Annual Report • Jan 25, 2017
Annual Report
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The number of housing units sold for the period was 2,717 (2,299). The number of production starts of housing units in the period was 2,682 (2,849)
Net sales amounted to SEK 13,492 M (13,070)
| 2016 | 2015 | 2016 | 2015 | |
|---|---|---|---|---|
| SEK M | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Net sales | 6,584 | 7,314 | 13,492 | 13,070 |
| Operating profit | 985 | 1,015 | 1,562 | 1,377 |
| Operating margin, % | 15.0 | 13.9 | 11,6 | 10.5 |
| Profit after financial items | 918 | 939 | 1,283 | 1,033 |
| Profit for the period after tax | 717 | 723 | 1,004 | 798 |
| Earnings per share, SEK1) | 6,61 | 6,67 | 9,26 | 7,36 |
| Cash flow before financing | 1,428 | 2,131 | 536 | 1,437 |
| Net debt | 3,699 | 4,216 | 3,699 | 4,216 |
| Net debt, excl. tenant-owners associations/housing companies2) | 75 | 1,039 | 75 | 1,039 |
| Capital employed at period end | 10,134 | 9,811 | 10,134 | 9,811 |
| Return on capital employed, % | 14.6 | 12.5 | 14.6 | 12.5 |
| Equity/assets ratio, % | 33.7 | 30.5 | 33.7 | 30.5 |
| Number of housing starts | 2,682 | 2,849 | 5,832 | 6,356 |
| Number of housing units in production at period end | 9,113 | 8,778 | 9,113 | 8,778 |
| Number of housing units sold in the period | 2,717 | 2,299 | 6,233 | 6,315 |
| Number of housing units recognized in profit during the period | 2,291 | 3,174 | 4,778 | 5,736 |
1) No dilution effect.
2) For specification, see Note 2.
For definitions, see page 31.
"We finished our first year as a listed company with a strong quarter in sales and earnings terms, which contributed to our best ever full-year earnings."
We finished our first year as a listed company with a strong quarter in sales and earnings terms, which contributed to our best ever full-year earnings. Net sales for the full year increased to SEK 13,492 M (13,070) and operating profit was up to SEK 1,562 M (1,377). Profit after tax was SEK 1,004 M (798), corresponding to earnings per share of SEK 9.26 (7.36). We are generating good earnings that meet our financial targets and are moving into 2017 in a strong financial position, which supports the Board's proposal for a dividend of SEK 3.80 per share.
The demand for housing remains high on our biggest markets, Sweden and Germany, from both consumers and investors. We expect positive growth from what has been a weak Finnish economy for some years, and we are seeing indications that the St. Petersburg housing market is stabilising.
We sold more housing units in the fourth quarter than in the corresponding period of the previous year, and recovered much of the sales lag due to delays and building permit appeals in the third quarter. In full-year terms, housing sales were consistent with the previous year.
Strong operating profit for the full year We reported strong operating profit for the full year of SEK 1,562 M (1,577), and profit for the quarter was consistent with
the previous year. The number of housing units for consumers recognised for profit increased to 4,371 (3,968) for the full year, but the number for investors was reduced to 407 (1,768). We have a total of 9,113 (8,778) housing units in production with a high sales rate, which lays a good foundation for future secured results.
In the year, we reduced our debt, and are basically debt free, if we exclude the liabilities of our Swedish tenant-owner associations and Finnish housing companies. In the year, we rationalised our land portfolio further, and allocated more capital to growth regions in accordance with our strategy. With strong full-year earnings and a streamlined land portfolio, we're looking ahead. Our strategy work is continuing and we are proceeding according to our aim of growing our German business.
Overall, we are standing on a stable foundation with a broad geographical presence, have a well-differentiated offering to consumers and investors and a strong financial position. I would like to thank all my colleagues, who have helped put us in this strong position for the future. We are now continuing our work on challenging ourselves to work smarter and more efficient in our design and production to be able to deliver more affordable homes.
Joachim Hallengren, President and CEO
Bonava is a leading residential development company in Northern Europe. Born out of NCC, Bonava has been creating homes and neighbourhoods since the 1930s. Today Bonava has 1,600 employees and operates in Sweden, Germany, Finland, Denmark, Norway, St. Petersburg, Estonia and Latvia, and had sales of SEK 13.5 Bn in 2016.
To create happy neighbourhoods where people have the highest quality of life.
Our vision is to create vibrant locations where people can feel at home and be happy. Obviously, this means different things to different people and can change over time. Accordingly,
we always endeavour to learn and understand what makes people happy where they live. Dreams and wishes aside, we are convinced that vibrant locations are not created simply at the stroke of a pen. In fact, this is only the starting point.
Bonava develops and sells affordable and sustainable housing units to consumers and investors in selected markets in Sweden, Germany, Finland, Denmark, Norway, St. Petersburg, Estonia and Latvia. Bonava is active through the whole process, from land acquisition until transfer of the housing unit to the customer, in order to ensure customer focus throughout the whole value chain.
All comparative figures in this report refer to the corresponding period of the previous year. Rounding errors may occur.
The demand for housing in Sweden was high in the quarter, from both consumers and investors. Generally, the price level in Sweden increased slightly during the quarter and the full year. Demand on the German market remains positive from consumers, while the investor market is also robust. In Finland, demand was consistent with the corresponding period of the previous year, and after several years of weak economic conditions, we expect positive growth. Demand in Denmark and Norway was high in the quarter, with rising prices. The St. Petersburg housing market is showing signs of stabilising.
Operational performance
Net sales amounted to SEK 6,584 M (7,314). The decrease was mainly due to a lower number of housing units handed over to investors in Germany and Finland, while net sales to consumers increased.
In the quarter, 2,090 (2,187) housing units for consumers were recognised for profit, while 201 (987) housing units for investors were recognised for profit. The average price per housing unit for consumers was SEK 2.6 M (2.4). In the previous year, the sale of a German property portfolio comprising 321 housing units was recognised for profit, with sales of SEK 480 M in the fourth quarter. Exchange rate fluctuations had a SEK 98 M positive impact on consolidated net sales compared to the corresponding period of the previous year.
In Sweden, net sales reduced, because the number of housing units handed over to consumers was lower than the previous year. Revenue from sales of land was down on the previous year in Sweden. In Germany, the number of housing units delivered to consumers increased, at a higher average price, while revenues from investors decreased.
Net sales increased in Finland due to a higher number of housing units handed over to consumers, while no housing units for investors were recognised for profit. In Denmark– Norway, net sales were largely unchanged because more housing units were delivered to consumers, but with lower average prices. In St. Petersburg, net sales were down in year-on-year terms because fewer housing units for consumers were recognised for profit.
Operating profit was SEK 985 M (1,015) for the period. The decrease is attributable to lower net sales from investors, while profit/loss from consumers improved somewhat. Operating profit in the previous year had a SEK 51 M positive impact from the sale of the German property portfolio. Profit from land sales was SEK 197 M (115). Exchange rate fluctuations had a SEK 14 M positive impact on profit in year-on-year terms.
Sweden returned lower profit due to fewer housing units handed over to consumers, while the profit from land sales increased. In Germany, profit increased because more housing units were delivered to consumers with improved margins, while the profit from housing units for investors was lower. In Denmark–Norway, profit improved due to more projects for consumers being recognised for profit, with increased margins. In Finland, profit increased because more housing units for consumers were recognised for profit, with improved margins. In St. Petersburg, profit decreased due to fewer housing units being handed over to consumers, with lower margins. Profit in St. Petersburg was charged with impairment losses on properties held for future development of SEK 18 M.
