Slide 1: Q3 January-September 2023
Q3 January-September 2023 October 27, 2023 RESIDENTIAL HOUSE Vantaa, Finland 1
Slide 2: Continued weak market for housing investments
MARKET OUTLOOK Continued weak market for housing investments Started-up housing investments, new and renovations 2023 2024 2025 Sweden ↓ ↘(↗) ↗(↑) 2023 2024 2025 Norway ↓ ↘ ↗ 2023 2024 2025 Finland ↓ ↘ ↗ Source: Navet 2
Slide 3: Mixed market for other building construction
MARKET OUTLOOK Mixed market for other building construction Started-up other building construction investments, new and renovations 2023 2024 2025 Sweden ↘ ↘ ↗ 2023 2024 2025 Norway ↑ →(↗) →(↗) 2023 2024 2025 Finland ↗(↓) ↘(↗) ↗ Source: Navet 3
Slide 4: Positive outlook for civil engineering investments
MARKET OUTLOOK Positive outlook for civil engineering investments Civil engineering investments 2023 2024 2025 Sweden ↘ ↗ ↗ 2023 2024 2025 Norway ↗ ↗ → 2023 2024 2025 Finland → ↗ → Source: Navet 4
Slide 5: Lower level of investments in the Nordic market
MARKET OUTLOOK Lower level of investments in the Nordic market Total construction and civil engineering investments, new and renovations 2023 2024 2025 Sweden ↓ ↘(→) ↗ 2023 2024 2025 Norway → →(↗) →(↗) 2023 2024 2025 Finland ↘(↓) ↘(→) ↗ Source: Navet 5
Slide 6: Business area Construction
Business area Construction SOLNA SWIMMING POOL Solna 6
Slide 7: Business area Construction
Business area Construction Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Net sales 5,789 6,306 29,081 28,999 Operating profit excl. 96 126 565 629 Mall of Scandinavia Operating margin excl. 1.7 2.0 1.9 2.2 Mall of Scandinavia, % Operating profit 96 126 965 629 Operating margin, % 1.
Slide 8: Weak housing market effects level of orders received and order backlog
BUSINESS AREA CONSTRUCTION Weak housing market effects level of orders received and order backlog Orders received, MSEK 12,000 Order backlog 10,000 9,561 8,000 8,225 5,995 6,926 8,490 6,321 6,563 25.7 BSEK (31.1) 6,000 5,577 4,804 4,000 2,000 0,000 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 BRF Å-
Slide 9: New contracts mainly from public customers
BUSINESS AREA CONSTRUCTION New contracts mainly from public customers Assisted living Swimming pool Greenhouse and facility with Hospital facility visitor centre 108 apartments (MSEK 346) (MEUR 26) (MSEK 376) (MSEK 337) Orsa Hässleholm Gothenburg Vaasa 9
Slide 10: Allocation per product area
BUSINESS AREA CONSTRUCTION Allocation per product area Net sales, rolling 12 months Order backlog, September 30, 2023 Housing Housing 9% 10% Construction Construction maintenance maintenance 7% Sports facilities 9% Sports facilities Industrial 34% Industrial 12% 42% Offices Offices Logistics 12% Log
Slide 11: Business area Civil Engineering
Business area Civil Engineering SUSPENSION BRIDGE Tyresö 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Net sales 3,491 3,584 15,115 14,965 Operating profit 110 118 496 494 Operating margin, % 3.2 3.3 3.3 3.3 12
Slide 13: Stable level of orders received, good order backlog
BUSINESS AREA CIVIL ENGINEERING Stable level of orders received, good order backlog Orders received, MSEK 6,000 4,980 Order backlog 5,000 4,375 4,442 4,000 3,583 3,016 2,904 3,891 3,483 15.1 BSEK (15.5) 3,000 2,618 2,000 1,000 0,000 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 BRIDGE CONSTRUCTION E2
Slide 14: New contracts in the third quarter
BUSINESS AREA CIVIL ENGINEERING New contracts in the third quarter Dock and terminal Wastewater and Road enforcement Bus terminal foundation rainwater pipelines (MSEK 110) (MSEK 115) (MNOK 130) (MSEK 170) Orrskär Malmö Sollefteå Tromsö 14
Slide 15: Allocation per product area
