Peab AB (publ)

Hello and welcome to today's presentation of PEAB's book Slutskommuniqué and the report after the fourth quarter. My name is Johan Hartman, I am the IAF chief at PEAB and next to me is Jesper Göransson, PEAB's board of directors and CEO. and Niklas Winkvist, the CFO. As usual, Jesper and Niklas will present today's report, which we published a little while ago. Then you have the opportunity to ask questions. You can either do it manually, by pressing the square button on your mobile phone, or you can write any questions directly on the website. I'll read them out later. So, let's get started. Jesper, please.

Thank you, David. Once again, welcome to this presentation and communication for 2025. We'll start by looking at the market forecasts and look at housing investments. We can see that we've had ups and downs here in 2025, and also in 2026. This indicates that we have a certain boost for Sweden. There is growth from low levels, and we can see that in this picture that we have talked about earlier. I think it is quite important to bear in mind. It is Sweden's proposed housing, but it looks quite similar in terms of trends in Norway and Finland. And here we see how dramatic the decline was after the top year of 2021. It was down to under 30,000 states. And we have been there for several years now. I think I see a stabilization on the business market during 2025. We are in the hands of around 30,000 startups per year. In the years ahead, I'm looking at increases based on the low level. This will probably continue to take time. We have said that from the beginning. It has taken a few years now. Det kan säkert ta ett tag till innan vi är tillbaka till de här lite högre nivåerna som vi hade innan. Men det viktiga är att vi konstaterar att vi har hamnat i en instabiliserad situation. Det har mycket att göra med att We have lower interest rates now, we have future easing of housing loan rules, we have had stabilized prices on the foreign market, which is all about a stabilized market. Then we have a large increase on the foreign market and we have an insecurity in general that can lead to the other direction. A stabilized development in any case. If we look further at the rest of the local construction, that is, all construction without housing, we see that we have rising trends for 2026 in all countries. The public sector continues to keep up with the investment levels in all three countries. As we have talked about before, it is schools, healthcare, healthcare, police, criminal justice, security and defence related projects. And we also see a good demand among different types of industrial buildings. The facility has been at a higher level for many years, and here we see that there are still conditions for increases or stable developments in all countries. And here we see increases in transport networks, both on land and to the sea, as major drivers of growth. Vi har ju stora viserade satsningar från länderna i Sverige som pratar om 1200 miljarder under perioden 2026-2037 som både innehåller satsningar på ny infrastruktur men också väldigt mycket på underhåll av befintlig infrastruktur. Så här finns liksom en motor bakom. Sen har vi ju det här allmänt osäkra läget med säkerhetssituationen som gör att det kommer finnas satsningar som är dedikerade även till försvarsindustrin eller försvaret helt enkelt inom anläggningssidan. Slår vi ihop det här till den totala byggmarknaden, bygg- och anläggningsmarknaden i orden så ser vi att Pilarna förväntas gå upp under 2026 i samtliga tre länder. Stabila marknadsutsikter. Då tittar vi lite grann på prestationen per affärsmodell. Vi börjar med bygg. Där ser vi ändå ett kvartal med tillväxt. Vi hade tillväxt även under det tredje kvartalet och fortsatt under det fjärde kvartalet. Vi kombinerade det med ett ökat resultat och en ökad marginal. Så vi landade på 2,1 procent för kvartalet i byggmarginal och började närma oss 24 miljarder på årsbasis i omsättning i bygg och en bit över en halv miljard i resultat på 2,2 procent. The order entry continues at a stable level. Before Q4, we landed at almost 6 billion. And we are on an order stock that is higher now than it was in the corresponding period earlier this year. We have an order stock of 25.1 billion. And here we see a chart of projects that have come in during the quarter. bland annat ett häkte i Skövde, vi har en skola i Solna, vi har nya bostäder i Malmö och så har vi ett nytt äldreboende i Falun. And this is another way of looking at it, when we look at the distribution per product area. We see that housing has stabilized around 24-25%. We were earlier at more than 50% of the turnover. We can also see an increase in housing when we look at the order stock, which is 31%. Other types of products, also a good distribution, I think. We see increases, as I mentioned before, in everything from industrial premises to schools, care and care facilities, and more. So it is a diversified transition and order-making and construction. Anläggning avslutade också starkt. Vi hade en omsättningsökning med 7 %. 