Skanska continues on current path in the business plan 2016-2020

Skanska's home market strategy remains unchanged under the new business plan for 2016-2020 and project development will expand. The new plan includes high ambitions and goals, with the aim that Skanska should offer its shareholders the highest total return in the sector.

The construction business will grow in a controlled manner in its existing home markets and contribute both operationally and financially to the development streams, according to the existing business model. Project development will grow over the next five years and contribute with an equally large value creation as the construction units.

Skanska's commercial development business will expand through increased investments and infrastructure development will capitalize on the leverage within its business model. The residential development will be stable in the home markets.

Financial targets 2016-2020:

• Return on equity ≥ 18%
• Operating margin in construction ≥ 3.5%
• Return on investment ≥ 10% for all the project development units
• Dividend policy to pay out 40-70% of net profit

Net debt 2016-2020:

• If the right opportunities arise, Skanska can use leverage to take advantage of current low interest rate environment. Operating financial assets/liabilities, net, may then be allowed to become negative

For further information please contact:

Magnus Persson, Senior Vice President Investor Relations, Skanska AB, tel +46 (0)10-448 64 29

André Löfgren, Vice President Investor Relations, Skanska AB, tel +46 (0)10-448 13 63

Edvard Lind, Head of Media Relations, Skanska AB, tel +46 (0)10-448 88 08

This and previous releases can also be found at www.skanska.com

Skanska AB may be required to disclose the information provided herein pursuant to the Securities Markets Act.

Skanska is one of the world’s leading project development and construction groups with expertise in construction, development of commercial and residential premises, and public-private partnership projects. Based on its global green experience, Skanska aims to be the client’s first choice for green solutions. The group currently has 58,000 employees in selected home markets in Europe and the US. Skanska's sales in 2014 totaled SEK 145 billion.