Financial position and cash flow
Financial position
Total assets per June 30, 2020 were SEK 41,244 million (40,584), of which approximately SEK 4,800 million is related to the acquired paving and mineral aggregates operations. Annehem Fastigheter were included by around SEK 1,900 million at the same point in time last year. Equity amounted to SEK 12,852 million (11,386) which means the debt/equity ratio was 31.2 percent compared to 28.1 percent at the end of the corresponding period last year. Interest-bearing net debt was SEK 6,614 million compared to SEK 7,893 million at the same time last year. Net debt includes the unsold part of housing projects. As of the beginning of 2020 Annehem is no longer part of segment reporting which has affected net debt positively by SEK 1,721 million. Net debt increased by SEK 3,125 million in conjuncture with the acquisition of the paving and mineral aggregates operations from YIT. Not including this effects, net debt has contracted by SEK 2,325 million since year-end. The average interest rate in the loan portfolio, including derivatives, was 1.4 percent (1.5) on June 30, 2020.
Group liquid funds according to IFRS, including unutilized credit facilities, were SEK 6,369 million at the end of the period 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 3,348 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 591 million of contingent liabilities compared to SEK 433 million on December 31, 2019.
Investments and divestments
During the quarter tangible and intangible fixed assets and investment property were net invested for SEK 188 million (562). The investments refer primarily to investments in machines. During the period January-June tangible and intangible fixed assets and investment property were net invested for SEK 379 million (1,020). In the comparable period a large part of the investments referred to building up properties on our own balance sheet and these have been transferred to Annehem during 2020.
Net divestitures in project and development properties, which are recognized as inventory items, totaled SEK 907 million (net divestitures SEK 16 million) during the quarter. Net divestitures in project and investment properties totaled SEK 1,424 million (net divestitures SEK 200 million) during the period January-June 2020. Project and development properties include the unsold part of ongoing housing projects. During the first half-year this portion has contracted due to more homes sold than has been started up.
Net debt
| MSEK | Jun 30 2020 | Jun 30 2019 | Dec 31 2019 | |
| Mkr | 30 jun 2020 | 30 jun 2019 | 31 dec 2019 | |
| Bank loans | Banklån | 4,321 | 3,700 | 1,864 |
| Commercial papers | Företagscertifikat | 290 | 749 | 1,359 |
| Bonds | Obligationer | 2,598 | 2,248 | 2,248 |
| Financial leasing liabilities | Finansiella leasingskulder | 627 | 598 | 579 |
| Project financing, unsold part of housing projects | Projektfinansiering, osåld del av bostadsprojekt | 1,702 | 3,280 | 3,088 |
| Interest-bearing receivables | Räntebärande fordringar | -2,053 | -1,554 | -1,230 |
| Liquid funds | Likvida medel | -871 | -1,128 | -373 |
| Net debt, segment reporting | Nettoskuld, segmentsredovisning | 6,614 | 7,893 | 7,535 |
| Interest-bearing receivables | Räntebärande fordringar | 12 | 155 | – |
| Additional leasing liabilities according to IFRS 16 | Tillkommande leasingskulder enligt IFRS 16 | 933 | 827 | 764 |
| Project financing, sold part of housing projects | Projektfinansiering, såld del av bostadsprojekt | 5,328 | 4,198 | 4,875 |
| Annehem Fastigheter | Annehem Fastigheter | 1,721 | – | – |
| Net debt, IFRS | Nettoskuld, IFRS | 14,608 | 13,073 | 13,174 |
Net debt and debt/equity ratio
Closed Loop Plant, Högbytorp
Stockholm
April – June 2020
Cash flow from current operations was SEK 1,090 million (-642), of which cash flow from changes in working capital was SEK 102 million (-1,437). Capital tied up in accounts receivable is lower compared to last year.
Cash flow from investment activities was SEK -3,354 million (-345). Cash flow for the acquisition of YIT’s paving and mineral aggregates operations amounted to SEK -3,125 million.
Cash flow before financing was SEK -2,264 million (-987).
January – June 2020
Cash flow from current operations was strong during the first half-year and amounted to SEK 2,887 million (697), of which cash flow from changes in working capital was SEK 1,242 million (-610). The change in working capital is mainly explained by a positive cash flow due to more homes sold than has been started up. Capital tied up in accounts receivable is lower compared to last year.
Cash flow from investment activities was SEK -3,554 million (-428) where the acquisition of paving and mineral aggregates operations was included by SEK -3,125 million.
Cash flow before financing amounted to SEK -667 million (269).
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.