ANNUAL REPORT 2004 - Skanska

More documents

Recommendations

Info

Trollåsen in Askim outside Gothenburg consists of 25 freestanding, individually owned single family homes that Skanska developed and built. Buyers appreciate both the design and location of the homes, most of them featuring wooded lots and sea views. Fleischer Brygge in Moss, Norge consists of 63 apartments of varying sizes. The three buildings in the residential development were each configured in a U shape that gives all the apartments a sea view. Residents have garage spaces in the basement and their own park outside the buildings. The Kartanonkoski neighborhood in Vantaa outside Helsinki is expanding. The area includes both apartments and attached houses, which together form a garden suburb. Among the distinctive features of the neighborhood are facades in bright, varied colors and proximity to services. Markets Sweden SEK M 2004 2003 Net sales 2,046 2,109 Operating income 137 –15 Operating margin, % 6.7 0.7 Capital employed 537 561 Return on capital employed, % 25.9 –1.6 The housing market was strong during 2004. Aside from low interest rates, one explanation is several years of very low residential construction volume. During 2004 there were a total of some 28,500 housing starts in Sweden, a figure that is expected to rise during 2005. Operating income rose sharply. During the year, Skanska halved its inventory of completed unsold housing units. Norway SEK M 2004 2003 Net sales 1,234 1,024 Operating income 122 83 Operating margin, % 9.9 8.1 Capital employed 741 823 Return on capital employed, % 14.7 8.9 During 2004, there were about 30,000 housing starts in Norway. No increase is expected during 2005. Interest rates are very low and are expected to stay that way in 2005. The trend of earnings was very good. Skanska had a stable level of about 90 percent pre-sold housing units during construction. Finland SEK M 2004 2003 Net sales 1,609 1,441 Operating income 146 65 Operating margin, % 9.1 4.5 Capital employed 666 719 Return on capital employed, % 23.4 8.9 The housing market in Finland has remained stable at a high level for a number of years. A total of 30,000-35,000 housing starts occurred in 2004. The number of completed, unsold units increased during the year and operating income improved. Land prices rose sharply during 2004, a trend that now seems to have stopped. 16 Residential Project Development business stream – Skanska Annual Report 2004
Botanica, a new residential area in Prague, was designed with good environment and low energy consumption in mind. The area is located next to a park. Hundreds of trees add to its appeal. Botanica consists of four multifamily buildings with 124 apartments plus 20 attached houses. Poland SEK M 2004 2003 Net sales 116 159 Operating income 10 –26 Operating margin, % 8.6 –16.4 Capital employed 105 158 Return on capital employed, % 7.7 –12.2 The market for small, unequipped apartments in lower price segments grew during 2004, especially in Warsaw and other growing cities. For apartments in higher price segments, which include most of Skanska’s unsold apartments, the market remains depressed. Skanska does not currently intend to start any new residential development projects in Poland. Most of the remaining 109 unsold units are expected to be sold during 2005. Czech Republic SEK M 2004 2003 Net sales 523 517 Operating income 105 79 Operating margin, % 20.1 15.3 Capital employed 236 130 Return on capital employed, % 48.6 64.5 The Czech residential market remained very strong in 2004 and is expected to be the same in 2005 as well. There were about 40,000 housing starts during 2004. This heavy demand is explained both by historically low interest rates and by a coming increase in the value-added tax on housing, which goes into effect in 2008. Operating income improved during 2004. Nordic residential development under one roof Effective from 2005, Skanska’s residential project development in Sweden, Finland and Norway are being gathered into a new business unit, Skanska Project Development Residential Nordic (or PDR Nordic). The change is one element in Skanska’s intensified effort to respond to demand and become the leading residential developer in the Nordic countries. Skanska’s residential project development has shown a positive profitability trend, due to improved customer focus and increased adaptation to demand. The aim is to improve efficiency and the potential for organic growth in this business. Bringing together expertise will create greater possible synergies, among other things through integrated procurement and standardization. Skanska Project Development Residential Nordic will be a pure project development business unit. As a consequence, residential development will be decoupled from Skanska’s local construction units in the Nordic countries, which will henceforth only perform the actual construction assignment. Skanska Annual Report 2004 – Residential Project Development business stream 17
Page 1 and 2: ANNUAL REPORT 2004
Page 3 and 4: The year in brief Nordic residentia
Page 5 and 6: Skanska’s four business streams C
Page 7 and 8: STRONG RESULTS IN PROJECT DEVELOPME
Page 9 and 10: The units of the Skanska Group coll
Page 11 and 12: Financial targets and their fulfill
Page 13 and 14: Non-residential building and civil
Page 15 and 16: Currently under construction in sub
Page 17 and 18: International energy companies are
Page 19: Skanska is one of the largest resid
Page 23 and 24: Commercial Project Development is o
Page 25 and 26: Skanska Project Development - Book
Page 27 and 28: In Derby, construction is underway
Page 29 and 30: Sustainable development Our vision
Page 31 and 32: Employees It is the thousands of in
Page 33 and 34: Skanska’s Series B shares are als
Page 35 and 36: the Group’s core business will be
Page 37 and 38: Net sales and percentage outside Sw
Page 39 and 40: Net divestments in project developm
Page 41 and 42: employees. Of the members elected b
Page 43 and 44: Consolidated income statement Conti
Page 45 and 46: SEK M Note 2004 2003 SHAREHOLDERS
Page 47 and 48: Consolidated cash flow statement SE
Page 49 and 50: Parent Company balance sheet SEK M
Page 51 and 52: Notes, including accounting and val
Page 53 and 54: es the exchange rate effect when tr
Page 55 and 56: In connection with contracting assi
Page 57 and 58: Note 2 Effects of changes in accoun
Page 59 and 60: Note 3 Segment reporting The divisi
Page 61 and 62: Note 3 continued B. Secondary segme
Page 63 and 64: Credit risk Credit and counterparty
Page 65 and 66: Note 4 continued The Group’s unre
Page 67 and 68: Note 6 continued Net sales by type
Page 69 and 70: Note 11 Depreciation/amortization D
Page 71 and 72:
Note 14 Borrowing costs Borrowing c
Page 73 and 74:
Note 17 continued Information about
Page 75 and 76:
Note 19 continued Receivables from
Page 77 and 78:
Note 22 Associated companies Associ
Page 79 and 80:
Note 26 continued Number of shares
Page 81 and 82:
Note 28 continued Provisions for pe
Page 83 and 84:
Note 31 Expected recovery periods o
Page 85 and 86:
Note 32 continued Assets pledged fo
Page 87 and 88:
Note 33 continued Consolidated bala
Page 89 and 90:
Note 34 continued Relation between
Page 91 and 92:
Note 35 continued Terms for the Boa
Page 93 and 94:
Note 35 continued Absence from work
Page 95 and 96:
Note 40 continued Discontinuing ope
Page 97 and 98:
Note 42 Five-year Group financial s
Page 99 and 100:
Note 43 Definitions Interest-bearin
Page 101 and 102:
Auditors’ Report To the Annual Me
Page 103 and 104:
Corporate governance Skanska AB is
Page 105 and 106:
Annual Shareholders’ Meeting The
Page 107 and 108:
Addresses Skanska AB SE-169 83 Soln
Page 109:
Production: Skanska Investor Relati
show all

ANNUAL REPORT 2004 - Skanska

Create successful ePaper yourself

Delete template?

Save as template?