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Skanska Interim / Quarterly Report 2021
2972_10-q_2021-04-29_f6dc8304-5b71-4664-a51e-255306e03c07.pdf
Interim / Quarterly Report
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2 SKANSKA
2021
Pros release, April 19, 2021, 7:39 a.m. CET
We build for a better society.
Epic, Malmö, Sweden
Pressrelease, April 29, 2021, 7:30 a.m. CET
Three month report, January–March 2021
Highlights according to segment reporting
- Revenue amounted to SEK 34.4 billion (41.2); adjusted for currency effects revenue decreased 10 percent.
- Operating income amounted to SEK 2.3 billion (2.9); adjusted for currency effects operating income decreased 17 percent.
- Earnings per share amounted to SEK 4.59 (5.78).
- Operating cash flow from operations amounted to SEK 3.3 billion (1.6), according to IFRS.
- Adjusted interest-bearing net receivables (+)/net debt (-) totaled SEK 15.9 billion (December 31, 2020: 16.0), according to IFRS.
- Order bookings in Construction amounted to SEK 34.9 billion (41,3); adjusted for currency effects order bookings decreased 9 percent. The order backlog amounted to SEK 193.4 billion (December 31, 2020: 178.9).
- Operating income in Construction amounted to SEK 0.7 billion (0.6), representing an operating margin of 2.5 percent (1.6).
- Operating income in Project Development amounted to SEK 1.7 billion (2.5).
- Return on capital employed in Project Development was 10.5 percent (14.8).
- Return on equity was 23.9 percent (27.0).
Performance Analysis
Tables referring to segment reporting are in shaded background. For more information see page 14. For definitions of non-IFRS financial measures see pages 15-17.
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Revenue | |||
| Construction | 29,354 | 35,939 | -18 |
| Residential Development | 4,509 | 3,400 | 33 |
| Commercial Property Development | 2,605 | 4,759 | -45 |
| Central and Eliminations | -2,078 | -2,931 | -29 |
| Total | 34,390 | 41,166 | -16 |
| Operating income | |||
| Construction | 722 | 589 | 23 |
| Residential Development | 669 | 394 | 70 |
| Commercial Property Development | 1,066 | 2,112 | -50 |
| Central | -104 | -121 | -14 |
| Eliminations | -27 | -73 | -64 |
| Operating income | 2,327 | 2,901 | -20 |
| Net financial items | -48 | -48 | 0 |
| Income after financial items | 2,278 | 2,853 | -20 |
| Taxes | -386 | -469 | -18 |
| Profit for the period | 1,892 | 2,383 | -21 |
| Earnings for the period per share, SEK | 4.59 | 5.78 | -21 |
| Revenue for the period according to IFRSs | 32,644 | 40,340 | -19 |
| Operating income for the period according to IFRSs | 1,444 | 1,482 | -3 |
| Earnings for the period per share according to IFRSs, SEK | 2.82 | 2.91 | -3 |
| Operating cash flow from operations | 3,264 | 1,631 | 100 |
| Interest-bearing net receivables (+)/net debt (-) | 8,793 | -3,243 | - |
| Return on capital employed in Project Development, %1 | 10.5 | 14.8 | |
| Adjusted interest-bearing net receivables (+)/net debt (-) | 15,947 | 5,294 | |
| Return on equity, %1 | 23.9 | 27.0 |
1 Rolling 12 months.
Revenue
Operating income
Operating income per segment, Mar 31, 2021, R-12
Operating cash flow from operations
Skanska Three month report, January–March 2021
3
Strong performance across our operations
Performance in the first quarter of 2021 reaffirms our strong position, stability in our performance and our ability to deliver in line with our strategic priorities. In our Construction operations, profitability improved across the board. Residential Development continued to show strength and attractive divestment gains were yet again delivered in Commercial Property Development. The pandemic is still present and therefore uncertainty in our markets remains. We are navigating these uncertainties well, we are taking care of our people, assuring high quality and sustainable deliveries to our customers. At the same time we are seizing new opportunities, ensuring continued long-term value creation for our shareholders.
In our operations, the focus on health and safety and reducing carbon emissions continues. Our business units are developing and executing on plans adapted to each respective market and operation with the long-term ambition of eliminating both accidents and emissions, across the value chain.
In Construction, profitability continues to strengthen in all our business units and we expect additional improvement by sticking to our strategy. Being selective in our bidding and focusing on commercial management are the key elements driving this progress. This has to some extent impacted revenue negatively, but the main reason to the lower revenue is the pandemic which started to delay decisions on new investments by our customers during the second quarter 2020.
In Residential Development, activity is very high, and profitability is improving from already strong levels. The number of sold and started homes increased and the number of homes under production is increasing. With current vigorous demand, our stock of unsold homes is relatively low. We are focusing on meeting this market demand by starting new projects, coming out of our robust land bank and pipeline. Longer term, we have a bit more cautious view of the market as the effects of the pandemic on unemployment and consumer confidence remain to be seen.
In Commercial Property Development, both our Nordic and Central European operations divested developments of high quality and environmental standard, at very attractive levels during the quarter. This, once again, proves that investor demand is strong and that we have an attractive offering. Leasing activity continues to be negatively impacted by tenant uncertainty due to the pandemic. We are in many good discussions, but tenants are still awaiting more clarity on the market situation for their operations and for society to open up again.
We are starting to see early signs of reduced uncertainties and increased activity in our markets, especially among our private customers in Construction. The longer term effects of the pandemic remain to be seen but we are well positioned to manage challenges and grasp opportunities ahead of us. In doing so, we are ensuring that we deliver in line with our strategy to improve profitability in Construction and increase activity in Project Development.
Epic, Malmö, Sweden
Located in the heart of Malmö, Sweden, Epic welcomes you into 12,000 square meters of flexible, smart office and retail space with health and wellbeing as its core. Surrounded by the thriving spirit of Malmö's university, startups, and arts & culture, the two buildings are joined by a flourishing, bright atrium with central stairs inviting you up to any of the six floors overlooking the city's harbor. Recognized by the internationally acclaimed WELL pre-certification, Epic's philosophy of sustainable goes beyond its features. It's a lifestyle. Whether it's the ground floor bike hotel, the activity-based office design that emphasizes wellness and comfort, or the nearby nourishing restaurants and cafés, there's an array of healthier choices for a more productive, sustainable every day. This mindset extends to its construction as well, where the use of upcycling and circular materials have been central in the reduction of carbon emissions. Inspired by 20th century port cities, Epic is designed by the architects at Yellow and is self-developed by Skanska. Construction began in 2017 and was completed in 2020.
Skanska Three month report, January–March 2021
Market outlook, next 12 months
- Weaker outlook compared to previous quarter.
- Unchanged outlook compared to previous quarter.
- Improved outlook compared to previous quarter.
- Very strong market coming 12m
- Strong market coming 12m
- Stable market coming 12m
- Weak market coming 12m
- Very weak market coming 12m
Construction
While the pandemic continues to have a negative impact on demand in commercial office building construction, the outlook for other non-residential and residential construction is improving. The public spending into social infrastructure and infrastructure is keeping up relatively well, even though some decisions are being postponed. Funding could be a challenge as public budgets are decreasing due to lower tax revenue and being consumed to fight the pandemic and to stimulate the economies. At the same time, ambitious investment plans are under development in many of our markets, but lead-times are expected to be long.
| Building, non-residential | Building, residential | Civil | |
|---|---|---|---|
| Hordics | |||
| Sweden | ♂ | ♂ | ♂ |
| Norway | ♂ | ♂ | ♂ |
| Finland | ♂ | ♂ | ♂ |
| Europe | |||
| Poland | ♂ | ♂ | ♂ |
| Czech Republic¹ | ♂ | ♂ | ♂ |
| United Kingdom | ♂ | – | ♂ |
| USA | |||
| USA | ♂ | – | ♂ |
1 Including Slovakia.
Residential Development
Low interest rate policies to support a recovery in the economies are improving affordability which strengthens the consumer confidence. The housing market is experiencing a shortage as new developments have slowed significantly, even though signs of increased activity among developers have been noted recently. The risk of increasing unemployment levels, as a consequence of an economic slowdown due to the pandemic, could potentially impact demand negatively. To some extent, a structural shortage of housing in many of our markets could mitigate that situation.
| Hordics | |
|---|---|
| Sweden | ♂ |
| Norway | ♂ |
| Finland | ♂ |
| Europe |
Tigergården - Ensjø Torg, Oslo, Norway
Commercial Property Development
The number of transactions and new developments have decreased due to the market uncertainty. The credit market is however stable. Investor appetite for high quality developments is expected to be solid at about current yield levels. Leasing has slowed significantly, mainly due to tenant uncertainty. The activity is expected to recover but there will likely be a change in demand and behaviors in the office market.
| Hordics | |
|---|---|
| Sweden | ♂ |
| Norway | ♂ |
| Finland | ♂ |
| Denmark | ♂ |
| Europe | |
| Poland | ♂ |
| Czech Republic | ♂ |
| Hungary | ♂ |
| Romania | ♂ |
| USA |
Hylle Terrass, Malmö, Sweden
Skanska Three month report, January-March 2021 5
Performance analysis
Group
Revenue and operating income, rolling 12 months
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Revenue | 34,390 | 41,166 | -16 |
| Operating income 1,2 | 2,327 | 2,901 | -20 |
| Net financial items | -48 | -48 | 0 |
| Income after financial items | 2,278 | 2,853 | -20 |
| Taxes | -386 | -469 | -18 |
| Profit for the period | 1,892 | 2,383 | -21 |
| Earnings for the period per share, SEK 3 | 4.59 | 5.78 | -21 |
| Earnings for the period per share according to IFRSs, SEK 3 | 2.82 | 2.91 | -3 |
1 Central, SEK -104 M (-121).
2 Eliminations, SEK -27 M (-73).
3 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Changes and currency rate effects
| Jan-Mar 2021 / Jan-Mar 2020 | |||
|---|---|---|---|
| Change in SEK | Change in local currency | Currency effect | |
| Revenue | -16% | -10% | -6% |
| Operating income | -20% | -17% | -3% |
Revenue per segment, January-March 2021
Operating income per segment, January-March 2021
Operating income per segment, 2021
Revenue decreased 16 percent and amounted to SEK 34.4 billion (41.2); adjusted for currency effects revenue decreased 10 percent. Operating income decreased 20 percent and amounted to SEK 2,327 M (2,901); adjusted for currency effects operating income decreased 17 percent. In the comparable period, operating income was positively impacted by the divestment of the Solna United project within Commercial Property Development.
