Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q1 2024 Earnings Presentation
28 slides from Skanska Ab Class B's earnings presentation, May 8, 2024
Slide 1: First quarter report 2024
The Eight Bellevue Washington state USA First quarter report 2024 We build for a better society
Slide 2: First quarter report 2024 highlights
The Eight Bellevue Washington state USA First quarter report 2024 • Mixed performance • Construction – Lower result. Strong order intake. • Residential Development – Increasing sales volume from low level. • Commercial Property Development – No divestment recorded. Improved leasing. • Investment Pro
Slide 3: Construction
Slussen Stockholm Sweden Construction • Revenue SEK 36.2 bn (37.5) • Order bookings SEK 46.9 bn (25.8) – Book-to-build 117% – Order backlog SEK 251.4 bn (217.9) • Operating income SEK 669 M (1,033) – Operating margin 1.8% (2.8) • Strong order intake in the USA and Norway • Order backlog reached a hi
Slide 4: Residential Development
Powerhouse Lade Trondheim Norway Residential Development • Revenue SEK 2.0 bn (0.6) – 511 (132) homes sold – 459 (288) homes started • Operating income SEK 23 M (-314) • ROCE -4.8 (2.0) • Increased sales volumes, but still lower than normal in all markets except for Central Europe • BoKlok losses of
Slide 5: Commercial Property Development
Commercial Property Development • Operating income SEK -166 M (-142) – Impairment charges SEK 0.2 bn related to a US project – ROCE -2.6% (5.6) • 21 ongoing projects – SEK 27.2 bn total investment • 22 completed projects – SEK 12.1 bn total investment – 73% leased • No divestments or project starts
Slide 6: Investment Properties
Studio phase 2 Warsaw Poland Investment Properties • No new investments during the first quarter • Stable performance with solid operating income of SEK 50 M • Economic occupancy rate at 91 percent • Targeting a high quality, sustainable, office portfolio of SEK 12-18 bn, to generate stable cash flo
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 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 2020 2021 2022 2023 2024 SEK bn Jan-Mar 2024 Jan-Mar 2
Slide 8: Construction: Order bookings by region
Construction Order bookings Book-to- Months of SEK bn Jan-Mar 2024 Jan-Mar 2023 build, % production Nordics 12.9 11.8 113 15 of which Sweden 6.6 7.0 89 11 Europe 3.0 2.6 76 15 USA 31.0 11.4 135 22 Total 46.9 25.8 117 19 5/8/2024 Skanska Q1 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Jan-Mar Jan-Mar Rolling 12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 36.2 37.5
Slide 10: Construction: Income statement by region
Construction Income statement Operating income, SEK M Operating margin, % Jan-Mar Jan-Mar Jan-Mar Jan-Mar 2024 2023 2024 2023 Nordics 415 399 3.2 2.8 of which Sweden 147 181 2.3 2.3 Europe -334 -5 -6.6 -0.1 USA 588 638 3.3 3.7 Total 669 1,033 1.8 2.8 5/8/2024 Skanska Q1 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 Operating margin 10 15 0 10 -10 -20 5 -30 Revenue 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Including residential rentals until Q4 2020 Jan-M
Slide 12: Residential Development: Income statement
Residential Development Income statement Operating income, SEK M Operating margin, % Jan-Mar Jan-Mar Jan-Mar Jan-Mar 2024 2023 2024 2023 Nordics 13 -268 0.9 neg of which Sweden -30 -281 neg neg Europe 9 -46 1.6 neg Total 23 -314 1.1 neg 5/8/2024 Skanska Q1 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Including residential Rentals until Q4 2020 Homes started Homes sold Jan-Mar Jan-Ma
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 Jan-Mar Jan-Mar R12 Jan-Dec SEK bn 2024 2023 months 2023 Revenue 363 267 5,427 5,331 Gross income 31 59 -444 -416 Selling and administrative expenses -195 -198 -893 -895 Income from JV's and associated companies -1 -3 -53 -54 Operat
Slide 16: Commercial Property Development: Unrealized and realized gains
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 2020 2021 2022 2023 2024 Unrealized gains in: Land Ongoing projects at completion Completed projects Real
Slide 17: Commercial Property Development: Completion profile and unsold projects
Commercial Property Development Completion profile and unsold projects SEK bn % 14 100 73 90 12 79 80 10 70 51 55 60 8 50 6 40 4 39 30 20 2 0 0 0 0 0 0 10 0 0 0 0 0 Q1 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 Eco
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 Jan-Mar Jan-Mar R12 Jan-Dec SEK M 2024 2023 months 2023 Revenue 70 41 214 186 Operating net 52 31 157 137 Selling and administrative expenses -2 -1 -9 -9 Change in property value 0 0 -190 -190 Operating income 50 30 -42 -62 Leasable Rental value, occupancy Prop
Slide 20: Group Income Statement
The Eight Bellevue Washington state USA Group Income Statement Jan-Mar Jan-Mar R12 Jan-Dec SEK m 2024 2023 months 2023 Operating income from business streams 576 607 2,912 2,943 Central -60 -159 390 290 Eliminations -20 -54 32 -3 Operating income 497 394 3,334 3,231 Net financial items 225 146 680 6
Slide 21: Group Cash flow
The Eight Bellevue Washington state USA Group Cash flow SEK bn 20 15 10 Cash flow from 5 business operations, 0 quarterly -5 Rolling 12 months -10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Jan-Mar Jan-Mar R12 Jan-Dec SEK bn 2024 2023 months 2023 Operating c
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working capital, end of Q1, SEK bn 5
Slide 23: Investments, divestments and capital employed
The Eight Belle<<<<vue Washington USA Group Investments, divestments and capital employed SEK bn 20 15 10 Investments, 5 quarterly 0 Divestments, quarterly -5 Net investments, R-12 -10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Mar 31, Mar 31, Dec 31, SEK bn
Slide 24: Available funds and maturity profile
The Eight Belle<<<<vue Washington state USA Group Available funds: SEK 21.5 bn, o/w unutilized credit facilities SEK 9.4 bn Maturity profile Central funding 3.0 2.5 2.0 47% SEK9.8 bn 53% 1.5 1.0 0.5 Bilateral loans 0.0 Bonds 2024 2025 2026 2027 2028 2029 2030 Bilateral loans Bonds (MTN) 5/8/2024 Ska
Slide 25: Financial position
The Eight Belle<<<<vue Washington state USA Group Financial position Adjusted interest-bearing net receivables(+)/net debt(-), SEK bn 20 15 10 5 0 -5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 Mar 31, Mar 31, Dec 31, SEK bn 2024 2023 2023 Total assets 160.3
Slide 26: Market outlook
The Eight Belle<<<<vue Washington state USA Market outlook Construction • Mostly in line with previous outlook. • Improved outlook for the building market in Central Europe, increased activity in the residential segment and encouraging signals from the industry • USA remains the strongest market Res
Slide 27: Summary
The Eight Belle<<<<vue Washington state USA Group Summary • Performance in the first quarter • Construction – Lower result. Strong order intake. • Residential Development – Increasing sales volume from low level. • Commercial Property Development – No divestment recorded. Improved leasing. • Investm
Slide 28: Skanska Q1 report 2024
5/8/2024 Skanska Q1 report 2024 28