Slide 1: Q2 January - June 2022
Q2 January - June 2022 July 15, 2022 HIGHWAY 23 Växjö 1
Slide 2: Housing investments – some decline ahead
MARKET OUTLOOK Housing investments – some decline ahead Started-up housing investments, new and renovations 2022 2023 2024 Sweden ↘(→) ↘(↗) ↗(→) 2022 2023 2024 Norway → ↘(→) →(↗) 2022 2023 2024 Finland ↘ ↘(→) ↗ Source: Navet 2
Slide 3: Stable level of other building construction
MARKET OUTLOOK Stable level of other building construction Started-up other building construction investments, new and renovations 2022 2023 2024 Sweden → ↘(→) ↗ 2022 2023 2024 Norway ↑(→) ↗(→) → 2022 2023 2024 Finland ↘ → ↗(→) Source: Navet 3
Slide 4: Civil engineering investments on a continued high level
MARKET OUTLOOK Civil engineering investments on a continued high level Civil engineering investments 2022 2023 2024 Sweden ↗(↘) ↘(→) → 2022 2023 2024 Norway ↑ → → 2022 2023 2024 Finland → → → Source: Navet 4
Slide 5: Stable market prospects but with continued uncertainty
MARKET OUTLOOK Stable market prospects but with continued uncertainty Total construction and civil engineering investments, new and renovations 2022 2023 2024 Sweden → ↘(→) ↗(→) 2022 2023 2024 Norway ↗ →(↘) →(↗) 2022 2023 2024 Finland ↘ → ↗(→) Source: Navet 5
Slide 6: Price increases and delivery disturbances
Price increases and delivery disturbances • Higher prices for energy and input goods, as well as disruptions in the supply chain, have been handled well • Our local business model reduces our vulnerability • Price increases contribute to higher net sales • Costs covered in general • Operating margin
Slide 7: Business area Construction
Business area Construction RØDTINDHALLEN Tromsø 7
Slide 8: Business area Construction
Business area Construction Apr-Jun Apr-Jun Jul 2021- Jan-Dec MSEK 2022 2021 Jun 2022 2021 Net sales 7,628 6,648 28,499 26,980 Operating profit 177 187 710 711 Operating margin, % 2.3 2.8 2.5 2.6 8
Slide 9: Stable level of orders received and high order backlog
BUSINESS AREA CONSTRUCTION Stable level of orders received and high order backlog Orders received, MSEK 12,000 Order backlog 10,000 9,561 8,926 8,000 6,269 6,259 6,620 7,029 6,088 8,225 5,995 28.8 BSEK (26.4) 6,000 4,000 2,000 0,000 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 CENTRUMHUSET Norrahamm
Slide 10: Good variation in type of product and geography
BUSINESS AREA CONSTRUCTION Good variation in type of product and geography Extension of Renovation of Renovation of Extension of prison hospital stadium hospital (364 MSEK) (695 MSEK) (211 MSEK) (30 MEUR) Hudiksvall Sörbyn Uddevalla Helsinki 10
Slide 11: Allocation per product area
BUSINESS AREA CONSTRUCTION Allocation per product area Net sales, rolling 12 months Order backlog, June 30, 2022 9% 7% Housing 7% Housing 7% Construction maintenance Construction maintenance Sports facilities Sports facilities 41% Industrial 12% Industrial 11% Offices Offices Logistics Logistics 2%
Slide 12: Business area Civil Engineering
Business area Civil Engineering RAILROAD Högdalen 12
Slide 13: Business area Civil Engineering
Business area Civil Engineering Apr-Jun Apr-Jun Jul 2021- Jan-Dec MSEK 2022 2021 Jun 2022 2021 Net sales 3,893 3,743 14,323 14,180 Operating profit 148 146 474 471 Operating margin, % 3.8 3.9 3.3 3.3 13
Slide 14: High level of orders received and order backlog
BUSINESS AREA CIVIL ENGINEERING High level of orders received and order backlog Orders received, MSEK 6,000 4,980 Order backlog 5,000 4,608 4,375 4,000 3,493 3,100 3,612 3,583 3,016 16.4 BSEK (14.7) 3,000 2,724 2,000 1,000 0,000 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 THE STRIDSBERG BRIDGE Trol
Slide 15: New projects in the second quarter
BUSINESS AREA CIVIL ENGINEERING New projects in the second quarter Extension of Reconstruction of Bridge to new waste water New lock canal E45/Highway 70 neighborhood treatment plant (1,500 MSEK) (143 MSEK) (206 MSEK) (125 MSEK) Södertälje Mora Malmö Trollhättan 15
