JM — Interim / Quarterly Report 2021

Oct 28, 2021

Interim Report January–September 2021

JM GROUP

CONTINUED HIGH DEMAND AND GOOD PROFITABILITY

JANUARY–SEPTEMBER 2021

Revenue decreased to SEK 10,541m (10,858).

Operating profit increased to SEK 1,460m (1,239). The operating margin increased to 13.9 percent (11.4).

Gains from sale of properties and from joint venture of SEK 194m (19) are included in the operating profit.

Profit before tax increased to SEK 1,416m (1,185). Profit after tax increased to SEK 1,145m (932).

Return on equity for the past twelve months increased to 22.8 percent (18.8). Earnings per share during the nine-month period increased to SEK 16.50 (13.30).

Consolidated cash flow including net investment in properties amounted to SEK 1,371m (427).

The number of residential units sold increased to 3,279 (2,403), and housing starts increased to 2,544 (2,223).

JULY–SEPTEMBER 2021

Revenue increased to SEK 3,485m (3,382).

Operating profit increased to SEK 445m (399). The operating margin increased to 12.8 percent (11.8).

Gains from joint venture of SEK 16m (0) are included in the operating profit.

Profit before tax increased to SEK 432m (383). Profit after tax increased to SEK 333m (302).

Consolidated cash flow including net investment in properties amounted to SEK 487m (−165).

The number of residential units sold totaled 808 (956), and housing starts were 817 (855).

ACCORDING TO SEGMENT REPORTING	JANUARY–SEPTEMBER		JULY-SEPTMEBER			OCT–SEP FULL YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue	10,541	10,858	3,485	3,382	15,071	15,388
Operating profit	1,460	1,239	445	399	2,249	2,028
Operating margin, %	13.9	11.4	12.8	11.8	14.9	13.2
Profit before tax	1,416	1,185	432	383	2,186	1,955
Cash flow from operating activities	1,371	427	487	−165	2,659	1,715
Return on equity, %					22.8	20.8
Equity/assets ratio, %	48	45				47
Earnings per share, SEK	16.50	13.30	4.80	4.30	25.70	22.50
Number of residential units sold 1) 2)	3,279	2,403	808	956	4,902	4,026
Number of housing starts 3) 4)	2,544	2,223	817	855	3,520	3,199
Number of residential units in current production	7,722	7,829				7,976
Revenue according to IFRS	10,723	10,822	3,120	3,422	16,192	16,291
Operating profit according to IFRS	1,460	1,259	422	394	2,219	2,018
Earnings per share according to IFRS, SEK	16.20	13.40	4.40	4.20	24.90	22.00
1) Of which rental units in JM Property Development 2) Of which residential units in JM International to investors 3) Of which rental units in JM Property Development	320 437 –	– 170 –	– 78 –	– 101 –	738 437 –	418 170 –
4) Of which residential units in JM International to investors	359	170	–	101	359	170

For the Group's income statement and balance sheet in accordance with IFRS, IFRS 15 Revenue from Contracts with Customers is applied, which means that revenue and profit/ loss from 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 Group's calculations according to IFRS are presented on pages 22–23.

For definitions of key financial figures, see "Definitions 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.

This Interim Report is a translation of the original text in Swedish which is the official version.

Group

A WORD FROM THE CEO

CONTINUED HIGH DEMAND

We continued to have high demand in the third quarter at good price levels in all our markets. This has also meant a good level of housing starts that is in line with our annual plan. Our digital solutions in the sales work continued to work very well. Revenue and profit are dampened by the lower housing starts and price levels for projects started in Stockholm in the past few years. The lead time in JM's business is several years from the development of the housing market to recognition in the income statement. At the same time, the business and earnings developed very favorably in Norway, Finland and the rest of Sweden during the quarter.

The supply of newly produced residential units on the market decreased further in Stockholm and the rest of Sweden at the same time as the transaction volume continues to be high.

We assess the underlying demand for housing to continue to be good on our markets. The reservation and sales level is high in the current production of residential units on all our markets. This provides continued good conditions for housing starts and stable cash flow moving forward.

Assuming that the market continues to be favorable, there is a good possibility of exceeding the target level of 3,800 housing starts in 2021. An increased level of housing starts is a priority to continue to meet the high demand for JM's residential units.

INCREASED HOUSING STARTS ACCORDING TO PL AN IN STOCKHOLM

We have seen continued high demand in Stockholm in the third quarter, with good demand for our residential units in current production.

Sales in Stockholm were stable but limited by available supply and timing of contract signings in freehold apartment projects. In the third quarter, JM Residential Stockholm sold 261 residential units, compared to 332 in the second quarter. The housing business in Stockholm continued to have good profitability and increased housing starts according to plan during the third quarter. Revenue and operating profit, however, continue to be negatively impacted during the year by the lower housing starts for projects during the years 2018–2020 and the lower price levels from 2017 through the first half of 2020.

STRONG SALES IN NORWAY, FINL AND AND THE REST OF SWEDEN

The housing business in the rest of Sweden showed strong sales, good profitability, and a good level of housing starts during the third quarter.

In Norway, activity in the housing market continued to develop favorably during the third quarter with stable prices. The housing market in Finland showed good development as well.

The international business also continued to develop very well during the quarter in terms of both revenue and profit.

GOOD PROJECT PORTFOLIO AND STRONG FINANCIAL POSITION

We are well-positioned with a good project portfolio that is continuously developed for the housing of the future at the same time as our strong financial position allows us freedom of action. The balance sheet allows both growth in JM's business and stable value transfer to shareholders. The fundamental and long-term conditions are favorable for our business, and I continue to expect good development.

Johan Skoglund, President and CEO

"We continued to have high demand in the third quarter at good price levels in all our markets"

MARKET, SALES AND HOUSING STARTS JANUARY–SEPTEMBER 2021

The housing market in Stockholm continued to improve during the first nine months, with a high level of residential units sold. Profitability continued to be good, and housing starts in the third quarter have had a normal level of reservations.

The housing business in the rest of Sweden showed good profitability, with strong sales and a good level of housing starts in a stable market.

In Norway and Finland, the activity in the housing market continued to develop favorably, with stable prices during the 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 increased to 3,279 (2,403)1) 2). The percentage of sold and reserved residential units in relation to current production amounted to 78 percent (71), with an interval of 60–65 percent considered normal. JM Residential Stockholm sold 950 residential units (866), JM Residential Sweden sold 901 (828), JM International sold 1,108 (709), and JM Property Development sold 320 (0).

The number of housing starts increased to 2,544 (2,223)3)4). JM Residential Stockholm started production on 888 residential units (750), JM Residential Sweden on 877 (822), JM International on 779 (651) and JM Property Development on 0 (0).

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

The number of residential units in current production amounted to 7,722 (7,829), of which 335 are rental units (463) in JM Property Development.

1) Of which 320 rental units (0) in JM Property Development

2) Of which 437 residential units (170) in JM International and JM Residential Sweden to investors

3) Of which 0 rental units (0) in JM Property Development

4) Of which 359 residential units (170) in JM International and JM Residential Sweden to investors

REVENUE , OPER ATING PROFIT AND OPERATING MARGIN

JANUARY–SEPTEMBER 2021

Consolidated revenue according to segment reporting decreased for the nine-month period to SEK 10,541m (10,858). Revenue restated according to IFRS decreased to SEK 10,723m (10,822). The lower revenue according to segment reporting is primarily attributable to a lower level of current production.

Operating profit according to segment reporting increased to SEK 1,460m (1,239), and the operating margin increased to 13.9 percent (11.4). Operating profit restated according to IFRS increased to SEK 1,460m (1,259). The restatement is related to JM International, with a negative effect on earnings of SEK −18m (0), and leases according to IFRS 16, with a positive effect on earnings of SEK 18m (20).

During the nine-month period, properties were sold for SEK 542m (34) with gains of SEK 162m (19), and income from joint venture amounted to SEK 32m (0), primarily attributable to value adjustments regarding rental properties.

