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 per cent
- Operating margin in construction ≥ 3.5 per cent
- Return on investment ≥ 10 per cent for all the project development units
- Dividend policy to pay out 40-70 per cent 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