Peab — Interim / Quarterly Report 2024

Jul 16, 2024

Half-year report

JAN U ARY – JUNE 2024

Student Housing Visby

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Continued strong level of orders received during the quarter

In this re port amounts and com ments are based on seg ment re port ing if not oth er wise spec i fied. The Group has dif fer ent ac count ing prin ci ples in seg ment re port ing com pared to re port ing ac cord ing to IFRS for our own hous ing de vel op ment projects and for IFRS 16 (pre vi ous ly op er a tional leas ing con tracts). For more in for ma tion on our ac count ing prin ci ples and the dif fer ences be tween seg ment re port ing and re port ing ac cord ing to IFRS, see note 1 and 3. For in for ma tion on al ter na tive per for mance mea sures, see the sec tion Al ter na tive per for mance mea sures and de f i n i tions.

Sum ma ry ac cord ing to seg ment re port ing

April – June 2024

• Net sales SEK 15,232 million (15,756)

• Operating profit SEK 619 million (1,090)

• Operating margin 4.1 percent (6.9)

• Pre-tax profit SEK 522 million (1,406)

• Earnings per share SEK 1.48 (3.86)

• Orders received SEK 16,434 million (12,505)

• Cash flow before financing SEK -95 million (-2,321)

January – June 2024

• Net sales SEK 26,373 million (28,446)

• • Operating profit SEK 513 million (934) • Operating margin 1.9 percent (3.3)

• Pre-tax profit SEK 340 million (1,210)

• Earnings per share SEK 1.03 (3.32)

• Orders received SEK 34,323 million (23,547)

• Order backlog SEK 50,578 million (43,638)

• Cash flow before financing SEK -313 million (-3,229)

• Net debt SEK 9,585 million (11,717)

• Net debt/equity ratio 0.6 (0.8)

Group

Group
MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Segment reporting Net sales Operating profit Operating margin, % Pre-tax profit Profit for the period Earnings per share, SEK Return on equity, % Return on capital employed, % Net debt Net debt/equity ratio, multiple Equity/assets ratio, % Cash flow before financing Average number of employees Reporting according to IFRS Net sales, IFRS Operating profit, IFRS Pre-tax profit, IFRS Profit for the period, IFRS Earnings per share, IFRS, SEK Net debt, IFRS Equity/assets ratio, IFRS, % Cash flow before financing, IFRS 1) 1)	15,232 15,756 619 1,090 4.1 6.9 522 1,406 427 1,110 1.48 3.86 5.0 15.5 5.9 12.7 9,585 11,717 0.6 0.8 32.0 31.5 -95 -2,321 13,073 13,805 16,928 16,098 814 1,197 706 1,503 596 1,188 2.08 4.13 13,154 19,743 29.1 25.9 2,271 -1,373	26,373 28,446 513 934 1.9 3.3 340 1,210 298 956 1.03 3.32 5.0 15.5 5.9 12.7 9,585 11,717 0.6 0.8 32.0 31.5 -313 -3,229 12,551 13,538 28,378 29,076 802 1,204 607 1,458 540 1,153 1.88 4.01 13,154 19,743 29.1 25.9 2,252 -1,552	56,748 58,821 1,432 1,853 2.5 3.2 1,025 1,895 756 1,414 2.63 4.92 5.0 9.5 5.9 8.7 9,585 8,676 0.6 0.6 32.0 34.0 1,599 -1,317 13,318 13,808 60,902 61,600 2,184 2,586 1,735 2,586 1,375 1,988 4.79 6.92 13,154 14,537 29.1 29.4 6,459 2,655

1) Calculated on rolling 12 months

Operating profit

Net sales

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MSEK
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MSEK
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18,000 1,400
1,200
15,000
1,000
12,000 800
600
9,000 400
6,000 200
0
3,000 -200
0
Effect of Mall of Scandinavia
Q2-22Q3-22Q4-22Q1-23Q2-23Q3-23Q4-23Q1-24Q2-24
Q2-22Q3-22Q4-22Q1-23Q2-23Q3-23Q4-23Q1-24Q2-24
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Orders received

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MSEK
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Q2-22Q3-22Q4-22Q1-23Q2-23Q3-23Q4-23Q1-24Q2-24
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2

Comments from the CEO

Our broad busi ness model en ables us to take ad van tage of the de mand cur rent ly in civil en gi neer ing, paving and other build ing con struc tion. Our op - er a tions in civil en gi neer ing and paving con tin ue to grow prof itably. The level of or ders re ceived con tin ued to be high in the sec ond quar ter as well and order back log sur passed SEK 50 bil lion for the first time in Peabʼs his to ry.

Group development

The first half of 2024 was char ac ter ized by con tin ued var ied ac tiv i ty on Peabʼs dif fer ent mar kets. Civil en gi neer ing, paving and other build ing con - struc tion de vel oped well while the Nordic hous ing mar ket con tin ued to be weak. Group net sales con tract ed by seven per cent dur ing the first halfyear and amount ed to SEK 26,373 mil lion. Op er at ing prof it was SEK 513 mil lion (934) and the op er at ing mar gin was 1.9 per cent (3.3). The com pa - ra ble pe ri od in clud ed SEK 400 mil lion re sult ing from a judge ment in the Mall of Scan di navia ar bi tra tion. The net debt/eq ui ty ratio im proved to 0.6 (0.8) at the end of June.

The level of or ders re ceived amount ed to SEK 34,323 mil lion (23,547) dur - ing the first half- year. This is the sec ond quar ter in row with a high level of or ders re ceived, de spite the weak de mand on the hous ing mar ket. Dur ing the quar ter we re ceived sev er al major or ders in busi ness area Civil En gi - neer ing, among them con struc tion of New Bodø Air port worth NOK 3.3 bil lion. We were also en trust ed with other civil en gi neer ing projects such as ex pand ing E20 be tween Götene and Mari es tad as well as con struc tion of roads and rail roads in Boden. This means we ex tend our order back log which amount ed to a record high SEK 50,578 bil lion (43,638). An oth er civil en gi neer ing project worth men tion ing is the sec tion of E6 at Ste nung sund hit by a land slide. Repa ra tion of this stretch of road was com plet ed and the high way opened for traf fic much ear li er than sched uled, a fact Iʼm very proud of.

As pre vi ous ly stat ed op er a tions in Con struc tion and Civil En gi neer ing in - creas ing ly par tic i pate in di a logues early on with cus tomers prior to planned projects and we are there fore ex pe ri enc ing a greater num ber of pre lim i nary agree ments, so- called phase 1 con tracts. Through the pre lim i - nary agree ments Peab is con tract ed to ar rive at, to geth er with the cus - tomer, an op ti mal prod uct with the right qual i ty and also deal with risks and un cer tain ties. Dur ing the sec ond quar ter of the year sev er al projects went from phase 1 to phase 2, which means that they shift ed into pro duc - tion and Peab has there by re ceived or ders for that. The project in Bodø is one such ex am ple. At the same time new projects con tin ue to flow into phase 1 but some also fall away. Cur rent ly the po ten tial worth of the final con struc tion con tracts from these pre lim i nary agree ments is around SEK 15 bil lion over the next two years (SEK 19 bil lion De cem ber 31, 2023).

Business area development

Net sales have con tract ed in busi ness area Con struc tion due to the weak hous ing mar ket but to a cer tain ex tent the con tin ued good de mand in other build ing con struc tion has com pen sat ed for this, pri mar i ly from the pub lic sec tor. The op er at ing mar gin has been sta ble dur ing the pe ri od and amount ed to 1.8 per cent (2.0). The ro bust level of or ders re ceived in busi - ness area Civil En gi neer ing gen er ates a high level of pro duc tion and the op er at ing mar gin has im proved dur ing the pe ri od to 3.1 per cent (2.9). In total, the op er at ing mar gin for the con struc tion con tract busi ness es dur - ing the first half- year amount ed to 2.3 per cent (2.3).

The paving sea son is now in full force in busi ness area In dus try. Paving op - er a tions are de vel op ing well with a sig nif i cant num ber of con tracts through out the Nordic re gion, par tic u lar ly in Fin land. Op er a tions in pre fab con struc tion el e ments and rental op er a tions have been af fect ed by the weak hous ing mar ket and ac tiv i ty in them was lower com pared to the first half- year 2023. The op er at ing mar gin for the busi ness area in creased and amount ed to 7.4 per cent (6.2) in the quar ter.

In busi ness area Project De vel op ment the level of sales of our own de vel - oped homes con tin ues to be low but on the bright side we are sell ing them at an even pace and have noted greater in ter est among buy ers, above all in Swe denʼs major cities. De mand for newly pro duced homes that will not be ready for oc cu pa tion for quite some time con tin ues to be low and no new hous ing projects were start ed dur ing the sec ond quar ter (185). In order for de mand to re cov er in ter est rates have to come down and prices on the sec ond hand mar ket go up.

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The op er at ing mar gin was 2.5 per cent on a rolling twelve month basis, com pared to the tar get of six per cent, and has been im pact ed by the weak hous ing mar ket. The net debt/eq ui ty ratio was 0.6 at the end of the quar - ter, which is in side the tar get in ter val 0.3-0.7.

In the spring sur vey the eNPS score in creased by a point to 27 from the lat est sur vey which was in the au tumn of 2023. This is well over the Nordic bench mark in the seg ment in dus try and man u fac tur ing. We are par tic u - lar ly pleased to note that par tic i pa tion was 90 per cent. This shows how very en gaged our em ploy ees are.

Our tar get for se ri ous ac ci dents is a con tract ing trend and cal cu lat ed on a rolling twelve month basis the num ber of se ri ous ac ci dents was 44 per June 30, 2024 (48 per De cem ber 31, 2023). We can never ac cept work place ac ci dents and there fore con tin ue our work for safe work places with un - abat ed in ten si ty.

Sustainability

An im por tant step for ward in our sus tain abil i ty work is that Peab be came the first civil en gi neer ing com pa ny to use piles pro duced with SSAB Zero, a ma te r i al based on re cy cled scrap steel and pro duced with fos sil free elec tric i ty and bio gas. This re duces car bon emis sions by around 80 per - cent com pared to piles with tra di tion al ly pro duced steel. The piles are part of a new dock Peab is build ing at the Port of Skellefteå that will con - tribute to de vel op ing the port by en abling it to han dle more and larg er trans porta tion.

At the end of the quar ter we suc cess ful ly is sued green bonds for a total of SEK 1,500 mil lion where SEK 900 mil lion ma ture in three years and SEK 600 mil lion ma ture in 4.5 years. The funds will fi nance green in vest ments that con tribute to Peabʼs ef forts to achieve our cli mate goals.

Market and prospects for the future

Prospects for the Nordic con struc tion mar kets are on the whole the same as they were in our sub mar kets the pre vi ous quar ter. The civil en gi neer ing mar kets are ex pect ed to re main sta ble on a high level. The hous ing mar - kets are ex pect ed to con tin ue to be weak until the ef fect of lower in ter est rates is felt. Peab has a well- dimensioned de vel op ment rights port fo lio in at trac tive lo ca tions in the Nordic re gion and in an tic i pa tion of mar ket re - cov ery we are fur ther de vel op ing and prepar ing projects for the fu ture.

Look ing back on the first half of 2024 itʼs ap par ent once again that Peabʼs four busi ness areas and local roots close to cus tomers serve us well. We can see how this busi ness model cre ates sta bil i ty in our op er a tions, which is par tic u lar ly ev i dent in the ex cel lent level of or ders re ceived in the first half- year. In other words, we are well- equipped to face any mar ket sit u a - tion.

Target outcome

We are re port ing the out come for four of our nine ex ter nal tar gets this quar ter: op er at ing mar gin, net debt/eq ui ty ratio, at trac tive em ploy er (eNPS) and se ri ous ac ci dents.

Jes per Görans son Pres i dent and CEO

3

Net sales and profit

April – June 2024

Group net sales de creased by three per cent dur ing the sec ond quar ter 2024 and amount ed to SEK 15,232 mil lion (15,756).

Net sales in busi ness area Con struc tion de creased by 16 per cent com pared to the same quar ter last year. The de crease is due to less ac tiv i ty in new hous ing pro - duc tion which has not been fully com pen sat ed for by other types of projects, and has been ex pe ri enced in all the coun tries we op er ate in. Ac tiv i ty in busi ness area Civil En gi neer ing con tin ued to be on a high level dur ing the pe ri od and net sales in creased by ten per cent com pared to the cor re spond ing quar ter last year. Net sales in busi ness area In dus try in creased by 13 per cent due to in creased net sales in paving. Net sales in busi ness area Project De vel op ment de creased by 54 per - cent due to the weak de mand for hous ing through out the Nordic re gion and this has af fect ed net sales in Hous ing De vel op ment.

Op er at ing prof it for the sec ond quar ter 2024 amount ed to SEK 619 mil lion (1,090) and the op er at ing mar gin was 4.1 per cent (6.9). The com pa ra ble pe ri od in cludes a pos i tive ef fect of SEK 400 mil lion from the out come of the ar bi tra tion de ci sion in the case be tween Peab and Unibail- Rodamco-Westfield re gard ing the con tract Mall of Scan di navia in Solna (MoS). Ex clud ing the ef fect of MoS, op er at ing prof it for the com pa ra ble pe ri od was SEK 690 mil lion and the op er at ing mar gin was 4.4 per cent. For more in for ma tion about the ar bi tra tion, see the sec tion Risks and un cer tain ty fac tors and An nu al and Sus tain abil i ty Re port 2023.

In busi ness area Con struc tion the op er at ing mar gin was un changed at 1.9 per - cent (1.9 excl. MoS) and in busi ness area Civil En gi neer ing the op er at ing mar gin was un changed at 3.9 per cent com pared to the sec ond quar ter 2023. In total the op er at ing mar gin for con struc tion con tract op er a tions amount ed to 2.7 per cent (2.6 excl. MoS). In busi ness area In dus try, op er at ing prof it im proved to SEK 449 mil lion (333) and the op er at ing mar gin was 7.4 per cent (6.2). The op er at ing prof it in paving im proved com pared to the sec ond quar ter of 2023, while both pre fab op er a tions and rental op er a tions were af fect ed by the weak hous ing mar ket and re port ed lower op er at ing prof it. Op er at ing prof it in busi ness area Project De vel - op ment was SEK -33 mil lion (114). The neg a tive op er at ing prof it is re lat ed to Hous ing De vel op ment where no pro duc tion start ed on our own hous ing de vel op - ments dur ing the quar ter and where there are only a few on go ing hous ing projects. In Prop er ty De vel op ment cap i tal gains had a pos i tive ef fect of SEK 17 mil lion (7). Our part ly owned com pa nies gen er at ed less prof it con tri bu tion in the sec ond quar ter of 2024 com pared to the cor re spond ing quar ter in 2023.

De pre ci a tion and write- downs for the sec ond quar ter were SEK -354 mil lion (-349).

Elim i na tion and re ver sal of in ter nal prof it in our own projects af fect ed op er at ing prof it dur ing the qurater by net SEK -6 mil lion (-16).

Net fi nan cial items amount ed to SEK -97 mil lion (316) of which net in ter est was SEK -109 mil lion (-103 excl. MoS). The com par a tive quar ter in clud ed a pos i tive ef - fect of SEK 390 mil lion as a re sult of the ar bi tra tion in MoS.

Pre- tax prof it was SEK 522 mil lion (1,406). Prof it for the pe ri od was SEK 427 mil - lion (1,110).

Operating profit and operating margin, per quarter

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MSEK %
1,600 12.5
1,400
1,200 10.0
1,000 7.5
800
600 5.0
400
200 2.5
0 0.0
-200
-400 -2.5
Effect of Mall of Scandinavia (MoS) Operating profit
Operating margin
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
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• Op er at ing mar gin ex clud ing ef fect of MoS was 4.4%. For more in for ma tion on ar bi tra tion in Mall of Scan di navia, see the An nu al and Sus tain abil i ty Re port 2023

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Silververket
Sala
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4

January – June 2024

Group net sales for the first half- year 2024 de creased by seven per cent and amount ed to SEK 26,373 mil lion (28,446). The de crease is due to the weak de - mand on the hous ing mar ket. Even after ad just ments for di vest ed units and ex - change rate ef fects, net sales de creased by seven per cent. Net sales for the lat est rolling 12 month pe ri od amount ed to SEK 56,748 mil lion com pared to SEK 58,821 mil lion for the full year 2023. The por tion of pub lic sec tor cus tomers con tin ued to in crease and ac count ed for 53 per cent (46) and pri vate cus tomers for 47 per cent (54) of net sales cal cu lat ed on a rolling 12 month basis.

Net sales in busi ness area Con struc tion de creased by 19 per cent com pared to the same pe ri od last year. The de crease is due to less ac tiv i ty in new hous ing pro duc - tion which has not been fully com pen sat ed for by other types of projects, and has been ex pe ri enced in all the coun tries we op er ate in. Ac tiv i ty in busi ness area Civil En gi neer ing con tin ued to be on a high level dur ing the pe ri od and net sales in - creased by nine per cent. Net sales in busi ness area In dus try in creased by four per cent pri mar i ly due to high er net sales in paving. Both pre fab op er a tions and rental op er a tions have been af fect ed by the weak hous ing mar ket and re port ed a lower level of ac tiv i ty com pared to the first half of last year. Net sales in busi ness area Project De vel op ment de creased by 48 per cent due to the weak de mand for hous ing through out the Nordic re gion and this has af fect ed net sales in Hous ing De vel op ment.

Op er at ing prof it for the first half- year 2024 amount ed to SEK 513 mil lion (934) and the op er at ing mar gin was 1.9 per cent (3.3). The com pa ra ble pe ri od in cludes a pos i tive ef fect of SEK 400 mil lion from the out come of the ar bi tra tion de ci sion in the case be tween Peab and Unibail- Rodamco-Westfield re gard ing the con tract Mall of Scan di navia in Solna (MoS). Ex clud ing the ef fect of MoS, op er at ing prof it for the com pa ra ble pe ri od amount ed to SEK 534 mil lion and the op er at ing mar - gin was 1.9 per cent. In the lat est rolling 12 month pe ri od the op er at ing mar gin amount ed to 2.5 per cent com pared to 3.2 per cent for the en tire year of 2023 (2.5 per cent excl. MoS).

