Project+Management+UG

Managing risk must be a key discipline in skanska 30

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Unformatted text preview: ip − Planning − Safety tours That makes a difference! 37 March 2009 Skanska Corporate Presentation Green Vision Goal We are determined to become To develop economically the leading green project attractive green solutions for development and construction our customers company 38 March 2009 Skanska Corporate Presentation Customer orientation 39 March 2009 Skanska Corporate Presentation Branding 40 March 2009 Skanska Corporate Presentation People 41 March 2009 Skanska Corporate Presentation Skanska’s HR focus − Improve managers’ effectiveness at people management − Ensure Employee Satisfaction − Succession planning 42 March 2009 Skanska Corporate Presentation Tougher times = implications for Skanska Threats/challenges Tougher market Opportunities Prepare and act Come out stronger 43 March 2009 Skanska Corporate Presentation Skanska 2008 Key ratios SEK M EUR M USD M 143,674 14,923 21,802 Operating income 4,086 424 620 Income after financial items 4,410 458 669 Earnings per share after repurchases, SEK/EUR/USD 7.44 0.77 1.1 Return on equity, % 15.9 15.9 15.9 Return on capital employed, % 18.3 18.3 18.3 Order bookings1 126,524 13,142 19,199 Order backlog1 142,402 13,012 18,440 Revenue 1 Refers to Construction operations 45 March 2009 Skanska Corporate Presentation Earnings and dividend per share SEK 10 8 6 4 2 0 2004 2005 2006 Earnings per share Dividend per share Extra dividend per share 46 March 2009 Skanska Corporate Presentation 2007 2008 Key facts 2008 by business stream Revenue SEK 144 bn Revenue by geographic area SEK 144 bn Operating income SEK 4.1 bn SEK bn 150 SEK bn 150 SEK bn 6 120 120 90 90 60 60 2 30 0 30 0 1 5 4 3 0 -1 -2 Construction, 93% Residentail Development, 4% Commercial Development, 3% Infrastructure Development, 0% 0 47 March 2009 Sweden, 22% Other Nordic countries, 17% Other European countries, 28% United States, 29% Other markets, 4% Skanska Corporate Presentation Construction, 73% Residentail Development, neg Commercial Development, 19% Infrastructure Development, 8% Central & eliminations, neg Construction Meadowlands, New Jersey SEK M Revenue Operating income Operating margin, % Capital employed, SEK bn Number of employees 48 March 2009 Skanska Corporate Presentation 2008 139,498 3,761 2.7 0 56,482 2007 129,258 4,443 3.4 0.3 57,857 Residential Development Silverdal, Stockholm SEK M Revenue Operating income Capital employed, SEK bn Return on capital employed, % Number of employees 49 March 2009 Skanska Corporate Presentation 2008 6,450 -177 6.3 -3.1 676 2007 7,679 724 4.4 14.9 565 Commercial Development ÅF office, Stockholm SEK M Revenue Operating income o/w gain from divestment of properties Capital employed, SEK bn Return on capital employed, % Number of employees 50 March 2009 Skanska Corporate Presentation 2008 3,961 953 1,183 11.5 10.4 176 2007 3,130 910 1,051 7.3 14.2 141 Infrastructure Development Highway A1, Poland SEK M Revenue Operating income Capital employed, SEK bn Return on capital employed, % Number of employees 51 March 2009 Skanska Corporate Presentation 2008 55 396 1.8 17 133 2007 116 -107 2.5 58 121 Infrastructure Development Estimated gross present value by: Geografic Location Category Nordics, 5% United Kingdom, 15% Other European countries 3% Brazil 2% Chile 75% 52 March 2009 Skanska Corporate Presentation Payment type Facility, 2% Availability, 25% Market risk, 75% Highway, 8% Social infrastructure, 15% Highway Autopista Central, Chile, 75% Two compensation models Availability model Market risk model Compensation Predetermined End-user fees Project company’s responsibility/rights Responsible for Right to collect providing availability and end-user fees service to an agreed e.g. toll-road usage standard Credit and payment risk Low High Normal capital structure 5-10% equity 20-25% equity Value creation in Skanska Mainly in construction Mainly through return on equity investment Location Europe U.S., Latin America 53 March 2009 Skanska Corporate Presentation ID project portfolio Type of project Project Country Highway Highway Highway Hospitals Schools Power plant Hospital Highway Hospital Hospital Highway Schools Finland Norway Chile U.K. U.K. Brazil U.K. Poland U.K. U.K. Finland U.K. Hospital Hospital U.K. U.K. In operation, fully or partially, Dec. 2008 Nelostie E39 Autopista Central Coventry Bexely schools (Manaus) Breitener Midlothian A1 Mansfield Derby E18 Bristol Under investment Barts and London Walsall 54 March 2009 Skanska Corporate Presentation Longterm financial “Outperform” targets Group Return on equity, target % 20.0 Residential Commercial Infrastructure Construction Development Development Development Operating margin, target % Return on capital employed, target % Value creation, SEK M per annum 4.0 12.0 18.0 16.01 500/7002 1 Incl. unrealized investment gains and changes in market value, excluding currency rate effetcs 2 Accrued development gain minus expenses in the development organization, based on annual gross investments of SEK 4-5 billion. 55 March 2009 Skanska Corporate Presentation Operating margin in Construction Rolling 12 months 4.0 3.5 Outperform target 2008: 3.5% 3.0 2.5 Outcome: 2.7% (...
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