Samhällsbyggnadsbolaget i Norden AB: Correction regarding impairment of goodwill and reporting of sale of subsidiaries and repurchase of bonds for the fourth quarter 2023

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 Correction After
report correction
published
2024-02-27
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 -20,488 1,661 -18,827
operations

Profit for the period, discontinued -2,251 -511 -2,763
operations
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 -9,117 1,150 -7,967
income for the year
Equity attributable to Parent Company 16,759 1,150 17,909
shareholders
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), -0.42 -0.49 -0.91
SEK/share
EPRA earnings after dilution (EPS) -0.42 -0.49 -0.91
(company specific), SEK/share
Adjusted equity/assets ratio 36% 1% 37%
Long-term net asset value (EPRA NRV), 17,873 1,015 18,888
mSEK
Long-term net asset value (EPRA NRV), 12.29 0.7 12.99
SEK/share
Long-term net asset value (EPRA NRV) 12.29 0.7 12.99
after dilution, SEK/share
Earnings per Class A and B ordinary share -15.05 1.14 -13.91
before dilution, continuing operations
Earnings per Class A and B ordinary share -15.05 1.14 -13.91
after dilution, continuing operations
Earnings per Class A and B ordinary share -2.51 -0.35 -2.86
before dilution, discontinued operations
Earnings per Class A and B ordinary share -2.51 -0.35 -2.86
after dilution, discontinued operations
Interest coverage ratio, continuing 2.0 -0.2 1.8
operations
Interest coverage ratio, continuing and 2.3 -0.2 2.1
discontinued operations

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 01-01 01-10 01-10
-202331-12 -202231-12 -202331-12 -202231-12
-2023 -2022 -2023 -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 3,209 3,615 713 784
income

Administration -878 -809 -294 -203
Acquisition and -90 -120 -51 -24
restructuring
costs
Profit before 2,241 2,686 368 557
financial items,
value changes in
properties and
goodwill

Changes in value, -13,321 -3,681 -2,828 -2,490
property
Capital loss on - -3,202 - -3,202
the distribution
of
Neobo
Reversal/impairmen -227 -387 -26 -195
t of goodwill
regarding
deferred tax
Goodwill - -395 - -395
impairment
Results, -17 -17 -14 -20
production of
residentials
Operating profit -11,324 -4,997 -2,499 -5,745

Profit/loss from -6,017 -1,866 -1,655 -1,379
joint ventures
and
associated
companies
     of which, 169 941 -147 314
profit from
property
management
     of which, -2,498 -1,970 -1,607 -1,002
change in value
     of which, 196 -90 154 57
tax
     of which, -3,416 - 24 -
gain/loss on
sales
     of which, -469 -747 -79 -747
impairment
Interest income 266 238 88 58
and similar items
Interest expenses -1,406 -1,054 -430 -399
and similar items
Results of early 36 424 149 429
repayment of
loans
Translation -144 -1,991 1,024 -580
gains/losses
Leasing costs -10 -19 -4 -5
Changes in the -2,580 -1,560 -495 -405
value of
financial
instruments
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 227 387 26 195
deferred tax
regarding
business
combinations
PROFIT FOR THE -18,827 -10,361 -3,290 -7,397
PERIOD,
continuing
operations

Profit for the -2,763 550 260 -553
period,
discontinued
operations
PROFIT FOR THE -21,590 -9,811 -3,031 -7,950
PERIOD

Profit for the
period
attributable
to:
Parent Company -22,054 -9,634 -3,063 -7,905
shareholders
Non-controlling 464 -177 32 -45
interest
PROFIT FOR THE -21,590 -9,811 -3,031 -7,950
PERIOD

Consolidated statement of comprehensive income

Amounts in 01-01 01-01 01-10 01-10-202231-12-2022
SEKm -202331-12 -202231-12 -202331-12
-2023 -2022 -2023
Profit for -21,590 -9,811 -3,031 -7,950
the period
Share in the -175 169 - 99
comprehensive
income of
joint
ventures and
associated
companies
Translation -1,057 427 -368 252
gains/losses
COMPREHENSIVE -22,822 -9,215 -3,399 -7,599
INCOME FOR
THE PERIOD

Comprehensive
income for
the period
attributable
to:
Parent -23,286 -9,038 -3,431 -7,553
Company
shareholders
Non 464 -177 32 -46
-controlling
interest
COMPREHENSIVE -22,822 -9,215 -3,399 -7,599
INCOME FOR
THE PERIOD

Earnings per -13.91 -7.61 -2.44 -5.20
Class A and B
ordinary
share before
dilution,
continuing
operations
Earnings per -13.91 -7.61 -2.44 -5.20
Class A and B
ordinary
share after
dilution,
continuing
operations
Earnings per 2.00 2.00 0.50 0.50
Class D
ordinary
share,
continuing
operations

