Three Month Report 2012 733 10 th Street, Washington D.C. Three - - PowerPoint PPT Presentation

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Three Month Report 2012 733 10 th Street, Washington D.C. Three - - PowerPoint PPT Presentation

Mar 03, 2023 166 likes •530 views

Three Month Report 2012 733 10 th Street, Washington D.C. Three Month Report 2012 Residential Development in Sweden a disappointment and intensive work with turnaround ongoing Revenue growth in Construction, book-to-build rolling 12

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SLIDE 1

Three Month Report 2012

733 10th Street, Washington D.C.

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SLIDE 2

Three Month Report 2012

− Residential Development in Sweden a disappointment and intensive work with turnaround ongoing − Revenue growth in Construction, book-to-build rolling 12 months 107% − Good potential to increase order backlog − Restructuring of Construction businesses in Norway and Finland goes according to plan − Earnings in Construction seasonally weak in Q1 − Value creation in Commercial Property and Infrastructure Development continues

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SLIDE 3

January−March 2012 in brief

− Operating income of SEK 148 M (451) − Residential Development SEK -22 M (196) − Revenue in Construction SEK 26.2 bn (22.7)

− Up 16% (14% in local currency) in Q1 2012 compared to Q1 2011

− Operating margin in Construction 1.2% (1.4%) − Order bookings SEK 25.1 bn (21.6)

− Up 16% in Q1 2012 compared to Q1 2011 − 107% book-to-build ratio rolling 12 months

− Backlog of SEK 152.9 bn represents 16 (15) months of construction

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SLIDE 4

Construction

− Good order situation − Mixed market sentiment

− Nordic stable − Other European countries weak − The Americas good

− First quarter seasonally a weaker quarter − Turnaround in Norway and Finland goes according to plan − Project writedowns in Latin America of SEK 100 M

Värtan Interchange in Norra länken (Northern Link) highway, Stockholm

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SLIDE 5

New orders in Construction in Q1

− Research campus, U.S., SEK 3.0 bn − Natural gas plant, Brazil, SEK 1.7 bn − Research and development facility, U.S., SEK 860 M − Manufacturing facility, U.S., SEK 820 M − Subway systems, U.S., SEK 588 M

Second Avenue Subway Systems project, New York City

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SLIDE 6

Residential Development

− Weak performance

− Operating income SEK -22 M (196)

− Revenue SEK 1.7 bn (2.7)

− Price mix

− 648 (926) homes sold − 480 (837) homes started − Intensive turnaround work ongoing

Cambridge, England, U.K.

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SLIDE 7

Commercial Property Development

− 4 new project start ups − 33 ongoing projects

− SEK 9.7 bn in investment value − 50% pre-leasing rate

− 26,000 sq. m leased in Q1 − First sale in the U.S. completed (Q2)

City Green Court, Prague 733 10th Street, Washington D.C.

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SLIDE 8

Infrastructure Development

− Preferred bidder

− Bradford and Calderdale Waste Treatment Project

− Financial close/Investments

− Woodlands School − Midtown tunnel (Q2): SEK 0.9 bn investment SEK 4.4 bn order booking

− High bid activity

Bradford and Calderdale Waste Treatment, UK Midtown Tunnel, Virginia, U.S.

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SLIDE 9

Synergies in Skanska’s business model

Internal revenue 2012, SEK bn

Jan–Mar 2012 Jan–Mar 2011

Residential Development 1.0 0.9 Commercial Property Development 0.6 0.2 Infrastructure Development 1.5 1.6 Total 3.1 2.7

12% of revenue in Construction

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SLIDE 10

0.0 25.0 50.0 75.0 100.0 125.0 150.0 175.0 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 SEK bn Order backlog Order bookings, rolling 12 month basis Revenue, rolling 12 month basis Order bookings per quarter

Construction

Order bookings and Order backlog

SEK bn Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Revenue 26.2 22.7 115.0 Order bookings 25.1 21.6 123.6 Order backlog 152.9 139.4 155.7 Book-to-build 107%

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SLIDE 11

Construction

Order bookings

SEK bn Jan–Mar 2012 Jan–Mar 2011 Change in local currency, % Book- to-build, R-12, %

Sweden 6.0 5.0 18 92 Norway 2.2 2.7

  • 23

128 Finland 1.1 1.5

  • 27

95 Poland 1.2 1.0 23 90 Czech Republic 0.9 0.5 74 99 UK 1.8 1.8

  • 3

74 USA Building 6.8 3.3 100 133 USA Civil 2.4 4.6

  • 50

100 Latin America 2.9 1.1 158 168 Total 25.1 21.6 14 107

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SLIDE 12

Construction

Income statement

SEK bn Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Revenue 26.2 22.7 115.0 Gross income 1.8 1.7 9.3 Selling and admin. expenses

  • 1.5
  • 1.4
  • 5.9

Operating income 0.3 0.3 3.5 Gross margin, % 7.0 7.5 8.1 S&A expenses, %

  • 5.8
  • 6.0
  • 5.1

Operating margin, % 1.2 1.4 3.0

Rolling 12 months 0.0 40.0 80.0 120.0 160.0 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012

