JM — Interim / Quarterly Report 2018

Apr 27, 2018

JM GROUP INTERIM REPORT JANUARY – MARCH 2018

CAUTIOUS MARKET FOR NEW PRODUCTION IN STOCKHOLM – STABILIZATION OF HOUSE PRICES IN SWEDEN AND NORWAY

JANUARY – MARCH 2018

Revenue decreased to SEK 4,054m (4,245) and operating profit decreased to SEK 528m (570). The operating margin amounted to 13.0 percent (13.4)

Profit before tax decreased to SEK 512m (829) 1). Profit after tax decreased to SEK 399m (706) 1)

Return on equity for the past twelve months was 30.5 percent (36.1) 1). Earnings per share for the first quarter decreased to SEK 5.70 (9.90) 1)

Consolidated cash flow including net investment in properties was SEK –18m (1,001)

The number of residential units sold decreased to 480 (864) and housing starts decreased to 570 (813)

1) Including gains of SEK 275m from the sale of the participations in Småa AB in 2017

ACCORDING TO SEGMENT REPORTING

	JANUARY–MARCH			APR.–MAR. FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue	4,054	4,245	16,817	17,008
Operating profit	528	570	2,327	2,369
Operating margin, %	13.0	13.4	13.8	13.9
Profit before tax	512	829	2,262	2,579
Cash flow from operating activities	–18	1,001	994	2,013
Return on equity, %			30.5	38.7
Equity/assets ratio, %	40	41		40
Earnings per share, SEK	5.70	9.90	26.80	31.00
Number of residential units sold	480	864	2,716	3,100
Number of housing starts	570	813	3,630	3,873
Number of residential units in current production	7,672	7,901		8,200
Revenue according to IFRS	3,825	4,157	16,943	17,275
Operating profit according to IFRS	507	582	2,381	2,456
Earnings per share according to IFRS, SEK	5.50	10.00	27.40	31.90

IFRS 15 Revenue from Contracts with Customers is applied to the consolidated income statement and balance sheet, which 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 the percentage of completion method. The consolidated statements in accordance with IFRS are presented on pages 21-22. For definitions of key financial figures, see the document entitled "Definitions of key financial figures" at jm.se/investors.

Unless otherwise specified, the analysis and comments in this interim report are based on JM's segment reporting.

Cover photo: Fyrtornet, Dalénum, Lidingö

GROUP

"The housing market in Stockholm continued to be cautious during the first quarter, but prices stabilized. The cautious market applies in particular to new production of homes with a long time until occupancy. Lower sales and a lower number of housing starts in Stockholm decreased the current production volume during the quarter. We are planning to

increase the number of housing starts during the year, assuming that the housing market stabilizes and that planning processes are stable. Housing starts in Stockholm during the first quarter were supported by a normal level of reservations, where profitability continues to be good in the current production volume.

The housing operations in the rest of Sweden are showing a positive development with good profitability levels in a market that continues to be stable, and prices remained more or less the same during the first quarter.

In Norway, the level of activity on the housing market was good with a slight increase in prices, and the housing market in Finland was stable during the first quarter.

We have noted an increase in the supply of residential development properties in Stockholm, and JM has a very good position to take advantage of the possibilities for acquisitions that may arise. In the rest of Sweden, competition for land is tough. JM's strong financial position also supports our decision to prioritize the start of new housing projects.

One of the housing starts is the high-rise Fyrtornet, Lidingö's new landmark in Dalénum, which will have a panorama view of Saltsjön and Djurgården. With 22 floors and glassed-in corner balconies, the building will have a beautiful design. The project also includes a sister building with eight floors. We will start production on 129 residential units here in this beautiful location next to the water and close to the commuter ferry to Nybroplan in downtown Stockholm.

In an excellent location in Gustavsberg, Värmdö, we started the first phase with 56 senior housing units in the Strandviks Flyglar project. We will build four buildings here in a park environment next to the bay, Farstaviken, with a view of the harbor.

As of 2018, all JM residential units that enter into the pre-construction phase will be certified in accordance with the Nordic Swan Ecolabel. The idea is that the efforts we have made over a period of many years to create a healthy environment and sustainable development should be more visible for housing customers. We are thus the first Nordic construction company to certify the entire Group's production of its own residential units in accordance with the Nordic Swan Ecolabel. The Nordic Swan Ecolabel verifies that the buildings are energy-efficient, have good ventilation and are built with moisture-resistant materials that are free from substances harmful to the environment and people's health. This is a natural step in our efforts to be a market leader in sustainable housing.

We are well-positioned with a good project portfolio that we continue to improve for the housing of the future, at the same time as our strong balance sheet offers us freedom of action."

Johan Skoglund, President and CEO

Strandviks Flyglar, Gustavsberg, Värmdö

MARKET, SALES AND HOUSING STARTS JANUARY – MARCH 2018

The housing market in Stockholm continued to be cautious during the first quarter, but prices stabilized. Lower sales and a lower number of housing starts decreased the current production volume during the quarter. Housing starts in Stockholm during the quarter were supported by a normal level of reservations, and profitability continues to be good in the current production volume.

The housing operations in the rest of Sweden are showing a positive development with good profitability levels in a market that continues to be stable, and prices remained more or less the same during the first quarter.

In Norway, the level of activity on the housing market was good with a slight increase in prices, and the housing market in Finland was stable during the first quarter.

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 480 (864) 1). The percentage of sold or reserved homes in relation to current production amounts to 61 percent (78), with an interval of 60-65 percent considered normal. JM Residential Stockholm sold 117 residential units (354), JM Residential Sweden sold 244 (321), JM International sold 119 (189) and JM Property Development sold 0 (0).

The number of housing starts amounted to 570 (813) 2). JM Residential Stockholm started production on 215 residential units (300), JM Residential Sweden on 286 (343), JM International on 69 (170) and JM Property Development on 0 (0).

In addition to demand, planning processes continue to be an important criterion for the rate of housing starts.

The number of residential units in current production amounted to 7,672 (7,901), of which 553 are rental units and residential care units (416).

