AI assistant
JM — Interim / Quarterly Report 2011
Aug 24, 2011
2932_ir_2011-08-24_30376d24-cb4a-43e9-93a5-941930fa2e04.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Interim Report JANUARY - JUNE 2011, JM GROUP
Continued good demand in JM's main markets
- Revenues amounted to SEK 5,228m (4,114), including a negative impact on revenue of SEK -360m (-216) due to restatement according to IFRIC 15. Revenue according to segment reporting shows an increase of SEK 1,258m (-91)
- Number of residential units sold increased to 1,661 (1,462) and housing starts increased to 1,851 (1,621)
- Profit before tax improved to SEK 594m (294) including a negative impact on revenue of SEK -47m (-38) due to restatement according to IFRIC 15. Profit after tax improved to SEK 422m (205). Operating margin increased to 11.8 percent (8.0)
- Return on equity for the past twelve months was 21.4 percent (14.7). Earnings per share during the first six months of the year amounted to SEK 5.10 (2.50)
- Consolidated cash flow including net investment in properties was SEK -143m (-236)
- Major acquisition of land in Stockholm and residential building rights in Oslo completed after the end of the reporting period with potential for development of about 3,600 residential units.
The Group applies IFRIC 15 Agreements for the Construction of Real Estate for its income statement and balance sheet commencing in 2010. IFRIC 15 only changed reporting of revenue and profit and loss for JM's operations outside Sweden, JM International. Segment reporting and project management remain unchanged according to IAS 11, percentage of completion method. The description of operations is based on segment reporting.
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income Långbro Park, Stockholm |
5,228 | 4,114 | 2,681 | 2,406 | 10,250 | 9,136 |
| Operating profit | 618 | 330 | 339 | 208 | 1,195 | 907 |
| Profit before tax | 594 | 294 | 329 | 201 | 1,140 | 840 |
| Cash flow from operating activities | -143 | -236 | -78 | -148 | 135 | 42 |
| Operating margin (%) | 11.8 | 8.0 | 12.6 | 8.6 | 11.7 | 9.9 |
| Return on equity (%) | 21.4 | 15.7 | ||||
| Equity/assets ratio (%) | 39 | 38 | 39 | 38 | 40 | |
| Earnings per share (SEK) | 5.10 | 2.50 | 2.80 | 1.70 | 9.70 | 7.10 |
| Number of residential units sold | 1,661 | 1,462 | 821 | 705 | 3,475 | 3,276 |
| Number of housing starts | 1,851 | 1,621 | 943 | 872 | 3,634 | 3,404 |
GROUP
"Demand continued to be good for JM's housing in our main markets. However, the sales process has taken slightly longer due to the turmoil in the international financial market. Nevertheless, good sales and a steady reservation rate still allow the high level of housing starts to continue.
It is still too early to evaluate the effect of a potential slowdown in the economy on the housing market. Demand for JM's homes has continued to be steady even during the summer holidays.
Structurally, conditions for our business continue to be favorable, with factors such as large population increases in the markets where we are active. We are dynamically positioned with financial strength and a very good project portfolio that continues to be refined and renewed. It is also gratifying that we successfully completed major attractive acquisitions in both Stockholm and Oslo this summer."
Johan Skoglund, President and CEO.
Market, sales and housing starts
Demand for newly built homes continued to be good in JM's main markets in Sweden and Norway. Demand in Denmark weakened somewhat during the first half of 2011 after some improvement in 2010.
Sales have continued to be good. Population growth in our main markets, coupled with continued low interest rates, support demand for housing.
The number of residential units sold in the form of signed contracts was 1,661 (1,462) of which 0 (107) involve rental project. The percentage of sold or reserved homes in relation to current production amounts to 78 percent (83), with an interval of about 60-65 percent considered normal. JM Residential Stockholm sold 764 (657) residential units, JM Residential Sweden sold 623 (501) and JM International 274 (304).
The number of housing starts increased to 1,851 (1,621) including 867 (791) in the Stockholm area and 659 (542) elsewhere in Sweden. Housing starts in international operations totaled 325 (288). Residential housing starts include 0 (107) rental units. The number of residential units in current production amounts to 6,027 (4,959).
Income, operating profit and operating margin
The Group's reported revenue for the first half of the year amounted to SEK 5,228m (4,114), including a negative impact on revenue of SEK -360m (-216) due to restatement according to IFRIC 15. Revenue according to segment reporting increased by SEK 1,258m (-91).
Operating profit increased to SEK 618m (330) and the operating margin increased to 11.8 percent (8.0). Restatement according to IFRIC 15 had a negative impact on profit of SEK -47m (-38). The improvement in earnings and margins is due to the higher level of sales and housing starts in 2010/2011 and a higher price level for the projects.
During the first half of the year gains on the sale of properties amounted to SEK 25m (14). Rental income from JM's project properties totaled SEK 34m (30), with residential properties reporting for SEK 0m (0). Net rental income was SEK 9m (3).
| January - June | April - June | July - June | |||
|---|---|---|---|---|---|
| Operating profit, SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 |
| JM Residential Stockholm | 429 | 245 | 246 | 133 | 818 |
| JM Residential Sweden | 156 | 92 | 88 | 58 | 283 |
| JM International | 54 | 9 | 30 | 8 | 93 |
| JM Property Development | 14 | 7 | 13 | 6 | 19 |
| JM Production | 32 | 35 | 19 | 21 | 88 |
| Group-wide expenses | -20 | -20 | -9 | -9 | -35 |
| Total as stated in segment reporting | 665 | 368 | 387 | 217 | 1,266 |
| Restatement JM International 1) | -47 | -38 | -48 | -9 | -71 |
| Total 2) | 618 | 330 | 339 | 208 | 1,195 |
| 1) Effect of restatement on income and profit and loss according to IFRIC 15 in relation to segment reporting. |
|||||
| 2) Including property sales | 25 | 14 | 23 | 7 | 39 |
| January - June | April - June | July - June | |||
|---|---|---|---|---|---|
| Operating margin (%) | 2011 | 2010 | 2011 | 2010 | 2010/11 |
| JM Residential Stockholm | 18.1 | 14.8 | 18.6 | 14.8 | 18.0 |
| JM Residential Sweden | 8.8 | 6.9 | 9.0 | 7.4 | 8.9 |
| JM International | 6.1 | 1.2 | 6.5 | 2.0 | 5.4 |
| JM Production | 3.9 | 4.5 | 4.0 | 4.9 | 5.7 |
| Residential units in current production | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| Number of residential units in current production 1) | 6,027 | 4,959 | 5,431 |
| Percentage sold residential units in current production (%) 2) | 65 | 60 | 64 |
| Percentage reserved residential units in current production (%) | 13 | 23 | 18 |
| Percentage sold and reserved residential units in current | |||
| production (%) | 78 | 83 | 82 |
1) Beginning with production startup through final occupancy according to plan.
