JM — Interim / Quarterly Report 2017

Jul 14, 2017

JM GROUP INTERIM REPORT JANUARY – JUNE 2017

CONTINUED STABLE DEVELOPMENT IN ALL MARKETS

JANUARY – JUNE 2017

Revenue according to segment reporting increased to SEK 8,644m (7,727) and operating profit increased to SEK 1,188m (893). The operating margin increased to 13.7 percent (11.6)

Profit before tax increased to SEK 1,467m (801). Profit after tax increased to SEK 1,201m (617)

Return on equity for the past twelve months increased to 43.6 percent (27.5). Earnings per share for the first six months of the year increased to SEK 16.90 (8.40)

Consolidated cash flow including net investment in properties was SEK 1,294m (1,487)

The number of sold residential units was 1,735 (1,958) and housing starts were 1,719 (1,772)

APRIL – JUNE 2017

Revenue according to segment reporting increased to SEK 4,399m (3,970) and operating profit increased to SEK 618m (448). The operating margin increased to 14.0 percent (11.3)

Profit before tax increased to SEK 626m (414). Profit after tax increased to SEK 489m (318)

Consolidated cash flow including net investment in properties was SEK 293m (886)

The number of residential units sold totaled 871 (1,031) and housing starts were 906 (916)

		JANUARY–JUNE APRIL–JUNE		JULY–JUNE FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue (segment reporting)	8,644	7,727	4,399	3,970	16,669	15,752
Operating profit (segment reporting)	1,188	893	618	448	2,306	2,011
Operating margin (segment reporting), %	13.7	11.6	14.0	11.3	13.8	12.8
Profit before tax	1,467	801	626	414	2,537	1,871
Cash flow from operating activities	1,294	1,487	293	886	1,764	1,957
Return on equity, %					43.6	31.2
Equity/assets ratio, %	38	36	38	36		40
Earnings per share, SEK	16.90	8.40	6.90	4.40	28.80	20.40
Number of residential units sold	1,735	1,958	871	1,031	3,620	3,843
Number of housing starts	1,719	1,772	906	916	4,134	4,187
Number of residential units in current production	7,641	7,081				7,984
Revenue according to IFRIC 15	8,651	7,336	4,494	3,866	16,606	15,291
Operating profit according to IFRIC 15	1,225	824	643	421	2,332	1,931

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

Cover photo: Kajplats 6, Liljeholmskajen in Stockholm

GROUP

"Demand for JM's residential units has continued to be stable in our main markets during the second quarter. The housing operations in both Stockholm and the rest of Sweden are showing a positive development with good profitability. The operations in Norway and Finland also showed stable development.

We continue to see high levels of competition for land for residential purposes, and we are selective when it comes to acquisitions. We have, however, added to the building rights portfolio in Sweden and Norway.

During the quarter, we started two large projects with attractive locations in Stockholm. Kajplats 6 will be the highest building at Liljeholmskajen with 26 floors and a restaurant on the top floor. The building will house almost 200 apartments, of which half will be in the high rise and half in a lower building. We work actively with the social design of our housing projects. Here, the courtyard is planned with meeting places and play areas for children, and the structure is extended over the water with a public sun deck. The bicycle storage rooms are easily accessible directly from the quay as well as from the stairwells.

We started the first phase of Kajplats Kvarnholmen next to the entrance to Stockholm's harbor and with a view of Djurgården. It will consist of 119 apartments. Several of the area's buildings will have a shared roof terrace for residents, and courtyards will be attractive for the residents to view from above. Commercial premises are also planned here.

We are now expanding JM's offer of housing-related services in a new subsidiary, JM@home. We are noting that customers would like time-saving services and expert help in both their economic and technical management, as well as services close to home in the form of, for example, ROT and RUT services. JM@home will also be leading the way in terms of digital solutions related to the area of Smart Homes.

Because JM has built the building, we are knowledgeable about everything from technological installations to built-in material that must be administered. We want to facilitate everyday life for our customers with accommodation that is more worry-free after occupancy. The focus on management and housing services will be introduced at the beginning of 2018. JM views this as an opportunity to extend the relationship with the customer and thus gain more feedback for our core business of building homes.

Structurally, the conditions for JM's business are good. 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."

Johan Skoglund, President and CEO

MARKET, SALES AND HOUSING STARTS JANUARY – JUNE 2017

Demand for newly built homes in Sweden and Norway has been stable during the first six 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 was 1,735 (1,958) 1). The percentage of sold or reserved homes in relation to current production amounts to 75 percent (83), with an interval of 60-65 percent considered normal. JM Residential Stockholm sold 742 residential units (800), JM Residential Sweden sold 669 (664), JM International sold 324 (494) and JM Property Development sold 0 (0).

The number of housing starts was 1,719 (1,772) 2). JM Residential Stockholm started production on 754 residential units (655), JM Residential Sweden on 679 (647), JM International on 286 (470) and JM Property Development on 0 (0).

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

The number of residential units in current production increased to 7,641 (7,081), of which 416 are rental units and residential care units (338).

