Peab Ab Class B · OMXSTO:PEAB_B
Peab Ab Class B — Q3 2021 Earnings Presentation
46 slides from Peab Ab Class B's earnings presentation, Oct 27, 2021
Slide 1: Q3 January - September 2021
Q3 January - September 2021 October 27, 2021 M house Seinäjoki 1
Slide 2: Stable market prospects
MARKET OUTLOOK Stable market prospects 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: Leveling for other building construction
MARKET OUTLOOK Leveling 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 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 outlook
MARKET OUTLOOK Stable outlook 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 THE WATER TOWER Järna 6
Slide 7: Business area Construction
Business area Construction Jul-Sep Jul-Sep Oct 2020- Jan-Dec MSEK 2021 2020 Sep 2021 2020 Net sales 5,989 5,798 26,281 26,989 Operating profit 164 137 699 663 Operating margin, % 2.7 2.4 2.7 2.5 7
Slide 8: High level of orders received
BUSINESS AREA CONSTRUCTION High level of orders received Orders received, MSEK 9 000 8 225 8 000 7 789 Order backlog 7 449 7 029 6 620 28.7 7 000 6 269 6 259 6 088 6 000 5 213 5 000 BSEK (27.5) 4 000 3 000 2 000 1 000 0 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 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 school and New retirement New production rental apartments home Extension of school facility (231 MSEK) (203 MSEK) (146 MNOK) (24 MEUR) Eskilstuna Jönköping Sørreisa Seinäjoki 9
Slide 10: Split into product area
BUSINESS AREA CONSTRUCTION Split into product area Net sales, rolling 12 months Order backlog, September 30, 2021 5% 7% 9% Housing 5% Housing Construction maintenance Construction maintenance Sports facilities Sports facilities 10% 38% Industrial 15% Industrial Offices 44% Offices 5% Logistics Logis
Slide 11: Business area Civil Engineering
Business area Civil Engineering E45 Gothenburg 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Jul-Sep Jul-Sep Oct 2020- Jan-Dec MSEK 2021 2020 Sep 2021 2020 Net sales 3,285 3,041 13,718 12,843 Operating profit 109 92 438 391 Operating margin, % 3.3 3.0 3.2 3.0 12
Slide 13: Stable level of orders received in the third quarter
BUSINESS AREA CIVIL ENGINEERING Stable level of orders received in the third quarter Orders received, MSEK 5,000 4,608 4,500 Order backlog 4,000 3,679 15.1 3,612 3,583 3,435 3,493 3,500 3,100 3,000 2,862 2,724 2,500 BSEK (14.1) 2,000 1,500 1,000 0,500 0,000 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q3
Slide 14: Great variation on contracts
BUSINESS AREA CIVIL ENGINEERING Great variation on contracts Electricity grid services – two Reconstruction of Construction of renewed Tunnel to subway ferry berths waterworks agreements (124 MSEK) (301 MNOK) (154 MSEK) (390 MSEK) Eon and Nordland Härryda Stockholm Vattenfall 14
Slide 15: Split into product area
BUSINESS AREA CIVIL ENGINEERING Split into product area Net sales, rolling 12 months Order backlog, September 30, 2021 17% Operations and 23% Operations and maintenance maintenance 30% Energy Energy 37% 8% Streets and groundwork Streets and groundwork Ports and sea Ports and sea 10% Industrial Indus
Slide 16: Business area Industry
Business area Industry SWECEM’S SLAG TERMINAL Oxelösund 16
Slide 17: Business area Industry
Business area Industry Jul-Sep Jul-Sep Oct 2020- Jan-Dec MSEK 2021 2020 Sep 2021 2020 Net sales 6,198 6,233 18,578 18,720 Operating profit 576 471 915 1,105 Operating margin, % 9.3 7.6 4.9 5.9 17
Slide 18: Split into product area
BUSINESS AREA INDUSTRY Split into product area Net sales, rolling 12 months 6% 11% Paving Concrete 9% 48% Mineral Aggregates 14% Transportation and Machines 12% Rentals Construction System TINGSTAD TUNNEL Gothenburg 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 4,000 3,503 3,500 3,302 Order backlog 2,999 3,000 2,500 2,175 2,816 2,012 4.4 BSEK (4.1) 2,000 1,803 1,500 1,399 1,096 1,000 0,500 0,000 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 ASPHALT PLANT Lahti 19
Slide 20: Third quarter affected by investments and seasonality
BUSINESS AREA INDUSTRY Third quarter affected by investments and seasonality Capital employed and return on capital employed* 12,000 16% 9,780 9,764 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% 10.0% (13.2) 4,000 4% 2,000 2% 0,000 0% Q120 Q220 Q320 Q4
Slide 21: Business area Project Development
Business area Project Development LIGHTHOUSE Nacka 21
Slide 22: Business area Project Development