Central stream totaled SEK -104 M (-121). SEK 37 M (-5) relate to the PPP-portfolio.
The elimination of gains in Intra-Group projects amounted to SEK -27 M (-73).
Net financial items amounted to SEK -48 M (-48).
Taxes for the period amounted to SEK -386 M (-469), corresponding to an effective tax rate of 17 percent (16).
Skanska Three month report, January–March 2021
Cash flow
Group
Operating cash flow from operations
Operating cash flow
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Cash flow from business operations | 845 | 746 | 13 |
| Change in working capital | 2,399^{1} | 279 | 761 |
| Net divestments(+)/investments(-) | 481 | 1,478 | -67 |
| Cash flow adjustment | 342 | 33 | 936 |
| Cash flow from business operations before taxes paid | 4,068 | 2,537 | 60 |
| Taxes paid in business operations | -538 | -579 | -7 |
| Cash flow from financing operations | -266 | -326 | -18 |
| Operating cash flow from operations | 3,264 | 1,631 | 100 |
| Dividend etc. | -45 | 0 | - |
| Cash flow before change in interest-bearing receivables and liabilities | 3,219 | 1,631 | 97 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities | -6,510^{2} | 1,645 | - |
| Cash flow for the period | -3,290 | 3,276 | - |
1 Include SEK 3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
2 Include SEK -3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
Operating cash flow from operations amounted to SEK 3,264 M (1,631), where change in Central stream working capital, impacted by the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter, being the main reason for the change in cash flow.
Taxes paid in business operations amounted to SEK -538 M (-579). Commercial Property Development assets sold but not transferred will have a positive effect on cash flow of SEK 5.3 billion, of which SEK 3.7 billion will be received during 2021. The remainder will affect cash flow during 2022.
Free working capital in Construction
Free working capital in Construction amounted to SEK 25.4 billion (26.7). The average free working capital in relation to Construction revenue in the past 12 months was 19.1 percent, partly driven by lower volumes. Free working capital in Construction remained at a good level due to favorable cash flow profiles in several projects and continued focus on cash generation in the Construction stream. Cash flow due to changes in working capital in Construction amounted to SEK -1,236 M (-693).
Moynihan train hall, New York City, USA
Skanska Three month report, January-March 2021
7
Financial position
Adjusted interest-bearing net receivables(+)/net debt(-)
Balance sheet - Summary
| SEK bn | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Total assets | 129.3 | 131.5 | 125.6 |
| Total equity | 38.5 | 34.8 | 38.7 |
| Interest-bearing net receivables (+)/net debt (-) | 8.8 | -3.2 | 7.3 |
| Adjusted interest-bearing net receivables(+)/net debt(-) | 15.9 | 5.3 | 16.0 |
| Capital employed, closing balance | 60.6 | 58.8 | 61.1 |
| Equity/assets ratio, % | 29.8 | 26.5 | 30.8 |
Change in net interest-bearing receivables and liabilities
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Opening balance interest-bearing net receivables(+)/net debt(-) | 7,280 | -4,917 | -4,917 |
| Cash flow for the period | -3,290 | 3,276 | 11,672 |
| Less change in interest-bearing receivables and liabilities | 6,510^{1} | -1,645 | 1,335 |
| Cash flow before change in interest-bearing receivables and liabilities | 3,219 | 1,631 | 13,007 |
| Translation differences, net receivables/net debt | 753 | -133 | -1,067 |
| Remeasurements of pension liabilities | 1,370 | -10 | -860 |
| Other changes, interest-bearing net receivables/ net debt | -3,829^{2} | 187 | 1,118 |
| Change in interest-bearing net receivables/ net debt | 1,513 | 1,675 | 12,197 |
| Closing balance interest-bearing net receivables(+)/net debt(-) | 8,793 | -3,243 | 7,280 |
| Restricted cash | -4,948 | -5,709 | -4,814 |
| Pension liability, net | 4,630 | 5,270 | 6,263 |
| Lease liabilities | 7,472 | 8,976 | 7,233 |
| Closing balance adjusted interest-bearing net receivables(+)/net debt(-) | 15,947 | 5,294 | 15,962 |
1 Include SEK 3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
2 Include SEK -3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
Adjusted interest-bearing net receivables (+)/net debt (-) amounted to SEK 15.9 billion (December 31, 2020: 16.0). Interest-bearing net receivables amounted to SEK 8.8 billion (December 31, 2020: 7.3) and include SEK 7.5 billion in interest-bearing lease liabilities according to IFRS 16.
At the end of the quarter, cash, cash equivalents and committed unutilized credit facilities amounted to SEK 23.0 billion (December 31, 2020: 27.0), of which SEK 18.9 billion (December 31, 2020: 22.8) is available within one week. The Group central loan portfolio amounted to SEK 3.8 billion (December 31, 2020: 3.7) consisting of SEK 0.5 billion in Medium-Term Notes (MTN) with an average maturity of 2.1 years and SEK 3.3 billion in bilateral loans with an average maturity of 3.1 years. At March 31, the Group's unutilized credit facilities totaled SEK 6.6 billion. The central loan portfolio, including committed unutilized credit facilities, had an average maturity of 3.1 years (December 31, 2020: 3.1).
At the end of the quarter, capital employed amounted to SEK 60.6 billion (December 31, 2020: 61.1).
Equity
Changes in equity
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Opening balance | 38,717 | 33,021 | 33,021 |
| Dividend to shareholders | -3,917 | 0 | -1,340 |
| Other changes in equity not included in total comprehensive income for the year | 35 | 70 | 197 |
| Profit for the period | 1,160 | 1,199 | 9,897 |
| Other comprehensive income | |||
| Translation differences | 1,236 | 734 | -2,146 |
| Effects of remeasurements of pensions | 1,285 | -69 | -792 |
| Effects of cash flow hedges | -2 | -165 | -120 |
| Closing balance | 38,514 | 34,790 | 38,717 |
Adjusted equity, less standard tax of 10 percent
The Group's equity amounted to SEK 38.5 billion (34.8), resulting in an equity/assets ratio of 29.8 percent (26.5) and a net debt/equity ratio of -0.2 (0.1).
Translation differences amounted to SEK 1,236 M (734) as a result of a weaker Swedish krona.
The effects of remeasurements of pensions amounted to SEK 1,285 M (-69). This is mainly explained by higher discount rate in Sweden, Norway and the UK.
Unrealized surplus values in Project Development including the PPP-portfolio amounted to SEK 11.0 billion of which SEK 1.2 billion was realized according to segment reporting. Corresponding amounts less standard tax were SEK 9.9 billion and SEK 1.1 billion.
Skanska Three month report, January–March 2021
Investments and divestments
Investments and divestments
The Group's investments amounted to SEK -4,736 M (-5,624), while divestments amounted to SEK 5,217 M (7,102), resulting in net divestments of SEK 481 M (1,478).
In Construction, investments totaled SEK -311 M (-295). These investments mainly relate to property, plant and equipment for the Group's own operations. Net investments in Construction amounted to SEK -247 M (-272). Depreciation of property, plant and equipment and depreciation of property, plant and equipment right-of-use assets amounted to SEK -586 M (-671).
In Residential Development, investments totaled SEK -2,704 M (-2,709), of which SEK -1,215 M (-383) relates to land acquisitions, corresponding to 983 building rights. Divestments amounted to SEK 2,144 M (1,944). Net investments in Residential Development amounted to SEK -560 M (-765).
In Commercial Property Development, investments totaled SEK -1,703 M (-2,581), of which SEK -352 M (-355) relates to investments in new land, while divestments amounted to SEK 3,001 M (5,120). Net divestments in Commercial Property Development amounted to SEK 1,298 M (2,539).
Investments, divestments and net divestments(+)/investments(-)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Investments | |||
| Construction | -311 | -295 | 5 |
| Residential Development | -2,704 | -2,709 | -0 |
| Commercial Property Development | -1,703 | -2,581 | -34 |
| Other | -18 | -39 | -54 |
| Total | -4,736 | -5,624 | -16 |
| Divestments | |||
| Construction | 64 | 23 | 177 |
| Residential Development | 2,144 | 1,944 | 10 |
| Commercial Property Development | 3,001 | 5,120 | -41 |
| Other | 9 | 16 | -44 |
| Total | 5,217 | 7,102 | -27 |
| Net divestments(+)/investments(-) | |||
| Construction | -247 | -272 | -9 |
| Residential Development | -560 | -765 | -27 |
| Commercial Property Development | 1,298 | 2,539 | -49 |
| Other | -9 | -23 | -61 |
| Total | 481 | 1,478 | -67 |
Investment, Port 7, Prague, Czech Republic
Capital employed in Project Development
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Residential Development | 15,350 | 13,301 | 13,608 |
| Commercial Property Development | 31,100 | 34,905 | 30,906 |
| Total in Project Development | 46,450 | 48,207 | 44,515 |
Divestment, CPH Highline, Copenhagen, Denmark
Skanska Three month report, January–March 2021
9
Performance analysis, business streams
Construction – Order situation
Order backlog, revenue and order bookings
Order bookings and order backlog in Construction
| SEK bn | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Order bookings | 34.9 | 41.3 | 149.8 |
| Order backlog 1 | 193.4 | 199.0 | 178.9 |
1 Refers to the end of each period.
Order bookings amounted to SEK 34.9 billion (41.3); adjusted for currency effects order bookings decreased 9 percent. On a rolling 12-month basis the book-to-build ratio was 107 percent (December 31, 2020: 107). For more information, see page 26.
