Earnings Release • Feb 12, 2021
Earnings Release
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Fourth quarter 2020
1) Last year's figures in brackets.
Following the board of directors' decision to demerge the property development operation, this operation is presented as held for sale in the financial accounts. The other operations are presented as continued operations.
The charts reflect figures from the segment accounts for continued operations.
LTI RATE)
1) Lost-time injuries per million hours worked, own employees, 12 m. rolling
| Figures in NOK million | Q4 2020 | Q4 2019 | 2020 | 2019 |
|---|---|---|---|---|
| Continued operations | ||||
| Revenue | 10 274 | 10 039 | 38 140 | 36 569 |
| Pre-tax profit | 391 | -83 | 1 134 | 596 |
| Veidekke Construction in Noreay | 155 | 34 | 532 | 387 |
| Veidekke Infrastructure in Norway | 82 | 12 | 244 | 168 |
| Veidekke in Sweden | 98 | -165 | 303 | -25 |
| Veidekke in Denmark/Hoffmann | 78 | 70 | 200 | 169 |
| Other | -22 | -34 | -145 | -104 |
| Profit margin | 3.8% | -0.8% | 3.0% | 1.6% |
| Profit per share (NOK) | 2.0 | -0.8 | 5.8 | 3.0 |
| Revenue, IFRS | 10 274 | 10 039 | 38 140 | 36 569 |
| EBITDA, IFRS | 557 | 168 | 2 079 | 1 468 |
| Pre-tax profit, IFRS | 392 | -69 | 1 202 | 582 |
| Total order book | 37 460 | 36 704 | 37 460 | 36 704 |
| LTI rate | 4.4 | 4.0 | 4.4 | 4.0 |
| Sickness absence | 5.5% | 4.1% | 5.1% | 4.0% |
| Group overall2) | ||||
| Pre-tax profit | 389 | 16 | 2 043 | 941 |
| Profit per share IFRS (NOK) | 2.0 | 0.6 | 15.6 | 6.8 |
| Net interest bearing position | 3 078 | -2 653 | 3 078 | -2 653 |
| Cash-flow from operations | 864 | 2 157 | 2 350 | 1 503 |
| Return on equity | 53% | 25% | 53% | 25% |
1) The comments in the report relate to figures taken from the segment accounts for all operations (continued operations and operations held for sale). Comments on the IFRS accounts are specified in the text.
2) Group overall comprises continued operations and operations held for sale.
2020 was an unusual year for most people, including all of us at Veidekke. Over the course of the year, we sold the property development operation and restructured key parts of the Norwegian business against the backdrop of a global pandemic which has impacted everyday life in differing degrees. I am therefore particularly pleased that we are managing to deliver on our promises.
Veidekke ended the year with a strong quarterly result, increased profitability and growth in all operational areas. Following the demerger of the property development operation, Veidekke is now streamlined construction contractor. Midway through 2020, we communicated a number of clear priorities: to maintain efforts to improve profitability; to prioritise selective growth; and to offer an attractive dividend. These priorities continue to guide our work. Stable revenues and a strong order intake give us confidence for the months ahead, even though the pandemic is making it difficult to predict longer term market developments. Based on the company's strong performance in 2020, the board of directors is proposing that the general meeting approve a dividend of NOK 5.75 per share for the financial year 2020.
We are continuing our development of products, services and working methods that make us more sustainable. In the late autumn, we laid our first kilometre of environmental asphalt featuring drastically reduced greenhouse gas emissions. This product, which has been developed at our laboratory in Trondheim, has attracted strong market interest. We are also proud to have been awarded CDP Climate Change's top 'A' grade for climate reporting and climate risk assessment for the third year in a row, despite increasingly strict assessment criteria.
Currently, work on Veidekke's construction and civil engineering sites and in the road maintenance operation is being performed under strict infection control measures, and most of our administrative staff are working from home. Ever since the first wave of infections reached Scandinavia, our focus has been on maintaining momentum and planned project progress, and on ensuring timely deliveries to projects to avoid delays.
Jimmy Bengtsson, Group CEO
At the end of an extraordinary year, what we most long for is a return to the ordinary. The past year illustrates that, even though we cannot always control our circumstances, we do control our response to them. Time and again my colleagues have demonstrated their ability to find good solutions to enable Veidekke to deliver on its promises to customers and shareholders. My sincere thanks therefore go to all of our wonderful staff across Scandinavia who have kept up the pace, their good humour and high quality throughout many months of changing conditions and a steady stream of new challenges.
Veidekke achieved revenues of NOK 10.3 billion in Q4, and a pre-tax profit of NOK 391 million. Measured in local currency, revenues were on a par with the fourth quarter of last year, while profits were up from NOK -83 million. The Q4 2019 result included loss allocations and restructuring costs totalling NOK 330 million. Adjusted for this, profits improved in all operational areas.
The Covid-19 pandemic had a limited impact on Veidekke's production in the fourth quarter, although stricter infection control measures and travel restrictions may make progress challenging in some production segments going forward.
The group's Q4 order intake was strong at NOK 9.8 billion, compared to NOK 9.9 billion in Q4 2019. The effect of the pandemic on the future order intake is uncertain, and activity levels have declined somewhat in the commercial buildings segment in recent quarters. Nevertheless, the group's order book improved slightly year-on-year, from NOK 36.7 billion in 2019 to NOK 37.5 billion at year-end 2020. Two-thirds of the order book will be converted into revenue in the next 12 months.
Net interest-bearing assets totalled NOK 3.1 billion at quarter-end, compared to NOK -2.7 billion at the beginning of the year. Cash flow from operational activities amounted to NOK 864 million in Q4, and NOK 2.4 billion in 2020 as a whole. Investments in operating assets (less leases pursuant to IFRS 16) amounted to NOK 595 million in 2020. Net interest-bearing assets increased by NOK 5.7 billion in 2020, primarily as a result of the sale of the property development operation. A dividend totalling approximately NOK 3.1 billion was distributed in the fourth quarter.
Revenues from continued operations totalled NOK 38.1 billion in 2020, compared to NOK 36.6 billion in 2019. Measured in local currency, however, revenues were on a par with last year. The continued operations achieved a pretax profit of NOK 1,134 million in 2020, compared to NOK 596 million the year before. The profit margin increased to 3.0% in 2020, from 2.5% in 2019 (adjusted for loss allocations and restructuring costs incurred in 2019).
The profit per share of the continued operations was NOK 5.80 in 2020. In December, Veidekke paid a dividend of NOK 22.50 per share, including NOK 20 per share stemming from the sale of the property development operation and a NOK 2.50 dividend in respect of the 2019 financial year. Based on Veidekke's robust financial position and strong order book, the board has proposed an ordinary dividend of NOK 5.75 per share for the financial year 2020. The dividend equates to a distribution ratio of 100% for continuing operations.
1) The comments in the report relate to figures taken from the segment accounts unless otherwise is spesified in the text.
| NOK million | Q4 2020 | Q4 2019 2020 |
2019 | ||
|---|---|---|---|---|---|
| Revenue | 4 076 | 4 178 | 14 638 | 14 464 | |
| Pre-tax profit | 155 | 34 | 532 | 387 | |
| Profit margin | 3.8% | 0.8% | 3.6% | 2.7% | |
| Order book | 13 358 | 14 762 | 13 358 | 14 762 |
| Residential buildings | 35% |
|---|---|
| Commercial buildings | 27% |
| Public buildings | 38% |
The Norwegian construction operation generated revenues of NOK 4.1 billion in the fourth quarter of 2020, on a par with the same quarter in 2019. Revenue development varied in the major metropolitan areas, with growth in Bergen, a stable trend in Oslo and Stavanger, and a decline in Trondheim.
The Q4 pre-tax profit totalled NOK 155 million, compared to NOK 34 million in Q4 2019. Last year's figure included NOK 70 million in restructuring costs. Profits remained high and stable in Oslo, while the operations in Norway's other major cities improved profits and profitability from last year. Overall, the Q4 profit margin was 3.8%, up from 2.5% in the same quarter last year (adjusted for restructuring costs).
In 2020 as a whole, the Norwegian construction operation generated revenues of NOK 14.6 billion, on a par with 2019. The pre-tax profit amounted to NOK 532 million, up from NOK 387 million last year. Several entities improved their profitability in 2020, and the profit margin rose to 3.6%, from 2.7% in 2019.
The quarterly order intake amounted to NOK 3.4 billion. Major contracts signed during the quarter:
At quarter-end, the order book totalled NOK 13.4 billion, down 10% from NOK 14.8 billion at the beginning of the year. Demand for both residential units and commercial buildings has fallen, while demand for public buildings has increased.
