Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q1 2023 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, May 4, 2023
Slide 1: First quarter report 2023
Norton Folgate London UK First quarter report 2023 We build for a better society
Slide 2: First quarter report 2023
Norton Folgate London UK First quarter report 2023 • Mixed performance in Q1 2023 – Construction – delivering strong results – Residential Development – few homes sold and turnaround in BoKlok – Commercial Property Development – No transactions recorded – Investment Properties – No acquisitions comp
Slide 3: Construction
Purple Line Los Angeles USA Construction • Revenue SEK 37.5 bn (33.4) • Order bookings SEK 25.8 bn (30.0) – Book-to-build 99%, R-12 – Order backlog SEK 217.9 bn (207.6) • Operating income SEK 1,033 M (756) – Operating margin 2.8% (2.3) • Solid performance across geographies • Revenue growth and stro
Slide 4: Residential Development
Täby Park Stockholm Sweden Residential Development • Revenue SEK 0.6 bn (3.6) – 132 (879) homes sold – 288 (806) homes started • Operating income SEK -314 M (445) – Operating margin neg (12.4) • ROCE 2.0% (13.0), R-12 • Low market activity • Few homes sold and turnaround in BoKlok impacting results
Slide 5: Commercial Property Development
Port7 Prague Czech Republic Commercial Property Development • Operating income SEK -142 M (856) – Gain on sale SEK 46 M (1,072) • ROCE 5.6% (9.9), R-12 • 39 ongoing projects, of which 10 residential rentals (corresponding to 2,357 homes) – SEK 34.1 bn total investment – 34% economic occupancy rate /
Slide 6: Investment Properties
Epic Malmö Sweden Investment Properties • Targeting a high quality, sustainable office portfolio of SEK 12-18 bn – Strong stable cash flow – Value increase potential • No acquisitions completed in the first quarter • Leasing increasing portfolio occupancy rate to 93% 5/4/2023 Skanska Q1 report 2023
Slide 7: Construction: Order bookings
Purple Line Los Angeles USA Construction Order bookings SEK bn % 250 140 120 200 100 150 80 100 60 Order backlog 40 Order bookings, R-12 50 Order bookings per quarter 20 Revenue, R-12 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Book-to-build %, R-12 2019 2020 2021 2022 2023 SEK b
Slide 8: Construction: Order bookings by region
Purple Line Los Angeles USA Construction Order bookings Jan-Mar Jan-Mar Book-to- Months of SEK bn 2023 2022 build, % production Nordics 11.8 11.9 96 13 of which Sweden 7.0 8.6 93 11 Europe 2.6 5.5 84 17 USA 11.4 12.5 107 19 Total 25.8 30.0 99 16 5/4/2023 Skanska Q1 report 2023 8
Slide 9: Construction: Income statement
Purple Line Los Angeles USA Construction Income statement Operating margin, R-12, % Revenue, R-12, SEK bn 6 Revenue 180 160 5 140 4 120 100 3 Operating margin 80 2 60 40 1 20 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Jan-Mar Jan-Mar R12 Jan-Dec SEK bn 2
Slide 10: Construction: Income statement by region
Purple Line Los Angeles USA Construction Income statement Operating income, SEK M Operating margin, % Jan-Mar 2023 Jan-Mar 2022 Jan-Mar 2023 Jan-Mar 2022 Nordics 399 375 2.8 2.8 of which Sweden 181 172 2.3 2.3 Europe -5 -18 neg neg USA 638 399 3.7 2.7 Total 1,033 756 2.8 2.3 5/4/2023 Skanska Q1 repo
Slide 11: Residential Development: Income statement, segment reporting
Täby Park Stockholm Sweden Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 15 15 Revenue 10 10 5 5 Operating margin 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Including residential Rentals
Slide 12: Residential Development: Income statement
Täby Park Stockholm Sweden Residential Development Income statement Operating income, SEK M Operating margin, % Jan-Mar 2023 Jan-Mar 2022 Jan-Mar 2023 Jan-Mar 2022 Nordics -268 397 neg 12.3 of which Sweden -281 272 neg 13.1 Europe -46 48 neg 13.9 Total -314 445 neg 12.4 5/4/2023 Skanska Q1 report 20
Slide 13: Residential Development: Homes started and sold
Täby Park Stockholm Sweden 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 Sold 500 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Including residential Rentals until Q4 2020. Homes start
Slide 14: Residential Development: Homes in production
