are taken against income in the period the change becomes law. Deferred tax assets are reduced to the extent that it is not probable that the underlying tax asset can be realized within the foreseeable future.

Intangible assets (goodwill)

The useful life of each intangible asset is set and written off over the useful life of the asset. If the useful life of the asset is assessed to be indeterminate it is not amortized. An assessment that concludes that an intangible asset has an indeterminate useful life considers all relevant conditions and is based on the fact that there is no predictable maximum time limit for the net cash flow that the asset generates. Goodwill is generally assumed to have an indeterminate useful life. The need for impairment is tested at least annually for intangible assets, including goodwill, with an indeterminate useful life. Goodwill is tested for an impairment loss as described below. Goodwill value, which is established at the time of acquisition, is allocated among cash-generating units, or groups of cash-generating units. Each such cash flow to which goodwill is allocated corresponds with the lowest level within the Group at which goodwill is monitored in the company's governance and is not a larger part of the Group than a segment. An impairment loss is present when the recoverable amount relating to a cash-generating unit (or groups of cash- generating units) is less than the carrying amount. A write-down is then reported in the income statement.

Plant, property, and equipment

Plant, property and equipment are recognized at cost after deduction for accumulated amortization and write-downs, if any. Depreciation according to plan is applied on a straight-line basis and based on the cost and assessed useful life of the assets.

Project and development properties

Project properties are all properties that are not classified as development properties as described below. JM does not own properties for long-term management. Project properties must be sold after they are fully developed and are therefore classified as current assets and valued according to IAS 2 Inventory. Production costs for JM's fully developed properties include both direct costs and a reasonable share of indirect costs. Interest expenses pertaining to production of project properties are recognized as an expense in the Parent Company. In the consolidated accounts the same amount is added to the cost of project properties. Properties, undeveloped or developed, that are intended for production of tenantowned apartments/freehold apartments or single-family homes and land for investment properties are classified as development properties. The properties are usually sold soon after production begins. Operating profit from development properties is reported as profit from project development operations. Development properties are reported in accordance with IAS 2 Inventory.

Not 1 cont'd.

Project and development properties are usually recognized as assets in the accounting period during which the parties entered into a binding acquisition agreement.

Borrowing costs

Borrowing costs are included in the consolidated accounts in the acquisition cost of buildings in progress (project properties). In general, borrowing costs added to acquisition cost are limited to assets that take a significant time for completion which in the Group's case comprise construction of project properties. Interest expenses are included in the acquisition value until the time that the building is complete. If special borrowing arrangements were made for the project the actual average borrowing cost is used. In other cases the borrowing cost is calculated based on the Group's actual average borrowing cost.

Write-downs

If on the balance sheet date there is any indication of impairment of the value of plant, property or equipment, or an intangible asset, a calculation is performed of the recoverable amount of the asset. The recoverable amount is the greater of net realizable value and value in use. If the estimated recoverable amount is lower than the carrying amount, an impairment loss is recognized on the asset's recoverable amount. An impairment loss is reversed when the basis for the impairment, wholly or partly, no longer exists. The term impairment loss is also used in conjunction with revaluation of properties reported as current assets. Valuation of these properties is performed item by item (property by property) according to the lower of cost and market principle; in other words, the lower of cost and net realizable value.

Net realizable value is the estimated sales price in the ordinary course of business, less estimated costs for completion and effecting a sale.

Net realizable value for development properties is based on internal project evaluations where assumptions are made about the project's expected revenues and expenses. The future cash flow of the project is discounted by a discount rate. Those projects (development properties) that demonstrate a negative present value based on discounting become the object of impairment. See also "Intangible assets (goodwill)".

Leases

Leases are classified as either finance or operating leases. A finance lease exists when the economic risks and benefits associated with ownership are, in essence, transferred to the lessee; if this is not the case, it is classified as an operating lease. Briefly, a finance lease means that the object is recognized as an asset in the balance sheet of the lessee, while a matching liability is recognized as a liability item in the balance sheet. In an operational lease, the object is recognized in the balance sheet of the lessor. Lease fees in operational leases are recognized linearly over the term of the agreement. JM's holdings of leases with JM as lessee are of limited scope.

Employee benefits/pensions

Employee benefits are reported in accordance with IAS 19, Employee Benefits. A distinction is made between defined contribution pension plans and defined benefit pension plans relating to post-employment benefits. Defined contribution pension plans are defined as plans where the company pays set charges to a separate legal entity and does not have any obligation to pay additional charges even if the legal entity does not have sufficient assets to pay the benefits to employees attributable to their service until the reporting date. Other pension plans are defined benefit. Obligations and costs relating to defined benefit pension plans are calculated according to the Projected Unit Credit Method. The intention is that anticipated future pension payments should be expensed evenly distributed over the employee's period of service. Anticipated future salary increases and anticipated inflation are included in the calculation. The present value of obligations is discounted in the first place based on a market return on first-class corporate bonds on the reporting date. In Sweden and Norway, where there is no functioning market for such bonds, the market return on government bonds is used and a premium for a longer maturity added based on the duration of the pension obligations. The fair value of obligations is deducted from the estimated value of the obligations. In order to avoid substantial fluctuations in pension costs between years, changes within a certain level (known as the corridor) can be left unrecognized in the income statement and in the balance sheet. The corridor means that actuarial gains and losses only affect the Group's profit or loss to the extent that they exceed the higher of 10 percent of the present value of pension obligations compared and 10 percent of the fair value of the plan assets. Excess amounts (outside the corridor) are allocated over the average remaining length of employment. The recognized return on plan assets relates to the estimated return at the beginning of the year and therefore usually differs from the actual return during the year. This variance is an actuarial gain or loss. Information about the Group's pension obligations is provided in Note 23. Independent actuaries conduct annual calculations relating to the defined benefit plans found at JM. Only an insignificant part of the Group's defined benefit pension obligations have been financed through premiums to Alecta. Since the requisite information cannot be obtained from Alecta, these pension obligations are reported as a defined contribution plan. Taxes payable on pension costs, such as the Swedish payroll tax on pension costs, are taken into account when calculating pension obligations as described above, which is in accordance with pronouncement UFR 4 from the Swedish Financial Reporting Board, Accounting for special employer's contribution and yield tax.

Share-based payments

Approximately 50 senior executives in the Group have been offered the opportunity to participate in longterm incentive schemes, the share-matching plan and the performance share program.

Participation in the share matching plan requires an investment in JM common stock (contribution shares). For each contribution share the participant is granted the right to acquire one ordinary JM share (performance share) at an established redemption price, provided that certain performance requirements are met. In order to be eligible for the program the participant is required to have been employed at JM Group for a specific period of time and kept all contribution shares during this period.

Participants in the performance share program receive, free of charge and with no requirement for investment in contribution shares, a certain number of rights. Each right entitles the holder to acquire at a future point in time one ordinary share in JM (performance share) at an established redemption price, provided that certain performance requirements are met. In order to exercise the right to acquire a performance share the participant must be employed by JM during an initial vesting period and certain performance requirements, linked to JM's growth in earnings per share, must be met.

The fair value of the right for the share matching plan and performance share program is determined on the grant date. Measurement, which is based on the price of the ordinary share on the grant date, takes into account the redemption price as well as the fact that the participant does not receive any return on the performance share during the vesting period.

Total fair values of the granted rights expected to be earned during the vesting period are reported as an expense in the income statement with a corresponding increase in retained earnings. The expense will be recognized in the income statement over the vesting period. Exercise of the rights will mean that JM must pay social security expenses. Provisions are being made for the assessed future social security expenses and the expense will be recognized in the income statement over the vesting period.

Financial instruments

Financial assets and financial liabilities are classified in different categories and are then recognized and measured according to the principles that apply to each category. Short-term investments are classified as assets that are measured at fair value and where changes in value are recognized in the income statement. Financial liabilities are measured at amortized cost. This is calculated so that a constant effective interest is obtained over the borrowing period provided maturities are not short. Accounts payable and similar current liabilities are thus recognized at nominal amounts. Financial derivative instruments are recognized in the balance sheet at fair value. Changes in value are recognized in the income statement. The Group's policy is that derivatives may only be held for hedging purposes. Hedge accounting, in which changes in value of derivatives are recognized directly in equity and later transferred to offset the hedged item, is not applied. JM has no or only negligible holdings of derivative instruments.

Provisions and contingent liabilities

Provisions are reported when JM has a commitment as a result of events that have occurred and where it is probable that payments will be required in order to meet the commitment. Moreover, it must be possible to reliably estimate the amount that will be paid. Provisions are made for future costs on the basis of guarantee commitments. This calculation is based on the estimated costs for the project concerned or for a group of similar projects, calculated according to a ratio that historically provided a reliable provision for these costs. The same ratio can for example function as a proportion of income or estimated cost per completed residential unit. Contingent liabilities are possible commitments originating from events that have occurred and whose existence will be confirmed only by the occurrence or lack thereof of one or more uncertain future events, which are not completely in the company's control. Obligations that originate from events that have occurred, but that are not recognized as liabilities or provisions, because it is not probable that an outflow of resources will be required to settle the obligation or because the size of the obligations cannot be reliably estimated, are also recognized as contingent liabilities.

Cash flow statement

The cash flow statement has been prepared according to the indirect method. The analysis has been adapted to JM's operations. Since buying and selling project and development properties are included in JM's ongoing activities, these are reported under the corresponding sections of the cash flow statement. The item "Payment on account for project properties" mainly refers to utilization of properties for production and is matched by a cash flow in the form of invoicing. Buying and selling of plant, property and equipment not pertaining to properties are reported under "Investing activities, other." Cash and cash equivalents are classified as cash and bank balances and short-term financial investments that are traded on the open market at known amounts and are associated with only marginal risk for value fluctuations. Cash and cash equivalents include short-term investments with a maturity of less than three months from the acquisition date. Taxes and interests paid for the year are reported in full under operating activities.

Parent Company's Accounting Policies

The Parent Company's accounting policies deviate from the Group's on the following points: Defined benefit pension plans are reported based on the regulations in the Swedish Law on Safeguarding of Pension Commitments. Untaxed reserves are reported in their entirety without being allocated between shareholders' equity and deferred tax. Participations in subsidiaries, associate companies and joint ventures are recognized at cost of acquisition less any impairment losses. In the Parent Company borrowing costs relating to buildings under construction (project properties) are expensed and recognized as a financial cost in the income statement. Mergers are reported in accordance with BFNAR 2003:2, general advice from the Swedish Accounting Standards Board. In the Parent Company, mergers of wholly owned group companies are reported according to the consolidated value method, in which all assets and liabilities are taken over at values based on the acquisition analysis carried out in connection with the original acquisition of the group company in question. The merger difference is taken directly to shareholders' equity.

NOTE 2	CONSOLIDATED INCOME STATEMENT BY SEGMENT
--------	------------------------------------------

	JM	JM	JM		Unallo				Unallo
	Residen	Residen	Property	JM	cated	Sub	JM	Sub	cated
	tial	tial	Develop	Produc	items	total	Interna	total	items	Total
Group 2008	Stockholm	Sweden	ment	tion	Sweden	2) Sweden	tional	Group	3) 4) Group	Group
Revenues—external	5,317	3,263	213	1,378	-	10,171	2,058	12,229	-	12,229
Revenues—internal	-	-	-	630	– 630	-	-	-	-	-
Total revenues	5,317	3,263	213	2,008	– 630	10,171	2,058	12,229	-	12,229
Costs for production and management 1)	– 4,028	– 2,843	– 180	– 1,839	630	– 8,260	– 1,920	– 10,180	-	– 10,180
Gross profit	1,289	420	33	169	-	1,911	138	2,049	-	2,049
Selling and administrative expenses 1)	– 229	– 182	– 32	– 45	-	– 488	– 174	– 662	– 57	– 719
Gains on the sale of properties	-	– 1	74	-	-	73	-	73	-	73
Impairment losses on properties	– 140	– 40	-	-	-	– 180	– 140	– 320	-	– 320
Operating profit	920	197	75	124	-	1,316	– 176	1,140	– 57	1,083
Financial income and expenses									– 31	– 31
Net profit/loss before taxes								1,140	– 88	1,052
Taxes									– 234	– 234
Net profit for the year								1,140	– 322	818
1) Including: depreciation and amortization of
property, plant, and equipment	– 2	– 1	-	– 1	-	– 4	– 4	– 8	– 2	– 10
Group 2007
Revenues—external	5,217	4,011	91	727	-	10,046	2,685	12,731	-	12,731
Revenues—internal	-	-	-	569	– 569	-	-	-	-	-
Total revenues	5,217	4,011	91	1,296	– 569	10,046	2,685	12,731	-	12,731
Costs for production and management 1)	– 3,772	– 3,163	– 68	– 1,166	569	– 7,600	– 2,339	– 9,939	-	– 9,939
Gross profit	1,445	848	23	130	-	2,446	346	2,792	-	2,792
Selling and administrative expenses 1)	– 224	– 165	– 26	– 41	-	– 456	– 168	– 624	– 49	– 673
Gains on the sale of properties	15	2	165	-	-	182	-	182	-	182
Operating profit	1,236	685	162	89	-	2,172	178	2,350	– 49	2,301
Financial income and expenses									– 4	– 4
Net profit/loss before taxes								2,350	– 53	2,297
Taxes									– 632	– 632
Net profit for the year								2,350	– 685	1,665
1) Including: depreciation and amortization of
property, plant, and equipment	– 3	– 1	-	– 1	-	– 5	– 11	– 16	– 1	– 17
Income by country		Sweden		Norway	Denmark		Finland	Belgium		Total
2008		10,171		1,311		579	37		131	12,229
2007		10,046		1,908		611	21		145	12,731

Income by business segment

Operating profit by business segment

Operating cash flow by business segment

0

1,000 2,000 3,000 4,000 5,000 6,000

Note 2 cont'd.

CONSOLIDATED BALANCE SHEET BY SEGMENT

	JM	JM	JM					Unallo -
	Residen	Residen	Property	JM	Sub	JM	Sub	cated
	tial	tial	develop	Produc	total	Interna	total	items	Total
Group Dec 31, 2008	Stockholm	Sweden	ment	tion	Sweden	tional	Group	5) 6) Group	Group
ASSETS
Non-current assets	-	-	-	-	-	56	56	128	184
Project properties	-	-	553	-	553	61	614	-	614
Development properties	2,432	1,546	80	-	4,058	1,562	5,620	-	5,620
Participations in tenant-owner associations, etc.	95	36	-	-	131	40	171	-	171
Current receivables	372	501	562	277	1,712	330	2,042	313	2,355
Cash and cash equivalents	-	-	-	-	-	-	-	1,111	1,111
Total current assets	2,899	2,083	1,195	277	6,454	1,993	8,447	1,424	9,871
TOTAL ASSETS	2,899	2,083	1,195	277	6,454	2,049	8,503	1,552	10,055
EQUITY AND LIABILITIES
Equity	-	-	-	-	-	-	-	3,241	3,241
Long-term liabilities	-	-	-	-	-	-	-	2,164	2,164
Current liabilities	922	563	13	383	1,881	139	2,020	2,630	4,650
TOTAL EQUITY AND LIABILITIES	922	563	13	383	1,881	139	2,020	8,035	10,055
Total operating capital by business segment	1,977	1,520	1,182	– 106	-	1,910	-	-	-
Investment in property, plant, and equipment	-	-	-	-	-	-	-	13	13
Group Dec 31, 2007
ASSETS
Non-current assets	-	-	-	-	-	60	60	61	121
Project properties	-	-	760	-	760	30	790	-	790
Development properties	2,405	1,377	111	-	3,893	1,389	5,282	-	5,282
Participations in tenant-owner associations, etc.	26	46	1	-	73	31	104	-	104
Current receivables	261	282	54	199	796	568	1,364	194	1,558
Cash and cash equivalents	-	-	-	-	-	-	-	2,061	2,061
Total current assets	2,692	1,705	926	199	5,522	2,018	7,540	2,255	9,795
TOTAL ASSETS	2,692	1,705	926	199	5,522	2,078	7,600	2,316	9,916
EQUITY AND LIABILITIES
Equity	-	-	-	-	-	-	-	3,893	3,893
Long-term liabilities	712	245	42	-	999	-	999	1,553	2,552
Current liabilities	659	526	5	267	1,457	784	2,241	1,230	3,471
TOTAL EQUITY AND LIABILITIES	1,371	771	47	267	2,456	784	3,240	6,676	9,916
Total operating capital by business segment	1,321	934	879	– 68	-	1,294	-	-	-
Investment in property, plant, and equipment	-	-	-	-	-	-	-	10	10
	JM	JM	JM
	Residen	Residen	Property	JM		JM
	tial	tial	develop	Produc		Interna

Residen	Residen	Property	JM	JM
tial	tial	develop	Produc	Interna
Stockholm	Sweden	ment	tion	tional
1,289	468	170	54	– 10
	1,090	– 203	– 113	162	– 657

Notes:

The geographical areas Sweden and International constitute the JM Group's primary basis of division for segment reporting. The Swedish operations are also divided into four business segments: JM Residential Stockholm, JM Residential Sweden, JM Property Development and JM Production, which are reported separately within the Sweden segment. JM's secondary segment comprises project development. Since there is only one secondary segment, information is provided in the income statements, balance sheets and cash flow statements.

• 2) Unallocated items within Sweden comprise elimination of intragroup invoicing between business segments.
• 3) Unallocated items within the Group pertain to groupwide costs.
• 4) Financial income and expenses, as well as tax, are not allocated by segment, but reported as unallocated items.
• 5) The assets and liabilities and shareholders' equity that are not included in JM's definition of operating capital are not allocated by segment. They are reported as unallocated items mainly because they cannot be allocated in a fair and reasonable manner.
• 6) Plant, property and equipment are not included in JM's definition of operating capital and these investments are therefore reported as an unallocated item.

NOTE 3 EMPLOYEES AND PERSONNEL COSTS

		of which
Average number of employees, by country	2008	men, %	2007	of which men, %
Sweden	2,180	84	2,067	84
Norway	294	85	262	83
Denmark	31	45	31	48
Finland	12	58	9	56
Belgium	16	63	16	69
Total	2,533	83	2,385	84

		2008			2007
Wages, salaries, other remuneration	Wages, salaries and	Social security		Wages, salaries and	Social security
and social security expenses	remunerations	expenses	Total	remunerations	expenses	Total
Group	1,086	480	1,566	982	437	1,419
(of which pension costs)		(148)1)			(134)1)

1) SEK 4.6m (3.5) of the Group's pension costs pertain to the Group Board of Directors and President. The Group's outstanding pension commitments to them amount to SEK 0.4m (2.1).

		2008		2007
Wages, salaries and other remuneration by country and distribution between the Board and President and other employees	Board of Directors and President	Other employees	Total	Board of Directors and President	Other employees	Total
Sweden	10	880	890	10	782	792
(variable compensation)	(2)	(72)	(74)	(2)	(59)	(61)
Norway	3	149	152	3	152	155
(variable compensation)	(1)	(3)	(4)	(1)	(11)	(12)
Denmark	2	22	24	2	21	23
(variable compensation)	(0)	(2)	(2)	(1)	(1)	(2)
Finland	3	8	11	1	3	4
(variable compensation)	(0)	(1)	(1)	(-)	(-)	(-)
Belgium	1	8	9	2	6	8
(variable compensation)	(-)	(-)	(-)	(-)	(-)	(-)
Total Group	19	1,067	1,086	18	964	982
(variable compensation)	(3)	(78)	(81)	(4)	(71)	(75)

Employees and personnel costs

Compensation Committee

JM has had a Compensation Committee since February 2003.

Compensation to the Board of Directors

JM's Board, excluding the President, consists of a total of eleven persons, eight men and three women. Seven of these eleven persons were elected by the Annual General Meeting, four men and three women. The other four are employee representatives, all of whom are men. The Chairman of the Board was paid a total of SEK 688,000 (633,000) in board fees. The other non-executive board members (six persons) were paid SEK 1,947,000 (1,662,000).

Compensation to the President and Executive Management

Compensation to the President and other members of Executive Management comprises basic salary, variable compensation, other benefits and pension provisions.

Compensation to the President is drafted by the Compensation Committee and decided by the Board. Compensation for other members of Executive Management is decided by the Compensation Committee. The combined remuneration must be competitive in the labor market in which the executive is active.

Variable compensation for the President for the 2009 financial year will be determined as follows: 60 percent will be based on the financial result for the Group, 30 percent on earnings per share, and 10 percent on JM's Customer Satisfaction Index (CSI). Variable compensation for the President for 2009 may amount to a maximum of SEK 2,380,000. Total variable compensation for the 2008 financial year was SEK 524,000 (2,195) to be paid during spring 2009. Variable compensation for other members of Executive Management is based, depending on position, on the financial performance of the Group and the business unit, as well as on the CSI. Variable compensation may amount to a maximum of three and seven monthly salaries respectively, depending on position. Variable compensation for other members of Executive Management for 2009 may amount to a maximum of SEK 5.3m. Total variable compensation for other members of Executive Management for the 2008 financial year was SEK 2.5m (6.2), to be paid during spring 2009.

