Annual Report • Feb 1, 2024
Annual Report
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Earnings per share, was SEK 2.70 (1.46).
Net sales amounted to SEK 13,269 M (13,987).
| signed shortly. |
Bonava have finalised the negotiations with our lenders about the extension of credit facilities by three years based on the main conditions that was set in December 2023 and an agreement will be |
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| | On 1 February 2024, Bonava announced revised financial targets. The target for the operating margin, at least 10 per cent by 2026, stands firm, while the net debt/equity ratio target will no longer apply. A new target has been added: return on equity is to be at least 15 per cent over time. |
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| *Recognised revenue and profit pertain to continuing operations at the end of the period. | ||||||
| SEK M continuing operations | 2023 | 2022 | 2023 | 2022 | ||
| Oct–Dec | Oct–Dec | Δ% | Jan–Dec | Jan–Dec | Δ% | |
| Net sales | 4,989 | 5,664 | –12 | 13,269 | 13,987 | –5 |
| Gross profit | 672 | 582 | 15 | 1,421 | 1,689 | –16 |
| Gross margin, % | 13.5 | 10.3 | 10.7 | 12.1 | ||
| Operating profit before items affecting comparability¹⁾ | 464 | 351 | 32 | 660 | 858 | –23 |
| Operating margin before items affecting comparability, %¹⁾ | 9.3 | 6.2 | 5.0 | 6.1 | ||
| Operating profit after items affecting comparability | 427 | 295 | 45 | –619 | 802 | –177 |
| Operating margin after items affecting comparability, % | 8.6 | 5.2 | –4.7 | 5.7 | ||
| Profit before tax | 294 | 219 | 34 | –1,137 | 609 | –287 |
| Earnings per share, SEK²⁾ | 2.70 | 1.46 | 85 | –10.66 | 4.10 | –360 |
| Net debt³⁾ | 4,951 | 7,259 | –32 | 4,951 | 7,259 | –32 |
| Return on capital employed, R12, %³⁾ | 4.3 | 6.9 | 4.3 | 6.9 | ||
| Equity/assets ratio, %³⁾ | 34.6 | 31.2 | 34.6 | 31.2 | ||
| Number of building rights | 28,900 | 29,400 | –2 | 28,900 | 29,400 | –2 |
| Number of housing units sold | 356 | 605 | –41 | 1,493 | 2,536 | –41 |
| Sales value of housing units sold | 1,610 | 1,952 | –17 | 5,597 | 8,258 | –32 |
| Number of production starts whereof investment properties |
394 | 534 231 |
–26 | 1,333 | 2,513 231 |
–56 |
| Number of housing units in production whereof investment properties |
3,055 | 6,498 426 |
–53 | 3,055 | 6,498 426 |
–53 |
| 55 | 69 | –20 | 55 | 69 | ||
| Sales rate for ongoing production, %⁴⁾ |
4) Excluding investment properties.
1,493 NUMBER OF HOUSING UNITS SOLD, RTM
28,900 NUMBER OF BUILDING RIGHTS
The year concluded with higher levels of activity in our markets. The new financing package will increase Bonavas financial and operational flexibility and providing us with a basis for being ready to scale up and start new, profitable projects when the conditions are right. A strong cash flow and significantly lower net debt were reported in the fourth quarter.
In the second half of 2023, we could see signs that the market was stabilising, and we noted an increase in activity and demand in most of our markets during the fourth quarter. The markets in Germany and the Baltics remain the most active, but we also noted increased activity in Finland and Sweden. Although it is too early to speak of an upturn, we have seen a steady increase in activity in the fourth quarter as regards the number of prospective buyers at showings and the number of bookings and sales. The market situation could still be rapidly impacted by changes in expectations regarding inflation and interest rates. Low production volumes in recent years have created a pent-up need, thereby stabilising housing prices. We are still planning for a challenging market in 2024, and we are prepared to act when the market changes.
The number of housing units sold during the period fell to 356 (605). A portfolio transaction for investors was carried out in the comparative period. Sales in the consumer business increased 54 per cent for the fourth quarter, year-on-year. We also increased the number of production starts for consumers in the quarter to 394 (160). The total value of housing units sold that are to be delivered to customers in the next 18 months is SEK 7.1 Bn.
From a business perspective, the fourth quarter is the largest in terms of the number of housing units delivered and recognised in profit. During the quarter, 1,444 (1,668) housing units were recognised in profit, with net sales totalling SEK 5.0 Bn (5.7). Our underlying gross margin was 13.6 per cent (14.3), with the effects of selective price reductions bringing the margin down year-on-year. Changes implemented in the organisation, a clearer division of responsibilities and an improved investment process have all increased the precision of project calculations, which are gradually improving despite high levels of cost inflation. Indirect costs and selling and admin decreased 16 per cent during the quarter as an effect of savings measures that were implemented. At the end of the quarter, negotiations concerning the German restructuring were finalised, and implementation commenced and will gradually be carried out in 2024. The measures implemented are yielding the planned effect, totalling SEK 290 M on an annual basis. We recognise our indirect costs and selling and admin on a net basis after capitalisation of costs for ongoing projects. Upon full implementation, the savings will total approximately SEK 620 M net (SEK 1 Bn gross) from 1 January 2025. The underlying operating margin in the fourth quarter was 9.5 per cent (10.2).
The strategic divestments of business units and building rights, and the systematic efforts that took place during the year, have resulted a significantly lower level of debt. Our net debt totalled just under SEK 5 Bn at the end of the year, driven by a strong cash flow from operating activities and the proceeds from the divestment of operations in St. Petersburg. We will continue to focus intensely on reducing tied-up capital and divesting non-strategic building rights for the purpose of strengthening conditions to be able to allocate capital to profitable production starts.
Housing units are developed over long periods of time, and long-term financing is therefore needed. Just before Christmas, we could announce that we had reached a conditional agreement with our lenders. Bonava have now finalised the negotiations with our lenders based on the main conditions that was set in December and an agreement will be signed shortly. The new financing package involves an amended capital structure that facilitates operational and financial flexibility and lowers the financial risk. The financing package means that we have renewed bank financing for three years, we have a fully underwritten preferential rights issue of just over SEK 1 Bn and we have extended our SEK 1.2 Bn green bond by three years. With the new financing in place, we can scale up and start new profitable projects when the conditions are right.
Following on from the work carried out during the year and the new financing package presented, we have also reviewed our financial targets. We have chosen three targets: operating margin, return on equity and dividend payout ratio. We want to be clear about which long-term targets we are working towards, even though it may be difficult to achieve them in the short term. Our potential to achieve the targets is linked to our ability to gradually increase the number of production starts to a more sustainable level.
Our goal of achieving an operating margin before items affecting comparability of at least 10 per cent by 2026 stands firm, as does our long-term dividend policy, stating that we will distribute 40 per cent of profit after tax over time. To clarify how we work with capital efficiency, we have chosen to set a target for return on equity of at least 15 per cent over time. The targets rest on a financial framework aimed at balancing the financial risks in the operations. The equity/assets ratio is to exceed 30 per cent and the Group's net debt is not to exceed net project assets. This clarifies that investments in building rights or dividends to shareholders may only be made using shareholders' equity. The Board of Directors proposes that no dividend be paid for 2023. Moreover, the new financing package does not contain scope to pay any dividends in the next three years.
In summing up 2023, we can state that it was a challenging year for Bonava and the industry as a whole. We have deliberately held back on the number of production starts since the beginning of 2022 due to the heightened market risk. This will result in us having a substantially lower business volume in 2024. We have adjusted our costs accordingly. With long-term financing in place and lower financial risk, our main focus will be on starting profitable projects when the conditions are right. We are well positioned in relation to growing geographic regions and have a solid building rights portfolio as a basis.
I am incredibly proud of the hard work my colleagues put in during the year, and together we striving to achieve our purpose: creating happy neighbourhoods for the many. I would like to extend my sincere thanks to all our employees, suppliers and partners.
"With the new financing we can scale up and start new profitable projects when the conditions are right."
Population growth and urbanisation in combination with low levels of housing construction over many years has led to a shortage of housing units in destination regions. In the long term, we foresee a large need for sustainable and well-planned homes. During recent years the market situation has been challenging, with a sharp fall in housing construction as a result. In the second half of 2023, we could see signs that the market was stabilising. Although it is too early to speak of an upturn, we have seen a steady increase in activity in the fourth quarter as regards the number of prospective buyers at showings and the number of bookings and sales. The market situation could still be rapidly impacted by changes in expectations regarding inflation and interest rates.
Our business is local, there are many players, competition is fierce and market developments are rapid. Those who act decisively to meet these new conditions will be standing strong when the market turns around.
During the preceding year, we noted increased costs for materials. During the year, cost increases have tapered off and are continuing to drop. Access to materials has stabilised while many subcontractors are competing for bids.
Demand for housing units remained cautious. Higher interest rates, high inflation, and increased uncertainty affected demand, primarily, but also the price trend. The organisation has responded to the challenging market conditions through active, targeted sales initiatives and becoming even closer to potential customers. Some selective price reductions make housing buyers more prone to act.
Germany is Bonava's largest market. There has been a shortage of housing units in Germany for many years and this topic is high on the political agenda. The offering of new housing units is low, while customers are cautious. Housing prices in large cities were impacted to a greater extent than prices outside these areas. Berlin, Cologne and Dortmund are the regions in which we are seeing the greatest activity as regards the number of prospective buyers at showings and the number of bookings and sales at present.
Sweden is Bonava's second-largest market. We have an attractive breadth in our offering of housing units in large cities for investors and consumers. Higher interest rates and the increased cost of living adversely impacted the housing market during the year, with lower levels of sales and fewer production starts as a result. Some positive signs could be seen during the fourth quarter regarding the interestrate trend, creating a more positive sentiment among customers although sale volumes remained low.
The housing market in Finland is concentrated primarily to the metropolitan regions with the largest population growth and expanded infrastructure: Helsinki, Tampere and Turku. The housing market in Finland has suffered greatly from higher interest rates and inflation, and customer activity is subdued, but a more positive sentiment was perceived in the market during the fourth quarter.
The markets in all three Baltic capitals are growing economies. The low standard of the existing housing stock combined with growing demand for rental housing presents opportunities to build and manage them. The favourable market conditions in the Baltic markets remain, with a low level of unemployment and a lack of supply. The prices for new housing units are stable in all markets, and Riga is the submarket that has the highest level of activity as regards the number of prospective buyers at showings and the number of bookings and sales.
Due to the fact that Bonava has divested its operations in Norway and St. Petersburg, the consolidated income statement is presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. This entails recognising the result from the operations in Norway and St. Petersburg on a line in the income statement designated as discontinued operations. The historical comparative figures in the consolidated income statement have been restated. In the cash flow statement, cash flow attributable to discontinued operations is indicated in its own table.
Net sales amounted to SEK 4,989 M (5,664). Fewer housing units recognised in profit resulted in a decrease in sales while a positive translation effect of SEK 304 M from foreign currency had a positive impact on sales. The average price per housing unit recognised in profit was unchanged at SEK 3.4 M (3.4).
During the quarter, 900 (1,099) housing units for consumers were recognised in profit, generating net sales of SEK 3,454 M (4,066).
Net sales to investors totalled SEK 1,520 M (1,588), and the number of housing units recognised in profit was 544 (569).
Gross profit amounted to SEK 672 M (582) and the gross margin was 13.5 per cent (10.3). The gross margin was burdened with land sales, impairments and risk provisions of SEK -8 M (-226) during the quarter. Adjusted for these items, the underlying gross margin was 13.6 per cent (14.3).
Operating profit before items affecting comparability was SEK 464 M (351) and the operating margin was 9.3 per cent (6.2).
Exchange rate fluctuations had a positive impact of SEK 35 M on operating profit before items affecting comparability compared with the year-earlier period.
During the quarter, there was an impairment of SEK -35 M pertaining to unsold housing units in a previously completed project in Germany, which has been classified as an item affecting comparability like similar adjustments in Q3. Items affecting comparability for the quarter totalled SEK -37 M. Operating profit after items affecting comparability amounted to SEK 427 M (295).
Net financial items, profit before tax, tax and profit for the quarter Net financial items were SEK -132 M (-76), attributable to increased interest expenses due to higher underlying market interest rates.
Profit before tax for the quarter was SEK 294 M (219). Tax on profit for the quarter was SEK -5 M (-63), corresponding to a tax rate of 2 per cent (29). The low tax rate is attributable primarily to deferred tax not being reported for deficits generated in 2023.
Profit for the period for continuing operations amounted to SEK 289 M (157).
Profit for the period for discontinued operations amounted to SEK 52 M (-841). The earnings for discontinued operations are attributable to capital gains from the divestment of operations in St. Petersburg. The impairment of net assets pertaining to operations in St. Petersburg was charged to the preceding year.
operations
Net sales totalled SEK 13,269 M (13,987), since fewer housing units were recognised in profit compared with the year-earlier period – though at a slightly higher average price. The average price per housing unit recognised in profit amounted to SEK 3.3 M (3.2).
