Veidekke — Earnings Release 2015

Sep 14, 2016

Veidekke ASA: Veidekke's Economic Activity Report: Growth in the building and construction market continues

Veidekke ASA: Veidekke's Economic Activity Report: Growth in the building and construction market continues

The Scandinavian building and construction market has generally been very good

in recent years, and Veidekke is expecting that it will grow by a further four

to five per cent in 2016 and 2017. "The building and construction market has

become an important contributor to our economy through increased housing

investments and the large transport projects in Norway and Sweden," says

Kristoffer Eide Hoen, Director of Analysis with Veidekke.

The housing market and the public sector are responsible for the strongest

growth in Norway

For 2016 and 2017 investment growth of 4% is expected for the building and

construction market in Norway, with housing and civil engineering as the primary

growth areas.

"Our forecast for housing investments in 2016 has been adjusted upwards from 0

to 5% growth as a result of developments so far this year. A high order intake

indicates an adjustment of the investment estimate for 2017 as well, and the

forecast has been revised up to 5%. For the autumn of 2016 and throughout 2017,

new, large transport projects will contribute to maintain growth in the civil

engineering sector at the current high level. We also expect municipalities to

contribute with further growth through their water and drainage investments,"

Hoen says.

Booming economy and broad Swedish upswing

The Swedish building and construction market increased by 8% in 2015, and here

Veidekke is expecting continued growth at 9% in 2016 and 3% in 2017.

"The Swedish economy is continuing to expand at a high rate. Strong developments

in the labour market are stimulating household growth in income and demand, and

also result in substantial revenue for the municipal and state sector.

Meanwhile, it is natural that the strong upturn in investments we have seen in

recent years - including housing investments - will level off at high level,"

Hoen continues.

Housing investments provide increase in Denmark

"Denmark has poor economic growth, but a strong labour market. Housing

investments are providing an increase in building and construction, while the

private sector is continuing to show restraint. This entails that we expect the

building and construction market to grow by 3 per cent in 2016 and 4 per cent in

2017," Hoen concludes.

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

contact:

Director Kristoffer Eide Hoen, tel. +47 97 67 54 34,

kristoffer.eide.hoen@veidekke.no

Communications Manager Helge Dieset, tel. +47 90 55 33 22,

helge.dieset@veidekke.no

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

companies. The company undertakes all types of building and construction

contracts, maintains roads and produces asphalt and aggregates. The company's

operations are characterised by involvement and local knowledge. Revenue is NOK

24.5 billion (2015), and half of the 7,000 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.