Peab Ab Class B · OMXSTO:PEAB_B
Peab Ab Class B — Q4 2021 Earnings Presentation
53 slides from Peab Ab Class B's earnings presentation, Feb 4, 2022
Slide 1: Q4 January - December 2021
Q4 January - December 2021 February 4, 2022 Arena Billingen Skövde 1
Slide 2: Housing investment – leveling out ahead
MARKET OUTLOOK Housing investment – leveling out ahead Started-up housing investments, new and renovations 2021 2022 2023 Sweden ↗ → (↗) ↗ 2021 2022 2023 Norway ↘ (→) ↗ ↘ (↗) 2021 2022 2023 Finland ↑ (↗) ↘ (→) → (↗) Source: Navet Analytics AB 2
Slide 3: Slight downturn in other building construction
MARKET OUTLOOK Slight downturn in 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 3
Slide 4: 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 4
Slide 5: 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 5
Slide 6: Business area Construction
Business area Construction HUNDFJÄLLET Sälen 6
Slide 7: Business area Construction
Business area Construction Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2021 2020 2021 2020 Net sales 8,147 7,448 26,980 26,989 Operating profit 209 197 711 663 Operating margin, % 2.6 2.6 2.6 2.5 7
Slide 8: High level of orders received in the fourth quarter
BUSINESS AREA CONSTRUCTION High level of orders received in the fourth quarter Orders received, MSEK 12,000 Order backlog 10,000 9,561 8,000 7,789 7,449 6,269 6,259 6,620 7,029 6,088 8,225 30.1 BSEK (26.6) 6,000 4,000 2,000 0,000 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 TELETERRASSEN Farsta 8
Slide 9: Good variation in type of product and geography
BUSINESS AREA CONSTRUCTION Good variation in type of product and geography New swimming New rental New apartment New school apartments (11 MEUR) (418 MNOK) facility (155 MSEK) (306 MSEK) Turku Tromsø Årjäng Umeå 9
Slide 10: Alloction per product area
BUSINESS AREA CONSTRUCTION Alloction per product area Net sales, rolling 12 months Order backlog, December 31, 2021 6% 5% 6% 9% Housing Housing Construction maintenance Construction maintenance Sports facilities Sports facilities 10% 39% 15% Industrial Industrial Offices Offices Logistics 51% Logist
Slide 11: Business area Civil Engineering
Business area Civil Engineering E45 Gothenburg 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2021 2020 2021 2020 Net sales 4,062 3,600 14,180 12,843 Operating profit 164 131 471 391 Operating margin, % 4.0 3.6 3.3 3.0 12
Slide 13: Stable level of orders received
BUSINESS AREA CIVIL ENGINEERING Stable level of orders received Orders received, MSEK 5,000 4,608 4,500 Order backlog 4,000 3,679 14.0 3,612 3,583 3,435 3,493 3,500 3,100 3,016 3,000 2,724 2,500 BSEK (13.1) 2,000 1,500 1,000 0,500 0,000 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 E45 Gothenburg 13
Slide 14: New projects in the fourth quarter
BUSINESS AREA CIVIL ENGINEERING New projects in the fourth quarter Expansion of Renovation of the drinking water New bridge Tingstad Tunnel pipeline system (157 MSEK) (365 MSEK) (190 MSEK) Gothenburg Lund Uppsala 14
Slide 15: Allocation per product area
BUSINESS AREA CIVIL ENGINEERING Allocation per product area Net sales, rolling 12 months Order backlog, December 31, 2021 17% Operations and 22% Operations and 28% maintenance maintenance Energy Energy 36% 9% Streets and groundwork Streets and groundwork Ports and sea 9% Ports and sea Industrial Ind
Slide 16: Business area Industry
Business area Industry SWECEM’S SLAG TERMINAL Oxelösund 16
Slide 17: Business area Industry
Business area Industry Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2021 2020 2021 2020 Net sales 5,138 4,929 18,787 18,720 Operating profit 420 397 938 1,105 Operating margin, % 8.2 8.1 5.0 5.9 17
Slide 18: Allocation per product area
BUSINESS AREA INDUSTRY Allocation per product area Net sales, rolling 12 months 6% 10% Paving 9% Concrete 48% Mineral Aggregates 14% Transportation and Machines 13% Rentals Construction System TINGSTAD TUNNEL Gothenburg 18
Slide 19: Stable level of orders received
