Interim report January –

June 2009

2009-08-25 081024/ytf 2

JM Group

Income: SEK 9.8 billion

Total assets: SEK 10.1 billion

No. of building rights: 30,500

No. of employees: 1,930

Market cap: SEK 6.5 billionNorway Sweden

DenmarkBelgium

Finland86 %

10 %

3 % 1 %

2009-08-25 081024/ytf 3

Group Summary January –

June 2009

• Income decreased by 35 percent to SEK 4,421m (6,829)

• Earnings before tax decreased to SEK 87m (1,014) after write-downs of SEK 87m (0) for development properties

• Property sales of SEK 166m (73) provided capital gains of SEK 41m (21).

2009-08-25 081024/ytf 4

Group Summary January –

June 2009

• Number of residential units sold 1,504 (1,294)

• Number of housing starts 683 (1,237)

• Earnings per share was SEK 0.70 (8,20)

• Return on equity was 4.7 percent (46.8)

• Cash flow from operations totaled SEK 165m (55).

2009-08-25 081024/ytf 5

Improved demand and sales in Sweden and Norway

• Improved demand in Sweden and Norway during the first six months

• Improved home sales in form of signed contracts in Sweden and Norway

• The percentage of sold or reserved residential units in relation to on- going production has increased to a normal level.

2009-08-25 081024/ytf 6

Prices on the existing home market

Tenant-owned apartment prices in cities, existing home market 1997 – Q2 2009SEK/sq.m.

Source: Tyréns Temaplan AB

0

10000

20000

30000

40000

50000

60000

Q1 199

7 Q3Q1 1

998 Q3

Q1 199

9 Q3Q1 2

000 Q3

Q1 200

1 Q3Q1 2

002 Q3

Q1 200

3 Q3Q1 2

004 Q3

Q1 200

5 Q3Q1 2

006 Q3

Q1 200

7 Q3Q1 2

008 Q3

Q1 200

9

Sthlm, Inner city Sthlm, Inner suburbs Gothenburg Malmö

2009-08-25 081024/ytf 7

903 817 801

308 316 169512

719

2730

500

1 000

1 500

2 000

2007 2008 2009 2007 2008 2009 2007 2008 2009

Q1-Q2 Q3-Q4

Improved home sales figures in all marketsNo. of

units sold

JM Residential Stockholm JM Residential Sweden JM International

1,907

1,502

471

1,061

564

246

2009-08-25 081024/ytf 8

Low level of housing starts in all marketsNo. of

housingstarts

1,515

730

1,820

JM Residential Stockholm JM Residential Sweden JM International

259

597

973

945 900

281

736

242 227489

95175

0

500

1 000

1 500

2 000

2007 2008 2009 2007 2008 2009 2007 2008 2009

Q1-Q2 Q3-Q4

2009-08-25 081024/ytf 9

Number

Lower production and increased percentage of booked and sold reduces the risk in ongoing production in Q2 2009

3,400 residential units in ongoing production

0

500

1 000

1 500

2 000

2 500

3 000

3 500

dec-06 mar-07 jun-07 sep-07 dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 jun-090%

20%

40%

60%

80%

100%

JM Residential StockholmJM Residential Sweden

JM InternationalPercentage of booked and sold in ongoing production, Group (%)

2009-08-25 081024/ytf 10

Residential units in current production JM Group

2009-06-30 2009-03-31 2008-12-31

Number of residential units 3,400 3,994 5,118

Number of residential units sold 1,508 1,649 2,297

Number of residential units booked 609 585 475

Percentage sold residential units (%) 44 41 45

Percentage reserved residential units(%) 18 15 9

Percentage sold and reserved residential units(%) 62 56 54Completed production, number of unsold units 1)

-including on the balance sheet310 138

216 105

245 66

1) After final occupancy according to plan

2009-08-25 081024/ytf 11

January – June Full YearSEKm 2009 2008 2008

Income 1,645 2,981 5,317

Operating profit 225 667 920

Operating margin (%) 13.7 22.4 17.3Number of available building rights 12,200 12,900 12,200

JM Residential Stockholm

• Improved demand and sales

• Decreased income

• Decreasing margin

• Stable cash flow.

2009-08-25 081024/ytf 12

JM Residential Sweden

• Improved demand and sales

• Decreased income

• Decreasing margin

• Negative cash flow – unfinanced projects.

January – June Full YearSEKm 2009 2008 2008

Income 1,218 1,968 3,263

Operating profit 47 258 197

Operating margin (%) 3.9 13.1 6.0Number of available building rights 10,700 11,800 11,000

2009-08-25 081024/ytf 13

JM International

• Improved demand and sales in Norway

• Falling house prices in Denmark

• Write-downs of SEK 87m for development properties in Copenhagen

• Negative cash flow – negative results.

January – June Full YearSEKm 2009 2008 2008

Income 585 1,205 2,058

Operating profit -205 49 -176

Operating margin (%) -35.0 4.1 -8.6Number of available building rights 7,600 8,300 7,800

2009-08-25 081024/ytf 14

JM Property Development

• Gains from property sales SEK 13m (3)

• Sale of entire property portfolio in Älta, Nacka municipality, 2008 with positive cash flow of SEK 456m during the first six month

• Production ongoing for JM’s new head office in Frösunda

• Project development of commercial properties ongoing in the Dalénum area on Lidingö – 89 % occupancy rate.

January – June Full YearSEKm 2009 2008 2008

Income 149 102 213

Operating profit 52 24 75

2009-08-25 081024/ytf 15

JM Production

• Demand for contracting operations in the Stockholm market is still robust

• Stable margin

• Stable orders.