Rental income from JM's project properties amounted to SEK 30m (60). Net rental income was SEK 15m (43).

JM has not received any goverment support during the first nine months attributable to COVID-19.

JULY– SEPTEMBER 2021

Consolidated revenue according to segment reporting for the third quarter increased to SEK 3,485m (3,382). Revenue restated according to IFRS decreased to SEK 3,120m (3,422).

Operating profit according to segment reporting increased to SEK 445m (399), and the operating margin increased to 12.8 percent (11.8). Operating profit restated according to IFRS increased to SEK 422m (394). The restatement is related to JM International, with a negative effect on earnings of SEK −30m (−8), and leases according to IFRS 16, with a positive effect on earnings of SEK 7m (3).

During the third quarter, properties were sold for SEK 0m (4) with gains/losses of SEK 0m (1), and income from joint venture amounted to SEK 16m (0), primarily attributable to value adjustments regarding rental properties.

Rental income from JM's project properties amounted to SEK 9m (21). Net rental income was SEK 5m (16).

4

OPERATING PROFIT BY BUSINESS SEGMENT, SEK M	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	559	627	181	185	858	926
JM Residential Sweden	482	476	145	141	663	657
JM International	276	140	111	70	412	276
JM Property Development	169	–	12	3	347	178
JM Construction	9	23	3	3	17	31
Group-wide expenses	−35	−27	−7	−3	−48	−40
Total	1,460	1,239	445	399	2,249	2,028
Of which property sales	162	19	–	1	330	187
Of which income from joint venture	32	–	16	–	36	4

OPERATING MARGIN BY BUSINESS SEGMENT, %	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	15.0	14.5	15.4	14.1	14.9	14.6
JM Residential Sweden	15.3	15.6	15.2	15.4	15.5	15.7
JM International	8.8	5.3	9.4	8.1	9.7	7.4
JM Construction	1.4	2.4	1.5	0.9	1.8	2.5

RESIDENTIAL UNITS IN CURRENT PRODUCTION	9/30/2021	9/30/2020	12/31/2020
Number of residential units in current production 1) 2)	7,722	7,829	7,976
Percentage of sold residential units in current production, % 3)	64	55	60
Percentage reserved residential units in current production, %	14	16	14
Percentage sold and reserved residential units in current production, %	78	71	74
1) Of which rental units and residential care units in current production in JM Property Development ‑ not included in the percentage of sold and reserved residential units in current production	335	463	463
Including residential units in projects where costs incurred are only reported as project properties under construction	320	320	320
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	9/30/2021	09/30/2021	12/31/2021
Completed production, number of unsold units 1)	113	140	143
The number of unsold residential units in the balance sheet recognized as "Participations in tenant-owners associations, etc."	68	107	85

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

RESIDENTIAL BUILDING RIGHTS JANUARY–SEPTEMBER 2021

The number of available building rights at the end of the ninemonth period amounted to 36,200 (37,900), of which 19,500 (21,100) are recognized in the balance sheet. Capital tied up in building rights (development properties in the balance sheet) for residential units decreased to SEK 7,975m (8,392).

JM acquired development properties for residential units during the nine-month period for SEK 1,235m (773), of which SEK 529m relates to JM Residential Stockholm, SEK 299m to JM Residential Sweden and SEK 407m to JM International.

FINANCIAL ITEMS JANUARY–SEPTEMBER 2021

Net financial items improved somewhat compared to the previous year attributable to somewhat lower average interest-bearing liabilities and lower average interest rates.

The total interest-bearing liability according to segment reporting was SEK 2,435m (2,723), of which the provision for pension liabilities comprised SEK 1,751m (1,729). At the end of the nine-month period, the average interest rate for the total interestbearing loan stock including pension liabilities was 1.5 percent (1.7). The average term for fixed-rate loans excluding the pension liability was 0.4 years(0.3).

Consolidated available liquidity increased to SEK 5,822m (5,114). Aside from cash and cash equivalents of SEK 3,022m (2,314), 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 2.3 years (2.6).

Interest-bearing net receivables including the pension liability according to segment reporting totaled SEK 587m (−409) at the end of the period. Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 557m (743). Of these liabilities, SEK 185m (64) were current.

The valuation of financial assets and liabilities shows no significant difference between carrying amount and fair value.

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Financial income	3	5	2	2	4	6
Financial expenses	−47	−59	−15	−18	−67	−79
Financial income and expenses	−44	−54	−13	−16	−63	−73
	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2021	2020	2021	2020	2020/2021	2020

Interest-bearing net liabilities (+)/-receivables (−) at beginning
of period	−300	420	−244	247	409	420
Change in interest-bearing liabilities/-receivables	−287	−11	−343	162	−996	−720
Interest-bearing net liabilities (+)/-receivables (−) at end of
period	−587	409	−587	409	−587	−300

CASH FLOW JANUARY–SEPTEMBER 2021

Cash flow from operating activities according to segment reporting was SEK 1,371m (427). Net investments in development properties resulted in a cash flow of SEK −114m (193). The decreased holdings of unsold residential units in the balance sheet resulted in a cash flow of SEK 64m (−182). Consolidated cash flow attributable to project properties (sales minus investment) during the nine-month period was SEK 188m (−366), including payment received in the second quarter for property sales of SEK 550m.

JULY– SEPTEMBER 2021

Cash flow from operating activities was SEK 487m (−165) during the third quarter. Net investments in development properties resulted in a cash flow of SEK 242m (−149). The increased holdings of repurchased residential units resulted in a cash flow of SEK −30m (81). Consolidated cash flow attributable to project properties (sales minus investment) amounted to SEK −74m (−121).

RISKS AND UNCERTAINTY FACTORS

JM's risks and risk management are presented in the 2020 Annual Report on pages 32–37 and 83. Aside from the uncertainty related to COVID-19, uncertainty has arisen regarding the supply of Swedish cement.

COVID-19 and its effects have created uncertainty and risks for some time. However, JM stands strong in terms of both its business model and its finances. The percentage of reserved and sold residential units in current production is at a high level. This, together with very limited disruptions in terms of staffing and supplier chains, presents possibilities for keeping the business reasonably stable even during a weaker market where the risks are judged to have decreased in 2021.

Cement supply and local cement production through the operation of a limestone quarry is exposed to risk in Sweden due to an uncertain licensing process between a market-leading producer and related authorities. An amendment to the law has been adopted to enable the continuation of local cement production through the government review of a time-limited license to operate a limestone quarry The amendment to the law went into effect on 15 October 2021.

EXPOSURE TO COMMODITY PRICES

The price of steel and wood increased during the year. Long-term agreements with JM's suppliers mean this is having a limited impact on the income statement. In addition, cost increases on raw materials are offset on a regular basis through streamlining.

For JM's Swedish operations, clean steel and wood constitute around 4 percent and 2 percent, respectively, of total costs. Concrete prices have been stable during the year for JM, where the material cost for pure concrete is judged to constitute around 2 percent of total costs.

REPURCHASE AND HOLDINGS OF OWN SHARES

Following the Annual General Meeting on March 24, 2021, 783,400 shares were bought back for SEK 250m. Holdings of own shares subsequently total 783,400. The number of outstanding shares, excluding holdings of treasury shares, at September 30, 2021, totals 68,910,847.

PERSONNEL

The number of employees in the nine-month period decreased to 2,445 (2,567). The number of wage-earners decreased to 888 (996), and the number of salaried employees decreased to 1,557 (1,571). Current staffing is aligned with the current and increasing project volume, and adjustments are made on a regular basis. Demand on the labor market for qualified project development skills continued to be strong.

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 level of the average prices on the existing home market did not change during the third quarter. The total supply of residential units has been normal, and the supply of newly produced residential units continued to decrease in the third quarter.

Competition for well-situated land for housing is considered to have increased during the third quarter. Prices continued to be at a level that requires selective acquisition.

