Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q3 2024 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, Nov 6, 2024
Slide 1: Third quarter report 2024
Studio B Warsaw Poland Third quarter report 2024 We build for a better society
Slide 2: Third quarter report 2024
Third quarter report 2024 • Group performance • Construction – Strong order intake and solid margin delivery • Residential Development –Sales improving, restructuring BoKlok • Commercial Property Development – Leasing the US portfolio • Investment Properties – Solid operational and financial perform
Slide 3: Construction
Slussen Stockholm Sweden Construction • Revenue SEK 41.8 bn (40.9) • Order bookings SEK 50.8 bn (32.7) – Book-to-build 124%, R-12 – Order backlog SEK 267.0 bn (239.7) • Operating income SEK 1,517 M (1,365) – Operating margin 3.6% (3.3) • Solid margin delivery. Rolling 12-month operating margin was 3
Slide 4: Residential Development
Powerhouse Lade Trondheim Norway Residential Development • Revenue SEK 1.7 bn (0.9) – 458 (277) homes sold – 186 (0) homes started • Operating income SEK -154 M (-494) • ROCE -3.1 (-3.5), R-12 • Increased sales volumes in the Nordics, good level of activity in Central Europe • BoKlok losses of SEK -
Slide 5: Commercial Property Development
Commercial Property Development • Operating income SEK -113 M (-277) – Gain on sale SEK 185 M (199) – ROCE 0.5% (2.3), R-12 • 17 ongoing projects – SEK 22.5 bn total investment • 23 completed projects – SEK 12.1 bn total investment – 75% leased • One project divested • Property asset impairment char
Slide 6: Investment Properties
Studio phase 2 Warsaw Poland Investment Properties • Operating income of SEK 79 M • Economic occupancy rate at 89 percent • Total portfolio property value SEK 7.8 bn • Targeting a high quality, sustainable, office portfolio of SEK 12-18 bn, to generate stable cash flow 11/6/2024 Skanska Q3 report 20
Slide 7: Construction: Order bookings
Construction Order bookings SEK bn % 300 140 250 120 Order backlog 100 200 80 Order bookings, R-12 150 60 Order bookings per 100 40 quarter 50 20 Revenue, R-12 0 0 Book-to-build %, R-12 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Jul-Sep Jul-Sep Rolling 12 Ja
Slide 8: Construction: Order bookings by region
Construction Order bookings Book-to- Months of SEK bn Jul-Sep 2024 Jul-Sep 2023 build, % production Nordics 10.1 9.5 84 15 of which Sweden 7.5 5.5 97 12 Europe 8.7 2.9 93 17 USA 32.0 20.3 160 25 Total 50.8 32.7 124 20 11/6/2024 Skanska Q3 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Jul-Sep Jul-Sep Rolling 12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 41.8 40.9
Slide 10: Construction: Income statement by region
Construction Income statement Operating income, SEK M Operating margin, % Jul-Sep 2024 Jul-Sep 2023 Jul-Sep 2024 Jul-Sep 2023 Nordics 420 389 3.2 2.8 of which Sweden 237 250 3.5 3.5 Europe 253 200 3.9 2.9 USA 844 775 3.8 3.9 Total 1,517 1,365 3.6 3.3 11/6/2024 Skanska Q3 report 2024 10
Slide 11: Residential Development: Income statement, segment reporting
Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 10 15 0 Operating margin 10 -10 -20 Revenue 5 -30 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Including residential rentals until Q4 2020 Jul-S
Slide 12: Residential Development: Income statement
Residential Development Income statement Operating income, SEK M Operating margin, % Jul-Sep 2024 Jul-Sep 2023 Jul-Sep 2024 Jul-Sep 2023 Nordics -118 -441 -8.9 -88.9 of which Sweden -115 -89 -13.2 -20.3 Europe -36 -54 -10.2 -12.9 Total -154 -494 -9.2 -54.3 11/6/2024 Skanska Q3 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Including residential rentals until Q4 2020 Homes started Homes sold Jul-Sep Jul-Se
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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Sold under construction Unsold under construction Unsold completed Sales rate (i
Slide 15: Commercial Property Development: Income statement, segment reporting
