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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 financial targets 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 fair measurements for the Group and the Project Development business streams, respectively. The operating margin is an expression of the profitability and efficiency within Construction. The margin is dependent on the mix of contract types and the different geographical markets.

Outcome - 2017

The table shows the financial targets for the period 2016–2020 as well as the outcome for 2017. In 2017, all of the financial targets in the business plan were reached except for the Construction target.

Area Targets 2016-2020 Outcome 2017 Goal met

Group

Return on equity for the period of ≥ 18%

Group: Return on equity was 18.6% Yes
Financial strength Net operating financial assets/liabilities can be negative if opportunities arise Net operating financial assets/liabilities were SEK 9.7 billion Yes
Construction

Average margin over a business cycle ≥ 3.5%

The operating margin was
0.8%

No
Project Development

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

Return on capital employed was
14.5%

Yes

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