Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q4 2023 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, Feb 9, 2024
Slide 1: Fourth quarter report 2023
George Washington Bridge New York and New Jersey USA Fourth quarter report 2023 We build for a better society
Slide 2: Fourth quarter report 2023 highlights
George Washington Bridge New York and New Jersey USA Fourth quarter report 2023 • Strong Construction performance. • Operating margin 4.4% (5.4) • Order backlog of SEK 229.6 bn (229.8) • Property asset values impacted by weak markets. • Impairments/change in market values of SEK -2.0 bn • ROCE in Pr
Slide 3: Construction
Slussen Stockholm Sweden Construction • Revenue SEK 41.6 bn (42.7) • Order bookings SEK 44.1 bn (51.6) – Book-to-build 103% – Order backlog SEK 229.6 bn (229.8) • Operating income SEK 1,843 M (2,305) – Operating margin 4.4% (5.4) • Solid performance continues • Strong order intake and order backlog
Slide 4: Residential Development
Powerhouse Lade Trondheim Norway Residential Development • Revenue SEK 1.9 bn (0.8) – 384 (155) homes sold – 339 (671) homes started • Operating income SEK -502 M (-16) – Impairment charges SEK 0.5 bn • ROCE -7.0 (6.8) • Lower-than-normal sales volumes in all markets except for Central Europe • BoKl
Slide 5: Commercial Property Development
9000 Wilshire Los Angeles USA Commercial Property Development • Operating income SEK -932 M (1,350) – Gain on sale SEK 598 M (1,516) – Impairment charges SEK 1.4 bn – ROCE -2.6% (8.7) • 23 ongoing projects – SEK 28.7 bn total investment – Three projects started in Q4 • 22 completed projects – SEK 9.
Slide 6: Investment Properties
StudioTerrass Hyllie phase 2Malmö Investment Properties Warsaw Sweden Poland • Two properties acquired in the fourth quarter: Sthlm 04 in Stockholm and Hyllie Terrass in Malmö • Results impacted by a reduction of fair market values of SEK 0.2 bn • Economic occupancy rate at 91 percent • Targeting a
Slide 7: Construction: Order bookings
Slussen Stockholm Sweden Construction Order bookings SEK bn % 300 140 250 120 100 200 80 150 60 Order backlog 100 Order bookings, R-12 40 50 Order bookings per quarter 20 Revenue, R-12 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Book-to-build %, R-12 2019 2020 2021 2022 2023 SEK
Slide 8: Construction: Order bookings by region
Slussen Stockholm Sweden Construction Order bookings Book-to- Oct-Dec Oct-Dec build, % Months of SEK bn 2023 2022 (R-12 months) production Nordics 10.7 18.2 109 15 of which Sweden 6.0 8.0 86 11 Europe 6.4 4.0 73 16 USA 27.0 29.4 110 21 Total 44.1 51.6 103 18 2/9/2024 Skanska Q4 report 2023 8
Slide 9: Construction: Income statement
Slussen Stockholm Sweden Construction Income statement Operating margin, R-12, % Revenue, R-12, SEK bn 6 200 Revenue 5 150 4 3 100 2 Operating margin 50 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK bn 2023 2022 2023 20
Slide 10: Construction: Operating income by region
Slussen Stockholm Sweden Construction Income statement Operating income, SEK M Operating margin, % Oct-Dec Oct-Dec Oct-Dec Oct-Dec 2023 2022 2023 2022 Nordics 692 966 4.5 5.9 of which Sweden 383 654 4.5 6.7 Europe 77 286 1.2 3.8 USA 1,074 1,054 5.5 5.5 Total 1,843 2,305 4.4 5.4 2/9/2024 Skanska Q4 r
Slide 11: Residential Development: Income statement, segment reporting
Powerhouse Lade Trondheim Norway Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 Operating margin 10 15 0 10 -10 -20 5 -30 Revenue 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Including reside
Slide 12: Residential Development: Income statement
Powerhouse Lade Trondheim Norway Residential Development Income statement Operating income, SEK M Operating margin, % Oct-Dec 2023 Oct-Dec 2022 Oct-Dec 2023 Oct-Dec 2022 Nordics -480 -67 -41.2 -13.3 of which Sweden -165 -90 -27.6 neg Europe -21 52 -3.0 18.6 Total -502 -16 -26.9 -2.0 2/9/2024 Skanska
Slide 13: Residential Development: Homes started and sold
Powerhouse Lade Trondheim Norway Residential Development Homes started and sold Homes, R-12 5,000 4,500 4,000 Started 3,500 3,000 2,500 2,000 1,500 1,000 500 Sold 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Including residential Rentals until Q4 2020 Homes
Slide 14: Residential Development: Homes in production