2) Percentage sold residential units expressed as binding contract with end customer.
| Completed production, unsold units | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| Completed production, number of unsold units 1) | 48 | 79 | 44 |
| - Including the balance sheet item reported as "Participations in tenant-owners associations, etc." |
39 | 62 | 40 |
1) After final occupancy according to plan.
Building rights
JM's available building rights amount to 26,500 residential units (27,400) including 17,000 (18,100) that are recognized on the balance sheet. Capital tied up in building rights (development properties on the balance sheet) for residential units increased to SEK 5,509m (4,847) at the end of the first six months of the year.
JM acquired development properties for residential units during the first half of the year for SEK 662m (539), of which SEK 323m relates to JM Residential Stockholm, SEK 205m to JM Residential Sweden and SEK 134m to JM International.
Financial items
Net financial items improved by SEK 12m year-on-year, mainly due to lower average interest-bearing debt. Financial income and expenses during the first half of the year include revaluation and currency hedging of intragroup claims on JM International with a net effect on net interest income of SEK 0m (-3). Financial income for the first six months includes income from the sale of shares in associated companies of SEK 0m (5).
| January - June | April - June | July - June | Full Year | |||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Financial income 1) | 25 | 34 | 16 | 14 | 42 | 51 |
| Financial expenses 2) | -49 | -70 | -26 | -21 | -97 | -118 |
| Financial income and expenses | -24 | -36 | -10 | -7 | -55 | -67 |
| 1) Including revaluation and currency hedging | 8 | 24 | 6 | 5 | 16 | 32 |
| 2) Including revaluation and currency hedging | -8 | -27 | -6 | -4 | -14 | -33 |
The total interest-bearing loan was SEK 1,599m (1,348), of which the provision for pensions comprised SEK 600m (580). At the end of the first half of the year the average interest rate for the total loan stock including pension liabilities was 4.0 percent (3.3). The average term for fixed-rate loans excluding pension liabilities was 0.3 years (0.3).
The Group's available liquidity was SEK 4,590m (4.547). Aside from cash and cash equivalents of SEK 1,790m (1,747), 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 2.1 years.
Interest-bearing receivables at the end of the first half of the year totaled SEK 191m (400). At the end of the first half of the year non interest-bearing liabilities for implemented property acquisitions amounted to SEK 411m (351). About SEK 213m (226) of these liabilities are short-term.
| January - June | April - June | July - June | Full Year | |||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Interest-bearing net liabilities(+)/ | ||||||
| receivables(-) at beginning of the period | -730 | -189 | -683 | -115 | -400 | -189 |
| Change in interest-bearing net | ||||||
| liabilities/receivables | 539 | -211 | 492 | -285 | 209 | -541 |
| Interest-bearing net liabilities(+)/ receivables(-) at end of the period |
-191 | -400 | -191 | -400 | -191 | -730 |
Cash flow
Cash flow from operating activities totaled SEK -143m (-236) during the first half of the year. Net investments in development properties resulted in a cash flow of SEK -212m (-598). Increased holdings of unsold residential units had a negative impact of SEK -2m (156) on the balance sheet. The Group's cash flow from project properties (sales minus investment) during the first half totaled SEK 26m (-47). In addition, a temporary increase in working capital had a negative impact on cash flow.
Risks and uncertainties
JM's risk and risk management policies are presented in the 2010 annual report on pages 38-41. No significant changes have occurred to change these reported risks.
Convertible and warrant programs
The 2011 Annual General Meeting resolved that JM will raise a convertible debenture loan of a maximum of SEK 120m through the issue of a maximum of 530,000 convertible debentures aimed at all employees in Sweden and the issue of a maximum of 95,000 warrants aimed at all employees outside Sweden, with a term of four years.
Upon expiry of the subscription period the loan will amount to about SEK 24m through the issue of about 114,000 convertible debentures and about 5,000 warrants.
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.
Each convertible debenture and warrant may be converted into one share, at a price of SEK 214, beginning on June 2, 2014 until and including May 22, 2015.
Through conversion JM's share capital could increase by a maximum of SEK 119,000, equivalent to a dilution of about 0.1 percent of JM's share capital and votes.
The convertible debenture loan was settled against cash in July 2011.
Holding of treasury shares
During the second quarter, the 2008 performance share program for senior executives within the JM Group was essentially completed. In all, 13,196 shares of JM's holdings were sold to senior executives for the agreed strike price of SEK 10 per share, after which holdings of treasury shares amounted to 151,111.
The number of shares outstanding is 83,268,236 at the reporting date.
Human resources
At the end of the first half year JM had 2,221 (1,933) employees, including 1,064 (920) wageearners and 1,157 (1,013) white collar employees. The number of employees increased according to plan to handle the growing production volume.
BUSINESS SEGMENT
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.
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income | 2,365 | 1,655 | 1,320 | 899 | 4,534 | 3,824 |
| Operating profit 1) | 429 | 245 | 246 | 133 | 818 | 634 |
| Operating margin (%) | 18.1 | 14.8 | 18.6 | 14.8 | 18.0 | 16.6 |
| Average operating capital | 1,985 | 1,776 | ||||
| Return on operating capital (%) | 41.2 | 35.7 | ||||
| Operating cash flow | -110 | -159 | -211 | -291 | 15 | -34 |
| Carrying amount, development properties | 2,691 | 2,155 | 2,562 | |||
| Number of available building rights | 10,900 | 10,500 | 11,100 | |||
| Number of residential units sold 2) | 764 | 657 | 369 | 299 | 1,515 | 1,408 |
| Number of housing starts 3) | 867 | 791 | 439 | 427 | 1,680 | 1,604 |
| Number of residential units in current prod. | 3,116 | 2,505 | 2,691 | |||
| Number of employees | 802 | 665 | 740 | |||
| 1) Including property sales | - | - | - | - | 2 | 2 |
| 2) Of which rental apartments | - | 107 | - | 62 | 104 | 211 |
| 3) Of which rental apartments | - | 107 | - | 62 | 104 | 211 |
Demand for housing continues to be good. In the existing home market, both the supply of housing and starting bid prices are on a par with 2010, but time to closing has increased The supply of new homes continues to be low in relation to long-term demand in the Stockholm area.
Interest in JM's projects is strong, though the reservation rate slowed down to a more normal level during the quarter.
The business segment's income increased to SEK 2,365m (1,655) and operating profit increased to SEK 429m (245). Operating margin was 18.1 percent (14.8). The increased income is a result of the larger number of residential units in current production and the improved operating margin is mainly attributable to higher prices in the projects.
The negative cash flow during the quarter is due to the net investment in development properties and a temporary increase in operating capital.
JM started production during the second quarter on a total of 415 residential units in apartment buildings in Nacka and Stockholm, as well as 24 single-family homes in Solna.
During the quarter JM acquired the leasehold rights for a site at Brommaplan in Stockholm, where Hotel Scandic Bromma is located, as part of a partnership with City of Stockholm to remodel Brommaplan and build new residential units, as well as offices and commercial buildings.
