JM Group Interim Report January - June 2006

August, 2006

Group Summary January – June 2006

2006-08-30 2

• Income increased by 27 percent to SEK 5,809m (4,592)

• Earnings before tax improved substantially to SEK 819m (364)

• Property sales of SEK 805m (438) provided capital gains of SEK 121m (69)

Group Summary January – June 2006

2006-08-30 3

• Number of sold residential units 2,060 (2,124)

• Number of housing starts 1,860 (1,861)

• Earnings per share increased to SEK 6.80 (2.30) 1)

• Return on equity increased to 46 % (17)

• Cash flow from operations totaled SEK 704m (1,255)

1) Comparative figures have been restated due to the share split.

Good market and sales

2006-08-30 4

• Good demand on all of JM's housing markets

• Continued strong sales for residential units in the form of signed contracts

• The percentage of sold or reserved residential units in relationship to ongoing production is very high

• Certain tendency for rising costs in projects - especially in Norway

Continued good demand throughout Sweden

Tenant-owned apartment prices in cities, second-hand market 1997 – Q2 2006

SEK/sq.m.

2006-08-30 5

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Q1 199

7 Q3Q1 1

998 Q3

Q1 199

9 Q3Q1 2

000 Q3

Q1 200

1 Q3Q1 2

002 Q3

Q1 200

3 Q3Q1 2

004 Q3

Q1 200

5 Q3Q1 2

006

Sthlm, Inner city Sthlm, Inner suburbs Gothenburg MalmöSource: Temaplan AB/ Erik Olsson Fastighetsförmedling AB and Mäklarsamfundet/Värderingsdata

Continued good home sales figures Group

2006-08-30 6

1 275

2 393 2 124 2 060

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2003 2004 2005 Jan-Jun 2006

Q1-Q2 Q3-Q4

3,189

4,315 4,240

No. of sold units

High level of production starts Group

2006-08-30 7

8861 842 1 861 1 860

0

500

1 000

1 500

2 0002 500

3 000

3 500

4 000

4 500

5 000

2003 2004 2005 Jan-Jun 2006

Q1-Q2 Q3-Q4

Number

2,714

3,9434,476

JM Residential Stockholm

2006-08-30 8

SEKm 2006 2005 2005Income 2,293 1,885 3,816

Operating profit 379 214 500

Operating margin (%) 16.5 11.4 13.1

Number of available building rights 9,500 9,500 9,200

January - June Full Year

• Strong sales

• Increased prices

• Cost control

• Strong improvement of margins

• Very high return on operating capital

Acquisition of building rights corresponding to 2,000 residential units in Stockholm

2006-08-30 9

• After the end of the reporting period JM reached an agreement with Vasakronan for the acquisition of land for about 2,000 residential units in Solna and Sundbyberg

• About 650 residential units in a first phase, followed by about 1,350 more residential units through an option agreement

• Vasakronan will acquire from JM two recently built office buildings in Frösunda, Solna, for a total of 20,000 sq.m. with possession in 2007 and 2009, respectively

• Vasakronan will acquire from JM land zoned for office buildings in the same area with building rights for a total of about 20,000 sq.m. with possession in 2006 and 2007 - will be developed together with Vasakronan

JM Residential Sweden

2006-08-30 10

SEKm 2006 2005 2005Income 1,820 1,461 3,012

Operating profit 243 126 341

Operating margin (%) 13.4 8.6 11.3

Number of availablebuilding rights 10,400 7,900 8,400

• Strong sales

• Increased prices

• Cost control

• Strong improvement of margins

• Very high return on operating capital

January - June Full Year

JM International

2006-08-30 11

SEKm 2006 2005 2005Income 1,254 853 2,069

Operating profit 117 67 183

Operating margin (%) 9.3 7.9 8.8

Number of available building rights 6,800 5,350 5,600

• Cautiously increasing prices

• Strong sales

• Improvement of margins

• Intensified competition for building rights

• Production costs are continuing to rise during 2006 in Norway

• Establishment continues in Finland

January - June Full Year

JM Property Development

• Continued project property sales during first six monthsof SEK 395m provided capital gains of SEK 97m

• Development of 10,000 sq.m. office space in Frösunda continue according to plan

• Two rental agreements signed during the first six months in Frösunda Park for 3,500 sq.m.

