JM — Interim / Quarterly Report 2022

Apr 29, 2022

Interim Report January–March 2022

Continued high demand and good profitability

JANUARY–MARCH 2022

Revenue increased to SEK 3,854m (3,337).

Operating profit increased to SEK 466m (406). The operating margin was 12.1 percent (12.2).

Gains from sale of properties and from joint venture of SEK 7m (11) are included in the operating profit.

Profit before tax increased to SEK 450m (390). Profit after tax increased to SEK 356m (309).

Return on equity for the past twelve months increased to 22.6 percent (20.3). Earnings per share for the first quarter increased to SEK 5.20 (4.40).

Consolidated cash flow including net investment in properties amounted to SEK 273m (92).

The number of residential units sold amounted to 995 (1,261), and housing starts to 808 (927).

ACCORDING TO SEGMENT REPORTING		JANUARY–MARCH APRIL–MARCH FULL YEAR
SEK M	2022	2021	2021/2022	2021
Revenue	3,854	3,337	15,125	14,608
Operating profit	466	406	2,276	2,216
Operating margin, %	12.1	12.2	15.0	15.2
Profit before tax	450	390	2,218	2,158
Cash flow from operating activities	273	92	2,469	2,287
Return on equity, %			22.6	21.9
Equity/assets ratio, %	51	46		50
Earnings per share, SEK	5.20	4.40	23.40	25.90
Number of residential units sold 1) 2)	995	1,261	3,982	4,248
Number of housing starts 3) 4)	808	927	3,853	3,972
Number of residential units in current production	8,276	7,485		8,094
Revenue according to IFR S	3,835	3,545	15,940	15,650
Operating profit according to IFR S	457	452	2,232	2,227
Earnings per share according to IFR S, SEK	5.00	5.00	22.20	26.00
1) Of which rental units in JM Property Development	–	–	320	320
2) Of which residential units in JM International to investors	128	265	446	583
3) Of which rental units in JM Property Development	–	–	341	341
4) Of which residential units in JM International to investors	128	265	368	505

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/en/about-us/investors

The financial statements are presented in Swedish krona (SEK), which is also the reporting currency for the Parent Company. All amounts are rounded to the nearest million unless otherwise specified. The figures in the report are based on the Group's consolidation system, which is in SEK thousand. Due to rounding of figures in tables, total amounts may not correspond to the sum of the initial rounded whole numbers. 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.

Continued high demand

We continued to have high demand in the first quarter at good price levels in all our markets. After having exceeded the goal for housing starts in 2021, the level decreased slightly in the first quarter due to a low level of housing starts in Stockholm. This relates primarily to the lack of necessary authority decisions, but we expect housing starts to be in line with our target level for the full year. Revenue and earnings continued to be hampered by the lower housing starts and price levels for projects started in Stockholm in recent years since the lead time between the housing market's development and the impact in the income statement in JM's business is several years. At the same time, the business and earnings continued to develop very favorably in Norway, Finland and the rest of Sweden during the quarter.

The supply of newly produced residential units continued to be low on all our markets at the same time as the transaction volume is 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. At the same time, it is clear that the costs of building are increasing more than what we have seen historically in Sweden as well as in Norway and Finland. We are seeing a higher cost profile in the new projects we are starting, but only a limited impact in ongoing projects.

Overall, we see good conditions for housing starts and a continued stable cash flow going forward. An increased level of housing starts continues to be a priority to meet the high demand for JM's residential units.

The first quarter of 2022 was influenced by the Russian invasion of Ukraine and subsequent human tragedies. The war has so far had a limited impact on JM's operations.

Good sales in Stockholm

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

Sales in Stockholm have continued to be good. In the first quarter, 264 residential units were sold compared to 356 in the fourth quarter. The housing business in Stockholm continued to have good profitability but a low level of housing starts during the first quarter. However, revenue and the operating profit continue to be negatively impacted by the lower housing starts and price levels for projects during the years 2018–2020. The situation is expected some improvment in 2022, assuming a continued positive market at the same time as housing starts gradually return to a higher level.

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

Good sales in Norway, Finland and the rest of Sweden

The housing business in the rest of Sweden showed good sales and profitability and a high level of housing starts during the first quarter.

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

The international business continued to develop very well during the quarter in terms of both revenue and profit with an increased level of housing starts.

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 the continued buy-back of our own shares. Despite the current global uncertainty, the fundamental and long-term conditions are favorable for our business, and I expect continued good development in 2022.

Johan Skoglund, President and CEO

Market, sales and housing starts

JANUARY–M ARCH 2022

The housing market in Stockholm continued to be at a good level during the first quarter.

Profitability in Stockholm continued to be good during the first quarter with a good level of residential units sold. Housing starts during the quarter were at a lower level, but an increase in the number of housing starts is planned for the rest of the year.

The housing business in the rest of Sweden continued to show good profitability with high sales and high level of housing starts in a stable market.

In Norway and Finland, the activity on the housing market continued to develop favorably, with increasing or stable prices during the quarter.

Population growth in our main markets, coupled with low interest rates and high employment, supports demand for housing.

The number of residential units sold in the form of signed contracts was 995 (1,261)1) 2). The percentage of sold and reserved residential units in relation to current production amounted to 77 percent (77), with an interval of 60–65 percent considered normal. JM Residential Stockholm sold 264 residential units (357), JM Residential Sweden sold 375 (358), JM International sold 356 (546), and JM Property Development sold 0 (0).

The number of housing starts totaled 808 (927)3) 4). JM Residential Stockholm started production on 73 residential units (298), JM Residential Sweden on 357 (277), JM International on 378 (352) 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 increased to 8,276 (7,485), of which 484 rental units (335) in JM Property Development.

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

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

4) Of which 128 residential units (265) in JM International for investors

Revenue, operating profit and operating margin

JANUARY–M ARCH 2022

Consolidated revenue according to segment reporting for the first quarter increased to SEK 3,854m (3,337). Revenue restated according to IFRS increased to SEK 3,835m (3,545). The increase in revenue is primarily attributable to a higher level of current production in the JM International business segment.

Operating profit according to segment reporting increased to SEK 466m (406), and the operating margin was 12.1 percent (12.2). Operating profit restated according to IFRS amounted to SEK 457m (452). The restatement is related to JM International, with a negative effect on earnings of SEK −15m (42), and leases according to IFRS 16, with a positive effect on earnings of SEK 5m (4).

During the first quarter, properties were sold with gains of SEK 0m (1), and income from joint venture amounted to SEK 7m (10), primarily attributable to value adjustments regarding rental properties.

Rental income from JM's project properties was SEK 5m (10). Net rental income was SEK 1m (4).

