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Wästbygg Gruppen

Annual Report Feb 18, 2021

3126_10-k_2021-02-18_fac691be-a4d0-4870-bc05-9ed966da9b55.pdf

Annual Report

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YEAR-END REPORT

Wästbygg Gruppen AB (publ) January – December 2020

Office interior, DSV, Vestby, Norway

Strong results after an unusual year!

The financial statements for 2020 have now been prepared, and I am satisfied with the results given the current circumstances. We conduct our operations in three strong business areas. There are projects on the market, but as a result of the pandemic, competition has increased and many clients have opted to postpone their investment decisions. Despite this, based on the segment reporting, our revenues have only fallen by a few percentage points compared to the previous year. We have clearly indicated in our communications that we intend to prioritise profitability over volume and have set long-term growth targets. I see it as an important measure of our strength that we achieved an operating profit of SEK 254 million, which is an improvement of 32 per cent compared with 2019.

Jörgen Andersson, CEO Wästbygg Gruppen AB

Year-End Report January – December 2020

CONSOLIDATION OF OWNER-OCCUPIER PROJECTS THAT THE COMPANY IS DEVELOPING

As of the interim report for the period January–June 2020, the Group reports revenues and results for project development of owner-occupied flats upon completion. In addition revenue recognition for these projects is reported over time in the segment report, as this provides a clearer picture of the Group's financial position at each individual reporting occasion. See Note 2 on page 20 for further information.

GROUP IN SUMMARY

1 OCTOBER – 31 DECEMBER 2020

  • Revenue SEK 924 million (1,046)
  • Operating profit SEK 65 million (40)
  • Profit after tax SEK 82 million (40)
  • Earnings per share SEK 2.66 (1.77)
  • Cash flow from operating activities SEK -161 million (-23)

1 JANUARY – 31 DECEMBER 2020

  • Revenue SEK 3,620 million (3,889)
  • Operating profit SEK 223 million (220)
  • Profit after tax SEK 234 million (215)
  • Earnings per share SEK 9.39 (9.40)
  • Cash flow from operating activities SEK -237 million (-63)
  • Interest-bearing net cash (+) / net debt (-) SEK 477 million (-7)
  • Equity ratio 50% (27)
  • The Board of Directors proposes that the Annual General Meeting adopt a dividend of SEK 3.30 per share (3.27)

SIGNIFICANT EVENTS IN THE FOURTH QUARTER

  • A self-developed logistics facility in Stockholm with MatHem as a tenant has been sold to Niam AB. The purchase price amounts to approx. SEK 900 million. The facility is under construction and will be taken over by Niam upon completion during the first quarter of 2022.
  • A contract has been signed with DHL for the construction of a parcel terminal at Copenhagen Airport, Kastrup. The order value is approximately SEK 500 million.
  • Wästbygg Gruppen AB was listed on Nasdaq Stockholm on 13 October. At that time the offer was oversubscribed.
  • Marie Lindebäck, formerly the company's Deputy Head of Sustainability, has been appointed Head of IR.
  • The number of shares and votes in the company changed as a result of two new share issues in which a total of 9,390,165 new Class B shares were issued in connection with the stock exchange listing. Authorisation to carry out the share issue was granted by the Annual General Meeting to Wästbygg's Board of Directors on 23 March 2020. For more information regarding the share issues, see page 31.
  • A shareholder loan from the M2 Group of SEK 30 million was repaid in connection with the new share issue.
  • A conditional shareholders' contribution of SEK 48 million has been converted into an unconditional one.

SUMMARY ACCORDING TO SEGMENT REPORT

1 OCTOBER – 31 DECEMBER 2020

  • Revenue SEK 1,002 million (1,141)
  • Operating profit SEK 77 million (56)
  • Profit after tax SEK 97 million (55)
  • Earnings per share SEK 3.16 (2.38)
  • Cash flow from operating activities SEK -97 million (68)
  • New orders SEK 1,266 million (1,359)

1 JANUARY – 31 DECEMBER 2020

  • Revenue SEK 3,801 million (3,905)
  • Operating profit SEK 254 million (192)
  • Profit after tax SEK 268 million (187)
  • Earnings per share SEK 10.75 (8.15)
  • Cash flow from operating activities SEK -95 million (-73)
  • Interest-bearing net cash (+) / net debt (-) SEK 928 million (129)
  • Equity ratio 57% (31)
  • New orders SEK 3,232 million (3,850)
  • Order backlog 31 December SEK 3,201 million (3,752)

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

  • After achieving the sales target, a decision was taken to start production of our self-developed project Soluret, in Malmö with 45 tenant-ownership association apartments.
  • A decision was taken to launch sales of apartments in the self-developed project Parklyckan, in Stockholm, which comprises 36 terraced houses.
  • A decision was taken to begin renting out apartments in the self-developed sheltered housing Kv Häggen in Halmstad.
  • A contract was signed with Nordströms Bygghandel for the construction of a building supplies store in Norrköping.
  • A land allocation contract was signed with the City of Stockholm for the development of 70 apartments in Årstafältet.
  • An organisational merger took place between the operations of the group companies Wästbygg AB and Wästbygg Projektutveckling AB. In connection with this, Wästbygg AB's CEO Susanne Liljedahl decided to leave the company and the group management team. Group CEO Jörgen Andersson will step in as CEO of the merged operations until further notice.
  • Jenny Jakobson, Head of Communications and Brand, has joined the group management team.

Financial Overview and Key Ratios*

SEK million unless other
otherwise specified
Oct-Dec
2020
Oct-Dec
2019
Jan–Dec
2020
Jan–Dec
2019
Jan–Dec
2018**
Jan–Dec
2017**
Financial key ratios
Revenue 924 1,046 3,620 3,889 3,543 2,822
Operating profit 65 40 223 220 147 91
Operating margin, % 7,0 3,8 6,2 5,7 4,1 3,2
Profit/loss after tax 82 40 234 215 142 86
Balance sheet 3,170 2,144 3,170 2,144 1,697 1,471
Equity/assets ratio, % 50 27 50 27 25 24
Return on equity, % 21 39 22 43 37 30
Operating capital 785 270 785 270 -17 -29
Interest-bearing
net cash (+) / net debt (-)
477 -7 477 -7 173 114
Cash flow from operating
activities
-161 -23 -237 -63 141 134
Equity related key ratios
Earnings per share , SEK*** 2.66 1.77 9.39 9.40 6.16 3.73
Equity per share, SEK 49.17 24.81 49.17 24.81 18.19 15.50
Number of shares at the end of
the period (thousands)****
32,340 22,950 32,340 22,950 22,950 22,950
Average number of shares
(thousands)****
30,782 22,950 24,913 22,950 22,950 22,950
Segment reporting Oct-Dec
2020
Oct-Dec
2019
Jan–Dec
2020
Jan–Dec
2019
Jan–Dec
2018**
Jan–Dec
2017**
Jan–Dec
2016**
Financial key ratios
Revenue 1,002 1,141 3,801 3,905 3,652 2,838 2,331
Operating profit 77 56 254 192 171 105 19
Operating margin, % 7,7 4,9 6,7 4,9 4,7 3,7 0,8
Profit/loss after tax 97 55 268 187 163 100 41
Balance sheet 2,872 1,893 2,872 1,893 1,599 1,454 1,140
Equity/assets ratio, % 57 31 57 31 29 27 19
Return on equity, % 23 33 24 35 38 33 20
Operating capital 575 177 575 177 -110 -43 188
Interest-bearing
net cash (+) /net debt (-)
928 129 928 129 308 151 -115
Cash flow from operating
activities
-97 68 -95 -73 240 179 -4
Equity related key ratios
Earnings per share , SEK***
3.16 2.38 10.75 8.15 7.09 4.37 1.77
Equity per share, SEK 50.92 25.78 50.92 25.78 20.27 16.66 8.13
Number of shares at the end of
the period (thousands)****
32,340 22,950 32,340 22,950 22,950 22,950 22,950
Average number of shares
(thousands)****
30,782 22,950 24,913 22,950 22,950 22,950 22,950
Operational key ratios
New orders 1,266 1,359 3,232 3,850 3,077 3,604 2,556
Order backlog 3,201 3,752 3,201 3,752 3,634 4,037 2,305
No of employees at end of period 311 305 311 305 288 261 208

For key ratio definitions, see page 29.

* The key ratios for the Group are shown above, both in accordance with IFRS and the segment accounting applied for internal management and accounting, see Note 2 on page 20 for further information.

** As of 2019, IFRS 16 Leasing is applied. The years up to and including 2018 have not been recalculated, as the change has little effect on earnings.

*** The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

**** For information on the development of the share capital during 2020 as a result of the share split and new share issues, see the table on page 31.

A Word from the CEO

Strong results after an unusual year!

In the Wästbygg Group's history, 2020 will go down as the year when the company was listed on the Nasdaq Stockholm stock exchange. The stock market listing in October has given us the financial strength to increase investment in our product development operations and continue building up a portfolio of self-developed community service properties in the Inwita Fastigheter group company. At a wider societal level, it is COVID-19 that will distinguish the past year from most other years in modern times. I am extremely grateful for the enormous responsibility shown by our employees. With creativity and flexibility, everyone has pulled together and kept the company working, both at project level and in our administrative operations.

The financial statements for 2020 have now been prepared, and I am satisfied with the results given the current circumstances. We conduct our operations in three strong business areas. There are projects on the market, but as a result of the pandemic, competition has increased and many clients have opted to postpone their investment decisions. Despite this, based on the segment reporting, our revenues have only fallen by a few percentage points compared to the previous year. We have clearly indicated in our communications that we intend to prioritise profitability over volume and have set long-term growth targets. I see it as an important measure of our strength that we achieved an operating profit of SEK 254 million, which is an improvement of 32 per cent compared with 2019.

We have succeeded in maintaining a high pace of production in our projects. This, in combination with the current market situation, explains why our order backlog is about SEK 600 million lower than a year ago. However, our order intake was strong in the fourth quarter.

RESIDENTIAL BUSINESS AREA

During the autumn we saw signs of positive development in the residential market. This has resulted in several new construction assignments and continued strong sales of apartments in

our self-developed residential projects. During the year we also sold two self-developed tenant-ownershop projects that are currently under construction. One of these, Lagerkransen in Lund, started construction in October. We are following this project with particular interest as it is our first apartment block to be built with a solid wood frame. The aim is for Lagerkransen to be awarded Miljöbyggnad Guld certification from the Sweden Green Building Council. At the beginning of 2021 we decided to start construction of Soluret in Malmö and launch sales of Parklyckan, a development of 36 townhouses in Stockholm.