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

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

	JANUARY–MARCH		APRIL–MARCH	FULL-YEAR
OPERATING PROFIT BY BUSINESS SEGMENT, SEK M	2018	2017	2017/2018	2017
JM Residential Stockholm	274	347	1,365	1,438
JM Residential Sweden	213	164	718	669
JM International	53	58	266	271
JM Property Development	2	7	22	27
JM Construction	0	10	1	11
Group-wide expenses	–14	–16	–45	–47
Total	528	570	2,327	2,369
Of which property sales	11	-	25	14

OPERATING MARGIN BY BUSINESS SEGMENT, %		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
JM Residential Stockholm	18.6	18.9	20.1	20.1
JM Residential Sweden	16.8	14.3	16.2	15.5
JM International	7.5	7.2	8.4	8.3
JM Construction	0.0	1.8	0.0	0.4

1) According to segment reporting

REVENUE, OPERATING PROFIT AND OPERATING MARGIN JANUARY – MARCH 2018

Consolidated revenue according to segment reporting for the first quarter decreased to SEK 4,054m (4,245). Revenue restated according to IFRS decreased to SEK 3,825m (4,157).

Operating profit according to segment reporting decreased to SEK 528m (570) and the operating margin amounted to 13.0 percent (13.4). Operating profit restated according to IFRS decreased to SEK 507m (582). The restatement is related to JM International and had an effect on earnings of SEK –21m (12).

During the first quarter properties were sold for SEK 69m (0) with gains of SEK 11m (0).

Rental income from JM's project properties increased to SEK 14m (8). Net rental income increased to SEK 8m (4).

RESIDENTIAL BUILDING RIGHTS JANUARY – MARCH 2018

The number of available building rights at the end of the first quarter amounted to 34,900 (33,600), of which 19,400 (18,500) are recognized in the balance sheet. Capital tied up in building rights (development properties in the balance sheet) for residential units increased to SEK 8,565m (6,837).

JM acquired development properties for residential units during the first quarter for SEK 1,396m (355), of which SEK 948m relates to JM Residential Stockholm, SEK 109m to JM Residential Sweden and SEK 339m to JM International.

RESIDENTIAL UNITS IN CURRENT PRODUCTION	3/31/2018	3/31/2017	12/31/2017
Number of residential units in current production 1) 2)	7,672	7,901	8,200
Percentage of sold residential units in current production, % 3)	54	66	58
Percentage reserved residential units in current production, %	7	12	7
Percentage sold and reserved residential units in current production, %	61	78	65
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	553	416	553
Including residential units in projects where costs incurred are only reported as project properties under construction	553	416	553
2) Beginning with production start-up through final occupancy according to plan.

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

UNSOLD UNITS	3/31/2018	3/31/2017	12/31/2017
Completed production, number of unsold units 1)	96	66	72
The number of unsold residential units in the balance sheet reported as
"Participations in tenant-owners associations, etc."	79	52	82

1) After final occupancy according to plan.

1) Including rental units and residential care units in JM Property Development – not included in percentage of sold/reserved

FINANCIAL ITEMS

JANUARY – MARCH 2018

Net financial items remained the same compared to the previous year taking into account the sale in 2017 of the participations in Småa AB.

Total interest-bearing loans according to segment reporting was SEK 1,820m (1,845), of which the provision for pensions comprised SEK 1,264m (1,252). At the end of the first quarter, the average interest rate for the total interest-bearing loan stock including pension liabilities was 2.5 percent (2.4). The average term for fixed-rate loans excluding the pension liability was 0.2 years (0.4).

Consolidated available liquidity was SEK 5,364m (5,419). Aside from cash and cash equivalents of SEK 2,564m (2,619), 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 2.4 years (1.2).

Interest-bearing net receivables according to segment reporting totaled SEK 748m (778) at the end of the first quarter. Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 1,375m (463). Of these liabilities, SEK 675m (313) were current.

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

SEK M		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
Financial income 1)	1	275	5	279
Financial expenses	–17	–16	–70	–69
Financial income and expenses	–16	259	–65	210
1) Of which gains from the sale of participations in Småa AB	-	275	-	275

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2018	2017	2017/2018	2017
Interest-bearing net liabilities(+)/receivables(–)
at beginning of the period	–790	435	–778	435
Change in interest-bearing net liabilities/receivables	42	–1,213	30	–1,225
Interest-bearing net liabilities(+)/receivables(–)
at end of the period	–748	–778	–748	–790

6 JM GROUP INTERIM REPORT JANUARY – MARCH 2018

CASH FLOW

JANUARY – MARCH 2018

Cash flow from operating activities according to segment reporting was SEK –18m (1,001) during the first quarter. Net investments in development properties resulted in a cash flow of SEK –318m (122). Holdings of repurchased residential units resulted in a cash flow of SEK –13m (–39). Consolidated cash flow attributable to project properties (sales minus investment) during the first quarter was SEK –118m (–86).

RISKS AND UNCERTAINTIES

JM's risk and risk management policies are presented in the 2017 Annual Report on pages 30-33. No significant changes have occurred to change these reported risks.

BUY-BACK AND HOLDINGS OF OWN SHARES

After the 2017 Annual General Meeting, 1,476,421 shares were bought back for SEK 375m. No acquisitions were made during the first quarter of 2018.

The number of outstanding shares, excluding holdings of own shares, at March 31, 2018, totals 69,583,262.

PERSONNEL

The number of employees at the end of the first quarter was 2,570 (2,444). The number of wage-earners was 1,002 (1,008) and the number of salaried employees was 1,568 (1,436). 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 did not change during the first quarter. The supply of homes continued to be high, and in particular in some local markets.

Competition for well-situated land for housing is judged to be relatively low at the same time as the supply of properties for housing development is relatively high. However, prices of building rights are still at a level that requires selective acquisition.

The housing market in Stockholm continued to be cautious during the first quarter, particularly with regard to new production.

Customers are showing strong interest in JM's projects, but are taking a cautious approach to signing contracts early in the process. Residential units available for sale in the business segment largely have planned occupancy in 2019 and 2020.

Housing starts in Stockholm during the first quarter were supported by a normal level of reservations, and profitability continues to be good in the current production volume. The plan is to increase the number of housing starts during the year, assuming that the housing market stabilizes and that planning processes are stable.

Business segment revenue decreased to SEK 1,475m (1,840). The lower revenue in the first quarter is due to lower sales, a lower number of housing starts, and a low level of land transferred to projects during the quarter. The operating profit was SEK 274m (347). Profit was burdened by lower sales, at the same time as completed projects had a positive effect on profit during the quarter. The operating margin was 18.6 percent (18.9).

Cash flow during the first quarter is in balance taking into consideration the increase in development properties.

Production was started in the first quarter on 215 residential units in apartment buildings in Lidingö, Stockholm and Värmdö.

During the first quarter, JM purchased building rights corresponding to 777 residential units in Solna, Stockholm and Täby.

