Annual report 2012 - Peab

Annual report 2012

Peab AB is a public company. Company ID 556061-4330. Domicile Förslöv, Sweden.
All values are expressed in Swedish krona, abbreviated to SEK and million to MSEK.
Numbers presented in parentheses refer to 2011 unless otherwise specified.
Data regarding markets and the competition are Peab’s own assessments, unless
another source is specified. These assessments are based on the best and latest
available facts from, among others, published material.
The formal annual and consolidated accounts which has been audited by the
company accountant, pages 13-83.
Cover picture: Gothia Towers, Gothenburg, Sweden
Photo: Andreas Ulvdell
CONTENTS
2012 in summary 1
Comments from the CEO 2
Construction and civil engineering market 5
Business model 8
Group strategies 10
Financial and operative goals 11
Board of Directors’ report 13-35
The Group 13
Business area Construction 16
Business area Civil Engineering 20
Business area Industry 23
Business area Property Development 26
Risks and risk management 28
Sustainability 29
Other information and profit disposition 34
Financial reports and notes 37-83
Auditors’ report 84
Corporate governance report 86
Board of Directors 90
Executive management and auditors 91
The Peab share 92
Five-year overview 94
Financial and construction-related definitions 95
Summons to attend the Annual General Meeting 96
Shareholder information and addresses 97

A Nordic Community Builder
Peab is a Nordic construction and civil engineering company with operative
net sales of SEK 46 billion. We have 14,000 engaged employees
and around 130 offices in Sweden, Norway and Finland. With our local
presence and four collaborating business areas we can handle both
small and large, complex projects. Our goal is to always surpass our
customers’ expectations.
Construction performs contract work for external customers, the other
units in Peab and our own developed housing projects. Operations comprise
everything from new construction of homes and premises to renovation and
construction maintenance.
Civil Engineering is active on the local civil engineering market as
well as in infrastructure projects such as bridges and roads and the management
and maintenance of streets and roads.
Industry delivers among other things asphalt, cement, foundations, electricity
services, transportation, machine and crane services as well as prefab to both
external customers and the other units in Peab.
Property Development primarily develops commercial property
and apartment buildings. These operations are a vital part of developing Peab’s
contractor business and complete customer offers.
A Nordic Community Builder:
World class events and
shopping
Arenastaden, Solna October 2012: Peab is building a completely new city district,
Arenastaden, outside Stockholm with apartments, offices, a multi-arena and one of the
biggest shopping malls in the Nordic region. Every part is unique in itself – together they are
exceptional. This is a place for special meetings and moments. Arenastaden, which breaks
both construction technological and size records, was previously a rundown industrial area
that is being transformed through state-of-the-art engineering. We are creating a city district
that will take both inhabitants and visitors into the future.
Read more about Arenastaden at www.peab.se/arenastaden
Industry,
21% (21%)
Civil
Engineering,
24% (23%)
Operative net sales
per business area, 2012
Property Development, 1% (0%)
Construction,
54% (56%)

A Nordic customer base creates
opportunities for profitable growth
Peab works on a Nordic market. Sweden is the largest market at 81 percent.
Norway and Finland increased their share of Group operating net sales
during 2012 from 18 to 19 percent.
Operative net sales per
geographic market, 2012
Finland
6% (7%)
Norway
13% (11%)
Sweden
81% (82%)
Operative net sales per
customer type, 2012
Other
11% (13%)
Private
58% (55%)
Public
31% (32%)
Highlights
PEAB IN SUMMARY
Peab is organized in four business areas; Construction, Civil Engineering,
Industry and new in 2012 Property Development.
In addition to continued investments in existing development projects, business
area Property Development acquired a handful of large new projects, among
them parts of Vasallen and at the same time sold others such as the housing
development property to Domestica.
As part of Peab’s long-term program for Norrland, which Peab initiated over 20
years ago, we won a number of new contracts during the year from customers
such as LKAB, Boliden and Northland Resources. Peab is currently one of the
largest private employers in Norrland.
Sweden’s new national arena, Friends Arena, was built by Peab and inaugurated
in October 2012. We continue to develop Arenastaden in Solna. We have started
construction on housing there and on one of Sweden’s largest shopping centers,
the Mall of Scandinavia.
Through a jointly owned company Peab and Folksam acquired KF Fastigheter’s
share of Kvarnholmen Utveckling AB as well as another company that came with
development rights. After the acquisition Kvarnholmen Utveckling AB, which
works with managing the development rights for the production of more than
1,500 new apartments, is owned equally by JM and by the Peab and Folksam
jointly owned company.
Peab is building the extension of E4 South at Sundsvall. The project is a general
contract with functional requirements and a future management and repair
contract that Peab’s business areas Civil Engineering and Industry are jointly
responsible for.
In March 2013 Deputy CEO Jesper Göransson took over as CEO and acting
President of Peab. He replaces Jan Johansson. The process to find a new
ordinary CEO has been initiated by the Board.

Stable volumes but lower profits
Orders received for Construction and Civil Engineering increased by 2 percent to SEK
38,743 million. Order backlog at the end of the year was somewhat lower than at the start
largely due to a high level of production during 2012.
Group operative net sales increased by 5 percent to SEK 45,997 million due to the good
market situation in the beginning of the year together with a high level of production
throughout the year. Net sales increased in all the business areas.
The operative operating profit decreased to SEK 1,002 million (1,483) primarily due to writedowns
totaling SEK 675 million, of which SEK 300 million was for Tele2 Arena in Stockholm
and SEK 375 million in construction operations in Norway.
Cash flow from current operations increased to SEK 503 million (60) despite an increase in
acquisitions of project and development property.
Earnings per share were SEK 2.47 (3.26).
The equity/assets ratio amounted to 24.9 percent (25.4), which is on par with the financial
goal.
The Board proposes a dividend of SEK 1.60 per share, which is equivalent to 65 percent of
the result for the year.
An action plan was initiated in the business area Construction with the intent to improve
profitability by methodically developing leadership, project organization and internal processes.
This will, among other things, lead to a greater focus on profitability when choosing
projects, ensure that we have the right resources for the projects we take on and that
follow-up and control of ongoing projects function well.
The Group’s other operations and Group staff were reviewed during the year for the purpose
of reducing costs and thereby raising profitability.
Peab set up a Medium Term Notes program (MTN) with a loan ceiling of SEK 3,000 million.
This extended our capital base with a new complement to traditional bank financing. At the
end of the year obligations worth a total of SEK 1,000 million were outstanding under the
MTN program.
Financial summary
Jan-Dec Jan-Dec Jan-Dec
2012 2011 2010
Operative net sales, MSEK 1) 45,997 44,015 38,184
Net sales, MSEK 46,840 43,539 38,045
Operative operating profit, MSEK 1) 1,002 1,483 1,563
Operative operating margin, % 1) 2.2 3.4 4.1
Operating profit, MSEK 1,055 1,505 1,503
Operating margin, % 2.3 3.5 4.0
Pre-tax profit, MSEK 813 1,195 1,513
Earnings per share before dilution, SEK 2.47 3.26 4.11
Dividend per share, SEK 2) 1.60 2.10 2.60
Return on equity, % 9.2 12.1 15.6
Equity/assets ratio, % 24.9 25.4 27.8
Cash flow before financing, MSEK 974 –1,071 –315
Net debt, MSEK 6,470 6,626 5,719
1) Operative net sales and operative operating profit are reported according to pecentage of completion method. Net sales
and operating profit are reported according to legal accounting.
2) Board of Directors’ proposal for 2012 to the AGM.
Return on equity 1)
%
35
30
25
20
15
10
5
0
2008
2009
2010
2011
1) According to legal accounting
Goal >20%
2012
Equity/assets ratio 1)
%
35
30
25
20
15
10
5
0
2008
2009
2010
Goal >25%
2011
1) According to legal accounting
2012
Operative net sales
MSEK
50,000
40,000
30,000
20,000
10,000
0
2008*
2012 IN SUMMARY
2009
2010
2011
* Pro forma including Peab Industri
2012
Operative operating profit and
margin
MSEK %
3,000
2,500
2,000
1,500
1,000
500
40,000
30,000
20,000
10,000
0
2008* 2009
0
2010
2011
* Pro forma including Peab Industri
2008
2009
2010
2011
2012
Orders received and order backlog
Construction and Civil Engineering
MSEK MSEK
2012
Order backlog per 31 Dec Order intake
Dividend
SEK %
4
3
2
1
6
5
4
3
2
1
0
40,000
30,000
20,000
10,000
0
2008 2009 2010 2011
0
2012*
Dividend per share Dividend, %
* For 2012, Board of Directors' proposal
0
80
70
60
50
40
30
20
10
PEAB ANNUAL REPORT 2012
1

COMMENTS FROM THE CEO
Lasting, sustainable
and cooperation
In many ways 2012 was an eventful year for Peab, a mixture of good news
and disappointments. Production levels were high but our profitability
was way too low. We had a stable and good level of orders received but
we also watched demand on the Nordic construction market recede. The
most significant factor behind the decline is the weak development of
new production in housing. The housing sector did not drive construction
investments the way it usually does.
THE PAST YEAR
During 2012 Peab worked in four business
areas; Construction, Civil Engineering,
Industry and Property Development. Our
business areas make up a complete
customer offer but they also comprise a
vital diversification in terms of markets and
customers. Three of the business areas
Civil Engineering, Industry and Property
Development developed well in 2012 but
our largest business area was less
successful than anticipated. During the year
write-downs amounted to SEK 675 million
at the same time underlying earning was far
too low. Our highest priority now is to restore
profitability in 2013.
In March 2013 CEO and President Jan
Johansson chose to quit his position and I
was appointed CEO and acting President.
2 PEAB ANNUAL REPORT 2012
The orders I and the other members of
executive management have received from
the Board are to speed up the work to lower
costs and increase profitability. We also
need to make changes in the balance sheet
and reduce the amount of capital tied up.
SUSTAINABLE COMMUNITY
BUILDING
In addition to our traditional role as a
construction company in recent years Peab
has developed its position as a community
builder. We participate more and more in
the creation of a forward looking and
sustainable society by taking a broader
responsibility and thereby benefiting the
community.
This means we offer fully functional
sustainable and environmental solutions in
THE TUREBERG CHURCH
Sollentuna
our projects. Our customers are making
increasingly higher demands on expertise
and experience in matters that concern
sustainability. Sustainability is often a
matter of using common sense, exercising
good judgment and maintaining order in our
workplaces. This might revolve around how
we take care of waste the best way, minimize
energy consumption or what we think
about certification. For example, all our own
developed homes are environmentally
certified. Peab’s goal is to be on the cutting
edge of efficient sustainability, not just talk
the talk but walk the walk. We want whatever
we build today to meet demands from
future generations whether they be environmental,
financial or social. Building sustainably
means building to last.

LASTING
While we have to be sensitive and capable
of changing, lasting is one of Peab’s
mottos. By building lasting relationships
with customers, suppliers and other partners
we create stability in our organization.
We have the same lasting view of our
employees, and the expertise and experience
they develop is a significant competitive
advantage. Job satisfaction, safety and
security at our workplaces are based on our
long-term perspective and the best platform
for achieving good results. By having this
lasting perspective when we do things we
can improve the way we produce, better
develop construction material and provide
our employees on all levels with the opportunity
to grow. Lasting creates added value
and credibility.
COOPERATION
From the very beginning Peab has been a
company based on cooperation. Through
internal collaboration between the Group’s
different business areas we can offer the
market alternatives that are very competitive.
Cooperation is also the way we work
externally. Years of building networks with
customers, authorities, suppliers and other
partners facilitates and speeds up our daily
operations.
Cooperation is another motto at Peab
and it’s important that this collaboration is
correct and transparent where all the partners
involved participate on equal terms. By
working together we can realize our ambition
to bring costs down and reduce lead
times without lowering our standards of
quality. Although we have done quite a bit in
this area there are always more ways to
improve and this is something we work on
every day.
OUR VALUES
Peab’s core values Down-to-earth, Developing,
Personal and Reliable make up the
Jesper Göransson, CEO and acting President
Group’s value foundation. These values
reflect our company culture and the way we
want our customers and business partners
to perceive us. Our value foundation is built
on the credibility of our brand and this is a
matter that concerns everyone in the
company. It’s a given that our customers
must be able to trust us just as we must be
able to trust them. We build our credibility
when we keep our promises, meet deadlines,
stay within a budget and comport
ourselves with good ethics. We will always
be a company that is open and acessible
and which other companies and people
want to deal with. Peab’s brand stands and
falls with our credibility. This concerns
everyone in the Group and is something we
all must cherish and take responsibility for.
EFFICIENT CONSTRUCTION
Peab’s business areas Construction, Civil
Engineering, Industry and Property Development
cover together virtually anything
and everything offered on the construction
market. Having four business areas
broadens the range of our expertise and
this means we can offer our customers
competitive, complete solutions in our
community building. It also entails being
able to further rationalize our processes on
the worksite in both small and large
projects, which is of benefit to our
customers.
A concrete example of how we can
rationalize construction is the new production
methods which have recently been
implemented in logistics. Simple changes
like respect for delivery times, an overhaul
of the flows on sites, new ideas concern -
ing waste management and more have
lead to tangible improvements. The innovative
thinking in logistics has had a very
positive effect on the end result in several
of our major projects like Clarion Hotel
Post in Gothenburg, Waterfront in Stockholm,
Arenastaden in Solna and the
COMMENTS FROM THE CEO
”While we have to be
sensitive and capable of
changing, lasting is one
of Peab´s mottos”
department stores in Peab’s group level
contract with IKEA.
IMPROVED PROFITABILITY
An action plan was adopted in 2012 that
delineates how we can improve profitability.
This will be done by developing leadership,
project organization and internal processes.
Work on this action plan will intensify during
2013.
In order to generate the desired level of
profitability everyone, on every level, needs
to perform well. At the same time everyone
in the Group has to constantly keep costs in
mind.
Even when the economy is slow we
must meet our profit targets. We will therefore
put even more energy into rationalizing
our construction processes and avoiding
projects that do not have the right risk profile.
The old words of wisdom that say make
sure the right resources are available
before digging the hole ring truer than ever.
Förslöv in April 2013
Jesper Göransson
CEO and acting President
PEAB ANNUAL REPORT 2012
3

A Nordic Community Builder:
Experience is passed from
project to project
IKEA, Uddevalla, June 2012: Peab was commissioned to build a new store for IKEA in
Uddevalla as part of the agreement made in 2010 between IKEA and Peab. The store in
Uddevalla is the third of ten included in the contract and is expected to be completed by the
summer of 2013. As far as possible the same production leadership works with all the stores
in the Nordic region. This provides us with valuable experiences that go from one project to
the next. It also saves money and the environment, for the good of everyone involved.
4 PEAB ANNUAL REPORT 2012

Nordic construction and civil
engineering market
CONTRACTING WHILE
INVESTMENTS ARE STILL NEEDED
There are signs that the Nordic construction
market is contracting. At the same time
underlying investment needs continue to
be substantial in Sweden, Norway and
Finland. The housing market is not in
balance, refurbishments are greatly needed
in both homes and premises and an under
dimensioned infrastructure requires extensive
investments in communications,
energy supplies and water and sewage
networks.
BIG HOUSING SHORTAGES
Population growth and continued urbanization
are strong forces on the housing market.
The housing shortage in Sweden will accelerate
in 2012-2014 and hinder mobility in the
labor force through uncertainty in households,
more stringent financing requirements
and sluggish planning processes. At the
same time special municipal demands on
housing design leads to higher and higher
construction costs.
RENOVATION AND RENEWMENT
The need for renovation is considerable in
both housing and premises in all three
countries. Up to 300,000 apartments in
CONSTRUCTION AND CIVIL ENGINEERING MARKET
Building houses, roads, bridges and other infrastructure is as old
as our civilization. Today the construction and civil engineering
industry is one of the most important and largest players in the
global economy. It is also a market that grows over time, even
though some years are affected negatively by a turndown in the
economy.
Gross domestic product in the Nordic region
Fixed prices, change in percent
%
8
6
4
2
0
-2
-4
-6
-8
-10
2008
2009
Source text: Industrifakta.
2010
2011
Sweden Norway Finland
Sweden from the period 1960-75 need to
be refurbished in the next five years.
Throughout the Nordic region public premises
require renovation to meet demographic
changes and older retail premises
and offices need to be refitted to modern
technical demands.
ENERGY AND CLIMATE
An important part of renewing buildings is
drastically reducing energy consumption to
achieve established climate goals. At the
same time newly constructed buildings are
expected to rapidly approach a zero energy
standard and the construction industry’s
production processes are becoming more
energy efficient. Parallel with this development,
major investments in a more sustainable
supply of energy are needed in every
sector of society.
GROWTH AND RISING INCOMES
Despite a slowing business cycle, economies
in the Nordic region are stronger and
developments in disposable incomes more
positive than in the rest of Europe. This
creates a platform for a quick recovery in
demand for housing and premises when
the situation in the euro area begins to
stabilize.
2012
2013F
F=Forecast
Source: Konjunkturinstitutet, Sweden.
Interest rates and currencies
10 year government bonds
Intrest
6
5
4
3
2
1
0
2005
2006
CONTINUED URBANIZATION
Populations continue to rise in growth
regions in the Nordic countries. This puts
higher demands on housing and public
services,augmented by the needs of an
aging citizenry.
UNDER DIMENSTIONED
INFRASTRUCTURE
Greater mobility in the labor market raises
the need for efficient commuting. Well functioning
mass transit systems and transportation
networks are essential to employment
and growth. This, and EU’s efforts to
create a more effective trans-European
transportation network, generate greater
investments in road and railroad networks.
LOW INTEREST RATES
It appears that at least Sweden and Finland
will continue to have low interest rates in
2013, which reduces the risk of falling
housing prices and can facilitate recovery
of the demand for housing. To a certain
extent low rates also counter the negative
effects of higher equity and amortization
requirements to buy a home.
2007 2008 2009
2010
Sweden Norway Finland
2011
2012
Source: Sveriges Riksbank.
PEAB ANNUAL REPORT 2012
5

CONSTRUCTION AND CIVIL ENGINEERING MARKET
MACROECONOMY
Sweden
GDP in 2012 was slightly lower than forecasted
and is expected to be to around 1.0
percent in 2013. Two underlying factors
behind this development are weaker
household consumption and exports.
Unemployment is expected to increase in
Housing investments, 2008 – 2013
MSEK
60,000
50,000
40,000
30,000
20,000
10,000
0
2008 2009
Housing investments Other building construction investments
2010
2011
2012
2013F
Sweden Norway Finland F=Forecast
After the recovery in 2010 in Sweden and Finland, and in 2011
in Norway, construction of new housing diminished in 2012 in
all three countries. The forecasts for 2013 are a continued
drop in primarily single homes in Sweden and Finland and
apartments in Norway. This means the gap between single
home construction in Sweden and other countries will remain
significant as sluggish planning processes and requirements
for larger down payments presses single home production to
new lows. At the same time it appears that investments in the
renovation of apartment buildings, mainly from the period
1960-1975, continue to grow in Sweden where they have long
been needed.
GROWING HOUSING SHORTAGE
Demographic changes and urbanization in all three countries
are fueling the need for more housing in growth regions, and
particularly in Sweden the low level of housing construction is
beginning to have a negative effect on economic recovery.
Forecasts indicate that in 2012-2014 the already considerable
lack of housing will increase by at least 50,000 apartments on
top of the fact that nearly all the municipalities with growing
populations have produced too little housing for the past
several years. Similar problems exist in Norway and Finland
even though there has been much more construction of new
housing per inhabitant in recent years.
LOW INTEREST RATES CAN STIMULATE
Both Sweden and Finland have low interest rates which
normally should stimulate housing demand. However, this
may not be enough to counter the effects of rising unemployment,
more stringent financing demands and the uncertainty
about economic developments. In Norway, on the other hand,
it is possible that continued stable employment levels, high
housing prices and the strong development of disposable
incomes will uphold the demand for housing for another few
years.
Source text: Industrifakta.
6 PEAB ANNUAL REPORT 2012
2013 and CPI inflation is expected to fall
further from an already low level. Even the
policy interest rate is expected to continue
to drop and only increase marginally in
2014. At the same time there are signs of a
more expansive financial policy from the
government.
Other building construction investments, 2008 – 2013
MSEK
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2008 2009
Norway
Growth in Norway is still the highest in the
Nordic region but it is expected to slow
slightly to 3.0 percent in 2013. Household
consumption increased in 2012 and is
expected to remain on a high level in 2013.
CPI inflation fell in 2012 but is expected to
2010
2011
2012
2013F
Sweden Norway Finland F=Forecast
Other building construction investments in commercial, industrial
and public premises showed strong growth in Sweden
and Norway in 2010-2011 with continued growth in Norway in
2012. In 2013 investments levels are expected to contract in
both countries and in Finland premise construction is
expected to remain on the same low but stable level as in
recent years.
OFFICE AND RETAIL SPACE
There has been more construction in this sector in Norway
than in the rest of the Nordic region, but despite a significant
demand for premises in, for example, the Oslo region there
was, just as in Sweden, a downturn in 2012 when external
uncertainty increased. This decline is expected to continue in
2013 and reach Finland as well. One of the factors behind the
weaker development in all three countries is that it has become
more difficult to finance commercial space construction and
the uncertainty surrounding how the service sector and retail
stores will be affected by the developments in the rest of
Europe.
INDUSTRIAL CONSTRUCTION
Industrial construction grew in both Sweden and Norway
during 2012 primarily through major investments in base
industry while in Finland developments were the opposite.
Global turbulence is expected to lead to a decline in exports in
2013, which will dampen investments in industry in Sweden
and Norway while Finland may experience a slight upturn from
a low level.
PUBLIC PREMISES
Construction in the public sector in Sweden dropped slightly in
2012 while it continued to rise to new record levels in Norway.
There was a minor upturn in Finland although investments are
still on a low level. Construction in 2013 is expected to slowly
cool down to more normal levels in both Sweden and Norway
as a result of concerns about shrinking tax incomes in Sweden
and the indebtedness of many municipalities in Norway.

ise again in 2013. Even the policy interest
rate is expected to increase later in the
year. This can dampen household
borrowing and lead to a slightly weaker
demand for housing. At the same time
unemployment is expected to remain on
the low level of around 3 percent in 2013.
MSEK
Civil engineering investments
Ongoing investments, 2008-2013
100,000
80,000
60,000
40,000
20,000
0
2008 2009
2010
2011
Sweden Norway Finland
2012
2013F
F=Forecast
SWEDEN
Civil engineering construction increased in 2012, in part
through substantial private investments in energy supply.
Even public civil engineering investments rose slightly but they
are expected to fall back again in 2013 due to lower funding.
Unchanged levels are forecasted for 2013 despite the enormous
investment needs in mass communication and energy
supply.
NORWAY
Civil engineering construction accelerated in Norway during
2012 and this is expected to continue in 2013 as well. Growth
is generated in several areas but above all in roads and railroads
as well as energy-related investments, including the
offshore sector. Factors that may have a dampening effect on
Norwegian civil engineering construction are the lack of available
capacity and the inability of municipalities to finance
major projects.
FINLAND
Finnish civil engineering investments were more or less
unchanged in 2012 and this is projected for 2013 as well.
Major mass transit investments are in progress in the region
around the capital where an influx of new residents has
created a need for more efficient communications including a
new metro line. One area of uncertainty in the coming years is
what will be prioritized in the government’s financial policy.
Source text: Industrifakta.
Finland
Government finances continued to be
stable despite lower growth in 2012. The
forecasts for GNP in 2013 are on the same
level as in Sweden despite slightly lower
household consumption and growing
unemployment. Comparatively high infla-
CONSTRUCTION AND CIVIL ENGINEERING MARKET
MSEK
Total construction and civil
engineering investments
Total building construction and civil engineering investments, 2008-2013
300,000
250,000
200,000
150,000
100,000
50,000
0
2008 2009
tion of around 3 percent is expected to fall
somewhat in the next two years, which can
maintain real incomes. Household finances
are also supported by an extremely low
interest rate, which is expected to drop
even further.
2010
2011
Sweden Norway Finland
2012 2013F
F=Forecast
PUBLIC SPACE DOMINATES
The greatest single sector in Nordic construction in 2012 was
public premises with investments for a total of around SEK
190 billion. Included in this sum are a number of smaller
sectors such as healthcare, education and public administration.
Next in line was civil engineering construction at around
SEK 170 billion followed by new and refurbished housing for
some SEK 142 billion and private premises such as offices,
stores and industrial facilities at around SEK 118 billion. In
addition to the total construction investments of about SEK
620 billion, costs for maintenance, renovation and repair
amounted to around SEK 430 billion.
CONSTRUCTION DEVELOPMENT 2008-2013
During the past five years total construction investments in
Sweden and Norway have more or less hovered around SEK
200 to 250 billion per year, while total investments in Finland
have been considerably more modest at around SEK 125
billion. And although Sweden and Norway have different
underlying macroeconomic situations the two countries still
had similar business cycles that were plainly affected by the
crisis in the euro area. Finland, however, has had a completely
different business cycle and a more stable investment level
where, somewhat surprisingly, the effect of developments in
the rest of Europe are not as obvious. Even the accumulated
forecasts for 2013 vary between the countries. In both
Sweden and Norway construction volumes are expected to
contract while in Finland it looks like they will remain on the
same stable level as the past few years. However, a prerequisite
for this development is that no new negative events occur
in the euro area that affect employment levels, financing terms
etc. in the three Nordic countries.
PEAB ANNUAL REPORT 2012
7

BUSINESS MODEL
A Nordic Community Builder
in constant development
Peab’s business model is built on our shared fundamental values that
are in turn based on our four core values: Down-to-Earth, Developing,
Personal and Reliable. These are the cornerstones of Peab’s company
culture and they steer the way we work. Together our four business
areas form a comprehensive offer to the market.
Stakeholders
Owners
Financiers
Customers
Suppliers
Employees
Society
8 PEAB ANNUAL REPORT 2012
Fundamental Values
Peab’s business model is built on our shared values and the four core
values that permeate every aspect of our business. We continually
develop our personnel based on this foundation.
OUR CORE VALUES
Down-to-earth: We will be down-to-earth in the way we work, decision-making
will be close at hand and we will be sensitive to the needs
of our customers.
Developing: We will be innovative, flexible and strive for continuous
improvement.
Personal: Through an honest and trustful dialogue with our customers
and partners we will create and maintain long-term, good relationships.
Reliable. We will always perform with good business ethics, competence
and professional skill.
External factors
The economy
Interest rates
Financial market
Market needs
Demographic growth and urbanization
The environment
Financial goals
Stakeholders
External factors
Earnings in Peab will be used to develop the business
and generate a return to the owners. The business is
steered by the financial goals:
Return on equity
The equity/assets ratio
Dividends
These are broken down into a number of operational
goals adjusted to suit different operations in the Group.
Read more about our goals on page 11.
Property Development

A business concept that builds on
local entrepreneurs with a big group’s
resources
We have a clearly defined business concept that is built on a large
number of entrepreneurs working close to our customers with access to
the competence and scale advantages that only a big group can offer.
BUSINESS CONCEPT
“Peab is a construction and civil engineering company that puts
total quality in every step of the construction process first. Through
innovation combined with solid professional skills we make the
customer’s interest our own and thereby build for the future.”
Vision
Construction Civil Engineering
Business
concept
Fundamental
Values
Financial
goals
Industry
Strategies
Our vision
PEAB BUILDS SUSTAINABLE COMMUNITIES
FOR THE FUTURE
We are the obvious partner for community building in the Nordic
region. We come up with ideas, take initiative and break new
ground. We conserve resources and our climate smart solutions
have spearheaded developments. Our work is sustainable throughout
its entire life cycle.
PEAB IS THE NORDIC COMPANY FOR CONSTRUCTION
Our entire organization works together to exceed our customers’
expectations. Peab is always close to our customers no matter
whether they operate locally, nationally or globally. Satisfied customers
contribute to our success in the entire Nordic region.
PEAB ATTRACTS TALENTED PEOPLE
We are the number one Nordic employer. Our values are simple
and clear. Our personnel is deeply engaged and our leaders
committed to helping people develop. When our employees grow,
Peab grows.
Value creation
Group strategies that lead to our vision
We realize our vision through six Group strategies:
Cost-efficient business
Investment in profitable growth in the Nordic region
Be seen and heard in the Nordic region
Pioneers in sustainable community building
Strengthen and develop customer relations
Be the best workplace in the Nordic region
Read more about our strategies on page 10.
Four business areas that form
a competitive offer
BUSINESS MODEL
Value creation
Sustainable community building
Customer benefits
Return on investments
Competence development
Experience transfers
Community benefits
With our four business areas Construction, Civil Engineering, Industry
and Property Development we have access to, either through direct
ownership or well-developed partnerships, the strategic resources
required to carry out major, resource-demanding projects. This allows us
to offer customers everywhere in the Nordic region effective comprehensive
solutions. Read more about our business areas on pages 16-27.
PEAB ANNUAL REPORT 2012
9

GROUP STRATEGIES
Group Strategies
Our six defined Group strategies help us in the work to achieve
our vision. Our strategic focus is long-term but can be adapted
short-term to current conditions. Starting in the latter part of 2012
our focus has been on ensuring cost-efficient operations due to the
latest developments in profitability and the weakening market.
Strategy Description
Cost-efficient business
Investment in profitable
growth in the Nordic region
Be seen and heard in the
Nordic region
Pioneers in sustainable
community building
Strengthen and develop
customer relations
The best workplace in the
Nordic region
10 PEAB ANNUAL REPORT 2012
Cost efficiency is essential to developing a competitive business that can also produce a
return for Peab’s owners, which is why we are always focused on increasing efficiency
throughout our operations.
Profitable growth is essential to Peab’s value creation. Growth is important since it
improves our ability to compete – in part because big companies are usually involved in
big projects and in part because size is an advantage that lowers costs.
We intend to make Peab a household name as a Nordic Community Builder. By being seen
and heard, in our own industry and on the Nordic market, we can better attract customers,
personnel and investors.
By being pioneers in sustainable community building we not only create value for our
customers and their customers, we create value for society at large, our employees and
our owners. This, in turn, paves the way for new markets and business opportunities for
both our customers and us.
In addition to being the foundation of Peab’s operations our strong customer relations are
the key to efficient production at lower prices with higher quality.
In the coming years more and more Peab employees will retire while the labor force
will diminish as people born in the 40s leave it. This sharpens the competition for young,
qualified workers – in construction and in industry in general. At the same time Peab plans
to grow which means we must be able to attract, develop and keep new employees.

Financial and operative goals
The surplus from operations will be used in investments,
to develop our business and deliver a return to our owners.
FINANCIAL GOALS
Peab’s management steers operations
based on the Board’s guidelines that are
founded on three financial goals; Return on
equity, Equity/assets ratio and Dividends.
They were adopted in the spring of 2007
and are valid for the entire Group. The
goals are clear and simplify communication
with financial markets.
Over time goal achievement can vary
with changes in the economy but also
depending on the different stages of our
development where some are characterized
by expansion and others by consolidation.
Last year Peab successively moved
out of the expansive phase of the past few
years that was coupled with heavy investments.
We have acquired companies,
started up in new places and invested in different
development projects. These investments
have been aimed at strengthening
our position but they have charged profitability
and cash flow in the short term.
PEAB GROUP’S FINANCIAL GOALS
Goal Comments
Return on equity will be a minimum
of 20 percent
The goal is set to create an effective
business and a rational capital structure
based on Peab´s business.
Equity/assets ratio will be a minimum
of 25 percent
The equity/assets ratio regulates the relationship
between equity and debt. The
goal, which is set to balance the owners’
demands on returns and the need to
safeguard the business during times with
a more difficult market situation, entails
that a minimum of 25 percent of Group
assets are financed through equity.
Dividends will be a minimum of 50
percent of profit after tax
The goal is set to ensure the owners’
return on their contributed capital as well
as meet the company’s need for funds to
develop operations.
In 2012 we have continued to invest in
housing and property development projects
as well as machines. In coming years Peab
will scale down investments below 2012
levels in all our business areas except
Property Development which is under
construction.
OPERATIVE GOALS
Peab consists of a number of different
operations with different conditions and
therefore they have internal goals that fit
each individual business. These goals are
regularly followed up through reports on
projects and profit units. Operative goals
are primarily focused on three areas:
Profitability: This is measured through
the operating margin where we focus
on price-setting and particularly overhead,
as well as through the return on
capital employed in order to ensure
optimal use of the capital tied up in
facilities and project developments.
In recent years returns on equity have fallen largely due
to lower earnings in current operations. At the same time
we have expanded our business which has in the shortterm
charged profitability but will long-term strengthen
our earnings. In 2012 profitability in business areas Civil
Engineering, Industry and Property Development
improved. The result in Construction was charged by
project adjustments and write-downs that totaled SEK
675 million, which had a negative effect on the return on
equity. In 2012 return on equity amounted to 9.2 percent.
The equity/assets ratio goal has been reached or
surpassed in recent years. The high rate of investment
in the past few years has led to a larger balance sheet
total, which has resulted in a lower equity/assets ratio. In
2012 substantial write-downs in construction operations
have, in addition, affected the equity/assets ratio negatively.
The equity/assets ratio amounted to 24.9 percent
per 31 December 2012.
A dividend of SEK 1.60 per share is proposed for 2012.
Calculated as a share of consolidated reported profit
after tax the proposed dividend is 65 percent. The
proposed dividend corresponds to a direct return of 5.2
percent calculated at the closing price on 31 december
2012.
FINANCIAL AND OPERATIVE GOALS
Cash flow and liquidity: Cash flow
before financing must always be positive
in the long-term. Even if this may
deviate for a particular year, the tied up
working capital and investment levels
must, over time, match the cash flow
generated by operative units. The
Group’s liquid funds, including unutilized
credit facilities, amounted to SEK
5.7 billion per 31 December 2012.
Tied up capital: Tied up capital is an
important steering instrument to ensure
that the business is capital effective,
that the Group prioritizes the right project
and that Peab always has the
resources it needs to grow. A Group
level investment team decides on the
business areas’ investments for both
machines and project property. This
keeps the entrepreneurial spirit in our
units intact while ensuring that the
Group’s tied up capital is used
optimally.
Return on equity
%
35
30
25
20
15
10
5
0
2008
2009
Equity/assets ratio
%
35
30
25
20
15
10
5
0
2008
2009
Dividends
%
70
60
50
40
30
20
10
0
2008 2009
1)
2010
2010
2010
Goal >20%
2011
2011
Goal >50%
2011
2012
Goal >25%
2012
2012
1) For 2012, Board of Directors’ proposal.
PEAB ANNUAL REPORT 2012
11

A Nordic Community Builder:
Fewer accidents on straight
roads
E6 Bohus County, June 2012: E6 ties together the financially important regions
Öresund, Gothenburg and Oslo. The highway has been notoriously crowded in Bohus
County where heavy traffic, tourists and residents jostle shoulder to shoulder. The worn
road has entailed major traffic problems and caused accidents. In June 2012 Peab opened
new stretches of E6 that were now rerouted to keep heavy, through traffic off city streets.
Through this project business areas Industry and Civil Engineering have laid yet another
piece of the community puzzle that brings Nordic people closer to each other.
Read more about E6 Bohus County at www.peab.se/E6-bohuslan
E6
Bohus County
12 PEAB ANNUAL REPORT 2012

Board of Directors’ Report
NET SALES 1)
Group operative net sales for 2012
increased from SEK 44,015 to 45,997
million, which was an increase of 5 percent.
Net sales in all the business areas increased.
This increase is due to a relatively good
market at the beginning of the year and a
high level of production throughout the
year. After adjustments for acquired and
divested units operative net sales increased
by 5 percent compared to the last year.
The adjustment in housing reporting
affected net sales by SEK 843 million
(-476). Reported Group net sales for 2012
therefore increased by 8 percent to SEK
46,840 million (43,539).
Of the year’s net sales, SEK 9,551
million (7,616) were attributable to sales
and production outside Sweden, which
means that the Group has expanded its
Nordic presence.
PROFIT 1)
Operative operating profit for 2012 was
SEK 1,002 million compared to SEK 1,483
million last year. The adjustment in housing
reporting affected operating profit by SEK
53 million (22). Reported operating profit for
2012 therefore amounted to SEK 1,055
million (1,505). The lower operating profit is
largely due to project adjustments and
write-downs in business area Construction
for a total of SEK 675 million, consisting of
SEK 300 million for Tele2 Arena in Stockholm
and SEK 375 million in Norway.
Underlying earnings in construction are
Operative net sales
MSEK
50,000
40,000
30,000
20,000
10,000
0
2008*
2009
2010
2011
* Pro forma including Peab Industri
2012
BOARD OF DIRECTORS’ REPORT
The Board of Directors and the Chief Executive Officer of Peab AB (publ),
Corporate ID Number: 556061-4330, hereby submit the following annual
report and consolidated accounts for the 2012 financial year.
stable but too low. An action plan to restore
profitability was therefore initiated during
the year. The other three business areas
Civil Engineering, Industry and Property
Development have developed positively
during the year and operating profit
increased in all of them.
The operative operating margin was
2.2 percent compared to 3.4 percent in
2011. Corrected for project adjustments
and write-downs for a total of SEK 675
million underlying Group operative operating
margin amounted to 3.6 percent (3.4).
Depreciation for the year was SEK 848
million (803).
Net financial items amounted to SEK
-242 million (-310), of which net interest
expense amounted to SEK -294 million
(-234). Received dividends were SEK 46
(20) million during the year. The effect of
valuing financial instruments at fair value
affected net financial items by SEK 39
million (-78). The income effect of valuing
the Brinova holding at fair value until its
divestiture in the third quarter amounted to
SEK 27 million (-81), which explains most
of the improvement in net financial items.
Pre-tax profit amounted to SEK 813
million (1,195).
Tax for the year was SEK -88 million
(-252). Tax was affected by the sales of property
projects through the divestiture of shares
where the gains are not taxable. There have
also been positive tax effects due to the
lowered tax rate in Sweden, which affected
deferred tax positively by SEK 80 million.
Operative operating profit and
margin
MSEK %
3,000
2,500
2,000
1,500
1,000
500
0
2008* 2009
2010
Profit for the year amounted to SEK 725
million (943).
FINANCIAL POSITION
The equity/assets ratio on 31 December
2012 was 24.9 percent compared to 25.4
percent at the previous year-end, which
is in line with the Group financial goal.
Interest-bearing net debt amounted to SEK
6,470 million (6,626). During the year Peab
has continued to invest in housing and
property developments as well as machines.
Net debt decreased during the fourth
quarter by around SEK 1,600 million as a
result of property sales, settling receivables
in partly owned projects and the divestiture
of the Catena holding.
The average interest rate in the loan
portfolio including derivatives was 2.9
percent (3.5) on 31 December 2012.
Group liquid funds, including non-
utilized credit facilities, were SEK 5,661
million (4,944) at the end of the year.
INVESTMENTS
Net investments of tangible and intangible
assets increased from SEK 906 million to
SEK 925 million during the year. Project
and development properties were acquired
for a total of SEK 822 million (273) during
the year.
CASH FLOW
Cash flow from current operations was SEK
503 million (60). The acquisition of project
and development property for SEK -989
Equity/assets ratio 1)
%
35
30
25
20
15
10
5
0
2008
Goal >25%
1) Peab applies IFRIC 15, Agreements for the Construction of Real Estate, in legal reporting. As a result IAS 18, Revenue, will be applied to Peab’s housing projects in Finland and
Norway as well as Peab’s own single homes in Sweden. Revenue from these projects will be recognized first when the home is handed over to the buyer. Segment reporting is
based on the percentage of completion method for all our projects since this mirrors how executive management and the Board monitor the business. There is a bridge in
segment reporting between operative reporting according to the percentage of completion method and legal reporting. Operative net sales and operative operating profit are
reported according to the percentage of completion method. Net sales and operating profit are reported according to legal accounting.
2011
* Pro forma including Peab Industri
2012
6
5
4
3
2
1
0
2009
2010
2011
1) According to legal accounting
2012
PEAB ANNUAL REPORT 2012
13
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
BOARD OF DIRECTORS’ REPORT
million (-682) is also included in the cash
flow from current operations.
Cash flow from investment activities
was SEK 471 million compared to SEK
-1,131 million the previous year. The year
has been affected positively by divestitures
of property and settling interest-bearing
receivables in partly owned projects as well
as the disposal of the holdings in Brinova
and Catena. During the year investments
in housing and property development projects
and in machines have continued.
The redemption of futures for shares in
Lemminkäinen Oyj has affected cash flow
by the cash paid for shares. The previous
year was characterized by broad expansion
with investments in all our operations.
Cash flow before financing amounted
to SEK 974 million compared to SEK -1,071
million last year.
ORDERS RECEIVED AND ORDER
BACKLOG CONSTRUCTION AND
CIVIL ENGINEERING
Orders received in 2012 amounted to SEK
38,743 million compared to SEK 37,986
million in 2011. Included in orders received
for Construction is Peab’s single largest
project ever, the Mall of Scandinavia in
Solna, as well as housing connected to
Arenastaden and other housing projects
located primarily in major Nordic cities.
Business area Construction has received
new orders for a number of shopping
centers, new construction or renovation of
hotels in Sweden and several other large
projects such as a new stage of MAX IV
laboratory in Lund.
Some of the orders received in the
Orders received and order backlog
Orders received Order backlog
2012 2011 31 Dec 31 Dec
MSEK
2012 2011
Construction 27,185 27,841 20,132 20,578
Civil Engineering 12,729 11,350 8,610 8,526
Eliminations –1,171 –1,205 –686 –726
Group 38,743 37,986 28,056 28,378
Return on equity 1)
%
35
30
25
20
15
10
5
0
2008
2009
2010
2011
1) According to legal accounting
14 PEAB ANNUAL REPORT 2012
Goal >20%
2012
Environmentally
classified senior
and sheltered
housing
The demand for secure and comfortable
housing is growing as the average age of
populations rises. Peab is building senior and
sheltered housing in several places in
Sweden. One example is Sala where the fourfloor,
80 room building has been environmentally
classified as a Miljöbyggnad (Environmental
Building) Gold. The concept Miljöbyggnad
documents important qualities in a
building regarding energy, indoor environment
and material. A building can be given one of
three rankings and Gold is the highest.
Net investments incl. project
and development property
MSEK
8,000
6,000
4,000
2,000
0
2008* 2009
2010
2011
2012
* Including the effect of the acquisition of
Peab Industri
business area Civil Engineering were for
local industries, new maintenance contracts
for roads and extensions of Nordic
roads. We also received an order from
SSAB for an extension of the deep harbor
in Oxelösund and a number of orders from
the mining industry.
Order backlog yet to be produced at the
end of the year amounted to SEK 28,056
million (28,378). Although the number of
orders received increased in 2012 compared
with 2011, the high rate of production
during the year meant that the order backlog
was slightly lower at the end of 2012
than at the end of 2011.
Of the total order backlog, 30 percent
(24) is expected to be produced after 2013.
Swedish operations accounted for 87
percent (86) of the order backlog.
No orders received or order backlog is
given for the business areas property
Development and Industry.
COMMENTS ON THE BUSINESS
AREAS
As of 1 January 2012 the Peab Group is
presented in four different business areas:
Construction, Civil Engineering, Industry
and Property Development. The business
areas are also operating segments.
Comparable figures for the year 2011
have been translated into the new business
areas. Construction of our own development
projects is presented in segment
reporting according to the percentage of
Orders received and order backlog
Construction and Civil Engineering
MSEK MSEK
40,000
30,000
20,000
10,000
Cash flow before financing
Mkr
0
1,200
900
600
300
0
-300
-600
-900
-1,200
-1,500
2008
2008*
2009
2009
2010
2010
2011
2011
2012
* Including the effect of the acquisition
of Peab Industri
2012
40,000
30,000
20,000
10,000
Order backlog per 31 Dec Order intake
0

completion method. Unrealized internal
profits and net sales are eliminated within
the Group. When our own housing development
projects are divested these effects are
returned to the Group and the capital gains
from the sales are reported in business
area Property Development. Read more
about our business areas on pages 16-27.
In addition to the business areas, central
companies, certain subsidiaries and
other holdings are presented. The central
companies primarily consist of the parent
company Peab AB and Peab Finans AB.
Peab AB’s operations consist of executive
management and shared Group functions.
The internal bank Peab Finans AB handles
the Group’s liquidity and debt management
as well as financial risk exposure. The company
is also a service function for the subsidiaries
and works out solutions for loans
and investments, project-related financing
and currency risk hedging.
Operating profit for the year for Group
functions was SEK -232 million (-210).
Net sales and operating profit per business area
Net sales Operating profit Operating margin
MSEK 2012 2011 2012 2011 2012 2011
Construction 27,992 27,822 –13 600 0.0% 2.2%
Civil Engineering 12,643 11,554 440 390 3.5% 3.4%
Industry 10,723 10,404 788 693 7.3% 6.7%
Property Development 345 189 51 31 14.8% 16.4%
Group functions 109 132 –232 –210
Eliminations –5,815 –6,086 –32 –21
Operative 1) 45,997 44,015 1,002 1,483 2.2% 3.4%
Adjustment in housing reporting 2) 843 –476 53 22
Legal 46,840 43,539 1,055 1,505 2.3% 3.5%
1) According to percentage of completion method (IAS 11).
2) Adjustment of the accounting principle for own homes in Sweden and housing in Finland and Norway to the completion method (IAS 18).
Industry,
21% (21%)
Civil
Engineering,
24% (23%)
Share of Group operative
net sales, 2012
Property Development, 1% (0%)
Construction,
54% (56%)
STOCKHOLM WATERFRONT
Stockholm
Share of Group operative
operating profit, 2012
Property Development, 4% (2%)
Industry,
62% (40%)
Construction,
–1% (35%)
Civil
Engineering,
35% (23%)
BOARD OF DIRECTORS’ REPORT
Property Development, 1% (0%)
Industry,
21% (20%)
Civil
Engineering,
25% (25%)
Share of Group
employees, 2012
Construction,
53% (55%)
PEAB ANNUAL REPORT 2012
15
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
Business area Construction –
everything from construction
maintenance to extensive
community projects
With many years of experience from all kinds of projects
Peab’s construction operations offer customers a wide range
of expertise and cost-efficient solutions. Business area
Construction provides complete service in housing, building
construction, construction maintenance and project development.
Operations comprise everything from construction
service and renovation to developing entire city blocks.
16 PEAB ANNUAL REPORT 2012
ÄLVSJÖ RESECENTRUM
Älvsjö

