102 JM SHARE NEGATIVE SHARE PRICE DEVELOPMENT 2011 SHARE CAPITAL The JM share is listed on NASDAQ OMX Stockholm, Mid Cap segment. Share capital amounts to SEK 83.5m, represented by 83.5 million shares, each with a par value of SEK 1 and equal voting rights. Each trading block consists of 200 shares. GOAL FOR SHAREHOLDER VALUE JM’s shareholders will receive a higher total return, total of dividend and increased value, than shareholders in companies with a similar risk profile and business activities. SHARE PRICE TREND AND RETURN The JM share was included in the SX252010 Stockholm Household Durables Index of the NASDAQ OMX Nordic through 2011. In 2011 JM’s share price dropped –29 percent, compared with a drop of –42 percent for the SX252010, and a drop of –19 percent for the SX201030, another relevant comparative index for JM. The general index on the OMX Stockholm Stock Exchange, OMX Stockholm_PI, dropped –17 percent in 2011. The highest listed price for the JM share during the year was SEK 176.50 on May 2 and the lowest was SEK 79.75 on September 23. Dividend yield (proposed dividend in relation to the market price at year-end) was 5.8 percent (2.9). Total return in 2011 was –26 percent (30). From 2012, the JM share is included in the SX8630 Stockholm Real Estate Investment & Services Index of the NASDAQ OMX Nordic. Total return, % JM OMX Stockholm Stock Exchange 2011 – 26 –14 Average per year 2007–2011 23 4 DIVIDEND POLICY Over time, the dividend should reflect the earnings trend in total operating activities. The average dividend over a business cycle should correspond to 50 percent of consolidated profit after tax. Capital gains from property sales are a natural part of JM’s project development operations, and are therefore included in the calculation of dividends. The proposed dividend for 2011 amounts to SEK 6.50 (4.50) per share. The strong balance sheet and cash flow enable capital transfer to shareholders in addition to regular dividends. In light of this, the Board of Directors will propose that the Annual General Meeting resolve to authorize the Board of Directors, during the period up until the next Annual General Meeting and on one or more occasions, to make a resolution on buying back shares so that the Company’s holdings do not at any point in time exceed 10 percent of all the Company’s shares. Acquisition should take place on NASDAQ OMX Stockholm. Considering the continued uncertainty in the international financial system, the strategy is to spread out the buybacks on NASDAQ OMX Stockholm until the 2013 Annual General Meeting. The objective of empowering the Board of Directors is to give it greater freedom of action and the possibility to adjust the Company’s capital structure on a continuous basis. Transfer to shareholders, SEKm 2007 2008 2009 2010 2011 Total Dividend 415 489 208 375 1,487 Redemption 1,013 992 2,005 Total 1,428 1,481 208 375 3,492 Total return JM, 2007–2011 2011 2010 2009 2008 2007 2007-01-01 Average, 5 years % – 26 30 186 – 60 –16 23 Index 92 125 96 34 84 100 Shareholders as of December 31, 2011 AMF Försäkring och Fonder Swedbank Robur fonder Nordea fonder AFA Försäkringar Heirloom Asset Management AB SEB fonder and Gamla Livförsäkringsbolaget Enter fonder Handelsbanken fonder Folksam Fourth Swedish National Pension Fund Länsförsäkringar – funds Second Swedish National Pension Fund Skandia fonder Foreign shareholders Other shareholders Total Number of shareholders as of Dec. 31, 2011: 11,661 Number of shares as of Dec. 31, 2011 amounts to 83,530,371 % of shares 11.1 9.3 4.7 4.5 4.1 3.9 3.5 2.6 2.3 1.9 1.3 1.3 0.8 27.2 21.5 100.0 TRADING AND MARKET CAPITALIZATION JM shares were traded for a value of SEK 14.3bn (13.5) in 2011. Average daily trading was about SEK 57m (53). The turnover rate (the liquidity of the share) was 127 percent (129) during the year compared with an average for the entire stock exchange of 96 percent (96). The Company’s market capitalization amounted to SEK 9.3bn (13.1) at year-end. OWNERSHIP STRUCTURE The number of shareholders as of December 31, 2011 was 11,661 (12,968). The ten largest Swedish shareholders accounted for 47.9 percent (51.5) of capital and foreign shareholders for 27.2 percent (18.9). JM ANNUAL REPORT 2011