JM — Interim / Quarterly Report 2017

Feb 1, 2018

JM GROUP YEAR-END REPORT JANUARY – DECEMBER 2017

SOLID FINANCIAL POSITION MEANS POSITION OF STRENGTH

JANUARY – DECEMBER 2017

Revenue increased to SEK 17,008m (15,752) and the operating profit increased to SEK 2,369m (2,011). The operating margin increased to 13.9 percent (12.8)

Profit before tax increased to SEK 2,579m (1,951). Profit after tax increased to SEK 2,194m (1,540)

Return on equity for the past twelve months increased to 38.7 percent (31.4). Earnings per share during the year increased to SEK 31.00 (21.20)

Consolidated cash flow including net investment in properties was SEK 2,013m (1,957)

The number of residential units sold decreased to 3,100 (3,843) and housing starts amounted to 3,873 (4,187)

Surplus value of development properties was SEK 7.2bn (7.0)

Dividend for 2017. The Board of Directors proposes a dividend of SEK 11.00 (9.50)

OCTOBER – DECEMBER 2017

Revenue increased to SEK 4,551m (4,296) and operating profit increased to SEK 638m (597). The operating margin was 14.0 percent (13.9)

Profit before tax increased to SEK 621m (572). Profit after tax increased to SEK 606m (474)

Consolidated cash flow including net investment in properties was SEK 145m (368)

The number of residential units sold decreased to 684 (925) and housing starts amounted to 1,183 (1,357)

ACCORDING TO SEGMENT REPORTING
	JANUARY – DECEMBER		OCTOBER – DECEMBER
SEK M	2017	2016	2017	2016
Revenue	17,008	15,752	4,551	4,296
Operating profit	2,369	2,011	638	597
Operating margin, %	13.9	12.8	14.0	13.9
Profit before tax	2,579	1,951	621	572
Cash flow from operating activities	2,013	1,957	145	368
Return on equity, %	38.7	31.4
Equity/assets ratio, %	40	40
Earnings per share, SEK	31.00	21.20	8.60	6.60
Number of residential units sold	3,100	3,843	684	925
Number of housing starts	3,873	4,187	1,183	1,357
Number of residential units in current production	8,200	7,984
Revenue according to IFRS	17,275	15,291	4,562	4,294
Operating profit according to IFRS	2,456	1,931	649	597
Earnings per share according to IFRS, SEK	31.90	20.30	8.70	6.60

The reporting of project funding in JM International was reclassified. Project funding was previously reported against costs incurred in the balance sheet item "Work in progress", but as from the third quarter 2017 it is reported as an interest-bearing and non-interest-bearing liability. Comparative figures have been restated. The reclassification has not resulted in any changes to segment reporting, project management or the risk profile in JM's international operations. The effects are presented in a restatement table, see the document "Reclassification of project funding in JM International" at jm.se/investors.

The Group applies IFRIC 15 Agreements for the Construction of Real Estate to its income statement and balance sheet in accordance with IFRS. This means that revenue and profit and loss for JM International, JM's operations outside of Sweden, are reported according to the completed contract method. Segment reporting and project management are reported according to IAS 11 using 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. See the accounting principles on pages 22-23.

Cover photo: Project Strandholmen, Norway

GROUP

"The housing market in Stockholm continued to be cautious during the fourth quarter. The production volume in Stockholm demonstrated solid development during the year with good profitability, and housing starts during the fourth quarter were supported by a normal level of reservations. The housing operations in the rest of Sweden are continuing

to show a positive development with good profitability levels in a stable market, if at a lower price level in the fourth quarter.

During the fourth quarter, the market in Norway weakened and demand in Finland continued to improve.

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 be created. In the rest of Sweden, competition for land is strong. JM's strong financial position also supports our prioritization to start new housing projects.

During the quarter, we started several projects in attractive locations. We started the second phase in the Strandholmen project southwest of Oslo with 31 of a total of around 70 planned residential units. We are creating housing here that is close to recreation but also good transportation to work and services. Holmestrand Centrum and its train station are walking distance away, and it is possible to take an elevator down to the beach next to the fjord.

In Kvibergsstaden outside of Gothenburg, we started production on Kvibergs Esplanad, which will have 108 residential units in two low rises and one tower block. With the best location for comfortable urban living between Säveån and Kviberg's barracks. Everything in easy distance, which means that the car is not needed.

JM is now increasing its focus on logistics with JM Supply, which develops material handling at JM's construction sites. This increased focus is a step in the development of production logistics to increase productivity at the worksites. The goal is for JM's worksites to have both fewer and smaller disruptions caused by the material supply chain. With this method of working, we hope to create the right conditions for increased productivity and at the same time develop new and more ergonomic aids.

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."

Johan Skoglund, President and CEO

MARKET, SALES AND HOUSING STARTS JANUARY – DECEMBER 2017

The housing market in Stockholm continued to be cautious during the fourth quarter. The production volume in Stockholm demonstrated stable growth with good profitability, and housing starts during the quarter were supported by a normal level of reservations.

In the rest of Sweden, demand was stable and interest in JM's projects continued to be stable during the fourth quarter. The market dipped in Norway in the fourth quarter, while demand continued to improve in Finland. 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 3,100 (3,843) 1). The percentage of sold or reserved homes in relation to current production amounts to 65 percent (77), with an interval of 60-65 percent considered normal. JM Residential Stockholm sold 1,152 residential units (1,552), JM Residential Sweden sold 1,302 (1,318), JM International sold 646 (973) and JM Property Development sold 0 (0).

The number of housing starts was 3,873 (4,187) 2). JM Residential Stockholm started production on 1,443 residential units (1,745), JM Residential Sweden on 1,411 (1,336), JM International on 882 (877) and JM Property Development on 137 (229).

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 8,200 (7,984), 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 137 rental units and residential care units (229).

	JANUARY–DECEMBER	OCTOBER–DECEMBER
OPERATING PROFIT BY BUSINESS SEGMENT, SEK M	2017	2016	2017	2016
JM Residential Stockholm	1,438	1,295	397	387
JM Residential Sweden	669	480	181	126
JM International	281	204	93	67
JM Property Development	27	30	3	18
JM Construction	1	43	–22	10
Group-wide expenses	–47	–41	–14	–11
Total	2,369	2,011	638	597
Of which property sales	14	15	-	-

OPERATING MARGIN BY BUSINESS SEGMENT, %		JANUARY–DECEMBER
	2017	2016	2017	2016
JM Residential Stockholm	20.1	18.1	21.8	19.2
JM Residential Sweden	15.5	12.6	16.5	12.6
JM International	7.5	5.9	8.6	7.2
JM Construction	0.0	2.6	–3.2	2.2

1) According to segment reporting

REVENUE, OPERATING PROFIT AND OPERATING MARGIN JANUARY – DECEMBER 2017

Consolidated revenue in accordance with segment reporting for the year increased to SEK 17,008m (15,752). Revenue restated according to IFRS increased to SEK 17,275m (15,291).