The housing market in Stockholm was stable with continued high demand during the third quarter. Customers are showing considerable interest in JM's projects with good sales in the third quarter, which were limited, however, by available supply and the timing of contract signing in freehold apartment projects. The

willingness of customers to sign a contract early in the process is still at a normal level.

Profitability continued to be good, and the number of housing starts increased to a higher level in the nine-month period. Revenue and operating profit, however, continue to be negatively impacted during the year by the lower housing starts for projects during the years 2018–2020 and the lower prices from 2017 through the first half of 2020.

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

Production was started in the third quarter on 351 residential units in apartment buildings in Stockholm and Täby.

JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
2021	2020	2021	2020	2020/2021	2020
3,739	4,335	1,179	1,310	5,762	6,358
559	627	181	185	858	926
15.0	14.5	15.4	14.1	14.9	14.6
				4,963	5,372
				17.3	17.2
827	681	394	143	1,210	1,064
4,146	4,587				4,246
11,000	12,600				12,500
950	866	261	299	1,424	1,340
888	750	351	252	1,170	1,032
2,703	3,095				2,878
802	898				872

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.

Average prices on the existing home market were stable in the third quarter, as prices on each submarket increased slightly or remained the same.

The total supply of newly produced residential units decreased compared to the previous quarter and is still at a low level. The supply of newly produced homes in Gothenburg and Malmö was at a lower level, and in Uppsala the supply was somewhat higher than in the corresponding period last year.

Competition for land for residential purposes continued to be tough during the third quarter for most of the business segment's submarkets.

Interest in JM's projects continued to be strong during the third quarter, with very good sales. The customers' willingness to sign a contract early in the process continues to be at a normal level.

Operating profit and the operating margin were in line with the corresponding period in the previous year. Demand is high and the price development is positive in basically all submarkets for JM's residential units.

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

Production was started in the third quarter on 238 residential units, all of them in apartment buildings in Malmö, Örebro, Västerås and Uppsala.

Around 500 building rights were acquired in Gothenburg, Örebro, and Västerås.

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue	3,147	3,056	951	913	4,284	4,193
Operating profit	482	476	145	141	663	657
Operating margin, %	15.3	15.6	15.2	15.4	15.5	15.7
Average operating capital					1,332	1,307
Return on operating capital, %					49.8	50.3
Operating cash flow	420	242	−60	60	690	512
Carrying amount, development properties	1,526	1,530				1,451
Number of available building rights	10,300	10,200				9,900
Number of residential units sold 1)	901	828	280	250	1,281	1,208
Number of housing starts 2)	877	822	238	285	1,127	1,072
Number of residential units in current production	2,226	2,138				2,172
Number of employees	567	597				591
1) Of which residential units to investors	–	69	–	–	–	69
2) Of which residential units to investors	–	69	–	–	–	69

1) Of which property sales

JM International

The JM International business segment develops residential projects in Norway and Finland. Operations include acquisitions of development properties, planning, pre-construction, production and sales of residential units. Revenue recognition for the business segment is reported using the percentage of completion method.

Business segment revenue is higher than in the previous year. Operating profit and the operating margin increased to SEK 276m (140) and 8.8 percent (5.3), respectively. The higher profit is due primarily to a strong market, good sales and an increase in current production. The second quarter in the previous year was burdened by costs for adapting the Norwegian operations to thencurrent market conditions.

Cash flow was strengthened during the nine-month period due to a decrease in working capital.

NORWAY

Prices on the existing home market have been stable during the third quarter, and the activity level was high.

JM Norway's revenue amounted to SEK 2,102m (1,910), and operating profit increased to SEK 197m (92). The operating margin increased to 9.4 percent (4.8).

Good sales during the third quarter strengthened the operating profit and the operating margin.

During the third quarter, 153 residential units (171) were sold, and production started on 228 residential units (58) in the Oslo region, Vestfold and Trondheim. The number of residential units in current production amounted to 1,302 (1,206).

During the third quarter, 25 building rights were acquired. Available building rights correspond to 7,800 residential units (8,500).

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
SEK M	2021	2020	2021	2020	OCT–SEPT 2020/2021	2020
Revenue	3,125	2,645	1,185	867	4,227	3,747
‑ of which JM Norway	2,102	1,910	791	587	2,908	2,716
Operating profit 1)	276	140	111	70	412	276
‑ of which JM Norway	197	92	78	43	310	205
Operating margin, %	8.8	5.3	9.4	8.1	9.7	7.4
‑ of which JM Norway	9.4	4.8	9.9	7.3	10.7	7.5
Average operating capital					3,309	3,400
Return on operating capital, %					12.5	8.1
Operating cash flow	383	220	338	−27	489	326
Carrying amount, development properties	2,293	2,265				2,108
Carrying amount, project properties	39	25				33
Number of available building rights	13,300	13,900				14,200
Number of residential units sold 2)	1,108	709	267	407	1,459	1,060
Number of housing starts 3)	779	651	228	318	1,223	1,095
Number of residential units in current production	2,458	2,133				2,463
Number of employees	544	536				530
1) Of which property sales	1	1	–	1	−1	−1
2) Of which residential units to investors	437	101	78	101	437	101
3) Of which residential units to investors	359	101	–	101	359	101

FINL AND

The activity on the housing market in the Helsinki region continued to be stable at a high level. Customers are showing strong interest in JM's projects, and their willingness to convert reservations to contracts was at a high level during the third quarter. The prices on the existing home market in the Helsinki region were stable during the quarter.

JM Finland is reporting a positive development in revenue and earnings.

During the third quarter, 114 residential units (236) were sold, and production started on 0 residential units (260). Of the residential units sold, 78 (101) were residential units to investors. The number of residential units in current production amounted to 1,156 (927).

During the third quarter, no building rights were acquired. Available building rights correspond to 5,500 residential units (5,400).

JM Property Development

The JM Property Development business segment primarily develops rental and residential care units and commercial properties in Greater Stockholm. The business segment's entire portfolio comprises project development properties. The operations include JM@ home, which offers economic and technical management services to tenant-owners associations as well as housing services.

Business segment revenue increased to SEK 182m (112), of which rental income was SEK 30m (60). Contracting revenue and sales of services amounted to SEK 152m (52). Operating profit increased to SEK 169m (0), of which income from joint venture was SEK 32m (0), primarily attributable to value adjustments regarding rental properties.

The operating profit is burdened by development costs for the new business operations, JM@home.

Net rental income for project properties was SEK 14m (43).

Cash flow for the nine-month period is positive due to payment received in the second quarter for the sale of a project property and is burdened on an ongoing basis by investments in project properties.

During the second quarter, the completed rental property Manegen in Täby, with 128 residential units, and one rental

property in current production, Havreflingan in Järfälla with 192 residential units, were sold. The legal title for Manegen was transferred in the second quarter of 2021 with recognized profit of SEK 161m and a positive cash-flow effect of SEK 550m. The transfer for Havreflingan and profit recognition will take place in the fourth quarter of 2021.

Production continues for another rental project, Valla Park in Sundbyberg, consisting of 143 rental units. Occupancy and completion are planned for 2022, and the legal title for the rental property will be transferred to the external buyers in conjunction with completion.

In the first quarter, production was started on the office project K1 Karlbergs Strand in Karlberg, Solna, on JM's own balance sheet, covering approximately 20,000 m2 . The majority of the property will serve as JM's new head office.

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue	182	112	65	42	239	169
Operating profit 1) 2)	169	0	12	3	347	178
Average operating capital					1,407	1,513
Return on operating capital, %					24.7	11.8
Operating cash flow	137	−376	−97	−155	797	284
Carrying amount, development properties	10	10				10
Carrying amount, project properties	1,220	1,766				1,213
Number of available building rights 3)	1,600	1,200				1,200
Number of residential units sold 3)	320	–	–	–	738	418
Number of housing starts 3)	–	–	–	–	–	–
Number of residential units in current production 3)	335	463				463
Number of employees	78	75				78
1) Of which property sales	161	–	–	–	331	170
2) Of which income from joint venture	32	–	16	–	36	4

3) Refers to rental units and residential care units.

