Capital Markets Day 23 November 2017 Sören Bergström, Business Unit Manager JM Residential Sweden, Director of Purchasing
JM Residential Sweden Areas of operation Regional offices East Region, Uppsala West Region, Gothenburg South Region, Malmö Offices Västerås Örebro Linköping 2 11/23/2017 CMD 2017 / SB
JM Residential Sweden SEK m 2017 2) 2016 2015 Revenue 4,212 3,820 3,278 Operating profit 1) 614 480 308 Operating margin, % 14.6 12.6 9.4 Number of available building rights Number of residential units in current production 10,100 9,700 9,900 2,196 2,240 1,979 Number of employees 597 586 539 Havsprinsen, Dockan, Malmö 1) Of which, property sales 0 37 0 2) 12-month period 3 11/23/2017 CMD 2017 / SB
Number 1 600 Sold residential units JM Residential Sweden 1 400 1 273 1 318 1 200 1 000 902 951 981 1 001 800 600 400 200 0 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 4 11/23/2017 CMD 2017 / SB
Number of units Housing starts JM Residential Sweden 1 600 1 400 1 200 1 000 800 779 861 1 003 1 228 1 336 1 057 600 400 200 0 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 5 11/23/2017 CMD 2017 / SB
The market Good demand in Gothenburg, Malmö, Lund, Västerås and Linköping Normalized demand in Uppsala, but greater supply and more companies Borggården Kongahälla, Kungälv 6 11/23/2017 CMD 2017 / SB
Prices on the existing home market SEK/sq.m. 60 000 Tenant-owned apartments on JM Residential Sweden s markets Q3 2008 Q3 2017 50 000 40 000 30 000 20 000 Gothenburg Uppsala Lund Linköping Malmö Örebro Västerås 10 000 0 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Source: WSP 7 11/23/2017 CMD 2017 / SB
Building rights portfolio Number 09/30/2017 2016 2015 East Region 3,500 3,600 3,600 West Region 3,300 2,700 3,000 South Region 3,300 3,400 3,300 Total approx. 1) 10,100 9,700 9,900 1) Of which, recognized on the balance sheet 6,600 5,500 5,200 8 11/23/2017 CMD 2017 / SB
- Building with 23 floors and 150 residential units Silon Eriksberg, Gothenburg - Wide views of the city and water starting on the 6th floor - Sales start 2018 9 11/23/2017 CMD 2017 / SB
Lindö Strand Norrköping Approx. 130 residential units Sales start Fall 2018 The residential buildings are positioned for optimal lake views 10 11/23/2017 CMD 2017 / SB
400 residential units in Lund, sales start 2018 11 11/23/2017 CMD 2017 / SB
Housing starts, residential units January-September 2017 SEK / RFA Lowest price 34,000 Highest price 59,000 12 11/23/2017 CMD 2017 / SB
Our Customers Prerequisites A couple who wants to buy a residential unit from JM 3 rooms 72 sq.m. Example: SEK 41,000/sq.m. RFA = SEK 2,952,000 Annual fee: 675 / RFA Own deposit: 15 % = SEK 443,000 Mortgage: 85 % = SEK 2,509,000 With a total income of SEK 55,000 / month you will meet todays mortgage requirements and potential loan framework of 4.5 * gross income 13 11/23/2017 CMD 2017 / SB
Planning work started in 2004 - Project consists of 53 residential units Patience in the planning process Böljan, Helsingborg The plan was adopted in 2015 Production progressed smoothly and today 52 apartments have been sold First occupancy March 2018 - Local Plan 1 adopted in June 2005, annulled by the Government in June 2006 - Local Plan 2 adopted in September 2011, annulled by the Land and Environment Court of Appeal in January 2013 Municipality adopted the plan for the 3:rd time in 2014 County Administrative Board denied the appeal in March 2015 Land and Environmental Court of Appeal is expected to rule on the matter in October/November 2015 14 11/23/2017 CMD 2017 / SB
Market share JM Residential Sweden % 18 Tenant-owned apartments 2016 16 14 12 10 8 6 4 2 0 JM Source: Evidens and Byggfakta 15 11/23/2017 CMD 2017 / SB
Capital Markets Day 23 November 2017 Purchasing
JM s Purchasing volume in Sweden 2016 SEK 7.8 billion 1) 30% 50% 20% Subcontractors Services Materials 1) Supplier invoiced sales in Sweden incl. Group internal sales (excl. VAT) 17 11/23/2017 CMD 2017 / SB
Increased volume under framework agreements 2016 2014 Suppliers with framework agreements 528 455 Volume purchased from suppliers with framework agreements JM Residential Sweden 69 % 62 % 18 11/23/2017 CMD 2017 / SB
Product / process development Well-developed system for transfer of experiences All JM employees are able to submit improvement suggestions, which is an important part of how we transfer our experiences. It helps us work together to develop and improve. 2013 2014 2015 2016 up to June 2017 Number of suggestions / opinions 750 1,100 1,250 1,650 1,044 19 11/23/2017 CMD 2017 / SB
Logistics Delivery precision a requirement for uninterrupted production 2014 Measurement possible 2016 30,000 deliveries 97 % Right day Goal 2017: all suppliers >95 % 20 11/23/2017 CMD 2017 / SB
JM has chosen to work with framework agreements to Ensure delivery capacity Minimize complaints / non-conformance costs Lower the purchase price Develop products together with our suppliers Contribute to JM s sustainability work 21 11/23/2017 CMD 2017 / SB