During the period, 2,419 (2,744) housing units for consumers were recognised in profit, with net sales of SEK 9,308 M (9,731).
Net sales to investors totalled SEK 3,871 M (4,180), and the number of housing units recognised in profit was 1,550 (1,625).
Exchange rate fluctuations had a positive translation effect of SEK 782 M on consolidated net sales compared with the year-earlier period.
Gross profit amounted to SEK 1,421 M (1,689) and the gross margin was 10.7 per cent (12.1).
The gross margin was charged with risk provisions, impairments and land sales of SEK -141 M (-387) during the year. Adjusted for these provisions, the underlying gross margin was 11.8 per cent (14.8).
Operating profit before items affecting comparability was SEK 660 M (858) and the operating margin was 5.0 per cent (6.1).
Exchange rate fluctuations had a positive impact of SEK 58 M on operating profit before items affecting comparability compared with the year-earlier period.
conditions for increased flexibility. Costs of SEK -435 M pertaining to restructuring were reserved in 2023.
Property held for future development was subject to a total impairment of SEK -686 M. One completed tenant-owned apartment project in Germany was also impaired by SEK -35 M in the fourth quarter.
Additionally, one project in Sweden with rental apartments intended for Build-to-Manage (B2M) was revalued by SEK -123 M.
The restructuring, impairments and revaluation – SEK -1,279 M in total – are classified as items affecting comparability. Operating loss after items affecting comparability amounted to SEK -619 M (802).
Net financial items, profit before tax, tax and profit for the period Net financial items amounted to SEK -518 M (-193), due to increased interest expenses as a result of higher underlying market interest rates.
Loss before tax for the period was SEK -1,137 M (609). Tax on profit for the period was SEK -5 M (-169), corresponding to a tax rate of 0 per cent (28). The low tax rate is attributable primarily to deferred tax not being reported for deficits generated in 2023.
Loss for the period for continuing operations amounted to SEK - 1,143 M (441).
Loss for the period for discontinued operations totalled SEK -194 M (-743), of which SEK -795 M pertained to capital losses from the divestment of the Norwegian operations in the second quarter while the remainder pertains to accumulated earnings and effects from the divestment of operations in St. Petersburg; refer further to Note 8. The impairment of net assets in St. Petersburg was charged to the preceding year. 2023 2022 2023 2022
| operating profit before items affecting comparability compared with the year-earlier period. Bonava has initiated further restructuring of its operations in Germany, Sweden and Finland in order to create a lower cost base and |
preceding year. | the remainder pertains to accumulated earnings and effects from the divestment of operations in St. Petersburg; refer further to Note 8. The impairment of net assets in St. Petersburg was charged to the |
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| 2023 | 2022 | 2023 | 2022 | ||||||||
| Continuing operations | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |||||||
| Net sales | |||||||||||
| Germany | 3,154 | 3,306 | 7,283 | 7,785 | |||||||
| Sweden | 858 | 750 | 2,685 | 2,745 | |||||||
| Finland | 646 | 769 | 2,531 | 1,759 | |||||||
| Baltics | 332 | 382 | 770 | 832 | |||||||
| Other operations¹⁾ | 457 | 1 | 864 | ||||||||
| Total | 4,989 | 5,664 | 13,269 | 13,987 | |||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Continuing operations | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |||||||
| Operating profit before items affecting comparability | |||||||||||
| Germany | 386 | 383 | 628 | 904 | |||||||
| Sweden | 60 | –80 | 77 | –54 | |||||||
| Finland | 45 | 49 | 107 | 88 | |||||||
| Baltics | 38 | 60 | 68 | 108 | |||||||
| Other operations¹⁾ | –66 | –62 | –219 | –188 | |||||||
| Total | 464 | 351 | 660 | 858 |
Continuing and discontinued operations
Total assets were SEK 19,097 M (25,579). The decrease is due primarily to the divestment of the operations in St. Petersburg and Norway, as well as a lower number of ongoing housing projects. Exchange rate fluctuations decreased assets by SEK 22 M compared with 31 December 2022.
Net debt amounted to SEK 4,951 M (7,259). As of 30 September 2023, net debt was SEK 6,305 M. The decrease during the quarter was due in part to a strong cash flow from operating activities, with a large number of units being delivered to customers, and in part to the divestment of Bonava St. Petersburg. The purchase price less selling costs totalled SEK 564 M; refer further to Note 8. Exchange-rate fluctuations decreased net debt by SEK 40 M compared with 31 December 2022 and SEK 134 M compared with 30 September 2023.
Capital employed amounted to SEK 12,422 M (15,568). The decline is due to decreased borrowing as outlined above as well as lower levels of shareholders' equity as a result of the items affecting comparability that were recognised in 2023. Exchange rate fluctuations decreased capital employed by SEK 14 M compared with 31 December 2022.
The equity/assets ratio was 34.6 per cent (31.2). Adjusted for the rights issue that was included in the financing package, equity/assets ratio totalled approximately 37.8 per cent at the end of the period. As of 30 September 2023, the equity/assets ratio was 27.9 per cent. The net debt/equity ratio totalled 0.8x (1.0x as per 30 September 2023).
Bonava's loan agreements with external creditors, are linked to two covenants. The first is shareholders' equity in relation to total assets, which is not to fall below 25 per cent. According to the calculation method with the adjustments found in the loan agreements, it was 34.9 per cent. The second covenant is the interest coverage ratio, or earnings before interest, taxes, depreciation, and amortisation in relation to financial net. For the third and fourth quarters of 2023, Bonava came to an agreement with its creditors to reverse restructuring costs of SEK 433 M in the calculation. Under the loan agreements, the interest coverage ratio is not to fall below 2.0x. At 31 December 2023, this figure was 1.8x, which the creditors have agreed to. For more information, refer to Note 4.
Cash flow before financing was SEK 940 M (-105). Stronger earnings and the purchase price pertaining to the divested operations in St. Petersburg, received in October, made a positive contribution. Cash flow from operating activities before change in working capital totalled SEK 444 M (343). Cash flow from change in working capital amounted to SEK 31 M (-417). Sales of housing projects amounted to SEK 3,460 M (5,350). Investments in housing projects decreased to SEK -1,244 M (-3,995). Cash flow from other changes in working capital was SEK - 2,184 M (-1,771), which was primarily due to lower levels of customer advances year-on-year.
The divestment of the operations in St. Petersburg resulted in positive net cash flow of SEK 502 M, where the purchase price received had a positive effect on cash flow and cash in the divested operation had a negative effect.
Cash flow before financing was SEK 716 M (-3,345). Purchase prices received that pertain to divested operations and reduced investments in housing projects improved the cash flow. Cash flow from operating activities before change in working capital totalled SEK 229 M (527). Cash flow from changes in working capital amounted to SEK -567 M (- 3,769). Sales of housing projects amounted to SEK 11,293 M (13,312) and investments in housing projects were reduced to SEK -8,099 M (- 16,037), with investments decreasing in all markets except the Baltics. Cash flow from other changes in working capital amounted to SEK -3,760 M (-1,045) with a reduction in customer advances, primarily in Germany and Finland, decreasing cash flow. The divestment of the Norwegian operations had a positive effect of SEK 737 M on cash flow, while the divestment of the operations in St. Petersburg impacted the cash flow positively by SEK 502 M.
Net debt in tenant-owner associations and housing companies Other net debt
Bonava's business model and the contract structure of the housing projects mean that when production is completed and customers have taken possession of the housing units, the sales value of these units is recognised under "Net sales" in the income statement. This applies to housing units for both consumers and investors.
The carrying amount of completed but not yet handed over housing units is transferred from "Ongoing housing projects" to "Completed housing units" in the balance sheet.
Completed housing units from earlier periods are added to net sales in the quarter when delivery to the customers occurs.
In our Build-to-Manage (B2M) model, we are building rental apartments intended for own management. This entails constructing, retaining, and managing for a period instead of divesting immediately. Investments have been made in one project of this type in Sweden since the third quarter of 2022 and in two project in the Baltics since the end of 2021.
Both rental projects in the Baltics were completed in the fourth quarter. The properties are expected to generate rental income in 2024, since the occupancy rate for the properties is expected to gradually increase.
The development of Bonava's B2M project in Sweden was suspended in the second quarter, and in the third quarter a change in value of SEK -123 M was recognised. At the end of December 2023, the project was classified as property held for future development and thus measured as a building right.
For more information on Bonava's value chain, refer to our Annual Report, which is available at bonava.com.
Estimated completions of ongoing projects per quarter
The diagrams illustrate the estimated completion dates of projects that have been started for housing units for consumers and investors, respectively. The number of housing units have been rounded off since they are estimates of the point in time of completion, and shifts between quarters are common.
The curves illustrate the percentage of units sold at 31 December 2023. The diagrams can give an indication of future net sales, provided that the housing units are also delivered to the end customers. For those bars that show unsold housing units, both sale and completion need to occur before they are recognised in profit.
The lines under the diagram clarify the changes that have occurred since the assessment presented in the interim report for the preceding
The number of sold completed housing units not recognised in profit at the end of the quarter was 45 (35). At 30 September 2023, the figure was 44.
The number of unsold completed housing units at the end of the quarter was 505 (141). As of 30 September 2023, this total was 371; 83 were sold during the quarter and 217 new housing units were added. We are focused sharply on reducing this tied-up capital.
At the end of the preceding quarter, Bonava estimated that approximately 1,110 consumer housing units would be completed in the fourth quarter. A total of 1,035 housing units were completed.
During the quarter, it was estimated that 730 housing units for investors would be completed; 739 were completed, of which 195 pertained to B2M in the Baltics.
The number of housing units for consumers recognised in profit during the quarter was 900 (1,099).
During the quarter, 544 (569) housing units for investors were recognised in profit.
The value of sold housing units in production and completed housing units sold not yet recognised in profit at the end of the quarter was SEK 4,363 M (8,220) for consumers and SEK 2,766 M (5,746) for investors.
quarter. One change of this kind is a B2M project with 231 planned housing units in Sweden being reclassified to property held for future development and no longer being included in the diagram.
The top line shows an amended estimate of when the units are expected to be completed, compared with the latest published interim report. Changes such as the date for receiving building permits, disruptions in the logistics and production chain or other factors could positively or negatively impact the estimated time of completion.
The bottom line shows the expected time of completion for the units for which production has started during the quarter. These units thus entail an increase in the total number of units included in the graph.
In light of the weaker market, we have been restrictive regarding new investments in land since mid-2022. We are developing existing building rights in our portfolio in order to have land ready for building, and can quickly start projects up once demand turns around. Prioritising cash flow also means that we are reviewing our building rights portfolio. We are evaluating where we have the greatest potential to create profitable projects, and are divesting land and withdrawing from option contracts where we do not see the same potential.
During the third quarter, the building rights portfolio was measured through both external valuations and internally by measuring the discounted future cash flow. Our building rights are recognised as current assets and thus recorded at the lower of market value and cost per asset. The estimated market value totalled SEK 9.5 Bn, corresponding to a surplus value of SEK 1.2 Bn in the third quarter. No new measurements were made in the fourth quarter, but the next planned valuation of the building rights portfolio will be in the third quarter of 2024. For more information, refer to Note 10.
On/Off balance sheet Carrying amount, building rights portfolio
| planned valuation of the building rights portfolio will be in the third quarter of 2024. For more information, refer to Note 10. The total number of building rights at the end of the quarter amounted to 28,900 (29,400). The number of building rights was |
31 December 2023. | ||||
|---|---|---|---|---|---|
| Building rights | |||||
| On/Off balance sheet | Carrying amount, building rights portfolio | ||||
| 2023 | 2022 | ||||
| 10,000 | |||||
| Number of building rights | 9,000 | ||||
| Germany | 9,000 | 9,800 | 8,000 | ||
| Sweden | 9,500 | 8,700 | |||
| Finland | 3,600 | 3,400 | 7,000 | ||
| Baltics | 6,800 | 7,500 | 6,000 | ||
| Sum | 28,900 | 29,400 | 5,000 | ||
| 4,000 | |||||
| Of which, off-balance sheet | 3,000 | ||||
| Germany | 1,600 | 3,100 | 2,000 | ||
| Sweden | 2,500 | 2,900 | 1,000 | ||
| Finland | 2,100 | 2,100 | 0 | ||
| Baltics | 2,000 | 3,250 | |||
| Sum | 8,200 | 11,350 | |||
somewhat lower year-on-year, with decreases in the Baltics and Germany that are attributable to starts and divestments of nonstrategic building rights, while Sweden and Finland increased the number of building rights slightly, with Sweden reviewing the previous assessment of potential the building rights, which has led to an increase in building rights without any additional investment. Bonava recognises some of its building rights off the balance sheet, such as land that Bonava controls through a contract with options or other agreements where the land has not yet been taken into possession. The number of building rights off the balance sheet at the end of the quarter amounted to 8,200 (11,350). Refer also to Note 6.
