Annual and 
Sustainability
Report 2023

Contents

Group overview
This is Skanska
2023 in brief

Annual and Sustainability Report 2023

2

Content

CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governanceGroup overview
This is Skanska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42023 in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Comments by the President and CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
Targets and outcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Global trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Our responsible investment story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20

Remuneration report
Risk and opportunity management
Financial information

Operations
Our business streams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  23
Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
Residential Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
Commercial Property Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32
Investment Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
Sustainability report
Sustainability highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Our sustainable impact areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42
Focusing on most material topics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43
Our global commitments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  44
Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
Resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  54
Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  60
Sustainability information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  66
GRI index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  215Corporate governanceCorporate governance report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  80
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  90
Group Leadership Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  92

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Remuneration report
Remuneration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  94
Risk and opportunity management
Risk and opportunity management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Financial information
Financial analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  107Consolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  113Consolidated statement of comprehensive income . . . . . . . .  113Consolidated statement of financial position . . . . . . . . . . . . . . . .  114Consolidated statement of changes in equity . . . . . . . . . . . . . . . .  115Consolidated cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  116Consolidated cash flow statement, specification . . . . . . . . . . . . 117
Parent company income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  118Parent company balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Parent company statement of changes in equity . . . . . . . . . . . 120
Parent company cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Notes including accounting and valuation principles . . . . . .  121
– Note 67 Allocation of earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Auditor’s Sustainability report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  214Quarterly information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  219Share data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  221AGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Investor calendar and Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Refer to segment reporting

Segment and IFRS reporting
Skanska’s business streams – Construction, Residential Development, C­ ommercial
Property Development and Investment Properties – represent the Group’s
operating segments. The point at which revenue is recognized differs between
segment and IFRS reporting for Residential Development and Commercial
Property Development. In this report, revenues and earnings for these businessstreams on pages 4–39 refer to segment reporting, unless stated otherwise. The
financial reports, including the statement of financial position and cash flow,
have been prepared in accordance with IFRS unless stated otherwise.
About this report
The Annual and Sustainability Report 2023 is submitted by the Board of
Directors and the President and CEO of Skanska AB (publ) to describe theoperations of both the company and the Group. The statutory annual reportconsists of the Board of Directors' Report and the financial reports on pages
16, 48, 61, 63–93 and 99–208. Skanska’s external auditors have audited thestatutory annual report consisting of the Board of Directors' Report and thefinancial reports excluding the statutory sustainability report according to theopinion on page 209. Skanska's external auditors have also issued a limited
assurance report on Skanska AB's greenhouse gases, health and safety,
energy and waste reporting. Pages 16, 48, 61, 63–78, 99–105 and 130–133(note 4 Operating segments) include Skanska’s statutory sustainability report,
according to the Swedish Annual Accounts Act. Skanska is reporting inaccordance with the Global Reporting Initiative’s (GRI) Standards. Skanska
aims to ensure that all information and data is relevant, transparent, consistent,
accurate and c­ omplete and that it provides an objective picture of the Group’s
operations, but can provide no assurance that we will at all times be fullycompliant. Further information about Skanska’s sustainability efforts can befound at: group.skanska.com/sustainability.
This is a copy of the original version of the Annual and Sustainability
Report 2023, which is prepared in Swedish in the European single electronic
format (Esef).
This document is in all respects a translation of the Swedish original
Annual and Sustainability Report 2023. In the event of any differences
between this translation and the Swedish original, the latter shall prevail.
Skanska AB, Swedish corporate identity number 556000-4615.

Cover: George Washington Bridge, New York and New Jersey, USA

Board of Directors’ report includes the following pages:
16, 48, 61, 63–93, 99–112, 130–133 (note 4 Operating segment), 207 (note 67 Allocation of earnings)
Skanska statutory sustainability report is included in the Board of Directors’ report and includes the following pages:
16, 48, 61, 63–78, 99–105, 130–133 (note 4 Operating segment)

Contents

Group overview
This is Skanska
2023 in brief

Annual and Sustainability Report 2023

3

Our projects shape the way the people live, work and connect. The pages 'In focus',offers an insight into some of the most exciting projects we worked on during the year.

CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Portland International Airport, Oregon, USA
A mass-timber marvel.
Page 21

Powerhouse Lade, Trondheim, Norway
Turning homes into Powerhouses.
Page 31
Norton Folgate, London, UK
Innovating to retain a slice of London’srich history.
Page 45

IIJA, USA
Investment act strengthening US
infrastructure.
Page 13Hyllie Terrass, Malmö, Sweden
Combining forces to cut climate impact.
Page 39
Interview with Therese Tegner,
EVP Human Resources
People want to make an impact.
Page 17
Merkuria, Prague, Czechia
The complex path to circularity.
Page 53

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Lynnwood Link Extension, Seattle, USAA smoother journey for commuters – and fish.
Page 27

H2Offices, Budapest, Hungary
Business hub more than an office.
Page 35

CLIMB
Understanding our impact on biodiversity.
Page 57

Slussen, Stockholm, Sweden
A 400-year-old landmark, remade for a new era.
Page 59

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Market and trends
Strategy

Annual and Sustainability Report 2023

4

We build for abetter ­society

Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

We are one of the world’s largest project development and construction
companies, operating across select home markets in the Nordics, Europe
and the USA.
A unique combination of global experience, local expertise and financial
strength empowers us to take on the most complex construction projects
in the world. Our ability to understand the need of local communities
makes us a trusted partner for large commercial and residential projects
that require our presence across the whole value chain, from project
development and construction to property asset management.

Financial information

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City Library Stockholm Sweden

With a focus on strengthening our leadership in sustainable solutions
together with our knowledge and foresight, we build for a better andmore resilient society. And as we do so, we build long-term value for ourcustomers and shareholders.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy

Annual and Sustainability Report 2023

5

Global experience,
local expertise

Revenue, 2021–2023 average
Construction, 89%
Commercial Property
Development, 6%
Residential Development, 5%
Investment Properties, 0%Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report

With the expertise of our 27,000
employees, and together withour customers and partners, wecreate innovative solutions that
support sustainable living beyond
our lifetime.

USA

Nordics

EuropeOperating income, 2021–2023 average

40%

42%

18%

Construction, 72%
Commercial Property
Development, 22%
Residential Development, 6%
Investment Properties, 0%

Risk and opportunity management
Financial information
Share of revenue per market based on a 3-year average.

Materialproduktion 49%

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Construction

Residential
Development

Commercial Property
Development

Build sustainable buildings andinfrastructure.

Develop and build attractive andenergy-efficient homes.

Byggverksamhet
10%
Shape sustainable
and more

Page 24

Page 28

energy-efficient places where
people can connect.
Page 32

Användning 41%

Investment
Properties
Actively manage a high-quality
property portfolio in Sweden.

Page 36

Contents

Group overview
This is Skanska
2023 in brief
CEO statement

Annual and Sustainability Report 2023

62023 in brief

Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

Construction• Solid performance in our Construction
operations with robust order bookings andan operating margin in line with our long-termtarget.
Property businesses• Performance in our property businesses(Residential Development, Commercial
Property Development and Investment
Properties) was significantly impacted
by lower sales volumes, asset impairment
charges and changes in fair market
values due to weaker property markets.

Solid financial position• We maintained a solid financial position.
• The Board of Directors proposes a
dividend of SEK 5.50 per share.
Sustainability development• 60 percent reduction of carbon emissions
from our own operations (scope 1 and 2)
compared to our base year of 2015.

Financial information

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Key ratios (SEK M, unless otherwise stated)
Revenue
Operating income
Profit for the period
Earnings per share, SEK
Operating cash flow from operations
Adjusted interest-bearing net receivables(+)/net debt(-)
Operating margin, Construction, %ROCE in Project Development, %ROCE in Investment Properties, %Return on equity, %Order bookings, SEK bn
Order backlog, SEK bn
Average number of employees

2023
157,052
3,231
3,272
7.89
1,148
10,363
3.5
-3.7
-1.6
5.8
165.8
229.6
27,2562022
161,602
9,297
7,702
18.62
-2,263
12,130
3.7
11.8
13.6
20.0
162.7
229.8
28,380

Revenue 2023,
SEK M

Average number of employees

Reduction of carbon
emissions¹, %157,052
27,256-60

1 Reduction of carbon emissions from our own operations (scope 1 and 2) since 2015.

Contents

Group overview
This is Skanska
2023 in brief

Annual and Sustainability Report 2023

7

Highlights of the year

CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
FundingGlobal leader

SEK

Named by Forbes M­ agazine
as one of the World's Best
Employers, based on
employee assessments.

230 billion

Order backlog remains high as a resultof a strong order intake during 2023,
especially in Norway and the USA withseveral new large civil projects.

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Divestment of H2Offices
Divestment of the first phase of H2Offices
in Budapest, Hungary, for SEK 1.2 billion.
For 2023, seven properties were divested inCommercial Property Development.

Climate leadership

SEK
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4.6 billion

We issued new green bonds to financethe development of sustainable
commercial real estate projects.

We were named “Climate Leader in Europe”
in the prestigious Financial Times ranking,for the second consecutive year.

Divested ownershipof LaGuardia
We divested our ownership (32 percent) of
LaGuardia Terminal B in New York, USA,for USD 115 M, about SEK 1.2 billion. The
buyers are existing partners MI LaGuardia
CTB, LLC and Vantage Airport Group(New York) LLC.

Growing Investment
Properties portfolio
Office buildings Sthlm04 in Stockholmand Hyllie Terrass in Malmö were acquiredby the Investment Properties businessstream in 2023.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy

Annual and Sustainability Report 2023

8

Strong player along
the entire value chain

Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

For Skanska, 2023 was characterized by strong delivery
in our Construction business stream and impact of weakproperty markets on our Project Development businessstreams. We are maintaining our financial strength. I am
convinced that our focus on sustainability and digitalization
will continue to set us apart and create value for ourshareholders, customers and business partners.

Financial information
Yet another strong year for Construction
We have proven our dedication to strong
and stable performance in Construction
with another year of solid margins and goodorder intake. A balanced portfolio of projects
with exposure to various geographies,
segments and sectors provides stability to
our Construction operations. Over the past
year, we have experienced weaker markets in
Europe, while the US market has been strong.
The civil segment is stronger than building inmost markets, which has been reflected in theorder intake. We expect to see some of thesetrends continue in 2024. We will stay selective
and focus on picking projects that suit ourexperience and competence, prioritizing
strong delivery so that we can exceed ourcustomers’ expectations.

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Weak property markets
Within Project Development, the sharp
increase in interest rates resulted in low
divestment activity and made it more difficult
to assess the market values of both residential
and commercial property assets. While
our growth strategy for these businesses is
on hold, we continue to focus on sales andleasing activities to ensure that we have an
attractive offering to the market once activity
increases. There is long-term demand for
quality, flexible and energy-efficient properties in both the residential and commercial
segments.
In Investment Properties, our newest businessstream, we are building a portfolio of themost attractive office properties in Sweden’slargest cities. We continued to grow theportfolio and by the end of 2023, we held fivehigh-quality office properties in Stockholm
and Malmö.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome

Annual and Sustainability Report 2023

9

”We are maintaining ourfinancial strength.”

Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

The year in briefGroup operating income amounted to
SEK 3.2 billion (9.3). In Construction theoperating margin was in line with the longterm target at 3.5 percent (3.7). Return on
capital employed in Project Development andInvestment Properties were both negative,-3.7 percent (8.1) and -1.6 percent (13.6),
explained by weak property markets. Returnon equity was 5.8 percent (15.3), below ourtarget of at least 18 percent. At year-end, ourfinancial position was robust and adjusted
net cash was SEK 10.4 billion (12.1), comparedto our SEK -10 billion limit of adjusted net debt.
Our Board of Directors' proposes a dividendof SEK 5.50 per share (7.50).
Sustainability and digitalization
We continued to make progress on oursustainability targets in 2023. Carbon
emissions in our own operations, scope 1
and 2, decreased: by the end of the year they
were 60 percent lower than in our base year
2015. The progress in 2023 was mostly
explained by increased purchase of renewableenergy and use of biofuels. Increased efficiency
and further use of electric machinery andbiofuels together with knowledge transfer will
be important to our continued progress. Our
value chain emissions in Project Development,
scope 3, dropped significantly in 2023. Thechange is however largely driven by lowtransaction activity in these business streams.

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As a responsible business, our work is alignedwith the UN Sustainable Development Goals,
and we remain committed to the universal
sustainability principles defined by the UN
Global Compact. Our industry is associatedwith accidents and lasting health problems,and safety is therefore a top priority. We
apply industry-leading safety standards andsolutions, foster an inclusive culture, andfocus on systematic high-impact targeted
actions. We cannot rest in this effort, but I am
pleased that the Group Lost Time Accident
Rate for 2023 decreased to 2.6 (2.9) and that
we did not have any fatalities on our projectsites. We remain committed to ensuring safeand healthy workplaces for all our employees
and subcontractors.

projects with the potential of being scaled
across our units. Looking ahead, generative
AI and machine learning have the potential
to make large amounts of data available for
improved decision making and increased
efficiency.

Earnings per share

Unique offering
At Skanska, we have a unique offering in
the market. We are a strong player along
the entire value chain, with opportunities toshare knowledge, improve and innovate. We
have an organization with highly skilled anddedicated people. Our financial strength
makes us a reliable business partner andmeans that we own our own decisions in all
market phases.

Operating margin – Construction

In 2023 we have further developed our climatetransition plan focusing on climate adaptationand mitigation and identified business
opportunities in these areas. Key focus areas
are decarbonized materials and energy,
circular solutions, and usage of smart devices
to increase resource and energy efficiency inboth the construction and operations phases.
We expect demand for sustainable andclimate-resilient solutions and products forthe built environment will continue to increase.
We also see opportunities in advancing ourdigital transformation. Technologies andtools, such as drones, robots, and image andvideo recognition, are already being tested on

I would like to thank our shareholders,customers, business partners and employees
for enabling our achievements over the past
year, and I look forward to continuing towork with you. A clear commercial direction,
financial strength, and committed andskilled people will empower us to deliver on
our strategy now and into the future.
Anders Danielsson
President & CEO

7.89 SEK
3.5%
ROCE – Project Development-3.7%
ROCE – Investment Properties-1.6%

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report

Annual and Sustainability Report 2023

Skanska’s ­targets
and outcome
Our targets reflect our ambition to remain anindustry leader – o­ perationally, financiallyand within sustainability.

10

Operating margin – Construction
Target≥3.5%

Outcome 2023

3.5%

Profitability in our Construction operations was strong, with robust
performance in the Nordics and strong delivery from our US operations.
Operating margin for 2023 was in line with our long-term target.
Order bookings were strong during the year and the order backlog
remained high.

%4

Target
3
2
1
0
2019

2020

2021

2022

2023

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Return on capital e­ mployed¹ – Project Development
Target≥10%

Outcome 2023

-4%

Performance in Project Development was impacted by weak property
markets, lower-than-normal sales volumes in most markets and impairment
charges resulting in a negative return on capital employed.

%
15

Target

10
5
0
-5
2019

2020

2021

2022

2023

Return on capital employed1 – Investment Properties
Target≥6%

Outcome 2023

-2%

Investment Properties was launched in 2022, targeting a portfolio of highquality office buildings in Sweden. Performance in 2023 was impacted by areduction of fair market values due to weak property markets. During the year,
the business stream acquired two office properties from our Commercial
Property Development business stream and at year-end, the portfolio consistedof five office properties with a total property value of SEK 5.1 billion.

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1 According to segment reporting.

%
15
10

Target

5
0
-5
2019

2020

2021

2022

2023

Contents

Annual and Sustainability Report 2023

11Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations

Adjusted net debt(-)/net cash(+)1
Limit

-10

Outcome 2023

SEK bn+10

SEK bnWe maintain a robust financial position and adjusted net
cash was SEK 10 billion at the end of 2023, compared to ouradjusted net debt limit of SEK -10 billion.

Sustainability report

15
10
5
0
-5

Limit

-10
2019

2020
2021
Return on equity

2022

2023

≥18%

3

300,0002

150,000

1-60%

Net-zero

Outcome 2023

6%

Weak property markets resulted in a return on equity outcome
in 2023, below our long-term target.

002015 2016 2017 2018 2019 2020 2021 2022 2023

Scope 1
Scope 2
Carbon intensity (tons CO₂e/SEK M revenue)%
30

Climate target – Skanska’s value chain emissions325
20

Target15
105Target 2030

-50%

Outcome 2023

-48%

0
2019

2020

2021

2022

Target 2045

Net-zero

Pay-out ratio
Outcome 2023

40–70% 70%
The Board of Directors proposes a dividend of SEK 5.50 (7.50)
per share, corresponding to a pay-out ratio of 70 percent.

Compared to 2020, we have reduced emissions in the value
chain by 48 percent. Fewer started and sold projects in our
Project Development streams explains the large reduction
in 2023. The outcome in a specific period will vary with thedevelopment activity in Project Development.

%
100
80
60

> Read more on page 49.

40

Tonnes CO₂e
1,200,000
1,000,000
800,000
600,000

2023

Pay-out ratio

400,000
200,000
2020

2021

2022

2023

Material
Waste and other
Use of sold products

Ton CO₂e
1 200 000
1 000 00020

800 000
600 000

0
2019

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Tonnes CO₂e/
SEK M revenue> Read more on page 49.

Return on equity2
Target450,000

Outcome 2023

Since 2015 we have reduced our own carbon emissions(scope 1 and 2) by 60 percent and improved our carbon
intensity to 1.03 from 2.60.

Remuneration report

Financial information

Target 2030

Target 2045

Corporate governanceRisk and opportunity management

Tonnes CO₂e

-70%

20

SEK bnClimate target – Skanska’s own emissions

2020

2021

2022

2023

400 000

1 Interest-bearing net receivables/net debt excluding restricted cash, lease liabilities and interest-bearing net pension liabilities.
200 000
2 According to segment reporting.
3 See definition and limitation on pages 67 and 78.
2020

2021

2022

2023

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations

Annual and Sustainability Report 2023

12

Global trends
For more than a century, we have delivered better housing,smarter offices and commercial spaces, and more resilient
infrastructure. Megatrends such as urbanization andincreased focus on low-carbon solutions are driving forcesin our business. Digitalization and smarter technologies
allow us to be more efficient and increase productivity.

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Urbanization and the reshaping of cities
Urbanization requires continued investments
in infrastructure, healthcare, housing, offices
and education. The need for infrastructure
renewal in the USA and Europe requires
stimulus in both regions, which in turnstrengthens the outlook in civil construction.
Demand for efficient and flexible transportation is increasing. Substantial investments arebeing made in mass transit, energy and water
systems and other civil infrastructure, as wellas in social infrastructure such as universities,
schools and hospitals.
We play an important role in building resilient
urban communities that are sustainable,
healthy and inclusive. Our diversification
across segments and markets enables us tocontribute to the reshaping of cities, ranging
from community-oriented residential areas,
flexible offices and social infrastructure tocomplex, large-scale infrastructure projects.

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Climate change and the need for transition
The built environment stands for around 40
percent of energy-related carbon emissions,according to the International Energy Agency(IEA). Climate change is and will be a key
business-defining factor in the coming decades.
There is a strong focus in our industry on
reducing carbon emissions.
It is also evident that many buildings andpublic spaces were not designed for the kindof environmental challenges we are experiencing,such as extreme weather conditions, energy
shortages and water scarcity. Climate change
has exposed a need to address and improvethe climate resilience of urban areas.

.500

.100

.400

R 050

.089

.360

1.00

0

Legislation across the USA and Europe are
increasingly being written with this in mind,
stimulating a transition to lower-emission
construction. This creates business
opportunities that allow us to contribute toclimate adaptation and mitigation. Severalof the key solutions that are needed to handle
the climate transition are within infrastructure
and buildings.

net-zero solutions for the built environment.
We see an increased need for climate
adaptation solutions to safeguard the built
environment against climate-related events.

Addressing climate change involves scaling
innovations in decarbonized construction
and digital solutions . Through strategic
partnerships, we collaborate to exchange
knowledge and insights, and to innovate

Improving performance using smarter
technologies
Smarter technologies allow us to rethink how
we work, from operations, compliance, safety
and communication, through to disclosureand finance. In procurement and design of
new projects, for example, a smarter use ofdigital environmental product declarations
opens the way for calculating and reportingthe carbon impact of projects. Ultimately,
implementing new technologies and tools
creates opportunities to increase productivity,
enhance cost efficiency and reduce carbon
emissions.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

IN FOCUS IIJA, USA

Investment act
strengthening US
infrastructure
The bipartisan Infrastructure Investment Jobs Act(IIJA) has underpinned a vital increase in infrastructure
investment across the United States since it was
signed in 2021. The legislation, at USD 1.2 trillion(SEK 12.5 trillion), is the largest infrastructure investment authorized in US history and represents anincrease of around 38 percent in funding comparedwith the years just before the IIJA was passed.

We operate in many US markets whose aging
infrastructure is in need of repair, replacement and upgrades to meet current demands.
These regions are also densely populated andrequire state-of-the-art infrastructure. We are
well positioned to act on the government in its
plan to upgrade the nation’s network of roads,
bridges and railways.
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13

The IIJA came at a crucial moment. The
Covid-19 pandemic added uncertainty to
infrastructure funding. Transport, traffic andtransit agencies rely on toll and passenger
revenue, and federal and state gas taxes, tocover operating expenses and future projects.
Declines in passenger numbers, plus social
distancing, staff shortages and other operational challenges also weighed on revenues.

The legislation secured funding for agencies
to plan long-term through guaranteed formulafunding, with additional funding also available
through competitive grants. It has also ­createdmore job opportunities in construction.
Funding is allocated to highways, bridges, rail,
ports and waterways, airports, waterworks,
broadband and other projects that boost thenation’s competitiveness and resilience.

Our geographic footprint and corecompetencies, combined with a consistentselective bidding strategy, position us for
success in the current market. Federal funding
is stable over the mid-term, and we continue tofoster strong relationships with our customers
and partners that allow us to win and deliveron contracts.

Contents

Annual and Sustainability Report 2023

14Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
I-405, Brickyard to SR 527 Improvement
Project, Seattle, Washington
Our construction of a dual express toll lanefrom the I-405/SR 522 interchange to the
I-405/SR 527 interchange in Washington
State will increase capacity, traffic flow andconnectivity, all of which will cut delays andcongestion.
Three new Stride bus rapid-transit stations,
including two elevated stations, form a core
part of the project. Construction of thestations will use an overhead conveyor
system to transport materials to the median,eliminating more than 1,750 truck trips thatwould otherwise interact with public traffic.
The project will target Envision Platinum
certification.

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Portal North Bridge, Kearny and Secaucus,
New Jersey
We are demolishing and replacing a bridgeover the Hackensack River between Kearny
and Secaucus, as part of a joint venture with
Traylor Brothers.
The existing century-old, two-track ‘movable’railroad swing-bridge is a consistent sourceof rail traffic disruption on the Northeast
Corridor, the busiest rail corridor in the USA.
The entire project includes a 1,115-meter-long(3,600-foot) approach span located on thewest side of the river, a 775-meter (2,540foot) approach span on the eastside of theriver and a 365-meter (1,200-foot) centerspan crossing directly over the HackensackRiver. Railroad embankment sections will
be constructed on both sides of the riverto support the new tracks, as well as theconstruction of a new bridge over the Newark/
Jersey City Turnpike.

JFK Airport Roadways Utilities and GTC,
Queens, New YorkWe have been appointed by the Port Authorityof New York and New Jersey to carry out the
USD 1.24 billion (SEK 14 billion) design andconstruction of its on-airport roadway transportation network, as part of a joint venturewith Halmar, at John F. Kennedy International
Airport.
The project will improve user connectivity andaccess to the air terminals through roadway
reconfiguration, installation of intuitive wayfinding and enhanced traffic technologies,
plus retaining walls and bridges.
The project also includes the design andconstruction of a modern Ground Transportation
Center, featuring a 1,950-space multilevelvehicle parking facility equipped with electricvehicle charging stations and a timber façade.

Portsmouth Marine Terminal. Staging
Port for Offshore Wind Power, Portsmouth
Virginia
We are redeveloping almost a quarter of the
116-hectare (287 acre) Portsmouth Marine
Terminal into a staging port for offshore wind
power generation.
The terminal features 1,078 meters (3,540
feet) of wharf and three berths. Sections of
the wharf are being demolished and replaced.
Existing concrete piles are being cut off at the
mudline and replaced with new concrete piles.
The uplands area is to be cleared, with theexisting pavement stripped to the base before
being replaced with geogrid used to reinforce
soils and similar materials.
Our team will install new power to support
wind turbine nacelles and high mast lighting,as well as stormwater system improvements
to support offshore wind operations.

This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

15

Our strategy
We have been shaping societies around the world for more than a century.
Our reputation as a trusted partner is built on our experience and knowledge.
Our Group strategy – our blueprint – is guiding us to create long-term value
for customers, shareholders and society.
Our strategy, and the way we conduct business,remains firmly grounded in our values. To drive
our business forward, we focus on four key
enablers that harness our strengths into longterm, sustainable business opportunities thatgenerate growth, customer success andlong-term value for our shareholders.
Reinforcing our competitive edge
We make the most of our strengths as abusiness: developing our people to theirfullest potential, deepening our knowledge
and foresight, and continuously improving

Strengths

Group overview

Annual and Sustainability Report 2023

Exceptional
teams

Enablers

Contents

Customer-firstmindsetperformance. Our strengths build on eachother, driving continuous progress andcommercial advantage. Together, they form
a solid foundation for sustainable business
opportunities, customer success andshareholder value.
Strengthening our value proposition
With a customer-first mindset, incorporating
our knowledge and expertise in close
collaboration with our customers, we
continuously improve our product offering andour commercial value proposition.

Leading knowledge
and foresight

Culture of continuous­improvement

Innovative
solutions

Outstanding
performance

Sustainable
impactEmpowered by our purpose and values
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To scale up innovations, we focus on
strengthening our leadership in sustainable
solutions. We are using our experienceand insights to strengthen our customer
offering. This includes harnessing data
and digitalization capabilities to increase
productivity and resource efficiency.

Creating long-termvalue for customers,
shareholders andsociety

Clear commercial direction to create value
Within each business stream, we haveclearly defined commercial directions tomaximize value creation and adapt our
products and services to market drivers,
industry and market trends as well as local
market characteristics and competition. Thisapproach allows us to deliver profitability andcreate long-term value. Read more about
each business stream’s commercial direction
on pages 24–38.
Managing risks and opportunities
To achieve our strategy, it is crucial wemanage the associated risks. Proactive andstructured risk management at all levels
increases our resilience to risks and enhances
our ability to capture opportunities. The
overall purpose of our risk management is toensure risk is managed systematically andefficiently, and that we set the right priorities
to help us achieve our business objectives
and goals. To read more about our risk
management, see pages 99–105.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

16

Skanska’s business model
Our business model is based on making the best use of financial and operational
synergies created in a large multinational business that operates across the value
chain. Synergies allow us to deliver on our strategy, drive our business forward togenerate value for our customers and shareholders over time.

Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We deliver knowledge and expertise along
the entire value chain, something that sets us
apart from many of our peers. Our four businessstreams cover property development (bothresidential and commercial), construction
operations in both the building and civil
segments, and long-term asset managementin Investment Properties. A diversified businessin terms of sectors, segments and geographies
provides stability to the Group.
Global reach and local understanding
Competence and knowledge transfer
between our business streams, combinedwith global reach and local understanding,
all reinforce our competitive advantage.

Free working
capitalStrong financial position creates flexibility
Another strength that sets us apart inour industry is our financial position. Our
Construction business has several thousand
projects that generate stable profit andpositive cash flow which can be invested in
the Property Development and Investment
Properties businesses. Growing Investment
Properties will provide the Group with anotherbusiness stream that generates stable cash
flow. Our financial strength, and the stability
that it brings, makes us a reliable business
partner and ensures that we own our own
decisions in all market scenarios.

Financialsynergies

Construction
OperatingmarginOperational
synergies
Total
shareholder return
Return on equity
Dividend policy

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Project Development
Investment Properties
Return on capital
employedContents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story

Annual and Sustainability Report 2023

17

IN FOCUS

People want tomake an impact

Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

A workplace where our people can develop lets us offer
our customers the best teams in the business. Therese
Tegner, Executive Vice President for Human Resources,
says our learning and development culture gives us acompetitive advantage in the job market.

Financial information“We have extensive opportunities forpeople to learn and develop within Skanska.
Building a career doesn’t have to be about
taking over your manager’s job.”
Therese Tegner is clear: in an international
company as diverse as Skanska, there
is no single path to career advancement
but rather a variety of routes to long-term
success.
“For many people, a dynamic CV is more
important than climbing a ladder. Our programs such as Skanska Scale and Skanska
Unlimited allow people to work in new areas
with other units and in other geographies,enriching their experience and strengthening our business. The way our teams mix
established and newer colleagues means
our people are learning from the best.

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Therese Tegner
Executive Vice President for Human Resources"I also know that the landmark projects wedevelop and build are attractive for people
who want to make a mark on their communities, and they look great on CVs.”
In an external ranking by Forbes Magazine,
Skanska was ranked as one of the World’s
Best Employers. “This was not something wesought, but rather was based on employees’
responses. It is a great tribute to the work wedo on leadership and culture, purpose andvalues. It’s hard work but it pays off.”
Our annual employee survey, Your Voice
Our Success (YVOS), also showed goodoverall results in 2023, with a high score in
the Excellent Leadership Index, and both
engagement and enablement up slightly
on 2022. Follow-up work allows each unit toidentify actions to improve its performanceand address any issues.
Competitive advantage
Therese says that being an attractive
employer is an advantage in a competitive
job market. That is why it is integrated into
the Group’s long-term approach. “We keep
doing proper workforce planning, ensuring
we are an attractive employer, that there is agood work-life balance wherever possible, andthat people can develop and work with coolprojects in great teams.”
The nature of our work at Skanska, shaping asustainable society for everyone, appeals to
many prospective employees who want theirwork to have a positive impact. “It is great
to be part of what we accomplish, helping
societies to prosper sustainably. This is thebiggest motivating factor for many.”

Maintaining an inclusive culture
Every unit works on maintaining an inclusive
leadership and culture, to ensure we canrecruit from the widest possible field ofcandidates. It also ensures that people can bethemselves and want to stay with us.
Market changes during 2023 led to an overall
drop in voluntary turnover levels. “People arelooking for more of the stability and breadth ofopportunity you get from a large, establishedcompany like Skanska,” Therese says.
In some markets, however, adjustments tostaffing levels were necessary in 2023 toensure long-term strength. “We need to adjust
the organization at times to keep the company
healthy, strong and stable. We are confident inour direction and need to ensure we can growagain when the time is right.”
A looming demographic shift poses a challenge
for the industry, Therese says, which is why
we work systematically with our employer
value proposition. “Statistics show that a large
proportion of construction workers will haveretired in ten years’ time, with the industry
facing competition from other sectors. The
broad variety of career paths available at
Skanska allows people to learn, grow and truly
make a difference.”
Competence focus areas for 2024
Focus areas for competence development
over the coming year include climate andsustainability, artificial intelligence, use ofrobotics and other advanced technology
including aspects such as digitalization. We
will also invest in leadership skills, change
management and leading in a changing world.

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy

Annual and Sustainability Report 2023

18

Our responsible
investment story

Business model
Our responsible investment story
Funding

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We are creating long-term value for our shareholders,customers and society at large. By using our global reachand the expertise gained by working across the value
chain, we deliver attractive and sustainable buildings
and infrastructure that contribute to a better society forcurrent and future generations.

The strength of our businessWith global experience, financial strength and local
expertise, we develop high-quality properties anddeliver complex construction projects. We prioritize
collaboration and understanding of the needs ofour customers and local communities to ensure astrong offering. We are maintaining solid profitability,
financial strength and diversification in our operations.
We are committed to creating a low-impact built
environment and driving positive change towards
construction with higher resource and energy
efficiency. Our 27,000 employees together with ourpartners create innovative, digital and sustainable
solutions for our customers.
Investing in Skanska

Download PDF for print

Contents

Annual and Sustainability Report 2023

19
Circularity
Renewable energy

Low-carbon materials

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Investing in Skanska
Digitalization

Electrification

Investing in Skanska makes you an owner of a global leader in project
development and construction. We benefit from long-term trends such asurbanization and the shift towards a more sustainable built environment.
We hold a solid financial position and our customer offering is strong,
integrating the entire value chain through our four business streams.

Energy+buildings

Optimized
designOperations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Global leader
We are a global leader in project
development and construction, operatingin stable home markets across the Nordics,
Europe and the USA. We benefit fromlong-term trends such as urbanization andthe transformation to a more sustainably
built environment, which supports demandfor our products and services over time.

Strong financial position
We are maintaining a solid financial
position. This makes us a reliable andattractive partner for customers, subcontractors, suppliers and other business
partners, and enables us to take action
on market opportunities when they arise.

Our business streams

Our sustainable impact

Customer offering
We have a unique offering, integrating
the entire value chain from project
development to construction and property
asset management. Together with a multinational footprint, this creates a strong
opportunity to learn and share knowledge
internally in order to stay relevant andattractive for our customers.

Creation of shareholder value
We generate shareholder value bybuilding a strong, high-performancecompany based on:• Stable performance and profit
generation in Construction• Developing the most attractive andsought-after commercial and residential
properties on the market• Generating a stable cash flow andlearning from active property asset
management

Construction
Page 24

Residential Development
Page 28

Commercial Property Development
Page 32

Responsibility
A responsible business forpeople and planet.
Page 60

Investment Properties
Page 36

Download PDF for print

ClimateTransformative solutions for a
low-carbon built environment.
Page 46

Resilience
Healthy, resilient places for all.
Page 54

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story
Funding

Operations
Sustainability report

Annual and Sustainability Report 2023

20

A strong financial position
supports capital commitments
A strong balance sheet makes us an attractive business partner. It enables
us to take on large construction projects, bring our own development
projects to the market at our own pace and capitalize on new business
opportunities.

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We have several funding programs –committed bank credit facilities as well as
market funding programs – which provide
good flexibility for temporary fluctuations
in liquidity and help to ensure long-term
financing.
Our central debt portfolio amounted to
SEK 8.8 billion at year-end, consisting of
SEK 4.6 billion in Medium-Term Notes (MTN)with an average maturity of 3.4 years andSEK 4.1 billion in bilateral loans with anaverage maturity of 2.7 years. Unutilized
credit facilities amounted to SEK 9.9 billion.
The central loan portfolio, including unutilized
credit facilities, had an average maturity of
3.4 years. At year-end, cash, cash equivalents
and committed unutilized credit facilities
amounted to SEK 27.8 billion, which ensuresthat we have sufficient financial capacity
to fulfill our capital commitments. Read
more about our funding in Note 6 on pages
134–142.

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All external funding is procured by a central
support function, Skanska Financial Services(SFS), which is responsible for managing
all external debt and for the Group’s cash
management.
In 2023, we procured revolving credit facilities
to a value of SEK 2.8 billion. Maturing longterm bilateral loans in USD and EUR wererefinanced and increased by USD 100 M.
Issuance of new green bonds
In 2023, we issued new green bonds
worth SEK 4.6 billion. The issue generated
substantial interest, attracting bids fromaround 40 investors. At the issuance on
November 15, the bond was divided into
three maturities: SEK 750 million in 2 years,
SEK 2.4 billion in 3 years and SEK 1.5 billion in
5 years. The bonds are listed on the Nasdaq
Sustainable Bond Market.

Green Bond Framework updated to support
journey towards net-zero
During 2023, we updated our Green Bond
Framework to include criteria from theEU taxonomy for sustainable activities andbroaden the scope to include additional
activities that are needed in our journey
towards our long-term climate targets. The
framework is aligned with the 2021 ICMA
Green Bond Principles. S&P Global Ratings
has provided a second opinion with Medium
Green shading. Svenska Handelsbanken
acted as adviser in updating the framework.
We established our first Green Bond
­Framework in 2014.

Maturity structure
SEK M
2,500
2,000
1,500
1,000
500
0
2024 2025 2026 2027 2028 2029 2030

Bonds (MTN)

Bilateral loans

Central funding, SEK 8.8 bn

Full details on our Green Bond Framework andthe Second Party Opinion can be found here:group.skanska.com/investors/funding/skanska-financial-services-ab/

Bonds (MTN), 53%
Bilateral loans, 47%

Contents

Group overview
This is Skanska
2023 in brief
CEO statement
Targets and outcome
Global trends
Strategy
Business model
Our responsible investment story

Annual and Sustainability Report 2023

IN FOCUS Portland International Airport, Oregon, USA

A mass-timbermarvelFunding

Operations
Sustainability report
Corporate governance

Portland International Airport authorities
had a challenge. With passenger numbers
trending upwards, they needed to create
more space within the airport’s core for activities such as security, ticketing and retail.
However, with millions of passengers passing
through annually, disrupting day-to-day
operations wasn’t an option.
A solution came in the form of an ambitious
concept to build a huge 37,000 square meter(almost 400,000 square foot) roof overthe existing facilities, doubling floor space
while allowing airport activities to continue
uninterrupted during construction.
Early on in the timeline, a Skanska joint
venture with Portland firm Hoffman was
appointed general contractor/construction
manager on the project, known as TCORE.
Under the project model, we contributed tothe discussion around roof materials andhow we could carry out the extraordinary
logistics operation required. The decision
was taken to build the roof structure predominantly from mass timber, a material thatwould result in lower carbon emissions thansteel and pay tribute to the timber industry
around Portland.

Remuneration report
Risk and opportunity management
Financial information

Download PDF for print

21

Airports can be stressful. But travelers passing throughthe soon-to-be-completed Portland International Airport
upgrade in Oregon, USA, can expect a different experience.
An extraordinary mass-timber roof produced by a Skanska
joint venture delivers a sense of tranquility using locallysourced timber.

Extraordinary structure
Under a plan devised by our joint venture,
the roof was prefabricated at a site about
1.5 kilometer (one mile) away, on the far sideof the runway, and transferred carefully insections. Some 790,000 meter of timberboard (2.6 million feet) was converted toglued, laminated timber products, known
as glulam, which were used to create 27
meter-long curved members. These wereused to form 18 roof modules, which weresuccessfully installed over the existing
airport core. This extraordinary structure is
supported by 34 steel columns, with the roof

designed to move in one fixed plane in theevent of a major seismic event. The project
has been delivered without major disruption
to airport operation.
A reduction in carbon emissions was a key
aspect of the approach. By limiting the use ofsteel only to where necessary and selecting
mass timber as the principal material, theembodied carbon was reduced by 3,900
metric tons compared with calculations foran all-steel structure.
Locally sourced timber
All the timber used was sourced from either
Portland’s home state of Oregon or nearby
Washington State. A lot of effort went into
ensuring the wood used in the roof, predominantly Douglas fir, came from a diverse rangeof working (commercial) forests, including
family-owned forests, publicly owned lands
and indigenous-owned lands. Timbers fromthe different sources were kept separate
at the sawmill so that provenance could betracked.
We also used an innovative form of sheathing,known as mass plywood, on top of the roof.
Developed in Oregon, the product is madefrom 2 millimeter thick veneers which areformed into 63 millimeter thick plywood
panels that can be cut and shaped to fit
curved surfaces.
Once we complete the final stages of the
airport’s new core, it won’t just be the outstanding timber roof that provides travelers
with a sense of calm. ‘Biophilic’ design
features that mimic nature, such as living
groves of trees, are intended to give people
the feeling they are walking through a forest
rather than rushing for a plane.

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

Businessstreams

Risk and opportunity management

Download PDF for print

Purple Line Los Angeles USA

Financial information

22

Contents

Group overview
Operations

Annual and Sustainability Report 2023

23

Our business streams

Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governanceOur operations are focused in four business streams: Construction,
Residential Development, Commercial Property Development andInvestment Properties. C­ ompetence and knowledge transfer acrossbusiness streams and home markets reinforces our competitive
advantage and creates synergies for our o­ perations.

Remuneration report
Risk and opportunity management
Financial information

Download PDF for print

Construction

Residential
Development

Commercial Property­Development

Investment
Properties

Sustainable buildings and infrastructure.

Attractive homes across our markets.

Healthy spaces that boost business.

Managing high-quality sustainable real estate.

Contents

Group overview
Operations
Business streams
Construction

Annual and Sustainability Report 2023

24

Construction

Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

We build sustainable buildings and infrastructure, shaping
inclusive, healthy spaces for working, living and connecting.
The projects we deliver range from public and commercial
premises, housing and offices to infrastructure for travel
and transport.

Download PDF for print

Project Oas Malmö Sweden

Financial information

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

25

Construction
The Construction business stream had astrong year, with robust operating margin anda solid order intake. Operating margin was
3.5 percent (3.7), in line with our long-termtarget, with robust performance in the Nordics
and strong delivery from our US operations.
Performance 2023
Revenue in the Construction business streamincreased by 3 percent and amounted to
SEK 160.6 billion (156.0); adjusted for currency
effects the revenue was unchanged.
Operating income decreased by 2 percent
and amounted to SEK 5,632 M (5,770);

adjusted for currency effects, operating
income decreased by 5 percent. Orderbookings were solid and amounted to
SEK 165.8 billion (162.7); adjusted for currency
effects, order bookings increased 1 percent,mainly driven by strong order bookings in the
USA and Norway. The order backlog remained
high with a good book-to-build ratio of
103 percent for the year.
Market outlook 2024
Our market view for the construction businessis defined by a strong outlook for the US
market and a more cautious assessment of

Key data
SEK M (unless otherwise stated)
Revenue
Operating income
Operating margin, %Free working capital, SEK bn
Operating cash flow
Order bookings, SEK bn
Order backlog, SEK bn
Number of employees

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the European and the Nordic markets. The
building segment in Europe and the Nordics
is characterized by lower activity than normal
and increased competition, while the civil
segment is mostly stable. Our US operations
are well positioned within segments andsectors that are expected to continue to staystrong. Federal funding programs support
important investments in infrastructure, andactivity in many sectors of the building market
remains strong.

Commercial direction• Selective bidding, prioritizing profits
before volume• Grow responsibly• Seize opportunities in the transition
to a sustainably built environment• Increase our strategic focus on
digitalization and new technology to
improve productivity• Sharpen our offering and solutions tomeet customer needs of tomorrow

Revenue, total SEK 161 bn
2023
160,636
5,632
3.5
29.1
6,653
165.8
229.6
25,8262022
156,004
5,770
3.7
28.9
4,871
162.7
229.8
26,8922021
132,587
5,013
3.8
29.1
7,022
153.6
207.0
28,557

2020
140,483
3,528
2.5
25.7
6,451
149.8
178.9
30,944

2019
159,579
3,772
2.4
26.4
4,849
145.8
185.4
33,225Countries: Sweden, Norway,
Finland, Poland, Czechia,
Slovakia, Hungary, Romania,
UK, USA

47%

36%

17%

USA

Nordics

EuropeContents

Group overview

Annual and Sustainability Report 2023

26

Order backlog, total SEK 230 bn

Order backlog, total SEK 230 bn

Value creation in Construction

Operations
Construction – our largest business stream
in terms of revenue and people – builds
and renovates buildings, industrial facilities,
infrastructure and homes. We hold abalanced portfolio of construction projects
with operations in a broad array of segments,
sectors and geographies. We have a diverse
customer base with both public and private
customers.

Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report

Type of product
Civil construction, 50%
Building construction, non-residential, 46%
Building construction, residential, 3%Service1, 1%

Project size
SEK > 1,000 M, 74%
SEK 501 – 1,000 M, 11%
SEK 0 – 500 M, 15%In keeping with our business model, Construction also takes on contracting assignments forour own Project Development operations – acollaboration that generates synergies, anddrives innovative solutions and productdevelopment within the Group.

Risk and opportunity management
Financial information

Customer structure%
100

Selective bidding, a clear focus on commercial management and cost efficiency are themain drivers for maintaining solid profitability.
We aim to further improve operationaland resource efficiencies, safety and thesustainable solutions in our customer offering.
To do this, we share knowledge and expertise,develop innovative solutions and explore thebenefits of digitalization.

80
60
40

Customer structure
Public customer
Private customer

20
0

Building
Civil
construction, construction
non-residential

Residential

Service1

Revenue and operating margin
SEK bn

%

180

6

160

5

140

4

120
100

3

80

2

60
40

1

20
0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

Download PDF for print

2020

2021

1 Facilities management or maintenance contract.

2022

2023

0

R
 evenue, SEK bn,
rolling 12 monthsO perating margin, %,rolling 12 months

Products and services:• Social infrastructure such as schools,
hospitals, healthcare and life science• Mass transit such as rail, subways andairports• Infrastructure such as highways, bridges
and tunnels• Offices• HomesMarket drivers:• GDP growth• Public investments in infrastructure• Urbanization
Industry/market trends:• Focus on climate and safeguarding theenvironment, and increasing awarenessof the need to build with reduced climate
impact• Digitalization and technology development
to improve productivity and increase
efficiency• Increased industrialization and automation
Market characteristics/competition:
Nordics: Consolidated markets with a small
number of large domestic players in eachcountry
Europe: Highly fragmented market with fierce
competition from domestic and international
players
USA: Very fragmented market with strong
local and national competition.

Contents

Annual and Sustainability Report 2023

27

IN FOCUS L300: Lynnwood Link Extension, Seattle, USA

Operations

A smoother journey
for commuters –and fishBusiness streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Nobody likes sitting in traffic jams. In Seattle, Washington
State in the USA, we’re helping to deliver a light rail extension that will take cars off the road with benefits for bothcommuters and the environment.
When residents of urban centers on Seattle’s
northern fringe need to travel downtown, thetrip typically involves a car journey on congested highways. Growing populations andlimited public transport options mean thatgoing to work, school, a ball game, or even the
supermarket in Seattle can be a frustrating
hour-long crawl in traffic.

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L300 Washington State USA

Group overview

of Seattle. The project, for customer Sound
Transit, is known as the L300: Lynnwood
Link Extension and is being delivered
jointly by Skanska USA Civil and Skanska
USA Building under a general contractor/
construction manager model. Although weare not responsible for the overall design,
the model empowered us to participate as
an adviser from early in the design process.

That’s all about to change when a new lightrail extension, completed in part by Skanska,
opens in 2024. Linking to the city’s existing
light rail network at the Northgate Transit Center, the project promises to deliver passengers
from Lynnwood in the north to Westlake in
Seattle’s downtown in around 28 minutes.

Navigating challenges
In addition to constructing 3.7 kilometersof elevated guideway and 2.3 kilometers at
ground level, we built two elevated stations
and a five-story parking garage at the
Lynnwood Transit Center.

We are responsible for a section of the projectdelivering 6 kilometers (3.8 miles) of light rail
guideway that will link the cities of Shoreline,
Mountlake Terrace and Lynnwood to the northWork on the L300 project commenced
in 2019 and substantial completion wasachieved in late 2023. The project is remarkable for the logistical challenges solved,

the close collaboration with the customer
and the focus on the environment. One of thebiggest logistical challenges was constructing
a section of the guideway over the extremely
busy Interstate 5 highway running north from
Seattle.
Through careful pre-planning and engineering,
we were able to erect the required supporting
framework over two weekend closures. Oncework was completed, the framework wasremoved over the same period – far less timethan had been allocated by the customer.
Working closely with the customer also led tomany positive environmental outcomes forbiodiversity. Washington State is known for its
fishing and streams, but development of theroad network over the years had led to manyfish habitats being choked off.

Part of our remit was to rehabilitate andopen waterways, and enlarge passages
under the rails that allow salmon to spawn
upstream.
Smaller footprint
Additionally, the customer’s designer
originally proposed using a temporary
embankment to construct the light rail guideway through the sensitive McAleer Creek
wetland. Looking to reduce impacts, we
devised a soldier pile method that allowed
work to be carried out efficiently with a muchsmaller environmental footprint.
The L300: Lynnwood Link Extension createda state-of-the-art public transit solution for
the greater Puget Sound region, with collaborative construction solutions to get the job
done safely, on-time and within budget.

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report

Annual and Sustainability Report 2023

28

Residential
Development

Corporate governanceRisk and opportunity management
Financial information

Download PDF for print

We develop and build attractive, inclusive and energy-­
efficient homes, with a focus on shaping homes and urbanneighborhoods where people can meet and connect.

Urbani Gothenburg Sweden

Remuneration reportContents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

29

Residential Development
Weaker property markets have impacted
performance for the year, with lower-thannormal sales volumes in all markets except inCentral Europe.
Performance 2023
Revenue amounted to SEK 5,013 M (8,751).
Homebuyers remain hesitant followinginterest rate rises and overall macroeconomic
uncertainty. Our Central European operations
were stable and delivered healthy results forthe year, while our other operations adapt tolower volumes. Operating income amounted
to SEK -1,262 M (891). Property asset andgoodwill impairment charges totaling SEK -1.1
billion negatively impacted the result.

In 2023, the number of sold homes was 1,136(2,052) and construction started on 868
homes (2,805). At the end of the year, 4,341
homes were under construction, of which 52
percent were sold. The number of completed
unsold homes was 549, of which unsold
homes in BoKlok totaled 275. Sales activities
target completed homes or homes nearcompletion as buyer interest is focused onhomes that are ready to move into, allowing
them to buy and sell in the same market.
Market outlook 2024
Activity in the Nordic housing market has
been low in 2023. We expect market activity
to remain subdued as homebuyers adapt

Key data¹
SEK M (unless otherwise stated)
Revenue
Operating income
Operating margin, %Investments
Divestments
Operating cash flow from business
operations2
Capital employed, average, SEK bn
Return on capital employed3, %Homes started
Homes soldNumber of employees

to higher costs of living following increased
interest rates and inflation. Interest-rate cuts
over the coming 12 months could however
stimulate the market. For Central Europe, themarket is expected to remain stable with solid
activity among homebuyers.

• Focus on sales• Reduce sales and administration
costs to adapt to market conditions• Selected project starts in rightlocations• High focus on capital efficiency andcapital employed• Look for cost reduction synergies
with Construction business stream• Further develop concepts aroundenergy efficient and sustainable
residential projects

Revenue, total SEK 5 bn
2023
5,013
-1,262-25.2-9,038
11,442

2022
8,751
891
10.2
-10,615
9,349

2021
13,351
1,866
14.0-10,296
10,0232020
13,070
1,543
11.8-10,420
11,7102019
12,483
1,195
9.6-9,437
11,793

1,296
14.4
-7.0
868
1,136
524

-1,540
16.3
6.8
2,805
2,052
565

1,198
13.0
14.2
4,047
3,750
564

164
13.6
12.8
2,977
3,316
571

2,707
13.0
9.8
2,992
3,436
548

1 Starting 2023, all residential rental projects are reported in the Commercial Property Development stream.
Comparable figures for 2021–2022 have been restated to reflect this reallocation.
2 Before taxes, financing activities and dividends.
3 A definition is provided in Note 43.

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Commercial direction

Countries: Sweden, Norway,
Finland, Poland, Czechia, UK

65%

35%

Nordics

EuropeContents

Group overview

Annual and Sustainability Report 2023

30

Residential Development

Value creation in Residential Development

Homes under construction and unsold completed

Our Residential Development business buys
land, takes it through design and zoning, anddevelops and builds attractive and energyefficient homes. We create homes andresidential neighborhoods that promote wellbeing and strong communities. Our business
units within Residential Development are
responsible for planning and selling thehomes, while the construction assignments
are performed by our Construction business
units in each respective market.

Industry/market trends:• Increased interest in energy efficiency,
sustainability, and timber for building• Digital and technology development toimprove efficiency in construction andoperation

We operate in the Nordic countries Sweden,
Finland and Norway. In Europe we haveoperations in Poland and Czechia. We also
have a small start-up business in the UK for
the BoKlok concept. BoKlok, a residential
housing concept jointly owned by Skanska
and IKEA, builds single and multifamily
homes with attractive design, function andquality for a broad customer base.

UK: Market characterized by large domestic
players. Limited use of modular construction

Operations
Business streams
Construction
Residential Development
Commercial Property Development

Homes
8,000

100

Investment Properties

80

6,000

Sustainability report

60
4,000

Corporate governance
Remuneration report

40
2,000
0

Risk and opportunity management20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

2020

2021

2022

0

Sold under construction
Unsold under construction
Unsold completed
Sales rate, %2023

Financial information
Homes sold and started
Homes
5,000
4,000
3,000
2,000
1,000
0

Sold, rolling 12 months
Started, rolling 12 months

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

2020

2021

2022

2023

Revenue and operating margin
SEK bn
18

20

15

10

12

0

9
-10

6

-20

3
0

Download PDF for print

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

2020

2021

2022

2023

-30

R
 evenue, SEK bn,
rolling 12 monthsO perating margin, %,rolling 12 months

Products and services:• Multifamily and single homes, either
owner-occupied or for housing
associations
Market drivers:• Household finances and consumer
confidence• Urbanization and shortage of housing• Demand for affordable housing• Increased interest in energy-smart andsustainable buildings• Demand for prime locations and productofferings

Market characteristics/competition:
Nordics: Market characterized by bothnational and local players, with fierce
competition

Central Europe: Fragmented market in­Poland with many domestic players andfierce competition. In Czechia, the market ischaracterized by several local players.

Contents

Annual and Sustainability Report 2023

31

IN FOCUS Powerhouse Lade, Trondheim, Norway

Operations

Turning homes
into Powerhouses

Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Just 300 kilometers south of the Arctic Circle, Trondheim
in Norway is at the forefront of an energy revolution.
With Powerhouse Lade, we are expanding the successful Powerhouse concept into energy-positive homes.
Phase 1 of the development features 97
energy-positive apartments, which willproduce more energy than they consume overtheir expected lifetime of 60 years. ”Applying
a carbon budget during construction keeps
their carbon footprints to a minimum,” says
Kim Bundgård, Residential Project Manager
with Skanska Norway.
Powerhouse began in 2011 as a collaboration
between five companies including Skanska.
The four Powerhouse buildings produced
since then have been commercial, andinclude the landmark Powerhouse Brattørkaia
in Trondheim. By the end of 2023, 82 percentof the apartments at Powerhouse Lade were
sold, ahead of completion in spring 2024.

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Powerhouse Lade Trondheim Norway

Group overview

Careful selection of materials
The carbon budget includes emissions
from materials, construction, the complex’s
operating life, and eventual demolition anddisposal. Emissions are tied closely to energy
consumption, and the project uses innovative
features and approaches to reduce both.

To cut carbon in construction, less steel
has been used, and roof and wall insulation
has been selected to minimize the carbon
footprint. Low-carbon concrete has been usedthroughout, including one type with emissions
60 percent lower than the Norwegian industry
reference standard. Overall, the target is a
65 percent reduction in carbon emissions
compared with the reference standard.
On the energy side, the complex has been
designed both to generate electricity and tobe as energy-efficient as possible. It uses heatpumps and energy sources including thermal
wells, which extract natural thermal energy
from the ground, and both solar and solarhybrid panels. As well as generating electricity,
solar-hybrid panels also warm water for use in
the heating system.
The cool climate in Trondheim actually improves the utilization of solar energy, with lower
temperatures increasing thermal efficiency.
Most of the year, the solar panels generate
electricity, with the surplus sold back to thegrid. The complex is forecast to generate anexcess of 5-6 kWh per square meter over a
year, improving predictability in energy costs.
Optimizing every part of the system
In winter, heat is fed from the thermal wells tothe heat pumps. LowEx, an innovative system
stemming from Skanska-led research, provides
a high-efficiency thermal energy supply.
It does this by optimizing every part of thesystem, from the thermal wells to underfloor
heating, to provide the necessary warmthusing water at as low a temperature as possible. Wood flooring with lower-than-normal
thermal resistance is glued to the concrete
below, to allow heat to radiate more easily.
Other features encourage energy saving:an app shows residents how much they areusing, while a switch near the front door
turns off all lighting and sets the ventilation
to minimum. A monitor at the entrance toeach building also displays production andconsumption levels.
Why has it taken so long to develop Powerhouse homes, when the offices have beena success for years? Because it is harder topredict how people use energy at home: howoften they open the fridge, what temperature
they want in the shower, whether they turnoff the lights. By encouraging better useof energy, and with their energy-efficientdesign and features, these new Powerhousehomes set a new standard in residential
development, and are guiding the way to
net-zero living.

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

Annual and Sustainability Report 2023

32

Commercial
Property
Development

Financial information

Download PDF for print

Skanska HQ Stockholm Sweden

We shape sustainable and energy-efficient places thatcreate a positive impact for people and society, where
people can live, work and connect.

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

33

Commercial Property Development
In 2023, fewer properties were divested
compared to previous years following
weak markets. Leasing strengthened,
which is important to prepare properties
for divestment once the market activity
comes back.

asset impairments of SEK -1.7 billion due toweaker property markets. During the year,
new leases were signed for 213,000 square
meters (146,000), strengthened by improved
activity in Central Europe.

Performance 2023
Divestments worth SEK 4.5 billion (13.6) weremade in 2023, of which SEK 1.5 billion wereto our own Investment Properties businessstream. Revenue amounted to SEK 5,331 M(14,276). Operating income amounted to
SEK -1,365 M (3,023), including gains fromproperty divestments totaling SEK 1,014 M(3,839). Operating income includes property

By the end of the year, we had 23 ongoingprojects with a leasable area of 499,000
square meters, of which 17 were commercial
office properties and six were residential
rental. In 2023, we started five projects. The
portfolio of completed projects includes
22 properties with a total leasable area of
406,000 square meters. The portfolio was
74 percent leased.

Key data1
SEK M (unless otherwise stated)
Revenue
Operating income
of which, gains from divestments
of properties2

Commercial direction• Focus on leasing• Capital efficiency and active
divestment strategy• Selective project starts• Develop future pipeline• Increased diversification of asset
types• Strong customer offering including
sustainability and innovation• Capture synergies with Investment
Properties

Revenue, total SEK 5.3 bn
2023
5,331
-1,3652022
14,276
3,023

2021
12,1283,378

2020
14,9833,897

2019
17,850
3,287
4,275

1,014

3,839

4,079

4,750

2 Additional gains included in Eliminations were

108

112

239

359

240

Investments
Divestments
Operating cash flow from business
operations3
Capital employed, SEK bn
Return on capital employed, %4
Number of employees-10,668
7,999-12,294
14,389-8,536
10,704-9,777
16,988-12,946
13,713-3,705
40.8
-2.6
428

1,267
38.5
8.7
437

1,688
34.1
10.8
449

5,281
30.9
11.9
445

1,063
34.5
10.5
427

1 Starting 2023, all residential rental projects are reported in the Commercial Property Development stream.
Comparable figures for 2021–2022 have been restated to reflect this reallocation.
3 Before taxes, financial activities and dividends.
4 A definition is provided in Note 43.

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Market outlook 2024
The real estate investor market has been
hesitant. Activity is expected to remain lower
than historic averages as the market adapts
to a higher interest rate environment. During2023, leasing market activity has increasedin Central Europe, where a gap in supply
for new-built offices in attractive locations
has started to emerge. The Nordic market isstable while the US continues to observe alower return-to-office rate. Flight to quality
is a clear trend supporting demand fornew-built offices. Tenants are focusing on
flexible, sustainable premises with attractive
amenities and in good locations that help
attract and retain employees.

Countries: Sweden, Norway,
Finland, Denmark, Poland, Czechia,
Hungary, Romania, USA

18%

55%

27%

USA

Nordics

EuropeContents

Group overview

Annual and Sustainability Report 2023

34

Commercial Property Development

Value creation in Commercial Property Development

Operations
Business streams
Construction

Capital employed, total SEK 41 bn

Leasing, total 213,000 sq m

Residential Development
Commercial Property Development
Geographic area
Nordics, 33%
Europe, 23%
USA, 44%

Investment Properties

Sustainability report

Geographic area
Nordics, 55%
Europe, 42%
USA, 3%

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Unrealized and realized gains
SEK bn14,00012,00010,000
8,000
6,000
4,000
2,000
0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

2020

2021

2022

Unrealized gains:
Land
Ongoing projects
Completed projects
	Realized gains, rolling
12 months

2023

Revenue and earnings from property divestments
SEK bn25,00020,00015,00010,0005,000
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019

Download PDF for print

2020

2021

2022

2023

R
 evenue from divestments,
rolling 12 months
Operating income fromdivestments, rolling 12 months

Commercial Property Development initiates,
develops, leases and divests commercial
and residential rental properties built by our
Construction business stream. We focus onsustainable, modern premises where people
can work and connect.

Market drivers:• Economic growth• Urbanization• Increased demand for attractive
workplaces in core locations• Sustainability

Our capacity to invest in new land is key. Our
local footprint allows us to identify areas withstrong development potential. We develop
dynamic neighborhoods by investing in anddeveloping mixed areas with both workspaces
and high-quality residential properties.

Industry/market trends:• Flight to quaility – increased interest inmodern, sustainable and flexible premises
with a focus on wellness and amenities• Continued polarization between highly
attractive offices and less modern stock,both on leasing and investor markets• Tenants demand increased flexibility inproduct and leasing terms

Our portfolio consist of offices, residental
rentals, logistics and life-science. We are
gradually increasing the diversification of ourportfolio by increasing the share of residential
rental properties in the USA and Denmark andlife-science properties in the USA.
Products and services:• Offices• Residential rental• Life science in the USA• Logistics and other commercial ware­houses in Sweden

Market characteristics/competition:
Nordics: All Nordic markets are mature.
Competition is mostly local
Central Europe: Mainly local competition,
targeting capitals and Poland’s largest
regional cities
USA: Mature markets, both local and national
competition.

Contents

Annual and Sustainability Report 2023

35

Group overview

IN FOCUS H2Offices, Budapest, Hungary

Operations

Business hub more than an officeBusiness streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

Modern offices need to be more than just a place to work.
They need to be attractive meeting places that consider
both the well-being of occupants and the impact they haveon the environment. In Hungary, our H2Offices development
has found commercial success by doing just that.

Financial information

When we acquired the site for a major officedevelopment in Budapest, we became only
the second owners of the land in recorded
history. The location in the popular Váci
Corridor had been owned by the Budapest
Water Authority since the 1700s, first as aworkshop and a pumping station and thenlater as its headquarters.

H2Offices Budapest Hungary

It seemed only fitting then that our new development – which will feature 5,000 square
meters of gardens with ponds and waterfeatures – should have a name referencing
water. The name H2Offices was chosen.
Phase 1 divested
The H2Offices complex is being delivered
across three phases and will provide 67,000
square meters of space over three buildings.
Construction on Phase 1 of the project wascommenced in 2020 and the building opened
for tenants in February 2023. It provides nearly
26,000 square meters (280,000 square feet)of space over eight above-ground floors andthree underground parking levels.
In September 2023, we divested Phase 1 to
ERSTE Open-Ended Real Estate Investment
Fund for SEK 1.2 billion, exceeding market
expectations. Just after divestment, thebuilding boasted an occupancy rate of 81
percent.

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Both Phase 1 and the overall development are
remarkable for their emphasis on the tenant
experience, environmental credentials andhigh-quality materials and execution.

A sophisticated energy management system
helps minimize energy and heat consumption.
Fresh air is supplied on demand and regulated
by CO₂ sensors that ensure air is pumped
only where it’s needed. A similar approach
minimizes the unnecessary use of lighting.
We put a lot of thought into the experienceof tenants not just while at work, but while
commuting to the office and taking breaks.
The building has a double-height Scandinavianinspired lobby and is located just a few steps
away from the subway station. Facilities suchas bike storage, lockers and showers encouragesustainable commuting, and chargers areavailable for electric cars and e-bikes.
The rooftop terrace provides a running
track surrounded by greenery and withbreathtaking views across Budapest.
Aligned with EU taxonomy
Phase 1 is aligned with the EU taxonomy,
and received LEED Platinum Core and Shellv4 certification, with the highest score yet in
Hungary. It is aiming for WELL Core & Shell v2
and WELL Health & Safety certifications. It
also achieved Access4You Gold certification.
The project was awarded Green Building of
the Year in Budapest’s property development
awards and also won Most Sustainable
Building at the International Real Estate
Federation FIABCI awards for 2023.

Contents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report

Annual and Sustainability Report 2023

36

Investment
Properties

Corporate governanceRisk and opportunity management
Financial information

Download PDF for print

We are building up and actively managing a portfolioof high-quality Swedish office properties with highenvironmental standards in attractive locations.

Sthlm04 Stockholm Sweden

Remuneration reportContents

Group overview
Operations
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

37

Investment Properties
Investment Properties acquired two officeproperties with a value totaling SEK 1.6 billion
during the year, Sthlm04 in Stockholm andHyllie Terrass in Malmö. The properties are,on average, leased to 87 percent and haveachieved LEED Platinum, the highest level ofthe LEED sustainability certification.
Performance 2023
Revenue amounted to SEK 186 M (40).
Operating income amounted to SEK -62 M (140),
impacted by changes in fair market values of

SEK -190 M due to weaker property markets.
Average valuation yield in the portfolio at
year-end was 4.5 percent. At the end of theyear, the portfolio held five high-quality officeproperties with a property value totaling
SEK 5.1 billion. Net leasing was SEK 16 M.
The economic occupancy rate in the portfolio
remained high at 91 percent.

stronger demand for top-quality space inbuildings with high sustainability standards
compared to older stock. Tenants areprioritizing attractive locations, flexibility andmove-in-ready offices. The leasing market
remains competitive, but rents in Sweden’s
three largest cities are expected to remain
mostly stable.

Market outlook 2024
For the Swedish office market, occupierdemand remains polarized. We observe

Commercial direction• Continue to grow the portfolio,
targeting a total value of
SEK 12–18 billion• Active asset management• Future value generation• Sustainability and innovation
in focus• Capture synergies with Commercial
Property Development

Risk and opportunity management
Financial information

Key data¹
SEK M (unless otherwise stated)
Revenue
Operating net
Operating income
Investments
Divestments
Capital employed, average, SEK bn
Property value
Return on capital employed, %2
Net leasing
Economic occupancy rate, %2
Surplus ratio, %2

2023
186
137
-62
-1,575
0
5,076
5,141
-1.6
16
91
74

1 Investment Properties business stream was launched in 2022.
2 A definition is provided in Note 43.

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20221
40
30
140
-3,668
0
3,733
3,758
13.6
0
86
75

Properties
Malmö
Stockholm
Total

Leasablearea, sq m
38,54342,96281,505

Annual rental
value SEK M
134
187
321

Read more about Investment Properties in Note 40.

Stockholm
Gothenburg

Malmö

Economic
occupancy rate, %
92
91
91

Property
value SEK M
2,095
3,046
5,141

Environmental
certification, %
100
100
100

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Annual and Sustainability Report 2023

38

Group overview
Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Sthlm01 Stockholm Sweden

Operations

Value creation in Investment Properties
We launched the Investment Properties
business stream in 2022 with the aim ofproviding stable cash flows and creating value
through long-term asset management ofSkanska-developed office properties.

to the areas we build. This is important inour dialogs with key stakeholders, such as
municipalities and other public entities, as we
explore new areas of land and prospects for
project development.

Some of the properties developed by Commercial Property Development will be divested
to Investment Properties. Internal transfer isdetermined on a property by property basis
when the project is ready for divestment from
Commercial Property Development. Internaltransfer requires that the property fulfills a
set number of criteria. Investment Properties
will seek to acquire multi-tenant officeprojects that are at least 80 percent leased, in
attractive locations and with the highest levelsof sustainability certification. Our aim is toestablish and own a portfolio of quality assets
in prime locations in Stockholm, Gothenburg
and Malmö, creating an additional source ofstable cash flow from rental income and value
increase over time. Managing a top-quality
portfolio allows us to test innovations that will
strengthen our competitiveness as a Group.

As a real estate investor, we broaden our business scope, improving our customer offeringand attractiveness as a brand.

With Investment Properties, the Group plays
a more active role in the whole value chain,
and will be a long-term partner for local
municipalities through our solid commitment

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Market drivers:• Economic growth• Urbanization• Increased demand for attractive
workplaces in core locations• Sustainability
Industry/market trends:• Increased interest in modern, sustainable
and flexible premises with an increased
focus on wellness and amenities• Continued polarization between highly
attractive offices and less modern stock,both on leasing and investor markets• Tenants demand increased flexibility inproduct and leasing terms
Market characteristics/competition:
Competition is mostly local.

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Annual and Sustainability Report 2023

39

IN FOCUS Hyllie Terrass, Malmö, Sweden

Operations

Combining forces to
cut climate impact

Business streams
Construction
Residential Development
Commercial Property Development
Investment Properties

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

To deliver our industry-leading office building Hyllie Terrass
in Sweden, we sought out individuals and businesses whoshared our vision for creating more sustainable and livablecommercial spaces.
How do you create one of the mostsustainable office buildings in Sweden? For
the Skanska team behind the Hyllie Terrass
development in Malmö, a key part of theprocess was analyzing the materials needed
for construction – and pinpointing the contributors to embodied carbon. They then sourced
cost-effective, low-carbon alternatives.
The approach has paid off. The EU
taxonomy-aligned development is aiming
for LEED Platinum certification and hasreceived pre-certification – and is aiming
for full certification – under the Sweden
Green Building Council’s pioneering NollCO2
scheme. NollCO2 certification requires thatthe climate impact of a building’s entire life
cycle be accounted for and balanced withproduction of renewable energy over thebuilding’s lifetime.

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Hyllie Terrass Malmö SwedenGroup overview

Opened in 2023, Hyllie Terrass features
14,000 square meters (150,000 square feet)of leasable space over 12 floors. The upper
levels gradually step back to create a series of

attractive green terraces facing south, where
tenants can relax and enjoy the view.
A standout feature of the building is the way
it manages heavy rainfall. Rather than goingdirectly to the local wastewater system,
rainwater is channeled down from one terrace
to the next in a series of hidden waterfalls.
On the way down, it passes through biochar
and vegetation, which cleanses it, before
finally entering the waste system on thelowest terrace. This reduces peak flows to thewastewater system, removes impurities andprovides an attractive feature for tenants andbiodiversity.
Collaboration at every level
By the end of 2023, the development was
85-percent leased, with tenants including the
local Skanska office.
Collaboration played a critical role in Hyllie
Terrass achieving its aims. To improve energy
efficiency, a key to lowering climate impact,
our team worked with energy company E.ON

to source 100-percent renewable energy forthe building. This is supplemented by rooftop
solar panels and a storage battery.

Total carbon savings were around 3,000
metric tons, compared with the design before
the many emissions-reduction measures.

The overall design for the building was provided by Danish architecture firm Cobe, whichshares our vision for developing spaces that
improve lives and reduce climate impact.

We also collaborated with Swedish furniture
firm Swedese and interior designer Louise
Hederström to make use of on-site wastematerials to produce furniture and fittings forthe lobby. Waste from Swedese’s furniture
manufacturing business was combinedwith elements such as discarded protective
wooden coverings and beams to create items
including sofas, tables and a reception desk.

After scoping out many concrete-sourcing
options, we worked closely with concrete provider UPB to help them fabricate low-carbon
precast concrete façade elements for the
project. The foundations were created using
Skanska-produced low-carbon concrete. And
by replacing a high-carbon coloring agent
with micro silica, we were able to significantly
reduce embodied carbon in the façade.

In November, Hyllie Terrass was aquired by
Skanska Investment Properties, the fifth property in our growing portfolio of high-quality
office properties in Sweden.

Contents

Annual and Sustainability Report 2023

Sustainability
reportGroup overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management

H2Offices Budapest Hungary

Financial information

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40

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Group overview
Operations

Annual and Sustainability Report 2023

41

Sustainability highlights

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information-60%

31% 7,600

Reduction of carbon emissions from our own
operations (scope 1 and 2) since 2015.

Share of total revenue from road, rail
and water infrastructure projects.

Our climate target is approved as a sciencebased target on the 1.5°C trajectory.

10%

New green bond framework
We launched a new green bond frameworkand issued green bonds of SEK 4.6 billion
to finance the development of sustainable
commercial real estate projects and otherinvestments for climate transition.

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Executive Safety Site Visits (ESSVs)
performed by senior managers.

Share of total revenue from renovationof existing buildings.

Climate targets inincentive program

Skanska recognized asa climate leader

Starting 2023, a carbon emission reduction
target is included in our long-term incentive
program, Skanska Employee Ownership
Program (Seop 6). For the top 400 leaders,
up to 15 percent of performance shares in
the Seop 6 program is linked to our climate
target and a 7 percent annual carbon
emission reduction in scope 1 and 2.

We are listed on the FTSE4Good Sustainability
Index and recognized by Financial Times asa ”Climate Leader in Europe” for the second
consecutive year in a row.
We are also recognised in CDP A-list for ourleadership in transparent climate reporting.

25%

Women in senior positions, the four mostsenior levels below the President and CEO.

A LIST

2023

CLIMATE

Increasing the number of women in leadership
positions and throughout our company is along-term commitment.

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Group overview
Operations

Annual and Sustainability Report 2023

42

Our sustainable impact areas

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Together with our partners, we are building
for a better society, creating innovative andsustainable solutions that support living
beyond our lifetime. Sustainability is anenabler for our business strategy, a key
component for success for us and ourcustomers. Our sustainability strategy focuseson the areas of Responsibility, Climate andResilience, where we know we can have thegreatest impact.
Addressing climate change involves scaling
innovative solutions in areas such as energy,
increased efficiency and materials. We
apply climate-based scenario analysis to
identify and address climate-related risks
and opportunities. Scenario analysis also
serves as a cornerstone of our approach toinnovation by helping to identify needs andbusiness opportunities. The analysis shows
several areas to mitigate climate change
where we have a potential for business:• Clean energy and efficiency• Public transport infrastructure• Retrofitting and decarbonized buildings• Decarbonized materials• Resilient solutions
Creating transformative and innovative
climate solutions within these areas drives ourbusiness forward by enabling our customers to
succeed in fulfilling their sustainability goals.

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Responsibility

ClimateResilience

A responsible businessfor people and planet

Transformative solutions
for a low-carbon built
environment

Healthy, resilient
places for all

Health and safety
Fair and ethicalSustainable supply chain
Environment
Diversity

A responsible business for people
and planet
As a responsible business, we have acomprehensive approach to health andsafety that protects lives and well-being. We
are committed to acting fairly and ethically,
exercising integrity in all decisions, and beinga trusted business partner. We operate withcare for local environments and communities,
and work for a sustainable supply chain. And
we achieve our full potential by embracing
diversity and creating inclusive environments.
We are also guided by the UN Sustainable
Development Goals and Global Compact
principles. We continuously follow up
and drive improvements, and disclose oursustainability performance.

Insights for action
Net-zero innovations
Low-carbon construction

Healthy and climateresilient urban spaces
Long-term community
needs
Partnering

Transformative climate solutions
As we create and implement transformative
climate solutions, we drive our business forwardand empower our customers to succeed inmeeting their sustainability goals. We do thisusing solutions that are low in carbon, circular,
smart and sustainable. Achieving this involves
knowledge, insights and learning. We partner
to share knowledge and to develop andinnovate transformative solutions.
Our goal is to transition to low-carbon
construction across our projects andultimately meet our target of net-zero carbon
emissions by 2045. Scaling these solutions
will be critical for an industry transformationthat will lead to net-zero living.

Healthy resilient places for all
Many of today’s buildings and spaces were
not designed for the challenges faced bymodern society, such as extreme weather, air
pollution, water scarcity and energy efficiency
requirements. They also may not be designed
for changes in social patterns, such as risingurban population density and changing
working and living habits.
We shape healthy, inclusive and resilient
places by forming partnerships with communities to cultivate social value and address
long-term needs. Through collaboration,
we use our international and local presenceby transferring knowledge and foresight,
to create real advantages for our business,customers and society.

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Group overview
Operations
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Responsibility

Annual and Sustainability Report 2023

Focus on most material topics
To ensure that we focus our sustainability
efforts where they are most relevant, weregularly conduct materiality assessments
as well as continuous dialog withstakeholders across our value chain.

Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

43

The most material topics have been
identified by experts from outside andwithin the company, including our Group
Leadership Team. The topics have beengrouped to align with our sustainable impact
areas. The assessment has followed theprocess outlined by GRI Standards 2021 byexamining severity of the impact considering
scale, scope and remediability.

Sustainability in our business streams

The assessment has also included
potential for positive impacts. By
developing new solutions and sharing
knowledge about design and construction,
we can contribute to new solutions for
reduced emissions as well as improved
safety and well-being.
Our risk assessment on pages 99–105
and disclosure according to the Task
force on Climate-related Financial
Disclosures (TCFD) on pages 76–77
assess sustainability-related risks andtheir financial impact for the organization.

Construction
We see opportunities for helping ourcustomers with low-carbon solutions
and energy efficient buildings acrossour markets.

Residential Development
Attractive homes with an increased
emphasis on providing energy-efficient,high-quality homes.

Commercial Property Development
Implementing innovative solutions
throughout the building life cycle, such as
the development of highly energy efficientbuildings using digital solutions to control
energy usage and indoor climate. We
continue to shape places in attractive
locations.

Investment Properties
Our ambition is to build and actively
manage a property portfolio of high-quality
assets, with high environmental performance.
These properties serve as a test bed for
new solutions.

Our material topics
Responsibility

ClimateOccupational health and safety

Climate change: carbon emissions

Anti-corruption and ethical business

EnergyHuman rights in the supply chain

Circularity, including materials,
resources and waste

Diversity, equality and inclusion

Resilience
Resilience
Water
Biodiversity and ecosystems
Public health and safety
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ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

44

Our global commitments
We have been a signatory to the United
Nations Global Compact since 2001 andcontinue to support its 10 principles, relating
to human rights, labor, the environment andanti-corruption. This sustainability report isthe basis for our Communication on Progress(COP) for 2023.

We cooperate across industries in international organizations to influence
policy and practice for the transition to a net-zero future.
As a member of theExpert Advisory Group
within the Science
Based Targets initiative, we support the
SBTi in developing a pathway to net-zerofor buildings. We have influence throughour expertise on the industry as well as
the knowledge gained in the process ofdeveloping our own approved sciencebased target.

We actively support the United Nations
Sustainable Development Goals (SDGs).
We have listed subtargets for seven relevant
SDGs that our business contributes to.
Goal 11: Sustainable cities and communities
is where we can have the most impact. Our
performance related to the Sustainable
Development Goals is referenced in the GRI
and SASB Index on pages 215–218.
We support the rights of all people as describedin the Universal Declaration of Human Rights
adopted by the United Nations and in theconventions of the International Labor
Organization. We also follow the guiding
policies of Transparency International andapply the precautionary principle. We are in
the process of developing our supply chaindue-diligence processes in line with the OECD
Due Diligence Guidance for Responsible
Business Conduct.

Our identified subtopics
5.1
5.5

End discrimination against women and girls
Ensure full participation in leadership and decision-making

8.4
8.7
8.8

Improve resource efficiency in consumption and production
End modern slavery, trafficking and child labor
Protect labor rights and promote safe working environments

9.1
9.4

Develop sustainable, resilient and inclusive infrastructures
Upgrade all industries and infrastructures for sustainability

11.1
11.2
11.3
11.6
11.7

Safe and affordable housing
Affordable and sustainable transport systems
Inclusive and sustainable urbanization
Reduce the environmental impact of cities
Provide safe and inclusive green and public spaces

12.2 Sustainable management and use of natural resources
12.4 Responsible management of chemicals and waste
12.5 Substantially reduce waste generation
13.1	Strengthen resilience and adaptive capacity to climaterelated disasters
16.5 Substantially reduce corruption and bribery

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Within the World
Business Council for
Sustainable Development (WBCSD), we are part of the Built
Environment Pathway Board. The aim is
to contribute to decarbonization of thebuilt environment, by producing policy,
carbon accounting standards and industry
guidance reports. In 2023 the publication
Net Zero Operational Carbon Buildings:
State of the Art included cutting-edge
Skanska projects such as Hyllie Terrass
and Powerhouse Brattørkaia.
With the World Green
Building Council, we
contribute to policy and industry standard
development, including the value chain
perspective.
We are part of the­Leadership Group for Industry Transition (LeadIT) to
net-zero emissions together with leading

corporations and the governments of Sweden,
the USA, the UK, Finland, Germany and India.
It is an arena for public-private collaboration
on innovation and new technologies necessary
for a successful industry transition.

We are part of the United Nations-led
Exponential Roadmap Initiative with a wide
range of corporations leading the way in linewith the Paris Agreement’s 1.5°C target.

To contribute to the climate transition
through innovation and business ingenuity, ourGroup President and CEO Anders Danielsson
joined the CEO Alliance for Europe’s Recovery,
Reform and Resilience in 2022. It is a crosssector “action tank” that gathers leading
European companies to partner on innovative
climate solutions.
We work actively and contributeto ICC guidelines within sustainability such as anti-corruption, circularity andresponsible marketing.
We co-founded Building
Transparency which provides the
Embodied Carbon in Construction
calculator (EC3) to the US market.

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Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

IN FOCUS Norton Folgate, London, UK

Innovating to retain
a slice of London’srich history
The Norton Folgate project near London’s Liverpool Street
transport hub challenged our team on multiple fronts:
large sections of historic buildings had to be preserved andredeveloped alongside the construction of new buildings
targeting the highest sustainability credentials.
“From a construction perspective, the project
has everything,” says James Crosby, Senior
Design Manager at Skanska. “It is a collectionof six or arguably twelve different buildingsthat are stitched together to create a homogeneous campus feel, while using interesting
techniques and materials, particularly the
prefabricated parts of the façade as well as
framing.”
When finished, the development will provide
32,500 square meters (350,000 square feet)of commercial, retail and public space in aunique mixture of new and old buildings, somedating back to the late 1800s.

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45

Logistics had to be planned carefully on atight site in one of the busiest parts of the UK
capital. The team used innovative methods

and materials to maximize the space inside
the buildings, speed up delivery and minimize
disruption, all while improving health andsafety relative to more traditional methods ofconstruction.
Prefabrication cuts time and risk
The team used seven different Modern
Methods of Construction (MMC, a collective
name for modular off-site and on-sitemanufacturing of construction components)
to achieve better results. By fabricating
brick-faced precast concrete cladding panels
in a factory environment, they could cut
installation time by 50 percent, shaving
12 weeks off the build schedule.
The installation of the panels also required
75 percent less labor when compared to

traditional hand-laid brickwork, equivalent
to 40,000 working hours. Meanwhile, work atheight was reduced from 50 meters (164 feet)on site to a maximum of 3 meters (just under
10 feet) in factory conditions.
Another method included using ultra-highperformance fiber-reinforced concrete
instead of traditional concrete, which meant
the cladding panels were thinner, increasing
the internal floor space by 40 square meters.
Preserving parts of the old structures
presented some of the biggest challenges.
The old chimneys of the washhouse on Norton
Folgate were propped on temporary supports
while the structure below was demolished,
before the permanent structure was carefully
constructed underneath.
“A lot of time and work went into keeping
these chimneys in place, but the result is justphenomenal,” James says. “As a principle wealways want to keep as much as possible, toavoid carbon emissions from new materials,
and improve existing elements to perform tomodern standards. The alternative is wholesale demolition and rebuild, which wouldn’t be
the best option for the environment, and we’dlose so much of our rich culture.”
As many as 600 people might be working on
the site at any given moment, with as many
again working off-site. We and the developer
British Land together introduced a project
charter to maximize the development’s
positive impact on the community as well as
lifting workforce morale. It included awards forteam members who went “above and beyond”
and carrying out community work with local
charities, schools and businesses. The charter

also included objectives to boost the team’s
mental health and the project’s inclusivity.
“With such a complicated project, our communication had to be perfect, and really the
success of that was driven by the customer– it became a project mantra to approach
the tricky conversations openly and honestly
before agreeing how to work together,” Jamesconcludes. “The process aligned perfectlywith our values, and the completed buildings
will be a testament to what successful
partnerships can achieve.”Contents

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46

ClimateHighlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management

Transformative solutions
for a low-carbon built
environment

Financial information
By creating and implementing transformative
climate solutions, we drive our business forwardand enable our customers to fulfill theirsustainability goals. These solutions need to
be low in carbon, circular and sustainable.

