JM — Interim / Quarterly Report 2016

Oct 26, 2016

Interim report 3/ 2016

JM GROUP JANUARY–SEPTEMBER 2016

CONTINUED STABLE DEMAND AND HIGH LEVEL OF HOUSING STARTS

• According to segment reporting revenue increased to SEK 11,456m (10,489) and operating profit increased to SEK 1,414m (1,144). The operating margin increased to 12.3 percent (10.9)
• Restated in accordance with IFRIC 15, revenue increased to SEK 10,997m (10,195) and operating profit increased to SEK 1,334m (1,088). This restatement is attributable to JM International and had a negative effect on earnings of SEK –80m (–56).
• Profit before tax increased to SEK 1,299m (1,033). Profit after tax increased to SEK 1,002m (775)
• Return on equity for the past twelve months amounted to 29.5 percent (27.6). Earnings per share during the nine-month period increased to SEK 13.70 (10.40)
• Consolidated cash flow including net investment in properties was SEK 1,589m (193)
• The number of sold residential units increased to 2,918 (2,831) and housing starts increased to 2,830 (2,665)

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue (segment reporting)	11,456	10,489	3,729	3,256	15,414	14,447
Operating profit (segment reporting)	1,414	1,144	521	373	1,860	1,590
Operating margin (segment reporting), %	12.3	10.9	14.0	11.5	12.1	11.0
Revenue	10,997	10,195	3,661	3,410	14,741	13,939
Operating profit	1,334	1,088	510	366	1,745	1,499
Profit before tax	1,299	1,033	498	342	1,693	1,427
Operating margin, %	12.1	10.7	13.9	10.7	11.8	10.8
Cash flow from operating activities	1,589	193	102	–193	1,166	–230
Return on equity, %					29.5	23.7
Equity/assets ratio, %	38	36	38	36		38
Earnings per share, SEK	13.70	10.40	5.30	3.30	17.90	14.50
Number of residential units sold	2,918	2,831	960	891	3,857	3,770
Number of housing starts	2,830	2,665	1,058	888	3,896	3,731
Number of residential units in current production	7,793	7,073				7,212

The Group applies IFRIC 15 Agreements for the Construction of Real Estate to its income statement and balance sheet. This means that revenue 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.

For definitions of key financial figures, please refer to the Definitions Key Financial Figures document on www.jm.se/investors.

GROUP

"Demand for JM's residential units has continued to be stable in our main markets during the third quarter. The stable demand supports a continued high level of housing starts.

The housing operations in Stockholm are showing a positive development with good profitability and continued strong interest in our projects. We are reporting an improvement in terms of both revenue and profit in the rest of Sweden due to good demand and price increases for our residential units. Even in Norway and Finland the operations are developing at a stable rate with continued good demand in Norway and some improvement in Finland.

Structurally, conditions for our business are favorable, including large population increases in the markets where we are active. We are well positioned with a good project portfolio that we continue to improve for housing for the future, 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 and Norway has been stable during the first nine months of the year. Interest in JM's projects is strong. 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 increased to 2,918 (2,831) 1). The percentage of sold or reserved homes in relation to current production amounts to 82 percent (89), with an interval of 60-65 percent considered normal. JM Residential Stockholm sold 1,153 residential units (1,230), JM Residential Sweden sold 975 (951), JM International sold 790 (650) and JM Property Development sold 0 (0).

The number of housing starts increased to 2,830 (2,665) 2). JM Residential Stockholm started production on 1,111 residential units (1,197), JM Residential Sweden on 978 (860), JM International on 741 (554) and JM Property Development on 0 (54).

Planning processes continue to be an important criterion for the rate of housing starts.

The number of residential units in current production increased to 7,793 (7,073), of which 338 are rental units and residential care units (484).

1) Of which 0 rental units and residential care units (0). 2) Of which 0 rental units and residential care units (54).

	January–September			July–September	Oct–Sept	Full-year
Operating profit (SEK m)	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	908	790	308	259	1,196	1,078
JM Residential Sweden	354	206	135	68	456	308
JM International	137	120	63	40	183	166
JM Property Development	12	15	7	0	35	38
JM Construction	33	45	12	13	33	45
Group-wide expenses	–30	–32	–4	–7	–43	–45
Total (segment reporting)	1,414	1,144	521	373	1,860	1,590
Restatement JM International 1)	–80	–56	–11	–7	–115	–91
Total	1,334	1,088	510	366	1,745	1,499
Of which property sales	15	55	37	21	16	56

1) Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting.

1) According to segment reporting

REVENUE, OPERATING PROFIT AND OPERATING MARGIN

Consolidated revenue in accordance with segment reporting for the nine-month period increased to SEK 11,456m (10,489). Revenue restated according to IFRIC 15 increased to SEK 10,997m (10,195).

Operating profit according to segment reporting increased to SEK 1,414m (1,144) and the operating margin increased to 12.3 percent (10.9). Operating profit restated according to IFRIC 15 increased to SEK 1,334m (1,088). This restatement is attributable to JM International and had a negative effect on earnings of SEK –80m (–56).

During the nine-month period properties were sold for SEK 84m (433) with gains of SEK 15m (55).

Rental income from JM's project properties was SEK 17m (16). Net rental income was SEK 3m (5).

