Veidekke

Earnings Release • Jul 8, 2021

Veidekke ASA: New operation and maintenance contracts valued at NOK 1.9 billion

Veidekke ASA: New operation and maintenance contracts valued at NOK 1.9 billion

During the spring Veidekke has entered into six new contracts for the operation

and maintenance of national and county roads with the Norwegian Public Roads

Administration and three county municipalities. The contracts have a duration

from four to six years with options for extensions, and the overall value of the

contracts is NOK 1.9 billion excluding VAT.

Operation and maintenance includes routine operational tasks and minor

maintenance tasks on the road network (including pedestrian and cycle paths) to

ensure safe and efficient traffic and maintain the roads to ensure the desired

service life. In practice this means clearing, gritting, salting, maintaining

landscape areas, tunnel and sign cleaning, clearing ditches and drains, cleaning

roads and rest areas and emergency preparedness in the event of accidents and

extreme weather conditions.

"We are very pleased with the results in the spring's tender rounds. Especially

because our industry is in such great development with regard to considerations

to the climate/environment and restructuring due to the county road reform. At

the same time we have worked hard and long to achieve healthy finances. Now

we're looking forward to taking over responsibility for the six new contracts in

September and doing everything we can to ensure that road users have as good and

safe driving conditions as possible," says director Kjell Otto Bragstad with

Veidekke Infrastruktur.

The new contracts enter into force from 1 September. At that point Veidekke will

have 23 ongoing operation and maintenance contracts for national and county

roads from Nordland in the north to Agder in the south with annual revenues

totalling around NOK 1.3 billion excluding VAT.

The new contracts that are included in Veidekke's order backlog for Q2 2021:

Client Value Where Duration (option)

Viken county 356 Romerike east 2021-2027 (1 year)

municipality 799

447

Viken county 240 Romerike central 2021-2026 (1 year)

municipality 496

047

Vestfold county 383 Sunnfjord south 2021-2026 (1-4 years)

municipality 801

487

Trøndelag county 393 Steinkjer 2021-2026 (1-4 years)

municipality 069

527

Trøndelag county 301 Indre Namdal 2021-2026 (1-4 years)

municipality 470

161

Norwegian Public 236 Steinkjer(national roads) 2021-2025 (1-4 years)

Roads 713

Administration 623

For more information please contact:

Kjell Otto Bragstad, Director of Road Maintenance, tel. +47 977 47 097, kjell

-otto.bragstad@veidekke.no

Helge Dieset, Communications Manager of Veidekke, tel. +47 90 55 33 22,

helge.dieset@veidekke.no

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

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest contractors. The company undertakes all

types of construction and civil engineering contracts, maintains roads, and

produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and

local experience. Its annual turnover is approx. NOK 38 billion, and around half

of its 8,100 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.