In busi ness area Con struc tion the op er at ing mar gin de creased to 1.8 per cent (2.0 excl. MoS) while the op er at ing mar gin in busi ness area Civil En gi neer ing in - creased to 3.1 per cent (2.9). In total the op er at ing mar gin for con struc tion con - tract op er a tions amount ed to 2.3 per cent (2.3 excl. MoS). In busi ness area In dus - try, which has a sig nif i cant sea son al pat tern pri mar i ly in paving op er a tions where the first quar ter is char ac ter ized by a sub stan tial deficit, op er at ing prof it amount - ed to SEK -30 mil lion (-102) and the op er at ing mar gin was -0.4 per cent (-1.3). Op - er at ing prof it in paving im proved dur ing the pe ri od, while both pre fab op er a tions and rental op er a tions re port ed lower op er at ing prof it as a re sult of the weak er hous ing mar ket. Op er at ing prof it in busi ness area Project De vel op ment was lower and amount ed to SEK 213 mil lion (241). Op er at ing prof it in clud ed pos i tive ef fects from cap i tal gains in Prop er ty De vel op ment of SEK 275 mil lion (8), of which the sale of the shares in the part ly owned com pa ny Tor net Bostad spro duk - tion con tributed by SEK 220 mil lion. Op er at ing prof it in Hous ing De vel op ment was neg a tive and the op er at ing mar gin was -4.0 per cent (6.5). The neg a tive op er - at ing prof it is due to few pro duc tion starts of our own hous ing de vel op ments dur - ing the pe ri od and fewer hous ing projects in on go ing pro duc tion.

De pre ci a tion and write- downs for the first half- year were SEK -704 mil lion (-692).

Elim i na tion and re ver sal of in ter nal prof it in our own projects af fect ed op er at ing prof it dur ing the pe ri od by net SEK 1 mil lion (-12).

Net fi nan cial items amount ed to SEK -173 mil lion (276) of which net in ter est was SEK -211 mil lion (-171 excl. MoS). The com par a tive pe ri od in clud ed a pos i tive ef - fect of SEK 390 mil lion as a re sult of the ar bi tra tion in Mall of Scan di navia.

Pre- tax prof it was SEK 340 mil lion (1,210). Prof it for the pe ri od was SEK 298 mil - lion (956).

Operating profit and operating margin, rolling 12 months

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MSEK %
4,000 8.0
3,000 6.0
2,000 4.0
1,000 2.0
0 0.0
Effect of Mall of Scandinavia (MoS) Operating profit
Operating margin
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
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• Op er at ing mar gin rolling 12 months ex clud ing ef fect of MoS was 3.8% as of June 30, 2023, 3.6% as of Sep tem ber 30, 2023, 2.5% as of De cem ber 31, 2023 and 2.6% as of March 31, 2024.

Seasonal variations

Group op er a tions, par tic u lar ly in In dus try and Civil En gi neer ing, are nor mal ly af - fect ed by fluc tu a tions that come with the cold weath er dur ing the win ter half of the year. The first quar ter is usu al ly weak er than the rest of the year.

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Rimnersvallen
Ud de val la
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5

Financial position and cash flow

Financial position

Total as sets ac cord ing to seg ment re port ing per June 30, 2024 were SEK 46,840 mil lion (46,886). Eq ui ty amount ed to SEK 14,992 mil lion (14,770), which means the eq ui ty/as sets ratio was 32.0 per cent (31.5).

Interest- bearing net debt amount ed to SEK 9,585 mil lion (11,717) per June 30, 2024. The de crease in net debt is due to less tied up work ing cap i tal and lower in - vest ments in busi ness area In dus try. Net debt in cludes project fi nanc ing of the un sold part of our own hous ing de vel op ments while they are in pro duc tion. The un sold part was SEK 2,272 mil lion (2,868). Interest- bearing re ceiv ables amount ed to SEK 2,652 mil lion (1,552). The in crease is pri mar i ly due to a cap i tal claim of SEK 1,067 mil lion on Unibail- Rodamco-Westfield ac cord ing to the ar bi tra tion de - ci sion an nounced on June 30, 2023. For de tails re gard ing the ar bi tra tion de ci sion, see the sec tion Risks and un cer tain ty fac tors and An nu al and Sus tain abil i ty Re - port 2023. The av er age in ter est rate in the loan port fo lio, in clud ing de riv a tives, was 5.7 per cent (5.0) on June 30, 2024.

Group liq uid funds ac cord ing to IFRS, in clud ing unuti lized cred it fa cil i ties but ex - clud ing project fi nanc ing, were SEK 6,605 mil lion at the end of the pe ri od com - pared to SEK 6,410 mil lion on De cem ber 31, 2023.

As a con se quence of Peab con sol i dat ing Swedish tenant- owner as so ci a tions per Jan u ary 1, 2020 ac cord ing to IFRS, sure ty for tenant- owner as so ci a tions under pro duc tion is not re port ed. When home buy ers take pos ses sion of their apart - ments and the tenant- owner as so ci a tion is no longer con sol i dat ed in Peabʼs ac - counts, Peab then re ports the part of sure ty that cov ers un sold homes. Peab has a guar an tee oblig a tion to ac quire un sold homes six months after com ple tion. Group con tin gent li a bil i ties, ex clud ing joint and sev er al li a bil i ties in trad ing and lim it ed part ner ships, amount ed to SEK 2,534 mil lion at the end of the pe ri od com pared to SEK 2,428 mil lion on De cem ber 31, 2023. Sure ty for cred it lines in tenant- owner as so ci a tions re gard ing the un sold part after de con sol i da tion made up SEK 518 mil lion of con tin gent li a bil i ties com pared to SEK 328 mil lion on De - cem ber 31, 2023.

Investments and divestments

Dur ing the quar ter tan gi ble and in tan gi ble fixed as sets were net in vest ed for SEK 108 mil lion (623). Dur ing January- June 2024 tan gi ble and in tan gi ble fixed as sets were net in vest ed for SEK 444 mil lion (1,013). The in vest ments main ly refer to in - vest ments in ma chines in busi ness area In dus try. The com pa ra ble pe ri od also in - cludes in vest ments in con struc tion of pro duc tion fa cil i ties for pre fab op er a tions in busi ness area In dus try.

Net in vest ments in project and de vel op ment prop er ties, which are rec og nized as in ven to ry items, to taled SEK 45 mil lion (789) dur ing the quar ter. Net in vest ments in project and de vel op ment prop er ties were SEK 931 mil lion (1,483) dur ing January- June 2024. The in vest ments main ly refer to the ac qui si tion of build ing rights in Nacka through the ac qui si tion of Sick alön Bygg In vest AB in the first quar ter.

Net debt

sh flow Net debt
MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Bank loans Commercial papers Bonds Financial leasing liabilities Project financing, unsold part of housing projects Other interest-bearing liabilities Interest-bearing receivables Liquid funds	5,668 7,474 5,380 474 202 523 4,406 3,277 3,047 781 769 837 2,272 2,868 2,685 126 46 85 -2,652 -1,552 -2,638 -1,490 -1,367 -1,243
Net debt, segment reporting	9,585 11,717 8,676
Additional leasing liabilities according to IFRS 16 Project financing, sold part of housing projects	1,516 1,482 1,420 2,053 6,544 4,441
Net debt, IFRS	13,154 19,743 14,537

Net debt and net debt/equity ratio

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MSEK Multiple
12,500 1.0
10,000 0.8
7,500 0.6
5,000 0.4
2,500 0.2
0 0.0
Net debt Net debt/equity ratio
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
----- End of picture text -----

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Housing project
Oulu, Fin land
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6

Cash flow

April – June 2024

Cash flow from cur rent op er a tions amount ed to SEK 62 mil lion (-1,886) in the sec - ond quar ter. Cash flow from changes in work ing cap i tal was SEK -732 mil lion (-2,452). The neg a tive cash flow was pri mar i ly gen er at ed in busi ness area In dus - try where the paving sea son start ed in the sec ond quar ter, which en tails build ing up work ing cap i tal.

Cash flow from in vest ment ac tiv i ties was SEK -157 mil lion (-435). The in vest ments con sist ed of ma chines and ve hi cles in busi ness area In dus try.

Cash flow be fore fi nanc ing amount ed to SEK -95 mil lion (-2,321).

Cash flow from fi nanc ing op er a tions amount ed to SEK 556 mil lion (1,974). Dur ing the quar ter div i dends of SEK -431 mil lion (-1,150) were paid to share hold ers.

January – June 2024

Cash flow from cur rent op er a tions amount ed to SEK -812 mil lion (-2,587) dur ing the pe ri od. Cash flow from changes in work ing cap i tal was SEK -1,120 mil lion (-3,005). The neg a tive cash flow main ly refers to the ac qui si tion of de vel op ment rights in busi ness area Project De vel op ment and build ing up work ing cap i tal in busi ness area In dus try where the paving sea son start ed in the sec ond quar ter.

Cash flow before financing

MSEK

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2,500
2,000
1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
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Cash flow from in vest ment ac tiv i ties was SEK 499 mil lion (-642). Cash flow has been pos i tive ly af fect ed by the sale of the shares in the part ly owned com pa ny Tor net Bostad spro duk tion in busi ness area Project De vel op ment. Cash flow has been charged by in vest ments in ma chines and ve hi cles in busi ness area In dus try.

Cash flow be fore fi nanc ing amount ed to SEK -313 mil lion (-3,229).

Cash flow from fi nanc ing op er a tions amount ed to SEK 553 mil lion (3,085). Dur ing the sec ond quar ter div i dends of SEK -431 mil lion (-1,150) were paid to share hold - ers. Loans taken out amount ed to SEK 982 mil lion (4,235).

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Tingstad Tunnel
Gothen burg
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7

Order situation

April – June 2024

The level of or ders re ceived was high dur ing the sec ond quar ter 2024 and amount ed to SEK 16,434 mil lion (12,505). The level of or ders re ceived in creased in busi ness areas Civil En gi neer ing and In dus try. Busi ness area Civil En gi neer ing in cludes a con struc tion con tract for New Bodø Air port in Nor way now that the project has shift ed from the de vel op ment phase to the im ple men ta tion phase. The cus tomer is Avi nor and the con tract is worth NOK 3.3 bil lion. The num ber of paving con tracts has grown in or ders re ceived in busi ness area In dus try, par tic u - lar ly in Fin land.

January – June 2024

The level of or ders re ceived in creased dur ing the first half- year 2024 and amount - ed to SEK 34,323 mil lion (23,547). The level of or ders re ceived in creased in all busi ness areas but par tic u lar ly in busi ness areas Civil En gi neer ing and In dus try. Busi ness area Civil En gi neer ing in cludes a con struc tion con tract for New Bodø Air port in Nor way for NOK 3.3 bil lion, Västlänkenʼs Haga- Rosenlund stage in Gothen burg worth about SEK 1.5 bil lion, a new dock in Skellefteå for about SEK 1.1 bil lion and op er a tion and main te nance con tracts worth about SEK 1.1 bil lion. A new swim ming pool block in Par tille worth about SEK 1.3 bil lion is in clud ed in busi ness area Con struc tion. The num ber of paving con tracts has grown in or ders re ceived in busi ness area In dus try, par tic u lar ly in Fin land. The level of or ders re - ceived from the pub lic sec tor con tin ued to be good dur ing the pe ri od.

Order back log yet to be pro duced at the end of the pe ri od in creased and amount - ed to SEK 50,578 mil lion com pared to SEK 43,638 mil lion at the end of the same pe ri od last year. Order back log has pri mar i ly grown for pro duc tion that will be car ried out next year and there after. Of the total order back log, 60 per cent (56) is ex pect ed to be pro duced after 2024 (2023). Swedish op er a tions ac count ed for 75 per cent (79) of the order back log.

Preliminary agreements

Op er a tions in Con struc tion and Civil En gi neer ing in creas ing ly par tic i pate in di a - logues early on with cus tomers in prepa ra tion for planned projects and we are there fore ex pe ri enc ing a greater num ber of pre lim i nary agree ments, so- called phase 1 con tracts. Through the pre lim i nary agree ments Peab is con tract ed to ar - rive at, to geth er with the cus tomer, an op ti mal prod uct with the right qual i ty and also deal with risks and un cer tain ties. As of 2024, we present the po ten tial value of the final con struc tion con tracts gen er at ed by these pre lim i nary agree ments.

At the start of 2024 the po ten tial value was ap prox i mate ly SEK 19 bil lion. Dur ing the first half of the year sev er al projects went from phase 1 to phase 2, which meant that the projects be came con struc tion con tracts and are in clud ed in Peabʼs or ders re ceived. At the same time new projects con tin ue to flow into phase 1 but there are oth ers that fall away. The value of the con struc tion con tracts gen - er at ed from these pre lim i nary agree ments at the end of June was around SEK 15 bil lion, and these or ders will po ten tial ly be re ceived over the next two years.

Orders received

Order backlog

Orders received				Order backlog
MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023 22,822 22,779 22,930 15,090 12,765 11,186 573 136 -3,206 -4,083 55,884 45,108	MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Construction Civil Engineering Industry Project Development Eliminations	4,756 6,563 7,985 3,891 4,495 3,159 13 60 -815 -1,168	11,410 11,367 16,173 8,333 7,427 5,848 640 203 -1,327 -2,204		Construction Civil Engineering Industry Project Development Eliminations	23,870 25,848 24,469 22,296 15,075 13,905 6,798 6,077 3,954 1,213 3,080 1,620 -3,599 -6,442 -4,888
Group	16,434 12,505	34,323 23,547		Group	50,578 43,638 39,060

Project size of order backlog, June 30, 2024

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MSEK
24,000
20,000
16,000
12,000
8,000
4,000
0
< 200 MSEK, 42% (50) 201 – 500 MSEK, 29% (29)
501 – 1,000 MSEK, 9% (13) >1,000 MSEK, 20% (8)
----- End of picture text -----

Order backlog allocated over time

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MSEK
24,000
20,000
16,000
12,000
8,000
4,000
0
Current financial year Coming financial year Thereafter
Jun 30, 2023 Jun 30, 2024
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Styrman Bridge
Malmö
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8

We received a number of major construction projects and contracts in the second quarter, including:

• Construction of a new drinking water reservoir in Lund Municipality in western Skåne. The customer is Sydvatten and the contract is worth SEK 136 million.

• Construction of new main water and wastewater pipelines in Nittedal. The customer is Nittedal Municipality and the contract is worth NOK 296 million.

• Construction of a new transformer station in Kanstadbotn in Lødingen Municipality. The customer is Statnett and the contract is worth NOK 127 million.

• Rebuilding and extension of the Lucerna wastewater treatment plant in Västervik. The customer is Västervik Miljö och Energi AB and the contract is worth SEK 248 million. Development of New Bodø Airport as the project shifts from the development to implementation phase. The customer is Avinor and the contract is worth NOK 3,300 million.

• Construction of an industrial building in Malmö. The customer is Wihlborgs Fastigheter and the contract is worth SEK 166 million.

• Rebuilding the town hall in Strängnäs. The customer is Strängnäs Fastighets AB and the contract is worth SEK 240 million.

• Rebuilding E20 at Mariestad with a central barrier. The customer is the Swedish Transport Administration and the contract is worth SEK 848 million.

• Renovation of Finlandʼs oldest swimming pool facility in Helsinki. The customer is the City of Helsinki and the contract is worth EUR 12 million.

• Construction of roads and a railroad to Boden Industrial Park in Boden. The customer is Polar Structure AB and Boden Municipality and the contract is worth SEK 812 million.

• Construction of the Arctic Center of Energy (ACE) in Skellefteå. The customer is Skellefteå Municipality and the contract is worth SEK 390 million.

• Construction connected to the ongoing infrastructure project in Nittedal where a completely new wastewater pipeline is under construction and the main pipeline is being upgraded. The customer is Nittedal Municipality and the contract is worth NOK 106 million.

• Construction of three apartment buildings, a parking garage and courtyards in Espoo. The customer is Espoon Asunnot Oy and the contract is worth EUR 19 million.

• Construction of a K-6 school in Burlöv. The customer is Burlöv Municipality and the contract is worth SEK 374 million.

• Construction of a new technical building in Hagfors. The customer is Hagfors Municipality and the contract is worth SEK 199 million.

• Construction of the new jail in Borås. The customer is Specialfastigheter and the contract is worth SEK 499 million.

The following own housing developments were production-started in the second quarter:

No own hous ing de vel op ments were start ed in the sec ond quar ter.

We received a number of federal, regional and municipal paving contracts in the second quarter, including:

• One-year federal contract in North Ostrobothnia worth EUR 15.5 million.

• One-year federal contract in Kainuu worth EUR 9.8 million. One-year federal contract in Kainuu and North Karelia worth EUR 8.9 million.

• One-year federal contract in North Ostrobothnia worth EUR 8.9 million.

• One-year federal contract in North Ostrobothnia worth EUR 7.3 million.

• One-year regional contract in Innlandet County worth NOK 53 million.

• One-year regional contract in Mjøsa Lake region worth NOK 50 million.

• One-year regional contract in Tromsø worth NOK 44 million.

• Two-year municipal contract in Ronneby worth SEK 40 million.

• One-year federal contract in Hjallerup worth DKK 21 million.

• One-year regional contract in Gudbrandsdalen/Valdres worth NOK 65 million.

9

Overview business areas

The Peab Group is pre sent ed in four dif fer ent busi ness areas: Con struc tion, Civil En gi neer ing, In dus try and Project De vel op ment. The busi ness areas are also op - er at ing seg ments.

For more in for ma tion re gard ing the dif fer ences be tween seg ment re port ing and re port ing ac cord ing to IFRS, see note 1 and note 3.

In ad di tion to the busi ness areas cen tral com pa nies, cer tain sub sidiaries and other hold ings are pre sent ed as Group func tions. The cen tral com pa nies pri mar i - ly con sist of the par ent com pa ny Peab AB and Peab Fi nans AB.

Net sales and operating profit per business area

		Net sales			Operating profit
MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Construction Civil Engineering Industry Project Development – of which Property Development – of which Housing Development Group functions Eliminations	6,358 7,540 4,278 3,891 6,033 5,347 720 1,569 21 65 699 1,504 345 390 -2,502 -2,981	12,146 14,962 7,836 7,219 8,444 8,126 1,775 3,410 44 74 1,731 3,336 674 767 -4,502 -6,038	24,964 27,780 15,781 15,164 20,280 19,962 4,087 5,722 504 534 3,583 5,188 1,394 1,487 -9,758 -11,294	123 141 165 152 449 333 -33 114 21 29 -54 85 -79 -34 -6 -16	224 303 242 211 -30 -102 213 241 282 23 -69 218 -137 -107 1 -12	-38 41 532 501 1,034 962 276 304 366 107 -90 197 -329 -299 -43 -56
Group, segment reporting excl. MoS	15,232 15,756	26,373 28,446	56,748 58,821	619 690	513 534	1,432 1,453
Construction – effect Mall of Scandinavia (MoS)				400	400	400
Group, segment reporting	15,232 15,756	26,373 28,446	56,748 58,821	619 1,090	513 934	1,432 1,853
Adjustment housing to IFRS IFRS 16‚ additional leases	1,696 342 – –	2,005 630 – –	4,154 2,779 – –	190 98 5 9	275 251 14 19	720 696 32 37
Group, IFRS	16,928 16,098	28,378 29,076	60,902 61,600	814 1,197	802 1,204	2,184 2,586
Of which construction contract businesses according to segment reporting excl. MoS (Construction and Civil Engineering)	10,636 11,431	19,982 22,181	40,745 42,944	288 293	466 514	494 542

		Operating margin
Percent	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Construction Civil Engineering Industry Project Development – of which Property Development – of which Housing Development Group functions Eliminations	1.9 1.9 3.9 3.9 7.4 6.2 -4.6 7.3 100.0 44.6 -7.7 5.7	1.8 2.0 3.1 2.9 -0.4 -1.3 12.0 7.1 640.9 31.1 -4.0 6.5	-0.2 0.1 3.4 3.3 5.1 4.8 6.8 5.3 72.6 20.0 -2.5 3.8
Group, segment reporting excl. MoS	4.1 4.4	1.9 1.9	2.5 2.5
Group, segment reporting	4.1 6.9	1.9 3.3	2.5 3.2
Adjustment housing to IFRS IFRS 16‚ additional leases
Group, IFRS	4.8 7.4	2.8 4.1	3.6 4.2
Of which construction contract businesses according to segment reporting excl. MoS (Construction and Civil Engineering)	2.7 2.6	2.3 2.3	1.2 1.3

10

Business area Construction

With local roots close to cus tomers busi ness area Con struc tion does con struc - tion work for both ex ter nal and in ter nal cus tomers. Con struc tion projects in - clude every thing from new pro duc tion of hous ing, pub lic and com mer cial premis es to ren o va tions and ex ten sions as well as con struc tion main te nance.