Organisational changes resulting from becoming an in dependent company generated non-recurring costs of SEK 22 M (57) in the quarter.
Net financial items was SEK -68 M (-76). The improvement was due to reduced average net debt. Profit after financial items for the fourth quarter 2016 was SEK 918 M (939).
Tax on profit for the period was SEK -201 M (-216), corresponding to a tax rate of 22 per cent (23).
Profit for the period after tax was SEK 717 M (723).
Operational performance
Net sales
Net sales amounted to SEK 13,492 M (13,070). The increase was sourced from more housing units for consumers with higher average prices, while revenues from investors and land sales were lower than the previous year. 4,371 (3,968) housing units for consumers, and 407 (1,768) housing units for investors, were recognised for profit in the year. The average price per housing unit for consumers was SEK 2.7 M (2.4). In the previous year, the sale of a German property portfolio of 321 housing units was recognised for profit, with revenues
of SEK 480 M. Exchange rate fluctuations had a negative impact of SEK 16 M on consolidated net sales in year-on-year terms.
In Sweden, the number of housing units handed over to consumers increased, and with the average price increasing. Revenues from investors and land sales decreased in Sweden. Net sales in Germany were up on the previous year as more housing units for consumers were recognised for profit, while revenues from investor deals decreased.
Net sales in Finland was reduced because no projects for investors were recognised for profit in 2016. Revenues from consumers increased.
Net sales in Denmark–Norway increased as a result of more housing units being handed over to consumers. In St. Petersburg, net sales increased as a result of more housing units for consumers, and one project for investors, being recognised for profit.
Operating profit for the period was SEK 1,562 M (1,377). Profit from projects for consumers improved, mainly in Sweden, Germany and Finland, where more housing units were recognised for profit. Profit in Denmark–Norway was charged with impairment losses on projects in the previous year. Profit from projects for investors decreased as fewer projects were recognised for profit in 2016. In the previous year, there was a SEK 51 M positive impact on operating profit from the sale of a German property portfolio.
Profit from land sales amounted to SEK 188 M (220), including a SEK -91 M loss on land sales in Latvia. Exchange rate fluctuations exerted a SEK 7 M negative impact on profit compared to the corresponding period of the previous year. In Sweden, net sales and margins on projects for consumers increased. The profit from land sales amounted to SEK 257 M (253).
In Germany, profit improved as more projects for consumers were recognised for profit, with improved margins. The profit on projects for investors decreased. Profit in Finland reduced due to no housing units for investors being recognised for profit. The profit on housing units for consumers improved, and profit from land sales was SEK 4 M (2).
In Denmark–Norway, profit improved due to more projects for consumers being recognised for profit, with higher margins. In the previous year, profit was charged with impairment losses totalling SEK -60 M on a project in Stavanger, Norway. The profit from land sales amounted to SEK 18 M (-4).
In St. Petersburg, profit improved as a result of more housing units being handed over to consumers and one project for investors being recognised for profit. Profit was charged with impairment losses of SEK 18 M on properties held for future development.
Organisational changes relating to becoming an independent company generated non-recurring costs of SEK 85 M (57) in the period.
Net financial items, tax and profit for the period Net financial items were SEK -279 M (-345). The improvement was due to lower net debt. Profit after financial items for the period was SEK 1,283 M (1,033).
Tax on profit for the period was SEK -278 M (-235), corresponding to a tax rate of 22 per cent (23).
Profit for the period after tax was SEK 1,004 M (768).
| SEK M | 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|---|---|---|---|---|
| Net sales per segment | ||||
| Sweden | 1,768 | 2,296 | 5,040 | 4,639 |
| Germany | 2,231 | 2,074 | 3,907 | 3,471 |
| Finland | 1,223 | 731 | 1,516 | 1,791 |
| Denmark–Norway | 1,019 | 1,050 | 1,931 | 1,760 |
| St. Petersburg | 298 | 620 | 915 | 773 |
| Other and eliminations | 44 | 542 | 182 | 636 |
| Total | 6,584 | 7,314 | 13,492 | 13,070 |
| 2016 | 2015 | 2016 | 2015 | |
|---|---|---|---|---|
| SEK M | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Operating profit per segment | ||||
| Sweden | 383 | 393 | 920 | 706 |
| Germany | 342 | 323 | 477 | 422 |
| Finland | 163 | 82 | 92 | 187 |
| Denmark–Norway | 144 | 103 | 194 | –3 |
| St. Petersburg | 34 | 166 | 178 | 197 |
| Other and eliminations | –80 | –51 | –298 | –132 |
| Total | 985 | 1,015 | 1,562 | 1,377 |
Total assets were SEK 16,770 M (15,506), with the increase primarily due to a higher volume of ongoing housing projects.
Net debt amounted to SEK 3,699 M (4,216), of which net debt in Swedish tenant-owner associations and Finnish housing companies amounted to SEK 3,624 M (3,177). Net debt was lower due to strong cash flow in the fourth quarter. As of 30 September 2016, net debt was SEK 5,179 M .
Return on capital employed was 14.6 per cent (12.5). The improvement is due to higher operating profit and lower average capital employed. Capital employed amounted to SEK 10,134 M (9,811) at the end of the period. Capital employed increased due to higher volumes of ongoing housing projects and properties held for future development. As of 30 September 2016, capital employed was SEK 10,894 M.
In Sweden, properties held for future development and ongoing production were at the same level as in the previous year, while the share of interest-free financing increased and capital tied-up was lower than the previous year. The combination of lower capital tied-up and improved profit increased return on capital employed.
In Germany, properties held for future development and on going housing projects increased as part of the current expansion process. Capital tied-up was restricted by increased customer advances and interest-free financing of land purchases. The return on capital employed decreased because of higher capital tied-up.
In Finland, ongoing housing projects increased, which was countered by lower other current assets and capital tied-up was unchanged. The return on capital employed decreased due to lower profit. A high number of projects were completed in Denmark–Norway in the year, and capital tied-up decreased. The return on capital employed increased due to improved profit and lower capital tied-up.
In St. Petersburg, the balances of housing projects decreased in local currency, but total assets increased in Swedish krona terms. Capital tied-up increased due to reduced interest-free financing of housing projects. The return on capital employed decreased due to higher capital tied-up and lower profit.
As of 31 December 2016, the equity/assets ratio was 33.7 per cent (30.5). Bonava's equity/assets ratio is affected by seasonal fluctuations as the company's assets increase in the first three quarters of the year and then decrease in the fourth quarter, when a large number of housing units are handed over to customers and recognised for profit.
The debt/equity ratio was 0.7 (0.9).
Cash flow before financing was SEK 1,428 M (2,131). Lower earnings and higher tax paid resulted in lower cash flow from operating activities. Cash flow from sales was unchanged, because more housing units for consumers were handed over, while the cash flow from sales of projects to investors reduced in Germany and Finland. The large number of housing units in production in the quarter also meant that investment in on going production increased, mainly in Germany and Finland. Other changes in working capital deteriorated somewhat due to lower changes of interest-free financing of housing projects. 3,4 0,4 7,8 3,5 0,6 8,5
Cash flow from investing activities reduced due to increased investments in new IT systems and equipment for new offices. 5,1 5,3
Allocation of assets
Properties held for future development
Cash flow before financing was SEK 536 M (1,437). Improved earnings generated higher cash flow from operating activities before changes in working capital. Investments in land and ongoing housing projects increased to a greater extent in the year than sales, generating a negative impact on cash flow from housing projects compared to the previous year, mainly in Germany and Finland. Other changes in working capital improved somewhat thanks to a higher inflow of accounts receivable. Investing activities generated lower cash flow than the previous year due to investments in new IT systems.
