Slides
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Interim report January–March 2025 PRESENTATION APRIL 24, 2025
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Summary Continued good underlying market conditions Increased number of residential units sold and housing starts Balance in housing starts and sales Geopolitical uncertainty Shorter lead times Pressure on margins also in 2025
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JANUARY – MARCH 2025 • Number of residential units sold increased to 555 (480). • Number of housing starts increased to 577 (145). • Number of residential units in current production decreased to 4,511 (5,068). • Residential building rights portfolio amounted to 37,100 (38,300). Sweden 1) 72 % Norway 1) 15 % Finland 1) 13 % No. of employees 3 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Group Summary 1,860 1) Group revenue over a 12-month period
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JANUARY – MARCH 2025 • Revenue decreased to SEK 2,539m (3,034). • Operating profit decreased to SEK 130m (160) and operating margin decreased to 5.1 percent (5.3). • Profit before tax decreased to SEK 90m (128). • Earnings per share amounted to SEK 0.80 (1.23). • Return on equity amounted to 2.6 percent (2.3). • Cash flow from operations amounted to SEK –509m (–949). • According to IFRS, revenue amounted to SEK 2,279m (2,765) and earnings per share to SEK 0.55 (0.74). 1) According to segment reporting. 4 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Group Summary 1) 0 4 8 12 16 20 0 500 1 000 1 500 2 000 2 500 2021 2022 2023 2024 April/March 2024/2025 %SEK m Operating profit Operating margin
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Marginally increased housing prices 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 0 20 000 40 000 60 000 80 000 100 000 120 000 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025 Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö Oslo Municipality (NOK) Capital region of Helsinki (EUR) Tenant-owners associations apartment prices in major cities in Sweden, and freehold units in Oslo Municipality and Helsinki capital region SEK, NOK/sq.m. Source: Mäklarstatistik and WSP, Q1 2025 Oslo Eiendom Norge and Helsinki Finnish Statistikcentralen EUR/sq.m. 5 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025
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51 168 224113 172 146 77 62 160 20 78 25 218 479 480 555 0 100 200 300 400 500 600 700 2023 2024 2025 JM Residential Stockholm JM Residential Sweden JM Norway JM Finland JM Property Development JANUARY – MARCH Number of units 6 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Higher sales in the quarter
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145 86139 16641 202 34 123 214 145 577 0 100 200 300 400 500 600 700 2023 2024 2025 JM Residential Stockholm JM Residential Sweden JM Norway JM Finland JM Property Development Number of units 7 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 JANUARY – MARCH Significantly increased number of housing starts in the quarter
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Fewer residential units in production 0% 20% 40% 60% 80% 100% 0 3 000 6 000 9 000 12 000 15 000 Q1 2019 Q2 Q3 2019 Q4 Q1 2020 Q2 Q3 2020 Q4 Q1 2021 Q2 Q3 2021 Q4 Q1 2022 Q2 Q3 2022 Q4 Q1 2023 Q2 Q3 2023 Q4 Q1 2024 Q2 Q3 2024 Q4 Q1 2025 56% Number Percentage of sold/reserved in current production, Group (%)Normal level sold/reserved % JM Residential Stockholm JM Residential Sweden JM Norway JM Finland JM Property Development 8 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 NUMBER OF RESIDENTIAL UNITS IN PRODUCTION AND PERCENTAGE SOLD/RE SERVED
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NO. OF BUILDING RIGHTS 1) REGION 03/31/2025 03/31/2024 Stockholm 2) 12,700 13,700 Malmö/Lund 3) 3,700 3,800 Gothenburg 3) 3,200 3,600 Uppsala 3) 3,900 4,300 Norway 5,700 6,200 Finland 7,900 6,700 T otal 37,100 38,300 1) Rounded to the nearest hundred 2) Of which 1,600 and 1,700 building rights for rental units and residential care units 3) Refers to JM Residential Sweden regions South, West and East 9 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Attractive building rights portfolio
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Decreasing lead time 03/31/2025 SEK m IN BALANCE SHEET NO. IN BALANCE SHEET HOUSING STARTS 1) AVERAGE PERIOD, YEARS 2) JM Residential Stockholm 3,366 6,400 699 9.2 JM Residential Sweden 1,871 8,100 704 11.5 JM Norway 981 2,700 577 4.7 JM Finland 1,142 3,800 484 7.9 JM Property Development 237 600 205 2.9 Group 7,597 21,600 2,669 8.1 BUILDING RIGHTS 1) 12-month rolling 2) Guideline value 5 years 10 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025
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328 1,278 0 200 400 600 800 1000 1200 1400 0 50 100 150 200 250 300 350 400 Q3 2020 Q1 2021 Q3 2021 Q1 2022 Q3 2022 Q1 2023 Q3 2023 Q1 2024 Q3 2024 Q1 2025 Number of unsold units in BS Participations in tenant-owners associations, etc. SEK m According to segment reporting. SEK mNumber 11 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Increased number of unsold residential units in Balance Sheet
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Decreased working capital tied up resulted in improved cash flow -2 000 -1 500 -1 000 -500 0 500 1 000 1 500 2 000 Q2 Q3 2022 Q4 Q1 2023 Q2 Q3 2023 Q4 Q1 2024 Q2 Q3 2024 Q4 Q1 2025 Quarterly cash flow from operating activities 12-month rolling SEK m JAN – MAR YEAR SEK m 2025 2024 R12 2024 Operating activities –509 –949 171 –268 Investing activities –16 –11 –74 –69 Financing activities 464 –67 –295 –827 Period cash flow –61 –1,027 –198 –1,164 12 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 GROUP CASH FLOW According to segment reporting
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Continued good liquidity -0,4 -0,2 0 0,2 0,4 0,6 -4 000 -2 000 0 2 000 4 000 6 000 2021 2022 2023 2024 March 31, 2025 Net interest-bearing liability(-)/receivable(+) Avalible liquidity Debt/equity ratio • Equity/Assets ratio 56 percent (52). • Available liquidity SEK 2,929m (3,132) of which cash and cash equivalents SEK 361m (566). • Unutilized overdraft facilities and credit lines SEK 2,568m (2,567). • Credit lines of SEK 2,800m have an average maturity of 2.3 years (2.4). SEK m 1) According to segment reporting 2) Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 272 m (750) Net interest-bearing liability(-)/receivable(+) 1) 2) 13 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Times -2,944
