Earnings Release • Feb 2, 2018
Earnings Release
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| 2017 | 2016 | 2017 | 2016 | |
|---|---|---|---|---|
| SEK M | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Net sales | 6,055 | 6,584 | 14,479 | 13,492 |
| Operating profit | 820 | 985 | 1,946 | 1,562 |
| Operating margin, % | 13.5 | 15.0 | 13.4 | 11.6 |
| Profit after financial items | 759 | 918 | 1,721 | 1,283 |
| Profit for the period after tax | 650 | 717 | 1,402 | 1,004 |
| Earnings per share, SEK1) | 6.03 | 6.61 | 12.99 | 9.26 |
| Cash flow before financing | 1,080 | 1,428 | -26 | 536 |
| Net debt2) | 4,165 | 3,699 | 4,165 | 3,699 |
| Net debt, excl. tenant-owners associations/housing companies2) | -168 | 75 | -168 | 75 |
| Capital employed at period end | 12,003 | 10,134 | 12,003 | 10,134 |
| Return on capital employed, % | 16.6 | 14.6 | 16.6 | 14.6 |
| Equity/assets ratio, % | 33.7 | 33.7 | 33.7 | 33.7 |
| Number of housing units started in the period | 2,603 | 2,682 | 6,702 | 5,832 |
| Number of housing units in production at period end | 9,880 | 9,113 | 9,880 | 9,113 |
| Number of housing units sold in the period | 2,496 | 2,717 | 5,702 | 6,233 |
| Number of housing units recognized for profit in the period | 2,412 | 2,291 | 5,464 | 4,778 |
1) No dilution effect.
2) For specification, see Note 2.
For definitions of key performance indicators, see www.bonava.com/investor-relations/financial-information
Bonava AB (publ) Lindhagensgatan 72, 112 18 Stockholm, Sweden Tel: +46 8 409 544 00 Corp. ID no: 556928-0380 bonava.com 2
JOACHIM HALLENGREN, PRESIDENT AND CEO
"With our broad geographical spread, our diversified offering, our strong financial position and our sharp focus on affordable housing, we are well prepared for the future."
We finished the year with a good quarter in terms of profit. Operating profit was SEK 820 M (985) and included profit from land sales of SEK 45 M (197). Operating margin adjusted for profit from land sales was in line with last year at 13.1 (13.3) per cent. Net sales decreased despite more units being recognised for profit. This was due to less land sales and a changed product mix, including a larger proportion units at lower prices being recognised for profit in Sweden and in Denmark.
The strong profit contributed to Bonava's best year to date in terms of net sales and operating profit. Net sales for the full year increased to SEK 14,479 M (13,492) and operating profit increased to SEK 1,946 M (1,562). Operating profit included SEK 492 M (188) in profit from land sales. Profit after tax was SEK 1,402 M (1,004), resulting in earnings per share of SEK 12.99 (9.26). Cash flow for the quarter was strong, we met our financial targets and the Board of Directors proposes an increased dividend for the year of SEK 5.20 (3.80) per share.
The number of sold units decreased by 8 per cent in the quarter, driven by a weak development in Sweden. The Swedish market became after a period of decreased housing prices, political decisions
and negative market psychology more cautious during the fall. It was not unexpected with a correction on the Swedish market after the strong upswing of recent years and what we saw in the fourth quarter was an increased uncertainty and a shift where buyers and sellers need to find each other at a new price level. It's too early to draw any conclusions about how long the uncertainty will hold on, but I note that there is a good underlying demand and macroeconomic conditions are still favorable to the housing market in Sweden. On our second largest market Germany sales increased both during the quarter and for the full year. The German economy is strong and there is a high demand for housing from consumers as well as investors. During the quarter, we sold 1,358 (1,009) units in Germany and in total for the year we increased the number of homes sold in Germany by 25 per cent.
Productivity in our sector is relatively low compared to other industries. To increase our efficiency, we have invested in a number of projects such as digitalisation during the year, which has been reflected in increased administration expenses for the year. These are investments for the future that enable us to offer even better and more affordable housing for our customers.
Bonava is standing on a stable foundation and has a low risk profile. We have a broad offering for consumers and investors alike. During the year, we completed investor deals corresponding to some 30 per cent of total sales, in line with our targets. Furthermore, we have a presence in eight countries and on 23 markets. This enables us to satisfy local changes in demand and invest in the markets generating the best returns. In line with our strategy, we have therefore continued to expand in Germany and increased the number of building rights and housing starts. Our equity/assets ratio is good, and adjusted for loans in tenant-owner associations and Finnish housing companies we had a positive net cash position at the end of the year. With our broad geographical spread, our diversified offering, our strong financial position and our sharp focus on affordable, we are well prepared for the future.
Joachim Hallengren, President and CEO
Bonava's origins are within the construction group NCC, and it has a long history of developing housing and vibrant neighbourhoods. We have been active in residential and community development ever since the 1930s, and over the years, we have gradually sharpened our focus on residential development. Our experience and know-how have been gathered from our own projects and acquisitions. In 2009, these operations became an independent business area – NCC Housing. We took another step last year, when we were listed on Nasdaq Stockholm. Our focus is on developing affordable and sustainable
housing for consumers and investors on selected markets where we can utilise our competence effectively and optimise our resources throughout the value chain – from project managing land to finished homes.
Bonava develops and sells homes across 23 regions in eight countries. Bonava's selected geographical markets are Sweden, Germany, Finland, Denmark, Norway, St. Petersburg, Estonia and Latvia. Bonava focuses on major city regions in pronounced growth and with stable local labour markets,
which generates demand for new housing over time.
We develop land into affordable and sustainable neighbourhoods, with housing projects that are adapted to our customers' wants and needs, as well as the unique conditions in each location. Bonava provides multi-family housing and single-family housing, and develops homes for consumers and investors, such as pension funds, alongside municipalities and other stakeholders. That is how Bonava creates new and vibrant neighbourhoods.
All comparative figures in this report refer to the corresponding period of the previous year. Rounding errors may occur.
The housing market in Sweden was cautious in the quarter, and average house prices fell across the country. House prices in Germany continued to increase in the quarter, with strong consumer and investor demand. In Finland, demand was good from consumers and investors alike, and house prices continued to increase slightly. In Denmark, house prices continued to increase in the areas where Bonava is active and demand for housing was good. In Bergen, Norway, house prices decreased slightly following several years of sharply rising prices. The housing market in St. Petersburg remained awaiting with stable prices. The investor business remained strong in Sweden, Germany, Finland and Denmark–Norway.
