Peab Ab Class B · OMXSTO:PEAB_B
Peab Ab Class B — H1 2021 Earnings Presentation
46 slides from Peab Ab Class B's earnings presentation, Jul 16, 2021
Slide 1: Q2 January - June 2021
Q2 January - June 2021 July 16, 2021 WALDEMARS TOWER Oslo 1
Slide 2: Stable market prospects
MARKET OUTLOOK Stable market prospects Total construction and civil engineering investments, new and renovations 2021 2022 2023 Sweden ↗ (→) → → 2021 2022 2023 Norway ↗ (→) ↗ ↗ (→) 2021 2022 2023 Finland → ↗ → (↗) Source: Navet Analytics AB 2
Slide 3: Housing investments – strong prospects
MARKET OUTLOOK Housing investments – strong prospects Started-up housing investments, new and renovations 2021 2022 2023 Sweden → (↘) ↗ ↗ 2021 2022 2023 Norway → ↗ ↗ 2021 2022 2023 Finland → (↘) ↗ (↑) ↗ Source: Navet Analytics AB 3
Slide 4: Stable outlook for other building construction
MARKET OUTLOOK Stable outlook for other building construction Started-up other building construction investments, new and renovations 2021 2022 2023 Sweden ↗ ↘ → 2021 2022 2023 Norway ↗ (↘) ↘ (→) → (↘) 2021 2022 2023 Finland → ↗ (→) → Source: Navet Analytics AB 4
Slide 5: Civil engineering investments on a continued high level
MARKET OUTLOOK Civil engineering investments on a continued high level Civil engineering investments 2021 2022 2023 Sweden ↗ ↘ (→) - 2021 2022 2023 Norway ↑ ↗ - 2021 2022 2023 Finland ↘ → - Source: Navet Analytics AB 5
Slide 6: Business area Construction
Business area Construction THE WATER TOWER Järna 6
Slide 7: Business area Construction
Business area Construction Apr-Jun Apr-Jun Jul 2020- Jan-Dec MSEK 2021 2020 Jun 2021 2020 Net sales 6,648 7,123 26,090 26,989 Operating profit 187 183 672 663 Operating margin, % 2.8 2.6 2.6 2.5 7
Slide 8: Stable level of orders received
BUSINESS AREA CONSTRUCTION Stable level of orders received Orders received, MSEK 9,000 8,000 7,789 Order backlog 7,449 6,785 7,029 6,620 26.4 7,000 6,269 6,259 6,088 6,000 5,213 5,000 BSEK (27.0) 4,000 3,000 2,000 1,000 0,000 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 LAPPSKÄRSBERGET Stockholm 8
Slide 9: Good variation in type of product and geography
BUSINESS AREA CONSTRUCTION Good variation in type of product and geography New swimming pool New elementary New homes New hotel facility school (12 MEUR) (190 MNOK) (350 MSEK) (207 MNOK) Swimming pool 179 Hotel in facility in School in apartments in Vesterålen Uddevalla Kautokeino Oulu 9
Slide 10: Split into product area
BUSINESS AREA CONSTRUCTION Split into product area Net sales, rolling 12 months Order backlog, June 30, 2021 6% 6% 9% Housing 6% Housing Construction maintenance Construction maintenance Sports facilities Sports facilities 9% 37% 14% Industrial Industrial Offices 47% Offices Logistics Logistics 6% 3
Slide 11: Business area Civil Engineering
Business area Civil Engineering E45 Gothenburg 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Apr-Jun Apr-Jun Jul 2020- Jan-Dec MSEK 2021 2020 Jun 2021 2020 Net sales 3,743 3,432 13,474 12,843 Operating profit 146 127 421 391 Operating margin, % 3.9 3.7 3.1 3.0 12
Slide 13: Good level of orders received in the second quarter
BUSINESS AREA CIVIL ENGINEERING Good level of orders received in the second quarter Orders received, MSEK 5,000 4,608 4,500 Order backlog 4,000 3,679 14.7 3,498 3,612 3,435 3,493 3,500 3,100 3,000 2,862 2,724 2,500 BSEK (14.2) 2,000 1,500 1,000 0,500 0,000 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q22
Slide 14: Great variation on contracts
BUSINESS AREA CIVIL ENGINEERING Great variation on contracts Railway Road maintenance New container port Two new bridges construction (MSEK 753) (MSEK 249) (MSEK 204) (MSEK 477) Five new Double-track Container terminal Two bridges in contracts outside of in Sundsvall Upplands-Bro Hallsberg 14
Slide 15: Split into product area
BUSINESS AREA CIVIL ENGINEERING Split into product area Net sales, rolling 12 months Order backlog, June 30, 2021 17% Operations and 23% Operations and maintenance maintenance 32% Energy Energy 36% 7% Streets and groundwork Streets and groundwork Ports and sea Ports and sea 8% Industrial Industrial
