Note 4 Revenue

Group Jan-Dec 2020
MSEK		 Construction Civil Engineering Industry Project Development Group functions Eliminations Group
Segment		 Differences in accounting principles 1) Group IFRS
Koncernen Jan-dec 2020
Mkr		 Bygg Anläggning Industri Projekt-
utveckling		 Koncern-gemensamt Eliminering Koncernen
Segment		 Skillnader i redovisnings-principer 1) Koncernen IFRS
Allocation per external/internal  Fördelning av intäkter – externt/internt
External sales Extern försäljning 22,898 11,742 15,151 7,436 51 57,278 2,574 59,852
Internal sales Intern försäljning 4,091 1,101 3,569 64 1,155 -9,841 139 -139 –
Total Summa 26,989 12,843 18,720 7,500 1,206 -9,841 57,417 2,435 59,852
Allocation per country Fördelning per land
Sweden Sverige 19,417 11,637 11,484 4,543 997 -7,666 40,412 2,408 42,820
Norway Norge 3,766 1,101 1,868 1,031 131 -893 7,004 -288 6,716
Finland Finland 3,806 105 4,630 1,926 78 -1,277 9,268 315 9,583
Denmark Danmark 720 -5 715 715
Other Övrigt 18 18 18
Total Summa 26,989 12,843 18,720 7,500 1,206 -9,841 57,417 2,435 59,852
Allocation per type of customer Fördelning per kundtyp
Public sector Offentliga kunder 10,619 8,991 5,214 26 43 24,893 12 24,905
Private customers Privata kunder 12,279 2,751 9,937 7,410 8 32,385 2,562 34,947
Internal customers Interna kunder 4,091 1,101 3,569 64 1,155 -9,841 139 -139 –
Total Summa 26,989 12,843 18,720 7,500 1,206 -9,841 57,417 2,435 59,852
Allocation per point in time Fördelning per tidpunkt
At one point in time Vid en tidpunkt 32 20 5,983 625 56 -1,315 5,401 6,885 12,286
Over time Över tid 26,934 12,814 10,913 6,767 966 -7,135 51,259 -4,539 46,720
Rent revenue 2) Hyresintäkter 2) 23 9 1,824 108 184 -1,391 757 89 846
Total Summa 26,989 12,843 18,720 7,500 1,206 -9,841 57,417 2,435 59,852
Allocation per type of revenue Fördelning typ av intäkt
Construction contracts Entreprenaduppdrag 26,934 12,814 10,913 6,766 41 -6,218 51,250 -4,532 46,718
Sales of goods Försäljning av varor 4,203 -640 3,563 3,563
Sales of property projects Försäljning av fastighetsprojekt 494 -1 493 6,871 7,364
Transportation services Transporttjänster 1,573 -537 1,036 1,036
Administrative services Administrativa tjänster 1 925 -917 9 -7 2
Rent revenue 2) Hyresintäkter 2) 23 9 1,824 108 184 -1,391 757 89 846
Other Övrigt 32 20 207 131 56 -137 309 14 323
Total Summa 26,989 12,843 18,720 7,500 1,206 -9,841 57,417 2,435 59,852
1)  Refers to differences in accounting principles regarding our own housing development projects. In segment reporting revenue is recognized over time while in reporting according to IFRS it is at the time of possession. The item also includes revenue during January-November 2020 of SEK 171 million attributable to Annehem Fastigheter including internal revenue from other Peab Group companies.
2) Rent revenue is recognized according to IFRS 16.
Group Jan-Dec 2019
MSEK		 Construction Civil Engineering Industry Project Development Group functions Eliminations Group
Segment		 Differences in accounting principles 1) Group IFRS
Koncernen Jan-dec 2019
Mkr		 Bygg Anläggning Industri Projekt-
utveckling		 Koncern-gemensamt Eliminering Koncernen
Segment		 Skillnader i redovisnings-principer 1) Koncernen IFRS
Allocation per external/internal  Fördelning av intäkter – externt/internt
External sales Extern försäljning 24,265 12,141 9,784 9,067 92 55,349 954 56,303
Internal sales Intern försäljning 5,151 1,198 3,555 58 1,084 -11,046 – –
Total Summa 29,416 13,339 13,339 9,125 1,176 -11,046 55,349 954 56,303
Allocation per country Fördelning per land
Sweden Sverige 22,349 12,063 11,712 5,980 993 -9,008 44,089 2,326 46,415
Norway Norge 3,604 1,144 1,003 900 116 -784 5,983 -471 5,512
Finland Finland 3,463 132 608 2,245 67 -1,254 5,261 -901 4,360
Other Övrigt 16 16 16
Total Summa 29,416 13,339 13,339 9,125 1,176 -11,046 55,349 954 56,303
Allocation per type of customer Fördelning per kundtyp
Public sector Offentliga kunder 8,457 6,782 3,085 98 18,422 18,422
Private customers Privata kunder 15,808 5,359 6,699 8,969 92 36,927 954 37,881
Internal customers Interna kunder 5,151 1,198 3,555 58 1,084 -11,046 – –
Total Summa 29,416 13,339 13,339 9,125 1,176 -11,046 55,349 954 56,303
Allocation per point in time Fördelning per tidpunkt
At one point in time Vid en tidpunkt 62 37 5,746 725 66 -1,517 5,119 6,125 11,244
Over time Över tid 29,350 13,259 5,651 8,206 965 -8,082 49,349 -5,171 44,178
Rent revenue 2) Hyresintäkter 2) 4 43 1,942 194 145 -1,447 881 881
Total Summa 29,416 13,339 13,339 9,125 1,176 -11,046 55,349 954 56,303
Allocation per type of revenue Fördelning typ av intäkt
Construction contracts Entreprenaduppdrag 29,350 13,259 5,651 8,198 39 -7,202 49,295 -5,171 44,124
Sales of goods Försäljning av varor 3 3,665 -749 2,919 2,919
Sales of property projects Försäljning av fastighetsprojekt 558 558 6,125 6,683
Transportation services Transporttjänster 1,893 -659 1,234 1,234
Administrative services Administrativa tjänster 8 926 -880 54 54
Rent revenue 2) Hyresintäkter 2) 4 43 1,942 194 145 -1,447 881 881
Other Övrigt 59 37 188 167 66 -109 408 408
Total Summa 29,416 13,339 13,339 9,125 1,176 -11,046 55,349 954 56,303
1)  Refers to differences in accounting principles regarding our own housing development projects. In segment reporting revenue is recognized over time while in reporting according to IFRS it is at the time of possession.
2) Rent revenue is recognized according to IFRS 16.

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 product 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, Administrative 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.

Group 2020-12-31‚ MSEK Coming financial year Next financial year Thereafter Total
Koncernen 2020-12-31. Mkr Kommande räkenskapsår Nästkommande räkenskapsår Därefter Summa
Construction Bygg 19,149 6,432 977 26,558
Civil Engineering Anläggning 7,826 3,759 1,490 13,075
Industry Industri 3,019 902 0 3,921
Project Development Projektutveckling 3,286 1,410 455 5,151
Eliminations Elimineringar -4,290 -1,499 -207 -5,996
Total, segment reporting Summa, segmentsredovisning 28,990 11,004 2,715 42,709
Adjustment housing Justering bostäder 3,270 -65 -255 2,950
Total, IFRS Summa, IFRS 32,260 10,939 2,460 45,659
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, segment reporting Summa, segmentsredovisning 29,257 10,611 2,626 42,494
Adjustment housing Justering bostäder 2,103 216 124 2,443
Total, IFRS Summa, IFRS 31,360 10,827 2,750 44,937