BUSINESS AREA CIVIL ENGINEERING Allocation per product area Net sales, rolling 12 months Order backlog, September 30, 2023 19% Operations and Operations and 24% maintenance 28% maintenance Energy 31% Energy 6% Streets and groundwork Streets and groundwork Ports and sea Ports and sea 7% Industrial In
Slide 16: Business area Industry
Business area Industry LJUNGBYHED AIRPORT Ljungbyhed 16
Slide 17: Business area Industry
Business area Industry Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Net sales 6,780 7,096 20,564 21,433 Operating profit 588 519 769 747 Operating margin, % 8.7 7.3 3.7 3.5 17
Slide 18: Allocation per product area
BUSINESS AREA INDUSTRY Allocation per product area Net sales, rolling 12 months 7% 10% Paving Concrete Mineral Aggregates 9% Transportation and Machines 49% Rentals Construction System 13% 12% 18
Slide 19: Good level of orders received in the third quarter
BUSINESS AREA INDUSTRY Good level of orders received in the third quarter Orders received, MSEK 4,500 4,000 3,835 Order backlog 3,614 4.3 3,500 3,159 3,127 2,914 3,000 2,689 2,500 2,255 2,212 BSEK (4.3) 2,012 2,000 1,500 1,000 0,500 0,000 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 19
Slide 20: More capital tied-up in working capital and investments
BUSINESS AREA INDUSTRY More capital tied-up in working capital and investments Capital employed and return on capital employed* 14,000 12% 11,885 11,805 12,000 10% 10,807 10,957 10,807 10,762 9,764 Return on capital 10,000 9,266 9,376 8% employed 8,000 6,000 6% 6.8 % (8.8) 4% 4,000 2,000 2% 0,000 0%
Slide 21: Business area Project Development
Business area Project Development HYLLIE HOMES Malmö 21
Slide 22: Business area Project Development
Business area Project Development Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Net sales 856 2,234 6,252 8,661 Operating profit 46 265 596 1,127 Operating margin, % 5.4 11.9 9.5 13.0 of which Housing Development 2.9 9.0 8.7 11.5 22
Slide 23: Low level of housing start-ups and sales
BUSINESS AREA PROJECT DEVELOPMENT Low level of housing start-ups and sales Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Total number of housing start-ups 1651 4701 962 2.336 of which tenant-owner associations, ownership 40¹ 428¹ 251 1,810 and residential limited companies of which
Slide 24: Own housing development production
BUSINESS AREA PROJECT DEVELOPMENT Own housing development production 30 sep 30 sep 31 dec Number 2023 2022 2022 Total number of homes under production 4,237 6,107 5,718 of which tenant-owner associations, ownership and 2,879 5,046 4,539 residential limited companies of which in rental apartment pro
Slide 25: Ongoing property projects in Property Development
BUSINESS AREA PROJECT DEVELOPMENT Ongoing property projects in Property Development Total Recognize Rentable Degree investment at Scheduled Level of Type of project Location d value, area, m2 rented, % completion, completion completion, % MSEK MSEK Office building Malmö 7,400 76 288 341 Completed 84
Slide 26: Increased investments and unsold homes tie up capital
BUSINESS AREA PROJECT DEVELOPMENT Increased investments and unsold homes tie up capital Capital employed and return on capital employed* 20,000 18% 18,017 18,000 17,351 16% 16,226 15,632 16,000 14% 13,685 13,523 13,624 13,911 14,173 Return on 14,000 12% capital employed 12,000 10% 10,000 8,000 8% 6%
Slide 27: The Peab Group
The Peab Group 27
Slide 28: Segment reporting
THE GROUP Segment reporting Jul-Sep Jul-Sep Oct 2022- Jan-Dec MSEK 2023 2022 Sep 2023 2022 Net sales 14,736 16,685 60,230 63,135 Operating profit excl. 786 993 2,173 2,741 Mall of Scandinavia Operating margin excl. 5.3 6.0 3.6 4.3 Mall of Scandinavia, % Operating profit 786 993 2,573 2,741 Operating