Operating profit according to segment reporting increased to SEK 2,369m (2,011) and the operating margin increased to 13.9 percent (12.8). Operating profit restated according to IFRS increased to SEK 2,456m (1,931). The restatement is related to JM International and had an effect on earnings of SEK 87m (–80).

Properties were sold during the year for SEK 21m (86) with gains of SEK 14m (15).

Rental income from JM's project properties was SEK 41m (25). Net rental income was SEK 25m (5).

OCTOBER – DECEMBER 2017

Consolidated revenue according to segment reporting for the fourth quarter increased to SEK 4,551m (4,296). Revenue restated according to IFRS increased to SEK 4,562m (4,294).

Operating profit according to segment reporting increased to SEK 638m (597) and the operating margin amounted to 14.0 percent (13.9). Operating profit restated according to IFRS increased to SEK 649m (597). The restatement is related to JM International and had an effect on earnings of SEK 11m (0).

During the fourth quarter, properties were sold for SEK 6m (2) with gains/losses of SEK 0m (0).

Rental income from JM's project properties was SEK 13m (8). Net rental income was SEK 8m (2).

PROJECT PROPERTIES

The externally appraised market value of JM's project properties was calculated to be SEK 1,343m (863) with a carrying amount of SEK 1,074m (602).

RESIDENTIAL UNITS IN CURRENT PRODUCTION	12/31/2017	12/31/2016
Number of residential units in current production 1) 2)	8,200	7,984
Percentage of sold residential units in current production, % 3)	58	65
Percentage reserved residential units in current production, %	7	12
Percentage sold and reserved residential units in current production, %	65	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	553	416
Including residential units in projects where costs incurred are only reported as project properties under construction	553	416
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 12/31/2017 12/31/2016

Completed production, number of unsold units 1)	72	70
The number of unsold residential units in the balance sheet reported as
"Participations in tenant-owners associations, etc."	82	64

1) After final occupancy according to plan.

RESIDENTIAL BUILDING RIGHTS

The number of available building rights at the end of the year amounted to 34,800 (32,500), of which 18,700 (17,900) are recognized in the balance sheet. Capital tied up in building rights (development properties in the balance sheet) for residential units increased to SEK 7,491m (7,037).

Valuation of JM's total development properties with a carrying amount of SEK 7.5bn (7.1) shows a surplus value of SEK 7.2bn (7.0). This valuation was carried out in cooperation with an independent appraisal company.

During 2017, JM purchased development properties for residential units for SEK 2,017m (1,894), of which SEK 862m relates to JM Residential Stockholm, SEK 607m to JM Residential Sweden and SEK 548m to JM International.

		CARRYING
DEVELOPMENT PROPERTIES (RESIDENTIAL UNITS),	MARKET VALUE	AMOUNT	MARKET VALUE	AMOUNT
SEK BILLION	12/31/2017	12/31/2017	12/31/2016	12/31/2016
JM Residential Stockholm	9.9	4.4	9.1	4.3
JM Residential Sweden	2.5	1.5	2.5	1.4
JM International	2.3	1.6	2.5	1.4
Total	14.7	7.5	14.1	7.1

FINANCIAL ITEMS

JANUARY – DECEMBER 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 5m compared to the previous year primarily due to dividends not received during 2017 from Småa as a result of the completed sale.

Total interest-bearing loans according to segment reporting was SEK 1,786m (1,959), of which the provision for pensions comprised SEK 1,251m (1,239). At the end of the year, the average interest rate for the total interest-bearing loan stock including the pension liability was 2.4 percent (2.4). The average term for fixed-rate loans excluding the pension liability was 0.2 years (0.4).

CASH FLOW

JANUARY – DECEMBER 2017

Cash flow from operating activities according to segment reporting was SEK 2,013m (1,957) during the year. Net investments in development properties resulted in a negative cash flow of SEK –376m (66). Holdings of repurchased residential units burdened cash flow by SEK –80m (–26). Consolidated cash flow attributable to project properties (sales minus investment) during the year was SEK –484m (–241).

Consolidated available liquidity was SEK 5,372m (4,320). Aside from cash and cash equivalents of SEK 2,572m (1,520), 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 2.6 years (1.5).

Interest-bearing net receivables according to segment reporting totaled SEK 790m (–435) at the end of the year. Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 722m (497). Of these liabilities, SEK 449m (329) 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.

OCTOBER – DECEMBER 2017

Cash flow from operating activities according to segment reporting was SEK 145m (368) during the fourth quarter. Net investments in development properties resulted in a negative cash flow of SEK –489m (–501). Holdings of repurchased residential units burdened cash flow by SEK –16m (–44). Consolidated cash flow attributable to project properties (sales minus investment) during the fourth quarter was SEK –196m (–72).

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.

BUY-BACK AND HOLDINGS OF OWN SHARES

During the fourth quarter 2017, 620,771 shares were bought back for a total of SEK 125m. Holdings of own shares subsequently total 1,476,421. After the 2017 Annual General Meeting, shares were bought back for SEK 375m.

The number of outstanding shares, excluding holdings of own shares, at December 31, 2017, totals 69,583,262.

The Board of Directors intends to propose to the Annual General Meeting that all the holdings of own shares be eliminated through a decrease in the share capital for appropriations to unrestricted equity. The Board of Directors' complete proposal for a resolution regarding the elimination of shares will be available in conjunction with the notice of Annual General Meeting on March 14, 2018.

JM continues to have a strong financial position and strong liquidity. However, the Board of Directors does not intend to propose a buy-back of own shares to the Annual General Meeting. Neither will JM buy back any of the company's own shares during the first quarter of 2018. The aim is to enable larger acquisitions of development properties if the opportunity arises. The strong financial position also supports our prioritization to start new housing projects.

FINANCIAL TARGETS BASED ON SEGMENT REPORTING

Segment reporting reflects the economic significance of JM's business. This also correlates well to the Group's internal governance, which is based on the Group's cash flows, risk profile and capital allocation.

