Financial position and cash flow

Financial position

Total assets according to segment reporting per June 30, 2023 were SEK 46,886 million (42,260). Equity amounted to SEK 14,770 million (13,868), which means the equity/assets ratio was 31.5 percent (32.8).

Interest-bearing net debt amounted to SEK 11,717 million (6,333) on June 30, 2023. The increase in net debt refers to more tied up working capital mainly in business areas Project Development and Industry, and higher investments in machines and production facilities. Net debt includes project financing of the unsold part of our own housing developments as long as they are in production. The unsold part was SEK 2,868 million (1,705) and the increase is due to an increase in capital tied up in unsold homes in ongoing production compared to the same period last year. During the second quarter, paid dividends of SEK 1,150 million (1,475) raised the net debt. The average interest rate in the loan portfolio, including derivatives, was 5.0 percent (1.7) on June 30, 2023.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 5,014 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 2,644 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 100 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 623 million (480). The investments refer mainly to investments in machines as well as construction of production facilities for concrete elements in business area Industry. During January-June 2023 tangible and intangible fixed assets were net invested for SEK 1,013 million (817).

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 789 million (422) during the quarter. The investments refer mainly to development rights, construction of rental apartment projects as well as a more tied-up capital of unsold apartments in our own housing develpments. Net investments in project and development properties, which are recognized as inventory items, totaled SEK 1,483 million (689) during January-June 2023.