JM Construction

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

Demand in the civil engineering market in Stockholm is at a good level but with greater competition for the assignments. Business segment revenue decreased due to lower external activity for JM in the civil engineering operations, where profitability is prioritized over volume. The business segment focuses on projects that have synergies with residential project development.

Cash flow during the first nine months is in balance.

In the third quarter, the business segment received a number of external assignments within its civil engineering operations, the largest of which is conduit and street works for a new housing area in southern Stockholm for the City of Stockholm and a framework agreement for speed reduction measures, also for the City of Stockholm.

The largest ongoing external assignments are the infrastructure project in Tyresö (Tyresö Municipality), groundworks for Arlanda Terminal 5 (IN3PRENÖR AB), detailing work in Norra Djurgårdsstaden (City of Stockholm), groundworks and conduit work in Ursvik Västra (City of Sundbyberg), and the restoration and renovation of an existing road network in Huddinge (Huddinge Municipality). The business segment also has several ongoing internal projects.

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue 1)	656	946	200	330	963	1,253
Operating profit 2)	9	23	3	3	17	31
Operating margin, %	1.4	2.4	1.5	0.9	1.8	2.5
Operating cash flow	28	−74	4	−55	37	−65
Carrying amount, development properties	16	19				16
Number of employees	255	262				257
1) Of which internal	308	236	95	80	404	332
2) Of which property sales	–	18	–	–	–	18

Group – segment reporting

CONDENSED CONSOLIDATED INCOME STATEMENT

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue	10,541	10,858	3,485	3,382	15,071	15,388
Production and operating costs	−8,532	−8,927	−2,849	−2,786	−12,212	−12,607
Gross profit	2,009	1,931	636	596	2,859	2,781
Selling and administrative expenses	−743	−711	−207	−198	−976	−944
Gains/losses on the sale of property, etc. 1)	194	19	16	1	366	191
Operating profit	1,460	1,239	445	399	2,249	2,028
Financial income and expenses	−44	−54	−13	−16	−63	−73
Profit before tax	1,416	1,185	432	383	2,186	1,955
Taxes	−271	−253	−99	−81	−398	−380
Profit for the period	1,145	932	333	302	1,788	1,575
Other comprehensive income	173	−120	−18	−28	78	−215
Comprehensive income for the period	1,318	812	315	274	1,866	1,360
Earnings per share 2) , diluted, SEK	16.50	13.30	4.80	4.30	25.70	22.50
Average number of shares, diluted	69,753,728	70,039,461	69,485,841	70,125,557	69,810,522	70,061,421
1) Of which income from joint venture	32	–	16	–	36	4

2) Net profit/loss for the period.

CONDENSED CONSOLIDATED BAL ANCE SHEET

ACCORDING TO SEGMENT REPORTING, SEK M	9/30/2021	09/30/2021	12/31/2021
ASSETS
Non-current assets	405	194	278
Project properties	1,259	1,791	1,246
Development properties	7,991	8,411	7,831
Participations in tenant-owners associations, etc.	432	558	445
Current receivables 1)	3,475	3,847	3,828
Cash and cash equivalents	3,022	2,314	3,037
Total current assets	16,179	16,921	16,387
Total assets	16,584	17,115	16,665
EQUITY AND LIABILITIES 2)
Equity	8,023	7,704	7,817
Non-current interest-bearing liabilities	308	362	354
Other non-current liabilities	373	679	372
Non-current provisions	3,100	3,398	3,290
Total non-current liabilities	3,781	4,439	4,016
Current interest-bearing liabilities	376	632	579
Other current liabilities	4,255	4,198	4,120
Current provisions	149	142	133
Total current liabilities	4,780	4,972	4,832
Total equity and liabilities	16,584	17,115	16,665
1) Of which receivables from property sales	–	51	1
2) Of which liabilities for property acquisition	581	767	459

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–SEPTEMBER	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2021	2020	2020
Opening balance at beginning of period	7,817	7,326	7,326
Total comprehensive income for the period	1,318	812	1,360
Dividend	−887	−435	−870
Conversion of convertible loan	25	–	–
Buy-back of shares	−250	–	–
Equity component of convertible debentures	–	1	1
Closing balance at the end of the period	8,023	7,704	7,817

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2021	2020	2021	2020	2020/2021	2020
Cash flow from operating activities before change in
working capital and taxes 1) 2)	1,295	1,016	351	364	1,999	1,720
Tax paid	−438	−385	−110	−121	−537	−484
Investment in development properties	−1,130	−971	−339	−498	−1,688	−1,529
Payment on account for development properties	1,016	1,164	581	349	1,862	2,010
Investment in project properties	−362	−366	−74	−121	−687	−691
Sale of project properties	550	–	–	–	1,610	1,060
Change in current liabilities/receivables	440	−31	78	−138	100	−371
Cash flow from operating activities	1,371	427	487	−165	2,659	1,715
Cash flow from investing activities	−1	−1	−1	–	−79	−79
Loans raised	360	243	1	104	570	453
Amortization of liabilities	−611	−312	−310	−197	−870	−571
Buy-back of shares	−250	–	−125	–	−250	–
Dividends	−887	−435	–	–	−1,322	−870
Cash flow from financing activities	−1,388	−504	−434	−93	−1,872	−988
Cash flow for the period	−18	−78	52	−258	708	648
Cash and cash equivalents at end of the period	3,022	2,314	3,022	2,314	3,022	3,037
1) Of which the purchase of participations in tenant-owners associations and freehold residential units	−601	−1,041	−177	−206	−785	−1,225
2) Of which the sale of participations in tenant-owners associations and freehold residential units	665	859	147	287	954	1,148

GROUP KEY FIGURES

ACCORDING TO SEGMENT REPORTING, %	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
	2021	2020	2021	2020	2020/2021	2020
Operating margin	13.9	11.4	12.8	11.8	14.9	13.2
Return on equity					22.8	20.8
Return on capital employed					21.6	19.6
Debt/equity ratio, multiple	–	0.1				–
Equity/assets ratio	48	45				47

ACCORDING TO SEGMENT REPORTING

REVENUE BY COUNTRY

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Sweden	7,416	8,213	2,300	2,516	10,844	11,641
Norway	2,102	1,910	791	587	2,908	2,716
Finland	1,023	735	394	279	1,319	1,031
Belgium	–	–	–	–	–	–
Total	10,541	10,858	3,485	3,382	15,071	15,388

REVENUE BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	3,739	4,335	1,179	1,310	5,762	6,358
JM Residential Sweden	3,147	3,056	951	913	4,284	4,193
JM International	3,125	2,645	1,185	867	4,227	3,747
JM Property Development	182	112	65	42	239	169
JM Construction	656	946	200	330	963	1,253
Elimination	−308	−236	−95	−80	−404	−332
Total	10,541	10,858	3,485	3,382	15,071	15,388

OPERATING PROFIT BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	559	627	181	185	858	926
JM Residential Sweden	482	476	145	141	663	657
JM International	276	140	111	70	412	276
JM Property Development	169	–	12	3	347	178
JM Construction	9	23	3	3	17	31
Group-wide expenses	−35	−27	−7	−3	−48	−40
Total	1,460	1,239	445	399	2,249	2,028

OPER ATING MARGIN BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
%	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	15.0	14.5	15.4	14.1	14.9	14.6
JM Residential Sweden	15.3	15.6	15.2	15.4	15.5	15.7
JM International	8.8	5.3	9.4	8.1	9.7	7.4
JM Construction	1.4	2.4	1.5	0.9	1.8	2.5

AVER AGE OPER ATING CAPITAL BY BUSINESS SEGMENT

	OCT–SEPT	FULL-YEAR
SEK M	2020/2021	2020
JM Residential Stockholm	4,963	5,372
JM Residential Sweden	1,332	1,307
JM International	3,309	3,400
JM Property Development	1,407	1,513

