JM — Interim / Quarterly Report 2012

Apr 26, 2012

JM GROUP JANUARY – MARCH 2012

GOOD PROFIT LEVEL – LOWER SALES RATE

• According to segment reporting revenues increased to SEK 3,188m (2,491) and the operating profit to SEK 337m (278). The operating margin was 10.6 percent (11.2)
• Restated according to IFRIC 15 revenues increased to SEK 2,987m (2,547) and the operating profit to SEK 329m (279)
• Profit before tax improved to SEK 316m (265). Profit after tax improved to SEK 227m (187)
• Return on equity for the past twelve months increased to 24.2 percent (18.5). Earnings per share for the first quarter amounted to SEK 2.70 (2.20)
• Consolidated cash flow including net investment in properties was SEK 2m (-65)
• The number of residential units sold totaled 627 (840) and housing starts totaled 631 (908).

SEK m	2012	January - March 2011	April - March 2011/2012	Full Year 2011
Revenue (segment reporting)	3,188	2,491	12,914	12,217
Operating profit (segment reporting)	337	278	1,603	1,544
Operating margin (segment reporting) (%)	10.6	11.2	12.4	12.6
Revenue 1)	2,987	2,547	12,441	12,001
Operating profit 1)	329	279	1,563	1,513
Profit before tax 1)	316	265	1,514	1,463
Operating margin 1) (%)	11.0	11.0	12.6	12.6
Cash flow from operating activities	2	-65	800	733
Return on equity 1) (%)			24.2	24.5
Equity/assets ratio 1) (%)	42	40		41
Earnings per share 1) (SEK)	2.70	2.20	13.00	12.50
Number of residential units sold	627	840	2,899	3,112
Number of housing starts	631	908	3,352	3,629
1) According to IFRIC 15

The Group applies IFRIC 15 Agreements for the Construction of Real Estate for its income statement and balance sheet. This means that revenues and profit and loss for JM's operations outside of Sweden, JM International, are reported according to the completed contract method. Segment reporting and project management are reported according to IAS 11, percentage of completion method. The description of operations is based on segment reporting.

GROUP

"Demand for JM's residential units continued to be cautious during the first quarter, at the same time as interest in our projects is strong. The sales process is taking longer than usual in conjunction with the uncertain economic situation and the turmoil in the international financial market. However, some improvement was noted during the later portion of the quarter.

Structurally, conditions for our business continue to be favorable, with factors such as large population increases in the markets where we are active playing a role. We are dynamically positioned with financial strength and a very good project portfolio that continues to be improved and renewed, at the same time as our strong balance sheet offers us freedom of action."

Johan Skoglund, President and CEO.

MARKET, SALES AND HOUSING STARTS

Demand for newly built homes in Sweden continued to be cautious during the first quarter. However, some improvement was noted during the later portion of the quarter. Demand continued to be good in Norway. Customers continue to show strong interest in JM's projects, at the same time as the sales process is taking longer in Sweden in the uncertain economic situation. The weak demand in Denmark persists.

The slower sales process has resulted in fewer signed contracts during the first quarter. However, population growth in our main markets, coupled with continued low interest rates, supports demand for housing.

The number of residential units sold in the form of signed contracts was 627 (840). The percentage of sold or reserved homes in relation to current production amounts to 65 percent (79), with an interval of 60-65 percent considered normal. JM Residential Stockholm sold 308 (395) residential units, JM Residential Sweden 176 (320) and JM International 143 (125).

The number of housing starts totaled 631 (908), including 345 (428) in the Stockholm area and 153 (327) elsewhere in Sweden. Housing starts in international operations totaled 133 (153). The number of housing starts in the first quarter is in line with the number of signed contracts. The number of residential units in current production amounts to 5,786 (5,957).

		January - March	April - March	Full Year
Operating profit, SEK m	2012	2011	2011/2012	2011
JM Residential Stockholm	244	183	1,089	1,028
JM Residential Sweden	59	68	292	301
JM International	32	24	167	159
JM Property Development	1	1	15	15
JM Production	14	13	85	84
Group-wide expenses	-13	-11	-45	-43
Total as stated in segment reporting	337	278	1,603	1,544
Restatement JM International 1)	-8	1	-40	-31
Total 2)	329	279	1,563	1,513
1) Effect of restatement on income and profit and loss according to IFRIC 15 in relation to segment reporting.
2) Including property sales	0	2	25	27

REVENUES, OPERATING PROFIT AND OPERATING MARGIN

Consolidated revenues in accordance with segment reporting for the first quarter increased to SEK 3,188m (2,491). Revenues restated according to IFRIC 15 increased to SEK 2,987m (2,547).

Operating profit according to segment reporting increased to SEK 337m (278) and the operating margin decreased to 10.6 percent (11.2). Operating profit restated according to IFRIC 15 increased to SEK 329m (279). The improved profit is due to higher sales and housing starts in 2010/2011.

