Veidekke

Earnings Release • Mar 26, 2021

Veidekke ASA: Annual and sustainability report 2020

Veidekke ASA: Annual and sustainability report 2020

Veidekke publishes its annual and sustainability report for 2020 today. In a

year marked by the Covid-19 pandemic, Veidekke delivered a strong financial

performance and implemented significant changes.

After making important strategic and organisational changes in 2020, Veidekke is

now a streamlined construction company. In June, Veidekke signed an agreement to

sell its property development operation, a transaction which released

substantial value. The establishment of Veidekke Infrastructure allowed the

group to amalgamate its Norwegian civil engineering and industrial operations to

give civil engineering clients a more coordinated offering.

"We made good progress on our projects and increased our activity level and

profitability in a year of great change. This has allowed Veidekke to start 2021

as a streamlined construction company with a robust financial position and

strong market shares in a Scandinavian region that is transitioning into a low

-emissions society," says Group CEO Jimmy Bengtsson.

Following this strategic reorientation, Veidekke presented three key priorities

for the years ahead: effective measures to improve profitability, selective

growth in key markets and payment of an attractive dividend to shareholders.

Veidekke delivered on these priorities in 2020: the total profits of continued

operations almost doubled compared to 2019 thanks to improvements in all

operational areas. Veidekke's growth is concentrated in densely populated

regions in and around major cities in Scandinavia. Last, but not least,

Veidekke's shareholders received a total dividend of NOK 22.50 per share

following the sale of the property development operation.

The construction industry is labour-intensive, and key priorities in 2020 were

to maintain production and progress on the hundreds of projects being executed

by the group all over Scandinavia and to prevent infections at both construction

and civil engineering sites and offices. These efforts were largely successful.

"The Covid-19 pandemic has shown us that even though we cannot always control

our circumstances, we can decide how to respond to them. Time and again, our

staff have demonstrated an exceptional ability to find good solutions that have

enabled Veidekke to keep its promises to clients and shareholders while still

safeguarding workplace health and safety. The flexibility, professionalism and

loyalty of our staff make me very optimistic about Veidekke's future," says

Bengtsson.

Veidekke's annual report includes the group's sustainability report, which

provides an overview of the group's sustainability efforts in key areas like

health and safety, climate impact, expertise and compliance.

"Sustainability is founded on cooperation between society and businesses towards

a common goal. Veidekke wants to help overcome societal challenges and build a

better future for all. By making our operations sustainable, we can create a

safe and positive work environment. Sustainable solutions are both a

prerequisite for our success in the transition towards a low-emissions society

and key to realising new opportunities," says Jimmy Bengtsson.

Veidekke supports the UN Sustainable Development Goals, and sustainability is

being integrated ever more closely into Veidekke's strategies and processes. In

2020, the group entered into a financing agreement with SEB that incorporates

sustainability targets. In addition, bonus schemes for senior executives now

include consideration of climate and diversity performance.

Climate change is impacting Veidekke's operating framework, and identification

of climate risks is integrated into the group's ongoing risk assessments and

strategic planning. In accordance with the Paris Agreement, Veidekke has adopted

the targets of reducing its own greenhouse gas emissions by 50% by 2030 and 90%

by 2050. In 2020, the group launched a greenhouse gas budget broken down by

operation, and will begin quarterly reporting in 2021.

The construction and civil engineering industry has a higher-than-average injury

rate, and injury reduction is a top priority for Veidekke. Six years ago, the

group adopted the target of zero serious injuries by 2020, and has worked to

reduce injury rates in all operations since then.

"Our new safety measures and intensified information campaigns have reduced the

number of serious injuries by over 90%. However, the three serious injuries

registered in 2020 are three too many, and the operations will therefore

continue their injury-reduction efforts," says Jimmy Bengtsson.

Download Veidekke's annual and sustainability report for 2020 at

www.veidekke.com (http://veidekke.com/en/reports-and-presentations/). A pdf

version of the report is attached. The report meets all regulatory content

requirements for annual reports and accounts, in addition to information

concerning corporate governance, shareholder information and sustainability.

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

Securities Trading Act.

For more information, contact:

Lars Erik Lund, EVP +47 413 31 369

Jørgen Wiese Porsmyr, CFO +47 907 59 058

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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 8,100 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.