Share match program and performance share program

The 2008 annual meeting of shareholders approved a share match program and a performance share program for senior executives in the Group. The program covers up to 50 senior executives. The purpose of the program is to ensure long-term commitment among the senior executives and to further align the interests of the senior executives with those of the shareholders. Participation in the 2008 Share Match Program required an investment in ordinary shares of JM ("contribution share"). For every two contribution shares acquired under the program, the participant in the program was granted one right ("Right I"), free of charge, entitling the holder at a future point in time to acquire one ordinary share in JM ("Share") at a redemption price of SEK 10. In order to exercise Right I to acquire Shares the participant must be employed by the JM Group during an initial vesting period and during this period the participant must retain all contribution shares. The maximum number of contribution shares that each participant could acquire was related to the participant's variable pay for 2007 and the average market value for ordinary shares in JM during the last 10 trading days in May 2008. The term of the 2008 share match program is seven years, beginning on May 31, 2008, with the opportunity to acquire performance shares after three years. Participants in the 2008 Performance Share Program receive, free of charge and with no requirement for investment in contribution shares, a certain number of rights ("Right II"). Each Right II entitles the holder to acquire at a future point in time one ordinary share in JM ("Performance Share") at a redemption price of SEK 10, provided that certain performance requirements are met. In order to exercise Right II to acquire a Performance Share the participant must be employed by the JM Group during an initial three-year vesting period and certain performance requirements, linked to JM's growth in earnings per share during financial years 2008–2010, must be met. The 2008 share match program and performance share program cover 61,279 ordinary shares, equivalent to dilution of about 0.07 percent of shares and votes in the company. The cost of the programs, which is charged against earnings during the three-year vesting period, will be SEK 8.0m including social security expenses.

Pensions

The President is entitled to an annual premium provision of 35 percent of basic salary. In addition, the company pays for part of the President's health insurance premiums, with a salary ceiling of 50 times the income base amount. The company has also pledged, as a possible supplement, to pay survivor's pension to the extent that survivor's pensions do not total 50 percent of basic salary. The Company would pay this supplement until such time that the President would have reached the age of 65. If the President is employed by the Company when he reaches the age of 60, either party is entitled to request that the President leave his position as President and CEO.

The Swedish members of Executive Management, excluding the President, are covered by the ITP plan and an alternative ITP plan. Most of the members of Executive Management are covered by a premium-based supplementary plan with an annual premium provision of SEK 50,000 –120,000. Retirement age is 65. A few members of Executive Management are entitled to retire at the age of 60 with 70 percent of basic salary until the day on which they turn 65.

Notice periods / Severance pay

The period of notice for the President is 12 months in the event of termination by the company. If no other employment has been secured by the end of the notice period, compensation shall be paid for an additional 12 months. In the event of termination by the President, the notice period is six months. No additional compensation will be paid after the six months. The other members of Executive Management have the same agreement as the President (six months mutual term of notice and six months severance pay) if termination is initiated by JM. A few members of Executive Management have notice periods of 24 months on termination by the company and 12 months on termination by the employee.

Note 3 cont'd.

Summary of basic and variable compensation and pensions to the Board and Executive Management in 2008 and 2007.

	2008
SEK 000s	Basic salary / Board fee	Variable compensation	Fair value share matching and performance share 1) programs 3)	Other benefits	Pension costs	Total
Chairman of the Board
Lars Lundquist	688	-	-	-	-	688
Other directors
Berthold Lindqvist	360	-	-	-	-	360
Elisabet Annell	333	-	-	-	-	333
Eva-Britt Gustafsson	333	-	-	-	-	333
Bengt Larsson	307	-	-	-	-	307
Torbjörn Torell	307	-	-	-	-	307
Åsa Söderström Jerring	307	-	-	-	-	307
President	4,248	2,195	471	273	1,432	8,619
Others in Executive Management 2)	15,115	6,214	1,889	804	5,165	29,187
Total	21,998	8,409	2,360	1,077	6,597	40,441

1) The variable compensation reported in the table relates to amounts paid in 2008. All payments in 2008 are attributable to the 2007 financial year.

2) JM's Executive Management, excluding the President, comprised a total of ten persons in 2008, seven men and three women.

3) The figure refers to the total allotment for 2008. Eligibility for redemption of shares requires an additional three years of employment. The expensed component of the allotted value for 2008 is about 20 percent of the stated value. This value is based on the theoretical calculated value during the grant period and has been calculated by a third party.

	2007
SEK 000s	Basic salary / Board fee	Variable 1) compensation	Fair value share match program3)	Other benefits	Pension costs	Total
Chairman of the Board
Lars Lundquist	633	-	-	-	-	633
Other directors
Berthold Lindqvist	332	-	-	-	-	332
Elisabet Annell	305	-	-	-	-	305
Eva-Britt Gustafsson	305	-	-	-	-	305
Bengt Larsson	285	-	-	-	-	285
Torbjörn Torell	285	-	-	-	-	285
Åsa Söderström Jerring	150	-	-	-	-	150
President	3,964	1,712	670	148	1,358	7,852
Others in Executive Management 2)	14,692	5,225	1,995	647	4,722	27,281
Total	20,951	6,937	2,665	795	6,080	37,428

1) The variable compensation reported in the table relates to amounts paid in 2007. All payments in 2007 are attributable to the 2006 financial year.

2) JM's Executive Management, excluding the President, comprised a total of ten persons in 2007, eight men and two women.

3) The figure refers to the total allotment for 2007. Eligibility for redemption of shares requires an additional three years of employment. The expensed component of the allotted value for 2007 is about 20 percent of the stated value. This value is based on the theoretical calculated value during the grant period and has been calculated by a third party.

Share Match Program

Issued year	Holder	Number right 1- shares allocated	Number on January 1	Right 1 shares redeemed in 2008	Right 1 shares due in 2008	Number of Right 1 shares per Dec. 31 2008	Percentage of total number outstanding shares	Fair value per share	Re - demp tion price	Due date	Vesting period year
2007	President	2,701	2,701	-	-	2,701	0.003	258.24	10	2014-12-31	3
2007	Others in Executive Management	8,038	8,038	-	-	8,038	0.010	258.24	10	2014-12-31	3
2007	Other	14,739	14,739	–1,098	-	13,641	0.016	258.24	10	2014-12-31	3
2008	President	550	-	-	-	550	0.001	107.66	10	2015-12-31	3
2008	Others in Executive Management	4,738	-	-	-	4,738	0.006	107.66	10	2015-12-31	3
2008	Other	12,495	-	– 751	-	11,744	0.014	107.66	10	2015-12-31	3
		43,261	25,478	–1,849	-	41,412	0.050

Performance share program

Issued		Number right 2 shares	Number on	Right 2 shares redeemed in	Right 2 shares due in	Number of Right 2 shares per Dec. 31	Percentage of total number outstanding	Fair value	Re - demp tion	Due	Vesting period
year	Holder	allocated	January 1	2008	2008	2008	shares	per share	price	date	year
2008	President	4,274	-	-	-	4,274	0.005	107.66	10	2011-12-31	3
2008	Others in Executive Management 14,599		-	-	-	14,599	0.018	107.66	10	2011-12-31	3
2008	Other	24,577	-	– 440	-	24,137	0.029	107.66	10	2011-12-31	3
		43,450	-	– 440	-	43,010	0.052

Note 3 cont'd.

Convertible debentures for personnel

The 2008 Annual General Meeting resolved to offer all employees in the JM Group in Sweden a convertible subordinated debenture, and warrants for employees outside Sweden. The purpose of the issue of personnel convertibles and warrants was to boost long-term financial commitment to JM on the part of employees with increased motivation and reinforced loyalty to the Group. A total of 424,000 convertible bonds for a notional amount of SEK 57m and 73,000 warrants were issued. The loan matures on June 10, 2012 and entitles the holders to convert to one JM share for SEK 134 during a special conversion window. Employees paid the market price for the convertibles received and the program is not subject to any terms concerning continued employment or performance on the part of employees. They were offered external bank financing for the convertible debentures without any guarantees or undertakings on the part of JM.

Absence due to illness at JM, Sweden

Total absence due to illness amounts to 4.3 percent (4.6) of regular working hours. Of total absence due to illness, 50 percent (47) comprises absence due to illness for more than 60 days.

Absence due to illness by age, %	2008	2007
–29 year	4.6	4.5
30–49 years	3.5	3.7
50 and older	5.5	6.2
Absence due to illness by gender, %	2008	2007
Men	4.7	5.0
Women	2.4	3.3

NOTE 4 DEPRECIATION ACCORDING TO PLAN

	2008	2007
Machinery and equipment	– 10	– 11
Other property, plant, and equipment	-	– 6
Total	– 10	– 17

The following depreciation rates are applied:

Construction machinery 10%

Computers and other equipment 20–33%

NOTE 5	FEES AND REMUNERATION TO AUDITORS
		2008	2007
Ernst & Young
Auditing services		4.0	3.7
Other services		1.2	0.7
Total		5.2	4.4

NOTE 6 GAINS ON THE SALE OF PROPERTIES

	2008	2007
Sales values
Project properties	550	482
Development properties	198	171
Total	748	653
Carrying amount
Project properties	– 493	– 340
Development properties	– 182	– 131
Total	– 675	– 471
Results
Project properties	57	142
Development properties	16	40
Total	73	182

NOTE 7 WRITE-DOWNS ON PROPERTIES

	2008	2007
Development properties	– 320	-
Total	– 320	-

The write-downs involve a number of properties mainly located in Copenhagen and Stockholm (See also note 2, Consolidated income statement by segment).

NOTE 8 FINANCIAL INCOME AND EXPENSES

		Financial income
	2008	2007
Dividend	1	1
Interest income	87	54
Total	88	55

	Finance expense
	2008	2007
Interest expense	– 91	– 34
Interest portion in this year's pension costs	– 28	– 25
Total	– 119	– 59

Of the financial income, SEK 3m originate from reassessment and SEK 35m from realized exchange rate gains relating to receivable from international company. SEK 46m (52) of revenues come from cash, cash equivalents, and short-term investments. SEK 46m (27) of the Group's financial expenses pertain to interest-bearing liabilities valued at amortized cost and SEK 37m pertain to reassessment of currency derivatives.

NOTE 9 TAXES 2008 2007 Net profit/loss before taxes Sweden 1,286 2,132 International – 234 165 Total 1,052 2,297 Current tax Sweden – 64 – 192 International – 18 – 50 Total – 82 – 242 Deferred tax Sweden – 227 – 395 International 75 5 Total – 152 – 390 Total tax Sweden – 291 – 587 International 57 – 45 Total – 234 – 632

Difference between reported tax and nominal tax rate 28 percent

Profit before tax ²28 %	– 295	– 643
Adjustment of tax from previous years	7	– 2
Difference foreign tax	–6	1
Non-taxable income	13	2
Non-deductible expense	– 1	– 2
Tax untaxed reserve (tax allocation reserve)	– 3	– 1
Reassessment of deferred tax attributable to lower tax
on income 2009	25	-
Dissolution deferred tax, previous years	26	13
Total	– 234	– 632

NOTE 10 EARNINGS AND DIVIDEND PER SHARE

		Basic		Diluted
	2008	2007	2008	2007
Earnings per share (SEK)	9.50	18.30	9.50	18.30

Calculation of the numerator and denominator used in the above calculations of earnings per share is shown below. Earnings per share was calculated as net profit for the period attributable to shareholders of the Parent Company divided by weighted average number of outstanding shares during the period.

Earnings per share, basic

Calculation of diluted earnings per share for 2008 is based on the profit for the year attributable to shareholders of the Parent Company of SEK 818m (1,665) and on a weighted average number of outstanding ordinary shares during 2008 amounting to 85,968,011 (91,076,274). Profit for the year is attributable in its entirety to shareholders of the Parent Company.

Note 10 cont'd.

Number of shares	2008	2007
Total number of outstanding shares, 1 January	88,879,308	92,289,764
Effect of repurchase	– 87,123	– 20,521
Effect of redemption	– 2,824,174	– 1,192,969
Weighted average number of shares during
the year basic	85,968,011	91,076,274

Earnings per share, diluted

Calculation of diluted earnings per share for 2008 is based on the profit for the year attributable to shareholders of the Parent Company of SEK 818m (1,665) and on a weighted average number of outstanding ordinary shares during 2008 amounting to 85,991,380 (91,090,084). Profit for the year is attributable in its entirety to shareholders of the Parent Company.

Number of shares	2008	2007
Weighted average number of shares during the year
before dilution	85,968,011	91,076,274
Effect of share match program	23,369	13,810
Weighted average number of shares during the
year fully diluted	85,991,380	91,090,084

Outstanding number of shares and instrument with potential dilutive effects

At the end of 2007 JM had 88,879,308 outstanding shares. During the second quarter of 2008 JM acquired 150,000 shares (35,000), which means that JM holds a total of 185,000 repurchased shares as a hedge for its long-term incentive programs. JM also redeemed 5,512,425 shares (3,375,456) during the second quarter of 2008. The total number of outstanding shares at the end of 2008 was 83,216,883.

Instruments that may have a potentially dilutive effect include JM's two share match programs (2007 and 2008), JM's 2008 performance share program , JM's two convertible programs (2007 and 2008) and JM's 2008 warrant program.

JM's two convertible programs and warrant program have not entailed any dilution of the number of shares, since the exercise price exceeds the average share price. If in the future the average share price achieves a level over the exercise prices, these programs will entail dilution. The exercise price for the 2007 convertible program is SEK 262.30 and for the 2008 convertible and warrant program it is SEK 134.

JM's 2008 performance share program has not entailed any dilution of the number of shares, as the conditions in this program were not met during the year.

For more information about JM's long-term incentive program, see note 1, Accounting and valuation principles and note 3, Employees and payroll expenses.

Cash dividend (as proposed by the Board of

Directors for 2008)	2008	2007
– per share (SEK)	0	5.50
– total (SEKm)	0	489

NOTE 11	GOODWILL
---------	----------

	2008	2007
Opening cost
Opening balance, January 1	60	55
Translation differences	– 4	5
Closing balance, December 31	56	60

The reported goodwill mainly pertains to goodwill at acquisition of Byggholt AS in 1998 and AS Prosjektfinans in 1999, which constitute JM's total operation in Norway.

As of January 1, 2005, JM began to apply IFRS 3, Business Combinations, which means, among other things, that goodwill is no longer amortized but will be tested for impairment according to IAS 36 at least annually, or more often if there is any indication of a need for impairment. Defined goodwill for the acquisitions of 1998 and 1999, respectively, totaled about NOK 100m.

AS Projektfinans merged with Byggholt AS 2003 and operations are considered fully integrated in Byggholt and the Byggholt Group is therefore the lowest cash-generating unit. The carrying amount for the Byggholt Group was tested for impairment as of December 31, 2008 and the recoverable value was found to exceed the carrying amount. Therefore no impairment loss for goodwill was necessary.

Recoverable value was defined by calculating the value in use of the cash-generating unit. Value in use for goodwill attributable to the Byggholt Group was calculated based on discounted cash flows. Cash flow for the first two years, after 2008, is based on the strategic plan adopted by the management.

Cash flow beyond the strategic two-year period is extrapolated based on the following assumptions:

• Estimated profit or loss before tax based on the previous year's results and expectations of future market developments
• Growth rate of at least 2 percent in order to extrapolate cash flow beyond the strategic period. The growth rate is a conservative assumption of the operation's long-term growth, not exceeding growth for the industry as a whole
• Discount rate before tax is 11 percent, which is based on the JM Group's average cost of capital before tax, while taking operation-specific data into account.

Sensitivity analysis

If the estimated earnings before tax after the end of the strategy period had been 5 percent lower than the management's assessment, the recoverable amount would decrease by 5 percent.

If the estimated growth rate used to extrapolate cash flows beyond the strategy period had been 50 percent lower than the basic assumption, the recoverable amount would decrease by 10 percent.

If the estimated average cost of capital applied for the discounted cash flow had been 3 percentage points greater than the basic assumption, the recoverable amount would decrease by 25 percent.

A sensitivity analysis of the discount rate shows that the discount rate would have to exceed 14 percent before the need for impairment would be present.

In all cases the sensitivity analysis above shows that a surplus (i.e., the recoverable amount is higher than the carrying amount). None of the hypothetical cases above should lead to an impairment of goodwill for the Norwegian business.

NOTE 12 PROPERTY, PLANT, AND EQUIPMENT

	Other property, plant,
	Machinery and equipment			and equipment		Total
	2008	2007	2008	2007	2008	2007
Opening cost
Opening balance, January 1	140	143	16	15	156	158
New purchases	13	10	-	-	13	10
Translation differences	0	4	0	1	0	5
Sales	– 35	– 17	– 16	-	– 51	– 17
Closing balance, December 31	118	140	-	16	118	156
Accumulated depreciation according to plan
Opening balance, January 1	– 114	– 116	– 16	– 10	– 130	– 126
Depreciation for the year	– 10	– 11	-	– 6	– 10	– 17
Translation differences	– 1	– 3	0	0	– 1	– 3
Sales	28	16	16	-	44	16
Closing balance, December 31	– 97	– 114	-	– 16	– 97	– 130
Closing residual value according to plan	21	26	-	-	21	26

NOTE 13 PARTICIPATIONS IN ASSOCIATES

	2008	2007
Opening cost
Opening balance, January 1	6	8
New purchases	0	0
Sales	0	– 2
Closing balance, December 31	6	6

NOTE 14 PARTICIPATIONS IN ASSOCIATES

Specification of Parent Company's shares and participation in associates, SEK 000s

	Registration	Number of shares		% of	Carrying amount
Company	number	Domicile	and participations	capital	2008	2007
AB Hälsingborgsbostäder	556105-9196	Helsingborg	500	50	50	50
AB Ramlösa Brunnsanläggning	556031-6274	Helsingborg	625	50	75	75
Adolfsbergs Brunns AB	556303-8685	Örebro	340	33	34	34
Dockan Exploatering AB 2 )	556594-2645	Malmö	333	33	5,003	5,003
Exploateringsbolaget Högmora KB	916643-6258	Stockholm	1	25	1	1
Fastighetsbolaget Glasberga KB	916643-1842	Stockholm	1	25	101	101
Glasberga Fastighets AB	556361-0707	Södertälje	1,000	25	100	100
HB Silverdal Exploatering 1 )	969674-5802	Sollentuna			1	1
Högmora Exploaterings AB	556395-0707	Stockholm	1,000	25	100	100
Kvarnholmen Utveckling AB 2 )	556710-5514	Stockholm	50,000	50	80,886	68,684
Kvibergstaden Exploatering HB	969731-1695	Göteborg	1	50	2,000	-
Mälarstrandens Utvecklings AB 2 )	556695-5414	Västerås	44	44	11,893	2,200
SMÅA AB	556497-1322	Stockholm	3,500	33	3,500	3,500
Carrying amount, December 31					103,744	79,849

1 ) Unlimited liability.

2 ) Joint ventures.

Specification of the Group's other holdings of shares and participations in associates, SEK 000s

	Number of shares		% of	Carrying amount
Company	Domicile	and participations	capital	2008	2007
Grefsen Utvikling AS, Norway	Bærum	500	50	– 4,590	– 3,035
Investbygg AS	Bergen	500	50	– 277	-
Kjørbokollen Utbygging AS, Norway	Bærum	10,000	50	13,422	14,012
Landmannstorget, Norway	Asker	100	50	41	18
Larvik Saneringsselskap AS, Norway	Larvik	100	50	1,797	2,269
Rolvsrud Utbygging AS, Norway	Oslo	-	-	-	27,353
Son Utvickling AS, Norway	Oslo	550	50	10,746	-
Tennisveien AS, Norway	Oslo	200	20	223	240
Ytre Markvei 30 AS, Norway	Bergen	-	-	-	– 73
Carrying amount, December 31				21,362	40,784
Reclassification in the Group				– 118,829	– 114,202
Carrying amount in the Group, December 31				6,277	6,431

Participations in joint ventures are consolidated according to

the proportional method

The Group's financial reports include the following items that comprise the Group's holdings in the joint venture company's revenues, expenses, assets and liabilities.