Construction Norway specialises in the construction of residential units, office buildings, schools and healthcare buildings, primarily in and around Norway's major cities. The operation is investing in sustainable construction and the transition to fossilfree construction sites, standardised processes and materials which meet a high environmental standard and have a long operating life. Projects are developed in close cooperation with clients. The operation gives high priority to training its own skilled manual workers, and has many apprentices working around the country.
| NOK million | Q4 2020 | Q4 2019 2020 |
2019 | |
|---|---|---|---|---|
| Revenue | 2 049 | 2 115 | 8 847 | 9 209 |
| Civil engineering | 1 346 | 1 348 | 5 933 | 5 530 |
| Asphalt, Aggregates | 703 | 767 | 2 914 | 3 679 |
| Pre-tax profit | 82 | 12 | 244 | 168 |
| Civil engineering | 48 | -2 | 161 | -5 |
| Asphalt, Aggregates | 34 | 14 | 83 | 173 |
| Profit margin | 4.0% | 0.6% | 2.8% | 1.8% |
| Civil engineering | 3.6% | -0.1% | 2.7% | -0.1% |
| Asphalt, Aggregates | 4.9% | 1.8% | 2.8% | 4.7% |
| Order book | 7 206 | 8 454 | 7 206 | 8 454 |
REVENUE AND PROFIT MARGIN
NOK BILLION AND PER CENT
CONTRACTS1) NOK BILLION
1) Civil engineering projects and maintainance contracts
ORDER BOOK BY MARKET SEGMENT PER CENT
| Infrastructure | 47% |
|---|---|
| Industry and energy | 11% |
| Other civil engineering | 1% |
| Maintainance contracts | 41% |
Veidekke Infrastructure Norway achieved revenues of NOK 2.0 billion in the fourth quarter, compared to NOK 2.1 billion in the same quarter last year. The pre-tax profit totalled NOK 82 million, up from NOK 12 million in Q4 2019. The Q4 2019 result included NOK 30 million in restructuring costs.
The civil engineering operation generated revenues of NOK 1.3 billion in Q4, on par with the corresponding quarter of last year. The profit increased to NOK 48 million, from NOK -2 million in Q4 2019 (including NOK 30 million in restructuring costs). Although the civil engineering portfolio still includes loss-making projects, profits have been bolstered by final payments in several projects, positive outcomes in various disputes and a strong contribution by ongoing road maintenance contracts. Overall, this helped improve the profit margin from -0.1% to 3.6%. For the year as a whole, the revenues of the civil engineering operation totalled NOK 5.9 billion, up 7% on 2019, while the pre-tax profit increased to NOK 161 million, from NOK -5 million last year. The profit margin was 2.7% in 2020, up from -0.1% in 2019. At year-end, the operation was involved in a major ongoing legal dispute with a highly uncertain financial outcome.
The asphalt and aggregates operations achieved revenues of NOK 703 million in the fourth quarter, down 8% from NOK 767 million last year. This revenue decline is attributable to a reduction of more than 15% in Veidekke's asphalt volumes compared to Q4 2019.
The quarterly profit was NOK 34 million, compared to NOK 14 million in the fourth quarter of 2019. The operation has managed to compensate for reduced asphalt volumes through effective pricing, and raw material prices have also developed favourably. Revenues totalled NOK 2.9 billion in 2020, down 21% on 2019. The pre-tax profit was NOK
83 million, compared to NOK 173 million last year. The drop in profits is due to a decline in asphalt tonnages. The profit margin for the year was 2.8%, down from 4.7% the previous year.
Veidekke Infrastructure Norway generated revenues of NOK 8.8 billion in 2020, down 4% on 2019. While the civil engineering operation achieved growth, revenues fell in the asphalt and aggregates operation due to a 25% drop in asphalt tonnages. Profits increased to NOK 244 million, from NOK 168 million in 2019. The profit improvement is attributable to improved profitability in the civil engineering portfolio. The profit margin for the year was 2.8%, up from 1.8% in 2019.
The fourth-quarter order intake amounted to NOK 991 million, compared to NOK 4.4 billion in the same quarter of 2019 (although this included two major transport infrastructure projects).The order intake includes civil engineering orders and road maintenance contracts. Major contracts signed during the quarter:
At quarter-end, the order book totalled NOK 7.2 billion, compared to NOK 8.5 billion at the beginning of the year. Maintenance contracts amounted to NOK 3.1 billion, up from NOK 2.4 billion at the beginning of the year.
Infrastructure Norway is a national civil engineering contractor with specialist expertise in the construction of roads, railways, power plants and industrial facilities. The operation is Norway's largest asphalt producer and contractor, the country's secondlargest aggregates producer and an important player in the public roads maintenance market. The operation is an important contributor to CO2 emissions reductions through its facilitation of fossil-free construction sites, use of electrically powered machinery and use of environmentally friendly energy carriers in asphalt production.
| NOK million | Q4 2020 | Q4 2019 | 2020 | 2019 |
|---|---|---|---|---|
| Revenue | 3 525 | 3 215 | 12 293 | 10 803 |
| Pre-tax profit | 98 | -165 | 303 | -25 |
| Profit mMargin | 2.8% | -5.1% | 2.5% | -0.2% |
| Order book | 14 380 | 11 504 | 14 380 | 11 504 |
REVENUE AND PROFIT MARGIN NOK BILLION AND PER CENT
CONTRACTS NOK BILLION
| Residential buildings | 25% |
|---|---|
| Commercial buildings | 25% |
| Public buildings | 28% |
| Transport | 8% |
| Industry and energy | 5% |
| Other civil engineering | 10% |
The Swedish operation recorded revenues of NOK 3.5 billion in the fourth quarter, compared to NOK 3.2 billion in the same quarter of last year. Measured in local currency, the revenue increase totalled 4%. The fourth-quarter profit was NOK 98 million, compared to NOK -165 million last year. The Q4 2019 result included NOK 230 million in loss allocations and restructuring costs. The overall quarterly profit margin was 2.8%, compared to -5.1% in Q4 2019.
The Swedish construction operation achieved revenues of NOK 2.2 billion in Q4, compared to NOK 1.9 billion last year. A revenue increase in Gothenburg and Malmö secured a satisfactory profit, while reduced activity in Stockholm impacted profits there. The profit margin for the quarter was 2.1%, up from 1.2% in 2019 (adjusted for restructuring allocations totalling NOK 30 million). For 2020 as whole, revenue amounted to NOK 7.9 billion, and the profit margin was 2.2%.
The Swedish infrastructure operation generated revenues of NOK 1.3 billion in the fourth quarter, on a par with 2019. The profit margin increased to 3.9%, from 2.5% one year ago (adjusted for loss allocations totalling NOK 200 million). For 2020 as whole, revenue amounted to NOK 4.4 billion, and the profit margin was 3.0%.
Revenues totalled NOK 12.3 billion in 2020, representing a 5% increase on 2019 measured in local currency. The pretax profit was NOK 303 million, up from NOK -25 million in 2019. The increase is due to improved profitability of the
infrastructure operation and the construction operation in Stockholm.
The fourth-quarter order intake totalled NOK 4.6 billion. Major contracts signed during the quarter:
At the end of the fourth quarter, the order book stood at NOK 14.4 billion, compared to NOK 11.5 billion at yearend 2019. Measured in local currency, the order book has grown by 12%. The order book composition has changed in 2020, with demand for public buildings almost doubling, a 20% increase in orders for residential units and a 27% drop in demand for commercial buildings.
Veidekke Sweden is a wholly-owned subsidiary with a broad portfolio of construction projects, including residential units, offices, schools and cultural buildings. The company's civil engineering portfolio encompasses projects focused on transport infrastructure, other infrastructure and energy, including wind farms. Veidekke Sweden also has an asphalt operation.
| NOK million | Q4 2020 | Q4 2019 | 2020 | 2019 |
|---|---|---|---|---|
| Revenue | 686 | 626 | 2 652 | 2 358 |
| Pre-tax profit | 78 | 70 | 200 | 169 |
| Profit margin | 11.4% | 11.2% | 7.5% | 7.2% |
| Order book | 2 516 | 1 983 | 2 516 | 1 983 |
| Residential buildings | 5% |
|---|---|
| Commercial buildings | 61% |
| Public buildings | 28% |
| Transport | 6% |
The Danish operation achieved revenues of NOK 686 million in the fourth quarter, compared to NOK 626 million in the corresponding quarter last year. Measured in local currency, revenues increased by 3%. The fourth-quarter pre-tax profit was NOK 78 million, compared to NOK 70 million in Q4 2019. The project portfolio remains robustly profitable, with a profit margin of 11.4% – on a par with the fourth quarter of last year. Profits were improved by a strong profit contribution from ongoing projects and projects approaching completion.
In 2020 as a whole, revenues totalled NOK 2.7 billion, compared to NOK 2.4 billion the previous year. Profits amounted to NOK 200 million, up from NOK 169 million in 2019. The operation was robustly profitable, with a profit margin of 7.5% – on a par with 2019.
The quarterly order intake totalled NOK 753 million and included a major contract valued at NOK 313 million relating to the construction of a hospital pharmacy and laundry facility at Aarhus University Hospital for Region Midtjylland.
At the end of the year, the order book stood at NOK 2.5 billion, compared to NOK 2.0 billion at year-end 2019. Measured in local currency, the order book total increased by approximately 20%. The commercial buildings order book has shrunk by 14% since Q4 2019, while the share of public buildings has increased. Future private-sector demand is uncertain.
Hoffmann A/S is Veidekke's wholly-owned Danish subsidiary. The majority of the company's projects relate to commercial buildings. Hoffmann gives particular emphasis to close customer dialogue throughout all project stages, from planning and design to execution.
Veidekke gives high priority to its sustainable development responsibilities, and considers sustainable operation and sustainable solutions as critical for the company's success in the transition to a low-emissions society.
