Review of 2010 – USD version - Skanska

Business streams
willingness of customers to buy homes. The number of
project start-ups in the Swedish and Norwegian housing
markets is expected to increase during 2011.
Finland and Estonia
In Finland, demand and sales were good during 2011
both in the Helsinki area and in a number of regional
centers. The number of unsold homes is low, and the few
that remain are mainly in Estonia, where the market is
still weak. In Finland, the focus during the year has thus
primarily been on starting up new projects and acquiring
land for development of future residential areas. More
than 1,000 homes were started in Finland, and of these
more than 900 were pre-sold. The demand for new
homes is expected to remain at a good level in 2011.
Skanska’s Botanica residential
area in the Czech capital of Prague
is continuing to grow. Botanica is
now seeing construction of its fifth
phase, which will be energy-efficient
and include solar roof panels.
Czech Republic and Slovakia
In the Czech Republic and Slovakia, Skanska is developing
homes in Prague and Bratislava, with the potential to
start projects in regional growth centers during 2011.
Interest among buyers began to recover after a sharp
downturn in 2009. During 2010, sales of both previously
completed homes and new projects improved.
The number of unsold homes fell in the Czech Republic,
but in Slovakia the recovery was slower. Sales during
the year totaled 415 homes, and 415 homes were started,
mainly in Prague. This makes Skanska one of the biggest
market players.
Demand is expected to increase somewhat in 2011,
stimulated by the greater willingness of banks to provide
loans and allow higher loan-to-value ratios.
Residential Development
Revenue Operating income Operating margin, % Capital employed 1 capital employed 2 ,%
Return on
USD M 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Sweden 457 411 40.6 7.6 8.9 1.8 756 481 6.6 2.1
Norway 194 103 7.1 –1.7 3.6 neg 328 251 2.4 neg
Denmark – 17 – –5.0 – neg – 75 – neg
Finland 329 277 23.4 –2.4 7.1 neg 332 303 7.9 neg
Nordic countries 981 807 71.1 –1.4 7.2 neg 1,416 1,109 5.8 neg
Czech Republic 71 48 6.4 –0.7 9.0 neg 82 98 6.7 neg
Total 1,052 855 77.5 –2.1 7.4 neg 1,498 1,207 5.9 neg
1 Capital employed according to IFRSs.
2 Return on capital employed based on operating income according to segment reporting.
Number of unutilized building rights in Skanska
Market Master plan Local plan underway Local plan approved Building permit stage Total building rights 1 Other rights 2
Sweden 3,800 4,100 2,700 1,100 11,700 6,400
Norway 200 0 2,500 300 3,000 400
Finland 0 1,300 3,700 900 5,900 2,900
Nordic countries 4,000 5,400 8,900 2,300 20,600 9,700
Czech Republic 200 700 300 1,600 2,800 300
Total 4,200 6,100 9,200 3,900 23,400 10,000
1 Including building rights in associated companies.
2 Entitlements to acquire building rights under certain conditions.
Residential Development, number of homes
Market Homes started Under construction Pre-sold, % Total homes sold Completed, unsold
Sweden 1,681 1,945 58 1,227 34
Norway 461 516 71 396 4
Finland 1,556 1,532 60 1,138 39
Nordic countries 3,698 3,993 60 2,761 77
Czech Republic 415 541 51 415 100
Total 4,113 4,534 59 3,176 177
40 Residential Development Skanska Review of 2010 – USD version