Net sales amounted to SEK 6,055 M (6,584). The decrease was due to lower net sales from consumers in Sweden, Finland and Denmark–Norway, where average prices were down on the previous year. Land sales were also lower in Sweden. In the quarter, 1,857 (2,090) housing units for consumers were recognised for profit. The average price per housing unit for consumers was
unchanged at SEK 2.6 M (2.6). Net sales from investors increased in Germany, Finland and Denmark–Norway. A total of 555 (201) housing units for investors were recognised for profit. Changed exchange rates had a positive effect of SEK 88 M on consolidated net sales in year-on-year terms.
Operating profit was SEK 820 M (985) in the period. The decrease was mainly due to lower profit from land sales, which amounted to SEK 45 M (197). Operating profit was charged with impairment losses on properties held for future development of SEK 34 M (18), and increased selling and administration expenses, including expenses for new IT systems.
Exchange rate fluctuations had a positive impact of SEK 14 M on year-on-year operating profit.
In the previous year, consolidated profit was charged with reorganization costs relating to creating an independent Bonava of SEK 22 M in the quarter.
Net financial items were SEK -61 M (-68). The improvement was mainly due to reduced borrowing denominated in roubles at lower interest. Profit after financial items for the fourth quarter 2017 was SEK 759 (918) M.
Tax on profit for the period was SEK -109 M (-201), corresponding to a tax rate of 14 (22) per cent. The lower tax rate is mainly due to tax free sales of land.
Profit for the period after tax was SEK 650 M (717).
Net sales amounted to SEK 14,479 M (13,492). The increase was due to increased number of profit recognized housing units to investors in Sweden, Germany, Finland and Denmark–Norway. Net sales from consumers decreased as fewer housing units were recognised for profit in Finland and Denmark–Norway, while more housing units were recognised for profit in Sweden and Germany. A total of 4,294 (4,371) housing units for consumers were recognised for profit. The average price per housing unit for consumers was SEK 2.6 M (2.7). The number of housing units for investors recognised for profit was 1,170 (407).
Exchange rate fluctuations had a positive impact of SEK 232 M on consolidated net sales year-on-year.
Operating profit for the period was SEK 1,946 M (1,562). The number of housing units recognised for profit increased and margins improved in both Sweden and
Germany. Profit from land sales was SEK 492 M (188), with the increase mainly attributable to Sweden. Last year, profit was charged with SEK -91 M relating to land sales in Latvia. Operating profit was charged with impairment losses on properties held for future development of SEK 34 M (18), and increased selling and administration expenses to meet increased demand.
Exchange rate fluctuations had a positive profit impact of SEK 27 M compared to the corresponding period last year. In the previous year, consolidated profit was charged with reorganization costs relating to creating an independent Bonava of SEK 85 M.
Net financial items were SEK -226 M (-279). The improvement was attributable to lower net borrowing, and a reduced debt denominated in roubles at lower interest rates. Profit before tax for January to December 2017 was SEK 1,721 M (1,283). Tax on profit for
the period was SEK -319 M (-278), corresponding to a tax rate of 19 (22) per cent. Profit after tax for the period was SEK 1,402 M (1,004).
| 2017 | 2016 | 2017 | 2016 | |
|---|---|---|---|---|
| SEK M | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Net sales per segment | ||||
| Sweden | 1,188 | 1,768 | 5,699 | 5,040 |
| Germany | 2,686 | 2,231 | 5,049 | 3,907 |
| Finland | 690 | 1,223 | 1,290 | 1,516 |
| Denmark–Norway | 986 | 1,019 | 1,454 | 1,931 |
| St. Petersburg | 342 | 298 | 727 | 915 |
| Other and eliminations | 163 | 44 | 259 | 182 |
| Total | 6,055 | 6,584 | 14,479 | 13,492 |
| 2017 | 2016 | 2017 | 2016 | |
|---|---|---|---|---|
| SEK M | Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec |
| Operating profit per segment | ||||
| Sweden | 226 | 383 | 1,230 | 920 |
| Germany | 424 | 342 | 668 | 477 |
| Finland | 68 | 163 | 1 | 92 |
| Denmark–Norway | 138 | 144 | 141 | 194 |
| St. Petersburg | 48 | 34 | 104 | 178 |
| Other and eliminations | -84 | -80 | -197 | -298 |
| Total | 820 | 985 | 1,946 | 1,562 |
Total assets were SEK 19,713 M (16,770). The increase was mainly due to more housing units in ongoing housing production and increased volume of land held for future development.
Net debt amounted to SEK 4,165 M (3,699), of which net debt in Swedish tenant-owner associations and Finnish housing companies amounted to SEK 4,333 M (3,624). Net debt was up on year-end 2016 mainly due to net investments in housing projects during the year. As of 30 September 2017, net debt was SEK 5,041 M. Excluding tenant-owner associations and housing companies the Group had a net cash position of SEK 168 M at year end (net debt of SEK 75 M previous year).
Return on capital employed was 16.6 (14.6) per cent. The improvement was due to an
increased operating profit in Sweden and Germany. Capital employed was SEK 12,003 M (10,134) at the end of the period. Capital employed increased as a result of higher volumes of ongoing housing production and properties held for future development in Germany, Finland and Denmark– Norway. As of 30 September 2017, capital employed was SEK 11,561 M.
As of 31 December 2017, the equity/assets ratio was 33.7 (33.7) per cent. Bonava's equity/assets ratio is affected by seasonal fluctuations as the company's assets normally 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 0.6 (0.7). The debt/equity ratio excluding tenant-owner associations and housing companies was 0,0 (0,0).
Cash flow before financing was SEK 1,080 M (1,428) for the quarter.
Cash flow from operating activities before changes in working capital was down year-on-year as profit after financial items was down in the quarter.
Cash flow from sales of housing projects was in line with the previous year. Increased sales of housing projects in Germany were offset by a decrease in Finland and Denmark–Norway. Investments in housing projects increased, mainly in Germany and Finland.
Cash flow from changes in other working capital was up on the previous year as a result of increased customer advances in Sweden and Finland in the quarter.
Cash flow before financing amounted to SEK -26 M (536).
Cash flow from operating activities before change in working capital increased as profit after financial items was up. To some extent, this was offset by lower provisions.
Land investments and housing units in production increased across all business areas with the exception of St. Petersburg. The number of housing units recognised for profit rose, which increased cash flow from sales of housing development projects, mainly in Sweden, Germany and Finland.
Cash flow from other working capital was up on the previous year due to increased customer advances, mainly in Finland. Cash flow from investing activities improved, as Bonava invested in new IT systems in the previous year.
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, which means that a majority of housing units is delivered to customers in the fourth quarter. Accordingly, earnings are usually stronger in the fourth quarter than in other quarters, as illustrated on page 10 in the graph "Estimated completions per quarter".