Powerhouse Lade Trondheim Norway Residential Development Homes in production Homes % 8,000 100 7,000 90 80 6,000 70 5,000 60 4,000 50 3,000 40 30 2,000 20 1,000 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Sold under construction Unsold under constructi
Slide 15: Commercial Property Development: Income statement
9000 Wilshire Los Angeles USA Commercial Property Development Income statement, segment reporting Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2023 2022 2023 2022 Revenue 2,832 3,443 5,331 14,276 Gross income -652 1,562 -416 3,857 Selling and administrative expenses -230 -371 -895 -999 Income from JV's and
Slide 16: Unrealized and realized gains
9000 Wilshire Los Angeles USA Commercial Property Development Unrealized and realized gains, segment reporting SEK bn 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Unrealized gains in: Land Ongoing projects at comp
Slide 17: Completion profile and unsold projects
9000 Wilshire Los Angeles USA Commercial Property Development Completion profile and unsold projects SEK bn % 12 100 11 90 80 10 74 69 80 9 70 8 55 60 7 6 50 5 48 40 4 18 30 3 15 20 2 0 0 0 0 1 0 0 0 0 10 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 2026 2027 Completed unsold projects
Slide 18: Leasing Commercial Properties
9000 Wilshire Los Angeles USA Commercial Property Development Leasing Commercial Properties 000 sq m % 550 100 500 90 450 80 400 70 350 60 300 50 250 40 200 150 30 100 20 50 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Leasing, R-12 Economic occupancy r
Slide 19: Investment Properties: Income statement
Hyllie Terrass Malmö Sweden Investment Properties Income statement Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2023 2022 2023 2022 Revenue 56 20 186 40 Operating net 42 15 137 30 Selling and administrative expenses -6 -1 -9 -2 Change in property value -165 86 -190 112 Income from joint ventures and associ
Slide 20: Group Income Statement
George Washington Bridge New York and New Jersey USA Group Income Statement Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2023 2022 2023 2022 Operating income from business streams 281 3,739 2,943 9,824 Central 607 -160 290 -339 Eliminations 69 -49 -3 -187 Operating income 957 3,530 3,231 9,297 Net financia
Slide 21: Group Cash flow
George Washington Bridge New York and New Jersey USA Group Cash flow SEK bn 20 15 10 Cash flow from 5 business operations, 0 quarterly -5 Rolling 12 months -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK bn 2023 2022 2023 2
Slide 22: Construction: Free working capital
Slussen Stockholm Sweden Construction Free working capital SEK bn % 35 21 30 18 25 15 20 12 15 9 10 6 5 3 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working cap
Slide 23: Investments, divestments and capital employed
George Washington Bridge New York and New Jersey USA Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly Divestments, 0 quarterly -5 Net investments, -10 R-12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Dec 31, Dec 31,
Slide 24: Available funds and maturity profile
George Washington Bridge New York and New Jersey USA Group Available funds: SEK 27.8 bn, o/w unutilized credit facilities SEK 9.9 bn Central funding Maturity profile 3.0 2.5 2.0 47% 53% SEK8.8bn 1.5 1.0 0.5 0.0 2024 2025 2026 2027 2028 2029 2030 Bilateral loans Bonds Bilateral loans Bonds (MTN) 2/9/
Slide 25: Financial position
George Washington Bridge New York and New Jersey USA Group Financial position Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn 20 15 10 5 0 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Dec 31, Dec 31, SEK bn 2023 2022 Total assets 155.2 15
Slide 26: Market outlook
George Washington Bridge New York and New Jersey USA Market outlook Construction • Mostly in line with previous expectations. • Improved outlook for the civil market in Norway, robust spending in the infrastructure, energy and water sectors expected • USA remains the strongest market Residential Dev
Slide 27: Summary
George Washington Bridge New York and New Jersey USA Group Summary • Performance in the fourth quarter – Construction – delivers strong results – Residential Development – lower-than-normal sales volumes – Commercial Property Development – four properties divested in Sweden and the US – Investment P
Slide 28: Skanska Q4 report 2023
2/9/2024 Skanska Q4 report 2023 28