Slide 1: Q3 January - September 2020
Q3 January - September 2020 October 22, 2020 MEDBORGARHUSET Stockholm 1
Slide 2: Unchanged market outlook
MARKET OUTLOOK Unchanged market outlook Total construction and civil engineering investments, new and renovations 2019 2020 2021 Sweden +4% ↘ → 2019 2020 2021 Norway -5% → → 2019 2020 2021 Finland -4% ↘ ↘ Source: Navet Analytics AB 2
Slide 3: Housing investments decreasing
MARKET OUTLOOK Housing investments decreasing Started-up housing investments, new and renovations 2019 2020 2021 Sweden -9% ↓ ↘ 2019 2020 2021 Norway 0% ↘ (↓) ↘ 2019 2020 2021 Finland -12% ↓ ↘ 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 2019 2020 2021 Sweden +6% ↘ → 2019 2020 2021 Norge -14% ↗ → 2019 2020 2021 Finland +4% →(↘) →(↘) Source: Navet Analytics AB 4
Slide 5: Civil engineering supported by public spending
MARKET OUTLOOK Civil engineering supported by public spending Civil engineering investments 2019 2020 2021 Sweden +18% → → 2019 2020 2021 Norway +20% ↗(↑) ↑ 2019 2020 2021 Finland -2% ↗ ↘ Source: Navet Analytics AB 5
Slide 6: Business area Construction
Business area Construction TROMSØBADET Tromsø 6
Slide 7: Business area Construction
Business area Construction Jul-Sep Jul-Sep Oct 2019- Jan-Dec MSEK 2020 2019 Sep 2020 2019 Net sales 5,798 6,520 27,912 29,416 Operating profit 137 150 673 711 Operating margin, % 2.4 2.3 2.4 2.4 7
Slide 8: Growth in other building construction
BUSINESS AREA CONSTRUCTION Growth in other building construction Net sales, rolling 12 months 31% Housing 37% Other building construction, private Other building construction, public 32% VARVSSTADEN Malmö 8
Slide 9: Continued stable level of orders received
BUSINESS AREA CONSTRUCTION Continued stable level of orders received Orders received, MSEK 9,000 8,000 7,789 Orders received 7,449 6.3 7,000 6,269 6,259 6,000 5,213 5,000 BSEK (5.2) 4,000 3,000 2,000 1,000 0,000 Q319 Q419 Q120 Q220 Q320 ARENA ÄLVHÖGSBORG Trollhättan 9
Slide 10: Good variation in type of product and geography
BUSINESS AREA CONSTRUCTION Good variation in type of product and geography Construction of new Construction of New police station Renovation of rental apartments indoor swimming (MSEK 430) school (MEUR 11) (MSEK 402) pool (MSEK 133) Indoor Police swimming Rental station in High school in pool in apa
Slide 11: Good distribution over time
BUSINESS AREA CONSTRUCTION Good distribution over time Order backlog allocated over time, MSEK 18,000 15,945 16,511 78% 16,000 14,000 12,000 10,000 2021 and 8,000 6,772 thereafter 6,038 6,000 4,686 4,941 4,000 2,000 0,000 Current financial year Next financial year Thereafter Sep 30, 2019 Sep 30, 202
Slide 12: Business area Civil Engineering
Business area Civil Engineering E20 Vårgårda-Alingsås 12
Slide 13: Business area Civil Engineering
Business area Civil Engineering Jul-Sep Jul-Sep Oct 2019- Jan-Dec MSEK 2020 2019 Sep 2020 2019 Net sales 3,041 3,257 13,035 13,339 Operating profit 92 76 392 367 Operating margin, % 3.0 2.3 3.0 2.8 13
Slide 14: Higher net sales in Infrastructure
BUSINESS AREA CIVIL ENGINEERING Higher net sales in Infrastructure Net sales, rolling 12 months 32% Local market Operations and 52% maintenance Infrastructure and heavy construction 16% ESKILSTUNA TRAIN DEPOT Eskilstuna 14
Slide 15: Continued stable level of orders received
BUSINESS AREA CIVIL ENGINEERING Continued stable level of orders received Orders received, MSEK 4,000 3,679 3,435 3,493 3,500 Orders received 3.1 3,100 3,000 2,862 2,500 2,000 BSEK (2.9) 1,500 1,000 0,500 0,000 Q319 Q419 Q120 Q220 Q320 THE LITS BRIDGE, INDALSÄLVEN Östersund 15
Slide 16: Several new port contracts
BUSINESS AREA CIVIL ENGINEERING Several new port contracts New production line Construction of new Construction of port Extension of port at water plant main street terminal (MSEK 345) (MSEK 150) (MNOK 428) (MSEK 237) Vombverket Main street in Port terminal in Veberöd, The port in Lørenskog, in Aren
Slide 17: Good distribution over time
BUSINESS AREA CIVIL ENGINEERING Good distribution over time Order backlog allocated over time, MSEK 8,000 7,000 6,731 6,303 77% 6,000 5,000 4,069 4,069 4,000 3,251 3,282 2021 and 3,000 thereafter 2,000 1,000 0,000 Current financial year Next financial year Thereafter Sep 30, 2019 Sep 30, 2020 17
Slide 18: Business area Industry
Business area Industry ROAD 109 Ekeby 18
Slide 19: Business area Industry
