Peab AB (publ)

Welcome to today's presentation of PEAB's final communiqué for 2024. My name is Johan Hartman and I am the CEO of PEAB. As usual, I am standing next to Jesper Göransson, PEAB's CEO, and Niclas Winkvist, PEAB's CFO. Jesper and Niclas started the day by presenting today's report. and there you have the opportunity to ask questions and you can do that both manually if you are in the telephone conference and then you press square five on your mobile units or you screen the question in the web form on the website and then read the questions later. That was a short intro, we'll start over.

Welcome Jesper. Thank you very much Johan. Welcome everyone. We will go through our quarter's results and our year's results for 2024. We will start by taking a look at the results for March. And in general, one can say that there have been small changes in the market views since last year. It was supposed to . . . Thank you very much. And if we look at Sweden, And then I'll show you this picture. The number of start-ups in Sweden between 1994 until and with the fall of 2023. And then there's the second year. from 2024 to 2033.

And if we look at how this development has been, we can say that after the financial crisis of 2008, due to the fact that the interest rates fell and due to the fact that the interest rates became very, very low for a long time, we had a fairly significant increase in housing construction in Sweden. and we reached the top level in 2021, with almost 70,000 startups that year. At the same time, we see the result of inflation and the rapidly rising interest rates thereafter, with a big break in the start-up, where we fell to levels just below 30,000, almost 25,000 startups per year.

What we see here now is that we see a clear trend. It is clear that the lower interest rates today will lead to the stock market stabilizing. Dels påverkade våra projektkostnader i form av lägre räntelastning under projektets uppbyggnadsfas. Men framförallt påverkade kundernas köpkraft och förtroende för att investera pengar. Thank you. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... även om det då är svårt att säga exakt hur efterfrågan kommer tillvägen i det medelånade perspektivet. Vi vet också om att det kommer till olika utmärken i olika geografier med förmodligen en tung punkt mot efterfrågan i stort sett i Malmö, Göteborg. and Stockholm's regions. So this is a short summary of what we believe about the future of the food industry. That is, it has a good nature, a flat nature,

But it will take some time before we return to these high levels again. If we look at above-ground construction, it was a mixed picture during 2024. Growth in Sweden, decline in Norway, and growth in Finland. If we look at 2025, the piles will either be sideways or upwards in Norway. So it feels like we will have a stable demand for upper house building, and the public sector continues to be there and keep up the investment levels in all three countries. Finally, on the market, the facility. High, stable levels of investment, increasing 24% increased in Sweden, increased in Norway. Finland, no. We have no business in Finland for our part.

If we look forward to 2025, an increase in investment levels in Sweden and still high investment levels in Norway. Let's sum it up. In these different segments, if you look at the total market for 2025, there are small revisions compared to what we reported in the previous quarter. A little up in Norway and a little up in Sweden. That was the market picture. Let's have a look at the business model. ... ... ... ... ... ... ... ... ... fall from 27.8 billion in revenue down to 23.8 billion. This is the effect of the falling housing prices that we have talked about in the previous quarter, and also ... ... ... ... ... ... ... ... ... ... Resultatet 96 miljoner i kvartalet, 416 för året och det blir uppgiftat jämfört med 41 miljoner som är redovisade för 2023. Marginalen ... ... ... ... ... Den var relativt sett hög under fjärdningen från 2000-talet. Den ökade, uppbyggde 6,3 miljarder jämfört med 5,8. Det gör att vi har en orderstock för byggverksamheten som ligger på...

23.2 billion, which has gone down compared to the previous year's shift, which was at 24.5. But not a lot lower. And as mentioned before, we have had a fairly broad order, even so in the fourth quarter. We have received LKAB's new office in Kiruna for 459 million. En ny skola i Orisehamn för 255 miljoner. Vi ska bygga åt försvarsindustrin i Jyväskylä i Finland för 11 miljoner euro. Och vi har fått in ett renoveringsprojekt av bostäder i Tromsö i Norge på 141 miljoner norska. Om vi fortsätter lite grann på temat variation så ser vi att

Bostäder nu har hamnat på nivå från att omsättning på 27% och vi ligger nu på 29% i år. Här var vi uppe på över 50% när det var som högst. ... ... ... ... Then we also see that the order entry has rolled on. Many other types of building projects that we have included in the order book, for example schools, ward projects, bathrooms, ... ... ... ... ... ... And then we have the re-building of the construction site. Thank you very much. We see a good spread between geography and ... ... ... ... ... ...