The diagram below illustrates the development of the building rights portfolio during the last year and its composition in the fourth quarter of 2023. Properties held for future development in continuing operations totalled SEK 8.1 Bn (8.2) at the end of the quarter, on a par with the preceding year. No need for impairment was identified as of 31 December 2023. 31 Dec 31 Dec
Number of building rights at 31 December 2023, excluding discontinued operations
Distribution of building rights, excluding discontinued operations
Germany is Bonava's largest market, with operations in the major city regions of Berlin and Hamburg as well as the Baltic Sea, Saxony, Rhein-Ruhr, Cologne/Bonn, Rhein-Main and Rhein-Neckar/Stuttgart. We offer apartments and single-family homes to consumers, and multi-family housing with rental apartments to investors.
During the quarter 263 (59) housing units for consumers were started, and the number of housing units sold to consumers increased compared to the preceding year 222 (139).
NET SALES AND PROFIT
During the quarter, 475 (508) housing units for consumers and 166 (192) housing units for investors were recognised in profit. Net sales decreased year-on-year to SEK 3,154 M (3,306), which is attributable to a lower number of housing units delivered to consumers.
The gross margin improved to 14.8 per cent (14.1), with the Berlin region contributing high margins in projects that were recognised in profit.
No housing units (154) were started for or sold to investors. The sales rate for ongoing production was 58 per cent (64).
Net sales decreased to SEK 7,283 M (7,785), due primarily to fewer housing units being delivered to investors.
Costs for restructuring of SEK -402 M and impairment of land and a completed project of SEK -477 M – SEK -879 M in total – have been classified as items affecting comparability. Operating profit before items affecting comparability totalled SEK 628 M (904), with an operating margin before items affecting comparability of 8.6 per cent (11.6). The margin for the year was impacted by price adjustments in selected consumer projects, whereas a number of high-margin projects were delivered the preceding year.
| During the quarter, there was an impairment of SEK -35 M pertaining to unsold housing units in a previously completed project in Germany, which has been classified as an item affecting comparability like similar adjustments in the third quarter. Restructuring costs of SEK -32 M, which were classified as items affecting comparability, were charged to the preceding year. Operating profit before items affecting comparability totalled SEK 386 M (383), with an operating margin before items affecting comparability of 12.2 per cent (11.6). Operating profit after items affecting comparability amounted to SEK 351 M (351) with an operating margin of 11.1 per cent (10.6). |
(11.6). The margin for the year was impacted by price adjustments in selected consumer projects, whereas a number of high-margin projects were delivered the preceding year. Operating loss after items affecting comparability amounted to SEK -251 M (872) with an operating margin of -3.5 per cent (11.2). |
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|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |
| Net sales | 3,154 | 3,306 | 7,283 | 7,785 |
| Gross profit | 468 | 466 | 917 | 1,213 |
| Gross margin, % | 14.8 | 14.1 | 12.6 | 15.6 |
| Selling and administrative expenses | –82 | –83 | –289 | –309 |
| Operating profit/loss before items affecting comparability | 386 | 383 | 628 | 904 |
| Operating margin before items affecting comparability, % | 12.2 | 11.6 | 8.6 | 11.6 |
| Items affecting comparability | –35 | –32 | –879 | –32 |
| Operating profit/loss after items affecting comparability | 351 | 351 | –251 | 872 |
| Operating margin after items affecting comparability, % | 11.1 | 10.6 | –3.5 | 11.2 |
| Capital employed | 6,936 | 7,074 | 6,936 | 7,074 |
| whereof carrying amount properties held for future development | 4,456 | 4,794 | 4,456 | 4,794 |
| Return on capital employed, % | 8.2 | 15.3 | 8.2 | 15.3 |
| Number of housing units sold | 222 | 293 | 900 | 972 |
| Sales value of housing units sold | 1,313 | 1,195 | 4,327 | 4,548 |
| Number of production starts | 263 | 213 | 786 | 879 |
| Number of housing units in ongoing production | 1,930 | 2,726 | 1,930 | 2,726 |
| Sales rate for ongoing production, % | 58 | 64 | 58 | 64 |
| Number of housing units completed, not recognised in profit | 100 | 35 | 100 | 35 |
| Number of housing units for sale (ongoing production and completed) | 894 | 1,015 | 894 | 1,015 |
| Number of housing units recognised in profit | 641 | 700 | 1,510 | 1,888 |
In Sweden, Bonava offers apartments and single-family homes to consumers in Stockholm, Gothenburg, Linköping, Uppsala and Umeå. We offer rental projects to investors in some 15 cities.
No housing units for consumers (22) were started during the quarter. The number of housing units sold to consumers during the quarter was 20 (11).
Net sales increased to SEK 858 M (750) as a result of more housing units delivered compared with the year-earlier period. During the quarter, 140 (116) housing units for consumers and 162 (162) housing units for investors were recognised in profit.
Gross profit in the year-earlier fourth quarter was charged with SEK -118 M in impairment of capitalised project engineering costs and risk provisions; adjusted for these items, the gross margin totalled 10.8 per cent – compared with this year, with the gross margin improving to 11.5 per cent. The increase is attributable to improved margins in an investment project that was delivered.
No housing units were started for or sold to investors, either during the quarter or in the year-earlier period. The sales rate for ongoing production was 24 per cent (76).
Net sales amounted to SEK 2,685 M (2,745). During the period, 467 (507) housing units for consumers and 420 (374) housing units for investors were recognised in profit.
Costs of SEK -303 M were classified as items affecting comparability in 2023, of which SEK -20 M were for restructuring, SEK -160 M for impairment of land and SEK -123 M for change in value of a rental housing project intended for investment properties (B2M). Operating profit before items affecting comparability amounted to SEK 77 M (-54) and the operating margin was 2.9 per cent (-2.0). Operating loss after items affecting comparability amounted to SEK -226 M (-74) and the operating margin was -8.4 per cent (-2.7). 2023 2022 2023 2022 Oct–Dec Oct–Dec Jan–Dec Jan–Dec
| -118 M in impairment of capitalised project engineering costs and risk provisions; adjusted for these items, the gross margin totalled 10.8 per cent – compared with this year, with the gross margin improving to 11.5 per cent. The increase is attributable to improved margins in an investment project that was delivered. Operating profit before items affecting comparability amounted to SEK 60 M (-80) and the operating margin was 7.0 per cent (-10.6). Operating profit after items affecting comparability amounted to SEK 65 M (-100). Costs of SEK 5 (-20) M resulting from reorganisation were classified as items affecting comparability. |
impairment of land and SEK -123 M for change in value of a rental housing project intended for investment properties (B2M). Operating profit before items affecting comparability amounted to SEK 77 M (-54) and the operating margin was 2.9 per cent (-2.0). Operating loss after items affecting comparability amounted to SEK -226 M (-74) and the operating margin was -8.4 per cent (-2.7). |
||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | ||
| Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | ||
| Net sales | 858 | 750 | 2,685 | 2,745 | |
| Gross profit | 99 | –37 | 225 | 85 | |
| Gross margin, % | 11.5 | –4.9 | 8.4 | 3.1 | |
| Selling and administrative expenses | –39 | –43 | –148 | –139 | |
| Operating profit/loss before items affecting comparability | 60 | –80 | 77 | –54 | |
| Operating margin before items affecting comparability, % | 7.0 | –10.6 | 2.9 | –2.0 | |
| Items affecting comparability | 5 | –20 | –303 | –20 | |
| Operating profit/loss after items affecting comparability | 65 | –100 | –226 | –74 | |
| Operating margin after items affecting comparability, % | 7.6 | –13.3 | –8.4 | –2.7 | |
| Capital employed | 3,189 | 3,825 | 3,189 | 3,825 | |
| whereof carrying amount properties held for future development | 2,499 | 2,420 | 2,499 | 2,420 | |
| Return on capital employed, % | 1.9 | –1.7 | 1.9 | –1.7 | |
| Number of housing units sold | 20 | 11 | 110 | 256 | |
| Sales value of housing units sold | 92 | 33 | 464 | 1,047 | |
| Number of production starts | 22 | 88 | 374 | ||
| whereof investment properties | 231 | ||||
| Number of housing units in ongoing production | 180 | 1,326 | 180 | 1,326 | |
| whereof investment properties | 231 | 231 | |||
| Sales rate for ongoing production, % | 24 | 76 | 24 | 76 | |
| Number of housing units completed, not recognised in profit | 156 | 40 | 156 | 40 | |
| Number of housing units for sale (ongoing production and completed) | 263 | 285 | 263 | 285 | |
| Number of housing units recognised in profit | 302 | 278 | 887 | 881 |
The number of housing units sold to consumers increased during the quarter to 33 (19). The sales rate for ongoing production was 100 per cent (88), which is attributable to the fact that we have only ongoing production for investors.
October-December 2023
Net sales decreased to SEK 646 M (769) since fewer housing units were recognised in profit. During the quarter, 71 (196) housing units for consumers and 216 (110) housing units for investors were recognised in profit.
The gross margin improved to 10.2 (9.3) year-on-year. The improvement is due to our strengthening of the investment process and project governance, which has begun to have an effect on the gross margin.
No housing units (0) for consumers were started during the quarter, and no housing units (220) were started or sold to investors.
Net sales increased to SEK 2,531 M (1,759). During the period, 306 (414) housing units for consumers and 745 (304) housing units for investors were recognised in profit.
Operating profit before items affecting comparability amounted to SEK 107 M (88) and the operating margin was 4.2 per cent (5.0). Operating profit was affected by two completed and delivered projects that had low margins, which was known beforehand. The projects were started to fulfil existing contractual requirements and to avoid fines.
Costs of SEK -90 M were classified as items affecting comparability, of which SEK -7 M was for restructuring and SEK -83 M for impairment of properties held for future development. Operating profit after items affecting comparability amounted to SEK 17 M (88) and the operating margin was 0.7 per cent (5.0). Oct–Dec Oct–Dec Jan–Dec Jan–Dec
| improvement is due to our strengthening of the investment process and project governance, which has begun to have an effect on the gross margin. Operating profit before items affecting comparability amounted to SEK 45 M (49) and the operating margin was 7.0 per cent (6.4). The improvement is attributable to the fact that we are seeing the cost saving measures beginning to have an impact. Operating profit after items affecting comparability amounted to SEK 45 M (49) and the operating margin was 7.0 per cent (6.4). |
Operating profit was affected by two completed and delivered projects that had low margins, which was known beforehand. The projects were started to fulfil existing contractual requirements and to avoid fines. Costs of SEK -90 M were classified as items affecting comparability, of which SEK -7 M was for restructuring and SEK -83 M for impairment of properties held for future development. Operating profit after items affecting comparability amounted to SEK 17 M (88) and the operating margin was 0.7 per cent (5.0). |
|||
|---|---|---|---|---|
| 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
|
| Net sales | 646 | 769 | 2,531 | 1,759 |
| Gross profit | 66 | 71 | 192 | 183 |
| Gross margin, % | 10.2 | 9.3 | 7.6 | 10.4 |
| Selling and administrative expenses | –20 | –22 | –85 | –95 |
| Operating profit/loss before items affecting comparability | 45 | 49 | 107 | 88 |
| Operating margin before items affecting comparability, % | 7.0 | 6.4 | 4.2 | 5.0 |
| Items affecting comparability | –90 | |||
| Operating profit/loss after items affecting comparability | 45 | 49 | 17 | 88 |
| Operating margin after items affecting comparability, % | 7.0 | 6.4 | 0.7 | 5.0 |
| Capital employed | 788 | 974 | 788 | 974 |
| whereof carrying amount properties held for future development | 501 | 561 | 501 | 561 |
| Return on capital employed, % | 11.3 | 9.0 | 11.3 | 9.0 |
| Number of housing units sold | 33 | 239 | 162 | 838 |
| Sales value of housing units sold | 86 | 632 | 345 | 2,009 |
| Number of production starts | 220 | 75 | 765 | |
| Number of housing units in ongoing production | 418 | 1,470 | 418 | 1,470 |
| Sales rate for ongoing production, % | 100 | 88 | 100 | 88 |
| Number of housing units completed, not recognised in profit | 124 | 48 | 124 | 48 |
| Number of housing units for sale (ongoing production and completed) | 124 | 211 | 124 | 211 |
| Number of housing units recognised in profit | 287 | 306 | 1,051 | 718 |
The Baltics segment comprises the capital cities of Tallinn, Estonia; Riga, Latvia; and Vilnius in Lithuania. The offering is primarily targeted at apartments for consumers, but we also have rental housing projects for investors.
The number of housing units sold to consumers was 81 (62). The number of housing starts for consumers totalled 131 (79), with two projects started. The sales rate for ongoing production totalled 19 per cent (39), excluding investment properties (B2M), as a result of low sales volumes. No housing units were started for or sold to investors during the quarter, or in the year-earlier period.