²⁾ Of which 128 residential units (265) in JM International for investors

OPERATING PROFIT BY BUSINESS SEGMENT, SEK M		JANUARY–MARCH	APRIL–MARCH FULL YEAR
	2022	2021	2021/2022	2021
JM Residential Stockholm	190	182	771	763
JM Residential Sweden	174	160	676	662
JM International	105	67	453	415
JM Property Development	4	4	407	407
JM Construction	4	3	20	20
Group-wide expenses	−11	−10	−52	−50
Total	466	406	2,276	2,216
Of which property sales	–	1	395	396
Of which income from joint venture	7	10	37	40

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
OPERATING MARGIN BY BUSINESS SEGMENT, %	2022	2021	2021/2022	2021
JM Residential Stockholm	14.8	14.6	15.3	15.3
JM Residential Sweden	15.5	15.4	15.4	15.3
JM International	8.6	7.8	9.2	9.2
JM Construction	1.4	1.3	2.1	2.1

RESIDENTIAL UNITS IN CURRENT PRODUCTION	03/31/2022	03/31/2021	12/31/2021
Number of residential units in current production 1) 2)	8,276	7,485	8,094
Percentage of sold residential units in current production, % 3)	66	62	64
Percentage reserved residential units in current production, %	11	15	13
Percentage sold and reserved residential units in current production, %	77	77	76
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	484	335	484
Including residential units in projects where costs incurred are only reported as project properties under construction	341	192	341
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	03/31/2022	03/31/2021	12/31/2021
Completed production, number of unsold units 1)	86	119	91
The number of unsold residential units in the balance sheet recognized as "Participations in
tenant-owners associations, etc."	59	84	67

1) After final occupancy according to plan.

Residential building rights

JANUARY–M ARCH 2022

The number of available building rights at the end of the first quarter amounted to 36,300 (37,300), of which 19,800 (19,700) are recognized in the balance sheet. Capital tied up in building rights (development properties in the balance sheet) for residential units decreased to SEK 7,982 (8,199).

JM acquired development properties for residential units during the quarter for SEK 141m (487), of which SEK 82m relates to JM Residential Stockholm, SEK 31m to JM Residential Sweden and SEK 29m to JM International.

Financial items

JANUARY–M ARCH 2022

Net financial items remained the same compared to last year.

Total interest-bearing liabilities according to segment reporting were SEK 2,654m (2,597), of which the provision for pension liabilities comprised SEK 1,802m (1,726). At the end of the first quarter, the average interest rate for the total interestbearing loan stock including pension liabilities was 2.0 percent (1.5). The average term for fixed-rate loans excluding the pension liability was 0.3 years(0.4).

Consolidated available liquidity increased to SEK 6,915m (4,948). Aside from cash and cash equivalents of SEK 4,115m (2,148), 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 2.7 years (2.8).

Interest-bearing net receivables including the pension liability according to segment reporting totaled SEK 1,466m (− 449) at the end of the period. Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 440m (526). Of these liabilities, SEK 66m (154) were current.

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

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
SEK M	2022	2021	2021/2022	2021
Financial income	3	1	6	4
Financial expenses	−20	−17	−65	−62
Financial income and expenses	−16	−16	−58	−58

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
ACCORDING TO SEGMENT REPORTING, SEK M	2022	2021	2021/2022	2021
Interest-bearing net liabilities (+)/receivables (−)
at beginning of period	−1,363	−300	449	−300
Change in interest-bearing liabilities/-receivables	−102	749	−1,914	−1,063
Interest-bearing net liabilities (+)/receivables (−)
at end of period	−1,466	449	−1,466	−1,363

6 · JM IN T ERI M RE P O RT J ANUARY–M ARC H 2022

Cash flow

JANUARY–M ARCH 2022

Cash flow from operating activities according to segment reporting was SEK 273m (92). Net investments in development properties resulted in a positive cash flow of SEK 66m (−228). The decreased holdings of unsold residential units in the balance sheet resulted in a cash flow of SEK 69m (−44). Consolidated cash flow attributable to project properties (sales minus investment) during the first quarter was SEK −83m (−139).

Risks and uncertainty factors

JM's risks and risk management are presented in the 2021 Annual Report on pages 35–40 and 87. Aside from the uncertainty related to COVID-19, uncertainty has arisen regarding the Swedish cement supply and the effects of the ongoing war in Ukraine.

COVID-19 and its effects have created uncertainty and risks for some time, where the risks are judged to have decreased in 2021 and further in 2022 and not resulted in any significant negative impact on JM's operations.

Cement supply and local cement production through the operation of a limestone quarry has been 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 made it possible to extend the licenses in question.

Ukraine

The ongoing war in Ukraine has created uncertainty, but it is too early to assess the extent to which the situation could impact JM's operations.

JM has no framework agreement suppliers in Russia, Belarus or Ukraine. Even though JM has long-term agreements and is prioritized by our agreed suppliers, they in turn may be dependent on input goods whose access is impacted by the war in Ukraine. There are currently no indications of a significant impact in JM's current projects.

Exposure to commodity prices and increased cost pressure

The price of steel and wood increased in 2021. Long-term agreements with JM's suppliers mean this is having a limited impact on the income statement. Concrete prices were stable in 2021 for JM, where price increases have been announced for 2022. Cost increases on raw materials are offset in part through regular streamlining.

For JM's Swedish operations, pure steel and wood constitute around 4 percent and 2 percent, respectively, of total costs. The material cost for pure concrete is estimated to constitute around 2 percent of the total cost, which includes cement, ballast and additives.

In general, we see greater cost pressure in the building sector in Sweden, as well as in Norway and Finland.

Buy-back, elimination and holdings of own shares

Following the Annual General Meeting on March 24, 2021, 1,477,650 shares were bought back for SEK 499m. Holdings of treasury shares subsequently total 1,477,650. The number of outstanding shares, excluding holdings of treasury shares, at March 31, 2022, totals 68,277,119.

The Annual General Meeting on March 31, 2022, resolved that the holding of treasury shares, 1,477,650 shares, be eliminated through a decrease in the share capital for allocation to unrestricted equity.

The Annual General Meeting also resolved to authorize the Board of Directors, during the period up to the next Annual General Meeting and on one or more occasions, to decide to buy back shares so that the Company's holdings do not at any point in time exceed 10 percent of all the shares in the Company. Acquisition should take place on Nasdaq Stockholm within the applicable share-price interval at the time of purchase.

Dividend for 2021

The Annual General Meeting on March 31, 2022, resolved on a dividend for 2021 of SEK 13.50 (12.75) per share, for a total of SEK 922m (887). The dividend was sent on Thursday, April 7, 2022.

Personnel

The number of employees in the first quarter decreased to 2,453 (2,472). The number of wage-earners decreased to 870 (918), and the number of salaried employees was 1,583 (1,554). 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.

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 continued to increase during the first quarter. The total supply of residential units and the supply of newly produced residential units continued to be at a low level during the quarter.

Competition for well-situated land for housing is still considered to be at a high level. Prices continued to be at a level that requires selective acquisition.

The housing market in Stockholm was stable with continued high demand during the first quarter. Customers are showing considerable interest in JM's projects with good sales in the quarter, which has continued to be limited, however, by available supply.

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

Housing starts in Stockholm during the first quarter were supported by a high level of reservations, and profitability continues to be good in the current production volume.

The level of land transfers to projects was also low during the quarter.