Op er a tions in busi ness area Con struc tion are run via some 150 local of fices around the Nordic re gion, or ga nized in eleven re gions in Swe den, three in Nor - way and two in Fin land. There are spe cial ized hous ing pro duc tion units in Stock - holm, Gothen burg and the Öre sund re gion. Con struc tion main te nance is a na - tion wide or ga ni za tion in Swe den fo cused on major cities. Other re gions are re - spon si ble for all types of con struc tion projects in their ge o graph ic area.

Net sales and profit

April – June 2024

Net sales for the sec ond quar ter 2024 de creased by 16 per cent and amount ed to SEK 6,358 mil lion (7,540). The de crease is due to less ac tiv i ty in new hous ing pro - duc tion which has not been fully com pen sat ed by other types of projects and has been ex pe ri enced in all the coun tries we op er ate in. Op er at ing prof it amount ed to SEK 123 mil lion (141 excl. MoS) and the op er at ing mar gin was 1.9 per cent (1.9 excl. MoS). The com pa ra ble pe ri od in cludes a pos i tive ef fect of SEK 400 mil lion from the out come of the ar bi tra tion de ci sion in the case be tween Peab and Unibail- Rodamco-Westfield re gard ing the con tract Mall of Scan di navia in Solna (MoS). Op er at ing prof it for the com pa ra ble pe ri od amount ed to SEK 541 mil lion and the op er at ing mar gin was 7.2 per cent. For more in for ma tion on the out come of ar bi tra tion, see the sec tion Risks and un cer tain ty fac tors and An nu al and Sus - tain abil i ty Re port 2023.

January – June 2024

Net sales for the first half- year 2024 de creased by 19 per cent and amount ed to SEK 12,146 mil lion (14,962). The de crease is due to less ac tiv i ty in new hous ing pro duc tion which has not been fully com pen sat ed by other types of projects and has been ex pe ri enced in all the coun tries we op er ate in.

The por tion of other build ing con struc tion, pri mar i ly for the pub lic sec tor, has in - creased in net sales while the por tion of hous ing has con tin ued to de crease. Cal - cu lat ed on a rolling 12 month pe ri od, per June 30, 2024 hous ing ac count ed for 32 per cent (43) of net sales.

Op er at ing prof it amount ed to SEK 224 mil lion (303 excl. MoS) and the op er at ing mar gin was 1.8 per cent (2.0 excl. MoS). The com pa ra ble pe ri od in cludes a pos i - tive ef fect of SEK 400 mil lion from the out come of the ar bi tra tion de ci sion in the case be tween Peab and Unibail- Rodamco-Westfield re gard ing the con tract Mall of Scan di navia in Solna (MoS). Op er at ing prof it for the com pa ra ble pe ri od amount ed to SEK 703 mil lion and the op er at ing mar gin was 4.7 per cent. The op - er at ing mar gin for the lat est rolling 12 month pe ri od was -0.2 per cent com pared to 0.1 per cent ex clud ing the ef fect of MoS for the full year 2023.

Orders received and order backlog

April – June 2024

The level of or ders re ceived dur ing the sec ond quar ter con tract ed and amount ed to SEK 4,756 mil lion (6,563). Or ders re ceived from the pub lic sec tor for other build ing con struc tion con tin ued to be good dur ing the quar ter.

January – June 2024

The level of or ders re ceived dur ing the first half- year amount ed to SEK 11,410 mil lion (11,367). The pe ri od in cludes a new swim ming pool block with a swim - ming pool fa cil i ty, homes, com mer cial premis es and park ing space in Par tille for a total worth of around SEK 1.3 bil lion. In ad di tion, or ders re ceived from the pub - lic sec tor for other build ing con struc tion con tin ued to be good.

Order back log on June 30, 2024 amount ed to SEK 23,870 mil lion (25,848). The por tion of other build ing con struc tion has con tin ued to in crease in order back log while the por tion of hous ing projects has de creased.

Net sales

per product area, rolling 12 months

per geographic market, rolling 12 months

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Housing, 32% (43)
Construction maintenance, 7% (6)
Sports facilities, 6% (4)
Industrial, 4% (4)
Offices, 11% (9)
Logistics, 4% (2)
Service and retail, 4% (4)
Schools and education, 14% (12)
Health and social care, 8% (7)
Other building construction, 10% (9)
----- End of picture text -----

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Sweden, 77% (71)
Norway, 13% (16)
Finland, 10% (13)
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Order backlog, June 30, 2024

per product area

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per project size

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----- Start of picture text -----

MSEK
Housing, 27% (37)
12,000
Construction maintenance, 2% (2)
Sports facilities, 10% (7) 10,000
Industrial, 4% (3) 8,000
Offices, 17% (17) 6,000
Logistics, 6% (4) 4,000
Service and retail, 1% (1) 2,000
Schools and education, 12% (13) 0
Health and social care, 10% (8)
Other building construction, 11% (8) < 200 MSEK, 38% (41) 201 – 500 MSEK, 42% (36)
501 – 1,000 MSEK, 6% (15) >1,000 MSEK, 14% (8)
----- End of picture text -----

Key ratios

Key ratios
	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Net sales, MSEK Operating profit excl. MoS, MSEK Operating margin excl. MoS, % Operating profit, MSEK Operating margin, % Orders received, MSEK Order backlog, MSEK Operating cash flow, MSEK Average number of employees	6,358 7,540 123 141 1.9 1.9 123 541 1.9 7.2 4,756 6,563 23,870 25,848 2 -461 4,585 5,087	12,146 14,962 224 303 1.8 2.0 224 703 1.8 4.7 11,410 11,367 23,870 25,848 164 -236 4,568 5,150	24,964 27,780 -38 41 -0.2 0.1 -38 441 -0.2 1.6 22,822 22,779 23,870 24,469 546 146 4,767 5,067

11

Business area Civil Engineering

Busi ness area Civil En gi neer ing is a lead ing actor in Swe den and one of the larg er play ers in Nor way. Civil En gi neer ing works with land scap ing and pipelines, builds and main tains roads, rail roads, bridges and other in fra struc - ture as well as does foun da tion work. Op er a tions are or ga nized in seven ge o - graph ic re gions, one re gion for foun da tions, and one na tion wide re gion in Swe - den for op er a tion and main te nance.

Local mar ket in busi ness area Civil En gi neer ing works with land scap ing, streets, pipelines, foun da tion work as well as con struc tion of dif fer ent kinds of fa cil i ties and water and pipeline sys tems. In fra struc ture and heavy con struc tion builds roads, rail roads, bridges, tun nels and ports. Op er a tion and main te nance han dles na tion al and mu nic i pal high ways and street net works, tends parks and out door prop er ty as well as op er ates water and waste water net works.

Op er at ing prof it in creased and amount ed to SEK 242 mil lion (211) and the op er - at ing mar gin im proved to 3.1 per cent (2.9). The op er at ing mar gin for the lat est 12 month pe ri od was 3.4 per cent com pared to 3.3 per cent for the full year 2023.

Orders received and order backlog

April – June 2024

The level of or ders re ceived dur ing the sec ond quar ter was high and amount ed to SEK 7,985 mil lion (3,891). The quar ter in clud ed a con struc tion con tract for New Bodø Air port in Nor way now that the project has shift ed from the de vel op ment phase to the im ple men ta tion phase. The cus tomer is Avi nor and the con tract is worth NOK 3.3 bil lion.

January – June 2024

Net sales and profit

April – June 2024

Ac tiv i ty in busi ness area Civil En gi neer ing con tin ued to be high dur ing the sec ond quar ter and net sales in creased by ten per cent to SEK 4,278 mil lion (3,891). Op er - at ing prof it in creased and amount ed to SEK 165 mil lion (152) and the op er at ing mar gin was un changed at 3.9 per cent (3.9).

January – June 2024

Ac tiv i ty was high in busi ness area Civil En gi neer ing dur ing the first half- year. Pub - lic in vest ments in the form of in vest ments in in fra struc ture and waste water fa cil i - ties, as well as the on go ing cli mate tran si tion, have had a pos i tive im pact. Net sales in creased by nine per cent to SEK 7,836 mil lion (7,219). Even ad just ed for di - vest ed op er a tions and ex change rate ef fects, net sales in creased by nine per cent.

The level of or ders re ceived dur ing the first half- year was high and amount ed to SEK 16,173 mil lion (8,333). The pe ri od in clud ed Västlänkenʼs Haga- Rosenlund stage in Gothen burg worth around SEK 1.5 bil lion, a new dock in Skellefteå worth about SEK 1.1 bil lion, op er a tion and main te nance con tracts for about SEK 1.1 bil - lion and New Bodø Air port worth NOK 3.3 bil lion.

Order back log on June 30, 2024 in creased and amount ed to SEK 22,296 mil lion (15,075). Roads and other in fra struc ture make up the largest por tion of the order back log with 44 per cent (37).

Net sales

per product, rolling 12 months

per geographic market, rolling 12 months

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----- Start of picture text -----

Operation and maintenance, 19% (18)
Energy, 6% (6)
Streets and groundwork, 36% (34)
Ports and sea, 9% (6)
Industrial, 4% (7)
Roads and other infrastructure, 26% (29)
----- End of picture text -----

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----- Start of picture text -----

Sweden, 89% (90)
Norway, 11% (10)
----- End of picture text -----

Order backlog, June 30, 2024

per product

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per project size

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----- Start of picture text -----

MSEK
10,000
Operation and maintenance, 20% (25)
Energy, 5% (8) 8,000
Streets and groundwork, 18% (23) 6,000
Ports and sea, 11% (3) 4,000
Industrial, 2% (4)
2,000
Roads and other infrastructure, 44% (37)
0
< 200 MSEK, 34% (56) 201 – 500 MSEK, 21% (22)
501 – 1,000 MSEK, 13% (11) >1,000 MSEK, 32% (11)
----- End of picture text -----

Key ratios

Key ratios
	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Net sales, MSEK Operating profit, MSEK Operating margin, % Orders received, MSEK Order backlog, MSEK Operating cash flow, MSEK Average number of employees	4,278 3,891 165 152 3.9 3.9 7,985 3,891 22,296 15,075 194 -83 3,301 3,322	7,836 7,219 242 211 3.1 2.9 16,173 8,333 22,296 15,075 493 57 3,208 3,308	15,781 15,164 532 501 3.4 3.3 22,930 15,090 22,296 13,905 1,134 698 3,295 3,356

12

Business area Industry

Busi ness area In dus try pro vides the prod ucts and ser vices need ed to carry out more sus tain able and cost- ef fi cient con struc tion and civil en gi neer ing projects on the Nordic mar ket. With local roots we work with both ex ter nal and in ter nal cus tomers.

Busi ness area In dus try of fers every thing from min er al ag gre gates, con crete, paving and tem po rary elec tric i ty to pre fab ri cat ed con crete el e ments and frame as sem bly. In dus try also as sists with crane and ma chine rental, dis tri b u tion of binder to the con crete in dus try, trans porta tion as well as re cy cles residue from the con struc tion and civil en gi neer ing in dus try. The busi ness area is run in six prod uct areas; min er al ag gre gates, paving, con crete, trans porta tion and ma - chines, rentals and con struc tion sys tem.

Op er at ing prof it im proved and amount ed to SEK -30 mil lion (-102). The op er at ing mar gin was -0.4 per cent (-1.3). Op er at ing prof it im proved in paving, which has a clear sea son al pat tern where the sea son starts in the sec ond quar ter, while both pre fab op er a tions and rental op er a tions re port ed lower op er at ing prof it as a re - sult of the weak er hous ing mar ket. The op er at ing mar gin for the lat est rolling 12 month pe ri od im proved to 5.1 per cent com pared to 4.8 per cent for the full year 2023.

Cap i tal em ployed at the end of the pe ri od con tract ed and was SEK 11,339 mil lion com pared to SEK 11,885 mil lion at the end of same pe ri od last year. The de crease is due to a lower in vest ment rate and an im prove ment in work ing cap i tal.

Orders received and order backlog

Net sales and profit

Busi ness area In dus try has a very clear sea son al pat tern where the first quar ter is char ac ter ized by sub stan tial deficits since the paving sea son be gins in the sec ond quar ter.

April – June 2024

Net sales dur ing the sec ond quar ter 2024 in creased by 13 per cent and amount ed to SEK 6,033 mil lion (5,347). The in crease in net sales is pri mar i ly due to paving. Op er at ing prof it in creased and amount ed to SEK 449 mil lion (333) and the op er - at ing mar gin im proved to 7.4 per cent (6.2). The op er at ing prof it in paving im - proved com pared to the sec ond quar ter of 2023 while both pre fab op er a tions and rental op er a tions were af fect ed by the weak hous ing mar ket and re port ed lower op er at ing prof it.

April – June 2024

The level of or ders re ceived dur ing the sec ond quar ter in creased and amount ed to SEK 4,495 mil lion (3,159). The in crease is main ly re lat ed to paving con tracts, par tic u lar ly in Fin land.

January – June 2024

The level of or ders re ceived dur ing the first half- year in creased and amount ed to SEK 7,427 mil lion (5,848). The in crease is main ly re lat ed to paving con tracts, par - tic u lar ly in Fin land. Order back log per June 30, 2024 was SEK 6,798 mil lion (6,077).

January – June 2024

Net sales dur ing the first half- year 2024 in creased by four per cent and amount ed to SEK 8,444 mil lion (8,126). The in crease is pri mar i ly due to paving. Both pre fab op er a tions and rental op er a tions have been af fect ed by the weak hous ing mar ket and re port ed a lower level of ac tiv i ty com pared to the first half of last year.

Net sales

per product area, rolling 12 months

per geographic market, rolling 12 months

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Paving, 51% (49)
Concrete, 10% (13) Sweden, 59% (62)
Mineral Aggregates, 14% (13) Norway, 8% (9)
Transportation and Machines, 9% (8) Finland, 27% (24)
Rentals, 9% (10) Denmark, 6% (5)
Construction System, 7% (7)
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Key ratios

Key ratios
		Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
		2024	2023	2024	2023	2023/2024	2023
Net sales, MSEK		6,033	5,347	8,444	8,126	20,280	19,962
Operating profit, MSEK		449	333	-30	-102	1,034	962
Operating margin, %		7.4	6.2	-0.4	-1.3	5.1	4.8
Orders received, MSEK		4,495	3,159	7,427	5,848	12,765	11,186
Order backlog, MSEK		6,798	6,077	6,798	6,077	6,798	3,954
Capital employed at the end of the period, MSEK		11,339	11,885	11,339	11,885	11,339	10,699
Operating cash flow, MSEK		-41	-603	-577	-993	1,428	1,012
Average number of employees		4,411	4,480	3,987	4,149	4,424	4,485
Concrete, thousands of m 3 1)		243	314	430	577	957	1,104
Paving, thousands of tons 1)		2,004	1,606	2,115	1,726	5,900	5,511
Mineral Aggregates, thousands of tons	1)	8,131	6,519	12,557	10,749	26,592	24,784

1) Refers to sold vol ume

13

Business area Project Development

Busi ness area Project De vel op ment, which com pris es Hous ing De vel op - ment and Prop er ty De vel op ment, de vel ops sus tain able and vi brant urban en vi ron ments with res i den tial, com mer cial and pub lic prop er ty.

The busi ness area is re spon si ble for the Groupʼs prop er ty ac qui si tions and di - vesti tures as well as project de vel op ment which gen er ates con tract work for the other busi ness areas. Project De vel op ment works through whol ly owned com pa nies or in col lab o ra tion with other part ners in joint ven tures.

Hous ing De vel op ment of fers a broad range of hous ing forms in clud ing apart - ment build ings with tenant- owner apart ments, con do mini ums and apart - ments for rent.

Prop er ty De vel op ment de vel ops of fice build ings, premis es and some times en tire city bor oughs in col lab o ra tion with mu nic i pal i ties and other part ners. Op er a tions are pri mar i ly con cen trat ed to the big city areas through out the Nordic re gion.

Net sales and profit

April – June 2024

Net sales in Project De vel op ment con tract ed by 54 per cent in the sec ond quar ter and amount ed to SEK 720 mil lion (1,569). The de crease is due to the con tin ued weak de mand for hous ing through out the Nordic re gion, which has af fect ed ac tiv i ty in Hous ing De vel op ment. Op er at ing prof it amount ed to SEK -33 mil lion (114) with an op er at ing mar gin of -4.6 per cent (7.3).

January – June 2024

Capital employed

velopment Capital employed
MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Operations property Investment property Project and development property of which housing development rights of which commercial development rights of which unsold part of ongoing housing projects of which ongoing rental projects of which ongoing commercial projects of which completed property of which other Participation in joint ventures Loans to joint ventures Working capital and other	41 138 146 36 36 36 15,524 14,499 14,603 8,714 7,642 7,981 1,011 830 901 2,003 2,758 2,461 1,066 1,502 1,712 761 323 489 869 399 165 1,100 1,045 894 2,407 2,660 2,820 1,433 1,484 1,498 -1,033 -1,466 -1,010
Total	18,408 17,351 18,093
of which Property Development of which Housing Development	4,703 4,952 5,034 13,705 12,399 13,059

Net sales in Project De vel op ment con tract ed dur ing the first half- year and amount ed to SEK 1,775 mil lion (3,410). The de crease is at trib ut able to Hous - ing De vel op ment. Op er at ing prof it amount ed to SEK 213 mil lion (241) with an op er at ing mar gin of 12.0 per cent (7.1).