It means that if we sum up the turnover marginals for entrepreneurial businesses, that is to say the number of buildings and businesses, we end up with 2.1% and that is compared to minus 1.6% in 2014. Here we see a stable order entry, just over 3 billion, we had for quarter 4. And the order stock is high, it is almost 20 billion, up from 14. And there are a number of larger projects, a little longer projects also, that have come in, so we have extended the order stock, which feels good. A good variation, I mentioned earlier, for projects. You can't believe it if you look at this picture, because here it is. En gemensam faktor är vatten.

Men det är olika typer av projekt kopplat till vatten. Dels så ska vi... ...stärka VEA-nätet i Eskilstuna för 335 miljoner. Vi ska också bygga ett nyt vattenverk i Trollhättan på fem månader. Sen ska vi dra av nya ledningar på tekniskt vatten. Upp i borden på 276 miljoner. Som sagt, vatten är gemensamt nämnda, men det är lite olika typer av projekt. . . . . . ... ... ... . . . ... ... ... ... ... Thank you.

5.6 billion compared to 5.1 billion. And for the whole year, we were up to 21.5 billion SEK in revenue. A result that goes hand in hand. We ended the year with 1.4 billion SEK. And the quarter, almost 600 million SEK, was a strong quarter. Above all, it is the construction companies that have done well. And above all, it is Finland, where we have had a high revenue. And a good marginal development.

And that is also, to a certain extent, a result of the state action for the roads that came before. ... ... ... ... and we have landed. ... ... ... ... ... Thank you. ... ... ... ... Eh, men släpper man ihop industrivärksamheterna till den helhet som tyder på att marginalen betyg på 7% för kvartalet känns väldigt trevlig. And then we have the last picture of the year. There we also have quite a number of years in the last quarter. ... ... And here we see the distribution between the different product areas within the industry.

And as we have mentioned earlier, the retail business is a large business for PEA. And in relation to the business industry, the retail is 53%. Konjunktur är beroende, och vi är den ledande aktören i Norden på beläggning. Vi ser också att kombinationen av att vi har haft en lite lägre investeringsnivå, vi har jobbat med rörelsekapitalet, vilket gör att vi får ner vår kapitalbindning, och det i kombination med att vi nu stärker vår lönsamhet.

That means that we get a pretty strong uptick in revenue at the end of the year. That capital. And it lands all year round at 13.3 percent. And that's an uptick from 8.6 percent last year. Thank you very much. Here we see a lower turnover for the whole year, 4.3 billion, or at least 5.7, but we see an increase in the quarter. Thank you. If you look back at the numbers, you can see that there is a negative response rate. Thank you. . . . . an effect of actually two transactions. First and foremost, we have a share in the 200-person production during the beginning of 2020. Thank you very much.

And that gave us a total of 620 million results, which is more than 20-24 years of results. There are no yearly recurring transactions, of course, but I think it clearly shows our ability to build value in real estate development over time. Sometimes it's our own balance sheet, and sometimes it's together with partners in joint ventures. If we then look back at the housing that I talked about initially, we think that the market looks to have stabilized. And while starting a project is a difficult balance, there is always a distinction between what conditions we have to reach reasonable margins,

Under fjärde kvartal startar vi 370 börsen. But out of the 307, 167 will be converted from the first project, which we previously started with our own balance calculation, which has now been converted to the first project. There, I think I clearly showed the trend that we also have. ... ... ... ... ... ... So we will continue to work with the strategy to make it possible to start projects in your own business that are rented. ... ... ... ... ... ... ... ... ... ... ... Thank you very much. ... ... ... ... ... ... ... ... ...

We sold 267 houses during the last quarter. We are constantly seeing small improvements in the construction market. The fact that the interest rates have gone down to lower levels gives an effect. But what needs to be done is to get, as I mentioned before, stable construction costs and that we also get increased prices on the commercial market. Avslutningsvis kring det här, jag tycker att Peab har en väldimensionerad byggrettsportfölj. De finns i attraktiva lägen i Norden.

Och i takt med att när marknaden stabiliseras och ändå uppstår, så ska vi se till att vi jobbar vidare och vidareutvecklar för övriga projekt. We have 1,550 production. . . . Thank you very much. ... ... ... ... ... ... ... ... ... ... ... ... ... Fastest Utveckling, där har vi ett antal... Vi avvittrar en logistikfastighet under fjärde kvartalet i Södertälje.

