Annual General Meeting Stockholm, April 13, 2018 April 13, 2018 - PowerPoint PPT Presentation

Annual General Meeting Stockholm, April 13, 2018 April 13, 2018 Skanska Annual General Meeting 1

Anders Danielsson President and CEO We build for a better society. Watermark Seaport, 101 Seaport, 121 Seaport, Boston, USA April 13, 2018 Skanska Annual General Meeting 2

New Group Leadership Anders Danielsson Magnus Persson Caroline Fellenius-Omnell Team President and Executive Vice President, Executive Vice President, Chief Executive Officer Chief Financial Officer General Counsel Claes Larsson Richard Kennedy Kirsi Mettälä Executive Vice President Executive Vice President Executive Vice President, Human Resources April 13, 2018 Skanska Annual General Meeting 3

The Group Revenue and profit SEK bn 2017 2016 Revenue 160.8 151.3 Profit for the year 4.9 6.5 April 13, 2018 Skanska Annual General Meeting 4

Financial targets 2016–2020 Outcome Target 2017 Project Development ≥ 10% 14.5% Return on capital employed Construction ≥ 3.5% 0.8% Operating margin can be Group 9.7 negative Financial strength, SEK bn ≥ 18% 18.6% Return on equity April 13, 2018 Skanska Annual General Meeting 5

A strong balance sheet SEK M 25,000 20,000 15,000 10,000 5,000 0 2014 2015 2016 2017 Investment capacity Investments in Project Development April 13, 2018 Skanska Annual General Meeting 6

Construction Project Development James A. Farley Post Office Building, New York, USA Our Residential Development business BoKlok Production Plant Gullringen Sweden Commercial Property Development Five Prague Czech Republic Infrastructure Development LaGuardia New York USA April 13, 2018 Skanska Annual General Meeting 7

Residential Development BoKlok Production Plant, Gullringen, Sweden April 13, 2018 Skanska Annual General Meeting 8

Residential Development SEK bn 2017 2016 Revenue 13.2 13.3 Operating income 1.7 1.6 Operating margin, % 13.0 12.1 Return on capital employed, % 15.4 17.1 Kruunuvuorenranta, Helsinki, Finland April 13, 2018 Skanska Annual General Meeting 9

Residential Development Market outlook 2018 Nordics Europe BoKlok Flex Strandallén Södertälje, Sweden April 13, 2018 Skanska Annual General Meeting 10

Commercial Property Development Five, Prague, Czech Republic April 13, 2018 Skanska Annual General Meeting 11

Commercial Property Development Capital employed – distribution by market 1 USA Nordics 31% 36% Seattle Boston Helsinki Oslo Stockholm Washington DC Gothenburg Malmö Gdańsk Houston Copenhagen Warszawa Poznań Łodz Wrocław Katowice Prague Kraków Ostrava Budapest Europe Bucharest 33% 1 As of Dec 31, 2017 April 13, 2018 Skanska Annual General Meeting 12

Commercial Property Development SEK bn 2017 2016 Investments 10.7 8.4 Ongoing projects Number of projects 46 47 Total investments 27.6 20.3 New leases, sq m (000) 477 379 Estimated surplus value 7.9 7.2 Sundtkvartalet, Oslo, Norway April 13, 2018 Skanska Annual General Meeting 13

Commercial Property Development SEK bn 2017 2016 Revenue 11.4 10.2 Operating income 2.7 2.3 3.5 1 of which gain on sale 3.1 Return on capital employed 2 , % 15.5 14.8 1 Inclusive joint ventures The Monument Building 2 Adjusted London, UK April 13, 2018 Skanska Annual General Meeting 14

Commercial Property Development Market outlook 2018 Nordics Europe USA 121 Seaport, Boston, USA April 13, 2018 Skanska Annual General Meeting 15

Infrastructure Development LaGuardia, New York, USA April 13, 2018 Skanska Annual General Meeting 16

Infrastructure Development Projects in the portfolio 5 of which completed 2 ongoing 3 SEK bn 2017 2016 Portfolio, net present value 3.0 4.3 Unrealized development gain (estimated) 0.5 1.4 I-4 Ultimate, Florida, USA April 13, 2018 Skanska Annual General Meeting 17

Infrastructure Development SEK bn 2017 2016 Operating income 0.9 1.8 of which gain on sale 1.0 1.7 Autostrada A1, Gdańsk , Poland April 13, 2018 Skanska Annual General Meeting 18

Infrastructure Development Market outlook 2018 Focus on USA Monitoring development in Europe Elizabeth River Tunnels, Norfolk, USA April 13, 2018 Skanska Annual General Meeting 19

Construction James A. Farley Post Office Building, New York, USA April 13, 2018 Skanska Annual General Meeting 20

Construction SEK bn 2017 2016 Order bookings 151.8 170.2 Book-to-Build, % 101 123 Order backlog 188.4 196.3 Slussen, Stockholm, Sweden April 13, 2018 Skanska Annual General Meeting 21

Construction SEK bn 2017 2016 Revenue 150.1 138.0 Operating income 1.2 3.5 Operating margin, % 0.8 2.6 Free working capital -21.8 -22.5 Regional Connector, Los Angeles, USA April 13, 2018 Skanska Annual General Meeting 22

Strategic initiatives − Implement a decentralization − Downsize unprofitable units − Implement a major restructuring in Poland − Exit from the US energy market − Focus on core business in the UK − Focus on infrastructure development in the US − Finally, continue to grow in the profitable residential and commercial property development sectors April 13, 2018 Skanska Annual General Meeting 23

Construction Market outlook 2018 Nordics Europe USA European Spallation Source (ESS) Lund, Sweden April 13, 2018 Skanska Annual General Meeting 24

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We build for a better society. Highway 6 Taavetti-Lappeenranta, South Karelia, Finland April 13, 2018 Skanska Annual General Meeting 27