	January–September			July–September	Oct–Sept	Full-year
Operating margin, %	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	17.7	17.0	18.1	17.0	17.7	17.2
JM Residential Sweden	12.5	9.1	16.3	10.1	11.9	9.4
JM International	5.4	5.5	7.2	6.1	5.4	5.4
JM Construction	2.7	2.8	3.0	2.6	2.0	2.2

Residential units in current production	9/30/2016	9/30/2015	12/31/2015
Number of residential units in current production 1) 2)	7,793	7,073	7,212
Percentage of sold residential units in current production, % 3)	67	66	64
Percentage of reserved residential units in current production, %	15	23	22
Percentage of sold and reserved residential units in current production, %	82	89	86
1) Of which rental units and residential care units in current production in JM Property Development – are not included in the percentage of sold and reserved residential units
in current production.	338	484	338
Includes residential units in projects where costs incurred are only reported as project properties under construction	284	338	284

2) Beginning with production startup through final occupancy according to plan.

3) Percentage of sold residential units expressed as binding contract with the end

Completed production, unsold units	9/30/2016	9/30/2015	12/31/2015
Completed production, number of unsold units 1)	81	106	98
- Of which in the balance sheet reported as "Participations in tenant-owner associations, etc."	62	68	71

1) After final occupancy according to plan.

customer.

RESIDENTIAL BUILDING RIGHTS

The number of available building rights amounted to 30,900 (28,700), of which 17,000 (16,700) are recognized in the balance sheet. Capital tied up in building rights (development properties on the balance sheet) for residential units amounted to SEK 6,468m (7,108) at the end of the first nine months.

JM acquired development properties for residential units during the nine-month period for SEK 937m (2,148), of which SEK 531m relates to JM Residential Stockholm, SEK 165m to JM Residential Sweden and SEK 241m to JM International.

Percentage sold/reserved, Group (%) Normal level sold/reserved (60-65%) 1) Including rental units and residential care units in JM Property Development – not included in percentage of sold/reserved

FINANCIAL ITEMS

Net financial items improved by SEK 20m compared to the previous year, which is primarily attributable to lower interest-bearing loans and slightly lower average interest rates.

The total interest-bearing loan stock was SEK 1,918m (2,153), of which the pensions liability comprised SEK 1,299m (1,133). At the end of the nine-month period the average interest rate for the total loan stock including pension liabilities was 2.6 percent (2.7). The average term for fixed-rate loans excluding the pension liability was 0.4 years (0.4).

Consolidated available liquidity was SEK 3,977m (4,357). Aside from cash and cash equivalents of SEK 1,177m (1,557), 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 1.7 years (1.9).

Interest-bearing net liabilities at the end of the ninemonth period totaled SEK 737m (596). Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 513m (1,400). Of these liabilities SEK 344m (1,251) were short-term.

The valuation of financial assets and liabilities shows that there is no material difference between the carrying amount and the fair value.

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Financial income 1)	15	9	3	0	17	11
Financial expenses 2)	–50	–64	–15	–24	–69	–83
Financial income and expenses	–35	–55	–12	–24	–52	–72
1) Of which revaluation and currency hedging	0	2	0	1	0	2
2) Of which revaluation and currency hedging	0	–2	0	–1	0	–2

	January–September		July–September		Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Interest-bearing net liabilities(+)/receivables(–) at beginning of the period	1,198	–337	656	295	596	–337
Change in interest-bearing net liabilities/receivables	–461	933	81	301	141	1,535
Interest-bearing net liabilities(+)/receivables(–) at end of the period	737	596	737	596	737	1,198

CASH FLOW

Cash flow from operating activities was SEK 1,589m (193) during the nine-month period. Net investments in development properties resulted in a positive cash flow of SEK 567m (–298). Holdings of repurchased residential units resulted in a positive cash flow of SEK 18m (60). The Group's cash flow from project properties (sales minus investment) during the nine-month period totaled SEK –169m (–114).

RISKS AND UNCERTAINTIES

JM's risk and risk management policies are presented in the 2015 annual report on pages 29-32. No significant changes have occurred to change these reported risks.

BUY-BACK AND HOLDINGS OF OWN SHARES

At the end of August, the Annual General Meeting resolution on the reduction in share capital by 2,202,624 shares held by the company was taken into effect. During the third quarter of 2016, 567,955 shares were bought back for a total of SEK 125m. Holdings of own shares subsequently total 1,110,610.

The number of outstanding shares, excluding holdings of own shares, at September 30, 2016, totals 71,929,390.

PERSONNEL

The number of employees at the end of the nine-month period was 2,399 (2,303). The number of wage-earners was 1,009 (1,008) and the number of salaried employees was 1,390 (1,295). Current staffing is considered well balanced for the current project volume and some adjustments are made on a regular basis. Demand on the labor market is strong for qualified project development skills.

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–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue	5,144	4,642	1,699	1,522	6,775	6,273
Operating profit 1)	908	790	308	259	1,196	1,078
Operating margin, %	17.7	17.0	18.1	17.0	17.7	17.2
Average operating capital					4,382	4,134
Return on operating capital, %					27.3	26.1
Operating cash flow	1,191	296	180	457	551	–344
Carrying amount, development properties	4,117	4,536				4,517
Number of available building rights	12,400	11,900				12,400
Number of residential units sold	1,153	1,230	353	375	1,523	1,600
Number of housing starts	1,111	1,197	456	444	1,581	1,667
Number of residential units in current production	3,564	3,354				3,627
Number of employees	861	857				854
1) Of which property sales	-	-	-	-	0	0

Average prices on the existing home market did not change during the third quarter, and the supply of residential units has been relatively low with a slight seasonal increase at the end of the quarter. The turnover rate remained the same. The supply of new residential units continues to be low in relation to long-term demand in the Stockholm area.

Competition for well-situated land for residential units continues to be tough, and the prices for building rights continue to be at a level that requires JM to be very selective when acquiring land.

Interest in JM's projects is strong. The customers' tendency to sign a contract early in the process is above a normal level.