The change in JM's external reporting, as presented on page 2, entails that the definitions of the Group's financial targets will be based on segment reporting, but otherwise are unchanged. The new external reporting has not had an impact in any respect on the Group's governance or risk profile.

PERSONNEL

The number of employees increased at the end of the year to 2,531 (2,422). The number of wage-earners was 998 (1,023) and the number of salaried employees was 1,533 (1,399). 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 continues to be strong for qualified project development skills.

DIVIDEND

For 2017 the Board of Directors proposes a dividend of SEK 11.00 (9.50) per share for a total of SEK 765m (675). The proposed record date for the dividend is April 16, 2018. If the Annual General Meeting resolves to adopt the proposal, the dividend will be sent on Thursday, April 19, 2018.

SEK M	JANUARY–DECEMBER	OCTOBER–DECEMBER
	2017	2016	2017	2016
Financial income 1)	279	17	3	2
Financial expenses	–69	–68	–20	–18
Currency effect from the closing down of operations 2)	-	–9	-	–9
Financial income and expenses	210	–60	–17	–25
1) Of which gains from sales of participations in Småa AB	275	-	-	-

2) Pertains to JM's operations in Denmark.

	JANUARY–DECEMBER		OCTOBER–DECEMBER
ACCORDING TO SEGMENT REPORTING, SEK M	2017	2016	2017	2016
Interest-bearing net liabilities(+)/receivables(–) at
beginning of the period	435	1,198	–727	737
Change in interest-bearing net liabilities/receivables	–1,225	–763	–63	–302
Interest-bearing net liabilities(+)/receivables(–) at end
of the period	–790	435	–790	435

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 decreased during the fourth quarter. The supply of homes has been high, and the supply of new homes clearly increased in some local markets.

Competition for well-situated land for housing is considered to have decreased at the end of the year at the same time as the supply of properties for housing development increased. 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 fourth quarter.

Customers are continuing to show strong interest in our projects, but are taking a cautious approach to signing contracts early in the process.

Housing starts in Stockholm during the fourth quarter were supported by a normal number of reservations, which means that the ongoing production volume is stable and continued to have good profitability.

Business segment revenue amounted to SEK 7,151m (7,162). Revenue during the fourth quarter decreased to 1,820 (2,018), which is due to the low level of transferred land to projects during the quarter. Operating profit increased to SEK 1,438m (1,295). The operating margin increased to 20.1 percent (18.1).

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

Production was started in the fourth quarter on 324 residential units in apartment buildings in Huddinge, Upplands Bro, Österåker and Järfälla.

During the fourth quarter, JM purchased building rights corresponding to about 460 homes in Stockholm and Sundbyberg.

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Revenue	7,151	7,162	1,820	2,018
Operating profit 1)	1,438	1,295	397	387
Operating margin, %	20.1	18.1	21.8	19.2
Average operating capital	4,450	4,388
Return on operating capital, %	32.3	29.5
Operating cash flow	1,603	1,558	225	367
Carrying amount, development properties	4,406	4,286
Number of available building rights	13,400	13,000
Number of residential units sold	1,152	1,552	197	399
Number of housing starts	1,443	1,745	324	634
Number of residential units in current production	3,842	3,786
Number of employees	877	859
1) Of which property sales	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.

Average prices on the existing home market decreased at different rates in all markets in the business segment during the fourth quarter, and the supply in some local markets increased.

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.

Business segment revenue increased to SEK 4,309m (3,820), and operating profit increased to SEK 669m (480). The operating margin increased to 15.5 percent (12.6). The profit and the margin improved as a result of strong demand and an increase in prices in recent years.

Cash flow during the year is in balance, at the same time as it was burdened by greater holdings of development properties.

Production was started in the fourth quarter on 360 residential units in apartment buildings and single-family homes in Gothenburg, Uppsala, Malmö and Linköping.

During the fourth quarter, JM purchased building rights corresponding to 150 homes in Uppsala and Partille.

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Revenue	4,309	3,820	1,094	997
Operating profit 1)	669	480	181	126
Operating margin, %	15.5	12.6	16.5	12.6
Average operating capital	892	1,085
Return on operating capital, %	75.0	44.2
Operating cash flow	616	720	159	180
Carrying amount, development properties	1,540	1,350
Number of available building rights	10,100	9,700
Number of residential units sold	1,302	1,318	301	343
Number of housing starts	1,411	1,336	360	358
Number of residential units in current production	2,351	2,240
Number of employees	590	586
1) Of which property sales	-	37	-	-

JM INTERNATIONAL

The JM International business segment develops residential projects primarily in Norway and Finland. Revenue recognition for the business segment is reported according to IAS 11, percentage of completion method. Contracting operations are also conducted to a limited extent in Norway. As of 2018, the contracting operations are reported in the JM Construction business segment.

Business segment revenue increased to SEK 3,729m (3,477), and operating profit increased to SEK 281m (204). The operating margin increased to 7.5 percent (5.9).

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

NORWAY

The prices on the existing home market in Norway decreased somewhat during the fourth quarter. Customers are more cautious and time to closing has increased.

JM Norway's revenue increased to SEK 3,244m (3,056) and operating profit increased to SEK 273m (227). The operating margin increased to 8.4 percent (7.4).

During the fourth quarter, 126 residential units (149) were sold and production began on 279 units (136). Housing starts during the fourth quarter consist of residential units in apartment buildings and single-family homes in the Oslo region, Tønsberg, Holmestrand, Larvik and Bergen. The number of residential units in current production amounts to 1,193 (1,203).

During the fourth quarter, JM purchased building rights corresponding to 46 residential units in Drammen and 56 in Bergen.

Available building rights correspond to 7,600 residential units (6,700).

		JANUARY–DECEMBER	OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Revenue	3,729	3,477	1,076	936
- of which JM Norway	3,244	3,056	966	815
Operating profit 1)	281	204	93	67
- of which JM Norway	273	227	94	69
Operating margin, %	7.5	5.9	8.6	7.2
- of which JM Norway	8.4	7.4	9.7	8.5
Average operating capital	2,147	1,997
Return on operating capital, %	13.1	10.2
Operating cash flow	156	153	–165	–114
Carrying amount, development properties	1,545	1,401
Carrying amount, project properties	7	13
Number of available building rights	10,500	8,900
Number of residential units sold	646	973	186	183
Number of housing starts	882	877	362	136
Number of residential units in current production	1,454	1,542
Number of employees	467	420
1) Of which property sales	0	–23	0	-

FINLAND

The housing market in the Helsinki region continued to improve in the fourth quarter. The turnover rate and prices increased slightly during the quarter.

