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Three Month Report 2013 James B. Hunt Jr. Library, North Carolina, U.S.

Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

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Page 1: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Three Month Report 2013

James B. Hunt Jr. Library, North Carolina, U.S.

Page 2: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Three Month Report 2013

− Stable Q1

− Solid U.S. results

− Construction in Norway and Finland continue to improve

− Strong but highly competitive market in the U.S.

− Substantial improvement of the RD business

May 7, 2013 Skanska Three Month Report 2013 2

Page 3: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Construction

− Revenue SEK 26.7 bn (26.2)

− Operating income in Construction SEK 0.5 bn (0.3)

− Winter impacts especially Poland, Czech Republic and the Nordics

− Order bookings SEK 24.3 bn (25.1) − Up in the Nordics − Down in the U.S.

May 7, 2013 Skanska Three Month Report 2013 3

Eastern bypass, Katrineholm, Sweden

Page 4: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Longfellow Bridge, Boston, Massachusetts, U.S. 4

Building, U.S. 1,400

Innovation park, Norway 820

Shopping centre, Finland 754

Longfellow Bridge, U.S. 573

Station, Cross Rail, UK 554

E6 highway, Sweden 453

Cancellation, Latin America -482

May 7, 2013 Skanska Three Month Report 2013 4

New orders in Construction in Q1 SEK M

Page 5: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Park Ostrobramska, Warsaw, Poland

Residential Development

− Revenue SEK 2.6 bn (1.7) − 964 (648) homes sold − 800 (480) homes started − Project starts and sales will

vary between the quarters

− Operating income SEK 152 M (-22)

− Restructuring process of the Nordics − Improved risk management − Enhanced efficiency of

production and land bank

May 7, 2013 Skanska Three Month Report 2013 5

Page 6: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Green Corner, Warsaw, Poland

Commercial Property Development

− Transactions − Divestments of SEK 157 M (133) − Income from divestments

SEK 35 M (51)

− 3 project starts

− 27 ongoing projects − SEK 8.3 bn in investment value − 63% pre-leasing rate

− 15,000 sq m leased in Q1

May 7, 2013 Skanska Three Month Report 2013 6

Page 7: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

The Royal London Hospital, UK

Infrastructure Development

− Net present value of SEK 4.5 bn in project portfolio

− Divestments of 5 projects (in Q2)

May 7, 2013 Skanska Three Month Report 2013 7

Page 8: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Construction Order situation

May 7, 2013 Skanska Three Month Report 2013 8

SEK bn

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Revenue 26.7 26.2 124.5 Order bookings 24.3 25.1 120.1 Order backlog 142.0 152.9 146.7 Book-to-build ratio, % 91 96 96

0

25

50

75

100

125

150

175

Q2 Q3 Q4 Q1 09

Q2 Q3 Q4 Q1 10

Q2 Q3 Q4 Q1 11

Q2 Q3 Q4 Q1 12

Q2 Q3 Q4 Q1 13

SEK bn

Order backlog

Order bookings, R-12

Revenue, R-12

Order bookings per quarter

R-12 Book-to-build 95%

Page 9: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Construction Order bookings

SEK bn

Jan–Mar 2013

Jan–Mar 2012

Change in local

currency, %

Book- to-build, R-12, %

Sweden 6.6 6.0 11 93 Norway 3.5 2.2 68 82 Finland 1.8 1.1 63 100 Poland 1.7 1.2 50 94 Czech Republic 0.4 0.9 -57 61 UK 1.7 1.8 0 93 USA Building 4.8 6.8 -26 92 USA Civil 2.1 2.4 -9 137 Latin America 1.4 2.9 -47 92 Other 0.3 – – – Total 24.3 25.1 -1 95

May 7, 2013 Skanska Three Month Report 2013 9

Page 10: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Construction Income statement

May 7, 2013 Skanska Three Month Report 2013 10

SEK bn Jan–Mar

2013 Jan–Mar

2012 Jan–Dec

2012 Revenue 26.7 26.2 124.5 Gross income 1.9 1.8 9.6 Selling and admin. expenses -1.4 -1.5 -6.2 Operating income 0.5 0.3 3.5 Gross margin, % 7.2 7.0 7.7 Selling and admin. expenses, % -5.3 -5.8 -5.0 Operating margin, % 1.9 1.2 2.8

