Project development of JM

Acquisition

Sale/lease

Management

Occupancy

Construction

Conception planning

Pre-construction

Financing

2018-08-13 │ ytf3 │

Financial targets

Targets 2017 2016 2015 2014

Operating margin (%) 10.0 13.9 12.8 11.0 12.4

Dividend, share of profit after tax (%) 50 35 45 53 50

Equity ratio (%) 35 40 40 38 37

1) Started during Q2 2017

2018-08-13 │ ytf4 │

1)

Nor, Täby Park, Täby 132 residential units 1) Leidarkollen, Bergen, Norway 49 residential units 1)Sorgenfri, Malmö 57 residential units 1)

Swedbank Robur Funds 8.6

SEB Investment Management 4.1

Pensionskassan SHB Försäkringsfören. 2.2

AFA Insurance 2.2

Länsförsäkringar Fund Management 2.2

Fourth Swedish National Pension Fund 1.8

Försäkringsbolaget Avanza Pension 1.5

Handelsbanken Funds 1.3

Folksam 1.1

Foreign shareholders 46.9

Others 28.1

Number of shareholders 22,396

Ownership structurePercent of share capital at July 2018

Group Summary 1)

January – June 2018

• Profit before tax decreased to SEK 997m (1,430) 2)

• Earnings per share wereSEK 11.10 (16.50) 2)

• Return on equity was 30.7 percent (41.6) 2)

• Cash flow from operations was SEK -222m (1,294)

2018-07-13 │ ytf7 │

1) According to segment reporting2) Of which SEK 275m from the sale of participations in Småa AB in 2017

Humlelunden, Staffanstorp 33 single-family home

Entréen, Oslo, Norway 75 residential units

Group Summary January – June 2018

• Number of residential units sold 1,099 (1,735)

• Lower level residential units sold – cautious market in Stockholm, particularly new production. Some stabilization during the second quarter

• Number of housing starts 1,417 (1,719)

• Planning to increase the number of housing starts during the second six months in Stockholm, assuming stabilized housing market and stable planning processes

• Residential building rights portfolio 36,000 (34,600)

2018-07-13 │ ytf8 │

Villa Nedergård, Gothenburg 28 residential unitsRadiotorget, Gothenburg 40 residential units

Operating profit

January – June

According to segment reporting, SEK m 2018 2017

JM Residential Stockholm 524 710

JM Residential Sweden 394 339

JM International 136 124

JM Property Development 1 24

JM Construction 0 19

Group-wide expenses -23 -28

Total 1 032 1 188

2018-07-13 │ ytf9 │

Some stabilization of the housing market in Stockholm – stable development on other markets

• The housing market in Stockholm continued to be cautious during the first six months, particularly new production. Some stabilization in the second quarter. In the rest of Sweden demand was primarily stable

• In Norway, the level of activity was good with a slight increase in prices and the housing market in Finland was stable

• In Stockholm customers show strong interest in our projects, but are taking a cautious approach to signing contracts early in the process. However, willingness to sign a contract early in the process increased slightly during the second quarter

• The percentage of sold/reserved residential units in relation to ongoing production 58 % (75) – somewhat below normal level

• A solid financial position gives good acquisition capacity and possibilities to enhance market position

2018-07-13 │ ytf10 │

Residential units in current productionJM Group

30 June 2018

30 June 2017

31 Dec 2017

Number of residential units 1) 7,814 7,641 8,200

Number of residential units sold 3,718 4,720 4,466

Number of residential units reserved 412 681 507

Sold residential units, % 52 65 58

Reserved residential units, % 6 10 7

Sold/reserved residential units, % 58 75 65

Completed production, no. of unsold units 2) 88 91 72

Number of unsold units in the balance sheet 79 67 821) Including rental and residential care units within

JM Property Development – not included in percentage sold/reserved 681 416 5532) After final occupancy according to plan

2018-07-13 │ ytf15 │

JM Residential StockholmJanuary - June Full-year

SEK m 2018 2017 2017

Revenue 3,005 3,718 7,151

Operating profit 1) 524 710 1,438

Operating margin, % 17.4 19.1 20.1

Number of available building rights 13,600 13,000 13,400

Number of residential units in current production 3,387 3,598 3,842

1) Of which property sales 0 6 6

• Cautious market, particularly with regard to new production – some stabilization

• Willingness to sign contract early increased slightly in the second quarter

• Housing starts during the first six months supported by a normal level of reservations

• Residential units available for sale have largely planned occupancy in 2019 and 2020

• Plan for more housing starts during the second six months, assuming stabilized housing market and stable planning processes

• Good profitability

• Cash flow in balance taking into consideration the increase in development properties

2018-07-13 │ ytf16 │

Condor, Danderyd 108 residential units

JM Residential Sweden

• Stable demand

• Slightly slower sales rate

• Stronger profit and margin

• A decrease in working capital had positive impact on cash flow

January - June Full-year

SEK m 2018 2017 2017

Revenue 2,334 2,299 4,309

Operating profit 1) 394 339 669

Operating margin, % 16,9 14,7 15.5

Number of available building rights 10,300 10,000 10,100

Number of residential units in current production 2,280 2 279 2,351

1) Of which property sales 0 - -

2018-07-13 │ ytf17 │

Sjösidan, Lund 92 residential units

JM International

• Good level of activity in Norway with slight increase in prices and stable housing market in Finland

• The low level of housing starts during the first six months is in line with the annual plan, and will increase during the year

