Three Month Report Stretch & Flex during Safety Week at Sergels Torg, Stockholm, Sweden

Transcription

1 Three Month Report Stretch & Flex during Safety Week at Sergels Torg, Stockholm, Sweden

2 Three Month Report Increased revenue Significant increase in operating income SEK 2.0 (0.8) Strong performance in Commercial and Residential Development Decreased profitability in Construction ROCE Project Development 15.8% (11.9) Net investment in Project Development SEK -1.6 bn (-0.2) Continued strong financial position Positive market outlook 400 Fairview, Seattle, U.S. May 12, Skanska Three Month Report 2

3 Commercial Property Development Operating income SEK 1,361 M (182) Divestments of SEK 4.2 bn (1.1) Gain SEK 1.5 bn (0.3) ROCE 16.4% (13.5) 46 ongoing projects SEK 18.0 bn in investment value 43% pre-leasing rate 46% completion rate 6 project starts in Q1 415,000 sq m leased R-12, all time high Örestad City, Copenhagen, Denmark May 12, Skanska Three Month Report 3

4 101 Seaport, Boston, U.S. Building Facts: 41,000 sq m office space and approximately 2,000 sq m of ground-floor retail 17 stories high LEED Platinum certified Tenants: PwC, Red Thread / Steelcase, Skanska Key differentiators: Virtually column-free floors, elevated ceiling heights, and floor-to-ceiling vision glazing Triple-glazed curtainwall & chilled beam cooling Boutique fitness center Private terrace (PwC) with 270-degree views, access to three parks within one-block May 12, Skanska Three Month Report 4

5 Seaport District Watermark Seaport 101 Seaport 121 Seaport 5 May 12, Skanska Three Month Report 5

6 Commercial Development U.S. locations May 12, Skanska Three Month Report 6

7 Commercial Development U.S. timeline SEK M 8,000 30% 7,000 25% 6,000 5,000 20% 4,000 15% 3,000 10% 2,000 1,000 5% Q1 0% Capital Employed (closing balance) ROCE adjusted May 12, Skanska Three Month Report 7

8 Commercial Development U.S. performance 291,945 m 2 in ongoing projects 6 ongoing projects 6 sold projects Accumulated EBIT SEK 2.5 bn ROCE R-12, 26% May 12, Skanska Three Month Report 8

9 Commercial Property Development Grand total 46 ongoing projects Investment SEK 18 bn Nordics 26 ongoing projects U.S. 35% Nordics 40% U.S. 6 ongoing projects Europe 26% Capital employed SEK 18 bn Rest of Europe 14 ongoing projects May 12, Skanska Three Month Report 9

10 Residential Development Revenue SEK 2.7 bn (3.0) 1,039 (991) homes sold 988 (726) homes started Operating income SEK 297 M (230) Strong performance in Sweden and Central Europe Operating margin increasing 11.2% (7.7) ROCE 15.0% (8.1) Completed unsold homes decreasing Kviberg, Gothenburg, Sweden May 12, Skanska Three Month Report 10

11 Infrastructure Development Operating income SEK 86 M (153) Project portfolio s net present value SEK 4.9 bn, SEK 0.1 in underlying increase ROCE 15.2% (16.0) Financial close LaGuardia Airport expected mid- New Karolinska Solna, Stockholm, Sweden May 12, Skanska Three Month Report 11

12 Construction Revenue SEK 30.4 bn (30.7) Order bookings SEK 30.3 bn (30.2) Sweden, Poland and USA Building strong Book-to-build: 87% Continued strong pipeline Operating income SEK 442 M (622) Situation still challenging in USA Civil Seasonal effects Completion of large projects in the comparable period Linnaeus University, Kalmar, Sweden May 12, Skanska Three Month Report 12

13 Construction Order situation SEK bn R-12 Bookto-build 87% Order backlog Order bookings, R-12 Revenue, R Order bookings per quarter SEK bn Jan Dec Revenue Order bookings Order backlog May 12, Skanska Three Month Report 13

14 Construction Order bookings SEK bn Bookto-build, R-12, % Months of production Sweden Norway Finland Poland Czech Republic UK USA Building USA Civil Total May 12, Skanska Three Month Report 14

15 Construction Income statement Operating margin, R-12, % SEK bn Revenue Operating margin Revenue, R-12, SEK bn Jan Dec Revenue Gross income Selling and administrative expenses Operating income Gross margin, % Selling and administrative expenses, % Operating margin, % May 12, Skanska Three Month Report 15

16 Construction Income statement Operating income, SEK M Operating margin, % Sweden Norway Finland Poland neg neg Czech Republic neg neg UK USA Building USA Civil Total May 12, Skanska Three Month Report 16

17 Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue Revenue, R-12, SEK bn Operating margin SEK M Jan Dec Revenue 2,660 2,985 12,298 Gross income ,724 Selling and administrative expenses Income from joint ventures Operating income ,174 Gross margin, % Selling and administrative expenses, % Operating margin, % May 12, Skanska Three Month Report 17

