Year- end report 2019 We build for a better society. Bank of - - PowerPoint PPT Presentation

▶
year end report 2019
SMART_READER_LITE
LIVE PREVIEW

Year- end report 2019 We build for a better society. Bank of - - PowerPoint PPT Presentation

Oct 21, 2023 261 likes •553 views

Year- end report 2019 We build for a better society. Bank of America Tower Houston, Texas, USA Year-end report 2019 Earnings per share SEK 15.46 (9.55) Operating margin in Construction 2.4% (0.7) ROCE in Project Development

slide-1
SLIDE 1

We build for a better society.

Bank of America Tower Houston, Texas, USA

Year- end report 2019

slide-2
SLIDE 2

− Earnings per share SEK 15.46 (9.55) − Operating margin in Construction 2.4% (0.7) − ROCE in Project Development 10.3% (12.0) − Return on Equity 21.4% (14.1) − Significant performance improvement in the Construction operations and strong value creation in Project Development − Strong balance sheet and supportive market

  • utlook

− Investment opportunities in Project Development − Proposed dividend SEK 6.25 (6.00)

Year-end report 2019

Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 2 February 7, 2020

slide-3
SLIDE 3

− Revenue SEK 159.6 bn (157.9) − Order bookings SEK 145.8 bn (151.7)

− Book-to-build 91% − Order backlog SEK 185.4 bn (192.0)

− Operating income SEK 3,772 M (1,099)

− Operating margin 2.4% (0.7)

− Underlying profitability improving − Selective bidding, commercial focus and cost efficiency

Construction

Light rail extension, Shoreline – Lynnwood, USA Skanska Year-end report 2019 3 February 7, 2020

slide-4
SLIDE 4

− Revenue SEK 12.5 bn (10.7)

− 3,853 (3,653) homes sold − 3,407 (4,480) homes started

− Operating income SEK 1,195 M (1,505)

− Operating margin 9.6% (14.0)

− ROCE 9.8% (11.4) − Well-diversified portfolio in various segments and geographies − Swedish market gradually improving

Residential Development

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 4 February 7, 2020

slide-5
SLIDE 5

− Operating income SEK 3,287 M (3,069)

− Gain on sale SEK 4,421 M (4,066), including JVs − All-time-high gain on sale

− ROCE 10.5% (12.3) − 42 ongoing projects

− SEK 27.7 bn in investment value upon completion − 59% occupancy rate − 56% completion rate − 15 projects started

− 421,000 sq m leased (511,000) − Strong interest from tenants and investors

Commercial Property Development

9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 5 February 7, 2020

slide-6
SLIDE 6

Light rail extension, Shoreline – Lynnwood, USA

Construction

Order situation

50 100 150 200 250

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4

SEK bn

Order backlog Order bookings, R-12 Revenue, R-12 Order bookings per quarter

Book-to-build 91%

SEK bn Jan–Dec 2019 Jan–Dec 2018

Revenue 159.6 157.9 Order bookings 145.8 151.7 Order backlog 185.4 192.0

Skanska Year-end report 2019 6 February 7, 2020

slide-7
SLIDE 7

Construction

Order bookings

SEK bn Jan–Dec 2019 Jan–Dec 2018 Book- to-build, % Months of production

Nordics 59.4 65.2 100 13

  • f which Sweden

37.6 35.9 107 13 Europe 19.0 30.6 60 9 USA 67.4 55.9 98 17 Total 145.8 151.7 91 14

Light rail extension, Shoreline – Lynnwood, USA

Skanska Year-end report 2019 7 February 7, 2020

slide-8
SLIDE 8
  • 30

30 60 90 120 150 180

  • 1

1 2 3 4 5 6

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4

Construction

Income statement

Revenue Operating margin

Operating margin, R-12, % Revenue, R-12, SEK bn

SEK bn Jan–Dec 2019 Jan–Dec 2018

Revenue 159.6 157.9 Gross income 10.4 8.0 Selling and administrative expenses

  • 6.7
  • 7.0

Operating income 3.8 1.1 Gross margin, % 6.5 5.1 Selling and administrative expenses, %