Sustainable development is about taking responsibility for ensuring that future generations enjoy the same opportunities as we have today. For Veidekke, this responsibility arises in relation the full range of ESG issues – environmental, social and governance – as follows:
Veidekke is working systematically to integrate sustainability into its own operations throughout the supply chain. Responsibility for these efforts rests with group management.
Veidekke has adopted long-term goals for its ESG work:
In 2020, Veidekke hired a director with responsibility for sustainability cooperation with line management in the operational areas, as well as inter-disciplinary coordination with the group's technical specialists in areas such as compliance, HSE, HR, environment, purchasing, finance and uncertainty management.
• Held digital recruitment events for university and university college students, and won a gold Magnet Award for the best student recruitment campaign.
This is a zero-emissions laboratory which researches new materials and solutions. Photo: Veidekke
The fourth-quarter LTI (lost time injury) rate was 4.4, the same as in the preceding quarter but up from 4.0 in Q4 2019. The sick leave rate was 5.5%, markedly up on the preceding quarter (3.9%) and the fourth quarter of last year (4.1%). The increase is due to short-term absence among skilled manual workers due to infection control rules, as these workers cannot work from home.
One serious incident was reported in the fourth quarter. Since Veidekke adopted its "zero serious injuries" target six years ago, the number of injuries has been reduced materially. To ensure achievement of this target, Veidekke launched its "Zero serious injuries within 700 days" improvement project in February 2019. The project features three programme areas and various sub-projects:
This programme targets the improvement of processes and tools for ensuring that the entire organisation learns from undesirable incidents. The programme will be fully rolled out by the end of 2020. The following measures are currently being implemented:
This programme is designed to ensure that all activity plans seek to minimise risks, by means of improved processes, new tools and clearer requirements:
Human error causes dangerous situations and is an important contributory factor in very many accidents. Veidekke's objective with this programme is to develop a safety culture in which all staff take responsibility for colleagues, are committed to ensuring the safety of others and thus help one another to make good decisions.
The Veidekke OHS contract has been approved, and is due to be implemented by the end of 2021.
ELIMINATING RISKS BEFORE WORK BEGINS
Number of injuries, own employees and subcontractors.
| Estimated growth* | |||||
|---|---|---|---|---|---|
| NOK billion | 2019 | 2019 | 2020 | 2021 | 2022 |
| Apartments and small houses |
63 | -6% | -7% | -18% | -1% |
| Commercial buildings | 46 | 4% | -3% | -10% | 1% |
| Public buildings | 30 | 10% | 17% | 17% | 2% |
| Civil engineering | 90 | 6% | 1% | 1% | 4% |
| Total contracting production | 229 | 2% | 0% | -4% | 2% |
| Estimated growth* | |||||
|---|---|---|---|---|---|
| NOK billion | 2019 | 2019 | 2020 | 2021 | 2022 |
| Apartments and small houses |
55 | 10% | 2% | -15% | -14% |
| Commercial buildings | 44 | 0% | -9% | 5% | 3% |
| Public buildings | 13 | -19% | -18% | 0% | -6% |
| Civil engineering | 79 | 3% | 0% | 1% | 2% |
| Total contracting production | 191 | 2% | -3% | -3% | -3% |
Sources: SSB, SCB, DST and Veidekke's forecasts.
* The figures for 2019 and 2020 are estimates, while those for 2021 and 2022 are forecasts.
Veidekke calculates market data for the Scandinavian contracting market based on data on reported civil engineering production and new-build starts provided by the national statistics agencies in Norway (Statistics Norway), Sweden (Statistics Sweden) and Denmark (Statistics Denmark). Production forecasts for the contracting market reflect activity in projects initiated as at Q2 2020, demand and new project starts during the forecast period. Distinctive industry characteristics, such as long construction periods, mean that it normally takes one to two years for cyclical economic developments with a visible impact on demand – for example for residential units – to affect production in the contracting sector.
Other operations consist of unallocated costs associated with the group's corporate administration and financial management, the group's ownership role in Public–Private Partnerships (PPP) and the elimination of intra-group profits. The result for the fourth quarter was a loss of NOK 22 million.
Net interest-bearing assets amounted to NOK 3.1 billion at quarter-end, compared to NOK -2.7 billion at the beginning of the year. In the fourth quarter, Veidekke distributed a dividend of NOK 22.50 per share, corresponding to NOK 3.1 billion. Cash flow from operational activities totalled NOK 864 million in the fourth quarter, and NOK 2.4 billion for 2020 as a whole. Investments in operating assets (less leases pursuant to IFRS 16) amounted to NOK 595 million in 2020. The statement of financial position totalled NOK 17.6 billion at quarter-end, compared to NOK 22.0 billion at the end of Q4 2019.
As part of adjusting the group's capital structure and financing arrangements following the sale of the property development operation in the autumn, Veidekke refinanced its existing borrowing facilities with DNB and SEB in December 2020. The previous overdraft facility with Veidekke's main bank, DNB, was restructured into a rolling NOK 1,750 million, 364-day facility. Veidekke also renegotiated its NOK 750 million credit facility with SEB, which now features a three-year maturity and two one-year extension options. The credit facility includes sustainability targets. As at the end of Q4, Veidekke had not drawn on any of its available credit totalling NOK 2.5 billion.
| Largest shareholders at 31 December 2020 | Ownership share % |
|---|---|
| OBOS BBL | 18.6% |
| FOLKETRYGDFONDET | 11.6% |
| IF SKADEFORSÄKRING AB | 3.7% |
| LANDSFORSÄKRINGAR FASTIGHETSFOND | 3.1% |
| MUST INVEST AS | 2.2% |
| MP PENSJON | 2.0% |
| ODIN NORGE | 2.0% |
| DANSKE INVEST | 1.9% |
| STATE STREET BANK AND TRUST COMP | 1.6% |
| STATE STREET BANK AND TRUST COMP | 1.4% |
| 10 largest shareholders, total ownership | 48.1% |
| Employees (3 838), total ownership | 11% |
| Others | 40.9% |
| Total | 100% |
A total of 7.0 million Veidekke shares were traded in the fourth quarter of 2020. The share price ranged from NOK 104.40 to NOK 133.20, and was NOK 110.80 at 31 December. The foreign shareholding was 37.8%
Veidekke has ongoing transactions with related parties during the course of its ordinary operations, including contracts for the development of specific projects. There were no significant related party transactions in the fourth quarter of 2020 beyond this. For a more detailed description of related party transactions, see Veidekke's 2019 Annual Report.
The risk profile is currently dominated by strong uncertainty linked to the Covid-19 pandemic. Thus far, the pandemic has had a limited impact on Veidekke's production and earnings, and the total order intake for 2020 was satisfactory. However, extraordinary infection control measures – including travel restrictions – may affect production capacity and deliveries of goods and components.
Veidekke's business primarily involves the execution of individual projects. The 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, tender quality, project follow-up and project 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 project portfolio is increasing in size and complexity, making risk management a high prio rity for the group. 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 infrastrcture 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 two major disputes currently before the courts.
The order book totalled NOK 37.5 billion at year-end, providing a robust basis for future activity. However, due to the ongoing Covid-19 pandemic, there is uncertainty about the future order intake, and private-sector demand in particular.
For further discussion of the company's financial risk, climate risk and other risk factors, see Note 29 to Veidekke's 2019 annual report
| Gro Bakstad | Ingalill Berglund | Ingolv Høyland | Daniel Kjørberg Siraj | |
|---|---|---|---|---|
| Hanne Rønneberg | Per-Ingemar Persson | Inge Ramsdal | Odd Andre Olsen | Arve Fludal |
Jimmy Bengtsson Group CEO
| Figures in NOK million | Q4 2020 | Q4 2019 restated |
At 31.12.2020 | At 31.12.2019 restated |
|---|---|---|---|---|
| Revenue | 10 274 | 10 039 | 38 140 | 36 569 |
| Operating expenses | -9 660 | -9 774 | -36 022 | -35 034 |
| Share of net income from joint ventures | -15 | -97 | 4 | -67 |
| Operating profit before depreciation (EBITDA) | 600 | 168 | 2 122 | 1 468 |
| Depreciation/impairment | -226 | -231 | -910 | -887 |
| Operating profit (EBIT) | 374 | -63 | 1 213 | 581 |
| Financial income | 18 | 9 | 80 | 56 |
| Financial costs | -1 | -15 | -91 | -54 |
| Pre-tax profit, continued operations | 392 | -69 | 1 202 | 582 |
| Tax expenses | -97 | -15 | -279 | -142 |
| Post-tax profit, continued operations | 295 | -85 | 922 | 440 |
| of which non-controlling interests | 19 | 14 | 81 | 48 |
| Post-tax profit, operations held for sale | -4 | 176 | 1 266 | 522 |
| of which non-controlling interests | - | - | - | - |
| Post-tax profit for the period | 290 | 91 | 2 189 | 962 |
| Profit per share (NOK), continued operations | 2.0 | -0.7 | 6.2 | 2.9 |
| Profit per share (NOK), operations held for sale | 0.0 | 1.3 | 9.4 | 3.9 |
| Profit per share (NOK), continued operations and operations held for sale |
2.0 | 0.6 | 15.6 | 6.8 |
1) The post-tax profit/loss in respect of operations held for sale is presented on a separate line in the income statement, while continued operations are presented exclusive of operations held for sale. Operating income and pre-tax profit/loss items relate solely to continued operations. See Note 2 Accounting principles for further details.
