Skanska plans to significantly increase investments in development businesses and margins in construction

Skanska plans to significantly increase investments in development businesses
and margins in construction

Over the past three years Skanska's businesses have focused on outperforming -
in financial terms as well as in qualitative terms. The operating margin in
Construction has increased from 1.4 percent in 2004 to 3.0 percent for the first
half of 2007. At the same time earnings in Residential Development have
increased by 60 percent, Commercial Development has continued to outperform and
the value of the Infrastructure Development portfolio has substantially
increased.

Skanska has intensified its focus in its four core values (Zero Loss-Making
Projects, Zero Accidents, Zero Environmental Incidents and Zero Ethical
Breaches) and made important achievements in avoiding loss-making projects and
reducing workplace accidents.

The new business plan, for 2008-2010, will continue on this path and take the
outperform concept to the next level. 

The main elements of the plan are:
•	Continued focus on margin improvement in the Construction business stream.
•	Significantly increase the investment in Skanska's Development business
streams (Residential Development, Commercial Development and Infrastructure
Development). 
•	Capitalization on urbanization trends in Skanska's home markets. 
•	A green initiative internally and externally. 
•	Addition of a fifth Zero - Zero Defects - as a core value aimed at improving
the bottom line and increasing customer satisfaction.

“The achievements we have made in Skanska the past three years in terms of
building our core values and enhancing profitability are substantial. We now
raise our ambitions further - in areas such as quality and environmental
performance as well as in profitability and investment volumes in our
development business”, says Stuart Graham, President and CEO of Skanska. 

In accordance with the ambitions in the new business plan, Skanska has set new
financial “Outperform” targets for the period through 2010 for all of its
business streams. 

Financial outperform targets per business stream:

			Target	Target
Construction		2007	2010
Operating margin, %		3.3	4.0

Residential Development	2007	2010
Operating margin, %		10.0	12.0
ROCE, %			18.0	18.0

Commercial Development
Value creation per annum 	SEK 500-700 M 

Infrastructure Development	2007	2010
ROCE*, %			16.0	16.0
Committed capital 2010		SEK 6 bn			
*Adjusted ROCE including unrealized development gains and change in market value

Group			2007	2010
Return on equity, %		18.0	20.0

Equity requirements
The equity requirement, post dividend, stated by the company in February 2007
was SEK 16 bn. The company's estimate is that the equity requirement will grow
by approximately SEK 1 bn per annum, assuming a growth of the business in line
with a projected macro economic scenario.

Briefing for media and the capital markets
On October 4, Stuart Graham, President and CEO, and Hans Biörck, CFO will
present the new business plan in more detail as well as new financial targets.  

The meeting will take place at IVA's Konferenscenter on Grev Turegatan 16 in
Stockholm. Coffee will be served from 13:00 CET and the presentations will begin
at 14:00 CET. It will also be possible to follow the meeting over telephone from
14:00 CET. 

If you intend to participate over the phone please use the following link to
register: 
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=486718&Conf=149470

Presentations for the meeting will be available on www.skanska.com from 12:00
CET (noon). 


For further information please contact:

Anders Lilja, Senior Vice President, Investor Relations, Skanska AB, 
tel +46 8 753 88 01
Peter Gimbe, Press Officer, Skanska AB, tel: +46 8 753 88 38. 
Direct line for media: tel: +46 8 753 88 99.


This and previous releases can also be found at www.skanska.com

This is the type of information that Skanska AB may be obligated to disclose in
accordance with the Swedish Securities Exchange and Clearing Operations Act
and/or the Financial Instruments Trading Act. 

Skanska is one of the world's leading construction groups with expertise in
construction, development of commercial and residential projects and
public-private partnerships. The Group currently has 56,000 employees in
selected home markets in Europe, in the US and Latin America. Headquartered in
Stockholm, Sweden and listed on the Stockholm Stock Exchange, Skanska's sales in
2006 totaled SEK 126 billion.