Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q2 2024 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, Jul 19, 2024
Slide 1: Second quarter report 2024
Studio B Warsaw Poland Second quarter report 2024 We build for a better society
Slide 2: Second quarter report 2024 highlights
Studio B Warsaw Poland Second quarter report 2024 • Solid performance • Construction – Operating margin in line with target. Strong order intake. • Residential Development – Increasing sales volume from low level. • Commercial Property Development – Five divestments recorded. • Investment Properties
Slide 3: Construction
Slussen Stockholm Sweden Construction • Revenue SEK 43.6 bn (40.6) • Order bookings SEK 60.7 bn (63.2) – Book-to-build 114%, R-12 – Order backlog SEK 267.6 bn (250.3) • Operating income SEK 1,542 M (1,391) – Operating margin 3.5% (3.4) • Strong order intake in the USA, building and civil • Group ord
Slide 4: Residential Development
Powerhouse Lade Trondheim Norway Residential Development • Revenue SEK 2.2 bn (1.6) – 515 (343) homes sold – 37 (241) homes started • Operating income SEK -11 M (49) • ROCE -5.2 (0.2) • Increased sales volumes in the Nordics, good level of activity in Central Europe • BoKlok losses of SEK -167 M • O
Slide 5: Commercial Property Development
Commercial Property Development • Operating income SEK 1,067 M (-15) – Gain on sale SEK 1,191 M (171) – ROCE 0.1% (3.1) • 19 ongoing projects – SEK 25.8 bn total investment • 23 completed projects – SEK 11.3 bn total investment – 77% leased • Five divestments, four external and one internal • Leasin
Slide 6: Investment Properties
Studio phase 2 Warsaw Poland Investment Properties • First acquisition recorded in Gothenburg – Citygate • Operating income of SEK 108 M • Economic occupancy rate at 87 percent • Total portfolio property value SEK 7.7 bn • Targeting a high quality, sustainable, office portfolio of SEK 12-18 bn, to g
Slide 7: Construction: order bookings
Construction Order bookings SEK bn % 300 140 250 120 100 200 80 150 60 Order backlog 100 Order bookings, R-12 40 50 20 Order bookings per quarter 0 0 Revenue, R-12 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 SEK bn Apr-Jun 2024 Apr-Jun 2023 Rolling 12 months
Slide 8: Construction: order bookings by region
Construction Order bookings Apr-Jun Apr-Jun Book-to- Months of SEK bn 2024 2023 build, % production Nordics 14.0 31.7 82 15 of which Sweden 8.5 8.9 89 12 Europe 4.5 7.6 68 15 USA 42.1 23.9 151 24 Total 60.7 63.2 114 20 7/19/2024 Skanska Q2 report 2024 8
Slide 9: Construction income statement
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Apr-Jun Apr-Jun Rolling 12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 43.6 40.6
Slide 10: Construction income statement by region
Construction Income statement Operating income, SEK M Operating margin, % Apr-Jun Apr-Jun Apr-Jun Apr-Jun 2024 2023 2024 2023 Nordics 496 549 3.3 3.7 of which Sweden 309 251 4.0 3.0 Europe 231 189 3.8 2.6 USA 814 654 3.6 3.5 Total 1,542 1,391 3.5 3.4 7/19/2024 Skanska Q2 report 2024 10
Slide 11: Residential Development income statement
Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 10 15 0 Revenue 10 -10 -20 5 -30 Operating margin 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Including residential rentals until Q4 2020 Apr-J
Slide 12: Residential Development income statement by region
Residential Development Income statement Operating income, SEK M Operating margin, % Apr-Jun Apr-Jun Apr-Jun Apr-Jun 2024 2023 2024 2023 Nordics 0 4 0.0 0.3 of which Sweden -51 -3 -6.7 -0.8 Europe -10 45 -2.5 9.4 Total -11 49 -0.5 2.9 7/19/2024 Skanska Q2 report 2024 12
Slide 13: Residential Development: homes started and sold
Residential Development Homes started and sold Homes, R-12 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Sold 1,500 1,000 500 Started 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Including residential rentals until Q4 2020 Homes started Homes sold Apr-Jun Apr-Ju
Slide 14: Residential Development: homes in production
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Sold under construction Unsold under construction Unsold completed Sales rate (i
