Peab Ab Class B · OMXSTO:PEAB_B

Peab Ab Class B — Q4 2020 Earnings Presentation

38 slides from Peab Ab Class B's earnings presentation, Feb 4, 2021

  1. Slide 1: Q4 January - December 2020

    Q4 January - December 2020 February 4, 2020 GÅRDA VESTA Gothenburg 1

  2. Slide 2: Stable market outlook

    MARKET OUTLOOK Stable market outlook Total construction and civil engineering investments, new and renovations 2020 2021 2022 Sweden → (↘) → ↗ 2020 2021 2022 Norway ↗ (→) → → 2020 2021 2022 Finland → (↘) → (↘) ↗(→) Source: Navet Analytics AB 2

  3. Slide 3: Housing investments on lower level

    MARKET OUTLOOK Housing investments on lower level Started-up housing investments, new and renovations 2020 2021 2022 Sweden → (↓) ↘ ↗ 2020 2021 2022 Norway ↘ ↘ ↗ 2020 2021 2022 Finland ↘ (↓) ↘ ↑ (↗) Source: Navet Analytics AB 3

  4. Slide 4: Stable outlook for started-up other building construction

    MARKET OUTLOOK Stable outlook for started-up other building construction Started-up other building construction investments, new and renovations 2020 2021 2022 Sweden ↘ ↗ (→) ↗ 2020 2021 2022 Norway ↑ (↗) ↘ (→) → 2020 2021 2022 Finland ↗ (→) → → (↘) Source: Navet Analytics AB 4

  5. Slide 5: Civil engineering supported by public spending

    MARKET OUTLOOK Civil engineering supported by public spending Civil engineering investments 2020 2021 2022 Sweden ↗ (→) ↗ (→) - 2020 2021 2022 Norway ↗ ↑ - 2020 2021 2022 Finland ↗ ↘ - Source: Navet Analytics AB 5

  6. Slide 6: Business area Construction

    Business area Construction TROMSØBADET Tromsø 6

  7. Slide 7: Business area Construction

    Business area Construction Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2020 2019 2020 2019 Net sales 7,448 8,371 26,989 29,416 Operating profit 197 207 663 711 Operating margin, % 2.6 2.5 2.5 2.4 7

  8. Slide 8: Growth in public building construction

    BUSINESS AREA CONSTRUCTION Growth in public building construction Net sales, rolling 12 months 32% 36% Housing Other building construction, private Other building construction, public 32% ALTA ASSISTED LIVNING Alta, Norway 8

  9. Slide 9: Stable level of orders received

    BUSINESS AREA CONSTRUCTION Stable level of orders received Orders received, MSEK 9,000 8,000 7,789 Orders received 7,449 6.6 7,000 6,620 6,269 6,259 6,000 5,000 BSEK (7.8) 4,000 3,000 2,000 1,000 0,000 Q419 Q120 Q220 Q320 Q420 ÄLVDAL SCHOOL Älvdalen 9

  10. Slide 10: Good variation in type of product and geography

    BUSINESS AREA CONSTRUCTION Good variation in type of product and geography New elementary Renovation of rental Construction of new New apartments and school apartments indoor swimming shops (MSEK 210) (MEUR 17) pool (MSEK 106) (MSEK 292) New indoor swimming Apartments and New school Rental pool in a

  11. Slide 11: Good distribution over time

    BUSINESS AREA CONSTRUCTION Good distribution over time Order backlog allocated over time, MSEK 25,000 20,000 15,000 18,948 19,149 28%after coming financial year (30) 10,000 7,392 6,432 5,000 588 977 0,000 Coming financial year Next financial year Thereafter Dec 31, 2019 Dec 31, 2020 11

  12. Slide 12: Business area Civil Engineering

    Business area Civil Engineering E20 Vårgårda-Alingsås 12

  13. Slide 13: Business area Civil Engineering

    Business area Civil Engineering Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2020 2019 2020 2019 Net sales 3,600 3,792 12,843 13,339 Operating profit 131 132 391 367 Operating margin, % 3.6 3.5 3.0 2.8 13

