Peab AB (publ)

My name is Johan Hartoma and I am the CEO of PAAB. With me are Jesper Göransson, PIAB's CEO and CEO, and Niklas Winqvist, PIAB's CFO. We will let Jesper start by presenting today's report, and then we will let Niklas finish. No, Jesper will finish. If you want to ask questions after the session, you can either do it manually, and then you press square five on your mobile devices, and then we'll let you know. Alternatively, if you want to write in a question, you can do it via the web form, and then I'll read up the question later. So, with those words, we'll hand it over to Jesper.

Welcome. Thank you very much, and once again welcome to the first quarter of 2025. The first quarter is always a relatively small business quarter, as we know, with a low season for many businesses. But before we get into that, let's look at the market outlook. We start with housing investments. And just like before, we believe in a continued recovery of the housing markets in all of our three countries by 2025. But that's from low levels. We'll get back to that a little bit soon. We may also see that the recovery is taking place in a somewhat slower pace than we previously thought due to the insecurity that now exists in the environment. On the other hand, falling market rates may help us in the other direction. So we'll have to wait and see. But we believe in upgrades, at least for 2025. This picture also talks about the previous quarter, and we see this dramatic fall as it was since the top year 2021, where we were up to almost 70,000 starters per year in Sweden, and we have dropped to a bit under 30,000 now, 2023 and 2024, on the rise since 2025 points to something over 30,000. So it's basically halved levels from the tops then. We think we see a stabilization. These lower interest rates have of course contributed to that. It is difficult to say where this is going and at what pace. The big concern is still that the construction costs have increased as much as they have done after the inflation impulses that came. And in combination with the fact that prices on the housing market have fallen, which makes it difficult to get up the calculations. Bedömningen ligger någonstans mellan 30 000 Swedbank-prognoser i starten per år och 52 300, vilket då är bokverkets prognoser. Vi står fast på vår tidigare bedömning att vi tror att marknaden har bottnat ur, men vi tror att återhämtningen kommer att ta sin tid. Behovet finns där, men vi får ta ett kvartal i taget. If we look at the level of investment for local construction, it is in a positive way for 2025. However, there are variations between segments, where we have office and commercial buildings that are weaker, while we have the public sector that invests quite heavily in all three countries. And then it is mainly about education, care, law enforcement, defense, but also some parts of the industry continue to invest as well, of course. If we look at the construction side, the investments for 2025 are expected to be at higher levels in all three countries. There are a number of different sectors that contribute, such as the development of electricity networks, increased investments in roads and railways, but also a lot of investments in ports and railways that drive growth. If we summarize this to a whole on the total markets, we expect increased investments in both Sweden, Norway and Finland. It's actually the same type of prognosis that we left off a quarter ago, so it's an unchanged market view. Then we look at the business areas and as I mentioned earlier, it is a slightly smaller quarter in terms of business. We can start with construction. Here we see that the revenue is falling. We had a revenue of 5.3 billion SEK in the quarter compared to 5.8 billion SEK. It is an 8% decrease and it is mainly explained by the fact that we have a lower activity in new production and housing. We have managed to switch from housing production to other types of production in a good way, but of course we have not been able to fully compensate for that stage. The turnover increased and increased to 111 million, which means that we get a turnover margin that went from 1.7 percent to 2.1 percent. We have had a high turnover during the quarter, 8.8 billion compared to 6.7. This is a large number of public orders that have come in. We have an order stock that is increasing and is now close to 27 billion in construction. It's time to pick up projects during the quarter. We are going to build the trade university in Gothenburg, a new bus depot in Malmö, a central kitchen in Banda and a new school and health center in Karachok. A little bit back to the distribution of the products. I talked earlier about housing that has fallen. And the share in the revenue at Välerbystad is now down by 26%. And here we were open when it was the highest at a bit over 50%. So it's a big drop that has been made there. And then it has been filled with the other pieces. I mentioned earlier public orderers, school, health care, bathrooms, sports facilities, security-class buildings of different types. Vi har ombyggnad av Sturekvarteret i Stockholm som ligger bland kontor och vi har LKABs nya kontor i Kiruna som också har kommit in. Då hoppar vi till anläggning. And here we see a business that had growth in the same quarter as last year, 3% up, 3.7 billion. Public investments in the form of various investments, infrastructure, climate change, we have a good spread in geographies. and various product areas in Sweden and Norway. The result increases to 114 million compared to 1977, and this also means that we get a margin that ranges from 2.2 to 3.1 percent. If we add up construction and construction to what we call entrepreneurship, then the margin for entrepreneurship in the northern quarter is 2.5 percent, which is an increase from 1.9 percent. Within the facility, we have a stable order entry. We have a lower order entry than what we had in the previous quarter in April. But in the previous quarter in April, we had a number of very large projects that came in. So we see here on the two high stacks, Q1 and Q2 of 2024 were extraordinary. And if we take away the view of them and look at the remaining stacks, I think these 