Bonava recognises revenues and earnings from housing sales when sold and completed units are delivered to customers. Bonava's operations are affected by seasonal variations due to the company's cyclical production year, the cold weather and a high share of annual production being completed and delivered to customers in the fourth quarter. Accordingly, earnings are usually stronger in the fourth quarter than in other quarters, as illustrated on page 9 in the graph 'Estimated completions per quarter'.
Housing sales, housing starts and building rights In the fourth quarter, 1,764 (1,354) housing units were sold to consumers and 953 (945) housing units were sold to investors. Sales were high in Sweden and Germany and the quarter, where the number of unit starts was also high. Quarterly sales increased in St. Petersburg.
In the period 1,729 (1,904) housing units were started for consumers, and 953 (945) for investors.
Housing units in ongoing production as of 31 December 2016
At the end of the period there were 6,158 (6,432) housing units for consumers and 2,955 (2,346) housing units for investors in production. The total number of housing units in production was higher than in the previous year. As of 31 December 2016, the sales rate was 63 per cent (60) for housing units for consumers and 100 per cent (94) for housing units for
investors. At the same date, the completion rates were 49 per cent (46) and 40 per cent (69) respectively.
Housing sales and housing starts Bonava sold a total of 4,311 (4,542) housing units to consumers and 1,922 (1,773) housing units to investors in the period. The number of housing starts was 4,041 (4,452) for consumers and 1,791 (1,904) for investors.
As more housing units are started due to increased sales, the number of completions per quarter is expected to increase in 2017. In Germany, production lead times are fairly short and the sales rate in ongoing production high. The sales rate in ongoing production is also high in Sweden.
| 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|
|---|---|---|---|---|
| Housing units in ongoing production for consumers, at period end | 6,158 | 6,432 | 6,158 | 6,432 |
| Housing units in ongoing production for investors, at period end | 2,955 | 2,346 | 2,955 | 2,346 |
| Total number of housing units in ongoing production | 9,113 | 8,778 | 9,113 | 8,778 |
| Sales rate for housing units in ongoing production, % | 75 | 69 | 75 | 69 |
| Reservation rate for housing units in ongoing production, % | 4 | 5 | 4 | 5 |
| Sold and reserved housing units in ongoing production, % | 79 | 74 | 79 | 74 |
| Housing units sold to consumers | 1,764 | 1,354 | 4,311 | 4,542 |
| Housing units sold to investors | 953 | 945 | 1,922 | 1,773 |
| Total housing units sold | 2,717 | 2,299 | 6,233 | 6,315 |
| Housing starts for consumers | 1,729 | 1,904 | 4,041 | 4,452 |
| Housing starts for investors | 953 | 945 | 1,791 | 1,904 |
| Total housing starts | 2,682 | 2,849 | 5,832 | 6,356 |
Number of housing units in ongoing production
The figure illustrates the number of housing units in production per quarter and the share of housing units that were sold.
The figure illustrates estimated completions of housing units for consumers, and housing units for the investor market that have not yet been recognised for profit. The curve illustrates the sold proportion. Sold housing units are recognised for profit at the time of delivery.
There were 28,000 (29,100) building rights, of which 17,500 (18,100) are recognised in the Balance Sheet. The decrease relates to active portfolio management, where land on nonprioritised markets has been divested.
The number of unsold completed housing units at period end was 180 (156). All these housing units were for consumers.
Bonava's operations are exposed to several types of risk, both operational and financial. Operational risks impact the Group's daily operations. This type of risk may relate to investments in land, project development, seasonal exposure or assessment of the earnings capacity of projects.
Operational risks are managed as part of the internal corporate governance process established by Bonava. The business units assess and manage risk through operational systems as well as specific processes and procedures.
The Group's financial risks such as interest-rate, currency, refinancing, liquidity and credit risks are managed centrally in order to minimise and control Bonava's risk exposure.
Customer credit risk is managed by the individual business unit. A centralised insurance function is responsible for Groupwide non-life and liability insurance, primarily property and contractor's insurance. This function also conducts preventive risk management alongside the business units, implying cost-efficient and coordinated insurable risks. The risk that Bonava may fail to comply with the company's Code of Conduct is managed by the CSR Compliance function.
Also refer to the prospectus, Admission to trading on Nasdaq Stockholm for shares of series A and series B in Bonava AB (publ), in the section Risk factors, at www.bonava.com.
The Group's average number of employees was 1,482 (1,331) in the period.
Bonava has two classes of share, class A and class B. The closing price on 30 December 2016 was SEK 139.60 per class A share and SEK 141.20 per class B share, corresponding to market capitalisation of SEK 15.2 Bn.
Bonava's share capital was SEK 433,743,288 on the reporting date, divided between 108,435,822 shares and 237,809,364 votes. As of 31 December 2016, Bonava had 14,374,838 class A shares and 94,060,984 class B shares. Each class A share carries 10 votes and each class B share one vote.
Bonava had 41,189 shareholders at the end of the quarter. Bonava's largest shareholder was Nordstjernan AB. As of 30 December, the ten largest shareholders controlled 53.9 per cent of the capital and 65.9 per cent of the votes.
| Number of class A shares |
Number of class B shares |
Holding, % |
Voting rights, % |
|
|---|---|---|---|---|
| Nordstjernan AB | 10,700,000 | 10,023,759 | 19.1 | 49.2 |
| AMF – Insurance and Funds |
0 | 7,907,171 | 7.3 | 3.3 |
| Swedbank Robur funds |
0 | 5,678,475 | 5.2 | 2.4 |
| Lannebo funds | 200,000 | 5,331,397 | 5.1 | 3.1 |
| SEB Investment Management |
0 | 5,505,842 | 5.1 | 2.3 |
| Fourth AP Fund | 3,343 | 3,772,055 | 3.5 | 1.6 |
| Carnegie funds | 0 | 2,750,000 | 2.5 | 1.2 |
| Handelsbanken funds |
0 | 2,647,353 | 2.4 | 1.1 |
| Norges Bank | 3,239 | 2,243,769 | 2.1 | 1.0 |
| Länsförsäkringar fondförvaltning AB |
0 | 1,770,485 | 1.6 | 0.7 |
| Total, ten largest shareholders |
10,906,582 | 47,630,306 | 53.9 | 65.9 |
| Other | 3,468,256 | 46,430,678 | 46.1 | 34.1 |
| Total | 14,374,838 | 94,060,984 | 100.0 | 100.0 |
Effective 9 June 2016, NCC distributed all the shares in Bonava AB to shareholders. NCC AB remains a minority owner of Bonava Deutschland GmbH, but Bonava holds the option to acquire NCC AB's participations in 2021. According to a profit sharing agreement, NCC AB will waive dividend and receive annual compensation of EUR 1.3 M until the agreement is cancelled, which may occur five years from entering the agreement at the earliest. The agreed profit sharing, representing a debt of SEK 57 M to NCC AB, has been reported at an amount corresponding to the fair value of five years' payments.
