JM AB (publ)

...presentation of JM's book signing communiqué for the whole year and the fourth quarter of 2024. 2024 was probably the year when the housing market reached the bottom of this cycle. Now there are positive winds blowing on all our markets, even if we see that the recovery will take a little different time. We will happily show in our report now that our strong building rights portfolio combined with Attractive projects in attractive locations and competitive production costs have made that we have increased sales significantly during 2024. We have increased it by 46%. This has also led to us being able to increase production starts significantly. They have increased by 39% during the year. So that is very positive. But the challenges remain. The industry and J&M have struggled with lower housing prices than when they were the highest, higher production costs, and this has pressed the margins and the results during the year. This pressure will also affect the results and margins in the coming years. We complete projects with given conditions, and we have a project mix that contains lower margins on average in what is currently in operation and delivering results, than what it was before the conjecture entered its bottom. With that said, the underlying long-term market conditions are still good, and we see a surplus of housing on all of our markets. We at JM do not expect that the 30% increase in costs that we have seen will go down with interest rates and after the market recovers. Instead, we take a business responsibility to work with reducing production costs and also short lead times. JM's market-leading position in this growing market that we now see, makes me see the future positively. And that feels good. Från dessa övergripande stora drag så går vi in på detaljerna i vår rapport. The revenue during the year decreased to about 12.5 billion SEK, due to the fact that we have more finished housing and also declining project volumes. We see that the movement result and the movement margin are also lower here due to the fact that a larger number of projects now have lower housing prices and a higher cost picture. As I said at the beginning, it is very happy that we have managed to sell more homes during the year. Partly because we have an attractive offer to customers, which is central to us to always deliver, but also our competitive production costs that create that opportunity. We also see that customers are starting to return to the new production market, which is positive. So we have increased sales with about 900 units during the year. We have also increased production starts with about 600 units, which is very good. Unfortunately, the housing prices are decreasing in ongoing production. They are now down to about 4,600 due to the fact that we start less than what is finished. We see that we still have a strong building rights portfolio of 37 400 building rights today. The market value of our operating assets is now 12.9 billion and there is a surplus of 5.2 billion. The board now suggests an increased allocation to 3.25 kronor. As before, 71% of our business is located in Sweden, and our staff consists of just under 2,000 employees. The recovery has, as I said, begun. Housing is starting to look more positive in the future due to the fact that in several places, in two of our countries, we have seen a decline in inflation and a decline in interest rates. In Norway, inflation has also begun to decline at the end of the year, and we hope for the first interest rates to drop at the beginning of this year. We also see a greater optimism due to the fact that it will be an easy tax cut for consumers in Sweden. So the available income, it is estimated, will increase and has started to increase, which is good. This of course leads to increased prices on basically all of our markets. Even Helsingfors, which has had a slightly slower price development, has increased at the end of the year. However, in some micro markets and some areas within the markets, it is still tough. In some areas, we have not seen price increases. We also want to point out that even if we see price increases, in all our markets, including Norway, the prices are significantly below the top levels. During quarter four of 2024, we sold a little less than the previous year in comparison to the quarter. This is due to the fact that in the quarter four of the previous year, we sold to several investors, especially in Finland, but also in Norway. And what is exciting here in quarter four this year is that we have sold significantly more to consumers. We have sold 441 apartments to consumers this year, which is an increase of more than 100 units. So it's a much more positive picture when it comes to sales to consumers. When we look at the whole year, we sell more on all our markets, exclusively in Norway, which sells a little worse. Production starts are in line with previous years. And production starts, if you look at the whole year, there are significantly more production starts, which is positive. And it is also on all markets, exclusively in Norway, that start a little fewer homes. The number of homes in ongoing production has dropped, as I said. It's about 4,600 now, due to completed projects. The joy is that we are at 59 percent of the total number of homes booked and sold in ongoing production now. A year ago, we were at 54 percent. And in those 59 percent, there is a project called Hymns rights, which we started in quarter four. It is a project called Bovetet, which is located in Järfälla. We have started that project in our own balance sheet- and subtracted these figures by about 3%. So apart from that project, we are actually within our normal range now- in terms of booked and sold in ongoing production. If we go into the details in the various business networks- and start with JM Bostad