Skanska

Operations

Skanska is one of the largest construction companies in the world, with leading positions in its multiple home markets of Europe, the U.S. and Latin America.

Its mission is to develop, build and maintain the physical environment for living, traveling and working. Skanska’s overall goal is to generate customer and shareholder value, which is created in well-implemented and profitable projects.

The company’s global presence creates operational synergies with respect to know-how, purchasing and product development. Financial synergies are created by investing cash flow from the construction operations in the company’s project development business, with favorable return on capital.

Operations are conducted in four so-called business streams: Construction, Residential Development, Commercial Development and Infrastructure Development. Construction involves buildings and civil construction projects as well as residential construction and is Skanska’s largest business stream. The other business streams work with value-creating product development.

Residential Development develops housing projects for immediate sale. Commercial Development initiates, develops, leases and sells commercial real estate projects, with a focus on offices, shopping centers and logistics properties. Infrastructure Development develops and invests in privately financed infrastructure projects, such as roads, hospitals, schools and power plants. Skanska strives to be the leading builder and project developer in its markets as well as in environmentally adapted and energy-efficient solutions.

Skanska - Our ownership perspective

Comprehensive know-how in construction combined with a process focus has created a leading construction services company with world-class value-creating project development.

• Efficient construction operation generates good cash flows.
• Successful model for value-creating project development.
• Strategic focus on environmentally adapted, energy-efficient solutions.

Ownership focus

Continued favorable profitability for the construction operations combined with selective expansion in value-creating projects.

Skanska - Performance 2010

• Net sales amounted to SEK 121.7 billion (135.8).
• Income after financial items rose 6% to SEK 5.3 billion (5.0).
• Operating income for Construction, the largest business stream, amounted to SEK 4.4 billion (4.9) and the operating margin rose to 3.9% (3.7).
• Skanska’s ownership stake in the Chilean Autopista Central Highway was sold for approximately SEK 6 billion, generating a capital gain of approximately SEK 5 billion.