During the fourth quarter, 59 residential units (31) were sold and production began on 83 units (0). The number of residential units in current production amounts to 261 (277).

During the quarter, JM purchased building rights corresponding to 254 residential units (0).

Available building rights correspond to 2,700 residential units (2,000).

BELGIUM

JM closed its operations in Belgium in the first quarter 2017. JM is still the owner of one development property and five residential units that are for sale. During the fourth quarter, 1 residential unit (3) was 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 60m (142), including contracting revenue of SEK 19m (117) and rental income of SEK 41m (25). Operating profit was SEK 27m (30).

Net rental income for project properties was SEK 24m (5). The profit from construction contracts was SEK 13m (45) and gains from property sales were SEK 8m (1).

Cash flow during the year was 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 92 percent in the buildings that will not be demolished.

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

During the fourth quarter, production was started on a rental unit project, Alba Lilium in Bredäng, in JM's own balance sheet and the project will include 137 apartments. Production is also underway on three rental projects in JM's own balance sheet: the Tjärtunnan project in Stureby, 187 residential units with occupancy in 2017/2018; the Spaken project in Hägernäs, Täby, 136 rental apartments with occupancy planned for 2018; and the Alphyddan project in Sickla, Nacka, 93 student apartments with occupancy planned for 2018.

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Revenue	60	142	12	46
Operating profit 1)	27	30	3	18
Average operating capital	800	508
Return on operating capital, %	3.4	5.9
Operating cash flow	–416	–101	–203	–49
Carrying amount, development properties	10	35
Carrying amount, project properties	1,067	589
Number of available building rights 2)	800	900
Number of residential units sold 2)	-	-	-	-
Number of housing starts 2)	137	229	137	229
Number of residential units in current production 2)	553	416
Number of employees	35	31
1) Of which property sales	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. As of 2018, the contracting operations conducted in Norway are reported in the JM Construction business segment.

Demand in the contracting market in Stockholm is at a good level and customers are 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 2,284m (1,655) and operating profit decreased to SEK 1m (43). Profit for the fourth quarter includes gains from the sale of property totaling SEK 31m (0). The operating margin decreased to 0.0 percent (2.6). Profit/loss was burdened by the major revaluation of three current projects. A long-term project is underway in the business segment to raise profitability.

Cash flow is in balance.

The business segment received a number of assignments during the fourth quarter, of which the largest was land work in Norra Djurgårdsstaden for the City of Stockholm.

The largest ongoing projects are a new operational area at Arlanda Airport (Swedavia), new production of a school (Vallentuna Municipality), new production of an office building in Danderyd (Skandia Fastigheter), new production of apartment buildings in Norra Djurgårdsstaden (HSB and Riksbyggen) and new production of apartment buildings in Tyresö (Småa and Riksbyggen).

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Revenue 1)	2,284	1,665	683	454
Operating profit	1	43	–22	10
Operating margin, %	0.0	2.6	–3.2	2.2
Operating cash flow	49	32	–2	47
Carrying amount, development properties	42	49
Number of employees	401	393
1) Of which internal	525	514	134	155

GROUP – SEGMENT REPORTING

CONDENSED CONSOLIDATED INCOME STATEMENT

		JANUARY–DECEMBER		OCTOBER–DECEMBER
ACCORDING TO SEGMENT REPORTING, SEK M	2017	2016	2017	2016
Revenue	17,008	15,752	4,551	4,296
Production and operating costs	–13,648	–12,821	–3,659	–3,447
Gross profit	3,360	2,931	892	849
Selling and administrative expenses	–1,005	–935	–254	–252
Gains/losses on the sale of property	14	15	0	0
Operating profit	2,369	2,011	638	597
Financial income and expenses	210	–60	–17	–25
Profit before tax	2,579	1,951	621	572
Taxes 1)	–385	–411	–15	–98
Profit for the period	2,194	1,540	606	474
Other comprehensive income	–10	53	44	67
Comprehensive income for the period	2,184	1,593	650	541
Earnings per share 2), diluted, attributable to shareholders of the
Parent Company, SEK	31.00	21.20	8.60	6.60
Average number of shares, diluted	70,844,023	72,725,820	70,195,473	71,986,460

1) The low tax cost in the fourth quarter 2017 is attributable to utilized loss carry-forwards for the closed Danish operations, which had a positive tax effect of SEK 118m. The lower tax cost for full-year 2017 was also affected by the tax-exempt sale of the shares in Småa AB.

2) Net profit/loss for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO SEGMENT REPORTING, SEK M 12/31/2017		12/31/2016
ASSETS
Non-current assets	209	230
Project properties	1,074	602
Development properties	7,543	7,121
Participations in tenant-owners associations, etc.	309	233
Current receivables 1)	3,698	3,142
Cash and cash equivalents	2,572	1,520
Total current assets	15,196	12,618
Total assets	15,405	12,848
EQUITY AND LIABILITIES 2)
Equity	6,178	5,158
Non-current interest-bearing liabilities	203	282
Other non-current liabilities	273	168
Non-current provisions	2,656	2,297
Total non-current liabilities	3,132	2,747
Current interest-bearing liabilities	332	438
Other current liabilities	5,654	4,404
Current provisions	109	101
Total current liabilities	6,095	4,943
Total equity and liabilities	15,405	12,848
1) Of which receivables from property sales	83	72
2) Of which liabilities for property acquisition	794	654

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–DECEMBER
ACCORDING TO SEGMENT REPORTING, SEK M	2017	2016
Opening balance at beginning of period	5,158	4,652
Total comprehensive income for the period	2,184	1,593
Dividend	–675	–602
Conversion of convertible loan	10	13
Equity component of convertible debentures	1	2
Buy-back of shares	–500	–500
Closing balance at the end of the period	6,178	5,158