| Figures in NOK million | Q4 2020 | Q4 2019 restated |
At 31.12.2020 | At 31.12.2019 restated |
|---|---|---|---|---|
| Post-tax profit for the period | 290 | 91 | 2 189 | 962 |
| Revaluation of pensions | -37 | 14 | -37 | 14 |
| Net items that will not be reclassified subsequently to profit or loss |
-37 | 14 | -37 | 14 |
| Currency translation differences | -71 | 27 | 40 | -36 |
| Fair value adjustment of financial assets | 32 | 33 | -47 | 11 |
| Net items that may be reclassified subsequently to profit or loss |
-39 | 60 | -7 | -25 |
| Total comprehensive income | 214 | 165 | 2 144 | 951 |
| of which non-controlling interests | 19 | 15 | 84 | 48 |
| Figures in NOK million | 31.12.2020 | 31.12.2019 | 01.01.2019 restated2) |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 1 824 | 1 790 | 1 807 |
| Other intangible assets | 130 | 94 | 149 |
| Land and buildings | 1 318 | 1 253 | 1 393 |
| Plant and machinery | 2 411 | 2 644 | 2 892 |
| Investments in joint ventures | 197 | 219 | 1 286 |
| Financial assets | 571 | 535 | 508 |
| Total non-current assets | 6 452 | 6 535 | 8 036 |
| Current assets | |||
| Residential projects | 32 | 53 | 7 430 |
| Inventories | 580 | 544 | 564 |
| Trade and other receivables, contract assets | 6 718 | 5 683 | 6 343 |
| Financial investments | 540 | - | - |
| Cash and cash equivalents | 3 219 | 241 | 341 |
| Total current assets | 11 089 | 6 522 | 14 678 |
| Total assets held for sale | - | 8 920 | - |
| Total assets | 17 541 | 21 977 | 22 714 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 67 | 67 | 67 |
| Other equity | 2 785 | 3 740 | 3 411 |
| Non-controlling interests | 25 | 142 | 779 |
| Total equity | 2 877 | 3 949 | 4 257 |
| Non-current liabilities | |||
| Pensions and deferred tax liabilities | 1 136 | 908 | 849 |
| Bonds | 600 | 1 600 | 1 600 |
| Amounts due to credit institutions | 198 | 1 507 | 248 |
| Other non-current liabilities | 1 097 | 1 161 | 1 099 |
| Total non-current liabilities | 3 031 | 5 177 | 3 795 |
| Current liabilities | |||
| Debt to credit institutions | 29 | 12 | 2 505 |
| Trade payables and warranty provisions | 7 113 | 6 957 | 6 989 |
| Public duties and taxes payable | 1 102 | 751 | 867 |
| Other current liabilities and contract liabilities | 3 389 | 2 800 | 4 301 |
| Total current liabilities | 11 633 | 10 520 | 14 662 |
| Total liabilities related to assets held for sale | - | 2 331 | - |
| Total equity and liabilities | 17 541 | 21 977 | 22 714 |
1) In the balance sheet as at 31 December 2019, all items relating to the property development operation are presented as assets and liabilities held for sale. 2) New principles on the consolidation of housing cooperatives in Sweden have been implemented. Figures have been restated from 01.01.19. The figures also include IFRS 16 Leases. Reference is made to Note 35 in the 2019 annual report.
| Figures in NOK million | Q4 2020 | Q4 2019 restated |
At 31.12.2020 | At 31.12.2019 restated |
|---|---|---|---|---|
| Pre-tax profit, continued operations | 392 | -69 | 1 202 | 582 |
| Tax paid | 4 | -8 | -81 | -79 |
| Depreciation/impairment | 226 | 231 | 909 | 887 |
| Other operational items | 242 | 2 004 | 319 | 112 |
| Cash flow from operating activities | 864 | 2 157 | 2 350 | 1 503 |
| Acquisition/disposal of property, plant and equipment | -271 | -150 | -682 | -493 |
| Other investing activities | -13 | -69 | -119 | -94 |
| Short-term bond fund investment | -540 | - | -540 | - |
| Change in interest-bearing receivables | 12 | -20 | 50 | 21 |
| Cash flow from investing activities | -812 | -239 | -1 291 | -567 |
| Change in interest-bearing liabilities | 38 | -2 051 | -2 321 | 1 286 |
| Dividend paid | -3 037 | - | -3 037 | -669 |
| Capital increase | - | 115 | - | 115 |
| Change in liabilities, operations held for sale | - | 20 | 4 158 | -1 899 |
| Other financial items | -10 | 91 | -67 | 318 |
| Cash flow from financing activities | -3 008 | -1 825 | -1 266 | -848 |
| Total cash flow from continued operations | -2 956 | 93 | -208 | 88 |
| Cash flow from operations held for sale | 34 | -10 | 3 103 | -107 |
| Change in cash and cash equivalents | -2 922 | 83 | 2 895 | -20 |
| Cash and cash equivalents, start of period | 6 142 | 229 | 318 | 341 |
| Exchange rate adjustment foreign cash balances | - | 4 | 7 | -6 |
| Cash and cash equivalents, end of period | 3 219 | 318 | 3 219 | 318 |
| Cash and cash equivalents, continued operations | 3 219 | 241 | 3 219 | 241 |
| Cash and cash equivalents, operations held for sale | - | 77 | - | 77 |
| Total cash and cash equivalents | 3 219 | 318 | 3 219 | 318 |
| Figures in NOK million | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Cash and cash equivalents | 3 219 | 283 |
| Interest-bearing assets (short-term) | 540 | - |
| Interest-bearing assets (long-term) | 145 | 195 |
| Interest-bearing liabilities | -827 | -3 131 |
| Net interest-bearing position | 3 078 | -2 653 |
| Cash in housing cooperatives in Sweden | - | 35 |
| Interest bearing debt, housing cooperatives in Sweden | - | -678 |
| Net interest-bearing position including housing cooperatives in Sweden |
3 078 | -3 296 |
| Figures in NOK million | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Order backlog (NOK million) | 37 460 | 36 704 |
| Equity ratio | 16% | 18% |
| Return on equity | 53% | 25% |
| Number of employees (Total operations) | 8 082 | 8 557 |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| CONSTRUCTION IN NORWAY | ||||
| Revenue | 4 076 | 4 178 | 14 638 | 14 464 |
| Operating expenses | -3 882 | -4 111 | -13 976 | -13 973 |
| Share of net income from joint ventures | - | - | - | - |
| Depreciation/impairment | -45 | -42 | -168 | -150 |
| Operating profit (EBIT) | 149 | 25 | 494 | 341 |
| Net financial items | 6 | 9 | 38 | 46 |
| Pre-tax profit (EBT) | 155 | 34 | 532 | 387 |
| Total assets, segment | 6 924 | 6 600 | 6 924 | 6 600 |
| INFRASTRUCTURE IN NORWAY | ||||
| Revenue | 2 049 | 2 115 | 8 847 | 9 209 |
| Operating expenses | -1 848 | -1 972 | -8 103 | -8 502 |
| Share of net income from joint ventures | 4 | 6 | 5 | 17 |
| Depreciation/impairment | -113 | -119 | -457 | -483 |
| Operating profit (EBIT) | 93 | 29 | 292 | 241 |
| Net financial items | -10 | -17 | -48 | -73 |
| Pre-tax profit (EBT) | 82 | 12 | 244 | 168 |
| Total assets, segment | 5 066 | 5 177 | 5 066 | 5 177 |
| SWEDEN | ||||
| Revenue | 3 525 | 3 215 | 12 293 | 10 803 |
| Operating expenses | -3 356 | -3 222 | -11 779 | -10 558 |
| Share of net income from joint ventures | -26 | -110 | -24 | -108 |
| Depreciation/impairment | -51 | -47 | -198 | -166 |
| Operating profit (EBIT) | 92 | -164 | 292 | -29 |
| Net financial items | 6 | -1 | 12 | 4 |
| Pre-tax profit (EBT) | 98 | -165 | 303 | -25 |
| Total assets, segment | 4 523 | 3 679 | 4 523 | 3 679 |
| DENMARK | ||||
| Revenue | 686 | 626 | 2 652 | 2 358 |
| Operating expenses | -604 | -548 | -2 429 | -2 160 |
| Share of net income from joint ventures | - | - | - | - |
| Depreciation/impairment | -6 | -8 | -29 | -31 |
| Operating profit (EBIT) | 76 | 69 | 194 | 167 |
| Net financial items | 2 | 1 | 6 | 2 |
| Pre-tax profit (EBT) | 78 | 70 | 200 | 169 |
| Total assets, segment | 1 828 | 1 391 | 1 828 | 1 391 |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| OTHER OPERATIONS1) | ||||
| Revenue | -1 | -- | 49 | 7 |
| Operating expenses | -32 | -24 | -142 | -94 |
| Share of net income from joint ventures | 7 | 8 | 23 | 24 |
| Depreciation/impairment | -11 | -15 | -56 | -57 |
| Operating profit (EBIT) | -37 | -31 | -127 | -120 |
| Net financial items | 13 | 2 | -19 | 22 |
| Pre-tax profit (EBT) | -24 | -29 | -146 | -98 |
| GROUP ELIMINATIONS CONTINUED OPERATIONS |
||||
| Revenue | -60 | -95 | -339 | -271 |
| Operating expenses | 61 | 90 | 339 | 266 |
| Share of net income from joint ventures | - | - | - | - |
| Depreciation/impairment | - | - | - | - |
| Operating profit (EBIT) | 2 | -5 | 1 | -5 |
| Net financial items | - | - | - | |
| Pre-tax profit (EBT) | 2 | -5 | 1 | -5 |
| TOTAL VEIDEKKE GROUP CONTINUED OPERATIOS |
||||
| Revenue | 10 274 | 10 039 | 38 140 | 36 569 |
| Operating expenses | -9 660 | -9 788 | -36 090 | -35 021 |
| Share of net income from joint ventures | -15 | -97 | 4 | -67 |
| Depreciation/impairment | -226 | -231 | -910 | -887 |
| Operating profit (EBIT) | 374 | -77 | 1 145 | 594 |
| Net financial items | 18 | -6 | -11 | 2 |
| Pre-tax profit (EBT) | 391 | -83 | 1 134 | 596 |
| Total assets, segment | 17 541 | 21 608 | 17 541 | 21 608 |
1) Other operations include the group's central unassigned costs and net financial items, plus Veidekke's involvement in public-private partnerships (PPP).
