Veidekke

Earnings Release • Feb 9, 2022

Veidekke ASA

Fourth quarter 2021

Results Q4 2021 and the year 2021

Veidekke achieved revenues of NOK 10.2 billion in Q4, and a pre-tax profit of NOK 393 million. The group's order book totalled NOK 38.1 billion at year-end. The profit per share for 2021 was NOK 7.1, and the board is proposing a dividend of NOK 7.0 per share for the financial year 2021.

"Veidekke stayed on course in 2021, as confirmed by the fourth-quarter performance. We improved our profitability throughout the year and delivered a better result than in 2020 despite somewhat lower revenues. Infrastructure Norway achieved the greatest improvements both in Q4 and in 2021 as a whole. Construction Norway also improved profitability year-on-year, while the Danish operation continued to deliver strong margins," says Group CEO Jimmy Bengtsson.

"With profitability at 3.6% in 2021, up from 3.0% in 2020, Veidekke is well on the way to achieving its profitmargin targets of 4% in 2022 and 5% in 2025. The board has underlined this with its proposal to distribute the entire annual profit," says Bengtsson.

"2021 was a milestone year for Veidekke. Following many years of systematic investment in injury-reduction in the form of procedures, equipment and attitudes, we recorded a year without serious injuries. I am particularly pleased that we reached this milestone in a year when corona restrictions demanded significant attention and great flexibility on our construction sites. Injury-prevention remains an ongoing and high priority for us, and we therefore regard the achievement of zero serious injuries in 2021 not as the finishing line but rather as a lap time in line with the schedule we adopted a few years ago," says Jimmy Bengtsson.

Veidekke achieved revenues of NOK 10.2 billion in Q4 2021, compared to NOK 10.3 billion in the fourth quarter of 2020. The fourth-quarter pre-tax profit totalled NOK 393 million, compared to NOK 391 million in Q4 2020. The infrastructure operations delivered improved results and profitability. The performances of the other operations were somewhat weaker year-on-year, with the decline primarily being attributable to reduced revenues. Overall, the profit margin was 3.9%, on a par with Q4 2020. All operational areas improved their profitability compared to last year, with the exception of Construction Sweden, which experienced a weak quarter.

The group achieved total revenues of NOK 37.6 billion in 2021, compared to NOK 38.1 billion in 2020. Measured in local currency, revenues were nevertheless on a par with 2020. Construction Sweden and Infrastructure Norway improved their revenues, while revenues dropped for Construction Norway, Infrastructure Sweden and the Danish operation. The group's total pre-tax profit in 2021 amounted to NOK 1 342 million, up from NOK 1 134 million in 2020. The improvement is attributable to Infrastructure Norway. The 2021 profit margin was 3.6%, up from 3.0% in 2020. With the exception of Construction Sweden, all operational areas improved their profitability.

Net interest-bearing assets totalled NOK 3.7 billion at the end of Q4 2021, compared to NOK 3.1 billion at the beginning of the year. Cash flow from operational activities amounted to NOK 856 million in Q4, and NOK 2.2 billion in 2021 as a whole. The statement of financial position totalled NOK 17.3 billion at quarter-end, compared to NOK 17.5 billion one year ago.

The group's Q4 order intake was NOK 7.9 billion, compared to NOK 9.8 billion in Q4 2020. At quarter-end, the order book amounted to NOK 38.1 billion, up from NOK 37.5 billion in 2020. The order book strengthened in the Other civil engineering and Maintenance contracts segments, but weakened in other segments. Around twothirds of the order book will be converted into revenue in the next 12 months.

The fourth-quarter LTI (lost time injury) rate was 5.4, compared to 5.7 in the preceding quarter and 4.4 in Q4 2020. There were no serious injuries in 2021. The sick leave rate was 4.6%, compared to 4.2% in the preceding quarter and 5.5% in the fourth quarter of last year.

Key figures1)

Figures in NOK million	Q4 2021	Q4 2020 3)	As at 31 Dec. 2021	As at 31 Dec. 2020 3)
Revenue, segment	10 176	10 274	37 592	38 140
Pre-tax profit, segment	393	391	1 342	1 134
Construction Norway	139	155	507	532
Infrastructure Norway	134	82	462	244
Construction Sweden	34	49	166	175
Infrastructure Sweden	53	49	133	128
Denmark/Hoffmann A/S	70	78	200	200
Other	-37	-22	-127	-145
Profit margin	3.9%	3.8%	3.6%	3.0%
EBITDA	655	557	2 282	2 079
Profit attributable to Veidekke ASA shareholders	303	276	958	780
Profit per share (NOK)	2.2	2.0	7.1	5.8
Net interest-bearing assets	3 709	3 078	3 709	3 078
Cash flow from operations	856	864	2 194	2 350
Return on equity past 12 months	38%	53%	38%	53%
Total order book	38 084	37 460	38 084	37 460
Order intake	7 915	9 768	17 979	21 293
LTI rate	5.4	4.4	4.6	4.4
Sickness absence	4.6%	5.5%	4.6%	5.1%

1) The figures relate to continued operations, unless otherwise specified.

2) Comprises both continued operations and the operation sold at 1 September 2020.

3) Figures for 2020 are taken from the segment account.

Veidekke Infrastructure Norway achieved revenues of NOK 2.5 billion in the fourth quarter, compared to NOK 2.0 billion in the same quarter of last year. The pre-tax profit totalled NOK 134 million, up from NOK 82 million in Q4 2020. The improvement is attributable to a strong performance by the road maintenance operation and improvements in the portfolio of major civil engineering projects. The total profit margin was 5.5%, up from 4.0% in Q4 2020.

The civil engineering operation generated revenues of NOK 1.6 billion in Q4, compared to NOK 1.3 billion in the corresponding quarter of last year. The profit totalled NOK 103 million, up from NOK 48 million in Q4 2020. Progress was achieved by the road maintenance operation and in the major civil engineering projects portfolio. The result includes impairment of goodwill linked to specialist units totalling NOK 11 million. The profit margin of the civil engineering operation was 6.3%, compared to 3.6% in Q4 2020. The road maintenance and major civil engineering projects portfolio made a positive contribution to the profit margin. The major civil engineering projects portfolio is still engaged in a turnaround process, but is improving.

The asphalt and aggregates operations achieved revenues of NOK 805 million in the fourth quarter, up from NOK 703 million last year. Among other things, the revenue improvement is attributable to increased volumes and higher raw material prices. The quarterly profit was NOK 30 million, compared to NOK 34 million last year. The profit margin was 3.8%, down from 4.9% in Q4 2020.