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		JANUARY–DECEMBER		OCTOBER–DECEMBER
ACCORDING TO SEGMENT REPORTING, SEK M	2017	2016	2017	2016
Cash flow from operating activities before change in working
capital and taxes	3,095	2,293	1,097	666
Paid tax	–361	–413	–48	–89
Investment in development properties, etc.1)	–2,494	–2,215	–883	–1,089
Payment on account for development properties, etc.2)	2,038	2,255	378	544
Investment in project properties	–490	–242	–202	–72
Sale of project properties	6	1	6	-
Change in current liabilities/receivables	219	278	–203	408
Cash flow from operating activities	2,013	1,957	145	368
Cash flow from investing activities	300	–6	–3	–1
Loans raised	214	300	61	114
Amortization of debt	–298	–910	–64	–14
Buy-back of shares	–500	–500	–125	–125
Dividend	–675	–602	-	-
Cash flow from financing activities	–1,259	–1,712	–128	–25
Cash flow for the period	1,054	239	14	342
Cash and cash equivalents at end of the period	2,572	1,520	2,572	1,520
1) Of which investment in participations in tenant-owners associations and freehold residential units	–575	–283	–208	–117
2) Of which sale of participations in tenant-owners associations and freehold residential units	495	257	192	73

GROUP KEY FIGURES

		JANUARY–DECEMBER		OCTOBER–DECEMBER
ACCORDING TO SEGMENT REPORTING, %	2017	2016	2017	2016
Operating margin	13.9	12.8	14.0	13.9
Return on equity	38.7	31.4
Return on capital employed	35.1	28.4
Debt/equity ratio, times	-	0.1	-	0.1
Equity/assets ratio	40	40

ACCORDING TO SEGMENT REPORTING

REVENUE BY COUNTRY

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Sweden	13,279	12,275	3,475	3,360
Norway	3,244	3,056	966	815
Finland	482	377	109	114
Belgium	3	29	1	7
Denmark	-	15	-	0
Total	17,008	15,752	4,551	4,296

REVENUE BY BUSINESS SEGMENT

		JANUARY–DECEMBER	OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
JM Residential Stockholm	7,151	7,162	1,820	2,018
JM Residential Sweden	4,309	3,820	1,094	997
JM International	3,729	3,477	1,076	936
JM Property Development	60	142	12	46
JM Construction	2,284	1,665	683	454
Elimination	–525	–514	–134	–155
Total	17,008	15,752	4,551	4,296

OPERATING PROFIT BY BUSINESS SEGMENT

		JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
JM Residential Stockholm	1,438	1,295	397	387
JM Residential Sweden	669	480	181	126
JM International	281	204	93	67
JM Property Development	27	30	3	18
JM Construction	1	43	–22	10
Group-wide expenses	–47	–41	–14	–11
Total	2,369	2,011	638	597

OPERATING MARGIN BY BUSINESS SEGMENT

		JANUARY–DECEMBER		OCTOBER–DECEMBER
%	2017	2016	2017	2016
JM Residential Stockholm	20.1	18.1	21.8	19.2
JM Residential Sweden	15.5	12.6	16.5	12.6
JM International	7.5	5.9	8.6	7.2
JM Construction	0.0	2.6	–3.2	2.2

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT

SEK M	2017	2016
JM Residential Stockholm	4,450	4,388
JM Residential Sweden	892	1,085
JM International	2,147	1,997
JM Property Development	800	508

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT

%	2017	2016
JM Residential Stockholm	32.3	29.5
JM Residential Sweden	75.0	44.2
JM International	13.1	10.2
JM Property Development	3.4	5.9

ACCORDING TO SEGMENT REPORTING

OPERATING CASH FLOW BY BUSINESS SEGMENT

SEK M		JANUARY–DECEMBER		OCTOBER–DECEMBER
	2017	2016	2017	2016
JM Residential Stockholm	1,603	1,558	225	367
JM Residential Sweden	616	720	159	180
JM International	156	153	–165	–114
JM Property Development	–416	–101	–203	–49
JM Construction	49	32	–2	47

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

CARRYING AMOUNT, SEK M	12/31/2017	12/31/2016
JM Residential Stockholm	4,406	4,286
JM Residential Sweden	1,540	1,350
JM International	1,545	1,401
JM Property Development	10	35
JM Construction	42	49
Total	7,543	7,121

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

NUMBER	12/31/2017	12/31/2016
JM Residential Stockholm	13,400	13,000
JM Residential Sweden	10,100	9,700
JM International	10,500	8,900
JM Property Development 1)	800	900
Total	34,800	32,500
Including those carried in the balance sheet (development properties)
JM Residential Stockholm	7,800	8,000
JM Residential Sweden	6,100	5,500
JM International	4,600	4,300
JM Property Development 1)	200	100
Total	18,700	17,900

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

NUMBER		JANUARY–DECEMBER		OCTOBER–DECEMBER
	2017	2016	2017	2016
JM Residential Stockholm	1,152	1,552	197	399
JM Residential Sweden	1,302	1,318	301	343
JM International	646	973	186	183
JM Property Development 1)	-	-	-	-
Total	3,100	3,843	684	925

HOUSING STARTS BY BUSINESS SEGMENT

NUMBER		JANUARY–DECEMBER	OCTOBER–DECEMBER
	2017	2016	2017	2016
JM Residential Stockholm	1,443	1,745	324	634
JM Residential Sweden	1,411	1,336	360	358
JM International	882	877	362	136
JM Property Development 1)	137	229	137	229
Total	3,873	4,187	1,183	1,357

RESIDENTIAL UNITS IN CURRENT PRODUCTION

NUMBER	12/31/2017	12/31/2016
JM Residential Stockholm	3,842	3,786
JM Residential Sweden	2,351	2,240
JM International	1,454	1,542
JM Property Development 1)	553	416
Total	8,200	7,984

1) Refers to rental units and residential care units.

PROJECT PROPERTIES, GROUP

		CARRYING		OCCUPANCY	CARRYING
	MARKET	AMOUNT,	AREA	RATE ANNUAL	AMOUNT, SEK M
12/31/2017	VALUE, SEK M	SEK M	(000) M²	RENT, %	12/31/2016
Properties under development	1,018	837	27	92	583
Completed rental apartment properties	300	224	6	100	-
Completed commercial properties	25	13	1	100	19
Total	1,343	1,074	34	95	602

DEVELOPMENT PROPERTIES, GROUP

		JANUARY–DECEMBER
CARRYING AMOUNT, SEK M	2017	2016	2017	2016
Opening balance at beginning of period	7,121	7,067	6,984	6,547
New purchases	2,017	1,903	803	966
Transferred to production	–1,534	–1,896	–228	–408
Other	–61	47	–16	16
Closing balance at the end of the period	7,543	7,121	7,543	7,121

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 1)	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