Cap i tal em ployed in Project De vel op ment at the end of the pe ri od amount ed to SEK 18,408 mil lion (17,351). The in crease is pri mar i ly due to in vest ments in hous ing de vel op ment rights.

Key ratios

Key ratios
	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
	2024	2023	2024	2023	2023/2024	2023
Net sales, MSEK	720	1,569	1,775	3,410	4,087	5,722
of which Property Development	21	65	44	74	504	534
of which Housing Development	699	1,504	1,731	3,336	3,583	5,188
Operating profit, MSEK	-33	114	213	241	276	304
_of which Property_Development	21	29	282	23	366	107
of which Housing Development	-54	85	-69	218	-90	197
Operating margin, %	-4.6	7.3	12.0	7.1	6.8	5.3
of which Property Development	100.0	44.6	640.9	31.1	72.6	20.0
of which Housing Development	-7.7	5.7	-4.0	6.5	-2.5	3.8
Capital employed at the end of the period, MSEK	18,408	17,351	18,408	17,351	18,408	18,093
Orders received, MSEK	13	60	640	203	573	136
Order backlog, MSEK	1,213	3,080	1,213	3,080	1,213	1,620
Operating cash flow, MSEK	-107	-861	44	-1,369	-841	-2,254
Average number of employees	161	232	171	240	189	222

14

Falling in fla tion and ex pec ta tions of lower in ter est rate lev els in the fu ture cre ate bet ter con di tions for pro duc tion starts of homes, even though re cov ery will take time. As far as Peab is con cerned, we have a well- di men sioned de vel op ment rights port fo lio in at trac tive lo ca tions and while we wait for the mar ket to re cov er we are fur ther de vel op ing and prepar ing projects for the fu ture.

Housing Development

April – June 2024

Net sales de creased dur ing the quar ter and amount ed to SEK 699 mil lion (1,504). The de cline is ev i dent in all the coun tries we op er ate in. Op er at ing prof it amount - ed to SEK -54 mil lion (85) and the op er at ing mar gin was -7.7 per cent (5.7). The neg a tive op er at ing prof it is due to the fact that there have been no pro duc tion starts dur ing the quar ter and that there are few hous ing projects in on go ing pro - duc tion.

Cap i tal em ployed in creased at the end of the pe ri od and amount ed to SEK 13,705 mil lion (12,399). The in crease is main ly due to in vest ments in de vel op ment rights.

De mand for newly pro duced homes with a long time be fore oc cu pan cy re mains low and we did not start any new hous ing projects dur ing the sec ond quar ter. Pro duc tion start ed on 185 homes in rental apart ment projects on our own bal - ance sheet in the cor re spond ing quar ter last year. The num ber of sold homes was 136 (206), all of which were tenant- owner apart ments/con do mini ums. Of a total of 206 homes sold in the sec ond quar ter 2023, 87 were tenant- owner apart - ments/con do mini ums and 119 were homes in rental apart ment projects.

In De cem ber 2023 Peab signed a con tract to ac quire Folk samʼs shares in Sick laön Bygg In vest AB that part ly and whol ly owns de vel op ment rights in Kvarn hol men in Nacka. The ac qui si tion was con clud ed in Jan u ary 2024 and Peab there by in - creased its own er ship from 50 to 100 per cent. Peab has de vel oped homes on Kvarn hol men since 2013. Sick laön Bygg In vest AB has more than 270 zon ing ap - proved, whol ly owned de vel op ment rights for a gross area of 26,000 m2. In ad di - tion, the com pa ny owns 50 per cent of the shares in Kvarn hol men Utveck ling AB that has an on go ing zon ing process for more than 120,000 m2 hous ing de vel op - ment rights. Half of them will be turned over to Peab.

January – June 2024

The con tin ued weak de mand on the hous ing mar ket through out the Nordic re - gion is clear ly no tice able in Hous ing De vel op ment. Net sales de creased and amount ed to SEK 1,731 mil lion (3,336). Op er at ing prof it amount ed to SEK -69 mil - lion (218) and the op er at ing mar gin was -4.0 per cent (6.5). The op er at ing mar gin for the lat est rolling 12 month pe ri od was -2.5 per cent com pared to 3.8 per cent for the full year 2023.

Net sales

per geographic market, rolling 12 months

Sales of our own hous ing de vel op ments re main at low lev els but on a pos i tive note we are sell ing at a steady pace and have noted some in creased in ter est at the be gin ning of the year, main ly in Swe denʼs major cities. Dur ing the pe ri od we start ed up three hous ing projects; one in Swe den, one in Nor way and one in Fin - land. The total num ber of pro duc tion start- ups of our own de vel oped homes was 137 (483) dur ing the pe ri od. All of these 137 (81) were tenant- owned apart - ments/con do mini ums. Dur ing the cor re spond ing pe ri od last year there were also pro duc tion start- ups of 402 homes in rental apart ment projects on our own bal - ance sheet. The total num ber of sold homes was 441 (451), of which 302 (188) were tenant- owner apart ments/con do mini ums and 139 (263) were homes in rental apart ments projects. The total num ber of homes in pro duc tion was 2,366 (4,665), of which 1,504 (3,392) were tenant- owner apart ments/con do mini - ums and 862 (1,273) were homes in rental apart ment projects. The por tion of sold tenant- owner apart ments/con do mini ums in on go ing pro duc tion was 61 per cent (67). The num ber of re pur chased homes per June 30, 2024 was 266 (266) and they were main ly in Fin land. There is a sub stan tial un der ly ing need for homes through out the Nordic re gion but high er in ter est rates and the high cost of con - struc tion make it hard er to make sound cal cu la tions. We see con tin ued in ter est in our own hous ing de vel op ments but in ter est rate hikes and con cern about the econ o my in gen er al make it dif fi cult to as sess fu ture de vel op ments, es pe cial ly in projects with a long time be fore oc cu pan cy.

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Sweden, 72% (71) Norway, 7% (9) Finland, 21% (20)

Development rights for housing

		Jun 30	Jun 30	Dec 31
	Number, approx. Development rights on our own balance sheet Development rights via joint ventures	2024 21,800 4,000	2023 21,700 4,600	2023 22,000 4,700
	Development rights via options etc.	6,900	8,500	7,400
	Total	32,700	34,800	34,100

Own housing development construction

Own housing development construction	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Tenant- owner associations, ownership and residential limited companies Number of production-started homes during the period Number of sold homes during the period Total number of homes under production, at the end of the period Portion of sold homes under production, at the end of the period Number of repurchased homes on our balance sheet, at the end of the period Rentals Number of production-started homes during the period Number of sold homes during the period Number converted to tenant-owner associations during the period Total number of homes under production, at the end of the period Number of homes completed, at the end of the period	– – 136 87 1,504 3,392 61% 67% 266 266 – 185 – 119 – – 862 1,273 306 –	137 81 302 188 1,504 3,392 61% 67% 266 266 – 402 139 263 – 45 862 1,273 306 – 1) 3) 3)	177 121 656 542 1,504 2,392 61% 68% 266 252 204 606 268 392 40 85 862 1,302 306 – 2)

1) In cludes 45 homes that have been con vert ed from rentals

2) In cludes 85 homes that have been con vert ed from rentals

3) Of which 116 (603), re spec tive ly 13 per cent (47), are under con tract to be sold upon com ple tion

Time of completion of our own ongoing housing development projects

Number of homes

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800
600
400
200
0
Q3 – 24 Q4 – 24 Q1 – 25 Q2 – 25 Q3 – 25 Q4 – 25 Q2 – 26 Q1 – 27
Sweden [1)] Norway [ 1)] Finland [1)] Rental properties
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1) Refers to Swedish tenant- owner as so ci a tions and sin gle homes, Nor we gian con do mini ums and share hous ing and Finnish res i den tial lim it ed com pa nies

15

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Groundbreaking ceremony, Brf Havtornet
Tjörn
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Property development

Net sales and op er at ing prof it from op er a tions are de rived from ac qui si tions, de - vel op ment, run ning and man ag ing whol ly owned prop er ty, shares in the re sult from part ly owned com pa nies as well as cap i tal gains/loss es from the di vesti ture of com plet ed prop er ty and shares in part ly owned com pa nies.

April – June 2024

Dur ing the sec ond quar ter 2024 net sales were SEK 21 mil lion (65) and op er at ing prof it was SEK 21 mil lion (29). Cap i tal gains from prop er ty di vesti tures amount ed to SEK 17 mil lion (7) in total. Among other things, an of fice build ing in Jönköping was di vest ed in the quar ter. Prof it con tri bu tions from part ly owned com pa nies amount ed to SEK 15 mil lion com pared to SEK 33 mil lion in the same quar ter last year.

At the end of the sec ond quar ter 2024 the cap i tal em ployed in Prop er ty De vel op - ment was SEK 4,703 mil lion (4,952). A large part of the cap i tal em ployed is shares in part ly owned com pa nies and loans to part ly owned com pa nies.

In De cem ber 2023 Peab signed a con tract to di vest its 33.3 per cent own er ship in Tor net Bostad spro duk tion to the two other own ers, Folk sam and Fastighets AB Balder. Peab has been a part owner in Tor net Bostad spro duk tion since 2009. The com pa ny owns and man ages around 2,200 rental apart ments and has some 650 rental apart ments in pro duc tion in a num ber of cities in Swe den. The deal was closed in Jan u ary 2024, en tail ing cap i tal gains of SEK 220 mil lion.

The table below presents cur rent prop er ty projects per June 30, 2024. The lo gis - tics prop er ty in Södertälje has been di vest ed to an ex ter nal party and is ex pect ed to be hand ed over dur ing the fourth quar ter 2024.

January – June 2024

Dur ing the first half- year 2024 net sales were SEK 44 mil lion (74) and op er at ing prof it was SEK 282 mil lion (23). Cap i tal gains from prop er ty di vesti tures amount - ed to SEK 275 mil lion (8) in total, of which the di vesti ture of the shares in Tor net Bostad spro duk tion con tributed by SEK 220 mil lion. Prof it con tri bu tions from part ly owned com pa nies amount ed to SEK 34 mil lion com pared to SEK 43 mil lion in the same pe ri od last year.

Current property projects

		Rentable		Recognized	Adopted	Completion time	Completion
Type of project	Location	area in m 2	Degree rented, %	value, MSEK	investment, MSEK	point	level, %
Office building	Gothenburg	12,900	23	489	568	Q3-2024	86
Logistic facility	Södertälje	23,900	−	253	379	Q4-2024	67
Others				19
Total				761

16

Significant joint ventures

Peabʼs sig nif i cant joint ven ture com pa nies Fastighets AB Cen tur, Fastighets AB ML4, Point Hyl lie Hold ing AB and Skiab In vest AB are de vel op ing well and via them Peab has built up con sid er able in di rect hold ings in in vest ment prop er ty and de vel op ment prop er ty for both com mer cial and res i den tial pur pos es. Reg u lar re turns are in the form of shares in the prof it from joint ven tures rec og nized in op er at ing prof it and in ter est in come on lend ing. Changes in mar ket val ues that af fect booked val ues in the joint ven ture com pa nies are not in clud ed in Peabʼs ac counts.

Fastighets AB Centur

Own, man age and de vel op com mer cial prop er ty and hous ing.

Peabʼs share: 50 per cent Part ner: Balder Ge og ra phy: Stock holm, the Mälardalen re gion, Gothen burg and the Öre sund re gion Rec og nized value on prop er ties June 30, 2024 : 1) SEK 8,148 mil lion (7,957) Peabʼs por tion of un rec og nized fair value ex clu sive tax :1) SEK 555 mil lion (626) Major on go ing projects: No major on go ing projects

Fastighets AB ML4

Own and man age the re search fa cil i ty Max IV. The fa cil i ty is rent ed to Lund Uni ver si ty.

Peabʼs share: 50 per cent Part ner: Wihlborgs Ge og ra phy: Lund Rec og nized value on prop er ties June 30, 2024: SEK 1,868 mil lion (1,918) Major on go ing projects: No major on go ing projects

Point Hyllie Holding AB

De vel op, own and man age the of fice prop er ty The Point as well as own and man age the hotel prop er ty Värd shuset 5 (Op er a tor Qual i ty Hotel View).

Peabʼs share: 50 per cent Part ner: Voli to Ge og ra phy: Hyl lie, Malmö Rec og nized value on prop er ties June 30, 2024: SEK 1,361 mil lion (1,396) Major on go ing projects: No major on go ing projects

Skiab Invest AB

De vel op, own and man age com mer cial prop er ty and hous ing in the Scan di na vian moun tains.

Peabʼs share: 50 per cent Part ner: SkiStar Ge og ra phy: Scan di na vian moun tains Rec og nized value on prop er ties June 30, 2024 :1) SEK 2,184 mil lion (2,304) Peabʼs por tion of un rec og nized fair value ex clu sive tax : 1) SEK 52 mil lion (69) Major on go ing projects: No major on go ing projects

1) Val ued at mar ket price in joint ven ture com pa nies. The point in time when mar ket val u a tions take place can dif fer be tween the com pa nies. Mar ket prices on prop er ties that af fect the rec og nized val ues in the joint ven ture com pa nies are not in clud ed in Peabʼs ac counts.

17

Construction market

Sweden

Growth is ex pect ed to be lim it ed to 0.5 per cent in 2024. The cost of liv ing is high and un em ploy ment is ex pect ed to in crease sig nif i cant ly this year, which will curb con sump tion. Hous ing con struc tion, halved in 2023, will most like ly con tin ue to con tract in 2024 be fore the trend turns in 2025. The tempo of in ter est rate cuts has a se ri ous im pact on de vel op ments in hous ing in vest ments. Both pri vate and pub lic premise con struc tion will prob a bly di min ish this year as well due to the chal lenges fac ing gov ern ment bud gets and weak in vest ment sig nals from the ser - vice sec tor and com merce. The down turn is ex pect ed to level off in 2025. In dus - tryʼs build ing con struc tion in vest ments are ex pect ed to grow by a few per cent per year in 2024 and 2025. Civil en gi neer ing con struc tion, which in creased in 2023, is ex pect ed to level out in 2024 fol lowed by an up turn in 2025.

Housing

Housing
	2024	2025	2026
Sweden
Norway
Finland

Fore cast for production- started hous ing in vest ments, new pro duc tion and ren o va tions Source: Navet

Other building construction

Norway

Growth in the main land econ o my is ex pect ed to land just under one per cent in 2024, fol lowed by an up turn in 2025. In fla tion and high in ter est rates are hav ing a neg a tive im pact. How ev er, a rel a tive ly weak Nor we gian krone is con tribut ing to a pos i tive trade bal ance. Do mes tic con sump tion is under pres sure from the neg a - tive de vel op ment in real wages and high er home loan costs. Hous ing con struc - tion, which dropped dra mat i cal ly in 2023, is ex pect ed to con tract slight ly this year fol lowed by growth in 2025. Growth is ex pect ed in other build ing con struc - tion in 2024, dri ven by in dus try and the pub lic sec tor and that trend ap pears to con tin ue into 2025. The total vol ume in build ing con struc tion in vest ments in di - cates growth in 2024 and 2025. Civil en gi neer ing con struc tion is be lieved to have in creased in 2023 and it looks like this pos i tive de vel op ment will con tin ue in 2024 but then level out in 2025.

Finland

Finnish econ o my is ex pect ed to grow by a half per cent in 2024. Growth is chal - lenged by the con tin u ing de cline in hous ing con struc tion and a ser vice sec tor suf - fer ing from house holds on re strict ed bud gets. Ac tiv i ty is held back by ris ing un - em ploy ment and high in ter est rates. Growth in the econ o my will prob a bly come in 2025 and land at just over 1.5 per cent. Hous ing con struc tion de clined dra mat i - cal ly in 2023 and this neg a tive trend is ex pect ed to con tin ue in 2024 be fore it turns in 2025. Other build ing con struc tion is ex pect ed to de vel op neg a tive ly dur - ing 2024 re gard ing both in dus try as well as in vest ments in premis es by the pri - vate and pub lic sec tors. The trend is some what more pos i tive in 2025 when the de cline is ex pect ed to level out. Civil en gi neer ing is ex pect ed to de crease in 2024 fol lowed by an up swing in 2025.

	2024	2025	2026
Sweden
Norway
Finland

Fore cast for production- started other build ing con struc tion in vest ments, new pro duc tion and ren o va tions (In dus try, of fice/re tail etc. and pub lic premis es)

Source: Navet

Civil engineering

	2024	2025	2026
Sweden			–
Norway			–
Finland			–

Fore cast for civil en gi neer ing in vest ments

Source: Navet

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Same forecast compared to the previous quarterly report Better forecast compared to the previous quarterly report Worse forecast compared to the previous quarterly report

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Paving shared private road
Yt ter by
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18

Non-financial targets and sustainability

Every day Peab con tributes to sus tain able so cial de vel op ment and works to im - prove every day life for peo ple in their local com mu ni ties. We do this by build ing every thing from homes, schools and hos pi tals to bridges, roads and other in fra - struc ture. Work ing sus tain ably is a strate gic mat ter for Peab that pri mar i ly takes place lo cal ly, con nect ed to every day life based on our core val ues, busi ness con - cept, mis sion, strate gic tar gets and Code of Con duct.

We mon i tor our busi ness based on nine ex ter nal tar gets – both fi nan cial and nonfinancial – that also iden ti fy our ma te r i al sus tain able as pects. These are found in the strate gic tar gets Best work place and Leader in so cial re spon si bil i ty. We re port the tar gets quar ter ly, semi- annually or an nu al ly. In this re port we present our two fi nan cial tar gets for the op er at ing mar gin and net debt ratio as well as the tar get for the out come of se ri ous ac ci dents and at trac tive em ploy er (eNPS).

Most satisfied customers

It is im per a tive for a long- term, sus tain able re la tion ship that Peab de liv er on its oblig a tions to cus tomers. A sat is fied cus tomer is a cus tomer that comes back and is vital to mar ket ing our com pa ny. This is why our an nu al cus tomer sur vey is an im por tant mea sure of how well we are meet ing our cus tomersʼ ex pec ta tions while also in di cat ing where there is room for im prove ment. Our lat est Cus tomer Sat is fac tion Index (CSI) score for 2023 re mained at 80 (80), which is a con tin ued good re sult and high er than our tar get of 75. Cus tomersʼ per cep tion of Peabʼs price wor thi ness and plan ning abil i ty were the areas where scores in creased the most. Re gard ing our busi ness areas, Con struc tion and Civil En gi neer ing in creased their CSI scores.

The next tar get up date will take place after the fourth quar ter in con nec tion with the pre sen ta tion of the year- end re port 2024.

