Overview business areas
The Peab Group is presented in four different business areas: Construction, Civil Engineering, Industry and Project Development. The business areas are also operating segments.
Recognition of internal projects between business areas Construction and Project Development
The net sales and result in business area Construction presented refer to the contract construction in our own housing projects, in rental projects and other projects for business area Project Development. The percentage of completion method is used in the reporting. Net sales for both contract construction and the developer part of our own housing projects are reported in business area Project Development. The booked result consists of the result in the developer part using the percentage of completion method.
Presentation of property projects on our own balance sheet
Property projects on our own balance sheet, reported as project and development property, that are sold in the form of a company via shares the underlying sales value is recognized as net sales and the booked value on the balance sheet is recognized as an expense. For property projects reported as operations property or investment property the net effect on the result is recognized as other operating income or other operating cost.
Group functions
In addition to the business areas, central companies, certain subsidiaries and other holdings are presented as Group functions. The central companies primarily consist of the parent company Peab AB, Peab Finans and Peab Support (Shared service center).
Net sales and operating profit per business area
| Net sales | Operating profit | Operating margin | ||||||||||
| MSEK | Jan-Mar 2017 | Jan-Mar 2016 | Apr-Mar 2016/2017 | Jan-Dec 2016 | Jan-Mar 2017 | Jan-Mar 2016 | Apr-Mar 2016/2017 | Jan-Dec 2016 | Jan-Mar 2017 | Jan-Mar 2016 | Apr-Mar 2016/2017 | Jan-Dec 2016 |
| Construction | 6,386 | 5,199 | 25,308 | 24,121 | 139 | 116 | 565 | 542 | 2.2% | 2.2% | 2.2% | 2.2% |
| Civil Engineering | 2,388 | 2,029 | 11,099 | 10,740 | 39 | 37 | 357 | 355 | 1.6% | 1.8% | 3.2% | 3.3% |
| Industry | 2,237 | 1,894 | 12,504 | 12,161 | -23 | -12 | 742 | 753 | -1.0% | -0.6% | 5.9% | 6.2% |
| Project Development | 2,203 | 1,376 | 8,466 | 7,639 | 218 | 78 | 762 | 622 | 9.9% | 5.7% | 9.0% | 8.1% |
| – of which Property Development | 659 | 76 | 1,968 | 1,385 | 90 | 4 | 175 | 89 | 13.7% | 5.3% | 8.9% | 6.4% |
| – of which Housing Development | 1,544 | 1,300 | 6,498 | 6,254 | 128 | 74 | 587 | 533 | 8.3% | 5.7% | 9.0% | 8.5% |
| Group functions | 235 | 204 | 928 | 897 | -47 | -27 | -142 | -122 | ||||
| Eliminations | -2,353 | -2,010 | -9,412 | -9,069 | -10 | -4 | -81 | -75 | ||||
| Operative 1) | 11,096 | 8,692 | 48,893 | 46,489 | 316 | 188 | 2,203 | 2,075 | 2.8% | 2.2% | 4.5% | 4.5% |
| Adjustment for housing reporting 2) | 55 | -161 | 64 | -152 | 4 | -31 | 58 | 23 | ||||
| Legal | 11,151 | 8,531 | 48,957 | 46,337 | 320 | 157 | 2,261 | 2,098 | 2.9% | 1.8% | 4.6% | 4.5% |
1) According to the percentage of completion method (IAS 11)
2) Adjustment in accounting principle for own single homes in Sweden as well as housing in Finland and Norway according to the completed contract method (IAS 18)