Peab AB (publ)

Hello and welcome to the telephone conference where we present PEAB's report on the results of the signing after the first quarter of 2023. My name is Johan Hartman and next to me, as usual, are Gester Göransson, the CEO of PEAB, and Niklas Winkvist, the CFO of PEAB. Gester and Niklas will start the day, So, Jesper.

Thank you very much and once again welcome to our presentation of Q1 2023. We will start by looking at the market prognoses that we have left today. And we also need housing investments. And already when we talked about this in the first quarter, the first quarter fell down. And in 2022, the housing investments became lower than many people had expected. If we look at 2023, we expect the emissions to decrease. And the expectations have been further reduced in all three countries. The pile in Sweden is still down. It can't be any lower than that. . . . . . . ... ... ... ... ... ... ... ... In Norway So if you look at the total of the housing and construction investments together, we have a further decrease in Sweden in terms of housing.

And also in Finland, while we have the up-to-date prognosis in Norway, which has to do with the upper house building. It is the market intentions. If we then look further at our business areas for the quarter and start with construction, and then we can also mention that this picture is from Solna Simmal, which is also the year's construction history, which we think is really funny. Bygda, vad gäller nettomsättningen för första kvartalet så hade vi en ökning med 10% och vi landade på 7,4 miljarder. Och ökningen gäller samtliga länder och beror till stor del på de fortsatt höga kostnaderna för material och energi, vilket har påverkat prissättningen till kund. Vårt resultat landade på 162 miljoner, vilket är ganska oförändrat med 34, och det innebär att vi landade på en marginal som är på 2,5

which is a drop from 6 billion. and has a higher proportion of housing projects for public sellers. The annual stock is at 26.6 billion, which is still a good level, while the proportion of housing projects is decreasing. It's a public building project that we will see in the future. A choice of projects that we have received during the quarter. It's a lot of public activity. It's a police house in Malmö. Det är hyresrätter i Hansa. Det är en stimmhall i Nacka och det är en ishall i Stockholm. Det är en aktieplockning av de projekt som vi har fått in under ett antal år. . . . . . . ... ... ... ... ... ... Kontor ökar i årsdokken och det är projektets turistkvarter i Stockholm som jag håller med om som kontorsutbyggnad. Liksom det polishuset som jag precis nämnde i Malmö som också ligger registrerat som kontor. ... ... ... ... ... Resultatet gick upp litegrann till 59 miljoner och det innebar att marginalen uppgick till 1,8 jämfört med 1,7.

Slår vi ihop rörelsemarginalen för bygg och för anläggning till det som vi kallar för vår entreprenadmarginal så landade den på 2,1% jämfört med 2,2 motsvarande kvartal i fjol. Orderingång och ordstrock vad gäller orderingången. så minskar det något under kvartalet till 4,4 miljarder, jämfört med 5, med ett ganska litet slag i det under ett kvartal. Ålderstocken ligger på 15,1 miljard, vilket är en fortsatt god nivå. Tittar vi på rullande 12 månader så har vi en bra spridning mellan geografi och produktområden inom anläggning. Gato- och markarbeten står för 35 procent av omsättningen, och vägar och annan infrastruktur står för 29 procent av omsättningen.

If we look at the order block, we see that the market value for 25% is much lower. This has to do with the cost of building that falls, while the value of infrastructure is 36%. ... ... ... ... ... . . . The first quarter for industry increased by 8%, up to 2.8 billion. And we have an increase that is related to more parts of the product market. The result landed at minus 435. which is a little less than the first quarter in February, but that has to do with the size of the business, so the margin is quite large, and has landed at minus 5.7. The continued increase in energy and energy efficiency has been handled this year in the pricing of And through adjustments and efficiencies in our business. If we look at the distribution of product areas, then the supply of the business is now 49%. ... ... ... ... ... And in the orderly period, the orderly period was 2.7 billion against 3.8 billion. So that's a decline of about a billion. And the main explanation is that we have been more selective in the housing market in Norway, where we have We had challenges afterwards. So now we have chosen to withdraw from that business. We have a stock of 6.1 billion. And it is a downfall of 7 billion.

The last capital in the industry, which binds a lot of capital, is 10.8 billion. And the increase that is happening is explained with investments in machines and in production facilities, and partly also in increased sales capital. 6.6 percent of the revenue is spent on rolling tolls, which has something to do with the decline in profitability, especially in the construction industry, which affects the figures. And then we look at the project development industry, where the turnover landed at 1.8 billion, which is a decline from 2.5 billion. And all of this is, in principle, related to housing development. What has happened in the first quarter is that I have seen an additional decrease in the markets in Finland.

You had a much higher quality in Finland compared to Sweden and Norway over the years. . . . ... ... ... ... ... Vi har startat 298 bostäder under första kvartalet jämfört med 724. And the demand for new production facilities throughout the Nordic countries, with a long-term impact on immigration, has continued to decrease. As a result of the rise in interest rates and the fact that the infrastructure is still there. um um Thank you. ... ... ... ... ... Bostås är då i kris i år jämfört med 800 motståndare kvartal i 2021-2022. 101 av de här var då bostadsrätter. Och 144 avslag på hyresrestriktioner.

