Slide 1: Q1 January - March 2021
Q1 January - March 2021 May 6, 2021 STUDENT HALL Linköping 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 outlook ahead
MARKET OUTLOOK Housing investments – strong outlook ahead 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 started-up other building construction
MARKET OUTLOOK Stable outlook for started-up 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: Public investments positive for civil engineering
MARKET OUTLOOK Public investments positive for civil engineering 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 Jan-Mar Jan-Mar Apr 2020- Jan-Dec MSEK 2021 2020 Mar 2021 2020 Net sales 6,196 6,620 26,565 26,989 Operating profit 151 146 668 663 Operating margin, % 2.4 2.2 2.5 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 27.4 7,000 6,368 6,269 6,259 6,000 5,213 5,000 BSEK (27.8) 4,000 3,000 2,000 1,000 0,000 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 MÄSSINGSRÖRET Upplands Väsby
Slide 9: Good variation in type of product and geography
BUSINESS AREA CONSTRUCTION Good variation in type of product and geography New high school New office building New student New car dealership (405 MSEK) (20 MEUR) housing (113 MNOK) (225 MSEK) Student Car dealership High school Offices in housing in in Enköping Espoo in Ålesund Stockholm 9
Slide 10: Split by product area
BUSINESS AREA CONSTRUCTION Split by product area Net sales, rolling 12 months Order backlog, March 31, 2021 4% 6% 9% 8% Housing Housing Construction maintenance Construction maintenance 9% 37% Sports facilities Sports facilities Industrial 12% Industrial Offices 47% Offices 7% Logistics Logistics 2%
Slide 11: Business area Civil Engineering
Business area Civil Engineering ROAD E20 Vårgårda-Alingsås 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Jan-Mar Jan-Mar Apr 2020- Jan-Dec MSEK 2021 2020 Mar 2021 2020 Net sales 3,090 2,770 13,163 12,843 Operating profit 52 41 402 391 Operating margin, % 1.7 1.5 3.1 3.0 12
Slide 13: High level of orders received in the first quarter
BUSINESS AREA CIVIL ENGINEERING High level of orders received in the first quarter Orders received, MSEK 5,000 4,608 4,500 Order backlog 4,000 3,679 3,500 3,000 3,069 3,498 2,862 3,435 3,493 3,100 2,724 14.8 BSEK (14.1) 2,500 2,000 1,500 1,000 0,500 0,000 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Slide 14: Great variation on contracts
BUSINESS AREA CIVIL ENGINEERING Great variation on contracts Reconstruction of Reconstruction of Electric grid New horse racing wastewater highway 35 services track facility treatment plant (122 MSEK) (400 MSEK) (100 MNOK) (254 MSEK) Wastewater treatment plant in Race track Highway facility in south
Slide 15: Split by product area
BUSINESS AREA CIVIL ENGINEERING Split by product area Net sales, rolling 12 months Order backlog, March 31, 2021 21% Operations and 19% Operations and maintenance maintenance Energy Energy 35% 41% Streets and groundwork Streets and groundwork 9% 9% Ports and sea Ports and sea Industrial Industrial 7
Slide 16: Business area Industry
Business area Industry C&D RECYCLING WASH PLANT Malmö 16
Slide 17: Business area Industry
Business area Industry Jan-Mar Jan-Mar Apr 2020- Jan-Dec MSEK 2021 2020 Mar 2021 2020 Net sales 2,204 2,215 18,709 18,720 Operating profit -397 -66 774 1 105 Operating margin, % -18.0 -3.0 4.1 5.9 17
Slide 18: Growth in Paving and Mineral Aggregates
BUSINESS AREA INDUSTRY Growth in Paving and Mineral Aggregates Net sales, rolling 12 months 5% 12% Paving Concrete 10% 48% Mineral Aggregates 13% Transportation and Machines 12% Rentals Construction System TINGSTAD TUNNEL Gothenburg 18
Slide 19: 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 3,302 Order backlog 3,000 2,500 2,280 2,175 2,816 6.5 BSEK (3.4) 2,000 1,803 1,500 1,399 0,995 1,096 1,000 0,500 0,000 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 19
Slide 20: 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 8,871 12% Return on capital 8,000 employed 10% 6,399 6,000 8% 6% 8.4 % (13.6) 4,000 4% 2,000 2% 0,000 0% Q120 Q220 Q320 Q420 Q121
Slide 21: Business area Project Development
Business area Project Development SCHEELEVÄGEN Lund 21
Slide 22: Business area Project development
Business area Project development Jan-Mar Jan-Mar Apr 2020- Jan-Dec MSEK 2021 2020 Mar 2021 2020 Net sales 1,710 1,969 7,241 7,500 Operating profit 213 174 1,708 1,669 Operating margin, % 12.5 8.8 23.6 22.3 of which Housing Development 12.1 8.1 10.6 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 Jan-Mar Jan-Mar Apr 2020- Jan-Dec Number 2021 2020 Mar 2021 2020 Housing start-ups 662* 503 2,450 2,291 Sold homes 657 787 2,552 2,682 Repurchased homes on the balance sheet 222 245 222 222 at the end of the
Slide 24: Selection of production-started homes
