Interimreport Q32017……

JM Group

Revenue: SEK 16.8 billion 1)

Total assets: SEK 14.4 billion 2)

No. of building rights: 34,800

No. of employees: 2,540

Market Cap: SEK 14.5 billion 3)

Norway Sweden

Belgium

Finland

1) 12-month period2) According to segment reporting3) SEK 208 per share

18 % 3 %

0 %

79 %

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0

2

4

6

8

10

12

14

16

18

20

0

500

1 000

1 500

2 000

2 500

2012 2013 2014 2015 2016 Okt/Sept2016/2017

Operating profit Operating margin

Group Summary 1)

January – September 2017

• Revenue increased toSEK 12,457m (11,456)

• Operating profit increased toSEK 1,731m (1,414)

• Operating margin increased to13.9 percent (12.3)

• Gains of property sales SEK 14m (15)

1) According to segment reporting

%SEK m

2) 12-month period1)

2)

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Group Summary 1)

January – September 2017

• Profit before tax increased to SEK 1,958m 2) (1,379)

• Earnings per share increased to SEK 22.40 (14.50)

• Return on equity increased to 39.7 percent (30.7)

• Cash flow from operations was SEK 1,868m (1,589)

1) According to segment reporting2) Of which SEK 275m from the sale of participations in Småa AB

Friisgatan, Malmö 90 residential units

Solstrålen, Stockholm 138 residential units

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Group Summary January – September 2017

• Number of residential units sold 2,416 (2,918)

• Lower level residential units sold – cautious market in Stockholm

• Number of housing starts 2,690 (2,830)

• Lower level of housing starts in Norway during the nine-month period in line with plan - proportionately more starts during the fourth quarter

• Good level of housing starts in Stockholm to normal level of reservations – stable profitability

• Residential building rights portfolio 34,800 (30,900)

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Kajplats 1, Västerås 82 residential units

Entréen hus 1, Oslo, Norway 58 residential units

Operating profit

January - September

According to segment reporting, SEK m 2017 2016

JM Residential Stockholm 1,041 908

JM Residential Sweden 488 354

JM International 188 137

JM Property Development 24 12

JM Construction 23 33

Group-wide expenses -33 -30

Total 1,731 1,414

Taituri, Ebo, Finland 39 residential units

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• The housing market in Stockholm was cautious during the third quarter. In rest of Sweden demand has been stable

• During the third quarter, the market in Norway weakened, demand in Finland continued to improve

• After a cautious period during the third quarter, demand for JM’s residential units in Stockholm improved during the end of the quarter. Great interest in the rest of Sweden

• Housing operations in the rest of Sweden – stronger revenue, profit and margin

• The percentage of sold/reserved residential units in relation to ongoing production 71 % (82) – good level

Cautious market in Stockholm –stable market in the rest of Sweden

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Prices on the existing home marketTenant-owned apartment prices in cities, existing home market Q3 2008 – Q3 2017SEK/sq.m.

Source: Mäklarstatistik and WSP

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

Q42008

Q42009

Q42010

Q42011

Q42012

Q42013

Q42014

Q42015

Q42016

Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö

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Lower level of residential units sold

1230 1153955 951 975 1001

650790

460

370399

322 343

193

183

0 00

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017

Numberof units

Q1 – Q3 Q4

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

54

1,600

1,273

843

1,552

1,318

973

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Somewhat lower level of housing starts

1 197 1 111 1 119860

978 1 051

554741

520

470 634

368358

228

136782

877

54

229

00

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017

JM Residential Stockholm JM Residential Sweden JM International JM Property Development

Numberof units

1,667

1,228

1,745

1,336

Q1 – Q3 Q4

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Vattenkvarnen, SöderdalenJärfälla

No. of residential units 1,250

Housing starts Q3 2017 123

Completed in 2030

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NilsMalmö

No. of residential units 127

Housing starts Q3 2017 127

Completed in 2019

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TillyHelsinki, Finland

No. of residential units 150

Housing starts Q3 2017 41

Completed in 2018

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

122

92

34

72

0

20

40

60

80

100

120

140

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Stockholm Sweden International Average value, total