Here we see the production-started houses in the quarter. We have run 45 houses in Vänersborg. We have run 86 houses in Västerås, 40 houses in Gothenburg and 91 houses in Malmö. In total, we had a little over 5,000 houses in production of almost 3,900 housing rights and 1,200 housing rights projects. And 66% of these houses in production are sold, which is compared to 77% in the same period last year. The number of repurchased houses has increased a little bit to 238, and most of them are in Finland.

In terms of housing development, as I said, there are no major transactions Vi har tre stycken projekt som vi pågår i egen bok. Det är ett kontor i Malmö som då är närmast Södertälje. Det är ett kontor i Jönköping. Det är ett kontor i Göteborg. ... ... ... ... ... ... ... ... and now we are at 6.9%. The increase in household capital is explained by the fact that we then build more household projects in our own book, which we do without strategic choice. Men vi binder också med pengarna i verksamheten nu när andelen såld faller. Då binder vi med de som är kapitala. Det sammanfattar att vi har verksamhetsområden och lämnar över till den delen av koncernen. Then we will look at the figures for the PM-company as a whole. And then we see that the company's net revenue increased by 1% and rose to 12.7 billion. ... ... ... ... ... ...påverkat då prissättningen till kunder därmed omsättningen. Från startet uppgift till minus 156 miljoner att jämföra med 10 miljoner plus föregående år. The biggest explanation is the case we have seen in housing development.

Over the past 12 months, we have a turnover of over 63 billion, with a 4.1% turnover margin. Vi fortsätter att ha en god spridning i Norden. 70 % av verksamheten är i Sverige och ganska jämnt fördelat mellan Norge och Finland. Sedan har vi 2 % av omsättningen i Danmark. Det är endast beläggningsverksamhet som vi har där. Vi har en stor och växande andel av offentliga kunder inom bygg och anläggning och även inom industri. Där har ju beläggningen stor andel av sin omsättning till stat och kommun.

Och idag står det de offentliga kunderna för att förgyllas av omsättningen. Den här fördelningen bidrar till stabiliteten och gör oss också mindre konjunkturkänsliga. Som vi hörde tidigare så offentligt husbyggande och anläggningsinvesteringar är ju de mest stabila makten. ... ... ... ... ... ... ... ... uh ... ... ... ... ... ... Thank you. Thank you. är den också på en ny nivå av den totala orderstocken som förväntas 42% att produceras efter kommande räkenskapsår. Det är ungefär samma fördelning som vi har haft tidigare år. ... ... ... ... ... ... ...

Thank you. Thank you. Nettoskulden uppgår till 8 miljarder att jämföra med 3 miljarder vid motsvarande tidpunkt i förgående år. Här ingår projektfinansiering för den osålda delen av vår egenutveckling.

Sen förklaras även ökningen av en ökad rörelsekapitalvinning samt att vi har ökad investeringar inom maskiner och även verksamheter. Nettoskuldsättningsskaden uppgår till 0.5, which is in the middle of our financial goal interval, 0.3 to 0.7. When it comes to the goal setting, we will go through the two financial goals, and then we will have the goal setting in place. icke-financiella mål när det lämnar över till Jesper. Vi har totalt nio externa mål. Som sagt, tre av dem kommer vi gå igenom här för detta kvar. When it comes to the financial goals, we have a goal of a rate margin of over 6%, based on the segment distribution. And that over 10% should exceed 6%. And that is based on a normal... ...conjuncture relationship. We are now at 4.1%. We have seen that cost inflation... ...and the market position... Net-to-school setting is going to be our second goal. Our second goal is to be in an interval between 03.00 . . . . . . I'll hand it over to Jesper. Thank you.

We'll look at the microfinancial goals. We'll talk about job opportunities, where we have a goal to have a decreasing trend. The starting point was at the change of year... 49 people, and now after the first quarter, the current trend is up to 54. So we have continued to increase a little bit there. And out of these 54, 33 were self-employed and 21 were under-employed. So it is mainly the trend for the self-employed who have gone the wrong way. It is unfortunate that the trend has not turned. Now the NIFS event is down during the month of March. We hope that this is the beginning of a downward trend.

Vi arbetar intensivt med de här frågorna och alla talar här på yttersta allvar i vår verksamhet. Det finns också andra nyckeltal vi har betonat som är kopplade till det här. Till exempel LTE 4 som fortsätter att gå på riktigt. So that there is definitely light in these issues as well. And this is an extremely important issue that we continue to work hard on. Därmed så är vi framme vid sammanfattningen av det här kvartalet. Och första kvartalet får sig alltid på den här säsongen utifrån vintern då och beläggningsaktivitet framför allt. Trenden vad gäller marknad fortsätter med en alldeles svagare marknad, medan investeringar som är kopplade till offentlig verksamhet är på en fortsatt stabil nivå. Marknadsutsikterna är generellt sett något nedforsterade. We continue to make strategic decisions And we continue to adapt our operations so that we become more effective. And last but not least, we also think that in the long term, there are very good opportunities for Thank you very much Jesper and Niklas. If you want to ask a question, press star 5 on your mobile devices. If you want to return the question, press star 5 again. Anders så är det bra också att ställa frågor skriftligen via vd-gränssnittet. Då tittar jag på frågan och så ställer jag frågan till Jesper och Niklas.