BUSINESS AREA PROJECT DEVELOPMENT Selection of production-started homes 60 homes in 116 homes in 56 homes in 69 homes in Örebro Malmö Tampere Helsinki Brf Brf Hervanta- Esplanaden Helsingin Varvsporten järven kaisla Maaherra 24
Slide 25: Housing Development after the first quarter
BUSINESS AREA PROJECT DEVELOPMENT Housing Development after the first quarter Number of homes Homes under in production construction sold 3,821 74% (4,538) (72) TAMPEREEN FÖRSTI Tampere 25
Slide 26: Rentals in own balance sheet
BUSINESS AREA PROJECT DEVELOPMENT Rentals in own balance sheet Jan-Mar Jan-Mar Apr 2020- Jan-Dec Number of rentals 2021 2020 Mar 2021 2020 Production-started 253 75 680 502 homes Sold homes 91 - 95 4 Converted to tenant- 206 - 434 228 owner associations Totalt number of homes in production, 719* 568
Slide 27: Ongoing property projects
BUSINESS AREA PROJECT DEVELOPMENT Ongoing property projects Recognized Total investment Type of Rentable Degree Timepoint of Level of Location value, at completion, project area, m2 rented, % completion completion, % MSEK MSEK Office Helsingborg 2,900 88 104 106 Q2-2021 98 building Office Solna 4,30
Slide 28: Somewhat lower capital employed
BUSINESS AREA PROJECT DEVELOPMENT Somewhat lower capital employed Capital employed and return on capital employed 16,000 16% 13,898 13,521 14,000 13,174 14% 12,853 12,189 12,000 12% Return on capital employed 10,000 10% 8,000 6,000 8% 6% 13.7% (6.6) 4,000 4% 2,000 2% 0,000 0% Q120 Q220 Q320 Q420* Q1
Slide 29: The Peab Group
The Peab Group 29
Slide 30: Segment reporting
THE GROUP Segment reporting Jan-Mar Jan-Mar Apr 2020- Jan-Dec MSEK 2021 2020 Mar 2021 2020 Net sales 11,216 11,638 56,995 57,417 Operating profit -73 211 3,257 3,541 Operating margin, % -0.7 1.8 5.7 6.2 30
Slide 31: 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 Ackumulerat Accumulatedröresleresultat före operating profit förvärv before acquisition Accumulatedrörelseresultat Ackumulerat operating profit after efter acquisition förvärv 31
Slide 32: Expanding presence in the Nordic region
THE GROUP Expanding presence in the Nordic region Net sales, rolling 12 months 70% 16% (10) 13% (79) (11) 1% (─) 32
Slide 33: Increased share of public customers
THE GROUP Increased share of public customers Net sales, rolling 12 months 43% Public customers 57% (33) Private customers (67) THE CHYDENIUS SCHOOL Kokkola 33
Slide 34: Stable orders received and order backlog
THE GROUP Stable orders received and order backlog Orders received Order backlog Share of projects below MSEK 500 14.4 47.3 87% BSEK (12.6) BSEK (44.2) (78) UNIVERSITY HOSPITAL OF UMEÅ Umeå 34
Slide 35: Good level of the order backlog
THE GROUP Good level of the order backlog Order backlog allocated over time, MSEK 35,000 29,427 30,000 25,581 25,000 20,000 15,000 13,546 13,118 40% after current 10,000 financial year (42) 588 977 5,000 0,000 Current financial year Next financial year Thereafter Mar 31, 2020 Mar 31, 2021 35
Slide 36: Cash flow affected by seasonal variations
THE GROUP Cash flow affected by seasonal variations Cash flow before financing, MSEK 2,000 1,763 1,597 1,683 1,500 1,204 1,168 1,000 0,500 0,000 -0,179 -0,108 -0,500 -1,000 -1,059 -1,500 -2,000 -2,500 -2,264 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 36
Slide 37: 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 0,4 Net debt 4,000 3,000 2,383 4,912 4,376 1,055 0,968 0,3 0,2 4.0 BSEK (4.2) 2,000 2,818 3,077 1,000 0,1 1,803 0,000 0 Q120 Q220 Q320 Q420 Q121 Other debts, MSEK Unsold part of housing proje
Slide 38: 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 Own production Input goods & comp
Slide 39: 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 4.5 4.4 4.0 4 3 2.3 2 1 0 2015 2016 2017 2018 2019 2020* 2021** *Operating margin exclusive effect of distribution of Annehem Fastigheter of MSEK 952. **Calculated on rolling 12 months
Slide 40: 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 Q1 Years 2011-2018 are not translated according to the changed accounting principles for our own housing development projects
Slide 41: Zero vision accidents
BEST WORKPLACE Zero vision accidents Serious accidents – rolling 12 months, category 4 45 39 39 40 37 37 36 36 35 34 35 Target: 31 32 31 32 30 29 30 Contracting trend 27 25 19 19 20 20 19 20 18 18 18 18 18 18 18 15 16 16 15 18 18 18 18 19 19 15 16 16 10 13 14 14 14 14 5 9 0 2020 2021 Jan Feb Mar Apr
Slide 42: Continued good level of orders received and stable market prospects
JAN-MAR 2021 Continued good level of New targets, new orders received and stable business plan market prospects • Continued stable market outlook • Good level of orders received and order backlog • Lower activity as a result of the season and weather • Improved margins in construction contract opera
Slide 43: Next quarterly report: July 16, 2021
Q2 Next quarterly report: July 16, 2021 43
Slide 44: Thank you!
Thank you! =PEAB=