JM AB (publ)

Hello, and welcome to the presentation of JM's quarterly report for the first quarter of 2026. The uncertain environment continues to affect the housing market. During the first quarter, the war in Iran further sped up the uncertainty. This makes it difficult to predict where the housing market will go in the future. At the same time, we see that the underlying conditions are relatively good on our markets. We have relatively low inflation, low interest rates, and in Sweden we see that the available income has increased significantly with the households. We also see that we have a housing shortage or a need for housing on all our markets. In Sweden, we have also received new amortization rules on April 1, which further strengthen the improved conditions for the market. We also see rising housing prices in Sweden during the first quarter. In an uncertain environment, it is difficult to predict how things will turn out. But at JM, we work tirelessly with our strategy and our strategic orientation. That is to say, we work with what we can influence in this world. And that means that we take measures to be strong now and in the future. That is to say, continuously improving our competitiveness. And we see that this work gives results. In the first quarter, sales were significantly higher than in the previous quarter and the previous year. We also have clearly improved results. We increase our sales in ongoing production. At the same time, we are also clearly reducing the unsold and pre-settled housing, not least the unsold and pre-settled housing in the balance sheet, which has decreased from 393 housing at the turn of the year to 314 at the beginning of the quarter. Our work with standardization and efficiency also has an effect. We see that we have shortened our lead times in production by 30% in a few years. This is extremely important and good. We also have a strategic initiative called the productivity lift, where we have so far identified more than 100,000 kronor in savings per produced apartment. that we introduce in our structural capital and that will give an effect in the future. And we continue to continually find more cost savings, which is also very good. We are also continuously working to optimize our building rights portfolio, with the goal of increasing capital turnover and ensuring that we have buildable building rights when it turns, successively. During the quarter, we have implemented many measures on the subject of doing what we can influence. And a few milestones for us during the quarter are, for example, on the subject of optimizing the construction portfolio, that we have sold part of a property in Stockholm, in Lövholmen, where we have seen that it is a long time to potential production start and we have fine overvalues. In connection with that, we have also bought a property in Nacka with a low-powering detail plan and potential construction start already next year. We have also made one of the largest acquisitions in GIMS history, when we bought a business in Norway with 1,300 buildings and 300 homes in ongoing production. This acquisition contributes both to securing future production starts, but it also contributes to profitability and turnover already from and with this year. In Finland, we have started a collaboration with Ice Capital, a fund, and we have sold two projects to that fund initially. This ensures profitability and production starts in Finland, which is exciting, and we have an ambition to sell more projects to Ice Capital. We have also completed the implementation of the business in Stockholm. and landed the new organization in Stockholm. And that means that from now on this quarter we have one business unit in Stockholm, which we are also preparing, one business unit in Stockholm. We also have fewer regions in Stockholm and we have reduced the staff. We have hired a new business manager in Stockholm called Henrik Brinklandelius. He has considerable experience in the industry and he contributes both to Stockholm and to the success of the company. Already initially, but hopefully even more in the future. At the end of the quarter, the departure of our external entrepreneurship business in JM Entrepreneurship became clear. This means that we release a business that has had challenges with profitability for many years and that we at JM can fully focus on our core business, that is to say, build housing projects and housing areas, develop and build housing projects and housing areas with resources throughout all stages. including our own craftsmen. During the quarter, we have also renewed our financing and signed a contract for a syndicated credit facility of 4.2 billion SEK. This ensures flexibility and stability in the future. And not least, we continue to complete many nice projects. During 2025, we completed 30 projects. And one of those projects is the project on this picture, DOCS, the new landmark in Malmö. During the first quarter, we were happily nominated for the building of the year for DOCS. An incredibly nice project. And on the subject of being proud of things, we also found out in the first quarter that we have the most satisfied customers in Sweden. In the annual satisfied customer index competition in Sweden, JM won. For the past year, we have the most satisfied customers. We also have a very high value in Norway and Finland. So in summary, we have the most satisfied customers in the Nordic countries, which is fantastic. And that is a quota of both our quality in what we deliver, but also our reliability at JM. So this is a quarter, I think, with many measures and milestones to be proud of, which shows that our work is of great use. If we go over to the report in the same direction, we see that we increase the sales significantly. We also increase the result clearly. We also increase housing in ongoing production, even though we temporarily in this quarter start a little less housing than we did in the corresponding quarter last year. The revenues increased partly due to the acquisition in Norway, but also due to higher employment in Riks in the ongoing project. The turnover increased significantly to over SEK 200 million. This is partly due to the deal we did in Stockholm, which is positive, but also due to the Norwegian deal, which already in this quarter contributes positively to the result. The cash flow is also significantly better, which is exciting, and this is mainly due to the fact that we are selling off unsold, ready-made housing in a rapid pace. If we look at the price development in our countries, we have seen an increasing price development in Sweden during this quarter. In Norway, the prices are rising well in the mountains above all, which is exciting because we are positioned there. In Oslo, however, the price development is relatively stable and not as strong as in the mountains. And in Finland, the price development is stable or even still weak. Sales are increasing, mainly in Stockholm and Finland, which contributes to increasing sales. We increase sales to consumers compared to the strong first quarter last year, which is positive, but above all we increase sales to investors in this quarter. The production starts are less this quarter than the previous year, but it is temporary and we are still working towards and planning for more production starts in 2026 than in 2025. That is to say more production starts than what we have done in the last three years. The goal is still to reach the 3,800 starts per year from and with 2028 as it looks for us now. Bostäder i pågående produktion ökar också närmast 5000 igen vilket är positivt och inte minst så ökar vi säljgraden i pågående produktion till 60% nu. Det är i övre delen av normalspannet och det är faktiskt bara en gång sedan 2022 som vi har legat på den här fina säljgraden. Den fina säljgraden tillsammans med att vi säljer bort osålda färdigställda bostäder, det båda har också gått för kommande produktionsstarter. Byggrättsportföljen är fortsatt attraktiv. Vi har under kvartalet gjort det stora förvärvet i Norge, som har adderat byggrätter i Norge, efter att vi flera år har varit försiktiga med förvärv i Norge, för att vi har bedömt att prisbilden har varit hög där. If you look at the turnover in our projects, it is relatively stable, but still high. Mainly during this quarter, we have bought in Norway, but we have been active both with sales and acquisitions. The business in Stockholm is one where we both sell and acquire, and it will improve the turnover of that type of business. We have also seen good investment opportunities in Finland for low values or land values, right land values. We expect the period to decrease as we start more homes in the future. I will now hand it over to you Tobias.