0

40

80

120

160

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

Revenue

Operating margin

Revenue, R-12, SEK bn Operating margin, R-12, %

Page 11: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Construction Income statement

May 7, 2013 Skanska Three Month Report 2013 11

Operating income, SEK M Operating margin, % Jan–Mar

2013 Jan–Mar

2012 Jan–Mar

2013 Jan–Mar

2012

Sweden 82 168 1.4 2.8

Norway 66 5 1.9 0.1 Finland 23 -15 2.0 neg Poland -24 -32 neg neg Czech Republic -63 -90 neg neg UK 79 92 3.1 3.3 USA Building 106 87 1.5 1.5 USA Civil 239 188 7.7 6.5 Latin America 10 -80 0.5 neg Other – – – – Total 518 323 1.9 1.2

Page 12: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Residential Development Income statement, segment reporting

May 7, 2013 Skanska Three Month Report 2013 12

SEK M

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Revenue 2,605 1,659 8,682 Gross income 276 162 706 Selling and admin. expenses -132 -184 -823 Income from joint ventures 8 0 3 Operating income 152 -22 -114 Gross margin, % 10.6 9.8 8.1 Selling and admin. expenses, % -5.1 -11.1 -9.5 Operating margin, % 5.8 neg neg

0 2 4 6 8 10 12

-15.0

-10.0

-5.0

0.0

5.0

10.0

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

Revenue

Operating margin

Revenue, R-12, SEK bn Operating margin, R-12, %

Page 13: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Residential Development Income statement

May 7, 2013 Skanska Three Month Report 2013 13

Operating income, SEK M1 Operating margin, %1

Jan–Mar 2013

Jan–Mar 2012

Jan–Mar 2013

Jan–Mar 2012

Sweden 77 -71 7.5 neg Norway 36 43 6.0 7.3 Finland 47 21 5.8 4.5 Nordics 160 -7 6.5 neg

Other European countries2 -8 -15 neg neg Total 152 -22 5.8 neg

1 Development gain only, construction margin reported under Construction 2 Czech Republic, Poland and the UK

Page 14: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Residential Development Homes sold and started

May 7, 2013 Skanska Three Month Report 2013 14

Homes started Homes sold Jan–Mar

2013 Jan–Mar

2012 Jan–Dec

2012 Jan–Mar

2013 Jan–Mar

2012 Jan–Dec

2012

800 480 2,993 964 648 3,060

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q2 Q3 Q4 Q1 2009

Q2 Q3 Q4 Q1 2010

Q2 Q3 Q4 Q1 2011

Q2 Q3 Q4 Q1 2012

Q2 Q3 Q4 Q1 2013

Homes

Sold, R-12

Started, R-12

Page 15: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Residential Development In production status

May 7, 2013 Skanska Three Month Report 2013 15

Homes in production Of which sold, % Unsold

completed homes Mar 31, 2013 Dec 31, 2012 Mar 31, 2013 Dec 31, 2012 Mar 31, 2013 Dec 31, 2012

4,888 4,890 62 60 367 435

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q2 Q3 Q4 Q1 2009

Q2 Q3 Q4 Q1 2010

Q2 Q3 Q4 Q1 2011

Q2 Q3 Q4 Q1 2012

Q2 Q3 Q4 Q1 2013

Homes

Unsold Completed

Unsold under construction

Sold under construction

Page 16: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Commercial Property Development Income statement, segment reporting

May 7, 2013 Skanska Three Month Report 2013 16

SEK M

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Revenue 271 243 6,742 Gross income 91 109 1,923 Selling and administrative expenses -128 -111 -488 Income from joint ventures and associated companies 7 3 13 Operating income -30 1 1,448 of which gain from divestments of properties1 35 51 1,693

1 Additional gain included in eliminations was 4 0 107

Development gain only, construction margin reported under Construction

Page 17: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Commercial Property Development Property divestments