RETURN ON OPER ATING CAPITAL BY BUSINESS SEGMENT

OCT–SEPT	FULL-YEAR
% 2020/2021	2020
JM Residential Stockholm 17.3	17.2
JM Residential Sweden 49.8	50.3
JM International 12.5	8.1
JM Property Development 24.7	11.8

ACCORDING TO SEGMENT REPORTING

	JULY–SEPTEMBER		APRIL–JUNE JANUARY–MARCH	OCT–DECEMBER	JULY–SEPTEMBER
SEK M	2021	2021	2021	2020	2020
Cost-based effect	254	247	265	318	269
Revaluation effect	336	390	178	255	234
Sales effect	29	80	163	235	68
Total	619	717	606	808	571

PROFIT/LOSS COMPONENTS, HOUSING BUSINESS, PERCENTAGE OF COMPLETION METHOD (GROSS PROFIT)

Starting in Q1 2020, the profit/loss components that are included in gross profit for the housing business are reported. The percentage of completion method in JM and the accounting of gross profit consists of three components: incurred costs (cost-based effect), assessment of expected margin (revaluation effect), and sales rate of projects (sales effect). Profit/loss components are reported quarterly and are not accumulated. The table starts with the business segments' gross operating profit (excluding net rental income from project and development properties) for the housing business. For definitions of profit/loss components in the housing business, see the document entitled "Definitions key financial figures" at jm.se/en/ about-us/investors

REVALUATION EFFECTS – HOUSING BUSINESS

	JULY–SEPTEMBER		APRIL–JUNE JANUARY–MARCH	OCT–DECEMBER	JULY–SEPTEMBER
SEK M	2021	2021	2021	2020	2020
JM Residential Stockholm	95	93	−15	−31	36
JM Residential Sweden	134	191	135	166	136
JM International	107	106	58	120	62
Total	336	390	178	255	234

OPERATING CASH FLOW BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	827	681	394	143	1,210	1,064
JM Residential Sweden	420	242	−60	60	690	512
JM International	383	220	338	−27	489	326
JM Property Development	137	−376	−97	−155	797	284
JM Construction	28	−74	4	−55	37	−65

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

CARRYING AMOUNT, SEK M	9/30/2021	09/30/2021	12/31/2021
JM Residential Stockholm	4,146	4,587	4,246
JM Residential Sweden	1,526	1,530	1,451
JM International	2,293	2,265	2,108
JM Property Development	10	10	10
JM Construction	16	19	16
Total	7,991	8,411	7,831

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

NUMBER	9/30/2021	09/30/2021	12/31/2021
JM Residential Stockholm	11,000	12,600	12,500
JM Residential Sweden	10,300	10,200	9,900
JM International	13,300	13,900	14,200
JM Property Development 1)	1,600	1,200	1,200
Total	36,200	37,900	37,800
Including those carried in the balance sheet (development properties)
JM Residential Stockholm	6,600	7,500	7,300
JM Residential Sweden	5,900	6,600	6,300
JM International	6,500	6,700	6,500
JM Property Development 1)	500	300	300
Total	19,500	21,100	20,400

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
NUMBER	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	950	866	261	299	1,424	1,340
JM Residential Sweden	901	828	280	250	1,281	1,208
JM International	1,108	709	267	407	1,459	1,060
JM Property Development 1)	320	–	–	–	738	418
Total	3,279	2,403	808	956	4,902	4,026

1) Refers to rental units and residential care units.

ACCORDING TO SEGMENT REPORTING

HOUSING STARTS BY BUSINESS SEGMENT

	JANUARY–SEPTEMBER			JULY–SEPTEMBER	OCT–SEPT	FULL-YEAR
NUMBER	2021	2020	2021	2020	2020/2021	2020
JM Residential Stockholm	888	750	351	252	1,170	1,032
JM Residential Sweden	877	822	238	285	1,127	1,072
JM International	779	651	228	318	1,223	1,095
JM Property Development 1)	–	–	–	–	–	–
Total	2,544	2,223	817	855	3,520	3,199

RESIDENTIAL UNITS IN CURRENT PRODUCTION

NUMBER	9/30/2021	9/30/2020	12/31/2020
JM Residential Stockholm	2,703	3,095	2,878
JM Residential Sweden	2,226	2,138	2,172
JM International	2,458	2,133	2,463
JM Property Development 1)	335	463	463
Total	7,722	7,829	7,976

PROJECT PROPERTIES, GROUP

CARRYING AMOUNT, SEK M	9/30/2021	09/30/2020	12/31/2020
Properties under development	1,214	890	1,215
Completed rental unit properties	–	870	–
Completed commercial properties	45	31	31
Total	1,259	1,791	1,246

DEVELOPMENT PROPERTIES, GROUP

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
CARRYING AMOUNT, SEK M	2021	2020	2021	2020	2020/2021	2020
Opening balance at beginning of period	7,831	8,938	8,155	8,724	8,411	8,938
New purchases	1,235	773	407	103	1,484	1,022
Transferred to production	−1,041	−1,096	−581	−346	−1,833	−1,888
Other	−34	−204	10	−70	−71	−241
Closing balance at the end of the period	7,991	8,411	7,991	8,411	7,991	7,831

1) Refers to rental units and residential care units.

1) Proposal by the the Board of Directors

Group five-year overview

ACCORDING TO SEGMENT REPORTING, SEK M	2020	2019	2018	2017	2016
Revenue	15,388	15,692	16,161	17,008	15,752
Operating profit	2,028	2,008	1,886	2,369	2,011
Profit before tax	1,955	1,928	1,817	2,579	1,951
Total assets	16,665	17,593	16,487	15,405	12,848
Cash flow from operating activities	1,715	1,291	−473	2,013	1,957
Interest-bearing net liabilities (+)/receivables (–)	−300	420	546	−790	435
Operating margin, %	13.2	12.8	11.7	13.9	12.8
Return on equity, %	20.8	22.2	22.2	38.7	31.4
Equity/assets ratio, %	47	42	41	40	40
Earnings per share, SEK	22.50	22.50	20.60	31.00	21.20
Dividend per share, SEK	12.75	12.50	12.00	11.00	9.50
Number of available building rights	37,800	35,900	35,900	34,800	32,500
Number of residential units sold	4,026	3,595	2,463	3,100	3,843
Number of housing starts	3,199	3,269	3,135	3,873	4,187
Number of residential units in current production	7,976	7,813	7,835	8,200	7,984

Bunkhagen Södra has JM's first freehold apartments in Täby, just north of Stockholm. This area will offer 50 residential units ranging from studios to 4 bedrooms with different layouts, divided between two buildings of up to five floors, and a number of unique two-story townhouses. The block, which will feature attractive brick and stucco architecture and will have a large, bright courtyard in the middle, is centrally located at Boulevarden, which cuts through the Täby Park district. Bunkhagen Södra offers the choice of intelligent functions, such as digital solutions for reduced energy consumption and other smart installations for more comfort and security every day in the new home. Here, residents will be within walking distance to the commuter train and buses, and, like for all residents of JM's apartments in Täby Park, membership in a car pool is included.

Ten minutes from Uppsala, the Skölstahöjden housing development is starting to take shape only a stone's throw from the city. Next to existing buildings close to nature in popular Skölsta, JM is building 36 family-friendly, freehold single-family homes ranging from 125–156 m2 . The Swan Ecolabel homes consisting of 4–5 bedrooms offer all the amenities needed for an easy family life, with outdoor space, an easy-tocare-for yard and daily services close by. Bordering Skölsta is a popular area with hiking trails, water and grilling areas.