BUSINESS AREA INDUSTRY Stable level of orders received Orders received, MSEK 4,000 3,503 3,500 3,302 Order backlog 2,999 3,000 2,500 2,175 2,816 2,012 2,255 3.9 BSEK (3.9) 2,000 1,803 1,500 1,399 1,000 0,500 0,000 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 ASPHALT PLANT Lahti 19
Slide 20: Continued investments in the fourth quarter
BUSINESS AREA INDUSTRY Continued investments in the fourth quarter Capital employed and return on capital employed* 12,000 16% 9,780 9,764 14% 10,000 9,529 9,388 9,266 8,822 8,871 12% Return on capital 8,000 employed 10% 6,399 6,000 8% 6% 10.1% (12.8) 4,000 4% 2,000 2% 0,000 0% Q120 Q220 Q320 Q420 Q
Slide 21: Business area Project Development
Business area Project Development STOCKHOLM LIGHTHOUSE Nacka 21
Slide 22: Business area Project Development
Business area Project Development Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2021 2020 2021 2020 Net sales 3,117 1,804 9,497 7,500 Operating profit 446 1,195 1,237 1,669 Operating margin, % 14.3 66.2 13.0 22.3 of which Housing Development 12.0 13.5 11.2 9.6 22
Slide 23: High level of housing start-ups and continued good sales
BUSINESS AREA PROJECT DEVELOPMENT High level of housing start-ups and continued good sales Oct-Dec Oct-Dec Jan-Dec Jan-Dec Number 2021 2020 2021 2020 Housing start-ups 895¹ 679¹ 3,020 2,291 Sold homes 846 664 3,047 2,682 Repurchased homes on the balance sheet at 144 222 144 222 the end of the period
Slide 24: Selection of production-started homes
BUSINESS AREA PROJECT DEVELOPMENT Selection of production-started homes 113 apartments in 91 apartments in 55 apartments in 51 apartments in Lund Gothenburg Turku Espoo Kirstipuiston Edith Brf Cubo Brf Celsius tammi 24
Slide 25: 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 4,702 76% (4,014) (73) MIDTVEIEN Moss 25
Slide 26: Rentals on our own balance sheet
BUSINESS AREA PROJECT DEVELOPMENT Rentals on our own balance sheet Oct-Dec Oct-Dec Jan-Dec Jan-Dec Number of rentals 2021 2020 2021 2020 Production-started homes 288 303 676 502 Sold homes - 4 91 4 Converted to tenant-owner 89 41 426 228 associations Totalt number of homes in 922¹ 763 922 763 produc
Slide 27: Total number of homes in production
BUSINESS AREA PROJECT DEVELOPMENT Total number of homes in production Number per of which December 31, 2021 sold (2020) Tenant-owner associations, ownership and residential 4,702 (4,014) 76 % limited companies Rentals 922 (763) 69 % Total number in production 5,624 (4,777) 75 % 27
Slide 28: Larger ongoing property projects in Property Development
BUSINESS AREA PROJECT DEVELOPMENT Larger ongoing property projects in Property Development Total investment Rentable Degree Recognized Timepoint of Level of Type of project Location at completion, area, m2 rented, % value, MSEK completion completion, % MSEK Sports hall Sundsvall 14,700 100 195 223 Q
Slide 29: Continued strategic investments
BUSINESS AREA PROJECT DEVELOPMENT Continued strategic investments Capital employed and return on capital employed* 16,000 18% 13,898 13,521 13,685 13,523 14,000 13,174 13,258 16% 12,853 12,189 14% 12,000 Return on capital 12% employed 10,000 9.8 10% 8,000 8% 6,000 6% % (13.1) 4,000 4% 2,000 2% 0,000
Slide 30: The Peab Group
The Peab Group 30
Slide 31: Segment reporting
THE GROUP Segment reporting Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2021 2020 2021 2020 Net sales 17,520 15,424 60,026 57,417 Operating profit 1,246 1,825 3,098 3,541 Operating margin, % 7.1 11.8 5.2 6.2 The effect of the distribution of Annehem Fastigheter of MSEK 952 is included in the fourth quarter
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 71% 15% (16) 13% (71) (12) 1% (1) 33
Slide 34: Large share of public customers
THE GROUP Large share of public customers Net sales, rolling 12 months 42% Public customers 58% (43) Private customers (57) OULUHALLI Oulu 34
Slide 35: High level of orders received and good risk diversification
THE GROUP High level of orders received and good risk diversification Orders received Order backlog Share of projects under MSEK 500 14.4 45.3 89% BSEK (12.1) BSEK (42.7) (85) TOWN HALL Uppsala 35
Slide 36: High level of order backlog