	2008	2007
Revenues	107	196
Expenses	–100	–181
Net Result	7	15
Assets	430	326
Liabilities	–116	–26
Net assets	314	300

	2008	2007
Opening cost
Opening balance, January 1	23	23
Additional receivables	0	-
Settled receivables	– 1	– 1
Translation differences	– 1	1
Closing balance, December 31	21	23

NOTE 16 PARTICIPATIONS IN GROUP COMPANIES

Specification of Parent Company's shares and participation in wholly owned Group companies, SEK 000s

	Registration		Number of shares	Carrying amount
Company	number	Domicile	and participations	2008	2007
AB Borätt	556257-9275	Stockholm	500	1,978	1,978
AB Garantihus	556073-0524	Stockholm	5,000	1,000	1,000
AB Naryda	556046-9081	Stockholm	1,000	13,000	13,000
Bruket i Kallhäll Exploaterings AB	556561-0184	Stockholm	1,000	100	100
Bruket i Kallhäll Exploaterings KB	969653-9122	Stockholm		10	10
Decemberviken AB	556668-2463	Stockholm	1,000	93	93
Fastighets AB Spången (formerly Fastighets AB Nitsev 1 AB)	556708-2093	Stockholm	100,000	100	-
Fastighetsbolaget Bohusmark KB	916443-1125	Göteborg	1	1,120	1,120
JM Byggholt AS, Norway	829350122	Oslo	20,000	127,687	127,687
JM Byrån Holding AB	556752-9630	Stockholm	1,000	100	-
JM Construction S.A., Belgium	413662141	Brussels	10,000	111,906	111,906
JM Danmark A/S	21410233	Copenhagen	100,000	351,277	252,191
JM Entreprenad AB	556060-8837	Stockholm	200,000	107,750	107,750
JM Hjulkuggen and 4 AB (formerly Geer-Wheel AB)	556720-7195	Malmö	1,000	448	-
JM Hjulkuggen 3 AB (formerly Virket i Lund AB)	556702-4871	Lund	1,000	521	-
JM Inredning i Stockholm AB	556202-8653	Stockholm	1,000	50	50
JM Jönköping Hagstensgärdet 1:5 AB	556658-7506	Jönköping	1,000	311	763
JM Måsen 16 AB (formerly Wihlborgs Måsen 1 AB)	556627-7827	Malmö	1,000	100	-
JM Stombyggnad AB	556173-0564	Stockholm	1,000	113	113
JM Strandhusen AB	556738-3939	Stockholm	1,000	108	111
JM Suomi OY	1974161-8	Helsinki	1,000	81,839	101,875
JM Värmdöstrand Holding AB	556275-4696	Stockholm	3,300,120	292,442	292,442
JM Älta 14:27 AB	556638-5281	Stockholm	-	-	523
JM Älta Centrum AB	556638-5380	Stockholm	1,000	1,449	-
JM Älta Holding AB	556638-5372	Stockholm	1,000	40,100	40,100
KB Silverfjädern	969676-7525	Stockholm		0	0
Lekandria Fastighets AB	556701-9046	Stockholm	1,000	100	100
Milud AB	556395-8643	Västerås	1,000	100	100
Månstrålen Holding AB	556072-9492	Stockholm	-	-	44,939
Seniorgården AB	556359-9082	Stockholm	1,000	100	100
Stora Mossen Fastigheter i Bromma HB	969673-7999	Stockholm	-	-	58
Södra 1 and 2 i Lund AB	556720-6148	Lund	1,000	113	196
TG Betongarbeten Produktion AB	556476-7720	Trollhättan	1,000	7,433	-
Carrying amount, December 31				1,141,448	1,098,305

Note 16 cont'd.

Specification of the Group's other holdings of shares and participations in wholly owned group companies, SEK 000s

	Registration		Number of shares		Carrying amount
Company	number	Domicile	and participations	2008	2007
AB Christeliten	556720-1180	Stockholm	1,000	100	100
AB Stanekiten	556720-1198	Stockholm	-	-	100
AB Stockholms Badmintonhall	556037-3655	Stockholm	2,520	391	391
Belmat S.A., Belgium		Brussels	-	-	242
Brf Mården	716300-0499	Stockholm	3,800,000	0	0
Byggholt AS, Norway		Bærum	100	117	121
Dinant-Meuse, Belgium		Brussels	6,200	678	587
Esplanade 64, Belgium		Brussels	3,000	3,281	2,842
Fastighet 1 DPL 3 AB	556716-5047	Stockholm	1,000	5,940	-
Fastighet 2 DPL 3 AB	556716-5062	Stockholm	1,000	6,861	-
Fastighet 3 DPL 3 AB	556716-5070	Stockholm	1,000	7,388	-
Fastighet 4 DPL 3 AB	556716-5245	Stockholm	1,000	7,125	-
Fastighet 5 DPL 3 AB	556716-6581	Stockholm	1,000	2,224	-
Fastighet 6 DPL 3 AB	556716-6615	Stockholm	1,000	2,078	-
Fastighet 7 DPL 3 AB	556716-6623	Stockholm	1,000	15,503	-
Fastighets AB Hilja	556740-2655	Stockholm	-	-	100
Fastighets AB Litografin	556768-1514	Stockholm	1,000	100	-
Fastighets AB Pedagogen	556705-4522	Mölndal	-	-	100
Fastighets AB Skissen	556768-3320	Stockholm	1,000	100	-
Fastighets AB Vingen	556768-1472	Stockholm	1,000	100	-
Frydenbergstomter AS		Tønsberg	60	756	-
Frösunda Hus IV AB	556694-1786	Stockholm	1,000	100	100
Förvaltnings AB Gnarpen	556717-3793	Stockholm	1,000	100	-
Förvaltnings AB Valdor	556742-1283	Stockholm	1,000	1,030	40,100
Förvaltnings AB Vilgur	556220-7984	Stockholm	1,000	24,664	24,664
Förvaltnings AB Vistet	556121-1979	Stockholm	1,000	17,743	17,743
Grafiken i Stockholm AB	556149-6034	Stockholm	3,000	1,304	1,304
Haugsnesfjero Næring AS, Norway		Bergen	100	279	162
JM Byggholt Proff, Norway		Bærum	50	4,653	7,885
JM Förskolelokaler AB	556728-9235	Stockholm	1,000	100	-
JM Vaxholm AB	556390-9174	Stockholm	13,300	1,333	1,333
JM Värmdöstrand AB	556001-6213	Värmdö	4,400	158,000	158,000
JM Älta Centrum AB	556638-5380	Stockholm	-	-	100
Lervig Maritim Utbyggingsselskap AS, Norway		Stavanger	10,000	864	1,001
Lidingöstrand Fastighets AB	556740-2648	Stockholm	1,000	100	100
Mariastaden AB	556228-8596	Stockholm	100	2,187	2,187
Merbraine, Belgium		Brussels	313	170	147
Månstrålen Holding AB	556072-9492	Stockholm	5,000	739,759	-
Nærsnesutbyggingen AS, Norway		Bærum	90,000	18,372	4,570
Naturtomter AS, Norway		Tønsberg	15	– 808	– 546
Nor-Invest AS, Norway		Tønsberg	514,396	36,160	38,914
Peter Wessels AS, Norway		Tønsberg	860	0	1,108
Peter Wessels KS, Norway		Tønsberg	-	-	1,134
QLR, Quartier Leopold Realty, Belgium		Brussels	-	-	1,047
Son Utvickling AS, Norway		Oslo	-	-	11,879
Sophies Minde Utvikling AS		Oslo	300	5,711	-
Stavanger Naeringsselskap AS, Norway		Stavanger	83,451,000	31,439	33,893
Søilandsgaten Sjøfront AS, Norway		Stavanger	1	2,104	2,245
Tellaplan Fastighets AB	556733-6010	Stockholm	1,000	100	100
Trulsrudmarka AS, Norway		Bærum	1,000	9,365	10,078
Waldemars Hage Næring AS, Norway		Bærum	100	110	119
Årstapaviljongen AB	556069-3425	Stockholm	1,000	142	142
Äldreboendet Lillängen AB	556743-6174	Stockholm	1,000	100	100
Äldreboendet Solbacka AB	556768-3924	Stockholm	1,000	100	-
Äldreboendet Ymerplan AB	556742-7199	Stockholm	1,000	100	-

NOTE 17 PROJECT PROPERTIES AND DEVELOPMENT PROPERTIES

	Project properties 1)		Development properties
	2008	2007	2008	2007
Opening cost
Opening balance, January 1	790	823	5,375	4,501
New purchases	314	152	860	1,289
Company acquisitions	-	167	711	841
Reclassifications	7	– 14	– 7	14
Translation differences	– 4	2	77	80
Transferred to production	-	-	– 781	– 1,219
Sales	– 493	– 340	– 189	– 131
Closing balance, December 31	614	790	6,046	5,375
Accumulated write-downs
Opening balance, January 1	-	-	– 93	– 153
Translation difference	-	-	– 20	-
Transferred to production	-	-	-	60
Write-downs for the year	-	-	– 320	-
Sales	-	-	7	-
Closing balance, December 31	-	-	– 426	– 93
Closing residual value according
to plan	614	790	5,620	5,282
Tax assessment values	136	594	2,878	2,829

1) Interest expenses added to the cost of project properties amounted to SEK 5m (0).

Reported residual value for the part of development properties recognized at fair value amounts to SEK 1,683m (29).

NOTE 18 PARTICIPATIONS IN TENANT-OWNER ASSOCIATIONS, ETC.

	2008	2007
Opening cost
Opening balance, January 1	104	73
New purchases	316	91
Translation difference	– 1	1
Sales	– 248	– 61
Closing balance, December 31	171	104

NOTE 19 OTHER CURRENT RECEIVABLES

	2008	2007
Receivables from property sales	474	64
Income taxes recoverable	139	75
Other	261	126
Total	874	265

NOTE 20 RECOGNIZED REVENUE LESS PROGRESS BILLINGS

	2008	2007
Recognized revenue in work in progress	7,360	7,763
Accumulated billing on account for work in progress	– 6,401	– 6,924
Total	959	839

NOTE 21 CASH AND CASH EQUIVALENTS

	2008	2007
Cash and bank balances	1,111	1,661
Short-term investments	0	400
Total	1,111	2,061

Short-term investments have a maturity of between one day and up to three months.

NOTE 22 INTEREST-BEARING LIABILITIES

Long-term interest-bearing liabilities	2008	2007
Liabilities to credit institutions maturity date 1–5 years
from closing day	95	54
Long-term promissory note, development properties
1–5 years	20	20
Convertible loan 1–5 years	192	135
Liabilities to credit institutions, maturity > 5 years from
closing day	7	7
Total	314	216
Current interest-bearing liabilities	2008	2007
Liabilities to credit institutions, interest-bearing –1 year	397	45
Short-term promissory note, development properties	740	-
Total	1,137	45

Interest-bearing
net liabilities/receivables		2008 Change		2007 Change	2006
Current interest-bearing liabilities	1,137	1,092	45	– 69	114
Long-term interest-bearing
liabilities	314	98	216	143	73
Transferred to pensions	513	14	499	17	482
Minus: cash and cash equivalents	– 1,111	950	– 2,061	– 552	– 1,509
Minus: interest-bearing receivables	– 11	1	– 12	0	– 12
Interest-bearing net liabilities
(+)/receivables (–) at year-end	842	2,155	– 1,313	– 461	– 852

The JM Group is exposed to different types of financial risks which may influence profit, cash flow and equity. These risks mainly comprise:

• Interest risk for borrowing and cash and cash equivalents
• Financing- and liquidity risk pertaining to the Group's capital requirements
• Currency risk pertaining to profit and net investments in foreign subsidiaries
• Credit risk attributable to financial and commercial activities.

JM's Board of Directors has adopted a policy for how to handle and control these risks within the Group. Financial risk management is largely concentrated to Finance and Treasury, which is also mandated to support operational activities. At the same time, the International companies are responsible for local activities in accordance with financial policy guidelines. The financial policy also includes interest risk management rules for construction loans during ongoing production, as well as final financing of tenant-owners' associations.

The accounting principles are described in note 1. The Risk and risk management section on pages 37–39 describes the Group's risk management and financial policy.

Interest risk

Interest risk refers to the risk that changes in interest rates would have a negative effect on the Group's net interest and cash flow. One of the biggest risk factors involves choosing the term for fixed rate loans for the Group's loan portfolio. JM chooses its fixed rate terms based on the tied up capital and cash flows of ongoing projects, the volume of long-term borrowing, as well as the current market situation for interest rates with different maturities. To achieve the desired term for fixed-rate loans, the Group primarily works with interest rate derivatives, mainly interest rate swaps.

Since the volume of long-term borrowing is relatively limited the Group mainly works with short time to maturity. The average term for fixed-rate loans excluding pension liability on December 31, 2008, was 1.0 years (0.4).

Fair value on interest-bearing loans was SEK 1,451m (261). The fair value of interestbearing liabilities to credit institutions is assumed to correspond to the book value since they mainly have a short fixed-term of less than three months. JM Group has no outstanding interest rate derivatives as at December 31, 2008.

Interest risk exposure, including derivatives

	2008		2007
Year for interest conversion	Loan amount (SEKm)	Average interest (%)	Loan amount (SEKm)	Average interest (%)
2008	-	-	261	4.7
2009	732	5.4	-	-
2010	719	5.0	-	-
Pension liability 1)	513	4.0	499	4.5
Total	1,964	4.9	760	4.6

1) Pension interest adjusted annually.

Note 23 cont'd.

The average interest rate on interest-bearing liabilities as at December 31, 2008 excluding pension liabilities was 5.2 percent (4.7). A 1 percent change in the market interest rate corresponds with an effect on earnings of about SEK 6m for the part of the loan portfolio traded during 2009. The calculation is an approximation and is based on the assumption of a simultaneous change in all interest rate curves.

Cash and cash equivalents

Cash and cash equivalents consist of cash and short-term investments. According to JM's financial policy, the company may only invest excess liquidity in liquid instruments issued by issuers with a credit rating of at least A- according to Standard & Poor's or similar credit rating agency. The investments are short-term with a term of between one day and three months. See note 21 for breakdown between cash and short-term investments.

Financing and liquidity risk

Financing and liquidity risk refers to the risk that loans could become more difficult and more expensive to refinance and that the Group cannot fulfill its current payment obligations due to inadequate liquidity. The Group manages its financing risk by signing long-term binding credit agreements with different maturities with several different institutions. According to the policy, the average term of framework agreements should be two to three years.

Binding loan commitments		Check
Maturity	Total	credit	2009	2010	2011–2012
Loan commitments (SEKm)	2,800	400	850	550	1,000

The Group has unutilized approved credit lines of SEK 2,800m.

The Group maintains cash and cash equivalents, together with approved credit lines, of at least 10 percent of JM's revenues in order for the Group to handle investments and current payments.

Foreign exchange risk

During the year the Group extended loans to subsidiaries abroad. The exposure is hedged in its entirety. Because of extremely limited transaction volumes in foreign currency the Group has not engaged in hedging activities for these volumes.

Credit risk

Credit risk associated with financial services

Credit risk exposure in the form of counterparty risk arises with investment of cash and cash equivalents and during derivative trading. In order to limit credit risks the Group has prepared a counterparty list that sets a maximum exposure in relation to each approved party. ISDA agreements (International Swaps and Derivative Association) or equivalent Swedish bank agreements have been prepared with those counterparties that are used for transactions with derivative instruments.

Credit risk associated with accounts receivable

The JM Group's customers are mainly tenant-owners' associations and future owners of private homes. The Group also engages in project development of commercial premises and contracting services. The Group also has tenants in both residential and commercial premises.

Credit risk exposure relating to tenant-owners' associations is deemed to be limited since financing of production takes place through the association's bank loan, purchased by JM. A similar arrangement applies for customers who buy their own homes. To ensure the customer's ability to pay a credit check is always carried out. Uncertainty relating to projects is managed by applying the rules for profit recognition, see note 1 Accounting principles. Accounts receivable for housing production amounts to SEK 273m (236).

Credit risk exposure in relation to commercial customers, contracting and for rentals of residential and commercial premises has a somewhat different nature. Accounts receivable for these groups amounts to SEK 234m (203).

The provision for doubtful receivables amounts to SEK 6m (10). During the year the Group used SEK 1.0m (1.5) of earlier provisions. Accounts receivable older than 60 days amounts to SEK 40m (79). Provision and utilization of the provision for doubtful receivables were recognized in the income statement.

Aged accounts receivable

Dec. 31, 2008	Nomi	Not	<30	30–60	61–90	< 90
SEKm	nal	due	days	days	days	days
Residential	273	154	52	28	0	39
Contracting	240	216	19	4	0	1
Other	– 6	– 6	0	0	0	0
Total	507	364	71	32	0	40
Number of invoices	1,095	791	125	34	0	145

Dec. 31, 2007	Nomi	Not	<30	30–60	61–90	< 90
SEKm	nal	due	days	days	days	days
Residential	236	113	52	6	0	65
Contracting	200	130	53	4	2	11
Other	3	2	0	0	0	1
Total	439	245	105	10	2	77
Number of invoices	1,285	851	184	29	10	211

Credit risk analysis customers

Dec. 31, 2008	Number of	In % of	In % of
Interval	customers	number	portfolio
Exposure interval < SEK 1m	717	92	16
Exposure interval SEK 1–5m	45	6	23
Exposure interval > SEK 5m	16	2	61
Total	778	100	100

Dec. 31, 2007	Number of	In % of	In % of
Interval	customers	number	portfolio
Exposure interval < SEK 1m	798	92	18
Exposure interval SEK 1–5m	55	6	29
Exposure interval > SEK 5m	21	2	53
Total	874	100	100

Valuation of financial assets and liabilities

JM used generally accepted methods for calculating the fair value of the Group's financial instruments as of December 31, 2008 and 2007. The fair value of interest-bearing liabilities to credit institutions is assumed to correspond to the book value since they mainly have a short fixed-term of less than three months. Notes payable for property acquisitions become payable in conjunction with fulfillment of various conditions, such as approval of local plans or when the project begins. The fair value of notes payable for property acquisitions is therefore assumed to be equal to the carrying amount when the liabilities are payable on demand. For all other financial assets and liabilities, such as cash and cash equivalents, accounts receivable, and accounts payable, the carrying amount is assumed to provide a good approximation of fair value/cost. The Group applies trade date accounting.

The following table shows fair value, carrying amount and information about the category to which the JM Group's financial instruments belong in accordance with IAS 39 Financial instruments: Recognition and measurement.

	Category according	Dec. 31, 2008		Dec. 31, 2007
Fair value financial	to	Carrying	Fair	Carrying	Fair
instruments	IAS 391)	amount	value	amount	value
Assets
Interest-bearing financial
assets	L&R	11	9	12	9
Other financial assets	L&R	10	10	11	11
Other long-term receivables	L&R	9	9	10	10
Other long-term securities	AFS	1	1	1	1
Accounts receivable	L&R	507	507	439	439
Other current receivables	L&R / n/a	874	874	265	265
Receivables from property
sales	L&R	474	474	64	64
Other	n/a	400	400	201	201
Cash, cash equivalents, and
short-term investments	L&R	1,111	1,111	2,061	2,061
Cash and cash equivalents	L&R	1,111	1,111	1,661	1,661
Short-term investments	L&R	0	0	400	400
Liabilities
Long-term interest-bearing
liabilities	FLAC	314	314	216	216
VConvertible loan	FLAC	192	192	135	135
Other non-current interest
bearing liabilities borrowing	FLAC	122	122	81	81
Other non-current liabilities FLAC		271	271	978	978
Accounts payable	FLAC	497	497	616	616
Current interest-bearing
liabilities	FLAC	1,137	1,137	45	45
Other current liabilities	FLAC	414	414	771	771
Derivative instruments	FlrIS	14	14	-	-
Other current liabilities	FLAC	400	400	771	771

1) Classification in accordance with IAS 39, explanation to abbreviations

AFS Available-for-sale financial assets

L&R Loans and receivables

FLAC Financial liabilities measured at amortized cost

FLrIS Financial liabilities are recognized at fair value in the income statement

n/a IAS 39 does not apply

Note 23 cont'd.

Financial derivative instruments

JM uses financial derivative instruments to manage interest risks and on a selective basis, occasional currency risks. Derivative instruments may only be used to minimize risks. All gains and losses that arise in market valuations of instruments are recognized directly against profits, since the JM Group does not apply hedge accounting for existing derivatives.

JM Group has no outstanding interest rate derivatives as at December 31, 2008. Currency derivatives for Group loan to international company remeasured at fair value to SEK –14m.

Asset management

JM manages capital, which comprises the consolidated equity, with the purpose of providing JM shareholders with a higher total return than shareholders in companies with similar operations and risk profile.

JM's ambition is to maintain an optimal composition of assets and capital structure over time, suitable for the company's project development activities According to the stated objectives for capital structure, the equity ratio should be to at least 35 percent. The equity ratio target is a simplified consequence of a more extensive analysis where shareholders' equity has been allocated to the balance sheet's different asset classes and types of operations, taking assessed operating risk into account. The relevant key indicators can be seen in the five-year overview on page 73.

Also see the section "Business concept, goals and strategies" and "The JM Share".

NOTE 24	PROVISIONS FOR PENSIONS
	AND SIMILAR COMMITMENTS

Defined benefit plans

JM has defined benefit plans for pensions in Sweden and Norway. The most significant defined benefit plans are in Sweden and refer to the ITP plan and the alternative ITP offered by the company within the framework of this plan.

Defined contribution plans

These plans mainly comprise retirement pension and family pension.

Premiums are paid regularly during the year by the Group company concerned to separate legal entities, such as insurance companies. The pension cost for the period is recognized in the income statement.

