Financial position and cash flow

Financial position

Total assets per September 30, 2021 were SEK 39,358 million (39,473). Equity amounted to SEK 13,556 million (12,637) which means the equity/assets ratio was 34.4 percent compared to 32.0 percent at the end of the corresponding period last year.

Interest-bearing net debt at the end of September 2021 amounted to SEK 4,461 million (5,780). Net debt includes the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 947 million (1,404) and the reduction is due to a higher proportion of sold homes. The acquisition of paving and mineral aggregates operations in business area Industry on April 1, 2020 increased net debt by SEK 3,125 million at the time of the acquisition. After the acquisition positive cash flow effects have contributed to lower net debt. The average interest rate in the loan portfolio, including derivatives, was 1.4 percent (1.5) on September 30, 2021.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 8,203 million at the end of the period compared to SEK 8,822 million on December 31, 2020.

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 3,256 million at the end of the period compared to SEK 3,439 million on December 31, 2020. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 15 million of contingent liabilities compared to SEK 238 million on December 31, 2020.

Investments and divestments

During the quarter tangible and intangible fixed assets and investment property were net invested for SEK 551 million (229). The investments refer primarily to investments in machines and business combinations. During the period January – September tangible and intangible fixed assets and investment property were net invested for SEK 1,159 million (608). The investments refer primarily to investments in machines.

Net divestitures in project and development properties, which are recognized as inventory items, totaled SEK 300 million (net divestitures SEK 150 million) during the quarter. Net divestitures in project and development properties totaled SEK 111 million (net divestitures SEK 1,574 million) during the period January – September. Project and development properties include the unsold part of our own ongoing housing development projects. In the comparable period more homes were sold and completed than production started.

Net debt

MSEK Sep 30
2021		 Sep 30
2020		 Dec 31
2020
Mkr 30 sep
2021		 30 sep
2020		 31 dec
2020
Bank loans Banklån 1,347 3,700 2,135
Commercial papers Företagscertifikat 1,403 – 110
Bonds Obligationer 2,748 2,599 2,249
Financial leasing liabilities Finansiella leasingskulder 690 623 634
Project financing, unsold part of housing projects Projektfinansiering, osåld del av bostadsprojekt 947 1,404 1,055
Other interest-bearing liabilities Övriga räntebärande skulder – 123 –
Interest-bearing receivables Räntebärande fordringar -1,873 -1,322 -1,342
Liquid funds Likvida medel -801 -1,347 -968
Net debt, segment reporting Nettoskuld, segmentsredovisning 4,461 5,780 3,873
Additional leasing liabilities according to IFRS 16 Tillkommande leasingskulder enligt IFRS 16 1,774 1,206 1,808
Project financing, sold part of housing projects Projektfinansiering, såld del av bostadsprojekt 5,431 4,333 4,001
Annehem Fastigheter Annehem Fastigheter – 806 –
Net debt, IFRS Nettoskuld, IFRS 11,666 12,125 9,682

Net debt and net debt/equity ratio

Cash flow

July – September 2021

Cash flow from current operations was SEK 2,115 million (1,852), of which cash flow from changes in working capital was SEK 831 million (779). All the business areas contributed to the positive cash flow in the third quarter.

Cash flow from investment activities was SEK -1,334 million (-169). Investments during the quarter mainly consisted of machine investments in business area Industry, business combinations in business areas Civil Engineering and Industry and increased engagement in joint venture companies in business area Project Development.

Cash flow before financing was SEK 781 million (1,683).

Cash flow from financing operations was SEK -323 million (-1,204). During the third quarter a bond loan of SEK 1,000 million matured and has been repaid. Peab also issued green bonds during the quarter for a total value of SEK 1,500 million, of which SEK 1,000 million mature in three years and SEK 500 million mature in five years. The funds will be used to finance the conversion of Peab into a climate neutral business. For more information see the section Other information.

January – September 2021

Cash flow from current operations amounted to SEK 2,355 million (4,739), of which cash flow from changes in working capital was SEK 95 million (2,021). After acquisition of the paving and mineral aggregates operations business area Industry has a stronger seasonal pattern which has affected cash flow negatively in the first half year 2021 but has had a positive effect in the third quarter. During the corresponding period last year a lot of working capital was released primarily in Housing Development due to the fact that more housing projects were sold and turned over than were production started. Cash flow from current operations included dividends of SEK 111 million (297) from partially owned companies.

Cash flow from investment activities was SEK -1,779 million (-3,723) and consisted mostly of machine investments as well as increased engagement in joint venture companies in business area Project Development. The purchase price of the paving and mineral aggregates operations in Industry was included in the comparable period by SEK -3,125 million.

Cash flow before financing amounted to SEK 576 million (1,016).

Cash flow from financing operations amounted to SEK -764 million (40), of which paid dividends were SEK -1,327 million (–).

Cash flow before financing

Varv Bridge

Helsingborg