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Annual Report 2010 Report Annual Svevia Content Svevia Annual Report 2010 Content Svevia in figures 1 Comments from the CEO 2 Vision, goals and strategies 4 Business world and the market 6 Annual Report 2010 Core operation — road management 8 and maintenance Core operation — civil engineering 10 Strategic specialty operations 12 Organisation 14 Control for higher profitability 16 Svevia’s sustainability report 18 Corporate Governance Report 32 Board of Directors and management 36 Financial reports 38 Administration report 39 More information about Svevia 80 Own path Svevia Box 4018 SE-171 04 Solna Sweden www.svevia.se Svevia Annual Report 2010 Contents Svevia in figures 1 Comments from the CEO 2 Vision, goals and strategies 4 Business world and the market 6 Annual Report 2010 Core operation — road management 8 and maintenance Core operation — civil engineering 10 Strategic specialty operations 12 Organisation 14 Control for higher profitability 16 Svevia’s sustainability report 18 Corporate Governance Report 32 Board of Directors and management 36 Financial reports 38 Administration report 39 More information about Svevia 80 Own path Svevia Box 4018 SE-171 04 Solna Sweden www.svevia.se This is Svevia Leading in infrastructure Addresses Solna Head office Regional Office, Central Svevia Box 4018 SE-171 04 Solna Visit address: Hemvärnsgatan 15 Tel: +46 (0(8-404 10 00 Fax: +46 (0(8-404 10 50 Own path Reliability and consideration Attractive workplace Svevia is a company that has chosen its own Svevia is the reliable and considerate contrac- Svevia aims to be an exemplary employer Umeå path. We focus on building and maintaining ting company that dares to be innovative. and an attractive workplace. Regional Office, North Svevia roads and infrastructure in Sweden. Our Box 1008 2,940 employees work in 130 locations Combines strength with local presence Invests long-term SE-901 20 Umeå throughout Sweden and we have sales of Svevia combines the strength and expertise Svevia focuses on the long-term approach, Visit address: Storgatan 60 slightly more than SEK 8 billion. of the major company with solid knowledge efficiency, profitability and viability. Tel: +46 (0)90-17 26 00 Operations and Roads Water and sewage Energy Railway Bridges of local conditions. Svevia’s strength is indu- Fax: +46 (0)90-17 26 10 A streamlined contracting company strial-leading expertise and competitively Integrates sustainability maintenance Svevia constructs Svevia constructs Svevia builds and Where rails are Building, repairing Upkeep of Swedish highways, express- and maintains reinforces embank- being laid, Svevia and maintaining Svevia specialises in roads and infrastructure. priced products and services. Svevia assumes a clear environmental and Gothenburg roads from north to ways and county municipal pipeline ments at hydroelec- constructs embank- bridges is an im- From major civil-engineering projects to daily social responsibility and is a role model. Regional Office, West Svevia south is one of roads, municipal networks for water tric power plants, ments, bridges, portant part of operations throughout Sweden, year round. Box 2025 Svevia’s core opera- roads and streets and sewage. performs land platforms and station Svevia’s civil-enginee- Visit address: Nya Tingstadsgatan 1 tions. Svevia is the and private roads, as operations at district areas. ring operations. SE-422 02 Hisings Backa largest player in the well as bicycle roads heating facilities and Tel: +46 (0)31-65 65 00 market. and footpaths. construct the foun- Fax: +46 (0)31-65 65 97 “We shall be No. 1 in terms of dations for wind turbines. building and maintaining roads and Malmö Regional Office, South Svevia infrastructure.” Derbyvägen 6 A-B SE-212 35 Malmö Tel: +46 (0)40-28 79 00 Fax: +46 (0)40-28 79 06 Production: Wildeco Translation: The Bugli Company Printing: Edita, 2011 Photo: Svevia, Patrick Trägårdh, Håkan Lindgren, Ricke Johansson, Sara Södergård, Perry Nordeng This is Svevia Leading in infrastructure Addresses Solna Head office Regional Office, Central Svevia Box 4018 SE-171 04 Solna Visit address: Hemvärnsgatan 15 Tel: +46 (0(8-404 10 00 Fax: +46 (0(8-404 10 50 Own path Reliability and consideration Attractive workplace Svevia is a company that has chosen its own Svevia is the reliable and considerate contrac- Svevia aims to be an exemplary employer Umeå path. We focus on building and maintaining ting company that dares to be innovative. and an attractive workplace. Regional Office, North Svevia roads and infrastructure in Sweden. Our Box 1008 2,940 employees work in 130 locations Combines strength with local presence Invests long-term SE-901 20 Umeå throughout Sweden and we have sales of Svevia combines the strength and expertise Svevia focuses on the long-term approach, Visit address: Storgatan 60 slightly more than SEK 8 billion. of the major company with solid knowledge efficiency, profitability and viability. Tel: +46 (0)90-17 26 00 Operations and Roads Water and sewage Energy Railway Bridges of local conditions. Svevia’s strength is indu- Fax: +46 (0)90-17 26 10 A streamlined