Correction regarding impairment of goodwill and reporting of sale of subsidiaries and repurchase of bonds for the fourth quarter 2023
Samhällsbyggnadsbolaget i Norden AB (publ) ("SBB") published on 27 February 2024 the year-end report for 2023 in which errors have been identified in connection with the finalisation of the annual report for 2023. The errors are attributable to the human factor. SBB has produced a correction sheet for the year-end report for 2023 which is available on SBB's website. It should be read together with the year-end report published on 27 February 2024. The errors identified and corrected relate to the impairment test of goodwill, the reporting of sale of subsidiaries and the reporting of bond repurchases. This has effects on the items: Change in value of properties, Impairment of goodwill, Interest income and similar items, Results of early repayment of loans, Deferred tax and Profit for the year, discontinued operations.
The correction sheet concerns, among other things, that the item Impairment of goodwill has been adjusted from SEK -1,150 million to 0. The correction has a positive effect on the result for the corrected fourth quarter of 2023. The result for the year has been adjusted from SEK -22,740 million to SEK -21,590 million. The interest coverage ratio, continuing and discontinued operations, has been adjusted from 2.3 to 2.1. See table below for more information.
| 2023-01-01 – 2023-12-31 | |||
| Consolidated income statement (SEKm) | Year end report published 2024-02-27 |
Correction | After correction |
| Changes in value, property | -13,277 | -44 | -13,321 |
| Goodwill impairment | -1,150 | 1,150 | - |
| Operating profit | -12,430 | 1,106 | -11,324 |
| Interest income and similar items | 420 | -154 | 266 |
| Results of early repayment of loans | -118 | 154 | 36 |
| Profit before tax | -22,285 | 1,106 | -21,179 |
| Deferred tax | 2,013 | 555 | 2,569 |
| PROFIT FOR THE PERIOD, continuing operations | -20,488 | 1,661 | -18,827 |
| Profit for the period, discontinued operations | -2,251 | -511 | -2,763 |
| PROFIT FOR THE PERIOD | -22,740 | 1,150 | -21,590 |
| Consolidated balance sheet (SEKm) | |||
| Goodwill | 1,542 | 1,150 | 2,692 |
| Total fixed assets | 101,255 | 1,150 | 102,405 |
| TOTAL ASSETS | 106,957 | 1,150 | 108,107 |
| Retained earnings, incl. comprehensive income for the year | -9,117 | 1,150 | -7,967 |
| Equity attributable to Parent Company shareholders | 16,759 | 1,150 | 17,909 |
| Total equity | 35,981 | 1,150 | 37,131 |
| Key ratios | |||
| Return on equity | -46% | 3% | -43% |
| Non-pledged quota | 1.58 | 0.02 | 1.6 |
| EPRA earnings (company-specific), SEKm | -612 | -710 | -1,322 |
| EPRA earnings (EPS) (company-specific), SEK/share | -0.42 | -0.49 | -0.91 |
| EPRA earnings after dilution (EPS) (company specific), SEK/share | -0.42 | -0.49 | -0.91 |
| Adjusted equity/assets ratio | 36% | 1% | 37% |
| Long-term net asset value (EPRA NRV), mSEK | 17,873 | 1,015 | 18,888 |
| Long-term net asset value (EPRA NRV), SEK/share | 12.29 | 0.7 | 12.99 |
| Long-term net asset value (EPRA NRV) after dilution, SEK/share | 12.29 | 0.7 | 12.99 |
| Earnings per Class A and B ordinary share before dilution, continuing operations | -15.05 | 1.14 | -13.91 |
| Earnings per Class A and B ordinary share after dilution, continuing operations | -15.05 | 1.14 | -13.91 |
| Earnings per Class A and B ordinary share before dilution, discontinued operations | -2.51 | -0.35 | -2.86 |
| Earnings per Class A and B ordinary share after dilution, discontinued operations | -2.51 | -0.35 | -2.86 |
| Interest coverage ratio, continuing operations | 2.0 | -0.2 | 1.8 |
| Interest coverage ratio, continuing and discontinued operations | 2.3 | -0.2 | 2.1 |
The corrected consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity and consolidated cash flow statement are presented on the following pages.
