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

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

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

Peab will today, Wednesday November 30 2011, arrange a Capital Market
Day for investors, analysts and media at Valhall Park in Ängelholm. Jan
Johansson, President and CEO as of May 2011, and Peab’s executive
management will present Peab’s strategy in becoming the Nordic community
builder. Below is a summary of information not previously made public:
New business area division – new program for property development
In order to create a platform for continued growth as well as develop
our customer offer, rationalize our organization and clarify Management
operations will be divided into four business areas; Construction, Civil
Engineering, Industry and Property Development, as of 1 January 2012.
Property development will go through certain listed and unlisted
holdings, wholly owned companies and projects currently run in Business
area Construction. The ambition is to be the Nordic leader in acquiring,
enriching, managing and selling commercial property as well as housing
property for rent. Reporting will mirror the new organization as of the
first quarter 2012.
Specification of loan maturity
Peab’s goal is to a balance in the financing of our operations in terms
of average maturity times and financing forms. The percent of gross loan
debt which matures annually was per 30 September 2011 (taking into
consideration the refinancing measures communicated on 2 November):
2011: 11 %
2012: 27 %
2013: 4 %
2014: 35 %
2015: 5 %
2016 and later: 18 %
Establishment of an MTN program
In order to further develop our financing Peab has decided to set up a
medium term loan program, a so-called MTN program, with a loan framework
of SEK 3 billion. The prospectus has been submitted to The Swedish
Financial Supervisory Authority, FI, for approval. The program provides
Peab with the possibility to issue bonds as a complement to bank loans.
Peab has previously used borrowing sources outside the traditional bank
system. In 2004 a program was established to issue company papers, with
a loan framework of SEK 3 billion. In the beginning of November 2011
bonds were issued for a total of SEK 1,000 m in a so-called private
placement with a financial institution.
“Market conditions on the Nordic construction market are from a European
perspective relatively good, considering the strong economies in Sweden,
Norway and Finland. However, we are well prepared to quickly adjust to
the changing world around us and focus is on taking advantage of the
size of our business as well as improving cost-effectiveness.
We are currently in a building up phase, which affects operating margins
and ties up capital. Our strong financial base built on a long tradition
of profitable growth, well diversified operations, considerable access
to funds and stable bank relations helps us counteract this.
Long-term value creation has always been a basic premise for Peab since
the company was founded over 50 years ago. During my first year as CEO
we have continued to build on that ambition by growing, organically and
through acquisitions, determined to become the Nordic community
builder,” says Jan Johansson, President and CEO of Peab.
For further information, please contact:
Jesper Göransson, CFO Peab, +46 733 37 10 13
Fredrik Wahrolén, communication manager Peab, +46 733 37 10 07
Peab AB discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication at 07.00.a.m. 30 November
2011.