Slide 15: Commercial Property Development income statement
Commercial Property Development Income statement, segment reporting Apr-Jun Apr-Jun R12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 6,293 857 10,863 5,331 Gross income 1,259 233 581 -416 Selling and administrative expenses -190 -247 -836 -895 Income from JV's and associated companies -1 -1 -53 -54
Slide 16: Unrealized and realized gains
Commercial Property Development Unrealized and realized gains, segment reporting SEK bn 14 12 10 8 6 4 2 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Unrealized gains in: Land Ongoing projects at completion Completed projects Realized gains, R-12 Including r
Slide 17: Completion profile and unsold projects
Commercial Property Development Completion profile and unsold projects SEK bn % 12 100 75 80 90 10 69 80 70 8 52 55 60 6 50 40 4 30 33 20 2 0 10 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 2026 2027 Completed unsold projects Ongoing offices Ongoing residential rentals Economic occupancy r
Slide 18: Leasing Commercial Properties
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Leasing, R-12 Economic occupancy rate, ongoing projects Degree o
Slide 19: Investment Properties income statement
Investment Properties Income statement Apr-Jun Apr-Jun R12 Jan-Dec SEK M 2024 2023 months 2023 Revenue 72 45 242 186 Operating net 54 32 179 137 Selling and administrative expenses -4 -1 -11 -9 Change in property value 58 -25 -107 -190 Operating income 108 6 60 -62 Eonomic Leasable Rental value, occ
Slide 20: Group income statement
Studio B Warsaw Poland Group Income Statement Apr-Jun Apr-Jun R12 Jan-Dec SEK m 2024 2023 months 2023 Operating income from business streams 2,706 1,430 4,187 2,943 Central -159 -73 303 290 Eliminations 33 -27 92 -3 Operating income 2,580 1,331 4,583 3,231 Net financial items 146 133 693 601 Income
Slide 21: Group cash flow
Studio B Warsaw Poland Group Cash flow SEK bn 20 15 10 Cash flow from 5 business operations, 0 quarterly -5 Rolling 12 months -10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Apr-Jun Apr-Jun R12 Jan-Dec SEK bn 2024 2023 months 2023 Operating cash flow from ope
Slide 22: Construction free working capital
Construction Free working capital SEK bn % 35 21 30 18 25 15 20 12 15 9 10 6 5 3 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working capital, end of Q2, SEK bn 7
Slide 23: Investments, divestments and capital employed
Studio B Warsaw Poland Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly 0 Divestments, quarterly -5 Net investments, -10 R-12 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 SEK bn Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Slide 24: Available funds and maturity profile
Studio B Warsaw Poland Group Available funds: SEK 21.0 bn, o/w unutilized credit facilities SEK 9.5 bn Maturity profile Central funding 4.0 3.5 3.0 2.5 46% 54% SEK 10.5 bn 2.0 1.5 1.0 0.5 Bilateral loans 0.0 Bonds 2024 2025 2026 2027 2028 2029 2030 Bilateral loans Bonds (MTN) 7/19/2024 Skanska Q2 re
Slide 25: Group financial position
Studio B Warsaw Poland Group Financial position Adjusted interest-bearing net receivables(+)/net debt(-), SEK bn 20 15 10 5 0 -5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 Jun 30, Jun 30, Dec 31, SEK bn 2024 2023 2023 Total assets 161.5 157.0 155.2 Equity at
Slide 26: Market outlook
Studio B Warsaw Poland Market outlook Construction • USA remains the strongest market, both for the building and civil infrastructure segment • In the Nordics and Europe, mostly stable outlook for civil markets, more cautious on the building segment • Sectors like energy, industry and defense provid
Slide 27: Group summary
Studio B Warsaw Poland Group Summary • Solid performance in the second quarter • Construction – Operating margin in line with target. Strong order intake. • Residential Development – Increasing sales volume from low level. • Commercial Property Development – Five divestments recorded. • Investment P
Slide 28: Skanska Q2 report 2024
7/19/2024 Skanska Q2 report 2024 28