Year-end Report 2015February 4, 2016

JM Group

2015-10-21 │ ytf2 │

Revenue: SEK 13.9 billion

Total assets: SEK 12.0 billion

No. of building rights: 31,100

No. of employees: 2,316

Market Cap: SEK 17.2 billion 1)

NorwaySweden

Denmark Belgium

Finland

1) 12-month period1) SEK 234 per share

79 %

18 %

1 %

2 %

0 %

0

2

4

6

8

10

12

14

16

18

20

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2010 2011 2012 2013 2014 2015

Operating profit Operating margin

• Revenue increased toSEK 14,447m (13,869)

• Operating profit wasSEK 1,590m (1,716)

• Operating margin decreasedto 11.0 percent (12.4) due to a change in the project composition in JM Residential Stockholm

• Gains from property sales SEK 56m (25)

Group Summary January – December 2015

2015-10-21 │ ytf3 │

According to segment reporting%SEK m

1) 12-month period

1)

Group Summary January – December 2015

According to IFRIC 15

• Revenue decreased to SEK 13,939m (14,216)

• Operating profit decreased toSEK 1,499m (1,819)

• Profit before tax decreased to SEK 1,427m (1,744)

• Earnings per share amounted to SEK 14.50 (17.00)

• Return on equity was 23.7 percent (28.7)

2015-10-21 │ ytf4 │

• Number of residential units sold 3,770 (3,195)

• Number of housing starts 3,731 (3,445)

• Cash flow from operations was SEK -230m1) (978)

• Building rights portfolio 31,100 (29,400)

• Surplus value development properties SEK 4.2 bn (2.8)

• The Board proposes a dividend of SEK 8.25 (8.00) per share and a buy-back authorization

Group Summary January – December 2015

2015-10-21 │ ytf5 │

1) Including payment for the Marievik property of SEK 765m and Racketen property of SEK 800m

Operating profit according to IFRIC 15

2015-10-21 │ ytf6 │

Januari - DecemberOperating profit, SEK m 2015 2014JM Residential Stockholm 1,078 1,278JM Residential Sweden 308 216JM International 166 135JM Property Development 38 51JM Construction 45 81

Group-wide expenses -45 -45Total as stated in segment reporting 1,590 1,716Restatement JM International 1) -91 103Total 1,499 1,8191) Effect of restatement on revenue and profit and loss according to IFRIC 15

in relation to segment reporting

Strong sales and higherlevel of housing starts

• Demand in Sweden and Norway increased during the year

• Strong sales in Sweden and Norway • Higher level of housing starts for residential

units• The change in the project composition for our

housing business in Stockholm is having a negative impact on the margin

• Housing operations in the rest of Sweden developed favorably in terms of both profit and margin

• The percentage of sold/reserved residential units in relation to ongoing production 86 % (78) – high level

2015-10-21 │ ytf7 │

Prices on the existing home market

2015-10-21 │ ytf8 │

Tenant-owned apartment prices in cities, existing home market Q4 2006 – Q4 2015SEK/sq.m.

Source: Mäklarstatistik and WSP

010 00020 00030 00040 00050 00060 00070 00080 00090 000

100 000

Q42006

Q42007

Q42008

Q42009

Q42010

Q42011

Q42012

Q42013

Q42014

Q42015

Sthlm, Inner city Sthlm, Nearby suburbs Gothenburg Malmö

1,060 1,160 1,230

735 684951

413 379650

254

453393

370

216 297

322

134 228

193

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

High level of sold residential units

2015-10-21 │ ytf9 │

Numberof units

Q1 – Q3 Q4

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

1,513

951

547

254

1,553

981

607

54

1,600

1,273

843

54

9781,128 1,197

618 676860

276473 554

20054

426377

470

243327

368

212

180228

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

High level of housing starts

2015-10-21 │ ytf10 │

Q1-Q3 Q4

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

Numberof units

1,404

861

488

200

1,505

1,003

653

284

1,667

1,228

782

54

Mejeriet - ÅrstaStockholm

2016-02-04 │ Press- och analytikerpresentation // ytf11 │

No. of residential units 136Housing starts Q4 2015 76Completed in 2017

Sockertorget 2Lund

2016-02-04 │ Press- och analytikerpresentation // ytf12 │

No. of residential units 176Housing starts Q4 2015 63Completed in 2017

InndalsveienBergen

2016-02-04 │ Press- och analytikerpresentation // ytf13 │

No. of residential units 79Housing starts Q4 2015 79Completed in 2017

Average number of housing starts per phase, units in apartment blocks

2015-10-21 │ ytf14 │

86

58

45

63

0

20

40

60

80

100

120

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Stockholm Sweden International Average value, total

