Veidekke

Investor Presentation • Feb 9, 2022

6. mai 2021 Presentation Q4 2021

9 February 2022 Jimmy Bengtsson, Group CEO Jørgen Wiese Porsmyr, Group CFO

Occupational health and safety Our primary priority

hired staff and sub-contractors 0 2 4 6 8 10 12 14

Number of serious injuries

12-month rolling, Veidekke employees,

Sickness absence

Veidekke employees

Highlights Q4 2021

• Revenues on a par with Q4 2020
• Solid results and 3.9% profit margin
• Order book on a par with a year ago
• Proposed dividend of NOK 7.0 per share for 2021

Veidekke is building a new nursing home in Moelv to the passive house standard. The project is a collaborative design and build contract valued at NOK 250 million excl. VAT.

Key financial figures Q4 revenues and profits

Q4 revenues Q4 pre-tax profit

NOK billion NOK million

Historical figures have been restated in connection with the spin-off of the property development operation

Strong order book

40 Revenues and order intake Order book 12-month rolling, NOK billion NOK billion

Results Group and segments

Jørgen Wiese Porsmyr, Group CFO Q4 2021

Revenues, profits and profit margins Group and segments

		Q4 2021			Q4 2020
Amounts in NOK million	Revenues	Profit before tax	Profit margin	Revenues	Profit before tax	Profit margin
Construction Norway	3 474	139	4.0 %	4 076	155	3.8 %
Infrastructure Norway	2 448	134	5.5 %	2 049	82	4.0 %
Construction Sweden	2 491	34	1.4 %	2 238	49	2.2 %
Infrastructure Sweden	1 316	53	4.0 %	1 287	49	3.8 %
Denmark/Hoffmann	590	70	11.9 %	686	78	11.4 %
Other	-142	-37		-61	-22
Group	10 176	393	3.9 %	10 274	391	3.8 %

Construction Norway

• 15% year-on-year drop in revenues from Q4 2020
  • Reflects drop in new orders in 2020
  • Largely attributable to commercial building segment in Oslo
• Margin increase on slightly declining profits
  • Majority of operations had solid profitability
  • Weak profitability in south-western Norway
• Order book
  • 2% boost in order book over preceding quarter
    • Increase in residential and commercial building segments
  • Revenues expected to drop in 1H 2022, compared to preceding year

Revenues and margin Profit before tax

5

0%

1%

2%

3%

4%

5%

155 138

Order intake and order book Revenues and order intake

© Veidekke

Infrastructure Norway

• Revenues up 23% over Q4 2020
  • Revenue boost in majority of operations
  • Increase in Asphalt and Aggregates revenues attributed to higher raw material prices
• Results and profit margin improvements, particularly related to civil engineering
  • Total profit increased to NOK 134 mill. (82 mill.)
  • Civil engineering: Improvements in major projects portfolio and solid road maintenance profitability
  • Asphalt and Aggregates; on a par with the previous year – no activity in asphalt factories in December
• Order book down 12% from previous quarter, but up somewhat over Q4 2020
  • High market activity

Order intake and order book Revenues and order intake

-4 -3 -2 -1 0 1 2 3 4

© Veidekke

9

Construction Sweden

• Revenues increased by 11% over Q4 2020
  • Gothenburg operations accounted for the bulk of the increase
• Weak results and low profitability
  • Low profitability in Stockholm and Uppsala
  • Will become more selective and adapt capacity, with an increased proportion of collaborative contracts
• Order book
  • The order book dropped 10% from preceding quarter, affecting all segments
  • Slight increase over Q4 2020, with orders clearly increasing in western Sweden, and dropping in Stockholm.