Stockholm. The joy in the fourth quarter at JM Bostad Stockholm is that we have- We started a project in Södermalm called Passionsfrukten. Södermalm is one of Sweden's healthiest areas to live in- according to a study done last year. It's close to the green areas, close to all hand services- so I think it's a fantastic example of a good project in an attractive area- where we also see that customers have really come back and want to move there. It is almost an area that I could think of moving to. If you go over to Stockholm in general, there are many positive signals in the form of the income and the result increasing compared to quarter four 2023. We see that the customers' increasing optimism, as I mentioned earlier, about their household economy has led to them being more willing to sign contracts in the early stages. All this has also led to increased sales and increased production starts. It's a doubling of several of those figures, or even more. So it's moving very forward in Stockholm. Stockholm's result in quarter four is due to declines in three projects- in Stockholm's outer area, where we haven't seen the same price development- as we see in other areas. A positive thing about Södermalm is also that we have managed to acquire a project in Rindö in Vaxholms kommun with a powerful detailed plan that we plan to start within two years. If we go over to JM Bostad Riks, we see lower revenue in quarter four compared to the comparison quarter, but increased results and increased margin. This is due to the fact that we do not have any declines this year. We see that we have sold a little less in quarter four, but just like for Stockholm, we see that customers show greater willingness to sign early in the project. We have started more projects in quarter four. That is positive. And throughout the year 2024, we have also started and sold significantly more housing in the Riks. We have also managed to acquire projects in the Riks, including in Lund and Örebro. And during quarter four, we have, among other things, started production of a project in Kungahälla in Kungälv. It is a property ownership project. And property ownership we see as a good complement to the more common form of housing rights. And we see that customers are really asking for this form of permission. So a nice project in a nice area with a form of permission that is sought after. If we go over to Norway, the new production market in Norway has had it a little heavier. It is still in the process and mainly due to the higher inflation pressure and cost pressure areas in Norway. There have not been any interest cuts, but the first interest cuts will probably come in the spring of 2025. The income and the result is somewhat lower than the previous year due to lower production volumes. We also have a lower number sold compared to the previous year due to the fact that we sold one project to investors last year. Sales to consumers and demand for JM's housing, on the other hand, are in line with previous years, which is positive and joyful in Norway. This, together with the expected interest rates, both are good for the future in Norway. In Norway, we have not started any projects in quarter four. If we move on to Finland, perhaps it is the market that has had the toughest price development. There we see that activity has increased in the housing market and the new production market in Helsinki, which is very exciting. We also see that we have a strong increase in sales to consumers in our business in Finland. In and of itself from low levels, but it is a clear signal for improvement. The sales to investors increased throughout the year, in 2024, compared to last year, even though it was slightly lower in the fourth quarter. We have lower revenues and results in quarter four because we have fewer homes in ongoing production, and we have also been forced to make single price adjustments in projects in Finland that are close to the end. Throughout the year, the starts are close to what they were last year, and sales are better in Finland. Vi är också glada i Finland att vi har lyckats förvärva över tusen byggrätter i Espoo och i Helsingfors och vi har produktionsstartat vårt första projekt i Tammerfors i Teso Majärvi. Mycket fint projekt i en ort som vi vill gå in i framåt och även ha fler kommande projekt som vi ska starta. Tammerfors är ju Nordens största insjöstad så det känns som en viktig marknad för oss långsiktigt. In JN Fastighetsutveckling, we provide higher income, higher results and better margins, both in the quarter and throughout the year. In quarter four, we handed over three projects to investors. Our first multi-housing in Trä in Igilstad, our care and care home in Pilhamn in Värmdö, and the office project K1 Karlberg Strand, which we will hand over to the Fortification Agency in December. During the quarter, we have started a property rights project, Bovetet, in Söderdalen. 205 apartments in a nice area. We have chosen to start that project in our own balance account, as I mentioned earlier. We see that we have an improved cash flow due to the withholding of liquefied goods from the shareholders. And we now have one project within the unit that is continuously providing income and results. At JM, we have a continuous attractive building rights portfolio. It now has 37 400 building rights. And even if we are restrictive about new acquisitions, we are prepared to acquire when the business is right. When the project idea, when the project price for the building rights is right, then we are ready to buy. And we have acquired building rights during the year. I have described some examples. And the joy here is also to see that we have even increased the number of building rights in Finland during the year. So now we have more than 7,000 building rights in Finland. Then I hand over to Tobias. Thank you very much.