1) Board proposal

GROUP QUARTERLY OVERVIEW

ACCORDING TO SEGMENT REPORTING, SEK M		2017				2016
INCOME STATEMENT	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	4,551	3,813	4,399	4,245	4,296	3,729	3,970	3,757
Production and operating costs	–3,659	–3,047	–3,513	–3,429	–3,447	–3,045	–3,233	–3,096
Gross profit	892	766	886	816	849	684	737	661
Selling and administrative expenses	–254	–223	–282	–246	–252	–200	–266	–217
Gains/losses on the sale of property	0	-	14	-	0	37	–23	1
Operating profit	638	543	618	570	597	521	448	445
Financial income and expenses	–17	–15	–17	259	–25	–12	–7	–16
Profit before tax	621	528	601	829	572	509	441	429
Taxes	–15	–117	–130	–123	–98	–114	–102	–97
Profit for the period	606	411	471	706	474	395	339	332
CONSOLIDATED BALANCE SHEET	12/31	9/30	6/30	3/31	12/31	9/30	6/30	3/31
ASSETS
Non-current assets	209	211	213	215	230	233	219	212
Project properties	1,074	878	791	688	602	554	495	437
Development properties	7,543	6,984	6,892	6,922	7,121	6,547	6,534	6,769
Participations in tenant-owners associations, etc.	309	267	269	205	233	240	247	233
Current receivables	3,698	3,524	3,477	3,173	3,142	3,672	3,523	3,320
Cash and cash equivalents	2,572	2,557	2,211	2,619	1,520	1,177	1,282	1,182
Total current assets	15,196	14,210	13,640	13,607	12,618	12,190	12,081	11,941
Total assets	15,405	14,421	13,853	13,822	12,848	12,423	12,300	12,153
EQUITY AND LIABILITIES
Equity	6,178	5,653	5,381	5,725	5,158	4,740	4,455	4,886
Non-current interest-bearing liabilities	203	333	223	259	282	352	343	375
Other non-current liabilities	273	150	150	150	168	169	152	151
Non-current provisions	2,656	2,405	2,371	2,321	2,297	2,390	2,276	2,131
Total non-current liabilities	3,132	2,888	2,744	2,730	2,747	2,911	2,771	2,657
Current interest-bearing liabilities	332	204	435	334	438	267	368	408
Other current liabilities	5,654	5,564	5,184	4,932	4,404	4,403	4,612	4,113
Current provisions	109	112	109	101	101	102	94	89
Total current liabilities	6,095	5,880	5,728	5,367	4,943	4,772	5,074	4,610
Total equity and liabilities	15,405	14,421	13,853	13,822	12,848	12,423	12,300	12,153
CASH FLOW STATEMENT	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
From operating activities	145	574	293	1,001	368	102	886	601
From investing activities	–3	–1	–3	307	–1	–2	–3	0
From financing activities	–128	–225	–697	–209	–25	–207	–784	–696
Total cash flow for the period	14	348	–407	1,099	342	–107	99	–95
Cash and cash equivalents at end of the period	2,572	2,557	2,211	2,619	1,520	1,177	1,282	1,182
INTEREST-BEARING NET LIABILITIES/RECEIVABLES	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Interest-bearing net liabilities(+)/receivables(–)
at beginning of the period	–727	–274	–778	435	737	656	741	1,198
Change in interest-bearing net liabilities/receivables	–63	–453	504	–1,213	–302	81	–85	–457
Interest-bearing net liabilities(+)/receivables(–)
at end of the period	–790	–727	–274	–778	435	737	656	741
DEVELOPMENT PROPERTIES	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of period	6,984	6,892	6,922	7,121	6,547	6,534	6,769	7,067
New purchases	803	477	382	355	966	562	125	250
Transferred to production	–228	–379	–388	–539	–408	–594	–344	–550
Other	–16	–6	–24	–15	16	45	–16	2
Carrying amount at end of period	7,543	6,984	6,892	6,922	7,121	6,547	6,534	6,769
KEY RATIOS	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, %	14.0	14.2	14.0	13.4	13.9	14.0	11.3	11.8
Debt/equity ratio, multiple	-	-	-	-	0.1	0.2	0.1	0.2
Equity/assets ratio, %	40	39	39	41	40	38	36	40
Earnings per share, SEK	8.60	5.80	6.70	9.90	6.60	5.50	4.60	4.50
Number of available building rights	34,800	34,800	34,600	33,600	32,500	30,900	30,400	30,800
Number of residential units sold	684	681	871	864	925	960	1,031	927
Number of housing starts	1,183	971	906	813	1,357	1,058	916	856
Number of residential units in current production	8,200	7,739	7,641	7,901	7,984	7,793	7,081	7,550