JM also purchased building rights corresponding to about 125 homes in Stockholm during the second quarter.
After the reporting period JM and Skanska jointly acquired the land where Täby race track is located with the intention of cooperating with Täby Municipality to develop a completely new neighborhood of 4,000 residential units, as well as workplaces and service facilities. The initial purchase price for JM is SEK 135m. JM also acquired a property currently in the planning process for about 600 residential units in Järfälla after the end of the reporting period.
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.
| January - June April - June July - June |
Full Year | |||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income | 1,768 | 1,326 | 976 | 785 | 3,191 | 2,749 |
| Operating profit 1) | 156 | 92 | 88 | 58 | 283 | 219 |
| Operating margin (%) | 8.8 | 6.9 | 9.0 | 7.4 | 8.9 | 8.0 |
| Average operating capital | 1,462 | 1,471 | ||||
| Return on operating capital (%) | 19.4 | 14.9 | ||||
| Operating cash flow | 129 | 247 | 83 | 125 | 194 | 312 |
| Carrying amount, development properties | 1,512 | 1,429 | 1,497 | |||
| Number of available building rights | 9,000 | 10,200 | 9,600 | |||
| Number of residential units sold | 623 | 501 | 303 | 276 | 1,329 | 1,207 |
| Number of housing starts | 659 | 542 | 332 | 321 | 1,347 | 1,230 |
| Number of residential units in current prod. | 1,955 | 1,561 | 1,708 | |||
| Number of employees | 589 | 509 | 578 | |||
| 1) Including property sales | 3 | 0 | 3 | 0 | 3 | 0 |
Demand for housing continues to be good. The supply of housing on the existing home market is on a par with 2010. Starting bid prices have increased in Malmö and Gothenburg, while prices have dropped in Linköping. In other parts of the business segment prices are on a par with 2010.
Interest in JM projects is strong, with solid sales during the first half of the year.
The business segment's income increased to SEK 1,768m (1,326) and operating profit increased to SEK 156m (92). Operating margin increased to 8.8 percent (6.9). The increased volume is a result of the larger number of residential units in current production and the improved operating margin is mainly attributable to higher prices in the projects.
Cash flow is in balance, taking the investment level in development properties into account.
JM started production during the second quarter on a total of 292 residential units in apartment buildings in Malmö, Gothenburg, Örebro and Uppsala, as well as 40 single-family homes in Lund and Jönköping.
During the second quarter JM acquired building rights equivalent to about 200 residential units in Malmö, Helsingborg and Gothenburg.
JM INTERNATIONAL
The JM International business segment develops and sells residential properties in Norway, Denmark, Finland and Belgium. Revenue recognition for the business segment is reported according to IAS 11, percentage of completion method.
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income | 881 | 744 | 464 | 408 | 1,707 | 1,570 |
| Operating profit | 54 | 9 | 30 | 8 | 93 | 48 |
| Operating margin (%) | 6.1 | 1.2 | 6.5 | 2.0 | 5.4 | 3.1 |
| Average operating capital | 1,718 | 1,838 | ||||
| Return on operating capital (%) | 5.4 | 2.6 | ||||
| Operating cash flow | 15 | 51 | -10 | 126 | 200 | 236 |
| Carrying amount, development properties | 1,306 | 1,263 | 1,255 | |||
| Carrying amount, project properties | 35 | 35 | 34 | |||
| Number of available building rights | 6,600 | 6,700 | 6,800 | |||
| Number of residential units sold | 274 | 304 | 149 | 130 | 631 | 661 |
| Number of housing starts | 325 | 288 | 172 | 124 | 607 | 570 |
| Number of residential units in current prod. | 956 | 893 | 1,032 | |||
| Number of employees | 266 | 245 | 250 |
The business segment's income increased to SEK 881m (744). Operating profit increased to SEK 54m (9) and the operating margin to 6.1 percent (1.2). The improvement in profit and operating margin can be attributed to better demand, increased project volume and a more stable market.
The negative cash flow for the quarter can mainly be explained by the increased operating capital.
Norway
Demand for newly built homes and homes on the existing home market continued to be good. The supply of homes for sale in the market has stabilized at a relatively high level. The price level on the existing home market increased during the first half of the year.
During the first half of the year JM sold 250 (265) residential units and construction began on 258 (240) homes. JM started production during the second quarter on a total of 105 residential units including 51 residential units in apartment buildings in Oslo, and 54 single-family homes in Telemark and Vestfold. The number of residential units in current production is 748 (813).
During the second quarter JM purchased building rights corresponding to about 40 homes in Oslo. Available building rights correspond to 4,900 (4,800) residential units.
After the end of the reporting period JM Norge acquired all shares in Öie AS, Oslo, and a project portfolio for residential development of about 350 building rights. The purchase consideration of SEK 443m, for Öie AS and building rights, was paid in conjunction with the closing on July 1, 2011. The deal also includes conditional acquisition of about 300 building rights and about 400 building rights in the form of options.
Öie AS is a highly renowned construction and project development company with about 70 employees and a building rights portfolio mainly located in northern Oslo. The acquisition is a good fit with JM's growth strategy and overall the deal entails potential development of about 1,000 residential units in Oslo.
Denmark
The Copenhagen housing market is characterized by low activity after some improvement in demand in 2010. Banks continued their restrictive lending practices, which offset the positive effect of low interest rates.
During the first half of the year JM sold 14 (25) residential units and construction began on 0 (0) homes. The number of residential units in current production amounts to 62 (0). No acquisitions were made during the second quarter. Available building rights correspond to about 700 (900) residential units.
Finland
Activity on the housing market in Helsinki stabilized at a higher level. Interest in newly built homes is strong. The price level on the existing home market increased during the first half of the year.
During the first half of the year JM sold 0 (0) residential units and construction began on 31 (0) homes. Production of a single-family home project began in the Helsinki area during the second quarter.
The number of residential units in current production amounts to 62 (0). No acquisitions were made during the second quarter. Available building rights correspond to about 100 (100) residential units.
Belgium
In the Brussels region, where JM has its operations, activity in the housing market continues to be stable.
During the first half of the year JM sold 10 (14) residential units and construction began on 36 (48) homes. Production began on an apartment building with 36 residential units in Brussels during the second quarter. The number of residential units in current production amounts to 84 (80). No acquisitions were made during the second quarter.
Available building rights correspond to about 900 (900) residential units.
JM PROPERTY DEVELOPMENT
The JM Property Development business segment primarily develops rental housing, residential care facilities and commercial properties in Greater Stockholm. The business segment's entire portfolio comprises project development properties.
