JM (JM) investor relations material

Strategic direction and market outlook

• New strategy prioritizes cost reduction, standardization, productivity, and optimizing the building rights portfolio to drive profitability and resilience.

• Growth target of 3,800 housing starts by 2028, with 4% annual growth thereafter, and a focus on expanding offerings such as senior housing, rentals, and care homes in existing and new markets.

• Market conditions remain challenging, but forecasts are more optimistic for 2026, with signs of recovery in prime locations and larger apartments.

• The company leverages a strong land bank, expertise across the value chain, and digitalization to capitalize on demographic trends and urbanization.

• Strategic reviews and organizational changes, including merging business units and redesigning development, aim to enhance efficiency and accelerate timelines.

Financial guidance, performance, and targets

• Financial targets include 3,800 housing starts with 4% annual growth, 12% operating margin, and over 20% return on capital employed, replacing the previous return on equity metric.

• Operating margin is expected to remain low through 2026 due to higher costs and legacy inventory, with improvement from 2027 as new projects with better margins are completed.

• Productivity Boost initiative targets SEK 250,000 cost savings per unit by 2026–2030, achieved through standardization, lean design, and digitalization, with full impact expected by 2029.

• Capital turnover improvement and active portfolio management, including land sales and rental conversions, are essential for achieving growth and ROCE targets.

• Dividend policy remains at 50% of net profit over the business cycle, and net debt is targeted below 0.5 times equity.

Sustainability and customer focus

• Ambitious target to reduce project carbon footprint by at least 85% by 2030 compared to 2022, leveraging structural capital, partnerships, and innovative materials.

• All self-developed homes are certified with the Nordic Swan Ecolabel, supporting energy efficiency and regulatory compliance.

• Sustainability initiatives enhance attractiveness to municipalities, investors, and customers, supporting land acquisition and premium pricing.

• Customer satisfaction remains high, with top rankings in post-occupancy surveys and a focus on quality and location.

• Broadened offerings, such as senior housing, rentals, and co-living, address demographic shifts and expand the addressable market by up to 30%.