Peab AB (publ)

So, nu har klockan slagit ett, vilket betyder att vi kör igång. Hej och välkommen till dagens telefonkonferens, där vi presenterar PEABs rapport efter det andra kvartalet, det första halvåret 2023. Jag heter Johan Harteman och är IR-chef på PEAB. Som vanligt så kör vi en presentation av dagens rapport med PEABs vd och koncernchef Jesper Göransson och PEABs CFO Niklas Winkvist. Efter Jesper och Niklas presentation så har ni möjlighet att ställa frågor. Det kan ni göra antingen muntligen genom att trycka på stjärna 5 på era mobila enheter eller så kan ni skriva ner frågorna via webben här. Det gör ni längst ner på sidan där. Då kan jag läsa upp de frågorna efter presentationen. Jag upprepar de instruktionerna sen också. Vi släpper in Jesper här nu. Varsågod, Jesper.

Tack så mycket, Johan, och en gång varmt välkomna allihopa. Vi ska titta lite grann på marknadsutsikterna innan vi går in på siffrorna. Vi börjar med bostadsinvesteringar. Det är väl ingen kioskvälta annat än att trenden är nedåt vad gäller bostadsinvesteringar på samtliga av våra tre marknader. Det har ju varit så under något par tal nu, och det är fortfarande samma trend där. For 2023, we expect a decrease in all three countries on the Bostad side. It is a strong break-in, and it is of course the high interest rate level now, together with falling housing prices on the other markets, that makes the willingness to invest low for Bostad buyers, especially when it comes to projects that are long in the process of moving in. If we look at the construction of a house, så är bilden lite mer blandad. Vi ser nedgångar under 2023 i Sverige och Finland. En offentligt husbyggande och investeringar kopplat till grön omställning fortsätter att förväntas vara på en stabil nivå. I Norge däremot så förväntas den privata delen av övrigt husbyggande växa. I stöd av en uppgång inom industrin så ser vi en upprättsgående peng. The construction market has been stable for many years and continues to be stable. We see a certain decline in Sweden for 2023, but this is from very high levels, so the construction market is expected to be stable. In total, the market views are quite similar to the one we left in the Q1 report. What has happened is a certain decline in Norway. In general, we can say that housing is weak, while in areas such as public buildings, both housing and residential buildings, and investments related to the green transition, a more stable demand is expected. If we look at our business areas, starting with construction, we have a turnover for the quarter that fell to 7.5 billion. a weak decline of 7.6 million in the quarter. We have a underlying turnover result that has risen to 141 million and a turnover margin that has risen to 1.9%. It is a falling margin development and it is explained by the fact that there is a price pressure in the market due to the fact that Marknadssegmenten, exempelvis när bostäder går ner så tillströmmas aktörer till de segmenten där det finns ett gott utbud och då får vi en priskress. Sedan har vi också kvarvarande effekter från den höga inflationen som är kopplad till projekt som är tagna före krigsutbrottet i Ukraina som ger en viss utställning av marginalen. Sen fick vi en skiljedom den 30 juni i målet mellan PRB och Unibail Rodamco Westfield, avseende den tvist som vi har haft under många år kopplat till nationaldemokraterna Målås Scandinavia. Den domen innebar en positiv effekt i vårt rörelseresultat i byggverksamheten på 400 miljoner som redovisar i andra kvartalet. Så rörelseresultatet inklusive den effekten uppgifter 541 miljoner och då får vi en rörelsemarginal som landar på 7,2%. Ordering once through construction has decreased slightly. It has increased by 6.6% compared to 6.9%. I think it is on a stable level. Under the circumstances that I have just talked about, regarding a housing market that has stopped, I think that we through the construction business have managed to compensate for it very well when it comes to other projects. And we have an order stock that has fallen to 25.8 billion. If we look at some of the projects that are taken during the quarter, we see that there is a lot of public activity. We have the Riksarkiv that we are going to build up in Härnösand for special facilities. We have a swimming pool that we are going to build up in Haparanda, a high school in Helsingfors. And then we have a logistics facility that is not public activity, but that we are going to build in Katena in Helsingborg for SEK 700 million. And if we look at the distribution per product area, we see that housing stands for a significant part of the turnover. It is still 43% of what we produce in the building is housing. If we look at the same share, we are now down to 37%. And a year ago, this share was up to 54%. So here we can see how how the effects of the downfall of the housing market will be reflected in our order book, and then it will of course be reflected in the net sales. The number of offices is clearly increasing in the order block, and an example of this in Q2 is the Riksarkivet in Härnösand, which is an office. We also see an increase in logistics in the order block, and there we have the facilities in Helsingborg, which is a good example of this. And if we look at business and construction, they have a very stable turnover, basically unchanged, 3.9 billion SEK. And our result, which is also stable, 152 million SEK. And a margin that went up from 0.1 to 3.9%. Then we add up the margins for the construction and construction business to what we call our international business. So the margin for the second quarter went up to 2.6% compared to 2.8%. The order growth in the facility grew to 3.9 billion. A small decline from 4.4%, but I also think this is a stable level. We have an order stock when we went out of the quarter of 15.1 billion on the facility side. Ett urval av projekt här. Vi ska bygga en testbana för fordonet Scania uppe i Södertälje på 700 miljoner. Ett anläggningsarbete kopplat till ett industriumråde uppe i Timrå på 400 miljoner. Utbyggnad av avloppsredningsverk i Trollhättan på 355 miljoner. And if we look at the