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| PROPERTY DEVELOPMENT (UNTIL AUGUST 2020) |
||||
| Revenue | - | 1 000 | 1 893 | 3 053 |
| Operating expenses | - | -925 | -1 748 | -2 850 |
| Share of net income from joint ventures | - | 34 | 179 | 175 |
| Depreciation/impairment | - | -4 | -4 | -6 |
| Operating profit (EBIT) | - | 105 | 320 | 372 |
| Net financial items | - | -4 | -2 | -16 |
| Pre-tax profit (EBT) | - | 101 | 318 | 356 |
| ELIMINATIONS BETWEEN PROPERTY DEVELOPMENT AND CONTINUED OPERATIONS, GAIN FROM SALE OF PROPERTY DEVELOPMENT OPERATIONS |
||||
| Revenue | - | -247 | -721 | -844 |
| Operating expenses | - | 244 | 721 | 843 |
| Share of net income from joint ventures | - | - | - | - |
| Depreciation/impairment | - | - | - | - |
| Gain from sale of property development operations | -3 | - | 591 | - |
| Operating profit (EBIT) | -3 | -4 | 591 | -1 |
| Net financial items | - | 1 | - | -10 |
| Pre-tax profit (EBT) | -3 | -3 | 591 | -11 |
| TOTAL VEIDEKKE GROUP SEGMENT ACCOUNTS (CONTINUED OPERATIONS AND OPERATIONS HELD FOR SALE) |
||||
| Revenue | 10 274 | 10 792 | 39 313 | 38 779 |
| Operating expenses | -9 660 | -10 469 | -37 117 | -37 028 |
| Share of net income from joint ventures | -15 | -63 | 183 | 108 |
| Depreciation/impairment | -226 | -235 | -914 | -893 |
| Gain from sale of property development operations | -3 | - | 591 | - |
| Operating profit (EBIT) | 371 | 25 | 2 056 | 965 |
| Net financial items | 18 | -9 | -13 | -24 |
| Pre-tax profit (EBT) | 389 | 16 | 2 043 | 941 |
| Tax expenses | -100 | -16 | -290 | -155 |
| Post-tax profit | 289 | - | 1 753 | 786 |
| Total assets, segment | 17 541 | 21 608 | 17 541 | 21 608 |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| TOTAL VEIDEKKE GROUP SEGMENTS (CONTINUED OPE RATIONS AND OPERATIONS HELD FOR SALE |
||||
| Revenue | 10 274 | 10 792 | 39 313 | 38 779 |
| Operating expenses | -9 660 | -10 469 | -37 117 | -37 028 |
| Share of net income from joint ventures | -15 | -63 | 183 | 108 |
| Depreciation/impairment | -226 | -235 | -914 | -893 |
| Gain from sale of property development operations | -3 | - | 591 | - |
| Operating profit (EBIT) | 371 | 25 | 2 056 | 965 |
| Net financial items | 18 | -9 | -13 | -24 |
| Pre-tax profit (EBT) | 389 | 16 | 2 043 | 941 |
| Income tax expenses | -100 | -16 | -290 | -155 |
| Post-tax profit | 289 | - | 1 753 | 786 |
| Total assets, segment | 17 541 | 21 608 | 17 541 | 21 608 |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| IFRS 15-ADJUSTMENTS, DEVELOPMENT OF RESIDENTIAL UNITS IN NORWAY AND SWEDEN1) 2) |
||||
| Revenue | - | 174 | -408 | 653 |
| Operating expenses | - | -124 | 362 | -524 |
| Share of net income from joint ventures | - | 43 | 21 | 26 |
| Depreciation/impairment | - | - | - | - |
| Gain from sale of property development operations | - | - | 433 | - |
| Operating profit (EBIT) | - | 94 | 408 | 155 |
| Net financial items | - | - | - | - |
| Pre-tax profit (EBT) | - | 94 | 408 | 155 |
| Income tax expenses | - | -2 | 28 | 21 |
| Post-tax profit | - | 92 | 436 | 176 |
1) Under IFRS, income and earnings from completed residential units in Norway are not recognised until the date on which a unit is delivered to the buyer. In the internal monitoring of residential projects, the reporting occurs on a percentage of completion basis, meaning that revenue and expenses are recognised based on the following formula: estimated final outcome x stage of completion x sales ratio.
2) See also Note 2 Accounting policies.
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| SEPARATION OF OPERATIONS HELD FOR SALE |
||||
| Revenue | - | -927 | -765 | -2 862 |
| Operating expenses | - | 819 | 733 | 2 518 |
| Share of net income from joint ventures | - | -77 | -200 | -201 |
| Depreciation/impairment | - | 4 | 4 | 6 |
| Gain from sale of property development operations | 1 | -1 024 | - | |
| Operating profit (EBIT) | 1 | -181 | -1 252 | -539 |
| Net financial items | - | 3 | 2 | 26 |
| Pre-tax profit (EBT) | 1 | -179 | -1 249 | -513 |
| Income tax expenses | 3 | 3 | -17 | -9 |
| Post-tax profit | 4 | -176 | -1 266 | -522 |
| Total assets | - | - | - | - |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| TOTAL VEIDEKKE GROUP FINANCIAL ACCOUNTS (CONTINUED OPERATIONS) |
||||
| Revenue | 10 274 | 10 039 | 38 140 | 36 569 |
| Operating expenses | -9 660 | -9 774 | -36 022 | -35 034 |
| Share of net income from joint ventures | -15 | -97 | 4 | -67 |
| Depreciation/impairment | -226 | -231 | -910 | -887 |
| Operating profit (EBIT) | 374 | -63 | 1 213 | 581 |
| Net financial items | 18 | -6 | -11 | 2 |
| Pre-tax profit (EBT) | 391 | -69 | 1 202 | 582 |
| Income tax expenses | -97 | -15 | -279 | -142 |
| Post-tax profit | 295 | -85 | 922 | 440 |
| Total assets group | 17 541 | 21 608 | 17 541 | 21 608 |
| EQUITY HOLDERS OF VEIDEKKE ASA | MINORITY | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Figures in NOK million | Share capital |
Other paid-in capital 1) |
Re evaluation of pensions |
Currency translation differences |
Other retained earnings |
Fair value adjust ments 2) |
Other compre hensive income, opera tions held for sale |
Total | Non controlling interests |
Total |
| Equity at 31.12.2018 | 67 | 305 | -30 | 60 | 3 658 | -101 | 3 959 | 25 | 3 983 | |
| Restatement, consolidation of housing cooperatives in Sweden |
-481 | -481 | 755 | 274 | ||||||
| Equity at 01.01.2019 | 67 | 305 | -30 | 60 | 3 177 | -101 | 3 478 | 779 | 4 257 | |
| Equity at 01.01.2019 | 67 | 305 | -30 | 60 | 3 177 | -101 | 3 478 | 779 | 4 257 | |
| Operations held for sale | 5 | -45 | 40 | - | ||||||
| Profit for the year | 915 | 915 | 48 | 962 | ||||||
| Other comprehensive income |
16 | -32 | 3 | 8 | -6 | -10 | -11 | |||
| Capital increase | 1 | 114 | 115 | 115 | ||||||
| IFRS 2 – share-based transactions employees |
10 | 10 | 10 | |||||||
| Transactions, non-controlling interests |
-33 | -33 | -23 | -56 | ||||||
| Change, non-controlling interests, housing cooperatives in Sweden |
-636 | -636 | ||||||||
| Dividend | -669 | -669 | -25 | -694 | ||||||
| Equity at 31.12.2019 | 67 | 419 | -9 | -17 | 3 405 | -93 | 34 | 3 807 | 142 | 3 949 |
| Equity at 01.01.2020 | 67 | 419 | -9 | -17 | 3 405 | -93 | 34 | 3 807 | 142 | 3 949 |
| Profit for the year | 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 coopera tives in Sweden |
-119 | -119 | ||||||||
| Dividend, non-controlling interests |
-3 037 | -3 037 | -35 | -3 071 | ||||||
| Equity at 31.12.2020 | 67 | 419 | -46 | 54 | 2 514 | -156 | - | 2 853 | 25 | 2 877 |
1) Paid-in capital over and above nominal value of shares.
