Six Month Report Midtown Tunnel, Virginia, USA

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1 Six Month Report Midtown Tunnel, Virginia, USA

Six Month Report Order bookings increased by 36 percent in the second quarter Good momentum in new orders, especially in the U.S. Revenue growth in Construction, up 11 percent High level of divestments from Commercial Property Development Financial Close of Midtown Tunnel in the U.

2 Six Month Report Order bookings increased by 36 percent in the second quarter Good momentum in new orders, especially in the U.S. Revenue growth in Construction, up 11 percent High level of divestments from Commercial Property Development Financial Close of Midtown Tunnel in the U.S. Residential Development business under restructuring 2 London Hospital, London

3 JanuaryJune in brief Ongoing operating income 1.8 bn (1.6) Restructuring costs and sale of the Autopista Central excluded Revenue in Construction SEK 57.2 bn (51.4) Up 11% (8% in local currency) in Q2 compared to Q2 Operating margin in Construction 2.4% (2.8%) Order bookings SEK 61.6 bn (48.4) Up 27% in Q2 compared to Q2 113% book-to-build ratio rolling 12 months Backlog of SEK bn represents 16 (15) months of construction 3

Construction Continued strong order situation Growth in revenue Larger proportion of projects in early stage Mixed market sentiment Nordic stable Other European

4 Construction Continued strong order situation Growth in revenue Larger proportion of projects in early stage Mixed market sentiment Nordic stable Other European countries weak The Americas strong Turnaround in Norway and Finland goes according to plan Project write-downs in Latin America of SEK 80 M in Q2 Newtown Creek, New York 4

5 New orders in Construction in Q2 Midtown tunnel, Virginia U.S., SEK 4.4 bn Bus depot, Stockholm, Sweden, SEK 1.3 bn Shopping center, Oslo, Norway, SEK 1.1 bn Highway Tampa, Florida, U.S., SEK 1.0 bn Moynihan station, New York, U.S., SEK 1.0 bn Naval wharf, Silverdale, U.S., SEK 1.0 bn 5 Moorgate Exchange, London

Residential Development Restructuring of the Nordics Restructuring costs of SEK 300 M Annual savings of SEK 180 M Additional efficiency improvements Write-down of land

6 Residential Development Restructuring of the Nordics Restructuring costs of SEK 300 M Annual savings of SEK 180 M Additional efficiency improvements Write-down of land Czech Republic and Slovakia of SEK 80 M Operating income SEK -310 M (286) Revenue SEK 4.0 bn (4.5) 1,408 (1,697) homes sold 1,381 (1,737) homes started Järvastaden, Stockholm 6

7 Commercial Property Development Divestments of SEK 3.2 bn (0.6) Gains SEK 703 M (133) 3 new project start ups 34 ongoing projects SEK 10.7 bn in investment value 60% pre-leasing rate 121,000 sq. m leased YTD 95,000 sq. m in Q2 City Green Court, Prague 7

8 Infrastructure Development Financial close Midtown tunnel SEK 0.9 bn investment SEK 4.4 bn order booking Improved possibilities in the U.S. with potential for new projects New Karolinska, Solna, Sweden 8

9 Synergies in Skanska s business model Free working capital Revenue clients Construction Investment opportunities Project Development Internal contracts 12% of revenue in Construction Return on equity 18-20% Dividend 40-70% of profit Internal revenue, SEK bn 9 Residential Development Commercial Property Development Infrastructure Development Total

10 Construction Order bookings and Order backlog SEK bn 175 Book-to-build 113% Order backlog Order bookings, rolling 12 month basis Revenue, rolling 12 month basis 25 Order bookings per quarter 0 Q3 Q4 Q1 08 Q2 Q3 Q4 Q1 09 Q2 Q3 Q4 Q1 10 Q2 Q3 Q4 Q1 11 Q2 Q3 Q4 Q1 12 Q2 SEK bn 10 Jan Dec Revenue Order bookings Order backlog

11 Construction Order bookings SEK bn Change in local currency, % Bookto-build, R-12, % Sweden Norway Finland Poland Czech Republic UK USA Building USA Civil Latin America Total

12 Construction Income statement % SEK bn Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q Rolling 12 months Operating margin Revenue SEK bn 12 Jan Dec Revenue Gross income Selling and admin. expenses Operating income Gross margin, % S&A expenses, % Operating margin, %

13 Construction Income statement Operating income, SEK M Operating margin, % Sweden Norway neg Finland neg Poland Czech Republic neg UK USA Building USA Civil Latin America neg 0.0 Total 1,348 1,

14 Residential Development Income statement, segment reporting % Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 SEK bn Rolling 12 months Operating margin Revenue SEK M 14 Jan Dec Revenue 4,010 4,453 8,550 Gross income ,030 Selling and admin. expenses Income from joint ventures Operating income Gross margin, % S&A expenses, % Operating margin, % neg

15 Residential Development Income statement Operating income, SEK M 1 Operating margin, % 1 Sweden neg 6.6 Norway Finland Nordics neg 6.6 Czech Republic neg 10.5 Other Total neg Development gain only, construction margin reported under Construction 2 Start-ups in new markets 15

16 Residential Development Homes sold and started Homes 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Q3 Q4 Q1 08 Q2 Q3 Q4 Q1 09 Q2 Q3 Q4 Q1 10 Q2 Q3 Q4 Q1 11 Q2 Q3 Q4 Q1 Q2 12 Rolling 12 months Sold Started Homes sold Jan Dec Homes started Jan Dec 1,408 1,697 3,193 1,381 1,737 3,630 16