Bonava repurchased 354,400 class B shares for SEK 45.0 M in the period to fulfil the company's obligations relating to its long-term incentive program (LTIP 2016), which was introduced in the year.
No significant events over and above regular operating activities occurred after the end of the reporting period.
The Board of Directors proposes a dividend of SEK 3.80 per share, divided into two payments. The first payment of SEK 1.90 is proposed for disbursement on 11 April 2017 and the second payment of SEK 1.90 per share is proposed for disbursement on 11 October 2017.
Bonava's AGM will be held at Hotel Rival, Mariatorget 3, Stockholm, Sweden on 4 April 2017. The meeting will open at 3 p.m. and the notice convening the Meeting will be published on Bonava's website www.bonava.com on 1 March and published in the Swedish Official Gazette on 6 March. The notification will be announced in Swedish daily newspapers Dagens Nyheter and Svenska Dagbladet on the same date. The Board of Directors' and Nomination Committee's proposals for resolution of the Meeting will also be uploaded to the company's website, where it will also be possible to notify participation at the Meeting.
Ann-Sofi Danielsson, CFO and Head of Investor Relations [email protected] Tel: +46 (0)8 409 544 00 Tel: +46 (0)706 740 720
This Report constitutes information that Bonava AB (publ) is obliged to publish pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact stated above, on 25 January 2017 at 8:00 a.m. CET.
Joachim Hallengren, CEO and Ann-Sofi Danielsson, CFO, will present the Interim Report and the presentation will be followed by a Q&A session.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden.
Time: 25 January 2017, 10.00–11.00 a.m. Registration and coffee served from 9.30 a.m.
Please register by email at [email protected] or on tel. +46 (0) 761 090 580.
To participate in the teleconference and ask questions, please call one of the following numbers: +49 211 971 90 086 (DE) +44 203 194 05 50 (UK) +46 8 519 993 55 (SE) +1 855 269 26 05 (US)
The presentation will also be broadcast live at bonava.com/en/investor-relations, where presentation material will be available for downloading and the teleconference will be available for replay.
Bonava focuses on cities and regions with favourable demographics and macroeconomic factors where the company can develop and retain a strong market position. In Sweden, Bonava focuses on consumers in five cities: Stockholm, Gothenburg, Linköping, Uppsala and Umeå. Bonava's investor-oriented business focuses on some 15 cities in Sweden. In Sweden, Bonava's offering focuses on consumers and investors through multi-family and single-family housing.
Project name: Ekkällan Arena 2
Project start: Q4 2016
Location: Linköping, Sweden
Housing category: Multi-family housing
Number of housing units: 42
Ekkällan Arena is built around an attractive courtyard designed for exercise and relaxation. Ekhällan Arena has a shared roof terrace with glazed veranda, apartment for overnight stays, sundeck and cycle repair workshop.
| 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 1,768 | 2,296 | 5,040 | 4,639 |
| Operating profit, SEK M1) | 383 | 393 | 920 | 706 |
| Operating margin, % | 21.6 | 17.1 | 18.3 | 15.2 |
| Capital employed at period end, SEK M | 4,350 | 4,978 | 4,350 | 4,978 |
| Return on capital employed, % | 19.3 | 13.9 | 19.3 | 13.9 |
| Building rights | ||||
| Building rights, at period end, number | 7,200 | 7,600 | 7,200 | 7,600 |
| of which, off-balance-sheet building rights, number | 3,300 | 2,500 | 3,300 | 2,500 |
| Housing development for consumers | ||||
| Number of sold housing units | 468 | 390 | 1,123 | 1,350 |
| Number of started housing units | 563 | 495 | 1,108 | 1,343 |
| Number of profit-recognised housing units | 259 | 446 | 1,013 | 956 |
| Number of housing units in production, at period end | 2,304 | 2,206 | 2,304 | 2,206 |
| Sales rate for housing units in production, % | 75 | 73 | 75 | 73 |
| Housing development for investors | ||||
| Number of sold housing units | 227 | 579 | 27 | |
| Number of started housing units | 227 | 448 | 158 | |
| Number of profit-recognised housing units | 132 | 156 | ||
| Number of housing units in production at period end | 606 | 290 | 606 | 290 |
| Sales rate for housing units in production, % | 100 | 55 | 100 | 55 |
1) Profit from sales of land was SEK 196 M (142) in the quarter, and SEK 257 M (253) for the full year 2016.
Bonava operates in the following regions: Berlin, Hamburg, the Baltic coast, Saxony, Rhine-Ruhr, Cologne/ Bonn, Rhine-Main and Rhine-Neckar/ Stuttgart. In Germany, Bonava's offering focuses on consumers and investors through single-family houses and multi-family housing. Bonava has developed a construction system in Germany that ensures an efficient construction process.
Project name: Auf der Sinstorfer Höhe Project start: Q4 2016
Location: Hamburg, Germany
Housing category: Multi-family housing
Number of housing units: 45 apartments
Cosy family homes and beautiful gardens in a quiet neighbourhood surrounded by green areas, thus adjacent to a business park – in Hamburg's south a city-like infrastructure meets a village's tranquility and lets forget being in Germany's second largest city. One is in the vicinity of deeper nature and in proximity of Hamburg's city center within only 20 minutes.
| 2016 | 2015 | 2016 | 2015 |
|---|---|---|---|
| Jan–Dec | |||
| 2,231 | 2,074 | 3,907 | 3,471 |
| 342 | 323 | 477 | 422 |
| 15.3 | 15.6 | 12.2 | 12.1 |
| 2,163 | 1,361 | 2,163 | 1,361 |
| 25.4 | 30.7 | 25.4 | 30.7 |
| 6,400 | 5,700 | 6,400 | 5,700 |
| 2,700 | 3,600 | 2,700 | 3,600 |
| 530 | 430 | 1,288 | 1,154 |
| 775 | 609 | 1,455 | 1,284 |
| 544 | 452 | 1,057 | 896 |
| 1,785 | 1,386 | 1,785 | 1,386 |
| 59 | 60 | 59 | 60 |
| 479 | 638 | 645 | 860 |
| 479 | 638 | 645 | 860 |
| 201 | 680 | 201 | 726 |
| 1,184 | 740 | 1,184 | 740 |
| 100 | 100 | 100 | 100 |
| Oct–Dec | Oct–Dec | Jan–Dec |
1) The period Jan–Dec 2015 includes 321 housing units sold in Sonnengarten in Berlin. Net sales and profit are included under Other and eliminations.
In Finland, Bonava operates in Helsinki, Espoo, Vantaa, Turku, Tampere and Oulu. On this market, Bonava's offering focuses on consumers and investors, mainly in the form of multi-family housing.
