Financial position and cash flow

Financial position

Total assets according to segment reporting per June 30, 2024 were SEK 46,840 million (46,886). Equity amounted to SEK 14,992 million (14,770), which means the equity/assets ratio was 32.0 percent (31.5).

Interest-bearing net debt amounted to SEK 9,585 million (11,717) per June 30, 2024. The decrease in net debt is due to less tied up working capital and lower investments in business area Industry. Net debt includes project financing of the unsold part of our own housing developments while they are in production. The unsold part was SEK 2,272 million (2,868). Interest-bearing receivables amounted to SEK 2,652 million (1,552). The increase is primarily due to a capital claim of SEK 1,067 million on Unibail-Rodamco-Westfield according to the arbitration decision announced on June 30, 2023. For details regarding the arbitration decision, see the section Risks and uncertainty factors and Annual and Sustainability Report 2023. The average interest rate in the loan portfolio, including derivatives, was 5.7 percent (5.0) on June 30, 2024.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 6,605 million at the end of the period compared to SEK 6,410 million on December 31, 2023.

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 2,534 million at the end of the period compared to SEK 2,428 million on December 31, 2023. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 518 million of contingent liabilities compared to SEK 328 million on December 31, 2023.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 108 million (623). During January-June 2024 tangible and intangible fixed assets were net invested for SEK 444 million (1,013). The investments mainly refer to investments in machines in business area Industry. The comparable period also includes investments in construction of production facilities for prefab operations in business area Industry.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 45 million (789) during the quarter. Net investments in project and development properties were SEK 931 million (1,483) during January-June 2024. The investments mainly refer to the acquisition of building rights in Nacka through the acquisition of Sickalön Bygg Invest AB in the first quarter.

Cash flow

Cash flow from current operations amounted to SEK 62 million (-1,886) in the second quarter. Cash flow from changes in working capital was SEK -732 million (-2,452). The negative cash flow was primarily generated in business area Industry where the paving season started in the second quarter, which entails building up working capital.

Cash flow from investment activities was SEK -157 million (-435). The investments consisted of machines and vehicles in business area Industry.

Cash flow before financing amounted to SEK -95 million (-2,321).

Cash flow from financing operations amounted to SEK 556 million (1,974). During the quarter dividends of SEK -431 million (-1,150) were paid to shareholders.

January – June 2024

Cash flow from current operations amounted to SEK -812 million (-2,587) during the period. Cash flow from changes in working capital was SEK -1,120 million (-3,005). The negative cash flow mainly refers to the acquisition of development rights in business area Project Development and building up working capital in business area Industry where the paving season started in the second quarter.

Cash flow from investment activities was SEK 499 million (-642). Cash flow has been positively affected by the sale of the shares in the partly owned company Tornet Bostadsproduktion in business area Project Development. Cash flow has been charged by investments in machines and vehicles in business area Industry.

Cash flow before financing amounted to SEK -313 million (-3,229).

Cash flow from financing operations amounted to SEK 553 million (3,085). During the second quarter dividends of SEK -431 million (-1,150) were paid to shareholders. Loans taken out amounted to SEK 982 million (4,235).