Annual Report 1999 - Skanska

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EmployeesSkanska has 45,000 employees in some 50 countries. The Group’soperations are characterized by decentralization, and many employeeissues are handled locally. Development and evaluation of managersoccurs at the global level, however, in order to ensure a good supplyof managers in the Group.● 18 Skanska Annual Report 1999To a great extent, Skanska’s business operationsare very local and are characterized bydecentralization.Traditions and expertise levels largely determinehow construction operations aremanaged in different countries. In Europe,Skanska works largely with its own employeesin all phases of the value circle. In theUnited States, however, it is more commonfor Skanska to be responsible for project andconstruction management, while constructionwork occurs with the help of subcontractors.One consequence is that the talent requirementsand methods for recruiting, developingand managing employees vary betweendifferent regions and operations. Eachunit must therefore, to a great extent, handleemployee issues relatively independently.Manager evaluation, assessment and developmentoccurs on a global basis, however,in order to ensure a good supply of managersin key positions.The Skanska Management Institute(SMI) has the main responsibility for managementdevelopment. During 1999, about200 employees participated in various managementdevelopment activities at SMI.Among these are the Skanska LeadershipProgram, a training course for young managementcandidates, and the Skanska ManagementProgram, which presents a strategicand international perspective on the role ofmanagers. The Skanska Leadership Academyalso gives managers an opportunity to undergoindividually tailored developmentprograms.The overall ambition is to ensure managementdevelopment in Skanska’s variousnational operations. Through these commonactivities, we also provide Skanska’smanagers with a common set of values, increasecollaboration, stimulate mobility andpromote exchanges of knowledge and experiencebetween companies and countries.The strong growth in the Group’s U.S. operations,for example, has opened up opportunitiesfor employees from its European operationsto participate in individual projects,with the transfer of know-how that this entails.One element in the task of ensuring thefuture supply of managers is to show studentsat universities and institutes of technologythe opportunities that exist at Skanska.In the Nordic countries, there isconsequently a trainee program, Skanska 21,aimed at young undergraduate engineersduring their training at institutes of technology.The program gives these students anopportunity to become familiar with Skanska’sglobal operations at an early stage. Between20 and 30 students participate in theprogram annually, and it is now in its fourthyear. Skanska 21 is a good and importantNordic recruitment base for future managersand specialists.SMI also works with a number of tools toevaluate and assess prioritized leadershipcharacteristics. One is the Skanska ManagerEvaluation System. Another activity is theManager Exchange Program, whose aim isto help increase mobility between differentpositions.The construction sector is traditionallymale-dominated. Skanska endeavors,through its recruitment work and other activitiessuch as mentorship programs forwomen, to create a better balance betweenmen and women in the Group. Of Skanska’semployees in 1999, 11 percent were women.In Sweden, as elsewhere in Europe, Skanskais actively working to change its agestructure and increase the percentage ofyoung employees. Another aim is to increasethe percentage of its white-collar employeeswho have a university-level education. Theadjacent chart refers to Swedish operations.However, both the age and educationalstructure there are representative of largeportions of the Group outside Sweden as well.In 1999, the Skanska Group had 45,063 em-ployees, of whom 29,013 worked outsideSweden.The number of employees in the variouscountries where Skanska operates can beseen in the table on page 10.50403020100%Managers-3637-4647-5657-Educational level,white-collar employeesLess than uppersecondary13 (14)%Upper secondary 42 (45)%Post-secondary(3 years) 26 (23)%Age structure, yearsGraduateengineersOtherwhite-collaremployeesSkilled workers
