Page 1

SKANSKA December 3 , 2021 07:30 am CET Press release Skanska launches the new business stream Investment Properties and revised financial targets for the Group Skanska has performed a strategic bottom - up process and introduces a new business stream , Investment Properties , and revised financial targets . The revisions consist of a target for the new stream and a new limit for the Group adjusted net debt . " To further capture the value created and stable cash flow generated by the properties developed in Commercial Property Development , we will launch the new stream Investment Properties . The ambition is to establish a long - term portfolio of high - quality assets in Stockholm , Gothenburg and Malmö , " says CEO and President Anders Danielsson . " These assets attain to high environmental standards , and the new stream will contribute to strengthen both our competitiveness and customer offering . " When a property is identified as suitable it will be divested internally from the Commercial Property Development stream to Investment Properties and will be accounted for at market value . The divestment will trigger a recognition of the value created in the Commercial Property Development stream . All transaction prices will be supported by third party valuations and the internal divestments will be announced externally . In the new stream , properties will be held at market value . Post transfer , additional value creation and the operating net will be recognized in the Investment Properties stream . The new stream will be externally reported with a separate income statement and KPIs that suitably reflects the business and will be incorporated into the consolidated reporting in the same manner as the other business streams . Accounting principles for the new business stream will be included in the Annual Report 2021 . Financial targets , starting 2022 Financial targets over time New Previous Construction stream : Operating margin ≥3.5 % ≥3.5 % Project Development streams : Return on capital employed ≥10 % ≥10 % Investment Properties : Return on capital employed ≥6 % N / A Group : Return on equity ≥18 % ≥18 % Group : Adjusted net debt limit SEK -10 Bn SEK -9 Bn Group : Pay - out ratio 40-70 % 40-70 %