Review of 2010 – USD version - Skanska

Earnings per share
USD
1.6
Investments
Investments/Divestments
1.4
1.2
USD M 2010 2009
Operations − Investments
Intangible assets –10.0 –8.1
1.0
Property, plant and equipment –185.6 –166.3
0.8
0.6
0.4
Assets in Infrastructure Development –96.0 –58.1
Shares –21.5 –16.7
Current-asset properties –1,178.1 –973.7
Of which Residential Development –744.6 –406.8
0.2
Of which Commercial Property Development –433.5 –567.0
09
2010
0.0
2006 2007 2008 2009 2010
Comparative figures for 2006–2008 have not been adjusted for the effects of IFRIC 12 and 15.
Investments –1,491.3 –1,223.0
Operations − Divestments
Intangible assets 0.6 0.0
Comprehensive income for the year
Property, plant and equipment 33.3 52.4
Assets in Infrastructure Development 55.9 17.9
Comprehensive income for the year
Shares 2.2 0.3
USD M 2010 2009
Current-asset properties 1,658.6 1,324.8
Profit for the year 558.8 551.5
Of which Residential Development 744.5 773.7
Other comprehensive income
Translation differences attributable to equity holders –51.6 204.7
Of which Commercial Property Development 914.1 551.2
Divestments 1,750.6 1,395.4
Translation differences attributable to non-controlling
interests –2.1 –0.7
Hedging of exchange rate risk in foreign operations 14.9 –53.5
Effects of actuarial gains and losses on pensions 123.3 99.8
Effects of cash flow hedges 1 17.6 –52.1
Tax attributable to other comprehensive income –40.6 –30.4
Net investments/divestments in operations 259.3 172.4
Strategic investments
Acquisitions of businesses 0.0 –1.3
Acquisitions of shares 0.0 –6.7
Strategic investments 0.0 –8.0
Other comprehensive income for the year 61.6 167.8
Strategic divestments
Divestments of businesses 0.6 0.0
Total comprehensive income for the year 620.4 719.3
Total comprehensive income attributable to
Equity holders 621.6 719.3
Divestments of shares –2.6 0.0
Strategic divestments –2.1 0.0
Non-controlling interests –1.2 0.0
Net strategic investments/divestments –2.1 –8.0
1 Of which in joint ventures and associated companies –20.7 –75.5
Total net investments/divestments 257.2 164.4
“Other comprehensive income for the year” amounted to USD 61.6 M
(167.8). The change in translation differences attributable to equity
holders totaled USD –51.6 M (–204.7). This item − which consists of
the change in accumulated translation differences when translating the
financial reports of operations outside Sweden, as well as exchange rate
differences that have arisen when hedging net investments in operations
outside Sweden − mainly includes negative translation differences
in currencies such as euros, Polish zloty and Czech korunas. About 30
percent of net investments outside Sweden were currency hedged during
2010, which contributed a positive effect of USD 14.9 M (–53.5) to
“Other comprehensive income for the year”. See also Note 6.
The effects of actuarial gains and losses on pensions totaled
USD 123.3 M (99.8). This positive impact was due to higher discount
rates and a return on pension plan assets that exceeded actuarial
assumptions. The higher discount rates were primarily a consequence of
a new benchmark interest rate for Skanska’s Swedish pension liabilities.
Effects of cash flow hedges amounted to USD 17.6 M (–52.1). Hedge
accounting is applied primarily in the Infrastructure Development business
stream and the operations of Skanska Poland. The item includes
changes in unrealized gains and losses on hedging instruments. It
included an unrealized loss of about USD –20.7 M related to fair value
measurement of interest rate swaps from joint venture companies in
Infrastructure Development operations, mainly in the U.K. Interest rate
swaps are used for long-term hedging of interest expenses related to certain
long-term Infrastructure Development projects.
Unrealized gains related to currency swaps included about
USD 37.7 M in Polish operations. Total comprehensive income for the
year amounted to USD 620.4 M (719.3).
Depreciation/amortization, non-current assets –180.5 –193.0
The Group’s investments totaled USD –1,491.3 M (–1,231.0). Divestments
totaled USD 1,748.5 M (1,395.4), and the Group’s net divestments
amounted to USD 257.2 M (164.4).
Investments in property, plant and equipment, which mainly consisted
of continuous replacement investments in operations, amounted to
USD –185.6 M (–166.3). Divestments of property, plant and equipment
amounted to USD 33.3 M (52.4).
Depreciation on property, plant and equipment amounted to
USD –169.5 M (–182.4).
Net divestments in current-asset properties amounted to
USD 480.5 M (351.1). Projects were sold for USD 1,658.6 M (1,324.8),
while investments amounted to USD –1,178.1 M (–973.3).
In Residential Development, investments in current-asset properties
amounted to USD –744.6 M (–406.8) and total investments amounted
to USD –771.6 M (–448.2), of which about USD –260.3 M was related
to acquisitions of land equivalent to 5,347 building rights. Completed
homes were sold for USD 744.5 M (773.7).
In Commercial Property Development, investments in current-asset
properties amounted to USD –433.5 M (–567.0), and total investments
amounted to USD –436.6 M (–561.7). Of this, USD –111.8 M was related
to investments in land. Divestments of current-asset properties totaled
USD 914.1 M (551.2). Net divestments of current-asset properties in
Commercial Property Development amounted to USD 480.6 M (–15.8).
Investments in the form of equity and subordinated loans in Infrastructure
Development amounted to USD –96.0 M (–58.1). Divestments
amounted to USD 55.9 M (17.9) and were related to the sale of Skanska’s
50 percent stake in the Orkdalsvegen highway in Norway and repayment
of subordinated loans from several projects. Net investments in
Infrastructure Development totaled USD –40.1 M (–40.2).
Skanska Review of 2010 – USD version Report of the Directors 73