Vi färdigställde också en kontorsfastighet i Göteborg. Sen har vi förvärvat fyra nya förvaltningsfastigheter. De kom in genom den här transaktionen som vi gjorde när vi delade upp fastighetsarbetet. Det är fyra fastigheter som ligger på Varvstaden nere i Malmö. Väldigt bra läge. Där ingick också ett utvecklingsprojekt som är på 11 000 kvadratmeter uthyrningsbart. Det är ett projekt som ska bli handel, kontor och parkering och som ska färdigställas i Q3 2027. Här ser vi en kapitalbindning som har gått upp till 19,8 miljarder.

Det är framförallt den utgivna centrum. Thank you. capital uh ... ... ... ... ... ...from 2.2. And that was all. and I would like to ask you to agree with me. Yes, as I said, we are looking at the PR company as a whole. And... From 15.6 billion to 16.6 billion. ... ... ... 2024 compared to 2023. But with a very clear pattern. The first half of the year had a negative growth. And then

In the last two quarters, we have been growing again, and thus we closed the whole year's turnover at the same level as in 2023. We had a turnover in the quarter of 1,255,000,000, which gives a turnover margin of 7.5%. Naturally, as we have heard earlier, affected by a result from the transaction of Centur, which contributed with 400 million, but also a strong conclusion, especially in the business area industry.

The results . . . . ... ... ... ... ... ... Thank you. And then... ... ... ... ... ... ... ... ... ... ... ... ... Vi har också redovisat fördelning mellan privata och offentliga kunder här under en tid. Vi har också pratat om att vi ser en styrka i att vi har We have a distribution that is around 50-50, where we know that the cake that is against the public customers is somewhat more stable.

It's a development that we've had during this year, and we've had a somewhat falling turnover in buildings, and also a lower... Aktivitet inom bostadsutvecklingen, samtidigt som vi har växt inom anläggning och beläggning inom industri, gör ju att vi nu har en större andel mot offentliga kunder, 56 procent mot 44 privata kunder. Vi har en hög orderstock, fortsatt med en god riskspridning. Order entry for 2024 landed at 56.5 billion, which is approximately 11 billion euros compared to 2023.

We are closed. ... ... ... ... ... ... ... ... ...project... ...project... ...project... ...project... And that the proportion of the larger projects has increased in our region. ... ... ... ... ... ... Thank you. ... ... ... ... ... ... That we have We had a strong cash flow in the quarter, 1.7 billion.

We had a strong cash flow in the quarter, 1.7 billion. Vi ser också att vi har haft ett utifrån säsong starkt kassaflöde under hela 2024. Vi hade avsevärt mindre negativa kassaflöden under de första två kvartalen och har sedan haft starka kassaflöden såväl tredje som fjärde kvartalet.

Så skillnaden mellan 24 och 23 är nästan 4 miljarder i kassaflöden om man jämför helt. Den starka utvecklingen på kassaflödet har ju påverkat nettoskulden. Thank you. um um ... ... ... ... ... joint venture. ... ... ... ... Thank you very much. In 2025, we will take out an extension from... ...centers to roughly one billion, which will reduce net debt.

In net debt, there is... projektfinansieringen för den osålda delen av våra egenutvecklade bostadsprojekt och den uppgår då till 2,2 miljarder. Målavstämningen då för helåret 2024 och då kommer jag att ta de finansiella målen. Vi har nine external goals as a whole. And as I said, I will start with the financial ones.

We have a goal of seeing the growth margin, that we should have a growth margin ... ... ... ... ... ... under 2024. där vi då stänger året på en röstmarginal uppgången till 4,4 %. Nettoskuldsättningsgraden. Vi har ett mål att vi ska ligga inom ett målinförfall på 0,3 till 0. Och vi stänger alltså... ...bokslutet 2024, där vi då ligger mitt i... ...målintervallet med... ...nål komma. Thank you. The policy is that we will share 50% of this year's net profit.

... ... ... ... ... and it will be divided into two cases, with 1.50 here directly under the vote, and another 1.25 after the third quarter in October. The allocation proposal corresponds to 38% of our results, which is somewhat below the goal we have. Men det ses som ett väl avlägt förslag utifrån vår finansiella position, marknadsutveckling.

Också så ska vi se detta i sammanhang med vårt målavseende nästa år. Thank you. Thank you very much. 75 and when we measured this for 2024 it was 78. . . . . . . And what is highlighted in these different answers is... ...personals who have very high values. They can be very important. ... ... ... ... ... ... So here it is, the target level and the demand. Then we have the best workplace and we measure that The goal is to always be above the industry's benchmark.