May 7, 2013 Skanska Three Month Report 2013 17

0

1

2

3

4

5

6

7

8

9

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

Revenue from divestments, R-12

Operating income from divestments, R-12

SEK bn

Page 18: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Commercial Property Development Carrying amounts and market values

May 7, 2013 Skanska Three Month Report 2013 18

SEK bn

Carrying amount, end of period

Carrying amount, upon completion

Market value

Occupancy rate, %

Degree of completion%

Completed projects 3.3 3.3 4.0 74 100 Undeveloped land and development properties 5.7 5.7 6.4 Ongoing projects 4.4 8.3 10.1 63 53 Total 13.4 17.3 20.5 of which ongoing projects sold according to segment reporting 0.3 1.2 1.3

0

2

4

6

8

10

12

Ongoing projects, Jan 1, 2013 Net change, 2013 Ongoing projects, Mar 31, 2013

SEK bn

Carrying amount upon completion

Market value

Page 19: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Commercial Property Development Leasing

May 7, 2013 Skanska Three Month Report 2013 19

New leases of space were signed for 15,000 sq m in Q1

0

50

100

150

200

250

300

350

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

Leasing, quarterly

Leasing, R-12

000 sq m

Page 20: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Infrastructure Development Income statement

May 7, 2013 Skanska Three Month Report 2013 20

SEK M

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Revenue 29 33 242

Gross income -33 -19 9 Selling and admin. expenses -31 -37 -186

Income from joint ventures 119 105 765

Operating income 55 49 588 of which gains from divestments of shares in projects – – 414

Page 21: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

4.5 0.1 0.1 -0,2 4,5

0

1

2

3

4

5

Dec 31, 2012 Derisk/Time value Investments Exchange rate Mar 31, 2013

Infrastructure Development Project portfolio

SEK bn Mar 31, 2013 Dec 31, 2012

Present value of cash flow from projects 5.4 5.4 Net present value of projects 4.5 4.5 Carrying amount -2.9 -2.8 Unrealized development gain 1.6 1.7 Cash flow hedge 1.6 1.6 Effect in unrealized Equity 3.2 3.3

May 7, 2013 Skanska Three Month Report 2013 21

Net present value of projects, SEK bn

Page 22: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Group Income statement

May 7, 2013 Skanska Three Month Report 2013 22

SEK M

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Operating income from business streams 695 351 5,396 Central -168 -169 -723 Eliminations -9 -34 -68 Operating income 518 148 4,605 Net financial items -72 7 -234 Income after financial items 446 155 4,371 Taxes -108 -42 -1,066 Profit for the period 338 113 3,305

Earnings per share, SEK 0.82 0.27 8.00 Tax rate, % 24 27 24

Page 23: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

-6 -4 -2 0 2 4 6 8

10

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

SEK bn

Cash flow from business operations, quarterly

R-12

Group Cash flow

May 7, 2013 Skanska Three Month Report 2013 23

SEK bn

Jan–Mar 2013

Jan–Mar 2012

Jan–Dec 2012

Cash flow from operations 0.1 -2.6 -2.0 Dividend etc. -0.1 -0.1 -2.7 Cash flow before change in interest-bearing receivables and liabilities 0.0 -2.7 -4.7

Page 24: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

0

2

4

6

8

10

12

14

16

18

0

5

10

15

20

25

Q2 Q3 Q4 Q1 2009

Q2 Q3 Q4 Q1 2010

Q2 Q3 Q4 Q1 2011

Q2 Q3 Q4 Q1 2012

Q2 Q3 Q4 Q1 2013

% SEK bn

Free working capital, SEK bn

Average free working capital/ Construction revenue, R-12, %

Construction Free working capital

May 7, 2013 Skanska Three Month Report 2013 24

Free working capital, end of Q1, SEK bn

Page 25: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Group Financial position

May 7, 2013 Skanska Three Month Report 2013 25

SEK bn

Mar 31 2013

Mar 31 2012

Dec 31 2012

Total assets 85.1 80.3 88.2 Equity attributable to equity holders 20.3 20.2 19.4 Interest-bearing net receivables (+)/net debt (-) -1.2 0.5 -1.9 Operating net financial assets/liabilities 5.1 7.1 4.6 Capital employed, closing balance 35.6 30.5 34.5 Equity/assets ratio, % 23.9 25.2 21.9