The lack of necessary authority decisions had a negative impact on the business segment's housing starts. This currently concerns four projects with a total of around 350 residential units. Housing starts in forthcoming phases for one of these projects have also been indirectly delayed. A significant increase in the number of housing starts is planned for the rest of the year.

Revenue and the operating profit continue to be negatively impacted by the lower housing starts and price levels for projects during the years 2018–2020.

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

Production started in the first quarter on 73 residential units in apartment buildings in Solna and Stockholm.

Around 50 building rights were acquired in Danderyd in the first quarter.

			JANUARY–MARCH APRIL–MARCH	FULL YEAR
SEK M	2022	2021	2021/2022	2021
Revenue	1,285	1,248	5,026	4,990
Operating profit	190	182	771	763
Operating margin, %	14.8	14.6	15.3	15.3
Average operating capital			4,644	4,771
Return on operating capital, %			16.6	16.0
Operating cash flow	244	16	1,442	1,214
Carrying amount, development properties	3,960	4,486		4,051
Number of available building rights	12,600	11,900		11,700
Number of residential units sold	264	357	1,213	1,306
Number of housing starts	73	298	928	1,153
Number of residential units in current production	2,870	2,773		2,855
Number of employees	806	816		806

8 · JM IN T ERI M RE P O RT J ANUARY–M ARC H 2022

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.

The average prices on the existing home market continued during the first quarter to remain the same or increase slightly in the segment's submarkets, with the exception of Linköping, where prices fell.

The total supply of newly produced residential units continued to be at a low level during the first quarter. The supply of newly produced homes was at a slightly lower level in Gothenburg, at a significantly lower level in Malmö, and remained the same in Uppsala compared to the corresponding period last year.

Competition for land for residential purposes continued to be high in the first quarter for most of the business segment's submarkets.

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

The business segment reports a continued good profit level and margin.

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

Production started in the first quarter on 357 residential units in apartment buildings in Lomma, Gothenburg , Norrköping and Uppsala.

JM acquired 120 building rights in Gothenburg and Linköping in the first quarter.

SEK M		JANUARY–MARCH APRIL–MARCH		FULL YEAR
	2022	2021	2021/2022	2021
Revenue	1,127	1,042	4,402	4,317
Operating profit	174	160	676	662
Operating margin, %	15.5	15.4	15.4	15.3
Average operating capital			1,366	1,354
Return on operating capital, %			49.5	48.9
Operating cash flow	304	154	591	442
Carrying amount, development properties	1,553	1,441		1,669
Number of available building rights	10,000	10,300		9,900
Number of residential units sold	375	358	1,138	1,121
Number of housing starts	357	277	1,257	1,177
Number of residential units in current production	2,153	2,063		2,154
Number of employees	550	582		564

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 105m (67) and 8.6 percent (7.8), respectively. The higher profit is due primarily to a strong market, good sales and an increase in the level of current production.

Cash flow during the first quarter is in balance taking into consideration the payments for previously acquired development properties.

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
JM INTERNATIONAL, SEK M	2022	2021	2021/2022	2021
Revenue	1,231	856	4,906	4,531
Operating profit 1)	105	67	453	415
Operating margin, %	8.6	7.8	9.2	9.2
Average operating capital			3,506	3,405
Return on operating capital, %			12.9	12.2
Operating cash flow	−37	156	129	323
Carrying amount, development properties	2,459	2,262		2,462
Carrying amount, project properties	18	90		17
Number of available building rights	12,400	13,900		12,900
Number of residential units sold 2)	356	546	1,311	1,501
Number of housing starts 3)	378	352	1,327	1,301
Number of residential units in current production	2,769	2,314		2,601
Number of employees	555	525		551
1) Of which property sales	–	1	4	4
2) Of which residential units to investors	128	265	446	583
3) Of which residential units to investors	128	265	368	505

JM Norway

Prices on the existing home market increased during the first quarter by 7.6 percent. The supply on the existing home market during the quarter was lower than usual.

There continues to be cost pressure in the Norwegian construction sector, with higher prices on steel, concrete, wood, transport and energy.

Good sales in the first quarter strengthened the operating profit and the operating margin.

Cash flow during the first quarter is in balance taking into consideration the payments for previously acquired development properties.

During the first quarter, JM Norway sold 194 residential units (176) and started production on 250 residential units (87) in Rælingen and Nordre Follo outside of Oslo and Drammen and Trondheim. The number of residential units in current production amounted to 1,436 (1,120).

No building rights were acquired during the first quarter.

JM Finland

The activity on the housing market in the Helsinki region continues to be at a high but slightly declining level. Despite the ongoing war in Ukriane, customers are showing good interest in JM's projects. The tendency to sign a contract early in the process was at a normal level in the first quarter. The prices on the existing home market in the Helsinki region were stable during the quarter.

The profit and margin levels in the business unit increased slightly compared to the corresponding period last year.

Cash flow during the first quarter is in balance.

During the first quarter, 162 residential units (370) were sold, and production started on 128 residential units (265) in apartment buildings in Helsinki. Of the sold residential units and housing starts, 128 residential units (265) are to investors. The number of residential units in current production amounted to 1,333 (1,194).

During the first quarter, 36 building rights were acquired.

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
JM NORWAY, SEK M	2022	2021	2021/2022	2021
Revenue	856	636	3,250	3,030
Operating profit 1)	73	52	321	300
Operating margin, %	8.6	8.2	9.9	9.9
Average operating capital			2,184	2,178
Return on operating capital, %			14.7	13.8
Operating cash flow	−61	89	521	671
Carrying amount, development properties	1,443	1,485		1,468
Number of available building rights	7,400	8,400		7,800
Number of residential units sold	194	176	692	674
Number of housing starts	250	87	799	636
Number of residential units in current production	1,436	1,120		1,280
Number of employees	373	390		377
1) Of which property sales	–	–	4	4

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
JM FINLAND, SEK M	2022	2021	2021/2022	2021
Revenue	375	220	1,656	1,501
Operating profit 1)	33	15	139	122
Operating margin, %	8.7	6.9	8.4	8.1
Average operating capital			1,249	1,151
Return on operating capital, %			11.1	10.6
Operating cash flow	24	67	−401	−358
Carrying amount, development properties	951	697		930
Number of available building rights	5,000	5,500		5,100
Number of residential units sold 2)	162	370	619	827
Number of housing starts 3)	128	265	528	665
Number of residential units in current production	1,333	1,194		1,321
Number of employees	182	135		174
1) Of which property sales	–	1	–	1
2) Of which residential units to investors	128	265	446	583
3) Of which residential units to investors	128	265	368	505

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 73m (52), of which rental income was SEK 5m (10). Contracting revenue and sales of services amounted to SEK 68m (42). Operating profit amounted to SEK 4m (4), of which income from joint venture was SEK 7m (10), primarily attributable to value adjustments regarding rental properties.

Operating profit is burdened by costs for the continued establishment and development of JM@home.

Net rental income for project properties amounted to SEK 0m (4).

Cash flow during the first quarter is negative due to ongoing investments in project properties.