In the quarter, 1,336 (1,764) housing units were sold to consumers and 1,160 (953) housing units were sold to investors. Sales to consumers increased, mainly in Germany. Sales decreased in Sweden and St. Petersburg yearon-year. The total number of production starts decreased primarily due to a lower number of housing starts in Sweden. The number of production starts increased in Germany, Finland and Denmark–Norway. In the quarter, housing units for investors were sold and started in Sweden, Germany, Finland and Denmark– Norway.
In the period, 1,443 (1,729) housing units were started for consumers, and 1,160 (953) for investors.
At the end of the period, there were 6,844 (6,158) housing units for consumers and 3,036 (2,955) housing units for investors in production. As of 31 December 2017, the sales rate was 54 (63) per cent for housing units for consumers and 100 (100) per cent for housing units for investors. At the end of the period, the rate of completion was 44 (49) per cent for consumers and 32 (40) per cent for investors.
In the period, 3,984 (4,311) housing units were sold to consumers, and 1,718 (1,922) housing units were sold to investors. The number of housing starts for consumers was 4,984 (4,041) and 1,718 (1,791) for investors.
In year-on-year terms, there are more housing units to complete from the first quarter 2018 onwards. Of the total number of housing units yet to be completed, and estimated 56 (60) per cent will be completed in 2018.
There were 31,400 (28,000) building rights, of which 16,800 (17,500) were recognized in the Balance Sheet. Bonava continues to expand on growth markets, mainly in Germany, where the number of building rights was 8,300 (6,400) at the end of the year.
Unsold, completed housing units at year-end The number of unsold completed housing units at period end was 284 (180). All these housing units were for consumers, mainly in St. Petersburg and Finland.
| 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|
|---|---|---|---|---|
| Housing units in ongoing production for consumers, at period end | 6,844 | 6,158 | 6,844 | 6,158 |
| Housing units in ongoing production for investors, at period end | 3,036 | 2,955 | 3,036 | 2,955 |
| Total number of housing units in ongoing production | 9,880 | 9,113 | 9,880 | 9,113 |
| Sales rate for housing units in ongoing production, % | 68 | 75 | 68 | 75 |
| Reservation rate for housing units in ongoing production, % | 2 | 4 | 2 | 4 |
| Sold and reserved housing units in ongoing production, % | 70 | 79 | 70 | 79 |
| Housing units sold to consumers in the period | 1,336 | 1,764 | 3,984 | 4,311 |
| Housing units sold to investors in the period | 1,160 | 953 | 1,718 | 1,922 |
| Total housing units sold | 2,496 | 2,717 | 5,702 | 6,233 |
| Housing starts for consumers in the period | 1,443 | 1,729 | 4,984 | 4,041 |
| Housing starts for investors in the period | 1,160 | 953 | 1,718 | 1,791 |
| Total housing starts | 2,603 | 2,682 | 6,702 | 5,832 |
The figure illustrates the number of housing units in production per quarter and the share of housing units 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.
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 by the Group's Treasury Department in order to minimise and control Bonava's risk exposure in accordance with the Finance Policy.
Customer credit risk is managed by the individual business unit. A centralised insurance function is responsible for Group-wide non-life and liability insurance, primarily property and contractor's insurance. This function also conducts preventative 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.
For more information, see Risks and risk management on pages 49–52 of Bonava's Annual Report 2016 at www.bonava.com.
The Group's average number of employees was 1,696 (1,482) in the period. At the end of the year the number of employees was 1,807 (1,662).
Bonava has two classes of share, class A and class B. The closing price on 29 December 2017 was SEK 113.50 per class A share and SEK 114.60 per class B share, corresponding to market capitalisation of SEK 12.3 Bn.
Bonava's share capital was SEK 434 M on the reporting date, divided between 108,435,822 shares and 226,961,367 votes. As of 29 December 2017, Bonava had 13,169,505 class A share and 95,266,317 class B shares. Each class A share carries ten votes and each class B share one vote.
At the end of the quarter, there were 35,299 shareholders. Bonava's largest shareholder was Nordstjernan AB. As of 29 December 2017, the ten largest shareholders controlled 62.7 per cent of the capital and 69.7 per cent of the votes.
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 47 M to NCC AB, has been reported at an amount corresponding to the fair value of four years' payments.
There were no significant events, in addition to ordinary operations, in the period.
The Board of Directors proposes a dividend of SEK 5.20 (3.80) per share.
| No. of class A shares |
No. of class B shares |
Holding % |
Votes % |
|
|---|---|---|---|---|
| Nordstjernan AB | 10,000,000 | 10,323,759 | 18.7 | 48.6 |
| AMF - Försäkring och Fonder | 0 | 14,036,388 | 12.9 | 6.2 |
| Swedbank Robur fonder | 0 | 8,332,261 | 7.7 | 3.7 |
| Lannebo fonder | 11,772 | 5,326,355 | 4.9 | 2.4 |
| SEB Investment Management | 0 | 4,962,122 | 4.6 | 2.2 |
| Fjärde ap-fonen | 3,343 | 4,146,636 | 3.8 | 1.8 |
| Carnegie fonder | 0 | 3,250,000 | 3.0 | 1.4 |
| Handelsbanken fonder | 0 | 3,051,217 | 2.8 | 1.3 |
| Länsförsäkringar fondförvaltning AB | 0 | 2,946,335 | 2.7 | 1.3 |
| Afa försäkring | 0 | 1,620,638 | 1.5 | 0.7 |
| Total, ten largest shareholders | 10,015,115 | 57,995,711 | 62.7 | 69.7 |
| Other | 3,154,390 | 37,270,606 | 37.3 | 30.3 |
| Total | 13,169,505 | 95,266,317 | 100.0 | 100.0 |
In Sweden, Bonava's offering focuses on consumers and investors through multifamily and single-family housing. The consumer markets comprise Stockholm, Gothenburg, Linköping, Uppsala and Umeå. Investor activities focus on some 15 cities in Sweden.
In Germany, Bonava is active in Berlin, Hamburg, the Baltic region, Saxony, Rhine-Ruhr, Cologne/Bonn, Rhine-Main and Rhine-Neckar/Stuttgart. The offering is aimed at consumers and investors and includes detached houses and multi-family housing.
In Finland, Bonava is active in Helsinki, Espoo, Vanda, Turku, Tampere and Oulo. The offering is aimed at consumers and investors alike, mainly within multi-family housing.
Bonava is active in Copenhagen in Denmark and Bergen in Norway. The offering encompasses multi-family housing and detached houses and is aimed at consumers and investors.
On the Russian market, Bonava is only active in St. Petersburg. The offering focuses on multi-family housing for consumers and investors.
Number of housing units: 16
VITBOKEN
for consumers
Project start: Q4 2017 Location: Stockholm, Sweden Housing category: Detached houses
Project start: Q4 2017 Location: Heidelberg, Germany Housing category: Multi-family housing for investors Number of housing units: 167
market, shopping centre and transport links.
