Slide 1: Third quarter report 2023
H2Offices Budapest Hungary Third quarter report 2023 We build for a better society
Slide 2: Third quarter report 2023 highlights
H2Offices Budapest Hungary Third quarter report 2023 • Strong Construction performance and impact of weak property markets • Result impacted by asset and goodwill impairments of SEK 0.9 billion • Operating margin in Construction 3.3% (3.4) • ROCE in Project Development 0.7% (10.0), R-12 • Return on
Slide 3: Construction
LA Metro Los Angeles USA Construction • Revenue SEK 40.9 bn (40.2) • Order bookings SEK 32.7 bn (43.8) – Book-to-build 107%, R-12 – Order backlog SEK 239.7 bn (227.9) • Operating income SEK 1,365 M (1,348) – Operating margin 3.3% (3.4) • Robust order intake for several consecutive quarters and an or
Slide 4: Residential Development
Urbani Gothenburg Sweden Residential Development • Revenue SEK 0.9 bn (1.5) – 277 (339) homes sold – 0 (371) homes started • Operating income SEK -494 M (130) – Operating margin neg (8.8) • ROCE neg (9.5), R-12 • Lower-than-normal sales volumes in all markets except for Central Europe • Boklok turna
Slide 5: Commercial Property Development
Hyllie terrass Malmö. Sweden Commercial Property Development • Operating income SEK -277 M (-17) – Gain on sale SEK 199 M (166) • ROCE 2.3% (10.2), R-12 • 29 ongoing projects – SEK 31.0 bn total investment – 61% completion rate – 36% occupancy rate (44% excl. residential rental) – No projects starte
Slide 6: Investment Properties
Aqua Malmö Sweden Investment Properties • Targeting a high quality, sustainable office portfolio of SEK 12-18 bn, to generate stable cash flow • Stable operational performance • Economic occupancy rate at 91 percent 11/1/2023 Skanska Q3 report 2023 6
Slide 7: Construction: Order bookings
LA Metro Los Angeles USA 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Book-to-build %, R-12 2019 2020 2021 2022 2023 SEK
Slide 8: Construction: Order bookings by region
LA Metro Los Angeles USA Construction Order bookings Book-to- Jul-Sep Jul-Sep build, % Months of SEK bn 2023 2022 (R-12 months) production Nordics 9.5 11.2 120 16 of which Sweden 5.5 7.9 89 11 Europe 2.9 9.0 62 15 USA 20.3 23.7 114 20 Total 32.7 43.8 107 18 11/1/2023 Skanska Q3 report 2023 8
Slide 9: Construction: Income statement
LA Metro Los Angeles USA 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Jul-Sep Jul-Sep R12 Jan-Dec SEK bn 2023 2022 months 2022
Slide 10: Construction: Income statement by region
LA Metro Los Angeles USA Construction Income statement Operating income, SEK M Operating margin, % Jul-Sep Jul-Sep Jul-Sep Jul-Sep 2023 2022 2023 2022 Nordics 389 487 2.8 3.5 of which Sweden 250 288 3.5 3.5 Europe 200 239 2.9 3.2 USA 775 623 3.9 3.3 Total 1,365 1,348 3.3 3.4 11/1/2023 Skanska Q3 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 Operating margin 10 15 0 10 -10 -20 5 -30 Revenue 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Including residential re
Slide 12: Residential Development: Income statement by region
Urbani Gothenburg Sweden Residential Development Income statement Operating income, SEK M Operating margin, % Jul-Sep 2023 Jul-Sep 2022 Jul-Sep 2023 Jul-Sep 2022 Nordics -441 127 neg 10.8 of which Sweden -89 42 neg 19.0 Europe -54 3 neg 0.9 Total -494 130 neg 8.8 11/1/2023 Skanska Q3 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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 Homes % 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Sold under construction Unsold under construction
Slide 15: Commercial Property Development: Income statement