• Agreement with Vasakronan for the sale of office buildings in Frösunda

SEKm 2006 2005 2005Income 50 130 211

Operating profit 95 28 212

January - June Full Year

2006-08-30 12

JM Production

2006-08-30 13

• Stable development

• Cost control

• Stable orders

SEKm 2006 2005 2005Income 709 480 1,197

Operating profit 30 24 58

Operating margin (%) 4.2 5.0 4.8

January - June Full Year

Change in development propertiesBuilding rights in balance sheet

Jan-Jun SEKm 2003 2004 2005 2006

Opening balance 3,871 3,631 2,971 2,925

Plus 664 275 1,388 1,057

Minus -904 -935 -1,434 -469

Closing balance 3,631 2,971 2,925 3,513

2006-08-30 14

Maximum 4 years production in balance sheetGood composition of building rights portfolio

JM Residential Stockholm 6,200 1,826 3.4

JM Residential Sweden 6,000 1,528 3.9

JM International 4,100 1,121 3.7

Group 16,300 4,475 3.6

No. building rights, units In balance Production Average2006-06-30 sheet starts period, years

1)

2)

2006-08-30 15

1) Residential building rights2) 12-month period

Strong Cash flow Q2 2006Group

Q2 Q3 Q4 Q1 Q2Cash Flow Statement, SEKm 2005 2005 2005 2006 2006

Cash flow from operating activities 739 216 1,897 64 640

Cash flow from investment activities 2 22 22 -13 -4

Cash flow from financing activities -1,756 3 -308 -477 -1,301

Total cash flow for the quarter -1,015 241 1,611 -426 -665

Liquid assets at end of 782 1,023 2,634 2,208 1,543

1) Of which payment flow from sale of project properties 32 40 1,283 446 145

1)

2006-08-30 16

Very low level unsold residential units in the balance sheet

0

20

40

60

80

100

120

140

Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

SEKm

2006-08-30 17

Consolidated Balance Sheet

2006-08-30 18

AssetsProject properties Development propertiesOther assets

Total

Shareholders' equity and liabilities Shareholders' equity Long-term liabilitiesCurrent liabilities

TotalDebt/equity ratio Equity ratio (%)

2,071 1,1832,734 2,9252,595 4,047

7,400 8,155

2,590 3,3111,962 1,4762,848 3,368

7,400 8,155.2 -

35 41

7973,5133,336

7,646

2,7351,5803,331

7,646- 0

36

SEKm 2005-06-30 2005-12-312006-06-30

Net interest-bearing liability/receivable

2006-08-30 19

-2000

-1000

0

1000

2000

3000

4000

5000

6000

2000 2001 2002 2003 2004 2005 Jan-Jun2006

-2

-1

0

1

2

3

4

5

6

Net interest-bearing liability/receivable debt/equity ratio

SEKm times

Net financial items January - June 2006

Financial income 24Interest expenses -20Early redemption derivatives -16Interest expense pensions -13Interest 3

Financial expenses -46

Net financial items -22

2006-08-30 20

Leading environmental company

Energy-efficient buildings contribute to reduced energy consumption - TenstaBo06

JM named as one of the world's Top-20 leading environmental companies

2006-08-30 21

Good prospects for 2006

2006-08-30 22

• Customer-focused – strong brand

• 26,700 residential building rightsin attractive locations

• Good market– development Nordic area

• Industrialized process and attractive homes

• Strong balance sheet and financial flexibility - cash flow focus

• Competent and engaged co-workers