Our goal is to transition to low-carbon
construction across our projects and achieve
net-zero carbon emissions by 2045. As wemove forward, scaling these solutions willbe critical for an industry transformationthat will lead to net-zero living.

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Powerhouse Brattørkaia Trondheim Norway

Success will require knowledge, insight andlearning. We work with partners to shareknowledge and to develop and innovate
solutions for the built environment.

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Corporate governance
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Financial information

Annual and Sustainability Report 2023

47

Charting a path to net-zero
We share insights and take part in crossindustry collaborations to develop solutions
that reduce the climate impact of the built
environment. By encouraging sustainablepublic procurement and financial models,transparency around climate emissions,as well as the use of digital tools, we drive
actions to reduce carbon emissions.

value chain (scope 3). For our own operations(scope 1 and 2) the interim reduction target
is 70 percent by 2030, from the base yearof 2015. The interim climate target for our
project development streams (Residential
Development and Commercial Property
Development) is to halve emissions in thevalue chain by 2030 from the base year 2020.

Halve carbon emissions in a decade
The built environment accounts for about
40 percent of global energy-related carbon
emissions according to the International
Energy Agency (IEA).

Transition requires investment
Transitioning towards a low-carbon economy
requires investment and financial planning.
This includes a need to develop and scale
new solutions, and to acquire and enhancecompetence and investments in technology.

We already see the consequences ofclimate change around the world, including
in our markets. As a project development
and construction company, we have theresponsibility to reduce emissions from ouroperations and in the value chain. We aim todevelop low-carbon, energy- and resourceefficient solutions for our customers, and use
our expertise to build resilience into the built
environment.
Our Group climate target is to achieve
net-zero emissions by 2045 both in our own
operations (scope 1 and 2) and across the

In 2023, we launched a new green bondframework and issued bonds with a total
value of around SEK 4.6 billion. The successful
issuance of Green Bonds was facilitated byour portfolio of highly sustainable buildings andmany initiatives to reduce carbon emissions
across the value chain.
The net proceeds from the green bonds
are used to finance or refinance capital
expenditure investments that help transition to
low-carbon, climate resilient and sustainablecommunities.

Investments in product development andinnovations such as low-carbon concrete andrecycled asphalt help our customers deliveron their climate goals.
The Green Bond framework was also updated
to include criteria from the European Union’s
taxonomy for sustainable activities andbroadened in scope to include a wider rangeof activities contributing towards our journey
to net-zero. The framework is third-party
verified by S&P Global Ratings and achieveda rating of Medium Green.
Meanwhile, the EU taxonomy for sustainable
activities and associated regulations
provides an incentive to direct investment
towards aligning with its criteria. We areworking across Skanska to integrate thetaxonomy’s critiera into the early stages suchas planning and design stages of our own
project development, thereby increasingalignment and meeting emerging stakeholder
expectations. Read more about our EU
taxonomy reporting on pages 71–75.

Climate targets
Target 2045

Net-zerocarbon e­ missions in our own operationsand value chain.

Target 2030
Skanska’s own emissions-70%
Reduction of our own carbon ­emissions(scope 1 and 2) ­compared with 2015.

Target 2030
Skanska’s value chain emissions-50%
Reduction of carbon emissions from ourvalue chain (scope 3) in development
streams compared with 2020.
The SBTi has approved our near-termscience-based emission reduction targets.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Climate transition plan for net-zero 2045
In 2023 we further developed our climatetransition plan, ACT. The climate plan has
been updated to clarify the businesspotential and governance of our climatetransition, while steering our path to net-zeroby 2045. The climate transition plan ACT has
three building blocks, which connect actions
and performance at all business levels:• Awareness of sustainable construction
and development• Customer solutions with low and zerocarbon emissions• Transformation to climate-efficient
operations

Sustainability information
GRI index

48

Each business unit undertakes an annual
review of climate related performanceand establishes targeted activities for the
coming years based on analysis of businesspotential and sustainable solutions.

Certification makes sustainability
performance comparable
We continue to offer our customers
certified projects using establishedcertification schemes such as Living
Building Challenge, LEED, BREEAM,BREEAM Infrastructure and WELL as
well as national certifications such as
NollCO₂, Miljöbyggnad, Nordic Swan
Ecolabel, Envision and RTS.

Certified buildings

100%
Share of total divestment value, corresponding
to SEK 3.5 billion, of divested offices in theCommercial Property Development businessstream, certified with LEED Platinum or Gold, or
BREEAM Excellent, or WELL. Includes properties
divested to Skanska Investment Properties.

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Skanska climate transition plan fornet-zero 2045
ACT on climate

Actions to reduce carbon emissions

Awareness• Market outlook and scenario analysis• Knowledge and culture• Communication and partnering• Measure performance and targets• Data-driven decision making
Customer• Innovation and smart digital solutions• Resilience• Optimized design for energy andmaterial efficiency• Certifications
Transformation• Refurbishment, circularity andlow-carbon materials• Resource and energy efficiency• Digitalization, electrification andindustrialization• Logistics• Renewable energy
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Circularity
Low-carbon materials

Digitalization

Optimized
designRenewable energy

Electrification

Energy+buildings

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Annual and Sustainability Report 2023

Measuring what matters
We have measured and reported carbon
emissions since 2008. We report carbon
emissions according to the GHG Protocol
categories described in more detail on page
67. Performance is followed up quarterly by
the Group Leadership Team and the Board of
Directors (the Board).

Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We have reduced carbon emissions in ourown operations, scope 1 and 2, by 60 percent
compared to base year 2015, and 11 percent
compared to 2022.
The use of fuels accounts for about 90 percent
of our own emissions while emissions fromheating, cooling and electricity account for
10 percent. Diesel, which currently accounts
for approximately half of our own fuel-usage
emissions, is used primarily for on-sitemachinery and electric generators. Key factors
in our reduction of fuel-related emissions
include efficiency improvements throughout

49

our operations, increased electrification andincreased use of biofuels. 93 percent of theelectricity we consume comes from renewablesources; this portion has increased from87 percent in 2022.
Our climate plans and targets have included
actions to improve operational efficiency,
leading to a reduction in energy intensity
for fuels and electricity (energy use/SEK M
revenue) of 33 percent between 2015 and2023. In 2023 the energy intensity MWh/SEK M
was 6.66 compared with 9.94 in 2015. Ourcarbon intensity (tonnes CO₂/revenue) for
scope 1 and 2 continues to decrease and is
now at 1.03 compared to 2.60 in 2015.
The majority of our carbon emissions stemfrom the value chain, calculated as scope 3.
These carbon emissions originate frompurchased materials and the energy needed in
the operational phase of our buildings’ lifetime.

The main materials contributing to carbon
emissions are concrete, cement, bitumen,asphalt and steel; these represent a large
proportion of the carbon emissions fromconstruction materials. Due to a weakerproperty market in 2023, there was adecrease in emissions from the categories
materials and other.
In our own project development operations,where we design and develop properties, we
calculate the energy used over an expected50-year lifetime. This lifetime energy usageis accounted for at the time of divestmentof the property which means that theannual total may fluctuate depending on
the number of divestments in a given year.
Low emissions from the use of sold products
category is explained by fewer divestments
within the Commercial Property Development stream during 2023, due to weakerproperty markets.

Carbon emissions in our own operations(scope 1 and 2)
Tonnes CO₂e

Tonnes CO₂e/
SEK M revenue

450,000

3

300,0002

150,000

1

002015 2016 2017 2018 2019 2020 2021 2022 2023

Scope 1
Scope 2
Carbon intensity (tonnes CO₂e/SEK M
revenue)

Carbon emissions in our value chain(scope 3)
Tonnes CO₂e
1,200,000
1,000,000
800,000
600,000
400,000
200,000

Average distribution of emissions in our own operation and value chain (2020–2023)

2020

2021

2022

2023

Material
Waste and other
Use of sold products

Purchased materials 52%
Ton CO₂e
1 200 000
1 000 000
800 000

Usage 36%600 000
400 000
200 000
2020

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Construction operations 12%

2021

2022

2023

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Annual and Sustainability Report 2023

50

Partner to innovate net-zero solutions

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We bring our knowledge and expertise to thetable in partnerships to create solutions thatdrive us, our customers and partners towards
net-zero emissions. By innovating with partners, we continue to exceed standards set byregulators, pushing the industry forward andcreating best-in-class examples.
Scaling up innovations
Our innovation portfolio is based on areasthat are important for our customers, themarket and for us to reach our financial andsustainability targets. Key drivers for innovation are operational efficiency, climate as well
as digital solutions. With our global and local
market presence, we benefit from being able
to share and scale knowledge and innovations
within and across markets. By scaling within
the Group, we can more efficiently use andimplement solutions connected to the focus
areas in the innovation portfolio.

In 2023 we have for example scaled
innovations in decarbonized construction anddigital solutions within and across markets.
Recent trials of electric excavators in the
USA followed on from successful use in theNordics. Design principles for energy-positive
buildings innovated in Norway are being usedin other Nordic markets.
Together with partners, we develop andscale innovative solutions that enable a
reduced climate impact from our operations
and products. The Powerhouse concept in
Norway with energy plus buildings, developed

together with partners, has successfully
been scaled to multiple buildings such as
new and refurbished offices, schools aswell as homes.
In the USA Skanska co-founded Building
Transparency which makes the Embodied
Carbon in Construction Calculator (EC3)system available to the industry. EC3
has around 125,000 valid environmental
product declarations (EPDs) from 1,800
companies in 67 countries used for open
source climate calculations.

Decarbonized construction• Low-carbon concrete production• Mass timber in multi-story­structures• Fossil-free construction sites• Energy-positive buildings andenergy storage

Material
production

2015

Demolition andrecycling

Transportation

Innovation

Usage
2030

Digitalization• Digital twins• Data-driven construction sites• Robots and automation• Smart building platform

2020

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Innovation portfolio examples

Construction

2045
Net-zero carbon emissions

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Annual and Sustainability Report 2023

51

Shifting to low-carbon construction

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

To succeed as a more sustainable industry,
we need to rethink the way we build.
Significantly cutting carbon in the constructionindustry can be accomplished by reexamining
energy, processes and materials from alife-cycle perspective. At Skanska we take aholistic approach to designing and building
with less emissions, incorporating resource
efficiency, circularity, renewable energy,
electrification and digitalization.
Carbon reduction in the construction
streamThe actions we take to reduce carbon emissions differ based on the project type. In ourconstruction stream, we increase efficiency
for energy and materials, increase use of
low-carbon materials and drive transition
to electrification on-site, while sharing our
experience and competence with ourcustomers. When we are part of decision
making in early contractor involvement
construction contracts (ECI) it allows us tocontribute with knowledge to improve designand construction of buildings and infrastructure projects. We also offer climate
calculations and solutions to achievesustainability certifications for our customers.
Digital solutions in our operations further
reduce emissions such as optimized design,
digital carbon-calculation tools, and planning tools for efficient transport systems. We
help our customers deliver on their targets
by investing in product development andinnovations such as low-carbon concrete
and recycled asphalt.

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In our industrial solutions operations we aretransitioning towards electrification andthe use of renewable fuels, while constantly
striving for greater efficiency. As a result 35(30) percent of our quarry sites in Sweden
have replaced diesel with electricity in the
production line.
Focus on energy in development streams
Within residential and commercial development streams we focus on energy-efficiency
and greater use of renewable energy tominimize use-phase emissions. We track
primary energy demand for buildings wedevelop. This is an important metric for manyof our stakeholders, including regulators,
customers and financial markets. The NearlyZero-Energy Buildings (NZEB) thresholds
set out by the EU’s Energy Performance of
Buildings Directive provides a benchmark
to assess the energy performance of ourbuildings.
The vast majority of the buildings wedevelop deliver an energy performance well
below these thresholds. Several buildings
achieve an energy performance more than
30 percent below their NZEB thresholds.
Additionally, we strive to ensure that theenergy performance and overall carbon
footprint of our buildings are consideredfrom early stages and aligned with our ambitious climate target. We carry out climate
calculations of embodied carbon on all ourown development projects.

Advancing circularity and refurbishment
Progressing circularity is a stepwise
process that requires testing new ways ofworking. The goal is to retain the value ofthe circulating resources, products, partsand materials by creating a system thatallow for renewability, long life, optimal
reuse, refurbishment, remanufacturing,
recycling and biodegradation. Together with
the WBCSD Built Environment Pathway, weare contributing to the development of a
protocol for circularity. We are also part ofInternational Chamber of Commerce (ICC)
circularity working group.
Using existing buildings and infrastructure
longer optimizes resource use. Partial orcomplete renovation of buildings and infrastructure is increasingly being requested in
our markets and 10 percent of our revenue
already comes from building renovation
projects. One example is in Norway where
we have an expert team for renovation of
office buildings, with a product portfolio that
includes the renovation of the Norwegianparliament in Oslo.
Reuse of building materials requires
solving the challenges of storage between
construction projects. We participate inseveral external material reuse initiatives.
In Skanska in Sweden we have established
an internal knowledge sharing network
examining circular materials, circular design,
circular use and waste, and established aninternal council to accelerate the circulartransition in 2023.

Energy reduction in new officebuildings-27%
Annual expected energy reduction indivested office buildings developed bycommercial development business units
in the Nordics, Europe and the USA.
> Read more on page 78

Revenue from renovation

10%of revenue for building projects comesfrom renovation.

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52

Group overview

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Download PDF for print

Recirculation of mass materials is an
important factor in reducing transportationand saving quality material. Reuse of
construction materials also reduces carbon
emissions and helps us reach our climate
targets. In Sweden we have several circulation
terminals for sorting, crushing and testingstone and rock materials, supplying the local
construction market with circular building
materials. In the largest fossil-free project in
the Nordic region, Stockholm’s Slakthusområdet (the Meatpacking District),
excavated stone masses are crushed andprocessed on-site to be reused within the
project. In addition 10 percent of the on-sitemachines are electric and the remainder is
run on HVO renewable fuel. Another example
is in Oslo, Norway, where we have establisheda reuse center for stone masses to reducetransports and increase reuse in projects.
Concrete is associated with high levels ofcarbon emissions, mainly in the productionof limestone cement. Industry actors areworking together on different solutions to
reduce emissions. One way to do this is tosubstitute and reduce the amount of limestone cement needed. This is complex due
to building standards and the need for very
high quality concrete products and loadbearing structures. To learn more quickly,
share knowledge and scale solutions wehave an internal expert forum with participants from several of our markets throughour innovation network. The members shareand scale knowledge on low-carbon concrete
including cement-free concrete, biochar inconcrete and the future cement-replacingbinders in concrete. 16 (15) percent of ourSwedish concrete production in 2023 was
low-carbon concrete.

Waste management
We aim to reduce waste and improve
efficiency with smarter design, planning,procurement and logistics. This often goes
hand in hand with reduced costs. We havetracked self-generated waste to landfill
since 2008. In 2023, 5.4 (6.8) percent ofgenerated waste went to landfill, which is an
improvement from last year but not meeting
our target of less than 5 percent.
In 2023, 79 (72) percent of total waste wasrecycled, 3 (8) percent prepared for reuseand 12 (13) percent other waste treatments.
Concrete, demolition waste, mixed
construction waste and asphalt are the fourlargest waste types.

Recycling asphalt
During 2023, we began operating oneof the most modern asphalt production
plants in the world. Located in Vällsta, justoutside Stockholm, it has been designed
primarily for recycling and can produce
100 percent recycled asphalt. The Vällsta
plant reduces carbon dioxide emissions
per metric ton of asphalt by up to 50
percent compared with similar plants,
thanks to more efficient energy use, nearly
doubling the use of biofuels for heating the
combustion chamber and increasing the
proportion of recycled asphalt in production.
In our asphalt production in Sweden, theaverage amount of reused asphalt in newasphalt mixes remained at a historic highin 2023, reaching 23 (23) percent.

Vällsta Upplands Väsby Sweden

Operations

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Annual and Sustainability Report 2023

Group overview

IN FOCUS Merkuria, Prague, Czechia

Operations

The complex pathto circularity

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance53

We are redeveloping the 1971 Merkuria
building in Prague into a 20,000 square meterpremium office and retail complex, targetingthe highest LEED, WELL, and WELL HealthSafety certifications.
As part of the pre-demolition process, we
identified almost 14,000 metric tons ofmaterials that could potentially be recoveredfrom the existing building, 80 percent of
which we hope can be reused or recycled.
To achieve our goal, much of Merkuria has
been dismantled by hand. If you had toured
the building during early 2023, you would haveseen neat stacks of wood, PVC pipes and fluorescent light tubes. As you moved from one
floor to another in what was then a partiallydeconstructed office building, you would havepassed through a narrow corridor of gypsum
sheets and mineral wool, each stacked above
head height.

Remuneration report
Risk and opportunity management
Financial information

Finding new partnerships
The process raised challenging questions,from where to store materials on a compact
site surrounded by infrastructure, to how tonavigate complex waste-handling regulations
and how some materials needed to be crushed
before they could be recycled.

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We aim to recover nearly 14,000 metric tons of materials
during the redevelopment of the 1971 ‘Merkuria’ buildingin Prague. Pieces of the building have found their way toplaces that might have surprised its original designers.

“The process presented many struggles, butalso fantastic new opportunities, because wewere really educating the market about new
methods,” says Martin Zemanek, ProjectManager in our Commercial Development
business unit in Czechia. “There were bumps
in the road, but we have given new life tomuch of what we found.”Partnerships have been crucial. To create apre-demolition audit, we worked with Cyrkl, an
online marketplace where companies can sellor buy industrial waste or used materials.
We then used its databases to find as many
new partners as possible that might put ourmaterials to good use.
Help for Ukraininan refugees
Pieces of Merkuria have found their way toplaces that might have surprised the original
designers. Kitchen fixtures were given a newlife in homes for refugees from the war in
Ukraine. Doors were donated to the University
Hospital in Prague. We found partners whoturned fixtures and fittings into art and otherproducts. And around 95 metric tons of glass
were retained, with 60 percent turned into new
windowpanes in partnership with Saint-Gobain.
The next phase will present new challenges
as we seek to crush the concrete from thesuperstructure before reusing it in our concrete
factory in Czechia. A small amount will be
used to make new concrete, with most goingto earthworks and landscaping on nearby
projects. However, learning from the process
will be as important as any materials saved,
because those lessons can be applied tofuture projects, Martin says.
”This project was a great opportunity tofind new ways to reduce our impact,” says
Anna Veronika Themerson, Environmental
Director at the Center of Excellence, Skanska
Commercial Development Europe. ”Our project
team really committed to this initiative and put
a lot of effort into meeting all the challenges
that arose. We strongly believe that implementing the principles of circular economy is
one of the most important solutions to protect
the resources of our planet.”

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Sustainability report

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54

Resilience

Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Healthy resilient places for all

Corporate governanceRisk and opportunity management
Financial information

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Many of today’s buildings and spaces were
not designed for the challenges faced bymodern society – challenges such as extreme
weather, air pollution, water scarcity andenergy efficiency requirements. They also
may not be designed for changes in social
patterns, such as rising urban population
density and changing living habits. Our visionof offering healthy, inclusive and resilient
places involves forming partnerships withlocal communities to cultivate social valuethat addresses long-term needs. We combinesocial and environmental perspectives tomake the most of the sustainable impact
we deliver through our business. Throughcollaboration, we use our international andlocal presence by transferring knowledge andforesight, to create real advantages for ourbusiness, customers and society. We envisiona world where sustainability is simply built into
living, and a future filled with healthier, moresustainable, more resilient urban spaces –places shaped together, for all.

City Library Stockholm Sweden

Remuneration reportContents

Group overview
Operations
Sustainability report
Highlights 2023

Annual and Sustainability Report 2023

55

Creating healthy, inclusive andclimate-resilient urban spaces

ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Together with our customers, we apply
our expertise to develop insights and help
mitigate the risks associated with climatechange. We design and build spaces andinfrastructure meeting society’s challenges.
Scenario analysis for resilient solutions
We apply scenario analysis to identify andaddress material risks and opportunities,
including those created and exacerbatedby climate change. We have built on recent
efforts conducted in collaboration with theWorld Business Council for Sustainable
Development (WBCSD), industry peers
and organizations such as International
Energy Agency (IEA) and World Resources
Institute (WRI); these efforts resulted in thedevelopment of a catalog of over 20 publicly
available climate scenarios. Output from thiswork has enabled us to consider a wide rangeof risks and opportunities, from changes topolicy and legal frameworks, to technologicaladvancements, changing market demands
and physical effects of a warming climate.
Analysis has been carried out with representatives from across all of our business units toprovide a wide range of perspectives. Read
more about how we make use of climate-based scenario analysis to identify and address
business risks and opportunities in our TCFD
reporting on pages 76–77.

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Mitigating impacts of climate change
The effects of climate change put pressure on
society, with more frequent storms, flooding,droughts, heatwaves, forest fires andepisodes of water scarcity. Urban areas need
to be made more resilient so that buildings,
infrastructure and society as a whole canwithstand the increased frequency andseverity of extreme weather events. Countries
and regions are drafting legislation with thisin mind, which creates business opportunities
for us to deliver projects for climate adaptation and a more resilient urban environment.
We have integrated climate risks into our risk
management and project scrutiny processes,
ensuring that projects mitigate potential
physical risks. Adaptation measures tomitigate physical risks are designed andimplemented on a project basis, taking into
account the specifics of the risk to be
mitigated, as well as the surrounding area.
Solutions that have been used in our projects
include ground-level flood proofing, elevationof technical infrastructure, and site paving
which absorbs water. Competence withinthese solutions is being spread across theGroup as we foresee a continued increase indemand.
During 2023, we scaled up our use of tools toassess physical risks associated with climatechange. By leveraging the latest climate
science, we have equipped ourselves with theinsights needed to effectively mitigate risks
related to climate change. By addressingthese risks, we can increase the resilience ofour projects, thereby providing added value toour customers and society.

In the city of Wrocław, Poland, which was hit by a devastating flood in 1997, we havemodernized the flood protection embankments of the River Widawa to protect the
population from future floods. This project was completed in 2023.

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Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Sustainable water management
Improving water efficiency is a key factor
in reducing impact on the environment. As
a project development and construction
company, we impact water usage, bothduring construction and when a building isin use. We have promoted more sustainable
water usage by integrating innovative waterefficiency solutions, such as replacing
potable water with alternative quality grades
where possible. Examples include gray-­water systems where domestic wastewaterfrom washbasins in bathrooms is treated
and then reused for non-potable uses suchas flushing toilets.
In Central Europe we see a specific demandfor circular water management due to
expected drought as a consequence ofclimate change. Advantages include lower
use of potable water, higher efficiency andreduced operating costs. In the projectModřanský Cukrovar, a residential building
project outside Prague, the Czech capital,
we have taken reuse to the next level. Graywater from washbasins in bathrooms istreated in the building and can be connectedto the washing machines, in addition toflushing toilets, further reducing freshwateruse.
Safeguarding biodiversity
Biodiversity refers to the variety andvariability of all life on earth, encompassing
ecosystems and species. We are part ofa collaboration with the WBCSD, helping
to define standards and further develop
approaches to address biodiversity in thebuilt environment.

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In 2023 we conducted a biodiversity assessment of both our operations and value chain.
The assessment was based on the ENCORE
tool, but complemented by input fromother sources such as the World Wildlife
Fund’s Biodiversity Risk Filter tool and theScience Based Targets Network’s Sectoral
Materiality Tool. The assessment highlighted
the dependencies that we have on natureand biodiversity – for example, nature’s ability
to regulate climate and to protect the built
environment from floods and storms. Biodiversity loss can impact the availability andquality of these ecosystem functions, which inturn can impact business operations.
The biodiversity assessment also outlined thepotential impacts that our own operations

have on nature and biodiversity. These
include impacts on terrestrial and freshwater
ecosystems as well as the effects ofwaste generation, greenhouse gas and air
emissions. We consider risks in the planningand construction phases, identifying what
measures we can take to reduce and mitigate
our impact.

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Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

However, there are also opportunities for
us to leave a positive legacy by enhancing
biodiversity on our projects and creating a
biodiversity net gain. One example comesfrom a project widening the railway fromsingle to double tracks between Ängelholmand Helsingborg in Sweden. We reused
100,000 cubic meters (3.5 million cubic feet)of soil excavated during the project to create
a new 4.5-hectare (11.1 acre) hilly habitat
for butterflies, the aptly named Kattarps
fjärilsbackar (“Kattarp’s butterfly slopes”).
In the UK using the biodiversity net gain
(BNG) methodology achieving a 10
percent net gain is a legal requirement forplanning permits from February 2024 inmost development projects, and we haveapplied the BNG methodology since 2020
on projects such as the Mindenhurst village
development in Surrey. In our residential
development projects, we work to create
new landscaped areas for local species ofwildlife.

IN FOCUS CLIMB

Understanding our
impact on biodiversity
We have been working with a group of
Swedish companies to develop a tool
aimed at bringing more consistency tothe judgments we make when it comes toprotecting nature.
Protecting biodiversity during construction
involves a series of trade-offs. Some aresimple: a tree that has been growing formany decades is more valuable than asmall patch of grass, for example. Other
choices are more complex.
The CLIMB tool was developed bypartners including Skanska, Cementa,
Vattenfall, LKAB, Boliden and SCA, andassigns values to different types ofnature and species. The values enable
companies from different industries toevaluate and set goals when it comes toprotecting biodiversity.
“CLIMB emerged from a need to beable to measure impact on nature in agood way, but also count in the sameway regardless of industry,” says Tim
Schnoor, an ecologist and sustainability
specialist at Skanska. “If all companies
use the same method, we can increasecredibility while reducing the risk of unfair
interpretations.”

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We and our partners are using the tool
voluntarily, but the need to measurebusinesses’ impact on nature’s ecosystems
is climbing the political agenda. CLIMB isloosely based on Britain’s biodiversity net
gain system (read more in the text to theleft).
We used CLIMB in 2023 to assess the biodiversity impact of planting meadow flowers
instead of grass when restoring after a
project digging a 6 kilometer (3.7 mile) cable
shaft. As part of the project, we were able torestore an area equivalent to eight football
fields (45,000 square meters, 484,000
square feet) planting over 20 species of
meadow flowers. The CLIMB tool rated thisas a significant increase in biodiversity,
compared to single species grass.
CLIMB was named the Sustainability
Performance of the Year 2023 by Sweden’s
Nätverket för Hållbart Näringsliv (the NMC
Network for Sustainable Business). “It is
more important than ever to get concreteand to act,” the judges said. “By making thetool free and accessible to everyone, CLIMB
contributes to informed decisions and asustainable future.”More information on CLIMB isavailable at climb.ecogain.se/Contents

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Designing for long-term community needs

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

We collaborate with people andorganizations in communities whose lives
and livelihoods may be affected by theplaces we shape, taking long-term needs
into consideration. This involves designingsustainable, low-cost homes and areas thatare inclusive and encourage outdoor activity.

A long-term collaboration with the Swedish
Sports Confederation resulted in the reuseof 130,000 metric tons of excavated material
for local sport facilities in 2023 nearby
our construction sites. This also reduced
transport of materials resulting in reduced
fuel consumption and carbon emissions.

Striving for a positive social impact
Listening to community needs and using ourcore competence as a tool, we can create
solutions that have a positive social impact.
International certification schemes forbuildings and infrastructure include social
topics in their sustainability assessments.
These are often connected to certifications
for environmental sustainability. In theCommercial Property Development, many ofour projects are certified with WELL, which
has a strong focus on tenant health and wellbeing. In Central Europe all our commercial
properties are WELL certified.

Social benefits through community
engagement
Our partnerships with cities and other publicsector customers enable us to give back to
the community. Skanska in Sweden applies
a process to design for social benefits inprojects by assessing local challenges andcommunity priorities. Examples are as varied
as multifunctional green spaces, communalart projects with schools and youth
internships. In our project in Vivalla, Sweden,
we have worked with the local municipality tooffer internships to people outside the labormarket. This program has been analyzed
by researchers from Örebro University andStockholm School of Economics. Of 100
participants in the program, almost half
have continued to work or started an
education, which has created high social
value. Thanks to the project, we now have asystematic method that can be applied inother projects.

BREEAM Infrastructure and Envision are
certification tools for infrastructure projects,
recognizing projects that engage in activities
and programs to expand their positive social
impact on the community.
Partnering for social value
As a major actor, we partner with
communities and customers who share ourambition to set new standards in terms of
how we build more resilient and inclusive
urban areas. We use our know-how andexperience to create opportunities for people
and communities to develop and grow.
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Creating opportunities through supplier
diversity
Skanska in the USA has a long history ofcollaborating with diverse underrepresented
firms to support their business growth.
This can include, but is not limited to, small

and local businesses owned by minority
groups, women, veterans and people withdisabilities.
Across our US markets, Skanska hascreated in-house programs designed toequip diverse firms with tools and resources
to become successful as contractors
and pursue opportunities on large-scaleconstruction projects.

Since 2007, over 800 companies
have engaged in Skanska’s programs.
Participating firms collectively exceed
USD 740 M in contracts on Skanska
projects. Through outreach, contracting,and curriculums like these, we are creating
sustainable opportunities for our business,
industry and society.

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Group overview
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Highlights 2023
ClimateResilience
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IN FOCUS Slussen, Stockholm, Sweden

A 400-year-old
landmark, remade
for a new era

Risk and opportunity management

On five occasions during Slussen’s almost
400-year history, the central Stockholm
interchange has been reworked to reflect thevalues and needs of the moment.
The version that most Stockholmers arefamiliar with was built in the 1930s, mostly toaccommodate the rising use of the motorcar.
Stockholm had a population of a little over
265,000 at the time, and the car was thought
to be the future of transport. The designers
could never have predicted that, almost 100
years later, 500,000 people would be passing
through Slussen every day, most of whomwould be walking, cycling or riding the subway.

Financial information
Slussen is once again being redeveloped toreflect a new era. When complete, the areathat includes the lock, the north quay of
Södermalm and the south quay of the Old
Town will be a shared space for the city. It
will also cut the risk of flooding to Stockholm
and farmlands surrounding Lake Mälaren
by making it possible to drain five times theamount of water from the lake into the Baltic
Sea – a necessary upgrade due to the increasing incidence of heavy rains and floods
caused by the warming climate.

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When completed, Slussen will be a shared space for amodern Stockholm, a city whose people mostly walk,cycle and travel by public transport. The lock at the centerof the project will make it possible to drain five times theamount of water from Lake Mälaren into the Baltic Sea,
substantially reducing the risk of flooding.

From traffic hub to meeting place“The old Slussen was built for cars, so most of
the walkways were narrow, dark and unsafe,
many of them underground with little or noview of the water,” says Peo Halvarsson, Site
Manager for the Skanska Slussen project. “Itis now being transferred from a traffic hub intoa meeting place for everybody in Stockholm toenjoy – to come close to the water, to have an
ice cream or enjoy a meal, all in a safe way.”

Slussen sits at the point where Lake Mälaren
meets the Baltic Sea. Two floodgates and thesluice locks sit at the core of the interchange,
regulating water levels, safeguarding important infrastructure and protecting drinking
water for 2 million people.
We were appointed by the City of Stockholm
to deliver projects spanning rebuilding thecurrent lock system, and the construction of
new buildings at Slussplan and Strömkajen,
a 140-meter-long steel bridge and the twolarge floodgates.
Reducing threat of flooding“We need the ability to shed water from thelake during the heavy downpours that wehave these days,” Peo says. “The new system
will minimize the threat of flooding in Stockholm, particularly the subway, while protecting
large areas of farmland in the wider region.”
Our team navigated many unique challenges
by working closely with partners and ourcustomer. Slussen is a very large redevelopment in which all work must be carried out ona tiny surface area, surrounded by culturally
important historic buildings, all while causing
minimum disruption to traffic and public
transport. Drainage capacity from Lake
Mälaren must be available throughout the
project. Yet we have thrived in shared spaces
with our partners through transparency andregular dialog.
“Complexity comes in many forms, shapes
and sizes, many of which we’ve had to tackle
at Slussen,” Peo concludes. “But by working
closely with our partners and our customer,and by considering those passing throughevery day, we think we’ve been able to do ourwork with minimal impact to everyday life.”

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Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

60

Responsibility

Highlights 2023
ClimateResilience

Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

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A responsible businessfor people and planet
Being a responsible business, inside and out,means having a strong and committed healthand safety approach that protects lives andwell-being. It means acting fairly and ethically,
exercising integrity in all ­decisions, and beinga trusted business partner with respect to the
supply chain. It means operating with care for
local environments and communities.

It involves using our full potential byembracing diversity and creating inclusive
environments. As a responsible business,
we are guided by the UN Sustainable
Development Goals and Global Compact
principles. We continuously follow up anddrive improvements, and disclose oursustainability performance.

Project Oas Malmö Sweden

Responsibility

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Group overview
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Sustainability report
Highlights 2023
ClimateResilience
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Sustainability information
GRI index

Corporate governance
Remuneration report
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Financial information

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

61

Ensuring health and safety
The safety of our employees andsubcontractors is our highest priority. We
address our health and safety objectives
with industry-leading standards and safety
solutions, coupled with an inclusive culture
and leadership focused on systematic
performance monitoring and targeted
actions with high impact.
The construction industry is associatedwith accidents and lasting health problems
which can arise if risk factors are not
managed properly. Noise, working in traffic
or at heights, vibration, hazardous materials
and lifting operations are risk factors in
our everyday work. We build a foundation
for safe work through high standards,
dedicated leadership and risk awareness.
We are strongly committed to providing
a work environment where everyone feels
encouraged to speak up, to ensure that wework safely or not at all.
Focus and strategic actions
Our goal is to create safe and healthy
workplaces. We partner to develop andinnovate technical solutions, designing
construction processes and develop ways ofworking to reduce health and safety risks in
our operations.
All business units establish a mandatory
Health and Safety Road Map which isreviewed and updated annually. The Road
Map is built around four focus areas: Safety
Culture, Hierarchy of Control, Analysis
and Subcontractors. It steers efforts intodeveloping and implementing safety
solutions that have a high impact.
Analyzing data to mitigate risks
Skanska’s greatest safety risks have beenconnected to lifting, loading, lowering andlogistics operations. Our focus on improving
practices in these specific areas has resulted
in a decrease in the number of reported highpotential incidents. We continue our efforts tomitigate risks connected to these operations
and others. The lost time accident rate (LTAR)
for 2023 was 2.6, a reduction compared to
2.9 in 2022.

Some of our key indicators for monitoringsafety performance are: LTAR; high potential
incidents that could have resulted in fatal
accidents (serious near misses); Executive
Safety Site Visits (ESSVs) which promote clear
and visible leadership; total case accidents(TCAs); severity rate of accidents; andbusiness units’ delivery on improvement plans.
Business units also have local indicators on
actions towards reducing risks within lifting,loading, lowering and logistics, as well as
training and auditing.
Safety performance follow-up is carried out
monthly by the business unit leadership teams
and quarterly by the Group Leadership Teamand the Board. Each business unit undertakesa mandatory annual governance review
of health and safety performance which
includes identifying risks, describing control
measures and establishing a plan of targeted
activities for the coming year.

Driving higher standards, together
The Group Health and Safety Standard
is mandatory: it is to be integrated into allbusiness units’ health and safety management systems, and applied in all work
locations. It includes requirements within
16 areas such as on-site risk assessment,
training, incident management andpersonal protective equipment (PPE), as
well as instructions for the most high-risk
construction site work processes. In
most markets, our Group Health and
Safety Standard is more stringent thanlocal regulations. All business units are
certified by the ISO 45001 occupational
health and safety management system,
which ­improves our capabilities to drive
continuous improvements.

Executive Safety Site Visits (ESSVs)

7,600
Site safety visits performedby senior managers. Target for 2023
was 6,900.

Health and Safety Road Map focus areas

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Lost time accident rate (LTAR)

Safety Culture

Hierarchy of Control

Analysis

Subcontractors

Raise leadership awareness andcreate a proactive safety culture toensure greater engagement andsafer construction sites.

Aims to eliminate or reduce exposure
to risk in the workplace, which allows
us to become more proactive in
addressing safety risks at an earlystage.

Analyze safety data to address key
risks and measure the impact of oursafety activities.

Involve our subcontractors
to secure Skanska standards andcreate the right conditions for
improved safety.

2.6
Employee and subcontractor losttime accident rate.

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Annual and Sustainability Report 2023

62Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

In the case of a serious accident, we ensurethat we identify and mitigate risk and that wemanage and learn from the accident in order
to avoid recurrence. During 2023, we did nothave any fatal accidents. If serious accidents
or fatalities were to happen we take immediate
action to understand the root cause, and work
purposefully to make sure risks are mitigatedas part of our continuous improvement.

The annual employee survey is an
important tool for us to monitor and listen
to our employees’ opinions about Skanska
as a company, our safety efforts andmanagement’s commitment to these issues.
The 2023 employee survey showed that86 percent of employees think we do a goodjob of monitoring and improving safety in theworkplace, which is above the industry norm,of 83 percent.

Each business unit manages occupational
health programs for its own employees.
Business units either have an internal
occupational health service or use an
externally contracted service.

Hierarchy of Control
The Hierarchy of Control illustrates the transition from a reactive to a proactive
approach when addressing safety risks. Our safety management systems include
all stages of the hierarchy. The greatest impact on safety is achieved in the earlystages of design and planning, where risks can be effectively eliminated.
Most
effective

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Elimination

Physically remove the hazard

Substitution

Replace the hazard

Engineering
Controls

Isolate people from the hazard

Administrative
Controls

Change the way people work

PPE

Protect the worker withpersonal protective equipment

Slussen: Thinking smarterto build more safely
The Slussen project in Stockholm (readmore, page 59) includes the constructionof a new Södermalm Square. The locationin the heart of the city required us to comeup with innovative ways to progress the
project safely for workers and the public,
with minimal interference for commuters.
The square – soon to be an important
meeting point where visitors can enjoya coffee or meet for a meal – has been
built over Slussen’s subway, where about
300,000 passengers pass throughevery day.
One challenge was that the square will
be supported by 35 steel beams, eachweighing about 40 metric tons. To minimize
disruption, prefabricated elements were
mounted on top of the beams so concrete
could be poured onto them later.
Reducing risk
The lifting of steel beams and prefabricatedelements was carried out at night while thesubway was closed. This minimized thetime required for track closures and cut therisk that materials could fall into subway
areas, all while keeping our workforce safe.
“This enabled us to work quickly during
short closures at night,” says Peo Halvarsson, Site Manager for the Skanska Slussen
project. “We have worked this way before

and we’ll do it again, because the right
option is always the safe and efficient
option.”The lock canal presented a similar
challenge. The working area is extremely
narrow, and much of the structure isunderwater. There is virtually no space tostore materials, so much of the lock has
been prefabricated off site. This created
the time and space to carry out othernecessary preparatory works, including
ground, piling and concrete work, which
has helped to save time and minimizerisks to everybody working on site.
Avoiding demolition
We also built a new quay line along
Munkbron (Monk’s Bridge) in the Old
Town. It looked like that part of the section
would require the demolition of an existing
quay structure using an excavator withassistance from divers. We suggested a
new quay structure with a sheet pile quay,
avoiding the need for demolition entirely.
“We made a commitment to ourselves
to ensure that we all work safely andanything we see that doesn’t conformto the highest standard is corrected
immediately,” Peo concludes. “When you
get the entire team doing the right thing,
it feels comfortable, so we do everything
we can to maintain that feeling.”

Contents

Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

63

A fair and ethical business, inside and out
We act fairly and transparently in our businessand decision making, aiming for a culture
where everyone working with us understands
that they can speak up and also chooses to
do so. We have zero tolerance for corruption,bribery or any other kind of unethical behavior.
Our Code of Conduct
The Skanska Code of Conduct sets out
principles for how all employees should work
ethically, with respect for people, the planet
and applicable laws and regulation. It covers
topics such as anti-corruption, fair competition, financial crime, discrimination, fairworking conditions, environmental and safety
responsibility, and human rights. The Codeof Conduct is supported by more detailed
policies and procedures.

Code of Conduct training

98%
Completion rate, Code of Conduct training
during first month of employment.

Code of Conduct refresher training

99%
Completion rate, Code of Conduct refresher
training on a two-year rolling basis.

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The Code of Conduct is reviewed regularly by
the Group Leadership Team and updates areapproved by the Board. Training is required
for all new employees during their first monthof employment. Mandatory refresher training
is undertaken by all employees on a two-year
rolling basis.
Supplier Code of Conduct in our contracts
Our Code of Conduct is supplemented by the
Supplier Code of Conduct, which is included
in our agreements with subcontractors,
suppliers, consultants, intermediaries andsimilar third parties. It outlines our expectations and requires that the same principles
flow down all tiers of our supply chain. It allows
for monitoring and auditing where appropriate
and makes it clear that a material breach of
our Supplier Code of Conduct can lead tocontract termination. Read more on our workwith supply chain responsibility on page 64.
Ensuring trustworthy partners
We take a risk-based approach to due
diligence on third parties. Mandatory ethicaldue diligence is carried out on intermediaries,
joint venture partners and sellers or buyers ofland or real estate assets. This looks at ethicalstandards and culture, as well as any pastlegal violations, possible transaction-related
conflicts and other indicators of risk. Where
necessary, deeper due diligence is carried out.
We work to ensure that we know the ultimate
beneficial owners of the parties we do business with. A global database for sanctions
screening is used, which automatically checks
all active suppliers every 24 hours. Productrelated sanctions risks are mitigated throughadditional due diligence, with particularattention given to high-risk suppliers. Our
procedures have been enhanced as a resultof the increasing risks following the war in
Ukraine and other global tensions.
Identifying and mitigating ethical risks
Structured ethics risk assessments are
conducted every second year and were
undertaken during 2023. These supplement
the broader enterprise risk assessments andaim to identify more specific risks. Available
data was examined to identify the risk factors
in each business unit.

Encouraging people to speak up
We want everyone at Skanska to feel
­empowered to raise any issue. Thisis vital, both to alert us to risk, and to
improve the working environment.
The 2023 employee survey showedthat 86 percent felt free to express
concerns without fear of negative
consequences, compared with theindustry benchmark of 67 percent. As
part of continuously improving ourspeak-up culture, we:• Create conditions for psychologicalsafety. Business units have started
training and awareness programs inthis field.
• Open discussions and structured
dilemmas dealing with real-lifescenarios. These activities increase
the likelihood that people will raise
serious concerns when they arise.
• Provide regular reminders of theways in which people can report,
including posters with QR codes toaccess the Code of Conduct hotline.
• Have a clear process. Reporters feel
more confident if clear guidelines
show the steps that will be followed.
Business units have explainers
covering local reporting options.
• Deal with all reports effectively.
Within the limits of confidentiality,
we are as transparent as possible
about reported cases. This achieves
high employee trust, engagement
and feedback.
• Raise awareness on the no-retaliation policy. Managers play animportant part as team builders andlistening leaders.

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Workshops were then held, with participantsfrom all levels of the organization, to draw out
the high-risk scenarios. Practical measures
will be implemented to address any newly
identified risks. These will be monitored andfollowed up regularly by each business unit
and reviewed on a Group level during 2024.

Skanska’s Code of Conduct Hotline, which
is operated by a third party and open to
employees and external stakeholders alike.
The Group Leadership Team and the Board
have an overview of all reported cases andtheir outcomes, and are kept informed ofhigh-risk cases. Investigations are carried out
independently of management with responsibility for the areas involved in the allegations.
Confirmed breaches of the Code of Conduct
result in proportionate disciplinary action up
to and including termination.

Resilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

The complexity associated with large
projects, long value chains and a mix of public
and private customers increases the risk ofbribery and corruption. Our Anti-Corruption
Policy sets out our zero-tolerance position
for all forms of bribery and specifies theactions we must take in high-risk situations.
Anti-corruption is part of our Code of Conduct
training which is mandatory for all employees.
In-depth education is targeted at employees
in more at-risk roles.
Reporting concerns of misconduct
Those who want to report a concern cando this directly with a business unit’s local
reporting line or ethics committee. Anyone
wishing to remain anonymous can use

In 2023, a total of 128 reports were received
via the Code of Conduct Hotline; 69 of thesereports related to workplace concerns
including bullying, discrimination, health andsafety, and individual employment issues.
Breaches were found in a total of 22 cases.
Ten reports were specifically classified asanti-corruption. There was no evidence ofbribery, but a breach of process was found in
one of these, resulting in removal of a supplierfrom site.

64

Sustainable supply chain
We strive for environmentally and sociallysustainable supply chains that ensure
safe and fair conditions for all. We workwith our suppliers and subcontractors to
implement a shared commitment to theenvironment, human and labor rights,
safety, ethics, diversity and inclusion.
We aim to ensure fair working conditions
wherever we operate, and we have zerotolerance for any form of human trafficking
or forced or child labor.
We continue to prepare for the EU
Directive on Corporate Sustainability Due
Diligence (CSDD). The directive includes a
duty to identify and mitigate a company’s
adverse impacts on human rights and theenvironment, in both its own operationsand value chain. An assessment based on

OECD Due Diligence Guidance for Responsible
Business Conduct has been conducted to
identify and assess adverse impacts in the
supply chain. We conduct nearly 500 supplieraudits annually, carried out by Skanska
staff and independent third parties, on bothprojects and at our suppliers’ premises.
In 2023 we carried out a special assessment
for two key commodities – aluminum andsteel – to understand the geographic footprintof the supply chain and the associated risks.
Building on this we have worked to identify asuitable risk assessment tool with a plannedroll-out to our business units in 2024. We also
continued to share existing best practicewithin the business, including raising awareness of the risk of forced labor on projects.

Safeguarding the environment
Our industry impacts the local environment where we operate. Construction ofbuildings and infrastructure consumes
large amounts of resources, including
materials and energy. At Skanska, we arecommitted to protecting the environment
to reduce our environmental footprint andto be mindful of our material usage.

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Our business units are certified according to
the ISO 14001 environmental management
system. We monitor and ensure the overallsound environmental management of
our sites, including avoiding the use ofchemicals listed in our restricted substancestandard. Major environmental incidents
are reported to the Group Leadership Team.

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Embracing diversity and inclusion

Sustainability report

Increasing the number of women in
leadership positions and throughout ourcompany is a long-term commitment. We
see an increase in the number of female
employees. Currently 20 percent of ouremployees are female. The share of womenin senior positions is 25 percent. Three out ofeight of the Board members elected by the
Annual General Meeting 2023 are women.

Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report

Gender ratios vary between professionalgroups, business streams and business
units. Craft worker employees account for
the largest gender gap, with 96 percent men
and 4 percent women. In the Commercial
Property Development and Residential
Development business units, male/female
ratios are about even. Other aspects of diversity, such as ethnicity, disability or age, aretracked by business units in line with differing
legal requirements between countries.

Risk and opportunity management
Financial information

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65

We know that diverse and inclusive teams
are a key driver for a successful business. We
are committed to being an equal opportunity
employer, attracting, recruiting and advancing
diverse talent to enlarge our talent poolin a male-dominated industry. We do nottolerate discrimination, regardless of social
background, ethnicity, disability, gender,
gender identity or expression, age, religion,
sexual orientation or any other protectedcharacteristic. We strive for a workplace freefrom harassment and bullying.

More diversity in the workforce
Skanska’s Group Diversity and Inclusion
Procedure specifies that the business units
are to work systematically with diversity andinclusion. All business units are required
to set up their own diversity and inclusion
steering groups as well as action plans andgoals, and track metrics to measure theirsuccess.

Equal pay for equal work
Skanska recognizes the importance ofproviding fair and objective compensation
which is free from bias. We are committed
to the principle of equal pay for equal work.
Personal characteristics or backgroundsuch as gender identity or expression, age,race or ethnicity, sexual orientation, andother characteristics protected by local laws
where Skanska does business should neverinfluence compensation decisions.
To promote equal pay throughout Skanska,
we are focusing on Group-wide compensation
procedures. These procedures requirebusiness units to describe how they work toachieve equal pay and monitor pay practices.

Creating an inclusive culture
According to our annual employee survey,
the overall trend for inclusion is positive:
88 percent of respondents agree that people
care for and treat each other fairly in our
workplace, 9 percentage points above theindustry benchmark. 79 percent of respondents agreed that their manager makes themost of the diversity in the team to achievestronger performance together.

Women in senior positions

25%
Four most senior levels below
the President and CEO

Women on Skanska’sBoard of Directors

38%
Women elected to Skanska’sBoard of Directors by the Annual
General Meeting 2023

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66

Sustainability information

Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

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Sustainability governance
The Board of Directors (the Board) together
with the Group Leadership Team sets ourGroup policies, strategies and targets, andfollows up on business unit performance andcompliance. Our Group strategy includes
a focus on sustainability, including climate.
We have adopted a Group Sustainability
Policy and other Group policies, standards,
procedures, and guidelines, to manage andsteer sustainability in the Group.

Group steering documents for sustainability
and innovation
The Group policies for sustainability, including
climate, ethics, health and safety, and innovation include:• Sustainability Policy – ­including
environmental and health and safety policies• Innovation Policy• Anti-Corruption Policy• Code of Conduct• Supplier Code of Conduct

The management of sustainability follows theGroup governance framework and internal
control, described in the corporate governancereport on pages 87–89. The Group govervanceframework is set at Group level. The Group
Leadership Team and the core corporate
functions and group functions are responsible
for following up on implementation andoperation in the business units. The Group
governance framework consists of three
categories of steering documents: mandatory
Group policies and Group procedures andstandards and non-mandatory Group guidelines. The Group governance framework is
applicable to Skanska and all its business
units and employees. The business units are
required to establish and maintain a robust
and well-functioning system of governancewithin their operations. Business units’
governance systems, such as policies andmanagement systems, should ­complement
and add local, practical detail to the steering
documents in the Group governance framework.
The Business Unit President is responsible for
implementation of the Group governanceframework in the respective business unit.

The policies are supported by the following
Group standards and procedures forsustainability, including climate, ethics, healthand safety, and innovation:• Sustainability Reporting Procedure• Health and Safety Standard• Health and Safety Road Map Standard• Restricted Substance Standard• Sanctions Procedure• Procedure of the Code of Conduct Program• Community Investment and SponsorshipStandard• Diversity and Inclusion Procedure
The Board and the Group Leadership Teamfollows up on Skanska’s sustainability performance, including climate and health andsafety, on a quarterly basis. The Group
Leadership Team conducts quarterly reviews
with business units. Skanska Executive Vice
President (EVP) Sustainability and Innovation
is a member of the Group Leadership Team.
Each business unit has an appointed Headof Sustainability functions, reporting to theBusiness Unit President or a management

team member in the business unit. Eachbusiness unit ensures that it has theappropriate structures, resources andorganization to manage sustainability
including environment, health and safety(EHS). All business units are required to haveenvironmental and health and safety
management systems certified to the ISO
14001 and ISO 45001 standards. Eachbusiness unit is required to have an innovation
portfolio aligned with the Group Innovation
Portfolio, based on the business strategy andmarket conditions.
In all business units, the heads of the
Sustainability functions work closely withcore corporate function Sustainability andInnovation and other business units to ensurealignment with our Group strategy and targets.
Knowledge-sharing is facilitated throughinternal forums such as the Sustainability andInnovation Group Network (SIGN).
Skanska’s Annual General Meeting (AGM)
2022 resolved, in accordance with the Board’s
proposal, to include an emission reduction
target in our own operations (scope 1 and 2)
in Skanska’s long-term incentive program
for the financial years 2023–2025 (Seop 6).
For the top 400 leaders, up to 15 percent
of performance shares in Seop 6 is linked
to how well the annual climate target of a
7 percent carbon emission reduction in ourown ­operations is achieved at Group level.
In ­addition, for 2023, the Group Leadership
Team has set activity-based sustainability
targets, including climate, as part of the shortterm incentive programs for all Business Unit

Presidents. Activity-based targets, in the
short-term incentive program for the President
and CEO include, for 2023, targets related toSkanska's climate target. Read more about
the application of performance criteria for the
President and CEO’s variable remuneration in
the Board’s remuneration report for 2023 on
page 97.
Climate and sustainability related risks areintegrated into risk management and project
scrutiny processes. Where relevant, risks are
addressed in tender processes by projects,
management teams, the Skanska Tender
Board, which consists of the Group Leadership
Team, as well as the Board’s Project Review
Committee which consist of board members.
This is aligned with requirements set out
by the EU taxonomy and EU Corporate
Sustainability Reporting Directive.
The governance structure for Skanska’s green
bonds is established in the Skanska Green
Bond Framework prepared by the Skanska
Green Bond Committee, which is headedby the EVP Sustainability and Innovation.
Other committee members include the Vice
President of Treasury, Senior Vice Presidentof group function Skanska Financial Services,
Business Unit President of Skanska Sweden,
and the EVP of commercial development
business units.

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In 2023, group function Internal Audit andCompliance reviewed all business units’ andcore corporate function Sustainability andInnovation’s management, processes andreporting within the area of climate.

We assess and monitor sustainability risks as
described in the risk report on pages 99–105.
This gives a comprehensive picture of risks
and opportunities for Skanska.

67Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Membership associations• CEO Alliance• CDP Reporter Services• ENCORD• Exponential Roadmap Initiative• ICC• LeadIT• Nasdaq ESG Transparency Partner• Science Based Targets Initiative• Transparency International• UN Global Compact• UN Sustainable Development Goals• World Business Council for Sustainable
Development• World Green Building Council
Materiality assessment
We have reviewed the materiality assessment
and stakeholder dialog that was conducted in
2022 according to GRI Standards from 2021.
In 2023, we have further assessed impacts
on biodiversity in a biodiversity value chain
risk assessment, and impacts on humanrights and environment in the value chain
in an assessment in line with OECD Due
Diligence Guidance for Responsible BusinessConduct. We have also collected insights via
stakeholder engagement surveys.

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There have been no changes to the material
sustainability topics since 2022. Material
sustainability topics are grouped to align with
our sustainable impact areas:
Responsibility: Occupational health andsafety, anti-corruption and ethical business,
human rights in the supply chain, diversity,
equality and inclusion
Climate: Climate change: carbon emissions,energy, circularity including materials,
resources and waste
Resilience: Resilience, water, biodiversity andecosystems, public health and safety
Process of the materiality assessment
We identified the most significant impacts
on the economy, the environment and people
from Skanska’s operations. We mapped ouractual and potential positive and negative
impacts, taking into consideration theperspectives of different stakeholders in
Skanska’s value chain, our own operations
and business relationships. Qualitativeinterviews were conducted with stakeholders
including members of Skanska´s Board andGroup Leadership Team members, industry
and employer associations as well as externalsustainability experts.

The impact was assessed based on severityof negative impact considering scale, scopeand remediability. For positive impacts
only scale and scope were considered. For
potential impacts, probability was also taken
into account. Topics were prioritized fromhighest to lowest severity and a threshold wasset for each topic to define the material topics
for Skanska.
The material topics have been validated by
the Group Leadership Team and have guided
the contents of Skanska’s sustainability
report. The material topics are not ranked asthey are all important to monitor.
The Skanska climate targets
Skanska aims to achieve net-zero carbon
emissions in its own operations and its value
chain (scope 1, 2 and 3) by 2045. For our
Development streams, the interim target isa 70 percent decrease of carbon emissions
from our own operations (scope 1 and 2) anda 50 percent decrease of carbon emissions
in the value chain (scope 3) by 2030. For our
Construction s­ tream, projects with externalcustomers, the interim target is a 70 percent
reduction of carbon emissons from our own
operations (scope 1 and 2) by 2030. The baseyear is 2015 for scope 1 and 2 and 2020 for
scope 3.

The scopes are defined according to theGreenhouse Gas Protocol.
• Scope 1 includes direct emissions fromsources owned or controlled by Skanska,
such as boilers, furnaces and vehicles• Scope 2 includes indirect emissions fromthe generation of electricity, heating andcooling purchased and consumed by
Skanska• Scope 3 includes indirect greenhouse gas
emissions from sources not owned or
directly controlled by Skanska.
For further information, see Sustainability
Reporting Principles page 78.
The full target description approved by the
Science Based Targets initiative is available
on their website: sciencebasedtargets.org/­companies-taking-action.

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ClimateOperations
Sustainability report
Highlights 2023
ClimateCarbon emissions (CO2e)1
Scope 1, 2 and 3 emissions (CO2e) and biogenic emissions (Outside of scope) generated in Skanska’s operations.
Tonnes CO2e

Resilience

Scope 1

Responsibility

Scope 22

Sustainability information
GRI index

Corporate governance
Remuneration report

Total energy usage
Total energy usage generated in Skanska’s operations.

2023

2022

2021

2020

2015

146,000

164,000

194,000

193,000

322,000

Location-based method

35,00034,0003

35,00038,00043,000Market-based method

16,00018,00022,00072,00080,000

MWh

2023

2022

2021

2020

2019

750,000

752,000

834,000

821,000

898,000

Non-renewable

572,000

634,000

696,000

699,000

716,000

Renewable

178,000

118,000

138,000

123,000

182,000

Fuel usage

Change since base year (scope 1 and 2), %

-60

-55

-46

-34

–

Renewable, %

24

16

17

15

20

Carbon intensity4

1.03

1.13

1.46

1.67

2.60

Electricity usage

237,000

228,000

226,000

300,000

331,000

1,014,000

1,652,0003

1,706,000

1,945,000

-48

-153

-12

49,00033,00022,000

Scope 3
Change since base year (scope 3), %Outside of scope5

Risk and opportunity management

Skanska’s scope 3 reported categories

Financial information

Category according to Greenhouse Gas Protocol6

17,00029,00049,000180,000

212,000

219,000

199,000

177,000

121,000

120,000

93

87

78

40

36

56,00042,00025,00024,00012,000District heating usage
CO₂e emissions (tonnes)

District cooling usage

2022

2021

2020

709,000

864,000

950,000

987,000

41,00042,00045,00045,0005. Waste generated in operations

3,000

3,000

12,00020,0006. Business travel (limited to air travel)

15,000

9,000

5,000

4,000

2. Capital goods
3. Fuel- and energy-related activities (not included in scope 1 or 2)

17,000

Renewable
Renewable, %2023

1. Purchased goods and services (limited to cement, concrete,steel, bitumen and asphalt)

Non-renewable

4. Upstream transportation and distribution

2,400

1,400

1,600

2,000

37,000Total energy usage

1,045,000

1,024,000

1,087,000

1,148,000

1,278,000

Non-renewable

648,000

706,000

771,000

904,000

976,000

Renewable

397,000

318,000

316,000

243,000

302,000

38

31

29

21

24

6.66

6.33

7.36

7.24

7.23

 Renewable energy (excluding heating andcooling), %Energy intensity1
1 Total energy MWh/SEK M revenue, according to segment reporting.

7. Employee commuting
8. Upstream leased assets
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products7

246,000

734,0003

695,000

890,000

Certified commercial buildings, share of total divestments value
Share of total divestments value, corresponding to SEK 3.5 billion, of divested offices in the Commercial Property Development business stream, certified with LEED Platinum or Gold, BREEAM Excellent, or WELL. Includes properties divested to
the Investment Properties business stream.

12. End-of-life treatment of sold products%

13. Downstream leased assets

Certified commercial buildings, share of total
divestments value

14. Franchises

2023

2022

2021

2020

2019

100

100

84

98

90

2023

2022

2021

Target

5.4

6.8

4.3

5

15. Investments
1 The base year is 2015 for scope 1 and 2 and 2020 for scope 3.
2 The market-based method is used when using scope 2 in calculations.
3 The value has been adjusted due to updated emission factors for 2022
4 Scope 1 and 2 (market-based)/SEK M revenue, according to segment reporting.
5 The direct carbon dioxide (CO2) impact of burning biomass and biofuels is reported as
Outside of scope and is included in our science-based target.
6 Category 2, 4, 7–10 and 12–15 is not included in the reporting.
7 A 50-year expected lifetime is applied when calculating lifetime emissions of sold buildings.
A 100-year lifetime is applied to infrastructure.

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Self-generated waste to landfill
Self-generated waste from projects sent to landfill.
%
Self-generated waste to landfill

Contents

Group overview

Annual and Sustainability Report 2023

Part of the Board of Directors' Report69

Responsibility

Operations
Sustainability report
Highlights 2023

Number of lost time accidents
Total number of lost time accidents.
2023

2022

2021

2020

2019

365

430

452

504

566

Skanska employees

144

174

175

231

252

Subcontractors

221

256

277

273

314

ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management

Lost time accidents

Lost time accident rate (LTAR)
Number of employee and subcontractor lost time accidents multiplied by 1,000,000 hours and divided by total labor hours.
LTAR

2023

2022

2021

2020

2019

2.6

2.9

3.2

3.1

3.1

Skanska employees

2.6

2.9

2.8

3.4

3.5

Subcontractors

2.6

3.0

3.5

3.0

3.0

Improving safety in workplaces
Percentage of favorable scores (“Strongly Agree” and “Agree” ratings on the 5-point SA-SD Likert scale).
Percentages indicate the proportion of respondents agreeing with the statement.

%
My business unit does a good job ofmonitoring and improving the safetyof my workplace

Generalindustry
norm

2023

2022

2021

2020

2019

83

86

86

86

89

88

ISO 45001 certification
Number of major non-conformities identified by accredited third-party auditors.
Major non-conformities

2023

2022

2021

2020

0

0

3

0

Financial information
Total case accidents
Total number of accidents that happen during or in connection with work.

Code of Conduct training
Share of employees who have undergone training in Skanska’s Code of Conduct.

2023

2022

2021

%

2023

2022

2021

2020

TargetTotal case accidents

1,076

1,159

1,235

First month of employment

98

96

98

97

100

Skanska employees

467

513

560

Updated training every second year

99

99

99

99

100

Subcontractors

609

646

675
Speak-up culture
Percentage of favorable scores (“Strongly Agree” and “Agree” ratings on the 5-point SA-SD Likert scale). Percentages
indicate the proportion of respondents agreeing with the statement.

Fatal accidents
Number of fatalities on Skanska worksites.
Fatal accidents

2023

2022

2021

2020

2019

0

5

3

2

4

Skanska employees

0

1

1

1

2

Subcontractors

0

4

2

1

2

Executive Site Safety Visits (ESSV)
Site safety visits performed by senior managers.

Executive Site Safety Visits

2023

2022

2021

2020

Target
2023

7,600

7,921

7,377

2,522

6,900

%
I can freely express my concerns
without fear of negative
consequences (e.g., safety,
discrimination, ethical matters, etc.)

Generalindustry
norm

2023

2022

2021

2020

2019

67

86

86

86

84

83

2023

2022

2021

2020

2019

128

140

118

152

190

2023

2022

2021

2020

2019

0

0

1

1

3

Code of Conduct Hotline
Number of reports reported to the Code of Conduct Hotline.
Number of reports

Significant environmental incidents
Significant environmental incidents with potential level of impact.
Significant environmental incidents

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Contents

Group overview

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

70

Responsibility, continued

Operations
Sustainability report
Highlights 2023

ISO 14001 certification
Number of major non-conformities identified by accredited third-party auditors.

ClimateResilience

Employees by business unit, 20231
Average headcount

2023

2022

2021

2020

2019

0

0

2

3

0

Major non-conformities

GRI index

Of which,
women% of total numberof employees(headcount)

Sweden

7,308

1,606

22

5,703

78

Norway

4,014

431

11

3,582

89

Finland

1,907

365

19

1,542

81

Central Europe

3,782

777

21

3,004

79

Business unit

Responsibility
Sustainability information

Total numberof employees(headcount)

Employees by gender, year-end
Employees by gender and management level.
%

2023

2022

Men Women

2019

Category
Skanska AB Board of Directors1

62

38

62

38

57

43

57

43

57

43

United Kingdom

3,414

912

27

2,503

73

Remuneration report

Senior executives (Group
Leadership Team, level 7)

62

38

57

43

57

43

67

33

67

33

USA Civil, USA Building
and Skanska Inc.

6,493

1,113

17

5,381

83

Business Unit Presidents (level 6)

83

17

92

8

92

8

92

8

92

8

Group Senior Vice Presidents(level 6)

38

62

37

63

50

50

44

56

33

67

Commercial Development
Europe

175

112

64

64

36

Senior positions (level 3–6)2

75

25

75

25

76

24

75

25

75

25

Commercial Development
Nordic

132

62

47

69

53

All employees

80

20

80

20

81

19

82

18

82

18

Commercial Development USA

80

41

51

40

49

BoKlok

310

112

36

198

64

Residential Development Europe

128

72

56

56

44

Financial information

Men Women

2020
Men Women

Men Women% of total numberof employees(headcount)

Corporate governanceRisk and opportunity management

Men Women

2021

Of which,men

1 Elected by the Annual General Meeting.
2 Level 6 employees are Business Unit Presidents and Group Senior Vice Presidents, level 5 are business unit management teams.
Level 3 and 4 are management levels below business unit management teams.

Headquarters
Total

152

72

47

80

53

27,894

5,674

20

22,22180

1 The definition is described under Reporting Principles on page 78, and differs from the definiton in Note 36.

Diversity and inclusion indicators from annual employee survey
Percentage of favorable scores (“Strongly Agree” and “Agree” ratings on the 5-point SA-SD Likert scale). Percentages
indicate the proportion of respondents agreeing with the statement.
Generalindustry
norm

2023

2022

2021

2020

2019

My manager makes the most of
the diversity in our team to achievestronger performance together

79

79

78

77

76

74

In my workplace, people care for eachother and treat each other fairly

79

88

88

88

86

84

%

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Contents

Group overview
Operations

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

71

EU taxonomy reporting

Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Skanska 2023 EU taxonomy results
For 2023 Skanska reports according to the
EU taxonomy (regulation (EU) 2020/852)
the percentage of revenue, CapEx (Capital
Expenditures) and OpEx (Operational
Expenditures) that is eligible for and alignedwith the taxonomy. 92 (92) percent ofrevenue is assessed to be eligible for thetaxonomy, while 7 (2) percent of revenue isassessed to be aligned with the taxonomy.
Incorporating taxonomy criteria andalignment assessments in ongoing Skanska
projects entails a significant change ofcurrent sustainability strategies and reporting
structures. This is being implemented using
a stepwise approach to ensure accuracy anda long-term, strategic development toward
increased alignment.

EU taxonomy framework for environmentally
sustainable economic activitites

Substantiallycontribute to atleast one of thesix environmental
objectives

Do nosignificant harm
to any of the otherfive environmental
objectives

Comply withminimum
safeguards

Skanska approach 2023
1. C
 limate change
mitigation (CCM)
or Climatechange adaptation (CCA)

2. CCM or CCA
3. S
 ustainable use
and protectionof water andmarine resources
4. T
 ransition to acircular economy
5. P ollution prevention and control
6. P
 rotection andrestoration of
biodiversity andecosystems

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 ocial and environS
mental impact
assessment
Code of Conduct
Code of Conduct
for suppliers
Taxation

Disclosures accompanying
the KPIs
Accounting policy for eligibility
Revenue
The Skanska share of EU taxonomy-eligible
activities is identified based on materiality,
according to a structured process. 100 percent of the revenue for Commercial Property
Development and Residential Development
streams is considered eligible under thetaxonomy, consisting of construction of newbuildings (activity 7.1).
For the Construction stream the eligibility
assessment is based on materiality froma revenue perspective and is carried out
for Skanska’s large construction projects
covering the majority of the construction
revenue. The eligible construction revenue
relates to projects in energy (activities 4.5,4.9), water and waste water (activities 5.1, 5.3),
infrastructure (activities 6.14, 6.15, 6.16) andconstruction (activities 7.1, 7.2). Other Skanska
streams considered eligible are Investment
Property revenue (activity 7.7) and otherrevenue streams related to construction of
new buildings (activity 7.1). A majority of theeligible revenue relates to new construction(activity 7.1), renovation (activity 7.2) andinfrastructure for road and rail transport(activities 6.14, 6.15).

CapEx
For CapEx investments such as property,
plant and equipment, intangible assets,
investment properties and some leases are
considered eligible.
OpEx
In 2023 available OpEx includes R&D andshort-term leases. However both are deemed
immaterial for the kind of project-based
business Skanska is conducting.
Assessment of compliance with regulation(EU) 2020/852
Each project is considered as one economic activity, and it is not split into smaller
components. We report in compliance withregulations as mandated by Article 10(3),Article 11(3), Article 12(2), Article 13(2), Article
14(2) and Article 15(2) of Regulation (EU)2020/852.

Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Assessment of alignment
In 2023 the environmental objective Climatechange adaptation (CCA) is considered in­addition to Climate change mitigation (CCM).
A clear majority of the eligible Skanska
revenue relates to building and ­infrastructure
projects within four different economic
activity categories defined by the taxonomy
framework, and alignment assessment
focuses on these activities. Two new ­economic
activities are included in the alignment
assessment for 2023:

Double accounting in the allocation of therevenue and CapEx is avoided by following
the financial reporting structure. Reporting isdone in accordance with International Financial Reporting Standards (IFRS). Skanska’s
issuance of green bonds is not financing
specific identified taxonomy aligned projects
so no adjustment of the turnover is needed to
avoid double counting.

72

Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information• 6.14 Infrastructure for rail transport (new)• 6.15 Infrastructure enabling (low carbon)
road transport and public transport (new)• 7.1 Construction of new buildings• 7.2 Renovation of existing buildings
We define taxonomy-aligned activities in
Skanska as commercial and residential
development as well as construction projects
related to the above economic activities that
fulfill technical screening criteria (substantial
contribution requirements and do no significant harm requirements) to the delegatedacts adopted pursuant to Article 10(3), Article
11(3), of Regulation (EU) 2020/852.
The share of taxonomy-aligned revenue isassessed from a project perspective prioritizing projects with significant revenue, highsustainability performance and high levels ofavailable data. Aligned CapEx is calculated as
expenditures related to assets or processes
that are associated with taxonomy-aligned
activities and investments in properties thatmeet technical screening criteria. Skanska
has assessed the ­possibility but not identified
any activities for a CapEx plan during 2023.

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Minimum safeguards
The minimum safeguards are in place to ensure that activities being labeled as sustainable also appropriately consider human rights,
corruption, taxation, and fair competition. It
is our assessment that many of the minimum
safeguards are covered by international legislation applicable to Skanska. The aspects notdirectly covered by legislation are assessed tobe met through the Skanska Code of Conduct,
Skanska Supplier Code of Conduct and are
informed by the UN Global Compact Principles.
Skanska continue to further evolve its workwith the minimum safeguards.

Contextual information
2022 is the base year for EU taxonomy
alignment reporting. Alignment increased in 2023 as result of adding one
new environmental objective and two
new economic activities in the scope ofreporting. During 2023 new instructions
were developed further guiding projects
in assessing taxonomy alignment. A
new internal platform on the taxonomy
has also been launched and will becentral in future efforts to inform andincrease awareness of the taxonomy
across the organisation. We include allbusiness in all markets in our taxonomy
assessment.
Revenue
The scope of alignment assessmentof revenue was expanded in 2023 byincluding one new environmental
objective in the assessment and two
new economic activities. This resulted in
an 7 percent alignment of revenue. With
new technical screening criteria for theenvironmental objectives, alignment ofrevenue is expected to increase in the
coming year.
We do not disaggregate economic activities. A project is considered eligible if amajority of the revenue is eligible under
the taxonomy; alignment is consideredin the same way.

CapEx
For 2023 we have extended the scope
for CapEx to include investments suchas property, plant and equipment, intangible assets, investment properties andsome leases are considered as eligible.
The extended scope has thus resulted in
40 percent alignment of CapEx.
OpEx
OpEx was not included in the 2022
report as it was not deemed material forour project-based operations. In 2023
available OpEx includes R&D and shortterm leases. However both are deemed
immaterial for the kind of project-based
business Skanska is conducting.

Group overview

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

Turnover1

2023

73

DNSH criteria(Does Not Significantly Harm)

Substantial contribution criteria

Proportion of
turnover/Total turnover

Y;N;
N/EL

Y;N;
N/EL

Y;N;
N/EL

Y/N

Y/N

14

15

17

18

19

20

Proportion of
Taxonomyaligned (A.1) or eligible (A.2)
turnover, 2022

Category
enabling activity

Categorytransitional
activity

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES

Taxonomy-aligned per
objective

Y;N;
N/EL

16

Minimum safeguards

Y;N;
N/EL

13

Biodiversity

Corporate governance

Economic activities

12

Circular economy

GRI index

9

Pollution

Sustainability information

Code(s)Responsibility

8

Water

Y;N;
N/EL

Resilience

11

Climate change adaptation%

Climate10

Climate change mitigation

Climate change adaptationMSEK(IFRS)

Highlights 2023

7

Biodiversity

6

Circular Economy

5

Pollution

4

Climate change mitigation

2

Water

3

Proportion of turnover, 2023

1

Sustainability report

TurnoverOperations

Taxonomy-eligible per
objective

Contents

%

%

CCM

7%

92%

Remuneration report

A.1. Environmantally sustainable activities (Taxonomy-aligned)

CCA

0%

92%

Infrastructure for rail transport

CCM 6.14./CCA 6.14. 7,528

5%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

E

WTR

0%

0%

Risk and opportunity management

Infrastructure enabling (low carbon) road transportand public transport

CCM 6.15./CCA 6.15. 681

E

CE

0%

0%

Financial information

Construction of new buildings

PPC

0%

0%

BIO

0%

0%

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

CCM 7.1./CCA 7.1. 3,303

2%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

2%

Turnover of environmentally sustainable activities(Taxonomy-aligned) (A.1)

11,512

7%

7%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

2%

Of which enabling

8,209

5%

5%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

Of which transitional

0

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
Electricity generation from hydropower
CCM 4.5./CCA 4.5. 625
0%
EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

0%

Transmission and distribution of electricity

CCM 4.9./CCA 4.9. 730

0%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

Construction, extension and operation of water collection,
treatment and supply systems

CCM 5.1./CCA 5.1. 3,045

2%

EL

EL

N/EL

N/EL

N/EL

N/EL

1%

Construction, extension and operation of waste watercollection and treatment

CCM 5.3./CCA 5.3. 1,717

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

CCM 6.14./CCA 6.14. 15,968

10%

EL

EL

N/EL

N/EL

N/EL

N/EL

16%

Infrastructure enabling (low carbon) road transport and public
transport

CCM 6.15./CCA 6.15. 25,489

15%

EL

EL

N/EL

N/EL

N/EL

N/EL

14%

Infrastructure enabling (low carbon) water transport

CCM 6.16./CCA 6.16. 1,854

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

1%

Construction of new buildings

CCM 7.1./CCA 7.1. 75,478

45%

EL

EL

N/EL

N/EL

N/EL

N/EL

46%

Renovation of existing buildings

CCM 7.2./CCA 7.2. 17,545

10%

EL

EL

N/EL

N/EL

N/EL

N/EL

11%

Acquisition and ownership of buildings

CCM 7.7./CCA 7.7. 186

0%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

Infrastructure for rail transport

Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)

142,638

85%

93%

100%

0%

0%

0%

0%

90%

A. Turnover of Taxonomy-eligible activities (A.1+A.2)

154,150

92%

100%

100%

0%

0%

0%

0%

92%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities

13,0198%

Total

167,168100%1) Turnover corresponds to revenue in Skanska reporting.

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EL;
N/EL
EL

E
T

Corporate governance

Y;N;
N/EL

Y;N;
N/EL

Y;N;
N/EL

Y;N;
N/EL

Y/N

Y/N

14

15

16

17

18

19

20

Proportion of
Taxonomyaligned (A.1) or eligible (A.2)
CapEx, 2022

Category
enabling activity

Categorytransitional
activity

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)

Remuneration reportElectricity generation from hydropower

CCM 4.5./CCA 4.5. 2

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

Transmission and distribution of electricity

CCM 4.9./CCA 4.9. 2

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

Risk and opportunity management

Contruction, extension and operation of water collection,
treatment and supply

CCM 5.1/CCA 5.1. 9

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

Financial information

Contruction, extension and operation of waste water collection
and treatment

CCM 5.3./CCA 5.3. 5

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

CCM 6.14./CCA 6.14. 67

1%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

E

Infrastructure for rail transport
Infrastructure enabling (low carbon) road transportand public transport

CCM 6.15./CCA 6.15. 75

2%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

E

Infrastructure enabling (low carbon) water transport

CCM 6.16./CCA 6.16. 5

0%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

E

4%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

Construction of new buildings

CCM 7.1./CCA 7.1. 207

Renovation of existing buildings

CCM 7.2./CCA 7.2. 50

1%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

Acquisition and ownership of buildings

CCM 7.7./CCA 7.7. 1,549

32%

Y

N

N/EL

N/EL

N/EL

N/EL

Y

Y

Y

Y

Y

Y

Y

0%

CapEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

1,970

40%

40%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

Of which enabling

149

3%

3%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

0%

Of which transitional

50

1%

1%

Y

Y

Y

Y

Y

Y

Y

0%

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Electricity generation from hydropower

CCM 4.5./CCA 4.5. 12

0%

EL;
N/EL
EL

EL;
N/EL
EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

EL;
N/EL
N/EL

0%

Transmission and distribution of electricity

CCM 4.9./CCA 4.9. 14

0%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

Construction, extension and operation of water collection,
treatment and supply systems

CCM 5.1./CCA 5.1. 59

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

1%

Construction, extension and operation of waste watercollection and treatment

CCM 5.3./CCA 5.3. 33

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

CCM 6.14./CCA 6.14. 457

9%

EL

EL

N/EL

N/EL

N/EL

N/EL

18%

Infrastructure enabling (low carbon) road transportand public transport

CCM 6.15./CCA 6.15. 509

10%

EL

EL

N/EL

N/EL

N/EL

N/EL

15%

Infrastructure enabling (low carbon) water transport

CCM 6.16./CCA 6.16. 36

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

1%

Infrastructure for rail transport

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E

Construction of new buildings

CCM 7.1./CCA 7.1. 1,409

29%

EL

EL

N/EL

N/EL

N/EL

N/EL

49%

Renovation of existing buildings

CCM 7.2./CCA 7.2. 341

7%

EL

EL

N/EL

N/EL

N/EL

N/EL

12%

Acquisition and ownership of buildings

CCM 7.7./CCA 7.7. 26

1%

EL

EL

N/EL

N/EL

N/EL

N/EL

0%

CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)

2,896

60%

60%

100%

0%

0%

0%

0%

97%

A. CapEx of Taxonomy-eligible activities (A.1+A.2)

4,866

100%

100%

100%

0%

0%

0%

0%

97%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESCapEx of Taxonomy-non-eligible activities (B)

0

0%

Total

4,866

100%

T

E
T

Proportion of
CapEx/ Total CapEx

Taxonomy-eligible per
objective

Economic activities

GRI index

13

Taxonomy-aligned per
objective

Sustainability information

12

Minimum safeguards

Code(s)Responsibility

11

Biodiversity

Y;N;
N/EL

Resilience

10

Circular economy

Y;N;
N/EL

Climate9

Pollution%

Highlights 2023

8

Water

MSEK
(IFRS)

Sustainability report

7

Climate change adaptation

6

Climate change mitigation

5

Biodiversity

4

Circular economy

2

Pollution

3

Climate change adaptation

1

DNSH criteria(Does Not Significantly Harm)

Substantial contribution criteria

Climate change mitigation

Operations

2023

74

Water

CapEx

Proportion of CapEx, 2023

Group overview

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

CapEx

Contents

%

%

CCM

40% 100%

CCA

0%

100%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

Part of the Board of Directors' Report75Group overview

Y;N;
N/EL

Y;N;
N/EL

Y;N;
N/EL

Y;N;
N/EL

Y/N

Y/N

13

14

15

16

17

18

19

20

Proportion of
Taxonomyaligned (A.1)or eligible (A.2)
OpEx, 2022

Category
enabling activity

Categorytransitional
activity

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

Proportion of
OpEx/ Total OpEx

Highlights 2023
ClimateResilience

Sustainability information
GRI index

Economic activities

Code(s)Responsibility

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

CCM

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
0

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

N

N

N

N

N

N

N

0%

OpEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

0

0%

0%

0%

0%

0%

0%

0%

N

N

N

N

N

N

N

0%

Of which enabling

0

0%

%

0%

0%

0%

0%

0%

N

N

N

N

N

N

N

0%

Of which transitional

0

0%

%

N

N

N

N

N

N

N

0%

A.2. Taxonomy-Eligible but not environmentally sustainable activities(not Taxonomy-aligned activities)
EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

N/EL

N/EL

N/EL

N/EL

0

0%

N/EL

N/EL

OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)

0

0%

0%

0%

0%

0%

0%

0%

0%

A. OpEx of Taxonomy-eligible activities (A.1+A.2)

0

0%

0%

0%

0%

0%

0%

0%

0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

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Taxonomy-aligned per objective

Sustainability report

OpEx of Taxonomy-non-eligible activities (B)

0

0%

Total

0

0%

0%

E
T

Taxonomy-eligible per objective

12

Minimum safeguards

9

Biodiversity

Y;N;
N/EL

8

Circular economy

Y;N;
N/EL

11

Climate change adaptation%

10

Climate change mitigationMSEK(IFRS)

7

Biodiversity

6

Circular economy

5

Pollution

4

Water

3

Climate change adaptation

2

Climate change mitigation

1

DNSH criteria(Does Not Significantly Harm)

Substantial contribution criteria

Proportion of OpEx, 2023

2023

OpEx

Operations

OpEx

Pollution

Annual and Sustainability Report 2023

Water

Contents

%

%

0%

0%

CCA

0%

0%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

Contents

Group overview
Operations
Sustainability report
Highlights 2023

Annual and Sustainability Report 2023

Part of the Board of Directors' Report76

Climate risk and opportunity management
according to TCFD recommendations

ClimateResilience
Responsibility
Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Governance
The Board is provided with quarterly updates
on Skanska’s progress towards our climate
targets. Where relevant, the Board considers
project-specific climate risks via its Project
Review Committee. To further integrate
carbon emission reductions into the business,
the AGM 2022 resolved, in accordance with
the Board’s proposal, to include an emission
reduction target in the Skanska employee
ownership program for the financial years
2023, 2024 and 2025 (Seop 6).
The Board and Group Leadership Team sets
policies, strategies and targets for the Groupand follows up on business unit performanceand compliance. Sustainability and innovation
are embedded in our Group Strategy. The
Group’s Sustainability Policy and otherpolicies, standards and guidelines provide
governance concerning sustainability andclimate change. The Executive Vice President
Sustainability and Innovation oversees climate-related risks and opportunities. The Group
Leadership Team follows up on Skanska’s
climate performance on a quarterly basis,including follow-up with all business units.
For 2023, the Group Leadership Team has
set activity-based climate-related targets as

Download PDF for printpart of the short-term incentive programs for
Business Unit Presidents. Finally, climate-related risk is addressed on a project level in thetender process. Read more on page 105.
Strategy
Since 2022, Skanska has applied climatebased scenario analysis to identify andaddress climate-related risks and opportunities¹. Analysis has been performed withrepresentatives across the organization,
representing all of Skanska’s business
units and thereby providing a wide range ofperspectives. Scenario analysis has served asa cornerstone of our approach to innovation– by helping to identify needs and business
opportunities presented under different
climate scenarios. In our innovation portfolio,
most of the areas are related to sustainability
and primarily climate. Read more about thison page 50.
The table on page 77 provides an overview
of the risks and opportunities that we haveidentified, as well as the actions that we havetaken to address these. Note that this table isa summary of risks identified and should not
be considered exhaustive.