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income | 33 | 41 | 17 | 15 | 64 | 72 |
| Operating profit 1) | 14 | 7 | 13 | 6 | 19 | 12 |
| Average operating capital | 770 | 708 | ||||
| Return on operating capital (%) | 2.5 | 1.7 | ||||
| Operating cash flow | 15 | -86 | 86 | -60 | -17 | -118 |
| Carrying amount, development properties | 61 | 107 | 60 | |||
| Carrying amount, project properties | 748 | 612 | 625 | |||
| Number of employees | 17 | 15 | 17 | |||
| 1) Including property sales | 22 | 14 | 20 | 7 | 34 | 26 |
The business segment's income decreased to SEK 33m (41), including rental revenue of SEK 33m (29) and contracting revenue of SEK 0m (12). Operating profit was SEK 14m (7).
Contracting from production totaled SEK 0m (5). Net rental income for project properties was SEK 9m (5). The improvement of net rental income is due to factors such as increased rental income and lower operating costs in the Dalénum area on Lidingö.
Gains on property sales amounted to SEK 22m (14). During the second quarter JM sold the Solbacka senior housing facility in Norrtälje with gains of SEK 23m, of which SEK 20m is reported in JM Property Development and SEK 3m in JM Residential Sweden.
The positive cash flow for the first six months of the year can mainly be explained by the sale of the Solbacka senior housing facility for SEK 113m.
Within the Dalénum area on Lidingö, the occupancy rate in the buildings that will not be demolished is 89 percent. Production of special housing for the elderly with 54 residential units is progressing according to plan. At a later stage, JM has plans to build 225 rental apartments in the area.
Within the Bolinder area in Kallhäll, Järfälla, tenant adjustments continue in the stock that will be retained. The occupancy rate is 90 percent.
JM PRODUCTION
The JM Production business segment carries out construction work for external and internal customers in the Greater Stockholm area.
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income 1) | 827 | 780 | 480 | 431 | 1,543 | 1,496 |
| Operating profit | 32 | 35 | 19 | 21 | 88 | 91 |
| Operating margin (%) | 3.9 | 4.5 | 4.0 | 4.9 | 5.7 | 6.1 |
| Operating cash flow | -56 | -4 | -49 | 16 | -16 | 36 |
| Number of employees | 425 | 397 | 399 | |||
| 1) Including internally | 286 | 216 | 160 | 121 | 507 | 437 |
Demand in the contracting market in Stockholm continues to be good with a high willingness to invest in residential and commercial premises. The site preparation market has stabilized at a high level. Orders are good in the business segment, with a large number of projects in current production.
The business segment's income totaled SEK 827m (780) and operating profit was SEK 32m (35). The operating margin was 3.9 percent (4.5).
A temporary increase in operating capital has had a negative impact on cash flow.
During the second quarter the business segment received a number of new projects, the largest of which are a collaborative contract for rebuilding a school in Stockholm for SISAB, renovation of and addition to Pir F Västra at Arlanda for Swedavia, streets and conduits for Tyresö and Nacka Municipalities, and site and track work for expansion of railway tracks in Bromma for AB Storstockholms Lokaltrafik. An additional stage of apartment buildings in Bromma is under construction for JM Residential Stockholm.
The largest projects currently are the two phases of the new E18 highway from Hjulsta to Kista (Swedish Transport Administration), renovation of the Gamla Riksarkivet on Riddarholmen (National Property Board) and an addition to an existing residential building in Stockholm for an external client. Other projects include new construction of rental apartments in Åkersberga for external client, and renovation of and addition to schools (Nacka and Sollentuna Municipalities). A new project is underway in Hammarby Sjöstad to build streets and conduits for the City of Stockholm. Projects for JM Residential Stockholm include construction of apartment buildings in Bromma and on Värmdö, as well as site work within the Dalenum area on Lidingö.
CONDENSED CONSOLIDATED INCOME STATEMENT
| January - June | April - June July - June Full Year | |||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Income | 5,228 | 4,114 | 2,681 | 2,406 | 10,250 | 9,136 |
| Production and operating costs | -4,252 | -3,458 | -2,162 | -2,030 | -8,402 | -7,608 |
| Gross profit | 976 | 656 | 519 | 376 | 1,848 | 1,528 |
| Selling and administrative expenses | -383 | -340 | -203 | -175 | -692 | -649 |
| Gains on the sale of properties | 25 | 14 | 23 | 7 | 39 | 28 |
| Operating profit | 618 | 330 | 339 | 208 | 1,195 | 907 |
| Financing income and expenses | -24 | -36 | -10 | -7 | -55 | -67 |
| Profit before tax | 594 | 294 | 329 | 201 | 1,140 | 840 |
| Taxes | -172 | -89 | -94 | -59 | -329 | -246 |
| Net profit for the period | 422 | 205 | 235 | 142 | 811 | 594 |
| Other comprehensive income | ||||||
| Translation differences | 18 | -61 | 29 | -18 | -26 | -105 |
| Total comprehensive income for the period | 440 | 144 | 264 | 124 | 785 | 489 |
| Net result for the period attributable to: Shareholders of the parent company |
422 | 205 | 235 | 142 | 811 | 594 |
| Total comprehensive income attributable to: Shareholders of the parent company |
440 | 144 | 264 | 124 | 785 | 489 |
| Earnings per share, basic and diluted, attributable to shareholders of the parent company (SEK) 1) |
5.10 | 2.50 | 2.80 | 1.70 | 9.70 | 7.10 |
| No. of shares outstanding at close of period | 83,268,236 | 83,237,058 | 83,268,236 | 83,237,058 | 83,268,236 | 83,237,058 |
| Average number of shares, basic | 83,244,272 | 83,221,927 | 83,249,290 | 83,226,971 | 83,240,616 | 83,229,492 |
| Average number of shares, diluted | 84,740,976 | 84,565,071 | 84,703,484 | 84,584,070 | 84,752,136 | 84,671,817 |
1) Profit for the period.
