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Targets

Our overall goals are to generate customer and shareholder value. We aim at becoming a leader in the home markets of our construction business units and a leading project developer in local markets. As a means to reach our financial targets, we have qualitative targets.

Overall goals:

  • To generate customer and shareholder value.
  • To be a leader, in terms of size and profitability, within its segments in the home markets of its construction business units.
  • To be a leading project developer in local markets and in selected product areas.

Financial targets 2016-2020

Skanska’s business plan for the period 2016–2020 sets a number of targets. These financial targets are judged to be those that best reflect the profitability of operations and show the Group’s financial capacity for investment and growth. Return on equity and on capital employed are measures of how well shareholder and lender capital are being used (capital efficiency), and are considered a fair measurement for the Group and the project development streams. Operating margin, which indicates profitability in the business after selling and administrative expenses, is an important measure of performance in the Construction business stream. The margins depend on the type of business being conducted and can also vary between different geographical markets.

Outcome - 2015

Skanska’s business plan for the period 2011–2015 set a number of targets that are presented below. These financial targets are judged to be those that best reflect the profitability of operations and show the Group’s financial capacity for investment and growth.

The table shows the financial targets for the period 2011–2015 as well as the outcome for 2015. In 2015, all of the financial targets in the business plan were reached exept for the Construction target.

AreaTargets 2011-2015Outcome 2015Goal met

Group

Return on equity for the period of 18–20%

Group: Return on equity was 22.5% Yes
Financial strength Net operating financial assets/liabilities will be positive Net operating financial assets/liabilities were SEK 13.8 billion Yes
Construction

Average margin over a business cycle 3.5–4.0%

The operating margin was
2.8%

No
Project development operations

Annual return on capital employed for the combined
project development operations 10–15%

 

Return on capital employed was
14.9%

Yes

 

For more detailed information on our targets, see Financial targets.

Qualitative targets

In addition to financial targets, Skanska works actively to achieve a number of ambitious qualitative targets. 

 

AreaTargets 2011-2015Outcome 2015Goal met

Safety

To be an industry leader

Worksite safety improvements plateaued during the period. A lost time accident rate (LTAR) of about 3.0 was short of the LTAR target of 1.0. Work underway, target not fully reached

Risk management

To be an industry leader

Industry-leading processes for risk management are in place, but there is still a need for improvements. Implementation continues at Business Unit level.

Work underway, target not fully reached

People development

To be an industry leader

For people development, the programs and tools, leadership profile and employee ownership program are in place. There is a need for improvements within Diversity and Inclusion and in leadership.

Yes

Green

To be an industry leader

Skanska has green solutions in place, but there is varying interest in the markets. All Commercial Development projects are Green, and in Construction up to 75 percent of order bookings are Green. Yes

Ethics

To be an industry leader

Skanska still has ethical risks, and needs to continue training in this area.

Work underway, target not fully reached
Last updated: 10/1/2015