1In our work with climate-based scenario analysis, we have applied a wide range of scenarios including the Net Zero 2050, Divergent Net Zero,
Below 2°C and Current Policies scenarios from the Network for Greening the Financial System (NGFS); and the Net Zero Energy 2050 and
Sustainable Development scenarios from the International Energy Agency (IEA).

Risk management
Climate risk is an integrated part of ourapproach to enterprise risk management.
See pages 99–105 for a comprehensive
description of Skanska’s risk and opportunity management.
Climate risks are also an integrated partof Skanska’s approach to project-level risk
management as project teams are required
to identify, assess and mitigate relevant
climate risks as part of investment andtender processes.

Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Group overview

Risk area and description

Operations

Transition
Examples of risks and opportunities associated with the transition to a low-carbon economy

Sustainability report

Policy and legal

Highlights 2023
ClimateResilience
Responsibility•E nhanced reporting and public disclosure requirements,
e.g., CSRD, EU taxonomy•M andates on energy performance (energy performanceof buildings directive)• Cost of carbon

Sustainability information
GRI index

Corporate governanceTechnology• New technologies and innovations needed to meet climate targets

Remuneration report
Risk and opportunity management
Financial information

Market•C hanging customer expectations•C hanging competitor landscape•N ew markets and opportunities

Reputation• I ncreased scrutiny from stakeholders including e.g., customers,
regulators, media, NGOs, investors• I ncreased stakeholder expectations

Potential impact

77

Mitigation measures/activities

Current and increasing regulations on e.g., energy performance, public disclosures•S kanska aims to hold a leading position within sustainability. The demand forand carbon pricing can, depending on mitigation measures, lead to both positive andsustainable buildings and infrastructure is expected to increase even under anegative implications relating to e.g. operating costs, as well as brand and reputation.
business-as-usual scenario•S kanska strives to position itself as a leader in the low-carbon transition, andprovides transparent, third-party verified disclosures and ESG data
• Construction and project development is a resource intensive industry. However,
Skanska’s focus on operational efficiency reduces the use of resources and thereby
also reduces exposure to increases in the cost of carbon
The successful transition to a low-carbon economy requires new technologies and•S kanska leverages a focused approach to innovation, enabling the identification,
innovations, which in turn creates risks and opportunities as companies compete to
testing and scaling of targeted and commercially attractive solutions andseize first-mover advantages and capture leadership positions within their industries.
innovations that can contribute to the low-carbon transition. For example, see page
Increased demand can also cause supply chain bottlenecks for certain products and50
materials. Additionally, new products and services could require updated regulations. • S
 kanska engages in active dialogs with regulators and other stakeholders to ensure
All of these factors can have both positive and negative implications within e.g., brandan effective transition to a low-carbon economy via industry associations, readand reputation, attractiveness to customers, investments in innovation and R&D,
more on page 44
supply chain.
Rapidly increasing customer expectations can already be seen and are expected• With a proven track-record within low-carbon and sustainable solutions, Skanska is
to continue, particularly under 1.5°C and below 2°C scenarios. This also leads to awell-positioned to meet an expected growing demandchanging competitor landscape as existing peers shift to meet new expectations and • S kanska plays an active role in international partnerships such as WBCSD, WGBC
potential new competitors enter the market. Depending on response, these changes
and Envision, aiming to ensure a position at the forefront of the low-carbon
to the market can influence revenue and earnings, brand and reputation, as well astransitioncompetitive positioning.
•S kanska is exploring potential new opportunities arising from the low-carbon
transition. For example, the demand for retrofitting of existing buildings increases
significantly across both 1.5°C and 2°C scenarios
Increased scrutiny from stakeholders is already a reality and may continue to• High ambitions have been set by Skanska’s Board and the Group Leadership Team
increase. Companies can see their brands and reputations damaged if they are seen
including emission reduction targets that have been approved by the Science
to be delaying the transition to a low-carbon economy. This is particularly relevant
Based Target initiative, lending credibility and trustworthinesswithin construction and development as the built environment is a large contributor to • S kanska maintains high standards in reporting, with a strong focus on credibility
global emissions.
and with proof-points to back up claims•S kanska has for many years disclosed sustainability data in its Annual andSustainability Report including third-party limited assurance of carbon data

PhysicalExamples of risks and opportunities associated with the physical consequences of climate change
Acute• I ncreased frequency and intensity of extreme weather events

Chronic•H igh average outdoor temperatures• Alterations in sea levels, weather patterns and ecosystems

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Extreme weather events are already more prevalent in many parts of the world
and their frequency and intensity are expected to increase across scenarios, butparticularly under business-as-usual scenarios under which emissions continue torise. Depending on mitigation measures, events could cause disruptions to projects,
with potential implications for example operating costs and the value of assets.

•S kanska has procedures in place for managing extreme weather events where
relevant and limiting their effects on operations including e.g., mitigation measures
such as flood defenses

Average temperatures are expected to increase, especially under business-as• High levels of heat are already a reality in some of our markets, where we haveusual scenarios. Higher temperatures can disrupt outdoor work while other chronic
procedures in place to ensure safe working conditions. This experience is shared
implications include higher sea levels, which can affect the attractiveness of land andacross the Group as the issue becomes relevant in other markets and geographies
existing property, as well as increase demand for infrastructure projects needed to• There is a visible demand in the market for climate resilient infrastructure andincrease resilience.
buildings. This is seen increasingly in bids, both in Europe and in the USA• Climate risk analysis is a part of Skanska’s project risk management and design
processes

Contents

Group overview
Operations

Annual and Sustainability Report 2023

Part of the Board of Directors' Report78

Sustainability reporting principles

Sustainability report
Highlights 2023
ClimateResilience
Responsibility

Skanska reports in accordance with the GRI Standards forsustainability reporting. Skanska aims to ensure that all
information and data is relevant, transparent, consistent,
accurate and complete and that it provides an objective
picture of the Group’s operations. The reporting period is
January 1, 2023 to December 31, 2023.

Skanska applies the financial control approach. In joint
ventures the equity share approach is applied. Emissions
data is subject to inherent uncertain­ties due to incomplete scientific knowledge used to ­determine emission
factors and uncertainties in m
­ easurement methods, andthe resulting effects on measurements and estimations.

Sustainability disclosures are reported from the business
units quarterly or monthly using our sustainability
reporting system, unless otherwise indicated. Five years ofdata are normally reported, unless such data is unavailable or unless otherwise indicated. Due to rounding, sometotals in tables may not correspond with the sum of theseparate figures.

Base years for Skanska Group’s climate target havebeen selected on the basis of data quality. Skanska hasmeasured and reported carbon emissions since 2008.
The first year for limited assurance of Skanska’s GHG
emission data was 2014. The base year is 2015 for scope
1 and 2 emissions and 2020 for scope 3 emissions.

Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Greenhouse gases and energy
Skanska calculates and reports greenhouse gas emissionsin accordance with the GHG Protocol Corporate Standard.
Scope 2 emissions are calculated in accordance with GHG
Protocol Scope 2 Guidance applying the market-based
and location-based methods. Scope 3 emissions arecalculated in accordance with the GHG Protocol Corporate
Value Chain (scope 3) Accounting and Reporting Standard. Activity data is based on invoiced data, real-time
meters, models, assumptions, estimates or data as reported by suppliers. Scope 3 emissions reporting herein refers
to total emissions across disclosed Scope 3 categories
and does not reflect the limitations imposed by the 2030
interim target. The scope 3 reporting is under continuous
development to better align reporting boundaries with theGroup’s operational structure and to improve follow up of
scope 3 emissions from suppliers.
Energy conversions use publicly available conversion
factors and emission factors are sourced from databases
such as the IEA (2023), DEFRA (2023), Inventory of carbon
and energy (ICE) 3.0 and the AIB’s European Residual
Mixes 2022. Greenhouse gases included in the reported
carbon inventory are carbon dioxide (CO2), methane(CH4) and nitrous oxide (N2O). Biogenic emissions of CO2
from the combustion of biofuel and biomass are reported
separately from the gross direct (scope 1) GHG emissions
as Outside of scope. The Global Warming Potentials usedin the calculation of CO2e are based on the IPCC Fifth
Assessment Report (AR5) over a 100-year period, withthe exception of scope 2 calculations applying emission
factors from the IEA, which are based on AR4.

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Certified office and commercial certifications
The figure is calculated as the share of total value ofdivested offices, according to IFRS reporting, in theCommercial Property Development b­ usiness stream,
certified with LEED Platinum or Gold, or BREEAM Excellent
or WELL. Certified offices and commercial buildings
are reported manually to Skanska’s headquarters in
Stockholm. Includes properties divested to Skanska
Investment Properties from 2023.
Energy reduction in new office buildings developed bycommercial development business units
This figure is calculated as all office properties divested,according to IFRS reporting, developed by business
units Commercial Development Europe, Commercial
Development Nordic and Commercial Development
USA, all of which are certified by LEED Platinum orGold, or BREEAM Excellent, or WELL. This calculation
is made in comparison to national NZEB values withthe exception of US projects, where ASHRAE is applied.
Includes properties divested to Skanska Investment
Properties from 2023.
Waste
The indicator for waste to landfill is defined as theamount of self-generated waste to landfill. Self-generated by Skanska means materials brought into the project
which were not used in the production of the project but
are rather being treated as waste. Excavated materials
are not included in the definition. The waste disposal
method is based on the organizational defaults of thewaste disposal contractor. We have different waste disposal providers in different markets and business units

follow up their respective contracts. The waste disposal
category prepared for reuse is likely underestimated as it
is not captured by the waste disposal providers in manymarkets. The waste indicator is measured as the weightof waste sent to landfill divided by the total weight ofself-generated waste. Data is based on invoiced data,
qualified estimates or data as reported by supplier, and issubject to inherent uncertainties.
Compliance with ISO 14001 and ISO 45001
management systems
If a third-party auditor identifies a major non-conformity
in its review, it is to be reported through the sustainability
reporting database.
Health and safety
The lost time accident rate (LTAR) represents thenumber of accidents resulting in an injury that restricts
the individual from being able to perform their normallyassigned duties for a period of one or more working days,
multiplied by 1,000,000 hours and divided by total labor
hours. Total case accidents include all accidents requiring
medical treatment; lost time accidents are a subset ofreportable accidents and are therefore included in thisnumber. The number of fatal accidents refers to the year
when the accident occurred. The reported data includes
Skanska employees and subcontractor employees working
on Skanska jobsites. The data is based on reports from the
projects. The LTAR is influenced by national regulations,norms and regional definitions, and is therefore subject toinherent uncertainty.
Annual employee survey (YVOS)
The annual employee web survey was conducted during
fall 2023. All employees are included with the exceptionof craft employees at Skanska USA Civil and Skanska
USA Building, due to union restrictions. The percentage
of favorable scores refers to “Strongly Agree” and “Agree”
ratings on the 5-point SA-SD Likert scale. These percentages indicate the proportion of respondents agreeing withthe statement presented.
Code of Conduct training
Code of Conduct training statistics are collated by thebusiness units’ HR functions and entered into the Skanska
common reporting system. The business units report
as non-compliance any new employee who has notparticipated in Code of Conduct training within one monthof starting work. Temporary staff and consultants whowill be working with Skanska for a medium to long periodof time are also required to take the training, normallywithin three months of starting work, although this timerequirement differs between business units. Refresher
training for all employees is required every two years. Due
to differences in reporting, the percentage of employees
taking the refresher training within two years may in somecases cover a period of up to 27 months.
Human resources
The HR statistics are reported manually by the business
units’ HR functions through the Skanska Common
Analytics data entry portal. Data is broken down by genderand is reported on a quarterly basis. The headcountreflects the actual number of people directly employed
by Skanska at the end of the quarter. All employees countas one, regardless of worktime percentage. The average
headcount is calculated as the average over the last four
quarters.
Changes in the Sustainability report between 2022 and2023• Benchmark changed from ASHRAE to NZEB for the KPI“Energy reduction in new office buildings“New data disclosed• Scope 2 Location-based emissions for 2022 has beenadjusted due to updated emission factors• Scope 3 Use of Sold Products emissions for 2022 hasbeen adjusted due to updated emission factors

Contents

Annual and Sustainability Report 2023

Corporate
governanceGroup overview
Operations
Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management

P180 Warsaw Poland

Financial information

Download PDF for print79

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Corporate governance report
Governance structure

Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

Good corporate governance ensures that Skanska is managed responsibly, efficiently
and in a sustainable way on behalf of all of our stakeholders including but not limited toshareholders, customers, suppliers, society and employees. Furthermore, good corporate
governance supports our strategy and competitiveness, ensures oversight across the­organization by the Board of Directors (the Board), the President and CEO and the Group
Leadership Team, guides our employees in good business conduct, and ensures a soundrisk culture, robust risk management to effectively identify and control risks, and effective
decision-making with clear accountability at all levels.
This corporate governance report for 2023 forms part of the Board's report for Skanska’sAnnual and Sustainability Report 2023. The report has been prepared in accordance with
Chapter 6, Section 6 of the Swedish Annual Accounts Act and the Swedish Corporate
Governance Code (the Code), and has been reviewed by the company’s external auditors.

Download PDF for print

80

Corporate governance principles
Skanska is one of the world’s largest project
development and construction companies.
We operate across select markets in theNordics, Europe and the USA. Supported
by strong trends in urbanization anddemographics, and by aiming to be at theforefront of sustainability, we offer competitive
solutions. With our purpose and values,
strategy, talented employees and trusted
brand, we have a solid foundation to continue
contributing to creating a sustainable future
for customers and communities as well as
creating long-term value for shareholders.
The ­parent company of the Group is
Skanska AB (the Company), with a registeredoffice in Stockholm, Sweden.

laws, rules and regulations that ­affect ourgovernance. In addition, to ­govern the Groupand to ensure compliance with applicablelegal and regulatory requirements by all
business units and functions in the Group,
we have adopted a range of internal rules
and processes. Sustainability and ethics
are integral parts of our strategy and theGroup’s business.

As a Swedish public limited liability company
with shares listed on Nasdaq Stockholm,­Skanska is subject to a variety of external

Further information on our ­corporate
governance is available on the Group ­website:group.skanska.com/corporate-governance/.

Skanska has no deviations from the Codeto report for the financial year 2023. Nor
has Skanska been subject to any rulings by
Nasdaq Stockholm’s Disciplinary Committee
or decisions on breach of good practices inthe stock market by the Swedish Securities
Council in 2023.

Nomination Committee

Shareholders, through the
General Meeting of shareholders

External auditors

Board of Directors

Audit Committee

President and CEO,Group Leadership TeamInternal Audit
and Compliance

Compensation Committee

Project Review Committee

Group functions

Construction

Residential Development

Commercial Property
Development

Investment Properties

Key external governing documents• Swedish Companies Act• Nasdaq Nordic Main Market Rulebook for Issuers of Shares• Swedish Corporate Governance Code• Swedish Annual Accounts Act• Swedish Securities Market Act• Applicable EU legislation• International Financial Reporting Standards (IFRS) and other accounting rules• Global Reporting Initiative (GRI) Standards

Key internal governing documents• Articles of Association, which are available on the Group website• Procedural Rules for the Board and its Committees• Instructions for the President and CEO• Group steering documents, including Group policies, standards and procedures,
guidelines, and business processes for approval, control and risk management• The Skanska Code of Conduct, which is available on the Group website

Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Shares and shareholders
Skanska’s Class B shares are listed on
Nasdaq Stockholm in the Large Cap
segment. The share capital at the endof 2023 amounted to SEK 1,259,709,216
consisting of a total of 419,903,072 shares,of which 19,619,942 were Class A shares and400,283,130 were Class B shares. Class A
shares entitle the holder to 10 votes per shareand Class B shares entitle the holder to one
vote per share. There are no other restrictionsin the Articles of Association on the number ofvotes each shareholder may cast at a General
Meeting. Class A shares and Class B shares
entitle the holder to the same dividend.

salary and other remuneration to senior
executives are adopted by the AGM at
least every four years, while the Board’s
remuneration report is submitted to the AGM
yearly for approval.

81

Group overview
Operations
Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

At the end of 2023, Skanska had a total of
117,706 shareholders, according to ­statistics
from Euroclear Sweden AB. The 10 largest
shareholders held 58.5 percent of the votes and42.9 percent of the capital. AB ­Industri­värden’s
holding amounted to 24.5 percent of the votes,
Lundberg Group’s holding to 13.2 percent of thevotes and AMF Tjänstepension & AMF Fonder’sholding to 5.6 percent of the votes. Further
information on the Skanska share andshareholders, including the Company’s
holdings of Class B treasury shares, isavailable on pages 221–222.

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General Meetings of shareholders
The General Meeting is Skanska’s highest
decision-making body and it is where
shareholders exercise their decision-making
rights. At the Annual General Meeting (AGM),
the shareholders decide on key issues, suchas adoption of income statements andbalance sheets, the dividend, the compositionof the Board, discharging the members of
the Board and the President and CEO fromliability, board fees and auditor fees, andelection of external auditors. Guidelines for

Skanska’s financial year is from January 1
to December 31, and the AGM is to be held
within six months of the end of the financial
year. The date and venue for the AGM arecommunicated on the Group website nolater than in conjunction with the publishingof the third-quarter interim report. The
notice convening the AGM is published in
Post- och Inrikes Tidningar (the Official
Swedish Gazette) and on the Group website.
An announcement of the notice convening
the meeting is published in Dagens Nyheter
and in at least one more Swedish daily
newspaper. All documents relating to the
AGM are published on the Group website
in both Swedish and English. Shareholders
listed in the register of shareholders on therecord date and who notify the Company of
their intention to participate in the meetingare entitled to attend it either personally orby proxy through a representative. According
to the Articles of Association, the Board may
decide that shareholders shall be entitled toexercise their voting rights by post before theAGM. Shareholders have the right to havematters addressed at the AGM if they havesubmitted a request to the Board no later thanseven weeks before the AGM.
Annual General Meeting 2023
The AGM 2023 was held on March 29, 2023,
in Stockholm. A total of 1,051 shareholders,
representing approximately 64.9 percent of
the total number of votes, were represented
at the AGM. The shareholders also had the­opportunity to exercise their voting rights

at the AGM by voting in advance, so-called
postal voting. At the AGM, the following
resolutions were made, among others:• Payment of a dividend of SEK 7.50 per share• Re-election of Hans Biörck, Pär Boman,
Jan Gurander, Mats Hederos,Fredrik Lundberg, Catherine Marcus,
Ann E. Massey and Åsa Söderström
Winberg as members of the Board• Re-election of Hans Biörck as Chairmanof the Board• Re-election of Ernst & Young AB asexternal auditor• Approval of the Board’s remuneration
report for 2022
• Adoption of guidelines for salary and other
remuneration to senior executives• Authorizations for the Board to, during theperiod until the AGM 2024, (i) resolve on
acquisitions of not more than 3,500,000
own Class B shares on Nasdaq Stockholm
to secure delivery of shares to participantsin the Skanska employee ownershipprogram for the financial years 2023, 2024
and 2025 resolved by the AGM 2022 (Seop6); and (ii) resolve on acquisitions of such
number of own Class B shares on Nasdaq
Stockholm that the Company’s holdingof own shares after each acquisition
amounts to a maximum of one-tenth of
the total number of shares in the Company
to give the Board increased freedom ofaction to be able to adapt the Company’s
capital structure and thereby contribute toincreased shareholder value
Complete information on the AGM 2023
and the minutes of the meeting are available
on the Group website: group.skanska.com/
corporate-governance/shareholders-meeting/agm-2023/.

Annual General Meeting
2024
Skanska’s AGM 2024 will be held on
Wednesday March 27, 2024 at 10.00
a.m. CET in Stockholm, Sweden at
Stockholm Waterfront Congress Centre,
Nils ­Ericsons Plan 4. S
­ hareholders will
also have the opportunity to exercise
their voting rights by postal voting
prior to the AGM. Further information
is available on page 223 and on theGroup website: group.skanska.com/­
corporate-governance/shareholdersmeeting/agm-2024/.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

The Nomination Committee
The AGM 2018 gave the Chairman of theBoard a mandate to, prior to each AGM,
ask the four l­argest shareholders in termsof voting rights, that wish to participate in
the Nomination Committee, to appoint one
representative each to serve together with
the Chairman as the Nomination Committee.
In d­ etermining which are deemed to be thelargest share­holders in terms of voting rights,
the list of shareholders registered with andcategorized by Euroclear Sweden AB as ofthe last banking day in August each year is
to be used. The member of the Nomination
Committee representing the largest
shareholder in terms of voting rights is to beappointed as Chairman of the Nomination
Committee.

The applicable instruction to the Nomination
Committee is available on the Group website:group.skanska.com/corporategovernance/shareholders-meeting/nomination-committee/.

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Group Leadership Team

Remuneration report
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Financial information

The Nomination Committee’s tasks include:• Evaluating the composition of the Boardand its work
• Preparing proposals to submit to the AGM
regarding the election of board members
and the Chairman of the Board• Working with the Board’s Audit Committee
to prepare proposals to submit to the AGM
regarding the election of auditors• Preparing a proposal to submit to the AGM
on fees to the Chairman of the Board and tothe other AGM-elected board ­members forboard work and for work in the ­committeesof the Board, as well as fees to the auditors• Preparing a proposal to submit to the AGM
regarding a Chairman of the AGM• When applicable, preparing a proposal onchanges to the principles for appointing thenext Nomination Committee

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1 Based on shareholding as of August 31, 2023.

Nomination Committee for the AGM 2024
The Nomination Committee for the AGM 2024
has the following composition:• Helena Stjernholm, AB Industrivärden
(24.5 percent of the votes1), Chairmanof the Nomination Committee• Katarina Martinson, Lundberg Group
(13.2 percent of the votes1)• Dick Bergqvist, AMF Tjänstepension& AMF Fonder (5.6 percent of the votes1)• Malin Björkmo, Handelsbanken Funds(1.9 percent of the votes1)• Hans Biörck, Chairman of the Board,
Skanska AB
The composition of the Nomination
Committee and information on how
shareholders can submit proposals to theNomination Committee ahead of the AGM
2024 was published on the Group website andannounced in a press release on September
25, 2023. According to the Code, the majorityof the Nomination Committee’s members areto be independent in relation to the Company
and its senior executives and at least one
member is also to be independent in relation
to the largest shareholders in the Company
in terms of voting rights. All of the appointed
members are independent in relation to theCompany and its senior executives and three
are independent in relation to the largest
shareholders in the Company in terms ofvoting rights.

In preparation for the AGM 2024, theNomination Committee has held four
meetings at which minutes were kept. No fee
has been paid for the work of the Nomination
Committee. In its work ahead of the AGM
2024, the Nomination Committee was, among
other things, presented with the result of
the evaluation of the Board’s work and the
Chairman of the Board's report on the Board’s
work. The Nomination Committee has alsointerviewed two members of the Board.
Furthermore, Skanska’s President and CEO
and CFO have attended a meeting of theNomination Committee for a presentation of
the Company’s operations.
Diversity policy
In its work ahead of the AGM 2024, theNomination Committee has assessed thecomposition and size of the current Board
as well as Skanska’s operations. It has been
the Nomination Committee’s objective tomaintain the diversity and breadth of theBoard, particularly considering Skanska’s
operations within project development andconstruction in an international context andSkanska’s focus on sustainability matters.
The Nomination Committee has further
considered that it would benefit the Board toinclude a person with experience from the UK
or US construction industry, and a person with
operational experience from a large Swedish
listed company and competence in industrial
processes, quality work and sustainability
matters.
For the composition of the Board, theNomination Committee has applied therules on the composition of the Board thatare found in the Code. The Nomination­ ommittee has applied rule 4.1 of the CodeC
as diversity policy. The objectives of thediversity policy are that the Board is to havea composition appropriate to the C­ ompany’s
operations, phase of development and otherrelevant c­ ircumstances, that the board
members ­elected by the General Meeting arecollectively to exhibit diversity and breadthof qualifications, experience, backgroundand need for renewal, and that a genderbalance on the Board is to be strived for. The
Nomination Committee considers that suchdiversity and breadth is represented among
the proposed board members. Three out ofnine of the proposed board members are
women. The gender balance is therefore
33 percent women and 67 percent men. The
Nomination Committee further assesses thatthose fields of competence and experience
considered important to Skanska are well
represented in the proposed Board and thatthe composition and size of the proposed
Board is appropriate to meet Skanska’sneeds. The Nomination Committee has
also assessed that the proposed board
members will be able to devote the necessary
time ­required to fulfill their tasks as board­members in Skanska. The Nomination
Committee has assessed that the proposed
Board meets the requirements in the Coderelating to board members’ independence.
The Nomination Committee’s complete
proposals to the AGM 2024, its report on its
work and motivated statement ahead of theAGM 2024, and information on proposedboard members, are available on the Groupwebsite: group.skanska.com/corporategovernance/shareholders-meeting/agm2024/.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Board of Directors
According to the Articles of Association,
the Board, with regard to members electedby shareholders at a General Meeting,shall consist of not fewer than five and not
more than 10 members. The Articles of
Association contain no provisions regarding
appointment or dismissal of board members
or amendments to the Articles of Association.

annual reports, major construction projects,
investments and divestments, appointmentof the President and CEO, and mattersconcerning the organizational structure of
the Group. The Chairman leads the Board
in its work and has regular contact with the­President and CEO in order to stay informed
about the Group’s activities and development.

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Group Leadership Team

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Financial information

The Board has overall responsibility for­Skanska’s organizational structure andmanagement, and the Board’s main duty is tosafeguard the interests of the Company andshareholders. The Board makes decisions
regarding the Group’s strategy, interim and

The current Board consists of eight members
elected by the shareholders at the AGM
2023 for the period until the end of the AGM
2024, and three members and three deputy
members appointed by the trade unions.
According to the Code, the majority of theBoard’s AGM-elected members are to be

independent in relation to the Company
and its senior executives, and at least two
members are to also be independent inrelation to the major shareholders in the
Company. All of the board members electedby the AGM 2023 are independent in relation
to the Company and its senior executives. Of
these, six members are also independent inrelation to the ­Company’s major shareholders.
The composition of the Board as ofDecember 31, 2023, and an assessment of the
independence of each member are presented
in the table below and on pages 90–91.

Members and deputy members of the Board as of December 31, 2023
Compensation
Committee

Project Review
Committee

Independent inrelation to theCompany’s major
shareholders

MemberPosition

Elected,year

Hans Biörck1

Chairman

2016

Yes

Yes

Pär Boman1

Member

2015

Yes

No

Jan Gurander1

Member

2019

Yes

Yes

Mats Hederos1

Member

2022

Yes

Yes

Fredrik Lundberg1

Member

2011

Yes

No

Catherine Marcus1

Member

2017

Yes

Yes

Ann E. Massey1

Member

2022

Yes

Yes

Åsa Söderström Winberg1

Member

2020

Yes

Yes

Ola Fält2

Employee Representative

2018

–

–

Richard Hörstedt2,3

Employee Representative

2007

–

–

Yvonne Stenman2

Employee Representative

2018

–

–

Goran Pajnic2,4

Employee Representative (Deputy)

2022

–

–

Hans Reinholdsson2

Employee Representative (Deputy)

2020

–

–

Anders Rättgård2

Employee Representative (Deputy)

2017

–

–

= Chairman

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Audit
Committee

Independent inrelation to theCompany and its
senior executives= Member

1 Nominated by the Nomination Committee for the AGM 2023 and elected by the shareholders at the AGM 2023 for the period until the end of the AGM 2024.
2 Nominated and appointed by the trade unions.
3 Deputy member of the Project Review Committee for Anders Rättgård.
4 Until January 31, 2024. Was succeeded by Fredrik Norrman as deputy board member (employee representative) from February 1, 2024 in accordance with a decision by the trade union (see page 91).

The work of the Board in 2023
The work of the Board follows an annual
agenda established in the Board's Procedural
Rules, which are reviewed and approved by
the Board each year at the statutory board
meeting. Among other things, the Procedural
Rules outline rules for the distribution oftasks among the Board, the committees of
the Board and the President and CEO. The
Board’s work is m
­ ainly performed within theframework of formal board meetings andthrough meetings in the Board's committees.
To ensure that the Board has the relevant
information and documentation on which
to base decisions, the Board receives, in
preparation for each board meeting, reports
and documentation compiled according toestablished procedures.
In 2023, the Board held seven ordinary
meetings, including its statutory meeting,and one extra meeting per capsulam (byunanimous written consent). For attendanceat board meetings and committee m­ eetings,
see the table on page 84. The more important
issues dealt with by the Board during theyear included monitoring operations, review
and approval of the interim reports andyear-end report, strategic review of ­Skanska,
as well as cybersecurity, internal control, risk
management, compliance, and sustainability
matters, including climate, ethics and healthand safety. The Board received ­regular
updates on the impact of the war in Ukraine
and macroeconomic developments on theGroup’s business and the markets where
Skanska is active.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Evaluation of the work of the Board
The work of the Board is evaluated ­annually
through a structured process aimed at­improving work processes, efficiency and­collective expertise, and to assess any needfor change. The Chairman of the Boardis ­responsible for the evaluation and forpresenting the result of the evaluation to theBoard and the Nomination Committee.

by another board member appointed for the
purpose. The o­ utcome of the 2023 evaluation
was that the work of the Board was deemed
to be functioning well.

Chairman of the Project Review C­ ommittee
and the other members of the committee.
Further information is available in Note 37 on
pages 181–186.

Board fees
The AGM 2023 resolved, in accordance with
the Nomination Committee’s p­ roposal, on feesto the Chairman of the Board and to the other
AGM-elected board members not ­employed
by Skanska as follows: SEK 2,325,000 to the
Chairman of the Board; SEK 775,000 eachto the other board members; SEK 280,000
to the Chairman of the Audit Committee and
SEK 195,000 each to the other members of
the committee; SEK 115,000 to the Chairmanof the Compensation Committee and
SEK 110,000 each to the other members of
the committee; SEK 225,000 each to the

The Board’s committees
The Board is ultimately responsible for the­­organization and management of Skanska’s
operations. The overall responsibility of theBoard cannot be delegated, but the Board
may appoint committees to do preparatory
work and explore certain issues in preparation
for decisions by the Board.

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In 2023, an evaluation was carried out inthe form of a questionnaire and individual
conversations between the Chairman
and each member of the Board, as well as
through discussion at board meetings. The
Chairman was also evaluated through awritten questionnaire and discussion with
the Board without the Chairman present; theboard meeting on this occasion was chaired

Attendance at board and committee meetings in 2023
Board

Audit
Committee

Compensation
Committee

Project Review
Committee

81

6

61

12

Hans Biörck

8

6

6

12

Pär Boman

8

6

5

12

Jan Gurander

8

6

6

12

Mats Hederos

812Fredrik Lundberg

7

10

Catherine Marcus

812

Ann E. Massey8

Åsa Söderström Winberg

8

Ola Fält

8

Richard Hörstedt2)

8

Yvonne Stenman

8

Goran Pajnic

3Hans Reinholdsson

7

Anders Rättgård

7

Number of meetings
MemberDownload PDF for print

12
6

1 Of which one meeting was an extra meeting held per capsulam (by unanimous written consent).
2 Deputy member of the Project Review Committee for Anders Rättgård.

12

12

The Board has formed three committees
to provide structure, improve efficiency
and ensure the quality of its work: (i) Audit­Committee, (ii) Compensation Committee and(iii) Project Review Committee. The membersof the committees are appointed annuallyat the statutory meeting of the Board. The
Board’s Procedural Rules specify which duties
and decision-making powers have beendelegated to the committees. The Chairmanof each committee reports orally to the Boardat each board meeting and all minutes fromthe committee meetings are submitted to
the Board.
Audit Committee
The main task of the Audit Committee
is to assist the Board in overseeing theaccounting and financial reporting processesof the Group and the audits of the financial
statements of the Group, as well as othermatters under applicable legislation. Amongother things, the committee monitors thequality and integrity of the Group’s financial
reporting, and the effectiveness of theGroup’s internal control, internal audit and risk
management. The committee also oversees
the Group’s compliance with legal andregulatory requirements having a material
impact on the financial statements, andthe reports from and relationship with theexternal auditors, including the safeguardingof their impartiality and independence.
Furthermore, the committee reviews anddiscusses with the external auditors the yearly
audit procedures and the major findings
during the audit, and establishes guidelines
regarding the non-audit services provided
by the external auditors. At least once a year
the committee meets the external auditors
without senior executives being present.
In 2023, the Audit Committee consistedof Pär Boman (Chairman), Hans Biörck,Jan G­ urander and Åsa Söderström Winberg.
The composition of the committee meets the­requirements in the Code relating to audit
committee members’ independence. All­members have accounting or auditing skills.
The committee held six meetings in 2023.
Important matters addressed during the year
included capital allocation, financing, pension
reporting, external reporting, impairment
testing, valuation of construction and project
development projects, larger disputes, reviewof the interim reports and year-end report,internal control, risk ­management andcompliance matters.
Compensation Committee
The main tasks of the Compensation
Committee include preparing
recommendations for decisions by the
Board on the Skanska employee ownershipprograms, the appointment or dismissal of
the President and CEO or any of the othermembers of the Group Leadership Team, andthe salary and other remuneration for the
President and CEO.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

The committee resolves on salary and other
remuneration for the other members of theGroup Leadership Team based on a proposal
from the President and CEO. The committee
also examines the outcomes of variable
remuneration components.

remuneration programs for the senior
executives, review and evaluation of theapplication of the guidelines for salary andother remuneration to senior executives
adopted by the AGM 2020 and revisedby the AGM 2023 as well as the existing
remuneration structures and levels in the
Company, and review of senior e­ xecutives’
other assignments. The ­committee also
reviewed and prepared, for resolution by the
Board and subsequent referral to the AGM
2024 for adoption, a remuneration reportfor 2023, detailing paid and outstanding
remuneration that is covered under the
remuneration guidelines. Furthermore, in
relation to review of Seop 6, the committee
discussed the outcome for 2023 of the Seop
6 specific performance targets set by the
Board. Seop 6 is the first Skanska e­ mployee
ownership program that supplements thegrowth in Earnings Per Share target at Grouplevel with a climate target at Group level85Group overview
Operations
Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

In 2023, the Compensation Committee
consisted of Hans Biörck (Chairman),
Pär Boman and Jan Gurander. The Coderequirements regarding independence,
according to which the Chairman of the Board
may be the Chairman of the Compensation
Committee and other AGM-elected members
are to be independent in relation to theCompany and its senior executives, havetherefore been met.
The committee held five ordinary meetings in
2023 and one extra meeting per capsulam.
Important matters addressed during theyear were review of Skanska’s variable

linked to the Group’s reduction of carbon
emissions within scope 1 and scope 2.
Further information on Seop 6, including theconditions on which the outcome depends,
is available on the Group website: group.
skanska.com/corporate-governance/
remuneration/incentive-programs/.
Project Review Committee
The Project Review Committee takes decisions
on individual projects within the Construction,
Residential Development, Commercial
Property Development and Investment
Properties business streams, that require
the Board's a­ pproval, and on certain project­financing packages. Projects that involve­especially high or unusual risks or other special­circumstances may be referred to the Board
for a decision, and such referrals are to include
a recommen­dation from the committee.

Skanska’s reporting structure

Operating unit

External reporting

Residential Development
Operating unit

External reporting

SwedenNorwayFinlandCommercial Development Nordic
Central Europe
United Kingdom
Commercial Development Europe
Residential Development Europe
USA Civil
USA Building
Commercial Development USA
BoKlok1= Operating unit

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External auditors
At the AGM 2023, the registered accounting
firm Ernst & Young AB was re-elected as theCompany's external auditor for the period
until the end of the AGM 2024. Authorized
Public Accountant Rickard Andersson is theauditor in charge. The external auditors haveattended two board meetings to report on
the auditing process of Ernst & Young AB for
Skanska and to provide the members of theBoard with an ­opportunity to ask questions
without senior executives being present. The
external auditors have also attended fivemeetings of the Audit Committee. Information
on fees and other remuneration to theexternal auditors for audit-­related and otherservices is set out in Note 38 on page 186.

Business Streams
Construction

Operating units

In 2023, the committee consisted of all
AGM-elected board members and employee
representative Anders Rättgård. The
committee held 12 meetings in 2023.

= External reporting

1 BoKlok has operations in Sweden and the UK. In the external reporting BoKlok is divided and included in the Nordic cluster, with a specific entry for Sweden, and Europe.

Commercial Property Development
Operating unit

External reporting

Investment Properties
Operating unit

External reporting

Contents

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

86Group overview
Operations
Sustainability report

Operational management and internal­governance
We operate with a decentralized
governance model that recognizes the
local characteristics of the construction
and develop­ment markets, empowering thebusiness units to develop their business anddeliver­­according to plan, while retaining the
profit and loss responsibility.

Skanska’s management structureGroup Leadership Team

Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Anders Danielsson, President and CEO
Magnus Persson
EVP, CFO

Caroline
Fellenius-Omnell
EVP, General Counsel

Finance

Legal

Reporting andAccounting

Assurance andControlRemuneration report
Risk and opportunity management
Financial information

Richard Kennedy
EVPStåle Rød
EVP

Claes Larsson
EVP

Therese Tegner
EVP

Lena Hök
EVP

Human
Resources

Sustainability
and Innovation

Communications

Skanska
USA Building

Skanska
Central Europe

Skanska Commercial
Development Nordic

Skanska
USA Civil

SkanskaUK

Skanska Commercial
Development Europe

SkanskaFinlandSkanskaFinancial
Services

Skanska
NorwaySkanska Commercial
Development USA

Skanska
SwedenInvestor
Relations

Skanska Residential
Development Europe

Financial
Support andAnalysis

BoKlokHousing

Information
Technology

Internal Audit
and Compliance

AssetManagement1)

1 Portfolio of PPP assets.

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Core corporate
function

Business unit/
Operating unitGroupfunction

Reports directly
to the Board

Our strategy and targets are set at Grouplevel to ensure effective financial ­capacity
and conduct proper follow-up on business
unit performance and compliance. In
the decentralized governance structure,requirements are established at Group level,
while the business units are responsible for
how requirements are met.
Each business unit is headed by a president
and has its own administrative functions andother resources to conduct its operations­effectively. Aside from day-to-day operations
managing projects, the business units
deal with matters such as their strategic
development, business plans, investments,
divestments and organization.
Information on our strategy, business modeland business streams is available on pages
15–16 and 22–38.
The President and CEO and the Group
Leadership TeamThe President and CEO is appointed by the
Board and runs the Company and the Groupin accordance with the instructions a­ doptedby the Board. The President and CEO is­responsible for the day-to-day managementof the operations of the Company and
the Group, and is supported by the othermembers of the Group Leadership Team.

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Part of the Board of Directors' Report

The work of the President and CEO isevaluated at one board meeting each year atwhich no senior executives are present. The
President and CEO has no business dealingsof any significance with the Company or its
Group ­companies.

Group Leader­ship Team. Information on
remuneration to the President and CEO isalso set out in the Board's remuneration
report for 2023 a­ vailable on pages 94–98.

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Information on the President and CEO andthe other members of the Group Leadership
Team can be found on pages 92–93.
Core corporate functions and groupfunctionsCore corporate functions and group functions
are based at Skanska's headquarters in
Stockholm. The core corporate functions andgroup functions assist the President and CEO
and the Group Leadership Team on mattersrelating to group-wide functions, coordinationand oversight. They also provide support tothe business units. The head of each groupfunction reports directly to a member of theGroup Leadership Team. The head of groupfunction Internal Audit and Compliancereports directly to the Board by way of the
Audit Committee. A presentation of the core
corporate functions and group functions canbe found on page 86.
Remuneration to senior executives
Guidelines for salary and other remuneration
to senior executives shall be adopted by
the AGM at least every four years based ona ­proposal from the Board. The applicableremuneration guidelines were ­adopted by theAGM 2023. The guidelines and information
about salary and other ­remuneration to senior
executives, as well as outstanding shareaward and share-­related incentive programs,
are found in Note 37 on pages 181–186. ­Senior executives include the President
and CEO and the other members of the

Purpose and values
Together with our customers and partners,
we are building for a better society, creating
innovative and sustainable solutions that
support living beyond our lifetime. And as
we do so, we build long-term value for ourshareholders and society at large.
The way we conduct business, and ourstrategy, remains firmly grounded in ourvalues: Care for life, Act ethically andtransparently, Be better together, and Commit
to customers. We harness our strengths andassets into long-term, sustainable business
opportunities that generate growth, customer
success and shareholder value. Further
information on our values is available on theGroup website: group.skanska.com/about-us/
who-we-are/our-purpose-and-values/.
Code of Conduct
The Code of Conduct is based on our values
and sets the standard for the daily behaviorof employees and the way we do business. It
is reviewed regularly by the Group Leadership
Team and updates are approved by the Board.
It defines our commitments in the workplace,in the market and to society. It covers topics
Group policies
Core mandatory operating rules of theGroup, addressing risks, goals and where
corporate governance is required.

such as health and safety, diversity andinclusion, data ­protection, environment,­confidentiality, ­conflicts of interest, fraud,
fair c­ ompetition, anti-bribery and corruption,and insider ­information and market abuse.
Employees are ­required to uphold theprinciples and requirements contained in the
Code of Conduct. All employees are required
to complete Code of Conduct training every
two years, and new employees within one
month of starting work.
The Code of Conduct is supplemented by
the Supplier Code of Conduct, which must
be adhered to by subcontractors, suppliers,
consultants, intermediaries and agents. It is
included in agreements with these parties
and outlines our expectations on those we dobusiness with. The Supplier Code of Conduct
covers topics such as environment, health andsafety, fair working conditions, discriminationand harassment, anti-bribery and corruption,
sanctions and fair competition.
The Code of Conduct and the Supplier
Code of Conduct can be found on the Groupwebsite: group.skanska.com/corporategovernance/our-code-of-conduct/.
The Code of Conduct Hotline provides amechanism for employees, suppliers’ employees
and other third parties to anonymously reporton breaches or suspected breaches of theGroup procedures and standards
Mandatory. Procedures are generally
detailed step-by-step instructions toachieve a given goal, while standards
indicate expected behavior or a minimum
level of quality or a minimum standard.

Code of Conduct. The hotline is managed byan independent third-party service provider
and is a supple­ment to the numerous speak-up
options within the Group which employees
and third parties are encouraged to use.
Governance framework
The Group governance framework is set at
Group level. The Group Leadership Teamand the core corporate functions and groupfunctions are responsible for following up
on its implementation and operation in
the business units. The Group governanceframework consists of three categories ofsteering documents: Group policies andGroup procedures and standards, which
are mandatory, as well as non-mandatory
guidelines for the Group.
A clear framework of policies, procedures
and standards reduces risks and ­increases
effectiveness. It also makes it easier to liveby the Code of Conduct and the Skanska
values. The Group steering documents define
how our operations are run, controlled and­organized, which standards and processes
to work according to, how to manage risks,
at what levels decisions are made andwhat is ­mandatory for the business units.
The governance framework is applicableto the Company, all business units and all
employees. If not followed, there may beconsequences, up to and including dismissal.
Group guidelines
A non-binding document containing
guidance for the organization.

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

The business units are required to establish
and maintain a robust and well-functioning
system of governance within their operations.
Business units’ governance systems, such aspolicies and management systems, should
complement and add local, practical detailto the steering documents in the Group
governance framework. The Business Unit
President is responsible for implementationof the Group governance framework in each
respective business unit.

Sustainability
Sustainability is an enabler for our businessstrategy, a key component for success for us
and our customers. Our sustainability strategy
focuses on the areas of Responsibility,
Climate and Resilience. The Board is informed
quarterly of our sustainability performancewithin climate and health and safety. Our risk
assessment on pages 99–105 and disclosure
according to the Task force on Climaterelated Financial Disclosures (TCFD) on
pages 76–77, assesses sustainability relatedrisks for the organization. Further informationon our sustainability work is available inthe sustainability report on pages 40–78.
Information on our climate targets is available
on page 11.

Internal control
This section includes the most importantelements of our internal control and risk
management systems in connection withfinancial and sustainability reporting. A­description of our sustainability reporting
principles is set out on page 78.

To further integrate carbon emission
reductions into the business, the AGM 2022
resolved, in accordance with the Board’s
proposal, to include an emission reduction
target in our own operations (scope 1 and 2)
in Seop 6. For the top 400 leaders, up to
15 percent of performance shares in Seop 6
is linked to how well the annual climate targetof a 7 percent carbon emission reduction in
our own operations is achieved at Group level.
In addition, for 2023, the Group Leadership
Team has set activity-based sustainability
targets, including climate, as part of theshort-term incentive programs for all Business
Unit Presidents. Activity-based targets inthe short-term incentive program for the
President and CEO include, for 2023, targets
related to Skanska's climate target. Further
information on the application of performance
criteria for the President and CEO's variable
remuneration is available in the Board's
remuneration report on page 97.

The Board’s Procedural Rules ensure a clear
division of roles and responsibilities for the
purpose of ensuring effective managementof business risks. The Board and the Group
Leadership Team have also adopted anumber of fundamental rules of importancefor internal control work, such as the Group’s
Enterprise Risk Management Policy and theGroup's Governance Procedure. The Group
Leadership Team reports regularly to theBoard according to established routines.
The Audit Committee also presents reports
on its work. The Group Leadership Team is
responsible for the system of internal controls
required to manage material operationalrisk. This includes a clear decision-making
structure and the Group framework of policies,
standards and procedures, and guidelines.
Group function Assurance and Control
supports the Group Leadership Team indrafting and monitoring the system of internal
control.

88

Group overview
Operations
Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

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The Board's Procedural Rules state which
items of business will be decided upon by
the Board, by the President and CEO, by theGroup Leadership Team, or at the business
unit level. In addition to the Board’s P­ rocedural
Rules, and ­Skanska’s Code of Conduct andSupplier Code of Conduct, Group policies
include:• Anti-Corruption Policy• Claims Management Policy• Enterprise Risk Management Policy• Finance Policy• Human Resources Policy• Information Policy• Innovation Policy• Insider Policy• IT Policy• Personal Data Protection Policy• Sustainability Policy• Tax Policy

Control environment
The Board has overall responsibility forensuring that Skanska has effective andadequate risk management and internal
controls. The purpose is to provide a
reasonable assurance that the operations arerun appropriately and efficiently, that externalreporting is reliable, and that laws andregulations and internal rules are complied with.

Risk assessment and control activities
We have at Group level identified the material
risks in our operations that could, if not
managed ­correctly, lead to errors in financialand ­sustainability reporting and/or have an
impact on the Group’s performance results.
We have subsequently at Group level ensured
that the Group has rules in place to guaranteethat these risks are managed. The Group
Leadership Team and the core corporate
functions and group functions are responsible
for managing general risks relating tostrategy, macroeconomics and regulatory
frameworks, while the main tasks relating tooperational risk and opportunities are carriedout at the local level within the business
units. A detailed description of the identified
enterprise risks and how they are managed isfound on pages 99–105.
We use a Group-wide procedure for
identifying and managing risks ­associatedwith construction contracts and project­development. A specialized group unit, theSkanska Risk Team, examines and analyzes
proposals for tenders in construction andland investments, project starts as well as­divestments in Project Development above acertain size. Based on the identified risks andopportunities, the Skanska Risk Team thenissues a recommendation on how to proceed.
The final decision is made by the Skanska
Tender Board, which consists of the Group
Leadership Team, and, in certain cases, theProject Review Committee, which consists ofboard members.

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Annual and Sustainability Report 2023

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Risks and opportunities for improvement areboth greatest during the actual execution
phase of the projects, and the work focusesheavily on this phase. Since almost every
project is unique, risks and opportunities must
be analyzed with respect to project type,location, execution phase, contract type andcustomer. During execution, projects over a
set threshold must adhere to the Skanska
Project Reporting and Review Procedure toensure consistent project reviews, including
a process to make sure that deviations fromplanned performance are detected and acted
upon early. All business units employ common
valuation principles and terminology to ensure
conservative ­project valuation and a high levelof performance transparency.

address the shortcomings ­revealed in internaland external audits and to implement the
proposed actions.

89Group overview

Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

Information and communication
Significant accounting principles, manuals
and other documents of importance infinancial and sustainability reportingare ­updated and information on them is­communicated regularly. There are several
information c­ hannels to the Group Leadership
Team and the Board for important information.
For our ­external communication, we have aGroup Information Policy to ensure that wecomply with existing regulations on p
­ roviding
the market with accurate information.
Monitoring
The Board continually evaluates theinformation provided by the Group
Leadership Team and the Audit Committee.
Of particular i­mportance is the result of
the Audit Committee’s work on monitoring
the effectiveness of the Group LeadershipTeam’s internal control processes. This
includes ensuring that steps are taken to
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Internal Audit and ComplianceGroup function Internal Audit and Com­plianceis responsible for monitoring and eva­luating
how risk management and internal control
processes have been carried out. The workis planned in consul­ta­tion with the Audit
Committee and reporting takes place
directly to the Board through the committee.
Matters relating to i­nternal audit are also
communicated on an ongoing basis to theexternal auditors.
In 2023, I­­nternal Audit and Compliance­f­ocused on r­ eviewing the risks identified­relating to the Group’s projects, businesscritical processes and key corporate
functions. A total of 76 ­audits were c­ onductedduring the year within all business units.
There was a particular focus on the business
operations of commercial ­development­investments and supply chain resilience forthe construction units. The business units’
and core corporate function Sustainability
and Innovation’s management, processes
and reporting within the area of climate werealso reviewed. The a­ udits were p­ erformed inaccordance with a uniform audit method.

Seaport Office Boston USA

Operations

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Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

Part of the Board of Directors' Report90

Board of Directors
Board members elected by the AGM 2023

Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

Download PDF for print

Hans Biörck

Pär Boman

Jan Gurander

Mats Hederos

Fredrik Lundberg

Position

Chairman

Board member

Board member

Board member

Board member

Born

Sweden, 1951

Sweden, 1961

Sweden, 1961

Sweden, 1957

Sweden, 1951

Elected

2016

2015

2019

2022

2011

Shareholding in
Skanska, December
31, 2023

25,000 Class B shares through privately
owned company

1,000 Class B shares

5,000 Class B shares

2,000 Class B shares

6,032,000 Class A shares and16,350,000 Class B shares through
L E Lundbergföretagen AB,
1,150,000 Class B shares through privately
owned company,
5,376 Class A shares and 1,100,000 Class B
shares privately

Other board
assignments– Board member, Handelsbanken AB– Chairman, Handelsbanken AB– Chairman, Essity AB– Chairman, Svenska Cellulosa
Aktiebolaget SCA– Vice Chairman, AB Industrivärden

– Board member, Essity AB– Chairman, Qarlbo Property AB– Board member, Antilooppi Oy– Board member, Cirkus Venues AB– Board member, Silver Life AB– Chairman, AB Industrivärden
– Chairman, Holmen AB– Chairman, Hufvudstaden AB– Vice Chairman, Handelsbanken AB– Board member, L E Lundbergföretagen AB

Education– Master of Science in Business andEconomics, Stockholm School of
Economics– Engineering and Business/Economics
degree, Honorary Ph.D. in Economics– Master of Science in Business andEconomics, Stockholm School of
Economics– Master of Science, Royal Institute ofTechnology, Stockholm– Executive Programme in Resilience
Thinking, Stockholm Resilience Center,
Stockholm University–M .Sc. Engineering, Royal Institute ofTechnology, Stockholm– Master of Business Administration (M.B.A),
Stockholm School of Economics– Dr. (Econ.) h.c., Stockholm School of
Economics– Dr. (Eng.) h.c., Linköping University– Dr. (Med.) h.c., Karolinska Institutet

Work experience– CFO, Skanska AB– CFO, Autoliv AB– CFO, Esselte AB– President and CEO, Handelsbanken AB– Deputy CEO, AB Volvo– Deputy CEO and CFO, AB Volvo– CFO and Senior Vice President Finance,
Volvo Car Group– CFO, MAN Diesel & Turbo SE– Group Vice President and CFO, Scania AB– CEO, AMF Fastigheter– Head of Property, AMF Pension– Transaction Manager, AP Fastigheter(today Vasakronan)– Investment Banker, Enskilda Securities, SEB– President and CEO,L E Lundbergföretagen AB (since 1981)

Dependency
relationship in
accordance with theSwedish Corporate
Governance Code– Independent in relation to the Company
and its executive management– Independent in relation to major
shareholders– Independent in relation to the Company
and its executive management– Dependent in relation to major
shareholders– Independent in relation to the Company
and its executive management– Independent in relation to major
shareholders– Independent in relation to the Company
and its executive management– Independent in relation to major
shareholders– Independent in relation to the Company
and its executive management– Dependent in relation to major
shareholders

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Annual and Sustainability Report 2023

Part of the Board of Directors' Report

91Group overview
Operations
Sustainability report

Board members and deputies appointed by the trade unions1

Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

Download PDF for print

Catherine Marcus

Ann E. Massey

Åsa Söderström Winberg

Position

Board member

Board member

Board member

Born

USA, 1965

USA, 1954

Sweden, 1957

Elected

2017

2022

2020

Shareholding in
Skanska, December
31, 2023

0 shares0 shares2,500 Class B shares privately,
3,000 Class B shares through privately
owned company,
2,500 Class B shares through related
personOther board
assignments– Board member, PREA
– Board member, Interface Inc.

– Board member, Kleinfelder Inc.
– Board member, Wood Programs– Board member, Gresham Smith− Board member, OEM International AB− Board member, Fibo AS− Board member, Currentum Group AB

Education– M.S., Real Estate Investment andDevelopment, New York University– B.S.E. Real Estate Finance andEntrepreneurial Management, Wharton
School, University of Pennsylvania– M.B.A., Business Administration,
Tennessee Technological University– B.S., Geology, Tennessee Technological
University– NACD Directorship Certified™

− Master of Science in Business andEconomics, Stockholm University

Work experience– Co-CEO and Global COO, PGIM Real
Estate (since 2023)– Global COO and Head of U.S. Equity,
PGIM Real Estate– MBL Life Assurance Corporation– CEO and President, Environment &Infrastructure Solutions, Wood Group– President, Environment & InfrastructureInc., AMEC Foster Wheeler– CEO and President, MACTEC
Environmental Services, Inc.

− CEO, Sweco Theorells AB− CEO, Ballast Väst AB– Marketing Manager, NCC Industry– Communications Manager, NCC Bygg AB– Independent in relation to the Company
and its executive management–Independent in relation to major
shareholders– Independent in relation to the Company
and its executive management–Independent in relation to major
shareholders– Independent in relation to the Company
and its executive management– Independent in relation to major
shareholders

Dependency
relationship in
accordance with theSwedish Corporate
Governance CodeOla Fält
Born: Sweden, 1966
Skanska Industrial
Solutions; appointed by
SEKO in 2018
Board member
Shareholding in
Skanska: 1,873 Class B
sharesRichard Hörstedt
Born: Sweden, 1963
Region Hus Syd;
appointed by Byggnads
in 2007
Board member
Shareholding in
Skanska: 0 shares

Yvonne Stenman
Born: Sweden, 1959
Region Hus Stockholm
Nord; appointed by
Ledarna in 2018
Board member
Shareholding in
Skanska: 0 shares

Fredrik Norrman
Born: Sweden, 1967
Skanska Sweden AB;
appointed by SACO/
Sveriges Ingenjörers
Akademikerförening in
20232
Deputy board member
Shareholding in
Skanska: 1,113 Class B
sharesHans Reinholdsson
Born: Sweden, 1972
Region Hus Göteborg;
appointed by Byggnads
in 2020
Deputy board member
Shareholding in
Skanska: 1,257 Class B
sharesAnders Rättgård
Born: Sweden, 1961
Region Hus Göteborg;
appointed by Unionen
in 2017
Deputy Board member
Shareholding in
Skanska: 4,954 Class B
sharesAuditors
Ernst & Young AB
Auditor in charge since 2023:
Rickard Andersson, Stockholm,born 1973, Authorized public accountant.
1 Shareholding in Skanska as of December 31, 2023.
2 Effective from February 1, 2024.

Contents

Group overview
Operations

Annual and Sustainability Report 2023

Part of the Board of Directors' Report92Group Leadership Team

Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

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Anders Danielsson

Caroline Fellenius-Omnell

Lena Hök

Richard Kennedy

Claes Larsson

President and Chief Executive Officer(since 2018)

Executive Vice President, General Counsel(since 2017)

Executive Vice President(since 2021)

Executive Vice President(since 2018)

Executive Vice President(since 2006)

Responsible for business units/core
corporate function– Skanska Finland– Skanska Sweden– BoKlok Housing– Communications

Responsible for core corporate function/group function– Legal– Assurance and Control

Responsible for core corporate function– Sustainability and Innovation

Responsible for business units– Skanska USA Building– Skanska USA Civil

Responsible for business units–S kanska Commercial Development
Nordic–S
 kanska Commercial Development
Europe–S
 kanska Commercial Development USA

Born

1966

1968

1972

1966

1965

Joined Skanska in

1991

2017

2017

2004

1990

Shareholding in Skanska,
December 31, 2023

246,166 Class B shares1

45,692 Class B shares

16,953 Class B shares

113,003 Class B shares

262,541 Class B sharesAwarded but unvested shareawards under Skanska’s long-term
share saving program (Seop),
December 31, 20232

87,339 Class B shares

28,926 Class B shares

17,705 Class B shares

69,907 Class B shares

43,926 Class B shares

Board assignments–– Board member, The Swedish
Association of Listed Companies– Chair of the Swedish Sustainability
Committee, International Chamber ofCommerce (ICC)– Member of the Build Environment
Board at World Business Council for
Sustainable Development––

Education–M .Sc. Engineering, KTH Royal Institute ofTechnology, Stockholm– Advanced Management Program,
Harvard, Boston MA, USA– Master of Laws, Stockholm University– Master of Laws, College of Europe,
Bruges– Master of Social Science, Uppsala
University– GEM Management Program, Stockholm
School of Economics Executive
Education– Bachelor of Arts, Rutgers College,
Rutgers University– Juris Doctor, Seton Hall University
School of Law– Master of Laws, London School of
Economics and Political Science–M .Sc. Engineering, Chalmers Universityof Technology, Gothenburg– MBA, Chalmers University ofTechnology and University ofGothenburg

Work experience– Executive Vice President, Skanska AB– President, Skanska Sweden– President, Skanska Norway– Group General Counsel, Tele2 AB– Group General Counsel, Sidel– General Counsel Europe, Tetra Pak AB– Corporate Counsel, AB Electrolux– Senior Vice President, Sustainability,
Skanska AB– Head of Sustainability, Skandia Group– Head of Skandia foundation Ideas forlife, Skandia Group– Head of Communication,
Skandiabanken and Skandia– President, Skanska USA Building– Chief Operating Officer, Skanska USA
Building– General Counsel, Skanska USA Building– President, Skanska Commercial
Development Nordic– President, Skanska Fastigheter
Göteborg

Position

1 The number of shares includes holdings by related persons.
2 Share awards awarded during 2021–2023. In order for the shares to vest, an additional three years of service from each award date are required. Share awards for 2023 are preliminary.
The Board will determine the outcome for 2023 after reviewing the operational performance in the first quarter of 2024.

Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

93Group overview
Operations
Sustainability report
Corporate governanceCorporate governance report
Board of Directors
Group Leadership Team

Remuneration report
Risk and opportunity management
Financial information

Position

Magnus PerssonStåle Rød

Therese Tegner

Executive Vice President, Chief Financial
Officer (since 2018)

Executive Vice President(since 2023)

Executive Vice President(since 2022)

Responsible for core corporate function/group functions/operating unit
– Finance– Reporting and Accounting– Financial Support and Analysis– Skanska Financial Services– Investor Relations– Information Technology– Asset Management

Responsible for business units–S kanska Norway– Skanska Central Europe– Skanska UK– Skanska Residential Development Europe

Responsible for core corporate function– Human Resources

Murphy McCullough, Skanska Commercial Development USA
Senior Vice Presidents, Group Functions
Katarina Bylund , Reporting and Accounting
Karolina Cederhage, Communications
Anders Göransson, Internal Audit and ComplianceMark Lemon, Assurance and Control
Antonia Junelind, Investor Relations
Louise Hallqvist, Skanska Financial Services
Anders Candell, Information Technology (IT)– Internal Audit and Compliance (reports
directly to the Board through the Audit
Committee)

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Business Unit Presidents
Magnus Persson, Skanska Sweden
Stein Ivar Hellestad1, Skanska Norway
Tuomas Särkilahti, Skanska Finland
Michal Jurka , Skanska Central Europe
Gregor Craig2, Skanska UK
Katy Dowding3, Skanska UK
Paul Hewins, Skanska USA Building
Don Fusco, Skanska USA Civil
Lars Jonson, BoKlok Housing
Björn Mattsson, Skanska Residential Development Europe
Jan Odelstam, Skanska Commercial Development Nordic
Katarzyna Zawodna-Bijoch, Skanska Commercial Development
EuropeSanna-Mari Pöyhtäri, Financial Support and Analysis

Born

1976

1972

1968

Joined Skanska in

2006

1997

2005

Shareholding in Skanska,
December 31, 2023

62,736 Class B shares

33,207 Class B shares

35,926 Class B sharesAwarded but unvested shareawards under Skanska’s long-term
share saving program (Seop),
December 31, 20231

35,319 Class B shares

19,169 Class B shares

18,478 Class B shares

Board assignments– Board member, Solar Power Accelerator– Board member, Confederation of
Norwegian Enterprise (NHO)– Board member, Agne Sandberg
Foundation

Education– Ph.D. in Business Economics, Uppsala
University– Master of Science in Business Economics,
Uppsala University–B .Sc. Civil Engineering, Western Norway
University of Applied Sciences– Officers School, Norwegian Army
– Advanced Management Program,
Harvard Business School– Master of Laws, Lund University

Work experience– Chief Financial Officer, Skanska Sweden– Senior Vice President, Investor Relations,
Skanska AB– Group Manager, Corporate Finance,
Skanska AB– Head of Research and Analysis, Skanska
Financial Services– Business Unit President, Skanska Norway– Executive Vice President, Skanska
Norway– Regional Director, Skanska Norway– Project Director, Skanska Norway– Senior Vice President, Skanska Financial
Services– Head of Project Advisory, Skanska
Financial Services– Head of Guarantees and Insurances,
Skanska Financial Services– Senior Associate, Archibald Lawfirm

1 Share awards awarded during 2021–2023. In order for the shares to vest, an additional three years of service from each award date are required.
Share awards for 2023 are preliminary. The Board will determine the outcome for 2023 after reviewing the operational performance in the first quarter of 2024.

1 F rom April 11, 2023. Served as Acting Business Unit President
during the period from January 1, 2023 until April 10, 2023.
2 Until May 1, 2023.
3 From May 2, 2023.

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Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

94

Remuneration report

Corporate governance
Remuneration report
Remuneration report

Risk and opportunity management
Financial information

Introduction
This remuneration report for 2023 describes
how Skanska AB’s (the Company) guidelines
for salary and other remuneration to senior
executives (the Remuneration Guidelines),
adopted by the Annual General Meeting(AGM) 2020 and revised by the AGM 2023,
have been applied in 2023. The report also
provides information on remuneration to
the President and CEO and a summary of
the Company’s outstanding share-related
incentive programs. The report has been
­prepared in accordance with Chapter 8,
Sections 53 a and 53 b of the Swedish
Companies Act and the Rules on
Remuneration of the Board and Executive
Management and on Incentive P­ rogrammes
issued by the Swedish Corporate Governance
Board and now administered by the Stock
Market Self-Regulation Committee (ASK).
Further information on remuneration tosenior executives and board members as
required by Chapter 5, Sections 40–44 of theAnnual Accounts Act is available in Note 37,­Remuneration to senior executives and board
members, on pages 181–186 in the Annual andSustainability Report 2023. Senior executives
include the President and CEO and the othermembers of the Group Leadership Team.
The Board of Directors (the Board) has
established a Compensation Committee.
Information on the work of the Compensation
Committee in 2023 is set out in the corporate

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governance report available on pages 79–89
in the Annual and Sustainability Report 2023.
Remuneration of the Board is not covered bythis remuneration report. Such remunerationis resolved annually by the AGM and isdisclosed in Note 37 on page 183 in the
Annual and Sustainability Report 2023.
The AGM 2023 resolved to approve theBoard’s remuneration report for 2022. No
opinions were expressed by shareholders on
the report.
Key developments 2023
The President and CEO, Anders Danielsson,summarizes Skanska’s overall performancein 2023 in his statement on pages 8–9 in the
Annual and Sustainability Report 2023.
Remuneration Guidelines: scope, purposeand deviations
A prerequisite for the successful­implemen­tation of the Company’s businessstrategy and safeguarding of its long-term
interests, including its sustainability agenda,
is that the Company is able to recruit andretain qualified personnel. To this end,
it is necessary that the Company offers
competitive remuneration. The Remuneration
Guidelines enable the Company to offer themembers of the Group Leadership Team
competitive total ­remuneration. Under theRemuneration Guidelines, the combined total
remuneration for each member of the Group

Leadership Team shall be market-related andcompetitive in the labor market in which thesenior ­executive is placed, and distinguished­performance should be reflected in the
total remuneration. The remuneration may
consist of the following components: fixedcash salary, variable cash remuneration,pension and other benefits. The variable cash
remuneration shall aim at ­promoting theCompany’s business strategy and long-term
interests, including its sustainability agenda.
This is accomplished through the financial
and non-financial targets that determine theoutcome of the variable cash remuneration
and are clearly linked to the Company’sbusiness strategy and ­sustainability agenda.
The applicable Remuneration Guidelines­adopted by the AGM 2023 are found in Note
37 on pages 181–182 in the Annual and­Sustainability Report 2023. The Remuneration
Guidelines adopted by the AGM 2020, whichapplied during the period January 1, 2023
until the close of the AGM 2023, are available
on the Group’s website: group.skanska.com/
corporate-governance/shareholders-meeting/archive-shareholders-meetings. During
the period January 1, 2023 until the close of
the AGM 2023, the Company has compliedwith the Remuneration Guidelines as adopted
by the AGM 2020. During the period from theclose of the AGM 2023 until December 31,
2023, the Company has complied with theRemuneration Guidelines as adopted by theAGM 2023. In 2023, there were no deviations

from the respective applicable Remuneration
Guidelines and no derogations from thedecision-making process that according to
the respective guidelines is to be applied
to determine, review and implement the­respective guidelines. The auditor’s report
regarding the Company’s compliance with
the Remuneration Guidelines adopted by theAGM 2020 and by the AGM 2023 is available
on the Group’s website: group.skanska.com/
corporate-governance/remuneration. No
remuneration has been reclaimed in 2023.
In addition to remuneration covered by the
Remuneration Guidelines, the AGMs of theCompany have resolved to implement longterm share-related incentive programs.
The Compensation Committee’s evaluationof remuneration
As informed in the remuneration report for
2022, the Board proposed to the AGM 2023,
upon recommendation from the ­Compensation
Committee, changes to the Remuneration
Guidelines adopted by the AGM 2020,
primarily in relation to pension benefits aiming
to align the cap for pension benefits for senior
executives with prevailing Swedish market
practice. The AGM 2023 adopted the revised
Remuneration Guidelines in accordance with
the Board’s proposal.

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95

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Remuneration report

Risk and opportunity management
Financial information

The Compensation Committee considers
that the Remuneration Guidelines adopted by
the AGM 2023 have worked well in 2023, that
remuneration to the Group Leadership Teamhas been paid in accordance with the guidelines adopted by the AGM 2020 and revisedby the AGM 2023 and that the purpose of therespective guidelines has been achieved. The
Compensation Committee has concluded
that the Remuneration Guidelines adopted
by the AGM 2023 should not be revised. The
Remuneration Guidelines adopted by theAGM 2023 are intended to remain valid until
the AGM 2027. No changes are proposed to
the Remuneration Guidelines, and therefore
no shareholder approval of remuneration
guidelines will be required at the AGM 2024.
The Compensation Committee has further
concluded that the ongoing programs andthose that ended during the year, for variable
remuneration to the Group Leadership Team,as well as the current remuneration structuresand levels in the Company, are appropriate,on market terms and well balanced. Upon
­evaluation of the ongoing programs for­variable remuneration to the Group Leadership
Team, the Compensation Committee
concluded that these programs efficiently
served their purpose to support achieving theCompany’s strategic business objectives andsustainable long-term ­interests, as well as toincrease the long-term focus of the membersof the Group Leadership Team and align theirinterests with the long-term expectations andthe interests of the shareholders.

Table 1 – Total remuneration of the President and CEO in 2022 and 20231
Fixed remuneration

SEK thousands

Variable remuneration

Name and position

Financial year

Base salary

Extraordinary items

Pension expense

Total remuneration

Proportion of
fixed and variable
remuneration7

Anders Danielsson,
President and CEO

2023

14,250

133

0

1,087

–

4,988

20,45895/5

2022

13,750126

10,313

7,756

–

4,812

36,757

51/49

2

Other remuneration
and benefits3

One-year variable
remuneration4

Multi-year variable
remuneration5

6

1 Except for multi-year variable remuneration, the table reports remuneration earned in 2022 and 2023. Disbursement may or may not have been made the same year.
2 Vacation allowance is included in the base salary.
3 Other remuneration and benefits for 2023 include company car, fuel, medical insurance, meals and tax return assistance.
4 One-year variable cash remuneration relating to the 2023 financial year will be finally determined after reviewing the operational performance in the first quarter of 2024. The one-year variable cash remuneration for the President and CEO may amount to not more than 75 percentof the fixed annual cash salary. The amount included for 2022 in the table refers to actual disbursements for the 2022 financial year.
5 The value stated for 2023 refers to a preliminary award of performance shares for 2023’s invested saving shares, calculated based on the share price on December 29, 2023 (SEK 182.35). The President and CEO is preliminarily estimated to receive 5,963 performance shares.
The estimated number of performance shares for 2023, calculated based on the outcome of the performance conditions, has been reduced as a consequence of the cost limits of the share saving program. The value stated refers to the preliminary number of performance shares
after this reduction. The Board will determine the final outcome for 2023 after reviewing the operational performance in the first quarter of 2024. In order to receive performance shares, an additional three years of service are required. For 2023, the President and CEO invested in
8,560 saving shares, equivalent to SEK 1,561 thousand, calculated based on the share price on December 29, 2023 (SEK 182.35).
The President and CEO has received remuneration related to the 2020 financial year. After a three-year lock-up period, as part of the previous share saving program Seop 5, the President and CEO received 38,277 shares, equivalent to SEK 6,980 thousand, for performance sharesawarded for the 2020 financial year. The value has been calculated based on the share price on December 29, 2023 (SEK 182.35).
6 The President and CEO is covered by an individual occupational pension insurance plan, including health insurance (Sw: sjukförsäkring). The occupational pension insurance plan is a defined-contribution plan and the total premiums for the occupational pension insurance plan,
including health insurance, shall amount to 35 percent of the fixed annual cash salary.
7 Pension expense, which in its entirety relates to base salary and is contribution defined, has been counted entirely as fixed remuneration.

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Annual and Sustainability Report 2023

96Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Remuneration report

Risk and opportunity management
Financial information

matching and/or performance shares.
­Matching and performance shares areawarded free of charge and are subject tothree-year lock-up periods, during which thesaving shares must be held, and employment
must continue. Vesting of performance sharesis also subject to the satisfaction of a numberof performance conditions. The performance
conditions used to assess the outcome ofSeop 5 and Seop 6 consist of f­ inancial targets
at Group, business unit and/or business unit
cluster level. The financial target applicable atGroup level, which applies for the President
and CEO and the other members of the Group
Leadership Team, is growth in earnings per
share (EPS target). In Seop 6, the performance

Share based remuneration
Outstanding share-related incentive
programs
Long-term share saving programs, Skanska
employee ownership programs (Seop 5
and Seop 6) have been implemented in the
Company. Seop 5 and Seop 6 give present
and future employees the opportunity of
becoming shareholders of the Company
and are offered to permanent employees in
the Skanska Group. The President and CEO
participates in Seop 5 and Seop 6.
Subject to the participant having made an own
investment in shares in the Company (saving
shares), the participant may be awarded

conditions applicable at Group level also contain a climate target linked to the Group’s
reduction of carbon emissions within scope 1
and scope 2 (Climate target), which applies
for the President and CEO and the othermembers of the Group Leadership Team in
addition to the EPS target. The weighting ofthe ­performance conditions and the 2023
­preliminary outcome of the EPS target andClimate target can be found in Table 3 (b).
Information on the starting point and­outperform target for the EPS target 2023, thethreshold level for the Climate target 2023
and on the financial targets applicable forparticipants in Seop 6 in the different
business streams can be found in Note 37

on page 186 in the Annual and Sustainability
Report 2023. No matching shares areawarded to the President and CEO under
Seop 5 or Seop 6.
Further information on Seop 5 and Seop 6,
including the conditions on which the outcome depends, is available on the Group’s
website: group.skanska.com/corporategovernance/­remuneration/incentiveprograms. Information on costs of the
programs, dilution effects, etc. is available
in Note 37 on page 185 in the Annual andSustainability Report 2023.

Table 2 – Remuneration of the President and CEO in shares
The main conditions of the share programs

Information regarding the reported financial year4
OpeningbalanceDuring the year

Closing balance

End ofretention period

Share awards heldat the beginningof the year

Awarded

VestedSubject toperformance
conditionAwarded andunvested at year
end

Shares subject toretention period5

Name and position

Name of program

Performance
period1

Anders Danielsson,
President and CEO

Seop 52020–2022

2020–2022

2023–2025

2023–2025

119,653

038,2777–

81,376–

Seop 62023–2025

2023–2025

2026–2028

2026–2028

05,9636

0

–

5,963

–

119,653

5,963

38,277–87,339–Total

Award period

2

Vesting period

3

1 Each Seop program is divided into three annual programs, with an annual performance period. Seop 5 is divided into annual program 2020 with performance period 2020, annual program 2021 with performance period 2021 and annual program 2022 with performance period 2022.
Seop 6 is divided into annual program 2023 with performance period 2023, annual program 2024 with performance period 2024 and annual program 2025 with performance period 2025. Vesting of performance shares is conditional upon satisfaction of a number of performance
conditions during the performance period for each annual program.
2 The investments in saving shares through the Seop programs are normally made by way of monthly salary deductions followed by monthly investments in saving shares, normally the month after the month the salary deduction was made. The acquisition period for Seop 5 comprises
the financial year 2020 in respect of the annual program 2020, the financial year 2021 in respect of the annual program 2021, and the financial year 2022 in respect of the annual program 2022. The acquisition period for Seop 6 comprises the financial year 2023 in respect of theannual program 2023, the financial year 2024 in respect of the annual program 2024, and the financial year 2025 in respect of the annual program 2025. In connection with each monthly acquisition of saving shares, future matching and/or performance shares are awarded.
3 Matching and/or performance shares may normally be vested only after the lock-up period for each annual program, which comprises three years. Vesting of matching and/or performance shares to participants within each annual program is estimated to occur monthly three years
after the investment in each saving share, meaning that vesting of matching and performance shares under Seop 5 is estimated to occur monthly during the financial year 2023 in respect of the annual program 2020, during the financial year 2024 in respect of the annual program
2021 and during the financial year 2025 in respect of the annual program 2022. Vesting of performance shares under Seop 6 is estimated to occur monthly during the financial year 2026 in respect of the annual program 2023, during the financial year 2027 in respect of the annual
program 2024, and during the financial year 2028 in respect of the annual program 2025.
4 Performance shares related to saving shares invested under Seop 5 for 2020 have vested, whereupon 38,277 performance shares were transferred to the President and CEO. Under Seop 6, the President and CEO is preliminarily awarded 5,963 future performance shares.
Saving shares, in which the President and CEO has invested to become eligible to participate in the programs, are not included in the table.
5 There is no requirement to hold the saving, matching or performance shares after acquisition/vesting.
6 Value: SEK 1,087 thousand, calculated based on the share price on December 29, 2023 (SEK 182.35) multiplied by the number of preliminary awards (5,963).
7 Value: SEK 6,980 thousand, calculated based on the share price on December 29, 2023 (SEK 182.35) multiplied by the number of performance shares vested (38,277).

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97

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Remuneration report

Risk and opportunity management
Financial information

Application of performance criteria
The performance criteria for the President
and CEO’s variable remuneration have been
selected to deliver Skanska’s strategy and toencourage behavior which is in the long-term
interest of the Company and the Group. In
the selection of performance criteria, thestrategic objectives and short- and long-termbusiness priorities for 2023 have been taken
into account. The non-financial performance

criteria further contribute to alignment withthe sustainability agenda as well as Skanska’s
purpose and values.
In addition to the financial targets outlined inTable 3 (a), the President and CEO has nonfinancial targets that may reduce the outcome of the variable cash remuneration. The
outcome in relation to the financial targets­determines the total (financial) bonus ­potential,

i.e. the financial targets are the basis of thetotal bonus potential. This outcome may
be reduced depending on the outcomes of
the non-financial targets. The non-financial
targets are set to support the Company’s­business strategy and long-term value­creation, including its sustainability agenda,
and are for 2023 activity-based targets­related to, among other things, Skanska’s­climate target. The outcome is reduced incases where the ­non-financial targets are
not fully reached. The non-financial targets
together represent 50 percent of the total
bonus which means that the total bonus
outcome may be reduced by up to 50 percent
if the non-­financial targets are not met.
Information on Skanska’s climate target
is available on pages 46–53 and 68 in the
Annual and Sustainability R­ eport 2023.

Table 3 (a) – Performance of the President and CEO in 2023: variable cash remuneration
Name and position

Description of the criteria related
to the remuneration component

Relative weighting of the performance criteria

Anders Danielsson, President and CEO

Income after financial items 20232

100%a) Measured performance1 andb) actual award/remuneration outcomea) SEK 2.6 billionb) SEK 0 thousand3

1 Starting point and outperform target can be found in Note 37 on page 183 in the Annual and Sustainability Report 2023.
2 The income excludes the operating unit Asset Management (portfolio of PPP assets).
3 Outcome relating to the 2023 financial year will be finally determined after reviewing the operational performance in the first quarter of 2024. The one-year variable cash remuneration for the President and CEO may amount to not more than 75 percent of the fixed annual cash
salary.

Table 3 (b) – Performance of the President and CEO in 2023: share-based incentives
Name and position

Description of the criteria related
to the remuneration component

Relative weighting of the performance criteriaa) Measured performance1 andb) actual award/remuneration outcome

Anders Danielsson, President and CEO

Earnings per share 20232

85%a) SEK 7.8b) SEK 0 thousand4

Carbon emissions (CO₂e) 20233

15%a) 161,000 tonnesb) SEK 1,087 thousand4

1 Starting point and outperform target for the EPS target and threshold level for the Climate target can be found in Note 37 on page 186 in the Annual and Sustainability Report 2023.
2 Profit for the period attributable to equity holders, divided by the average number of outstanding shares after dilution during the year.
3 Emissions within scope 1 and scope 2 (market based). More information can be found on page 68 in the Annual and Sustainability Report 2023.
4 The value stated refers to a preliminary award of performance shares for 2023’s invested saving shares, calculated based on the share price on December 29, 2023 (SEK 182.35). The President and CEO is preliminarily estimated to receive 5,963 performance shares in total for both
performance criteria. The estimated number of performance shares for 2023, calculated based on the outcome of the performance conditions, has been reduced as a consequence of the cost limits of the share saving program. The value stated refers to the preliminary number of
performance shares after this reduction. The Board will determine the final outcome after reviewing the operational performance in the first quarter of 2024. In order to receive performance shares, an additional three years of service are required.

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98

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Remuneration report

Risk and opportunity management
Financial information

Comparative information on the change of remuneration and company performance
Table 4 – Remuneration and company performance over the last reported financial years
Annual change1

2018

2019

2020

2021

2022

2023

16,86832,347 (+91.8%)

34,399 (+6.3%)

35,772 (+4.0%)

36,757 (+2.8%)

20,458 (-44.3%)2

Income after financial items (SEK bn)3

4.9

7.7 (+58.9%)

11.6 (+50.5%)

9.7 (-16.9%)9.6 (-0.8%)

3.8 (-60.0%)4

Earnings per share (SEK)5

9.5

15.5 (+63.2%)

22.5 (+45.2%)

19.8 (-12.0%)

18.6 (-6.1%)

7.9 (-57.5%)6

Carbon emissions (tonnes)7,8

332,000

291,000

265,000

216,000

182,000

161,000

–

–

1,455

1,603 (+10.2%)

1,589 (-0.9%)

1,231 (-22.5%)11

Executive remuneration (SEK thousands)
President and CEO remuneration (Anders Danielsson)
Skanska Group’s performance

Average remuneration on a full-time equivalentbasis of employees9 of the Company (SEK thousands)10
Employees9 of the Company

1T he table reports actual outcome and annual change in percentage.
2 Total remuneration in 2023 as set out in Table 1.
3 The income includes eliminations at the Group level. In the remuneration reports for 2020-2022, the income has been reported excluding eliminations at the Group level since the financial targets for the variable cash remuneration has been set based on income after financial items
excluding eliminations at the Group level. As of 2023, eliminations at the Group level are no longer excluded from the income for target setting purposes, why the reporting in this table has been changed accordingly.
4 The table reports the income including the operating unit Asset Management (portfolio of PPP assets). In Table 3 (a), the income after financial items is reported excluding the operating unit Asset Management. Variable cash remuneration to the President and CEO for 2023 has been
related to income after financial items excluding the operating unit Asset Management, as set forth in Table 3 (a).
5 Profit for the period attributable to equity holders, divided by the average number of outstanding shares during the year.
6 The table reports earnings per share before dilution. In Table 3 (b), earnings per share is reported after dilution. Share-based incentives to the President and CEO for 2023 has been related to earnings per share after dilution, as set forth in Table 3 (b).
7 Scope 1 (direct) and scope 2 (indirect - market based). More information can be found on page 68 in the Annual and Sustainability Report 2023.
8 C arbon emissions are reported in the table without annual change in percentage in accordance with the method used for reporting of sustainability information in the annual and sustainability report available under the heading Sustainability information on pages 66–78 in the
Annual and Sustainability Report 2023.
9 E xcluding members of the Group Leadership Team.
10 C
 omparative information on the change of remuneration is not included in the table for 2018–2019. As 2020 is the first financial year for which the reporting obligation exists, the Company does not have readily available the required information for the previous financial years
2018–2019.
11 Average remuneration for the Company’s other employees includes payments of remuneration and benefits made in 2023. For one-year variable cash remuneration, the amount included in the table is however preliminary variable cash remuneration related to the 2023 financial
year which will be finally determined and disbursed after reviewing the operational performance in the first quarter of 2024. The calculation of the one-year variable cash remuneration is further preliminary insofar as the outcome of the non-financial targets have yet not been taken
into account. When calculating the preliminary one-year variable cash remuneration, full outcome of the non-financial targets has consequently been considered. The value included for multi-year variable remuneration (the share saving program Seop 6) refers to preliminary
awards of matching and performance shares for 2023’s invested saving shares, calculated based on the share price on December 29, 2023 (SEK 182.35). The estimated number of performance shares for 2023, calculated based on the outcome of the performance conditions, hasbeen reduced as a consequence of the cost limits of the share saving program. The value included in the average remuneration refers to the preliminary number of performance shares after this reduction. The Board will determine the final outcome of the share saving program
after reviewing the operational performance in the first quarter of 2024. In order to receive matching and performance shares, an additional three years of service are required. The average remuneration further includes pensions vested during the year in defined-benefit plans andpension expenses for defined-contribution plans. The average number of full-time equivalent employees in 2023 was 105 (2022: 74). The higher number of average full-time equivalent employees during 2023 has affected the average remuneration. The average remuneration for2023 is further affected by a lower outcome for the one-year variable cash remuneration and the share saving program for 2023 compared to 2022.