Project name: Ukonkivi Project start: Q4 2016 Location: Oulu, Finland Housing category: Multi-family housing
Number of housing units: 50
Affordable apartments for single occupants, couples and families. Walking distance to schools, supermarkets and green spaces.
| 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 1,223 | 731 | 1,516 | 1,791 |
| Operating profit, SEK M1) | 163 | 82 | 92 | 187 |
| Operating margin, % | 13.3 | 11.2 | 6.1 | 10.5 |
| Capital employed at period end, SEK M | 1,092 | 1,114 | 1,092 | 1,114 |
| Return on capital employed, % | 7.1 | 12.5 | 7.1 | 12.5 |
| Building rights | ||||
| Building rights, at period end, number | 7,300 | 8,400 | 7,300 | 8,400 |
| of which, off-balance-sheet building rights, number | 4,200 | 4,800 | 4,200 | 4,800 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 220 | 233 | 637 | 672 |
| Number of started housing units during the period | 168 | 410 | 522 | 784 |
| Number of profit-recognised housing units during the period | 538 | 236 | 658 | 639 |
| Number of housing units in production, at period end | 567 | 698 | 567 | 698 |
| Sales rate for housing units in production, % | 50 | 42 | 50 | 42 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 247 | 307 | 624 | 886 |
| Number of started housing units during the period | 247 | 307 | 624 | 886 |
| Number of profit-recognised housing units during the period | 307 | 886 | ||
| Number of housing units in production at period end | 1,091 | 1,242 | 1,091 | 1,242 |
| Sales rate for housing units in production, % | 100 | 100 | 100 | 100 |
1) Profit from sales of land amounted to SEK 1 M (0) in the quarter and SEK 4 M (2) for the full year 2016.
Bonava operates in Copenhagen, Denmark and Bergen, Norway. In Denmark and Norway, Bonava's offering mainly focuses on consumers and investors through multi-family housing and single-family houses.
Project name: Drabæk Huse
Project start: Q4 2016
Location: Blovstrød, Denmark Housing category:
semi-detached houses Number of housing units: 34
Close to excellent schools, sports facilities and large green spaces. Drabæk Huse is the first environmentally approved semi-detached housing project in North Zealand, with a focus on social sustainability.
| 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 1,019 | 1,050 | 1,931 | 1,760 |
| Operating profit, SEK M1) | 144 | 103 | 194 | -3 |
| Operating margin, % | 14.1 | 9.8 | 10.0 | -0.2 |
| Capital employed at period end, SEK M | 736 | 1,076 | 736 | 1,076 |
| Return on capital employed, % | 16.0 | -0.2 | 16.0 | -0.2 |
| Building rights | ||||
| Building rights, at period end, number | 900 | 1,300 | 900 | 1,300 |
| of which, off-balance-sheet building rights, number | 300 | 100 | 300 | 100 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 77 | 30 | 299 | 300 |
| Number of started housing units during the period | 107 | 67 | 249 | 241 |
| Number of profit-recognised housing units during the period | 218 | 126 | 396 | 281 |
| Number of housing units in production, at period end | 316 | 450 | 316 | 450 |
| Sales rate for housing units in production, % | 58 | 62 | 58 | 62 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 74 | |||
| Number of started housing units during the period | 74 | |||
| Number of profit-recognised housing units during the period | ||||
| Number of housing units in production at period end | 74 | 74 | ||
| Sales rate for housing units in production, % | 100 | 100 |
1) Profit from sales of land amounted to SEK 2 M (2) in the quarter and SEK 18 M (-4) for the full year 2016.
In Russia, Bonava is only active in St. Petersburg. In St. Petersburg, Bonava's offering consists exclusively of multi-family housing and focuses on consumers and investors.
Development period: Q3 2011–Q2 2017
Location: St. Petersburg
Housing category: Multi-family housing
Number of housing units: 2,753 housing units
Housing estate close to St. Petersburg with separate car park, playground, preschools and closeness to public transport. Spacious layouts in this popular estate for the younger generation and first-time buyers. A total of 2,316 apartments are complete, and 437 are in production. Only 24 apartments remain for sale.
| Oct–Dec Key financial figures Net sales, SEK M 298 Operating profit, SEK M 34 Operating margin, % 11.3 Capital employed at period end, SEK M 1,277 Return on capital employed, % 16.5 Building rights Building rights, at period end, number 4,400 of which, off-balance-sheet building rights, number Housing development for consumers |
Oct–Dec 620 166 26.8 |
Jan–Dec 915 178 |
Jan–Dec 773 |
|---|---|---|---|
| 197 | |||
| 19.4 | 25.5 | ||
| 802 | 1,277 | 802 | |
| 24.4 | 16.5 | 24.4 | |
| 4,700 | 4,400 | 4,700 | |
| Number of sold housing units during the period 357 |
220 | 653 | 865 |
| Number of started housing units during the period | 216 | 363 | 533 |
| Number of profit-recognised housing units during the period 479 |
864 | 1,026 | 1,039 |
| Number of housing units in production, at period end 800 |
1,447 | 800 | 1,447 |
| Sales rate for housing units in production, % 61 |
55 | 61 | 55 |
| Housing development for investors | |||
| Number of sold housing units during the period | |||
| Number of started housing units during the period | |||
| Number of profit-recognised housing units during the period | 74 | ||
| Number of housing units in production at period end | 74 | 74 | |
| Sales rate for housing units in production, % | 100 | 100 |
Note: Because of low net sales, Estonia and Latvia have been included in the Other and eliminations reporting segment, see Note 4 where sales and operating profit are reported.
| SEK M | Note 1 |
2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|---|---|---|---|---|---|
| Net sales | 4 | 6,584 | 7,314 | 13,492 | 13,070 |
| Production costs | -5,391 | -6,046 | -11,235 | -11,016 | |
| Gross profit | 1,193 | 1,268 | 2,257 | 2,054 | |
| Selling and administrative expenses | -185 | -161 | -610 | -583 | |
| Non-recurring costs1) | -22 | -57 | -85 | -57 | |
| Other operating expenses | -35 | -36 | |||
| Operating profit | 4 | 985 | 1,015 | 1,562 | 1,377 |
| Financial income | 6 | 3 | 13 | 11 | |
| Financial expenses | -73 | -79 | -292 | -356 | |
| Net financial items | -68 | -76 | -279 | -345 | |
| Profit after financial items | 4 | 918 | 939 | 1,283 | 1,033 |
| Tax on profit for the period | -201 | -216 | -278 | -235 | |
| Net profit for the period | 717 | 723 | 1,004 | 798 | |
| Attributable to: | |||||
| Bonava AB's shareholders | 715 | 692 | 1,003 | 768 | |
| Non-controlling interests | 2 | 32 | 2 | 31 | |
| Net profit for the period | 717 | 723 | 1,004 | 798 | |
| Per share data before and after dilution | |||||
| Earnings per share, SEK | 6.61 | 6.67 | 9.26 | 7.36 | |
| Cash flow from operating activities, SEK | 13.75 | 19.37 | 6.54 | 13.37 | |
| Shareholders' equity, SEK | 52.25 | 43.08 | 52.25 | 43.08 | |
| Average number of shares, millions | 108.3 | 108.4 | 108.4 | 108.4 |
1) Activities relating to Bonava becoming an independent company.