I thought we would go a little deeper into our financial status and we started by looking at the construction portfolio. We have continued to purchase during the quarter, but at the same time we have started more so that we see that the balance has dropped somewhat in this quarter. We have about 22,000 building rights in the balance and with a production rate of 2,200 per year, it gives a turnover time of almost 10 years. But we see that as we will continue to start more, we will soon reach our target value of 5 to 6 years. We have, as usual, made a market assessment of our portfolio. It shows a still large surplus value. We have 5.2 billion in surplus value. That corresponds to about 65% of the total value. And you can see that the surplus value is still high even in Stockholm. As you may have noticed, we have a high level of unsold housing in the balance calculation and also a high level in total. This is due to the fact that most customers must continue to sell their existing housing before they can buy a new one. This means that we get more sales right before or right after the finalization, which also means that we naturally get a higher balance of finished and unsold. But in the fourth quarter, we also had a lot of finishes that made this balance go up. But you have to remember that it is quite good from a sales point of view to have a warehouse to sell from, where customers can move in in the near future. We of course monitor this balance carefully so that we do not build a warehouse, so that we see that we have a good sales capacity forward. We have a lower cash flow in the quarter compared to the strong Q4 last year. And we gain more capital when the number of finished projects increases and the projects take longer. We have had a lower sales in the ongoing production and we cannot end the project in the same extent as before. Then we have also had payments for land acquisition during the quarter, where we actually had an inflow last year. We have also left over project K1 in the fourth quarter and it is not fully finalized, so we still have some funding left in that project. But even though we had a negative cash flow in the fourth quarter, we have 3.3 billion in available liquidity. And this good liquidity means that we can remain with a stock of ready-made housing. The net income has increased to 2.3 billion. This is mostly due to the fact that the cash was lower, while the interest-bearing debt has actually decreased since last year. And we have continued to have large, useless credit agreements and cheque credits. Then if we look a little deeper at the various parts of the successive profit calculation, we see that we have a somewhat improved cost-based effect in this quarter compared to Q3. But if you compare it to what it was a year ago, you can see the effects of the much lower volumes that we have now. The cost-based effect is the upgraded costs during the quarter times the margin we had at the start of the quarter. If we then make changes in the forecast, they will come under the revaluation effect. And there we see that it is also positive, especially because we did not have to make as many price adjustments as we did in the previous year or in Q3. And we have a positive sales effect thanks to the good sales in the quarter. If we look at the price adjustment effect in Stockholm last year in Q4, which we haven't seen this year, we had small price adjustments in Finland this quarter, but overall we have a much more positive price adjustment effect in Q4. Back to you, Mikael.

Thanks, Tobias. JM has always worked to strive to be very good when it comes to sustainability. We want to be market leaders when it comes to sustainability. And above all, it is important to work continuously to reduce climate emissions. Climate emissions are one of our time's greatest issues for the world. And there we take a strong position, we assess at JM. Not least for the construction industry, concrete is an emissions boom. And we put a lot of effort into reducing emissions from concrete from our business. It is very happy this year that we as the first Nordic construction companies have received the Svanen license according to the new generation. The Svanen license sets very high requirements for the living environment, environmental impact and energy use, so it is a credit that our work is in the right direction with these issues. And I am also proud and happy that we are ranked as one of the most sustainable companies in 2024 in the ranking that has been taken on a number of listed companies. So it's really fun and proud for all of us at JM. JM also has a strong customer focus. In addition to being a market leader in sustainability, we will offer the best customer service in the market. We have 37,400 construction sites in attractive locations. That's a good reason. In addition to that, our structured way of working, where we long-term work with improving products, improving processes, work together with suppliers to refine methods. This makes it possible to deliver the best customer service at the same time as we do it to a competitive production cost. All this, together with the fact that customers are starting to return to the market in greater scope, has led to us starting significantly more in 2024 and is now on the right track towards our target of 3,800 starts per year. But we can't really put the challenges of the past years behind us yet. The lower housing prices that we are in, together with the high cost picture, continue to press the margins for a while to come. Therefore, it is very important for us to become even more efficient and competitive. This will be a major focus for me and for all of us at JM in 2025. During the year, as you have heard, we have sold several projects to investors. This has enabled us to start a project in our own balance sheet. And even if we have more apartments now in the balance sheet, we still have a very high percentage sold. This, together with the good liquidity that the company has, makes us feel that we have a well-measured risk profile. And this year, JM has been around for 80 years and has worked in the Nordic countries. It is enormously inspiring for me to be a part of a company that has developed and built society for 80 years. I look forward to continuing to be a part of it. And again, despite the fact that results and margins are being pressured, and will be pressured, also in the coming years, our position is strong. with for example our structural capital, we have competent and committed employees, we have a good liquidity, we have a fantastic building rights portfolio. All this gives us good long-term conditions. We also see that the underlying market conditions with a surplus of housing on all our markets, We will now begin the question and answer session.