Interim report ­2/ 2013

J M G R O U P J A N U A R Y – J U N E 2 0 1 3

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue (segment reporting) 6,244 6,396 3,369 3,208 12,982 13,134

Operating profit (segment reporting) 1) 709 674 374 337 1,433 1,398

Operating margin (segment reporting) (%) 11.4 10.5 11.1 10.5 11.0 10.6

Revenue 2) 6,094 5,933 3,396 2,946 12,641 12,480

Operating profit 1)­2) 638 651 350 322 1,361 1,374

Profit before tax 2) 609 626 336 310 1,301 1,318

Operating margin 2)­(%) 10.5 11.0 10.3 10.9 10.8 11.0

Cash flow from operating activities –187 –138 122 –140 930 979

Return on equity 2)­(%) 23.5 21.9

Equity/assets ratio 2)­(%) 34 37 34 37 38

Earnings per share 2)­(SEK) 5.70 5.50 3.20 2.70 12.00 11.70

Number of residential units sold 1,652 1,281 943 654 3,323 2,952

Number of housing starts 1,382 1,406 808 775 3,139 3,163

Number of residential units in current production 5,633 5,769 5,9881) Of which impairment loss on project property - - - - –95 –952) According to IFRIC 15.

The Group applies IFRIC 15 Agreements for the Construction of Real Estate to its income statement and balance sheet. This means that revenue and profit and loss for JM's operations outside of Sweden, JM International, are reported according to the completed contract method. Segment reporting and project management are reported according to IAS 11, percentage of completion method. The description of operations is based on segment reporting.

IMPROVED DEMAND FOR THE SWEDISH HOUSING OPERATIONS

● According to segment reporting revenue decreased to SEK 6,244m (6,396) and operating profit increased to SEK 709m (674). The operating margin increased to 11.4 percent (10.5)

● Restated­according­to­IFRIC­15­revenue­amounted­to­SEK­6,094m­(5,933)­and­operating­profit­totaled­SEK­638m­(651)­

● Profit­before­tax­decreased­to­SEK­609m­(626).­Profit­after­tax­amounted­to­SEK­457m­(454).­

● Return­on­equity­for­the­past­twelve­months­amounted­to­23.5­percent­(25.6).­Earnings­per­share­for­the­first­six­months­amounted­to­SEK­5.70­(5.50).

● Consolidated­cash­flow­including­net­investments­in­properties­amounted­to­SEK­–187m­(–138)­with large investments in development properties in JM Residential Stockholm

● Number­of­residential­units­sold­increased­to­1,652­(1,281).­Housing­starts­totaled­1,382­(1,406).­The­number­of­residential­units­sold­and­housing­starts­in­the­second­quarter­includes­146­rental­units.

1) According to segment reporting

561

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387 337 374

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SEK m %OPERATING PROFIT AND OPERATING MARGIN

GROUP

1)

12-month­ period­margin­ (%)12-month­ period­operating­ profit­(SEK­m)Operating­ profit­ per­quarter­ (SEK­m)

REVENUEGROUP

1)

3­663

2­302 2­417

3­097 3­2083­369

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Revenue per quarter 12-month­period

SEK m SEK m

1) According to segment reporting

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 1

GROUP

”Demand for JM's residential units in Sweden continues to show a positive development. Sales and reservations in Stockholm have continued to improve but the planning process is limiting the number of housing starts for 2013. There was some improvement in the market even in other parts of Sweden, with Gothenburg and Uppsala showing strong demand. Demand continues to be good in all of our markets in Norway.

Structurally, conditions for our business are favorable, including large population increases in the markets where we are active. We are dynamically positioned with financial strength and a very good project portfolio that continues to be improved and renewed at the same time as our strong balance sheet offers us freedom of action."

Johan Skoglund, President and CEO

MARKET, SALES AND HOUSING STARTS

Demand for newly built homes in Stockholm continued to improve­during­the­first­six­months.­There­was­also­some­improvement­in­demand­in­the­rest­of­Sweden.­Customers­are showing strong interest in JM's projects at the same time as the sales process in Sweden is taking a bit longer

January–June April–June July–June Full-yearOperating profit (SEK m) 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 531 483 284 239 1,089 1,041JM Residential Sweden 113 119 59 60 225 231JM International 52 66 28 34 167 181JM Property Development 12 3 1 2 –74 –83JM Production 30 29 18 15 72 71Group-wide expenses –29 –26 –16 –13 –46 –43Total as per segment reporting 709 674 374 337 1,433 1,398Restatement JM International 1) –71 –23 –24 –15 –72 –24Total 638 651 350 322 1,361 1,374Of which -property sales 21 0 - - 21 0 -impairment loss on project property - - - - –95 –95

1) Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting.

in­the­uncertain­economic­situation.­Demand­was­good­in­Norway.­

Population growth in our main markets, coupled with continued low interest rates, is supporting demand for housing.

The number of sold residential units in the form of signed contracts­increased­to­1,652­(1,281),­including­146­rental­units.­The­number­of­sold­or­reserved­residential­units­in­relation­to­current­production­amounts­to­71­percent­(65),­with­an­ interval­of­60-65­percent­considered­normal.­JM­Residential­Stockholm­sold­694­residential­units­(560),­JM­Residential­Sweden­sold­505­(407),­JM­International­sold­307­(314)­and­JM­Property­Development­sold­146.­The­number­of­housing­starts­totaled­1,382­(1,406),­of­

which­794­(712)­in­the­Stockholm­area­and­395­(363)­else-where­ in­Sweden.­The­housing­starts­ include­146­ rental­units­ in­ Stockholm.­ In­ JM­ International,­ production­ was­only­started­on­193­residential­units­(331)­due­to­the­large­number­of­housing­starts­in­the­fourth­quarter­of­2012.­

The number of residential units in current production amounts­ to­ 5,633­ (5,769),­ of­which­ 254­ are­ rental­ units­and­residential­care­units.

733536

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NumberHOUSING­STARTS

GROUP

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NumberRESIDENTIAL UNITS IN CURRENT PRODUCTION

%

JM InternationalJM Residential Sweden

JM Residential Stockholm

Normal level sold/reserved (60-65%)Percentage sold/reserved, Group (%)

Total1)

1) Including rental units and residential care units in JM Property Development, not included in the percentage of sold and reserved

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 32

REVENUE, OPERATING PROFIT AND OPERATING MARGIN

Consolidated revenue in accordance with segment reporting for the first six months decreased to SEK 6,244m­(6,396).­Revenue­restated­according­to­IFRIC­15­amounted­to­SEK­6,094m­(5,933).

Operating profit according to segment reporting increased­ to­SEK­709m­ (674)­and­ the­operating­margin­increased­to­11.4­percent­(10.5).­Operating­profit­restated­according­to­IFRIC­15­was­SEK­638m­(651)­with­a­limited­

number of completed projects in JM Norway during the first six­months,­which­shifts­the­profit/loss­recognition­forward.

During the first six months, properties were sold for SEK 85m­(0),­with­a­profit­of­SEK­21m­(0),­of­which­SEK­18m­refers­ to­ the­ sale­ of­ a­ senior­ housing­ project­ in­Malmö.­Rental income from JM’s project properties totaled SEK 37m­(40),­with­residential­units­accounting­for­SEK­9m­(4).­Net­rental­income­was­SEK­14m­(15).

January–June April–June July–June Full-yearOperating margin (%) 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 19.7 17.3 20.4 17.4 19.8 18.6JM Residential Sweden 7.5 7.6 7.4 7.6 7.7 7.7JM International 3.9 4.9 3.7 4.9 5.3 5.7JM Production 3.4 3.0 3.5 2.9 3.7 3.5

Residential units in current production 06-30-2013 06-30-2012 12-31-2012

Number of residential units in current production 1) 5,633 5,769 5,988Percentage­sold­residential­units­in­current­production­(%)­2)­3) 56 55 55Percentage­reserved­residential­units­in­current­production­(%)­3) 15 10 11Percentage­sold­and­reserved­residential­units­in­current­production­(%)­3) 71 65 661) Beginning with production startup through final occupancy according to plan.2) Percentage sold residential units expressed as binding contract with end customer.3) Including 254 rental units and residential care units in current production in JM Property

Development, not included in the percentage of sold and reserved residential units in current production.

