Financial position and cash flow

Financial position

Total assets according to segment reporting, per March 31, 2022 were SEK 40,309 million (36,227). Equity amounted to SEK 14,812 million (13,408) which means the equity/assets ratio was 36.7 percent (37.0).

Interest-bearing net debt amounted to SEK 2,991 million (4,045) at the end of March 2022. Net debt includes project financing of the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 1,573 million (968) and the increase is due to more housing projects in production compared to the same period last year. The average interest rate in the loan portfolio, including derivatives, was 1.5 percent (1.5) on March 31, 2022.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 10,808 million at the end of the period compared to SEK 10,590 million on December 31, 2021.

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 2,912 million at the end of the period compared to SEK 3,229 million on December 31, 2021. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 72 million of contingent liabilities compared to SEK 19 million on December 31, 2021.

Investments and divestments

During the quarter tangible and intangible fixed assets and investment property were net invested for SEK 337 million (481). The investments refer primarily to investments in machines.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 267 million (173) during the quarter.

Cash flow

Cash flow from current operations was SEK -330 million (184), of which cash flow from changes in working capital was SEK -290 million (103). The negative cash flow from changes in working capital referred to higher investments in project and development property in business area Project Development as well as larger stores in business area Industry.

Cash flow from investment activities was SEK 7 million (-292). Investments during the quarter mainly consisted of machine investments in business area Industry along with repayment of loans in business area Project Development.

Cash flow before financing was SEK -323 million (-108).