Three rental projects are in production, of which two in JM's own balance sheet: Kvarter 8 in Järfälla with 218 rental units and Dyvers Kulle in Sundbyberg with 123 rental units. Occupancy is ongoing in the Valla Park project in Sundbyberg, which has 143 rental units, and completion is planned for Q4 2022, at which point the rental property will be transferred to the external orderer.

Production is also ongoing in the office project K1 Karlbergs Strand in Karlberg, Solna, in JM's own balance sheet, which covers approximately 20,000 square meter. Half of the property is planned to serve as JM's new head office, and completion is planned for year-end 2024.

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
SEK M	2022	2021	2021/2022	2021
Revenue	73	52	283	262
Operating profit 1) 2)	4	4	407	407
Average operating capital			1,187	1,242
Return on operating capital, %			34.3	32.7
Operating cash flow	−81	−88	808	801
Carrying amount, development properties	10	10		10
Carrying amount, project properties	878	1,297		795
Number of available building rights 3)	1,300	1,200		1,100
Number of residential units sold 3)	–	–	320	320
Number of housing starts 3)	–	–	341	341
Number of residential units in current production 3)	484	335		484
Number of employees	78	79		81
1) Of which property sales	–	–	391	391
2) Of which income from joint venture	7	10	37	40

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 compared to previous years due to lower external activity for JM in its civil engineering operations, where profitability is prioritized over volume. The business segment focuses on projects that have synergies with residential project development.

Cash flow in the first quarter is burdened by an increase in working capital.

In the first quarter, the business segment received a number of external assignments within its civil engineering operations, of which the largest are quay work for Kvarnholmen Utveckling AB in Nacka Municipality, development work in Tyresö for

Tyresö Municipality and engineering work for a rectifier station in Stadshagen for the Traffic Commission.

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 a pipeline network in Huddinge (Stockholm Vatten). The business segment also has several ongoing intra-Group projects, of which the largest is the work on JM's new head office in Karlbergs Strand, Solna.

	JANUARY–MARCH APRIL–MARCH			FULL YEAR
SEK M	2022	2021	2021/2022	2021
Revenue 1)	262	230	983	951
Operating profit	4	3	20	20
Operating margin, %	1.4	1.3	2.1	2.1
Operating cash flow	−16	10	10	36
Carrying amount, development properties	13	16		13
Number of employees	260	267		251
1) Of which intra-Group	124	91	475	442

Group – segment reporting

CONDENSED CONSOLIDATED INCOME STATEMENT

ACCORDING TO SEGMENT REPORTING, SEK M		JANUARY–MARCH		FULL YEAR
	2022	2021	2021/2022	2021
Revenue	3,854	3,337	15,125	14,608
Production and operating costs	−3,140	−2,703	−12,251	−11,814
Gross profit	714	634	2,874	2,795
Selling and administrative expenses	−255	−239	−1,031	−1,015
Gains/losses on the sale of property, etc. 1)	7	11	432	436
Operating profit	466	406	2,276	2,216
Financial income and expenses	−16	−16	−58	−58
Profit before tax	450	390	2,218	2,158
Taxes	−94	−81	−374	−360
Profit for the period	356	309	1,844	1,798
Other comprehensive income	63	200	81	218
Comprehensive income for the period	418	509	1,926	2,016
Earnings per share 2), diluted, SEK	5.20	4.40	23.40	25.90
Average number of shares, diluted	68,794,513	70,125,557	69,278,877	69,560,505
1) Of which income from joint venture	7	10	37	40
2) Net profit/loss for the period.

CONDENSED CONSOLIDATED BAL ANCE SHEET

ACCORDING TO SEGMENT REPORTING, SEK M	3/31/2022	3/31/2021	12/31/2021
ASSETS
Non-current assets	351	298	330
Project properties	896	1,387	813
Development properties	7,995	8,215	8,205
Participations in tenant-owners associations, etc.	330	422	377
Current receivables 1)	3,770	3,726	3,528
Cash and cash equivalents	4,115	2,148	3,981
Total current assets	17,105	15,898	16,903
Total assets	17,457	16,196	17,233
EQUITY AND LIABILITIES 2)
Equity	8,904	7,439	8,608
Non-current interest-bearing liabilities	193	366	190
Other non-current liabilities	374	373	373
Non-current provisions	3,066	3,231	3,078
Total non-current liabilities	3,633	3,970	3,641
Current interest-bearing liabilities	658	505	667
Other current liabilities	4,118	4,141	4,172
Current provisions	144	141	145
Total current liabilities	4,920	4,787	4,984
Total equity and liabilities	17,457	16,196	17,233
1) Of which receivables from property sales	15	1	14
2) Of which liabilities for property acquisition	464	550	675

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

ACCORDING TO SEGMENT REPORTING, SEK M		JANUARY–MARCH
	2022	2021	2021
Opening balance at beginning of the period	8,608	7,817	7,817
Total comprehensive income for the period	418	509	2,016
Dividend	–	−887	−887
Conversion of convertible loan	1		38
Repurchase of shares	−124		−375
Closing balance at end of the period	8,904	7,439	8,608

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

ACCORDING TO SEGMENT REPORTING, SEK M		JANUARY–MARCH		FULL YEAR
	2022	2021	2021/2022	2021
Cash flow from operating activities before change in working
capital and taxes 1) 2)	485	386	1,746	1,648
Tax paid	−151	−193	−507	−549
Investment in development properties	−365	−414	−1,490	−1,539
Payment on account for development properties	431	186	1,595	1,349
Investment in project properties	−83	−139	−391	−447
Sale of project properties	–	–	1,340	1,340
Change in current liabilities/receivables	−45	266	175	485
Cash flow from operating activities	273	92	2,469	2,287
Cash flow from investing activities	−6	1	−23	−17
Loans raised	271	16	918	663
Amortization of liabilities	−292	−115	−916	−738
Buy-back of shares	−124	–	−499	−375
Dividends	–	−887	–	−887
Cash flow from financing activities	−146	−986	−498	−1,338
Cash flow for the period	122	−893	1,948	933
Cash and cash equivalents at end of the period	4,115	2,148	4,115	3,981
1) Of which investment in participations in tenant-owners associations and freehold
residential units	−21	−277	−474	−730
2) Of which the sale of participations in tenant-owners associations and freehold
residential units	90	233	694	837

GROUP KEY FIGURES

ACCORDING TO SEGMENT REPORTING, %		JANUARY–MARCH	APRIL–MARCH	FULL YEAR
	2022	2021	2021/2022	2021
Operating margin	12.1	12.2	15.0	15.2
Return on equity			22.6	21.9
Return on capital employed			21.1	20.4
Debt/equity ratio, multiple	–	0.1		–
Equity/assets ratio	51	46		50

According to segment reporting

REVENUE BY COUNTRY

		JANUARY–MARCH		FULL YEAR
SEK M	2022	2021	2021/2022	2021
Sweden	2,623	2,481	10,219	10,077
Norway	856	636	3,250	3,030
Finland	375	220	1,656	1,501
Belgium	–	–	–	–
Total	3,854	3,337	15,125	14,608