During the first quarter, gains on the sale of properties were SEK 0m (2). Rental income from JM's project properties totaled SEK 21m (17), with residential units accounting for SEK 2m (0). Net rental income was SEK 6m (6).

BUILDING RIGHTS

JM's available building rights amount to 27,200 (26,300), of which 17,600 (17,600) are recognized in the balance sheet. Capital tied up in building rights (development properties on the balance sheet) for residential units increased to SEK 5,737m (5,533) at the end of the first quarter.

JM acquired development properties for residential units during the first quarter for SEK 278m (415), of which SEK 9m relates to JM Residential Stockholm, SEK 151m to JM Residential Sweden and SEK 118m to JM International.

		January - March	April - March	Full Year
Operating margin (%)	2012	2011	2011/2012	2011
JM Residential Stockholm	17.3	17.5	19.8	20.0
JM Residential Sweden	7.5	8.6	8.7	9.0
JM International	4.8	5.8	6.4	6.8
JM Production	3.1	3.7	4.1	4.2

Residential units in current production	2012-03-31	2011-03-31	2011-12-31
Number of residential units in current production 1)	5,786	5,957	6,401
Percentage sold residential units in current production (%) 2)	56	65	60
Percentage reserved residential units in current production (%)	9	14	8
Percentage sold and reserved residential units in current production (%)	65	79	68

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	2012-03-31	2011-03-31	2011-12-31
Completed production, number of unsold units 1)	97	44	94
- Including the balance sheet item reported as "Participations in tenant-owners associations, etc."	61	39	59

1) After final occupancy according to plan.

FINANCIAL ITEMS

Net financial items improved by SEK 1m compared to the previous year with a slight improvement in financial income.

The total interest-bearing loan was SEK 1,593m (1,342), of which the provision for pensions comprised SEK 618m (591). At the end of the first quarter, the average interest rate for the total interestbearing loan stock including pension liabilities was 3.7 percent (3.6). The average term for fixed-rate loans excluding pension liabilities was 0.3 years (0.2).

The Group's available liquidity was SEK 5,269m (4,824). Aside from cash and cash equivalents of SEK 2,469m (2,024), this includes unutilized overdraft facilities and credit lines totaling SEK 2,800m (2,800), where credit agreements for SEK 2,400m had an average maturity of 1.9 years.

Interest-bearing receivables at the end of the first quarter totaled SEK 876m (683). At the end of the first quarter, non interest-bearing liabilities for implemented property acquisitions amounted to SEK 388m (614). SEK 216m (416) of these liabilities are shortterm.

		January - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Financial income 1)	11	9	47	45
Financial expenses 2)	-24	-23	-96	-95
Financial income and expenses	-13	-14	-49	-50
1) Including revaluation and currency hedging	1	2	7	8
2) Including revaluation and currency hedging	-1	-2	-7	-8

		January - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Interest-bearing net liabilities(+)/ receivables(-) at beginning of the period	-970	-730	-683	-730
Change in interest-bearing net liabilities/receivables	94	47	-193	-240
Interest-bearing net liabilities(+)/ receivables(-) at end of the period	-876	-683	-876	-970

CASH FLOW

Cash flow from operating activities was SEK 2m (-65) during the first quarter. Net investments in development properties resulted in a cash flow of SEK 88m (-100). Increased holdings of unsold residential units on the balance sheet contributed SEK -55m (26). Consolidated cash flow from project properties (sales minus investment) during the first quarter was SEK -65m (-72).

The quarter is negatively impacted by a tax payment of SEK 80m (43) attributable to 2011.

A temporary increase in other working capital offsets the positive effect of the underlying cash flow of the operations.

RISKS AND UNCERTAINTIES

JM's risk and risk management policies are presented in the 2011 Annual Report on pages 26-29. No significant changes have occurred to change these reported risks.

PERSONNEL

The number of employees at the end of the first quarter was 2,341 (2,171). There were 1,113 (1,042) wage-earners and 1,228 (1,129) salaried employees. Current staffing is considered well balanced for the current project 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 - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue	1,414	1,045	5,510	5,141
Operating profit	244	183	1,089	1,028
Operating margin (%)	17.3	17.5	19.8	20.0
Average operating capital			2,349	2,286
Return on operating capital (%)			46.4	45.0
Operating cash flow	268	101	808	641
Carrying amount, development properties	2,753	2,679		2,888
Number of available building rights	11,500	10,700		11,800
Number of residential units sold 1)	308	395	1,314	1,401
Number of housing starts 1)	345	428	1,601	1,684
Number of residential units in current production	3,059	2,931		3,290
Number of employees	805	764		807
1) Of which rental apartments	-	-	77	77

Demand in the existing home market is cautious, but prices increased slightly during the first quarter. The supply of residential units in the existing home market is slightly higher compared to the same period last year. The supply of new homes continues to be low in relation to long-term demand in the Stockholm area. Competition for land appropriate for housing in good locations continues to be intense.