At the end of the quarter, the order backlog amounted to SEK 193.4 billion compared to SEK 178.9 billion at the end of the previous quarter. The order backlog corresponds to 17 months of production (December 31, 2020: 16).
Changes and currency rate effects
| Change in SEK | Change in local currency | Currency effect | |
|---|---|---|---|
| Jan-Mar 2021 / Jan-Mar 2020 | |||
| Order bookings | -15% | -9% | -6% |
| Mar 31, 2021 / Dec 31, 2020 | |||
| Order backlog | 8% | 3% | 5% |
Major orders in the quarter
| Geography | Contract | Amount SEK M | Client |
|---|---|---|---|
| Europe | Highway | 5,800 | Highways England |
| Nordic | Hospital | 2,800 | Kanta-Häme Hospital District |
| USA | Office improvements | 1,500 | Existing client |
| Europe | Office building | 1,500 | Quadrant and funds managed by Oaktree Capital Management, L.P. |
| Europe | Residential and commercial office buildings | 950 | Royal London Asset Management Ltd |
A428 road, East of England region, UK
Skanska Three month report, January–March 2021
Construction
Revenue and operating margin, rolling 12 months
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Revenue | 29,354 | 35,939 | -18 |
| Gross income | 2,126 | 2,211 | -4 |
| Selling and administrative expenses | -1,406 | -1,620 | -13 |
| Income from joint ventures and associated companies | 2 | -1 | |
| Operating income | 722 | 589 | 23 |
| Gross margin, % | 7.2 | 6.2 | |
| Selling and administrative expenses, % | -4.8 | -4.5 | |
| Operating margin, % | 2.5 | 1.6 | |
| Employees | 29,644 | 31,796 |
Changes and currency rate effects
| Jan-Mar 2021 / Jan-Mar 2020 | |||
|---|---|---|---|
| Change in SEK | Change in local currency | Currency effect | |
| Revenue | -18% | -12% | -6% |
| Operating income | 23% | 33% | -10% |
Revenue in the Construction business stream decreased 18 percent and amounted to SEK 29.4 billion (35.9); adjusted for currency effects revenue decreased by 12 percent. This is mainly related to Covid-19 disruptions, especially in Europe and USA, and decisions by clients to postpone ramp-up of new projects. But it is also a remaining impact of the strategic actions to focus the operations and be more selective in bidding in order to improve profitability. The operating margin was 2.5 percent (1.6). Operating income increased 23 percent and amounted to SEK 722 M (589); adjusted for currency effects operating income increased by 33 percent.
LaGuardia Airport, New York City, USA
Skanska Three month report, January-March 2021
11
Residential Development
Revenue and operating margin, rolling 12 months
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Revenue | 4,509 | 3,400 | 33 |
| Gross income | 837 | 554 | 51 |
| Selling and administrative expenses | -168 | -160 | 5 |
| Operating income | 669 | 394 | 70 |
| Gross margin, % | 18.6 | 16.3 | |
| Selling and administrative expenses, % | -3.7 | -4.7 | |
| Operating margin, % | 14.8 | 11.6 | |
| Return on capital employed, % 1 | 14.3 | 11.5 |
1 Rolling 12 months. For definition see page 16.
Revenue in the Residential Development business stream amounted to SEK 4,509 M (3,400). The number of homes sold totaled 1,362 (911) and construction started on 1,061 homes (971). Operating income amounted to SEK 669 M (394). The operating margin was 14.8 percent (11.6). The quarter include the divestment of an ongoing multifamily housing project of 220 rental apartments in Sweden for SEK 720 M, impacting sold homes.
Return on capital employed was 14.3 percent (11.5).
Homes sold and started, rolling 12 months
Homes sold and started
| Jan-Mar 2021 | Jan-Mar 2020 | |
|---|---|---|
| Homes sold | 1,362 | 911 |
| Homes started | 1,061 | 971 |
Homes under construction and unsold
Homes under construction and unsold
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
|---|---|---|---|
| Homes under construction | 7,104 | 6,948 | 6,948 |
| of which sold, % | 77 | 68 | 72 |
| Completed unsold, number of homes | 186 | 139 | 154 |
At the end of the quarter, 7,104 homes (December 31, 2020: 6,948) were under construction. Of these, 77 percent (December 31, 2020: 72) were sold. The number of completed unsold homes amounted to 186 (December 31, 2020: 154). The number of completed homes amounted to 905 (1,153).
Breakdown of carrying amounts
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Completed projects | 629 | 1,124 | 648 |
| Ongoing projects | 8,860 | 8,509 | 7,843 |
| Undeveloped land and development properties | 8,759 | 7,991 | 8,551 |
| Total | 18,247 | 17,624 | 17,041 |
A breakdown of the carrying amounts for Residential Development is presented in the table above. Ongoing projects amounted to SEK 8.9 billion (December 31, 2020: 7.8) and undeveloped land and development properties amounted to SEK 8.8 billion (December 31, 2020: 8.6). The estimated unrealized surplus value in unsold homes in construction and undeveloped land and development properties amounted to SEK 2.6 billion. The undeveloped land and development properties correspond to Skanska-owned building rights for 26,100 homes and 1,400 building rights held by joint ventures. In addition, subject to certain conditions, the business stream has the right to purchase 11,400 building rights.
Skanska Three month report, January-March 2021
Commercial Property Development
Revenue and operating income from property divestments
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Change, % |
|---|---|---|---|
| Revenue | 2,605 | 4,759 | -45 |
| of which from divestment of properties | 2,413 | 4,546 | -47 |
| Gross income | 1,232 | 2,330 | -47 |
| Selling and administrative expenses | -168 | -215 | -22 |
| Income from joint ventures and associated companies | 3 | -3 | - |
| Operating income | 1,066 | 2,112 | -50 |
| of which from divestment of properties | 1,223 | 2,285 | -47 |
| Return on capital employed, %1 | 9.0 | 16.0 |
1 Rolling 12 months. For definition see page 16.
In the Commercial Property Development business stream, divestments worth SEK 2,413 M (4,546) were made in the first quarter of 2021. Operating income amounted to SEK 1,066 M (2,112) and included gains from property divestments totaling SEK 1,223 M (2,285). The comparable period was positively impacted by the divestment of the Solna United project.
Return on capital employed was 9.0 percent (16.0).
Breakdown of investment value and market values
| SEK M | Investment value, end of period | Investment value upon completion | Market value 3,2 | Occupancy rate, % | Degree of completion, % |
|---|---|---|---|---|---|
| Ongoing projects 3 | 8,363 | 17,746 | 22,434 | 44 | 48 |
| Completed projects 4,5 | 9,001 | 9,001 | 11,188 | 63 | 100 |
| Undeveloped land and development properties | 11,933 | 11,933 | 12,617 | ||
| Total | 29,297 | 38,680 | 46,239 | ||
| of which carrying amount 6 | 28,931 | 38,314 | |||
| of which completed projects sold according to segment reporting | 767 | 767 | 995 | ||
| of which ongoing projects sold according to segment reporting | 2,693 | 3,316 | 4,309 |
1 Market value according to appraisal on December 31, 2020.
2 Ongoing projects - estimated market value at completion fully leased.
3 Including tenant improvement and leasing commissions in CDUS amounted to SEK 0 M.
4 Including tenant improvement and leasing commissions in CDUS amounted to SEK 688 M.
5 Skanska's share of total production cost in JVs is SEK 479 M end of period and upon completion.
6 Includes Skanska's total equity investment in JV of SEK 113 M.
Unrealized and realized gains, segment reporting
Leasing and degree of completion
At the end of the quarter, Commercial Property Development had 33 ongoing projects. During the quarter, seven new project was started, and two were completed. The 33 ongoing projects represent leasable space of about 604,000 sq m with an occupancy rate of 44 percent, measured in rent. The projects' degree of completion was 48 percent. Their investment value upon completion is expected to total SEK 17.7 billion, with an estimated market value of SEK 22.4 billion.
Of the ongoing projects, 11 have been divested according to segment reporting. These projects represent an investment value upon completion of SEK 3.3 billion, with a sales value of SEK 4.3 billion. By the end of the quarter the total number of completed projects amounted to 19. The market value of these projects, excluding property divested according to segment reporting, was SEK 10.2 billion. The occupancy rate, measured in rent, totaled 63 percent (December 31, 2020: 62).
At the end of the quarter, unrealized gains, excluding properties divested according to segment reporting totaled SEK 6.3 billion. These gains related to SEK 3.7 billion in ongoing projects, SEK 2.0 billion in completed projects and SEK 0.6 billion in undeveloped land and development properties.
Accumulated eliminations of Intra-Group project gains amounted to SEK 430 M. These eliminations are released at the Group level as each project is divested. During the first quarter new leases were signed for 32,000 sq m (48,000).
Skanska Three month report, January-March 2021
13
Personnel
During the period, the average number of employees in the Group was 31,196 (33,330). At the end of the quarter, the number of employees totaled 31,420 people (December 31, 2020: 31,517).
