Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q2 2023 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, Jul 21, 2023
Slide 1: Second quarter report 2023
Nordøyvegen Møre and Romsdal county Norway Second quarter report 2023 We build for a better society
Slide 2: Second quarter report 2023 highlights
Nordøyvegen Møre and Romsdal county Norway Second quarter report 2023 • Record high order backlog in Q2 2023 – Construction – delivering strong results – Residential Development – low sales volumes – Commercial Property Development – solid leasing, low sales – Investment Properties – no acquisitions
Slide 3: Construction
E16 Bjørum-Skaret Norway Construction • Revenue SEK 40.6 bn (39.7) • Order bookings SEK 63.2 bn (37.3) – Book-to-build 115%, R-12 – Order backlog SEK 250.3 bn (215.5) • Operating income SEK 1,391 M (1,360) – Operating margin 3.4% (3.4) • Record strong order intake boosted by large civil contracts in
Slide 4: Residential Development
Urbani Gothenburg Sweden Residential Development • Revenue SEK 1.6 bn (2.9) – 343 (680) homes sold – 241 (957) homes started • Operating income SEK 49 M (332) – Operating margin 2.9% (11.3) • ROCE 0.2% (11.0), R-12 • Sales volumes slightly up, but remain low due to subdued market activity • Measures
Slide 5: Commercial Property Development
Centrum Poludnie Wrocław Polen Commercial Property Development • Operating income SEK -15 M (834) – Gain on sale SEK 171 M (1,084) • ROCE 3.1% (10.9), R-12 • 33 ongoing projects – SEK 32.7 bn total investment – 2 projects pre-sold and started in Q2 • Strong leasing activity during the quarter – 78,0
Slide 6: Investment Properties
Sthlm01 Stockholm Sweden Investment Properties • Targeting a high quality, sustainable office portfolio of SEK 12-18 bn, to generate stable cash flow • Stable operational performance • Good tenant interest for the few remaining vacant premises 7/21/2023 Skanska Q2 report 2023 6
Slide 7: Construction: Order bookings
E16 Bjørum-Skaret Norway 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Book-to-build %, R-12 2019 2020 2021 2022 2023 SEK
Slide 8: Construction: Order bookings by region
E16 Bjørum-Skaret Norway Construction Order bookings Apr-Jun Apr-Jun Book-to- Months of SEK bn 2023 2022 build, % production Nordics 31.7 16.5 124 17 of which Sweden 8.9 9.5 93 12 Europe 7.6 7.7 83 17 USA 23.9 13.0 119 19 Total 63.2 37.3 115 18 7/21/2023 Skanska Q2 report 2023 8
Slide 9: Construction: Income statement
E16 Bjørum-Skaret Norway Construction Income statement Operating margin, R-12, % Revenue, R-12, SEK bn 6 200 5 Revenue 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 2019 2020 2021 2022 2023 Apr-Jun Apr-Jun R12 Jan-Dec SEK bn 2023 2022 months 2022
Slide 10: Construction: Income statement by region
E16 Bjørum-Skaret Norway Construction Income statement Operating income, SEK M Operating margin, % Apr-Jun 2023 Apr-Jun 2022 Apr-Jun 2023 Apr-Jun 2022 Nordics 549 549 3.7 3.5 of which Sweden 251 310 3.0 3.3 Europe 189 256 2.6 3.7 USA 654 555 3.5 3.3 Total 1,391 1,360 3.4 3.4 7/21/2023 Skanska Q2 rep
Slide 11: Residential Development: Income statement, segment reporting
Urbani Gothenburg Sweden Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 Revenue 15 15 10 10 5 0 5 Operating margin -5 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Including residential rental
Slide 12: Residential Development: Income statement
Urbani Gothenburg Sweden Residential Development Income statement Operating income, SEK M Operating margin, % Apr-Jun 2023 Apr-Jun 2022 Apr-Jun 2023 Apr-Jun 2022 Nordics 4 258 0.3 10.7 of which Sweden -3 119 neg 9.6 Europe 45 74 9.4 14.6 Total 49 332 2.9 11.3 7/21/2023 Skanska Q2 report 2023 12
Slide 13: Residential Development: Homes started and sold
Urbani Gothenburg 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 1,000 500 Sold 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Including residential Rentals until Q4 2020 Homes started
Slide 14: Residential Development: Homes in production
Urbani Gothenburg 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Sold under construction Unsold under constructio