Business area Industry Jul-Sep Jul-Sep Oct 2019- Jan-Dec MSEK 2020 2019 Sep 2020 2019 Net sales 6,233 3,820 17,838 13,339 Operating profit 471 360 1 071 937 Operating margin, % 7.6 9.4 6.2 7.0 19
Slide 20: Growth in Paving and Mineral Aggregates
BUSINESS AREA INDUSTRY Growth in Paving and Mineral Aggregates Net sales, rolling 12 months 5% 14% Paving Concrete 44% 12% Mineral Aggregates Transportation and 13% Machines 12% Rentals Construction System TINGSTAD TUNNEL Gothenburg 20
Slide 21: 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 Orders received 3,000 2,500 2,175 2.2 MSEK (1.1) 2,000 1,803 1,500 1,399 1,096 1,000 0,500 0,000 Q319 Q419 Q120 Q220 Q320 Patavuorit Quarry Valkeakoski 21
Slide 22: 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% 14% 10,000 12% Return on capital 8,000 employed 10% 6,000 8% 6% 13.2% (14.6) 4,000 4% 2,000 2% 0,000 0% Q319 Q419 Q120 Q220 Q320 Capital employed, MSEK Return
Slide 23: Business area Project Development
Business area Project Development CARL BERNER SQUARE Oslo 23
Slide 24: Business area Project Development
Business area Project Development Jul-Sep Jul-Sep Oct 2019- Jan-Dec MSEK 2020 2019 Sep 2020 2019 Net sales 1,750 2,015 8,380 9,125 Operating profit 162 221 752 1 015 Operating margin, % 9.3 11.0 9.0 11.1 of which Housing Development 8.9 10.2 8.9 8.6 24
Slide 25: Even level of housing start-ups and continued good sales
BUSINESS AREA PROJECT DEVELOPMENT Even level of housing start-ups and continued good sales Jul-Sep Jul-Sep Oct 2019- Jan-Dec Number 2020 2019 Sep 2020 2019 Housing start-ups 591 522 2 150 2 067 Sold homes 730 695 2 773 2 709 Repurchased homes on the balance sheet at the 195 169 195 253 end of the pe
Slide 26: 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 4,056 72% LILLHAGSPARKEN Gothenburg 26
Slide 27: Capital employed affected by distribution of Annehem Fastigheter
BUSINESS AREA PROJECT DEVELOPMENT Capital employed affected by distribution of Annehem Fastigheter and high level of sales Capital employed and return on capital employed 18,000 7% 16,000 6% 14,000 5% Return on capital 12,000 employed 5.6 10,000 4% 8,000 3% 6,000 % (-) 2% 4,000 1% 2,000 0,000 0% Q31
Slide 28: The Peab Group
The Peab Group 28
Slide 29: Segment reporting
THE GROUP Segment reporting Jul-Sep Jul-Sep Oct 2019- Jan-Dec MSEK 2020 2019 Sep 2020 2019 Net sales 14,837 13,301 57,851 55,349 Operating profit 844 763 2 513 2 610 Operating margin, % 5.7 5.7 4.3 4.7 29
Slide 30: Local presence in all the Nordic countries
THE GROUP Local presence in all the Nordic countries Net sales, rolling 12 months 14% 73% 12% 1% 30
Slide 31: 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 11.7 44.7 82% MSEK (9.3) MSEK (43.8) 31
Slide 32: Strong cash flow in third quarter
THE GROUP Strong cash flow in third quarter Cash flow before financing, MSEK 2,000 1,597 1,683 1,500 1,256 0,935 1,000 0,500 0,000 -0,500 -0,179 -1,000 -0,987 -1,500 -2,000 -2,500 -2,264 Q119 Q219 Q319 Q419 Q120 Q220 Q320 32
Slide 33: Improved financial position
THE GROUP Improved financial position Net debt and debt/equity ratio 9,000 0,8 8,000 0,7 7,000 0,6 6,000 Net debt 5.8 0,5 5,000 0,4 4,000 0,3 BSEK (8.5) 3,000 0,2 2,000 1,000 0,1 0,000 0 Q319 Q419 Q120 Q220 Q320 Other debt, MSEK Unsold part of housing projects, MSEK Debt/equity ratio, times 33
Slide 34: Our financial goals
THE GROUP Our financial goals Equity/assets ratio, % Return on equity, % 35 3.3 3.3 3.2 3.0 25 3.0 30 2.8 2.9 2.1 2.5 2.0 2.0 2.5 2.4 20 1.8 25 1.5 20 15 1.3 1.2 15 0.9 1.0 10 10 5 0.4 5 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* Goal Go
Slide 35: Distribution and listing of Annehem Fastigheter
Distribution and listing of Annehem Fastigheter • October: Information Memorandum • November 12: Extra General Meeting • December: Publication of prospect Capital market day Annehem Fastigheter Distribution and listing PEAB CENTER Malmö ULLS HUS Uppsala 35
Slide 36: Stable level of orders received and strong cash flow
JAN-SEP 2020 Stable level of orders received The work to achieve our and strong cash flow strategic goals continues • Stable level of orders received, strong cash flow and lower net debt • Integration of acquired units continues and operations develop according to plan • Unchanged market outlook • P
Slide 37: Next quarterly report and capital market day
Q4 Next quarterly report: February 4, 2021 Capital market day: February, 2021 GOLDFINGER Helsinki 37
Slide 38: Thank you!
Thank you! =PEAB=