COMMERCIAL BUSINESS AREA

Community service properties are of high priorty in Commercial, both with regard to construction contracts and to self-developed community service properties in Inwita Fastigheter. During the year, we received a land allocation for a preschool and completed a land acquisition for the future production of sheltered housing and an elderly care home, while construction of the Häggen sheltered housing project is under way in Halmstad. Our business developers are actively working to secure our targets with new acquisitions and land allocations. Parallel to this, discussions are under way regarding new development opportunities.

LOGISTICS AND INDUSTRY BUSINESS AREA

The group company Logistic Contractor ended the year with a strong order intake. The contract to build DHL's new parcel terminal at Copenhagen Airport, Kastrup with an order value of SEK 500 million shows that our investment in the Nordic market is the right way to go. At the end of the year we sold the facility we are developing and building for MatHem in Stockholm. There was very keen interest from several actors, providing further proof that the logistics market continues to be highly attractive.

A LOOK FORWARD

We started 2021 with an organisational restructure in Residential and Commercial. As of 1 February, employees in construction and project development will belong to the same organisation. The restructure is a natural step in a process that had already been initiated to make us more competitive. By acting as a single entity, we will strengthen our expertise, create greater business value for our external clients and strengthen our internal business in development projects. I will step in as CEO of the new organisation, until further notice, with Magnus Björkander, formerly CEO of Wästbygg Projektutveckling, as Deputy CEO. In connection with the restructure, Susanne Liljedahl, formerly CEO of the construction company Wästbygg AB, has decided to leave us, and I would like to thank her for her great work during her years with the company.

I now look forward to another financial year with the Wästbygg Group, a year during which we will also celebrate our 40th anniversary.

Jörgen Andersson CEO Wästbygg Gruppen AB

REVENUE AND EARNINGS

October – December 2020

When reporting in accordance with IFRS, see Note 2 on page 20 for further information, self-developed tenant-ownership projects are only recognised in the income statement upon completion as of the interim report for January – June 2020. Given this, the difference between individual quarters may be significantly greater than before.

The spread of COVID-19 increased during the autumn, causing continued market uncertainty. The number of new projects on the market was roughly the same as in previous years, but lead times from tender to decision are significantly longer. Moreover, greater competition was noted at year end in terms of the number of players submitting tenders for each individual project.

Despite this, the Wästbygg Group ended 2020 with another strong quarter. Revenues amounted to SEK 924 million (1,046). Operating profit amounted to SEK 65 million (40), and was charged during the quarter with one-off costs of approximately SEK 11 million relating to the stock exchange listing. Other costs directly associated with raising capital, amounting to SEK 37 million, were offset against the share issue payment under equity. The company's sale of a large logistics facility in December was partially offset against profit during the fourth quarter. Because the organisation had spent time on the project development during almost the whole of 2020, the sale also had a retroactive effect when costs previously expended could be covered.

Profit after tax was SEK 82 million (40), which corresponds to earnings per share of SEK 2.66 (1.77) recalculated based on the share split and the share issues that were implemented during 2020, see page 31 for further information. The operating margin amounted to 7.0% (3.8).

The year's strongest order intake occurred in the fourth quarter. New contracts were signed for a total of SEK 1,266 million (1,359). The Logistics and Industry business area represented a sizeable portion of the order intake, which shows how strong this market segment continues to be.

The order backlog remained stable at over SEK 3 billion after both the third and fourth quarters, and amounted to SEK 3,201 million (3,752) as of 31 December. This partially compensated for the decline during the spring, although the order backlog has not returned to the 2019 level.

January – December 2020

The Group is well positioned in these uncertain times thanks to its three diversified business areas and the combination of construction and project development. The Logistics and Industry business area performed very well during the year. There were also very positive signals from the residential market during the autumn.

Revenues for the whole year amounted to SEK 3,620 million (3,889), which is a reduction of 7%. Despite a decline in volume, we report an operating profit of SEK 223 million (220). A key factor behind the strong result is the company's increased focus on project development. During 2020 the company sold eight self-developed projects divided between five logistics facilities, two residential projects and one commercial property. The ability to generate own business will be especially important as competition increases in the construction market.

Profit after tax for the year amounted to SEK 234 million (215), which corresponds to earnings per share of SEK 9.39 (9.40). The earnings per share are not comparable between 2020 and 2019 due to the issue of approximately 9.4 million new shares in the fourth quarter of 2020 and the related dilution effect.

The total order intake for the year was SEK 3,232 million (3,850) following a weaker than normal order intake during the spring. It was primarily the Commercial business area that was affected.

PROFITABILITY AND FINANCIAL POSITION

The two new share issues carried out in connection with the listing on Nasdaq Stockholm, see page 31 for details, have strengthened the Wästbygg Group's cash position The company's share capital has increased by approximately SEK 1 million. The shares were issued at a premium for SEK 901 million, and the funds raised through the share issues are recognised under Share premium reserve in the parent company's balance sheet. The funds from the share issues will primarily be used for continued investment in project development operations and to build up a portfolio of self-developed community service properties in the Group.

Following the new share issue, equity per share amounted to SEK 49.17 (24.81) at the end of the period, recalculated based on the share split carried out during the first quarter.

REVENUES AND OPERATING PROFITS, SEK million/quarter

ORDER INTAKE AND ORDER STOCK SEK million/quarter

The Group reported interest-bearing net cash of SEK 477 million (-7) at the end of the period. At the beginning of the year, net debt amounted to SEK -7 million (173). Net cash was reinforced as a result of the new share issue, but is also affected by external loans in consolidated tenant-ownership association projects under production in an amount of SEK 362 million. Two of the three self-developed tenant-ownership projects that are under production will be completed and handed over during the first six months of 2021. After this, these tenant-owner associations' loans will no longer be consolidated in the company's financial statements.

CASH FLOW AND INVESTMENTS

Variations in cash flow from one period to another are a natural consequence of how many development projects are in progress and how many are sold.

Total cash flow during the fourth quarter amounted to SEK 757 million (118), divided into current operations SEK -161 million (-23), investment operations SEK -15 million (-2) and financing operations SEK 933 million (143).

Total cash flow for the 2020 financial year amounted to SEK 569 million (-97), divided into current operations SEK -237 million (-63), investment operations SEK -60 million (-11) and financing operations SEK 866 million (-23).

A negative cash flow from current operations is completely in line with the company's strategy to increase the proportion of development projects, which occurred during 2020. The negative cash flow from investment operations during the year was linked to the construction of the Kv Häggen sheltered housing in Halmstad, which is being built for own ownership in the Group company Inwita Fastigheter.

A shareholders' loan to M2 was amortised in its entirety during the quarter. In light of the strong liquidity, the company also decided to amortise a loan to Swedbank of SEK 15 million in advance with a planned maturity running until 30 June 2021 and quarterly payments of SEK 5 million.

The self-developed residential project Tuvebo Ateljé was self-financed up to and including the third quarter, but a building credit agreement was entered into during the fourth quarter.

The equity ratio at the end of the period was 50% (27). The Group's strong equity ratio is a result of the new share issue as well as a positive earnings trend during the year. On the other hand, it is held back by non-extracted profits in self-developed tenant-ownership association projects.

MARKET POSITION

As a result of the COVID-19 pandemic, the market situation remains uncertain and difficult to assess, especially as the spread of infection picked up again during the autumn and winter.

The Confederation of Swedish Enterprise expects Swedish GNP to shrink by approximately three percentage points during 2020, and also predicts an unemployment rate of 8.5% for the whole year.

The company follows market events closely. The housing shortage in many municipalities, increasing e-commerce with associated logistics requirements and the demand for community service properties based on population growth create conditions for continued positive development, and focus will continue to be placed on these business areas.

PERSONNEL

At the end of the period the Group had 311 employees, compared with 305 at the start of the year. Throughout the COVID-19 pandemic, the Group has worked with full staffing and no redundancies or other reductions have been required. At present, the workforce is considered to be well balanced in relation to the operations.

OVERALL GOALS (segment accounting)

Ahead of 2020, goals were formulated for growth, operating margin and equity/assets ratio. Outcomes over time are reported below.

GROWTH, 10 % from previous year OPERATING MARGIN (EBIT), 6% EQUITY/ASSETS RATIO, 25%

Growth measured on the basis of revenue must be 10 percent over time, but always taking into account good profitability. In 2020, growth decreased by 3 percent

The long-term operating margin (EBIT) must exceed 6 percent. As of 31 December 2020, operating margin was 6.7%.

The equity/assets ratio shall not be less than 25 percent. As of 31 December 2020, the equity/assets ratio was 57%.

Segment reporting

All three segments reported positive results throughout 2020.

During 2019, the Residential business area was burdened by write-downs in a contract assignment and by adverse impact on project development operations caused by the slump in the residential market. The market began to recover in autumn 2020, which is reflected in a more than doubling of the order intake compared with the previous year, alongside strong apartment sales in self-developed tenant-ownership association projects. The order backlog is now at the same level as before the start of the COVID-19 pandemic.

In Commercial, the company is in the final phase of two major retail facilities which will be handed over at the start of 2021. It has been hard to replace these projects with new projects of the same magnitude since trade is an area that has suffered during the current pandemic. This segment is undergoing internal restructuring with an increased emphasis placed on community service properties. This work will be intensified with regard to both construction assignments and project development. However, the development projects that are already in the company's project portfolio are not yet ready to commence construction.

Logistics and Industry saw both revenue and results rise significantly in 2020 compared with 2019. This is largely a consequence of a continued increase in the proportion of development projects. Five self-developed logistics facilities were sold during 2020. The order intake in the business area was nearly SEK 0.5 billion lower in 2020 than the previous year, but this difference is ascribable to a single project, Northvolt, which accounted for almost 40% of the 2019 order intake. In Logistics and Industry as well, the order backlog has returned to the same level as a year ago.

17% Residential

NEW ORDERS

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK million 2020 2019 2020 2019
Residential 212 324 1,084 463
Commercial 64 395 266 1,072
Logistics and Industry 990 640 1,882 2,315
TOTAL 1,266 1,359 3,232 3,850

ORDER BACKLOG

31 Dec 31 Dec
SEK million 2020 2019
Residential 1,173 1,160
Commercial 265 848
Logistics and Industry 1,763 1,744
TOTAL 3,201 3,752

REVENUE AND OPERATING PROFIT, SEK million

DISTRIBUTION OF NEW ORDERS OCT–DEC 2020

5% Commercial

78% Logistics and Industry

SEASONAL VARIATIONS

Wästbygg's seasonal variations are mainly linked to new orders and revenue.

