Year-end Report 2014 Malm Live, Sweden Year-end Report 2014 - - PowerPoint PPT Presentation

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Year-end Report 2014 Malm Live, Sweden Year-end Report 2014 - - PowerPoint PPT Presentation

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Year-end Report 2014 Malm Live, Sweden Year-end Report 2014 Good results across the business Increased revenues Improved profitability Solid cash flow and financial position Very strong order bookings All-time high

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SLIDE 1

Year-end Report 2014

Malmö Live, Sweden

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SLIDE 2

Year-end Report 2014

− Good results across the business

− Increased revenues − Improved profitability − Solid cash flow and financial position

− Very strong order bookings − All-time high property divestment gains − EPS SEK 9.98 (8.43) − Increased dividend SEK 6.75 (6.25)

2 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 3

Construction

− Revenue SEK 128.9 bn (119.1) − Order bookings SEK 147.4 bn (114.2)

− USA, UK and Sweden strong − Book-to-build: 114%

− Operating income SEK 4.5 bn (3.9)

− Strong performance in Nordic and Polish operations − Exit Latin America ongoing and reported Central, charge of SEK 100 M in the fourth quarter1

3 February 12, 2015 Skanska Year-end Report 2014

E18 Gulli-Langaaker, Norway 1 Business stream numbers adjusted from 1/1 2013

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SLIDE 4

Jahodnice, Prague, Czech Republic

Residential Development

− Revenue SEK 9.6 bn (9.2)

− 3,274 (3,391) homes sold − 2,846 (3,118) homes started − Low stock of unsold homes in production

− Operating income SEK 683 M (573)

− Good performance in Sweden and Norway − Focus on reducing unsold homes in Finland

− Improving profitability

− Gross margin 12.6% (11.4)

4 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 5

Dominikanski, Wrocław, Poland

Commercial Property Development

− Divestments of SEK 9.8 bn (5.8) − Income from divestments SEK 2.0 bn (1.4), an all-time high − 43 ongoing projects

− SEK 15.1 bn in investment value − 47% pre-leasing rate − 45% completion rate − 26 project starts in 2014

− 287,000 sq m leased

5 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 6

Interstate 4 Ultimate, Florida, U.S.

Infrastructure Development

− Project portfolio’s net present value increased SEK 0.4 bn to SEK 5.3 bn YTD − SEK 0.1 bn divestment gain from Autopistas de Antofagasta, Chile − SEK 200 M write down on the Sjisjka wind energy park, Sweden − Financial close on the I-4 Ultimate, Florida, U.S. (Q3) − Preferred bidder for New Papworth Hospital, UK (Q3)

6 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 7

Rex Hospital, North Carolina, U.S.

Metro Purple Line, CA, U.S. 5,500 52-54 Lime Street, UK 2,200 Uppsala University Hospital, Sweden 1,200 NYU Langone Medical Center, NY, U.S. 830 Patricia & Phillip Frost Museum, FL, U.S. 690 Rex Hospital, NC, U.S. 630 Total bookings in Q4 42,169

7

New orders in Construction in Q4

7

SEK M

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 8

Construction

Order situation

8

25 50 75 100 125 150 175

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

SEK bn Order backlog Order bookings, R-12 Revenue, R-12 Order bookings per quarter February 12, 2015 Skanska Year-end Report 2014

SEK bn Jan–Dec 2014 Jan–Dec 2013

Revenue 128.9 119.1 Order bookings 147.4 114.2 Order backlog 170.9 134.7

Latin American operations excluded from 1/1 2013

R-12 Book- to-build 114%

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SLIDE 9

Construction

Order bookings

SEK bn Jan–Dec 2014 Jan–Dec 2013 Book- to-build, R-12, % Months of production

Sweden 31.9 29.9 108 12 Norway 14.2 13.1 104 9 Finland 6.0 6.8 89 10 Poland 10.0 8.3 97 6 Czech Republic 4.6 3.2 96 11 UK 19.0 10.4 125 19 USA Building 35.2 30.8 111 16 USA Civil 26.0 11.5 154 26 Total 147.4 114.2 114 15

9 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 10

40 80 120 160 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Construction

Income statement

10

Revenue Operating margin

Revenue, R-12, SEK bn February 12, 2015 Skanska Year-end Report 2014

SEK bn Jan–Dec 2014 Jan–Dec 2013

Revenue

128.9

119.1 Gross income

10.3

9.3 Selling and administrative expenses

  • 5.8
  • 5.5

Operating income

4.5

3.9 Gross margin, %

8.0

7.8 Selling and administrative expenses, %

  • 4.5
  • 4.6

Operating margin, %

3.5

3.3

Operating margin, R-12, %

Latin American operations excluded from 1/1 2013

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SLIDE 11

Construction

Income statement

11

Operating income, SEK M Operating margin, %

Jan–Dec 2014 Jan–Dec 2013 Jan–Dec 2014 Jan–Dec 2013

Sweden 1,327 1,174 4.5 4.0 Norway 414 390 3.0 2.7 Finland 241 179 3.6 3.0 Poland 468 351 4.5 4.0 Czech Republic 47