Interest in JM's projects is strong. However, customers continue to display a cautious attitude toward signing contracts early in the process. During the later portion of the period an increased willingness to sign reservation agreements was noted.

Business segment revenue increased to SEK 1,414m (1,045) and the operating profit increased to SEK 244m (183). The operating margin was 17.3 percent (17.5). The improved revenue is a result of the larger number of residential units in current production with a high level of activity.

The cash flow is in balance taking into account normal variation in working capital and changes in development properties.

JM started production during the first quarter on 345 residential units in apartment buildings on Lidingö, in Nacka, Solna, Stockholm and Tyresö.

No building rights were acquired during the first quarter.

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 - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue	783	792	3,346	3,355
Operating profit 1)	59	68	292	301
Operating margin (%)	7.5	8.6	8.7	9.0
Average operating capital			1,485	1,478
Return on operating capital (%)			19.7	20.4
Operating cash flow	45	46	316	317
Carrying amount, development properties	1,499	1,539		1,406
Number of available building rights	9,000	8,900		8,800
Number of residential units sold	176	320	912	1,056
Number of housing starts	153	327	983	1,157
Number of residential units in current production	1,571	1,953		1,973
Number of employees	571	589		602
1) Including property sales	-	-	4	4

Demand in the existing home market continues to be cautious. Prices during the quarter increased slightly in the larger cities but decreased or remained unchanged in the smaller towns in the business segment. The supply of residential units is higher than in the same quarter last year in Skåne, but the supply in other areas is lower.

Interest in JM's projects is strong, but customers are taking longer to make a decision, which has resulted in fewer signed contracts and a fewer number of housing starts.

Business segment revenue totaled SEK 783m (792) and the operating profit decreased to SEK 59m (68). The operating margin fell to 7.5 percent (8.6). This decrease in operating margin is primarily attributable to a lower sales rate in the projects.

Cash flow is burdened by a slight increase in unsold residential units.

JM started production during the first quarter on 153 residential units in apartment buildings in Malmö, Örebro, Västerås and Uppsala. During the first quarter, building rights equivalent to more than 300 residential units were acquired in Malmö and Uppsala.

JM INTERNATIONAL

The JM International business segment develops residential projects in Norway, Denmark, Finland and Belgium. Contracting operations are also conducted to a limited extent in Norway. Revenue recognition for the business segment is reported according to IAS 11, percentage of completion method.

		January - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue	660	417	2,592	2,349
Operating profit	32	24	167	159
Operating margin (%)	4.8	5.8	6.4	6.8
Average operating capital			1,924	1,822
Return on operating capital (%)			8.7	8.7
Operating cash flow	-6	25	-228	-197
Carrying amount, development properties	1,485	1,315		1,462
Carrying amount, project properties	51	33		51
Number of available building rights	6,700	6,700		6,600
Number of residential units sold	143	125	673	655
Number of housing starts	133	153	768	788
Number of residential units in current production	1,156	1,073		1,138
Number of employees	354	260		348

Business segment revenue increased to SEK 660m (417). Operating profit increased to SEK 32m (24). The operating margin fell to 4.8 percent (5.8). The improved revenue is a result of the larger number of residential units in current production and the acquired contracting operation in Norway. The operating margin is weakened by on average a lower margin in acquired, external contracting operations and slightly limited sales in projects with high degrees of completion.

The negative cash flow in the quarter is primarily due to increased working capital.

NORWAY

Demand for residential units, both newly built and in the existing home market, continued to be strong, particularly in several of JM's markets; Oslo, Stavanger and Bergen. Demand is strengthened by a continued increase in population and high demand for manpower.

The prices of residential units continued to rise during the first quarter.

During the first quarter 122 residential units (120) were sold and production began on 133 units (153).

The housing starts consisted of 133 residential units in apartment buildings in Oslo. The number of residential units in current production amounts to 898 (932).

During the first quarter, building rights equivalent to around 290 residential units were acquired in Oslo, Drammen and Stavanger.

Available building rights correspond to 5,400 residential units (4,900).

DENMARK

The turmoil in financial markets is contributing to the continued low level of activity in the housing market in Copenhagen. Banks continued their restrictive lending practices to home loan customers, which offsets the positive effect of lower interest rates.

During the first quarter 3 residential units (5) were sold and production began on 0 units (0).

The number of residential units in current production amounts to 80 (62). No acquisitions were made during the first quarter. Available building rights correspond to 700 residential units (750).

FINLAND

Activity on the housing market in Helsinki remains at a good level. Interest in newly built homes is strong, but customers are cautious and time to closing has increased. Prices in the capital region were unchanged during the first quarter compared to last year.

During the first quarter 6 residential units (0) were sold and production began on 0 units (0).

The number of residential units in current production amounts to 59 (31). No acquisitions were made during the first quarter. Available building rights correspond to 100 residential units (150).

BELGIUM

Activity in the housing market in the Brussels region continues to be stable.

