Below are definitions and explanations of financial as well as industry-related and other miscellaneous terms that we use within Skanska and when we communicate around Skanska.
AB - An abbreviation for the Swedish word 'Aktiebolag', meaning 'incorporated' (Inc. or Ltd.).
Average capital employed – Calculated on the basis of five measuring points: half of capital employed on January 1 plus capital employed at the end of the first, second and third quarters plus half of capital employed at year-end, divided by four.
Average visible equity – Calculated on the basis of five measuring points: half of equity attributable to equity holders (shareholders) on January 1 plus equity attributable to equity holders at the end of the first, second and third quarters plus half of equity attributable to equity holders at year-end, divided by four.
BIM - Building Information Modeling, an IT-tool that allows us to plan construction more efficiently, using 4D animations.
BoKlok - A residential brand we own jointly with IKEA.
Brand Survey - Every second year, we measure our position and how we are perceived in each market.
BREEAM - BREEAM is one of the world's leading systems for environmental certification of buildings. Numerous similarities exist between BREEAM and LEED; both take a holistic approach to a building's environmental performance. BREEAM stands for British Research Establishment Environmental Assessment Method.
BU - Business Unit
BUP - Business Unit President
Bundled Construction – Project development that may occur within Construction operations for a specific user or tenant.
Business Stream - Skanska has four business streams; Construction and three Project Development streams: Infrastructure, Commercial Property and Residential.
Capital employed in business streams, markets and business/reporting units – Total assets minus tax assets and deposits in Skanska's treasury unit minus non-interest bearing liabilities minus provisions for taxes and tax liabilities. Capitalized interest expense is removed from total assets for the Residential Development and Commercial Property Development segments.
Cash flow per share – Cash flow before change in interest-bearing receivables and liabilites divided by the average number of shares outstanding.
Cluster - A way to promote collaboration across Skanska; two or more Business Units are measured towards joint financial targets.
CEEQUAL – A British assessment and certification tool developed with the aim of improving environmental performance in civil engineering projects.
CCI - Corporate Community Involvement Framework, our Group-wide policy for interaction with communities and related organizations.
CD - Commercial Property Development (one of our four business streams).
CDE - Skanska Commercial Development Europe (one of our Business Units)
CDN - Skanska Commercial Development Nordic (one of our Business Units)
CDUS - Skanska USA Commercial Development (one of our Business Units)
Color Palette™ - An internal measurement tool for our Green business and our Journey to Deep Green™.
Comprehensive income – Change in equity not attributable to transactions with owners.
Consolidated capital employed – Total assets minus non-interest-bearing liabilities.
Consolidated operating cash flow – In the consolidated operating cash flow statement, which includes taxes paid, investments are recognized both in cash flow from business operations and in cash flow from strategic investments.
Consolidated return on capital employed – Operating income plus financial income as a percentage of average capital employed.
Debt/equity ratio – Interest-bearing net debt divided by visible equity including minority interest.
Deep Green - Our classification of projects where the construction process and product performance has a near-zero, future proof impact on the environment.
E2L - Executive to Leader, a leadership development program in the U.S. for American and European leaders.
Earnings per share – Profit for the year attributable to equity holders divided by the average number of shares outstanding.
Earnings per share after dilution – Profit for the year attributable to equity holders divided by the average number of shares outstanding after dilution.
EBIT - Earnings before Interest and Taxes (the net earnings, after overhead is subtracted).
EHS - Environment, Health and Safety (often called Environmental, Health and Safety when used as an adjective, e.g. when referring to a program).
EPN - The Environmental Performance Network; collaboration forum for Skanska's Heads of Environmental Management.
Equity/assets ratio – Visible equity including minority interest as a percentage of total assets.
Equity per share – Visible equity attributable to equity holders divided by the number of shares outstanding at year-end.
EU GreenBuilding – A European Union system for environmental certification of buildings. To meet the requirement for EU GreenBuilding classification, a building's energy use must be at least 25 percent lower than the national standard for newly constructed buildings (in Sweden, set by the National Board of Housing, Building and Planning).
Free working capital – Non interest-bearing liabilities reduced by non interest-bearing receivables, excluding taxes. This corresponds to the negative working capital in Construction with reversed sign.
GDP – Gross domestic product
Global Expert Groups - Within different topics, Skanska has appointed experts who can answer your questions or connect you to the right people.
Global Safety Leadership team - A senior and cross-functional team responsible for overseeing the development and implementation of the global safety strategy.
Great Boss Index - A Group-wide and annual measuring of the quality of our managers.
Green Initiative/Join our Journey to Deep Green - An "umbrella" term to describe all the activities we have underway to make Skanska the leading Green project developer and contractor in its markets.
Green Refurbishment - Development of green offerings for the existing buildings market.
GSI - Green Strategic Indicators; how we measure our 2015 ambition to be the leading Green project developer and contractor.
GSSD - Global Safety Stand Down; if a fatal accident occurs all Skanska employees gather at sites and in offices to pay respect to the victim and to discuss the accident; by understanding the causes we aim to prevent future accidents.
GSU - Skanska AB's Group Staff Units, who assist tne Senior Executive Team and the Business Units on Group-wide matters.
HR - Human Resources
ID - Infrastructure Development (one of our four business streams and one of our Business Units) working with Private Public Partnership solutions.
IFE - Injury-free environment
IFRIC (International Financial Reporting Interpretations Committee) – A series of interpretations related to international accounting standards.
Interest-bearing net receivable – Interest-bearing assets minus interest-bearing liabilities.