Number

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7,7391) residential units in current production

0%

20%

40%

60%

80%

100%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

Q4 Q12014

Q2 Q32014

Q4 Q12015

Q2 Q32015

Q4 Q12016

Q2 Q32016

Q4 Q12017

Q2 Q32017

NumberPercentage sold/reserved implicates low risk

in current production in Q3 2017

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

JM InternationalJM Residential SwedenJM Residential Stockholm

Normal level sold/reserved

Total

1) Including 416 rental and residential care units within JM Property Development – not included in percentage sold/reserved

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30 Sept2017

30 Sept2016

31 Dec2016

Number of residential units 1) 7,739 7,793 7,984

Number of residential units sold 4,515 5,004 4,959

Number of residential units reserved 686 1,078 886

Sold residential units, % 62 67 65

Reserved residential units, % 9 15 12

Sold/reserved residential units, % 71 82 77

Completed production, no. of unsold units 2) 86 81 70

- including in the balance sheet 67 62 641) Including rental and residential care units within

JM Property Development – not included in percentage sold/reserved 416 338 4162) After final occupancy according to plan

Residential units in current productionJM Group

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JM Residential StockholmJanuary - September Full-year

SEK m 2017 2016 2016

Revenue 5,331 5,144 7,162

Operating profit 1,041 908 1,295

Operating margin, % 19.5 17.7 18.1

Number of available building rights 13,300 12,400 13,000

Number of residential units in current production 3,837 3,564 3,786

1) Of which property sales 6 - -

• Cautious demand

• Lower sales during the quarter – more normalized at the end of the quarter

• Stable profitability

• Cash flow is in balance taking into consideration decrease in development properties

Kajplats Kvarnholmen, Stockholm 104 residential units

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JM Residential Sweden

• Stable demand

• Good sales

• Stronger revenue, profit and margin

• Cash flow in balance

January - September Full-yearSEK m 2017 2016 2016

Revenue 3,215 2,823 3,820

Operating profit 1) 488 354 480

Operating margin, % 15.2 12.5 12.6

Number of available building rights 10,100 9,400 9,700

Number of residential units in current production 2,196 2,300 2,240

1) Of which property sales - 37 37Österport, Västerås 70 residential units

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JM International

• Weakening market in Norway during the quarter - demand in Finland continued to improve

• Low level of housing starts in Norway in line with plan - proportionately more starts during the fourth quarter assuming normal planning processes and demand

• Cash flow strengthens by temporary decrease in working capital

January - September Full-yearSEK m 2017 2016 2016

Revenue 2,653 2,541 3,477of which JM Norway 2,278 2,241 3,056

Operating profit 1) 188 137 204of which JM Norway 179 158 227

Operating margin, % 7.1 5.4 5.9of which JM Norway 7.9 7.1 7.4

Number of available building rights 10,500 7,900 8,900

Number of residential units in current production 1,290 1,591 1,5421) Of which property sales - -23 -23

Entréen, Oslo, Norway 58 residential units

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JM Property Development

• The completed Dalénum rental project, Lidingö consisting of 97 apartments is held in JM’s balance sheet

• Ongoing production in three rental projects in JM’s balance sheet:‐ Tjärtunnan, Stureby, 187 apartments ‐ Spaken, Hägernäs, Täby, 136 apartments ‐ Alphyddan, Nacka, 93 student apartments

• 416 rental units and residential care units in current production

January - September Full-yearSEK m 2017 2016 2016

Revenue 48 96 142

Operating profit 1) 24 12 30

Number of available building rights 900 1,200 900

Number of residential units in current production 416 338 416

1) Of which property sales 8 1 1

Rental unit project Spaken in Hägernäs, Täby

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JM ConstructionJanuary - September Full-year

SEK m 2017 2016 2016

Revenue 1) 1,601 1,211 1,665

Operating profit 23 33 43

Operating margin, % 1.4 2.7 2.6

1) Of which internal 391 359 514

• Good demand but tough competition

• Good orders

• Increased revenue

• Lower profit and margin

• A long-term project is underway to raise profitability

• Cash flow in balance

Lindes Backe, Stockholm

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Available building rights portfolio