In 2021 as a whole, Infrastructure Norway generated revenues of NOK 9.1 billion, up from NOK 8.8 billion in 2020. The pretax profit amounted to NOK 462 million, compared to NOK 244 million last year. Profits improved across the entire operation. The annual profit margin was 5.1%, up from 2.8% in 2020.

The fourth-quarter order intake amounted to NOK 592 million, compared to NOK 991 million in the same quarter of 2020. The order intake includes civil engineering orders and road maintenance contracts. No major contracts were signed in the fourth quarter. At quarter-end, the order book for Infrastructure Norway totalled NOK 7.5 billion, compared to NOK 7.2 billion at the beginning of the year. Road maintenance contracts amounted to NOK 3.9 billion of the order book, compared to NOK 3.1 billion at year-end 2020.

NOK million	Q4 2021		Q4 2020 As at 31 Dec. 2021 As at 31 Dec. 2020
Total revenue	2 448	2 049	9 147	8 847
Civil engineering	1 643	1 346	5 821	5 933
Asphalt, aggregates	805	703	3 327	2 914
Total pre-tax profit	134	82	462	244
Civil engineering	103	48	285	161
Asphalt, aggregates	30	34	177	83
Total profit margin	5.5%	4.0%	5.1%	2.8%
Civil engineering	6.3%	3.6%	4.9%	2.7%
Asphalt, aggregates	3.8%	4.9%	5.3%	2.8%
Order book	7 477	7 206	7 477	7 206

Infrastructure Norway

The Norwegian construction operation generated revenues of NOK 3.5 billion in the fourth quarter of 2021, compared to NOK 4.1 billion in the fourth quarter of 2020. The 15% year-on-year drop in revenues is attributable to a reduced order intake in 2020 and the first half of 2021.

The Q4 pre-tax profit totalled NOK 139 million, compared to NOK 155 million in the fourth quarter of 2020. The profit margin increased from 3.8% in Q4 2020 to 4.0% in Q4 2021. The operations in Oslo and central parts of eastern Norway improved their profitability further from an existing high level. In south-western Norway, profitability was weak and profits fell compared to the same quarter in 2020.

In 2021 as a whole, the Norwegian construction operation generated revenues of NOK 13.5 billion, compared to NOK 14.6 billion in 2020. The pre-tax profit amounted to NOK 507 million, compared to NOK 532 million in 2020. Several entities improved their profit- ability in 2021, and the annual profit margin rose to 3.8%, from 3.6% in 2020. The fourth-quarter order intake was NOK 3.7 billion, compared to NOK 3.4 billion in Q4 2020.

New contracts signed in the quarter:

• Gladengveien 12–14. Residential project in Oslo for Ferd Eiendom. Contract value NOK 398 million.
• P-hus Sola. Multi-storey car park at Sola Airport in Stavanger for Kruse Smith. Contract value NOK 352 million.
• Frysjaparken tract B. Residential project in Oslo for Stor-Oslo Eiendom. Contract value NOK 342 million.
• Dælenenga multi-purpose hall. Multi-purpose hall for Oslo KF. Contract value NOK 248 million.
• Stålverket Torg. Residential project in Hamar for Obos. Contract value NOK 205 million.

At quarter-end, the order book totalled NOK 13.5 billion, compared to NOK 13.4 billion at the beginning of the year. The order composition indicates somewhat lower revenue in the first half of 2022, compared to 2021.

NOK million	Q4 2021		Q4 2020 As at 31 Dec. 2021 As at 31 Dec. 2020
Revenue	3 474	4 076	13 514	14 638
Pre-tax profit	139	155	507	532
Profit margin	4.0%	3.8%	3.8%	3.6%
Order book	13 537	13 358	13 537	13 358

Construction Norway

Infrastructure Sweden generated revenues of NOK 1.3 billion in the fourth quarter, up 2% on Q4 2020. Revenue increased across most of the operation, but fell in Stockholm. Profits amounted to NOK 53 million, compared to NOK 49 million in the final quarter of last year. The quarterly profit margin was 4.0%, compared to 3.8% one year ago.

For the year as a whole, the operation generated revenues of NOK 4.3 billion, compared to NOK 4.4 billion in 2020. The pretax profit was NOK 133 million, up from NOK 128 million last year. The civil engineering operations in Skåne and Gothenburg improved their performance, while the industrial operation recorded a drop in profits. The profit margin for the year as a whole was 3.1%, up from 2.9% in 2020.

The fourth-quarter order intake totalled NOK 1.3 billion, compared to NOK 2.6 billion in Q4 2020.

New contracts signed during the quarter:

• Norrbotniabanan. Railways project for the Swedish Transport Administration. Contract value NOK 441 million.
• Stadshagen. Civil engineering works in Mariedal Park in Stockholm. Contract value NOK 207 million.

At the end of the fourth quarter, the order book stood at NOK 4.8 billion, compared to NOK 5.5 billion at year-end 2020. Measured in local currency, the order book shrank by 7%.

NOK million	Q4 2021		Q4 2020 As at 31 Dec. 2021 As at 31 Dec. 2020
Revenue	1 316	1 287	4 345	4 426
Pre-tax profit	53	49	133	128
Profit margin	4.0%	3.8%	3.1%	2.9%
Order book	4 774	5 495	4 774	5 495

Infrastructure Sweden

NOK million	Q4 2021		Q4 2020 As at 31 Dec. 2021 As at 31 Dec. 2020
Revenue	2 491	2 238	8 544	7 867
Pre-tax profit	34	49	166	175
Profit margin	1.4%	2.2%	1.9%	2.2%
Order book	9 483	8 885	9 483	8 885

Construction Sweden

Construction Sweden recorded revenues of NOK 2.5 billion in the fourth quarter, compared to NOK 2.2 billion in the same quarter of last year. The revenue increase is primarily attributable to the operation in Gothenburg. The fourth-quarter profit was NOK 34 million, compared to NOK 49 million last year. The overall quarterly profit margin was 1.4%, compared to 2.2% in Q4 2020. The weak performance is attributable to low profitability in the Stockholm and Uppsala operations.

The Swedish construction operation achieved revenues of NOK 8.5 billion in 2021 as a whole, up from NOK 7.9 billion last year. The pre-tax profit was NOK 166 million, compared to NOK 175 million in 2020. The result was impacted by low profitability in the Stockholm operation. The profit margin for 2021 was 1.9%, compared to 2.2% in 2020.

The fourth-quarter order intake totalled NOK 1.8 billion, compared to NOK 2.0 billion last year.

