Bonava writes:

"The armed conflict in Ukraine is a humanitarian crisis that brings uncertainty to our business. We are carefully monitoring developments and the potential effects it might have on our company. This is too early to conclude but we want to increase our transparency regarding the St. Petersburg business given the current situation.

Our highest priority is to ensure the health and safety of our employees. Bonava has 370 colleagues in St. Petersburg. We are gathering all available facts to get an overview of this ever-changing situation, to make the best decisions for our people and our business. For the moment we do not see any specific effects in our other markets.

In 2021, net sales in St. Petersburg were SEK 745 M, corresponding to approximately 5 per cent of the Group’s net sales. St. Petersburg accounted for SEK 155 M of total EBIT in 2021. Units in production in St. Petersburg amounts to 810 units and our ongoing production is currently operating as usual. The majority of our units in production are already predominantly pre-paid and are planned to be handed over at the end of 2022 and the beginning of 2023. Bonava have no planned construction starts in the St. Petersburg business in the first quarter.

Short-term the announcement from the Russian central bank that they are increasing the repo rate to 20 per cent will have limited effect on Bonava. The domestic project financing will not be affected to a large extent since both the funding and the borrowing are based on the repo rate. The mid-and long-term effect of the increased repo rate is harder to assess right now. There are no intercompany loans from Sweden, so all debt financing is handled domestic with our partner banks, so we have no cross-country risk exposure. Our partner banks are today able to make payments. Bonava does not hedge any position in Rubel and hence the decline in Rubel has a negative translation effect on our figures. The Rubel exchange rate at the end of 28 February had a negative effect on our equity with minus SEK 129 M given the reported equity of SEK 666 M on 31 of December 2021. St. Petersburg’s share of total equity in the Group were 8 per cent.

Bonava has created neighbourhoods in St. Petersburg since 2006. The company builds homes for families with a desire to buy a sustainable home of good quality. In St. Petersburg, Bonava’s high standards of health and safety and the company's code of conduct, have contributed to changing the industry in a responsible direction. The company was the first player to pursue housing development based on a clear sustainability agenda."