Slide 1: Q4 January-December 2023
Q4 January-December 2023 February 2, 2024 DÄDESJÖ SCHOOL Växjö, Sweden 1
Slide 2: Continued weak market for housing investments
MARKET OUTLOOK Continued weak market for housing investments Started-up housing investments, new and renovations 2023 2024 2025 Sweden ↓ ↘ ↗ 2023 2024 2025 Norway ↓ ↘ ↗ 2023 2024 2025 Finland ↓ ↘ ↗ Source: Navet 2
Slide 3: Lower level of investments for other building construction
MARKNADSUTSIKTER Lower level of investments for other building construction Started-up other building construction investments, new and renovations 2023 2024 2025 Sweden ↘ ↘ ↗ 2023 2024 2025 Norway ↑ → → 2023 2024 2025 Finland ↑(↗) ↘ ↗ Source: Navet 3
Slide 4: Stable market for civil engineering investments
MARKET OUTLOOK Stable market for civil engineering investments Civil engineering investments 2023 2024 2025 Sweden ↑(↘) →(↗) ↗ 2023 2024 2025 Norway ↗ ↗ → 2023 2024 2025 Finland → ↘(↗) → Source: Navet 4
Slide 5: Lower level of investments in the Nordic market
MARKET OUTLOOK Lower level of investments in the Nordic market Total construction and civil engineering investments, new and renovations 2023 2024 2025 Sweden ↓ ↘ ↗ 2023 2024 2025 Norway → → → 2023 2024 2025 Finland ↘ ↘ ↗ Source: Navet 5
Slide 6: Business area Construction
Business area Construction SOLNA SWIMMING POOL Solna, Sweden 6
Slide 7: Business area Construction
Business area Construction Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Net sales 7,029 8,330 27,780 28,999 Operating profit excl. -358 166 41 629 Mall of Scandinavia Operating margin excl. -5.1 2.0 0.1 2.2 Mall of Scandinavia, % Operating profit -358 166 441 629 Operating margin, % -5.1
Slide 8: Weak housing market affects level of orders received and order backlog
BUSINESS AREA CONSTRUCTION Weak housing market affects level of orders received and order backlog Orders received, MSEK 12,000 Order backlog 10,000 9,561 8,000 5,995 6,926 8,490 6,321 6,563 24.5 BSEK (29.1) 6,000 5,577 5,835 4,804 4,000 2,000 0,000 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 BRF Å-
Slide 9: New contracts mainly from public customers
BUSINESS AREA CONSTRUCTION New contracts mainly from public customers Rental apartments Swimming pool School Hospital (24 MEUR) facility (390 MSEK) (214 MSEK) (262 MNOK) Lerum Värnamo Tampere Leknes 9
Slide 10: Allocation per product area
BUSINESS AREA CONSTRUCTION Allocation per product area Net sales, 2023 Order backlog, December 31, 2023 9% 10% Housing Housing 8% Construction maintenance 11% 32% Construction maintenance Sports facilities Sports facilities 7% 39% Industrial Industrial Offices Offices Logistics Logistics 12% 10% Ser
Slide 11: Business area Civil Engineering
Business area Civil Engineering SUSPENSION BRIDGE Tyresö, Sweden 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Net sales 4,454 4,405 15,164 14,965 Operating profit 180 175 501 494 Operating margin, % 4.0 4.0 3.3 3.3 12
Slide 13: Stable level of orders received, good order backlog
BUSINESS AREA CIVIL ENGINEERING Stable level of orders received, good order backlog Orders received, MSEK 6,000 4,980 Order backlog 5,000 4,375 4,442 4,000 3,016 2,904 3,891 3,483 3,274 13.9 BSEK (13.9) 3,000 2,618 2,000 1,000 0,000 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 BRIDGE CONSTRUCTION E2
Slide 14: New contracts in the fourth quarter
BUSINESS AREA CIVIL ENGINEERING New contracts in the fourth quarter Reconstruction Reconstruction Upgrade of New water line of E22 of docks train station (533 MSEK) (116 MSEK) (144 MNOK) (106 MSEK) Lund Vaxholm Svedala Lillestrøm 14
Slide 15: Allocation per product area
BUSINESS AREA CIVIL ENGINEERING Allocation per product area Net sales, 2023 Order backlog, December 31, 2023 20% 24% 27% 28% Operations and maintenance Operations and maintenance Energy Energy 6% Streets and groundwork Streets and groundwork Ports and sea Ports and sea 7% Industrial 2% Industrial 7%
Slide 16: Business area Industry
Business area Industry LJUNGBYHED AIRPORT Ljungbyhed, Sweden 16
Slide 17: Business area Industry
Business area Industry Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Net sales 5,056 5,658 19,962 21,433 Operating profit 476 283 962 747 Operating margin, % 9.4 5.0 4.8 3.5 17