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Group overview
Operations
Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

99

Risk and opportunity management
Proactive and structured risk management at all levels provides increased
resilience to risks and a greater ability to capture opportunities.

Risk and opportunity management
Risk and opportunity management

Financial information

Established by the Board of Directors (theBoard), our Group Enterprise Risk Management Policy (ERMP) sets out the framework
and responsibilities for risk management
across the organization. The overall purpose isto ensure that risk is managed systematicallyand as efficiently as possible and is assigned
the correct priorities to help us achieve ourbusiness objectives and goals.
Enterprise risk management
We apply a top-down and bottom-up
approach, using established risk identification
and analysis techniques and the COSO
(Committee of Sponsoring Organizations of
the Treadway Commission) framework for
guidance. This approach reflects an integrated
and robust approach to enterprise risk
management (ERM).
The Group Leadership Team is ultimately
responsible for risk management and for the
implementation of the ERMP. Business units
are responsible for managing risk in theirrespective business operations within the

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framework set by the ERMP. They also reportto the Group Leadership Team on relevant risk
management matters.
From business unit to Group level
The ERMP requires each business unit tocreate an Enterprise Risk Register (ERR).
Business units identify, classify and assess
their risks and then develop risk management
plans. The units retain ownership of their risks.
Their ERRs are then collated, sorted, reviewed,
and consolidated at Group level to create theGroup ERR from which top risks are identified;Group-level risk controls are reviewed andmodified as necessary. Enterprise risks areclassified as strategic, operational, financial
and regulatory. Most Group-level risk controls
are set out in the Group policies, procedures
and standards, which in turn are part of theGroup Governance Framework. A particularrisk may be addressed by more than one
policy, procedure or standard. For a list of theGroup policies read more in our corporate
governance report on page 88.

All risks in the business units’ ERRs are­categorized using the Skanska Risk Universe,
which allows us to work more consistently on
enterprise risk. We can quickly and easilycollate, analyze and respond to the current
main risks in a more dynamic and proactive
way. We can also consider whether it isappropriate to develop a risk appetite and risk
tolerance for certain key risks. Other benefits
include support for our compliance programs
and more efficient design, implementation andassurance of internal controls. This clearly links
to our governance processes and ultimately
enables a more integrated system ofgovernance, risk and control.
ERM process 2023
Cybersecurity continues to be a critical risk. In
response to the increasing frequency of cyberthreats and aligned with a more centralized
approach to IT, several significant adjustments
to the Group steering documents were madein 2023. These changes include an update to
the Group IT Policy, requiring all business units
to implement an “Acceptable Use Standard”,

which establishes rules for the proper use of
IT equipment and services, and the handlingof information in a secure way. The Group
Information Security Standard was overhauled
to provide a clearer and more definitive
Information Security Management System.
Geopolitical risks were also in focus during theyear with the ongoing war in Ukraine and its
impacts on the global economy, shifts in thepolitical landscape in Europe and elsewhere,
increased tensions in Asia, and the renewed
conflict between Israel and Palestine.
Additional changes to the Group governanceframework include the introduction of theGroup Innovation Policy, which requires
business units to align their innovation
portfolios with that of the Group.

Strategic risks

Operational risks

Financial risks

Regulatory risks

Relate to our purpose, long-term
objectives and strategy.

Threaten the achievement of our businessplan and other short-term objectives andgoals, or the efficient use of resources.

Threaten our financial strength andfinancial assets.

Relate to compliance with applicable laws,
external regulations, and internal rules.

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Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Risk universe and top risks
An annual review of Skanska’s enterpriserisk environment is conducted based on all
business units’ ERRs. This process includes
reviewing existing risks, identifying andresponding to potential new risks, andupdating the status of risk management
activities. The review, which is presented
to the Board, ranks various types ofenterprise risks. For each of the main risks,

100

the appropriateness and effectiveness ofmanagement and mitigation measures
are assessed and corrected as required.
The table that follows, presents enterpriserisks weighed together with risks identifiedin stakeholder dialogues and materiality
analyses. The risks are examples ofsignificant risks to Skanska divided in
distinct but overlapping risk categories – arisk may fit into more than one category.

Remuneration report
Risk and opportunity management
Risk and opportunity management

Financial information

Risk area and description

Potential impact

Mitigation measures/activities• Financial and non-financial consequences for projects• Fewer number and/or postponement of new projects, among bothpublic and private customers• Reduced demand from key customer base or several customer
categories• Shift in preference to companies with a strong financial position
and/or long-term relationships• Increase in land-banking opportunities due to less competition and/or financially stressed sellers

Our diversified and multinational business portfolio – in terms of clients, market sectors, project size, contract types,
business models and strategic partnerships – gives us stability in times with macroeconomic instability. Additionally,
we carefully manage our balance sheet and overall exposure to risk, including capital at risk in the development
streams. We are constantly monitoring and evaluating market trends to anticipate changes in the business environment in the form of political decisions and amended regulations in areas that are important to our operations. In all ourhome markets we play an active role in the public debate and engage with governments at the local and national levels,
as well as with customers, partners and other stakeholders, to advance solutions that benefit society in multiple ways
and to drive a more ambitious stance on issues including climate.

• Cost increases or project delays due to extreme weather conditions• Project losses and investment write-downs• Increased cost of carbon (such as carbon taxes)• Damaged reputation and inability to meet project commitments• Fines, penalties, lawsuits

Our Climate Transition Plan and climate target of achieving net-zero carbon emissions by 2045 guides our work on
reducing the climate impact of our operations. We create and implement transformative climate solutions. By using
solutions that are low in carbon, circular, smart, and sustainable we drive our business forward and empower ourcustomers to succeed in meeting their sustainability goals. We partner to share knowledge and to develop andinnovate transformative solutions. We assess climate risks as a part of our risk evaluation process for larger projects,
allowing us to mitigate potential risks at an early stage.

Strategic risks
Macroeconomic instability
Economic downturn or macroeconomic
instability including impact from changes in key
economic factors such as inflation and interest
rates or events impacting the macroeconomic
stability such as geopolitical instability andepidemics/pandemics.

> Read more on global trends with significance for Skanska’s operations on page 12.

Climate risks
Physical incidents caused by the adverse
impact of climate change, such as extreme
weather conditions. Failure to adapt to newclimate regulations and demands frominvestors and customers.

> Read more about our climate risk and opportunity management on pages 46–52 and according to TCFD (Task force
on Climate-related Financial Disclosures) recommendations on pages 76–77.
Diversity and inclusion risks
Employment discrimination based on social
background, ethnicity, disability, gender,
age, religion, sexual orientation, or any otherprotected characteristic. Non-inclusive
workplace culture resulting in exclusionary
experiences and cases of discrimination andharassment.

• Difficulties attracting, recruiting and/or retaining employees with
the necessary skills and experience• Lower employee engagement and productivity due to non-inclusive
behaviors and experiences• Damaged reputation and inability to meet project commitments• Fines, penalties, lawsuits

Fostering a diverse and inclusive culture enables us to recruit and retain a diverse talent pool that is essential forbuilding exceptional teams that can better understand our increasingly diverse customer base and deliver outstanding
performance. In addition, a diverse workforce and an inclusive workplace is a necessity to find innovative solutions,drive continuous improvements and ensure better decision making to achieve our Group targets including our Groupclimate targets. Our Group Diversity and Inclusion Procedure specifies that all business units are to work systematicallywith diversity and inclusion. All business units are required to set up their own diversity and inclusion steering groups aswell as action plans and goals, and track metrics to measure their success.
> Read more about our work on embracing diversity and inclusion on page 65.

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Corporate governance
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Risk and opportunity management

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

Risk area and description

Potential impact

Mitigation measures/activities• Difficulties attracting, recruiting and/or retaining employees with thenecessary skills and expertise• Lower employee engagement and productivity• Damaged reputation and inability to meet project commitments• Financial and non-financial consequences for projects

We have an established and solid process for performance and talent management, including robust and fact-based
succession planning, structured resource planning and a transparent performance review process based on diversity
and inclusion. Seop, the Skanska employee ownership program, provides employees with the opportunity to invest
in the company, and creates incentives to contribute to our performance through matching shares and performance
shares based on business unit performance.

Strategic risks
Lack/loss of key employees
Inability to attract, recruit and retain a skilled,
diverse and committed workforce. Loss of,failure to identify need for, or failure to recruit key
individuals or teams with critical knowledge.

Risk and opportunity management

Financial information

101> Read the interview with Therese Tegner, Executive Vice President for Human Resources, on how we maintain alearning and development culture to attract talent on page 17.
Leadership or management failure in strategy execution
Lack of control of performance and poor
implementation of corrective actions, or
failure by management to implement or adapt
strategies to changing circumstances.

• Operational inefficiency, increasing costs and decreasing profits• Project losses and investment write-downs• Reduced ability to deliver for customers and inability to meet projectcommitments• Pursuing and winning the wrong project• Damaged reputation

The Group governance framework provides clarity on business unit decision making and accountability. Greaterattention is being paid to management of the design process, commercial terms and changes in project scope, while
increased employee training creates teams with the expertise needed to make the right decisions in project planning,procurement, design and execution.

• Cyberfraud• Loss of IT (or project-critical) system availability• Data confidentiality breach• Loss of data availability and integrity• Financial loss
• Damaged reputation• Fines, penalties, lawsuits

Our Information Classification Standard and Security Standard both aim to protect us from cyber risks and provide
a common baseline for security in business-critical processes and/or business-critical information supported by
an IT system. In addition to the frequent penetration testing, e-mail filtering and security functions provided by theMicrosoft Office 365 platform, we monitor, follow up and investigate all incidents on a regular basis. We also provide
relevant training and updates on security awareness to all users. Our Security Operations Center monitors 24/7/365
for cyber threats and can take action to mitigate, remediate and isolate if needed. We also ensure and verify that
suppliers handling Skanska information mitigate cyber risks in line with our minimum requirements. A new common IT
infrastructure and Information Security organization was launched on January 1, 2023, to strengthen our information
security and ability to deliver IT services efficiently across the Group.

IT systems and information
Cybersecurity breach, or major IT system failure
or loss of critical IT infrastructure.

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Contents

Annual and Sustainability Report 2023

Group overview

Risk area and description

Operations

Operational risks

Sustainability reportLoss-making projects/investment

Corporate governance

Systematic underestimating of cost, schedule,
scope, quantities and/or selecting the wrong
projects or customers including choosing volume
over profit or just to find work for a unit.

Remuneration report
Risk and opportunity management
Risk and opportunity management

Part of the Board of Directors' Report

102

Potential impact

Mitigation measures/activities• Margin fade, operational inefficiency, increasing costs anddecreasing profits• Project losses and investment write-downs• Reduced ability to deliver for customers and inability to meet projectcommitments• Damaged reputation• Fines, penalties, lawsuits

We have an established process to ensure that risks are assessed and understood before any projects are approved.
Improved project reporting and review procedures with additional risk management activities include continualrisk monitoring throughout a project so that problems can be solved, improvements made earlier, and project costs
reduced. Increased employee training and an inclusive working environment to create teams with diversified skills
to fully capitalize on expertise, innovation and best practices across the company. Proactive measures relating tocapital at risk, pre-leasing and pre-sales requirements, as well as an increased focus on management of claims andlitigation, all contribute to improved project execution.
> Read more about our operational risk management on page 105.

Financial information
Supply chain risks
Contracting with counterparties who are (orbecome) unable to fulfill financial obligations ormeet contractual commitments. Interruptions to
supply chains and shortages of materials andlabor resulting in financial and non-financial
consequences for projects.

• Margin fade or financial loss due to increased project costs or lower
productivity• Environmental or safety incidents, or breaches of human rights
throughout the supply chain• Decreased ability to deliver for customers and inability to meetproject commitments• Damaged reputation if suppliers and subcontractors act in ways
inconsistent with our values• Fines, penalties, lawsuits

Strategic procurement and early commitment of key subcontractors, as well as prequalification or qualification
prior to award of a contract, reduce performance risk within projects. Our Supplier Code of Conduct is contractually
included in all agreements with suppliers and contractors. We take a risk-based approach to due diligence on third
parties. Mandatory ethical due diligence is carried out for intermediaries, joint venture partners and sellers or buyers.
A global database for sanctions screening is used, which automatically checks all active suppliers every 24 hours.
Product-related sanctions risks are mitigated through additional due diligence, with particular attention given tohigh-risk suppliers. Our procedures have been enhanced as a result of the increasing risks following the war in Ukraine
and other global tensions.

• Fatal accidents, life-changing injuries, and injuries and long-term illhealth that reduce life expectancy or quality of life
• Fines, penalties, lawsuits• Damaged reputation and loss of trust

To work proactively and achieve continuous improvement, safety performance is reviewed regularly by the Group
Leadership Team and the Board. Our Group Sustainability Policy and Group Health and Safety Standard specify
expected behavior for all our workplaces; they cover aspects including training, incident management, risk assessment
and instructions for proper safety management on site. All business units are required to be certified to the ISO
45001 occupational health and safety management system, which improves our capabilities to drive continuous
improvements. We partner to develop and innovate technical solutions, design construction processes and ways
of working to reduce health and safety risks in our operations. All business units establish a mandatory Health and
Safety Road Map which is reviewed and updated annually. The Road Map is built around four focus areas: Safety
culture, Hierarchy of Control, Analysis and Subcontractors. It steers efforts into developing and implementing safety
solutions that have a high impact.

> Read more about our responsible supply chain work on pages 63–64.

Health and safety risks
Injuries, accidents, fatal accidents and ill healthaffecting people at our sites, or people affectedby our operations.

> Read more about our safety work on pages 61–62.
Resource efficiency
Inefficient or wasteful use of energy, materials,
waste and water.

• Negative environmental impacts• Margin fade, operational inefficiency, increasing costs anddecreasing profits• Inability to meet project schedules• Damaged reputation and loss of license to operate• Fines, penalties, lawsuits

Circularity and resource efficiency are linked to operational efficiency and reduced environmental impact. Close
cooperation with suppliers and customers, and enhanced digital capabilities, are increasingly important in encouraging
innovation, increasing productivity, reducing emissions and waste, and creating new business opportunities. Our
Group Sustainability Policy, our climate target and climate transition plan drive development, innovation andimprovements on circularity and resource efficiency. All business units have defined their climate plans with key
actions to reduce emissions, and we have long had a target to limit the share of waste to sent to landfill. Performanceand emissions related to waste, energy, fuels and materials are followed up on a quarterly basis at business unit andGroup level.
> Read more about our circularity and resource efficiency work on pages 48 and 55–57.

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Contents

Annual and Sustainability Report 2023

Group overview

Risk area and description

Operations

Operational risks

Sustainability report

Competitive market situation

Corporate governanceOver-competitive markets (e.g., new competitors
entering market, very aggressive bidding,commercial develoeprs selling at very low prices,or selection critiera not suiting Skanska).

Remuneration report

Part of the Board of Directors' Report

Potential impact

Mitigation measures/activities• Lost business opportunities• Project losses and investment write-downs• Damaged reputation and inability to meet project commitments• Pursuing and winning the wrong projects

Within each business stream, we have a clearly defined commercial direction to maximize value creation. According
to the Group Project Scrutiny and Approval Procedure, the Group Tender Approval Procedure, and the Group Investment Approval Procedure, as well as the Limits of Authorization appended to the Board’s Procedural Rules, proposedconstruction and development projects exceeding heat-map thresholds pass through the Business Unit Project
Board, Skanska Tender Board at Group level and the Board’s Project Review Committee for scrutiny and approval.

Risk and opportunity management> Read more about our strategy and our business streams on pages 15 and 22–38.

Risk and opportunity management

Financial information

103

Environmental risks
Major environmental incidents in operations orin the supply chain, or pollution or other negativeenvironmental impacts.

• Harm to people and ecosystems• Negative environmental impacts• Margin fade, operational inefficiency, increasing costs anddecreasing profits• Inability to meet project schedules• Damaged reputation and loss of license to operate• Fines, penalties, lawsuits

Mandatory ISO 14001 certification ensures systematic management of environmental risks and issues, including
investigation of incidents. Group and business unit specialists ensure compliance with our Group Sustainability Policy
and related standards, which in most markets is more stringent than local regulations and include retaining ISO 14001
certification. We work with suppliers to minimize risks of supply chain environmental breaches and conduct employee
training in environmental practice.

• Loss of access to financial market and financing on favorable terms• Breach of financing agreements• Higher costs of funding• Downgrading or bankruptcy of banks

In our Group Financial Policy, the Board has established guidelines, objectives and limits with respect to financial
management and financial risk management. Our target of an adjusted net debt not exceeding SEK -10 billion, as
well as limits on capital at risk and capital employed in the development streams, help us ensure that our financial
position remains strong. We ensure that the Group is well financed and monitor liquidity, financial assets and financial
liabilities through active management of financing.

Financial risks
Funding and other financial risks
Loss of access to the financial market. In
addition, in our operations we are exposed toother financial risks, such as credit risk, liquidity
risk and market risk.

> Read more about our financial risks in Note 6, on pages 134–142.

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Contents

Annual and Sustainability Report 2023

Group overview

Risk area and description

Operations

Regulatory risks

Sustainability report

Ethical breaches, corruption and bribery

Corporate governance

Breach of bribery and corruption laws (suchas the UK Bribery Act, US Foreign Corrupt
Practices Act, money laundering, proceeds ofcrime), breaches of EU competition law, US
antitrust law or other public procurement law.

Remuneration report
Risk and opportunity management

Part of the Board of Directors' Report

104

Potential impact

Mitigation measures/activities• Damaged reputation and loss of trust as a responsible company• Delisting from public procurement• Fines, penalties, civil lawsuits and criminal charges• Decreased ability to deliver for customers and inability to meetproject commitments

Our Code of Conduct, Group Anti-Corruption Policy, Competition law manuals and values provide clear direction toemployees for appropriate and ethical conduct. The Supplier Code of Conduct requires similar standards from third
parties. All employees are required to undergo Code of Conduct training on a regular basis. Targeted anti-corruption andcompetition law training is also conducted for those in relevant roles. Regular ethics risk assessments identify potential
issues and enable preventive and detective measures to be implemented. Identifying ethical and transactional risk is partof the project approval process, and due diligence is performed for potential key parties. The Code of Conduct Hotline
reporting system, managed by a third party, provides a mechanism to anonymously report breaches or suspected breachesof our Code of Conduct. Credible reports are always investigated, and action taken where appropriate.
> Read more about our focus on ethics, including anti-corruption, bribery and human rights on pages 63–64.

• Harm to people and environment• Damaged reputation and loss of trust as a responsible company• Fines, penalties, civil lawsuits and criminal charges

We support recognized global human rights and fair working conditions for people working on or within the Group’s projects,
workplaces and supply chain. We have zero tolerance for any form of human trafficking, forced or child labor, and we are
vigilant to ensure that no one working on our sites is subjected to any of these. Human rights are integrated into our Code of
Conduct and Supplier Code of Conduct. Reported deviations may have consequences such as termination of agreements.
> Read more about our responsible supply chain work on page 64.

• Negative impact on projects or business units• Damaged reputation and loss of trust as a responsible company• Fines, penalties, civil lawsuits and criminal charge

We are subject to a variety of external laws, rules and regulations that affect our operations at Group level, in each of ourbusiness streams and in each of the jurisdictions in which we operate. We are committed to ensuring high standards ofcorporate governance. Good corporate governance ensures oversight across the organization by the Board of Directors,
the President and CEO and the Group Leadership Team, a sound risk culture, and a robust risk management to effectively
identify and control risks. We work actively to ensure compliance with applicable laws, rules and regulations by all business
units and functions in the Group, and endeavor to collaborate and be transparent with all relevant governing bodies but can
provide no assurance that we will at all times be fully compliant.
> Read more about our governance in the corporate governance report on pages 80–93.

• Negative impact on projects or business units• Contractual implications• Damaged reputation and loss of trust as a responsible company• Fines, penalties, civil lawsuits and criminal charge

Our Code of Conduct, Group Sanction Procedure, Supplier Code of Conduct and values provide clear direction toemployees for appropriate conduct. Identifying ethical and transactional risk is part of the project approval process.
To facilitate compliance with sanctions, we operate a screening process for counterparties via an external database.
Screening is mandatory for certain counterparties while others are screened using a risk-based approach. In addition, we
automatically check all active suppliers every 24 hours. A dedicated team assesses the alerts identified in the screening
process. We perform sanctions training, awareness campaigns and provide guidance for relevant personnel.
> Read more about our focus on ethics, including anti-corruption, bribery and sanctions, on pages 63–64.

Risk and opportunity management

Financial information
Human rights violations
Human rights violations, such as unfair working
conditions, modern slavery and child labor, or
environmental violations at workplaces/sites
and by subcontractors or suppliers in our supply
chain.
Politics (external)
Political event(s) disrupts business (e.g.,material changes in legislation, or budget
allocations).

Violation of sanctions
Breach of applicable export-control regulations
and sanctions in force.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Risk and opportunity management

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Operational risk management
Construction and Project Development operations depend on properly managing risks andopportunities, which are often specific to eachproject. According to the Group Project Scrutiny and Approval Procedure, the Group
Tender Approval Procedure, the Group

Investment Approval Procedure and theBoard’s Procedural Rules, proposedconstruction and development projects
exceeding heat-map thresholds pass throughthe Business Unit Project Board, the Skanska
Tender Board, which consists of the Group
Leadership Team and the Board’s Project

105

Review Committee, which consists of board
members, for scrutiny and approval.
Ongoing projects
Responsibility for managing project risks rests
clearly with the business units’ line management. The Group framework for oversightof ongoing projects consists of the Group
Project Reporting and Review Procedureand the quarterly reporting/review process.
Management of commercial risk in projects
is regulated in part by the Group Claims
Management Policy.

Skanska Tender Approval Procedure: Construction
Activity

Preliminary evaluation of a project with a focus
on our core geographies, expertise, customer,
contracts and partners.

Draft tender with a focus on the main risksand ­opportunities.

Final tender

Responsible

Business unit

Business unit

Business unit

Decision

Proceed or abstain?

Submit tender or abstain?

Contract negotiations

Responsible

Business unit
Group Leadership Team

Business unit
Group Leadership Team
Board of Directors

Business unit

Business unit
Group Leadership Team
Board of Directors

Financial information

Execution according to the c­ ontract with acontinual focus on monitoring risk ando­pportunities.

Skanska Investment Approval Procedure: Commercial Property Development and Residential Development
Activity

Land investment with a focus on location,
zoning, partners, environmental issues andreturn.

Launch of project, considering pricing andpre-sale rate (Residential Development only).

Start of project with a focus on main risksand ­opportunities in the market.

Divestment of project with a focus on
occupancy rate and payment terms(Commercial Property Development only).

Responsible

Business unit

Business unit

Business unit

Business unit

Decision

Proceed or abstain?

Proceed, hold, redevelop or divest?

Proceed, hold, redevelop or divest?

Proceed or hold?

Responsible

Business unit
Group Leadership Team
Board of Directors

Business unit
Group Leadership Team
Board of Directors

Business unit
Group Leadership Team
Board of Directors

Business unit
Group Leadership Team
Board of Directors

Skanska Investment Approval Procedure: Investment Properties

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Activity

Property acquisition with focus on location,
product, tenants, operating income and­potential future value increase.

Investments in owned properties with a focus
on operating net and value increase.

Divestment of a property with focus on­potential value increase and return on
investment.

Responsible

Business unit

Business unit

Business unit

Decision

Proceed or abstain

Proceed or abstain

Proceed or holdResponsible

Business unit
Group Leadership Team
Board of Directors

Business unit
Group Leadership Team
Board of Directors

Business unit
Group Leadership Team
Board of Directors

Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

106Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting

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University Library Jyväskylä Finland

Investors’ calendar and addresses

Financialinformation

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Download PDF to print

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

107

Financial analysis
Skanska Group performance for 2023 was defined by solid delivery in our Construction businessand the impact from weak property markets on our property businesses. Group segment
revenue decreased slightly compared to last year to SEK 157.1 billion. Reduced sales volumes in
Project Development were partly offset by increased revenue in Construction. Operating income
according to segment reporting was SEK 3.2 billion, significantly impacted by low sales volumes
and asset impairment charges/changes in fair market values made in Project Development
and Investment Properties to ensure that reported property asset values reflect the best current
assessment of the underlying value of our assets. IFRS operating income was SEK 5.3 billion, asa result of a solid number of successful handovers of completed, sold homes and commercial
properties.
The operating margin for Construction amounted to 3.5 percent for the year, in line with thelong-term target. A balanced portfolio with exposure to different markets, segments andsectors, in combination with a clear strategy of selective bidding and a strong commercial
focus, provides stability. Order bookings were stable for the year and the book-to-build ratio
was 103 percent. The year-end order backlog remained high and amounted to SEK 229.6 billion,
which is equivalent to 18 months of production.
Sales volumes in the Residential Development business stream were lower than normal in
all of the Nordic markets, while the Central European market remained stable and delivered
healthy results. The portfolio’s average sales rate came down and the number of completed
unsold homes increased during the year. As a result, and to balance the portfolio, fewer homes
have been started and sales activities have focused on completed or nearly completed homes.
When the market is dominated by high uncertainty, homebuyers prefer to buy homes closer tocompletion that are ready to move into in order to allow them to buy and sell in the same market
phase. In 2023, 1,136 (2,052) homes were sold and 868 (2,805) homes started production. At
the end of the year 4,341 (7,015) homes were under construction and 52 percent of these homes
were sold.

Commercial Property Development divested seven properties during the year for a total value of
SEK 4,428 M. As a result of a weaker market, divestments were significantly fewer year-on-year.
The growth strategy has been paused and we are being selective about new project starts. At
the end of the year, the number of ongoing projects amounted to 23, representing a leasablearea of 499,000 square meters, and the number of completed unsold projects amounted to
22 with a total leasable area of 406,000 square meters. Leasing market activity in Central
Europe improved during the year, resulting in a year-on-year stronger leasing performance andnew leases were signed for a total of 213,000 square meters. Tenants focus on sustainability,
amenities and attractive locations, all of which our portfolio of properties can provide.
The Investment Properties business stream was launched in 2022 with the objective ofbuilding a strong portfolio of high-quality office properties in Sweden with a total value of
SEK 12–18 billion. In 2023, we continued to grow this portfolio with two additional officeproperties developed by Commercial Property Development. At year-end, the portfolio
comprised five office properties in Stockholm and Malmö, corresponding to a total property
value of SEK 5.1 billion. The portfolio’s economic occupancy rate was 91 percent. All properties
have the highest sustainability certification, LEED Platinum, and are in attractive locations.
Market outlook
Construction
Our market outlook for Construction encompasses a robust outlook for the US market together
with slightly more cautious assessments for the European and Nordic markets. The building
market in Europe and the Nordics is affected by lower activity and increased competition,
whereas the civil market is more stable. Our US operations are well-positioned toward segments
and sectors that remain strong. Federal investment programs are supporting important
infrastructure investments and activity in many building sectors remains strong.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Residential Development
Activity in the Nordic housing market was low in 2023. We expect market activity to remain
Mdr krsubduedas homebuyers adjust to higher living costs caused by higher interest rates and inflation.
250
However,cuts in interest rates over the next 12 months could stimulate the market. The market
in Central Europe is expected to remain stable with healthy activity among homebuyers.
200

Investment Properties
Tenant demand remains polarized in the Swedish office market. We are noting stronger demandfor high quality, sustainable properties than for older office stock. Tenants prioritize attractive
locations, flexibility and turnkey ready premises. The leasing market remains competitive, butrents in Sweden’s three largest cities are generally expected to remain stable.

Order bookings, order backlog and revenue in Construction
SEK bn250

SEK M
Nordicsof which Sweden
EuropeUSA
Total

Order bookings
2023
2022
63,642
57,832
27,38433,96019,49726,28982,65678,544
165,795
162,665

Order backlog
2023
2022
72,92569,49628,75733,08534,28340,624122,428
119,651
229,637
229,771

Order backlog
The order backlog was essentially unchanged year-on-year and amounted to SEK 229.6 billion(229.8) at year-end. The order backlog corresponded to 18 (17) months of production.
The US, Nordic and European operations accounted for 53, 32 and15 percent respectively of the order backlog.
Segment reporting and IFRSThe Group reports its Residential Development and Commercial Property Development
business streams according to segment reporting, the method is described in Note 1. The
differences between the segment reporting and IFRS for reporting of revenue and operating
income are summarized in the tables that follow.
Revenue

200

150

100

50

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Order bookings
Order bookings amounted to SEK 165.8 billion (162.7), supported by strong order bookings in the
USA and Norway. Order bookings in SEK were 3 percent higher than revenue during the year,
compared with 4 percent higher order bookings than revenue the previous year.
Order bookings and order backlog

Commercial
Property Development
150
The real estate investor market has been hesitant. Few comparable transactions has increased
100
uncertainty
in property valuations. Compared with the historical average, activity is expected
to remain low as the market adjusts to higher interest rates. In 2023, leasing activity improved
in50Central Europe, where a reduced supply of newly built office properties in attractive locations
has started to give rise to a shortage. The Nordic market is stable while the US market continues0
kv1 kv2
kv3 kv4
kv1 kv2
kv1 kv2 to
kv3offices.
kv4 kv1 kv2
kv3 kv4
kv2 kv3 is
kv4a clear trend that supports theto notelower
rates
forkv3
thekv4return
Flighttokv1
quality
2019
2020
2021
2022
2023
demand for newly built office properties. Tenants focus on flexible, sustainable premises with
Intäkter, rullande 12 månader
Orderingång, rullande 12 månader
amenities in Orderstock
attractive locations that help
them attract and retain employees.
Orderingång per kvartal

0108

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019
2020
2021
2022
2023
Revenue, rolling 12 months

Order bookings, rolling 12 months

Order backlog

Order bookings per quarter

SEK M
Revenue by business stream according to segment reporting
Construction
Residential Development
Commercial Property Development
Investment Properties
Central and Eliminations

2023

2022

160,636
5,013
5,331
186
-14,114156,004
8,751
14,27640-17,469

Total revenue according to segment reporting
Difference in accounting principles
Total revenue in accordance with IFRS

157,052
10,116167,168

161,602
1,572
163,174

Revenue according to IFRS increased 2 percent (decreased 1 percent in local currency) to
SEK 167.2 billion (163.2).

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

109

Revenue according to segment reporting decreased 3 percent (decreased 3 percent in local
currency) to SEK 157.1 billion (161.6). In the Construction business stream revenue increased 3
percent in SEK. SEK 12.6 billion (13.6) of revenue in Construction, equivalent to 8 percent (9), wasgenerated by the Group’s Project Development operations. Of the SEK 5,013 M (8,751) revenue in
Residential Development, SEK 80 M (54) arose from joint ventures, which has been included line
by line according to the proportional method in segment reporting.

Commercial Property Development according to segment reporting
Operating income in the Commercial Property Development business stream amounted to
SEK -1,365 M (3,023) and included impairment of property assets of SEK -1,695 M, primarily
pertaining to current-asset properties in the US portfolio, where Skanska is experiencing themarket as weakest. Properties were sold during the year for a value of SEK 4,428 M (13,594),
generating divestment gains of SEK 1,014 M (3,839) and income from joint ventures of
SEK -54 M (165).

Operating income
SEK M
Operating income by business stream according to segment reporting
Construction
Residential Development
Commercial Property Development
Investment Properties
CentralEliminations
Operating income according to segment reporting
Difference in accounting principles
Operating income in accordance with IFRS

2023

2022

5,632
-1,262-1,365
-62
290
-3
3,231
2,051
5,282

5,770
891
3,023
140
-339
-187
9,297
724
10,021

Operating income according to IFRS decreased 47 percent (decreased 46 percent in local
currency) to SEK 5,282 M (10,021).
Operating income according to segment reporting amounted to SEK 3,231 M (9,297) including
impairment of assets and goodwill totaling SEK 3.1 billion due to a weaker property market.
Construction
In the Construction business stream, operating income decreased slightly and amounted to
SEK 5,632 M (5,770). The operating margin decreased slightly year-on-year and amounted to
3.5 percent (3.7), in line with the long-term target of 3.5 percent. The business stream delivered
stable results with robust results for the Nordics and strong result in the USA.
Residential Development according to segment reporting
In Residential Development, operating income amounted to SEK -1,262 M (891). The weak
result was mainly attributable to the SEK -1,117 M impairment of assets, where goodwill
impairment losses totaled SEK -158 M and low sales volumes.
The business stream’s operating margin decreased to -25.2 percent (10.2).

Investment properties
During the year, two properties with a total value of SEK 1,549 M (3,668) were reallocated to
the Investment Properties business stream. Operating income amounted to SEK -62 M (140),of which the change in fair market value amounted to SEK -190 M (112).
CentralCentral amounted to SEK 290 M (-339). This includes income of SEK 1,280 M (397) from the
PPP (public-private partnerships) portfolio where the divestment of Skanska’s ownership of La
Guardia Terminal B in the USA had a positive effect of SEK 794 M. The SEK -119 M impairment
loss for BoKlok’s production facility had a negative impact on Central.
Elimination of intra-Group profits
Elimination of profits on internal projects amounted to SEK -3 M (-187). At the Group level, thisincluded elimination of profits relating to property projects in the Construction business stream.
Eliminations are reversed when the projects are divested.
Return on equity and capital employed according to segment reporting
Return on equity according to segment reporting amounted to 5.8 percent (15.8) andreturn on capital employed in Project Development operations amounted to -3.7 percent (8.1)
according to segment reporting.
Income in accordance with IFRSSEK M
Operating income
Financial income
Financial expense
Net financial items
Income after financial items
Income taxes
Profit for the year

2023
5,282
754
-145
609
5,890
-861
5,029

2022
10,021395-104
290
10,312-2,027
8,284

Financial items amounted to SEK 609 M (290) net, including interest expense from leaseliabilities of SEK -243 M (-222). Tax expense for the year amounted to SEK -861 M (-2,027),
representing a tax rate of 15 percent (20).
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Contents

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

110Group overview

Investments/divestments

Operations

SEK M
Operations – Investments
Investment Properties
Intangible assets
Property, plant and equipment
SharesCurrent-asset propertiesof which Residential Development of which Commercial Property Development
Investments

2023

2022

-26
-20
-2,575-318-19,249-8,655-10,595-22,189-1-24-2,238-696-22,609-10,375-12,233-25,567

Total investments-22,189-25,567

Operations – Divestments
Intangible assets
Property, plant and equipment
SharesCurrent-asset propertiesof which Residential Development of which Commercial Property Development
Divestments

1
477
1,626
17,871
11,4306,441
19,97515476
201
19,844
9,257
10,587
20,537

39
39

197
197

Total divestments

20,014

20,734

Total net divestments (+)/investments (-)-2,175-4,833

Depreciation/amortization, non-current assets-2,747-2,714

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Strategic divestments
Divestment of businesses
Strategic divestments

In Commercial Property Development investments in current-asset properties amounted to
SEK -10,595 M (-12,233), of which SEK -705 M (-1,310) was for land. Divestments of current-asset
properties amounted to SEK 6,441 M (10,587). Net investments in current-asset properties in
Commercial Property Development amounted to SEK -4,154 M (-1,646).
Consolidated operating cash flow
SEK M
Cash flow from business operations
Change in working capital
Net investments (-)/divestments (+)
Accrual adjustments
Cash flow from business operations before taxes paid

2023
6,406
-217
-2,214
-405
3,570

2022
5,885
-1,520-5,030468-198

Taxes paid in business operations
Cash flow from business operations including taxes paid

-1,733
1,837-1,501-1,699Net interest, other financial items and amortization of lease liabilities
Cash flow from financing activities
Cash flow from operations

-689
-689
1,148

-565
-565
-2,263

Net strategic divestments (+)/investments (-)
Dividend, etc.1
Cash flow before change in interest-bearing receivables and liabilities
Change in interest-bearing receivables and liabilities excluding lease liabilities
Cash flow for the year
Cash and cash equivalents, January 1
Exchange rate differences in cash and cash equivalents
Cash and cash equivalents, December 31

39-3,611-2,424
10,373
7,949
10,014-50
17,912

197-4,645-6,711
5,538-1,173
10,947240
10,014-510-507

1 Of which repurchases of Class B shares.

The Group’s investments amounted to a total of SEK -22,189 M (-25,567), while divestments
amounted to SEK 20,014 M (20,734), resulting in net investments of SEK -2,175 M (-4,833).

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Net investments in current-asset properties amounted to SEK -1,378 M (-2,765).
In Residential Development, investments in current-asset properties amounted to
SEK -8,655 M (-10,375), of which SEK -909 M (-2,128) was for acquisitions of land, equivalent
to 1,578 (4,777) building rights. Homes were handed over for a volume of SEK 11,430 M (9,257).
Net divestments of current-asset properties in Residential Development amounted to
SEK 2,775 M (-1,118).

Cash flow for the year amounted to SEK 7,949 M (-1,173).
Cash flow from business operations amounted to SEK 1,148 M (-2,263). The main reasons forthe change in cash flow comprised of the change in working capital and fewer divestments
in Project Development primarily in Commercial Property Development. Divestments by
Commercial Property Development to Investment Properties generate no positive
cash flow, in contrast to external sales. Taxes paid in business operations amounted to
SEK -1,733 M (-1,501). Cash flow for the year was also positively impacted during the yearby the issuance of SEK 4.6 billion in bonds.
Cash flow for the year of SEK 7,949 M (-1,173) combined with currency effects of SEK -50 M (240)increased cash and cash equivalents, which amounted to SEK 17,912 M (10,014).

Contents

Part of the Board of Directors' Report

Annual and Sustainability Report 2023

111

%
30
25

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Commercial Property Development projects sold but not yet transferred as of December 31,
202023, will have a positive effect on cash flow of SEK 5.5 billion in the years 2024 to 2026.
15

Financingand liquidity
10
At the end of 2023, the Group had interest-bearing net receivables amounting to5SEK
9.0 billion (10.3), including SEK 7.0 billion (7.3) in lease liabilities in accordance with IFRS 16.
0

2019
2020
2022
2023
At the endof the year,
cash and2021
cash equivalents
and unutilizedcommitted credit facilities
Avkastningpå
eget
kapital
Avkastningpå
sysselsatt
kapitalamounted to SEK 27.8 billion, of which SEK 18.7 billion is available within one week. The Group’s
total assets increased by SEK 3.6 billion and amounted to SEK 155.2 billion (151.6).

Financial analysis

For financial position, see also Note 6 and Note 14.

Financial statements

Return on equity and capital employed

Notes

%

Auditor’s report

30

Auditor’s review report of the sustainability report

For additional financial information see Note 6 and Note 14.
Parent company
The parent company performs administrative tasks and includes the Group Leadership Teamand Group functions.
Profit for the year amounted to SEK 10,919 M (10,030) and mainly consisted of dividends fromsubsidiaries. The average number of employees was 112 (81).
Senior executive remuneration
The Annual General Meeting (AGM) 2023 adopted the Board of Director’s (the Board) proposal
on guidelines for salary and other remuneration to senior executives. Information about themost recently approved guidelines for determining salaries and other remuneration for the
President and CEO and other senior executives is available in Note 37.

25

Quarterly information
Share data

Equity/assets ratio and debt/equity ratio
The net debt/equity ratio amounted to -0.2 (-0.2) and the equity/assets ratio amounted
to 36.3 percent (36.4).

20

Annual General Meeting

15

Investors’ calendar and addresses

10

Skanska Employee Ownership Program (Seop)
Skanska’s Seop aims to strengthen the Group’s ability to retain and recruit qualified employees
and to align them more closely to the company and its shareholders.

5
0

2019

2020

2021

2022

Return on equity

Return on capital employed2023

At the end of the year, equity attributable to shareholders amounted to SEK 56,202 M (55,111).
Apart from comprehensive income for the year of SEK 4,212 M, the change in equity was mainly
explained by dividends of SEK -3,081 M and share-based payments in connection with the longterm employee ownership programs (Seop) totaling SEK 470 M.

The programs provide employees with the opportunity to invest in Skanska shares while
receiving incentives in the form of the possible allotment (predominantly performance-based) ofadditional shares.
Shares are only allotted following a three-year vesting period. To earn matching shares andperformance shares, employees must have been employed throughout the entire vesting
period and have retained the shares purchased within the program framework.

Return on equity increased to 9.0 percent (17.0).

In 2023, costs related to the Seop program amounted to SEK 470 M (471). See also Note 26 andNote 37.

Capital employed at year-end amounted to SEK 77,360 M (72,845).
Return on capital employed amounted to 8.2 percent (15.2).

The accounting principles applied for the employee ownership programs can be found in Note 1,
IFRS 2 Share-based Payment.
Research and innovation
In 2023, direct research and development expenses amounted to SEK 145 M (61). Skanska’sbusiness units lead the research and development efforts. To coordinate this work andfacilitate knowledge-sharing and scaling throughout the Group, Skanska has a Group function
tasked with creating a Group-wide portfolio of R&D and innovation initiatives. Its focus areas
are climate, workplace safety, productivity, digitalization and the customer offering.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Information on shares
The AGM 2023 resolved on authorizations for the Board to, during the period until the AGM
2024, (i) resolve on acquisitions of not more than 3,500,000 Class B treasury shares on Nasdaq
Stockholm to secure delivery of shares to participants in the Skanska employee ownershipprogram for the financial years 2023, 2024 and 2025 resolved by the AGM 2022 (Seop 6); and(ii) resolve on acquisitions of such number of Class B treasury shares on Nasdaq Stockholmthat the parent company’s holding of own shares after each acquisition amounts to a maximumof one-tenth of the total number of shares in Skanska to give the Board increased freedom ofaction to be able to adapt the company’s capital structure and thereby contribute to increased
shareholder value.
During the year, Skanska repurchased a total of 3,060,000 shares at an average price of
SEK 166.82. All shares were repurchased to secure delivery of shares to participants in the
Seop 6. The average price of all repurchased shares is SEK 146.76. The quota value of the
repurchased shares is SEK 3.00 per share, totaling SEK 9.2 M, and the shares represent
0.7 percent of the total share capital. The cost of acquiring the shares amounted to SEK 510 M.
During the year 2,118,371 shares were allotted to the employees participating in the employee
ownership program. The quota value of these shares is SEK 3.00 per share, totaling SEK 6.4 M,
and the shares represent 0.5 percent of the total share capital. The number of treasury shares
held as of December 31, 2023 amounted to 9,713,560. The quota value of these shares is
SEK 3.00 per share, totaling SEK 29.1 M, and the shares represent 2.3 percent of the total
share capital. The cost of acquiring the shares amounted to SEK 1.4 billion.
Proposed dividend
The Board proposes that the AGM on March 27, 2024 resolves to pay a dividend for 2023 of
SEK 5.50 (7.50) per share. The Board proposes Tuesday, April 2, 2024 as the record date forreceiving the dividend. If the AGM resolves in accordance with the proposal, the dividend is
expected to be distributed by Euroclear Sweden AB on Friday, April 5, 2024. The proposed
dividend amounts to SEK 2 256 M (3,081) in total. No dividend is distributed for the parent
company’s holding of Class B treasury shares. The total dividend disbursed may change by
the record date, depending on acquisitions of Class B treasury shares and the transfer ofClass B shares to participants in Skanska’s long-term employee ownership programs.
The Board’s justification for its proposed dividend
The Board hereby issues the following reasoned statement pursuant to Chapter 18,
Section 4 of the Swedish Companies Act due to the proposed dividend.

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The parent company’s and the Group’s operations, risks in these operations, and governance,
processes and mechanisms for managing these risks, the parent company’s and the Group’s
financial positions as of December 31, 2023, and which accounting principles are applied tovaluing assets and liabilities are described in this Annual and Sustainability Report.
The parent company’s equity amounts to SEK 31.0 billion and the net debt/equity ratio to -0.6.
The Group’s equity amounts to SEK 56.3 billion and the net debt/equity ratio to -0.2 calculated
as of December 31, 2023.

112

The Group’s equity would have been SEK 1.5 billion lower if the financial instruments andinvestment properties, valued at fair value, had instead been valued at the lower of cost of
acquisition and fair value. The proposed dividend reduces the parent company’s equity/assets
ratio from 97.7 percent to 97.6 percent and the Group’s equity/assets ratio from 36.3 percent to35.4 percent, calculated as per December 31, 2023.
In the Board’s assessment, after disbursement of the dividend, the financial strength of theparent company and the Group will remain healthy in relation to the industry in which theparent company and the Group operate. Even taking into account the overall macroeconomic
development as well as the war in Ukraine, it will remain fully sufficient to enable the parent
company and the Group to fulfil their obligations in the short and the long term. In the Board’s
assessment, the parent company and the Group are well prepared to manage any changes inliquidity as well as unexpected events. The Board is of the opinion that the parent company and
the Group have the capacity to take on future business risks and also to withstand any potential
losses. The dividend will not adversely affect the parent company’s and the Group’s capacity tomake commercially motivated investments pursuant to the Board’s strategy.
Given the nature, scope and risks of the operations, the Board deems the proposed dividend
justifiable in view of what is required in terms of the size of the parent company’s and theGroup’s equity, as well as the parent company’s and the Group’s consolidation requirements,
liquidity and financial position in general. In making this assessment, the Board has considered,inter alia, the parent company’s and the Group’s historical and expected development as well as
the state of the market.
Given the above and based on what has otherwise come to the Board’s attention, and following
an assessment of the financial positions of the parent company and the Group, the Board
concludes that the proposed dividend is justifiable taking into account the requirements set
forth in Chapter 17, Section 3 of the Swedish Companies Act.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report

Annual and Sustainability Report 2023

113

Consolidated income statement
SEK M
Revenue
Cost of sales
Gross income
Selling and administrative expenses

Note
8, 9
10, 12, 13, 36, 41

2023
167,168-153,870
13,2972022
163,174-146,483
16,692

10, 11, 12, 13, 36, 38, 41-9,386-8,998Change in value, investment properties

40

175

1,692

Income from joint ventures and associatedcompanies

20

1,195

636

5,282

10,021

Operating income
Financial income

14

754

395

Financial expense

14, 15

-145

-104

609

290

5,890

10,312

Net financial items

Quarterly information
Share data

Consolidated statement of comprehensive income

Income after financial items

Annual General Meeting
Investors’ calendar and addresses

Income taxes

16

Profit for the year-861

-2,027

5,029

8,284

4,998

8,256

31

28

Profit for the year attributable toparent company shareholders
non-controlling interests

Earnings per share, SEK

26, 44

12.17

20.04

Earnings per share after dilution, SEK

26, 44

12.07

19.90

5.50

7.50

Proposed ordinary dividend per share, SEK

SEK M

2023

2022

Profit for the year

5,029

8,284

273

3,818

-64
209

-792
3,026

-947
-4
-23
-7

2,290
14
81
108

-30

178

12
-999

-19
2,653

Other comprehensive income for the year after tax
Comprehensive income for the year

-790
4,239

5,679
13,963Comprehensive income for the year attributable toparent company shareholders
non-controlling interests

4,212
27

13,92043

15717

Other comprehensive income
Items that will not be reclassified to profit or loss for the year
Remeasurement of defined-benefit pension plans1
Tax related to items that will not be reclassified to profit or loss
for the year

Items that have been or will be reclassified to profit or loss
for the year
Translation differences attributable to equity holders
Translation differences attributable to non-controlling interests
Hedging of exchange rate risk in foreign operations
Effect of cash flow hedges
Share of other comprehensive income of joint ventures andassociated companies
Tax related to items that have been or will be reclassified to profit
or loss for the year

1 Effects of social insurance contributions including special payroll tax are included at

See also Note 26.

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Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

114

Consolidated statement of financial position
SEK M

Note

Dec 31, 2023

Dec 31, 2022

ASSETS
Non-current assets

Remuneration report

Investment properties

Risk and opportunity management

Property, plant and equipment

17

8,035

7,803

41

Financial information

Property, plant and equipment, right-of-use assets

3,082

3,256
4,160

40

5,141

3,758

Goodwill

18

3,919

Financial analysis

Other intangible assets

19

348

488

Financial statements

Investments in joint ventures and associated companies

20

2,072

2,901

Notes

Non-current financial assets

21

4,992

3,607

Auditor’s report

Deferred tax assets

16

2,518

995

Auditor’s review report of the sustainability report

Total non-current assets

30,10826,97058,474

Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Current assets
Current-asset properties

22

58,660Current-asset properties, right-of-use assets

41

3,613

3,676

Inventories

23

1,275

1,300

Current financial assets

21

7,498

14,413

Tax assets

16

1,246

1,248

Contract assets

9

7,865

7,772

Trade and other receivables

24

27,012

27,726

Cash and cash equivalents

25

17,912

10,014125,082

124,623

155,189

151,593

Total current assets
ASSETS32 of which interest-bearing non-current financial assets

31

4,954

3,569

31

25,09624,32730,05027,896of which interest-bearing current assets

SEK M
EQUITY
Share capital
Paid-in capital
Reserves
Retained earnings
Equity attributable to equity holders
Non-controlling interests
TOTAL EQUITY
LIABILITIES
Non-current liabilities
Non-current financial liabilities
Lease liabilities
Pensions
Deferred tax liabilities
Total non-current liabilities
Current liabilities
Current financial liabilities
Lease liabilities
Tax liabilities
Current provisions
Contract liabilities
Trade and other payables
Total current liabilities
TOTAL LIABILITIESEQUITY AND LIABILITIESof which interest-bearing financial liabilitiesof which interest-bearing pensions and provisions

Note
26

Dec 31, 2023

Dec 31, 2022

1,260
4,656
4,509
45,77756,202
146
56,347

1,260
4,186
5,504
44,161
55,111
144
55,255

27
41
28
16

7,300
6,137
3,167
2,218
18,822

2,714
6,328
2,891
1,943
13,876

27
41
16
29
9
30

3,615
909
779
11,08723,22040,41080,02098,842
155,189

4,854
953
388
10,36824,05941,84082,462
96,338151,593

17,846
3,167
21,014

14,6992,891
17,59032
31
31Information on the Group’s pledged assets and contingent liabilities can be found in Note 33.

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Contents

Group overview
Operations

Annual and Sustainability Report 2023

115

Consolidated statement of changes in equity

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

SEK M
Equity, January 1, 2022
Profit for the year
Other comprehensive income for the year
Dividend
Repurchase of 2,924,000 Class B shares
Share-based payments
Equity, December 31, 2022

Sharecapital1,260

Paid-in
capital
3,715

Equity attributable to equity holders
Translation
Cash flow
reservehedge reserve
3,259
-394

Retainedearnings
37,5108,256
3,026-4,124
-507

1,260

471
4,186

5,631

-127

44,161

Total
45,351
8,256
5,665-4,124-507
471
55,111

1,260

4,186

5,631

-127

-970

-25

44,161
4,998
209-3,081

55,111
4,998-786-3,081

-510

-510
470
56,202

2,371

267

Non-controllinginterests
114
28
14
-13

144

Total
equity45,4658,284
5,679-4,137-507
471
55,255

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Equity, January 1, 2023
Profit for the year
Other comprehensive income for the year
Dividend
Changes in the Group structure
Repurchase of 3,060,000 Class B shares
Share-based payments
Equity, December 31, 2023

See also Note 26.

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1,260

470
4,656

4,661

-152

45,777

144
31
-4
-20
-5

146

55,255
5,029-790-3,101-5-510
470
56,347

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

116

Consolidated cash flow statement
SEK M
Operating activities
Operating income
Adjustments for items not included in cash flow/items to be included in
cash flow
Income tax paid
Cash flow from operating activities before change in working
capitalCash flow from change in working capital
Investments in current-asset properties
Divestments of current-asset properties
Change in inventories and operating receivables
Change in operating liabilities
Cash flow from change in working capital

2023

2022

5,282

10,021351-1,733-4,640-1,501

3,900

3,880

-18,348
17,871
284
-501
-693

-21,695
19,844-2,7081,188-3,3703,207

510

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

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Cash flow from operating activities
Investing activities
Investments in investment properties
Investments in intangible assets
Investments in property, plant and equipment
Investments in shares
Investments in financial assets
Interest received
Dividends received-26-20-2,575-318-3,736
712
773

-1
-24
-2,238
-696
-677
355
535

Divestment of businesses
Divestments of intangible assets
Divestments of property, plant and equipment
Divestments of shares
Divestments of financial assets
Cash flow from investing activities

39
1
477
1,046
9,624
5,997

197
15
476
201
6,703
4,847

SEK M
Financing activities
Borrowings
Other financial income and expense
Interest paid
Repayment of debt excluding lease liabilities
Amortization of lease liabilities
Dividend to shareholders
Dividend to non-controlling interests
Repurchase of Class B shares
Cash flow from financing activities
Cash flow for the year
Cash and cash equivalents, January 1
Exchange rate differences in cash and cash equivalents
Cash and cash equivalents, December 31
Change in interest-bearing net receivables/net liabilities
SEK M
Interest-bearing net receivables/net liabilities, January 1
Cash flow from operating activities
Cash flow from investing activities excluding change in interestbearing receivables
Cash flow from financing activities excluding change in interestbearing liabilities
Remeasurement of pension liabilities
Net receivables/net liabilities acquired/divested
Translation differences
Other
Interest-bearing net receivables (+)/net liabilities (-), December 31
See also Note 35.

2023

2022

9,534
-285
-819
-5,105-968-3,081-20-510-1,255
7,949
10,014-50
17,912

3,616
38
-466
-4,118-957-4,124-13-507-6,530-1,173
10,947240
10,0142023
10,306
3,207

2022
12,598510108-1,179-5,684
255
21
-52
876
9,037

-6,029
3,100
-51
887
470
10,306

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

117

Consolidated cash flow statement, specification
Consolidated operating cash flow statement and change in interest-bearing net receivables/net liabilities
SEK M
Construction
Cash flow from business operations
Change in working capitalNet divestments (+)/investments (-)
Total Construction

2023

2022

7,954
753
-2,054
6,653

8,172-1,657-1,643
4,871

Residential Development
Cash flow from business operations
Change in working capitalNet divestments (+)/investments (-)
Accrual adjustments1
Total Residential Development

-996
-69
2,404
-43
1,296

-540
62
-1,267205-1,540Commercial Property Development
Cash flow from business operations
Change in working capitalNet divestments (+)/investments (-)
Accrual adjustments1
Total Commercial Property Development

-579
-671
-2,670215-3,705-1,227
137
2,094
263
1,267

129
39
-1,575
3-1,40429
47-3,668Investment Properties
Cash flow from business operations
Change in working capitalNet divestments (+)/investments (-)
Accrual adjustments1
Total Investment Properties

SEK M
Total cash flow from business operations
Total change in working capital
Total net divestments (+)/investments (-)
Total accrual adjustments1
Total cash flow from business operations before taxes paid

2023
6,406
-217
-2,214
-405
3,570

2022
5,885
-1,520-5,030468-198

Taxes paid in business operations
Cash flow from business operations including taxes paid

-1,733
1,837-1,501-1,699Net interest, other financial items and amortization of lease liabilities
Cash flow from financing activities
Cash flow from operations

-689
-689
1,148

-565
-565
-2,263

Net strategic divestments (+)/investments (-)
Dividend, etc.2
Cash flow before change in interest-bearing receivables andliabilities
Change in interest-bearing receivables and liabilities excluding leaseliabilities
Cash flow for the year
Cash and cash equivalents, January 1
Exchange rate differences in cash and cash equivalents
Cash and cash equivalents, December 31

39-3,611

197-4,645-2,424-6,711

10,373
7,949
10,014-50
17,912

5,538-1,173
10,947240
10,014-510-507

1 Refers to payments made during the reporting year related to divestments/investments in prioryears, and unpaid divestments/investments related to the reporting year.
2 Of which repurchase of Class B shares-3,593
See also Note 35.

Central and Eliminations
Cash flow from business operations
Change in working capitalNet divestments (+)/investments (-)
Accrual adjustments1
Total Central and Eliminations

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-102
-268
1,681
-580
731

-548
-108
-546
-1,203

Contents

Group overview
Operations

Annual and Sustainability Report 2023

118

Parent company income statement

Sustainability report

SEK M

Corporate governance

Revenue
Gross income

Note

2023

2022

46

1,213
1,213

768
768

38, 49, 50, 62-1,071

-600

142

168

Remuneration report
Risk and opportunity management

Selling and administrative expenses
Operating income

Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

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Income from holdings in Group companies
Other interest income and similar items
Interest expense and similar items
Income after financial items

47
47
47

10,250565-35
10,9229,788
96-4
10,048

Income taxes
Profit for the year148-3
10,919-18
10,030

1 Corresponds to comprehensive income for the year.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

Annual and Sustainability Report 2023

119

Parent company balance sheet
SEK M
ASSETSNote

Dec 31, 2023

Dec 31, 2022

Non-current assets
Intangible assets

49

6

1

Property, plant and equipment

50

23

0

Non-current financial assets
Holdings in Group companies
Holdings in joint arrangements
Receivables in Group companies
Deferred tax assets
Other non-current receivables
Total non-current financial assets

51
52
53
63
48
51

Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting

12,497
3
18,52655
101
31,182

12,045
3
11,42256
101
23,627

31,211

23,628Investors’ calendar and addresses

Total non-current assets
Current assets
Current receivables
Current receivables in Group companies
Tax assets
Other current receivables
Prepaid expenses and accrued income
Total current receivables

63

54

Total current assets
ASSETS

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59

176
7
131
184
498

16
10
116
22
164

498

164

31,70923,792SEK M
EQUITY AND LIABILITIES

Dec 31, 2023

Dec 31, 2022

1,260
598
1,858

1,260
598
1,858

Retained earnings
Profit for the year
Unrestricted equity

18,216
10,91929,135

11,307
10,03021,337

Total equity

30,99323,195

128
26
154

134
79
213

64
64

276
276

63
344
6
85
498

24
2
5
77
108

31,70923,792EquityShare capital
Statutory reserve
Restricted equity

Note

55

Provisions
Provisions for pensions and similar obligations
Other provisions
Total provisions

56
57

Non-current liabilities
Liabilities to Group companies
Total non-current liabilities

58
63

Current liabilities
Trade payables
Liabilities to Group companies
Other liabilities
Accrued expenses and prepaid income
Total current liabilities

58

EQUITY AND LIABILITIES

59

63

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

120

Parent company statement of changes in equity Parent company cash flow statement
Statutory
reserve
598

SEK M
Equity, January 1, 2022
Profit for the year1
Dividend
Repurchase of 2,924,000 Class B
sharesShare-based payments
Equity, December 31, 2022

Share capital
1,260

1,260

598

Equity, January 1, 2023
Profit for the year1
Dividend
Repurchase of 3,060,000 Class B
sharesShare-based payments
Equity, December 31, 2023

1,260

598

1 Corresponds to comprehensive income for the year.

See also Note 55.

1,260

598

Unrestrictedequity15,46810,030-4,124

Total
equity17,326
10,030-4,124-507
471
21,337-507
471
23,195

21,337
10,919-3,081

23,195
10,919-3,081-510
470
29,135-510
470
30,993

SEK M
Operating activities
Operating income
Adjustments for items not included in cash flow
Income tax paid
Cash flow from operating activities before change inworking capital

2023

2022

142
31
1

168
26
-9

174

185

Cash flow from change in working capital
Change in operating receivables
Change in operating liabilities
Cash flow from change in working capital

-337
287
-50

22
-36
-14

Cash flow from operating activities

124

171

Investing activities
Investments in intangible assets
Investments in tangible assets
Interest received
Dividends received
Decrease in interest-bearing receivables
Group contributions paid
Increase in interest-bearing receivables
Cash flow from investing activities

-8
-30
565
10,250-211-7,104
3,462

Financing activities
Borrowings
Payments from subsidiaries for employee ownership programs
Interest paid
Repayment of debt
Dividend to shareholders
Repurchase of Class B shares
Cash flow from financing activities
Cash flow for the year
Cash and cash equivalents, January 1
Cash and cash equivalents, December 31

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See also Note 61.

96
10,0006-212- 5,753
4,137

142
252
-35
-212
-3,081-510-3,586185-4-4,124-507-4,308

0
0
0

0
0
0

Contents

Group overview

Annual and Sustainability Report 2023

121

Notes including accounting and valuation principles

Operations

Amounts in million Swedish kronor (SEK M) unless otherwise specified.

Sustainability report

Income is reported in positive figures and expense in negative figures.

Corporate governance

Both assets and liabilities are reported in positive figures.

Interest-bearing net receivables/net liabilities are reported in positive
figures if they are receivables and negative figures if they are liabilities.
Accumulated depreciation/amortization and accumulated impairment
losses are reported in negative figures.

Remuneration report
Risk and opportunity management
Financial information

Table of contents, notes

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

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Group
Page
Note 1
Accounting and valuation principles................................................................. 122
Note 2Key estimates and judgments................................................................................ 129
Note 3
Effects of changes in accounting principles................................................. 129
Note 4
Operating segments.................................................................................................... 130
Note 5	Non-current assets held for sale anddiscontinued operations........................................................................................... 133
Note 6	Financial instruments and financial risk management......................... 134
Note 7
Business combinations...............................................................................................142
Note 8
Revenue................................................................................................................................142
Note 9Contract assets and contract liabilities........................................................... 143
Note 10	Operating expenses by category of expense.............................................. 144
Note 11	Selling and administrative expenses................................................................ 144
Note 12 Depreciation and amortization ............................................................................ 144
Note 13	Impairment losses/reversals of impairment losses................................. 145
Note 14
Financial items.................................................................................................................147
Note 15
Borrowing costs...............................................................................................................147
Note 16
Income taxes..................................................................................................................... 148
Note 17
Property, plant and equipment............................................................................. 150
Note 18
Goodwill................................................................................................................................152
Note 19
Other intangible assets.............................................................................................. 153
Note 20 A Subsidiaries....................................................................................................................... 154
Note 20 B	Investments in joint ventures and associated companies................... 154
Note 20 C Joint operations.............................................................................................................. 158
Note 21
Financial assets...............................................................................................................159
Note 22	Current-asset properties/Project Development........................................ 160

Group
Page
Note 23 Inventories........................................................................................................................... 161
Note 24 Trade and other receivables.................................................................................... 161
Note 25 Cash and cash equivalents...................................................................................... 161
Note 26 Equity/earnings per share........................................................................................ 162
Note 27 Financial liabilities......................................................................................................... 164
Note 28 Pensions.............................................................................................................................. 165
Note 29 Provisions.............................................................................................................................169
Note 30 Trade and other payables.........................................................................................170
Note 31	Specification of interest-bearing
net receivables/net liabilities per asset and liability................................. 171
Note 32	Expected recovery periods for assets and liabilities ...............................173
Note 33	Assets pledged, contingent liabilities and contingent assets............174
Note 34	Foreign exchange rates and effect of changes in foreignexchange rates.................................................................................................................175
Note 35 Cash flow statement.....................................................................................................178
Note 36 Personnel............................................................................................................................ 180
Note 37	Remuneration to senior executives andboard members............................................................................................................... 181
Note 38	Fees and other remuneration to auditors....................................................... 186
Note 39 Related party transaction disclosures............................................................. 186
Note 40 Investment properties..................................................................................................187
Note 41
Leases................................................................................................................................... 188
Note 42 Events after the reporting period......................................................................... 190
Note 43 Five-year Group financial summary................................................................... 190
Note 44 Definitions............................................................................................................................195

Parent company
Page
Note 1
Accounting and valuation principles................................................................. 128
Note 45 Financial instruments...................................................................................................198
Note 46 Revenue................................................................................................................................199
Note 47 Financial items.................................................................................................................199
Note 48 Income taxes......................................................................................................................199
Note 49 Intangible assets........................................................................................................... 200
Note 50 Property, plant and equipment............................................................................ 200
Note 51
Non-current financial assets................................................................................. 200
Note 52 Holdings in Group companies................................................................................ 201
Note 53 Holdings in joint arrangements............................................................................. 201
Note 54	Prepaid expenses and accrued income.......................................................... 201
Note 55 Equity.....................................................................................................................................202
Note 56 Provisions............................................................................................................................202
Note 57	Provisions for pensions and similar obligations.........................................202
Note 58 Liabilities.............................................................................................................................202
Note 59	Expected recovery periods for assets and liabilities...............................203
Note 60	Assets pledged and contingent liabilities......................................................204
Note 61
Cash flow statement....................................................................................................205
Note 62 Wages and salaries......................................................................................................205
Note 63 Related party transaction disclosures.............................................................206
Note 64	Disclosures in accordance with the Annual Accounts
Act, Ch. 6, § 2 a.................................................................................................................206
Note 65 Supplementary information....................................................................................207
Note 66 Events after the reporting period.........................................................................207
Note 67 Allocation of earnings.................................................................................................207

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 1. Consolidated accounting and valuation principles
Conformity with laws and standards
In compliance with the ordinance approved by the European Union (EU) on the application of international accounting
standards, the consolidated financial statements have been prepared for the financial year ending on December 31, 2023
according to the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), issued by
the International Accounting Standards Board (IASB), as well as the interpretations by the IFRS Interpretations Committee
and its predecessor, the Standing Interpretations Committee (SIC), to the extent these standards and interpretations havebeen approved by the EU. In addition, the Swedish Financial Reporting Board’s Recommendation RFR 1 Supplementary
Accounting Rules for Groups has been applied, as have the Statements of the Swedish Financial Reporting Board.
Amounts in tables and statements do not always accord with the calculated total of related items due to rounding
differences. The aim is that each line agrees with the source, and therefore, rounding differences may arise that affectthe total when the presented lines are added together.
The parent company applies the same accounting principles as the Group, except in the cases indicated below in thesection Parent company accounting and valuation principles.
The parent company’s annual accounts and the consolidated annual accounts were approved for issuance by
the Board of Directors and the CEO on February 7, 2024. The parent company income statement and balance sheet, andthe consolidated income statement and statement of financial position will be subject to adoption by the Annual General
Meeting on March 27, 2024.
Conditions when preparing the Group’s financial statements
The functional currency of the parent company is Swedish kronor (SEK), which is also the presentation currency of theparent company and of the Group. The financial reports are therefore presented in SEK. All amounts are rounded to thenearest million, unless otherwise stated.
The financial statements have been prepared on the going concern basis.
Preparing the financial statements in accordance with IFRS requires management to make estimates, and assumptions
that affect the application of the accounting principles and the recognized amounts of assets, liabilities, revenue andexpenses. Actual outcomes may deviate from these estimates and assumptions.
Estimates and assumptions are reviewed regularly. Changes in estimates are recognized in the period the change is madeif the change only affects this period, or in the period the change is made and future periods if the change affects boththe period in question and future periods.
Judgments made by management when applying IFRS with a substantial impact on the financial statements andestimates that may lead to significant adjustments in the financial statements of subsequent years are described in
more detail in Note 2.
The accounting principles for the Group described in the following have been applied consistently for all periods that arepresented in the Group’s financial statements, unless otherwise indicated. The accounting principles for the Group havebeen applied consistently in reporting and consolidation of the parent company, subsidiaries, associated companies
and joint arrangements.
New for this year
As a result of a review of the consolidated cash flow statements, changes have been made to the presentation andclassification of items in the consolidated cash flow statements from the fourth quarter of 2023. For a further descriptionof these changes, see Note 35.

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IAS 1 Presentation of Financial Statements has been amended in terms of the accounting principles subject todisclosure. This amendment only requires the disclosure of material information about accounting principles andtherefore Note 1 has not been revised. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been
amended regarding the definition of accounting estimates and judgments. This amendment has not had any material
effect on Skanska’s accounting. IAS 12 Income Taxes has been amended with regard to the exemption from reporting
deferred tax on certain transactions. This exemption may no longer be applied. Moreover, IAS 12 has also been amended
with regard to disclosure requirements related to the OECD pillar 2 rules. A temporary, mandatory exception from thedisclosure of deferred tax pursuant to the above tax rules was concurrently introduced. See Note 16 for a description of
the impact of these amendments on Skanska’s reporting.
Forthcoming amendments to accounting principles
Other new or amended IFRS, including statements, to date adopted by the IASB are not expected to have any material
impact on the Group’s accounts.
IAS 1 Presentation of Financial Statements
Income statement
Items recognized as revenue are: project revenue, compensation for other services performed, divestment of currentasset properties, deliveries of materials and merchandise, rental income and other operating revenue. Revenue fromthe sale of machinery, equipment, non-current-asset properties and intangible assets is not included, but is instead
recognized on a net basis among operating expenses against the carrying amounts of the assets. See Note 10.
Items reported as cost of sales include: direct and indirect manufacturing expenses, loss risk provisions, the carrying
amounts of divested current-asset properties, bad debt losses and warranty expenses. Also included is depreciation on
non-current assets used in construction and property management. Changes in the market value of derivatives related
to operations are recognized in operating income.
Unrealized and realized changes in the value of investment properties are recognized net on a separate line in profit orloss.
Selling and administrative expenses include customary administrative expenses, technical expenses and selling
expenses, as well as depreciation of plant and equipment that have been used in selling and administrative processes.
Goodwill impairment losses are also reported as selling and administrative expenses.
Income from joint ventures and associated companies, after tax, is recognized separately in profit or loss and is included
in operating income.
Among items recognized under financial income are interest income, dividends and other financial income. Financial
expense includes, inter alia, interest expense and other financial expenses. Changes in the market value of financial
instruments, primarily derivatives linked to financing activities, are recognized as a separate sub-item allocated between
financial income and financial expense. The net amount of exchange rate differences and gains/losses on divestmentsof shares are recognized either as financial income or financial expense. Financial income and expense are described in
more detail in Note 6 and in Note 14.
Comprehensive income
Aside from profit for the year, the consolidated statement of comprehensive income includes the items that are included
under Other comprehensive income. These include translation differences, hedging of exchange rate risks in foreign
operations, remeasurement related to pension-linked assets and liabilities, effects of cash flow hedges and tax on these
items.
Statement of financial position
AssetsAn asset is regarded as a current asset if it is expected to be realized within 12 months from the closing day or within
the company’s operating cycle. The operating cycle is the period from the signing of a contract until the company
receives cash payment following a final inspection or delivery of goods (including properties). Since the Group executes
large contracting projects and project development, the operating cycle criterion means that many more assets aredesignated as current assets than if the only criterion were within 12 months.
In Note 32, assets are allocated between amounts for assets that are expected to be recovered within 12 months of theclosing day and assets that are expected to be recovered later than 12 months from the closing day. The allocation between
non-current non-financial assets is based on expected annual depreciation. The division for current-asset properties ismainly based on outcomes during the past three years. This division is even more uncertain than for other assets, since theoutcome during the coming year is strongly influenced by the dates when large individual properties are handed over.
Note 31 shows the allocation between interest-bearing and non-interest-bearing assets.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 1. Consolidated accounting and valuation principles, cont.

EquityThe Group’s equity is allocated between share capital, paid-in capital, reserves, retained earnings and non-controllinginterests.
Acquisitions of treasury shares are recognized as a deduction from retained earnings in equity. Proceeds from thedivestment of treasury shares are recognized as an increase in equity. Any transaction costs are recognized directly inequity.
Dividends are recognized as a liability once the general meeting of shareholders has approved the dividend.
A description of equity, the year’s changes and disclosures concerning capital management are provided in Note 26.
Liabilities
Liabilities recognized as current liabilities comprise liabilities that are either supposed to be paid within 12 months ofthe closing day or – in the case of business-related liabilities only – are expected to be paid within the operating cycle.
Since the operating cycle is taken into account, no non-interest-bearing liabilities, such as trade payables and accrued
personnel expenses, are recognized as non-current. Liabilities that are recognized as interest-bearing due to discounting
are included among current liabilities, since they are paid within the operating cycle. Interest-bearing liabilities arerecognized as non-current even if they fall due for payment within 12 months of the closing day if the original maturity
was longer than 12 months and the entity reaches an agreement on long-term refinancing of the obligation before theend of the reporting period. Information on liabilities is provided in Note 27 and Note 30.

probable, a decision must have been made at management level, and active efforts to locate a buyer and complete theplan must have been initiated. The asset or disposal group must also be actively marketed at a price that is reasonable inrelation to its fair value, and it must be probable that the sale will occur within one year. Skanska also applies the principlethat with regard to a single non-current asset, its value must exceed EUR 100 M.
IAS 28 Investments in Associates and Joint Ventures
The Group’s share of the associated company’s or joint venture’s income after tax is recognized in profit or loss as income
from joint ventures and associated companies. If the Group’s share of recognized losses in an associated company or joint
venture exceeds the carrying amount of the holdings in the consolidated financial statements, the value of the holding is
reduced to zero. Settlement of losses also occurs against long-term unsecured financial assets (subordinated loans), which,in substance, form part of Skanska’s net investment in the associated company or joint venture and are thus recognized asshares. Continued losses are only recognized if the Group has provided guarantees to cover losses arising in the associatedcompany or joint venture, and then as a provision.
Elimination of intra-Group profits
When profits arise from transactions between the Group and an associated company or a joint venture, the portion
equivalent to the Group’s ownership interest is eliminated. If the carrying amount of the Group’s holding in the associatedcompany is less than the elimination of internal profit, the excess portion of the elimination is recognized as a provision. If aloss arises from a transaction between the Group and an associated company or a joint venture, the loss is eliminated only if
it does not correspond to an impairment loss on the asset.

In Note 32, liabilities are allocated between amounts for liabilities to be paid within 12 months of the closing day andliabilities to be paid later than 12 months from the closing day. Additionally, Note 31 also provides information about theallocation between interest-bearing and non-interest-bearing liabilities.

If a profit or loss has arisen in the associated company or in a joint venture, the elimination affects the income for thetransaction year recognized under Income from joint ventures and associated companies. The elimination of the internal
profit is reversed in later financial statements based on how the asset is used or when it is divested.

IFRS 10 Consolidated Financial Statements
The consolidated financial statements cover the accounts of the parent company and the companies in which the parent
company has a direct or indirect controlling interest.

The equity method is applied until the date when the significant influence in an associated company or the joint controllinginterest in a joint venture ceases. The sale of an interest in an associated company or in a joint venture is recognized on thedate that the Group no longer has control over the holding.

Skanska initiates and enters into agreements with newly formed Swedish cooperative housing associations or Finnish
housing corporations for the construction of homes. Under the terms in these agreements Skanska has a controlling interestand thus consolidates the cooperative housing associations and housing corporations during the construction period anduntil the end-customer takes possession, at which point Skanska no longer has a controlling interest. During theconsolidation period, Skanska recognizes the projects in the balance sheet, with the largest items comprising current-asset
properties on the asset side and borrowings for cooperative housing associations and housing corporations are recognizedas part of the Group’s interest-bearing liabilities. Homes not yet transferred are recognized as current-asset properties.

Note 20 B provides information about associated companies and joint ventures.
IFRS 11 Joint Arrangements
Contracting projects executed in collaboration with outside contracting companies, with joint and several liability, arereported by Skanska as joint operations. If the joint arrangement is a separate company but the vast majority of thecompany’s production is acquired by the co-owners and there is no obstacle to its sale to an external party, the joint
arrangement is often considered to be a joint operation. In other cases, the arrangement is a joint venture.
If the co-owners of the joint arrangement only have rights to the net assets of the arrangement, it is a joint venture.

Intra-Group receivables, liabilities, revenue and expenses are eliminated in their entirety in the preparation of theconsolidated financial statements.

For joint operations the revenue, costs, assets and liabilities of the joint operation are included line by line in the consolidated
financial statements according to Skanska’s interest in the joint operation. Joint operations are described in Note 20 C.

Gains that arise from intra-Group transactions and that are unrealized from the standpoint of the Group on the closing
day are eliminated in their entirety. Unrealized losses on intra-Group transactions are also eliminated in the same way as
unrealized gains, to the extent that the loss does not correspond to an impairment loss.

The equity method is used for joint ventures when preparing the consolidated financial statements. This method is describedunder the heading IAS 28.

Goodwill attributable to foreign operations is expressed in the functional currency. Translation to SEK is in accordancewith IAS 21. Information on goodwill is provided in Note 18.
IFRS 3 Business Combinations
If the acquisition does not relate to business operations, as is normally the case when Skanska acquires properties, IFRS
3 is not applied. In such cases, the acquisition cost is instead allocated among the individual identifiable assets andliabilities based on their fair values on the acquisition date, without recognizing goodwill and any deferred tax assets/tax
liability resulting from the acquisition.

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123

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
If a non-current asset or disposal group is to be classified as held for sale, the asset (disposal group) must be available
for sale in its present condition. It must also be highly probable that the sale will occur. In order for a sale to be highly

In connection with PPP projects, the Group’s investment may both include holdings in and subordinated loans to a joint
venture. Both are treated in the accounts as participations in joint ventures.
Note 20 B provides information about joint ventures and a specification of significant holdings in joint operations is given in
Note 20 C.
IFRIC 12 Service Concession Arrangements
IFRIC 12, which affects Skanska’s joint ventures within the PPP portfolio, deals with the question of how the operator of aservice concession should account for the infrastructure, as well as the rights it receives and the obligations it undertakes
under the agreement. The operator constructs or upgrades infrastructure (construction or upgrade services) used toprovide a public service and maintains the infrastructure (operation services) for a specified period of time. Construction
or upgrade services and operation services are reported in accordance with IFRS 15. The consideration may be rights toa financial asset or an intangible asset. If the operator has an unconditional right to receive cash and cash equivalents

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 1. Consolidated accounting and valuation principles, cont.

in specified or determinable amounts (the consideration model is based on availability through the provision of, forexample, a hospital or an airport), a financial asset is recognized. IFRS 9 requires interest to be calculated on this financial
receivable. The customer does not pay until the facility is put into operation, and the payment received is then reported
as a reduction in the financial receivable. If the operator is instead entitled to charge the users of the public service (theconsideration model is based on market risk through, for example, road tolls) an intangible asset is recognized, which isamortized over the life cycle of the project. The road tolls received in payment are recognized as revenue.

the commencement of construction, this is a performance obligation on its own, which means that the construction work
becomes a separate performance obligation within the Construction business stream.

IFRS 15 Revenue from Contracts with Customers
Under IFRS 15 revenue is recognized based on a five-step model. Step one involves identifying the contract with a customer.
If two or more contracts are entered into with a customer at the same time and the price of one contract is dependent on theother contract, the contracts are combined.

The combination of contracts rarely occurs. In some cases, Skanska also assists the investor with renting out the property,
an undertaking that is then deemed to be a separate performance obligation. The transaction price is usually a fixed priceaccording to the terms of the contract.

The Construction business stream builds and renovates buildings, industrial facilities and infrastructure. Within the businessstream, it also executes service-related assignments, such as construction services, facility operations and maintenance.
This business serves both public and private sector customers.

When the customer contract for the sale of the property is signed, there is no alternative use for the property. If Skanska isentitled to payment for any work performed to date, this would depend on the contractual terms and conditions and on theapplicable legislation. Skanska’s assessment is, however, that it usually assumes this right only when fulfilling a contract
obligation. Prior to the completion of a project, Skanska normally only has the right to an indemnity not equal to accrued
expenses. Revenue is therefore normally recognized at the point in time when the property is handed over to the customer.

A combination of contracts happens rarely, but contract modifications, such as those related to supplementary orders, arecommon. In most cases the added goods or services are not distinct and therefore form part of a single performance obligationthat is partially met at the time of the contract modification and is reported as being a part of the existing contract.
Most often the contracts within this business stream contain only one performance obligation. Performance obligations in
the Construction business stream comprise the construction contract or the service that is to be delivered, for example theconstruction of a building on the customer’s land or the maintenance of existing facilities, such as roads. If an agreement
involves operations in different geographical locations, delivered during different time periods or with different risk
exposures, the breakdown into several performance obligations may be relevant.
If there is a right to variable remuneration, such as incentive agreements, this is taken into account to the extent that it
is highly unlikely it will be reversed at a later date. Revenue is recognized over time in the Construction business stream,when the customer simultaneously receives and consumes the benefits provided through the entity’s performance or when
Skanska creates or enhances an asset that the customer controls.
Revenue is recognized over time, determined each quarter, on the basis of accumulated project expenses in relation toestimated accumulated project expenses upon completion of the performance obligation.
The Residential Development business stream develops and sells new residential units, including rental units. Its customers
are mainly from the private sector. The basis for recognizing revenue is usually an agreement to sell a specific unit, such as acondominium. Contract modifications are rare, but are included in the original contract if they do occur.
Skanska’s performance obligation in the Residential Development business stream is the handing over of a home that isready for occupation. The transaction price is a fixed price according to the terms of the sales agreement.
Revenue is recognized at the point in time when the keys to the home are handed over to the individual homebuyer. In otherwords, it is recognized when the homebuyer has taken possession of the home and has full control over it as the owner. Thisis based on Skanska being deemed not to be entitled to full payment until fulfillment of its contract obligation. Even if acertain advance payment is made by the buyer, for the entire duration of the contract, Skanska is not entitled to full payment
for the work completed to date. This is due to the fact that sales contracts contain clauses that allow homebuyers in certain
situations to withdraw from the contract during construction without reimbursing Skanska in the manner required for therecognition of revenue over time.