Modern student apartments in the trendy quarter of Rohrbach in the University town of Heidelberg. Furnished and high tech apartments. Only a few minutes by train to the city with more than 30,000 students.
AS OY VANTAAN KULTARIKONPOLKU Project start: Q4 2017 Location: Tikkurila, Finland Housing category: Multi-family housing for investors Number of housing units: 75
Residential area close to many services, health care and sporting facilities. The neighbourhood is close to the centre of Tikkurila.
EGEHUSENE Project start: Q4 2017 Location: Glostrup, Denmark Housing category: Multi-family housing Number of housing units: 24
Affordable apartments close to nature within walking distance of schools, nurseries and sporting facilities.
No projects were started in the quarter.
The housing market in Sweden was cautious in the quarter and average housing prices decreased across the country.
Net sales
Net sales were down on the previous year as a result of lower average prices on housing units recognised for consumers and decreased land sales. The average price per housing unit to consumers was SEK 3.5 M (4.9). The decrease was mainly due to fewer housing units being recognised for profit.
Operating profit was SEK 226 M (383), with the decrease due to a reduction in land sales to SEK 45 M (196). The number of housing units recognised for profit increased and margins improved. The administration costs were higher year-on-year from the larger organisation.
Net sales increased in Sweden due to more housing units being handed over to consumers and investors, and increased sales of land. The average price per housing unit to consumers was SEK 3.6 M (4.1). The decrease was mainly due to fewer housing units being recognized for profit.
Operating profit improved as more housing units were recognised for profit and profit from land sales increased to SEK 482 M (257).
In Sweden, ongoing housing production increased slightly. Other current assets were up on the previous year, while the proportion of interest-free project financing remained unchanged and capital tied up increased on the previous year. The improved profit generated an increase in return on capital employed.
| 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 1,188 | 1,768 | 5,699 | 5,040 |
| Operating profit, SEK M | 226 | 383 | 1,230 | 920 |
| Operating margin, % | 19.0 | 21.6 | 21.6 | 18.3 |
| Capital employed at period end, SEK M | 4,986 | 4,350 | 4,986 | 4,350 |
| Return on capital employed, % | 24.7 | 19.3 | 24.7 | 19.3 |
| Building rights | ||||
| Building rights, at period end, number | 7,500 | 7,200 | 7,500 | 7,200 |
| of which building rights off-balance sheet building rights, number | 4,900 | 3,300 | 4,900 | 3,300 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 87 | 468 | 621 | 1,123 |
| Number of started housing units during the period | 255 | 563 | 965 | 1,108 |
| Number of profit-recognised housing units during the period | 320 | 259 | 1,245 | 1,013 |
| Number of housing units in production at period end | 2,009 | 2,304 | 2,009 | 2,304 |
| Sales rate for housing units in production, % | 55 | 75 | 55 | 75 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 90 | 227 | 90 | 579 |
| Number of started housing units during the period | 90 | 227 | 90 | 448 |
| Number of profit-recognised housing units during the period | 158 | 132 | ||
| Number of housing units in production at period end | 538 | 606 | 538 | 606 |
| Sales rate for housing units in production, % | 100 | 100 | 100 | 100 |
Housing prices in Germany continued to increase in the quarter and demand was strong from consumers and investors alike.
Net sales
In Germany, net sales increased as more housing units for consumers were recognised for profit. The average price per housing unit to consumers was SEK 3.2 M (3.3). 319 housing units for investors were recognised for profit in the period. Last year, 201 housing units for investors were recognised for profit in Germany.
Operating profit improved in Germany as more housing units were recognised for profit year-on-year. Operating margin improved slightly in the period.
In Germany, net sales increased, mainly because more housing units were handed over to investors. 611 housing units for investors were recognised for profit in the year, compared to 201 housing units in the previous year. Net sales from consumers increased as more housing units were recognised for profit. The average price per housing units for consumers was SEK 3.3 M (3.3).
Operating profit in Germany improved due to increased net sales at slightly improved margins. Administration costs were up on the previous year as a result of a larger organisation.
The ongoing expansion in Germany increased properties held for future development and housing units in production in year-on-year terms, while capital employed was also up. Despite the improved profit, this meant a decrease in return on capital employed year-on-year.
| 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 2,686 | 2,231 | 5,049 | 3,907 |
| Operating profit, SEK M | 424 | 342 | 668 | 477 |
| Operating margin, % | 15.8 | 15.3 | 13.2 | 12.2 |
| Capital employed at period end, SEK M | 3,037 | 2,163 | 3,037 | 2,163 |
| Return on capital employed, % | 23.0 | 25.4 | 23.0 | 25.4 |
| Building rights | ||||
| Building rights, at period end, number | 8,300 | 6,400 | 8,300 | 6,400 |
| of which building rights off-balance sheet building rights, number | 3,700 | 2,700 | 3,700 | 2,700 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 589 | 530 | 1,506 | 1,288 |
| Number of started housing units during the period | 639 | 775 | 1,455 | 1,455 |
| Number of profit-recognised housing units during the period | 634 | 544 | 1,135 | 1,057 |
| Number of housing units in production at period end | 2,105 | 1,785 | 2,105 | 1,785 |
| Sales rate for housing units in production, % | 68 | 59 | 68 | 59 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 769 | 479 | 906 | 645 |
| Number of started housing units during the period | 769 | 479 | 906 | 645 |
| Number of profit-recognised housing units during the period | 319 | 201 | 611 | 201 |
| Number of housing units in production at period end | 1,479 | 1,184 | 1,479 | 1,184 |
| Sales rate for housing units in production, % | 100 | 100 | 100 | 100 |
In Finland, demand was good from consumers and investors alike, and housing prices continued to increase slightly.
In Finland net sales decreased as fewer housing units were handed over to consumers. The average price for housing units to consumers decreased to SEK 1.8 M (2.1) as a result of fewer housing units recognised for profit in the Helsinki area. 162 housing units for investors were completed and recognised for profit in the quarter. In the previous year, no housing units for investors were recognised for profit in the fourth quarter.
Operating profit in Finland decreased in the fourth quarter year-onyear due to lower net sales at reduced margins. Profit from land sales was SEK 0 M (1). Administration expenses were down in year-on-year terms.
Net sales in Finland were lower in year-on-year terms because of fewer housing units for consumers recognised for profit, while more housing units for investors were recognised for profit. The average price for housing units for consumers was SEK 2.0 M (2.1). 327 housing units for investors were recognised for profit in the period, no projects for investors were recognised for profit in the previous year.
Operating profit in Finland decreased year-on-year due to lower net sales at reduced margins. Finland is establishing proprietary production resources which generated increased administration costs. Profit from land sales totalled SEK 9 M (4) in the period.