Obligations regarding employee benefits, defined benefit plans

The following provisions for pension obligations have been made in the balance sheet:

Group	2008	2007
ension obligations, funded plans	345	259
Managed assets' fair value	– 261	– 215
Net sum, funded plans	84	44
Pension obligations, unfunded plans	655	584
Unrecognized actuarial gains (+), losses (–), pension
commitments	– 230	– 136
Unrecognized actuarial gains (+), losses (–), plan assets	4	7
Net liability according to balance sheet	513	499

Pension commitments, plan assets and provisions for pension obligations as well as actuarial gains/losses for the defined benefit pension plans have developed as follows.

Total pension commitments	2008	2007
Opening balance, January 1	843	809
Benefits earned during the year	44	39
Interest expense	38	32
Benefits paid	– 15	– 13
Reclassification	– 7	– 3
Unrecognized actuarial gains (–), losses (+)	98	– 22
Translation differences	– 1	1
Closing balance, December 31	1,000	843
Plan assets, fair value	2008	2007
Opening balance, January 1	215	152
Anticipated return on plan assets	10	7
Funds added to the plan	48	41
Reclassification	– 7	– 3
Unrecognized actuarial gains (+), losses (-)	– 4	17
Translation differences	– 1	1
Closing balance, December 31	261	215

Reconciliation pension provisions			2008	2007
Opening balance, January 1			499	482
Pension costs, defined benefit plans			76	71
Benefits paid			– 15	– 13
Funds added to the plan			– 48	– 41
Translation differences			1	0
Closing balance, December 31			513	499
Actuarial gains (+), losses (–)	2008	2007	2006	2005
Total pension commitments	1,000	843	809	793
Plan assets, fair value	261	215	152	136
Experience adjustments, percentage
of this year's unrecognized actuarial gains (+) and loss (–)
Pension obligations (SEK m)	– 10	3	7	– 24
Percent of total value of pension
commitments	–1.0	0.4	0.9	–3.1
Plan assets (SEK m)	– 3.0	17.0	– 6.0	– 0.8
Percent of total value of managed assets	–1.1	7.9	–4.0	–0.6
Pension expenses			2008	2007
Benefits earned during the year			44	39
Interest on obligations			38	32
Anticipated return on plan assets			– 10	– 7
Amortization actuarial loss			4	7
Pension costs, defined benefit plans			76	71
Pension costs, defined contribution plans			74	63
Social security expenses, defined benefit and defined
contribution plans			26	25
Total			176	159

Of the above pension costs, SEK 28m (25) is recognized as a financial cost, corresponding with the net of interest on obligations and anticipated return on plan assets.

JM uses the "corridor" approach to recognize actuarial gains and losses are gradually amortized onto the income statement and balance sheet. Actuarial gains and losses arise when the outcome deviates from underlying assumptions. Since JM's total actuarial loss as at December 31, 2008 is greater than 10 percent of the actual pension obligation, JM must expense a small part of the actuarial loss in 2009. For JM this means an increased pension cost in 2009 of SEK 14m, including social security costs, relating to this part.

JM's expects cash flow for the pension provision in 2009 to be SEK –69m.

Actuarial assumptions

The most important actuarial assumptions as per closing day for each geographic market can be seen in the following list:

Sweden
2008	2007
4.00	4.50
	4.00
	3.50
	2.00
2.75	2.75
	4.00 3.50 2.00

The discount rate is determined for each geographic market taking the market return on corporate bonds on the closing date into account. In Sweden and Norway, where there is no functioning market for such bonds, the market return on government bonds is used and a premium for a longer maturity added based on the duration of the pension obligations.

The anticipated return on plan assets corresponds to the anticipated return overtime in the pension funds that secure these obligations. As at Dec. 31, 2008 managed assets consist of 45 percent (46) equities, 37 percent (41) fixed-income securities and 18 percent (13) other.

The anticipated salary increase factor corresponds to anticipated future salary increases as a composite effect of inflation, period of service, and promotion.

The inflation factor corresponds in most pension plans to the anticipated pension upward adjustment (or indexing). In this component JM has chosen to use the inflation targets set up by the national central banks.

JM Sweden uses mortality table FFFS 2007:31 to determine mortality assumptions. FFFS 2007:31 specifies various mortality assumptions depending on year of birth. The more recently an employee was born, the longer the remaining life expectancy after retirement. In practical terms, this means that when calculating its pension liability, JM assumes that a man in Sweden who is 65 years old today will live for 21 years after retirement and a woman for 24 years, while a man born in 1980 who turns 65 will live for 24 years after retirement and a woman for 25 years.

NOTE 25 OTHER PROVISIONS

	Product warranty provisions
	2008	2007
Opening balance, January 1	258	205
Dissolution	– 139	– 32
Provisions	159	85
Closing balance, December 1)	278	258
1) Of which short-term part of provisions for	112	105

Provisions for guarantees relate to costs that could arise during the guarantee period and are reported as non-current and current liabilities in the balance sheet.

The amount of the provision is primarily based on the number of residential units per project and is charged to the project upon conclusion. The longest term for product warranty provisions is ten years, while the majority of product warranty provisions are for two to three years.

Since the effect of when in time payment occurs is immaterial, expected future payments are not calculated at present value.

NOTE 26 DEFERRED TAX ASSETS AND LIABILITIES

	2008	2007
Deferred tax liability on untaxed reserves 1)	110	96
Other deferred tax liability *	896	693
Sub-total	1,006	789
Less deferred tax assets 2)	– 106	– 83
Net provisions for tax	900	706
Deferred tax receivable	80	6
* Other deferred tax liability allocated to
Project properties 3)	8	8
Development properties 3)	295	243
Provision for taxation for write-down
(not yet approved)	525	383
Other current assets	68	59
Total	896	693

1) Tax rules in Sweden allow companies to postpone taxation through provisions to untaxed reserves in the balance sheet via appropriations in the income statement. However, untaxed reserves or appropriations are not stated in the consolidated financial statements. Untaxed reserves are divided between deferred tax liability and restricted reserves respectively in shareholders' equity.

2) Mainly pertains to current liabilities.

3) Fiscal difference and carrying amount.

In 2008 the Swedish National Tax Agency (Skatteverket) audited JM for tax years 2006 and 2007. The tax notice levied a tax of SEK 66m plus an additional tax assessment in arrears pertaining to the purchase and sale of a number of properties. JM is appealing the decision in the county administrative court and no provision was made in the annual accounts. With the support of external tax counseling, it is JM's firm understanding that the transactions were reported and declared according to the relevant regulatory framework.

	PROGRESS BILLINGS IN EXCESS OF
NOTE 27	RECOGNIZED REVENUE

	2008	2007
Accumulated billing on account for work in progress	17,531	14,411
Recognized revenue in work in progress	– 15,948	– 13,281
Total	1,583	1,130

NOTE 28 ACCRUALS AND DEFERRED INCOME

	2008	2007
Personnel-related items	518	401
Prepaid rental income	21	12
Other accruals	351	328
Total	890	741

NOTE 29 PLEDGED ASSETS AND CONTINGENT LIABILITIES

	2008	2007
Assets pledged to secure own provisions and liabilities
Corporate mortgages	100	100
Property mortgages	112	62
Total 1)	212	162
Contingent liabilities
Guarantee commitments, other 2)	5,039	6,502
Guarantees in connection with assignments	426	492
Payment and rental guarantees	13	10
Other contingent liabilities	12	11
Total	5,490	7,015

1) The corporate mortgage relates to the pension liability that JM Sweden has with PRI. Property mortgages are only granted to a limited extent for financing with credit institutions.

2) During the production period of a tenant-owner cooperative, the JM Group provides guarantees for part of the short-term financing that exceeds a cooperative's future long-term loans. Guarantee commitments, other relate entirely to this short-term financing. The long-term loans are secured by the mortgage deeds taken out by the association. The reduction in guarantee commitments is due to the reduction of volume that occurred in the operation.

The Group also has obligations to acquire unsold participations in tenant-owner associations formed by JM.

A tenant-owner association's only revenue is its monthly charges. JM provides a seven year guarantee to ensure that the association receives the estimated monthly charges. This guarantee comprises an undertaking to buy such apartments as are returned to the association from the first owner. JM then buys the apartment for SEK 1 and then pays the monthly charge to the association until JM in its turn has sold the apartment. This guarantee has existed since 1993 and has never been utilized. JM considers it unlikely that the guarantee will need to be met in other than exceptional cases.

AB Bostadsgaranti has a recourse agreement against JM AB regarding their investment guarantee for paid contributions and charges for grant of enjoyment. The guarantee primarily ensures that the association can repay a reasonable amount (maximum contribution and charges) to the tenant-owner who has a right of termination due to significant increases in charges during the first year after final accounts, after which Bostadsgaranti has no liability to pay anything. Bostadsgaranti has not paid out anything since 1962.

NOTE 30 RELATED PARTY DISCLOSURES

Related party disclosures can be seen in notes 3 and 16. The Group's transactions with associated companies, over and above what is specified in note 3 Employees and personnel costs, only addresses associated companies and joint ventures, are limited in scope and have occurred at market rates.

INCOME STATEMENT AND CASH FLOW STATEMENT—PARENT COMPANY 67

INCOME STATEMENT— PARENT COMPANY, SEKm	Note	2008	2007
	1
Net sales		8,702	9,397
Costs for production and management	2, 3	– 6,983	– 7,008
Gross profit		1,719	2,389
Selling and administrative expenses	2, 3, 4	– 512	– 470
Gains on the sale of properties	5	36	65
Write-downs on properties	6	– 75	-
Operating profit		1,168	1,984
Result from financial items	7
Result from group companies		374	– 285
Result from associated companies		1	1
Result from other financial assets		5	0
Result from financial current assets		108	48
Interest expenses and similar income statement items		– 96	– 34
Profit before appropriations and tax		1,560	1,714
Appropriations	8	– 72	– 214
Profit before tax		1,488	1,500
Taxes	9	– 60	– 139
Net profit for the year		1,428	1,361

CASH FLOW STATEMENT— PARENT COMPANY, SEKm Note	2008	2007
1 OPERATING ACTIVITIES
Operating profit before financial items	1,168	1,984
Depreciations and amortization	5	5
Write-downs	75	-
Adjustment for non-cash items	– 15	– 23
Sub-total, cash flow from operating activities	1,233	1,966
Interest received	110	48
Dividends received	741	1,021
Interest paid and other financial expenses	– 42	– 10
Taxes paid Cash flow from operating activities before change in working capital	– 86 1,956	– 296 2,729
Investments in development properties, etc.	– 572	– 694
Payment on account for development properties etc.	792	1,060
Increase/decrease in other current receivables, etc.	– 301	291
Increase/ decrease other current operating liabilities	– 928	19
Cash flow before investments and sales of project properties	947	3,405
Investment in project properties etc.	– 21	– 54
Sale of project properties etc.	122	0
Cash flow from operating activities	1,048	3,351
INVESTING ACTIVITIES
Investment in property, plant, and equipment	– 1	– 5
Investment in group companies and associated companies etc.	– 418	– 1,375
Change in financial assets	– 23	– 22
Cash flow from investing activities	– 442	– 1,402
FINANCING ACTIVITIES
Loans raised	410	154
Amortization of debt	– 350	-
Redemption and repurchase of own shares	– 1,008	– 1,022
Dividend	– 489	– 415
Cash flow from financing activities	– 1,437	– 1,283
Cash flow for the year	– 831	666
Cash and cash equivalents, January 1	1,828	1,162
Cash and cash equivalents, December 31	997	1,828

BALANCE SHEET— PARENT COMPANY, SEKm	Note	Dec. 31, 2008	Dec. 31, 2007
	1
ASSETS
Non-current assets
Plant, property and equipment
Machinery and equipment	10	8	11
Financial fixed assets	11
Participations in group companies		1,141	1,098
Non-current interest-bearing receivables in Group companies		-	320
Participations in associates		104	80
Non-current receivables in associated companies		43	43
Other non-current receivables		7	8
Deferred tax assets		59	32
		1,354	1,581
Total non-current assets		1,362	1,592
Current assets
Project properties	12	15	56
Development properties	12	2,536	2,855
Participations in tenant-owners' associations, etc.	13	131	73
Current receivables
Accounts receivable		220	172
Other current receivables		325	206
Current interest-bearing receivables in Group companies		1,631	795
Recognized revenue less progress billings	14	691	339
Prepaid expenses and accrued income		7	13
		2,874	1,525
Cash and cash equivalents	15	997	1,828
Total current assets		6,553	6,337
TOTAL ASSETS		7,915	7,929

EQUITY AND LIABILITIES

		89
	83	89
	11	8
	141	337
	1,428	1,361
	1,580	1,706
	1,663	1,795
16	417	345
17	538	510
18	215	198
	753	708
19	223	164
	326	978
	549	1,142
		284
		-
	266	170
19	1,536	2,166
	14	-
20	1,210	852
21	538	467
	4,533	3,939
	7,915	7,929
22	120	120
22	7,009	7,921
	19	83 250 719

1) Statement of changes in shareholders' equity — parent company.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY—PARENT COMPANY, SEKm	Share capital	Statutory reserve	Share premium reserve	Retained earnings	Total share holders' equity
Opening balance January 1, 2007	93	754	-	940	1,787
Transfer to retained earnings	-	– 754	-	754	-
Group contributions received	-	-	-	104	104
Tax effect of Group contributions received	-	-	-	– 29	– 29
Redemption of own shares	– 4	-	-	– 1,009	– 1,013
Dividend	-	-	-	– 415	– 415
Equity component of convertible debentures	-	-	8	-	8
Share-based payments regulated with equity instruments	-	-	-	1	1
Repurchase of own shares	-	-	-	– 9	– 9
Net profit for the year	-	-	-	1,361	1,361
Closing balance, December 31, 2007	89	-	8	1,698	1,795
Opening balance January 1, 2008	89	-	8	1,698	1,795
Group contributions received	-	-	-	– 97	– 97
Tax effect of Group contributions received	-	-	-	27	27
Redemption of own shares	–6	-	-	– 986	– 992
Dividend	-	-	-	– 489	– 489
Equity component of convertible debentures	-	-	3	-	3
Share-based payments regulated with equity instruments	-	-	-	3	3
Repurchase of own shares	-	-	-	– 15	– 15
Net profit for the year	-	-	-	1,428	1,428
Closing balance, December 31, 2008	83	-	11	1,569	1,663

Number of shares (1 vote/share) as at December 31, 2008, amounts to till 83,401,883 (88,914,308) of which JM AB repurchased 185,000 shares (35,000). Par value per share is SEK 1.

The proposed dividend for 2008 is SEK 0 per share (5,50).

NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES

Amounts in SEK million unless stated otherwise.

For the Parent Company's accounting policies, please refer to the Group's accounting and valuation principles page 51.

NOTE 2 EMPLOYEES AND PERSONNEL COSTS

	2008	2007
Average number of employees (all in Sweden)	1,719	1,680
of which men, %	81	82
Wages, salaries, other remuneration and social
security expenses
President and Board of Directors	9	8
(variable compensation)	(2)	(2)
Other employees	711	644
(variable compensation)	(63)	(52)
Total salaries and remunerations	720	652
(variable compensation)	(65)	(54)
Social security expenses	366	340
(of which pension costs)	(132)1)	(124)1)
Total Parent Company	1,086	992

1) Of the Parent Company's pension costs, SEK 1.8m (1.7) pertains to the Group's president. The company's outstanding pension commitments to the President amount to SEK 0.4m (0.3). The company has no pension costs or pension commitments to the rest of the Board.

For information about benefits to JM AB senior executives, please see the Group's note 3.

Absence due to illness, Parent Company

Total absence due to illness amounts to 4.3 percent (4.5) of regular working hours. Of total absence due to illness, 46 percent (48) comprises absence due to illness for more than 60 days.

Absence due to illness by age, %	2008	2007
–29 years	4.5	4.8
30–49 years	3.5	3.6
50 and older	5.4	6.1

Absence due to illness by gender, %	2008	2007
Men	4.8	4.8
Women	2.4	3.3

NOTE 3 DEPRECIATION ACCORDING TO PLAN

	2008	2007
Equipment and other tools	– 5	– 5
Total	– 5	– 5

The following depreciation rates are applied:

Computers and other equipment 20–33 percent.

NOTE 4	FEES AND REMUNERATION TO AUDITORS
		2008	2007

Ernst & Young
Auditing services	2.7	2.5
Other services	0.2	0.3
Total	2.9	2.8

NOTE 5 GAINS ON THE SALE OF PROPERTIES

	2008	2007
Sales values
Project properties	66	79
Development properties	59	92
Total	125	171
Carrying amount
Project properties	– 44	– 46
Development properties	– 45	– 60
Total	– 89	– 106
Net Result
Project properties	22	33
Development properties	14	32
Total	36	65

NOTE 6 WRITE-DOWNS ON PROPERTIES

	2008	2007
Development properties	– 75	-
Total	– 75	-

NOTE 7 RESULT FROM FINANCIAL ITEMS

	Result from Group companies		Result from associated companies		Result from other financial non-current assets		Result from financial current assets		Interest expense and similar profit/ loss items		Total
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Dividend	740	1,018	1	1	0	0	-	-	-	-	741	1,019
Sales	759	– 14	-	-	-	-	-	-	-	-	759	– 14
Write-down	– 1,125	– 1,289	-	-	-	-	-	-	-	-	– 1,125	– 1,289
Interest income	-	-	-	-	0	0	40	46	-	-	40	46
Income, reassessment of derivative	-	-	-	-	-	-	38	-	-	-	38	-
Interest income, Group companies	-	-	-	-	5	-	30	2	-	-	35	2
Interest expense	-	-	-	-	-	-	-	-	– 29	– 12	– 29	– 12
Expense, reassessment of derivative	-	-	-	-	-	-	-	-	– 37	0	– 37	0
Interest portion in this year's pension costs	-	-	-	-	-	-	-	-	– 30	– 22	– 30	– 22
Total	374	– 285	1	1	5	0	108	48	– 96	– 34	392	– 270

NOTE 8 APPROPRIATIONS

	2008	2007
Appropriation to tax allocation reserve	– 79	–216
Adjustment, previous year's appropriation to tax	7	2
Total	– 72	–214

NOTE 9 TAXES

	2008	2007
Net profit/loss before taxes	1,488	1,500
Current tax	– 87	– 151
Deferred tax	27	12
Total tax	– 60	– 139

Difference between reported tax and nominal tax rate 28 percent

Profit before tax ²28 %	– 417	– 420
Adjustment of tax from previous years	6	2
Non-taxable income	422	292
Non-deductible expense	– 69	– 12
Tax untaxed reserve (tax allocation reserve)	– 3	– 1
Reassessment of deferred tax attributable to lower
tax on income 2009	– 4	-
Recalculation of deferred tax from previous years	5	-
Total	– 60	– 139

NOTE 11 FINANCIAL FIXED ASSETS

Participa tions in Group companies			Long-term interest bearing receiv ables in Group companies		Participations in associated companies		Long-term receivables in associated companies		Other long-term securities		receivables	Long-term		Deferred tax receivables		Total
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Opening cost
Opening balance, January 1	1,098	1,025	320	320	80	60	43	43	0	0	8	10	32	28	1,581	1,486
New purchases	1,214	1,401	-	-	24	21	-	-	-	-	-	-	-	-	1,238	1,422
Additional receivables	-	-	-	-	-	-	-	-	-	-	-	-	27	12	27	12
Settled receivables	-	-	– 320	-	-	-	-	-	-	-	– 1	– 2	-	– 8	– 321	– 10
Merger	– 1	– 12	-	-	-	-	-	-	-	-	-	-	-	-	– 1	– 12
Sales	– 45	– 27	-	-	-	– 1	-	-	-	-	-	-	-	-	– 45	– 28
Write-downs for the year 1)	– 1,125 – 1,289		-	-	-	-	-	-	-	-	-	-	-		- – 1,125 – 1,289
Closing balance,
December 31	1,141	1,098	-	320	104	80	43	43	0	0	7	8	59	32	1,354	1,581

For specification of the Parent Company's and the Group's participation in wholly owned associated companies and group companies, see the Group's notes 14 and 16. 1) Shares in subsidiary were written down to equal the value of equity.

NOTE 10 MACHINERY AND EQUIPMENT

	2008	2007
Opening cost
Opening balance, January 1	71	81
New purchases	1	5
Sales	– 5	– 15
Closing balance, December 31	67	71
Accumulated depreciation according to plan
Opening balance, January 1	– 60	– 70
Depreciation for the year	– 5	– 5
Sales	6	15
Closing balance, December 31	– 59	– 60
Closing residual value according to plan	8	11

NOTE 12 PROJECT PROPERTIES AND

DEVELOPMENT PROPERTIES
	Project properties			Development properties
	2008	2007	2008	2007
Opening cost
Opening balance, January 1	56	55	2,907	2,306
New purchases	21	55	414	1,284
Reclassifications	-	– 8	-	8
Merger	-	-	5	295
Transferred to production	– 18	-	– 618	– 926
Sales	– 44	– 46	– 52	– 60
Closing balance, December 31	15	56	2,656	2,907
Accumulated write-downs
Opening balance, January 1	-	-	– 52	– 52
Write-downs for the year	-	-	– 75	-
Sales	-	-	7	-
Closing balance, December 31	-	-	– 120	– 52
Closing residual value according
to plan	15	56	2,536	2,855
Tax assessment values	1	39	2,389	1,978

Reported residual value for the part of development properties recognized at fair value amounts to SEK 112m (11).