Earnings per -2.86 -0.10 0.00 -0.49
Class A and B
ordinary
share before
dilution,
discontinued
operations
Earnings per -2.86 -0.10 0.00 -0.49
Class A and B
ordinary
share after
dilution,
discontinued
operations
Earnings per 2.00 2.00 0.50 0.50
Class D
ordinary
share,
discontinued
operations

Earnings per -15.81 -7.23 -2.26 -5.58
Class A and B
ordinary
share before
dilution,
total
continuing
and
discontinued
operations
Earnings per -15.81 -7.23 -2.26 -5.58
Class A and B
ordinary
share after
dilution,
total
continuing
and
discontinued
operations
Earnings per 2.00 2.00 0.50 0.50
Class D
ordinary
share, total
continuing
and
discontinued
operations

Consolidated balance sheet

Amounts in 31-12 31-12 Amounts in 31-12 31-12
SEKm -2023 -2022 SEKm -2023 -2022
ASSETS EQUITY AND
LIABILITIES
Fixed assets Share capital 165 165
Intangible Other 26,624 26,612
assets contributed
capital
Goodwill 2,692 5,283 Reserves -915 142
Total 2,692 5,283 Retained -7,967 16,905
intangible earnings,
assets incl.
comprehensive
income for the
year
Equity 17,909 43,825
attributable
to Parent
Company
shareholders
Tangible
assets
Investment 73,205 135,616 Hybrid bonds 15,741 15,741
properties
Land lease 393 829 Other reserves 1,036 1,080
agreements
Equipment, 106 37 Non 2,445 2,691
machinery and -controlling
installations interest
Total tangible 73,704 136,482 Total equity 37,131 63,337
assets

Financial Long-term
fixed assets liabilities
Share in joint 17,876 12,649 Liabilities to 11,116 30,496
ventures and credit
associated institutions
companies
Receivables 4,839 1,737 Bond loans 40,540 48,310
from joint
ventures and
associated
companies
Derivatives 481 1,696 Derivatives 264 375
Financial 849 2,298 Deferred tax 2,726 9,120
fixed assets liabilities
at
fair value
Other non 1,965 939 Leasing 393 829
-current liabilities
receivables
Total 26,009 19,319 Other non 92 141
financial -current
fixed asset liabilities
Total fixed 102,405 161,084 Total long 55,131 89,271
assets -term
liabilities

Current assets Current
liabilities
Properties 155 156 Liabilities to 7,861 3,400
held for sale credit
institutions
Commercial - 1,111
papers
Current Bond loans 2,576 3,768
receivables
Derivatives 203 - Derivatives 1,290 596
Financial 185 - Accounts 121 456
fixed assets payable
at
fair value
Accounts 100 106 Current tax 99 310
receivable liabilities
Other 607 1,434 Liability, - 2,178
receivables cash
collateral
Prepaid 392 740 Other 726 1,185
expenses and liabilities
accrued
income
Total current 1,487 2,280 Approved 2,133 834
receivables dividend
Accrued 1,040 1,924
expenses and
prepaid
income
Cash 3,845 4,429 Total current 15,845 15,762
investments liabilities
Cash and cash 214 421 TOTAL EQUITY 108,107 168,370
equivalents AND
LIABILITIES
Total cash and 4,060 4,850
cash
equivalents
and cash
investments

Total current 5,702 7,286
assets
TOTAL ASSETS 108,107 168,370

Consolidated changes in equity

Equity Equity Holdings Total
attributable attributable without equity
to Parent to hybrid controlling
Company's bonds influence
shareholders
Amounts in Share Other Reserves Retained Total Hybrid-bond Other
SEKm capital contributed earnings reserves
capital
Opening 165 26,396 834 34,360 61,755 17,294 -149 4,071 82,971
equity, 1
Jan 2022

Profit for - - - -9,633 -9,633 - - -177 -9,811
the
period
Other - - -692 1,288 596 - - - 596
comprehensive
income
Comprehensive - - -692 -8,345 -9,037 - - -177 -9,215
income for
the
period
New share - 210 - - 210 - - - 210
issue
Issue costs - - - -13 -13 - - - -13
Redemption of - - - 811 811 -1,553 15 - -727
part
of hybrid
bond
Tax effects - - - -1,214 -1,214 - 1,214 - -
in
equity
Currency - 6 - 175 181 - - - 181
revaluation,
hybrid bonds
Dividend - - - -2,308 -2,308 - - - -2,308
Dividend - - - -490 -490 - - - -490
hybrid
bond
Distribution - - - -5,946 -5,946 - - - -5,946
of
Neobo
Divestiture - - - - - - - 712 712
to
minority
Redemption - - - -124 -124 - - -1,915 -2,039
minority
interests
Closing 165 26,612 142 16,905 43,825 15,741 1,080 2,691 63,337
equity, 31
Dec 2022