The level of new orders is usually higher during Q2 and Q4. This is explained by the fact that many customers want to conclude negotiations on new projects before the holiday period begins or before the end of the year.

The number of production days is lower during the third quarter of the year, when the holiday period occurs, which is reflected in both revenue and new orders.

As a result of covid-19, the pattern has changed slightly in 2020. Many investment decisions have been postponed until the second half of the year, so that order intake for the company as a whole was relatively good during the third and fourth quarters.

RESIDENTIAL

Wästbygg builds apartment buildings for external clients (municipal and private). The company also develops and builds its own residential projects. In the production currently in progress, there is a clear predominance of external assignments. The long-term ambition is to increase the proportion of self-developed residential projects to about 50%.

At the end of the year, apartments were being sold in four self-developed projects, of which three were under production. A decision was taken at the beginning of 2021 to start production of the fourth project after achieving the sales target. These four projects comprise a total of 250 apartments, of which 168 had been sold and 13 reserved as of year end. In the two projects that are in their final phase and due for completion in spring 2021, more than 90% of the apartments had been sold as of year end, and further apartments have since been sold in both projects.

The order intake for construction assignments did not reach the desired level in the early part of the year, while eight residential projects were completed in 2020. This explains the reduction in revenues during the year. On the other hand, Residential performed significantly better than in 2019 due to a larger number of development projects in progress and good profitability in ongoing and completed projects. The strong order intake during the autumn will primarily generate revenues during 2021, as the projects have so far been in the start-up phase.

MARKET SITUATION

Preliminary figures from the National Board of Housing, Building and Planning suggest that 54,000 new homes will have started construction in 2020 and almost as many will do so in 2021. The number of newly produced rental apartments rose by 20% compared with 2019. New production of tenantowned apartments remained at approximately the same level but is expected to increase in 2021. The residential market performed very well throughout the autumn, both in terms of prices and number of sold properties.

The National Board of Housing, Building and Planning's updated forecast of building demand from December 2020 indicates that the number of homes that start construction now is in accordance with the population increase in many of the locations with the greatest need for new construction projects. However, even if construction is in line with the population increase, there is a sizeable deficit to be recovered. For this reason, the National Board of Housing, Building and Planning predicts that 59,000 to 66,000 homes need to be built per year during the period 2020–2029 in order to meet the expected population increase and recover the accumulated deficit.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

• After completion of joint planning and designing, a contract was signed with AF Bostäder for the construction of the project Pireus in Lund comprising 223 student housing units. Order value SEK 180 million.

BUSINESS AREA RESIDENTIAL IN FIGURES

REVENUE AND PROFIT

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK million 2020 2019 2020 2019
Revenue 274 527 1 122 1 690
- of which construction 168 299 812 1 396
- of which project development 106 228 310 294
Profit 4 -18 8 -37
PRODUCTION, NUMBER OF FLATS
Completed during the fourth quarter
Ongoing December 31, construction external contracts 1,049

Ongoing December 31, project development 461 Total in progress 1,510

Pireus in Lund

ONGOING CONSTRUCTION, NO OF FLATS

COMMERCIAL

The Commercial segment primarily builds retail properties, offices and community service properties. The majority of the projects are construction assignments for external clients. The company also develops and builds its own commercial projects with an emphasis on community service properties.

Wästbygg's commercial operations are predominantly focused on the three metropolitan regions and on the company's other office locations. In cases where commercial projects are carried out elsewhere, it is primarily for repeat customers.

Retail properties have for many years represented a significant part of Wästbygg's commercial construction projects, but as physical retail has been hit hard by the pandemic, demand for new retail development has fallen. The majority of the retail projects currently under production are now in their final phases.

In community service properties, production is under way on two elderly care homes, both of which are external construction assignments, as well as on the self-developed sheltered housing project Kv Häggen in Halmstad, which is being built for own management in the group company Inwita. As the project is carried out for own ownership, this does not affect revenues, profit or order backlog.

Detailed planning work is under way for a further three self-developed community service properties with production planned to commence in the next two years.

During the quarter, the company handed over a facility built for the real estate company IBAB in Borås, with Leos Lekland as the tenant.

MARKET SITUATION

According to a report from Navet Analytics, the annual forecast for new office and retail construction points towards a decrease of 25% this year compared to the full year 2019. For public premises, the reduction is expected to be about 10%. This is well in line with the company's evaluation based on the requests to tender received. However, a slight increase was noted towards the end of the year and at the start of 2021.

The requests to tender that are being issued show that there is continued demand for community service properties in the form of preschools, schools and elderly care homes. The cultivation of this market has high priority, both with regard to construction assignments and project development.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

• A contract was signed with Arom-dekor Kemi in Borås for a 4,000 sqm extension of an existing production facility. Order value SEK 36 million.

BUSINESS AREA RESIDENTIAL IN FIGURES

REVENUE AND PROFIT

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK million 2020 2019 2020 2019
Revenue 193 184 844 982
- of which construction 172 186 706 954
- of which project development 21 -2 138 28
Profit 8 12 31 35

PRODUCTION, NUMBER OF SQ.M.

Total in progress 107,285
is not included in revenues, profit or order backlog. 2,900
Sheltered housing Häggen, built for own management,
Ongoing December 31, project development 8,600
Ongoing December 31, construction external contracts 95,785
Completed during the fourth quarter 3,800

ONGOING CONSTRUCTION, NO OF SQM

LOGISTICS AND INDUSTRY

Operations in Wästbygg's logistics and industry segments are conducted in the group company Logistic Contractor, with operations in Sweden, Norway, Denmark and Finland. The company specialises in developing and building large logistics and industrial facilities designed for rational handling and large-scale operations in logistics and light manufacturing.

Logistic Contractor had its strongest year ever in terms of both revenues and profit. A strong order intake in the fourth quarter provides a good start to 2021 since only a small proportion of the revenues from the projects was reported in 2020.

The cultivation of the markets in Denmark, Norway and Finland has been partially affected by the fact that those countries have so far had greater restrictions than Sweden during the COVID-19 pandemic.

A strong need for logistics and industrial facilities has been identified in all three countries, and the local organisations have been reinforced in terms of staff in order to be able to intensify their sales efforts when these countries fully reopen.

COVID-19-outbreak on the Northvolt construction site

During the start of 2021, the spread of COVID-19 increased at Northvolt's construction site, as it did in the entire region. Because of this, Northvolt introduced stricter rules on 11 February regarding the number of people allowed at the site simultaneously. Logistic Contractor has been operating at the site since 2019, after signing a contract with Northvolt for the construction of four buildings. The company is one of several subcontractors involved in this project. Since the outbreak of the pandemic, LC's responsible staff members have been vigilant to the spread of the virus and taken active steps to prevent consequences, both for employees and for the continued implementation of the project. As of 11 February, the pandemic has had little impact on the project and work at the site has, in principle, been able to continue as usual. The project is now in its final face as regards LC's involvement, and has therefore entered a less staff-intensive period.

MARKET SITUATION

The Swedish logistics market has been strong for several years and currently shows no signs of cooling off. However, more players have been attracted by this positive trend. As in the construction industry as a whole, there is a reluctance to make investment decisions, which prolongs the time taken. E-commerce, an important factor in logistics market development, saw a strong upswing in 2020 due to COVID-19, both in terms of the number of people shopping online and purchase volumes. Which purchasing behaviours will prevail remains to be seen when society returns to a greater degree of normality.

According to a report from Navet Analytics, new production of industrial properties developed well during the year. The volume for industrial property construction during the first three quarters of the year was just over SEK 3.8 billion. The forecast for the year points towards an increase of 20% compared with the previous year. In the future, Logistic Contractor will expand its investment in developing and building properties for light industry.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

  • A contract was signed with DHL for the construction of a 26,000 sqm parcel terminal in Copenhagen. Order value approx. SEK 500 million.
  • A contract was signed with Mileway for a 7,200 sqm extension to a logistics facility in Västerås. Order value SEK 51 million.
  • A contract was signed with the M2 Group for a 12,000 sqm extension to a logistics facility in Kalmar. Order value SEK 84 million.
  • A self-developed logistics facility in Stockholm with MatHem as a tenant has been sold to Niam. The purchase price amounts to approx. SEK 900 million.

BUSINESS AREA LOGISTICS AND INDUSTRY IN FIGURES

REVENUE AND PROFIT
--------------------
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK million 2020 2019 2020 2019
Revenue Sweden 518 281 1 513 922
Revenue abroad 17 157 322 318
Revenue total 535 438 1,835 1,240
- of which construction 261 204 1,234 604
- of which project development 274 234 601 636
Profit 106 73 274 216
PRODUCTION, NUMBER OF SQM.
Completed during the fourth quarter 0
Ongoing December 31, construction external contracts 170,500
Ongoing December 31, project development 138,000
Total in progress 308,500

Nordic Nest, Kalmar

DEVELOPMENT PORTFOLIO RESIDENTIAL AND COMMERCIAL*

ONGOING PROJECTS

Project, Municpality Type No of
flats
Total area
(sq.m. )
Phase Start of production Completion
No 12, Kristianstad Self owned 76 6 074 Production 2019 2021
Tuvebo Smedja, Göteborg Self owned 58 4 706 Production 2019 2021
Lagerkransen 3, Lund Rental 83 4 696 Production 2020 2022
Tuvebo Atelje, Göteborg Self owned 71 4 679 Production 2020 2021
Hornbach, Trollhättan Commercial 9 000 Production 2020 2021
Kv Häggen, Halmstad Senior acc. 29 2 087 Production 2020 2021
Vårberg ungdomsbostäder, Stockholm Rental 174 5 967 Production 2020 2022
Total 491 37 209