PARTICIPATIONS IN TENANT-OWNER NOTE 13 ASSOCIATIONS ETC.
		2008	2007
Opening cost
Opening balance, January 1		73	54
New purchases		277	80
Sales		– 219	– 61
Closing balance, December 31		131	73

NOTE 14 RECOGNIZED REVENUE LESS PROGRESS BILLINGS

	2008	2007
Recognized revenue in work in progress	2,052	3,494
Accumulated billing on account for work in progress	– 1,361	– 3,155
Total	691	339

NOTE 15 CASH AND CASH EQUIVALENTS

	2008	2007
Cash and bank balances	997	1,428
Short-term investments	-	400
Total	997	1,828

Short-term investments have a maturity ranging from 1 day up to 3 months.

NOTE 16 UNTAXED RESERVES

	2008	2007
Tax allocation reserve, 2007 taxation	129	131
Tax allocation reserve, 2008 taxation	209	214
Tax allocation reserve, 2009 taxation	79	-
Total	417	345

NOTE 17 PROVISIONS FOR PENSIONS AND SIMILAR COMMITMENTS

	2008	2007
Opening balance, January 1	510	485
Benefits earned during the period	12	12
Interest expense	18	15
Payment of pensions	– 15	– 13
Other	13	11
Closing balance, December 31	538	510

In the Parent Company only the ITP plan is entered as a liability as a pension provision; it has no assets that protect the commitment.

NOTE 18 PRODUCT WARRANTY PROVISIONS

	2008	2007
Opening balance, January 1	198	160
Dissolution	– 137	– 32
Provisions	154	70
Closing balance, December 31	215	198

NOTE 19 INTEREST-BEARING LIABILITIES

Long-term interest-bearing liabilities	2008	2007
Other liabilities 1–5 years from closing day	21	20
Convertible loan 1–5 years	202	144
Total	223	164
Current interest-bearing liabilities	2008	2007
Other current liabilities	719	-
Liabilities to group companies	1,536	2,166
Total	2,255	2,166

Other current liabilities refers to a note payable for the acquisition of Dalénum 2007, which previously was long-term, non interest-bearing.

Liabilities to credit institutions, confirmed

credits	2008	2007
Bank overdraft facility	400	400
Granted credit agreement maturity within 1 year	850	350
Granted credit agreement maturity more than 1 year	1,550	2,050
Unused part	– 2,800	– 2,800
Unused credit agreement	-	-

Credit agreements carry fixed interest.

NOTE 20 PROGRESS BILLINGS IN EXCESS OF RECOGNIZED REVENUE

	2008	2007
Accumulated billing on account for work in progress	15,780	12,089
Recognized revenue in work in progress	– 14,570	– 11,237
Total	1,210	852

NOTE 21 ACCRUALS AND DEFERRED INCOME

	2008	2007
Personnel-related items	370	268
Prepaid rental income	5	6
Other accruals	163	193
Total	538	467

NOTE 22 PLEDGED ASSETS AND CONTINGENT LIABILITIES

	2008	2007
Assets pledged to secure own provisions
and liabilities
Corporate mortgages 1)	100	100
Property mortgages	20	20
Total	120	120
Contingent liabilities
Guarantee commitments, other 2)	5,039	6,469
Guarantees on behalf of group companies 3)	1,758	1,205
Guarantees in connection with assignments	193	229
Payment and rental guarantees	7	7
Other contingent liabilities	12	11
Total	7,009	7,921

1, 2) See the Group's note 29 for comments.

3) Guarantees on behalf of group companies mainly relate to commitments for foreign companies and the subsidiaries Seniorgården AB, AB Borätt, and JM Entreprenad AB.

72 FIVE-YEAR OVERVEIW—GROUP

Amounts in SEK million unless stated otherwise.

INCOME STATEMENT	2008	2007	2006	2005	2004
Income	12,229	12,731	12,065	9,887	8,532
Costs for production and management	– 10,180	– 9,939	– 9,737	– 8,327	– 7,347
Gross profit	2,049	2,792	2,328	1,560	1,185
Selling and administrative expenses	– 719	– 673	– 616	– 576	– 542
Gains on the sale of properties	73	182	169	247	164
Impairment losses on properties	– 320	-	-	-	– 15
Operating profit	1,083	2,301	1,881	1,231	792
Financial income and expenses	– 31	– 4	– 29	– 80	– 145
Profit before tax	1,052	2,297	1,852	1,151	647
Taxes	– 234	– 632	– 284	– 175	– 173
Net profit for the year	818	1,665	1,568	976	474
INCOME STATEMENT BY FUNCTION
Production
Recognized revenue	12,027	12,555	11,894	9,615	8,197
Production costs	– 10,002	– 9,805	– 9,609	– 8,137	– 7,134
Profit from production operations	2,025	2,750	2,285	1,478	1,063
Development properties
Rental income	85	94	95	80	93
Operating expenses	– 57	– 58	– 67	– 60	– 68
Property tax Profit from development properties	– 21 7	– 18 18	– 14 14	– 11 9	– 15 10
Project properties
Rental income	117	82	76	192	242
Operating expenses	– 98	– 56	– 46	– 112	– 122
Property tax	– 2	– 2	– 1	– 7	– 8
Profit from project properties	17	24	29	73	112
Gross profit	2,049	2,792	2,328	1,560	1,185
Selling and administrative expenses	– 662	– 624	– 571	– 513	– 475
Property sales
Sales values	748	653	1,000	1,752	1,018
Carrying amount	– 675	– 471	– 831	– 1,505	– 854
Gains on the sale of properties	73	182	169	247	164
Impairment losses on properties	– 320	-	-	-	– 15
Group-wide expenses	– 57	– 49	– 45	– 63	– 67
Operating profit	1,083	2,301	1,881	1,231	792
BALANCE SHEET	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2005	Dec. 31, 2004
ASSETS
Non-current assets	184	121	118	134	157
Project properties	614	790	823	1,183	2,246
Development properties	5,620	5,282	4,348	2,925	2,971
Participations in tenant-owner associations, etc.	171	104	73	38	243
Current receivables 1)	2,355	1,558	1,535	1,241	1,350
Cash and cash equivalents	1,111	2,061	1,509	2,634	1,285
Total current assets	9,871	9,795	8,288	8,021	8,095
TOTAL ASSETS	10,055	9,916	8,406	8,155	8,252
EQUITY AND LIABILITIES2)
Shareholders' equity	3,241	3,893	3,590	3,311	3,465
Long-term interest-bearing liabilities	314	216	73	626	1,169
Other non-current liabilities	271	978	597	-	-
Long-term provisions	1,579	1,358	938	850	1,028
Total non-current liabilities	2,164	2,552	1,608	1,476	2,197
Current interest-bearing liabilities	1,137	45	114	22	308
Other current liabilities	3,401	3,321	3,024	3,283	2,221
Current provisions	112	105	70	63	61
Total current liabilities	4,650	3,471	3,208	3,368	2,590
TOTAL EQUITY AND LIABILITIES	10,055	9,916	8,406	8,155	8,252
1) Including receivables from property sales	474	64	2	37	68
2) Including liabilities for property acquisition	1,140	1,600	998	260	-

CASH FLOW STATEMENT	2008	2007	2006	2005	2004
Cash flow from operating activities	101	1,826	667	3,368	2,161
Cash flow from investing activities	– 4	– 7	– 7	6	– 11
Cash flow from financing activities	– 1,055	– 1,279	– 1,782	– 2,025	– 1,197
Total cash flow for the year	– 958	540	– 1,122	1,349	953
Cash and cash equivalents, December 31	1,111	2,061	1,509	2,634	1,285
INTEREST-BEARING NET LIABILITIES/RECEIVABLES
Interest-bearing net liabilities (+)/receivables (–), January 1	– 1,313	– 852	– 1,536	613	2,611
Change in interest-bearing net liabilities/receivables	2,155	– 461	684	– 2,149	– 1,998
Interest-bearing net liabilities (+)/receivables (–), December 31	842	– 1,313	– 852	– 1,536	613
DEVELOPMENT PROPERTIES
Carrying amount, January 1	5,282	4,348	2,925	2,971	3,631
New purchases	1,571	2,130	2,718	1,337	275
Transferred to production	– 781	– 1,159	– 1,168	– 1,232	– 892
Write-downs	– 320	-	-	-	-
Other	– 132	– 37	– 127	– 151	– 43
Carrying amount, December 31	5,620	5,282	4,348	2,925	2,971
HOUSING PRODUCTION
Number of available building rights	31,000	31,000	29,800	23,200	21,900
— recognized in the balance sheet	20,100	19,200	19,300	15,000	12,800
Number of housing starts	1,829	4,065	4,132	4,476	3,943
Number of residential units sold	1,871	3,880	3,790	4,240	4,315
PROJECT PROPERTIES
Market values	669	1,052	1,063	1,448	2,576
Carrying amount	614	790	823	1,183	2,246
Surplus values before deferred tax	55	262	240	265	330
PERSONNEL
Average number of employees	2,533	2,385	2,286	2,249	2,286
— abroad	353	318	343	272	267
Wages, salaries and remunerations	1,086	982	888	853	807
KEY FIGURES
Operating margin (%) 1)	8.9	18.1	15.6	12.5	9.3
Return on equity after tax (%)	22.9	44.5	45.4	28.8	14.4
Pre-tax return on capital employed (%)	23.8	52.9	44.4	26.0	14.3
Pre-tax return on total capital (%)	11.7	25.7	23.3	15.6	9.5
Equity/assets ratio (%) 1)	32	39	43	41	42
Interest-bearing loan (SEKm)	1,964	760	669	1,120	1,930
Debt/equity ratio (times)	0.3	-	-	-	0.2
Interest coverage ratio (times)	9.8	39.9	25.4	10.1	4.7
Interest-bearing liabilities/total assets (%)	20	8	8	14	23
Asset turnover rate (times)	1.22	1.39	1.46	1.21	0.98

1) Financial targets:

Operating margin should amount to 10 percent, including gains from property sales of 1–2 percentage points.

The visible equity ratio should amount to 35 percent over a business cycle. To the extent the visible equity ratio and interest coverage are assessed as exceeding the optimal capital structure on a continuing basis, capital will be transferred to shareholders in a form that is appropriate at the time.

Interest-bearing net liabilities/receivables

–3 –2 –1 0 1 2 3

74 QUARTERLY OVERVIEW—GROUP

Amounts in SEK million unless stated otherwise.

2008						2007
INCOME STATEMENT	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	12,229	2,850	2,550	3,663	3,166	12,731	3,879	2,643	3,182	3,027
Costs for production and management	– 10,180	– 2,626	– 2,116	– 2,926	– 2,512	– 9,939	– 2,955	– 2,057	– 2,476	– 2,451
Gross profit	2,049	224	434	737	654	2,792	924	586	706	576
Selling and administrative expenses	– 719	– 167	– 158	– 194	– 200	– 673	– 171	– 142	– 204	– 156
Gains on the sale of properties	73	52	0	18	3	182	39	37	30	76
Write-downs on properties	– 320	– 320	-	-	-	-	-	-	-	-
Operating profit	1,083	– 211	276	561	457	2,301	792	481	532	496
Financial income and expenses	– 31	– 13	– 14	– 4	0	– 4	14	– 13	– 1	– 4
Profit before tax	1,052	– 224	262	557	457	2,297	806	468	531	492
Taxes	– 234	127	– 74	– 158	– 129	– 632	– 215	– 132	– 151	– 134
Net profit for the period	818	– 97	188	399	328	1,665	591	336	380	358

BALANCE SHEET		Dec. 31, 2008	Sept. 30, 2008	June 30, 2008	March 31, 2008		Dec. 31, 2007	Sept. 30, 2007	June 30, 2007	Mar. 31, 2007
ASSETS
Non-current assets		184	108	130	117		121	119	120	140
Project properties		614	856	802	809		790	625	618	615
Development properties		5,620	6,160	5,640	5,748		5,282	4,368	4,365	4,230
Participations in tenant-owner associations, etc.		171	159	155	90		104	65	66	73
Current receivables		2,355	2,054	2,243	1,697		1,558	1,955	2,222	2,175
Cash and cash equivalents		1,111	578	663	1,797		2,061	1,254	1,706	1,745
Total current assets		9,871	9,807	9,503	10,141		9,795	8,267	8,977	8,838
TOTAL ASSETS		10,055	9,915	9,633	10,258		9,916	8,386	9,097	8,978
EQUITY AND LIABILITIES
Shareholders' equity		3,241	3,327	3,122	4,205		3,893	3,290	3,953	3,988
Long-term interest-bearing liabilities		314	315	261	224		216	177	176	63
Other non-current liabilities		271	1,120	1,154	1,197		978	251	255	598
Long-term provisions		1,579	1,652	1,634	1,409		1,358	1,064	1,039	976
Total non-current liabilities		2,164	3,087	3,049	2,830		2,552	1,492	1,470	1,637
Current interest-bearing liabilities		1,137	82	63	17		45	36	122	117
Other current liabilities		3,401	3,288	3,276	3,101		3,321	3,478	3,466	3,157
Current provisions		112	131	123	105		105	90	86	79
Total current liabilities		4,650	3,501	3,462	3,223		3,471	3,604	3,674	3,353
TOTAL EQUITY AND LIABILITIES		10,055	9,915	9,633	10,258		9,916	8,386	9,097	8,978
			2008					2007
CASH FLOW STATEMENT	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Cash flow from operating activities	101	242	– 196	290	– 235	1,826	745	560	249	272
Cash flow from investing activities	– 4	– 21	37	– 13	– 7	– 7	1	0	15	– 23
Cash flow from financing activities	– 1,055	306	72	– 1,414	– 19	– 1,279	49	– 1,012	– 303	– 13
Total cash flow for the period	– 958	527	– 87	– 1,137	– 261	540	795	– 452	– 39	236

Cash and cash equivalents at end
of the period	1,111	1,111	578	663	1,797	2,061	2,061	1,254	1,706	1,745
INTEREST-BEARING NET LIABILITIES/RECEIVABLES
Interest-bearing net liabilities (+)/
receivables (–) at beginning of period	– 1,313	304	132	– 1,076	– 1,313	– 852	– 566	– 937	– 1,100	– 852
Change in interest-bearing net
liabilities/receivables	2,155	538	172	1,208	237	– 461	– 747	371	163	– 248
Interest-bearing net liabilities (+)/
receivables (–) at end of period	842	842	304	132	– 1,076	– 1,313	– 1,313	– 566	– 937	– 1,100
DEVELOPMENT PROPERTIES
Opening balance at beginning of period	5,282	6,160	5,640	5,748	5,282	4,348	4,368	4,365	4,230	4,348
New purchases	1,571	161	665	138	607	2,130	1,366	237	361	166
Transferred to production	– 781	– 243	– 171	– 246	– 121	– 1,159	– 432	– 249	– 222	– 256
Write-downs	– 320	– 320	-	-	-	-	-	-	-	-
Other	– 132	– 138	26	0	– 20	– 37	– 20	15	– 4	– 28
Closing balance at end of period	5,620	5,620	6,160	5,640	5,748	5,282	5,282	4,368	4,365	4,230
KEY FIGURES
Operating margin (%)	8.9	– 7.4	10.8	15.3	14.4	18.1	20.4	18.2	16.7	16.4
Debt/equity ratio (times)	0.3	0.3	0.1	0.0	-	-	-	-	-	-
Equity/assets ratio (%)	32	32	34	32	41	39	39	39	43	44
Earnings per share (SEK)	9.50	– 1.20	2.30	4.50	3.70	18.30	6.60	3.70	4.10	3.90
Number of available building rights	31,000	31,000	32,900	33,000	32,500	31,000	31,000	30,300	30,300	30,100
Number of housing starts	1,829	346	246	733	504	4,065	1,047	848	1,332	838
Number of residential units sold	1,871	270	307	674	620	3,880	1,043	817	1,121	899

QUARTERLY OVERVIEW—BUSINESS SEGMENTS 75

			2008					2007
JM RESIDENTIAL STOCKHOLM	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	5,317	1,301	1,035	1,615	1,366	5,217	1,621	1,077	1,256	1,263
Operating profit 1)	920	88	165	375	292	1,236	448	264	287	237
Operating margin (%)	17.3	6.8	15.9	23.2	21.4	23.7	27.6	24.5	22.9	18.8
Average operating capital	2,012	2,012	1,867	1,672	1,461	1,286	1,286	1,204	1,049	937
Return on operating capital (%) 2)	45.7	45.7	68.6	82.5	88.4	96.1	96.1	91.6	99.1	102.0
Operating cash flow	1,090	442	13	410	225	1,289	373	382	46	488
Carrying amount, development properties	2,432	2,432	2,718	2,325	2,531	2,405	2,405	1,656	1,725	1,600
Number of available building rights	12,200	12,200	12,800	12,900	12,500	12,300	12,300	12,100	12,400	12,200
Number of housing starts Number of residential units sold	973 1,061	50 97	23 147	568 425	332 392	1,820 1,907	461 640	414 364	532 521	413 382
1) Of which – property sales	-	-	-	-	-	15	10	-	3	2
– write-downs on properties	– 140	– 140	-	-	-	-	-	-	-	-
			2008					2007
JM RESIDENTIAL SWEDEN	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	3,263	612	683	1,015	953	4,011	1,119	872	1,055	965
Operating profit 1)	197	– 122	61	126	132	685	220	154	168	143
Operating margin (%)	6.0	– 19.9	8.9	12.4	13.9	17.1	19.7	17.7	15.9	14.8
Average operating capital	1,447	1,447	1,328	1,184	1,039	871	871	831	759	696
Return on operating capital (%) 2)	13.6	13.6	40.6	53.4	64.9	78.6	78.6	80.2	83.1	87.2
Operating cash flow	– 203	– 186	100	29	– 146	468	210	108	195	– 45
Carrying amount, development properties Number of available building rights	1,546 11,000	1,546 11,000	1,671 11,900	1,645 11,800	1,606 11,500	1,377 10,700	1,377 10,700	1,415 10,800	1,385 10,600	1,358 10,800
Number of housing starts	597	237	118	131	111	1,515	448	331	481	255
Number of residential units sold	564	137	119	139	169	1,502	330	371	465	336
1) Of which – property sales	– 1	– 1	-	-	-	2	2	-	-	-
– write-downs on properties	– 40	– 40	-	-	-	-	-	-	-	-
			2008					2007
JM INTERNATIONAL	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	2,058	418	435	661	544	2,685	878	509	700	598
Operating profit 1)	– 176	– 243	18	28	21	178	74	17	46	41
Operating margin (%)	– 8.6	– 58.1	4.1	4.2	3.9	6.6	8.4	3.3	6.6	6.9
Average operating capital	1,800	1,800	1,630	1,464	1,313	1,144	1,144	1,098	1,090	1,058
Return on operating capital (%) 2)	– 9.8	– 9.8	8.7	9.6	12.0	15.6	15.6	18.1	20.5	22.4
Operating cash flow Carrying amount, development properties	– 657 1,562	– 102 1,562	– 146 1,670	– 91 1,560	– 318 1,501	– 10 1,389	– 140 1,389	106 1,224	151 1,181	– 127 1,198
Carrying amount, project properties	61	61	58	31	29	30	30	37	29	29
Number of available building rights	7,800	7,800	8,200	8,300	8,500	8,000	8,000	7,400	7,300	7,100
Number of housing starts	259	59	105	34	61	730	138	103	319	170
Number of residential units sold	246	36	41	110	59	471	73	82	135	181
1) Of which write-downs on properties	– 140	– 140	-	-	-	-	-	-	-	-
			2008					2007
JM PROPERTY DEVELOPMENT	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	213	58	53	61	41	91	27	25	18	21
Operating profit 1)	75	42	9	19	5	162	30	35	26	71
Average operating capital	972	972	949	965	983	984	984	999	962	938
Return on operating capital (%) 2)	7.7	7.7	6.6	9.2	9.8	16.5	16.5	14.4	12.9	15.9
Operating cash flow	– 113	– 78	– 54	– 3	22	170	197	35	– 30	– 32
Carrying amount, development properties	80	80	101	110	110	111	111	73	74	74
Carrying amount, project properties	553	553	798	771	780	760	760	585	586	584
1) Of which property sales	74	53	0	18	3	165	27	37	27	74
			2008					2007
JM PRODUKTION	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income	2,008	606	529	459	414	1,296	366	290	318	322
Operating profit 1)	124	44	32	26	22	89	33	23	19	14
Operating margin (%)	6.2	7.3	6.0	5.7	5.3	6.9	9.0	7.9	6.0	4.3
Operating cash flow	162	39	51	39	33	54	36	– 1	– 3	22
			2008					2007
JM OTHER	Full-year	Q 4	Q 3	Q 2	Q 1	Full-year	Q 4	Q 3	Q 2	Q 1
Income (elimination)	– 630	– 145	– 185	– 148	– 152	– 569	– 132	– 130	– 165	– 142

Operating profit (group-wide expenses) – 57 – 20 – 9 – 13 – 15 – 49 – 13 – 12 – 14 – 10

2) Calculated on 12-month rolling profits and average capital.