Best workplace

Peabʼs busi ness is found ed on a strong cor po rate cul ture. We are lo cat ed in large and small towns all over the Nordic re gion. Em ploy ees can make a dif fer ence by build ing the local com mu ni ty in the places where they live and work. Every em - ploy ee has a great deal of per son al re spon si bil i ty, and should be met by both good work ing con di tions and de vel op ment op por tu ni ties as well as safe and in - clu sive work places.

Serious accidents

A safe work en vi ron ment is the foun da tion of our busi ness. Every one at our work - places should be able to be there under safe and se cure con di tions, de spite the fact that there are risks in volved in the work we do. Peab there fore has a vi sion of zero work place ac ci dents. To pre vent ac ci dents and in ci dents at our work places, we de vel op quality- assured work meth ods and train our em ploy ees. The focus is on pre ven tive work and re me di a tion of re port ed in ci dents and risk ob ser va tions. This in volves plan ning and risk as sess ment in the projects, learn ing from re port - ed risk ob ser va tions and from in ves ti ga tions of in ci dents and ac ci dents.

In order to ap proach our vi sion of zero work place ac ci dents, we have a tar get of a de creas ing trend in se ri ous ac ci dents* that in cludes every one at our work places. Dur ing the sec ond quar ter of the year there were 8 se ri ous ac ci dents, of which 6 in volved our own em ploy ees and 2 in volved sub con trac tors. Cal cu lat ed on a rolling 12 month basis, the num ber was 44 per June 30, 2024 (48 per De cem ber, 2023), of which 26 per tained to own per son nel and 18 to sub con trac tors. We note a slight in crease in the num ber of se ri ous ac ci dents among our own em ploy ees com pared to the pre vi ous quar ter. We con tin ue with un abat ed in ten si ty to focus on pre ven tive work en vi ron ment to re duce the num ber of ac ci dents.

We also mon i tor the num ber of work place ac ci dents with more than four days ab sence, ex clud ing the day of in jury (LTI4), and work place ac ci dents ac cord ing to the same de f i n i tion per one mil lion hours worked (LTIF4) for our own em ploy ees. Dur ing the sec ond quar ter of the year the num ber of LTI4 was 33 (32 first quar ter 2024) and the LTIF4 fre quen cy rate on a rolling 12 month basis was 5.7 (5.4 after the first quar ter 2024).

Attractive employers (eNPS)

We should be the best work place in the in dus try and there by the ob vi ous choice of em ploy er. Twice a year we hold our per son nel sur vey The Hand shake so that we can con tin u ous ly de vel op and im prove as co- workers and teams. The ques - tions in The Hand shake main ly con cern pro duc tiv i ty, the teamʼs sus tain abil i ty and if em ploy ees are will ing to rec om mend Peab as an em ploy er to friends and ac quain tances (eNPS). The lat ter is also one of our nine ex ter nal tar gets that we re port twice a year and should be above the bench mark for the in dus try (in dus try and man u fac tur ing).

In the spring sur vey the eNPS score in creased by a point to 27 from the au tumn sur vey which was 26. This is well over the Nordic bench mark in the seg ment in - dus try and man u fac tur ing, which is 20 (19 in the au tumn sur vey). The most sig nif - i cant pos i tive change was among skilled work ers in our Finnish op er a tions. Par - tic i pa tion in the spring sur vey was the high est ever at 89.9 per cent (87.3 per cent in the au tumn sur vey). This shows how very en gaged our em ploy ees are.

The next tar get up date will take place after the fourth quar ter in con nec tion with the pre sen ta tion of the year- end re port 2024.

The total num ber of em ploy ees per June 30, 2024 was 14,068 (15,490). The av er - age num ber of em ploy ees* on a rolling 12 month basis amount ed to 13,318 com - pared to 13,808 for the full year 2023.

* For a de f i n i tion see sec tion Al ter na tive per for mance mea sures and de f i n i tions.

Leader in social responsibility

Climate target for carbon dioxide intensity

As the Nordic Com mu ni ty Builder we have a big re spon si bil i ty for re duc ing the con sid er able cli mate im pact of the con struc tion and civil en gi neer ing in dus try at the rate re quired by the Paris Agree ment. Peab im pacts the en vi ron ment and the cli mate through our own op er a tions and the im pact our sup pli ers and cus tomers have. Op er a tions pri mar i ly cause emis sions of green house gases by using var i ous ma te ri als in pro duc tion like con crete, steel and as phalt. Two other major sources of car bon emis sions in pro duc tion are en er gy con sump tion and trans porta tion. There fore our pri or i tized, emis sion re duc tion ac tiv i ties can be found with in the frame work of these areas. As com mu ni ty builders we also have a com pre hen sive per spec tive on our cli mate work and strive to con tribute to a sus tain able so ci ety on the whole by build ing, for ex am ple, solar power plants and rail roads or by build ing in such a way that peo ple can live more sus tain ably. We have a life cycle per spec tive in our op er a tions and take re spon si bil i ty for both mak ing and meet - ing de mands in our value chain. We have an ad van tage in that we can sup ply our con struc tion con tract op er a tions and the projects we de vel op our selves with input goods and raw ma te r i al through busi ness area In dus try, which aug ments our abil i ty to ac tive ly steer to wards lower car bon emis sions.

In 2045 Peab will be cli mate neu tral. Our tar gets by 2030 are to re duce car bon diox ide in ten si ty by at least 60 per cent in our own op er a tions (Scope 1 and 2) and for input goods and pur chased ser vices (Scope 3) by at least 50 per cent com - pared to base year 2015. The out come after 2023 re vealed that de vel op ments are going in the right di rec tion al though to dif fer ent de grees. Car bon diox ide in ten si - ty in our own pro duc tion has gone down by 49 per cent com pared to base year 2015 and by 9 per cent for input goods and pur chased ser vices. This means that we are well on the road to con vert ing the pro duc tion we our selves have con trol over but the greater chal lenge is when we are de pen dent on other par ties for a re - duc tion in our car bon foot print. It is there fore vital that we con tin ue to make ex - plic it and strin gent de mands as well as point out choic es that are bet ter for the cli mate in order to re duce emis sions. We work ac tive ly to in crease the com plete - ness of our mea sure ments of car bon diox ide in ten si ty, which is par tic u lar ly de - mand ing in Scope 3 re port ing.

The next tar get up date will take place after the fourth quar ter in con nec tion with the pre sen ta tion of the year- end re port 2024.

Equal opportunity

Only about five per cent of those that grad u ate with, for Peab, de grees in rel e vant, prac ti cal ed u ca tion are women. This means that the con struc tion and civil en gi - neer ing in dus try has a major role to play in tak ing ad van tage of all the com pe - tence so ci ety has to offer. As one of the largest Nordic com mu ni ty builders we have a re spon si bil i ty to nudge the en tire in dus try for ward. Our tar get ini tial ly is there fore to strive for the per cent age of women re cruit ed to Peab for our core skills to al ways be high er than the per cent age of women who have grad u at ed with, for us, rel e vant de grees on the ed u ca tion mar kets. We are fo cused on core skills in pro duc tion (skilled work ers) as well as in pro duc tion man age ment and pro duc tion sup port (white- collar work ers).

At the end of 2023 the per cent age of women in new re cruit ments was 14.2 per - cent in pro duc tion and pro cess ing com pared to our tar get of more than 5.0 per - cent. For 2024 we have raised our tar get to 6.0 per cent. New re cruit ment in pro - duc tion man age ment and pro duc tion sup port dropped to 18.8 per cent where as our tar get is at least 30.0 per cent. The rea son be hind the re duc tion was the few re cruit ments dur ing the year be cause of the cur rent mar ket sit u a tion.

The next tar get up date will take place after the fourth quar ter in con nec tion with the pre sen ta tion of the year- end re port 2024.

19

Activities during the second quarter

• Peab became the first civil engineering company to use piles produced with SSAB Zero, a material based on recycled scrap steel and produced with fossil free electricity and biogas. This choice of material reduces carbon emissions by around 80 percent compared to the same piles manufactured with traditional steel. The piles are part of the construction of a new dock Peab is building at the Port of Skellefteå that will contribute to developing the port by enabling it to handle more and larger transportation.

• Byggelementʼs new prefab factory in Hallstahammar was inaugurated. Here cost-efficient and large scale, climate improved production of slabs and walls with at least 50 percent less cement takes place. Products in ECO 50, i,e. ECO-Prefab with at least 50 percent alternative binder, are standard in this factory.

• Byggelement continued development of more climate improved elements by launching solid walls in ECO 60. Solid walls are one of the products Byggelement sells the most of, and now their carbon emission have been significantly reduced.

• Residents in Borås moved into Peabʼs 50th Swan ecolabelled own developed apartment building. Peab began Swan ecolabelling its own developed apartment buildings in 2017 to provide customers with a third

• party certification that their home and the building they move into meets stringent environmental demands on everything from the building material to lower energy consumption in the building.

• Swerock took another step in electrification of its fleet of vehicles by adding two new electric trucks to its operations in Gothenburg and Skåne. This reduces noise levels and greenhouse gas emissions. The trucks will transport rental lifts and be charged at night but can also be fast charged as needed during the day.

• Lambertsson Kran invested in a 50 ton mobile crane where the crane is run on electricity. It is the first of its kind in Sweden and yet another step in electrifying the companyʼs fleet of vehicles. The motor used to move the crane runs on HVO and the hydraulic system uses bio oil.

• Peab completed the comprehensive mapping of its impact on biodiversity and presented the basis for a road map to identify and prioritize systematic measures to protect and strengthen biodiversity.

• The Peab Group carried out its annual Safety Day with the theme ”Team Above All”. This is a shared work environment activity aimed at getting all employees to think about how they can contribute to health and safety in the workplace.

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Asphalt pump truck
Markaryd
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20

Summary external targets

In order to fur ther pro mote value cre ation Peab up dat ed its tar gets as of 2021 – every thing from our mis sion, busi ness con cept and strate gic tar get areas to in ter nal and ex ter nal fi nan cial and non- fi nan cial tar gets. We re port the per for mance of our busi ness by mon i tor ing nine ex ter nal tar gets, of which three are fi nan cial and based on seg ment re port ing and six are non- fi nan cial tar gets. We con sid er the ex ter nal tar gets par tic u lar ly im por tant and they are a sub set of our in ter nal tar gets and ac tion plans. At the be gin ning of 2024, Peab com mu ni cat ed that all nine tar gets will re main un changed for the pe ri od 2024 – 2026.

Both the in ter nal and ex ter nal fi nan cial and non- fi nan cial tar gets are cat e go rized under the strate gic tar gets: Most sat is fied cus tomers, Best work place, Most prof itable com pa ny and Leader in so cial re spon si bil i ty. All tar gets re late to the in dus try. For a more de tailed de scrip tion of each tar get please see www.peab.com/tar gets.

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Most satisfied customers

>75

We are close to our cus tomers and meet their needs with sus tain able of fers. Qual i ty per me ates our work meth ods and end re sults. The right ex per tise in CSI al ways over 75 the right place is key to suc cess.

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Best workplace

We are a safe, se cure and in clu sive work place root ed in a strong com pa ny cul ture. Lead er ship takes re spon si bil i ty and is close to op er a tions. Em ploy - ees have value- cre at ing and de vel op ing work as sign ments that they com - plete to geth er.

eNPS always over benchmark

Zero Vision serious accidents Through a con tract ing trend

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Most profitable company

We take on the right projects and have the right busi ness mix. Em ploy ees work ac cord ing to quality- en sured work meth ods that are ef fi cient in every as pect. Through our own re sources and in ter nal col lab o ra tion we main tain a high de gree of value cre ation. We take ad van tage of our size and ex pe ri - ence.

>6% Operating margin

0.3–0.7 Net debt/equity ratio

Dividend >50% of profit for the year

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Leader in social responsibility

As the Nordic Com mu ni ty Builder we drive de vel op ments in our in dus try in mat ters con cern ing the cli mate and en vi ron ment, ethics, and equal op por - tu ni ty and in clu sion. We work well to geth er with stake hold ers in the world around us and stride every day to wards a sus tain able value chain. With our ex ten sive local pres ence we are also an im por tant actor in the local com - mu ni ty.

-60% Carbon dioxide intensity Re duc tion of emis sions from our own pro duc tion by 2030 (Scope 1+2).

-50% Carbon dioxide intensity Re duc tion of emis sions from input goods and pur chased ser vices by 2030 (Scope 3).

Equal opportunity recruitment Share of women re cruit ed al ways over the ed u ca tion mar ket

21

Most prof itable com pa ny

Target and target fulfilment

Most prof itable com pa ny

Net debt/equity ratio

Operating margin

Tar get: 0.3-0.7 ac cord ing to seg ment re port ing (re port ed quar ter ly)

Tar get: >6% ac cord ing to seg ment re port ing (re port ed quar ter ly)

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% Multiple
8 1.0
6.2
6 4.4 4.8 4.9 4.7 5.2 4.3 0.8 0.6 0.6 0.6
4 4.5 3.2 2.5 0.6 0.5
2 2.5 0.4 0.3 0.3
0.2 0.2
0 0.2 0.1
-2 0.0
Operating margin Target Net debt/equity ratio Target
2016 2017 2018 20192020 2021 202220232024 2016 2017 2018* 2019 2020 2021 2022 20232024
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• Years 2016- 2018 not trans lat ed ac cord ing to changed ac count ing prin ci ples for own hous ing de vel op ment projects. Op er at ing mar - gin 4.5 % excl. the ef fect of the dis tri b u tion of An nehem Fastigheter (SEK 952 mil lion). *** Op er at ing mar gin 2.5 % excl. Mall of Scan di - navia (SEK 400 mil lion). ** Cal cu lat ed on rolling 12 months per June 30, 2024.

• Years 2016- 2018 not trans lat ed ac cord ing to changed ac count ing prin ci ples for own hous ing de vel op ment projects.** Per June 30, 2024.

Best work place

Best work place

Serious accidents

eNPS

Tar get: > over bench mark (re port ed semi an nu al ly)

Tar get: Zero fatal ac ci dents and con tract ing trend, rolling 12 months, se ri ous ac ci dents clas si fi ca tion 4 (re port ed quar ter ly)

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No
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eNPS

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70 40
60 54
5040 32 30 30 28 34 48 48 [49] 43 40 48 43 [44] 3020 18 18 24 28 20 2922 27 21 26 19 27 20
30 15
20 10 8 10
10
0 0
Jan- Jan- Jan- Jan-
21 22 23 24
Own personnel Subcontractors
Total eNPS Benchmark
2019 Q42020 Q42021 Q42022 Q22022 Q42023 Q22023 Q42024 Q2
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eNPS stands for em ploy ee Net Pro mot er Score and mea sures em ploy ee en gage ment. The score can vary be tween -100 and 100.

Leader in so cial re spon si bil i ty

Leader in so cial re spon si bil i ty

Carbon dioxide intensity: Climate targets for our own production

Carbon dioxide intensity: Climate targets for input goods and purchased services

Tar get: Re duced emis sions of GHG Scope 1+2* (tons CO2e/MSEK) by 60% until 2030 (re port ed an nu al ly)

Tar get: Re duced emis sions of GHG Scope 3* (tons CO2e/MSEK) by 50% until 2030 (re port ed an nu al ly)

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%
120
100
80
60
40
20
0
Target Current level, -9% per 231231
In cludes con crete/ce ment, as phalt/bi tu men, trans porta tion and
ma chine ser vices, steel, waste and busi ness trips.
2015 2017 2019 2021 2023 2025 2027 2029
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%

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120
100
80
60
40
20
0
Target Current level, -49% per 231231
2015 2017 2019 2021 2023 2025 2027 2029
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• Di rect and in di rect emis sions as a re sult of using fuel and en er gy in our own pro duc tion.

Most prof itable com pa ny

Dividend

Tar get: >50% of prof it for the year ac cord ing to seg ment re - port ing (re port ed an nu al ly)

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%
97
100
80
67
60 61 58 59 59 56
40 30
20
0
Dividend Target
2016 2017 2018 2019 2020 2021 2022 2023
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• Years 2016- 2018 not trans lat ed ac cord ing to changed ac count ing prin ci ples. ** For 2019, no cash div i dend has been paid. The value of the dis tri b u tion of An nehem Fastigheter at the time of the dis tri b - u tion in De cem ber 2020 amount ed to 97 per cent of the prof it for the year 2019. *** The pro por tion is calu lat ed with out the ef fect of SEK 952 mil lion on prof it due to the dis tri b u tion of An nehem Fastigheter.

Most sat is fied cus tomers

Customer Satisfaction Index (CSI)

Tar get: > 75 (re port ed an nu al ly)

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CSI
85
81
80 80 80
80
78
75 75
75
73
70
Customer Satisfaction Index (CSI)
Target
2016 2017 2018 2019 2020 2021 2022 2023
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CSI stands for Cus tomer Sat is fac tion Index and mea sures how sat is fied Peabʼs cus tomers are. CSI is a weight ed mea sure - ment be tween 0 and 100.

Leader in so cial re spon si bil i ty

Equal opportunity recruitment

Tar get: Share of women re cruit ed > the ed u ca tion mar ket (re port ed an nu al ly)

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Production management and production support
(white-collar workers), %
60.0
50.0 45.0 45.3
40.0 34.9
30.0
18.8
20.0
10.0
Dec-20 Dec-21 Dec-22 Dec-23
Actual Target
Production and processing (skilled workers), %
15.0
14.2
10.0 8.3 6.8 7.9
5.0
0.0
Dec-20 Dec-21 Dec-22 Dec-23
Actual Target
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22

Risks and uncertainty factors

Peabʼs busi ness is ex posed both to op er a tive and fi nan cial risks as well as com pli - ance risks and ex ter nal and mar ket risks. How much risks af fect Peabʼs prof its and po si tion de pends on how well the com pa ny han dles daily op er a tions. Ex ter nal and mar ket risks are events that are out of Peabʼs con trol but which af fect the busi ness en vi ron ment. These are, for ex am ple, de vel op ments in the econ o my, cus tomer be hav ior, cli mate im pact and po lit i cal de ci sions.

Man ag ing op er a tive risks is a con tin u ous process con sid er ing the large num ber of projects the Group is al ways start ing up, car ry ing out and com plet ing. Op er a tive risks are man aged in the line or ga ni za tion in the busi ness areas through es tab - lished pro ce dures, process es and con trol sys tems. Peabʼs busi ness is large ly project- related. There are a num ber of dif fer ent con tract forms where risk lev els vary de pend ing on the type of con tract. How ev er, with any type of con tract am bi - gu i ties can arise con cern ing the terms, which can lead to de lim i ta tion is sues that cre ate a dis pute with the cus tomer.

