JM AB (publ)

Good morning and welcome to the presentation of JM's quarterly report for the first quarter of 2025.

Welcome. We will start with a brief summary. Then we will go through the report briefly and as usual there is a chance to ask questions at the end.

J.M. has started the year with an increased number of sold homes and an increased number of production starts. This despite the fact that there has been a geopolitical uncertainty during the quarter that has had a dampening effect on the housing market. This geopolitical uncertainty has increased during April and it is difficult today to predict exactly what consequences this will have for the housing market. What we see, however, is that uncertainty may lead to customers and investors being a little more careful in their decisions. This may tend to have a dampening effect on the recovery in the housing market that we are currently in. This, together with the fact that we also have a generally higher cost level, means that the industry and J&M will have to live with somewhat pressured margins for a longer period. At the same time, we see that the underlying factors are still good. We have a housing deficit on all of our markets. We have real wage increases this year. We see that the interest rate is slightly lower. And hopefully we will also get eased amortization rules in Sweden this year. In addition, continued price increases are forecast. So all in all, it speaks for a good market in the long run. We at JM follow the market development closely and we constantly monitor that we have a balance in sales and production starts to successfully reach our target of 3800 production starts per year. We hope and believe that the market will recover, but we do not trust that it will happen. Our focus and our work focuses on what we can influence. And what we can influence is that we have a great customer service, while we improve our efficiency and lower our costs. For example, we see that our intensified work to shorten our lead times in recent years has led to that all of our projects today have 20-30% shorter lead times than what we had a few years ago. This leads to lower financing costs, it leads to lower costs and it also leads to that customers get the opportunity to move closer to the time they sign the contract. So even if today feels uncertain in the world around us, I look forward to the future. Therefore, I would like to move on to the report. As I mentioned, we have increased the number of sold homes by 70 compared to the previous year. And we have significantly increased the number of production starts compared to the previous year. Over 400 more production starts this year. Despite this, we have a lower number of homes in ongoing production. There are 4,511 homes in ongoing production now. Our work to reduce the cost is now fully completed. So today we have 1,860 employees at JM. We see that the revenues have decreased due to the fact that we have a lower number of homes in production. The result also decreased somewhat in the quarter compared to the previous year, mainly due to lower results in JM Norway. In Norway, in the previous year's quarter 1, we had a sale in Gessheim that contributed positively to the result. Apart from that sale, we have a better result this year. The happy result is that the result in Stockholm has increased significantly this year compared to the previous year. We also see that the cash flow is improved compared to 2023, mainly thanks to the fact that we have a lower amount of moving capital in our upcoming projects. This is partly counteracted by purchased apartments in the balance account. The housing prices on the second-hand market in Sweden have been stable, or weakly increasing on some markets. In Norway, prices have increased more, or quite clearly during the first quarter, while in Finland we have had a weak, or rather a weakly decreasing price development. As I said, sales have been better, and it is mainly Norway and Stockholm that contribute to increased sales. And production has increased significantly as you can see, both compared to 2024 but also compared to 2023. We have fewer homes in ongoing production, and this is due to the fact that we end projects with more projects with more homes than what we have started, even though we increase the number of startups. Hopefully, in the long run, this will start to go up again. And we have a decreasing percentage booked and sold in ongoing production. So it is now at 0.56, just below our normal threshold of 60 to 65 percent. Here is our gold, I was about to say. It is our building rights portfolio with 37,100 building rights in attractive conditions. We continue to look at potential acquisitions and during the first quarter we are for example happy that we have bought 450 building rights in Espoo in Finland. Therefore, I was going to hand it over to you, Tobias.