76 PROPOSED DISPOSITION OF EARNINGS

The Board of Directors and Chief Executive Officer propose that no dividend be paid and that the entire reported annual profit in the Parent Company of SEK 1,428,423,861 with the addition of retained earnings of SEK 151,178,860, for a total of SEK 1,579,602,721, be carried forward.

The number of registered shares as of Dec. 31, 2008 was 83,401,883, including 185,000 that are repurchased shares, which are not entitled to dividend.

The undersigned certify that the consolidated accounts and the annual report have been perpared in accordance with International Financial Reporting Standards (IFRS), as adopted for use in the European Union, and generally accepted accounting principles respectively, and give a true and fair view of the financial positions and results of the Group and the Company, and that the management reports of the Group and the Company give a fair review of the development of the operations, financial positions and results of the Group and the Company and describes substanial risks and uncertainties that the Group companies face.

Stockholm February 25, 2009

Lars Lundquist Chairman of the Board

Elisabet Annell Eva-Britt Gustafsson Bengt Larsson Berthold Lindqvist Board member Board member Board member Board member

Åsa Söderström Jerring Torbjörn Torell Jonatan Sundelin Johan Wegin

Board member Board member Board member appointed Board member appointed by the employees by the employees

Johan Skoglund Board member President and Chief Executive Officer

TO THE ANNUAL MEETING OF THE SHAREHOLDERS OF JM AB, CORPORATE IDENTITY NUMBER 556045-2103

We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of JM for the financial year 2008. The Compay's annual accounts and consolidated financial statements are included in the printed version of this document on pages 41–76. The board of directors and the managing director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. We also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company's financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with the international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group´s financial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.

We recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Stockholm February 25, 2009

Ernst & Young AB

Ingemar Rindstig Jonas Svensson Authorized Public Authorized Public Accountant Accountant

DEFINITIONS KEY FINANCIAL MEASURES

Amounts in SEK million unless stated otherwise.

Dividend yield

Proposed dividend in relation to market price at December 31, 2008.

Proposed dividend	0
Share price	43.00
	0

Total return

The sum of the change in share price during the year, dividend paid and redemption rights in relation to the share price at the beginning of the year.

Change in share price	– 89.5
Dividend paid	5.5
Redemption rights	4.1
Total	– 79.9
Share price, January 1	132.5
	– 60 %

Asset turnover rate

Income for the year divided by average total assets.

	1.22 times
Average total assets	9,985
Income	12,229

Earnings per share (basic)

Profit for the year attributable to shareholders of the Parent Company in relation to average number of shares.

Net profit for the period	818
Average number of shares	85,968,011
	SEK 9.50

Return on equity

Profit for the year as a percentage of average shareholders' equity.

Net profit for the year	818
Average shareholders' equity	3,567
	22.9 %

Return on capital employed

Profit before tax plus financial expenses as a percentage of average capital employed.
Profit before tax plus financial expenses	1,171
Average capital employed	4,929
	23.8 %

Return on equity on total capital

Profit before tax plus financial expenses as a percentage of average total assets.

Profit before tax plus financial expenses	1,171
Average total assets	9,985
	11.7 %

Interest coverage ratio

Profit before tax plus financial expenses in relation to financial expenses.
Profit before tax plus financial expenses	1,171
Financial expenses	119
	9.8 times

Operating margin

Operating result including property sales and impairment losses on properties in relation to revenues.

Operating profit	1,083
Income	12,229
	8.9 %

Equity/assets ratio

Shareholders' equity as a percentage of total assets.
Shareholders' equity	3,241
Total assets	10,055
	32 %

GLOSSARY

Development properties

Mainly refers to land that can be developed for future projects

• Land with residential building rights • Land with commercial building rights
• Developed properties for residential projects or further development to project properties.

A presentation of a selection of JM's larger development properties can be found on pages 93–95.

Revenue

Rental income and recognized revenue according to the percentage of completion method.

Operating capital

Total goodwill, project properties, development properties, participations in tenantowner associations, receivables from property sales, receivables from tenant-owner associations sold, and accounts receivable, revenue less progress billings minus accounts payable, property purchases and progress billings in excess of recognized revenue. Average operating capital is calculated as closing operating capital on five measurement dates (five most recent quarters).

Operating cash flow

Change in operating capital plus profit for the period adjusted for non-cash items.

Project properties

Classified as current assets and comprise large property portfolios for further development and commercial properties.

• Residential (leasehold)

• Properties under development
• Fully developed commercial properties.

A summary of JM's project properties can be found on pages 91–92.

Interest-bearing net liabilities /receivables

Interest-bearing receivables and cash and cash equivalents minus interest bearing liabilities and provisions.

Debt/equity ratio

Interest-bearing net debt in relation to shareholders' equity.

Capital employed

Shareholders' equity plus loans.

Recognized revenue (according to percentage of completion method) Revenue is recognized period by period, as projects are completed and sold.

A more detailed description can be found in the section Accounting and valuation principles on pages 51–53.

CONTENTS	PAGE
CORPORATE GOVERNANCE REPORT	80
BOARD OF DIRECTORS AND AUDITORS	86
EXECUTIVE MANAGEMENT	87
THE JM SHARE	88
NOTICE OF ANNUAL GENERAL MEETING AND FINANCIAL CALENDAR	90

Corporate governance report for the 2008 financial year

BACKGROUND

The revised Swedish Code of Corporate Governance (the Code), which came into force on July 1, 2008, is to be applied by listed companies in Sweden. JM AB (JM) is one of these companies. Code requirements include enclosing a separate report on corporate governance issues with JM's annual report. In this corporate governance report JM must state that the Code is applied and comprehensively describe how the Code was applied during the most recent financial year. The code allows noncompliance with the rules, provided that the reason is clearly presented according to the "comply or explain" principle.

JM's aspiration is to continue working systematically to further strengthen its internal control and governance, while increasing the knowledge of shareholders and other stakeholders about how the Board of Directors and the administration operate in order to ensure that shareholders' demand for return on invested capital is met. Priority areas include high ethical standards, JM's core values, professionalism, transparency and JM's contribution to social development. For more information about JM's contributions to sustainable urban planning, please refer to pages 28–32.

JM has been working on corporate governance issues for several years, resulting in improved control and oversight with respect to investment, sales and production decisions, as well as during the project implementation phase. Internal control and governance are also exercised through the systematic committee work of the Board. The Board undergoes an annual evaluation process to help them develop.

COMPLIANCE WITH THE CODE AT JM

JM complies with the Code without exception.

ANNUAL GENERAL MEETING

The Company publishes notification of the Annual General Meeting (the meeting at which the consolidated accounts and audit report for the Group are presented) no earlier than six weeks and no later than four weeks before the meeting. The Company announces the time and place of the Annual General Meeting in connection with the third quarter report, usually in late October.

The possibility of foreign shareholders following or participating in the Annual General Meeting through simultaneous interpretation or translation of materials presented into other languages has not been considered necessary since to date, such shareholders have been represented by Swedish representatives.

The Annual General Meeting is the decision-making body at which all shareholders are entitled to participate. The Annual General Meeting addresses the company's developments, and decisions are taken in several key issues, such as dividends, discharge from liability for the Board, election of auditors (every fourth year), compensation to the Board of Directors and auditors, as well as election of a new Board up until the next Annual General Meeting.

The 2008 Annual General Meeting was held on April 24. A total of 251 shareholders were present or represented by representatives, representing 50 percent of the total number of shares.

Minutes from the 2008 Annual General Meeting can be found on the Company's website (www.jm.se).

The 2009 Annual General Meeting will be held on April 28.

NOMINATION COMMITTEE

Board Members are nominated by the Nomination Committee prior to election at the Annual General Meeting. This committee consists of representatives for the four largest shareholders in the company, at any time, who wish to participate. The Chairman of the Board is the fifth member and convenes the meeting.

The Nomination Committee's task is mainly to submit proposals for Directors and their remuneration and, when appropriate, to submit proposals for election of auditors.

The Chairman of the Board convened the Nomination Committee for the 2009 Annual General Meeting in September 2008 and it consists of the following:

Anders Algotsson representing AFA Försäkringar KG Lindvall representing Swedbank Robur Funds Lars-Åke Bokenberger representing AMF Pension Martin Jonasson representing Andra AP-fonden and Lars Lundquist, Chairman of the board of JM.

At the time it was appointed, the Nomination Committee represented about 33 percent of the total number of JM shares. Anders Algotsson is Chairman. The Nomination Committee convened four times and in addition corresponded by e-mail. Directors on the Nomination Committee have not received any remuneration from JM.

At the recommendation of the Nomination Committee, the 2008 Annual General Meeting re-elected Ernst & Young AB as its auditing company. Responsible auditors are Ingemar Rindstig and Jonas Svensson.The election covers the period up until the 2012 Annual General Meeting. In addition to JM, Mr. Rindstig provides auditing services for clients such as Besqab, Castellum, Jernhusen, Sagax, Svenska Bostäder, Vasakronan and Veidekke. In addition to JM, Mr. Svensson provides auditing services to clients such as Besqab, Glocalnet, Sagax and Vattenfall. Ingemar Rindstig and Jonas Svensson have no assignments with other companies that affect their independence as auditors for JM. Information about the auditing company's services to JM in addition to auditing is provided in note 5 on page 58.

JM'S BOARD OF DIRECTORS

COMPOSITION

According to the Articles of Association, JM's Board of Directors shall consist of a minimum of three and a maximum of nine directors elected by the Annual General Meeting. The Board's directors are elected for one year at a time. In addition, the employee organizations are legally entitled to appoint two ordinary directors as well as two deputies.

The 2008 Annual General Meeting elected eight directors. The employee organizations have appointed two directors and two deputies.

The composition of the Board of Directors can be seen below, as can participation in committees (A = Audit Committee, C = Compensation Committee, I = Investment Committee) and attendance during 2008. Approved remuneration is reported on page 84. The Board of Directors held fourteen meetings, three of which were per telephone and three per capsulam.

The Audit Committee held four meetings.

The Compensation Committee held four meetings.

The Investment Committee held five meetings.

Function			Attend ance B	Attend ance C
chairman	2005	(chairman) C (chairman) I	13	9
board member	2002	A	14	4
board member	2005	A	14	4
board member	2004	C	14	4
board member	2001	(chairman) A	13	3
board member	2003	-	14	-
	2007	I	14	5
board member	2004	I	14	5
emp.rep.	2004	-	14	-
emp.rep.	2002	-	14	-
emp.rep., dep.	2005	-	111)	-
emp.rep., dep.	2007	-	111)	-
	Åsa Söderström Jerring board member		Elected Committee

1) Employee deputies do not participate in decisions per capsulam.

Further information about the Board's Directors according to article 2.6 in the Code is specified on page 86.

INDEPENDENT

All directors with the exception of Johan Skoglund as President are to be considered independent in relation to the Company and all are independent in relation to the owners.

Employee representatives are not independent of the company.

DUTIES AND RESPONSIBILITIES Duties of the Board of Directors

The Board's duties deal with strategic issues such as JM's business concept, key policies, the market, finance and financial position, risks, human resources and leadership, control and efficiency, as well as decisions concerning production starts of projects, acquisition and sale of development properties and fully developed properties.

The most important governing documents are:

• Articles of Association
• Rules of Procedure for the Board of Directors, Instructions for the Allocation of Duties between the Board and the President, and Instructions for Financial Reporting
• JM's Authorization Regulations
• JM's policies (Quality and Environmental Policy, Employee Policy, Information Policy, Financial Policy and Purchasing Policy)
• JM's Ethical Guidelines.

Newly elected directors are introduced to the company's business concept, market, policies and its systems for internal control and risk management.

The duties of the Chairman of the Board are estimated at approximately 50 working days per year and for external Board members to approximately 20 working days per year, including duties in the committees.

Duties of the Chairman of the Board

The Chairman of JM's Board of Directors has ultimate responsibility for the company complying with the established strategic focus. In this context the Chairman has regular contact with the company's President and serves as discussion partner to the President. The Chairman's duties in general comply with the requirements of the Code.

Secretary to the Board

The company's Chief Legal Advisor is secretary to the Board. The Chief Legal Advisor is not a member of the Board of Directors.

Board of Directors' evaluation of its own performance

The performance of the Board of Directors is evaluated every autumn. The results of the survey and conferences are provided to the Nomination Committee.

The Board's evaluation of the President

The Board of Directors evaluates the President's performance annually.

Important matters during 2008

Among other things, in 2008 the Board decided to acquire development properties in Greater Stockholm (at Telefonplan, on Kungsholmen and in Solna). In Greater Stockholm JM sold a large property portfolio in Älta, Nacka, and started four residential projects. In southern Sweden industrial land was acquired in Lund to develop residential units.

The Board of Directors also held a separate strategy meeting and adopted the strategic plan for the Company. At this meeting JM's policies were also addressed and a competitor analysis was reviewed. Other important matters that the Board addressed in 2008 include the redemption program and the long-term incentive schemes, which were approved by the Annual General Meeting, as well as treatment of the personnel cutbacks carried out during the year. The problems in the financial system during the latter portion of 2008 made it necessary to adapt operations to lower demand for residential units.

The Duties of the Committees

The committees usually meet in conjunction with Board meetings or when necessary. Minutes are kept and shared with the Board of Directors and the auditors. No committees have been delegated the right of decision except for the

• Compensation Committee, which approves salaries and other terms and conditions for the Executive Management excluding the President, and the
• Audit Committee, which in consultation with the external auditors formulates the plan for the external auditors' work and determines how JM's central Internal Audit function should work. The Audit Committee approves remunerations and compensations to the external auditors for special assignments and initiates more in-depth initiatives in selected areas.

With the exception of the President, all Directors elected at the Annual General Meeting also sit on one or more committees. The President participates at committee meetings after notification from the chairman of the respective committee.

The Chairman of the Board chairs the Compensation Committee and the Investment Committee. The Chairman of the Audit Committee is Director Berthold Lindqvist.

The Chief Financial Officer reports at Audit Committee meetings.

The Audit Committee

The Audit Committee was established in 2003 and currently has three directors: Berthold Lindqvist (chair), Elisabet Annell and Eva-Britt Gustafsson. The committee met four times during the calendar year.

During the year the Audit Committee mainly focused on:

• Approval of remuneration and compensation to the auditors for special assignments
• Review of the short-term and long-term audit plan
• Quality assessment of internal control systems and control procedures
• Progress report and analysis of areas or projects of special interest
• Review and analysis of financial statements and interim reports
• Report and present to the Board of Directors observations noted during review sessions with auditors and management
• Initiate more intense initiatives in selected areas
• Preparation of the Corporate Governance Report and the Board of Directors' Report on Internal Control and Risk Management over Financial Reporting.

Compensation Committee

The Compensation Committee was established in 2003 and currently has two directors: Lars Lundquist (chair) and Bengt Larsson. The committee held four meetings during the year.

The duties of the Compensation Committee during the year have been to:

• Prepare recommendations for salary, pension benefits and other terms and conditions for the President of the com-pany
• Prepare recommendations relating to general principles for remuneration to all other employees, especially in terms of variable compensation
• Prepare recommendation for possible incentive schemes
• Approve salary and other terms and conditions for the Executive Management (excluding the President), based on Boardapproved general principles.

Investment Committee

The Investment Committee was established in 2004 and currently has three members: Lars Lundquist (chair), Torbjörn Torell and Åsa Söderström Jerring. The Committee met five times during the year.

The Investment Committee's duties during the year have been, within the framework of JM's order of delegation, to:

• Evaluate the strategy for scope and focus pertaining to Development Properties and Project properties
• Prepare recommendations to purchase or sell Development Properties and Project Properties or shares and participation rights in companies as owner of such properties
• Prepare recommendations relating to investments in existing Project Properties
• Prepare recommendations relating to production start of housing projects
• Prepare recommendations relating to external contractors.

FINANCIAL REPORTING

The President shall ensure that the Board receives progress reports on JM's operations, including JM's financial performance, position and liquidity as well as information about the status of larger projects and other significant events. These reports shall be of such nature that the Board can make a well informed evaluation. The financial reporting that the Board receives can be seen in the "Monitoring" section below.

THE BOARD OF DIRECTORS' REPORT ON INTERNAL CONTROL AND RISK MANAGEMENT OVER FINANCIAL REPORTING Governance Structure

The Board has ultimate responsibility for establishing an effective internal control and risk management system. The responsibility for maintaining an effective control environment and regular work with internal control and risk management is delegated to the President. Risk management is an integrated part of decisionmaking at all levels within JM and is incorporated as a natural element in JM's business processes. For a detailed description of JM's risk management procedures please refer to page 37.

The Governance Structure can be seen in the diagram:

In recent years the Board of Directors has placed special emphasis on building effective control structures.

The quality of JM's processes and systems for ensuring good internal control is based on the control environment, which includes the Board's adopted rules of procedure and instructions for financial reporting. Establishing the Audit Committee the Board has facilitated closer contact with both internal and external auditors, enabling the Board and its committees to learn about the company's financial position in various ways. Consequently, the external and internal auditors meet the Audit Committee four to five times per year. In addition the external auditors meet the entire Board twice a year.

During the year a project was launched to analyze the processes and systems in the foreign subsidiaries. The objective is to further improve processes and procedures throughout the Group.

The main task of JM's central Internal Audit function is to examine the suitability of the operation and its efficiency by checking compliance with the business-critical requirements of JM's Operations System. JM's Operations System is a comprehensive process-oriented work structure with the purpose of ensuring the efficiency of JM's business processes. The Internal Audit has the special task of examining the financial risks associated with larger projects. The Board ensures that JM has solid project and financial management through regular communication with internal and external auditors.

Control Environment

JM's core values and corporate culture comprise the basis of internal controls with respect to financial reporting. Control environment refers to both the infrastructure built for internal control and governance, as well as JM's core values.The control environment consists of the organization, channels for decisions, authorities and responsibilities documented and communicated in normative documents such as internal policies, guidelines, manuals and codes; for example, the distribution of work between the Board on the one hand and the President on the other hand, and the other bodies that the Board establishes, instructions for approval powers, as well as accounting and reporting instructions.

Risk Assessment

The Company applies a method or process for risk assessment and risk management to ensure that those risks to which the company is exposed are managed within the established frames and that the risks are handled within the framework of existing processes and systems. JM's Operations System, which describes JM's business from a process perspective with established business-critical requirements, serves as an important element of risk management.

Control activities

The risks identified with respect to financial reporting are managed via the company's control activities, which are documented in process and procedure descriptions. The purpose of control activities is to continually improve while preventing, detecting and correcting errors and deviations.

Examples of control activities in which risk assessments are managed:

• The Operations System that documents the operation's proces ses and established business-critical demands
• Project reviews before initiating acquisitions, pre-construction, production and sales starts
• Business committee meetings and Group Executive Management meetings preparing for investments in properties and initiation of residential production projects. Business unit managers, staff managers and regional managers/subsidiary managers participate at these meetings (monthly)
• Forecast reviews with business unit managers (quarterly)
• Close monitoring of large projects at which the President, Chief Financial Officer, business unit manager and regional manager/subsidiary manager participate (quarterly)
• Group management meetings in larger projects (quarterly)
• Board meetings at subsidiaries.

Information and communication

The Company has implemented information and communication channels to encourage completeness and accuracy in financial reporting; for example, by notifying concerned personnel about normative documents such as internal policies, guidelines, manuals and codes pertaining to financial reporting and making such documents available to them.

JM's principal normative documents are the Rules of Procedure for the Board of Directors, Instructions for the Allocation

The decision process can be seen below:

of Duties between the Board and the President, Instructions for Financial Reporting and JM's Authorization Regulations.

Other normative documents such as policies, guidelines, instructions and manuals for financial reporting are available on JM's Intranet as well as in the Operations System. The most important documents are:

• Schedule and instructions for forecasts and financial statements
• Financial statement and forecast processes
• Instructions on project management
• Instructions for purchases and sales
• Financial policy
• Controlling within JM
• Accounting principles
• Procedure descriptions.

Monitoring

The Board of Directors receives financial reports in conjunction with the interim reports. In addition to the outcome and forecast reports the Audit Committee receives financial audit reports for larger projects. In connection with the delegation rules the Board of Directors/Investment Committee receive regular acquisition and project estimates, summaries of planned and current projects, investments, and purchases/sales of properties.

In addition, the Board of Directors' various committees serve an important function in follow-up of the Board's activities.