  14. Slide 14: Higher net sales in Infrastructure

    BUSINESS AREA CIVIL ENGINEERING Higher net sales in Infrastructure Net sales, rolling 12 months 32% Local market Operations and 52% maintenance Infrastructure and heavy construction 16% ESKILSTUNA THE LITSDEPOT TRAIN BRIDGE, INDALSÄLVEN Eskilstuna Östersund 14

  15. Slide 15: Stable level of orders received

    BUSINESS AREA CIVIL ENGINEERING Stable level of orders received Orders received, MSEK 4,000 3,679 3,435 3,493 3,500 Orders received 2.7 3,100 3,000 2,724 2,500 2,000 BSEK (3.7) 1,500 1,000 0,500 0,000 Q419 Q120 Q220 Q320 Q420 ROAD E20 Alingsås-Vårgårda 15

  16. Slide 16: Several infrastructure contracts

    BUSINESS AREA CIVIL ENGINEERING Several infrastructure contracts Broadening of Decontamination of Constuction of new Renovation of dock soil highway bridge (MNOK 120) (MSEK 159) (MSEK 140) (MSEK 329) Decontamination Highway 23 of soil outside of New dock in in Norra New bridge in Växjö Bergen Djurgå

  17. Slide 17: Good distribution over time

    BUSINESS AREA CIVIL ENGINEERING Good distribution over time Order backlog allocated over time, MSEK 9,000 7,946 7,826 8,000 40% 7,000 6,000 5,000 3,759 4,000 3,436 after coming 3,000 2,064 financial year (41) 2,000 1,490 1,000 0,000 Coming financial year Next financial year Thereafter 31 dec 2019 31

  18. Slide 18: Business area Industry

    Business area Industry ROAD 109 Ekeby 18

  19. Slide 19: Business area Industry

    Business area Industry Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2020 2019 2020 2019 Net sales 4,929 3,592 18,720 13,339 Operating profit 397 363 1,105 937 Operating margin, % 8.1 10.1 5.9 7.0 19

  20. Slide 20: Growth in Paving and Mineral Aggregates

    BUSINESS AREA INDUSTRY Growth in Paving and Mineral Aggregates Net sales, rolling 12 months 5% 12% Paving Concrete 11% 48% Mineral Aggregates 13% Transportation and Machines 11% Rentals Construction System TINGSTAD TUNNEL Gothenburg 20

  21. Slide 21: Acquisition contributes to higher level of orders received

    BUSINESS AREA INDUSTRY Acquisition contributes to higher level of orders received Orders received, MSEK 4,000 3,503 3,500 Orders received 3,000 2,500 2,175 2,816 2.8 BSEK (1.8) 2,000 1,803 1,500 1,399 1,000 0,500 0,000 Q419 Q120 Q220 Q320 Q420 PRODUCTION FACILITY Malmö 21

  22. Slide 22: Increased expenditures through acquisitions and investments

    BUSINESS AREA INDUSTRY Increased expenditures through acquisitions and investments Capital employed and return on capital employed 12,000 16% 9,780 14% 10,000 9,529 8,822 12% Return on capital 8,000 employed 10% 12.8 6,799 6,399 6,000 8% 6% 4,000 % (14.0) 4% 2,000 2% 0,000 0% Q419 Q120 Q220 Q320 Q42

  23. Slide 23: Business area Project Development

    Business area Project Development CARL BERNER SQUARE Oslo 23

  24. Slide 24: Business area Project Development

    Business area Project Development Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2020 2019 2020 2019 Net sales 1,804 2,684 7,500 9,125 Operating profit 1,195 278 1,669 1,015 Operating margin, % 66.2 10.4 22.3 11.1 of which Housing Development 13.5 10.0 9.6 8.6 The fourth quarter of 2020 includes an effect of

  25. Slide 25: Even level of housing start-ups and continued good sales

    BUSINESS AREA PROJECT DEVELOPMENT Even level of housing start-ups and continued good sales Oct-Dec Oct-Dec Jan-Dec Jan-Dec Number 2020 2019 2020 2019 Housing start-ups 679 538 2,291 2,067 Sold homes 664 755 2,682 2,709 Repurchased homes on the balance sheet at the 222 253 222 253 end of the period 2