REVENUE BY BUSINESS SEGMENT

		JANUARY–MARCH	APRIL–MARCH	FULL YEAR
SEK M	2022	2021	2021/2022	2021
JM Residential Stockholm	1,285	1,248	5,026	4,990
JM Residential Sweden	1,127	1,042	4,402	4,317
JM International	1,231	856	4,906	4,531
JM Property Development	73	52	283	262
JM Construction	262	230	983	951
Elimination	−124	−92	−475	−442
Total	3,854	3,337	15,125	14,608

OPERATING PROFIT BY BUSINESS SEGMENT

		JANUARY–MARCH	APRIL–MARCH	FULL YEAR
SEK M	2022	2021	2021/2022	2021
JM Residential Stockholm	190	182	771	763
JM Residential Sweden	174	160	676	662
JM International	105	67	453	415
JM Property Development	4	4	407	407
JM Construction	4	3	20	20
Group-wide expenses	−11	−10	−52	−50
Total	466	406	2,276	2,216

OPER ATING MARGIN BY BUSINESS SEGMENT

	JANUARY–MARCH		APRIL–MARCH	FULL YEAR
%	2022	2021	2021/2022	2021
JM Residential Stockholm	14.8	14.6	15.3	15.3
JM Residential Sweden	15.5	15.4	15.4	15.3
JM International	8.6	7.8	9.2	9.2
JM Construction	1.4	1.3	2.1	2.1

AVER AGE OPER ATING CAPITAL BY BUSINESS SEGMENT

APRIL–MARCH		FULL YEAR
SEK M	2021/2022	2021
JM Residential Stockholm	4,644	4,771
JM Residential Sweden	1,366	1,354
JM International	3,506	3,405
JM Property Development	1,187	1,242

RETURN ON OPER ATING CAPITAL BY BUSINESS SEGMENT

	APRIL–MARCH	FULL YEAR
%	2021/2022	2021
JM Residential Stockholm	16.6	16.0
JM Residential Sweden	49.5	48.9
JM International	12.9	12.2
JM Property Development	34.3	32.7

According to segment reporting

PROFIT/LOSS COMPONENTS, HOUSING BUSINESS, PERCENTAGE OF COMPLETION METHOD (GROSS PROFIT)
	JANUARY–MARCH		OCT.–DECEMBER JULY–SEPTEMBER		APRIL–JUNE JANUARY–MARCH
SEK M	2022	2021	2021	2021	2021
Cost-based effect	248	294	254	247	265
Revaluation effect	384	391	336	390	178
Sales effect	52	70	29	80	163
Total	684	755	619	717	606

Starting in Q1 2021, 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

	JANUARY–MARCH		OCT.–DECEMBER JULY–SEPTEMBER	APRIL–JUNE JANUARY–MARCH
SEK M	2022	2021	2021	2021	2021
JM Residential Stockholm	113	83	95	93	−15
JM Residential Sweden	169	186	134	191	135
JM International	102	122	107	106	58
Total	384	391	336	390	178

OPERATING CASH FLOW BY BUSINESS SEGMENT

	JANUARY–MARCH		APRIL–MARCH	FULL YEAR
SEK M	2022	2021	2021/2022	2021
JM Residential Stockholm	244	16	1,442	1,214
JM Residential Sweden	304	154	591	442
JM International	−37	156	129	323
JM Property Development	−81	−88	808	801
JM Construction	−16	10	10	36

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT

CARRYING AMOUNT, SEK M	3/31/2022	3/31/2021	12/31/2021
JM Residential Stockholm	3,960	4,486	4,051
JM Residential Sweden	1,553	1,441	1,669
JM International	2,459	2,262	2,462
JM Property Development	10	10	10
JM Construction	13	16	13
Total	7,995	8,215	8,205

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT

NUMBER	3/31/2022	3/31/2021	12/31/2021
JM Residential Stockholm	12,600	11,900	11,700
JM Residential Sweden	10,000	10,300	9,900
JM International	12,400	13,900	12,900
JM Property Development 1)	1,300	1,200	1,100
Total	36,300	37,300	35,600
Including those carried in the balance sheet (development properties)
JM Residential Stockholm	6,700	7,100	6,500
JM Residential Sweden	6,200	5,800	6,200
JM International	6,700	6,500	7,100
JM Property Development 1)	200	300	200
Total	19,800	19,700	20,000

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENT

		JANUARY–MARCH	APRIL–MARCH	FULL YEAR
NUMBER	2022	2021	2021/2022	2021
JM Residential Stockholm	264	357	1,213	1,306
JM Residential Sweden	375	358	1,138	1,121
JM International	356	546	1,311	1,501
JM Property Development 1)	–	–	320	320
Total	995	1,261	3,982	4,248
1) Refers to rental units and residential care units.

According to segment reporting

HOUSING STARTS BY BUSINESS SEGMENT

	JANUARY–MARCH		APRIL–MARCH	FULL YEAR
NUMBER	2022	2021	2021/2022	2021
JM Residential Stockholm	73	298	928	1,153
JM Residential Sweden	357	277	1,257	1,177
JM International	378	352	1,327	1,301
JM Property Development 1)	–	–	341	341
Total	808	927	3,853	3,972

RESIDENTIAL UNITS IN CURRENT PRODUCTION

NUMBER	3/31/2022	3/31/2021	12/31/2021
JM Residential Stockholm	2,870	2,773	2,855
JM Residential Sweden	2,153	2,063	2,154
JM International	2,769	2,314	2,601
JM Property Development 1)	484	335	484
Total	8,276	7,485	8,094

PROJECT PROPERTIES, GROUP

CARRYING AMOUNT, SEK M	3/31/2022	3/31/2021	12/31/2021
Properties under development	872	981	789
Completed rental unit properties	–	374	–
Completed commercial properties	24	32	23
Total	896	1,387	813

DEVELOPMENT PROPERTIES, GROUP

	JANUARY–MARCH		APRIL–MARCH	FULL YEAR
CARRYING AMOUNT, SEK M	2022	2021	2021/2022	2021
Opening balance at beginning of the period	8,205	7,831	8,215	7,831
New purchases	141	487	1,409	1,754
Transferred to production	−431	−213	−1,607	−1,388
Other	80	110	−22	8
Closing balance at end of the period	7,995	8,215	7,995	8,205

1) Refers to rental units and residential care units.