Slide 18: Allocation per product area
BUSINESS AREA INDUSTRY Allocation per product area Net sales, 2023 7% Paving 10% Concrete Mineral Aggregates 9% Transportation and Machines 49% Rentals Construction System 13% 12% 18
Slide 19: Stable level of orders received in the fourth quarter
BUSINESS AREA INDUSTRY Stable level of orders received in the fourth quarter Orders received, MSEK 4,500 4,000 3,835 Order backlog 3,614 4.0 3,500 3,159 3,127 2,914 3,000 2,689 2,424 2,500 2,255 2,212 BSEK (4.3) 2,000 1,500 1,000 0,500 0,000 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q424 19
Slide 20: Improved working capital and return on capital
BUSINESS AREA INDUSTRY Improved working capital and return on capital Capital employed and return on capital employed* 14,000 12% 11,885 11,805 12,000 10% 10,807 10,957 10,807 10,762 10,699 10,000 9,266 9,376 Return on capital 8% employed 8,000 6,000 6% 8.6 % (7.2) 4% 4,000 2,000 2% 0,000 0% Q421 Q1
Slide 21: Business area Project Development
Business area Project Development THE CORNER Malmö, Sverige 21
Slide 22: Business area Project Development
Business area Project Development Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Net sales 1,456 1,986 5,722 8,661 Operating profit 17 309 304 1,127 Operating margin, % 1.2 15.6 5.3 13.0 of which Housing Development -4.6 14.7 3.8 11.5 22
Slide 23: Low level of housing start-ups and sales
BUSINESS AREA PROJECT DEVELOPMENT Low level of housing start-ups and sales Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Total number of housing start-ups 79 314 7271 2,3361 of which tenant-owner associations, - 130 1211 1,8101 ownership and residential limited companies of which in rent
Slide 24: Own housing development production
BUSINESS AREA PROJECT DEVELOPMENT Own housing development production Dec 31, Dec 31, Number 2023 2022 Total number of homes under production 3,694 5,718 of which tenant-owner associations, ownership and 2,392 4,539 residential limited companies of which in rental apartment projects 1,3021 1,1791 Sh
Slide 25: Ongoing property projects in Property Development
BUSINESS AREA PROJECT DEVELOPMENT Ongoing property projects in Property Development Total Recognized Rentable Degree investment at Scheduled Level of Type of project Location value, area, m2 rented, % completion, completion completion, % MSEK MSEK Office building Jönköping 3,200 100 104 106 Complete
Slide 26: Increased investments and unsold homes tie up capital
BUSINESS AREA PROJECT DEVELOPMENT Increased investments and unsold homes tie up capital Capital employed and return on capital employed* 20,000 12% 18,017 18,093 18,000 17,351 16,226 10% 15,632 16,000 14,173 14,000 13,523 13,624 13,911 Return on capital 8% employed 12,000 10,000 8,000 6% 4% 2.2 % (8
Slide 27: The Peab Group
The Peab Group 27
Slide 28: Segment reporting
THE GROUP Segment reporting Oct-Dec Oct-Dec Jan-Dec Jan-Dec MSEK 2023 2022 2023 2022 Net sales 15,639 17,048 58,821 63,135 Operating profit 133 853 1,853 2,741 Operating margin, % 0.9 5.0 3.2 4.3 28
Slide 29: Good presence in the Nordic region
THE GROUP Good presence in the Nordic region Net sales, 2023 12% 72% 14% (13) (70) (15) 2% (2) 29
Slide 30: The share of public customers increases
THE GROUP The share of public customers increases Net sales, 2023 48% 52% (43) (57) BLUE LIGHT HOUSE Emmaboda, Sweden Public customers Private customers 30
Slide 31: Lower order backlog but continued good risk diversification
THE GROUP Lower order backlog but continued good risk diversification Orders received Order backlog Share of projects under MSEK 500 45.1 39.1 80% BSEK (53.3) BSEK (44,4) (81) FILFABRIKEN Trollhättan, Sweden 31
Slide 32: Lower level of order backlog
THE GROUP Lower level of order backlog Order backlog allocated over time, MSEK 35 000 30 000 28 789 25 566 25 000 20 000 15 000 35% after coming 11 445 10 083 financial year 10 000 (35) 4 155 3 411 5 000 0 Coming financial year Thereafter coming Thereafter financial year December 31, 2022 December 3
Slide 33: Improved working capital affected positively in the fourth quarter