New contracts signed during the quarter:

• GoCo Lott H. Innovation centre in Mölndal for Majira Real Estate 8 AB. Contract value NOK 240 million.
• Ciceron Brf. Residential project in Gothenburg for Nordr. Contract value NOK 177 million.
• Torslandaskolan. School for Lokalförvaltningen i Göteborg. Contract value NOK 175 million.
• Kvarter C. Residential project in Uppsala for TB-Gruppen. Contract value NOK 172 million.
• Kvarter A. Residential project in Uppsala for TB-Gruppen. Contract value NOK 154 million.

At the end of the fourth quarter, the order book stood at NOK 9.5 billion, compared to NOK 8.9 billion at year-end 2020. Measured in local currency, the order book grew by 14%.

Other operations

Other operations consist of unallocated costs associated with the group's corporate administration, the sale of administrative services to the group's Norwegian operations, financial management and the group's ownership role in Public–Private Partnerships (PPP), and the elimination of intra-group profits. The result for the fourth quarter was NOK -37 million.

For 2021 as a whole, the pre-tax result was NOK -127 million.

Financial situation

Net interest-bearing assets amounted to NOK 3.7 billion at quarter-end, compared to NOK 3.1 billion at the beginning of the year. Operational cash flow totalled NOK 856 million in Q4 and NOK 2.2 billion in 2021 as a whole. Net investments in current assets – net of leases pursuant to IFRS-16 – amounted to NOK 473 million for the year. The statement of financial position totalled NOK 17.3 billion at quarter-end, compared to NOK 17.5 billion at the beginning of the year.

Veidekke refinanced its existing borrowing facilities with DNB and SEB in December 2020. As at the end of Q4 2021, Veidekke had not drawn on any of its available credit totalling NOK 2.5 billion.

After quarter-end, in January 2022, Veidekke implemented a voluntary buy-back of its VEI10 bond loan, which has a maturity date of 19 March 2025. As at 31 December 2021, the loan had an outstanding volume of NOK 600 million, of which a total of NOK 407 million was bought back at a price of NOK 103.20, with a payment date of 20 January. Following the buy-back offer, Veidekke's bond loan stands at NOK 193 million.

Shareholder information

A total of 12.9 million Veidekke shares were traded in the fourth quarter of 2021. The share price ranged from NOK 106.8 to NOK 132.4 and was NOK 132.4 as at 31 December 2021. The foreign shareholding was 26.3%. Approximately 11.5% of the shares in the company are owned by Veidekke employees.

Largest shareholders as at 31 December 2021	Shareholding
OBOS BBL	19.3%
Folketrygdfondet	11.0%
If Skadeförsäkring AB	3.7%
ODIN Funds	2.7%
Danske Invest (DK)	2.5%
Vanguard	2.5%
Erik Must	2.2%
MP Pensjon PK	2.0%
Länsförsäkringar Funds	1.9%
Lannebo Funds	1.9%
Total 10 largest shareholders	49.7%
Employees	11.5%
Other	38.8%
Total	100.0%
Total number of issued shares	134 956 267

100.0%
11.5% 38.8%
1.9% 49.7%
1.9%
2.0%
2.2%
2.5%
2.5%
2.7%
3.7%
11.0%
19.3%

Denmark/Hoffmann A/S

NOK million	Q4 2021		Q4 2020 As at 31 Dec. 2021 As at 31 Dec. 2020
Revenue	590	686	2 362	2 652
Pre-tax profit	70	78	200	200
Profit margin	11.9%	11.4%	8.5%	7.5%
Order book	2 813	2 516	2 813	2 516

The Danish operation achieved revenues of NOK 590 million in the fourth quarter, compared to NOK 686 million in the corresponding quarter last year. Activity levels fell in greater Copenhagen, but increased on Jutland. The pre-tax profit was NOK 70 million, compared to NOK 78 million in Q4 2020. The project portfolio remains robustly profitable, with a profit margin of 11.9%, compared to 11.4% in Q4 2020.

In 2021 as a whole, revenues totalled NOK 2.4 billion, compared to NOK 2.7 billion the previous year. The pre-tax profit amounted to NOK 200 million, as in 2020. The annual profit margin was 8.5%, up from 7.5% last year. The fourth-quarter order intake totalled NOK 511 million, compared to NOK 686 million in Q4 2020.

New contracts signed during the quarter:

• Engelholm. Refurbishment of office premises outside Copenhagen for the Danish Building and Property Agency. Contract value NOK 238 million.
• The Hive. Office premises in Copenhagen for Bikubenfonden. Contract value NOK 114 million.

The order book stood at NOK 2.8 billion at the end of the fourth quarter, compared to NOK 2.5 billion at year-end 2020. While the order book is strong, several projects are not scheduled to start until mid-2022. Revenue is therefore expected to be 15%–20% lower in the first half of 2022 than in first half of 2021.

Oslo, 8 February 2022 The board of directors of Veidekke ASA

Svein Richard Brandtzæg chair

Jimmy Bengtsson Group CEO

Gro Bakstad Ingolv Høyland Daniel Kjørberg Siraj Hanne Rønneberg Per-Ingemar Persson

Klara-Lise Aasen Carola Lavén Inge Ramsdal Odd Andre Olsen Arve Fludal

Related party transactions

Veidekke is regularly involved in transactions with related parties in the course of its ordinary operations, including contracts for the development of specific projects. There were no other significant related-party transactions in the fourth quarter of 2021. For a more detailed description of related-party transactions, see Veidekke's Annual and sustainability report 2020.

Risks

Veidekke's business primarily involves the execution of individual projects. Projects vary greatly in terms of complexity, size, duration and risk, and systematic risk management in all parts of the business and during all project phases is therefore of crucial importance. This encompasses matters such as project selection, processes and quality of tenders, and project follow-up and execution. Having the necessary expertise to ensure optimal assignment execution is key when deciding which projects to tender for.

At the tender preparation stage, risks are identified and assessed, and plans are made for managing risk during the execution phase. Veidekke's projects are increasing in size and complexity, making risk management a high priority. Certain forms of contract permit differing interpretations of contractual performance, giving room for disagreement between contractor and client regarding final payment. This applies particularly to transport infrastructure projects, in which the contractual sums are large. Although Veidekke seeks to reach agreement with clients through negotiations, some disputes do end up in the court system. As at the end of the quarter, Veidekke was involved in one major dispute currently before the courts.