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

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
OPERATING PROFIT (SEK M)	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	710	600	363	306	1,405	1,295
JM Residential Sweden	339	219	175	114	600	480
JM International	126	74	67	31	256	204
JM Property Development	24	5	17	–1	49	30
JM Construction	17	21	8	11	39	43
Group-wide expenses	–28	–26	–12	–13	–43	–41
Total according to segment reporting	1,188	893	618	448	2,306	2,011
Restatement JM International 1)	37	–69	25	–27	26	–80
Total according to IFRIC 15	1,225	824	643	421	2,332	1,931
Of which property sales	14	–22	14	–23	51	15

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

		JANUARY–JUNE		APRIL–JUNE		FULL-YEAR
OPERATING MARGIN, %	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	19.1	17.4	19.3	17.6	18.9	18.1
JM Residential Sweden	14.7	11.0	15.2	11.6	14.5	12.6
JM International	6.9	4.4	7.4	3.5	7.0	5.9
JM Construction	1.7	2.6	1.4	2.5	2.1	2.6

REVENUE, OPERATING PROFIT AND OPERATING MARGIN JANUARY – JUNE 2017

Consolidated revenue according to segment reporting for the first six months increased to SEK 8,644m (7,727). Revenue restated according to IFRIC 15 increased to SEK 8,651m (7,336).

Operating profit according to segment reporting increased to SEK 1,188m (893) and the operating margin increased to 13.7 percent (11.6). Operating profit restated according to IFRIC 15 increased to SEK 1,225m (824). The restatement is related to JM International and had an effect on earnings of SEK 37m (–69).

Properties were sold during the first six months of the year for SEK 15m (27) with gains of SEK 14m (–22).

Rental income from JM's project properties was SEK 18m (11). Net rental income was SEK 10m (1).

APRIL – JUNE 2017

Consolidated revenue according to segment reporting for the second quarter increased to SEK 4,399m (3,970). Revenue restated according to IFRIC 15 increased to SEK 4,494m (3,866).

Operating profit according to segment reporting increased to SEK 618m (448) and the operating margin increased to 14.0 percent (11.3). Operating profit restated according to IFRIC 15 increased to SEK 643m (421). The restatement is related to JM International and had an effect on earnings of SEK 25m (–27).

Properties were sold during the quarter for SEK 15m (27) with gains of SEK 14m (–23).

Rental income from JM's project properties was SEK 10m (6). Net rental income was SEK 6m (0).

RESIDENTIAL BUILDING RIGHTS JANUARY – JUNE 2017

The number of available building rights at the end of the first six months amounted to 34,600 (30,400), of which 18,000 (17,500) are recognized in the balance sheet. Capital tied up in building rights (development properties in the balance sheet) for residential units amounted to SEK 6,832m (6,455).

JM acquired development properties for residential units during the first six months of the year for SEK 737m (375), of which SEK 268m relates to JM Residential Stockholm, SEK 150m to JM Residential Sweden and SEK 319m to JM International.

RESIDENTIAL UNITS IN CURRENT PRODUCTION	6/30/2017	6/30/2016	12/31/2016
Number of residential units in current production 1) 2)	7,641	7,081	7,984
Percentage of sold residential units in current production, % 3)	65	66	65
Percentage of reserved residential units in current production, %	10	17	12
Percentage of sold and reserved residential units in current production, %	75	83	77
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	416	338	416
Includes residential units in projects where costs incurred are only reported as project properties under construction	416	284	416
2) Beginning with production startup through final occupancy according to plan.

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

COMPLETED PRODUCTION, UNSOLD UNITS	6/30/2017	6/30/2016	12/31/2016
Completed production, number of unsold units 1)	91	92	70
- Of which in the balance sheet reported as "Participations in tenant-owners associations, etc."	67	68	64

1) After final occupancy according to plan.

included in percentage of sold/reserved

FINANCIAL ITEMS

JANUARY – JUNE 2017

The sale of the participations in the housing developer Småa AB during the first quarter resulted in gains of SEK 275m. Excluding this sale, net financial items decreased by SEK 10m compared to last year.

The total interest-bearing loan stock was SEK 1,941m (1,942), of which the pensions liability comprised SEK 1,283m (1,231). At the end of the first six months of the year, the average interest rate for the total interest-bearing loan stock including pension liabilities was 2.5 percent (2.6). The average term for fixed-rate loans excluding the pension liability was 0.3 years (0.4).

Consolidated available liquidity was SEK 5,011m (4,082). Aside from cash and cash equivalents of SEK 2,211m (1,282), 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 2.0 years (1.8).

Interest-bearing net receivables at the end of the first six months totaled SEK 274m (–656). Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 497m (534). Of these liabilities, SEK 347m (383) 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–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Financial income 1)	276	12	1	11	281	17
Financial expenses	–34	–35	–18	–18	–67	–68
Currency effect from the closing down of operations 2)	-	-	-	-	–9	–9
Financial income and expenses	242	–23	–17	–7	205	–60
1) Of which gains from the sale of participations in Småa AB	275	-	-	-	275	-

2) Pertains to JM's operations in Denmark.

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Interest-bearing net liabilities(+)/receivables(–) at beginning of the period	435	1,198	–778	741	656	1,198
Change in interest-bearing net liabilities/receivables	–709	–542	504	–85	–930	–763
Interest-bearing net liabilities(+)/receivables(–) at end of the period	–274	656	–274	656	–274	435

CASH FLOW

JANUARY – JUNE 2017

Cash flow from operating activities was SEK 1,294m (1,487) during the first six months of the year. Net investments in development properties resulted in a positive cash flow of SEK 107m (560). Holdings of repurchased residential units resulted in a negative cash flow of SEK –71m (6). Consolidated cash flow attributable to project properties (sales minus investment) during the first six months was SEK –190m (–112).

APRIL – JUNE 2017

Cash flow from operating activities was SEK 293m (886) during the second quarter. Net investments in development properties resulted in a negative cash flow of SEK –15m (241). Holdings of repurchased residential units resulted in a negative cash flow of SEK –32m (–4). Consolidated cash flow attributable to project properties (sales minus investment) during the second quarter was SEK –104m (–58).

