Slide 1: Q2 January - June 2023
Q2 January - June 2023 July 14, 2023 STUDENT HOUSING Turku 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: Decline for other building construction, but Norway is up
MARKET OUTLOOK Decline for other building construction, but Norway is up 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: Civil engineering investments on a stable level
MARKET OUTLOOK Civil engineering investments on a stable level Civil engineering investments 2023 2024 2025 Sweden ↘ ↗ ↗ 2023 2024 2025 Norway ↗ ↗ → 2023 2024 2025 Finland → ↗ → Source: Navet 4
Slide 5: Lower investment level in the Nordic market
MARKET OUTLOOK Lower investment level 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 6
Slide 7: Business area Construction
Business area Construction Apr-Jun Apr-Jun Jul 2022- Jan-Dec MSEK 2023 2022 Jun 2023 2022 Net sales 7,540 7,628 29,598 28,999 Operating profit excl. 141 177 595 629 Mall of Scandinavia Operating margin excl. 1.9 2.3 2.0 2.2 Mall of Scandinavia, % Operating profit 541 177 995 629 Operating margin, %
Slide 8: Lower level of orders received and order backlog
BUSINESS AREA CONSTRUCTION Lower level of orders received and order backlog Orders received, MSEK 12,000 Order backlog 10,000 9,561 8,000 6,088 8,225 5,995 6,926 8,490 6,321 6,563 25.8 BSEK (28.8) 6,000 4,804 4,000 2,000 0,000 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 BRF Å-PROMENADEN Nyköping 8
Slide 9: New assignments, not least from public customers
BUSINESS AREA CONSTRUCTION New assignments, not least from public customers National Archives Logistics facilities Swimming pool High school (800 MSEK) (700 MSEK) (209 MSEK) (18 MEUR) Härnösand Helsingborg Helsinki Haparanda 9
Slide 10: Allocation per product area
BUSINESS AREA CONSTRUCTION Allocation per product area Net sales, rolling 12 months Order backlog, June 30, 2023 Housing Housing 9% 8% Construction Construction 7% maintenance Sports facilities 8% maintenance Sports facilities Industrial 37% Industrial 12% 43% Offices 13% Offices Logistics Logistics
Slide 11: Business area Civil Engineering
Business area Civil Engineering SUSPENSION BRIDGE Tyresö 11
Slide 12: Business area Civil Engineering
Business area Civil Engineering Apr-Jun Apr-Jun Jul 2022- Jan-Dec MSEK 2023 2022 Jun 2023 2022 Net sales 3,891 3,893 15,208 14,965 Operating profit 152 148 504 494 Operating margin, % 3.9 3.8 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 3,612 3,583 3,016 2,904 3,891 15.1 BSEK (16.4) 3,000 2,618 2,000 1,000 0,000 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 PEAB CIVIL ENGINEERING
Slide 14: New contracts in the second quarter
BUSINESS AREA CIVIL ENGINEERING New contracts in the second quarter Civil engineering Extension of waste Test track for vehicles work for an water treatment plant (730 MSEK) industrial areea (400 MSEK) (355 MSEK) Södertälje Timrå Trollhättan 14
Slide 15: Allocation per product area
BUSINESS AREA CIVIL ENGINEERING Allocation per product area Net sales, rolling 12 months Order backlog, June 30, 2023 18% Operations and Operations and maintenance 25% maintenance 29% Energy Energy 37% 6% Streets and groundwork Streets and groundwork Ports and sea Ports and sea 8% Industrial Industr
Slide 16: Business area Industry
Business area Industry LJUNGBYHED AIRPORT Ljungby 16
Slide 17: Business area Industry
Business area Industry Apr-Jun Apr-Jun Jul 2022- Jan-Dec MSEK 2023 2022 Jun 2023 2022 Net sales 5,347 6,108 20,880 21,433 Operating profit 333 341 700 747 Operating margin, % 6.2 5.6 3.4 3.5 17
Slide 18: Allocation per product area
BUSINESS AREA INDUSTRY Allocation per product area Net sales, rolling 12 months 7% Paving 10% Concrete 8% Mineral Aggregates 49% Transportation and Machines 13% Rentals Construction System 13% 18
Slide 19: Lower level of orders received
BUSINESS AREA INDUSTRY Lower level of orders received Orders received, MSEK 4,500 4,000 3,835 Order backlog 3,614 6.1 3,500 3,159 2,999 3,127 3,000 2,689 2,500 2,255 2,212 BSEK (7.0) 2,012 2,000 1,500 1,000 0,500 0,000 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 19
Slide 20: More capital tied-up in investments and working capital
BUSINESS AREA INDUSTRY More capital tied-up in investments and working capital Capital employed and return on capital employed* 14,000 12% 11,885 12,000 10% 10,807 10,957 10,807 10,762 9,764 Return on capital 10,000 9,388 9,266 9,376 8% employed 8,000 6,000 6% 6.4 % (9.6) 4% 4,000 2,000 2% 0,000 0%
Slide 21: Business area Project Development
Business area Project Development HAVSBADEN Ängelholm 21
Slide 22: Business area Project Development