October-December 2023
Net sales totalled SEK 332 M (382). During the quarter, 214 (279) housing units for consumers were recognised in profit. The gross margin was 15.5 per cent (18.7).
In late 2021, we began investments in rental housing projects intended for own management, in accordance with our Build-to-Manage (B2M) model. Both B2M projects in the Baltics were completed in the fourth quarter. Both projects will generate rental income in 2024, which will gradually increase during the year in pace with a rising occupancy rate. These housing units have been classified as investment properties. Refer to Note 9.
Net sales amounted to SEK 770 M (832). A lower number of housing units delivered was offset by a higher average price per housing unit recognised in profit.
Operating profit for the period was SEK 68 M (108) and the operating margin was 8.9 per cent (13.0). The lower operating margin was attributable primarily to lower gross margins in housing units delivered compared to the year-earlier period and one low-margin project being recognised in profit during the period. The low margin in this project is an effect of a shortage of materials during procurement, which impacted the costs that were procured in the project. Oct–Dec Oct–Dec Jan–Dec Jan–Dec
| Net sales totalled SEK 332 M (382). During the quarter, 214 (279) housing units for consumers were recognised in profit. The gross margin was 15.5 per cent (18.7). Operating profit totalled SEK 38 M (60) with an operating margin of 11.6 per cent (15.7). Operating profit was impacted by a low number of units delivered in Lithuania, and it was also burdened by a completed and delivered project with anticipated low margins. |
Net sales amounted to SEK 770 M (832). A lower number of housing units delivered was offset by a higher average price per housing unit recognised in profit. Operating profit for the period was SEK 68 M (108) and the operating margin was 8.9 per cent (13.0). The lower operating margin was attributable primarily to lower gross margins in housing units delivered compared to the year-earlier period and one low-margin project being recognised in profit during the period. The low margin in this project is an effect of a shortage of materials during procurement, which impacted the costs that were procured in the project. |
|||
|---|---|---|---|---|
| 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
|
| Net sales | 332 | 382 | 770 | 832 |
| Gross profit | 51 | 72 | 116 | 152 |
| Gross margin, % | 15.5 | 18.7 | 15.0 | 18.2 |
| Selling and administrative expenses | –13 | –11 | –48 | –44 |
| Operating profit/loss | 38 | 60 | 68 | 108 |
| Operating margin, % | 11.6 | 15.7 | 8.9 | 13.0 |
| Capital employed | 1,409 | 1,085 | 1,409 | 1,085 |
| whereof carrying amount properties held for future development | 632 | 515 | 632 | 515 |
| Return on capital employed, % | 5.2 | 11.3 | 5.2 | 11.3 |
| Number of housing units sold | 81 | 62 | 321 | 470 |
| Sales value of housing units sold | 120 | 92 | 460 | 654 |
| Number of production starts whereof investment properties |
131 | 79 | 384 | 495 |
| Number of housing units in ongoing production | 527 | 976 | 527 | 976 |
| whereof investment properties | 195 | 195 | ||
| Sales rate for ongoing production, %¹⁾ | 19 | 39 | 19 | 39 |
| Number of housing units completed, not recognised in profit | 170 | 53 | 170 | 53 |
| Number of housing units for sale (ongoing production and completed) | 594 | 531 | 594 | 531 |
| Number of housing units recognised in profit | 214 | 279 | 521 | 676 |
During the fourth quarter, Bonava started production of 394 housing units (534). All production starts are reported at https://www.bonava.com/en/investor-relations/housing-starts.
Parkstadt Karlshorst Location: Berlin Housing category: Multi-family housing Number of units: 120 apartments for consumers
The new Parkstadt Karlshorst neighbourhood is being built in Berlin, with Bonava set to construct just over 500 apartments. The district is characterised by a large amount of green space, and plenty of play spaces for children. Residents are offered modern homes, with planning for the district based on being climate smart, with roofs covered in greenery to retain rainwater and bind dust particles. A number of charging stations are also located in the underground garage.
In the splendidly located Teika district of Riga, Bonava has now begun the third phase of the construction of housing units, with a total of 220 modern and sustainable apartments to be built. Production of the first of these started in 2021. Each housing unit is furnished with either a balcony or a terrace, and energy efficiency is secured through modern ventilation systems and by equipping the buildings with solar panels.
Other operations consist of the Parent Company, Group adjustments, eliminations, the Danish operations and discontinued operations.
The operations in Denmark have guarantee commitments for completed projects. The costs that were recognised pertaining to Denmark during the quarter are administrative in nature and comprise primarily salaries to remaining personnel.
Bonava's operations are exposed to various types of risks, both operational and financial. During the next 12-month period, there are a number of uncertainties that could affect our operations and sales. These include raised base rates, high inflation, access to guarantees and concerns regarding the geopolitical situation in Europe. During the year, the company's geographic footprint has decreased with the divestment of the operations in Norway and St. Petersburg, which has reduced indebtedness and increased the focus on the markets that are believed will generate healthy returns over time.
Even if it is still early to talk about a recovery we have noted a gradual increase in the activity level during the fourth quarter in terms of sales, bookings and the number of potential buyers going to apartment viewings. The market situation is still subject to uncertainty and can be quickly affected by changes in expectations regarding interest rates and inflation. Costs decreased in 2023. Access to materials was normal, but work is continuously ongoing to secure deliveries of materials and services if disruptions arise. Measures has been taken to reduce costs and strengthen the cash flow by limiting investments in new building rights and production starts. Additionally, efforts to reduce tied-up capital have intensified by reducing the unsold proportion of completed and ongoing production and divesting building rights that are not deemed necessary for realising Bonava's business plan.
The financial situation is continually assessed by the Board of Directors and the Executive Management Group, who are working on a number of measures to ensure access to the required liquidity. Bonava have finalised the negotiations with our lenders about the extension of credit facilities by three years based on the main conditions that was set in December 2023 and an agreement will be signed shortly. With this, the company will have long-term financing in place, which reduces its financial risk.
During the third quarter, the building rights portfolio was measured, resulting in impairments of SEK -686 M on properties held for future development. At the time of the valuation, the estimated total market value was SEK 9.5 Bn, corresponding to a surplus value of SEK 1.2 Bn compared to the carrying amount. As of 31 December 2023, there was no need for additional material impairments in the Group.
During the fourth quarter, an investigation was begun concerning eventual guarantee errors in one project in Sweden. The investigation is ongoing, and it is not possible to reliably estimate Bonava's potential obligations in this matter. Based on what is currently known, these disputes and legal proceedings are not expected to materially impact Bonava's earnings or financial position.
For further information on material risks and risk management, refer to pages 66–68 of Bonava's Annual and Sustainability Report for 2022, which is available at bonava.com.
The average number of employees in continuing operations for the period from January to December 2023 was 1,486 (1,787).
Bonava has two share classes, Class A and Class B. Each Class A share carries ten votes and each Class B share one vote. Bonava's share capital was SEK 434 M on the balance sheet date, divided between 108,435,822 shares and 208,829,760 votes. As of 31 December 2023, Bonava had 11,154,882 Class A shares and 97,280,940 Class B shares. The number of Class B shares in treasury totalled 1,245,355, corresponding to 1.2 per cent of the capital and 0.6 per cent of the votes. At the end of the quarter, the number of shareholders was 30,385 (32,468). Bonava's largest shareholders were Nordstjernan AB, with 24.5 per cent of the capital and 49.4 per cent of the votes; followed by the Fourth Swedish National Pension Fund with 9.2 per cent of the capital and 5.4 per cent of the votes; and Schroders, with 5.6 per cent of the capital and 2.9 per cent of the votes. The ten largest shareholders controlled a total of 59.4 per cent of the capital and 68.2 per cent of the votes. More information on the Bonava share and owners is available at bonava.com/en/investorrelations.
Bonava recognises revenues and earnings from housing sales when sold and completed housing units are delivered to customers. Bonava's operations are affected by seasonal variations, which means that a majority of housing units are delivered to customers in the fourth quarter. Accordingly, earnings and cash flow before financing are usually stronger in the fourth quarter than in other quarters. This is shown in the charts depicting the estimated completions by quarter on page 8.
On 12 June, Bonava signed the agreement to divest its operations in Norway and the transaction was concluded on 30 June. For further information, refer to Note 8.
On 18 October 2023, Bonava signed an agreement with Star Development LLC for the divestment of its operations in St. Petersburg for EUR 50 M (SEK 564 M less selling costs) and received the purchase price at the same time. In conjunction with the conclusion of the transaction, Bonava has chosen to terminate the agreement with RBI Group that was signed on 31 May 2023. Approval from the Russian competition authorities was granted on 2 November 2023, meaning that the divestment of the operations in St. Petersburg was finalised on the same day; for further information refer to Note 8.
On 20 December, the Board of Directors of Bonava AB (i) resolved on a fully underwritten rights issue of Class A shares and Class B shares of approximately, but no less than, SEK 1,020 M with preferential rights for existing shareholders, and announced (ii) that the company has on certain conditions reached an agreement with its lenders regarding an extension of its senior credit facilities and (iii) that the company will initiate a written procedure regarding Bonava's outstanding bond loan to extend the maturity of the bond loan. Together, these measures are expected to provide the company with the necessary financial and operational flexibility to address the varying challenges in the different housing markets in which Bonava is active while establishing a lower financial risk profile in the company. The right issue is planned for March 2024.
On 3 January, Bonava sent notice that an Extra General Meeting regarding decision of the rights issue will be held on February 7.
In January, Lars Granlöf stepped down from the role of CFO of Bonava. At the same time, Lars Ingman was appointed interim CFO. On 10 January, Bonava received approval from the noteholders to amend the terms and conditions under its outstanding SEK 1,200 M
bond loan, which will take effect after the implementation of the right issue and the extension of bank financing. Bonava have finalised the negotiations with our lenders about the
extension of credit facilities by three years based on the main conditions that was set in December 2023 and an agreement will be signed shortly.
On 1 February 2024, Bonava announced revised financial targets. The target for the operating margin, at least 10 per cent by 2026, stands firm, while the net debt/equity ratio target will no longer apply. A new target has been added: return on equity is to be at least 15 per cent over time. The targets are based on a financial framework that is meant to balance the financial risks in the business. Equity/assets ratio is to exceed 30 per cent and the Group's net debt is not to exceed net project assets. This clarifies that investments in building rights or dividends to shareholders may only be made using shareholders' equity.
Unless otherwise stated, amounts are indicated in millions of Swedish kronor (SEK M). All comparative figures in this report refer to the corresponding period of the previous year. Rounding differences may occur.
Stockholm, 1 February 2024 Bonava AB (publ)
This report has not been reviewed by the company's auditors.
