Financial position and cash flow

Financial position

Total assets per June 30, 2022 were SEK 42,260 million (37,685). Equity amounted to SEK 13,868 million (12,654) which means the equity/assets ratio was 32.8 percent compared to 33.6 percent at the end of the corresponding period last year.

Interest-bearing net debt at the end of June 2022 amounted to SEK 6,333 million (5,424). Net debt includes project financing for the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 1,705 million (968) and the increase is explained by more housing projects in production compared with the same period last year. During the second quarter SEK 1,475 million (1,327) in paid dividends increased net debt. The average interest rate in the loan portfolio, including derivatives, was 1.7 percent (1.4) on June 30, 2022.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 7,688 million at the end of the period compared to SEK 7,060 million on June 30, 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 2,800 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 65 million of contingent liabilities compared to SEK 19 million on December 31, 2021.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 480 million (127). The investments refer primarily to investments in machines. During the period January-June 2022 tangible and intangible fixed assets were net invested for SEK 817 million (608). The investments refer primarily to investments in machines.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 422 million (16) during the quarter. Net investments in project and development properties totaled SEK 689 million (189) during the period January-June 2022. Project and development properties include the unsold part of our own ongoing housing development projects.

Net debt

MSEK Jun 30
2022		 Jun 30
2021		 Dec 31
2021
Mkr 30 jun
2022		 30 jun
2021		 31 dec
2021
Bank loans Banklån 3,466 1,687 1,285
Commercial papers Företagscertifikat 309 1,697 1,206
Bonds Obligationer 2,747 2,249 2,746
Financial leasing liabilities Finansiella leasingskulder 699 612 699
Project financing, unsold part of housing projects Projektfinansiering, osåld del av bostadsprojekt 1,705 968 958
Other interest-bearing liabilities Övriga räntebärande skulder 34 – 11
Interest-bearing receivables Räntebärande fordringar -1,308 -1,453 -1,550
Liquid funds Likvida medel -1,319 -336 -2,951
Net debt, segment reporting Nettoskuld, segmentsredovisning 6,333 5,424 2,404
Additional leasing liabilities according to IFRS 16 Tillkommande leasingskulder enligt IFRS 16 1,618 1,796 1,720
Project financing, sold part of housing projects Projektfinansiering, såld del av bostadsprojekt 7,918 5,146 6,391
Net debt, IFRS Nettoskuld, IFRS 15,869 12,366 10,515

Net debt and net debt/equity ratio

Bridge Nyforsviken

Tyresö

Cash flow

April – June 2022

Cash flow from current operations was SEK -1,189 million (56), of which cash flow from changes in working capital was SEK -2,145 million (-839). The negative cash flow from changes in working capital refers primarily to business area Industry where the season started during the second quarter, which entails accumulating working capital. In addition, the level of tied up working capital has increased in construction contract operations Construction and Civil Engineering during the quarter.

Cash flow from investment activities was SEK -351 million (-153). Investments during the quarter consisted of machine investments in business area Industry.

Cash flow before financing was SEK -1,540 million (-97).

Cash flow from financing operations amounted to SEK -89 million (-398), of which paid dividends were SEK -1,475 million (-1,327) and repurchase of own shares of SEK -125 million (–).

January – June 2022

Cash flow from current operations amounted to SEK -1,519 million (240), of which cash flow from changes in working capital was SEK -2,435 million (-736). The negative cash flow from changes in working capital refers primarily to business area Industry where the season started during the second quarter, which entails accumulating working capital. In addition, the level of tied up working capital has increased in construction contract operations Construction and Civil Engineering during the period. Cash flow from current operations included dividends from partially owned companies of SEK 20 million (108).

Cash flow from investment activities was SEK -344 million (-445). Investments during the period consisted of machine investments in business area Industry and repayment of loans in Project Development.

Cash flow before financing was SEK -1,863 million (-205).

Cash flow from financing operations amounted to SEK 218 million (-441), of which paid dividends were SEK -1,475 million (-1,327) and repurchase of own shares of SEK -125 million (–).

Cash flow before financing

E12 Klockarbäcken

Umeå