  26. Slide 26: Housing Development after the fourth quarter

    BUSINESS AREA PROJECT DEVELOPMENT Housing Development after the fourth quarter Number of homes Homes under in production construction sold 4,014 73% POSEIDON Västerås 26

  27. Slide 27: Capital employed affected by distribution of Annehem Fastigheter and high level of sales

    BUSINESS AREA PROJECT DEVELOPMENT Capital employed affected by distribution of Annehem Fastigheter and high level of sales Capital employed and return on capital employed 18,000 14% 16,679 16,000 12% 13,898 13,521 14,000 13,174 12,189 10% Return on capital 12,000 employed 13.1 10,000 8% 8,000 6% 6,0

  28. Slide 28: The Peab Group

    The Peab Group 28

  29. Slide 29: Segment reporting

    THE GROUP Segment reporting Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2020 2019 2020 2019 Net sales 15,424 15,858 57,417 55,349 Operating profit 1,825 797 3,541 2,610 Operating margin, % 11.8 5.0 6.2* 4.7 *The fourth quarter of 2020 includes an effect from the distribution of Annehem Fastigheter by MSEK

  30. Slide 30: Local presence in all the Nordic countries

    THE GROUP Local presence in all the Nordic countries Net sales, rolling 12 months 16% 71% 12% 1% 30

  31. Slide 31: Stable level of orders received and order backlog

    THE GROUP Stable level of orders received and order backlog Orders received Order backlog Share of projects under MSEK 500 12.2 42.7 85% BSEK (12.1) BSEK (42.5) 31

  32. Slide 32: Strong cash flow in fourth quarter

    THE GROUP Strong cash flow in fourth quarter Cash flow before financing, MSEK 2,000 1,763 1,597 1,683 1,500 1,168 1,095 1,000 0,500 0,000 -0,500 -179 -1,000 -1,059 -1,500 -2,000 -2,500 -2,264 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 32

  33. Slide 33: Improved financial position

    THE GROUP Improved financial position Net debt and debt/equity ratio 8,000 0,7 7,000 0,6 6,000 3,088 1,702 0,5 Net debt 1,404 3.9 5,000 0,4 4,000 1,055 0,3 3,000 2,383 BSEK (7.5) 4,912 0,2 2,000 4,447 4,376 2,818 1,000 0,1 1,803 0,000 0 Q419 Q120 Q220 Q320 Q420 Other debt, MSEK Unsold part of housin

  34. Slide 34: Our financial goals and goal fulfilment in 2020

    THE GROUP Our financial goals and goal fulfilment in 2020 Equity/assets ratio, % Return on equity, % Dividend, % 40 36,2 25 23,1 33,0 32,5 21,3 200 178 35 30,4 19,6 19,6 17,9 28,2 28,8 30,1 20 180 30 25,4 24,9 24,1 160 25 13,1 140 15 12,1 120 96 97 20 9,9 9,2 100 15 10 80 66 65 65 67 61 58 59 10 3,8

  35. Slide 35: New targets as of 2021

    New targets as of 2021 eNPS SCI Most satisfied Best workplace customers always over benchmark always over 75 Zero vision Serious accidents Through a continuously contracting trend Most profitable Operating margin Leader in social Carbon dioxide intensity Carbon dioxide intensity Own production >6 %

  36. Slide 36: Strong financial position and new financial targets

    JAN-DEC 2020 Strong financial position and Ready for new financial targets the next phase • Stable level of orders received, strong cash flow and lower net debt • Very good profit with a positive effect from the distribution of Annehem Fastigheter • Integration of our acquired units is progressing a

  37. Slide 37: CMD +Q1

    CMD +Q1 Capital market day: February 10, 2021 Next quarterly report: May 6, 2021 GOLDFINGER Helsinki 37

  38. Slide 38: Thank you!

    Thank you! =PEAB=

Peab — Q4 2020 Earnings Presentation on 6ix