The Board follows up and reviews internal control to ensure that it works satisfactorily, in part through JM's external auditors, in part through the company's central Internal Audit function, which both operate based on a plan approved by the Board's Audit Committee. The results of the audits and proposals for any measures that need to be taken are regularly reported to the Audit Committee.

REMUNERATION TO THE BOARD OF DIRECTORS

After a recommendation from the Nomination Committee the 2008 Annual General Meeting resolved:

• that the Chairman of the Board should be paid a fee of SEK 590,000 and regular directors who are not employed by the company will be paid SEK 260,000
• that the fee for work in the Audit Committee should be SEK 110,000 to the chair and SEK 80,000 to each of the two Directors, and SEK 55,000 to each of the five Directors, including the chairs, of the Compensation and Investment Committees.

Recommendations for compensation guidelines for JM's senior executives will be presented as required by law at the 2009 Annual General Meeting for resolution. The Board of Directors will decide on salary, pension benefits and other remuneration for the President, and the Compensation Committee decides on such matters for the Executive Management excluding the President. Information about compensation guidelines for JM's senior executives can be found in the Board of Directors' Report on page 44. Information about compensation to the President and Executive Management can be found in note 3, pages 56– 58 of Notes to the financial statements.

About 650 of JM's managers and executives, including the President and Executive Management participate in a performancebased salary system. The total salary comprises a basic and a variable component with a maximum result for the variable component that, depending on position, varies between one and seven monthly salaries. In addition to financial result, which carries the greatest weight, the variable salary component is based on individual target fulfillment and the Customer Satisfaction Index. The principle is that the basic salary combined with a normal result for the variable component should result in a market salary.

2008 PERFORMANCE SHARE PROGRAM AND 2008 SHARE MATCH PROGRAM

The 2008 Annual General Meeting resolved to establish a 2008 Performance Share Program and a 2008 Share Match Program ("2008 Stock Program"), for up to 50 senior executives in the JM Group. One of the purposes of the Program is to strengthen JM's ability to retain and recruit the best employees in order to achieve the highest possible return for shareholders.

2008 PERFORMANCE SHARE PROGRAM—SPECIAL TERMS AND CONDITIONS

Participants in the Performance share program receive, free of charge and with no requirement for investment in contribution shares, a certain number of rights ("Right II"). Each Right II entitles the holder to acquire at a future point in time one ordinary share in JM ("Performance Share") at a redemption price of SEK 10, provided that certain performance requirements are met. In order to exercise Right II to acquire a Performance Share the participant must be employed by the JM Group during an initial three-year vesting period and certain performance requirements, linked to JM's growth in earnings per share during financial years 2008– 2010, must be met. Rights normally fall due upon termination of employment within the JM Group.

2008 SHARE MATCH PROGRAM—SPECIAL TERMS AND CONDITIONS

Participation in the 2008 Share Match Program required investment in JM ordinary share during May 2008 ("Contribution share"). For every two contribution shares acquired under the 2008 Share Match Program, the participant in the program is granted one right ("Right I"), free of charge, entitling the holder at a future point in time to acquire one ordinary share in JM ("Share") at a redemption price of SEK 10.

The size of the participant's possible investment is based on the participant's variable salary for 2007. In order to exercise Right I to acquire Shares the participant must be employed by the JM Group during an initial three-year vesting period and during this period the participant must retain all contribution shares acquired within the 2008 Share Match Program. The term of the 2008 Share Match Program is seven years, including the initial three-year vesting period. Rights normally fall due upon termination of employment within the JM Group.

ESTIMATED COSTS FOR THE 2008 STOCK PROGRAM

After the end of the registration period the 2008 Stock Programs cover a maximum of about 105,000 ordinary shares, equivalent to dilution of about 0.13 percent of shares and votes in the company. The cost of the 2008 Share Program, which will be charged against the earnings of the three qualifying years of service, will be about SEK 8m including social security costs. Within the framework of the 2008 Stock Program, JM repurchased shares for transfer to the participants in the programs and to cover social security costs. At the end of May 2008 JM AB acquired 150,000 of its own shares on the OMX Nordic Exchange Stockholm for a total of SEK 15.5m.

CORPORATE GOVERNANCE REPORT 85

2008 CONVERTIBLE PROGRAM AND 2008 WARRANT PROGRAM

The Annual General Meeting 2008 resolved that JM should raise a debenture loan with a nominal value of SEK 110m by issuing a maximum of 540,000 convertible debentures, aimed at all employees in Sweden and issue a maximum of 85,000 warrants aimed at all employees outside Sweden. The purpose of the 2008 Convertible Program and the 2008 Warrant Program is to motivate employees through a personal ownership commitment to make a positive contribution to improve the business, which promotes successful growth at JM for the long-term.

Upon expiry of the subscription period the loan amounts to about SEK 57m through the issue of about 424,000 convertible debentures and the number of warrants issued are approximately 73,000. In accordance with IAS 32 the liability and equity components of the convertible debenture loan are reported separately, which means that the debenture loan is reported in the balance sheet as a liability initially with the nominal amount excluding the equity component. Most of the convertible debenture loan was settled against cash in late June 2008.

Each convertible debenture and warrant may be converted into one share, at a price of SEK134. Conversion or exercise may take place from June 1, 2010, through May 18, 2012, with the exclusion of the period January 1 until the record date for dividends each year. Through conversion of convertibles and subscription for warrants, JM's share capital could increase by a maximum of SEK 498,000, through the issue of a maximum of 498,000 ordinary shares, each with a quota value of SEK 1. This corresponds with dilution of about 0.6 percent of shares and votes in the company. The convertible debenture loan falls due for payment on June 10, 2012, insofar as conversion has not already been undertaken.

MANAGEMENT AND CORPORATE STRUCTURE

ORDER OF DELEGATION—PRESIDENT'S RIGHT OF DECISION The Board has delegated to the President the right of decision for:

• purchases and sales of development and project properties up to SEK 100m
• investments in existing project property up to SEK 400m for implementation of housing projects, or SEK 200m for implementation of office projects
• production start of housing project, up to a maximum project cost of SEK 400m excluding the purchase price for the property
• signing of external contracting agreements up to SEK 400m
• raising of new loans that are not linked to acquisition of a property, up to a total of SEK 400m per year for loans with a shorter maturity than one year, up to a total of SEK 250m per year for loans with maturity longer than one year.

In other cases the Board decides. These amounts are chosen to meet the Board's needs to exercise control and management's need of freedom of action. The President has the right to further delegate some of the above decision rights.

Matters are prepared by two Business Committees consisting of business unit and regional managers from the entire Group, as well as by the Executive Management.

The Operational organization can be seen in the above diagram.

EXECUTIVE MANAGEMENT

JM's business is operationally divided into six business units. Each business unit manager reports directly to the President. Executive Management comprises the President, all heads of business units and staff heads, a total of nine people, and meets at least once a month. Management responsibility includes always working to ensure compliance with guidelines issued by the Board and the President. External financial reporting takes place in five business segments.

GOVERNANCE AND REPORT STRUCTURE

At JM, a large number of projects are in production at any given time. It is not unusual for a project to involve more than 100 people with an estimated order value of more than SEK 100m. Every project is run by a project manager who is responsible for the project's revenues and expenses. The project manager reports to the regional manager who is directly subordinate to the business unit manager. All these people have profit responsibility. The business unit manager is responsible for deciding the revenue level in the projects.

Decisions to begin work on a project are made by business unit management or Executive Management; for major projects such decisions are made by the Board. Follow-up of sold and reserved residential units takes place on a weekly basis, with reporting to regional manager, business unit manager and the President. Complete analyses and reconciliation of each project's revenues and expenses are performed every quarter.

More intense monitoring routines have been introduced for large projects. The business unit manager and the regional manager/head of subsidiary present quarterly reports to the President and CFO. Assessment data include the financial history of the project, future anticipated revenues and expenses and the current sales and reservations situation. The largest projects have special steering groups and are audited by JM's Internal Audit function and presented in the Audit Committee.

AUDITORS' REPORT

This report has not been examined by the company's auditors.

Stockholm February 25, 2009 Board of Directors

From left: Peter Skogert, Johan Skoglund, Stefan Brodén, Eva-Britt Gustafsson, Jonatan Sundelin, Lars Lundquist, Berthold Lindqvist, Åsa Söderström Jerring, Johan Wegin, Torbjörn Torell, Bengt Larsson and Elisabet Annell.

Lars Lundquist

Chairman of the Board, chairman of the Compensation committee and the Investment committee

Elected to the Board: 2005 Shares in JM: 85,000

Age: 61 years

Education: MSc, Stockholm School of Economics; MBA, University of Wisconsin. Work experience: 32 years at various banks, brokerage firms and insurance companies.

Other significant appointments: Chairman of the Board of Intrum Justitia AB and Försäkrings AB ERIKA and board member of TradeDoubler AB, Sixth Swedish National Pension Fund and board member and treasurer of Hjärt-Lungfonden.

Elisabet Annell

Board member and member of Audit committee

Elected to the Board: 2002

Shares in JM: 2,070

Age: 63 years

Education: MA, Stockholm University. Work experience: 14 years at KPMG as an authorized public accountant and corporate finance consultant; 11 years as VP and CEO of three different service companies: MGruppen, Tönnerviksgruppen, and Sifo Group; 6 years as CEO and strategic consultant at SMG and 5 years as President and CEO of Univero Group.

Other significant appointments: Board member of Atria Scandinavia AB, Catella AB, Lantmännen ek. för., Livförsäkrings AB Skandia, TradeDoubler AB and Upplands Motor AB.

Eva-Britt Gustafsson

Board member and member of Audit committee

Elected to the Board: 2005 Shares in JM: 1,000

Age: 58 years

Education: MSc, Stockholm School of Economics.

Work experience: 18 years at Nordbanken (Nordea), including as bank manager and 2 years as VP of Securum Finans AB. During the past 12 years, CEO of Venantius AB.

Other significant appointments: CEO of Apoteket Omstrukturering AB. Chairman of the board of Akademiska Hus AB and board member of Euler-Hermes Kreditförsäkring Norden AB.

Bengt Larsson

Board member and member of the Compensation committee

Elected to the Board: 2004 Shares in JM: 5,000

Age: 63 years

Education: Upper secondary school Work experience: 20 years in various positions within the IKEA Group, including head of operations in Sweden, Northern Europe and Europe, and a member of Executive

Berthold Lindqvist

Management during the 1990s.

Board member and chairman of the Audit committee

Elected to the Board: 2001 Shares in JM: 9,931

Age: 70 years

Education: Honorary Doctor of Medicine, engineer.

Work experience: VP at Sonesson AB; 14 years as President and CEO of Gambro AB. Other significant appointments: Board member of Cardo AB and Securitas AB.

Johan Skoglund

President and CEO since Nov. 1, 2002

Elected to the Board: 2003 Shares in JM: 23,400

Convertibles: SEK 2,874,356

Age: 46 years

Education: M. Sc.Eng, Royal Institute of Technology, Stockholm and Master of Science Program at Stockholm School of Economics.

Work experience: 21 years at JM AB in various positions such as site engineer, project manager, regional manager and business unit manager.

Other significant appointments: Board member of AB Bostadsgaranti, Försäkrings AB Bostadsgaranti, Swedish construction Federation and Mentor Sverige.

Åsa Söderström Jerring Board member and member of the Investment committee

Elected to the Board: 2007

Shares in JM: 5,000 Age: 52 years

Education: MSc., Stockholm University.

Work experience: 25 years experience from the building and real estate industry in various positions such as Information Manager NCC Bygg, President Ballast Väst and President SWECO Theorells.

Other significant appointments: Board member of Geveko AB, Rejlers AB, ELU Konsult AB, and Arkitekterna Krook & Tjäder AB. Chairperson of the Construction Industry's Ethics Council, FIA (Förnyelse i anläggningssektorn) and CERBOF (Centrum för energieffektivt byggande och förvaltning).

Torbjörn Torell

Board member and member of the Investment committee Elected to the Board: 2004

Shares in JM: 5,000 Age: 53 years

Education: M.Sc.Eng, Royal Institute of Technology, Stockholm and Management program at Stockholm School of Economics.

Work experience: 6 years as President, CEO and Board member of Scandiaconsult AB (Publ.), 3 years as CEO of Åke Larson Byggare AB, 13 years in Skanska Group, in various managerial positions. Chairman of the board of Arsenalen AB and Point Gruppen AB. Board member of Carl Bro AS.

Other significant appointments: For the past 4 years, President and CEO of Bravida AB. Board member of Foundation Livslust.

EMPLOYEE REPRESENTATIVES

Jonatan Sundelin Born 1970. Construction worker Member of the board since 2004. Shares in JM: 0 Convertibles: 0

Johan Wegin

Born 1965. Construction engineer Member of the board since 2002. Shares in JM: 0 Convertibles: SEK 208,236

Peter Skogert

Born 1973. Construction worker Deputy member of the board since 2005. Shares in JM: 0 Convertibles: SEK 88,908

Stefan Brodén

Born 1952. Network engineer Deputy member of the board since 2007. Shares in JM: 537 Convertibles: SEK 29,692

SECRETARY OF THE BOARD

Urban Lilja

Born 1952. Chief Legal Advisor, JM AB. Secretary to the board since 1996 Shares in JM: 13,350 Convertibles: SEK 2,282,196

AUDITORS

Ernst & Young AB

Ingemar Rindstig Authorized public accountant Jonas Svensson Authorized public accountant Ernst & Young AB were re-elected auditor of JM AB at the Annual General Meeting in April 2008.

Shareholdings pertain to personal holdings or a related physical or legal person's holdings of JM AB shares and other financial instruments, as at February 28, 2009.

From left: Thor Olaf Askjer, Anette Frumerie, Urban Lilja, Zdravko Markovski, Johan Skoglund, Claes Magnus Åkesson, Sören Bergström, Helene Hasselskog and Lennart Henriz.

EXECUTIVE MANAGEMENT *

Johan Skoglund CEO and President JM employee since: 1986 Member of Executive Management: 2000 Shares in JM: 23,400

Convertibles: SEK 2,874,356

Age: 46 years. M. Sc.Eng, Royal Institute of Technology, Stockholm 1986, and Master of Science Program, Stockholm School of Economics, 1998.

Former positions at JM: 21 years at JM AB in various positions such as site engineer, project manager, regional manager and business unit manager. President and CEO since Nov. 1, 2002.

Board member of AB Bostadsgaranti, För säkrings AB Bostadsgaranti, Swedish construction Federation and Mentor Sverige.

Thor Olaf Askjer

Head of JM Residential Norway business unit JM employee since: 1999 Member of Executive Management: 2004 Shares in JM: 1,875 Convertibles: SEK 803,196 Age: 53 years. Degree in civil engineering, 1977. President Prosjektfinans 97–03 and

President JM Byggholt AS 03–.

Sören Bergström

Head of JM Residential Sweden business unit and Director of Purchasing JM employee since: 1988 Member of Executive Management: 2001 Shares in JM: 409 Convertibles: SEK 1,799,056 Age: 53 years. M. Sc.Eng, Royal Institute of Technology. Master of Science Program me, Stockholm School of Economics 1996. Executive Management Program, Stockholm School of Economics 2001. Former positions at JM: project manager, President of three different subsidiaries and regional manager. Head of JM Production business unit 02–06.

Board member of JM Danmark A/S, JM Construction S.A., JM Suomi Oy, Seniorgården AB and AB Borätt.

Anette Frumerie

Head of JM Residential Denmark, Finland, Belgium business unit, JM Property Development business unit and JM Production business unit JM employee since: 1993

Member of Executive Management: 2008 Shares in JM: 0

Convertibles: SEK 1,521,464

Age: 40 years. M.Sc.Eng, Royal Institute of Technology, Stockholm 1992, and Master of Science Program, Stockholm School of Economics, 2001.

Former positions at JM: 15 years at JM AB in various positions as supervisor, site engineer, project manager and regional manager.

Chairman of the board of JM Entreprenad AB. Board member of AB Borätt, Seniorgården AB, JM Inredning i Stockholm AB and JM Stombyggnad AB.

Helene Hasselskog

Director Human Resources JM employee since: 2006 Member of Executive Management: 2006 Shares in JM: 245 Convertibles: SEK 2,282,196 Age: 40 years. BA, Human Resource Development and Labor Relations, Stockholm University 1994. Human Resources Manager, Posten Brev 97–98, Human Resources Manager, Observer Sverige AB 98–02, Director of Human Resources, Observer AB 02–05.

Lennart Henriz

Director Operations Development (Quality and Environment/IT) JM employee since: 1978 Member of Executive Management: 1999 Shares in JM: 23,359, including 12,500 in endowment insurance Convertibles: SEK 2,282,196 Age: 56 years. M. Sc.Eng, Royal Institute of Technology 1978. Former positions at JM: VP and regional manager AB Projektgaranti, Quality and Environment Manager. Operations Development 00–.

Urban Lilja

Chief Legal Advisor and Secretary to the Board JM employee since: 1996 Member of Executive Management: 1996 Shares in JM: 13,350 Convertibles: SEK 2,282,196 Age: 56 years. LL.B., Lund University 1978. Articled clerk Borås district court, lawyer Friman & Carlander Advokatbyrå, company lawyer Celsius Industrier AB and Akzo Nobel AB. Board member of JM Byggholt AS and

JM Entreprenad AB.

Zdravko Markovski

Head of JM Residential Stockholm business unit and Marketing Communications and Business Development JM employee since: 1987 Member of Executive Management: 2002 Shares in JM: 8,294 Convertibles: SEK 2,282,196 Age: 44 years. M. Sc.Eng, Royal Institute of Technology 1987. Former positions at JM: Project manager, regional manager and Head of JM Residential business unit. Head of JM Residential Stockholm 03–. Chairman of the Board of AB Borätt, Seniorgården AB and JM Suomi OY. Bord member of JM Entreprenad AB, JM Inredning i Stockholm AB and Stombyggnad AB.

Claes Magnus Åkesson

Chief Financial Officer JM employee since: 1998 Member of Executive Management: 1998 Shares in JM: 50,000, including 48,000 in endowment insurance Convertibles: SEK 2,282,196 Age: 49 years. MSc, Stockholm School of Economics, 1984. Ericsson Group 87–98: senior controller Asia 94–96, head of finance and treasury Malaysia 96–97 and regional controller Asia 97–98. Board member of JM Byggholt AS and JM Construction S.A.

OTHER SENIOR EXECUTIVES

Jonas Håkansson, South Region

Robert Jaaniste, Stockholm City Region Per Johansson, Head of marketing Residential Stockholm

Mats Karlsson, West Region

Residential Stockholm

Denmark

Sofia Ljungdahl, Stockholm North Region Mikael Matts, East Region

Per-Anders Olsson, Malmö Region

Pär Vännerström, Stockholm South Region Anders Wimmerstedt, Production

Lars-Olof Höglund, Property Management Fredric Kastevik, JM Entreprenad AB Birgitta Seeman, Seniorgården AB and AB Borätt Jonny Änges, JM Stombyggnad AB och JM Inredning i Stockholm AB

Marko Heino, JM Suomi OY, Finland Christopher Lee, JM Construction S.A., Belgium Anders Wahrer, JM Danmark A/S,

* Karin Ljudén, Director Corporate Communications, and Anders Wahrer, Head of JM Residential Öresund business unit, were members of JM's Executive Management in 2008.

Shareholdings as at February 28, 2009.

Weak year for the JM Share

SHARE CAPITAL

JM shares are listed on the Nordic Stock Exchange, Large Cap segment. Share capital amounts to SEK 83.4m, represented by 83.4 million shares, each with a par value of SEK 1 and equal voting rights. Each trading block consists of 200 shares.

SHAREHOLDERS' OBJECTIVE

JM's shareholders will receive a higher total return, total of dividend and increased value, than shareholders in companies with a similar risk profile and business activities.

SHARE PRICE TREND AND RETURN

JM's shares are included in the OMX Stockholm Stock Exchange "SX4040 Real Estate" index. In 2008 JM's share price fell 68 percent, compared with a decrease of 29 percent for the SX4040, and a decrease of 46 percent for the SX201030, another relevant comparative index for JM. The general index on the OMX Stockholm Stock Exchange, OMX Stockholm_PI, fell 42 percent in 2008.

The highest listed price for the JM Share during the year was SEK 152 on April 4 and the lowest was SEK 26.30 on December 2. Dividend yield (proposed dividend in relation to the market price at year-end) was 0 percent (4.2). Total return in 2008 was – 60 percent (–16).

Total return

%	2008	Average per year 2004–2008
JM	– 60	39
OMX Stockholm Stock Exchange	– 39	9

Total return JM, 2004–2008	%	Index
2008	– 60	230
2007	– 16	576
2006	94	685
2005	91	353
2004	85	185
2004-01-01		100
Average, 5 years	39

TRADING AND MARKET CAPITALIZATION

JM shares were traded for a value of SEK 12.0 billion (30.8) in 2008. Average daily trading was about SEK 47m (123). The turnover rate (the liquidity of the share) was 167 percent (186) during the year compared with an average for the entire stock exchange of 152 percent (130). The company's market capitalization amounted to SEK 3.6 billion (11.8) at year-end.

