Nine Month Report Breakthrough, Project Hallandsås, Sweden

Transcription

1 Nine Month Report Breakthrough, Project Hallandsås, Sweden

2 Nine Month Report Increased revenue and order bookings Improved results, driven by Residential Development Czech Republic write downs due to market situation High activity in Commercial Property Development Well diversified business, stable market outlook 2

3 Construction Revenue SEK 92.1 bn (90.3) 5% growth in local currency Order bookings SEK 90.8 bn (88.1) Nordic region and U.S. Building strong Operating income SEK 2.6 bn (2.6) SEK 220 M write down in Czech Republic in Q3 Improved profitability in Finland and Norway Continued good profit level in the U.S. Moorgate Exchange, London, UK 3

4 New orders in Construction in Q3 SEK M Office, U.S. 1,400 Laboratory, Sweden 1,200 Steel construction, U.S. 1,200 Campus, U.S. 850 Building, U.S. 780 Tramway, Norway 600 Total bookings in Q3 30,500 4 Transbay Transit Center, San Francisco, U.S.

5 Residential Development Revenue SEK 7.0 bn (5.9) 2,642 (2,104) homes sold 2,500 (1,980) homes started Operating income SEK 442 M (-242) Profitability continues to improve Sweden especially Fiskebäck Brygga, Gothenburg, Sweden 5

6 Commercial Property Development Transactions Divestments of SEK 3,637 M (3,242) Income from divestments SEK 789 M (741) 5 project starts in Q3 28 ongoing projects SEK 9.8 bn in investment value 68% pre-leasing rate 50% completion rate 170,000 sq m leased 93,000 sq m in Q3 Green Day, Wrocław, Poland 6

7 Infrastructure Development Net present value of SEK 4.6 bn in project portfolio No divestments in Q3 7 New Karolinska Solna, Sweden

8 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 8 Residential Development Commercial Property Development Infrastructure Development Total

9 Construction Order situation SEK bn 175 R-12 Book-to-build 97% Order backlog Order bookings, R-12 Revenue, R-12 Order bookings per quarter 0 Q4 Q Q2 Q3 SEK bn 9 Jan Dec Revenue Order bookings Order backlog

10 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 Other 0.3 Total

11 Construction Income statement Operating margin, R-12, % Q4 SEK bn Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Revenue, R-12, SEK bn Revenue Operating margin Q1 Q2 Q Jan Dec Revenue Gross income Selling and admin. expenses Operating income Gross margin, % Selling and admin. expenses, % Operating margin, %

12 Construction Income statement Operating income, SEK M Operating margin, % Sweden Norway Finland Poland Czech Republic neg 1.9 UK USA Building USA Civil Latin America neg Other Total 2,592 2,

13 Residential Development Income statement, segment reporting Operating margin, R-12, % Q4 SEK M Q Revenue Operating margin Revenue, R-12, SEK bn Q2 Q3 Jan Dec Revenue 7,003 5,913 8,682 Gross income Selling and admin. expenses Income from joint ventures Operating income Gross margin, % Selling and admin. expenses, % Operating margin, % 6.3 neg neg

14 Residential Development Income statement Operating income, SEK M 1 Operating margin, % 1 Sweden neg Norway Finland Nordics neg Other European countries neg neg Total neg 1 Development gain only, construction margin reported under Construction 2 Czech Republic, Poland and the UK 14

15 Residential Development Homes started and sold Homes 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Q4 Q Q2 Q3 Sold Started Homes started Jan Dec Homes sold Jan Dec 2,500 1,980 2,993 2,642 2,104 3,060 15

16 Residential Development Homes in production Homes 6,000 5,000 4,000 3,000 2,000 Unsold completed Unsold under construction Sold under construction 1,000 0 Q4 Q Q2 Q3 Homes in production Of which sold, % Unsold completed homes Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, 5,126 5,

17 Commercial Property Development Income statement, segment reporting SEK M Jan Dec Revenue 3,951 3,596 6,742 Gross income ,923 Selling and administrative expenses Income from joint ventures and associated companies Operating income ,448 of which gain from divestments of properties ,693 of which write downs/reversal of write downs Additional gain included in eliminations was Development gain only, construction margin reported under Construction 17