BUSINESS SEGMENT QUARTERLY OVERVIEW

ACCORDING TO SEGMENT REPORTING, SEK M		2017				2016
JM RESIDENTIAL STOCKHOLM	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,820	1,613	1,878	1,840	2,018	1,699	1,741	1,704
Operating profit 1)	397	331	363	347	387	308	306	294
Operating margin, %	21.8	20.5	19.3	18.9	19.2	18.1	17.6	17.3
Average operating capital	4,450	4,374	4,354	4,345	4,388	4,382	4,287	4,229
Return on operating capital, % 2)	32.3	32.6	32.3	31.0	29.5	27.3	26.8	26.2
Operating cash flow	225	505	375	498	367	180	551	460
Carrying amount, development properties	4,406	3,941	4,074	4,121	4,286	4,117	4,124	4,310
Number of available building rights	13,400	13,300	13,000	12,800	13,000	12,400	12,100	12,300
Number of residential units sold	197	213	388	354	399	353	403	397
Number of housing starts	324	365	454	300	634	456	283	372
Number of residential units in current production	3,842	3,837	3,598	3,714	3,786	3,564	3,237	3,801
1) Of which property sales	-	-	6	-	-	-	-	-
JM RESIDENTIAL SWEDEN	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,094	916	1,153	1,146	997	830	986	1,007
Operating profit 1)	181	149	175	164	126	135	114	105
Operating margin, %	16.5	16.3	15.2	14.3	12.6	16.3	11.6	10.4
Average operating capital	892	898	893	967	1,085	1,150	1,175	1,249
Return on operating capital, % 2)	75.0	68.4	67.2	55.7	44.2	39.7	33.1	28.3
Operating cash flow	159	–11	–29	497	180	58	308	174
Carrying amount, development properties	1,540	1,486	1,225	1,322	1,350	1,096	1,137	1,189
Number of available building rights	10,100	10,100	10,000	9,800	9,700	9,400	9,600	9,600
Number of residential units sold	301	332	348	321	343	311	345	319
Number of housing starts	360	372	336	343	358	331	343	304
Number of residential units in current production	2,351	2,196	2,279	2,169	2,240	2,300	2,075	1,962
1) Of which property sales	-	-	-	-	-	37	0	-
JM INTERNATIONAL	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,076	824	907	922	936	874	898	769
Operating profit 1)	93	62	67	59	67	63	31	43
Operating margin, %	8.6	7.5	7.4	6.4	7.2	7.2	3.5	5.6
Average operating capital	2,147	2,083	2,060	2,034	1,997	1,993	2,013	2,093
Return on operating capital, % 2)	13.1	12.2	12.4	10.8	10.2	9.2	7.9	8.4
Operating cash flow	–165	156	88	77	–114	71	165	31
Carrying amount, development properties	1,545	1,497	1,533	1,394	1,401	1,255	1,194	1,191
Carrying amount, project properties	7	14	12	13	13	38	36	35
Number of available building rights	10,500	10,500	10,700	10,100	8,900	7,900	8,000	8,200
Number of residential units sold	186	136	135	189	183	296	283	211
Number of housing starts	362	234	116	170	136	271	290	180
Number of residential units in current production	1,454	1,290	1,348	1,602	1,542	1,591	1,431	1,449
1) Of which property sales	0	-	-	-	0	-	–23	-
JM PROPERTY DEVELOPMENT	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	12	11	19	18	46	34	34	28
Operating profit 1)	3	0	17	7	18	7	–1	6
Average operating capital	800	697	623	550	508	455	405	361
Return on operating capital, % 2)	3.4	6.0	7.9	5.6	5.9	7.7	6.9	8.0
Operating cash flow	–203	–65	–77	–71	–49	–56	–65	69
Carrying amount, development properties	10	10	10	35	35	35	35	35
Carrying amount, project properties	1,067	864	779	675	589	516	459	402
Number of available building rights 3)	800	900	900	900	900	1,200	700	700
Number of residential units sold 3)	-	-	-	-	-	-	-	-
Number of housing starts 3)	137	-	-	-	229	-	-	-
Number of residential units in current production 3)	553	416	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 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	683	586	578	437	454	404	447	360
Operating profit	–22	6	8	9	10	12	11	10
Operating margin, %	–3.2	1.0	1.4	2.1	2.2	3.0	2.5	2.8
Operating cash flow	–2	101	–82	32	47	25	–34	–6
JM OTHER	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination)	–134	–137	–136	–118	–155	–112	–136	–111
Operating profit (Group-wide expenses)	–14	–5	–12	–16	–11	–4	–13	–13

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

GROUP – IFRS

CONDENSED CONSOLIDATED INCOME STATEMENT

		JANUARY–DECEMBER		OCTOBER–DECEMBER
ACCORDING TO IFRS, SEK M	2017	2016	2017	2016
Revenue	17,275	15,291	4,562	4,294
Production and operating costs	–13,828	–12,440	–3,659	–3,445
Gross profit	3,447	2,851	903	849
Selling and administrative expenses	–1,005	–935	–254	–252
Gains/losses on the sale of property	14	15	0	0
Operating profit	2,456	1,931	649	597
Financial income and expenses	210	–60	–17	–25
Profit before tax	2,666	1,871	632	572
Taxes	–407	–393	–21	–96
Profit for the period	2,259	1,478	611	476
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign operations	–44	102	–12	1
Items that will not be reclassified as income
Restatement of defined-benefit pensions	53	–81	75	89
Tax attributable to other comprehensive income	–12	18	–17	–19
Comprehensive income for the period	2,256	1,517	657	547
Net profit for the period is attributable to shareholders of the Parent Company	2,259	1,478	611	476
Comprehensive income for the period is attributable to shareholders of the Parent Company	2,256	1,517	657	547
Earnings per share 1), basic, is attributable to shareholders of the Parent Company, SEK	32.00	20.40	8.70	6.60
Earnings per share 1), diluted, is attributable to shareholders of the Parent Company, SEK	31.90	20.30	8.70	6.60
Number of outstanding shares at end of period	69,583,262	71,448,330	69,583,262	71,448,330
Average number of shares, basic	70,642,592	72,526,479	69,977,367	71,752,144
Average number of shares, diluted	70,844,023	72,725,820	70,195,473	71,986,460

1) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO IFRS, SEK M	12/31/2017 3)	12/31/2016 3)
ASSETS
Non-current assets	209	230
Project properties	1,074	602
Development properties	7,543	7,121
Participations in tenant-owners associations, etc.	309	233
Work in progress	2,291	2,073
Current receivables	2,949	2,553
Cash and cash equivalents	2,572	1,520
Total current assets	16,738	14,102
Total assets	16,947	14,332
EQUITY AND LIABILITIES 1) 2)
Equity	6,043	4,951
Non-current interest-bearing liabilities	203	517
Other non-current liabilities	273	168
Non-current provisions	2,619	2,236
Total non-current liabilities	3,095	2,921
Current interest-bearing liabilities	1,728	2,055
Other current liabilities	5,972	4,304
Current provisions	109	101
Total current liabilities	7,809	6,460
Total equity and liabilities	16,947	14,332
Pledged assets	744	688
Contingent liabilities	9,993	9,451
1) Of which project funding JM International	1,857	1,852
2) Of which liabilities for property acquisition	794	654

3) Comparative figures were restated due to reclassification of project funding in JM International.

To view the restatement table, refer to the document "Reclassification of project funding in JM International" at jm.se/investors

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–DECEMBER
SEK M	2017	2016
Opening balance at beginning of period	4,951	4,521
Total comprehensive income for the period	2,256	1,517
Dividend	–675	–602
Conversion of convertible loan	10	13
Equity component of convertible debentures	1	2
Buy-back of shares	–500	–500
Closing balance at the end of the period	6,043	4,951

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		JANUARY–DECEMBER	OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Cash flow from operating activities before change in working
capital and taxes	3,182	2,213	1,108	666
Paid tax	–361	–413	–48	–89
Investment in development properties, etc.1)	–2,494	–2,215	–883	–1,089
Payment on account for development properties, etc.2)	2,038	2,255	378	544
Investment in project properties	–490	–242	–202	–72
Sale of project properties	6	1	6	-
Change in current liabilities/receivables	522	–27	–87	373
Cash flow from operating activities	2,403	1,572	272	333
Cash flow from investing activities	300	–6	–3	–1
Loans raised	214	300	61	114
Amortization of debt	–298	–910	–64	–14
Loans raised, project funding	792	923	285	184
Amortization of debt, project funding	–1,182	–538	–412	–149
Buy-back of shares	–500	–500	–125	–125
Dividend	–675	–602	-	-
Cash flow from financing activities	–1,649	–1,327	–255	10
Cash flow for the period	1,054	239	14	342
Cash and cash equivalents at end of the period	2,572	1,520	2,572	1,520
1) Of which investment in participations in tenant-owners associations and freehold
residential units	–575	–283	–208	–117
2) Of which sale of participations in tenant-owners associations and freehold residential units	495	257	192	73