17 Residential Development In production status Homes 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Unsold Completed Unsold under construction Sold under construction 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Homes in production Of which sold, % Unsold completed homes Q2, Q2, Q2, Q2, Q2, Q2, 5,348 5,

18 Commercial Property Development Income statement, segment reporting SEK M Jan Dec Revenue 3, ,633 Gross income ,603 Selling and administrative expenses Income from J/V and associated companies Operating income ,196 of which gain from divestments of properties ,266 of which write downs/reversal of write downs Additional gain included in eliminations was Development gain only, construction margin reported under Construction 18

19 Commercial Property Development Investments and divestments SEK bn, Investments/Divestments Q3 Q Q3 Q Q3 Q Q3 Q1 SEK bn, Operating income Q3 Q Y average SEK 987 M Investments, quarterly Divestments, quarterly Operating income, rolling 12 months Sale of commercial properties SEK M Sales price Capital gain Q Q2 3,

20 Commercial Property Development Carrying amounts and market values SEK bn Carrying amount upon completion Market value Ongoing projects, Jan 1, Net change, Ongoing projects, Jun 30, Carrying amount, end of period 20 Carrying amount, upon completion Market value Occupancy rate, % Degree of completion% SEK bn Completed projects Undeveloped land and development properties Ongoing projects Total of which ongoing projects sold according to segment reporting

21 Commercial Property Development Leasing 000 Sqm Leasing, quarterly Leasing, rolling 12 months 50 0 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 New leases of space were signed for 95,000 sq. m in Q2 21

22 Infrastructure Development Income statement SEK M Jan Dec Revenue Gross income Selling and admin. expenses Income from joint ventures 215 4,699 4,915 Operating income 189 4,561 4,726 of which gains from divestments of shares in projects 0 4,500 4,600 22

23 Infrastructure Development Project portfolio Net present value of projects, SEK bn Dec-11 Derisk/Time value Net Investments Exchange rates 30-Jun-12 SEK bn Jun 30, 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

24 Group Income statement SEK M Jan Dec Operating income from business streams 1,830 6,402 9,734 Central Eliminations Operating income 1,447 6,102 9,087 Net financial items Income after financial items 1,378 6,112 9,099 Taxes Profit for the period 1,007 5,773 8,129 Earnings per share, SEK Tax rate, %

25 Group Cash flow SEK bn Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Cash flow from business operations, quarterly Rolling 12 months SEK bn 25 Jan Dec Cash flow from operations Net strategic investments Dividend etc Cash flow before change in interestbearing receivables and liabilities

26 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 rolling 12 months, % 0 Q3 Q4 Q1 08 Q2 Q3 Q4 Q1 09 Q2 Q3 Q4 Q1 10 Q2 Q3 Q4 Q1 11 Q2 Q3 Q4 Q1 Q

27 Group Financial position Operating net financial assets/liabilites SEK bn Q Q Q2 Q2 Q2 SEK bn 27 Jun 30 Jun 30 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, %

28 Group Change in financial position SEK bn Jan Dec Opening balance interest-bearing net receivables Cash flow before change in interestbearing receivables and liabilities Change in pension liability Other changes Change in interest-bearing net receivables Closing balance interest-bearing net receivables/net debt Pension liability, net Interest-bearing debt co-ops Operating net financial assets/liabilities

29 Group Change in equity SEK bn Jan Dec Opening balance Dividend to shareholders Other changes in equity not included in total comprehensive income for the year Profit for the period Other comprehensive income Translation differences Effects of actuarial gains and losses on pensions Effects of cash flow hedges Other Closing balance

30 Group Investments and capital employed SEK bn Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Investments, quarterly Divestments, quarterly Net investments rolling 12 months SEK bn Capital employed in: Jun 30, Jun 30, Dec 31, Residential Development Commercial Property Development Infrastructure Development Total in Development Streams Gain on sale from Autopista Central excluded 30

Q2 Market outlook Construction General Stable but large local differences Fierce competition USA Civil Especially large and complex civil

31 Q2 Market outlook Construction General Stable but large local differences Fierce competition USA Civil Especially large and complex civil construction projects USA Building Healthcare High tech buildings Nordics and Poland Czech Republic and U.K. Weymouth Relief Road, U.K. 31

32 Q2 Market outlook Residential Development General Uncertainty in the market Norway Good demand and rising prices Poland, U.K. Our part of the U.K. market Sweden, Finland Relatively stable Czech Republic Øvre Tastarustå, Stavanger, Norway 32

Q2 Market outlook Commercial Property Development General Tenants: Stable vacancy rates, longer decision processes Investors: Demand for green properties with

33 Q2 Market outlook Commercial Property Development General Tenants: Stable vacancy rates, longer decision processes Investors: Demand for green properties with stable tenants, valuations attractive Nordics Finnish market more uncertain Other European countries Higher demand in Poland The U.S. Bassängkajen, Malmö, Sweden 33

34 Q2 Market outlook Infrastructure Development Increased potential for PPP in the U.S. Good potential for new projects in Latin America 34 Midtown Tunnel, Virginia, USA

35 Going forward Construction Residential Project Development Commercial Property Infrastructure Opportunities USA Poland and UK Project portfolio The Americas Challenges Norway and Finland Sweden Land in the Nordics Long processes Actions Continue to improve turnarounds Implementation of restructured Residential business Leasing Divestments Prepare new bids 35

Hunts Library, North Carolina State University, U.S.

Y Year-end d reportt Hunts Library, North Carolina State University, U.S. Year-end report Revenue growth in Construction ti Earnings in Construction at the same level as including write- downs in Latin