In the growing area Vollebekk in Oslo, JM started production on Passasjen, which consists of Swan Ecolabel apartment buildings, where we in a first stage will offer 116 of a total of 240 residential units. Passasjen's residential units consist of 1–3 bedrooms, offer add-on intelligent functions, and are designed with an urban life in mind. The buildings will have roof terraces and other common areas and meeting places as well as plenty of room not only to park bicycles but also for a workshop, a launderette, and charging for bicycles – all to make everyday life easier. In addition, residents will be one hundred meters from the subway, which arrives in the center of Oslo in less than fifteen minutes, walking distance to schools, daycare and stores, and close to the nature areas Bjeredalen and Grefsenkollen.

Group quarterly overview

ACCORDING TO SEGMENT REPORTING, SEK M		2021 2020
INCOME STATEMENT	Q 3	Q2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	3,485	3,719	3,337	4,530	3,382	3,662	3,814
Production and operating costs	−2,849	−2,980	−2,703	−3,680	−2,786	−3,036	−3,105
Gross profit	636	739	634	850	596	626	709
Selling and administrative expenses	−207	−297	−239	−233	−198	−269	−244
Gains/losses on the sale of property, etc.	16	167	11	172	1	–	18
Operating profit	445	609	406	789	399	357	483
Financial income and expenses	13	−15	−16	−19	−16	−17	−21
Profit before tax	432	594	390	770	383	340	462
Taxes	−99	−91	−81	−127	−81	−74	−98
Profit for the period	333	503	309	643	302	266	364
CONSOLIDATED BALANCE SHEET	9/30	6/30	3/31	12/31	09/30	06/30	03/31
ASSETS
Non-current assets	405	336	298	278	194	200	193
Project properties	1,259	1,269	1,387	1,246	1,791	1,643	1,498
Development properties	7,991	8,155	8,215	7,831	8,411	8,724	8,594
Participations in tenant-owners associations, etc.	432	375	422	445	558	603	438
Current receivables	3,475	3,569	3,726	3,828	3,847	3,796	4,007
Cash and cash equivalents	3,022	2,969	2,148	3,037	2,314	2,572	2,684
Total current assets	16,179	16,337	15,898	16,387	16,921	17,338	17,221
Total assets	16,584	16,673	16,196	16,665	17,115	17,538	17,414
EQUITY AND LIABILITIES
Equity	8,023	7,808	7,439	7,817	7,704	7,430	7,561
Non-current interest-bearing liabilities	308	281	366	354	362	293	267
Other non-current liabilities	373	373	373	372	679	751	749
Non-current provisions	3,100	3,012	3,231	3,290	3,398	3,280	3,151
Total non-current liabilities	3,781	3,666	3,970	4,016	4,439	4,324	4,167
Current interest-bearing liabilities	376	737	505	579	632	806	899
Other current liabilities	4,255	4,313	4,141	4,120	4,198	4,837	4,652
Current provisions	149	149	141	133	142	141	135
Total current liabilities	4,780	5,199	4,787	4,832	4,972	5,784	5,686
Total equity and liabilities	16,584	16,673	16,196	16,665	17,115	17,538	17,414
CASH FLOW STATEMENT	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
From operating activities	487	792	92	1,288	−165	404	188
From investing activities	−1	−1	1	−78	–	–	−1
From financing activities	−434	32	−986	−484	−93	−516	105
Total cash flow for the period	52	823	−893	726	−258	−112	292
Cash and cash equivalents at end of the period	3,022	2,969	2,148	3,037	2,314	2,572	2,684
INTEREST-BEARING NET LIABILITIES/RECEIVABLES	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Interest-bearing net liabilities(+)/−receivables(−) at
beginning of period	−244	449	−300	409	247	198	420
Change in interest-bearing net liabilities/receivables	−343	−693	749	−709	162	49	−222
Interest-bearing net liabilities(+)/receivables(−) at
end of period	−587	−244	449	−300	409	247	198
DEVELOPMENT PROPERTIES	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of period	8,155	8,215	7,831	8,411	8,724	8,594	8,938
New purchases	407	341	487	249	103	397	273
Transferred to production	−581	−247	−213	−792	−346	−302	−448
Other	10	−154	110	−37	−70	35	−169
Carrying amount at end of period	7,991	8,155	8,215	7,831	8,411	8,724	8,594
KEY RATIOS	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, %	12.8	16.4	12.2	17.4	11.8	9.7	12.7
Debt/equity ratio, multiple	–	–	0.1	–	0.1	–	–
Equity/assets ratio, %	48	47	46	47	45	42	43
Earnings per share, SEK	4.80	7.20	4.40	9.20	4.30	3.80	5.20
Number of available building rights	36,200	37,300	37,300	37,800	37,900	38,600	35,900
Number of residential units sold	808	1,210	1,261	1,623	956	642	805
Number of housing starts	817	800	927	976	855	731	637
Number of residential units in current production	7,722	7,353	7,485	7,976	7,829	7,249	7,583

Business Segment Quarterly Overview

ACCORDING TO SEGMENT REPORTING, SEK M		2021 2020
JM RESIDENTIAL STOCKHOLM	Q 3	Q2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,179	1,312	1,248	2,023	1,310	1,403	1,622
Operating profit	181	196	182	299	185	192	250
Operating margin, %	15.4	14.9	14.6	14.8	14.1	13.7	15.4
Average operating capital	4,963	5,157	5,283	5,372	5,552	5,682	5,740
Return on operating capital, %*)	17.3	16.7	16.2	17.2	16.0	16.1	16.3
Operating cash flow	394	417	16	383	143	207	331
Carrying amount, development properties	4,146	4,361	4,486	4,246	4,587	4,816	4,812
Number of available building rights	11,000	11,500	11,900	12,500	12,600	12,800	12,900
Number of residential units sold	261	332	357	474	299	220	347
Number of housing starts	351	239	298	282	252	258	240
Number of residential units in current production	2,703	2,526	2,773	2,878	3,095	2,843	3,035
JM RESIDENTIAL SWEDEN	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	951	1,154	1,042	1,137	913	1,093	1,050
Operating profit	145	177	160	181	141	169	166
Operating margin, %	15.2	15.3	15.4	15.9	15.4	15.5	15.8
Average operating capital	1,332	1,339	1,345	1,307	1,295	1,274	1,226
Return on operating capital, %*)	49.8	49.2	48.4	50.3	51.4	53.5	57.5
Operating cash flow	−60	326	154	270	60	74	108
Carrying amount, development properties	1,526	1,439	1,441	1,451	1,530	1,532	1,461
Number of available building rights	10,300	10,400	10,300	9,900	10,200	10,500	10,500
Number of residential units sold 1)	280	263	358	380	250	278	300
Number of housing starts 2)	238	362	277	250	285	276	261
Number of residential units in current production	2,226	2,178	2,063	2,172	2,138	1,961	1,930
1) Of which residential units to investors	–	–	–	–	–	69	–
2) Of which residential units to investors	–	–	–	–	–	69	–
JM INTERNATIONAL	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,185	1,084	856	1,102	867	896	882
Operating profit 1)	111	98	67	136	70	19	51
Operating margin, %	9.4	9.0	7.8	12.3	8.1	2.1	5.8
Average operating capital	3,309	3,336	3,335	3,400	3,440	3,395	3,368
Return on operating capital, %*)	12.5	11.1	8.8	8.1	7.4	7.7	9.1
Operating cash flow	338	−111	156	106	−27	285	−38
Carrying amount, development properties	2,293	2,329	2,262	2,108	2,265	2,347	2,292
Carrying amount, project properties	39	111	90	33	25	25	4
Number of available building rights	13,300	14,000	13,900	14,200	13,900	14,200	11,600
Number of residential units sold 2)	267	295	546	351	407	144	158
Number of housing starts 3)	228	199	352	444	318	197	136
Number of residential units in current production	2,458	2,314	2,314	2,463	2,133	1,982	2,018
1) Of which property sales	–	–	1	−2	1	–	–
2) Of which residential units to investors	78	94	265	–	101	–	–
3) Of which residential units to investors	–	94	265	–	101	–	–
JM PROPERTY DEVELOPMENT	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	65	65	52	57	42	35	35
Operating profit 1) 2)	12	153	4	178	3	−6	3
Average operating capital	1,407	1,460	1,513	1,513	1,507	1,523	1,545
Return on operating capital, %*)	24.7	23.1	11.8	11.8	0.2	11.8	12.4
Operating cash flow	−97	322	−88	660	−155	−120	−101
Carrying amount, development properties	10	10	10	10	10	10	10
Carrying amount, project properties	1,220	1,158	1,297	1,213	1,766	1,618	1,494
Number of available building rights 3)	1,600	1,400	1,200	1,200	1,200	1,100	900
Number of residential units sold 3)	–	320	–	418	–	–	–
Number of housing starts 3)	–	–	–	–	–	–	–
Number of residential units in current production 3)	335	335	335	463	463	463	600
1) Of which property sales	–	161	–	170	–	–	–
2) Of which income from joint venture	16	6	10	4	–	–	–
3) Refers to rental units and residential care units.
JM CONSTRUCTION	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	200	226	230	307	330	320	296
Operating profit 1)	3	3	3	8	3	−2	22
Operating margin, %	1.5	1.3	1.3	2.6	0.9	−0.6	7.4
Operating cash flow	4	14	10	9	−55	−24	5
1) Of which property sales	–	–	–	–	–	–	18
JM OTHER	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination)	−95	−122	−91	−96	−80	−85	−71
Operating profit (Group-wide expenses)	−7	−18	−10	−13	−3	−15	−9