Transactions with related parties
During the quarter, Skanska Fastigheter Göteborg AB acquired a block of development properties in Gothenburg, Sweden for about SEK 220 M. The seller is Fastighets AB LE Lundberg. The Parent Company holds, indirectly, 100 percent of the shares in Skanska Fastigheter Göteborg AB. The Lundberg Group is controlled by Fredrik Lundberg, as defined in IAS 24, through his share ownership and percentage of voting power. The transaction was carried out on market terms and conditions.
Material risks and uncertainties
For information about risks and a description of key estimates and judgments, see the Annual and Sustainability Report 2020, pages 51-56, Note 2 and 6, as well as the section above on market outlook. Aside from the uncertainty from Covid-19, no significant changes occurred that affected these reported risks. Covid-19 and its effects on real economies will create uncertainty and risks for some time.
Other matters
Annual General Meeting
The Annual General Meeting (AGM) of Skanska AB (publ) was held on March 30, 2021. Due to the risk of the spread of Covid-19 and the authorities' regulations and advice the Meeting was carried out solely through advance voting (so-called postal voting) pursuant to temporary legislation. In accordance with the Board of Directors' proposal, the Meeting resolved to pay a dividend to the shareholders of SEK 9.50 per share, of which SEK 6.50 per share as ordinary dividend and SEK 3.00 per share as extra dividend. The record date for receiving dividend was set to Thursday April 1, 2021 and the dividend was distributed by Euroclear Sweden AB on Thursday April 8, 2021.
The Meeting elected members of the Board of Directors in accordance with the proposal of the Nomination Committee. Hans Biörck, Pär Boman, Jan Gurander, Fredrik Lundberg, Catherine Marcus, Jayne McGivern and Åsa Söderström Winberg were re-elected as members of the Board of Directors. Hans Biörck was re-elected as Chairman of the Board of Directors. It was noted that the trade unions have appointed Ola Fält, Richard Hörstedt and Yvonne Stenman as employee representatives in the Board of Directors with Hans Reinholdsson and Anders Rättgård as deputies.
Repurchase of shares
At the statutory Board meeting on March 30, 2021, the Board resolved to exercise the authorisation given by the Annual General Meeting on March 30, 2021 to acquire own Series B shares in Skanska on the following terms and conditions to secure delivery of Series B shares to participants in the Skanska employee ownership program resolved by the Annual General Meeting on March 28, 2019 (Seop 5). Acquisitions may be made on one or several occasions, however at the latest until the Annual General Meeting 2022, of no more than 1,200,000 Series B shares in Skanska on Nasdaq Stockholm at a price within the from time to time applicable range of prices (spread) on Nasdaq Stockholm, meaning the interval between the highest purchase price and the lowest selling price. Acquired own Series B shares in Skanska may be transferred to participants in Seop 5 in accordance with the conditions stipulated in the decision by the Annual General Meeting on March 28, 2019. On March 30, 2021 Skanska held 7,559,916 Series B shares in its own custody.
Events after the end of the report period
There were no events after the end of the report period.
Financial reports for 2021
Skanska's interim reports and year-end report are available for download on Skanska's website, www.group.skanska.com/investors.
The Group's interim reports for 2021 will be published on the following dates:
July 23, 2021
Six Month Report
October 28, 2021
Nine Month Report
February 3, 2022
Year-end Report
Stockholm April 29, 2021
Anders Danielsson
President and Chief Executive Officer
This interim report has not been subject to a review by the company's auditors.
Skanska Three month report, January-March 2021
Accounting Principles
For the Group, this interim report has been prepared in compliance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Securities Market Act. For the Parent Company, the interim report has been prepared in compliance with the Annual Accounts Act, the Securities Market Act, and Swedish Financial Reporting Board’s Recommendation RFR 2.
Relation between consolidated operating cash flow statement and consolidated cash flow statement
The difference between the operating cash flow statement and the summary cash flow statement in compliance with IAS 7 Cash flow Statements, is presented in the Annual and Sustainability Report 2020, Note 35.
Segment and IFRS reporting
Skanska’s business streams Construction, Residential Development and Commercial Property Development represent the group’s operating segments. Tables in this report that refer to segment reporting are shown with a shaded background. In certain cases, the segment reporting differs from the consolidated results presented in accordance with International Financial Reporting Standards, IFRS.
Construction includes both building construction and civil construction. Revenues and earnings are reported over time for both segment and IFRS reporting.
Residential Development develops residential projects for immediate sale. Homes are adapted to selected customer categories. The units are responsible for planning and selling the projects. The related construction assignments are performed by Skanska’s construction units in the Construction segment in each market. In the segment reporting Residential Development recognizes revenue and earnings when contracts are signed for the sale of homes. In the IFRS reporting revenues are instead recognized when the buyer takes possession of the homes.
Commercial Property Development initiates, develops, leases and divests commercial property projects. In most markets the construction assignments are performed by Skanska’s Construction segment. In the segment reporting Commercial Property Development recognizes revenue and earnings when contracts are signed for the sale of the properties. In the IFRS reporting revenues are instead recognized when the buyer takes possession of the property.
Joint ventures are reported under the proportional method in the segment reporting of Residential Development, whereas all other streams/operating segments apply the equity method.
Intra-Group pricing between operating segments occurs on market terms.
The Parent Company in a Swedish Group prepares its accounts in compliance with the Swedish Financial Reporting Board’s Recommendation RFR 2 Accounting for Legal Entities (“RFR 2”). According to RFR 2, the annual accounts of the legal entity must apply IFRS as far as this is possible within the framework of the Annual Accounts Act and considering the connection between accounting and taxation.
Skanska Three month report, January–March 2021
15
Definitions
For further definitions, see the Annual and Sustainability Report 2020, Note 43.
| Non-IFRS financial measures | Definition | Reason for use |
|---|---|---|
| The following measures are used as they are viewed as the best and most accurate ways to measure Skanska's operations; reflecting its business model and strategy. Thus assisting investors and management in analyzing trends and performance in Skanska. | ||
| Revenue Segment | Revenue segment is the same as revenue IFRS in all streams except for the Residential Development stream and the Commercial Property Development stream, where revenue is recognised for when signing binding agreement for sale of homes and properties. As segment reporting of joint ventures in Residential Development applies the proportional method, revenue segment is affected by this. | Measure revenue generated in current market environment. |
| Gross income | Revenue minus cost of sales. | Measure profit generated from projects. |
| Gross margin | Gross income as a percentage of revenue. | Measure profitability in projects. |
| Selling and admin expenses % | Selling and administrative expenses as a percentage of revenue. | Measure cost efficiency in selling and administrative expenses. |
| Operating income | Revenue minus cost of sales, selling and administrative expenses and income from joint ventures and associated companies. | Measure profit generated from operations. |
| Operating income segment | Revenue minus cost of sales, selling and administrative expenses and income from joint ventures and associated companies, according to segment reporting, and where Residential Development applies the proportional method for reporting of joint ventures. | Measure profit generated from operations in current market environment. |
| Operating income rolling 12 months | Revenue minus cost of sales, selling and administrative expenses and income from joint ventures and associated companies, rolling 12 months. | Measure profit generated from operations. |
| Operating margin | Operating income as a percentage of revenue. | Measure profitability in operations. |
| Net financial items | The net of interest income, financial net pension cost, interest expense, capitalized expense, change in fair value and other net financial items. | Measure total net for financial activities. |
| Income after financial items | Operating income minus net financial items. | Measure profit generated before taxes. |
| Earnings per share, segment | Profit for the period, segment, attributable to equity holders divided by the average number of shares outstanding. | Measure earnings per share, segment. |
| Book-to-build, rolling 12 months | Order bookings divided by construction revenue, rolling 12 months. | Measures to which extent new orders are replacing work put in place. |
| Unrealized gains, Commercial Property Development (CD) | Market value minus investment value upon completion for ongoing projects, completed projects and land. Excluding projects sold according to segment reporting. | Measure potential realization of future gains in Commercial Property Development. |
| Capital employed, Group | Total assets minus non-interest-bearing liabilities. | Measure capital usage and efficiency. |
| Capital employed, Stream | Total assets less tax assets, deposits in Skanska's treasury unit and pension receivable minus non-interest-bearing liabilities excluding tax liabilities. Capitalized interest expense is removed from total assets for the Residential Development and Commercial Property Development segments. | Measure capital usage and efficiency in a Stream. |
| Capital employed Residential Development (RD) SEK M | Total assets | |
| - tax assets | ||
| - deposits in internal bank | ||
| - pension receivable | ||
| - non-interest-bearing liabilities (excluding tax liabilities) | ||
| - capitalized interest expense | 21,690 | |
| -290 | ||
| -194 | ||
| -28 | ||
| -5,752 | ||
| -76 | ||
| 15,350 | ||
| Capital employed Commercial Property Development (CD) SEK M | Total assets | |
| - tax assets | ||
| - deposits in internal bank | ||
| - pension receivable | ||
| - non-interest-bearing liabilities (excluding tax liabilities) | ||
| - capitalized interest expense | 35,257 | |
| -423 | ||
| -128 | ||
| 0 | ||
| -3,364 | ||
| -242 | ||
| 31,100 |
Skanska Three month report, January–March 2021
Non-IFRS financial measures
| Capital employed average | Calculated on the basis of five measuring points; see below. |
|---|---|
| ROCE in RD segment, rolling 12 months SEK M | Operating income |
| + capitalized interest expense | 84 |
| +/- financial income and other financial items | 0 |
| - interest income from internal bank | 0 |
| Adjusted profit | 1,903 |
| Capital employed average* | 13,305 |
| ROCE RD | 14.3% |
| * Capital employed average | |
| Q1 2021 | 15,350 |
| Q4 2020 | 13,608 |
| Q3 2020 | 12,810 |
| Q2 2020 | 12,478 |
| Q1 2020 | 13,301 |
| ROCE in CD segment, rolling 12 months SEK M | Operating income |
| + capitalized interest expense | 114 |
| +/- financial income and other financial items | 2 |
| - interest income from internal bank | 0 |
| Adjusted profit | 2,967 |
| Capital employed average* | 32,936 |
| ROCE CD | 9.0% |
| * Capital employed average | |
| Q1 2021 | 31,100 |
| Q4 2020 | 30,906 |
| Q3 2020 | 33,951 |
| Q2 2020 | 33,885 |
| Q1 2020 | 34,905 |
| ROCE in Project Development, segment, rolling 12 months SEK M | Is calculated as the summarized adjusted profit for RD and CD divided by the summarized capital employed average for RD and CD. |
| The total ROCE from RD and CD. | |
| Adjusted | |
| profit | |
| RD | 1,903 |
| CD | 2,967 |
| 4,871 |
Measure the performance (profitability and capital efficiency) in RD.
