Peab AB (publ)

Hello and welcome to today's presentation of PEAB's nine-month report and report after the third quarter of 2025. My name is Johan Hartman and I am the CEO of PEAB. Next to me are Jesper Göransson, PEAB's CEO and CEO and Niklas Wingqvist, PEAB's CFO. As usual, Jesper and Niklas will present today's report. After that, you have the opportunity to ask questions. You can either do that manually with your phones, by pressing square five. Or you can write the question on the website, and I'll read them out later. But I'll return to the instructions. With those short words, we dive into the presentation of today's report. Welcome, Jesper.

Thank you very much, Johan. It's as good as we get started. Welcome everyone to today's presentation of our nine-month report for 2025. I was going to start by talking about the market, then we'll talk about the business areas, and then Niklas will go through the concern figures. We are starting to look at housing investments in the Nordic countries. The assessment is that housing investments will continue to increase for 2026. This applies to all countries, even if we see a certain decline in Sweden. We estimate that the growth will come, but it will be from low levels. If we look at Sweden, we see this with low levels. It has been quite a dramatic fall since the top year of 2021. We have basically halved the housing volumes in Sweden. It seems that we have established ourselves on a new level, around 30,000 new homes per year in Sweden. That is, on an essentially lower level than we were used to. Vi tror fortsatt att den här tillväxten kommer att ske men det kommer att ta relativt sett långsamt. Det har vi sagt under egentligen samtlut av de här åren och hittills har det visat sig vara så. Det är ett antal faktorer som behöver spridas rätt för att det här ska bli några större uppgångar. Från utgångspunkten helt enkelt att vi anpassar oss till marknaden där den finns och företrädesvis så är det i storstadsområdena och där startar vi projekt i en hyfsat bra takt tycker jag. Vi har anpassat oss väldigt bra i hela Peab utifrån den här situationen och det är tack vare den bredden som vi har i vår verksamhet som vi kommer tillbaka till här i presentationen. And then we slide into the rest of the local construction, which is also expected to be strong in all three countries for 2026. There is a fairly large variation here, where traditional offices and commercial buildings are generally weaker, but the public sector continues to keep up with the investment levels in all three countries. And then it's about All from schools, care and care facilities, and not least increased efforts to police, criminal justice, security and defence related projects. So it's a big market here and it's very wide. And in all countries, the markets are expected to rise by 2026, as I said. In terms of construction investments, we have high levels for 2026 and we have had that for many years. The construction markets have been high, stable and growing for a long time and are expected to continue. In Sweden, Norway and Finland, the development is expected to be a little more side-by-side during 2026, but also at high levels. There are increased investments in the transport network, both on land and to rivers, which are the main drivers of growth. If we look back in Sweden, Trafikverket has come up with its proposal for a national plan for transport infrastructure. And that's in the period between 2026 and 2037. And then we're talking about 1,200 billion that will be invested and spent on the infrastructure in Sweden. And it's not least the big entertainment investments that are important for us as well. The reasoned markets are also expected to benefit from increased investments in security and defence related projects. And then we have energy related projects that also exist. So it's a stable and growing market here. And then we can sum up the market images and here we see that we expect the total markets to have increased investments in both Sweden, Norway and Finland. Det var marknaden det och då går vi in och tittar på våra affärsområden, hur de har presterat här under det sista kvartalet. Vi börjar med bygg. Byggverksamheten ser vi en svag tillväxt här nu i detta kvartalet, ökade till 5,2 miljarder i omsättning. And we have the result with us and we have increased the margin. The result is up to 116 million and we increase the margin to 2.2% and it is up from 1.9%. The order situation is stable. The order entry went up to 4 billion compared to 4.5 and the order stock is higher and is now at a bit over 26 billion. We have had the opportunity to build Hitachi's new investment in Västerås, a new office and development center for 1.1 billion. We have had the confidence to build a nursing home in Helsingborg. We are going to build a home in Kalmar and a school in Nynäshamn. And a little on the same theme here, here we see the distribution within business units per product area and the share of housing is down by 24% in net turnover. Now we see a small increase in the order stocks, we are at 29%. This situation was completely different for four or five years ago, we were talking about 50% that was housing related here. So here I think we have made a shift and followed the market in a very excellent way, I think myself. And it's not that many years ago that we had this picture, so before the big rise on the housing side, we were at about a quarter of the housing production in construction. Vi ser att vi växer inom andra segment där efterfrågan är god. Det är allt från industrilokaler, skolor, vård- och omsorgsinrättningar. Vi har kontor som uppgår till 14 procent ungefär i orderboken. Det är ombyggnad av styrkvarteret i Stockholm. Sen har vi LKABs nya kontor i Kiruna som drar upp. Annars är kontorsmarknaden ganska avvaktande. Vi hoppar vidare till anläggningsverksamheten. En växande verksamhet här och här har vi en ökning i omsättningen med hela 11% till 4,2 miljarder. Även här får vi med oss resultatet där vi ökar marginalen. Resultatet uppbyggt 169 miljoner, det är en ökning från 117 och vi får en rätt stor marginaluppgång från 3,1 till 4,0%. Slår vi ihop bygg och anläggning till det vi kallar för entreprenadverksamheterna så uppbyggt den sammanlagda marginalen i kvartalet till 3,3% och det är upp från 2,7. We have an order entry that was higher in the third quarter compared to the corresponding quarter last year. An increase of 4.4 billion SEK and we have an order stock of almost 21 billion SEK. Also here a little update from the quarter's order