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Increased sales effect in the quarter + + = Cost-based effect SEK 110m (144) Recognized expenses x contribution margin (for the current period) Always positive Revaluation effect SEK 87m (45) Profit/loss for the period SEK 251m (243) Changed assessment about forecast total contribution margin and/or total cost of a project that involves revaluation of recognized profit/loss from earlier periods Usually positive Change in the relationship between stage of completion and sales rate in a period (incoming – outgoing) (Adjustment of accumulated profit for unsold residential units) Positive / negative Sales effect SEK 54m (54) 14 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 PERCENTAGE OF COMPLETION METHOD (GROSS) Q1 2025 (Q1 2024)
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Decreased price reductions contributed to a positive revaluation effect SEK m Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Group 45 85 97 117 87 BUSINESS SEGMENT Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 JM Residential Stockholm –54 –12 9 30 7 JM Residential Sweden 13 38 47 64 46 JM Norway 65 26 26 31 22 JM Finland 21 33 15 –8 12 15 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 REVALUATION EFFECT – HOUSING BUSINESS
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JM Residential Stockholm • Customers’ willingness to sign a contract early has improved gradually. • Increased number of sold residential units but fewer housing starts in the first quarter. • Lower level of revenue but increased operating profit and margin. • Return on operating capital for the past twelve months improved compared to the previous year . • Production was started in the first quarter on a total of 86 residential units in apartment buildings in Solna. JANUARY – MARCH SEK M 2025 2024 Revenue 849 882 Operating profit 1 -47 Operating margin, % 0.1 –5.3 Number of residential units sold 224 168 Number of housing starts 86 145 Utblicken, Huvudsta Strandpark, Solna, 86 residential units 16 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025
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JM Residential Sweden JANUARY – MARCH SEK M 2025 2024 Revenue 598 600 Operating profit 18 17 Operating margin, % 3.1 2.9 Number of residential units sold 146 172 Number of housing starts 166 – 17 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Silveraxet, Eriksberg, Gothenburg, 67 residential units • The willingness to sign a contract was below normal with some exceptions. • Increased number of housing starts but fewer sold in the first quarter. • Revenue and operating margin in line with the previous year. • Return on operating capital for the past twelve months was in line with the previous year . • Production was started in the first quarter on a total of 166 residential units in apartment buildings in Gothenburg, Västerås and Uppsala.
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JM Norway JANUARY – MARCH SEK M 2025 2024 Revenue 460 690 Operating profit 26 70 Operating margin, % 5.7 10.1 Number of residential units sold 160 62 Number of housing starts 202 – 18 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Langhus Gård, Nordre Follo, 83 residential units • Sales of newly produced homes on the Norwegian market were lower than the previous year. • Increased number of sold residential units and housing starts in the first quarter. • Lower level of revenue and operating margin. • Return on operating capital for the past twelve months was lower than the previous year . • The business segment has entered into a joint arrangement, signing an agreement to acquire approximately 100 building rights in Nydalen, Oslo.
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JM Finland JANUARY – MARCH SEK M 2025 2024 Revenue 332 388 Operating profit 20 26 Operating margin, % 6.0 6.7 Number of residential units sold 1) 25 78 Number of housing starts 2) 123 – 1) Of which residential units to investors – 50 2) Of which residential units to investors 71 – 19 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Fillaristi, Helsinki, 34 residential units • Activity on the housing market in the Helsinki region increased during the first quarter . • Increased number of and housing starts, of which one project in JM’s own balance sheet, but fewer sold residential units in the first quarter • Lower revenue and operating margin. • Return on operating capital for the past twelve months was in line with the previous year . • During the first quarter, approximately 50 building rights were acquired in Helsinki, and the business segment signed an agreement to acquire approximately 450 building rights in Espoo.
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JM Property Development JANUARY – MARCH SEK M 2025 2024 Revenue 169 367 Operating profit 80 104 Operating margin, % 47.5 28.4 Number of residential units sold – – Number of housing starts – – 20 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025 Bovetet, Söderdalen, Järfälla, 205 rental units • During the first quarter, the transaction market was cautious, with few transactions in the housing segment. • Lower level of revenue but improved operating margin. • During the quarter, completed commercial projects were settled. • Return on operating capital for the past twelve months improved compared to the previous year . • The business segment has two projects in current production.
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Sustainable residential development • JM has reduced the climate emissions by 17 percent, which also exceeded the Group's target. • All completed projects in our own operations during the period received Nordic Swan Ecolabel certification. • JM has entered a collaboration with Cemvision, whose technology can reduce the climate impact of cement by up to 95 percent. Tests are planned for 2025. 21 JM INTERIM REPORT JANUARY – MARCH 2025 4/24/2025
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Good long-terms conditions Continuously cautious housing market and high cost level affects profitability Customer focused – strong brand Well-balanced risk profile 37,100 building rights in attractive locations 80 years of urban development Competitive production costs
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We are laying the foundation for a better life.