January – June Full YearSEKm 2009 2008 2008

Income 1,080 873 2,008

Operating profit 59 48 124

Operating margin (%) 5.5 5.5 6.21) Of which internal 256 300 630

1)

2009-08-25 081024/ytf 16

Region No. of building rights

Available building rights portfolio

Stockholm 12,200Malmö/Lund 3,650Gothenburg 1) 3,150Uppsala 2) 3,900Norway 5,400Copenhagen 900Helsinki 300Belgium 1,000Total approximately 30,500

1) West region2) East region

2009-08-25 081024/ytf 17

Lower level of development properties Building rights in Balance Sheet

SEKm 2006 2007 2008 2009

Opening balance 2,925 4,348 5,282 5,620

Plus 2,718 2,130 1,571 140

Minus -1,295 -1,196 -1,233 -369

Closing balance 4,348 5,282 5,620 5,391

1)

1) Including write-down of SEK 320m2) Including write-down of SEK 87m

Jan-Jun

2)

2009-08-25 081024/ytf 18

16 years production in Balance Sheet Low production rate -

over invested building rights portfolio

JM Residential Stockholm 8,500 354 24.0

JM Residential Sweden 6,900 582 11.9

JM International 5,000 339 14.8

Group 20,400 1,275 16.0

No. building rights In Balance Production Average2009-06-30 Sheet starts period, years

1) Residential building rights2) 12-month period3) Guideline value approx. 4 years

1)

2) 3)

2009-08-25 081024/ytf 19

Strong

cash flow Q2 2009

Q2 Q3 Q4 Q1 Q2Cash Flow Statement, SEKm 2008 2008 2008 2009 2009

Cash flow from operating activities 290 -196 242 -464 629

Cash flow from investment activities -13 37 -21 4 -45

Cash flow from financing activities -1,414 72 306 203 -147

Total cash flow for the quarter -1,137 -87 527 -257 437

Liquid assets at end of period 663 578 1,111 858 1 294

1) Of which payment flow from sale of project properties 57 10 25 239 318

2) Of which net investment in development properties 62 -528 88 70 53

1) 2)

2009-08-25 081024/ytf 20

138 unsold residential units in the Balance Sheet –

SEK 416m

155 159 171

290

416

0

50

100

150

200

250

300

350

400

450

Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009

SEKm

2009-08-25 081024/ytf 21

Good financial position

and liquidity

• Equity/Assets ratio is 33 percent, netting of deferred payments implies 37 percent

• Available liquidity was SEK 4,094 m (3,463) of which cash and cash equivalents SEK 1,294m (663)

• Unutilized overdraft facilities and credit lines SEK 2,800m (2,800)

• Credit lines of SEK 2,400m have an average maturity of 1.5 years.

-2 000

-1 000

0

1 000

2 000

3 000

2003 2004 2005 2006 2007 2008 Jan-Jun2009

-2

-1

0

1

2

3

Net interest-bearing liability/receivableDebt/equity ratio

SEKm times

1) Non interest-bearing deferred payments for property acquisitions amounted to approx. SEK 0.4 billion (1.4)

1)

Net interest-bearing liability/receivable

2009-08-25 081024/ytf 22

Financial income 10Interest income 10

Financial expenses -74Interest expenses -60Interest expense pensions -14

Net financial items -64

Net financial items January –

June 2009, SEKm

2009-08-25 081024/ytf 23

Consolidated Balance Sheet

SEKm 2009-06-30 2008-06-30 2008-12-31AssetsProject properties 731 802 614Development properties 5,391 5,640 5,620Other assets 4,011 3,191 3,821Total 10,133 9,633 10,055Shareholders' equity and liabilitiesShareholders' equity 3,352 3,122 3,241Non-current liabilities 2,085 3,049 2,164Current liabilities 4,696 3,462 4,650Total 10,133 9,633 10,055

Equity ratio (%) 33 32 32

2009-08-25 081024/ytf 24

Components of profit/loss Percentage of completion method (gross) Q2 2009 (Q1 2009)

Cost-based effect

SEK 141m (151)

Revaluation effect

SEK 24m (47)

Sales effect SEK 88m (-3)+ +

=Profit/loss

for the period SEK 253m (195)

Recognized expenses x contribution margin (for the current period).

Changed assessment about forecast total contribution margin and/or total cost of a project that involves revaluation of recognized profit/loss from earlier periods.

Change in the relationship between stage of completion and sales rate in a period (incoming – outgoing)(Adjustment of accumulated profit for unsold homes).

Always positive Usually positive Positive/negative

2009-08-25 081024/ytf 25

Revaluation effects –

housing business

SEKm Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009Group 303 89 -90 47 24

The net of positive and negative revaluation effects in residential projects during the second quarter totaled SEK 24m, which indicates a clear stabilization of assessed market conditions.

Business segments Stockholm SwedenInterna-

tional TotalQ1 2009 74 10 -37 47

Q2 2009 43 7 -26 24

2009-08-25 081024/ytf 26

Production

starts when

project

financing is arranged

• Booking rates reached high enough levels during Q2 to enable start of 15 projects in Sweden with about 650 residential units

• Production started during Q2 on 301 residential units with negotiated financing

• Financing is secured for production start of about 150 residential units during Q3

• Negotiations with financial institutions continue for the remaining 200 units

• In addition, 70 homes in a rental project ordered by an external party were started i Q2

• The financing situation is still considered to be slow.

2009-08-25 081024/ytf 27

JM today

• Customer-focused – strong brand

• 30,500 residential building rights in attractive locations – high quality and good distribution

• Declining economy and weakening demand – fundamentally favorable prospects in the long term

• Industrialized process and attractive homes

• Strong balance sheet and financial flexibility - cash flow focus

• Well balanced risk profile

• Competent and engaged co-workers.