A year of challenges
NET SALES AND RESULTS
Operative net sales for 2012 increased
marginally by around one percent from SEK
27,822 to 27,992 million.
Operative operating profit for the year
amounted to SEK -13 million compared to
SEK 600 million in 2011. The drop in operating
profit is due to the project write-down
for Tele2 Arena in Stockholm which charged
profits by SEK 300 million. Construction
operations in Norway and Finland charged
profits through higher costs and lower earnings
in ongoing production. In the second
quarter two projects in the Norwegian operations
were written down by SEK 125 million.
A revision of Norwegian construction
operations was completed in the fourth
quarter. This led to project adjustments and
write-downs for a total of SEK 250 million
attributable to write-downs in goodwill and
receivables, a revaluation of disputes in a
number of finished projects in the Oslo
region and write-downs of development
property.
The operative operating margin sank to
0 percent compared to 2.2 percent last
year. Adjusted for the previously mentioned
project adjustments and write-downs of
SEK 675 million, the operating margin was
2.4 percent (2.2). This shows a stable
development during the year but nonetheless
underlying earnings are too low.
An action plan in progress will
restore profitability
Our expansion over the past few years,
together with a wave of retirements, has
entailed a great number of new employees
and operations, and this requires more of
our organization and leadership. We have
initiated an action plan aimed at improving
profitability by methodically developing our
leadership, project organization and
Business area Construction in summary
The business is run in five geographic divisions
in Sweden, one division in Norway, one
in Finland and a new Nordic division, Special
projects that specializes in larger, complex
projects.
MARKET SEGMENT
Contract construction: Builds commercial
and public facilities as well as industrial premises
such as offices, shopping malls, arenas,
schools and hospitals for private, municipal
and federal customers.
Construction maintenance: Works with
maintenance, repairs, insurance claims,
service to real estate companies and industries
and smaller contracts. Customers are
Gothia Towers
Gothenburg – high
level logistics
The 24 meter long main body of the bridge
that connects the two Gothia Towers is being
lifted into place here. This is high level logistics.
Another logistics challenge is handling all
the material being transported in and out of
the busy city. Solving this type of complex
problem in a cost-efficient and environmentally
friendly way has become Peab’s hallmark.
Since 2012 Peab has been working on both
expanding the existing hotel and conference
facility Gothia Towers and building a completely
new tower with 500 hotel room. This will make
it the largest hotel in Sweden. The project is
being carried out at the same time daily
activity in the hotel and conference facility
continues as usual, and work hours are stringently
regulated to disturb the hotel environmental
as little as possible. Completion of the
new hotel tower is projected for the year-end
2014/2015.
internal processes. This will, among other
things, lead to a greater focus on profitability
when choosing projects, ensure the
Group has the right resources for the
projects we take on and that follow-up and
control of ongoing projects functions well.
usually local although we have some nationwide
Group contracts.
Housing: Produces all kinds of housing which
includes apartment buildings with tenantowners,
condominiums and rentals. We also
have a certain amount of single home
construction. Customers are commercial and
municipal players. We initiate our own projects
in housing development that are then sold to
private homeowners. Project development and
ownership of apartments for rent are handled
in business area Property Development.
CUSTOMERS
Peab has a number of Group customers on the
Nordic market such as IKEA, McDonald’s and
BUSINESS AREA CONSTRUCTION
Weaker development in housing
New production of Peab’s own housing
developments made up 8 percent of net
sales in 2012 compared to 11 percent last
year.
Developments continued to be weak in
the housing market. Only in Stockholm,
Gothenburg and Helsinki are operations
running more or less on a normal level. Own
housing development start-ups were 1,679
(1,711). During the fourth quarter two major
housing projects, one in Solna and one in
Bromma with a total of some 300 apartments,
were started up. The number of sold
homes during the year was 1,738 compared
to 1,531 during 2011. The number of our
own homes in production at the end of the
year was 3,134 compared to 3,470 at the
previous year-end. The share of sold homes
in production was 72 percent compared to
73 percent at the end of 2011.
The current financial turbulence and
the ceiling on mortgages in Sweden have
entailed longer sales processes. This has a
negative effect on our ability to start up new
projects, given the requirements for presales
at the start of production. The housing
demand is affected by several factors
such as demography, the economy, interest
rates and access to housing loans. All in all
these factors indicate a good demand in the
long-term for housing with different kinds of
ownership forms and we have noticed the
demand for apartment buildings with rentals
continues to be strong.
The number of repurchased homes on
31 December 2012 was 191 compared to
183 per 31 December 2011.
ORDERS RECEIVED AND
ORDER BACKLOG
Orders received for 2012, which included
Peab’s single largest project ever - the Mall
Nordic Choice Hotels. Some new customers in
construction maintenance for the year are
Scania Real Estate and Volvo. Other large
customers are real estate companies, municipalities,
county council and municipal real
estate companies, private customers like
insurance companies and smaller regional
and local customers. Business area Property
Development is also an important customer.
OTHER IMPORTANT PLAYERS
Some of the important players on the market
are Skanska, NCC, JM, Lemminkäinen, YIT
and Veidekke.
PEAB ANNUAL REPORT 2012
17
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
BUSINESS AREA CONSTRUCTION
of Scandinavia in Solna, were lower than
in 2011. Production of ongoing projects
has been rapid in recent years and order
backlog at the end of the year amounted
to SEK 20,132 million (20,578).
COMMENTS ON THE YEAR
The rate of production during the year was
high. We worked in more than half of the
municipalities in Sweden. The large
projects initiated in 2012 were spread all
over our geographic operational area from
the very north to the very south of Sweden,
in Norway and in Finland. We started
construction on senior housing in Nyköping
and Sala, stores in Uddevalla, Stockholm,
Älmhult, Luleå and Kristianstad. We began
hotel projects in Gothenburg, Malmö and
Stockholm, a multi-hall in Vardö in the very
north of Norway, a post office terminal in
Sigtuna, a facility for traffic safety in Borås,
Important projects and events
Friends Arena, Sweden’s new national
arena in Solna was completed and inaugurated
in October. Demolition of the old
arena, Råsunda, began after the inauguration
and this area is now being planned
for housing. Construction of housing in
Arenastaden and Sweden’s largest shopping
center the Mall of Scandinavia commenced.
Steen & Ström commissioned Peab to
build the new Gallerian in Kristianstad.
The first stage of the technically complicated
laboratory Max IV in Lund was completed
and a new contract for the second
stage was signed.
Peab was commissioned by Nyköping
Municipality to build 146 apartments for
senior and sheltered housing in Nyköping.
The unit will also contain an assembly
room, workshops for day activities, a restaurant
with a kitchen and personnel and
office space.
Together with Peab’s other business
areas Construction will continue to work
for Northland Resources in the Kaunis-
18 PEAB ANNUAL REPORT 2012
Jesper Göransson, acting Business Area Manager Construction
Strategic priorities
•
•
•
•
•
Greater focus on profitability such as closely monitoring the action plan
initiated in 2012.
Careful selection and prioritization of projects in order to optimize margins.
Continued development of customer concepts, industrial construction and
standardization and industrialization of all our processes and systems.
Greater cooperation with customers through, for instance, Trust-based
contracts that create value for all parties.
Continued focus on human capital, particularly by continuously improving
safety.
the Emil i Lönneberg site in Vimmerby and
much more. This list clearly demonstrates
the wide range of Peab’s building production.
Arenastaden in Solna is one of Peab’s
largest worksites and a great deal happened
there in 2012. The spectacular inauguration
of Friends Arena generated an
enormous amount of attention and we
began construction of the Mall of Scandinavia,
a project all Peab’s business areas are
involved in.
During the year a whole new division
was created; Special projects. Here we
have collected our top notch expertise in
the production of special projects like the
Mall of Scandinavia and IKEA department
stores.
Peab has also continued to develop
logistic systems. Not only large projects but
nearly every worksite is affected by this. By
vaara mine. One new project is the construction
of a concentrator. For more
information on Northland Resources,
see page 34, Important events after yearend.
Events after the end of
the period
After a revision of the Norwegian operations,
which resulted in project write-downs and in
order to further improve profitability in Business
Area Construction, leadership in the
business area has been reinforced. As of 1
January 2013 Tore Hallersbo is responsible for
the further development of divisions Norway,
Finland and Special Projects. With its
specialist expertise Division Special Projects
will support operations in Norway throughout
the entire production process. As of 8 April
2013 Roger Linnér is the operative manager
for the Swedish construction divisions and
business area staff. As of March 2013 Jesper
Göransson is acting Business Area Construction
Manager.
improving logistics we can make major
savings in the environment, costs, time and
more.
Continued development
of standardized concepts
In line with the strategy for the whole Group
to strengthen and develop Peab’s customer
relations we have continued to develop our
customer concepts during the year: Bolyftet,
Peab Småhus and Annehem, and we
launched a new one, Housing for Youths.
Bolyftet is a comprehensive concept
for sustainable refurbishment of the housing
projects from the 60s and 70s. The concept
balances social, financial, environmental
and energy conservation aspects. In
addition to specially designed construction
and energy technique solutions, as well as
financing alternatives, the concept contains
measures to make the housing projects in
need of upgrading safer and nicer, and cre-
Operative net sales
MSEK
30,000
25,000
20,000
15,000
10,000
5,000
Operative operating profit and margin
MSEK
1,200
1,000
800
600
400
200
0
0
2008
2008
2009
2009
2010
2010
2011
2011
2012
Operating profit Operating margin, %
2012
%
6
5
4
3
2
1
0

ate jobs there. Two examples of projects
that were initiated during the year were
Vallby in Västerås and Rosengård in Malmö.
Peab Småhus is a concept for terrace
houses, link houses and single homes.
Based on a common technological platform
the house models are developed with customers
in mind. Prefabricated houses with
low energy consumption are built efficiently
and safeguarded from dampness. Thousands
of single homes are in the planning
stage within a 5-7 year horizon. During the
year two projects were initiated, one in Ale
municipality and one in Västerås.
Annehem is a concept for Senior,
Sheltered and Nursing Home housing
where Peab, together with our partners who
are municipalities and real estate companies,
offer turnkey senior housing including
associated facilities for services and activities
in the buildings. During the year 63
apartments in Kristianstad were built based
on PGS (Peab General System).
A new customer concept was also initiated
during the year called “Housing for
Youths”. The idea is to make it possible for
large numbers of young people to move
away from home by building apartments
with cost-efficient production. The methods
are many and include rationalizing living
space and smart interior solutions. A precursor
to the concept is being built in Arenastaden
in Solna. Almost 60 percent of
those who have booked an apartment are
born in the 1980s or 90s. Many of them are
first-time buyers.
PGS (Peab General System) is a
module-based construction system. PGS
develops and delivers a flexible system of
Efficient logistics
Modern, customized logistics are key to efficient
construction projects. Well thought-out
logistics with clear and specific demands on
times, places and methods are exacting but
they are also good for profits and the environment.
Peab’s concept for efficient logistics
requires real commitment from everyone on a
worksite. Every project tailors its model based
on plain common sense. An example of a
project where logistics functioned well is
Stockholm Waterfront which Peab built next
to Kungsbron in Stockholm.
construction components that are manufactured
in a factory and mounted on site into a
complete apartment building. In other
words, PGS entails industrial construction
from fabrication to finished building. The
result is shorter construction times and
high, uniform quality in attractive, energy-saving
and environmentally friendly
housing. Some of our ongoing and future
Key ratios 2012 2011
Operative net sales, MSEK 27,992 27,822
Operative operating profit, MSEK –13 600
Operative operating margin, % 0.0 2.2
Orders received, MSEK 27,185 27,841
Order backlog on 31 December, MSEK 20,132 20,578
Number of employees 7,384 8,169
Own housing development production 2012 2011
Number of housing starts during the year 1,679 1,711
Number of homes sold during the year 1,738 1,531
Total number of homes under construction, at year end 3,134 3,470
Share of sold homes, at year end 72% 73%
Number of repurchased tenant-owned rights/shares in
Finnish companies in the balance sheet, at year end 191 183
BUSINESS AREA CONSTRUCTION
projects are: Sheltered Home “Översten” in
Västerås, the rental apartments “Pippi” in
Malmö and the tenant-owned apartments
“Eklyckan” in Mölnlycke.
THE MARKET
Developments in Swedish building
construction start-ups were slow in 2012,
despite a relatively strong start at the beginning
of the year. This is primarily due to the
weak development in start-ups in private
and public premises during the second half
of the year. We can already see that
housing production does not meet the need
for new homes. This leads to a growing
housing shortage, which hampers development
on the labor market and can even
affect economic growth. A large part of the
investments made over the next few years
will in all probability be in maintenance and
repair.
Norwegian building construction startups
have had stable growth in 2012,
although not at the same high rate as previous
years.
As a result of a dramatic drop in building
construction start-ups in Finland during
the third quarter developments in 2012
were slightly down from the previous year.
Maintenance and repairs have developed
stably in Sweden, Norway and
Finland. This market is less sensitive to
ups and downs in the economy.
Operative net sales 2012 per type of
operations
Construction
maintenance,
10% (11%)
Renovation,
24% (24%)
Other, 2% (3%)
New construction,
64% (62%)
PEAB ANNUAL REPORT 2012
19
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
Business area Civil Engineering
– infrastructure production and
maintenance
Peab is a major player in civil engineering in Sweden,
Norway and Finland. The business area builds and maintains
roads and railroads, bridges and other infrastructure. Civil
Engineering works with operation and maintenance in more
than half of Swedish municipalities as well as with road
main tenance in many operational areas.
20 PEAB ANNUAL REPORT 2012
FORSBACKABRON
Söderhamn

MARKET SEGMENTS
Local market: Does landscaping and pipelines,
foundation work and builds different
kinds of facilities.
Infrastructure and heavy construction:
Builds roads, railroads, bridges, tunnels
and ports as well as industrial plants.
Operation and maintenance: Operation and
maintenance of national and municipal
highway and street networks, parks, outdoor
property caretaking as well as the operation of
sewage and water supply networks.
CUSTOMERS
Local market: Customers are usually municipalities,
local businesses and energy companies.
Infrastructure and heavy construction:
Customers are usually national traffic administrations,
municipalities and industrials. The
mining industry, with companies like LKAB,
Northland Resources and Boliden, is another
large customer group.
Operation and maintenance: Customers are
usually national traffic administrations, municipalities
and property owners.
BUSINESS AREA CIVIL ENGINEERING
Continued growth with improved margins
NET SALES AND RESULTS
Net sales for 2012 rose from SEK 11,554
million to SEK 12,643 million, which is an
increase of 9 percent. Even after adjustments
for acquired units the increase was
9 percent. This growth is primarily due to
public and private investments.
The Local market shows positive developments
in net sales as a result of a highly
active construction market. The increase in
net sales combined with improved productivity
affected the operating result positively.
Net sales also increased in Operation
and maintenance. Nonetheless operating
profit was lower than last year. This is primarily
a result of a weak start at the beginning
of the year and tougher competition
from other players which led to low prices
on the market.
Net sales and operating profit in Infrastructure
and heavy construction were
lower than last year. This business is
dependent on political decisions which
means net sales can vary from year to year.
There were relatively few new projects in
2012. The lower level of activity affected
operating profit negatively which was also
charged by write-downs in some ongoing
projects.
The business area’s operating profit for
the year increased from SEK 390 million to
SEK 440 million and the operating margin
increased to 3.5 percent (3.4).
This means that the trend of higher net
sales and improved margins in the past few
years continues. Two forces behind this are
the positive developments in the market
and our systematic work to improve produc-
Business area Civil Engineering in summary
Net sales per business segment, 2012
Infrastructure and
heavy construction
29% (32%)
Operations and
maintenance
20% (20%)
Local
market
51%
(48%)
Collaboration
creates effective
solutions
Peab is expanding Fagernes terminal for
Northland Resources in the Port of Narvik in
Norway. The work includes building a pier, a
heated loading facility for freight cars, a
storage building and facilities for loading
ships. Under the Cliffton brand Peab is also
trucking the iron ore mined in Kaunisvaara to
the reloading terminal in Pitkäjärvi outside
Svappavaara. There the iron ore is reloaded
onto freight trains and transported on the
Malmbanan railroad to Narvik.
Our collaboration with Northland shows
how three cooperating business areas under
the leadership of Peab Civil Engineering can
build up an infrastructure in a cost-efficient
and environmentally friendly way that is beneficial
to the community.
tivity in the entire business area. Another
contributing factor is the broad range of services
the business area offers which makes
it possible to shift resources to the sectors
where demand is the most at the moment.
In the short-term this means better capacity
utilization. In the long-term it makes it easier
to retain our employees, which is crucial
to consistent and sustainable profitability.
ORDERS RECEIVED AND
ORDER BACKLOG
The level of orders received increased by
12 percent in 2012 to SEK 12,729 (11,350).
Due to an intense production of new orders
the outgoing order backlog only grew
marginally and at the end of 2012 it was
SEK 8,610 million (8,526).
COMMENTS ON THE YEAR
During the year work on analyzing the
tendering process and project management
intensified. Procedures in connection with
tenders on new projects have been overhauled
to ensure that calculations are
correct and that there is enough suitable
competence and other resources available
for the project. In other words, we will not
take on projects that do not have the
prerequisites to generate a satisfactory
profit.
Operation and maintenance is an
important area for Peab. In order to clarify
and draw attention to Peab’s offer in the
area of road maintenance and showcase
that we are an important player, a new
national brand, Peab Operation & Maintenance,
was created in 2012. We make and
take care of parks, places to swim, playgrounds,
locks and harbors, keep traffic
flowing, keep places clean, clear snow
away and sweep sand all over Sweden.
OTHER IMPORTANT PLAYERS
Local market: Local companies and big
companies with local presence such as
Skanska, Svevia and NCC.
Infrastructure and heavy construction:
Skanska, NCC, Veidekke, Lemminkäinen
and Svevia. In addition, international, mostly
European, companies such as Strabag and
Hochtief are involved in certain market
segments.
Operation and maintenance: Skanska, NCC,
Svevia, Mesta and others.
PEAB ANNUAL REPORT 2012
21
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
BUSINESS AREA CIVIL ENGINEERING
The Norwegian operations have developed
well during the year. The Swedish business
model has been implemented and the
exchange of experience has intensified.
Among other things, Swedish production
management has worked in Norway. Two
important projects during the year have
been the extension of the harbor in Narvik
and major road construction outside Trondheim
for Statens Vegesen.
Capacity in Finland has been adjusted
to current demand. Implementation of the
Swedish model has also been prioritized.
Roger Linnér who has worked at Peab
since 1996, mostly in Civil Engineering,
took over after Tore Nilsson, who was
previously Business Area Manager, on
1 January 2013.
Important projects and events
Handling iron and granite as well as
goods at LKAB’s mine Gruvberget in
Svappavaara will continue until September
2014.
Construction of a test facility for traffic
safety at AstaZero outside Borås.
Several major highway projects were
underway during the year: Two stages of
E6 in Bohuslän as well as Österleden in
Helsingborg, E4 Sundsvall, Väg 22
between Rolsberga and Fogdarp in Skåne
and the first major road project in Norway
- E6 outside Trondheim.
Several contracts were signed with the
Swedish Transport Administration for the
operation and maintenance of roads in
some fifty different operational areas in
the middle of Sweden.
Peab Operation & Maintenance, a new
national brand, was created to clarify and
draw attention to Peab’s offer in the area
of road maintenance.
Peab was commissioned by the Swedish
Transport Administration in February 2013
to extend the railroad line Barkaby–Kallhäll
which is part of the Mälarbanan project.
22 PEAB ANNUAL REPORT 2012
Roger Linnér, Business Area Manager Civil Engineering
Strategic priorities
•
•
•
•
Continued work on improving profitability through stricter cost control,
regular reviews of our offer and better tendering procedures.
Higher personal responsibility for making sure regulations for a safe work
environment, which also has a direct effect on profitability, are followed.
Better cost efficiency through specialization in selected market segments
and tailored, effective support functions.
Greater flexibility to better handle variations in demand.
Civil engineering for
growing transportation
For years now necessary railroad extensions
have not been made even though the advantages
of this form of transportation are many, particularly
in regards to sustainability, and therefore
investments in railroads are expected to pick up.
Peab has been commissioned by the Swedish
Transport Administration to build a new doubletrack
stretch of the railroad between Motala and
Mjölby that will augment the capacity and punctuality
of trains. This includes building bridges and
developing the station area.
Net sales
MSEK
15,000
12,000
9,000
6,000
3,000
0
2008
2009
2010
2011
2012
THE MARKET AND FORECASTS
Civil engineering construction in Sweden
has gone against the trend in building
construction and developed well in 2012.
This is due to private and government
investments in developing and maintaining
public infrastructure.
Civil engineering construction in Norway
developed favorably in 2012 as well.
In Finland the total volume of civil engineering
in 2012 was unchanged compared
to the previous year.
Key ratios 2012 2011
Net sales, MSEK 12,643 11,554
Operating profit, MSEK 440 390
Operating margin, % 3.5 3.4
Orders received, MSEK 12,729 11,350
Order backlog on 31 December, MSEK 8,610 8,526
Number of employees 3,553 3,664
Development 2012 vs 2011
Local market
Net sales Operating profit
Operations and maintenance
Infrastructure and heavy construction
Operating profit and margin
MSEK
500
400
300
200
100
0
2008
2009
2010
2011
2012
Operating profit Operating margin, %
%
5
4
3
2
1
0

BUSINESS AREA INDUSTRY
Business area Industry
– a strategic resource for the
construction and civil
engineering industries
We deliver material, equipment and services to external customers
and internally to Peab’s construction and civil engineering
projects. Thanks to our well known brands, industrialized
operations, strategically placed gravel and rock quarries and
production units we are leaders on the Nordic market.
PEAB ANNUAL REPORT 2012
23
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
BUSINESS AREA INDUSTRY
High capacity utilization
NET SALES AND RESULTS
Net sales in 2012 increased from SEK
10,404 million to SEK 10,723 million, which
is an increase of 3 percent. After adjustments
for acquired and divested units the
increase was 2 percent.
Operating profit for the year increased
from SEK 693 million to SEK 788 million
and the operating margin increased thereby
to 7.3 percent (6.7).
Due to the high level of activity in the
construction and civil engineering markets,
net sales increased in almost all the business
segments, with the exception of
Asphalt and Gravel and rock. Gravel and
rock was hit by fewer infrastructure projects
and Asphalt struggled on a market weighed
down by overcapacity, which had a negative
effect on Peab’s volumes.
Thanks to high capacity utilization
results were higher in all the business segments
except Concrete compared to last
year. The lower result in Concrete is due to
a shrinking market where greater competition
led to lower prices.
COMMENTS ON THE YEAR
Having gravel and rock quarries close to
growth regions is important for the business
area’s continued expansion, which is why
we continue to prioritize the planning and
Business area Industry in Summary
MARKET SEGMENT
Asphalt: Manufactures and lays asphalt.
Concrete: Works with ready-mixed concrete
and pumping concrete.
Gravel and rock: Production and delivery of
ballast material as well as raw materials for
asphalt and concrete production.
Transportation and machines: Rental and
supply of transportation and machine services.
A new unit was started up in Transportation
and machines: Mining which supplies the
mining industry with material and services in
connection with establishing and running
mines.
Net sales per business segment, 2012
Industrial construction, 4% (3%)
Rental,
16% (16%)
Foundation
work, 8% (7%)
Transport and
machines, 27% (27%)
24 PEAB ANNUAL REPORT 2012
Asphalt,
25% (26%)
Concrete,
13% (13%)
Gravel and rock,
7% (8%)
developing of new quarries. During the year
eight new quarries were opened.
Significant investments in better
machines such as new tower cranes and
machines for the mining industry continued
in 2012. We also invested in a new concrete
factory and several mobile factories.
Several companies were acquired in
2011 and they were integrated into the
New gravel and rock
quarries open up for
expansion
During the year several new quarries, among
them one in Hästeryd in Alingsås, were
opened. Opening a new quarry is always
preceded by years of work that includes
extensive environmental testing. Strategically
placed quarries next to growth regions is the
foundation of local expansion.
Foundation work: Foundation work, pile
production, pile-driving, tonguing, drill plinths.
Rentals: Offers a broad range of rentals of
construction machines, work wagons, scaffolding,
construction cranes, mobile cranes,
crane trucks, construction elevators, temporary
installations, electrical material and
generators as well as provides services in
energy technology.
Industrial construction: Delivers prefabricated
concrete elements
MAJOR CUSTOMERS
Some of our major customers are the Swedish
Share of net sales, 2012
Internal sales
38% (37%)
External
sales
62% (63%)
business area last year. This led to a reorganization
of operations so that the entire
business area can take advantage of our
collective competence.
The construction and civil engineering
sectors are being standardized and rationalized
to reduce costs and environmental
impact. Industrialization of the business
area’s processes therefore continued.
Sustainability work is essential to
attracting both customers and new employees.
A program to minimize energy consumption
and reduce environmental impact
and thereby make operations more cost-
efficient was launched in 2012.
More foreign players on the Norwegian
market do not just mean more competition.
They also give rise to new business opportunities.
During the year we began developing
comprehensive solutions for international
companies using Industry’s entire
range of products and services. We have
bolstered our expertise in certain technology
during the year in order to meet customers’
demands in areas like solidification,
additives and binders as well as logistics.
THE MARKET
The outlook for business area Industry is
pretty much the same as for the construction
and civil engineering sectors.
Transport Administration, Norwegian Public
Roads Administration, municipalities, heavy
industry and other construction companies. A
number of international companies that want
to start up in the Nordic region have also
shown interest in our products and services.
Big mining companies like LKAB and Northland
Resources as well as smaller mines in
the middle of Sweden are also customers.
OTHER IMPORTANT PLAYERS
Asphalt, Gravel and rock: NCC, Skanska,
Svevia, Lemminkäinen, Veidekke.
Concrete: Betongindustri, Färdigbetong
Skanska, Sydsten, Finja and Strängbetong.
Foundation work: Per Aarsleff, Hercules,
Skanska and Kynningsrud.
Transportation and machines: BDX and
DSV along with a number of local contractors
and trucking companies.
Rentals: Cramo, Ramirent, Skanska Maskin,
BDX, Havator, Nordic Crane Group, ED
Knutsen Maskin and a number of smaller,
local players.

The past few years’ strong housing
construction in Sweden, Norway and
Finland declined in all three countries in
2012. The market in other building
construction weakened in Sweden in 2012
while there was some growth in Norway.
Civil engineering investments increased
throughout the Nordic region in 2012 due
to significant needs in energy and communications.
The mining industry also developed
well with the start up of several new
mines.
Important projects and events in 2012
Strategic priorities
Start up of a new unit, Mining, in Transportation and machines to meet the demand
in the mining industry.
Several new rock and gravel quarries were opened, among them in Växjö and
Södertälje.
A new concrete factory was established in Helsinki and several mobile concrete
factories were started, among them one in Narvik.
Key ratios 2012 2011
Net sales, MSEK 10,723 10,404
Operating profit, MSEK 788 693
Operating margin, % 7.3 6.7
Number of employees 2,944 2,953
Development 2012 vs 2011
Asphalt
Net sales Operating profit
Concrete
Gravel and rock
Transport and machines
Foundation work
Rental
Industrial construction
Karl-Gunnar Karlsson, Business Area Manager Industry
•
•
•
•
•
BUSINESS AREA INDUSTRY
Increase cost-efficiency by regularly adjusting our business and production
structure to the current demand.
Continue to establish strategically placed gravel and rock quarries.
Greater investment in technological development in selected areas.
Stronger focus on sustainability work.
More concept sales with a wider range.
IMPORTANT BRANDS
To a certain extent Peab has built its industrial operations on the acquisition of competent
companies with strong, local brands that complement the Peab brand, for example:
Net sales
MSEK
12,000
10,000
8,000
6,000
4,000
2,000
Operating profit and margin
MSEK
1,200
1,000
800
600
400
200
0
0
2008
2008
2009
2009
2010
2010
2011
2011
2012
Operating profit Operating margin, %
2012
%
12
10
PEAB ANNUAL REPORT 2012
8
6
4
2
0
25
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
Business area Property
Development – develops
commercial property
Property Development is responsible for the Group’s
acquisitions, development and sales of commercial property
and rentals in the Nordic region.
26 PEAB ANNUAL REPORT 2012
MEDIA EVOLUTION CITY
Varvsstaden, Malmö

An active first year
NET SALES AND RESULTS
Net sales and operating profit from operations
is derived from running our wholly
owned property, shares in the profit from
partly owned companies and joint ventures
as well as capital gains from the divestiture
of completed property and shares in partly
owned companies and joint ventures. The
unit is also charged by costs for running the
business area.
During 2012 net sales were SEK 345
million (189) and operating profit amounted
to SEK 51 million (31). This includes capital
gains of SEK 76 million (-) from property
sales and other income of SEK 42 million (-).
During the year profit has been charged
with negative profit contribution in development
projects from partly owned companies
as well as a higher level of costs for organizing
a new business area.
COMMENTS ON THE YEAR
This first year was intense. Not only did we
establish the business area we also traded
in shares and made a number of property
deals. Some development projects were
divested, among them two finished properties
and four housing projects under
production to Willhem AB, four housing
projects to Domestica and an office building
in Hyllie. The divestitures freed resources
for new project investments.
Some of the acquisitions made during
the year were Vasallen with 135,000 m 2
office space in the middle of Sweden and
the military area Almnäs outside Södertälje.
We also invested in the Inspi project, which
is developing a health center in Malmö, and
a hotel in Malmö which Nordic Choice
Hotels will rent and run.
During the year the listed holdings in
BUSINESS SEGMENTS
Listed holdings: Listed holdings during the
year have primarily consisted of shares in
Catena and Brinova. Both holdings were
divested in 2012.
Partly owned companies: Peab’s holding in
Tornet that manages rentals and Centur that
manages and develops retailing property. Also
included are companies connected to Arenastaden
in Solna and some other holdings.
Wholly owned companies and projects:
A large number of holdings that include
everything from land for development where
zoning is underway to finished projects ready
to be sold.
Point Hyllie,
Malmö’s latest
city district under
development
Point Hyllie is one of the areas being developed
by Peab’s Property Development. Its
close proximity to Malmö C, Kastrup Airport
and central Copenhagen has made Point
Hyllie a favorite with customers who want
office space. Peab has already built two office
buildings there and they are fully rented. A
third office building and a hotel are now in the
works. The hotel will be run by one of Peab’s
Nordic customers, Nordic Choice Hotels.
They are developing this 18 floor building
together with Peab. The hotel, which is 45,000
m2, will be the third stage of Peab’s ongoing
investment in Point Hyllie.
Catena and Brinova were divested.
Property Development has together
with Peab’s other business areas developed
various projects within the domain of
their respective businesses.
Business area Property Development in Summary
SIGNIFICANT PARTNERS AND
OTHER PLAYERS
These are renters, investors, municipalities,
and leading Nordic real estate companies.
BUSINESS AREA PROPERTY DEVELOPMENT
MARKET AND OUTLOOK
We believe the demand for property development
projects in the Nordic region from
local and international players will continue
to be good. However, a necessary prerequisite
for being able to make these deals is
that potential buyers will be able to get
financing.
Tomas Anderson, Business Area
Manager Property Development
Strategic priorities
Key ratios 2012 2011
Net sales, MSEK 345 189
Operating profit, MSEK 51 31
Operating margin, % 14.8 16.4
Number of employees 81 –
•
•
•
Extending our Nordic presence.
Continued investments in projects in
new areas as well as existing ones like
Point Hyllie, Arenastaden, Varvstaden
and Ulriksdal.
Continued divestments of finished
projects and other assets in order to
free resources for new development
projects.
PEAB ANNUAL REPORT 2012
27
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
RISK AND RISK MANAGEMENT
Risk and risk management
MATERIAL RISKS AND UNCERTAINTY FACTORS
Peab’s business is exposed both to operational and financial risks.
The affects of risks on Peab’s results and position depend on how
well we handle daily operations in the company. In addition, as a
construction and civil engineering company Peab is vulnerable to
external risks such as developments in the economy and changes
in circumstances due to amendments in laws and regulations, and
other political decisions.
The parent company is indirectly affected by the risks described
in this section.
RISK MANAGEMENT
The management of operational risks is a continuous process
considering the large number of projects the company has in
different phases of started up, carried out and completed. Operational
risks are managed in the line organization in the business
areas. Financial risks are associated with capital tied up in the
company and its capital requirements primarily in the form of
interest risks and refinancing risks. Financial risks are handled on
Group level. The table below describes the most important risks
and how they are handled.
OPERATIONAL RISKS
Peab’s business is largely project related. Operational risks in
day-to-day business are connected to tenders where erroneous
calculations can lead to incorrect tenders, which can then lead to
losses in projects. With margins so low in the industry it can take
several profitable projects to compensate for the losses in one
project. Peab minimizes this risk through a well developed process
and system support for following up projects.
Price risks primarily refer to prices for input goods moving in a
direction that was not foreseen. Other operative risks are wrong
product and method choices and access to competent personnel.
FINANCIAL RISKS AND RISKS CONNECTED
TO FINANCIAL REPORTING
The Group is exposed to financial risks, such as interest rate risks
linked to changes in debt and interest rate levels. There are also
risks connected to financial reporting. Since Peab uses the
percentage of completion method in most of our ongoing projects
erroneous project forecasts mean that reporting and follow-ups
will be misleading. A number of balance items are valued based on
estimations and assessments and this value can be affected by, for
example, the current market and customers` preferences.
For further information on financial risks, see note 37.
SENSITIVITY ANALYSIS
Peab’s operations are sensitive to changes in, among other things,
volumes and margins. The sensitivity analysis below describes how
pre-tax profit is affected by changes in some of the important Group
variables.
Sensitivity analysis
Risk Risk management
Tenders
Erroneous tenders and cost estimates can lead to significant losses in
projects as well as the loss of an order.
Percentage of completion
Peab applies percentage of completion in most of its projects. Miscalculation
of percentage of completion can result in external accounting being seriously
misleading or that strategic decisions are based on incorrect information.
Price risks
For Peab, price risks refer to aspects like unforeseen price hikes for materials,
subcontractors and wages. Risks vary according to the type of contract. Fixed
price contracts also involve the risk of incorrect tender calculations and the
risk that price hikes deteriorate profits because the company cannot demand
compensation from the customer for them.
Circumstantial risk
The uncertainty in the world around us and the financial markets can cause
financing difficulties for customers, suppliers and subcontractors. This can in
turn lead to postponement of planned investments as well as difficulties in
meeting existing obligations.
28 PEAB ANNUAL REPORT 2012
Calculation
basis Change
Pre-tax
profit effect
MSEK
Operative
Volume
(operating margin constant)
Operating margin
47,000 +/– 10% +/– 108
(volume constant)
Material and
2.3% +/– 1% +/– 470
subcontractors 24,000 +/– 1% –/+ 240
Financial
Net debt
(interest rate constant)
Average effective int.rate
6,470 +/– 10% – /+ 19
1)
(net debt constant) 2.9% +/– 1% –/+ 39
1) The calculation is based on the assumption that SEK 3,884 million of the total net
debt of SEK 6,470 million, has a fixed interest period shorter than one year and is
thereby affected almost at once by a change in market interest rates.
Structured risk assessment is crucial in the construction business to ensure
that risks are identified, correctly priced in tenders submitted and that the
right resources are available.
A prerequisite for percentage of completion is reliable forecasting. Well
developed procedures and system support for the monitoring and forecasting
of each project is crucial to limiting risks of erroneous percentage
of completion.
Methods of limiting price risks include rationalising construction processes
and purchasing procedures and always endeavouring to procure materials
and subcontractors back in the tender stage or as early as possible in the
process.
Customers’ and suppliers’ credit worthiness is assessed and handled in the
businesses. A prerequisite for contract project initiation is that the client
has found financing for the project.