UPCOMING PROJECTS

Project, Municpality Type No of
flats
Total area
(sq.m. )
Phase Estimated
start of production
Estimated
completion
Parklyckan, Stockholm Self owned 36 4 026 Zoning plan in effect 2021 2022
Soluret, Malmö Self owned 45 3 240 Zoning plan in effect 2021 2022
Strandängen 1, radhus, Falkenberg Rental 29 2 445 Zoning plan in effect 2021 2022
Hökälla Ängar - etapp 2, Göteborg Self owned 35 3 413 Zoning plan in effect 2021 2023
Cityterrassen, Malmö Self owned 170 12 460 Zoning plan in effect 2021 2024
Sege Park, Malmö Rental 167 9 485 Zoning plan in effect 2021 2023
Tuvebo Glashytta, Göteborg Self owned 44 2 661 Zoning plan in effect 2022 2023
Östra Station, Kävlinge Self owned 69 6 802 Zoning plan in effect 2022 2024
Lillhagsparken etapp 2C, Göteborg Self owned 42 3 276 Zoning plan in effect 2022 2024
Norrtälje hamn, Norrtälje Self owned 145 10 765 Zoning plan in effect 2022 2024
Strandängen 2 trygghetsbostäder,
Falkenberg
Community
service property
80 5 280 Ongoing planned work 2023 2024
Strandängen 2 vårdboende, Falkenberg Community
service property
60 3 800 Ongoing planned work 2023 2024
Kv Galten, Lund Rental &
commercial
60 9 780 Ongoing planned work 2023 2026
Kv Galten, Lund Self owned 90 6 240 Ongoing planned work 2023 2026
Norra Saltskog BRF, Södertälje Self owned 49 3 055 Ongoing planned work 2023 2025
Lilla Essingen Parkhuset, Stockholm Self owned 24 1 849 Zoning plan in effect 2024 2026
Skarpnäck, Stockholm Rental 126 5 659 Ongoing planned work 2024 2026
Skarpnäck förskola, Stockholm Community
service property
- 860 Ongoing planned work 2024 2026
Svandammsplan, Stockholm Self owned 53 3 010 Ongoing planned work 2025 2026
Lilla Essingen Strandhusen, Stockholm Self owned 74 6 032 Zoning plan in effect 2025 2027
Solberga, Stockholm Self owned 35 4 025 Ongoing planned work 2025 2027
Solvalla hotell, Stockholm Commercial - 6 900 Ongoing planned work 2026 2028
Solvalla ungdomsbostäder, Stockholm Rental 120 4 115 Ongoing planned work 2026 2028
Årsta etapp 4a, Stockholm Self owned 79 5 401 Ongoing planned work 2026 2028
Årsta etapp 4b, Stockholm Rental 231 11 764 Ongoing planned work 2026 2028
Västra Roslags-Näsby, Täby Self owned 40 2 951 Zoning plan in effect 2027 2028
Årsta etapp 2n, Stockholm Self owned 237 14 503 Ongoing planned work 2028 2030
Total 2 140 153 797

*The company is not working with a land bank in Logistics and Industry, but connects the land to a tenant in each project before the project development property is acquired.

Consolidated Income Statement

SEK million Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Revenue 924 1 046 3 620 3 889
Costs in production -758 -947 -3 132 -3 473
Gross profit/loss 166 99 488 416
Sales and administration costs -101 -61 -269 -201
Other operating revenue 0 -1 4 6
Other operating costs 0 3 0 -1
Other profit/loss 65 40 223 220
Profit/loss from financial items
Profit shares from joint venture 0 -2 0 0
Financial revenue 0 1 9 8
Financial costs -1 -4 -7 -15
Profit after financial items 64 35 225 213
Change in value of real estate 3 - 6 -
Profit before tax 67 35 231 213
Taxes 15 5 3 2
PROFIT FOR THE PERIOD 82 40 234 215
Profit relating to:
- the parent company's shareholders 82 40 234 215
- holdings without controlling influence 0 0 0 0
Earnings per share, SEK* 2,66 1,77 9,39 9,40
Number of shares at the end of the period (thousands) 32 340 22 950 32 340 22 950
Average number of shares (thousands) 30 782 22 950 24 913 22 950

* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

The Group's Report on Comprehensive Income

SEK million Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Profit for the period 82 40 234 215
Other comprehensive income that can be
transferred to the income statement
Currency difference when translating foreign operations
0 0 -2 0
COMPREHENSIVE INCOME FOR THE PERIOD 82 40 232 215
Total result attributable to:
- the parent company's shareholders
- holdings without controlling influence
82
0
40
0
232
0
215
0

Group Balance Sheet

SEK million 31 Dec
2020
31 Dec
2019
ASSETS
Fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
229
8
229
6
Total 237 235
Tangible fixed assets
Investment properties 59 -
User rights assets 30 44
Inventory, tools and installations 6 8
Total 95 52
Financial fixed assets
Shares in joint ventures 11 11
Deferred tax receivables
Non-current financial assets
42
0
35
0
Total 53 46
Total fixed assets 385 333
Current assets
Development properties, etc. 75 83
Tenant-owner association flats of own development under production 740 534
Accounts receivable 506 369
Accrued but not invoiced 272 170
Tax receivables
Receivables from group companies
26
12
9
12
Other receivables 277 307
Prepaid costs and accrued income 17 29
Cash and cash equivalents 860 298
Total current assets 2 785 1 811
TOTAL ASSETS 3 170 2 144
SEK million 31 Dec
2020
31 Dec
2019
TOTAL EQUITY AND LIABILITIES
Equity
Share capital* 4 3
Other contributed capital 946 83
Retained earnings
This year's comprehensive income
408
232
268
215
Total equity attributable to the company's shareholders 1 590 569
Holdings without controlling influence 3 3
Total equity 1 593 572
Non-current liabilities
Non-current interest-bearing liabilities - 30
Liabilities to group companies 58 10
Liabilities to credit institutions
Debts user rights
16 30
Total 74 70
Non-current non-interest-bearing liabilities
Deferred tax liabilities 4 1
Other provisions 63 20
Total 67 21
Total non-current liabilities 141 91
Current liabilities
Current interest-bearing liabilities
Debts user rights 16 17
Liabilities to credit institutions 304 230
Total 320 247
Current non-interest-bearing liabilities
Accounts payable 247 516
Advance from customer 362 362
Tax liabilities 2 -
Other liabilities 376 258
Accrued expenses and prepaid income 129 98
Total 1 116 1 234
Total current liabilities 1 436 1 481
TOTAL EQUITY AND LIABILITIES 3 170 2 144
Interest-bearing net cash/net liabilities
Interest-bearing assets 872 310
Interest-bearing liabilities 395 317
Interest-bearing net cash/net liabilities 477 -7

* For information about share capital development following division of shares and new share issues, se page 31.

Changes in the Group's equity in summary

SEK million 31 Dec
2020
31 Dec
2019
Equity attributable to the parent company's owners
Amount at the beginning of the period 569 466
Effect of correction in accounting principle for tenant-owner
association flats of own development -51
Effect of change IFRS 16 -1
New issue of shares 901
Transaction costs new issue of shares -37
Dividend -75 -60
Acquisition of non-controlling interests 0
Total comprehensive income for the period 232 215
Amount at the end of the period 1 590 569
Holdings without controlling influence
Amount at the beginning of the period 3 3
Total comprehensive income for the period 0 0
Amount at the end of the period 3 3
TOTAL EQUITY 1 593 572

Group Cash Flow Analysis

SEK million Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Day-to-day operations
Profit/loss before financial items 65 40 223 220
Adjustment for items not included in cash flow 43 3 64 0
Received interest 0 1 9 8
Paid interest -1 -4 -7 -15
Paid tax -1 13 -16 1
Cash flow from operating activities before
changes in working capital 106 53 273 214
Cash flow from changes in working capital
Increase (-)/decrease (+) of tenant-owner association
flats of own development in production -111 -406 -206 -287
Increase (-)/decrease (+) of accounts receivable -188 60 -144 -119
Increase (-)/decrease (+) of other operating receivables -63 105 -52 -104
Increase (+)/decrease (-) of accounts payable -82 109 -268 -17
Increase (+)/decrease (-) of operating liabilities 177 56 160 250
Cash flow from the day-to-day operations -161 -23 -237 -63
Investment activities
Investments in businesses, including additional purchase sums 0 -4 0 -8
Acquisitions of intangible fixed assets -1 2 -3 -1
Investments in investment properties -13 -53
Acquisitions of other tangible fixed assets -1 0 -4 -2
Cash flow from investing activities -15 -2 -60 -11
Financing activities
New issue of shares 901 901
Transaction costs new issue of shares -37 -37
Paid dividend -75 -60
Amortisation of loan liabilities -49 -5 -204 -173
Raised loan liabilities 118 148 281 210
Cash flow from financing activities 933 143 866 -23
CASH FLOW FOR THE PERIOD 757 118 569 -97
Cash and cash equivalents at the start of the period 105 180 298 395
Exchange rate difference in cash and cash equivalents -2 0 -7 0
Cash and cash equivalents at the end of the period 860 298 860 298

Parent Company Income Statement

SEK million Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Revenue 3 13 65 60
Other operating revenue 0 0 0 0
Total operating income 3 13 65 60
Staff costs -16 -13 -48 -38
Other external costs -28 -11 -77 -53
Operating profit/loss -41 -11 -60 -31
Profit/loss from financial items
Other interest income and similar income items 190 276 201 283
Interest expenses and similar income items -5 -9 -30 -26
Profit after financial items 144 256 111 226
Year-end appropriations
Year-end appropriations 83 55 83 55
Profit before tax 227 311 194 281
Taxes -7 -8 0 -2
PROFIT FOR THE PERIOD 220 303 194 279

Parent Company Balance Sheet

SEK million 31 Dec
2020
31 Dec
2019
ASSETS
Fixed assets
Other intangible fixed assets 3 1
Tangible fixed assets 4 6
Total 7 7
Financial fixed assets
Participations in group companies 311 310
Deferred tax receivables 9 10
Total 320 320
Total fixed assets 327 327
Current assets
Current receivables
Receivables from group companies 1 120 752
Tax receivables 4 1
Other receivables 2 1
Prepaid expenses and accrued income 8 7
Total 1 134 761
Cash and bank balances 496 137
Total current assets 1 630 898
TOTAL ASSETS 1 957 1 225
SEK million 31 Dec
2020
31 Dec
2019
TOTAL EQUITY AND LIABILITIES
Equity
Share capital
4 3
Restricted equity 4 3
Share premium reserve
Retained earnings
This year's profit or loss
863
361
194

157
279
Unrestricted equity 1 418 436
Total equity 1 422 439
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to credit institutions
Liabilities to group companies
0
10
30
Total non-current liabilities 0 40
Current liabilities
Current interest-bearing liabilities
Liabilities to credit institutions
Liabilities to group companies
Total
0
501
501
20
702
722
Current non-interest-bearing liabilities
Accounts payable
Liabilities to group companies
Other liabilities
Accrued expenses and prepaid income
6
10
1
17
9
2
1
12
Total 34 24
Total current liabilities 535 746
TOTAL EQUITY AND LIABILITIES 1 957 1 225

Notes and other financial information

NOTE 1. ACQUISITIONS

No acquisitions were made during the period nor after the balance sheet date until the publication of this report.

NOTE 2. ACCOUNTING POLICIES

The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act.

Consolidated financial statements are prepared in accordance with IFRS from the 2015 financial year. The accounting principles applied in the interim report are described in the annual report for 2019 on pages 83–88. Accounting principles and calculation methods for the Group, in addition to those described below, are unchanged compared with the annual report last year.