RISKS AND UNCERTAINTIES

JM's risk and risk management policies are presented in the 2016 annual report on pages 29-32. No significant changes have occurred to change these reported risks.

CONVERTIBLE PROGRAM

The 2017 Annual General Meeting resolved that JM would raise a convertible debenture loan with a maximum value of SEK 160m by issuing a maximum of 450,000 convertible debentures with a maturity of four years aimed at all employees in Sweden.

Upon expiry of the subscription period, the loan amounts to about SEK 14.5m through the issue of about 35,500 convertible debentures.

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.

The subscribed convertible bonds may be converted to shares at a price of SEK 409 between June 1, 2020 and May 18, 2021.

Through conversion, JM's share capital could increase by a maximum of SEK 36,000, which corresponds to a dilution of 0.1 percent of the shares and votes in the company. The convertible debenture loan will be settled against cash in July 2017.

BUY-BACK AND HOLDINGS OF OWN SHARES

During Q2 2017, 389,650 shares were bought back for SEK 125m. Holdings of own shares subsequently total 2,434,497.

The number of outstanding shares, excluding holdings of own shares, at June 30, 2017, totals 70,664,525.

PERSONNEL

The number of employees at the end of the first six months was 2,538 (2,354). The number of wage-earners was 1,075 (1,001) and the number of salaried employees was 1,463 (1,353). 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 SEGMENTS 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.

The average prices on the existing home market were unchanged during the second quarter and the supply of homes was relatively low. 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' willingness to sign a contract early in the process is at a normal level.

Business segment revenue increased to SEK 3,718m (3,445), which confirms the continued stable development for the operations.

Operating profit increased to SEK 710m (600). The operating margin increased to 19.1 percent (17.4).

Cash flow during the first six months is in balance taking into consideration the reduction in development properties.

During the second quarter, production was started on a total of 454 residential units, of which 425 in apartment buildings in Stockholm, Nacka and Ekerö and 29 single-family homes in Österåker.

During the second quarter, JM purchased building rights corresponding to 450 residential units in Upplands-Bro, Österåker and Huddinge.

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue	3,718	3,445	1,878	1,741	7,435	7,162
Operating profit 1)	710	600	363	306	1,405	1,295
Operating margin, %	19.1	17.4	19.3	17.6	18.9	18.1
Average operating capital					4,354	4,388
Return on operating capital, %					32.3	29.5
Operating cash flow	873	1,011	375	551	1,420	1,558
Carrying amount, development properties	4,074	4,124				4,286
Number of available building rights	13,000	12,100				13,000
Number of residential units sold	742	800	388	403	1,494	1,552
Number of housing starts	754	655	454	283	1,844	1,745
Number of residential units in current production	3,598	3,237				3,786
Number of employees	875	844				859
1) Of which property sales	6	-	6	-	6	-

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.

The average prices on the existing home market did not change during the second quarter. There were small changes on individual markets within the business segment.

Competition for land for residential purposes is tough. Interest in JM's projects is strong. Customers' willingness to sign a contract early in the process is at a normal level.

Business segment revenue increased to SEK 2,299m (1,993) and operating profit increased to SEK 339m (219). The operating margin increased to 14.7 percent (11.0). The profit and the margin improved as a result of strong demand and an increase in prices over the past few years.

Cash flow during the first six months is in balance with a fluctuation in working capital across the quarters.

During the second quarter, production was started on a total of 336 residential units in apartment buildings in Malmö, Lund, Lomma, Gothenburg, Uppsala and Upplands Väsby.

During the second quarter, JM purchased building rights in Gothenburg corresponding to 200 residential units.

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue	2,299	1,993	1,153	986	4,126	3,820
Operating profit 1)	339	219	175	114	600	480
Operating margin, %	14.7	11.0	15.2	11.6	14.5	12.6
Average operating capital					893	1,085
Return on operating capital, %					67.2	44.2
Operating cash flow	468	482	–29	308	706	720
Carrying amount, development properties	1,225	1,137				1,350
Number of available building rights	10,000	9,600				9,700
Number of residential units sold	669	664	348	345	1,323	1,318
Number of housing starts	679	647	336	343	1,368	1,336
Number of residential units in current production	2,279	2,075				2,240
Number of employees	598	569				586
1) Of which property sales	-	0	-	0	37	37

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.

Business segment revenue increased to SEK 1,829m (1,667) and operating profit increased to SEK 126m (74). The operating margin increased to 6.9 percent (4.4).

Cash flow during the first six months is in balance.

NORWAY

The price level on the existing home market in Norway was stable during the second quarter, except in the Oslo region where prices decreased after a long period of strong growth.

JM Norway's revenue increased to SEK 1,566m (1,487) and operating profit increased to SEK 123m (96). The operating margin increased to 7.9 percent (6.5).

During the second quarter, 105 residential units (175) were sold and production began on 76 units (181). Housing starts during the second quarter consist of residential units in apartment buildings in Oslo and Tönsberg and single-family homes outside of Bergen. The lower level of housing starts during the first six months of the year is in line with the planning for the year, which means an increasing percentage of starts during the remainder of the year where planning process constitute a limitation factor. In Norway, the sale of new homes is by law conditional on the housing start, which means that JM recognizes the sale in conjunction with the start of production. The number of residential units in current production amounts to 1,074 (1,113).

During the second quarter, JM purchased building rights outside of Oslo corresponding to 262 residential units.

Available building rights correspond to 7,700 residential units (5,900).