The spread of the Omicron variant of Covid-19 is expected to result in higher general sickness absence, a development which may affect Veidekke's projects. Veidekke always follows official recommendations for controlling infection, not least to minimise illness and quarantine among employees. In addition to infection issues and sickness absence, the group's risk profile in the aftermath of the Covid-19 pandemic is characterised by potential difficulties with the delivery of goods and components, as well as more volatile raw material prices.

In Sweden, uncertainty has arisen about the future availability of cement for the construction and civil engineering markets. In a July 2021 judgment, Sweden's Land and Environment Court refused a new mining licence for the Cementa cement factory on Gotland, which currently accounts for around 75% of Sweden's total cement production. On 18 November 2021, the Swedish Government temporarily extended Cementa's licence, to allow the company to quarry the remaining volume of limestone until 31 December 2022. This decision was appealed to the Supreme Court of Sweden in December 2021. The appellant is demanding that the government's decision be reversed and should not even apply temporarily. At the time of writing, it is impossible to estimate how long the Supreme Court will take to hear the appeal and the application for the court to suspend the decision pending assessment of the matter. A prohibition would require Cementa to stop quarrying limestone immediately. In the interim, Veidekke is continuing to work closely with industry stakeholders and cement production partners to secure priority and future supplies for its projects.

For further discussion of the company's financial risk, climate risk and other risk factors, see Note 30 to Veidekke's Annual and sustainability report 2020.

he board of direct

INCOME STATEMENT

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
Revenue	10 176	10 274	37 592	38 140
Operating expenses	-9 527	-9 660	-35 312	-36 022
Share of net income from joint ventures	6	-15	2	4
Operating profit before depreciation (EBITDA)	655	600	2 282	2 122
Depreciation	-250	-226	-919	-910
Operating profit (EBIT)	405	374	1 364	1 213
Financial income	14	18	70	80
Financial costs	-26	-1	-92	-91
Pre-tax profit, continued operations	393	392	1 342	1 202
Tax expenses	-97	-97	-313	-279
Post-tax profit, continued operations	296	295	1 029	922
of which non-controlling interests	-6	19	71	81
Post-tax profit, discontinued operations		-4		1 266
of which non-controlling interests		-		-
Post-tax profit for the period	296	290	1 029	2 189
Profit per share (NOK), continued operations	2.2	2.0	7.1	6.2
Profit per share (NOK), discontinued operations		0.0		9.4
Profit per share (NOK), continued and discontinued operations	2.2	2.0	7.1	15.6

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
Post-tax profit for the period	296	290	1 029	2 189
Revaluation of pensions	-39	-37	-39	-37
Net items that will not be reclassified subsequently to profit or loss	-39	-37	-39	-37
Currency translation differences	-30	-71	-82	40
Fair value adjustment of financial assets	-1	32	46	-47
Net items that may be reclassified subsequently to profit or loss	-30	-39	-36	-7
Total comprehensive income	228	214	954	2 144
of which non-controlling interests	-7	19	68	84

Net items that will not be reclassified subsequently
Net items that may be reclassified subsequently

STATEMENT OF FINANCIAL POSITION VEIDEKKE GROUP1)

Figures in NOK million	31 Dec 2021	31 Dec 2020
ASSETS
Non-current assets
Goodwill	1 758	1 824
Other intangible assets	150	130
Land and buildings	1 381	1 318
Plant and machinery	2 404	2 411
Investments in joint ventures	150	197
Financial assets	479	571
Total non-current assets	6 323	6 452
Current assets
Residential projects	10	32
Inventories	580	580
Trade and other receivables, contract assets	6 050	6 718
Financial investments	539	540
Cash and cash equivalents	3 814	3 219
Total current assets	10 992	11 089
Total assets	17 315	17 541
EQUITY AND LIABILITIES
Equity
Share capital	67	67
Other equity	2 781	2 785
Non-controlling interests	17	25
Total equity	2 865	2 877
Non-current liabilities
Pensions and deferred tax liabilities	1 176	1 136
Bonds	600	600
Amounts due to credit institutions	162	198
Other non-current liabilities	1 358	1 097
Total non-current liabilities	3 297	3 031
Current liabilities
Debt to credit institutions	13	29
Trade payables and warranty provisions	6 723	7 113
Public duties and taxes payable	1 106	1 102
Other current liabilities and contract liabilities	3 310	3 389
Total current liabilities	11 153	11 633
Total equity and liabilities	17 315	17 541

STATEMENT OF CASH FLOWS

CONTINUED OPERATIONS

Figures in NOK million	Q4 2021	Q4 2020	2021	2020
Pre-tax profit, continued operations	393	392	1 342	1 202
Tax paid	-62	4	-128	-81
Depreciation/impairment	250	226	919	909
Other operational items	276	242	61	319
Cash flow from operating activities	856	864	2 194	2 350
Acquisition/disposal of property, plant and equipment	-256	-269	-473	-681
Other investing activities	142	35	177	-70
Short-term bond fund investment	-	-540	-	-540
Change in interest-bearing receivables	-8	-38	15	-
Cash flow from investing activities	-121	-812	-282	-1 291
Change in interest-bearing liabilities	-49	59	-90	-2 074
Dividend paid	-	-3 037	-776	-3 037
Change in liabilities, discontinued operations	-	-	-	4 158
Other financial items	-211	-31	-448	-314
Cash flow from financing activities	-259	-3 008	-1 314	-1 266
Total cash flow from continued operations	476	-2 956	598	-208
Cash flow from discontinued operations		34		3 103
Change in cash and cash equivalents	476	-2 922	598	2 895
Cash and cash equivalents, start of period	3 340	6 142	3 219	318
Exchange rate adjustment foreign cash balances	-1	-	-3	7
Cash and cash equivalents, end of period	3 814	3 219	3 814	3 219

TOTAL OPERATIONS (CONTINUED AND DISCONTINUED OPERATIONS)

Pre-tax profit, total operations
Gains from sale of operations
Depreciation/impairment
Other operational items
Cash flow from operating activities
Acquisition/disposal of property, plant and equipment
Sale of subsidiaries
Other investing activities
Cash flow from investing activitiest
Change in interest-bearing liabilities
Dividend paid
Other financial items
Cash flow from financing activities
Change in cash and cash equivalents