The next question comes from Albin Sandberg from Kepler-Tjuvriax. Please go ahead. Albin Sandberg, Kepler-Tjuvriax. Tolkar det lite som att det kanske blir lite tuffare marknadsutsikter och så vidare totalt kvartal mot kvartal. Men om man tittar på senaste kvartalet, kanske rullande 12, ställer det lite mot ett marginalmål och så vidare. Är det några delar inom er verksamhet där ni känner att nästan oavsett marknadsutsikterna så hade ni kunnat göra bättre? Och vad är de i så fall?

uh um ... ... ... ... ... ... There is a lot going on in the market right now. We have a certain degree of dependence on the short-term information regarding these contacts that we took in before the war and the times we are struggling with. We have an increased competition in the market when it comes to the official projects that exist. It's a good market to look for new actors, which presses the margins. We have a housing development market ... ... ... ... ... ... Ja, och så tänker jag strategin lite när det gäller nya starter, booster och så vidare. Som du säger, marknaden är tillfälligt svag och samtidigt med en långsiktig aktör. Har varit med länge. Är ni beredda att ta lite mer? ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...

It's the same thing as saying that we start the project at a lower sales level. It's just a matter of what form of approval you choose when you start it. We choose the right to hire, which can then be the right to hire on the way. There is a limit to how much time we can and dare. We have to follow that now, month by month, quarter by quarter. We have a capacity, and we have taken care of it. ... ... ... ...

And when it comes to debt, you can look at the ring target and so on. And I understand that you can't guide forward and so on. But sometimes you use a certain positive catapult ... ... ... ... Thank you very much. ... ... ... ... ... ... Thank you. Thank you. The next question comes from Eric Grant from Carnegie. Please go ahead. Good afternoon. I was going to ask a little bit about the weather forecast and how it plays into the volumes. The weather forecast is down 11% year over year. At the same time, it is... ... ... ... ... ... ...

The price component that exists in the order stock is of course to a large extent that we have around 10% inflation. The order stock we have today is to a large extent with today's prices, especially what we take in now. So that's how it looks. If we compare an order stock that today is at 44.6 billion to 50 billion, then the volume in that order stock is a greater decline than just in kronor.

But then... ... ... ... ... ... ... ... underprivileged type of contract. Precisely, so it was perhaps a little bit of what I was talking about, that if you think that you have one krona a year under the stock, which is processed during a period of inflation inflation inflation inflation inflation inflation inflation ... ... ... ... ... ... ... After February 2022, we have used it as a risk parameter to try to go into the regulatory index contracts. ... ... ... ... ... Just that. Okay, thank you very much. That was a more detailed question there. Then I thought I'd check a little about the volumes within the industry. You were talking about half a minute ago. If you think about the parts of industry, for example,

Is it related to real estate business? Is that a big part of the industry's business and therefore one should think about what one thinks about those volumes in the future, given the real estate market, or is it a relatively small proportion?

I can't say exactly what percentage, but it is clear that real estate investments in general draw a lot of volume from others, for example prefab but also things from our rental business. So you shouldn't say that the housing crisis doesn't affect the industrial business, because it does. But I can't say any direct proportion. I don't know if you want to try that, Niklas.

No, it's very difficult. You can see how we are with the different parts.

It's segmented in the industry, but there is also a flow. ... ... ... ... It's still the case that half of it is extension, and that's why we don't have a copy. Okay, thank you. And then, finally, I was going to ask the question about when you look at Thank you. Is this something that you think we need to look over for the next year? Or how are you in terms of safety with the spread of the virus? I don't know if I understood your question correctly. um um ... ... ... ... How do you see the possibility of

kring försäljningar inom FU? Ni har ju ett projekt som färdigställs här nu ganska mycket i närtid.

Det ligger i vår affärsidé att vi ska producera de där fastigheterna och hyra ut dem och sen ska vi avgifta dem när vi anser att läget är det rätta. Vår bedömning är att transaktionsmarknaderna fungerar och de finns där, men Givet det så är det klart att har vi färdiga projekt så står de ju någonstans på försäljningslistan. Men det är också givet att marknaden finns så att vi får betalt vad vi tycker är ett rimligt pris.

Okej, så det är i dagsläget i princip en prisfråga snarare än att det inte finns tagare.

Det finns tagare, men det handlar om att man ska hitta rätt pris. I don't see any more questions. Thank you for today's presentation. And welcome to the next report, which is on the 14th of July. And then we publish and present the report next year. So welcome to listen and take part in the report.