5,3 miljarder omsatte vi i kvartalet. Vi fick med oss resultatet. 217 miljoner landade vi på, vilket innebar att marginalen också ökade till 4,1 %. Vi stänger hela året på anläggningssidan på en omsättning på 17,6 miljarder. Vi landade på 4,0 % i marginal. If we add up the village and the facility to what we call the entrepreneurial business, the combined margin under the quarter is improved to 2.9%. This is an increase of 2.1%, so here we see clear improvements. The order entry in the quarter was high on the facility side. Vi fick en tilläggsbeställning, ett fortsättningsuppdrag av Trafikverket kopplat till Västlänken, Hagard, Roselund och Göteborg med 4 miljarder. Vilket innebär att vi fick en kanske lite extra hög orderingång just i kvartalet. Men vi har haft en hög och stabil orderingång under många kvartal och vi ser att vi har en orderstock som ligger på 22,2 miljarder. Några exempel på under sista kvartalet. Jag nämnde ju Haga Rosenlund, de fyra miljarderna kopplat till Västerlänken. Vi fick utbildning av ett vattenverk i Eskilstuna och sedan har vi två skjor som har lösts ut på drift och underhåll som är summerat till 240 miljoner. Här ser vi också den marknadsutveckling som är. Vi har It's what we call roads and other infrastructure, which is 35% in turnover and down to 17% in the stock market. It's a lot of construction projects that are smaller, often linked to housing projects and more. So it's a consequence of the fact that housing production is lower than before. But then we see the gray area, which is actually infrastructure. And there we have 27% in turnover and we have a whole 47% of the stock market, which is that type of project now. Här ligger allt ifrån medelstora projekt till väldigt stora projekt. Nämnda projekt i Göteborg ligger där, Haga Rösselund. Vi har Boden flygplats ligger där och E20 utanför Mariestad och så vidare. Så här är också stora och långa projekt som sträcker sig över lång tid. Driftunderhåll ligger på strax 120 procent, så det får man betrakta som ganska normalt. We move on to the business area industry. And there we see a decrease in turnover for the quarter. And that has to do with the accommodation business in Finland, where we have seen reduced salaries from Finnish authorities, simply lower volumes. And then we have made a change in terms of our accommodation business in Norway, which means that we have shrunk that business, which is what explains the loss of revenue. We look at the annual basis, which amounts to 20 billion SEK, and we are just under 1.5 billion SEK in turnover. We have chosen to specialize in the two parts, asphalt and construction systems, since there are different types of businesses. In general, we at PF have chosen a strategy that deviates from most other large construction companies. We have chosen to maintain large parts that are industrial-related, i.e. industrial goods and services, while Sann has chosen to outsource it. And here we have chosen to invest strategically for many years. So this is, as I said, 20 billion. And PF's turnover is almost 1.5 billion in turnover, so that's a lot. If we look at sewage and asphalt, we can see that Krusberg, a tech company, consists of concrete and asphalt production and asphalt expansion. Here is the big result, the big company. It is closely linked to the construction market. In the construction system we have rental companies with cranes and general equipment and machines for construction projects. And we have prefab and large constructions. And from there we see a much larger increase in housing markets. Here we also see that they have had a tough time during a number of years, thanks to the fact that the housing market has gone down. In total, we ended up with a movement margin of 7.4 percent. And