Review of 2010 – USD version - Skanska

United States 28%
Business streams:
Construction, Commercial Property Development
Project:
Page
Manhattan Bridge, New York City 22
Tampa Museum of Art, Florida 28
New Meadowlands Stadium, New Jersey 30–31
Alaskan Highway Viaduct, Seattle 32–33
Solar panels, Skanska Koch, Carteret, NJ 62
733 10th Street, Washington, D.C. 65
Solar panels, Cortez, Colorado 68
30
22
Skanska’s business plan for 2011–2015
focuses on profitable growth. After
several years of successful consolidation,
the Group has a stable base for growth
in its four business streams.
The Group’s strategy is to maintain a strong focus on
profitability and capital efficiency, while growing in
construction and project development. Skanska will step
up the pace of reinvestments of cash flow from construction
in order to grow its project development business streams.
Latin America 5%
Argentina, Brazil, Chile, Colombia,
Peru, Venezuela
Business streams:
Construction and Infrastructure Development
Project:
Page
Petrochemical Complex, Rio de Janeiro, Brazil 29
Autopista Central, Santiago, Chile 58–59
29
58
Financial targets
Skanska’s target for annual return on equity during the
period is 18–20 percent. Its dividend policy is to distribute
40–70 percent of net income.
Investments in project development − residential,
commercial property and infrastructure development −
will increase, with a continued high asset turnover rate.
Skanska’s target for its three investment business streams
combined is that their return on capital employed shall
amount to 10–15 percent annually.
Construction
Construction operations shall increase in volume by
capturing market share while maintaining good margins.
The targeted margin for the Construction business
stream is being set at an average of 3.5–4 percent over an
business cycle, which will place Skanska among the best
in the construction industry.
Residential Development
Qualitative targets − the five zeros vision
0
Skanska’s values are based on the Company Code of Conduct and are
expressed in the qualitative targets − the five zeros vision.
loss-making projects
environmental incidents
work site accidents
ethical breaches
defects
Residential Development shall expand, aiming to become
the leading residential developer in the Nordic countries,
increase volume in the Czech Republic and Slovakia and
also start operations in the United Kingdom and Poland.
Commercial Property Development
Development of commercial properties with a strong
green profile shall grow in accordance with Skanska’s
successful concept from Sweden and Central Europe.
These operations are expanding to the U.S. cities of
Washington D.C., Boston, Houston and Seattle as well
as to Oslo, Norway and to regional growth centers
in Poland.
Infrastructure Development
Investments in infrastructure development projects shall
increase in those markets where Skanska has construction
operations, taking advantage of new opportunities
in the U.S. and Central Europe as well as in such new
sectors as street lighting and energy production plants
using waste combustion.