Note 4 Revenue

Group 2019‚ MSEK Construction Civil Engineering Industry Project Development Group
functions		 Eliminations Group
Koncernen 2019. Mkr Bygg Anläggning Industri Projekt-
utveckling		 Koncern-
gemensamt		 Eliminering Koncernen
Allocation per internal/external customer Fördelning av intäkter – externt/internt
External sales Extern försäljning 24,265 12,141 9,784 7,726 92 54,008
Internal sales Intern försäljning 5,151 1,198 3,555 58 1,084 -11,046 –
Total Summa 29,416 13,339 13,339 7,784 1,176 -11,046 54,008
Allocation per country Fördelning per land
Sweden Sverige 22,349 12,063 11,712 6,011 993 -9,008 44,120
Norway Norge 3,604 1,144 1,003 429 116 -784 5,512
Finland Finland 3,463 132 608 1,344 67 -1,254 4,360
Other Övrigt 16 16
Total Summa 29,416 13,339 13,339 7,784 1,176 -11,046 54,008
Allocation per type of customer Fördelning per kundtyp
Public sector Offentliga kunder 8,457 6,782 3,085 98 18,422
Private customers Privata kunder 15,808 5,359 6,699 7,628 92 35,586
Internal customers Interna kunder 5,151 1,198 3,555 58 1,084 -11,046 –
Total Summa 29,416 13,339 13,339 7,784 1,176 -11,046 54,008
Allocation per point in time Fördelning per tidpunkt
At one point in time Vid en tidpunkt 62 37 5,746 2,033 66 -1,517 6,427
Over time Över tid 29,350 13,259 5,651 5,557 965 -8,082 46,700
Rent revenue 1) Hyresintäkter 1) 4 43 1,942 194 145 -1,447 881
Total Summa 29,416 13,339 13,339 7,784 1,176 -11,046 54,008
Allocation per type of revenue Fördelning typ av intäkt
Construction contracts Entreprenaduppdrag 29,350 13,259 5,651 5,549 39 -7,202 46,646
Sales of goods Försäljning av varor 3 3,665 -749 2,919
Sales of property projects Försäljning av fastighetsprojekt 1,866 1,866
Transportation services Transporttjänster 1,893 -659 1,234
Administrative services Administrativa tjänster 8 926 -880 54
Rent revenue Hyresintäkter 4 43 1,942 194 145 -1,447 881
Other Övrigt 59 37 188 167 66 -109 408
Total Summa 29,416 13,339 13,339 7,784 1,176 -11,046 54,008
1) Rent revenue is recognized according to IFRS 16
Group 2018‚ MSEK Construction Civil Engineering Industry Project Development Group
functions		 Eliminations Group
Koncernen 2018. Mkr Bygg Anläggning Industri Projekt-
utveckling		 Koncern-
gemensamt		 Eliminering Koncernen
Allocation per internal/external customer Fördelning av intäkter – externt/internt
External sales Extern försäljning 22,850 12,032 9,474 7,775 102 52,233
Internal sales Intern försäljning 5,490 1,713 3,810 69 941 -12,023 –
Total Summa 28,340 13,745 13,284 7,844 1,043 -12,023 52,233
Allocation per country Fördelning per land
Sweden Sverige 21,578 11,878 11,791 5,949 889 -10,149 41,936
Norway Norge 3,389 1,712 935 494 91 -741 5,880
Finland Finland 3,368 155 539 1,401 63 -1,128 4,398
Other Övrigt 5 19 -5 19
Total Summa 28,340 13,745 13,284 7,844 1,043 -12,023 52,233
Allocation per type of customer Fördelning per kundtyp
Public sector Offentliga kunder 10,178 7,958 2,727 119 88 21,070
Private customers Privata kunder 12,672 4,074 6,747 7,656 14 31,163
Internal customers Interna kunder 5,490 1,713 3,810 69 941 -12,023 –
Total Summa 28,340 13,745 13,284 7,844 1,043 -12,023 52,233
Allocation per point in time Fördelning per tidpunkt
At one point in time Vid en tidpunkt 67 32 5,652 2,361 121 -1,593 6,640
Over time Över tid 28,269 13,706 5,663 5,256 810  -9,056 44,648
Rent revenue 1) Hyresintäkter 1) 4 7 1,969 227 112 -1,374 945
Total Summa 28,340 13,745 13,284 7,844 1,043 -12,023 52,233
Allocation per type of revenue Fördelning typ av intäkt
Construction contracts Entreprenaduppdrag 28,262 13,706 5,663 5,254 -8,240 44,645
Sales of goods Försäljning av varor 5 3,545 -822 2,728
Sales of property projects Försäljning av fastighetsprojekt 2,188 2,188
Transportation services Transporttjänster 1 1,901 -672 1,230
Administrative services Administrativa tjänster 7 2 810 -816 3
Rent revenue Hyresintäkter 4 7 1,969 227 112 -1,374 945
Other Övrigt 62 31 206 173 121 -99 494
Total Summa 28,340 13,745 13,284 7,844 1,043 -12,023 52,233
1) Rent revenue is recognized according to IAS 17