Täby Park Stockholm Sweden Residential Development Homes in production SEK bn % 9,000 100 8,000 90 7,000 80 6,000 70 60 5,000 50 4,000 40 3,000 30 2,000 20 1,000 10 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Sold under construction Unsold under construct
Slide 15: Commercial Property Development: Income statement
Port7 Prague Czech Republic Commercial Property Development Income statement, segment reporting Jan-Mar Jan-Mar R12 Jan-Dec SEK bn 2023 2022 months 2022 Revenue 267 4,840 9,703 14,276 Gross income 59 1,046 2,870 3,857 Selling and administrative expenses -198 -191 -1,005 -999 Income from JV's and ass
Slide 16: Unrealized and realized gains, segment reporting
Port7 Prague Czech Republic 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Unrealized gains in: Land Ongoing projects at comple
Slide 17: Completion profile, unsold projects
Port7 Prague Czech Republic Commercial Property Development Completion profile, unsold projects (excl. residential rentals) SEK bn % 10 100 9 80 90 8 71 80 7 70 6 60 5 50 36 4 40 3 18 22 30 2 7 20 7 0 0 1 0 0 0 0 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 2026 Total investments at
Slide 18: Leasing in the commercial property portfolio
Port7 Prague Czech Republic Commercial Property Development Leasing in the commercial property portfolio (excl. residential rentals) 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 202
Slide 19: Investment Properties: Income statement
Epic Malmö Sweden Investment Properties Income statement Jan-Mar Jan-Mar R12 Jan-Dec SEK M 2023 2022 months 2022 Revenue 41 0 81 40 Operating net 31 0 61 30 Selling and administrative expenses -1 -1 -3 -2 Change in property value 0 26 86 112 Income from joint ventures and associated companies 0 0 0
Slide 20: Group Income Statement
Norton Folgate London UK Group Income Statement Jan-Mar Jan-Mar R12 Jan-Dec SEK m 2023 2022 months 2022 Operating income from business streams 607 2,082 8,348 9,824 Central -159 -135 -363 -339 Eliminations -54 -95 -147 -187 Operating income 394 1,852 7,838 9,297 Net financial items 146 8 428 289 Inc
Slide 21: Group Cash flow
Norton Folgate London UK Group Cash flow SEK bn 20 15 10 Cash flow from business 5 operations, quarterly 0 Rolling 12 months -5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Jan-Mar Jan-Mar R12 Jan-Dec SEK bn 2023 2022 months 2022 Operating cash flow from opera
Slide 22: Construction: Free working capital
Purple Line Los Angeles USA Construction Free working capital SEK bn % 35 21 30 18 25 15 20 12 15 9 10 6 5 3 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working
Slide 23: Investments, divestments and capital employed
Norton Folgate London UK Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly Divestments, 0 quarterly -5 Net investments, R- -10 12 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Mar 31, Mar 31, 31 dec SEK bn 2023 2022 20
Slide 24: Available funds and maturity profile
Norton Folgate London UK Group Available funds: SEK 16.0 bn, o/w unutilized credit facilities SEK 6.2 bn Central funding SEK bn Maturity profile 2.0 13% 1.6 1.2 SEK 3.7 bn 0.8 87% 0.4 0.0 Green bilaterial loan 2023 2024 2025 2026 2027 Green bonds 5/4/2023 Skanska Q1 report 2023 24
Slide 25: Financial position
Norton Folgate London UK Group Financial position Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn 20 15 10 5 0 -5 -10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Mar 31, Mar 31, Dec 31, SEK bn 2023 2022 2022 Total assets 151.0 140.5 151.6 E
Slide 26: Market outlook
Norton Folgate London UK Market outlook Construction • Strong or stable for the USA and Nordics • Active sectors: civil infrastructure and social infrastructure • Material availability improved and material prices have leveled out Residential Development • Low activity in the housing market • Cost-o
Slide 27: Summary
Norton Folgate London UK Group Summary • Mixed performance in the first quarter – Construction – delivering strong results – Residential Development – few homes sold and turnaround in BoKlok – Commercial Property Development – No transactions recorded – Investment Properties – No acquisitions comple
Slide 28: Skanska Q1 report 2023
5/4/2023 Skanska Q1 report 2023 28