Financial position and cash flow

Financial position

Total assets per December 31, 2022 were SEK 43,220 million (40,330). Equity amounted to SEK 14,978 million (14,656) which means the equity/assets ratio was 34.7 percent compared to 36.3 percent at the end of last year.

Interest-bearing net debt at the end of December 2022 amounted to SEK 6,899 million (2,404). Net debt includes project financing for the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 2,209 million (958) and the increase is due to a high production rate but a lower level of sales in ongoing production compared to the same time last year. Net debt has also been affected by repurchasing own shares for SEK 500 million (–). The average interest rate in the loan portfolio, including derivatives, was 3.3 percent (1.4) on December 31, 2022.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 7,640 million at the end of the year compared to SEK 10,590 million on December 31, 2021.

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 2,801 million at the end of the year compared to SEK 3,229 million on December 31, 2021. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 97 million of contingent liabilities compared to SEK 19 million on December 31, 2021.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 830 million (294). The investments refer primarily to investments in machines. During 2022 tangible and intangible fixed assets were net invested for SEK 2,152 million (1,453). The investments refer primarily to investments in machines.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 1,423 million (1,178) during the quarter. Net investments in project and development properties totaled SEK 2,268 million (1,067) during 2022. Project and development properties include the unsold part of our own ongoing housing development projects.

Net debt

MSEK Dec 31
2022		 Dec 31
2021
Mkr 31 dec
2022		 31 dec
2021
Bank loans Banklån 4,075 1,285
Commercial papers Företagscertifikat 167 1,206
Bonds Obligationer 2,747 2,746
Financial leasing liabilities Finansiella leasingskulder 762 699
Project financing, unsold part of housing projects Projektfinansiering, osåld del av bostadsprojekt 2,209 958
Other interest-bearing liabilities Övriga räntebärande skulder 62 11
Interest-bearing receivables Räntebärande fordringar -1,617 -1,550
Liquid funds Likvida medel -1,506 -2,951
Net debt, segment reporting Nettoskuld, segmentsredovisning 6,899 2,404
Additional leasing liabilities according to IFRS 16 Tillkommande leasingskulder enligt IFRS 16 1,749 1,720
Project financing, sold part of housing projects Projektfinansiering, såld del av bostadsprojekt 8,033 6,391
Net debt, IFRS Nettoskuld, IFRS 16,681 10,515

Net debt and net debt/equity ratio

LINK Business Center

Linköping

Cash flow

October – December 2022

Cash flow from current operations was SEK -21 million (2,452), of which cash flow from changes in working capital was SEK -1,226 million (779). The negative change in working capital derives from all the business areas although a large part is related to business area Project Development through investments in project and development property. Dividends of SEK 165 million (196) from partially owned companies were included in cash flow from current operations.

Cash flow from investment activities was SEK -876 million (13). Investments mainly consisted of machines and vehicles in business area Industry as well as business combinations in business area Civil Engineering. In addition, business area Project Development increased its exposure and lending to joint ventures. Besides machine investments in Industry, last year included business combinations in business area Civil Engineering and increased exposure to joint ventures in Project Development.

Cash flow before financing was SEK -897 million (2,465).

Cash flow from financing operations amounted to SEK 603 million (-318), of which repurchasing own shares was SEK -82 million (–).

January – December 2022

Cash flow from current operations amounted to SEK -352 million (4,807), of which cash flow from changes in working capital was SEK -3,521 million (874). The negative cash flow from changes in working capital derives from all business areas. Cash flow from current operations included dividends from partially owned companies of SEK 185 million (307).

Cash flow from investment activities was SEK -1,603 million (-1,766). Investments during the year mainly consisted of machines and vehicles in business area Industry as well as business combinations in business area Civil Engineering. In addition, business area Project Development increased its exposure and lending to joint ventures. Besides machine investments in Industry, last year included business combinations in business area Civil Engineering and increased exposure to joint ventures in Project Development.

Cash flow before financing was SEK -1,955 million (3,041).

Cash flow from financing operations amounted to SEK 483 million (-1,082), of which paid dividends were SEK -1,475 million (-1,327) and repurchasing of own shares was SEK -500 million (–).

Cash flow before financing

Mariastaden

Helsingborg