During the first quarter 12 residential units (0) were sold and production began on 0 units (0). The number of residential units in current production amounts to 119 (48). No acquisitions were made during the first quarter.

Available building rights correspond to 500 residential units (900).

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 - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue	21	16	78	73
Operating profit 1)	1	1	15	15
Average operating capital			864	822
Return on operating capital (%)			1.7	1.8
Operating cash flow	-62	-71	-125	-134
Carrying amount, development properties	61	60		60
Carrying amount, project properties	874	821		808
Number of employees	19	18		18
1) Including property sales	0	2	21	23

Business segment revenue increased to SEK 21m (16), of which rental income was SEK 18m (16). Operating profit was SEK 1m (1).

Net rental income for project properties was SEK 5m (6). Gains on property sales amount to SEK 0m (2). Cash flow was burdened by investments totaling SEK 66m (74).

Within the Dalénum area on Lidingö, the occupancy rate in the buildings that will not be demolished is 81 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 220 rental apartments in the area.

Within the Bolinder area in Kallhäll, Järfälla, the occupancy rate is 89 percent in the buildings that will not be demolished.

JM began a senior housing project consisting of 108 apartments in Stora Sköndal, Stockholm. A 15 year lease was signed with Stiftelsen Stora Sköndal with two move-in stages; fall of 2013 and spring of 2014.

Health care accommodation with the Liljeholmen/ Hägersten District Council as the tenant was completed in March 2012.

JM PRODUCTION

The JM Production business segment carries out construction work for external and internal customers in the Greater Stockholm area.

		January - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue 1)	455	347	2,094	1,986
Operating profit	14	13	85	84
Operating margin (%)	3.1	3.7	4.1	4.2
Operating cash flow	17	-7	6	-18
Number of employees	474	417		478
1) Including internally	145	126	706	687

Demand in the contracting market in Stockholm continues to be strong with customers displaying a good willingness to invest. The civil engineering market is at a stable high level, although it continued to have a high level of competition. Orders are good in the business segment, with a large number of projects in current production.

Projects with lower margins had a negative impact on the first quarter. These projects were obtained during a period of high competition.

Business segment revenue was SEK 455m (347) and the operating profit was SEK 14m (13). The operating margin was 3.1 percent (3.7).

The cash flow is in balance.

The business segment received a number of assignments during the quarter, of which the largest was the new production of a senior housing project in Stora Sköndal for JM Property Development.

The largest projects currently underway are two phases of the new E18 motorway between Hjulsta and Kista (Swedish Transport Administration), a collaborative contract for rebuilding a school in Stockholm (SISAB), renovation of and addition to Pir F Västra at Arlanda (Swedavia), streets and conduits (Tyresö and Nacka Municipalities), a renovation project in central Stockholn (Praktikertjänst) and site and track work for expansion of railway tracks in Bromma (Storstockholms Lokaltrafik). A project is underway for the renovation of and addition to schools (Nacka, Sundbyberg and Sollentuna Municipalities), as is the project in Hammarby Sjöstad to build streets and conduits (City of Stockholm).

Projects for JM Residential Stockholm include construction of apartment buildings in Bromma, at Telefonplan and in Älta, as well as site work within the Dalénum area on Lidingö. In addition, the quays in the Liljeholmen area are being extended and completed for use. A senior housing project is being built on Lidingö for JM Property Development.

CONDENSED CONSOLIDATED INCOME STATEMENT

		January - March	April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Revenue	2,987	2,547	12,441	12,001
Production and operating costs	-2,472	-2,090	-10,180	-9,798
Gross profit	515	457	2,261	2,203
Selling and administrative expenses	-186	-180	-723	-717
Gains on the sale of properties	0	2	25	27
Operating profit	329	279	1,563	1,513
Financing income and expenses	-13	-14	-49	-50
Profit before tax	316	265	1,514	1,463
Taxes	-89	-78	-432	-421
Net profit for the period	227	187	1,082	1,042
Total other comprehensive income
Translation differences	2	-11	10	-3
Total comprehensive income for the period	229	176	1,092	1,039
Net profit for the period attributable to: Shareholders of the parent company	227	187	1,082	1,042
Total comprehensive income attributable to:
Shareholders of the parent company	229	176	1,092	1,039
Earnings per share, basic attributable to shareholders of the parent company (SEK) 1)	2.70	2.20	13.00	12.50
Earnings per share, diluted attributable to shareholders of
the parent company (SEK) 1)	2.70	2.20	12.90	12.40
No. of shares outstanding at close of period	83,383,762	83,239,870	83,383,762	83,379,407
Average number of shares, basic	83,383,714	83,239,285	83,341,433	83,305,326
Average number of shares, diluted	84,528,523	84,788,080	84,526,105	84,560,636

1) Profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

SEK m	2012-03-31	2011-03-31	2011-12-31
ASSETS
Non-current assets	312	176	315
Project properties	925	854	859
Development properties	5,798	5,593	5,816
Participations in tenant-owners associations, etc.	168	115	150
Current receivables 1)	1,860	1,404	1,719
Cash and cash equivalents	2,469	2,024	2,437
Total current assets	11,220	9,990	10,981
Total assets	11,532	10,166	11,296
EQUITY AND LIABILITIES 2)
Shareholders' equity	4,827	4,099	4,598
Non-current interest-bearing liabilities	340	305	293
Other non-current liabilities	173	198	172
Non-current provisions	2,149	1,852	2,123
Total non-current liabilities	2,662	2,355	2,588
Current interest-bearing liabilities	635	445	566
Other current liabilities	3,303	3,159	3,440
Current provisions	105	108	104
Total current liabilities	4,043	3,712	4,110
Total shareholders' equity and liabilities	11,532	10,166	11,296
Pledged assets	438	293	422
Contingent liabilities	5,346	4,879	5,915
1) Including receivables from property sales	0	35	0
2) Including liabilities for property acquisition	548	689	470

	January- March		Full Year
SEK m	2012	2011	2011
Opening balance at beginning of the year	4,598	3,923	3,923
Total comprehensive income for the period	229	176	1,039
Dividend	-	-	-375
Conversion of convertible loan	0	-	11
Equity component of convertible debentures	-	-	2
Share-based payments regulated with equity instruments	-	0	-2
Closing balance at end of the period	4,827	4,099	4,598

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	January - March		April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Cash flow from current operations before
change in working capital	191	155	1,226	1,190
Investment in development properties, etc. 1)	-345	-304	-1,913	-1,872
Payment on account for development properties etc. 2)	378	230	1,584	1,436
Investment in project properties	-65	-74	-282	-291
Sale of project properties	-	2	116	118
Change in current liabilities/receivables	-157	-74	69	152
Cash flow from current operations	2	-65	800	733
Acquisition subsidiary	-	-	-136	-136
Other investing activities	0	41	2	43
Cash flow from investment activities	0	41	-134	-93
Loans raised	37	25	459	447
Amortization of debt	-7	-63	-306	-362
Dividend	-	-	-375	-375
Cash flow from financing activities	30	-38	-222	-290
Cash flow for the period	32	-62	444	350
Cash and cash equivalents at end of the period	2,469	2,024	2,469	2,437
1) Including investment in participations in tenant-owners associa tions and freehold residential units	-134	-36	-414	-316
2) Including sale of participations in tenant-owners associations and freehold residential units	79	62	281	264

KEY FIGURES

	January - March		April - March	Full Year
%	2012	2011	2011/2012	2011
Operating margin	11.0	11.0	12.6	12.6
Pre-tax return on capital employed			27.2	27.5
Return on equity			24.2	24.5
Debt/equity ratio (x)	-	-		-
Equity/assets ratio	42	40		41

ACCOUNTING POLICIES

This interim report for the first quarter 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 2011 Annual Report, pages 64-67. 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 2012 are extremely limited in scope and are not assessed to have any effect on JM's financial reports.

	January - March		April - March	Full Year
SEK m	2012	2011	2011/2012	2011
Sweden	2,528	2,074	10,322	9,868
Norway	576	364	2,186	1,974
Denmark	32	29	182	179
Finland	23	12	102	91
Belgium	29	12	122	105
Restatement JM International 1)	-201	56	-473	-216
Total	2,987	2,547	12,441	12,001

REVENUE BY BUSINESS SEGMENT

	January - March		April - March	Full Year
SEK m	2012	2011	2011/2012	2011
JM Residential Stockholm	1,414	1,045	5,510	5,141
JM Residential Sweden	783	792	3,346	3,355
JM International	660	417	2,592	2,349
JM Property Development	21	16	78	73
JM Production	455	347	2,094	1,986
Elimination	-145	-126	-706	-687
Total as stated in segment reporting	3,188	2,491	12,914	12,217
Restatement JM International 1)	-201	56	-473	-216
Total	2,987	2,547	12,441	12,001

OPERATING PROFIT BY BUSINESS SEGMENT

	January - March		April - March	Full Year
SEK m	2012	2011	2011/2012	2011
JM Residential Stockholm	244	183	1,089	1,028
JM Residential Sweden	59	68	292	301
JM International	32	24	167	159
JM Property Development	1	1	15	15
JM Production	14	13	85	84
Group-wide costs	-13	-11	-45	-43
Total as stated in segment reporting	337	278	1,603	1,544
Restatement JM International 1)	-8	1	-40	-31
Total	329	279	1,563	1,513

OPERATING MARGIN BY BUSINESS SEGMENT

	January - March		April - March	Full Year
%	2012	2011	2011/2012	2011
JM Residential Stockholm	17.3	17.5	19.8	20.0
JM Residential Sweden	7.5	8.6	8.7	9.0
JM International	4.8	5.8	6.4	6.8
JM Production	3.1	3.7	4.1	4.2