Completed production, unsold units 06-30-2013 06-30-2012 12-31-2012

Completed production, number of unsold units 1) 215 129 176- Of which the balance sheet item reported as "Participations in tenant-owners

associations, etc." 131 53 70

1) After final occupancy according to plan.

RESIDENTIAL BUILDING RIGHTS 1)

The­number­of­available­building­rights­amounts­to­28,200­(27,700),­of­which­18,400­(17,550)­are­recognized­in­the­balance­sheet.­Capital­tied­up­in­building­rights­(develop-ment­properties­on­the­balance­sheet)­for­residential­units­increased­to­SEK­6,218m­(5,860)­at­the­end­of­the­first­six­months.­

During the first six months, JM purchased development properties­ for­ residential­ units­ for­SEK­1,000m­ (585),­ of­which­ SEK­ 638m­ relates­ to­ JM­ Residential­ Stockholm,­SEK­180m­to­JM­Residential­Sweden­and­SEK­182m­to­JM­International.

1) As of Q1 2013, available building rights for rental units and residential care units in JM Property Development are recognized in the accounts of the Group's total available building rights. Comparable figures have not been restated.

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Cash flow per quarter 12-month­period

SEK mCASH­FLOW

GROUP

1)

320

-1

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1000

2008 2009 2010 2011 2012 June­30,2013

Interest-bearing­net­liabilities(+)/receivables(-) Debt/equity­ratio­(x)

SEK mINTEREST-BEARING­NET­LIABILITIES(+)/RECEIVABLES(-)

GROUP times

1) Total cash flow for the period

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 3

FINANCIAL ITEMS

Net­financial­items­decreased­by­SEK­4m­compared­to­the­previous­year­with­a­slight­decrease­in­financial­income.The­total­interest-bearing­loan­was­SEK­1,928m­(1,935),­

of­which­the­provision­for­pensions­comprised­SEK­948m­(861).­At­the­end­of­the­first­six­months,­the­average­inter-est rate for the total interest-bearing loan stock including pension­liabilities­was­3.5­percent­(3.6).­The­average­term­for­ fixed-rate­ loans­ excluding­ pension­ liabilities­ was­ 0.2­years­(0.3).Consolidated­ available­ liquidity­ was­ SEK­ 4,407m­

(4,567).­ Aside­ from­ cash­ and­ cash­ equivalents­ of­ SEK­1,607m­(1,767),­this­includes­unutilized­overdraft­facilities­

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Financial income 1) 21 24 10 13 35 38Financial expenses 2) –50 –49 –24 –25 –95 –94Financial income and expenses –29 –25 –14 –12 –60 –561) Of which revaluation and currency hedging 4 2 0 1 6 42) Of which revaluation and currency hedging –4 –3 0 –2 –5 –4

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Interest-bearing net liabilities (+)/receivables (–) at beginning of period 1) –667 –737 –225 –643 168 –737Change in interest-bearing net liabilities/receivables 987 905 545 811 152 70Interest-bearing net liabilities (+)/receivables (–) at end of period 320 168 320 168 320 –6671) Defined-benefit pension plans have been restated, see pages 19-20.

CASH FLOW

Cash­flow­from­operating­activities­was­SEK­–187m­(–138)­during­the­first­half­of­the­year.­Net­investments­in­devel-opment­properties­resulted­in­a­cash­flow­of­SEK­–335m­(–114).­Increased­holdings­of­unsold­residential­units­bur-den­cash­ flow­by­SEK­–227m­ (–­34).­Consolidated­cash­flow­from­project­properties­(sales­minus­investment)­dur-ing­the­first­six­months­was­SEK­–4m­(–123).

Cash flow was burdened by tax payments during the second­quarter­of­SEK­167m­attributable­to­a­ruling­by­the­

Administrative­ Court­ of­Appeals­ for­ the­ years­ 2005­ and­2006.­The­proceedings­referred­ to­ impairment­ losses­on­participations in Group companies, which the Administra-tive­Court­of­Appeal­ruled­to­be­non-deductible.

RISKS AND UNCERTAINTIES

JM's risk and risk management policies are presented in the­ 2012­Annual­ Report­ on­ pages­ 26-29.­ No­ significant­changes­have­occurred­to­change­these­reported­risks.

and­credit­lines­totaling­SEK­2,800m­(2,800),­where­credit­agreements­ for­SEK­2,400m­had­an­average­maturity­of­1.8­years.­

Interest-bearing net liabilities at the end of the first six months­totaled­SEK­320m­(168).­At­the­end­of­the­first­six­months, non-interest-bearing liabilities for implemented property­acquisitions­amounted­to­SEK­797m­(367).­SEK­627m­(205)­of­these­liabilities­are­short-term.

The valuation of financial assets and liabilities shows that there is no material difference between the carrying amount­and­the­fair­value.­

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 34

CONVERTIBLE AND WARRANT PROGRAM

The­ 2013­ Annual­ General­ Meeting­ resolved­ that­ JM­would raise a debenture loan with a maximum value of SEK­120m­by­issuing­a­maximum­of­505,000­convertible­debentures aimed at all employees in Sweden and a max-imum­of­120,000­warrants­aimed­at­all­employees­outside­Sweden­with­a­maturity­of­four­years.­

Upon expiry of the subscription period the loan amounts­to­about­SEK­13.5m­through­the­issue­of­about­75,000­ convertible­ debentures­ and­ the­ number­ of­ war-rants­issued­is­135.­In­accordance­with­IAS­32,­the­liability­and­equity­com-

ponents of the convertible debenture loan are reported separately, which means that the debenture loan is reported in the balance sheet as a liability initially with the nominal­amount­excluding­the­equity­component.

The subscribed convertible bonds and warrants may be­converted­to­one­share­at­a­price­of­SEK­180­between­June­1,­2016­and­May­19,­2017.

Through conversion JM's share capital could increase by­a­maximum­of­SEK­75­thousand,­which­corresponds­to­a­dilution­of­0.1­percent­of­the­shares­and­votes­in­the­company.­ The­ convertible­ debenture­ loan­ was­ settled­against­cash­in­July­2013.

BUY-BACK AND HOLDINGS OF OWN SHARES

During­the­second­quarter­of­2013,­861,424­shares­were­bought­ back­ for­ a­ total­ of­ SEK­ 125m.­ Holdings­ of­ own­shares­subsequently­total­4,991,386.

The number of outstanding shares, excluding holdings of­own­shares,­at­June­30,­2013,­totals­78,839,103.­

PERSONNEL

The number of employees at the end of the first six months was­2,162­(2,353).­The­number­of­wage-earners­was­926­(1,117)­and­the­number­of­salaried­employees­was­1,236­(1,236).­Current­ staffing­ is­ considered­well­ balanced­ for­the current project volume and some adjustments are made­on­a­regular­basis.

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SEK m %OPERATING PROFIT AND OPERATING MARGIN

JM­RESIDENTIAL­ STOCKHOLM

-291 -211

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CASH­FLOWJM­RESIDENTIAL­ STOCKHOLMSEK m

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 5

BUSINESS SEGMENT

JM RESIDENTIAL STOCKHOLMThe JM Residential Stockholm business segment develops residential projects in Greater Stockholm. Operations include acquisitions of development properties, planning, pre-construction, production and sales of residential units.