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue	1,475	1,840	6,786	7,151
Operating profit 1)	274	347	1,365	1,438
Operating margin, %	18.6	18.9	20.1	20.1
Average operating capital			4,663	4,450
Return on operating capital, %			29.3	32.3
Operating cash flow	–77	498	1,028	1,603
Carrying amount, development properties	5,229	4,121		4,406
Number of available building rights	13,300	12,800		13,400
Number of residential units sold	117	354	915	1,152
Number of housing starts	215	300	1,358	1,443
Number of residential units in current production	3,510	3,714		3,842
Number of employees	926 2)	854		877
1) Of which property sales	-	-	6	6

2) Of which 42 employees who were previously organizationally placed under JM Construction

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.

Average prices on the existing home market in the business segment stabilized during the first quarter following the decline in the fall of 2017. Two exceptions are Uppsala and Linköping, where prices continued to decrease slightly. The supply on certain local markets continues to be large.

Competition for land for housing is tough. Interest in JM's projects is stable, and customers' willingness to sign a contract early in the process is at a normal level.

The business segment's revenue increased to SEK 1,269m (1,146), and operating profit increased to SEK 213m (164). The operating margin increased to 16.8 percent (14.3). The profit and the margin improved as a result of good demand and an increase in prices in recent years.

Cash flow during the first quarter is in balance taking into consideration the decrease in development properties and the increase in working capital.

Production was started in the first quarter on 286 residential units in apartment buildings in Lund, Gothenburg, Örebro and Uppsala.

During the first quarter, JM purchased building rights corresponding to 350 residential units in Gothenburg, Linköping and Uppsala.

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue	1,269	1,146	4,432	4,309
Operating profit 1)	213	164	718	669
Operating margin, %	16.8	14.3	16.2	15.5
Average operating capital			897	892
Return on operating capital, %			80.0	75.0
Operating cash flow	232	497	351	616
Carrying amount, development properties	1,394	1,322		1,540
Number of available building rights	10,200	9,800		10,100
Number of residential units sold	244	321	1,225	1,302
Number of housing starts	286	343	1,354	1,411
Number of residential units in current production	2,210	2,169		2,351
Number of employees	592	581		590
1) Of which property sales	0	-	0	-

JM INTERNATIONAL

The JM International business segment develops residential projects primarily in Norway and Finland. Revenue and profit for the business segment is reported according to the percentage of completion method. Contracting operations are also conducted to a limited extent in Norway, and as of 2018 they are reported in the JM Construction business segment. Comparative figures have been restated.

Business segment revenue decreased to SEK 710m (807) and operating profit decreased to SEK 53m (58). The operating margin was 7.5 percent (7.2).

A temporary decrease in working capital strengthened cash flow during the first quarter.

NORWAY

Prices on the existing home market in Norway increased slightly during the first quarter, and the level of activity has been good. The time to closing is longer than it has been in previous years.

JM Norway's revenue decreased to SEK 604m (698) and operating profit decreased to SEK 50m (56). The operating margin was 8.3 percent (8.0).

During the first quarter, 84 residential units (135) were sold and production began on 69 units (129). Housing starts during the first quarter consist of residential units in apartment buildings in Lillestrøm outside of Oslo and single-family homes in Horten and Sandefjord. The number of residential units in current production amounted to 1,138 (1,327).

The low level of housing starts is in line with the annual plan, and this number will increase during the year assuming a stable market and stable planning conditions.

During the first quarter, JM purchased building rights corresponding to 570 residential units in the Oslo region and 24 in Bergen.

Available building rights correspond to 7,700 residential units (7,500).

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue	710	807	3,165	3,262
- of which JM Norway	604	698	2,683	2,777
Operating profit 1)	53	58	266	271
- of which JM Norway	50	56	257	263
Operating margin, %	7.5	7.2	8.4	8.3
- of which JM Norway	8.3	8.0	9.6	9.5
Average operating capital			2,273	2,175
Return on operating capital, %			11.7	12.5
Operating cash flow	92	78	133	119
Carrying amount, development properties	1,932	1,394		1,545
Carrying amount, project properties	8	13		7
Number of available building rights	10,600	10,100		10,500
Number of residential units sold	119	189	576	646
Number of housing starts	69	170	781	882
Number of residential units in current production	1,399	1,602		1,454
Number of employees	417	373		406
1) Of which property sales	11	-	11	0

FINLAND

The housing market in the Helsinki region was stable during the first quarter. The housing market is in balance and activity is good.

During the first quarter, 32 residential units (53) were sold and production began on 0 units (41). The number of residential units in current production amounted to 261 (275).

During the quarter, JM purchased building rights corresponding to 0 residential units (105).

Available building rights correspond to 2,700 residential units (2,400).

BELGIUM

JM closed its operations in Belgium in the first quarter of 2017. JM is still the owner of one development property and two residential units that are for sale. During the first quarter, 3 residential units (1) 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. This business segment also includes JM@home as of January 1, 2018, which offers economic and technical management services to tenant-owners associations as well as home services.

Business segment revenue decreased to SEK 15m (18), of which rental income was SEK 14m (8). Operating profit was SEK 2m (7). The operating profit was burdened by start-up costs for the new business operations, JM@home. Net rental income for project properties increased to SEK 8m (3).

Cash flow during the first quarter 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 was 91 percent. Within the Bolinder area in Kallhäll, Järfälla, the occupancy rate in the buildings that will not be demolished was 94 percent.

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

Production is underway on four rental projects in JM's own balance sheet: the Tjärtunnan project in Stureby, 187 residential units with occupancy in 2018; the Spaken project in Hägernäs, Täby, 136 residential units with occupancy planned for 2018/2019; the Alphyddan project in Sickla, Nacka, 93 student apartments with occupancy planned for 2018; and Alba Lilium, Bredäng, 137 residential units with occupancy planned for 2019.

	JANUARY–MARCH		APRIL–MARCH	FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue	15	18	57	60
Operating profit 1)	2	7	22	27
Average operating capital			910	800
Return on operating capital, %			2.4	3.4
Operating cash flow	–109	–71	–454	–416
Carrying amount, development properties	10	35		10
Carrying amount, project properties	1,185	675		1,067
Number of available building rights 2)	800	900		800
Number of residential units sold 2)	-	-	-	-
Number of housing starts 2)	-	-	137	137
Number of residential units in current production 2)	553	416		553
Number of employees	47	30		35
1) Of which property sales	-	-	8	8

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 Greater Stockholm and Oslo. Contracting operations conducted in Norway are reported in the JM Construction business segment as of January 1, 2018. Comparative figures have been restated.