CONDENSED CONSOLIDATED BALANCE SHEET
| SEK m | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | 173 | 256 | 219 |
| Project properties | 783 | 647 | 661 |
| Development properties | 5,570 | 4,954 | 5,374 |
| Participations in tenant-owners associations, etc. 1) | 99 | 166 | 115 |
| Current receivables 2) | 1,687 | 1,755 | 1,437 |
| Cash and cash equivalents | 1,790 | 1,747 | 2,087 |
| Total current assets | 9,929 | 9,269 | 9,674 |
| Total assets | 10,102 | 9,525 | 9,893 |
| EQUITY AND LIABILITIES 3) | |||
| Shareholders' equity | 3,990 | 3,577 | 3,923 |
| Non-current interest-bearing liabilities | 247 | 236 | 258 |
| Other non-current liabilities | 198 | 125 | 218 |
| Non-current provisions | 1,867 | 1,717 | 1,833 |
| Total non-current liabilities | 2,312 | 2,078 | 2,309 |
| Current interest-bearing liabilities | 752 | 532 | 514 |
| Other current liabilities | 2,942 | 3,211 | 3,036 |
| Current provisions | 106 | 127 | 111 |
| Total current liabilities | 3,800 | 3,870 | 3,661 |
| Total shareholders' equity and liabilities | 10,102 | 9,525 | 9,893 |
| Pledged assets | 639 | 369 | 359 |
| Contingent liabilities | 5,607 | 4,555 | 4,675 |
| 1) Including Egholm, Denmark | - | 98 | 0 |
| 2) Including receivables from property sales | 35 | 0 | 35 |
| 3) Including liabilities for property acquisition | 486 | 406 | 508 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| January - June | Full Year | ||
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Opening balance at beginning of the year | 3,923 | 3,637 | 3,637 |
| Total comprehensive income for the period | 440 | 144 | 489 |
| Dividend | -375 | -208 | -208 |
| Redemption of convertible loan | 2 | - | - |
| Equity component of convertible debentures | 2 | 3 | 3 |
| Share-based payments regulated with equity instruments | -2 | 1 | 2 |
| Closing balance at end of period | 3,990 | 3,577 | 3,923 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| SEK m | 2011 | January - June 2010 |
2011 | April - June 2010 |
July - June Full Year 2010/11 |
2010 |
|---|---|---|---|---|---|---|
| Cash flow from current operations before | ||||||
| change in working capital | 398 | 173 | 243 | 151 | 879 | 654 |
| Investments in development properties, etc. 1) | -835 | -1 234 | -531 | -935 | -2,000 | -2,399 |
| Payment on account for development | ||||||
| properties etc. 2) | 621 | 792 | 391 | 451 | 1,502 | 1,673 |
| Investment in project properties | -92 | -47 | -18 | -25 | -118 | -73 |
| Sale of project properties | 118 | - | 116 | - | 118 | 0 |
| Change in current liabilities/receivables | -353 | 80 | -279 | 210 | -246 | 187 |
| Cash flow from current operations | -143 | -236 | -78 | -148 | 135 | 42 |
| Cash flow from investment activities | 40 | 0 | -1 | 0 | 47 | 7 |
| Loans raised | 397 | 258 | 372 | - | 562 | 423 |
| Amortization of debt | -218 | -94 | -155 | -85 | -326 | -202 |
| Dividend | -375 | -208 | -375 | -208 | -375 | -208 |
| Cash flow from financing activities | -196 | -44 | -158 | -293 | -139 | 13 |
| Cash flow for the period | -299 | -280 | -237 | -441 | 43 | 62 |
| Cash and cash equivalents at end of the | ||||||
| period | 1,790 | 1,747 | 1,790 | 1,747 | 1,790 | 2,087 |
| 1) Including investment in participations in tenant-owners associations and freehold residential units |
-131 | -137 | -95 | -31 | -286 | -292 |
| 2) Including sale of participations in tenant-owners associations and freehold residential units |
129 | 293 | 67 | 146 | 398 | 562 |
KEY FIGURES
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| % | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Operating margin | 11.8 | 8.0 | 12.6 | 8.6 | 11.7 | 9.9 |
| Pre-tax return on capital employed | 23.5 | 17.8 | ||||
| Return on equity | 21.4 | 15.7 | ||||
| Debt/equity ratio (x) | - | - | - | - | - | |
| Equity/assets ratio | 39 | 38 | 39 | 38 | 40 |
Accounting Policies
This interim report for the first half of the year was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The consolidated accounts were prepared in accordance with the International Financial Reporting Standards (IFRS). Since the Parent Company is an enterprise within the EU, only EU-approved IFRS will be applied.
The accounting policies applied in this interim report are described in the 2010 Annual Report, pages 54-57. The accounting policies and methods of calculation for the group are the same as those applied in the annual report for the previous year.
New and changed accounting standards and interpretations that apply from 2011 are extremely limited in scope and are not assessed to have any effect on JM's financial reports.
INCOME BY COUNTRY
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Sweden | 4,707 | 3,586 | 2,633 | 2,009 | 8,825 | 7,704 |
| Norway | 727 | 680 | 363 | 360 | 1,419 | 1,372 |
| Denmark | 70 | 6 | 41 | 4 | 129 | 65 |
| Finland | 42 | 9 | 30 | 8 | 73 | 40 |
| Belgium | 42 | 49 | 30 | 36 | 86 | 93 |
| Restatement JM International 1) | -360 | -216 | -416 | -11 | -282 | -138 |
| Total | 5,228 | 4,114 | 2,681 | 2,406 | 10,250 | 9,136 |
INCOME BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | 2,365 | 1,655 | 1,320 | 899 | 4,534 | 3,824 |
| JM Residential Sweden | 1,768 | 1,326 | 976 | 785 | 3,191 | 2,749 |
| JM International | 881 | 744 | 464 | 408 | 1,707 | 1,570 |
| JM Property Development | 33 | 41 | 17 | 15 | 64 | 72 |
| JM Production | 827 | 780 | 480 | 431 | 1,543 | 1,496 |
| Elimination | -286 | -216 | -160 | -121 | -507 | -437 |
| Total as stated in segment reporting | 5,588 | 4,330 | 3,097 | 2,417 | 10,532 | 9,274 |
| Restatement JM International 1) | -360 | -216 | -416 | -11 | -282 | -138 |
| Total | 5,228 | 4,114 | 2,681 | 2,406 | 10,250 | 9,136 |
OPERATING PROFIT BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | 429 | 245 | 246 | 133 | 818 | 634 |
| JM Residential Sweden | 156 | 92 | 88 | 58 | 283 | 219 |
| JM International | 54 | 9 | 30 | 8 | 93 | 48 |
| JM Property Development | 14 | 7 | 13 | 6 | 19 | 12 |
| JM Production | 32 | 35 | 19 | 21 | 88 | 91 |
| Group-wide costs | -20 | -20 | -9 | -9 | -35 | -35 |
| Total as stated in segment reporting | 665 | 368 | 387 | 217 | 1,266 | 969 |
| Restatement JM International 1) | -47 | -38 | -48 | -9 | -71 | -62 |
| Total | 618 | 330 | 339 | 208 | 1,195 | 907 |
OPERATING MARGIN BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| % | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | 18.1 | 14.8 | 18.6 | 14.8 | 18.0 | 16.6 |
| JM Residential Sweden | 8.8 | 6.9 | 9.0 | 7.4 | 8.9 | 8.0 |
| JM International | 6.1 | 1.2 | 6.5 | 2.0 | 5.4 | 3.1 |
| JM Production | 3.9 | 4.5 | 4.0 | 4.9 | 5.7 | 6.1 |
AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT
| July - June | Full Year | |
|---|---|---|
| SEK m | 2010/11 | 2010 |
| JM Residential Stockholm | 1,985 | 1,776 |
| JM Residential Sweden | 1,462 | 1,471 |
| JM International | 1,718 | 1,838 |
| JM Property Development | 770 | 708 |
RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT
| July - June | Full Year | |
|---|---|---|
| % | 2010/11 | 2010 |
| JM Residential Stockholm | 41.2 | 35.7 |
| JM Residential Sweden | 19.4 | 14.9 |
| JM International | 5.4 | 2.6 |
| JM Property Development | 2.5 | 1.7 |
1) Effect of restatement on income and profit and loss according to IFRIC 15 in relation to segment reporting.