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT

	April - March	Full Year
SEK m	2011/2012	2011
JM Residential Stockholm	2,349	2,286
JM Residential Sweden	1,485	1,478
JM International	1,924	1,822
JM Property Development	864	822

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT

	April - March	Full Year
%	2011/2012	2011
JM Residential Stockholm	46.4	45.0
JM Residential Sweden	19.7	20.4
JM International	8.7	8.7
JM Property Development	1.7	1.8

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 - March		April - March	Full Year
SEK m	2012	2011	2011/2012	2011
JM Residential Stockholm	268	101	808	641
JM Residential Sweden	45	46	316	317
JM International	-6	25	-228	-197
JM Property Development	-62	-71	-125	-134
JM Production	17	-7	6	-18

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

Carrying amount, SEK m	2012-03-31	2011-03-31	2011-12-31
JM Residential Stockholm	2,753	2,679	2,888
JM Residential Sweden	1,499	1,539	1,406
JM International	1,485	1,315	1,462
JM Property Development	61	60	60
Total	5,798	5,593	5,816

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

Number	2012-03-31	2011-03-31	2011-12-31
JM Residential Stockholm	11,500	10,700	11,800
JM Residential Sweden	9,000	8,900	8,800
JM International	6,700	6,700	6,600
Total	27,200	26,300	27,200
Recognized on the balance sheet (development properties)
JM Residential Stockholm	7,200	6,900	7,500
JM Residential Sweden	5,800	6,100	5,600
JM International	4,600	4,600	4,500
Total	17,600	17,600	17,600

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

	January - March		April - March	Full Year
Number	2012	2011	2011/2012	2011
JM Residential Stockholm	308	395	1,314	1,401
JM Residential Sweden	176	320	912	1,056
JM International	143	125	673	655
Total	627	840	2,899	3,112

HOUSING STARTS BY BUSINESS SEGMENT

	January - March		April - March	Full Year
Number	2012	2011	2011/2012	2011
JM Residential Stockholm	345	428	1,601	1,684
JM Residential Sweden	153	327	983	1,157
JM International	133	153	768	788
Total	631	908	3,352	3,629

RESIDENTIAL UNITS IN CURRENT PRODUCTION

Number	2012-03-31	2011-03-31	2011-12-31
JM Residential Stockholm	3,059	2,931	3,290
JM Residential Sweden	1,571	1,953	1,973
JM International	1,156	1,073	1,138
Total	5,786	5,957	6,401

PROJECT PROPERTIES, GROUP

Carrying amount, SEK m	2012-03-31	2011-03-31	2011-12-31
Residential units (tenancy rights)	130	129	130
Properties under development	738	602	672
Fully developed commercial properties	57	123	57
Total	925	854	859

DEVELOPMENT PROPERTIES, GROUP

	January - March		April - March	Full Year
Carrying amount, SEK m	2012	2011	2011/2012	2011
Opening balance at beginning of period	5,816	5,374	5,593	5,374
New purchases	278	415	1,448	1,585
Transferred to production	-299	-167	-1,245	-1,113
Other	3	-29	2	-30
Closing balance at end of period	5,798	5,593	5,798	5,816

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANY

	January - March	Full Year
SEK m	2012	2011	2011
Net sales	2,220	1,830	8,436
Production and operating costs	-1,817	-1,477	-6,934
Gross profit	403	353	1,502
Selling and administrative expenses	-124	-123	-499
Gains on the sale of properties	0	-	1
Operating profit	279	230	1,004
Financial income and expenses	-2	-3	831
Profit before appropriations and tax	277	227	1,835
Appropriations	-	-	-263
Profit before tax	277	227	1,572
Tax	-73	-60	-200
Net profit for the period	204	167	1,372

CONDENSED BALANCE SHEET, PARENT COMPAN

SEK m	2012-03-31	2011-03-31	2011-12-31
Assets
Non-current assets	1,214	1,519	1,215
Current assets	9,248	7,268	9,082
Total assets	10,462	8,787	10,297
Equity and liabilities
Shareholders' equity	3,569	2,418	3,365
Untaxed reserves	1,092	829	1,092
Provisions	922	813	912
Non-current liabilities	280	344	280
Current liabilities	4,599	4,383	4,648
Total shareholders' equity and liabilities	10,462	8,787	10,297
Pledged assets	169	168	169
Contingent liabilities	6,203	5,923	6,806

Investments in properties amounted to SEK 204m (255).

Stockholm April 26, 2012 JM AB (publ)

Johan Skoglund President

The company's auditors did not review this interim report.