Demand in the contracting market in Stockholm is at a good level. Both the building and civil engineering markets are stable, although there is tough competition for the assignments. Demand in the contracting market in Oslo is also at a good level. Orders are good in the business segment, with a large number of projects in current production.

Business segment revenue increased to SEK 698m (552), of which the operations in Norway amounted to SEK 144m (115), and the operating profit decreased to SEK 0m (10). The profit was affected by a negative revaluation in current projects in the Swedish operations. A long-term project is underway in the business segment to raise profitability.

Cash flow is burdened by a temporary increase in working capital.

The business segment received a number of assignments during

the first quarter, of which the largest was land work in the future freight harbor at Stockholm Norvik in Nynäshamn for Ports of Stockholm. JM Construction also entered into a five-year cooperation agreement with Riksbyggen.

The largest ongoing projects are a new operational area at Arlanda Airport (Swedavia), new production of a school (Vallentuna Municipality), new production of apartment buildings in Norra Djurgårdsstaden (HSB and Riksbyggen) and new production of apartment buildings in Tyresö (Småa and Riksbyggen). The largest ongoing project in the Norwegian operations is the new production of apartments in Strømmen (JM Norge AS).

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
SEK M	2018	2017	2017/2018	2017
Revenue 1)	698	552	2,897	2,751
Operating profit	0	10	1	11
Operating margin, %	0.0	1.8	0.0	0.4
Operating cash flow	–154	31	–99	86
Carrying amount, development properties	42	50		42
Number of employees	432	464		462
1) Of which internal	113	118	520	525

GROUP – SEGMENT REPORTING

CONDENSED CONSOLIDATED INCOME STATEMENT

		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2018	2017	2017/2018	2017
Revenue	4,054	4,245	16,817	17,008
Production and operating costs	–3,265	–3,429	–13,484	–13,648
Gross profit	789	816	3,333	3,360
Selling and administrative expenses	–272	–246	–1,031	–1,005
Gains/losses on the sale of property	11	-	25	14
Operating profit	528	570	2,327	2,369
Financial income and expenses	–16	259	–65	210
Profit before tax	512	829	2,262	2,579
Taxes	–113	–123	–375	–385
Profit for the period	399	706	1,887	2,194
Other comprehensive income	87	–14	91	–10
Comprehensive income for the period	486	692	1,978	2,184
Earnings per share 1), diluted, SEK	5.70	9.90	26.80	31.00
Average number of shares, diluted	69,800,801	71,520,740	70,431,773	70,844,023

1) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO SEGMENT REPORTING, SEK M	3/31/2018	3/31/2017	12/31/2017
ASSETS
Non-current assets	221	215	209
Project properties	1,193	688	1,074
Development properties	8,607	6,922	7,543
Participations in tenant-owners associations, etc.	309	205	309
Current receivables 1)	3,828	3,173	3,698
Cash and cash equivalents	2,564	2,619	2,572
Total current assets	16,501	13,607	15,196
Total assets	16,722	13,822	15,405
EQUITY AND LIABILITIES 2)
Shareholders' equity	6,664	5,725	6,178
Non-current interest-bearing liabilities	220	259	203
Other non-current liabilities	700	150	273
Non-current provisions	2,846	2,321	2,656
Total non-current liabilities	3,766	2,730	3,132
Current interest-bearing liabilities	336	334	332
Other current liabilities	5,831	4,932	5,654
Current provisions	125	101	109
Total current liabilities	6,292	5,367	6,095
Total equity and liabilities	16,722	13,822	15,405
1) Of which receivables from property sales	78	60	83
2) Of which liabilities for property acquisition	1,448	580	794

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		JANUARY–MARCH
ACCORDING TO SEGMENT REPORTING, SEK M	2018	2017	2017
Opening balance at beginning of period	6,178	5,158	5,158
Total comprehensive income for the period	486	692	2,184
Dividend	-	-	–675
Conversion of convertible loan	-	0	10
Equity component of convertible debentures	-	-	1
Buy-back of shares	-	–125	–500
Closing balance at the end of the period	6,664	5,725	6,178

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	JANUARY–MARCH		APRIL–MARCH	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2018	2017	2017/2018	2017
Cash flow from operating activities before change in
working capital and taxes	756	656	3,195	3,095
Paid tax	–261	–99	–523	–361
Investment in development properties, etc. 1)	–949	–591	–2,852	–2,494
Payment on account for development properties, etc. 2)	618	674	1,982	2,038
Investment in project properties	–118	–86	–522	–490
Sale of project properties	-	-	6	6
Change in current liabilities/receivables	–64	447	–292	219
Cash flow from operating activities	–18	1,001	994	2,013
Cash flow from investing activities	–1	307 3)	–8	300 3)
Loans raised	49	21	242	214
Amortization of debt	–48	–105	–241	–298
Buy-back of shares	-	–125	–375	–500
Dividend	-	-	–675	–675
Cash flow from financing activities	1	–209	–1,049	–1,259
Cash flow for the period	–18	1,099	–63	1,054
Cash and cash equivalents at end of the period	2,564	2,619	2,564	2,572
1) Of which investment in participations in tenant-owners associations and freehold residential units	–180	–162	–593	–575
2) Of which the sale of participations in tenant-owners associations and freehold residential units	167	123	539	495
3) Of which SEK 310m refers to the sale of the participations in Småa AB.

GROUP KEY FIGURES

ACCORDING TO SEGMENT REPORTING, %		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
Operating margin	13.0	13.4	13.8	13.9
Return on capital employed			30.5	38.7
Return on equity			29.1	35.1
Debt/equity ratio, multiple	-	-		-
Equity/assets ratio	40	41		40

ACCORDING TO SEGMENT REPORTING

REVENUE BY COUNTRY

SEK M		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
Sweden	3,215	3,323	13,171	13,279
Norway	733	813	3,164	3,244
Finland	94	108	468	482
Belgium	12	1	14	3
Total	4,054	4,245	16,817	17,008

REVENUE BY BUSINESS SEGMENT

		JANUARY–MARCH		FULL-YEAR
SEK M	2018	2017	2017/2018	2017
JM Residential Stockholm	1,475	1,840	6,786	7,151
JM Residential Sweden	1,269	1,146	4,432	4,309
JM International	710	807	3,165	3,262
JM Property Development	15	18	57	60
JM Construction	698	552	2,897	2,751
Elimination	–113	–118	–520	–525
Total	4,054	4,245	16,817	17,008