Group five-year overview

ACCORDING TO SEGMENT REPORTING, SEK M	2021	2020	2019	2018	2017
Revenue	14,608	15,388	15,692	16,161	17,008
Operating profit	2,216	2,028	2,008	1,886	2,369
Profit before tax	2,158	1,955	1,928	1,817	2,579
Total assets	17,233	16,665	17,593	16,487	15,405
Cash flow from operating activities	2,287	1,715	1,291	−473	2,013
Interest-bearing net liabilities (+)/receivables (–)	−1,363	−300	420	546	−790
Operating margin, %	15.2	13.2	12.8	11.7	13.9
Return on equity, %	21.9	20.8	22.2	22.2	38.7
Equity/assets ratio, %	50	47	42	41	40
Earnings per share, SEK	25.90	22.50	22.50	20.60	31.00
Dividend per share, SEK	13.50	12.75	12.50	12.00	11.00
Number of available building rights	35,500	37,800	35,900	35,900	34,800
Number of residential units sold	4,248	4,026	3,595	2,463	3,100
Number of housing starts	3,972	3,199	3,269	3,135	3,873
Number of residential units in current production	8,094	7,976	7,813	7,835	8,200

Kvadratum

In the attractive growing district Rosendal in Uppsala, JM is building 76 residential units ranging from studios to 3 bedrooms in the Kvadratum project. The residential units, all of which have a balcony or patio, are produced under JM's space- and priceefficient concept Smarta Kvadrat. Kvadratum offers flexible residential units, where the customer can choose to add a wall if necessary for an office, hobby room or kid's room or remove a wall for a bigger area for socializing. Rosendal is located a few kilometers south of the heart of Uppsala. Here, a sustainable district is emerging close to both the pulse of the city and lush greenery. The area offers good public and a growing selection of stores and services.

Paratiisilintu

JM is building the project Paratiisilintu in Herttoniemi, Helsinki. There will be 128 residential units ranging from studios to four bedrooms on behalf of an external customer. All of the units will have a balcony, and many of the larger units will have a sauna. The ground floor will have three commercial premises. Residents of Paratiisilintu are close to services and public transportation such as busses and the subway. The project will be certified under LEED Platinum.

Strandviolen

In Järvastaden in Solna, just north of downtown Stockholm and close to green areas, is the Strandviolen block where JM is building a first phase of 34 residential units with 1–5 bedrooms, of which the majority have a balcony or patio. The Strandviolen block will consist of 5 or 6 stories and surround a lush inner courtyard. Strandviolen offers the possibility of choosing intelligent functions – smart solutions for the home for more convenient and safer everyday life. In some of the larger residential units, it is possible to create a rental unit with its own bathroom. Järvastaden is next to a nature reserve while also walking distance to the commuter train, and downtown Stockholm is less than half an hour away by bike.

Art Garden

At a central location in Drammen, Norway, JM is building the Art Garden district, which will feature 55 flexible residential units ranging from studios to three bedrooms, all with their own balcony. The focus here is on esthetics and artistic embellishment. The residential units will share a roof terrace, and there is parking in the basement. Intelligent functions can be added to the residential units in Art Garden as options. Everyday life is made easy with the district's nearby stores, restaurants and services and direct access to swimming at Bragernes Strand. Art Garden is walking distance to public transportation and the train to Oslo.

Group quarterly overview

ACCORDING TO SEGMENT REPORTING, SEK M	2022		2021
INCOME STATEMENT	Q1	Q4	Q 3	Q2	Q 1
Revenue	3,854	4,068	3,485	3,719	3,337
Production and operating costs	−3,140	−3,282	−2,849	−2,980	−2,703
Gross profit	714	786	636	739	634
Selling and administrative expenses	−255	−273	−207	−297	−239
Gains/losses on the sale of property, etc.	7	242	16	167	11
Operating profit	466	755	445	609	406
Financial income and expenses	−16	−14	−13	−15	−16
Profit before tax	450	741	432	594	390
Taxes	−94	−89	−99	−91	−81
Profit for the period	356	652	333	503	309
CONSOLIDATED BALANCE SHEET	3/31	12/31	9/30	6/30	3/31
ASSETS
Non-current assets	351	330	405	336	298
Project properties	896	813	1,259	1,269	1,387
Development properties	7,995	8,205	7,991	8,155	8,215
Participations in tenant-owners associations, etc.	330	377	432	375	422
Current receivables	3,770	3,528	3,475	3,569	3,726
Cash and cash equivalents	4,115	3,981	3,022	2,969	2,148
Total current assets	17,105	16,903	16,179	16,337	15,898
Total assets	17,457	17,233	16,584	16,673	16,196
EQUITY AND LIABILITIES
Equity	8,904	8,608	8,023	7,808	7,439
Non-current interest-bearing liabilities	193	190	308	281	366
Other non-current liabilities	374	373	373	373	373
Non-current provisions	3,066	3,078	3,100	3,012	3,231
Total non-current liabilities	3,633	3,641	3,781	3,666	3,970
Current interest-bearing liabilities	658	667	376	737	505
Other current liabilities	4,118	4,172	4,255	4,313	4,141
Current provisions	144	145	149	149	141
Total current liabilities	4,920	4,984	4,780	5,199	4,787
Total equity and liabilities	17,457	17,233	16,584	16,673	16,196
CASH FLOW STATEMENT	Q 1	Q 4	Q 3	Q 2	Q 1
From operating activities	273	916	487	792	92
From investing activities	−6	−16	−1	−1	1
From financing activities	−146	51	−434	32	−986
Total cash flow for the period	122	951	52	823	−893
Cash and cash equivalents at end of the period	4,115	3,981	3,022	2,969	2,148
INTEREST-BEARING NET LIABILITIES/RECEIVABLES	Q 1	Q 4	Q 3	Q 2	Q 1
Interest-bearing net liabilities(+)/receivables(−)
at beginning of period	−1,363	−587	−244	449	−300
Change in interest-bearing net liabilities/receivables	−102	−776	−343	−693	749
Interest-bearing net liabilities(+)/receivables(−)
at end of period	−1,466	−1,363	−587	−244	449
DEVELOPMENT PROPERTIES	Q 1	Q 4	Q 3	Q 2	Q 1
Carrying amount at beginning of the period	8,205	7,991	8,155	8,215	7,831
New purchases	141	519	407	341	487
Transferred to production	−431	−347	−581	−247	−213
Other	80	43	10	−154	110
Carrying amount at end of the period	7,995	8,205	7,991	8,155	8,215
KEY RATIOS	Q 1	Q 4	Q 3	Q 2	Q 1
Operating margin, %	12.1	18.6	12.8	16.4	12.2
Debt/equity ratio, multiple	–	–	–	–	0.1
Equity/assets ratio, %	51	50	48	47	46
Earnings per share, SEK	5.20	9.40	4.80	7.20	4.40
Number of available building rights	36,300	35,600	36,200	37,300	37,300
Number of residential units sold	995	969	808	1,210	1,261
Number of housing starts	808	1,428	817	800	927
Number of residential units in current production	8,276	8,094	7,722	7,353	7,485