Operating margin Revenue

%

SEK bn

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SLIDE 13

Construction

Income statement

Operating income, SEK M Operating margin, %

Jan–Mar 2012 Jan–Mar 2011 Jan–Mar 2012 Jan–Mar 2011

Sweden 168 77 2.8 1.4 Norway 5

  • 61

0.1 neg Finland

  • 15
  • 15

neg neg Poland

  • 32

78 neg 7.3 Czech Republic

  • 90
  • 39

neg neg UK 92 61 3.3 1.9 USA Building 87 68 1.5 1.4 USA Civil 188 152 6.5 7.3 Latin America

  • 80

4 neg 0.3 Total 323 325 1.2 1.4

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SLIDE 14

Residential Development

Income statement, segment reporting

SEK M Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Revenue 1,659 2,655 8,550 Gross income 162 364 1,030 Selling and admin. expenses

  • 184
  • 166
  • 680

Income from joint ventures

  • 2
  • 5

Operating income

  • 22

196 345 Gross margin, % 9.8 13.7 12.0 S&A expenses, %

  • 11.1
  • 6.3
  • 8.0

Operating margin, % neg 7.4 4.0

Rolling 12 months 0.0 2.0 4.0 6.0 8.0 10.0

  • 15.0
  • 10.0
  • 5.0

0.0 5.0 10.0 15.0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012

SEK bn

%

Operating margin Revenue

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SLIDE 15

Residential Development

Income statement

Operating income, SEK M1 Operating margin, %1

Jan–Mar 2012 Jan–Mar 2011 Jan–Mar 2012 Jan–Mar 2011

Sweden

  • 71

121 neg 8.9 Norway 43 4 7.3 1.4 Finland 21 57 4.5 7.2 Nordics

  • 7

182 neg 7.4 Czech Republic 5 23 7.9 11.3 Other2

  • 20
  • 9
  • Total
  • 22

196 neg 7.4

1 Development gain only, construction margin reported under Construction 2 Start-ups in new markets

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SLIDE 16

Residential Development

Homes sold and started

Homes sold Homes started

Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011 Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

648 926 3,193 480 837 3,630

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 July 11 Sep 11 Nov 11 Jan 12 Mar 12 Homes Sold Started

Rolling 12 months

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SLIDE 17

Residential Development

In production status

Homes in production Of which sold, % Unsold completed homes

Q1, 2012 Q1, 2011 Q1, 2012 Q1, 2011 Q1, 2012 Q1, 2011

5,183 5,210 61 65 266 156

1,000 2,000 3,000 4,000 5,000 6,000 7,000

Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 July 11 Sep 11 Nov 11 Jan 12 Mar 12

Unsold Completed Unsold under construction Sold under construction Homes

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SLIDE 18

Commercial Property Development

Income statement, segment reporting

SEK M Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Revenue 243 341 5,633 Gross income 109 140 1,603 Selling and administrative expenses

  • 111
  • 91
  • 412

Income from J/V and associated companies 3 5 Operating income 1 49 1,196

  • f which gain from divestments
  • f properties1)

51 41 1,266

  • f which write downs/reversal
  • f write downs
  • 47

1 Additional gain included in eliminations was

2 136

Development gain only, construction margin reported under Construction

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SLIDE 19

Commercial Property Development

Investments and divestments

Sale of commercial properties

SEK M Sales price Capital gain

Q1 126 51

5Y average SEK 869 M 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4

  • 2.5
  • 1.5
  • 0.5

0.5 1.5 2.5 3.5 4.5

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012

Investments, quarterly Divestments, quarterly Operating income, rolling 12 months SEK bn, Investments/Divestments SEK bn, Operating income

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SLIDE 20

Commercial Property Development

Carrying amounts and market values

SEK bn Carrying amount, end of period Carrying amount, upon completion Market value Occupancy rate, % Degree of completion%

Completed projects 2.5 2.5 3.4 83 100 Undeveloped land and development properties 4.5 4.5 5.0 Ongoing projects 4.6 9.7 12.3 50 48 Total 11.5 16.6 20.7

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Ongoing projects, Jan 1, 2012 Started projects, 2012 Ongoing projects, Mar 31, 2012

SEK bn Carrying amount upon completion Market value

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SLIDE 21

Commercial Property Development

Leasing

New leases of space were signed for 26,000 sq. m in Q1

50 100 150 200 250 300 350 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 2012 Leasing, quarterly Leasing, rolling 12 months

000 sqm

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SLIDE 22

Infrastructure Development

Income statement

SEK M Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Revenue 33 88 286 Gross income

  • 19
  • 43
  • 57

Selling and admin. expenses

  • 37
  • 32
  • 132

Income from joint ventures 105 100 4,915 Operating income 49 25 4,726

  • f which gains from divestments
  • f shares in projects

4,600

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SLIDE 23

Infrastructure Development

Project portfolio

Net present value of projects, SEK bn

SEK bn Mar 31, 2012 Dec 31, 2011

Present value of cash flow from projects 5.1 5.0 Net present value of projects 4.4 4.2 Carrying amount

