Veidekke

Earnings Release • Nov 8, 2023

Veidekke: Q3 2023 results

Veidekke: Q3 2023 results

Veidekke achieved revenues of NOK 10.4 billion in Q3, and a profit before tax of

NOK 601 million. The group's order book totalled NOK 40.7 billion at quarter

-end. The profit per share was NOK 3.3.

"Veidekke has maintained stable profitability despite increasingly challenging

market conditions, and has improved both revenues and profits in the third

quarter," says Group CEO Jimmy Bengtsson.

"Rising interest rates and ongoing high material costs are increasing hesitancy

among clients and delaying project starts. Although we have a good overview of

activity in the next 12 months, we expect to feel the impact of market

conditions on revenue towards the end of 2024. However, we also see

opportunities in a weaker market, and are prepared to exploit these," says Jimmy

Bengtsson.

"Despite the challenging market conditions, Veidekke is maintaining a strong

order book of high-quality projects. The third-quarter order intake primarily

came from the private sector, and can be attributed to strong, long-term

customer relationships developed by  profitable group entities," says Bengtsson.

"Market conditions vary significantly between our different operational regions

and segments. The market downturn has long been apparent in the Swedish

residential segment, and we will therefore be implementing an extensive

reorganisation in Sweden in Q4 which will reduce the workforce by 60 persons,"

says Bengtsson.

Veidekke achieved revenues of NOK 10.4 billion in Q3 2023, up 9% from NOK 9.6

billion in the third quarter of 2022. The increase is attributable to

Construction Norway, Construction Sweden and Infrastructure Sweden.

Higher activity levels improved the group's nominal result, with the quarterly

profit before tax totalling NOK 601 million, compared to NOK 545 million in the

third quarter of last year. Overall, the profit margin was 5.8%, compared to

5.7% in Q3 2022.

The group's quarterly order intake was NOK 5.0 billion, compared to NOK 7.6

billion in Q3 2022. At quarter-end, the order book amounted to NOK 40.7 billion,

down 2% since the start of the year and down 7% on the same quarter last year.

Approximately 66% of the order book will be converted into revenue in the next

12 months.

Net interest-bearing assets totalled NOK 1.4 billion at the end of Q3 2023,

compared to NOK 2.3 billion last year. Cash flow from operational activities in

the first three quarters of the year amounts to NOK 1.1 billion, up from NOK 502

million in the same period in 2022. Cash flow from investment activity amounted

to NOK -998 million, compared to NOK -399 million last year. The statement of

financial position totalled NOK 18.3 billion at quarter-end, compared to NOK

17.6 billion at the beginning of the year and NOK 17.9 billion one year ago.

The third-quarter LTI (lost time injury) rate was 1.7, compared to 3.7 in the

preceding quarter and 2.4 in Q3 2022. One serious injury occurred during the

third quarter. The quarterly sick leave rate was 5.0%, compared to 4.2% in the

preceding quarter and 4.6% in the third quarter of last year.

This information is subject to a disclosure duty pursuant to section 5-12 of the

Securities Trading Act.

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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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 39 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.