when it comes to heavy asphalt parts, the heavy industry, we ended up with 8.6 percent, which is an increase from 6.9 percent. So this was also a strong, strong business to start with. The order volume goes up. 5.4 billion SEK. It is partly linked to investment, but also to the PayPal business. A bit over 50% of the industrial business is investment. It is a congenital, insensitive business. We are the absolute leading actor there. In industry, we bind a lot of capital. We have, however, managed to shrink the capital structure during the last few quarters. We landed at 9.2 billion, compared to 9.9 billion. We have made free movement capital and we have been a little more careful on the investment side than we have been maybe for a few years earlier. That in combination with the increase in the result means that we get a nice discount on the withdrawal. And the decarbonization of the last capital increased to just over 15% compared to 13% a year ago. The last business model is project development. It is a business model that has had a great success in recent years. We almost landed on an irreversible turnover during the last quarter. This means that we have a lower result. This is due to the fact that we made a larger transaction during the comparison before 2024 when we divided up the content in our JV in Centur, which generated a result of almost 400 million. So you should keep that figure in mind. It is also worth noting that we are on the housing development part, which has been a tough bit here. Again, we are above zero, so we landed just above zero. A zero-result against previous low-negative results in 2024. If we look at the activity level within housing development, we see that we started 358 units against 225, which means that we started 1,161 units throughout the year, compared to 470. And we see that the whole trend with selling We get an increase in sales thanks to the fact that we are approaching completion. It continues, which means that we build in our own book from time to time and convert when we get closer to the end phase of the project. And we see here that in this quarter, it is the type of project that has been converted into production data. But as we turn the numbers around, we see an increase here. And we also do that when it comes to sales. Vi sålde 344 enheter jämfört med 290. I det här kvartalet så var det något lägre på rena bostadsrätter men vi har sålt fler hyresrätter. Tittar vi på helårssiffrorna där så sålde vi 1031 enheter under 2024 och vi sålde 1248 under 2025. And if we look at the ongoing housing production in its own development, we are now in total at just over 2,000 units in production. And that is based on 1,572, so it is 25% up, almost 30% up. And we have the share sold constantly at 37%. Finished and repurchased is at a lower level. Vi hade 572 enheter i balansverkningen när vi stängde 2024 och vi är nu nere i 370 när vi stänger 2025. Det är på hyresrättssidan som vi har letat ut och sålt av lägenheter. There we have a number of ongoing projects. We have a larger project in Malmö, which will be completed by the end of 2027. And then we have two smaller projects, which will be completed by the end of 2026. And then we have four completed administrative facilities in Malmö. And then we have one completed facility in Gothenburg. We also bind a lot of capital here. Vi har legat på nivåer runt 20 miljarder. Nu är vi nere och stänger på 18,2. Vi har haft en nedgång. Men det är fortfarande sett till lönsamhet en tung kapitalbildning. Så här får vi en låg avkastning på 1,5 %. Men här är det viktigt att notera att vi har på viss håll en lägre kapitalbildning, även fast den fortfarande är på lite högre nivåer. Det är viktigt att kolla bakom. We do quite a lot when it comes to capital building within the business community, which you have to look at the numbers to see. We might have had a bit of a passive balance sheet before, a few years ago, with capital building in co-operative companies and so on. And there we have now taken out building rights from, for example, Centur, replaced the parts that were finished, which means that we have a higher building rights portfolio. And we use it and put it in the ongoing project. So we see an increase from 5.7 billion 2023 to 6.2 billion. And we continue with that. So we have a more active capital binding today. And with that, Niklas, from the capital binding to the company.