| Note | 2016 | 2015 | 2016 | 2015 | |
|---|---|---|---|---|---|
| SEK M | 1 | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Profit for the period | 717 | 723 | 1,004 | 798 | |
| Items that may be reclassified to profit or loss | |||||
| Translation differences during the period in translation of foreign operations |
2 | -39 | 98 | -59 | |
| Hedging of exchange-rate risk in foreign operations | 2 | 31 | -73 | 41 | |
| Cash-flow hedges | 24 | 33 | |||
| Tax related to items that may be reclassified to profit or loss | -1 | -12 | 16 | -16 | |
| 3 | 4 | 41 | -2 | ||
| Items that will not be reclassified to profit or loss | |||||
| Revaluation of defined-benefit pension plans | -8 | ||||
| Tax related to items that will not be reclassified to profit or loss |
2 | ||||
| 0 | 0 | 0 | -6 | ||
| Other comprehensive income for the period | 3 | 4 | 41 | -8 | |
| Comprehensive income for the period | 720 | 727 | 1,045 | 790 | |
| Attributable to: | |||||
| Bonava AB's shareholders | 717 | 695 | 1,042 | 759 | |
| Non-controlling interests | 4 | 32 | 4 | 31 | |
| Total comprehensive income for the period | 720 | 727 | 1,045 | 790 |
| SEK M | Note 1 |
2016 31 Dec |
2015 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | 933 | 773 | |
| Current assets | |||
| Properties held for future development | 5,035 | 4,737 | |
| Ongoing housing projects | 7,898 | 7,043 | |
| Completed housing units | 733 | 599 | |
| Current receivables | 1,552 | 1,769 | |
| Cash and cash equivalents | 2 | 619 | 585 |
| Total current assets | 15,836 | 14,732 | |
| TOTAL ASSETS | 16,770 | 15,506 | |
| SHAREHOLDERS' EQUITY | |||
| Shareholders' equity attributable to parent company shareholders | 5,648 | 4,672 | |
| Non-controlling interests | 5 | 60 | |
| Total shareholders' equity | 5,652 | 4,732 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 2 | 2,245 | 2,033 |
| Other non-current liabilities | 271 | 487 | |
| Non-current provisions | 803 | 357 | |
| Total non-current liabilities | 3,319 | 2,877 | |
| Current liabilities | |||
| Current interest-bearing liabilities | 2 | 2,236 | 3,046 |
| Other current liabilities | 5,562 | 4,850 | |
| Total current liabilities | 7,799 | 7,896 | |
| Total liabilities | 11,117 | 10,773 | |
| TOTAL EQUITY AND LIABILITIES | 16,770 | 15,506 |
| SEK M | Shareholders' equity attributable to parent company shareholders |
Non-controlling interests | Total shareholders' equity |
|---|---|---|---|
| Opening shareholders' equity, 1 January 2015 | 294 | 44 | 338 |
| Comprehensive income for the period | 759 | 31 | 790 |
| Transactions with shareholders | -1,393 | -3 | -1,396 |
| Transactions with shareholders regarding taxation | 112 | 112 | |
| Shareholders' contribution received | 5,003 | 5,003 | |
| Performance-based incentive program2) | 1 | 1 | |
| Dividend | -104 | -12 | -116 |
| Closing shareholders' equity, 31 December 2015 | 4,672 | 60 | 4,732 |
| Opening shareholders' equity, 1 January 2016 | 4,672 | 60 | 4,732 |
| Comprehensive income for the period | 1,042 | 4 | 1,045 |
| Transactions with non-controlling interests1) | 5 | -59 | -55 |
| Dividend | -15 | -15 | |
| Transactions with shareholders | -12 | -12 | |
| Purchase of treasury shares | -45 | -45 | |
| Performance-based incentive program2) | 2 | 2 | |
| Closing shareholders' equity, 31 December 2016 | 5,648 | 5 | 5,652 |
1) According to a profit-sharing agreement between Bonava Deutschland GmbH and NCC AB, NCC AB will waive dividends and receive fixed compensation of EUR 1.3 M annually instead. The reported amount pertains to the fair value of five years' payment.
2) NCC's incentive program 2015 and NCC's and Bonava's incentive program 2016.
| SEK M | 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|---|---|---|---|---|
| OPERATING ACTIVITIES | ||||
| Profit after financial items | 918 | 939 | 1,283 | 1,033 |
| Adjustments for items not included in cash flow | 53 | 76 | 2 | 52 |
| Tax paid | -78 | -39 | -197 | -125 |
| Cash flow from operating activities before changes in working capital |
892 | 976 | 1,087 | 959 |
| Cash flow from changes in working capital | ||||
| Divestment of housing projects | 5,052 | 5,079 | 10,807 | 10,075 |
| Investments in housing projects | -3,447 | -3,195 | -11,538 | -9,842 |
| Other changes in working capital | -1,008 | -759 | 352 | 258 |
| Cash flow from changes in working capital | 597 | 1,124 | -379 | 491 |
| Cash flow from operating activities | 1,489 | 2,100 | 708 | 1,450 |
| INVESTING ACTIVITIES | ||||
| Cash flow from investing activities | -61 | 31 | -173 | -13 |
| CASH FLOW BEFORE FINANCING | 1,428 | 2,131 | 536 | 1,437 |
| FINANCING ACTIVITIES | ||||
| Capital contribution from NCC | 5,051 | |||
| Repayment of loans to NCC | -6,012 | |||
| Borrowing | 2,059 | |||
| Dividend paid | -15 | -104 | ||
| Purchase of treasury shares | -45 | -45 | ||
| Change in interest-bearing financial liabilities | -1,325 | -2,009 | -1,724 | -1,196 |
| Change in long-term interest-bearing receivables | 18 | -36 | 52 | -29 |
| Change in current interest-bearing receivables | -78 | -61 | 108 | 29 |
| Cash flow from financing activities | -1,429 | -2,106 | -525 | -1,301 |
| CASH FLOW DURING THE PERIOD | -1 | 26 | 10 | 136 |
| Cash and cash equivalents at the beginning of the period | 624 | 570 | 585 | 463 |
| Exchange-rate difference in cash and cash equivalents | -3 | -11 | 23 | -14 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 619 | 585 | 619 | 585 |
Until its IPO, Bonava had short-term financing from NCC Treasury AB, so debt amortisation has been recognised gross in the Cash Flow Statement.
This Year-end 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.
The formation of the Bonava Group was completed on 31 March 2016, when the Finnish operations were acquired from NCC AB. Accordingly, consolidated financial statements have been prepared as of this date.
Until 31 March 2016, Bonava was a segment of the NCC AB group. No consolidated financial statements have been prepared for earlier periods, since Bonava was not a group at this time. Because the Group has no financial history, combined financial statements have been prepared for the financial years 2013–2015 and for the comparative figures in this Interim Report. The basis of preparation of the combined financial statements is presented in Note 1 'Significant accounting policies' in the combined financial statements, which is available in the Prospectus "Admission to trading on Nasdaq Stockholm for shares of series A and shares of series B in Bonava AB (publ)" published on www.bonava.com.
The formation of the Bonava Group comprised transactions with joint controlling influence. Such transactions are not regulated by IFRS and the Group is required to establish principles governing this. The Group has chosen to apply the policies described under the basis for preparation of the combined financial statements when preparing the consolidated financial statements. In short, this means that the assets and liabilities of the units have been aggregated and recognized based on the carrying amounts they represent in NCC AB's consolidated financial statements and that the transactions have been recognised as if they had occurred at the beginning of the earliest period presented (meaning that comparative figures have been included).