OrganizationSkanska’s organization is based on its various markets and fields of operations.Its structure provides the Group with an overview in marketingefforts and an opportunity for client focus. Three strategic service companiessupply important support functions to the Group’s business areas.Net sales bybusiness areaSkanska’s operations are organized into a ParentCompany, Skanska AB, with five businessareas and three strategic service companies.The Group also has staff units for corporate finance,accounting, finance, investor relations,information technology, legal affairs, communications,environment and personnel.Contracting operations, which provideservices related to building and civil construction,take place in the Skanska Sweden,Skanska USA and Skanska Europe businessareas. These three business areas possessproduct-oriented specialist knowledge as wellas project development know-how.The Project Development and Real Estatebusiness area – which focuses on project developmentwhere Skanska invests its ownfunds – is also responsible for the development,management and divestment of theGroup’s investment properties. Project developmentnormally assumes the form of collaborationbetween one of the business areasthat performs contracting operations andSkanska Project Development and Real Estate.Beginning in March 2000, the Group’soperations in the field of facilities managementtake place in a separate business area,Skanska Services.The three strategic service companies areSkanska Teknik (development of specializedtechnical expertise), Skanska Financial Servicesand Skanska IT Solutions (informationtechnology). The specialized know-how ineach of these companies supports the operationsof all business areas.SKANSKA ABUSA 43 (36)%Sweden 29 (34)%Europe 26 (28)%ProjectDevelopmentand Real Estate 2 (2)%Capital employedby business areaUSA 12 (7)%Sweden 18 (21)%Europe 30 (32)%ProjectDevelopmentand Real Estate 40 (40)%SKANSKA SWEDENSKANSKA EUROPESKANSKA USASKANSKAPROJECT DEVELOPMENTAND REAL ESTATESKANSKA SERVICES *SKANSKA UNDERGROUND SKANSKA CENTRAL ANDCONSTRUCTION & BRIDGES EASTERN EUROPESKANSKA RESIDENTIAL SKANSKA INTERNATIONALCONSTRUCTIONSKANSKA SCANDINAVIASKANSKA COMMERCIALSKANSKA GREAT BRITAINBUILDINGSSKANSKASKANSKA INDUSTRIALWESTERN EUROPECONSTRUCTIONCOMPONENTSSKANSKA INTERNATIONALCIVIL ENGINEERINGSKANSKA ROADCONSTRUCTIONSUNDLINK (37%)SKANSKA IT SOLUTIONS* New business area effective in March 2000.BEERSKOCH SKANSKASADESLATTERY SKANSKASORDONI SKANSKASPECTRUM SKANSKATIDEWATER SKANSKASTRATEGIC SERVICE COMPANIESSKANSKA TEKNIKSKANSKA BOTSKANSKA REAL ESTATESTOCKHOLMSKANSKA REAL ESTATEGOTHENBURGSKANSKA PROJECTDEVELOPMENT EUROPESKANSKA PROJECTDEVELOPMENT SWEDENSKANSKA ØRESUNDSKANSKAFINANCIAL SERVICESSKANSKA FACILITIESMANAGEMENT● 19 Skanska Annual Report 1999
Page 1 and 2: Annual Report 1999
Page 4 and 5: ContentsContents 2Comments by the P
Page 6 and 7: Comments by thePresident and CEOSka
Page 8 and 9: Mission, goalsand strategySkanska
Page 10 and 11: Markets,competitorsand clientsSkans
Page 12 and 13: Employees and net sales by country/
Page 14 and 15: Order backlog by totalnumber of ord
Page 16 and 17: Project developmentSkanska’s proj
Page 18 and 19: The environmentIn Skanska’s judgm
Page 22 and 23: Skanska USASkanska USA includes the
Page 24 and 25: The Big Dig,BostonBoston’s Centra
Page 26 and 27: Skanska SwedenSkanska Sweden includ
Page 28: Bo KlokA joint venture betweenSkans
Page 31 and 32: Percentage ofSkanska’s net salesP
Page 34 and 35: SkanskaProject Developmentand Real
Page 36 and 37: ness area operates, Budapest develo
Page 38 and 39: Stadshagen,StockholmA new urban re-
Page 40 and 41: Strategicservice companiesThe Skans
Page 42 and 43: Share data● 40 Skanska Annual Rep
Page 44 and 45: Five-year groupfinancial summary 1
Page 46 and 47: Report of the DirectorsStructural c
Page 48 and 49: Share of income in associated compa
Page 50 and 51: ● 48 Skanska Annual Report 1999Re
Page 52 and 53: Consolidatedincome statementSEK M N
Page 54 and 55: Consolidatedbalance sheetSEK M Note
Page 56 and 57: Comments onthe balance sheetThe bal
Page 58 and 59: Parent Companyincome statementSEK M
Page 60 and 61: SEK M Note 1999 1998SHAREHOLDERS’
Page 62 and 63: Accounting andvaluation principles
Page 64 and 65: Notes to thefinancial statementsAmo
Page 66 and 67: ● 64 Skanska Annual Report 1999No
Page 68 and 69: Note 17Income from financial curren
Page 70 and 71:
Note 23Holdings in Group companiesS
Page 72 and 73:
Note 30Provisions for pensionsand s
Page 74 and 75:
Note 40Adjustments for items not in
Page 76 and 77:
Proposed allocationof earningsThe B
Page 78 and 79:
Property list 1Investment propertie
Page 80 and 81:
County, municipality, Year built/ L
Page 82 and 83:
Board of Directorsand AuditorsBo Ry
Page 84 and 85:
Annual Shareholders’MeetingThe An
Page 86:
Nybron GroupNybron ABBox 805SE-382
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Annual Report 1999 - Skanska

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