Veidekke

Earnings Release • Feb 9, 2022

Veidekke ASA: Results Q4 2021 and the year 2021

Veidekke ASA: Results Q4 2021 and the year 2021

Veidekke achieved revenues of NOK 10.2 billion in Q4, and a pre-tax profit of

NOK 393 million. The group's order book totalled NOK 38.1 billion at year-end.

The profit per share for 2021 was NOK 7.1, and the board is proposing a dividend

of NOK 7.0 per share for the financial year 2021.

"Veidekke stayed on course in 2021, as confirmed by the fourth-quarter

performance. We improved our profitability throughout the year and delivered a

better result than in 2020 despite somewhat lower revenues. Infrastructure

Norway achieved the greatest improvements both in Q4 and in 2021 as a whole.

Construction Norway also improved profitability year-on-year, while the Danish

operation continued to deliver strong margins," says Group CEO Jimmy Bengtsson.

"With profitability at 3.6% in 2021, up from 3.0% in 2020, Veidekke is well on

the way to achieving its profit-margin targets of 4% in 2022 and 5% in 2025. The

board has underlined this with its proposal to distribute the entire annual

profit," says Bengtsson.

"2021 was a milestone year for Veidekke. Following many years of systematic

investment in injury-reduction in the form of procedures, equipment and

attitudes, we recorded a year without serious injuries. I am particularly

pleased that we reached this milestone in a year when corona restrictions

demanded significant attention and great flexibility on our construction sites.

Injury-prevention remains an ongoing and high priority for us, and we therefore

regard the achievement of zero serious injuries in 2021 not as the finishing

line but rather as a lap time in line with the schedule we adopted a few years

ago," says Jimmy Bengtsson.

Veidekke achieved revenues of NOK 10.2 billion in Q4 2021, compared to NOK 10.3

billion in the fourth quarter of 2020. The fourth-quarter pre-tax profit

totalled NOK 393 million, compared to NOK 391 million in Q4 2020. The

infrastructure operations delivered improved results and profitability. The

performances of the other operations were somewhat weaker year-on-year, with the

decline primarily being attributable to reduced revenues. Overall, the profit

margin was 3.9%, on a par with Q4 2020. All operational areas improved their

profitability compared to last year, with the exception of Construction Sweden,

which experienced a weak quarter.

The group achieved total revenues of NOK 37.6 billion in 2021, compared to NOK

38.1 billion in 2020. Measured in local currency, revenues were nevertheless on

a par with 2020. Construction Sweden and Infrastructure Norway improved their

revenues, while revenues dropped for Construction Norway, Infrastructure Sweden

and the Danish operation. The group's total pre-tax profit in 2021 amounted to

NOK 1 342 million, up from NOK 1 134 million in 2020. The improvement is

attributable to Infrastructure Norway. The 2021 profit margin was 3.6%, up from

3.0% in 2020. With the exception of Construction Sweden, all operational areas

improved their profitability.

Net interest-bearing assets totalled NOK 3.7 billion at the end of Q4 2021,

compared to NOK 3.1 billion at the beginning of the year. Cash flow from

operational activities amounted to NOK 856 million in Q4, and NOK 2.2 billion in

2021 as a whole. The statement of financial position totalled NOK 17.3 billion

at quarter-end, compared to NOK 17.5 billion one year ago.

The group's Q4 order intake was NOK 7.9 billion, compared to NOK 9.8 billion in

Q4 2020. At quarter-end, the order book amounted to NOK 38.1 billion, up from

NOK 37.5 billion in 2020. The order book strengthened in the Other civil

engineering and Maintenance contracts segments, but weakened in other segments.

Around two-thirds of the order book will be converted into revenue in the next

12 months.

The fourth-quarter LTI (lost time injury) rate was 5.4, compared to 5.7 in the

preceding quarter and 4.4 in Q4 2020. There were no serious injuries in 2021.

The sick leave rate was 4.6%, compared to 4.2% in the preceding quarter and 5.5%

in the fourth quarter of last year.

For more information, contact:

Jimmy Bengtsson, CEO, +47?984 70?000

Lars Erik Lund, EVP, +47?413 31 369

Jørgen Wiese Porsmyr, CFO,+47?907 59 058

Veidekke press photos (https://veidekke.fotoware.cloud/fotoweb/archives/5028

-Pressebilder-Veidekke/)

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Securities Trading Act.

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. Its annual turnover is

approximately NOK 38 billion, and half of its 8,000 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.