Sustainability
Peab’s vision of being a Nordic Community Builder means we have
an obligation to contribute to a sustainable society. As community
builders Peab can and wants to influence the society we and future
generations will live in.
UN’S GLOBAL COMPACT AND GRI
In the autumn of 2012 Peab signed the
Global Compact, a UN initiative for responsible
business which includes principles
concerning human rights, labor rights
issues, the environment and anticorruption.
More detailed information concerning
Peab’s work on sustainable development is
given in Peab’s sustainability report which
follows the international guidelines laid
down by the GRI (Global Reporting Initiative).
The report is available on Peab’s
website www.peab.com.
STRATEGIC SUSTAINABILITY WORK
Peab started up a sustainability council in
2012 and gave it responsibility for producing
goals and action plans for Peab’s continued
sustainability work. The council handles the
Group’s day-to-day sustainability issues as
well as prepares matters that need to be
decided on by the executive management.
Peab endeavors to integrate sustainability
into every part of our business. Responsibility
and authority has been delegated out
to our line managements and they are
supported by special competence in the
environment, ethics and social matters on
different levels in the organization as well
as a number of steering and supportive
documents. Peab’s management system,
comprising quality, the work environment
and the environment meets the require-
Number of accidents per million man hours
Number
60
50
40
30
20
10
0
Sweden
Norway
Finland
ments in the Swedish Work Environment
Authority’s Provisions, AFS 2001:1 as well
as in ISO 9001 and ISO 14000.
2012
2011
2010
The statistics from Finland as of 2012 are for all business areas, which
explains the higher figure for 2012. In 2010 and 2011 the statistics were
based only on construction operations. The comparable figure for 2012
for construction operations is 29.
95 percent recycling
at Seinäjoki
The Itikanmäki district is an important development
project for the expansive city Seinäjoki
in Finland. Peab is tearing down the old
factory buildings located just a kilometer from
the city center and creating new blocks
complete with housing, offices, restaurants
and other cultural spots. This is the largest
demolition project in Peab’s history and we
will recycle enough demolition waste to fill a
thousand trucks. A mere five percent of the
waste will be sent to a waste disposal site. All
in all some 17,000 tons of cement and 13,000
tons of brick waste will be collected from the
site. Some of the waste will be crushed on
location and reused to build courtyard walls
and noise barriers.
Sick leave
%
6
5
4
3
2
1
0
Sweden
CODE OF CONDUCT
Peab’s Code of Conduct is the overriding
steering document for our sustainability
work. This document is integrated into our
company policy and is based on the principles
in the UN’s Global Compact. The Code
of Conduct clarifies how Peab’s employees
should behave towards each other and
suppliers and it is also included in contract
texts to ensure that suppliers and contractors
will behave in the same manner. In
addition to the Code of Conduct there are a
number of underlying policies and guidelines,
such as Peab’s ethical guidelines,
which are fundamental to Peab’s sustainability
work.
SUSTAINABILITY DIALOGUES
AND OVERRIDING PRIORITIES
Peab has a long tradition of cooperating
with stakeholders in different forums in
order to strengthen relationships and be
receptive to demands and expectations. In
2012 Peab initiated stakeholder dialogues
focused on sustainability. The eight overriding
priorities in Peab’s work on sustainability
produced were based on internal and
external prioritizations in sustainability.
Sustainability matters will be completely
integrated into operations.
Peab must be considered an ethical
and transparent company.
Norway
Finland
SUSTAINABILITY
2012
2011
2010
PEAB ANNUAL REPORT 2012
29
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
SUSTAINABILITY
Peab must have competent and clear
leadership which is responsible for
sustainability.
Employees must have good knowledge
of, and a strong commitment to, sustainability
matters.
Peab has a vision of zero workplace
accidents.
Peab will take responsibility for sustainability
aspects in the value chain.
Peab will continually reduce its environmental
impact by choosing the right
material, more efficient use of
resources and minimizing waste and
emissions.
Peab will support and contribute to
developing the communities we are
active in.
OUR EMPLOYEES
Preventive work at our workplaces
Peab has a vision of zero workplace accidents.
In order to prevent accidents Peab
provides safety equipment, quality assured
work methods and training in this area. The
statistics for workplace accidents are based
on accidents that lead to at least 8 hours
absence. The Finnish application of sick
leave rules in relation to occupational injuries
differs from that in Sweden and Norway
which explains the higher figures in the
diagram on page 29.
All incidents and accidents are followed
up. In Sweden this is done on a Web-based
30 PEAB ANNUAL REPORT 2012
system for reporting and registering accidents
and incidents called OTR (Accident
and incident registration). Norway uses a
similar Web-based system called RUH
(Registration of Undesired Events) and in
Finland incidents and accidents are
reported directly to the head of work environment.
During the year two mortal accidents
occurred. Peab’s crisis organization,
trained by MSB, the Swedish Civil Contingencies
Agency, is called in when serious
accidents occur.
The work environment is prioritized at
Peab. In 2012 we invested heavily to further
improve the work environment in the company
through communication programs to
increase risk awareness on our worksites
and revision of our safety regulations.
Executive management and management
groups in the business areas visited many
workplaces in order to emphasis the importance
of a good work environment.
Health promoting work
Peab is constantly working on being the
best working place in the Nordic region.
Our goal is to have the healthiest and most
content employees in the industry and we
work systematically with prevention and
rehabilitation and promotional health care.
In Sweden human resource consultants
have been hired to support and develop a
workplace perspective that promotes
health. All our employees are invited to
partake in activities in the healthcare organization
in their country. Sick leave has
declined in Norway and Finland but risen
slightly in Sweden compared to 2011.
Equal treatment
Peab believes all people have the right to
be themselves without being discriminated.
We have an equal treatment plan for our
employees, students, trainees, temporary
personnel and job applicants to hinder
discrimination and support equal opportunities
for all, regardless of gender, age,
sexual preference or ethnicity. Peab has
zero tolerance of harassment or degrading
treatment. If such a situation arises we take
forceful measures in line with our equal
treatment plan to stop it.
Employee questionnaire
The Handshake is Peab’s personnel questionnaire
and it is distributed every other
year in the form of an anonymous questionnaire.
The purpose of the Handshake is to
identify areas where Peab can improve by
finding out how our employees view their
work environment, leadership and Peab as
an employer. The last questionnaire was
sent out in 2011 and 87 percent answered,
which was a 1 percent increase since it
was carried out in 2009. The Handshake
showed that, for instance, 77 percent of our
employees would happily recommend
others to work at Peab and 63 percent
believe the environment is taken into
consideration in their workplace, which is
an increase of three percent from the
measurement in 2009.

Profit-sharing
Peab has always endeavored to get our
employees to understand the mechanics of
a profitable company and share in Peab’s
success. With this in mind we created a
profit-sharing foundation. Another purpose
of the foundation is to stimulate our
employees’ interest in staying with the
company and to create a better financial
situation for our personnel after they retire.
THE ENVIRONMENTAL AND ENERGY
Important environmental aspects
Peab continually identifies and analyses
the environmental aspects of our business
from a life cycle perspective.
Environmental aspects are the basis for
Peab’s continuous work on minimizing our
environmental impact. Five important environmental
aspects have been targeted for
business areas Construction and Civil Engineering:
use of resources and material,
waste, environmentally and health hazardous
substances, transportation and energy.
Important environmental aspects in the
business area Industry are identified in
each company since the companies run
different kinds of operations.
Our work with resource and material
consumption means choosing products
with as little environmental impact as possible
and reducing the total amount of material
we use. For example, we recycle considerable
amounts of excavated material.
CO2 emissions
CO2 emissions in Sweden and Norway,
148,416 tons (112,867)
Electricity, 32 tons
E85, 47 tons District heating, 651 tons
Diesel, 112,314 tons
Oil, 33,445 tons
Gasoline,
1,927 tons
Energy sources purchased indirectly
The natural material left over after blasting
and excavations is used as filler in areas
nearby.
Peab tries to minimize the amount of
waste that ends up at the waste disposal
site through optimal resource use, recycling
and sorting more. All hazardous waste is
handled correctly. The Swedish business
has measured sorting levels for quite some
time and the sorting level rose from 63
percent in 2010 to 68 percent in 2011 and
71 percent in 2012 in Peab’s Swedish construction
operations.
In our endeavor to minimize the use of
environmentally and health hazardous
substances Peab uses trade systems and
tools. BASTA and Byggvarubedömningen
(BVB) are used in Sweden. In Finland we
use TUKES safety data sheet and in Norway
we use the CoBuilder/BASS system.
Peab works on several fronts to reduce
transportation and CO 2 emissions. In 2012
Peab was one of the first companies in
Sweden to use electric vans. All our
employees are encouraged to minimize
travel by choosing video, telephone or web
conferences over meeting in person. In
Sweden we have even introduced economic
incentives for employees to choose
company cars with lower environmental
impact through a vehicle environment fee.
Energy efficiency is in focus in our core
operations but also in the houses and buildings
we turn over to customers after con-
SUSTAINABILITY
struction is completed. We are constantly
working on reducing energy consumption
and developing energy solutions. In 2012
we launched the development project
Energy Smart Production which is run
jointly by the business areas Civil Engineering
and Industry. The purpose of the project
is to chart the initiatives that generate
results in practice, such as energy saving
start-ups and efficient fuel use.
Environmentally certified
construction
The trend to environmentally certify buildings
has exploded in recent years. There is
also an environmental certification system
for entire city districts and civil engineering
projects but the application of these has not
come as far as the system for buildings.
Peab decided some time ago that all our
own property developments would be environmentally
certified. Peab has also been
active in developing environmental certification
systems and the national adaptation
of them. Peab has contributed with two of
the four construction projects being used to
test the Swedish manual of BREEAM, and
a civil engineering project to test CEEQUAL
(a certification system for land and civil
engineering projects).
Operations required to have
permits or submit reports
Peab runs operations required to have
permits and submit reports in Sweden and
Finland. They are gravel and rock quarries,
Energy sources purchased directly in Sweden and Norway
Liters MWh Giga Joules
2012 2011 2012 2011 2012 2011
Oil 11,532,882 9,485,336 108,795 89,480 391,663 322,127
Gasoline 848,405 1,226,986 7,971 11,528 28,696 41,502
Diesel
(Cars)
16,834,813 18,189,061 165,140 178,424 594,504 642,328
Diesel
(Bulk)
25,066,604 12,248,128 245,889 120,147 885,201 432,530
E85 136,371 283,565 902 1,875 3,246 6,750
Total 54,419,075 41,433,076 528,697 401,454 1,903,310 1,445,237
Sweden Norway Finland All countries
2012 2011 2012 2011 2012 2011 2012 2011
Electricity
MWh 118,623 122,663 1,840 2,620 10,750 11,600 131,213 136,883
Giga Joules
District heating
427,043 441,587 6,623 9,433 38,700 41,760 472,367 492,780
MWh 21,432 29,489 489 134 5,450 8,500 27,371 38,123
Giga Joules 77,155 106,161 1,759 482 1,962 30,600 98,536 137,243
PEAB ANNUAL REPORT 2012
31
BOARD OF DIRECTORS’ REPORT

BOARD OF DIRECTORS’ REPORT
SUSTAINABILITY
water operations, transportion of waste and
hazardous waste, asphalting units, cement
manufacturing and ballast operations.
Renewal and supplementation of permits is
continuous. The operations required to
have permits represent about 2 (3) percent
of Group net sales in 2012 and operations
that must submit reports represent about
6 (6) percent.
COMMITMENT TO THE COMMUNITY
Peab’s ambition is to be an active and
responsible player in society and contribute
with engagement, experience and resources
in situations that promote sustainable
development. Activities aimed at young
people are particularly close to our hearts.
The Peab School was opened in Gothenburg
in 2012.This is the fifth Peab School
in Sweden where theory is mixed with practice
in the secondary school Construction
and Civil Engineering program. There are
currently Peab schools in Ängelholm,
Malmö, Gothenburg, Solna and Upplands-
Väsby with some 440 students in total. All
the schools are quality certified as a Trade
Recommended School by BYN (the Swedish
Construction Industry Training Board)
except for the new school in Gothenburg
and an application will be sent in soon for
that school as well. Read more about the
Peab school at page 33.
A new sponsorship policy was adopted
in 2012 in which sponsoring focuses on
Tervapääskynen
in Helsinki wins
Sustainable Stone
Building Award
Tervapääskynen in Helsinki won the
Sustainable Stone Building Award 2012.
The prize is awarded annually to people and
companies that have participated in projects
built with bricks and cement on site.
Tervapääskynen comprises 65 apartments
as well as cellars and attics. One of the challenges
was that the frame of the building
and its façade had different shapes. Another
was to merge the old and new façade styles
into a functioning unity. According to the jury
Tervapääskynen was surprising but yet
harmonious architecturally.
32 PEAB ANNUAL REPORT 2012
promoting community contributions, societal
development, belonging and team building.
Another example of Peab’s commitment
to the community is Peab’s role as the
principle partner of Mentor, a non-profit
organization that works to prevent violence
and drug abuse among the young. Peab
also works with AUF – Arbeidernes Ungdomsfylking
– to build the new Utöya. In
Södertälje our subsidiary Telge-Peab gives
the unemployed, people receiving employment
aid and refugees a chance to receive
an education, training and work while building
housing.
BUSINESS ETHICS AND
ANTI-CORRUPTION WORK
Peab’s ethical guidelines summarize how
employees should behave in the company,
society and in business. The steering
document with our ethical guidelines is
regularly updated and adopted by executive
management to make sure it is current
and written in a language everyone can
understand. The most recent update was
in August 2012.
As part of our work against corruption
and transgressions against Peab’s ethical
guidelines we started the educational program
The Ethics Round in 2009. Since then
over 3,500 white-collar workers in Sweden,
Norway and Finland have gone through the
program which teaches Peab’s stance on
ethics, the law and what is right. The course
is tailored to Peab’s needs and contains
situations that illustrate different ethical
dilemmas that can occur in operations.
Peab’s ethical council answers questions
concerning ethics from our operations,
internally and externally communicates
Peab’s stance on ethical issues and
prepares and decides on matters where
laws or ethical guidelines have been transgressed.
At Peab, if an employee does not
want to or cannot bring up a matter with
their closet supervisor they may turn to their
supervisor’s boss. They can also contact
the ethical council though a form where
they can submit their views anonymously or
openly.
LASTING FINANCIAL
VALUE CREATION
Peab’s operations affect many different
aspects of economic development in
society such as contributing to innovation,
technical development and creative solutions
that are good for the entire industry.
Cost-efficient and sustainable construction
is achieved through long-term planning,
good relations with customers and an
economic lifecycle perspective. In order to
ensure good relations with customers Peab
measures customer satisfaction in both
housing and business customers via SCI
surveys (Satisfied Customer Index) which
Dredged material is
solidified and reused
in Gävle Harbor
Peab worked together with Gävle Hamn AB
in a partnering project to extend Gävle
Harbor. In recent years the harbor has
experienced considerable growth and
therefore needs new piers, larger and
broader port space and greater capacity to
further expand. Dredged material is polluted
with heavy metals and must be transported
to land to be encapsulated (solidified). In
Peab’s specially built construction – ProSol
2010 – binders are mixed with the dredged
material so that the pollutants are solidified
and the material is stabilized. The material
can then be reused in the harbor extension.
This alternative is cheaper and entails less
environmental impact than hauling the
material to a waste disposal site.
follow an international standard. Peab’s
project Mandolin received the housing
trade’s highest SCI rating in 2012.
A high level of productivity in Peab is
important to internal and external stakeholders
since it saves money and
resources. In order to raise productivity
Peab is moving towards a more standardized
construction model based on tried and
true methods and knowledge-sharing. PGS
(Peab General System) develops high
quality pre-fabricated buildings at competitive
prices. In BIM modeling 3D models are
connected to the tools used in construction
processes, which also ensures they will be
efficient.
Several pilot projects aimed at identifying
the best way to utilize logistical possibilities
have been carried out. In 2012 a
Group logistic project which was run
together with four selected suppliers was
concluded. The purpose of the project was
to find effective logistic solutions in projection,
calculation, purchasing and production.
Peab intends to continue to work with
rationalizing our logistics and will successively
implement logistic solutions in work
procedures and processes.

Participation, security
and confidence at the
Peab School
With a wave of retirements on the horizon Peab felt the need to ensure access to future employees. This
factor, together with a deep concern for elementary students that do not have all the grades they need to
go forward, was the foundation of the Peab School, launched in 2006.
The Peab School offers the secondary school Construction and Civil Engineering program and is based
on a pedagogic where focus is just as much on students becoming secure, aware community members as
becoming skilled workers. The key to this is participation, security and confidence. Theory is mixed with
practice at Peab’s own worksites and around 70 percent of students who get their diploma have begun to
work at Peab.
The Peab School’s pedagogic methods are based on four cornerstones:
Actively working with everyday values – Ethics and values are cemented in a person’s teens. We
educate both community members and community builders and we take this responsibility seriously.
An education in reality – All possible professional know-how that can be taught at a workplace will
be taught there - in real life situations.
Comprehensive view and context – All the subjects are connected together and integrated into
projects.
The individual in focus – Goals and demands are the same for everybody but the way to reach and
meet them is different depending on circumstances. Everyone is challenged to achieve their full potential.
This innovative pedagogic has generated good results. The majority of students leave the school with a job
and a complete set of secondary school grades – even the students that came with almost nothing from
elementary school.
There are currently Peab schools in Ängelholm, Malmö, Gothenburg, Solna and Upplands-Väsby with some
450 students in total. All the schools are quality certified as a Trade Recommended School by BYN (the
Swedish Construction Industry Training Board) except for the new school in Gothenburg and an application
will be sent in soon for that school as well.
PEAB ANNUAL REPORT 2012
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BOARD OF DIRECTORS’ REPORT
OTHER INFORMATION AND APPROPRIATION OF PROFITS
RESEARCH AND DEVELOPMENT
Peab’s R&D is an important part of our
day-to-day production, in part to be able to
offer our customers improved products and
services, and in part to boost Peab’s
competitiveness. The individual business
areas run their own R&D.
One of the development projects that
has been in progress awhile in business
area Construction is PGS (Peab General
System). PGS develops and supplies a
flexible system of pre-fab building components
that are assembled to make up a
complete apartment building. PGS entails
industrial building all the way from design to
final assembly. The first PGS concept buildings
were constructed in 2009 and today
PGS houses are constructed from southern
Sweden up to the Mälardalen region in the
middle of Sweden.
In certain cases business areas Industry
and Civil Engineering develop products
together. One example is the Vinnova
financed innovation project; “Sustainable
production of fine grained products from
rock”. The object of the project is to substitute
natural sand with industrially produced
fine grained products from rock. The project
is expected to be concluded in September
2014. Several innovation projects are also
run by the Swedish Construction Industry
Development Fund (SBUF), among them
non-destructive asphalt, cement and stabilized
soil testing.
IMPORTANT EVENTS IN 2012
Peab was divided into four business areas
on 1 January 2012; Construction, Civil Engineering,
Industry and Property Development.
In keeping with this, executive
management has been expanded to include
the managers of each business area.
Tina Hermansson Berg has been
appointed Head of Human Resources. She
took up her new position on 1 June 2012
and became a member of executive management.
Tina Hermansson Berg was previously
Executive Vice President of Human
Resources & Corporate Communication at
Mölnlycke Health Care AB.
Niclas Winkvist has been appointed
Head of Strategy and Business Support
and a member of executive management.
He will keep his responsibilities for M&A,
and he will also take on the overall responsibility
for the Group’s strategy work. Niclas
was previously CFO for Peab Industri.
Mats Johansson, Executive Vice
President responsible for Business Ethics
and Safety and Security, has left his position
in accordance with his pension agreement.
Responsibility for these issues has
been handed over to Head of HR Tina
Hermansson Berg.
Roger Linnér was appointed the new
Business Area Manager Civil Engineering
and he is a member of Peab’s executive
management as of 1 January 2013. Roger
succeeds Tore Nilsson as Peab’s Business
Area Manager Civil Engineering. Roger has
34 PEAB ANNUAL REPORT 2012
30 percent lower
CO 2 emissions with
low-temperated
asphalt
Over the last ten years Peab Asphalt has
worked intensively to develop asphalt with a
lower environmental impact and which is
energy efficient to manufacture. Achieving this
has made it possible to improve the quality of
the finished pavement, lower working temperatures
even more and increase recycling.
Lowering the paving temperature by around
30 degrees reduces energy consumption by
20 percent, CO 2 emissions by 30 percent and
flue gases and dust particles by all of 65
percent. This reduces the environmental
impact and improves the work environment for
our employees.
been working in Peab since 1996 primarily
in Civil Engineering.
Peab has redeemed its futures for the
purchase of 940,000 shares in Lemminkäinen
Oyj, which is equivalent to 4.78 percent
of the company’s shares and votes. This
means Peab directly owns 2,080,225
shares in Lemminkäinen Oyj, corresponding
to 10.59 percent of both shares and votes.
Peab has issued bonds amounting to
SEK 1,000 million in the MTN program,
which was established in February 2012.
The maturity of the bonds varies from 1.5
years up to a term of 4 years.
Peab has divested its holdings in
Brinova Fastigheter AB and Catena AB.
IMPORTANT EVENTS
AFTER YEAR-END
In March 2013 CEO and President Jan
Johansson chose to step down and Jesper
Göransson was appointed CEO and acting
President. The Board has initiated the
process of finding a new ordinary CEO.
In connection with the revision of the
Norwegian operations, and in order to
increase focus on improved profitability in
Business Area Construction, there has
been a division of responsibility. Deputy
CEO Tore Hallersbo is, as of 1 January
2013, responsible for the further development
of divisions Norway, Finland and Special
Projects. With its specialist expertise
Division Special Projects will support operations
in Norway throughout the entire production
process. As of 8 April 2013 Roger
Linnér is the operative manager for the
Swedish Construction divisions and business
area staff. As of March 2013 Jesper
Göransson is acting Business Area Construction
Manager.
Peab’s business areas Construction,
Civil Engineering and Industry are carrying
out several major projects for Northland
Resources connected to the iron ore mine
in Kaunisvaara outside Pajala. As a result
of the information released on 8 February
2013 by Northland Resources regarding
the business reconstruction, Peab has
declared that outstanding accounts receivable
to companies in the Northland group
amount in total to around SEK 160 million,
of which around SEK 70 million are
included in the reconstruction. No writedowns
are deemed necessary. During the
reconstruction period Peab will receive regular
payments for work performed. Peab
has a close dialogue with the company
regarding its financial development.
THE PEAB SHARE
At the end of the year Peab’s share capital
amounted to SEK 1,583,866,056 divided
among a total of 296,049,730 shares,
resulting in a nominal value of SEK 5.35
per share. Of the shares, 34,319,957 are
A shares with ten votes per share, and
261,729,773 are B shares with one vote
per share. All shares carry equal rights to
participation in the company’s assets,
profits and dividends. There are no
restrictions in the articles of association
concerning transferring shares or votes at
the AGM.
On 31 December 2012 there were
approximately 31,800 shareholders in
Peab. Mats Paulsson with companies represents
the largest single shareholder with
15.9 percent of the capital and 22.3 percent
of the votes. Erik Paulsson with family and
companies was previously the second
largest shareholder with 8.1 percent of the
capital and 22.2 percent of the votes.
During 2012 via his company Backahill Erik
Paulsson sold most of his shares in Peab.
All his A shares were sold to Sara Karlsson
and Svante Paulsson via companies and
the B shares have been purchased by,
among others, Mats Paulsson via companies.
The joint ownership related to the
company’s founders Mats and Erik Paulsson
with families and companies amounted
to 29 percent of the capital and 65 percent
of the votes at year-end.
The company has no knowledge of any
agreements between shareholders that can
result in restriction of the right to transfer
shares.
In 2007, Peab established a profit-
sharing foundation. In accordance with its
investment policy the assets of the foundation
must be placed mainly in Peab shares.
As of 31 December 2012 the foundation
owns 7,803,432 B shares in Peab.
The articles of association specify that
the Board members are elected at the
AGM. The articles of association do not
include any stipulation regarding the dismissal
of Board members or changes to the
articles of association.

The AGM 2007 resolved to issue and offer
convertibles to all employees. The convertibles
matured on 30 November 2012. No
conversion to shares has been made and
the loan of SEK 598 million was repaid in its
entirety.
HOLDINGS OF OWN SHARES
At the beginning of 2012 Peab’s holding of
own shares was 1,086,984 B shares which
corresponds to 0.4 percent of the total
number of shares. In order to offset any
dilution effects from the convertible
programs, to use in the financing of acquisitions
etc. as well as adjust the Group’s
capital structure, Peab’s Annual General
Meeting on 15 May 2012 resolved to
authorize the Board to, during the period
until the next AGM, acquire shares so that
the company would have at most 10
percent of the total shares in Peab. No own
shares were purchased nor divested during
2012. See note 30.
CORPORATE GOVERNANCE
For a detailed description of the work of the
Board of Directors, corporate governance
and system for internal control, see page
86, Corporate Governance Report.
REMUNERATION FOR
SENIOR OFFICERS
The Board will propose to the Annual
General Meeting on 14 may 2013 that the
remuneration policy remain unchanged.
For more information about adopted guidelines
regarding the salaries and other remunerations
to the Chief Executive Officer and
other members of executive management,
see note 9.
ANTICIPATED FUTURE
DEVELOPMENT
Total building construction contracted in
Sweden during 2012 compared to 2011.
There is a large degree of uncertainty about
how the construction and property markets
OTHER INFORMATION AND APPROPRIATION OF PROFITS
will develop in 2013. The level of housing
production is currently too low relative to
the need for housing. This leads to a
growing housing shortage, which can
hamper development on the labor market
and, in turn, even affect economic growth.
A large part of the investments made over
the next few years will in all probability be in
maintenance and repair. The greatest
decline is expected in the industrial sector
in 2013. Civil Engineering developed very
well in 2012. The volume of investments is,
however, expected to level off in 2013 and
end up on the same level as in 2012.
Norwegian building construction startups
have had stable growth in 2012,
although not at the same high rate as previous
years and a hefty negative turn is
expected in building construction start-ups
in 2013. In 2012 civil engineering developed
very well and this is expected to
continue in 2013.
Building construction start-ups in Finland
were slightly down from the previous
year. The assessment for 2013 is that building
construction volumes will continue to
contract but they will turn up slightly again
in 2014. The total volume of civil engineering
investments in 2012 remained
unchanged and this holds true for the
forecast for 2013.
Renovation and maintenance have historically
been much more resistant to financial
crises and shifts in the economy. The
forecast for 2013 is no exception and this
area is expected to grow in all three Nordic
countries.
PARENT COMPANY
The activities of the parent company
consist of executive management and
shared Group functions.
Net sales in 2012 amounted to SEK 96
million (99) and primarily consisted of internal
Group services. Operating profit 2012
amounted to SEK -54 million (-46). Shares
in subsidiaries have been written down during
the year by SEK 346 million (122), of
which SEK 294 million refer to shares in
Peab AS. The result after net financial
items was SEK -227 million (1,573).
Proposed appropriation of profits
The following amounts in SEK are at the disposal of the Annual General Meeting:
Share premium reserve 2,308,208,948
Special reserve 55,000,000
Fair value reserve –120,624,942
Profit brought forward 3,319,001,557
Profit for the year –226,843,827
Total 5,334,741,736
The Board of Directors propose the following appropriation
of disposable profits and non-restricted reserves:
Dividend, 296,049,730 shares at SEK 1.60 per share 473,679,568
Carried forward 1) 4,861,062,168
Total 5,334,741,736
1) Of which to share premium reserve 2,308,208,948
Of which to special reserve 55,000,000
Of which to a fair value reserve –120,624,942
PEAB ANNUAL REPORT 2012
35
BOARD OF DIRECTORS’ REPORT

A Nordic Community Builder:
A new mining project
in the north
Kaunisvaara-gruvan, Pajala, October 2012: The picture shows Sweden’s newest
mining project in Kaunisvaara where Northland Resources began test deliveries of iron ore
in October 2012. Peab has paved the way for the coming operations, built a concentrator,
offices and housing. Peab will even be responsible for transportion from the mine in
Kaunisvarra to the shipping port in Narvik. This is a Nordic project that enlists Peab’s entire
expertise and know-how in all our business areas. This is one example of Peab’s role as a
Nordic Community Builder. For more information about Northland Resources, see page 34
under “Important events after the balance sheet date”.
Read more about our mining projects at www.peab.se/kaunisvaara.
36 PEAB ANNUAL REPORT 2012
KAUNISVAARA GRUVAN
Pajala

Income statement for the Group
INCOME STATEMENT AND REPORT ON COMPREHENSIVE INCOME FOR THE GROUP
MSEK Note 2012 2011
Net sales 3,4 46,840 43,539
Production costs –43,541 –39,842
Gross profit 3,299 3,697
Sales and administrative expenses –2,378 –2,265
Profit from participation in associated companies and joint ventures 18,19 18 24
Other operating income 6 128 58
Other operating costs 7 –12 –9
Operating profit 4,8,9,10,11,38 1,055 1,505
Financial income 239 158
Financial expenses –443 –466
Profit from participation in joint ventures 19 –38 –2
Net finance 12 –242 –310
Pre-tax profit 813 1,195
Tax 14 –88 –252
Profit for the year 725 943
Profit for the year attributable to:
Shareholders in parent company 729 943
Non-controlling interests –4 0
Profit for the year 725 943
Profit per share 15
before dilution, SEK 2.47 3.26
after dilution, SEK 2.47 3.26
Statements of comprehensive income for the group
MSEK Note 2012 2011
Profit for the year 725 943
Other comprehensive income
Translation difference for the year when translating foreign operations –12 0
Profit/loss from exchange risk hedging in foreign operations –2 1
Translation differences transferred to profit for the year – –1
Change for the year in fair value of financial assets available-for-sale –87 –17
Change for the year in fair value of cash flow hedges 34 –204
Change in fair value of cashflow hedges carried over to profit for the year –17 –
Share in associated companies' other comprehensive income –1 –2
Tax attributable to components in other comprehensive income 14 15 16
Other comprehensive income for the year –70 –207
Total comprehensive income for the year 655 736
Total comprehensive income for the year attributable to:
Shareholders in parent company 659 736
Non-controlling interests –4 0
Total comprehensive income for the year 655 736
PEAB ANNUAL REPORT 2012
37
FINANCIAL REPORTS

FINANCIAL REPORTS
BALANCE SHEET FOR THE GROUP
MSEK Note 2012 2011
Assets
Intangible assets 16 2,126 2,231
Tangible assets 17 4,443 4,580
Participation in associated companies 18 – 88
Participation in joint ventures 19 1,279 1,235
Other securities held as fixed assets 22,36,37 442 885
Interest-bearing long-term receivables 21,36,37 1,157 1,314
Deferred tax recoverables 14 231 158
Other long-term receivables 23 108 359
Total fixed assets 9,786 10,850
Project and development property 24 6,239 5,180
Inventories 25 465 416
Work-in-progress 26 1,106 1,689
Accounts receivable 27 7,095 6,535
Interest-bearing current receivables 21,36,37 567 237
Tax assets 105 75
Recognized but not invoiced income 28 5,240 4,580
Prepaid expenses and accrued income 823 352
Other current receivables 23,37 208 465
Current holdings 36,37 10 9
Liquid funds 36,37 429 961
Total current assets 22,287 20,499
Total assets 32,073 31,349
Equity 30
Share capital 1,584 1,584
Other contributed capital 2,576 2,576
Reserves –152 –82
Profit brought forward included profit for the year 3,976 3,869
Equity attributable to shareholders in parent company 7,984 7,947
Non-controlling interests 1 0
Total equity 7,985 7,947
Liabilities
Interest-bearing long-term liabilities 31,36,37 6,772 7,399
Other long-term liabilities 34,36 142 110
Deferred tax liabilities 14 444 376
Provisions for pensions 32,36 7 13
Other provisions 33 394 310
Total long-term liabilities 7,759 8,208
Interest-bearing current liabilities 31,36,37 1,854 1,735
Accounts payable 36,37 4,534 4,508
Income tax liabilities 114 289
Invoiced income not yet recognized 28 5,246 4,269
Accrued expenses and deferred income 3,176 2,641
Other current liabilities 34,36 1,232 1,619
Provisions 33 173 133
Total current liabilities 16,329 15,194
Total liabilities 24,088 23,402
Total equity and liabilities 32,073 31,349
See note 40 for information about the Group’s pledged assets and contingent liabilities.
38 PEAB ANNUAL REPORT 2012

MSEK
Share
capital
REPORT ON CHANGES IN GROUP EQUITY
Equity attributable to shareholders in parent company
Other
contributed
capital
Translation
reserve
Fair
value
reserve
Hedging
reserve
Profit
brought
forward
including
Non-
profit for controlling
the year Total interests
Opening balance equity 2011-01-01 1,584 2,576 39 – 86 3,388 7,673 0 7,673
Total comprehensive income for the year
Profit for the year 943 943 0 943
Other comprehensive income for the year –1 –17 –189 –207 –207
Total comprehensive income for the year – – –1 –17 –189 943 736 0 736
Total
equity
Transactions with Group owners
Dividends –746 –746 –746
Acquisition of own shares –16 –16 –16
Sales of own shares 300 300 300
Total transactions with Group owners – – – – – –462 –462 0 –462
Closing balance equity 2011-12-31 1,584 2,576 38 –17 –103 3,869 7,947 0 7,947
Opening balance equity 2012–01–01 1,584 2,576 38 –17 –103 3,869 7,947 0 7,947
Total comprehensive income for the year
Profit for the year 729 729 –4 725
Other comprehensive income for the year –10 –87 27 –70 –70
Total comprehensive income for the year – – –10 –87 27 729 659 –4 655
Transactions with Group owners
Dividends
Acquisition of non-controlling interests, previous
–620 –620 –620
controlling interests –2 –2 –2
Changes in participation in subsidiaries, new issue 5 5
Total transactions with Group owners – – – – – –622 –622 5 –617
Closing balance equity 2012-12-31 1,584 2,576 28 –104 –76 3,976 7,984 1 7,985
PEAB ANNUAL REPORT 2012
39
FINANCIAL REPORTS

FINANCIAL REPORTS
CASH FLOW STATEMENT FOR THE GROUP
MSEK Note 2012 2011
Current operations 44
Pre-tax profit 813 1,195
Adjustments for non-cash items 739 1,021
Income tax paid –286 –24
Cash flow from current operations before working capital changes 1,266 2,192
Cash flow from changes in working capital
Increase (–)/Decrease (+) project and development properties –989 –682
Increase (–)/Decrease (+) inventories 526 –413
Increase (–)/Decrease (+) current receivables –1,344 –1,721
Increase (+)/Decrease (–) current liabilities 1,044 684
Cash flow from changes in working capital –763 –2,132
Cash flow from current operations 503 60
Investment operations
Acquisition of subsidiaries, net effect on liquid funds –406 –329
Sale of subsidiaries, net effect on liquid funds 135 77
Acquisition of intangible fixed assets – –1
Acquisition of tangible fixed assets –758 –529
Sale of tangible fixed assets 106 244
Acquisition of financial assets –615 –818
Sale of financial assets 2,009 225
Cash flow from investment operations 471 –1,131
Cash flow before financing 974 –1,071
Financing operations
Repurchases of own shares – –16
Withdrawal of own shares – 300
Repayment of convertible promissory notes -598 –
Raised bonds 997 998
Change of loans –1,272 691
Dividend distributed –620 –746
Cash flow from financing operations –1,493 1,227
Cash flow for the year –519 156
Cash at the beginning of the year 970 810
Exchange rate differences in cash –12 4
Cash at year-end 439 970
40 PEAB ANNUAL REPORT 2012

INCOME STATEMENT AND REPORT ON COMPREHENSIVE INCOME FOR THE PARENT COMPANY
MSEK Note 2012 2011
Net sales 3 96 99
Administrative expenses 9,10 –150 –145
Operating profit –54 –46
Result from financial investments 12
Result from participations in Group companies –88 1,862
Result from participations in associated companies 27 6
Result from securities and receivables recognized as fixed assets 97 –23
Interest expenses and similar loss items –209 –226
Profit after financial items –227 1,573
Appropriations 13 0 –156
Pre–tax profit –227 1,417
Tax 14 0 –125
Profit for the year –227 1,292
Report on comprehensive income for the parent company
MSEK 2012 2011
Profit for the year –227 1,292
Other comprehensive income
Change for the year in fair value of financial assets available–for–sale –99 –21
Other comprehensive income for the year –99 –21
Total comprehensive income for the year –326 1,271
PEAB ANNUAL REPORT 2012
41
FINANCIAL REPORTS

FINANCIAL REPORTS
BALANCE SHEET FOR THE PARENT COMPANY
MSEK Note 2012 2011
Assets
Fixed assets
Tangible assets
Machinery and equipment 17 2 2
Total tangible assets 2 2
Financial assets
Participations in Group companies 42 12,547 11,525
Participations in associated companies 18 – 133
Receivables from Group companies 20,36 1,586 1,447
Interest-bearing long-term receivables 21,36,37 105 –
Other securities held as fixed assets 22,36 277 709
Other long-term receivables 23,36 1 1
Total financial assets 14,516 13,815
Total fixed assets 14,518 13,817
Current assets
Current receivables
Receivables from Group companies 36 46 37
Other current receivables 23 2 –
Prepaid expenses and accrued income 29 5 7
Total current receivables 53 44
Liquid funds 36 3 2
Total current assets 56 46
Total assets 14,574 13,863
Equity and liabilities
Equity
Restricted equity
30
Share capital 1,584 1,584
Statutory reserve 300 300
Non-restricted equity
Share premium reserve 2,308 2,308
Special reserve 55 55
Fair value reserve –120 –21
Profit brought forward 3,319 2,646
Profit for the year –227 1,292
Total equity 7,219 8,164
Untaxed reserves 43 156 156
Long-term liabilities
Liabilities to Group companies 36 7,122 4,794
Convertible promissory note 36,37 – 590
Deferred tax liabilities 14 – 2
Total long-term liabilities 7,122 5,386
Current liabilities
Accounts payable 36 55 11
Liabilities to Group companies 36 2 2
Tax liabilities 1 120
Other current liabilities 34,36 3 6
Accrued expenses and deferred income 35 16 18
Total current liabilities 77 157
Total equity and liabilities 14,574 13,863
Pledged assets and contingent liabilities for parent company
Pledged assets – –
Contingent liabilities 40 20,760 18,195
42 PEAB ANNUAL REPORT 2012

MSEK
REPORT ON CHANGES IN THE PARENT COMPANY’S EQUITY
Restricted capital Non-restricted capital
Share Statutory
capital reserve
Share
premium
reserve
Special
reserve
Fair value
reserve
Profit/loss
brought
forward
Profit
for the
year
Total
equity
Opening balance equity, 1 January 2011 1,584 300 2,308 55 – 1,498 1,610 7,355
Profit for the year 1,292 1,292
Other comprehensive income for the year –21 –21
Total comprehensive income for the year – – – – –21 – 1,292 1,271
Allocation of profits 1,610 –1,610 0
Cash dividend –746 –746
Acquisition of own shares –16 –16
Withdrawal of own shares 300 300
Closing balance equity, 31 December 2011 1,584 300 2,308 55 –21 2,646 1,292 8,164
Opening balance equity, 1 January 2012 1,584 300 2,308 55 –21 2,646 1,292 8,164
Profit for the year –227 –227
Other comprehensive income for the year –99 –99
Total comprehensive income for the year – – – – –99 – –227 –326
Allocation of profits 1,292 –1,292 0
Cash dividend –619 –619
Closing balance equity, 31 December 2012 1,584 300 2,308 55 –120 3,319 –227 7,219
PEAB ANNUAL REPORT 2012
43
FINANCIAL REPORTS

FINANCIAL REPORTS
CASH FLOW STATEMENT FOR THE PARENT COMPANY
MSEK Note 2012 2011
Current operations 44
Pre-tax profit –227 1,573
Adjustments for non-cash items 73 –1,638
Income tax paid –122 –8
Cash flow from current operations before working capital changes –276 –73
Cash flow from changes in working capital
Increase (–) /Decrease (+) current receivables –8 –10
Increase (+) /Decrease (–) current liabilities 40 –5
Cash flow from changes in working capital 32 –15
Cash flow from current operations –244 –88
Investment operations
Acquisition of financial assets –679 –
Sale of financial assets 1,583 1,596
Cash flow from investment operations 904 1,596
Cash flow before financing 660 1,508
Financing operations
Repurchase of own shares – –16
Withdrawal of own shares – 300
Repayment of convertible promissory notes -598 –
Change of loans 558 –1,047
Dividend distributed –619 –746
Cash flow from financing operations –659 –1,509
Cash flow for the year 1 –1
Cash at the beginning of the year 2 3
Cash at year-end 3 2
44 PEAB ANNUAL REPORT 2012

CONTENTS NOTES
Note 1 Accounting principles 46
Note 2 Important estimates and assessments 53
Note 3 Income distributed by type 53
Note 4 Operating segment 54
Note 5 Business combinations 55
Note 6 Other operating income 56
Note 7 Other operating costs 56
Note 8 Government grants 56
Note 9 Employees, personnel costs and remuneration to senior officers 56
Note 10 Fees and cost remunerations to auditors 58
Note 11 Operating costs divided by type 58
Note 12 Net financial income/expense 59
Note 13 Appropriations 59
Note 14 Taxes 59
Note 15 Earnings per share 61
Note 16 Intangible fixed assets 62
Note 17 Tangible fixed assets 63
Note 18 Participation in associated companies 64
Note 19 Participation in joint ventures 65
Note 20 Receivables from Group companies 66
Note 21 Interest-bearing receivables 66
Note 22 Other long-term securities holdings 66
Note 23 Other receivables 66
Note 24 Project and development properties 66
Note 25 Inventories 66
Note 26 Work-in-progress 66
Note 27 Accounts receivable 66
Note 28 Construction contracts 67
Note 29 Prepaid expenses and accrued income 67
Note 30 Equity 67
Note 31 Interest-bearing liabilities 68
Note 32 Pensions 69
Note 33 Provisions 69
Note 34 Other liabilities 70
Note 35 Accrued expenses and deferred income 70
Note 36 Valuation of financial assets and liabilities at fair value 71
Note 37 Financial risks and financial policy 73
Note 38 Operational lease contracts 76
Note 39 Investment obligations 76
Note 40 Pledged assets, contingent liabilities and contingent assets 76
Note 41 Related parties 77
Note 42 Group companies 78
Note 43 Untaxed reserves 81
Note 44 Cash flow statement 81
Note 45 Events after the balance sheet day 82
Note 46 Information on parent company 82
PEAB ANNUAL REPORT 2012
45
NOTES