  • 299

1.0 neg UK 454 427 3.0 3.4 USA Building 484 476 1.5 1.6 USA Civil 1,073 1,182 6.4 8.4 Total 4,512 3,880 3.5 3.3

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 12

2 4 6 8 10

  • 15
  • 10
  • 5

5 10

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Revenue Operating margin

Operating margin, R-12, %

Residential Development

Income statement, segment reporting

12 February 12, 2015 Skanska Year-end Report 2014

SEK M Jan–Dec 2014 Jan–Dec 2013

Revenue 9,558 9,234 Gross income 1,204 1,055 Selling and administrative expenses

  • 521
  • 485

Income from joint ventures – 3 Operating income 683 573 Gross margin, % 12.6 11.4 Selling and administrative expenses, %

  • 5.5
  • 5.3

Operating margin, % 7.1 6.2

Revenue, R-12, SEK bn

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SLIDE 13

Residential Development

Income statement

13

Operating income, SEK M1 Operating margin, %1

Jan–Dec 2014 Jan–Dec 2013 Jan–Dec 2014 Jan–Dec 2013

Sweden 427 331 8.2 7.1 Norway 115 111 8.6 6.7 Finland 92 127 4.8 5.8 Nordics 634 569 7.5 6.7 Central Europe2 49 4 4.4 0.5 Total 683 573 7.1 6.2

1 Development gain only, construction margin reported under Construction 2 Czech Republic, Poland and the UK

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 14

1,000 2,000 3,000 4,000 5,000

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Homes

Residential Development

Homes started and sold, R-12

14

Sold Started

February 12, 2015 Skanska Year-end Report 2014

Homes started Homes sold

Jan–Dec 2014 Jan–Dec 2013 Jan–Dec 2014 Jan–Dec 2013

2,846 3,118 3,274 3,391

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SLIDE 15

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

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Homes

Unsold completed Unsold under construction Sold under construction

Residential Development

Homes in production

15

Homes in production Of which sold, % Unsold completed homes

Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013

4,879 5,237 72 67 353 405

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 16

Commercial Property Development

Income statement, segment reporting

16

SEK M Jan–Dec 2014 Jan–Dec 2013

Revenue 10,228 6,206 Gross income 2,191 1,547 Selling and administrative expenses

  • 526
  • 495

Income from joint ventures and associated companies 35 16 Operating income 1,700 1,068

  • f which gain from divestments
  • f properties1

1,989 1,415

  • f which write downs/reversal
  • f write downs

43

  • 13

1 Additional gain included in eliminations 279 112

Development gain only, construction margin reported under Construction

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 17

2 4 6 8 10

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Revenue from divestments, R-12 Operating income from divestments, R-12 SEK bn

Commercial Property Development

Divestments

Sale of commercial properties

SEK M Sales price Capital gain

Year-to-date 9,783 1,989

17 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 18

Commercial Property Development

Carrying amounts and market values

18

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

Completed projects 3.1 3.1 3.8 95 100 Undeveloped land and development properties 5.3 5.3 5.6 Ongoing projects 6.6 15.1 18.9 47 45 Total 15.0 23.4 28.3

  • f which ongoing projects sold

according to segment reporting 1.6 2.7 3.4 4,000 8,000 12,000 16,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SEK M

Ongoing projects, carrying amount upon completion

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 19

50 100 150 200 250 300 350 400

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

Leasing, quarterly Leasing, R-12

000 sq m

Commercial Property Development

Leasing

19

New leases of space were signed for 287,000 sq m in 2014

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 20

Infrastructure Development

Income statement

20

SEK M Jan–Dec 2014 Jan–Dec 2013

Revenue 163 87 Gross income

  • 46
  • 111

Selling and administrative expenses

  • 128
  • 134

Income from joint ventures 637 646 Operating income 463 401

  • f which gains from divestments
  • f shares in projects

127 118

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 21

Infrastructure Development

Project portfolio

21

4.9 0.3

  • 0.4

0.5 5.3 1 2 3 4 5 6

Dec 31, 2013 Derisk/ Time value Investments/ Divestments Currency effect Dec 31, 2014

SEK bn Dec 31, 2014 Dec 31, 2013

Present value of cash flow from projects 6.5 5.7 Net present value of projects 5.3 4.9 Carrying amount

  • 3.2
  • 3.1

Unrealized development gain 2.1 1.8 Cash flow hedge 1.8 1.0 Effect in unrealized Equity 3.9 2.8

February 12, 2015 Skanska Year-end Report 2014

Net present value of projects, SEK bn

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SLIDE 22

Group

Income statement

22

SEK M Jan–Dec 2014 Jan–Dec 2013

Operating income from business streams 7,358 5,922 Central1

  • 1,608
  • 732

Eliminations 16

  • 46

Operating income 5,766 5,144 Net financial items

  • 293
  • 241

Income after financial items 5,473 4,903 Taxes

  • 1,365
  • 1,430

Profit for the period 4,108 3,473 Earnings per share, SEK 9.98 8.43 Tax rate, % 25 29

February 12, 2015 Skanska Year-end Report 2014

1 Latin American operations included from 1/1 2013

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SLIDE 23
  • 6
  • 4
  • 2

2 4 6 8 10

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 SEK bn Cash flow from business

  • perations,

quarterly R-12

Group

Cash flow

23

SEK bn Jan–Dec 2014 Jan–Dec 2013

Cash flow from operations 3.7 5.0 Net strategic investments 0.1

  • 0.2

Dividend etc.

