Financial position and cash flow

IFRS 16 Leases

IFRS 16, Leases replaced IAS 17, Leases as of 1 January 2019. When changing over Peab chose the changeover method in which comparable periods are not recalculated. Additional leases primarily comprise office and premise rents, leaseholds, land rentals and vehicles. Total assets and net debt were affected at changeover on 1 January 2019 by SEK 850 million. IFRS 16, Leases is applied in segment reporting. For further information see note 1.

Financial position

The equity/assets ratio on 31 March 2019 was 31.5 percent compared to 30.4 percent at year-end. Excluding additional IFRS 16, Leases the equity/asset ratio on 31 March 2019 was 32.2 percent. Interest-bearing net debt amounted to SEK 4,349 million compared to SEK 3,551 million at the end of 2018. Excluding additional IFRS 16, Leases net debt on 31 March 2019 was SEK 3,534 million. The average interest rate in the loan portfolio, including derivatives but excluding additional IFRS 16 Leases was 1.6 percent (2.3) on 31 March 2019.

Group liquid funds, including unutilized credit facilities, were SEK 6,226 million at the end of the period compared to SEK 5,846 million on 31 December 2018.

At the end of the period Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 10,215 million compared to SEK 10,302 million on 31 December 2018. SEK 7,376 million (7,935) of contingent liabilities was surety given for credit lines for tenant-owned apartments under production.

Investments and divestments

During the period SEK 492 million (435) was net invested in tangible and intangible fixed assets and investment property and consisted primarily of office building construction and investments in machinery.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 650 million (97) during the period. Most of the investments refer to ongoing housing projects in Norway and Finland and our own developed rental projects in Sweden.

Cash flow

Cash flow from current operations was SEK 642 million (-246), of which cash flow from changes in working capital was SEK 181 million (-350). The change in working capital has been affected positively by a reduction in accounts receivable but negatively by in part construction of housing projects in Finland and Norway and our own developed rental projects in Project Development in Sweden.

Cash flow from investment activities was SEK -83 million (-144).

Cash flow before financing amounted to SEK 559 million (-390).

Cash flow from financing operations amounted to SEK -788 million (62) and refers to amortized loan liabilities.