Veidekke

Earnings Release • May 20, 2024

Veidekke: Strengthens its position in northern Sweden

Veidekke: Strengthens its position in northern Sweden

Veidekke has entered into a memorandum of understanding relating to its

acquisition of the company Euromining AB in Gällivare, Sweden, a machinery

contractor focused on the mining industry. Euromining's business complements

Veidekke's existing operations in northern Sweden, which currently concentrate

primarily on infrastructure and mining newbuild projects.

The acquisition encompasses not only Euromining AB, but also the two sub

-contractors Lars Almgrunds Åkeri AB and Tommys Last Vitåfors AB. Euromining

specialises in the loading and transportation of ore, and its operations are

centred on the mining district of Malmfälten, encompassing Gällivare and Kiruna.

The company's largest customer is LKAB, a major player in the northern Sweden

mining industry.

"The acquisition of Euromining strengthens and complements Veidekke's position

in a region with high activity levels and exciting prospects. Euromining's

operations are robust, as is its order book, and the company has achieved strong

financial growth. Combining these attributes with Veidekke's existing operations

will give the group a good foundation for participating in the growth forecast

for the region in the years ahead," says Veidekke Group CEO Jimmy Bengtsson.

Euromining was founded in 1999 and has approximately 200 employees across its

various subsidiaries. Its annual turnover is around NOK 750 million, and its

operating profit about NOK 90 million.

"Veidekke already has a strong portfolio of civil engineering projects linked to

the mining sector - by far the largest and most important industry in northern

Sweden. We have worked with Euromining on several projects, and both its

operations and culture are a good fit with Veidekke's future plans for the

region," says Veidekke Infrastructure Sweden Executive Vice President Marcus C

Nilsson.

Veidekke is purchasing 100% of the shares in Euromining for cash, but the

current owners will remain engaged in the business. The agreed purchase price

equates to a entreprise value of approximately NOK 500 million on a debt-free

basis, and includes a substantial element linked to performance over the next

three years. The cash payment will be financed from Veidekke's liquid reserves.

The acquisition will be implemented as soon as possible, with completion

currently scheduled for Q3 2024. The purchase agreement is conditional on

completion of satisfactory due diligence and approval of the transaction by the

competition authorities and other relevant public bodies.

This information is subject to a disclosure duty pursuant to section 5-12 of the

Securities Trading Act.

Contact persons:

Jimmy Bengtsson, CEO, +47?984 70?000

Marcus C. Nilsson, Executive Vice President, Veidekke Infrastructure Sweden, +46

76 840 05 56

Jørgen Wiese Porsmyr, CFO, Veidekke ASA, +47?907 59 058

Veidekke press photos (https://veidekke.fotoware.cloud/fotoweb/archives/5028

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking

all types of building and civil engineering assignments, the group also

maintains roads and produces asphalt and aggregates. Veidekke emphasises

stakeholder involvement and local experience. Its annual turnover is

approximately NOK 43 billion, and half of its 8,000 employees own shares in the

company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit

every year since its inception in 1936.