Segment reporting in four business areas as well as translated comparable figures for 2011
As we have previously communicated, in order to create a platform for continued growth as well as develop our offer, rationalize our organization and clarify governance, Peab has of 1 January 2012 divided operations into four independent business areas; Construction, Civil Engineering, Industry and Property Development. The domestic market for all four business areas is the Nordic region.
Group operations revolving around acquisitions, development and divestiture of commercial property and rental property in the Nordic region are now run in the new business area Property Development. This business is followed up in three areas; listed holdings, associated companies and joint ventures and wholly owned subsidiaries and projects. Listed holdings consist of shares in Brinova and Catena. Associated companies and joint ventures consists of, for instance, Peab’s ownership in Tornet (ownership of apartments for rent), in Centur (ownership and development of commercial property), in companies connected to the development of Arenastaden as well as other holdings. Wholly owned subsidiaries and projects consists of a number of holdings that include everything from land for development where zoning is being worked out to completed projects ready for sale.
An allocation of the Group’s various assets for housing development and property development has been made. Assets for housing development are still part of business area Construction while assets for property development have been moved to business area Property Development. Group profit/loss for 2011 has been translated based on this allocation.
Up until 31 December 2011 net sales and operating profit from property development (management of wholly owned property, shares in profits from associated companies and capital gains from the divestiture of completed property and shares in associated companies) were reported as part of business area Construction. Net sales and profit referring to the construction of our own project developments were eliminated in business area Construction. When our own project developments were divested these effects were returned, and the capital gains were recognized as income in business area Construction.
As of 1 January 2012 net sales and profit from property development (management of wholly owned property, shares in profits from associated companies and capital gains from the divestiture of completed property and shares in associated companies) are reported in business area Property Development. Net sales and profit referring to the construction of our own project developments is presented in segment reporting according to the percentage of completion method in business area Construction. Net sales and profit are eliminated from this production on Group level. When our own project developments are divested these effects are returned to Group level. Capital gains from sales are reported in business area Property Development.
Enclosed are the translated figures for net sales, operating profit and operating margins for 2011.
For further information, please contact:
Jesper Göransson, CFO Peab +46 733 371013
Gösta Sjöström, Communication Peab +46 733 371010
Peab is the Nordic Community Builder with 15,000 employees and a net sale exceeding SEK 40 billion. The Group’s subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on NASDAQ OMX Stockholm. The registered office of the Group is at Förslöv, Skåne in south of Sweden.