Revenue in the business segment increased to SEK 5,144m (4,642), which confirms the continued stable development for the operations. Operating profit increased to SEK 908m (790). The operating margin increased to 17.7 percent (17.0).

Cash flow during the nine-month period is in balance taking into consideration the decrease in development properties.

In total, production was started in the third quarter on 456 residential units in apartment buildings in Täby, Solna and Stockholm.

During the third quarter JM purchased building rights in Stockholm corresponding to 260 residential units.

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–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue	2,823	2,259	830	671	3,842	3,278
Operating profit 1)	354	206	135	68	456	308
Operating margin, %	12.5	9.1	16.3	10.1	11.9	9.4
Average operating capital					1,150	1,289
Return on operating capital, %					39.7	23.9
Operating cash flow	540	341	58	–72	732	533
Carrying amount, development properties	1,096	1,251				1,269
Number of available building rights	9,400	9,100				9,900
Number of residential units sold	975	951	311	326	1,297	1,273
Number of housing starts	978	860	331	317	1,346	1,228
Number of residential units in current production	2,300	1,979				1,944
Number of employees	584	526				539
1) Of which property sales	37	0	37	-	37	0

Average prices on the existing home market rose slightly or remained the same in most markets within the business segment during the third quarter. The exceptions were in Västerås and Örebro, where prices decreased during the quarter. The supply of residential units during the quarter was relatively low with a slight seasonal increase at the end of the quarter. The turnover rate remained the same.

Competition for land for residential units is very tough in Gothenburg and Uppsala.

Interest in JM's projects is strong. The customers' tendency to sign a contract early in the process is above a normal level.

Business segment revenue increased to SEK 2,823m (2,259) and operating profit increased to SEK 354m (206), including gains from the sale of property in Örebro totaling SEK 37m (0). The operating margin increased to 12.5 percent (9.1).

Cash flow during the nine-month period was strengthened primarily due to a decrease in development properties.

JM started production during the third quarter on 331 residential units in apartment buildings in Malmö, Gothenburg, Uppsala, Örebro, Kungsbacka, Lomma and Helsingborg.

During the third quarter JM purchased building rights in Gothenburg corresponding to 120 residential units.

JM INTERNATIONAL

The JM International business segment develops residential projects primarily in Norway and Finland. 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–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue	2,541	2,186	874	658	3,414	3,059
- of which JM Norway	2,241	1,903	754	572	3,002	2,664
Operating profit 1)	137	120	63	40	183	166
- of which JM Norway	158	132	62	49	207	181
Operating margin, %	5.4	5.5	7.2	6.1	5.4	5.4
- of which JM Norway	7.1	6.9	8.2	8.6	6.9	6.8
Average operating capital					1,993	2,145
Return on operating capital, %					9.2	7.7
Operating cash flow	267	243	71	56	458	434
Carrying amount, development properties	1,255	1,321				1,202
Carrying amount, project properties	38	32				31
Number of available building rights	7,900	7,200				8,200
Number of residential units sold	790	650	296	190	983	843
Number of housing starts	741	554	271	127	969	782
Number of residential units in current production	1,591	1,256				1,303
Number of employees	408	390				395
1) Of which property sales	–23	40	-	20	–24	39

Business segment revenue increased to SEK 2,541m (2,186) and operating profit increased to SEK 137m (120). The operating margin was 5.4 percent (5.5). The profit includes SEK –23m from the sale of a property in Denmark. Excluding this sale, the operating margin is 6.3 percent.

A decrease in working capital had a positive impact on cash flow for the nine-month period.

NORWAY

Demand for both newly built homes and homes on the existing home market is high, particularly in the Oslo region. Prices on the existing home market increased during the third quarter, and prices in Oslo continued to demonstrate strong growth.

JM Norway's revenue increased to SEK 2,241m (1,903) and operating profit increased to SEK 158m (132). The operating margin was 7.1 percent (6.9).

During the third quarter 232 residential units (161) were sold and production began on 219 units (127). Housing starts during the third quarter consisted of 204 residential units in apartment buildings and 15 single-family homes. The number of residential units in current production amounts to 1,252 (1,070).

During the third quarter, JM purchased building rights corresponding to 143 residential units in Oslo and Drammen. Available building rights correspond to 5,800 residential units (5,400).

FINLAND

The level of activity on the housing market in Helsinki continues to be low but is showing signs of weak improvement. Customers are still cautious and time to closing is long. The price level in the capital region increased slightly during the nine-month period.

During the third quarter 61 residential units (16) were sold and production began on 52 units (0). The number of residential units in current production amounts to 277 (104).

No building rights were acquired during the third quarter. Available building rights correspond to 1,900 residential units (1,600).

OTHER INTERNATIONAL MARKETS

DENMARK

In 2015, JM completed the final phase of a single-family home project in Humlebäck and since then does not have any production in Denmark.

The Dagelökke Ege property was sold during the second quarter of 2016, thereby concluding the liquidation of JM's building rights portfolio in Denmark.

BELGIUM

During 2015, JM closed its office in Brussels and no longer has any staff there. Remaining operations are run by external resources.

During the third quarter 3 residential units (5) were sold and production began on 0 units (0). The number of residential units in current production amounts to 62 (62).

No building rights were purchased. Available building rights correspond to 200 residential units (200).

JM PROPERTY DEVELOPMENT

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

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue	96	106	34	14	196	206
Operating profit 1)	12	15	7	0	35	38
Average operating capital					455	326
Return on operating capital, %					7.7	11.7
Operating cash flow	–52	–94	–56	–55	–164	–206
Carrying amount, development properties	35	25				35
Carrying amount, project properties	516	294				347
Number of available building rights 2)	1,200	500				600
Number of residential units sold 2)	-	-	-	-	54	54
Number of housing starts 2)	-	54	-	-	-	54
Number of residential units in current production 2)	338	484				338
Number of employees	27	28				29
1) Of which property sales	1	15	-	1	3	17

2) Refers to rental units and residential care units.