And if we look at the industry's benchmark, we see a decline here under 2024, down to 2017, while last year EMPs went up. from 2007 to 2008 compared to the last measurement. So we have an increase despite a challenging environment, which we think feels good. What stands out here is the E&PS value for working women, which came up with a total of nine points after this year's measurement.

And when you look at the answers here, we see that the employees raise Samarbete med kollegor, gemenskapen, vår företag... ...som några av de absolut främsta styrkorna med att arbeta här på er. Så även här klarade vi våra mål. Ett annat sätt att mäta bästa arbetsplatsen är genom att mäta arbetsplatslyckor. Och här har vi naturligtvis So 0.7, what does that mean? The goal is that it will always fall to 3. When we get into 2024, or rather, När vi gick ur och stängde 2023 så låg talet runt omkring 48. Och när vi stängde 2024 så hade vi haft en kraftig nedgång till 33. Vilket jag tycker är väldigt, väldigt bra. ... ... ... Thank you very much. ... ... ... ... ... ... ... ... ... Så även här så når vi upp till våra mål.

Så när vi leder inom samhällsansvar, och det möter vi bland annat genom att Fokusera på att få ner vårt koldioxidavtryck. 2045 ska vi vara klimatneutrala. Vi har satt delmål till 2030. Och vad gäller det som kallas för skog 1 och 2, det vill säga den egna verksamhetens koldioxidavtryck, så ska vi ta ner den med 60% till 2030 utifrån basåret 2015. Och när vi stänger 2024 så ligger vi på minus 50. Så här är vi på god väg att komma ner mot vår målsättning. Framförallt kommer minskningen ifrån att vi har ställt om stora delar av vår asfaltstillverkning till icke-fossila bränslen.

Det visar i sin tur på att har vi själv koll på vår produktion, så är det viktigt att vi har koll på vår produktion. ... ... ... ... ... ... ... ... With that, we can look at what will happen in the future. 50% from the base year 2015. If we close in 2025... ...4, then the figure landed at minus 12%. So we have a very high trend. Men det är en bra bit kvar till 50%. Det här visar ju också på svårigheten att hantera det som ligger utskott. ... ... Vi ska påverka då och vi har ju planer och vi har vårt klimatplan framme så att vi har aktiva dialoger med um um ... ... ...

Vi mäter också jämställd rekrytering under det här målområdet. Och då mäter vi att när vi rekryterar så ska andelen kvinnor alltid överstiga utbildningsmarknaden. Och vi delar upp det i två. Vi delar upp det i produktionsledning och produktionsstöd, alltså tjänstemän då, relevanta utbildningar, där utbildningsmarknaden tillför ungefär 30 procent kvinnor. Och vår rekrytering under 2024 landade på 39% kvinnor där. Så där var vi över målet.

Vad gäller motsvarande befolkningar för produktion av frälingar till yrkesarbetare så tillverkar marknaden sex. And we are down to 10.6%. So even there we are down. ... ... ... ... ... ... ... ... ... I also raise the goal that in the fall of 2025, we will recruit more than 8% from that category. Så här på något sätt var det också... ...träff på våra mål, eller överträffande mål, egentligen. Thank you very much. There we have seen a good high demand. We have also had a weak business market. Thank you. har sett ett förbättrat resultat och en stark marginal.

Väldigt viktigt är att vi också ser ett väsentligen starkare kassaflöde, både i kvartalen men också på hela år 2024. Vi har en god måluppfyllelse och jag vill återigen trycka på det här med den fallande olyckstrenden som är viktig för oss. Jätteglad och stolt är jag för vår breda affärsmodell. Våra fyra affärsområden och den lokala förankringen som vi har tjänar oss väldigt bra i den här typen av marknad som har varit. Och med den bakgrunden så tycker jag att styrelsens förslag kring en utdelning där vi höjer utdelningen från 1,50 till 2,75 känns bra. Och att vi delar upp den på två utbetalningstillfällen tycker jag känns bra utifrån ett utbildningsperspektiv inom bolaget.

I think you got the most out of it, I think. ... ... ... ... ... ... ... ... ... ... ... ... ... Thank you very much. ... ... ... ... ... ... ... ... The next question comes from Kayvon Chervenpour from SCB. Please go ahead.

Thank you and good morning. I have some questions. I can start maybe with industry here. The profitability was very strong, both in Q4 and for the whole year. How do you see 2025? Should we assume that this is some kind of reasonable base level to start from? Or do you see another upside to the profitability?