0 2 4 6 8

10 12 14

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

SEK bn Operating net financial assets/liabilities

Page 26: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Group Change in financial position

May 7, 2013 Skanska Three Month Report 2013 26

SEK bn Jan–Mar

2013 Jan–Mar

2012 Jan–Dec

2012

Opening balance interest-bearing net receivables/net debt -1.9 2.9 2.9 Cash flow before change in interest-bearing receivables and liabilities 0.0 -2.7 -4.7 Change in pension liability 0.7 0.3 -0.1 Change in interest-bearing net receivables/net debt 0.7 -2.4 -4.8 Closing balance interest-bearing net receivables/net debt -1.2 0.5 -1.9 Pension liability, net 3.1 3.4 3.6 Interest-bearing debt co-ops 3.2 3.2 2.8 Operating net financial assets/liabilities 5.1 7.1 4.6

Page 27: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Group Investments and capital employed

May 7, 2013 Skanska Three Month Report 2013 27

SEK bn Mar 31

2013 Mar 31

2012 Dec 31

2012 Capital employed in: Residential Development 10.6 13.0 11.3 Commercial Property Development 13.0 11.4 13.6 Infrastructure Development 1.1 1.7 1.1 Total in Development Streams 24.7 26.1 26.0

-8 -6 -4 -2 0 2 4 6 8

10

Q2

Q3

Q4

Q1 2009

Q2

Q3

Q4

Q1 2010

Q2

Q3

Q4

Q1 2011

Q2

Q3

Q4

Q1 2012

Q2

Q3

Q4

Q1 2013

SEK bn

Investments, quarterly

Divestments, quarterly

Net investments, R-12

Page 28: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Cross Rail, London, UK

− General − Stable but large local differences − Fierce competition

− USA Civil − Large and complex civil construction

projects − Intense competition

− USA Building − Healthcare, Aviation, IT-facilities − Commercial buildings

− Latin America − Market towards mining industry has

deteriorated

− Nordics − Norway strong − Residential construction improving − Large civil projects stable

− Other European countries

Market outlook Construction

May 7, 2013 Skanska Three Month Report 2013 28

Q1

Page 29: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Lomma, Malmö, Sweden

Market outlook Residential Development − General

− Improved market but still some uncertainty in the market

− Sweden − Improved market

− Norway − Good demand and rising prices

− Finland − Relatively Stable

− Other European countries − Poland relatively stable − Czech weak but has improved

somewhat

May 7, 2013 Skanska Three Month Report 2013 29

Q1

Page 30: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Green Towers, Wrocław, Poland

Market outlook Commercial Property Development

− General − Tenants: Relative stable vacancy rates − Investors: Demand for green properties

with stable tenants, valuations attractive

− Nordics − Tenants long decision processes − Investors picky

− Other European countries − Higher demand in Poland

− The U.S. − Vacancy rates declining

May 7, 2013 Skanska Three Month Report 2013 30

Q1

Page 31: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Elizabeth River Tunnels, Virginia, U.S.

Market outlook Infrastructure Development

− Good potential for PPP in the U.S. but tough competition

− UK market connected with uncertainty

− Rest of Europe limited market

May 7, 2013 Skanska Three Month Report 2013 31

Q1

Page 32: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Going forward

32 May 7, 2013 Skanska Three Month Report 2013

Challenges

Actions − Implementation of restructured Residential business

− Leasing −Divestments

−Restructuring in Latin America

−Expanding U.S. operations

−Sweden −UK − Latin America

Construction Project Development

Infrastructure Commercial Property Residential

Opportunities −BoKlok −USA, Poland −USA −USA, Norway

− Land in the Nordics

−High bid activity

Page 33: Three Month Report 2013 - Skanska › 48db29 › siteassets › ... · 2013 − Stable Q1 − Solid U.S. results − Construction in Norway and Finland continue to improve − Strong

Open House May 18 at NKS

May 7, 2013 Skanska Three Month Report 2013 33

When: Saturday May 18, 11:00 – 3:00 PM Where: Karolinska Universitetssjukhuset Solna, Skanska’s entrance