THE GROUP High level of order backlog Order backlog allocated over time, MSEK 35,000 30,000 28,99 29,883 25,000 20,000 15,000 34%after coming 11,004 11,618 10,000 financial year (32) 5,000 2,715 3,817 0,000 Coming financial year Next financial year Thereafter Dec 31, 2020 Dec 31, 2021 36
Slide 37: Positive cash flow despite continued strategic investments
THE GROUP Positive cash flow despite continued strategic investments Cash flow before financing, MSEK 3000 2,465 2000 -1,683 1,763 1,597 1,095 1000 781 0 -108 -97 -1000 -2000 -2,264 -3000 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 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 4,000 947 2.4 968 1,055 0,3 3,000 2,383 4,912 0,2 4,376 4,456 BSEK (3.9) 2,000 958 3,514 2,818 3,077 1,000 0,1 1,803 1,466 0,000 0 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Oth
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: Financial targets
Financial targets 40
Slide 41: Operating margin over six percent
MOST PROFITABLE COMPANY Operating margin over six percent Operating margin, Group 7 6.2 Target: 6 % 6 5.2 4.8 4.9 5 4.7 4.4 4.5 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. Years 2015-2018 are not transl
Slide 42: 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 Years 2015-2018 are not translated according to the changed accounting principles for our own housing development projects 42
Slide 43: Dividend more than 50 percent of profit for the year
STRATEGIC TARGET Dividend more than 50 percent of profit for the year Dividend, % of profit for the year Dividend, SEK 200 178 180 160 8,00 140 7.00 7,00 120 96 97 6,00 100 5.00 5,00 4.50 80 66 65 65 61 67 4.00 4.20 58 59 59 3.60 4,00 60 Target: >50% 2.60 40 3,00 20 2,00 0 1,00 0,00 2015 2016 2017 2
Slide 44: Non-financial targets
Non-financial targets 44
Slide 45: Focus on quality in our delivery
MOST SATISFIED CUSTOMERS Focus on quality in our delivery Satisfied customer index (SCI) 82 81 80 80 78 78 76 75 75 Target: >75 74 73 73 72 70 68 2015 2016 2017 2018 2019 2020 2021 45
Slide 46: First choice for jobseekers
BEST WORKPLACE First choice for jobseekers eNPS, recommend Peab 30 25 24 20 19 19 Target: 18 18 15 Over 15 eNPS 13 industry Benchmark 10 10 10 8 8 8 benchmark 5 0 2018 Q4 2019 Q2 2019 Q4 2020 Q4 2021 Q2 2021 Q4 46
Slide 47: Zero vision for workplace accidents
BEST WORKPLACE Zero vision for workplace accidents Serious accidents, rolling 12 months, category 4 45 39 40 Target: Contracting trend 36 35 32 32 30 30 30 Target 2021: <39 30 28 Actual 2021: 28 25 20 18 16 18 20 18 19 18 Target 2022: <28 16 15 18 19 10 10 14 14 14 14 11 5 0 2020 2021 Jan Mar Jun Se
Slide 48: Climate targets for our own production
LEADER IN SOCIAL RESPONSIBILITY Climate targets for our own production Carbon dioxide intensity, own production (Scope 1 + 2) 120 100 80 60 Actual 2021: -40 % Target 2030: -60% 40 20 0 * Direct and indirect emissions as a result of using fuel and energy in our own production 48
Slide 49: Climate targets for input goods and purchased services
LEADER IN SOCIAL RESPONSIBILITY Climate targets for input goods and purchased services Carbon dioxide intensity, input goods and purchased services (Scope 3) 120 100 Actual 2021: - 3% 80 60 Target 2030: -50% 40 20 0 * Includes concrete/cement, asphalt/bitumen, transportation and machine services, st
Slide 50: Equal opportunity recruitment
LEADER IN SOCIAL RESPONSIBILITY Equal opportunity recruitment: Number of women always over education market Target 2021: >28,5% Production and processing* (SW), % 50% Actual 2021: 34,9% 40% Target 2022: >30% 30% 20% 10% 0% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 *27 years or younger
Slide 51: Strong end of the year and broadly met targets
OCT-DEC 2021 Strong end of the year and broadly met targets • Increased level of orders received and order backlog • Profitable growth with improved margins in construction contract businesses and housing development • Strong financial position • Stable market outlook • Continued uncertainty regardi
Slide 52: Next interim report: May 5, 2022
Q1 Next interim report: May 5, 2022 52
Slide 53: Thank you!
Thank you! =PEAB=