THE GROUP Improved working capital affected positively in the fourth quarter Cash flow before financing, MSEK 3,000 2,465 2,000 1,462 1,000 805 450 0,000 -323 -1,000 -897 -908 -1,540 -2,000 -2,321 -3,000 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 33
Slide 34: Improved net debt and net debt/equity ratio
THE GROUP Improved net debt and net debt/equity ratio Net debt and net debt/equity ratio 14,000 0,9 0,8 12,000 0,7 10,000 2,868 Net debt 0,6 2,918 8,000 6,000 1,573 2,209 2,612 2,685 0,5 0,4 8.7 BSEK (6.9) 1,768 0,3 8,849 4,000 7,255 5,991 0,2 4,690 5,372 2,000 958 4,628 4,118 947 0,1 1,446 1,418 0,
Slide 35: Target checkpoint
CQ : - a. o a : E- @: ° wet Ma 8 iB \ le ] aX er 8 Oe Noa : 3 r. J 1 vay oe ‘ ls Target checkpoin I ey yOu
Slide 36: 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 Operating margin Most profitable Leader in social Carbon dioxide Carbon dioxide intensity company >6 % responsibilt
Slide 37: Financial targets
Financial targets
Slide 38: Target: Operating margin over 6 percent
MOST PROFITABLE COMPANY Target: Operating margin over 6 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 4 3.2 3 2.5 2 1 0 2016 2017 2018 2019 2020* 2021 2022 2023** *Operating margin exclusive effect of the distribution of Annehem Fastigheter of MSEK 952. ** Operatin
Slide 39: Target: Net debt/equity ratio within interval 0.3-0.7
MOST PROFITABLE COMPANY Target: Net debt/equity ratio within interval 0.3-0.7 Net debt/equity ratio, Group 1,0 0,8 0.6 0,6 0.6 0.5 Target: 0.3-0.7 0,4 0.3 0.3 0,2 0.2 0,2 0.1 0,0 2016 2017 2018 2019 2020 2021 2022 2023 Years 2016-2018 are not translated according to the changed accounting principle
Slide 40: Target: Dividend more than 50 percent of profit for the year
STRATEGIC TARGET Target: Dividend more than 50 percent of profit for the year Dividend, % of profit for the year Dividend, SEK 120 96 97 100 8,00 7.00 7,00 80 61 67 Target: 6,00 5.00 58 59 59 58 4.50 60 >50% 5,00 4.20 4,00 3.60 4.00 4.00 2.60 40 30 3,00 2,00 1.50 20 1,00 0,00 0 2015 2016 2017 2018 2
Slide 41: Focus on quality in our delivery
MOST SATISFIED CUSTOMERS Focus on quality in our delivery Customer Satisfied index (CSI) 82 81 80 80 80 80 78 78 76 75 75 Target: >75 74 73 73 72 70 68 2015 2016 2017 2018 2019 2020 2021 2022 2023 41
Slide 42: First choice for jobseekers
BEST WORKPLACE First choice for jobseekers eNPS, recommend Peab 35 29 30 28 27 26 24 25 22 20 21 Target: 19 19 19 18 18 20 Over 15 eNPS 15 13 Benchmark industry 10 10 10 8 8 8 benchmark 5 0 2018 2019 2019 2020 2021 2021 2022 2022 2023 2023 Q4 Q2 Q4 Q4 Q2 Q4 Q2 Q4 Q2 Q4 42
Slide 43: Zero vision for workplace accidents
BEST WORKPLACE Zero vision for workplace accidents Serious accidents, rolling 12 months, category 4 60 54 48 48 49 48 50 43 39 40 40 36 34 Target: 32 32 33 30 30 30 28 30 30 Contracting 30 27 27 26 25 trend 20 19 18 20 20 18 16 18 18 16 23 21 21 18 19 19 18 10 16 10 14 14 14 14 14 14 11 0 2020 2021
Slide 44: 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 Target 2030: -60% 40 20 Actual 2023: -49% 0 * Direct and indirect emissions as a result of using fuel and energy in our own production 44
Slide 45: 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 2023: - 9 % 80 60 Target 2030: -50 % 40 20 0 * Includes concrete/cement, asphalt/bitumen, transportation and machine services,
Slide 46: Equal opportunity recruitment: Number of women always over education market
LEADER IN SOCIAL RESPONSIBILITY Equal opportunity recruitment: Number of women always over education market Production and processing* (SW), % 50% 45.0% 45.3% 40% 34.9% 30% 20% 18.8% 10% Target 2023: >30% 0% 2020 2021 2022 2023 Target 2024: >30% *27 years or younger Production management and product
Slide 47: The market continues to be divided
JAN-DEC 2023 The market continues to be divided • The trend with a weak Nordic housing market is expected to continue, while the market for civil engineering is expected to be stable • Lower level of orders received and order backlog due to low demand on housing projects • Construction and Project D
Slide 48: Q&A
Q&A
Slide 49: Capital Markets Day in Stockholm
Q1 Capital Markets Day in Stockholm February 13, 2024 Next report: First quarter 2024 May 6, 2024 49
Slide 50: Thank you!
Thank you! =PEAB=