Financial position and cash flow
Financial position
Total assets per September 30, 2020 were SEK 39,473 million (39,747), of which approximately SEK 5,000 million is related to the acquired paving and mineral aggregates operations. Annehem Fastigheter were included by around SEK 2,000 million at the same point in time last year. Equity amounted to SEK 12,637 million (11,992) which means the debt/equity ratio was 32.0 percent compared to 30.2 percent at the end of the corresponding period last year. Interest-bearing net debt was SEK 5,780 million compared to SEK 8,474 million at the same time last year. Net debt includes SEK 1,404 million (3,208) which is the unsold part of our own developed housing projects. As of the beginning of 2020 Annehem is no longer part of segment reporting which has affected net debt positively by SEK 806 million. Net debt increased by SEK 3,184 million in conjuncture with the acquisition of the paving and mineral aggregates operations. The average interest rate in the loan portfolio, including derivatives, was 1.5 percent (1.4) on September 30, 2020.
Group liquid funds according to IFRS, including unutilized credit facilities, were SEK 7,842 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 3,294 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 544 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 229 million (217). The investments refer primarily to investments in machines. During the period January-September tangible and intangible fixed assets and investment property were net invested for SEK 608 million (1,237). 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 Fastigheter during 2020.
Net divestitures in project and development properties, which are recognized as inventory items, totaled SEK 150 million (net divestitures SEK 117 million) during the quarter. Net divestitures in project and investment properties totaled SEK 1,574 million (net divestitures SEK 317 million) during the period January-September. Project and development properties include the unsold part of ongoing housing projects. During the period this portion has contracted due to more homes sold than has been started up.
Net debt
| MSEK | Sep 30 2020 | Sep 30 2019 | Dec 31 2019 | |
| Mkr | 30 sep 2020 | 30 sep 2019 | 31 dec 2019 | |
| Bank loans | Banklån | 3,700 | 2,435 | 1,864 |
| Commercial papers | Företagscertifikat | – | 1,519 | 1,359 |
| Bonds | Obligationer | 2,599 | 2,248 | 2,248 |
| Financial leasing liabilities | Finansiella leasingskulder | 623 | 597 | 579 |
| Project financing, unsold part of housing projects | Projektfinansiering, osåld del av bostadsprojekt | 1,404 | 3,208 | 3,088 |
| Other interest-bearing liabilities | Övriga räntebärande skulder | 123 | – | – |
| Interest-bearing receivables | Räntebärande fordringar | -1,322 | -1,272 | -1,230 |
| Liquid funds | Likvida medel | -1,347 | -261 | -373 |
| Net debt, segment reporting | Nettoskuld, segmentsredovisning | 5,780 | 8,474 | 7,535 |
| Interest-bearing receivables | Räntebärande fordringar | – | 77 | – |
| Additional leasing liabilities according to IFRS 16 | Tillkommande leasingskulder enligt IFRS 16 | 1,206 | 773 | 764 |
| Project financing, sold part of housing projects | Projektfinansiering, såld del av bostadsprojekt | 4,333 | 4,625 | 4,875 |
| Annehem Fastigheter | Annehem Fastigheter | 806 | – | – |
| Net debt, IFRS | Nettoskuld, IFRS | 12,125 | 13,949 | 13,174 |
Net debt and debt/equity ratio
Litsbron, Indalsälven
Östersund
Cash flow
July – September 2020
During the quarter cash flow from current operations improved to SEK 1,852 million (-173), of which cash flow from changes in working capital was SEK 779 million (-877). All business areas presented improved cash flows from changes in working capital compared to the same quarter last year.
Cash flow from investment activities was SEK -169 million (-6) and consisted mostly of machine investments.
Cash flow before financing improved to SEK 1,683 million (-179).
January – September 2020
Cash flow from current operations was strong during the period and amounted to SEK 4,739 million (364), of which cash flow from changes in working capital was SEK 2,021 million (-1,487). All business areas presented improved cash flows from changes in working capital. A large part of the positive cash flows from changes in working capital comes from having sold more of our developed homes than production started during the period.
Cash flow from investment activities was SEK -3,723 million (-434) where the acquisition price of the paving and mineral aggregates operations was included by SEK -3,184 million. Most of the other investments during the period consisted of machine investments.
Cash flow before financing improved and amounted to SEK 1,016 million (-70).
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.