Thank you Mikael. We have presented a number of projects during the quarter with unsold homes and the total number of unsold homes increased marginally compared to the year shift. But at the same time, we see that we are quickly reducing our stock of unsold housing, and we are now on the way down to our desired level of between 200 and 300 homes in the balance sheet. It was also still Stockholm that had the most homes in the balance sheet, but that was also where we saw the biggest decrease. As long as this trend remains, we see no reason for further price drops in a larger extent. We must also remember that the margin in this warehouse is low, and it will hold back the margin for the greater part of 2026. The cash flow from the ongoing business was positive in the quarter, and there was a strong improvement compared to previous years. This is much thanks to the fact that the warehouse of unsold housing in the balance accounting decreased. In comparison with the quarter last year, the balance increased, and we saw a very large effect on that order. We also received a positive cash flow from our sales of the rental rights project. And we now have three quarters in a row, a positive cash flow. And on the 12th, the cash flow is over 600 million plus. As Mikael mentioned, we have signed a syndicated credit agreement this quarter of 4.2 billion kronor. This replaces the previous bilateral agreements, which went up to 2.8 billion kronor. This also increases the available liquidity in JM. The contract is signed over three years, with the possibility of extension of one plus one year, and the conditions are actually a little better than what we had before. This gives us increased flexibility and financial strength, which is good to have in these uncertain times. And it also shows our good position that we have with the Nordic banks, and through such a contract we strengthen the relations even more. Net loan debt increased in the quarter through the acquisition in Norway, where a large part of the land was financed with interest-bearing reversals to the seller. And the solidity in JM is still over 50%. If we then look at the various components in the successive profit calculation, we can note that the cost-based effect was positive and somewhat better than in previous years, thanks to high employment, especially in Norway and in Riks. The evaluation effect was significantly better compared to previous years. If we double-click on it and look at the business identity, we can see that there was an improvement in all business identities in this quarter. This also shows that the underlying result in our business is on the way to be improved, which will be able to give increased margins in the long term. And the sales effect was slightly positive this quarter, which means that we have sold a little more than what we have worked on during the quarter. And with that, I turn it back to you, Mikael. Thank you very much.