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 the combined financial statements. These policies are also available at www.bonava.com.
| SEK M | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Non-current interest-bearing receivables | 79 | 131 |
| Current interest-bearing receivables | 84 | 146 |
| Cash and cash equivalents | 619 | 585 |
| Total | 782 | 863 |
| Non-current interest-bearing liabilities | 2,245 | 2,033 |
| Current interest-bearing liabilities | 2,236 | 3,046 |
| Total | 4,481 | 5,079 |
| Net debt | 3,699 | 4,216 |
| of which, attributable to Swedish tenant-owner associations and Finnish housing companies |
||
| Interest-bearing liabilities | 3,677 | 3,268 |
| Cash and cash equivalents | 53 | 90 |
| Net debt | 3,624 | 3,177 |
| Net debt, excl. tenant-owners associations and housing companies |
75 | 1,039 |
| 2016 | 2015 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Assets pledged | ||
| For own liabilities: | ||
| Property mortgages | 1,699 | 859 |
| Restricted bank funds | 22 | 27 |
| Total pledged assets | 1,721 | 886 |
| Contingent and guarantee liabilities | ||
| Own contingent liabilities: | ||
| Deposits and concession fees1) | 600 | 718 |
| Other guarantees | 118 | |
| Held jointly with other companies | ||
| Liabilities in partnerships | ||
| and limited partnerships | 23 | 24 |
| Total contingent and | ||
| guarantee liabilities | 741 | 742 |
1) Deposit guarantees constitute collateral for investments and concession fees paid to tenant-owner associations formed by Bonava Sverige AB. The guarantee is to be restored one year after the final acquisition cost of the tenant-owner association's building has been established.
| Oct–Dec 2016, MSEK | Sweden | Germany | Finland | Denmark– Norway |
St. Petersburg | Other and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 1,768 | 2,231 | 1,223 | 1,019 | 298 | 44 | 6,584 |
| Operating profit | 383 | 342 | 163 | 144 | 34 | -80 | 985 |
| Net financial items | -68 | ||||||
| Profit after financial items | 918 | ||||||
| Capital employed at period end | 4,350 | 2,163 | 1,092 | 736 | 1,277 | 515 | 10,134 |
| Denmark– | Other and | ||||||
|---|---|---|---|---|---|---|---|
| Oct–Dec 2015, MSEK | Sweden | Germany | Finland | Norway | St. Petersburg | eliminations | Total |
| Net sales | 2,296 | 2,074 | 731 | 1,050 | 620 | 542 | 7,314 |
| Operating profit | 393 | 323 | 82 | 103 | 166 | -51 | 1,015 |
| Net financial items | -76 | ||||||
| Profit after financial items | 939 | ||||||
| Capital employed at period end | 4,978 | 1,361 | 1,114 | 1,076 | 802 | 481 | 9,811 |
| Jan–Dec 2016, MSEK | Sweden | Germany | Finland | Denmark– Norway |
St. Petersburg | Other and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 5,040 | 3,907 | 1,516 | 1,931 | 915 | 182 | 13,492 |
| Operating profit | 920 | 477 | 92 | 194 | 178 | -298 | 1,562 |
| Net financial items | -279 | ||||||
| Profit after financial items | 1,283 | ||||||
| Capital employed at period end | 4,350 | 2,163 | 1,092 | 736 | 1,277 | 515 | 10,134 |
| Jan–Dec 2015, MSEK | Sweden | Germany | Finland | Denmark– Norway |
St. Petersburg | Other and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 4,639 | 3,471 | 1,791 | 1,760 | 773 | 636 | 13,070 |
| Operating profit | 706 | 422 | 187 | -3 | 197 | -132 | 1,377 |
| Net financial items | -345 | ||||||
| Profit after financial items | 1,033 | ||||||
| Capital employed at period end | 4,978 | 1,361 | 1,114 | 1,076 | 802 | 481 | 9,811 |
| Net sales | Operating profit | |||||||
|---|---|---|---|---|---|---|---|---|
| Other and eliminations, SEK M |
2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
2016 Oct–Dec |
2015 Oct–Dec |
2016 Oct–Dec |
2015 Jan–Dec |
| Bonava's Head Office1) | 24 | -5 | 69 | 14 | -82 | -33 | -227 | -111 |
| Sales, German property portfolio | 480 | 480 | 51 | 51 | ||||
| Sales, Latvian property portfolio | 4 | -91 | ||||||
| Operations in Estonia and Latvia | 44 | 55 | 176 | 129 | 3 | -59 | 20 | -62 |
| Adjustments and eliminations | -23 | 13 | -67 | 13 | -10 | -10 | ||
| TOTAL | 44 | 542 | 182 | 636 | -80 | -51 | -298 | -132 |
1) Activities relating to Bonava becoming an independent company generated costs of SEK 85 M (57) in 2016 of which SEK 55 M (12) relates to head office. For the quarter these costs amounted to SEK 22 M (57) of which SEK 14 M (12) relates to head office.
The following table presents disclosures about the measurement of fair value for financial instruments that are continuously measured at fair value in Bonava's Balance Sheet. The fair value measurement divides assets into three levels. No transfers between levels were made in the period.
Bonava has no financial instruments in levels 1 and 3.
Derivatives in level 2 comprise currency forward contracts used for hedging purposes. The measurement of fair value for currency forward contracts is based on published forward rates in an active market.
| SEK M | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Derivative instruments used for hedging purposes |
17 | 15 |
| Derivative instruments not used for hedging purposes |
38 | |
| Total assets | 55 | 15 |
| Derivative instruments not used for hedging purposes |
102 | |
| Total liabilities | 102 | 0 |
The fair value of non-current and current interest-bearing liabilities has been judged not to differ materially from carrying amount. For financial instruments recognised at amortised cost; accounts receivables, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities, fair value is considered equal to carrying amount.
Bonava judges that there is no material difference between the book value and fair value of instruments recognised at amortised cost.
In the period until 9 June 2016, Bonava constituted the NCC Housing operating segment of NCC AB.
During the first half of the year, Bonava was party to multiple transactions with NCC companies where the pricing followed the NCC Group's transfer pricing policy. After 9 June 2016, all transactions with NCC have been priced on a commercial basis.
Joint ventures and joint arrangements are categorised as related parties. The Nordstjernan Group and companies in the Axel Johnson Group are also categorized as related parties. Transactions with these parties were not material and have not been specified below.
| Transactions with NCC, SEK M |
2016 Jan–Dec |
2015 Jan–Dec |
|---|---|---|
| Sales | 19 | 1 |
| Purchases | 3,314 | 3,690 |
| Financial income | 1 | |
| Financial expenses | 87 | 269 |
| Current receivables | 1 | 187 |
| Non-current interest-bearing liabilities |
45 | 11 |
| Current interest-bearing liabilities | 12 | 1,676 |
| Accounts payable | 258 | 154 |
| Other current liabilities | 318 | |
| Contingent liabilities | 76 |
The parent company comprises the operations of Bonava AB. The company's net sales amounted to SEK 69 M (14). Profit/loss after financial items was SEK 24 M (-217).
| Note | 2016 | 2015 | |
|---|---|---|---|
| SEK M | 1 | Jan–Dec | Jan–Dec |
| Net sales | 69 | 14 | |
| Selling and administrative expenses | -295 | -39 | |
| Operating profit | -226 | -25 | |
| Profit/loss from participations in Group companies | 291 | -205 | |
| Financial income | 148 | 13 | |
| Financial expenses | -188 | ||
| Profit/loss after financial items | 24 | -217 | |
| Appropriations | -5 | 88 | |
| Profit/loss before tax | 19 | -129 | |
| Tax on profit/loss for the period | 27 | -17 | |
| Profit/loss for the period | 45 | -145 | |
| 2016 | 2015 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Assets | ||
| Fixed assets | 1,955 | 1,173 |
| Current assets | 4,259 | 5,306 |
| Total assets | 6,214 | 6,478 |
| Shareholders' equity and liabilities | ||
| Shareholders' equity | 5,210 | 4,858 |
| Provisions | 1 | 5 |
| Long-term liabilities | 609 | 37 |
| Current liabilities | 395 | 1,579 |
| Total equity and liabilities | 6,214 | 6,478 |
The company has prepared its Year-end Report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
As of 1 January 2016, the company applies RFR 2 Accounting for Legal Entities. The company previously applied the general advice on annual accounts and consolidated financial statements issued by the Swedish Accounting Standards Board (K3). The transition from K3 to RFR 2 took place at the beginning of 2015 and has not had any impact on the company's earnings and financial position in this report.
