Revised targets for Peab
Through the strategic two transactions - the acquisition in paving and mineral aggregates and the dividend of the previously wholly owned subsidiary Annehem Fastigheter - Peab has more clearly become a community builder that, through four collaborating business areas and local presence, is active throughout the Nordic region. Our business model provides us with unique opportunities to, with our own resources and control over the entire value chain, meet our customers’ needs and the expectations of the world around us.
In order to further promote value creation Peab has adopted revised targets; everything from our mission, business concept and strategic target areas to internal and external financial and non-financial targets. As of 2021 Peab will externally report the performance of the business by monitoring nine targets, of which three are financial.
The financial targets are:
Operating margin > 6 %
Net debt/equity ratio 0.3 – 0.7
Dividend > 50 % of profit for the year
Until the end of 2020 Peab had three external financial goals
Return on equity will be a minimum of 20 percent
The return on equity amounted to 23.1 percent (17.9) in 2020. Return on equity has been close to the goal of 20 percent in recent years due to higher earnings in operations.
Equity/assets ratio will be a minimum of 25 percent
In recent years the equity/assets ratio has been better than the goal and in 2020 it amounted to 36.2 percent (32.5).
Dividends will be a minimum of 50 percent of profit after tax
In February 2021, Peab’s Board proposed an ordinary dividend of SEK 4.50 per share, which corresponded to 67 percent of profit for the year. In December 2020, Peab distributed Annehem Fastigheter to the shareholders. As a result of the spread of the coronavirus and its effects on external circumstances and financial markets Peab’s Board decided to withdraw the proposals for the ordinary dividend for the financial year 2019. For 2018 the dividend amounted to SEK 4.20 per share, which corresponded to 59 percent of profit for the year.
Years 2011-2018 are not translated according to the changed accounting principles.