Slide 15: Commercial Property Development: Income statement
Centrum Poludnie Wrocław Polen Commercial Property Development Income statement, segment reporting Apr-Jun Apr-Jun R12 Jan-Dec SEK bn 2023 2022 months 2022 Revenue 857 5,666 4,894 14,276 Gross income 233 1,082 2,021 3,857 Selling and administrative expenses -247 -251 -1,001 -999 Income from JV's and
Slide 16: Unrealized and realized gains, segment reporting
Centrum Poludnie Wrocław Polen 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Unrealized gains in: Land Ongoing projects at com
Slide 17: Completion profile, unsold projects
Centrum Poludnie Wrocław Polen Commercial Property Development Completion profile, unsold projects (excl. residential rentals) SEK bn % 10 100 9 80 90 8 73 80 7 70 6 60 5 50 56 4 40 3 19 30 2 27 7 20 1 0 0 0 10 0 0 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2024 2025 2026 Total investments at complet
Slide 18: Commercial Property Development: Leasing
Centrum Poludnie Wrocław Polen Commercial Property Development Leasing 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 2019 2020 2021 2022 2023 Leasing, R-12 Economic occupancy rate, ongoing projects
Slide 19: Investment Properties: Income statement
Sthlm01 Stockholm Sweden Investment Properties Income statement Apr-Jun Apr-Jun R12 Jan-Dec SEK M 2023 2022 months 2022 Revenue 45 10 116 40 Operating net 32 8 86 30 Selling and administrative expenses -1 0 -4 -2 Change in property value -25 0 61 112 Income from joint ventures and associated compani
Slide 20: Group Income Statement
Nordøyvegen Møre and Romsdal county Norway Group Income Statement Apr-Jun Apr-Jun R12 Jan-Dec SEK m 2023 2022 months 2022 Operating income from business streams 1,431 2,534 7,244 9,824 Central -73 -155 -280 -339 Eliminations -27 18 -191 -187 Operating income 1,331 2,397 6,773 9,297 Net financial ite
Slide 21: Group Cash flow
Nordøyvegen Møre and Romsdal county Norway Group Cash flow SEK bn 20 15 10 Cash flow from business 5 operations, quarterly 0 Rolling 12 months -5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Apr-Jun Apr-Jun R12 Jan-Dec SEK bn 2023 2022 months 2022 Operating ca
Slide 22: Construction: Free working capital
E16 Bjørum-Skaret Norway 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 2019 2020 2021 2022 2023 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working cap
Slide 23: Group investments, divestments and capital employed
Nordøyvegen Møre and Romsdal county Norway Group investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly Divestments, 0 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 2019 2020 2021 2022 2023 Jun 30, Jun 30, 31 dec SE
Slide 24: Group available funds and maturity profile
Nordøyvegen Møre and Romsdal county Norway Group Available funds: SEK 16.0 bn, o/w unutilized credit facilities SEK 9.4 bn Central funding SEK bn Maturity profile 7.0 6.0 5.0 SEK4.2 bn 4.0 3.0 100% 2.0 1.0 Green bilaterial loan 0.0 Green bonds 2023 2024 2025 2026 2027 2028 2029 2030 Bilaterial loan
Slide 25: Group Financial position
Nordøyvegen Møre and Romsdal county Norway Group Financial position Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn 20 15 10 5 0 -5 -10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Jun 30, Jun 30, Dec 31, SEK bn 2023 2022 2022 Total assets 1
Slide 26: Market outlook
Nordøyvegen Møre and Romsdal county Norway Market outlook Construction • Mostly strong or stable for the USA and Nordics. Swedish building market expected to weaken • Active sectors: civil infrastructure and social infrastructure • Material availability improved and material prices have leveled out
Slide 27: Group Summary
Nordøyvegen Møre and Romsdal county Norway Group Summary • Group performance in Q2 benefited from strong performance in Construction – Construction – delivering strong results – Residential Development – low sales volumes – Commercial Property Development – solid leasing, low sales – Investment Prop
Slide 28: Skanska Q2 report 2023
7/21/2023 Skanska Q2 report 2023 28