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 2,701 2,790 1,390 1,376 5,502 5,591Operating profit 531 483 284 239 1,089 1,041Operating­margin­(%) 19.7 17.3 20.4 17.4 19.8 18.6Average operating capital 2,672 2,406Return­on­operating­capital­(%) 40.7 43.3Operating cash flow 301 479 300 211 873 1,051Carrying amount, development properties 3,267 2,741 2,904Number of available building rights 11,100 11,500 10,900Number of residential units sold 694 560 354 252 1,441 1,307Number of housing starts 648 712 334 367 1,443 1,507Number of residential units in current production 2,492 3,032 3,071Number of employees 733 809 798

The average prices on the existing home market increased slightly even during the second quarter, and the supply of residential units is lower compared to the same period last­year.­The­supply­of­new­homes­continues­to­be­low­in­relation­to­long-term­demand­in­the­Stockholm­area.­Com-petition for land appropriate for housing in good locations continues­to­be­intense.­Interest­ in­ JM's­ projects­ is­ strong.­Customers'­willing-

ness to sign a contract early in the process has increased, and both the number of signed contracts and reservation agreements­continued­to­increase­in­the­second­quarter.­The business segment’s revenue amounted to SEK 2,701m­ (2,790)­ and­ operating­ profit­ increased­ to­ SEK­

531m­ (483).­ The­ operating­ margin­ increased­ to­ 19.7­percent­ (17.3).­Operating­profit­was­strengthened­by­ the­improvement­in­sales.­

The limited cash flow is due to investments in develop-ment properties and an increase in the number of unsold residential­units.­

In total, production was started in the second quarter on 334­residential­units­ in­apartment­buildings­in­Stockholm­and­Solna.­

During the second quarter, JM purchased building rights corresponding­to­more­than­100­residential­units­in­Täby­and­Österåker.­

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SEK m %OPERATING PROFIT AND OPERATING MARGIN

JM RESIDENTIAL SWEDEN

12583

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CASH­FLOWJM­RESIDENTIAL­ SWEDENSEK m

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 36

JM RESIDENTIAL SWEDENThe JM Residential Sweden business segment develops residential projects in growth areas in Sweden, excluding Greater Stockholm. Operations include acquisitions of development properties, planning, pre-construction, production and sales of residential units. Contracting operations are also conducted to a limited extent.

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 1,500 1,573 796 790 2,930 3,003Operating profit 1) 113 119 59 60 225 231Operating­margin­(%) 7.5 7.6 7.4 7.6 7.7 7.7Average operating capital 1,516 1,490Return­on­operating­capital­(%) 14.8 15.5Operating cash flow –17 49 –58 4 177 243Carrying amount, development properties 1,421 1,465 1,333Number of available building rights 9,300 9,500 9,200Number of residential units sold­2) 505 407 268 231 1,000 902Number of housing starts­2) 395 363 208 210 811 779Number of residential units in current production 2) 1,596 1,533 1,492Number of employees 496 576 538

1) Of which property sales 9 - - - 9 -

2) Of which rental units 64 - - - 64 -

The average prices on the existing home market increased during­the­second­quarter­in­the­majority­of­JM's­markets.­The supply of residential units on all submarkets is some-what­lower­than­it­was­at­the­same­time­the­previous­year.­

There is strong interest in JM's projects but the custom-ers' decision-making process is still long in southern Swe-den.­Demand­for­JM's­residential­units­ is­strong­with­the­exception of the Malmö/Lund area, where it continues to be­weak.

The business segment's revenue decreased to SEK 1,500m­(1,573)­and­operating­profit­was­SEK­113m­(119),­

including­gains­from­the­sale­of­property­totaling­SEK­9m­(-).­The­operating­margin­was­7.5­percent­(7.6).­

Cash flow is burdened by an increase in development properties.JM­started­production­during­the­second­quarter­on­188­

residential units in apartment buildings in Gothenburg, Norrtälje­and­Uppsala­and­20­single-family­homes­in­Staf-fanstorp.­

During the second quarter, JM purchased building rights corresponding­to­275­residential­units­ in­ the­Gothenburg­area­as­well­as­the­Malmö­and­Lund­area.

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Operating­profit­per­quarter­(SEK­m) 12-month­period­margin­(%)

SEK m %OPERATING PROFIT AND OPERATING MARGIN

JM INTERNATIONAL

126

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54

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CASH­FLOWJM INTERNATIONALSEK m

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 7

JM INTERNATIONALThe JM International business segment develops residential projects in Norway, Denmark, Finland and Belgium. Contracting operations are also conducted to a limited extent in Norway. Revenue and profit and loss for the business segment is reported according to IAS 11, percentage of completion method.

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 1,326 1,356 750 696 3,122 3,152Operating profit 1) 52 66 28 34 167 181Operating­margin­(%) 3.9 4.9 3.7 4.9 5.3 5.7Average operating capital 2,208 2,202Return­on­operating­capital­(%) 7.6 8.2Operating cash flow 21 –217 54 –211 312 74Carrying amount, development properties 1,530 1,654 1,454Carrying amount, project properties 32 74 69Number of available building rights 7,100 6,700 6,500Number of residential units sold 307 314 175 171 736 743Number of housing starts 193 331 120 198 739 877Number of residential units in current production 1,291 1,204 1,425Number of employees 367 354 364

1) Of which property sales 2 - - - 2 -

The business segment's revenue decreased to SEK 1,326m­(1,356).­Operating­profit­decreased­ to­SEK­52m­(66).­The­operating­margin­decreased­to­3.9­percent­(4.9).­

Operating profit and the operating margin were bur-dened by negative results in Finland and Denmark, where the number of residential units in production has decreased.

Cash flow during the first six months is somewhat lim-ited­due­to­investments­in­development­properties.

NORWAY Demand for both newly built homes and homes on the existing­home­market­ continued­ to­ be­good.­Demand­ is­

strengthened by a continued increase in population and high­demand­for­manpower.­The­price­level­on­the­existing­home­market­increased­during­the­first­six­months.­During­ the­ first­six­months,­245­residential­units­ (279)­

were­sold­and­production­began­on­134­units­(289).­Housing­starts­during­ the­second­quarter­consisted­of­

49­residential­units­in­apartment­buildings­and­49­single-family­homes.­The­number­of­ residential­units­ in­current­production­amounts­to­1,101­(966).­

During the second quarter, JM purchased building rights corresponding­to­around­660­homes­in­Oslo­and­Vestfold.­Available­building­rights­correspond­to­5,300­residential­

units­(5,400).­

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 38

OTHER INTERNATIONAL MARKETS

DENMARK

The level of activity on the housing market in Copenhagen is­slowly­increasing.­Banks­continued­their­restrictive­lend-ing practices to mortgage customers, which offsets the positive­effect­of­lower­interest­rates.­The­price­level­on­the­existing home market increased slightly from a low level during­the­first­six­months.­During­the­first­six­months,­5­residential­units­(4)­were­

sold­and­production­began­on­0­units­(2).­The number of residential units in current production

amounts­to­0­(20).­No­acquisitions­were­made­during­the­first­six­months.­Available­building­ rights­ correspond­ to­700­ residential­

units­(700).

FINLAND

The­ level­ of­ activity­ on­ the­ housing­ market­ in­ Helsinki­remains­stable.­However,­customers­are­still­cautious­and­time­to­closing­is­long.­The­price­level­in­the­capital­region­was­stable­during­the­first­six­months.During­ the­ first­ six­months,­30­ residential­ units­ (7)­were­

sold­and­production­began­on­22­units­(14).­The number of residential units in current production

amounts­to­56­(73).During the second quarter building rights equivalent to

115­residential­units­were­acquired­in­Helsinki.­Available­building­ rights­ correspond­ to­700­ residential­

units­(100).­

BELGIUM

The level of activity on the housing market in the Brussels region­continues­to­be­stable.­The­price­level­in­the­region­increased­slightly­during­the­first­six­months.­During­ the­ first­ six­ months,­ 27­ residential­ units­ (24)­

were­sold­and­production­began­on­37­units­(26).­Housing­starts consisted of residential units in an apartment build-ing­in­Anderlecht.­

The number of residential units in current production amounts­to­134­(145).­No­acquisitions­were­made­during­the­first­six­months.­Available­building­ rights­ correspond­ to­400­ residential­

units­(500).

