Veidekke

Earnings Release • Jul 6, 2022

Veidekke: New road maintenance contracts worth NOK 1.1 billion

Veidekke: New road maintenance contracts worth NOK 1.1 billion

In the course of the spring Veidekke has entered into four new contracts for

road maintenance of county roads. The contracts have a duration of five years

plus options for extensions, and an overall contract value of NOK 1.1 billion

excluding VAT.

"We're looking forward to commencing the new contracts in September and to doing

what we can to ensure that road users experience as good and safe driving

conditions as possible on the 11,100 kilometres of roads we take care of. There

is significant competition for these contracts, so we are very pleased with the

outcome of this year's tenders," says Director of Road Maintenance Kjell Otto

Bragstad at Veidekke.

Road maintenance includes routine operational tasks and minor maintenance tasks

on the road network (including pedestrian and cycle paths) to ensure safe and

efficient traffic and maintain the roads to ensure the desired service life. In

practice this means clearing, gritting, salting, tunnels and sign cleaning,

maintaining landscape areas, clearing ditches and drains, cleaning roads and

rest areas and emergency preparedness in the event of accidents and extreme

weather conditions.

"We have won the contracts in the wake of good processes with thorough risk

assessments that provide us with a solid basis to carry out the required work

while also ensuring healthy finances in the business," Bragstad concludes.

The new contracts enter into force from 1 September. At that point Veidekke will

have 22 ongoing road maintenance contracts for national and county roads from

Finnmark in the north to Agder in the south with annual revenues totalling

around NOK 1.5 billion excluding VAT. Overall, this year's award round will mean

that Veidekke's turnover in operation and maintenance will slightly increase.

Client Value Area Duration (and option)

Møre og Romsdal 286 Indre Nordmøre 2022-2027 (1-4 years)

county municipality

Agder county 238 Mandal 2022-2027 (1 year)

municipality

Nordland county 460 Vesterålen 2022-2027 (1- 4 years)

municipality

Troms and Finnmark 121 Loppa - Hasvik 2022-2027 (2 years)

country

municipality

The NOK 286 million contract was included in Veidekke's order backlog for the

first quarter. The others (totalling NOK 819 million) will be included in the

order backlog for the second quarter of 2022.

For further information, please contact:

Kjell Otto Bragstad, Director of Road Maintenance, tel. +47 977 47 097, kjell

-otto.bragstad@veidekke.no

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

helge.dieset@veidekke.no

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking

all types of building and civil engineering assignments, the group also

maintains roads and produces asphalt and aggregates. Veidekke emphasises

stakeholder involvement and local experience. Annual turnover is approx. NOK 38

billion, and around half of its 7,800 employees own shares in the company.

Veidekke is listed on the Oslo Stock Exchange and has posted a profit every year

since its inception in 1936.