Annual Report 2000 - Skanska

Profitable growthSkanska’s performance in recent years has been characterized by strong growthand a sharper focus on its core business. Over a three-year period, net sales andorder bookings more than doubled. Order backlog more than tripled. At the endof 2000 it was equivalent to 14 months of construction.This is a result of Skanska’s strategy of growing in selected markets, where theGroup’s position has been strengthened by significant organic growth as well asby acquisitions.Meanwhile the Group’s range of services in its building and civil constructionbusiness is broadening. Skanska’s role in projects is broadening to include design,financial solutions and project management.In addition, new construction-related services are emerging, for exampleSkanska’s facilities management business. The expansion of infrastructure in thetelecom sector is also generating new opportunities for Skanska.The broadening of Skanska’s core business to new geographic markets andinto new services has occurred concurrently with the divestment of its non-corebusinesses and assets.SEK bn1201008060402001993Growth in perspective,net sales2000Acquisitions18%Organic82%Skanska’s model for profitable growthDeveloping new businessesTelecomFMBOTProjectdevelopmentCivilconstructionBuildingconstructionCore competence……in an expanded market%4035302520151050Growth factors1998–2000 (net sales)199819992000SwedenNordiccountriesCentralEuropeWesternEuropeUnited StatesEstablishing operations in new marketsLatinAmericaAsiaAcquisitionsCurrency rate effectsOrganic growth8 PROFITABLE GROWTH Skanska Annual Report 2000