Business area Project Development Jul-Sep Jul-Sep Oct 2020- Jan-Dec MSEK 2021 2020 Sep 2021 2020 Net sales 2,741 1,750 8,184 7,500 Operating profit 326 162 1,986 1,669 Operating margin, % 11.9 9.3 24.3 22.3 of which Housing Development 9.5 8.9 11.4 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 Jul-Sep Jul-Sep Oct 2020- Jan-Dec Number 2021 2020 Sep 2021 2020 Housing start-ups 678¹ 591¹ 2,804 2,291 Sold homes 747 730 2,865 2,682 Repurchased homes on the balance sheet at 170 195 170 222 the end of th
Slide 24: Selection of production-started homes
BUSINESS AREA PROJECT DEVELOPMENT Selection of production-started homes 75 homes in 111 homes in 39 homes in 63 homes in Gothenburg Tromsø Tampere Hudiksvall Brf Brf Panorama Gamlestads Inga Sparboes Hervantajärven Plaza veg Sara 24
Slide 25: Housing Development after the third quarter
BUSINESS AREA PROJECT DEVELOPMENT Housing Development after the third quarter Number of homes Homes under in production construction sold 4,487 77% (4,056) (72) KAJUTAN ÖSTER MÄLARSTRAND Västerås 25
Slide 26: Rentals on own balance sheet
BUSINESS AREA PROJECT DEVELOPMENT Rentals on own balance sheet Jul-Sep Jul-Sep Oct 2020- Jan-Dec Number of rentals 2021 2020 Sep 2021 2020 Production-started - 60 691 502 homes Sold homes - - 95 4 Converted to tenant- 75 - 378 228 owner associations Totalt number of homes in production, at 723¹ 505
Slide 27: Total number of homes in production
BUSINESS AREA PROJECT DEVELOPMENT Total number of homes in production Number per September 30, 2021 of which (2020) sold Tenant-owner associations, ownership and 4 487 (4 056) 77 % residential limited companies Rentals 723 (505) 73 % Total number 5 210 (4 561) 77 % 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 4,300 100 170 194 Q4-2021 88
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 14,000 13,174 13,258 16% 12,853 12,189 14% 12,000 Return on capital 12% employed 10,000 15.8 10% 8,000 8% 6,000 6% % (5.6) 4,000 4% 2,000 2% 0,000 0% Q12
Slide 30: The Peab Group
The Peab Group 30
Slide 31: Segment reporting
THE GROUP Segment reporting Jul-Sep Jul-Sep Oct 2020- Jan-Dec MSEK 2021 2020 Sep 2021 2020 Net sales 16,121 14,837 57,930 57,417 Operating profit 1,101 844 3,677 3,541 Operating margin, % 6.8 5.7 6.3 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% (14) 12% (73) (12) 1% (1) 33
Slide 34: Increased share of public customers
THE GROUP Increased share of public customers Net sales, rolling 12 months 46% Public customers 54% (36) Private customers (64) VERNEBYGGET Stokmarknes 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 13.9 46.3 86% MSEK (11.7) Mdkr (44.7) (82) HELSINGIN SEUDUN YLIOPSTOLLINEN KESKUSSAIRAALA Helsinki 35
Slide 36: Good level of order backlog
THE GROUP Good level of order backlog Order backlog allocated over time, MSEK 30,000 24,257 23,883 25,000 20,000 15,000 10,776 11,860 74% 9,689 10,537 after current 10,000 financial year (76) 5,000 0,000 Current financial year Next financial year Thereafter Sep 30, 2020 Sep 30, 2021 36
Slide 37: Positive cash flow in spite of strategic investments
THE GROUP Positive cash flow in spite of strategic investments Cash flow before financing, MSEK 2 000 1,763 1,597 1,683 1 500 1,095 1 000 781 500 0 -179 -108 -97 -500 -1 000 -1 500 -2 000 -2 500 -2,264 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 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 0,947 4.5 968 1,055 0,3 3,000 2,383 4,912 0,2 4,376 4,456 BSEK (5.8) 2,000 3,514 2,818 3,077 1,000 0,1 1,803 0,000 0 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Other debts, MSE
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 4.7 Target: 6 % 5 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. **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 40 39 Target: 36 35 32 32 Contracting trend 30 30 30 30 25 20 18 20 18 16 18 18 16 15 18 19 10 14 14 14 14 12 5 2020 2021 0 Jan Mar Jun Sep Dec Mar Jun Sep Own personnel Subcontractors Total 42
Slide 43: Nollvision arbetsplatsolyckor
BÄSTA ARBETSPLATSEN Nollvision arbetsplatsolyckor Allvarliga olyckor - rullande 12 mån, kategori 4 Mål: Minskande trend 2020 2021 43
Slide 44: Profitable growth and high level of orders received
JUL-SEP 2021 Profitable growth and high level of orders received • High 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 financial position • S
Slide 45: Q4 Year-end report
Q4 Year-end report 4 februari 2022 45
Slide 46: Thank you!
Thank you! =PEAB=