Consolidated income statement
| Amounts in SEKm | 01-01-202331-12-2023 | 01-01-202231-12-2022 | 01-10-202331-12-2023 | 01-10-202231-12-2022 |
| Continuing operations | ||||
| Rental income | 4,581 | 5,365 | 1,069 | 1,309 |
| Property costs | ||||
| Operating costs | -1,021 | -1,309 | -256 | -378 |
| Maintenance | -257 | -314 | -81 | -108 |
| Property tax | -95 | -127 | -19 | -39 |
| Net operating income | 3,209 | 3,615 | 713 | 784 |
| Administration | -878 | -809 | -294 | -203 |
| Acquisition and restructuring costs | -90 | -120 | -51 | -24 |
| Profit before financial items, value changes in properties and goodwill | 2,241 | 2,686 | 368 | 557 |
| Changes in value, property | -13,321 | -3,681 | -2,828 | -2,490 |
| Capital loss on the distribution of Neobo | - | -3,202 | - | -3,202 |
| Reversal/impairment of goodwill regarding deferred tax | -227 | -387 | -26 | -195 |
| Goodwill impairment | - | -395 | - | -395 |
| Results, production of residentials | -17 | -17 | -14 | -20 |
| Operating profit | -11,324 | -4,997 | -2,499 | -5,745 |
| Profit/loss from joint ventures and associated companies | -6,017 | -1,866 | -1,655 | -1,379 |
| of which, profit from property management | 169 | 941 | -147 | 314 |
| of which, change in value | -2,498 | -1,970 | -1,607 | -1,002 |
| of which, tax | 196 | -90 | 154 | 57 |
| of which, gain/loss on sales | -3,416 | - | 24 | - |
| of which, impairment | -469 | -747 | -79 | -747 |
| Interest income and similar items | 266 | 238 | 88 | 58 |
| Interest expenses and similar items | -1,406 | -1,054 | -430 | -399 |
| Results of early repayment of loans | 36 | 424 | 149 | 429 |
| Translation gains/losses | -144 | -1,991 | 1,024 | -580 |
| Leasing costs | -10 | -19 | -4 | -5 |
| Changes in the value of financial instruments | -2,580 | -1,560 | -495 | -405 |
| Profit before tax | -21,179 | -10,825 | -3,822 | -8,025 |
| Tax for the year | -443 | -277 | 39 | -70 |
| Deferred tax | 2,569 | 354 | 468 | 502 |
| Reversal of deferred tax regarding business combinations | 227 | 387 | 26 | 195 |
| PROFIT FOR THE PERIOD, continuing operations | -18,827 | -10,361 | -3,290 | -7,397 |
| Profit for the period, discontinued operations | -2,763 | 550 | 260 | -553 |
| PROFIT FOR THE PERIOD | -21,590 | -9,811 | -3,031 | -7,950 |
| Profit for the period attributable to: | ||||
| Parent Company shareholders | -22,054 | -9,634 | -3,063 | -7,905 |
| Non-controlling interest | 464 | -177 | 32 | -45 |
| PROFIT FOR THE PERIOD | -21,590 | -9,811 | -3,031 | -7,950 |
Consolidated statement of comprehensive income
| Amounts in SEKm | 01-01-202331-12-2023 | 01-01-202231-12-2022 | 01-10-202331-12-2023 | 01-10-202231-12-2022 |
| Profit for the period | -21,590 | -9,811 | -3,031 | -7,950 |
| Share in the comprehensive income of joint ventures and associated companies | -175 | 169 | - | 99 |
| Translation gains/losses | -1,057 | 427 | -368 | 252 |
| COMPREHENSIVE INCOME FOR THE PERIOD | -22,822 | -9,215 | -3,399 | -7,599 |
| Comprehensive income for the period attributable to: | ||||
| Parent Company shareholders | -23,286 | -9,038 | -3,431 | -7,553 |
| Non-controlling interest | 464 | -177 | 32 | -46 |
| COMPREHENSIVE INCOME FOR THE PERIOD | -22,822 | -9,215 | -3,399 | -7,599 |
| Earnings per Class A and B ordinary share before dilution, continuing operations | -13.91 | -7.61 | -2.44 | -5.20 |
| Earnings per Class A and B ordinary share after dilution, continuing operations | -13.91 | -7.61 | -2.44 | -5.20 |
| Earnings per Class D ordinary share, continuing operations | 2.00 | 2.00 | 0.50 | 0.50 |
