Skanska Ab Class B · OMXSTO:SKA_B
Skanska Ab Class B — Q3 2021 Earnings Presentation
26 slides from Skanska Ab Class B's earnings presentation, Oct 28, 2021
Slide 1: Nine month report 2021
Nine month report 2021 We build for a better society. Powerhouse Brattørkaia, Trondheim, Norway October 28, 2021 Skanska Nine month report 2021 1
Slide 2: Nine month report 2021
Nine month report 2021 − Solid performance – Construction - steadily improving – Residential Development – strong profitability – Commercial Property Development – sizeable starts and gains at attractive levels − Operating margin in Construction 3.6% (2.3) − ROCE in Project Development 12.1% (11.0),
Slide 3: Construction
Construction − Revenue SEK 95.0 bn (106.3) − Order bookings SEK 111.3 bn (110.0) – Book-to-build 117%, R-12 – Order backlog SEK 197.6 bn (182.9) − Operating income SEK 3,428 M (2,416) – Operating margin 3.6% (2.3) – Q2 divestment of infrastructure services operations in the UK impacting positively −
Slide 4: Residential Development
Residential Development − Revenue SEK 10.7 bn (9.6) – 3,054 (2,879) homes sold – 2,505 (2,495) homes started − Operating income SEK 1,561 M (1,068) – Operating margin 14.5% (11.2) − ROCE 14.9% (12.1), R-12 − High activity and strong profitability − Focus on zoning to bring projects to the market − L
Slide 5: Commercial Property Development
Commercial Property Development − Operating income SEK 1,541 M (2,204) – Gain on sale SEK 1,861 M (2,656) − ROCE 10.8% (10.6), R-12 − 32 ongoing projects – SEK 23.7 bn total investment – 23% occupancy rate / 33% completion rate – 16 projects started during first nine months, total investment SEK 14
Slide 6: Construction
Construction Order bookings SEK bn Book-to-build 117% 250 200 150 100 Order backlog Order bookings, R-12 50 Revenue, R-12 Order bookings per 0 quarter Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Revenue 95.0 106.3
Slide 7: Construction
Construction Order bookings Jan-Sep Jan-Sep Book-to- Months of SEK bn 2021 2020 build, % production Nordics 43.3 42.7 111 15 of which Sweden 22.6 24.0 90 13 Europe 23.7 34.0 138 23 USA 44.2 33.3 115 19 Total 111.3 110.0 117 18 Hisingsbron, Gothenburg, Sweden October 28, 2021 Skanska Nine month repor
Slide 8: Construction
Construction Income statement Operating margin, R-12, % Revenue, R-12, SEK bn 6 180 Revenue 5 150 4 120 3 90 2 60 Operating margin 1 30 0 0 -1 -30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Revenue 95.0 106.3 140
Slide 9: Construction
Construction Income statement Operating income, SEK M Operating margin, % Jan-Sep 2021 Jan-Sep 2020 Jan-Sep 2021 Jan-Sep 2020 Nordics 1,461 1,408 3.7 3.4 of which Sweden 794 778 3.4 3.1 Europe 837 165 5.3 0.9 USA 1,129 843 2.9 1.8 Total 3,428 2,416 3.6 2.3 Hisingsbron, Gothenburg, Sweden October 28,
Slide 10: Residential Development
Residential Development Income statement, segment reporting Operating margin, R-12, % Revenue, R-12, SEK bn 20 20 Revenue 15 15 10 10 Operating margin 5 5 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Revenue 10
Slide 11: Residential Development
Residential Development Income statement Operating income, SEK M Operating margin, % Jan-Sep 2021 Jan-Sep 2020 Jan-Sep 2021 Jan-Sep 2020 Nordics 1,323 931 13.9 10.7 of which Sweden 820 562 14.2 10.6 Europe 238 138 19.7 15.7 Total 1,561 1,068 14.5 11.2 Gottorps Hage, Malmö, Sweden October 28, 2021 Sk
Slide 12: Residential Development
Residential Development Homes started and sold Homes, R-12 6,000 Sold 5,000 4,000 3,000 Started 2,000 1,000 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Homes started Homes sold Jan-Sep Jan-Sep Jan-Dec Jan-Sep Jan-Sep Jan-Dec 2021 2020 2020 2021 2020 2020 2,
Slide 13: Residential Development
Residential Development Homes in production SEK bn % 9,000 90 8,000 80 7,000 70 6,000 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 2017 2018 2019 2020 2021 Sold under construction Unsold under construction Unsold completed Sales rate