Figures in NOK million	Q4 2021	Q4 2020	2021	2020
Pre-tax profit, total operations	393	392	1 342	2 451
Gains from sale of operations	-	-	-29	-1 153
Depreciation/impairment	250	226	919	914
Other operational items	213	280	-38	58
Cash flow from operating activities	856	898	2 194	2 270
Acquisition/disposal of property, plant and equipment	-256	-269	-473	-682
Sale of subsidiaries	-	-	135	6 968
Other investing activities	135	-543	56	-621
Cash flow from investing activitiest	-121	-812	-282	5 664
Change in interest-bearing liabilities	-49	130	-90	-1 550
Dividend paid	-	-3 071	-776	-3 071
Other financial items	-211	-67	-448	-418
Cash flow from financing activities	-259	-3 008	-1 314	-5 039
		-
Change in cash and cash equivalents	476	-2 922	598	2 895
Cash and cash equivalents, start of period	3 340	6 142	3 219	318
Exchange rate adjustment foreign cash balances	-1	-	-3	7
Cash and cash equivalents, end of period	3 814	3 220	3 814	3 219

NET INTEREST-BEARING POSITION

Figures in NOK million	31 Dec 2021	31 Dec 2020
Cash and cash equivalents	3 814	3 219
Interest-bearing assets (short-term)	539	540
Interest-bearing assets (long-term)	132	145
Interest-bearing liabilities	-776	-827
Net interest-bearing position	3 709	3 078

OTHER KEY FIGURES

Figures in NOK million	31 Dec 2021	31 Dec 2020
Order backlog (NOK million)	38 084	37 460
Equity ratio	17%	16%
Return on equity past 12 months	38%	53%
Number of employees (Total operations)	7 796	8 082

BUSINESS SEGMENTS

CONSTRUCTION NORWAY
INFRASTRUCTURE NORWAY
CONSTRUCTION SWEDEN
INFRASTRUCTURE SWEDEN

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31. Dec 2020
CONSTRUCTION NORWAY
Revenue	3 474	4 076	13 514	14 638
Operating expenses	-3 288	-3 882	-12 845	-13 976
Share of net income from joint ventures	-	-	-	-
Depreciation/impairment	-51	-45	-180	-168
Operating profit (EBIT)	134	149	489	494
Net financial items	5	6	18	38
Pre-tax profit (EBT)	139	155	507	532
Total assets, segment	6 602	6 924	6 602	6 924
INFRASTRUCTURE NORWAY
Revenue	2 448	2 049	9 147	8 847
Operating expenses	-2 186	-1 848	-8 190	-8 103
Share of net income from joint ventures	3	4	2	5
Depreciation/impairment	-122	-113	-458	-457
Operating profit (EBIT)	144	93	502	292
Net financial items	-10	-10	-40	-48
Pre-tax profit (EBT)	134	82	462	244
Total assets, segment	4 921	5 066	4 921	5 066
CONSTRUCTION SWEDEN
Revenue	2 491	2 238	8 544	7 867
Operating expenses	-2 418	-2 172	-8 285	-7 624
Share of net income from joint ventures	-4	-1	-6	-
Depreciation/impairment	-34	-22	-92	-82
Operating profit (EBIT)	34	43	160	162
Net financial items	-1	6	6	13
Pre-tax profit (EBT)	34	49	166	175
Total assets, segment	3 222	3 032	3 222	3 032
INFRASTRUCTURE SWEDEN
Revenue	1 316	1 287	4 345	4 426
Operating expenses	-1 238	-1 184	-4 076	-4 156
Share of net income from joint ventures	-	-25	-16	-25
Depreciation/impairment	-23	-29	-117	-116
Operating profit (EBIT)	55	48	137	130
Net financial items	-2	-	-4	-1
Pre-tax profit (EBT)	53	49	133	128
Total assets, segment	1 563	1 500	1 563	1 500

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
DENMARK
Revenue	590	686	2 362	2 652
Operating expenses	-513	-604	-2 138	-2 429
Share of net income from joint ventures	-	-	-	-
Depreciation/impairment	-6	-6	-24	-29
Operating profit (EBIT)	71	76	200	194
Net financial items	-	2	-	6
Pre-tax profit (EBT)	70	78	200	200
Total assets, segment	1 739	1 828	1 739	1 828
OTHER OPERATIONS1)
Revenue	43	-1	162	49
Operating expenses	-67	-32	-253	-142
Share of net income from joint ventures	7	7	22	23
Depreciation/impairment	-15	-11	-51	-56
Operating profit (EBIT)	-32	-37	-119	-127
Net financial items	-4	13	-2	-19
Pre-tax profit (EBT)	-37	-24	-121	-146
GROUP ELIMINATIONS CONTINUED OPERATIONS
Revenue	-185	-60	-482	-339
Operating expenses	184	61	474	339
Share of net income from joint ventures	-	-	-	-
Depreciation/impairment		-	2	-
Operating profit (EBIT)	-1	2	-6	1
Net financial items	-	-	-	-
Pre-tax profit (EBT)	-1	2	-6	1
TOTAL VEIDEKKE GROUP SEGMENT ACCOUNTS CONTINUED OPERATIONS
Revenue	10 176	10 274	37 592	38 140
Operating expenses	-9 527	-9 660	-35 312	-36 090
Share of net income from joint ventures	6	-15	2	4
Depreciation/impairment	-250	-226	-919	-909
Operating profit (EBIT)	405	374	1 364	1 145
Net financial items	-12	18	-22	-11
Pre-tax profit (EBT)	393	391	1 342	1 134
Total assets, segment	17 315	17 541	17 315	17 541

1) Other operations include shared services for the group's Norwegian units and the group's net financial items and central unassigned costs.

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
PROPERTY DEVELOPMENT (UNTIL AUGUST 2020)
Revenue		-		1 893
Operating expenses		-		-1 748
Share of net income from joint ventures		-		179
Depreciation/impairment		-		-4
Operating profit (EBIT)		-		320
Net financial items		-		-2
Pre-tax profit (EBT)		-		318
ELIMINATIONS BETWEEN PROPERTY DEVELOPMENT AND CONTINUED OPERATIONS, GAIN FROM SALE OF PROPERTY DEVELOPMENT OPERATIONS
Revenue		-		-721
Operating expenses		-		721
Share of net income from joint ventures		-		-
Depreciation/impairment		-		-
Gain from sale of property development operations		-3		591
Operating profit (EBIT)		-3		591
Net financial items		-		-
Pre-tax profit (EBT)		-3		591
TOTAL VEIDEKKE GROUP SEGMENT ACCOUNTS (CONTINUED AND DISCONTINUED OPERATIONS)
Revenue	10 176	10 274	37 592	39 313
Operating expenses	-9 527	-9 660	-35 312	-37 117
Share of net income from joint ventures	6	-15	2	183
Depreciation/impairment	-250	-226	-919	-914
Gain from sale of property development operations	-	-3	-	591
Operating profit (EBIT)	405	371	1 364	2 056
Net financial items	-12	18	-22	-13
Pre-tax profit (EBT)	393	389	1 342	2 043
Tax expenses	-97	-100	-313	-290
Post-tax profit	297	289	1 029	1 753
Total assets, segment	17 315	17 541	17 315	17 541