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Note1 Accounting principles
Compliance with standards and legislation
The consolidated accounts have been drawn up in accordance with
the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and interpretations
from IFRS Interpretations Committee (IFRIC) which have been adopted
by EU. In addition, the Swedish Financial Reporting Board recommendation
RFR 1 Supplementary accounting rules for groups has
also been applied.
The accounting principles given below for the Group have been
applied consequently for all the periods presented in the consolidated
financial reports, if not otherwise stated. The Group’s accounting principles
have been applied consequently for reports and the consolidation
of the parent company, subsidiaries, associated companies and
joint ventures in the consolidated financial reports.
The parent company applies the same accounting principles as the
Group except in the cases stated below in the section on the parent
company accounting principles.
The Annual Report and the consolidated accounts have been
approved of by the Board and CEO for publication on 3 April 2013.
The consolidated income statement and balance sheet and the parent
company’s income statement and balance sheet will be presented for
adoption by the AGM on 14 May 2013.
Valuation basis applied for preparation of the parent
company and Group financial reports
Assets and liabilities are reported at historical acquisition values
except for certain financial assets and liabilities which are assessed
at fair value. Financial assets and liabilities valued at fair value consist
of derivatives and shares and holdings that are not reported as subsidaries/associated
companies or joint ventures.
Functional currency and reporting currency
The parent company’s functional currency is the Swedish crown,
which is also the currency in which the accounts of the parent company
and the Group are reported. Thus the financial reports are presented
in Swedish crowns. Unless otherwise indicated all amounts are
rounded off to the nearest million.
Estimates and assessments in the financial reports
Preparing the financial reports in accordance with the IFRSs requires
that the company management make estimates and assessments and
make assumptions which affect the application of the accounting policies
and the recognized amounts with regard to assets, liabilities, revenues
and costs. The actual outcome may vary from these estimates
and assessments.
Estimates and assumptions are regularly reviewed. Changes to estimates
are entered in the accounts of the period the change is made
and, where applicable, in future periods.
Assessments made by the company management when applying
the IFRSs which have a significant impact on the financial reports and
assessments made, which could result in substantial adjustments to
following years’ financial reports, are described in more detail in note 2.
Changed accounting principles
Group accounting principles are the same as in the Annual Reports
2011. The amendments of IFRSs applied from 2012 have not had any
significant effect on Group accounting.
New IFRSs and interpretations that have not yet been applied
The Group has chosen not to prematurely apply new standards or
interpretations when preparing these financial reports and plans no
premature application in the coming years.
Amended IAS 19 Employee benefits eliminates the current rules
that make it possible to even out actuary gains and losses over time.
Instead actuary gains and losses will be recognized in the comprehensive
income statements as they occur. The yield on plan assets in
the result is recognized for an amount calculated on the discount rate
used when calculating employee benefit obligations. The difference
between the real and calculated yield of plan assets is recognized in
the other comprehensive income statement. The amendments will be
applied from the financial year 2013 and retroactively. EU has
approved the application of the amendments. Amendments in IAS 19
are expected to affect Group equity per 1 January 2012 by around
46 PEAB ANNUAL REPORT 2012
SEK –14 million after taking deferred tax into consideration. The translation
effect on the Group result is expected to amount to SEK 1 million
and SEK 7 million on the comprehensive result for 2012. Equity
at the end of the year is expected to be affected by SEK –6 million
taking deferred tax into consideration.
The amended IAS 1 Presentation of financial statements means
that items in other comprehensive income must be separated into two
categories and presented in other comprehensive income based on
whether the items will at a later date be reported as income or not.
The amendment, now approved by the EU, will be applied from the
financial year 2013 and retroactively. Group presentations are affected
by the fact that translation differences will belong to the category that
can be reversed whereas actuary gains and losses on defined benefit
pension plans (see the above) will belong to the category that can
never be reversed to profit/loss. Items that can be reclassified are, for
example, translation differences and profit/loss on cash flow hedges.
Items that are not reclassified are, for example, actuary gains and
losses.
IFRS 13 Fair value measurement will be applied onward from the
financial year 2013 and is only expected to affect Group disclosures.
IFRS 13 is approved for application by the EU.
Amendments to IAS 32 Financial instruments: Classification regarding
the rules for when financial assets and financial liabilities may be
offset. The amendments to IAS 32 are approved for application by the
EU and will be applied from the financial year 2014 and retroactively.
New disclosure requirements in IFRS 7 Financial instruments: Disclosures
regarding the offset of financial assets and financial liabilities
will be applied from the financial year 2013. Disclosures will also be
made retroactively. The amendments to IFRS 7 are approved for application
by the EU.
IFRS 10 Consolidated financial statements, IFRS 11Joint arrangements
and IFRS 12 Disclosure of interests in other entities deal with
when entities must be consolidated, how joint ventures and joint operations
should be presented as well as which disclosures must be
made regarding these investments. At the same time the consequential
amendments in IAS 27 called Separate financial reports will be
applied. IAS 28 has been revised as well and is called Investments in
associates and joint ventures. When EU approved the above standards
obligatory application was put off until 2014 with a requirement
for retroactive application. The new standards and amendments
above are not expected to affect Group accounting other than in
certain disclosures.
IFRS 9 Financial instruments, will replace IAS 39 Financial instruments:
Recognition and measurement as of 2015. IASB has published
the first two of at least three parts which will together form IFRS
9. The first two parts deal with classification and valuation of financial
assets and financial liabilities. IFRS 9 has not yet been approved for
application by the EU and approval is not expected until EU can take
a position on all three parts of IFRS 9. Peab has therefore chosen to
wait before making a consequence analysis.
Other new or amended IFRSs together with interpretations are not
expected to have any effect on Group accounting.
Operating segments
An operating segment is an entity in the Group that engages in business
activities from which it may earn revenues and incur expenses
and for which discrete financial information is available. An operating
segment’s results are reviewed by the company’s highest decision
maker in order to assess its performance and to be able to allocate
resources to the segment. Segment information is provided for the
Group only.
Classification etc.
Fixed assets, long-term liabilities principally consist of amounts which
may be expected to be recovered or defrayed later than 12 months
after the balance sheet date. Current assets and current liabilities
principally consist of amounts which may be expected to be recovered
or defrayed within 12 months of the balance sheet date.
Consolidation principles
Subsidiaries
Subsidiaries are entities over which Peab AB exercises a controlling
influence. The term controlling influence refers to a direct or indirect
right to mould the company’s financial and operating strategies in
order to obtain financial benefits. When assessing whether a con-

trolling interest is involved, potential share voting rights which can be
exercised immediately or can be converted must be taken into
account.
Business combinations are recognized using the purchase accounting
method, under which acquisitions of subsidiaries are regarded as
transactions through which the Group indirectly acquires the assets
of the subsidiary and takes over its liabilities. The consolidated acquisition
value is calculated in an acquisition analysis in conjunction with
the acquisition. The analysis establishes the acquisition value of the
participations or the business, the fair value on acquisition date of the
acquired identifiable assets and the liabilities taken over.
From 1 January goodwill in business combinations is calculated as
the sum of transferred reimbursement, any non-controlling interest
and the fair value of previously acquired shares (in step acquisitions)
less the fair value of the subsidiary’s identifiable assets and overtaken
liabilities. Where the difference is negative this is recognized directly
in profit/loss for the year. Goodwill from acquisitions before 2010 is
calculated as the sum of transferred reimbursement and acquisition
expenses less the fair value of acquired identifiable net assets from
each acquired share after which the acquisition value of goodwill
from all the separately acquired shares is aggregated. Acquisition
costs for business combinations from 2010 on are expensed but are
included in goodwill in acquisitions made before that date.
Conditional consideration from 2010 on is measured at fair value at
the time of acquisition and subsequent changes in fair value are recognized
in profit and loss as they occur. For acquisitions before 2010
conditional consideration is only reported when it is possible to calculate
a probable and reliable amount and any adjustments thereafter
are recognized in goodwill.
In subsidiaries acquired from 2010 on where there are owners with
a non-controlling interest the Group reports net assets attributable to
owners of non-controlling interests either as the fair value of all net
assets excluding goodwill or the fair value of all assets including
goodwill. The choice is made individually for each acquisition.
Increased ownership in companies in stages is reported as step
acquisitions. In step acquisitions from 2010 on that lead to control the
previously acquired shares are remeasured based on the fair value of
the latest acquired share and the resulting profit or loss is recognized
in the income statement. Step acquisitions before 2010 are reported
as an aggregation of the acquisition-date values and any remeasurement
when control is achieved is recognized in the remeasurement
reserve in equity.
When control has been achieved the change in ownership is reported
as a transfer in equity between the parent company and the
non-controlling interests, without remeasuring the subsidiary’s net
assets. In changes in ownership while maintaining control prior to
2010 the difference between payment and the acquisition’s share of
booked identifiable assets were recognized in goodwill.
From 1 January 2010 partial disposal of an investment in a subsidiary
that results in loss of control triggers remeasurement of the residual
holding to fair value. Any difference between fair value and carrying
amount is recognized in profit or loss for changes in ownership.
No such remeasurement was performed on residual holdings that
formed a joint venture or associated company prior to 2010.
When acquisitions of subsidiaries involve the acquisition of net
assets which do not comprise operations, the acquisition cost of each
identifiable asset and liability is divided based on its relative fair value
at the time of acquisition.
The financial reports of subsidiaries are recognized in the consolidated
accounts from the date the controlling influence arises and
remain in the consolidated report until the date it ceases.
Joint ventures
For accounting purposes, joint ventures are entities where the Group
through co-operation agreements with one or more partners exercises
a joint controlling influence over operational and financial management.
From the date on which the joint controlling influence is
assumed, participations in joint ventures are recognized in consolidated
accounts in accordance with the equity method, whereby the value
of participations in joint ventures recognized in the consolidated
accounts corresponds to the Group’s participation in the equity of
joint ventures and Group goodwill and other possible residual Group
deficit and surplus values. The Group’s participations in joint ventures
after tax and minorities adjusted for depreciation, write-downs or dispersal
of acquired deficit and surplus values are recognized in con-
solidated profit for the year as Participations in profit of joint ventures.
Only equity earned after the acquisition is recognized in the consolidated
equity. Dividends received form joint ventures reduce the
accounting value of the investment.
Upon acquisition, any differences between the acquisition value of
the holding and the owner company’s participation in the net fair value
of the joint venture’s identifiable assets, liabilities and contingent
liabilities is recognized primarily according to the same principles as
for subsidiaries with the difference that acquisitions costs are activated
in the acquisition value of the shares and that changes in ownership
while maintaining joint control are reported as separate partial
acquisitions respectively partial disposals of shares proportional to
the groupwise value.
The equity method is applied until the time the joint controlling influence
ceases.
Associated companies
Associated companies are those companies in which the Group has a
significant but not controlling influence over operating and financial
control usually through shareholdings of between 20 and 50 percent.
From the date on which the significant influence is assumed, participations
in affiliated companies are recognized in consolidated
accounts in accordance with the equity method. For a description of
the equity method, see Joint Ventures above.
Transactions which must be eliminated upon consolidation
Intra-group receivables and liabilities, revenues or costs or unrealised
gains or losses stemming from intra-group transactions between
Group companies are eliminated completely when preparing the
consolidated accounts.
Unrealised gains arising from transactions with joint ventures are
eliminated to the extent these refer to the Group’s ownership participation
in the company. Unrealised losses are eliminated in the same
way as unrealised gains but only to the extent there is no write-down
requirement.
Foreign currency
Transactions in foreign currency
Transactions in foreign currency are converted to the functional currency
at the exchange rate on the transaction date. The functional currency
is the currency of the primary financial surroundings where the
company operates. Monetary assets and liabilities in foreign currency
are converted to the functional currency at the exchange rate applying
on the balance sheet day. Exchange rate differences arising during
translation are recognized in profit/loss for the year. Non-monetary
assets and liabilities which are recognized at historical acquisition
value are converted at the exchange rate applying at the time of the
transaction. Non-monetary assets reported at fair value are recalculated
to the functional currency at the exchange rate current at the time
of valuation at fair value.
The financial reports of foreign businesses
Assets and liabilities in foreign entities including goodwill and other
Group deficit and surplus values are converted from the foreign company’s
functional currency to the Group’s reporting currency, Swedish
crowns, at the exchange rate applying on balance sheet day. Earnings
and costs in a foreign entity are converted to Swedish crowns at an
average rate approximating to the rates applying on the respective
transaction dates. Translation differences arising when converting the
currency of foreign companies are recognized in other comprehensive
income and are accumulated in a separate component in equity
as a translation reserve.
Net investment in a foreign company
Translation differences arising from the translation of a foreign net
investment are recognized via other comprehensive income in the
translation reserve in equity. Translation differences also comprise
exchange rate differences from loans which form a part of the parent
company’s investment in foreign subsidiaries (so-called extended
investment). When a foreign subsidiary is divested, the accumulated
translation differences attributable to the company are reclassified
from equity to profit/loss for the year.
Accumulated translation differences attributable to foreign companies
are presented as a separate capital class and contain translation
differences accumulated from 1 January 2004 onwards. Accumulated
PEAB ANNUAL REPORT 2012
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translation differences before 1 January 2004 are divided into other
own capital classes and are not recognized separately.
Income
Construction contracts
Current construction contracts are reported in accordance with IAS
11, Construction contracts. Under IAS 11 income and expenses must
be recognized as the contract is completed. This principle is known
as the percentage of completion method. Income and expenses are
recognized in profit and loss in proportion to the percentage completion
of the contract. The percentage completion of the contract is
determined based on the defrayed project costs compared to the
project costs corresponding to the project income for the whole
contract. The application of the percentage of completion method is
prerequisite on it being possible to calculate the outcome in a reliable
manner. In case of contracts where the outcome cannot be reliably
calculated, income is calculated in proportion to the costs defrayed.
Feared losses are charged to income as soon as they become known.
In the balance sheet, construction contracts are entered project by
project either as Recognized but non-invoiced income under current
assets or as Invoiced income not yet recognized under current liabilities.
Those projects with higher accumulated income than invoiced are
recognized as assets whilst those projects which have been invoiced
in excess of the accumulated income are recognized as liabilities.
Swedish tenant-owned housing projects are reported according to
IAS 11, Construction contracts, which entails applying the percentage
of completion method as the project progresses based on expenses
that have occurred in relationship to the project’s calculated total cost.
A contract is drawn up which regulates the sales of land and construction
of the property with the tenant-owned association, which is
an independent legal entity.
Own developed housing projects for sale
Since Peab has housing projects in Finland and Norway as well as our
own home developments in Sweden Peab does not have an external
independent other party at the start of a project, which means that
the projects are reported according to IAS 18 Revenue and income
from these projects is recognized first when the projects are handed
over to the buyer. Expenses are recognized as work-in-progress in the
balance sheet. On account invoices to customers are reported as
non-interest-bearing liabilities, and loans to finance housing projects
are reported as interest-bearing liabilities.
Other income
Other income excluding construction contracts is recognized in
accordance with IAS 18 Revenue. Income from the sale of goods is
recognized in profit/loss for the year when the material risks and benefits
associated with ownership of the goods has been transferred to
the buyer. Crane and machinery hire income is recognized linearly
over the hiring period.
Government grants
Government grants are recognized in the balance sheet as government
receivables when it is reasonably certain that the contribution will be
received and that the Group will meet the requirements for the grant.
Grants are amortised systematically in profit/loss for the year as cost
reductions in the same way and over the same periods as the costs that
the grants are intended to offset. Government grants related to assets
are recognized as a reduction in the recognized value of the asset.
Leasing
Operational leasing agreements
Expenses for operational leasing agreements where the Group is the
lessee are recognized linearly in profit/loss for the year over the leasing
period. Benefits obtained from the signing of an agreement are
recognized linearly in profit/loss for the year over the term of the leasing
agreement. Variable costs are expensed in the periods they occur.
Revenues relating to operational leasing agreements where the
Group is the lessor are recognized in a straight line over the life of the
lease agreement. Costs arising from leasing agreements are recognized
as they arise.
Financial leasing agreements
Minimum leasing charges are divided between interest costs and
amortization of the outstanding debt. Interest costs are distributed
over the leasing term such that an amount corresponding to a fixed
48 PEAB ANNUAL REPORT 2012
interest rate for the debt accounted in the respective period is recognized
in each accounting period. Contingent rents are carried as
expenses in the periods it occurs.
Financial income and expenses
Financial income and expenses consist of interest income on cash at
bank, receivables and interest-bearing securities, interest expenses
on loans, dividend revenues, realised and unrealised gains and losses
on financial investments and derivatives used within the financial
business.
Interest income on receivables and interest expenses on liabilities
are calculated in accordance with the effective interest rate method.
The effective interest rate is the discount rate for estimated future
payments and disbursements during the expected life of a financial
instrument to the financial asset’s or liability’s net book value. Interest
income and interest expenses include accrued transaction costs and
possible discounts, premiums and other differences between the
original value of the receivable or liability and the amount received
when it falls due.
Dividend income is recognized when the right to payment is established.
The results of sales of financial investments are recognized when
the risks and benefits associated with ownership of the instrument
are materially transferred to the buyer and the Group no longer has
control of the instrument.
Interest costs are charged to income during the period to which
they refer except to the extent that they are included in that asset’s
acquisition value. An asset for which interest can be included in the
acquisition price is an asset which must necessarily require considerable
time to prepare for the intended use or sale. Interest costs are
capitalised according to IAS 23, Borrowing costs. Interest rate swaps
are used to hedge against interest risks connected to Group loans.
Interest rate swaps are valued at fair value in the balance sheet. The
coupon rate part is recognized on a current basis in profit/loss for the
year as a correction of the interest expense. Unrealised changes in
the fair value of rate swaps are recognized in other comprehensive
income and are part of the hedging provision until the hedged item
affects profit/loss for the year and as long as the criteria for hedge
reporting is met.
Taxes
Income tax consists of current tax and deferred tax. Income tax is
recognized in profit/loss for the year except when the underlying
transaction is recognized in equity, in which case the relevant tax is
recognized in other comprehensive income or equity.
Current tax is tax that must be paid or will be received during the
current year. This also includes current tax attributable to earlier periods.
Current and deferred tax is calculated applying the tax rates and
tax rules resolved upon or in practice resolved upon on the balance
sheet day.
Deferred tax is calculated according to the balance sheet method
based on temporary differences between the accounted and tax values
of assets and liabilities. Temporary differences are not taken into
account for the difference generated by the recognition of groupwise
goodwill and nor for difference that occurred at first recognition of
assets and liabilities which are not business combinations and which
at the time of the transaction did not affect either recognized or taxable
profits. Further are not temporary differences attributable to participations
in subsidiaries and joint ventures, which are not expected
to be written back in the foreseeable future, taken into account. Valuation
of deferred tax is based on how the underlying value of assets or
liabilities is expected to be realised or regulated.
When companies are acquired such acquisition either refers to
business combinations or asset purchase. Asset purchase refers to,
for example, the acquired company only owning one or more properties
with tenancy agreements but the acquisition not comprising processes
required to operate property business. When recognising
asset purchase no deferred tax is recognized separately. The fair
value of deferred tax liabilities is instead deducted from the fair value
of the acquired asset.
Deferred tax receivables relating to deductible temporary differences
and loss carry-forwards are only recognized to the extent it is likely
they can be exercised. The value of deferred tax receivables is
reduced when it is no longer assessed they can be utilised.

Financial instruments
On the assets side, financial instruments entered to the balance sheet
include liquid funds, current investments, accounts receivable, securities
holdings, loan receivables and derivatives. On the liabilities side,
they include accounts payable, borrowing and derivatives.
Recognition in and removal from the balance sheet
Financial assets and financial liabilities are entered to the balance
sheet when the company becomes involved in accordance with the
instrument’s contractual terms. Accounts receivable are reported
when the company has performed and the other party has a contractual
responsibility to pay, even if the invoice has not yet been sent.
Accounts receivable are entered into the balance sheet when the
invoice has been sent. Liabilities are recognized when the counterparty
has performed the service and there is a contractual payment
obligation even if the invoice has not been received. Accounts payable
are recognized when the invoice is received.
Financial assets are removed from the balance sheet when the
rights of the agreement have been realised, fall due or the company
loses control of them. The same applies to parts of financial assets.
Financial liabilities are removed from the balance sheet when contractual
obligations are discharged or have been otherwise extinguished.
The same applies to parts of financial liability.
Financial assets and financial liabilities are offset and recognized at
a net amount in the balance sheet only where there is a legal right to
offset the amounts and it is intended to adjust the items with a net
amount or to at the same time capitalise the asset and adjust the liability.
On-demand acquisitions and on-demand sales of financial assets
are reported on the transaction date, which is the date the company
undertakes to acquire or sell the asset.
Classification and valuation
Financial instruments which are not derivatives are initially recorded at
acquisition value corresponding to the instrument’s fair value with the
addition of transaction costs for all financial instruments except for
those classified as financial assets, which are recognized at fair value
in profit for the year which are recorded at fair value minus transaction
costs. Financial instruments are classified upon first recognition
based on the purpose for which the instrument was acquired. Classification
determines how financial instruments are valued after first
recognition as described below.
Liquid funds consist of cash and immediately available balances at
banks and equivalent institutes and current liquid investments with
maturities from the acquisition date of less than three months and
which are exposed to only insignificant value fluctuation risks.
Financial assets valued at fair value via profit/loss
Financial assets in this category are constantly valued at fair value
with value changes recognized in profit/loss for the year. This category
consists of two sub-groups: financial assets held for trading and other
financial assets which the company initially chooses to place in this
category with the support of the so called fair value option. The first
sub-group includes derivatives with positive fair value except for derivatives
which are identified and in effect hedge instruments. The Group
has decided to include listed shares which the executive management’s
risk management and investment strategy manages and values
based on fair value in the second sub-group.
Financial assets available-for-sale
Included in the category financial assets available for sale are financial
assets not classified in any other category or financial assets that
the company has chosen to initially classify in this category. Shareholdings
and participation not recognized at fair value via profit and
loss, and which are not subsidiaries, associated companies or joint
ventures, are reported in this category. Assets in this category are
valued at fair value with the changes in value for the period reported
in other comprehensive income. Accumulated changes in value are
reported in a separate component of equity, with the exception of
changes in value stemming from write-downs. Received dividends are
reported in profit/loss for the year. When the asset is divested the
accumulated profit/loss, which was previously reported in other
comprehensive income, is reported in profit/loss for the year.
Loans and receivables
Loans and receivables are financial assets which are not derivatives
with fixed payments or with payments which can be determined and
which are not listed in an active market. These assets are valued at
amortized cost. The amortized cost is determined based on the
effective interest rate which is calculated at the time of acquisition.
Accounts receivable are recognized at the estimated impact amount,
i.e. after deduction of distressed debts.
Financial liabilities valued at fair value via profit/loss
Financial liabilities in this category are valued at fair value with the
changes in value reported in profit/loss for the year.
The category consists of two sub-groups: financial liabilities which
are held for trading and other financial liabilities which the company
initially chose to place in this category with the support of the so
called fair value option. The first sub-category includes derivatives
with negative fair value except for derivatives which are identified and
in effect hedge instruments. The Group has not included any financial
liabilities in the second sub-category.
Other financial liabilities
Loans and other financial liabilities, e.g. accounts payable, are included
in this category. Liabilities are recognized at accrued acquisition
value.
Derivates
The Group’s derivatives consist of interest rate, exchange rate and
share derivatives utilised to hedge risks of changes in exchange
rates, interest rate changes and changes in the fair value of shares.
Derivatives not used for hedge accounting are classified as financial
assets or financial liabilities held for trading and are valued at fair value.
Value changes are recognized in profit/loss. The valuation method
involves the discounting of future cash flows.
Derivatives are initially recognized at fair value, and consequently
transaction costs are charged to profit/loss for the period. After first
recognition derivatives are recognized as described below. If the
derivative is used for hedge accounting and to the extent this is effective,
the value change to the derivative is recognized on the same line
in profit/loss for the year as the hedged item. Even if hedge accounting
is not applied, the value gain or reduction to the derivative is recognized
as income or expenses in operating profit or in net financials
items depending on the purpose for which the derivative is used and
whether its use relates to an operating item or a financial item. In
hedge accounting, the non-effective part is recognized in the same
way as value changes to derivatives that are not used in hedge
accounting. If hedge accounting is not applied to the use of interest
rate swaps, the coupon rate is recognized as interest and the remaining
value change of the interest rate swap is recognized as other
financial income or other financial costs.
The exchange rate contracts used to hedge future cash flow is recognized
applying the rules for hedge accounting. These hedge instruments
are recognized at fair value in the balance sheet. The value
changes for the period are recognized in other comprehensive
income and the accumulated value changes in a separate component
of equity (the hedging reserve) until the hedged flow matches profit/
loss for the year whereupon the accumulated value changes of the
hedge instrument are reclassified to profit/loss for the year when the
hedged transaction matches profit/loss for the year.
Loans to foreign subsidiaries (extended investment) through investments
in foreign subsidiaries have been to some extent financially
hedged through forward contracts. Hedge accounting has not been
applied. These loans are recognized at the price on balance sheet
day and derivatives are recognized at fair value according to the above.
Holdings of shares noted in foreign stock exchanges that are classified
as financial assets available for sale have been hedged through
forward exchange contracts. Hedging accounting has been used for
these hedges by recognizing the translation effect from the translation
of shares to the functional currency in profit/loss for the year instead
of other comprehensive income. The translation effect is offset to the
extent the hedge is effective by the changes in the fair value of the
hedging instrument, which is also recognized in profit/loss for the
year.
Hedge accounting of net investments
To a certain extent measures have been taken to reduce exchange
risks connected to investments in operations abroad. This has been
done by taking out loans in the same currency as the net investments.
PEAB ANNUAL REPORT 2012
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These loans are recognized at the translated rate on balance sheet
day. The effective part of the period’s exchange rate changes in relation
to hedge instruments is recognized in and the accumulated
changes in a separate component of equity (the translation reserve),
in order to meet and partly match the translation differences that
affect other comprehensive income concerning net assets in the
hedged operations abroad. In the cases where the hedge is not
effective, the ineffective part is recognized directly in profit for the
year as a financial item.
Holdings of convertible certificates of claim
Convertible certificates of claim may be converted to shares through
the exercise of the option to convert the claim to shares. The option to
convert a convertible certificate of claim to shares is not closely related
to the claim right and therefore it is separated as an “embedded
derivative” belonging to the valuation category financial assets held
for trading. Therefore the derivative part is initially valued and subsequently
on an ongoing basis according to a valuation model at fair
value. Value changes are recognized in profit for the year as financial
income and expenses. The claim part is ascribed to the loan and
accounts receivable category and initially valued as the difference
between the acquisition value of the convertible and the initial fair
value of the option. Subsequently the claim part is valued at accrued
acquisition value based on the derived implicit interest rate which
gives an even return over the contractual life of the claim.
Issued convertible promissory notes
Convertible promissory notes can be converted to shares if the counterparty
exercises the option to convert the claim to shares and are
recognized as a compound financial instrument divided into a liability
part and an equity part. The fair value of the liability at the time of
issue is calculated by discounting future payment flows at the current
market rate for similar liabilities without conversion rights. The value of
the equity capital instrument is calculated as the difference between
the issuing funds when the convertible promissory note was issued
and the fair value of the financial liability at the time of issue. Deferred
tax attributable to liabilities at the issue date is deducted from the
recognized value of the equity instrument. Interest expenses are recognized
in profit for the year and are calculated applying the effective
interest rate method.
Tangible fixed assets
Owned assets
Tangible fixed assets are recognized in consolidated accounts at
acquisition value minus accumulated depreciation and amortization
and any write-downs. The acquisition value consists of the purchase
price and costs directly attributable to putting the asset in place in the
condition required for utilisation in accordance with the purpose of
the acquisition. Borrowing costs are included in the acquisition value
of internally produced fixed assets according to IAS 23. The accounting
principles applying to impairment loss are listed below.
The value of a tangible fixed asset is derecognized from the balance
sheet upon scrapping or divestment or when no future financial
benefits are expected from the use or scrapping/divestment of the
asset. Gains and losses arising from divestment or scrapping of an
asset consist of the difference between the sale price and the asset’s
booked value minus direct costs of sale.
Leased assets
Leasing is classified in the consolidated accounts either as financial
or operating leasing. Financial leasing applies in circumstances
where the financial risks and benefits associated with ownership are
substantially transferred to the lessee. Where such is not the case,
operating leasing applies.
Assets which are rented under financial leasing agreements are
recognized as assets in the consolidated balance sheet. Payment
obligations associated with future leasing charges have been recognized
as long-term current liabilities. The leased assets are depreciated
according to plan while leasing payments are entered under interest
and amortisation of liabilities.
Assets which are rented under operational leasing agreements have
not been recognized as assets in the consolidated balance sheet.
Leasing charges for operational leasing agreements are charged to
income in a straight line over the life of the lease.
Assets which are rented out under financial leasing agreements are
50 PEAB ANNUAL REPORT 2012
not recognized as tangible fixed assets since the risks and opportunities
connected to ownership of the assets are transferred to the lessee.
A financial receivable referring to future minimum leasing fees is
reported instead.
Future expenses
Future expenses are only added to the acquisition value if it is likely
that the future financial benefits associated with the asset will benefit
the company and the acquisition value can be reliably estimated. All
other future expenses are recognized as costs as they arise.
Borrowing costs
Borrowing costs which are directly attributable to the purchase, construction
or production of an asset and which require considerable
time to complete for the intended use or sale are included in the
acquisition value of the asset. Borrowing costs are activated provided
that it is probable that they will result in future financial benefits and
the costs can be reliably measured.
Depreciation principles
Depreciation is based on the original acquisition value minus the
calculated residual value. Depreciation is made linearly over the
assessed useful life of the asset.
Buildings (operating buildings) 25–100 years
Land improvements 25–50 years
Asphalt and concrete factories 10–15 years
Vehicles and construction machinery 5–6 years
PCs 3 years
Other equipment and inventories 5–10 years
The useful life and residual value of assets are assessed annually.
Gravel and rock quarries are written down based on substance
depletion, i.e. the amount of gravel and rock removed in relation to
the calculated total amount of substance deemed recoverable in the
gravel and rock quarry.
Real estate
Group real estate holdings are divided as follows:
– Buildings and land entered under tangible fixed assets
– Project and development properties as inventories among
current assets
Properties used in the Group’s own operations consisting of office
buildings and warehouses (operational buildings) are entered as
buildings and land under tangible fixed assets. Valuation is made in
accordance with IAS 16, Tangible fixed assets, at acquisition value
deducted for accumulated depreciation and possible write-downs.
Direct and indirect holdings of undeveloped land and redeveloped
tracts for future development, developed investment properties for
project development, improvement and subsequent sale and which
are expected to be realized during our normal operational cycle are
entered as project and development property under current assets.
Valuation is made in accordance with IAS 2, Inventories, at the lowest
of either acquisition value or net sales value.
Intangible assets
Goodwill
Goodwill refers to the difference between the acquisition value of a
business and the fair value of acquired identifiable assets and
assumed liabilities.
Goodwill is value at acquisition value minus any accumulated writedowns.
Goodwill is divided between cash-generating units and is tested
at least once a year for write-down needs. Goodwill stemming from
the acquisition of joint ventures and affiliated companies is included
in the recognized value of participations in joint ventures and affiliated
companies.
In the case of business acquisitions which are less than the net
value of the acquired assets and the assumed liabilities, the difference
is recognized directly in profit for the year.
Research and development
Research costs intended to acquire new scientific or technological
knowledge are reported as costs as they arise. Development costs

where the results of research or other knowledge is applied to the
production of new or improved products or processes are reported
as an asset in the balance sheet if the product or process is technically
or commercially useful and the company has adequate resources
for completing development and then applying or selling the intangible
asset. The recognized value includes all directly attributable
expenses, including for materials and services, payroll costs, the
registration of legal rights, depreciation of patents and licences,
borrowing costs. Other development costs are reported in profit for
the year as costs as they arise. Development costs are recognized in
the balance sheet at acquisition value minus accumulated depreciation
and possible write-downs.
Other intangible assets
Other intangible assets acquired by the Group are recognized at
acquisition value minus accumulated depreciation, amortization and
write-downs. Costs defrayed for internally generated goodwill and
internally generated brands are reported in profit for the year as the
costs arise.
Depreciation policies
Depreciation is linearly recognized in profit for the year over the estimated
useful life of the intangible asset provided the useful life can be
determined. Goodwill and other intangible assets with an indeterminate
useful life is tested for the need for write-down annually or as
soon as there are indications that the asset in question has declined
in value. Depreciable intangible assets are depreciated from the date
when the asset became available for use.
The estimated useful lives are:
Brands 10 years
Customer relations 3–5 years
Agency agreements 2–7 years
Site leasehold agreements During the term of the agreement
The useful life and residual value of assets are assessed annually.
Inventories
Inventories are valued at the lowest of acquisition value and net sale
value. The acquisition value of stocks are calculated using the first-in,
first-out method and include expenses arising with the acquisition
of the stock assets and their transport to their current location and
condition. For manufactured goods the acquisition value includes a
reasonable share of the indirect costs based on a normal capacity.
The net sale value is the estimated sale price in the current business
minus estimated costs of completion and bringing about the sale.
Impairment loss
The recognized value of Group assets is checked each balance sheet
day to assess whether there is a write-down requirement. IAS 36 is
applied to the testing of write-down requirements for other assets
besides financial assets which are tested in accordance with IAS 39,
assets for sale and divestment groups recognized which are tested in
accordance with IFRS 5, inventories, plan assets used for financing of
remuneration to employees and deferred tax receivables. The recognized
value of the above-mentioned excepted assets is tested applying
the respective standards.
Impairment test of tangible and intangible assets and participation
in subsidiaries, joint ventures, associated companies etc.
If write-down requirements are indicated, the recovery value of the
asset is estimated in accordance with IAS 36. Moreover, the recovery
value of goodwill, other intangible assets of indeterminate useful life
and intangible assets which are not yet ready for use is estimated
each year. If it is not possible to establish materially independent cash
flows for a certain asset, when testing for write-down needs the assets
are grouped at the lowest level where it is possible to identify materially
independent cash flow – a so-called cash-generating unit.
Write-downs are recognized when the book value of an asset or a
cash generating unit exceeds the recovery value. Write-downs are
expensed in profit for the year. Write-downs of assets attributable to a
cash-generating unit (group of units) are firstly allocated to goodwill,
followed by the proportional write-down of the other assets in the unit
(group of units).
The recovery value is the highest of utility value and fair value minus
cost of sale. When calculating utility value, future cash flows are discounted
with a discount factor that takes into consideration the risk-free
interest rate and the risks which are associated with the specific asset.
Impairment test for financial assets
Each time reports are drawn up the company assesses whether there
are objective indications that a financial asset or a group of financial
assets need to be written down. Objective indications partly consist of
occurred observable circumstances which have a negative impact on
possibilities of recovering the acquisition value and partly on significant
or lengthy decreases in the fair value of an investment in a financial
placing classified as a financial asset available for sale.
Accounts receivable that need to be written down are reported as
the present value of the anticipated future cash flows. Current receivables
are, however, not discounted. Write-downs charge profit for the
year.
Equity instruments classified as financial instruments available for
sale are written down if the fair value is significantly lower than the
acquisition value, or when the decline in value has been a long, drawn
out process.
When an equity instrument classified as a financial instrument available
for sale is written down, previously reported accumulated profit
or loss in equity via other comprehensive income is reclassified to
profit/loss for the year. The amount of accumulated loss that is reclassified
from equity via other comprehensive income to profit/loss for the
year consists of the difference between the acquisition cost and the
current fair value after reductions for any write-downs on a financial
asset which has already been reported in profit/loss for the year.
Reversed write-downs
A write-down is reversed if there are both indications that write-down
requirements no longer exist and assumptions upon which the calculation
of the recovery value were based have changed. However,
write-downs of goodwill are never reversed. Reversing is only performed
to the extent that the recognized value after reversing of the
asset does not exceed the recognized value which would have been
recognized deducted for depreciation where necessary if write-down
had not been made.
Write-downs of investments held to maturity or loans and receivables
recognized at amortized cost are reversed if a subsequent rise in
the recovery value may objectively be attributed to a circumstance
occurring after write-down was made.
Write-downs of equity instruments classified as financial instruments
available for sale are reversed via other comprehensive income
and not via profit/loss for the year. All revaluations that follow are
based on the written down value and are reported in other comprehensive
income.
Share capital
Repurchase of own shares
Holdings of own shares and other equity instruments are recognized
as a reduction in equity. Liquid funds from the divestment of such
equity instruments are recognized as an increase in equity. Any transaction
costs are charged directly to equity.
Dividends
Dividends are entered as liabilities after they have been approved by
the AGM.
Earnings per share
The calculation of earnings per share is based on consolidated profit
for the year attributable to the shareholders of the parent company
and on the weighted average number of outstanding shares during
the year. When calculating earnings per share after dilution, profit and
the average number of shares are adjusted to allow for the effects of
the diluting potential of shares which in the reported periods stem
from convertible certificates of claim and options issued to the
employees. Earnings per share after dilution are calculated by
increasing the number of shares with the total number shares the convertibles
represent and increasing profit with the reported interest
cost after tax.
Employee benefits
Defined contribution pension plans
Pension plans are only classified as defined contribution pension
PEAB ANNUAL REPORT 2012
51
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
plans where the company’s obligations are limited to the contributions
the company has undertaken to pay. In such cases the size of an
employee’s pension depends on the contributions the company pays
to the plan or to the insurance company and the return on capital
produced by the contributions. Consequently, the employees bear the
actuarial risk (that payments will be lower than expected) and the
investment risk (that the invested assets will not be adequate to produce
the expected return). The company’s obligations concerning
contributions to defined contribution plans are expensed in profit for
the year as they are earned by the employee performing work for the
company during the period.
Defined benefit pension plans
The Group’s defined benefit plans consist of the Swedish ITP Plan for
Salaried Staff which is managed through insurance with Alecta, pension
plans for a small number of executive personnel in Norway and
the AFP pension in Norway.
The Group’s recognized net obligations relating to defined benefit
plans refer to Norwegian pension plans and are calculated separately
for each plan through an assessment of the future payments which
employees have earned through their employment both during the
present and previous periods. Such payment is discounted to a net
present value deducted for the fair value of any plan assets.
The discount rate is the market rate of Norwegian government
bonds extrapolated to a period equivalent to that of the pension
obligations. Calculations of pension liabilities are performed by a
qualified actuary.
The so-called corridor rule is applied. The corridor rule involves that
part of the accumulated actuarial gains and losses which exceeds 10
per cent of the greatest of the obligation’s net present value and the
plan asset’s fair value being recognized in the income statement over
the expected average remaining working life of the employee covered
by the plan. Otherwise account is not taken of actuarial gains and
losses.
Net interest on pension liabilities and anticipated returns on associated
plans assets are recognized in net financial items. Other components
are recognized as income or expenses in operating profit.
Remuneration upon resignation or dismissal
A reserve for remuneration relating to the dismissal of staff is only
established if the company is demonstrably subject to, without any
realistic opportunity for avoidance, a formal detailed plan for the
termination of employment prior to the normal time.
Current remuneration
Current remuneration to employees is calculated without discount and
are reported as a cost when the related services are received.
A provision is recognized for the expected costs of participations in
profits and bonus payments when the Group has an applicable legal
or informal obligation to make such payments for services received
from employees and the obligations can be reliably estimated.
Provisions
Provisions are entered in the balance sheet when the Group is subject
to an actual or informal legal obligation as a consequence of a circumstance
occurring and it is likely that financial resources will be
required to meet the obligation and a reliable estimate of the amount
can be made.
Guarantees
Provisions for guarantees are recognized when the underlying products
or services are sold. The provisions are based on historical data
about the guarantees and a weighing up of the conceivable outcomes
relative to the probabilities that the outcomes are associated
with.
Restoration costs
These refer to the estimated restoration costs for rock and gravel
quarries after operations are terminated. The provision increases with
the quarried amount and is reversed after restoration is completed.
The reserved amount is expected to be utilised successively following
completion of quarrying.
Contingent liabilities
A contingent liability is recognized in accounts when there is a possi-
52 PEAB ANNUAL REPORT 2012
ble obligation attributable to events occurred, the occurrence of
which can only be confirmed by one or more uncertain future events,
or when there is an undertaking not recognized as a liability or provision
because it is not likely that the use of resources will be required.
The parent company’s accounting principles
The parent company has prepared its annual report in accordance
with the Swedish Company Accounts Act (1995:1554) and Swedish
Financial Reporting Board recommendation RFR 2 Accounting rules
for legal entities. The Swedish Financial Reporting Board statements
concerning listed companies are also applied. RFR 2 requires that the
parent company, in the annual report for the legal entity, use all EU
adopted IFRSs and interpretations as far as possible within the framework
of the Swedish Company Accounts Act, the Job Security Law
and with due regard for the relationship between accounting and
taxes. The recommendation states which exceptions and additions
must be made to the IFRSs.
The parent company accounting principles are unchanged in 2012
compared to 2011.
Differences between the Group’s and parent company’s
accounting principles
Differences between the Group’s and parent company’s accounting
principles are given below. The below stated accounting principles
for the parent company have been applied consistently to all periods
presented in the parent company’s financial reports.
Classification and design types
The parent company’s income statement and balance sheet are
presented in accordance with the design in the Swedish Company
Accounts Act. The difference to IAS 1 Design of financial reports
which is applied to the design of the consolidated financial reports is
primarily the reporting of financial income and expenses, fixed assets,
equity and the presentation of provisions under a separate heading in
the balance sheet.
Subsidiaries, joint ventures and associated companies
Participation in subsidiaries, joint ventures and associated companies
is recognized in the parent company applying the acquisition value
method. This means that acquisition costs are included in the reported
value of the holding in the subsidiary. In Group accounting acquisition
costs related to shares in subsidiaries are recognized directly in
profit and loss as they occur.
Financial guarantees
The parent company’s financial guarantee agreements mainly consist
of personal guarantees to the benefit of subsidiaries and joint ventures.
The parent company recognizess financial guarantee agreements
as provisions in the balance sheet when the company has an
obligation for which payment is likely to be required to adjust the
obligation.
Forestalled dividends
Forestalled dividends from subsidiaries are recognized when the
parent company alone is entitled to decide on the size of the dividend
and the company has taken a decision on the size of the dividend
before the parent company publishes its financial reports.
Tangible fixed assets
Tangible fixed assets in the parent company are recognized at acquisition
value minus accumulated depreciation and any write-downs
in the same way as for the Group but with the addition of possible
write-ups.
Leased assets
All leasing agreements in the parent company are recognized according
to the rules for operating leasing.
Employee benefits
Defined benefit pension plans
The parent company applies different assumptions for the calculation
of defined benefit plans than those in IAS 19. The parent company
complies with the provisions of the Job Security Law and the instructions
of the Swedish Financial Supervisory, as this is a precondition
for tax allowance rights.