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue	1,829	1,667	907	898	3,639	3,477
- of which JM Norway	1,566	1,487	753	810	3,135	3,056
Operating profit 1)	126	74	67	31	256	204
- of which JM Norway	123	96	66	54	254	227
Operating margin, %	6.9	4.4	7.4	3.5	7.0	5.9
- of which JM Norway	7.9	6.5	8.8	6.7	8.1	7.4
Average operating capital					2,060	1,997
Return on operating capital, %					12.4	10.2
Operating cash flow	165	196	88	165	122	153
Carrying amount, development properties	1,533	1,194				1,401
Carrying amount, project properties	12	36				13
Number of available building rights	10,700	8,000				8,900
Number of residential units sold	324	494	135	283	803	973
Number of housing starts	286	470	116	290	693	877
Number of residential units in current production	1,348	1,431				1,542
Number of employees	450	395				420
1) Of which property sales	-	–23	-	–23	-	–23

FINLAND

The level of activity on the housing market in Helsinki continues to show signs of improvement. The turnover rate has increased to a more normal level. Prices in the capital region continued to increase slightly during the second quarter.

During the second quarter, 30 residential units (105) were sold and production began on 40 units (109). The number of residential units in current production amounts to 274 (256).

During the second quarter, no building rights were acquired. Available building rights correspond to 2,700 residential units (1,900).

BELGIUM

JM closed its operating activities in Belgium during Q1 2017. JM still owns one development property and six residential units that are for sale. During the second quarter, 0 residential unit (3) were sold.

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.

Business segment revenue decreased to SEK 37m (62), including contracting revenue of SEK 19m (52) and rental income of SEK 18m (10). Operating profit was SEK 24m (5).

Net rental income for project properties was SEK 10m (0). The profit from construction contracts was SEK 17m (17) and gains from property sales were SEK 8m (1).

Cash flow during the first six months 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 91 percent. Within the Bolinder area in Kallhäll, Järfälla, the occupancy rate is 90 percent in the buildings that will not be demolished.

The Dalénum rental project consisting of 97 apartments was completed in 2016 and is held in JM's balance sheet. All apartments have been rented.

Production is ongoing in three rental projects in JM's own balance sheet: Tjärtunnan in Stureby, 187 apartments with occupancy in 2017/2018, Spaken in Hägernäs, Täby, 136 apartments with occupancy planned for 2018, and Alphyddan in Sickla, Nacka, 93 student apartments with occupancy planned for 2018.

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue	37	62	19	34	117	142
Operating profit 1)	24	5	17	–1	49	30
Average operating capital					623	508
Return on operating capital, %					7.9	5.9
Operating cash flow	–148	4	–77	–65	–253	–101
Carrying amount, development properties	10	35				35
Carrying amount, project properties	779	459				589
Number of available building rights 2)	900	700				900
Number of residential units sold 2)	-	-	-	-	-	-
Number of housing starts 2)	-	-	-	-	229	229
Number of residential units in current production 2)	416	338				416
Number of employees	31	27				31
1) Of which property sales	8	1	8	-	8	1

2) Refers to rental units and residential care units.

JM CONSTRUCTION

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

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.

Business segment revenue increased to SEK 1,015m (807) and the operating profit decreased to SEK 17m (21). The operating margin decreased to 1.7 percent (2.6). Profit is limited by a negative outcome in completed project. Long-term work is underway within the business segment to improve profitability.

Cash flow during the first six months is restricted by a temporary increase in working capital.

During the second quarter, the business segment received a number of assignments, of which the largest is the new production of an apartment building in Tyresö for Småa.

The largest ongoing projects are a new operational area at Arlanda Airport (Swedavia), new production of a school (Vallentuna Municipality), new production of office buildings in Danderyd (Skandia Fastigheter), renovation of quays in Norrtälje Harbor and development projects for future housing production (Norrtälje Municipality) and new production of apartment buildings in Norra Djurgårdsstaden (HSB and Riksbyggen).

	JANUARY–JUNE			APRIL–JUNE		FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Revenue 1)	1,015	807	578	447	1,873	1,665
Operating profit	17	21	8	11	39	43
Operating margin, %	1.7	2.6	1.4	2.5	2.1	2.6
Operating cash flow	–50	–40	–82	–34	22	32
Carrying amount, development properties	50	44				49
Number of employees	434	392				393
1) Of which internal	254	247	136	136	521	514

GROUP

CONDENSED CONSOLIDATED INCOME STATEMENT

SEK M 2017 2016 2017 2016 2016/2017 Revenue 8,651 7,336 4,494 3,866 16,606 Production and operating costs –6,912 –6,007 –3,583 –3,156 –13,345	2016 15,291 –12,440 2,851 –935
Gross profit 1,739 1,329 911 710 3,261
Selling and administrative expenses –528 –483 –282 –266 –980
Gains/losses on the sale of property 14 –22 14 –23 51	15
Operating profit 1,225 824 643 421 2,332	1,931
Financial income and expenses 242 –23 –17 –7 205	–60
Profit before tax 1,467 801 626 414 2,537	1,871
Taxes –266 –184 –137 –96 –475	–393
Profit for the period 1,201 617 489 318 2,062	1,478
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign operations –19 45 –7 23 38	102
Items that will not be reclassified as income
Restatement of defined-benefit pensions –22 –100 –22 –100 –3	–81
Tax attributable to other comprehensive income 5 22 5 22 1	18
Comprehensive income for the period 1,165 584 465 263 2,098	1,517
Net profit for the period is attributable to shareholders of the Parent Company 1,201 617 489 318 2,062	1,478
Comprehensive income for the period is attributable to shareholders of the Parent Company 1,165 584 465 263 2,098	1,517
Earnings per share 1), basic, attributable to shareholders of the Parent Company, SEK 16.90 8.40 6.90 4.40 28.80	20.40
Earnings per share 1), diluted, attributable to shareholders of the Parent Company, SEK 16.90 8.40 6.90 4.40 28.80	20.30
Number of outstanding shares at end of period 70,664,525 72,841,685 70,664,525 72,481,685 70,664,525	71,448,330
Average number of shares, basic 71,074,062 73,060,196 70,861,606 72,748,157 71,539,750	72,526,479
Average number of shares, diluted 71,264,130 73,289,280 71,053,647 72,978,076 71,728,831	72,725,820

1) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

SEK M	6/30/2017	6/30/2016	12/31/2016
ASSETS
Non-current assets	213	219	230
Project properties	791	495	602
Development properties	6,892	6,534	7,121
Participations in tenant-owners associations, etc.	269	247	233
Current receivables 1)	3,132	3,196	2,774
Cash and cash equivalents	2,211	1,282	1,520
Total current assets	13,295	11,754	12,250
Total assets	13,508	11,973	12,480
EQUITY AND LIABILITIES 2)
Shareholders' equity	5,200	4,263	4,951
Non-current interest-bearing liabilities	223	343	282
Other non-current liabilities	150	152	168
Non-current provisions	2,325	2,221	2,236
Total non-current liabilities	2,698	2,716	2,686
Current interest-bearing liabilities	435	368	438
Other current liabilities	5,066	4,532	4,304
Current provisions	109	94	101
Total current liabilities	5,610	4,994	4,843
Total equity and liabilities	13,508	11,973	12,480
Pledged assets	569	608	688
Contingent liabilities	10,163	9,071	9,451
1) Of which receivables from property sales	61	74	72
2) Of which liabilities for property acquisition	570	690	654

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–JUNE	FULL-YEAR
SEK M	2017	2016	2016
Opening balance at beginning of period	4,951	4,521	4,521
Total comprehensive income for the period	1,165	584	1,517
Dividend	–675	–602	–602
Conversion of convertible loan	8	8	13
Equity component of convertible debentures	1	2	2
Buy-back of shares	–250	–250	–500
Closing balance at the end of the period	5,200	4,263	4,951

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	JANUARY–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Cash flow from operating activities before change in
working capital and taxes	1,402	985	734	587	2,630	2,213
Paid tax	–220	–234	–121	–99	–399	–413
Investment in development properties, etc.1)	–1,133	–522	–542	–188	–2,826	–2,215
Payment on account for development properties, etc.2)	1,169	1,088	495	425	2,336	2,255
Investment in project properties	–190	–113	–104	–58	–319	–242
Sale of project properties	-	1	-	0	0	1
Change in current liabilities/receivables	266	282	–169	219	342	358
Cash flow from operating activities	1,294	1,487	293	886	1,764	1,957
Cash flow from investing activities	304 3)	–3	–3	–3	301	–6
Loans raised	140	51	119	22	389	300
Amortization of debt	–121	–679	–16	–79	–352	–910
Buy-back of shares	–250	–250	–125	–125	–500	–500
Dividend	–675	–602	–675	–602	–675	–602
Cash flow from financing activities	–906	–1,480	–697	–784	–1,138	–1,712
Cash flow for the period	692	4	–407	99	927	239
Cash and cash equivalents at end of the period	2,211	1,282	2,211	1,282	2,211	1,520
1) Of which investment in participations in tenant-owners associations and freehold residential units	–283	–146	–121	–69	–420	–283
2) Of which sale of participations in tenant-owners associations and freehold residential units	212	152	89	65	317	257
3) Of which SEK 310m refers to the sale of participations in Småa AB.

GROUP KEY FIGURES

	JANUARY–JUNE		APRIL–JUNE		JULY–JUNE	FULL-YEAR
%	2017	2016	2017	2016	2016/2017	2016
Operating margin	14.2	11.2	14.3	10.9	14.0	12.6
Return on capital employed					39.0	27.9
Return on equity					43.6	31.2
Debt/equity ratio, times	-	0.2	-	0.2		0.1
Equity/assets ratio	38	36	38	36		40

ACCOUNTING PRINCIPLES

This interim report for the first six months of 2017 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 Parent Company's accounts were prepared in accordance with RFR 2. The accounting policies applied in this interim report are described in the annual report for 2016 on 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–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
Sweden	6,815	6,060	3,492	3,072	13,030	12,275
Norway	1,566	1,487	753	810	3,135	3,056
Finland	261	148	153	68	490	377
Belgium	2	17	1	7	14	29
Denmark	-	15	-	13	0	15
Restatement JM International 1)	7	–391	95	–104	–63	–461
Total	8,651	7,336	4,494	3,866	16,606	15,291

REVENUE BY BUSINESS SEGMENT

		JANUARY–JUNE		APRIL–JUNE		FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	3,718	3,445	1,878	1,741	7,435	7,162
JM Residential Sweden	2,299	1,993	1,153	986	4,126	3,820
JM International	1,829	1,667	907	898	3,639	3,477
JM Property Development	37	62	19	34	117	142
JM Construction	1,015	807	578	447	1,873	1,665
Elimination	–254	–247	–136	–136	–521	–514
Total according to segment reporting	8,644	7,727	4,399	3,970	16,669	15,752
Restatement JM International 1)	7	–391	95	–104	–63	–461
Total according to IFRIC 15	8,651	7,336	4,494	3,866	16,606	15,291