GROUP

FIVE-YEAR OVERVIEW 1)

SEK m	2011	2010	2009	2008	2007
Revenue	12,001	9,136	9,620	12,229	12,731
Operating profit	1,513	907	646	1,083	2,301
Profit before tax	1,463	840	529	1,052	2,297
Total assets	11,296	9,893	9,887	10,055	9,916
Cash flow from operating activities	733	42	1,124	101	1,826
Interest-bearing liabilities (+)/receivables (-)	-970	-730	-189	842	-1,313
Operating margin (%)	12.6	9.9	6.7	8.9	18.1
Return on equity (%)	24.5	15.7	10.6	22.9	44.5
Equity/assets ratio (%)	41	40	37	32	39
Earnings per share (SEK)	12.50	7.10	4.40	9.50	18.30
Dividend per share (SEK)	6.50 2)	4.50	2.50	0	5.50
Number of available building rights	27,200	27,500	27,900	31,000	31,000
Number of sold residential units	3,112	3,276	3,291	1,871	3,880
Number of housing starts	3,629	3,404	2,150	1,829	4,065
Number of residential units in current production	6,401	5,431	3,744	5,118	6,844

1) Financial year 2008 and earlier are not restated according to IFRIC 15. 2) The Boards proposal.

GROUP

QUARTERLY OVERVIEW, SEK m	2012	2011
INCOME STATEMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	2,987	3,702	3,071	2,681	2,547
Production and operating costs	-2,472	-3,025	-2,521	-2,162	-2,090
Gross profit Selling and administrative expenses	515 -186	677 -179	550 -155	519 -203	457 -180
Gains on the sale of properties	0	2	0	23	2
Operating profit	329	500	395	339	279
Financial income and expenses	-13	-11	-15	-10	-14
Profit before tax	316	489	380	329	265
Taxes	-89	-142	-107	-94	-78
Net profit for the period	227	347	273	235	187
BALANCE SHEET	03-31	12-31	09-30	06-30	03-31
ASSETS
Non-current assets Project properties	312 925	315 859	334 796	173 783	176 854
Development properties	5,798	5,816	5,814	5,570	5,593
Participations in tenant-owners associations, etc.	168	150	115	99	115
Current receivables	1,860	1,719	1,731	1,687	1,404
Cash and cash equivalents	2,469	2,437	1,917	1,790	2,024
Total current assets Total assets	11,220 11,532	10,981 11,296	10,373 10,707	9,929 10,102	9,990 10,166
EQUITY AND LIABILITIES
Shareholders' equity	4,827	4,598	4,276	3,990	4,099
Non-current interest-bearing liabilities	340	293	287	247	305
Other non-current liabilities	173	172	205	198	198
Non-current provisions	2,149	2,123	1,918	1,867	1,852
Total non-current liabilities	2,662	2,588	2,410	2,312	2,355
Current interest-bearing liabilities	635	566	640	752	445
Other current liabilities Current provisions	3,303 105	3,440 104	3,272 109	2,942 106	3,159 108
Total current liabilities	4,043	4,110	4,021	3,800	3,712
Total shareholders' equity and liabilities	11,532	11,296	10,707	10,102	10,166
CASH FLOW STATEMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Cash flow from operating activities	2	560	316	-78	-65
Cash flow from investing activities	0	12	-145	-1	41
Cash flow from financing activities	30	-50	-44	-158	-38
Total cash flow for the period	32	522	127	-237	-62
Cash and cash equivalents at end of period	2,469	2,437	1,917	1,790	2,024
INTEREST-BEARING NET LIABILITIES/RECEIVABLES	Q 1	Q 4	Q 3	Q 2	Q 1
Interest-bearing net liabilities(+)/ receivables(-) at beginning of period	-970	-388	-191	-683	-730
Change in interest-bearing net liabilities/receivables	94	-582	-197	492	47
Interest-bearing net liabilities(+)/ receivables(-) at end of the period
	-876	-970	-388	-191	-683
DEVELOPMENT PROPERTIES	Q 1	Q 4	Q 3	Q 2	Q 1
Opening balance at beginning of period	5,816	5,814	5,570	5,593	5,374
New purchases Transferred to production	278 -299	324 -280	599 -341	247 -325	415 -167
Other	3	-42	-14	55	-29
Closing balance at end of period	5,798	5,816	5,814	5,570	5,593
KEY RATIOS	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin (%)	11.0	13.5	12.9	12.6	11.0
Debt/equity ratio (x) Equity/assets ratio (%)	- 42	- 41	- 40	- 39	- 40
Earnings per share (SEK)	2.70	4.20	3.30	2.80	2.20
Number of available building rights	27,200	27,200	28,000	26,500	26,300
Number of residential units sold	627	746	705	821	840
Number of housing starts Number of residential units in current production	631 5,786	773 6,401	1,005 6,439	943 6,027	908 5,957