Taxes
Untaxed reserves including deferred tax liabilities are recognized in
the parent company. On the other hand, in the Group accounts,
untaxed reserves are divided between deferred tax liabilities and
equity.
Shareholders’ contributions
Shareholders’ contributions are recognized directly in the equity of
the receiver and are activated in shares and participation in the provider
wherever write-downs are not required.
Group contributions
Received and given Group contributions are recognized in net financial
items as “Profit from shares in Group companies” and are specified
in note.
Note 2 Important estimates and
assessments
Group Management has together with the Board of Directors discussed
developments, selections and information regarding the
Group’s important accounting principles and assessments, as well as
the application of these principles and assessments.
Certain important accounting estimates made when applying the
Group’s accounting principles are described below.
The sources of uncertainty in the assessments given below refer to
uncertainties that entail a risk that the value of assets or liabilities may
be significantly adjusted in the coming fiscal year.
Peab’s operative business is sensitive to changes in, among other
things, volume and margins. The financial risks are connected to the
business’ tied-up capital, capital needs, interest risk and currency risk.
For more information about how the changes in important variables
affect Group profit after tax, see the sensitivity analysis on page 28.
Percentage of completion
Profit reported for contract projects in progress is calculated through
percentage of their completion based on the degree of completion of
the project. This requires that project revenue and costs can be calculated
in a reliable manner. A prerequisite is a well functioning system
for calculation, forecasting and project monitoring. Forecasts of the
final outcome of the project are critical estimates crucial to accounting
for the results of operations during the project. There is a risk that
the final results of a project deviate from those that have been successively
reported.
Impairment tests of goodwill
Groups’s total goodwill amounts to SEK 1,733 million (1,778). When
calculating cash generating units’ recoverable amount in order to
assess the need to write-down goodwill, several estimations and
assessments about the future have been made. These are presented
in note 16. As is apparent in the description in note 16 changes
beyond what can reasonably be expected during 2013 of the conditions
for these estimations and assessments could have a significant
effect on goodwill. This risk is, however, very low since the recoverable
values are for the most part higher than the reported values in those
cases where goodwill values are substantial.
Project and development property
Project and development property amounts to SEK 6,239 million
(5,180). The book value has been estimated based on prevailing price
levels per property at the respective location. Changes in supply and
demand may alter reported values and write-downs may be required.
For more information on Project and development property, see note
24.
Disputes
The actual outcome in disputed amounts may deviate from those,
according to the best estimate, recorded. For more information on
disputes, see note 33.
Taxes
Changes in tax legislation and changed praxis with regard to the
interpretation of tax laws can have a considerable impact on the size
of recorded deferred taxes. For more information on taxes, see note 14.
Accounting principles
Tenant-owner projects in Sweden
Tenant-owner associations that Peab signs construction contracts with
are autonomous and from Peab independent legal entities. Tenant-
owner associations are tools members of the association can use to
order, construct and manage a property and this is beneficial for the
tenant-owners. Peab signs contracts regarding the sale of land and
construction contracts with newly established tenant-owner associations
as clients. The contracts are signed by the board in the tenant-owner
association at the start up of construction. No member of
the board in the tenant-owner association represents Peab. Tenant-owner
associations can influence the design of the buildings
about to be constructed. A new obligatory financial plan is drawn up
if changes are made that significantly affect the financial prerequisites.
The contract gives the tenant-owner association normal client
rights in relation to Peab. Our overall assessment is that the contracts
meet the definition of a construction contract according to IAS 11.
Real estate agents handle the sales of the tenant rights through
direct contracts with the tenant-owner associations. The individual
home purchasers sign sub-contracts with the tenant-owner associations.
During construction the association finances the land and construction
with two building loans, one where the association takes out a
mortgage for the final financing and one that Peab stands surety for
regarding the home purchasers’ deposits.
The tenant-owner associations carry the entire value risk on the
property.
In addition, Peab guarantees that it will acquire any apartments
from the tenant-owner associations that remain unsold six months
after the building is complete, which is a requirement from the certifiers,
i.e. insurance companies and banks. This repurchase obligation
is limited since tenant-owner associations do not sign construction
contracts until most of the apartments are under contract with a home
purchaser and, in our experience, generally do not represent high
amounts. The few apartments bought by Peab are usually sold within
a short period of time without any other costs than a few months of
fees to the tenant-owner association. Reserves are made for possible
estimated costs. No other guarantees or obligations are given to the
tenant-owner association than the normal guarantees in conventional
construction contracts.
Other accounting standards and interpretations
New accounting standards and interpretations of existing standards
can lead to changes that wherein certain transactions in the future are
handled differently than according to current praxis.
Note 3 Income distributed by type
Income distributed by main income type
Group Parent company
MSEK 2012 2011 2012 2011
Income from contracting 41,910 38,946 – –
Sale of goods 1,653 1,423 – –
Sale of property developments
Crane, machine and
1,045 803 – –
vehicle rental 517 619 – –
Transport services 1,429 1,473 – –
Administrative services – – 96 99
Other 286 275 0 0
Total 46,840 43,539 96 99
PEAB ANNUAL REPORT 2012
53
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Note 4 Operating segment
Group business is divided into operating segments based on how the
company’s highest decision makers, i.e. executive management, follow
the business. From 1 January 2012 the Group has been divided
into four business areas; Construction, Civil Engineering Industry and
Property Development. The business areas are also operating segments.
Comparable figures for 2011 have been translated into the new
business areas.
The Group’s internal reporting is constructed so that executive management
follows every business area up to and including operating
profit. Capital frameworks for investments and project developments
are decided for each business area, in connection with drawing up the
budget for the year. These are then monitored during the year. Total
assets and liabilities are only followed up on Group level.
Segments are reported according to the percentage of completion
in projects since that reflects the way executive management and the
Board monitors operations. Peab applies IFRIC 15, Agreements for the
construction of real estate, in legal accounting. IAS 18, Revenue, are
applied for housing projects in Finland and Norway as well as our own
home developments in Sweden. Revenue from these projects are recognized
first when the home is handed over to the buyer. A bridge has
therefore been created in segment reporting between operative reporting
according to percentage of completion method and legal reporting.
For more information regarding principles for housing production,
see note 1.
Construction of our own development projects booked as an asset
in our own balance sheet is presented in segment reporting according
to the percentage of completion method. Unrealized internal
profits and net sales are eliminated within the Group. When our own
development projects are divested these effects are returned to the
Group and the capital gains from the sales are reported in business
area Property Development.
Internal pricing between Group segments is based on the“arm’s
length” principle, in other words, between well informed parties who
are independent of each other and interested in the realisation of the
transactions.
Segment’s operating profit include attributable items which can be
reasonably and reliably allocated to the segments. Non-allocated
items consist of financial income and expenses, and taxes. Assets
and liabilities are not divided into segments since they are only
followed up on Group level.
Segments
The Group consisted during 2012 of following business areas;
• Construction: Business area Construction comprises the Group’s
construction related services and own housing projects. Operations
are run in five geografic divisions in Sweden, one division in Norway,
one division in Finland and a Nordic division, Special projects,
which is specialized in larger, more complex projects. Production is
primarily comprised of housing for external customers and our own
housing developments but also public and commercial premises
and buildings. Customers are private property owners, municipalities
and companies as well as business area Project Development.
Operations in Construction also include construction related services
such as construction maintenance and repairs.
• Civil Engineering: Business area Civil Engineering works with the
construction of larger infrastructure and civil engineering projects
and smaller projects on the local market. Civil Engineering also
operates and maintains roads and municipal facilities. The operations
are run in geographical regions in Sweden, Norway and
Finland. Customers are the Swedish Transport Administration,
municipalities and local businesses.
• Industry: Business area Industry is run in seven product segments;
Asphalt, Concrete, Gravel and Rock, Transportation and Machines,
Rentals, Foundations and Industrial Construction. All of them work
on the Nordic construction and civil engineering markets. Customers
are mainly the Nordic Construction and Civil engineering companies.
Most of the business is generated on the Swedish market.
• Property Development: Group operations revolving around acquisitions,
development and divestiture of commercial property and
rental property in the Nordic region are run in business area Property
Development. During the year the business has been followed up
in three areas; Listed holdings, Partly owned companies and Wholly
owned subsidiaries and projects. Listed holdings during the year
has primarily consisted of shares in Brinova and Catena. Both
holdings were divested in 2012. Partly owned companies and joint
ventures consists of, for instance, Peab’s ownership in Tornet, in
Centur, in companies connected to the development of Arenastaden
in Solna as well as other holdings. Wholly owned subsidiaries and
projects consists of a number of holdings that include everything
from land for development where zoning is being worked out to
completed projects ready for sale.
Other operations are reported under “Group functions”.
Group 2012
Civil
Property
Total Adjustment for different
ConEngiDevelop­ Group
operative for accounting principles
MSEK
structionneering Industry ment funcions Elimination the Group for housing production Group
External sales 27,601 11,448 6,623 321 4 45,997 843 46,840
Internal sales 391 1,195 4,100 24 105 –5,815 0 0
Total income 27,992 12,643 10,723 345 109 –5,815 45,997 843 46,840
Operating costs
Profit from participation in associated
–28,056 –12,203 –9,990 –324 –338 5,782 –45,129 –790 –45,919
companies and joint ventures 13 16 –12 1 18 18
Other operating income 47 42 42 –3 128 128
Other operating costs –9 –3 –12 –12
Operating profit –13 440 788 51 –232 –32 1,002 53 1,055
Financial income 239
Financial expenses –443
Profit from participation in joint ventures –38
Pre­tax profit 813
Tax –88
Profit for the year 725
Other comprehensive income for the year –70
Total comprehensive income for the year 655
Depreciation –61 –51 –718 –15 –3 –848 –848
Write-downs
Significant non-cash items in addition to
depreciation and write-downs that are not
–67 –6 –36 –13 –109 –122
related to payments 53 –27 118 144 144
54 PEAB ANNUAL REPORT 2012

Group 2011
MSEK
Construction
Civil
Engineering
Industry
Property
Development
Group
funcions Elimination
Total
operative for
the Group
Adjustment for different
accounting principles
for housing production Group
External sales 26,855 10,397 6,576 168 19 44,015 –476 43,539
Internal sales 967 1,157 3,828 21 113 –6,086 0 0
Total income 27,822 11,554 10,404 189 132 –6,086 44,015 –476 43,539
Operating costs –27,213 –11,163 –9,763 –189 –342 6,065 –42,605 498 –42,107
Profit from participation in associated
companies and joint ventures –9 –1 3 31 24 24
Other operating income 58 58 58
Other operating costs –9 –9 –9
Operating profit 600 390 693 31 –210 –21 1,483 22 1,505
Financial income 158
Financial expenses –466
Profit from participation in joint ventures –2
Pre­tax profit 1,195
Tax –252
Profit for the year 943
Other comprehensive income for the year –207
Total comprehensive income for the year 736
Depreciation –49 –64 –676 –10 –4 –803 –803
Write-downs –38 –17 –58 –113 –113
Returned write-downs 7 1 8 8
Significant non-cash items in addition to
depreciation and write-downs that are not
related to payments –51 0 92 – –56 –15 –15
Geografic areas
Income från external customers are grouped in geographic areas according to where customers are located. Information concerning intangible
and tangible assets is based on geografic areas grouped according to where assets are located.
Group Sweden Norway Finland Other markets Total
MSEK 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
External sales 37,289 35,923 6,532 4,387 2,988 3,193 31 36 46,840 43,539
Intangible and tangible fixed assets 5,421 5,752 857 815 291 244 – – 6,569 6,811
Parent company Group functions Sweden
MSEK 2012 2011 2012 2011
Net sales 96 99 96 99
Note 5 Business combinations
2012
In 2012 Peab aquired a further 50 percent of Fastighets AB Bryggeriet
and 100 percent of P. Arvidssons Entreprenad AB. These acquisitions
individually do not have any material acquisition effect from a Group
perspective.
Total transferred compensation amounted to SEK 31 million.
In the period after acquisition the above subsidiaries contributed
SEK 3 million to Group income and SEK 1 million to profit after tax in
2012. If the acquisitions had taken place on 1 January 2012, the combined
effect of these acquisitions on Group income would have been
SEK 7 million and on profit for the year after tax by SEK 5 million.
During the year, the acquisition of assets occurred through the
acquisition of shares (asset acquisitions which are not operational)
which resulted in a cash flow of SEK -380 million.
Acquisition after the balance sheet date
There have been no acquisitions of importance in 2013.
2011
In 2011 Peab aquired a further 50 percent of Kokpunkten Fastighets
AB, 65 percent of Terje Hansen AS, 90 percent of K. Nordang AS, 91
percent of Telemark Vestfold Entreprenör AS, 100 percent of Norweigan
Aggregates AS, 100 percent of Hagström i Nås AB, 100 percent of
Mora–Orsa Byggtjänst AB, 100 percent of Gryttby Grus & Sand AB,
100 percent of Bjurholms Lastbilcentral Ekonomisk Förening and
operations at Ängelholm Airport. The aquisitions are part of Peab’s
vision to become the Nordic Community Builder through the strategy
of investing in profitable growth in the Nordic region.
The above acquisitions in 2011 individually do not have any material
acquisition effect from a Group perspective and the information on
acquisition effects is therefore given collectively.
In the period after acquisition the above subsidiaries contributed
SEK 607 million to Group income and SEK 8 million to profit after tax
in 2011. If the acquisitions had taken place on 1 January 2011, the
combined effect of these acquisitions on Group income would have
been SEK 824 million and on profit for the year after tax by SEK –18
million.
PEAB ANNUAL REPORT 2012
55
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Effects of acquisitions in 2011
The acquisitions’ preliminary effects on Group assets and liabilities
are shown below.
The acquired companies’ net assets at the time of acquisition:
2011
MSEK
Intangible fixed asset 70
Tangible fixed assets 148
Financial fixed assets 15
Deferred tax receivables 56
Project and development property 73
Inventories 19
Accounts receivable and other receivables 308
Liquid funds 50
Interest–bearing liabilities –149
Accounts payable and other current liabilities –371
Deferred tax liabilities –37
Net identifiable assets and liabilities 182
Previous holdings –31
Negative goodwill recognized as income –12
Group goodwill 59
Consideration transferred 198
Goodwill consists of, among other things, human resources and future
synergy effects regarding common systems and shared resources
which do not meet the criteria for recognition as intangible assets at
the time of acquisition. Goodwill value amounting to SEK 21 million
provides a fiscal depreciation deduction.
Transaction costs connected to acquisitions amount to SEK 1.3
million and relate to consulting fees concerning due diligence.
Transactions costs are reported in the income statement as sales and
administrative expenses.
Acquired receivables amount to SEK 308 million and consist mainly
of accounts receivables.
Consideration transferred
MSEK
Paid in cash 192
Conditional purchase sum 6
Total consideration transferred 198
During the year, the acquisition of assets occurred through the
acquisition of shares (asset acquisitions which are not operational)
which resulted in a cash flow of SEK –182 million.
The anticipated acquisition method has been used on acquisitions
that are short of 100 percent of equity when there is a put/call option
for the acquisition of the rest of the shares. The method means that
the companies are consolidated to 100 percent and the calculated
purchase price for the rest of the shares is reported as a liability.
Note 6 Other operating income
Group
MSEK
Capital gains from shares sold in Group companies/
2012 2011
joint ventures/ associated companies 54 –
Insurance compensation 21 –
Profit from sale of fixed assets
Exchange gains on receivables/liabilities relating
45 36
to operations 3 1
Negative goodwill – 12
Other 5 9
Total 128 58
56 PEAB ANNUAL REPORT 2012
Note 7 Other operating costs
Group
MSEK 2012 2011
Loss from sale of fixed assets
Exchange loss on receivables/liabilities relating to
–2 –5
operations –3 –1
Other –7 –3
Total –12 –9
Note 8 Government Grants
Group
Goverment grants received as compensation for operating costs
amounted in 2012 to SEK 25 million (24), and have reduced costs in
the income statement.
Note 9 Employees, personnel costs and
remuneration to senior officers
Payroll costs for employees
Group
MSEK 2012 2011
Wages and remuneration 6,243 5,906
Pension expenses, defined benefit plans 3 7
Pension expenses, defined contribution plans 504 449
Social insurance costs 1,815 1,709
Total 8,565 8,071
Average number of employees
No. of
employees
2012
Of were
men 2012
percent
No. of
employees
2011
Of were
men 2011
percent
Parent company
Sweden
Subsidaries
33 58 31 58
Sweden 12,611 91 12,512 92
Norway 1,335 90 1,192 90
Finland 846 88 822 89
Poland 3 67 3 67
Total in subsidaries 14,795 91 14,529 92
Total in Group 14,828 91 14,560 92
Gender distribution in the Board of Directors
and executive management
2012 2011
Percentage Percentage
of women of women
Parent company
The Board of Directors 18% 18%
Other senior officers
Group total
20% 0%
The Board of Directors 18% 18%
Other senior officers 13% 0%

Salaries and other payments divided between senior officers
and other staff, and social security costs
Parent company 2012
Board of
Directors and
senior officers
MSEK
(13 persons) 1)
Other
employees Total
Salary and remuneration 20 21 41
(of which variable
remuneration etc.)
(–) (0) (0)
Social security costs 13 15 28
– of which pension costs 5 7 12
Group 2012
Board of
Directors and
senior officers
MSEK
(16 persons) 1)
Salary and remuneration 27
(of which variable
remuneration etc.)
(–)
Social security costs 18
- of which pension costs 8
The Board and senior officers were only registered in the parent company
during 2011. The figures in the table below are the same for the parent
company and the Group and are therefore reported in the same table.
Group and parent company 2011
Board of
Directors and
senior officers
MSEK
(12 persons) 1)
Other
employees Total
Salary and remuneration 18 21 39
(of which variable
remuneration etc.)
(–) (1) (1)
Social security costs 13 19 32
– of which pension costs 6 11 17
No variable remuneration was paid to executive management or other
employees of the parent company in 2012 (0).
Benefits for senior officers
Remuneration and other benefits in 2012
Thousands, SEK
Basic salary/
Board remuneration
Variable
remuneration
Other
benefits
Pension
costs Total
Chairman of the Board,
Göran Grosskopf
Vice Chairman of the
510 510
Board, Mats Paulsson
Other members of
the Board
3,000 3,000
Annette Brodin Rampe 175 175
Karl-Axel Granlund 235 235
Svante Paulsson 175 175
Lars Sköld 175 175
Fredrik Paulsson 175 175
Anne-Marie Pålsson
Total related to Board
of Directors from the
175 175
parent company 4,620 4,620
CEO, Jan Johansson
Other senior officers,
remuneration from the
4,893 – 91 2,304 7,288
parent company 1) Other senior officers,
remuneration from
10,897 – 326 3,167 14,390
subsidiaries 6,239 960 82 2,578 9,859
Total
Remuneration from the
26,649 960 499 8,049 36,157
parent company
Remuneration from
20,410 – 417 5,471 26,298
subsidiaries 6,239 960 82 2,578 9,859
1) Comprises the number of persons that during the year received remuneration for the
period they were senior officers. During the period January to June there were seven
senior officers and during the period July to December there were eight.
Benefits for senior officers
Remuneration and other benefits in 2011
Thousands, SEK
Basic salary/
Board remuneration
Variable
remuneration
Other
benefits
Pension
costs Total
Chairman of the Board,
Göran Grosskopf
Vice Chairman of the
510 510
Board, Mats Paulsson
Other members of
the Board
3,000 3,000
Annette Brodin Rampe 175 175
Karl-Axel Granlund 235 235
Svante Paulsson 175 175
Lars Sköld 175 175
Fredrik Paulsson 175 175
Anne-Marie Pålsson
Total related to Board
of Directors from the
175 175
parent company
CEO until Maj 2011,
4,620 4,620
Mats Paulsson 1,680 33 1,713
CEO, Jan Johansson 2) 4,121 47 91 1,934 6,193
Other senior officers 1) Total remuneration
7,834 159 279 3,604 11,876
from parent company 18,255 239 370 5,538 24,402
1) Comprises the number of persons that during the year received remuneration for the
period they were senior officers. During 2012 there were three other senior officers.
2) Wages for the period Jan-May 2011 amount to SEK 1,636 thousand, wages for the
period Jun-Dec 2011 amount to SEK 2,485 thousand. Pension costs for the period
Jan-May 2011 amount to SEK 623 thousand, pension costs for the period Jun-Dec 2011
amount to SEK 1,311 thousand.
Comments on the tables
From time to time the CEO and other senior officers may be offered
variable remuneration. Other benefits refer to company cars.
Pension costs refer to costs charged to the year. See note 32 for
additional information about pensions. During the first half year of
2012, the group senior officers consisted of seven persons, of which
four persons in the parent company. Thereafter the group of senior
officers consisted of eight persons, of which five persons in the
parent company.
The Board of Directors
The 2012 AGM decided on a remuneration to external members of
the Board of a maximum of SEK 4,620 thousand (4,620), of which
SEK 450 thousand (450) consisted of remuneration to the Chairman
of the Board. A remuneration of SEK 2,765 thousand, like last year,
was decided as a special compensation to the Vice Chairman of the
Board for his availability to the Group in matters concerning customers
and the market. Remuneration to all other members of the Board
was a maximum of SEK 4,440 thousand (4,440), and SEK 180 thousand
(180) for work in the remuneration and finance committees.
During the year total remuneration amounted to SEK 4,620 thousand
(4,620).
Remuneration is not paid to members of the Board who are permanent
employees of the Group. There are no agreements on future
pension/retirement remuneration or other benefits either for the
Chairman of the Board of Directors or for other members of the Board.
Principles for the remuneration of senior officers
The group other senior officers is comprised of eight senior officers
who are members of executive management. During the first half of
2012 this group consisted of seven persons. The principles for remuneration
of senior officers were adopted by the AGM 2012.
Remuneration to the CEO and other senior officers consists of a
fixed salary, eventual variable remuneration, extra health insurance
and those benefits otherwise enjoyed by other Peab employees as
well as pension. All pension obligations are defined contribution
pensions. The total remuneration paid to each senior officer is based
on market terms and the responsibilities and qualifications of the
senior officer.
From time to time, senior officers may be offered variable remuneration.
Such variable remuneration may not exceed 60 percent of the
PEAB ANNUAL REPORT 2012
57
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
regular salary and must above all be based on the pre-tax profit of the
Peab Group. Variable remuneration is decided upon each financial
year.
Variable remuneration is settled the year after being earned and
may either be paid out as salary or as a one-off pension premium. If
variable remuneration is paid out on a one-off basis, certain adjustments
are made so as to neutralize the total cost for Peab.
Notice on the part of Peab is a maximum of 24 months and senior
officers are required to give a maximum of six months notice. If a severance
pay is paid the total remuneration for salary during the period
of notice and severance pay may not exceed 24 monthly wages.
Variable remuneration
Variable remuneration for the CEO and other senior officers is related
to meeting profit targets for the Group. Variable remuneration for the
financial year 2012 was maximized at SEK 2,880 thousand (2,800)
for the CEO and a total of SEK 7,326 thousand (6,525) for the other
senior officers.
The CEO
The CEO of Peab received a salary including benefits of SEK 4,984
thousand (4,212) in total in 2012.
No variable remuneration for 2012 was paid (SEK 47 thousand).
Pension premiums paid out for the CEO amounted to SEK 2,304
thousand (1,934) during the year.
Pension commitments for the CEO give him the right to pension
from the age of 65. There is a supplementary commitment whereby
the company or the CEO can trigger early retirement from the age of
62. Annual pension premiums of 47 percent of basic salary are paid
for these commitments. These pensions are part of defined contribution
plans.
Notice on the part of Peab is a maximum of 24 months and the
CEO is required to give a maximum of six months notice. If a severance
pay is paid the total remuneration for salary during the period of
notice and severance pay may not exceed 24 monthly wages.
Other senior officers
The term other senior officers refers to the seven other persons that
together with the CEO make up Peab’s executive management.
Salary and other remuneration including benefits for other senior
officers amounted to SEK 17,544 thousand (8,113). Variable remuneration
for 2012 for two persons that during the year were members of
executive management amounted to SEK 960 thousand. For 2011
variable remuneration amounted to SEK 159 for all other senior officers.
Pension premiums paid out for other senior officers amounted to
SEK 5,745 thousand (3,604) during the year.
There are early retirement pension commitments for other senior
officers. All pension benefits are unassailable.
Pension commitments for other senior officers give them the right to
pension from the age of 65. There is a supplementary commitment
whereby the company or the senior official can trigger early retirement
from the age of 62. Annual pension premiums of 47 percent of basic
salary are paid for these commitments. These pensions are part of
defined contribution plans.
If given notice by the company other senior officers are entitled to a
maximum of two years’ salaries deducted by salaries from new
employers. The period of notice from senior officers is six months.
Long-term incentive program (LTI program)
From time to time, senior officers may be offered to the opportunity to
participate in a LTI program. In order to participate in a LTI program
the senior officer must reserve at least 50 percent of their annual variable
remuneration as a lump sum pension premium. Annual income
from the LTI program may not exceed 40 percent of the fixed annual
salary. Income from the LTI program and the provision of at least 50
percent of the annual variable remuneration are placed in a pension
savings connected to the Peab share. During 2011 468 persons,
including senior officers, were offered to participate in a LTI program.
The LTI program runs until 2014 with annual reviews of targets for the
Group. The targets were not met in 2012 and therefore no provisions
were made for the LTI program.
58 PEAB ANNUAL REPORT 2012
Profit sharing foundation
In 2007, Peab founded a profit sharing foundation. The object of the
profit sharing foundation is to create increased participation through
employee co-ownership and to better our employees’ financial situation
after retirement. Individual shares in profits will be proportional to
the employee’s working hours. Upon retirement employees can withdraw
their share in the foundation. Under the foundation’s investment
policy, its assets must be mainly invested in shares in Peab.
Peab has not allocated any funds in 2011 and 2012 for profit sharing.
Senior officers have not been entitled to benefits from the profit
sharing foundation.
Convertible Promissory Notes 2007/2012
At the AGM 2007 in Peab AB it was decided to issue and offer convertibles
to all employees. The convertibles ran from 1 December
2007 until 30 November 2012 and amounted to a nominal value of
SEK 598 million. There have been no conversions to shares and the
loan has been paid in full.
Note 10 Fees and cost remunerations to
auditors
Group Parent company
MSEK
KPMG AB
2012 2011 2012 2011
Auditing assignments
Other audit-related assign-
17 14 5 3
ments 2 3 1 1
Other assignments 3 1 1 0
Other
Auditing assignments 0 1 – –
Tax advisory services 1 – – –
Total 23 19 7 4
Auditing assignments refer to examination of the annual accounts,
accounting and administration by the Board of Directors and the
CEO, other work which it is the business of the company auditor to
perform and advice and other assistance stemming from observations
made in connection with such examination of the performance of
other similar work.
Note 11 Operating costs divided by type
Group
MSEK 2012 2011
Material 9,975 9,969
Subcontractors 13,954 12,075
Personnel expenses 10,135 9,729
Other production costs 10,133 9,040
Depreciation 848 803
Write-downs 122 113
Other operating costs 752 378
Total 45,919 42,107

Note 12 Net financial income/expense
Group
MSEK 2012 2011
Interest income 1) Dividend received related to financial assets
132 131
valued at fair value
Net profit related to financial assets valued
34 20
at fair value 2) Change in value of cash flow hedges
31 4
transferred from equity 17 –
Change in value currency swaps (trading) 8 3
Other items 17 0
Financial income 239 158
Interest expenses 3) Net loss related to financial assets valued
–418 –358
at fair value 2) – –85
Change in value currency swaps (trading) 0 –1
Net exchange rate fluctuation –2 –5
Other items –23 –17
Financial expenses –443 –466
Profit from participation in joint ventures 4) –38 –2
Net financial income/expense
1) Refers to interest from items valued at accrued acquisition value.
–242 –310
2) Of which shareholding in Brinova Fastigheter AB SEK 27 million (–81).
3) Refers to interest from items valued at accrued acquisition value except current interest
net from the interest coupon portion of interest swaps totaling SEK –11 million (–6).
4) Interest expenses on loans from joint venture companies have been offset against profit
from participation in joint venture companies. There is, according to the contracts, a
legal right for offsets in the balance sheet accounts between the debt to joint venture
companies and holdings of preference shares in joint venture companies.
Profit from participation in Group companies
Parent company
MSEK 2012 2011
Dividends 38 1,150
Paid Group contribution –1,278 –169
Received Group contribution 1,484 1,003
Write-downs 1) –346 –122
Capital gains from sales 14 –
Total
1) For more information about write-downs, see note 42.
–88 1 862
Profit from participation in associated companies
Parent company
MSEK 2012 2011
Dividends 4 136
Write-downs – –130
Capital gains from sales 23 –
Total 27 6
Profits from securities and receivables recorded as fixed assets
Parent company
MSEK 2012 2011
Dividends 28 20
Interest income, external 1) 2 0
Interest income, Group companies 1) Net profit/loss related to financial assets valued
36 39
at fair value 2) Net profit related to financial assets availa-
31 –85
ble-for-sale 4 –
Exchange rate gain/loss –4 3
Total 97 –23
1) Interest income refers to interest from items valued at accrued acquisition value.
2) Refers to shareholdings in Brinova Fastigheter AB SEK 27 million (–81).
Interest expenses and similar profit/loss items
Parent company
MSEK 2012 2011
Interest expenses, external 1) –30 –33
Interest expenses, Group companies 1) –171 –185
Other items –8 –8
Total –209 –226
1) Interest expenses refer to interest from items valued at accrued acquisition value.
Note 13 Appropriations
Parent company
MSEK 2012 2011
Transfer to tax allocation reserve
Change in additional depreciations, machinery
– –156
and equipment 0 0
Total 0 –156
Note 14 Taxes
Recognized in the income statement
Group
MSEK
Current tax expenses/income
2012 2011
Tax expenses for the year –76 –278
Adjustment of tax attributable to previous years –17 40
–93 –238
Deferred tax expenses/income
Temporary differences
Capitalised tax value of loss carry-forwards
–81 –9
during the year
Utilisation of capitalised tax value of loss
37 16
carried forwards –63 –41
Changed tax rates 80 –1
Revaluation of reported deferred tax values 32 21
5 –14
Total reported tax expenses in the Group –88 –252
Parent company
MSEK
Current tax expenses/income
2012 2011
Tax expenses for the year –3 –124
Adjustment of tax attributable to previous years 0 –3
–3 –127
Deferred tax income
Temporary differences 3 2
Total reported tax expenses/income in the
3 2
parent company 0 –125
PEAB ANNUAL REPORT 2012
59
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Reconciliation of effective tax
Group
MSEK 2012 2012 (%) 2011 2011 (%)
Pre­tax profit
Tax with tax rate for the parent
813 1,195
company
Effect of other tax rates for
–214 26.3 –314 26.3
foreign subsidiaries 4 –0.5 3 –0.3
Non-deductible expenses –116 14.3 –129 10.8
Tax exempt income
Deductible non profit-influencing
137 –16.9 88 –7.4
items
Revaluation of previous years
28 –3.4 34 –2.8
reported values of deferred taxes
Utilized non-capitalised loss
32 –3.9 21 –1.8
carry-forwards 4 –0.5 2 –0.2
Tax attributable to previous years –17 2.1 40 –3.3
Changed tax rates
Increase in loss carry-forwards
without corresponding activation
80 –9.8 –1 0.1
of deferred tax
Standard interest on tax
–42 5.2 –1 0.1
allocation reserve
Adjustment of net profit for joint
–1 0.1 0 0.0
ventures included in pre-tax profit 17 –2.1 5 –0.4
Reported effective tax –88 10.8 –252 21.1
Tax attributable to other comprehensive income
Group Pre­tax Tax After tax Pre­tax Tax After tax
MSEK 2012 2011
Translation difference for the year when translating foreign
operations –12 4 –8 –1 1 0
Loss from exchange risk hedging in foreign operations –2 1 –1 1 1
Financial assets available for sale –87 –87 –17 –17
Cash flow hedges
Shares in associated companies/JV’s other comprehensive
17 10 27 –204 15 –189
income –1 –1 –2 –2
Other comprehensive income –85 15 –70 –223 16 –207
Reported in the balance sheet
Deferred tax recoverables and tax liabilities
Parent company
MSEK 2012 2012 (%) 2011 2011 (%)
Pre­tax profit
Tax in accordance with tax rate
–227 1,417
for the parent company 60 26.3 –373 26.3
Non-deductible expenses –100 44.0 –94 6.6
Tax exempt income
Standard interest on tax
41 –18.1 345 –24.3
allocation reserve –1 0.4 – –
Tax attributable to previous years 0 0.0 –3 0.2
Reported effective tax 0 0.0 –125 8.8
Group Deferred tax recoverables Deferred tax liabilities Net
Changes recognized in
income for the year
MSEK 2012 2011 2012 2011 2012 2011
Tangible assets –376 –454 –376 –454 83
Intangible assets –79 –96 –79 –96 11
Project and development properties –39 –40 –39 –40 11
Work-in-progress 12 7 12 7 5
Inventories –8 –5 –8 –5 –2
Accounts receivable 47 7 47 7 40
Recognized but not invoiced income –12 –18 –12 –18 7
Other receivables 3 2 3 2 1
Interest-bearing liabilities 116 145 116 145 –29
Provisions for pensions 2 3 2 3 –1
Provisions 61 31 61 31 29
Invoiced income not yet recognized 57 –7 57 –7 65
Other liabilities 139 100 139 100 39
Loss carry-forwards 197 190 197 190 –5
Tax allocation reserve –84 –83 –84 –83
Safety reserve –249 –249 –249
Tax recoverables/tax liabilities 634 485 –847 –703 –213 –218 5
Offset –403 –327 403 327 0 0
Net 231 158 –444 –376 –213 –218 5
60 PEAB ANNUAL REPORT 2012

Deferred
Deferred
Changes recognized in
Parent company
tax recoverables
tax liabilities Net
income for the year
MSEK 2012 2011 2012 2011 2012 2011
Interest-bearing liabilities – – – –2 – –2 2
– – – –2 – –2 2
The specifications in the above tables have been reclassified in comparison with the previous year.
Ongoing correspondence between the Swedish Tax Authorities as
well as assessments made together with external experts on the
deductability of individual deductions have been taken into consideration
when evaluating deferred tax receivables. Deferred tax attributable
to deductions where the right to deduct is uncertain has not
been reported as an asset. The value of the deferred tax from these
deductions per 2012-12-31 is approximately SEK 355 million (386).
Temporary differences between reported and fiscal value of
participations directly owned by the parent company
Normally there are no temporary differences between reported and
fiscal values of shares directly owned by the parent company for
business purposes, i. e. neither upon divestment or distribution of
dividends, as such transactions are not taxable. Therefore no
deferred tax has been reported for these holdings.
Note 15 Earnings per share
Earnings per share
Before dilution After dilution
SEK 2012 2011 2012 2011
Earnings per share 2.47 3.26 2.47 3.26
Earnings per share before dilution
The calculation of earnings per share for 2012 was based on profit for
the year attributable to the parent company’s ordinary shareholders
amounting to SEK 729 million (943) and on a weighted average
number of outstanding shares in 2012 of 294,962,746 (288,929,907).
Earnings per share after dilution
The calculation of earnings per share for 2012 was based on profit for
the year attributable to the parent company’s ordinary shareholders
amounting to SEK 759 million (975) and on a weighted average
number of outstanding shares in 2012 of 302,993,347 (297,729,907).
Outstanding convertible promissory notes of 8,800,000 shares
matured on 30 November 2012 and there was no conversion to shares.
The two components were calculated as follows:
Weighted average numbers of outstanding ordinary shares before
dilution 1)
Thousands of shares
Total number of outstanding ordinary shares per
2012 2011
1 January
Acquisition/disposal of own shares during the
294,963 286,742
year
Total number of outstanding shares per
– 8,221
31 December
Weighted average numbers of outstanding
294,963 294,963
ordinary shares before dilution 294,963 288,930
Unreported deferred tax receivables
The fiscal value of loss carry-forwards for which deferred tax receivables
have not been reported in the balance sheet was SEK 1 million
(1) on 2012-12-31 and refers to the Polish and Latvian operations.
These deferred tax receivables are due in the years 2013-2017.
Considering the losses in recent years in these operations and the
very limited business planned for the future it is not likely that the
deferred tax receivables can be offset against future taxable profits.
Because the Norwegian operations have in recent years reported
losses, the loss carry-forwards of 2012 amounting to SEK 147 million
have not been activated since part of total loss carry-forward is
uncertain if they can be used depending on taxable future surplusses.
The fiscal value of the unactivated loss carry-forward is
SEK 41 million.
Profit attributable to the parent company’s ordinary
shareholders after dilution
MSEK
Profit attributable to the parent company's ordinary
2012 2011
shareholders
Interest rate effect on convertible promissory
729 943
notes (after tax)
Profit attributable to the parent company's
30 32
ordinary shareholders after dilution 759 975
Weighted average number of outstanding ordinary shares
after dilution 1)
Thousands of shares
Weighted average number of outstanding ordinary
2012 2011
shares before dilution 294,963 288,930
Effect of converting convertible promissory notes
Weighted average numbers of outstanding
8,030 8,800
ordinary shares after dilution
1) Repurchased shares are not included in the calculation.
302,993 297,730
PEAB ANNUAL REPORT 2012
61
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Note 16 Intangible fixed assets
Group 2012
MSEK Goodwill Brands
1) Annual depreciation is reported in the following lines of the income
statement:
2012 2011
Production costs –60 –56
Sales and administrative expenses –2 –8
Total –62 –64
Intangible fixed assets, external purchase
Customer
relations
Tenancies
gravel and
rock quarries
Other
intangible
assets
Intangible fixed
assets, internally
developed
Industrial
construction Total
Opening acquisition value 1,840 240 81 202 55 94 2,512
Purchases/acquisition of companies 16 16
Revaluation –6 –6
Translation differences for the year 1 1 1 3
Closing accumulated acquisition value 1,851 241 82 202 55 94 2,525
Opening depreciation – –84 –52 –27 –28 –28 –219
Depreciation for the year 1) –23 –12 –8 –9 –10 –62
Reclassifications –3 3 0
Closing accumulated depreciation – –110 –64 –32 –37 –38 –281
Opening write-downs –62 – – – – – –62
Revaluation 4 4
Write-downs for the year 2) –59 –59
Reclassifications –1 –1
Closing accumulated write-downs –118 – – – – – –118
Closing book value 1,733 131 18 170 18 56 2,126
Group 2011
MSEK Goodwill Brands
Intangible fixed assets, external purchase
Customer
relations
Tenancies
gravel and
rock quarries
Other
intangible
assets
Intangible fixed
assets, internally
developed
Industrial
construction Total
Opening acquisition value 1,775 215 71 202 50 93 2,406
Purchases/acquisition of companies 82 25 14 12 1 134
Sales/disposals –15 –4 –19
Reclassifications –1 –7 –8
Translation differences for the year –1 –1
Closing accumulated acquisition value 1,840 240 81 202 55 94 2,512
Opening depreciation – –62 –43 –16 –22 –18 –161
Sales/disposals 4 4
Depreciation for the year 1) –22 –13 –11 –8 –10 –64
Reclassifications 2 2
Closing accumulated depreciation – –84 –52 –27 –28 –28 –219
Opening write-downs –55 – – – – – –55
Sales through companies sold 15 15
Write-downs for the year 2) –21 –21
Reclassifications –1 –1
Closing accumulated write-downs –62 – – – – – –62
Closing book value 1,778 156 29 175 27 66 2,231
62 PEAB ANNUAL REPORT 2012
2) Annual write-downs are reported in the following lines of the income
statement:
2012 2011
Production costs –59 –21
Sales and administrative expenses – –
Total –59 –21