distribution per product area for the construction industry, we see that street and land use stands for 34% of the turnover, but the share falls to 23% in the order stock. And this is explained by the decreasing housing construction. In that segment, there is a lot of infrastructure that is connected to housing development projects. And when that market falls, we also get an effect here. But we also see that the compensation for roads and other infrastructure is 29% of the turnover, while the share of the revenue has gone up to 37%. And then we have a maintenance activity that is 25% of the revenue, which is quite normal for this time of year. And then we move on to the business industry. And there we have, as you all know, a very clear season pattern, where the first quarter is regulated by a very low business, a big undercut when the investment season stops. And it starts in the second quarter and then the business starts. The net turnover for the second quarter decreased by 12%, up to 5.3 billion. And that decrease is primarily related to the investment business, especially in Norway. Rörels resultatet uppgick till 333 miljoner och vi landade då på en marginal på 6,2% som är upp från 5,6. Det är merparten av produktområdena som vi ser den här marginalökningen i kvartalet. Jag tycker att vi har hanterat frågorna kring energi och bränslekostnader och så vidare på ett bra sätt i år. Vi har hanterat det i prissättningen till våra kunder och genom att anpassa oss och aktivisera oss i verksamheten. The distribution of product units here, I can note that almost exactly half of our business within the industry is retail business, and it is a conjecture independent business that exists there, and it feels good to have in these times. Order entry, somewhat lower for the quarter, we landed at 3.2 billion with 3.6, and the decrease here is mainly related to the Norwegian retail business. where we have been much more selective in our sales process than we were last year. And we go out of the quarter with an order stock of 6.1 billion SEK for industrial operations. If we look at the withdrawal of capital, we have a falling trend. Sysat Capital increases to 11.9 billion SEK, and this increase is explained by the fact that we continue to invest in certain machines, and in production facilities, in construction systems, where we will invest money to get a more effective business in the future. It binds capital. And then it is also the case that in the second quarter we always bind a lot of oil capital. We see that the withdrawal falls to 6.4% compared to 9.6% a year ago. And it is mainly the lower results in the supply since the war crime in combination with the increase in the last quarter of capital that makes the withdrawal fall. There will be double effects. Det sista försmålet, projektutveckling. Här ser vi en omsättning som går ner med 20 procent. Vi landade på 1,6 miljarder i kvartalet. Det är ju helt relaterat till den avstannande bostadsmarknaden som vi ser. Vi får också en effekt naturligtvis på vår resultatgenerering. Här ser vi att resultatet är följt till 114 miljoner. Vi får också en effekt på vår marginal. Bostadsutvecklingsmarginalen för det här kvartalet landade på 5,7 procent, vilket är ner från 11.9% in the corresponding quarter last year. I have already mentioned a few times that we have a housing market that is stagnant, and that is the whole Nordic region. This is due to the fact that we have had rising interest rates and interest rates at a high level. We have spent many years with zero interest rates and low interest rates and have quite quickly reached a completely new interest rate level. But inflation also affects the household economy and a general financial insecurity. And that means that we sell fewer housing. I mentioned it earlier, there are other marketplaces there. But when we go out and launch new projects and sell projects that will be moved in maybe two years, it is much more difficult. We have sold 87 housing rights and responsibilities during Q2. And it is a project that has come quite far in its production phase that we sell in. 87% is a low figure. If we compare with the same quarter last year, we sold 445. Selling new projects is difficult, and of course it also reduces the conditions for us to start new, self-developed real estate projects. We actually did not start any real estate projects during the quarter last year, compared to 528 properties last year. However, we have chosen to continue investing. by starting rental rights in our own balance sheet. We started 185 of them in the quarter. And then we'll see what the future market conditions say, whether this will eventually become a rental rights project or if it will become a real estate rights project, and we'll look at that. We sold a total of 206 homes during the quarter compared to 445. We started at 185 compared to 828. If we look at the total production, we have almost 4,700 households in production. Of these, 3,400 are housing rights and 1,300 are rental rights projects. So here we see the effect of investing here during a number of months in rental rights. Last June, 62% of our houses in production were sold. and the proportion of sold or rented housing rights was 67%. The resale rate has increased. We now have 266 apartments in the Ege Malansräkning and most of them are in Finland. In terms of real estate development, we have had a fairly low activity. We have three ongoing projects, one in Malmö, one in Jönköping and one in Gothenburg. The project in Malmö is finished right now, but we have not sold it yet. And here we see a similar development in terms of the capital that we saw in the industry. We bind more capital here. And we do this because we simply bind capital in the unsold apartments that we have in production. We bind capital in the rental projects that we build our own book. And that, in combination with the fact that we have a falling result, of course, means that we get a falling discount on the last part of the capital. And that was the last picture of all the business areas, so I'll hand it over to you, Niklas, so we can look at the share numbers.