Number

7,212 1) residential units in current production

2015-10-21 │ ytf15 │

0%

20%

40%

60%

80%

100%

01 0002 0003 0004 0005 0006 0007 0008 0009 000

10 000

Q4 Q12012

Q2 Q32012

Q4 Q12013

Q2 Q32013

Q4 Q12014

Q2 Q32014

Q4 Q12015

Q2 Q32015

Q4

NumberPercentage sold/reserved implicates low

risk in current production in Q4 2015

Percentage of sold/reserved in current production, Group (%)

JM InternationalJM Residential SwedenJM Residential Stockholm

Normal level sold/reserved

Total

1) Including 338 rental and residential care units within JM Property Development – not included in percentage sold/reserved

Residential units in current productionJM Group

31 dec 2015

31 dec 2014

Number of residential units 1) 7,212 6,375

Number of residential units sold 4,410 3,387

Number of residential units reserved 1,543 1,249

Sold residential units, % 64 57

Reserved residential units, % 22 21

Sold/reserved residential units, % 86 78

Completed production, no. of unsold units 2) 98 91

- including on the balance sheet 71 621) Including rental and residential care units within

JM Property Development – not included in percentage sold/reserved 338 4302) After final occupancy according to plan

2015-10-21 │ ytf16 │

JM Residential Stockholm

2015-10-21 │ ytf17 │

January - December SEK m 2015 2014

Revenue 6,273 5,692

Operating profit 1) 1,078 1,278

Operating margin, % 17.2 22.5

Number of available building rights 12,400 11,900Number of residential units in current production 3,627 3,2931) Of which property sales 0 10

• Demand developed favorably• Strong sales• A geographic change in the project composition, higher

costs for land and more normalized revaluation effects are having a negative impact on the margin

• Cash flow is in balance taking into consideration payment for earlier acquisition of development properties

JM Residential Sweden

2015-10-21 │ ytf18 │

• Demand developed favorably

• Strong sales

• Improved profit and margin

• Cash flow was strengthened by decreased working capital

January - December SEK m 2015 2014

Revenue 3,278 2,764

Operating profit 1) 308 216

Operating margin, % 9.4 7.8

Number of available building rights 9,900 9,400Number of residential units in current production 1,944 1,5281) Of which property sales 0 0

JM International

2015-10-21 │ ytf19 │

• Stable demand • Strong sales I Norway• Property sales completed in Denmark and Belgium – geographic

focus

• Cash flow strengthened by sale of development properties

January - December SEK m 2015 2014Revenue 3,059 2,942Of which Norway 2,664 2,563

Operating profit 1) 166 135Of which Norway 181 182

Operating margin, % 5.4 4.6Of which Norway 6.8 7.1

Number of available building rights 8,200 7,500Number of residential units in current production 1,303 1,1241) Of which property sales 39 3

JM Property Development

2015-10-21 │ ytf20 │

• Project with 97 rental units in the Dalénum area, Lidingö, ongoing

• Project with 187 rental units in Stureby, Stockholm, ongoing

• Production of special housing for the elderlywith 54 residential units in Sollentuna, ongoing

• 338 rental units and residential care units in current production

January - December SEK m 2015 2014

Revenue 206 401

Operating profit 1) 38 51

Number of available building rights 600 600Number of residential units in current production 338 4301) Of which property sales 17 12

JM Construction

2015-10-21 │ ytf21 │

January - December SEK m 2015 2014

Revenue 1) 2,084 2,456

Operating profit 45 81

Operating margin, % 2.2 3.3

1) Of which internal 453 386

• Good demand

• Solid orders

• Decreased revenue – gradually downsizing of co-generation plant

• Lower profit and margin

• Operating profit burdened by revaluation in two projects in Q4

Available building rights portfolio

2015-10-21 │ ytf22 │

1) Rounded to the nearest hundred2) Of which 600 building rights for rental units and residential care units3) West region4) East region

No. of building rights 1)

Region 12/31/2015 12/31/2014Stockholm 13,000 2) 12,500 2)