New standards applied from 1 January 2020 Other amended IFRS standards applied from 2020 have no or little impact on Wästbygg Gruppen's financial reporting.

Standards, amendments and interpretations concerning existing standards that have not yet entered into force and are not applied prematurely by the Group

As of the date of approval of this financial report, certain new standards, amendments and interpretations of existing standards that have not yet entered into force have been published by IASB. These have not been applied prematurely by the Group and the changes are not expected to have a significant impact on the financial statements during the financial year in which they are to be applied for the first time and therefore no information has been provided.

Reporting of fair value

As can be seen from the segment reporting for Commercial on page 9, the construction of a secure housing project for own management in the Inwita Fastigheter group company is in progress. The company has chosen to value investment properties and investment properties under construction at fair value in accordance with IAS 40 Investment Properties.

Classification of rights of use

Previously, rights of use in the consolidated balance sheet have been included in the item Tangible fixed assets, Inventory, tools and installations, while leasing liabilities were included in the item Other non-current liabilities and Current non-interest-bearing liabilities, Other liabilities. As of the interim report for January – September 2020, Right of use assets are reported on a separate line in the balance sheet.

Correction of errors: Consolidation of owner-occupier projects that the company is developing

The Wästbygg Group has followed the dialogue that Finansinspektionen has had during a period with listed housing developers regarding the reporting of owner-occupied projects of own development and where Finansinspektionen believes that consolidation of these owner-occupied associations should take place.

As of the interim report for the period January–June 2020, the Group therefore applies a different assessment regarding the reporting of owner-occupied projects of own development than before, and which is adapted to the assessment made by Finansinspektionen from IFRS 10 consolidated accounts. The same change has been made by the vast majority of companies working with residential development. The assessment includes both clarification of the criteria to be used to assess whether control exists and how these should be weighted against each other. This change is classified as Correction of Errors in accordance with IAS 8 Accounting Principles, changes in estimates and judgments and errors.

The change means that the owner-occupied associations for which Wästbygg has ongoing assignments within the framework of project development activities are consolidated during the production phase. The consolidated balance sheet and income statement thus include all the owner-occupied associations' assets, equity and liabilities as well as income and expenses.

Consolidating owner-occupied associations in accordance with IFRS also means that revenues and results for project development of owner-occupied flats are reported at the time when Wästbygg fulfils its performance commitment, that is when the end customer has access to the flat.

Previously, revenue recognition was applied over time, that is owner-occupied projects of own development were recognised in profit or loss in step with the progress of each project. A complete recalculation has taken place of the years 2017–2019 in this report according to the new accounting principle as well as the opening balance as of 1 January 2017. Bridges have been established for all periods to show differences between the current and previous assessment.

The change only applies to owner-occupied flats of own development and has thus only affected the Residential business area. Revenue recognition over time is applied just as before for proprietary rental properties, commercial properties and logistics and industrial facilities.

The following pages shows the reconciliation between previously used principle (Segment) recalculated to a changed principle (IFRS) in the income statement and balance sheet for the years 2020 and 2019.

CONSOLIDATED INCOME Jan-Dec 2020 Jan-Dec 2019
STATEMENT, SEK million Segment IFRS Effect Segment IFRS Effect
Revenue 3 801 3 620 -181 3 905 3 889 -16
Costs in production -3 281 -3 132 149 -3 517 -3 473 44
Gross profit/loss 520 488 -32 388 416 28
Sales and administration costs -269 -269 - -201 -201 0
Other operating revenue 4 4 - 6 6 0
Other operating costs -1 0 1 -1 -1 0
Other profit/loss 254 223 -31 192 220 28
Profit/loss from financial items
Profit shares from joint venture 0 0 - 0 0 0
Financial revenue 12 9 -3 8 8 0
Financial costs -7 -7 - -15 -15 0
Profit after financial items 259 225 -34 185 213 28
Värdeförändring fastigheter 6 6 - 0 0 0
Taxes 3 4 1 2 2 0
PROFIT FOR THE PERIOD 268 235 -33 187 215 28
Profit relating to:
- the parent company's shareholders 268 235 -33 187 215 28
- holdings without controlling influence 0 0 - 0 0 -
CONSOLIDATED GROUP 31 Dec 2020 31 Dec 2019
BALANCE SHEET, SEK million Segment IFRS Effect Segment IFRS Effect
ASSETS
Fixed assets
Intangible fixed assets
Goodwill 229 229 - 229 229 -
Other intangible fixed assets 8 8 - 6 6 -
Total 237 237 - 235 235 -
Tangible fixed assets
Ongoing new plants 59 59 - - - -
User rights assets 30 30 - 44 44 -
Inventory, tools and installations 6 6 - 8 8 -
Total 95 95 - 52 52 -
Financial fixed assets
Shares in joint ventures 11 11 - 11 11 -
Deferred tax receivables 38 42 4 32 35 3
Non-current financial assets 0 0 - 0 0 -
Total 49 53 4 43 46 3
Total fixed assets 381 385 4 330 333 3
Current assets
Development properties, etc. 75 75 - 83 83 -
Tenant-owner association flats of own development under production - 740 740 - 534 534
Accounts receivable 506 506 - 369 369 -
Accrued but not invoiced 282 272 -10 204 170 -34
Tax receivables 26 26 - 9 9 -
Receivables from group companies 12 12 - 12 12 -
Other receivables 797 277 -520 572 307 -265
Prepaid costs and accrued income 17 17 - 29 29 -
Cash and cash equivalents 776 860 84 285 298 13
Total current assets 2 491 2 785 294 1 563 1 811 248
TOTAL ASSETS 2 872 3 170 298 1 893 2 144 251
CONSOLIDATED GROUP 31 Dec 2020 31 Dec 2019
BALANCE SHEET, SEK million Segment IFRS Effect Segment IFRS Effect
TOTAL EQUITY AND LIABILITIES
Equity
Share capital 4 4 - 3 3 -
Other contributed capital 946 946 - 83 83 -
Retained earnings 431 408 -23 319 268 -51
This year's comprehensive income 266 232 -34 187 215 28
Total equity attributable to the company's shareholders 1 647 1 590 -57 592 569 -23
Holdings without controlling influence 3 3 - 3 3 -
Total equity 1 650 1 593 -57 595 572 -23
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies - - - 30 30 -
Liabilities to credit institutions 0 58 58 10 10 -
Debts user rights 16 16 - 30 30 -
Total 16 74 58 70 70 -
Non-current non-interest-bearing liabilities
Deferred tax liabilities 3 4 1 1 1 -
Other provisions 71 63 -8 38 20 -18
Total 74 67 -7 39 21 -18
Total non-current liabilities 90 141 51 109 91 -18
Current liabilities
Current interest-bearing liabilities
Debts user rights 16 16 - 17 17 -
Liabilities to credit institutions 0 304 304 80 230 150
Total 16 320 304 97 247 150
Current non-interest-bearing liabilities
Accounts payable 244 247 3 495 516 21
Advance from customer 379 362 -17 374 362 -12
Tax liabilities 2 2 - 0 0 -
Other liabilities 362 376 14 125 258 133
Accrued expenses and prepaid income 129 129 - 98 98 -
Total 1 116 1 116 - 1 092 1 234 142
Total current liabilities 1 132 1 436 304 1 189 1 481 292
TOTAL EQUITY AND LIABILITIES 2 872 3 170 298 1 893 2 144 251