  • 4.2
  • 4.4

Operating margin, % 2.4 0.7

Light rail extension, Shoreline – Lynnwood, USA

Skanska Year-end report 2019 8 February 7, 2020

slide-9
SLIDE 9

Construction

Income statement

Operating income, SEK M Operating margin, %

Jan–Dec 2019 Jan–Dec 2018 Jan–Dec 2019 Jan–Dec 2018

Nordics 2,299 2,177 3.9 3.8

  • f which Sweden

1,330 1,617 3.8 4.6 Europe 473

  • 421

1.5 neg USA 1,000

  • 657

1.5 neg Total 3,772 1,099 2.4 0.7

Light rail extension, Shoreline – Lynnwood, USA

Skanska Year-end report 2019 9 February 7, 2020

slide-10
SLIDE 10

5 10 15 20 5 10 15 20

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4

Residential Development

Income statement, segment reporting

Revenue Operating margin

Operating margin, R-12, % Revenue, R-12, SEK bn

SEK M Jan–Dec 2019 Jan–Dec 2018

Revenue 12,483 10,739 Gross income 1,986 2,181 Selling and administrative expenses

  • 791
  • 676

Operating income 1,195 1,505 Gross margin, % 15.9 20.3 Selling and administrative expenses, %

  • 6.3
  • 6.3

Operating margin, % 9.6 14.0

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 10 February 7, 2020

slide-11
SLIDE 11

Residential Development

Income statement

Operating income, SEK M Operating margin, %

Jan–Dec 2019 Jan–Dec 2018 Jan–Dec 2019 Jan–Dec 2018

Nordics 1,034 1,358 9.2 14.2

  • f which Sweden

675 752 10.3 15.5 Europe 161 147 13.6 12.6 Total 1,195 1,505 9.6 14.0

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 11 February 7, 2020

slide-12
SLIDE 12

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

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4

Homes, R-12

Sold Started

Residential Development

Homes started and sold

Homes started Homes sold

Jan–Dec 2019 Jan–Dec 2018 Jan–Dec 2019 Jan–Dec 2018

3,407 4,480 3,853 3,653

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 12 February 7, 2020

slide-13
SLIDE 13

10 20 30 40 50 60 70 80 90 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Sold under construction Unsold under construction Unsold completed Sales rate IP

Residential Development

Homes in production

Homes

Homes in production Of which sold, % Unsold completed homes

Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018

7,130 7,539 70 68 134 314

%

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 13 February 7, 2020

slide-14
SLIDE 14

Commercial Property Development

Income statement, segment reporting

SEK M Jan–Dec 2019 Jan–Dec 2018

Revenue 17,850 16,271 Gross income 4,101 3,936 Selling and administrative expenses

  • 960
  • 928

Income from joint ventures and associated companies 146 61 Operating income 3,287 3,069

  • f which gain from divestments
  • f properties1

4,275 4,005

  • f which write downs/reversal
  • f write downs
  • 89
  • 107

1 Additional gain included in eliminations 240 321

9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 14 February 7, 2020

slide-15
SLIDE 15

Commercial Property Development

Unrealized and realized gains, segment reporting

1 2 3 4 5 6 7 8 9 10

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4

SEK bn

Unrealized gains in: Land Ongoing projects at completion Completed projects Realized gains, R-12 9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 15 February 7, 2020

slide-16
SLIDE 16

65% 89% 92% 19% 61% 47% 0% 21% 8% 0% 19% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 Total investment at completion, unsold ongoing projects Completed unsold projects Weighted Occupancy rate, %

Commercial Property Development

Completion profile, unsold projects

SEK bn %

9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 16 February 7, 2020

slide-17
SLIDE 17

Commercial Property Development

Leasing

10 20 30 40 50 60 70 100 200 300 400 500 600

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Leasing, R-12 Occupancy rate, ongoing projects Degree of completion, ongoing projects

000 sq m %

9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 17 February 7, 2020

slide-18
SLIDE 18

Group

Income statement

SEK M Jan–Dec 2019 Jan–Dec 2018

Operating income from business streams 8,254 5,673 Central

  • 388
  • 780

Eliminations

  • 38
  • 66

Operating income 7,828 4,827 Net financial items

  • 103

36 Income after financial items 7,725 4,863 Taxes

  • 1,353
  • 934

Profit for the period 6,372 3,929 Earnings per share, SEK 15.46 9.55 Tax rate, % 18 19

Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 18 February 7, 2020

slide-19
SLIDE 19

Group

PPP portfolio

SEK bn Dec 31, 2019 Dec 31, 2018

Present value of cash flow from projects 4.9 4.7 Net present value of projects 3.8 3.6 Carrying amount

  • 2.5
  • 2.5

Unrealized development gain 1.3 1.1 Cash flow hedge 0.3 0.3 Effect in unrealized Equity 1.6 1.4

Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 19 February 7, 2020

slide-20
SLIDE 20

Bank of America Tower, Houston, Texas, USA

Group

Cash flow

  • 6
  • 4
  • 2

2 4 6 8 10

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Cash flow from business

  • perations,

quarterly Rolling 12 months

SEK bn

SEK bn Jan–Dec 2019 Jan–Dec 2018

Cash flow from operations 3.8 7.4 Dividend etc.

  • 2.5
  • 3.5

Cash flow before change in interest- bearing receivables and liabilities 1.3 3.9

Skanska Year-end report 2019 20 February 7, 2020

slide-21
SLIDE 21

Construction

Free working capital

3 6 9 12 15 18 5 10 15 20 25 30

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 %

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

SEK bn

Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 21 February 7, 2020

slide-22
SLIDE 22

Bank of America Tower, Houston, Texas, USA

Group

Investments, divestments and capital employed

  • 10
  • 8
  • 6
  • 4
  • 2

2 4 6 8 10

Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Divestments, quarterly Investments, quarterly Net investments, R-12

SEK bn

SEK bn Dec 31 2019 Dec 31 2018

Capital employed in: Residential Development 13.0 13.6 Commercial Property Development 34.5 26.7 Total in Project Development 47.4 40.3

Skanska Year-end report 2019 22 February 7, 2020

slide-23
SLIDE 23

Group

Financial position

SEK bn Dec 31 2019 Dec 31 2018

Total assets 126.0 116.3 Equity attributable to equity holders 32.9 29.3 Interest-bearing net receivables (+)/net debt (-)

  • 4.9

3.2

  • Adj. interest-bearing net receivables (+)/net debt (-)

3.2 2.1 Capital employed, closing balance 55.9 46.2 Equity/assets ratio, % 26.2 25.2

  • 10
  • 8
  • 6
  • 4
  • 2

2 4 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 23 February 7, 2020

slide-24
SLIDE 24

High activity in our markets but fierce competition Nordics

− Mixed building market and strong civil market in Sweden and Norway − Finland stable, but slowdown in residential building market

Europe

− Brexit impacts the UK non-residential and civil market − Central Europe stable, cost escalation causing postponement

  • f new projects

USA

− The US continues to be a good market, but with fierce competition − Funding at state level healthy in our markets

Market outlook

Construction

Outlook compared to previous quarter Weaker Unchanged Improved

Light rail extension, Shoreline – Lynnwood, USA

Skanska Year-end report 2019 24 February 7, 2020

slide-25
SLIDE 25

High construction costs and long zoning processes in all our markets Nordics

− Slightly improving Swedish market − Stable market in Norway − Slowdown in Finland

Europe

− Stable markets in Warsaw, Prague and Cracow

Market outlook

Residential Development

Outlook compared to previous quarter Weaker Unchanged Improved

Solseglet, Malmö, Sweden

Skanska Year-end report 2019 25 February 7, 2020

slide-26
SLIDE 26

High construction costs and long zoning processes in all our markets Nordics

− Investor appetite remains strong, but more selective − Low vacancy rates and high rents in Sweden

Europe

− Strong demand from tenants and investors in Central Europe

USA

− Investor appetite remains strong but yields likely bottoming out − Good tenant demand

Market outlook

Commercial Property Development

Outlook compared to previous quarter Weaker Unchanged Improved

9000 Wilshere, Los Angeles, USA

Skanska Year-end report 2019 26 February 7, 2020

slide-27
SLIDE 27

Group

Summary

− Significant performance improvements in Construction, and potential to improve even further − High market activity in many of our geographies and segments, but fierce competition − Underlying operating margin in Residential Development at a solid 10% and a well-diversified portfolio − Attractive Commercial Property Development portfolio − Strong balance sheet − Significant opportunities for investments in Project Development

Bank of America Tower, Houston, Texas, USA

Skanska Year-end report 2019 27 February 7, 2020

slide-28
SLIDE 28

Skanska Year-end report 2019 28 February 7, 2020