Business Segment Quarterly Overview

ACCORDING TO SEGMENT REPORTING, SEK M	2022	2021
JM RESIDENTIAL STOCKHOLM	Q 1	Q 4	Q 3	Q2	Q 1
Revenue	1,285	1,251	1,179	1,312	1,248
Operating profit	190	204	181	196	182
Operating margin, %	14.8	16.3	15.4	14.9	14.6
Average operating capital	4,644	4,771	4,963	5,157	5,283
Return on operating capital, %*)	16.6	16.0	17.3	16.7	16.2
Operating cash flow	244	388	394	417	16
Carrying amount, development properties	3,960	4,051	4,146	4,361	4,486
Number of available building rights	12,600	11,700	11,000	11,500	11,900
Number of residential units sold	264	356	261	332	357
Number of housing starts	73	265	351	239	298
Number of residential units in current production	2,870	2,855	2,703	2,526	2,773
JM RESIDENTIAL SWEDEN	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,127	1,170	951	1,154	1,042
Operating profit	174	180	145	177	160
Operating margin, %	15.5	15.4	15.2	15.3	15.4
Average operating capital	1,366	1,354	1,332	1,339	1,345
Return on operating capital, %*)	49.5	48.9	49.8	49.2	48.4
Operating cash flow	304	22	−60	326	154
Carrying amount, development properties	1,553	1,669	1,526	1,439	1,441
Number of available building rights	10,000	9,900	10,300	10,400	10,300
Number of residential units sold	375	220	280	263	358
Number of housing starts	357	300	238	362	277
Number of residential units in current production	2,153	2,154	2,226	2,178	2,063
JM INTERNATIONAL	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	1,231	1,407	1,185	1,084	856
Operating profit 1)	105	139	111	98	67
Operating margin, %	8.6	9.9	9.4	9.0	7.8
Average operating capital	3,506	3,405	3,309	3,336	3,335
Return on operating capital, %*)	12.9	12.2	12.5	11.1	8.8
Operating cash flow	−37	−60	338	−111	156
Carrying amount, development properties	2,459	2,462	2,293	2,329	2,262
Carrying amount, project properties	18	17	39	111	90
Number of available building rights	12,400	12,900	13,300	14,000	13,900
Number of residential units sold 2)	356	393	267	295	546
Number of housing starts 3)	378	522	228	199	352
Number of residential units in current production	2,769	2,601	2,458	2,314	2,314
1) Of which property sales	–	4	–	–	1
2) Of which residential units to investors	128	146	78	94	265
3) Of which residential units to investors	128	146	–	94	265
JM PROPERTY DEVELOPMENT	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue	73	80	65	65	52
Operating profit 1) 2)	4	238	12	153	4
Average operating capital	1,187	1,242	1,407	1,460	1,513
Return on operating capital, %*)	34.3	32.7	24.7	23.1	11.8
Operating cash flow	−81	664	−97	322	−88
Carrying amount, development properties	10	10	10	10	10
Carrying amount, project properties	878	795	1,220	1,158	1,297
Number of available building rights 3)	1,300	1,100	1,600	1,400	1,200
Number of residential units sold 3)	–	–	–	320	–
Number of housing starts 3)	–	341	–	–	–
Number of residential units in current production 3)	484	484	335	335	335
1) Of which property sales	–	231	–	161	–
2) Of which income from joint venture 3) Refers to rental units and residential care units.	7	8	16	6	10
JM CONSTRUCTION	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue Operating profit	262 4	295 10	200 3	226 3	230 3
Operating margin, %	1.4	3.5	1.5	1.3	1.3
Operating cash flow	−16	8	4	14	10
JM OTHER	Q 1	Q 4	Q 3	Q 2	Q 1
Revenue (elimination)	−124	−134	−95	−122	−91
Operating profit (Group-wide expenses)	−11	−15	−7	−18	−10

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

Group – IFRS

CONDENSED CONSOLIDATED INCOME STATEMENT

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
ACCORDING TO IFRS, SEK M	2022	2021	2021/2022	2021
Revenue	3,835	3,545	15,940	15,650
Production and operating costs	−3,128	−2,859	−12,704	−12,435
Gross profit	707	686	3,235	3,215
Selling and administrative expenses	−258	−245	−1,045	−1,032
Gains/losses on the sale of property, etc. 1)	7	11	41	45
Operating profit	457	452	2,232	2,227
Financial income and expenses	−21	−22	−79	−80
Profit before tax	436	430	2,152	2,147
Taxes	−91	−83	−352	−343
Profit for the period	344	347	1,801	1,804
Other comprehensive income
Items that will be reclassified as income
Translation differences from the translation of foreign operations	83	99	92	108
Items that will not be reclassified as income
Restatement of defined-benefit pensions	−34	115	−23	126
Tax attributable to other comprehensive income	7	−24	5	−26
Comprehensive income for the period	401	537	1,875	2,012
Net profit for the period is attributable to shareholders of the Parent Company	344	347	1,801	1,804
Comprehensive income for the period is attributable to shareholders of the
Parent Company	401	537	1,875	2,012
Earnings per share 2), basic, is attributable to shareholders of the Parent
Company, SEK	5.00	5.00	22.30	26.10
Earnings per share 2), diluted, is attributable to shareholders of the Parent
Company, SEK	5.00	5.00	22.20	26.00
Number of outstanding shares at end of the period	68,277,119	69,583,262	68,277,119	68,648,746
Average number of shares, basic	68,459,245	69,583,262	68,943,609	69,220,764
Average number of shares, diluted	68,794,513	70,125,557	69,278,877	69,560,505
1) Of which income from joint venture	7	10	37	40
2) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET

ACCORDING TO IFRS, SEK M	3/31/2022	3/31/2021	12/31/2021
ASSETS
Non-current assets 1)	599	556	584
Project properties	896	1,387	813
Development properties	7,995	8,215	8,205
Utilization of site leasehold rights	287	586	456
Participations in tenant-owners associations, etc.	330	422	377
Work in progress	4,175	3,643	4,073
Current receivables	6,004	5,778	5,902
Cash and cash equivalents	4,115	2,148	3,981
Total current assets	23,801	22,179	23,807
Total assets	24,400	22,735	24,391
EQUITY AND LIABILITIES 2) 3) 4) 5)
Equity	8,662	7,248	8,385
Non-current interest-bearing liabilities	636	1,307	818
Other non-current liabilities	374	373	373
Non-current provisions	3,007	3,196	3,024
Total non-current liabilities	4,017	4,876	4,214
Current interest-bearing liabilities	7,573	6,153	7,566
Other current liabilities	4,003	4,317	4,082
Current provisions	144	141	145
Total current liabilities	11,721	10,611	11,793
Total equity and liabilities	24,400	22,735	24,391
Pledged assets	622	445	476
Contingent liabilities	9,069	9,122	7,827
1) Of which right-of-use offices and cars	247	258	255
2) Of which project financing JM International	3,372	2,943	3,123
3) Of which project financing JM Residential Stockholm and JM Residential Sweden	3,118	3,023	3,338
4) Of which liabilities for property acquisition	464	550	675
5) Of which current and non-current interest-bearing lease liabilities	537	848	714

22 · JM IN T ERI M RE P O RT J ANUARY–M ARC H 2022

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

			JANUARY–MARCH FULL-YEAR
ACCORDING TO IFRS, SEK M	2022	2021	2021
Opening balance at beginning of the period	8,385	7,598	7,598
Total comprehensive income for the period	401	537	2,012
Dividend	–	−887	−887
Conversion of convertible loan	1	–	38
Repurchase of shares	−124	–	−375
Closing balance at end of the period	8,662	7,248	8,385

