Veidekke

Earnings Release • Mar 25, 2020

Veidekke ASA: Update on the consequences of the coronavirus pandemic

Veidekke ASA: Update on the consequences of the coronavirus pandemic

Veidekke is taking steps to limit the spread of the coronavirus while at the

same time safeguarding operations and deliveries to customers. The outbreak has

so far had limited effect on the progress of the group's construction projects

and residential sales, but government restrictions and considerable uncertainty

about future markets should be expected to affect Veidekke's operations in all

three Scandinavian countries.

The concern for life and health is always Veidekke's first priority, and the

company has implemented a number of measures to protect employees and those

working at Veidekke's sites against the spread of the coronavirus. Veidekke

complies with the authorities' requirements, recommendations and regulations in

Norway, Sweden and Denmark respectively.

Production in the construction projects is generally progressing as normal, but

at somewhat lower capacity, and this affects both turnover and progress in the

projects. Veidekke currently has few temporary layoffs as a result of the

coronavirus pandemic, but is continuously assessing the need for further

adjustments to the expected level of activity.

For the industrial operation, the consequences of the coronavirus come on top of

an already challenging market situation for the Norwegian asphalt operation, as

communicated in the fourth quarter report.

Veidekke's property development operation has made a number of adjustments to

prevent virus transmission. Last week, the Gartnerkvartalet residential project

in Oslo conducted an online open house, which attracted many visitors.

Veidekke's report on property sales in the first quarter will be published on

Friday 3 April.

"At present, we have no basis for assessing the extent or duration of the

ongoing extraordinary infection control measures. Should the measures be

prolonged and escalate, significantly reduced production and lower demand are to

be expected. If the measures are of a more limited duration, ongoing production

volumes and order backlog indicate good activity in all three countries through

2020," says Jimmy Bengtsson, CEO of Veidekke ASA.

Veidekke has a good order backlog, a solid financial position and a sound

financial capacity. At year-end, the contracting business's order book amounted

to NOK 34.3 billion. Equity at year-end amounted to NOK 4.0 billion, and net

interest-bearing debt was NOK 2.7 billion.

In December 2019, Veidekke entered into a new two-year NOK 3.6 billion loan

agreement, which comes in addition to a NOK 2.3 billion credit facility. At the

onset of 2020, unutilised credit amounted to NOK 4.5 billion.

For more information, contact:

Jørgen G. Michelet, Finance Director tel. +47 917 43 856,

jorgen.michelet@veidekke.no

Lars Erik Lund, EVP Communications and Public Affairs, tel. +47 413 31 369,

lars.lund@veidekke.no

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

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest construction and property development

companies. The company undertakes all types of building construction and civil

engineering contracts, develops residential projects, maintains roads, and

produces asphalt and aggregates. The company is known for its involvement and

local knowledge. Its annual turnover is NOK 39 billion, and half of its 8,600

employees own shares in the company. Veidekke is listed on the Oslo Stock

Exchange and has always posted a profit since it was founded in 1936.