The figures for the six month period:

• Revenue amounted to SEK 80.9 billion (79.5); adjusted for currency effects revenue decreased 3 percent.

• Operating income amounted to SEK 3.2 billion (1.9); adjusted for currency effects operating income increased 61 percent. Legal decisions impacted positively by SEK 0.4 billion.

• Earnings per share increased 65 percent to SEK 6.41 (3.89).

• Operating cash flow from operations amounted to SEK –2.5 billion (–0.3), according to IFRS.

• Adjusted interest-bearing net receivables(+)/net debt(–) totaled SEK –2.8 billion (March 31, 2019: 0.9), according to IFRS.

• Operating income in Construction amounted to SEK 1.6 billion (0.5). The comparable period includes restructuring charges and project write-downs impacting negatively and claims resolutions and pension curtailments impacting positively. Total net impact of SEK –1.1 billion.

• Order bookings in Construction amounted to SEK 61.9 billion (71.9); adjusted for currency effects order bookings decreased 18 percent. The order backlog amounted to SEK 184.0 billion (March 31, 2019: 190.1).

• Operating income in Project Development amounted to SEK 1.7 billion (2.0); adjusted for currency effects operating income decreased 12 percent.

• Return on capital employed in Project Development was 10.9 percent (11.1).

Comments from Skanska’s President and CEO Anders Danielsson:

”Our performance in the second quarter 2019 is strong. Profitability in Construction continues to improve. We are maintaining a good profitability in Residential Development, despite a challenging Swedish market, and the results in Commercial Property Development are very strong.

In Construction, we are progressing in line with our strategic plan to gradually improve profitability. We are completing projects with low profitability, mainly in Poland and the USA, and focusing our operations in an overall simplified structure.We are also reducing the risk in our backlog of future work by being very selective in our bidding process.

Overall, the order bookings are lower than our revenue, but we continue to allow for higher bookings in our well-performing units.

In Residential Development, the profitability is above our targeted level despite a slow Swedish market. The number of sold homes are in line with last year but we are starting up fewer homes to adapt to a slower sales pace and keep our market risk on a suitable level. Unsold completed homes are decreasing. Fewer starts is also a result of long and complicated zoning processes in many of our markets. Urbanization is creating a long term need for housing in our markets and more efficient zoning processes by municipalities are critical to a well functioning residential market as well as to lower costs.

Commercial Property Development had a very strong second quarter. A large number of profitable divestments where executed and contributed to the bottom line. The favorable market conditions remain, with strong demand from investors in a low interest rate environment. We are also experiencing a strong leasing momentum in our ongoing projects. And considering the steady increase in unrealized gains in our portfolio, even with our high divestment activity, we are creating possibilities for future realization of development gains as well.

In our total Project Development portfolio, including our PPP-assets, the unrealized gains has since year-end increased by SEK 1 billion at the same time as we have realized gains of SEK 2.5 billion according to segment reporting.

By the end of the second quarter unrealized gains amounted to SEK 13.5 billion. Looking at the market situation, it is overall positive but with a slightly weaker outlook for the coming twelve months in certain segments and markets. The competition in many of our markets is fierce and complexity in projects and contracts is increasing.

We have for that reason put efforts into improving our contract management and claims management process. I believe this will be beneficial for both Skanska and our customers, to be able to have a proactive and fact based dialogue during the execution of projects.

During the second quarter we received decisions in two legal matters impacting earnings positively. In summary, we are performing according to our strategic plan and in Construction the positive impact of this progress is getting more visible for every quarter. In Project Development we are not only delivering strong results by realizing gains from the portfolio, we are also creating additional value in excess of what is being divested to realize over the coming years."