Apart from transactions with the NCC Group, no transactions with a material impact on the company's financial position and earnings have taken place between Bonava and related parties.
| SEK M | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Guarantees and contingent liabilities | 15,485 |
| Group | 2016 Oct–Dec |
2015 Oct–Dec |
2016 Jan–Dec |
2015 Jan–Dec |
|---|---|---|---|---|
| Building rights, at period end | 28,000 | 29,100 | 28,000 | 29,100 |
| Of which, off-balance-sheet building rights | 10,500 | 11,000 | 10,500 | 11,000 |
| Housing development for consumers | ||||
| Profit-recognised housing units during the period | 2,090 | 2,187 | 4,371 | 3,968 |
| Housing starts during the period | 1,729 | 1,904 | 4,041 | 4,452 |
| Housing units sold during the period | 1,764 | 1,354 | 4,311 | 4,542 |
| Housing units under construction, at period end | 6,158 | 6,432 | 6,158 | 6,432 |
| Sales rate for housing units under construction, % | 63 | 60 | 63 | 60 |
| Reservation rate for housing units under construction, % | 6 | 6 | 6 | 6 |
| Completion rate for housing units under construction, % | 49 | 46 | 49 | 46 |
| Completed housing units, not recognised in profit, at period end | 373 | 429 | 373 | 429 |
| Housing units for sale (ongoing and completed), at period end | 2,440 | 2,713 | 2,440 | 2,713 |
| Housing development for investors | ||||
| Profit-recognised housing units during the period | 201 | 987 | 407 | 1,768 |
| Housing starts during the period | 953 | 945 | 1,791 | 1,904 |
| Housing units sold during the period | 953 | 945 | 1,922 | 1,773 |
| Housing units under construction, at period end | 2,955 | 2,346 | 2,955 | 2,346 |
| Sales rate for housing units under construction, % | 100 | 94 | 100 | 94 |
| Completion rate for housing units under construction, % | 40 | 69 | 40 | 69 |
| Completed housing units, not recognised in profit, at period end | ||||
| Housing units for sale (ongoing and completed), at period end | 131 | 131 |
| SEK M unless otherwise stated | 2016 | 2015 31 dec |
|---|---|---|
| 31 dec | ||
| Return on capital employed, %1) | 14.6 | 12.5 |
| Interest coverage ratio, multiple1) | 5.4 | 3.9 |
| Equity/assets ratio, % | 33.7 | 30.5 |
| Interest bearing liabilities/total assets, % | 26.7 | 32.8 |
| Net debt | 3,699 | 4,216 |
| Net debt, excl. tenant-owner associations/housing companies2) | 75 | 1,039 |
| Debt/equity ratio, multiple | 0.7 | 0.9 |
| Capital employed at period-end | 10,134 | 9,811 |
| Average capital employed | 10,412 | 10,882 |
| Capital turnover rate, multiple1) | 1.3 | 1.2 |
| Share of risk-bearing capital, % | 33.8 | 30.5 |
| Dividend, SEK per share | 3.80 | 0.00 |
| Average interest rate at period-end, %2) | 3.75 | 3.06 |
| Average period of fixed interest, years2) | 0.3 | 0.2 |
| Average interest rate at period-end, %3) | 1.35 | 1.26 |
| Average period of fixed interest, years3) | 0.1 | 0.1 |
1) The figures are calculated on a rolling 12-month basis.
2) Excluding interest on loans with Swedish tenant-owner associations and Finnish housing companies.
3) Interest on loans with Swedish tenant-owner associations and Finnish housing companies.
Bonava uses measurements including alternative the key performance indicators return on capital employed, net debt and equity/assets ratio. The Group considers that these key figures provide complementary information to readers of its financial reports that contribute to assessing the Group's capacity to pay dividends, make strategic investments, meet its financial commitments and to evaluate its profitability. Calculations and more information about the alternative key performance indicators is at www.bonava.com. The Group defines the key figures as indicated below. The definitions are unchanged on earlier periods.
Refers to the period from production start to completion of a building. A housing unit is considered complete on receipt of inspection documentation.
Estimated possibility of developing a site. With respect to housing units, a development right corresponds to an apartment or a semi-detached or detached house. Either ownership of a site or an option on ownership of the site is a prerequisite for being granted access to a development right.
The time when Bonava starts production of a building. At this time, capitalised expenditure for the site and development expenses are recognised as units in ongoing production.
Refers to Bonava's holdings of land and building rights for future residential development and capitalised project properties held for future development.
Refers to housing units for which inspection documents have been received, but the unit has not yet been sold; alternatively has been sold but not handed over to the customer.
Recognised expenses in relation to the calculated total expenses of ongoing housing projects.
Number of housing units sold in production in relation to the total number of housing units in production.
Number of housing units sold that have been occupied by the purchaser. Once the purchaser has taken over occupancy, the purchase consideration is recognised as net sales, and expenses incurred for the housing unit are recognised as production costs.
The number of reserved housing units in production in relation to the total number of housing units in production.
Number of housing units for which binding sales agreements have been signed with the customer and production of the housing unit has started.
Share of risk-bearing capital Total shareholders' equity and deferred tax liabilities as a percentage of total assets.
Profit after financial items on a rolling 12-month basis following the reversal of interest expense as a percentage of average capital employed.
Dividend yield
Dividend as a percentage of the share price at year-end.
Nominal interest rate weighted by interest-bearing liabilities outstanding on the Balance Sheet date.
Remaining fixed-interest term weighted by interest-bearing liabilities.
Average shareholders' equity Average shareholders' equity as of the five last quarters.
Average capital employed Average capital employed as of the five last quarters.
Net sales on a rolling 12-month basis divided by average capital employed.
Costs incurred for land, such as development expenses for architects and other contractor-related costs, utilityconnection fees and construction.
Interest-bearing liabilities and provisions less financial assets including cash and cash equivalents.
Net sales are recognised when the housing unit is handed over to the end customer. Property sales are recognised on the date when significant risks and rewards are transferred to the buyer, which normally coincides with transfer of ownership. Net income is subject to the same definition.
Operating profit as a percentage of net sales.
Profit/loss after financial items plus financial expense divided by financial expense, calculated on a rolling 12-month basis.
Net debt divided by shareholders' equity.
Total equity as a percentage of total assets.
Total assets less interest-free liabilities including deferred tax liabilities.
Earnings per share Net profit/loss for the period divided by the weighted number of shares for the period.
Stockholm, Sweden, 25 January 2017
On the half of the Board of Directors of Bonava AB (publ)
Joachim Hallengren, President and CEO
This report is unaudited.
For more information, please contact Ann-Sofi Danielsson, CFO and Head of Investor Relations [email protected] Tel: +46 706 740 720
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