Veidekke — Earnings Release 2014

Feb 12, 2015

Veidekke ASA: Strong results for Veidekke

Veidekke ASA: Strong results for Veidekke

Veidekke's improvement continues, with the fourth quarter bringing a profit of

NOK 368 million and revenue of NOK 6.6 billion. Profit for the full year 2014

was NOK 967 million and revenue was up to NOK 23.9 billion. "We had both growth

and increased profit in the last quarter of the year. In addition, the backlog

is good and the company entered 2015 with a solid financial position," says

President & CEO Arne Giske.

Veidekke's Q4 revenue amounted to NOK 6,619 (6,146 in 2013) million and profit

was NOK 368 (335) million. This gives a profit margin of 5.6% (5.5%). Revenue

for the full year 2014 was NOK 23,863 (21,191) million. Profit before tax was

NOK 967 (776) million, with a profit margin of 4.1% (3.7%). The total order

backlog is now NOK 17.1 (18.2) billion. The figures are taken from the segment

accounts. Earnings per share (IFRS) was NOK 6.30 (4.50) for the year. Veidekke's

Board proposes that the dividend be increased from NOK 3.00 per share in 2013 to

NOK 3.50 per share for the year 2014.

"Construction operations had a high level of activity in all countries in the

fourth quarter.  Norway and Denmark show consistently good margins, while in

Sweden we need to improve profitability. With a satisfactory order situation, a

good position in commercial and residential buildings, and major infrastructure

projects coming to the market, everything is in place for higher earnings," says

Arne Giske.

"The fourth quarter has also been positive for our property development

operations, with strong sales in both Norway and Sweden in addition to realised

development gains. The good housing market appears to be continuing in 2015 in

both countries," he adds. At the end of 2014, Veidekke had 1,149 (1,469)

residential units under construction, a sales ratio of 82% (74%) and a land bank

containing 10,900 (10,400) units.

"This has been a good year for our industrial operations, with the end of the

year having been particularly strong - for the first time, we have produced 2.6

million tonnes of asphalt and over 8 million tonnes of aggregates. Our strategic

positions and improvements in asphalt, aggregates and road maintenance have paid

off extremely well," concludes President & CEO Arne Giske.

Despite systematic preventive OHS work, a fatal accident occurred at one of

Veidekke quarries in November. An investigation group has been appointed, and

necessary measures have and will be implemented to prevent similar accidents.

The Group's LTI rate was 5.5 (5.2) at the end of Q4 and sickness absence was

4.0 (4.2). The figures are on a 12 months rolling basis.

See also the Board of Directors' Report for Q4 2014, which is attached to this

press release.

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

contact:

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

arne.giske@veidekke.no

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

Director of Communications Grete Nykkelmo, tel. +47 913 11 000,

grete.nykkelmo@veidekke.no

Veidekke is one of Scandinavia's largest contractors and property developers.

The company undertakes all types of building construction and civil engineering

contracts, maintains roads and produces asphalt, crushed stone and gravel.  The

company's operations are characterised by involvement and local knowledge.

Revenue is just under 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 reported 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#1893731]