Capital Market Day: Peab develops further in becoming the Nordic community builder

• New business areas
• Specification of loan maturity
• Establishment of MTN program

Peab will today, Wednesday November 30 2011, arrange a Capital Market Day for investors, analysts and media at Valhall Park in Ängelholm. Jan Johansson, President and CEO as of May 2011, and Peab’s executive management will present Peab’s strategy in becoming the Nordic community builder. Below is a summary of information not previously made public:

New business area division – new program for property development
In order to create a platform for continued growth as well as develop our customer offer, rationalize our organization and clarify Management operations will be divided into four business areas; Construction, Civil Engineering, Industry and Property Development, as of 1 January 2012. Property development will go through certain listed and unlisted holdings, wholly owned companies and projects currently run in Business area Construction. The ambition is to be the Nordic leader in acquiring, enriching, managing and selling commercial property as well as housing property for rent. Reporting will mirror the new organization as of the first quarter 2012.

Specification of loan maturity
Peab’s goal is to a balance in the financing of our operations in terms of average maturity times and financing forms. The percent of gross loan debt which matures annually was per 30 September 2011 (taking into consideration the refinancing measures communicated on 2 November):
2011: 11 %
2012: 27 %
2013: 4 %
2014: 35 %
2015: 5 %
2016 and later: 18 %

Establishment of an MTN program
In order to further develop our financing Peab has decided to set up a medium term loan program, a so-called MTN program, with a loan framework of SEK 3 billion. The prospectus has been submitted to The Swedish Financial Supervisory Authority, FI, for approval. The program provides Peab with the possibility to issue bonds as a complement to bank loans. Peab has previously used borrowing sources outside the traditional bank system. In 2004 a program was established to issue company papers, with a loan framework of SEK 3 billion. In the beginning of November 2011 bonds were issued for a total of SEK 1,000 m in a so-called private placement with a financial institution.

“Market conditions on the Nordic construction market are from a European perspective relatively good, considering the strong economies in Sweden, Norway and Finland. However, we are well prepared to quickly adjust to the changing world around us and focus is on taking advantage of the size of our business as well as improving cost-effectiveness.

We are currently in a building up phase, which affects operating margins and ties up capital. Our strong financial base built on a long tradition of profitable growth, well diversified operations, considerable access to funds and stable bank relations helps us counteract this.

Long-term value creation has always been a basic premise for Peab since the company was founded over 50 years ago. During my first year as CEO we have continued to build on that ambition by growing, organically and through acquisitions, determined to become the Nordic community builder,” says Jan Johansson, President and CEO of Peab.

For further information, please contact:
Jesper Göransson, CFO Peab, +46 733 37 10 13
Fredrik Wahrolén, communication manager Peab, +46 733 37 10 07

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 07.00.a.m. 30 November 2011.

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