The Group recognizes revenue when the Group meets a performance obligation, which is when a promised good or service is delivered to the customer and the customer takes control over the good or service. Control of a performance obligation can be transferred over time or at a certain point in time. The Peab Group’s revenue primarily consists of the following revenue flows: Construction contracts, Sales of goods, Sales of property projects, Transportation services, Rent revenue and other revenue.

Recognition over time

Revenue from Construction contracts and some other revenue is recognized over time. The transaction price of contracts with customers usually consists of fixed amounts, variable amounts or a combination of the two.

Revenue in ongoing construction projects is recognized over time based on the project’s degree of completion. This requires being able to calculate project revenue and project costs in a reliable manner. Project forecasts are regularly evaluated as a project progresses and are adjusted as needed.

Some contracts include several different performance obligations such as construction sales and contracts for operation and maintenance. Since operation and maintenance are not dependent on the construction contract this part is recognized as a separate performance obligation. In cases where contracts contain several performance obligations the transaction price is divided into each separate performance obligation based on their stand-alone sales prices.

In fixed price contracts the customer pays the agreed price on an established payment schedule. A receivable from the customer is recognized if a promised good or service Peab has delivered exceeds the payment. A liability to the customer is recognized if the payment exceeds the delivered services.

No financing component is considered to exist at the time of invoicing since the credit period is normally short. Terms of payment are usually 30 days. The Group’s obligations to fix errors and shortcomings concerning completed projects are recognized as provisions. Guarantee periods are usually two to five years.

Recognition at one point in time

Revenue from the sales of goods, property, transportation and certain other revenue is recognized at one point in time. Sales of goods is recognized as revenue when control of the goods is transferred to the customer, which normally occurs when the goods are delivered.

Revenue from the sales of property is recognized when control of the property is transferred to the customer, which normally coincides with the customer taking over the property.

Revenue is recognized based on the price in the contract, which is normally a fixed price. Variable components, such as rent guaranties, reduce the recognized revenue.

Normally invoicing takes place upon delivery and the credit period is usually short and therefore there is no financing component. Terms of payment are almost always 30 days. Credit periods exceeding 12 months are rare and in those cases the transaction price is adjusted for the effects of financing components.

The Group’s obligations to fix errors and shortcomings connected to delivered goods are recognized as provisions. These are conventional guarantees and are not considered to be separate performance obligations.

The remaining performance obligations are presented in the tables below, otherwise known as order backlog.

Group 2019-12-31‚ MSEK Coming financial year Next financial year Thereafter Total
Koncernen 2019-12-31. Mkr Kommande räkenskapsår Nästkommande räkenskapsår Därefter Summa
Construction Bygg 18,948 7,392 588 26,928
Civil Engineering Anläggning 7,946 3,436 2,064 13,446
Industry Industri 2,040 508 0 2,548
Project Development Projektutveckling 4,186 823 18 5,027
Eliminations Elimineringar -3,863 -1,548 -44 -5,455
Total Summa 29,257 10,611 2,626 42,494
Group 2018-12-31‚ MSEK Coming financial year Next financial year Thereafter Total
Koncernen 2018-12-31. Mkr Kommande räkenskapsår Nästkommande räkenskapsår Därefter Summa
Construction Bygg 20,552 7,482 1,742 29,776
Civil Engineering Anläggning 8,385 2,915 2,320 13,620
Industry Industri 1,799 447 0 2,246
Project Development Projektutveckling 4,982 1,875 277 7,134
Eliminations Elimineringar -5,154 -1,667 -136 -6,957
Total Summa 30,564 11,052 4,203 45,819