Year-end report, January–December 2016

Skanska year-end report, January-December 2016 (compared to January-December 2015)

Highlights

- Revenue amounted to SEK 151.3 billion (154.9); adjusted for currency effects, revenue decreased 1 percent.

- Operating income amounted to SEK 8.2 billion (6.5); adjusted for currency effects, operating income increased by 27 percent. Impairments in Project Development amounted to about SEK 500 M. The comparable period includes writedowns in the Construction stream amounting to SEK 750 M.

- Earnings per share increased by 33 percent to SEK 15.89 (11.96).

- The Board of Directors proposes a dividend of SEK 8.25 (7.50) per share.

- Operating cash flow from operations amounted to SEK –1.2 billion (7.7).

- Operating net financial assets totaled SEK 10.6 billion (Sep. 30, 2016: 9.2).

- Order bookings in Construction amounted to SEK 170.2 billion (122.1); adjusted for currency effects, order bookings increased by 40 percent. The order backlog amounted to SEK 196.3 billion (Sep. 30, 2016: 191.6).

- Operating income in Construction amounted to SEK 3.5 billion (3.9), corresponding to an operating margin of 2.6 percent (2.8); adjusted for currency effects, operating income decreased by 7 percent.

- Operating income in Project Development amounted to SEK 5.8 billion (4.0); adjusted for currency effects, operating income increased by 44 percent.

- Return on capital employed in Project Development was 18.4 percent (14.9).

- Net divestments in Project Development amounted to SEK 0.8 billion (3.9).

This report will also be presented via a telephone conference and webcast at 8.30 a.m. (CET) on February 3. The telephone conference will be webcasted live at http://group.skanska.com/investors/ , where a recording of the conference will also be available later. To participate in the telephone conference, please dial +46 8 505 564 74, +44 2033 645 374, or +1 855 753 2230. This and previous releases can also be found at http://group.skanska.com/investors/ .

For further information, please contact:

Peter Wallin, Executive Vice President and CFO, Skanska AB, tel +46 10 448 8900

André Löfgren, Senior Vice President, Investor Relations, Skanska AB, tel +46 10 448 1363

Katarina Grönwall, Senior Vice President, Communications, Skanska AB, tel +46 10 448 8877

Edvard Lind, Group Press Officer, Skanska AB, tel +46 10 448 8808

The information provided herein is such as Skanska AB is obligated to disclose pursuant to the EU market securities act (EU) no. 596/2014.

About Skanska

Skanska is one of the world’s leading construction and project development companies, focused on selected home markets in the Nordic region, other European countries and North America. Supported by global trends in urbanization and demographics, and by being at the forefront in sustainability, Skanska offers competitive solutions for both simple and the most complex assignments, helping to build a sustainable future for customers and communities.

About Us

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 partnerships projects. Based on its global green experience, Skanska aims to be the clients' first choice for Green solutions. The Group currently has 41,000 employees in selected home markets in Europe and North America. Skanska's sales in 2016 totaled SEK 151 billion.

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