Slide 16: Allocation per product area
BUSINESS AREA CIVIL ENGINEERING Allocation per product area Net sales, rolling 12 months Order backlog, June 30, 2022 17% Operations and 22% Operations and 27% maintenance maintenance Energy Energy 8% Streets and groundwork 42% Streets and groundwork Ports and sea 8% Ports and sea 7% Industrial Indu
Slide 17: Business area Industry
Business area Industry SWEROCK’S ELECTRIC CONCRETE TRUCK Stockholm 17
Slide 18: Business area Industry
Business area Industry Apr-Jun Apr-Jun Jul 2021- Jan-Dec MSEK 2022 2021 Jun 2022 2021 Net sales 6,108 5,247 20,015 18,787 Operating profit 341 339 941 938 Operating margin, % 5.6 6.5 4.7 5.0 18
Slide 19: Allocation per product area
BUSINESS AREA INDUSTRY Allocation per product area Net sales, rolling 12 months 7%(5) 9%(11) Paving 9%(10) Concrete 48%(48) Mineral Aggregates 13%(14) Transportation and Machines 14% (12) PEAB ASFALT Helsinki 19
Slide 20: High level of orders received and order backlog
BUSINESS AREA INDUSTRY High level of orders received and order backlog Orders received, MSEK 4,500 4,000 3,835 Order backlog 3,503 3,614 3,302 7.0 3,500 2,999 3,000 2,816 2,500 2,175 2,255 BSEK (6.5) 2,012 2,000 1,500 1,000 0,500 0,000 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 ASPHALT PLANT Lahti
Slide 21: Higher return on capital employed
BUSINESS AREA INDUSTRY Higher return on capital employed Capital employed and return on capital employed* 12,000 14% 10,807 9,780 9,529 9,764 12% 10,000 9,388 9,266 9,376 8,822 8,871 10% Return on capital 8,000 employed 8% 6,000 6% 9.6 % (8.9) 4,000 4% 2,000 2% 0,000 0% Q220 Q320 Q420 Q121 Q221 Q321
Slide 22: Business area Project Development
Business area Project Development LOGISTICS TERMINAL Södertälje 22
Slide 23: Business area Project Development
Business area Project Development Apr-Jun Apr-Jun Jul 2021- Jan-Dec MSEK 2022 2021 Jun 2022 2021 Net sales 1,977 1,929 10,299 9,497 Operating profit 264 252 1,325 1,237 Operating margin, % 13.4 13.1 12.9 13.0 of which Housing Development 11.9 11.8 10.9 11.2 23
Slide 24: Fewer housing start-ups and sales
BUSINESS AREA PROJECT DEVELOPMENT Fewer housing start-ups and sales Apr-Jun Apr-Jun Jul 2021- Jan-Dec Number 2022 2021 Jun 2022 2021 Housing start-ups 528 785¹ 2,825 3,020 Sold homes 445 797 2,838 3,047 Repurchased homes on the balance sheet 126 200 126 144 at the end of the period ¹Includes 56 home
Slide 25: Examples of production-started homes
BUSINESS AREA PROJECT DEVELOPMENT Examples of production-started homes 70 apartments in 64 apartments in 87 apartments 58 apartments Vaasa Karlstad in Skellefteå in Turku Brf Brf Framtiden Vaasan Kajpromenaden Kakolan Torni Laivuri 25
Slide 26: 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 4,835 75% (4,132) (76) SCHEELEVÄGEN Malmö 26
Slide 27: Rentals on our own balance sheet
BUSINESS AREA PROJECT DEVELOPMENT Rentals on our own balance sheet Apr-Jun Apr-Jun Jul 2021- Jan-Dec Number of rentals 2022 2021 Jun 2022 2021 Production-started homes 300 135 588 676 Sold homes - - - 91 Converted to tenant-owner - 56 311 426 associations Totalt number of homes in production, at the
Slide 28: Total number of homes in production
BUSINESS AREA PROJECT DEVELOPMENT Total number of homes in production Number per of which sold June 30, 2022 Tenant-owner associations, ownership and 4,835 (4,132) 75 % residential limited companies Rentals 1,075 (798) 87 % Total number in 5,910 (4,930) 77 % production 28
Slide 29: Ongoing property projects in Property Development
BUSINESS AREA PROJECT DEVELOPMENT Ongoing property projects in Property Development Total Recognized investment Rentable Degree Timepoint of Level of Type of project Location value, at area, m2 rented, % completion completion, % MSEK completion, MSEK Sports hall Sundsvall 14,700 100 220 225 Q3-2022