QUARTERLY OVERVIEW 2020

CONSOLIDATED INCOME Jan-Mar 2020 Apr-Jun 2020 Jul-Sep 2020 Oct-Dec 2020
STATEMENT, SEK million Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect
Revenue 901 926 25 1 124 1 050 -74 773 720 -53 1 002 924 -78
Costs in production -824 -848 -24 -978 -913 65 -654 -612 42 -824 -758 66
Gross profit/loss 77 78 1 146 137 -9 119 108 -11 178 166 -12
Sales and administration costs -54 -54 - -63 -63 - -52 -52 - -101 -101 -
Other operating revenue 1 1 - 3 3 - 0 0 - 0 0 -
Other operating costs 0 0 - 0 0 - 0 0 - 0 0 -
Other profit/loss 24 25 1 86 77 -9 67 56 -11 77 65 -12
Profit/loss from financial items
Profit shares from joint venture 0 0 - 0 0 - 0 0 - 0 0 -
Financial revenue 1 1 - 4 4 - 4 4 - 3 0 -3
Financial costs -3 -3 - -2 -2 - -1 -1 - -1 -1 -
Profit after financial items 22 23 1 88 79 -9 70 59 -11 79 64 -15
Change in value of real estate 0 0 - 0 0 - 3 3 - 3 3 -
Taxes 2 2 - -9 -10 -1 -5 -4 1 15 15 0
PROFIT FOR THE PERIOD 24 25 1 79 69 -10 68 58 -10 97 82 -15
Profit relating to:
- the parent company's shareholders 24 25 1 79 69 -10 68 58 -10 97 82 -15
- holdings without controlling influence 0 0 - 0 0 - 0 0 - 0 0 -
CONSOLIDATED GROUP 31 Mar 2020 30 Jun 2020 30 Sep 2020 31 Dec 2020
BALANCE SHEET, SEK million Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect
ASSETS
Fixed assets
Intangible fixed assets
Goodwill 229 229 - 229 229 - 229 229 - 229 229 -
Other intangible fixed assets 7 7 - 7 7 - 7 7 - 8 8 -
Total 236 236 - 236 236 - 236 236 - 237 237 -
Tangible fixed assets
Ongoing new plants 13 13 - 24 24 - 43 43 - 59 59 -
User rights assets 40 40 - 36 36 - 34 34 - 30 30 -
Inventory, tools and installations 7 7 - 7 7 - 6 6 - 6 6 -
Total 60 60 - 67 67 - 83 83 - 95 95 -
Financial fixed assets
Shares in joint ventures 11 11 - 11 11 - 11 11 - 11 11 -
Deferred tax receivables 33 34 1 33 34 1 22 25 3 38 42 4
Non-current financial assets 0 0 - 0 0 - 0 0 - 0 0 -
Total 44 45 1 44 45 1 33 36 3 49 53 4
Total fixed assets 340 341 1 347 348 1 352 355 3 381 385 4
Current assets
Development properties, etc. 82 82 - 89 89 - 96 96 - 75 75 -
Tenant-owner association flats of
own development under production - 486 486 - 568 568 - 629 629 - 740 740
Accounts receivable 263 253 -10 372 347 -25 324 324 - 506 506 -
Accrued but not invoiced
Tax receivables
270
17
224
17
-46
-
330
12
272
12
-58
-
375
30
367
30
-8
-
282
26
272
26
-10
-
Receivables from group companies 12 12 - 12 12 - 12 12 - 12 12 -
Other receivables 419 172 -247 345 62 -283 445 98 -347 797 277 -520
Prepaid costs and accrued income 13 13 - 16 16 - 17 17 - 17 17 -
Cash and cash equivalents 83 99 16 73 80 7 76 105 29 776 860 84
Total current assets 1 159 1 358 199 1 249 1 458 209 1 375 1 678 303 2 491 2 785 294
TOTAL ASSETS 1 499 1 699 200 1 596 1 806 210 1 727 2 033 306 2 872 3 170 298
CONSOLIDATED GROUP 31 Mar 2020 30 Jun 2020 30 Sep 2020 31 Dec 2020
BALANCE SHEET, SEK million Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect
TOTAL EQUITY AND LIABILITIES
Equity
Share capital 3 3 - 3 3 - 3 3 - 4 4 -
Other contributed capital 83 83 - 83 83 - 83 83 - 946 946 -
Retained earnings 428 406 -22 429 406 -23 431 408 -23 431 408 -23
This year's comprehensive income 24 25 1 103 94 -9 169 150 -19 266 232 -34
Total equity attributable to the
- company's shareholders 538 517 -21 618 586 -32 686 644 -42 1 647 1 590 -57
- holdings without controlling influence 3 3 - 3 3 - 3 3 - 3 3 -
Total equity 541 520 -21 621 589 -32 689 647 -42 1 650 1 593 -57
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies 30 30 - 30 30 - 30 30 - - - -
Liabilities to credit institutions 5 5 - - - - - - - 0 58 58
Debts user rights 26 26 - 22 22 - 20 20 - 16 16 -
Total 61 61 - 52 52 - 50 50 - 16 74 58
Non-current non-interest-bearing liabilities
Deferred tax liabilities 2 2 - 2 2 - 2 2 - 3 4 1
Other provisions 39 22 -17 40 23 -17 40 23 -17 71 63 -8
Total 41 24 -17 42 25 -17 42 25 -17 74 67 -7
Total non-current liabilities 102 85 -17 94 77 -17 92 75 -17 90 141 51
Current liabilities
Current interest-bearing liabilities
Debts user rights 17 17 - 17 17 - 17 17 - 16 16 -
Overdraft facility - - - 8 8 - - - - - - -
Liabilities to credit institutions 20 172 152 20 204 184 15 259 244 0 304 304
Total 37 189 152 45 229 184 32 276 244 16 320 304
Current non-interest-bearing liabilities
Accounts payable 282 255 -27 370 342 -28 328 329 1 244 247 3
Advance from customer 343 324 -19 279 267 -12 296 282 -14 379 362 -17
Tax liabilities 0 0 - 0 0 - 6 6 - 2 2 -
Other liabilities 82 214 132 83 198 115 190 324 134 362 376 14
Accrued expenses and prepaid income 112 112 - 104 104 - 94 94 - 129 129 -
Total 819 905 86 836 911 75 914 1 035 121 1 116 1 116 -
Total current liabilities 856 1 094 238 881 1 140 259 946 1 311 365 1 132 1 436 304
TOTAL EQUITY AND
LIABILITIES 1 499 1 699 200 1 596 1 806 210 1 727 2 033 306 2 872 3 170 298

QUARTERLY OVERVIEW 2019

CONSOLIDATED INCOME Jan-Mar 2019 Apr-Jun 2019 Jul-Sep 2019 Oct-Dec 2019
STATEMENT, SEK million Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect
Revenue 878 834 -44 1 021 972 -49 865 1 037 172 1 141 1 046 -95
Costs in production -783 -747 36 -908 -859 49 -800 -920 -120 -1 026 -947 79
Gross profit/loss 95 87 -8 113 113 - 65 117 52 115 99 -16
Sales and administration costs -46 -46 - -57 -57 - -37 -37 - -61 -61 -
Other operating revenue 1 1 - 0 0 - 6 6 - -1 -1 -
Other operating costs -1 -1 - -3 -3 - 0 0 - 3 3 -
Other profit/loss 49 41 -8 53 53 - 34 86 52 56 40 -16
Profit/loss from financial items
Profit shares from joint venture 0 0 - 0 0 - 2 2 - -2 -2 -
Financial revenue 3 3 - 2 2 - 2 2 - 1 1 -
Financial costs -5 -5 - -3 -3 - -3 -3 - -4 -4 -
Profit after financial items 47 39 -8 52 52 - 35 87 52 51 35 -16
Taxes 0 1 1 3 3 - -5 -7 -2 4 4 -
PROFIT FOR THE PERIOD 47 40 -7 55 55 - 30 80 50 55 39 -16
Profit relating to:
- the parent company's shareholders 47 40 -7 55 55 - 30 80 50 55 39 -16
- holdings without controlling influence 0 0 - 0 0 - 0 0 - 0 0 -
CONSOLIDATED GROUP 31 Mar 2019 30 Jun 2019 30 Sep 2019 31 Dec 2019
BALANCE SHEET, SEK million Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect Segment IFRS Effect
ASSETS
Fixed assets
Intangible fixed assets
Goodwill 229 229 - 229 229 - 229 229 - 229 229 -
Other intangible fixed assets 10 10 - 10 10 - 10 10 - 6 6 -
Total 239 239 - 239 239 - 239 239 - 235 235 -
Tangible fixed assets
Ongoing new plants - - - - - - - - - - - -
User rights assets 52 52 - 51 51 - 46 46 - 44 44 -
Inventory, tools and installations 9 9 - 8 8 - 8 8 - 8 8 -
Total 61 61 - 59 59 - 54 54 - 52 52 -
Financial fixed assets
Shares in joint ventures 10 12 2 13 16 3 14 16 2 11 11 -
Deferred tax receivables 26 30 4 29 33 4 27 28 1 32 35 3
Non-current financial assets 3 3 - 14 14 - 15 15 - 0 0 -
Total 39 45 6 56 63 7 56 59 3 43 46 3
Total fixed assets 339 345 6 354 361 7 349 352 3 330 333 3
Current assets
Development properties, etc. 71 71 - 58 58 - 89 89 - 83 83 -
Tenant-owner association flats of
own development under production - 408 408 - 430 430 - 178 178 - 534 534
Accounts receivable 387 379 -8 455 447 -8 441 430 -11 369 369 -
Accrued but not invoiced 274 226 -48 248 192 -56 284 277 -7 204 170 -34
Tax receivables 17 17 - 22 22 - 24 24 - 9 9 -
Receivables from group companies 12 12 - 12 12 - 12 12 - 12 12 -
Other receivables 320 71 -249 383 120 -263 386 269 -117 572 307 -265
Prepaid costs and accrued income 18 18 - 14 14 - 17 17 - 29 29 -
Cash and cash equivalents 96 103 7 149 155 6 165 180 15 285 298 13
Total current assets 1 195 1 305 110 1 341 1 450 109 1 418 1 476 58 1 563 1 811 248
TOTAL ASSETS 1 534 1 650 116 1 695 1 811 116 1 767 1 828 61 1 893 2 144 251
BALANCE SHEET, SEK million
Segment
IFRS
Effect
Segment
IFRS
Effect
Segment
IFRS
Effect
Segment
IFRS
Effect
TOTAL EQUITY AND LIABILITIES
Equity
Share capital
3
3
-
3
3
-
3
3
-
3
3
-
Other contributed capital
83
83
-
83
83
-
83
83
-
83
83
-
Retained earnings
378
327
-51
321
270
-51
321
270
-51
319
268
-51
This year's comprehensive income
47
40
-7
102
95
-7
132
175
43
187
215
28
Total equity attributable to the
- company's shareholders
511
453
-58
509
451
-58
539
531
-8
592
569
-23
3
3
-
3
3
-
3
3
-
3
3
-
- holdings without controlling influence
Total equity
514
456
-58
512
454
-58
542
534
-8
595
572
-23
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies
30
30
-
30
30
-
30
30
-
30
30
-
Liabilities to credit institutions
26
26
-
21
21
-
16
16
-
10
10
-
Debts user rights
38
38
-
36
36
-
31
31
-
30
30
-
Total
94
94
-
87
87
-
77
77
-
70
70
-
Non-current non-interest-bearing liabilities
Deferred tax liabilities
1
1
-
1
1
-
1
1
-
1
1
-
Other provisions
19
19
-
22
22
-
19
19
-
38
20
-18
Total
20
20
-
23
23
-
20
20
-
39
21
-18
Total non-current liabilities
114
114
-
110
110
-
97
97
-
109
91
-18
Current liabilities
Current interest-bearing liabilities
Debts user rights
17
17
-
17
17
-
18
18
-
17
17
-
Liabilities to credit institutions
20
188
168
20
188
168
20
82
62
80
230
150
Total
37
205
168
37
205
168
38
100
62
97
247
150
Current non-interest-bearing liabilities
Accounts payable
381
381
-
379
379
-
407
408
1
495
516
21
Advance from customer
246
246
-
310
310
-
435
435
-
374
362
-12
Tax liabilities
0
0
-
0
0
-
0
0
-
0
0
-
Other liabilities
147
153
6
240
246
6
127
133
6
125
258
133
Upplupna kostnader och
Accrued expenses and prepaid income
95
95
-
107
107
-
121
121
-
98
98
-
Total
869
875
6
1 036
1 042
6
1 090
1 097
7
1 092
1 234
142
Total current liabilities
906
1 080
174
1 073
1 247
174
1 128
1 197
69
1 189 1 481
292
TOTAL EQUITY AND
LIABILITIES
1 534
1 650
116
1 695
1 811
116
1 767 1 828
61
1 893 2 144
251
CONSOLIDATED GROUP 31 Mar 2019 30 Jun 2019 30 Sep 2019 31 Dec 2019

NOTE 3. SEGMENT REPORTING

Wästbygg Gruppen's segment reporting follows the Group's internal reporting to company management and the Board, as the Group's assessment is that segment reporting provides a clearer picture of the financial position at each individual

reporting occasion. Below is a summary of segment reporting. Income statement, balance sheet, changes in equity and cash flow analysis according to segment reporting are presented in Appendix 1 on pages 31–34 in this report.

