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Annual Shareholders Meeting Stockholm, April 7, 2005 Address by the - - PowerPoint PPT Presentation
Annual Shareholders Meeting Stockholm, April 7, 2005 Address by the - - PowerPoint PPT Presentation
Annual Shareholders Meeting Stockholm, April 7, 2005 Address by the CEO Stuart Graham President and CEO Divestments and exits Divestments Gammon Hong Kong Skanska Cementation India Skanska Cementation Mining South Africa, Canada
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Divestments and exits
Divestments Skanska International Projects Exit Sweden Myresjöhus Sweden Skanska Services United Kingdom Skanska Whessoe South Africa, Canada Skanska Cementation Mining India Skanska Cementation Hong Kong Gammon
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Four Business Streams
Construction Commercial Project Development BOT Residential Project Development
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Skanska’s home markets
Sweden Norway Poland Slovakia Hungary Czech Republic United Kingdom Finland Denmark Latin America United States Estonia
Construction Commercial Project Development BOT Residential Project Development
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Governance
Procedural rules Financial reporting and control Risk management systems Skanska Code of Conduct
– Health and safety – Environmental responsibility – Business ethics
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Senior Executive Team Group staff units Skanska Financial Services Skanska Project Support
The Skanska Group
Skanska Denmark Skanska Finland Skanska UK Skanska Latin America Skanska USA Civil Skanska USA Building Skanska Project Development Sweden Skanska BOT Skanska Norway Skanska Sweden Skanska Poland Skanska Czech Republic Skanska Project Development Europe Skanska Project Development Residential Nordic
Construction Residential Project Development Commercial Project Development BOT
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Residential PD, RoCE 21% 14% Commercial PD, RoCE 18/11% 15% BOT, RoCE 11% 16% Net debt/equity, Group SEK 7.5 bn 0.1–0.3
Performance vs. targets
2004 Target Capital employed, Group SEK 21 bn SEK 30 bn Construction, RoCE 20% 25% Construction, Operating margin 1.1% 2.5%
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Skanska Sweden – a FLAGSHIP business unit
Financial results Initiatives in procurement and industrialization Industry leadership
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Prague Airport, Czech Republic
Skanska Czech Republic Operating margin 4.7%
Lomo de la Lata, Argentina
Skanska Latin America Operating margin 4.2%
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Baylor University
Waco, Texas
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Sazka Arena
Prague, Czech Republic
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Millennium Bridge
Wroclaw, Poland
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New Jersey Turnpike Bridge Rehabilitation
New Jersey, USA
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Ministry of Defence
London, England
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Sandviken Brygge Residential Project Development
Bergen, Norway
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Ceres II Commercial Project Development
Gothenburg, Sweden
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Skanska 2004
Operating income 3,853 4,532 Operating cash flow 9,218 11,317 Shareholders’ equity 16,066 14,169 Return on equity, % 17.5 19.5 SEK M 2004 2003 Net sales 121,263 132,879 Earnings per share, SEK 6.33 6.60 Dividend per share, SEK 4.00* 3.00 * proposed
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Outperform all the time
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New financial ”Outperform” targets 2007
16.0% 15.0% 18.0%
Return on capital employed Return on equity Operating margin
18.0% Group BOT Commercial Project Development 10.0% Residential Project Development 3.3% Construction
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Outperform qualitative targets
Zero loss-making projects Zero accidents Zero environmental incidents Zero ethical breaches Management development
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Procurement process
SEK 70 billion per year Redefining the value chain Volume concentration Global sourcing
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Industrialization
Industrialized concept Market
Platform Components Product
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Market outlook
Sweden Norway Poland Slovakia Hungary Czech Republic United Kingdom Finland Denmark Latin America United States Estonia
Most home markets holding up Some uncertainty in the US Growth in Poland, Czech Rep. and LA Potential in project development and BOT