Business segment revenue decreased to SEK 96m (106), including construction revenue of SEK 80m (91) and rental income of SEK 16m (15). Operating profit was SEK 12m (15).

Net rental income for project properties amounted to SEK 2m (4). Profit from construction contracts was SEK 26m (10) and gains from property sales were SEK 1m (15).

Cash flow during the nine-month period is negative due to ongoing investments in project properties.

Within the Dalénum area on Lidingö, the occupancy rate in the remaining commercial buildings that will not be demolished is 88 percent. Within the Bolinder area in Kallhäll, Järfälla, the occupancy rate is 85 percent in the buildings that will not be demolished.

Production is underway on JM's own balance sheet on a rental unit project in the Dalénum area consisting of 97 residential units, and completion is planned for 2016.

Production is underway on JM's own balance sheet on the rental unit project Tjärtunnan in Stureby consisting of 187 residential units, and completion is planned for 2018.

Production is underway on the Vinfatet senior housing project in Sollentuna for an external orderer consisting of 54 residential units, and completion is planned for 2016.

JM CONSTRUCTION

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

SEK m	January–September 2016	2015	2016	July–September 2015	Oct–Sept 2015/2016	Full-year 2015
Revenue 1)	1,211	1,604	404	492	1,691	2,084
Operating profit	33	45	12	13	33	45
Operating margin, %	2.7	2.8	3.0	2.6	2.0	2.2
Operating cash flow	–15	31	25	–11	–80	–34
Carrying amount, development properties	44	56				44
Number of employees	393	382				380
1) Of which internal	359	308	112	101	504	453

Demand in the contracting market in Stockholm is at a good level with customers displaying a good willingness to invest. Both the building and civil engineering markets are stable, although there is tough competition for the assignments.

Orders are good in the business segment, with a large number of projects in current production.

The business segment's revenue decreased to SEK 1,211m (1,604) and operating profit decreased to SEK 33m (45). The operating margin was 2.7 percent (2.8).

The decrease in revenue is attributable to the assignment for the new production of a biofuel cogeneration plant in Stockholm for Fortum Värme, now being completed.

Cash flow during the nine-month period is limited by a delayed payment from an external orderer that is under dispute.

The business segment received a number of assignments during the third quarter, for example as one of five contractors for a framework agreement governing a large development project at the Arlanda and Bromma airports.

The largest ongoing assignments are a new operational area at Arlanda Airport (Swedavia), renovation of quays in Norrtälje Harbor, development projects for future housing production (Norrtälje Municipality), new production of an office building in Danderyd (Skandia Fastigheter), new production of apartment buildings in Gröndal (Aros Bostad), renovation of a school in Bromma (Skolfastigheter i Stockholm AB), development work for housing production in Hammarby Sjöstad and the renovation of Slussen (City of Stockholm).

CONDENSED CONSOLIDATED INCOME STATEMENT

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Revenue	10,997	10,195	3,661	3,410	14,741	13,939
Production and operating costs	–8,995	–8,538	–2,988	–2,886	–12,087	–11,630
Gross profit	2,002	1,657	673	524	2,654	2,309
Selling and administrative expenses	–683	–624	–200	–179	–925	–866
Gains/losses on the sale of property	15	55	37	21	16	56
Operating profit	1,334	1,088	510	366	1,745	1,499
Financial income and expenses	–35	–55	–12	–24	–52	–72
Profit before tax	1,299	1,033	498	342	1,693	1,427
Taxes	–297	–258	–113	–94	–381	–342
Profit for the period	1,002	775	385	248	1,312	1,085
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign
operations	101	–50	56	–45	64	–87
Items that will not be reclassified as income
Restatement of defined-benefit pensions	–170	–65	–70	-	–154	–49
Tax attributable to other comprehensive income	37	14	15	-	34	11
Comprehensive income for the period	970	674	386	203	1,256	960
Net profit for the period is attributable to shareholders of the Parent
Company	1,002	775	385	248	1,312	1,085
Comprehensive income for the period is attributable to shareholders of the Parent Company	970	674	386	203	1,256	960
Earnings per share 1), basic, attributable to shareholders of
the Parent Company, SEK	13.70	10.40	5.30	3.30	17.90	14.50
Earnings per share 1), diluted, attributable to shareholders of
the Parent Company, SEK	13.70	10.30	5.30	3.30	17.80	14.50
Number of outstanding shares at end of period	71,929,390	74,082,167	71,929,390	74,082,167	71,929,390	73,594,000
Average number of shares, basic	73,161,249	74,852,375	72,251,041	74,375,551	73,460,344	74,601,637
Average number of shares, diluted	73,402,428	75,120,535	72,498,331	74,630,141	73,702,968	74,846,482
1) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

SEK m	9/30/2016	9/30/2015	12/31/2015
ASSETS
Non-current assets	233	217	209
Project properties	554	326	378
Development properties	6,547	7,189	7,067
Participations in tenant-owners associations, etc.	240	229	235
Current receivables 1)	3,308	2,646	2,808
Cash and cash equivalents	1,177	1,557	1,275
Total current assets	11,826	11,947	11,763
Total assets	12,059	12,164	11,972
EQUITY AND LIABILITIES 2)
Shareholders' equity	4,527	4,358	4,521
Long-term interest-bearing liabilities	352	472	410
Other long-term liabilities	169	150	160
Long-term provisions	2,330	2,047	2,069
Total long-term liabilities	2,851	2,669	2,639
Current interest-bearing liabilities	267	548	934
Other current liabilities	4,312	4,486	3,784
Current provisions	102	103	94
Total current liabilities	4,681	5,137	4,812
Total equity and liabilities	12,059	12,164	11,972
Pledged assets	645	472	667
Contingent liabilities	8,344	7,886	7,985
1) Of which receivables from property sales	135	291	72
2) Of which liabilities for property acquisition	669	1,596	704

