Peab repeats its nine external targets during its Capital Market Day in Stockholm today where President and CEO Jesper Göransson and the rest of Peab’s executive management present an update of the business’ current situation and strategic focus going forward. Based on the ongoing so-called phase 1 projects in construction contract operations, Peab is also communicating potential orders for a total of SEK 19 billion over the next two years.
Peab is a community builder that through its four collaborating business areas and local presence can be found all over the Nordic region. This business model creates unique opportunities to, with our own resources and control over the entire value chain, meet customers’ needs as well as external expectations. Although recent years have been characterized by a turbulent world which has, among other things, entailed a drastic decline in housing markets Peab believes the nine external targets adopted in 2021 continue to be relevant.
There are nine targets in all, both financial and non-financial. They are categorized under the four strategic targets: Most satisfied customers in the industry, Most profitable company in the industry, Best workplace in the industry and Leader in social responsibility in the industry. These nine targets are spotlighted by Peab externally and part of our internal targets and action plans.
Peab’s nine external targets:
Most profitable company in the industry:
- Operating margin > 6 %
- Net debt/equity ratio 0.3 – 0.7
- Dividends > 50 % of profit for the year
Most satisfied customers in the industry:
- CSI > 75
Best workplace in the industry:
- eNPS > Industry benchmark
- Serious accidents: Zero vision serious accidents through contracting accident trend
Leader in social responsibility:
- Carbon dioxide intensity, own production: 60 % reduction by 2030
- Carbon dioxide intensity, input goods and purchased services: 50 % reduction by 2030
- Equal opportunity recruitment: Share of recruited women will always exceed the education market
In connection with Peab’s Capital Market Day executive management will describe the prerequisites for Peab to achieve its operating margin target of six percent. In summary these are a favorable market for our entire business, that all operations reach their benchmarks and that the capital intense operations Project Development and Industry represent at least 40 percent of Group net sales.
“We have the capacity to achieve all our targets, both financial and sustainable. Peab’s business model with four business areas and local roots has served us well in good and hard times alike and it provides us with the basis to continue to develop the company and create value for shareholders, customers and society in general,” says Jesper Göransson, President and CEO of Peab.
Executive management will also explain the growing phenomena of planning contracts, so-called phase 1 contracts, in business areas Construction and Civil Engineering. The planning contracts sign Peab on to, together with the customer, mapping out an optimized product with the right quality as well as handling risks and uncertainties. The intention is that under the planning contract period a final construction contract will be signed. The order is reported first when there is a final construction contract. Currently the potential value of the final construction contracts stemming from planning contracts is around SEK 19 billion over the next two years.
Jesper Göransson and the rest of Peab’s executive management present Peab’s business and strategy, including a review of the repeated targets, at the Capital Market Day in Stockholm today, Tuesday February 13, 2024 at 1:00 p.m. To participate go to: https://peab.se/om-peab/bolagsinformation/investerare/kapitalmarknadsdag/.
For further information, please contact:
Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45