| Income statement | |||||
|---|---|---|---|---|---|
| Note | 2023 | 2022 | 2023 | 2022 | |
| Continuing operations | 1 | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Net sales | 2 | 4,989 | 5,664 | 13,269 | 13,987 |
| Production cost | –4,316 | –5,082 | –11,849 | –12,298 | |
| Gross profit | 672 | 582 | 1,421 | 1,689 | |
| Selling and administrative expenses | –209 | –231 | –760 | –831 | |
| Operating profit before items affecting comparability | 2 | 464 | 351 | 660 | 858 |
| Items affecting comparability | 3 | –37 | –56 | –1,279 | –56 |
| Operating profit after items affecting comparability | 2 | 427 | 295 | –619 | 802 |
| Financial income | |||||
| Financial expenses | –8 | 2 | 19 | 7 | |
| Net financial items | –124 –132 |
–78 –76 |
–537 –518 |
–200 –193 |
|
| Profit before tax | 2 | 294 | 219 | –1,137 | 609 |
| Tax on profit for the period | –5 | –63 | –5 | –169 | |
| Profit for the period¹⁾ | 289 | 157 | –1,143 | 441 | |
| Operations to be discontinued and discontinued operations | 8 | ||||
| Net profit from operations to be discontinued and dicontinued operations | |||||
| after tax | 52 | –841 | –194 | –743 | |
| Net profit for the period from operations to be discontinued and | |||||
| discontinued operations | 52 | –841 | –194 | –743 | |
| Continuing, operations to be discontinued and discontinued operations Net profit for the period from continuing, operations to be discontinued |
|||||
| and discontinued operations | 341 | –684 | –1,337 | –303 | |
| Data per share before and after dilution | |||||
| Profit for the period, SEK | 2.70 | 1.46 | –10.66 | 4.10 | |
| Cash flow from operating activitites, SEK | 4.44 | –0.68 | –3.15 | –30.25 | |
| Shareholders' equity, SEK | 61.58 | 74.49 | 61.58 | 74.49 | |
| 107.2 | 107.2 | 107.2 |
| Consolidated statement of comprehensive income |
|||||
|---|---|---|---|---|---|
| Note | 2023 | 2022 | 2023 | 2022 | |
| Profit for the period | 1 | Oct–Dec 341 |
Oct–Dec –684 |
Jan–Dec –1,337 |
Jan–Dec –303 |
| Items that have or may be reclassified to profit for the period | |||||
| Translation differences during the period in translation of foreign | |||||
| operations | –82 | 52 | –3 | 186 | |
| Translation differences during the period reclassified to income statement | 8 –38 |
–285 | –43 | 157 | |
| Other comprehensive income for the period | –120 | –233 | –47 | 344 | |
| Comprehensive income/loss for the period¹⁾ | 221 | –918 | –1,384 | 41 |
| balance sheet | |||
|---|---|---|---|
| Note 1, 4, 5 |
2023 31 Dec |
2022 31 Dec |
|
| ASSETS | |||
| Fixed assets | |||
| Investment properties | 9 | 239 | 262 |
| Other fixed assets | 1,119 | 708 | |
| Total fixed assets | 1,358 | 971 | |
| Current assets | |||
| Properties held for future development | 8,138 | 9,836 | |
| Ongoing housing projects | 6,966 | 12,091 | |
| Completed housing units | 1,593 | 799 | |
| Current receivables | 861 | 848 | |
| Cash and cash equivalents | 4 | 180 | 119 |
| Assets held for sale | 8 | 915 | |
| Total current assets | 17,738 | 24,607 | |
| TOTAL ASSETS | 19,097 | 25,579 | |
| SHAREHOLDERS' EQUITY | |||
| Shareholders' equity attributable to Parent Company shareholders | 6,596 | 7,979 | |
| Non-controlling interest | 5 | 5 | |
| Total shareholders' equity | 6,601 | 7,984 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 4 | 227 | 3,593 |
| Other non-current liabilities | 11 | 369 | |
| Non-current provisions | 1,214 | 1,022 | |
| Total non-current liabilities | 1,452 | 4,983 | |
| Current liabilities | |||
| Current interest-bearing liabilities | 4 | 5,594 | 3,532 |
| Other current liabilities | 5,450 | 8,165 | |
| Liabilities attributable to assets held for sale | 8 | 915 | |
| Total current liabilities | 11,044 | 12,612 | |
| Total liabilities | 12,496 | 17,595 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 19,097 | 25,579 |
| Shareholders' equity | Total | ||
|---|---|---|---|
| attributable to Parent | Non-controlling | shareholders' | |
| Company shareholders | interest | equity | |
| Opening shareholders' equity, 1 January 2022 | 8,318 | 5 8,322 |
|
| Comprehensive income for the period | 41 | 41 | |
| Dividend | –375 | –375 | |
| Performance-based incentive programme | –4 | –4 | |
| Closing shareholders' equity, 31 December 2022 | 7,979 | 5 7,984 |
|
| Comprehensive income for the period | –1,384 | –1,384 | |
| Dividend¹⁾ | |||
| Performance-based incentive programme | 0 | 0 | |
| Closing shareholders' equity, 31 December 2023 | 6,596 | 5 6,601 |
| Condensed consolidated | ||||
|---|---|---|---|---|
| cash flow statement | ||||
| 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
|
| OPERATING ACTIVITIES | ||||
| Profit before tax¹⁾ | 342 | –634 | –1,297 | –92 |
| Adjustments for items not included in cash flow | 61 | 1,002 | 1,665 | 768 |
| Tax paid | 41 | –25 | –139 | –149 |
| Cash flow from operating activities before change in working capital | 444 | 343 | 229 | 527 |
| Cash flow from change in working capital | ||||
| Sales of housing projects | 3,460 | 5,350 | 11,293 | 13,312 |
| Investments in housing projects Other changes in working capital |
–1,244 | –3,995 | –8,099 | –16,037 |
| Cash flow from changes in working capital | –2,184 31 |
–1,771 –417 |
–3,760 –567 |
–1,045 –3,769 |
| Cash flow from operating activities | 476 | –73 | –337 | –3,242 |
| INVESTMENT ACTIVITIES | ||||
| Sale of group companies | 502 | 1,239 | ||
| Other cash flow from investment activities | –37 | –32 | –185 | –104 |
| CASH FLOW BEFORE FINANCING ACTIVITIES | 940 | –105 | 716 | –3,345 |
| FINANCING ACTIVITIES | ||||
| Dividend | –188 | –375 | ||
| Increase in interest-bearing liabilities | 1,837 | 354 | 6,662 | 4,762 |
| Decrease in interest-bearing liabilities | –3,103 | –194 | –7,495 | –1,991 |
| Change in interest-bearing receivables | 2 | 91 | ||
| Cash flow from financing activities | –1,266 | –25 | –833 | 2,486 |
| CASH FLOW DURING THE PERIOD | –326 | –131 | –117 | –859 |
| Cash and cash equivalents at start of period | 462 | 492 | 303 | 1,066 |
| Exchange rate differences in cash and cash equivalents | 45 | –58 | –6 | 97 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD²⁾ | 180 | 303 | 180 | 303 |
2) The difference between cash and cash equivalents in the consolidated cash flow statement and the consolidated balance sheet corresponds to cash and cash equivalents in operations to be discontinued. Refer further to Note 8.
| Cash flow from operations to be discontinued and discontinued operations |
||||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |
| Net cash flow from operating activities | –33 | 28 | 360 | –581 |
| Net cash flow from investment activities | 502 | 3 | 1,248 | 28 |
| Net cash flow from financing activities | –188 | –130 | –375 | 518 |
| Net increase in cash and cash equivalents, operations to be discontinued and discontinued operations¹⁾ |
281 | –99 | 1,233 | –35 |
This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and recommendation RFR 1 Supplementary Accounting Rules for Groups from the Swedish Financial Reporting Board. This Interim Report covers pages 1–33, and pages 1–15 are thereby an integrated part of this financial report. The accounting policies applied in the preparation of this Interim Report apply to all periods and comply with the accounting policies presented in Note 1 Significant accounting policies in Bonava's 2022 Annual Report, pages 73–77. The Annual Report is available at bonava.com.
Non-current assets held for sale and discontinued operations In conjunction with Bonava divesting its operation in Norway, and announcing its intention to divest its operations in St. Petersburg, the criteria were met for application of IFRS 5 Non-current assets held for sale and discontinued operations. Operations to be discontinued consists of significant operations that have been divested, or comprises a group of divestments that are being held for sale.
and the fair value less selling costs. Earnings after tax from operations to be discontinued and discontinued operations are recognised on their own line in the income statement. Transactions between continuing operations and operations to be discontinued or discontinued operations have been eliminated. Historical figures have been restated in accordance with the same principles. In accordance with IFRS, balance sheets for previous years are not restated.
Properties held for future development refer to Bonava's holdings of land and building rights for future residential development and capitalised project development costs. The valuation of properties held for future development takes into consideration whether the properties will be developed or sold. The valuation of land and building rights for future development is based on a capital investment appraisal. This appraisal is updated annually (as well as when market trends or other circumstances so require) with regard to the established sales price and cost trend. In the event a positive contribution margin from the development cannot be obtained with regard to normal contract profit, an impairment loss is recognised. Development expenses related to land over which Bonava has control is capitalised.
| consists of significant operations that have been divested, or comprises a group of divestments that are being held for sale. The significance of a group of assets and liabilities being classified as being held for sale is that their carrying amount will be recovered primarily through divestment, and not through use. All assets included in this group are presented as a separate item in the balance sheet, and all of the Group's liabilities are presented as a separate item among liabilities. The Group is measured at the lower of the carrying amount |
circumstances so require) with regard to the established sales price and cost trend. In the event a positive contribution margin from the development cannot be obtained with regard to normal contract profit, an impairment loss is recognised. Development expenses related to land over which Bonava has control is capitalised. |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NOTE 2 Reporting of operating segments |
||||||||||
| Other | ||||||||||
| Oct–Dec 2023 | Germany | Sweden | Finland | Baltics | operations ¹⁾ | Total | ||||
| Net sales, consumers | 2,490 | 481 | 152 | 331 | 3,454 | |||||
| Net sales, investors | 659 | 369 | 491 | 1,520 | ||||||
| Net sales, land | 3 | 4 | 3 | 10 | ||||||
| Other revenue | 1 | 4 | 4 | |||||||
| Operating profit/loss before items affecting comparability | 386 | 60 | 45 | 38 | –66 | 464 | ||||
| Items affecting comparability | –35 | 5 | –7 | –37 | ||||||
| Operating profit/loss after items affecting comparability | 351 | 65 | 45 | 38 | –73 | 427 | ||||
| Net financial items | –132 | |||||||||
| Profit before tax | 294 | |||||||||
| Capital employed | 6,936 | 3,189 | 789 | 1,409 | 98 | 12,422 | ||||
| Oct–Dec 2022 | Germany | Sweden | Finland | Baltics | Other operations ¹⁾ |
Total | ||||
| Net sales, consumers | 2,702 | 441 | 540 | 382 | 1 | 4,066 | ||||
| Net sales, investors | 604 | 303 | 229 | 453 | 1,588 | |||||
| Net sales, land | 3 | 3 | ||||||||
| Other revenue | 3 | 3 | 7 | |||||||
| Operating profit/loss before items affecting comparability | 383 | –80 | 49 | 60 | –62 | 351 | ||||
| Items affecting comparability | –32 | –20 | –4 | –56 | ||||||
| Operating profit/loss after items affecting comparability | 351 | –100 | 49 | 60 | –66 | 295 | ||||
| Net financial items | –76 | |||||||||
| Profit before tax | 219 | |||||||||
| Capital employed | 7,074 | 3,825 | 974 | 1,085 | 2,610 | 15,568 | ||||
| Other | ||||||||||
| Jan–Dec 2023 | Germany | Sweden | Finland | Baltics | operations ¹⁾ | Total | ||||
| Net sales, consumers | 5,849 | 1,819 | 872 | 768 | 9,308 | |||||
| Net sales, investors | 1,404 | 814 | 1,654 | 3,871 | ||||||
| Net sales, land | 30 | 44 | 4 | 78 | ||||||
| Other revenue | 1 | 8 | 1 | 1 | 1 | 12 | ||||
| Operating profit/loss before items affecting comparability | 628 | 77 | 107 | 68 | –219 | 660 | ||||
| Items affecting comparability | –879 | –303 | –90 | –7 | –1,279 | |||||
| Operating profit/loss after items affecting comparability | –251 | –226 | 17 | 68 | –227 | –619 | ||||
| Net financial items | –518 | |||||||||
| Profit before tax | –1,137 | |||||||||
| Capital employed | 6,936 | 3,189 | 789 | 1,409 | 98 | 12,422 |
| Other | ||||||
|---|---|---|---|---|---|---|
| Jan–Dec 2022 | Germany | Sweden | Finland | Baltics | operations ¹⁾ | Total |
| Net sales, consumers | 5,626 | 1,997 | 1,175 | 831 | 102 | 9,731 |
| Net sales, investors | 2,159 | 704 | 565 | 752 | 4,180 | |
| Net sales, land | 39 | 19 | 58 | |||
| Other revenue | 5 | 1 | 1 | 11 | 18 | |
| Operating profit/loss before items affecting comparability | 904 | –54 | 88 | 108 | –188 | 858 |
| Items affecting comparability | –32 | –20 | –4 | –56 | ||
| Operating profit/loss after items affecting comparability | 872 | –74 | 88 | 108 | –192 | 802 |
| Net financial items | –193 | |||||
| Profit before tax | 609 | |||||
| 3,825 | 974 | 1,085 | 2,610 | 15,568 |
NOTE 3 Specification of items affecting comparability
Items affecting comparability in 2023 pertain to impairment of properties held for future development, capitalised development expenses, negative change in value of one B2M project and restructuring, and total SEK -1,279 M. For further information on which segments they pertain to, refer to Note 2.
After a strategic review of its operations, Bonava has initiated further restructuring in the third quarter of 2023 in Germany, Sweden and Finland. The purpose of these restructuring efforts is to create a lower cost base, thereby improving future cash flows and providing conditions for increased flexibility. Costs of SEK - 435 pertaining to restructuring were recognised in 2023. Of this total amount, SEK -402 M was attributable to Germany, SEK -20 M to Sweden, SEK -7 M to Finland and SEK -7 M to other operations.
Bonava has reviewed its building rights portfolio, which resulted in an impairment of properties held for future development totalling SEK -686 M, of which impairment of land of SEK -442 M in Germany, SEK -160 M in Sweden and SEK -4 M in Finland. Additionally, capitalised project development costs were impaired by SEK -80 M in Finland. This review also resulted in a value adjustment of SEK -123 M pertaining to a Build to Manage project in Sweden; refer further to Note 9. Additionally, a project in Germany with completed housing units was impaired by SEK -35 M in the fourth quarter.