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		JANUARY–MARCH APRIL–MARCH
ACCORDING TO IFRS, SEK M	2022	2021	2021/2022	2021
Cash flow from operating activities before change in working
capital and taxes 1) 2)	320	−119	−488	−927
Tax paid	−151	−193	−507	−549
Investment in development properties	−365	−414	−1,490	−1,539
Payment on account for development properties	111	41	556	485
Investment in project properties	−83	−139	−391	−447
Sale of project properties	–	–	1,340	1,340
Change in current liabilities/receivables	−137	717	−179	675
Cash flow from operating activities 3)	−305	−107	−1,159	−961
Cash flow from investing activities	−6	1	−23	−17
Loans raised	271	16	918	664
Amortization of liabilities	−319	−141	−1,024	−846
Loans raised, project financing 3)	929	1,013	5,225	5,308
Amortization of debt, project financing 3)	−324	−788	−1,489	−1,951
Buy-back of shares	−124	–	−499	−375
Dividends	–	−887	–	−887
Cash flow from financing activities	433	−787	3,130	1,911
Cash flow for the period	122	−893	1,948	933
Cash and cash equivalents at end of the period	4,115	2,148	4,115	3,981
1) Of which investment in participations in tenant-owners associations and freehold residential units	−21	−277	−474	−730
2) Of which the sale of participations in tenant-owners associations and freehold residential units	90	233	694	837

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 quarter of 2022 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 93–97 of the 2021 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 (FI) and therefore overruled FI's previous decision. FI has appealed the Administrative Court's ruling to the Court of Appeal and the appeal will be considered. JM submitted a plea to the Court of Appeal in February 2022 in response to FI's appeal. For more information see JM's annual report for 2021, page 86.

Amended standards as of 2022

The amended standards according to IFRS the Group applies as of January 1, 2022, 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

SEK M	JANUARY–MARCH FULL YEAR
	2022	2021	2021
Net sales	2,380	2,358	9,710
Production and operating costs	−1,957	−1,863	−7,609
Gross profit	423	495	2,100
Selling and administrative expenses	−252	−172	−712
Gains/losses on the sale of property	–	–	–
Operating profit	172	323	1,388
Financial income and expenses	128	−33	24
Profit before appropriations and tax	299	290	1,412
Appropriations	–	–	−16
Profit before tax	299	290	1,397
Taxes	−35	−66	−279
Profit for the period 1)	264	224	1,118

1) Net profit/loss for January–March 2022 was burdened by SEK 138m after changed assumptions regarding the valuation of pension liabilities. The amount includes special payroll tax and deductions for tax.

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK M	3/31/2022	3/31/2021	12/31/2021
Assets
Non-current assets	2,214	1,751	2,214
Current assets	13,936	13,022	13,862
Total assets	16,150	14,773	16,076
Equity and liabilities
Equity	4,558	3,838	4,417
Untaxed reserves	2,390	2,410	2,390
Provisions	1,482	1,483	1,304
Non-current liabilities	417	461	417
Current liabilities	7,302	6,581	7,548
Total equity and liabilities	16,150	14,773	16,076
Pledged assets	100	100	100
Contingent liabilities	11,315	10,088	9,471

Reconciliation between segment reporting and IFRS

CONSOLIDATED INCOME STATEMENT

		JANUARY–MARCH APRIL–MARCH		FULL YEAR
SEK M	2022	2021	2021/2022	2021
Revenue for the period (segment reporting)	3,854	3,337	15,125	14,608
Restatement JM International	−19	208	−467	−240
Reclassification property sale	–	–	1,281	1,281
Revenue for the period (IFRS)	3,835	3,545	15,940	15,650
Operating profit/loss for the period (segment reporting)	466	406	2,276	2,216
Restatement JM International	−15	42	−66	−10
Leases IFR S 16	5	4	22	22
Operating profit/loss for the period (IFRS)	457	452	2,232	2,227
Profit/loss for the period (segment reporting)	356	309	1,844	1,798
Restatement JM International	−12	40	−45	7
Leases IFR S 16	1	−2	1	−1
Profit/loss for the period (IFRS)	344	347	1,801	1,804

CONSOLIDATED BAL ANCE SHEET

SEK M	3/31/2022	3/31/2021	12/31/2021
Balance sheet total (segment reporting)	17,457	16,196	17,233
Restatement JM International	−323	−271	−303
Reclassification project financing JM International, interest-bearing	3,345	2,561	3,121
Reclassification project financing JM International, non-interest-bearing 1)	269	382	292
Reclassification project financing JM Residential Stockholm and Sweden, interest-bearing	3,476	3,181	3,692
Transfer between Progress billing in excess of recognized revenue to Revenue less progress
billings	−358	−158	−354
Leases IFR S 16	534	844	711
Balance sheet total (IFRS)	24,400	22,735	24,391

1) Billing on account to customers.

CONSOLIDATED EQUITY

SEK M	3/31/2022	3/31/2021	12/31/2021
Equity (segment reporting)	8,904	7,439	8,608
Restatement JM International	−239	−187	−221
Leases IFR S 16	−3	−4	−3
Equity (IFRS)	8,662	7,248	8,385

GROUP KEY FIGURES

%	3/31/2022	3/31/2021	12/31/2021
Equity/assets ratio (segment reporting)	51	46	50
Equity/assets ratio (IFR S)	36	32	34

CONSOLIDATED CASH FLOW

	JANUARY–MARCH APRIL–MARCH			FULL YEAR
SEK M	2022	2021	2021/2022	2021
Cash flow from operating activities (segment reporting)	273	92	2,469	2,287
Reclassification project financing JM International	−111	193	−654	−350
Reclassification project financing JM Residential Stockholm and
JM Residential Sweden, interest-bearing	−494	−418	−3,082	−3,006
Leases IFR S 16	26	26	108	108
Cash flow from operating activities according to IFRS	−305	−107	−1,159	−961

CONSOLIDATED INTEREST-BEARING NET LIABILITIES/RECEIVABLES

SEK M	3/31/2022	3/31/2021	12/31/2021
Interest-bearing net liabilities (+)/receivables (−) at end of period
(segment reporting)	−1,466	449	−1,363
Reclassification project financing JM International	3,345	2,561	3,121
Reclassification project financing JM Residential Stockholm and Sweden, interest-bearing	3,476	3,181	3,692
Leases IFR S 16	537	848	714
Interest-bearing net liabilities (+)/receivables (−) at end of period (IFRS)	5,892	7,039	6,163

Stockholm, April 29, 2022 JM AB (publ)

Johan Skoglund President and CEO

This interim report has not been reviewed by the Company's auditors.

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 2,500 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 13.00 CEST on April 29, 2022.

For more information please contact:

Carl Bandhold, CFO, Head of IR Email: cfo@jm.se Tel (switchboard): +46 8 782 87 00

Financial Calendar

July 12, 2022 I	nterim Report January–June
October 27, 2022 I	nterim Report January–September

Press Releases, Q1 2022

March 31 A	nnual General Meeting – JM AB
March 9	JM Annual Report 2021
February 25 N	otice of JM AB's Annual General Meeting on
	March 31, 2022
February 2	Year-End Report January–December 2021
January 31	Conversion of convertible debentures in to shares
	in JM AB (publ).

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, Gustav Kaiser, Pixery, Playa Arkkitehdit, Sightline.

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 jm.se/en