4.8, 4.9 billion in this quarter is a good level. Per den siste mars uppgick Årlstoken till 21,1 miljarder, vilket är upp från 18,6. Några projekt från första kvartalet på anläggning, ett nytt kraftvärmeverk i Örtofta, en ny E22-anslutning utanför Lund och en fortsatt ombyggnation av ett avloppsredningsverk i Stockholm. A little comparison of product types here. We have a good distribution between different product areas. Street and land work stands for 35% of the turnover, while the share price is 27%, so it continues to decrease. This is explained by the decreased housing construction. On the other hand, we have infrastructure where we have 29% of the turnover, while the segment stands for the largest share price, 36% of the share price. Behind that increase are these large, long projects, for example Boda Airfield and E20 outside Mariestad. And as I just mentioned, it is also a project that has been in production for several years. Drift and entertainment is 18% of turnover and 19% of turnover. Then we take the business industry. It is the business industry that is most affected by winter weather and the season. If we look and compare the quarter, Q1 to Q2, the turnover decreased by 5% to 2.3 billion. And it is the construction system and hiring that is decreasing. And it is in turn related to the lower housing construction. Resultatet uppgick till minus 549, en liten försämring jämfört med föregående första kvartal. Det är ett djupare säsongsmönster inom beläggning eftersom den verksamheten har vuxit och sedan har vi en svagare lönsamhet inom byggsystem och kramverksamheten. Men det är ett litet kvartal sammanfattningsvis. The order entry was slightly higher than the previous quarter. It landed at 3.8 billion, against 2.9 billion. And this is mainly related to the lease contract in Sweden and Finland, which the increase in the order entry is in. We have an order stake of 7.4 billion, which is up from 6.2 billion. Here we see that the leasing business is now up by 54%. And what we have talked about before, the leasing business is a conjecture-independent business and we are the leading actor in Norden, so we are happy for that. If we look at final capital in industry, we have had a number of quarters where the final capital goes down. We are now at 9.7 billion compared to 10.8. Vi binder mindre rörskapital och vi har haft en lägre investeringstakt under de senaste kvartalen. I takt med att vi har förbättrat lönsamheten så ökar avkastningen på sysselsatt kapital och den är uppbyggd till 13% jämfört med 8,2% för ett år sedan. Sist affärsområdet, projektutveckling. Där har vi en omsättning som minskar något till 990 miljoner jämfört med 1055. Ett resultat som går ner till 83 jämfört med 246. I jämförelsessiffran hade vi ett REA-resultat från försäljning av JV-andelar i ett bolag som heter Tornet som renderade 220 miljoner i REA-resultat. The turnover level is characterized by the lower production rates in housing production. If we look at production rates, we started with 336 housing rights and properties. Bland annat startade vi två projekt uppe i Stockholmsregionen. Ett i Nacka, Kvarnholmen, och ett i Rosunda, Solna. Det är projekt som vi har startat på traditionella premisser med förhandsförsäljning. Det visar på att det går att starta projekt i vissa unika områden. Vi har också startat 187 bostäder i egen balansräkning. And among other things, we have started a project in Gothenburg, which we do as a combination business when we build an external location and rental rights. The idea with these homes and their own balance account is that when the project comes further, it will be able to be converted to housing rights. And we also see that during this quarter, we had 40 people who converted from old, started projects in the balance account to to BRF and there we also see that due to the fact that the project is completed, it is easier to sell and then we can take these projects from the self-balance account out in Bostads Rättsföreningar. Then we also get the result effects. Until then, it is in the self-balance account to zero calculation. The sales are going on at an even pace. It's a lower level than we've been before, but still even. We sold 226 apartments compared to 166 in the 20th quarter. And apartments from our own balance sheet that became 46. So a total of 272 versus 305. Of 305, 139 rents were sold as well. Jag tycker att vi har en väl dimensionerad byggrättsportfölj och vi har sagt innan attraktiva lägen i Norden och i avvaktning på att marknaden nu stabiliserar sig eller vänder uppåt så arbetar vi med att vidareutveckla och förbereda projekt för start och i vissa fall så kommer vi starta egen balansräkning i den mån vår kapitalbindning tillåter det och i andra fall så kommer vi starta i bostadsrättsform. Det underliggande behovet av bostäder tycker vi då finns där i samtliga tre länder. Vi har totalt 1910 bostäder i produktion av 1207 bostadsrätter och ägarlägenheter och där är 43% sålt. Och sen så har vi 623 bostäder som är i egen balansräkning där då endast 9% är sålt. Totalt är 35% av de 1910 sålda. The completed and repurchased housing is on 678. Out of the 678, 306 are completed rental rights and they should either be converted to housing rights or they should be sold as rental rights to external holders. 372 are traditional housing rights or properties, so it is on a manageable level, we think. If we look at the property development portfolio, we have a ongoing project in Malmö. It is a project with trade, office and parking, with a total of almost SEK 600 million. The project has a 43% growth rate and it will be completed by Q3 2027. It came in together with several of the completed properties from Centur, when we shared the company with Balder. In addition to those in Malmö, we have an office in Gothenburg that is up to 40%. And if we look at the capital invested here, we have planned out, we are at 18.4 billion in capital invested in project development. But due to the fact that we have lower income from, especially housing development, we have a low return on that amount of capital. And it is up to 3.4% compared to 2.8%. That was the business goals. Niklas, can you take us through the concerns?

