104 JM SHARE LARGE TRANSFER TO SHAREHOLDERS SHARE CAPITAL The JM share is listed on NASDAQ OMX Stockholm, Mid Cap segment. Share capital amounts to SEK 83.7m, represented by 83.7 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 As of 2012, the JM share is included in the SX8630 Real Estate Investment & Services Index of the OMX Stockholm Stock Exchange. In 2012 JM’s share price increased 4 percent, compared with an increase of 14 percent for the SX8630, and an increase of 17 percent for the SX2300, another relevant comparative index for JM. The general index on the OMX Stockholm Stock Exchange, OMX Stockholm_PI, increased 12 percent in 2012. The highest listed price for the JM share during the year was SEK 140.25 on February 3 and the lowest was SEK 106.75 on November 22. Dividend yield (proposed dividend in relation to the market price at the end of the year) was 5.8 percent (5.8). Total return in 2012 was 9 percent (– 26). Total return, % JM OMX Stockholm Stock Exchange Total return JM, 2003–2012 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2003-01-01 Average, 5 years Average, 10 years 2012 9 17 % 9 – 26 30 186 – 60 –16 94 91 86 – 28 4 17 Average per year 2008–2012 4 3 Average per year 2003–2012 17 13 Index 496 455 615 473 165 416 496 256 134 72 100 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 2012 amounts to SEK 6.75 (6.50) per share. The Board of Directors intends to propose to the Annual General Meeting that the holdings of own shares be eliminated through a decrease in the share capital for appropriations to unrestricted equity. The strong balance sheet and cash flow continue to 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 to 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 shares in the Company. Acquisition should take place on NASDAQ OMX Stockholm. Considering the continued uncertainty in the international financial system, the strategy is to spread out the buy-backs on NASDAQ OMX Stockholm until the 2014 Annual General Meeting. The objective of empowering the Board of Directors is to give it the possibility to adjust the Company’s capital structure on a continuous basis. Transfer to shareholders, SEKm 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Dividend 281 140 196 247 415 489 208 375 542 2,893 Redemption 966 1,002 1,013 992 3,973 Buy-back 154 359 513 Total 435 140 1,162 1,249 1,428 1,481 208 375 901 7,379 % of shares 10.6 10.1 8.0 6.7 5.1 3.8 3.7 2.9 2.3 2.2 22.7 21.9 100.0 Shareholders as of December 31, 2012 Swedbank Robur – funds AMF Försäkring och Fonder Nordea Investment Funds AFA Försäkringar SEB – funds Heirloom Asset Managment AB JM AB Fourth Swedish National Pension Fund Handelsbanken – funds Enter Fonder Foreign shareholders Other shareholders Total Number of shareholders as of Dec. 31, 2012: 10,824 Number of shares as of Dec. 31, 2012 amounts to 83,663,242 TRADING AND MARKET CAPITALIZATION JM shares were traded for a value of SEK 12.8bn (14.3) in 2012. Average daily trading was about SEK 51m (57). The turnover rate (the liquidity of the share) was 126 percent (127). The Company’s market capitalization amounted to SEK 9.3bn (9.3) at the end of the year. OWNERSHIP STRUCTURE The number of shareholders as of December 31, 2012 was 10,824 (11,661). The ten largest Swedish shareholders accounted for 55.2 percent (47.9) of capital and foreign shareholders for 22.7 percent (27.2). J M A N N U A L R E P O R T 2 0 1 2