Other information

Risks and uncertainty factors

Peab’s business is exposed to operational and financial risks. The impact of these risks on Peab’s result and position depends on how well the day-to-day business is handled in the company. In addition, Peab faces circumstantial risks such as developments in the economy and altered conditions like changes in laws and regulations and other political decisions.

Handling operational risks is a constant ongoing process since there are always a large number of projects that are beginning, up and running and ending. Operational risks are taken care of in the line organization in each business area. Peab’s business is to a large extent project relaterad. Grey areas concerning contract terms can lead to borderline issues follwed by negotiations with customers. Negotiations concerning the project Mall of Scandinavia have not yet reached a final settlement. Peab’s assessment of the financial result has not changed from what we have previously communicated.

The financial risks are connected to tying up capital and the need for capital, primarily in the form of interest rate risk and refinancing risk. Financial risks are dealt with on Group level. For further information on risks and uncertainty factors, see the 2016 Annual Report.

Holdings of own shares

At the beginning of 2017 Peab’s own B shareholding was 1,086,984 which corresponds to 0.4 percent of the total number of shares. No changes have taken place during 2017.

The peab share

Peab’s B share is listed on the Nasdaq Stockholm, Large Cap list. As of 31 December 2017, the price of the Peab share was SEK 70.60, a decrease of two percent during 2017. During the same period, the Swedish stock market increased by six percent according to the general index in the business magazine “Affärsvärlden”. During 2017 the Peab share has been quoted at a maximum of SEK 109.50 and a minimum of SEK 70.60.

IMPORTANT EVENTS DURING THE REPORT PERIOD

In October Peab divested all its 2,458,447 shares in Lemminkäinen Oyj. The divestment generated a positive cash effect of around SEK 575 million. The transaction was reported in the fourth quarter and has affected net financial items positively by SEK 93 million.