OPERATING PROFIT BY BUSINESS SEGMENT

		JANUARY–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	710	600	363	306	1,405	1,295
JM Residential Sweden	339	219	175	114	600	480
JM International	126	74	67	31	256	204
JM Property Development	24	5	17	–1	49	30
JM Construction	17	21	8	11	39	43
Group-wide expenses	–28	–26	–12	–13	–43	–41
Total according to segment reporting	1,188	893	618	448	2,306	2,011
Restatement JM International 1)	37	–69	25	–27	26	–80
Total according to IFRIC 15	1,225	824	643	421	2,332	1,931

OPERATING MARGIN BY BUSINESS SEGMENT

		JANUARY–JUNE		APRIL–JUNE		FULL-YEAR
%	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	19.1	17.4	19.3	17.6	18.9	18.1
JM Residential Sweden	14.7	11.0	15.2	11.6	14.5	12.6
JM International	6.9	4.4	7.4	3.5	7.0	5.9
JM Construction	1.7	2.6	1.4	2.5	2.1	2.6

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT

	JULY–JUNE	FULL-YEAR
SEK M	2016/2017	2016
JM Residential Stockholm	4,354	4,388
JM Residential Sweden	893	1,085
JM International	2,060	1,997
JM Property Development	623	508

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT

JULY–JUNE	FULL-YEAR
% 2016/2017	2016
JM Residential Stockholm 32.3	29.5
JM Residential Sweden 67.2	44.2
JM International 12.4	10.2
JM Property Development	7.9 5.9

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–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
SEK M	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	873	1,011	375	551	1,420	1,558
JM Residential Sweden	468	482	–29	308	706	720
JM International	165	196	88	165	122	153
JM Property Development	–148	4	–77	–65	–253	–101
JM Construction	–50	–40	–82	–34	22	32

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

CARRYING AMOUNT, SEK M	6/30/2017	6/30/2016	12/31/2016
JM Residential Stockholm	4,074	4,124	4,286
JM Residential Sweden	1,225	1,137	1,350
JM International	1,533	1,194	1,401
JM Property Development	10	35	35
JM Construction	50	44	49
Total	6,892	6,534	7,121

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

NUMBER	6/30/2017	6/30/2016	12/31/2016
JM Residential Stockholm	13,000	12,100	13,000
JM Residential Sweden	10,000	9,600	9,700
JM International	10,700	8,000	8,900
JM Property Development 1)	900	700	900
Total	34,600	30,400	32,500
Of which, recognized in the balance sheet (development properties)
JM Residential Stockholm	7,500	8,100	8,000
JM Residential Sweden	5,700	5,100	5,500
JM International	4,700	4,200	4,300
JM Property Development 1)	100	100	100
Total	18,000	17,500	17,900

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

		JANUARY–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
NUMBER	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	742	800	388	403	1,494	1,552
JM Residential Sweden	669	664	348	345	1,323	1,318
JM International	324	494	135	283	803	973
JM Property Development 1)	-	-	-	-	-	-
Total	1,735	1,958	871	1,031	3,620	3,843

HOUSING STARTS BY BUSINESS SEGMENT

		JANUARY–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
NUMBER	2017	2016	2017	2016	2016/2017	2016
JM Residential Stockholm	754	655	454	283	1,844	1,745
JM Residential Sweden	679	647	336	343	1,368	1,336
JM International	286	470	116	290	693	877
JM Property Development 1)	-	-	-	-	229	229
Total	1,719	1,772	906	916	4,134	4,187

RESIDENTIAL UNITS IN CURRENT PRODUCTION

NUMBER	6/30/2017	6/30/2016	12/31/2016
JM Residential Stockholm	3,598	3,237	3,786
JM Residential Sweden	2,279	2,075	2,240
JM International	1,348	1,431	1,542
JM Property Development 1)	416	338	416
Total	7,641	7,081	7,984

1) Refers to rental units and residential care units.

PROJECT PROPERTIES, GROUP

CARRYING AMOUNT, SEK M	6/30/2017	6/30/2016	12/31/2016
Properties under development	548	453	583
Fully developed rental unit properties	225	-	-
Fully developed commercial properties	18	42	19
Total	791	495	602

DEVELOPMENT PROPERTIES, GROUP

		JANUARY–JUNE		APRIL–JUNE	JULY–JUNE	FULL-YEAR
CARRYING AMOUNT, SEK M	2017	2016	2017	2016	2016/2017	2016
Opening balance at beginning of period	7,121	7,067	6,922	6,769	6,534	7,067
New purchases	737	375	382	125	2,265	1,903
Transferred to production	–927	–894	–388	–344	–1,929	–1,896
Miscellaneous	–39	–14	–24	–16	22	47
Closing balance at the end of the period	6,892	6,534	6,892	6,534	6,892	7,121

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANY

		JANUARY–JUNE
SEK M	2017	2016	2016
Net sales	6,064	5,532	11,149
Production and operating costs	–4,687	–4,426	–8,863
Gross profit	1,377	1,106	2,286
Selling and administrative expenses	–380	–336	–648
Gains/losses on the sale of property	14	0	–23
Operating profit	1,011	770	1,615
Financial income and expenses	301	190	159
Profit before appropriations and tax	1,312	960	1,774
Appropriations	-	-	–147
Profit before tax	1,312	960	1,627
Taxes	–217	–164	–322
Profit for the period	1,095	796	1,305

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK M	6/30/2017	6/30/2016	12/31/2016
Assets
Non-current assets	1,094	1,524	1,247
Current assets	9,015	7,528	8,191
Total assets	10,109	9,052	9,438
Equity and liabilities
Shareholders' equity	2,499	2,159	2,309
Untaxed reserves	2,170	1,975	2,170
Provisions	1,021	873	937
Non-current liabilities	215	311	312
Current liabilities	4,204	3,734	3,710
Total equity and liabilities	10,109	9,052	9,438
Pledged assets	169	169	169
Contingent liabilities	10,352	10,239	9,646

Stockholm, July 14, 2017 JM AB (publ)

The Board of Directors and the CEO certify that the report for the first six months of the year gives a true and fair view of the Parent Company's and the Group's operations, position and results and describes the substantial risks and uncertainties faced by the Parent Company and the companies included in the Group.