SEGMENT REPORT IN SUMMARY
SEK million
Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
REVENUE
Residential 274 527 1 122 1 690
Of which internal sales 0 5 2 7
Commercial 193 184 844 982
Of which internal sales
Logistics and industry* 535 438 1 835 1 240
Of which internal sales 0
Other** 3 15 65 60
Of which internal sales 3 15 65 60
Group adjustments -3 -23 -65 -67
TOTAL 1 002 1 141 3 801 3 905
IFRS adjustment (attributable to the Residential segment) -78 -95 -181 -16
TOTAL IFRS 924 1 046 3 620 3 889
OTHER PROFIT/LOSS
Residential 4 -18 8 -37
Operating margin 1,5% -3,4% 0,7% -2,2%
Commercial 8 12 31 35
Operating margin 4,1% 6,5% 3,7% 3,6%
Logistics and industry 106 73 274 216
Operating margin 19,8% 16,7% 14,9% 17, %
Other** -41 -11 -60 -31
Group adjustments 0 1 9
TOTAL 77 56 254 192
Operating margin 7,7% 4,9% 6,7% 4,9%
Financial items 2 -5 5 -7
Change in value of real estate 3 0 6 0
PROFIT BEFORE TAX 82 51 265 185
IFRS adjustment (attributable to the Residential segment) -15 -16 -34 28
PROFIT BEFORE TAX, IFRS 67 35 231 213

* Distribution by geographic market is reported under section Logistics and industry on page 10.

** Segment Other consists of the parent company's operations and contains only internally invoiced revenue. The parent company's operations consist of support functions for the segments in the form of departments for finance, HR, KMA, sustainability, IT and communication as well as group management.

The transfer pricing between the operating segments takes place on market terms. Financial items and taxes are not distributed by segment, nor are they followed up by the highest executive decision-makers, which is why they have been excluded from the table above. The equivalent also applies to assets and liabilities. There is also no items affecting cash flow or separate reporting of depreciation per segment as those amounts are small.

NOTE 4. DISPUTES

The Group has discussions or disputes with customers or partners from time to time about commercial terms. In exceptional cases, this takes place in an arbitration or other legal instance. In some cases, they are evaluated by external legal representatives in consultation with internal resources. The report reflects at all times the best overall assessment that has been made, but actual outcomes may deviate as in some cases these are complex assessments.

NOTE 5. RISKS AND UNCERTAINTIES

The management of risks and uncertainties is an ongoing work within the Group and great focus is placed on reducing our vulnerability of various kinds. The Group's risk can primarily be divided into operational risk and financial risk. Operational risk means the risk of conducting projects with poor profitability or loss. The financial risk consists, for example, of access to capital and proper management of funds. In addition to these two, market changes, political regulations and access to the right staff at the right time also pose risks.

A more comprehensive risk analysis can be found in the company's annual report for 2019 on pages 66–70. No significant changes have taken place that have changed these reported risks. However, the COVID-19 pandemic has occurred as an additional factor and the company actively strives to conduct its operations in accordance with the Public Health Agency of Sweden's guidelines and other restrictions. The company has also paid special attention to how the effects of COVID-19 affect and may affect future development and/or risks that may affect financial reporting in the future. The assessment is that the impact on the company is limited. However, it is impossible to get an overview of the final consequences.

NOTE 6. PARENT COMPANY AND OTHER GROUP ITEMS

The parent company's intra-group revenues for the quarter amounted to SEK 3 million (13) and the profit after net financial items was SEK 144 million (256).

The intra-group revenues for the year amounted to SEK 65 million (60) and the profit after net financial items was SEK 111 million (226). The profit includes dividends from subsidiaries of SEK 184 million (273).

NOTE 7. TRANSACTIONS WITH RELATED COMPANIES

Wästbygg's largest owner is M2 Holding AB. M2 is owned and controlled by Rutger Arnhult, who is also a board member of this company. The M2 Group has significant direct and indirect ownership interests in Corem Property Group AB and Klövern AB. Rutger Arnhult is a board member of Corem Property Group, a board member and CEO of Klövern. Corem Property Group and Klövern are part of the group of related companies but are not group companies connected with Wästbygg.

Wästbygg carries out contracting activities in competition for Klövern, Corem Property Group and M2 according to the table here. Corem also includes a project development gain. As of the balance sheet date, there were no financial liabilities to M2 compared to SEK 24 million including accrued interest as per December 31, 2019. Neither were there any accounts receivable to related parties compared to SEK 30 million as per December 31, 2019.

ACCRUED REVENUE

SEK million Oct-Dec Oct-Dec
2020
2019 Jan-Dec
2020
Jan-Dec
2019
Klövern* 5 1 8 15
Corem 38 122 202 150
M2 2 64 70 70
TOTAL 45 187 280 235

*The figures include accrued revenue for Tobin Properties, which is a wholly owned subsidiary of Klövern.

NOTE 8. FINANCIAL INSTRUMENTS

The Group's financial instruments essentially consist of financial assets and financial liabilities that are valued at accrued acquisition value. Financial instruments that are valued at fair value consist of currency futures and contingent purchase consideration, which amount to insignificant amounts. Further information can be found in the Group's annual report for 2019 in Note 1 Accounting Principles and Note 23 Financial Risk Management and Financial Instruments.

At the end of the period, the Group had no financial instruments.

WÄSTBYGG GROUP'S BUSINESS MODEL

A description of the company's business model can be found in the annual report for 2019.

Key Ratios and Definitions

The group

Wästbygg presents certain financial measures in the interim report that are not defined by IFRS. The key ratios on page 3 are chosen on the basis that they are considered to give a fair view of the Company's operations and development. They are also commonly used among other companies, which facilitates comparisons. The key figures listed below are not defined in accordance with IFRS unless otherwise stated.

Segments

As for the key ratios provided in the segment sections and in Appendix 1 on page 33–36, they are regarded as alternative key ratios. They have the same definition as key ratios below, but are based on segment figures.

Key Ratios Definitions Purpose
Balance sheet total Calculated as the sum of assets. The measure can be used to assess
financial risk.
Equity/assets ratio Equity in relation to the balance sheet total. The measurement is deemed to
describe the capital structure of the
company.
Return on equity Profit for rolling 12 months divided by average
equity for the period.
Makes it easier for investors who want
to assess the company's ability to
generate a return on equity.
Operating capital Current assets (excluding cash and cash equiva
lents and tax receivables) less current non-inte
rest-bearing liabilities (excluding tax liabilities).
Makes it easier for investors who want
to assess the company's capital tied up
in relation to its competitors.
Interest-bearing net cash/net
liabilities
Interest-bearing assets (including cash and cash
equivalents and receivables from group compa
nies) less interest-bearing liabilities.
Is assessed by the company to faci
litate analysis of the company's real
indebtedness.
Earnings per share per IFRS Profit/loss attributable to the company's share
holders in relation to the number of outstanding
shares at the end of the period.
The measure is used to illustrate each
share's share of the period's earnings.
Equity per share Equity attributable to the company's sharehol
ders in relation to the number of outstanding
shares at the end of the period.
The measure is used to illustrate each
share's share of equity.
New orders The value of projects received and changes
to existing projects during the current period.
Tenant-owner association projects of own deve
lopment are included in new orders as soon as
a construction agree-ment has been signed for
construction.
The measure can be used to assess
the company's sales during the current
period.
Order backlog The value at the end of the period of the remai
ning unprocessed project revenue in pending
assignments. Tenant-owner association projects
of own development are included in the order
stock as soon as a construction agreement has
been signed for construction.
The measure can be used to assess the
company's revenues in future periods.

The Wästbygg share

Wästbygg Gruppen AB was listed on Nasdaq Stockholm on 13 October 2020 under the ticker code WBGR. Between the listing date and year end, 5.65 million shares were traded, based on information from Nasdaq Stockholm and Monitor by Modular Finance AB. On 31 December the share price closed at SEK 98.45, equivalent to a stock market value of SEK 3,184 million calculated based on the number of outstanding shares.

As per the balance sheet date, the share capital amounted to SEK 3,593,352, divided into 620,000 Class A shares and 31,720,165 Class B shares. The Share capital development table on the next page shows how the share capital and the number of shares have developed since the company was registered.

At the end of the year Wästbygg had 6,017 shareholders. The proportion of foreign ownership was just over 4 per cent of the share capital. The table below shows the ten confirmed largest shareholders as of 31 December.

DIVIDEND

Wästbygg has a long-term goal for the dividend over time to amount to 40 per cent of net profit based on segment reporting. The Board of Directors proposes that the Annual General Meeting adopt a dividend of SEK 3.30 per share, which corresponds to a dividend yield of 3.35 per cent based on the share price as of 31 December 2020.

THE WÄSTBYGG GROUP'S TEN LARGEST SHAREHOLDERS

Name Number of
Class A shares
Number of
Class B shares
Total number
of shares
Proportion
of capital
Proportion
of votes
M2 Holding AB (Rutger Arnhult) 337,500 19,111,500 19,449,000 60,1% 59,3%
Fino Förvaltning AB (Jörgen Andersson) 282,500 1,656,000 1,938,500 6,0% 11,8%
Länsförsäkringar Fonder 1,632,500 1,632,500 5,0% 4,3%
Svolder 1,575,377 1,575,377 4,9% 4,2%
AFA Försäkring 1,000,000 1,000,000 3,1% 2,6%
Öhman Fonder 698,000 698,000 2,2% 1,8%
Ernström & Co AB 678,001 678,001 2,1% 1,8%
Gårdarike Invest AB 300,000 300,000 0,9% 0,8%
Catella Fonder 258,001 258,001 0,8% 0,7%
Nordnet Pensionsförsäkring 252,344 252,344 0,8% 0,7%
Other share holders 4,558,442 4,558,442 14,1% 12,0%
Total 620,000 31,720,165 32,340,165 100,00% 100,00%

SHARE PRICE

SHAREHOLDER DISTRIBUTION

3,7% Anonymous ownership

4,2% Pension & Insurance

5,0% Investment &

5,5% Private individuals

10,6% Fund management

0,1% Foundations

71,0% Other legal entities

Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).

SHARE CAPITAL DEVELOPMENT

Decision
date
Description Change in
share capital*
Change
in shares
Of which
Class A
Of which
Class B
Total
number
of shares
Of which
Class A
Of which
Class B
Quo
tient
value*
Total
share
capital*
23 Dec
2011
Registration of
the company
50,000 50,000 - - 50,000 - - 1,00 50,000
17 Feb
2012
Consolidation
of shares
0 1,000 - - 1,000 - - 50,00 50,000
28 Aug
2013
New share
issue
2,500,000 50,000 - - 51,000 - - 50,00 2,550,000
23 Mar
2020
Division of
shares (split)
0 22,899,000 - - 22,950,000 - - 0,11 2,550,000
23 Mar
2020
Conversion
of shares
0 0 - - 22,950,000 620,000 22,330,000 0,11 2,550,000
Oct
2020
New share
issue
925,926 8,333,333 - 8,333,333 31,283,333 620,000 30,663,333 0,11 3,475,926
Nov
2020
New share
issue
117,426 1,056,832 - 1,056,832 32,340,165 620,000 31,720,165 0,11 3,593,352

* SEK

The Board

BOARD CHANGES

Joacim Sjöberg was elected to the Wästbygg Group's Board at an Extraordinary General Meeting on 23 January 2020. The board was therefore expanded with a member.

