Financial position and cash flow
Financial position
Total assets per March 31, 2020 were SEK 36,589 (37,695), of which equity amounted to SEK 12,349 million (11,920). This means the debt /equity ratio was 33.8 percent compared to 31.6 percent at the end of the corresponding period last year. Interest-bearing net debt was SEK 4,186 million compared to SEK 5,323 million at the same time last year. Net debt includes the unsold part of housing projects. The reduction in net debt is primarily due to an improved cash flow stemming from lower working capital. In addition, dividends from partially owned companies have had a positive effect. The average interest rate in our loan portfolio, including interest derivatives, was 1.6 percent (1.6) on March 31, 2020.
Group liquid funds according to IFRS, including unutilized credit facilities, were at the end of the period SEK 6,849 million compared to SEK 5,013 million on December 31, 2019.
As a consequence of Peab consolidating Swedish tenant-owned housing associations per January 1, 2020 according to IFRS, surety for tenant-owned housing associations under production is not reported. When homebuyers take possession of their apartments and the tenant-owned housing association is no longer consolidated in Peab’s accounts, Peab then reports the part of surety for unsold homes. This is because Peab has a guarantee obligation to acquire unsold homes six months after completion. Comparative figures for 2019 have been translated. Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 3,458 million at the end of the period compared to SEK 3,347 million on December 31, 2019. Surety for credit lines in tenant-owned housing associations regarding the unsold part after deconsolidation made up SEK 568 million of contingent liabilities compared to SEK 433 million on December 31, 2019.
Investments and divestitures
During the first quarter SEK 191 million (458) was net invested in tangible and intangible fixed assets and investment property.
Net divestitures in project and development properties, which are recognized as inventory items, totaled SEK 517 million (net divestitures SEK 184 million) during the period.
Net debt
| MSEK | 31 Mar 2020 | 31 Mar 2019 | Dec 31 2019 | |
| Mkr | 31 mar 2020 | 31 mar 2019 | 31 dec 2019 | |
| Bank loans | Banklån | 1,077 | 1,798 | 1,864 |
| Commercial papers | Företagscertifikat | 579 | 130 | 1,359 |
| Bonds | Obligationer | 2,998 | 2,248 | 2,248 |
| Financial leasing liabilities | Finansiella leasingskulder | 541 | 587 | 579 |
| Project financing, unsold part of housing projects | Projektfinansiering, osåld del av bostadsprojekt | 2,383 | 3,423 | 3,088 |
| Interest-bearing receivables | Räntebärande fordringar | -2,415 | -1,707 | -1,230 |
| Liquid funds | Likvida medel | -977 | -1,156 | -373 |
| Net debt | Nettoskuld | 4,186 | 5,323 | 7,535 |
| Interest-bearing receivables | Räntebärande fordringar | 24 | 184 | – |
| Additional leasing liabilities according to IFRS 16 | Tillkommande leasingskulder enligt IFRS 16 | 638 | 815 | 764 |
| Project financing, sold part of housing projects | Projektfinansiering, såld del av bostadsprojekt | 5,223 | 5,079 | 4,875 |
| Annehem Fastigheter | Annehem Fastigheter | 1,919 | – | – |
| Net debt, IFRS | Nettoskuld, IFRS | 11,990 | 11,401 | 13,174 |
Net debt and debt/equity ratio
Road 70
Uppsala
Cash flow
Cash flow from current operations was SEK 1,797 million (1,339), of which cash flow from changes in working capital was SEK 1,140 million (827). Cash flow from current operations included dividends of SEK 272 million (7) from partially owned companies. The change in working capital is largely due to diminished accounts receivable.
Cash flow from investment activities was SEK -200 million (-83) and mostly consisted of machinery investments. The first quarter of last year included repayment of loans from partially owned companies.
Cash flow before financing amounted to SEK 1,597 million (1,256).
Cash flow from investment operations amounted to SEK -943 million (-1,493) and refers to repayment of loans.
Cash flow before financing
Financial goals
Goal > 25%
Goal > 20%
Goal > 50%
Years 2011-2018 are not translated according to the changed accounting principles. For more information, see the section Net sales and profit, as well as note 1.