Veidekke — Earnings Release 2017

Oct 5, 2017

Veidekke ASA: Lower sales - production remains high

Veidekke ASA: Lower sales - production remains high

Veidekke sold 187 residential units in the third quarter of

2017. The number of units in production is 3,251, with a

sales ratio of 86%. Overall, Veidekke's sales of residential

units amounted to NOK 900 million in Q3 2017.

Veidekke has sold fewer residential units in the third

quarter than in the previous two quarters. The low sales in

the quarter are due to a high sales ratio in ongoing

projects, and the fact that sales on only two projects

started in the period.

In the third quarter Veidekke sold 187 residential units at

a value of NOK 900 million, of which Veidekke's share was

NOK 660 million. The number of units in production at the

end of the quarter was 3,251. Veidekkes share of units in

production was 2,505. The corresponding figure for the first

quarter of 2017 was 3,564, of which Veidekke's share was

2,890. The overall sales ratio for projects under

construction is 86%.

"The low sales in the quarter are a result of few units for

sale. The large sales volumes in the preceding quarter

ensures continued high production," says CEO Arne

Giske. "There is still great interest in our projects, but

customers are spending somewhat longer on the buying

process. This is especially noticeable in Oslo, while in

Stockholm and in the other cities in Norway and Sweden the

market situation is more normal," Giske concludes.

Residential unit sales figures for Veidekke as at Q3 2017:

Home Q3 gross (1) Q3 net (2) 12 month

sales 2017 (2016) 2017 (2016) rotating

housing

sales (1)

Norway 72 (165) 46 (84) 538

Sweden 115 (152) 96 (135) 877

Total 187 (317) 142 (219) 1 415

1. Number of sales including joint venture projects

2. Veidekke's share of sales

For more information, please contact:

Director of Business Development at Veidekke Eiendom, Audun

Blegen, tel. +47 959 79 664, audun.blegen@veidekke.no

SVP Finance Jørgen Michelet, tel +47 917 43 856,

jorgen.michelet@veidekke.no

Veidekke is one of Scandinavia's largest construction and

property development companies. The company undertakes all

types of building and civil engineering contracts, develops

residential projects, maintains roads, and produces asphalt

and aggregates. The company is characterised by involvement

and local knowledge. Revenue is NOK 30 billion (2016), and

half of the 7,400 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.

Illustration Grenselunden project south of Oslo":

http://hugin.info/172/R/2139624/819116.jpg