entry. We had the confidence to build new headquarters up in Härjedalen. Vi ska bygga lokalnätstjänster, utföra lokalnätstjänster. Det är ett femårigt ramavtal, totalt en bit över 1,1 miljard. Sen har vi ett tvåårigt ramavtal på drift och underhåll som är 660 miljoner. Likadant här kan vi bara snäll lite grann i produktområdena. Vi har en bra spridning mellan olika produktområden. Gator- och markarbeten, 35 % av omsättningen. Andelen i orderstocken är 21 och det har jag förklarat tidigare och det är fortfarande samma. Det är det minskade bostadsbyggandet som driver ner den andelen då. Sen så ser vi vägar och infrastruktur som är 27 procent av omsättningen och hela 37 av orderstocken. Och här ligger ju ett antal både medelstora och väldigt stora projekt i det. Bland annat Boden flygplats och E20 utanför Mariestad. Och sen har vi väg- och järnvägsuppdrag i Boden. And it's both large and medium-sized projects that are growing over several years. So we have seen a significant increase in that product. And then we have operations and maintenance, which is quite constant here, 17% in 2020 in Årlestock. We also have the energy side, as we see, 5% in the turnover and then an increase to 9% in Årlestock. We move on to the next area, PEB. As I said before, it is a broad business. We also have our entire industry sector and it is large. Here we see a slightly reduced turnover of 8%, 7 billion SEK in the quarter. The decrease is attributable to Finland, which in the previous quarter had higher volumes. They received quite large extra contributions from the Finnish state, which affected Positive24, and we have not had that this year. Then we have a decrease in the application business in Norway, where we have carried out an overview during the year. av verksamheten för att vi tyckte att det var för dålig intjäning. Den är nu klar. Så fallande omsättning med ett ökande resultat. Resultatet uppgick till 875 miljoner. Det är en ökning från 1848. I relation till omsättningen här så får vi en rätt så kraftig marginaluppgång. Marginalen för kvartalet uppgick till hela 12,6 %. Bakom här har vi två delar. Svea and asphalt, which are construction work and gravel and mountain concrete. Those parts go strong. Then we have a building system that is housing focused. We have cranes, rental and prefab. It goes weaker. But in total, a strong margin of 12.6 percent. Ordering once expanded to 2.4 million. to 3.2 last year, and the order volume is almost 5 billion. And here we can see roughly how this is divided. We have since a while ago a large exposure to the construction industry, and we have a total of 52% of the industry's turnover from the construction industry. Stable, good market, and we are a leading actor throughout Nordic. And of course, if we increase the profitability and at the same time maintain the capital build-up, which we have done, then the cost of capital is increased. And we see here that the capital build-up has risen to about 10 billion, and that in combination with the development of the results means that we end up with a total of 14.7% in the cost of capital, and that is an increase of 11.9%. The last business area, which is now one of the smaller ones, is project development. Here we see an turnover per quarter that has risen to just under 900 million. and we have a result that increases from minus 60 to 36, a margin of 4%. And here you can see that behind this is housing development, and it is essentially lower than before. We have a strong negative result, while we, through real estate development, derive positive results. Here we do running businesses, although not very big during this quarter, but it continues. And if we look at the housing production, starting with production starts, we had 111 starts during this quarter. All of these 111 are conversions from housing that we have started earlier in our own balance sheet. And this is simply a trend that we have seen over time, that when we have produced and started these budgets and they have come a bit in time, the opportunities to sell increase. And before we reach certain sales levels, we convert those projects into traditional housing rights projects. That's what happens here with these 111s. In addition to these conversions, we started this quarter with no new projects. And it is clear that in this market, where there are relatively few projects, the gap between quarters is much larger than it used to be. We continue our strategy as we have mentioned before. We have adapted to where the market exists. And we take advantage of our balance sheet and given our financial capabilities and start projects when we think there are opportunities to do so. Sales pace, we sold 301. housing during the quarter and here we have owned for quite a long time now. And it's the same trend as before, as soon as the project is close to completion, we see that it becomes easier to sell. And so it has been during this quarter. We now have about 2,000 homes in production. 1,200 traditional housing rights, 270 rental rights projects, 494 apartments that we have then started own balance accounts that will then be converted. 42% of this whole was sold at the quarter change. Re-purchase. We have repurchased apartments for 543 units. A small decline from 572. And the rental rights that are left here, there were 306 when we went in and now we are down to 196. And they will either be sold or converted to rental rights. If we go into the property development part, as I mentioned before, we have an activity here. Right now we have three ongoing projects. A little bigger in Malmö, Värdstaden in Malmö, with a total investment of almost 600 million. It will be finished at the end of 2027. And then we have two slightly smaller projects, Handelsytor och förskola. And both of them will be finished at the end of 2026. And then we have four permanent administrative facilities in Malmö and one in Gothenburg. Here we see a capital bond that is on a fairly stable level. Relatively unchanged since quite a long time ago. The content, however, looks a little different. Today, this consists of building rights, but to an increased proportion now, projects that we build in our own book. A higher proportion of unsold apartments and so on, since the market is looking at something that I have explained earlier. In relation to profitability, of course, we do not get a good discount here. It is increased from 1.7, but is at a low 3.6. And that summarizes our business goals. And then I think it's time for Niklas to go through the concern figures. So here you go.

