Increased revenues and strong order situation in U.S.Revenues increased by 12 percent and operating pr<strong>of</strong>it was relatively stable, mainly due to solidpr<strong>of</strong>itability in Sweden, the U.S., the U.K. and Poland. A strong order book was built up, mainlyin the U.S., indicating continued growth in this geographical market.Breakdown <strong>of</strong> order backlog, <strong>EUR</strong> 17.1 bnOperations Geographic areaDurationCustomer structureMajor global contractors 1 , revenue, June 30, <strong>2012</strong> 2, 3Company Country <strong>EUR</strong> bn SEK bnGrupo ACS 4 Spain 37.8 340.5VINCI France 37.6 338.2Bouygues France 33.0 297.0Fluor Corporation USA 19.2 173.0<strong>Skanska</strong> Sweden 14.0 125.81 Excluding Asian construction companies.2 Rolling 12 months.3 Including non-construction-related operations.4 Including <strong>EUR</strong> 26.1 billion from Hochtief AG (Germany).Sources: Half-year report 2011–<strong>2012</strong> <strong>of</strong> each respective company. Building construction,50% Civil construction, 39% Residential, 5% Service, 6%Sweden, 18% Other Nordiccountries, 12% Other Europeancountries, 21% United States, 43% Latin America, 6%1 Mainly private healthcare and educational institutions. Productionin 2013, 57% Productionin 2014–, 43%Government, 53%Institutional 1 , 15%Corp. Industrial, 16% CommercialDevelopment, 8% ResidentialDevelopment, 5% Other, 3%Major eventsRevenueEarningsOutlook2013The development in <strong>Skanska</strong>’s markets and segmentsvaried during the year:–Demand in the U.S. was strong for both civil andbuilding construction.–The Nordic market was generally stable, but deviatedin local markets.–Cuts in public-sector spending impacted Other Europeanmarkets, primarily the U.K. and Czech Republic.–Increased international competition.–Restructuring <strong>of</strong> operations in Norway and Finland.–Write-downs in <strong>Skanska</strong>’s Latin American operations.–Order bookings: <strong>EUR</strong> 13.8 billion (13.7).–Order backlog at year-end: <strong>EUR</strong> 17.1 billion (17.5).–<strong>EUR</strong> 14.3 billion (12.7).–+ 12 percent.–Operating income: <strong>EUR</strong> 399 M (384).–Operating margin: 2.8 percent (3.0).–The market for Construction is generally stable.However, considerable differences remain betweenour markets and segments, which are detailed inthe geographic market sections that follows.Generating value<strong>Skanska</strong>’s Construction business stream performsbuilding, civil and residential construction. It alsoperforms assignments <strong>of</strong> a service-related nature, suchas construction services and facility operation andmaintenance.In keeping with <strong>Skanska</strong>’s business model, Constructionalso performs construction works for <strong>Skanska</strong>’s otherbusiness streams in the development <strong>of</strong> commercial andresidential properties, as well as infrastructure. Thiscollaboration generates both large construction assignmentsand synergies for the Group.Potential projects and synergies are also createdthanks to the financial capabilities <strong>of</strong> the Group.<strong>Skanska</strong> Financial Services <strong>of</strong>ten helps to arrangefinancial solutions.A combination <strong>of</strong> financial strength and global expertisein project development and construction enables<strong>Skanska</strong> to take on large, complicated projects for internationalcustomers with strict standards <strong>of</strong> quality andexecution. In the very largest projects, which requirehigh-level performance guarantees, few competitorscan measure up to <strong>Skanska</strong> in expertise and strength.With its focused risk assessment work in the tenderstage, <strong>Skanska</strong> has been able to concentrate on winningthe right projects, which provide a balance betweenrisk level and expected margin. <strong>Skanska</strong>’s ambitionis to increase its share <strong>of</strong> negotiated contracts, wherecustomers value service level, quality and reliability inaddition to price in their tender evaluation. <strong>Skanska</strong>’sclear focus on sustainable development – such as worksite health and safety, ethics and the environment – isalso a factor that strengthens the customer <strong>of</strong>fering.30 Construction Substantial growth Growth Stable Decline Significant decline<strong>Skanska</strong> <strong>Review</strong> <strong>of</strong> <strong>2012</strong> – <strong>EUR</strong> version
17.1<strong>EUR</strong>Order backlogbnOrder backlog, revenue and order bookingsBreakdown <strong>of</strong> order backlog, <strong>EUR</strong> 17.1 bn<strong>EUR</strong> bnServices, %2015Building ResidentialBusiness unit Civil construction construction constructionServicesSweden 23 63 14 0Norway 40 48 12 010Finland 20 50 26 4Poland 48 50 2 05Czech Republic 54 41 5 0United Kingdom 26 43 1 3002008Q1 Q2 Q3 Q42009Q1 Q2 Q3 Q42010Q1 Q2 Q3 Q42011Q1 Q2 Q3 Q42011Q1 Q2Order backlogRevenue, rolling 12 month basisOrder bookings, rolling 12 month basisOrder booking per quarterQ3Q4USA Building 0 100 0 0USA Civil 100 0 0 0Latin America 63 0 0 37Constructing Boeing’s new delivery centerThe Boeing Company is the world’s largest aircraft manufacturer. The main part <strong>of</strong> its manufacturingoperations takes place in Renton, Seattle and Everett in Washington state, on the U.S. West coast.<strong>Skanska</strong> has extensive cooperation with Boeing, which expands and upgrades its facilities on a continuousbasis. In <strong>2012</strong>, <strong>Skanska</strong> commenced the construction <strong>of</strong> a new delivery center at Boeing’s airfield inEverett. The building is basically a fully equipped airport terminal with a restaurant and facilities forconferences and the handover <strong>of</strong> aircraft. Here, Boeing’s customers will learn about their new aircraftprior to delivery. The terminal will accommodate three large Boeing jets simultaneously. The building,which will be environmentally certified to LEED Silver level, is approximately 16,000 sq m and threestories high. <strong>Skanska</strong>’s contract, including additional orders, amounts to USD 65 M, approximately <strong>EUR</strong>51 M. More than 250 employees are involved in the project, which is scheduled for completion in 2013.<strong>Skanska</strong> <strong>Review</strong> <strong>of</strong> <strong>2012</strong> – <strong>EUR</strong> version Construction 31
- Page 1: Review of 2012EUR version
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Annual Shareholders’ MeetingInves