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	January–September
SEK m	2016	2015	2015
Opening balance at beginning of period	4,521	4,635	4,635
Total comprehensive income for the period	970	674	960
Dividend	–602	–600	–600
Conversion of convertible loan	11	23	25
Equity component of convertible debentures	2	1	1
Buy-back of shares	–375	–375	–500
Closing balance at the end of the period	4,527	4,358	4,521

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Cash flow from operating activities before change
in working capital and taxes	1,547	1,138	562	345	1,941	1,532
Paid tax	–324	–727	–90	–521	–403	–806
Investment in development properties, etc.1)	–1,126	–2,093	–604	–432	–2,645	–3,612
Payment on account for development properties, etc.2)	1,711	1,855	623	583	2,631	2,775
Investment in project properties	–170	–114	–57	–48	–275	–219
Sale of project properties	1	-	-	-	52	51
Change in current liabilities/receivables	–50	134	–332	–120	–135	49
Cash flow from operating activities	1,589	193	102	–193	1,166	–230
Cash flow from investing activities	–5	–9	–2	–2	–7	–11
Loans raised	186	147	135	27	789	750
Amortization of debt	–896	–217	–217	–33	–1,231	–552
Buy-back of shares	–375	–375	–125	–125	–500	–500
Dividend	–602	–600	-	-	–602	–600
Cash flow from financing activities	–1,687	–1,045	–207	–131	–1,544	–902
Cash flow for the period	–103	–861	–107	–326	–385	–1,143
Cash and cash equivalents at end of the period	1,177	1,557	1,177	1,557	1,177	1,275
1) Of which investment in participations in tenant-owners associations and freehold residential units	–166	–273	–20	–33	–238	–345
2) Of which sale of participations in tenant-owners associations and freehold residential units	184	333	32	76	261	410

KEY FIGURES

	January–September		July–September		Oct–Sept	Full-year
%	2016	2015	2016	2015	2015/2016	2015
Operating margin	12.1	10.7	13.9	10.7	11.8	10.8
Return on capital employed					27.2	22.0
Return on equity					29.5	23.7
Debt/equity ratio (times)	0.2	0.1	0.2	0.1		0.3
Equity/assets ratio	38	36	38	36		38

ACCOUNTING PRINCIPLES

This interim report for the nine-month period of 2016 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 are applied.

The accounting policies applied in this interim report are described in the annual report for 2015, pages 68-71. The accounting principles and methods of calculation for the Group are the same as those applied in the annual report for the previous year.

REVENUE BY COUNTRY

		January–September		July–September		Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
Sweden	8,915	8,303	2,855	2,598	12,000	11,388
Norway	2,241	1,903	754	572	3,002	2,664
Finland	263	187	115	59	339	263
Denmark	15	32	0	8	21	38
Belgium	22	64	5	19	52	94
Restatement JM International 1)	–459	–294	–68	154	–673	–508
Total	10,997	10,195	3,661	3,410	14,741	13,939

REVENUE BY BUSINESS SEGMENT

	January–September		July–September		Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	5,144	4,642	1,699	1,522	6,775	6,273
JM Residential Sweden	2,823	2,259	830	671	3,842	3,278
JM International	2,541	2,186	874	658	3,414	3,059
JM Property Development	96	106	34	14	196	206
JM Construction	1,211	1,604	404	492	1,691	2,084
Elimination	–359	–308	–112	–101	–504	–453
Total (segment reporting)	11,456	10,489	3,729	3,256	15,414	14,447
Restatement JM International 1)	–459	–294	–68	154	–673	–508
Total	10,997	10,195	3,661	3,410	14,741	13,939

OPERATING PROFIT BY BUSINESS SEGMENT

	January–September		July–September		Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	908	790	308	259	1,196	1,078
JM Residential Sweden	354	206	135	68	456	308
JM International	137	120	63	40	183	166
JM Property Development	12	15	7	0	35	38
JM Construction	33	45	12	13	33	45
Group-wide expenses	–30	–32	–4	–7	–43	–45
Total (segment reporting)	1,414	1,144	521	373	1,860	1,590
Restatement JM International 1)	–80	–56	–11	–7	–115	–91
Total	1,334	1,088	510	366	1,745	1,499

OPERATING MARGIN BY BUSINESS SEGMENT

%	January–September 2016	2015	2016	July–September 2015	Oct–Sept 2015/2016	Full-year 2015
JM Residential Stockholm	17.7	17.0	18.1	17.0	17.7	17.2
JM Residential Sweden JM International	12.5 5.4	9.1 5.5	16.3 7.2	10.1 6.1	11.9 5.4	9.4 5.4
JM Construction	2.7	2.8	3.0	2.6	2.0	2.2

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT

	Oct–Sept	Full-year
SEK m	2015/2016	2015
JM Residential Stockholm	4,382	4,134
JM Residential Sweden	1,150	1,289
JM International	1,993	2,145
JM Property Development	455	326

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT

%	Oct–Sept 2015/2016	Full-year 2015
JM Residential Stockholm	27.3	26.1
JM Residential Sweden	39.7	23.9
JM International	9.2	7.7
JM Property Development	7.7	11.7

1) Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting.

