Financial position and cash flow

Financial position

Total assets per March 31, 2021 were SEK 36,227 million (36,589). Equity amounted to SEK 13,408 million (12,349) which means the equity/assets ratio was 37.0 percent compared to 33.8 percent at the end of the corresponding period last year. Interest-bearing net debt at the end of March 2021 amounted to SEK 4,045 million (4,186). During last year interest-bearing receivables of SEK 1,150 million from Annehem Fastigheter were included, which reduced net debt in segment reporting. Net debt includes the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 968 million (2,383) and the reduction is due to fewer homes in ongoing production and a higher proportion of sold homes. The average interest rate in the loan portfolio, including derivatives, was 1.5 percent (1.6) on March 31, 2021.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 8,569 million at the end of the period compared to SEK 8,822 million on December 31, 2020.

As a consequence of Peab consolidating Swedish tenant-​owner associations per January 1, 2020 according to IFRS, surety for tenant-​owner associations under production is not reported. When homebuyers take possession of their apartments and the tenant-​owner association is no longer consolidated in Peab’s accounts, Peab then reports the part of surety that covers unsold homes. Peab has a guarantee obligation to acquire unsold homes six months after completion. Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 3,336 million at the end of the period compared to SEK 3,439 million on December 31, 2020. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 70 million of contingent liabilities compared to SEK 238 million on December 31, 2020.

Investments and divestments

During the quarter tangible and intangible fixed assets and investment property were net invested for SEK 481 million (191). The investments refer primarily to investments in machines.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 173 million (net divestitures SEK 517 million) during the period.

Cash flow

Cash flow from current operations amounted to SEK 184 million (1,797), of which cash flow from changes in working capital was SEK 103 million (1,140). After acquisition of the paving and mineral aggregates operations business area Industry has a stronger seasonal pattern which has affected cash flow negatively in the first quarter 2021. During the first quarter last year working capital became available in primarily Housing Development as a result of fewer housing projects in production. Cash flow from current operations included dividends of SEK 97 million (272) from partially owned companies.

Cash flow from investment activities was SEK -292 million (-200) and consisted mostly of machine investments.

Cash flow before financing was SEK -108 million (1,597).