  • 3.1
  • 3.0

Unrealized development gain 1.3 1.2 Cash flow hedge 1.4 1.6 Effect in unrealized Equity 2.7 2.8

4.2 0.1 0.1 4.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 31-Dec-11 Derisk/Time value Net Investments 31-Mar-12

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SLIDE 24

Group

Income statement

SEK M Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Operating income from business streams 351 595 9,734 Central

  • 169
  • 138
  • 699

Eliminations

  • 34
  • 6

52 Operating income 148 451 9,087 Net financial items 7 12 Income after financial items 155 451 9,099 Taxes

  • 42
  • 116
  • 970

Profit for the period 113 335 8,129 Earnings per share, SEK 0.27 0.81 19.72 Tax rate, % 27 26 11

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SLIDE 25

Group

Cash flow

SEK bn Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Cash flow from operations

  • 2.6
  • 3.2

2.5 Net strategic investments

  • 0.2
  • 1.4

Dividend etc.

  • 0.1
  • 5.1

Cash flow before change in interest- bearing receivables and liabilities

  • 2.7
  • 3.4
  • 4.0
  • 4.0
  • 2.0

0.0 2.0 4.0 6.0 8.0 10.0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012

SEK bn Cash flow from business operations, quarterly Rolling 12 months

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SLIDE 26

Construction

Free working capital

2 4 6 8 10 12 14 16 18 0.0 5.0 10.0 15.0 20.0 25.0

Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

% SEK bn Free working capital, SEK bn Average free working capital/ Construction revenue, % Free working capital, end of Q1, SEK bn

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SLIDE 27

Group

Financial position

SEK bn Mar 31 2012 Mar 31 2012 Dec 31 2011

Total assets 80.3 74.6 82.8 Equity attributable to equity holders 20.2 20.4 19.6 Interest-bearing net receivables (+)/net debt (-) 0.5 5.7 2.9 Operating net financial assets/liabilities 7.1 8.8 9.5 Capital employed, closing balance 30.5 26.9 30.2 Equity/assets ratio, % 25.2 27.3 23.7

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 SEK bn

Operating net financial assets/liabilites

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SLIDE 28

Group

Change in financial position

SEK bn Jan–Mar 2012 Jan–Mar 2011 Jan–Dec 2011

Opening balance interest-bearing net receivables 2.9 9.9 9.9 Cash flow before change in interest- bearing receivables and liabilities

  • 2.7
  • 3.4
  • 4.0

Change in pension liability 0.3

  • 0.2
  • 2.6

Other changes

  • 0.6
  • 0.4

Change in interest-bearing net receivables

  • 2.4
  • 4.2
  • 7.0

Closing balance interest-bearing net receivables/net debt 0.5 5.7 2.9 Pension liabilitiy, net 3.4 1.3 3.6 Interest-bearing debt co-ops 3.2 1.8 3.0 Operating net financial assets/liabilities 7.1 8.8 9.5

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SLIDE 29

Group

Investments and capital employed

SEK bn Mar 31, 2012 Mar 31, 2011 Dec 31, 2011

Capital employed in: Residential Development 13.0 11.0 12.7 Commercial Property Development 11.4 10.7 11.0 Infrastructure Development 1.7 2.7 1.4 Total in Development Streams 26.1 24.4 25.1

  • 8.0
  • 6.0
  • 4.0
  • 2.0

0.0 2.0 4.0 6.0 8.0 10.0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012

SEK bn Investments, quarterly Divestments, quarterly Net investments rolling 12 months

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SLIDE 30

Market outlook

Construction

− General

− Stable but large local differences − Fierce competition

− Positive outlook

− The U.S.

− Large and complex civil construction projects − Healthcare − High tech buildings

− Stable outlook

− Nordics

− Weak outlook

− Other European countries

????? Bay Area Rapit Transit, San Francisco, USA

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SLIDE 31

Market outlook

Residential Development

− Norway

− Good demand and rising prices

− Sweden and U.K.

− Stable

− Finland

− Slow and uncertain market

− Czech Republic

− Weak market

Adjutantti, Finland

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SLIDE 32

Market outlook

Commercial Property Development

− Tenants

− Demand for modern green properties − Stable vacancy rates

− Investors

− Demand for modern green properties with stable tenants − Attractive valuations, especially in Sweden, Norway and Poland

− Land investments

− Central Europe and the U.S.

Hyllie, Malmö, Sweden Plaza, Copenhagen, Denmark

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SLIDE 33

Market outlook

Infrastructure Development

− Potential for PPP in the U.S. − U.K. starts picking up from a low level − Good potential for new projects in Latin America

New Karolinska Solna , Sweden

Midtown Tunnel, Virginia, U.S.A.

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SLIDE 34

Going forward

Challenges Actions

− Transform into a profitable business − Focus on land acquisitions − Leasing − Work with turnarounds − Sweden − Long processes − Norway & Finland

Construction Project Development

Infrastructure Commercial Property Residential

Opportunities

− Poland & UK − Project portfolio − The Americas − USA − Land in the Nordics − Market making

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SLIDE 35