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124

The development of commercial projects is a continuous process with a number of clearly defined phases. The averagedevelopment cycle from the initial project idea to its completion is five to seven years. Divestment normally occurs at the endof the cycle, when a project is completed. The performance obligation is to hand over a fully developed property that usually
becomes an investment holding of the customer.

As stated under the heading IFRS 8 Operating Segments later in this Note, Segment reporting compared with IFRS
reporting, segment reporting applies a different principle to establish when revenue is recognized for the Commercial
Property Development business stream.
It is considered appropriate to recognize the sale of current-asset properties through divestment of companies inaccordance with IFRS 15 and not as divested companies under IFRS 10 as it is an asset that is being divested, not acompany with a business.
In the Investment Properties business stream, Skanska owns properties for the purpose of generating rental income andincreases in value. Once leases have been signed with tenants, they are considered to essentially contain lease components
and rental income is recognized according to IFRS 16. In cases where Skanska also bills the tenant for services, the contract
also contains distinct non-lease components. The payment in this case is recognized according to the rules in IFRS 15.
The PPP portfolio includes development of hospitals, airports, roads and other necessary social infrastructure. The
accounting of these projects complies with IFRIC 12 Service Concession Arrangements, which in turn recognizes revenue inaccordance with IFRS 15.
Contract assets and contract liabilities are recognized net of accrued revenue and invoiced amounts per project. Construction
contracts often allow for invoicing in advance. Once an amount has been invoiced, a trade receivable is recognized.
Onerous contracts are expensed immediately and provisions for losses are made for the remaining work to be done andrecognized in accordance with IAS 37.
IFRS 16 Leases
Skanska as a lessee
Leases, with the exception of short-term leases (less than 12 months) and leases where the underlying asset is of low value,
are recognized in the Statement of financial position as: property, plant and equipment, right-of-use assets; current-asset
properties, right-of-use assets; and interest-bearing lease liabilities.

As stated under the heading IFRS 8 Operating Segments later in this Note, Segment reporting compared with IFRS
reporting, segment reporting applies a different principle to establish when revenue is recognized for the Residential
Development business stream.

A contract is a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for aconsideration. Non-lease components in a contract, such as servicing costs, are separated out and not included in thecalculation of the value of the right-of-use asset where it is possible to separate such costs. Contracts with subcontractors
are generally considered to be service agreements since Skanska is requesting a service and the contract does not give
Skanska control over a specific asset. The hire of tower cranes and scaffolding, which in large construction projects are
generally hired for a long period, is reported as leases.

In the Commercial Property Development business stream Skanska initiates, develops, leases and sells investment holdingsin the form of commercial properties to real estate investors.

When assessing whether an asset is of low value, the asset is grouped with assets on which it is heavily dependent or withwhich it is linked.

Within this business stream the performance obligation to the customer (the real estate investor) is to deliver aninvestment holding in the form of a commercial property, usually with tenants. If legal ownership is transferred prior to

Current-asset properties right-of-use assets, which are in practice always extended, are considered to be perpetual rights ofuse and the lease term is then set at 100 years.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 1. Consolidated accounting and valuation principles, cont.

Rights of use for property, plant and equipment are depreciated over the lease term except in the case of perpetual rights
of use of land, which are not depreciated at all since the remaining lease term is always a constant 100 years. Rights
of use for current-asset properties – both those considered to be perpetual and those with a fixed lease term – are notdepreciated at all since they are reported in accordance with IAS 2.
When making payments on a lease, the payment is divided between interest expense and a reduction of the remaining
liability. Payments relating to right-of-use assets that are not depreciated are recognized entirely as interest expense,
since – as mentioned earlier – the liability is unchanged. The interest expense is capitalized during the construction
period in the case of rights of use for current-asset properties.
Skanska as lessor
Skanska rents out premises primarily through operating leases. Lease payments received for these leases are recognized asrevenue on a straight-line basis over the lease term.

of time for completion, which in the Group’s case mainly means the construction of current-asset properties and properties
for the Group’s own use (non-current-asset properties). Capitalization occurs when expenditure included in the acquisition
cost has arisen and activities to complete the building have begun. Capitalization ceases when the building is completed.
Borrowing costs during an extended period when work to complete the building is interrupted are not capitalized. If separate
borrowing has occurred for the project, the actual borrowing cost is used. In other cases, the cost of the loan is calculated on
the basis of the Group’s borrowing cost.
IAS 2 Inventories
Aside from customary inventories of goods, the Group’s current-asset properties are also encompassed by thisaccounting standard. Current-asset properties and inventories of goods are both measured item by item in accordancewith the lowest cost principle, which means that a property or item is measured either at cost or net realizable value,
whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimatedcost of completion and the estimated costs necessary to make the sale.

IAS 16 Property, Plant and Equipment
Property, plant and equipment that consist of parts with different useful lives are treated as separate components ofproperty, plant and equipment. Depreciation is performed on a straight-line basis during the estimated useful life, orbased on degree of use, taking into account any residual value at the end of the period. The depreciation periods applied
for office buildings breaks down as follows: foundation and frame, 50 years; installations, 35 years; and non-weightbearing components, 15 years. In general, industrial buildings are depreciated over a 20-year period without allocation
into separate components. Stone crushing and asphalt plants as well as concrete mixing plants are depreciated over
10 to 25 years depending on their condition when acquired and without being divided into separate components. For
other buildings and equipment, division into separate components occurs only if major components with different useful
lives can be identified. For other plant and equipment, the depreciation period is normally between three and 10 years.
Minor equipment is recognized as an expense immediately. Gravel pits and stone quarries are depreciated as materials are
removed. Land is not depreciated. Assessments of an asset’s residual value and useful life are performed annually.

Except for properties that are used in Skanska’s own business and for investment properties, the Group’s property
holdings are reported as current assets, since these holdings are included in the Group’s operating cycle. The operating
cycle for current-asset properties is around three to five years.

The carrying amount of a property, plant and equipment item is derecognized from the statement of financial position when
it is disposed of or divested, or when no further economic benefits are expected from the use or divestment of the asset.

Current-asset properties are divided up between Commercial Property Development and Residential Development.
They are also categorized as Development properties, Properties under construction and Completed properties. Note 22
provides information about these properties.

Repairs are not capitalized and are instead recognized as an expense as they occur.
IAS 38 Intangible Assets
Development expenses, which are expenses for designing new or improved materials, structures, products, processes,
systems and services by applying research findings or other knowledge, are recognized as assets if it is probable thatthe asset will generate future revenue. Other development expenses are recognized directly as an expense. Expenses
for regular maintenance and modifications of existing products, processes and systems are not recognized as adevelopment expense. Nor is work performed on behalf of a customer recognized as a development expense.
Amortization is recognized in profit or loss on a straight-line basis, or based on the degree of use, over the useful life of intangible
assets, to the extent such a period can be determined. Consideration is given to any residual value at the end of the period.
Patents are amortized over 10 years. Investments in major computer systems are amortized over a maximum of seven years.
IAS 36 Impairment of Assets
Impairment losses are determined using the recoverable amounts for the assets. For goodwill, the cash-generating
unit is mainly the same as the Group’s business unit or other unit reporting to the parent company. If the business unit
operates in more than one business stream, the cash-generating unit is no larger than the identified business stream
to which goodwill has been allocated. Operations that are not integrated into the business unit’s other operations are
exempted from the main rule.
In Construction and Residential Development, the recoverable amount of goodwill is based on value in use, which is
calculated by discounting expected future cash flows. The discounting factor is the weighted average cost of capital(WACC) applicable to the operation. See Note 18.

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IAS 23 Borrowing Costs
Borrowing costs are capitalized provided that it is probable that they will result in future economic benefits and the costs canbe measured reliably. Generally speaking, capitalization of borrowing costs is limited to assets that take a substantial period

Acquisitions of properties are recognized in their entirety only upon the transfer of legal ownership, which normallyoccurs on completion of the purchase. Property acquisitions through purchases of property-owning companies arerecognized when ownership of the shares has been transferred to Skanska.
When item-by-item measurement cannot be applied, the cost of inventories is assigned by using the first-in, first-out(FIFO) formula and includes expenditure that has arisen from the acquisition of inventory assets and from bringing themto their present location and condition. For manufactured goods, cost includes a reasonable share of indirect costs
based on normal capacity utilization. Materials not yet installed at construction sites are not recognized as inventories,
but are included among project expenses.

Before impairment losses, properties, both those completed and those under construction, are valued based on costs
paid directly, a reasonable proportion of indirect costs and interest expense during the construction period. Information
on market appraisal of properties is provided in Note 44.
Information on customary inventories of goods is provided in Note 23.
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Provisions
Skanska makes provisions for future expenses relating to warranty obligations pursuant to construction contracts
that involve a liability for the contractor to remedy errors and omissions that are discovered within a certain period
after the contractor has handed over the property to the customer. Such obligations may also be required by law.
Onerous contracts are recognized in the form of a provision for the remaining work to be done.
A provision is made for disputes related to completed projects if it is probable that a dispute will result in an outflow ofresources from the Group.
When accounting for interests in joint ventures and associated companies, a provision is made when a loss exceeds the
carrying amount of the holding and the Group has a payment obligation.
Contingent liabilities
The amounts of contract fulfillment guarantees are included until the contracted work has been transferred to thecustomer, which normally occurs upon its approval in a final inspection. If the guarantee covers all or most of thecontract sum, the amount of the contingent liability is calculated as the contract sum minus the value of the portion
performed. In cases where the guarantee only covers a small portion of the contract sum, the guarantee amountremains unchanged until the contracted work is handed over to the customer. The guarantee amount is not reduced
by being offset against payments not yet received from the customer. Guarantees that have been received from

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Group overview
Operations
Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

126

Note 1. Consolidated accounting and valuation principles, cont.

subcontractors and suppliers of materials are not taken into account either. If the Group receives reciprocal guarantees
related to external consortium members’ share of joint and several liability, these are not taken into account.
In connection with contracting assignments, collateral is often provided in the form of a completion guarantee
from a bank or insurance institution. The issuer of the guarantee, in turn, normally receives an indemnity from thecontracting company or other Group company. Such indemnities related to the Group’s own contracting assignments
are not reported as contingent liabilities, since they do not involve any increased liability compared to the contracting
assignment.

IAS 7 Statement of Cash Flows
In preparing its cash flow statement, Skanska applies the indirect method in accordance with the accounting standard.
Aside from cash and bank balance flows, cash and cash equivalents are to include short-term investments whose
conversion into bank balances may occur in an amount most of which is known in advance. Short-term investments withmaturities of less than three months are regarded as cash and cash equivalents. Cash and cash equivalents that are
subject to restrictions are reported either as current receivables or as non-current receivables.

Note 33 presents information about contingent liabilities.

In addition to the cash flow statement prepared in accordance with the standard, the Report of the Directors presents anoperating cash flow statement that does not conform to the structure specified in the standard. The operating cash flow
statement was prepared on the basis of the operations that the different business streams carry out.

Financial statements

Assets pledged
Participations in joint ventures within the PPP portfolio business stream are reported as assets pledged when the sharesin the project company, which may be directly owned by Skanska or owned via an intermediate holding company, arepledged as collateral for loans from banks or lenders other than the co-owners.

IAS 33 Earnings per Share
Earnings per share are reported directly below the consolidated income statement and are calculated by dividing the
portion of profit for the year that is attributable to the parent company’s equity holders (shareholders) by the average
number of shares outstanding during the period.

Notes

Note 33 provides information about assets pledged.

For the Seop 5 and Seop 6 employee ownership programs, the dilution effect is calculated by adding potential ordinary
shares to the number of ordinary shares before dilution. The calculation of potential ordinary shares occurs in twostages. First there is an assessment of the number of shares that may be issued when established targets are reached.
The number of shares for the respective program year is then determined the following year, provided that the conditionof continued employment is met. In the next step, the number of potential ordinary shares is reduced by the value of theconsideration that Skanska is expected to receive, divided by the average market price of a share during the period.

Risk and opportunity management
Financial information
Financial analysis

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

IAS 19 Employee Benefits
Calculation of defined-benefit pension plans in accordance with IAS 19 is carried out in a way that often deviates fromlocal rules in each country. Obligations and costs are calculated according to the projected unit credit method. The
purpose is to recognize expected future pension disbursements as expenses in a way that yields more uniform expenses
over the employee’s period of employment. Actuarial assumptions about the discount rate, wage or salary increases,
inflation and life expectancy are taken into account in the calculation. Pension obligations for post-employment benefits
are discounted to present value. Discounts are calculated for all three countries where Skanska has defined-benefit
pension plans using an interest rate based on the market return on high quality corporate bonds including mortgage
bonds, with maturities matching the pension obligations. Plan assets in pension funds are recognized at fair valueon the closing day. In the statement of financial position, the present value of pension obligations is recognized after
subtracting the fair value of plan assets. The pension expense and the return on plan assets recognized in profit or loss
refer to the pension expense and return estimated at the start of the year. The return on plan assets is calculated using
the same interest rate as is used to discount the pension obligations. Any differences compared to the actual pension
expense and actual return, as well as effects of changed assumptions, together constitute remeasurement and arereported in Other comprehensive income.
The Group’s net obligation related to other long-term employee benefits, aside from pensions, amounts to the value of
future benefits that employees have earned as compensation for the services they have performed during the current
and prior periods. The obligation is calculated using the projected unit credit method and is discounted to present value,
and the fair value of any plan assets is subtracted. The discount rate is again based on the yield on high quality corporate
bonds including mortgage bonds, or government bonds, with a maturity matching the maturity of the obligations. See
Note 28.
IFRS 2 Share-based Payment
The Seop 5 and Seop 6 employee ownership programs are recognized as share-based payments settled with equity
instruments, in accordance with IFRS 2. This means that the fair value is calculated on the basis of market value atthe time of investment (which is the same as the time of allotment according to the standard) and expected fulfillmentof targets. This value is allocated over the respective vesting period. After the fair value is established, there is no
reappraisal during the remainder of the vesting period, except in the case of changes in the number of shares because
the condition of continued employment during the vesting period is no longer met.

IAS 40 Investment Property
Investment properties are properties that are owned for the purpose of generating rental income and increases in value.
Note 40 provides information about these properties.
Investment properties are reported at fair value, applying IFRS 13 Level 3 in the fair value hierarchy. An internal valuationis performed for each property in conjunction with the quarterly and annual financial statements. An external valuationof each property is performed annually in collaboration with an independent external appraiser. Fair value is calculatedusing a yield-based appraisal method based on cash flow analysis. The calculation period is at least 10 years. Unrealized
and realized changes in value are recognized net on a separate line in profit or loss.
A previous current-asset property or a property used in the Group’s own operations is reclassified as an investment
property when the property’s area of use has changed. When a current-asset property or a property used in the Group’s
own operations is reclassified as an investment property, the difference between the property’s fair value on the date oftransfer and its previous carrying amount is recognized in profit or loss.
A property may be classified as an investment property even if Skanska leases part of the area. In this case, Skanska’spart must not amount to a significant proportion of the total area of the property. Otherwise, the property must beclassified as a current-asset property or a property used in Skanska’s own operations.
If an investment property is reclassified as a current-asset property or a property used in the Group’s own operations, theestimated cost in subsequent reporting is the fair value on the date that its area of use changed.
IFRS 8 Operating Segments
Skanska’s operating segments are its business streams: Construction, Residential Development, Commercial Property
Development, and Investment Properties.
The Group Leadership Team is the Group’s chief operating decision maker.

Social insurance contributions
Social insurance contributions that are payable in connection with share-based payments are reported in accordancewith statement UFR 7 from the Swedish Financial Reporting Board. The cost of social insurance contributions is allocatedover the period when the services are performed. The provision that arises is reappraised on each financial reporting
date to correspond to the estimated contributions that are due at the end of the vesting period.

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The principle for segment reporting of Residential Development and Commercial Property Development in the income
statement deviates from IFRS on two points. In segment reporting, a divestment gain is recognized on the date a binding
sales contract is signed between the buyer and seller. The contract may include clauses under which the buyer in certain
situations can withdraw from the contract during construction, in most cases involving reimbursement to Skanska.
The risk of withdrawal over time is deemed low. In segment reporting, joint ventures are recognized within Residential
Development line by line according to the proportional method of accounting. This means that Construction’s revenue

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

Note 1. Consolidated accounting and valuation principles, cont.

from joint ventures within Residential Development operations is eliminated in segment reporting. Note 4 presents areconciliation between segment reporting and the income statement in accordance with IFRS.
Note 4 provides information about operating segments. Financial reporting to the Group Leadership Team focuses on
the areas for which each respective operating segment is operationally responsible: operating income in the income
statement and capital employed. For each respective operating segment, the note thus reports external and internal
revenue, cost of sales, selling and administrative expenses, and capital employed. Capital employed refers to total
assets minus tax assets and receivables invested in Skanska’s treasury unit (internal bank) less non-interest- bearing
liabilities excluding tax liabilities. In the calculation of capital employed, a capitalized interest expense is removed fromtotal assets for the Residential Development and Commercial Property Development segments. Goodwill has beenreported in the operating segment to which it relates.

Financial analysis

In transactions between operating segments, pricing occurs on market terms.

Financial statements

Certain parts of the Group do not belong to any operating segment. These are reported in Note 4 under the heading
Central and eliminations. Operating segment income includes intra-Group profits and, consequently, these are
eliminated during reconciliation with the consolidated income statement and the consolidated statement of financial
position.

Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

IAS 32 Financial Instruments: Presentation
Offsetting of financial assets and financial liabilities occurs when an entity has a legal right to offset items against eachother and intends to either settle these items on a net basis or simultaneously divest the asset and settle the liability.
Prepaid income and expenses are not financial instruments. Accrued income and expenses that are related to thebusiness are not recognized as financial instruments. Thus, contract assets and contract liabilities are not included
under financial instruments. Obligations for employee benefit plans in accordance with IAS 19, such as pension plans,
are exempt from IAS 32 and are thus not recognized as financial instruments. Assets and liabilities that are not based oncontracts, such as income taxes, are not considered financial instruments.
Information in compliance with the accounting standard is provided mainly in notes 6, 21 and 27.
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments addresses the recognition of financial assets and liabilities. Categories exempt fromapplication in accordance with IFRS 9 include holdings in subsidiaries, associated companies and joint ventures, leases,
rights under employment contracts, treasury shares, financial instruments as described in IFRS 2, and rights andresponsibilities within IFRS 15 except for the rights in IFRS 15 where an impairment requirement in accordance with IFRS
9 applies. All financial instruments, including derivatives, are recognized as a financial asset or financial liability in thestatement of financial position when the entity becomes a party to the contractual provisions of the instrument.
The presentation of financial assets is based on the entity’s business model and the contractual cash flows of the asset.
A financial asset is measured at amortized cost if the asset is held within the framework of a business model the objectiveof which is to hold financial assets in order to collect contractual cash flows, and the cash flows on specified dates aresolely payments of principal and interest on the principal amount outstanding.
A financial asset is measured at fair value through other comprehensive income if the asset is held according to abusiness model the objective of which can be achieved both by collecting contractual cash flows and by selling financial
assets, and the cash flows are solely payments of principal and interest on the principal amount outstanding. A financial
asset is measured at fair value through profit or loss if it is not measured at amortized cost or at fair value through othercomprehensive income.

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All financial liabilities are measured at amortized cost with the exception of:a) f inancial liabilities measured at fair value through profit or loss (such liabilities, including derivatives that are liabilities,
are thereafter to be measured at fair value);b) f inancial liabilities arising when a transfer of a financial asset does not meet the criteria for derecognition from thestatement of financial position or where a continued commitment is appropriate;c) financial guarantee contracts;d) a loan commitment with interest that is below the market interest rate; ande) a contingent consideration acknowledged by an acquiring party in connection with a business combination covered by
IFRS 3 (such contingent consideration is thereafter measured at fair value with changes recognized through profit or loss).
An entity is to apply the impairment requirement to expected credit losses on financial assets and a loss allowance for theseis to be recognized as a deduction from the asset. On every closing day the loss allowance is to be equivalent to an amountcorresponding to the expected credit losses for the remaining time until maturity if the credit risk has increased significantly
since initial recognition. If the credit risk has not increased significantly since initial recognition, the loss allowance is to beequivalent to 12 months of expected credit losses. For trade receivables, contract assets and lease receivables, the loss
allowance is always to be at an amount equivalent to the remaining time to maturity. An entity is to measure expectedcredit losses taking into account an objective and probability-weighted amount, the time value of money, reasonable andsupportable information about past events, current conditions and forecasts of future economic conditions.
The purpose of hedge accounting is so that, in its financial statements, an entity can report the effect of its risk
management where financial instruments are used to manage exposure from specific risks that would impact results.
To a limited extent, Skanska uses hedge accounting for cash flow hedges and hedging of net investment in foreign
operations. Hedge accounting is used for cash flow hedges when a future cash flow is attributable to a recognized asset
or liability or a highly probable future transaction. Hedge accounting for hedging of net investments in foreign operations
is applied when the net investment is in line with IAS 21.
The Swedish Financial Reporting Board’s recommendation RFR 1 Supplementary Accounting Rules for Groups
The recommendation specifies what further disclosures must be provided in order for the annual accounts to comply
with Sweden’s Annual Accounts Act. The additional information mainly relates to disclosures on personnel.
Disclosures on the average number of employees, gender distribution and distribution among countries are provided
in Note 36. The average number of employees during the year was calculated as an average of the average numberof employees during the quarters in the year. In this calculation, part-time employment is equivalent to 60 percent offull-time employment. Employees belonging to operations divested during the year are included up until the date ofdivestment. Employees of acquired companies are included from the date of acquisition.
Information on the gender distribution among senior executives refers to the situation on the closing day.
Senior executives in the various subsidiaries refers to the members of the management teams of the respective business
units. This information is provided in Note 36 and Note 37.
In addition to board members and the CEO, all other persons in the Group Leadership Team must be included in thegroup for which a separate account is to be provided of the total amounts of salaries and other remuneration, as well as
expenses and obligations related to pensions and similar benefits. Furthermore, the same disclosures must be provided
individually for each of the board members and for the CEO, as well as individuals previously holding these positions.
Employee representatives are exempted.
Note 36 provides information about loans, assets pledged and contingent liabilities from which any board member or
CEO within the Group has benefited.
Information is also provided on fees to auditors and the accounting firms where the auditors work. See Note 38.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 1. Parent company accounting and valuation principles
The parent company has prepared its annual accounts in compliance with the Annual Accounts Act and the Swedish
Financial Reporting Board’s Recommendation RFR 2, Accounting for Legal Entities. According to RFR 2, the annual
accounts of the legal entity must apply the International Financial Reporting Standards (IFRS) and International
Accounting Standards (IAS) issued by the International Accounting Standards Board (IASB), to the extent these havebeen approved by the EU, as well as the interpretations by the IFRS Interpretations Committee and its predecessor theStanding Interpretations Committee (SIC), as far as this is possible within the framework of the Annual Accounts Act
and taking into account the connection between accounting and taxation. A presentation of the various accounting
standards can be found in the Group Note 1. The statements of the Swedish Financial Reporting Board must also be
applied.
Important differences compared to consolidated accounting principles
In accordance with RFR 2, IFRS 9 is not applied to financial guarantee agreements benefiting subsidiaries, associatedcompanies and joint ventures. Instead, IAS 37 is applied, which normally means that provisions for these measures are
not recognized since it is unlikely that an outflow of resources will be required to settle the obligation.
In compliance with RFR 2, IFRS 16 is not applied to leases. Instead lease payments are recognized on a straight-line basis
over the term of the lease, unless a different systematic approach better reflects the economic benefit over time.
Group contributions are recognized in accordance with the general rule in RFR 2. Group contributions received fromsubsidiaries are recognized as financial income. Group contributions issued paid by the parent company to subsidiaries arerecognized as increases in holdings in Group companies.
The Seop 5 and Seop 6 employee ownership programs are recognized as share-based payments settled with equity
instruments, in accordance with IFRS 2. The portion of the Group’s expense for these employee ownership programs
that relates to employees of subsidiaries is recognized in the parent company as an increase in the carrying amountof holdings in subsidiaries and an increase in equity. When the amount to be debited to the subsidiary is established,a transfer is made to receivables from subsidiaries. Where compensation from subsidiaries for shares that have been
allocated deviates from the previously reported increase in the carrying amount of holdings in subsidiaries, the carrying
amount of holdings in subsidiaries is reduced to the portion of the amount that does not exceed the previously reported
increase. Any remaining portion of the compensation is recognized directly in equity.
The income statement and balance sheet conform to the presentation formats in the Annual Accounts Act.
Defined-benefit pension plans are reported according to the regulations in the Pension Obligations Vesting Act.
Pension obligations secured by assets in pension funds are not recognized in the balance sheet.
Similar to holdings in subsidiaries, holdings in associated companies and joint arrangements are also carried at cost
before any impairment losses.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 2. Key estimates and judgments
A. Key estimates and judgments
The Group Leadership Team has discussed with the Board and the Audit Committee the developments and disclosuresrelating to the Group’s important accounting principles and estimates, as well as the application of these principles andestimates.

B. Other estimates
Climate-related risks
Climate change includes physical risks such as extreme weather events and transition risks in the transition to a lowcarbon economy.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amountsof assets and liabilities within the next financial year are as follows:

Where appropriate, the Group takes into account climate-related matters in estimates and assumptions, andrecognizes climate-related risks and opportunities. Skanska has also assessed that its business model and products
will remain commercially viable after the transition to a low-carbon economy. Skanska’s current assessment is that theclimate-related risks have no material impact on the financial statements, but closely monitors relevant changes anddevelopments, such as new climate-related legislation. The points and considerations that are most directly affected byclimate-related matters are:

Goodwill impairment testing
When calculating the recoverable amount of cash-generating units to determine if there is any goodwill impairment,
several assumptions about future conditions and estimates of parameters have been made. These are presented in Note
18. As understood from the description in this Note, important changes in the basis for these assumptions and estimatesmight have a substantial effect on the value of goodwill.
Pension assumptions
Skanska has defined-benefit pension plans in a number of countries. The plans are recognized in accordance with IAS 19,
which means that pension commitments are calculated using actuarial assumptions and that plan assets are measured
at market value on the closing day. The effects of changed actuarial assumptions and changes in the market value ofplan assets are recognized as remeasurements in other comprehensive income. The remeasurements impact interestbearing pension liabilities and equity.
The assumptions and prerequisites that provide the basis for recognition of pension liability, including a sensitivity
analysis, are presented in Note 28.
Revenue recognition over time
Skanska applies revenue recognition over time in the Construction business stream. This means that, based on projected
final project results, income is recognized successively during the course of the project according to its degree ofcompletion. In order to do this, project revenue and project expenses must be able to be reliably determined. This in turnrequires that the Group has efficient, coordinated systems for calculation, forecasting and revenue/expense reporting.
The method also requires consistent assessment (forecasts) of the final outcome of the project, including analysis ofdeviations from earlier assessments. This critical assessment is performed at least once every quarter. However, actual
future project outcomes may deviate, either positively or negatively, from this assessment.
Disputes
Although management’s best judgment is used in reporting disputed amounts, the actual future outcomes may deviate
from the judgment made. See Note 33 and Note 29.
Current-asset properties
Skanska measures current-asset properties at the lower of cost or net realizable value based on the prevailing pricelevels in the respective location of the individual properties. The assessment of net realizable value is based on anumber of assumptions, such as changes in the supply of similar properties, as well as changes in demand, changes inyield requirements and changes in the leasing market. Changes in assumptions made can result in changes in carrying
amounts and give rise to impairment losses.
In Commercial Property Development, the estimated net realizable value for ongoing projects is assessed for each
property once it is completed after taking into consideration the expected occupancy rate.
In Residential Development the supply of capital and the price of capital for financing homebuyers’ investments are
critical factors. The net realizable value assessed here too is the value of the properties once they are completed andtaking into account the value that may be added in a normal economic cycle.

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Investment Properties
For critical assumptions and judgements in connection with measurement of investment properties, see Note 40.
Skanska recognizes its investment properties at fair value where realized and unrealized changes in value are recognizedin profit or loss. Results may therefore be affected significantly by changes in market price levels and by changes inassumptions when measuring at fair value.

• Investments in land and right-of-use assets where Skanska recognizes that the physical risks posed by extreme weather
conditions, such as flooding, make it important to evaluate the long-term sustainability of its land investments.
• Current-asset and investment properties where all properties maintain a high level of sustainability with low carbon
emissions, which enables the long-term sustainability of property values.
• Investments in production machinery and facilities, where the transition to more sustainable fuels and electric power
must be taken into consideration when planning and developing facilities and the equipment park.
• Financing, where due to external regulations, the credit market and lenders are setting increasingly stringent
requirements with various forms of links between sustainability and the use and cost of capital. The Group’s use andcost of capital is not materially affected by this.
Prices of goods and services
In the Skanska Group’s operations there are many different forms of contractual mechanisms. The degree of risk
associated with the price of goods and services varies greatly depending on the contract type.
Sharp increases in material prices may pose a risk, particularly to long-term projects with fixed-price commitments. A
shortage of personnel and certain inputs may also adversely impact operations. Delays in the design phase or changes
in design are other circumstances that may adversely affect projects.
Investments in the PPP portfolio
The estimated investment amounts are presented in Note 20 B. Estimated market value is based on discounting
anticipated cash flows for each respective investment. Estimated yield requirements on investments of this type havebeen used as discount rates. Changes in anticipated cash flows, which in a number of cases extend 20–30 years into the
future, and/or changes in yield requirements, may materially affect both the estimated values and the carrying amounts
for each investment. The risk of a significant impact is gradually reduced as the number of projects declines.

Note 3. Effects of changes in accounting principles
The accounting rules pursuant to IAS 12 Income Taxes have been amended effective January 1, 2023. The previous
exemption from reporting deferred tax on certain transactions may no longer be applied. See Note 16 for a description of
the impact on Skanska’s reporting.
No changes in accounting principles took place in 2022.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Note 4. Operating segments
Skanska’s business streams – Construction, Residential Development, Commercial Property Development andInvestment Properties – represent the Group’s operating segments. From January 1, 2023, residential rental units in
Sweden have been reallocated to the residential rental property portfolio under Commercial Property Development.
Previously, these have been reported within the business stream Residential Development. Historical financial datafrom 2021 and 2022 has been restated to reflect this reallocation. These business streams coincide with Skanska’s
operational organization used by the Group Leadership Team to monitor operations. The Group Leadership Team is also
Skanska’s chief operating decision maker.
Each operating segment carries out distinct types of operations associated with different risks.
Construction includes both building construction and civil construction.
Residential Development develops residential projects for immediate sale. Homes are adapted for selected customer
categories. The units in this segment are responsible for planning and selling projects.
Commercial Property Development initiates, develops, leases and divests commercial property projects. Project
Development focuses on office buildings, retail, life science and logistics properties.
Construction assignments for the Residential Development and Commercial Property Development segments are
performed in most markets by Skanska’s Construction segment. Intra-Group pricing between operating segments
occurs on market terms.
The Investment Properties business stream owns and manages properties for the purpose of generating rental income
and increasing value. Rental income is recognized on a straight-line basis over the lease term. Changes in the value ofinvestment properties are recognized every quarter.
The segment Central includes the cost of Group headquarters, earnings of central companies and operations that are
being discontinued. Eliminations consist mainly of profits in Construction operations related to property projects.
See also note 1.
Revenue and expenses by operating segment
Each business unit within the business streams has operating responsibility for its income statement down throughoperating income.
Assets and liabilities by operating segment
Each business unit within the business streams has operating responsibility for its capital employed. The capital
employed by each business stream consists of its total assets minus tax assets and intra-Group receivables invested
in Skanska’s treasury unit (internal bank) less non-interest-bearing liabilities excluding tax liabilities. In the calculationof capital employed, a capitalized interest expense is removed from total assets for the Residential Development andCommercial Property Development segments.
Acquisition goodwill has been reported in the business stream to which it belongs.
Cash flow by segment is presented as a separate statement: Consolidated operating cash flow statement andchange in interest-bearing net receivables.

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130

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

131

Part of the Board of Directors' Report

Note 4. Operating segments, cont.

5,013-5,346-332-930

Commercial
Property
Development
3,729
1,602
5,331
-5,747
-416
-895

17
5,632

-1,262-54-1,365of which depreciation/amortization of which impairment losses/reversals of impairment losses  Goodwill  Other assets of which gains from sale of commercial properties of which gains from sales from PPP portfolio-2,543

-19

-100

-17

-158
-959

-1,695
1,014

Average number of employees
Gross margin, %Selling and administrative expenses, %Operating margin, %Net leasing
Economic occupancy rate, %Surplus ratio, %25,826
7.7
-4.2
3.5

2023
External revenue
Revenue from internal customers
Total revenue
Cost of sales
Gross income
Selling and administrative expenses
Change in value, investment properties
Income from joint ventures and associated companies
Operating income

Construction
148,002
12,634
160,636-148,213
12,423-6,808Residential
Development
5,013

524
-6.6
-18.5
-25.2

Investment
Properties
180
6
186
-49
137
-9
-190
-62

428

Total
operatingsegments
156,924
14,242
171,166-159,354
11,812-8,641
-190
-38
2,943

Differencein accounting
principles
10,116

1,279
290

-3

Total
segments
157,0520
157,052-145,851
11,200-9,386
175
1,242
3,231

-2,662-87

3-2,747-2,747-158-2,671
1,014

-119

141
108

830

-158
-2,649
1,122
830

-158
-2,649
1,927
830

478

27,256

26,778Central
127
236
363
-608
-244
-744

Eliminations-14,478-14,478
14,111-367-1365

10,116-8,019
2,097

-46
2,051

806

Total IFRS
167,1680
167,168-153,870
13,297-9,386
175
1,195
5,282

16
91
74

Assets, of which
Investment Properties
Property, plant and equipment (including right-of-use assets)
Intangible assets Investments in joint ventures and associated companies
Current-asset properties (including right-of-use assets)
Capital employed

10,5374,046
292
1-8,05551156
449
21,104
14,406359
18
146
41,98040,760Investments
Divestments
Net investments-2,531516-2,015-9,038
11,442
2,404-10,668
7,999-2,670160,636

5,013
13,862-7,171-80-60
11,5655,331
8,871-5,302-1,262
2,263-1,023-42
4-60-1,365
1,469
-718

-62

-615

-62

Reconciliation from segment reporting to IFRSRevenue according to segment reporting – binding contracts
Plus properties sold before the periodLess properties not yet occupied by the buyer on closing day
Plus revenue of joint ventures in Residential Development
Exchange rate differences
Revenue in accordance with IFRS – handoverDownload PDF to print

Operating income according to segment reporting – binding contracts
Plus properties sold before the periodLess properties not yet occupied by the buyer on closing day
Plus operating income of joint ventures in Residential Development
Exchange rate differences
Operating income according to IFRS – handover

5,141

160,636
5,632

5,632

1
8,901

5,076
-1,575-1,575
186

186

5,141
10,9484,220
887
63,08452,18725,174-23,813
19,957-3,856

-53
1,619
1,566

171,166
22,733-12,474-80-58
181,287
2,943
3,732-1,741
-42
4
4,895

5,141
11,117
4,267
2,072
62,27377,3605,141
11,117
4,267
2,072
62,27377,3601,678-1,562
116-22,189
20,014-2,175-22,189
20,014-2,175363-14,478-94

363-14,483

157,052
22,724-12,470-80-58
167,168

290

-3
121
-26

169
47
1,193

290

-7
-811

4
96

3,231
3,852
-1,767-42
75,282

Contents

Group overview

Annual and Sustainability Report 2023

132

Part of the Board of Directors' Report

Note 4. Operating segments, cont.

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Residential
Development
8,727
24
8,751
-7,077
1,674-783

Commercial
Property
Development
10,362
3,914
14,276-10,418
3,857
-999

36
5,770

891

165
3,023

of which depreciation/amortization of which impairment losses/reversals of impairment losses  Goodwill  Other assets of which gains from sale of commercial properties of which gains from sales from PPP portfolio-2,506-18-89-2,613

-1
-24

-7

-43
3,839

-1
-74
3,839

Average number of employees
Gross margin, %Selling and administrative expenses, %Operating margin, %Net leasing
Economic occupancy rate, %Surplus ratio, %26,892
7.9
-4.2
3.7

2022
External revenue
Revenue from internal customers
Total revenue
Cost of sales
Gross income
Selling and administrative expenses
Change in value, investment properties
Income from joint ventures and associated companies
Operating income

Construction
142,389
13,615
156,004-143,736
12,268-6,534

565
19.1
-9.0
10.2

Investment
Properties
40
40
-10
30
-2
112
140

437

Total
operatingsegments
161,518
17,554179,071-161,242
17,829-8,318
112
201
9,824

27,894

Differencein accounting
principles
1,572

425
-339

1,581
-3
-187

Total
segments
161,6020
161,602-145,622
15,981-8,998
1,692
622
9,297

-103

2

-2,714-2,714

183

-1
-74
3,951
183

-1
-74
4,230
183

486

28,380Central
85
364
449
-534
-85
-680

Eliminations-17,918-17,918
16,154-1,764

112

1,572
-861
711

13
724

279

Total IFRS
163,1740
163,174-146,483
16,692-8,998
1,692
636
10,02108675Assets, of which
Investment Properties
Property, plant and equipment (including right-of-use assets)
Intangible assets Investments in joint ventures and associated companies
Current-asset properties (including right-of-use assets)
Capital employed

10,3484,217
302
1-7,37846331
138
23,11916,346401
19
139
39,84638,547

Investments
Divestments
Net investments-2,210764-1,446-10,615
9,349-1,267-12,294
14,3892,094

156,004

8,751
14,166-13,862
-54
519
9,521

14,276
9,555-8,871

Reconciliation from segment reporting to IFRSRevenue according to segment reporting – binding contracts
Plus properties sold before the periodLess properties not yet occupied by the buyer on closing day
Plus revenue of joint ventures in Residential Development
Exchange rate differences
Revenue in accordance with IFRS – handoverDownload PDF to print

Operating income according to segment reporting – binding contracts
Plus properties sold before the periodLess properties not yet occupied by the buyer on closing day
Plus operating income of joint ventures in Residential Development
Exchange rate differences
Operating income according to IFRS – handover

156,004
5,770

5,770

891
2,527
-2,263
15
175
1,346

110
15,0693,023
1,668-1,469
28
3,250

3,758
1

3,733
-3,668-3,668
40

40
140

140

3,758
10,795
4,567
579
62,966
51,247

21,597-28,788
24,501-4,287

-722
150
-572

179,071
23,721-22,733-54629
180,634

449

9,824
4,195
-3,73215
203
10,506

267
81
2,330

3,758
11,0594,648
2,901
62,15072,845

3,758
11,0594,648
2,901
62,15072,845

3,943-3,917
26-25,567
20,734-4,833-25,567
20,734-4,833-17,918

161,60223,721-22,724-54
629
163,174

-3
-7
-816

9

449

-17,909

-339

-187
92
-121

-339

71
-145

9,297
4,287
-3,85215
274
10,021

Contents

Annual and Sustainability Report 2023

Group overview

Note 4. Operating segments, cont.

Operations

External revenue in accordance with IFRS by geographical area
SwedenSustainability report
Corporate governanceConstruction

UK

Other1

Total

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

28,04828,59917,647

17,44871,05065,867

17,228

16,226

14,02914,250148,002142,389

406

96

647

1,734

4,738

3,987

11,560

9,506

982

1,656

25

55

1,633

5,731

7,299

11,155

180

40

9

15

72,041

67,537

5,768

3,688

Commercial Property Development

4,660

3,714

Risk and opportunity management

Investment Properties

180

40

Central and Eliminations

49

70

70

38,705

36,111

18,123Financial analysis

Norway2022

Residential Development

Total operating segments

USA

2023

Remuneration report

Financial information

133Part of the Board of Directors' Report

17,544

17,89918,015

20,40023,968

1 The Group has no customers that account for 10 percent or more of Group revenue.

Financial statements
Notes

Non-current assets and current-asset properties by geographical area

Auditor’s report

Quarterly information
Share data

Property, plantand equipment

Investment Properties

Auditor’s review report of the sustainability report

Dec 31, 2023

Dec 31, 2022

NorwaySweden

5,141

3,758

Intangible assets

Investments in joint ventures
and associated companies

Current-asset properties

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

3,205

2,918

1,077

1,318

407

55

4,533

Dec 31, 2022
4,121

2,473

2,360

661

756

1,106

1,097

12,98016,030

Annual General Meeting

UK

1,217

1,355

1,406

1,386

7

6

3,890

4,661

Investors’ calendar and addresses

USA

2,471

2,622

484

537

321

1,513

18,072

15,813

Other1

1,751

1,804

640

652

231

231

22,79921,525

11,117

11,059

4,267

4,648

2,072

2,901

62,27362,150

5,141

3,758

1 No geographical area with revenue accounting for 10 percent or more of the Group’s total items is included.

Note 5. Non-current assets held for sale and discontinued operations
Non-current assets held for sale and discontinued operations are recognized in accordance with IFRS 5.
See Note 1. No operations were recognized as discontinued in 2023 or 2022.
At the end of both 2023 and 2022, there were no non-current assets that under IFRS 5 are to be recognized as current
assets and specified as assets held for sale.

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127

85

167,168

163,174

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 6. Financial instruments and financial risk management
Financial instruments are recognized in accordance with IFRS 9 Financial Instruments, IAS 32 Financial Instruments:
Presentation and IFRS 7 Financial Instruments: Disclosures.
Skanska’s contract assets and contract liabilities are not recognized as financial instruments and, accordingly, nor is therisk associated with these receivables and liabilities in this note.
Risks in partly owned joint venture companies in the PPP portfolio are managed within each respective joint venture.
Skanska’s aim is to ensure that financial risk management within these companies is equivalent to that applied to theGroup’s wholly owned companies. As the contract period in many cases amounts to decades, management of theinterest rate risk in financing is essential in each joint venture. This risk is managed using long-term interest rate swaps.
These holdings are recognized according to the equity method of accounting, which entails inclusion of each joint
venture’s financial instruments under the item Income from joint ventures and associated companies. Information on
financial instruments in joint ventures and associated companies is not included in the following disclosures.
Financial risk management
In addition to business risk, Skanska is exposed, through its operations, to various financial risks such as credit risk,
liquidity risk and market risk. These risks arise in the Group’s reported financial instruments such as cash and cash
equivalents, interest-bearing receivables, trade receivables, trade payables, borrowings and derivatives.

Maximum exposure is equivalent to the fair value of the assets and amounts to SEK 27,223 M (25,620).
The average maturity of interest-bearing assets amounted to 0.2 years (0.3) as of December 31, 2023. The Group’s
financial interest-bearing assets as of December 31, 2023, primarily consisting of bank balances and investments inshort-term debt instruments, were still considered to have a low credit risk as of the closing day as the assets have a highcredit rating and thus the loss allowance for these assets is based on 12 months of expected credit losses.
Interest-bearing assets and derivatives
Maximum exposure in receivables outstandingof which derivatives

Objectives and policy
The Group endeavors to achieve a systematic assessment both of financial and of business risks.
To do this a common risk management model is used. The risk management model does not involve avoidance of risk
but is instead aimed at identifying and managing the risks.
Through the Group’s Finance Policy, each year the Board of Directors establishes guidelines, objectives and restrictions
for management of the Group’s finances and financial risk. Skanska’s Group Governance Framework regulates
the distribution of responsibility among Skanska’s Board, the Group Leadership Team, Skanska Financial Services(Skanska’s Group Function for financial services) and the business units.

The objectives and policy for each type of risk are described in the respective sections below.
Credit risk
Credit risk describes the Group’s risk from financial assets and arises if a counterparty does not fulfill its contractual
payment obligations to Skanska. Credit risk is divided into financial credit risk, which is risk associated with interestbearing assets and derivatives, and customer credit risk, which refers to the risk from trade receivables.

Dec 31, 2023

Dec 31, 2022

27,22325,620321

100

Less adjustment from fair value

39-8

Loss allowance for expected credit losses

-16

-16

Carrying amount27,24625,596

Change in impairment losses on interest-bearing assets and derivatives

2023

2022

16

11

16

16

January 1

Within the Group, Skanska Financial Services has operational responsibility for securing Group financing and for
managing liquidity, financial assets and financial liabilities. A centralized financial unit enables Skanska to leveragesynergies and economies of scale.

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134

Loss allowance for expected credit losses
December 31

5

Customer credit risk – risk in trade receivables
Customer credit risk is managed using the Skanska Group’s common review and approval procedures for identifying andmanaging risks: the Skanska Tender Approval Procedure (STAP) and Project Scrutiny and Approval Procedure (PSAP).
Skanska’s credit risk with regard to trade receivables has a high degree of risk diversification due to the large number ofprojects of varying sizes and types with numerous different customer categories – many of which are in the public sector– in a large number of geographical markets.
The portion of Skanska’s operations related to construction projects extends only limited credit, since projects are
invoiced in advance as much as possible. In other operations, the extension of credit is limited to customary invoicing
periods.
Impairment losses on trade receivables amounted to SEK 284 M (296), of which SEK 121 M (132) pertained to the loss
allowance for expected credit losses according to IFRS 9.
Trade receivables
Receivables outstanding

Dec 31, 2023

Dec 31, 2022

14,676

15,468Financial credit risk – risk in interest-bearing assets and derivatives
Financial credit risk is the risk that the Group is exposed to in its relationships with financial counterparties wheninvesting surplus funds and with respect to balances with banks and investments in financial assets. Credit risk in theform of counterparty risk also arises when using derivatives and is the risk that a potential gain will not be realized if thecounterparty does not fulfill its part of the contract.

Impairment losses

-284

-296

Carrying amount

14,392

15,172

Change in impairment losses, trade receivables

2023

2022

According to the policy, Skanska must limit its exposure to financial counterparties by using banks and financial
institutions assigned a high credit rating by rating agencies Standard & Poor’s, Moody’s or Fitch. The permitted exposurevolume per counterparty is dependent on the counterparty’s credit rating and the maturity of the exposure. To reducethe credit risk associated with derivative instruments, the Group has also signed standardized netting agreements (ISDAagreements) with all financial counterparties with whom Skanska enters into derivative contracts.

January 1

296

324

Impairment losses for the year

30

18

Reversals of impairment losses

-31

-1

Impairment losses settled

-11

-62

When investing surplus funds, the objective is to always achieve good risk diversification. At year-end, the surplus funds
had primarily been invested with larger banks with a global presence, mainly from the Nordics, Europe, the USA andJapan, and in short-term interest-bearing instruments and money market funds. Skanska currently uses around 10 banks
for derivative transactions.

December 31

Exchange rate differences

1

17

284

296

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report

Annual and Sustainability Report 2023

135

Note 6. Financial instruments and financial risk management, cont.

Risk in trade and other receivables including shares
Other financial operating receivables consist of receivables for properties divested, accrued interest income, deposits, etc.
On the closing day no operating receivables were past due and there were no impairment losses.
Holdings with less than 20 percent of voting power in a company are reported as shares. Their carrying amount was
SEK 38 M (38).
Other financial operating receivables are reported by time interval with respect to when the amounts fall due in the future.
Dec 31, 2023 Dec 31, 2022
Due within 30 days

1039

Due in over 30 days but within one year

97

402

Due after one year

571

11

Total

164

452

Liquidity and refinancing risk
Liquidity and financing risk is defined as the risk of Skanska not being able to meet its payment obligations due to lack ofliquidity or due to difficulties in obtaining or rolling over external loans.

Quarterly information

The Group uses liquidity forecasting as a means of identifying and managing the fluctuations in short-term liquidity.

Share data

Surplus liquidity is, if possible, to be used primarily to repay the principal on loan liabilities.

Annual General Meeting

Financing
Skanska has several borrowing programs, both committed bank credit facilities and market funding programs, which
provide good preparedness for temporary fluctuations in the Group’s short-term liquidity requirements and ensure
long-term funding. Skanska does not have a credit rating.

Investors’ calendar and addresses

In 2023, Skanska arranged new credit facilities totaling EUR 250 M with maturities of two years and with the option ofextending for one further year. The syndicated backup facility was increased from EUR 500 M to EUR 571 M by expanding
the group of banks from seven to eight participating banks. The facility was concurrently extended by one year until 2028.
During the year, a USD 50 M bilateral loan matured; this was refinanced and increased by a further USD 25 M. Furthermore,a new USD 75 M bilateral loan was arranged comprising two tranches with respective maturities of four and six years.
Skanska updated its green bond framework in 2023 and in conjunction issued SEK 4.65 billion in green bonds, of which
SEK 750 M with a maturity of two years, SEK 2,400 M with a maturity of three years and SEK 1,500 M with a maturity offive years.
At the end of the year, the central debt portfolio amounted to SEK 8.8 billion (3.7). The unutilized credit facilities of
SEK 9.9 billion (6.1) in combination with interest-bearing net receivables excluding cash and cash equivalents withrestrictions, lease liabilities and net pension liabilities of SEK 10.4 billion (12.1) ensure that the Group has sufficientfinancial capacity.
Liquidity reserve and maturity structure
The objective is to have a liquidity reserve of at least SEK 4 billion available within one week in the form of cash liquidity or
unutilized committed credit facilities. At year-end, cash and cash equivalents, and unutilized committed credit facilities
amounted to SEK 27.8 billion (16.1), of which SEK 18.7 billion (12.3) is, or is expected to be, available within one week.
The Group’s policy is for the central loan portfolio’s maturity structure to be distributed over time and to have a weighted
average residual term of three years, including unutilized committed credit facilities, with authorization to deviate withina two- to four-year interval. On December 31, 2023, the average maturity of the loan portfolio was 3.4 years (3.6), if
unutilized credit facilities are taken into account.
Including interest payments, the maturity structure of the Group’s financial interest-bearing liabilities, derivatives andlease liabilities is distributed over the next few years according to the table on the next page. For lease liabilities the
future payments are in undiscounted amounts.
At year-end the Group’s unutilized committed credit facilities amounted to SEK 9,866 M (6,053).
Dec 31, 2023

Maturity
Market funding programs
Commercial paper (CP) program, maturities 0–1 years
Medium-term note (MTN) program, maturities 1–10 years

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Committed credit facilities
Bilateral credit facility
Bilateral credit facility
Syndicated credit facility
Syndicated credit facility
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Bilateral loan agreement
Other credit facilities

2024
2025
2025
2028
2023
2024
2024
2025
2027
2027
2028
2029
2030

Currency

Limit in currency

SEK/EURSEK/EURSEK 6,000 M
SEK 8,000 M

USD
EUR/USD/SEK
EUR/USD/SEK
EUR/USD/SEK/GBP
USD
USD
USD
EUR
EUR
USD
USD
USD
USD

USD 25 M
EUR 50 M
EUR 200 M
EUR 571 M
USD 50 M
USD 50 M
USD 100 M
EUR 50 M
EUR 50 M
USD 35 M
USD 35 M
USD 40 M
USD 40 M

Dec 31, 2022

Limit in SEK

Utilized

Limit in SEK

6,000
8,000

4,644

6,000
8,000

480

14,0004,644

14,000

480

5,538
519
519
1,037
553
553

519
519
1,037
553
553

515
9,234

3,181

250
554
2,218
6,337
501
1,001
554
554
350
350
400
400
508
13,977

501
1,001
554
554
350
350
400
400
2
4,111

UtilizedContents

Annual and Sustainability Report 2023

Group overview

Note 6. Financial instruments and financial risk management, cont.

Operations

Dec 31, 2023

Sustainability report
Corporate governance
Remuneration report

136

Maturity

Maturity period

Carrying
amountFuturepayment amount

Within3 months

After 3 months
within 1 year

After 1 year
within 5 years

After 5 years

11,215

12,144

63

3,854

7,226

1,002

-6,450-6,239

-187

-25

115

6,549

6,334

188

26

781

2,779

Interest-bearing financial liabilities
Derivatives: Currency forward contracts

Inflow
Outflow

Risk and opportunity management

Derivatives: Interest rate swaps

Financial information

Lease liabilities

7,047

29,226307

Trade payables

13,105

13,105

13,105

Financial analysis
Financial statements
Notes
Auditor’s report

Inflow
Outflow

Trade and other payables

Maturity period

Share data

Interest-bearing financial liabilities

Investors’ calendar and addresses

369

366

1

2

54,943

13,936

4,637

10,00826,361

Carrying
amountFuturepayment amount

Within3 months

After 3 months
within 1 year

After 1 year
within 5 years

After 5 years

7,887

7,936

53

4,707

3,175

-10,343-10,031-304-810,49010,176306

8Maturity

Dec 31, 2022

Auditor’s review report of the sustainability report

Annual General Meeting369
31,851

Total

Quarterly information

Derivatives: Currency forward contracts

Inflow
Outflow

Derivatives: Interest rate swaps

25,359150

Inflow-6

Outflow

-6

7

3

4

Lease liabilities

7,281

29,653281

741

Trade payables

13,99813,99813,998Trade and other payables
Total

694

694

438

256

30,01052,42914,918

5,704

2,895

25,736

6,070

25,736

The average maturity for interest-bearing liabilities excluding lease liabilities and unutilized committed credit facilities was 2.8 years (1.2).

Market risk
Market risk is the Group’s risk that the fair value of financial instruments or future cash flows from financial instruments
will fluctuate due to changes in market prices. The main market risks in the consolidated accounts are interest rate risk
and exchange rate risk.

Fair value sensitivity is measured using three different scenarios: a base scenario with an interest rate increase of one
percentage point across all maturities, or an increase or decrease of the base scenario’s slope by half of a percentage
point over the term. According to this policy, the change in fair value may not exceed SEK 150 M for any of these threeinterest scenarios.

Interest rate risk
Interest rate risk is the risk that changes in interest rates will adversely affect the Group’s financial items and cash flow
(cash flow risk) or the fair value of financial assets and liabilities (fair value interest rate risk).

As of December 31, 2023, the change in fair value estimated using the scenarios above would impact financial items in
the range of SEK 21–48 M (18–53) and other comprehensive income by SEK 0 M (0), as hedge accounting was notapplied to interest rate swap contracts outstanding. All amounts are stated before tax. Equity would thus be affected by
SEK 17–39 M (14–42) taking tax into account.

To limit the risk, the interest-rate maturities for financial assets and liabilities are to match to the greatest extent possible
in the respective borrowing currencies.
When calculating the Group’s sensitivity to changes in interest rates, all interest-bearing assets, liabilities and derivatives
are included, with the exception of pensions and lease liabilities. For interest rate risk related to pensions, see Note 28.
The analysis is based on the assumption that the position as of December 31, 2023 will remain the same in terms of
the size of net debt, the ratio of fixed and variable interest rates, and the percentage of financial instruments in foreign
currencies.

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The Group’s cash flow risk must not exceed SEK 150 M over a 12-month period in the event of an increase of one
percentage point in market interest rates. Assuming the volume and fixed interest period are the same at year-end,
an average increase in the market interest rate of one percentage point from the level at year-end would result in an
estimated positive effect on the Group’s financial items of around SEK 136 M (135) for the coming 12-month period.
The average fixed interest period for all of the Group’s interest-bearing assets was 0.1 years (0.1), taking derivatives into
account. The interest rate for these was 4.37 percent (3.52) at year-end. Of the Group’s total interest-bearing financial
assets, after taking into account derivatives, 42 percent (49) carry fixed interest rates and 58 percent (51) variableinterest rates.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements

Annual and Sustainability Report 2023

Note 6. Financial instruments and financial risk management, cont.

The average fixed interest period for all interest-bearing liabilities, taking into account derivatives but excluding leaseliabilities and pension liabilities, was 0.2 years (0.2). The interest rate for interest-bearing liabilities amounted to 6.17
percent (3.56) at year-end. Taking into account derivatives, the interest rate was 6.06 percent (3.56). Of total interestbearing financial liabilities, after taking into account derivatives, 0 percent (5) carry fixed interest rates and 100 percent(95) variable interest rates.
As of December 31, 2023, there were two interest rate swap contracts outstanding amounting to a nominal SEK 1,500 M,
which were entered into in order to swap parts of the Group’s liabilities from fixed to variable interest. During the year two
swap contracts totaling SEK 550 M expired, that converted parts of the Group’s assets from variable to fixed interest.
Hedge accounting is applied for interest rate swaps with terms that match the hedged loan with respect to nominal
amounts, reference rates, date of maturity, and the payment and interest rate adjustment date. The effectivenessis evaluated when the hedging relationship is entered into and on an ongoing basis. Ineffectiveness may arise if thecreditworthiness of the contracting parties affects fair value changes to the hedge and the hedged loan differently.

Auditor’s report

As of December 31, 2023, Skanska has no interest rate swap contracts outstanding for which hedge accounting isapplied. The fair value of these hedges totaled SEK 34 M (-1) on December 31, 2023. For these interest rate swaps,changes in fair value are recognized through profit or loss.

Auditor’s review report of the sustainability report

There was also an interest rate swap contract arranged in a partly owned joint venture for which hedge accounting is applied.

Quarterly information

Foreign exchange rate risk
Foreign exchange rate risk is defined as the risk of a negative impact on the consolidated income statement andstatement of financial position due to fluctuations in exchange rates. This risk can be divided into transaction exposure,i.e., net operating and financial (interest/principal payment) flows, and translation exposure related to net investments inforeign subsidiaries.

Notes

Share data
Annual General Meeting
Investors’ calendar and addresses

Transaction exposure
Transaction exposure arises in a local unit when the unit’s inflows and outflows of foreign currencies are not matched.
Although the Group has a large international presence, its operations are mainly of a local nature in terms of foreignexchange rate risk, because project revenue and costs are mainly denominated in the same currency. If this is not
the case, the objective is for each respective business unit to hedge its exposure in contracted cash flows against its
functional currency in order to minimize the effect on earnings caused by shifts in foreign exchange rates. The main tool
for this purpose is currency forwards.
The foreign exchange rate risk for the Group may amount to a total of SEK 50 M, with risk calculated as the effect on earnings
of a five percentage point shift in exchange rates. As of December 31, 2023, exchange rate risk accounted for SEK 8 M (21) oftransaction exposure before tax, which would have an impact of SEK 6 M (17) after tax on other comprehensive income.
Skanska hedges foreign currency flows by matching critical terms such as nominal amount, currency and maturity date. A
qualitative assessment of the relationship’s effectiveness is made in this way. The effectiveness of a hedge is evaluated when
the hedging relationship is entered into and on an ongoing basis. A currency hedge may become ineffective if the timing of thetransaction differs from what was initially estimated and if the credit risk associated with the derivative counterparty changes.
Skanska mainly uses hedge accounting to hedge expenses in currencies other than EUR in its European property
development operations and in the Swedish Construction business stream. The fair value of these hedges totaled
SEK 9 M (69) on December 31, 2023. The hedges fulfill effectiveness requirements, which means that unrealized gains
or losses are recognized in other comprehensive income. As of December 31, 2023, the fair value of currency hedges forwhich hedge accounting is not applied totaled SEK 2 M (2), including the fair value of embedded derivatives. Changes infair value for these are recognized through profit or loss.
Information on the changes recognized in the consolidated income statement and in other comprehensive income
during the period can be found later in this Note in the table Impact of financial instruments on the consolidated income
statement, other comprehensive income and equity.

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137

Contracted net flows – as well as hedges for these – in currencies that are foreign to the respective Group company
break down into currencies and maturities as shown in the following table.

Dec 31, 2023
SEK M1The Group’s contracted net
foreign currency flows
2024

2025

PLN

-873

-517

EUR

-433

-73

HUF

-71

-1

DKK

3

-14

GBP

-16

RON

13

CZK

31

USD

42

Other currencies-1

Total equivalent value-1,305

Hedging of foreign currency flows

2026
and later-13

2026
and later

2024

2025

664

517

433

73

13

14

7

604

20

60
-7
16
4

-11

-38
-42
1

-616

-20

1,099

1 Flows in PLN, CZK, HUF and RON are mainly related to Property Development project expenses. Flows in EUR are mainly attributable toConstruction operations in Sweden and Norway.

Dec 31, 2022

The Group’s contracted net
foreign currency flows

SEK M12023

PLN-1,230

-5

EUR

-853

-70

CZK

-303

HUF

-25

NOK

-14

USD

15

-1

-14

Other currencies

2

-1

21

-2,408-95

Total equivalent value2024

Hedging of foreign currency flows
2025
and later

2023

2024

1,039

5

784

19

-14

303

3

-2

15

1

-79

2025
and later

15

-79

2,164

1
30

0

1 Flows in PLN, CZK, HUF and RON are mainly related to Property Development project expenses. Flows in EUR are mainly attributable toConstruction operations in Sweden and Norway.

Translation exposure
Skanska’s policy stipulates that net investments in Commercial Property Development are to be currency-hedged if
the intention is to sell these assets over time. These hedges consist of currency forwards and/or foreign currency loans.
The positive fair value of the currency forwards amounted to SEK 2 M (1) and their negative fair value to SEK 0 M (0).
In 2023 and 2022, no foreign currency loans were used for hedging.
Net investments in other foreign subsidiaries are not normally hedged, unless the Board of Directors of Skanska AB
decides otherwise. At year-end 2023, 0 percent (0) of net investments in foreign currency was currency hedged. A change
in the exchange rate where the Swedish krona falls/rises 10 percent against other currencies would have an effect of
SEK +/-2.7 billion (2.8) on other comprehensive income after tax and taking hedges into account.

Contents

Annual and Sustainability Report 2023

138

Group overview

Note 6. Financial instruments and financial risk management, cont.

Operations

Hedging of net investments outside Sweden

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Dec 31, 2023
Currency

Net
investments

Hedges1

Dec 31, 2022

Hedgedportion, %Net
investments2

Net
investments, %2Net
investments

Hedges1

Hedgedportion, %Net
investments2

Net
investments, %2

CZK

3,225

3,225

6

3,278

3,278

6

DKK

660

660

1

958

958

2

3,577

6

4,521

-20

0

4,501

8

-59

0

1,714

-90

5

1,624

3
10

EUR

3,577

GBP

33

-92

280

NOK

6,036

6,036

11

5,685

5,685

Financial analysis

PLN

709

709

1

438

438

1

Financial statements

USD

13,677

13,67724

11,94911,94922

Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Other foreign-1,035

Total foreign currencies

26,881-92

0-1 035-2-47

26,78948

28,497

-109

0

-47

0

28,38852

SEK and eliminations

29,41352

26,72348

Total

56,202

100

55,111100

1 Hedged amount before subtracting tax portion.
2 After subtracting hedged portion.

Annual General Meeting
Investors’ calendar and addresses

Hedge accounting is applied in cases where hedging of net investments takes place outside Sweden. The hedges fulfill
effectiveness requirements, which means that gains or losses on the hedges are recognized in other comprehensive
income until the hedged transaction takes place, at which point the accumulated change in value is transferred to profit
or loss.
The effectiveness of the hedge is evaluated on an ongoing basis to ensure that the relationship meets the criteria.
Ineffectiveness may arise in connection with a change in net investments and if the credit risk associated with thederivative counterparty changes.
Information on the changes recognized in the consolidated income statement and in other comprehensive income
during the period can be found later in this Note in the table Impact of financial instruments on the consolidated income
statement, other comprehensive income and equity.
See also Note 34.
Significance of financial instruments for the Group’s financial position and income
Financial instruments in the statement of financial position
The following table shows the carrying amount and fair value of financial instruments by category, as well as areconciliation with total assets and liabilities in the statement of financial position.
See also Note 21, Note 24, Note 27 and Note 30.
Fair value relating to hedged transaction exposure is reported under Contract assets/liabilities or under Trade and otherreceivables/liabilities.

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Fair value
There are three different levels for establishing fair value. The first level uses the official price quotation in an active
market. The second level, which is used when a price quotation in an active market does not exist, calculates fair value by
remeasuring at observable exchange rates and discounting future cash flows based on observable market interest rates
for each respective maturity and currency. The third level uses substantial input data not observable in the market.
The fair value items in the following table have been measured pursuant to the three levels stated above. Shares andparticipations and a portion of contingent consideration liabilities are measured at fair value according to level three.
The assets relating to bonds have been measured according to level one. All other amounts have been measured
according to level two. When calculating fair value in the loan portfolio, Skanska takes into account current market
interest rates which include the credit risk premium that Skanska is estimated to pay for its borrowing.
The fair value of financial instruments with option elements is calculated using the Black-Scholes model. As
of December 31, 2023, Skanska had no instruments with option elements.
For all financial instruments that are recognized at amortized cost, the fair value is deemed to be largely in line with thecarrying amount.

Contents

Group overview

Annual and Sustainability Report 2023

139

Note 6. Financial instruments and financial risk management, cont.

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

AssetsDec 31, 2023

Hierarchy level

Measured at fairvalue through profit
or loss

1, 2

321

At amortized costTotal
carrying amount

Total
fair value

Financial instruments
Interest-bearing assets and derivatives
Financial assets1
Cash and cash equivalents

–
321

0

Trade receivables2

9,013

9,334

9,311

17,912

17,912

17,912

26,92527,24627,223

14,392

14,392

14,513

38

38

173

173

173

Trade and other receivables including shares and participations
Shares and participations33

Trade and other receivables2, 4–

Auditor’s report
Auditor’s review report of the sustainability report

Measured at fairvalue through othercomprehensive
income

38
0

38

173

211

211

321

38

41,49041,84941,947

Hierarchy level

Measured at fairvalue through profit
or loss

Measured at fairvalue through othercomprehensive
incomeAt amortized costTotal
carrying amount

Total
fair value

1, 2

100

15,482

15,582

15,606

10,014

10,014

10,01425,49625,59625,62015,172

15,172

15,304

38

38

452

452

452

Total financial instruments

Quarterly information
Share data

AssetsAnnual General Meeting
Investors’ calendar and addresses

Dec 31, 2022
Financial instruments
Interest-bearing assets and derivatives
Financial assets1
Cash and cash equivalents

–
100

0

Trade receivables2
Trade and other receivables including shares and participations
Shares and participations33

Trade and other receivables2, 4–

Total financial instruments

38
0

38

452

490

490

100

38

41,12041,25841,414

1 The carrying amount of financial assets excluding shares and participations, totaling SEK 9,334 M (15,582), is presented in Note 21.
2See Note 24.
3Shares and participations are reported in the consolidated statement of financial position among financial assets. See also Note 21.
4In the consolidated statement of financial position, SEK 27,012 M (27,726) was reported as trade and other receivables. See Note 24. Of this amount, trade receivables accounted for SEK 14,392 M (15,172). These are reported as financial instruments. The remaining amountis SEK 12,620 M (12,554) and breaks down as SEK 173 M (452) for financial instruments and SEK 12,447 M (12,102) for non-financial instruments. The amount reported as financial instruments includes accrued interest income, deposits, etc. Amounts reported as non-financial
instruments include, for example, interim items other than accrued interest, VAT receivables, pension-related receivables and other personnel-related receivables.

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Group overview

Annual and Sustainability Report 2023

140

Note 6. Financial instruments and financial risk management, cont.

Operations
Liabilities

Sustainability report
Corporate governance

Reconciliation with statement of financial position

Remuneration report

Financial instruments according to the categories in IFRS 9

Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

Dec 31, 2023

Dec 31, 2022

41,84941,258Investment Properties

5,141

3,758

Property, plant and equipment and intangible assets

12,302

12,451

Property, plant and equipment, right-of-use assets

3,082

3,256

Investments in joint ventures and associated companies

2,072

2,901

Net assets in funded pension plans

3,118

2,400

Tax assets

3,764

2,243

58,66058,474

Other assets

Current-asset properties

Auditor’s review report of the sustainability report

Current-asset properties, right-of-use assets

3,613

3,676

Quarterly information

Inventories

1,275

1,300

Share data

Receivables from customers for contract work

7,865

7,772

Trade and other receivables1

12,447

12,102

Total assets

155,189

151,593

Investors’ calendar and addresses

Measured atamortized
cost

Total
carrying
amount

Total
fair
value

Financial instruments

AssetsAuditor’s report

Annual General Meeting

Dec 31, 2023

Hierarchy
level

Measured
at fair value
through profit
or loss

1 In the consolidated statement of financial position, SEK 27,012 M (27,726) was reported as trade and other receivables. See Note 24.
Of this amount, trade receivables accounted for SEK 14,392 M (15,172). These are reported as financial instruments. The remaining amountis SEK 12,620 M (12,554) and breaks down as SEK 173 M (452) for financial instruments and SEK 12,447 M (12,102) for non-financial
instruments. The amount reported as financial instruments includes accrued interest income, deposits, etc. Amounts reported as nonfinancial instruments include, for example, interim items other than accrued interest, VAT receivables, pension-related receivables andother personnel-related receivables.

Interest-bearing liabilities andderivatives
Financial liabilities1

2, 3

530

10,80011,33011,406530

10,80011,33011,406
13,105

Operating liabilities
Trade payables–

13,105

13,105Trade and other payables2

–

369

369

369

0

13,474

13,474

13,474530

24,27424,80424,880Measured
at fair value
through profit
or loss

Measured atamortized
cost

Total
carrying
amount

Total
fair
value

Total financial instruments
Liabilities
Dec 31, 2022

Hierarchy
level

Financial instruments
Interest-bearing liabilities andderivatives
Financial liabilities1

2, 3

619

7,418

8,037

8,058

619

7,418

8,037

8,058
13,998Operating liabilities
Trade payables–

13,99813,998Trade and other payables2

–

694

694

694

0

14,692

14,692

14,692619

22,11022,72922,750Total financial instruments

1 The carrying amount for financial liabilities totaling SEK 11,330 M (8,037) is reported in the statement of financial position along withfinancial liabilities of SEK 10,915 M (7,568) from Note 27 and contingent considerations of SEK 415 M (469) from Note 29. Contingent
considerations are included in financial liabilities measured at fair value at SEK 415 M (469) and in financial liabilities measured atamortized cost at SEK 0 M (0). During the year SEK 0 M (88) of contingent considerations was disbursed and SEK 31 M (39) accrued asinterest expense. An additional SEK 0 M (-67) was transferred to non-interest-bearing liabilities and a remeasurement performed thatamounted to SEK -85 M (0).
2 O ther financial operating liabilities, totaling SEK 13,474 M (14,692), are reported in the statement of financial position together with trade
payables of SEK 13,105 M (13,998) and other financial instruments of SEK 369 M (694). The total item in the statement of financial
position amounted to SEK 40,410 M (41,840). See Note 30. Accrued interest expense, checks issued but not cashed, liabilities for unpaid
properties, etc., are recognized as other financial operating liabilities. Other non-financial operating liabilities are, for example, interim
items other than accrued interest, VAT liabilities, pension-related liabilities and other personnel-related liabilities. Operating liabilities aremeasured at amortized cost.

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Contents

Group overview

Annual and Sustainability Report 2023

141

Note 6. Financial instruments and financial risk management, cont.

Operations
Impact of financial instruments on the consolidated income statement, other comprehensive income and equity

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements

Reconciliation with statement of financial position

Dec 31, 2023

Dec 31, 2022

Revenue and expenses from financial instruments recognized in profit or loss

Financial instruments

24,80422,729Other liabilities

1-1Cash flow hedges removed from equity and recognized in profit or loss

63

20

64

19

56,34755,255

Total income and expenses in operating income

Pensions

3,167

2,891

Lease liabilities

7,047

7,281

Recognized in financial items
Interest income on assets measured at fair value

144

147

Tax liabilities

2,997

2,331

Interest income on assets measured at amortized cost

436

142

133

66

EquityProvisions

10,672

9,899

Interest income on cash and bank balances

Contract liabilities

23,22024,059Dividends

Auditor’s report

Trade and other payables1

26,93527,148

Auditor’s review report of the sustainability report

Total equity and liabilities

155,189

151,593

Changes in market value of financial assets measured at fair value through profit orloss

Share data
Annual General Meeting
Investors’ calendar and addresses

1 O ther financial operating liabilities, totaling SEK 13,474 M (14,692), are reported in the statement of financial position together with trade
payables of SEK 13,105 M (13,998) and other financial instruments of SEK 369 M (694). The total item in the statement of financial position
amounted to SEK 40,410 M (41,840). See Note 30. Accrued interest expense, checks issued but not cashed, liabilities for unpaid properties,
etc., are recognized as other financial operating liabilities. Other non-financial operating liabilities are, for example, interim items otherthan accrued interest, VAT liabilities, pension-related liabilities and other personnel-related liabilities. Operating liabilities are measured
at amortized cost.

Dec 31, 2023
Disclosures concerning offsetting offinancial instruments
Gross amountFinancial assets

Dec 31, 2022
Financialliabilities Financial assets

Financialliabilities

41,84924,804

41,25822,72941,84924,804

41,25822,729Amounts offset
Recognized in balance sheet

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2022

Interest expense on financial liabilities measured at cost

Notes

Quarterly information

2023

Recognized in operating income

Equity and liabilities

31
1

2

Changes in market value of financial liabilities measured at fair value through profit
or loss

40

7

Total income in financial items

754

395

Revenue and expenses from financial instruments recognized in profit or loss

2023

2022

Interest expense on financial liabilities measured at fair value throughprofit or loss

-8

-18

Interest expense on financial liabilities measured at amortized cost

-558

-237

Changes in market value of financial assets measured at fair value throughprofit or loss
Changes in market value of financial liabilities measured at fair value throughprofit or loss

-1
-5

Impairment losses attributable to any future credit losses-4-5

Net exchange rate differences

-7

-5

-28

-12

Amounts covered by netting arrangements

-304

-304

-130

-130

Expenses for borrowing programs

Net amount after netting arrangements

41,54524,50041,12822,599Bank-related expenses and other

-55

-29

Total expenses in financial items

-660

-312

Net income and expenses from financial instruments recognized in profit or loss

94

82

 of which interest income on financial assets not measured at fair value throughprofit or loss

570

208

 of which interest expense on financial liabilities not measured at fair value throughprofit or loss

-558

-238

Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

142

Note 6. Financial instruments and financial risk management, cont.

Reconciliation with financial items

2023

2022

Total income from financial instruments in financial items

754

395

Total expense from financial instruments in financial items

-660

-312

Net interest on pensions

-11

-48

-243

-222

Remuneration report

Interest expense for lease liabilities
Capitalized interest expense

768

477

Risk and opportunity management

Total financial items

609

290

Financial information

See also Note 14.

Financial statements
Notes

Income and expenses recognized under other comprehensive income

2023

2022

Auditor’s report

Cash flow hedges recognized directly in equity

-100

266

Quarterly information

Cash flow hedges removed from equity and recognized in profit or loss
Translation differences
Resolved translation differences for companies divested

Share data

Hedging of exchange rate risk in foreign operations

Annual General Meeting

Total

Investors’ calendar and addresses of which recognized in cash flow hedge reserveof which recognized in translation reserve

No business combinations took place during the financial year or in the comparative year.

Note 8. Revenue
Revenue is recognized according to IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases. See
Note 1. For revenue in accordance with IFRS 15, see also Note 9. Revenue from contracts with customers amounted
to SEK 166,065 M (162,336) and rental income from leases amounted to SEK 1,103 M (838). As for other types ofrevenue, dividends and interest income are recognized in financial items. See Note 14.

Financial analysis

Auditor’s review report of the sustainability report

Note 7. Business combinations

63

20

-949

2,464

2

-174

-23

81

-1,007

2,657

-37

286

-970

2,371

-1,007

2,657

Collateral
The Group has provided collateral (assets pledged) in the form of financial receivables amounting to SEK 680 M (772).
See also Note 33.
These assets may be utilized by customers if Skanska does not fulfill its obligations according to the respective
construction contract. To a varying extent, the Group has obtained collateral for trade receivables in the form ofguarantees issued by banks and insurance companies and, in some cases, in the form of guarantees from the parent
companies to customers.

Revenue by business stream
Construction1

2022
156,004

Residential Development

11,565

9,521

Commercial Property Development

8,901

15,069186

40

Investment Properties
Other
CentralEliminations, see below
Total

363

449

-14,483-17,909

167,168

163,174

1 C onstruction includes SEK 869 M (1,524) in intra-Group construction for joint ventures in the PPP portfolio. Elimination does not occur since
this revenue consists of invoices issued to joint ventures, which are recognized according to the equity method of accounting.

Reported in Eliminations
2023

2022

Intra-Group construction forConstruction
Residential Development
Commercial Property Development
Intra-Group property divestments

-17

-20

-4,881-5,757-7,732-7,833-1,562-3,909

Other

-291

-389

Total

-14,483-17,909Other
For other transactions with related parties, see Note 39.

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2023
160,636

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

Note 9. Contract assets and contract liabilities
Contract assets and contract liabilities are recognized in accordance with IFRS 15 Revenue from Contracts with
Customers. See Note 1. For risks in ongoing assignments, see Note 2.

Corporate governance

Information from the income statement
Accrued revenue during the year amounted to SEK 149,790 M (137,598).

Remuneration report

Information from the statement of financial position

Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data143

Dec 31, 2023

Dec 31, 2022

Contract assets

7,865

7,772

Contract liabilities

23,22024,059Contract assets
January 1
Accrued revenue during the year, not yet invoiced
Accrued revenue during the year, invoiced during the year
Invoiced revenue
Divestments
Reclassification
Exchange rate differences for the year
Carrying amount, December 31

2023
7,772
6,062
47,210-52,801
-1
-217
-161
7,865

2022
5,451
6,768
41,268-46,964
-36
916
369
7,772

Contract liabilities
January 1
Invoiced revenue
Accrued revenue during the year, invoiced during the year
Accrued revenue during the year, invoiced in previous years
Revenue adjustment
Divestments
Reclassification
Exchange rate differences for the year
Carrying amount, December 31

2023
24,05995,790-84,553-11,965-4443-549
23,2202022
22,664
91,072-78,059-11,503-475-105-1,041
1,507
24,059Annual General Meeting
Investors’ calendar and addresses

Future revenue for remaining performance obligations is broken down between the following years.
Expected revenue recognition for remaining performance obligations in 2023
Construction
Residential Development
Commercial Property Development
Total

2024
112,528
5,383
901
118,8132025
60,2801,594
1,423
63,2972026
35,546
194
2,97838,7182023
114,9639,876
4,724
129,5622024
57,5653,792
1,139
62,4972025
33,789194
3,008
36,9912027
14,575

≥2028
6,708

14,575

6,708

2026
17,417

≥2027
6,037

17,417

6,037

Total
229,637
7,171
5,302
242,111

Expected revenue recognition for remaining performance obligations in 2022
Construction
Residential Development
Commercial Property Development
Total

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Total
229,771
13,862
8,871
252,504

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

144

Note 10. Operating expenses by category of expense

Note 11. Selling and administrative expenses

During the year, revenue increased SEK 3,994 M to SEK 167,168 M (163,174). Total costs increased SEK 8,733 M
to SEK -161,886 M (-153,153). Operating income decreased SEK 4,739 M to SEK 5,282 M (10,021).

Selling and administrative expenses are recognized as one item. See Note 1.
Selling and administrative expenses

2023

2022

Construction-6,808-6,534

2023

2022

Revenue

167,168

163,174

Residential Development

-930

-783

Remuneration report

Personnel expenses1-31,397-30,074

Commercial Property Development

-895

-999

Depreciation and amortization-2,747-2,714

Risk and opportunity management

Investment Properties

Impairment losses2-2,645-75

Carrying amount of current-asset properties divested-13,999-14,321

Income from joint ventures and associated companies

1,195

636

Financial analysis

Income from property, plant and equipment sold

182

159

Financial statements

Change in value, investment properties

175

1,692

Notes

Other operating expenses3, 4-112,650-108,456

Total expenses-161,886-153,153

Operating income

5,282

10,021

Corporate governance

Financial information

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

-9

-2

-745

-680

-9,386-8,998Central expenses1
Total
1 Including eliminations.

1 Note 36 describes what is included in personnel expenses.
2 E xcluding impairment losses/reversals of impairment losses in joint ventures and associated companies, which are included in the item
Income from joint ventures and associated companies and amount to SEK -162 M (0).
3 O ther operating expenses includes purchased materials, machinery rentals and subcontractors.
4 An expense of SEK 145 M (61) has been recognized for research and development expenses and has been included in other operating
expenses.

Note 12. Depreciation and amortization
Depreciation and amortization are carried out in accordance with IAS 16 Property, Plant and Equipment, IFRS 16 Leases
and IAS 38 Intangible Assets. See Note 1.
Depreciation and amortization are presented below by business stream. For further information about depreciation andamortization, see Note 17, Note 19 and Note 41.

Depreciation/amortization by asset class and business stream
2023
Intangible assets

Construction

Residential
Commercial
Development Property Development-115

Investment
Properties

Central andEliminations

Total

-2

-43

-161

-5

-95

-2

-21

-22

-1,555-14-631

Property, plant and equipment
Property (buildings and land)
Plant and equipment-90-1,510Property, plant and equipment, right-of-use assets

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Property (buildings and land)-25

Offices

-540

-6

-71

Cars

-193

-2

-6

Plant and equipment

-38

Other

-31

-8

-2,543

-19

Total

-25
-202
-38
-39
-100

0

-85

-2,747

Contents

Group overview

Annual and Sustainability Report 2023

145

Note 12. Depreciation and amortization, cont.

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

2022

Construction-141

Intangible assets

Residential
Commercial
Development Property Development

Investment
Properties

Central andEliminations

Total
-211

-1

-2

-67
-5

-98

-1

-21

-15

-1,504-13-614

Property, plant and equipment
Property (buildings and land)-93

Plant and equipment-1,466

Property, plant and equipment, right-of-use assets
Property (buildings and land)

-19

-19

Offices

-536

-4

-60

Cars

-158

-1

-6

Plant and equipment

-70

Other

-23

-10

-2,506

-18

Total

-165
-70
-33

-89

0

-101

-2,714

Residential
Commercial
Development Property Development

Investment
Properties

Central andEliminations

Total

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Note 13. Impairment losses/reversals of impairment losses
Impairment losses/reversals of impairment losses are recognized in accordance with IAS 36 Impairment of Assets. See
Note 1. Impairment losses/reversals of impairment losses on current-asset properties are recognized in accordance withIAS 2 Inventories.
Impairment losses/reversals of impairment losses are presented below by business stream.
For further information on impairment losses/reversals of impairment losses, see Note 17, Note 18, Note 19, Note 22 andNote 41.
Impairment losses/reversals of impairment losses by asset class and business stream
2023

Construction

Recognized in operating income

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Intangible assets
Goodwill
Other intangible assets
Property, plant and equipment
Property (buildings and land)
Plant and equipment
Property, plant and equipment, right-of-use assets
Site leaseholds
Offices
Cars
Plant and equipment
Investments in joint ventures and associated companies
Current-asset properties
Commercial Property Development
Residential Development
Current-asset properties, right-of-use assets
Commercial Property Development
Residential Development
Total

-158

-158
0

-11
-5

-48
-71

-1

-114

-1
0
0
-162

-48
-1,647141-1,506-845

22-2,807-845-17-1,117-1,695-59-76

0

Contents

Annual and Sustainability Report 2023

Group overview

Note 13. Impairment losses/reversals of impairment losses, cont.