| Earnings per Class A and B ordinary share before dilution, discontinued operations | -2.86 | -0.10 | 0.00 | -0.49 |
| Earnings per Class A and B ordinary share after dilution, discontinued operations | -2.86 | -0.10 | 0.00 | -0.49 |
| Earnings per Class D ordinary share, discontinued operations | 2.00 | 2.00 | 0.50 | 0.50 |
| Earnings per Class A and B ordinary share before dilution, total continuing and discontinued operations | -15.81 | -7.23 | -2.26 | -5.58 |
| Earnings per Class A and B ordinary share after dilution, total continuing and discontinued operations | -15.81 | -7.23 | -2.26 | -5.58 |
| Earnings per Class D ordinary share, total continuing and discontinued operations | 2.00 | 2.00 | 0.50 | 0.50 |
Consolidated balance sheet
| Amounts in SEKm | 31-12-2023 | 31-12-2022 | Amounts in SEKm | 31-12-2023 | 31-12-2022 | ||||
| ASSETS | EQUITY AND LIABILITIES | ||||||||
| Fixed assets | Share capital | 165 | 165 | ||||||
| Intangible assets | Other contributed capital | 26,624 | 26,612 | ||||||
| Goodwill | 2,692 | 5,283 | Reserves | -915 | 142 | ||||
| Total intangible assets | 2,692 | 5,283 | Retained earnings, incl. comprehensive income for the year | -7,967 | 16,905 | ||||
| Equity attributable to Parent Company shareholders | 17,909 | 43,825 | |||||||
| Tangible assets | |||||||||
| Investment properties | 73,205 | 135,616 | Hybrid bonds | 15,741 | 15,741 | ||||
| Land lease agreements | 393 | 829 | Other reserves | 1,036 | 1,080 | ||||
| Equipment, machinery and installations | 106 | 37 | Non-controlling interest | 2,445 | 2,691 | ||||
| Total tangible assets | 73,704 | 136,482 | Total equity | 37,131 | 63,337 | ||||
| Financial fixed assets | Long-term liabilities | ||||||||
| Share in joint ventures and associated companies | 17,876 | 12,649 | Liabilities to credit institutions | 11,116 | 30,496 | ||||
| Receivables from joint ventures and associated companies | 4,839 | 1,737 | Bond loans | 40,540 | 48,310 | ||||
| Derivatives | 481 | 1,696 | Derivatives | 264 | 375 | ||||
| Financial fixed assets at fair value | 849 | 2,298 | Deferred tax liabilities | 2,726 | 9,120 | ||||
| Other non-current receivables | 1,965 | 939 | Leasing liabilities | 393 | 829 | ||||
| Total financial fixed asset | 26,009 | 19,319 | Other non-current liabilities | 92 | 141 | ||||
| Total fixed assets | 102,405 | 161,084 | Total long-term liabilities | 55,131 | 89,271 | ||||
| Current assets | Current liabilities | ||||||||
| Properties held for sale | 155 | 156 | Liabilities to credit institutions | 7,861 | 3,400 | ||||
| Commercial papers | - | 1,111 | |||||||
| Current receivables | Bond loans | 2,576 | 3,768 | ||||||
| Derivatives | 203 | - | Derivatives | 1,290 | 596 | ||||
| Financial fixed assets at fair value | 185 | - | Accounts payable | 121 | 456 | ||||
| Accounts receivable | 100 | 106 | Current tax liabilities | 99 | 310 | ||||
| Other receivables | 607 | 1,434 | Liability, cash collateral | - | 2,178 | ||||
| Prepaid expenses and accrued income | 392 | 740 | Other liabilities | 726 | 1,185 | ||||
| Total current receivables | 1,487 | 2,280 | Approved dividend | 2,133 | 834 | ||||
| Accrued expenses and prepaid income | 1,040 | 1,924 | |||||||
| Cash investments | 3,845 | 4,429 | Total current liabilities | 15,845 | 15,762 | ||||
| Cash and cash equivalents | 214 | 421 | TOTAL EQUITY AND LIABILITIES | 108,107 | 168,370 | ||||
| Total cash and cash equivalents and cash investments | 4,060 | 4,850 | |||||||
| Total current assets | 5,702 | 7,286 | |||||||
