Goals and strategies
Our vision is to be the Nordic Community Builder
We are building the sustainable society of the future through engagement and continuous development.
Three strategic goals will take us there.
Most satisfied customers in the industry
We are a complete community builder that offers comprehensive solutions and develops projects together with customers. We are the local player with the big Group resources.
People are what is most important to Peab. At Peab everyone should find safe, including workplaces with good work conditions and development opportunities. When our employees grow Peab grows.
Most profitable company
We will be profitable by working together with our customers with continuous improvements, quality and cost-efficiency. We know that the best workplace and the most satisfied customers generate profitability.
2017 ended the business plan period 2015-2017
The goal for business plan period 2015-2017 was to become the best company in the industry through three identified goal areas. Focus was on increasing customer satisfaction, becoming a more attractive employer and improving profitability. As we leave 2017 behind we can conclude that we have met our goals well but there is still more to do, which is why these three goals will follow with us as strategic goals in our continued work.
|Three goal areas||Result 2017|
Most satisfied customers in the industry
|The goal for 2017 was a SCI of 75 (73) and this was met.|
Best workplace in the industry
|Our latest personnel survey showed improvements in almost all areas. We have employees who are happy to recommend Peab, leadership is constantly improving and most people like the place where they work. In the latest survey Peab had a eNPS of 22, which is high above the benchmark (8).|
Most profitable company in the industry
|In 2017 Peab continued to move in the right direction and all key ratios have improved.|
Business plan 2018-2020
Just as we took the last steps laid out in the business plan 2015-2017 the right conditions were created in 2017 for entering a new business plan period. Among other things, we altered Group functions in order to highlight key competencies and improve our ability to collaborate between business areas and functions.
The three goals in the business plan period 2015-2017; Most satisfied customer, Best workplace and Most profitable company went from being connected to a business plan to being strategical goals since they will always be essential to the company’s profitability and competitiveness.
During the business plan period 2018-2020 five Group strategic focus areas that are not linked to the business cycle will be in force:
Right business – Strive to increase the number of profitable projects, greater internal collaboration and sustainable work methods.
Safe business – Every business deal should be a safe business deal. Safe, good and fair and sustainable every time means; safe, good and fair workplaces, quality-ensured suppliers as well as social, environmental and economic sustainability.
Production strategies – Take the advantage of our four business areas to the next level so that greater value is created both for Peab and our customers.
Skills recruitment – Based on what production needs we will recruit, train and develop for current and future roles.
Right costs – Means that support functions and digital systems should support productivity in our main processes and focus areas now and in the future.
Peab’s executive management steers the business using the guidelines adopted by the Board of Directors based on three financial goals: Return on equity, Equity/assets ratio and Dividends.
|Return on equity|||Goal>20%|
Return on equity should be at least 20 percent
The return on equity improved to 21.1 percent (20.1) in 2017. The contract business in Construction and Civil Engineering has generated stable operating profit while Industry and Project Development reported improved operating profit and margin. Earlier years were characterized by lower profitability and write-downs in the business, which had a negative effect on return on equity.
Equity/assets ratio should be at least 25 percent
In recent years the equity/assets ratio has been better than the goal and in 2017 it improved to 32.1 percent (29.7). The improvement is due to higher earnings and more efficient capital utilization.
Dividends should be at least 50 percent of the profit for the year
A dividend of SEK 4.00 (3.60) per share is proposed for 2017. Calculated as a share of the Group’s reported profit for the year the proposed dividend is 58 percent (61). The proposed dividend is equivalent to a direct return of 5.7 percent (5.0) calculated on the closing price on 31 December 2017.