OPERATING CASH FLOW BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | -110 | -159 | -211 | -291 | 15 | -34 |
| JM Residential Sweden | 129 | 247 | 83 | 125 | 194 | 312 |
| JM International | 15 | 51 | -10 | 126 | 200 | 236 |
| JM Property Development | 15 | -86 | 86 | -60 | -17 | -118 |
| JM Production | -56 | -4 | -49 | 16 | -16 | 36 |
DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT
| Carrying amount, SEK m | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| JM Residential Stockholm | 2,691 | 2,155 | 2,562 |
| JM Residential Sweden | 1,512 | 1,429 | 1,497 |
| JM International | 1,306 | 1,263 | 1,255 |
| JM Property Development | 61 | 107 | 60 |
| Total | 5,570 | 4,954 | 5,374 |
AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT
| Number | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| JM Residential Stockholm | 10,900 | 10,500 | 11,100 |
| JM Residential Sweden | 9,000 | 10,200 | 9,600 |
| JM International | 6,600 | 6,700 | 6,800 |
| Total | 26,500 | 27,400 | 27,500 |
| Recognized on the balance sheet (development properties) | |||
| JM Residential Stockholm | 6,700 | 7,300 | 7,100 |
| JM Residential Sweden | 5,900 | 6,400 | 6,100 |
| JM International | 4,400 | 4,400 | 4,400 |
| Total | 17,000 | 18,100 | 17,600 |
RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| Number | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | 764 | 657 | 369 | 299 | 1,515 | 1,408 |
| JM Residential Sweden | 623 | 501 | 303 | 276 | 1,329 | 1,207 |
| JM International | 274 | 304 | 149 | 130 | 631 | 661 |
| Total | 1,661 | 1,462 | 821 | 705 | 3,475 | 3,276 |
HOUSING STARTS BY BUSINESS SEGMENT
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| Number | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| JM Residential Stockholm | 867 | 791 | 439 | 427 | 1,680 | 1,604 |
| JM Residential Sweden | 659 | 542 | 332 | 321 | 1,347 | 1,230 |
| JM International | 325 | 288 | 172 | 124 | 607 | 570 |
| Total | 1,851 | 1,621 | 943 | 872 | 3,634 | 3,404 |
RESIDENTIAL UNITS IN CURRENT PRODUCTION
| Number | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| JM Residential Stockholm | 3,116 | 2,505 | 2,691 |
| JM Residential Sweden | 1,955 | 1,561 | 1,708 |
| JM International | 956 | 893 | 1,032 |
| Total | 6,027 | 4,959 | 5,431 |
PROJECT PROPERTIES, GROUP
| Carrying amount, SEK m | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| Residential units (tenancy rights) | 130 | - | - |
| Properties under development | 548 | 606 | 530 |
| Fully developed commercial properties | 105 | 41 | 131 |
| Total | 783 | 647 | 661 |
DEVELOPMENT PROPERTIES, GROUP
| January - June | April - June July - June | Full Year | ||||
|---|---|---|---|---|---|---|
| Carrying amount, SEK m | 2011 | 2010 | 2011 | 2010 | 2010/11 | 2010 |
| Opening balance at beginning of period | 5,374 | 4,990 | 5,593 | 4,993 | 4,954 | 4,990 |
| New purchases | 662 | 539 | 247 | 290 | 1,778 | 1,655 |
| Transferred to production | -492 | -472 | -325 | -281 | -1,100 | -1,080 |
| Other | 26 | -103 | 55 | -48 | -62 | -191 |
| Closing balance at end of period | 5,570 | 4,954 | 5,570 | 4,954 | 5,570 | 5,374 |
CONDENSED INCOME STATEMENT, PARENT COMPANY
| January - June | Full Year | |||
|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 | |
| Net sales | 4,072 | 3,043 | 6,553 | |
| Production and operating costs | -3,274 | -2,492 | -5,465 | |
| Gross profit | 798 | 551 | 1,088 | |
| Selling and administrative expenses | -267 | -240 | -442 | |
| Gains on the sale of properties | - | 8 | 20 | |
| Operating profit | 531 | 319 | 666 | |
| Financial income and expenses | -8 | -19 | -39 | |
| Profit before appropriations and tax | 523 | 300 | 627 | |
| Appropriations | - | - | -232 | |
| Profit before tax | 523 | 300 | 395 | |
| Tax | -138 | -79 | -93 | |
| Net profit for the period | 385 | 221 | 302 |
CONDENSED BALANCE SHEET, PARENT COMPANY
| SEK m | 2011-06-30 | 2010-06-30 | 2010-12-31 |
|---|---|---|---|
| Assets | |||
| Non-current assets | 1,593 | 1,469 | 1,514 |
| Current assets | 6,645 | 6,790 | 6,929 |
| Total assets | 8,238 | 8,259 | 8,443 |
| Equity and liabilities | |||
| Shareholders' equity | 2,263 | 2,079 | 2,158 |
| Untaxed reserves | 829 | 597 | 829 |
| Provisions | 827 | 817 | 818 |
| Non-current liabilities | 311 | 280 | 344 |
| Current liabilities | 4,008 | 4,486 | 4,294 |
| Total shareholders' equity and liabilities | 8,238 | 8,259 | 8,443 |
| Pledged assets | 169 | 169 | 169 |
| Contingent liabilities | 6,623 | 5,466 | 5,555 |
Investments in properties totaled SEK 349m (263).
Stockholm August 24, 2011 JM AB (publ)
The Board of Directors and President hereby ensure that the six-month report presents a fair overview of the operations, financial position and performance of the parent company and the Group and describes the essential risks and uncertainty factors faced by the parent company and the companies that belong to the Group.
Lars Lundquist Chairman of the Board
Elisabet Annell Board member
Anders Narvinger Board member
Kia Orback Pettersson Board member
Åsa Söderström Jerring Board member
Torbjörn Torell Board member
Jonatan Sundelin Board member appointed by the employees
Johan Wegin Board member appointed by the employees
Johan Skoglund Board member Chief Executive Officer
AUDITOR'S REPORT
To the Board of Directors of JM AB, company reg. no. 556045-2103.
Introduction
We have performed a review of the condensed interim financial statements for JM AB at 30 June 2011 and the six-month period then ended. The Board of Directors and the President are responsible for the preparation and presentation of these interim financial statements in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on the condensed interim financial statements based on our review.
Scope of Review
We have conducted our review in accordance with the Standard on Review Engagements, SÖG 2410, "Review of Interim Financial Statements Performed by the Independent Auditor of the Entity", issued by the Swedish Federation of Authorized Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different purpose and a substantially less scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing practices.
The procedures performed in a review do not enable us to obtain such a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, an opinion based on a review does not constitute the same level of assurance as an opinion based on an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material aspects, for the group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.