A de ci sion in the case be tween Peab and Unibail- Rodamco-Westfield re gard ing the con tract for Mall of Scan di navia in Solna was hand ed down in Peabʼs favor on June 30, 2023. In Au gust Unibail- Rodamco-Westfield pe ti tioned the Swedish Court of Ap peal to set aside the judg ment in its en tire ty in a so- called protest ac - tion. After a thor ough legal trial through ar bi tra tion last ing near ly seven years Peab can not see any grounds for a protest ac tion. In the fur ther process Peab will counter the protest ac tion. Dur ing the process the ar bi tra tion judge ment is sus - pend ed and there by un en force able, which de fers the time of pay ment. For de - tails see the An nu al and Sus tain abil i ty Re port 2023.

Fi nan cial risks are pri mar i ly as so ci at ed with the com pa nyʼs need for cap i tal, tiedup cap i tal and ac cess to fi nanc ing. Fi nan cial risks are man aged on Group level.

In re cent years there has been a sig nif i cant rise in the price of ma te ri als and en er - gy. How ev er, dur ing the past year we have no ticed that ma te r i al prices have stag - nat ed and there has even been a slight de cline in prices, main ly re gard ing en er gy. We fol low de vel op ments care ful ly and con tin u al ly work to adapt and stream line pro duc tion all the while ex pect ing con tin ued high con struc tion costs. High con - struc tion costs and in ter est rates make it hard er for cal cu la tions to come out ahead, which damp ens de mand on the con struc tion mar ket through out the Nordic re gion.

Cen tral banks have raised their pol i cy rates sev er al times over the last years and in ter est rates are ex pect ed to re main high, even though in ter est rates have begun to come down. Con tin ued high in ter est rates can re duce in vest ment ap petite and di min ish de mand.

Since Rus sia in vad ed Ukraine in Feb ru ary 2022 the glob al sit u a tion has changed dra mat i cal ly. In ad di tion to the ter ri ble tragedy for the peo ple the war touch es, the sit u a tion risks fur ther ham per ing macro eco nom ic growth in the world. The con struc tion in dus try is af fect ed through greater un cer tain ty and cau tious ness con cern ing in vest ments and con tin ued high ma te r i al and en er gy prices. Peab is not di rect ly ex posed to Rus sia, Ukraine or Be larus but may be in di rect ly af fect ed through ma te r i al sup pli ers. We fol low de vel op ments care ful ly to con tin u al ly as - sess any ef fects on Peab.

For fur ther in for ma tion about risks and un cer tain ty fac tors, see the An nu al and Sus tain abil i ty Re port 2023.

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Port of Skellefteå
Skellefteå
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23

Other information

Significant events during the period

Peab reiterated its external targets at Capital Markets Day

In con nec tion with Peabʼs Cap i tal Mar kets Day in Feb ru ary 2024 Peab com mu ni - cat ed that the nine ex ter nal tar gets adopt ed in 2021 are still rel e vant and there - fore re main un changed. The tar gets are both fi nan cial and non- financial and are cat e go rized under the strate gic tar gets; Most sat is fied cus tomers in the in dus try, Most prof itable com pa ny in the in dus try, Best work place in the in dus try and Leader in so cial re spon si bil i ty in the in dus try. Peabʼs Pres i dent and CEO Jes per Görans son and the rest of Peabʼs ex ec u tive man age ment pre sent ed an up date on Peabʼs busi ness sit u a tion and strate gic focus going for ward. At the same time Peab also re port ed a po ten tial level of or ders re ceived of about SEK 19 bil lion in total over the next two years due to more pre lim i nary agree ments, so- called phase 1 con tracts, in con struc tion con tract op er a tions.

Performance share program and transfer of own shares

The AGM on May 6, 2024 re solved to ap prove the Boardʼs pro pos al of Per for - mance Share Pro gram 2024 and trans fer of a max i mum of 2,785,324 B shares. The pur pose of the Per for mance Share Pro gram is to tie key em ploy eesʼ re wards clos - er to the com pa nyʼs long- term earn ings and value de vel op ment.

Green bond issue

On June 13, 2024 Peab is sued bonds for a total value of SEK 1,500 mil lion. The bonds ma ture in 3 re spec tive ly 4.5 years. With a ma tu ri ty of 3 years SEK 900 mil - lion were is sued with a vari able in ter est rate of 3 months Sti bor (the Stock holm

In ter bank Of fered Rate) plus 2.30 per cent age points. With a ma tu ri ty of 4.5 years SEK 600 mil lion were is sued with a vari able in ter est rate of 3 months Sti bor plus 2.70 per cent age points. Funds from the issue will be used to fi nance in vest ments in green build ings, en er gy ECO ef fi cient and cir cu lar prod ucts and pro duc tion process es, clean trans porta tion as well as water and pol lu tion man age ment. The green bonds were is sued with in the frame work of Peabʼs Swedish MTN pro gram and the newly up dat ed Green Fi nance Frame work.

Significant events after the period

No sig nif i cant events oc curred after the end of the re port ing pe ri od.

Holdings of own shares

At the be gin ning of 2024 Peabʼs hold ing of its own shares was 8,597,984 B shares which cor re sponds to 2.9 per cent of the total num ber of shares. No changes have oc curred dur ing the first half- year 2024.

Related parties

The char ac ter and ex tent of trans ac tions with re lat ed par ties is pre sent ed in the An nu al and Sus tain able Re port 2023, note 41. For more in for ma tion about trans - ac tions with re lat ed par ties dur ing the pe ri od see busi ness area Project De vel op - ment. No other new sig nif i cant trans ac tions have oc curred dur ing the first halfyear 2024.

==> picture [538 x 474] intentionally omitted <==

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E6 Stenungsund
Ste nung sund
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24

Report on the Group income statement, IFRS

Group net sales ac cord ing to IFRS amount ed dur ing the first half- year 2024 to SEK 28,378 mil lion (29,076). After ad just ments for di vest ed units and ex change rate ef fects net sales de creased by two per cent. The ad just ment of our own hous ing de vel op ment projects to the com ple tion method af fect ed net sales by SEK 2,005 mil lion (630).

Op er at ing prof it ac cord ing to IFRS for the first half- year 2024 amount ed to SEK 802 mil lion (1,204) and the op er at ing mar gin was 2.8 per cent (4.1). The ad just ment of our own hous ing de vel op ment projects to the com ple tion method af fect ed op er at ing prof it by SEK 275 mil lion (251).

MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Net sales Production costs	16,928 16,098 -15,281 -14,141	28,378 29,076 -26,289 -26,279	60,902 61,600 -56,193 -56,183
Gross profit	1,647 1,957	2,089 2,797	4,709 5,417
Sales and administrative expenses Other operating income Other operating costs	-885 -867 60 124 -8 -17	-1,644 -1,721 389 166 -32 -38	-3,087 -3,164 580 357 -18 -24
Operating profit	814 1,197	802 1,204	2,184 2,586
Financial income Financial expenses	59 431 -167 -125	127 467 -322 -213	244 584 -693 -584
Net finance	-108 306	-195 254	-449 0
Pre-tax profit Tax	706 1,503 -110 -315	607 1,458 -67 -305	1,735 2,586 -360 -598
Profit for the period	596 1,188	540 1,153	1,375 1,988
Profit for the period, attributable to: Shareholders in parent company Non-controlling interests	596 1,189 0 -1	539 1,154 1 -1	1,373 1,988 2 0
Profit for the period	596 1,188	540 1,153	1,375 1,988
Key ratios, IFRS Earnings per share before and after dilution, SEK Average number of outstanding shares, million Return on capital employed, % Return on equity, % 1) 1)	2.08 4.13 287.5 287.5 7.3 10.4 9.5 17.8	1.88 4.01 287.5 287.5 7.3 10.4 9.5 17.8	4.79 6.92 287.5 287.5 7.3 9.1 9.5 14.1

1) Cal cu lat ed on rolling 12 months

25

Report on the Group income statement and other comprehensive income in summary, IFRS

summary, IFRS
MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Profit for the period	596 1,188	540 1,153	1,375 1,988
Other comprehensive income Items that can be reclassified or have been reclassified to profit for the period Translation differences for the period from translation of foreign operations Changes in fair value of cash flow hedges for the period Shares in joint venturesʼ other comprehensive income Tax referring to items that can be reclassified or have been reclassified to profit for the period	8 82 1 9 -1 -3 0 -1	62 -16 14 6 -1 -1 -3 -1	-67 -145 26 18 -4 -4 -6 -4
Other comprehensive income for the period	8 87	72 -12	-51 -135
Total comprehensive income for the period	604 1,275	612 1,141	1,324 1,853
Total comprehensive income for the period, attributable to: Shareholders in parent company Non-controlling interests	604 1,275 0 0	611 1,142 1 -1	1,323 1,854 1 -1
Total comprehensive income for the period	604 1,275	612 1,141	1,324 1,853

26

Report on financial position for the Group in summary, IFRS

Total as sets on June 30, 2024 were SEK 50,372 mil lion (53,297). Eq ui ty amount ed to SEK 14,666 mil lion (13,780), which gen er at ed an eq ui ty/as sets ratio of 29.1 per cent (25.9). Dur ing the sec ond quar ter, a div i dend of SEK 431 mil lion (1,150) was paid to the share hold ers.

MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Assets Intangible assets Tangible assets Investment property Interest-bearing long-term receivables Other financial fixed assets Deferred tax recoverables	3,792 4,035 3,789 8,090 8,457 8,333 59 61 61 1,467 1,255 1,293 2,328 2,654 2,857 80 160 97
Total fixed assets	15,816 16,622 16,430
Project and development properties Inventories Interest-bearing current receivables Other current receivables Liquid funds	17,616 19,375 18,061 2,086 2,073 1,705 1,185 297 1,345 12,179 13,563 10,392 1,490 1,367 1,243
Total current assets	34,556 36,675 32,746
Total assets	50,372 53,297 49,176
Equity and liabilities Equity Liabilities Interest-bearing long-term liabilities Interest-bearing long-term liabilities, project financing Deferred tax liabilities Other long-term liabilities	14,666 13,780 14,470 8,227 8,573 7,046 14 71 193 631 668 623 1,751 1,343 2,005
Total long-term liabilities	10,623 10,655 9,867
Interest-bearing current liabilities Interest-bearing current liabilities, project financing Other current liabilities	4,744 4,677 4,246 4,311 9,341 6,933 16,028 14,844 13,660
Total current liabilities	25,083 28,862 24,839
Total liabilities	35,706 39,517 34,706
Total equity and liabilities	50,372 53,297 49,176
Key ratios, IFRS Capital employed Equity/assets ratio, % Net debt Equity per share, SEK Number of outstanding shares at the end of the period, million	31,962 36,442 32,888 29.1 25.9 29.4 13,154 19,743 14,537 50.93 47.88 50.28 287.5 287.5 287.5

27

Report on changes in Group equity in summary, IFRS

MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Equity attributable to shareholders in parent company Opening equity on January 1 Profit for the period Other comprehensive income for the period	14,453 13,768 13,768 539 1,154 1,988 72 -12 -134
Total comprehensive income for the period	611 1,142 1,854
Cash flow hedge transferred to cost of inventory Tax on cash flow hedge Share-based payments settled with equity instruments Cash dividend	0 4 -24 0 -1 5 6 – – -431 -1,150 -1,150
Closing equity	14,639 13,763 14,453
Non-controlling interests Opening equity on January 1 Comprehensive income for the period New issues	17 18 18 1 -1 -1 9 – –
Closing equity	27 17 17
Total closing equity	14,666 13,780 14,470

28

Report on Group cash flow in summary, IFRS

MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Cash flow from current operations before changes in working capital Increase (-) / Decrease (+) of project and development properties Increase (-) / Decrease (+) of inventories Increase (-) / Decrease (+) of current receivables / current liabilities	1,057 736 1,478 -56 114 2 -221 -1,620	739 821 720 -230 -354 -470 648 -1,031	3,203 3,285 1,812 862 -36 -152 1,600 -79
Cash flow from changes in working capital	1,371 -1,674	1,014 -1,731	3,376 631
Cash flow from current operations	2,428 -938	1,753 -910	6,579 3,916
Sale of subsidiaries / businesses, net effect on liquid funds Acquisition of fixed assets Sale of fixed assets	– – -337 -538 180 103	28 – -668 -894 1,139 252	78 50 -1,494 -1,720 1,296 409
Cash flow from investment operations	-157 -435	499 -642	-120 -1,261
Cash flow before financing	2,271 -1,373	2,252 -1,552	6,459 2,655
Shareholder contribution non-controlling interests Increase (+) / Decrease (-) of interest-bearing liabilities Increase (+) / Decrease (-) of interest-bearing liabilities, project financing Cash dividend	– – 1,273 2,814 -2,652 -639 -431 -1,150	2 – 1,235 3,439 -2,818 -882 -431 -1,150	2 – -866 1,338 -5,045 -3,109 -431 -1,150
Cash flow from financing operations	-1,810 1,025	-2,012 1,407	-6,340 -2,921
Cash flow for the period	461 -348	240 -145	119 -266
Cash at the beginning of the period Exchange rate differences in cash	1,023 1,707 6 8	1,243 1,506 7 6	1,367 1,506 4 3
Cash at the end of the period	1,490 1,367	1,490 1,367	1,490 1,243

29

Parent company

The par ent com pa ny Peab ABʼs net sales for the first half- year 2024 amount ed to SEK 428 mil lion (144) and main ly con sist ed of in ter nal Group ser vices. Prof it for the pe - ri od amount ed to SEK 968 mil lion (3,053). The pe ri odʼs re sults in clud ed div i dends from sub sidiaries of SEK 990 mil lion (3,165).

The par ent com pa nyʼs as sets main ly con sist of par tic i pa tions in Group com pa nies amount ing to SEK 10,433 mil lion (11,749). The as sets have been fi nanced from eq ui ty of SEK 12,352 mil lion (10,655). In the pre vi ous year there were long- term li a bil i ties to Group com pa nies amount ing to SEK 1,100 mil lion. Dur ing the sec ond quar ter, a div i dend of SEK 431 mil lion (1,150) was paid to the share hold ers. Dur ing the sec ond quar ter, the par ent com pa ny re port ed share- based pay ments of SEK 6 mil lion. For fur ther in for ma tion on share- based pay ments, see Sig nif i cant events dur ing the re port ing pe ri od.

As of Feb ru ary 1, 2024 Peabʼs Swedish sup port func tions are run in Peab AB. The change has been im ple ment ed through a so- called busi ness tran si tion, which means that all em ploy ees in Peab Sup port AB (Shared Ser vice Cen tre) and Peab Utveck ling AB have been of fered a trans fer of em ploy ment to Peab AB.

The par ent com pa ny is in di rect ly af fect ed by the risks de scribed in the sec tion Risks and un cer tain ty fac tors.

Report on the parent company income statement in summary

MSEK	Apr-Jun 2024 Apr-Jun 2023	Jan-Jun 2024 Jan-Jun 2023	Jul-Jun 2023/2024 Jan-Dec 2023
Net sales Administrative expenses Other operating income	249 72 -314 -130 0 0	428 144 -543 -259 1 1	551 267 -778 -494 3 3
Operating profit	-65 -58	-114 -114	-224 -224
Result from financial investments Profit from participation in Group companies Other financial items	990 3,165 44 -7	990 3,165 87 -26	1,135 3,310 136 23
Result after financial items	969 3,100	963 3,025	1,047 3,109
Appropriations	– –	– –	1,367 1,367
Pre-tax profit	969 3,100	963 3,025	2,414 4,476
Tax	4 12	5 28	-292 -269
Profit for the period 1)	973 3,112	968 3,053	2,122 4,207

1) Profit/loss for the period corresponds to comprehensive profit/loss for the period and therefore only one income statement is presented and no separate one for comprehensive profit/loss

30

Report on financial position for the parent company in summary

Report on financial position for the parent company in	summary
MSEK	Jun 30 2024 Jun 30 2023 Dec 31 2023
Assets Fixed assets Intangible assets Tangible assets Financial assets Participation in Group companies Receivables from Group companies Deferred tax recoverables	344 3 2 40 2 2 10,433 11,749 10,433 6 – – 86 96 83
Total financial assets	10,525 11,845 10,516
Total fixed assets	10,909 11,850 10,520
Current assets Current receivables Accounts receivables Receivables from Group companies Current tax assets Other receivables Prepaid expenses and accrued income	1 – 0 4,430 3,159 4,940 102 112 – 2 56 57 92 8 13
Total current receivables	4,627 3,335 5,010
Cash and bank	0 0 0
Total current assets	4,627 3,335 5,010
Total assets	15,536 15,185 15,530
Equity and liabilities Equity Restricted equity Non-restricted equity	1,884 1,884 1,884 10,468 8,771 9,925
Total equity	12,352 10,655 11,809
Untaxed reserves Provisions Other provisions	2,919 3,292 2,919 45 44 43
Total provisions	45 44 43
Long-term liabilities Liabilities to Group companies	– 1,100 –
Total long-term liabilities	– 1,100 –
Current liabilities Accounts payable Liabilities to Group companies Current tax liabilities Other liabilities Accrued expenses and deferred income	55 10 19 3 2 645 – – 21 31 14 8 131 68 66
Total current liabilities	220 94 759
Total liabilities	220 1,194 759
Total equity and liabilities	15,536 15,185 15,530

31

Note 1 – Accounting principles

The quar ter ly re port has been pre pared ac cord ing to the IFRS stan dards that have been adopt ed by EU as well as the in ter pre ta tions of the valid stan dards adopt ed by EU, IFRICs. This re port for the Group has been pre pared ac cord ing to IAS 34, In ter im fi nan cial re port ing as well as ap plic a ble reg u la tions in the An nu al Ac counts Act. The par ent com pa ny quar ter ly re port has been pre pared ac cord ing to chap ter 9 in the An nu al Ac counts Act, Quar ter ly re ports and RFR 2, Ac count ing rules for legal en ti ties. The Group and par ent com pa ny have ap plied the same ac count ing prin ci ples and con di tions as in the lat est An nu al and Sus tain abil i ty Re port.

In ad di tion to the fi nan cial re ports and their ac com pa ny ing notes fur ther in for ma tion ac cord ing to IAS 34.16A can be found in other sec tions of the quar ter ly re port.

Differences in segment reporting and reporting according to IFRS

The Group is re port ed in the four busi ness areas Con struc tion, Civil En gi neer ing, In dus try and Project De vel op ment. The busi ness areas are also op er at ing seg ments. Seg ment re port ing is the model Peab be lieves best de scribes Peabʼs busi ness re gard ing both in ter nal steer ing and risk pro file, and it is also how the Board and ex ec u - tive man age ment mon i tor op er a tions.