| TOTAL ASSETS | 108,107 | 168,370 | |||||||
Consolidated changes in equity
| Equity attributable to Parent Company’s shareholders | Equity attributable to hybrid bonds | Holdings without controlling influence | Total equity | |||||||
| Amounts in SEKm | Share capital | Other contributed capital | Reserves | Retained earnings | Total | Hybrid-bond | Other reserves | |||
| Opening equity, 1 Jan 2022 | 165 | 26,396 | 834 | 34,360 | 61,755 | 17,294 | -149 | 4,071 | 82,971 | |
| Profit for the period | - | - | - | -9,633 | -9,633 | - | - | -177 | -9,811 | |
| Other comprehensive income | - | - | -692 | 1,288 | 596 | - | - | - | 596 | |
| Comprehensive income for the period | - | - | -692 | -8,345 | -9,037 | - | - | -177 | -9,215 | |
| New share issue | - | 210 | - | - | 210 | - | - | - | 210 | |
| Issue costs | - | - | - | -13 | -13 | - | - | - | -13 | |
| Redemption of part of hybrid bond | - | - | - | 811 | 811 | -1,553 | 15 | - | -727 | |
| Tax effects in equity | - | - | - | -1,214 | -1,214 | - | 1,214 | - | - | |
| Currency revaluation, hybrid bonds | - | 6 | - | 175 | 181 | - | - | - | 181 | |
| Dividend | - | - | - | -2,308 | -2,308 | - | - | - | -2,308 | |
| Dividend hybrid bond | - | - | - | -490 | -490 | - | - | - | -490 | |
| Distribution of Neobo | - | - | - | -5,946 | -5,946 | - | - | - | -5,946 | |
| Divestiture to minority | - | - | - | - | - | - | - | 712 | 712 | |
| Redemption minority interests | - | - | - | -124 | -124 | - | - | -1,915 | -2,039 | |
| Closing equity, 31 Dec 2022 | 165 | 26,612 | 142 | 16,905 | 43,825 | 15,741 | 1,080 | 2,691 | 63,337 | |
| Opening equity, 1 Jan 2023 | 165 | 26,612 | 142 | 16,905 | 43,825 | 15,741 | 1,080 | 2,691 | 63,337 | |
| Profit for the period | - | - | - | -22,054 | -22,054 | - | - | 464 | -21,590 | |
| Other comprehensive income | - | - | -1,057 | -175 | -1,232 | - | - | - | -1,232 | |
| Comprehensive income for the period | - | - | -1,057 | -22,229 | -23,286 | - | - | 464 | -22,822 | |
| Warrants repurchase | - | - | - | -5 | -5 | - | - | - | -5 | |
| Tax effects in equity | - | 12 | - | -11 | 1 | - | - | - | 1 | |
| Conversion of mandatory convertibles | - | - | - | 44 | 44 | - | -44 | - | - | |
| Currency revaluation, hybrid bonds | - | - | - | 99 | 99 | - | - | - | 99 | |
| Dividend | - | - | - | -2,482 | -2,482 | - | - | - | -2,482 | |
| Dividend hybrid bond | - | - | - | -548 | -548 | - | - | - | -548 | |
| Interest withheld on hybrid bonds | - | - | - | 358 | 358 | - | - | - | 358 | |
| Acquired minority interests | - | - | - | - | - | - | - | 9,840 | 9,840 | |
| Redemption minority holdings | - | - | - | -98 | -98 | - | - | -10,552 | -10,648 | |
| Closing equity, 31 Dec 2023 | 165 | 26,624 | -915 | -7,967 | 17,909 | 15,741 | 1,036 | 2,445 | 37,131 | |
Consolidated cash flow statement, condensed
| Amounts in SEKm | 01-01-202331-12-2023 | 01-01-202231-12-2022 | 01-10-202331-12-2023 | 01-10-202231-12-2022 |
| Operating activities | ||||
| Profit before tax, continuing operations | -21,179 | -10,825 | -3,822 | -8,023 |
| Profit before tax, discontinued operations | -6,090 | 276 | -2,268 | -827 |
| Adjustment for non-cash flow items | ||||
| Depreciation | 6 | 10 | - | 2 |
| Changes in value, property | 18,051 | 4,571 | 5,281 | 3,590 |
| Capital loss on the distribution of Neobo | - | 3,202 | - | 3,202 |
| Dissolution of goodwill after property sales | 797 | 387 | 26 | 195 |
| Goodwill impairment | 1,794 | 395 | - | 395 |
| Results, production of residentials | 17 | 17 | 14 | 19 |
