Annual Report 2000 - Skanska

Dedicated employeesThe positive developments at Skanska last yearwere a result of extraordinary contributions by ouremployees. The key to continued success lies intheir dedication, as well as in our ability to retainand recruit capable employees. We must thereforebe able to offer attractive assignments and varioustypes of human resource development. The managerevaluation and reward systems we work withare vital in this context.Social developments and environmental responsibilityConstruction affects overall social developments,as well as the physical environment. These aspectsare thus of key importance to Skanska’s operationsand play an increasingly important role in our dialoguewith clients. Our certified environmentalmanagement system is now helping to strengthenour competitiveness, especially in an internationalperspective. Although we have come a long way inthis field, we still have a lot to do in order tobecome even better, both at the overall level andat individual work sites. We are now continuingour efforts toward this end.Core business and capital structureThe process that we initiated a number of yearsago in order to focus more sharply on our corebusiness has now essentially been completed. Thishas freed up capital that we have primarily investedin our core business, but that has also directlybenefited our shareholders, by means of dividendsand other forms of capital transfers. The Board ofDirectors is proposing that the Skanska sharesrepurchased by the Company since the last AnnualMeeting be cancelled, which implies an adjustmentin Skanska’s capital structure.Our capital base remains strong, something Iregard as an important precondition for successfulGroup business development. The new share buybackprogram that the Board is proposing will meanwhileallow further adjustments during the comingyear. In order to increase the liquidity of Skanskashares, the Board is also proposing a split, with shareholdersreceiving four new shares for each old one.Outlook for 2001Order bookings remained good early in the year,thereby further strengthening the order situation.The businesses that we recently acquired, as well asSkanska’s own project development, also have significantprofitability potential. My overall judgmentis therefore that earnings in our core business willincrease during 2001 compared to last year.Stockholm, March 2001CLAES BJÖRKPresident and CEOCOMMENTS BY THE PRESIDENT AND CEO Skanska Annual Report 2000 5