Veidekke — Earnings Release 2015

Feb 11, 2016

Veidekke ASA: Nine-figure profit for Veidekke in 2015

Veidekke ASA: Nine-figure profit for Veidekke in 2015

Veidekke continued its strong performance in the fourth quarter too, and for the

full year the Group had revenue of NOK 24.5 billion and a profit of just over

NOK 1 billion. "2015 was an excellent year for Veidekke, with good profit

growth. We have strengthened our positions through acquisitions, we have seen a

sharp increase in the order backlog, residential sales are healthy, and we have

a solid financial position. This means we are entering 2016 at a running pace,"

says Arne Giske.

Veidekke's revenue in the fourth quarter of 2015 amounted to NOK 7.3 billion

(NOK 6.6 billion in Q4 2014), and profit before tax was NOK 376 (368) million.

This corresponds to a profit margin of 5.1% (5.6%). For 2015 as a whole, revenue

amounted to NOK 24.5 (23.9) billion. Profit before tax was NOK 1,043 (967)

million, with a profit margin of 4.3% (4.1%). The combined order backlog at

year-end totalled NOK 24.8 (16.8) billion. The figures are from the segment

accounts. Earnings per share (IFRS) was NOK 5.7 (6.3) for the year. Veidekke's

Board proposes that the dividend be increased to NOK 4.00 per share for 2015

from NOK 3.50 in 2014.

"Construction has seen consistently high activity in the fourth quarter. Growth

and volume increases have marked building construction operations, while we are

seeing good improvements in profitability in civil engineering operations," says

Giske.

Revenue in Veidekke's construction operations in 2015 amounted to NOK 19.8

(18.5) billion, and the profit was NOK 644 (549) million. The order backlog grew

by 50% and was NOK 23.7 (15.8) billion at the end of the quarter.

"Residential sales have been high in both Norway and Sweden, especially in the

areas around the capitals. With a high sales ratio, particularly in Sweden, we

are therefore concentrating on getting new projects out on to the market,"

continues Giske.

Property Development had revenue of NOK 2.1 (2.3) billion for 2015 and a profit

before tax of NOK 306 (280) million. Veidekke sold a total of 1,804 residential

units in the quarter for a value of NOK 6.5 billion. Veidekke's share amounted

to 1,416 (770) units. At the end of the quarter, there were a total of 2,381

units under construction, of which Veidekke's share was 1,739, and the sales

ratio was an impressive 90% (82%).

Industrial had a good quarter too. High activity and efficient operation in both

Asphalt and Aggregates have yielded solid results. Veidekke's industrial

operations reported revenue of NOK 4.0 (4.1) billion for full year 2015 and a

profit before tax of NOK 190 (210) million. However, the profit was impacted by

weak profitability in Road Maintenance.

"Veidekke has worked systematically to improve safety in our projects. It is

particularly pleasing to see the number of injuries cut by 22% over the last

year," says Giske.

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

absence from work per million hours worked, was 4.5 (4.7), while sickness

absence remains stable and low at 3.9% (4.0%). The figures are for the last 12

months as at the fourth quarter.

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

for additional information.

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

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 building construction and civil

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

company is 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.

[HUG#1985327]