Veidekke

Earnings Release • May 12, 2022

Veidekke: Results Q1 2022

Veidekke: Results Q1 2022

Veidekke achieved revenues of NOK 8.4 billion in Q1, and a pre-tax loss of NOK

-55 million. The group's order book totalled NOK 39.6 billion at quarter-end.

The loss per share was NOK -0.4.

"While the majority of Veidekke's operations delivered satisfactory results in a

quarter historically marked by seasonal downturns, extraordinary finance costs

contributed to a weaker group performance than last year," says Group CEO Jimmy

Bengtsson.

"The first quarter of the year saw a strong inflow of new projects in most

segments, bolstering Veidekke's order book," says Bengtsson.

"Challenges experienced by the group during the Covid-19 pandemic, such as

unreliable supply and increased commodity prices, have intensified as a result

of the war in Ukraine, and will remain uncertainty factors going forward.

Veidekke is monitoring developments closely and maintaining supplier dialogues

to secure competitive prices and safeguard project progression," says Jimmy

Bengtsson.

Veidekke achieved revenues of NOK 8.4 billion in Q1 2022, compared to NOK 8.3

billion in the first quarter of 2021. The pre-tax loss totalled NOK -55 million,

compared to a profit of NOK 28 million in Q1 2021 (which included a gain on sale

of NOK 39 million). The group's first-quarter performance was impacted by

seasonal downturns in the asphalt and aggregates operations, as well as some

civil engineering segments. Most business areas achieved profitability on a par

with Q1 2021, with the exception of Construction Sweden, which experienced a

weaker quarter. Extraordinary finance costs amounted to NOK 33 million,

including NOK 13 million linked to redemption of a bond loan and NOK 20 million

in unrealised losses on financial investments, attributable to turbulence in the

financial markets. Overall, the profit margin was -0.7%, compared to 0.3% in the

first quarter of 2021.

Net interest-bearing assets totalled NOK 3.3 billion at the end of Q1 2022,

compared to NOK 3.7 billion at the beginning of the year. Cash flow from

operational activities amounted to NOK 1 million in Q1, up from NOK -185 million

in Q1 2021. The statement of financial position totalled NOK 16.5 billion at

quarter-end, on a par with the corresponding quarter of last year but down from

NOK 17.3 billion at the beginning of the year.

The group's quarterly order intake was NOK 10.4 billion, compared to NOK 9.8

billion in Q1 2021. At quarter-end, the order book amounted to NOK 39.6 billion,

up from NOK 37.9 billion last year. Around two-thirds of the order book will be

converted into revenue in the next 12 months.

The first-quarter LTI (lost time injury) rate was 5.4, on a par with the

preceding quarter and slightly up from 5.0 in Q1 2021. The sick leave rate was

4.7%, compared to 4.6% in the preceding quarter and 5.2% in the first quarter of

last year.

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

-Pressebilder-Veidekke/)

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

Securities Trading Act.

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 38 billion, and half of its 7,800 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.