2) Fair value adjustment of shares held for sale and hedging instruments that qualify for hedge accounting.
Veidekke is a Scandinavian construction company headquartered in Oslo. The consolidated accounts for Q4 2020 include Veidekke ASA and its subsidiaries and the group's investments in associates and joint ventures.
At a board meeting in November 2019, Veidekke's board of directors decided to split the group into two separate operations, and to amend the ownership structure of the property development operation. The property development operation was transferred to new owners on 1 September 2020. The decision to sell the property development operation has influenced the presentation of both the profit and loss account and the balance sheet. Reference is made to Note 2 Accounting principles and the presentation of the effects in Note 4 Operations held for sale.
Through the sale of the property development operation, Veidekke has become a streamlined construction business. The group's segment structure has been amended accordingly, and the new segments are as follows: Veidekke Construction in Norway, Veidekke Infrastructure in Norway, Veidekke in Sweden and Veidekke in Denmark/Hoffmann. These structural changes have been implemented as of the third quarter of 2020, and earlier periods have been recalculated accordingly. Reference is made to the stock-exchange notice dated 22 October 2020.
With the exception of the divestment of the property development operation, the group's entities were the same at the end of the fourth quarter as in the published annual accounts for 2019. Accounting figures in quarterly accounts are not audited.
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 2019, with the exception of the implementation of a new accountning standard for consolidation of housing cooperatives in Sweden.
The decision made in November 2019 to split the group into two separate operations and amend the ownership structure of the property development operation has had a 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. Although the property development operation was sold as at the end of 2020, this does not affect application of the principle.
Veidekke presents 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, operations held for sale. This ensures that continued operations reflect, to the greatest possible degree, the position of this part after completion of the sale.
Assets and related liabilities are presented separately in the balance sheet for the current period. See Note 4 for further discussion.
Veidekke's sale and construction of residential units in Sweden is generally organised in the form of housing cooperatives. Veidekke previously proceeded on the basis that the housing cooperatives were independent entities not under Veidekke's control, and until 2019 (inclusive) such cooperatives were therefore not consolidated into the group's accounts. Following the decision by several major Swedish residential developers to amend their accounting practices in 2020 at the request of the regulatory authorities, Veidekke amended its accounting principle with effect from 1 January 2020, such that debt held by Swedish housing cooperatives was consolidated into the group's financial statements as of that date. In line with the amended principle, income is now recognised at the time of contractual delivery of residential units to end customers, in accordance with the sale principles followed in Norway. Comparative figures for 2019 have been restated accordingly.
For Veidekke, this change of practice entails an increase of NOK 185 million in the post-tax profit pursuant to IFRS for 2020, compared to the position under the formerly applied principl, while the post-tax profit for continued operations increased by NOK 12 million. As at 1 January 2020, the group's interest-bearing debt increased by NOK 678 million, the statement of financial position increased by NOK 676 million and the group's equity was reduced by NOK 48 million as at 01 January 2020.
The annual profit for 2019 recalculated pursuant to the new principle was NOK 295 million higher. Reference is made to the further information in Note 16 Implementation of new accounting principle for housing cooperatives in Sweden.
The change to the accounting principle was implemented in the accounts for the first quarter of 2020.
| Construction in Norway | Infrastructure in Norway | Sweden | |||||
|---|---|---|---|---|---|---|---|
| Figures in NOK million | At 31.12.20 | At 31.12.19 | At 31.12.20 | At 31.12.19 | At 31.12.20 | At 31.12.19 | |
| INCOME STATEMENT | |||||||
| Revenue | 14 638 | 14 464 | 8 847 | 9 209 | 12 293 | 10 803 | |
| Operating expenses | -13 976 | -13 973 | -8 103 | -8 502 | -11 779 | -10 558 | |
| Share of net income from joint ventures | - | - | 5 | 17 | -24 | -108 | |
| Depreciation | -168 | -150 | -457 | -483 | -198 | -166 | |
| Operating profit | 494 | 341 | 292 | 241 | 292 | -29 | |
| Net financial items | 38 | 46 | -48 | -73 | 12 | 4 | |
| Profit before tax | 532 | 387 | 244 | 168 | 303 | -25 | |
| STATEMENT OF FINANCIAL POSITION | |||||||
| Non-current assets | 1 295 | 1 345 | 2 569 | 2 748 | 1 730 | 1 534 | |
| Current assets | 2 174 | 1 968 | 2 471 | 2 390 | 1 893 | 1 752 | |
| Cash and cash equivalents | - | - | - | - | - | - | |
| Receivables, operations held for sale | 3 455 | 3 286 | 26 | 39 | 900 | 394 | |
| Total assets | 6 924 | 6 600 | 5 066 | 5 177 | 4 523 | 3 679 | |
| Equity | 1 167 | 1 189 | 939 | 584 | -302 | 479 | |
| Non-current liability | 864 | 772 | 1 425 | 1 795 | 712 | 623 | |
| Current liabilities | 4 893 | 4 639 | 2 702 | 2 799 | 4 113 | 2 578 | |
| Total equity and liabilities | 6 924 | 6 600 | 5 066 | 5 177 | 4 523 | 3 679 | |
| KEY FIGURES | |||||||
| Number of employees | 2 931 | 3 150 | 2 363 | 2 424 | 2 228 | 2 257 | |
| Order backlog | 13 358 | 14 762 | 7 206 | 8 454 | 14 380 | 11 504 | |
| - due for completion within 12 months | 9 602 | 10 712 | 3 214 | 3 515 | 8 511 | 7 108 | |
| At 31.12.20 At 31.12.19 At 31.12.20 At 31.12.19 At 31.12.20 At 31.12.19 At 31.12.20 2 652 2 358 49 7 -339 -271 38 140 -2 429 -2 160 -142 -94 339 266 -36 090 - - 23 24 - - 4 -29 -31 -56 -57 - - -910 194 167 -127 -120 1 -5 1 145 6 2 -19 22 - - -11 200 169 -146 -98 1 -5 1 134 244 256 2 805 3 201 -2 191 -2 542 6 452 273 144 6 293 849 -5 233 -343 7 870 - - - - - 5 073 - 1 311 991 743 325 -3 216 -4 794 3 219 1 828 1 391 9 841 4 375 -10 641 -2 607 17 541 418 369 2 829 1 829 -2 171 -1 667 2 877 114 84 3 146 2 360 -3 234 -445 3 031 1 296 938 3 867 186 -5 235 -496 11 633 1 828 1 391 9 841 4 375 -10 641 -2 607 17 541 436 482 124 54 - - 8 082 2 516 1 983 - - - - 37 460 |
Denmark | Other operations | Eliminations | Group, continued operations |
|||||
|---|---|---|---|---|---|---|---|---|---|
| At 31.12.19 | |||||||||
| 36 569 | |||||||||
| -35 021 | |||||||||
| -67 | |||||||||
| -887 | |||||||||
| 594 | |||||||||
| 596 | |||||||||
| 6 542 | |||||||||
| 6 759 | |||||||||
| 5 073 | |||||||||
| 241 | |||||||||
| 18 616 | |||||||||
| 2 782 | |||||||||
| 5 189 | |||||||||
| 10 644 | |||||||||
| 18 616 | |||||||||
| 8 367 | |||||||||
| 36 704 | |||||||||
| 1 454 | 2 145 | - | - - |
- | 23 471 | 22 789 |
| Eliminations between continued operations and |
||||||||
|---|---|---|---|---|---|---|---|---|
| continued operations | Group, | Property development (held for sale) |
from sale | Property development, gains | Group | |||
| Figures in NOK million | At 31.12.20 | At 31.12.19 | At 31.12.20 | At 31.12.19 | At 31.12.20 | At 31.12.19 | At 31.12.20 | At 31.12.19 |
| INCOME STATEMENT | ||||||||
| Revenue | 38 140 | 36 569 | 1 893 | 3 053 | -721 | -844 | 39 313 | 38 779 |
| Operating expenses | -36 090 | -35 021 | -1 748 | -2 850 | 721 | 843 | -37 117 | -37 028 |
| Share of net income from joint ventures |
4 | -67 | 179 | 175 | - | - | 183 | 108 |
| Depreciation | -910 | -887 | -4 | -6 | - | - | -914 | -893 |
| Gain from sale of property development operations |
591 | 591 | ||||||
| Operating profit | 1 145 | 594 | 320 | 372 | 591 | -1 | 2 056 | 965 |
| Net financial items | -11 | 2 | -2 | -16 | - | -10 | -13 | -24 |
| Profit before tax | 1 134 | 596 | 318 | 356 | 591 | -11 | 2 043 | 941 |
| STATEMENT OF FINANCIAL POSITION |
||||||||
| Non-current assets | 6 452 | 6 542 | - | 1 533 | - | - | 6 452 | 8 075 |
| Current assets | 7 870 | 6 759 | - | 7 091 | - | -601 | 7 870 | 13 249 |
| Receivables, operations held for sale |
- | 5 073 | - | - | - | -5 073 | - | - |
| Cash and cash equivalents |
3 219 | 241 | - | 42 | - | - | 3 219 | 283 |
| Total assets | 17 541 | 18 616 | - | 8 666 | - | -5 674 | 17 541 | 21 608 |
| Equity | 2 877 | 2 782 | - | 2 435 | - | -956 | 2 877 | 4 261 |
| Non-current liability | 3 031 | 5 189 | - | 4 233 | - | -4 158 | 3 031 | 5 264 |
| Current liabilities | 11 633 | 10 644 | - | 1 997 | - | -559 | 11 633 | 12 082 |
| Total equity and liabilities |
17 541 | 18 616 | - | 8 666 | - | -5 674 | 17 541 | 21 608 |
| KEY FIGURES | ||||||||
| Number of employees | 8 082 | 8 367 | - | 190 | - | - | 8 082 | 8 557 |
| Order backlog | 37 460 | 36 704 | - | - | - | - | 37 460 | 36 704 |
| - due for completion within 12 months |
23 619 | 22 789 | - | - | - | - | 23 619 | 22 789 |
In November 2019, Veidekke's board decided to split the group into two separate operations, and to amend the ownership structure of the property development operation. The decision was the result of a strategic review of the group's composition and an assessment of the growth and development opportunities available for Veidekke's various operational areas.
