Veidekke — Earnings Release 2015

Nov 4, 2015

Veidekke ASA: Strong quarter for Veidekke

Veidekke ASA: Strong quarter for Veidekke

Veidekke's healthy profit performance has continued through the third quarter.

Revenue totalled NOK 5.9 billion, while profit before tax was NOK 390 million.

"Q3 was another quarter with profit growth, an increased order backlog and good

residential sales. In addition, we have strengthened our positions through

strategic acquisitions and new property projects," says President and CEO Arne

Giske.

Veidekke's revenue in the third quarter of 2015 amounted to NOK 5.9 billion (NOK

6.0 billion in Q3 2014), and profit before tax was NOK 390 (370) million. This

corresponds to a profit margin of 6.6% (6.2%). The combined order backlog has

grown some 51% since the beginning of the year and now totals NOK 25.3 billion.

The figures are from the segment accounts. Earnings per share (IFRS) was NOK

1.8 (2.2) for the quarter.

Veidekke's construction operations reported revenue of NOK 4.5 (4.4) billion for

the third quarter and profit before tax of NOK 163 (148) million. "We have won

many new contracts this quarter and are pleased to see that the order backlog is

increasing in all three countries. In addition, we have made a number of

acquisitions in Norway and Sweden," says Giske. During the third quarter

Veidekke completed the acquisition of Reinertsen Entreprenør and Rekab's

construction operations in Uppsala, as well as signing a letter of intent to

acquire 80% of the shares in the civil engineering contractor Leif Grimsrud AS.

Property Development had revenue of NOK 479 (338) million and a profit before

tax of NOK 52 (37) million. Veidekke sold a total of 328 residential units in

the quarter for a value of NOK 1.2 billion. Veidekke's share amounted to 269

(271) units. At the end of the quarter, there were a total of 2,289 residential

units under construction, of which Veidekke's share was 1,684, and the sales

ratio was an impressive 86% (81%).

"We have had good sales this quarter too, and the market still looks promising,

especially in Sweden. So far this year we have sold NOK 5 billion worth of

homes. This will in turn boost production in the coming periods and was

reflected in a 20% increase in the number of units in production in Q3," says

Giske.

Veidekke's industrial operations reported revenue of NOK 1.4 (1.5) billion and a

profit before tax of NOK 192 (193) million. "The third quarter is the high

season for Asphalt, and with good operations both in the asphalt and aggregates

units, Industry has delivered very solid results," says Giske.

The focus on occupational health and safety is yielding results in terms of a

decrease in the number of injuries. The lost-time injury (LTI) rate, indicating

the number of injuries resulting in absence from work per million hours worked,

was 4.7 (6.2). Sickness absence remains at a stable, low level of 4.0% (3.9%).

The figures are for the last 12 months as at the third quarter.

Please refer to the Board of Director's report for the third quarter of 2015 for

additional information.

For press photos, see www.flickr.com/photos/veidekke, for more information,

contact:

President and CEO Arne Giske, tel. +47 21 05 50 00 / +47 90 58 95 26,

arne.giske@veidekke.no

CFO Terje Larsen, tel. +47 90 68 78 51, terje.larsen@veidekke.no

SVP Communications Grete Nykkelmo, tel. +47 91 31 10 00,

grete.nykkelmo@veidekke.no

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

companies. The company undertakes all types of construction and civil

engineering contracts, maintains roads, and produces asphalt and aggregates. The

company is characterised by involvement and local knowledge. Revenue is almost

NOK 24 billion (2014), and half of the 6,400 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.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1963892]