Operations

Impairment losses/reversals of impairment losses by asset class and business stream

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements

2022

146

Construction

Residential
Commercial
Development Property Development

Investment
Properties

Central andEliminations

Total

Recognized in operating income
Intangible assets
Goodwill-1-1Other intangible assets

-11

-11

Property, plant and equipment
Property (buildings and land)-7-7

Plant and equipment-4-4Property, plant and equipment, right-of-use assets
Site leaseholds

Notes

Offices

Auditor’s report

Cars

0

Plant and equipment

0

Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

1

1

0

Investments in joint ventures and associated companies
Current-asset properties
Commercial Property Development
Residential Development

-43
-3

-43

-7

-11

Current-asset properties, right-of-use assets
Commercial Property Development0

Residential Development
Total

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0
-25

-7

-43

0

0

-75

Contents

Group overview

Annual and Sustainability Report 2023

Note 14. Financial items

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis

147

Note 15. Borrowing costs
2023

2022

Interest income

712

355

Dividends
Change in market value

31
41

9

754

395

Financial expense
Interest expense

-566

-255

Interest expense for lease liabilities

-243

-222

Net interest on pensions

-11

-48

Financial statements

Capitalized interest expense

727

446

Notes

Capitalized interest expense from leases

41

31

Auditor’s report

Change in market value-5-5Net exchange rate differences

-7

-5

-82

-41

-145

-104

609

290

Auditor’s review report of the sustainability report
Quarterly information

Loss allowance for expected credit losses
Other financial expense

Share data

-5

Annual General Meeting
Investors’ calendar and addresses

Total

Information on how large a portion of income and expense in financial items comes from financial instruments ispresented in Note 6.
Net interest
Financial items totaled SEK 609 M (290) net, which is explained by a sharp increase in interest rates during the year.
Net interest items improved to SEK 661 M (307). Interest income increased to SEK 712 M (355).
Interest expense before capitalized interest increased to SEK -809 M (-477). During the year, Skanska capitalizedinterest expense of SEK 768 M (477) in its own ongoing projects.
Interest income was received at an average interest rate of 3.36 percent (1.18). Interest expense, excluding interest on
pension liabilities, was paid at an average interest rate of 4.55 percent (2.23) during the year. The average interest rate
for lease liabilities was 3.30 percent (3.08).
Net interest on pensions, which is the net amount of interest expense for defined-benefit pension obligations calculated
at the beginning of the year, based on the 2023 outcome, and the return on plan assets, decreased to SEK -11 M (-48).
See also Note 28.
The Group had net interest items of SEK 1 M (-1) that were recognized in operating income. See Note 1 Accounting andvaluation principles.
Change in market value
Change in market value amounted to SEK 36 M (4).
Other financial items
Other financial items amounted to SEK -89 M (-20) net and related to various charges for credit facilities and bankguarantees, exchange rate differences, dividends as well as loss allowance for expected credit losses in accordancewith IFRS 9.

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Borrowing costs related to investments that require a substantial period for completion are capitalized. See Note 1.
Borrowing costs were capitalized during the year at an interest rate of around 5.88 percent (2.41).

Financial income

Capitalized interest during the year

Total accumulated
capitalized interest
included in cost

2023

2022

2023

Current-asset properties

768

477

745

2022
589

Total

768

477

745

589

Contents

Annual and Sustainability Report 2023

Group overview

Note 16. Income taxes

Operations

Income taxes are reported in accordance with IAS 12 Income Taxes.

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

148

Tax expense

2023

2022

Current taxes-2,189-1,151

Deferred tax expense from change in temporary differences

1,208

-696

Deferred tax expense from change in losses carried forward

118

-183

2

3

-861

-2,027

Change in provision for tax risk
Total
Tax items recognized under other comprehensive income

The table below shows a breakdown by country of income taxes paid:
Income taxes paid
2023

2022

USA

978

Sweden

554
362

2023

2022

Sweden224

USA

Deferred taxes attributable to cash flow hedges

12

-19

Czechia

159

Norway214

Deferred taxes attributable to pensions

-64

-792

UK

112

Finland

140

Total

-52

-811

Finland

102

UK

97

Other

158

Other

134

Total

1,733

Total

1,501

Relationship between taxes calculated after aggregating nominal tax rates and recognized taxes
The Group’s recognized tax rate is 15 percent (20). The Group’s aggregated nominal tax rate has been estimated at
24 percent (22).

Tax assets and tax liabilities

The average nominal tax rate in Skanska’s home markets in Europe is 21 percent (20) and in the USA just over
27 percent (27), depending on the distribution of income between the different states there.
The relationship between taxes calculated after aggregating nominal tax rates of 24 percent (22) and recognized
tax of 15 percent (20) is explained in the table below.
2023

2022

Income after financial items

5,890

10,312

Tax according to aggregation of nominal tax rates, 24 percent (22)

-1,394-2,269334

196

Tax effect of:
Property divestments1
Divestment of PPP projects1

50

Other

199

-4

Recognized tax expense-861-2,027

1 In a number of the countries where Skanska operates, the sale of property projects and PPP projects via the divestment of companies is
tax free.

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Income taxes paid in the year amounted to SEK 1,733 M (1,501). Income taxes paid can vary greatly from year to year
for the countries where the Group operates. Income taxes are often calculated based on different principles to thosethat apply to the preparation of the consolidated income statement. If the final income tax is less than the amountprovisionally withdrawn in previous years, income taxes paid for the year may be substantially reduced.

Dec 31, 2023

Dec 31, 2022

Tax assets

1,246

1,248

Tax liabilities

779

388

Net tax assets (+)/tax liabilities (-)

467

860

Tax assets and tax liabilities refer to the difference between estimated income tax for the year and preliminary tax paid,
as well as income taxes for prior years that have not yet been paid.

Contents

Annual and Sustainability Report 2023

Group overview

Note 16. Income taxes, cont.

Operations

Deferred tax assets and deferred tax liabilities
Dec 31, 2023

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information149

Dec 31, 2022

Deferred tax assets according to the statement of financial position

2,518

995

Deferred tax liabilities according to the statement of financial position

2,218

1,943

Net deferred tax assets (+)/deferred tax liabilities (-)

300

-948

Dec 31, 2023

Dec 31, 2022

1,421

1,5351

Deferred tax assets and deferred tax liabilities
Deferred tax assets for lease liabilities

Financial analysis

Deferred tax assets for losses carried forward

175

65

Financial statements

Deferred tax assets for other assets

404

316

Notes

Deferred tax assets for pension provisions

587

630

Deferred tax assets for ongoing projects

734

617

2,007

1,653

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Other deferred tax assets
Total before net accounting

5,328

4,816

Net accounting of offsettable deferred tax assets/tax liabilities-2,810-3,8211

Deferred tax assets according to the statement of financial position

2,518

995

Annual General Meeting
Investors’ calendar and addresses

Dec 31, 2023

Dec 31, 2022

Deferred tax liabilities for right-of-use assets

1,395

1,5351

Deferred tax liabilities for investment properties

425

362

Deferred tax liabilities for other non-current assets

383

344

Deferred tax liabilities for ongoing projects

1,330

1,736

Deferred tax liabilities for other current assets

308

162

Other deferred tax liabilities

1,187

1,625

Total before net accounting

5,028

5,764

Net accounting of offsettable deferred tax assets/tax liabilities-2,810-3,8211

Deferred tax liabilities according to the statement of financial position

2,218

1,943

1 Restated due to the amendment of IAS 12, whereby the exemption from reporting deferred tax no longer applies.The change has no effecton the balance sheet.

Change in net receivables (+)/net debt (-) deferred tax
Net receivables (+)/net debt (-) deferred tax, January 1

2022

-948

730

Divestments

18

4

Recognized under other comprehensive income

-52

-811

1,328

-876

Deferred tax expense

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2023

Exchange rate differences-46

5

Net receivables (+)/net debt (-) deferred tax, December 31

300

-948

Deferred tax assets other than for losses carried forward are temporary differences between carrying amounts for tax
purposes and carrying amounts recognized in the statement of financial position. These differences arise, for example,
when the Group’s valuation principles deviate from those applied locally by a Group company. These deferred tax
assets are mostly expected to be realized within five years. Deferred tax assets arise, for example, when a recognizeddepreciation/amortization/impairment of assets becomes tax-deductible only in a later period, when eliminating intraGroup profits, when there are differences with respect to provisions for defined-benefit pensions between local rules and
IAS 19, when the required provisions become tax-deductible in a later period and when advance payments for ongoingprojects are taxed on a cash basis.
Deferred tax liabilities for other assets and other deferred tax liabilities are temporary differences between carrying
amounts for tax purposes and carrying amounts in the statement of financial position. These differences arise, forexample, when the Group’s valuation principles deviate from those applied locally by the Group company. For the mostpart, these deferred tax liabilities are expected to be realized within five years. For example, deferred tax liabilities arise
when depreciation/amortization for tax purposes in the current period is larger than the required economic depreciation/amortization and when accrued profits in ongoing projects are taxed only when the project is completed.

Temporary differences and losses carried forward (deficits) that are not recognized as deferred tax assets
Dec 31, 2023

Dec 31, 2022

Losses carried forward that expire within one year

661

229

Losses carried forward that expire in more than one year but within three years

372

485

Losses carried forward that expire in more than three years

3,498

2,101

Total

4,531

2,815

Skanska has losses carried forward in a number of countries. In some of these countries the likelihood that losses carriedforward will be able to be used is difficult to assess, and therefore no deferred tax asset is recognized. The table pertains
to the tax base for losses carried forward and not the tax effect.
New rules on global minimum taxation
Skanska is affected by the new rules on global minimum taxation (Pillar Two) that entered into force on January 1, 2024.
These rules mean that Skanska is considered to be low-taxed in countries where the total effective tax rate (ETR),
according to the specific calculation methodology, is lower than 15 percent. In cases where a country’s ETR is less than
15 percent, a top-up tax corresponding to the difference is payable.
Given the complexity in the regulatory framework for calculating the ETR, a simplified methodology for such calculations
is offered (Safe Harbours) during the transition period 2024–2026. Safe Harbours offer an exemption from further action
if at least one of three tests (concerning turnover and profit, effective tax and substance) is met. Preliminary calculations
show that all of Skanska’s markets except Sweden are expected to meet at least one of the three different Safe Harbour
tests. However, our Swedish operations do not meet any of these Safe Harbour tests. Therefore, Skanska needs toimplement a process for data collection, calculation and reporting in Sweden under the permanent Pillar Two rules(“GloBE”) in 2024. However, under these rules, Skanska appears to have a tax rate in Sweden that is higher than
15 percent. Accordingly, our assessment is that Skanska will not have to pay any top-up tax in any country.

Contents

Annual and Sustainability Report 2023

150

Group overview

Note 17. Property, plant and equipment

Operations

Property, plant and equipment are reported in accordance with IAS 16 Property, Plant and Equipment. See Note 1.

Sustainability report

Office buildings and other buildings used in the Group’s operations are recognized as property, plant and equipment.
Plant and equipment are recognized as a single item.

Corporate governance

Property, plant and equipment by asset class

Remuneration report
Risk and opportunity management
Financial information
Financial analysis

Dec 31, 2023

Dec 31, 2022

Property (buildings and land)

1,394

1,589

Plant and equipment

6,510

5,920

Property, plant and equipment under construction
Total

131

294

8,035

7,803

Financial statements
Notes

Depreciation of property, plant and equipment by asset class and function
Cost of sales

Auditor’s report
Auditor’s review report of the sustainability report

Property (buildings and land)

Selling and administration

Total

2023

2022

2023

2022

2023

-56

-63

-39

-35

-95

2022
-98

Quarterly information

Plant and equipment-1,438-1,416-117-87-1,555-1,504

Share data

Total

-1,493-1,480-157-122-1,650-1,602

Annual General Meeting
Investors’ calendar and addresses

Impairment losses/reversals of impairment losses on property, plant and equipment
During the year, impairment losses/reversals of impairment losses in the net amount of SEK -135 M (-11) were recognized.
Impairment losses/reversals of impairment losses were recognized in Poland, Sweden and the USA during the year.
In the comparative year, impairment losses/reversals of impairment losses were recognized in Poland. Impairment
losses/reversals of impairment losses were recognized as cost of sales in the amount of SEK -135 M (-11) and selling andadministrative expenses in the amount of SEK 0 M (0).
Impairment losses/reversals of impairment losses
Property (buildings and land)
Impairment losses

Plant and equipment

Total

2023

2022

2023

2022

2023

2022

-59

-7

-76

-4

-135

-11

-59

-7

-76

-4

-135

-11

2022

2023

Reversals of impairment losses
Total
Amount of impairment losses/reversals of impairment losses based on
Property (buildings and land)
2023

Plant and equipment
2022

Fair value less selling expenses/costs of disposals

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2023

Total

-2

2022

-2

Value in use

-59

-7

-74

-4

-133

-11

Total

-59

-7

-76

-4

-135

-11

Contents

Group overview
Operations

Annual and Sustainability Report 2023

151

Note 17. Property, plant and equipment, cont.

Information about cost, accumulated depreciation and accumulated impairment losses

Sustainability report

Property (buildings and land)

Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report

2023

2022

2023

2022

2023

January 1

3,490

3,158

25,26423,539294

132

Investments

55

124

2,504

1,952

99

162

Divestments and disposals

-86

-88

-883

-1,573

-3

-2

6

184

-5

-258

Reclassifications
Exchange rate differences for the year

-63

290

-647

1,352

3,396

3,490

26,42325,264-1,692-1,471-19,239-17,800

14

22

626

1,100

-9

-13

9

-98

-1,555-1,5042
131

294

Accumulated depreciation according to plan
January 1
Divestments and disposals
Reclassifications

Quarterly information

Depreciation for the year

Share data

Exchange rate differences for the year

Investors’ calendar and addresses

2022

Accumulated cost

Auditor’s review report of the sustainability report

Annual General Meeting

Property, plant and equipment underconstruction

Plant and equipment

-95
36

-136

447

-1,044-1,737-1,692-19,734-19,239

-209

-185

-105

-94

-76

-4

Accumulated impairment losses
January 1
Divestments and disposals

4

Reclassifications
Impairment losses for the year

-2
-59

-7

1

Reversals of impairment losses
Exchange rate differences for the year

2

-19

-266

-209

-180

-105

Carrying amount, December 31

1,394

1,589

6,510

5,920

131

294

Carrying amount, January 1

1,589

1,503

5,920

5,644

294

132

Other
Information about capitalized interest is presented in Note 15. For information on finance leases, see Note 41. Skanska
has undertakings to acquire property, plant and equipment in the amount of SEK 1 M (0).
Skanska did not receive any significant compensation from third parties for property, plant and equipment that was
damaged or lost during the year or in the comparative year.

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Annual and Sustainability Report 2023

152

Group overview

Note 18. Goodwill

Operations

Goodwill is recognized in accordance with IFRS 3 Business Combinations. See Note 1. For key judgments, see Note 2.

Sustainability report

Goodwill amounted to SEK 3,919 M (4,160). During the year, goodwill decreased SEK 241 M net mainly due to impairment
losses and exchange rate differences.

Recoverable amount, 100

Corporate governance

The goodwill recoverable amount is based on value in use. The amounts of goodwill together with other non-current
assets, current-asset properties and net working capital are tested annually and also when there is an indication of
impairment.
Expected cash flows are based on forecasts for the performance of the Residential Development and Commercial
Property Development business streams and the development of construction investments in each market in
the countries where the Group has operations. The forecasts are based on the units’ two-year forecasts. Future
macroeconomic development and changes in interest rates are also important variables. The forecast period is
10 years, which is the period used in models for measurement of other types of assets, for example commercial projects.
When 10-year models are used it is easier to make assumptions concerning cycles and there is less reliance on residual
values. The growth rate used to extrapolate cash flow forecasts beyond the period covered by the 10-year forecasts isthe normal growth rate for the industry in each respective country.

Interest rate, percent (WACC), before taxes

12

Interest rate, percent (WACC), after taxes

10

Expected growth, %2Interest rate, percent (WACC), previous year
(before taxes)

13

Interest rate, percent (WACC), previous year
(after taxes)
Expected growth, %, previous year

Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Each business unit uses a unique discount factor based on weighted average cost of capital (WACC). Parametersthat affect the WACC are interest rates for borrowing, market risks and the ratio between borrowed funds and equity.
The WACC is stated both before and after taxes.
The following table shows how the carrying amount relates to the recoverable amount for the respective business
units for Skanska’s largest goodwill items. The recoverable amount is expressed as 100. The tests are based on anassessment of anticipated development over the next 10-year period.

Annual General Meeting
Investors’ calendar and addresses

Goodwill impairment losses
The Group reported goodwill impairment losses during the year of SEK -158 M (-1). The weak housing market has resulted
in a decision to recognize an impairment loss for Skanska Norway’s Residential Development.

Goodwill amounts by cash-generating units

Dec 31, 2023

Dec 31, 2022

Of which
impairment
lossesOf whichexchange rate
differences

Construction
Sweden17

17

Norway933

998

Finland

486

485

-63

-63
-13

Central Europe

584

598

-13

UK

1,302

1,274

28

28

USA Building

406

421

-15

-15

USA Civil

36

37

-1

-1

Norway

144

319

-175

-158

-17

Finland

11

11

3,919

4,160

-241

-158

-83

Residential Development

Total

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FinlandCentral Europe

UK

100

100

100

100

Carrying amount

28

n/a

n/a

n/a

Carrying amount, previous year1

29

n/a

n/a

n/a

11

15

15

10

13

11

2

3

2

11

14

12

10

9

11

9

2

2

3

2

Carrying amount in relation to recoverable
amount, 100 in case of increase in interest rateby
+1 percentage point+5 percentage points
Carrying amount, previous year, in relation torecoverable amount, 100 in case of increase ininterest rate by+1 percentage point

Impairment losses are based on a calculation of value in use and recognized as selling and administrative expenses
in profit or loss.

Change during
the year

Norway+5 percentage points

32

n/a

n/a

n/a

50

n/a

n/a

n/a

34

n/a

n/a

n/a

59

n/a

n/a

n/a

1 Value > 100 indicates that the recoverable amount is less than the carrying amount and an impairment loss needs to be recognized.
For Skanska’s operations in Finland and the UK, the carrying amount was negative due to negative working capital exceeding the valueof non-current assets.

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Annual and Sustainability Report 2023

153

Group overview

Note 19. Other intangible assets

Operations

Other intangible non-current assets are recognized in accordance with IAS 38. See Note 1.

Sustainability report

Intangible assets and useful life applied

Corporate governance
Remuneration report

Intangible assets, externally generated

Information about cost, accumulated amortization and accumulated impairment losses

Dec 31, 2023

Dec 31, 2022

136

187

3–10 years

Accumulated cost

3–7 years

Intangible assets, internally generated

213

301

Risk and opportunity management

Total

348

488

Financial information

Internally generated intangible assets consist of business systems. Externally acquired intangible assets include
acquired software and licenses in the USA, Sweden, Finland and the UK.

Financial analysis

Intangible assets,externally acquired

Useful life
applied

2023

2022

2023

2022

January 1

1,686

1,627

1,005

998

Investments

17

18

3

5

-1

-103

-9

145

2

3

1,694

1,686

1,010

1,005

-1,312-1,173

-705

-587

-93

-117

Acquisitions of companies
Divestments and disposals
Reclassifications

Financial statements

Business systems are amortized over a maximum of seven years. Customer contracts are amortized as projects progress
to completion and patents are amortized over 10 years.

Notes

All intangible assets are amortized as they have a limited useful life.

Auditor’s report

Amortization by function

2023

2022

Auditor’s review report of the sustainability report

Cost of sales

-67

-81

January 1

Quarterly information

Selling and administration

-95

-130

Divestments and disposals

Total

-161

-211

Amortization for the year

Share data
Annual General Meeting
Investors’ calendar and addresses

Impairment losses/reversals of impairment losses on other intangible assets
Impairment losses/reversals of impairment losses in the net amount of SEK 0 M (-11) were recognized for the year.

Intangible assets,internally generated-1

Exchange rate differences for the year

Accumulated amortization
87-68

Reclassifications

-95
-17

Exchange rate differences for the year

16

-115

-1,365-1,312

-798

-705

-1

-188

-188

0

0

Accumulated impairment losses
January 1
Divestments and disposals
Impairment losses for the year

-11

Reversals of impairment losses
Reclassifications

18

Exchange rate differences for the year

-6

-6

-194

-188

0

0

Carrying amount, December 31

136

187

213

301

Carrying amount, January 1

187

265

301

411

Other
Information about capitalized interest is presented in Note 15.

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Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

154

Note 20A. Subsidiaries

Note 20B. Investments in joint ventures and associated companies

The parent company Skanska AB holds 100 percent of the shares in Skanska Financial Services AB and Skanska Kraft
AB. Skanska Kraft AB in turn directly or indirectly owns the subsidiaries in the countries in which Skanska has operations.
All subsidiaries are independent limited companies, partnerships or equivalent legal forms in each country. Regarding
the companies’ registered offices, see the parent company notes, Note 52.

For all joint arrangements an assessment is made of their legal form, agreements between the owning parties and othercircumstances. In accordance with IFRS 11 Joint Arrangements, the joint arrangement is reported as a joint venture if theowning parties only have rights to the net assets. See also Note 1.

Remuneration report

Skanska’s Corporate Structure

Risk and opportunity management

Investments in joint ventures and associated companies are reported according to the equity method of accounting.
Income from joint ventures and associated companies after tax is reported on a separate line in operating income. This
income consists of the Group’s share of the income in joint ventures and associated companies after tax, adjusted forany impairment losses on consolidated goodwill and intra-Group profits.
Income from joint ventures and associated companies is presented in the following table.

Skanska AB

Financial information
Financial analysis

Share of income in joint ventures according to the equity method

Financial statements

Share of income in associated companies according to the equity method

Notes

Skanska Kraft AB

Skanska Financial Services AB

Auditor’s report

2023

2022

526

454

-2

Divestments of joint ventures

833

Impairment losses in joint ventures

-162

Total

1,195

182
636

Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting

Construction

Residential
Development

Commercial Property
Development

Investment
Properties

The Group has holdings in joint ventures with a carrying amount of SEK 2,034 M (2,863).
The PPP portfolio includes carrying amounts in joint ventures totaling SEK 1,190 M (2,328).

Investors’ calendar and addresses
SwedenSwedenSwedenNorwayNorwayNorwayFinlandFinlandFinland

PolandPolandDenmark

Czechia andSlovakia

Czechia

PolandUK

UK

Czechia

USA Building

Hungary

USA Civil

Romania
USA

According to Note 26, there are only minor non-controlling interests.

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CentralJoint ventures
Joint ventures are recognized in compliance with IAS 28 Investments in Associates and Joint Ventures, see Note 1.

SwedenIncome from joint ventures
The share of income in joint ventures, after tax, is recognized in operating income, because these holdings are anelement of Skanska’s business.
The share of income in joint ventures according to the equity method comes mainly from operations in the PPP portfolio.
PPP portfolio
Public-private partnerships (PPP) are a type of public procurement where a project company owned by private
enterprises has overall responsibility for developing, financing, building, operating and maintaining public facilities.
The type of payment for the investments may either be based on market risk, for example road tolls, or based on
availability; see also IFRIC 12, Note 1. The concession periods for current investments vary between 30 and 40 years
and the ownership interests in the current portfolio are between 32 and 50 percent. At this time the PPP portfolio has
investments in Sweden and the USA.

Contents

Group overview

Annual and Sustainability Report 2023

155

Note 20B. Investments in joint ventures and associated companies, cont.

Operations
Sustainability report

The carrying amount according to the statement of financial position and the change that occurred can be seen in the following table.
2023

Corporate governance
Joint ventures

Associatedcompanies

Total

Joint ventures

Associatedcompanies

Total

2,863

38

2,901

2,145

40

2,185

New acquisitions

313

6

Divestments

-788

-2

-165

Reclassifications

158

Exchange rate differences for the year

-74

1

105

Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

2022

January 1

-3

317

703

-788

-163

158

-55

-71

104
178

Change in fair value of derivatives

-30

-30

Impairment losses for the year

-162

-162

704
-55
178

The year’s change in share of income in joint ventures and associated companies after subtracting
dividends received

-246

-3

-249

-49

-1

-50

Carrying amount, December 31

2,034

39

2,072

2,863

38

2,901

Percentage ofvoting power

Share data
Annual General Meeting
Investors’ calendar and addresses

Consolidated carrying amount1

Specification of major holdings of shares and participations in joint venturesof which cash flow hedges

Company

Business stream

Country

Percentage ofshare capital

Dec 31, 2023

Dec 31, 2022

AB Sydsten

Construction

Sweden

50

50

143

159

UNIASFALT s.r.o.

Construction

Slovakia

50

50

49

48

Botkyrka Södra Porten Holding AB

Construction

Sweden

50

50

99

99

Järvastaden AB

Residential Development

Sweden50

50

58

Kista Park AB

Residential Development

Sweden50

50

Kista Valley AB

Residential Development

Sweden50

50

Nansenløkka Utvikling K3-K6 AS

Residential Development

Norway

50

50

266

17

Økern Park Holding AS

Residential Development

Norway

50

50

89

32

Joint ventures in the PPP portfolio2

1,190

2,328

Other joint ventures

140

126

2,034

2,863

Total joint ventures, GroupDec 31, 2023

Dec 31, 2022

-84

-55

-84

-55

5
11
38

1 C onsolidated carrying amounts represent the Group’s share of equity including results achieved, Group adjustments and deductions for dividends distributed.
2 C arrying amounts for joint ventures in the PPP portfolio are affected by cash flow hedges. The value of these cash flow hedges amounted to SEK -84 M (-55). When joint ventures where the carrying amount is affected by cash flow hedges are sold, the income from the sale will beaffected as the effect of the cash flow hedges is rebooked against income.

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Annual and Sustainability Report 2023

156

Note 20B. Investments in joint ventures and associated companies, cont.

Operations
Sustainability report

Unrealized development gain in the PPP portfolio

Corporate governance

Present value of cash flow from projects

1.9

2.7

Present value of remaining investments

0.0

0.0

Remuneration report

SEK bnDec 31, 2023

Dec 31, 2022

Present value of projects

1.9

2.7

Risk and opportunity management

Carrying amount before cash flow hedges

-1.1

-2.2

Financial information

Unrealized development gain

0.8

0.5

Cash flow hedge

0.1

0.1

Financial analysis

Effect in unrealized equity1

0.9

0.6

Financial statements

1 Tax effects not included.

Notes
Auditor’s report
Auditor’s review report of the sustainability report

Details of Skanska’s joint ventures
Most of Skanska’s joint ventures are in the PPP portfolio, which is reported in accordance with IFRIC 12 Service
Concession Arrangements. The amounts below correspond to 100 percent of the joint venture’s income statement andstatement of financial position.

Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

PPP portfolio

Other joint ventures

2023

2022

2023

2022

2023

2022

Revenue

4,393

4,134

1,084

1,449

5,476

5,582

Depreciation and amortization-844-1,320

-20

-30

-864

-1,350

Impairment losses

-22

-22

Other operating expenses-1,995-2,684-1,025-1,305-3,020Operating income

1,554

129

16

114

1,570

243

Interest income

1,220

1,045

18

3

1,238

1,048

Interest expense-1,735

-657

-67

-8

-1,802

-664

-4

-1

-4

-1

-37

108

1,002

626

Financial items
Income after financial items1

1,040

518

-3,989

Taxes

-141

-34

-3

-30

-144

-64

Profit for the year

898

484

-40

78

858

562

Comprehensive income for the year

898

484

-40

78

858

562

1 The amount includes impairment losses in the consolidated accounts.

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Total all joint ventures

Income statement

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Group overview

Annual and Sustainability Report 2023

Note 20B. Investments in joint ventures and associated companies, cont.

Operations
Sustainability report
Corporate governance
Remuneration report

157

PPP portfolio
Statement of financial position

Other joint ventures

Total all joint ventures

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

15,07843,683

1,011

386

16,08844,068Current assets

509

1,225

2,577

1,735

3,086

2,960

Cash and bank balances

1,289

4,972

443

449

1,732

5,421

Total assets

16,87549,879

4,031

2,570

20,90652,449Non-current assets

Risk and opportunity management
Financial information

Equity attributable to equity holder1

2,379

5,416

1,842

1,085

4,222

6,501

Non-current financial liabilities

14,305

42,113798

253

15,10342,366

Financial analysis

Other non-current liabilities

410

196

410

196

Financial statements

Current financial liabilities

127

542

127

542

Notes
Auditor’s report
Auditor’s review report of the sustainability report

Other current liabilities
Total equity and liabilities
Skanska received the following dividend2

191

2,350

854

495

1,045

2,845

16,87549,879

4,031

2,570

20,90652,449

710

146

61

357

772

504

Quarterly information
Share data

Reconciliation with participations in joint ventures

Annual General Meeting

Equity attributable to the investors in joint ventures, 100%

2,379

5,416

1,842

1,085

4,222

6,501

Less equity attributable to investors other than Skanska-1,390-3,288-960-560-2,350-3,848Skanska’s portion of equity in joint ventures, adjusted for surplus value and goodwill

990

2,128

882

525

1,872

2,653

+ Losses recognized as provisions

200

200

123

10

323

210

Investors’ calendar and addresses- Impairment losses
Carrying amount of Skanska’s holdingsof which cash flow hedges
1 Equity includes subordinated loans from the owners.
2 Dividends also include interest paid on the subordinated loans.

Assets pledged
Shares in joint ventures pledged as collateral for loans and other obligations amount to SEK 1,190 M (2,328).

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-161
1,190

2,328

-84

-55

844

535

-161

0

2,034

2,863

-84

-55

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Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

158

Note 20B. Investments in joint ventures and associated companies, cont.

Note 20C. Joint operations

Other
Skanska’s joint ventures are owned by Skanska and other investors. They are financed in part by capital from the owningparties, but the majority are financed via banks or credit institutions. The assets of the respective joint ventures are used
as collateral for the liabilities. According to agreements with the banks, the ability to access bank account funds fromthese joint ventures is restricted.

Skanska executes certain projects with a joint party without a separate legal company being formed for the purpose.
These projects are then classified as joint operations in accordance with IFRS 11. Joint operations without the formationof a separate company are found mainly in the USA.

Risk and opportunity management

Skanska’s portion of the total investment obligations of partly owned joint ventures amounted to SEK 1,110 M (2,074), of
which SEK 0 M (0) comprised remaining undertakings to invest in infrastructure in the form of equity holdings and loans.
The remaining portion is expected to be financed mainly through bank loans or bonds issued in the respective joint
ventures and in the form of participations and loans from other co-owners.

Financial information

Contingent liabilities for joint ventures amounted to SEK 907 M (258).

Remuneration report

Financial analysis
Financial statements
Notes
Auditor’s report

Associated companies
Associated companies are recognized in accordance with IAS 28 Investments in Associates and Joint Ventures.
See Note 1. The carrying amount of associated companies is SEK 39 M (38).
Information on the Group’s share of revenue, income, assets, liabilities and equity in associated companies

Share data
Annual General Meeting

Percentage ofshare capital

Name of joint operation

Operations

Country

Skanska Costain Strabag Joint Venture

Railway

UK

34

Skanska Balfour BeattyCampus area

USA

50

Skanska-Traylor-PNB JVHighway/bridge

USA

80

Hoffman Skanska

Airport

USA

50

Skanska-SG

Hotel

USA

88

Skanska-Traylor-Shea Joint VentureTramline

USA

50

2023

2022

Skanska/Walsh

Airport

USA

70

0

0

Skanska RJ Industries WWTP

Water treatment plant

USA

80

Profit-20Skanska Halmar JFK JVRoad network/transport center at airport

USA

70

Assets39

38

Equity1

39

38

39

38

Investors’ calendar and addresses
Liabilities
Equity and liabilities

1 Reconciliation between equity and carrying amount of holdings, in accordance with the equity method of accounting.

Dec 31, 2023

Dec 31, 2022

Equity in associated companies

39

38

Carrying amount

39

38

Other
The associated companies have no liabilities or contingent liabilities which the Group may become responsible forpaying. Nor are there any obligations for future investments.

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Specification of significant holdings in joint operations, according to sales in current year

Revenue

Auditor’s review report of the sustainability report
Quarterly information

Skanska also executes certain projects with a joint party where a separate company is formed for the purpose.
These projects are classified as joint operations provided that the other criteria in IFRS 11 are fulfilled.

There are around 100 other small joint operations in the above countries, as well as in Sweden and Czechia.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

Note 21. Financial assets
Financial investments, financial receivables and shareholdings where ownership is less than 20 percent and the Group
has no significant influence are recognized as non-current financial assets.
Financial investments and financial receivables are recognized as current financial assets. See also Note 6.
Non-current financial assets

Dec 31, 2023

Derivatives

Derivatives
Other interest-bearing receivables

6
6

Shares and participations1

38

Other interest-bearing receivables

103

Quarterly information

Investors’ calendar and addresses

314

99

314

99

5,106

5,425
8,809

Receivables from joint ventures

79

38

Other interest-bearing receivables

2,078
7,184

14,313

141

38

Total

7,498

14,413

Dec 31, 2023

Dec 31, 2022

 of which interest-bearing current financial assets

7,184

14,313 of which non-interest-bearing current financial assets

314

99

Total carrying amount, financial assets

12,49018,020 of which financial assets excluding shares and pensions

9,334

15,582

1 Shareholdings were affected by impairment losses of SEK 0 M (0) during the year.

Non-current financial assets
Non-current financial assets at amortized cost
Receivables from joint ventures

48

26

Restricted cash and cash equivalents

664

523

Other interest-bearing receivables

1,015

620

1,727

1,169

Net assets in funded pension plans

3,118

2,400

Total

4,992

3,607

 of which interest-bearing non-current financial assets

4,954

3,569

38

38

Other

 of which non-interest-bearing non-current financial assets

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Dec 31, 2022

0
Restricted cash and cash equivalents

Auditor’s report

Annual General Meeting

Dec 31, 2023

Current financial assets at amortized cost

Notes

Share data

Current financial assets
Current financial assets measured atfair value through profit or loss

Non-current financial assets measured at fair value through other comprehensive
incomeAuditor’s review report of the sustainability report

Dec 31, 2022

Non-current financial assets measured at fair value through profit or loss

Financial analysis
Financial statements

159

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Annual and Sustainability Report 2023

160

Group overview

Note 22. Current-asset properties/Project Development

Operations

Current-asset properties are recognized in compliance with IAS 2 Inventories. See Note 1.

Sustainability report

The allocation of items in the statement of financial position by business stream is presented below.

Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Business stream

Dec 31, 2023

Dec 31, 2022

Commercial Property Development

37,99135,814

Residential Development

20,67022,660Total

58,66058,474

Impairment losses/reversals of impairment losses
Current-asset properties are valued in accordance with IAS 2 Inventories, and are thus carried at the lower of cost or net realizable value. Adjustment to net realizable value via an impairment loss is recognized, as are reversals of previous
impairment losses, in profit or loss under Cost of sales. Net realizable value is affected by the type and location of the property, and by the yield requirement in the market.

Financial analysis

Impairment losses

Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Reversals of impairment losses

2023

2022

Commercial Property Development-1,506-66

Residential Development

-845

-11

-2,351

-76

Total

2023

Total
2022

2023

2022

23

-1,506

-43

-845

-11

23

-2,351-53

For a further description of the respective business streams, see Note 4. Current-asset properties are divided into completed properties, properties under construction and development properties.
Carrying amounts

Annual General Meeting

Properties under construction

Development properties

Current-asset properties

Dec 31, 2023

Completed properties
Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Dec 31, 2022

Dec 31, 2023

Commercial Property Development

9,104

5,039

16,45918,285

12,42812,49037,99135,814

Residential Development

2,217

549

8,467

11,986

9,986

10,126

20,67022,660Total

11,321

5,588

24,92630,27022,414

22,616

58,66058,474

Investors’ calendar and addresses

Commercial Property Development
Carrying amountJanuary 1
Investments
Carrying amount of properties divested
Impairment losses
Reversals of impairment losses
The year’s provision for intra-Group profits in contracting work
Reclassifications
Exchange rate differences for the year
December 31

Residential Development

Dec 31, 2022

Total current-asset properties

2023

2022

2023

2022

2023

2022

35,814
10,636-4,847-1,506

31,201
12,264-7,296-66
23-316-2,2582,262
35,814

22,6608,655-9,152-845

18,544
10,376-7,026-11

58,474
19,291-13,999-2,351

-145
-404
-99
20,670

-152
156
773
22,660-474-1,458-823
58,66049,745
22,639-14,321-76
23-468-2,102
3,035
58,474-329-1,053-724
37,991

The carrying amount of current-asset properties is allocated between properties carried at cost and properties carried at net realizable value as shown in the following table.

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Commercial Property Development
Residential Development
Total

Cost
Dec 31, 2023
31,38919,55850,947

Dec 31, 2022
35,76022,57458,334

Net realizable value
Dec 31, 2023
Dec 31, 2022
6,602
54
1,112
86
7,714
140

Total
Dec 31, 2023
37,991
20,67058,660Dec 31, 2022
35,814
22,66058,474

Contents

Annual and Sustainability Report 2023

Group overview

Note 22. Current-asset properties/Project Development, cont.

Operations

Difference between fair value and carrying amount for current-asset properties

Sustainability report

161

Note 24. Trade and other receivables
Surplus value
Dec 31, 2023

Surplus value
Dec 31, 2022

Completed projects

1.9

1.2

Development properties

0.6

1.1

Risk and opportunity management

Ongoing projects

3.1

8.2

Financial information

5.7

10.5

Residential Development

Corporate governance
Remuneration report

SEK bnCommercial Property Development

1

Financial analysis

Undeveloped land and development properties

3.4

4.3

Financial statements

Total

9.1

14.8

Notes

1 Estimated market value. Internal appraisal, with valuation on respective completion dates.

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Dec 31, 2023
Trade receivables, joint ventures

Dec 31, 2022

1

1

Trade receivables, others

14,391

15,171Other operating receivables1)

8,242

7,910

Prepaid expenses and accrued income

4,378

4,645

Total

27,012

27,726

14,392

15,172 Of which financial instruments reported in Note 6.
   Trade receivables

Assets pledged
Current-asset properties pledged as collateral for loans and other obligations amount to SEK 0 M (0). See Note 33.

  Trade and other receivables including accrued interest income

Other
Information about capitalized interest is presented in Note 15.

Of which non-financial instruments

173

452

14,565

15,624

12,447

12,102

1 Of which a receivable of SEK 596 M arising from the sale of our share of LaGuardia.

Investment commitments relating to undeveloped land and development properties not yet in Skanska’s ownershipamount to SEK 7.0 billion (6.5).

Note 25. Cash and cash equivalents
Note 23. Inventories

Cash and cash equivalents consists of cash and available funds at banks and equivalent financial institutions, as well as
short-term investments. Cash and cash equivalents totaled SEK 17,912 M (10,014), of which short-term investments
amounted to SEK 8,478 M (2,807) on the closing day.

Inventories are reported in accordance with IAS 2 Inventories. See Note 1.
Dec 31, 2023

Dec 31, 2022

Raw materials and supplies

414

484

Products being manufactured

97

65

Finished products and merchandise

765

751

1,275

1,300

Total

There are no significant differences between the carrying amount for inventories and their fair value.
No portion of inventories was adjusted due to an increase in net realizable value.
No merchandise was used as collateral for loans and other obligations.

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Non-interest-bearing operating receivables are reported as Trade and other receivables. Operating receivables are partof the Group’s operating cycle and are recognized as current assets.

Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

Note 26. Equity/earnings per share
Equity in the Group is allocated between equity attributable to equity holders (shareholders) and non-controllinginterests (minority interests).
Non-controlling interests account for 0.3 percent of total equity.
Equity changed during the year as follows:

Remuneration report
Risk and opportunity management

162

January 1 of which non-controlling interests

2023

2022

55,25545,465

144

114

Financial information
Financial analysis
Financial statements
Notes

Profit for the year attributable tonon-controlling interests

4,998

8,256

31

28

Auditor’s report
Auditor’s review report of the sustainability report

Other comprehensive income

Quarterly information

Items that will not be reclassified to profit or loss for the year

Share data
Annual General Meeting
Investors’ calendar and addresses

Remeasurement of defined-benefit pension plans1

273

3,818

Tax related to items that will not be reclassified to profit or loss for the year

-64

-792

Total

209

3,026

Items that have been or will be reclassified to profit or loss for the year
Translation differences attributable to equity holders2

5,679

Comprehensive income for the year

4,239

13,963

4,212

13,92027

43

of which attributable to equity holders of which attributable to non-controlling interests
Other changes in equity not included in comprehensive income for the year

-3,081-4,124

Dividend to non-controlling interests

-20

-13

Changes in the Group structure-5

Effects of share-based payments

470

471

Repurchase of shares

-510

-507

Total

-3,146-4,174Equity, December 31

56,34755,255146

144 of which non-controlling interests
Equity attributable to equity holders is allocated as follows:

Dec 31, 2023

Dec 31, 2022

Share capital

1,260

1,260

Paid-in capital

4,656

4,186

4,509

5,504

-947

2,290

Translation differences attributable to non-controlling interests-4

14

Reserves

Hedging of exchange rate risk in foreign operations2

-23

81

Retained earnings

45,77744,161

Effect of cash flow hedges3

-37

286

Total

56,202

55,111

Tax related to items that have been or will be reclassified to profit or loss for the year

12

-19

-999

2,653

Paid-in capital
Paid-in capital in excess of quota value from historical issues of new shares is recognized as Paid-in capital.

1 Remeasurement of defined-benefit pension plans, SEK 273 M (3,818), together with tax, SEK -64 M (-792), totaling SEK 209 M (3,026),
constitutes the Group’s total effect on other comprehensive income of remeasurement of pensions recognized in accordance with IAS 19
and is recognized in retained earnings.
2 Translation differences attributable to equity holders, SEK -947 M (2,290), plus hedging of exchange rate risk in foreign operations,
SEK -23 M (81), totaling SEK -970 M (2,371), constitute the change in the Group’s translation reserve.
3 The effect on cash flow hedges, SEK -37 M (286), together with taxes SEK 12 M (-19), totaling SEK -25 M (267), constitutes the change in theGroup’s cash flow hedge reserve.

The change in 2023 and 2022 was attributable to share-based payments and amounted to SEK 470 M (471).

Total

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2022

-790

Dividend to shareholders

Comprehensive income for the year
parent company’s shareholders

2023
Other comprehensive income for the year after tax

Contents

Annual and Sustainability Report 2023

Group overview

Note 26. Equity/earnings per share

Operations

Reserves
Dec 31, 2023

Dec 31, 2022

Translation reserve

4,661

5,631

Cash flow hedge reserve

-152

-127

4,509

5,504

Sustainability report
Corporate governance
Remuneration report

Total

Risk and opportunity management

Reconciliation of reserves

Financial information

Translation reserve

Financial analysis
Financial statements
Notes
Auditor’s report

163

2023

2022

Translation reserve, January 1

5,631

3,259

Translation differences for the year

-947

2,290

Hedging of exchange rate risk in foreign operations

-23

81

4,661

5,631

-127

-394

Translation reserve, December 31

Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Cash flow hedge reserve
Hedge reserve, January 1
Cash flow hedges recognized in other comprehensive income
Hedges for the year

-100

266

Transferred to the income statement

63

20

Taxes attributable to hedging for the year

12

-19

Hedge reserve, December 31

-152

-127

Total reserves

4,509

5,504

Translation reserve
The translation reserve consists of accumulated translation differences from the translation of financial statements forforeign operations. The translation reserve also includes exchange rate differences that have arisen when hedging net
investments in foreign operations. The translation reserve was reset at zero upon the transition to IFRS on January 1,
2004.
Translation differences for the year amount to SEK -947 M (2,290) and consist of negative translation differences mainly
in USD and NOK.
During the year, the translation reserve was affected by exchange rate differences of SEK -23 M (81) due to currency hedging.
The accumulated translation reserve totaled SEK 4,661 M (5,631).

Remeasurement of defined-benefit pension plans
Equity was affected by remeasurement of defined-benefit pension plans in the amount of SEK 209 M (3,026) after
taking into account social insurance contributions and taxes. Remeasurement of pension obligations amounted to
SEK 108 M (8,828). Remeasurements of plan assets were made in the amount of SEK 150 M (-5,727) as the actual
return on the assets exceeds the estimated return. See also Note 28.
2023

2022

Remeasurement of pension obligations

108

8,828

Difference between expected and actual return on plan assets

150-5,727

Social insurance contributions including special payroll tax

15

717

Taxes

-64

-792

Total

209

3,026

IFRS 2 Share-based Payment
The employee ownership programs introduced in 2020 (Seop 5) and 2023 (Seop 6) are recognized as share-based
payments settled with equity instruments, in accordance with IFRS 2. This means that fair value is calculated on thebasis of estimated fulfillment of established performance targets during the measurement period. After the end of themeasurement period the fair value is established. This value is allocated over the three-year vesting period. There is no
reappraisal after fair value is established during the remainder of the vesting period, aside from changes in the numberof shares because the condition of continued employment during the vesting period is no longer fulfilled.
Dividend
After the closing day, the Board of Directors proposed a dividend for 2023 of SEK 5.50 per share (7.50). The proposal isequivalent to a dividend distribution totaling SEK 2,256 M (3,081). No dividend is distributed for the parent company’s
holding of Class B treasury shares. The Board has proposed Tuesday, April 2, 2024 as the record date to receive thedividend. The total dividend amount may change by the record date, depending on acquisitions of Class B treasury
shares and the transfer of Class B shares to participants in Skanska employee ownership programs. The decision on
dividends to shareholders for 2023 will be made by the AGM on March 27, 2024.
SharesInformation on the number of shares as well as earnings and equity per share is presented in the table below.

Number of shares at year-end

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Retained earnings
Retained earnings include the profit for the year plus undistributed Group profits earned in prior years. The parent
company’s statutory reserve is part of retained earnings, along with remeasurements of pension liabilities, which inaccordance with IAS 19 are recognized only under Other comprehensive income.

2022
419,903,072

of which Class A shares

19,619,942

19,654,316

of which Class B shares

400,283,130

400,248,756

Number of Class B treasury shares, December 31of which repurchased Class B shares during the year
Average price, repurchased Class B shares, SEK

Cash flow hedge reserve
Hedge accounting is applied mainly for the PPP portfolio. Unrealized gains and losses on hedging instruments arerecognized in the cash flow hedge reserve. The change during the year amounted to SEK -25 M (267), which was
attributable to changes in exchange rates and market interest rates for hedges of unrealized cash flows as well as to the
portion of carried forward provisions realized in the year and therefore being reclassified to profit or loss. The reserve at
year-end amounted to SEK -152 M (-127).

2023
419,903,072

9,713,560

8,771,931

3,060,000

2,924,000

166.82173.40

Number of shares outstanding, December 31

410,189,512

411,131,141

Average number of shares outstanding

410,758,367

412,037,581

Average number of shares outstanding after dilution

414,137,628

414,922,620

0.82

0.70

Earnings per share, SEK

12.17

20.04

Earnings per share after dilution, SEK

12.07

19.90

Equity per share, SEK

137.01134.05

Average dilution, %Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

164

Note 27. Financial liabilities

Note 26. Equity/earnings per share

Change in number of shares

2023

2022

Number on January 1

411,131,141

412,247,584

Number of Class B shares repurchased-3,060,000-2,924,000

2,118,371

1,807,557

410,189,512

411,131,141

Number of shares transferred to employees
Number on December 31

Dilution effect
In the employee ownership programs introduced in 2020 (Seop 5) and 2023 (Seop 6), the number of potential ordinary
shares is calculated during the measurement period based on the estimated number of shares that will be issued upon
fulfillment of established targets. After the end of the measurement period, Skanska establishes the number of sharesthat may be issued provided that the requirement of continued employment is fulfilled. The number of potential ordinary
shares thus calculated is then reduced by the difference between the payment Skanska is expected to receive and theaverage share price during the period.
Excluding social insurance contributions, the cost of both employee ownership programs is estimated at a total of
SEK 1,770 M, allocated over the three-year vesting period, equivalent to 5,535,129 shares. The maximum dilution at
the end of the vesting period is estimated at 1.33 percent.
In 2023, the cost of both programs amounted to SEK 470 M, excluding social insurance contributions. Share awards
earned but not yet allotted by the end of 2023 totaled 3,379,261 shares. The dilution effect up to and including 2023
amounted to 0.82 percent.
Capital management
Capital requirements vary between business streams. Skanska’s construction projects are mainly based on customer
funding. As a result, in its Construction business stream, the company can operate with free working capital (negative).
The free working capital in the Construction business stream combined with the profits from the Group’s operations,as well as the possibility of increasing borrowing through credit financing, make it possible for Skanska to financeinvestments in in-house project development.
In light of the Construction business stream’s large volumes with differentiated risk in various types of assignments andcustomer demands for guarantees, such as performance guarantees in publicly procured projects in the US market, theequity requirement is significant. It is also necessary to take into account financing of goodwill and future investments in
Project Development.

For information on financial risks and the Financial Policy, see Note 6.
Non-current financial liabilities

Dec 31, 2023

Dec 31, 2022

Financial liabilities measured at fair value through profit or loss
Derivatives

1

Financial liabilities at amortized cost
Liabilities to credit institutions

2,607

Bonds issued

4,644

Other liabilities

2,662

47

52

Total

7,300

2,714

 of which interest-bearing non-current financial liabilities

7,298

2,714

 of which non-interest-bearing non-current financial liabilities

1

Current financial liabilities
Financial liabilities measured at fair value through profit or loss
Derivatives

114

150

Construction loans, cooperative housing associations

1,965

3,625

Liabilities to credit institutions

1,504

Financial liabilities at amortized cost

Bonds issued

519
480

A number of financial targets have been established that are deemed to best reflect the profitability of the operations
and best demonstrate the financial scope for investments and growth. The return on equity and on capital employed isa measure of how well the capital provided by the shareholders and lenders is being used.

Other liabilities

32

80

Total

3,615

4,854

The target for 2023 is a return on the Group’s equity of at least 18 percent, an operating margin within Construction ofat least 3.5 percent, a return on capital employed for Investment Properties of at least 6 percent and a return on capital
employed calculated jointly for the business streams within Project Development of at least 10 percent. There is also alimit for financial indebtedness, measured as adjusted net debt, of SEK -10 billion. Skanska’s dividend policy is to pay
out 40–70 percent of net profit for the year after tax to the shareholders, provided that the company’s overall financial
situation is stable.

 of which interest-bearing current financial liabilities

3,501

4,704

The Board has determined that the Group’s equity is at a reasonable level based on what Skanska’s financial position
and market circumstances require.

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Financial liabilities are allocated between non-current and current liabilities. Normally, a maturity date within one year isrequired if a liability is to be treated as current. This does not apply to discounted operating liabilities, which are part ofSkanska’s operating cycle and are therefore recognized as current liabilities regardless of their maturity date.

 of which non-interest-bearing current financial liabilities
Total carrying amount for financial liabilities

114

150

10,915

7,568

Contents

Annual and Sustainability Report 2023

Group overview

Note 28. Pensions

Operations

Pension provisions are recognized in accordance with IAS 19 Employee Benefits.

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Pension liability according to the statement of financial position
According to the statement of financial position, interest-bearing pension liabilities amounted to SEK 3,167 M (2,891)
and interest-bearing pension receivables amounted to SEK 3,118 M (2,400). The net amount of interest-bearing pension
liabilities and interest-bearing pension receivables was SEK 49 M (491).
Skanska has defined-benefit pension plans in Sweden, Norway and the UK. The pension in these plans is mainly basedon final salary or average earnings during the term of employment. The plans include a large number of employees, but
Skanska also has defined-contribution plans in these countries. Group companies in other countries have pension plans
reported as defined-contribution plans.
Defined-benefit plans
The pension plans mainly consist of retirement pensions. Each respective employer usually has an obligation to pay alifetime pension. Benefits are based on the number of years of employment. The employee must belong to the plan for acertain number of years to earn full retirement pension entitlement. For each year, the employee earns increased pension
entitlements, which are reported as pension earned during the period plus an increase in pension obligation.
Pension plans are funded by securing pension obligations with assets in pension funds and provisions in the accounts.
The plan assets in Sweden are smaller than the pension obligations. The difference is therefore recognized as a liability
in the statement of financial position. The plan assets in Norway and the UK exceed the pension obligations. The
difference is therefore recognized as a receivable. The ceiling rule which, in some cases, limits the value of these assets
in the statement of financial position does not apply according to the existing pension foundation statutes, with the
exception of one of the plans in Norway and one of the smaller plans in the UK. The carrying amount of the plan assets
was reduced by SEK 33 M (30) due to the limit in the ceiling rule.

The largest defined-benefit plan for Skanska in Sweden is the ITP 2 plan, in which pensions are based on final salary on
retirement. ITP 2 covers salaried employees born in 1978 or earlier. The pension obligations are secured through assets
in a pension fund and through insurance with PRI Pensionsgaranti. The pension obligation is lifelong and sensitive tochanges in the discount rate, pay increases, inflation and life span.
A small portion of the ITP 2 plan is secured by insurance from the retirement insurance company Alecta. This is amulti-employer insurance plan, and there is insufficient information to report these obligations as a defined-benefit plan.
Pensions secured by insurance from Alecta are therefore reported as defined-contribution plans. Contributions paid in
2023 amounted to SEK 19 M (22). At the end of 2023, the collective funding ratio of defined-benefit plans in Alecta totaled
a preliminary 157 percent (172). The collective funding ratio consists of assets as a percentage of actuarial obligations.
Within Skanska Norway, the largest defined-benefit pension plan is the Skanska Norge Pensionskassa pension fund. This
plan covers almost all employees of Skanska in Norway and the pension is based on final salary and number of years of
employment with Skanska. The pension obligations are secured through assets in the pension fund. The Skanska Norge
Pensionskassa pension fund has been closed for new members since mid-2018. The pension obligation is lifelong andsensitive to changes in the discount rate, pay increases, inflation and life span.
The largest of Skanska’s defined-benefit pension plans in the UK is the Skanska Pension Fund. The plan covers salaried
employees and is based on average earnings over the period of employment. The pension is remeasured followingchanges in inflation (index-linked). The pension obligations are secured through assets in the pension fund. The Skanska
Pension Fund has been closed for vesting and new members since the end of the first quarter of 2018. The pension
commitment is sensitive to changes in the discount rate, inflation and life span.
Net liability related to employee benefits, defined-benefit plans
Dec 31, 2023

Dec 31, 2022

Pension obligations, funded plans, present value, December 31

21,787

21,693On the closing day the pension obligations amounted to SEK 21,787 M (21,693). During the year, pension obligations wereaffected by remeasurements. The remeasurements are included in other comprehensive income in a net amount of
SEK 108 M (8,828). Pension obligations were also affected by the cost of vested pensions and interest expense exceeding
pensions paid.

Plan assets, fair value, December 31-21,738-21,202

49

491

The plan assets amounted to SEK 21,738 M (21,202). The plan assets were affected during the year by remeasurements,
since the actual return on the assets exceeded the estimated return. The remeasurements are included in othercomprehensive income in the amount of SEK 150 M (-5,727).

2023

The return on plan assets recognized in profit or loss amounted to SEK 849 M (445), while the actual return amounted to
SEK 999 M (-5,282).
The plan assets mainly consist of equities, interest-bearing securities, mutual fund units and investments in properties
and PPP projects. No assets are used in Skanska’s operations. The number of directly owned shares in Skanska AB
totaled 0 (0) Class B shares. However, there is an insignificant percentage of indirectly owned shares in Skanska AB via
investments in various mutual funds.
There are various types of risk inherent in the company’s defined-benefit pension plans. Pension obligations aremainly affected by the relevant discount rate, pay increases, inflation and life expectancy. The risk inherent in the plan
assets is mainly market risk. Overall, these risks may result in volatility in the company’s equity and in increased future
pension costs and higher than estimated pension disbursements. Skanska continually monitors changes in its pension
obligations and updates the most important assumptions every quarter and other assumptions at least once a year.
Pension commitments are calculated by independent actuaries. The company has prepared policy documents forthe management of plan assets in the form of investment guidelines regulating permitted investments and allocation
frameworks for these. In addition, the company uses external investment advisors who continually monitor development of
the plan assets. The long duration of the pension obligations is partly matched by long-term investments in PPP projects andproperty investments, and investments in long-term interest-bearing securities.

Download PDF to print165

Net liability according to statement of financial position
Pension obligations and plan assets by country
SwedenNorwayUK

Total

Pension obligations

9,264

4,396

8,127

21,787

Plan assets-6,097-6,705-8,936-21,738

Net liability according to statement offinancial position

3,167-2,309

-809

49

2022
Pension obligations

8,876

4,831

7,986

21,693

Plan assets-5,985-6,464-8,753-21,202

Net liability according to statement offinancial position

2,891-1,633-767

491

Contents

Group overview
Operations

Annual and Sustainability Report 2023

Note 28. Pensions, cont.

Interest-bearing pension liability, net

Sustainability report
Corporate governance166

Net pension liability, January 1

Breakdown of pension obligations and average duration by country
2023

2022

2023

SwedenNorway

UK

491

3,798

Active members’ portion of obligations

35%

38%

4%

Pension expenses

329

575

Dormant pension rights

28%

16%

54%

Remuneration report

Benefits paid by employers

-301

-267

Pensioners’ portion of obligations

37%

46%

42%

Funds contributed by employers

-274

-444

Risk and opportunity management

Remeasurements-258-3,10117 years

16 years

13 years

Curtailments and settlements

-43

-11

Exchange rate differences

105

-59

2022

Net liability according to statement of financial position

49

491

Active members’ portion of obligations

38%

42%

4%

Dormant pension rights

26%

15%

54%

Pensioners’ portion of obligations

36%

43%

42%

17 years

17 years

14 yearsFinancial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Weighted average duration

Pension obligations
January 1

2023

2022

21,69329,832

Pensions earned during the year

324

532

Interest on obligations

859

493

Annual General Meeting

Benefits paid by employers

-301

-267

Investors’ calendar and addresses

Benefits paid from plan assets

-503

-501

– Actuarial gains (-)/losses (+), changed financial assumptions-511-10,277– Actuarial gains (-)/losses (+), changed demographic assumptions

-113

24

– Experience-based changes

516

1,425

Curtailments and settlements

-43

-9

Remeasurements:

Exchange rate differences
Pension obligations, present value

-134

441

21,787

21,693Weighted average duration
Plan assets
January 1

2023

2022

21,202

26,034

Estimated return on plan assets

849

445

Funds contributed by employers

274

444

Funds contributed by employees

75

Benefits paid

-503

-501

Difference between actual return and estimated return

150-5,727-241

500

21,73821,202

2023

2022

Curtailments and settlements
Exchange rate differences
Plan assets, fair value

2

Amounts contributed are expected to total SEK 350 M in 2024.
Plan assets not included in carrying amount due to the limit in the ceiling rule

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January 1

30

61

Change during the year3

-31

Plan assets not included in carrying amount33

30

Contents

Annual and Sustainability Report 2023

Group overview

Note 28. Pensions, cont.

Operations

Plan assets and return by country

167

Equities and mutual funds, interest-bearing securities and hedge funds were measured at current market prices.
Property investments and infrastructure projects were measured by discounting future cash flows.

Sustainability report2023

SwedenNorwayUK

Shares

30%

45%

8%

80 percent of total plan assets have a quoted price in an active market.

Corporate governanceInterest-bearing securities

33%

40%

63%

Actuarial assumptions

Alternative investments

37%

15%

29%

2023

Remuneration report
Risk and opportunity management

3.70%

3.20%

4.70%

Discount rate, January 1

3.70%

3.20%

4.70%

3.20%

7.40%

4.60%

Discount rate, December 31

3.40%

3.50%

4.60%

Estimated return on plan assets for the period

3.70%

3.20%

4.70%

Expected pay increase, December 31

3.25%

2.75%

3.50%

Expected inflation, December 31

1.75%

2.00%

3.00%

Life expectancy after age 65, men

23 years

22 years

22 yearsLife expectancy after age 65, women

25 years

25 years

24 yearsLife expectancy table

DUS23

K2013

S3/CMI 2022

2022

SwedenNorway

UK

2022
26%

38%

11%

Interest-bearing securities

35%

50%

58%

Alternative investments

39%

12%

31%

Auditor’s review report of the sustainability report

Estimated return

1.60%

1.90%

1.60%

Quarterly information

Actual return-4.70%-7.60%-33.60%Share data

Total plan assets by asset class
Dec 31, 2023

Dec 31, 2022

Swedish equities and mutual funds

659

513

Norwegian equities and mutual funds

1,053

939

87

620

Notes
Auditor’s report

Annual General Meeting
Investors’ calendar and addresses

Equities and mutual funds

UK equities and mutual funds
Global mutual funds

3,702

2,918

Total equities and mutual funds

5,501

4,990

Swedish bonds

1,737

1,839

Norwegian bonds

1,162

1,556

UK bonds

5,274

5,065

Bonds in other countries

2,104

1,908

Total interest-bearing securities

10,277

10,368

Alternative investments
Hedge funds
Property investments

Demographic assumptions

Financial assumptions
Discount rate, January 1

1.60%

1.90%

1.60%

Discount rate, December 31

3.70%

3.20%

4.70%

Estimated return on plan assets for the period

1.60%

1.90%

1.60%

Expected pay increase, December 31

3.25%

3.00%

3.50%

Expected inflation, December 31

2.00%

2.25%

3.25%

Life expectancy after age 65, men

23 years

22 years

22 yearsLife expectancy after age 65, women

25 years

25 years

24 yearsLife expectancy table

DUS14

K2013

S3 2021

Demographic assumptions

Interest-bearing securities

Download PDF to printUK

Actual return

SharesFinancial statements

NorwayEstimated return

Financial information
Financial analysis

SwedenFinancial assumptions

219

530

1,894

1,976

PPP investments

1,179

629

Other

2,668

2,709

Total alternative investments

5,960

5,844

Total plan assets

21,73821,202All three countries where Skanska has defined-benefit plans have an extensive market for high-grade long-term
corporate bonds, including mortgage bonds. The discount rate is established on the basis of the market yield for thesebonds on the closing day.

Contents

Group overview
Operations

Annual and Sustainability Report 2023

168

Note 28. Pensions, cont.

Sensitivity of pension obligations to changes in assumptions

Sustainability report

Defined-contribution plans
These plans mainly cover retirement pension, disability pension and family pension. The premiums are paid regularly
during the year by the respective Group company to separate legal entities, for example insurance companies. The sizeof the premium is based on salary. The pension expenses for the period are included in the income statement.

SwedenNorwayUK

Total1

Pension obligations, December 31, 2023

9,264

4,396

8,127

21,787

Discount rate increase of 0.25%

-350

-250

-250

-850

Remuneration report

Discount rate decrease of 0.25%

350

250

250

850

Increase of 0.25% in expected pay increase

100

75

0

175

Risk and opportunity management

Decrease of 0.25% in expected pay increase

-100

-75

0

-175

Defined-benefit pension plans vested during the period

Increase of 0.25% in expected inflation

300

100

200

600

Less: Funds contributed by employees

Decrease of 0.25% in expected inflation

-300

-100

-200

-600

Life expectancy increase of 1 year

325

175

125

625

Corporate governance

Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report

1 Estimated change in pension obligation/pension liability if the assumption is increased or decreased for all three countries.
If pension liability increases for all three countries, the Group’s equity is reduced by 90 percent of the increase in the pension liability after
taking into account deferred tax and social insurance contributions.

Sensitivity of plan assets to changes in estimated return and actual return
SwedenNorwayUK

Total1

Plan assets, December 31, 2023

6,097

6,705

8,936

21,738Return increase of 5%

300

350

450

1,110

Return decrease of 5%

-300

-350

-450

-1,110Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

1 If the actual return exceeds the estimated return by 5 percent, the gain upon remeasurement is expected to amount to SEK 1,110 M.
If the actual return falls below the estimated return by 5 percent, the loss upon remeasurement is expected to amount to SEK 1,110 M.

The sensitivity analyses are based on existing circumstances, assumptions and populations. Application at other levels
may produce different effects of changes.

Total pension expenses in the income statement for defined-benefit plans and defined-contribution plans
2022

-324

-532

7

5

Interest on obligations

-859

-493

Estimated return on plan assets

848

445

Curtailments and settlements

43

11

Pension expenses, defined-benefit plans

-286

-564

Pension expenses, defined-contribution plans-1,896-1,829Social insurance contributions, defined-benefit and defined-contribution plans1
Total pension expenses

-141

-168

-2,323-2,561

1 Refers to special payroll tax in Sweden and employer contribution in Norway.

Allocation of pension expenses in the income statement
2023

2022

Cost of sales-1,835-1,989Selling and administrative expenses

-477

-524

Financial items
Total pension expenses

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2023

-11

-48

-2,323-2,561

Contents

Annual and Sustainability Report 2023

169

Group overview

Note 29. Provisions

Operations

Provisions are reported in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. See Note 1.

Sustainability report
Corporate governance
Remuneration report

Provisions are allocated in the statement of financial position between non-current liabilities and current liabilities.
Provisions are both interest-bearing and non-interest-bearing. Provisions that are part of the operating cycle arerecognized as current. Interest-bearing provisions that fall due within a year are treated as current.

Current provisions
Dec 31, 2023

Risk and opportunity management
Financial information

Dec 31, 2022

Non-interest-bearing

11,087

10,368

Total

11,087

10,368Financial analysis
Financial statements

The change in provisions broken down into reserve for legal disputes, provision for warranty obligations and other provisions is presented in the table below. Regarding the reserve for legal disputes, see also Note 33.

Notes
Reserve for legal disputes

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

January 1

Provision for warranty obligations

Other provisions

Total

2023

2022

2023

2022

2023

2022

2023

2022

2,644

2,413

3,770

3,892

3,954

4,935

10,368

11,239

1,475

1,835

1,383

3,829

3,386

Divested provisions

-17

-5

-22

Share data

Provisions for the year

488

527

1,506

Annual General Meeting

Provisions utilized

-587

-309

-1,106-780-904-2,092-2,597-3,181

Investors’ calendar and addresses

Unutilized amounts, reversed

-195

-189

-517

-962

-160

-213

-872

-1,365

Exchange rate differences

228

121

41

170

-19

169

250

459

Reclassifications

20

82

189

-9

-100

-222

109

-148

2,597

2,644

3,883

3,770

4,606

3,954

11,087

10,368December 31

The normal cycle time for Other provisions is one to three years.

Specification of Other provisions
Dec 31, 2023

Dec 31, 2022

Provisions for restructuring measures

238

124

Employee-related provisions

551

366

Environmental obligations

137

127

Provision for social insurance contributions for pensions and share-based payments

610

669

Contingent considerations1

415

469

Provisions for commitments in joint ventures

323

210

Loss allowance

1,012

604

Provisions for properties divested

756

837

Damage restoration

156

161

Tax and VAT (other than corporate tax)

97

87

Other provisions
Total
1 Acquisitions of current-asset properties. These are reported as financial instruments. See Note 6.

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311

299

4,606

3,954

Provisions for legal disputes are provisions in the Construction business stream for projects that have been completed,
as well as other disputes.
Provisions for warranty obligations are for expenses that may arise during the warranty period and for rent guarantees
for properties sold by the Commercial Property Development business stream. Such provisions in Construction are
based on individual assessments of each project or average experience-based cost, expressed as a percentage ofsales during a five-year period. The expenses are charged to each project on a continuous basis. Provisions for warranty
obligations in other business streams are based on individual assessments of each project. The change during the year
mainly pertained to Construction, Residential Development and Commercial Property Development.
Provisions for restructuring measures mainly consist of items related to Poland, Sweden, Czechia and thediscontinuation of operations in Latin America.
Employee-related provisions consist of items such as the cost of profit-sharing, certain bonus programs and otherobligations to employees.
Provisions for environmental obligations include the cost of restoring gravel pits to their natural state in Swedish
operations.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

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Annual and Sustainability Report 2023

170

Note 30. Trade and other payables
Non-interest-bearing liabilities in business operations are recognized as Trade and other payables. Such liabilities arepart of the Group’s operating cycle and are recognized as current liabilities.

Trade payables

Dec 31, 2023

Dec 31, 2022

13,105

13,998Other operating liabilities to associated companies
Other operating liabilities1

8,045

8,681

Accrued expenses and prepaid income

19,26019,161

Total

40,41041,84013,105

13,998

Of which financial instruments reported in Note 6 Financial instruments and financial
risk management
Trade payables Trade and other payables including accrued interest expense
Of which non-financial instruments

369

694

13,474

14,692

26,93527,148

1 O ther operating liabilities includes SEK 361 M (407) for checks issued but not yet cashed, mainly in the USA. See Note 1.

Contents

Group overview

Annual and Sustainability Report 2023

171

Note 31. Specification of interest-bearing net receivables/net liabilities per asset and liability

Operations

Dec 31, 2023

Sustainability report
Corporate governanceDec 31, 2022

Interest-bearing Non-interest-bearing

Total

Interest-bearing Non-interest-bearing

Total

3,758

ASSETS
Non-current assets

Remuneration report

Investment Properties

5,141

5,141

3,758

Property, plant and equipment

8,035

8,035

7,803

7,803

Risk and opportunity management

Property, plant and equipment, right-of-use assets

3,082

3,082

3,256

3,256

Goodwill

3,919

3,919

4,160

4,160

Other intangible assets

348

348

488

488

Financial analysis

Investments in joint ventures and associated companies

2,072

2,072

2,901

2,901

Financial statements

Non-current financial assets

38

3,607

Notes

Deferred tax assets

Financial information

Auditor’s report
Auditor’s review report of the sustainability report

Total non-current assets

4,954
4,954

38

4,992

2,518

2,518

25,15430,108

3,569
3,569

995

995

23,401

26,97058,474Current assets

Quarterly information

Current-asset properties

58,66058,66058,474

Share data

Current-asset properties, right-of-use assets

3,613

3,613

3,676

3,676

Annual General Meeting

Inventories

1,275

1,275

1,300

1,300

Investors’ calendar and addresses

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Current financial assets

314

7,498

99

14,413

Tax assets

7,184

1,246

1,246

14,313

1,248

1,248

Contract assets

7,865

7,865

7,772

7,772

Trade and other receivables

27,01227,012

27,726

27,726

Cash and cash equivalents

17,912

17,912

10,014

Total current assets

25,09699,985125,082

24,327100,296

124,623

10,014TOTAL ASSETS

30,050125,139

155,189

27,896123,697

151,593

Contents

Group overview

Annual and Sustainability Report 2023

172

Note 31. Specification of interest-bearing net receivables/net liabilities per asset and liability, cont.

Operations

Dec 31, 2023

Sustainability report
Corporate governance

Total

Interest-bearing Non-interest-bearing

Total

LIABILITIES
Non-current liabilities

Remuneration reportNon-current financial liabilities

7,298

Lease liabilities

6,137

Risk and opportunity management

Pensions

3,167

Financial information

Dec 31, 2022

Interest-bearing Non-interest-bearing

Deferred tax liabilities
Total non-current liabilities

1

7,300

2,714

2,714

6,137

6,328

6,328

3,167

2,891

2,218

2,218

16,603

2,219

18,822

114

2,891
1,943

1,943

11,933

1,943

13,876

3,615

4,704

150

4,854

909

953
388

388

Financial analysis
Financial statements

Current liabilities

Notes

Current financial liabilities

3,501

Lease liabilities

909

Auditor’s report
Auditor’s review report of the sustainability report

Tax liabilities

779

779

953

Current provisions

11,087

11,087

10,36810,368

Quarterly information

Contract liabilities

23,22023,22024,05924,059

Share data

Trade and other payables

40,41040,41041,84041,840

Annual General Meeting

Total current liabilities

4,411

75,60980,0205,657

76,80582,462TOTAL LIABILITIES

21,014

77,82998,842

17,59078,74896,338Investors’ calendar and addresses

Total equity

56,34755,255EQUITY AND LIABILITIES

155,189

151,593

Interest-bearing net receivables (+)/net liabilities (-)

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9,037

10,306

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Group overview

Annual and Sustainability Report 2023

173

Note 32. Expected recovery periods for assets and liabilities

Operations
Sustainability report
Corporate governanceDec 31, 2023
Amounts expected to be recovered

After 12 months

Total

Within 12 months

After 12 months

Total

5,141

5,141

1,650

6,385

3,758

3,758

8,035

1,602

6,201

936

7,803

2,147

3,082

901

2,356

3,256

3,919

3,919

4,160

4,160

187

348

ASSETS
Non-current assets

Remuneration report

Investment Properties

Risk and opportunity management

Property, plant and equipment, right-of-use assets1

Financial information

Dec 31, 2022

Within 12 months

Property, plant and equipment1
Goodwill
Other intangible assets1

161

211

277

488

Financial analysis

Investments in joint ventures and associated companies2

2,072

2,072

2,901

2,901

Financial statements

Non-current financial assets

4,992

4,992

3,607

3,607

Notes

Deferred tax assets3

2,518

2,518

995

995

2,747

27,361

30,1082,714

24,256

26,97058,474

Auditor’s report
Auditor’s review report of the sustainability report

Total non-current assets
Current assets

Quarterly information

Current-asset properties4

16,90041,76058,66020,60034,874

Share data

Current-asset properties, right-of-use assets4

200

3,413

3,613

400

3,276

3,676

Annual General Meeting

Inventories

1,167

108

1,275

1,128

172

1,300

Investors’ calendar and addresses

Current financial assets

7,498

7,498

14,413

Tax assets

1,246

1,246

1,248

Contract assets5

7,279

585

7,865

6,839

933

7,772

Trade and other receivables5)

21,6985,313

27,012

20,235

7,491

27,726

1,248

Cash and cash equivalents

17,912

17,912

10,014

Total current assets

73,901

51,180125,082

74,877

46,746124,623

TOTAL ASSETS

76,64878,541

155,189

77,591

71,002

151,593

1 In the case of amounts expected to be recovered within 12 months, the expected annual depreciation/amortization has been recognized.
2 The breakdown cannot be estimated.
3 Deferred tax assets are expected to be recovered in their entirety after 12 months.
4 Recovery of current-asset properties and right-of-use assets within one year is based on an historical assessment of the past three years.
5 Current receivables that fall due in more than 12 months’ time are part of the operating cycle and are thus recognized as current.

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14,413

10,014

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Group overview

Annual and Sustainability Report 2023

174

Note 32. Expected recovery periods for assets and liabilities, cont.

Operations
Sustainability report
Corporate governance
Remuneration report

Dec 31, 2023
within12 months

Amounts expected to be paid

Dec 31, 20221)

after
12 months

Total

within12 months

after
12 months

Total

LIABILITIES
Non-current liabilities
Non-current financial liabilities

7,300

7,300

2,714

2,714

Risk and opportunity management

Lease liabilities

6,137

6,137

6,328

6,328

Financial information

2,600

2,891

Deferred tax liabilities

Financial analysis

Pensions2

324

Total non-current liabilities

2,843

3,167

2,218

2,218

324

18,49818,822

2,832

783

291

1,943

1,943

291

13,585

13,876

1,689

4,854

Financial statements
Notes

Current liabilities
3,615

3,165

Lease liabilities

909

909

953

953

Auditor’s review report of the sustainability report

Tax liabilities

779

779

388

388

Quarterly information

Current provisions

5,033

6,054

11,087

3,846

6,522

10,368

Share data

Contract liabilities

21,215

2,006

23,22019,444

4,615

24,059Auditor’s report

Annual General Meeting
Investors’ calendar and addresses

Current financial liabilities

Trade and other payables

37,673

2,736

40,41038,694

3,146

41,840Total current liabilities

68,441

11,57980,02066,49015,972

82,462TOTAL LIABILITIES

68,76530,077

98,842

66,781

29,557

96,338

Total equity

56,34755,255EQUITY AND LIABILITIES

155,189

151,593

1 Restated as described in Note 43.
2 Within 12 months refers to expected benefit payments (payments from funded plans are not included).

Note 33. Assets pledged, contingent liabilities and contingent assets
Assets pledged for liabilities
Assets pledged
Shares and participations

Shares and receivables
Dec 31, 2023

Dec 31, 2022

1,190

2,328

Own obligations

Receivables

680

772

Total

1,869

3,100

Joint ventures within the PPP portfolio are reported as pledged assets when the holdings in the project company – which
may be owned directly by Skanska or owned through intermediate holding companies – are provided as security forloans from banks or lenders other than the co-owners.

Dec 31, 2023

Dec 31, 2022

Other liabilities

680

772

Total own obligations

680

772

Other obligations

1,190

2,328

Total

1,869

3,100

Assets pledged for other liabilities, SEK 0.7 billion (0.8), relate predominantly to financial instruments pledged ascollateral to clients in conjunction with contracting work in the USA.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 33. Assets pledged, contingent liabilities and contingent assets, cont.

Note 34. Foreign exchange rates and effect of changes in foreign exchange rates

Contingent liabilities
Contingent liabilities are reported in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
See Note 1. Tax cases, court proceedings and arbitration are not included in contingent liability amounts. Instead, aseparate description is provided.

Exchange rates are dealt with in accordance with IAS 21 The Effect of Changes in Foreign Exchange Rates.

Contingent liabilities, excluding obligations for partners’ future performance in joint operations, amounted to
SEK 1,513 M (1,210). This amount is mainly related to joint ventures and tenant-owners’ associations within theCommercial Property Development and Residential Development operating segments.
Skanska’s obligations for partners’ future performance in joint operations relate to contracting work within Construction
and Project Development. If a partner does not fulfill its part of the contract the other partners have joint and several
liability for ensuring that this part of the contract is also fulfilled. Partners’ share of future performance in joint operations
amounted to SEK 22,865 M (31,919). In the event Skanska takes over part of the completion obligation, Skanska’s orderbacklog will increase correspondingly.
Skanska selectively forms joint operations and joint ventures when this is beneficial in view of project size and/or the typeof commitments involved in the project. Combining expertise and resources with other construction companies is then ameans of optimizing project planning and execution as well as managing specific project risks. External partners in thesejoint arrangements are scrutinized in accordance with the tender approval process. For more information regarding joint
operations and joint ventures, see Note 20 B and Note 20 C.
The Brazilian competition authority, the Administrative Council of Economic Defense (CADE), and the Comptroller
General of the Union (CGU) initiated in 2015 administrative procedures against Skanska Brasil in relation to certain
Petrobras projects. In 2016, CGU decided that Skanska Brasil shall be excluded from public tenders during no lessthan two years. Skanska Brasil’s appeal is still pending. CADE has yet to decide on the cartel case, which currently issuspended pursuant to a court order.
The Federal Audit Court (TCU) is an authority auditing public contracts, including those of Petrobras, and Skanska Brasil
has some contracts under TCU review. In 2020, TCU decided in principle that damages for overpricing in all contracts
entered into by members of the Petrobras cartel can be made in accordance with an econometric model. TCU has in
an audit report in 2020 recommended application of the model to calculate damages for overpricing in a contract withPetrobras that Skanska Brasil performed in joint venture with others. TCU decided in 2021, based on the econometricdamage calculation, to start an administrative process regarding alleged overpricing in the project. Skanska Brasil
submitted in 2021 its defense, including a request that the case should be dismissed as it was time-barred. In November
2023, Skanska Brasil filed an appeal to the Federal Supreme Court requesting that the case shall be considered timebarred and must be dismissed by TCU. In the event Skanska Brasil’s appeal on the time-bar is unsuccessful, a decision
by TCU is expected during 2024. Such decision may, on request by Skanska Brasil, be subject to further review by TCU.
In 2022, TCU technical unit completed an investigation regarding alleged inaccuracies in two change orders in theabove-mentioned project. The investigation alleges that Petrobas wrongfully paid a large amount to the joint venture
as compensation for Petrobras delaying the project by two years. TCU has not yet decided whether an administrative
process should be started in this case. Skanska Brasil considers also this case to be time-barred.
In 2006, tax authorities in Argentina started investigating many companies, including Skanska S.A, for use of fakeinvoices. Skanska cooperated with the authorities and corrected its tax returns. In 2011, the Appeal Court found noevidence of wrongdoings, but the Supreme Court decided in 2015 that the case should be reopened. In 2017, theFederal Criminal Court decided to once again indict many individuals, including 10 former Skanska S.A employees, forpaying bribes and participating in procurement fraud. A trial is now scheduled for April 2024. Skanska sold its Argentine
business in 2015, but is managing the case due to an ongoing obligation to the buyer.
Contingent assets
The Group has no contingent assets of significant importance in assessing the position of the Group.

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175

Exchange rates
The SEK exchange rate fluctuated during the year against currencies in countries in which the Group does business.
Average exchange rate

Change, %Currency Country

2023

2022

2021

2022–2023

2021–2022

CZK

Czechia

0.478

0.433

0.396

11

9

DKK

Denmark

1.540

1.429

1.364

8

5

EUR

EU

11.47510.62810.146

8

5

GBP

UK

13.196

12.46311.800

6

6

NOK

Norway

1.005

1.052

0.998

-4

5

PLN

Poland

2.529

2.269

2.222

11

2

USD

USA

10.61310.117

8.580

5

18

Closing day exchange rate

Change, %Currency Country

2023

2022

2021

2022–2023

2021–2022

CZK

Czechia

0.449

0.459

0.409

-2

12

DKK

Denmark

1.488

1.490

1.377

0

8

EUR

EU

11.08911.077

10.239

0

8

GBP

UK

12.76012.48812.195

2

2

NOK

Norway

0.986

1.055

1.025

-6

3

PLN

Poland

2.555

2.364

2.230

8

6

USD

USA

10.01210.374

9.060

-3

15

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Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis

Annual and Sustainability Report 2023

176

Note 34. Foreign exchange rates and effect of changes in foreign exchange rates, cont.

Income statement
During the year, the average exchange rate for the Swedish krona weakened against all of the Group’s other currencies
with the exception of the Norwegian krona. The total exchange-rate effect on Group revenue was SEK 5,685 M (14,072),
equivalent to 3.4 (9.8) percent. The total exchange-rate effect on the Group’s operating income was SEK -104 M (587),
equivalent to -2.0 (7.1) percent. See the table below.
2023

USD

EUR

GBP

NOK

CZK

PLN

Other

Total

2022

Revenue

3,565

892

1,003

-837

654

404

4

5,685

Revenue

USD

EUR

GBP

NOK

CZK

PLN

Other

Total

10,812

694

933

918

634

81

0

14,072

Operating income

88

-4

-8

-185

33

26

-54

-104

Operating income

377

83

24

54

46

4

-1

587

Income after financial items

139

-32

-6

-29

44

29

-54

91

Income after financial items

447

75

26

60

54

4

-1

665

Profit for the period

140

-35

-3

-20

38

26

-54

92

Profit for the period

281

62

18

47

42

3

-1

452

Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

Consolidated statement of financial position by functional currency
Consolidated total assets increased SEK 3.6 billion, from SEK 151.6 billion to SEK 155.2 billion. The effect of changes inforeign exchange rates was SEK -2.5 billion. The closing exchange rate for SEK weakened against GBP and PLN, andstrengthened against USD and NOK.

