Financial position and cash flow

Reclassication of property

After a revision of Peab’s property portfolio it was decided that some property previously reported as project and development property, i.e. inventory properties, will instead be classified as operations property or investment property, in the case where there is no plan to divest the property and it is expected to remain in the Group for the foreseeable future. For this reason, as of 1 January 2017 properties for a total recorded value of SEK 619 million have been reclassified as operations property and properties for a total value of SEK 629 million have been reclassified as investment property. The reclassification of these properties is forward-looking and therefore no comparable figures have been recalculated.

Financial position

The equity/assets ratio on 31 December 2017 was 32.1 percent compared to 29.7 percent at the previous year-end. Interest-bearing net debt amounted to SEK 1,216 million compared to SEK 1,862 million at the end of 2016. The average interest rate in the loan portfolio, including interest derivatives, was 2.6 percent (2.6) on 31 December 2017.

Group liquid funds, including unutilized credit facilities, were SEK 5,145 million at the end of the year compared to SEK 6,062 million on 31 December 2016.

At the end of the year Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 10,463 million (6,903). SEK 7,740 million (4,498) of contingent liabilities was surety given for credit lines for tenant-owned apartments under production.

Investments and divestments

During the fourth quarter SEK 691 million (288) was net invested in tangible and intangible fixed assets. Investments during the quarter were primarily investments in machines and property. During 2017 SEK 1,912 million (1,449) was net invested in tangible and intangible fixed assets. Included in this amount was SEK 154 million (310) in net investments from acquisitions. Like last year most investments refer to investments in machines and acquisitions in business areas Industry and Civil Engineering. Major investments have been made in business area Industry during the year, both to increase capacity and for replacements.

Net divestments in project and development properties, which are recognized as inventory items, totaled SEK 88 million (91) during the fourth quarter. Net investments in project and development properties totaled SEK 702 million (324) during 2017, of which the acquisition of development rights at Kvarnholmen in Nacka amounted to around SEK 600 million. During the first quarter property in Ulriksdal, Solna was divested. The partial sales of property in Hyllie was carried out in the second quarter 2016.

Cash flow

October – December 2017

Cash flow from current operations during the fourth quarter amounted to SEK 1,202 million (2,134), of which cash flow from changes in working capital was SEK 189 million (1,113).

Cash flow from investment activities was SEK 306 million (-110) and consisted of the sales of shares in Lemminkäinen Oyj and in partially owned companies, repayment of loans from partially owned companies and investments in machines.

Cash flow before financing during the fourth quarter amounted to SEK 1,508 million (2,024).

Cash flow from financing operations amounted to SEK -1,177 million (-1,316) and refers to the repayment of loans.

January – December 2017

Cash flow from current operations amounted to SEK 2,839 million (3,455), of which paid tax was SEK -651 million (-19). Cash flow from changes in working capital was SEK 57 million (552). Working capital included the acquisition of development rights at Kvarnholmen in Nacka for around SEK -600 million.

Cash flow from investment activities was SEK -544 million (-804). Cash flow from investment activities included the sales of fixed assets of SEK 1,577 million (865) which consisted of amortization of loans from partially owned companies, the sales of shares in Lemminkäinen Oyj and the sales of shares in partially owned companies. The cash flow was primarily used for investments in machines.

Cash flow before financing amounted to SEK 2,295 million compared to SEK 2,651 million for the last year. During the first quarter the transactions carried out regarding Arenastaden, Solna had a positive effect of around SEK 835 million. The comparable period included partial sales of property in Hyllie of SEK 508 million.

Cash flow from financing operations amounted to SEK -2,750 million (-2,613) of which SEK -1,062 million (-767) was paid dividends and SEK -1,688 million (-1,846) was amortization of loans.