A few years ago a major restructuring program was initiated meant to make Peab a more competitive company with a lower risk profile, improved profitability and financial stability. The Group now has a more efficient organization with four specialized business areas positioned closer to customers.

On the local market Peab continues to develop traditional entrepreneurship and recruit the right skills. Project selection is based on having the right skills, resources and being able to manage project risks. Today Peab’s order backlog consists of a higher share of smaller and mid-sized projects which lowers our risk profile. The Group has worked actively to reduce tied up capital and debt and these changes have resulted in better earnings. The platform is in place and today Peab is more profitable, financially stronger and more competitive.

Business concept

Peab is a construction and civil engineering company that puts total quality in every step of the construction process first. Through innovation combined with solid professional skills we make the customer’s interest our own and thereby build for the future.

A Group strategy in six parts

For the past few years profitability has been our focal point. The transition to greater focus on customers, employees and production has resulted in a more efficient and profitable business. Peab’s six Group strategies inform how the company should develop operations and reach the goals in the business plan.

Cost efficient business

Cost efficiency and good earning power are essential to developing a long-term competitive business. Cost efficiency is a matter of productivity and the right overhead level. As a result of the earlier reorganization Peab has now firmly established a satisfactory overhead level and is currently focusing on increasing productivity in all operations.

Strengthen and develop Peab’s customer relations

Strong customer relations are the key to positive cooperation and more efficient production with lower costs and higher quality. Customers primarily expect three main things from Peab: a safe and reliable partner, a structured and transparent way of working and the right competence in the right place. By explicitly focusing operations on customer relations, coupled with continuous surveys, in the past few years Peab shifted in the right direction and strengthened relationships with our most important stakeholders.

Best workplace

Peab is its employees and it is their commitment and professional skills that are the basis of the company’s success. Meeting the challenge the industry faces regarding the labor shortage with initiatives for long-term recruitment and developing the competence of existing employees are important factors for ensuring Peab has the right competence. In the coming years Peab will need to attract many new qualified employees with different areas of expertise. Peab works to ensure greater equality and diversity according to established Group goals. In the past few years Peab has concentrated on implementing plans to achieve the work environment goal, i.e. to halve the number of work accidents during 2015 to 2017.

Long-term profitable operations

Long-term profitability is necessary for Peab’s value creation. Profitability is fundamental since it allows Peab to continue to grow and develop. The company’s strategic direction takes both margin and return goals into account. Peab continues to work with cost efficient production and with choosing the right projects.

Sustainability integrated in Peab’s operations

All aspects of sustainability – financial, environmental and social – are integrated into operations. Responsibilities and authorizations are delegated to business areas where they are supported by experts on different levels of the organization.

To be seen and heard

Peab’s ambition is to be the Nordic Community Builder. Participating in, and contributing to, developing society increases our ability to attract customers, employees and investors. Peab should be seen and heard in the community and work close to our customers. Peab continues to prioritize its regional presence but has also chosen to engage in larger societal issues such as the construction industry agreement against bribes and corruption as well as solutions for better integration.

By explicitly focusing operations on customer relations, coupled with continuous surveys, in the past few years Peab shifted in the right direction and strengthened relationships with our most important stakeholders.

In the coming years Peab will need to attract many new qualified employees with different areas of expertise.

4.5%

One of Peab’s three explicit business objectives 2015-2017 is to become the most profitable company in the industry. During 2016 the operative operating margin improved to 4.5 percent (2.4).