USD

GBP

EUR

NOK

CZK

PLN

DKK

Other
foreigncurrencies1

5.1

5.1

Property, plant and equipment

1.7

0.4

0.4

2.8

0.7

0.1

0.0

0.0

1.9

8.0

Property, plant and equipment, right-of-use
assets

0.8

0.8

0.3

0.4

0.1

0.1

0.0

0.0

0.6

3.1

Intangible assets

0.5

1.4

0.5

1.1

0.1

0.0

0.0

0.0

0.7

4.3

Shares and participations

0.3

0.0

0.1

0.4

0.1

0.0

0.0

0.0

1.1

2.1

Interest-bearing receivables

40.0

3.8

3.4

8.2

2.6

2.3

0.0

-49.9

1.8

12.1

Current-asset properties

15.4

4.5

1.9

1.7

3.2

0.0

12.5

58.7

Share data
Annual General Meeting

Dec 31, 2023, SEK bn

Investors’ calendar and addresses

AssetsHedgesof foreign
currency2

Investment Properties

SEK

Total

15.6

3.9

Current-asset properties, right-of-use
assets

2.5

0.0

0.5

0.0

0.0

0.1

0.0

0.0

0.5

3.6

Non-interest-bearing receivables

20.9

3.6

2.6

5.7

1.7

0.6

0.1

0.1

5.0

40.2

Cash and cash equivalents

1.3

0.0

0.1

0.1

0.0

0.0

0.0

0.0

16.4

17.9

83.5

14.0

23.4

23.2

7.3

4.8

3.2

-49.8

0.0

45.5

155.2

Equity attributable to equity holders3

13.7

0.0

3.6

6.0

3.2

0.7

0.7

-1.0

-0.1

29.4

56.2

Non-controlling interests

0.0

0.0

0.0

0.0

0.1

0.0

0.0

0.0

Interest-bearing liabilities

38.0

6.7

13.4

4.6

0.6

1.3

2.3

-49.9

Total
Equity and liabilities

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Non-interest-bearing liabilities

31.8

7.3

6.4

12.5

3.4

2.8

0.3

1.1

Total

83.5

14.0

23.4

23.2

7.3

4.8

3.2

-49.8

0.0

0.1

0.1

3.9

21.0

12.2

77.8

0.0

45.5

155.2

1 Including elimination of intra-Group receivables and liabilities.
2 Amount refers to hedges before tax deduction. Net investments abroad are currency-hedged to a certain extent through foreign currency loans and currency forwards. See also Note 6. Hedging of net investments through foreign currency loans, mainly in GBP, amounted to SEK 92 M.
3 The respective currencies are calculated including consolidated goodwill and the net amount of Group surpluses after deducting deferred taxes.

Contents

Group overview

Annual and Sustainability Report 2023

177

Note 34. Foreign exchange rates and effect of changes in foreign exchange rates, cont.

Operations
USD

GBP

EUR

NOK

CZK

PLN

DKK

Other
foreigncurrencies1

Remuneration report

Property, plant and equipment

1.8

0.6

0.4

2.5

0.7

0.1

0.0

0.0

Risk and opportunity management

Property, plant and equipment, right-of-use
assets

0.8

0.8

0.4

0.5

0.2

0.1

0.0

0.0

0.6

3.3

Intangible assets

0.5

1.4

0.6

1.3

0.1

0.0

0.0

0.0

0.8

4.6

Sustainability report
Corporate governance

Financial information

Dec 31, 2022, SEK bn

Hedgesof foreign
currency2

SEK

Total

3.8

3.8

1.8

7.8

AssetsInvestment Properties

Shares and participations

1.5

0.0

0.2

0.1

0.1

0.0

0.0

0.0

1.1

2.9

Financial analysis

Interest-bearing receivables

33.0

4.3

3.7

6.3

2.7

1.8

0.0

-42.8

8.9

17.9

Financial statements

Current-asset properties

13.3

4.6

14.9

4.1

1.8

1.8

2.4

0.0

15.5

58.5

Notes

Current-asset properties, right-of-use
assets

2.5

0.0

0.5

0.0

0.0

0.1

0.0

0.0

0.5

3.7

Non-interest-bearing receivables

19.6

4.6

2.9

4.8

1.9

0.7

0.0

0.0

4.5

39.1

Auditor’s report
Auditor’s review report of the sustainability report

Cash and cash equivalents

Quarterly information

Total

1.3

0.1

0.0

0.1

0.1

0.0

0.0

0.0

8.4

10.0

74.4

16.4

23.5

19.6

7.5

4.5

2.5

-42.8

0.0

45.9

151.6

-0.1

26.7

55.1

Share data
Annual General Meeting
Investors’ calendar and addresses

Equity and liabilities
Equity attributable to equity holders3

11.9

1.6

4.5

5.7

3.3

0.4

1.0

0.1

Non-controlling interests

0.0

0.0

0.0

0.0

0.1

0.0

0.0

0.0

Interest-bearing liabilities

29.8

6.6

12.0

3.4

0.5

1.6

1.3

-42.9

Non-interest-bearing liabilities

32.6

8.2

6.9

10.6

3.6

2.5

0.2

0.1

Total

74.4

16.4

23.5

19.6

7.5

4.5

2.5

-42.8

0.0

0.1

0.1

5.2

17.6

14.1

78.7

0.0

45.9

151.6

1 Including elimination of intra-Group receivables and liabilities.
2 Amount refers to hedges before tax deduction. Net investments abroad are currency-hedged to a certain extent through foreign currency loans and currency forwards. See also Note 6. Hedging of net investments through foreign currency loans, mainly in GBP, amounts to SEK 90 M.
3 The respective currencies are calculated including consolidated goodwill and the net amount of Group surpluses after deducting deferred taxes.

Effect on the Group of a change in SEK against other currencies and change in USD against SEK
The following sensitivity analysis, based on the 2023 income statement and statement of financial position, shows thesensitivity of the Group to a unilateral 10-percent change in SEK against all currencies, as well as a unilateral 10-percent
change in USD against SEK (+ indicates a weakening of SEK, - indicates a strengthening of SEK).

SEK bnAll currencies+/-10%

Revenue+/-13.5+/-7.6

Operating income+/-0.2+/-0.4Equity+/-2.7+/-1.4

Net receivables/net liabilities+/-0.5+/-0.3Other
For information on the change in the translation reserve in Equity, see Note 26.

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USD +/-10%

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Annual and Sustainability Report 2023

Note 35. Cash flow statement
Aside from the cash flow statement prepared in accordance with IAS 7 Statement of Cash Flows, Skanska prepares acash flow statement based on the operations carried out by the respective business streams. This cash flow statement iscalled the Consolidated operating cash flow statement.
Changes in the consolidated cash flow statements
As a result of a review of the consolidated cash flow statements, changes have been made to the presentation andclassification of items in the consolidated cash flow statements from the fourth quarter of 2023. The cash flow statement
pursuant to IAS 7 and the consolidated operating cash flow statement have both been amended and comparative
periods restated.
The consolidated cash flow statement pursuant to IAS 7 reports interest and dividends received under investing
activities, whereas previously, interest received was reported under financing activities and dividends received underoperating activities. All interest paid is reported under financing activities, including capitalized interest, which waspreviously reported under operating activities as change in working capital.
Taxes paid are only reported under operating activities, and are no longer reported under investing or financing
activities. The above entails a change to established practice in Sweden.
All taxes paid are reported under business operations in the consolidated operating cash flow statement and are nolonger reported under financing activities.
Adjustments for items not included in cash flow/items to be included in cash flow

Annual General Meeting
Investors’ calendar and addresses

178

2023

2022

Depreciation/amortization and impairment losses/reversals of impairment losses

5,554

2,789

Income from divestments of non-current assets and current-asset properties-4,067-5,674Gain/loss on divested Group companies/operations before deduction of selling
expenses

-14

-108

Income after financial items from joint ventures and associated companies

-524

-453

Provision for the year, intra-Group profits on contracting work

474

466

Pensions recognized as expenses but not related to payments

275

516

Pensions paid

-804

-768

Cost of Seop, employee ownership programs

470

471

Change in value, investment properties-175-1,692

Gain/loss on joint ventures divested

-838

-186

Other items that have not affected cash flow from operating activities
Total

2
351

-4,640Cash and cash equivalents
The same rule that was used to determine cash and cash equivalents in the statement of financial position has beenused to determine cash and cash equivalents according to the cash flow statement. Cash and cash equivalents in the
cash flow statement consist of cash and bank balances as well as short-term investments.
Dec 31, 2023

Dec 31, 2022

Cash and cash equivalents

17,912

10,014

Total

17,912

10,014Other
At year-end, the Group’s unutilized credit facilities amounted to SEK 9,866 M (6,053).

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Information about assets and liabilities in divested Group companies/operations
2023

2022

-1
-37
-5

-221

AssetsIntangible assets
Property, plant and equipment
Property, plant and equipment, right-of-use assets
Current-asset properties
Interest-bearing assets
Non-interest-bearing assets
Cash and cash equivalents
Total

-32
-13
-86

Liabilities
Gain/loss on divestments before deduction of selling expenses and exchange rate
differences
Non-controlling interests
Interest-bearing liabilities
Non-interest-bearing liabilities
Total

15
-5
-20
-25
-35

-507
-422

Consideration
Exchange rate differences
Cash and cash equivalents in divested companies
Effect on cash and cash equivalents, divestment

51
1
-13
39

219
-1
-21
197

-51
-348
-21
-641

85

Divested Group companies/operations resulted in a gain of SEK 6 M (86) after deduction of selling expenses andexchange rate differences. This is recognized under cost of sales.
Relationship between the consolidated cash flow statement according to IAS 7 and the consolidated operating
cash flow statement
The difference between the consolidated cash flow statement according to IAS 7 Statement of Cash Flows and theconsolidated operating cash flow statement is presented below.
The consolidated cash flow statement prepared in accordance with IAS 7 recognizes cash flow divided into:
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
The consolidated operating cash flow statement recognizes cash flow divided into:
Cash flow from business operations
Cash flow from financing activities
Cash flow from strategic investments
Dividend, etc.
Change in interest-bearing receivables and liabilities
The consolidated operating cash flow statement refers to Operating activities as Business operations. Unlike the cash flow
statement pursuant to IAS 7, Business operations also includes dividends received and net investments, which are regarded
as an element of business operations. Such net investments are net investments in shares, investment properties, property,
plant and equipment and intangible non-current assets, as well as net investments in the PPP portfolio.
Investments of a strategic nature are recognized under cash flow from strategic investments.
Under cash flow from financing activities, the operating cash flow statement recognizes only interest and other financial
items. Dividends are recognized separately. Loans provided and repayment of loans are also recognized separately
along with changes in interest-bearing receivables at the bottom of the operating cash flow statement, resulting in a
subtotal in that statement that shows cash flow before changes in interest-bearing receivables and liabilities.

Contents

Group overview
Operations

Annual and Sustainability Report 2023

179

Note 35. Cash flow statement, cont.

Cash flow for the year

Sustainability report

2023

2022

1,837

-1,699Corporate governanceCash flow from business operations including taxes paid according to operating
cash flow

Remuneration reportLess net investments in shares, property, plant and equipment, and intangible assets(including investment properties)

Risk and opportunity management

836

Less accrual adjustments in investments/divestments of shares, property, plant andequipment, and intangible assets (including investment properties)

580

Financial information
Financial analysis

Less capitalized interest paid and dividends received from joint ventures andassociated companies

Financial statements

Cash flow from operating activities, according to IAS 7

Notes

Cash flow from strategic net divestments (+)/investments (-) according to operating
cash flow

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

Net investments in shares, property, plant and equipment and intangible assets(including investment properties)

Investments/divestments

2,266

-46

-58

3,207

510

39

197

-836

-2,266

Share data

Accrual adjustments in investments/divestments of shares, property, plant andequipment, and intangible assets (including investment properties)-580

Annual General Meeting

Interest and dividends received

1,485

890

Increase and decrease in interest-bearing receivables

5,888

6,026

Cash flow from investing activities, according to IAS 7

5,997

4,847

Cash flow from financing activities according to operating cash flow

-689

-565

Capitalized interest paid

-727

-446

Investors’ calendar and addresses

Interest and dividends received

Operations – Investments
Investment properties
Intangible assets
Property, plant and equipment
SharesCurrent-asset propertiesof which Residential Developmentof which Commercial Property Development
Operations – Divestments
Investment properties
Intangible assets
Property, plant and equipment
SharesCurrent-asset propertiesof which Residential Developmentof which Commercial Property Development

Net divestments (+)/investments (-) in operations

2023

2022

-26
-20
-2,575-318-19,249-8,655-10,595-1-24-2,238-696-22,609-10,375-12,233-22,189-25,567

1
477
1,626
17,871
11,4306,441
19,97515476
201
19,844
9,257
10,587
20,537-2,214-5,030-712-386Strategic divestments

Change in interest-bearing receivables and liabilities excluding lease liabilities

10,373

5,538

Divestment of businesses

39

197

Less increase and decrease in interest-bearing receivables-5,888-6,026Strategic divestments

39

197

-2,175-4,833

Dividend, etc.1-3,611-4,645

Cash flow from financing activities, according to IAS 7-1,255-6,530Cash flow for the year

7,949

-1,173-510-507

1 Of which repurchases of Class B shares.

Relationship between the Group’s investments in the cash flow statement according to IAS 7 and investments in the
consolidated operating cash flow statement
Total net investments are recognized in the cash flow statement divided into operating activities and investing activities,
taking into account the settlement of payments for investments and divestments.
Purchases and sales of current-asset properties are recognized under operating activities, while other net investments
are recognized under investing activities.

Total net divestments (+)/investments (-)
Change in interest-bearing liabilities pertaining to financing activities

2023

2022

January 1

14,69914,997

Items affecting cash flow from financing activities

2,185

-181

Divestment of Group companies-15

Other change in leases

957

Reclassification

-48

45

69

-978

17,846

14,6992023

2022

Exchange rate differences

Net investments in operating activities1-1,203-2,296

December 31

Net investments in investing activities-1,377-2,069-2,580-4,365Less accrual adjustments, cash flow effect of investments

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The consolidated operating cash flow statement recognizes net investments divided into net investments in operations
and strategic net investments as follows.

Total net divestments (+)/investments (-)
1 Of which SEK -727 M (-446) comprised capitalized interest, which is included in interest paid.

405

-468

-2,175-4,833817

Contents

Annual and Sustainability Report 2023

180

Group overview

Note 36. Personnel

Operations

Wages, salaries, other remuneration and social insurance contributions

Men and women on Boards of Directors and executive teams of all Group companies on the closing day

Sustainability report
Corporate governanceDec 31, 2023
Wages, salaries and other remuneration
Board members, CEOs, Executive Vice Presidents and other executive teammembers1, 2

Proportion of board members

69

31

70

30

22,564

Proportion of CEOs and other members ofexecutive teams

71

29

70

30

6,127

6,045

1,019

994

Other
No loans, assets pledged or contingent liabilities have been provided for the benefit of any board member or CEO within
the Group.

567

612

23,214

21,952

Risk and opportunity management

Total wages, salaries and other remuneration

23,781

Financial information

Social insurance contributions including pension expenses
Non-monetary remuneration4

3

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Dec 31, 2022

of which women,of which women,of which men, %% of which men, %%Other employees

Remuneration report

Dec 31, 2023

Dec 31, 2022

Share-based payments
Total

470

471

31,39730,074

1 This amount is for the Boards of Directors, CEOs, Executive Vice Presidents and other executive team members in all Group companies.
The amount includes remuneration to former board members, CEOs and Executive Vice Presidents.
2 Of which SEK 154 M (235) in variable remuneration.
3 O f which SEK 2,312 M (2,513) in pension expenses. Of the Group’s total pension expenses, SEK 82 M (82) relates to board members, CEOs,
Executive Vice Presidents and other executive team members in all Group companies. The amount includes pension expenses for former
board members, CEOs and Executive Vice Presidents.
4 The item Non-monetary remuneration includes health insurance expenses.

Average number of employees
Personnel is calculated as the average number of employees. See Note 1.
Swedenof which men% of which women

%

2022

of which men% of which women

%

7,750

5,838

75

1,912

25

7,937

5,986

75

1,951

25
10

Norway

4,177

3,710

89

467

11

4,004

3,607

90

397

Finland

1,730

1,409

81

321

19

2,082

1,707

82

375

18

UK

3,424

2,508

73

916

27

3,500

2,562

73

938

27
37

Poland

1,363

850

62

514

38

1,534

969

63

565

Czechia

2,067

1,713

83

355

17

2,123

1,775

84

349

16

Slovakia

614

543

88

71

12

641

575

90

66

10

6,033

4,885

81

1,148

19

6,440

5,270

82

1,170

18

98

58

60

39

40

119

74

62

45

38

27,256

21,513

79

5,743

21

28,38022,524

79

5,856

21

USA
Other countries
Total
The number of employees at the end of the year was 26,543 (27,666).

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2023

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 37. Remuneration to senior executives and board members
Senior executives include the President and CEO and the other members of the Group Leadership Team. The Group
Leadership Team consisted at the end of 2023 of eight persons, including the President and CEO, of which three womenand five men. Information on the President and CEO and the other members of the Group Leadership Team can be foundon pages 92–93.
Preparation and decision-making processes
The Board of Directors’ (the Board) Compensation Committee prepares the Board’s proposals for resolution by the
Annual General Meeting (AGM) on guidelines for salary and other remuneration to senior executives (the Remuneration
Guidelines) when significant modifications of the guidelines become necessary, however at least every fourth year.
Salary, variable remuneration and other benefits for the President and CEO are established by the Board following
proposals from the Compensation Committee. The Compensation Committee sets salaries, variable remunerationand other benefits for the other members of the Group Leadership Team. The President and CEO regularly informs theCompensation Committee about salaries, variable remuneration and other benefits of the heads of group functions
and business units. In 2023 the Compensation Committee consisted of the Chairman of the Board, Hans Biörck, and theboard members Pär Boman and Jan Gurander. In 2023, the Compensation Committee held six meetings, of which one
was per capsulam (i.e., resolutions were taken by unanimous written consent). The AGM resolves on board fees and fees
for work in the committees of the Board following proposals submitted by the Nomination Committee.
Guidelines for salary and other remuneration to senior executives
The AGM 2023 adopted the Board’s proposal on guidelines for salary and other remuneration to senior executives.
The guidelines are forward-looking, i.e. they are applicable to remuneration agreed, and amendments to remuneration
already agreed, after adoption of the guidelines by the AGM 2023. The guidelines do not apply to any remuneration
decided by the AGM, including any long-term share related incentive plans.
The guidelines’ promotion of the Company’s business strategy, long-term interests and sustainability
A prerequisite for the successful implementation of the Company’s business strategy and safeguarding of its long-term
interests, including its sustainability agenda, is that the Company is able to recruit and retain qualified personnel. To thisend, it is necessary that the Company offers competitive remuneration. These guidelines enable the Company to offer
the senior executives a competitive total remuneration.
Variable cash remuneration covered by these guidelines shall aim at promoting the Company’s business strategy andlong-term interests, including its sustainability agenda. This is accomplished through the financial and non-financial
targets that determines the outcome of the variable cash remuneration and are clearly linked to the Company’s businessstrategy and sustainability agenda. The variable cash remuneration is further described in the section “Variable cash
remuneration” below.
The Company’s objectives for having a variable cash remuneration program and a long-term share related incentive
plan are to (i) drive behaviors that will support the Company’s long and short-term business success and createshareholder value, (ii) make the Company attractive as an employer for top talents, (iii) retain key individuals within the
Company, and (iv) increase employees’ interest and involvement in the Company’s business and development.
For information regarding the Company’s business strategy, see the Company’s website: www.group.skanska.com/
about-us/how-we-work/strategy/.
Total remuneration
The combined remuneration for each senior executive shall be market-related and competitive in the labor market inwhich the senior executive is placed, and distinguished performance should be reflected in the total remuneration. The
remuneration may consist of the following components: fixed cash salary, variable cash remuneration, pension andother benefits. Additionally, the General Meeting may – irrespective of these guidelines – resolve on, among other things,
share-related or share price-related remuneration. Fixed salary and variable remuneration shall be related to the senior
executive’s responsibility and authority.

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181

Variable cash remuneration
The satisfaction of criteria for awarding variable cash remuneration shall be measured over a period of one or several
years. The variable cash remuneration shall be capped and related to the fixed salary, and may amount to not more than
100 percent of the fixed annual cash salary.
The variable cash remuneration shall take into account both financial and non-financial performance. The outcome inrelation to predetermined and measurable financial targets shall determine the total (financial) bonus potential, i.e. thefinancial targets shall be the basis of the total bonus potential. This outcome may be reduced depending on the outcomesof the non-financial targets. The variable cash remuneration must be based on results in relation to established targets
and be designed to increase the alignment between the shareholders and senior executives of the Company.
The financial targets for the variable cash remuneration may be related to the Group’s earnings before taxes, to relevantbusiness unit’s earnings before interest and taxes, etc.
The non-financial targets shall be set to support the Company’s business strategy and long-term interests, including its
sustainability agenda, by for example being clearly linked to the Company’s business strategy or sustainability agenda.
The non-financial targets should together represent 50 percent of the total bonus which means that the total bonus
outcome may be reduced with up to 50 percent if the non-financial targets are not met.
To which extent the criteria for awarding variable cash remuneration has been satisfied shall be evaluated/determinedwhen the measurement period has ended. The Board is responsible for the evaluation so far as it concerns variable cash
remuneration to the CEO. For variable cash remuneration to other senior executives, the Compensation Committee is
responsible for the evaluation. For financial objectives, the evaluation shall be based on the latest financial information
made public by the Company.
The terms for variable cash remuneration shall be structured so that the Board, if exceptional economic conditions
prevail, has the possibility to limit or refrain from paying variable remuneration, if such payment is consideredunreasonable and incompatible with the Company’s responsibility in general to the shareholders, employees and otherstakeholders. There shall also be a possibility to limit or refrain from paying variable remuneration if the Board considers
that this is appropriate for other reasons. Further, the Board shall have the possibility to reclaim paid out variable cash
remuneration if it is discovered after the payment that the senior executive has violated Skanska’s Code of Conduct orother Skanska values, policies, standards or procedures.
Further variable cash remuneration may be awarded in extraordinary circumstances, provided that such extraordinaryarrangements are limited in time and only made on an individual basis, either for the purpose of recruiting or retaining
senior executives, or as remuneration for extraordinary performance beyond the individual’s ordinary tasks. Such
remuneration may not exceed an amount corresponding to 100 percent of the fixed annual cash salary and may not be
paid more than once each year per individual. Any resolution on such remuneration for the CEO shall be made by the
Board based on a proposal from the Compensation Committee. Any resolution on such remuneration for other senior
executives shall be made by the Compensation Committee based on a proposal from the CEO.
PensionPension benefits shall be defined-contribution schemes except where law or collective agreement require a definedbenefit pension. Variable cash remuneration shall not qualify for pension benefits, except when it follows under law orcollective agreement. The pension premiums for defined-contribution pension shall amount to not more than 40 percentof the fixed annual cash salary unless a higher percentage results from the application of law or collective agreement.
Other benefits
Other benefits may include, for example, medical insurance (Sw: sjukvårdsförsäkring), health insurance (Sw.
sjukförsäkring), double accommodation, home travel, tax compensation, parking and company cars. Such benefits may
amount to not more than 20 percent of the fixed annual cash salary.
For employments governed by rules other than Swedish rules, pension benefits and other benefits may be duly adjusted
for compliance with mandatory rules or established local practice, taking into account, to the extent possible, the overallpurpose of these guidelines.
Senior executives who are expatriates, i.e. based in another country than their home country, may receive additional
remuneration and other benefits to the extent reasonable in light of the special circumstances associated with the expat
arrangement, taking into account, to the extent possible, the overall purpose of these guidelines. Such benefits may not
in total exceed 50 percent of the fixed annual cash salary.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Annual and Sustainability Report 2023

182

Note 37. Remuneration to senior executives and board members, cont.

Long-term share saving programsLong-term share saving programs, Skanska Employee Ownership Programs (Seop 5 and Seop 6) have been implemented in
the Company. Such plans have been resolved by the General Meeting and are therefore excluded from these guidelines. New
plans may also be resolved by the General Meeting. Seop 5 and Seop 6 give present and future employees the opportunityof becoming shareholders of Skanska and include permanent employees in the Skanska Group. The performance criteria
used to assess the outcome of the plans are clearly linked to the business strategy and thereby to the Company’s long term
value creation, including its sustainability agenda. The performance criteria consist of financial targets at Group, Business
Unit and/or Business Unit Cluster level and as of Seop 6, also a non-financial target at Group level, related to the Group’s
reduction of carbon emissions. At present, the financial target applicable at Group level is growth in earning per share (EPS).
The financial targets applicable at Business Unit and/or Business Unit level vary depending on which business stream therelevant Business Unit or Business Unit Cluster belongs to, as set out in the table below.

Financial analysis
Financial statements

Construction

Residential development

Commercial property development

Investment Properties

Notes

EBIT1

EBIT1

EBIT1

EBIT1

ROCE2

Leasing square meters

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

1 Earnings before interest and taxes.
2 Return on capital employed.

Seop 5 and Seop 6 are further conditional upon the participant’s own investment and three-year holding andemployment period. For more information on Seop 5 and Seop 6, including the criteria which the outcome depends on,please see the Company’s website: www.group.skanska.com/corporate-governance/remuneration/incentive-programs/.
Termination of employment
In the event of employment termination by the Company, the normal period of notice is six months, combined withseverance pay corresponding to a maximum of 18 months fixed cash salary, or, alternatively, a period of notice of
maximum 12 months, combined with severance pay corresponding to a maximum of 12 months fixed cash salary.
Fixed cash salary during the notice period and severance pay may not together exceed an amount corresponding
to the fixed cash salary for two years. When termination is made by the senior executive, the notice period may notexceed 12 months, without any right to severance pay.
Remuneration to board members in addition to board fees
To the extent that a non-employed board member elected by the General Meeting performs work for the Company,
besides the board membership, consultant fee and other remuneration may be granted for such work. Decisions on
consultant fees and other remuneration to non-employed board members elected by the General Meeting are madeby the Compensation Committee.
Salary and employment conditions for employees
In the preparation of the Board’s proposal for these Remuneration Guidelines, salary and employment conditions for
employees of the Company have been taken into account by including information on the employees’ total income, thecomponents of the remuneration and increase and growth rate over time, in the Compensation Committee’s and theBoard’s basis of decision when evaluating whether the guidelines and the limitations set out herein are reasonable.

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The decision-making process to determine, review and implement the guidelines
The Board has established a Compensation Committee. The Compensation Committee’s tasks include preparing theBoard’s decision to propose guidelines for salary and other remuneration to senior executives. The Board shall prepare
a proposal for new guidelines at least every fourth year and submit it to the General Meeting. The guidelines shall be inforce until new guidelines are adopted by the General Meeting. The Compensation Committee shall also monitor andevaluate programs for variable remuneration for the senior executives, the application of the guidelines for salary andother remuneration to senior executives as well as the current remuneration structures and compensation levels in the
Company. The members of the Compensation Committee are independent of the Company and its senior executives.
The CEO and other members of the senior executives do not participate in the Board’s processing of and resolutions
regarding remuneration related matters in so far as they are affected by such matters.

Derogation from the guidelines
The Board may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is
special cause for the derogation and a derogation is necessary to serve the Company’s long-term interests, including its
sustainability agenda, or to ensure the Company’s financial viability. As set out above, the Compensation Committee’stasks include preparing the Board’s resolutions in remuneration-related matters. This includes any resolutions toderogate from the guidelines.
Description of significant changes compared to the previous guidelines
Pension premiums have previously been restricted to 35 percent of the fixed annual cash salary for the CEO and to30 percent of the fixed annual cash salary together with up to 30 percent on variable cash remuneration for other senior
executives. These guidelines have been changed to a single restriction of 40 percent of the fixed annual cash salary whichapplies to all senior executives in order to align the cap for pension premiums with prevailing Swedish market practice.
The cap for other benefits has been increased from 15 percent to 20 percent of the fixed annual cash salary. This change
has been made to ensure that any senior executives that require for example double accommodation and home travels
can be granted such benefits within the limits of these guidelines.
The only further changes are editorial changes primarily following from the implementation of Seop 6.
The shareholders have not expressed any specific views on the guidelines adopted by the Annual General Meeting 2020.
Until the close of the 2023 AGM, the Remuneration Guidelines adopted by the 2020 AGM applied, which areavailable on the Company’s website: www.group.skanska.com/corporate-governance/shareholders-meeting/archive-shareholders-meetings/.
Targets and performance related to variable remuneration
Variable remuneration consist of two parts: annual variable cash remuneration and long-term share programs, which
provides compensation in the form of shares. The long-term share programs are described in the sections under theheadings “Long-term share programs” and “Previous long-term share programs” in this note.
The table on page 183 presents, by business stream, the starting point, outperform and outcome for the financial targets
for the 2023 variable cash remuneration. In addition to the financial targets, the members of the Group Leadership Team
have non-financial targets that may reduce the outcome measured only according to the financial targets. The nonfinancial targets are set to support the Company’s business strategy and long-term interests, including its sustainability
agenda, by for example being linked to the business strategy or sustainability agenda. The outcome is reduced in cases
where the non-financial targets have not been reached.
Annual variable cash remuneration for the Group Leadership Team, excluding the President and CEO, is based on theGroup targets and/or on the business units they are directly responsible for. The preliminary outcome for other members of
the Group Leadership Team averaged 20 percent (76) of fixed salary. The Board will determine the final outcome of variable
cash remuneration after reviewing the operational performance in the first quarter of 2024. The calculation is further
preliminary insofar as any deductions as a consequence of the non-financial targets have not yet been taken into account.
Targets and performance related to variable cash remuneration for the President and CEO
For the President and CEO, the variable cash remuneration is maximized at 75 percent of fixed salary. The financial
targets were the same as the Group targets presented in the table on page 183. The Board has the option of reducing
the final outcome of variable cash remuneration measured solely on the financial targets by a maximum of 50 percent,based on the outcome of the non-financial targets. The preliminary outcome for the President and CEO’s variable cash
remuneration (i.e., excluding the share saving program) shows an outcome of 0 percent (75) of fixed salary, based on
financial targets with a preliminary target fulfillment of 0 percent (100). The Board will determine the final outcome after
reviewing the operational performance in the first quarter of 2024.

Contents

Group overview
Operations

Annual and Sustainability Report 2023

183

Note 37. Remuneration to senior executives and board members, cont.

Financial targets for variable cash remuneration 2023

Sustainability report

Starting point

Outperform

Outcome

Corporate governanceGroup

Remuneration report

Income after financial items,
SEK bn1

5.8

8.2

2.6

0%

Construction

Operating income, SEK bn

4.2

5.8

5.6

64%

Operating margin, %

2.8

3.6

3.5

62%

Operating income, SEK bn

0.6

1.2

-1.1

17%

5

9

-8

17%

Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

Measures

Percentage
fulfilled2

Residential
Development
Commercial
Property
Development

Return on capital employed, %Units sold, thousands

1.3

2.7

1.1

23%

Operating income, SEK bn

0.7

2.0

-1.4

0%

Operating income cluster,SEK bn3

0.6

1.8

-1.4

0%

Auditor’s report

Return on capital employed, %3

6

9

0

0%

Auditor’s review report of the sustainability report

Leasing, thousands of sq m3

39

268

195

56%

Operating income, SEK bn

0.2

0.2

-0.1

0%

Leasing, thousands of sq m

1

4

5

100%

Quarterly information

Investment
Properties

Share data
Annual General Meeting
Investors’ calendar and addresses

1 The income excludes the operating unit Asset Management (portfolio of PPP-assets).
2 Percentage fulfilled is based on the outcomes for the respective business units, which are weighed together. As the fulfillment per business
unit cannot be less than 0 percent or more than 100 percent, outcome below the starting point and/or above the outperform for thebusiness units may affect the comparison with the business stream’s total outcome.
3 Encompasses the Commercial Property Development business units in the Nordic region, Europe and USA.

Pension benefits
The President and CEO is covered by an individual occupational pension insurance plan. The occupational pension
insurance plan is a defined-contribution plan and the total premiums for the occupational pension insurance planamount to 35 percent of the fixed salary. Other members of the Group Leadership Team in Sweden are entitled to pension
benefits according to the ITP occupational pension plan and as of April 1, 2023 a supplementary defined-contribution
occupational pension plan. The total old-age pension premiums amount to 35 percent of the fixed salary. The retirement
age for members of the Group Leadership Team in Sweden is 65 years. Other members of the Group Leadership Teamoutside Sweden are covered by local pension plans.
Severance pay
A mutual notice period of 12 months applies between Skanska and the President and CEO, with retention of fixed salaryand benefits, excluding variable cash remuneration. After the notice period, in the event of employment termination by theCompany, severance pay is ­disbursed for 12 months. Other income must normally be deducted from the severance pay.
A mutual notice period of 6 months applies between Skanska and the other members of the Group Leadership Team,with retention of fixed salary and benefits, excluding variable cash remuneration. After the notice period, in the event of
employment termination by the Company, severance pay is disbursed for 12 to 18 months. Other income must normally
be deducted from the severance pay.
Remuneration and benefits expensed in 2023
Board fees
The AGM 2023 resolved, in accordance with the Nomination Committee’s proposal, that fees to the Chairman of theBoard and to the other board members elected by the AGM not employed by Skanska should be paid in the total amountof SEK 10,750 thousand (10,435) including fees for work in the committees of the Board. For more detailed information on
board fees, see table below.
Chairman of the Board
The Chairman of the Board, Hans Biörck, received board fees totaling SEK 2,860 thousand (2,775), of which
SEK 535 thousand (525) was for committee work.

Board of Directors
Director’s fee
SEK thousands

Audit Committee

Compensation Committee

Project Review Committee

Total fees

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2,325

2,250

195

190

115

115

225

220

2,860

2,775

Fredrik Lundberg

775

750

0

0

0

0

225

220

1,000

970

Pär Boman

775

750

280

270

110

110

225

220

1,390

1,350

Catherine Marcus

775

750

0

0

0

0

225

220

1,000

970

Jan Gurander

775

750

195

190

110

110

225

220

1,305

1,270

Åsa Söderström Winberg

775

750

195

190

0

0

225

220

1,195

1,160

Mats Hederos

775

750

0

0

0

0

225

220

1,000

970

Ann E. Massey

775

750

0

0

0

0

225

220

1,000

970

7,750

7,500

865

840

335

335

1,800

1,760

10,75010,435Chairman of the Board
Hans Biörck
Other board members

Total

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Contents

Group overview

Annual and Sustainability Report 2023

184

Note 37. Remuneration to senior executives and board members, cont.

Operations
Sustainability report

Group Leadership Team
Base salary

Variable cash renumeration1

Awarded value, share saving
programs2

Other remuneration
and benefits

Pension expense

Total remuneration

Corporate governance

SEK thousands

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Remuneration report

President and CEO
Anders Danielsson

14,25013,7500

10,313

1,087

7,756

133

126

4,988

4,812

20,45836,757

Risk and opportunity management

Other members of the Group Leadership Team
(7 individuals)342,95136,501

8,716

27,692

2,250

20,315

1,265

1,398

13,851

11,077

69,03396,983Financial information

Total

57,20150,251

8,716

38,005

3,338

28,071

1,398

1,525

18,83915,89089,491

133,740

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

1 Variable cash remuneration relating to the 2023 financial year is preliminary and will be finally determined and disbursed after reviewing the operational performance in the first quarter of 2024. The variable cash remuneration agreements include a general clause stipulating that theBoard and the Compensation Committee are entitled to wholly or partly reduce variable cash remuneration. The amounts included under the heading “Variable cash remuneration” for 2022 in the table above refer to actual disbursements for the 2022 financial year.
2 The value stated for 2023 refers to preliminary awards of performance shares for 2023’s invested saving shares, calculated based on the share price on December 29, 2023 (SEK 182.35). The estimated number of performance shares for 2023, calculated based on the outcome ofthe performance conditions, has been reduced as a consequence of the cost limits of the share saving program. The value stated refers to the preliminary number of performance shares after this reduction. The Board will determine the final outcome for 2023 after reviewing theoperational performance in the first quarter of 2024. In order to receive performance shares, an additional three years of service are required. The total cost has not yet been expensed as the cost is distributed over three years in accordance with IFRS 2, see the section under theheading “Long-term share programs” on page 185. See table ”Skanska Employee Ownership Program - Group Leadership Team” below for an overview of invested, preliminary awarded and vested shares for the President and CEO and other members of the Group Leadership Team.
3 During 2022, other members of the Group Leadership Team consisted of six individuals.

Skanska Employee Ownership Program - Group Leadership Team
Number ofsaving shares acquired1
Number of shares and value of shares SEK

Value ofsaving shares acquired2

Number ofshare awards3

Value ofshare awards4

Number ofshares vested5

Value ofshares vested6

thousands

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

President and CEO
Anders Danielsson

8,560

7,834

1,561

1,293

5,963

47,004

1,087

7,756

38,27737,741

6,980

6,227

Other members of the Group Leadership Team
(7 individuals)7

17,714

20,912

3,230

3,450

12,340123,120

2,250

20,315

97,144

91,343

17,714

15,072

Total

26,27528,746

4,791

4,743

18,303

170,124

3,338

28,071

135,421129,084

24,694

21,2991 The number of saving shares the President and CEO and the other members of the Group Leadership Team have invested in for the financial year.
2 The value stated for 2023 refers to invested saving shares for the 2023 financial year, calculated based on the share price on December 29, 2023 (SEK 182.35).
3 The number of future performance shares awarded to the President and CEO and the other members of the Group Leadership Team relating to the invested saving shares for the financial year. The number of performance shares relating to the 2023 financial year is preliminary. The
estimated number of performance shares for 2023, calculated based on the outcome of the performance conditions (which preliminarily is 15 percent for 2023 before reduction), has been reduced as a consequence of the cost limits of the share saving program. The number of shares
stated refer to the preliminary number of performance shares after this reduction. The Board will determine the final outcome for 2023 after reviewing the operational performance in the first quarter of 2024. In order to receive performance shares, an additional three years of service
are required.
4 The value stated for 2023 refers to preliminary awards of performance shares for 2023’s invested saving shares, calculated based on the share price on December 29, 2023 (SEK 182.35).
5 The number of shares the President and CEO and the other members of the Group Leadership Team, after a three-year lock-up period, have received as part of the previous share saving programs Seop 4 and Seop 5.
6 The value stated for 2023 refers to vested shares awarded for the 2020 financial year, calculated based on the share price on December 29, 2023 (SEK 182.35).
7 During 2022, other members of the Group Leadership Team consisted of six individuals.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Note 37. Remuneration to senior executives and board members, cont.

Board members
Members of the Board did not receive any remuneration for their role as board members beyond their regular directors’fees and fees for committee work. For board members appointed by the employees, no disclosures are made concerningsalaries and remuneration or pensions as they do not receive these in their capacity as board members. For board
members who were employees of the company before the beginning of the financial year, disclosures are madeconcerning pension obligations in their former role as employees.
President and CEO
Remuneration to the President and CEO, Anders Danielsson, is presented in the table ”Group Leadership Team” onpage 184. The President and CEO is participating in the Group’s ongoing share saving program, Seop 6, which involves
allotment of performance shares, see the section under the heading “Long-term share programs” in this note and thetable ”Skanska Employee Ownership Program - Group Leadership Team” on page 184.
Other members of the Group Leadership TeamAt the end of 2023 the other members of the Group Leadership Team consisted of seven individuals. Remuneration to theother members of the Group Leadership Team is presented in the table ”Group Leadership Team” on page 184. The othermembers of the Group Leadership Team are covered by the Group’s ongoing share saving program, Seop 6, involving
allotment of performance shares, see the section under the heading “Long-term share programs” in this note and thetable ”Skanska Employee Ownership Program - Group Leadership Team” on page 184.
All remuneration and benefits in the table ”Group Leadership Team” on page 184 is charged to Skanska AB, except
for SEK 20,880 thousand (31,961) for other members of the Group Leadership Team, which is charged to other Group
companies.
Pension obligations to current and former senior executives
Outstanding pension obligations in 2023 for the President and CEO and former CEOs amount to SEK 135,056 thousand(135,557). Outstanding obligations to other current and former members of the Group Leadership Team amountto SEK 97,922 thousand (102,001).
Long-term share programs
Share saving program – Skanska Employee Ownership Program, Seop 6 (2023–2025)
The AGM on 2022 resolved, in accordance with the Board’s proposal, on a long-term share saving program for thefinancial years 2023, 2024 and 2025 (Seop 6) for permanent employees of the Group. Seop 6 is essentially an extensionof the previous share saving program Seop 5 that ran from 2020 to 2022. The terms and conditions are the same in allmaterial respects as those of the previous program Seop 5. However, to further emphasize Skanska’s sustainability
focus, the earnings per share target at Group level has been supplemented with a climate target at Group level linked to
the Group’s reduction of carbon emissions, in line with Skanska’s long-term climate target.
The program is aimed at about 27,000 permanent employees of the Skanska Group, of whom approximately 2,000
are key employees and about 300 are executives, including the President and CEO and other members of the Group
Leadership Team.
The program offers employees, key employees and executives the opportunity – provided they have made their own
investment in Skanska Class B shares during a given financial year (saving shares) – to receive Skanska Class B sharesfrom Skanska free of charge. For each four Skanska Class B shares purchased, the employees and key employees will
be entitled, after a three-year lock-up period, to receive one Skanska Class B share free of charge (matching share). In
addition, after the lock-up period, employees, key employees and executives will be able to receive additional Skanska
Class B shares free of charge conditional upon the fulfillment of certain performance conditions during the acquisition
period (performance shares).

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185

The acquisition period covers the years 2023–2025 and the lock-up period runs for three years from the month in which
the saving share is acquired. For each four saving shares purchased, employees may, in addition to one matching share,
receive a maximum of three performance shares. For each four saving shares, key employees may, in addition to one
matching share, receive a maximum of seven performance shares. For each four saving shares, executives (split into threesubcategories) may receive a maximum of 16, 20 or 24 performance shares. The maximum number of saving shares thateach employee participating in the program may acquire, through monthly saving, depends on the employee’s salary andwhether the employee is participating in the program as an employee, a key employee or an executive.
To qualify to receive matching- and/or performance shares, a participant must be employed within the Group throughout
the lock-up period and must have retained their saving shares during this lock-up period.
The program has two cost limits. The first limit depends on the extent to which the financial target at Group level ismet, which limits ­Skanska’s total cost per year to SEK 230–850 M. The first cost limit is adjusted in accordance withthe consumer price index, with 2022 as the base year for Seop 6. The other cost limit is that Skanska’s total cost per
year may not exceed 15 percent of EBIT at the Group level. The actual cost limit will be the lower of these two cost limits.
In addition to the cost limits, the number of shares that may be transferred to participants as part of the three-year
program is also limited to 12,000,000 shares. A preliminary assessment of the outcome for 2023 shows that the first
cost limit is exceeded, which means that the allotment level will be preliminarily reduced proportionately for the program
participants. The outcome is finally established by the Board after reviewing the operational performance in the firstquarter of 2024.
The table on page 186 shows the preliminary Seop 6 target fulfillment in 2023 for each business stream. In the Skanska
Group, a total of around 39 percent (42) of permanent employees participated in Seop 6 in 2023.
The total cost, excluding social insurance contributions, related to Seop 6 for investments in 2023 is preliminarily
estimated to amount to SEK 238 M, of which SEK 47 M has been expensed in 2023. The remaining cost for Seop 6 up to
and including 2028 is estimated to SEK 191 M.
The dilution effect through 2023 of Seop 6 for the 2023 program is estimated at 147,327 shares or 0.04 percentof the number of Skanska Class B shares outstanding. Maximum dilution for the 2023 program is expected to be279,372 shares or 0.07 percent.
The number of issued shares will not change; instead the matching and performance shares will be distributed fromrepurchased shares. The repurchases will be evenly distributed over time. There will therefore be essentially no dilution
effect.
Previous long-term share programs
Share saving program – Skanska Employee Ownership Program, Seop 5 (2020–2022)
Shares for the previous share saving program, which ran from 2020 to 2022, were distributed in 2023. These were sharesthat were related to the 2020 financial year, which, after a three-year lock-up period, were distributed to those who had
been employed by the Group throughout the lock-up period and who had retained their saving shares during this lock-up
period.
The total cost, excluding social insurance contributions, for Seop 5 is estimated to amount to SEK 1,532 M, of which
SEK 768 M has been expensed in 2020–2022, while the cost for 2023 amounts to SEK 423 M. The remaining cost for
Seop 5 up to and including 2025 is estimated to SEK 341 M.
The dilution effect through 2023 of Seop 5 is estimated at 3,231,935 shares or 0.78 percent of the number of Skanska
Class B shares outstanding. Maximum dilution for the program at the end of the vesting period in 2025 is expected to be
5,255,757 shares or 1.26 percent.
Local remuneration
Salaries and other remuneration are established taking into account conditions prevailing in the rest of the constructionindustry and customary practices in each local market. The Skanska Group applies a remuneration model for the
relevant executives and managers that consists of a fixed salary plus variable remuneration based on financial targets
reached.

Contents

Group overview

Annual and Sustainability Report 2023

Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Note 38. Fees and other remuneration to auditors

Performance conditions for the share saving program, Seop 6, 20231

Operations
Sustainability report

186

MeasuresGroup

Earnings per share, SEK4

Starting point

Outperform/
Threshold level2

Outcome

Percentage
fulfilled3

19.5

20.5

7.8

0%

Carbon emissions (CO₂e),
thousands of tonnes5
Contruction

Operating income, SEK bn

Residential
Development

Operating income, SEK bn
Return on capital employed, %

169

161

100%

5.8

6.8

5.6

26%

1.2

1.6

-1.1

17%
47%

4

9

-22

Commercial Property Operating income, SEK bn
Development
Leasing, thousands of sqm 7

2.0

2.8

-1.4

0%

39

268

195

56%

Investment Properties Operating income, SEK bn

0.2

0.2

-0.1

0%

6

1 For further information, see the table “Financial targets for variable cash remuneration 2023” on page 183.
2 Carbon emissions are evaluated in relation to a threshold level instead of starting point and outperform.
3 Percentage fulfilled is based on the outcomes for the respective business units, which are weighed together. As the fulfillment per business
unit cannot be less than 0 percent or more than 100 percent, outcome below the starting point and/or above the outperform for thebusiness units may affect the comparison with the business stream’s total outcome.
4 Profit for the period attributable to equity holders divided by the average number of outstanding shares after dilution during the year.
5 Emissions within scope 1 and scope 2 (market based).
6 Encompasses the Residential Development business units in Central Europe and BoKlok.
7 Encompasses the Commercial Property Development business units in the Nordic region, Europe and USA.

EY

2023

2022

Audit assignments

81

67

Audit work in addition to the audit assignment2

2

Tax advisory services

3

3

Other services

1

1

Total

87

73

For the parent company, fees for audit assignments during the year amounted to SEK 7 M. Audit work in addition to theaudit assignment amounted to SEK 1 M and other assignments to SEK 1 M.
Audit assignments refers to the statutory audit of the annual accounts and accounting documents as well as of theadministration of the company by the Board of Directors and the CEO, and audit and other review work conductedaccording to agreements or contracts. This includes other tasks that are incumbent upon the company’s auditors aswell as advisory services or other assistance required as a result of observations made during such review work or thecompletion of such other tasks.
Other services refer to advisory services relating to accounting issues, advisory services concerning the divestment andacquisition of businesses, and advisory services relating to processes and internal control.

Note 39. Related party transaction disclosures
Disclosures on related parties, transactions with related parties and balances outstanding are provided according to IAS
24. For information on investments in Skanska’s joint ventures and associated companies, see Note 20 B. Transactions
with these related parties are reported below.
Transactions with joint ventures

2023

2022

Sales to joint ventures

440

675

Purchases from joint ventures

113

122

Interest income from joint ventures

93

128

Dividends from joint ventures

772

504

Receivables from joint ventures

49

106

No transactions were conducted by Skanska with its associated companies during the year or the comparative year.
For information on remuneration to senior executives and board members, see Note 37 and Note 62. Other than theinformation provided in Note 37 and Note 62, no transactions with natural persons that are related parties took place in2023.
Fredrik Lundberg, member of the parent company’s Board of Directors, has a controlling interest in the Lundberg
Group. In 2023, the parent company’s indirectly wholly owned subsidiary SMEBAB Daggros AB acquired a share of adevelopment property in Enköping for SEK 8 M from Fastighets AB L E Lundberg. Moreover, Lundberg Group engaged
Skanska for construction contracts valued at SEK 6 M (12). Sales for the year amounted to SEK 8 M (11) and the totalorder backlog on the closing day was SEK 0 M (2).
Skanska’s pension funds own 0 (0) shares in Skanska directly. There is an insignificant percentage of indirectly owned
shares via investments in various mutual funds. In 2023, Skanska Trean Allmän Pensionsstiftelse, through its wholly
owned subsidiary Skanska Hedmarksvegen Invest AB, and Skanska Norge Konsernpensjonskasse acquired
50 percent each of Skanska’s E10/rv. 85 road project in Norway for a total of SEK 36 M.

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Skanska has received reimbursements from the pension funds, and other services performed by Skanska were charged for.
For information on Skanska’s pension funds, see Note 28.
All transactions were completed on market terms.

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

187

Note 40. Investment properties
Investment properties are recognized in accordance with IAS 40 Investment Property and rental income associated withthem is recognized in accordance with IFRS 16 Leases. In cases where Skanska invoices tenants for services (non-lease
components), this revenue is recognized in accordance with IFRS 15. See also Note 1.

Remuneration report

Investment properties are properties that are owned for the purpose of generating rental income and capital
appreciation. Investment properties are recognized at fair value in accordance with IFRS 13, hierarchy level 3. The fairvalue is based on internal appraisals which are quality-assured through annual external appraisals. Changes in value
are recognized in profit or loss.

Risk and opportunity management

During the year, two properties were acquired internally (reclassification) and no properties were sold.

Financial information

Operating net

2023

2022

Rental income1

176

38

Corporate governance

Financial analysis

Summary of the internal appraisal on December 31, 2023 (December 31, 2022)
Calculation period
Normally 10 (10) years
Inflation assumption
Long-term inflation assumption of 2 (2) percent
Yield at the end of the calculation period
Varies between 4.6 (3.8) and 5.0 (4.2) percent
Assumed interest rate
Between 6.6 (5.8) and 7.0 (6.2) percent
Long-term vacancy rate
Individual assessment, normally around 5 (5) percent
The average yield requirement at the end of the calculation period was 4.5 (3.93) percent.
Change in carrying amount for investment properties
On December 31, 2023, the carrying amount for investment properties was SEK 5.1 billion.

Service income

103Total revenue

186

40

Auditor’s report

Operating costs

-22

-4

Change in value1

Auditor’s review report of the sustainability report

Repairs and maintenance-20Fair value, December 31

Financial statements
Notes

Quarterly information
Share data

Property administration-3-1

Property tax

-21

-5

Total expenses

-49

-10

Operating net

137

30

Surplus ratio, %74

75

Net leasing

16

0

Annual General Meeting
Investors’ calendar and addresses

1 For more information on operating leases, see Note 41 B. Skanska as lessor.

Property appraisals
Each quarter, internal appraisals are conducted for all properties based on a 10-year cash flow model. Property
appraisals are carried out individually by calculating the present value of future cash flows for 10 years as well as theresidual value in year 10.
Assumptions regarding rent, and operating and maintenance costs are derived from current and budgeted revenue andexpenses. Any changes in occupancy rates, rent, investment, and operating and maintenance costs are taken into account.
Rental income is expected to follow inflation due to indexation clauses in existing contracts. On contract expiry, anassessment is made of the current market rent. Vacancies are estimated based on the current vacancy rate, location andcondition of the property.
The cash flow calculations include a long-term inflation assumption of 2 percent, see table on the right. The market’s
yield requirements and assumed interest rates are based on analysis of comparable transactions in the property market.
Dialogs have also been conducted with advisors, authorized appraisal bodies and other relevant external sources suchas banks to be able to anchor the assumptions in the market appraisals in the current market with few comparable
transactions. The property’s geographical location and quality are taken into account and, accordingly, the yieldrequirement varies from property to property. All properties are appraised by an external authorized appraiser once eachyear for the purpose of assuring the quality of internal appraisals.
Fair value is an assessment of the most probable price that would be achieved through a sale in the open market.
Fair value can only be determined with certainty when a property is actually sold. Some deviations for individual
properties are assumed to offset each other in a property portfolio and, accordingly, an estimated reasonable
uncertainty range for the property portfolio is +/-5 percent.

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The internal appraisal on December 31, 2023 set the carrying amount for investment properties at SEK 5,141 M.
The internal appraisal dated December 31, 2023 arrived at a value that was 3.8 percent or SEK 197 M lower than theexternal appraisal.

2023
January 1

3,758

Investments/reclassifications

1,207

2022
2,066

175

1,692

5,141

3,758

1 O f which SEK 391 M (1,581) pertains to the difference between the properties’ fair value on the date of transfer (IAS 40) and their previous
carrying amount as current-asset properties (IAS 2).

Sensitivity analysis
The table below shows the effect on value of the property portfolio, based on changes in the parameters listed below:
Base value

Change inassumption

Change invalue, SEK M

Rental value

3,932+/-SEK 100/sq m+134/-132

Operating costs

350+/-SEK 25/sq m+43/-41

Long-term vacancy rate, %5.0+/-1 percentage point+51/-48

Average yield requirement, %4.5+/-0.5 percentage points+641/-509

Property portfolio on the closing day
Leasablearea, sq m2

Annual rental
value, SEK M

Economic
occupancy rate, %Environmental
certification, %Malmö38,543

134

92

100

Stockholm

42,962

187

91

100

81,505

321

91

100

Internal
appraisal, SEK M

Average external
appraisal, SEK M

Deviation, %Property type

Location

Offices
Offices
Total

Property investments/reclassifications carried out during the year
Property

Location

Hyllie Terrass

Malmö

739

779

-5.1

Sthlm 04

Stockholm

834

875

-4.6

Contents

Annual and Sustainability Report 2023

188

Group overview

Note 41. Leases

Operations

Leases are managed in accordance with IFRS 16 Leases. See Note 1.

Sustainability report

When Skanska is a lessee, the lease assets are recognized as a right-of-use asset in the statement of financial position,
while the future obligation to the lessor is recognized as a liability in the statement of financial position.

Corporate governance

As a lessor Skanska has both finance and operating leases.

Remuneration report

Skanska is a lessor of finance leases via subleases for external office space.

Impairment losses/reversals of impairment losses were recognized within cost of sales and selling and administrative
expenses.

Risk and opportunity management

As an operating lessor, Skanska leases properties to tenants via its Investment Properties and Commercial Property
Development business streams.

Financial information

A. Skanska as a lessee

Financial analysis

Right-of-use assets by asset class

Financial statements

Dec 31, 2023

Notes

Property (buildings and land)

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data

Impairment losses/reversals of impairment losses on right-of-use assets
During the year, impairment losses/reversals of impairment losses in the net amount of SEK -1 M (1) were recognized.
Impairment losses/reversals of impairment losses were recognized in Poland during the year and for the comparative year.

Dec 31, 2022

99

99

Offices

2,469

2,735

Cars

416

316

Machinery

52

70

Other

46

37

3,082

3,256

Total property, plant and equipment, right-of-use assets1

Annual General Meeting
Investors’ calendar and addresses

Right-of-use assets, ground leases

3,613

3,676

Total current-asset properties, right-of-use assets1

3,613

3,676

1 Short-term leases and leasing of assets of low value are not included as these are expensed immediately. The cost of short-term leases
amounted to SEK 756 M (688) and the cost of low-value lease assets amounted to SEK 952 M (796).

For information on depreciation and amortization, see Note 12.

Impairment losses
Impairment losses/reversals of impairment losses

2023

Reversals of impairment losses
2022

Total

2023

2022

2023

2022

1

2

-1

1

Property (buildings and land)
Offices-1

Cars
Machinery
Other
Total property, plant and equipment, right-of-use assets

-1

0

1

2

-1

1

0

0

0

0

0

0

Right-of-use assets, ground leases
Total current-asset properties, right-of-use assets

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Contents

Annual and Sustainability Report 2023

Group overview

Note 41. Leases, cont.

Operations

Carrying amount

Sustainability report

189

Property (buildings and land)

Corporate governance

Offices

Cars

Other right-of-use assets, noncurrent

Machinery

Right-of-use assets,
current

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

January 1

99

97

2,735

2,782

316

287

70

99

37

48

3,676

3,289

New leases

19

17

304

285

296

190

16

36

49

18

12

122

Risk and opportunity management

Remeasurement

7

109

129

8

-5

4

2

52

32

Leases sold

-3

-3

-1

-42

-118

Financial information

Divestments

-5
-614

-202

-1

-14

Remuneration report

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report

Depreciation andamortization

-25

-19

Impairment losses-631

Reversals of impairment
losses1

Reclassifications-3

Quarterly information

Exchange rate
differences for the year

Share data

December 31

-165

-38

-70

-39

-33

-1

99

-13

3

-35

167

99

2,469

2,735

1
9
416

316

52

5

-1

2

-83

364

70

46

37

3,613

3,676

Annual General Meeting
Investors’ calendar and addresses

Lease liabilities
Lease liabilities amount to SEK 7,047 M (7,281). For a maturity analysis of the undiscounted liabilities, see Note 6.
The interest expense amounted to SEK -243 M (-222) and is also presented in Note 14.
The cost of variable lease payments that are not included in the measurement of the lease liability amounts to
SEK 0 M (0).
The total cash flow from leases, excluding short-term leases and low-value lease assets, amounted to
SEK -1,211 M (-1,178), where SEK -968 M (-957) pertained to the amortization of lease liabilities andSEK -243 (-222) to interest paid.
Future undiscounted cash flows not reflected in lease liabilities amount to SEK 965 M (974). These relate to options toextend and cancel, and to leases that have not yet started but that Skanska has committed to.

Operating leases
Operating leases in the form of property leases are mainly entered into by the Investment Properties and Commercial
Property Development business streams. For information on investment properties, see Note 40 and for current-asset
properties, see Note 22.
The rental income for the year amounted to SEK 1,103 M (838).
The Group’s variable lease income for operating leases for the year amounted to SEK 96 M (69), which is not dependent
on an index or an interest rate.

Other
Revenue from subleasing of right-of-use assets consists mainly of leasing of offices and amounts to SEK 22 M (15).

The due dates of future undiscounted payments relating to operating leases break down as follows:

In 2023, Skanska USA Civil sold one building together with associated land to 121 Sampson Creek Road Industrial
LLC. Skanska is leasing back a smaller parcel of the land for three years. After elimination of the sale and leaseback
transaction, the profit amounted to SEK 47 M. The effect on cash flow of the sale and leaseback transaction amounted
to SEK 107 M. No sale and leaseback transactions were conducted in the comparative year.

Income, due

2023

Within one year

998

676

Later than one year but within five years

3,251

2,309

There are no leases containing special restrictions or special terms and conditions.

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B. Skanska as lessor
Finance leases
Skanska USA Civil, Skanska Central Europe and Commercial Property Development Europe have external leases
that are subleased. These are recognized as a financial receivable of SEK 52 M (60).

2022

Later than five years

4,612

3,746

Total

8,860

6,731

Contents

Annual and Sustainability Report 2023

190

Group overview

Note 42. Events after the reporting period

Operations

There are no material events after the end of the reporting period to report for the Group.

Sustainability report
Corporate governance
Remuneration report

Note 43. Five-year Group financial summary

Risk and opportunity management

Income statements, in accordance with IFRSOther comprehensive income, cont.
2023

2022

2021

20201)

2019

Revenue

167,168

163,174

143,865

160,344

172,846

Cost of sales-153,870-146,483-128,156-143,457-156,540

Gross income

13,297

16,692

15,70916,887

16,306

Notes

Selling and administrative expenses-9,386-8,998-7,865-8,269-9,469Auditor’s report

Change in value, investment
properties

Financial information
Financial analysis
Financial statements

Auditor’s review report of the sustainability report

175

2023

2022

2021

2020

2019

Translation differences attributable toequity holders

-947

2,290

1,808

-2,120672

1,692Translation differences attributable tonon-controlling interests

-4

14

7

-7

3

Hedging of exchange rate risk inforeign operations

-23

81

40

-19

4

Effect of cash flow hedges

-7

108

2

35

31

Share of other comprehensive incomeof joint ventures and associatedcompanies

-30

178

113

-176

-41

Quarterly information

Income from joint ventures andassociated companies

1,195

636

449

4,015

591

Share data

Operating income

5,282

10,021

8,293

12,6337,428

Annual General Meeting

Net financial items

Investors’ calendar and addresses

609

290

-168

-229

-88

5,890

10,312

8,125

12,404

7,340

Income taxes-861-2,027-1,238-2,839-1,286

Profit for the year

5,029

8,284

6,887

9,565

6,054

4,998

8,256

6,864

9,543

6,031

31

28

23

22

23

Income after financial items

Profit for the year attributable toparent company shareholders non-controlling interests
Other comprehensive income
Items that will not be reclassified to
profit or loss for the year

Tax related to items that have beenor will be reclassified to profit or loss
for the year

12

-19

-3

21

-10

-999

2,653

1,966

-2,266659

Other comprehensive income for theyear after tax

-790

5,679

3,977

-3,058-70

Comprehensive income for the year

4,239

13,963

10,863

6,507

5,984

4,212

13,92010,834

6,492

5,958

27

43

30

15

26

5,904

Remeasurement of defined-benefit
pension plans

273

3,818

2,585

-1,003-895

Comprehensive income for the year
attributable toTax related to items that will not bereclassified to profit or loss for the year

-64

-792

-575

211

166

 non-controlling interests

209

3,026

2,010

-792

-729

1 In the second quarter of 2022 a subsidiary in the USA discovered a computational error in the 2020 tax expense. A correction has been
made and the result is an increase of SEK 332 M in the tax liability recognized for the fourth quarter of 2020 and all quarters thereafter.
Profit for the period was not affected for any of the quarters in 2021. The effect on cash flow was taken in 2021. Since the error arose before
the earliest reported period, the opening balance of equity and tax liabilities for 2021 has been restated taking the error into account. The
five-year financial summary has been corrected correspondingly.

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Items that have been or will bereclassified to profit or loss for theyearparent company shareholders

Cash flow
Cash flow from operating activities

3,207

510

7,156

10,866

Cash flow from investing activities

5,997

4,847

-10,528

2,701

-313

Cash flow from financing activities-1,255-6,530-5,613-1,895-7,665

Cash flow for the year

7,949

-1,173-8,985

11,671-2,074

Contents

Group overview
Operations

Annual and Sustainability Report 2023

Note 43. Five-year Group financial summary, cont.

Income statement, in accordance with Segment Reporting

Sustainability report
Corporate governance

191

2023

2022

2021

20201)

2019

Revenue
160,636

156,004

132,587

140,483

159,579

Remuneration report

Residential Development

5,013

8,751

13,351

13,07012,483

Commercial Property Development

5,331

14,276

12,12814,983

17,850

Risk and opportunity management

Investment Properties

186

40

n/a

n/a

n/a

Central and Eliminations-14,114-17,469-10,490-9,931-13,130Group

157,052

161,602

147,576

158,606

176,782

3,772

Financial information

Construction

Financial analysis
Financial statements

Operating income

Notes

Construction

5,632

5,770

5,013

3,528

Auditor’s report

Residential Development-1,262

891

1,866

1,543

1,195

Auditor’s review report of the sustainability report

Commercial Property Development-1,365

3,023

3,378

3,897

3,287
-388

Quarterly information
Share data

Investment Properties

-62

140

Central

290

-339

-415

2,830

-3

-187

-9

62

-38

3,231

9,297

9,832

11,860

7,828

Eliminations

Annual General Meeting

Operating income

Investors’ calendar and addresses

Financial items

601

289

-172

-236

-103

3,832

9,586

9,660

11,624

7,725

Income taxes-560-1,885-1,472-2,681-1,353

Profit for the year

3,272

7,702

8,188

8,943

6,372

Earnings per share, segment, SEK

7.89

18.62

19.80

21.65

15.46

Earnings per share after dilution,
segment, SEK

7.82

18.49

19.65

21.53

15.39

Income after financial items

1 In the second quarter of 2022 a subsidiary in the USA discovered a computational error in the 2020 tax expense. A correction has been
made and the result is an increase of SEK 332 M in the tax liability recognized for the fourth quarter of 2020 and all quarters thereafter.
Profit for the period was not affected for any of the quarters in 2021. The effect on cash flow was taken in 2021. Since the error arose before
the earliest reported period, the opening balance of equity and tax liabilities for 2021 has been restated taking the error into account. The
five-year financial summary has been corrected correspondingly.

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Contents

Group overview
Operations

Annual and Sustainability Report 2023

Note 43. Five-year Group financial summary, cont.

Statement of financial position

Sustainability report
Corporate governance192

Dec 31, 2023

Dec 31, 2022

3,758

Dec 31, 20214

Dec 31, 20204

Dec 31, 2019ASSETS
Non-current assets

Remuneration report

Investment Properties

5,141

Property, plant and equipment

8,035

7,803

7,279

6,816

7,742

Risk and opportunity management

Property, plant and equipment, right-of-use assets

3,082

3,256

3,314

3,930

4,616

Goodwill

3,919

4,160

3,934

3,713

4,057

Other intangible assets

348

488

676

771

865

Financial analysis

Investments in joint ventures and associated companies

2,072

2,901

2,185

1,689

3,442

Financial statements

Non-current financial assets1, 3

4,992

3,607

3,875

1,931

2,528

Notes

Deferred tax assets

2,518

995

1,984

1,803

1,862

Total non-current assets

30,10826,97023,247

20,65325,112Financial information

Auditor’s report
Auditor’s review report of the sustainability report

Current assets

Quarterly information

Current-asset properties2

58,66058,47449,74544,94846,373

Share data

Current-asset properties, right-of-use assets

3,613

3,676

3,289

2,980

3,980

Annual General Meeting

Inventories

1,275

1,300

1,090

1,100

1,128

Current financial assets3

7,498

14,413

18,810

8,492

6,899

Tax assets

1,246

1,248

1,247

950

670

Contract assets

7,865

7,772

5,451

4,599

5,898

Trade and other receivables

27,012

27,72625,212

22,401

27,213

Cash and cash equivalents

17,912

10,014

10,947

19,508

8,745

Total current assets

125,082

124,623

115,791

104,979

100,906

TOTAL ASSETS

155,189

151,593

139,039

125,631

126,018

30,05027,89633,531

29,69218,000

38

38

37

43

44

Commercial Property Development

37,991

34,322

29,691

27,90629,708Residential Development

20,67024,152

20,054

17,041

16,66558,66058,47449,74544,94846,373

4

1

314

99

63

193

127

Investors’ calendar and addressesof which interest-bearing
1 Of which shares
2 Current-asset properties

3 Items related to non-interest-bearing unrealized changes in the value of derivatives/securities are included as follows:
Non-current financial assets
Current financial assets

4 In the second quarter of 2022 a subsidiary in the USA discovered a computational error in the 2020 tax expense. A correction has been made and the result is an increase of SEK 332 M in the tax liability recognized for the fourth quarter of 2020 and all quarters thereafter. Profit for the period
was not affected for any of the quarters in 2021. The effect on cash flow was taken in 2021. Since the error arose before the earliest reported period, the opening balance of equity and tax liabilities for 2021 has been restated taking the error into account. The five-year financial summary has
been corrected correspondingly.

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Contents

Group overview
Operations

Annual and Sustainability Report 2023

Note 43. Five-year Group financial summary, cont.

Statement of financial position, cont.

Sustainability report
Corporate governance
Remuneration report193

Dec 31, 2023

Dec 31, 2022

Dec 31, 20212

Dec 31, 20202

Dec 31, 201956,202

55,11145,351

38,28832,924

146

144

114

97

97

56,34755,25545,46538,38533,021

2,565

EQUITY
Equity attributable to equity holders
Non-controlling interests
TOTAL EQUITY

Risk and opportunity management
Financial information

LIABILITIES
Non-current liabilities

Financial analysis

Non-current financial liabilities1

7,300

2,714

3,389

3,247

Financial statements

Lease liabilities

6,137

6,328

6,040

6,217

7,843

Pensions

3,167

2,891

5,936

7,360

6,866

Notes
Auditor’s report
Auditor’s review report of the sustainability report

Deferred tax liabilities2

2,218

1,943

1,254

967

1,045

Total non-current liabilities

18,822

13,876

16,61917,791

18,319Quarterly information

Current liabilities

Share data

Current financial liabilities1

3,615

4,854

4,780

4,663

4,617

Annual General Meeting

Lease liabilities

909

953

920

1,016

1,078

Tax liabilities2

779

388

710

2,176

564

Current provisions

11,087

10,368

11,23910,326

10,021

Contract liabilities

23,22024,05922,664

19,462

20,419Trade and other payables

40,41041,84036,642

31,81337,979Total current liabilities

80,02082,462

76,95569,45574,678TOTAL EQUITY AND LIABILITIES

155,189

151,593

139,039

125,631

126,018

21,014

17,59020,933

22,412

22,917

6

2

150

131

85

50

Investors’ calendar and addressesof which interest-bearing
1 Items related to non-interest-bearing unrealized changes in the value of derivatives/securities are included as follows:
Non-current financial liabilities
Current financial liabilities

1114

2 In the second quarter of 2022 a subsidiary in the USA discovered a computational error in the 2020 tax expense. A correction has been made and the result is an increase of SEK 332 M in the tax liability recognized for the fourth quarter of 2020 and all quarters thereafter. Profit for the period
was not affected for any of the quarters in 2021. The effect on cash flow was taken in 2021. Since the error arose before the earliest reported period, the opening balance of equity and tax liabilities for 2021 has been restated taking the error into account. The five-year financial summary has
been corrected correspondingly.

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Contents

Group overview
Operations

Annual and Sustainability Report 2023

194

Note 43. Five-year Group financial summary, cont.

Financial ratios1

Sustainability report

Dec 31, 2023

Dec 31, 2022

Dec 31, 20214

Dec 31, 20204

Order bookings2

165,795

162,665

153,590

149,802145,818

Order backlog2

229,637

229,771

207,031

178,924

185,370

Remuneration report

Average number of employees

27,25628,38030,051

32,46334,756

Ordinary dividend per share, SEK3

5.50

7.50

7.00

6.50

3.25

Risk and opportunity management

Extra dividend per share, SEK3

3.00

3.00

Corporate governanceDec 31, 2019

Earnings per share, SEK

12.17

20.04

16.64

23.16

Earnings per share after dilution, SEK

12.07

19.90

16.52

23.03

14.62

Financial analysis

Capital employed

77,36072,84566,39860,79755,938Financial statements

Interest-bearing net receivables/net debt

9,037

10,306

12,598

7,280-4,917

Notes

Equity per share, SEK

137.01134.05110.01

92.87

80.01

Equity/assets ratio, %

36.3

36.4

32.7

30.6

26.2

Debt/equity ratio

-0.2

-0.2

-0.3

-0.2

0.1

Interest cover

-13.3

-42.8

71.4

84.4

100.6
20.3

Financial information

Auditor’s report
Auditor’s review report of the sustainability report

14.68

Quarterly information

Return on equity, %

9.0

17.0

16.9

26.9

Share data

Return on capital employed, %

8.2

15.2

13.5

21.5

14.3

Annual General Meeting

Return on equity, segment, %

5.8

15.8

20.1

25.1

21.4

Return on capital employed in Project Development units, segment, %

-3.7

8.1

11.8

12.2

10.3

Operating margin, %

3.2

6.1

5.8

7.9

4.3

Operating margin, Construction, %

3.5

3.7

3.8

2.5

2.4

Investors’ calendar and addresses

Cash flow per share, SEK
Number of shares at year-end-5.90-16.29

1.81

31.57

3.28

419,903,072

419,903,072

419,903,072

419,903,072

419,903,072

of which Class A shares

19,619,942

19,654,316

19,661,632

19,684,564

19,704,715

of which Class B shares

400,283,130

400,248,756

400,241,440

400,218,508

400,198,357

Average price, repurchased Class B shares
Number of Class B shares repurchased during the year
Number of Class B treasury shares, December 31

166.82173.40230.59190.743,060,000

2,924,000

1,048,500

460,000

9,713,560

8,771,931

7,655,488

7,616,674

8,394,479

Number of shares outstanding, December 31

410,189,512

411,131,141

412,247,584

412,286,398

411,508,593

Average number of shares outstanding

410,758,367

412,037,581

412,387,142

411,993,869

410,720,937

Average number of shares outstanding after dilution

414,137,628

414,922,620

415,491,861

414,304,017

412,585,074

0.82

0.70

0.75

0.56

0.45

Average dilution, %1 For definitions, see Note 44.
2 Refers to Construction.
3 Proposed by the Board of Directors: dividend of SEK 5.50 per share (7.50).
4 In the second quarter of 2022 a subsidiary in the USA discovered a computational error in the 2020 tax expense. A correction has been made and the result is an increase of SEK 332 M in the tax liability recognized for the fourth quarter of 2020 and all quarters thereafter. Profit for the period
was not affected for any of the quarters in 2021. The effect on cash flow was taken in 2021. Since the error arose before the earliest reported period, the opening balance of equity and tax liabilities for 2021 has been restated taking the error into account. The five-year financial summary has
been corrected correspondingly.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

Annual and Sustainability Report 2023

195

Note 44. Definitions
Return on equity, %Profit attributable to equity holders as a percentage of average equity attributable to equity holders.

Return on capital employed in Commercial Property Development segment, %Return on equity, segment, %Profit attributable to equity holders as a percentage of average equity attributable to equity holders:
3,240/55,799 = 5.8%

+ capitalized interest expense

Operating income

253+/- financial income and other financial items

2- interest income from treasury unit

Return on capital employed, consolidated, %Operating income plus financial income as a percentage of average capital employed.
Return on capital employed, business streams, markets and business/reporting units, %Operating income, financial income minus interest income from Skanska’s treasury unit (internal bank) and otherfinancial items as a percentage of average capital employed. For the Residential Development and Commercial Property
Development segments, capitalized interest is removed from operating income so that the return reflects the return
before borrowings.

Auditor’s report
Auditor’s review report of the sustainability report

Adjusted profit-1,110

Average capital employed1

43,203Return on capital employed in Commercial Property Development-2.6%

1 Average capital employedQ4 2023

40,760Q3 2023

46,04046,040Q2 2023

45,49845,498Q1 2023

41,622Q4 2022

38,547

x 0.5

20,38041,622
x 0.5

19,273
172,812/4

Quarterly information

Return on capital employed in Residential Development segment, %Share data

Operating income

Annual General Meeting+ capitalized interest expense

152

Operating income+/- financial income and other financial items

29+/- financial income and other financial items

Investors’ calendar and addresses-1,365-1,262- interest income from treasury unit

43,203Return on capital employed in Investment Properties segment, %-62- interest income from treasury unit

Adjusted profit-1,081

Adjusted profit

Average capital employed1

15,524

Average capital employed1

3,878

Return on capital employed in Residential Development-7.0%

Return on capital employed in Investment Properties-1.6%

1 Average capital employed-62

1 Average capital employedQ4 2023

14,406

7,203

Q4 2023

5,076

Q3 2023

14,591

14,591Q3 2023

3,701

3,701

Q2 2023

16,495

16,495

Q2 2023

3,694

3,694

15,633Q1 2023

3,714

8,173

Q4 2022

3,733

Q1 2023

15,633Q4 2022

16,346

x 0.5

x 0.5

62,095/4

x 0.5

2,538

3,714
x 0.5

15,524

1,867
15,514/4

3,878

Return on capital employed in Project Development units segment, %Calculated as the sum of the adjusted profit in Residential Development and Commercial Property Development
divided by the aggregate amount of capital employed, average, for Residential Development and Commercial Property
Development.

Residential Development
Commercial Property Development

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Adjusted
profit-1,081-1,110Capitalemployed,average
15,524
43,203Return on
capitalemployed
-7.0%
-2.6%

-2,19258,727-3.7%

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting

Annual and Sustainability Report 2023

196

Note 44. Definitions, cont.

Gross income
Revenue minus cost of sales.

Revenue, segment
Revenue, segment is the same as Revenue, IFRS in all business streams except for Residential Development andCommercial Property Development, where revenue is recognized when a binding contract is signed for the sale of homes
and properties. As segment reporting of joint ventures in Residential Development applies the proportional method, thisalso affects Revenue, segment.

Gross margin, %Gross income as a percentage of revenue.
Operating net
Rental income minus operating costs for investment properties (that is, operating expenses, costs for repair andmaintenance, property administration and property tax).

Adjusted equity attributable to equity holders, SEK bn

Equity per share, SEK
Equity attributable to equity holders divided by the number of shares outstanding at year-end.

Unrealized development gains, Commercial Property Development

5.7

Effect on unrealized equity in PPP portfolio

0.9

Economic occupancy rate, %Rental income including supplements less discounts for the period divided by total rental value for properties owned at
the end of the period. Properties owned at the end of the period are restated as if they have been owned during the whole
period, while disposed properties are excluded entirely.
Net financial items
The net of interest income, pension interest, interest expense, capitalized interest expense, change in market value andother financial items.
Free working capital
Non-interest-bearing receivables minus non-interest-bearing liabilities excluding taxes.

Investors’ calendar and addresses
Free working capital in Construction, average, SEK M
Calculated on the basis of five measurement points.
Q4 2023-29,107

x 0.5-27,756-27,756

Q2 2023-28,126-28,126

Q1 2023-28,115-28,115

Q4 2022-28,920

x 0.5

Selling and administrative expenses, %Selling and administrative expenses as a percentage of revenue.

-14,460-113,010/4

56,202Q3 2023

57,50357,503Q2 2023

56,90356,903Q1 2023

53,134Q4 2022

55,111

x 0.5-28,252

27,555
223,196/4-1.0

Adjusted equity

65.2

Cash flow per share, SEK
Cash flow before change in interest-bearing receivables and liabilities in relation to the average number of shares
outstanding.
Market appraisal
Commercial Property Development
Note 22 provides the estimated market value of Skanska’s current-asset properties. For completed commercial
properties and for development properties, the market value for the majority of properties has been calculated incooperation with independent external appraisers. The value of ongoing projects is measured internally. The calculated
market value of ongoing projects refers to each property once it is completed and fully occupied.

PPP portfolio
Skanska obtains an estimated value for the PPP portfolio by discounting estimated future cash flows in the form of
dividends and repayments of loans and equity by a discount rate based on country, risk model and project phase for thevarious projects. The discount rate chosen is applied to all future cash flows starting on the appraisal date. This is basedon the most recently updated financial model. This financial model describes all cash flows in the project and serves as
the ultimate basis for financing, which is carried out with full project risk and without guarantees from Skanska.

Estimated values have in part been calculated in cooperation with independent external appraisers and are stated in
Note 20 B.
55,799Rental value
Rental income including supplements for the period plus assessed market rent including supplements for vacantpremises.

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Less standard corporate tax, 10%

An estimated value is stated solely for projects that have reached contractual and financial close. All flows areappraised: investments in the project (equity and subordinated debenture loans), interest on repayments ofsubordinated loans, as well as dividends to and from the project company. Today all investments except New Karolinska
Solna are denominated in currencies other than Swedish kronor (SEK), and there is thus also an exchange rate risk.

28,10153,134x 0.5

3.4

Investment Properties
Note 40 provides the estimated market value of the investment properties.

Average equity attributable to equity holders, SEK M
Calculated on the basis of five measurement points.
Q4 2023

56.2

Unrealized surplus value in land, Residential Development

Residential Development
In appraising properties in Residential Development, market value is calculated taking into account the valuethat can be obtained within the usual economic cycle and refers to properties once they are completed.

-14,553

Q3 2023

Equity attributable to equity holders

Environmental certification, %The proportion of the Investment Properties portfolio that is certified at a minimum level of LEED Gold or the equivalent.

Net divestments/investments
Total investments minus total divestments.
Net leasing
Annual rent including supplements of new leases minus annual rent including supplements for agreements that havebeen served a notice of termination.

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

Note 44. Definitions, cont.

Cash flow from operations
Cash flow from business operations including taxes paid and cash flow from financing activities. See also Note 35.

Risk and opportunity management

Order bookings
Contracting assignments: Upon written order confirmation or signed contract, where financing has been arranged andconstruction is expected to begin within 12 months. If a previously received order is canceled in a subsequent quarter, thecancellation 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 Property Development, whichassumes that a building permit has been obtained and construction is expected to begin within three months.

Financial information

Services: For fixed-price assignments, upon signing of contract. For cost-plus assignments, order bookings coincide withrevenue. For service agreements, a maximum of 24 months of future revenue is included.

Corporate governance
Remuneration report

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

No order bookings are reported in Residential Development, Commercial Property Development or Investment Properties.
Order bookings in relation to revenue in Construction, rolling 12-month basis
Order bookings divided by revenue in Construction, rolling 12-month basis.
Unrealized development gains, Commercial Property Development
Market value minus investment value upon completion for ongoing projects, completed projects, and undeveloped landand development properties. Excludes projects sold according to segment reporting.
Order backlog
Contracting assignments: The difference between order bookings for the period and accrued revenue (accrued project
expenses 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.
The order backlog in the accounts of acquired subsidiaries on the date of acquisition is not reported as order bookings,
but is included in order backlog amounts.

Operating income, segment
Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, 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.
Operating income, rolling 12-month basis
Revenue minus the cost of sales, selling and administrative expenses, change in value of investment properties, andincome from joint ventures and associated companies, rolling 12 months.
Operating margin, %Operating income as a percentage of revenue.
Debt/equity ratio
Interest-bearing net liabilities divided by equity including non-controlling interests.
Equity/assets ratio, %Equity including non-controlling interests as a percentage of total assets.
Capital employed, average
Calculated on the basis of five measurement points – see Return on capital employed.
Capital employed, consolidated
Total assets minus non-interest-bearing liabilities.
Capital employed, markets, business streams and business/reporting units
Total assets less tax assets, deposits in Skanska’s treasury unit (internal bank) and pension receivables, minus noninterest-bearing liabilities excluding tax liabilities. Capitalized interest expense is also deducted from total assets for the
Residential Development and Commercial Property Development business streams.

Income after financial items
Operating income minus financial items.

Capital employed Residential Development, SEK M
Total assets

24,057

Total assets

Earnings per share, segment, SEK
Profit for the period, segment, attributable to equity holders divided by the average number of shares outstanding.

– tax assets-672– tax assets-10– deposits in treasury unit

-604

– deposits in treasury unit

-245

– pension receivables-37– pension receivables

Earnings per share, SEK
Profit for the period attributable to equity holders divided by the average number of shares outstanding.