OPERATING CASH FLOW BY BUSINESS SEGMENT

	January–September			July–September	Oct–Sept	Full-year
SEK m	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	1,191	296	180	457	551	–344
JM Residential Sweden	540	341	58	–72	732	533
JM International	267	243	71	56	458	434
JM Property Development	–52	–94	–56	–55	–164	–206
JM Construction	–15	31	25	–11	–80	–34

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

Carrying amount, SEK m	9/30/2016	9/30/2015	12/31/2015
JM Residential Stockholm	4,117	4,536	4,517
JM Residential Sweden	1,096	1,251	1,269
JM International	1,255	1,321	1,202
JM Property Development	35	25	35
JM Construction	44	56	44
Total	6,547	7,189	7,067

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

Number	9/30/2016	9/30/2015	12/31/2015
JM Residential Stockholm	12,400	11,900	12,400
JM Residential Sweden	9,400	9,100	9,900
JM International	7,900	7,200	8,200
JM Property Development 1)	1,200	500	600
Total	30,900	28,700	31,100
Of which, recognized on the balance sheet (development properties)
JM Residential Stockholm	7,800	8,000	8,700
JM Residential Sweden	4,900	4,700	5,200
JM International	4,100	4,000	4,100
JM Property Development 1)	200	0	100
Total	17,000	16,700	18,100

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

	January–September		July–September		Oct–Sept	Full-year
Number	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	1,153	1,230	353	375	1,523	1,600
JM Residential Sweden	975	951	311	326	1,297	1,273
JM International	790	650	296	190	983	843
JM Property Development 1)	-	-	-	-	54	54
Total	2,918	2,831	960	891	3,857	3,770

HOUSING STARTS BY BUSINESS SEGMENT

	January–September		July–September		Oct–Sept	Full-year
Number	2016	2015	2016	2015	2015/2016	2015
JM Residential Stockholm	1,111	1,197	456	444	1,581	1,667
JM Residential Sweden	978	860	331	317	1,346	1,228
JM International	741	554	271	127	969	782
JM Property Development 1)	-	54	-	-	-	54
Total	2,830	2,665	1,058	888	3,896	3,731

RESIDENTIAL UNITS IN CURRENT PRODUCTION

Number	9/30/2016	9/30/2015	12/31/2015
JM Residential Stockholm	3,564	3,354	3,627
JM Residential Sweden	2,300	1,979	1,944
JM International	1,591	1,256	1,303
JM Property Development 1)	338	484	338
Total	7,793	7,073	7,212

1) Refers to rental units and residential care units

PROJECT PROPERTIES, GROUP

Carrying amount, SEK m	9/30/2016	9/30/2015	12/31/2015
Properties under development	510	288	341
Completed commercial properties	44	38	37
Total	554	326	378

DEVELOPMENT PROPERTIES, GROUP

		January–September July–September Oct–Sept				Full-year
Carrying amount, SEK m	2016	2015	2016	2015	2015/2016	2015
Opening balance at beginning of period	7,067	6,802	6,534	6,727	7,189	6,802
New purchases	937	2,149	562	1,298	1,483	2,695
Transferred to production	–1,488	–1,328	–594	–476	–1,974	–1,814
Miscellaneous	31	–434	45	–360	–151	–616
Closing balance at the end of the period	6,547	7,189	6,547	7,189	6,547	7,067

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANY

	January–September		Full-year
SEK m	2016	2015	2015
Net sales	8,105	6,934	9,761
Production and operating costs	–6,476	–5,595	–7,875
Gross profit	1,629	1,339	1,886
Selling and administrative expenses	–466	–403	–545
Gains/losses on the sale of property	0	13	13
Operating profit	1,163	949	1,354
Financial income and expenses	179	68	1
Profit before appropriations and tax	1,342	1,017	1,355
Appropriations	-	-	–167
Profit before tax	1,342	1,017	1,188
Taxes	–248	–650 1)	–704 1)
Profit/loss for the period	1,094	367	484

1) Of which SEK 409m refers to paid tax attributable to a ruling by the Administrative Court of Appeals in July for the years 2007 and 2008. The proceedings referred to impairment losses on shares in Group companies, which the Administrative Court of Appeals ruled to be non-deductible. JM had made full provisions in the consolidated accounts for a negative outcome.

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK m	9/30/2016	9/30/2015	12/31/2015
Assets
Non-current assets	1,232	1,344	1,578
Current assets	7,754	7,915	7,930
Total assets	8,986	9,259	9,508
Equity and liabilities
Shareholders' equity	2,218	2,211	2,205
Untaxed reserves	1,975	1,775	1,975
Provisions	947	871	855
Long-term liabilities	312	341	353
Current liabilities	3,534	4,061	4,120
Total equity and liabilities	8,986	9,259	9,508
Pledged assets	169	169	169
Contingent liabilities	8,593	9,220	9,250

Stockholm, October 26, 2016 JM AB (publ)

Johan Skoglund President and Chief Executive Officer

REVIEW REPORT JM AB (PUBL), CORPORATE IDENTITY NUMBER 556045-2103

INTRODUCTION

We have reviewed the condensed interim report for JM AB (publ) as at September 30, 2016 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.