Fredrik Persson Chairperson of the Board

Kaj-Gustaf Bergh Olav Line Eva Nygren Member Member Member

Kia Orback Pettersson Åsa Söderström Jerring Thomas Thuresson

Member Member Member

Thomas Mattsson Jan Strömberg Employee- Employeeappointed appointed

Johan Skoglund President and Chief Executive Officer

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

GROUP FIVE-YEAR OVERVIEW

SEK M	2016	2015	2014	2013	2012
Revenue	15,291	13,939	14,216	12,603	12,480
Operating profit	1,931	1,499	1,819	1,523	1,374
Profit before tax	1,871	1,427	1,744	1,464	1,318
Total assets	12,480	11,972	12,375	11,150	11,556
Cash flow from operating activities	1,957	–230	978	898	979
Interest-bearing net liabilities (+)/receivables (–)	435	1,198	–337	–642	–667
Operating margin, %	12.6	10.8	12.8	12.1	11.0
Return on equity, %	31.2	23.7	28.7	25.0	21.9
Equity/assets ratio, %	40	38	37	40	38
Earnings per share, SEK	20.40	14.50	17.00	14.10	11.70
Dividend per share, SEK	9.50 1)	8.25	8.00	7.25	6.75
Number of available building rights	32,500	31,100	29,400	27,700	26,600
Number of residential units sold	3,843	3,770	3,195	3,265	2,952
Number of housing starts	4,187	3,731	3,445	2,953	3,163
Number of residential units in current production	7,984	7,212	6,375	5,609	5,988

GROUP QUARTERLY OVERVIEW

SEK M	2017		2016
INCOME STATEMENT	Q2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	4,494	4,157	4,294	3,661	3,866	3,470
Production and operating costs	–3,583	–3,329	–3,445	–2,988	–3,156	–2,851
Gross profit	911	828	849	673	710	619
Selling and administrative expenses	–282	–246	–252	–200	–266	–217
Gains/losses on the sale of property	14	-	0	37	–23	1
Operating profit	643	582	597	510	421	403
Financial income and expenses	–17	259	–25	–12	–7	–16
Profit before tax	626	841	572	498	414	387
Taxes	–137	–129	–96	–113	–96	–88
Profit for the period	489	712	476	385	318	299
BALANCE SHEET	6/30	3/31	12/31	9/30	6/30	3/31
ASSETS
Non-current assets	213	215	230	233	219	212
Project properties	791	688	602	554	495	437
Development properties	6,892	6,922	7,121	6,547	6,534	6,769
Participations in tenant-owners associations, etc. Current receivables	269 3,132	205 2,801	233 2,774	240 3,308	247 3,196	233 3,027
Cash and cash equivalents	2,211	2,619	1,520	1,177	1,282	1,182
Total current assets Total assets	13,295 13,508	13,235 13,450	12,250 12,480	11,826 12,059	11,754 11,973	11,648 11,860
EQUITY AND LIABILITIES
Shareholders' equity	5,200	5,526	4,951	4,527	4,263	4,719
Non-current interest-bearing liabilities	223	259	282	352	343	375
Other non-current liabilities	150	150	168	169	152	151
Non-current provisions	2,325	2,267	2,236	2,330	2,221	2,083
Total non-current liabilities	2,698	2,676	2,686	2,851	2,716	2,609
Current interest-bearing liabilities	435	334	438	267	368	408
Other current liabilities	5,066	4,813	4,304	4,312	4,532	4,035
Current provisions	109	101	101	102	94	89
Total current liabilities	5,610	5,248	4,843	4,681	4,994	4,532
Total equity and liabilities	13,508	13,450	12,480	12,059	11,973	11,860
CASH FLOW STATEMENT	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Cash flow from operating activities	293	1,001	368	102	886	601
Cash flow from investing activities	–3	307	–1	–2	–3	0
Cash flow from financing activities	–697	–209	–25	–207	–784	–696
Total cash flow for the period	–407	1,099	342	–107	99	–95
Cash and cash equivalents at end of the period	2,211	2,619	1,520	1,177	1,282	1,182
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 the period	–778	435	737	656	741	1,198
Change in interest-bearing net liabilities/receivables	504	–1,213	–302	81	–85	–457
Interest-bearing net liabilities(+)/receivables(–)
at end of the period	–274	–778	435	737	656	741
DEVELOPMENT PROPERTIES	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of period	6,922	7,121	6,547	6,534	6,769	7,067
New purchases	382	355	966	562	125	250
Transferred to production	–388	–539	–408	–594	–344	–550
Miscellaneous	–24	–15	16	45	–16	2
Carrying amount at end of period	6,892	6,922	7,121	6,547	6,534	6,769
KEY FIGURES	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, %	14.3	14.0	13.9	13.9	10.9	11.6
Debt/equity ratio, times	-	-	0.1	0.2	0.2	0.2
Equity/assets ratio, %	38	41	40	38	36	40
Earnings per share, SEK	6.90	10.00	6.60	5.30	4.40	4.10
Number of available building rights	34,600	33,600	32,500	30,900	30,400	30,800
Number of residential units sold	871	864	925	960	1,031	927
Number of housing starts	906	813	1,357	1,058	916	856
Number of residential units in current production	7,641	7,901	7,984	7,793	7,081	7,550

