Translated Figures for 2012 and 2013 According to the New Business Area Structure
As previously communicated Peab has implemented an extensive action plan aimed at raising profitability primarily through streamlining construction operations and gathering project development together under one roof.
Business Area Construction
Business Area Construction will comprise the contracting work that the Business Area does for both external and internal customers, primarily Business Area Project Development.
Business Area Project Development
Peab is incorporating all housing developments into the former Business Area Property Development, now called Project Development. In other words, the Business Area will comprise all Peab’s development regarding housing and property, including the capital employed connected to project development.
Reporting according to the new business area structure
Up to the third quarter 2013 net sales and operating result were reported with own housing developments as part of Business Area Construction. Net sales and profit were reported according to the percentage of completion method for both the general contractor part and the subcontractor part. Net sales and profit referring to the construction of our own tenancy project developments on our balance sheets were reported in Business Area Construction according to the percentage of completion method but were eliminated in consolidated reporting. When own tenancy project developments were divested the eliminated net sales and profit were returned to consolidated reporting.
As of the fourth quarter 2013 the following changes have been made regarding reporting net sales and profit from our own housing and tenancy project developments:
- Net sales and profit referring to the subcontractor part of our own housing and tenancy project developments are reported, according to the percentage of completion method, in Business Area Construction.
- Both the general contractor part and the subcontractor part of our own housing developments are reported in Business Area Project Development. Reported profit is the result in the general contractor part reported according to the percentage of completion method. Regarding our own tenancy project developments on our balance sheets only capital gains from divestitures will be reported.
- Internal net sales between Business Area Construction and Business Area Project Development regarding the construction cost of own housing developments are eliminated in consolidated reporting. Net sales and profit referring to the subcontractor part of own tenancy project developments in own balance sheets are eliminated in consolidated reporting and returned when a project is divested.
Capital employed
As of the fourth quarter Peab will report closing capital employed for Business Areas Project Development and Industry. The capital employed for the Business Areas consists of the Business Area’s total capital reduced by deferred tax receivables and internal receivables from the internal bank Peab Finans with deductions for non-interest-bearing liabilities and deferred tax liabilities.
Orders received and order backlog
Orders received and order backlog have been reallocated according to the new business area structure.
Enclosed are the translated figures for net sales, operating results and operating margins for the quarters in 2012 and 2013. Capital employed and orders received are reported in translated figures for the entire year of 2012 and the quarters in 2013.
Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 10:00 a.m. on 4 February 2014.
For further information, please contact:
Niclas Winkvist, CFO Peab +46 431 89109
Gösta Sjöström, CIO Peab +46 733 371010
Peab is the Nordic Community Builder with some 14,000 employees and about SEK 45 billion in net sales. 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.