Veidekke

Earnings Release • Aug 15, 2024

15 August 2024 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, CFO

Questions? Email ir@veidekke.no

Occupational health and safety

Our primary priority

Number of serious injuries

12-month rolling, Veidekke employees, hired staff and sub-contractors

Sickness absence

12-month rolling, Veidekke employees

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Highlights Q2 2024

• Revenue at NOK 10.8 billion – down 3% from Q2 2023 • Profits and profit margin improved from Q2 2023 • Large order book remains stable at NOK 41.1 billion

Key financial figures

Q2 revenues Q2 profit before tax NOK billion NOK million

Stable order book High quality project portfolio

Order book per segment

Percent

Solid and diverse order intake

Of which public projects comprise the bulk

Results and financial status

Revenues, profits and profit margins

Group and business areas

		Q2 2024			Q2 2023
Amounts in NOK million	Revenues	Profit before tax	Profit margin	Revenues	Profit before tax	Profit margin
Construction Norway	3 692	148	4.0%	4 089	164	4.0%
Infrastructure Norway	2 817	183	6.5%	2 436	109	4.5%
Construction Sweden	1 943	42	2.2%	2 305	37	1.6%
Infrastructure Sweden	1 595	70	4.4%	1 594	59	3.7%
Denmark/Hoffmann	920	81	8.8%	811	62	7.7%
Total business areas	10 967	524	4.8%	11 236	432	3.8%
Other	-187	-41		-71	-44
Group	10 780	484	4.5%	11 165	387	3.5%

Construction Norway

Revenue down 10% – from a high level in Q2 2023

• As in the preceding quarter, revenue increased in the big cities, but decreased in the other regions

Profit margin remained stable at 4%

• Profit margin of portfolio improved
• Profits (NOK) down due to lower volume

Stable order book

• Solid order intake with high quality projects in all segments
• Revenue decline expected to continue in 2H 2024

Profit before tax

Infrastructure Norway

Revenue up 16% compared to Q2 2023

• Increase in both Civil engineering and Asphalt

Total profit NOK 183 (109) million

• All parts of the civil engineering business had solid profitability
• A rise in prices and volumes led to clearly improved Asphalt profits
• Asphalt volume expected to drop some in 2H, compared to last year

Order book up 18% from preceding quarter

• NOK 2.1 billion contract signed with the Norwegian Public Roads Administration for Ring 1 reconstruction

Revenues and profit margin

Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Revenue (NOK billion) Profit margin (%)

Profit before tax Q2

121

NOK

Asphalt and Aggregates (NOK million)

Order intake and order book Revenues and order intake

Construction Sweden

Revenue down 12% from Q2 2023 in local currency

• Gothenburg has the biggest drop
• Mixed performance in the other units

Profitability remains too low

• BRA (Gothenburg) shows solid profitability
• Results stabilised in other operations
• Measures to adjust capacity are being implemented on an ongoing basis

Order book down 10 % from yearend in local currency

• BRA order book declined
• As a result, the activity level will drop over the coming quarters

Profit before tax

Order intake and order book Revenues and order intake

11

Infrastructure Sweden

Revenue on a par with Q2 2023 in local currency

• Stable, strong revenue from all market segments

Profit boost

• Good utilisation of capacity and improved portfolio margins

The order book shrank somewhat from previous quarter, but is up 8% from yearend in local currency

• The bulk of new orders to date this year comes from increased scope in existing contracts

Revenues and profit margin

Profit before tax

Order intake and order book Revenues and order intake

Denmark

Revenue up 3% from Q2 2023 in local currency

Strong profits and solid profitability

• Consistently solid project profitability

The order book dropped 10% in the quarter in local currency but is up 5% from yearend 2023.

Financial position

Balance sheet

Amounts in NOK million	30 June 2024	30 June 2023
Fixed assets	7 400	7 218
Current assets (excluding cash, cash equivalents and financial investments)	8 979	8 134
Cash, cash equivalents and financial investments	1 158	1 448
Assets	17 537	16 800
Equity	2 380	2 228
Long-term debt	2 290	2 356
Short-term debt	12 867	12 217
Equity and debt	17 537	16 800
Equity ratio	14%	13%
Return on equity (12mos)	51%	43%
Net interest-bearing position	1 024	1 121

Financial position

Highlights H1 2024

• Increase in working capital
  • Normal seasonal variation in the asphalt and civil engineering operations
• Some increase in net investments compared to last year (NOK 300 million vs NOK 242 million), primarily related to infrastructure operations
• Tax payable on a par with 2023
• Dividend for 2023 paid to shareholders

Net interest-bearing position

NOK million

Jimmy Bengtsson, Group CEO

Good visibility

Revenue expected to decline somewhat in 2H 2024

Revenue and order intake

12-month rolling, NOK billion

Construction

• Order intake over past 12 months will result in lower activity in 2H 2024 compared to 2H 2023
• Interest rate developments will be an important influence on market sentiment going forward
• Perceived interest for projects in most major cities

Infrastructure

• Robust demand for large infrastructure projects
• Selection strategy ensuring the right projects at the right price

Position in northern Sweden bolstered

A region of growing strategic and economic importance

• With its raw materials industry, Northern Sweden takes on increasing importance in the Swedish economy
• Euromining specialises in ore loading and transporting for the Swedish mining industry
• The largest customer is LKAB, which activity in and around Kiruna and Gällivare is on the increase
• 200 employees, revenues of approx. NOK 750 million and operating profit of approx. NOK 90 million
• In 2023, Veidekke Infrastructure's revenues in the region amounted to NOK 850 million

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The road to further improvement

Systematic and step-by-step

• Continued focus on selecting the right projects at the right price in important markets – today and in the future
• Develop close, long-term customer relationships
• Solid execution and the right projects have resulted in margin improvement in large parts of the business
• Improved uncertainty management and implementation skills provide scope to assess larger infrastructure projects
• A continuous process to maintain and improve results across the entire group
• The efforts to turn around weakly-performing units continues

Summary

Stable revenues

• Infrastructure growth
• Construction decline

Improved profit and margins

• Infrastructure Norway shows clear improvement
• Good project profitability in Construction

• Solid order intake
• Construction activities expected to decline somewhat going forward

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