Skanska Three month report, January–March 2021
17
| Non-IFRS financial measures | Definition | Reason for use | ||
|---|---|---|---|---|
| Return on equity segment, rolling 12 months | ||||
| SEK M | Profit attributable to equity holders as a percentage of average equity attributable to equity holders. | |||
| 8,766 / 36,700 = 23.9% | Measure profitability on invested equity. | |||
| Equity average attributable to equity holders | ||||
| SEK M | Calculated on the basis of five measuring points. | |||
| Q1 2021 38,416 x 0.5 19,208 | ||||
| Q4 2020 38,620 38,620 | ||||
| Q3 2020 35,589 35,589 | ||||
| Q2 2020 36,036 36,036 | ||||
| Q1 2020 34,692 x 0.5 17,346 | ||||
| 146,799 / 4 36,700 | ||||
| Operating cash flow from operations | Cash flow from business operations including taxes paid and cash flow from financing operations. | Measure total cash flow generated from operations. | ||
| Net divestments/investment | Total investments minus total divestments. | Measure the balance between investments and divestments. | ||
| Free working capital | Non-interest-bearing receivables less non-interest-bearing liabilities excluding taxes. | Measure the funding stemming from the negative working capital. | ||
| Average free working capital in Construction | ||||
| SEK M | Calculated on the basis of five measuring points. | Measure the funding stemming from the negative working capital generated in Construction. | ||
| Q1 2021 -25,388 x 0.5 -12,694 | ||||
| Q4 2020 -25,748 -25,748 | ||||
| Q3 2020 -25,401 -25,401 | ||||
| Q2 2020 -25,245 -25,245 | ||||
| Q1 2020 -26,740 x 0.5 -13,370 | ||||
| -102,458 / 4 -25,614 | ||||
| Interest-bearing net receivables/net debt | Interest-bearing assets minus interest-bearing liabilities. | Measure financial position. | ||
| Adjusted interest-bearing net receivables/net debt | Interest-bearing net receivables/net debt excluding restricted cash, lease liabilities and interest-bearing net pension liabilities. | Measure financial position and investment capacity. The latter is derived by comparing adjusted interest-bearing net receivables/net debt to limits set by the Board of Directors. | ||
| Equity/assets ratio | Equity including non-controlling interest as a percentage of total assets. | Measure financial position. | ||
| Net debt/equity ratio | Interest-bearing net debt divided by equity including non-controlling interest. | Measure leverage of financial position. | ||
| Adjusted equity attributable to equity holders | ||||
| SEK bn | Equity attributable to equity holders 38.4 | Measure financial position adjusted for surplus values in Project Development net of taxes. The standard corporate tax represents an approximation of the average corporate income tax within the Group. | ||
| Unrealized surplus value in RD 2.6 | ||||
| Unrealized CD gains 7.6 | ||||
| Effect in unrealized equity in PPP-portfolio 0.8 | ||||
| Less standard corporate tax, 10% -1.1 | ||||
| Adjusted equity 48.3 |
Skanska Three month report, January–March 2021
Reconciliation between segment reporting and IFRSs
| External revenue | Intra-Group revenue | Total revenue | Operating income | |||||
|---|---|---|---|---|---|---|---|---|
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 |
| Construction | 27,180 1 | 33,047 1 | 2,174 | 2,892 | 29,354 | 35,939 | 722 | 589 |
| Residential Development | 4,509 | 3,400 | 0 | 0 | 4,509 | 3,400 | 669 | 394 |
| Commercial Property Development | 2,602 | 4,686 | 3 | 73 | 2,605 | 4,759 | 1,066 | 2,112 |
| Total operating segments | 34,291 | 41,133 | 2,177 | 2,965 | 36,468 | 44,098 | 2,457 | 3,095 |
| Central | 100 | 34 | 3 | 94 | 103 | 128 | -104 | -121 |
| Eliminations | -0 | -0 | -2,180 | -3,059 | -2,180 | -3,059 | -27 | -73 |
| Total Group | 34,390 | 41,166 | 0 | 0 | 34,390 | 41,166 | 2,327 | 2,901 |
| Reconciliation to IFRSs 2 | -1,746 | -826 | 0 | 0 | -1,746 | -826 | -883 | -1,419 |
| Total IFRSs | 32,644 | 40,340 | 0 | 0 | 32,644 | 40,340 | 1,444 | 1,482 |
| 1 Of which external revenue from joint ventures in PPP-portfolio | 717 | 1,740 | ||||||
| 2 Of which effect from joint ventures in Residential Development proportionally | -159 | -192 | -78 | -58 | ||||
| Of which effect of different revenue recognitions | -1,587 | -634 | -804 | -1,361 |
Revenue by geographical area (IFRS)
| Construction | Residential Development | Commercial Property Development | Central and Eliminations | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2021 | Jan-Mar 2020 |
| Nordics | 12,459 | 13,145 | 1,730 | 1,854 | 1,622 | 2,341 | -1,517 | -1,834 | 14,294 | 15,506 |
| of which Sweden | 7,281 | 7,644 | 596 | 1,164 | 649 | 782 | -1,052 | -1,246 | 7,474 | 8,344 |
| Europe | 4,944 | 6,245 | 444 | 72 | 1,489 | 1,296 | -427 | -799 | 6,450 | 6,814 |
| USA | 11,951 | 16,549 | 0 | 0 | 81 | 1,696 | -134 | -225 | 11,899 | 18,020 |
| Total operating segments | 29,354 | 35,939 | 2,174 | 1,926 | 3,193 | 5,333 | -2,078 | -2,858 | 32,644 | 40,340 |
| SEK M | Segment | IFRS | Segment | IFRS | ||||||
| --- | --- | --- | --- | --- | ||||||
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2020 | Jan-Mar 2020 | |||||||
| Revenue | ||||||||||
| Construction | 29,354 | 29,354 | 35,939 | 35,939 | ||||||
| Residential Development | 4,509 | 2,174 | 3,400 | 1,926 | ||||||
| Commercial Property Development | 2,605 | 3,193 | 4,759 | 5,333 | ||||||
| Central and eliminations | -2,078 | -2,078 | -2,931 | -2,858 | ||||||
| Skanska Group | 34,390 | 32,644 | 41,166 | 40,340 | ||||||
| Operating income | ||||||||||
| Construction | 722 | 722 | 589 | 589 | ||||||
| Residential Development | 669 | 302 | 394 | 87 | ||||||
| Commercial Property Development 1 | 1,066 | 545 | 2,112 | 1,016 | ||||||
| Central | -104 | -104 | -121 | -121 | ||||||
| of which PPP-portfolio | 37 | 37 | -5 | -5 | ||||||
| Eliminations 1 | -27 | -21 | -73 | -90 | ||||||
| Operating income | 2,327 | 1,444 | 2,901 | 1,482 | ||||||
| Net financial items | -48 | -47 | -48 | -47 | ||||||
| Income after financial items | 2,278 | 1,397 | 2,853 | 1,435 | ||||||
| Taxes | -386 | -237 | -469 | -236 | ||||||
| Profit for the period | 1,892 | 1,160 | 2,383 | 1,199 | ||||||
| Earnings for the period per share, SEK 2 | 4.59 | 5.78 | ||||||||
| Earnings for the period per share according to IFRSs, SEK 2 | 2.82 | 2.91 | ||||||||
| 1 Of which gains from divestments of commercial properties reported in: | ||||||||||
| Commercial Property Development | 1,223 | 702 | 2,285 | 1,189 | ||||||
| Eliminations | 34 | 39 | 122 | 95 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Skanska Three month report, January–March 2021 19
The Skanska Group
Summary income statement (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Revenue | 32,644 | 40,340 | 160,344 |
| Cost of sales | -29,425 | -36,781 | -143,457 |
| Gross income | 3,219 | 3,559 | 16,887 |
| Selling and administrative expenses | -1,890 | -2,136 | -8,269 |
| Income from joint ventures and associated companies | 116 | 59 | 4,015 |
| Operating income | 1,444 | 1,482 | 12,633 |
| Financial income | 30 | 88 | 120 |
| Financial expenses | -77 | -135 | -349 |
| Net financial items^{1} | -47 | -47 | -229 |
| Income after financial items | 1,397 | 1,435 | 12,404 |
| Taxes | -237 | -236 | -2,507 |
| Profit for the period | 1,160 | 1,199 | 9,897 |
| 1 Of which | |||
| Interest income | 17 | 64 | 118 |
| Financial net pension costs | -15 | -14 | -61 |
| Interest expenses | -48 | -43 | -194 |
| Interest expenses from lease liabilities | -51 | -69 | -244 |
| Capitalized interest expenses | 50 | 57 | 195 |
| Net interest items | -47 | -5 | -186 |
| Change in fair value | 1 | -1 | -3 |
| Other net financial items | -1 | -41 | -40 |
| Net financial items | -47 | -47 | -229 |
| Profit attributable to: | |||
| Equity holders | 1,161 | 1,196 | 9,875 |
| Non-controlling interests | -1 | 2 | 22 |
| Earnings per share, SEK^{1} | 2.82 | 2.91 | 23.97 |
| Earnings per share after dilution, SEK^{1} | 2.80 | 2.89 | 23.84 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
3 Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
Statement of profit or loss and other comprehensive income (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Profit for the period | 1,160 | 1,199 | 9,897 |
| Other comprehensive income | |||
| Items that will not be reclassified to profit and loss | |||
| Remeasurements of defined benefit plans | 1,629 | -121 | -1,003 |
| Tax related to items that will not be reclassified to profit and loss | -344 | 52 | 211 |
| 1,285 | -69 | -792 | |
| Items that have been or will be reclassified to profit and loss | |||
| Translation differences attributable to equity holders | 1,210 | 650 | -2,120 |
| Translation differences attributable to non-controlling interests | 2 | -1 | -7 |
| Hedging of exchange rate risk in foreign operations | 24 | 85 | -19 |
| Effects of cash flow hedges^{1} | -49 | -97 | 35 |
| Share of other comprehensive income of joint ventures and associated companies^{2} | 37 | -65 | -176 |
| Tax related to items that have been or will be reclassified to profit and loss | 10 | -3 | 21 |
| 1,234 | 569 | -2,266 | |