Yes, thank you very much. Then we will go through the PV concern as a whole since the first quarter. And if we look at the revenue, it decreased marginally, from 11.1 billion SEK to 10.9 billion SEK, so a few percent decline. We had a turnover in the first quarter of minus 278 million SEK. Som nämnts tidigare så är det naturligtvis då påverkat av säsong där det är normalt sett att framförallt industri påverkar och därmed att vi har ett negativt börsresultat i första kvartalet. I jämförelseperioden hade vi ett börsresultat på minus 106 miljoner men det var också så att under det första kvartalet 24 så gjorde vi den här försäljningen av trådligt bostadsproduktion som påverkade positivt The geographic distribution looks a lot like before, that we have the clearly dominant Omsättningen i Sverige med 71 procent. Vi har ökat något i Finland, ligger där på 16 procent av koncernens omsättning. Och sen oförändrat i de andra två länderna, Norge och Danmark. Vi har jämfört med föregående år en ökad andel offentliga kunder. If we look back one year, this was a pretty exact 50-50 distribution. Now we have increased with public customers up to 56% of our turnover and private customers to 44%. And of course, it is the different market developments that do this, where we have a construction market and a market in construction and other public housing. som har ökat och har goda marknadsutsikter och bostäder då som successivt har minskat, som har förstärkt den här fördelningen. Vi hade en relativt sett hög orderingång i första kvartalet, 16,6 miljarder. Föregående år hade vi i och för sig 17,9 miljarder, men som ni såg tidigare här i presentationen så hade vi då exceptionellt hög orderingång i det specifika kvartalet inom affärsområdeanläggning. When the high order intake for a while now has made that the order block has been strengthened. We have an order block today at 52 billion. If we go back one year, it was at just under 48 billion. So we have an order block that has increased by 4 billion in one year. The share of a project under 500 million in that order block is 73%. It shows that we have a good spread on the project. We have a good risk spread and a good portfolio of our order stack. If we look at the order stack distributed over time, it is still the case that we extend our order stack somewhat. 47% of our total order stock will be executed in 2026 or later. But we also see from the current fiscal year that we now have 27.8 billion in order. In the corresponding period last year, we had 25.9 billion in order. So we have strengthened the order stock both in the current year and in the coming years. A few years ago, we also talked about our pre-contracts, which is phase 1, where we work together with an orderer to jointly produce a project that will later become a conventional contract and order. The potential value of those pre-contracts rose when we closed the first quarter to 16 billion, an increase from 13 billion at the turn of the year. Kassaflödet, som alltid, är påverkat av säsongen. Normalt sett, som ni vet, våra säsongsmässiga mönster för kassaflödet är som så att vi har negativa kassaflöden i första och andra kvartalet och motsvarande ska vi sedan ha positiva kassaflöden i tredje och fjärde kvartalet. Vi hade ett negativt kassaflöde om 363 miljoner. i första kvartalet i år, så ganska normal nivå. Vi har successivt fått en lägre nettoskuld. Även denna är precis som kassaflödet naturligtvis säsongspåverkad. Men vi hade en nettoskuld vid stängningen av Q1 på 8,3 miljarder. Att jämföra med ett år tillbaka på 9,1 miljarder. Nettoskulden har också påverkats av att I fjärde kvartalet 24 så sålde vi andelar eller delade upp andelar i centur och en del av det har vi då kunnat plocka ut som utdelning här under första kvartalet där vi har kvittat det mot en revers skuld vilket har dragit ner vår nettoskuld. I segments netto skulden så ingår den osålda delen av bostäder i pågående produktion. Den uppgår då till 1,9 miljarder. Går vi tillbaka ett år i tiden så uppgick den posten till 2,6 miljarder. Då går vi över till målavstämningen och vi ska stämma av två av de financial goals here after the first quarter. We have a total of nine financial and non-financial goals. We start with the moving margin, we now roll on a moving margin of 4.4%. There we have a goal of 6% moving margin. We have also been clear about Det är ett mål som bygger på att vi ska ha normala konjunkturförutsättningar- och också förutsättningar för samtliga av våra verksamheter- att finnas i en normal marknad. Där är vi inte idag, men vi levererar en rörelsemarginal på 4,4 %. Nettoskuddsättningsgraden, där har vi ett mål att vi ska hålla oss inom ett intervall om 0,3 till 0,7. Och när vi nu stänger första kvartalet, då ligger vi mitt i det intervallet med en nettoskuddsättningsgrad på 0,5. Då lämnar jag över till Jesper igen. Ja, tack så mycket.