Stockholm August 24, 2011 Ernst & Young AB
Ingemar Rindstig Jonas Svensson
Authorized Public Accountant Authorized Public Accountant
JM discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on August 24, 2011.
GROUP
FIVE-YEAR OVERVIEW 1)
| SEK m | 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|
| Income | 9,136 | 9,620 | 12,229 | 12,731 | 12,065 |
| Operating profit | 907 | 646 | 1,083 | 2,301 | 1,881 |
| Profit before tax | 840 | 529 | 1,052 | 2,297 | 1,852 |
| Total assets | 9,893 | 9,887 | 10,055 | 9,916 | 8,406 |
| Cash flow from operating activities | 42 | 1,124 | 101 | 1,826 | 667 |
| Interest-bearing liabilities (+)/receivables (-) | -730 | -189 | 842 | -1,313 | -852 |
| Operating margin (%) | 9.9 | 6.7 | 8.9 | 18.1 | 15.6 |
| Return on equity (%) | 15.7 | 10.6 | 22.9 | 44.5 | 45.4 |
| Equity/assets ratio (%) | 40 | 37 | 32 | 39 | 43 |
| Earnings per share (SEK) | 7.10 | 4.40 | 9.50 | 18.30 | 16.40 |
| Dividend per share (SEK) | 4.50 | 2.50 | 0 | 5.50 | 4.50 |
| Number of available building rights | 27,500 | 27,900 | 31,000 | 31,000 | 29,800 |
| Number of sold residential units | 3,276 | 3,291 | 1,871 | 3,880 | 3,790 |
| Number of housing starts | 3,404 | 2,150 | 1,829 | 4,065 | 4,132 |
1) Financial year 2008 and earlier are not restated according to IFRIC 15.
GROUP
| QUARTERLY OVERVIEW, SEK m | 2011 | 2010 | ||||
|---|---|---|---|---|---|---|
| INCOME STATEMENT | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Income | 2,681 | 2,547 | 3,075 | 1,947 | 2,406 | 1,708 |
| Production and operating costs | -2,162 | -2,090 | -2,532 | -1,618 | -2,030 | -1,428 |
| Gross profit | 519 | 457 | 543 | 329 | 376 | 280 |
| Selling and administrative expenses | -203 | -180 | -172 | -137 | -175 | -165 |
| Gains on the sale of properties Operating profit |
23 339 |
2 279 |
11 382 |
3 195 |
7 208 |
7 122 |
| Financial income and expenses | -10 | -14 | -11 | -20 | -7 | -29 |
| Profit before tax | 329 | 265 | 371 | 175 | 201 | 93 |
| Tax | -94 | -78 | -106 | -51 | -59 | -30 |
| Net profit for the period | 235 | 187 | 265 | 124 | 142 | 63 |
| BALANCE SHEET | 06-30 | 03-31 | 12-31 | 09-30 | 06-30 | 03-31 |
| Assets | ||||||
| Non-current assets | 173 | 176 | 219 | 252 | 256 | 254 |
| Project properties | 783 | 854 | 661 | 670 | 647 | 622 |
| Development properties | 5,570 | 5,593 | 5,374 | 4,882 | 4,954 | 4,993 |
| Participations in tenant-owners associations, etc. | 99 | 115 | 115 | 138 | 166 | 301 |
| Current receivables Cash and cash equivalents |
1,687 1,790 |
1,404 2,024 |
1,437 2,087 |
1,629 1,826 |
1,755 1,747 |
1,710 2,190 |
| Total current assets Total assets |
9,929 10,102 |
9,990 10,166 |
9,674 9,893 |
9,145 9,397 |
9,269 9,525 |
9,816 10,070 |
| Equity and liabilities | ||||||
| Shareholders' equity | 3,990 | 4,099 | 3,923 | 3,661 | 3,577 | 3,657 |
| Non-current interest-bearing liabilities | 247 | 305 | 258 | 258 | 236 | 324 |
| Other non-current liabilities | 198 | 198 | 218 | 124 | 125 | 155 |
| Non-current provisions | 1,867 | 1,852 | 1,833 | 1,742 | 1,717 | 1,692 |
| Total non-current liabilities | 2,312 | 2,355 | 2,309 | 2,124 | 2,078 | 2,171 |
| Current interest-bearing liabilities | 752 | 445 | 514 | 574 | 532 | 1,178 |
| Other current liabilities | 2,942 | 3,159 | 3,036 | 2,913 | 3,211 | 2,936 |
| Current provisions | 106 | 108 | 111 | 125 | 127 | 128 |
| Total current liabilities | 3,800 | 3,712 | 3,661 | 3,612 | 3,870 | 4,242 |
| Total shareholders' equity and liabilities | 10,102 | 10,166 | 9,893 | 9,397 | 9,525 | 10,070 |
| CASH FLOW STATEMENT | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Cash flow from operating activities | -78 | -65 | 305 | -27 | -148 | -88 |
| Cash flow from investing activities | -1 | 41 | 11 | -4 | 0 | 0 |
| Cash flow from financing activities | -158 | -38 | -55 | 112 | -293 | 249 |
| Total cash flow for the period | -237 | -62 | 261 | 81 | -441 | 161 |
| Cash and cash equivalents at end of period | 1,790 | 2,024 | 2,087 | 1,826 | 1,747 | 2,190 |
| INTEREST-BEARING NET LIABILITIES/- RECEIVABLES |
Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Interest-bearing net liabilities(+)/ | ||||||
| receivables(-) at beginning of period | -683 | -730 | -409 | -400 | -115 | -189 |
| Change in interest-bearing net liabilities/ receivables |
492 | 47 | -321 | -9 | -285 | 74 |
| Interest-bearing net liabilities(+)/ | ||||||
| receivables(-) at end of the period | -191 | -683 | -730 | -409 | -400 | -115 |
| DEVELOPMENT PROPERTIES | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Opening balance at beginning of period | 5,593 | 5,374 | 4,882 | 4,954 | 4,993 | 4,990 |
| New purchases | 247 | 415 | 933 | 183 | 290 | 249 |
| Transferred to production | -325 | -167 | -424 | -184 | -281 | -191 |
| Other | 55 | -29 | -17 | -71 | -48 | -55 |
| Closing balance at end of period | 5,570 | 5,593 | 5,374 | 4,882 | 4,954 | 4,993 |
| KEY RATIOS | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Operating margin (%) Debt/equity ratio (x) |
12.6 - |
11.0 - |
12.4 - |
10.0 - |
8.6 - |
7.1 - |
| Equity/assets ratio (%) | 39 | 40 | 40 | 39 | 38 | 36 |
| Earnings per share (SEK) | 2.80 | 2.20 | 3.20 | 1.50 | 1.70 | 0.80 |
| Number of available building rights | 26,500 | 26,300 | 27,500 | 26,700 | 27,400 | 27,600 |
| Number of residential units sold | 821 | 840 | 1,056 | 758 | 705 | 757 |