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

Group – IFRS

CONDENSED CONSOLIDATED INCOME STATEMENT

	JANUARY–SEPTEMBER			JULY–SEPTEMBER OCT–SEPT		FULL-YEAR
ACCORDING TO IFRS, SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue	10,723	10,822	3,120	3,422	16,192	16,291
Production and operating costs	−8,541	−8,861	−2,504	−2,826	−13,017	−13,337
Gross profit	2,182	1,961	616	596	3,175	2,954
Selling and administrative expenses	−755	−721	−210	−203	−991	−957
Gains/losses on the sale of property, etc. 1)	33	19	16	1	35	21
Operating profit	1,460	1,259	422	394	2,219	2,018
Financial income and expenses	−63	−75	−20	−19	−89	−101
Profit before tax	1,397	1,184	402	375	2,130	1,917
Taxes	−268	−250	−98	−82	−396	−378
Profit for the period	1,129	934	304	293	1,734	1,539
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign operations	70	−124	10	−30	37	−157
Items that will not be reclassified as income
Restatement of defined-benefit pensions	119	20	−37	6	47	−52
Tax attributable to other comprehensive income	−24	−4	8	−1	−9	11
Comprehensive income for the period	1,294	826	285	268	1,809	1,341
Net profit for the period is attributable to shareholders of the Parent Company	1,129	934	304	293	1,734	1,539
Comprehensive income for the period is attributable to shareholders of the
Parent Company	1,294	826	285	268	1,809	1,341
Earnings per share 2), basic, is attributable to shareholders of the Parent
Company, SEK	16.30	13.40	4.40	4.20	25.00	22.10
Earnings per share 2), diluted, is attributable to shareholders of the Parent Company, SEK	16.20	13.40	4.40	4.20	24.90	22.00
Number of outstanding shares at end of period	68,910,847	69,583,262	68,910,847	69,583,262	68,910,847	69,583,262
Average number of shares, basic	69,357,938	69,583,262	69,090,051	69,583,262	69,414,732	69,583,262
Average number of shares, diluted	69,753,728	70,039,461	69,485,841	70,125,557	69,810,522	70,061,421
1) Of which income from joint venture	32	–	16	–	36	4
2) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO IFRS, SEK M	09/30/2021	09/30/2020	12/31/2020
ASSETS
Non-current assets 1)	638	365	435
Project properties	1,259	1,791	1,246
Development properties	7,991	8,411	7,831
Rights-of-use site leasehold rights	454	697	558
Participations in tenant-owners associations, etc.	432	558	445
Work in progress	4,183	3,537	3,577
Current receivables	5,631	5,531	5,959
Cash and cash equivalents	3,022	2,314	3,037
Total current assets	22,972	22,839	22,653
Total assets	23,610	23,204	23,088
EQUITY AND LIABILITIES 2) 3) 4) 5)
Equity	7,780	7,518	7,598
Non-current interest-bearing liabilities	906	1,181	1,180
Other non-current liabilities	373	679	372
Non-current provisions	3,061	3,363	3,255
Total non-current liabilities	4,340	5,223	4,807
Current interest-bearing liabilities	7,130	6,260	6,480
Other current liabilities	4,211	4,061	4,070
Current provisions	149	142	133
Total current liabilities	11,490	10,463	10,683
Total equity and liabilities	23,610	23,204	23,088
Pledged assets	441	425	395
Contingent liabilities	8,032	8,684	8,789
1) Of which right-of-use offices and cars	233	171	157
2) Of which project financing JM International	3,390	2,921	2,914
3) Of which project financing JM Residential Stockholm and JM Residential Sweden	3,260	2,554	3,064
4) Of which liabilities for property acquisition	581	767	459
5) Of which current and non-current interest-bearing leasing liabilities	690	870	717

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JANUARY–SEPTEMBER FULL-YEAR
ACCORDING TO IFRS, SEK M	2021	2020	2020
Opening balance at beginning of period	7,598	7,126	7,126
Total comprehensive income for the period	1,294	826	1,341
Dividend	−887	−435	−870
Conversion of convertible loan	25	–	–
Buy-back of shares	−250	–	–
Equity component of convertible debentures	–	1	1
Closing balance at the end of the period	7,780	7,518	7,598

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	JANUARY–SEPTEMBER	JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
ACCORDING TO IFRS, SEK M	2021	2020	2021	2020	2020/2021	2020
Cash flow from operating activities before change in working
capital and taxes 1) 2)	−475	−136	−240	23	−223	116
Tax paid	−438	−385	−110	−121	−537	−484
Investment in development properties	−1,130	−971	−339	−498	−1,688	−1,529
Payment on account for development properties	304	230	150	41	507	433
Investment in project properties	−362	−366	−74	−121	−687	−691
Sale of project properties	550	–	–	–	1,610	1,060
Change in current liabilities/receivables	377	236	−400	−22	526	385
Cash flow from operating activities 3)	−1,174	−1,392	−1,013	−698	−492	−710
Cash flow from investing activities	−1	−1	−1	–	−79	−79
Loans raised	360	243	1	104	570	453
Amortization of liabilities	−691	−390	−337	−224	−970	−669
Loans raised, project financing 3)	4,038	3,191	1,731	888	5,333	4,486
Amortization of debt, project financing 3)	−1,413	−1,294	−204	−328	−2,082	−1,963
Buy-back of shares	−250	–	−125	–	−250	–
Dividends	−887	−435	–	–	−1,322	−870
Cash flow from financing activities	1,157	1,315	1,066	440	1,279	1,437
Cash flow for the period	−18	−78	52	−258	708	648
Cash and cash equivalents at end of the period	3,022	2,314	3,022	2,314	3,022	3,037
1) Of which the purchase of participations in tenant-owners associations and freehold residential units	−601	−1,041	−177	−206	−785	−1,225
2) Of which the sale of participations in tenant-owners associations and freehold residential units	665	859	147	287	954	1,148

3) JM sometimes recognizes initial project financing for Swedish residential projects where the financing is taken over by the customer at a later point in time. The take-over occurs without any in- or outpayments, and when the debt is settled the cash flow statement is not affected, either as a negative item (amortization) in the financing activities or as a positive item in the operating activities.

ACCOUNTING PRINCIPLES

This interim report for the first nine months of 2021 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 89–93 of the 2020 Annual Report.

JM's appeal to the Administrative Court regarding Finansinspektionen's interpretation of IFRS for tenant-owner associations in production was decided with a ruling by the court in JM's favor on October 26, 2021. The Administrative Court reached a different assessment than Finansinspektionen and therefore rejects Finansinspektionen's previous decision.. For more information see JM's annual report for 2020, page 82.