DECLARATION

The Board of Directors and the President declares that the interim report provides a fair overview of the Parent Company's and the Group's operations, position and results and describes significant risks and uncertainties that the Parent Company and the companies included in the Group face. The report has not been reviewed by the company's auditors.

Gothenburg 18 February 2021

Wästbygg Gruppen AB (publ)

CECILIA MARLOW JÖRGEN ANDERSSON LENNART EKELUND Chairman Board member Board member

CHRISTINA KÄLLENFORS JOACIM SJÖBERG Board member Board member

The information is such that the Wästbygg Group (publ) must publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication on 18 February 2021 at 08:00.

This interim report has been published in Swedish and English. In the event of a discrepancy between the language versions, the Swedish version shall prevail.

Appendix 1

The Wästbygg Group's segment report contains alternative key ratios to describe how the business develops over time and provide an opportunity for a clearer comparison between different periods. These also follows the Group's internal reporting to company management and the Board, as the Group's assessment is that segment reporting provides a clearer picture of the Group's financial position at each individual

reporting occasion. The alternative key figures are a complement to reporting in accordance with IFRS. The difference between the two ways of reporting is described in Note 2 and concerns how tenant-owner association projects of own development are reported. Below and on the following three pages are the income statement, balance sheet, changes in equity and cash flow analysis according to segment reporting.

CONSOLIDATED INCOME STATEMENT –
SEGMENT REPORT, SEK million
Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Revenue
Costs in production
1 002
-824
1 141
-1 026
3 801
-3 281
3 905
-3 517
Gross profit/loss 178 115 520 388
Sales and administration costs -101 -61 -269 -201
Other operating revenue
Other operating costs
0
0
-1
3
4
-1
6
-1
Other profit/loss 77 56 254 192
Profit/loss from financial items
Profit shares from joint venture
Financial revenue
Financial costs
0
3
-1
-2
1
-4
0
12
-7
0
8
-15
Profit after financial items 79 51 259 185
Change in value of real estate 3 0 6
Profit before tax 82 51 265 185
Taxes 15 4 3 2
PROFIT FOR THE PERIOD 97 55 268 187
Profit attributable to:
- the parent company's shareholders
- holdings without controlling influence
Earnings per share, SEK*
97
0
3,16
55
0
2,38
268
0
10,75
187
0
8,15
Number of shares at the end of the period (thousands)
Average number of shares (thousands)
32 340
30 782
22 950
22 950
32 340
24 913
22 950
22 950

* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

CONSOLIDATED REPORT ON TOTAL PROFIT –
SEGMENT REPORT, SEK million
Oct-Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Profit for the period 97 55 268 187
Other comprehensive income that can be transferred
to the income statement
Currency difference when translating foreign operations
0 0 -2 0
TOTAL PROFIT FOR THE PERIOD 97 55 266 187
Total profit attributable to:
- the parent company's shareholders
- holdings without controlling influence
97
0
55
0
266
0
187
0
CONSOLIDATED BALANCE SHEET –
SEGMENT REPORT, SEK million
31 Dec
2020
31 Dec
2019
ASSETS
Fixed assets
Intangible fixed assets
Goodwill 229 229
Other intangible fixed assets 8 6
Total 237 235
Tangible fixed assets
Investment properties 59
User rights assets 30 44
Inventory, tools and installations 6 8
Total 95 52
Financial fixed assets
Shares in joint ventures 11 11
Deferred tax receivables 38 32
Non-current financial assets 0 0
Total 49 43
Total fixed assets 381 330
Current assets
Development properties, etc. 75 83
Accounts receivable 506 369
Accrued but not invoiced 282 204
Tax receivables 26 9
Receivables from group companies 12 12
Other receivables 797 572
Prepaid costs and accrued income 17 29
Cash and cash equivalents 776 285
Total current assets 2 491 1 563
TOTAL ASSETS 2 872 1 893
CONSOLIDATED BALANCE SHEET –
SEGMENT REPORT, SEK million
31 Dec
2020
31 Dec
2019
TOTAL EQUITY AND LIABILITIES
Equity
Share capital* 4 3
Other contributed capital 946 83
Retained earnings 431 319
This year's profit or loss 266 187
Total equity attributable to the company's shareholders 1 647 592
Holdings without controlling influence 3 3
Total equity 1 650 595
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies 30
Liabilities to credit institutions 0 10
Debts user rights 16 30
Total 16 70
Non-current non-interest-bearing liabilities
Deferred tax liabilities 3 1
Other provisions 71 38
Total 74 39
Total non-current liabilities 90 109
Current liabilities
Current interest-bearing liabilities
Debts user rights 16 17
Liabilities to credit institutions 0 80
Total 16 97
Current non-interest-bearing liabilities
Accounts payable 244 495
Advance from customer 379 374
Tax liabilities
Other liabilities
2
362
0
125
Accrued expenses and prepaid income 129 98
Total 1 116 1 092
Total current liabilities 1 132 1 189
TOTAL EQUITY AND LIABILITIES 2 872 1 893
INTEREST-BEARING NET CASH/NET LIABILITIES
Interest-bearing assets 961 296
Interest-bearing liabilities 33 167
Interest-bearing net cash/net liabilities 928 129

* For information on the development of the share capital during 2020 as a result of the share split and new share issues, see the table on page 31.

CHANGES IN THE GROUP'S EQUITY IN
SUMMARY – SEGMENT REPORT, SEK million
Jan-Dec
2020
Jan-Dec
2019
Equity attributable to the parent company's owners
Amount at the beginning of the period 592 466
Effect of change IFRS 16 -1
New issue of shares 901
Transaction costs new issue of shares -37
Dividend -75 -60
Total profit/loss for the period 266 187
Amount at the end of the period 1 647 592
Holdings without controlling influence
Amount at the beginning of the period 3 3
Total profit/loss for the period 0 0
Amount at the end of the period 3 3
TOTAL EQUITY 1 650 595
GROUP CASH FLOW STATEMENT –
SEGMENT REPORT, SEK million
Oct–Dec
2020
Oct-Dec
2019
Jan-Dec
2020
Jan-Dec
2019
Day-to-day operations
Profit/loss before financial items 77 56 254 192
Adjustment for items not included in cash flow 36 21 56 18
Received interest 3 1 12 8
Paid interest -1 -4 -7 -15
Paid tax -1 13 -16 1
Cash flow from operating activities before changes in working capital 114 87 299 204
Cash flow from changes in working capital
Increase (-)/decrease (+) of accounts receivable -188 72 -144 -100
Increase (-)/decrease (+) of other operating receivables -238 -104 -286 -247
Increase (+)/decrease (-) of accounts payable -83 89 -245 -38
Increase (+)/decrease (-) of operating liabilities 298 -76 281 108
Cash flow from the day-to-day operations -97 68 -95 -73
Investment activities
Investments in businesses, including additional purchase sums -4 -8
Acquisitions of intangible fixed assets -1 2 -3 -1
Investments in investment properties -13 -53
Acquisitions of other tangible fixed assets -1 0 -4 -2
Cash flow from investing activities -15 -2 -60 -11
Financing activities
New issue of shares 901 901
Transaction costs new issue of shares -37 -37
Paid dividend -75 -60
Amortisation of loan liabilities -49 -5 -135 -20
Raised loan liabilities 60 60
Cash flow from financing activities 815 55 654 -20
CASH FLOW FOR THE PERIOD 703 121 499 -104
Cash and cash equivalents at the start of the period 76 165 285 389
Exchange rate difference in cash and cash equivalents -3 -1 -8 0
Cash and cash equivalents at the end of the period 776 285 776 285

It started in 1981...

Wästbygg was founded in Borås in 1981. Originally, it was a local construction company, but relatively quickly the company also began to expand outside the immediate region.

STRONG POSITION IN PRIORITY MARKETS

Today, the Wästbygg Group is a construction and project development company that has long been well established in the most expansive markets in Sweden. We have our own offices in Gothenburg, Stockholm, Malmö, Borås, Jönköping, Helsingborg and Varberg, but we are also represented via the group company Logistic Contractor in our Nordic neighbours Norway, Denmark and Finland. The Wästbygg Group is listed on Nasdaq Stockholm as of 13 October 2020.

The company is primarily focused on the three segments Residential, Commercial (where community service properties are included) and Logistics and industry. We also work with project development in all segments and our expertise extends from acquisition/allocation of land to the finished property. All ongoing and completed projects are presented on our website.

A SUSTAINABLE BUSINESS

The Wästbygg Group's business concept is to develop and build sustainable, modern and efficient homes, commercial properties and logistics and industrial facilities in mutual trust with our clients. We take our mission as community builders very seriously. Within our area of activity, we want to contribute to a more sustainable society - ecologically, socially and economically - and thereby improve people's living environments.

Environmentally certified buildings are a way to safeguard the future. We have extensive experience of building according to the most common certification systems on the Swedish market:

Miljöbyggnad, Svanen, Breeam and Green Building. We are also certified according to the Nordic Ecolabel Svanen, which means that we have the right to label our self-developed properties with the Nordic Ecolabel Svanen.

Since the mid-1990s, we have worked with a particular focus on developing our quality and environmental work. Today we have a self-developed management system with detailed procedures and driving schedules in quality, environment and the work environment. The group company Wästbygg AB is certified according to ISO 9001, 14001 and 45001.

Overview, The Wästbygg Group

CALENDAR

Annual report 2020 26 March 2021
Interim report January – March 6 May 2021
Annual General Meeting 6 May 2021
Interim report January – June 26 August 2021
Interim report January – September 9 November 2021
Year-end report 2021 11 February 2022

CONTACTS

For further information, please contact:

Jörgen Andersson, CEO Phone +46 703 23 32 02, email [email protected]

Jonas Jönehall, CFO and Vice President Phone +46 739 20 19 01, email [email protected]

Marie Lindebäck, Head of IR and Deputy Head of Sustainablity Phone +46 734 67 20 12, email [email protected]

Investor relations [email protected]

Wästbygg Gruppen AB (publ) • Sofierogatan 3B • 412 51 Göteborg • Sweden Company registration number 556878-5538 Phone +46 31 733 23 00 www.wastbygg.se • [email protected] Registered Office: Gothenburg

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