Slide 14: Commercial Property Development
Commercial Property Development Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Revenue 4,404 6,237 14,983 Gross income 1,981 2,811 4,701 Selling and administrative expenses -529 -597 -797 Income from joint ventures and associated companies 89 -9 -8 Operating income 1,541 2,204 3,897 of which gains fr
Slide 15: Commercial Property Development
Commercial Property Development Unrealized and realized gains, segment reporting SEK bn 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 2017 2018 2019 2020 2021 Unrealized gains in: Land Ongoing projects at completion Completed projects Realized gains, R-12 Parkview, Prag
Slide 16: Commercial Property Development
Commercial Property Development Completion profile, unsold projects SEK bn % 12 100 84 90 10 80 67 70 8 51 60 6 50 40 40 31 4 30 16 5 20 2 2 10 10 0 0 0 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Total investment at completion, unsold ongoing projects Completed unsold projects Weighted occupanc
Slide 17: Commercial Property Development
Commercial Property Development Leasing 000 sq m % 600 100 90 500 80 400 70 60 300 50 40 200 30 100 20 10 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Leasing, R-12 Occupancy rate, ongoing projects Degree of completion, ongoing projects Parkview, Prague, C
Slide 18: Group Income Statement
Group Income Statement Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Operating income from business 6,529 5,688 8,968 Central -226 -340 2,830 Eliminations -98 -76 62 Operating income 6,206 5,272 11,860 Net financial items -108 -177 -236 Income after financial items 6,098 5,095 11,624 Taxes -988 -921
Slide 19: Group Cash flow
Group Cash flow SEK bn 18 16 14 12 10 Cash flow from 8 business 6 operations, 4 quarterly 2 Rolling 12 0 months -2 -4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Operating cash flow from operations 1.7 4.9 14.4 Di
Slide 20: Construction Free working capital
Construction Free working capital SEK bn % 30 21 25 18 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 2017 2018 2019 2020 2021 Free working capital, SEK bn Average free working capital/ Construction revenue, R-12, % Free working capital, end of Q3, SEK bn Powe
Slide 21: Investments, divestments and capital employed
Group Investments, divestments and capital employed SEK bn 20 15 Divestments, 10 quarterly 5 Investments, quarterly 0 Net investments, R-12 -5 -10 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Capital employed in: Resi
Slide 22: Available funds and maturity profile
Group Available funds: SEK 17.5 bn, o/w unutilized credit facilities SEK 6.6 bn SEK bn Maturity profile Central funding 1.6 15% 1.2 SEK 3.3 bn 0.8 0.4 85% 0.0 Bilaterial loan 2021 2022 2023 2024 2025 2026 2027 Green bonds Powerhouse Brattørkaia, Trondheim, Norway October 28, 2021 Skanska Nine month
Slide 23: Group Financial position
Group Financial position Adjusted interest-bearing net receivables (+)/net debt (-), SEK bn 20 15 10 5 0 -5 -10 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Jan-Sep Jan-Sep Jan-Dec SEK bn 2021 2020 2020 Total assets 132.5 128.2 125.6 Equity attributable to equ
Slide 24: Market outlook
Market outlook Construction − Pandemic impact still present, but activity is increasing in our markets − Price increases on certain materials and bottlenecks in the supply chain − Public infrastructure investments to stimulate economies, but funding uncertain − Ambitious investment plans under devel
Slide 25: Group summary
Group summary − Solid quarter and strong first nine months − Construction – profitability continues to improve − Residential Development – strong profitability − Commercial Property Development – sizeable project starts − Well-positioned – Strong financial position and organization – Our strengths i
Slide 26: July 23, 2021 Skanska Six-month report 2021
July 23, 2021 Skanska Six-month report 2021 26