| Other comprehensive income after tax | 2,519 | 500 | -3,058 |
| Total comprehensive income | 3,679 | 1,699 | 6,839 |
| Total comprehensive income attributable to | |||
| Equity holders | 3,678 | 1,698 | 6,824 |
| Non-controlling interests | 1 | 1 | 15 |
| 1 Of which transferred to income statement | 0 | 0 | -2 |
| 2 Of which transferred to income statement | 50 | 26 | 157 |
Skanska Three month report, January–March 2021
Summary statement of financial position (IFRS)
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 6,963 | 7,656 | 6,816 |
| Property, plant and equipment right-of-use assets | 3,917 | 4,493 | 3,930 |
| Goodwill | 3,922 | 4,030 | 3,713 |
| Intangible assets | 775 | 846 | 771 |
| Investments in joint ventures and associated companies | 1,809 | 3,356 | 1,689 |
| Financial non-current assets^{1,3} | 2,959 | 3,119 | 1,931 |
| Deferred tax assets | 1,712 | 1,670 | 1,803 |
| Total non-current assets | 22,057 | 25,170 | 20,653 |
| Current assets | |||
| Current-asset properties^{2} | 46,376 | 47,917 | 44,948 |
| Current-asset properties right-of-use land | 3,230 | 4,175 | 2,980 |
| Inventories | 1,104 | 1,139 | 1,100 |
| Financial current assets^{3} | 11,607 | 5,676 | 8,492 |
| Tax assets | 932 | 753 | 950 |
| Contract assets | 5,765 | 7,254 | 4,599 |
| Trade and other receivables | 21,779 | 27,255 | 22,401 |
| Cash | 16,453 | 12,161 | 19,508 |
| Total current assets | 107,245 | 106,328 | 104,979 |
| TOTAL ASSETS | 129,302 | 131,499 | 125,631 |
| of which interest-bearing financial non-current assets | 2,915 | 3,072 | 1,884 |
| of which interest-bearing current assets | 27,952 | 17,717 | 27,808 |
| Total interest-bearing assets | 30,867 | 20,789 | 29,692 |
| EQUITY | |||
| Equity attributable to equity holders | 38,416 | 34,692 | 38,620 |
| Non-controlling interests | 98 | 98 | 97 |
| Total equity | 38,514 | 34,790 | 38,717 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Financial non-current liabilities^{3} | 3,327 | 2,615 | 3,247 |
| Lease liabilities | 6,462 | 7,898 | 6,217 |
| Pensions | 6,547 | 6,320 | 7,360 |
| Deferred tax liabilities | 1,227 | 923 | 928 |
| Total non-current liabilities | 17,563 | 17,756 | 17,752 |
| Current liabilities | |||
| Financial current liabilities^{3} | 4,790 | 6,320 | 4,663 |
| Lease liabilities | 1,010 | 1,077 | 1,016 |
| Tax liabilities | 1,757 | 320 | 1,884 |
| Current provisions | 10,534 | 9,754 | 10,326 |
| Contract liabilities | 19,568 | 21,747 | 19,462 |
| Trade and other payables | 35,566 | 39,733 | 31,812 |
| Total current liabilities | 73,225 | 78,953 | 69,162 |
| TOTAL EQUITY AND LIABILITIES | 129,302 | 131,499 | 125,631 |
| of which interest-bearing financial liabilities | 15,526 | 17,712 | 15,052 |
| of which interest-bearing pensions and provisions | 6,547 | 6,320 | 7,360 |
| Total interest-bearing liabilities | 22,074 | 24,032 | 22,412 |
| 1 Of which shares and participations | 43 | 46 | 43 |
| 2 Current-asset properties | |||
| Commercial Property Development | 28,130 | 30,293 | 27,906 |
| Residential Development | 18,247 | 17,624 | 17,041 |
| 3 Items regarding non-interest-bearing unrealized changes in derivatives/financial instruments are included in the following amounts: | |||
| Financial non-current assets | 1 | 1 | 4 |
| Financial current assets | 108 | 119 | 193 |
| Financial non-current liabilities | 5 | 2 | 6 |
| Financial current liabilities | 58 | 196 | 85 |
Contingent liabilities amounted to SEK 60.0 bn on March 31, 2021 (Dec 31, 2020: 57.9) and relates to joint operations in Construction and joint ventures in Project Development. For more information see 2020 Annual and Sustainability Report, Note 20B, 20C and 33. During the period, contingent liabilities increased by SEK 2.1 bn.
Skanska Three month report, January–March 2021 21
Summary statement of changes in equity (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Opening balance | 38,717 | 33,021 | 33,021 |
| of which non-controlling interests | 97 | 97 | 97 |
| Dividend to shareholders | -3,917 | 0 | -1,340 |
| Dividend to non-controlling interests | 0 | 0 | -15 |
| Effects of equity-settled share-based payments | 80 | 70 | 300 |
| Repurchase of shares | -45 | 0 | -88 |
| Total comprehensive income attributable to | |||
| Equity holders | 3,678 | 1,698 | 6,824 |
| Non-controlling interests | 1 | 1 | 15 |
| Closing balance | 38,514 | 34,790 | 38,717 |
| of which non-controlling interests | 98 | 98 | 97 |
Summary consolidated cash flow statement (IAS 7) (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Cash flow from operating activities before change in working capital, according to IAS 7 | 313 | 171 | 2,652 |
| Cash flow from change in working capital, according to IAS 7 | 3,479 | 2,058 | 8,632 |
| Net investments in property, plant and equipment and intangible assets | -255 | -268 | 4129 |
| Tax payments on sold property, plant and equipment and intangible assets | -5 | -4 | -29 |
| Cash flow from business operations including taxes paid according to operating cash flow | 3,531 | 1,957 | 15,384 |
| Less net investments in property, plant and equipment and intangible assets | 255 | 268 | -4,129 |
| Less tax payments on sold property, plant and equipment and intangible assets | 5 | 4 | 29 |
| Cash flow from operating activities, according to IAS 7 | 3,791 | 2,229 | 11,284 |
| Cash flow from net strategic divestments(+)/ investments(-) according to operating cash flow | |||
| Net investments in property, plant and equipment and intangible assets | -255 | -268 | 4,129 |
| Increase and decrease in interest-bearing receivables | -6,811 | 35 | -2,529 |
| Taxes paid on sold property, plant and equipment and intangible assets | -5 | -4 | -29 |
| Cash flow from investing activities, according to IAS 7 | -7,071 | -237 | 1,571 |
| Cash flow from financing operations according to operating cash-flow statement | -266 | -326 | -934 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities | -6,510 | 1,645 | -1,335 |
| Increase and decrease in interest-bearing receivables | 6,811 | -35 | 2,529 |
| Dividend etc. 1 | -45 | 0 | -1,443 |
| Cash flow from financing activities, according to IAS 7 | -10 | 1,284 | -1,183 |
| Cash flow for the period | -3,290 | 3,276 | 11,672 |
1 Of which repurchases of shares SEK 45 M.
Skanska Three month report, January–March 2021
Operating cash flow (IFRS), supplementary information
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Construction | |||
| Cash flow from business operations | 1,324 | 1,218 | 6,258 |
| Change in working capital | -1,236 | -693 | 1,382 |
| Net divestments(+)/investments(-) | -247 | -272 | -1,188 |
| Total Construction | -160 | 252 | 6,451 |
| Residential Development | |||
| Cash flow from business operations | -194 | -231 | -434 |
| Change in working capital | -409 | 516 | -693 |
| Net divestments(+)/investments(-) | -560 | -765 | 1,291 |
| Total Residential Development | -1,163 | -479 | 164 |
| Commercial Property Development | |||
| Cash flow from business operations | -269 | -320 | -1,088 |
| Change in working capital | -59 | 176 | -487 |
| Net divestments(+)/investments(-) | 1,298 | 2,539 | 7,211 |
| Cash flow adjustment | 342 | 33 | -355 |
| Total Commercial Property Development | 1,313 | 2,428 | 5,281 |
| Central and Eliminations | |||
| Cash flow from business operations | -16 | 80 | -631 |
| Change in working capital | 4,103^{1} | 280 | 406 |
| Net divestments(+)/investments(-) | -9 | -23 | 5,194 |
| of which PPP-portfolio | 9 | 16 | 5,296 |
| Total Central and Eliminations | 4,078 | 336 | 4,969 |
| Total cash flow from business operations | 845 | 746 | 4,104 |
| Total change in working capital | 2,399 | 279 | 607 |
| Total net divestments(+)/investments(-) | 481 | 1,478 | 12,508 |
| Total cash flow adjustment | 342 | 33 | -355 |
| Cash flow from business operations before taxes paid | 4,068 | 2,537 | 16,865 |
| Taxes paid in business operations | -538 | -579 | -1,481 |
| Cash flow from business operations including taxes paid | 3,531 | 1,957 | 15,384 |
| Net interest items, other net financial items and amortization of lease liabilities | -380 | -466 | -1,334 |
| Taxes paid in financing operations | 114 | 140 | 400 |
| Cash flow from financing operations | -266 | -326 | -934 |
| Operating cash flow from operations | 3,264 | 1,631 | 14,450 |
| Dividend etc.^{2} | -45 | 0 | -1,443 |
| Cash flow before change in interest-bearing receivables and liabilities | 3,219 | 1,631 | 13,007 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities | -6,510^{1} | 1,645 | -1,335 |
| Cash flow for the period | -3,290 | 3,276 | 11,672 |
| Cash and cash equivalents at the beginning of the period | 19,508 | 8,745 | 8,745 |
| Exchange rate differences in cash and cash equivalents | 235 | 140 | -909 |
| Cash and cash equivalents at the end of the period | 16,453 | 12,161 | 19,508 |
1 Of which repurchases of shares SEK 45 M.
2 Include SEK 3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
3 Include SEK -3.9 bn related to the approval of dividend proposal at the AGM during the first quarter and distributed during the second quarter.