NEW AND AMENDED STANDARDS AS OF 2021

The amended standards according to IFRS the Group applies as of January 1, 2021, are expected to have no or a small impact on JM's financial reporting.

SEGMENT REPORTING

JM's segment reporting primarily differs from IFRS in three respects: In its segment reporting, revenue for JM International is recognized using the percentage of completion method.

In addition, JM International's project financing, as well as part of the financing of JM Residential Stockholm and JM Residential Sweden, is recorded as a deduction item to "Revenue less progress billings" or "Progress billings in excess of recognized revenue" and raised/repaid project financing is reported in the cash flow from operating activities.

The reporting of leases in accordance with IFRS 16 is not applied in the segment reporting.

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.

Parent Company

CONDENSED INCOME STATEMENT, PARENT COMPANY

		JANUARY–SEPTEMBER FULL-YEAR
SEK M	2021	2020	2020
Net sales	7,208	7,590	10,790
Production and operating costs	−5,680	−6,024	−8,586
Gross profit	1,528	1,566	2,204
Selling and administrative expenses	−551	−507	−650
Gains/losses on the sale of property	–	–	–
Operating profit	977	1,059	1,554
Financial income and expenses	21	42	280
Profit before appropriations and tax	998	1,101	1,834
Appropriations	–	−4	−61
Profit before tax	998	1,097	1,773
Taxes	−197	−221	−319
Profit for the period	801	876	1,454

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK M	09/30/2021	09/30/2020	12/31/2020
Assets
Non-current assets	2,105	1,705	1,776
Current assets	13,069	13,719	13,834
Total assets	15,174	15,424	15,610
Equity and liabilities
Equity	4,212	4,358	4,501
Untaxed reserves	2,410	2,380	2,410
Provisions	1,336	1,616	1,422
Non-current liabilities	417	742	461
Current liabilities	6,799	6,328	6,816
Total equity and liabilities	15,174	15,424	15,610
Pledged assets	100	100	100
Contingent liabilities	9,358	9,447	9,459

Reconciliation between segment reporting and IFRS

CONSOLIDATED INCOME STATEMENT

		JANUARY–SEPTEMBER		JULY–SEPTEMBER		FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Revenue for the period (segment reporting)	10,541	10,858	3,485	3,382	15,071	15,388
Restatement JM International	−359	−36	−365	40	−460	−137
Reclassification property sale	541	–	–	–	1,581	1,040
Revenue for the period (IFRS)	10,723	10,822	3,120	3,422	16,192	16,291
Operating profit/loss for the period (segment reporting)	1,460	1,239	445	399	2,249	2,028
Restatement JM International	−18	–	−30	−8	−55	−37
Leases IFRS 16	18	20	7	3	25	27
Operating profit/loss for the period (IFRS)	1,460	1,259	422	394	2,219	2,018
Profit/loss for the period (segment reporting)	1,145	932	333	302	1,788	1,575
Restatement JM International	−15	3	−29	−9	−53	−35
Leases IFRS 16	−1	−1	–	–	−1	−1
Profit/loss for the period (IFRS)	1,129	934	304	293	1,734	1,539

CONSOLIDATED BAL ANCE SHEET

SEK M	09/30/2021	09/30/2020	12/31/2020
Balance sheet total (segment reporting)	16,584	17,115	16,665
Restatement JM International	−311	−254	−270
Reclassification project financing JM International, interest-bearing	3,254	2,596	2,609
Reclassification project financing JM International, non-interest-bearing 1)	136	325	305
Reclassification project financing JM Residential Stockholm and Sweden, interest-bearing	3,408	2,981	3,400
Transfer between Progress billing in excess of recognized revenue to Revenue less progress
billings	−148	−427	−336
Leases IFRS 16	687	868	715
Balance sheet total (IFRS)	23,610	23,204	23,088

1) Billing on account to customers.

CONSOLIDATED EQUITY

SEK M	09/30/2021	09/30/2020	12/31/2020
Equity (segment reporting)	8,023	7,704	7,817
Restatement JM International	−240	−184	−217
Leases IFRS 16	−3	−2	−2
Equity (IFRS)	7,780	7,518	7,598

GROUP KEY FIGURES

%	09/30/2021	09/30/2020	12/31/2020
Equity/assets ratio (segment reporting)	48	45	47
Equity/assets ratio (IFRS)	33	32	33

CONSOLIDATED CASH FLOW

	JANUARY–SEPTEMBER		JULY–SEPTEMBER		OCT–SEPT	FULL-YEAR
SEK M	2021	2020	2021	2020	2020/2021	2020
Cash flow from operating activities (segment reporting)	1,371	427	487	−165	2,659	1,715
Reclassification project financing JM International	−531	−114	−558	–	−561	−144
Reclassification project financing JM Residential Stockholm and
JM Residential Sweden, interest-bearing	−2,094	−1,783	−969	−560	−2,690	−2,379
Leases IFRS 16	80	78	27	27	100	98
Cash flow from operating activities according to IFRS	−1,174	−1,392	−1,013	−698	−492	−710

CONSOLIDATED INTEREST-BEARING NET LIABILITIES/RECEIVABLES

SEK M	09/30/2021	09/30/2020	12/31/2020
Interest-bearing net liabilities (+)/receivables (−) at end of period (segment
reporting)	−587	409	−300
Reclassification project financing JM International	3,254	2,596	2,609
Reclassification project financing JM Residential Stockholm and Sweden, interest-bearing	3,408	2,981	3,400
Leases IFRS 16	690	870	717
Interest-bearing net liabilities (+)/receivables (−) at end of period (IFRS)	6,765	6,856	6,426

Stockholm, October 28, 2021 JM AB (publ)

Johan Skoglund President and CEO

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

INTRODUCTION

We have reviewed the condensed interim financial information (interim report) of JM AB as of September 30, 2021 and the ninemonth period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

SCOPE OF REVIEW

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

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

CONCLUSION

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

Stockholm, October 28, 2021 PricewaterhouseCoopers AB

Ann-Christine Hägglund Fredrik Kroon AuthorizedPublic Authorized Public Accountant Accountant Auditor in charge

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 15 billion and the company has around 2,400 employees. JM AB is a public limited company listed on NASDAQ Stockholm, Large Cap segment.

FINANCIAL TARGETS, BENCHMARKS FOR CAPITAL STRUCTURE AND DIVIDEND POLICY

The operating margin should amount to on average 12 percent, including gains/losses from property sales.

Return on equity should be 25 percent on average over time. Long-term growth should amount to 4 percent a year on

average for the number of housing starts, where the baseline is an annual rate of 3,800 housing starts.

Benchmark for capital structure where the visible equity/assets ratio should amount to at least 35 percent over a business cycle.

Dividend policy where the average dividend should be 50 percent of the Group's profit after tax over a business cycle.

JM's financial targets, benchmarks for capital structure and dividend policy are based on segment reporting.

DISCLOSURES

This information is information that JM AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.00 CEST on October 28, 2021.

FOR MORE INFORMATION PLEASE CONTACT:

Carl Bandhold, CFO, Head of IR E-mail cfo@jm.se Tel. +46 8 782 87 00

FINANCIAL CALENDAR

February 2, 2022	Year-end Report
Week 10, 2022	Annual Report 2021 is published
March 31, 2022	Annual General Meeting
April 29, 2022	Interim Report January–March
July 12, 2022	Interim Report January–June
October 27, 2022	Interim Report January–September

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

Text: JM

Photo/Illustrations: Carbonwhite, Diakrit, Sandra Birgersdotter Ek, Magnus Liam, Erkka Malkavaara, Sightline

PRESS RELEASES, Q3 2021

September 21	JM AB's Nomination Committee for the 2022
	Annual General Meeting
July 13	Interim Report January–June 202
July 1	Management change in JM Norway

JM AB (publ)

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