OPERATING PROFIT BY BUSINESS SEGMENT

		JANUARY–MARCH		FULL-YEAR
SEK M	2018	2017	2017/2018	2017
JM Residential Stockholm	274	347	1,365	1,438
JM Residential Sweden	213	164	718	669
JM International	53	58	266	271
JM Property Development	2	7	22	27
JM Construction	0	10	1	11
Group-wide expenses	–14	–16	–45	–47
Total	528	570	2,327	2,369

OPERATING MARGIN BY BUSINESS SEGMENT

		JANUARY–MARCH		FULL-YEAR
%	2018	2017	2017/2018	2017
JM Residential Stockholm	18.6	18.9	20.1	20.1
JM Residential Sweden	16.8	14.3	16.2	15.5
JM International	7.5	7.2	8.4	8.3
JM Construction	0.0	1.8	0.0	0.4

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT

APRIL–MARCH	FULL-YEAR
SEK M 2017/2018	2017
JM Residential Stockholm 4,663	4,450
JM Residential Sweden	897 892
JM International 2,273	2,175
JM Property Development	910 800

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT

	APRIL–MARCH	FULL-YEAR
%	2017/2018	2017
JM Residential Stockholm	29.3	32.3
JM Residential Sweden	80.0	75.0
JM International	11.7	12.5
JM Property Development	2.4	3.4

ACCORDING TO SEGMENT REPORTING

OPERATING CASH FLOW BY BUSINESS SEGMENT

SEK M	JANUARY–MARCH		APRIL–MARCH	FULL-YEAR
	2018	2017	2017/2018	2017
JM Residential Stockholm	–77	498	1,028	1,603
JM Residential Sweden	232	497	351	616
JM International	92	78	133	119
JM Property Development	–109	–71	–454	–416
JM Construction	–154	31	–99	86

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

CARRYING AMOUNT, SEK M	3/31/2018	3/31/2017	12/31/2017
JM Residential Stockholm	5,229	4,121	4,406
JM Residential Sweden	1,394	1,322	1,540
JM International	1,932	1,394	1,545
JM Property Development	10	35	10
JM Construction	42	50	42
Total	8,607	6,922	7,543

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

NUMBER	3/31/2018	3/31/2017	12/31/2017
JM Residential Stockholm	13,300	12,800	13,400
JM Residential Sweden	10,200	9,800	10,100
JM International	10,600	10,100	10,500
JM Property Development 1)	800	900	800
Total	34,900	33,600	34,800
Including those carried in the balance sheet (development properties)
JM Residential Stockholm	8,000	7,900	7,800
JM Residential Sweden	6,100	5,700	6,100
JM International	5,100	4,800	4,600
JM Property Development 1)	200	100	200
Total	19,400	18,500	18,700

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

NUMBER		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
JM Residential Stockholm	117	354	915	1,152
JM Residential Sweden	244	321	1,225	1,302
JM International	119	189	576	646
JM Property Development 1)	-	-	-	-
Total	480	864	2,716	3,100

HOUSING STARTS BY BUSINESS SEGMENT

NUMBER		JANUARY–MARCH		FULL-YEAR
	2018	2017	2017/2018	2017
JM Residential Stockholm	215	300	1,358	1,443
JM Residential Sweden	286	343	1,354	1,411
JM International	69	170	781	882
JM Property Development 1)	-	-	137	137
Total	570	813	3,630	3,873

RESIDENTIAL UNITS IN CURRENT PRODUCTION

NUMBER	3/31/2018	3/31/2017	12/31/2017
JM Residential Stockholm	3,510	3,714	3,842
JM Residential Sweden	2,210	2,169	2,351
JM International	1,399	1,602	1,454
JM Property Development 1)	553	416	553
Total	7,672	7,901	8,200

1) Refers to rental units and residential care units.

ACCORDING TO SEGMENT REPORTING

PROJECT PROPERTIES, GROUP

CARRYING AMOUNT, SEK M	3/31/2018	3/31/2017	12/31/2017
Properties under development	955	451	837
Completed rental unit properties	224	218	224
Completed commercial properties	14	19	13
Total	1,193	688	1,074

DEVELOPMENT PROPERTIES, GROUP

		JANUARY–MARCH		FULL-YEAR
CARRYING AMOUNT, SEK M	2018	2017	2017/2018	2017
Opening balance at beginning of period	7,543	7,121	6,922	7,121
New purchases	1,396	355	3,058	2,017
Transferred to production	–375	–539	–1,370	–1,534
Other	43	–15	–3	–61
Closing balance at the end of the period	8,607	6,922	8,607	7,543

GROUP FIVE-YEAR OVERVIEW

ACCORDING TO SEGMENT REPORTING, SEK M	2017	2016	2015	2014	2013
Revenue	17,008	15,752	14,447	13,869	12,652
Operating profit	2,369	2,011	1,590	1,716	1,576
Profit before tax	2,579	1,951	1,518	1,641	1,517
Total assets	15,405	12,848	12,230	12,545	11,394
Cash flow from operating activities	2,013	1,957	–230	978	898
Interest-bearing net liabilities (+)/receivables (–)	–790	435	1,198	–337	–642
Operating margin, %	13.9	12.8	11.0	12.4	12.5
Return on equity, %	38.7	31.4	24.8	26.5	25.1
Equity/assets ratio, %	40	40	38	37	40
Earnings per share, SEK	31.00	21.20	15.50	16.00	14.50
Dividend per share, SEK	11.00	9.50	8.25	8.00	7.25
Number of available building rights	34,800	32,500	31,100	29,400	27,700
Number of residential units sold	3,100	3,843	3,770	3,195	3,265
Number of housing starts	3,873	4,187	3,731	3,445	2,953
Number of residential units in current production	8,200	7,984	7,212	6,375	5,609