Slide 29: Good presence in the Nordic region
THE GROUP Good presence in the Nordic region Net sales, rolling 12 months 70% 15% (14) 13% (71) (13) 2% (2) 29
Slide 30: The share of public customers increases
THE GROUP The share of public customers increases Net sales, rolling 12 months Public 53% 47% customers (41) Private (59) customers HIUKKAVAARA ACTIVITY HOUSE Oulu 30
Slide 31: Lower order backlog but continued good risk diversification
THE GROUP Lower order backlog but continued good risk diversification Orders received Order backlog Share of projects under MSEK 500 34.6 41.7 80% BSEK (42.8) BSEK (48.8) (82) 31
Slide 32: Lower level of order backlog
THE GROUP Lower level of order backlog Order backlog allocated over time, MSEK 30,000 24,422 25,000 21,318 20,000 15,000 11,432 12,908 75% after current 10,321 10,030 10,000 financial year (77) 5,000 0,000 Current financial year Coming financial year Thereafter Sep 30, 2022 Sep 30, 2023 32
Slide 33: Working capital and investments charge cash flow
THE GROUP Working capital and investments charge cash flow Cash flow before financing, MSEK 3,000 2,465 2,000 1,000 781 805 450 0,000 -323 -1,000 -897 -908 -1,540 -2,000 -2,321 -3,000 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 33
Slide 34: Net debt affected by investments and working capital
THE GROUP Net debt affected by investments and working capital Net debt and net debt/equity ratio 14,000 0,9 0,8 12,000 0,7 10,000 2,868 Net debt 0,6 2,918 8,000 6,000 2,209 2,612 0,5 0,4 10.2 BSEK (5.9) 1,705 1,768 8,849 0,3 4,000 947 7,255 0,2 4,690 5,372 2,000 1,573 4,628 4,118 3,514 958 0,1 1,44
Slide 35: Target checkpoint
Target checkpoint
Slide 36: Four target areas, nine external targets
Four target areas, nine external targets Most satisfied Best workplace eNPS customers CSI always over benchmark always over 75 Zero vision Serious accidents Through a contracting trend Operating margin Most profitable Leader in social Carbon dioxide Carbon dioxide intensity company >6 % responsibilt
Slide 37: Operating margin over 6 percent
MOST PROFITABLE COMPANY Operating margin over 6 percent Operating margin, Group 7 6.2 Target: 6% 6 5.2 4.8 4.9 4.7 5 4.4 4.5 4.3 4.3 4 3.6 3 2 1 0 *Operating margin exclusive effect of the distribution of Annehem Fastigheter of MSEK 952. ** Operating margin exclusive effect of mall of Scandinavia of
Slide 38: Net debt/equity ratio within interval 0.3-0.7
MOST PROFITABLE COMPANY Net debt/equity ratio within interval 0.3-0.7 Net debt/equity ratio, Group 1,0 0,8 0.7 0,6 0.6 0.5 Target: 0.3-0.7 0,4 0.3 0.3 0,2 0.2 0,2 0.1 0,0 Years 2016-2018 are not translated according to the changed accounting principles for our own housing development projects. 38
Slide 39: Zero vision for workplace accidents
BEST WORKPLACE Zero vision for workplace accidents Serious accidents, rolling 12 months, category 4 60 54 48 48 49 50 43 39 40 40 34 36 33 Target: 32 32 30 30 30 30 28 27 30 27 Contracting 25 26 trend 20 19 20 20 18 16 18 18 18 16 23 21 21 18 19 19 10 16 10 14 14 14 14 14 14 11 0 2020 2021 2022 2023
Slide 40: The market continues to be divided
JAN-SEP 2023 The market continues to be divided • The trend with a weak Nordic housing market continues, while the market for public construction is more positive • Lower level of orders received and order backlog due to low demand on housing projects • Few homes sold and production-starts affect b
Slide 41: Q&A
Q&A
Slide 42: Next report: Year-end report 2023
Q4 Next report: Year-end report 2023 February 2, 2024 Capital Markets Day in Stockholm February 13, 2024 42
Slide 43: Thank you!
Thank you! =PEAB=