Veidekke

Earnings Release • Aug 17, 2023

Veidekke: Q2 2023 results

Veidekke: Q2 2023 results

Veidekke achieved revenues of NOK 11.2 billion in Q2, and a pre-tax profit of

NOK 387 million. The group's order book totalled NOK 45.0 billion at quarter

-end. The profit per share was NOK 2.0.

"Veidekke has maintained high activity levels and stable profitability despite

more challenging market conditions, and has increased group profits compared to

last year," says Group CEO Jimmy Bengtsson.

"The group's quarterly order inflow was robust and broad-based in terms of both

geographical spread and market segments. The order book of the Norwegian

construction operation is particularly strong, and although we are anticipating

flatter growth going forward, we also expect activity levels to remain

satisfactory. The order book of the Swedish construction operation has followed

the sharp downturn in the residential property market, and we now expect

declining activity levels in the months ahead," says Jimmy Bengtsson.

"Meanwhile, demand for major infrastructure projects remains high in both Norway

and Sweden, although the profits of the Norwegian infrastructure operation were

weaker than anticipated. This is primarily attributable to tougher market

conditions in the groundworks, foundation and aggregates segments," says

Bengtsson.

"Overall, the quarterly results illustrate our ability to adapt to challenging

markets. Our project portfolio is highly diverse, featuring a range of customer

groups and projects with different drivers in numerous geographical regions.

Moreover, we continue to be selective in the assignments we take on. We remain

focused on securing improvements and see continued high potential for boosting

our profitability," says Bengtsson.

Veidekke achieved revenues of NOK 11.2 billion in Q2 2023, up 13% from NOK 9.9

billion in the second quarter of 2022. The increase is attributable to

Construction Norway, Hoffman and Infrastructure Sweden.

Higher activity levels improved the group's nominal result, with the quarterly

pre-tax profit totalling NOK 387 million, compared to NOK 355 million in the

second quarter of last year. Overall, the profit margin was 3.5%, compared to

3.6% in Q2 2022.

The group's quarterly order intake was NOK 12.2 billion, compared to NOK 13.2

billion in Q2 2022. Around two-thirds of the order book will be converted into

revenue in the next 12 months. At quarter-end, the order book amounted to NOK

45.0 billion, up 9% since the start of the year and up 2% on the same quarter

last year.

Net interest-bearing assets totalled NOK 1.1 billion at the end of Q2 2023,

compared to NOK 2.0 billion last year. Cash flow from operational activities

amounted to NOK 499 million in the first half of the year, compared to NOK 28

million in the first half of 2022. The state­ment of financial position totalled

NOK 16.8 billion at quarter-end, compared to NOK 17.6 billion at the beginning

of the year and NOK 17.0 billion one year ago.

The second-quarter LTI (lost time injury) rate was 3.7, compared to 3.9 in the

first quarter of the year and 2.2 in Q2 2022. No serious injuries occurred

during the second quarter. The sick leave rate was 4.2%, down from 6.2% in the

preceding quarter and 4.7% in the second quarter of last year.

Revenues in the first half of 2023 totalled NOK 20.6 billion, compared to NOK

18.3 billion in the first half of 2022. The pre-tax profit for the first half

-year amounted to NOK 240 million, compared to NOK 300 million in the same

period last year. The result for the first half of 2023 includes a settlement

with the Norwegian Public Roads Administration relating to the E39 motorway

which had a negative profit effect of NOK -110 million. Adjusted for the

settlement, the first-half 2023 profit was NOK 350 million. A positive liquidity

effect of NOK 300 million will have effect in Q3. The overall profit margin

totalled 1.2% as at 30 June 2023, compared to 1.6% one year ago. Adjusted for

the settlement, the profit margin was 1.7%.

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

Securities Trading Act.

For more information, contact:

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

Lars Erik Lund, EVP, +47?413 31 369

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

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

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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 39 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.