Interim Report 1 January - 30 June 2002

Interim Report 1 January - 30 June 2002 · Profit after financial items amounted to SEK 416m (1,034) · Property sales of SEK 921m (2,670) generated capital gains of SEK 176m (702), the entire amount of which is included in profit from project development for the first half of 2002. · Profit from project development rose to SEK 470m (355). The project development margin for the last 12 months amounted to 12.1% · Over the past 12 months, return on equity amounted to 19% and earnings per share amounted to SEK 23 · Targets have been set for 2003-2005 with a requirement for increased sales with sustained margins and return Group summary Demand and prices for JM's housing are being maintained at a flat but still satisfactory level in all prioritised markets. Net sales developed largely as anticipated while the profit trend was slightly less favourable due to cost increases in specific projects in Stockholm. A revaluation of these projects has been charged in full against the second quarter. There was also some reduction in profits due to volume effects attributable to delayed detailed development plans for housing projects in Stockholm. Sales of newly developed properties have been carried out with good results but at lower volumes than in the same period last year. Renegotiated leases in JM's portfolio were signed at higher rental levels than in the previous rental period. Over the past 12-month period, return on consolidated equity amounted to 19%. Over the last five calendar years, the average return on equity has been 19%. The Group's return target over a business cycle is 15%. Earnings per share over the last 12 months amounted to SEK 23. "Demand and prices for JM's housing remain stable. We anticipate continued favourable conditions for JM's project development where our high level of ambition remains unchanged." Carl Eric Stålberg, President and CEO SIGNIFICANT EVENTS IN THE FIRST HALF OF 2002 Project development Project development of residential and commercial properties is JM's core business. Undeveloped and developed land is acquired and transformed through construction, conversion or extension into attractive living and working environments. The satisfactory trend for total project development continued with profit growth to SEK 470m (355). The margin in these operations amounted to 10.6% (9.5) for the first half of the year. This margin can fluctuate over the quarters and the sale of the newly developed properties in Frösunda, Stockholm, with a capital gain of SEK 170m, had a major impact in the first half of 2002. The portfolio of building rights corresponds to approximately 26,000 residential units, compared with 27,000 at year-end 2001. The number of housing starts during the first half of the year was 1,250 (1,500). Demand for JM's housing is good and the number of reservations remains high. Slightly weaker demand has been noted for large homes in Stockholm. Sold residential units in the form of signed contacts totalled 1,251 (1,256) in the first half of the year. Both housing starts and sales volumes can vary over time depending on the dates for project starts and the size of individual projects. The somewhat uncertain business climate has led JM to raise its requirements for the proportion of reservations before building starts. This has temporarily reduced the number of starts in addition to the delayed detailed development plans in Stockholm. The number of sold and started residential units is expected to increase in 2002, mainly in the second half of the year. JM has building rights for commercial project development corresponding to approximately 220,000 sq.m. Approximately 40,000 sq.m. is under conversion to attractive residential building rights and the sale of approximately 100,000 sq.m. is planned. Commercial project development continues to be conducted with considerable caution. Management properties JM's portfolio of fully developed management properties is being reduced according to plan. The remaining portfolio will be subject to a high rate of turnover. The operating surplus from property management amounted to SEK 155m (243) for the period. The lower operating surplus was due to property sales of approximately SEK 4 billion in the previous year, which were carried out in line with the Group's strategy to sell fully developed properties down to a remaining level of approximately SEK 2 billion in book value. During the period, properties were sold for SEK 921m (2,670) with a capital gain of SEK 176m (702), the entire amount of which is included in profit from project development. Investments in existing management properties amounted to SEK 263m (388). The rental market for commercial premises weakened in 2001. In the second quarter of 2002, however, greater interest could be noted in JM's premises which are now entirely concentrated to the Stockholm area, primarily the inner city and Danderyd. JM's fully developed property portfolio comprises 190,000 sq.m. (263,000). Vacancies in JM's portfolio of fully developed management properties correspond to 9% (2) of annual rents and 8% (2) of space. At year-end 2001, vacancies amounted to 7% of annual rents and 6% of space. The higher vacancies are mainly explained by the sale of properties with very low vacancies as well as longer lead times from termination to reletting. Major property sales in the first quarter included two newly developed office properties in Frösunda, Stockholm. These were sold to two German property funds for a total of SEK 835m with a combined capital gain of SEK 170m. No major property sales were made in the second quarter. After the end of the period under review, a property was sold for SEK 84m with a capital gain of SEK 30m. Stockholm, 15 August 2002 Carl Eric Stålberg President and CEO This interim report has been reviewed by the company's auditors. Additional information and financial calendar For additional information, please contact Carl Eric Stålberg, President and CEO +46 8 782 88 33 Claes Magnus Åkesson, CFO +46 8 782 89 71 17 October 2002 Interim report for the period January-September 2002 February 2003 Year-end report for 2002 JM AB is a public limited company listed on the Stockholm Stock Exchange. JM has around 2,600 employees in Sweden, Norway, Denmark and Belgium and sales of approximately SEK 9 billion. The company is Sweden's leading housing developer and the core business is project development of residential and commercial properties in central areas of growth markets. JM's operations are characterised by a focus on quality and the environment. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/15/20020815BIT01130/wkr0001.doc Full report http://www.waymaker.net/bitonline/2002/08/15/20020815BIT01130/wkr0002.pdf Full report

About Us

JM is one of the leading developers of housing and residential areas in the Nordic region. Operations focus on new production of homes in attractive locations, with the main focus on expanding metropolitan areas and university towns in Sweden, Norway, Denmark, Finland and Belgium. We are also involved in project development of commercial premises and contract work, primarily in the Greater Stockholm area. JM seeks to promote long-term quality and environmental considerations in all its operations. Annual sales total approximately SEK 17 billion and the company has about 2,500 employees. JM is a public limited company listed on NASDAQ OMX Stockholm, in the Large Cap segment.

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