On 16 June 2020, Veidekke signed an agreement for the sale of the Swedish and Norwegian property development operations to a consortium comprising Fredensborg AS, Fredensborg Bolig AS, Norwegian Property ASA and Union Real Estate Fund. The transaction was completed on 1 September 2020. The sold company has been renamed Nordr Eiendom. For further information about the transaction, see Note 8.
The property development operation is presented as held for sale in the accounts.
The post-tax profit/loss of an operation held for sale is presented on a separate line in the income statement, recalculated for earlier periods. Assets and related liabilities are presented separately in the statement of financial positiont for the current period.
Note 3 Segment information provides information on segments subject to a reporting obligation as reviewed by the chief operating decision maker. Classification of the property development operation as an asset held for sale has not altered the information which is reported to and reviewed by the chief operating decision maker. As in earlier years, therefore, the segment information in Note 3 includes the property development operation.
The profit/loss of the property development operation held for sale is presented below. The implementation of the new accounting standard for housing cooperatives in Sweden has been taken into account.
| Property, segment accouts |
IFRS adjust ment1) |
Operations held for sale, adjustments |
Gain from sale of property development operations |
Total operations held for sale |
Property, segment accounts |
IFRS adjust ment1) |
Operations held for sale, adjustments |
Total operations held for sale |
|---|---|---|---|---|---|---|---|---|
| 927 | ||||||||
| -925 | -140 | 246 | -819 | |||||
| 34 | 43 | - | 77 | |||||
| -4 | - | - | -4 | |||||
| -1 | -1 | - | - | - | ||||
| -1 | -1 | 105 | 77 | -1 | 181 | |||
| -4 | - | 1 | -3 | |||||
| -1 | -1 | 101 | 77 | - | 179 | |||
| -3 | -3 | -4 | 1 | - | -3 | |||
| -4 | -4 | 97 | 79 | - | 176 | |||
| Q4 2020 | 1 000 | 174 | Q4 2019 restated -247 |
1) Under IFRS, income and earnings from completed residential units in Norway are not recognised until the date on which a unit is delivered to the buyer.
| 31.12.2020 | 31.12.2019 restated | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Figures in NOK million | Property, segment accounts |
IFRS adjust ment1) |
Operations held for sale, adjustments |
Gain from sale of proterty development operations |
Total operations held for sale |
Property, segment accounts |
IFRS adjust ment1) |
Operations held for sale, adjustments |
Total operations held for sale |
| Revenue | 1 893 | -366 | -762 | - | 765 | 3 053 | 653 | -844 | 2 862 |
| Operating expenses | -1 747 | 253 | 762 | - | -733 | -2 850 | -510 | 843 | -2 518 |
| Share of net income from joint ventures |
179 | 21 | - | - | 200 | 175 | 26 | - | 201 |
| Depreciation/ impairment |
-4 | - | - | - | -4 | -6 | - | - | -6 |
| Gain from sale of property development operations |
- | - | - | 1 024 | 1 024 | - | - | - | - |
| Operating profit (EBIT) | 320 | -92 | - | 1 024 | 1 252 | 372 | 169 | -1 | 539 |
| Net financial items | -2 | - | - | - | -2 | -16 | - | -10 | -26 |
| Pre-tax profit (EBT) | 318 | -92 | - | 1 024 | 1 250 | 356 | 169 | -11 | 513 |
| Income tax expense | -22 | 33 | - | 5 | 17 | -12 | 18 | 2 | 9 |
| Post-tax profit | 296 | -59 | - | 1 030 | 1 266 | 344 | 187 | -9 | 522 |
1) Under IFRS, income and earnings from completed residential units in Norway are not recognised until the date on which a unit is delivered to the buyer.
See note 15 for futher information on the accounting effects of the implementation of new accounting standard for housing cooperatives in Sweden.
Construction and property development projects represent a large part of Veidekke's operations. Accounting for project activities is largely based on estimates. Significant judgements used in applying the group's accounting policies and the main sources of estimate uncertainty at the end of Q4 2020 are unchanged from those in the 2019 annual report.
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
|---|---|---|---|---|
| PROPERTY, PLANT, EQUIPMENT AND OTHER INTANGIBLE ASSETS |
||||
| Carrying amount at start of period | 3 818 | 4 143 | 3 990 | 3 489 |
| Implementation of IFRS 16 Leases at 01.01.2019 | 945 | |||
| Additions | 302 | 260 | 818 | 718 |
| Additions from acquisitions of operations | - | - | 1 | 4 |
| Depreciation | -226 | -235 | -909 | -893 |
| Currency translation differences, etc. | -13 | 17 | 76 | -20 |
| Disposals of non-current assets | -21 | -92 | -116 | -149 |
| Separation of non-current assets held for sale | -103 | - | -103 | |
| Carrying amount at end of period | 3 859 | 3 990 | 3 859 | 3 990 |
| Other intangible assets | 130 | 94 | 130 | 94 |
| Land and buildings | 1 318 | 1 253 | 1 318 | 1 253 |
| Plant and machinery | 2 411 | 2 644 | 2 411 | 2 644 |
| Carrying amount at end of period | 3 859 | 3 990 | 3 859 | 3 990 |
| Figures in NOK million | Q4 2020 | Q4 2019 | At 31.12.2020 | At 31.12.2019 |
| GOODWILL | ||||
| Carrying amount at start of period | 1 837 | 1 777 | 1 790 | 1 807 |
| Additions | - | - | - | 3 |
| Impairment | - | - | - | - |
| Currency translation differences | -13 | 14 | 83 | -20 |
| Disposals | - | - | -49 | - |
| Carrying amount at end of period | 1 824 | 1 790 | 1 824 | 1 790 |
On 1 September 2020, Veidekke transferred the Norwegian and Swedish property development operation to a consortium (the purchaser) comprising Fredensborg AS, Fredensborg Bolig AS, Norwegian Property ASA and Union Real Estate Fund III Holding AS.
The consideration paid for the operation amounted to NOK 3.2 billion. The agreed payment was NOK 3.3 billion, but this sum was reduced by NOK 0.1 billion to take account of a dividend paid to Veidekke prior to the implemented transaction. Veidekke Eiendom's debt to Veidekke ASA totalling NOK 3.9 billion was repaid on the transfer date. In addition, a deferred project payment of NOK 0.4 billion remained unpaid as at the settlement date. This will be settled upon project completion in 2021.
The capital invested in the divested property development operation totalled NOK 7.3 billion (IFRS) as at the settlement date. The transaction generated a book gain of NOK 1,123 million (IFRS) after tax. This is shown on the following lines of the income statement: NOK 1,030 million increase in post-tax profit from operations held for sale, NOK 119 million increase in operating profit from continued operations and NOK 26 million increase in tax cost for continued operations. In addition, a post-tax profit of NOK 237 million stemming from the property development operation has been recognised for the period of Veidekke's ownership (up to and including August 2020). The Q3 2020 report referred to a gain of NOK 1,130 million. This figure has been reduced by NOK 7 million to take account of anticipated tax costs.
The segment accounts include recognition of a posttax gain of NOK 586 million on the sale of the property development operation (NOK 591 million pre-tax). In addition, a post-tax profit of NOK 296 million (NOK 318 million pre-tax) has been recognised for the period up to and including August 2020.
The COVID-19 pandemic has impacted the group and its financial instruments in the form of an increased focus on liquidity, including monitoring of outstanding receivables. The credit risk associated with outstanding receivables is still deemed to be low. Further details of financial risks and the group's use of financial instruments can be found in the 2019 annual report.
The Q3 report stated that unrealised losses linked to financial instruments totalling NOK 25 million had been recognised in the accounts. Some of these losses were reversed in the fourth quarter, and the accounts as at 31 December show a realised loss of NOK 14 million. The loss has been recorded in the accounts on the line Financial costs.