613

2 1

-100

-80

-60

-40

-20

0

20

40

60

Q22010

Q4 Q22011

Q4 Q22012

Q4 Q22013

Operating­profit­per­quarter­(SEK­m)

SEK mOPERATING PROFIT

JM PROPERTY DEVELOPMENT

-60

86

-37

39

-400

-200

0

200

400

600

Q22010

Q4 Q22011

Q4 Q22012

Q4 Q22013

Cash flow per quarter 12-month­period

CASH­FLOWJM PROPERTY DEVELOPMENTSEK m

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 9

JM PROPERTY DEVELOPMENTThe JM Property Development business segment primarily develops rental units, residential care units and commercial properties in Greater Stockholm. The business segment's entire portfolio comprises project development properties.

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 79 39 56 18 117 77Operating profit 1) 12 3 1 2 –74 –83Average operating capital 960 939Return­on­operating­capital­(%) –7.7 –8.8Operating cash flow 18 –99 39 –37 –44 –161Carrying amount, development properties 39 61 61Carrying amount, project properties 857 910 864Number of available residential building rights 2) 700Number of residential units sold­2) 146 146 146Number of housing starts­2) 146 146 146Number of residential units in current production 2) 254Number of employees 17 16 16

1) Of which -property sales 10 0 - - 10 0 -impairment loss on project property - - - - –95 –95

2) Refers to rental units and residential care units.

Business­segment­revenue­amounted­to­SEK­79m­(39),­of­which­rental­ income­was­SEK­36m­(39).­Operating­profit­was­SEK­12m­(3).­Net­rental­income­for­project­properties­was­SEK­14m­

(14).­Gains­from­property­sales­amounted­to­SEK­10m­(-).­Cash­flow­was­burdened­by­investments­totaling­SEK­53m­(102).Within­the­Dalénum­area­on­Lidingö,­the­occupancy­rate­

in­the­buildings­that­will­not­be­demolished­is­85­percent.­Within­the­Bolinder­area­in­Kallhäll,­Järfälla,­the­occupancy­rate­is­87­percent­in­the­buildings­that­will­not­be­demol-ished.

The production of a rental project with an external orderer­in­the­Dalénum­area­consisting­of­146­residential­

units­was­started­during­the­second­quarter.­Occupancy­is­planned­for­fall­2015.­In­April,­ JM­was­allocated­ land­ for­ 122­ rental­ units­ in­

Bredäng,­Stockholm.­After the end of the reporting period, JM agreed on the

sale of a senior housing project that is under construction in­ Sköndal,­ south­ of­ Stockholm.­The­ deal­ is­worth­ SEK­211m.­The­project­will­consist­of­108­residential­units.­Rev-enue and profit from the transaction will be reported on an ongoing­ basis­ during­ the­ period­ 2013-2014.­Occupancy­will occur when the project is completed, which is planned for­the­second­quarter­of­2014.

21 19

1518

0

2

4

6

8

10

0

10

20

30

40

50

Q22010

Q4 Q22011

Q4 Q22012

Q4 Q22013

Operating­profit­per­quarter­(SEK­m) 12-month­period­margin­(%)

SEK m %OPERATING PROFIT AND OPERATING MARGIN

JM PRODUCTION

16

-49

-23

49

-100

-50

0

50

100

150

Q22010

Q4 Q22011

Q4 Q22012

Q4 Q22013

Cash flow per quarter 12-month­period

CASH­FLOWJM PRODUCTIONSEK m

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 310

JM PRODUCTION The JM Production business segment carries out construction work for external and internal customers in the Greater Stockholm area.

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 1) 889 965 518 510 1,930 2,006Operating profit 30 29 18 15 72 71Operating­margin­(%) 3.4 3.0 3.5 2.9 3.7 3.5Operating cash flow 43 –6 49 –23 87 38Number of employees 432 479 459

1) Of which internal 251 327 141 182 619 695

Demand on the contracting market in Stockholm continues to­be­good.­Both­the­building­and­civil­engineering­markets­are stable, although there are many actors competing for the­assignments.

Orders are good in the business segment, with a large number­of­projects­in­current­production.­

The business segment’s income decreased to SEK 889m­(965)­which­is­attributable­to­lower­activity­in­the­civil­engineering­sector­at­the­beginning­of­the­year.­Operating­profit­was­SEK­30m­(29)­and­the­operating­margin­was­3.4­percent­(3.0).­

Cash flow was strengthened by a temporary decrease in­working­capital.

The business segment received a number of assign-ments during the quarter, of which the largest was an engi-neering project in Norra Djurgårdsstaden for the City of Stockholm.

The largest projects currently underway include the two phases­ of­ the­ new­ E18­motorway­ between­ Hjulsta­ and­

Kista­(Swedish­Transport­Administration),­new­­production­of­ a­ cogeneration­ plant­ in­ Stockholm­ (Fortum­ Värme),­new production of two office buildings in Frösunda, Solna (Vasakronan),­ a­ collaborative­ contract­ for­ rebuilding­ a­school­in­Stockholm­(SISAB),­a­renovation­project­in­cen-tral­Stockholm­(Praktikertjänst),­additions­to­baggage­han-dling­at­Arlanda­(Swedavia),­track­work­for­the­expansion­of­ railway­ tracks­ in­Bromma­(Storstockholms­Lokaltrafik)­and an engineering project for future track work in Rosers-berg­(Swedish­Transport­Administration).­In­addition,­pre-paratory work for the renovation of Slussen for the City of Stockholm­is­underway.

The business segment is carrying out new production of apartment buildings in Bromma and site work within the Dalénum­area­on­Lidingö­ for­ JM­Residential­Stockholm.­In addition, the quays in the Liljeholmen area are being extended­and­ completed­ for­ use.­A­ senior­ housing­proj-ect is also being constructed in Sköndal for JM Property Development.

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 11

CONDENSED CONSOLIDATED INCOME STATEMENT 1)

January–June April–June July–June Full-yearSEK m 2013 2012 2013 2012 2012/2013 2012

Revenue 6,094 5,933 3,396 2,946 12,641 12,480Production and operating costs –5,078 –4,875 –2,830 –2,403 –10,476 –10,273Gross profit 1,016 1,058 566 543 2,165 2,207Selling and administrative expenses –399 –407 –216 –221 –730 –738Gains on the sale of properties 21 0 - - 21 0Impairment losses on properties - - - - –95 –95Operating profit 638 651 350 322 1,361 1,374Financial income and expenses –29 –25 –14 –12 –60 –56Profit before tax 609 626 336 310 1,301 1,318Taxes –152 –172 –87 –83 –337 –357­Net profit for the period 457 454 249 227 964 961

Other comprehensive incomeItems that will be reclassified to profit/lossTranslation differences from the translation of international operations –30 1 14 –1 –33 –2Items that will not be reclassified under profit/lossRevaluation of defined-benefit pensions - - - - –62 –62Tax attributable to other comprehensive income - - - - 1 1Comprehensive income for the period 427 455 263 226 870 898Net profit for the period attributable to shareholders of Parent Company 457 454 249 227 964 961Comprehensive income for the period attributable to shareholders of Parent Company 427 455 263 226 870 898Earnings per share 2), basic, attributable to shareholders of the­Parent­Company­(SEK)­ 5.70 5.50 3.20 2.70 12.00 11.70Earnings per share 2), diluted, attributable to shareholders of the­Parent­Company­(SEK)­ 5.70 5.40 3.10 2.70 12.00 11.60

Number of outstanding shares at end of period 78,839,103 82,401,516 78,839,103 82,401,516 78,839,103 80,494,186Average number of shares, basic 79,696,592 83,200,784 79,253,784 83,017,903 80,338,745 82,414,682Average number of shares, diluted 80,328,497 84,254,353 79,862,691 84,041,177 80,997,081 83,298,8321) Defined-benefit pension plans have been restated, see pages 19-20.2) Net profit for the period.