Items affecting comparability for full-year 2022 totalled SEK -56 M and pertained to costs resulting from organisational changes (severance pay) decided on in Sweden, Germany and central divisions. In total, net items affecting comparability of SEK -56 M were distributed as follows: SEK -20 M in Sweden, SEK -32 M in Germany and SEK -4 M in Other (central divisions). Oct–Dec Oct–Dec Jan–Dec Jan–Dec
| Germany with completed housing units was impaired by SEK -35 M | ||||||||
|---|---|---|---|---|---|---|---|---|
| in the fourth quarter. | ||||||||
| Items affecting comparability for full-year 2022 totalled SEK -56 | ||||||||
| M and pertained to costs resulting from organisational changes | ||||||||
| (severance pay) decided on in Sweden, Germany and central | ||||||||
| divisions. In total, net items affecting comparability of SEK -56 M | ||||||||
| were distributed as follows: SEK -20 M in Sweden, SEK -32 M in | ||||||||
| Germany and SEK -4 M in Other (central divisions). | ||||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Write down of land | –606 | |||||||
| Value change of B2M-Project | –123 | |||||||
| Write down of capitalized | ||||||||
| development costs | –35 | –115 | ||||||
| Organizational changes | –2 | –56 | –435 | –56 | ||||
| Sum of items affecting comparability | –37 | –56 | –1,279 | –56 |
| NOTE 4 Specification of net debt |
|||
|---|---|---|---|
| 2023 31 Dec |
2022 31 Dec |
||
| Non-current interest-bearing receivables¹⁾ | 582 | 2 | |
| Current interest-bearing receivables¹⁾ | 108 | 18 | |
| Cash and cash equivalents | 180 | 303 | during the period. |
| Interest-bearing receivables | 870 | 324 | |
| Non-current interest-bearing liabilities | 227 | 4,050 | SEK 1,200 M (1,200). |
| Current interest-bearing liabilities | 5,594 | 3,533 | |
| Interest bearing liabilities²⁾ | 5,821 | 7,583 | |
| Net debt | 4,951 | 7,259 | |
| Of which St. Petersburg³⁾ | 275 | ||
| 1) Vendor notes that have been issued to the buyer of the Norwegian operations are included in long-term and current interest-bearing receivables. See further Note |
1) Vendor notes that have been issued to the buyer of the Norwegian operations are included in long-term and current interest-bearing receivables. See further Note 8.
Since Bonava appoints a majority of the Board members in tenantowner associations in Sweden and housing companies in Finland, issues guarantees and provides credit to or borrowing on behalf of tenant-owner associations and housing companies, Bonava exercises a controlling influence and therefore consolidates tenantowner associations and housing companies in full. As a consequence, these debts are included in Bonava's net debt. Cash and cash equivalents 13 17
| Since Bonava appoints a majority of the Board members in tenant owner associations in Sweden and housing companies in Finland, issues guarantees and provides credit to or borrowing on behalf of tenant-owner associations and housing companies, Bonava exercises a controlling influence and therefore consolidates tenant owner associations and housing companies in full. As a consequence, these debts are included in Bonava's net debt. |
equal to the fair value. | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Share of net debt pertaining to tenant-owner associations and | |||||||||
| housing companies | 2023 31 Dec |
2022 31 Dec |
|||||||
| Cash and cash equivalents | 13 | 17 | |||||||
| Gross debt | 816 | 1,767 | |||||||
| Net debt in tenant-owner associations and housing companies |
803 | 1,751 | |||||||
| The Group's financing framework The table below specifies the Group's financing facilities. In addition, there is SEK 64 M in unutilised contractual credit frames |
being approved. | ||||||||
| for projects in Swedish tenant-owner associations. | |||||||||
| Financing Overdraft facilities Bond |
Maturity, year <365 days <365 days |
Amount 649 1,200 |
Utilised 1,200 |
Unutilised 649 |
|||||
| Loan, NOK | <365 days | 495 | 495 |
| Net debt in tenant-owner associations and | ||||||
|---|---|---|---|---|---|---|
| The Group's financing framework The table below specifies the Group's financing facilities. In |
being approved. | |||||
| addition, there is SEK 64 M in unutilised contractual credit frames for projects in Swedish tenant-owner associations. |
||||||
| Financing | Maturity, year | Amount | Utilised | Unutilised | Pledged assets | |
| Overdraft facilities | <365 days | 649 | 649 | For own liabilities | ||
| Bond | <365 days | 1,200 | 1,200 | |||
| Loan, NOK | <365 days | 495 | 495 | |||
| Loan, EUR | <365 days | 889 | 889 | |||
| RCF, syndicated | <365 days | 3,000 | 1,689 | 1,311 | ||
| RCF/OP | <365 days | 333 | 167 | 166 | ||
| Loan, EUR | <365 days | 556 | 556 | |||
| Total | 7,122 | 4,996 | 2,126 | |||
| Covenants in loan agreements | ||||||
The terms and conditions in Bonava's loan agreements with banks and the Swedish Export Credit Corporation are linked to two covenants. The first is the equity/assets ratio, or shareholders' equity in relation to total assets, which is not to fall below 25 per cent. According to the calculation method with the adjustments found in the loan agreements, the equity/assets ratio was 34.9 per cent. The second covenant is the interest coverage ratio, or earnings before interest, taxes, depreciation, and amortisation in relation to financial net. For the third and fourth quarters of 2023, Bonava came to an agreement with its creditors to reverse restructuring costs of SEK 433 M in the calculation. Under the loan agreements, the interest coverage ratio is not to fall below 2.0x. At 31 December 2023, this figure was 1.8x, which the creditors have agreed to. These credits are classified as short-term as of 31 December 2023. Other terms will apply in the new credit agreement.
In the table below, disclosures are made concerning how fair value is determined for the financial instruments that are continuously measured at fair value in Bonava's balance sheet. When determining fair value, assets have been divided into the following three levels. No transfers have been made between the levels during the period. 31 Dec 31 Dec
| is determined for the financial instruments that are continuously measured at fair value in Bonava's balance sheet. When determining fair value, assets have been divided into the following three levels. No transfers have been made between the levels during the period. At level 1, Bonava has one outstanding bond loan valued at SEK 1,200 M (1,200). |
|||
|---|---|---|---|
| Level 2 derivative instruments comprise currency swaps where the measurement at fair value of currency-forward contracts is based on published forward rates in an active market. Bonava has no financial instruments in level 3. |
|||
| 2023 31 Dec |
2022 31 Dec |
||
| Derivatives | 137 | 17 | |
| Total assets | 137 | 17 | |
| Derivatives | 25 | 112 |
The fair value of non-current and current interest-bearing liabilities differs only marginally from the carrying amount and is therefore not recognised separately in this interim report. For financial instruments recognised at amortised cost, the carrying amount of accounts receivable, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities is considered equal to the fair value. 31 Dec 31 Dec
Bonava has investment commitments for the purchase of building rights, which are contractual and conditional and have not yet been recognised as part of the financial statements. As of 31 December, the total value of these commitments was SEK 1.4 Bn (SEK 2.1 Bn as of 30 September). The majority of the change in the quarter pertains to land that was taken into possession. The investments are expected to be adjusted by SEK 0.7 Bn in 2024, SEK 0.3 Bn in 2025 and SEK 0.4 Bn in 2026 and later, provided that the covenants in the agreement are met. The agreements are often conditional on building permits being received or zoning plans being approved. 31 Dec 31 Dec
| being approved. | pertains to land that was taken into possession. The investments are expected to be adjusted by SEK 0.7 Bn in 2024, SEK 0.3 Bn in 2025 and SEK 0.4 Bn in 2026 and later, provided that the covenants in the agreement are met. The agreements are often conditional on building permits being received or zoning plans |
|||||
|---|---|---|---|---|---|---|
| NOTE 7 | Pledged assets and contingent liabilities | |||||
| 2023 | 2022 | |||||
| Pledged assets | ||||||
| For own liabilities | ||||||
| Property mortgages | 235 | 990 | ||||
| Other pledged assets | 13 | 11 | ||||
| Total pledged assets | 249 | 1,001 | ||||
| Own contingent liabilities | Surety and guarantee obligations | |||||
| Counter guarantee to external guarantors | 600 | 1,576 | ||||
| Contingent liablities¹⁾ | 358 | 236 | ||||
| Other guarantees and contingent liabilities²⁾ | 803 | 2,083 | ||||
| Total surety and guarantee obligations | 1,761 | 3,895 |
2) The undertakings pertaining to divested companies to be taken over by the purchaser in accordance with agreements.
Property mortgages of 235 SEK M consist of collateral on behalf of Finnish housing companies. On 31 December 2022, the property mortgages amounted to SEK 990 M, of which SEK 871 M pertained to Finnish housing companies and SEK 119 M pertained to the operations in St. Petersburg.
Counter guarantees pertaining to guarantees that constitute collateral for amounts paid to tenant-owner associations formed by Bonava Sverige AB comprise SEK 600 M (1,576). Deposit guarantees are valid until one year after the final acquisition cost of the tenant-owner association's building has been established. Bonava AB's commitment is limited to SEK 600 M.
NOTE 8 Operations to be discontinued and discontinued operations
Bonava announced on 3 March 2022 that the operations in St. Petersburg would be wound-down. Since then, Bonava has reviewed various strategic alternatives to wind-down operations, with one alternative being a responsible divestment of the operations. On 7 October 2022, Bonava announced that an agreement to sell the operations in St. Petersburg had been signed. Consequently, the operations have been recognised as operations held for sale since the third quarter of 2022.
The intended buyer of the operations in St. Petersburg did not receive the required approvals from the Russian authorities, which is why the sales agreement was cancelled. After the contract was cancelled, a decision was made to impair the net assets of the operations in St. Petersburg. This totalled SEK 877 M and was reported under profit for the period from operations to be discontinued in the fourth quarter of 2022.
The decision to leave St. Petersburg stands firm, and on 31 May 2023 Bonava signed an agreement with residential developer RBI Group to sell the operations.
As of 18 October 2023, Bonava has signed an agreement with a new buyer, Star Development LLC, for the divestment of its operations in St. Petersburg for EUR 50 M (SEK 578 M) and received the purchase price at the same time. In conjunction with the conclusion of the transaction, Bonava has chosen to terminate the agreement with RBI Group that was signed on 31 May 2023. This is because the counterparty did not receive acquisition permits from the special committee established to oversee business transfers within the contractual time frame under the agreement. The new buyer, Star Development LLC, has received this permit, and conclusion of the transaction was conditional on the approval of the Russian competition authority.
In the fourth quarter, the Russian competition authorities approved the divestment of Bonava's operations in St. Petersburg and controlling influence over the operations thereby transferred to the buyer.
The net assets in St. Petersburg were valued at SEK 564 M, corresponding to the transaction price of EUR 50 M (SEK 578 M), which was received on 18 October less selling costs. Total earnings from operations to be discontinued was SEK 602 M (-808), of which SEK 38 M pertained to the liquidation of currency translation reserves.
| reserves. | ||
|---|---|---|
| Bonava AB has undertakings of SEK 74 M (98) for land | ||
| investments in St. Petersburg that will be taken over by the buyer. | ||
| Adjusted historical comparative figures were published on | Purchase price received | |
| Bonava's website, https://www.bonava.com/en/investor | ||
| relations/financial-information. | ||
| Divested assets, St. Petersburg | ||
| Fixed assets | 0 | |
| Properties held for future development | 618 | |
| Other current assets | 71 | |
| Cash and cash equivalents | 77 | |
| Total assets | 765 | |
| Provisions | 40 | |
| Non-current liabilities | 79 | |
| Advances from customers | 15 | |
| Other current liabilities | 67 | |
| Total liabilities | 201 | |
| Net assets | 564 | |
| Pledged assets and contingent liabilities | ||
| Pledged assets¹⁾ | 129 |
1) Pertains to property mortgages on properties owned by Bonava St. Petersburg.
| Profit and cash flow from operations to be discontinued, St. | ||
|---|---|---|
| Petersburg | ||
| 2023 Jan-okt |
2022 Jan–Dec |
|
| Net sales | 682 | 526 |
| Production cost | –499 | –365 |
| Gross profit | 183 | 161 |
| Selling and administrative expenses | –25 | –70 |
| Operating profit | 157 | 91 |
| Financial income | ||
| Financial expenses | –15 | 22 –23 |
| Net financial items | –15 | –1 |
| Profit before tax | 142 | 90 |
| Tax on profit for the period | –28 | –21 |
| Profit from operations to be discontinued | 114 | 69 |
| Costs to sell | –14 | |
| Write-down of net assets | 450 | –877 |
| Profit for the period from operations to be | ||
| discontinued | 602 | –808 |
| Translation differences for operations to be | ||
| discontinued | –38 | 142 |
| Other comprehensive income from operations to be discontinued |
–38 | 142 |
| Net cash flow from operating activities | 307 | –472 |
| Net cash flow from investment activities | 502 | 9 |
| Net cash flow from financing activities | –342 | 363 |
| Net increase in cash and cash equivalents from the subsidiary |
467 | –100 |
| Cash | 578 | |
|---|---|---|
| Total sales proceeds | 578 | |
| Reported value of net assets sold | 564 | |
| Profit before taxes and reclassification of currency translation reserve |
14 | |
| Reclassification of currency translation reserve | 38 | |
| Profit on sale after tax | 52 |
On 30 June, Bonava signed the agreement to divest its operations in Norway. The buyer is the Union Residential Development property fund. The purchase price totalled SEK 1,532 M, of which SEK 765 M was paid in cash upon completion of the transaction, and the remainder – SEK 767 M – was paid via vendor notes. The remaining amount will be paid over time as the buyer sells the completed housing units and hands them over to customers. In the transaction currency, the purchase price totalled NOK 1,515 M.