Slide 16: Business area Industry
Business area Industry BYGGELEMENT’S FACTORY Katrineholm 16
Slide 17: Business area Industry
Business area Industry Apr-Jun Apr-Jun Jul 2020- Jan-Dec MSEK 2021 2020 Jun 2021 2020 Net sales 5,247 5,343 18,613 18,720 Operating profit 339 303 810 1 105 Operating margin, % 6.5 5.7 4.4 5.9 17
Slide 18: Split into product area
BUSINESS AREA INDUSTRY Split into product area Net sales, rolling 12 months 5% 11% Paving Concrete 10% 48% Mineral Aggregates 14% Transportation and Machines 12% Rentals Construction System TINGSTAD TUNNEL Gothenburg 18
Slide 19: Good level of orders received in the second quarter
BUSINESS AREA INDUSTRY Good level of orders received in the second quarter Orders received, MSEK 4,000 3,503 3,500 3,302 Order backlog 2,999 3,000 2,500 2,175 2,816 6.5 BSEK (6.1) 2,000 1,803 1,500 1,399 0,995 1,096 1,000 0,500 0,000 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 19
Slide 20: Second quarter affected by investments and seasonality
BUSINESS AREA INDUSTRY Second quarter affected by investments and seasonality Capital employed and return on capital employed* 12,000 16% 9,780 14% 10,000 9,529 9,388 8,822 8,871 12% Return on capital 8,000 employed 10% 6,399 6,000 8% 6% 8.9 % (12.8) 4,000 4% 2,000 2% 0,000 0% Q120 Q220 Q320 Q420 Q1
Slide 21: Business area Project Development
Business area Project Development WALDEMARS TOWER Oslo 21
Slide 22: Business area Project Development
Business area Project Development Apr-Jun Apr-Jun Jul 2020- Jan-Dec MSEK 2021 2020 Jun 2021 2020 Net sales 1,929 1,977 7,193 7,500 Operating profit 252 138 1 822 1,669 Operating margin, % 13.1 7.0 25.3 22.3 of which Housing Development 11.8 8.3 11.6 9.6 22
Slide 23: Higher level of housing start-ups and continued good sales
BUSINESS AREA PROJECT DEVELOPMENT Higher level of housing start-ups and continued good sales Apr-Jun Apr-Jun Jul 2020- Jan-Dec Number 2021 2020 Jun 2021 2020 Housing start-ups 785 518 2,717 2,291 Sold homes 797 501 2,848 2,682 Repurchased homes on the balance sheet at 200 267 200 222 the end of the
Slide 24: Selection of production-started homes
BUSINESS AREA PROJECT DEVELOPMENT Selection of production-started homes 68 homes in 46 homes in 74 homes in 60 homes in Malmö Stenungsund Tampere Kuopio Brf Hyllie Brf Solgårds- Tampereen Kuopion Homes terrassen 3 Fenderi Lehmushovi 24
Slide 25: Housing Development after the second quarter
BUSINESS AREA PROJECT DEVELOPMENT Housing Development after the second quarter Number of homes Homes under in production construction sold 4,132 76% (4,153) (70) TAMPEREEN FÖRSTI Tampere 25
Slide 26: Rentals on own balance sheet
BUSINESS AREA PROJECT DEVELOPMENT Rentals on own balance sheet Apr-Jun Apr-Jun Jul 2020- Jan-Dec Number of rentals 2021 2020 Jun 2021 2020 Production-started 135 64 751 502 homes Sold homes - - 95 4 Converted to tenant- 56 187 303 228 owner associations Totalt number of homes in production, at 798*
Slide 27: Total number of homes in production
BUSINESS AREA PROJECT DEVELOPMENT Total number of homes in production Number per June 30, 2021 of which (2020) sold Tenant-owner associations, ownership and 4,132 (4,153) 76 % residential limited companies Rentals 798 (445) 66 % Total number 4,930 (4,598) 74 % 27
Slide 28: Larger ongoing property projects in Property Development
BUSINESS AREA PROJECT DEVELOPMENT Larger ongoing property projects in Property Development Recognized Total investment Type of Rentable Degree Timepoint of Level of Location value, at completion, project area, m2 rented, % completion completion, % MSEK MSEK Office Solna 4,300 100 155 194 Q3-2021 80
Slide 29: Several production starts of own developed projects in the second quarter
BUSINESS AREA PROJECT DEVELOPMENT Several production starts of own developed projects in the second quarter Capital employed and return on capital employed* 16,000 16% 13,898 13,521 14,000 13,174 13,258 14% 12,853 12,189 12,000 12% Return on capital employed 10,000 10% 8,000 6,000 8% 6% 14.6% (5.7)
Slide 30: The Peab Group
The Peab Group 30
Slide 31: Segment reporting