Business area Project Development Apr-Jun Apr-Jun Jul 2022- Jan-Dec MSEK 2023 2022 Jun 2023 2022 Net sales 1,569 1,977 7,630 8,661 Operating profit 114 264 815 1,127 Operating margin, % 7.3 13.4 10.7 13.0 of which Housing Development 5.7 11.9 9.4 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 Apr-Jun Apr-Jun Jul 2022- Jan-Dec Number 2023 2022 Jun 2023 2022 Total number of housing start-ups 185 828 1,267 2,336 of which tenant-owner associations, ownership - 528 639 1,810 and residential limited companies of which
Slide 24: Own housing development production
BUSINESS AREA PROJECT DEVELOPMENT Own housing development production Jun 30, Jun 30, Dec 31, Number 2023 2022 2022 Total number of homes under production 4,665 5,910 5,718 of which tenant-owner associations, ownership and 3,392 4,835 4,539 residential limited companies of which in rental apartment
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 Malmö 7,400 67 277 331 Completed 84
Slide 26: Lower sales result in higher working capital
BUSINESS AREA PROJECT DEVELOPMENT Lower sales result in higher working capital Capital employed and return on capital employed* 20,000 18% 18,000 17,351 16% 16,226 15,632 16,000 14% 13,911 14,173 Return on capital 14,000 13,258 13,685 13,523 13,624 12% employed 12,000 10% 10,000 8,000 8% 6% 5.6 % (1
Slide 27: The Peab Group
The Peab Group 27
Slide 28: Segment reporting
THE GROUP Segment reporting Apr-Jun Apr-Jun Jul 2022- Jan-Dec MSEK 2023 2022 Jun 2023 2022 Net sales 15,756 16,858 62,179 63,135 Operating profit excl. 690 885 2,380 2,741 Mall of Scandinavia Operating margin excl. 4.4 5.2 3.8 4.3 Mall of Scandinavia, % Operating profit 1,090 885 2,780 2,741 Operati
Slide 29: Good presence in the Nordic region
THE GROUP Good presence in the Nordic region Net sales, rolling 12 months 70% 15% (14) 13% (72) (13) 2% (1) 29
Slide 30: The share of public customers increases
THE GROUP The share of public customers increases Net sales, rolling 12 months 46% Public customers 54% (41) Private customers (59) NEW PSYCHIATRIC HOSPITAL Kalmar 30
Slide 31: Order backlog with good risk diversification
THE GROUP Order backlog with good risk diversification Orders received Order backlog Share of projects under MSEK 500 23.5 43.6 79% BSEK (29.7) BSEK (49.9) (86) 31
Slide 32: Low level of order backlog
THE GROUP Low level of order backlog Order backlog allocated over time, MSEK 25,000 21,435 20,000 18,998 19,277 16,558 15,000 9,187 56% after current 10,000 8,082 financial year 5,000 (57) 0,000 Current financial year Coming financial year Thereafter Jun 30, 2022 Jun 30, 2023 32
Slide 33: Working capital and investments charge cash flow
THE GROUP Working capital and investments charge cash flow Cash flow before financing, MSEK 3,000 2,465 2,000 1,000 781 805 0,000 -97 -323 -1,000 -897 -908 -1,540 -2,000 -2,321 -3,000 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 33
Slide 34: Net debt affected by investments, working capital and paid dividend
THE GROUP Net debt affected by investments, working capital and paid dividend 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 8,000 6,000 1,705 2,209 2,612 0,5 0,4 11.7 BSEK (6.3) 968 1,768 0,3 8,849 4,000 947 0,2 4,690 5,372 2,000 4,456 1,573 4,628 4,118 3,514
Slide 35: Target checkpoint
Target checkpoint
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: Operating margin over 6 percent
MOST PROFITABLE COMPANY Operating margin over 6 percent Operating margin, Group 7 6.2 Target: 6% 6 5.2 4.8 4.9 4.7 5 4.4 4.5 4.3 4.5 4 3.8 3 2 1 0 *Operating margin exclusive effect of the distribution of Annehem Fastigheter of MSEK 952. ** Operating margin exclusive effect of mall of Scandinavia of
Slide 38: 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 0,8 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 Years 2016-2018 are not translated according to the changed accounting principles for our own housing development projects. 38
Slide 39: Zero vision for workplace accidents
BEST WORKPLACE Zero vision for workplace accidents Serious accidents, rolling 12 months, category 4 60 54 48 48 49 50 39 43 40 34 36 33 Target: 32 32 30 30 30 30 28 27 30 27 Contracting 25 20 trend 18 18 20 18 19 18 20 16 16 14 23 21 21 18 19 19 10 16 10 14 14 14 14 11 0 2020 2021 2022 2023 Jan Mar
Slide 40: First choice for jobseekers
BEST WORKPLACE First choice for jobseekers eNPS, recommend Peab 35 29 30 28 27 24 25 22 20 21 Target: 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 2022 Q4 Q2 Q4 Q4 Q2 Q4 Q2 Q4 Q2 40
Slide 41: The divided market trend continues
JAN-JUN 2023 The divided market trend continues • The trend with a weak housing market continues. Investments connected to the public sector on a stable level • Lower level of orders received and order backlog • Fewer home sales and production-starts affects both our ability to generate profits and
Slide 42: Next report: Third quarter 2023
Q3 Next report: Third quarter 2023 October 27, 2023 42
Slide 43: Thank you!
Thank you! =PEAB=