GROUP QUARTERLY OVERVIEW

ACCORDING TO SEGMENT REPORTING, SEK M	2018		2017
INCOME STATEMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	4,054	4,551	3,813	4,399	4,245
Production and operating costs	–3,265	–3,659	–3,047	–3,513	–3,429
Gross profit	789	892	766	886	816
Selling and administrative expenses	–272	–254	–223	–282	–246
Gains/losses on the sale of property	11	0	-	14	-
Operating profit	528	638	543	618	570
Financial income and expenses	–16	–17	–15	–17	259
Profit before tax	512	621	528	601	829
Taxes	–113	–15	–117	–130	–123
Profit for the period	399	606	411	471	706
CONSOLIDATED BALANCE SHEET	3/31	12/31	9/30	6/30	3/31
ASSETS
Non-current assets	221	209	211	213	215
Project properties	1,193	1,074	878	791	688
Development properties	8,607	7,543	6,984	6,892	6,922
Participations in tenant-owners associations, etc.	309	309	267	269	205
Current receivables	3,828	3,698	3,524	3,477	3,173
Cash and cash equivalents	2,564	2,572	2,557	2,211	2,619
Total current assets	16,501	15,196	14,210	13,640	13,607
Total assets	16,722	15,405	14,421	13,853	13,822
EQUITY AND LIABILITIES
Shareholders' equity	6,664	6,178	5,653	5,381	5,725
Non-current interest-bearing liabilities	220	203	333	223	259
Other non-current liabilities	700	273	150	150	150
Non-current provisions	2,846	2,656	2,405	2,371	2,321
Total non-current liabilities	3,766	3,132	2,888	2,744	2,730
Current interest-bearing liabilities	336	332	204	435	334
Other current liabilities	5,831	5,654	5,564	5,184	4,932
Current provisions	125	109	112	109	101
Total current liabilities	6,292	6,095	5,880	5,728	5,367
Total equity and liabilities	16,722	15,405	14,421	13,853	13,822
CASH FLOW STATEMENT	Q 1	Q 4	Q 3	Q 2	Q 1
From operating activities	–18	145	574	293	1,001
From investing activities	–1	–3	–1	–3	307
From financing activities	1	–128	–225	–697	–209
Total cash flow for the period	–18	14	348	–407	1,099
Cash and cash equivalents at end of the period	2,564	2,572	2,557	2,211	2,619
INTEREST-BEARING NET LIABILITIES/RECEIVABLES	Q 1	Q 4	Q 3	Q 2	Q 1
Interest-bearing net liabilities(+)/receivables(–)
at beginning of the period	–790	–727	–274	–778	435
Change in interest-bearing net liabilities/receivables	42	–63	–453	504	–1,213
Interest-bearing net liabilities(+)/receivables(–)
at end of the period	–748	–790	–727	–274	–778
DEVELOPMENT PROPERTIES	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of period	7,543	6,984	6,892	6,922	7,121
New purchases	1,396	803	477	382	355
Transferred to production	–375	–228	–379	–388	–539
Other	43	–16	–6	–24	–15
Carrying amount at end of period	8,607	7,543	6,984	6,892	6,922
KEY RATIOS	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, %	13.0	14.0	14.2	14.0	13.4
Debt/equity ratio, multiple	-	-	-	-	-
Equity/assets ratio, %	40	40	39	39	41
Earnings per share, SEK	5.70	8.60	5.80	6.70	9.90
Number of available building rights	34,900	34,800	34,800	34,600	33,600
Number of residential units sold	480	684	681	871	864
Number of housing starts	570	1,183	971	906	813
Number of residential units in current production	7,672	8,200	7,739	7,641	7,901

BUSINESS SEGMENT QUARTERLY OVERVIEW

ACCORDING TO SEGMENT REPORTING, SEK M	2018		2017
JM RESIDENTIAL STOCKHOLM	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,475	1,820	1,613	1,878	1,840
Operating profit 1)	274	397	331	363	347
Operating margin, %	18.6	21.8	20.5	19.3	18.9
Average operating capital	4,663	4,450	4,374	4,354	4,345
Return on operating capital, % 2)	29.3	32.3	32.6	32.3	31.0
Operating cash flow	–77	225	505	375	498
Carrying amount, development properties	5,229	4,406	3,941	4,074	4,121
Number of available building rights	13,300	13,400	13,300	13,000	12,800
Number of residential units sold	117	197	213	388	354
Number of housing starts	215	324	365	454	300
Number of residential units in current production	3,510	3,842	3,837	3,598	3,714
1) Of which property sales	-	-	-	6	-
JM RESIDENTIAL SWEDEN	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,269	1,094	916	1,153	1,146
Operating profit 1)	213	181	149	175	164
Operating margin, %	16.8	16.5	16.3	15.2	14.3
Average operating capital	897	892	898	893	967
Return on operating capital, % 2)	80.0	75.0	68.4	67.2	55.7
Operating cash flow	232	159	–11	–29	497
Carrying amount, development properties	1,394	1,540	1,486	1,225	1,322
Number of available building rights	10,200	10,100	10,100	10,000	9,800
Number of residential units sold	244	301	332	348	321
Number of housing starts	286	360	372	336	343
Number of residential units in current production	2,210	2,351	2,196	2,279	2,169
1) Of which property sales	0	-	-	-	-
JM INTERNATIONAL	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	710	926	721	808	807
Operating profit 1)	53	84	63	66	58
Operating margin, %	7.5	9.1	8.7	8.2	7.2
Average operating capital	2,273	2,175	2,106	2,074	2,028
Return on operating capital, % 2)	11.7	12.5	12.0	12.0	10.3
Operating cash flow	92	–207	179	69	78
Carrying amount, development properties	1,932	1,545	1,497	1,533	1,394
Carrying amount, project properties	8	7	14	12	13
Number of available building rights	10,600	10,500	10,500	10,700	10,100
Number of residential units sold	119	186	136	135	189
Number of housing starts	69	362	234	116	170
Number of residential units in current production	1,399	1,454	1,290	1,348	1,602
1) Of which property sales	11	0	-	-	-
JM PROPERTY DEVELOPMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	15	12	11	19	18
Operating profit 1)	2	3	0	17	7
Average operating capital	910	800	697	623	550
Return on operating capital, % 2)	2.4	3.4	6.0	7.9	5.6
Operating cash flow	–109	–203	–65	–77	–71
Carrying amount, development properties	10	10	10	10	35
Carrying amount, project properties	1,185	1,067	864	779	675
Number of available building rights 3)	800	800	900	900	900
Number of residential units sold 3)	-	-	-	-	-
Number of housing starts 3)	-	137	-	-	-
Number of residential units in current production 3)	553	553	416	416	416
1) Of which property sales	-	-	-	8	-
3) Refers to rental units and residential care units.
JM CONSTRUCTION	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	698	833	689	677	552
Operating profit	0	–13	5	9	10
Operating margin, %	0.0	–1.6	0.7	1.3	1.8
Operating cash flow	–154	40	78	–63	31
JM OTHER	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination)	–113	–134	–137	–136	–118
Operating profit (Group-wide expenses)	–14	–14	–5	–12	–16