BUSINESS SEGMENTS

QUARTERLY OVERVIEW, SEK m	2012	2011
JM RESIDENTIAL STOCKHOLM	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,414	1,579	1,197	1,320	1,045
Operating profit	244	341	258	246	183
Operating margin (%)	17.3	21.6	21.6	18.6	17.5
Average operating capital Return on operating capital (%) 2)	2,349	2,286	2,153	1,985	1,843
Operating cash flow	46.4 268	45.0 356	44.3 395	41.2 -211	38.3 101
Carrying amount, development properties	2,753	2,888	2,813	2,691	2,679
Number of available building rights	11,500	11,800	12,100	10,900	10,700
Number of residential units sold 1)	308	329	308	369	395
Number of housing starts 1)	345	349	468	439	428
Number of residential units in current production 1) Including rental apartments	3,059 -	3,290 -	3,353 77	3,116 -	2,931 -
JM RESIDENTIAL SWEDEN	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	783	862	725	976	792
Operating profit 1)	59	76	69	88	68
Operating margin (%)	7.5	8.8	9.5	9.0	8.6
Average operating capital Return on operating capital (%) 2)	1,485 19.7	1,478 20.4	1,443 20.7	1,462 19.4	1,469 17.2
Operating cash flow	45	-8	196	83	46
Carrying amount, development properties	1,499	1,406	1,460	1,512	1,539
Number of available building rights	9,000	8,800	8,800	9,000	8,900
Number of residential units sold	176	204	229	303	320
Number of housing starts	153	201	297	332	327
Number of residential units in current production 1) Including property sales	1,571 -	1,973 1	2,009 0	1,955 3	1,953 -
JM INTERNATIONAL	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	660	799	669	464	417
Operating profit Operating margin (%)	32 4.8	67 8.4	38 5.7	30 6.5	24 5.8
Average operating capital	1,924	1,822	1,764	1,718	1,774
Return on operating capital (%) 2)	8.7	8.7	6.8	5.4	4.0
Operating cash flow	-6	76	-288	-10	25
Carrying amount, development properties	1,485	1,462	1,481	1,306	1,315
Carrying amount, project properties	51	51	33	35	33
Number of available building rights	6,700	6,600	7,100	6,600	6,700
Number of residential units sold Number of housing starts	143 133	213 223	168 240	149 172	125 153
Number of residential units in current production	1,156	1,138	1,077	956	1,073
JM PROPERTY DEVELOPMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	21	21	19	17	16
Operating profit 1)	1	-1	2	13	1
Average operating capital	864	822	797	770	739
Return on operating capital (%) 2)	1,7	1,8	2,3	2,5	1,6
Operating cash flow	-62	-18	-131	86	-71
Carrying amount, development properties Carrying amount, project properties	61 874	60 808	60 763	61 748	60 821
1) Including property sales	0	1	-	20	2
JM PRODUCTION	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	455	669	490	480	347
Operating profit	14	28	24	19	13
Operating margin (%)	3,1	4,2	4,9	4,0	3,7
Operating cash flow JM OTHER	17 Q 1	28 Q 4	10 Q 3	-49 Q 2	-7 Q 1
Revenue (elimination)	-145	-260	-141	-160	-126
Operating profit (group-wide expenses)	-13	-14	-9	-9	-11
RESTATEMENT JM INTERNATIONAL	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue Operating profit	-201 -8	32 3	112 13	-416 -48	56 1

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

JM IN BRIEF

AFFÄRSIDÉ

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.

OPERATIONS

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 long-term quality and environmental considerations in all its operations.

Annual sales total approximately SEK 12 billion and the company has about 2,300 employees.

JM AB is a public limited company listed on NASDAQ OMX Stockholm, Mid Cap segment.

FINANCIAL TARGETS AND DIVIDENDS POLICY

The operating margin should amount to 10 percent, including gains from property sales of 1–2 percent. The visible equity ratio should amount to 35 percent over a business cycle.

Over time, the dividend should reflect the earnings trend in total operating activities and over a business cycle on average 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.

DISCLOSURES

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 April 26, 2012.

FOR MORE INFORMATION PLEASE CONTACT:

Johan Skoglund, President and CEO Tel. +46 8 782 89 39 johan.skoglund@jm.se

Claes Magnus Åkesson, CFO Tel. +46 8 782 89 71 claes-magnus.akesson@jm.se

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

August 23, 2012 Interim report January-June

October 26, 2012 Interim report January-September

February 12, 2013 Year-end Report 2012

April 25, 2013 Interim report January-March 2013 and 2013 Annual General Meeting

PRESS RELEASES, Q1

2012-03-26 Notice of JM's Annual General Meeting on April 26, 2012

2012-03-01 New sheltered housing in Sköndal, Stockholm

2012-02-10 Year-end Report 2011

2012-02-01 JM AB Nomination Committee proposals to the 2012 Annual General Meeting for chairman and directors

2012-01-24 JM acquires property in Uppsala

JM's annual reports are available at www.jm.se/investors

JM AB (publ) Mailing address SE-169 82 Stockholm Telephone +46 (0)8 782 87 00 Fax +46 (0)8 782 86 00 Company reg. no. 556045-2103 Website www.jm.se

Street address Gustav III:s boulevard 64, Solna