CONDENSED CONSOLIDATED BALANCE SHEET 1)

SEK m 06-30-2013 06-30-2012 12-31-2012

ASSETSNon-current assets 241 311 254Project properties 889 984 933Development properties 6,314 5,939 5,769Participations­in­tenant-owners­associations,­etc. 439 147 214Current receivables 2) 2,211 2,154 1,911Cash and cash equivalents 1,607 1,767 2,475Total current assets 11,460 10,991 11,302Total assets 11,701 11,302 11,556

EQUITY AND LIABILITIES 3)

Shareholders’ equity 4,030 4,178 4,393Long-term interest-bearing liabilities 288 332 296Other long-term liabilities 171 163 100Long-term provisions 2,166 2,326 2,232Total long-term liabilities 2,625 2,821 2,628Current interest-bearing liabilities 692 742 581Other current liabilities 4,248 3,460 3,846Current provisions 106 101 108Total current liabilities 5,046 4,303 4,535Total equity and liabilities 11,701 11,302 11,556Pledged assets 588 497 486Contingent liabilities 5,839 5,204 6,0111) Defined-benefit pension plans have been restated, see pages 19-20.

2) Of which receivables from property sales - 0 03) Of which liabilities for property acquisition 933 513 748

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 312

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYJanuary–June Full-year

SEK m 2013 2012 2012

Opening balance at the beginning of the year 4,393 4,598 4,598Effect of change in accounting principle, defined-benefit pensions - –213 –213Total comprehensive income for the period 427 455 898Dividend –537 –542 –542Conversion of convertible loan 12 4 10Equity component of convertible debentures 1 1 1Share-based payments regulated with equity instruments - - 0Buy-back of shares –266 –125 –359Closing balance at the end of the period 4,030 4,178 4,393

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

Cash flow from operating activities before change in working capital 106 442 38 251 789 1,125Investment­in­development­properties,­etc.1) –1,794 –791 –805 –446 –2,765 –1,762Payment­on­account­for­development­properties,­etc.2) 1,232 643 712 265 2,425 1,836Investment in project properties –41 –123 –32 –58 –93 –175Sale of project properties 37 - 0 - 37 0Change in current liabilities/receivables 273­3) –309 209­3) –152 537 –45

Cash flow from operating activities –187 –138 122 –140 930 979

Cash flow from investing activities 2 –2 2 –2 2 –2Loans raised 146 204 16 167 174 232Amortization­of­debt –25 –67 –25 –60 –228 –270Buy-back of shares –266 –125 –125 –125 –500 –359Dividend –537 –542 –537 –542 –537 –542

Cash flow from financing activities –682 –530 –671 –560 –1,091 –939

Cash flow for the period –867 –670 –547 –702 –159 38

Cash and cash equivalents at end of the period 1,607 1,767 1,607 1,767 1,607 2,475

1) Of which investment in participations in tenant-owners associations and freehold residential units –908 –216 –517 –82 –1,432 –740

2) Of which sale of participations in tenant-owners associations and freehold residential units 681 182 408 103 1,035 536

3) Of which SEK 167m refers to paid tax attributable to a ruling by the Administrative Court of Appeals for the years 2005 and 2006.

KEY RATIOSJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

Operating margin 10.5 11.0 10.3 10.9 10.8 11.0Pre-tax return on capital employed 23.1 23.0Return on equity 23.5 21.9Debt/equity­ratio­(x) 0.1 - 0.1 - -Equity/assets ratio 34 37 34 37 38

ACCOUNTING PRINCIPLES

This interim report for the first six months was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The consolidated accounts were prepared in accordance with the Interna-tional­ Financial­ Reporting­ Standards­ (IFRS).­ Since­ the­Parent Company is an enterprise within the EU, only EU-approved­IFRS­will­be­applied.­The accounting policies applied in this interim report are described­ in­ Annual­ Report­ 2012,­ pages­ 64-67.­ As­ of­January­1,­2013,­JM­applies­ the­new­standard,­ IFRS 13

Fair Value Measurement and amendments to IAS 1 Pre-sentation of Financial Statements and IAS 19 Employee Benefits.­Amendments­to­IAS­1­affected­the­presentation­of other comprehensive income, and amendments to IAS 19­affected­the­accounting­of­defined-benefit­pensions­as­described­on­pages­19-20.­Some­additional­notes­about­financial­ instruments­ have­ been­ added.­ The­ accounting­principles and methods of calculation for the Group are otherwise the same as those applied in the annual report for­the­previous­year.

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 13

REVENUE BY COUNTRYJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

Sweden 4,918 5,040 2,619 2,512 9,860 9,982Norway 1,194 1,161 678 585 2,777 2,744Denmark 11 67 5 35 63 119Finland 58 60 31 37 145 147Belgium 63 68 36 39 137 142Restatement JM International 1) –150 –463 27 –262 –341 –654Total 6,094 5,933 3,396 2,946 12,641 12,480

REVENUE BY BUSINESS SEGMENTJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 2,701 2,790 1,390 1,376 5,502 5,591JM Residential Sweden 1,500 1,573 796 790 2,930 3,003JM International 1,326 1,356 750 696 3,122 3,152JM Property Development 79 39 56 18 117 77JM Production 889 965 518 510 1,930 2,006Elimination –251 –327 –141 –182 –619 –695Total­(segment­reporting) 6,244 6,396 3,369 3,208 12,982 13,134Restatement JM International 1) –150 –463 27 –262 –341 –654Total 6,094 5,933 3,396 2,946 12,641 12,480

OPERATING PROFIT BY BUSINESS SEGMENTJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 531 483 284 239 1,089 1,041JM Residential Sweden 113 119 59 60 225 231JM International 52 66 28 34 167 181JM Property Development 12 3 1 2 –74 –83JM Production 30 29 18 15 72 71Group-wide expenses –29 –26 –16 –13 –46 –43Total­(segment­reporting) 709 674 374 337 1,433 1,398Restatement JM International 1) –71 –23 –24 –15 –72 –24Total 638 651 350 322 1,361 1,374

OPERATING MARGIN BY BUSINESS SEGMENT January–June April–June July–June Full-year

% 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 19.7 17.3 20.4 17.4 19.8 18.6JM Residential Sweden 7.5 7.6 7.4 7.6 7.7 7.7JM International 3.9 4.9 3.7 4.9 5.3 5.7JM Production 3.4 3.0 3.5 2.9 3.7 3.5

AVERAGE OPERATING CAPITAL BY BUSINESS SEGMENT July–June Full-year

SEK m 2012/2013 2012

JM Residential Stockholm 2,672 2,406JM Residential Sweden 1,516 1,490JM International 2,208 2,202JM Property Development 960 939

RETURN ON OPERATING CAPITAL BY BUSINESS SEGMENT July–June Full-year

% 2012/2013 2012

JM Residential Stockholm 40.7 43.3JM Residential Sweden 14.8 15.5JM International 7.6 8.2JM Property Development –7.7 –8.8

1)Effect of restatement on revenue and profit and loss according to IFRIC 15 in relation to segment reporting.

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 314

OPERATING CASH FLOW BY BUSINESS SEGMENTJanuary–June April–June July–June Full-year

SEK m 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 301 479 300 211 873 1,051JM Residential Sweden –17 49 –58 4 177 243JM International 21 –217 54 –211 312 74JM Property Development 18 –99 39 –37 –44 –161JM Production 43 –6 49 –23 87 38

DEVELOPMENT PROPERTIES BY BUSINESS SEGMENTCarrying amount, SEK m 06-30-2013 06-30-2012 12-31-2012

JM Residential Stockholm 3,267 2,741 2,904JM Residential Sweden 1,421 1,465 1,333JM International 1,530 1,654 1,454JM Property Development 39 61 61JM Production 57 18 17Total 6,314 5,939 5,769

AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENTNumber 06-30-2013 06-30-2012 12-31-2012

JM Residential Stockholm 11,100 11,500 10,900JM Residential Sweden 9,300 9,500 9,200JM International 7,100 6,700 6,500JM­Property­Development­(rental­units­and­residential­care­units) 700Total 28,200 27,700 26,600

Of­which,­recognized­on­the­balance­sheet­(development­properties)JM Residential Stockholm 8,100 7,200 7,400JM Residential Sweden 5,800 5,650 5,700JM International 4,400 4,700 4,300JM­Property­Development­(rental­units­and­residential­care­units) 100Total 18,400 17,550 17,400