In conjunction with Bonava signing agreements on divesting its operations in Norway, the criteria were met for application of IFRS 5 Non-current assets held for sale and discontinued operations. The discontinued operations in Norway including capital gain from the divestment were recognised separately in the consolidated income statement, on a separate line under the heading "Operations to be discontinued". Previous periods in the consolidated income statement have been restated in accordance with the same principles. Intra-Group transactions between continuing operations and discontinued operations have been eliminated. Adjusted comparative figures have been published on Bonava's website. As of the date of divestment, when controlling interest transferred to the buyer, assets and liabilities attributable to the operations in Norway ceased to be recognised as part of the Group's total assets and liabilities.
Financial information regarding the discontinued operations for the period up until the date of divestment are presented below.
The vendor notes will be paid in pace with the conclusion of the property projects in the Norwegian operations. The majority of the reversals are expected to be paid in 2024 and 2025.
Vendor notes are recognised in the balance sheet as a noncurrent financial asset measured at amortised cost using the effective rate method. As of 30 June, the financing was measured at SEK 666 M; the nominal value before discounting amounted to SEK 767 M, and interest income will be routinely recognised as financial income up until the vendor notes fall due.
At 31 December 2023, guarantee commitments remain for the Norwegian operations in the form of counter guarantees in relation to external guarantors and direct guarantee commitments at an aggregate total of SEK 729 M, and these will be taken over by the buyer. Upon completion of the transaction, the remaining guarantee commitments totalled SEK 967 M.
Adjusted historical comparative figures were published on Bonava's website, https://www.bonava.com/en/investorrelations/financial-information.
| Financial information regarding discontinued operations, | ||
|---|---|---|
| Norway | ||
| 2023 Jan–jun |
2022 Jan–Dec |
|
| Net sales | 627 | 1,719 |
| Production cost | –538 | –1,551 |
| Gross profit | 89 | 168 |
| Selling and administrative expenses | ||
| Operating profit | –24 65 |
–76 92 |
| Financial income | 1 | 1 |
| Financial expenses | –1 | –6 |
| Net financial items | –5 | |
| Profit before tax | ||
| Tax on profit for the period | 65 –6 |
87 –21 |
| Profit from discontinued operations net of tax | 59 | 66 |
| Costs to sell | –30 | |
| Loss on sale, net of tax | ||
| Profit for the period from discontinued | –824 –795 |
66 |
| Translation differences for discontinued | ||
| operations | –5 | 16 |
| Other comprehensive income from | ||
| discontinued operations | –5 | 16 |
| Net cash flow from operating activities | 53 | –109 |
| Net cash flow from investment activities | 746 | 19 |
| Net cash flow from financing activities | –33 | 155 |
| Net increase in cash and cash equivalents from the subsidiary |
766 | 65 |
| Disclosures on divestment of subsidiary, Norway | ||
| Sales proceeds received or to be received | ||
| Cash | 441 | |
| Discounting of vendornote | –101 | |
| Total sales proceeds | 340 | |
| Reported value of net assets sold | –1,119 |
| Net increase in cash and cash equivalents from | |
|---|---|
| Disclosures on divestment of subsidiary, Norway | |
| Sales proceeds received or to be received | |
| Cash | 441 |
| Discounting of vendornote | –101 |
| Total sales proceeds | 340 |
| Reported value of net assets sold | –1,119 |
| Profit before tax and reclassification of currency | |
| translation reserve | –779 |
| Reclassification of currency translation reserve | –45 |
| Divested assets, Norway | |||||
|---|---|---|---|---|---|
| Goodwill | 56 | ||||
| Fixed assets | 50 | ||||
| Properties held for future development | 2,529 | ||||
| Other current assets | 37 | ||||
| Cash and cash equivalents | 28 | ||||
| Total assets | 2,700 | ||||
| Provisions | 53 | ||||
| Non-current liabilities | 1,242 | ||||
| Advances from customers | 30 | ||||
| Other current liabilities | 257 | ||||
| Total liabilities | 1,582 | ||||
| Net assets | 1,119 | according to IFRS 13. | |||
| Pledged assets and contingent liabilities | |||||
| Pledged assets¹⁾ | 202 | ||||
| Pledged assets and contingent liabilities | |||
|---|---|---|---|
| Pledged assets¹⁾ | 202 | ||
| 1) Pertains to security for loans in J/V Solberg Öst. | |||
| Operations to be discontinued and discontinued operations, | |||
| total for Norway and St. Petersburg | |||
| 2023 | 2022 | ||
| Profit for the period from operations to be discontinued and discontinued operations, total |
–194 | –743 | |
| Translation differences for operations to be discontinued and discontinued operations, total |
–43 | 157 | |
| Net increase in cash and cash equivalents from operations to be discontinued and discontinued operations, total |
1,233 | –35 |
Investment properties are measured at fair value in accordance with IAS 40. Investment properties are initially recognised at cost, which includes fees directly attributable to the acquisition. A rental housing project in Sweden was suspended in the second quarter of 2023. The same project was revalued by SEK 123 M during the period and since 30 September 2023 has been classified as land held for future development, and is therefore measured as a building right. At 31 December 2023, fair value was deemed to correspond to the carrying amount, which is why no unrealised change in value was recognised. Classification is at level 3 according to IFRS 13. 31 Dec 31 Dec Investments 140 102
| 2023. The same project was revalued by SEK 123 M during the period and since 30 September 2023 has been classified as land |
||||
|---|---|---|---|---|
| held for future development, and is therefore measured as a | ||||
| building right. At 31 December 2023, fair value was deemed to | ||||
| correspond to the carrying amount, which is why no unrealised | ||||
| change in value was recognised. Classification is at level 3 | ||||
| according to IFRS 13. | ||||
| 2023 | 2022 | |||
| Fair values at start of period | 262 | |||
| Investments | 140 | 102 | ||
| Value change | –123 | |||
| Reclassification | –36 | 156 | ||
| Translation differences for the year | –4 | 5 | ||
| Fair value at end of period | 239 | 262 | ||
| 2023 | 2022 | |||
| Jan–Dec | Jan–Dec | NOTE 10 Properties held for future development |
||
| The value of the building rights portfolio was assessed in the third | ||||
The value of the building rights portfolio was assessed in the third quarter. Our building rights are recognised as current assets and thus recorded at the lower of market value and cost per asset. 83 per cent of the carrying amount was assessed by independent valuation institutions. The market value was estimated through analysis of discounted future cash flows as well as an external assessment. A discount factor of 12.5 per cent was applied for Group-wide assessment. Investment that were already partially ongoing were assessed internally using the cash-flow method. The review that was conducted resulted in SEK 686 M in impairments of properties held for future development.
The estimated value of the building rights at the end of the third quarter of 2023 after impairments totalled SEK 9.5 Bn, corresponding to a surplus value of SEK 1.2 Bn.
In addition, some discrepancies remained where the external appraisal indicated that the market value of the Group's properties held for future development was lower than the carrying amount. Based on an overall assessment of the value of each property held for future development, which was made based on the value that Bonava believes can be generated upon future sale of housing units as part of its normal operations, there was no need for further impairment as of 30 September 2023. A new assessment of the building rights portfolio is planned for the third quarter of 2024. As of 31 December 2023, there was no need for additional material impairments in the Group.
The Parent Company comprises the operations of Bonava AB (publ). Net sales for the company totalled SEK 213 M (269). Loss after financial items was SEK -1,109 M (345). The Group company Bonava Norge AS was divested at a loss of SEK 812 M in the second quarter of 2023. The capital loss included selling costs of SEK -30 M. Receivables from the Group's German company were impaired in the third quarter of 2023. The impairment was attributable to previously recognised anticipated dividends that will not be received, which is why the transaction was reversed. The effect will be that profit/loss from participations in Group companies has been reduced by SEK 390 M and the receivables from subsidiaries have decreased by a corresponding amount. In the third quarter, a capital contribution of SEK 330 M was paid to the Group company, Bonava Sverige AB, and an impairment of participations in Group companies pertaining to the holding in Bonava Sverige AB was recognised by a corresponding amount. In the fourth quarter, an additional capital contribution of SEK 150 M was provided to the Group company, Bonava Sverige AB, which was also impaired in its entirety. The operations in St. Petersburg were divested in the fourth quarter of 2023. The capital gains of SEK 564 M from the transaction correspond to the transaction price received of SEK 578 M less selling costs, since the shares were valued at SEK 0 at the time of the transaction. Bonava AB's interest-bearing liabilities were classified as current at 31 December 2023; refer to "Covenants in loan agreements" in Note 4. INCOME STATEMENT 1 Jan–Dec Jan–Dec Net sales 213 269 Selling and administrative expenses –378 –456
| Sverige AB, which was also impaired in its entirety. The operations in St. Petersburg were divested in the fourth quarter of 2023. The capital gains of SEK 564 M from the transaction correspond to the transaction price received of SEK 578 M less selling costs, since the shares were valued at SEK 0 at the time of the transaction. Bonava AB's interest-bearing liabilities were classified as current at 31 December 2023; refer to |
|||
|---|---|---|---|
| "Covenants in loan agreements" in Note 4. | |||
| Note | 2023 | 2022 | |
| Net sales | 213 | 269 | |
| Selling and administrative expenses | –378 | –456 | |
| Operating loss | –165 | –187 | |
| Profit from participations in Group companies | –1,119 | 353 | |
| Financial income | 646 | 320 | |
| Financial expenses | –471 | –140 | |
| Profit after financial items | –1,109 | 345 | |
| Appropriations | –170 | –45 | |
| Profit before tax | –1,279 | 300 | |
| Tax on profit for the period | –3 | 21 | |
| Profit for the period | –1,282 | 321 | |
| Since there are no transactions to recognise in Other comprehensive income, the profit for the period corresponds to comprehensive income. | |||
| Note | 2023 | 2022 | |
| BALANCE SHEET | 1, 2 | 31 Dec | 31 Dec |
| Assets | |||
| Fixed assets | 2,766 | 2,632 | |
| Current assets | 9,554 | 10,960 | |
| Total assets | 12,320 | 13,592 | |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 6,127 | 7,409 | |
| Provisions | 14 | 11 | |
| Non-current liabilities | 0 | 3,174 | |
| Current liabilities | 6,179 | 2,999 | |
| Total shareholders' equity and liabilities | 12,320 | 13,592 |
The company has prepared its Interim Report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
The accounting policies applied in the preparation of this Interim Report apply to all periods and comply with the accounting policies presented in Note 1 Significant accounting policies in Bonava's 2022 Annual Report, pages 73–77 and 102. The Annual Report is available at bonava.com.
| NOTE 2 Pledged assets and contingent liabilities |
||
|---|---|---|
| 2023 | 2022 | |
| 31 Dec | 31 Dec | |
| Counter guarantee to external guarantors | 6,528 | 9,898 |
| Guarantees for project-specific financing | 432 | 1,288 |
| Guarantees for Group companies | 1,723 | 3,687 |
| Other guarantees¹⁾ | 803 | 2,083 |
| Other pledged assets | 13 | 11 |
| Total | 9,499 | 16,966 |
| Share of pledged assets and contingent liabilities on behalf of tenant owner associations and housing companies |
2023 | 2022 |
| 31 Dec | 31 Dec | |
| Counter guarantee to external guarantors²⁾ | 600 | 1,576 |
| Share of pledged assets and contingent liabilities on behalf of tenant owner associations and housing companies |
||
|---|---|---|
| 31 Dec | 31 Dec | |
| Counter guarantee to external guarantors²⁾ | 600 | 1,576 |
| Guarantees for project-specific financing | 432 | 1,287 |
| Total | 1,032 | 2,863 |
| 1) Guarantee pertaining to discontinued operations that are to be taken over by the buyer in accordance with agreements. |
||
| 2) Counter guarantees pertain to guarantees that constitute collateral for amounts paid |
2) Counter guarantees pertain to guarantees that constitute collateral for amounts paid to tenant-owner associations formed by Bonava Sverige AB. Deposit guarantees are valid until one year after the final acquisition cost of the tenant-owner association's building has been established. Bonava AB's commitment is limited to SEK 600 M.