| Number of housing starts | 943 | 908 | 972 | 811 | 872 | 749 |
BUSINESS SEGMENTS
| QUARTERLY OVERVIEW, SEK m | 2011 | 2010 | ||||||
|---|---|---|---|---|---|---|---|---|
| JM RESIDENTIAL STOCKHOLM | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | ||
| Income Operating profit 1) Operating margin (%) |
1,320 246 18.6 |
1,045 183 17.5 |
1,350 266 19.7 |
819 123 15.0 |
899 133 14.8 |
756 112 14.8 |
||
| Average operating capital | 1,985 | 1,843 | 1,776 | 1,765 | 1,817 | 1,938 | ||
| Return on operating capital (%) 2) | 41.2 | 38.3 | 35.7 | 30.5 | 28.4 | 25.2 | ||
| Operating cash flow | -211 | 101 | 169 | -44 | -291 | 132 | ||
| Carrying amount, development properties | 2,691 | 2,679 | 2,562 | 2,100 | 2,155 | 2,122 | ||
| Number of available building rights | 10,900 | 10,700 | 11,100 | 10,000 | 10,500 | 10,700 | ||
| Number of residential units sold 3) | 369 | 395 | 477 | 274 | 299 | 358 | ||
| Number of housing starts 4) Number of residential units in current production |
439 3,116 |
428 2,931 |
414 2,691 |
399 2,590 |
427 2,505 |
364 2,126 |
||
| 1) Including property sales 3) Including rental apartments 4) Including rental apartments |
- - - |
- - - |
2 104 104 |
- - - |
- 62 62 |
- 45 45 |
||
| JM RESIDENTIAL SWEDEN | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | ||
| Income | 976 | 792 | 819 | 604 | 785 | 541 | ||
| Operating profit 1) | 88 | 68 | 73 | 54 | 58 | 34 | ||
| Operating margin (%) | 9.0 | 8.6 | 8.9 | 8.9 | 7.4 | 6.3 | ||
| Average operating capital | 1,462 | 1,469 | 1,471 | 1,465 | 1,540 | 1,601 | ||
| Return on operating capital (%) 2) | 19.4 | 17.2 | 14.9 | 15.4 | 13.7 | 11.7 | ||
| Operating cash flow Carrying amount, development properties |
83 1,512 |
46 1,539 |
-165 1,497 |
230 1,422 |
125 1,429 |
122 1,518 |
||
| Number of available building rights | 9,000 | 8,900 | 9,600 | 9,800 | 10,200 | 10,100 | ||
| Number of residential units sold | 303 | 320 | 352 | 354 | 276 | 225 | ||
| Number of housing starts | 332 | 327 | 350 | 338 | 321 | 221 | ||
| Number of residential units in current production | 1,955 | 1,953 | 1,708 | 1,767 | 1,561 | 1,371 | ||
| 1) Including property sales | 3 | - | - | - | 0 | - | ||
| JM INTERNATIONAL | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | ||
| Income | 464 | 417 | 457 | 369 | 408 | 336 | ||
| Operating profit | 30 | 24 | 28 | 11 | 8 | 1 | ||
| Operating margin (%) | 6.5 | 5.8 | 6.1 | 3.0 | 2.0 | 0.3 | ||
| Average operating capital Return on operating capital (%) 2) |
1,718 5.4 |
1,774 4.0 |
1,838 2.6 |
1,870 1.6 |
1,895 1.2 |
1,948 -6.3 |
||
| Operating cash flow | -10 | 25 | 184 | 1 | 126 | -75 | ||
| Carrying amount, development properties | 1,306 | 1,315 | 1,255 | 1,252 | 1,263 | 1,245 | ||
| Carrying amount, project properties | 35 | 33 | 34 | 34 | 35 | 35 | ||
| Number of available building rights | 6,600 | 6,700 | 6,800 | 6,900 | 6,700 | 6,800 | ||
| Number of residential units sold | 149 | 125 | 227 | 130 | 130 | 174 | ||
| Number of housing starts | 172 | 153 | 208 | 74 | 124 | 164 | ||
| Number of residential units in current production JM PROPERTY DEVELOPMENT |
956 Q 2 |
1,073 Q 1 |
1,032 Q 4 |
928 Q 3 |
893 Q 2 |
895 Q 1 |
||
| Income | 17 | 16 | 16 | 15 | 15 | 26 | ||
| Operating profit 1) | 13 | 1 | 2 | 3 | 6 | 1 | ||
| Average operating capital | 770 | 739 | 708 | 798 | 845 | 922 | ||
| Return on operating capital (%) 2) | 2.5 | 1.6 | 1.7 | 6.5 | 7.7 | 9.4 | ||
| Operating cash flow | 86 | -71 | -8 | -24 | -60 | -26 | ||
| Carrying amount, development properties | 61 | 60 | 60 | 108 | 107 | 108 | ||
| Carrying amount, project properties 1) Including property sales |
748 | 821 | 625 | 636 | 612 | 587 | ||
| JM PRODUCTION | 20 Q 2 |
2 Q 1 |
9 Q 4 |
3 Q 3 |
7 Q 2 |
7 Q 1 |
||
| Income Operating profit |
480 19 |
347 13 |
405 38 |
311 18 |
431 21 |
349 14 |
||
| Operating margin (%) | 4.0 | 3.7 | 9.4 | 5.8 | 4.9 | 4.0 | ||
| Operating cash flow | -49 | -7 | 64 | -24 | 16 | -20 | ||
| JM OTHER | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | ||
| Income (elimination) | -160 | -126 | -115 | -106 | -121 | -95 | ||
| Operating profit (group-wide expenses) | -9 | -11 | -10 | -5 | -9 | -11 | ||
| RESTATEMENT JM INTERNATIONAL | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | ||
| Income | -416 | 56 | 143 | -65 | -11 | -205 | ||
| Operating profit | -48 | 1 | -15 | -9 | -9 | -29 |
2) Calculated on 12-month rolling profits and average capital.
JM AB (publ) Telephone +46 (0)8 782 87 00 Fax +46 (0)8 782 86 00 Company reg. no. 556045-2103 Website www.jm.se
Mailing address SE-169 82 Stockholm Street address Gustav III:s boulevard 64, Solna
For additional information, please contact:
Financial Calendar
Interim Report January – September 2011 October 28, 2011 Year-end Report 2011 February 10, 2012 Interim Report January – March 2012 April 26, 2012 Annual General Meeting 2012 April 26, 2012
Johan Skoglund, President and CEO [email protected] +46(0)8 782 89 39 Claes Magnus Åkesson, CFO [email protected] +46(0)8 782 89 71
JM is one of the Nordic region's leading developers of housing and residential areas. 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. Our annual sales total approximately SEK 10 billion and the company has about 2,200 employees. JM AB is a public limited company listed on NASDAQ OMX Stockholm, Mid Cap segment.