Malmö/Lund 3,300 3,800

Gothenburg 3) 3,000 2,400

Uppsala 4) 3,600 3,200

Norway 5,900 5,600

Copenhagen - 700

Helsinki 2,100 1,000

Belgium 200 200

Total approximately 31,100 29,400

SEK m 2012 2013 2014 2015Opening balance 5,816 5,769 5,988 6,802

Plus 1,259 1,274 2,273 2,695

Minus -1,306 -1,055 -1,459 -2,430

Closing balance 5,769 5,988 6,802 7,067

Somewhat higher level of development properties Building rights in Balance Sheet

2015-10-21 │ ytf23 │

Approx. 5 years production in Balance Sheet

2015-10-21 │ ytf24 │

1) Residential building rights2) Guideline value 5 years3)

No. of building rights 1)

12/31/2015In Balance

SheetHousing

starts 2)Average

period, years 2)

JM Residential Stockholm 8,700 1,667 5.2

JM Residential Sweden 5,200 1,228 4.2

JM International 4,100 782 5.2

JM Property Development 100 54 -

Group 18,100 3,731 4.9

Valuation development properties 12/31/2015

2016-02-04 │ Delår_prognos // ytf25 │

SEK billionMarket

valueCarrying amount

Surplus value2015

Surplus value2014

JM Residential Stockholm 7.3 4.5 2.8 1.6

JM Residential Sweden 2.1 1.3 0.8 0.6

JM International 1.8 1.2 0.6 0.6

Total 11.2 7.0 4.2 2.8

71 unsold residential units in the Balance Sheet, SEK 235m

2015-10-21 │ ytf26 │

243

318292

229 235

0

100

200

300

400

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

SEK m

Cash flow

2015-10-21 │ ytf27 │

Cash flow statement, SEK m Q4

2014Q1

2015Q2

2015Q3

2015Q4

2015From operating activities 1) 2) 339 -273 659 -193 -423

From investing activities -6 -2 -5 -2 -2

From financing activities -61 -73 -841 -131 143

Total cash flow for the quarter 272 -348 -187 -326 -282Cash and cash equivalentsend of period 2,424 2,077 1,887 1,557 1,2751) Of which net investment

project properties -18 -24 -42 -48 -542) Of which net investment

development properties 208 -727 321 108 -604

Strong financial position and liquidity

• Equity/Assets ratio 38 percent (37)

• Available liquidity was SEK 3,575m (5,224) of which cash and cash equivalents SEK 1,275m (2,424)

• Unutilized overdraft facilities and credit lines SEK 2,300m (2,800)

• Credit lines of SEK 2,400m have an average maturity of 1.7 years (1.5)

• Buy-back of own shares for SEK 125m during the fourth quarter

1 198

-1

-0,5

0

0,5

1

1,5

-1 000

-500

0

500

1 000

1 500

2011 2012 2013 2014 2015

Net interest-bearing liability(+)/receivable(-)Debt/equity ratio

2015-10-21 │ ytf28 │

SEK m times

1) Non interest-bearing deferred payments for property acquisitions amounted to SEK 509m (1,248)

1)

Net interest-bearing liability(+)/receivable(-)

Net financial items

2015-10-21 │ ytf29 │

1) Refers to claims on JM International

January - December SEK m 2015 2014Financial income 9 18

Revaluation/currency hedging 1) 2 9Financial income 11 27Interest expenses -49 -55

Revaluation/currency hedging 1) -2 -9

Interest expense pensions -32 -38Financial expenses -83 -102

Net financial items -72 -75

Components of profit/loss – housing business Percentage of completion method (gross) Q4 2015 (Q3 2015)

2015-10-21 │ ytf30 │

Cost-based effectSEK 289m (252)

Revaluation effect SEK 324m (223)

Sales effectSEK 19m (20)+ +

=Profit/loss

for the periodSEK 632m (495)

Recognized expenses ×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

Revaluation effects – housing business

2015-10-21 │ ytf31 │

SEK m Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Group 424 241 273 223 324

The net of positive and negative revaluation effects in residential projects during Q4 2015 totaled SEK 324m, which indicates a continued stable assessment

of market conditions for the actual forecast period.

Business segment Stockholm SwedenInterna-

tional TotalQ3 2015 171 43 9 223

Q4 2015 197 94 33 324

• Customer focused – strong brand

• 31,100 building rights in attractive locations

• Fundamentally favorable prospects

• Sustainable urban planning

• Efficient management system

• Strong balance sheet – focus on cash flow

• Well balanced risk profile

• Skills development prioritized

JM today

2015-10-21 │ ytf32 │