Finland had more housing units in production compared to the previous year and current assets increased. This was only partly offset by increased interest-free project financing and capital employed was higher year-on-year. Return on capital employed decreased as a result of the lower profit.
| 2017 | 2016 | 2017 | 2016 | |
|---|---|---|---|---|
| Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |
| Key financial figures | ||||
| Net sales, SEK M | 690 | 1,223 | 1,290 | 1,516 |
| Operating profit, SEK M | 68 | 163 | 1 | 92 |
| Operating margin, % | 9.8 | 13.3 | 0.0 | 6.1 |
| Capital employed at period end, SEK M | 1,284 | 1,092 | 1,284 | 1,092 |
| Return on capital employed, % | -0.2 | 7.1 | -0.2 | 7.1 |
| Building rights | ||||
| Building rights, at period end, number | 7,100 | 7,300 | 7,100 | 7,300 |
| of which building rights off-balance sheet building rights, number | 4,300 | 4,200 | 4,300 | 4,200 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 235 | 220 | 579 | 637 |
| Number of started housing units during the period | 306 | 168 | 702 | 522 |
| Number of profit-recognised housing units during the period | 260 | 538 | 398 | 658 |
| Number of housing units in production at period end | 865 | 567 | 865 | 567 |
| Sales rate for housing units in production, % | 54 | 50 | 54 | 50 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 277 | 247 | 628 | 624 |
| Number of started housing units during the period | 277 | 247 | 628 | 624 |
| Number of profit-recognised housing units during the period | 162 | 327 | ||
| Number of housing units in production at period end | 925 | 1,091 | 925 | 1,091 |
| Sales rate for housing units in production, % | 100 | 100 | 100 | 100 |
In Denmark, prices continued to increase slightly in the regions where Bonava is active and demand for housing is good. In Norway, where Bonava is only active in Bergen, prices fell slightly following several years of strong price growth.
Net sales in Denmark–Norway were lower than in the previous year due to fewer housing units being handed over to consumers. The average price decreased to SEK 3.9 M (4.3) as more housing units in central Copenhagen were recognised for profit last year. One project for investors was recognised for profit in the period. In the previous year, no projects for investors were recognised for profit.
Operating profit for Denmark–Norway decreased because of lower net sales, while operating margin remained unchanged. Profit from land sales was SEK 0 M (2).
The number of housing units for consumers recognised for profit was down on the previous year and net sales decreased. The average price of housing units for consumers recognised for profit decreased to SEK 3.7 M (4.4). Last year, more housing units in central Copenhagen were recognised for profit at a high average price. One project for investors was recognised for profit in the year. Last year, no projects for investors were recognised for profit.
Operating profit for Denmark–Norway decreased year-on-year because of lower net sales. Profit from land sales was SEK 1 M (18) in the year.
Denmark–Norway increased properties held for future development and had more housing units in production in year-on-year terms. This was only partly offset by increased interest-free financing and capital employed was up on the previous year. Return on capital employed was down due to the decreased operating profit.
| 2017 | 2016 | 2017 | 2016 | |
|---|---|---|---|---|
| Oct–Dec | Oct–Dec | Jan–Dec | Jan–Dec | |
| Key financial figures | ||||
| Net sales, SEK M | 986 | 1,019 | 1,454 | 1,931 |
| Operating profit, SEK M | 138 | 144 | 141 | 194 |
| Operating margin, % | 14.0 | 14.1 | 9.7 | 10.0 |
| Capital employed at period end, SEK M | 857 | 736 | 857 | 736 |
| Return on capital employed, % | 15.3 | 16.0 | 15.3 | 16.0 |
| Building rights | ||||
| Building rights, at period end, number | 2,000 | 900 | 2,000 | 900 |
| of which building rights off-balance sheet building rights, number | 800 | 300 | 800 | 300 |
| Housing development for consumers | ||||
| Number of sold housing units during the period | 88 | 77 | 362 | 299 |
| Number of started housing units during the period | 141 | 107 | 507 | 249 |
| Number of profit-recognised housing units during the period | 181 | 218 | 312 | 396 |
| Number of housing units in production at period end | 517 | 316 | 517 | 316 |
| Sales rate for housing units in production, % | 46 | 58 | 46 | 58 |
| Housing development for investors | ||||
| Number of sold housing units during the period | 24 | 94 | 74 | |
| Number of started housing units during the period | 24 | 94 | 74 | |
| Number of profit-recognised housing units during the period | 74 | 74 | ||
| Number of housing units in production at period end | 94 | 74 | 94 | 74 |
| Sales rate for housing units in production, % | 100 | 100 | 100 | 100 |
The housing market in St. Petersburg remained awaiting with stable prices.
Operational progress
In St. Petersburg, net sales increased year-on-year as the average price per housing unit for consumers rose to SEK 1.4 M (0.6). In the period, more housing units were recognised for profit in a higher price segment than in the previous year.
Operating profit was up on the previous year thanks to increased net sales at improved margins. Bonava aims to sign an agreement regarding the sale of land at a price below book value, and profit was charged with impairment losses on properties held for future development totalling SEK 34 M. The corresponding period in the previous year was charged with impairment losses on properties held for future development of SEK 18 M.
Net sales decreased due to a lower number of housing units for consumers recognised for profit. The average price was SEK 0.8 M (0.8). In the previous year, one project for investors was recognised for profit.
Operating profit was down on the previous year due to a lower number of housing units recognised for profit. Profit was charged with impairment losses on properties held for future development of SEK 34 M (18).
St. Petersburg decreased properties held for future development as more projects were started and no investments in new land have been made since the previous year. Ongoing housing projects decreased and interest-free financing remained at the same level as in the previous year and capital employed decreased. Return on capital employed decreased as a result of the lower operating profit.