– non-interest-bearing liabilities (excluding
tax liabilities)

Capital employed Investment Properties, SEK M-8,081

Earnings per share after dilution, SEK
Profit for the period attributable to equity holders divided by the average number of shares outstanding after dilution.

– capitalized interest expense

Interest-bearing net receivables/net liabilities
Interest-bearing assets minus interest-bearing liabilities.

Capital employed Commercial Property Development,
SEK M

Interest-bearing net receivables/net liabilities, adjusted
Interest-bearing net receivables/liabilities excluding cash and cash equivalents with restrictions, lease liabilities andinterest-bearing net pension liabilities.

Total assets

47,514– tax assets-1,304– deposits in treasury unit

-1,303

Interest coverOperating income and financial income plus depreciation/amortization divided by net interest.

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197

Operating income
Revenue minus the cost of sales, selling and administrative expenses, change in value of investment properties, andincome from joint ventures and associated companies.

-257
14,406– pension receivables– non-interest-bearing liabilities (excluding
tax liabilities)– capitalized interest expense-3,543-604
40,760– non-interest-bearing liabilities (excluding
tax liabilities)

5,441

-109
5,076

Comprehensive income
Change in equity not attributable to transactions withowners.
Leasable area, sq m2
Leasable area including garage.

Surplus ratio, %Operating net for Investment Properties as a percentageof rental income.
Other comprehensive income
Comprehensive income minus profit according to
the income statement. The item includes translationdifferences, hedging of exchange rate risk in foreign
operations, remeasurements of defined-benefit pension
plans, effects of cash flow hedges and tax attributableto other comprehensive income.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements

Annual and Sustainability Report 2023

Parent company’s notes including accounting and valuation principles
The parent company has prepared its annual accounts in compliance with the Annual Accounts Act and the Swedish
Financial Reporting Board’s Recommendation RFR 2, Accounting for Legal Entities. Accordingly, the parent company
applies IFRS/IAS as far as this is possible within the framework of the Annual Accounts Act. See Note 1 Parent company
accounting and valuation principles.

Reconciliation with the balance sheet

Note 45. Financial instruments, parent company

Property, plant and equipment and intangible assets

Financial instruments are presented in accordance with IFRS 7 Financial Instruments: Disclosures. This note contains
figures for the parent company’s financial instruments. See also the notes to the consolidated financial statements:
Note 6 and financial risk management.
Financial instruments in the balance sheet
Non-current receivables in Group companies

Auditor’s report

Current receivables in Group companies

Auditor’s review report of the sustainability report

Total financial instruments, assets

Share data

Dec 31, 2023

Dec 31, 2022

18,526

11,422176

16

18,702

11,438

Liabilities
Non-current liabilities to Group companies

64

276

Trade payables and current liabilities to Group companies

407

26

Total financial instruments, liabilities

471

302

Annual General Meeting
Investors’ calendar and addresses

The fair value of the parent company’s financial instruments does not deviate significantly in any case from the carrying
amount. All assets belong to the category measured at amortized cost. No assets have been measured at fair value
through profit or loss. All financial liabilities belong to the category measured at amortized cost.

Dec 31, 2023

Dec 31, 2022

18,702

11,438AssetsFinancial instruments
Other assets
29

1

12,50012,048Other non-current receivables

101

101

Tax assets

62

66

Other current receivables and accrued receivables

315

138

31,70923,792471

302

Holdings in Group companies, joint ventures and other securities

Assets

Notes

Quarterly information

198

Total assets
Equity and liabilities
Financial instruments
Other liabilities
Equity30,99323,195

Provisions

154

213

Other current liabilities and accrued liabilities

91

82

31,70923,792Financial income and expense recognized in financial items

2023

2022

Interest income on receivables

565

96

Interest expense on financial liabilities measured at amortized cost

-35

-4

Total

530

92

Total equity and liabilities
Impact of financial instruments on the parent company income statement

The parent company has no income or expense from financial instruments that is recognized directly in equity.
Risks attributable to financial instruments
The parent company holds financial instruments almost exclusively in the form of intra-Group receivables and liabilities.
All external management of lending, borrowing, interest and currencies is handled by the Group’s treasury unit (internalbank), the subsidiary Skanska Financial Services AB. See also Note 6 to the consolidated financial statements.
Credit risk
The carrying amount of financial instruments, assets, corresponds to the maximum credit exposure on the closing day.
There were no impairment losses on financial instruments as of the closing day. No reserves for future credit losses
according to IFRS 9 are made, as the parent company’s trade receivables – with only one small exception – are Group
company receivables over which Skanska AB exercises control. The credit risk is therefore minimal.

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Annual and Sustainability Report 2023

199

Group overview

Note 46. Revenue, parent company

Note 48. Income taxes, parent company

Operations

The parent company’s net sales consist mainly of amounts billed to Group companies.

Sustainability report

The amount includes SEK 1,213 M (767) in sales to subsidiaries. For other transactions with related parties, see Note 63.

2023

Note 47. Financial items, parent company

Financial analysis
Financial statements
Notes

2023
Dividend

Income from holdingsin Group companies

Interest income and Interest expense andsimilar items
similar items

Interest income

-9

-3

-18

2023

2022

10,922

10,048565

Tax at tax rate of 20.6 percent (20.6)-2,250-2,070-35-35

Tax effect of:-35

10,780

2,112

2,060

-1

-8

565
10,250

-1

Total

Total
10,250Interest expense
Total

Deferred tax expense/income from change in temporary differences

Income after financial items

10,250565

Dividends from subsidiaries
Non-deductible expenses

Auditor’s report
Auditor’s review report of the sustainability report-5-4

The Swedish tax rate of 20.6 percent in relation to taxes recognized is explained in the table below.

Risk and opportunity management
Financial information

2022

-2

Tax due to changed taxation

Corporate governance
Remuneration report

Current taxes

2022

Quarterly information

Dividend

Share data

Interest income

Annual General Meeting

Interest expense

Investors’ calendar and addresses

Total

Income from holdingsin Group companies

Interest income and Interest expense andsimilar items
similar items

9,788
96
9,788

Total
9,788

96

96
-4

-4

-4

9,880

Group contributions paid/tax effect of net interest received

136

Recognized tax expense/income

-3

-18

Dec 31, 2023

Dec 31, 2022

Non-deductible expenses refers to personnel-related costs and costs for discontinued operations.
Deferred tax assets
Deferred tax assets for employee-related provisions

55

56

Income from holdings in Group companies
The amount for dividends consists of dividends as decided by the AGM, amounting to SEK 10,250 M (10,000),less SEK 0 M (-212) in Group contributions distributed.

Total

55

56

2023

2022

Net interest
Of interest income, SEK 564 M (96) relates to Group companies. Of interest expense, SEK -35 M (-4) relates
to Group companies.

Deferred tax assets, January 1

56

65

Deferred tax expense/income-1-9Deferred tax assets, December 31

55

56

Change in deferred taxes in balance sheet

The parent company expects to be able to utilize deferred tax assets to offset Group contributions from Swedish
operating subsidiaries.

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Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

Note 49. Intangible assets, parent company

Note 51. Non-current financial assets, parent company

Intangible non-current assets are recognized in accordance with IAS 38 Intangible Assets. See Note 1. Amortization of
intangible assets for the year according to plan amounted to SEK -3 M (-2) and is included in selling and administrative
expenses. In determining the amortization amount, the parent company has paid particular attention to estimatedresidual value at the end of useful life.

Holdings and receivables are reported as non-current financial assets. Holdings are allocated between holdings inGroup companies and joint arrangements. See Note 52 and Note 53. Receivables are allocated between receivablesfrom Group companies, deferred tax assets and other non-current receivables. Tax assets are described in Note 48. All
receivables except deferred tax assets are interest-bearing.

Financial information

2023

2022

January 1

22

22

Accumulated cost

Purchases

8
22

Share-based payments toemployees of subsidiaries1
Group contributions paid

255

Accumulated cost

Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

Holdings in Group
companies

Intangible assets

Remuneration report
Risk and opportunity management

200

30
Accumulated amortization according to plan
January 1

-21

-19

Amortization for the year

-3

-2

-24

-21

Accumulated impairment losses
January 1

Share data

0

0

0

0

Holdings
January 1

Holdings in joint
arrangements

Other non-current holdingsof securities

2023

2022

2023

2022

2023

2022

12,045

11,783

3

3

0

0

197

262
0

0

3

3

0

0

Share of income
12,497

12,045

Accumulated impairment
lossesJanuary 1

0

0

0

0

0

0

0

0

0

0

0

0

Carrying amount, December 31

12,497

12,0453300Carrying amount, January 1

12,045

11,7833

30

0Annual General Meeting
Investors’ calendar and addresses

Carrying amount, December 31

61

Carrying amount, January 1

1

3

1 Equivalent to the portion of the Group’s cost for Seop 5 and Seop 6 for employees of subsidiaries and recognized in the parent company
accounts as an increase in the carrying amount of holdings in Group companies and an increase in equity. If a decision is made later
requiring a subsidiary to compensate the parent company for the value of the shares issued, receivables are transferred to the Group
company. The amount for 2023 was thus reduced by SEK 252 M (184).

Note 50. Property, plant and equipment, parent company

Receivables from Group
companies

Property, plant and equipment are reported in accordance with IAS 16 Property, Plant and Equipment. See Note 1.
Machinery and equipment owned by the parent company are recognized as property, plant and equipment.

Receivables

Depreciation on property, plant and equipment for the year according to plan amounted to SEK -7 M (0).

2023

2022

2023

2022

January 1

11,422

5,669

157

172

Receivables added/settled

7,104

5,753

-1

-15

18,526

11,422

156

157

Carrying amount, December 31

18,526

11,422

156

157

Carrying amount, January 1

11,422

5,669

157

172

Accumulated cost

Plant and equipment
2023

2022

January 1

7

7Purchases

30

Accumulated cost

37

7

January 1-7-7

Depreciation for the year

-7

0

-14

-7

Carrying amount, December 31

23

0Carrying amount, January 1

00

Accumulated depreciation according to plan

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Other non-current receivables anddeferred tax assets

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report

Annual and Sustainability Report 2023

201

Note 52. Holdings in Group companies, parent company

Note 53. Holdings in joint arrangements, parent company

The following list comprises the parent company’s directly owned participations and significant indirectly owned
participations in Group companies. The subsidiary Skanska Kraft AB is a holding company that owns the Group’s
participations in Skanska Group operating companies. Skanska Financial Services AB is the Group’s treasury unit
(internal bank).

Holdings in joint arrangements are reported in accordance with IFRS 11 Joint Arrangements. See Note 1.

Directly owned holdings in Group companies

Corp. ID No.

RegisteredofficePercentage
of capitaland votes

Skanska Financial Services AB

556106-3834

Stockholm

100

Skanska Kraft AB

556118-0943

Stockholm

100Company

Total

Company

Share data

Group companies

Investors’ calendar and addresses

Carrying amount

Sundlink Contractors HB

2023

2022

70

69

12,427

11,976

12,497

12,045

Corp. ID No.

RegisteredofficePercentage
of capitaland votes

Skanska USA Building Inc.

22-3752540

USA

100

Skanska Sverige AB

556033-9086

Stockholm

100

Skanska Industrial Solutions AB

556793-1638

Stockholm

100

Skanska USA Civil Inc.

46-0466061

USA

100

Skanska Construction Holdings UK Ltd

4101344

UK

100

Skanska Norge AS

943049467

Norway100

Skanska a.s.

26271303

Czechia100

Skanska S.A.

7780001070

Poland100

Skanska Oy

0102282-6

Finland100

Skanska Kommersiell Utveckling
Norden AB

556825-9344

Stockholm

100

Skanska Förvaltningsfastigheter AB

559342-4533

Stockholm

100

Skanska Central Europe Holding AB

556578-3338

Malmö

100

Skanska USA Commercial
Development Inc.

26-1833854

USA

100

Skanska Residential a.s.

2445344

Czechia100

BoKlok Housing AB

556673-3829

Stockholm

100

Skanska Infrastructure
Development Inc.

20-4847293

USA

100

The Group has a total of 779 subsidiaries. The above subsidiaries are the main source of the Group’s revenue and assets.

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Registeredoffice969620-7134

Malmö

2023

2022

37

Total

3

3

3

3

The company has no operations other than fulfilling warranty obligations.

Note 54. Prepaid expenses and accrued income, parent company

Participations owned by Group companies

Quarterly informationCorp. ID No.
Swedish joint arrangements

Group companies

Auditor’s review report of the sustainability report

Annual General Meeting

Carrying amount
Percentage
of capitaland votes

The parent company has prepaid expenses and accrued income of SEK 184 M (22). This amount consists of SEK 2 M (1)in prepaid insurance premiums and SEK 182 M (21) in other accrued receivables.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements

Annual and Sustainability Report 2023

202

Note 55. Equity, parent company

Note 57. Provisions for pensions and similar obligations, parent company

Restricted and unrestricted equity
According to Swedish law, equity must be allocated between restricted and unrestricted equity. Share capital and thestatutory reserve constitute restricted equity.

Pension liabilities according to the balance sheet

Unrestricted equity consists of retained earnings and profit for the year.
Parent company equity comprised SEK 1,260 M (1,260) in share capital, SEK 598 M (598) in the statutory reserve,
SEK 18,216 M (11,307) in retained earnings and SEK 10,919 M (10,030) in profit for the year.

Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Dec 31, 2022

107

109

Other pension obligations

21

25

Total

128

134

Dec 31, 2023

Dec 31, 2022

1 Liabilities in compliance with the Pension Obligations Vesting Act.

The Board proposes a dividend for 2023 of SEK 5.50 (7.50) per share.
The proposal is equivalent to a dividend distribution totaling SEK 2,256 M (3,081).
No dividend is distributed for the parent company’s holding of Class B treasury shares. The Board proposes Tuesday,
April 2, 2024 as the record date to receive the dividend. The total dividend may change by the record date, dependingon acquisitions of Class B treasury shares and the transfer of Class B shares to participants in Skanska’s long-term
employee ownership programs.

Notes
Auditor’s report

Dec 31, 2023
Interest-bearing pension liabilities1

Number of shares

The company’s total pension obligations

837

819

Less pension obligations secured through pension funds

-709

-685

Provisions for pensions and similar obligations1

128

134

1 O f which SEK 7 M (8) is secured through credit insurance. Other pension obligations are largely secured through pledged endowment
policies.

2023

2022

410,758,367

412,037,581

Of the company’s total pension obligations SEK 666 M (633) is for ITP plans.

414,137,628

414,922,620

No transfers to pensions funds are expected to be made in 2024.

419,903,072

419,903,072

Average number of shares outstanding
after share repurchase transactions and conversion
after share repurchase transactions, conversion and dilution
Total number of shares

Reconciliation, provisions for pensions

The number of shares amounted to 419,903,072 (419,903,072), divided into 19,619,942 (19,654,316) Class A shares and400,283,130 (400,248,756) Class B shares.
During the year 34,374 (7,316) Class A shares were converted into the same number of Class B shares. A total of
3,060,000 (2,924,000) Class B shares were repurchased. After distribution of 2,118,371 (1,807,557) shares, there were
9,713,560 (8,771,931) Class B treasury shares remaining.
The quota value per share is SEK 3.00 (3.00). All shares are fully paid up.

2023

2022

January 1

109

115

Pension expenses

16

14

Benefits paid

-18

-20

Provisions for pensions according to the balance sheet

107

109

Each Class A share carries ten votes and each Class B share carries one vote.
Class B shares are listed on Nasdaq Stockholm.
According to the Articles of Association, Skanska’s share capital may not fall below SEK 1,200 M nor exceed SEK 4,800 M.

Note 56. Provisions, parent company

Note 58. Liabilities, parent company

Provisions for pensions and similar obligations are reported according to RFR 2. Other provisions are reported according
to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. See Note 1.

Liabilities are allocated between non-current and current liabilities in accordance with IAS 1 Presentation of Financial
Statements. See Note 1.

Provisions for pensions and similar
obligations

Other
provisions

2023

2022

2023

2022

January 1

134

167

79

84

Provisions for the year/remeasurements

10

-15

15

61

Provisions utilized

-16

-18

-68

-66

December 31

128

134

26

79

Other provisions consists of employee-related provisions.

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The normal cycle time for Other provisions is one to three years.
Employee-related provisions include such items as social insurance contributions for employee ownership programs,
bonus programs and other obligations to employees.

Accrued expenses and prepaid income
The parent company has accrued expenses and prepaid income of SEK 85 M (77). This relates to accrued vacation
pay of SEK 29 M (25), accrued special payroll tax on pensions of SEK 30 M (27), accrued social insurance contributionsof SEK 14 M (12) and other accrued expenses of SEK 12 M (13).

Contents

Group overview

Annual and Sustainability Report 2023

203

Note 59. Expected recovery periods for assets and liabilities, parent company

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

Dec 31, 2023
Within12 months

After
12 months

Intangible non-current assets1

3

Property, plant and equipment1

7

Total

3

6

1

16

23

0

Holdings in Group companies andjoint arrangements2

12,500Receivables in Group companies3

18,526

Other non-current receivables
Deferred tax assets

Amounts expected to be recovered

Auditor’s review report of the sustainability report

Current receivables

Quarterly information

Current receivables in Group companies

Annual General MeetingTax assets

After
12 months

After 5 years

Total
1

0

0

12,50012,04812,04818,526

11,422

11,422

101

101

101

101

55

55

56

56

31,182

31,182

23,627

23,627

176

176

16

16

7

7

10

10
116

Other current receivables

131

131

116

Prepaid expenses and accrued income

184

184

22

22

498

498

164

164

31,709165

Investors’ calendar and addresses
TOTAL ASSETS

508

31,201

1 In the case of amounts expected to be recovered within 12 months, the expected depreciation/amortization has been recognized.
2 No portion of the amount is expected to be recovered within 12 months.
3 No portion of the amount is expected to be recovered within 12 months since the lending is considered to be non-current.

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After 5 years

Non-current financial assets

Auditor’s report

Share data

Dec 31, 2022
Within12 months

23,627

23,792

Contents

Group overview

Annual and Sustainability Report 2023

204

Note 59. Expected recovery periods for assets, provisions and liabilities, parent company, cont.

Operations
Sustainability report
Corporate governance
Remuneration report

Dec 31, 2023
Within12 months

After
12 months

Provisions for pensions and similar obligations

16

112

Other provisions

14

12

30

124

Amounts expected to be paid

Non-current liabilities

Financial statements

Liabilities to Group companies1

Auditor’s reportAfter
12 months

128

19

115

26

66

13

79

154

85

128

213

Total

After 5 years

Total
134

Liabilities

Financial analysis

Notes

After 5 years

Provisions

Risk and opportunity management
Financial information

Dec 31, 2022
Within12 months

64

64

276

276

64

64

276

276

Current liabilities
Trade payables

63

63

24

24

Auditor’s review report of the sustainability report

Liabilities to Group companies

344

344

2

2

Quarterly information

Other liabilities

6

6

5

5

Share data

Accrued expenses and prepaid income

85

85

77

77

498

108

716

193

Annual General Meeting
Investors’ calendar and addresses

498
Total liabilities and provisions

528

124

64

108
128

276

597

Total equity

30,99323,195EQUITY AND LIABILITIES

31,70923,792

1 Intra-Group non-current interest-bearing liabilities are treated as having a maturity of more than five years from the closing day.

Note 60. Assets pledged and contingent liabilities, parent company
Assets pledged
Assets pledged by the parent company totaled SEK 100 M (101), which relates to assets in the form of non-current
receivables.
These assets were pledged as collateral for some of the parent company’s pension obligations.
Contingent liabilities
Contingent liabilities are reported in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Note 1, section IAS 37, describes the accounting principles.

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Dec 31, 2023

Dec 31, 2022

Contingent liabilities on behalf of Group companies

132,997

122,315

Other contingent liabilities

15,754

20,465

148,751

142,780

Of the parent company’s contingent liabilities on behalf of Group companies, almost SEK 116.8 billion (115.0) relates toobligations for operations in Construction, mainly guarantees provided when Group companies were awarded contracts.
The remaining contingent liabilities for Group companies relate to guarantees for borrowing by Group companies
from credit institutions, guarantee undertakings in connection with divestment of properties by Group companies,
guaranteeing Group company undertakings to contribute capital to their joint ventures and guarantees for Group
company pension obligations.
Of other contingent liabilities, SEK 9.1 billion (11.9) relates to liability for external entities’ portion of ongoing contracting
work. Of the remaining SEK 6.7 billion (8.5), SEK 0.4 billion (0.1) is attributable to guarantees provided for financing of joint
arrangements in which Group companies are co-owners and SEK 6.3 billion (8.4) is for guarantees in connection withfinancing of residential projects in Sweden.
The amounts in the table include SEK 1 M (1) in parent company contingent liabilities relating to joint and several liability fortrading company undertakings. The company’s contingent liabilities relate to guarantees originating from surety provided or
responsibilities as a shareholder in companies.

Contents

Annual and Sustainability Report 2023

Group overview

Note 61. Cash flow statement, parent company

Operations

Adjustments for items not included in cash flow

Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information

Depreciation and amortization

205

Note 62. Wages and salaries, parent company
Wages, salaries, other remuneration and social insurance contributions
2023

2022

10

2

Capital gain00

Cost of Skanska Employee Ownership Program (Seop)

21

24

Total

31

26

The change in interest-bearing liabilities belonging to financing activities is presented in the following table.
2023

Salaries andremuneration

PensionexpenseBoard of Directors, President and CEO, andother senior executives1

66.9

19.0

89.2

16.0

Other employees

104.0

87.8

95.4

85.0

-90.9

Total

Notes
Auditor’s report

SEK M

PensionexpenseLess indemnification from pension fundTaxes paid
Total tax received in the parent company during the year amounted to SEK 1 M (-9).

Financial analysis
Financial statements

2022

2023
Salaries andremuneration

170.9

-86.7

15.9

184.6

Social insurance contributions including
pension expenses

70.0

69.0

Total

240.9

253.6

0

25.4

14.3

2022

January 1

276

134

1 Of which variable remuneration

Items affecting cash flow from financing activities

-212

142

64

276

Annual General Meeting

For disclosures of individual remuneration to each board member and the President and CEO, see Note 37. For board
members appointed by the trade unions, no disclosures are made concerning salaries and remuneration or pensions
since they do not receive these in their capacity as board members. For board members who were employees of thecompany prior to the beginning of the financial year, disclosures are made concerning pension obligations in their former
role as employees.

Investors’ calendar and addresses

In 2023, bonuses paid to the President and CEO, and other senior executives amounted to SEK 25.2 M (21.6).

Auditor’s review report of the sustainability report
Quarterly information
Share data

December 31

In 2023, an allotment of shares was completed under the employee ownership program, Seop 5. The value of sharesallotted amounted to SEK 21.8 M (20.2), of which SEK 16 M (15.6) was for board members, the President and CEO, andother senior executives.
In 2023, Skanska’s Swedish pension funds reimbursed Skanska AB in the amount of SEK 90.9 M (86.7).
The company’s pension obligations outstanding to the President and CEO including former Presidents and CEOs
amounted to SEK 135.1 M (135.6). The company’s pension obligations outstanding to other members of the Group
Leadership Team (Executive Vice Presidents) and to other former members of the Group Leadership Team amount to
SEK 86.1 M (88.4).
The cost for the year for defined-contribution pension plans was SEK 35.4 M (30.4) excluding indemnification.
Average number of employees
Personnel is calculated as the average number of employees. See Note 1.

Sweden2023

of whichmenof which
women

2022

of whichmenof which
women

112

61

51

81

32

49

of whichmen, %of which
women, %Men and women on the Board of Directors and Group Leadership Team on the closing day

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Dec 31, 2023

of whichmen, %of which
women, % Dec 31, 2022

Board members elected by the
Annual General Meeting

8

62

38

8

62

38

Board members appointed by
the trade unions

3

67

33

3

67

33

President and CEO, and othersenior executives

8

62

38

7

57

43

Contents

Group overview
Operations
Sustainability report

Annual and Sustainability Report 2023

206

Note 63. Related party transaction disclosures, parent company

Note 64. Disclosures in accordance with the Annual Accounts Act, Chapter 6,
Section 2 a, parent company

Disclosures on related parties, transactions with related parties and balances outstanding are provided in accordancewith IAS 24 Related Party Disclosures.

Corporate governance

For information on remuneration to senior executives and board members, see Note 62 and Note 37.
Other than the information provided in Note 62 and Note 37, no transactions with natural persons that are related parties
have taken place.

Remuneration report

The parent company is a related party to its subsidiaries. See Note 20A. Intra-Group transactions are presented below:

Risk and opportunity management

2023

2022

Sales to Group companies

1,213

767

Purchases from Group companies

-426

-149

Financial statements

Interest income from Group companies

564

96

Notes

Interest expense for Group companies

-35

-4

Dividends from Group companies

10,2509,788

Non-current receivables in Group companies

Financial information
Financial analysis

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information

Investors’ calendar and addresses

1. T he total number of shares in the company on December 31, 2023 was 419,903,072, divided into 19,619,942 Class A
shares with 10 votes each and 400,283,130 Class B shares with one vote each.
2. There are no restrictions on the transferability of shares based on provisions in the law or the Articles of Association.
3. O
 f the company’s shareholders, only AB Industrivärden and the Lundberg Group directly or indirectly havea shareholding that represents at least one tenth of the voting power of all shares in the company.
On December 31, 2023, AB Industrivärden’s holding amounted to 24.5 percent of total voting power in thecompany and the Lundberg Group’s holding to 13.2 percent of total voting power in the company.
4. S kanska’s pension fund does not own any shares in Skanska directly. There is however an insignificant percentage
of indirectly owned shares via investments in various mutual funds.
5. T he Class A shares entitle the holders to ten votes per share and the Class B shares to one vote per share. There areotherwise no restrictions in the Articles of Association on the number of votes each shareholder may cast at a general
meeting of shareholders.

18,526

11,422Current receivables in Group companies

176

16

6. T
 he company is not aware of any agreements between shareholders that may result in restrictions on the right to transfer
shares.

Non-current liabilities to Group companies

64

276

Current liabilities to Group companies

344

2

7. T
 he Articles of Association state that the appointment of board members is to take place at the company’s
Annual General Meeting. The Articles of Association contain no stipulations on dismissal of board members or onamendments to the Articles of Association.

132,997

122,315

Share data
Annual General Meeting

Due to the requirements in the Swedish Annual Accounts Act, Chapter 6, Section 2 a concerning disclosures on certain
circumstances that may affect the possibility of a takeover of the company through a public takeover bid for the shares in
the company, the following disclosures are provided.

Contingent liabilities on behalf of Group companies
All transactions were completed on market terms.

8. The Annual General Meeting 2023 resolved in accordance with the proposal by the Board of Directors (the Board) toauthorize the Board to resolve on acquisitions of Class B treasury shares on the following conditions:A. A
 cquisitions of Class B shares may only be effected on Nasdaq Stockholm.
B. T he authorizations may be exercised on one or several occasions, however at the latest before the Annual General
Meeting 2024.
C. A
 maximum of 3,500,000 Class B treasury shares may be acquired to secure delivery of Class B shares toparticipants in the Skanska employee ownership program for the financial years 2023, 2024 and 2025 resolved by
the Annual General Meeting 2022 (Seop 6).
D. A maximum of such amount of Class B treasury shares may be acquired that the parent company´s holding of own
shares after each acquisition amounts to a maximum of one-tenth of the total number of shares in Skanska to givethe Board increased freedom of action to be able to adapt the company’s capital structure and thereby contributeto increased shareholder value.
E. A cquisitions of Class B shares on Nasdaq Stockholm may only be made at a price within the applicable range ofprices (spread) on Nasdaq Stockholm at any given time, meaning the interval between the highest purchase priceand lowest selling price.
9. S kanska AB or its Group companies are not party to any material agreement that will go into effect, be amended orcease to apply if control over the company or Group companies changes as a consequence of a public takeover bid.
10. T
 here are agreements between Skanska AB or its Group companies and employees that prescribe remuneration if
employment is terminated without reasonable grounds. Such remuneration may not exceed 18 months’ fixed salary
after the end of the notice period or, in the case of the President and CEO, a maximum of 12 months’ severance pay
and a maximum of 12 months’ fixed salary after the end of the notice period.
11. There are no agreements prescribing termination of employment as a consequence of a public takeover bid for theshares in the company.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes

Annual and Sustainability Report 2023

Part of the Board of Directors' Report

Note 65. Supplementary information, parent company

Note 67. Allocation of earnings

Skanska AB (publ), Swedish corporate identity number
556000-4615, is the parent company of the Group.

The Board of Directors and the CEO propose that the profit for 2023, SEK 10,918,901,144, plus the retained earnings of
SEK 18,215,902,635, totaling SEK 29,134,803,779, be allocated as follows:

The company has its registered office in Stockholm,
Stockholm County, Sweden, and is a limited company incompliance with Swedish legislation.

For questions concerning financial information,please contact Skanska AB, Investor Relations,SE-112 74 STOCKHOLM, Sweden
Tel: +46 (0)10 448 00 00
email: investor.relations@skanska.se

The company’s headquarters are located in Stockholm,
Stockholm County, Sweden.
Address:
Skanska AB
Warfvinges väg 25
SE-112 74 STOCKHOLM
Tel: +46 (0)10 448 00 00
group.skanska.com

Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

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207

Note 66. Events after the reporting period, parent company
There are no material events after the end of the reporting period to report for the parent company.

A dividend to the shareholders of1

SEK 5.50 per share

2,256,042,316

To be carried forward

26,878,761,463

Total

29,134,803,779

1 B ased on the total number of shares outstanding on December 31, 2023. The total dividend may change by the record date, dependingon acquisitions of Class B treasury shares and the transfer of Class B shares to participants in Skanska’s long-term employee ownershipprogram.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

208

The Board’s assurance
The consolidated annual accounts and the annual accounts, respectively, have been prepared in accordance with
the international accounting standards referred to in Regulation (EC) No. 1606/2002 of the European Parliamentand of the Council of July 19, 2002 on the application of IFRS and with generally accepted accounting principles,and provide a true and fair view of the position and results of the Group and the parent company. The Report of the
Directors for the Group and the parent company provides a true and fair view of the operations, financial position
and results of the Group and the parent company, and describes the principal risks and uncertainties facing theparent company and the companies included in the Group.

Risk and opportunity management
The Annual and Sustainability Report was signed by all of the above in Stockholm, February 7, 2024.

Financial information
Financial analysis
Financial statements

Hans Biörck
Chairman

Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting

Pär Boman
Board member

Ola Fält
Board member

Jan Gurander
Board member

Mats Hederos
Board member

Richard Hörstedt
Board member

Fredrik Lundberg
Board member

Catherine Marcus
Board member

Ann E. Massey
Board member

Yvonne Stenman
Board member

Åsa Söderström Winberg
Board member

Investors’ calendar and addresses

Anders Danielsson
President and Chief Executive Officer

Our Auditor’s Report was submitted
on March 5, 2024
Ernst & Young AB

Rickard Andersson
Authorized Public Accountant

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Auditor’s report
This is a translation from the Swedish original. To the general meeting of the shareholders ofSkanska AB (Publ), corporate identity number 556000-4615

Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts of Skanska AB (publ) for
the year 2023 except for the statutory sustainability report on pages 16, 48, 61 and 63–78.
The annual accounts and consolidated accounts of the company are included on pages 16,
48, 61, 63–93 and 99–208 in this document.
In our opinion, the annual accounts have been prepared in accordance with the Annual
Accounts Act and present fairly, in all material respects, the financial position of the parent
company as of December 31st, 2023 and its financial performance and cash flow for the year
then ended in accordance with the Annual Accounts Act. The consolidated accounts have been
prepared in accordance with the Annual Accounts Act and present fairly, in all material respects,
the financial position of the group as of December 31st, 2023 and their financial performanceand cash flow for the year then ended in accordance with International Financial ReportingStandards (IFRS), as adopted by the EU, and the Annual Accounts Act. A corporate governancestatement has been prepared. Our opinions do not cover the statutory sustainability report on
pages 16, 48, 61 and 63–78.
The statutory administration report and the corporate governance statement are consistent
with the other parts of the annual accounts and consolidated accounts, and the corporate
governance statement is in accordance with the Annual Accounts Act.
We therefore recommend that the general meeting of shareholders adopts the income
statement and balance sheet for the parent company and the income statement and thestatement of financial position of the group.
Our opinions in this report on the annual accounts and consolidated accounts are consistent
with the content of the additional report that has been submitted to the parent company’s audit
committee in accordance with the Audit Regulation (537/2014) Article 11.

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209

Basis for Opinions
We conducted our audit in accordance with International Standards on Auditing (ISA) andgenerally accepted auditing standards in Sweden. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities section. We are independent of the parent
company and the group in accordance with professional ethics for accountants in Sweden andhave otherwise fulfilled our ethical responsibilities in accordance with these requirements. This

includes that, based on the best of our knowledge and belief, no prohibited services referred toin the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or,
where applicable, its parent company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in our professional judgment, were ofmost significance in our audit of the annual accounts and consolidated accounts of the current
period. These matters were addressed in the context of our audit of, and in forming our opinion
thereon, the annual accounts and consolidated accounts as a whole, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying financial statements.
Revenue recognition over time in Construction contracts
Description
The main portion of the company’s income relates to construction contracts. For 2023 therevenues from construction contracts amount to MSEK 160,636. Usually a performanceobligation is satisfied over time, which means that revenue should be recognized over time bymeasuring the progress towards complete satisfaction of that performance obligation. Revenue
is recognized on the basis of the company’s efforts to the satisfaction of a performanceobligation relative to the total expected efforts. This requires the entity to be able to measure
its progress towards complete satisfaction of the performance obligation and determine thetransaction price. This in turn requires that the Group has effective, coordinated systems forcost estimation, forecasting and revenue/expense reporting. Also, a consistent process isrequired to assess the final outcome of the project, including analysis of differences comparedwith earlier assessment dates. This critical judgment is performed at least once per quarter.

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Annual and Sustainability Report 2023

210

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

How our audit addressed this key audit matter
Our audit procedures include, among others, analytical procedures of revenue and margins
of material projects and data analytics of transactions. We have audited samples of revenue
and costs in selected projects, which are of material size or represents a significant risk to thecompany. We have also had discussions with the company’s controllers and responsible project
managers about assessments, assumptions and estimates related to revenue recognition,
profit margin and cost allocation.
We have also audited material contracts to identify potential risks for penalties due to any
delays in the projects, and we also have continuous meetings with the Company’s internal
legal representatives. We have audited provisions and other reserves related to projects within
Construction based on underlying support and the Company’s assessments.
We have continuous meetings and discussions with responsible auditors in each country to
identify and cover country-specific risks.
We have assessed the historical accuracy of the company’s estimates of the final outcomes ofprojects through discussions with Group Leadership Team and Audit Committee regarding theactual outcome.
In addition, we have evaluated whether the valuation of revenue in the Company’s accounting
principles is reasonable and assessed the completeness of the disclosure requirements, which
are found in Note 4 “Operating Segments” and Note 9 “Contract assets and contract liabilities”.
Valuation of investments in project development
Description
The book value of investments in project development, which constitute current asset
properties, amounts to MSEK 58,660 as shown in Note 22 “Current-asset properties/Project
development”. As shown in Note 22 the current-asset properties are carried at cost or net
realizable value, whichever is lower. The company therefore makes calculations of the net
realizable value. Potential impairment in development projects under construction andcompleted projects could have significant impact on the company’s net income. Changes in the
supply of similar projects, as well as changes in demand may materially affect both estimatedmarket values and carrying amounts for each project. These projects vary in size and theinvestment cycle could be either short or long.

How our audit addressed this key audit matter
Our audit procedures include assessing budgets and financial projections and reviewing otherfinancial input used to determine the value in use models. We have also audited work performedby external appraisers. We specifically focused on the sensitivity in the difference between
the net realizable value/estimated value and book values of the projects, where a reasonably
possible change in assumptions could cause the carrying amount to exceed its estimatedpresent value. We also assessed the historical accuracy of the company’s estimates of the
final outcomes of valuation through discussions with Group Leadership Team and the Audit
Committee regarding the actual outcome.
Finally, we evaluated the adequacy of the Company’s disclosures included in Note 22.
Litigations and legal matters
Description
The provision for legal disputes amounts to MSEK 2,597. As outlined in Note 29 “Provisions”
of the Annual Report, the Company is exposed to potential legal matters and disputes in theConstruction business stream for contracts that have been completed. Legal matters anddisputes including any provisions is a key audit matter to our audit because management
judgement is required. The assessment process is complex and entails assessing future
developments. In addition, some of the matters are in countries where the legal proceedings canstretch out over an extended period of time.
How our audit addressed this key audit matter
We have gained an understanding of the litigations and legal matters through discussions
with the responsible persons within the Company, the Group Leadership Team and the Audit
Committee. We have read the internal position papers prepared by the Company. We also
obtained lawyers’ letters to the extent considered necessary for our audit. For all potentiallymaterial legal matters we tested the underlying facts and circumstances considered relevant
for the legal advisors to reach their conclusions and assessed the best estimate of outflows andassociated provisions as determined by the Company.
Other Information than the annual accounts and consolidated accounts
This document also contains other information than the annual accounts and consolidated
accounts and is found on pages 1–15, 17–47, 49–60, 62, 94–98 and 215–224. The Board of
Directors and the Managing Director are responsible for this other information.
Our opinion on the annual accounts and consolidated accounts does not cover this otherinformation and we do not express any form of assurance conclusion regarding this otherinformation.

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Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

In connection with our audit of the annual accounts and consolidated accounts, our
responsibility is to read the information identified above and consider whether the information ismaterially inconsistent with the annual accounts and consolidated accounts. In this procedure
we also take into account our knowledge otherwise obtained in the audit and assess whether
the information otherwise appears to be materially misstated.
If we, based on the work performed concerning this information, conclude that there is amaterial misstatement of this other information, we are required to report that fact. We havenothing to report in this regard.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of
the annual accounts and consolidated accounts and that they give a fair presentation inaccordance with the Annual Accounts Act and, concerning the consolidated accounts, inaccordance with IFRS as adopted by the EU. The Board of Directors and the Managing
Director are also responsible for such internal control as they determine is necessary to enable
the preparation of annual accounts and consolidated accounts that are free from material
misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts, The Board of Directors and theManaging Director are responsible for the assessment of the company’s and the group’s ability
to continue as a going concern. They disclose, as applicable, matters related to going concern
and using the going concern basis of accounting. The going concern basis of accounting ishowever not applied if the Board of Directors and the Managing Director intends to liquidate thecompany, to cease operations, or has no realistic alternative but to do so.
The Audit Committee shall, without prejudice to the Board of Director’s responsibilities andtasks in general, among other things oversee the company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the annual accounts andconsolidated accounts as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with ISAs andgenerally accepted auditing standards in Sweden will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these annual accounts and consolidated accounts.

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As part of an audit in accordance with ISAs, we exercise professional judgment and maintainprofessional scepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the annual accounts andconsolidated accounts, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to211

provide a basis for our opinions. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of the company’s internal control relevant to our audit in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors and theManaging Director.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s useof the going concern basis of accounting in preparing the annual accounts and consolidated
accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether
any material uncertainty exists related to events or conditions that may cast significant doubt
on the company’s and the group’s ability to continue as a going concern. If we conclude thata material uncertainty exists, we are required to draw attention in our auditor’s report to therelated disclosures in the annual accounts and consolidated accounts or, if such disclosures
are inadequate, to modify our opinion about the annual accounts and consolidated accounts.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause a company and a group to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure and content of the annual accounts andconsolidated accounts, including the disclosures, and whether the annual accounts andconsolidated accounts represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within the group to express an opinion on the consolidated
accounts. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our opinions.
We must inform the Board of Directors of, among other matters, the planned scope and timingof the audit. We must also inform of significant audit findings during our audit, including any
significant deficiencies in internal control that we identified.
We must also provide the Board of Directors with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those mattersthat were of most significance in the audit of the annual accounts and consolidated accounts,
including the most important assessed risks for material misstatement, and are therefore the
key audit matters. We describe these matters in the auditor’s report unless law or regulationprecludes disclosure about the matter.

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Group overview

Annual and Sustainability Report 2023

212

Report on other legal and regulatory requirements

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Opinions
In addition to our audit of the annual accounts and consolidated accounts, we have also
audited the administration of the Board of Directors and the Managing Director of Skanska AB(publ) for the year 2023 and the proposed appropriations of the company’s profit or loss.

• has undertaken any action or been guilty of any omission which can give rise to liability to thecompany, or• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or
the Articles of Association.

We recommend to the general meeting of shareholders that the profit be appropriated inaccordance with the proposal in the statutory administration report and that the members of theBoard of Directors and the Managing Director be discharged from liability for the financial year.

Our objective concerning the audit of the proposed appropriations of the company’s profit
or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance
whether the proposal is in accordance with the Companies Act.

Basis for opinions
We conducted the audit in accordance with generally accepted auditing standards in Sweden.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the group in accordance withprofessional ethics for accountants in Sweden and have otherwise fulfilled our ethicalresponsibilities in accordance with these requirements.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with generally accepted auditing standards in Sweden will always
detect actions or omissions that can give rise to liability to the company, or that the proposed
appropriations of the company’s profit or loss are not in accordance with the Companies Act.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinions.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors is responsible for the proposal for appropriations of the company’s
profit or loss. At the proposal of a dividend, this includes an assessment of whether thedividend is justifiable considering the requirements which the company’s and the group’s typeof operations, size and risks place on the size of the parent company’s and the group’s equity,
consolidation requirements, liquidity and position in general.
The Board of Directors is responsible for the company’s organization and the administrationof the company’s affairs. This includes among other things continuous assessment of thecompany’s and the group’s financial situation and ensuring that the company’s organization isdesigned so that the accounting, management of assets and the company’s financial affairs
otherwise are controlled in a reassuring manner. The Managing Director shall manage theongoing administration according to the Board of Directors’ guidelines and instructions andamong other matters take measures that are necessary to fulfill the company’s accounting inaccordance with law and handle the management of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and thereby our opinion about
discharge from liability, is to obtain audit evidence to assess with a reasonable degree of
assurance whether any member of the Board of Directors or the Managing Director in any
material respect:

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As part of an audit in accordance with generally accepted auditing standards in Sweden, we
exercise professional judgment and maintain professional scepticism throughout the audit. The
examination of the administration and the proposed appropriations of the company’s profit
or loss is based primarily on the audit of the accounts. Additional audit procedures performed
are based on our professional judgment with starting point in risk and materiality. This meansthat we focus the examination on such actions, areas and relationships that are material forthe operations and where deviations and violations would have particular importance forthe company’s situation. We examine and test decisions undertaken, support for decisions,actions taken and other circumstances that are relevant to our opinion concerning discharge
from liability. As a basis for our opinion on the Board of Directors’ proposed appropriationsof the company’s profit or loss we examined the Board of Directors’ reasoned statement anda selection of supporting evidence in order to be able to assess whether the proposal is inaccordance with the Companies Act.
The auditor’s examination of the ESEF report
OpinionIn addition to our audit of the annual accounts and consolidated accounts, we have also
examined that the Board of Directors and the Managing Director have prepared the annual
accounts and consolidated accounts in a format that enables uniform electronic reporting(the Esef report) pursuant to Chapter 16, Section 4 a of the Swedish Securities Market Act(2007:528) for Skanska AB (publ) for the financial year 2023.
Our examination and our opinion relate only to the statutory requirements.
In our opinion, the Esef report has been prepared in a format that, in all material respects,
enables uniform electronic reporting.

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

213

Basis for opinion
We have performed the examination in accordance with FAR’s recommendation RevR 18
Examination of the Esef report. Our responsibility under this recommendation is described in
more detail in the Auditors’ responsibility section. We are independent of Skanska AB (publ) in
accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our
ethical responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of theEsef report in accordance with the Chapter 16, Section 4 a of the Swedish Securities Market Act(2007:528), and for such internal control that the Board of Directors and the Managing Director
determine is necessary to prepare the Esef report without material misstatements, whether due
to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance whether the Esef report is in all material
respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of theSwedish Securities Market Act (2007:528), based on the procedures performed.
RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that theEsef report is prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance, but it is not a guarantee that an
engagement carried out according to RevR 18 and generally accepted auditing standards in
Sweden will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of the Esef report.
The audit firm applies ISQM 1 Quality Management for Firms that Perform Audits or Reviewsof Financial Statements, or other Assurance or Related Services Engagements which requires
the firm to design, implement and operate a system of quality management, including policies
and procedures regarding compliance with professional ethical requirements, professional
standards and applicable legal and regulatory requirements.

The examination involves obtaining evidence, through various procedures, that the Esef reporthas been prepared in a format that enables uniform electronic reporting of the annual andconsolidated accounts. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement in the report, whether due to fraud or
error. In carrying out this risk assessment, and in order to design audit procedures that areappropriate in the circumstances, the auditor considers those elements of internal control thatare relevant to the preparation of the Esef report by the Board of Directors and the Managing
Director, but not for the purpose of expressing an opinion on the effectiveness of thoseinternal controls. The examination also includes an evaluation of the appropriateness andreasonableness of assumptions made by the Board of Directors and the Managing Director.
The procedures mainly include a validation that the Esef report has been prepared in a valid
XHTML format and a reconciliation of the Esef report with the audited annual accounts andconsolidated accounts.
Furthermore, the procedures also include an assessment of whether the consolidated statementof financial performance, financial position, changes in equity, cash flow and disclosures inthe Esef report have been marked with iXBRL in accordance with what follows from the Esef
regulation.
The auditor´s opinion regarding the statutory sustainability report
The Board of Directors is responsible for the statutory sustainability report on pages 16, 48, 61,
63–78, 99–105 and 130–133 and that it is prepared in accordance with the Annual Accounts Act.
Our examination has been conducted in accordance with FAR’s auditing standard RevR 12 The
auditor´s opinion regarding the statutory sustainability report. This means that our examinationof the statutory sustainability report is different and substantially less in scope than an audit
conducted in accordance with International Standards on Auditing and generally accepted
auditing standards in Sweden. We believe that the examination has provided us with sufficientbasis for our opinion.
A statutory sustainability report has been prepared.
Ernst & Young AB, Box 7850, 103 99 Stockholm, was appointed auditor of Skanska AB by thegeneral meeting of the shareholders on March 29, 2023 and has been the company’s auditor
since the 2016.

Stockholm March 5, 2024
Ernst & Young AB

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Rickard Andersson
Authorized Public Accountant

Contents

Group overview

Annual and Sustainability Report 2023

214

Auditor´s limited assurance report on Skanska AB´s greenhouse gas, health and safety, energy, and waste reporting

Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management

This is the translation of the auditor´s report in Swedish. To Skanska AB, corp id 556000-4615
Introduction
We have been engaged by the Board of Directors of Skanska AB (publ) (“Skanska”) to undertakea limited assurance engagement of the information specified below (the “Subject Matters”) in
Skanska´s Annual and Sustainability report 2023. The company has defined the scope of the
Subject Matters on page 78 in this document.

Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

The Sustainability information reviewed is limited to the following GRI Disclosures:• Greenhouse gas emissions (p. 46–52, 68)- Direct GHG emissions (Scope 1)- Energy indirect GHG emissions (Scope 2)-O ther indirect GHG emissions (Scope 3)• Health and safety (p. 60–62, 69)• Energy (p. 68)• Waste (p. 52, 68)• Reporting principles related to above areas (p. 78)

The audit firm applies ISQM 1 (International Standard on Quality Management), which requiresthat we design, implement and operate a system of quality management including policies
or procedures regarding compliance with ethical requirements, professional standards andapplicable legal and regulatory requirements. We are independent in relation to Skanska AB inaccordance with professional ethics for accountants in Sweden and have otherwise fulfilled our
professional ethical responsibility in accordance with these requirements.
The procedures performed in a limited assurance engagement do not enable us to obtainsuch assurance that we would become aware of all significant matters that could have been
identified if an audit was performed.

Our assurance does not extend to any other information in Skanska´s Annual and Sustainability
report 2023, and accordingly, we do not express a conclusion on this information.

The conclusion based on a limited assurance engagement, therefore, does not provide thesame level of assurance as a conclusion based on an audit.

Responsibilities of the Board and Executive Management
The Board of Directors and the Executive Management are responsible for the preparationof the greenhouse gas, health and safety, energy and waste reporting in accordance with theapplicable Criteria, as explained on page 78 in Skanska´s Annual and Sustainability report
2023 and that consists of the Greenhouse Gas Protocol, and GRI (Global Reporting Initiative)
Standard 403: Occupational health and safety, GRI Standard 302: Energy, and GRI Standard
306: Waste which are applicable to the Subject Matters, as well as the accounting andcalculation principles that the company has developed. This responsibility includes the internal
control relevant to the preparation of the reporting that is free from material misstatements,
whether due to fraud or error.

Our procedures are based on the criteria defined by the Board and Executive Management as
described above. We consider these criteria suitable for the preparation of the Subject Matters.

Responsibilities of the auditor
Our responsibility is to express a conclusion on the presentation of the Subject Mattersbased on the limited assurance procedures we have performed. Our engagement is limited tohistorical information presented in this document and does therefore not include future oriented
information.
We conducted our limited assurance procedures in accordance with the ISAE 3000 (revised)
Assurance Engagements Other Than Audits or Reviews of Historical Financial Information.
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A limited assurance engagement consists of making inquiries, primarily of persons responsible
for the preparation of the presentation of the greenhouse gas, health and safety, energy, andwaste reporting and related information and applying analytical and other limited assurance
procedures. A limited assurance engagement has a different focus and a considerably smaller
scope compared to the focus and scope of an audit in accordance with International Standards
on Auditing and generally accepted auditing standards in Sweden.

We believe that the evidence obtained is sufficient and appropriate to provide a basis for ourconclusion below.
Conclusion
Based on the limited assurance procedures performed, nothing has come to our attention thatcauses us to believe that the greenhouse gas, health and safety, energy, and waste reportingfor the financial year ending on 31 December 2023 is not, in all material aspects, prepared inaccordance with the specified criteria.
Stockholm March 5, 2024
Ernst & Young AB
Rickard Andersson
Authorized Public Accountant

Marianne Förander
Expert member of FAR

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Group overview
Operations

Annual and Sustainability Report 2023

215

GRI Index
Disclosure

Page

2-1

Organizational details

Note 4, note 64, 222

2-2

Entities included in the organization’s sustainability reporting

78, 85

No deviation from financial reporting.

2-3

Reporting period, frequency and contact point

78

Reporting period: January 1, 2023 – December 31, 2023
Date of publication: March 6, 2023
Contact point: Christian Jakobsson, VP Sustainability/
EHS Management & Reporting
Antonia Junelind, SVP Investor Relations

Corporate governance

2-4

Restatements of information

68, 782-5

External assurance

2, 214

Remuneration report

2-6

Activities, value chain and other business relationships

23 –38, 44, 63–64

Supply chain is managed at BU level. Ongoing activities
on Group level to develop processes for supply chain due
diligence and consolidation of data.

2-7

Employees

70, 78The type of employment is not reported.

2-8

Workers who are not employees–

Managed at BU level and the data is not consolidated at
Group level. Subcontractors’ accidents are monitored at
Group level.

2-9Governance structure and composition

80–91

2-10

Nomination and selection of the highest governance body

80–85

2-11

Chair of the highest governance body81, 832-12

Role of the highest governance body in overseeing the management of impacts

80–89, 66–67

2-13

Delegation of responsibility for managing impacts

80–89, 66–67

2-14

Role of the highest governance body in sustainability reporting

80–89, 66–67

2-15

Conflicts of interest

80–89, 63 –64

2-16

Communication of critical concerns

64, 66, 69 –70

2-17

Collective knowledge of the highest governance body

80–91

2-18

Evaluation of the performance of the highest governance body

80–89

2-19

Remuneration policies

94–98

2-20

Process to determine remuneration

94–98

2-21

Annual total compensation ratio

97–98, note 37

2-22

Statement on sustainable development strategy

8–9

2-23

Policy commitments

43–44, 63–64, 66–67

2-24

Embedding policy commitments

43–44, 63–64, 66–67

2-25

Processes to remediate negative impacts

63–64, 66–67

2-26

Mechanisms for seeking advice and raising concerns

64

2-27

Compliance with laws and regulations

80, note 33

2-28

Membership associations

44, 672-29

Approach to stakeholder engagement

43, 66–67

2-30

Collective bargaining agreements–

Sustainability reportGRI Standard

Highlights 2023

General Disclosures

ClimateGRI 2:
General Disclosures
2021

Resilience
Responsibility
Sustainability information
GRI index

Risk and opportunity management
Financial information

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Omission/Comments

The data is not disclosed.

A selection of memberships are reported.
The data is not consolidated at Group level.

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Annual and Sustainability Report 2023

216

Group overview
Operations
Sustainability report
Highlights 2023
ClimateResilience
Responsibility
Sustainability information

GRI Standard

Disclosure

Page

3-1

Process to determine material topics

43, 66–67

3-2

List of material topics

43

3-3

Management of material topics

43, 47–52, 66–67,
78

302-1

Energy consumption within the organization

68, 78

Steam and self-generated electricity are notconsolidated at Group level.

302-2

Energy consumption outside of the organization

68, 78Energy consumption is not disclosed.
Expected energy consumption is used
to calculate emissions from use of soldproducts.

302-3

Energy intensity

68, 78302-4

Reduction of energy consumption

68, 78302-5

Reductions in energy requirements of products andservices51, 783-3

Management of material topics

43–52, 66–67, 78

305-1

Direct (Scope 1) GHG emissions

68, 78305-2

Energy indirect (Scope 2) GHG emissions

68, 78305-3

Other indirect (Scope 3) GHG emissions

68, 78305-4

GHG emissions intensity

68, 78305-5

Reduction of GHG emissions

49, 68, 78

SASB

SDG

UN Global Compact

ClimateGRI 3: Material
Topics 2021
GRI 302: Energy 2016

GRI index

Corporate governance
Remuneration report
Risk and opportunity management
Financial information
GRI 305: Emissions 2016

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Omission/Comments

Material Topics

IF-EN-160a.2 , IF-EN-410a.1,
IF-EN-410a.2

Principle 7, Environment:
Businesses should support
a precautionary approach toenvironmental challenges.
Subtargets:
8.4

Subtargets:
13.1

IF-EN-160a.2 , IF-EN-410a.1,
IF-EN-410a.2

Principle 9, Environment:
Businesses should encourage
the development and diffusionof environmentally friendly
technologies.

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Annual and Sustainability Report 2023

217

Group overview
Operations
Sustainability report
Highlights 2023
ClimateGRI Standard

DisclosurePage

GRI 205: Anti-Corruption
2016

Responsibility

3-3Management of material topics

63–64, 66–67

IF-EN-510a.3

205-2

Communication and training about anti-corruption
policies and procedures

69, 78

IF-EN-510a.3

205-3

Confirmed incidents of corruption and actions taken

64, note 33

Management of material topics

63–64

IF-EN-510a.3

206-1

Legal actions for anti-competitive behavior, anti-trust, Note 33
and monopoly practices

IF-EN-510a.2

3-3

Management of material topics

66–67

IF-EN-160a.2

306-1

Waste generation and significant waste-related
impacts

52, 78306-2Management of significant waste-related impacts

52, 78306-4

Waste diverted from disposal

68

Management of material topics

63–64, 66–67

Sustainability information
GRI 206: Anti-competitive 3-3
behavior 2016

Corporate governance
Remuneration report

GRI 306: Waste 2020

Risk and opportunity management
Financial information

GRI 308: Supplier3-3
environmental assessment
2016
308-1

GRI 403: Occupational
Health and Safety 2018

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SASB

SDG

UN Global Compact

Responsibility

Resilience

GRI index

Omission/Comments

New suppliers that were screened using environmental 63–64
criteria

3-3Management of material topics

403-1

Occupational health and safety management system 61–62

403-2

Hazard identification, risk assessment, and incident
investigation

61–62

403-3

Occupational health services

62

403-4

Worker participation, consultation, andcommunication on occupational health and safety

61–62, 69–70

403-5

Worker training on occupational health and safety

61–62

403-6

Promotion of worker health

61–62

403-7

Prevention and mitigation of occupational healthand safety impacts directly related to business
relationships

61–64

403-8

Workers covered by an occupational health and safety 61
management system

403-9Work-related injuries

Not broken down by employee category,business partner or region.

IF-EN-510a.2

Subtargets:
8.5
8.7
8.8

Limited to % of self-generated waste to landfill.
Hazardous waste is not reported. Ongoing
quality assurance for waste data disclosure
on Group level.
IF-EN-160a.2

Supply chain is managed at BU level. The
percentage of screened suppliers is notconsolidated at Group level. Ongoing activities
on Group level to develop processes for supply
chain due diligence and consolidation of data.

Principle 2, Human rights:
Businesses should make sure thatthey are not complicit in humanrights abuses.
Principle 3, Labor:Businesses should uphold thefreedom of association and theeffective recognition of the right tocollective bargaining.
Principle 4, Labor:Businesses should uphold theelimination of all forms of forced andcompulsory labor.

Subtargets:
11.6

Subtargets:
12.2
12.4
12.5

61–62, 66–67

69

Subtargets:
5.1
5.5

Principle 1, Human rights:
Businesses should supportand respect the protection ofinternationally proclaimed humanrights.

Principle 5, Labor:Businesses should uphold theeffective abolition of child labor.
Principle 6, Labor:Businesses should uphold theelimination of discriminationin respect of employment andoccupation.
Principle 8, Environment:
Businesses should undertake
initiatives to promote greater
environmental responsibility.

Subtargets:
16.5

The number of hours and rate of recordable
work-related injuries is not reported.

IF-EN-320a.1

Principle 10, Anti-corruption:
Businesses should work against
corruption in all its forms, including
extortion and bribery.

Contents

Annual and Sustainability Report 2023

218

Group overview
Operations
Sustainability report
Highlights 2023

GRI Standard

Responsibility

GRI 406: Nondiscrimination 2016

Sustainability information
GRI index

Corporate governance
Remuneration report
Risk and opportunity management

Page

3-3

Management of material topics

65 –67405-1

Diversity of governance bodies and employees

65, 703-3Management of material topics

63 –67406-1

Incidents of discrimination and corrective actions
taken

64

3-3

Management of material topics

63 –64, 66 –67

409-1

Operations and suppliers at significant risk forincidents of forced or compulsory labor

63–64

3-3

Management of material topics

63 –64, 66 –67

414-1

New suppliers that were screened using social criteria 63–64

SoD-1

Value of certified commercial buildings

Omission/Comments

SASB

SDG

Responsibility cont.
GRI 405: Diversity andEqual Opportunity 2016

ClimateResilience

Disclosure

GRI 409: Forced orcompulsory labor 2016

GRI 414: Supplier Social
Assessment 2016

Financial information

Age groups are not reported.

Number and type of action are not reported.

Supply chain is managed at BU level. The
percentage of screened suppliers is notconsolidated at Group level. Ongoing activities
on Group level to develop processes for supply
chain due diligence and consolidation of data.

Sustainable industry
Skanska’s own disclosure

48

IF-EN-410a.1

Subtargets:
9.1
9.4

Subtargets:
11.1
11.2
11.3
11.6
11.7

Unmapped SASB metrics

Download PDF for print

IF-EN-160a.1; IF-EN-250a.1-2; IF-EN-410b.2-3;
IF-EN-000.A-B

No Group level disclosure

IF-EN-410b.1

Page 71–75

IF-EN-510a.1

Zero

IF-EN-000.C

108

UN Global Compact

Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

219

Quarterly information
2023

In accordance with IFRSSEK M
Order bookings

2022

Q3

Q2

Q1

Q4

Q3

Q2

Q1

44,13732,65963,152

25,84751,607

43,821

37,27029,967

Remuneration report

ProfitRevenue

46,15742,24442,29236,47542,362

43,22942,55135,032

Risk and opportunity management

Cost of sales-42,914-39,284-37,964-33,708-37,412-38,706-38,149-32,216Gross income

3,243

2,959

4,328

2,767

4,950

4,523

4,402

2,816

Financial information

Selling and administrative expenses-2,509-2,340-2,274-2,262-2,720-2,003-2,244-2,031

Financial analysis

Change in value, investment properties

200

0

-25

0

1,327

0

8

357

Financial statements

Income from joint ventures andassociated companies

739

201

166

90

297

235

53

51

1,673

820

2,194

594

3,854

2,755

2,220

1,193

Notes
Auditor’s report

Operating income
Interest income

196

210

148

158

158

109

54

34

Auditor’s review report of the sustainability report

Interest expense

-3

-42

-3

-2

43

-27

-21

-43

Quarterly information

Change in market value

35

-1

1

2

2

4

-4

2

Share data

Other financial items

-53

- 13

- 12

- 10

-1

-16

-17

14

Financial items

175

152

134

147

202

69

11

8

Income after financial items

1,849

973

2,328

742

4,056

2,824

2,231

1,200

Income taxes

-188

- 152

- 376

- 145

-789

-548

-455

-235

Profit for the period

1,661

821

1,952

596

3,267

2,276

1,776

965

Annual General Meeting
Investors’ calendar and addresses

parent company shareholders

SEK M

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Translation differences attributable toequity holders-1,750

-447

1,316

-67

-561

1,038

1,173

641

Translation differences attributable tonon-controlling interests

-7

-9

6

6

5

3

3

4

Hedging of exchange rate risk in foreign
operations

-39

-7

25

-2

-18

28

53

17

Effect of cash flow hedges

28

-63

11

16

47

3

41

17

Share of other comprehensive incomeof joint ventures and associatedcompanies

-51

18

14

-10

1

17

72

89

Items that have been or will bereclassified to profit or loss for theperiodTax related to items that have been or
will be reclassified to profit or loss forthe period

-5

16

0

1

-10

1

-9

-1

-1,824

-491

1,372

-56

-536

1,090

1,332

767

Other comprehensive income after
tax for the period-2,982

-163

1,813

542

-377

2,370

2,204

1,481

Comprehensive income for the period-1,321

657

3,764

1,138

2,891

4,646

3,980

2,446

1,659

808

1,941

590

3,261

2,267

1,765

963

1

12

11

6

6

9

11

2

-1,315

654

3,747

1,126

2,880

4,634

3,966

2,441

-6

4

18

12

11

12

14

6

parent company shareholders non-controlling interests

Other comprehensive income

Order backlog1

229,637 239,663 250,303

217,894

229,771

227,935

215,452

207,607

Items that will not be reclassified to
profit or loss for the period

Capital employed

77,36074,23475,27370,727

72,84571,76567,95064,791

Interest-bearing net receivables/net
liabilities

9,037

5,061

3,758

8,406

10,306

12,7697,719

11,088

Debt/equity ratio

-0.2

-0.1

-0.1

-0.2

-0.2

-0.2

-0.2

-0.3

Return on capital employed, %

8.2

11.2

13.9

14.1

15.2

13.5

11.8

12.9

-2,020Remeasurement of defined-benefit
pension plans
Tax related to items that will not bereclassified to profit or loss for theperiod-1,447

404

549

767

202

1,622

1,066

928

289

-76

-109

-168

-42

-342

-194

-214

-1,158

328

440

599

160

1,280

872

715

Cash flow
Cash flow from operating activities

5,445

891

-1,015-2,115-1,614

3,881

262

Cash flow from investing activities

1,393

982

1,148

2,475

-348

490

-2,121

6,826

Cash flow from financing activities

4,007-1,269-3,468

-526

-995

-922

-1,129-3,484

Cash flow for the period

10,846604-3,335-166-2,956

3,449-2,987

1,321

1 Refers to Construction.

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2022

Q4

Comprehensive income for the period
attributable toProfit for the period attributable to non-controlling interests2023

In accordance with IFRS

Q4Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

220

Quarterly information, continued

Business streams
2023

In accordance with IFRS
SEK M

Q4

Q3

2022
Q2

Q1

Q4

Q3

2023

According to segment reporting
Q2

Q1

Order bookings

SEK M

Q4

Q3

2022
Q2

Q1

Q4

Q3

Q2

Q1

Order bookings

Construction

44,13732,65963,152

25,84751,607

43,821

37,27029,967

Construction

44,13732,65963,152

25,84751,607

43,821

37,27029,967

Total

44,13732,65963,152

25,84751,607

43,821

37,27029,967

Total

44,13732,65963,152

25,84751607

43,821

37,27029,967

Construction

41,61240,91740,58437,52442,73240,17439,71233,387

Construction

41,61240,91740,58437,52442,73240,17439,71233,387

Financial analysis

Residential Development

3,662

2,727

2,974

2,202

2,572

2,646

2,396

1,907

Residential Development

1,867

911

1,649

586

784

1,468

2,926

3,573

Financial statements

Commercial Property Development

5,308

1,463

1,881

248

3,658

3,776

3,908

3,727

Commercial Property Development

2,832

1,375

857

267

3,443

327

5,666

4,840

Notes

Investment Properties

Remuneration report
Risk and opportunity management
Financial information

Auditor’s report
Auditor’s review report of the sustainability report

Revenue

Revenue

55

44

45

41

20

10

10

56

44

45

41

20

10

10

Central and Eliminations-4,480-2,908-3,191-3,540-6,619-3,377-3,475-3,989Central and Eliminations-4,480-2,900-3,194-3,540-6,628-3,377-3,475-3,989Total

46,15742,24442,29236,47542,362

43,22942,55135,032

Total

41,88640,34839,94034,87840,35038,603

44,83837,811

Investment Properties

Quarterly information

Operating income

Share data

Construction

1,843

1,365

1,391

1,033

2,305

1,348

1,360

756

Construction

1,843

1,365

1,391

1,033

2,305

1,348

1,360

756

Annual General Meeting

Residential Development

-170

-211

402

-81

402

493

310

140

Residential Development

-502

-494

49

-314

-16

130

332

445

Commercial Property Development

-570

-307

406

-144

1,293

731

680

545

Commercial Property Development

-932

-277

-15

-142

1,350

-17

834

856

Investment Properties

-129

31

6

30

100

7

8

25

Investment Properties

-129

31

6

30

100

7

8

25

Central

607

-85

-73

-159

-160

112

-155

-135

Central

607

-85

-73

-159

-160

112

-155

-135

877

193

138

72

124

202

37

33

877

193

138

72

124

202

37

33

92

26

63

-85

-86

63

17

-139

Eliminations

69

9

-27

-54

-49

-61

18

-95

1,673

820

2,194

594

3,854

2,755

2,220

1,193

Total

957

549

1,331

394

3,530

1,518

2,397

1,852

Investors’ calendar and addressesof which PPP sales
Eliminations
Total

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Operating incomeof which PPP sales

Contents

Group overview
Operations
Sustainability report
Corporate governance

Annual and Sustainability Report 2023

221

Skanska share data
Skanska’s Class B shares are quoted and traded on Nasdaq Stockholm.
Skanska’s market capitalization was SEK 77 billion on December 31, 2023.

Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Share price performance
The Skanska share price (SKAB)¹ increased by
9 percent in 2023. The OMX Stockholm Index
increased by 13 percent and the DJ Construction& Materials Titans Index increased by 31 percent
during the same period. The closing price ofSkanska’s Class B share was SEK 182.35.
The year high in 2023 was SEK 195.00 on
February 2, and the year low was SEK 141.60
on June 22. Total shareholder return for
Skanska’s Class B share for 2023 was
16 percent compared to 19 percent for the
OMX Stockholm Index and 38 percent for
DJ Construction & Materials Titans Index.

Dividend
Pursuant to our dividend policy, 40–70
percent of profit for the year is paid out as
dividends to shareholders, provided that thecompany’s overall financial status is stable
and satisfactory.

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5.50

Proposed dividend per share,
SEK, 2023

7.89

For the 2023 financial year, the Board of
Directors proposes a dividend of SEK 5.50
(7.50) per share. This represents a pay-out
ratio of 70 percent, corresponding to
SEK 2,256 M (3,083). No dividend is paid out
for the parent company’s holdings of Class B
treasury shares. The total dividend amount

History Skanska share
Year-end share price, SEK
Year-end market capitalization, SEK bn
Number of shares, million²of which Class B shares in Skanska’s
own custody, million
Highest share price during the year, SEK
Lowest share price during the year, SEK
Yield, percent³
Earnings per share⁴, SEK
Regular dividend per share, SEK
Dividend pay-out ratio⁶, %may change by the record date, depending
on share repurchases and transfers toparticipants in Skanska’s long-term employee
ownership program, Seop.

Earnings per share, SEK, 2023

Total return on Skanska’s Class B share compared to indexes
2023

2022

2021

2020

2019

182.35
76.6
419.9
9.7

165.00
69.3
419.9
8.8

234.20
98.3
419.9
7.7

209.70
88.1
419.9
7.6

211.70
88.9
419.9
8.4

195.00141.60
3.0
7.89
5.50⁵
70

245.00134.40
4.5
18.62
7.50
40

258.80203.30
4.3
19.80
10.00
51

238.90146.00
4.5
22.46
9.50
42

216.00140.85
1.5
15.46
3.25
21

1 Bloomberg ticker SKAB:SS, Reuters quote SKAb.ST.
2 Number of shares at year-end including the parent company’s holdings of Class B treasury shares.
3 Dividend as a percentage of respective year-end share price.
4 Earning per share according to segment reporting divided by the number of shares outstandning.
5 Based on the dividend proposed by the Board of Directors.
6 Dividend as a percentage of earnings per share.
7 Strategic Benchmark Index (SBI) consists of listed companies, that, taken together, reflects Skanska’s operations.

Index 100
250
200
150
100
50
0
12-30-2018

12-30-2019

12-30-2020

OMX Stockholm GI Index
Skanska B
DJ Construction & Materials Titans Index
SBI712-30-2021

12-30-2022

12-30-2023

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report

Annual and Sustainability Report 2023

222

Skanska share data, cont.

Shareholder structure
73 percent of the share capital is owned
by investors registered in Sweden and 27
percent by foreign investors. The USA and
Norway account for the highest percentage ofshareholders registered outside Sweden.

At year-end, the parent company (Skanska AB)
held 9,713,560 Class B shares, corresponding
to 2.3 percent of the capital stock.

Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Shareholder structure
Holding
1–1,000
1,001–10,000
10,001–20,000
20,001–
Anonymous holding
Total

No. of shareholders
100,737
15,558727
684
117,706

No. of shares
22,422,027
42,891,698
10,310,549
295,352,688
48,926,110
419,903,072

Capital (%)
5.3
10.2
2.5
70.3
11.7
100

Votes (%)
3.8
7.5
2.0
78.5
8.2
100

Class B
400,283,130

Total
419,903,072

Share distribution
Number of registered sharesClass A
19,619,942

Liquidity
Cboe Global markets (Chicago Board Options Exchange) represents 59 percent oftrade in the Skanska share, where off-bookcrosses or block trades and OTC trading
stand for the majority of trades. Trading on
the primary market, Nasdaq, represents 26
percent of traded volume.

In 2023, total trading in the Skanska shareamounted to 789 million shares (776)
at a total value of SEK 131 billion (141),
corresponding to an average daily turnoverof 3.1 million shares (3.0) or SEK 500 M per
trading day.

Ownership per country

Ownership per marketplace
Sweden, 73%
USA, 13%
Norway, 4%Finland, 1%
UK, 1%
Japan, 1%
Other countries, 7%

Cboe, 59%
Nasdaq, 26%
LSE Group, 12%
Aquis Stock Exchange, 2%
Other markets, 1%During 2023, 34,374 Class A shares were converted into Class B shares at the request of shareholders.
The total number of votes in the company subsequently amounted to 596,482,550.

Largest shareholders in Skanska AB by voting power, December 31, 2023
Shareholder

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Industrivärden AB
Lundberg GroupAMF Insurance & Funds
Skanska-employees through Seop¹
Vanguard
SHB Funds & Life InsuranceBlackRock
Carnegie Funds
Norges Bank
Folksam10 largest shareholders in Skanska
Other shareholders in Skanska
Totalof which shareholders in Swedenof which shareholders abroad
1 Not treated as a unified ownership group.

% of voting
power
24.5
13.2
5.6
4.4
2.3
2.0
2.0
1.9
1.4
1.2
58.5
41.5
100
80.7
19.3

% of capital
stock
7.7
5.9
7.9
6.2
3.2
2.8
2.8
2.6
2.0
1.7
42.9
57.1
100
72.6
27.4

Ratings and indexes
In addition to indexes directly linked to Nasdaq Stockholm, we are also
included in other indexed and ratings.
• CDP Climate A• MSCI BBB• FTSE4Good Sustainability Index

Source: Monitor av Modular Finance AB. Compiled and processed data from, inter alia, Euroclear, Morningstar and Finansinspektionen

Contents

Group overview
Operations
Sustainability report
Corporate governance
Remuneration report
Risk and opportunity management
Financial information
Financial analysis
Financial statements
Notes
Auditor’s report
Auditor’s review report of the sustainability report
Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

Annual and Sustainability Report 2023

Annual General Meeting
The Annual General Meeting (the Meeting) of Skanska AB (publ) (the Company) will be held on Wednesday March 27,2024 at 10.00 am CET at Stockholm Waterfront Congress Centre, Nils Ericsons Plan 4, Stockholm, Sweden. Registration
will begin at 9.00 am CET. Shareholders will also have the opportunity to exercise their voting rights by postal voting prior to
the Meeting.
Right to participate and notice of participation
Shareholders who wish to participate in the Meeting must be recorded as a shareholder in the share register prepared by
Euroclear Sweden AB (“Euroclear”) concerning the circumstances on Tuesday March 19, 2024.
In addition, shareholders must notify of its intention to participate in the Meeting:A) S hareholders who wish to participate in the Meeting at the meeting venue in person or by proxy must give noticeof intent to participate to the Company no later than on Thursday March 21, 2024, via Euroclear’s website,
https://anmalan.vpc.se/euroclearproxy, or by writing to Skanska AB (publ), Årsstämman, c/o Euroclear Sweden AB,
Box 191, SE–101 23 Stockholm, Sweden or by telephone +46 (0)8 402 92 81 on weekdays between 9.00 am and 4.00
pm CET. When giving notice of participation, please state name, personal identification number or corporate identity
number, address, telephone number and, if applicable, the number of attending counsels (no more than two).
B) S hareholders who wish to participate in the Meeting by postal voting must give notice of intent to participate to theCompany no later than on Thursday March 21, 2024, by casting its postal vote in accordance with the instructions under
the heading Postal voting below so that the postal vote is received by Euroclear no later than that day.
In order to be entitled to participate in the Meeting, in person, by proxy or by postal voting, a shareholder whose shares areregistered in the name of a nominee must, in addition to giving notice of participation in the Meeting, register its sharesin its own name so that the shareholder is listed in the share register as of Tuesday March 19, 2024. Such re-registration
may be temporary (so-called voting rights registration), and request for such voting rights registration shall be made to thenominee, in accordance with the nominee’s routines, at such a time in advance as required by the nominee. Voting rights
registrations that have been made by the nominee no later than Thursday March 21, 2024, will be taken into account in thepresentation of the share register.
Postal voting
A special form must be used for postal voting, which is available on the Company’s website www.group.skanska.com/,under the heading Corporate Governance/Shareholders’ Meeting/AGM 2024. In the case of postal voting only, no
separate notification is required for the Meeting. The completed and signed postal voting form must be received by
Euroclear no later than Thursday March 21, 2024. Shareholders may sign the form electronically by verifying withBankID via Euroclear’s website, https://anmalan.vpc.se/euroclearproxy. The completed form may also be sent by
e-mail to GeneralMeetingService@euroclear.com or be posted to the address Skanska AB (publ), Årsstämman,
c/o Euroclear Sweden AB, Box 191, SE-101 23 Stockholm, Sweden. Shareholders may not assign specific instructions orconditions to the postal vote. The postal voting form will be deemed to be invalid in its entirety in such case. Additional
instructions and conditions are provided in the postal voting form.
Shareholders wishing to attend the Meeting at the meeting venue in person or by proxy must notify their participation inaccordance with the instructions under A) under the heading Right to participate and notice of participation above. Thismeans that notification of participation by postal vote only is not sufficient for those who wish to participate at the meetingvenue in person or by proxy.
If a shareholder has voted by post and thereafter participates in the meeting venue in person or by proxy, the postal voteis still valid to the extent that the shareholder does not participate in a voting procedure at the Meeting or otherwise
withdraws the postal vote. If the shareholder chooses to participate in a voting at the Meeting, the vote cast will replace thepreviously submitted postal vote with regard to the relevant item on the agenda.

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223

Voting by proxy
Shareholders who are represented by a proxy must issue a written and dated power of attorney for the proxy signed by theshareholder. If the shareholder is a legal entity, a copy of a valid registration certificate or equivalent authorization documents must also be attached. The power of attorney with registration certificate or equivalent authorization documents (ifapplicable) should be sent to the address Skanska AB (publ), Årsstämman, c/o Euroclear Sweden AB, Box 191, SE-101 23
Stockholm, Sweden, or via e-mail to GeneralMeetingService@euroclear.com, well in advance of the Meeting. If a postal
vote takes place with the support of a power of attorney, the power of attorney with registration certificate or equivalentauthorization documents (if applicable) must be attached to the postal voting form and should be sent in accordance with
the instructions under the heading Postal voting above.
Proxy forms can be found on the Company’s website www.group.skanska.com/ under the heading Corporate Governance/
Shareholders’ Meeting/AGM 2024. The power of attorney is valid for a maximum of one year from the date of issue, unlessthe power of attorney states a longer period of validity, however, for a maximum of five years from the time of issue.
Dividend and record date
The Board of Directors (the Board) proposes a dividend for 2023 of SEK 5.50 (7.50) per share. The Board proposes Tuesday,
April 2, 2024 as the record date to receive the dividend. If the Meeting resolves in accordance with the Board’s proposal, thedividend is expected to be distributed by Euroclear on Friday April 5, 2024. The proposed dividend amounts to SEK 2,256 M(3,081) in total. No dividend is paid for the Company’s holding of Class B treasury shares. The total dividend may change
up to the time of the record date, depending on the acquisition of Class B treasury shares and transfer of Class B shares toparticipants in the Company’s long-term share saving programs.
Notice, etc.
All documents for the Meeting are available at the Company’s offices, Warfvinges väg 25, SE-112 74 Stockholm, Sweden,
and on the Company’s website www.group.skanska.com/, under the heading Corporate Governance/Shareholders’Meeting/AGM 2024. The documents will also be sent to shareholders who so request and state their address.
Information at the Meeting
If requested by a shareholder and the Board deems that it can take place without causing significant damage to theCompany, the Board and the President and CEO shall provide information at the Meeting about circumstances that may
affect the assessment of an item on the agenda and circumstances that may affect the assessment of the Company’s or its
subsidiaries’ financial position and the Company’s relation to other Group companies.

Contents

Annual and Sustainability Report 2023

224

Investors

Addresses

Sustainability report

Calendar
The Group’s interim reports will be published on the following dates:

Corporate governanceInterim report first quarterMay 8, 2024

Remuneration report

Interim report second quarter

July 19, 2024

Skanska AB (publ)
SE–112 74 Stockholm
SwedenStreet address: Warfvinges väg 25
Tel: +46 (0)10 448 00 00
group.skanska.com

Risk and opportunity management

Interim report third quarter

November 6, 2024

Financial information

Year-end Report		

February 7, 2025

Group overview
Operations

Financial analysis
Financial statements
Notes

Distribution and other information
The interim reports and annual reports can be read or downloaded on Skanska’s website group.skanska.com/investors.

Auditor’s report

Those wishing to order the printed Annual Report can easily use the order form found on the above website, or contact
Skanska AB, Investor Relations.

Auditor’s review report of the sustainability report

The website also contains an archive of interim reports and annual reports.

Quarterly information
Share data
Annual General Meeting
Investors’ calendar and addresses

facebook.com/skanska

Skanska Sweden
SE–112 74 Stockholm
SwedenTel: +46 (0)10 448 00 00
Customer service: +46 (0)20 30 30 40
skanska.se
Skanska Norway
Postboks 1175 Sentrum
NO-0187 Oslo
Street address: Lakkegata 53
NorwayTel: +47 40 00 64 00
skanska.no

linkedin.com/company/skanska
twitter.com/skanskagroup
If you have questions, please contact:
Skanska AB, Investor Relations
SE–112 74 Stockholm
Tel: +46 (0)10 448 00 00
email: investor.relations@skanska.se

Skanska Finland
Nauvontie 1800280 Helsinki
FinlandTel: +358 20 719 211
skanska.fi
Skanska Poland
Aleja “Solidarności” 173
PL-00-877 Warsaw
PolandTel: +48 22 561 30 00
skanska.pl
Skanska Czechia and SlovakiaKřižíkova 682/34a
186 00 Prague 8, Karlín
Czechia
Tel: +420 267 095 111
skanska.cz
skanska.sk
Skanska UK
1 Hercules Way
Leavesden
Watford
WD25 7GS
UK
Tel: +44 (0)1923 776 666
skanska.co.uk

Download PDF to print

Skanska USA
Empire State Building
350 Fifth Avenue, 32nd floor
New York, N.Y. 10118
USA
Tel: +1 917 438 4500
usa.skanska.com
Skanska USA Building
389 Interpace Parkway, 5th floor
Parsippany, NJ 07054
USA
Tel: +1 973 753 3500
usa.skanska.com
Skanska USA Civil
75–20 Astoria Boulevard
Suite 200
Queens, New York, N.Y. 11370
USA
Tel: +1 718 340 07 77
usa.skanska.com
Skanska Commercial Property Development Nordic
SE–112 74 Stockholm
SwedenTel: +46 (0)10 448 00 00
skanska.com/property
Skanska Commercial Property Development Europe
SE–112 74 Stockholm
SwedenTel: +46 (0)10 448 00 00
skanska.com/property
Skanska Commercial Property Development USA
Empire State Building
350 Fifth Avenue, 32nd floor
New York, N.Y. 10118
USA
Tel: +1 917 438 4514
usa.skanska.com
Skanska Financial Services
SE–112 74 Stockholm
SwedenTel: +46 (0)10 448 00 00
skanska.com
For other addresses:
group.skanska.com

More information on Skanska can be found at group.skanska.com

The Annual and Sustainability Report was created by:
Skanska AB in partnership with Narva Communications AB
Text: Skanska AB
Printed by: Larsson Offsettryck AB
Photos: Samuel Uneus, Erik Undéhn, Ivar Kvaal,
Eckert And Eckert Architectural Photography, Thomas Ärlemo,
Frida Marklund, Anton Renborg, John Massey, Rafal Tomczyk ,Victor Holm, Aleksander Malachowski, Lennart Johansson,
Kuvatoimisto Kuvio Oy, Martin Sommerschiel, Michał Kurzawa,Glázer Attila, Sandra Birgersdotter, Mikael Stenberg,
Digital First Marketing Group s.r.o., Jeff Goldberg
Images: The Port of Virginia
Illustrations: Hvass & Hannibal, Mike Ellis

Skanska AB (publ)
Warfvinges väg 25
SE–112 74 Stockholm, Sweden
Tel: +46 (0)10 448 00 00
group.skanska.com