contracting company strial-leading expertise and competitively Integrates sustainability maintenance Svevia constructs Svevia constructs Svevia builds and Where rails are Building, repairing Upkeep of Swedish highways, express- and maintains reinforces embank- being laid, Svevia and maintaining Svevia specialises in roads and infrastructure. priced products and services. Svevia assumes a clear environmental and Gothenburg roads from north to ways and county municipal pipeline ments at hydroelec- constructs embank- bridges is an im- From major civil-engineering projects to daily social responsibility and is a role model. Regional Office, West Svevia south is one of roads, municipal networks for water tric power plants, ments, bridges, portant part of operations throughout Sweden, year round. Box 2025 Svevia’s core opera- roads and streets and sewage. performs land platforms and station Svevia’s civil-enginee- Visit address: Nya Tingstadsgatan 1 tions. Svevia is the and private roads, as operations at district areas. ring operations. SE-422 02 Hisings Backa largest player in the well as bicycle roads heating facilities and Tel: +46 (0)31-65 65 00 market. and footpaths. construct the foun- Fax: +46 (0)31-65 65 97 “We shall be No. 1 in terms of dations for wind turbines. building and maintaining roads and Malmö Regional Office, South Svevia infrastructure.” Derbyvägen 6 A-B SE-212 35 Malmö Tel: +46 (0)40-28 79 00 Fax: +46 (0)40-28 79 06 Production: Wildeco Translation: The Bugli Company Printing: Edita, 2011 Photo: Svevia, Patrick Trägårdh, Håkan Lindgren, Ricke Johansson, Sara Södergård, Perry Nordeng Svevia in figures 20 % Return target 15 Return on shareholders’ equity SALES 8 093 SEKm Target 13 % rose from 9.4 percent in 2009 10 12,3 % 9,4 % to 12.3 percent. This was 5 some what below the target of 0 PROFIT FOR THE YEAR 169 SEKm 2009 2010 13 percent. 40 % Equity ratio target 38,1 % Target 30 30 % The equity ratio was 38 per- 32,5 % ORDER INTAKE 7 544 SEKm 20 cent and thus surpassed the target. 10 0 2009 2010 EMPLOYEES 2 940 80 % 80 Target 50–75 % Dividend policy 60 The proposed60 dividend of 64 % Adjusted for non-recurring costs, Svevia’s earnings for 2010 remained unchanged 40 50 % SEK 10840 m amounted to 64 percent of profit for the compared with 2009. Structural measures in the paving operations resulted in 20 20 a sharp earnings improvement, while profitability in the core businesses did not year and is within the frame- 0 0 reach an acceptable level. Work to sharpen competitiveness continues. 2009 2010 work for the adopted dividend policy. SVEVIA ANNUAL REPORT 2 0 10 1 COMMENTS FROM THE CEO We dare to think along new lines Svevia is entering its third year as an independent company. We have always been known for assuming responsibility and operating reliably. We intend to safeguard this heritage. But we will also focus more determinedly on entrepreneurship and become known for our innovativeness. Svevia builds and maintains sustainable infrastructure and strives to be an attractive workplace for employees with different backgrounds than the traditional. long-term objective of 13 per cent. A sharp improvement in Svevia’s paving operations was a strong contributing factor to our operating profit. Earnings in the various re- gions, however, reflect the effects of the eco- nomic crisis two years ago. Competition for the contracts we were awarded was extremely in- tense, and we were impacted by price pressure in many of our construction projects. There is potential for improved profitability parallel with the renewal of these contracts. Actions to generate higher profitability We are now implementing systematic actions to improve earnings in our core business areas, At Svevia, we welcome the growing interest in pioneer in assuming environmental and social with entrepreneurship and innovativeness as infrastructure. Our activities are on the intersec- responsibility. our lodestars. We will become better in se- ting line between the environment, social re- lecting projects that are more suitable to our sponsibility and economics, which offers good Sustainability and economics operations and conduct them more efficient- opportunities for Svevia as a company and a Building and maintaining infrastructure is re- ly. Productivity development in the industry community player. source-intensive. When we operate efficiently, is not particularly dynamic at present, which we combine environmental considerations with also holds true for us. In this area, it’s essen- Good infrastructure a condition for survival sound economics. Our businessmindedness is tial to think along new lines. This applies not Sweden is a small, open economy that is highly stimulated by this approach. Equally self-evident least to procurements, an area in which Sve- dependent on its export markets. Well functio- is that Svevia, which is characterised by concern via has potential for improvement through in- ning roads, railways, ports and airports are a for its employees, travellers and other interests, creased coordination and efforts to find alterna- condition for survival.
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