  • 2.9
  • 2.8

Cash flow before change in interest-bearing receivables and liabilities 0.9 2.0

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 24

2 4 6 8 10 12 14 16 18 5 10 15 20 25

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 % SEK bn

Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working capital, end of Q4, SEK bn

Construction

Free working capital

24 February 12, 2015 Skanska Year-end Report 2014

Latin American operations excluded from 1/1 2013

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SLIDE 25

2 4 6 8 10 12 14

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Operating net financial assets/liabilities, SEK bn

Group

Financial position

25 February 12, 2015 Skanska Year-end Report 2014

SEK bn Dec 31 2014 Dec 31 2013

Total assets 92.8 87.7 Equity attributable to equity holders 21.4 21.4 Interest-bearing net receivables (+)/net debt (-) 0.7 1.0 Operating net financial assets/liabilities 8.4 6.7 Capital employed, closing balance 36.8 35.4 Equity/assets ratio, % 23.1 24.4

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SLIDE 26

Group

Change in financial position

26

SEK bn Jan–Dec 2014 Jan–Dec 2013

Opening balance interest-bearing net receivables 1.0

  • 2.0

Cash flow before change in interest-bearing receivables and liabilities 0.9 2.0 Change in pension liability

  • 2.0

0.6 Other changes 0.8 0.4 Change in interest-bearing net receivables

  • 0.3

3.0 Closing balance interest-bearing net receivables/net debt 0.7 1.0 Pension liability, net 4.4 2.9 Interest-bearing debt co-ops 3.2 2.8 Operating net financial assets/liabilities 8.4 6.7

February 12, 2015 Skanska Year-end Report 2014

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SLIDE 27

Group

Change in equity

27 February 12, 2015 Skanska Year-end Report 2014

SEK bn Jan–Dec 2014 Jan–Dec 2013

Opening balance 21.4 19.4 Dividend to shareholders

  • 2.6
  • 2.5

Other changes in equity not included in total

comprehensive income for the year

  • 0.1

0.0 Profit for the period 3.9 3.8 Other comprehensive income Translation differences 1.5

  • 0.4

Effects of remeasurements of pensions

  • 1.8

0.5 Effects of cash flow hedges

  • 0.8

0.5 Closing balance 21.4 21.4

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SLIDE 28
  • 8
  • 6
  • 4
  • 2

2 4 6 8 10

Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4

SEK bn Investments, quarterly Divestments, quarterly Net investments, R-12

Group

Investments and capital employed

28 February 12, 2015 Skanska Year-end Report 2014

SEK bn Dec 31 2014 Dec 31 2013

Capital employed in: Residential Development 10.4 10.8 Commercial Property Development 15.0 13.5 Infrastructure Development 1.9 2.0 Total in Development Streams 27.3 26.3

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SLIDE 29

Market outlook

Macro perspective − Geopolitical situation − Oil prices − Inflation and interest rates

February 12, 2015 Skanska Year-end Report 2014 29

New Ludgate, London, UK

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SLIDE 30

Market outlook

Construction

30

− Overall a positive market outlook − Nordic countries

− Strong building market in Sweden − Civil market stable. Norway very strong, Sweden stable, Finland weak

− Other European countries

− Commercial building market continues to improve in Poland − UK market strong − Czech Republic improving

− North America

− The U.S. continues to be a good market, but with fierce competition

February 12, 2015 Skanska Year-end Report 2014

Flemingsbergsdalen, Stockholm, Sweden

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SLIDE 31

Milíčovský háj, Prague, Czech Republic

− Nordic countries

− Sweden strong − Norway stable − Finland weak

− Central Europe

− Poland stable, volumes increasing − Czech Republic stable, prices increasing

Market outlook

Residential Development

31 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 32

Kapelanka 42, Kraków, Poland

− General

− Tenants: Stable vacancy rates − Investors: Demand for green properties with stable tenants, valuations attractive

− Nordic countries

− High interest from investors and low vacancy rates in Sweden

− Central Europe

− High demand in Poland and improving in other parts of Central Europe

− North America

− Strong investor appetite and good tenant demand

Market outlook

Commercial Property Development

32 February 12, 2015 Skanska Year-end Report 2014

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SLIDE 33

New Karolinska Solna, Stockholm, Sweden

Market outlook

Infrastructure Development

33 February 12, 2015 Skanska Year-end Report 2014

− All countries

− Good potential for PPPs in the U.S., but competition is considerable − Norwegian market shows signs

  • f improvement

− Thin pipeline in the other markets

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SLIDE 34

34 February 12, 2015 Skanska Year-end Report 2014