Financial position and cash flow

Financial position

Total assets according to segment reporting per December 31, 2023 were SEK 44,295 million (43,220). Equity amounted to SEK 15,082 million (14,978), which means the equity/assets ratio was 34.0 percent (34.7).

Interest-bearing net debt amounted to SEK 8,676 million (6,899) on December 31, 2023. The increase in net debt refers to more tied up working capital mainly in business area Project Development. Net debt includes project financing of the unsold part of our own housing developments as long as they are in production. The unsold part was SEK 2,685 million (2,209). Interest-bearing receivables amounted to SEK 2,638 million (1,617). The increase is primarily due to a capital claim of SEK 1,067 million on Unibail Rodamco Westfield according to the arbitration decision announced on June 30, 2023. For details regarding the arbitration decision, see Other information. The average interest rate in the loan portfolio, including derivatives, was 5.7 percent (3.3) on December 31, 2023.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 6,410 million at the end of the year compared to SEK 7,640 million on December 31, 2022.

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 2,428 million at the end of the year compared to SEK 2,801 million on December 31, 2022. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 328 million of contingent liabilities compared to SEK 97 million on December 31, 2022.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 165 million (830). During the year tangible and intangible fixed assets were net invested for SEK 1,488 million (2,152). The investments mainly refer to investments in machines as well as construction of production facilities for concrete elements in business area Industry.

Net divestments in project and development properties, which are recognized as inventory items, totaled SEK -420 million (net invested totaled SEK 1,423) during the quarter. The divestments included the office building project The Corner in Malmö and rental apartment buildings in Housing Development. Net investments in project and development properties, which are recognized as inventory items, totaled SEK 1,608 million (2,268) during 2023. The investments mainly refer to development rights, construction of rental apartment projects as well as a more capital tied-up in unsold apartments in our own housing developments.

Net debt

MSEK Dec 31
2023		 Dec 31
2022
Mkr 31 dec
2023		 31 dec
2022
Bank loans Banklån 5,380 4,075
Commercial papers Företagscertifikat 523 167
Bonds Obligationer 3,047 2,747
Financial leasing liabilities Finansiella leasingskulder 837 762
Project financing, unsold part of housing projects Projektfinansiering, osåld del av bostadsprojekt 2,685 2,209
Other interest-bearing liabilities Övriga räntebärande skulder 85 62
Interest-bearing receivables Räntebärande fordringar -2,638 -1,617
Liquid funds Likvida medel -1,243 -1,506
Net debt, segment reporting Nettoskuld, segmentsredovisning 8,676 6,899
Additional leasing liabilities according to IFRS 16 Tillkommande leasingskulder enligt IFRS 16 1,420 1,749
Project financing, sold part of housing projects Projektfinansiering, såld del av bostadsprojekt 4,441 8,033
Net debt, IFRS Nettoskuld, IFRS 14,537 16,681

Net debt and net debt/equity ratio

Cash flow

October – December 2023

Our work to reduce working capital has been successful and led to a better cash flow. Cash flow from current operations amounted to SEK 1,853 million (-21) in the fourth quarter. Cash flow included higher interest costs. Dividends from partly owned companies had a positive effect of SEK 68 million (165). Cash flow from changes in working capital was SEK 736 million (-1,226) and the positive cash flow was primarily generated in business area Industry. Property sales had a positive effect in business area Project Development but investments in rental apartment projects and capital tied up in unsold homes in our own housing developments still tie up a lot of working capital.

Cash flow from investment activities was SEK -391 million (-876). Investments during the quarter consisted of machine investments and investments in production facilities in Construction System in business area Industry as well as loans to partly owned companies in Project Development.

Cash flow before financing improved and amounted to SEK 1,462 million (-897).

Cash flow from financing operations amounted to SEK -1,225 million (603). During the fourth quarter 2022 repurchases of own shares were made by SEK -82 million.

January – December 2023

Cash flow from current operations amounted to SEK -56 million (-352). Cash flow has been charged by higher interest costs. Dividends from partly owned companies had a positive effect of SEK 84 million (185). Cash flow from changes in working capital was SEK -2,357 million (-3,521). The negative cash flow from changes in working capital is primarily related to business area Project Development where investments in rental apartment projects and capital tied up in unsold homes in our own housing developments tie up a lot of working capital.

Cash flow from investment activities was SEK -1,261 million (-1,603). Investments during the year consisted of machine investments and investments in production facilities in Construction System in business area Industry as well as greater engagement and loans to partly owned companies in Project Development. Last year cash flow included, in addition to machine investments and investments in production facilities in business area Industry, acquisitions in Civil Engineering and greater engagement and loans to partly owned companies in Project Development.

Cash flow before financing was SEK -1,317 million (-1,955).

Cash flow from financing operations amounted to SEK 1,051 million (483), of which paid dividends were SEK -1,150 million (-1,475) and SEK 2,201 million (2,458) in loans taken out. During 2022 own shares were repurchased for SEK -500 million.

Cash flow before financing

Fire and Rescue Station

Emmaboda