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Business Plan 2011–2015Johan Karlström, President and CEO1December 9, 2010 Capital Market Day
Skanska in short Founded 1887 in SwedenInternational business since 1897Listed on the Stockholm Stock Exchange2009 revenues: SEK 137 billion51,000 employeesA Fortune 500 companyMember of UN Global CompactÄlvsborgsbron, Gothenburg, Sweden2December 9, 2010 Capital Market Day
Local presence – global LatinAmericaRevenue 2009 by geographic areasSweden, 19%Other Nordic countries, 14%Other European countries, 29%United States, 33%Latin America, 5%3December 9, 2010 Capital Market Day
Our four Business Streams4December 9, 2010 Capital Market Day
Our journeyProfitable growth2011 2015Consolidation2004 2010Rapid expansion1997 20035December 9, 2010 Capital Market Day
Construction margin progress%4.03.73.82009R12 0056December 9, 2010 Capital Market Day200620072008
9Consolidation phase successfullycompleted9Strong financial and operationalplatform9Common value base andcollaborative culture7December 9, 2010 Capital Market Day
Our journeyTodayProfitable growth2011 2015Consolidation2004 2010Rapid expansion1997 20038December 9, 2010 Capital Market Day
Build on global trendsand existing strengths9December 9, 2010 Capital Market Day
Strengths and valuesHome markets/local presenceDecentralized/integratedFinancial strengthand synergiesCivil and buildingconstructionProjectDevelopmentProject executionRisk managementPeopleKnowledgeBrandCode of Conduct and 5 Zeros10December 9, 2010 Capital Market Day
One SkanskaHome markets/local presenceDecentralized/integratedFinancial strengthand synergiesCivil and buildingconstructionProjectDevelopmentProject executionRisk managementPeopleKnowledgeBrandCode of Conduct and 5 Zeros11December 9, 2010 Capital Market Day
Increasing urbanizationSince 2007, 50% of the world’s population lives in citiesRequires huge investments inmasstransitschoolshealth12December 9, 2010 Capital Market Dayhousingwaterwastesportsculture
Increasing urbanizationMajority of growth and consumption in cities90%75%60%of populationgrowthof all energyconsumptionof wasteconsumption13December 9, 2010 Capital Market Day
Demographicchanges Ageing and growingpopulation Need for healthcareUniversity Hospital in Coventry, UK14December 9, 2010 Capital Market Day
Global demand for energy andenergy efficiency will increase dramaticallyTotoral Wind Farm, Chile15December 9, 2010 Capital Market Day
Evaluation criteria for new opportunitiesMarketattractiveness Significant market size Market growth GDP growth with long-term stablegrowth outlook Industry profitability above Skanska targets Low number of existing players, right type of entrybarriers, economies of scale to exploit Acceptable complexityFeasibility forSkanska Skanska has experience and distinct capabilities tobe leading Multiple available acquisition candidates An attractive growth roadmap possible, with severalstrategies and actions Remain true to Skanska’s commitment to its FiveZeros, Code of Conduct and to Green16December 9, 2010 Capital Market Day
Profitable growthWhatto do andour targets?17December 9, 2010 Capital Market DayHowto do it?
