Interim Report January – June 2016July 15, 2016

JM Group

2016-07-15 │ ytf2 │

Revenue: SEK 14.5 billion 1)

Total assets: SEK 12.0 billion

No. of building rights: 30,400

No. of employees: 2,354

Market Cap: SEK 15.7 billion 2)

Norway Sweden

Belgium

Finland

1) 12-month period2) SEK 217 per share

19 % 2 %

0 %

79 %

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

2011 2012 2013 2014 2015 Q2 2016

Operating profit Operating margin

• Revenue increased toSEK 7,727m (7,233)

• Operating profit increased toSEK 893m (771)

• Operating margin increased to 11.6 percent (10.7)

• Gains from property sales SEK -23m (34)

Group Summary January – June 2016

2016-07-15 │ ytf3 │

According to segment reporting%SEK m

1) 12-month period

1)

Group Summary January – June 2016

According to IFRIC 15

• Revenue increased to SEK 7,336m (6,785)

• Operating profit increased toSEK 824m (722)

• Profit before tax increased toSEK 801m (691)

• Earnings per share increased toSEK 8.40 (7.00)

• Return on equity was 27.5 percent (28.8)

2016-07-15 │ ytf4 │

• Number of residential units sold 1,958 (1,940)

• Number of housing starts 1,772 (1,777)

• Cash flow from operations was SEK 1,478m (386)

• Building rights portfolio was 30,400 (27,900)

Group Summary January – June 2016

2016-07-15 │ ytf5 │

Operating profit according to IFRIC 15

2016-07-15 │ ytf6 │

January - JuneOperating profit, SEK m 2016 2015JM Residential Stockholm 600 531JM Residential Sweden 219 138JM International 74 80JM Property Development 5 15JM Construction 21 32Group-wide expenses -26 -25Total as stated in segment reporting 893 771Restatement JM International 1) -69 -49Total 824 7221) Effect of restatement on revenue and profit and loss according to IFRIC 15

in relation to segment reporting

Stable demand and continued strong sales• Demand in Sweden and Norway continued

to be stable during the first six months• Strong sales in Sweden and Norway • High level of housing starts - temporarily

fewer starts in Stockholm during the second quarter according to plan

• Revenue for the first six months confirms stable development in our operations in Stockholm

• Housing operations in the rest of Sweden is demonstrating improvement in terms of revenue, profit and margin

• The percentage of sold/reserved residential units in relation to ongoing production 83 % (87) – high level

2016-07-15 │ ytf7 │

Prices on the existing home market

2016-07-15 │ ytf8 │

Tenant-owned apartment prices in cities, existing home market Q2 2007 – Q2 2016SEK/sq.m.

Source: Mäklarstatistik and WSP

010 00020 00030 00040 00050 00060 00070 00080 00090 000

100 000

Q22007

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Sthlm, Inner city Sthlm, Nearby suburbs Gothenburg Malmö

785 855 800

452625 664

194460 494

0

768745

529

648

413

383

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

High level of sold residential units

2016-07-15 │ ytf9 │

Numberof units

Q1-Q2 Q3-Q4

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

1,553

981

607

54

1,600

1,273

843

54

761 753 655444 543 647

205427 470

0

744914

559

685

448

355

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

High level of housing starts

2016-07-15 │ ytf10 │

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

Numberof units

1,505

1,003

653

284

1,667

1,228

782

54

Q1-Q2 Q3-Q4

Kuttern - KanalstadenÖsteråker

2016-07-15 │ ytf11 │

No. of residential units 150Housing starts Q2 2016 50Completed in 2018

Södra Centrum Nyx och Södra NovaGothenburg

2016-07-15 │ ytf12 │

No. of residential units 350Housing starts Q2 2016 143Completed in 2018

Banktorget - StrømmenSkedsmo

2016-07-15 │ ytf13 │

No. of residential units 42Housing starts Q2 2016 42Completed in 2018

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

2016-07-15 │ ytf14 │

73

57

6864

0

20

40

60

80

100

120

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Stockholm Sweden International Average value, total