| Profit from joint ventures and associated companies | 6,017 | 1,866 | 1,655 | 1,379 |
| Changes in the value of financial instruments | 2,580 | 1,560 | 495 | 405 |
| Dividends from joint ventures and associated companies | 283 | 304 | - | 7 |
| Net interest income | 1,818 | 2,878 | -747 | 634 |
| Interest paid | -2,236 | -1,059 | -803 | -153 |
| Interest received | 220 | 196 | 136 | 58 |
| Paid tax | -856 | -294 | -241 | -80 |
| Cash flow from operating activities before changes in working capital | 1,222 | 3,485 | -276 | 802 |
| Cash flow from changes in working capital | ||||
| Increase (-)/Decrease (+) of operating receivables | 1,057 | 164 | 944 | 533 |
| Increase (+)/Decrease (-) of operating liabilities | -929 | -1,529 | -153 | -53 |
| Cash flow from operating activities | 1,350 | 2,120 | 514 | 1,283 |
| Investment activities | ||||
| Investments in properties | -2,901 | -5,250 | -524 | -1,280 |
| Property sales | - | 171 | - | 18 |
| Acquisitions of subsidiaries less acquired cash and cash equivalents | -1,629 | -9,367 | -507 | -364 |
| Disposals of subsidiaries less cash and cash equivalents | 12,675 | 9,677 | 8,219 | 1,409 |
| Investments/divestitures in equipment, machinery and installations | -75 | 1 | -3 | 7 |
| Investments/disposals in joint ventures and associated companies | 2,470 | 475 | 193 | 1,896 |
| Change in receivables from joint ventures and associated companies | 781 | 2,159 | 790 | 154 |
| Cash flow from financial assets | -194 | 1,772 | 320 | 203 |
| Change in other non-current receivables | -998 | -728 | -41 | -863 |
| Cash flow from investing activities | 10,129 | -1,090 | 7,767 | 1,181 |
| Financing activities | ||||
| Issue hybrid bonds | - | - | - | 10 |
| Issue costs | - | -15 | - | -15 |
| Warrants repurchase | -5 | - | -1 | - |
| Redemption of hybrid bonds | - | -727 | - | -727 |
| Redemption of mandatory convertible | 1 | - | - | - |
| Dividend paid | -1,659 | -2,837 | - | -601 |
| Distribution of cash and cash equivalents in Neobo | - | -231 | - | -231 |
| Divestiture to minority | 9,057 | 712 | 19 | 712 |
| Redeemed minority shares | - | -2,040 | - | -223 |
| Borrowings | 21,544 | 62,038 | 394 | 19,459 |
| Repayment of loans | -38,885 | -59,710 | -6,326 | -21,243 |
| Change in cash collateral | -2,048 | -3,429 | -617 | 5 |
| Changes in other non-current liabilities raised | -52 | -202 | -77 | -90 |
| Cash flow from financing activities | -12,047 | -6,440 | -6,609 | -2,943 |
| Profit/loss for the period | -568 | -5,410 | 1,673 | -479 |
| Cash and cash equivalents at the beginning of the period | 4,429 | 9,837 | 2,186 | 4,941 |
| Profit/loss for the period, continuing operations | -568 | -5,410 | 1,673 | -479 |
| Exchange rate change in cash and cash equivalents | -16 | 2 | -14 | -35 |
| Cash and cash equivalents at the end of the period | 3,845 | 4,429 | 3,845 | 4,429 |
| of which, liquid funds attributable to discontinued operations | - | 57 | - | 57 |
For further information, please contact:
Helena Lindahl, Treasury Director, [email protected], [email protected]
This information is such that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted by the above contact persons for publication on 30 April 2024 kl. 15:30 CEST.
Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region’s leading property company in social infrastructure. The Company’s strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB’s commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. Further information about SBB is available at www.sbbnorden.se.