18 Commercial Property Development Divestments SEK bn Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue from divestments, R-12 Operating income from divestments, R-12 Sale of commercial properties SEK M Sales price Capital gain YTD 3,

19 Commercial Property Development Carrying amounts and market values SEK bn Ongoing projects, Jan 1, Net change, Ongoing projects, Sep 30, Carrying amount upon completion Market value Carrying amount, end of period 19 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 completed projects sold according to segment reporting of which ongoing projects sold according to segment reporting

20 Commercial Property Development Leasing 000 sq m Leasing, quarterly Leasing, R-12 0 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 New leases of space were signed for 93,000 sq m in Q3, 235,000 sq m R-12 20

21 Infrastructure Development Income statement SEK M Jan Dec Revenue Gross income Selling and admin. expenses Income from joint ventures Operating income of which gains from divestments of shares in projects

22 Infrastructure Development Project portfolio Net present value of projects, SEK bn ,3-0,2 4, Dec 31, Derisk/Time value Net Investments Sep 30, SEK bn Sep 30, Sep 30, 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

23 Group Income statement SEK M Jan Dec Operating income from business streams 3,929 3,445 5,396 Central Eliminations Operating income 3,489 2,865 4,605 Net financial items Income after financial items 3,280 2,716 4,371 Taxes ,066 Profit for the period 2,394 2,010 3,305 Earnings per share, SEK Tax rate, %

24 Group Cash flow SEK bn Cash flow from business operations, quarterly 0 R Q4 Q Q2 Q3 SEK bn 24 Jan Dec Cash flow from operations Net strategic investments Dividend etc Cash flow before change in interestbearing receivables and liabilities

25 Construction Free working capital SEK bn 25 % Free working capital, SEK bn Free working capital, end of Q3, SEK bn Average free working capital/ Construction revenue rolling 12 months, % 0 Q4 Q Q2 Q3 0 25

26 Group Financial position Operating net financial assets/liabilities, SEK bn Q4 Q Q2 Q3 SEK bn 26 Sep 30 Sep 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, %

27 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

28 Group Change in equity SEK bn Jan Dec Opening balance Dividend to shareholders Profit for the period Other comprehensive income Translation differences Effects of actuarial gains and losses on pensions Effects of cash flow hedges Closing balance

29 Group Investments and capital employed SEK bn Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Investments, quarterly Divestments, quarterly Net investments, R-12 SEK bn Sep 30, Sep 30, Dec 31, Capital employed in: Residential Development Commercial Property Development Infrastructure Development Total in Development Streams

30 Q3 Market outlook Construction General Changed outlook in several markets but overall a stable market with fierce competition Nordic countries Building market improved in Sweden but slowed in Norway Investments in Norwegian infrastructure expected to increase Other European countries Commercial building in the U.K. and civil construction in Poland are improving The Americas Latin America weakening U.S. civil construction still favorable but new energy related projects delayed U.S. Building construction continues to be favorable 30 Construction, UK

31 Q3 Market outlook Residential Development Nordic countries Sweden improving Norway leveling off Finland remains weak Other European countries Poland relatively stable Czech Republic stabilized at a low level 31 Västermalmsterrassen, Stockholm, Sweden

32 Q3 Market outlook Commercial Property Development General Tenants: Stable vacancy rates Investors: Demand for green properties with stable tenants, valuations attractive Nordic countries Increasing interest from domestic investors in newly developed properties in Sweden Other European countries Higher demand in Poland Vacancy rates continue to decline in our U.S. markets 32 Stone34, Seattle, U.S.

33 Q3 Market outlook Infrastructure Development Good potential for PPP in the U.S. but tough competition UK market thin pipeline 33 A1 motorway, Poland

34 Going forward Construction Residential Project Development Commercial Property Infrastructure Opportunities U.S. Sweden Growth Value creation U.S. U.S. Challenges Latin America Czech Republic Efficiency enhancement Land in Sweden UK pipeline Long processes Actions Expand in U.S. Turn around Latin America Cost reduction CZ Address cost and capital efficiency Land acquisitions Start projects New sectors and clients 34

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