| Sector-related key figures for the Group |
||||
|---|---|---|---|---|
| No. unless otherwise stated | 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
| Building rights | 28,900 | 29,400 | 28,900 | 29,400 |
| Of which, off-balance sheet building rights | 8,200 | 11,350 | 8,200 | 11,350 |
| Housing development for consumers | ||||
| Housing units sold | 356 | 231 | 1,242 | 1,682 |
| Sales value of housing units sold, SEK M | 1,376 | 911 | 4,795 | 6,096 |
| Production starts | 394 | 160 | 1,082 | 1,428 |
| Housing units in ongoing production | 2,153 | 3,871 | 2,153 | 3,871 |
| Sales rate for ongoing production, % | 36 | 51 | 36 | 51 |
| Reservation rate for ongoing production, % | 3 | 1 | 3 | 1 |
| Completion rate for ongoing production, % | 61 | 56 | 61 | 56 |
| Completed housing units not recognised in profit | 550 | 176 | 550 | 176 |
| Housing units for sale (ongoing and completed) | 1,875 | 2,042 | 1,875 | 2,042 |
| Housing units recognised in profit Value of sold housing units, not yet recognised in profit, SEK M |
900 | 1,099 | 2,419 | 2,744 |
| 4,363 | 8,220 | 4,363 | 8,220 | |
| Housing development for investors | ||||
| Housing units sold | 374 | 251 | 854 | |
| Sales value of housing units sold, SEK M | 234 | 1,041 | 802 | 2,162 |
| Production starts whereof investment properties |
374 | 251 | 1,085 | |
| Housing units in ongoing production | 902 | 231 2,627 |
902 | 231 2,627 |
| whereof investment properties | 426 | 426 | ||
| Sales rate for ongoing production, %¹⁾ | 100 | 100 | 100 | 100 |
| Completion rate for ongoing production, % | 45 | 47 | 45 | 47 |
| Housing units recognised in profit | 544 | 569 | 1,550 | 1,625 |
| Value of sold housing units, not yet recognised in profit, SEK M | 2,766 | 5,746 | 2,766 | 5,746 |
| 1) Excluding investment properties. | ||||
| 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
|
| Number of housing units in production for consumers | ||||
| Housing units in ongoing production at start of period | 2,794 | 4,892 | 3,871 | 5,271 |
| Production starts | 394 | 160 | 1,082 | 1,428 |
| Housing units recognised in profit | –900 | –1,099 | –2,419 | –2,744 |
| Decrease (+)/increase (–) in completed housing units not recognised in profit |
–135 | –82 | –381 | –84 |
| Housing units in ongoing production for consumers at end of period | 2,153 | 3,871 | 2,153 | 3,871 |
| Number of housing units in production for investors | ||||
| Housing units in ongoing production at start of period | 1,641 | 2,823 | 2,627 | 3,168 |
| Change in opening value¹⁾ | –231 | |||
| Production starts | 374 | 251 | 1,085 | |
| Completed investment properties | –195 | –195 | ||
| Housing units recognised in profit | –544 | –569 | –1,550 | –1,625 |
| Housing units in ongoing production for investors at end of period | 902 | 2,627 | 902 | 2,627 |
| Sector-related key figures | ||||
|---|---|---|---|---|
| for the segments | ||||
| 2023 | 2022 | 2023 | 2022 | |
| Germany | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| no. unless otherwise stated | ||||
| Building rights | 9,000 | 9,800 | 9,000 | 9,800 |
| of which, off-balance sheet building rights | 1,600 | 3,100 | 1,600 | 3,100 |
| Housing development for consumers | ||||
| Net sales, SEK M | 2,490 | 2,702 | 5,849 | 5,626 |
| Housing units sold | 222 | 139 | 724 | 744 |
| Sales value of housing units sold, SEK M | 1,111 | 742 | 3,690 | 3,825 |
| Production starts | 263 | 59 | 610 | 651 |
| Housing units in ongoing production | 1,446 | 2,033 | 1,446 | 2,033 |
| Sales rate for ongoing production, % | 44 | 51 | 44 | 51 |
| Completed housing units not recognised in profit | 100 | 35 | 100 | 35 |
| Housing units for sale (ongoing and completed) | 894 | 1,015 | 894 | 1,015 |
| Housing units recognised in profit | 475 | 508 | 1,125 | 1,126 |
| Housing development for investors | ||||
| Net sales, SEK M | 659 | 604 | 1,404 | 2,159 |
| Housing units sold | 154 | 176 | 228 | |
| Sales value of housing units sold, SEK M | 203 | 452 | 637 | 723 |
| Production starts | 154 | 176 | 228 | |
| Housing units in ongoing production | 484 | 693 | 484 | 693 |
| Sales rate for ongoing production, % | 100 | 100 | 100 | 100 |
| Housing units recognised in profit | 166 | 192 | 385 | 762 |
| Average no. of employees during the financial year | 836 | 932 | ||
| Sweden | 2023 Oct–Dec |
2022 Oct–Dec |
2023 Jan–Dec |
2022 Jan–Dec |
| no. unless otherwise stated | ||||
| Building rights | ||||
| 9,500 | 8,700 | 9,500 | 8,700 | |
| of which, off-balance sheet building rights | 2,500 | 2,900 | 2,500 | 2,900 |
| Housing development for consumers | ||||
| Net sales, SEK M | 481 | 441 | 1,819 | 1,997 |
| Housing units sold | 20 | 11 | 110 | 256 |
| Sales value of housing units sold, SEK M | 87 | 32 | 454 | 1,035 |
| Production starts | 22 | 88 | 143 | |
| Housing units in ongoing production | 180 | 675 | 180 | 675 |
| Sales rate for ongoing production, % | 24 | 61 | 24 | 61 |
| Completed housing units not recognised in profit | 156 | 40 | 156 | 40 |
| Housing units for sale (ongoing and completed) | 263 | 285 | 263 | 285 |
| Housing units recognised in profit | 140 | 116 | 467 | 507 |
| Housing development for investors | ||||
| Net sales, SEK M | 369 | 303 | 814 | 704 |
| Housing units sold | ||||
| Sales value of housing units sold, SEK M | 4 | 1 | 10 | 12 |
| Production starts | 231 | |||
| whereof investment properties | 231 | 231 | ||
| Housing units in ongoing production | 651 | 651 | ||
| whereof investment properties | 231 | 231 | ||
| Sales rate for ongoing production, % | 100 | 100 | ||
| Housing units recognised in profit | 162 | 162 | 420 | 374 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Finland | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| no. unless otherwise stated | ||||
| Building rights | 3,600 | 3,400 | 3,600 | 3,400 |
| of which, off-balance sheet building rights | 2,100 | 2,100 | 2,100 | 2,100 |
| Housing development for consumers | ||||
| Net sales, SEK M | 152 | 540 | 872 | 1,175 |
| Housing units sold | 33 | 19 | 87 | 212 |
| Sales value of housing units sold, SEK M | 59 | 45 | 191 | 582 |
| Production starts | 139 | |||
| Housing units in ongoing production | 382 | 382 | ||
| Sales rate for ongoing production, % | 55 | 55 | ||
| Completed housing units not recognised in profit | 124 | 48 | 124 | 48 |
| Housing units for sale (ongoing and completed) | 124 | 211 | 124 | 211 |
| Housing units recognised in profit | 71 | 196 | 306 | 414 |
| Housing development for investors | ||||
| Net sales, SEK M | 491 | 229 | 1,654 | 565 |
| Housing units sold | 220 | 75 | 626 | |
| Sales value of housing units sold, SEK M | 27 | 587 | 154 | 1,427 |
| Production starts | 220 | 75 | 626 | |
| Housing units in ongoing production | 418 | 1,088 | 418 | 1,088 |
| Sales rate for ongoing production, % | 100 | 100 | 100 | 100 |
| Housing units recognised in profit | 216 | 110 | 745 | 304 |
| Average no. of employees during the financial year | 168 | 232 | ||
| 2023 | 2022 | 2023 | 2022 | |
| Baltics (Estonia, Latvia and Lithuania) | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| no. unless otherwise stated | ||||
| Building rights | 6,800 | 7,500 | 6,800 | 7,500 |
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Baltics (Estonia, Latvia and Lithuania) | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| no. unless otherwise stated | ||||
| Building rights | 6,800 | 7,500 | 6,800 | 7,500 |
| of which, off-balance sheet building rights | 2,000 | 3,250 | 2,000 | 3,250 |
| Housing development for consumers | ||||
| Net sales, SEK M | 331 | 382 | 768 | 831 |
| Housing units sold | 81 | 62 | 321 | 470 |
| Sales value of housing units sold, SEK M | 120 | 92 | 460 | 654 |
| Production starts | 131 | 79 | 384 | 495 |
| Housing units in ongoing production | 527 | 781 | 527 | 781 |
| Sales rate for ongoing production, % | 19 | 39 | 19 | 39 |
| Completed housing units not recognised in profit | 170 | 53 | 170 | 53 |
| Housing units for sale (ongoing and completed) | 594 | 531 | 594 | 531 |
| Housing units recognised in profit | 214 | 279 | 521 | 676 |
| Housing development for investors | ||||
| Net sales, SEK M | ||||
| Housing units sold | ||||
| Sales value of housing units sold, SEK M | ||||
| Production starts | ||||
| whereof investment properties | ||||
| Housing units in ongoing production | ||||
| whereof investment properties | ||||
| Sales rate for ongoing production, % | ||||
| Housing units recognised in profit | ||||
| Average no. of employees during the financial year | 257 | 289 |
| Key performance indicators at end of period | ||
|---|---|---|
| Including discontinued operations, and for historical comparison figures also operations to be discontinued and discontinued operations. | ||
| 2023 | 2022 | |
| 31 Dec | 31 Dec | |
| Return on capital employed, R12, %¹⁾ | 4.3 | 6.9 |
| Interest coverage ratio, R12, multiple²⁾ | –1.1 | 4.4 |
| Equity/assets ratio, %³⁾ | 34.6 | 31.2 |
| Return on equity, R12, % | –18.5 | –3.6 |
| Interest-bearing liabilities/total assets, % | 30.5 | 29.6 |
| Net debt | 4,951 | 7,259 |
| Debt/equity ratio, multiple | 0.8 | 0.9 |
| Capital employed | 12,422 | 15,568 |
| Capital turnover rate, multiple | 0.9 | 1.1 |
| Share of risk-bearing capital, % | 34.7 | 31.4 |
| Average interest rate at period-end, %⁴⁾ | 7.07 | 4.03 |
| Average fixed-rate term, years⁴⁾ | 0.1 | 0.2 |
| 3.70 | ||
| Average interest rate at period-end, %⁵⁾ | 5.58 |
| 1) Before items affecting comparability. | ||||
|---|---|---|---|---|
| 2) For disclosure of interest coverage ratio under the terms of the loan, refer to the section of "Covenants in loan agreements" in Note 4. | ||||
| 3) For disclosure of equity/assets ratio under the terms of the loan, refer to the section of "Covenants in loan agreements" in Note 4. | ||||
| 4) Excluding loans in Swedish tenant-owner associations, Finnish housing companies, and leases. | ||||
| 5) Pertains to loans in Swedish tenant-owner associations and Finnish housing companies. | ||||
| Average rate | Rate on balance sheet date | |||
| EXCHANGE RATES | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| DKK | 1.54 | 1.43 | 1.49 | 1.50 |
| EUR | 11.47 | 10.63 | 11.11 | 11.13 |
| NOK | 1.00 | 1.05 | 1.01 | 1.06 |
Key performance indicators per quarter and full-year are available at https://www.bonava.com/en/investor-relations/financial-information Definitions of key figures and reporting of Bonava's alternative performance measures can also be found here.
We create happy neighbourhoods for the many.
Bonava is a leading residential developer in Europe with the purpose to create happy neighbourhoods for the many. The company is the first residential developer in Europe to receive approval from the Science Based Targets initiative for its climate targets.
With its 1,300 co-workers, Bonava develops residential housing in Germany, Sweden, Finland, Estonia, Latvia and Lithuania, with net sales of approximately SEK 13.3 Bn in 2023. Bonava's shares and green bond are listed on Nasdaq Stockholm.
19 REGIONS
1,300 EMPLOYEES END OF Q4 2023
13.3 SEK BN NET SALES 2023
Lars Ingman, CFO [email protected], +46 700 887 955
Anna Falck Fyhrlund, Head of Investor Relations [email protected], +46 707 604 914
This information is such that Bonava AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on 1 February 2024 at 7:30 a.m. CET.
President and CEO Peter Wallin and CFO Lars Ingman will present the report on 1 February 2024 at 9:30 a.m. CET.
Follow the webcast live at: https://bonava.videosync.fi/2024-02-01-q4-2023
To participate in the teleconference, register using this link: https://service.flikmedia.se/teleconference/?id=100386 After registration, you will receive a telephone number and conference ID to be able to participate in the presentation.
The presentation material will be available at bonava.com.
Bonava AB (publ), Corp. Reg. No.: 556928-0380 Lindhagensgatan 74, SE-112 18 Stockholm, Sweden Tel: +46 8 409 544 00 bonava.com
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