Number

7,0811) residential units in current production

2016-07-15 │ ytf15 │

0%

20%

40%

60%

80%

100%

01 0002 0003 0004 0005 0006 0007 0008 0009 000

10 000

Q2 Q32012

Q4 Q12013

Q2 Q32013

Q4 Q12014

Q2 Q32014

Q4 Q12015

Q2 Q32015

Q4 Q12016

Q2

NumberPercentage sold/reserved implicates low

risk in current production in Q2 2016

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

30 June 2016

30 June 2015

31 Dec 2015

Number of residential units 1) 7,081 6,917 7,212

Number of residential units sold 4,458 4,105 4,410

Number of residential units reserved 1,149 1,470 1,543

Sold residential units, % 66 64 64

Reserved residential units, % 17 23 22

Sold/reserved residential units, % 83 87 86

Completed production, no. of unsold units 2) 92 106 98

- including on the balance sheet 68 69 711) Including rental and residential care units within

JM Property Development – not included in percentage sold/reserved 338 484 3382) After final occupancy according to plan

2016-07-15 │ ytf16 │

JM Residential Stockholm

2016-07-15 │ ytf17 │

January - June Full-yearSEK m 2016 2015 2015Revenue 3,445 3,120 6,273

Operating profit 1) 600 531 1,078

Operating margin, % 17.4 17.0 17.2

Number of available building rights 12,100 11,500 12,400Number of residential units in current production 3,237 3,277 3,6271) Of which property sales - - 0

• Stable demand • Strong sales• Greater percentage of starts during the second half of the

year• Increased revenue confirms stable development• Cash flow is in balance taking into consideration decrease

in development properties

JM Residential Sweden

2016-07-15 │ ytf18 │

• Stable demand

• Strong sales

• Improved revenue, profit and margin• Cash flow is in balance taking into consideration

decrease in development properties

January - June Full-yearSEK m 2016 2015 2015Revenue 1,993 1,588 3,278

Operating profit 1) 219 138 308

Operating margin, % 11.0 8.7 9.4

Number of available building rights 9,600 8,900 9,900Number of residential units in current production 2,075 1,883 1,9441) Of which property sales 0 0 0

JM International

2016-07-15 │ ytf19 │

• Stable demand • Strong sales in Norway• The concentration of our foreign operations strengthens the

operating margin• Building rights portfolio in Denmark liquidated• Cash flow strengthened by decrease in working capital

January - June Full-yearSEK m 2016 2015 2015Revenue 1,667 1,528 3,059Of which Norway 1,487 1,331 2,664

Operating profit 1) 74 80 166Of which Norway 96 83 181

Operating margin, % 4.4 5.2 5.4Of which Norway 6.5 6.2 6.8

Number of available building rights 8,000 7,000 8,200Number of residential units in current production 1,431 1,273 1,3031) Of which property sales -23 20 39

JM Property Development

2016-07-15 │ 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 - June Full-yearSEK m 2016 2015 2015Revenue 62 92 206

Operating profit 1) 5 15 38

Number of available building rights 700 500 600Number of residential units in current production 338 484 3381) Of which property sales - 14 17

JM Construction

2016-07-15 │ ytf21 │

January - June Full-yearSEK m 2016 2015 2015

Revenue 1) 807 1,112 2,084

Operating profit 21 32 45

Operating margin, % 2.6 2.9 2.2

1) Of which internal 247 207 453

• Good demand but tough competition

• Solid orders

• Decreased revenue – co-generation plant project completed

• Lower profit

• Cash flow is limited by a delayed payment from an external orderer that is under dispute

Available building rights portfolio

2016-07-15 │ ytf22 │

1) Rounded to the nearest hundred2) Of which 700 and 500 building rights for rental units and residential care units3) West region4) East region