RECONCILIATION OF SEGMENT ACCOUNTS AND FINANCIAL ACCOUNTS

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
TOTAL VEIDEKKE GROUP SEGMENTS (CONTINUED AND DISCONTINUED OPERATIONS)
Revenue	10 176	10 274	37 592	39 313
Operating expenses	-9 527	-9 660	-35 312	-37 117
Share of net income from joint ventures	6	-15	2	183
Depreciation/impairment	-250	-226	-919	-914
Gain from sale of property development operations	-	-3	-	591
Operating profit (EBIT)	405	371	1 364	2 056
Net financial items	-12	18	-22	-13
Pre-tax profit (EBT)	393	389	1 342	2 043
Income tax expenses	-97	-100	-313	-290
Post-tax profit	296	289	1 029	1 753
Total assets, segment	17 315	17 541	17 315	17 541

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
TOTAL IFRS ADJUSTMENTS
Revenue		-		-408
Operating expenses		-		362
Share of net income from joint ventures		-		21
Depreciation/impairment		-		-
Gain from sale of property development operations		-		433
Operating profit (EBIT)		-		408
Net financial items		-		-
Pre-tax profit (EBT)		-		408
Income tax expenses		-		28
Post-tax profit		-		436

SEPARATION OF DISCONTINUED OPERATIONS

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
SEPARATION OF DISCONTINUED OPERATIONS
Revenue		-		-765
Operating expenses		-		733
Share of net income from joint ventures		-		-200
Depreciation/impairment		-		4
Gain from sale of property development operations		1		-1 024
Operating profit (EBIT)		1		-1 252
Net financial items		-		2
Pre-tax profit (EBT)		1		-1 249
Income tax expenses		3		-17
Post-tax profit		4		-1 266

TOTAL VEIDEKKE GROUP FINANCIAL ACCOUNTS (CONTI NUED OPERATIONS)

Figures in NOK million	Q4 2021	Q4 2020	At 31 Dec 2021	At 31 Dec 2020
TOTAL VEIDEKKE GROUP FINANCIAL ACCOUNTS (CONTI NUED OPERATIONS)
Revenue	10 176	10 274	37 592	38 140
Operating expenses	-9 527	-9 660	-35 312	-36 022
Share of net income from joint ventures	6	-15	2	4
Depreciation/impairment	-250	-226	-919	-909
Operating profit (EBIT)	405	374	1 364	1 213
Net financial items	-12	18	-22	-11
Pre-tax profit (EBT)	393	391	1 342	1 202
Income tax expenses	-97	-97	-313	-279
Post-tax profit	296	295	1 029	922
Total assets group	17 315	17 541	17 315	17 541

STATEMENT OF CHANGES IN EQUITY

	MINORITY
	EQUITY HOLDERS OF VEIDEKKE ASA Other compre hensive								Non
	Share	Other paid-in	Reeval. of	Currency translation	Other retained	Fair value adjust	income, discont.		controlling
Figures in NOK million	capital	capital 1)	pensions	differences	earnings	ments2)	operations	Total	interests	Total
Equity at 1 January 2020	67	419	-9	-17	3 405	-93		34 3 807		142 3 949
Profit	-	-		-	2 108	-		2 108	81	2 189
Other comprehensive income	-	-	-37	71	15	-63	-34	-48	3	-45
IFRS 2 – share-based transactions employees					4			4		4
Transactions, non-controlling interests					18			18	-48	-30
Change, non-controlling interests, housing cooperatives in Sweden								-	-119	-119
Dividend	-	-		-	-3 037	-		-3 037		-35 -3 071
Equity at 31 Dec 2020	67	419	-46	54	2 514	-156		- 2 853		25 2 877
Equity at 1 January 2021	67	419	-46	54	2 514	-156		- 2 853		25 2 877
Profit for the year	-	-		-	958	-		958		71 1 029
Other comprehensive income	-	-	-39	-79	-	46	-	-72	-3	-75
IFRS 2 – share-based transactions employees					-38			-38		-38
Additions from acquisitions of operations – non-controlling interests								-	22	22
Transactions, non-controlling interests					-76			-76	-38	-114
Dividend	-	-		-	-776	-		-776	-60	-836
Equity at 31 December 2021	67	419	-85	-25	2 581	-110		- 2 848		17 2 865

1) Paid-in capital over and above nominal value of shares.

2) Value adjustment of shares available for sale as well as hedging instruments that are booked as hedging. No purchase of own shares were made in 2021.

NOTE 1. GENERAL INFORMATION

Veidekke is one of Scandinavia's largest construction companies. The company is headquartered in Oslo and is listed on the Oslo Stock Exchange. The consolidated accounts for Q4 2021 include Veidekke ASA and its subsidiaries and the group's investments in associates and joint ventures.

On 1 September 2020, Veidekke transferred the group's property development operation to new owners. The

decision to sell the property development operation has influenced the presentation of both the profit and loss account and the balance sheet for 2020. Reference is made to Note 2 Accounting principles. Through the sale of the property development operation, Veidekke has become a streamlined construction business.

Accounting figures in quarterly accounts are not audited.

NOTE 2. ACCOUNTING PRINCIPLES

The group's financial reports are prepared in accordance with international accounting standards (IFRS) approved by the EU. The quarterly accounts have been prepared in accordance with IAS 34 on interim financial reporting, and comply with applicable stock-exchange rules. The quarterly accounts were prepared in accordance with the same accounting principles as the annual accounts for 2020.

The decision to divest the property development operation had far-reaching effects on the presentation of Veidekke's accounts. As a result of the decision, the accounting standard "IFRS 5 Non-current assets held for sale" became applicable, and the property development operation was reported on separately in the accounts. The purpose of the accounting standard is to present accounting figures for continued operations separately from operations which have been sold or offered for sale. This means that the accounting figures presented can be compared to previous periods, when the property development operation was not yet sold.