OWNERSHIP STRUCTURE

The number of shareholders as at December 31, 2008 was 12,659 (11,361). The ten largest Swedish shareholders accounted for 45.0 percent (43.2) of capital and foreign shareholders for 27.3 percent (33.5).

DIVIDEND POLICY

Over time, the dividend should reflect the earnings trend in total operating activities. The average dividend over a business cycle should correspond to 50 percent of consolidated profit after tax. Capital gains from property sales are a natural part of JM's project development operations, and are therefore included in the calculation of dividends. Despite a strong balance sheet and good earning capacity in the long run, the Board will propose a dividend of SEK 0 per share (5.50). The supply of liquidity from the banking system for startup of new projects must normalize before it can be considered fundamentally sound to strip liquidity from the company.

Transfer to shareholders, SEKm

	Dividend	Redemption	Total
2004	140		140
2005	196	966	1,162
2006	247	1,002	1,249
2007	415	1,013	1,428
2008	489	992	1,481
Total	1,487	3,973	5,460

Shareholders as at December 31, 2008

Shareholder Percent of shares
AMF Pensionsförsäkrings AB and AMF funds	9.6
AFA Försäkringar	9.5
Swedbank Robur funds	8.9
Andra AP fonden	5.5
Fjärde AP-fonden	3.2
SEB Fonder and Gamla Livförsäkrings AB SEB Trygg Liv	2.1
Skandia fonder and Livförsäkrings AB Skandia	1.9
Folksam funds, Folksam livförsäkring and KPA pensionsförsäkring AB	1.8
Handelsbanken funds, Handelsbanken livförsäkring and SPP Livförsäkrings AB	1.3
Länsförsäkringar – funds	1.2
Danske Capital Sverige funds	1.2
Cicero funds	1.0
Foreign shareholders	27.3
Other shareholders	25.5
Total	100.0

Number of shareholders as at Dec. 31, 2008: 12,659 Number of shares as at Dec. 31, 2008: 83,401,883

SHARE DATA
SEK per share	2008	2007	2006	2005	2004
Share price as at Dec. 31	43	132.5	166	88	48
Highest/lowest price during the year	152/26.30	264/107.25	168.5/87.5	90/46	48.5/25.5
Dividend yield as at Dec. 31 (%)	0	4.2	2.7	2.8	3.7
Market capitalization as at Dec. 31 (SEKm)	3,578	11,777	15,320	8,686	5,375
Earnings per share, basic and diluted	9.50	18.30	16.40	9.30	4.20
Development properties
Market value	88	91	77	46	36
Carrying amount	68	59	47	30	26
Project properties
Market value	8	12	12	15	23
Carrying amount	7	9	9	12	20
Shareholders' equity (reported)	39	44	39	34	31
Dividend	0 1)	5.50	4.50	2.50	1.80
Dividend in % of earnings per share	0	30	27	27	41
P/E ratio as at Dec. 31	5	7	10	10	11
Number of shares as at Dec. 31	83,216,883 2)	88,879,308 3)	92,289,764	98,705,520	112,261,628
Average number of shares, before dilution	85,968,011	91,076,274	95,453,698	105,390,727	112,261,628
Average number of shares, after dilution	85,991,380	91,090,084	95,453,698	105,390,727	112,261,628

1) Proposed by the Board.

2) Excluding 185,000 repurchased shares.

3) Excluding 35,000 repurchased shares.

OWNERSHIP STRUCTURE AS AT DEC. 31, 2008

Size of holding	Number of shareholders	Percent of all shareholders	Total number of shares owned	Percent of share capital
1–500	7,911	62.5	1,518,659	1.8
501–1,000	2,172	17.2	1,832,121	2.2
1,001–5,000	1,900	15.0	4,337,791	5.2
5,001–20,000	393	3.1	3,855,901	4.6
20,001–100,000	167	1.3	7,623,055	9.2
100,001–	116	0.9	64,234,356	77.0
Total	12,659	100.0	83,401,883	100.0

CHANGES IN SHARE CAPITAL 2004–2008

Year	Share split	Redemption of shares, SEKm	Number of shares	Par value/ share	Share capital SEKm
2004			28,065,407	SEK 4	112.2
2005		– 13.5	24,676,380	SEK 4	98.7
2006		– 6.4	23,072,441	SEK 4	92.3
2006	4:1		92,289,764	SEK 1	92.3
2007		– 3.4	88,914,308	SEK 1	88.9
2008		– 5.5	83,401,883	SEK 1	83.4

SHARE PRICE TREND

Welcome to JM's Annual General Meeting

Shareholders in JM AB are hereby invited to attend the Annual General Meeting to be held at 4 p.m. on Tuesday, April 28, 2009, at JM's head office, Telegrafgatan 4 in Solna, Sweden.

NOTIFICATION

Shareholders who wish to participate at the meeting must be entered in the register of shareholders maintained by Euroclear Sweden AB (previously VPC AB) by Wednesday, April 22, 2009, and must have informed the Company of their intention to participate by 4 p.m. on Wednesday, April 22, 2009, using one of the following channels:

Mail:	JM AB, SE-169 82 Stockholm
Telephone:	+46 (0) 8-782 87 00
Fax:	+46 (0) 8-782 86 12
E-mail:	monica.charron@jm.se
JM AB's website:	www.jm.se

In order to be entitled to participate at the Meeting, shareholders whose shares are registered in the name of a nominee must request that their shares be temporarily registered in their own name by Wednesday, April 22, 2009.

Admission cards to the Annual General Meeting will be sent out.

DIVIDEND

The board of Directors proposes that no dividend be paid for financial year 2008.

FINANCIAL CALENDAR

April 28, 2009	Interim report January – March 2009
	Annual General Meeting 2009
August 24, 2009	Interim report January–June
October 26, 2009	Interim report January–September
	February 11, 2010 Year-end report 2009
April 28, 2010	Interim report January – March 2010
	Annual General Meeting 2010

The reports are available in Swedish and English and may be ordered from JM AB, Finance and Treasury, Tel. +46 (0)8-782 87 00, Fax +46 (0) 8-782 86 10, or via www.jm.se.

Project properties and a selection of development properties

The following conditions apply to the schedule of properties: The values in the column for "rental income, by category" are approximations because some leases include several types of space.

Development properties were chosen based on the size of the projects and the time aspect — they have been or will be started in the next few years.

PROJECT PROPERTIES

Rental space, m2 (including garage)	Residential properties (leasehold)	Properties under development	Fully developed commercial properties
Greater Stockholm	7,709	66,074	427
Rest of Sweden	0	0	0
International	0	0	5,711
Total	7,709	66,074	6,138

RESIDENTIAL PROPERTIES (LEASEHOLD)

			Total			Rental income	Rental income
No.	Property	Age	rentable space	Rentable space, by category		2008	by category	Planning process
	Municipality	Construction year		Hotel	Housing		Hotel/Offices	Planning phase
	Address	Renovation year		Office	Other		Retail	Development period
	Description			Retail	Garage		Housing
							Other/Garage
			m2	m2	m2	SEKm	%
1	Litografin 3	1946	2,123	0	1,705	2.2	6
	Stockholm			93	325		0
	Grafikvägen 15, 17			0	0		85
	Residential						9
2	Skissen 1	1946	1,467	0	1,401	1.4	0
	Stockholm			0	20		2
	Grafikvägen 21–25			46	0		97
	Residential						1
3	Träsnittet 1	1946	2,752	0	2,371	2.9	14
	Stockholm			290	91		0
	Grafikvägen 28–32			0	0		84
	Residential						2
4	Kortvingen 1	1939	863	0	600	0.9	10
	Stockholm			121	83		5
	Nathorstvägen 1–3			59	0		85
	Residential						0
5	Kortvingen 2	1938	504	0	504	0.6	0
	Hammarbyhöjden			0	0		0
	Nathorstvägen 5–7			0	0		98
	Residential						2

PROPERTIES UNDER DEVELOPMENT

			Total			Rental income	Rental income
No.	Property	Age	rentable space		Rentable space, by category		by category	Development
	Municipality	Construction year		Hotel	Housing		Hotel/Offices	Description
	Address	Renovation year		Office	Other		Retail	Major tenants
	Description			Retail	Garage		Housing
							Other/Garage
			m2	m2	m2	SEKm	%
6	Kallhäll 1:22	1907	16,364	0	0	7.3	33	Development of offices
	Järfälla			2,194	13,440		0	and industry
	Fabriksvägen			0	730		0	Haglöfs and others
	Light industry						67
7	Dalénum	1912–1960	41,634	0	0	29.0	62	Development of offices
	Lidingö			25,875	15,759		0	AGA
	Södra Kungsvägen			0	0		0	Interspiro and others
	Offices, etc.						38
8	Sicklaön 146:25	2009	2,651	0	0	0.0	0	Assisted living
	Nacka			0	2,651		0	Carema
	Fjällstigen 1			0	0		0
	Assisted living						0
9	Valsta 4:20	2009	5,425	0	0	0.0	0	Assisted living
	Sigtuna			0	5,425		0	Sigtuna Kommun
	Midgårdsvägen 12			0	0		0
	Assisted living						0

FULLY DEVELOPED COMMERCIAL PROPERTIES

No.	Property	Total Tax year rentable Rentable space, Age 2008 space by category			Income 2008	Rental income by category	Major tenants
	Municipality	Construction year	Assessed		Hotel	Housing	Rental income	Hotel/Offices
	Address	Renovation year	tax value		Office	Other		Retail
	Description				Retail	Garage		Housing
								Other/Garage
			SEKm	m2	m2	m2	SEKm	%
10	Yxlö 3:51	1984	1.0	427	0	0	0.5	0	Internal used by JM
	Nynäshamn	1993			0	427		0
	Ådudden				0	0		0
	Conference facility							100
11	Haugsnesfjero	2007	0.0	242	0	0	0.0	100
	Os kommun, Norway				242	0		0
	Haugsnesfjero sektion 6				0	0		0
	Offices							0
12	Haugsnesfjero	2007	0.0	83	0	0	0.1	100	Cha Zet AS
	Os kommun, Norway				83	0		0
	Haugsnesfjero sektion 7				0	0		0
	Offices							0
13	Beitostølen	1990	2.5	90	0	90	0.0	0	Internal used by JM
	Beitostølen, Norway				0	0		0
	Øystre Slidre				0	0		100
	Cabins/lodge							0
14	Rud	1976	44.1	1,444	0	0	2.1	100	Cramo AS
	Bærum, Norway	1985			250	1,194		0
	Bærumsveien 471				0	0		0
	Offices/warehouse							0
15	Rud	1978	94.5	1,855	0	0	4.5	100	Internal used by JM
	Bærum, Norway	1986			1,855	0		0
	Bærumsveien 473				0	0		0
	Offices							0
16	Grefsen (50 %)	1978	26.5	1,997	0	0	2.2	100	Steinar Hansen AS
	Bærum, Norway	1986			1,997	0		0	Danmon Norge AS
	Bærumsveien 473				0	0		0	Tour & Andersson
	Offices							0	Micro Maltic

DEVELOPMENT PROPERTIES—RESIDENTIAL

Country	Property/project Municipality Location type	Number of residential units in housing projects not yet started	Development period	Current rentable space Dec. 2008	Rental income 2008	Form of tenure	Planning process Planning phase Production
		approx.		m2	SEKm
Sweden	Långbro Stockholm	320	2000–2013	300	0.2	Tenant-owner	Detailed plan
	Älvsjö					association	Production start 2000
Sweden	Liljeholmskajen	1,650	2001–2016	4,000	2.5		Detailed plan—1,000 res.
	Stockholm Årstadal/Liljeholmen					Tenant-owner association	Production start 2001
Sweden	Liljeholmen Stockholm	280	2013–2015	2,800	3.0		Detailed plan 2013
	Liljeholmen/Gröndal						Production start 2013
Sweden	Lustgården Stockholm	300	2010–2012				Detailed plan
	Kungsholmen						Production start 2010
Sweden	Telefonplan Stockholm	210	2010–2012				Detailed plan 2010
	Telefonplan						Production start 2010
Sweden	Hägernäs	185	2001–2012	9,700	6.0		Detailed plan—160 res.
	Täby					Tenant-owner
Sweden	Close to water Norra Frösunda	300	2001–2013			association	Production start 2002 Detailed plan
	Solna					Tenant-owner
	Frösundavik					association	Production start 2003
Sweden	Järvastaden	825	2007–2020			Tenant-owner	Detailed plan
	Solna/Sundbyberg					association/
	Solna and Sundbyberg					Freehold apartments	Production start 2007
Sweden	Dalénum	630	2007–2018				Detailed plan 2009
	Lidingö					Tenant-owner
	Close to water					association	Production start 2010
Sweden	Kvarnholmen Nacka	1,050	2009–2020	approx. 22,500	15.0	Tenant-owner	Detailed plan 2009
	Close to water					association	Production start 2009
Sweden	Charlottendal/Farstadal Värmdö	450	2002–2016			Tenant-owner association/	Detailed plan—100 res.
	Gustavsberg					Freehold apartments	Production start 2003
Sweden	Östermalm	350	2005–2014				Detailed plan
	Västerås					Tenant-owner
	City					association	Production start 2005
Sweden	Bällstaberg Vallentuna	200	2001–2015			Tenant-owner	Detailed plan—50 res.
	Bällstabergsvägen					association	Production start 2002
Sweden	Industristaden	620	2002–2014	approx. 14,000	3.4		Detailed plan—100 res.
	Uppsala Kungsängen					Tenant-owner association	Production start 2003
Sweden	Librobäck	200	2010–2012	8,600	5.1		Detailed plan 2011
	Uppsala					Tenant-owner
	Yttre Luthagen					association	Production start 2012
Sweden	Kviberg	400	2003–2015				Detailed plan 2009
	Göteborg					Tenant-owner
	By the river Säveån					association	Production start 2010
Sweden	Västra Eriksberg	350	2009–2013				Detailed plan
	Göteborg Norra Älvstranden					Tenant-owner association	Production start 2009
Sweden	Juvel Kvarnen	300	2006–2013				Detailed plan 2009
	Göteborg					Tenant-owner
	Norra Älvstranden					association	Production start 2006
Sweden	Kolla	300	2011–2015			Tenant-owner	Detailed plan 2010
	Kungsbacka					association/
	Central					Freehold apartments	Production start 2011
Sweden	Dockan	310	2003–2016				Detailed plan—110 res.
	Malmö Västra Hamnen					Tenant-owner association	Production start 2003

Development Properties—Residential Cont'd.

DEVELOPMENT PROPERTIES—RESIDENTIAL

Country	Property/project Municipality Location type	Number of residential units in housing projects not yet started approx.	Development period	Current rentable space Dec. 2008 m2	Rental income 2008 SEKm	Form of tenure	Planning process Planning phase Production
Sweden	Glasbruket	200	2009–2013				Detailed plan
	Malmö					Tenant-owner
	Limhamn					association	Production start 2009
Sweden	Lomma	750	2003–2017			Tenant-owner	Detailed plan
	Lomma					association
	Lomma Hamn					Freehold apartments	Production start 2004
Sweden	Vallkärratorn	250	2005–2016				Detailed plan—66 res.
	Lund
	Stångby					Freehold apartments	Production start 2005
Sweden	Kugghjulet	475	2013–2020	17,500	8.1		Detailed plan 2013
	Lund					Tenant-owner
	Lund					association	Production start 2013
Sweden	Raffinaderiet	240	2009–2015	4,400	3.3		Detailed plan 2009
	Lund					Tenant-owner
	By rail station					association	Production start 2009
Total		11,145
Other building rights, not specified		12,055
	Total building rights, Sweden	23,200

DEVELOPMENT PROPERTIES—RESIDENTIAL

Country	Property/project Municipality Location type	Number of residential units in housing projects not yet started	Development period	Current rentable space Dec. 2008	Rental income 2008	Form of tenure	Planning process Planning phase Production
		approx.		m2	SEKm
Norway	Stongafjellet	500	2005–2015				Control plan
	Askøj Bergen
	Close to nature, ocean					Freehold apartments	Production start 2005
Norway	Koltveit	320	2010–2016				Control planning
	Fjell, Bergen
	Close to water					Freehold apartments	Production start 2010
Denmark	Enghave Brygge	485	2010–2016				Local plan 2010
	Copenhagen
	By the harbor					Freehold apartments	Production start 2011
Belgium	Merbraine	200	2010–2016				Detailed plan 1) 2009
	Braine l´Alleud
	Parksetting					Freehold apartments	Production start 2010
Total		1,505
Other building rights, not specified		6,295
	Total building rights International	7,800

1 ) Concept does not exist in Belgium.

PROPERTY SALES 2008
Object	Location	Purchase consideration, SEKm	Gains, SEKm
Housing stock Älta	Nacka	477	33
Residential property Bävern	Lidingö	57	18
Frösunda	Solna	39	18
Rock shelter Dalénum	Lidingö	10	0
Other project- and development properties		160	–1
Dissolution of earlier provisions in conjunction with property sales		5	5
Total		748	73

HEAD OFFICE AND STOCKHOLM OFFICE

JM AB Telegrafgatan 4, Solna SE-169 82 Stockholm Tel. +46 8 -782 87 00, fax +46 8 -782 86 00 Internet: www.jm.se

REGIONAL AND LOCAL OFFICES

East Region Uppsala (regional office) Sylveniusgatan 2 Box 1334, SE-751 43 Uppsala Tel. +46 18 - 66 03 00, fax +46 18 - 66 03 10

Västerås Kopparbergsvägen 8, SE-722 13 Västerås Tel. +46 21- 81 20 00, fax +46 21- 81 20 10

Örebro Vasastrand 11, SE-703 54 Örebro Tel. +46 19-764 15 10, fax +46 19-764 15 15

West Region Göteborg (regional office) Gårdatorget 2, SE-412 50 Göteborg

Tel. +46 31-703 57 00, fax +46 31-335 88 70 Jönköping

Tegnérgatan 5, SE-553 34 Jönköping Tel. +46 36 -585 10 00, fax +46 36 -12 03 66

Linköping Brigadgatan 24, SE-581 31 Linköping Tel. +46 13-37 14 00, fax +46 13-37 14 09

Malmö Region, South Region Malmö (regional office)

Box 327, SE-201 23 Malmö Visiting address: Jörgen Kocksgatan 9 Tel. +46 40 -16 56 00, fax +46 40 -16 56 01

Halmstad Brogatan 1, SE-302 43 Halmstad Tel. +46 35-299 42 50, fax +46 35-10 67 45

SUBSIDIARIES IN SWEDEN

AB Borätt Box 6048, SE-171 06 Solna Visiting address: Landsvägen 50 A, Sundbyberg Tel. +46 8 - 626 66 30, fax +46 8 - 626 98 20 www.boratt.se

Seniorgården AB Box 6048, SE-171 06 Solna Visiting address: Landsvägen 50 A, Sundbyberg Tel. +46 8 - 626 66 30, fax +46 8 - 626 98 20 www.seniorgarden.se

JM Entreprenad AB SE-169 82 Stockholm Visiting address: Strandbergsgatan 57 Tel. +46 8 -782 87 00, fax +46 8 -782 86 01 www.jm-entreprenad.se

SUBSIDIARIES OUTSIDE SWEDEN

Belgium

JM Avenue Louise 287 B-1050 Brussels Tel. +32 2 646 11 12, fax +32 2 646 96 26 www.jmconstruction.be

Denmark

JM Danmark A/S Vester Farimagsgade 37 DK-1606 København V Tel. + 45 33 45 70 00, fax + 45 33 45 70 70 www.jmdanmark.dk

Finland

JM Suomi Oy Sinimäentie 8B FI-02630 Espoo Tel. +358 9 4730 2610, fax +358 9 4730 2616 www.jmsuomi.fi

Norway

JM Byggholt AS Bærumsveien 473, Rud Postboks 33 N-1306 Bærum Postterminal Tel. + 47 67 17 60 00, fax + 47 67 17 60 01 www.jmbyggholt.no

Production: JM, Holy Diver and Lindermyr Produktion /Anette Andersson Text: JM

Photos and Illustrations: Torbjörn Bergkvist, Bildinfo, Per Bäckstrand, Cadwalk, Dark Arkitekter A/S, Dynagraph, Elitfönster, Jarl Feraeus, Sune Fridell, Richard Hammarskiöld, Mathias Landefjord, Kjell Arne Larsson, Jann Lipka, Ryno Quantz, Hans Sandqvist and Staffan Trägårdh. Repro and printing: Ljungbergs Tryckeri AB

Paper: Maxisatin 150g / 300g

JM AB (publ)

Mailing address SE-169 82 Stockholm Visiting address Telegrafgatan 4, Solna Telephone +46(0)8 782 87 00 Telefax +46(0)8 782 86 00 Company reg. no. 556045-2103 Website www.jm.se