Skanska Three month report, January–March 2021 23
Group net divestments(+)/investments(-) (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| OPERATIONS - INVESTMENTS | |||
| Intangible assets | -36 | -12 | -133 |
| Property, plant and equipment | -293 | -322 | -1,487 |
| Shares and participations | 0 | -4 | -18 |
| Current-asset properties | -4,408 | -5,286 | -20,047 |
| of which Residential Development | -2,704 | -2,705 | -10,299 |
| of which Commercial Property Development | -1,704 | -2,580 | -9,748 |
| Investments in operations | -4,736 | -5,624 | -21,685 |
| Total Investments | -4,736 | -5,624 | -21,685 |
| OPERATIONS - DIVESTMENTS | |||
| Intangible assets | 0 | 0 | 8 |
| Property, plant and equipment | 64 | 23 | 289 |
| Shares and participations | 9 | 47 | 5,470 |
| Current-asset properties | 5,145 | 7,033 | 28,426 |
| of which Residential Development | 2,144 | 1,913 | 11,548 |
| of which Commercial Property Development | 3,001 | 5,120 | 16,878 |
| Divestments in operation | 5,217 | 7,102 | 34,193 |
| Total divestments | 5,217 | 7,102 | 34,193 |
| TOTAL NET DIVESTMENTS(+)/INVESTMENTS(-) | 481 | 1,478 | 12,508 |
| Depreciation, non-current assets | -672 | -758 | -2,945 |
Capital employed in Project Development (IFRS)
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Residential Development | 15,350 | 13,301 | 13,608 |
| Commercial Property Development | 31,100 | 34,905 | 30,906 |
| Total in Project Development | 46,450 | 48,207 | 44,515 |
Skanska Three month report, January–March 2021
Parent Company¹
The parent company’s revenue consists mainly of amounts billed to Group companies. The balance sheet consists of financial instruments almost exclusively in the form of intra-Group receivables and liabilities. The parent company does not report any significant events during the period.
Summary income statement (IFRS)
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 |
|---|---|---|
| Revenue | 114 | 160 |
| Selling and administrative expenses | -132 | -147 |
| Operating income | -18 | 13 |
| Net financial items | -8 | -7 |
| Income after financial items | -26 | 6 |
| Taxes | 5 | -1 |
| Profit for the period | -21 | 5 |
| Total comprehensive income | -21 | 5 |
Summary balance sheet (IFRS)
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | 7 | 10 | 8 |
| Property, plant and equipment | 0 | 0 | 0 |
| Financial non-current assets² | 12,029 | 11,947 | 12,031 |
| Total non-current assets | 12,036 | 11,957 | 12,039 |
| Current receivables | 98 | 82 | 164 |
| Total current assets | 98 | 82 | 164 |
| TOTAL ASSETS | 12,134 | 12,039 | 12,203 |
| EQUITY AND LIABILITIES | |||
| Equity | 6,674 | 8,796 | 10,652 |
| Provisions | 247 | 258 | 240 |
| Non-current interest-bearing liabilities² | 1,180 | 2,866 | 1,211 |
| Current liabilities | 4,033 | 119 | 100 |
| TOTAL EQUITY AND LIABILITIES | 12,134 | 12,039 | 12,203 |
¹ As a parent company in an IFRS-group, Skanska AB applies RFR2 in its accounting.
² Of these amounts, SEK 445 M (Dec 31, 2020: 384) were intra-Group receivables and SEK 1,180 M (Dec 31, 2020: 1,211) intra-Group liabilities.
The Parent Company’s contingent liabilities totaled SEK 169.6 bn on March 31, 2021 (Dec 31, 2020: 160.6), of which SEK 125.3 bn (Dec 31, 2020: 118.1) were related to obligations on behalf of Group companies. Other obligations, SEK 44.3 bn on March 31, 2021 (Dec 31 2020: 42.5), were related to commitments to outside parties.
Skanska Three month report, January–March 2021 25
Share data
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
|---|---|---|---|
| Earnings per share according to segment reporting, SEK^{1} | 4.59 | 5.78 | 22.46 |
| Earnings per share, SEK^{1} | 2.82 | 2.91 | 23.97 |
| Earnings per share after dilution, SEK^{2} | 2.80 | 2.89 | 23.84 |
| Equity per share, SEK^{3} | 93.17 | 84.25 | 93.67 |
| Adjusted equity per share, SEK^{4} | 117.26 | 116.25 | 117.22 |
| Average number of shares outstanding | 412,380,001 | 411,684,388 | 411,993,869 |
| Average number of shares outstanding after dilution | 415,016,700 | 413,905,491 | 414,304,017 |
| Average dilution, % | 0.64 | 0.54 | 0.56 |
| Number of shares, at balance sheet date | 419,903,072 | 419,903,072 | 419,903,072 |
| Average price, repurchased shares, SEK | 139.03 | 137.54 | 138.45 |
| Number of Series B shares repurchased | 27,558,228 | 26,888,228 | 27,348,228 |
| of which repurchased during the year | 210,000 | 0 | 460,000 |
| Number of shares in Skanska’s own custody | 7,559,916 | 8,107,126 | 7,616,674 |
| Number of shares outstanding | 412,343,156 | 411,795,946 | 412,286,398 |
- Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
- Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
- Equity attributable to equity holders divided by the number of shares outstanding.
- Adjusted equity divided by the number of shares outstanding.
Five-year Group financial summary
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Mar 2019 | Jan-Mar 2018 | Jan-Mar 2017 |
|---|---|---|---|---|---|
| Revenue | 34,390 | 41,166 | 35,102 | 36,950 | 34,182 |
| Operating income | 2,327 | 2,901 | 488 | 652 | 1,849 |
| Profit for the period | 1,892 | 2,383 | 355 | 510 | 1,596 |
| Earnings per share, SEK | 4.59 | 5.78 | 0.86 | 1.25 | 3.90 |
| Return on capital employed, % | 18.9 | 19.0 | 10.5 | 10.4 | 20.8 |
| Return on equity, % | 23.9 | 27.0 | 13.4 | 14.6 | 27.4 |
| Operating margin, % | 6.8 | 7.0 | 1.4 | 1.8 | 5.4 |
| Return on capital employed according to IFRSs, % | 21.1 | 14.6 | 14.4 | 7.9 | 21.9 |
| Cash flow per share according to IFRSs, SEK^{1} | 7.81 | 3.96 | -3.23 | -1.76 | 3.95 |
- Cash flow before change in interest-bearing receivables and liabilities divided by the average number of shares outstanding.