For Peabʼs con struc tion con tract busi ness es, Con struc tion and Civil En gi neer ing, rev enue and prof it are rec og nized over time in both seg ment re port ing and re port ing ac cord ing to IFRS. For busi ness area In dus try rev enue and prof it are rec og nized both over time and at a cer tain point in time, and re port ing is the same in both seg ment re port ing and re port ing ac cord ing to IFRS. For busi ness area Project De vel op ment in seg ment re port ing with in the unit Hous ing De vel op ment rev enue and ex pens es are rec og nized over time as the projects are suc ces sive ly com plet ed. This ap plies to Swedish tenant- owner as so ci a tions and own sin gle homes, Nor we gian con do mini ums and share hous ing and Finnish res i den tial lim it ed com pa nies. In re port ing ac cord ing to IFRS, hous ing projects are rec og nized when the final home buy ers take pos ses - sion of their apart ments. In busi ness area Project De vel op ment and the unit Prop er ty De vel op ment rev enue and prof it are rec og nized at a cer tain point in time in both seg ment re port ing and re port ing ac cord ing to IFRS.

Group func tions are re port ed in ad di tion to the busi ness areas and con sist of cen tral com pa nies, cer tain sub sidiaries and other hold ings. Cen tral com pa nies con sist pri - mar i ly of the par ent com pa ny Peab AB and Peab Fi nans AB. There is no dif fer ence in seg ment re port ing and re port ing ac cord ing to IFRS re gard ing Group func tions.

In seg ment re port ing leas ing fees for the lessee are rec og nized lin ear ly over the leas ing pe ri od for leas ing con tracts that by the coun ter par ty (lessor) are clas si fied as op - er a tional leas ing con tracts. IFRS 16 Leas es is ap plied in the con sol i dat ed ac counts ac cord ing to IFRS which en tails that the lessee rec og nizes de pre ci a tion and in ter est at trib ut able to leas ing as sets re spec tive ly leas ing li a bil i ties. Leas ing con tracts that by the coun ter par ty (lessor) are clas si fied as fi nan cial leas ing con tracts are rec og - nized in Peabʼs seg ment ac count ing ac cord ing to the prin ci ples that cor re spond with those for the lessee ac cord ing to IFRS 16.

Reporting on internal projects between business areas Construction and Project Development

Busi ness area Con struc tion rec og nizes rev enue and prof it re fer ring to the con struc tion con tract part of our own hous ing de vel op ments, rental project de vel op ments and other prop er ty de vel op ment projects for busi ness area Project De vel op ment. Recog ni tion takes place over time as the projects are com plet ed. Busi ness area Project De vel op ment rec og nizes rev enue for both the con struc tion con tract and de vel op er part of our own hous ing de vel op ment projects. Rec og nized prof it con sists of the prof it in the de vel op er part over time. In ter nal net sales be tween busi ness area Con struc tion and busi ness area Project De vel op ment re gard ing the con struc tion cost of our own hous ing de vel op ment projects are elim i nat ed in con sol i dat ed re port ing. In ter nal prof it is re turned when the project is di vest ed.

Reporting on property projects on our own balance sheet

The un der ly ing sales value of prop er ty projects on our own bal ance sheet, rec og nized as project and de vel op ment prop er ty, that are sold in the form of a com pa ny via shares, is rec og nized as rev enue and the book value on the bal ance sheet is rec og nized as an ex pense. When prop er ty projects rec og nized as op er a tions prop er ty or in - vest ment prop er ty are di vest ed the net ef fect on prof it is rec og nized as other op er at ing in come or other op er at ing cost. Recog ni tion of prop er ty projects is the same in both seg ment re port ing and re port ing ac cord ing to IFRS.

Financial key ratios in segment reporting

Fi nan cial key ra tios such as cap i tal em ployed, total as sets, eq ui ty, eq ui ty/as sets ratio, net debt, net debt/eq ui ty ratio, cash flow be fore fi nanc ing and earn ings per share are pre sent ed in seg ment re port ing with con sid er a tion taken to the above pre req ui sites. Net debt in seg ment re port ing in cludes project fi nanc ing for the un sold por tion of on go ing own hous ing de vel op ment projects. This is be cause Peab has an oblig a tion to ac quire un sold homes six months after com ple tion.

32

Note 2 – Revenue allocation

Group Jan-Jun 2024 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group Segment	Differences in accounting principles 1)	Group IFRS
Allocation per external/internal External sales Internal sales
	10,706	7,270	6,610	1,760	27		26,373	2,005	28,378
	1,440	566	1,834	15	647	-4,502	–		–
Total	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378
Allocation per country Sweden Norway Finland Denmark Other
	9,548	7,006	5,326	1,305	539	-4,101	19,623	1,390	21,013
	1,458	830	533	200	66	-263	2,824	450	3,274
	1,140		2,016	270	69	-138	3,357	165	3,522
			566				566		566
			3				3		3
Total	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378
Allocation per type of customer Public sector Private customers Internal customers
	6,255	5,781	2,364	5	22		14,427		14,427
	4,451	1,489	4,246	1,755	5		11,946	2,005	13,951
	1,440	566	1,834	15	647	-4,502	–		–
Total	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378
Allocation per point in time At one point in time Over time Rent revenue 2)
	29	7	2,856	665	27	-541	3,043	3,172	6,215
	12,109	7,821	4,573	1,052	534	-3,163	22,926	-1,167	21,759
	8	8	1,015	58	113	-798	404		404
Total	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378
Allocation per type of revenue Construction contracts Sales of goods Sales of property projects Transportation services Administrative services Rent revenue Other 2)
	12,109	7,821	4,573	1,052	20	-2,650	22,925	-1,167	21,758
			2,224			-384	1,840		1,840
				652			652	3,172	3,824
			573			-137	436		436
					514	-513	1		1
	8	8	1,015	58	113	-798	404		404
	29	7	59	13	27	-20	115		115
Total	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378

1) Refers to dif fer ences in ac count ing prin ci ples re gard ing our own hous ing de vel op ment projects. In seg ment re port ing rev enue is rec og nized over time while in re port ing ac cord ing to IFRS it is at the time of pos ses sion.

2) Rent rev enue is rec og nized ac cord ing to IFRS 16.

33

								Differences in
Group Jan-Jun 2023		Civil		Project	Group		Group	accounting
MSEK	Construction	Engineering	Industry	Development	functions	Eliminations	Segment	principles 1)	Group IFRS
Allocation per
external/internal
External sales	12,251	6,556	6,211	3,397	31		28,446	630	29,076
Internal sales	2,711	663	1,915	13	736	-6,038	–		–
Total	14,962	7,219	8,126	3,410	767	-6,038	28,446	630	29,076
Allocation per country
Sweden	10,645	6,607	5,564	2,557	596	-5,050	20,919	124	21,043
Norway	2,370	611	504	311	84	-365	3,515	-169	3,346
Finland	1,947	1	1,568	542	86	-622	3,522	675	4,197
Denmark			485		1	-1	485		485
Other			5				5		5
Total	14,962	7,219	8,126	3,410	767	-6,038	28,446	630	29,076
Allocation per type of
customer
Public sector	5,912	5,225	1,647	23	23		12,830	-17	12,813
Private customers	6,339	1,331	4,564	3,374	8		15,616	647	16,263
Internal customers	2,711	663	1,915	13	736	-6,038	–		–
Total	14,962	7,219	8,126	3,410	767	-6,038	28,446	630	29,076
Allocation per point in
time
At one point in time	23	4	3,096	790	38	-590	3,361	3,243	6,604
Over time	14,933	7,209	3,906	2,566	624	-4,582	24,656	-2,613	22,043
Rent revenue 2)	6	6	1,124	54	105	-866	429		429
Total	14,962	7,219	8,126	3,410	767	-6,038	28,446	630	29,076
Allocation per type of
revenue
Construction contracts	14,933	7,209	3,906	2,566	45	-4,004	24,655	-2,613	22,042
Sales of goods			2,427			-425	2,002		2,002
Sales of property projects				782			782	3,243	4,025
Transportation services			591			-134	457		457
Administrative services					579	-578	1		1
Rent revenue 2)	6	6	1,124	54	105	-866	429		429
Other	23	4	78	8	38	-31	120		120
Total	14,962	7,219	8,126	3,410	767	-6,038	28,446	630	29,076

1) Refers to dif fer ences in ac count ing prin ci ples re gard ing our own hous ing de vel op ment projects. In seg ment re port ing rev enue is rec og nized over time while in re port ing ac cord ing to IFRS it is at the time of pos ses sion.

2) Rent rev enue is rec og nized ac cord ing to IFRS 16.

34

								Differences in
Group Jan-Dec 2023		Civil		Project	Group		Group	accounting
MSEK	Construction	Engineering	Industry	Development	functions	Eliminations	Segment	principles 1)	Group IFRS
Allocation per
external/internal
External sales	23,195	13,786	16,086	5,695	59		58,821	2,779	61,600
Internal sales	4,585	1,378	3,876	27	1,428	-11,294	–		–
Total	27,780	15,164	19,962	5,722	1,487	-11,294	58,821	2,779	61,600
Allocation per country
Sweden	20,250	13,692	12,272	4,331	1,169	-9,633	42,081	857	42,938
Norway	4,236	1,472	1,588	357	159	-749	7,063	261	7,324
Finland	3,294		4,934	1,034	158	-910	8,510	1,661	10,171
Denmark			1,145		1	-2	1,144		1,144
Other			23				23		23
Total	27,780	15,164	19,962	5,722	1,487	-11,294	58,821	2,779	61,600
Allocation per type of
customer
Public sector	12,047	10,847	5,475	47	47		28,463	-32	28,431
Private customers	11,148	2,939	10,611	5,648	12		30,358	2,811	33,169
Internal customers	4,585	1,378	3,876	27	1,428	-11,294	–		–
Total	27,780	15,164	19,962	5,722	1,487	-11,294	58,821	2,779	61,600
Allocation per point in
time
At one point in time	51	20	6,387	1,785	84	-1,129	7,198	6,807	14,005
Over time	27,717	15,131	11,392	3,820	1,193	-8,490	50,763	-4,028	46,735
Rent revenue 2)	12	13	2,183	117	210	-1,675	860		860
Total	27,780	15,164	19,962	5,722	1,487	-11,294	58,821	2,779	61,600
Allocation per type of
revenue
Construction contracts	27,717	15,131	11,392	3,820	77	-7,374	50,763	-4,028	46,735
Sales of goods			5,036			-790	4,246		4,246
Sales of property projects				1,743			1,743	6,807	8,550
Transportation services			1,205			-273	932		932
Administrative services					1,116	-1,116	–		–
Rent revenue 2)	12	13	2,183	117	210	-1,675	860		860
Other	51	20	146	42	84	-66	277		277
Total	27,780	15,164	19,962	5,722	1,487	-11,294	58,821	2,779	61,600

1) Refers to dif fer ences in ac count ing prin ci ples re gard ing our own hous ing de vel op ment projects. In seg ment re port ing rev enue is rec og nized over time while in re port ing ac cord ing to IFRS it is at the time of pos ses sion.

2) Rent rev enue is rec og nized ac cord ing to IFRS 16.

35

Note 3 – Operating segment and reconciliation between segment reporting and reporting according to IFRS

Group Jan-Jun 2024 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group Segment	Differences in accounting principles 1)	Group IFRS
External sales Internal sales	10,706	7,270	6,610	1,760	27		26,373	2,005	28,378
	1,440	566	1,834	15	647	-4,502	–		–
Total revenue	12,146	7,836	8,444	1,775	674	-4,502	26,373	2,005	28,378
Operating profit	224	242	-30	213	-137	1	513	289	802
Operating margin, % Financial income Financial expenses	1.8	3.1	-0.4	12.0			1.9		2.8
							127		127
							-300	-22 2)	-322
Net finance							-173	-22	-195
Pre-tax profit Tax							340	267	607
							-42	-25	-67
Profit for the period							298	242	540
Capital employed (CB) Total assets Equity Equity/assets ratio, % Net debt Cashflow before financing	-897	-420	11,339	18,408	289 3)		28,719	3,243	31,962
							46,840	3,532 4)	50,372
							14,992	-326	14,666
							32.0		29.1
							9,585	3,569	13,154
	164 5)	493 5)	-577 5)	44 5)	-437 6)		-313	2,565	2,252

1) For more in for ma tion about the al lo ca tion of rev enue and prof it items see note 2 and the sec tion Overview busi ness areas.

• 2) Refers to IFRS 16, ad di tion al leas es SEK -22 mil lion.

• 3) Un al lo cat ed cap i tal em ployed.

4) Di vid ed be tween IFRS 16, ad di tion al leas es SEK 1,476 mil lion and hous ing projects SEK 2,056 mil lion.

5) Refers to op er at ing cash flow. For de f i n i tion, see sec tion Al ter na tive per for mance mea sures and defin tions.

• 6) Un al lo cat ed cash flow.

											Differences in
Group Jan-Jun 2023			Civil			Project	Group			Group	accounting	Group
MSEK	Construction		Engineering	Industry		Development	functions		Eliminations	Segment	principles 1)	IFRS
External sales	12,251		6,556	6,211		3,397	31			28,446	630	29,076
Internal sales	2,711		663	1,915		13	736		-6,038	–		–
Total revenue	14,962		7,219	8,126		3,410	767		-6,038	28,446	630	29,076
Operating profit	703		211	-102		241	-107		-12	934	270	1,204
Operating margin, %	4.7		2.9	-1.3		7.1				3.3		4.1
Financial income										467		467
Financial expenses										-191	-22 2)	-213
Net finance										276	-22	254
Pre-tax profit										1,210	248	1,458
Tax										-254	-51	-305
Profit for the period										956	197	1,153
Capital employed (CB)	-429		184	11,885		17,351	415	3)		29,406	7,036	36,442
Total assets										46,886	6,411 4)	53,297
Equity										14,770	-990	13,780
Equity/assets ratio, %										31.5		25.9
Net debt										11,717	8,026	19,743
Cashflow before financing	-236	5)	57 5)	-993	5)	-1,369 5)	-688	6)		-3,229	1,677	-1,552

1) For more in for ma tion about the al lo ca tion of rev enue and prof it items see note 2 and the sec tion Overview busi ness areas.

• 2) Refers to IFRS 16, ad di tion al leas es SEK -22 mil lion.

• 3) Un al lo cat ed cap i tal em ployed.

• 4) Di vid ed be tween IFRS 16, ad di tion al leas es SEK 1,450 mil lion and hous ing projects SEK 4,961 mil lion.

• 5) Refers to op er at ing cash flow. For de f i n i tion, see sec tion Al ter na tive per for mance mea sures and defin tions.

• 6) Un al lo cat ed cash flow.

36

											Differences in
Group Jan-Dec 2023			Civil			Project	Group			Group	accounting	Group
MSEK	Construction		Engineering	Industry		Development	functions		Eliminations	Segment	principles 1)	IFRS
External sales	23,195		13,786	16,086		5,695	59			58,821	2,779	61,600
Internal sales	4,585		1,378	3,876		27	1,428		-11,294	–		–
Total revenue	27,780		15,164	19,962		5,722	1,487		-11,294	58,821	2,779	61,600
Operating profit	441		501	962		304	-299		-56	1,853	733	2,586
Operating margin, %	1.6		3.3	4.8		5.3				3.2		4.2
Financial income										584		584
Financial expenses										-542	-42 2)	-584
Net finance										42	-42	0
Pre-tax profit										1,895	691	2,586
Tax										-481	-117	-598
Profit for the year										1,414	574	1,988
Capital employed (CB)	-985		-173	10,699		18,093	5	3)		27,639	5,249	32,888
Total assets										44,295	4,881 4)	49,176
Equity										15,082	-612	14,470
Equity/assets ratio, %										34.0		29.4
Net debt										8,676	5,861	14,537
Cash flow before financing	146	5)	698 5)	1,012	5)	-2,254 5)	-919	6)		-1,317	3,972	2,655

1) For more in for ma tion about the al lo ca tion of rev enue and prof it items see note 2 and the sec tion Overview busi ness areas.

2) Refers to IFRS 16, ad di tion al leas es SEK -42 mil lion.

3) Un al lo cat ed cap i tal em ployed.

4) Di vid ed be tween IFRS 16, ad di tion al leas es SEK 1,719 mil lion and hous ing projects SEK 6,072 mil lion.

5) Refers to op er at ing cash flow. For de f i n i tion, see sec tion Al ter na tive per for mance mea sures and defin tions.

6) Un al lo cat ed cash flow.

37

Note 4 – Financial assets and liabilities valued at fair value

The table below shows the al lo cat ed level for fi nan cial as sets and fi nan cial li a bil i ties rec og nized at fair value in the Groupʼs bal ance sheet. Mea sure ment of fair value is based on a three level hi er ar chy;

Level 1: prices that re flect quot ed prices on an ac tive mar ket for iden ti cal as sets. Level 2: based on di rect or in di rect in puts ob serv able to the mar ket not in clud ed in level 1. Level 3: based on in puts un ob serv able to the mar ket.

For a de scrip tion of how fair value has been cal cu lat ed see the An nu al and Sus tain abil i ty Re port 2023, note 35. The fair value of fi nan cial as sets and li a bil i ties rec og nized as their amor tized cost is es ti mat ed to be, in prin ci ple, the same as their rec og nized val ues.

Group		Jun 30, 202	4 Jun 30, 2023 Dec 31, 2023
MSEK	Level 2	Level 3	Total Level 2 Level 3 Total Level 2 Level 3 Total
Financial assets Securities held as fixed assets Of which unlisted funds Of which unlisted shareholdings and participations Other current receivables Of which commodity hedging with futures Of which currency derivatives			45 58 58 46 46 4 17 17 5 5 41 41 41 41 41 20 27 27 10 10 19 15 15 9 9 1 12 12 1 1
		45
		4
		41
	20
	19
	1
Total financial assets	20	45	65 27 58 85 10 46 56
Financial liabilities Other long-term liabilities Of which contingent consideration Other current liabilities Of which currency derivatives Of which commodity hedging with futures Of which contingent consideration			– 18 18 – – 18 18 – 17 25 25 16 6 22 1 – 3 3 16 25 25 13 13 – – 6 6
	17
	1
	16
Total financial liabilities	17	–	17 25 18 43 16 6 22

The ta bles below are a rec on cil i a tion be tween the open ing and clos ing bal ance for as sets and li a bil i ties in clud ed in level 3.

Group	Securities hel	Securities hel	d as fixed asset
	Unlisted funds		Unlisted shares and participations
MSEK	Jun 30, 2024 Jun 30, 2023 De	c 31, 2023	Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Opening balance Investments Sales Dividends received Reported in profit/loss for the period Other operating costs (+)/other operating income (-) Net finance	5 26 2 -1 -11	26 5 -26	41 41 41 -1 -1 1 1
Closing balance	4 17	5	41 41 41
Group			Contingent consideration
MSEK		Ju	n 30, 2024 Jun 30, 2023 Dec 31, 2023
Opening balance Payments during the period Reported in profit/loss for the period Other operating costs (+)/other operating income (-) Reported in other comprehensive income			6 20 20 -6 -1 -13 -1 -1
Closing balance			– 18 6

38

Future financial information

• Interim report January – September 2024

• Year-end report January – December 2024

• Annual and Sustainability Report 2024

October 25, 2024 February 6, 2025 April, 2025

Presentation of the interim report

This in ter im re port will be pre sent ed dig i tal ly and on a phone con fer ence Tues day, July 16, 2024 at 1:00 p.m. by the Pres i dent and CEO Jes per Görans son and CFO Niclas Winkvist. The pre sen ta tion will be held in Swedish and is avail able via https://www.peab.com/financial- info/.

