Review of 2010 â USD version - Skanska
Review of 2010 â USD version - Skanska
Review of 2010 â USD version - Skanska
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Capital structure<br />
Capital requirements vary between business streams.<br />
<strong>Skanska</strong>’s construction projects are mainly funded<br />
by customers. This enables the Company to operate<br />
with negative working capital in its Construction<br />
business stream. However, the equity requirement for<br />
a construction company is substantial given <strong>Skanska</strong>’s<br />
large business volume and the risks inherent in the various<br />
types <strong>of</strong> assignments it carries out. <strong>Skanska</strong> must<br />
also take into account the financing <strong>of</strong> goodwill and the<br />
performance guarantees required by publicly procured<br />
projects in the U.S. market.<br />
The ambition is to invest net cash surplus in <strong>Skanska</strong>’s<br />
development business streams – Residential Development,<br />
Commercial Property Development and Infrastructure<br />
Development. Liquid assets not being utilized are invested<br />
in such cash equivalents as government bonds and bank or<br />
corporate bonds with no lower than a BBB rating.<br />
The energy-efficient, environmentally sound Gårda<br />
<strong>of</strong>fice building in Gothenburg is pre-certified as<br />
LEED Platinum, the highest level in the LEED<br />
international environmental certification system.<br />
It will also be the city’s first <strong>of</strong>fice building to meet<br />
EU GreenBuilding standards, meaning that its energy<br />
use is at least 25 percent lower than prescribed in the<br />
National Swedish Board <strong>of</strong> Housing, Building and<br />
Planning’s norms for newly built properties.<br />
New financial targets<br />
In keeping with <strong>Skanska</strong>’s new business plan, which is<br />
described on page 9 and aims at pr<strong>of</strong>itable growth in<br />
the four business streams, the Group has adopted the<br />
following new financial targets for the period 2011–2015.<br />
Financial targets 2011−2015<br />
Group<br />
Return on equity for the period shall<br />
amount to 18–20 percent annually<br />
Maintenance <strong>of</strong> a positive net cash<br />
position, excluding net pension<br />
liabilities and construction credit for<br />
cooperative housing associations and<br />
housing corporations.<br />
Construction<br />
An operating margin averaging<br />
3.5–4.0 percent over a business cycle.<br />
Project development streams<br />
Return on capital employed averaging<br />
10–15 percent annually during the<br />
period for the combined development<br />
streams.<br />
Qualitative targets<br />
Qualitative targets are also being<br />
added to the financial targets. These<br />
targets are connected both to supporting<br />
the long-term goals <strong>of</strong> the<br />
2011–2015 business plan and to<br />
supporting the five zeros vision.<br />
<strong>Skanska</strong> <strong>Review</strong> <strong>of</strong> <strong>2010</strong> – <strong>USD</strong> <strong>version</strong> Financial and qualitative targets 13
Change language