Veidekke — Earnings Release 2015

Mar 7, 2016

Veidekke ASA: Veidekkes Economic Activity Report: The building and construction market keeps growing

Veidekke ASA: Veidekkes Economic Activity Report: The building and construction market keeps growing

"We expect the Scandinavian building and construction market to grow by slightly

more than 3 per cent in both 2016 and 2017. The greatest contribution is

expected to be from Sweden in the next few years, where the housing market in

particular is strong. In Norway regional variations are on the increase. We

expect the greatest growth to be in the construction area," says Kristoffer Eide

Hoen, Director of Analysis with Veidekke.

The public sector drives growth in Norway

For the years 2016 and 2017 as a whole, investment growth at approximately the

same rate as in 2015 is expected for the market overall, but with the

construction sector as a key force for growth.

"Growth for the building and construction market is expected to slow from 3 per

cent in 2016 to 1 per cent in 2017, as a result of some decline in the private

building segments. We expect developments in the market for new housing to be

moderate in 2016 and 2017, and with increased regional variation. Growth in

housing prices for the country in general will in our assessment remain

positive, but will likely be lower than in 2015. At the same time we expect a

lower rate of new housing start-ups and a moderate decline in overall housing

investments. On the other hand, public non-residential building is expected to

increase by 3 per cent and construction projects by 9 per cent over the next

years," says Hoen.

Still going strong in the Swedish markets

"The Swedish economy is currently booming and heading for an upturn. Based on

macro-economic developments we expect a continued strong Swedish building and

construction market in 2016 and 2017, with growth rates of around 4 per cent for

both years. For the two years we assume investment growth for housing of 5 and

2 per cent respectively, for private and public non-residential building of 4-5

per cent for both years, and the same for the construction sector," Hoen

continues.

Improvements in Denmark

"While the public sector is in low power mode, we believe in growth in the

Danish private sector. As in Sweden it is housing investments that are making

the strongest contribution, and we estimate a 5 per cent increase in 2016 and

10 per cent in 2017. This means that the building and construction market will

grow by 3 per cent in 2016 and 5 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.

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