| 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|
|---|---|---|---|---|
| Key financial figures | ||||
| Net sales, SEK M | 342 | 298 | 727 | 915 |
| Operating profit, SEK M | 48 | 34 | 104 | 178 |
| Operating margin, % | 14.0 | 11.3 | 14.3 | 19.4 |
| Capital employed at period end, SEK M | 1,108 | 1,277 | 1,108 | 1,277 |
| Return on capital employed, % | 8.4 | 16.5 | 8.4 | 16.5 |
| Building rights | ||||
| Building rights, at period end, number | 3,500 | 4,400 | 3,500 | 4,400 |
| of which building rights off-balance sheet building rights, number | ||||
| Housing development for consumers | ||||
| Number of sold housing units during the period | 220 | 357 | 516 | 653 |
| Number of started housing units during the period | 813 | 363 | ||
| Number of profit-recognised housing units during the period | 248 | 479 | 833 | 1,026 |
| Number of housing units in production at period end | 813 | 800 | 813 | 800 |
| Sales rate for housing units in production, % | 33 | 61 | 33 | 61 |
| 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 | ||||
| Sales rate for housing units in production, % |
| SEK M | Note 1, 6 |
2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|---|---|---|
| Net sales | 4 | 6,055 | 6,584 | 14,479 | 13,492 |
| Production costs | -4,998 | -5,391 | -11,710 | -11,235 | |
| Gross profit | 1,057 | 1,193 | 2,768 | 2,257 | |
| Selling and administrative expenses | -236 | -185 | -822 | -610 | |
| Non-recurring costs1) | -22 | -85 | |||
| Operating profit | 4 | 820 | 985 | 1,946 | 1,562 |
| Financial income | 2 | 6 | 11 | 13 | |
| Financial expenses | -63 | -73 | -236 | -292 | |
| Net financial items | -61 | -68 | -226 | -279 | |
| Profit after financial items | 4 | 759 | 918 | 1,721 | 1,283 |
| Tax on profit for the period | -109 | -201 | -319 | -278 | |
| Net profit for the period | 650 | 717 | 1,402 | 1,004 | |
| Attributable to: | |||||
| Bonava AB's shareholders | 650 | 715 | 1,402 | 1,003 | |
| Non-controlling interests | 2 | 2 | |||
| Net profit for the period | 650 | 717 | 1,402 | 1,004 | |
| Per share data before and after dilution | |||||
| Earnings per share, SEK | 6.03 | 6.61 | 12.99 | 9.26 | |
| Cash flow from operating activities, SEK | 10.12 | 13.75 | 0.79 | 6.54 | |
| Shareholders' equity, SEK | 61.48 | 52.25 | 61.48 | 52.25 | |
| No. of shares at the end of the period, million2) | 107.9 | 108.1 | 107.9 | 108.1 |
1) Activities relating to Bonava becoming an independent company in 2016.
2) In April 2017, Bonava repurchased 194,800 shares. The total number of shares repurchased as of 31 December 2017 was 549,200 (354,400).
| Note 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|---|
| 650 | 717 | 1,402 | 1,004 |
| 31 | 2 | 13 | 98 |
| 2 | -73 | ||
| -1 | 16 | ||
| 31 | 3 | 13 | 41 |
| 681 | 720 | 1,415 | 1,045 |
| 681 | 717 | 1,415 | 1,042 |
| 4 | 4 | ||
| 681 | 720 | 1,415 | 1,045 |
| SEK M | Note 1, 3, 5, 6 |
2017 31 Dec |
2016 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | 705 | 933 | |
| Current assets | |||
| Properties held for future development | 5,734 | 5,035 | |
| Ongoing housing projects | 9,482 | 7,898 | |
| Completed housing units | 815 | 733 | |
| Current receivables | 1,855 | 1,552 | |
| Cash and cash equivalents | 2 | 1,122 | 619 |
| Total current assets | 19,008 | 15,836 | |
| TOTAL ASSETS | 19,713 | 16,770 | |
| SHAREHOLDERS' EQUITY | |||
| Shareholders' equity attributable to parent company shareholders |
6,633 | 5,648 | |
| Non-controlling interests | 5 | 5 | |
| Total shareholders' equity | 6,638 | 5,652 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 2 | 3,340 | 2,245 |
| Other non-current liabilities | 555 | 271 | |
| Non-current provisions | 658 | 803 | |
| Total non-current liabilities | 4,553 | 3,319 | |
| Current liabilities | |||
| Current interest-bearing liabilities | 2 | 2,024 | 2,236 |
| Other current liabilities | 6,497 | 5,562 | |
| Total current liabilities | 8,521 | 7,799 | |
| Total liabilities | 13,074 | 11,117 | |
| TOTAL EQUITY AND LIABILITIES | 19,713 | 16,770 |
| Shareholders' equity | Total | ||
|---|---|---|---|
| attributable to parent | Non-controlling | shareholders' | |
| SEK M | company shareholders | interests | equity |
| 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 program | 2 | 2 | |
| Closing shareholders' equity, 31 December 2016 | 5,648 | 5 | 5,652 |
| Comprehensive income for the period | 1,415 | 1,415 | |
| Dividend | -410 | -410 | |
| Purchase of treasury shares | -30 | -30 | |
| Performance-based incentive program | 11 | 11 | |
| Closing shareholders' equity, 31 December 2017 | 6,633 | 5 | 6,638 |
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 for 2016 pertains to the fair value of five years' payment.
| SEK M | 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|---|---|
| OPERATING ACTIVITIES | ||||
| Profit after financial items | 759 | 918 | 1,721 | 1,283 |
| Adjustments for items not included in cash flow | 31 | 53 | -52 | 2 |
| Tax paid | -27 | -78 | -206 | -197 |
| Cash flow from operating activities before changes in working capital | 762 | 892 | 1,462 | 1,087 |
| Cash flow from changes in working capital | ||||
| Divestments of housing projects | 5,087 | 5,052 | 11,940 | 10,807 |
| Investments in housing projects | -4,222 | -3,447 | -14,210 | -11,538 |
| Other changes in working capital | -535 | -1,008 | 893 | 352 |
| Cash flow from changes in working capital | 330 | 597 | -1,377 | -379 |
| Cash flow from operating activities | 1,092 | 1,489 | 85 | 708 |
| INVESTING ACTIVITIES | ||||
| Cash flow from investing activities | -12 | -61 | -111 | -173 |
| CASH FLOW BEFORE FINANCING | 1,080 | 1,428 | -26 | 536 |
| FINANCING ACTIVITIES | ||||
| Capital contribution from NCC | 5,051 | |||
| Repayment of loans to NCC1) | -6,012 | |||
| Borrowing1) | 2,059 | |||
| Dividend paid | -205 | -410 | -15 | |
| Purchase of treasury shares | -45 | -30 | -45 | |
| Increase in interest-bearing liabilities | 804 | 881 | 3,247 | 3,077 |
| Decrease in interest-bearing liabilities | -1,075 | -2,206 | -2,387 | -4,801 |
| Change in interest-bearing receivables | 20 | -60 | 109 | 160 |
| Cash flow from financing activities | -457 | -1,429 | 528 | -525 |
| CASH FLOW FOR THE PERIOD | 624 | -1 | 502 | 10 |
| Cash and cash equivalents at the beginning of the period | 494 | 624 | 619 | 585 |
| Exchange rate difference in cash and cash equivalents | 4 | -3 | 1 | 23 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,122 | 619 | 1,122 | 619 |
1) Until its IPO (June 2016), Bonava had short-term financing from NCC Treasury AB, so debt amortisation has been recognised gross in the Cash Flow Statement. Borrowing relates to loans raised at the time of the IPO.
This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and recommendation RFR 1 Supplementary Accounting Rules for Groups from the Swedish Financial Reporting Board.
