Financial position and cash flow

Financial position

Total assets according to segment reporting per March 31, 2023 were SEK 42,713 million (40,309). Equity amounted to SEK 14,687 million (14,812), which means the equity/assets ratio was 34.4 percent (36.7).

Interest-bearing net debt amounted to SEK 7,984 million (2,991) at the end of March 2023. The increased net debt is explained by more tied up working capital and increased investments in machines and operations. 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 2,612 million (1,573) and the increase is due to lower portion of sold homes in ongoing production compared to the same period last year. The average interest rate in the loan portfolio, including derivatives, was 4.2 percent (1.5) on March 31, 2023.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 7,409 million at the end of the period compared to SEK 7,640 million on December 31, 2022.

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 2,828 million at the end of the period compared to SEK 2,801 million on December 31, 2022. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 147 million of contingent liabilities compared to SEK 97 million on December 31, 2022.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 390 million (337). The investments refer mainly to investments in machines in the business area Industry.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 694 million (267) during the quarter. The investments refer mainly to rental apartment projects under construction and more unsold apartments.

Cash flow

Cash flow from current operations was SEK -701 million (-330), of which cash flow from changes in working capital was SEK -553 million (-290). The negative cash flow from changes in working capital refer mainly to business area Project Development and are due to higher investments in project and development property in the form of rental apartment projects under construction and more unsold apartments.

Cash flow from investment activities was SEK -207 million (7). Investments during the quarter mainly consisted of machine investments in business area Industry.

Cash flow before financing was SEK -908 million (-323).