RESIDENTIAL UNITS SOLD BY BUSINESS SEGMENTJanuary–June April–June July–June Full-year

Number 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 694 560 354 252 1,441 1,307JM Residential Sweden 505 407 268 231 1,000 902JM International 307 314 175 171 736 743JM Property Development (rental units and residential care units) 146 146 146Total 1,652 1,281 943 654 3,323 2,952

HOUSING STARTS BY BUSINESS SEGMENTJanuary–June April–June July–June Full-year

Number 2013 2012 2013 2012 2012/2013 2012

JM Residential Stockholm 648 712 334 367 1,443 1,507JM Residential Sweden 395 363 208 210 811 779JM International 193 331 120 198 739 877JM Property Development (rental units and residential care units) 146 146 146Total 1,382 1,406 808 775 3,139 3,163

RESIDENTIAL UNITS IN CURRENT PRODUCTIONNumber 06-30-2013 06-30-2012 12-31-2012

JM Residential Stockholm 2,492 3,032 3,071JM Residential Sweden 1,596 1,533 1,492JM International 1,291 1,204 1,425JM­Property­Development­(rental­units­and­residential­care­units) 254Total 5,633 5,769 5,988

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 15

PROJECT PROPERTIES, GROUPCarrying amount, SEK m 06-30-2013 06-30-2012 12-31-2012

Properties under development 582 754 587Completed rental units and residential care units 270 150 271Completed office buildings 37 80 75Total 889 984 933

DEVELOPMENT PROPERTIES, GROUPJanuary–June April-June July-June Full-year

Carrying amount, SEK m 2013 2012 2013 2012 2012/2013 2012

Opening balance at beginning of period 5,769 5,816 6,224 5,798 5,939 5,816New purchases 1,052 585 266 307 1,726 1,259Transferred to production –504 –461 –263 –162 –1,343 –1,300Other –3 –1 87 –4 –8 –6Closing balance at the end of the period 6,314 5,939 6,314 5,939 6,314 5,769

PARENT COMPANY

CONDENSED INCOME STATEMENT, PARENT COMPANYJanuary–June Full-year

SEK m 2013 2012 2012

Net sales 4,229 4,402 8,695Production and operating costs –3,377 –3,570 –7,059Gross profit 852 832 1,636Selling and administrative expenses –265 –275 –456Gains on the sale of properties - 0 0Impairment losses on properties - - –95Operating profit 587 557 1,085Financial income and expenses 39 28 23Profit before appropriations and tax 626 585 1,108Appropriations - - –152Profit before tax 626 585 956Taxes –312­1)­ –146 –297Net profit for the period 314 439 6591) Of which SEK 167m refers to paid tax attributable to a ruling by the Administrative Court of Appeals in May for

the years 2005 and 2006. The proceedings referred to impairment losses on shares in Group companies, which the Administrative Court of Appeals ruled to be non-deductible. JM had made full provisions in the consolidated accounts for a negative outcome.

CONDENSED BALANCE SHEET, PARENT COMPANYSEK m 06-30-2013 06-30-2012 12-31-2012

AssetsNon-current assets 1,342 1,220 1,217Current assets 7,598 8,767 9,226Total assets 8,940 9,987 10,443Equity and liabilities Shareholders’ equity 2,668 3,142 3,134Untaxed reserves 1,313 1,092 1,313Provisions 855 917 842Long-term liabilities 197 262 200Current liabilities 3,907 4,574 4,954Total equity and liabilities 8,940 9,987 10,443Pledged assets 169 169 169Contingent liabilities 6,495 6,040 6,729

Investments­in­properties­totaled­SEK­196m­(275).

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 316

GROUP

FIVE-YEAR OVERVIEW 1)

SEK m 2012 2011 2010 2009 2008

Revenue 12,480 12,001 9,136 9,620 12,229Operating profit 1,374 1,513 907 646 1,083Profit before tax 1,318 1,463 840 529 1,052Total assets 11,556 11,296 9,893 9,887 10,055Cash flow from operating activities 979 733 42 1,124 101Interest-bearing­net­liabilities­(+)/receivables­(–) –667 –970 –730 –189 842Operating­margin­(%) 11.0 12.6 9.9 6.7 8.9Return­on­equity­(%) 20.7 24.5 15.7 10.6 22.9Equity/assets­ratio­(%) 38 41 40 37 32Earnings­per­share­(SEK) 11.70 12.50 7.10 4.40 9.50Dividend­per­share­(SEK) 6.75­2) 6.50­2) 4.50 2.50­ 0Number of available building rights 26,600 27,200 27,500 27,900 31,000Number of residential units sold 2,952 3,112 3,276 3,291 1,871Number of housing starts 3,163 3,629 3,404 2,150 1,829Number of residential units in current production 5,988 6,401 5,431 3,744 5,118

1) Financial year 2008 and earlier years are not restated according to IFRIC 15.2) Board proposal.

Stockholm,­July­17,­2013JM­AB­(publ)

The Board of Directors and the CEO certify that the semi-annual report gives a true and fair view of the Parent Company's and the Group's operations, position and results and describes the substantial risks and uncertainties faced by the Parent Company­and­the­companies­included­in­the­Group.

Lars LundquistChairman of the Board

Kaj-Gustaf Bergh Johan Bergman Anders Narvinger Member Member Member

Eva Nygren Kia Orback Pettersson Åsa Söderström Jerring Member Member Member

Peter Skogert Johan Skoglund Johan Wegin Employee- Member Employee- elected CEO elected

The company's auditors did not review this interim report.

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 17

GROUP

QUARTERLY OVERVIEWSEK m 2013 2012

INCOME STATEMENT Q2 Q1 Q4 Q3 Q2 Q1Revenue 3,396 2,698 3,439 3,108 2,946 2,987Production and operating costs –2,830 –2,248 –2,800 –2,598 –2,403 –2,472Gross profit 566 450 639 510 543 515Selling and administrative expenses –216 –183 –180 –151 –221 –186Gains on the sale of properties - 21 - - - 0Impairment losses on properties - - –95 - - -Operating profit 350 288 364 359 322 329Financial income and expenses –14 –15 –14 –17 –12 –13Profit before tax 336 273 350 342 310 316Taxes –87 –65 –91 –94 –83 –89Net profit for the period 249 208 259 248 227 227

BALANCE SHEET 06-30 03-31 12-31 09-30 06-30 03-31ASSETSNon-current assets 241 243 254 296 311 312Project properties 889 906 933 1,000 984 925Development properties 6,314 6,224 5,769 5,722 5,939 5,798Participations­in­tenant-owners­associations,etc. 439 327 214 193 147 168Current receivables 2,211 1,906 1,911 1,889 2,154 1,860Cash and cash equivalents 1,607 2,153 2,475 2,022 1,767 2,469Total current assets 11,460 11,516 11,302 10,826 10,991 11,220Total assets 11,701 11,759 11,556 11,122 11,302 11,532

EQUITY AND LIABILITIESShareholders’ equity 4,030 4,416 4,393 4,281 4,178 4,614Long-term interest-bearing liabilities 288 305 296 293 332 340Other long-term liabilities 171 131 100 109 163 173Long-term provisions 2,166 2,328 2,232 2,346 2,326 2,306Total long-term liabilities 2,625 2,764 2,628 2,748 2,821 2,819Current interest-bearing liabilities 692 684 581 688 742 635Other current liabilities 4,248 3,787 3,846 3,300 3,460 3,359Current provisions 106 108 108 105 101 105Total current liabilities 5,046 4,579 4,535 4,093 4,303 4,099Total equity and liabilities 11,701 11,759 11,556 11,122 11,302 11,532

CASH FLOW STATEMENT Q2 Q1 Q4 Q3 Q2 Q1Cash flow from operating activities 122 –309 675 442 –140 2Cash flow from investing activities 2 0 0 0 –2 0Cash flow from financing activities –671 –11 –225 –184 –560 30Total cash flow for the period –547 –320 450 258 –702 32Cash and cash equivalents at end of the period 1,607 2,153 2,475 2,022 1,767 2,469