The accounting standard IFRS 5 Non-current assets held for sale

Veidekke will present a disposal group as being held for sale if the balance sheet value will largely be recovered through a sale transaction and such a transaction is highly likely to occur within one year. The disposal group is valued at the lower of balance sheet value and actual value, less sale costs. An operation held for sale is an operational unit which has been disposed of or which is classified as held for sale and represents a separate and material operation. The post-tax profit/loss of an operation held for sale is presented on a separate line in the profit and loss account, recalculated for earlier periods. Internal transactions between continued operations and operations held for sale are eliminated on the line in the accounts entitled Post-tax profit/loss, discontinued operations. This ensures that continued operations reflect, to the greatest possible degree, the position of this part of the business after completion of the sale.

BUSINESS AREAS

	Construction Norway		Infrastructure Norway		Construction Sweden1)		Infrastructure Sweden1)		Denmark		Other		Eliminations		Group, continued operations
Figures in NOK million	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20	At 31 Dec 21	At 31 Dec 20
INCOME STATEMENT
Revenue	13 514	14 638	9 147	8 847	8 544	7 867	4 345	4 426	2 362	2 652	162	49	-482	-339	37 592	38 140
Operating expenses	-12 845	-13 976	-8 190	-8 103	-8 285	-7 624	-4 076	-4 156	-2 138	-2 429	-253	-142	474	339	-35 312	-36 090
Share of net income from joint ventures	-	-	2	5	-6	-	-16	-25	-	-	22	23	-	-	2	4
Depreciation	-180	-168	-458	-457	-92	-82	-117	-116	-24	-29	-51	-56	2	-	-919	-909
Operating profit	489	494	502	292	160	162	137	130	200	194	-119	-127	-6	1	1 364	1 145
Net financial items	18	38	-40	-48	6	13	-4	-1	-	6	-2	-19	-	-	-22	-11
Profit before tax	507	532	462	244	166	175	133	128	200	200	-121	-146	-6	1	1 342	1 134
STATEMENT OF FINANCIAL POSITION
Non-current assets	1 371	1 295	2 565	2 569	917	1 120	593	610	220	244	2 864	2 805	-2 207	-2 191	6 323	6 451
Current assets	2 198	2 174	2 119	2 471	1 356	1 328	588	574	270	273	1 727	2 058	-1 080	-1 007	7 178	7 870
Cash and cash equivalents	3 033	3 455	237	26	949	585	382	315	1 249	1 311	1 282	743	-3 318	-3 216	3 814	3 219
Total assets	6 602	6 924	4 921	5 066	3 222	3 032	1 563	1 500	1 739	1 828	5 873	5 606	-6 605	-6 415	17 315	17 541
Equity	1 121	1 164	914	939	390	571	259	191	416	418	1 914	1 766	-2 149	-2 171	2 865	2 878
Non-current liability	925	869	1 051	1 425	696	620	92	93	107	114	3 777	3 146	-3 350	-3 234	3 297	3 031
Current liabilities	4 556	4 892	2 955	2 702	2 136	1 842	1 212	1 216	1 216	1 296	183	695	-1 105	-1 010	11 153	11 632
Total equity and liabilities	6 602	6 924	4 921	5 066	3 222	3 032	1 563	1 500	1 739	1 828	5 873	5 606	-6 605	-6 415	17 315	17 541
KEY FIGURES
Number of employees	2 821	2 931	2 193	2 363	1 172	1 176	1 069	1 053	409	436	132	124	-	-	7 796	8 082
Order backlog	13 537	13 358	7 477	7 206	9 483	8 885	4 774	5 495	2 813	2 516	-	-	-	-	38 084	37 460
- due for completion within 12 months	9 148	9 602	3 523	3 362	6 082	5 773	2 641	2 738	1 644	2 145	-	-	-	-	23 039	23 619

1) Veidekke has amended its segment structure in Sweden as of Q3 2021. Accordingly, Veidekke Sweden has been split into two new operational entities:

Construction Sweden and Infrastructure Sweden. The changes is in line with Veidekke's strategic orientation as a streamlined construction company

and secures a clear organisational structure with an operational focus and shorter lines of communication between management and projects.

NOTE 3. SEGMENT INFORMATION

BUSINESS AREAS
		Group,			Eliminations between continued operations and Property development,
		continued operations	Property development		gains from sale		Group
Figures in NOK million				At 31 Dec 21 At 31 Dec 20 At 31 Dec 21 At 31 Dec 20 At 31 Dec 21 At 31 Dec 20 At 31 Dec 21 At 31 Dec 20
INCOME STATEMENT
Revenue	37 592	38 140		1 893		-721	37 592	39 313
Operating expenses	-35 312	-36 090		-1 748		721	-35 312	-37 117
Share of net income from joint ventures	2	4		179		-	2	183
Depreciation	-919	-909		-4		-	-919	-914
Gain from sale of property development operations		-		-		591	-	591
Operating profit	1 364	1 145		320		591	1 364	2 056
Net financial items	-22	-11		-2		-	-22	-13
Profit before tax	1 342	1 134		318		591	1 342	2 043
STATEMENT OF FINANCIAL POSITION AT 30 JUNE
Non-current assets	6 323	6 451		-		-	6 323	6 451
Current assets	7 178	7 870		-		-	7 178	7 870
Cash and cash equivalents	3 814	3 219		-		-	3 814	3 219
Total assets	17 315	17 541		-		-	17 315	17 541
Equity	2 865	2 878		-		-	2 865	2 878
Non-current liability	3 297	3 031		-		-	3 297	3 031
Current liabilities	11 153	11 632		-		-	11 153	11 632
Total equity and liabilities	17 315	17 541		-		-	17 315	17 541
KEY FIGURES
Number of employees	7 796	8 082					7 796	8 082
Order backlog	38 084	37 460					38 084	37 460
- due for completion within 12 months	23 039	23 619					23 039	23 619

NOTE 4. OPERATING INCOME

The tables below show the group's revenues split into service areas.