Slide 30: Stable level of capital employed and returns
BUSINESS AREA PROJECT DEVELOPMENT Stable level of capital employed and returns Capital employed and return on capital employed* 16,000 18% 13,521 13,174 13,685 13,523 13,624 13,911 16% 14,000 12,853 13,258 12,189 14% 12,000 Return on capital 12% employed 10,000 10% 8,000 6,000 8% 6% 10.2% (14.6) 4,0
Slide 31: The Peab Group
The Peab Group 31
Slide 32: Segment reporting
THE GROUP Segment reporting Apr-Jun Apr-Jun Jul 2021- Jan-Dec MSEK 2022 2021 Jun 2022 2021 Net sales 16,858 15,169 63,043 60,026 Operating profit 885 824 3,242 3,098 Operating margin, % 5.2 5.4 5.1 5.2 32
Slide 33: Large presence in the Nordic region
THE GROUP Large presence in the Nordic region Net sales, rolling 12 months 72% 14% (17) 13% (70) (12) 1% (1) 33
Slide 34: Large portion of public customers
THE GROUP Large portion of public customers Net sales, rolling 12 months 41% Public customers 59% (43) Private customers (57) LINNANMAA FIRE STATION 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 14.3 49.9 86% BSEK (13.1) BSEK (46.7) (88) VILUNDAHALLEN Upplands Väsby 35
Slide 36: High level of order backlog
THE GROUP High level of order backlog Order backlog allocated over time, MSEK 25,000 21,452 21,435 20,000 19,277 18,195 15,000 9,187 57%after current 10,000 7,037 financial year (54) 5,000 0,000 Current financial year Coming financial year Thereafter Jun 30, 2021 Jun 30, 2022 36
Slide 37: Cash flow affected by seasonal patterns
THE GROUP Cash flow affected by seasonal patterns Cash flow before financing, MSEK 3,000 2,465 2,000 1,683 1,763 1,000 0,781 0,000 -0,108 -0,097 -0,323 -1,000 -1,540 -2,000 -2,264 -3,000 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 37
Slide 38: Net debt affected by dividend and accumulated working capital
THE GROUP Net debt affected by dividend and accumulated working capital Net debt and net debt/equity ratio 7,000 0,6 6,000 0,5 1,702 1,705 5,000 1,404 968 0,4 Net debt 4,000 947 968 3,000 4,912 4,376 1,055 4,456 1,573 4,628 0,3 0,2 6.3 BSEK (5.4) 2,000 958 3,514 2,818 3,077 1,000 0,1 1,466 1,418 0,0
Slide 39: Target checkpoint
Target checkpoint 39
Slide 40: 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 Most profitable Operating margin Leader in social Carbon dioxide intensity Carbon dioxide intensity Input goods & c
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 5.1 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 2022 Q2** *Operating margin exclusive effect of the distribution of Annehem Fastigheter of MSEK 952. ** Based on rollin
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 2022 Q2 Years 2015-2018 are not translated according to the changed accounting principles for our own housing development pro
Slide 43: Zero vision for workplace accidents
BEST WORKPLACE Zero vision for workplace accidents Serious accidents, rolling 12 months, category 4 60 50 48 Target: Contracting trend 39 40 36 34 Target 2022: <28 32 32 30 30 30 30 28 25 20 19 20 20 18 16 18 18 18 16 23 18 19 10 10 14 14 14 14 14 11 0 2020 2021 2022 Jan Mar Jun Sep Dec Mar Jun Sep
Slide 44: First choice for job seekers
BEST WORKPLACE First choice for job seekers eNPS, Group, recommend Peab 30 28 24 25 19 19 20 20 18 18 Target: 15 Over 15 13 eNPS 10 10 industry 10 8 8 8 Benchmark benchmark 5 0 2018 2019 2019 2020 2021 2021 2022 Q4 Q2 Q4 Q4 Q2 Q4 Q2 44
Slide 45: Stable first half-year
JAN-JUN 2022 Stable first half-year • Increased net sales and improved result • Continued good handling of price increases, but operating margin slightly diluted • High level of orders received and order backlog • Somewhat lower level of start-ups and sales of own housing developments • Uncertainty
Slide 46: Next quarterly report: October 28, 2022
Q3 Next quarterly report: October 28, 2022 46
Slide 47: Thank you!
Thank you! =PEAB=