Thank you very much. Yes, then we will look at the P&A group as a whole and the turnover in the quarter went up to 15.6 billion. It is largely the same level as the quarter last year. However, we have increased the result significantly from 995 million to 1148 million in this quarter, which gives us 1% increased turnover margin from 6.4% to 7.4%. Vi rullar på en omsättning på 58,2 miljarder med en rörelsemarginal på 5%. Det ska vi ha med oss där att mot slutet av 2024 så genomförde vi en transaktion där vi gjorde ganska mycket avslutavseende centurinnehavet, vårt joint venture där, som gav ett resultat på 400 miljoner. Så det har ju då påverkat den rörelsemarginalen. Here we have a map of the countries where we are active. It looks a lot like before, with the main business in Sweden consisting of about 70%, quite evenly distributed in Norway and Finland, and then we have our asphalt business in Denmark. When we look at the distribution between public and private customers, it has changed over the past few years. Now we are at 56% of public customers and 44% of private customers. If we go back one year, or even more, this was the reverse of the situation. The part where we have a large number of public customers is also what It contributes to an increased stability in the concern and makes us less conjecture sensitive. And what has affected is of course when the housing side has gone down at the same time as public housing, investment in facilities and increased investments in accommodation have increased. This has made these figures have shifted to be more public. Som vi sa tidigare, vi har en hög orderstock, den har fortsatt en god riskspridning. Vi har en orderingång som på de nio månaderna ligger på 40 miljarder, nere från 44,5 föregående år. Men då vet vi också att då tog vi in ett antal stora projekt inom affärsområdeanläggning som kommer att löpa under ett flertal år, som nu ligger kvar i orderstocken. There we can see that the order volume is at 48.3 billion, which is 1.3 billion more than what it was a year ago. If we look into the project portfolio, it looks like before, despite the fact that we have taken Ett flertal större projekt så är det ändå som så att merparten av projekten är med ett kontraktsvärde understigande 500 miljoner. 71% av projekten är så. Det här bidrar naturligtvis då till en diversifiering och en bra riskspridning. Over time, we see the current fiscal year, the fourth quarter, that we still have to produce. We are on the same level as we were in 2024, in the last quarter. We have just over 11 billion SEK. However, when we look at the coming year, in 2026, So compared to one year ago, we now have two billion more in order stocks that we know will be executed during the coming fiscal year. And then we have 12.5 billion in order stocks that are in the year 2027 and thereafter. This means that in total we have 77% of our order stocks from the coming year onwards. In addition to these contracted order stocks, we have what we call phase 1, i.e. these projects in the earlier stages that we are counting with will become a coming order stock, usually within a two-year period. They now go up to SEK 17 billion. To compare with when we entered in 2025, that figure was SEK 13 billion. So despite the fact that we have We had a strong cash flow in the third quarter. 2.8 billion. This is the cash flow before financing. 1 billion SEK according to the regulation that took place when we raised the goal of Scandinavia. But also in addition to that billion, we have a strong cash flow of another 1.8 billion SEK. This is driven very much by improved movement capital. Vi har haft normal investeringsnivå i det här kvartalet. Den stora förbättringen har varit rörelsekapitalförbättringen i egentligen samtliga affärsområden. Det starka kassaflödet bidrar till att nettoskulden går ner. Vi har nu en nettoskuld på 8 miljarder. One year back, the net debt was 8.4 billion SEK. Of those 8 billion SEK, 1.8 billion SEK is in production that has not yet been sold. And where we stand, the risk, and thus included it in our segment's net debt. Judging by the goal schedule, we will present the goals that we follow up from the third quarter. Let's start with the financial goals. As you know, we have a financial goal of a 6% turnover margin. Right now, we are rolling at a 5% turnover margin. That includes 400 million SEK according to the deal we made at the end of the previous year, which gave 400 million SEK. But we have a stable and positive trend on the moving margin a few years back, but it is still a bit from the goal. We should also bear in mind that there is no contribution from housing development i vårt resultat och ändå kan vi upprätthålla den här typen av marginal. Vårt andra finansiella mål som vi följer upp efter tredje kvartalet är nettoskuldsättningsgraden som ska ligga inom intervallet 03 till 07 och vi ligger mitt i det intervallet nu. Nettoskulden på 8 miljarder gör att vi har en nettoskuldsättningsgrad på 0,5 så att vi är inom det finansiella målet. Då ska vi följa upp några av de icke-finansiella målen och lämna över till Jesper igen.