The accounting policies applied in the preparation of this Interim Report apply to all periods and comply with the accounting policies presented in Note 1 Significant accounting policies in Bonava's Annual Report 2016, pages 92-96. These policies are also available at www.bonava.com.
IFRS 9, Financial Instruments, was implemented in 1 January 2018 and regulates the reporting of finacial instruments. The new standard replaces IAS 39 and contains regulations on how to classify and value financial assets and liabilities, impairment of financial instruments and hedge accounting. Bonava's assessment is that IFRS 9 may impact the value of certain receivables but the effect is assessed not to be essential.
IFRS 15, Revenue Recognition from Contracts with Customers, was implemented on 1 January 2018 and regulates at what time
revenues should be reported. Bonava has carried through an analysis that shows that Bonava will have continued support to report revenues from housing projects to consumers and investors, as well as land sales, at the time when major risks and rewards are transferred to the buyer, normally at the time of handover. Therefore, Bonava will not restate the comparative figures for 2017.
IFRS 16, Leasing, will be implemented on 1 January 2019 and regulates the reporting of leasing agreements. The present value of all leasing expenses should be calculated and reported as a Right of use asset in the Balance Sheet, with the corresponding interest bearing liability. In the Income Statement, the leasing expense are replaced by depreciation and interest expense. According to the present accounting standard only financial leasing has been reported in this manner. At the transition to IFRS 16 total assets, capital employed, net debt and operating profit will be higher which will impact some key figures. Profit after financial items will not be impacted. Bonava has started an analysis in order to quantify the effects of the new leasing standard.
| SEK M | 2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Non-current interest-bearing receivables | 10 | 79 |
| Current interest-bearing receivables | 68 | 84 |
| Cash and cash equivalents | 1,122 | 619 |
| Interest-bearing assets | 1,200 | 782 |
| Non-current interest-bearing liabilities | 3,340 | 2,245 |
| Current interest-bearing liabilities | 2,024 | 2,236 |
| Interest-bearing liabilities | 5,364 | 4,481 |
| Net debt | 4,165 | 3,699 |
| of which, attributable to Swedish tenant-owner associations and Finnish housing companies1) |
| Cash and cash equivalents | 78 | 53 |
|---|---|---|
| Interest-bearing liabilities | 4,411 | 3,677 |
| Net debt in tenant-owner associations and | ||
| housing companies | 4,333 | 3,624 |
| Other net debt | -168 | 75 |
| Net debt | 4,165 | 3,699 |
1) Tenant-owner associations and housing companies' bank borrowing amounted to SEK 4,411 M and debt to Bonava AB was SEK 669 M. Last-mentioned amount have been eliminated in net debt.
Pledged assets, contingent liabilities and guarantee NOTE 3 obligations
| 2017 | 2016 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Assets pledged | ||
| For own liabilities: | ||
| Property mortgages | 2,603 | 1,699 |
| Restricted bank funds | 11 | 22 |
| Total pledged assets | 2,614 | 1,721 |
| Contingent and guarantee liabilities | ||
| Own contingent liabilities: | ||
| Deposits and concession fees1) | 1,204 | 600 |
| Other guarantees | 105 | 118 |
| Held jointly with other companies | ||
| Liabilities in partnerships | ||
| and limited partnerships | 23 | |
| Total contingent and guarantee liabilities | 1,309 | 741 |
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 2017, SEK M | Sweden | Germany | Finland | Denmark Norway |
St. Petersburg | Other and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 1,188 | 2,685 | 690 | 986 | 342 | 163 | 6,055 |
| Operating profit | 226 | 424 | 68 | 138 | 48 | -84 | 820 |
| Net financial items | -61 | ||||||
| Profit after financial items | 759 | ||||||
| Capital employed at period end | 4,986 | 3,057 | 1,284 | 857 | 1,108 | 711 | 12,003 |
| Oct–Dec 2016, SEK M | 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 |
| Jan–Dec 2017, SEK M | Sweden | Germany | Finland | Denmark Norway |
St. Petersburg | Other and eliminations |
Total |
| Net sales | 5,699 | 5,049 | 1,290 | 1,454 | 727 | 259 | 14,479 |
| Operating profit | 1,230 | 668 | 1 | 141 | 104 | -197 | 1,946 |
| Net financial items | -226 | ||||||
| Profit after financial items | 1,721 | ||||||
| Capital employed at period end | 4,986 | 3,057 | 1,284 | 857 | 1,108 | 711 | 12,003 |
| Jan–Dec 2016, SEK M | 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 |
| Net sales | Operating profit | |||||||
|---|---|---|---|---|---|---|---|---|
| Other and eliminations, SEK M | 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan-Dec |
| Bonava's Head Office1) | 47 | 24 | 212 | 69 | -101 | -82 | -214 | -227 |
| Sales, Latvian property portfolio | 4 | -91 | ||||||
| Operations in Estonia and Latvia | 159 | 44 | 273 | 176 | 18 | 3 | 17 | 20 |
| Adjustments and eliminations | -43 | -23 | -226 | -67 | ||||
| TOTAL | 163 | 44 | 259 | 182 | -84 | -80 | -197 | -298 |
1) Activities relating to Bonava becoming an independent company generated costs of SEK 85 M in 2016, of which SEK 55 M relates to head office. No such costs were reported in 2017. For the period Oct–Dec 2016, costs were SEK 22 M for the Group, of which SEK 14 M were reported for 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 | 2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Derivative instruments used for hedge accounting |
17 | |
| Derivative instruments not used for hedge accounting |
11 | 38 |
| Total assets | 11 | 55 |
| Derivative instruments not used for hedge accounting |
82 | 102 |
| Total liabilities | 82 | 102 |
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.
In the period until 9 June 2016, Bonava constituted the NCC Housing operating segment of NCC AB. After this date, 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 categorised as related parties. Transactions with these parties were not material and have not been specified below.
| Transactions and balances with NCC, SEK M | 2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|
| Sales | 4 | 19 |
| Purchases | 2,583 | 3,314 |
| Financial expenses | 87 | |
| Current receivables | 1 | |
| Non-current interest-bearing liabilities |
35 | 45 |
| Current interest-bearing liabilities | 12 | 12 |
| Accounts payable | 60 | 258 |
| Contingent liabilities | 221 | 76 |
The parent company comprises the operations of Bonava AB (publ). The company's net sales amounted to SEK 212 M (69). Profit/loss after financial items was SEK 284 M (24).
| Note | 2017 | 2016 |
|---|---|---|
| 1 | Jan–Dec | Jan–Dec |
| 212 | 69 | |
| -407 | -295 | |
| -195 | -226 | |
| 432 | 291 | |
| 176 | 148 | |
| -128 | -188 | |
| 284 | 24 | |
| 141 | -5 | |
| 425 | 19 | |
| 3 | 27 | |
| 428 | 45 | |
| Note | 2017 | 2016 | |
|---|---|---|---|
| SEK M | 2 | 31 Dec | 31 Dec |
| Assets | |||
| Fixed assets | 2,509 | 1,955 | |
| Current assets | 3,821 | 4,251 | |
| Total assets | 6,330 | 6,207 | |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 5,208 | 5,210 | |
| Provisions | 2 | 1 | |
| Non-current liabilities | 592 | 609 | |
| Current liabilities | 528 | 387 | |
| Total equity and liabilities | 6,330 | 6,207 | |
The company has prepared its Interim Report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
The accounting policies applied when preparing this Interim Report are applicable for all periods and correspond to the accounting policies presented in Note 1 Significant accounting policies in Bonava's Annual Report 2016, pages 92–96 and page 117. These are also available at www.bonava.com.