Revenues and margin Profit before tax 2.2 2.0 2.2 2.9 2.5 2.2% 2.5% 3.3% 1.4% 1% 2% 3% 4% 5% 1 2 3

0%

0.6% 0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Revenues (NOK billion) Margin (%)

Order intake and order book Revenues and order intake

10

© Veidekke

Infrastructure Sweden

• Revenues up by 2% over Q4 2020
  • Majority of operations contributed to the increase, while revenues from the Stockholm business dropped slightly
• Results and profit margin boosted
  • Margin improvement in majority of operations
  • Slightly lower profitability in industrial operations
• Order book on a par with preceding quarter, but below Q4 2020
  • High market activity

Revenues and margin Profit before tax 1.3 0.8 1.1 1.1 1.3 3.8% -1.7% 3.7% 5.0% 4.0% -3% -2% -1% 0% 1% 2% 3% 4% 5% -1 1 2 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 49 -14 41 54 53 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21

7

Revenues (NOK billion) Margin (%) Profit before tax (NOK million)

Order intake and order book Revenues and order intake

Denmark/Hoffmann

• Revenues down 14% compared to Q4 2020
  • Activities dropped in greater Copenhagen; but increased on Jutland
• Profits high; profit margin increased
  • Projects have consistently good profitability
• Order book down 5% from preceding quarter
  • Temporary revenue drop expected for 1H 2022; estimated at 15%–20% below 1H 2021

Revenues and margin Profit before tax 0.7 0.6 0.5 0.6 0.6 11.4% 7.0% 7.0% 8.0% 11.9% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0 1 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 78 43 37 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21

Order intake and order book Revenues and order intake

4

Revenues (NOK bill.) Margin (%) Profit before tax (NOK mill.)

50

70

© Veidekke

Financial position

Balance sheet

Amounts in NOK million	31 December 2021	31 December 2020
Fixed assets	6 323	6 452
Current assets (excluding cash, cash equivalents and financial investments)	6 639	7 330
Cash, cash equivalents and financial investments	4 353	3 759
Assets	17 315	17 541
Equity	2 865	2 877
Long-term debt	3 297	3 031
Short-term debt	11 153	11 633
Equity and debt	17 315	17 541
Equity ratio	17 %	16 %
Return on equity (12mos)	38 %	53 %
Net interest bearing position	3 709	3 078

Financial position

• NOK 2.2 billion cash flow from operations in 2021
• NOK 473 million net investment in fixed assets
  • Mainly related to investments in Infrastructure Norway
• Voluntary buy-back of bond loan completed after year-end
  • Bond loan reduced from NOK 600 million to NOK 193 million

Key points 2021 Change in net interest-bearing assets

NOK billion

14

NOK 7.0 per share dividend proposed for 2021 Equals 99% of dividend ratio

Ordinary dividend NOK per share

• Proposed dividend*: NOK 7.0 (5.75)
• Earnings per share: NOK 7.1 (5.8)**
• Dividend ratio: 99% (100%)

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2

4

6

8

10

12

* 2021 financial year proposal

** Earnings per share 2020 denote continued operations. 2020 figures in parentheses Ordinary dividend Dividend ratio of ordinary dividend

Closing comments

Jimmy Bengtsson, Group CEO

Key financial figures Revenues and profits 2021

17 Historical figures (2018–2020) have been restated in connection with the spin-off of the property development operation.

Profitability performance improved Providing a solid basis for 2022

Concrete measures have improved profitability

• Selective approach to projects and customers
• Risk management at all levels of the organisation
• Operations have been discontinued and divested
• Organisational structure ensures proximity to customers

The order backlog provides a good basis for 2022, and improvement efforts continue

Facsimile from Veidekke's CMU in May 2021

Sustainability is at the core of Veidekke's achievements Vital progress along three axes

Climate adaptation and risk

• 2021 decision to make Veidekke climate neutral (net zero) by 2045
• Scope 1 & 2 emissions down 17% from 2020
• Climate risk is managed in line with TCFD

Safety and compliance

• For the first time, Veidekke reports no serious injuries
• Supportive of compliance efforts in the construction and civil engineering industry

Sustainability and governance

• Update of materiality analysis
• Sustainability is at the core of Veidekke's commercial strategy towards 2025

Closing comments

• Solid profits and profit margin development
• Growth and profitability targets remain unchanged
• Proposed dividend of NOK 7.0 per share

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