INTEREST-BEARING NET LIABILITIES/RECEIVABLES Q2 Q1 Q4 Q3 Q2 Q1Interest-bearing net liabilities(+)/receivables(–) at beginning of period –225 –667 –171 168 –643 –737Change in interest-bearing net liabilities/receivables 545 442 –496 –339 811 94Interest-bearing net liabilities(+)/receivables(–) at end of period 320 –225 –667 –171 168 –643

DEVELOPMENT PROPERTIES Q2 Q1 Q4 Q3 Q2 Q1Opening balance at beginning of period 6,224 5,769 5,722 5,939 5,798 5,816New purchases 266 786 521 153 307 278Transferred to production –263 –241 –503 –336 –162 –299Other 87 –90 29 –34 –4 3Carrying value at end of period 6,314 6,224 5,769 5,722 5,939 5,798

KEY RATIOS Q2 Q1 Q4 Q3 Q2 Q1Operating­margin­(%) 10.3 10.7 10.6 11.6 10.9 11.0Debt/equity­ratio­(x) 0.1 - - - - -Equity/assets­ratio­(%) 34 38 38 39 37 40Earnings­per­share­(SEK) 3.20 2.60 3.20 3.00 2.70 2.70Number of available building rights 28,200 27,800 26,600 27,600 27,700 27,200Number of residential units sold 943 709 1,060 611 654 627Number of housing starts 808 574 998 759 775 631Number of residential units in current production 5,633 5,840 5,988 5,986 5,769 5,786

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 318

BUSINESS SEGMENT

QUARTERLY OVERVIEWSEK m 2013 2012JM RESIDENTIAL STOCKHOLM Q2 Q1 Q4 Q3 Q2 Q1Revenue 1,390 1,311 1,465 1,336 1,376 1,414Operating profit 284 247 309 249 239 244Operating­margin­(%) 20.4 18.8 21.1 18.6 17.4 17.3Average operating capital 2,672 2,541 2,406 2,366 2,394 2,349Return­on­operating­capital­(%)­2) 40.7 41.1 43.3 45.3 45.2 46.4Operating cash flow 300 1 378 194 211 268Carrying amount, development properties 3,267 3,300 2,904 2,544 2,741 2,753Number of available building rights 11,100 11,200 10,900 11,100 11,500 11,500Number of residential units sold 354 340 474 273 252 308Number of housing starts 334 314 344 451 367 345Number of residential units in current production 2,492 2,777 3,071 3,167 3,032 3,059JM RESIDENTIAL SWEDEN Q2 Q1 Q4 Q3 Q2 Q1Revenue 796 704 818 612 790 783Operating profit 1) 59 54 66 46 60 59Operating­margin­(%) 7.4 7.7 8.1 7.5 7.6 7.5Average operating capital 1,516 1,505 1,490 1,467 1,487 1,485Return­on­operating­capital­(%)­2) 14.8 15.0 15.5 16.4 17.7 19.7Operating cash flow –58 41 –19 213 4 45Carrying amount, development properties 1,421 1,351 1,333 1,421 1,465 1,499Number of available building rights 9,300 9,400 9,200 9,400 9,500 9,000Number of residential units sold­3) 268 237 292 203 231 176Number of housing starts 3) 208 187 250 166 210 153Number of residential units in current production 3) 1,596 1,553 1,492 1,668 1,533 1,5711) Of which property sales - 9 - - - -3) Of which rental units - 64 - - - -JM INTERNATIONAL Q2 Q1 Q4 Q3 Q2 Q1Revenue 750 576 1,151 645 696 660Operating profit 1) 28 24 74 41 34 32Operating­margin­(%) 3.7 4.2 6.4 6.4 4.9 4.8Average operating capital 2,208 2,205 2,202 2,188 2,072 1,924Return­on­operating­capital­(%)­2) 7.6 7.8 8.2 8.0 8.3 8.7Operating cash flow 54 –33 193 98 –211 –6Carrying amount, development properties 1,530 1,455 1,454 1,678 1,654 1,485Carrying amount, project properties 32 32 69 73 74 51Number of available building rights 7,100 6,500 6,500 7,100 6,700 6,700Number of residential units sold 175 132 294 135 171 143Number of housing starts 120 73 404 142 198 133Number of residential units in current production 1,291 1,402 1,425 1,151 1,204 1,1561) Of which property sales - 2 - - - -JM PROPERTY DEVELOPMENT Q2 Q1 Q4 Q3 Q2 Q1Revenue 56 23 21 17 18 21Operating profit 1) 1 11 –90 4 2 1Average operating capital 960 960 939 922 893 864Return­on­operating­capital­(%)­2) –7.7 –7.6 –8.8 0.7 0.4 1.7Operating cash flow 39 –21 –50 –12 –37 –62Carrying amount, development properties 39 61 61 61 61 61Carrying amount, project properties 857 874 864 927 910 874Number of available building rights 3) 700 700Number of residential units sold 3) 146 -Number of housing starts 3) 146 -Number of residential units in current production 3) 254 1081) Of which -property sales - 10 - - - 0 -impairment loss on project property - - –95 - - -3) Refers to rental units and residential care units.JM PRODUCTION Q2 Q1 Q4 Q3 Q2 Q1Revenue 518 371 578 463 510 455Operating profit 18 12 28 14 15 14Operating­margin­(%) 3.5 3.2 4.8 3.0 2.9 3.1Operating cash flow 49 –6 39 5 –23 17JM OTHER Q2 Q1 Q4 Q3 Q2 Q1Revenue­(elimination) –141 –110 –233 –135 –182 –145Operating­profit­(Group-wide­expenses) –16 –13 –8 –9 –13 –13RESTATEMENT JM INTERNATIONAL Q2 Q1 Q4 Q3 Q2 Q1Revenue 27 –177 –361 170 –262 –201Operating profit –24 –47 –15 14 –15 –82) Calculated on 12-month rolling profits and average capital.

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 19

GROUP

EFFECTS OF TRANSITION IN 2012 INCOME STATEMENT AND BALANCE SHEET ACCORDING TO IAS 19As of January 1, 2013, changes to the accounting of defined-benefit pension plans in accordance with IAS 19 are applied. The estimated value of JM's pension obligations is entirely recognized as a liability in the consolidated balance sheet and the transition has a negative effect on consolidated equity. See the restatement of full-year 2012 and each quarter in the tables below.

SEK m

INCOME STATEMENTJan–Dec

2012Re-

statement

Restated Jan–Dec

2012

Net profit for the year 961 - 961Other comprehensive incomeActuarial gains/losses including special employer's contribution and deferred tax - –61 –61Translation differences –2 - –2

Total comprehensive income for the year 959 –61 898

BALANCE SHEET 12-31-2012Re-

statement Restated

12-31-2012 12-31-2011Re-

statement Restated

01-01-2012

ASSETSNon-current assets 254 - 254 315 - 315Current assets 11,302 - 11,302 10,981 - 10,981Total assets 11,556 - 11,556 11,296 - 11,296

EQUITY AND LIABILITIESShareholders’ equity 4,667 –274 4,393 4,598 –213 4,385Long-term interest-bearing liabilities 296 - 296 293 - 293Other long-term liabilities 100 - 100 172 - 172Long-term provisions1) 2,026 206 2,232 2,123 157 2,280Total long-term liabilities 2,422 206 2,628 2,588 157 2,745Current interest-bearing liabilities 581 - 581 566 - 566Other current liabilities 2) 3,778 68 3,846 3,440 56 3,496Current provisions 108 - 108 104 - 104Total current liabilities 4,467 68 4,535 4,110 56 4,166Total equity and liabilities 11,556 - 11,556 11,296 - 11,296

1) Of which provisions for pensions 283 2331) Of which deferred tax liability –77 –761) Long-term provisions 206 1572) Refers to special employer's contribution, 24.26% of the change in provisions for pensions

