Veidekke

Earnings Release • May 6, 2021

Veidekke ASA: Q1 2021 results and capital markets update

Veidekke ASA: Q1 2021 results and capital markets update

Veidekke is reporting its Q1 2021 results today and holding its capital markets

update, at which the group will present targets and plans for further

profitability improvements in the period to 2025.

"We have improved profitability and the robustness of the project portfolio

considerably over the past two years. However, Veidekke has further potential,

and we have high operational ambitions for the years ahead," says Group CEO

Jimmy Bengtsson.

Following the sale of the property development operation in 2020, Veidekke is

now a streamlined construction company, and among the leading companies in the

Scandinavian construction industry. The recently implemented improvement

measures have successfully strengthened profit margins. To increase

profitability further and to enable Veidekke to continue paying an attractive

dividend to shareholders, the company is emphasising reinforcement of its

positions in key markets.

For the period to 2025,Veidekke is targeting selective growth in its primary

Scandinavian markets and a pre-tax profit margin of 5%. The company is also

increasing its dividend ratio target to over 70% of pre-tax profits.

"We have already shown that we can improve profitability, and have now

formulated a clear, focused strategy for securing further improvement. The

strategy rests on four pillars: passion for our customers and the projects we

take on; playing an active, commercially-focused role in the green shift;

vetting every decision against risk; and building a vibrant corporate culture

that enjoys strong staff support and is rooted in our history," says Bengtsson.

"Veidekke has made the important strategic decision to play a leading role in

achieving the green shift, which we believe will open up new market

opportunities and generate added value for customers, society - and for

Veidekke," says Bengtsson.

Q1 2021 results

Veidekke achieved revenues of NOK 8.3 billion in the first quarter, and a pre

-tax profit of NOK 28 million. Revenues were on a par with Q1 2020, while

profits improved from NOK -116 million. Profits for the quarter included a gain

on the sale of operations of NOK 39 million, while the result in the first

quarter last year included an unrealised loss and extraordinary costs amounting

to NOK 85 million in total. The Q1 order intake totalled NOK 9.8 billion,

bringing the order book to NOK 37.9 billion as at 31 March 2021.

"Veidekke has delivered a good first-quarter performance in line with targets

and plans. We have improved our profits and profitability and strengthened the

order book in what is seasonally a weak quarter for the group. Our

infrastructure operations in Norway and operations in Denmark recorded an

improvement in profitability, while Veidekke Construction in Norway and Veidekke

Sweden achieved results on a par with the first quarter of last year," concludes

Jimmy Bengtsson.

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

Securities Trading Act.

For more information, please contact:

Jimmy Bengtsson, Group 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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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 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.