Yes, thank you very much. Let's talk about the company as a whole. We start as usual with the turnover, where we landed just over SEK 17 billion in the quarter. This means that we had an increase of 2% compared to 2024. Omsättningsutvecklingen och tillväxten har sett så ut att vi under första halvåret hade negativ tillväxt och sen under andra halvåret har vi varit tillbaka i tillväxt i koncernen och innebär också att vi stannar i stort sett på samma omsättning för helåret som vi hade 2024, det vill säga knappt 59 miljarder. Det är positivt. Vi har haft resultatet med oss. Det har förbättrats. Vi landade på knappt en miljard i kvartalet, som är en rörelsemarginal på 5,8 %. Och för helåret så landar vi på 2,6 miljarder, som också ger en bra rörelsemarginal på 4,5 %. Här ska man ha med sig, som nämnts tidigare, att när vi jämför med föregående år, som har ett något högre marginal, This includes this division that we did in Centur, which affected 400 million, which we naturally did not have then, corresponding to 2025. The map view looks roughly like it has looked at previous transitions. We have, of course, our majority of the turnover in Sweden, 73% of the turnover, then we have 14% in Finland, 10% in Norway, and then we have our investment business in Denmark, which accounts for 3% of the company's revenue. This division of revenue is also important to look at all the time. It is the distribution between public and private customers, and here we are roughly at the same level as we have done so far. 55% public and 45% private customers. We think it's good when we have a balance between public and private that is there in the range of 50-50. We have seen an increase steadily there and is high on the public customers. It is of course the development that we have had in the facility and especially in asphalt, which mainly has public customers, but also within we have seen a shift from previous years of housing to now more social functions such as defense, schools, police, etc. We have a high order volume with, as we can see, good risk distribution. We had an order volume in the quarter of 15 billion. For the whole year it meant almost 55 billion SEK, somewhat in the same level as in 2024. We have a high order stock when we go out of 2025, 48.5 billion SEK, which is approximately 3.5 billion SEK more than what we went out of 2024 with. And then we have 65% of these projects are under 500 million, more to suppress the diversification and risk spread in the order portfolio. The other part of looking at the order block, apart from the fact that it has increased, is to see that it has also extended its time and it has of course beror på de här, framförallt inom anläggningen där vi har tagit långa projekt som varar under flera år. Ett exempel där är naturligtvis Bodö flygplats som är ett flerårsprojekt. Det innebär då att vår orderstock förlängs i tid. Tittar vi på innevarande år så ser vi att även när vi nu går in i 2026 så har vi knapp 2 miljarder mer i orderstocker som vi ska arbeta av under detta år. Så vi har en bra position för att gå in i 2026 vad gäller orderstock. Kassaflödet har vi varit inne på tidigare. Vi hade ett starkt cash flow in the fourth quarter, and it followed a very strong cash flow even in the third quarter, so development there is holding up. We have had a positive and good cash flow in all business areas, but it is mainly in industry and project development that stands out now during the fourth quarter. We have had some plan-related developments in project development of completed projects that have been sold, which means that we have received cash flow. Then in all business areas, we have a positive development in operating capital, which is due to our discipline when it comes to everything from invoicing to payments and storage levels in Sweden and Aspen. The positive cash flow, of course, means that we get a lower net debt. We landed and closed the year on a net debt that goes up to 6.4 billion, down from 9.1 billion one year back. In this segment net of debt, there are then properties in production that have not yet been sold with 2.1 billion, one year back at 2.2 billion, so it is on a stable level. Then we go into the target setting. Vi kommer att gå igenom de olika finansiella och icke-finansiella externa målen som vi har. Jag börjar med rörelsemarginalen. Vi har sagt det. Den landade in på 4,5 % för hela året 2025. Vi har ju våra finansiella mål om 6 %, så vi ligger en bit därifrån. Men tittar vi på de underliggande verksamheterna så presterar de väl. Många av dem ligger på sina riktvärden. Däremot så har vi ju bostadsmarknaden som är på fortsatt en alldeles för låg nivå, vilket innebär att vår projektutvecklingsverksamhet inte har möjlighet att leverera på de här nivåerna. Men det åskådliggör bredden med våra affärsområden i koncernen, att vi kan leverera 4,5 % trots att bostadsmarknaden ser ut som den gör. Målet avseende nettoskuldsättningsgrad. Vi har ett mål att vi ska ligga inom 2003 till 2007. Vi ligger nu på 2004. Det innebär alltså att vi ligger i den nedre delen av intervallet. We see that we have a strong financial position and it gives the consumer a good space for action. Finally, after we have closed the year, we have our allocation goals. We have a policy that says that we will give an excess of 50% of the result after tax in allocation. Det förslag som kommer att komma upp på bolagsstämman är en utdelning om 33, uppdelad på två tillfällen. Ett tillfälle efter stämman på våren och ett tillfälle under hösten. 33 innebär en utdelningsprocent om 70 procent, vilket innebär att vi uppfyller det målet. Those were the three financial goals, so I'll hand over to Jesper again to continue with the other goals.