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

GROUP – IFRS

CONDENSED CONSOLIDATED INCOME STATEMENT

JANUARY–MARCH			APRIL–MARCH	FULL-YEAR
ACCORDING TO IFRS, SEK M	2018	2017	2017/2018	2017
Revenue	3,825	4,157	16,943	17,275
Production and operating costs	–3,057	–3,329	–13,556	–13,828
Gross profit	768	828	3,387	3,447
Selling and administrative expenses	–272	–246	–1,031	–1,005
Gains/losses on the sale of property	11	-	25	14
Operating profit	507	582	2,381	2,456
Financial income and expenses	–16	259	–65	210
Profit before tax	491	841	2,316	2,666
Taxes	–110	–129	–388	–407
Profit for the period	381	712	1,928	2,259
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign operations	78	–12	46	–44
Items that will not be reclassified as income
Restatement of defined-benefit pensions	0	0	53	53
Tax attributable to other comprehensive income	0	0	–12	–12
Comprehensive income for the period	459	700	2,015	2,256
Net profit for the period is attributable to shareholders of the Parent
Company	381	712	1,928	2,259
Comprehensive income for the period is attributable to shareholders of
the Parent Company	459	700	2,015	2,256
Earnings per share 1), basic, attributable to shareholders of the
Parent Company, SEK	5.50	10.00	27.40	32.00
Earnings per share 1), diluted, attributable to shareholders of the
Parent Company, SEK	5.50	10.00	27.40	31.90
Number of outstanding shares at end of period	69,583,262	71,010,408	69,583,262	69,583,262
Average number of shares, basic	69,583,262	71,288,879	70,222,029	70,642,592
Average number of shares, diluted	69,800,801	71,520,740	70,431,773	70,844,023

1) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO IFRS, SEK M	3/31/2018	3/31/2017	12/31/2017
ASSETS
Non-current assets	221	215	209
Project properties	1,193	688	1,074
Development properties	8,607	6,922	7,543
Participations in tenant-owners associations, etc.	309	205	309
Work in progress	2,651	2,187	2,291
Current receivables	3,105	2,520	2,949
Cash and cash equivalents	2,564	2,619	2,572
Total current assets	18,429	15,141	16,738
Total assets	18,650	15,356	16,947
EQUITY AND LIABILITIES 1) 2)
Shareholders' equity	6,502	5,526	6,043
Non-current interest-bearing liabilities	220	259	203
Other non-current liabilities	700	150	273
Non-current provisions	2,804	2,267	2,619
Total non-current liabilities	3,724	2,676	3,095
Current interest-bearing liabilities	2,162	2,240	1,728
Other current liabilities	6,137	4,813	5,972
Current provisions	125	101	109
Total current liabilities	8,424	7,154	7,809
Total equity and liabilities	18,650	15,356	16,947
Pledged assets	503	708	744
Contingent liabilities	9,547	10,254	9,993
1) Of which project financing JM International	2,203	1,906	1,857
2) Of which liabilities for property acquisition	1,448	580	794

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–MARCH
ACCORDING TO IFRS, SEK M	2018	2017	2017
Opening balance at beginning of period	6,043	4,951	4,951
Total comprehensive income for the period	459	700	2,256
Dividend	-	-	–675
Conversion of convertible loan	-	0	10
Equity component of convertible debentures	-	-	1
Buy-back of shares	-	–125	–500
Closing balance at the end of the period	6,502	5,526	6,043

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	JANUARY–MARCH		APRIL–MARCH	FULL-YEAR
ACCORDING TO IFRS, SEK M	2018	2017	2017/2018	2017
Cash flow from operating activities before change in
working capital and taxes	735	668	3,249	3,182
Paid tax	–261	–99	–523	–361
Investment in development properties, etc. 1)	–949	–591	–2,852	–2,494
Payment on account for development properties, etc.2)	618	674	1,982	2,038
Investment in project properties	–118	–86	–522	–490
Sale of project properties	-	-	6	6
Change in current liabilities/receivables	–378	359	–215	522
Cash flow from operating activities	–353	925	1,125	2,403
Cash flow from investing activities	–1	307 3)	–8	300 3)
Loans raised	49	21	242	214
Amortization of debt	–48	–105	–241	–298
Loans raised, project financing	411	160	1,043	792
Amortization of debt, project financing	–76	–84	–1,174	–1,182
Buy-back of shares	-	–125	–375	–500
Dividend	-	-	–675	–675
Cash flow from financing activities	336	–133	–1,180	–1,649
Cash flow for the period	–18	1,099	–63	1,054
Cash and cash equivalents at end of the period	2,564	2,619	2,564	2,572
1) Of which investment in participations in tenant-owners associations and
freehold residential units	–180	–162	–593	–575
2) Of which sale of participations in tenant-owners associations and freehold
residential units	167	123	539	495

3) Of which SEK 310m refers to the sale of the participations in Småa AB.

ACCOUNTING PRINCIPLES

This interim report for the first quarter of 2018 has been 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 principles and methods of calculation for the Group have not changed compared to the description on pages 82-85 of the 2017 Annual Report with two exceptions: IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments apply as of January 1, 2018. However, the transition to IFRS 15 and IFRS 9 has not had any impact on the Group's or the Parent Company's performance and financial position. For more information about JM's implementation of IFRS 15 and IFRS 9, refer to pages 82-85 in the 2017 Annual Report.

JM APPLIES THE FOLLOWING NEW STANDARDS AS OF 2018

IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS

IFRS 15 refers to the recognition of revenue from contracts and the sale of some non-financial assets.

JM makes the assessment that the reporting of the project development of residential units in Sweden can continue to occur with the application of the percentage of completion method. The contracts with the tenant-owners association are entered into simultaneously, are priced as a single unit and are assessed to constitute a performance obligation. Since JM is contractually obligated to deliver a specific building and during the course of the project is entitled to payment, the assessment is made that revenue must be reported over time, i.e. using the percentage of completion method.

With regard to corresponding business in Norway and Finland, the assessment is made that there is no entitlement to payment, which means that, in the same manner as today, revenue must be reported at a specific point in time, i.e. completion.

The assessment is also made that revenue in JM Construction can continue to be reported using the percentage of completion method since the construction is carried out on land that the customer controls.

As a whole, IFRS 15 is not considered to result in any changes to JM's revenue recognition principles.

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANY

IFRS 9 FINANCIAL INSTRUMENTS

IFRS 9 refers to the reporting of financial instruments. It contains rules for classification and measurement of financial assets and liabilities, impairment of financial instruments and hedge accounting. JM makes the assessment that IFRS 9 could affect the measurement of some receivables, but the effect is not considered material.