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

ACCOUNTING PRINCIPLES

This year-end report and interim report for the fourth quarter 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 principles and methods of calculation for the Group have not changed compared to the description on pages 68-71 of the 2016 Annual Report with the exception of the reclassification of project funding in JM International. Project funding was previously reported against costs incurred in the balance sheet item "Work in progress", but as of the third quarter 2017 it is being reported as an interest-bearing and non-interest-bearing liability. The comparative figures have been restated and are presented in the document, "Reclassification of project funding in JM International" at jm.se/investors. The reclassification has not resulted in any changes to segment reporting, project management or the risk profile in JM's international operations.

JM's segment reporting differs from IFRS in two respects. In its segment reporting, revenue for JM International is recognized using the percentage of completion method in accordance with IAS 11.

In addition, JM International's project funding is recorded as a deduction item to "Revenue less progress billings" or "Progress billings in excess of recognized revenue" and raised/repaid project funding is reported in the cash flow from operating activities. These principles serve in JM's internal governance and follow-up as a basis for the Group's income statements and balance sheets as a whole.

JM makes the assessment that segment reporting most accurately reflects the economic implications of JM's business at the same time as it correlates well with the Group's internal governance, which is based on the Group's cash flows, risk profile and capital allocation.

IFRS 15

IFRS 15 Revenue from Contracts with Customers refers to the accounting of revenue from contracts and from the sale of some non-financial assets. The new standard must be applied as of 2018 and replaces the existing revenue recognition standards. JM has been following the work with the new standard for revenue recognition for a long time. The company has met with representatives of IASB on a number of occasions and conducted regular evaluations of the work with the new standard.

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,

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANY

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 does not introduce any change to JM's current revenue recognition principles.

IFRS 9

IFRS 9 Financial Instruments refers to the reporting of financial instruments. The new standard must be applied as of 2018 and replaces IAS 39. 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.

	JANUARY–DECEMBER
SEK M	2017	2016
Net sales	11,602	11,149
Production and operating costs	–8,878	–8,863
Gross profit	2,724	2,286
Selling and administrative expenses	–699	–648
Gains/losses on the sale of property	14	–23
Operating profit	2,039	1,615
Financial income and expenses	310	159
Profit before appropriations and tax	2,349	1,774
Appropriations	–167	–147
Profit before tax	2,182	1,627
Taxes	–288	–322
Profit for the period	1,894	1,305

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK M	12/31/2017	12/31/2016
Assets
Non-current assets	1,221	1,247
Current assets	10,155	8,191
Total assets	11,376	9,438
Equity and liabilities
Equity	3,050	2,309
Untaxed reserves	2,360	2,170
Provisions	1,334	937
Non-current liabilities	340	312
Current liabilities	4,292	3,710
Total equity and liabilities	11,376	9,438
Pledged assets	169	169
Contingent liabilities	10,162	9,646

RECONCILIATION BETWEEN SEGMENT REPORTING AND IFRS

CONSOLIDATED INCOME STATEMENT

		JANUARY–DECEMBER
SEK M	2017	2016	2017	2016
Revenue for the period (segment reporting)	17,008	15,752	4,551	4,296
Restatement JM International	267	–461	11	–2
Revenue for the period (IFRS)	17,275	15,291	4,562	4,294
Operating profit/loss for the period (segment reporting)	2,369	2,011	638	597
Restatement JM International	87	–80	11	0
Operating profit/loss for the period (IFRS)	2,456	1,931	649	597
Profit/loss for the period (segment reporting)	2,194	1,540	606	474
Restatement JM International	65	–62	5	2
Profit/loss for the period (IFRS)	2,259	1,478	611	476

CONSOLIDATED BALANCE SHEET

SEK M	12/31/2017	12/31/2016
Balance sheet total (segment reporting)	15,405	12,848
Restatement JM International	–315	–368
Reclassification project funding JM International, interest-bearing	1,396	1,852
Reclassification project funding JM International, non-interest-bearing 1)	461	-
Balance sheet total (IFRS)	16,947	14,332
1) Billing on account to customers

CONSOLIDATED EQUITY

SEK M	12/31/2017	12/31/2016
Equity (segment reporting)	6,178	5,158
Restatement JM International	–135	–207
Equity (IFRS)	6,043	4,951

GROUP KEY FIGURES

%	12/31/2017	12/31/2016
Equity/assets ratio (segment reporting)	40	40
Equity/assets ratio (IFRS)	35	35

CONSOLIDATED CASH FLOW

	JANUARY–DECEMBER		OCTOBER–DECEMBER
SEK M	2017	2016	2017	2016
Cash flow from operating activities (segment reporting)	2,013	1,957	145	368
Reclassification project funding JM International	390	–385	127	–35
Cash flow from operating activities (IFRS)	2,403	1,572	272	333

CONSOLIDATED INTEREST-BEARING NET LIABILITIES/RECEIVABLES

SEK M	12/31/2017	12/31/2016
Interest-bearing net liabilities (+)/receivables (–) at end of period
(segment reporting)	–790	435
Reclassification project funding JM International	1,396	1,852
Interest-bearing net liabilities (+)/receivables (–) at end of period (IFRS)	606	2,287

Stockholm, February 1, 2018 JM AB (publ)

Johan Skoglund President and Chief Executive Officer

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 2,500 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.

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

PRESS RELEASES, Q4 2017

October 6	JM AB's Nomination Committee for the 2018 Annual
	General Meeting
October 19	Susanne Persson new business unit manager for JM
	Residential Sweden
October 26	Interim report January – September 2017
November 21	Changes to JM AB's Nomination Committee for the
	2018 Annual General Meeting
December 15	JM acquiring property in Sköndal, Stockholm

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 February 1, 2018.

This information is information that JM AB is obliged to make

FOR MORE INFORMATION PLEASE CONTACT:

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

FINANCIAL CALENDAR

DISCLOSURES

Interim Report January - March
Interim Report January - June
Interim Report January - September

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

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