Goodwill impairment testing in cash generating units
The balance sheet of the Peab Group 2012-12-31 included total
goodwill of SEK 1,733 million (1,778). Cash generating units with
significant reported goodwill values compared with the total reported
values of the Group per segment are specified below.
MSEK
Construction
2012 2011
Nybyggarna i Nerike AB 22 22
Other units in Sweden 62 65
Peab Oy Group 56 68
Björn Bygg AS Group 58 57
K Nordang AS 39 22
Telemark Vestfold Entreprenör AS 24 24
Other units in Norway
Civil Engineering
31 60
Berg & Falk AB 17 17
Olof Mobjer Entreprenad AB 15 15
Markarbete i Värmland AB 13 13
Other units in Civil Engineering
Industry
95 99
Peab Industri Group
Property Development
1,280 1,295
Ängelholms Flygplats AB 21 21
Total 1,733 1,778
Goodwill write-downs
Group goodwill write-downs in 2012 amounted to SEK 59 million (21).
In 2012 write-downs of SEK 43 million (2) stem from Construction operations,
SEK 13 million (3) are related to Industry and SEK 3 million (16)
to Civil Engineering. Most of the write-downs in 2012 are a result of
low profitability in existing operations. Write-downs from last year were
primarily generated from shutting down operations. For the cash generating
units where the recovery value was calculated and no write-down
need was identified, company management has concluded that no
feasible possible changes in important assumptions would result in a
recovery value lower than the recorded value.
Method for calculating recovery value
The recovery value of all goodwill values has been based on the calculation
of useful value for the cash generating units. The calculation
model is based on a discount of forecasted future cash flows relative to
the unit’s reported values. These future cash flows are based on 5 year
forecasts produced by the management of the respective cash generating
unit. Goodwill impairment tests have an infinite time horizon and
extrapolation of cash flow for the years after the forecast was calculated
on a growth rate of 2 percent from year 6 onwards.
Important variables when calculating useful value
The following variables are important and common to all cash generating
units in the calculation of useful value.
Sales: The competitiveness of the business, expected changes in the
construction business cycle, general financial conditions, investment
plans of public and municipal customers, interest rate levels and local
market conditions.
Operating margin: Historic profitability levels and operative efficiency,
access to key personnel and qualified manpower, the ability to cooperate
with customers/customer relations, access to internal resources,
raises in salary, materials and subcontractor costs.
Working capital requirements: Individual case assessment of whether
the working capital reflects the company’s needs or whether it should
be adjusted for the forecast period. A reasonable or cautious assumption
for future development is that it parallels net sales growth. A high
level of internally developed projects may entail a greater need for
working capital.
Investment needs: Assessment of the company’s investment needs are
based on the investments required to achieve the initially forecasted
cash flow, i.e. not including expansion investments. Normally investment
levels are equivalent to the depreciation rate of tangible fixed assets.
Tax burden: The tax rate in forecasts is based on Peab’s anticipated
tax situation in Sweden, Norway and Finland in terms of tax rates, loss
carry-forwards etc.
Discount rate: Forecasted cash flows and residual values are discounted
to current value applying a weighted average cost of capital
(WACC). Interest rates on borrowed capital has been adjusted to the
market in each country. The required return on equity is based on the
Capital Asset Pricing Model. A pre-tax weighted discount rate has been
used in calculating useful value. The discount rate used on cash generating
units in Sweden is an average of 6.1 percent (6.6), in Norway 7.3
percent (7.4) and in Finland 6.4 percent (6.7).
Note 17 Tangible fixed assets
Group 2012
MSEK
Buildings Machinery Construc-
and and tion in
land equipment progress Total
Opening acquisition value 2,331 6,540 47 8,918
Purchases 19 843 75 937
Purchases through acquired
companies 6 35 41
Sales/disposals –22 –448 –470
Sales through companies sold –13 –13
Reclassifications
Translation differences for the
–215 25 –70 –260
year
Closing accumulated
2 2
acquisition value 2,106 6,997 52 9,155
Opening depreciation
Accumulated depreciation in
–544 –3,778 – –4,322
acquired companies –20 –20
Sales/disposals 8 396 404
Sales through companies sold 5 5
Reclassifications 8 14 22
Depreciation for the year
Closing accumulated
–78 –708 –786
depreciation –601 –4,096 – –4,697
Opening write-downs –5 –11 – –16
Sales/disposals 2 2
Write-downs for the year 1) Closing accumulated
–1 –1
write-downs –4 –11 – –15
Closing book value 1,501 2,890 52 4,443
PEAB ANNUAL REPORT 2012
63
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Group 2011
MSEK
Buildings Machinery Construc-
and and tion in
land equipment progress Total
Opening acquisition value 2,572 5,744 351 8,667
Purchases 80 965 93 1,138
Purchases through acquired
companies 35 173 208
Sales/disposals –41 –356 –397
Sales through companies sold –7 –66 –73
Reclassifications
Translation differences for the
–310 17 –331 –624
year
Closing accumulated
2 –3 –1
acquisition value 2,331 6,540 47 8,918
Opening depreciation
Accumulated depreciation in
–471 –3,332 – –3,803
acquired companies –6 –68 –74
Sales/disposals 10 267 277
Sales through companies sold 17 17
Reclassifications –2 1 –1
Depreciation for the year
Translation differences for the
–75 –664 –739
year
Closing accumulated
1 1
depreciation –544 –3,778 – –4,322
Opening write-downs –10 –7 – –17
Reclassifications 5 5
Write-downs for the year 1) Closing accumulated
–4 –4
write-downs –5 –11 – –16
Closing book value 1,782 2,751 47 4,580
1) Annual write-downs are reported in the following lines of the income
statement:
2012 2011
Production costs 0 –4
Sales and administrative expenses –1 –
Total –1 –4
Parent Company
Machinery and
equipment
MSEK 2012 2011
Opening acquisition value 8 8
Closing accumulated acquisition value 8 8
Opening depreciation –6 –6
Depreciation for the year 0 0
Closing accumulated depreciation –6 –6
Closing book value 2 2
Group financial leasing
Companies in the Group lease vehicles, construction machinery and
other production equipment through many different financial leasing
agreements. The recorded value related to Group financial leasing
amounted to SEK 601 million (582). When the leasing agreements
terminate Peab normally has a liability to buy equipment at its residual
value. The leased assets are owned by the lessors.
64 PEAB ANNUAL REPORT 2012
Note 18 Participation in associated
companies
Group
MSEK 2012 2011
Acquisition value carried forward 88 208
Disposal of associated companies –83 –
Dividend for the year –5 –136
Profit from participation in associated companies 1 18
Translation differences for the year –1 –2
Book value carried forward – 88
Specifications of Group’s holdings in associated companies
2012 2011
Company Share Book value, Share Book value,
Registered office, Corp.Id.no
Catena AB
percent MSEK percent MSEK
Gothenburg, 556294-1715 – – 19.97 88
Total – 88
Consolidated values regarding the Group’s share of income and
costs, assets and liabilities from participation in joint ventures is specified
below.
MSEK 2012 2011
Income 6 25
Expenses –5 –7
Profit 1 18
Fixed assets – 137
Current assets – 21
Total assets – 158
Current liabilities – 7
Long-term liabilities – 63
Total liabilities – 70
Net assets/liabilities – 88
Associated company participation has been reported in Peab with a
quarterly delay since Catena is a listed company. Peab has divested
its holdings in Catena AB in 2012.
Parent company
MSEK 2012 2011
Acquisition value carried forward 133 263
Disposal of associated companies –133 –
Write-downs – –130
Book value carried forward – 133
Specification of parent company’s direct holding of shares in
associated companies
2012 2011
Company Share Book value, Share Book value,
Registered office, Corp.Id.no
Catena AB
percent MSEK percent MSEK
Gothenburg, 556294-1715 – – 19.97 133
Total – 133

Note 19 Participation in joint ventures
Specification of Group holdings of participations in joint ventures
Company,
Share
percent
Book
value,
MSEK
Share
percent
Registered office, Corp.ID.no 2012 2011
Book
value,
MSEK
TCL S.à.r.l.
Luxemburg, 19982401227 45 280 45 279
S:t Eriks AB
Staffanstorp, 556203-4750 44.3 250 44.6 239
Nyckel 0328 AB
Stockholm, 556871-6541 33.3 169 30 210
Visio Property Ltd
Buckingham, 3871355 50 145 – –
Mountain Resort Trysil AS
Trysil, 996 284 115 50 54 50 25
Dockan Exploatering AB
Malmö, 556594-2645 33 41 33 41
Sicklaön Bygg Invest AB
Solna, 556911-5479 50 40 – –
Fotbollsstadion i Malmö Fastighets AB
Malmö, 556727-4641 25 39 50 78
Telemark Vestfold Utvikling AS
Skien, 987 208 279 33.4 32 33.4 29
Fastighets AB Centur
Stockholm, 556813-6369 50 30 50 16
Fastighets AB Partille 11
Gothenburg, 556518-4354 50 29 50 30
Österåkers Näs Fastighets HB
Stockholm, 969723-2107 30 28 30 30
Log. Tostarp AB
Helsingborg, 556667-8784 50 23 50 22
Ale Exploatering AB
Gothenburg, 556426-2730 50 16 50 22
Stora Hammar Exploatering AB
Vellinge, 556763-4216 50 12 50 12
Fjällvärme i Lindvallen AB
Malung-Sälen, 556536-1895 50 12 50 12
I Tolv AB
Eksjö, 556513-2478 35 12 35 5
Svenska Fräs & Asfaltsåtervinning
SFA AB
Markaryd, 556214-7354 30 11 30 9
Bondistranda Utvikling AS
Oslo, 992 512 741 50 9 50 0
Skiab Invest AB
Malung-Sälen, 556848-5220 50 8 50 9
Kungsörs Grus AB
Kungsör, 556044-4134 50 7 50 7
Sjökrona Exploatering AB
Helsingborg, 556790-5624 25 6 25 6
Skanör Invest AB
Båstad, 556713-5743 50 6 50 6
KB Älvhögsborg
Trollhättan, 916899-2734 50 5 50 5
Hälsostaden i Ängelholm AB
Ängelholm, 556790-5723 33.3 5 33.3 5
Nya Bara Utvecklings AB
Bara, 556858-4311 50 5 – –
Kirkebakken Vest AS
Horten, 988 796 174 50 4 50 4
Tomasjord Park AS
Tromsö, 983 723 853 50 3 50 3
Log. Sunnanå AB
Helsingborg, 556699-7788 50 3 50 3
Book
Book
Share value, Share value,
Company,
percent MSEK percent MSEK
Registered office, Corp.ID.no
KB Blåsut Åstorp
2012 2011
Stockholm, 969691-9043
Mälarstrandens Utvecklings AB
50 3 50 2
Västerås, 556695-5414
Expressbetong AB
44 2 44 2
Halmstad, 556317-1452
Östersund Sport & Eventarena AB
50 2 50 2
Östersund, 556707-0239
Byggutveckling Svenska AB
33.3 1 33.3 1
Linköping, 556627-2117
Fastighets AB ML4
50 1 50 1
Malmö, 556786-2155
Trysil Suiter AS
50 1 50 0
Trysil, 991 276 068
Trysil Hotellutvikling AS
50 1 – –
Trysil, 987 054 409
Fastigheten Preppen HB
50 –17 – –
Gothenburg, 969684-0983
Råsta Holding AB
– – 50 18
Solna, 556742-6761
Floodelokka 1 KS
– – 37.5 72
Skien, 955 230 658
Hemsö Gransångaren Fastigheter AB
– – 45 13
Stockholm, 556591-2994
Fastighets AB Bryggeriet
– – 46 8
Gothenburg, 556141-6115
Dampskipskaia H-fest AS
– – 50 4
Hammerfest, 988 780 499
Floodelokka 1 AS
– – 50 2
Skien, 995 230 666 – – 50 2
Others no specified items 1 1
Total 1,279 1,235
The items below show Group value of participation in the income and
costs, assets and liabilities of joint ventures.
MSEK 2012 2011
Income 1,017 1,108
Expenses
Less: Result from property projects reported
–936 –1,102
in gross profit –102 –
Result –21 6
Fixed assets 5,888 2,746
Current assets 1,423 1,871
Total assets 7,311 4,617
Long-term liabilities 5,136 2,869
Current liabilities 896 513
Total liabilities 6,032 3,382
Net assets/liabilities 1,279 1,235
PEAB ANNUAL REPORT 2012
65
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Note 20 Receivables from Group companies
Parent company
MSEK 2012 2011
Acquisition values carried forward 1,447 1,015
Added receivables 1,523 814
Settled receivables –1,384 –382
Book value carried forward 1,586 1,447
Note 21 Interest-bearing receivables
Interest-bearing long-term receivables
Group Parent company
MSEK 2012 2011 2012 2011
Receivables from joint ventures
Other interest-bearing
969 895 – –
receivables 188 419 105 –
Total 1,157 1,314 105 –
Interest-bearing current receivables
MSEK 2012 2011 2012 2011
Receivables from joint ventures
Other interest-bearing
293 31 – –
receivables 274 206 – –
Total 567 237 – –
Note 22 Other long-term securities holdings
Group
MSEK
Financial assets recognized at fair value through
the income statement
Fair value option
2012 2011
Shares and participation 1) Available-for-sale financial assets
15 530
Shares and participation 295 191
Loan receivables 132 164
Total 442 885
1) Of the Group holdings in 2011 SEK 491 million refer to shares i in Brinova
Fastigheter AB.
Of which, other long-term securities holdings valued at fair value
Parent Company
MSEK
Acquisition values
2012 2011
Opening balance 1 January 290 290
Acquired assets 1 –
Divested assets –272 –
Closing balance per 31 December 19 290
Accumulated change in value through the income statement
Opening balance 1 January
Unrealized change in value through
211 296
the income statement for the year 31 –85
Divested assets –246 –
Closing balance per 31 December –4 211
Book value 31 December 15 501
For additional information about fair value per category and class,
see Note 36.
66 PEAB ANNUAL REPORT 2012
Note 23 Other receivables
Other long-term receivables
Group Parent company
MSEK 2012 2011 2012 2011
Receivables from joint ventures 24 177 – –
Other long-term receivables 84 182 1 1
Total 108 359 1 1
Other current receivables
Group Parent company
MSEK 2012 2011 2012 2011
Receivables from joint ventures 2 103 – –
Other current receivables 206 362 2 –
Total 208 465 2 –
Note 24 Project and development property
Group
MSEK 2012 2011
Directly owned project and development property 5,479 4,485
Participation in Finnish housing companies
Repurchased participation in tenant-owner's
333 246
associations and similar 425 437
Other 2 12
Total 6,239 5,180
Project and development properties were written down for a total of
SEK 22 million (14).
Recovery
Of book value of project and development property of SEK 6,239
million (5,180) approximately SEK 4,800 million (approximately 3,800)
is expected to be recovered through the start of production or sales
more than 12 months after the balance sheet day. The remaining part
is expected to be recovered within 12 months of the balance sheet
day.
Note 25 Inventories
Group
MSEK 2012 2011
Raw materials and consumables 88 74
Products in progress 76 56
Finished products and goods for resale 301 286
Total 465 416
Note 26 Work-in-progress
At the end of the year there was work-in-progress for a total of SEK
1,106 million (1,689) in the Group refering to costs in housing projects
reported according to IAS 18, Revenue.
Note 27 Accounts receivable
Accounts receivables were written down for factual and feared bad
debts for a total of SEK 35 million (74). Factual bad debts amounted
to SEK 37 million (5) in the Group, of which SEK 30 million were written
down in 2011. The loss was a result of some of the company’s customers
going bankrupt. The parent company had no bad debts.

Note 28 Construction contracts
Recognized income not yet invoiced
Group
MSEK 2012 2011
Recognized income on incomplete contracts 37,455 30,682
Invoicing on incomplete contracts –32,215 –26,102
Total 5,240 4,580
Invoiced income not yet recognized
Group
MSEK
Invoiced sales on incomplete contracting
2012 2011
projects
Recognized income on incomplete
45,433 42,079
contracting projects –40,187 –37,810
Total 5,246 4,269
Recognized income from contracts in progress is reported with the
application of percentage of completion method. The degree of
recognition is calculated on the basis of the project costs incurred at
the end of the period in relation to the project income corresponding
to project costs for the whole project.
Contract assignments are reported in the balance sheet on the
basis of gross project for project, either as Recognized but non-invoiced
income in current assets or as Invoiced but unrecognized
income in current liabilities. Projects that have higher recognized
incomes than the amount invoiced are reported as assets, while
projects that have been invoiced for more than recognized income
are reported as liabilities.
Note 29 Prepaid expenses and accrued
income
Parent Company
MSEK 2012 2011
Accrued interest income 1 2
Prepaid overhead expenses 4 5
Total 5 7
Note 30 Equity
Shares and share capital
Group
A shares B shares
Number of
issued fully
paid shares
Share capital,
SEK
Number of issued
shares 1 January
2012
Total number of
issued shares 31
34,319,957 261,729,773 296,049,730 1,583,866,056
December 2012 34,319,957 261,729,773 296,049,730 1,583,866,056
An A share entitles the holder to 10 votes and a B share to 1 vote. The
par value of all shares is SEK 5.35.
For those shares in the company’s own holding (see below) all rights
have been revoked until these shares are reissued.
Repurchased own shares that have reduced the equity item Profit
brought forward including profit for the year
Number of
shares 1)
Amount that
affected equity,
MSEK 2)
2012 2011 2012 2011
Opening repurchased
own shares
Purchases during the
1,086,984 9,308,220 929 1,213
year
Divestments during the
– 360,000 – 16
year
Closing repurchased
– –8,581,236 – –300
own shares 1,086,984 1,086,984 929 929
1) A withdrawal of 5,500,000 shares was made in 2007.
2) Amount affecting equity refers to the accumulated net sum of acquired and divested
own shares.
Other contributed capital
Refers to equity contributed by the owners. Includes premiums paid in
conjunction with new issues.
Reserves
Translation reserve
The translation reserve comprises all exchange rate differences generated
by translating the financial reports from foreign companies
prepared in another currency than the one used in Group financial
statements. The parent company and the Group present their reports
in Swedish crowns (SEK). The translation reserve also consists of
exchange rate differences from extended investment in foreign
business and re-borrowing from foreign operations.
Fair value reserve
The fair value reserve incudes the accumulated net change of the fair
value of financial assets available-for-sale until the asset has been
eliminated from the balance sheet.
Hedging reserve
The hedging reserve comprises the effective part of the accumulated
net changes in fair value in a hedge instrument attributable to a hedged
risk in a cash flow which has yet not affected the income statement.
Profit brought forward including profit for the year
Profit brought forward including profit for the year consists of profit in
the parent company and its subsidiaries, associated companies and
joint ventures. Previous provisions for reserve funds, excluding transferred
premium funds, and previous investment funds are included in
this equity item.
Repurchased shares
Repurchased shares comprise the purchase cost minus the sales
income for own shares held by the parent company. As of 31 December
2012, the Group’s holding of own B shares was 1,086,984 (1,086,984).
PEAB ANNUAL REPORT 2012
67
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Dividend
After the balance sheet day the Board of Directors and the CEO
proposed the following dividend; A cash dividend of SEK 1.60 (2.10)
per share totalling SEK 473,679,568 (621,704,433), calculated on the
number of registered shares. Total dividends are calculated on outstanding
shares at the time of distribution.
The dividend will be proposed for adoption by the AGM on 14 May
2013.
The parent company
Restricted reserves
Restricted reserves may not be reduced by the distribution of dividends.
Reserve fund
The purpose of the reserve fund is to retain a part of the net profit
which is not allocated to cover balanced losses. The reserve also
includes amounts transferred to the share premium reserve before
1 January 2006.
Unrestricted equity
Together with profit for the year the following funds make up unrestricted
equity, i.e. the amount available for dividends to the shareholders.
Premium reserve
When shares are issued at a premium, i.e. when more must be paid
for the shares than their nominal price, an amount equivalent to the
amount received in excess of the share’s nominal value is transferred
to the share premium reserve. The amount transferred to the share
premium reserve starting 1 January 2006 is included in unrestricted
capital.
Special reserves
Refers to allocations to reserves upon the reduction of share capital
for use as resolved by the AGM.
Reserve for fair value
The company uses the Annual Accounts Act rules for the valuation of
financial instruments at fair value according to chapter 4 paragraph
14a-e. A change in value is recognized in the reserve for fair value
when it refers to a hedging instrument and the principles applied for
hedge accounting allow for a portion or the entire change in value to
be recognized in equity. A change in value caused by an exchange
rate change on a monetary item which is part of the company’s net
investment in a foreign unit is recognized in equity.
Profit brought forward
Consists of the previous year’s profit brought forward after the distribution
of profits.
68 PEAB ANNUAL REPORT 2012
Note 31 Interest-bearing liabilities
Long-term liabilities
Group
MSEK 2012 2011
Bank loans 4,239 5,363
Convertible promissory notes – 592
Bonds 1,993 998
Financial leasing liabilities 403 446
Liabilities to joint ventures 9 –
Other long-term liabilities 128 –
Total 6,772 7,399
Current liabilities
Bank loans including overdraft facilities 1,143 722
Commercial paper 343 818
Current part of leasing liabilities 226 195
Liabilities to joint ventures 100 –
Other current liabilities 42 –
Total 1,854 1,735
Convertible promissory notes 2007/2012 1)
Group
MSEK 2012 2011
Nominal value after issue of 8,800,000 convertible
promissory notes – 598
Original amount classified as equity – –35
Capitalized interest – 28
Recorded liability on 31 December – 591
1) The convertible promissory notes ran from 1 December 2007, with settlement day in
January 2008, to 30 November 2012 with a coupon interest rate of 5.44 percent.
Convertible promissory notes Peab Industri 2007/2012 2)
Group
MSEK 2012 2011
Remaining part of the liability, 2007/2012 – 1
Recorded liability on 31 December – 1
2) Remaining part of Peab Industri’s personnel convertibles which had not been acquired
per 31 December 2011.
Financial leasing liabilities
Financial leasing liabilities fall due for payment as follows;
Group Minimum
leasing
charge Interest
Capital
Minimum
leasing
amount charge Interest
Capital
amount
MSEK 2012 2012 2012 2011 2011 2011
Within one year
Between one and
234 8 226 205 10 195
five years
Later than five
374 13 361 406 19 387
years 44 2 42 62 3 59
Total 652 23 629 673 32 641
Variable leasing fees were SEK 9 million (–4).
For futher information concerning Group financial leasing, see note 17.

Note 32 Pensions
Defined benefit pension plans
Group
MSEK 2012 2011
Present value of unfunded obligations 7 15
Present value of fully or partially funded obligations 16 48
Total net present of obligations 23 63
Fair value of plan assets –8 –30
Net present value of net obligations 15 33
Unrecognized actuarial gains (+) and losses (–) –8 –20
Net reporting of defined benefit plans recognized
as provisions for pensions 7 13
Review of defined benefit plans
Defined benefit plans consist of the Swedish ITP plan for white-collar
workers which is secured through insurance with Alecta, pension plans
for a small number of executive personnel in Norway and the AFP
pension in Norway. As Alecta cannot submit the information required
to account for the ITP plan as a defined benefit plan, it is reported as
a defined contribution plan (see below).
Changes in the current value of obligations for defined benefit
plans
MSEK
Net obligations for defined benefit plans as
2012 2011
of 1 January 63 39
Paid out remunerations
Cost for service during the current period
–8 –3
and interest expenses 3 5
Actuarial gains and losses 3 7
Effect of business acquisitions – 16
Settlements and curtailments –39 –
Translation differences
Obligations for defined benefit plans on 31
1 –1
December 23 63
Changes in the recognized fair value of plan assets
MSEK 2012 2011
Fair value for plan assets as of 1 January 30 21
Contributions from employer 1 2
Expected return 0 1
Difference between expected and actual return 0 –1
Settlements and curtailments –23 –
Effect of business acquisitions – 7
Fair value of plan assets on 31 December 8 30
Expenses charged to income statement
MSEK 2012 2011
Cost for service during the current period 3 6
Interest expenses on obligations 0 1
Expected return on plan assets 0 –1
Gains and losses on settlements and curtailments –2 –
Recognized actuarial gains (–) and losses (+) 2 2
Total net expense in the income statement 3 8
Expenses are recognized in the following lines in the
income statement
MSEK 2012 2011
Production costs 3 3
Sales and administrative expenses 0 4
Financial expenses 0 1
Total 3 8
Actual return on plan assets 0 0
Assumptions for defined benefit plan obligations
The most important actuarial assumptions on balance sheet date 2012 2011
Discount rate 2.20% 2.68%
Expected return on plan assets 3.60% 4.08%
Future salary increases 3.25% 2.60%
Future increase in pensions 2.25% 3.00%
Historical information
MSEK 2012 2011 2010 2009 2008
Present value of defined benefit plan
obligations 23 63 39 47 37
Fair value of plan assets –8 –30 –21 –20 –15
Plan deficit 15 33 18 27 22
Retirement pension and family pension obligations for white-collar workers
in Sweden are secured through insurance with Alecta. According to
a statement from the Swedish Financial Reporting Board, UFR 3, this is
a defined benefit plan that comprises several employers. The company
did not have the necessary information required to recognize this plan
as a defined benefit plan in the 2012 financial year. Therefore the pension
plan which is secured through insurance with Alecta is reported as
a defined contribution plan. Annual charges for pension insurance from
Alecta amounted to SEK 149 million (133). Alecta’s surplus may be
distributed among the policyholders and/or the insured. At the end of
2012, Alecta’s surplus in the form of collective consolidation level
amounted to 129 percent (113). The collective consolidation level is
made up of the market value of Alecta’s assets as a percentage of the
insurance undertakings calculated in accordance with Alecta’s insurance
adjustment assumptions, which do not accord with IAS 19.
Defined contribution plans
The Group has defined contribution plans which are entirely paid for
by the company. Regular payments are made to these plans according
to the rules of each plan.
Group Parent company
MSEK
Cost of defined contribution plans
2012 2011 2012 2011
1) 504 448 12 17
1) This includes SEK 149 million (133) referring to an ITP plan financed in Alecta, see
above.
Note 33 Provisions
Provisions which are long-term liabilities
Group
MSEK 2012 2011
Guarantee risk reserve 282 231
Re-establishment costs 72 63
Disputes 2 6
Other 38 10
Total 394 310
Provisions which are current liabilities
Group
MSEK 2012 2011
Guarantee risk reserve 85 63
Close-down costs 18 13
Disputes 65 44
Other 5 13
Total 173 133
PEAB ANNUAL REPORT 2012
69
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Provisions which are long-term liabilities
Group
2012
MSEK
Guarantee
risk reserve
Re-establishment
costs Disputes Other
Opening book value
Provisions set aside during
231 63 6 10
the year
Amounts requisitioned
138 15 1 38
during the year
Reversed unutilized
–85 –6 –5 –10
provisions during the year –2 0
Closing book value 282 72 2 38
Provisions which are current liabilities
Group
2012
MSEK
Guarantee
risk reserve
Re-establishment
costs Disputes Other
Opening book value
Provisions set aside during
63 13 44 13
the year
Amounts requisitioned
57 16 65 1
during the year
Reversed unutilized
–14 –11 –44 –9
provisions during the year –21
Closing book value 85 18 65 5
Guarantee risk reserve
Refers to the estimated cost of remedying faults and deficiencies in
terminated projects that arise while the project is under warranty.
Resources are consumed during the guarantee period of the project
which is generally two to five years. As the effect of the time point for
payment is not significant expected future disbursements are not
valued at their current value.
Close-down costs
Refers to costs in business area Construction in Norway and Finland.
Re-establishment costs
Refers to restoration costs for gravel pits and rock quarries after termination
of operations. The provision grows in relation to the amount
quarried and is reversed after restoration is complete. The reserved
sum is expected to be used successively after operations are terminated.
The estimated restoration time is 1 to 15 years.
Disputes
Refers to disputes in business area Industry and Construction.
Others
Refers to provisions in business area Construction, Industry
and Property Development.
70 PEAB ANNUAL REPORT 2012
Note 34 Other liabilities
Group
MSEK
Other long-term liabilities
2012 2011
Additional purchase price 3 21
Interest rate swaps 106 57
Other long-term liabilities 33 32
Total 142 110
Other current liabilities
Liabilities to joint ventures – 17
Additional purchase price 50 23
Tax at source, social security costs 178 179
Value added tax 412 524
On account work-in-progress 379 736
Other current liabilities 213 140
Total 1,232 1,619
Parent company
MSEK
Other current liabilities
2012 2011
Tax at source 1 1
Other current liabilities 2 5
Total 3 6
Note 35 Accrued expenses and deferred
income
Parent company
MSEK 2012 2011
Accrued payroll expenses 9 9
Accrued social security expenses 6 5
Accrued interest expenses – 3
Accrued overhead expenses 1 1
Total 16 18

Note 36 Valuation of financial assets and liabilities at fair value
Under IAS 39, Financial instruments, financial instruments are valued either at accrued acquisition value or fair value depending on which category
they belong to. Classification largely depends on the purpose of the holding. Items which have been the object of valuation at fair value are listed
shareholdings, different types of derivatives and unlisted funds.
The fair value of listed shareholdings and share derivatives are calculated according to the closing price at the end of the accounting period.
Market values from the managing financial institution were used to calculate the fair value of unlisted shareholdings.
When calculating the fair value of interest-bearing receivables and liabilities and interest rate swaps, future cash flows were discounted to the listed
market interest for the remaining terms of maturity. Spot rates on the balance sheet date were used to calculate the value of currency swaps.
The booked value of non-interest-bearing asset and liability items such as accounts receivable and accounts payable with a remaining maturity of
less than six months is believed to reflect their fair value. The adjacent tables show the reported values compared with the estimated fair value per
type of financial asset and liability.
Financial
Financial
assets valued
liabilities
at fair value
Financial
valued at fair
through Derivatives assets Accounts value through Other
Total
income used in hedge available- and loan income financial recognized
Group
statement accounting for-sale receivables statement liabilities value Total fair value
MSEK
Financial assets
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
Other securities held as fixed assets 15 1) 530 1) 295 191 132 164 442 885 442 885
Interest-bearing long-term receivables 1,157 1,314 1,157 1,314 1,165 1,327
Other long-term receivables 1 107 357 107 358 107 358
Accounts receivable 7,095 6,535 7,095 6,535 7,095 6,535
Interest-bearing current receivables 567 237 567 237 569 234
Prepaid expenses and accrued income 1 2) 1 2) 2 7 17 8 20 8 20
Other current receivables 5 82 343 82 348 82 348
Current holdings 10 9 10 9 10 9
Liquid funds 429 961 429 961 429 961
Total financial assets 16 531 – 8 295 191 9,586 9,937 – – – – 9,897 10,667 9,907 10,677
Financial liabilities
Interest-bearing long-term liabilities 6,772 7,399 6,772 7,399 6,764 7,407
Other long-term liabilities 108 57 34 53 142 110 142 110
Provisions for pensions 7 13 7 13 7 13
Interest-bearing current liabilities 1,854 1,735 1,854 1,735 1,854 1,735
Accounts payable 4,534 4,508 4,534 4,508 4,534 4,508
Accrued expenses and deferred income 8 2 (2 20 20 20 30 20 30
Other current liabilities 2 15 244 115 246 130 246 130
Total financial liabilities – – 110 80 – – – – – 2 13,465 13,843 13,575 13,925 13,567 13,933
Unrealized profit/loss
1) Refers to shares and participations where “fair value option” was applied
2) Refers to derivatives classified as “holdings for trading purposes”
10 10 8 –8
The effect of valuing financial instruments at fair value was included in the Group’s profit for a total of SEK 39 million (–79),
of which SEK 27 million (–81) referred to market valuation of shareholdings in Brinova. Market valuation of interest rates and
currency swaps was included for a total of 8 (2).
PEAB ANNUAL REPORT 2012
71
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Parent company
Financial assets
valued at fair value
through income
statement
Financial assets
available-for-sale
Accounts and loan
receivables
Other financial
liabilities
Total recognized
value Total fair value
MSEK 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
Financial assets
Long-term receivables Group companies 1,586 1,447 1,586 1,447 1,586 1,452
Other securities held as fixed assets 15 1) 501 1) 256 191 6 17 277 709 277 709
Interest-bearing long-term receivables 105 105 106
Other long-term receivables 1 1 1 1 1 1
Current receivables Group companies 46 37 46 37 46 37
Prepaid expenses and accrued income 1 1 1
Liquid funds 3 2 3 2 3 2
Total financial assets
Financial liabilities
15 501 256 191 1,748 1,504 – – 2,019 2,196 2,020 2,201
Long-term liabilities Group companies 7,122 4,794 7,122 4,794 7,122 4,794
Convertible promissory notes 590 590 595
Accounts payable 55 11 55 11 55 11
Current liabilities Group companies 2 2 2 2 2 2
Accrued expenses and deferred income 3 3 3
Total financial liabilities – – – – – – 7,179 5,400 7,179 5,400 7,179 5,405
Unrealized profit/loss
1) Refers to shares and participations where “fair value option” was applied
1 5 –5
The effect of valuing financial instruments at fair value was included in the parent company´s profit for a total of
SEK 31 million (–85), of which SEK 27 million (–81) referred to the market valuation of shareholdings in Brinova.
Fair value
Measurement of fair value is based on a three level hierarchy.
Level 1: prices that reflect quoted prices on an active market for identical assets
Level 2: based on direct or indirect observable inputs not included in level 1
Level 3: based on inputs unobservable to the market
The table below shows the allocated level of financial assets and financial liabilities recognized at fair value
in the Group balance sheet.
Group Level 1 Level 2 Level 3 Total
MSEK
Financial assets
2012 2011 2012 2011 2012 2011 2012 2011
Other securities held as fixed assets 271 692 39 29 310 721
Other long-term receivables 1 1
Prepaid expenses and accrued income 1 3 1 3
Other current receivables 5 5
Total financial assets
Financial liabilities
271 692 1 9 39 29 311 730
Other long-term liabilities 108 57 108 57
Accrued expenses and deferred income 10 10
Other current liabilities 2 15 2 15
Total financial liabilities – – 110 82 – – 110 82
The table below is a reconciliation between the opening and closing balance for assets included in level 3.
Group Other securities held as
fixed assets 1)
MSEK 2012 2011
Opening balance 29 13
Investments during the year 8 18
Repayment of investments 0 –4
Reported in net financial items in profit
for the year
– 2
Reported in other comprehensive income 2 –
Closing balance 39 29
1) Refers in its entirety to an investment in a unlisted fund. The holding is valued at fair value
through other comprehensive income.
72 PEAB ANNUAL REPORT 2012

Note 37 Financial risks and financial policy
Finance and treasury
The Group is exposed to various types of financial risks through its
operations. The term financial risk refers to fluctuations in the company’s
profits and cash flow resulting from changes in exchange rates,
interest rates, refinancing and credit risks. Group finance and treasury
is governed by the financial policy established by Peab’s Board of
Directors. The policy is a framework of guidelines and regulations in
the form of a risk mandate and limitations in finance and treasury. The
Board has appointed a finance and treasury committee which is
chaired by the Chairman of the Board. It is authorised to take decisions
that follow the financial policy in between meetings of the
Board. The finance and treasury committee must report any such
decisions at the next meeting of the Board. The Group staff Finance
and treasury and the Group’s internal bank Peab Finans AB manage
coordination of Group finance and treasury. The overall responsibility
of the finance and treasury function is to provide cost-effective funding
and to minimise the negative effects on Group profit due to the
price of financial risks.
The liquidity risk refers to the risk of Peab having difficulties in meeting
its payment obligations as a result of a lack of liquidity or problems
in converting or recieving new loans. The Group has a rolling
one month liquidity plan for all the units in the Group. Plans are updated
each week. Group forecasts also comprise liquidity planning in the
medium term. Liquidity planning is used to handle the liquidity risk
and the cost of Group financing. The objective is for the Group to be
able to meet its financial obligations in favourable and unfavourable
market conditions without running into significant unforeseen costs.
Liquidity risks are managed centrally for the entire Group by the
central Finance and treasury function and at year-end liquid funds
were available as shown below.
The financial policy dictates that Group net debt should mainly be
covered by loan commitments that mature between 1 and 7 years. At
Available liquid funds
Group
MSEK 2012-12-31 2011-12-31
Liquid funds and bank holdings 439 1,1221) Unutilized overdraft facilities 1,369 1,189
Other unused credit lines 3,853 2,633
Total 5,661 4,944
1) Of which SEK 200 million are reported as interest-bearing current receivables.
Age analysis of financial liabilities, undiscounted cash flow including interest
Group 2012
MSEK Currency
Average interest
rate on balance
sheet date, %
the end of the year, the average loan period for utilised credits was 31
months (30), for unutilised credits 21 months (23), and for all granted
credits 25 months (28). Peab’s base financing was renegotiated and
extended in 2007. The bilateral loan agreements from 2007 amounted
at the end of the year to SEK 2,950 million (2,950) split between 5
banks (5). The loan agreements, which are not subject to amortization,
run until September 2014. There are also additional credit facilities
of SEK 1,200 million (200). The base financing in Peab Industri,
which was acquired in December 2008 after the company was distributed
to Peab’s shareholders in 2007, is made up of bilateral loan
agreements totaling SEK 2,300 million divided among four banks.
The loan agreements, which are not subject to amortization, run until
June 2014. The bilateral loan agreements all have the same basic
documentation and contain financial covenants in the form of interest
coverage ratios and equity/assets ratios that the Group must meet,
which is standard for this kind of loan. Peab had exceeded these key
ratios by a broad margin at the end of the year.
Peab set up a lending program for commercial papers in 2004.
Under the program, Peab can issue commercial papers for a maximum
of SEK 3,5 billion. The borrower is Peab Finans AB and the
guarantor is Peab AB. At the end of the year, Peab had outstanding
commercial papers worth SEK 343 million (818).
Peab issued convertible bonds to all employees in December 2007.
Settlement was in January 2008. A total of 8.8 million convertibles
were issued for a total nominal sum of SEK 598 million. The convertibles
of 2007/2012 matured on 30 november 2012. None were converted
to shares and the loans have been paid in full.
In 2011 Peab issued unsecured bonds for a nominal value of SEK
1,000 million that run for three, four and five years. In February 2012
Peab received FSA approval and registration for the issuance of
Medium Term Notes (MTN) with a loan limit of SEK 3 billion. During
2012 bonds for SEK 1,000 million have been issued under the MTN
program. At the end of the year Peab had outstanding bonds totaling
SEK 2,000 million (1,000).
Total credit commitments, excluding unutilized leasing lines, excluding
that part of the certificate program which has not been utilized
and excluding the unutilized part of the MTN program amounted to
SEK 13,855 million (12,969) per 31 December 2012. SEK 8,633 million
(9,147) was utilized of the total credit commitments.
Nominal value,
original
currency
Amount
SEK
Maturing
in 2013
Maturing
in 2014
Maturing
in 2015
Maturing
in 2016
Maturing
in 2017
Maturing
2018–
Bank loans SEK 2.3 5,065 5,065 1,077 3,081 170 94 124 519
Bank loans NOK 4.0 359 419 231 23 142 1 1 21
Bank loans EUR 1.4 55 476 44 34 8 4 4 382
Commercial paper SEK 2.8 346 346 346 – – – – –
Bonds SEK 3.5 2,229 2,229 70 570 555 1,032 2 –
Financial leasing liabilities SEK 2.8 492 492 184 157 71 20 43 17
Financial leasing liabilities NOK 4.0 144 168 39 32 25 21 19 32
Total interest-bearing financial liabilities 9,195 1,991 3,897 971 1,172 193 971
Accounts payable SEK – 3,985 3,985 3,985
Accounts payable NOK – 357 416 416
Accounts payable EUR – 15 133 133
Other liabilities SEK – 298 298 264 17 4 0 4 9
Interest rate swaps – 116 116 31 25 20 17 10 13
Total non-interest-bearing financial liabilities 4,948 4,829 42 24 17 14 22
Total financial liabilities 14,143 6,820 3,939 995 1,189 207 993
PEAB ANNUAL REPORT 2012
73
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Group 2011
Average interest
rate as per blance
MSEK Currency sheet day, %
Interest rate risk
The interest rate risk is the risk that Peab’s cash flow or the value of
financial instruments may vary with changes in market interest rates.
Interest rate risk can result in changes in fair values and cash flows.
A crucial factor affecting interest rate risk is the fixed interest period.
On 31 December 2012, interest-bearing net debt amounted to SEK
6,470 million (6,626). Total interest-bearing liabilities amounted to SEK
8,633 million (9,147), of which SEK 1,854 million (1,735) were shortterm.
The financial policy dictates that the average fixed interest period
Nominal value,
original
currency
Amount
SEK
Maturing
in 2012
Maturing
in 2013
Maturing
in 2014
Maturing
in 2015
Maturing
in 2016
Maturing
2017–
Bank loans SEK 3.3 4,664 4,664 1,096 269 2,430 331 190 348
Bank loans NOK 3.7 1,019 1,173 467 212 480 14 – –
Bank loans EUR 2.0 86 769 113 22 236 11 7 380
Commercial paper SEK 3.1 825 825 825 – – – – –
Bonds SEK 4.3 1,193 1,193 43 43 243 134 730 –
Convertible promissory notes SEK 5.4 622 622 622 – – – – –
Financial leasing liabilities SEK 3.3 569 569 196 163 130 24 21 35
Financial leasing liabilities NOK 3.8 109 126 20 25 25 9 21 26
Total interest-bearing financial liabilities 9,941 3,382 734 3,544 523 969 789
Accounts payable SEK – 3,937 3,937 3,937 – – – – –
Accounts payable NOK – 354 407 407 – – – – –
Accounts payable EUR – 18 164 164 – – – – –
Other liabilities SEK – 183 183 145 2 18 2 1 15
Interest rate swaps – 60 60 16 15 10 8 6 5
Currency swaps – 10 10 10 – – – – –
Total non-interest-bearing financial liabilities 4,761 4,679 17 28 10 7 20
Total financial liabilities 14,702 8,061 751 3,572 533 976 809
Rate derivates
MSEK Currency Effective rate %
As the table below shows, the fixed interest rate period for SEK 5,206
million (6,423) of the Group’s total interest-bearing liabilities, including
derivatives, is less than 1 year. Interest-bearing asset items totaling
SEK 1,322 million (1,494) have short fixed interest rate periods, with
the result that the fixed interest rate period for SEK 3,884 million
(4,929) of Group net debt, including derivatives, is less than 1 year,
making these liabilities directly susceptible to changes in market interest
rates. Since the majority of the financial liabilities have a short
maturity most of the interest rate risk is considered a cash flow risk.
For further information see the sensitivity analysis on page 28 in the
Board of Directors’ report.
Loan period for utilized credit per 31 December 2012
Fixed interest period
Amount,
MSEK
Average effective
interest rate,
percent
Share,
percent
2013 8,506 2.6 99
2014- 127 4.2 1
Total 8,633 100
Fixed interest rate period on utilized credits,
including derivates per 31 December 2012
Fixed interest rate period
Amount,
MSEK
Average effective
interest rate,
percent
Nominal value,
original currency
Share,
percent
2013 5,206 2.9 60
2014- 3,427 2.8 40
Total 8,633 100
on total borrowing may not exceed 24 months. Peab has chosen relatively
short fixed interest periods for outstanding credits. Per 31
December 2012 there were interest rate swaps in SEK 3,300 million
(2,550) with maturity between 3 and 10 years at an effective interest
rate of 2.5 percent (2.6) according to the table below. Peab pays a fixed
annual interest rate and receives floating rates (Stibor 3 months) in the
interest rate swap. The swap agreement is recognized at fair value in
book closing. Per 2012-12-31 this fair value was SEK –108 million (–57).
Amount
SEK
Maturing in
2013
Maturing in
2014
Maturing in
2015
Maturing in Maturing in
2016 2017
Maturing
2018–
Interest rate swaps 2012-12-31 SEK 2.5 3,300 3,300 450 – 500 600 650 1,100
Interest rate swaps 2011-12-31 SEK 2.6 2,550 2,550 450 – 500 600 – 1,000
74 PEAB ANNUAL REPORT 2012
Currency risks
The risk that fair values and cash flows from financial instruments may
fluctuate with changes in the value of foreign currencies is referred to
as a currency risk.
Financial exposure
Group borrowing is done in local currencies to reduce currency risks
in operations. Assets and liabilities in foreign currency are translated
at the rate on the balance sheet date. Borrowing in the interest-bearing
liabilities per 31 December 2012, including leasing but excluding
currency derivatives, was allocated as follows:
Local currency
in millions MSEK
SEK 7,642 7,642
NOK 465 543
EUR 52 448
Total 8,633
Internal loans are used to handle temporary liquidity needs in Peab’s
foreign operations. Currency swaps are used to eliminate exchange
risks. Currency swaps usually run three months. Currency swaps are
reported at fair value in book closing and value changes are reported
as unrealized exchange rate differences in the income statement and
as current receivables and liabilities in the balance sheet. At the end
of the year, there were EUR 56 million (29) and NOK 293 million (148)
in outstanding currency swaps relating to financial exposure. Of the
currency swaps referring to financial exposure EUR 31 million (22) are
a hedge for the shareholding in Lemminkäinen Oyj. Exchange rate
differences in net financials items from financial exposure were SEK
–2 million (–5) in 2011. Exchange rate differences in operating profit
were SEK 0 million (0).