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Jan–Dec 2012

Re- statement

Restated Jan–Dec

2012

Opening balance at the beginning of the year 4,598 - 4,598Effect­of­change­in­accounting­principle,­IAS­19 - –213 –213Total comprehensive income for the year 959 –61 898Dividend –542 - –542Conversion convertible loan 10 - 10Equity component of convertible debentures 1 - 1Share-based payments regulated with equity instruments 0 - 0Buy-back of shares –359 - –359

Closing balance on December 31 4,667 –274 4,393

INTEREST-BEARING NET LIABILITIES/RECEIVABLESJan–Dec

2012Re-

statement

Restated Jan–Dec

2012

Interest-bearing net liabilities (+)/receivables (–) at beginning of period –970 233 –737Change in interest-bearing net liabilities/receivables 20 50 70Interest-bearing net liabilities (+)/receivables (–), December 31 –950 283 –667

KEY RATIOS 12-31-2012Restated

12-31-2012 12-31-2011Restated

01-01-2012

Equity/assets­ratio­(%) 40 38 41 39

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 320

GROUP

EFFECTS OF TRANSITION IN 2012 INCOME STATEMENT AND BALANCE SHEET ACCORDING TO IAS 19As of January 1, 2013, changes to the accounting of defined-benefit pension plans in accordance with IAS 19 are applied. The estimated value of JM's pension obligations is entirely recognized as a liability in the consolidated balance sheet and the transition has a negative effect on consolidated equity. See the restatement of full-year 2012 and each quarter in the tables below.

QUARTERLY OVERVIEWSEK m

INCOME STATEMENTQ4

2012Restate-

ment

Re- stated

Q4Q3

2012Restate-

ment

Re- stated

Q3Q2

2012Restate-

ment

Re- stated

Q2Q1

2012Restate-

ment

Re- stated

Q1

Net profit for the period 259 - 259 248 - 248 227 - 227 227 - 227Other comprehensive incomeActuarial gains/losses including special employer's contribution and deferred tax - –61 –61 - - - - - - - - -Translation differences 20 - 20 –23 - –23 –1 - –1 2 - 2Comprehensive income for the period 279 –61 218 225 - 225 226 - 226 229 - 229

BALANCE SHEET12-31-

2012Restate-

ment

Re- stated 12/31

09-30-2012

Restate-ment

Re- stated 09/30

06-30-2012

Restate-ment

Re- stated 06/30

06-30-2012

Restate-ment

Re- stated 03/31

ASSETSNon-current assets 254 - 254 296 - 296 311 - 311 312 - 312Current assets 11,302 - 11,302 10,826 - 10,826 10,991 - 10,991 11,220 - 11,220Total assets 11,556 - 11,556 11,122 - 11,122 11,302 - 11,302 11,532 - 11,532

EQUITY AND LIABILITIESShareholders’ equity 4,667 –274 4,393 4,494 –213 4,281 4,391 –213 4,178 4,827 –213 4,614Long-term interest-bearing liabilities 296 - 296 293 - 293 332 - 332 340 - 340Other long-term liabilities 100 - 100 109 - 109 163 - 163 173 - 173Long-term provisions 1) 2,026 206 2,232 2,189 157 2,346 2,169 157 2,326 2,149 157 2,306Total long-term liabilities 2,422 206 2,628 2,591 157 2,748 2,664 157 2,821 2,662 157 2,819Current interest-bearing liabilities 581 - 581 688 - 688 742 - 742 635 - 635Other current liabilities 2) 3,778 68 3,846 3,244 56 3,300 3,404 56 3,460 3,303 56 3,359Current provisions 108 - 108 105 - 105 101 - 101 105 - 105Total current liabilities 4,467 68 4,535 4,037 56 4,093 4,247 56 4,303 4,043 56 4,099Total equity and liabilities 11,556 - 11,556 11,122 - 11,122 11,302 - 11,302 11,532 - 11,532

1) Of which provisions for pensions 283 233 233 2331) Of which deferred tax liability –77 –76 –76 –761) Long-term provisions 206 157 157 1572) Refers to special employer's contribution, 24.26% of the change in provisions for pensions.

INTEREST-BEARING NET LIABILITIES/RECEIVABLES

Q4 2012

Restate-ment

Re- stated

Q4Q3

2012Restate-

ment

Re- stated

Q3Q2

2012Restate-

ment

Re- stated

Q2Q1

2012Restate-

ment

Re- stated

Q1

Interest-bearing net liabilities(+)/receivables(–) at beginning of period –404 233 –171 –65 233 168 –876 233 –643 –970 233 –737Change in interest-bearing net liabilities/receivables –546 50 –496 –339 - –339 811 - 811 94 - 94Interest-bearing net liabilities(+)/ receivables(–) at end of period –950 283 –667 –404 233 –171 –65 233 168 –876 233 –643

KEY RATIOSQ4

2012

Re- stated

Q4Q3

2012

Re- stated

Q3Q2

2012

Re- stated

Q2Q1

2012

Re- stated

Q1

Equity/assets­ratio­(%) 40 38 40 39 39 37 42 40

J M G R O U P I N T E R I M R E P O R T J A N U A R Y – J U N E 2 0 1 3 21

JM IN BRIEF

BUSINESS CONCEPT

To create attractive living and working environments that satisfy­individual­needs­both­today­and­in­the­future.

VISION

JM­creates­houses­where­people­feel­at­home.

BUSINESS

JM is one of the leading developers of housing and resi-dential­areas­in­the­Nordic­region.

Operations focus on new production of homes in attrac-tive locations, with the main focus on expanding metropoli-tan areas and university towns in Sweden, Norway, Den-mark,­Finland­and­Belgium.­We­are­also­ involved­ in­ the­project development of commercial premises and contract work,­primarily­in­the­Greater­Stockholm­area.­

JM should promote long-term quality and environmental management­in­all­its­operations.Annual­ sales­ total­ approximately­ SEK­ 13bn­ and­ the­

company­has­around­2,200­employees.JM AB is a public limited company listed on NASDAQ

OMX­Stockholm,­Mid­Cap­segment.

FINANCIAL TARGETS AND DIVIDENDS POLICY

The­ operating­ margin­ should­ amount­ to­ 10­ percent,­ of­which­gains­from­property­sales­are­1-2­percent.­The­vis-ible­equity­ratio­should­amount­to­35­percent­over­a­busi-ness­cycle.

Over time, the dividend should reflect the earnings trend in total operating activities and over a business cycle on average­ correspond­ to­ 50­ percent­ of­ consolidated­ profit­after­ tax.­Capital­gains­ from­property­sales­are­a­natural­part of JM’s project development operations and therefore are­included­in­the­calculation­of­dividends.

DISCLOSURES

JM discloses the information provided herein pur-suant to the Securities Markets Act and/or the Financial­Instruments­Trading­Act.­The­information­was­submitted­ for­publication­at­8:00­AM­on­July­17,­2013.

FOR MORE INFORMATION PLEASE CONTACT:

Claes­Magnus­Åkesson,­CFO,­Head­of­IRTel.­+46­8­782­89­71

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

October 24, 2013Interim­report­January-September­2013

February 12, 2014Year-end­Report­2013

April 24, 2014Interim­report­January-March­2014­and­ 2014­AGM

PRESS RELEASES, Q2

6/28/2013 Conversion of Convertible debentures and war-rants­into­shares­in­JM­AB­(publ)­

6/24/2013 JM acquires Ceremonien, a property in Nockeby-hov, Stockholm

6/11/2013 JM acquiring building rights in Mölndal, Gothen-burg

5/3/2013 Disclosure­of­major­shareholding­in­JM­AB­(publ)­

4/26/2013 Annual General Meeting - JM AB

4/26/2013JM's Board of Directors resolves to buy back shares

4/25/2013 Interim­report­January-March­2013

JM's annual reports are available atwww.jm.se/investors

JM AB (publ)Mailing­address­­ SE-169­82­StockholmStreet­address­­ Gustav­III:s­boulevard­64,­SolnaTelephone­ +46­8­782­87­00Fax­ +46­8­782­86­00Comp.Reg.­No.­ 556045-2103Website­­ www.jm.se