BUSINESS SEGMENT QUARTERLY OVERVIEW

SEK M	2017 2016
JM RESIDENTIAL STOCKHOLM	Q 2	Q 1	Q 4	Q3	Q 2	Q 1
Revenue	1,878	1,840	2,018	1,699	1,741	1,704
Operating profit 1)	363	347	387	308	306	294
Operating margin, %	19.3	18.9	19.2	18.1	17.6	17.3
Average operating capital	4,354	4,345	4,388	4,382	4,287	4,229
Return on operating capital, % 2)	32.3	31.0	29.5	27.3	26.8	26.2
Operating cash flow	375	498	367	180	551	460
Carrying amount, development properties	4,074	4,121	4,286	4,117	4,124	4,310
Number of available building rights	13,000	12,800	13,000	12,400	12,100	12,300
Number of residential units sold	388	354	399	353	403	397
Number of housing starts	454	300	634	456	283	372
Number of residential units in current production 1) Of which property sales	3,598 6	3,714 -	3,786 -	3,564 -	3,237 -	3,801 -
JM RESIDENTIAL SWEDEN	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,153	1,146	997	830	986	1,007
Operating profit 1)	175	164	126	135	114	105
Operating margin, %	15.2	14.3	12.6	16.3	11.6	10.4
Average operating capital	893	967	1,085	1,150	1,175	1,249
Return on operating capital, % 2)	67.2	55.7	44.2	39.7	33.1	28.3
Operating cash flow	–29	497	180	58	308	174
Carrying amount, development properties	1,225	1,322	1,350	1,096	1,137	1,189
Number of available building rights	10,000	9,800	9,700	9,400	9,600	9,600
Number of residential units sold	348	321	343	311	345	319
Number of housing starts	336	343	358	331	343	304
Number of residential units in current production	2,279	2,169	2,240	2,300	2,075	1,962
1) Of which property sales	-	-	-	37	0	-
JM INTERNATIONAL	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	907	922	936	874	898	769
Operating profit 1)	67	59	67	63	31	43
Operating margin, %	7.4	6.4	7.2	7.2	3.5	5.6
Average operating capital	2,060	2,034	1,997	1,993	2,013	2,093
Return on operating capital, % 2)	12.4	10.8	10.2	9.2	7.9	8.4
Operating cash flow	88	77	–114	71	165	31
Carrying amount, development properties	1,533	1,394	1,401	1,255	1,194	1,191
Carrying amount, project properties	12	13	13	38	36	35
Number of available building rights	10,700	10,100	8,900	7,900	8,000	8,200
Number of residential units sold	135	189	183	296	283	211
Number of housing starts	116	170	136	271	290	180
Number of residential units in current production 1) Of which property sales	1,348 -	1,602 -	1,542 0	1,591 -	1,431 –23	1,449 -
JM PROPERTY DEVELOPMENT	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue Operating profit 1)	19 17	18 7	46 18	34 7	34 –1	28 6
Average operating capital	623	550	508	455	405	361
Return on operating capital, % 2)	7.9	5.6	5.9	7.7	6.9	8.0
Operating cash flow	–77	–71	–49	–56	–65	69
Carrying amount, development properties	10	35	35	35	35	35
Carrying amount, project properties	779	675	589	516	459	402
Number of available building rights 3)	900	900	900	1,200	700	700
Number of residential units sold 3)	-	-	-	-	-	-
Number of housing starts 3)	-	-	229	-	-	-
Number of residential units in current production 3)	416	416	416	338	338	338
1) Of which property sales	8	-	-	-	-	1
3) Refers to rental units and residential care units.
JM CONSTRUCTION	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	578	437	454	404	447	360
Operating profit	8	9	10	12	11	10
Operating margin, %	1.4	2.1	2.2	3.0	2.5	2.8
Operating cash flow	–82	32	47	25	–34	–6
JM OTHER	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination)	–136	–118	–155	–112	–136	–111
Operating profit (Group-wide expenses)	–12	–16	–11	–4	–13	–13
RESTATEMENT JM INTERNATIONAL	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	95	–88	–2	–68	–104	–287
Operating profit	25	12	0	–11	–27	–42

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 seeks to promote long-term sustainability management in all its operations. Annual sales total approximately SEK 17 billion and the company has approximately 2,500 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 CET on July 14, 2017.

FOR MORE INFORMATION PLEASE CONTACT:

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

FINANCIAL CALENDAR

October 26, 2017 Interim Report January – September

PRESS RELEASES, Q2 2017

April 20	JM Construction building residential units in Tyresö,
	Stockholm
April 27	Interim Report January – March 2017
April 27	Annual General Meeting at JM AB
April 27	JM's Board of Directors decided on buy-back of shares
May 3	JM selling Bergrumsgaraget in Liljeholmen, Stockholm
May 31	Conversion of convertible debentures in to shares in JM
	AB (publ)
June 22	JM selling and acquiring property in Österåker,
	Stockholm
June 30	JM starting production on Kajplats 6 and Kajplats
	Kvarnholmen in Stockholm

JM's Annual Reports, Interim Reports and other financial information are available at 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