Exposure of net assets in foreign currency
The translation exposure arising from investments in foreign net assets
is primarily hedged through loans in foreign currency or forward
exchange contracts. At the end of 2012, hedging through forward
exchange contracts and loans in NOK for foreign net assets in Norway
amounted to NOK 200 million (233). Hedges of foreign net assets in
Finland through forward exchange contracts and loans were in euros
for a total of EUR 21 million (16).
Foreign net assets
Of which
Of which
Local currency in millions 2012-12-31 hedged 2011-12-31 hedged
NOK 1,119 200 874 233
EUR 90 21 87 16
PLN 6 – 5 –
LVL 1 – 1 –
A 10 percent stronger euro rate on 31 December 2012 would entail a
positive translation effect on equity of SEK 59 million (63). A corresponding
strengthening of the Norwegian crown would generate a
positive translation effect on equity of SEK 107 million (74). The translation
effects are calculated on that part of foreign net assets which
are not hedged. The effects on profit for the year of corresponding
exchange rate changes are limited.
Annual exchange rate differences in equity (net assets in foreign
subsidiaries) amounted to SEK –14 million (0).
Commercial exposure
Although international purchases and sales of goods and services in
foreign currency are currently small, they are expected to increase as
the Group expands and the competition grows in terms of purchasing
goods and services. Contracted or forecast currency flows can be
hedged for 6 months from the date of the contract. At the end of the
year, there were exchange rate hedges related to forecasted currency
flows of NOK 0 million (260), EUR 5 million (26) and 0 MUSD (1).
Since anticipated currency flows are hedged there are no transaction
or translation effects on equity (other than in the hedged reserve)
or in profit for the year if currency rates change.
Market price risk
Peab is exposed to market price risk through shareholdings in the
listed companies Victoria Park and Lemminkäinen. On closing date
the total reported value of those holdings was 271 million (201). The
holdings in Brinova and Catena have been divested during 2012.
Credit risk
Credit risk refers to the risk of a counterparty failing to meet their
obligations.
Credit risks in financial instrument
Credit risks in financial instruments are very limited since Peab only
deals with counterparties with high credit ratings. Counterparty risks
are primarily associated with receivables on banks and other counterparties
involved in the purchase of derivatives. The financial policy
contains special counterparty regulations which specify the maximum
credit exposure for various counterparties. The framework agreement
of the International Swaps and Derivatives Association (ISDA) is used
with all counterparties in derivative transactions. Peab did not suffer
any financial instrument losses in 2012.
Total counterparty exposure related to derivative trading calculated
as a net receivable per counterparty amounted to SEK 0 million (0) at
the end of 2012. The estimated gross exposure to counterparty risks
related to liquid funds and current investments amounted to SEK 439
million (1,170).
Credit risk in accounts receivable
The risk that Group customers cannot meet their obligations, i.e. payment
is not received from customers, is one customer credit risk.
Bad debts are very rare in construction since invoicing is continuous
during production in most projects. The Group’s customers undergo
a credit rating control providing information on customers’ financial
positions from various credit rating companies before a project is
undertaken. The Group has established a credit policy for handling
customer credit. For instance, it specifies where decisions regarding
credit limits of various magnitudes are taken and how uncertain
receivables should be handled. Bank guarantees or other collateral
are required for customers with low credit ratings or insufficient credit
history. The maximum exposure to credit risk is the reported value
presented in the Group balance sheet. Total bad debts in construction
operations amounted to SEK 37 million (5). Peab has receivables to the
Northland Group for a total of SEK 160 million. Northland Resources
is under reconstruction. Write-downs of receivables are not expected
to be necessary. See also note 45 Events after the balance sheet date.
The credit quality in accounts receivable that are not yet due and not
written down is otherwise considered good.
Age analysis, not written down accounts receivable due
Book value of recivables
not written-down
MSEK 2012 2011
Accounts receivable, not fallen due 5,426 5,201
Accounts receivable, fallen due 0 – 30 days 527 692
Accounts receivable, fallen due 31 – 90 days 313 218
Accounts receivable, fallen due 91 – 180 days 299 74
Accounts receivable, fallen due 181 – 360 days 260 97
Accounts receivable, fallen due > 360 days 324 253
Total 7,149 6,535
Accounts receivable written down
MSEK 2012 2011
Opening balance 79 26
Reversed write-downs –61 –21
Write-downs for the year 35 74
Translation difference 1 0
Balance carried forward 54 79
There are no mature receivables of significant amounts for other
financial receivables.
Capital management
Peab aims to have a good capital structure and financial stability in
order to provide a stable basis for continuing business activities,
thereby enabling the company to keep existing owners and attract
new ones. A good capital structure is also intended to promote the
development of good relations with the Group’s creditors in a manner
which benefits all parties.
Capital is defined as equity and refers to the equity attributable to
the owners of shares in the parent company.
Equity
MSEK 2012 2011
Share capital 1,584 1,584
Other contributed capital 2,576 2,576
Reserves –152 -82
Retained earnings including profit for the year 3,976 3,869
Equity related to shareholders in parent company 7,984 7,947
One of Peab’s targets is an equity/assets ratio (equity divided by the
balance sheet total) in excess of 25 percent. The Board of Directors
believes that this level is well suited to Peab’s construction and civil
engineering operations in Sweden, Norway and Finland. The target is
a part of the Group’s strategic planning. If the equity/assets ratio is
expected to exceed this level on a permanent basis, the capital
should be transferred to the shareholders in the appropriate form.
The equity/assets ratio at the end of 2012 was 24.9 per cent (25.4).
It is the ambition of the Board of Directors to preserve a balance
between a high rate of return on equity, which can be done through
increased lending, and the security and benefits associated with a
higher equity ratio. Therefore, one of Peab’s financial targets is a
return on equity (profit for the period attributable to holders of participations
in the parent company divided by the average equity attributable
to holdings of participations in the parent company) in excess of
20 percent. The return on equity was 9.2 percent (12.1) at the end of
2012, which is a return far from Peab’s goal. The Board believes the
target figure is a long-term relevant level for Peab. By way of comparison,
the Group’s average interest expenses on interest-bearing
borrowing was 2.9 percent (3.5).
PEAB ANNUAL REPORT 2012
75
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Peab´s goal concerning dividends is an annual distribution of 50 percent
of profits after tax to shareholders. The level of dividends should
be reasonable in relationships to developments in Peab´s profit and
consolidation requirements. An ordinary dividend of SEK 1.60 per
share (2.10) is proposed for 2012. Calculated as a share of the
Group’s reported profit after tax, the proposed dividend amounts to
65 percent (66). Exclusive of the 1,086,984 B shares owned by Peab
AB on 13 February 2013, which do not entitle to dividend, the proposed
dividend is equivalent to a total dividend distribution of SEK
472 million (619). Besides the ordinary dividend, extra cash dividends
may be proposed if the Board of Directors finds there are sufficient
funds which are not considered necessary to Group development.
Extra dividends may also be made in other forms besides cash.
At the start of 2012, Peab’s holding of own shares amounted to
1,086,984 B shares, corresponding to 0.4 percent of the total number
of shares. On 15 May 2012, the Peab Annual General Meeting
authorise the Board of Directors to acquire at the most the number of
shares in Peab AB such that after acquisition Peab would hold a maximum
of 10 percent of the registered shares in the company. During
2012 has no repurchases or divestitures have taken place, which
means that Peab’s holding of own shares at the end of 2012 amounted
to 1,086,984 B shares, corresponding to 0.4 percent of the total
number of shares. The purpose of the purchase of own shares is to
improve the capital structure of the company, to be used in the
financing of acquisitions.
Some of Peab’s loan agreements contain financial covenants in the
form of interest coverage rate and equity/assets ratio which the
Group must comply with, which is normal for this type of loan agreement.
At the end of the year, Peab fulfilled these covenants with a
broad margin.
Note 38 Operational lease contracts
Expensed leasing payments for the period:
Group
MSEK 2012 2011
Minimum leasing payments 393 375
Total leasing costs 393 375
Interminable leasing payments amount to:
MSEK 2012 2011
Within a year 353 309
Between one and five years 560 477
Later than five years 14 2
Total 927 788
Rental of premises and office inventory costs are classified as operating
leasing contracts. The main part of the leasing cost refers to rental
of premises according to the operational lease contracts. The leasing
contracts run without special restrictions and with an option to renew.
Other operational leasing agreements are divided among a number
of lesser agreements.
Leasing income generated by objects that are rented to a third
party is marginal.
Note 39 Investment obligations
In 2012, the Group signed agreements to acquire tangible fixed
assets amounting to SEK 84 million (207).
At the end of 2012, the Group had no commitments to invest in
joint ventures. At the end of 2011, the Group had commitments of
SEK 455 million.
Joint venture companies have committed investments of SEK 740
million (220).
Most of the investment obligations should be regulated in the coming
financial year.
The parent company has not signed any agreements to acquire
tangible fixed assets.
76 PEAB ANNUAL REPORT 2012
Note 40 Pledged assets, contingent
liabilities and contingent assets
Pledged assets
Group Parent company
MSEK
For own liabilities and
provisions
Related to long-term liabilities
to credit institutions:
2012 2011 2012 2011
Real estate mortgages 854 1,894
Floating charges – 3
Assets with attached liens 662 519
Other
Related to current liabilities to
credit institutions:
2 2
Real estate mortgages 604 434
Floating charges 3 –
Assets with attached liens
Total related to own liabilities
353 165
and provisions 2,478 3,017 – –
For own contingent liabilities
and guarantees
Real estate mortgages 6 2
Floating charges 9 8
Assets with attached lines 106 60
Restricted bank balance 0 48
Other
Total for own contingent
42 – – –
liabilities and guarantees 163 118
Other 0 0
Total pledged assets 2,641 3,135 – –
Contingent liabilities Group Parent company
MSEK
Shared obligations as part-
2012 2011 2012 2011
owner in limited partnerships
Guarantees and contracting
guarantees for Group
2 254 – –
companies
Guarantee liabilities for the
– – 16,303 16,069
benefit of joint ventures
Other guarantees and
1,743 519 1,743 519
contingent liabilities 2,714 1,617 2,714 1,607
Total 4,459 2,390 20,760 18,195
Other guarantee and contingent liabilities primarily refer to obligations to
tenant-owner cooperatives.

Note 41 Related parties
Related parties
The Group is subject to considerable influence by Mats Paulsson,
Fredrik Paulsson, Anita Paulsson, Svante Paulsson and Sara Karlsson
together with families, children and companies. Their combined votes
accounted for some 65 percent of the votes in Peab AB per 31
December 2012. As a result of this significant influence on Peab,
transactions with the companies below are classified as transactions
with related parties.
Wihlborgs Fastigheter
Sara Karlsson is a member of the Board of Directors of Wihlborgs
Fastigheter. Sara Karlsson is the daughter of Erik Paulsson who is
Chairman of the Board of Directors of Wihlborgs Fastigheter and has
a significant influence.
Skistar
The Skistar Group is subject to significant influence by brothers Mats
and Erik Paulsson with families and companies through their ownership
of the company. Erik Paulsson is Chairman of the Board of
Directors and Mats Paulsson is a member of the Board of Directors
of Skistar.
Fabege
Svante Paulsson is a member of the Board of Directors of Fabege.
Svante Paulsson is the son of Erik Paulsson who is Chairman of the
Board of Directors and has a significant influence.
Backahill
Svante Paulsson and Sara Karlsson are members of the Board of
Directors of Backahill. Backahill is under considerable influence by
them, together with their father Erik Paulsson. During the year Backahill
founded a new company, Backahill Holding AB, which is 91%
owned by Backahill. Backahill Holding made an offer for all the shares
of Brinova and the acquisition was carried out in July. Peab’s holding
in Brinova was acquired in connection with the offer.
Kranpunkten
Kranpunkten is subject to significant influence by Fredrik Paulsson
with family and companies through their ownership of the company.
Fredrik Paulsson is also CEO of Kranpunkten.
Gullbergs
Fredrik Paulsson was one of the major owners of Gullbergs up to
August 2012 when he sold most of his share of the company. Fredrik
Paulsson is a Board member of the Scandinavian Office Group, which
is now the parent company of Gullbergs.
Subsidiaries
In addition to the related parties noted above for the Group, the parent
company has a close relationship with its subsidiaries, see note 42.
Summary of transactions with related parties
Group
MSEK
Transactions with joint ventures
2012 2011
Sales to joint ventures 759 147
Purchases from joint ventures 169 188
Interest income from joint ventures 50 7
Receivables from joint ventures 1,375 662
Liabilities to joint ventures 111 23
Dividends from joint ventures 127 93
Transactions with associated companies
Dividends from associated companies 5 136
Transactions with Skistar
Sales to Skistar 21 85
Purchases from Skistar 1 4
Receivables from Skistar 2 8
Transactions with Wihlborgs
Sales to Wihlborgs 500 287
Purchases from Wihlborgs 10 9
Receivables from Wihlborgs 56 51
Liabilities to Wihlborgs 2 2
Transactions with Fabege
Sales to Fabege 794 436
Purchases from Fabege 40 36
Receivables from Fabege 156 111
Liabilities to Fabege 4 3
Transactions with Backahill
Sales to Backahill 181 183
Purchases from Backahill 3 2
Receivables from Backahill 19 27
Liabilities to Backahill 1 –
Dividends from Brinova 20 20
Sales of shares in Brinova 518 –
Shareholdings in Brinova, fair value – 491
Transactions with Kranpunkten
Sales to Kranpunkten 31 30
Purchases from Kranpunkten 78 68
Receivables from Kranpunkten 5 5
Liabilities to Kranpunkten 14 14
Transactions with Gullbergs
Sales to Gullbergs 6 6
Purchases from Gullbergs 74 69
Receivables from Gullbergs 1 1
Liabilities to Gullbergs 6 15
PEAB ANNUAL REPORT 2012
77
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Summary of transactions with related parties
Parent company
MSEK
Transactions with subsidiaries
2012 2011
Sales to subsidiaries 96 99
Purchases to subsidiaries 21 18
Receivables from subsidiaries 1,632 1,447
Liabilities to subsidiaries 7,124 4,794
Dividends from subsidiaries 38 1,150
Transactions with joint ventures
Receivables from joint ventures 80 –
Transactions with associated companies
Dividends from associated companies 5 136
Transactions with Skistar
Purchases from Skistar – 3
Transactions with Backahill
Purchases from Backahill 2 2
Dividends from Brinova 20 20
Sales of shares in Brinova 518 –
Shareholdings in Brinova, fair value – 491
Transactions with Gullbergs
Purchases from Gullbergs 1 0
Executive management
For information on salaries and other remuneration to the Board of
Directors and the CEO and senior officers along with information on
costs and obligations relating to pensions and similar benefits and
agreements on retirement remuneration, see note 9.
Transaction terms
Transactions with related parties were priced on general market terms.
78 PEAB ANNUAL REPORT 2012
Note 42 Group companies
Company Corp.ID.nr
Registered
office
Share of
equity
1) 2)
Book value in
parent company,
MSEK
2012 2011
Peab Finans AB 556552-1324 Båstad 100.0% 1,616 1,616
Peab Sverige AB 556099-9202 Båstad 100.0% 3,622 3,522
Peab Sp.z.o.o 40624 Warszawa 100.0%
Kompetenskraft i Solna AB 556737-7683 Solna 100.0%
Kompetansekraft AS 991687971 Oslo 100.0%
KB Muraren 135 916837-9841 Båstad 100.0%
KB Möllevarvet 969639-7877 Båstad 100.0%
Mölletofta i Klippan AB 556069-3953 Klippan 100.0%
KB Snickaren 204 969684-0975 Båstad 100.0%
Interoc Projekt AB 556519-7091 Båstad 100.0%
Torghuset i Värnamo AB 556607-6807 Båstad 100.0%
Peab Elevbyggen AB 556101-0355 Alingsås 100.0%
Peab Projektutveckling Väst AB 556092-9852 Gothenburg 100.0%
S:t Jörgen AB 556341-8887 Gothenburg 100.0%
Peab Trading Väst AB 556594-9590 Gothenburg 100.0%
Lambel AB 556577-8890 Gothenburg 100.0%
Smögen Exploatering AB 556090-5472 Båstad 100.0%
Peab Borås Exploatering AB 556651-7727 Båstad 100.0%
Kreaton AB 556644-5010 Gothenburg 100.0%
Peab Holding Väst AB 556900-2586 Gothenburg 100.0%
Peab Amhult AB 556830-9925 Gothenburg 100.0%
Undertak- och Fasadentreprenader
Sverige AB
556058-5837 Stockholm 100.0%
Rörman Installation & Service
Sverige AB
556026-0316 Sundbyberg 100.0%
Peab Bostad AB 556237-5161 Stockholm 100.0%
Haninge Park KB 916637-2590 Sollentuna 100.0%
Fastighetsbolaget Måsbodarna
556691-9907
Tre AB
Solna 100.0%
Österhöjdens Garage AB 556753-0240 Upplands-
Bro
100.0%
Telge Peab AB 556790-5889 Södetälje 51.0%
Vilunda Parkering AB 556802-5596 Stockholm 100.0%
Peab Trading Öst AB 556778-8749 Stockholm 100.0%
Fastighets AB Isolatorn 556913-9644 Malmö 100.0%
Perioden Fastighets AB 556832-7919 Nyköping 100.0%
Enavallens Fastighets AB 556734-0871 Enköping 100.0%
Peab Trading Solna AB 556793-1554 Solna 100.0%
KB Messingen 916837-9817 Stockholm 100.0%
Fastighets AB Spelhagen 556795-0992 Solna 100.0%
DGV i Enskede AB 556750-3791 Stockholm 100.0%
Messingen AB 556627-1689 Stockholm 100.0%
ATS Service AB 556707-9719 Sigtuna 100.0%
Huvusta Strand Holding AB 556769-7080 Solna 100.0%
Huvusta Strand AB 556109-5323 Solna 100.0%
Hanbjelken AB 556699-4306 Stockholm 100.0%
Forsen 2 i Eskilstuna AB 556749-4801 Eskilstuna 100.0%
Furuspecialen i Nyköping
Fastighets AB
556695-9986 Solna 100.0%
Eldslundfastigheter Sverige AB 556750-2165 Linköping 100.0%
Råsta Arenabostäder AB 556789-3002 Solna 100.0%
Råsta Köpcenterbostäder AB 556789-2921 Solna 100.0%
Peab Hermelinen AB 556872-5633 Stockholm 100.0%
Peab Racketen AB 556721-1635 Stockholm 100.0%
Ångström & Mellgren AB 556592-6895 Västerås 100.0%
Norrvikens Fastigheter AB 556703-1470 Stockholm 100.0%
Fastighetsförvaltningsbolaget
Gasellen 2 HB
916563-4271 Stockholm 100.0%
Olsson & Zarins Baltinvest AB 556439-3592 Uppsala 100.0%
Kungsfiskaren Bygg &
Fastighet AB
556471-2296 Stockholm 100.0%
Kipsala Business Center 40003729343 Riga 100.0%
KB Klagshamn Exploatering 916563-4412 Båstad 100.0%
Peab Construction Syd AB 556292-2368 Båstad 100.0%
Peab Construction
i Göteborg AB
556626-9089 Båstad 100.0%
Peab Utveckling Nord AB 556341-7228 Båstad 100.0%
J Almqvist Bygg i Gnosjö AB 556421-1299 Båstad 100.0%
Peabskolan AB 556442-7432 Båstad 100.0%

Company Corp.ID.nr
Registered
office
Share of
equity
1) 2)
Book value in
parent company,
MSEK
2012 2011
Peab Byggservice Väst AB 556066-3675 Båstad 100.0%
Nybyggarna i Nerike AB 556582-1146 Örebro 100.0%
Kompligens Fastigheter AB 556691-2555 Båstad 100.0%
BKVA Fastighets AB 556694-4244 Båstad 100.0%
Geodells Byggnads AB 556396-4187 Järfälla 100.0%
Peab Fastigheter i Växjö AB 556716-6664 Båstad 100.0%
Peab Ugglarp AB 556094-5072 Båstad 100.0%
HälsingeBygg i Hudiksvall AB 556624-4025 Hudiksvall 100.0%
Värby Fastighets AB 556703-4771 Båstad 100.0%
Peab Exploatering AB 556129-8562 Stockholm 100.0%
Berg och Falk AB 556602-3064 Ödeshög 100.0%
BEFAB Schakt AB 556555-2287 Mjölby 100.0%
Peab Byggservice Nordost AB 556715-4843 Stockholm 100.0%
Peab Filmstaden AB 556773-7506 Båstad 100.0%
Henrik Persson Holding AB 556767-1838 Alingsås 100.0%
Fastighets AB Ekudden 556628-0326 Alingsås 100.0%
AB Alingsås Trähus AB 556576-5194 Alingsås 100.0%
Västgöta Mark och
Entpreprenad AB
556644-1308 Alingsås 100.0%
Husgruppen i Alingsås KB 969728-7887 Gothenburg 100.0%
Lappmarken i Malmö KB 916611-9918 Båstad 100.0%
Peab Sverige AB, dansk filial 1595622 Fredrikshavn 100.0%
Peab Sverige AB, norsk filial 976 580 176 Oslo 100.0%
Peab Trading Nord AB 556715-4827 Solna 100.0%
Fastighetsbolaget Pollaren AB 556715-5337 Solna 100.0%
H2 Helsingborg AB 556544-1986 Båstad 100.0%
Mora-Orsa Byggtjänst AB 556624-6160 Orsa 100.0%
Byggtjänst i Offerdal AB 556835-9755 Solna 100.0%
Peab PGS AB 556428-5905 Båstad 100.0%
Hatteskär AB 556874-6936 Båstad 100.0%
Peab Boarp AB 556715-0247 Båstad 100.0%
Malmöoket AB 556709-6713 Båstad 100.0%
Malmöoket Ekonomisk
Förening
769614-7821 Båstad 100.0%
Malmöoket nr 2 Ekonomisk
Förening
769619-1829 Båstad 100.0%
KB Brämaregården 18:4 969638-3364 Kristianstad 100.0%
Peab Infra Oy 2303725-2 Helsingfors 100.0%
Peab Anläggning AB 556568-6721 Båstad 100.0% – 348
Berg & Väg Maskin AB 556130-4972 Salem 100.0%
Skillingenäs AB 556587-0192 Båstad 100.0%
Peab Drift & Underhåll
i Stockholm AB
556569-4386 Stockholm 100.0%
Stockholm
Hamn entreprenad AB
556036-9133 Stockholm 100.0%
Linje & Kabelplöjning
i Borlänge AB
556487-3098 Borlänge 100.0%
Olof Mobjer Entreprenad AB 556445-1275 Båstad 100.0%
West Wind AB 556615-7797 Solna 100.0%
G Nilsson Last & Planering
i Ranseröd AB
556236-0908 Båstad 100.0%
AB Jämshögs Grus &
Entreprenad AB
556048-3918 Båstad 100.0%
BEFAB Entreprenad Mjölby AB 556595-7452 Linköping 100.0%
Peab Drift & Underhåll
i Mellansverige AB
556581-4612 Linköping 100.0%
Peab Energi AB 556104-1533 Båstad 100.0%
Åstorps Bioenergi AB 556644-8246 Båstad 100.0%
Peab Oy 1509374-8 Helsingfors 100.0% 488 488
Kehitysyhtiö Pyynikki Oy 2214064-5 Helsingfors 100.0%
Eastendin Palvelu Oy 2013178-8 Helsingfors 100.0%
Peab AS 990 040 729 Oslo 100.0% 271 359
Gydas Vei DA 982 796 083 Oslo 100.0%
Björn Bygg AS 943 672 520 Tromsö 100.0%
Peab Eiendomsutvikling AS 987 099 011 Oslo 100.0%
Heimdalsgata 4 Utv. DA 987 572 809 Oslo 100.0%
ANS Solligården 957 524 346 Oslo 100.0%
Peab Bolig Prosjekt AS 990 892 385 Oslo 100.0%
Bergkrystallen Parkering AS 891 324 782 Oslo 100.0%
Peab Næring Stømmen AS 995 518 562 Oslo 100.0%
Polarkanten AS 994 417 657 Oslo 100.0%
Share of
Book value in
parent company,
Registered equity
MSEK
Company Corp.ID.nr office
1) 2) 2012 2011
Telemark Vestfold
Entreprenør AS
959 414 572 Skien 91.0%
Hus & Hyttebygg AS 990 347 093 Skien 100.0%
K.Nordang AS 936 574 696 Stranda 90.1%
Byggservice & Vedlikehold AS 986 346 384 Oslo 100.0% 88 87
Peab Invest AS 981 704 665 Oslo 100.0% 1,332 1,332
Peab Industri AB 556594-9558 Båstad 100.0% 2,588 2,588
Peab Industri Våxtorp AB 556232-8368 Båstad 100.0%
Peab Industri Sverige AB 556594-9624 Ängelholm 100.0%
Lambertsson Sverige AB 556190-1637 Båstad 100.0%
Lambertsson Kran AB 556543-5293 Båstad 100.0%
KB Muraren 105 916837-9544 Mölndal 100.0%
Krantorp KB 969623-0540 Mölndal 100.0%
ATS Kraftservice AB 556467-5998 Båstad 100.0%
Hagström i Nås AB 556377-1376 Vansbro 100.0%
HN Kraftlinjeteknik AB 556411-8585 Vansbro 100.0%
Swerock AB 556081-3031 Helsingborg 100.0%
Swerock Uppsala AB 556031-3289 Uppsala 100.0%
AB Uppsala Grus 556206-6281 Uppsala 100.0%
Rådasand AB 556042-8699 Lidköping 100.0%
Peab Transport & Maskin AB 556097-9493 Örkelljunga 100.0%
AB Roler 556100-0729 Örebro 100.0%
Ferdigbetong AS 987 013 117 Tromsö 100.0%
A-frakt AB 556449-8045 Arvidsjaur 100.0%
P Andersson Fastighet 1
i Mälardalen AB
556824-5624 Helsingborg 100.0%
Bjurholms Lastbilcentral
Ekonomisk Förening
794000-0123 Bjurholm 100.0%
Gryttby Grus och Sand AB 556846-9323 Uppsala 100.0%
P Arvidssons Entreprenad AB 556521-8202 Helsingborg 100.0%
Skandinaviska
Byggelement AB
556034-2148 Helsingborg 100.0%
Lättklinkerbetong AB 556239-1721 Alingsås 100.0%
Peab Asfalt AB 556098-8122 Båstad 100.0%
Asfaltbeläggningar i Boden AB 556279-8768 Boden 100.0%
Pionjären Fastighets AB 556114-9773 Boden 100.0%
Asfalt & Väg i Strängnäs AB 556545-6034 Strängnäs 100.0%
Kvalitetsasfalt i
Mellansverige AB
556537-5432 Västerås 100.0%
Peab Asfalt Norge AS 994 628 577 Oslo 100.0%
Terje Hansen AS 930 969 451 Frogner 100.0%
Peab Grundläggning
Norden AB
556554-1587 Båstad 100.0%
Peab Grundläggning AB 556154-7364 Båstad 100.0%
Nordisk Fundamentering AS 996 217 981 Oslo 100.0%
Peab Bildrift Norden AB 556707-8380 Helsingborg 100.0%
Peab Bildrift Sverige AB 556313-9608 Helsingborg 100.0%
Peab Bildrift Norge AS 892 890 692 Skedsmo 100.0%
Peab Vagnpark AB 556234-0371 Båstad 100.0%
Peab Industri Norge AS 990 609 527 Oslo 100.0%
Lambertsson Norge AS 985 129 738 Skedsmo 100.0%
Kranor AS 976 313 062 Slemmestad 100.0%
Rolf Olsens vei 30/32 AS 990 285 624 Oslo 100.0%
Peab Industri Finland AB 556687-9226 Helsingborg 100.0%
Peab Industri Finland AB,
finsk filial
2006361-5 Helsingfors 100.0%
Peab Industri Oy 1509160-3 Helsingfors 100.0%
Lambertsson Oy 0937993-4 Helsingfors 100.0%
Annehem Fastigheter AB 556683-4452 Båstad 100.0% 272 272
Annehem Fastigheter &
Projekt AB
556715-5220 Båstad 100.0%
Fastighets AB Skeppsdockan
i Malmö
556563-0711 Ängelholm 100.0% 0 0
Fastighets AB Grisen 556466-1055 Båstad 100.0%
Valhall Flyg AB 556718-8593 Ängelholm 100.0%
Valhall Flyg KB 969724-7865 Ängelholm 100.0% 0 0
Br Paulsson Peab AB 556113-4114 Båstad 99.9% 157 157
Stadiongatans
Lokaluthyrning AB
556141-1736 Båstad 100.0%
Norrviken Exploaterings AB 556245-3356 Båstad 100.0%
Vejby Transport & Miljö AB 556240-2742 Ängelholm 100.0% 1 1
Peab Konstruktion AB 556061-1500 Stockholm 100.0% 42 42
PEAB ANNUAL REPORT 2012
79
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Company Corp.ID.nr
Registered
office
Share of
equity
1) 2)
Book value in
parent company,
MSEK
2012 2011
Peab Försäkrings AB 556511-5408 Båstad 100.0% 1,370 171
Fastighets AB Skånehus 556371-3816 Båstad 100.0% 140 –
Peab Holding AB 556594-9533 Båstad 100.0% 0 0
JaCo AB 556554-6487 Båstad 100.0%
Varvstaden AB 556683-1722 Båstad 100.0%
Fältjägaren 1 AB 556851-7287 Östersund 100.0%
Fältjägaren 3 AB 556851-7261 Östersund 100.0%
Fältjägaren 4 AB 556851-7279 Östersund 100.0%
Fältjägaren 5 AB 556851-7246 Östersund 100.0%
Fältjägaren 7 AB 556855-7176 Östersund 100.0%
Östersunds Fryshus &
Fastigheter AB
556094-4810 Östersund 100.0%
Birsta Fastigheter AB 556190-3765 Helsingborg 100.0% 60 60
Peab Norden AB 556134-4333 Båstad 100.0% 7 13
Peab Skandinavien AB 556568-8784 Båstad 100.0% 0 0
Flygstaden Intressenter i
Söderhamn AB
556438-9665 Båstad 100.0% 272 272
HDWG Finans AB 556470-0184 Båstad 100.0%
Ortum AB 556641-8355 Helsingborg 100.0%
Stockholms Kommersiella
Fastighets AB
556105-6499 Stockholm 100.0%
Skånska Stenhus AB 556233-8680 Stockholm 100.0%
Flygstaden Intressenter
i Grevie AB
556541-5360 Båstad 100.0%
Peab Fastighetsutveckling AB 556824-8453 Båstad 100.0% 1 0
Peab Invest Oy 1773022-9 Helsingfors 100.0% – 91
Peab Fastighetsutveckling
Sverige AB
556825-9856 Båstad 100.0%
Peab Ägaarena 1 AB 556741-8552 Solna 100.0%
Peab Ägaarena 2 AB 556741-8560 Solna 100.0%
Peab
Exploateraarenastaden AB
556741-8586 Solna 100.0%
Peab Drivaarena AB 556741-8578 Solna 100.0%
Peab Högsbo AB 556594-4583 Gothenburg 100.0%
Peab Brunnshög AB 556649-9116 Båstad 100.0%
Båramo i Värnamo AB 556713-7871 Båstad 100.0%
Peab Hem AB 556077-8499 Båstad 100.0% – 1
Peab Rydebäck AB 556397-3071 Båstad 100.0%
Peab Vimmerbyvägen AB 556776-4690 Båstad 100.0%
Peab Hisingstorp AB 556776-4708 Båstad 100.0%
Peab Brämaregården AB 556781-6698 Båstad 100.0%
Peab Sofiedal AB 556470-0176 Båstad 100.0%
Peab Kastanjeparken AB 556059-0910 Båstad 100.0%
Peab Utsikten AB 556715-0239 Båstad 100.0%
Peab Porten AB 556831-0030 Båstad 100.0%
Peab Vidar AB 556866-4311 Båstad 100.0%
Isstadion i Lambohov AB 556869-5836 Båstad 100.0%
Annehem Hylliecentrum AB 556683-4478 Båstad 100.0%
Annehem Hyllie point 2 AB 556762-0546 Båstad 100.0%
Annehem Hyllie point 3 AB 556762-0587 Båstad 100.0%
Annehem Bygg & Projekt AB 556699-8430 Båstad 100.0%
Peab Bad AB 556870-3564 Solna 100.0%
Fastighets AB Bryggeriet 556141-6115 Gothenburg 100.0%
Pebri Glumslöv AB 556758-6853 Helsingborg 100.0%
Pebri Glumslöv HB 969717-3335 Helsingborg 100.0%
Åke & Clas Skoogh Holding AB 556722-9066 Kristianstad 100.0%
Peab FU Holding 1 AB 556855-6954 Solna 100.0%
Peab FU Måby AB 556874-6837 Solna 100.0%
INSPI Sweden AB 556796-7970 Stockholm 100.0%
Peab FU Sporthall AB 556901-4557 Solna 100.0%
Peab FU Bryggeriet 1 AB 556901-4524 Solna 100.0%
Peab FU Bryggeriet 2 AB 556901-4565 Stockholm 100.0%
Peab FU Holding 3 AB 556866-8635 Solna 100.0%
Peab FU Almnäs AB 556594-9160 Solna 100.0%
Peab FU Visby AB 556679-4862 Solna 100.0%
Peab FU Byggnad 124 AB 556901-4532 Solna 100.0%
Peab FU Byggnad 183 AB 556901-4540 Solna 100.0%
Peab FU Visby Exploatering AB 556800-9335 Solna 100.0%
Peab FU Karlskrona
Exploatering AB
556746-9688 Stockholm 100.0%
Fartygsmekano AB 556345-8586 Helsingborg 100.0%
80 PEAB ANNUAL REPORT 2012
Company Corp.ID.nr
Registered
office
Share of
equity
1) 2)
Book value in
parent company,
MSEK
2012 2011
Brinova Jupiter 11 AB 556892-3428 Helsingborg 100.0%
Brinova Utveckling AB 556126-0745 Helsingborg 100.0%
Peab FU Holding 2 AB 556864-4156 Solna 100.0%
Peab Projektfastigheter AB 556202-6962 Stockholm 100.0%
TGS Fastigheter Nr 2 AB 556680-5106 Linköping 100.0%
Peab Förvaltning Nyköping AB 556632-7747 Nyköping 100.0%
Peab Park AB 556107-0003 Båstad 100.0% – 2
Kokpunkten Fastighets AB 556759-5094 Stockholm 100.0%
Ängelholms Flygplats AB 556814-2896 Båstad 100.0%
Ljungbyhed Park AB 556545-4294 Båstad 100.0%
Activus Ljungbyhed AB 556558-9644 Båstad 100.0%
Ljungbyheds Golfcenter AB 556571-3012 Båstad 100.0%
Projektfastigheter Götaland AB 556259-3540 Båstad 100.0%
Haga Expolatering AB 556715-4850 Stockholm 100.0%
Skånehus AB 556547-6958 Båstad 100.0%
PEAB FU Silhouette 1 AB 556895-0116 Solna 100.0%
PEAB FU Ångkraftverket
Kontor AB
556895-0082 Solna 100.0%
Ulriksdal Utveckling AB 556509-6392 Solna 100.0%
Riksten Friluftsstad AB 556547-8764 Stockholm 100.0%
Peab FU Rifa AB 556909-4690 Solna 100.0%
Peab FU Rönnåsen AB 556909-4708 Solna 100.0%
Incasec AB 556591-2267 Båstad 100.0% 0 0
Peab Grevie AB 556715-0213 Båstad 100.0% 0 0
Peab Invest Yek AB 556753-4226 Borås 100.0%
Peab Konsult AB 556715-0254 Båstad 100.0% 0 0
Peab Vejby AB 556663-2682 Båstad 100.0% 50 102
Sieglo AB 556556-0595 Båstad 100.0% 169 –
Skåne Projektfastigheter AB 556471-9143 Båstad 100.0% 1 1
Lappmarken i Malmö AB 556796-2849 Stockholm 100.0%
Hyresmaskiner Gösta
Pettersson AB
556082-6470 Båstad 100.0%
Mauritz Larsson Byggnads AB 556036-8242 Båstad 100.0%
HB Muraren 126 916837-9759 Gothenburg 100.0%
Projektfastigheter Väst AB 556044-1866 Båstad 100.0%
Total
1) The capital participation agrees with the vote participation.
12,547 11,525
2) The share of capital in 2012 is the same as the share of capital in 2011 except in
Fastighets AB Bryggeriet, which was owned 100 percent in 2012 but only 25 percent
in 2011, and the companies acquired in 2012.
Parent company
MSEK 2012 2011
Acquisition value brought forward 13,705 13,786
Purchases 509 –
Paid shareholder contribution 1,301 463
Repaid shareholder contribution – –544
Sales –442 –
Accumulated acquisition values brought forward 15,073 13,705
Revaluations brought forward 100 100
Accumulated revaluations carried forward 100 100
Write-downs brought forward –2,280 –2,158
Write-downs for the year –346 –122
Accumulated write-downs carried forward –2,626 –2,280
Book value carried forward 12,547 11,525
During the year, participations in Group companies were written down by
SEK 346 million (122). The write-downs refer to shares in Peab AS for a
total of SEK 294 million based on impairment tests. In the calculation of
the useful value of Peab AS a pre-tax weighted discount rate for Norway
of 7.3 percent (7.4) has been used. Other write-downs refer to dormant
companies or companies with little activity where the value of the writedowns
is equivalent to equity. Annual write-downs are reported in the
income statement on the “Profit from shares in Group companies” line.

Note 43 Untaxed reserves
Parent company
MSEK 2012 2011
Tax allocation reserve
Accumulated additional depreciation, machinery
156 156
and equipment 0 0
Total 156 156
Note 44 Cash flow statement
Paid interest and dividends received
Group Parent company
MSEK 2012 2011 2012 2011
Dividends received 178 250 70 157
Interest received 141 121 40 38
Interest paid –418 –352 –203 –217
Adjustments for items not included in cash flow
Group Parent company
MSEK
Profit from participation in joint
2012 2011 2012 2011
ventures/associated companies
Dividends received from joint
–120 –21
ventures/associated companies
Group contribution received/
132 228
given – – –206 –834
Depreciation and write-downs
Unrealized exchange rate
964 853 346 253
differences 7 4
Result from sale of fixed assets
Result from sale of business/
–200 –75 –42 –
subsidiary –92 –45
Provisions
Change in fair value of financial
78 43
instruments
Accrued expenses and
–30 93 –25 89
provisions – –59
Dividends from subsidiaries – – – –1,146
Total 739 1,021 73 –1,638
Transactions without payments
Group
MSEK 2012 2011
Aquisition of assets by financial leasing
Aquisition of subsidiaries financed by loan
196 345
from the seller 52 –
Acquisition of subsidiaries and businesses
Group
MSEK
Acquired assets and liabilities
2012 2011
Intangible assets 16 129
Tangible assets 23 146
Financial assets 21 –16
Deferred tax recoverables 15 57
Project and development property and inventories 718 323
Operating receivables 22 305
Liquid funds 163 52
Long-term provisions – –5
Interest-bearing long-term liabilities –272 –170
Deferred tax liabilities –16 –36
Current liabilities –69 –392
621 393
Recognized negative goodwill – –12
Purchase prices 621 381
Loan from seller –52 –
Paid purchase price 569 381
Less: Liquid funds in acquired companies –163 –52
Effect on liquid funds 406 329
PEAB ANNUAL REPORT 2012
81
NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

NOTES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Disposal of subsidiaries
Group
MSEK
Sold assets and liabilities
2012 2011
Financial assets
Project and development properties and
3 –161
inventories 863 1,083
Operating receivables 22 15
Liquid funds 2 2
Interest-bearing long-term liabilities –813 –816
Deferred tax liabilities 2 –5
Current liabilities –34 –51
45 67
Sales price 137 112
Less: Loan to buyer – –33
Received purchase sum 137 79
Less: Liquid funds in disposed companies –2 –2
Effect on liquid funds 135 77
Liquid funds
The following components are included in liquid funds;
Group
MSEK 2012 2011
Liquid funds 429 961
Current holdings (equivalent to liquid funds) 10 9
Total 439 970
82 PEAB ANNUAL REPORT 2012
Note 45 Events after the balance sheet day
Peab is working on several major projects for Northland Resources
that are connected to the iron ore mine in Kaunisvaara outside Pajala.
In regards to the information published by Northland Resources on
8 February 2013 concerning the company’s reconstruction, Peab
announced that the company’s outstanding accounts receivable from
companies in the Northland Group amount to approximately SEK 160
million, of which about SEK 70 million is included in the reconstruction.
No write-downs are deemed necessary. During the reconstruction
period Peab will receive regular payments for work performed.
Peab is keeping close contact with Northland Resources regarding
their financial development.
Note 46 Information on parent company
Peab AB is a Swedish registered limited company domiciled in Båstad.
Peab AB’s shares are listed on NASDAQ OMX Stockholm. The address
of the head office is Margretetorpsvägen 84, SE-260 92 Förslöv. The
consolidated accounts for 2012 consist of the parent company and
its subsidiaries, together referred to as the Group. The Group also
includes shares of holdings in joint ventures and associated
companies.