• Somewhat improved profit and margin

• Cash flow burdened by investments in development properties

January - June Full-yearSEK m 2018 2017 2017

Revenue 1,574 1,615 3,262of which JM Norway 1,344 1,352 2,777

Operating profit 1) 136 124 271of which JM Norway 127 121 263

Operating margin, % 8.6 7.7 8.3of which JM Norway 9.4 8.9 9.5

Number of available building rights 11,400 10,700 10,500

Number of residential units in current production 1,466 1,348 1,4541) Of which property sales 11 - -

2018-07-13 │ ytf18 │

Visertäjä, Esbo, Finland 39 residential units

JM Property Development

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

• Housing start, in own balance sheet, during the second quarter of rental project Manegen, Täby Park, Täby with 128 apartments

• Ongoing production in four rental projects in JM’s balance sheet:‐ Tjärtunnan, Stureby, 187 apartments ‐ Spaken, Hägernäs, Täby, 136 apartments ‐ Alphyddan, Nacka, 93 student apartments ‐ Alba Lilium, Bredäng, 137 apartments

• 681 rental units and residential care units in current production

January - June Full-yearSEK m 2018 2017 2017

Revenue 30 37 60

Operating profit 1) 1 24 27

Number of available building rights 700 900 800

Number of residential units in current production 681 416 553

1) Of which property sales - 8 8

2018-07-13 │ ytf19 │

Rental unit project Manegen, Täby

JM ConstructionJanuary - June Full-year

SEK m 2018 2017 2017

Revenue 1) 1,467 1,229 2,751

Operating profit 0 19 11

Operating margin, % 0.0 1.5 0.4

1) Of which internal 231 254 525

• Good demand but tough competition

• Good orders

• Increased revenue

• Lower profit and margin – negative revaluations in the Swedish operations

• A long-term project is underway to raise profitability

• Cash flow is burdened by increase in working capital

2018-07-13 │ ytf20 │

Available building rights portfolio

1) Rounded to the nearest hundred2) Of which 700 and 900 building rights for rental units and residential care units3) West region4) East region

No. of building rights 1)

Region 06/30/2018 06/30/2017

Stockholm 14,300 2) 13,900 2)

Malmö/Lund 2,900 3,600

Gothenburg 3) 3,700 3,200

Uppsala 4) 3,700 3,200

Norway 7,900 7,800

Helsinki 3,300 2,700

Belgium 200 200

Total 36,000 34,600

2018-07-13 │ ytf21 │

Increased level of development properties Building rights in Balance Sheet

Jan-Jun

SEK m 2015 2016 2017 2018

Opening balance 6,802 7,067 7,121 7,543

Plus 2,695 1,903 2,017 2,057

Minus -2,430 -1,849 -1,595 -731

Closing balance 7,067 7,121 7,543 8,869

2018-07-13 │ ytf22 │

Project properties

Properties under development 1,100 548 837

Fully developed rental unit properties 1) 224 225 224

Fully developed commercial properties 11 18 13

Total 1,335 791 1,074

SEK m 06/30/2018 06/30/2017 12/31/2017

1) Dalénum, Lidingö, 97 apartments

2018-07-1323 │ │ ytf

Approx. 6 years production in Balance Sheet

No. of building rights 1)

06/30/2018In Balance

SheetHousing

starts 2)Average

period, years 3)

JM Residential Stockholm 8,100 1,144 7.1

JM Residential Sweden 6,400 1,285 5.0

JM International 5,700 877 6.5

JM Property Development 200 265 0.8

Group 20,400 3,571 5.7

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

2018-07-13 │ ytf24 │

269 267

309 309322

0

100

200

300

400

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

79 unsold residential units in Balance Sheet, SEK 322mSEK m

2018-07-13 │ ytf25 │

Cash flow

Cash flow statement, SEK m Q2

2017Q3

2017Q4

2017Q1

2018Q2

2018

From operating activities 1) 2) 3) 293 574 145 -18 -204

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

From financing activities -697 -225 -128 1 -286

Total cash flow for the quarter -407 348 14 -18 -492

Cash and cash equivalentsend of period 2,211 2,557 2,572 2,564 2,078

1) Of which net investment project properties -104 -98 -196 -118 -116

2) Of which net investment development properties -15 6 -489 -318 -255

3) Of which paid tax -121 -93 -48 -261 -137

2018-07-13 │ ytf26 │

According to segment reporting

Components of profit/loss – housing business Percentage of completion method (gross) Q2 2018 (Q1 2018)

Cost-based effectSEK 420m (440)

Revaluation effectSEK 470m (439)+ +

= Profit/loss for the periodSEK 754m (750)

Sales effectSEK -136m (-129)

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

2018-07-13 │ ytf28 │

Revaluation effects – housing business

2018-07-13 │ ytf29 │

Business segment Stockholm Sweden International Total

Q1 2018 194 197 48 439

Q2 2018 183 202 85 470

The net of positive and negative revaluation effects in residential projects during Q2 2018 totaled SEK 470m, with current assessment of market

conditions for the actual forecast period.

SEKm Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Group 367 402 487 439 470

JM today

• Customer focused – strong brand

• 36,000 building rights in attractive locations

• Fundamentally favorable prospects

• Cautious market in Stockholm

• Sustainable urban planning

• Efficient management system

• Investments in digital support

• Strong balance sheet – offers freedom of action

• Well balanced risk profile

2018-07-13 │ ytf30 │

Nor, Täby Park, Täby