1) Rounded to the nearest hundred2) Of which 900 and 1,200 building rights for rental units and residential care units3) West region4) East region

No. of building rights 1)

Region 09/30/2017 09/30/2016

Stockholm 14,2002)

13,6002)

Malmö/Lund 3,300 3,500

Gothenburg 3) 3,300 2,700

Uppsala 4) 3,500 3,200

Norway 7,700 5,800

Helsinki 2,600 1,900

Belgium 200 200

Total 34,800 30,900

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SEK m 2014 2015 2016Jan-sep

2017

Opening balance 5,988 6,802 7,067 7,121

Plus 2,273 2,695 1,903 1,214

Minus -1,459 -2,430 -1,849 -1,351

Closing balance 6,802 7,067 7,121 6,984

Unchanged level of development properties Building rights in Balance Sheet

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Project properties

Properties under development 634 510 583

Fully developed rental unit properties 1) 224 - -

Fully developed commercial properties 20 44 19

Total 878 554 602

SEK m 09/30/2017 09/30/2016 12/31/2016

1) Dalénum, Lidingö, 97 apartments

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Approx. 4 years production in Balance Sheet

No. of building rights 1)

09/30/2017In Balance

SheetHousing

starts 2)Average

period, years 3)

JM Residential Stockholm 7,700 1,753 4.4

JM Residential Sweden 6,000 1,409 4.3

JM International 4,300 656 6.6

JM Property Development 100 229 0.4

Group 18,100 4,047 4.5

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

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67 unsold residential units inBalance Sheet, SEK 267m

SEK m

240 233

205

269 267

0

100

200

300

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

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Cash flow

Cash flow statement, SEK m Q3

2016Q4

2016Q1

2017Q2

2017Q3

2017

From operating activities 1) 2) 3) 102 368 1,001 293 574

From investing activities -2 -1 307 -3 -1

From financing activities -207 -25 -209 -697 -225

Total cash flow for the quarter -107 342 1,099 -407 348

Cash and cash equivalentsend of period 1,177 1,520 2,619 2,211 2 557

1) Of which net investment project properties -57 -72 -86 -104 -98

2) Of which net investment development properties 7 -501 122 -15 6

3) Of which paid tax -90 -89 -99 -121 -93

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According to segment reporting

Strong financial position and liquidity

• Equity/Assets ratio 1) 39 percent (38)

• Available liquidity was SEK 5,357m (3,977) of which cash and cash equivalents SEK 2,557m (1,177)

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

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

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

SEK m times

1) According to segment reporting2) Non interest-bearing deferred payments for property acquisitions amounted to SEK 543m (513)

Net interest-bearing liability(+)/receivable(-) 1)

-727

-1

-0,5

0

0,5

1

1,5

-1 000

-500

0

500

1 000

1 500

2013 2014 2015 2016 Sept 30,2017

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

1)

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Net financial itemsJanuary - September

SEK m 2017 2016

Financial income 1 15

Sale of participations in Småa AB 275 -

Financial income 276 15

Interest expenses -25 -26

Interest expense pensions -24 -24

Financial expenses -49 -50

Net financial items 227 -35

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Components of profit/loss – housing business Percentage of completion method (gross) Q3 2017 (Q2 2017)

Cost-based effectSEK 372m (391)

Revaluation effectSEK 402m (367)+ +

=Profit/loss

for the periodSEK 725m (823)

Sales effectSEK -49m (65)

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

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Revaluation effects – housing business

The net of positive and negative revaluation effects in residential projects during Q3 2017 totaled SEK 402m, which indicates a continued stable assessment

of market conditions for the actual forecast period.

Business segment Stockholm SwedenInterna-

tional Total

Q2 2017 158 171 38 367

Q3 2017 203 142 57 402

Mkr Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Group 327 373 414 367 402

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JM today• Customer focused – strong brand

• 34,800 building rights in attractive locations

• Fundamentally favorable prospects

• Sustainable urban planning

• Efficient management system

• Investments in digital support

• Strong balance sheet – focus on cash flow

• Well balanced risk profile

• Skills development prioritized

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The project Nils, Malmö