Annual General Meeting Stockholm, April 13, 2018 April 13, 2018 - - PowerPoint PPT Presentation

Annual General Meeting

Stockholm, April 13, 2018

April 13, 2018 Skanska Annual General Meeting 1

Anders Danielsson

President and CEO

We build for a better society.

Watermark Seaport, 101 Seaport, 121 Seaport, Boston, USA

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New Group Leadership Team

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Anders Danielsson President and Chief Executive Officer Magnus Persson Executive Vice President, Chief Financial Officer Claes Larsson Executive Vice President Kirsi Mettälä Executive Vice President, Human Resources Richard Kennedy Executive Vice President Caroline Fellenius-Omnell Executive Vice President, General Counsel

SEK bn 2017 2016

Revenue 160.8 151.3 Profit for the year 4.9 6.5

The Group

Revenue and profit

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Financial targets 2016–2020

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Target Outcome 2017 Project Development

≥ 10% 14.5%

Return on capital employed Construction

≥ 3.5% 0.8%

Operating margin Group

can be negative

9.7

Financial strength, SEK bn Return on equity

≥ 18% 18.6%

A strong balance sheet

SEK M

5,000 10,000 15,000 20,000 25,000 2014 2015 2016 2017 Investment capacity Investments in Project Development

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Residential Development

BoKlok Production Plant Gullringen Sweden

Commercial Property Development

Five Prague Czech Republic

Infrastructure Development

LaGuardia New York USA

Project Development Construction

James A. Farley Post Office Building, New York, USA

Our business

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Residential Development

BoKlok Production Plant, Gullringen, Sweden

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Kruunuvuorenranta, Helsinki, Finland

Residential Development

SEK bn 2017 2016

Revenue 13.2 13.3 Operating income 1.7 1.6 Operating margin, % 13.0 12.1 Return on capital employed, % 15.4 17.1

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Nordics Europe

BoKlok Flex Strandallén Södertälje, Sweden

Residential Development

Market outlook 2018

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Commercial Property Development

Five, Prague, Czech Republic

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Commercial Property Development

Capital employed – distribution by market1

Nordics

36%

Europe

33%

USA

31%

1 As of Dec 31, 2017

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Boston Washington DC Seattle Houston Wrocław Warszawa Oslo Malmö Helsinki Bucharest Stockholm Copenhagen Prague Poznań Kraków Katowice Gothenburg Budapest Ostrava Łodz Gdańsk

Commercial Property Development

SEK bn 2017 2016

Investments 10.7 8.4 Ongoing projects

Number of projects 46 47 Total investments 27.6 20.3

New leases, sq m (000) 477 379 Estimated surplus value 7.9 7.2

Sundtkvartalet, Oslo, Norway

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The Monument Building London, UK

Commercial Property Development

SEK bn 2017 2016

Revenue 11.4 10.2 Operating income 2.7 2.3

• f which gain on sale

3.51 3.1

Return on capital employed2, % 15.5 14.8

1 Inclusive joint ventures 2 Adjusted

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121 Seaport, Boston, USA

Commercial Property Development

Market outlook 2018 Nordics Europe USA

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Infrastructure Development

LaGuardia, New York, USA

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I-4 Ultimate, Florida, USA

Infrastructure Development

Projects in the portfolio 5

• f which completed

2

• ngoing

3

SEK bn 2017 2016

Portfolio, net present value 3.0 4.3 Unrealized development gain (estimated) 0.5 1.4

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Autostrada A1, Gdańsk, Poland

Infrastructure Development

SEK bn 2017 2016

Operating income 0.9 1.8

• f which gain on sale

1.0 1.7

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Elizabeth River Tunnels, Norfolk, USA

Infrastructure Development

Market outlook 2018 Focus on USA Monitoring development in Europe

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James A. Farley Post Office Building, New York, USA

Construction

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SEK bn 2017 2016

Order bookings 151.8 170.2 Book-to-Build, % 101 123 Order backlog 188.4 196.3

Slussen, Stockholm, Sweden

Construction

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Regional Connector, Los Angeles, USA

Construction

SEK bn 2017 2016

Revenue 150.1 138.0 Operating income 1.2 3.5 Operating margin, % 0.8 2.6 Free working capital

• 21.8
• 22.5

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− Implement a decentralization − Downsize unprofitable units − Implement a major restructuring in Poland − Exit from the US energy market − Focus on core business in the UK − Focus on infrastructure development in the US − Finally, continue to grow in the profitable residential and commercial property development sectors

Strategic initiatives

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European Spallation Source (ESS) Lund, Sweden

Construction

Market outlook 2018 Nordics Europe USA

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We build for a better society.

Highway 6 Taavetti-Lappeenranta, South Karelia, Finland

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