Hyllie terrass Malmö Sweden Commercial Property Development Income statement, segment reporting Jul-Sep Jul-Sep R12 Jan-Dec SEK M 2023 2022 months 2022 Revenue 1,375 327 5,942 14,276 Gross income -56 167 1,798 3,857 Selling and administrative expenses -220 -185 -1,037 -999 Income from JV's and assoc
Slide 16: Unrealized and realized gains, segment reporting
Hyllie terrass Malmö Sweden 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Unrealized gains in: Land Ongoing projects at comple
Slide 17: Completion profile, unsold projects
Hyllie terrass Malmö Sweden Commercial Property Development Completion profile, unsold projects SEK bn 100 % 10 100 86 9 80 90 76 8 80 7 70 6 60 45 5 50 4 40 3 20 30 2 26 7 20 1 0 0 0 10 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2024 2025 2026 Total investments at completion, unsold ongoing projects Comp
Slide 18: Commercial Property Development: Leasing
Hyllie terrass Malmö Sweden 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Leasing, R-12 Economic occupancy rate, ongoing projects (e
Slide 19: Investment Properties: Income statement
Aqua Malmö Sweden Investment Properties Income statement Jul-Sep Jul-Sep R12 Jan-Dec SEK M 2023 2022 months 2022 Revenue 44 10 151 40 Operating net 31 7 110 30 Selling and administrative expenses -1 0 -4 -2 Change in property value 0 0 61 112 Income from joint ventures and associated companies 0 0 0
Slide 20: Group Income Statement
H2Offices Budapest Hungary Group Income Statement Jul-Sep Jul-Sep R12 Jan-Dec SEK M 2023 2022 months 2022 Operating income from business streams 625 1,468 6,401 9,824 Central -85 112 -476 -339 Eliminations 9 -61 -121 -187 Operating income 549 1,518 5,804 9,297 Net financial items 150 69 631 289 Inco
Slide 21: Group Cash flow
H2Offices Budapest Hungary Group Cash flow SEK bn 20 15 10 Cash flow from 5 business operations, 0 quarterly -5 Rolling 12 months -10 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Jul-Sep Jul-Sep R12 Jan-Dec SEK bn 2023 2022 months 2022 Operating cash flow from
Slide 22: Construction: Free working capital
LA Metro 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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
H2Offices Budapest Hungary Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly 0 Divestments, quarterly -5 Net investments, R- -10 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 12 2019 2020 2021 2022 2023 Sep 30, Sep 30, 31 dec SEK bn 2023 2022
Slide 24: Available funds and central funding maturity profile
H2Offices Budapest Hungary Group Available funds: SEK 16.0 bn, o/w unutilized credit facilities SEK 8.8 bn Central funding SEK bn Maturity profile 7.0 6.0 5.0 4.0 SEK4.2 bn 3.0 2.0 100% 1.0 0.0 Bilateral loans 2024 2025 2026 2027 2028 2030 Bilateral loans Revolving Credit facility (unutilized) 11/1/
Slide 25: Financial position
H2Offices Budapest Hungary Group Financial position Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn 20 15 10 5 0 -5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Sep 30, Sep 30, Dec 31, SEK bn 2023 2022 2022 Total assets 157.7 152.3 151.6 Equ
Slide 26: Market outlook
H2Offices Budapest Hungary Market outlook Construction • Mostly in line with previous expectations. Finnish and Norwegian building market expected to weaken due to reduced public sector activity • USA remains the strongest market • Active sectors: civil infrastructure and social infrastructure Resid
Slide 27: Summary
H2Offices Budapest Hungary Group Summary • Performance in the third quarter – Construction – delivering strong results – Residential Development – low sales volumes – Commercial Property Development – divestment of H2Offices – Investment Properties – solid operational performance • Asset and goodwil
Slide 28: Skanska Q3 report 2023
11/1/2023 Skanska Q3 report 2023 28