Figures in NOK million	Construction Norway	Infrastructure Norway	Construction Sweden	Infrastructure Sweden	Denmark	Other	Group
Service area
Apartments and small houses	5 728	-	2 605	-	101	-	8 434
Commercial buildings	2 790	-	3 768	-	1 506	-	8 064
Public buildings	3 662	-	2 017	-	539	-	6 218
Transport infrastructure – road	90	414	-	602	-	-	1 106
Transport infrastructure – rail	195	1 972	-	239	-	-	2 406
Industry and energy	-	3 214	-	1 682	-	-	4 896
Other civil engineering	1 049	2 236	154	1 822	216	-	5 476
Maintenance contracts (road maintenance)	-	1 311	-	-	-	-	1 311
Other / Eliminations	-	-	-	-	-	-320	-320
Total 31 Dec 2021	13 514	9 147	8 544	4 345	2 362	-320	37 592

Figures in NOK million	Construction Norway	Infrastructure Norway	Construction Sweden	Infrastructure Sweden	Denmark	Other	Group
Service area
Apartments and small houses	5 819	-	2 396	-	58	-	8 274
Commercial buildings	3 608	-	3 681	-	2 060	-	9 349
Public buildings	3 598	-	1 789	-	291	-	5 678
Transport infrastructure – road	53	300	-	700	-	-	1 053
Transport infrastructure – rail	-	2 774	-	773	-	-	3 547
Industry and energy	36	2 914	-	1 238	-	-	4 188
Other civil engineering	1 524	1 584	-	1 715	243	-	5 066
Maintenance contracts (road maintenance)	-	1 275	-	-	-	-	1 275
Other / Eliminations	-	-	-	-	-	-290	-290
Total 31 Dec 2020	14 638	8 847	7 867	4 426	2 652	-290	38 140

NOTE 7. OPERATIONS SIGNIFICANTLY AFFECTED BY SEASONAL FLUCTUATIONS

The group's asphalt and aggregates operations, which report under the Infrastructure business area, is subject to seasonal fluctuations related to climatic conditions. Production takes place mainly between May and October, and the bulk of the operation's turnover is consequently generated during this period. However, costs related to salaried employees, maintenance of production facilities and depreciation accrue throughout the year. As a result, quarterly accounts for the Infrastructure business area will normally fluctuate significantly.

NOTE 8. ACQUISITIONS, SALES OF OPERATIONS

In the first quarter of 2021, Infrastructure Norway sold its asphalt and aggregates operation in Rogaland. The decision to divest was based on an assessment of the group's asphalt and aggregates positions in Norway, and on the fact that Veidekke has not achieved satisfactory profitability from the Rogaland asphalt operation. The divested operation had a revenue of NOK 125 million in 2020, with a slightly negative result. The operation was sold for NOK 135 million, resulting in an accounting profit before tax of NOK 29 million. The transaction was recognised under Infrastructure in the first quarter 2021 accounts.

NOTE 9. FINANCIAL INSTRUMENTS

There were no significant changes during the period related to financial risk and the group's use of financial instruments. For further details, see the annual report for 2020.

NOTE 10. DIVIDENDS

The annual general meeting on 5 May 2021 approved a dividend payment of NOK 5.75 per share for the financial year 2020, amounting to NOK 776 million in total. The dividend has been recognised in the accounts for the second quarter 2021.

NOTE 5. ESTIMATES

Veidekke's operations comprise construction projects. Accounting for project activities is largely based on estimates. Significant judgements used in applying the group's accounting policies as well as main sources of estimate uncertainty are the same at the end of Q4 2021 as in the 2020 annual accounts.

NOTE 6. NON-CURRENTS ASSETS

Figures in NOK million	Q4 2021	Q4 2020	31 Dec 2021	31 Dec 2020
PROPERTY, PLANT, EQUIPMENT AND OTHER INTANGIBLE ASSETS
Carrying amount at start of period	3 694	3 818	3 859	3 990
Additions	504	302	1 200	818
Additions from acquisitions of operations	-3	-	84	1
Depreciation / amortisation	-240	-226	-908	-909
Currency translation differences, etc.	-19	-13	-55	76
Disposals of non-current assets	-	-21	-245	-116
Carrying amount at end of period	3 935	3 859	3 935	3 859
of which rights of use (leases)	896	768	896	768
Other intangible assets	150	130	150	130
Land and buildings	1 381	1 318	1 381	1 318
Plant and machinery	2 404	2 411	2 404	2 411
Carrying amount at end of period	3 935	3 859	3 935	3 859
Figures in NOK million	Q4 2021	Q4 2020	31 Dec 2021	31 Dec 2020
GOODWILL
Carrying amount at start of period	1 792	1 837	1 824	1 790
Additions	-	-	15	-
Impairment	-11	-	-11	-
Currency translation differences	-21	-13	-56	83
Disposals	-3	-	-14	-49
Carrying amount at end of period	1 758	1 824	1 758	1 824

FOURTH QUARTER 2021

NOTE 11. LOAN AGREEMENT COVENANTS

Veidekke has a NOK 1.75 billion overdraft facility with DNB (rolling 364-day maturity) and a NOK 0.75 billion credit facility with SEB (with maturity until December 2023 and two one-year extension options). Both facilities remained unutilised as at year-end 2021.

Cash and cash equivalents amounts to NOK 3.8 billion, including NOK 1.9 billion invested in money market funds. Veidekke has also invested NOK 0.5 billion in bond funds, and this investment has been classified as Financial investments in the Statement of financial position.

After quarter-end, in January 2022, Veidekke implemented a voluntary buy-back of its VEI10 bond loan, which has a maturity date of 19 March 2025. As at 31 December 2021, the loan had an outstanding volume of NOK 600 million, of which a total of NOK 407 million was bought back at a price of NOK 103.20, with a payment date of 20 January. Following the buy-back offer, Veidekke's bond loan stands at NOK 193 million.

NOTE 12. EVENTS AFTER THE REPORTING DATE

No events have occurred after the balance sheet date which would have had a material effect on the issued accounts.

NOTE 13. ALTERNATIVE PERFORMANCE MEASURES

Veidekke generally reports its financial results in line with International Financial Reporting Standards (IFRS). In addition, the following alternative performance measures are also reported:

Net interest-bearing position

This key figure expresses the group's financial position and is determined on the basis of the group's capitalised interest-bearing debt on the date of calculation, less bank deposits and interest-bearing receivables, both current and non-current. This key figure is also included in the calculation of covenants in the loan agreement.

Order backlog

The order backlog provides an indication of future activity in the group's construction operations. The order backlog is defined as contracted and signed contracts on the measurement date. This key figure also includes road maintenance contracts in Infrastructure's Road maintenance unit.

Invested capital

The return on invested capital is calculated by dividing the pre-tax profit/loss plus interest costs over the previous 12 months by the average invested capital over the same period.

The average invested capital is calculated by averaging invested capital over the four preceding quarters.

Invested capital comprises equity and interest-bearing debt. Interest-bearing receivables and cash are excluded from the definition of interest-bearing debt.

Return on equity

This key figure indicates the return on equity during the period. It is calculated by dividing the post-tax profit by average equity.

Post-tax profit last 12 months

Average equity last 12 months

Average equity over the last 12 months is calculated by averaging equity over the preceding four quarters.

Veidekke ASA Skabos vei 4 P.O. Box 505 Skøyen 0214 Oslo

+47 21 05 50 00 veidekke.com