Interest cover – Operating income and financial income plus depreciation/amortization divided by net interest items.
IR - Investor Relations
LTAR - Lost Tıme Accident Rate; an international and Skanska-wide way of reporting how much work time is lost due to accidents. It calculates as follows: (Number of lost time accidents times 1,000,000 hours) divided by (total labor hours).
LEED® – Leadership in Energy and Environmental Development is an international system for environmental certification of buildings. Resource use, the location, design and indoor climate of the building as well as minimization of energy consumption and waste provide the basis for LEED classification.
Net working capital – Net non-interest-bearing receivables and liabilities including taxes.
Nordic+ - A strategic leadership program for managers in the Nordics.
NPU - Skanska Nordic Procurement Unit
One Skanska - An expression for our move towards becoming an integrated company which fully leverages on our know-how and experience.
Operating cash flow – Cash flow from operations before taxes and before financial activities.
Operating net financial assets/liabilities – Interest-bearing net receivables/liabilities excluding construction loans to cooperative housing associations and interest-bearing pension liabilities.
Operating net on properties – Rental income and interest subsidies minus operating, maintenance and administrative expenses as well as real estate tax. Site leasehold rent is included in operating expenses.
OPS - Swedish expression for Public Private Partnership (PPP).
ORA – Operational Risk Assessment, Skanska's risk management model.
Order backlog –
Contracting assignments: The difference between order bookings for the period and accrued revenue (accrued project costs plus accrued project income adjusted for loss provisions) plus order backlog at the beginning of the period.
Services: The difference between order bookings and accrued revenue plus order backlog at the beginning of the period.
Order bookings –
Contracting assignments: Upon written order confirmation or signed contract, where financing has been arranged and construction is expected to begin within 12 months. If a previously received order is cancelled in a subsequent quarter, the cancellation is recognized as a negative item when reporting order bookings for the quarter when the cancellation occurs. Reported order bookings also include orders from Residential Development and Commercial Development, which assumes that a building permit has been obtained and construction is expected to begin within three months.
Services: For fixed-price assignments, upon signing of contract. For cost-plus assignments, order bookings coincide with revenue. For service agreements, a maximum of 24 months of future revenue is included.
No order bookings are reported in Residential Development and Commercial Property Development.
OSHA - Occupational Safety and Health Association, the governing body for workplace safety in the U.S.
Other comprehensive income – Comprehensive income minus profit according to the income statement. The item includes translation differences, hedging of exchange risk in foreign operations, effects of actuarial gains and losses on pensions, effects of cash flow hedges and tax attributable to other comprehensive income.
Outperform targets - The financial targets each Business Unit aims for each year.
P3 - U.S. expression for Public Private Partnership (PPP)
PFI – Private Finance Initiative, privately financed infrastructure projects, used in the U.K.
PPE - Personal Protective Equipment; the safety gear you are required to use on site.
PPP – Public-Private Partnership, privately financed infrastructure projects.
RD - Residential Development (one of our four business streams).
Return on capital employed in business streams, markets and business/reporting units – Operating income plus financial income minus interest income from Skanska's treasury unit and other financial items as a percentage of average capital employed. Capitalized interest expense is removed from total assets for the Residential Development and Commercial Property Development segments.
Return on equity – Profit attributable to equity holders as a percentage of average visible equity attributable to equity holders.
RFP - Request for Proposals.
RFQ - Request for Qualifications (referring to the time in a project when qualified subcontractors are solicited).
RSS - Really Simple Syndication is a notification system that alerts you when updates are made to a website of your interest. By subscribing to an RSS feed, content will be sent to your electronic device (desktop, smarphone, tablet) without you having to seek out and visit a website to check for updates.
Safety Road Map - A Group-wide tool to guide and support Business Units on their route to meeting the 2015 milestones in Safety.
Safety Week - One week every year when all of Skanska puts extra focus on safety.
SEK - Swedish Kronor/Crowns (Sweden's currency)
SEOP – Skanska Employee Ownership Program
SET – Senior Executive Team (Skanska's corporate management team)
SFS – Skanska Financial Services
Skanska Awards - Every year, the best people and projects from across Skanska are selected and celebrated; this is Skanska's most prestigious awards.
Skanska Leadership Profile - A Group-wide competency profile which defines what is expected from white-collar employees and secures that we have the competencies needed to fulfill the targets of our business plan.
Skanska Management Meeting - A bi-annual event gathering the top leaders from across Skanska; the objective is to follow up on the strategy and performance and to facilitate networking among Skanska leaders.
Skanska Recruit - A recruitment tool monitoring job openings within Skanska.
Skanska Stretch - A Group-wide development program which aims to identify, develop and retain our existing top talent early in their careers.
Skanska Talent - Group-wide talent management system, used to support performance and development discussions.
Skanska Unlimited - A Group-wide exchange program enabling employees to work abroad for up to six months.
Skanska Xchange - A development project in the Nordic countries aiming to reduce the cost of residential construction.
SPN - The Safety Performance Network; collaboration forum for Skanska's Heads of Safety.
SRT – Senior Executive Team Risk Team
STAP – Skanska Tender Approval Procedure
STEP – Skanska Top Executive Program
Stuart Graham Life-Long Achievement Award - Also known as the Dirty Boots Award; given to a manager who is working close to the projects and has a long outstanding track record.
Sustainability/Sustainable Development - Taking a balanced approach to economic development, environmental and social responsibility. The aim is to reward our shareholders but not at the expense of other stakeholders in society.
Yield on properties – Operating net divided by year-end carrying amount.