Skanska USA

Mike McNally, Executive Vice President 1 December 9, 2010 Capital Market Day

Skanska USA Overview − Revenues of $5.7 billion in 2009 − Represents 32% of Skanska’s revenue

− More than 7,000 employees − 32 offices across the country − Four business units operate in the U.S. − − − −

Building Civil Commercial Development Infrastructure Development

− A leading player in the market 2 December 9, 2010 Capital Market Day

U.S. Construction Business Units

USA Building

3 December 9, 2010 Capital Market Day

USA Civil

Skanska USA Building − Revenue of approximately $4 billion in 2009 − Operating margin of 1.7% − 3,000 employees − Headquarters in Parsippany, New Jersey − Delivery method: construction management − Low risk, low margin, high return on capital

− Segments (2009) − − − − − − −

Healthcare (30%) Education (18%) Government (13%) Corporate offices (13%) Sports (11%) Mission Critical/data and operation centers (5%) Life Sciences (5%)

4 December 9, 2010 Capital Market Day

Skanska USA Civil − Revenue of approximately $1.7 billion in 2009 − Operating margin of 8.6% − 4,200 employees − Headquarters in Whitestone, New York − Delivery method: Lump sum bid − Higher risk, higher margin

− Segments (2009) − − − − −

Water & Waste Water (40%) Mass Transit/Tunnels (25%) Bridges (15%) Roads (13%) Ports

5 December 9, 2010 Capital Market Day

Skanska USA locations

6 December 9, 2010 Capital Market Day

Select USA Mega-projects − New Meadowlands Stadium − $1.1 billion project in East Rutherford, N.J. − 2.1 million square feet on 180 acres − Home field for the New York Giants and New York Jets

New Meadowlands Stadium

− The United Nations − $1.5 billion project in New York, N.Y. − 2.6 million square feet − Renovating and upgrading of the international agency’s headquarters

The U.N.

− Catskill/Delaware Water Treatment Plant (Cat/Del) − $1.1 billion joint-venture project in Valhalla, N.Y. − Facility will produce 7.6 billion liters daily of clean water using ultraviolet light

Cat/Del Water Treatment Plant

− No. 7 Subway Line − $1.14 billion joint-venture project in New York, N.Y. − 1.5-mile extension of the 7 line between Times Square and the West Side 7 December 9, 2010 Capital Market Day

No. 7 Subway Line

Revenue – USA Construction 7,000 6,000 5,000

1,752 1,262

1,603

1,706

1,332

MUSD

4,000 3,000 2,000

4,012

3,760

4,022

4,600

1,217 4,024 2,318

1,000 0 2005

2006

2007

2008 Building

8 December 9, 2010 Capital Market Day

2009 Civil

2010 Jan-Sep

Backlog – USA Construction 9,000 8,000 7,000 6,000

3,501 3,668

3,347

2,488

5,000 MUSD

3,825

2,316

4,000 3,000

4,906

4,614 3,808

2,000

4,258

4,123

4,104

2008

2009

2010 Sep

1,000 0 2005

2006

2007 Building

9 December 9, 2010 Capital Market Day

Civil

EBIT/Margin – USA Construction 250.0

5.0% 4.2%

200.0

2.8%

150.0

3.7%

4.0%

214.1

3.0%

MUSD

2.2% 2.0%

100.0

149.3

178.9

2.0%

124.0 99.9

50.0

1.0% 0.3%

0.0

18.5 2005

0.0% 2006

2007

2008 EBIT

10 December 9, 2010 Capital Market Day

2009 EBIT Margin

2010 Jan-Sep

The U.S. Construction Market

11 December 9, 2010 Capital Market Day

U.S. Economy – Current Indicators − GDP positive for 4th straight quarter (2.5%) − Consumer confidence up (+4.2 pts) − Consumer spending up (+2.6%) − Inflation under control (CPI +1.2%) − Unemployment still very high (9.8%) − State budgets strained − Federal dept mounting − Recent elections (resolution or gridlock?) 12 December 9, 2010 Capital Market Day

U.S. Construction Market Summary − Challenges − Focus on debt reduction and state budget deficits will cause funding challenges for public projects − Office/Commercial/Retail markets will remain quiet until employment picks up − Competition intense – pressure on margins

− Opportunities − Huge demand for infrastructure improvements − Interest in PPPs is growing − Healthcare and education sectors still solid − Green construction growing rapidly − Big demand for energy efficient data centers 13 December 9, 2010 Capital Market Day

USD bn

Total: Residential Market: Non-residential Bldgs: Civil/infrastructure: Skanska relative market: Skanska Market share:

888.2 274.5 384.2 229.4 613 bn ~1.0%

Source: FMI 2010 Q3

Nonresidential Building construction will decline next year; Civil/Infrastructure construction will remain positive through 2014

Source: FMI’s Construction Outlook, 3Q 2010 Forecast 14 December 9, 2010 Capital Market Day

ENR Construction Industry Confidence Index − What it tells us as of Sept 22, 2010 − Segments with highest CICI − − − − −

power (60) transportation (44) water (44) healthcare (62) education (36)

− Segments with lowest CICI − − − −

retail (32) office (29) hospitality (27) multi-family (32)

− We’re in the right markets 15 December 9, 2010 Capital Market Day

Architectural Billing Index

Any score above 50 indicates an increase in billings

Source: Architectural Magazine Oct 20, 2010

16 December 9, 2010 Capital Market Day

Non Residential Building – Markets

Source: FMI’s Construction Outlook, 3Q 2010 Forecast 17 December 9, 2010 Capital Market Day

Civil Infrastructure – Markets

Source: FMI’s Construction Outlook, 3Q 2010 Forecast 18 December 9, 2010 Capital Market Day

U.S. Strategy

19 December 9, 2010 Capital Market Day

Strategy for Profitable Growth 1. Realize revenue synergies across all U.S. units 2. Become a national civil contractor 3. Grow building market share through “Centers of Excellence” 4. Leverage our U.S. leadership in green to capitalize on “Greening of America”

20 December 9, 2010 Capital Market Day

1. Realize Revenue Synergies − ID/Civil − Ronald Reagan Parkway, Gwinnett City, G.A. − Midtown Tunnel, Norfolk to Portsmouth, V.A.

− CD/Building − − − −

733 10th Street, Washington, D.C. 1776 Wilson Boulevard, Arlington, V.A. 3009 Post Oak Boulevard, Houston, T.X. 150 Second Street in Boston, M.A.

− Civil/Building − − − −

11th Street Bridge, Washington, D.C. Alaskan Way Viaduct, Seattle, W.A. New Meadowlands Stadium, East Rutherford, N.J. World Trade Center Hub, New York, N.Y.

21 December 9, 2010 Capital Market Day

2. Become a National Civil Contractor in the U.S. − Spread existing expertise − Do water, wastewater, transit and bridge work anywhere in the U.S., and marine work along the coasts − 26 people have relocated to share their expertise

− Expand footprint − Organic growth − Strategic acquisitions

22 December 9, 2010 Capital Market Day

Growth Opportunities for USA Civil - Opened USC operation in USB Seattle office - Transferred staff from Northeast - Made key hires - Won $115 million Alaska Viaduct highway project - Opened USC operation in USB Oakland office - Transferred key manager from Northeast - $137 million Light Rail project underway

Urbanized Areas Large Hub Airports Ports Largest Transit Agencies USA Civil presence USA Civil partial presence No presence

WA MT

-No USC or USB presence in ME Metro Chicago.

ND

VT

MN

OR ID

WI

SD

MI

WY NV

IA

NE UT

CA

AZ

IL CO

KS OK

NM

OH

IN

23 December 9, 2010 Capital Market Day

-No USC presence -Growing USB presence in TX -

TX

M D

WV MO AR

NJ NJ

VA

KY

NC

TN

SC AL

- Opened USC operation in USB Phoenix office - Made key hires - Won three Arizona DOT projects

NH MA RI CT

NY

GA

LA

Opened USC operation in USB Orlando office Transferred key manager from Virginia Beach Two large Miami wastewater projects underway Pursuing Orlando/Tampa High Speed Rail project

MD

DE DC

3. Grow USB Market Share Through “Centers of Excellence” − Centers of Excellence − − − − −

Healthcare Mission Critical Sports Federal Aviation

− Strategy − Grow market share and brand nationwide and support local operations with market expertise 24 December 9, 2010 Capital Market Day

4. Capitalize on “Greening of America” − Green consulting services through Skanska Integrated Solutions (SIS) − Green refurbishment of commercial offices − − − −

Life cycle analysis CO2 footprint calculations Energy modeling Energy Performance Guarantees

25 December 9, 2010 Capital Market Day

Green Construction will triple in the United States by 2013

Summary − Strategically well positioned to take advantage of a tough environment − Building − Government − Education

– Healthcare – Green

− Civil − U.S. will rebuild infrastructure

− Realizing synergies across U.S. businesses − Growth organically and through acquisitions − Our financial strength and bonding capacity are huge advantages – now is time to take market share 26 December 9, 2010 Capital Market Day