If we go over to the different business units and start with Stockholm, we see that we increase the sales and started quite clearly, which is exciting. At the same time, we see that the uncertainty in the environment suppresses the customers' willingness to sign contracts early in our projects. The income in Stockholm is in line with the previous year, but the result is clearly increasing. Not least because of the deal we did when we sold part of Lövholmen. But we also see that the margin is on the way up in the project in the underlying. However, it takes time before it gets the full picture in our figures. We also see that we still have big challenges in Sweden and Stockholm, not least with the detailed planning processes. They are too slow, so it is not only the market that is limiting for increased housing construction, but we also see that there are slow detailed planning processes that are limiting in the highest degree to get started with housing construction. And because of that, we are a little more happy that we managed to get to the ground with a potential construction start in the near future, like the one we did in Nacka, Älta, which we aim to start in 2027. We have been active during the quarter and, among other things, sold a property in Vässjön, which is in ongoing production, which is positive. And we have started two projects. Among other things, this project, Vide, in Österåker, in a very nice location. Maybe the best location in Österåker is in Östersjärn, which is a very attractive part of the city. If we go over to Riks, then we sold more in Riks than the strong first quarter last year. However, we started less in Riks at the time. Income, results and marginals increased in Riks and we started, among other things, these 23 small houses in Tölö in Kungsbacka outside of Gothenburg. Moving on to Norway, we see that in the new production market, both sales and start-ups are still at historically low levels. Even in Norway, there are challenges with the planning processes, which both make the construction more expensive and make it harder to get started in the pace that is desired in Norway. JM, we reduce our sales and start in Norway. At the same time, we increase the revenue and the result this quarter, and the margins are in line with previous years. We are again happy with the fine acquisition we made during the quarter, and not least are we happy that we have acquired land in Bergen, which has had a very good price development, and where we believe a lot in Bergen's development in the future as well. So there we have increased the building rights portfolio and ongoing projects in Bergen. We also started the first project from that portfolio and that is the first stage in Tamburparken in Ås, just south of Oslo, which we started at the end of the quarter. The Finnish market is still very dependent, with a large supply and a weak price development, as I said earlier. J&M increased sales this quarter, mainly because we sold two projects to Ice Capital, and we intend to sell more projects to Ice Capital in the future. But we also see that we are actually increasing sales to consumers compared to previous years, but this is still at low levels. Starts, income and results are in line with previous years, but the moving margins increased somewhat. We started one of the projects that we sold to Lice Capital. It started with 128 homes in Espoo. Vi fortsätter oförtrutet vårt arbete med att minska koldioxidutsläppen. För att lyckas med att göra det fullt ut så följer vi också utvecklingen inom hållbarhetsområdet nära. Vi är också beredda att investera ibland i bolag som kan bidra till minskade koldioxidutsläpp. During the first quarter, we invested in a company called Nanoplum. Nanoplum manufactures extremely thin insulation. It is based on a technique used by NASA in the USA. This insulation can contribute to thinner wall constructions. This means lower material efficiency and reduced carbon dioxide emissions. We are the first building company in the north to test this insulation in our constructions. In addition to the fact that it is good for the environment, we also assess that we will be able to add more residential area since we have thinner walls. And it can be as much residential area as a whole apartment in a larger apartment project. To summarize, we have the most satisfied customers in the Nordic region, which we are very happy about. We also have a strong brand, and despite the fact that there are slow detailed planning processes, we have a very attractive construction portfolio with many projects in good condition that we expect to implement in the future. We also have a well-measured risk profile with a balanced sales rate in ongoing production. We reduce the number of unsold in the balance sheet and we have also landed a renewed financing for the company. Vi fokuserar på det vi kan påverka genom att jobba i enlighet med vår strategiska inriktning och med våra strategiska initiativ som ska bidra till att vi förbättrar oss. Vi ser att vårt arbete med standardisering och effektivisering ger effekt. We have managed to shorten our lead times and we are lowering production costs. So we have competitive production costs, which among other things also shows that we take market share in several areas or several places where we are active. And finally, even if we live in an uncertain environment, and there is a lot of uncertainty out there, we can have a careful optimism in the housing market. It is difficult to predict the future, and that is why we at GIMP choose to continue to focus on what we can influence, to implement measures that make us stronger here and now and in the future, that is, to become as competitive as possible. And then we will be well positioned when it turns in the market also successively. And I promise you, investors and owners, that I and all employees at JM do everything to strengthen profitability and competitiveness. And I want to take this opportunity to thank all employees at JM who fight daily to succeed in this. Ladies and gentlemen, we will now begin the question and answer session.

Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. One moment for the first question, please. And the first question comes from from SEB. Please go ahead.

Good morning. I have a few questions. The first is about Stockholm. Exclusively, you have a margin of 3.6%. Can you give us some details on how much of the turnover is due to the sale to Folksam?

I can start. The majority of the turnover is due to the sale of Lövholmen to Wallenstam. That's the majority of the turnover. We've also made a sale to Folksam, which contributes to the whole thing. But the underlying margins are also improved and contribute positively compared to the previous year, even if it doesn't go through fully. You can complete that.

We will not leave comments on individual projects. The project that was sold to Folksam contributes, of course, but the margin of the other projects also increases. So it's not just the Folksam business that makes a good impact in the quarter.

Okay, and then the second question is also related to the population, and it has to do with this acquisition in Norway. When you raise it, you get a part of the revenue, but the margin does not change compared to last year. You have previously mentioned that these projects have a underlying population that is quite good. I think, in the future, how do you think the margin will be affected in Norway after this acquisition?

Yes, we don't release the forecast fully, but of course we have made a contract that will be able to contribute to higher profitability in Norway, and not least in absolute terms. Then, when it goes through with the margin, we will also see. But we buy in projects with better margins than what we were able to show a few years ago, when it was tougher.

Okay, and then I also have a question regarding the cancellation of the entrepreneurship business in the sense that it will be cancelled Från första pill och då tänker jag bara hur det förväntas påverka övriga intäkter och övriga kostnader med tanke på att ni hade ändå ganska betydande ebitförluster då i Q1 som jag antar är delvis hänförligt till entreprenadverksamheten. Ska man kunna få någon detalj kring det?

Yes, it has cost us a little bit, but in the future, we see that we previously had about half a billion in revenue. It will gradually decrease as there are still projects that remain in the name of JM that will have a certain volume during this year. But from now on, we do not expect any major results from the previous JM entrepreneurship.

I have one last question regarding Finansnettet. You mentioned that you have introduced the new financing and the financing costs are part of Q4. In the future, what can you think of as a normalized financing cost, quarterly, and do you think that there might be some one-time payments in Finansnettet that are possibly linked to this?

There are no bigger one-off positions in the financial network. What we can see in the future is that the credit facility itself will have slightly better conditions than before. But at the same time, the acquisition in Norway also has a sales reverse that is with Norwegian interest rates that will contribute negatively to the financial network in the future.

Okay.

As a reminder, anyone who wishes to ask a question may press star and one at this time. So it looks like there are no further questions at this time, so I would like to turn the conference back over to Mikael Aslund for any closing remarks.

Then Tobias and I thank you for us and hope that you all have a nice day. Thank you very much.