For more information about JM's application of IFRS 15 and IFRS 9, refer to pages 82-85 in the 2017 Annual Report.

SEGMENT REPORTING

JM's contracting operations in Norway are reported in the JM Construction business segment as of 2018. Comparative figures for the business segments JM International and JM Construction have been restated.

		JANUARY–MARCH
SEK M	2018	2017	2017
Net sales	2,730	3,047	11,602
Production and operating costs	–2,080	–2,379	–8,878
Gross profit	650	668	2,724
Selling and administrative expenses	–199	–174	–699
Gains/losses on the sale of property	0	-	14
Operating profit	451	494	2,039
Financial income and expenses	–8	262	310
Profit before appropriations and tax	433	756	2,349
Appropriations	-	-	–167
Profit before tax	433	756	2,182
Taxes	–97	–106	–288
Profit for the period	336	650	1,894

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK M	3/31/2018	3/31/2017	12/31/2017
Assets
Non-current assets	1,365	1,237	1,221
Current assets	10,893	9,119	10,155
Total assets	12,258	10,356	11,376
Equity and liabilities
Shareholders' equity	3,386	2,835	3,050
Untaxed reserves	2,360	2,170	2,360
Provisions	1,518	944	1,334
Non-current liabilities	765	254	340
Current liabilities	4,229	4,153	4,292
Total equity and liabilities	12,258	10,356	11,376
Pledged assets	169	169	169
Contingent liabilities	9,672	10,378	10,162

RECONCILIATION BETWEEN SEGMENT REPORT-ING AND IFRS

CONSOLIDATED INCOME STATEMENT

SEK M 2018 2017 2017/2018 2017 Revenue for the period (segment reporting) 4,054 4,245 16,817 17,008 Restatement JM International –229 –88 126 267 Revenue for the period (IFRS) 3,825 4,157 16,943 17,275 Operating profit/loss for the period (segment reporting) 528 570 2,327 2,369 Restatement JM International –21 12 54 87 Operating profit/loss for the period (IFRS) 507 582 2,381 2,456 Profit/loss for the period (segment reporting) 399 706 1,887 2,194 Restatement JM International –18 6 41 65 Profit/loss for the period (IFRS) 381 712 1,928 2,259 CONSOLIDATED BALANCE SHEET SEK M 3/31/2018 3/31/2017 12/31/2017 Balance sheet total (segment reporting) 16,722 13,822 15,405 Restatement JM International –275 –372 –315 Reclassification project financing JM International 1,826 1,906 1,396 Reclassification project financing JM International, non-interest-bearing 1) 377 - 461 Balance sheet total (IFRS) 18,650 15,356 16,947 1) Billing on account to customers CONSOLIDATED EQUITY SEK M 3/31/2018 3/31/2017 12/31/2017 Equity (segment reporting) 6,664 5,725 6,178 Restatement JM International –162 –199 –135 Equity (IFRS) 6,502 5,526 6,043 GROUP KEY FIGURES % 3/31/2018 3/31/2017 12/31/2017 Equity/assets ratio (segment reporting) 40 41 40 Equity/assets ratio (IFRS) 35 36 35 CONSOLIDATED CASH FLOW JANUARY–MARCH APRIL–MARCH FULL-YEAR SEK M 2018 2017 2017/2018 2017 Cash flow from operating activities (segment reporting) –18 1,001 994 2,013 Reclassification project financing JM International –335 –76 131 390 Cash flow from operating activities (IFRS) –353 925 1,125 2,403 CONSOLIDATED INTEREST-BEARING NET LIABILITIES/RECEIVABLES SEK M 3/31/2018 3/31/2017 12/31/2017 Interest-bearing net liabilities (+)/receivables (–) at end of period (segment reporting) –748 –778 –790 Reclassification project financing JM International 1,826 1,906 1,396 Interest-bearing net liabilities (+)/receivables (–) at end of period (IFRS) 1,078 1,128 606 REVENUE PER BUSINESS SEGMENT ACCORDING TO IFRS 15 JANUARY–MARCH APRIL–MARCH FULL-YEAR SEK M 2018 2017 2017/2018 2017 JM Residential Stockholm 1,475 1,840 6,786 7,151 JM Residential Sweden 1,269 1,146 4,432 4,309 JM International 481 719 3,291 3,529 JM Property Development 15 18 57 60 JM Construction 698 552 2,897 2,751 Elimination –113 –118 –520 –525 Total 3,825 4,157 16,943 17,275		JANUARY–MARCH	APRIL–MARCH	FULL-YEAR

Stockholm, April 27, 2018 JM AB (publ)

Johan Skoglund President and Chief Executive Officer

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

JM IN BRIEF

BUSINESS CONCEPT

With people in focus and through constant development, we create homes and sustainable living environments.

VISION

We are laying the foundations for a better life.

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 project development of commercial premises and contract work, primarily in the Greater Stockholm area.

JM should promote long-term sustainability work in all its operations. Annual sales total approximately SEK 17 billion and the company has around 2,600 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.

JM's financial targets are defined based on segment reporting.

PRESS RELEASES, Q1 2018

March 28	JM selling property in Larvik, Norway
March 28	JM acquiring property in Asker, outside Oslo, Norway
March 26	JM acquiring building rights on Södermalm in Stockholm
March 22	JM acquiring building rights in Järvastaden, Solna
March 9	Notice of JM's Annual General Meeting on
	April 12, 2018
March 8	JM Construction doing site and engineering work at
	Stockholm Norvik Port in Nynäshamn
	February 23 Nomination Committee's proposed Board composition
	for JM AB's 2018 Annual General Meeting
February 1	Year-end Report 2017
January 31	JM and Skanska continue to develop Täby Park

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 April 27, 2018.

FOR MORE INFORMATION PLEASE CONTACT:

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

FINANCIAL CALENDAR

DISCLOSURES

July 13, 2018 Interim Report January - June October 25, 2018 Interim Report January - September

JM's Annual Reports, Interim Reports and other financial information are available at jm.se/investors

Text: JM Photo/Illustrations: Richard Hammarskiöld, Sara Brehmer, Gunnar Kaiser, Elisabeth Toll, Carbonwhite

JM AB (publ)

Comp. Reg. No. 556045-2103 Website www.jm.se/en

Mailing address SE-169 82 Stockholm Street address Gustav III:s boulevard 64, Solna Telephone +46 8 782 87 00 Fax +46 8 782 86 00