Commercial Property Development Income statement, segment reporting Jul-Sep Jul-Sep R12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 994 1,375 10,481 5,331 Gross income 110 -56 748 -416 Selling and administrative expenses -222 -220 -837 -895 Income from JV's and associated companie -1 -0 -54 -54 Ope
Slide 16: Commercial Property Development: Unrealized and realized gains
Commercial Property Development Unrealized and realized gains, segment reporting SEK bn 14 12 10 8 6 4 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Unrealized gains in: Land Ongoing projects at completion Completed projects Realized gains, R-12 Including r
Slide 17: Commercial Property Development: Completion profile and unsold projects
Commercial Property Development Completion profile and unsold projects SEK bn % 14 100 75 90 12 77 80 10 70 55 8 60 41 40 50 6 40 4 30 20 2 10 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2025 2026 2027 Completed projects Ongoing offices Ongoing residential rentals Economic occupancy rate, % Total inv
Slide 18: Commercial Property Development: Leasing
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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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 Jul-Sep Jul-Sep R12 Jan-Dec SEK M 2024 2023 months 2023 Revenue 108 44 305 186 Operating net 81 31 228 137 Selling and administrative expenses -2 -1 -13 -9 Change in property value - - -107 -190 Operating income 79 31 108 -62 Eonomic Leasable Rental value, occu
Slide 20: Group: Income Statement
Group Income Statement Jul-Sep Jul-Sep R12 Jan-Dec SEK m 2024 2023 months 2023 Operating income from business streams 1,328 625 4,891 2,943 Central -94 -85 294 290 Eliminations 26 9 108 -3 Operating income 1,261 549 5,294 3,231 Net financial items 114 150 656 601 Income after financial items 1,375 7
Slide 21: Group: Cash flow
Group Cash flow SEK bn 20 15 10 Cash flow from 5 business 0 operations, quarterly -5 Rolling 12 -10 months Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Jul-Sep Jul-Sep R12 Jan-Dec SEK bn 2024 2023 months 2023 Operating cash flow from operations 6.2 0.3 6.6 1.1
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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working capital, end of Q3, SEK bn 1
Slide 23: Group: Investments, divestments and capital employed
Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly 0 Divestments, quarterly -5 Net divestments, -10 R-12 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 SEK bn Sep 30, 2024 Sep 30, 2023 Dec 31, 2023 Capital employed in: R
Slide 24: Group: Available funds and maturity profile
Group Available funds: SEK 24.9 bn, o/w unutilized credit facilities SEK 10 bn Maturity profile Central funding 3.5 3.0 2.5 42% SEK 9.8 bn 2.0 58% 1.5 1.0 0.5 Bilateral loans Bonds 0.0 2025 2026 2027 2028 2029 2030 Bilateral loans Bonds (MTN) 11/6/2024 Skanska Q3 report 2024 24
Slide 25: Group: Financial position
Group Financial position Adjusted interest-bearing net receivables(+)/net debt(-), SEK bn 20 15 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Sep 30, Sep 30, Dec 31, SEK bn 2024 2023 2023 Total assets 162.0 157.7 155.2 Equity attributable to equity holde
Slide 26: Market outlook
Market outlook Construction • USA remains the strongest market, both for building and civil infrastructure • Well positioned in growing geographies, segments and sectors in the US • Civil markets mostly stable but more cautious on building markets in the Nordics and Europe Residential Development •
Slide 27: Group: Summary
Group Summary • Group performance in the third quarter • Construction – Strong order intake and solid margin delivery • Residential Development –Sales improving, restructuring BoKlok • Commercial Property Development – Leasing the US portfolio • Investment Properties – Solid operational and financia
Slide 28: Skanska Q3 report 2024
11/6/2024 Skanska Q3 report 2024 28