The Annual Report has been prepared in accordance with good accounting practices in Sweden and the consolidated
accounts have been prepared in accordance with International Accounting Standards, stated in the regulation of the
European Parliament and the Council of Ministers (EG) no 1606/2002 of July 19, 2002, concerning the application of
international accounting standards. The Annual Report and the consolidated accounts give a true and fair view of the
parent company as well as of the Group’s position and result. The Board of Directors’ report for the parent company and
the Group gives a true and fair view of the parent company’s and Group’s business development, position and result.
It also decribes the major risks and uncertainty factors facing the parent company and Group companies.
Förslöv, April 3, 2013
Göran Grosskopf Mats Paulsson
Chairman of the Board Vice Chairman of the Board
Annette Brodin Rampe Karl-Axel Granlund
Member of the Board Member of the Board
Svante Paulsson Fredrik Paulsson
Member of the Board Member of the Board
Lars Sköld Anne-Marie Pålsson
Member of the Board Member of the Board
Patrik Svensson Kim Thomsen
Member of the Board Member of the Board
Lars Modin Jesper Göransson
Member of the Board Chief Executive Officer
BOARD AND CEO ASSURANCE
The Annual Report and the consolidated accounts have been approved for publication by the Board of Directors and
the Chief Executive Officer on April 3, 2013. The consolidated income statement and balance sheet and the parent
company’s income statement and balance sheet will be presented for adoption by the AGM on May 14, 2013.
PEAB ANNUAL REPORT 2012
83

AUDITORS’ REPORT
Auditors’ report
To the annual meeting of the shareholders of Peab AB, corp. id. 556061-4330
REPORT ON THE ANNUAL ACCOUNTS AND
CONSOLIDATED ACCOUNTS
We have audited the annual accounts and consolidated accounts
of Peab AB for the year 2012. The annual accounts and consolidated
accounts of the company are included in the printed version of
this document on pages 13–83.
Responsibilities of the Board of Directors and the Managing
Director for the annual accounts and consolidated accounts
The Board of Directors and the Managing Director are responsible
for the preparation and fair presentation of these annual accounts
in accordance with International Financial Reporting Standards, as
adopted by the EU, and the Annual Accounts Act, and for such
internal control as the Board of Directors and the Managing Director
determine is necessary to enable the preparation of annual
accounts and consolidated accounts that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these annual
accounts and consolidated accounts based on our audit. We
conducted our audit in accordance with International Standards on
Auditing and generally accepted auditing standards in Sweden.
Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
about whether the annual accounts and consolidated accounts are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the annual accounts
and consolidated accounts. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks of
material misstatement of the annual accounts and consolidated
accounts, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
company’s preparation and fair presentation of the annual
accounts and consolidated accounts in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the
company’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Board of Directors and
the Managing Director, as well as evaluating the overall presentation
of the annual accounts and consolidated accounts.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the annual accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material
respects, the financial position of the parent company as of 31
December 2012 and of its financial performance and its cash flows
for the year then ended in accordance with the Annual Accounts
Act. The consolidated accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material
respects, the financial position of the group as of 31 December
2012 and of their financial performance and cash flows for the year
then ended in accordance with International Financial Reporting
Standards, as adopted by the EU, and the Annual Accounts Act.
84 PEAB ANNUAL REPORT 2012
The statutory administration report is consistent with the other parts
of the annual accounts and consolidated accounts.
We therefore recommend that the annual meeting of shareholders
adopt the income statement and balance sheet for the parent
company and the group.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the proposed appropriations of the
company’s profit or loss and the administration of the Board of
Directors and the Managing Director of Peab AB for the year 2012.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors is responsible for the proposal for appropriations
of the company’s profit or loss, and the Board of Directors
and the Managing Director are responsible for administration under
the Companies Act.
Auditor’s responsibility
Our responsibility is to express an opinion with reasonable assurance
on the proposed appropriations of the company’s profit or
loss and on the administration based on our audit. We conducted
the audit in accordance with generally accepted auditing standards
in Sweden.
As basis for our opinion on the Board of Directors’ proposed
appropriations of the company’s profit or loss, we examined the
Board of Directors’ reasoned statement and a selection of supporting
evidence in order to be able to assess whether the proposal
is in accordance with the Companies Act.
As basis for our opinion concerning discharge from liability, in
addition to our audit of the annual accounts and consolidated
accounts, we examined significant decisions, actions taken and
circumstances of the company in order to determine whether any
member of the Board of Directors or the Managing Director is liable
to the company. We also examined whether any member of the
Board of Directors or the Managing Director has, in any other way,
acted in contravention of the Companies Act, the Annual Accounts
Act or the Articles of Association.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinions.
Opinions
We recommend to the annual meeting of shareholders that the profit
be appropriated in accordance with the proposal in the statutory
administration report and that the members of the Board of Directors
and the Managing Director be discharged from liability for the
financial year.
Förslöv, 3 April 2013
Alf Svensson Thomas Thiel
Authorized Public Accountant Authorized Public Accountant

A Nordic Community Builder:
Sweden’s biggest infrastructure
project for research
Max IV Laboratory, Lund, December 2012: Peab has initiated construction of the second
stage of what is currently Sweden’s biggest infrastructure project for research ever, the Max IV
Laboratory in Lund. A gigantic super microscope will make it possible to study different kinds of
materials and their characteristics down to their most minute parts. Together with professors
from Lund University and the architect firm Snøhetta Peab has developed several innovative
solutions to meet the project’s greatest challenge; vibrations. The microscope’s synchronous
light is a fourth of a strand of hair wide and needs to be kept perfectly still. The project is a model
of sustainable construction in Europe. The facility, which will open in 2015, will be an important
place for thousands of researchers in the Nordic region and Europe making it an essential part of
a new research community.
Read more about Max lV at www.peab.se/MAXIV.
MAX IV
Lund
PEAB ANNUAL REPORT 2012
85

CORPORATE GOVERNANCE
Corporate governance report
Governance of the Peab Group is based on the Company Act and other
relevant laws, Peab’s Articles of Association, the regulations for Nasdaq
OMX Stockholm issuers and the Swedish Code of Corporate Governance.
CORPORATE GOVERNANCE
AND THE CODE
The corporate governance report is not a
part of the financial reports. The company’s
auditors read the corporate governance
report and acknowledge that a corporate
governance report has been drawn up and
that its legally stipulated information is
consistent with the annual accounts and
Group accounts.
THE ANNUAL GENERAL MEETING
AND THE NOMINATION PROCEDURE
The Annual General Meeting (AGM) was
held on 15 May 2012 at Grevieparken,
Grevie. It was attended by 399 shareholders,
representing over 76 percent of the
votes, either personally or through representatives.
The procedure of preparing the nomination
of members of the Board of Directors
(and where appropriate the auditors) for the
AGM follows the nomination procedure
established at the previous AGM.
At the 2012 AGM the major shareholders
recommended a nomination committee
consisting of the Chairman of the Board of
Directors and an additional three to four
Board meetings, attendance 2012
AMG elected members 30/1 14/2 2/4 15/5 15/5 1) 22/5 9/7 20/8 14/11
Göran Grosskopf • • • • • • • • •
Mats Paulsson • • • • • • • •
Karl-Axel Granlund • • • • • • • • •
Fredrik Paulsson • • • • • • • • •
Svante Paulsson • • • • • • • • •
Anne-Marie Pålsson • • • • • • • • •
Anette Brodin Rampe • • • • • • • • •
Lars Sköld • • • • • • • • •
Employee representatives
Patrik Svensson, member • • • • • • • • •
Kim Thomsen, member • • • • •
Lars Modin, member • • • • • • • •
Lars Bergman, deputy • • •
Monica Mattson, deputy • • • • • • • •
1) Constitutional Board meeting
• Attendance
86 PEAB ANNUAL REPORT 2012
members, of which two to three members
should represent the major shareholders
and one to two members should represent
smaller shareholders. The AGM elected
Malte Åkerström (reelection), Göran Grosskopf
(reelection), Bengt Johansson (new
election) and Magnus Swärdh (new election)
to act as Peab’s nomination committee
with Bengt Johansson as Chairman. The
nomination committee’s proposals will be
presented to shareholders in the notice to
attend the 2013 AGM. An account of the
work of the nomination committee will be
available on Peab’s website.
THE BOARD OF DIRECTORS
AND ITS WORK
According to Peab’s Articles of Association
the Board of Directors must be made up of
no fewer than five and no more than nine
members in addition to the statutory
employee representatives. The members of
the Board of Directors are elected annually
by the AGM. At the 2012 AGM the following
persons were reelected as members of the
Board of Directors:
Göran Grosskopf
Karl Axel Granlund
Göran Grosskopf, Chairman of the Board
Fredrik Paulsson
Mats Paulsson
Svante Paulsson
Anne-Marie Pålsson
Annette Brodin Rampe
Lars Sköld
Göran Grosskopf was appointed Chairman
of the Board by the AGM.
The following employee representatives
were appointed by the employee unions
at the 2012 AGM: Patrik Svensson, Kim
Thomsen and Lars Modin (members), Lars

Auditors
Information
Election Shareholders
Constitute the Annual
Election
Information
General Meeting
Proposals
Construction
Bergman and Monica Mattson (deputies).
The Board of Directors held nine meetings
in 2012, of which five were ordinary
Board meetings (including the constitutional
meeting). There were four were additional
Board meetings, three were held per
telephone and one was held per capsulam.
Members of executive management
have given reports at the Board meetings.
The company auditor was present at two of
the ordinary Board meetings. The Board’s
work follows the work program adopted by
the Board of Directors at the constitutional
meeting. The Board evaluates its work on
an annual basis.
The members of the Board of Directors
elected by the shareholders are compensated
in accordance with decisions taken
by the AGM.
The majority of the AMG elected
members of the Board of Directors (Göran
Grosskopf, Karl-Axel Granlund, Anne-
Marie Pålsson, Annette Brodin Rampe and
Lars Sköld) are independent in relation to
the company and executive management.
They are also independent in relation to the
company’s major owners. Mats Paulsson,
Fredrik Paulsson and Svante Paulsson are
regarded as dependent in relation to the
company and executive management.
THE AUDIT COMMITTEE
Members in 2012
Göran Grosskopf, Chairman
Karl-Axel Granlund
Fredrik Paulsson
Mats Paulsson
Svante Paulsson
Anne-Marie Pålsson
Annette Brodin Rampe
Lars Sköld
The audit committee prepares the work of
the Board of Directors by ensuring the
Goals
Strategies
Governance
mechanisms
Election
Board of Directors
Reports
Internal audit
CEO and
Executive management
Civil
Engineering
Industry
CORPORATE GOVERNANCE
Nomination
Committee
Finance committee
Remuneration committee
Audit committee
Property
Development
quality of company financial reports, establishing
guidelines for which other services
besides auditing the company may procure
from the company accountant, maintaining
regular contact with the company accountant
regarding the scope and focus as well as
their view of company risks, evaluating the
auditing work and informing the nomination
committee of the evaluation and assisting
the nomination committee in producing
proposals for auditors and remuneration for
auditing work. The auditing committee met
twice in 2012. All members of the committee
attended, as did the company accountants.
The audit committee regularly reports to the
Board of Directors.
THE FINANCE COMMITTEE
Members in 2012
Göran Grosskopf, Chairman,
Karl-Axel Granlund
Mats Paulsson
The finance committee handles and makes
decisions on financial matters in accordance
with the Finance Policy established by
the Board of Directors. Executive management
representatives give reports to the
finance committee meetings. The finance
committee met nine times during 2012. All
members attended all meetings. The
finance committee regularly reports to the
Board of Directors.
THE REMUNERATION COMMITTEE
Members in 2012
Göran Grosskopf, Chairman,
Karl-Axel Granlund,
Mats Paulsson
The remuneration committee prepares
guidelines and the framework for Group
executives regarding salaries and other
terms of employment. The remuneration
committee met once in 2012. All members
Group functions
of the committee participated. The remuneration
committee regularly reports to the
Board of Directors.
REMUNERATION TO EXECUTIVE
MANAGEMENT
The 2012 Annual General Meeting
approved the Remuneration Policy for
executive management. The remuneration
policy is available on Peab’s website, www.
peab.se. Information about salaries and
other remuneration to the CEO and
members of executive management can be
found in note 9 in the Annual Report, page
56, and on our website.
INCENTIVE PROGRAM
Peab has no outstanding share or sharerelated
incentive programs for the Board of
Directors or the executive management.
AUDITORS
Under Peab’s articles of association one or
two auditors with an equal number of deputies
are elected by the AGM. At the AGM in
2009 the following certified public accountants
were elected until the AGM 2013:
Accountants
Alf Svensson, KPMG (reelection)
Thomas Thiel, KPMG (new election)
Deputy accountants
Dan Kjellqvist, KPMG (reelection)
David Olow, KPMG (new member)
In addition to auditing, the accountants,
deputy accountants and KPMG have only
provided services for Peab in the form of
accounting and tax advisement and certain
analyses in connection with acquisitions
and divestments over the last three years.
GROUP MANAGEMENT
The President and CEO leads the company
PEAB ANNUAL REPORT 2012
87

CORPORATE GOVERNANCE
KUGGEN
Gothenburg
according to the framework established by
the Board of Directors and is responsible for
the administration and control of the Group.
Executive management has during 2012
consisted of the CEO, the Deputy CEO
responsible for Finance and treasury, the
Deputy CEOs and Business Area Managers
of Construction, Civil Engineering, Industry
and Property Development, the HR Director
and the Head of Strategy.
Executive management meetings are
held once a month and address issues of
strategy and tactics to improve operations.
Heads of Group staff teams and other
officers are called to attend meetings when
needed.
BUSINESS AREAS
Group operations are run in four business
areas: Construction, Civil Engineering,
Industry and Property Development. Each
business area has a management team led
by the BA Manager and consisting otherwise
of operational managers in the business
area and staff members.
GROUP STAFF
Group staff, which supports both executive
management and operations in the business
areas, strategically and in day-to-day
operations, is been divided into the
following teams:
Finance and treasury
88 PEAB ANNUAL REPORT 2012
HR
Purchasing and logistics
Strategy and business support
Operations development
Communication
The staff teams work independently with
defined goals and coordinate their work in
dialogue with each other.
BUSINESS GOVERNANCE
Executive management sets overriding
goals and strategies for the business in the
Group’s business plan. This is then broken
down and worked with in the different business
areas that set up their own business
plans for divisions, regions and companies.
Peab’s organization is characterized by
its clearly decentralized production focus
and delegation of authority and responsibility
in order to achieve efficient management
and control in each business area.
Control is ensured through a clear line
of decision authority for every type of major
decision which includes:
the requirement for special approval by
executive management, or an organ
delegated by it, for the acquisition of
development property,
businesses and other major investments,
predetermined levels for bidding
for individual positions,
centrally determined principles for
board appointments and signing for the
company.
ETHICAL GUIDELINES
Peab founded its ethical work on Peab’s
core values; Down-to-earth, Developing,
Personal and Reliable many years ago.
These core values form the basis of
“Peab’s Ethical Guidelines” established by
executive management. We work continuously
to spread and root Peab’s Ethical
Guidelines throughout the organization.
THE BOARD OF DIRECTORS’
DESCRIPTION OF INTERNAL
CONTROL AND RISK MANAGEMENT
CONCERNING FINANCIAL REPORTING
Peab’s Board of Directors is responsible for
ensuring that there are efficient procedures
for the management and control of the
Group regarding financial reporting. The
CEO is responsible for ensuring that internal
control is organized and follows the guidelines
laid down by the Board of Directors.
There is a clear set of rules in the Group for
the delegation of responsibility and authority
which follows the Group’s operative structure.
Financial steering and control is
performed by Group Finance and treasury.
The Board of Directors’ guidelines for
internal control concerning financial
reporting were laid down in the Internal

Control Policy. This policy establishes the
way in which the internal control of financial
reporting is organized, reviewed and
assessed based on the following factors:
Risk assessment
Control environment
Control structure
Information and communication
Evaluation/follow-up
Executive management with the support of
Group staff Finance and treasury are
responsible for ensuring that all business
units in the Group follow the policy. In 2012
work on strengthening the central coordination
of internal control and risk management
was initiated. The CEO is responsible
for ensuring that financial reporting is
reported to the Board of Directors at the
first ordinary meeting of the Board of Directors
after the end of every financial year.
The Board of Directors has assessed
the need for an internal auditing department
and determined that the existing control
structure together with the scope of the
Group’s operations do not motivate establishment
of an internal auditing department.
DEVIATIONS FROM THE CODE
Peab has elected to make the following
deviations from the code:
Code rule 9:2
The Chairman of the Board may chair the
remuneration committee.
Other members elected by the AGM
must be independent in relation to the
company and Group management.
Deviation
Mats Paulsson, who is a member of the
remuneration committee, is not independent
in relation to the company and
Group management.
Explanation of the deviation
The Board wishes to take advantage of the
long and unique experience in matters of
compensation for senior officers that founder
and former CEO of Peab, Mats Paulsson,
has. The majority of the members of the
remuneration committee are independent in
relation to the company and Group management
and this is believed to guarantee the
objectivity and independence of the remuneration
committee.
AUDITORS’ STATEMENT ON THE
CORPORATE GOVERNANCE REPORT
To the Annual General Meeting
of Peab AB (publ) Company
ID nr. 556061-4330
The Board of Directors and the Chief Executive
Officer are responsible for the corporate
governance report 2012 on pages 86-89 and
that it has been prepared according to the
Annual Accounts Act.
CORPORATE GOVERNANCE
We have read the corporate governance
report and based on this reading and our
knowledge of the company and the Group
we believe we have sufficient grounds for
our statement. This means that our statutory
review of the corporate governance
report has a different focus and a much
more narrow scope than compared to the
focus and scope of an audit according to
the International Standards on Auditing and
the professional code for auditors in
Sweden.
In our opinion a corporate governance
report has been prepared, and its legal contents
agree with the annual accounts and
Group accounts.
Förslöv, 3 April 2013
Alf Svensson
Authorized Public Accountant
Thomas Thiel
Authorized Public Accountant
PEAB ANNUAL REPORT 2012
89

BOARD OF DIRECTORS
Board of Directors
Göran Grosskopf
Born 1945. Appointed 2004.
Professor, LLD and Dr Econ
Chairman of the Board of Peab
AB, Ingka Holding BV, ColoPlus
AB, Mats Paulsson’s Foundation
and Medicon Village AB.
Member of the boards of
Appo Services AG and
Birgma International SA.
Formerly professor of tax law and
working chairman of the board
of Tetra Laval Group.
Holding: 460,000 B shares
Annette Brodin Rampe
Born 1962. Appointed 2000.
MSc (engineering)
Senior Partner of Brunswick
Group.
Member of the boards of
Ernströmgruppen AB, IVA´s
Näringslivsråd and British
Swedish Camber of Commerce.
Formerly various positions in
E.ON Sverige AB, Exxon Chemical
Inc and CEO of Senea AB.
Holding: 50,000 B shares
Patrik Svensson
Born 1969. Appointed 2007.
Foreman Construction
Sweden
Employee representative
Holding: None
Karl-Axel Granlund
Born 1955. Appointed 2000.
MSc (economics), MSc
(engineering)
Principle owner and chairman
of the board of Volito AB.
Holding: 18,402,000 B shares
Lars Sköld
Born 1950. Appointed 2007.
Chairman of the Boards of
Kulturgastronomen AB,
Södertuna slotts drift AB and
Södertuna Konferensslott AB.
Holding: 15,000 B shares
Kim Thomsen
Born 1965. Appointed 2008.
Carpenter Construction
Sweden
Employee representative
Holding: None
Lars Modin
Born 1957. Appointed 2011.
Project Manager Construction
Sweden
Employee representative
Holding: None
Mats Paulsson
Born 1944. Appointed 1992.
Vice chairman of the Board
of Peab AB.
Member of the boards of
Skistar AB, Mentor Sverige AB,
Mats Paulsson’s Foundation
and Medicon Village AB.
Formerly various positions
in Peab since 1959.
Holding: 9,754,910 A shares
37,255,750 B shares
Fredrik Paulsson
Born 1972. Appointed 2009.
Member of the board and
CEO of Kranpunkten i
Skandinavien AB. Member
of the board of Scandinavian
Resort AB, Scandinavian
Office Group AB, Stichting
INGKA Foundation, Stichting
IKEA Foundation and Stichting
IMAS Foundation.
Holding: 4,261,430 A shares,
6,002,154 B shares
Lars Bergman
Born 1951. Appointed 2008.
Civil Engineering worker
Employee representative
(deputy)
Holding: None
The holdings reported were those on 28 February 2013. Holdings include those of spouses, children who are minors and private company holdings.
90 PEAB ANNUAL REPORT 2012
Svante Paulsson
Born 1972. Appointed 2003.
Project and Strategy Manager
of Backahill AB.
Member of the boards of
Fabege AB, Bilia AB,
Backahill AB, AB Cernelle
and Rögle BK.
Holding: 7,824,715 A shares
1,350,705 B shares
Anne-Marie Pålsson
Born 1951. Appointed 2011.
MA University of California,
Ph.D.Economics from Lund
University
Vice chairman of the Board
Länsförsäkringar Skåne.
Member of the board of
GLB AB.
Holding: 3,000 B shares
Monica Mattsson
Born 1952. Appointed 2011.
Credit coordinator
Employee representative
(deputy)
Holding: None

Executive management
Jesper Göransson
CEO and acting President
Acting BA Manager
Construction
CFO
Born 1971
Employed since 1996
Holding: 412,000 B shares
Roger Linnér
BA Manager Civil
Engineering
Operative Manager BA
Construction
Born 1970
Employed since 1996
Holding: None
Auditors
Alf Svensson
Born 1949
Authorized public accountant,
KPMG.
Auditor in Peab AB since 2007.
Niclas Winkvist
Strategy and business
support
Born 1966
Employed since 1995
Holding: 90,000 B shares
Karl-Gunnar Karlsson
BA Manager Industry
Born 1956
Employed since 2003
Holding: 16,450 B shares
Thomas Thiel
Born 1947
Authorized public accountant,
KPMG.
Auditor in Peab AB since 2009.
Deputy auditors
Dan Kjellqvist, Authorized public accountant, KPMG and David Olow, Authorized public accountant, KPMG.
EXECUTIVE MANAGEMENT AND AUDITORS
Tina Hermansson Berg
Human Resources, safety
and ethics
Born 1969
Employed since 2012
Holding: 3,200 B shares
Tomas Anderson
BA Manager Property
Development
Born 1956
Employed since 1996
Holding: 35,100 B shares
The holdings reported were those on 28 February 2013. Holdings include those of spouses, children who are minors and private company holdings.
Tore Hallersbo
Deputy CEO
Manager Division Norway,
Finland and Special Projects
in BA Construction
Born 1955
Employed since 2005
Holding: None
PEAB ANNUAL REPORT 2012
91

THE PEAB SHARE
A weak year on the stock market
Peab’s B share is listed on the NASDAQ OMX Stockholm, LargeCap.
As of 31 December 2012 the total market capital of Peab was
SEK 9.2 billion (10.3).
TRADING IN THE PEAB SHARE
As of 31 December 2012 the closing price
of the Peab share was SEK 31.04, which
was a 9.5 percent decrease during the
year. The Swedish Stock Exchange,
measured by the OMX Nordic Stockholm,
increased in 2012 by 10.5 percent. In 2012,
the Peab share was quoted at a maximum
of SEK 39.70 and a minimum of SEK 28.91
and 69 million shares (111) were traded,
which is equivalent to 274,000 shares per
trading day (412,000).
SHARES AND SHARE CAPITAL
The total number of shares at the beginning
of 2012 was 296,049,730 divided into
34,319,957 A shares with 10 voting rights
per share and 261,729,773 B shares with
1 voting right per share. The share capital
amounted to SEK 1,583.9 million.
At the end of 2012 the number of A
shares was 34,319,957 representing 11.6
percent (11.6) of capital and 56.7 percent
(56.7) of the votes and the number of B
shares was 261,729,773 representing 88.4
percent (88.4) of capital and 43.3 percent
(43.3) of the votes.
Price trend of the Peab share
2 Januari 2012 – 29 February 2013
50
40
30
20
10
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
2012 2013
Peab’s B Share
No. of shares traded
OMX Stockholm PI
SX201030 Construction & Engineering PI
(including after-hours trading)
Source: SIX Telekurs
92 PEAB ANNUAL REPORT 2012
Information on share capital development
over time is available at www.peab.com.
CONVERTIBLE PROMISSORY NOTES
Convertibles 2007/2012 matured on 30
November 2012. There have been no
conversions to shares and the loan has
been paid in full.
HOLDINGS OF OWN SHARES
At the beginning of 2012 Peab’s own B
share holding was 1,086,984 which corresponds
to 0.4 percent of the total number of
shares. Peab’s Annual General Meeting on
15 May 2012 resolved to authorise the
Board to, during the period until the next
Annual General Meeting, acquire shares so
that the company would have at most 10
percent of the total shares in Peab AB. No
own shares were repurchased or divested
in 2012, which means that Peab’s holding
of own shares at the end of 2012 amounted
to 1,086,984 B shares.
DIVIDEND
A dividend of SEK 1.60 (2.10) per share is
proposed for 2012. Calculated as a
Peab share, total return
31 December 2007 – 31 December 2012
150
125
100
75
50
25
percentage of the Group’s reported profit
after tax the proposed dividend amounts to
65 percent (66), which is in line with the
dividend financial target. The direct return
calculated on the proposed dividend and at
the closing price on 31 December 2012 is
5.2 percent (6.1).
0
2007 2008 2009 2010 2011 2012 2013
Peab total return
SIXRX
Source: SIX Telekurs

List of shareholders on 28 February 2013
A shares B shares
Total
number
of shares
THE PEAB SHARE
Proportion
of
capital, %
Proportion
of
votes, %
Mats Paulsson with companies 9,754,910 37,255,750 47,010,660 15.9 22.3
Karl-Axel Granlund with family and companies 18,402,000 18,402,000 6.2 3.0
Folksam 11,400,000 11,400,000 3.9 1.9
Anita Paulsson with family and companies 4,261,431 6,013,905 10,275,336 3.5 8.0
Fredrik Paulsson with family and companies 4,261,430 6,002,154 10,263,584 3.5 8.0
Svante Paulsson with family and companies 7,824,715 1,350,705 9,175,420 3.1 13.2
Sara Karlsson with family and companies 7,881,948 863,299 8,745,247 3.0 13.2
Kamprad family foundation 8,581,236 8,581,236 2.9 1.4
Peab’s profit-share foundation 7,803,432 7,803,432 2.6 1.3
Länsförsäkringar Funds 5,514,810 5,514,810 1.8 0.9
Lannebo Fonder 5,512,029 5,512,029 1.8 0.9
Handelsbanken Funds 4,891,231 4,891,231 1.6 0.8
Danica Pension 4,276,300 4,276,300 1.4 0.7
Swedbank Robur Funds 3,533,099 3,533,099 1.2 0.6
SEB Investment Management 3,417,095 3,417,095 1.2 0.6
Foreign shareholders 29,905,229 29,905,229 10.1 4.9
Others 335,523 105,920,515 106,256,038 35.9 18.1
Number of outstanding shares 34,319,957 260,642,789 294,962,746
Peab AB 1,086,984 1,086,984 0.4 0.2
Number of registered shares 34,319,957 261,729,773 296,049,730 100.0 100.0
Data per share
2012 2011
Earnings, SEK 2.47 3.26
– after dilution 2.47 3.26
Equity, SEK 27.07 26.94
– after dilution 27.07 28.10
Cash flow before financing, SEK 0.34 –3.71
– after dilution 0.33 –3.60
Share price at year-end, SEK 31.04 34.30
Share price/equity, % 114.7 127.3
Dividend, SEK 1) 1.60 2.10
Direct return, % 2) 5.2 6.1
P/E-ratio 2) 1) For 2012, Board of Directors’ proposal to the AGM
2) Based on closing price at year-end
13 11
Earnings and dividend per share
SEK SEK
8
4
1)
6
4
2
0
2008
2009
2010
2011
2012
Equity per share Dividend per share
Equity per share
SEK
30
25
20
15
10
5
0
2008
2009
2010
2011
2012
Shares and votes per share class 3)
Share class Number
Shareholder categories, proportion
of capital 3)
31%
13%
1) For 2012, Board of Directors’ proposal to the AGM 3) Per 2013-02-28
3
2
1
0
4%
17%
35%
Number
of votes
Shareholder categories, proportion
of votes 3)
6%
28%
2%
Proportion of
capital, %
8%
Proportion of
votes, %
A 34,319,957 10 11.6 56.7
B 261,729,773 1 88.4 43.3
Total 296,049,730 100.0 100.0
Financial companies and trust funds
Other Swedish legal entities
Allocation of shareholdings3) Number
Number of Proportion
of shares
shareholders of capital, %
Interest organizations
Foregin shareholders
Proportion
of votes, %
1– 500 14,440 1.0 0.5
501– 1 000 5,495 1.6 0.8
1 001– 5 000 8,101 6.8 3.3
5 001– 10 000 1,598 3.9 1.9
10 001– 15 000 718 2.9 1.4
15 001– 20 000 269 1.6 0.8
20 001– 745 82.2 91.3
31,366 100.0 100.0
3) Per 2013-02-28
56%
Swedish private persons
PEAB ANNUAL REPORT 2012
93

FIVE-YEAR OVERVIEW
Group
MSEK 2012 2011 2010 2009 1) 1) 2) 2008
Income statement items
Net sales 46,840 43,539 38,045 34,868 34,132
Operating profit 1,055 1,505 1,503 1,573 1,349
Pre-tax profit 813 1,195 1,513 1,619 1,014
Profit for the year 725 943 1,190 1,301 1,093
Balance sheet items
Fixed assets 9,786 10,850 9,657 8,982 8,192
Current assets 22,287 20,499 17,923 17,632 17,500
Total assets 32,073 31,349 27,580 26,614 25,692
Equity 7,984 7,947 7,673 7,563 6,370
Non-controlling interests 1 0 0 43 92
Long-term liabilities 7,759 8,208 6,061 6,060 5,897
Current liabilities 16,329 15,194 13,846 12,948 13,333
Total equity and liabilities 32,073 31,349 27,580 26,614 25,692
Key ratios
Operating margin, percent 2.3 3.5 4.0 4.5 4.0
Profit margin, percent 2.8 3.8 4.6 5.4 4.5
Return on equity, percent 9.2 12.1 15.6 18.7 21.9
Capital employed 16,618 17,094 14,712 15,440 13,277
Return on capital employed, percent 7.7 10.5 11.7 13.1 17.3
Equity/assets ratio, percent 24.9 25.4 27.8 28.6 25.2
Net debt –6,470 –6,626 –5,719 –4,571 –4,042
Debt/equity ratio, multiple –0.8 –0.8 –0.7 –0.6 –0.6
Interest coverage ratio, multiple 2.9 4.3 7.6 7.5 5.9
Capital expenditures
Goodwill 14 79 –6 –23 1,446
Other intangible assets 2 47 –1 266 232
Buildings and land 57 –234 46 896 969
Machinery and equipment 847 1,014 496 278 2,827
Shares and participations –487 231 773 576 –222
Project and development properties 822 273 797 518 914
Orders
Orders received 38,743 37,986 34,764 30,393 32,269
Order backlog 28,056 28,378 27,063 24,487 24,233
Personnel
Average number of employees 14,825 14,560 13,541 13,633 11,945
Data per share
Earnings, SEK 2.47 3.26 4.11 4.52 6.56
after completed subscription and conversion 2.47 3.26 4.10 4.52 6.45
Cash flow, SEK 3.30 –3.71 –1.09 2.76 –7,59
after completed subscription and conversion 3.21 –3.60 –1.06 2.68 –7,20
Equity, SEK 27.07 26.94 26.76 25.98 22.86
after completed subscription and conversion 27.07 28.10 27.93 27.13 24.13
Share price at year-end, SEK 31.04 34.30 57.25 46.00 21.60
Ordinary dividend, SEK 3) 1.60 2.10 2.60 2.50 2.25
Number of shares at year-end, millions 295.0 295.0 286.7 291.1 278.7
after completed subscription and conversion 295.0 303.8 295.5 299.9 287.5
Average number of outstanding shares, millions 295.0 288.9 288.6 286.7 166.6
after completed subscription and conversion 303.0 297.7 297.4 295.4 175.5
1) From 1 January 2010 Peab applies IFRIC 15, Agreements for the Construction of Real Estate, in reporting. As a result of the new principle IAS 18, Revenue, will be applied to
Peab’s housing projects in Finland and Norway as well as Peab’s own single homes in Sweden. Revenue from these projects will be recognized first when the home is handed
over to the buyer. The comparable items for 2009 below have been recalculated according to the changed accounting principle. 2008 have not been recalculated.
2) Peab Industri was distributed to the shareholders in 2007. Peab Industri was repurchased in December 2008. Peab Industri is included in the balance sheet per 31 December
2008. Peab Industri is not included in the income statment for 2008.
3) For 2012, the Board of Directors’ proposal to the AGM.
94 PEAB ANNUAL REPORT 2012

Financial definitions
Capital employed
Total assets at year-end less non-interest-bearing
operating liabilities and provisions.
Cash flow per share
Cash flow per share calculated as the total of
the cash flow from current operations and cash
flow from investment activities divided by the
average number of outstanding shares during
the year.
Net debt/equity ratio
Interest-bearing net debt in relation to equity.
Direct return
Dividend as a percentage of the share price at
year-end.
Earnings per share
Profit for the period attributable to shareholders
in parent company divided by the average number
of outstanding shares during the period.
Equity/assets ratio
Equity as a percentage of total assets at yearend.
Equity per share
Equity attributable to shareholders in parent
company divided by the number of outstanding
shares at the end of the period.
Interest coverage ratio
Pre-tax profit items plus interest expenses in
relation to interest expenses.
Net assets (+) / Net debt (-)
Interest-bearing liabilities including provisions for
pensions less liquid and interest-bearing assets.
Operating margin
Operating profit as a percentage of net sales.
BRF KAJPLATSEN AND BRF HAMNPIREN
Färjestaden
Order backlog
The value of the remaining income in ongoing
production plus orders recieved yet to be produced.
Orders received
The sum of orders received during the year.
P/E ratio
Share price at year-end divided by earnings per
share.
Profit margin
Pre-tax profit items plus financial expenses as a
percentage of net sales.
Return on capital employed
Pre-tax profit items plus financial expenses as a
percentage of average capital employed.
Return on equity
Profit for the period attributable to shareholders
in parent company divided by average equity
attributable to shareholders in parent company.
Construction related
definitions
Contract amount
The amount stated in the contract for contract
work excluding VAT.
Fixed price
Contract to be carried out for a fixed price without
the contractor being able to alter it, unless
the client makes changes to the contract or
makes supplementary orders.
General contract
Contract work where the contractor carries out
construction and appoints and is responsible for
subcontractors on the basis of documentation
provided by the client.
DEFINITIONS
Peab Partnering
A type of collaboration which is similar to Peab’s
Trust-based contracts. The difference is that
partnering requires whole-hearted collaboration
by two or more equal partners during all phases
of the construction process. Partnering is suitable
for customers who want to be, can and are
actively involved from start to finish.
Peab’s Trust-based contracts
A type of collaboration between Peab and the
customer involving collaboration at an early
stage, shared goals and decisions and complete
openness in processes and systems such as
finance and purchasing. To start with, the customer
presents his/her requirements and then
Peab comes up with a proposal. Customers are
not as closely involved in the construction process
in Peab’s Trust-based contracts as they are in
Peab Partnering.
PGS
PGS stands for Peab Gemensamt System
(Peab’s General System) and refers to standardized
construction elements manufactured in
Peab’s own factories or by partners. PGS means
industrial construction from fabrication to final
mounting.
Project and development property
Holdings of unimproved land and decontamination
property for future development, real estate
with buildings for project development or
improvement and thereafter sales within Peab’s
normal operation cycle.
Project development
Finding project and development properties in
the market and developing these into complete
projects.
Total contract
Contract work where the contractor, in addition
to building, is also responsible for planning the
project.
KUGGEN
Gothenburg
PEAB ANNUAL REPORT 2012
95

ANNUAL GENERAL MEETING
Welcome to Peab’s Annual General Meeting
TIME AND LOCATION
The Annual General Meeting of Peab AB
will be held at 3 p.m. on Tuesday 14 May
2013, Grevieparken in Grevie, Sweden.
NOTIFICATION
Notification of participation in the Annual
General Meeting must be submitted at the
latest by 2 p.m. on Tuesday 7 May 2013.
Notification may be submitted by telephone
to +46 431 893 50, by mail to Peab Annual
General Meeting, c/o Euroclear Sweden
AB, Box 7841, SE-103 98 Stockholm, or via
the company’s website at www.peab.se. To
participate in the Annual General Meeting
shareholders must be registered in the
share register kept by Euroclear Sweden
ANNUAL GENERAL MEETING 2012
Grevie
96 PEAB ANNUAL REPORT 2012
AB by Tuesday 7 May 2013 at the latest.
Shareholders who have registered their
shares in trust must have registered such
shares in their own names at the latest by
this date. Shareholders should request
trustees to undertake such registering a
few days in advance.
DIVIDEND
The Board of Directors proposes to the
Annual General Meeting an ordinary dividend
of SEK 1.60 per share for 2012. The
proposed record day is Friday 17 May
2013. If the Annual General Meeting
approves the proposal submitted, dividends
will be distributed from Euroclear Sweden
AB on wednesday 22 May 2013.
Dividends as a percent of profit
1), 2)
after tax
%
70
60
50
40
30
20
10
Goal >50%
0
2009 2010 2010 2011 2012
1) According to legal reporting
2) For 2012, Board of Directors’ proposal

Financial information
Follow Peab quarter by quarter
When Peab publishes our quarterly reports we also present the financial
results for the previous quarter and a description of the current situation.
The link to the presentations can be found at www.Peab.com/About-Peab/
Financial-information/.
Analysts who follow Peab
Company Name Email
ABG Sundal Collier Fredric Cyon fredric.cyon@abgsc.se
Carnegie Tobias Kaj tobias.kaj@carnegie.se
Danske Bank Peter Trigarszky peter.trigarszky@danskebank.se
DNB Simen Mortensen simen.mortensen@dnb.no
Handelsbanken Albin Sandberg alsa06@handelsbanken.se
Nordea Jonas Andersson jonas.l.andersson@nordea.com
SEB Enskilda Stefan Andersson stefan.andersson@enskilda.se
Swedbank Niclas Höglund niclas.hoglund@swedbank.se
Head office
Peab AB
SE-260 92 Förslöv, (Margretetorpsvägen 84), Tel +46 431-890 00, Fax +46 431-45 17 00
Peab Sverige AB
Business area Construction
Box 808
169 29 Solna
(Gårdsvägen 6)
Sweden
Tel +46 8-623 68 00
Fax +46 8-623 20 60
Peab Anläggning AB
Business area Civil Engineering
260 92 Förslöv
(Margretetorpsvägen 84)
Sweden
Tel +46 431-890 00
Fax +46 431-45 15 08
Peab Industri AB
Business area Industry
401 80 Göteborg
(Anders Personsgatan 2)
Sweden
Tel +46 31-700 84 00
Fax +46 31-700 84 20
SHARE HOLDER INFORMATION AND ADDRESSES
At peab.com we continually provide current information on the company,
financial results and how our share is developing. Financial reports and
publications can be downloaded there as well. They can also be ordered
by contacting: Peab AB, SE-260 92 Förslöv, Sweden,
Tel +46 431-890 00, Fax +46 431-45 19 75.
Peab Fastighetsutveckling AB
Business area
Property Development
Box 808
169 28 Solna
(Gårdsvägen 6)
Sweden
Tel +46 8-623 68 00
Fax +46 8-623 20 60
Shareholder information
ANNUAL CALENDAR 2013
First Quarter Report 14 May
Annual General Meeting 14 May
Second Quarter Report 20 August
Third Quarter Report 14 November
Year-end Report 2013 13 February 2014
SHAREHOLDER CONTACT
Jesper Göransson, CEO and acting President
Tel +46 431-891 94,
jesper.goransson@peab.se
Gösta Sjöström, CIO
Tel +46 733-37 10 10,
gosta.sjostrom@peab.se
Peab AS
Postboks 93 Røa
NO-0701 Oslo
Norway
(Sørkedalsveien 150A, 0754 Oslo)
Tel +47 09 099
Fax +47 23 30 30 01
Peab Oy
Sentnerikuja 5
FIN-00440 Helsingfors
Finland
Tel +358 207 606 200
Fax +358 207 606 206
PEAB ANNUAL REPORT 2012
97

GOTHIA TOWERS
Gothenburg
peab.com
GOTHIA TOWERS
Gothenburg
Peab AB (publ) SE-260 92 Förslöv Tel +46 431-890 00 Fax +46 431-45 17 00 www.peab.com
www.grayling.se