No, but we don't leave any prognoses in that way. I would like to take a reasoning about how the outfall for 2024 ends. As I mentioned before, There are parts that are going very strong, especially Finland, which in turn drew great benefit from this annual extra investment that came.

It was an annual extra investment and it's nothing you can... Thank you very much. And it's... I'm talking about the building elements, and I'm talking about the crane. And as you can see, ... ... ... ... ... ... So I think you should look at... ...how the measurements have been distributed... ...and how you can measure the number of people... Yes, thank you. And then I also wonder about the project development. The housing development has had losses of five quarters in a row. In the following report, you have received a part from Centur. My first question is about how you see the volume of the development in Q4. Yes, but... Det här är ju en balansgång naturligtvis. Vi har en bostadsutveckling.

Det är en fabrik i sig, om man säger så, med en omkostnadsmassa som ligger där. And we want to maintain a good structure in the company due to a long-term need for housing, which there is. So we have a huge amount of money at the bottom that we are going to handle. Then we have a reality, and it is a market, but the demand, and we have talked about it before, I think it has gone away. The big question forward, now we have the interest rates, and I think we can stop talking about interest rates, because now we have low interest rates. I hope they don't go up then, and that's probably what's going to happen.

But if the interest rates both exist at this level, then I think the interest rates are... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...starting. We will follow the market... ... ... ... ... ... But in those cases, when we start our own book, we also get the possibility to price set the project a little later. Hopefully the price will rise. Men vi får inte ut något resultat på vägen utan det kommer först... ...av de projekt som ska konverteras. Det är... Det är inte helt enkelt att ge någon tydlig indikation på resultatet. Thank you.

Yeah. Svälja några av de här, eller kommer de att ligga kvar här i böckerna?

Långsiktigt ska vi ju inte äga färdigutvecklade fastigheter. Utan det här är ju, nu har vi liksom i princip, vi har ju nyligen gjort transaktionen, och är jätteglada att vi har gjort den, och att vi har fått in hela paketet runt varvstaden i ett jättefint utvecklingsområde, som då delvis har färdigutvecklade fastigheter.

Sen får vi ta det därifrån, But instead of a hotel, we're not going to own it. Thank you. I have just a few questions. But I can also just ask when it comes to investments. Do you have any kind of indication on investment volumes for this year? Can you take it, Niklas? So... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... We are well invested. Which means that we are on a lower investment level without damaging anything of our business.

The normal thing for us over time is to have an investment level that is at a level with our deductions within the business industry. Then it will be characterized by where the market takes the road. We have more stable businesses such as our storage business, Sverok and others. While small businesses and rental in general will be completely dominated by Vad blir det för ett behov i marknaden?

Men långsiktigt har vi en... Det är en nivå med avskräckningar. Ett bra... ... ... ... ... ... ... ... We can state that we have stable margins. We can start to understrike. Both within the building and the facility. Thank you. Thank you. . . . . . . . And we also see the effects of it on the market. Not daily, but almost weekly at least. ... ... ... ... ... ... ... ... ... ... In the long term, I would like to see the margins go up, but the market is not really there.

Then, on the investment side, we have seen a shift in our order book, where we have left some smaller projects and have gone into a number of very large, long projects. And of course, when you start up those projects, which has happened in the later part of the year, Yeah, and then just one last thing.

It's just a little bit of technicality.

And it's this extension of the century that's going to reduce the debt by about a billion. And as I understand it, is it a quick Yeah. Yeah. Yes, that's right. ... ... ... ... ... ... ... ... ... ... ... Det kommer att konverteras till en utdelning och därmed bli eget kapital. Det är av att nätoskulden och den tekniska med ungefär Thank you. Inge likviditetseffekt, nej. Likviditet i koncernen är en procent alls.

Jättebra, det var mina frågor. Tack så mycket.

Bra, tack för det Kevan. Då kör vi, vi ser att tiden går här. Vi kör vidare med nästa frågeställare.

The next question comes from Albin Sandberg from Kepler.

Please go ahead.

Thank you. ... ... ... ... ... ... ... Thank you very much. Thank you very much. Thank you very much. Thank you very much. Thank you very much.

We need 600 million from these JV-transactions.

There are no yearly recurring transactions, but there will be.

And it's clear that you can reason about how to react when you decide on a distribution level. And the other thing is that we need the company, as I mentioned before, We need to be involved in the real estate market and see what we can do. We need to bind a little more money in the real estate market. It's a general resolution about the value of capital in the company that landed in this, which I think balances the judgment.