The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material aspects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm, October 26, 2016 Ernst & Young AB

Ingemar Rindstig Authorized Public Accountant

GROUP

FIVE-YEAR OVERVIEW

SEK m	2015	2014	2013	2012	2011
Revenue	13,939	14,216	12,603	12,480	12,001
Operating profit	1,499	1,819	1,523	1,374	1,513
Profit before tax	1,427	1,744	1,464	1,318	1,463
Total assets	11,972	12,375	11,150	11,556	11,296
Cash flow from operating activities	–230	978	898	979	733
Interest-bearing net liabilities (+)/receivables (–)	1,198	–337	–642	–667	–970
Operating margin, %	10.8	12.8	12.1	11.0	12.6
Return on equity, %	23.7	28.7	25.0	21.9	24.5
Equity/assets ratio, %	38	37	40	38	41
Earnings per share, SEK	14.50	17.00	14.10	11.70	12.50
Dividend per share, SEK	8.25	8.00	7.25	6.75	6.50
Number of available building rights	31,100	29,400	27,700	26,600	27,200
Number of residential units sold	3,770	3,195	3,265	2,952	3,112
Number of housing starts	3,731	3,445	2,953	3,163	3,629
Number of residential units in current production	7,212	6,375	5,609	5,988	6,401

GROUP

QUARTERLY OVERVIEW

SEK m		2016		2015
INCOME STATEMENT	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	3,661	3,866	3,470	3,744	3,410	3,485	3,300
Production and operating costs	–2,988	–3,156	–2,851	–3,092	–2,886	–2,899	–2,753
Gross profit Selling and administrative expenses	673 –200	710 –266	619 –217	652 –242	524 –179	586 –235	547 –210
Gains/losses on the sale of property	37	–23	1	1	21	10	24
Operating profit	510	421	403	411	366	361	361
Financial income and expenses	–12	–7	–16	–17	–24	–12	–19
Profit before tax	498	414	387	394	342	349	342
Taxes Profit for the period	–113 385	–96 318	–88 299	–84 310	–94 248	–83 266	–81 261
BALANCE SHEET	9/30	6/30	3/31	12/31	9/30	6/30	3/31
ASSETS
Non-current assets	233	219	212	209	217	229	228
Project properties	554	495	437	378	326	280	238
Development properties	6,547	6,534	6,769	7,067	7,189	6,727	6,839
Participations in tenant-owners associations, etc.	240	247	233	235	229	292	318
Current receivables Cash and cash equivalents	3,308 1,177	3,196 1,282	3,027 1,182	2,808 1,275	2,646 1,557	2,048 1,887	2,166 2,077
Total current assets	11,826	11,754	11,648	11,763	11,947	11,234	11,638
Total assets	12,059	11,973	11,860	11,972	12,164	11,463	11,866
EQUITY AND LIABILITIES
Shareholders' equity	4,527	4,263	4,719	4,521	4,358	4,277	4,726
Long-term interest-bearing liabilities	352	343	375	410	472	489	426
Other long-term liabilities Long-term provisions	169 2,330	152 2,221	151 2,083	160 2,069	150 2,047	158 2,455	166 2,352
Total long-term liabilities	2,851	2,716	2,609	2,639	2,669	3,102	2,944
Current interest-bearing liabilities	267	368	408	934	548	569	640
Other current liabilities	4,312	4,532	4,035	3,784	4,486	3,412	3,453
Current provisions	102	94	89	94	103	103	103
Total current liabilities Total equity and liabilities	4,681 12,059	4,994 11,973	4,532 11,860	4,812 11,972	5,137 12,164	4,084 11,463	4,196 11,866
CASH FLOW STATEMENT From operating activities	Q 3 102	Q 2 886	Q 1 601	Q 4 –423	Q 3 –193	Q 2 659	Q 1 –273
From investing activities	–2	–3	0	–2	–2	–5	–2
From financing activities	–207	–784	–696	143	–131	–841	–73
Total cash flow for the period Cash and cash equivalents at	–107	99	–95	–282	–326	–187	–348
end of the period	1,177	1,282	1,182	1,275	1,557	1,887	2,077
INTEREST-BEARING NET LIABILITIES/
RECEIVABLES Interest-bearing net liabilities(+)/	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
receivables(–) at beginning of the period	656	741	1,198	596	295	106	–337
Change in interest-bearing net liabilities/
receivables Interest-bearing net liabilities(+)/	81	–85	–457	602	301	189	443
receivables(–) at end of the period	737	656	741	1,198	596	295	106
DEVELOPMENT PROPERTIES	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of period	6,534	6,769	7,067	7,189	6,727	6,839	6,802
New purchases	562	125	250	546	1,298	347	504
Transferred to production	–594	–344	–550	–486	–476	–433	–419
Miscellaneous	45	–16	2	–182	–360	–26	–48
Carrying amount at end of period	6,547	6,534	6,769	7,067	7,189	6,727	6,839
KEY FIGURES	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, % Debt/equity ratio, times	13.9 0.2	10.9 0.2	11.6 0.2	11.0 0.3	10.7 0.1	10.4 0.1	10.9 0.0
Equity/assets ratio, %	38	36	40	38	36	37	40
Earnings per share, SEK	5.30	4.40	4.10	4.20	3.30	3.50	3.50
Number of available building rights	30,900	30,400	30,800	31,100	28,700	27,900	29,700
Number of residential units sold	960	1,031	927	939	891	1,097	843
Number of housing starts Number of residential units in current production	1,058 7,793	916 7,081	856 7,550	1,066 7,212	888 7,073	1,029 6,917	748 6,635

