Financial position and cash flow

Financial position

Total assets according to segment reporting, per December 31, 2021 were SEK 40,330 million (36,604). Equity amounted to SEK 14,656 million (13,251) which means the equity/assets ratio was 36.3 percent (36.2).

Interest-bearing net debt decreased during the year and amounted to SEK 2,404 million (3,873) at the end of December 2021. Net debt includes the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 958 million (1,055) 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 (1.4) on December 31, 2021.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 10,590 million at the end of the year 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 3,506 million at the end of the year 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 19 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 294 million (124). The investments refer primarily to investments in machines. During the year tangible and intangible fixed assets and investment property were net invested for SEK 1,453 million (732). The investments refer primarily to investments in machines and business combinations.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 1,178 million (net divestitures SEK 343 million) during the quarter. In December part of the property Stockholm Primus 1 on Lilla Essingen in Stockholm with development rights for more than 40,000 m2 GFA (gross area) and an underlying property value of SEK 1,167 million was acquired. Net investments in project and development properties totaled SEK 1,067 million (net divestitures SEK 1,917 million) during the year. Project and development properties include the unsold part of our own ongoing housing development projects. During the year the number of production-started housing projects increased while last year more homes were sold and completed than production-started.

Net debt

MSEK Dec 31
2021		 Dec 31
2020
Mkr 31 dec
2021		 31 dec
2020
Bank loans Banklån 1,285 2,135
Commercial papers Företagscertifikat 1,206 110
Bonds Obligationer 2,746 2,249
Financial leasing liabilities Finansiella leasingskulder 699 634
Project financing, unsold part of housing projects Projektfinansiering, osåld del av bostadsprojekt 958 1,055
Other interest-bearing liabilities Övriga räntebärande skulder 11 –
Interest-bearing receivables Räntebärande fordringar -1,550 -1,342
Liquid funds Likvida medel -2,951 -968
Net debt, segment reporting Nettoskuld, segmentsredovisning 2,404 3,873
Additional leasing liabilities according to IFRS 16 Tillkommande leasingskulder enligt IFRS 16 1,720 1,808
Project financing, sold part of housing projects Projektfinansiering, såld del av bostadsprojekt 6,391 4,001
Net debt, IFRS Nettoskuld, IFRS 10,515 9,682

Net debt and net debt/equity ratio

Cash flow

October – December 2021

Cash flow from current operations was SEK 2,452 million (2,010), of which cash flow from changes in working capital was SEK 779 million (865). In December part of the property Stockholm Primus 1 on Lilla Essingen in Stockholm with an underlying property value of SEK 1,167 million was acquired which had a negative effect on cash flow from working capital, while lower receivables had a positive effect. All the business areas contributed to the positive cash flow in the fourth quarter.

Cash flow from investment activities was SEK 13 million (-247). Investments during the quarter mainly consisted of machine investments in business area Industry along with repayment of loans in business area Project Development.

Cash flow before financing improved during the year and was SEK 2,465 million (1,763).

Cash flow from financing operations was SEK -318 million (-2,132).

January – December 2021

Cash flow from current operations amounted to SEK 4,807 million (6,749), of which cash flow from changes in working capital was SEK 874 million (2,886). 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 during the second half of the year. During 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. The number of production starts of our own housing developments increased in 2021. In December part of the property Stockholm Primus 1 on Lilla Essingen in Stockholm with an underlying property value of SEK 1,167 million was acquired which had a negative effect on cash flow from working capital. Cash flow from current operations included dividends of SEK 307 million (306) from partially owned companies.

Cash flow from investment activities was SEK -1,766 million (-3,970) and consisted mostly of machine investments, business combinations 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 3,041million (2,779).

Cash flow from financing operations amounted to SEK -1,082 million (-2,092), of which paid dividends were SEK -1,327 million (–).

Cash flow before financing

Housing project Midtveien

Moss/Rygge, Norway