18 Residential Development Income statement Operating income, SEK M 1 Operating margin, % 1 Sweden Norway Finland Nordics Central Europe Total Development gain only, construction margin reported under Construction 2 Czech Republic, Poland and the UK May 12, Skanska Three Month Report 18

19 Residential Development Homes started and sold, R-12 Homes 5,000 4,000 3,000 Sold Started 2,000 1, Homes started Jan Dec Homes sold Jan Dec ,000 1, ,093 May 12, Skanska Three Month Report 19

20 Residential Development Homes in production Homes 7,000 6,000 5,000 4,000 3,000 2,000 Unsold completed Unsold under construction Sold under construction 1, Homes in production Of which sold, % Unsold completed homes Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, 5,878 4, May 12, Skanska Three Month Report 20

21 Commercial Property Development Income statement, segment reporting SEK M Jan Dec Revenue 4,420 1,165 9,034 Gross income 1, ,661 Selling and administrative expenses Income from joint ventures and associated companies Operating income 1, ,947 of which gain from divestments of properties 1 1, ,564 of which write downs/reversal of write downs Additional gain included in eliminations Development gain only, construction margin reported under Construction May 12, Skanska Three Month Report 21

22 Commercial Property Development Divestments SEK bn Revenue from divestments, R-12 Operating income from divestments, R Sale of commercial properties SEK M Sales price Capital gain Year-to-date 4,247 1,457 May 12, Skanska Three Month Report 22

23 Commercial Property Development Unrealized and realized gains SEK bn Unrealized gains in: Land Ongoing projects Completed projects Realized gains, R-12 May 12, Skanska Three Month Report 23

24 Commercial Property Development Leasing 000 sq m Leasing, quarterly Leasing, R New leases of space were signed for 415,000 sq m, R-12 May 12, Skanska Three Month Report 24

25 Infrastructure Development Income statement SEK M Jan Dec Revenue Gross income Selling and administrative expenses Income from joint ventures ,147 Operating income of which gains from divestments of shares in projects 420 May 12, Skanska Three Month Report 25

26 Infrastructure Development Project portfolio Net present value of projects, SEK bn Dec 31, Derisk/ Time value Investments/ Divestments Currency effect Mar 31, SEK bn Mar 31, Dec 31, Present value of cash flow from projects Net present value of projects Carrying amount Unrealized development gain Cash flow hedge Effect in unrealized Equity May 12, Skanska Three Month Report 26

27 Group Income statement SEK M Jan Dec Operating income from business streams 2,186 1,187 7,858 Central ,346 Eliminations Operating income 1, ,461 Net financial items Income after financial items 1, ,148 Taxes ,219 Profit for the period 1, ,929 Earnings per share, SEK Tax rate, % Latin American operations included from 1/ May 12, Skanska Three Month Report 27

28 Group Cash flow SEK bn Cash flow from business operations, quarterly R-12 SEK bn Jan Dec Cash flow from operations Net strategic investments Dividend etc Cash flow before change in interestbearing receivables and liabilities May 12, Skanska Three Month Report 28

29 Construction Free working capital SEK bn 25 % Free working capital, SEK bn Free working capital, end of Q1, SEK bn Average free working capital/ Construction revenue, R-12, % May 12, Skanska Three Month Report 29

30 Group Investments, divestments and capital employed SEK bn Investments, quarterly Divestments, quarterly Net investments, R-12 SEK bn Jan Dec Capital employed in: Residential Development Commercial Property Development Infrastructure Development Total in Development Streams May 12, Skanska Three Month Report 30

31 Group Financial position Operating net financial assets/liabilities, SEK bn SEK bn Mar 31 Mar 31 Dec 31 Total assets Equity attributable to equity holders Interest-bearing net receivables (+)/net debt (-) Operating net financial assets/liabilities Capital employed, closing balance Equity/assets ratio, % May 12, Skanska Three Month Report 31

32 Market outlook Construction Overall a positive market outlook Nordic countries Strong building market in Sweden, stable in Norway Strong civil market with fierce competition in Norway and Sweden, Finland weak Other European countries UK and Polish market strong Czech Republic and Slovakia continue to improve North America The U.S. continues to be a good market, but with fierce competition Copyright Building, London, UK May 12, Skanska Three Month Report 32

33 Market outlook Residential Development General Challenge to acquire land in all home markets except for Finland Nordic countries Sweden very strong Norway mixed Finland weak Central Europe Volumes and prices continue to increase Nya Hem Johanneberg, Gothenburg, Sweden May 12, Skanska Three Month Report 33

34 Market outlook Commercial Property Development General Tenants: Strong demand, vacancy rates low Investors: Strong demand, valuations attractive Nordic countries High interest from investors and low vacancy rates in Sweden especially Central Europe High demand in Poland and improving in other parts of Central Europe North America Strong investor appetite and good tenant demand High Five, Krakow, Poland May 12, Skanska Three Month Report 34

35 Market outlook Infrastructure Development All countries Strong market for PPPs in the U.S., but competition is considerable Norwegian market improving Thin pipeline in the other markets New Papworth Hospital, Cambridge, UK May 12, Skanska Three Month Report 35

36 May 12, Skanska Three Month Report 36