BUSINESS SEGMENT

QUARTERLY OVERVIEW

SEK m		2016		2015
JM RESIDENTIAL STOCKHOLM	Q3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,699	1,741	1,704	1,631	1,522	1,575	1,545
Operating profit 1)	308	306	294	288	259	268	263
Operating margin, %	18.1	17.6	17.3	17.7	17.0	17.0	17.0
Average operating capital Return on operating capital, % 2)	4,382 27.3	4,287 26.8	4,229 26.2	4,134 26.1	3,823 30.8	3,530 34.2	3,336 37.1
Operating cash flow	180	551	460	–640	457	252	–413
Carrying amount, development properties	4,117	4,124	4,310	4,517	4,536	3,928	4,012
Number of available building rights	12,400	12,100	12,300	12,400	11,900	11,500	11,900
Number of residential units sold	353	403	397	370	375	480	375
Number of housing starts	456	283	372	470	444	402	351
Number of residential units in current production 1) Of which property sales	3,564 -	3,237 -	3,801 -	3,627 0	3,354 -	3,277 -	3,332 -
JM RESIDENTIAL SWEDEN	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	830	986	1,007	1,019	671	851	737
Operating profit 1)	135	114	105	102	68	78	60
Operating margin, %	16.3	11.6	10.4	10.0	10.1	9.2	8.1
Average operating capital	1,150	1,175	1,249	1,289	1,304	1,323	1,399
Return on operating capital, % 2)	39.7	33.1	28.3	23.9	20.9	18.9	16.1
Operating cash flow	58	308	174	192	–72	334	79
Carrying amount, development properties Number of available building rights	1,096 9,400	1,137 9,600	1,189 9,600	1,269 9,900	1,251 9,100	1,190 8,900	1,101 9,300
Number of residential units sold	311	345	319	322	326	358	267
Number of housing starts	331	343	304	368	317	278	265
Number of residential units in current production	2,300	2,075	1,962	1,944	1,979	1,883	1,758
1) Of which property sales	37	0	-	0	-	-	0
JM INTERNATIONAL	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue Operating profit 1)	874	898	769	873	658	892	636
Operating margin, %	63 7.2	31 3.5	43 5.6	46 5.3	40 6.1	47 5.3	33 5.2
Average operating capital	1,993	2,013	2,093	2,145	2,211	2,243	2,285
Return on operating capital, % 2)	9.2	7.9	8.4	7.7	8.3	7.7	6.6
Operating cash flow	71	165	31	191	56	271	–84
Carrying amount, development properties	1,255	1,194	1,191	1,202	1,321	1,528	1,645
Carrying amount, project properties	38	36	35	31	32	28	28
Number of available building rights Number of residential units sold	7,900 296	8,000 283	8,200 211	8,200 193	7,200 190	7,000 259	7,900 201
Number of housing starts	271	290	180	228	127	295	132
Number of residential units in current production	1,591	1,431	1,449	1,303	1,256	1,273	1,115
1) Of which property sales	-	–23	-	–1	20	9	11
JM PROPERTY DEVELOPMENT	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	34	34	28	100	14	45	47
Operating profit 1)	7	–1	6	23	0	0	15
Average operating capital Return on operating capital, % 2)	455 7.7	405 6.9	361 8.0	326 11.7	273 9.5	245 14.3	237 24.5
Operating cash flow	–56	–65	69	–112	–55	–34	–5
Carrying amount, development properties	35	35	35	35	25	25	25
Carrying amount, project properties	516	459	402	347	294	252	210
Number of available building rights 3)	1,200	700	700	600	500	500	600
Number of residential units sold 3)	-	-	-	54	-	-	-
Number of housing starts 3) Number of residential units in current production 3)	- 338	- 338	- 338	- 338	- 484	54 484	- 430
1) Of which property sales	-	-	1	2	1	1	13
3) Refers to rental units and residential care units.
JM CONSTRUCTION	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	404	447	360	480	492	558	554
Operating profit	12	11	10	0	13	16	16
Operating margin, %	3.0	2.5	2.8	0.0	2.6	2.9	2.9
Operating cash flow	25	–34	–6	–65	–11	–66	108
JM OTHER	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination) Operating profit (Group-wide expenses)	–112 –4	–136 –13	–111 –13	–145 –13	–101 –7	–105 –10	–102 –15
RESTATEMENT JM INTERNATIONAL	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	–68	–104	–287	–214	154	–331	–117
Operating profit	–11	–27	–42	–35	–7	–38	–11

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

JM IN BRIEF

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.

BUSINESS

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 and Finland. We are also involved in the project development of commercial premises and contract work, primarily in the Greater Stockholm area.

JM should promote long-term sustainability work in all of its operations.

Annual sales total approximately SEK 15 billion and the company has approximately 2,400 employees.

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

FINANCIAL TARGETS AND DIVIDENDS POLICY

The operating margin should amount to 10 percent, including gains/losses from property sales. 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 therefore are included in the calculation of dividends.

DISCLOSURES

This information is information that JM AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08.00 CETon October 26, 2016.

FOR MORE INFORMATION PLEASE CONTACT:

Claes Magnus Åkesson, CFO, Head of IR Tel. +46 8 782 89 71

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

February 7, 2017 Year-end Report 2016

April 27, 2017 Interim report January – March Annual General Meeting

July 14, 2017 Interim report January – June

October 26, 2017 Interim report January – September

PRESS RELEASES, Q3

09/30/2016 Conversion of Convertible debentures in to shares in JM AB (publ)

09/16/2016

JM AB's Nomination Committee for the 2017 Annual General Meeting

08/31/2016

Notification of Reduction in Share Capital in JM AB (publ)

08/31/2016

Conversion of Convertible debentures in to shares in JM AB (publ)

07/29/2016 Conversion of Convertible debentures and warrants in to shares in JM AB (publ)

07/15/2016 JM's Board of Directors decided on continued Buy-back of shares

07/15/2016 Interim report January - June 2016

07/08/2016

JM selling property in Örebro, Sweden

JM's annual reports, interim reports and other financial information are available at www.jm.se/investors

JM AB (publ)

Telephone +46 8 782 87 00 Fax +46 8 782 86 00 Comp. Reg. No. 556045-2103 Website www.jm.se/en

Mailing address SE-169 82 Stockholm Street address Gustav III:s boulevard 64, Solna