Thank you very much. Then we'll move on to looking at the PR group. The net revenue of the company decreased by 7% during the second quarter and went up to 15.8 billion versus 16.9 billion in 2022. If we exclude the effect of Moll & Scandinavia, then the turnover result went up to 690 million compared to 885 million in the quarter of 2022. The turnover margin went up to 4.4 percent compared to 5.2 percent. Including Moldova and Scandinavia, we had a turnover of 1.9 billion and thus a turnover margin of 6.9 percent. If we look at the rolling 12-month turnover, we are now at approximately 62 billion and with a rörelsemarginal på 3,8 % exkluderat Målhus Scandinavia. Vi fortsätter att ha en god spridning i Norden. Andelen av omsättningen som är i Sverige är 70 %. Finland är 15 %, Norge är något mindre med 13 %. I Danmark, där vi endast har beläggningsverksamheten, så utgör det två procent av koncernens omsättning. Vi har en stor och också växande andel offentliga kunder. Vi har ju framför allt inom anläggning och industri där beläggning är ett stort område, en stor andel av stat och kommun som kunder. Men som vi hörde här tidigare så även inom bygg så har vi against public customers, where many of the orders that we have put in are actually against public customers. The proportion is 46% for public customers and 54% for private customers. And this distribution makes us, of course, less conjecture sensitive. För koncernen som helhet så har vi en god spridning i orderingången sen det första halvåret 2023. Den minskar jämfört med föregående år. Vi hade en orderingång på 23,5 miljarder att jämföra med 29,7 föregående år. Minskningen är till väldigt stor del relaterad till affärsområdeprojektutveckling. Orderstoken har minskat något och uppgått till 43,6 miljarder. Ett år tillbaka låg den på knappt 50 miljarder. Vi ser att vi fortfarande har en hög andel av våra projekt som är under 500 miljoner i ordervärde. 79 procent av projekten är sådana. Det är också så att vi har en diversifierad orderbok. And this gives a good risk spread. If we look at the distribution over time when it comes to order stocks, 56% of order stocks are expected to be produced in the current fiscal year. This is quite normally distributed based on the current year. nästkommande år och därefter. Vi ser att vi generellt sett ligger något lägre vad gäller orderstocken för varje period. Kassaflödet före finansiering uppgick till minus 2,3 miljarder. Som vi hörde här innan så binder vi mer rörelsekapital i projektutveckling och industri. Vi har fortsatt att göra strategiska investeringar i våra kapitaltunga verksamheter. Bland annat så när vi kör bostadsprojekt i egen bok, alltså hyresrättsprojekt och andra, så räcker det kapitalbindningen. Vi gör dessutom investeringar inom industri där Den största strategiska investeringen är den inom byggsystem med våra prefabanlinjer. Kassaflödet så är detta normalt säsongsmönster. Kvartal 1 och kvartal 2, det är normalt sett negativa kassaflöden i de kvartalen och sedan säsongsmässigt så har man positiva kassaflöden i kvartal 3 och 4. En väldigt stor an explanation for this is the season of layoffs that occurs in quarter two to four, and there is still no business in quarter one. The net debt, it went up to 11.7 billion at the half-year shift compared to 6.3 billion at the corresponding time last year. In net debt, project financing for the unsold part of the self-developed housing projects is included. Here it went up to 2.9 billion, one year back, which was the corresponding figure of 1.7 billion. The increased net debt is explained above all by increased capital integration in unsold housing in ongoing production. We have more re-purchased finished housing, and we have made investments in our own balance sheet. In addition, we have paid a share of almost 1.2 billion SEK. The net debt rate is now rising to 0.8. It is outside our financial goal interval of 0.3 to 0.7. It is a goal that is set for a normal economy, And as I said, we are now avoiding something on the upper side. In this context, we can also mention that we under the quarter refinanced the company. We now have a new basic financing for the next three years with a two-year option, ranging from 7.4 billion with four banks. Vi har, som ni känner till, ett antal finansiella och icke-finansiella mål. Ett antal av dem redovisar vi och stämmer av här nu vid halvårsskiftet. Vi kommer att börja med de finansiella målen. Vi har ett mål att vi ska ha en rörelsemarginal, återigen i normalkonjunktur och över tid. som ska överstiga 6 %. Där vi just nu är inte normal konjunktur, så här har det sett ut under ett tag nu. Nu ligger vi på 3,8 % rörelsemarginal om vi exuderar effekten av skandinavia, en underliggande rörelsemarginal. Skulle vi inkludera den så ligger vi på 4,5 %. Vårt andra finansiella mål är en netterskuldsättningsgrad där vi har målintervallet 0,3 till 0,7. Nu har vi en netterskuldsättningsgrad på 0,8 vilket innebär att vi då är utanför målintervallet. Som sagt, det här är inget konstigt i nuvarande konjunkturläge men naturligtvis så ser vi vårt mål 0,3 till 0,7 som relevant och I work to get back into it. Then I leave it over to Jesper again.