Financial position and cash flow
Financial position
Total assets per December 31, 2020 were SEK 36,604 million (38,362), of which approximately SEK 4,000 million is related to the acquired paving and mineral aggregates operations. Annehem Fastigheter were included by SEK 2,077 million at the same point in time last year. Equity amounted to SEK 13,251 million (12,479) which means the equity/assets ratio was 36.2 percent compared to 32.5 percent at the end of last year. Interest-bearing net debt decreased during the year and amounted to SEK 3,873 million compared to SEK 7,535 million at the same time last year. Net debt includes the unsold part of our own developed housing projects as long as they are in production. The unsold part at the end of the year was SEK 1,055 million (3,088). In addition, the positive effects of the distribution of Annehem Fastigheter have reduced net debt. The purchase price of the paving and mineral aggregates operations increased net debt by SEK 3,184 million on April 1, 2020. Since the acquisition took place at the start of the season positive cash flow effects have thereafter contributed to lowering net debt. The average interest rate in the loan portfolio, including derivatives, was 1.4 percent (1.5) on December 31, 2020.
Group liquid funds according to IFRS, including unutilized credit facilities, were SEK 8,822 million at the end of the year 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 3,481 million at the end of the year 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 238 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 124 million (317). The investments refer primarily to investments in machines. During the year tangible and intangible fixed assets and investment property were net invested for SEK 732 million (1,554). 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 343 million (net divestitures SEK 117 million) during the fourth quarter. Net divestitures in project and investment properties totaled SEK 1,917 million (net divestitures SEK 434 million) during the year 2020. Project and development properties include the unsold part of ongoing own developed housing projects. During the year this portion has contracted due to more homes sold than has been started up.
Net debt
| MSEK | Dec 31 2020 | Dec 31 2019 | |
| Mkr | 31 dec 2020 | 31 dec 2019 | |
| Bank loans | Banklån | 2,135 | 1,864 |
| Commercial papers | Företagscertifikat | 110 | 1,359 |
| Bonds | Obligationer | 2,249 | 2,248 |
| Financial leasing liabilities | Finansiella leasingskulder | 634 | 579 |
| Project financing, unsold part of housing projects | Projektfinansiering, osåld del av bostadsprojekt | 1,055 | 3,088 |
| Interest-bearing receivables | Räntebärande fordringar | -1,342 | -1,230 |
| Liquid funds | Likvida medel | -968 | -373 |
| Net debt, segment reporting | Nettoskuld, segmentsredovisning | 3,873 | 7,535 |
| Additional leasing liabilities according to IFRS 16 | Tillkommande leasingskulder enligt IFRS 16 | 1,808 | 764 |
| Project financing, sold part of housing projects | Projektfinansiering, såld del av bostadsprojekt | 4,001 | 4,875 |
| Net debt, IFRS | Nettoskuld, IFRS | 9,682 | 13,174 |
Net debt and debt/equity ratio
Highway E20
Alingsås
Cash flow
October – December 2020
During the quarter cash flow from current operations improved to SEK 2,010 million (1,264), of which cash flow from changes in working capital was SEK 865 million (60). Business areas Industry and Project Development reported improved cash flows from changes in working capital compared to the corresponding quarter last year.
Cash flow from investment activities was SEK -247 million (-169) and consisted mostly of machine investments.
Cash flow before financing improved to SEK 1,763 million (1,095).
January – December 2020
Cash flow from current operations was strong during the year and amounted to SEK 6,749 million (1,628), of which cash flow from changes in working capital was SEK 2,886 million (-1,427). All business areas reported improved cash flows from changes in working capital except Construction where cash flow was slightly lower compared to 2019. 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 year.
Cash flow from investment activities was SEK -3,970 million (-603) 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 year consisted of machine investments.
Cash flow before financing improved and amounted to SEK 2,779 million (1,025).
Cash flow before financing
Financial goals
Goal > 25%
Goal > 20%
Goal > 50% of the profit for the year
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.