Exchange rates for the most important currencies
| SEK | Average exchange rates | ||
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
| US dollar | 8.40 | 9.67 | 9.21 |
| British pound | 11.57 | 12.39 | 11.81 |
| Norwegian krone | 0.99 | 1.02 | 0.98 |
| Euro | 10.12 | 10.66 | 10.49 |
| Czech koruna | 0.39 | 0.42 | 0.40 |
| Polish zloty | 2.23 | 2.47 | 2.36 |
| Exchange rates on the closing day | |||
| --- | --- | --- | |
| Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 | |
| 8.71 | 10.13 | 8.19 | |
| 12.00 | 12.52 | 11.15 | |
| 1.02 | 0.97 | 0.96 | |
| 10.23 | 11.09 | 10.05 | |
| 0.39 | 0.41 | 0.38 | |
| 2.19 | 2.44 | 2.22 |
Skanska Three month report, January–March 2021
Construction
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Revenue | 29,354 | 35,939 | 140,483 |
| Gross income | 2,126 | 2,211 | 9,344 |
| Selling and administrative expenses | -1,406 | -1,620 | -5,852 |
| Income from joint ventures and associated companies | 2 | -1 | 37 |
| Operating income | 722 | 589 | 3,528 |
| Investments | -311 | -295 | -1,503 |
| Divestments | 64 | 23 | 314 |
| Net divestments(+)/investments(-) | -247 | -272 | -1,188 |
| Gross margin, % | 7.2 | 6.2 | 6.7 |
| Selling and administrative expenses, % | -4.8 | -4.5 | -4.2 |
| Operating margin % | 2.5 | 1.6 | 2.5 |
| Order bookings, SEK bn | 34.9 | 41.3 | 149.8 |
| Order backlog, SEK bn | 193.4 | 199.0 | 178.9 |
| Employees | 29,644 | 31,796 | 30,944 |
Revenue
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Nordics | 12,371 | 13,030 | 56,130 |
| of which Sweden | 7,228 | 7,588 | 33,689 |
| Europe | 5,032 | 6,360 | 24,154 |
| USA | 11,951 | 16,549 | 60,199 |
| Total | 29,354 | 35,939 | 140,483 |
Operating income
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Nordics | 363 | 280 | 1,995 |
| of which Sweden | 168 | 150 | 1,072 |
| Europe | 48 | -4 | 314 |
| USA | 311 | 313 | 1,220 |
| Total | 722 | 589 | 3,528 |
Operating margin, %
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 2.9 | 2.1 | 3.6 |
| 2.3 | 2.0 | 3.2 |
| 1.0 | neg | 1.3 |
| 2.6 | 1.9 | 2.0 |
| 2.5 | 1.6 | 2.5 |
Order backlog
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Nordics | 66,457 | 64,655 | 63,514 |
| of which Sweden | 34,797 | 38,474 | 34,558 |
| Europe | 46,814 | 30,387 | 37,680 |
| USA | 80,171 | 103,978 | 77,729 |
| Total | 193,443 | 199,020 | 178,924 |
Order bookings
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 13,835 | 15,828 | 59,254 |
| 7,462 | 8,239 | 30,502 |
| 11,508 | 11,627 | 40,147 |
| 9,592 | 13,819 | 50,401 |
| 34,935 | 41,274 | 149,802 |
Book-to build, R-12m
| Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|
| 103 | 105 | 106 |
| 89 | 106 | 91 |
| 175 | 87 | 166 |
| 83 | 101 | 84 |
| 107 | 100 | 107 |
Skanska Three month report, January–March 2021 27
Residential Development
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Revenue | 4,509 | 3,400 | 13,070 |
| Gross income | 837 | 554 | 2,178 |
| Selling and administrative expenses | -168 | -160 | -634 |
| Operating income | 669 | 394 | 1,543 |
| Operating margin, % | 14.8 | 11.6 | 11.8 |
| Investments | -2,704 | -2,709 | -10,420 |
| Divestments | 2,144 | 1,944 | 11,710 |
| Net divestments(+)/investments(-) | -560 | -765 | 1,291 |
| Capital employed, SEK bn | 15.4 | 13.3 | 13.6 |
| Return on capital employed, % 1 | 14.3 | 11.5 | 12.8 |
| Employees | 572 | 516 | 571 |
1 Rolling 12 months.
Revenue
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Nordics | 4,084 | 3,035 | 11,597 |
| of which Sweden | 2,864 | 1,435 | 7,042 |
| Europe | 424 | 364 | 1,473 |
| Total | 4,509 | 3,400 | 13,070 |
Operating income 1
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
|---|---|---|---|
| Nordics | 581 | 355 | 1,345 |
| of which Sweden | 438 | 198 | 797 |
| Europe | 88 | 39 | 198 |
| Total | 669 | 394 | 1,543 |
1 Development gain only. Construction margin reported under Construction.
Operating margin, % 2
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 14.2 | 11.7 | 11.6 |
| 15.3 | 13.8 | 11.3 |
| 20.8 | 10.6 | 13.5 |
| 14.8 | 11.6 | 11.8 |
Homes started
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
|---|---|---|---|
| Nordics | 975 | 562 | 2,937 |
| of which Sweden | 795 | 157 | 2,124 |
| Europe | 86 | 409 | 870 |
| Total | 1,061 | 971 | 3,807 |
Homes sold
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 1,110 | 734 | 3,352 |
| 870 | 376 | 2,341 |
| 252 | 177 | 639 |
| 1,362 | 911 | 3,991 |
Homes under construction
| Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 | |
|---|---|---|---|
| Nordics | 5,588 | 5,407 | 5,518 |
| of which Sweden | 4,140 | 3,386 | 3,901 |
| Europe | 1,516 | 1,541 | 1,430 |
| Total | 7,104 | 6,948 | 6,948 |
Completed unsold, number of homes
| Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|
| 173 | 130 | 141 |
| 63 | 65 | 68 |
| 13 | 9 | 13 |
| 186 | 139 | 154 |
Homes under construction of which sold, %
| Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|
| 80 | 71 | 76 |
| 80 | 73 | 77 |
| 69 | 58 | 55 |
| 77 | 68 | 72 |
Skanska Three month report, January–March 2021
Commercial Property Development
Revenue and earnings
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Revenue | 2,605 | 4,759 | 14,983 |
| of which from divestment of properties | 2,413 | 4,546 | 13,827 |
| Gross income | 1,232 | 2,330 | 4,701 |
| Selling and administrative expenses | -168 | -215 | -797 |
| Income from joint ventures and associated companies | 3 | -3 | -8 |
| Operating income | 1,066 | 2,112 | 3,897 |
| of which gain from divestments of properties 1 | 1,223 | 2,285 | 4,750 |
| of which writedowns/reversal of writedowns | 0 | 0 | -281 |
| 1 Additional gains included in eliminations | 34 | 122 | 359 |
| Investments | -1,703 | -2,581 | -9,777 |
| Divestments | 3,001 | 5,120 | 16,988 |
| Net divestments(+)/investments(-) | 1,298 | 2,539 | 7,211 |
| Capital employed, SEK bn | 31.1 | 34.9 | 30.9 |
| Return on capital employed, % 2 | 9.0 | 16.0 | 11.9 |
| Employees | 447 | 481 | 445 |
2 Rolling 12 months.
Revenue
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Nordics | 1,735 | 3,672 | 5,420 |
| Europe | 788 | 968 | 2,835 |
| USA | 81 | 119 | 6,728 |
| Total | 2,605 | 4,759 | 14,983 |
Operating income
| SEK M | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|---|
| Nordics | 883 | 1,766 | 1,870 |
| Europe | 216 | 367 | 661 |
| USA | -33 | -20 | 1,366 |
| Total | 1,066 | 2,112 | 3,897 |
of which from divestments
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 1,676 | 3,622 | 5,003 |
| 737 | 925 | 2,664 |
| 0 | 0 | 6,160 |
| 2,413 | 4,546 | 13,827 |
of which from divestments
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
|---|---|---|
| 963 | 1,848 | 2,189 |
| 259 | 419 | 865 |
| 0 | 18 | 1,696 |
| 1,223 | 2,285 | 4,750 |
Capital employed
| SEK M | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Nordics | 11,451 | 11,381 | 11,618 |
| Europe | 9,273 | 10,037 | 9,744 |
| USA | 10,376 | 13,487 | 9,544 |
| Total | 31,100 | 34,905 | 30,906 |
PPP-portfolio value
Unrealized development gain in PPP-portfolio
| SEK bn | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Present value of cash flow from projects | 2.1 | 4.9 | 2.2 |
| Present value of remaining investments | -1.0 | -1.0 | -1.0 |
| Net present value of projects | 1.1 | 3.9 | 1.2 |
| Carrying amount before Cash flow hedge / Carrying amount | -0.6 | -2.4 | -0.7 |
| Unrealized development gain | 0.5 | 1.5 | 0.5 |
| Cash flow hedge | 0.3 | 0.3 | 0.3 |
| Effect in unrealized equity 1 | 0.8 | 1.8 | 0.8 |
1 Tax effects not included.
Skanska Three month report, January–March 2021
About Skanska
Skanska is one of the world's leading construction and project development companies, focused on selected home markets in the Nordics, Europe and USA. Supported by global trends in urbanization and demographics, and by being at the forefront in sustainability, Skanska offers competitive solutions for both simple and the most complex assignments, helping to build a sustainable future for customers and communities.
Skanska's business model
Internal contracts and cooperation
Operational and financial synergies are, amongst other things, achieved through investments in Project Development, generating internal contracts for Skanska's Construction stream, as well as through the collaboration between Business Units from different markets. Currently, SEK 13.9 billion of Skanska's total order backlog are contracts involving more than one Business Unit, with revenue from internal contracts amounting to SEK 12.8 billion.
Construction revenue from internal Project Development contracts amounted to:
During the quarter, Skanska has invested in the second phase of the Equalbrim and has project to the Business Romania. The second building will have a total leasable area of 19,900 square meters. The project is LEED Gold pre-certified. At the companies shared its basic building Equalbrim complex will offer 40,800 square meters of leasable area. The project is scheduled for completion in 2023.
Value of orders in backlog generated through cooperation between Business Units:
Skanska USA Building and Skanska USA Civil are leading the design head plant within the business unit over the world. The redevelopment of LaGuardia, one of the busiest airports in USA, began in 2018 and is slated for completion by the fall of 2022. The overall business complex and the largest project ever undertaken by Skanska.
SKANSKA
Skanska AB
www.group.skanska.com/investors
Skanska's home markets
For further information, please contact:
Magnus Persson, Executive Vice President and CFO, Skanska AB, tel +46 10 448 8900
André Löfgren, Senior Vice President, Investor Relations, Skanska AB, tel +46 10 448 1363
Karolina Cederhage, Senior Vice President, Communications, Skanska AB, tel +46 10 448 0880
Jacob Birkeland, Head of Media Relations, Skanska AB, tel +46 10 449 1957
This report will also be presented via a telephone conference and a webcast at 10:00 a.m. (CET) on April 29, 2021.
The telephone conference will be webcasted live at www.group.skanska.com/investors, where a recording of the conference will also be available later.
To participate in the telephone conference, please dial +46 8 505 583 51, or +44 333 300 9271, or +1 844 625 1570.
This and previous releases can also be found at www.skanska.com/investors.
This is information is such that Skanska AB is obliged to make public in accordance with the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 a.m. (CET) on April 29, 2021.
Enumerated amounts presented in tables and statements may not always agree with the calculated sum of the related line items due to rounding differences. The aim is for each line item to agree with its source and therefore there may be rounding differences affecting the total when adding up the presented line items.