Financial targets and dividend policy Group ROE 18–20% per annum Dividend pay out 40–70% of Earnings Per Share Net cash position (pension liabilities and constructioncredits in residential development co-ops excluded) Construction EBIT margin 3.5–4.0% over a business cycle Grow faster than the market RD, CD and ID ROCE 10–15% per annum Significantly grow investments18December 9, 2010 Capital Market Day
Increase pace of financial ontracts19December 9, 2010 Capital Market DayCDID
Leadingposition inConstruction20December 9, 2010 Capital Market Day
Significantlylarger inProjectDevelopment21December 9, 2010 Capital Market Day
Skanska in 2015Better balancebetween ConstructionandProject Development22December 9, 2010 Capital Market Day
Skanska in 2015Leader inRiskmanagement23December 9, 2010 Capital Market Day
Skanska in 2015Leader inPeopledevelopment24December 9, 2010 Capital Market Day
Skanska in 2015Leader inSafety25December 9, 2010 Capital Market Day
Skanska in 2015Leader inEthics26December 9, 2010 Capital Market Day
Skanska in 2015Leader inGreen27December 9, 2010 Capital Market Day
How we will reachour targetsConstructionManhattan Bridge, New York, USA28December 9, 2010 Capital Market Day
Profitable growth in ConstructionExpand rangeof serviceswithin homemarkets29December 9, 2010 Capital Market Day
Profitable growth in ConstructionGeographic expansionwithin home markets30December 9, 2010 Capital Market Day
Profitable growth in ConstructionCollaboration inClusters of Business UnitsOperational synergies31December 9, 2010 Capital Market Day
Use our knowledgeWorld Trade CenterUSA Building and USA Civil32December 9, 2010 Capital Market Day
Use our knowledgeNorra LänkenSkanska Sweden,Skanska Czech Republic andSlovakia33December 9, 2010 Capital Market Day
Use our knowledgeAlaskan Highway, SeattleUSA Building and USA Civil34December 9, 2010 Capital Market Day
Profitable growth in ConstructionMore Bundled ConstructionConcert, Congress and Hotel, Malmö, Sweden35December 9, 2010 Capital Market Day
Profitable growthin ConstructionExpandHealthcarebusiness36December 9, 2010 Capital Market Day
Use our knowledgeNya Karolinska Solna HospitalSkanska Sweden, Skanska UK, Skanska USABuilding and Skanska ID37December 9, 2010 Capital Market Day
Profitable growthin ConstructionImproveoperationalefficiencyNew Meadowland Stadium, New Jersey, USA38December 9, 2010 Capital Market Day
Opportunities in ConstructionGreen businessSolar panels at Skanska’s Cortez office, Colorado, USA39December 9, 2010 Capital Market Day
Commercial market adaption is moving fast40December 9, 2010 Capital Market Day
Green refurbishment Large commercial property owners USA, UK, Norway, Sweden and Finland Fixed price Design Build construction agreement Time limited Energy Performance Guarantee LEED or BREEAM Guarantee41December 9, 2010 Capital Market Day
Residential Development42December 9, 2010 Capital Market Day
Expand Residential Development Grow Nordics Regain volumes inCzech Republic andSlovakia Enter UK and Poland Grow BoKlokSkanska presenceNew markets43December 9, 2010 Capital Market Day
Commercial Property DevelopmentSkandia HQ, Stockholm, Sweden44December 9, 2010 Capital Market Day
Growth in Commercial PropertyDevelopment in Europe Grow strong business in Sweden Grow Finland and Denmark Ramp up Norway More cities in Poland andCzech Republic Evaluate Slovakia andRomania45December 9, 2010 Capital Market DaySkanska presenceNew marketUnder evaluation
Ramp-up Commercial PropertyDevelopment U.S. Existing marketsSeattle, WABoston, MA Enter Seattle Potential entry in thegovernmental sector First lease agreementsigned in Washington D.C.Washington D.C.Houston, TxSkanska presenceNew market46December 9, 2010 Capital Market Day
Infrastructure DevelopmentAntofagasta highway, Chile47December 9, 2010 Capital Market Day
Infrastructure Development strategy Growing existing segments New segments Waste to energyWind powerHigh speed railHospitals in Americas48December 9, 2010 Capital Market Day
Business Plan 2011–2015. Johan Karlström, President and CEO. December 9, 2010. Capital Market Day. 2. Skanska in short Founded 1887 in Sweden International business since 1897 Listed on the Stockholm Stock Exchange 2009 revenues: SEK 137 billion A Fortune 500 company Member of UN Global Compact Älvsborgsbron, Gothenburg, Sweden. December 9, 2010. Capital Market Day .