No. of building rights 1)

Region 06/30/2016 06/30/2015Stockholm 12,800 2) 12,000 2)

Malmö/Lund 3,500 3,500

Gothenburg 3) 2,800 2,300

Uppsala 4) 3,300 3,100

Norway 5,900 4,800

Helsinki 1,900 1,500

Copenhagen - 500

Belgium 200 200

Total approximately 30,400 27,900

SEK m 2013 2014 2015Jan-Jun

2016Opening balance 5,769 5,988 6,802 7,067

Plus 1,274 2,273 2,695 375

Minus -1,055 -1,459 -2,430 -908

Closing balance 5,988 6,802 7,067 6,534

Lower level of development properties Building rights in Balance Sheet

2016-07-15 │ ytf23 │

Approx. 5 years production in Balance Sheet

2016-07-15 │ ytf24 │

1) Residential building rights2) 12-month period3) Guideline value 5 years

No. of building rights 1)

06/30/2016In Balance

SheetHousing

starts 2)Average

period, years 3)

JM Residential Stockholm 8,100 1,569 5.2

JM Residential Sweden 5,100 1,332 3.8

JM International 4,200 825 5.1

JM Property Development 100 - -

Group 17,500 3,726 4.7

68 unsold residential units in the Balance Sheet, SEK 247m

2016-07-15 │ ytf25 │

292

229 235 233 247

0

100

200

300

400

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

SEK m

Cash flow

2016-07-15 │ ytf26 │

Cash flow statement, SEK m Q2

2015Q3

2015Q4

2015Q1

2016Q2

2016From operating activities 1) 2) 3) 659 -193 -423 601 886

From investing activities -5 -2 -2 0 -3

From financing activities -841 -131 143 -696 -784

Total cash flow for the quarter -187 -326 -282 -95 99Cash and cash equivalentsend of period 1,887 1,557 1,275 1,182 1,2821) Of which net investment

project properties -42 -48 -54 -54 -582) Of which net investment

development properties 321 108 -604 319 241

3) Of which paid tax -115 -521 -79 -135 -99

Strong financial position and liquidity

• Equity/Assets ratio 36 percent (37)

• Available liquidity was SEK 4,082m (4,687) of which cash and cash equivalents SEK 1,282m (1,887)

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

• Credit lines of SEK 2,400m have an average maturity of 1.8 years (1.3)

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

656

-1

-0,5

0

0,5

1

1,5

-1 000

-500

0

500

1 000

1 500

2012 2013 2014 2015 30 June2016

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

2016-07-15 │ ytf27 │

SEK m times

1) Non interest-bearing deferred payments for property acquisitions amounted to SEK 534m (498)

1)

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

Net financial items

2016-07-15 │ ytf28 │

1) Refers to claims on JM International

January - June SEK m 2016 2015Financial income 12 8

Revaluation/currency hedging 1) - 1Financial income 12 9Interest expenses -19 -23

Revaluation/currency hedging 1) - -1

Interest expense pensions -16 -16Financial expenses -35 -40

Net financial items -23 -31

Components of profit/loss – housing business Percentage of completion method (gross) Q2 2016 (Q1 2016)

2016-07-15 │ ytf29 │

Cost-based effectSEK 280m (305)

Revaluation effect SEK 333m (287)

Sales effectSEK 64m (16)+ +

=Profit/loss

for the periodSEK 677m (608)

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

2016-07-15 │ ytf30 │

SEK m Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Group 273 223 324 287 333

The net of positive and negative revaluation effects in residential projects during Q2 2016 totaled SEK 333m, which indicates a continued stable assessment

of market conditions for the actual forecast period.

Business segment Stockholm SwedenInterna-

tional TotalQ1 2016 177 79 31 287

Q2 2016 218 83 32 333

• Customer focused – strong brand

• 30,400 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

2016-07-15 │ ytf31 │