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 | 2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Guarantees | 17,740 | 15,485 |
| Group | 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|---|---|
| Building rights, at period end | 31,400 | 28,000 | 31,400 | 28,000 |
| Of which, off-balance-sheet building rights | 14,600 | 10,500 | 14,600 | 10,500 |
| Housing development for consumers | ||||
| Profit-recognised housing units during the period | 1,857 | 2,090 | 4,294 | 4,371 |
| Housing units started during the period | 1,443 | 1,729 | 4,984 | 4,041 |
| Housing units sold during the period | 1,336 | 1,764 | 3,984 | 4,311 |
| Housing units under construction, at period end | 6,844 | 6,158 | 6,844 | 6,158 |
| Sales rate for housing units under construction, % | 54 | 63 | 54 | 63 |
| Reservation rate for housing units under construction, % | 3 | 6 | 3 | 6 |
| Completion rate for housing units under construction, % | 44 | 49 | 44 | 49 |
| Completed housing units, not recognised in profit, at period end | 377 | 373 | 377 | 373 |
| Housing units for sale (ongoing and completed), at period end | 3,443 | 2,440 | 3,443 | 2,440 |
| Housing development for investors | ||||
| Profit-recognised housing units during the period | 555 | 201 | 1,170 | 407 |
| Housing units started during the period | 1,160 | 953 | 1,718 | 1,791 |
| Housing units sold during the period | 1,160 | 953 | 1,718 | 1,922 |
| Housing units under construction, at period end | 3,036 | 2,955 | 3,036 | 2,955 |
| Sales rate for housing units under construction, % | 100 | 100 | 100 | 100 |
| Completion rate for housing units under construction, % | 32 | 40 | 32 | 40 |
| Housing development for consumers | 2017 Oct–Dec |
2016 Oct–Dec |
2017 Jan–Dec |
2016 Jan–Dec |
|---|---|---|---|---|
| Housing units under construction, at beginning of period | 7,430 | 6,666 | 6,158 | 6,432 |
| Housing units started during the period | 1,443 | 1,729 | 4,984 | 4,041 |
| Profit-recognised housing units during the period | -1,857 | -2,090 | -4,294 | -4,371 |
| Decrease (+)/increase (–) in completed housing units, not profit recognised at period end |
-172 | -147 | -4 | 56 |
| Housing units under construction, at period end | 6,844 | 6,158 | 6,844 | 6,158 |
| Housing development for investors | ||||
| Housing units under construction, at beginning of period | 2,431 | 2,405 | 2,955 | 2,346 |
| Housing units started during the period | 1,160 | 953 | 1,718 | 1,791 |
| Profit-recognised housing units during the period | -555 | -201 | -1,170 | -407 |
| Time offset between completion and profit recognition in Bonava Finland1) | -202 | -467 | -775 | |
| Housing units under construction, at period end | 3,036 | 2,955 | 3,036 | 2,955 |
1) Up until 2015, Bonava Finland has profit-recognised housing units for investors at the time of production start. Thus, there has been a time offset between years regarding profit-recognition and completion of housing units for investors. From 2016, profit-recognition of housing units to investors in Bonava Finland is made at the time of completion.
| SEK M unless otherwise stated | 2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Return on capital employed, %1) | 16.6 | 14.6 |
| Interest coverage ratio, multiple1) | 8.3 | 5.4 |
| Equity/assets ratio, % | 33.7 | 33.7 |
| Interest bearing liabilities/total assets, % | 27.2 | 26.7 |
| Net debt | 4,165 | 3,699 |
| Net debt, excl. tenant-owner associations/housing companies | -168 | 75 |
| Debt/equity ratio, multiple | 0.6 | 0.7 |
| Debt/equity ratio excl. tenant-owner associations/housing companies, multiple | 0.0 | 0.0 |
| Capital employed at period-end | 12,003 | 10,134 |
| Average capital employed | 11,419 | 10,412 |
| Capital turnover rate, multiple1) | 1.3 | 1.3 |
| Share of risk-bearing capital, % | 33.8 | 33.8 |
| Dividend, SEK per share | 5.20 | 3.80 |
| Average interest rate at period-end, %2) | 2.86 | 3.75 |
| Average period of fixed interest, years2) | 0.2 | 0.3 |
| Average interest rate at period-end, %3) | 1.40 | 1.35 |
| Average period of fixed interest, years3) | 0.1 | 0.1 |
1) The figures are calculated on a rolling 12-month basis.
2) Excluding loans in Swedish tenant-owner associations and Finnish housing companies.
3) Loans in Swedish tenant-owner associations and Finnish housing companies.
Stockholm, Sweden, 2 February 2018
Joachim Hallengren President and CEO
This report has not been reviewed by the company's auditors.
For more information, please contact Ann-Sofi Danielsson, CFO, Investor Relations [email protected] Tel: +46 706 740 720
Ann-Sofi Danielsson, CFO and Investor Relations [email protected] Tel: +46 8 409 544 00 Tel: +46 706 740 720
Rasmus Blomqvist, Investor Relations [email protected] Tel: +46 737 739 845
This information is such that Bonava AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person above, on 2 February 2018 at 07.30 a.m. CET.
Joachim Hallengren, CEO and Ann-Sofi Danielsson, CFO, will present the Interim Report. The presentation will be concluded with a Q&A session.
Place: Lindhagensgatan 72, Stockholm, Sweden.
Time: 2 February 2018, 10.00–11.00 a.m. Registration and coffee from 09.30 a.m.
Please notify Bonava of your intention to attend at [email protected], or by phone on +46 (0) 737 739 845
To participate in the telephone conference and ask questions, please call one of the following telephone numbers:
SE: +46 8 519 993 55 DE: +49 211 971 90 086 UK: +44 203 194 05 50 US: +1 855 269 26 05
The presentation will also be streamed live at bonava.com/ investor-relations. The presentation will be available for download from the website, and it will be possible to view a video of the presentation after the event.
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