THE GROUP Segment reporting Apr-Jun Apr-Jun Jul 2020- Jan-Dec MSEK 2021 2020 Jun 2021 2020 Net sales 15,169 15,518 56,646 57,417 Operating profit 824 661 3,420 3,541 Operating margin, % 5.4 4.3 6.0 6.2 31
Slide 32: The acquisition of paving and mineral aggregate business increases seasonal variations
THE GROUP The acquisition of paving and mineral aggregate business increases seasonal variations 0 Accumulatedröresleresultat Ackumulerat operating profit before före acquisition förvärv Accumulatedrörelseresultat Ackumulerat operating profit after efter acquisition förvärv 32
Slide 33: Expanding presence in the Nordic region
THE GROUP Expanding presence in the Nordic region Net sales, rolling 12 months 70% 17% (12) 12% (76) (12) 1% (0) 33
Slide 34: Increased share of public customers
THE GROUP Increased share of public customers Net sales, rolling 12 months 43% Public customers 57% (36) Private customers (64) THE CITY HALL Uppsala CITY HALL Uppsala 34
Slide 35: 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 13.1 46.7 88% BSEK (13.2) BSEK (46.1) (81) EIKELI HIGH SCHOOL Bærum 35
Slide 36: Good level of order backlog
THE GROUP Good level of order backlog Order backlog allocated over time, MSEK 25,000 21,452 20,101 20,000 18,992 18,195 15,000 54%after current 10,000 588 977 financial year (56) 5,000 0,000 Current financial year Next financial year Thereafter Jun 30, 2020 Jun 30, 2021 36
Slide 37: Cash flow affected by seasonal variations and start-ups of own developed projects
THE GROUP Cash flow affected by seasonal variations and start-ups of own developed projects Cash flow before financing, MSEK 2,000 1,763 1,597 1,683 1,500 1,095 1,000 0,500 0,000 -179 -108 -97 -0,500 -1,000 -1,059 -1,500 -2,000 -2,500 -2,264 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 37
Slide 38: Strong financial position
THE GROUP Strong financial position Net debt and net debt/equity ratio 7,000 0,6 6,000 0,5 1,702 5,000 1,404 968 0,4 Net debt 4,000 5.4 968 1,055 0,3 3,000 2,383 4,912 0,2 4,376 4,456 BSEK (6.6) 2,000 2,818 3,077 1,000 0,1 1,803 0,000 0 Q120 Q220 Q320 Q420 Q121 Q221 Other debts, MSEK Unsold part of
Slide 39: New targets as of 2021
New targets as of 2021 Most satisfied Best workplace eNPS customers SCI always over benchmark always over 75 Zero vision Serious accidents Through a contracting trend Most profitable Operating margin Leader in social Carbon dioxide intensity Carbon dioxide intensity Input goods & company >6 % respon
Slide 40: Operating margin over six percent
MOST PROFITABLE COMPANY Operating margin over six percent Operating margin, Group 7 6.2 6 4.8 4.9 4.7 Target: 6 % 5 4.4 4.5 4.4 4 3 2.3 2 1 0 2015 2016 2017 2018 2019 2020* 2021** *Operating margin exclusive effect of the distribution of Annehem Fastigheter of MSEK 952. **Calculated on rolling 12 mo
Slide 41: 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 0,6 Target: 0.3-0.7 0,4 0,2 0,0 2015 2016 2017 2018 2019 2020 2021 Q2 Years 2015-2018 are not translated according to the changed accounting principles for our own housing development projects
Slide 42: Zero vision accidents
BEST WORKPLACE Zero vision accidents Serious accidents – rolling 12 months, category 4 45 39 39 Target: 40 37 37 36 36 35 35 34 32 32 31 Contracting trend 30 30 25 19 18 18 18 19 19 18 19 20 16 16 16 16 19 20 20 19 15 18 18 18 18 14 15 14 10 13 5 0 2020 2021 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr M
Slide 43: First choice for jobseekers
BEST WORKPLACE First choice for jobseekers eNPS, Group 20 19 18 18 18 16 14 13 Target: 12 Over benchmark 10 8 6 4 2 0 2015 2016 2017 2018 2019 2020 2021 H1 43
Slide 44: Improved operating margin and good order situation
JAN-JUN 2021 Improved operating margin and good order situation • Stable market outlook • Good level of orders received and order backlog • Improved margins in construction contract operations and housing development • Continued investments in business areas Industry and Project Development • Strong
Slide 45: Next quarterly report: October 27, 2021
Q3 Next quarterly report: October 27, 2021 45
Slide 46: Thank you!
Thank you! =PEAB=