The accounts for 2019 were approved at the annual general meeting held on 6 May 2020. Uncertainty about the impact of the Covid-19 pandemic resulted in cancellation of the originally proposed dividend for the 2019 financial year.
An extraordinary general meeting held on 3 December 2020 approved distribution of a dividend totalling NOK 22.50 per share. The dividend comprised NOK 20 stemming from the sale of the property development operation and NOK 2.50 in respect of the 2019 financial year, i.e. 50% of the originally proposed dividend.
Veidekke refinanced its bank loans in December 2020. The new agreements include a NOK 1.75 billion overdraft facility with DNB (rolling 364-day maturity) and a NOK 0.75 billion credit facility with SEB (three-year maturity and two oneyear extension options). These facilities remained unutilised at year-end 2020.
Cash and cash equivalents amounted to NOK 3.2 billion, including NOK 1.3 billion invested in a money market fund. Veidekke has also invested NOK 0.5 billion in a bond fund.
The following covenant is contained in the loan agreements with DNB Bank and SEB:
Net interest-bearing debt divided by EBITDA for the previous four quarters shall not exceed 3.0. At 31 December 2020 the ratio was 0.
Net interest-bearing debt is defined as the group's current and non-current interest-bearing liabilities minus the group's cash and cash equivalents and interest-bearing receivables.
EBITDA is the group's operating profit plus depreciation and impairment.
No events have occurred after the balance sheet date which would have had a material effect on the issued accounts.
Sales of completed residential units in Norway and Sweden are only recognised as income on the date of delivery to the end customer. Income previously deferred by the construction operations was recognised in the accounts at the time of the sale of the property development operation.
In Veidekke's internal monitoring of residential projects, measurement is undertaken on an ongoing income recognition basis. Income and profits are therefore recognised in the accounts in accordance with each project's estimated final profit, sales ratio and completion ratio. This principle is followed in the segment reports.
Veidekke generally reports its financial results in line with International Financial Reporting Standards (IFRS). In addition, the following alternative performance measures are also reported:
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 interestbearing receivables, both current and non-current. This key figure is also included in the calculation of covenants in the loan agreement.
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.
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.
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.
| INCOME STATEMENT | 31.12.2020 | ||
|---|---|---|---|
| Previous standard | New standard | ||
| Figures in NOK million | Consolidation of housing cooperatives |
||
| Revenue | 38 140 | - | 38 140 |
| Operating expenses | -36 037 | 15 | -36 022 |
| Share of net income from associates and joint ventures |
4 | - | 4 |
| Operating profit before depreciation (EBITDA) |
2 108 | 15 | 2 122 |
| Depreciation | -910 | - | -910 |
| Operating profit (EBIT) | 1 198 | 15 | 1 213 |
| Financial income | 80 | - | 80 |
| Financial costs | -91 | - | -91 |
| Pre-tax profit, continued operations |
1 187 | 15 | 1 202 |
| Tax expenses | -280 | -3 | -283 |
| Post-tax profit, continued operations |
907 | 12 | 918 |
| of which non-controlling interests | 81 | - | 81 |
| Post-tax profit, operations held for sale |
1 093 | 173 | 1 266 |
| of which non-controlling interests | - | - | - |
| Post-tax profit for the period | 2 000 | 185 | 2 185 |
| 31.12.2019 | |||
|---|---|---|---|
| Previous standard | New standard | |||
|---|---|---|---|---|
| Figures in NOK million | Consolidation of housing cooperatives |
|||
| Revenue | 36 569 | - | 36 569 | |
| Operating expenses | -35 020 | -14 | -35 034 | |
| Share of net income from associates and joint ventures |
-67 | - | -67 | |
| Operating profit before depreciation (EBITDA) |
1 482 | -14 | 1 468 | |
| Depreciation | -887 | - | -887 | |
| Operating profit (EBIT) | 595 | -14 | 581 | |
| Financial income | 56 | - | 56 | |
| Financial costs | -54 | - | -54 | |
| Pre-tax profit, continued operations |
596 | -14 | 582 | |
| Tax expenses | -145 | 3 | -142 | |
| Post-tax profit, continued operations |
451 | -11 | 440 | |
| of which non-controlling interests | 48 | - | 48 | |
| Post-tax profit, operations held for sale |
217 | 306 | 522 | |
| of which non-controlling interests | - | - | - | |
| Post-tax profit for the period | 667 | 295 | 962 |
| 31.12.2020 | ||||||
|---|---|---|---|---|---|---|
| Previous standard | New standard | |||||
| Figures in NOK million | Total operations held for sale |
Consolidation of housing cooperatives |
Total operations held for sale |
|||
| Revenue Operating expenses |
1 682 -857 |
- 84 |
1 682 -773 |
|||
| Share of net income from associates and joint ventures |
290 | 88 | 378 | |||
| Depreciation/impairment | -4 | - | -4 | |||
| Operationg profit (EBIT) | 1 111 | 173 | 1 283 | |||
| Net financial items | 30 | - | 30 | |||
| Pre-tax profit (EBT) | 1 142 | 173 | 1 314 | |||
| Tax expenses | -49 | - | -49 | |||
| Post-tax profit | 1 093 | 173 | 1 266 |
| Previous standard | New standard | ||||
|---|---|---|---|---|---|
| Figures in NOK million | Total operations held for sale |
Consolidation of housing cooperatives |
Total operations held for sale |
||
| Revenue | 1 652 | 1 211 | 2 862 | ||
| Operating expenses | -1 552 | -966 | -2 518 | ||
| Share of net income from associates and joint ventures |
141 | 60 | 201 | ||
| Depreciation/impairment | -6 | - | -6 | ||
| Operationg profit (EBIT) | 235 | 304 | 539 | ||
| Net financial items | -26 | - | -26 | ||
| Pre-tax profit (EBT) | 209 | 304 | 513 | ||
| Tax expenses | 7 | 1 | 9 | ||
| Post-tax profit | 217 | 306 | 522 |
| 31.12.2019 | |||||
|---|---|---|---|---|---|
| Previous standard | New standard | ||||
| Consolidation | |||||
| of housing | |||||
| Figures in NOK million | cooperatives | ||||
| ASSETS | |||||
| Total non-current assets | 6 542 | 6 542 | |||
| Trade and other receivables, contract assets | 5 688 | -9 | 5 679 | ||
| Other non-current assets | 843 | 843 | |||
| Total current assets | 6 531 | -9 | 6 522 | ||
| Total assets held for sale | 8 236 | 685 | 8 920 | ||
| Total assets | 21 309 | 676 | 21 985 | ||
| EQUITY AND LIABILITIES | |||||
| Share capital | 67 | 67 | |||
| Other equity | 3 907 | -167 | 3 740 | ||
| Non-controlling interests | 24 | 119 | 142 | ||
| Equity | 3 998 | -48 | 3 949 | ||
| Pension liabilities | 917 | -2 | 915 | ||
| and deferred tax | |||||
| Other non-current liabilities | 4 269 | 4 269 | |||
| Total non-current liabiities | 5 186 | -2 | 5 184 | ||
| Total current liabilites | 10 520 | 10 520 | |||
| Total liabilities related to assets held for sale | 1 605 | 726 | 2 331 | ||
| Total equity and liabilites | 21 309 | 676 | 21 985 |
| Previous standard | New standard | |
|---|---|---|
| Total operations held for sale |
Consolidation of housing cooperatives |
Total operations held for sale |
| 76 | ||
| 7 | ||
| 27 | ||
| 1 225 | ||
| 4 | 4 | |
| 5 913 | 790 | 6 703 |
| 859 | -58 | 802 |
| 42 | 35 | 76 |
| 8 236 | 685 | 8 920 |
| 36 | 36 | |
| 690 | ||
| 558 | ||
| 1 000 | 48 | 1 048 |
| 1 605 | 726 | 2 331 |
| 76 7 27 1 307 12 558 |
-82 678 |
Veidekke ASA
Postboks 505 Skøyen 0214 Oslo
Telephone: +47 21 05 50 00 Website: veidekke.com/en E-mail: [email protected]
Business registration number: 917103801 Founded: 1936 Head office: Skabos vei 4, Skøyen, 0278 Oslo
The Company's articles of association and corporate governance policy are available at: veidekke.com/en/corporate-governance
Svein Richard Brandtzæg (chair) Gro Bakstad Ingalill Berglund Ingolv Høyland Daniel Kjørberg Siraj Hanne Rønneberg Per-Ingemar Persson Inge Ramsdal, elected among employees Odd Andre Olsen, elected among employees Arve Fludal, elected among employees
| Group CEO |
|---|
| Executive Vice President, CFO |
| Executive Vice President Risk Management and IT |
| Executive Vice President Strategy and Sustainability |
| Executive Vice President Communications and Branding |
| Executive Vice President HR and HSE |
| Executive Vice President Veidekke Construction in Norway |
| Executive Vice President Veidekke Infrastructure in Norway |
| Executive Vice President Veidekke Sweden |
Investor relations: Jørgen Wiese Porsmyr, CFO Telephone: +47 907 59 058 E-mail: [email protected]
First quarter: 6 May 2021 Second quarter: 19 August 2021 Third quarter: 11 November 2021
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.
veidekke.com/en
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