Click on one of the links to par tic i pate in the pre sen ta tion.

Par tic i pate in the web broad cast:

https://ir.fi nan cial hear ings.com/peab- q2- report-2024

Par tic i pate via tele phone con fer ence:

https://con fer ence.fi nan cial hear ings.com/tele con fer ence/?id=50048729

For fur ther in for ma tion, please con tact:

Jes per Görans son, Pres i dent and CEO of Peab, is reached through Juha Har tomaa, Head of In vestor Re la tions Peab, +46 725 33 31 45

This in for ma tion is in for ma tion that Peab AB is oblig ed to make pub lic pur suant to the EU Mar ket Abuse Reg u la - tion and the Se cu ri ties Mar kets Act. The in for ma tion was sub mit ted for pub li ca tion, through the agency of the con tact per son set out above, at July 16, 2024, 11:00 p.m. CET.

The Board of di rec tors and the CEO pledge that the half- year re port pro vides a fair and true overview of the par ent com pa nyʼs and the Groupʼs busi ness, po si tion and re sults as well as de scribes the sig nif i cant risks and un cer tain ty fac tors faced by the par ent com pa ny and the com pa nies in clud ed in the Group.

	Förslöv July 16, 2024
Anders Runevad	Karl-Axel Granlund	Fredrik Paulsson
Chairman	Board member	Board member
Kerstin Lindell	Lars Sköld	Liselott Kilaas
Board member	Board member	Board member
Malin Persson	Magdalena Gerger	Kim Thomsen
Board member	Board member	Board member
Patrik Svensson	Maria Doberck	Jesper Göransson
Board member	Board member	CEO and President

The in for ma tion in this quar ter ly re port has not been re viewed sep a rate ly by the com pa nyʼs au di tors.

39

Quarterly data

Group, IFRS

Group, IFRS
MSEK	Apr-Jun 2024 Jan-Mar 2024 Oct-Dec 2023 Jul-Sep 2023	Apr-Jun 2023 Jan-Mar 2023 Oct-Dec 2022 Jul-Sep 2022	Apr-Jun 2022
Net sales Production costs	16,928 11,450 17,365 15,159 -15,281 -11,008 -16,139 -13,765	16,098 12,978 17,141 16,197 -14,141 -12,138 -15,466 -14,730	16,458
			-14,845
Gross profit	1,647 442 1,226 1,394	1,957 840 1,675 1,467	1,613
Sales and administrative expenses Other operating income Other operating costs	-885 -759 -843 -600 60 329 91 100 -8 -24 -3 17	-867 -854 -851 -640 124 42 72 81 -17 -21 -10 8
			-929
			94
			-3
Operating profit	814 -12 471 911	1,197 7 886 916	775
Financial income Financial expenses	59 68 61 56 -167 -155 -173 -198	431 36 39 18 -125 -88 -85 -60
			22
			-36
Net finance	-108 -87 -112 -142	306 -52 -46 -42	-14
Pre-tax profit	706 -99 359 769	1,503 -45 840 874	761
Tax	-110 43 -148 -145	-315 10 -282 -163
			-171
Profit for the period	596 -56 211 624	1,188 -35 558 711	590
Profit for the period, attributable to: Shareholders in parent company Non-controlling interests	596 -57 211 623 0 1 0 1	1,189 -35 559 711 -1 0 -1 0
			590
			0
Profit for the period	596 -56 211 624	1,188 -35 558 711	590
Key ratios, IFRS Earnings per share, SEK Average number of outstanding shares, million Capital employed (CB) Equity (CB)	2.08 -0.20 0.74 2.17 287.5 287.5 287.5 287.5 31,962 33,016 32,888 35,805 14,666 14,481 14,470 14,405	4.13 -0.12 1.93 2.43 287.5 287.5 288.0 291.3 36,442 33,831 33,590 32,230 13,780 13,652 13,786 13,250
			2.01
			294.4
			31,232
			12,736

40

Busi ness areas

Busi ness areas
MSEK	Apr-Jun 2024 Jan-Mar 2024 Oct-Dec 2023 Jul-Sep 2023	Apr-Jun 2023 Jan-Mar 2023 Oct-Dec 2022 Jul-Sep 2022	Apr-Jun 2022
Net sales Construction Civil Engineering Industry Project Development – of which Property Development – of which Housing Development Group functions Eliminations	6,358 5,788 7,029 5,789 4,278 3,558 4,454 3,491 6,033 2,411 5,056 6,780 720 1,055 1,456 856 21 23 453 7 699 1,032 1,003 849 345 329 377 343 -2,502 -2,000 -2,733 -2,523	7,540 7,422 8,330 6,306 3,891 3,328 4,405 3,584 5,347 2,779 5,658 7,096 1,569 1,841 1,986 2,234 65 9 11 304 1,504 1,832 1,975 1,930 390 377 409 380 -2,981 -3,057 -3,740 -2,915
			7,628
			3,893
			6,108
			1,977
			120
			1,857
			385
			-3,133
Group, segment reporting	15,232 11,141 15,639 14,736	15,756 12,690 17,048 16,685	16,858
Adjustment of housing to IFRS IFRS 16, additional leases	1,696 309 1,726 423	342 288 93 -488	-400
Group, IFRS	16,928 11,450 17,365 15,159	16,098 12,978 17,141 16,197	16,458
Operating profit Construction Civil Engineering Industry Project Development – of which Property Development – of which Housing Development Group functions Eliminations	123 101 -358 96 165 77 180 110 449 -479 476 588 -33 246 17 46 21 261 63 21 -54 -15 -46 25 -79 -58 -159 -33 -6 7 -23 -21	141 162 166 126 152 59 175 118 333 -435 283 519 114 127 309 265 29 -6 19 91 85 133 290 174 -34 -73 -53 -27 -16 4 -27 -8
			177
			148
			341
			264
			43
			221
			-47
			2
Group, segment reporting excl. MoS	619 -106 133 786	690 -156 853 993	885
Construction – effect MoS		400
Group, segment reporting	619 -106 133 786	1,090 -156 853 993	885
Adjustment of housing to IFRS IFRS 16, additional leases	190 85 330 115 5 9 8 10	98 153 25 -86 9 10 8 9	-119
			9
Group, IFRS	814 -12 471 911	1,197 7 886 916	775
Operating margin, % Construction Civil Engineering Industry Project Development – of which Property Development – of which Housing Development Group functions Eliminations	1.9 1.7 -5.1 1.7 3.9 2.2 4.0 3.2 7.4 -19.9 9.4 8.7 -4.6 23.3 1.2 5.4 100.0 1,134.8 13.9 300.0 -7.7 -1.5 -4.6 2.9	1.9 2.2 2.0 2.0 3.9 1.8 4.0 3.3 6.2 -15.7 5.0 7.3 7.3 6.9 15.6 11.9 44.6 -66.7 172.7 29.9 5.7 7.3 14.7 9.0
			2.3
			3.8
			5.6
			13.4
			35.8
			11.9
Group, segment reporting excl. MoS	4.1 -1.0 0.9 5.3	4.4 -1.2 5.0 6.0	5.2
Group, segment reporting	4.1 -1.0 0.9 5.3	6.9 -1.2 5.0 6.0	5.2
Adjustment of housing to IFRS IFRS 16, additional leases
Group, IFRS	4.8 -0.1 2.7 6.0	7.4 0.1 5.2 5.7	4.7
Key ratios, segment reporting, MSEK Earnings per share excl. MoS, SEK Earnings per share, SEK Capital employed (CB) Equity (CB) Orders received Order backlog at the end of the period	1.48 -0.45 -0.25 1.85 1.48 -0.45 -0.25 1.85 28,719 27,721 27,639 29,072 14,992 14,976 15,082 15,239 16,434 17,889 10,527 11,034 50,578 47,808 39,060 41,669	1.68 -0.54 1.89 2.69 3.86 -0.54 1.89 2.69 29,406 25,910 25,000 23,546 14,770 14,687 14,978 14,469 12,505 11,042 10,455 13,095 43,638 44,595 44,389 48,762
			2.36
			2.36
			22,828
			13,868
			14,334
			49,899

41

Alternative performance measures and definitions

Al ter na tive per for mance mea sures are used to de scribe the de vel op ment of op er - a tions and to en hance com pa ra bil i ty be tween pe ri ods. These are not de fined under IFRS but cor re spond to the meth ods ap plied by ex ec u tive man age ment and Board of Di rec tors to mea sure the com pa nyʼs fi nan cial per for mance. Al ter na - tive per for mance mea sures should not be viewed as a sub sti tute for fi nan cial in - for ma tion pre sent ed in ac cor dance with IFRS but rather as a com ple ment.

The dif fer ence be tween seg ment re port ing and re port ing ac cord ing to IFRS is de - scribed in more de tail in note 1. The dif fer ence pri mar i ly con sists of dif fer ences in ac count ing prin ci ples for our own hous ing de vel op ment projects where rev enue and prof it are rec og nized over time in seg ment re port ing and at one point in

time, when home buy ers take over their homes, in re port ing ac cord ing to IFRS. In seg ment re port ing leas ing fees for the lessee are rec og nized lin ear ly over the leas ing pe ri od for leas es that are clas si fied by the coun ter par ty (the lessor) as op - er a tional leas es. IFRS 16 Leas es is ap plied in Group re port ing ac cord ing to IFRS, which en tails that lessees rec og nize de pre ci a tion and in ter est at trib ut able to leas ing as sets and li a bil i ties. As a re sult the dif fer ence be tween seg ment re port - ing and re port ing ac cord ing to IFRS even af fects the items on the bal ance sheet, in clud ing net debt. Nonethe less, in the key ra tios below the method of cal cu la - tion is the same for both seg ment re port ing and re port ing ac cord ing to IFRS. For more in for ma tion and cal cu la tions, see Peabʼs web site www.peab.com/alternative- keyra tios.

Financial definitions

Available liquidity

Liq uid funds and short- term in vest ments along with unuti lized cred it fa cil i ties, ex clud ing unuti lized cred it fa cil i ties for project fi nanc ing. Shows the Groupʼs avail able liq uid i ty.

Capital employed for the business areas

Total as sets in the busi ness area at the end of the pe ri od re duced by de ferred tax re cov er ables and in ter nal re ceiv ables from the in ter nal bank Peab Fi nans with de duc tions for non- interest-bearing li a bil i ties and de ferred tax li a bil i ties. The mea sure ment is used to mea sure cap i tal uti liza tion and its ef fec tive ness for the busi ness areas, and is only pre sent ed as a net amount per busi ness area.

Net debt/equity ratio

Interest- bearing net debt in re la tion to eq ui ty. Shows fi nan cial po si tion.

Net investments

The change in the pe ri od of the rec og nized value of cur rent as sets (CB-OB) plus de pre ci a tion and write- downs. Shows the size of net in vest ments made.

Operating margin/Operating margin excl. MoS

Op er at ing prof it as a per cent age of net sales. Shows prof itabil i ty in the busi ness. Op er at ing mar gin excl. MoS is cal cu lat ed ex clud ing the ef fect of ar bi tra tion de ci - sion con cern ing Mall of Scan di navia. For de tails, see An nu al and Sus tain abil i ty Re port 2023.

Capital employed for the Group

Total as sets at the end of the pe ri od less non- interest-bearing op er at ing li a bil i - ties and pro vi sions. The mea sure ment is used to mea sure cap i tal uti liza tion and its ef fec tive ness.

Earnings per share/Earnings per share excl. MoS

Prof it for the pe ri od at trib ut able to share hold ers in par ent com pa ny di vid ed by the av er age num ber of out stand ing shares dur ing the pe ri od. Shows earn ings per share. Earn ings per share excl. MoS are cal cu lat ed ex clud ing the ef fect of ar - bi tra tion de ci sion con cern ing Mall of Scan di navia. For de tails, see An nu al and Sus tain abil i ty Re port 2023.

Equity/assets ratio

Eq ui ty as a per cent age of total as sets at the end of the pe ri od. Shows fi nan cial po si tion.

Equity per share

Eq ui ty at trib ut able to share hold ers in par ent com pa ny di vid ed by the num ber of out stand ing shares at the end of the pe ri od. Shows eq ui ty per share.

Net debt

Interest- bearing li a bil i ties in clud ing pro vi sions for pen sions less liq uid funds and interest- bearing as sets. Shows fi nan cial po si tion.

Net debt, segment reporting

Interest- bearing li a bil i ties in clud ing pro vi sions for pen sions less liq uid funds and interest- bearing as sets. As of Jan u ary 1, 2019 li a bil i ties con cern ing un sold part of on go ing own hous ing de vel op ment projects is in clud ed in net debt. Shows fi - nan cial po si tion for seg ment.

Operative cash flow

Cash flow be fore fi nanc ing ac cord ing to seg ment re port ing. The cash flow does not in clude re ceived in ter nal Group in ter est, paid in ter est and paid tax that is not al lo cat ed to the busi ness areas but only re port ed for the Group. In vest ments via leas ing charge cash flow from in vest ment op er a tions in the busi ness areas. Op - er a tive cash flow is only cal cu lat ed for the busi ness areas. Shows the cash flow gen er at ed per busi ness area.

Order backlog

The value at the end of the pe ri od of the re main ing in come in on go ing pro duc - tion plus or ders re ceived yet to be pro duced. Order back log is based on seg ment re port ing. Shows how much will be pro duced in the fu ture.

Orders received

The sum of or ders re ceived dur ing the pe ri od. Mea sures how new or ders re place pro duced work. Re gard ing our own hous ing de vel op ment projects, tenantowner as so ci a tions and hous ing com pa nies are con sid ered ex ter nal cus tomers.

Return on capital employed

Pre- tax prof it for the rolling 12 month pe ri od with the ad di tion of fi nan cial ex - pens es in per cent of the av er age (last four quar ters) cap i tal em ployed. The mea - sure ment is used to mea sure cap i tal ef fi cien cy and to al lo cate cap i tal for new in - vest ments and shows the Groupʼs earn ing ca pac i ty in de pen dent of fi nanc ing.

Return on equity

Prof it for the rolling 12 month pe ri od at trib ut able to share hold ers in the par ent com pa ny di vid ed by the av er age (last four quar ters) eq ui ty at trib ut able to share - hold ers in the par ent com pa ny. The mea sure ment is used to cre ate ef fi cient busi ness and a ra tio nal cap i tal struc ture and show how the Group has mul ti plied share hold ersʼ eq ui ty.

Non-financial definitions

Average number of employees

The sum of the num ber of hours Peab has paid for, di vid ed by the an nu al work - ing time.

Project and development property

Hold ings of un de vel oped land and de con t a m i na tion prop er ty for fu ture de vel - op ment, prop er ty with build ings for project de vel op ment, pro cess ing and there - after di vesti ture with in Peabʼs nor mal busi ness cycle.

CSI

CSI stands for Cus tomer Sat is fac tion Index and mea sures how sat is fied Peabʼs cus tomers are. CSI is a weight ed mea sure ment be tween 0 and 100 and is based on three ques tions: 1) Total sat is fac tion, 2) In re la tion to ex pec ta tions 3) In re la - tion to ideal sup pli er.

eNPS

eNPS stands for em ploy ee Net Pro mot er Score and mea sures em ploy ee en gage - ment. The score can vary be tween -100 and 100 and is based on the ques tion to em ploy ees: “How prob a ble is it that you would rec om mend your em ploy er to a friend or ac quain tance?”

LTI4 and LTIF4

Risk observations

A risk ob ser va tion means at a work place notic ing be hav ior, risks or short com - ings that could lead to an in ci dent or ac ci dent.

Serious accidents

Peab uses the Swedish Work En vi ron ment Au thor i tyʼs de f i n i tion of a se ri ous ac - ci dent as an ac ci dent where one or more per sons are in jured at a work place or a place they have vis it ed for work. Se ri ous ac ci dents can be in juries such as bone frac tures, ef fu sive bleed ing or nerve, mus cle or ten don dam age, in juries to inner or gans or sec ond or third de gree burns. Se ri ous ac ci dents that occur in our other Nordic coun tries are cat e go rized by the same de f i n i tion.

LTI4 refers to the num ber of work place ac ci dents with more than four days ab - sence, ex clud ing the day of in jury, and LTIF4 refers to the fre quen cy rate per one mil lion hours worked ac cord ing to the same de f i n i tion. LTI stands for Lost Time In jury.

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The Nordic Community Builder

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Local and close to our customers

Peab works lo cal ly where our cus tomers are and where peo ple live their lives. Every day our em ploy ees con tribute through four col lab o - rat ing busi ness areas to com mu ni ty build ing in Swe den, Nor way, Fin - land and Den mark. To geth er we build homes, schools, re tire ment homes, hos pi tals, swim ming pool fa cil i ties, mu se ums, of fices, air ports and ports. We build and main tain roads, rail roads, bridges, parks and much, much more.

Peab has con tributed to lo cal ly pro duced com mu ni ty build ing for more than 60 years. Now the jour ney con tin ues. Long- lastingly and re - spon si bly we are forg ing ahead, and im prov ing every day life where itʼs lived.

Net sales, appr. SEK 57 bil lion Employees, appr.

14,000

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Business area Construction

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Business area Civil Engineering

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Business area Industry

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Business area Project Development

Peab is the Nordic Com mu ni ty Builder with some 14,000 em ploy ees and net sales of ap prox i mate ly SEK 57 bil - lion. The Group has strate gi cal ly lo cat ed of fices in Swe - den, Nor way, Fin land and Den mark. Group head quar - ters are in Förslöv on the Bjäre Penin su la in Skåne. The share is list ed on Nas daq Stock holm.

Con tact

Peab AB (publ) Mar grete torpsvägen 84 SE- 269 73 Förslöv Phone +46 431- 890 00

peab.com

Pho tog ra phers: Anna- Karin Svantes son, An ni ka Pers son, Ce cil ia Hed ström, Hen rik Nordell, Ku va toimis to Kuvio Oy, Markus Es sel mark, Se bas t ian Lam otte and Therese Pet ters son.

Peab takes work en vi ron ment mat ters very se ri ous ly and works sys tem at i cal ly to cre ate safe work places. The kind of safe ty equip ment used varies de pend ing on na tion al reg u la tions and the type of op er a tions. A risk analy sis is al ways per formed for each work place be fore any ex cep tion is made. The peo ple pic tured in this pub li ca tion are wear ing per son al safe ty equip ment re quired by reg u la tions valid for the op er a tions and coun try they are in.