Opening 165 26,612 142 16,905 43,825 15,741 1,080 2,691 63,337
equity, 1
Jan 2023

Profit for - - - -22,054 -22,054 - - 464 -21,590
the
period
Other - - -1,057 -175 -1,232 - - - -1,232
comprehensive
income
Comprehensive - - -1,057 -22,229 -23,286 - - 464 -22,822
income for
the
period
Warrants - - - -5 -5 - - - -5
repurchase
Tax effects - 12 - -11 1 - - - 1
in
equity
Conversion of - - - 44 44 - -44 - -
mandatory
convertibles
Currency - - - 99 99 - - - 99
revaluation,
hybrid bonds
Dividend - - - -2,482 -2,482 - - - -2,482
Dividend - - - -548 -548 - - - -548
hybrid
bond
Interest - - - 358 358 - - - 358
withheld
on hybrid
bonds
Acquired - - - - - - - 9,840 9,840
minority
interests
Redemption - - - -98 -98 - - -10,552 -10,648
minority
holdings
Closing 165 26,624 -915 -7,967 17,909 15,741 1,036 2,445 37,131
equity, 31
Dec 2023

Consolidated cash flow statement, condensed

Amounts in SEKm 01-01 01-01 01-10 01-10
-202331-12 -202231-12 -202331-12 -202231-12
-2023 -2022 -2023 -2022
Operating
activities
Profit before -21,179 -10,825 -3,822 -8,023
tax, continuing
operations
Profit before -6,090 276 -2,268 -827
tax, discontinued
operations
Adjustment for
non-cash flow
items
    Depreciation 6 10 - 2
    Changes in 18,051 4,571 5,281 3,590
value, property
    Capital loss - 3,202 - 3,202
on the
distribution of
Neobo
    Dissolution 797 387 26 195
of goodwill after
property sales
    Goodwill 1,794 395 - 395
impairment
    Results, 17 17 14 19
production of
residentials
    Profit from 6,017 1,866 1,655 1,379
joint ventures
and
associated
companies
    Changes in 2,580 1,560 495 405
the value of
financial
instruments
Dividends from 283 304 - 7
joint ventures
and
associated
companies
Net interest 1,818 2,878 -747 634
income
Interest paid -2,236 -1,059 -803 -153
Interest received 220 196 136 58
Paid tax -856 -294 -241 -80
Cash flow from 1,222 3,485 -276 802
operating
activities before
changes in
working capital

Cash flow from
changes in
working
capital
Increase ( 1,057 164 944 533
-)/Decrease (+)
of
operating
receivables
Increase -929 -1,529 -153 -53
(+)/Decrease (-)
of
operating
liabilities
Cash flow from 1,350 2,120 514 1,283
operating
activities

Investment
activities
Investments in -2,901 -5,250 -524 -1,280
properties
Property sales - 171 - 18
Acquisitions of -1,629 -9,367 -507 -364
subsidiaries less
acquired cash and
cash equivalents
Disposals of 12,675 9,677 8,219 1,409
subsidiaries less
cash and cash
equivalents
Investments/divest -75 1 -3 7
itures in
equipment,
machinery and
installations
Investments/dispos 2,470 475 193 1,896
als in joint
ventures and
associated
companies
Change in 781 2,159 790 154
receivables from
joint
ventures and
associated
companies
Cash flow from -194 1,772 320 203
financial assets
Change in other -998 -728 -41 -863
non-current
receivables
Cash flow from 10,129 -1,090 7,767 1,181
investing
activities

Financing
activities
Issue hybrid - - - 10
bonds
Issue costs - -15 - -15
Warrants -5 - -1 -
repurchase
Redemption of - -727 - -727
hybrid bonds
Redemption of 1 - - -
mandatory
convertible
Dividend paid -1,659 -2,837 - -601
Distribution of - -231 - -231
cash and cash
equivalents in
Neobo
Divestiture to 9,057 712 19 712
minority
Redeemed minority - -2,040 - -223
shares
Borrowings 21,544 62,038 394 19,459
Repayment of -38,885 -59,710 -6,326 -21,243
loans
Change in cash -2,048 -3,429 -617 5
collateral
Changes in other -52 -202 -77 -90
non-current
liabilities
raised
Cash flow from -12,047 -6,440 -6,609 -2,943
financing
activities

Profit/loss for -568 -5,410 1,673 -479
the period

Cash and cash 4,429 9,837 2,186 4,941
equivalents at
the
beginning of the
period
Profit/loss for -568 -5,410 1,673 -479
the period,
continuing
operations
Exchange rate -16 2 -14 -35
change in cash
and
cash equivalents
Cash and cash 3,845 4,429 3,845 4,429
equivalents at
the
end of the period
of which, liquid - 57 - 57
funds
attributable to
discontinued
operations

For further information, please contact:
Helena Lindahl, Treasury Director, ir@sbbnorden.se, press@sbbnorden.se

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.