Veidekke

Earnings Release • Feb 13, 2025

Fourth quarter 2024 Q4

13 February 2025

Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, CFO

Occupational health and safety

Our primary priority

Number of serious injuries

12-month rolling, Veidekke employees, hired staff and sub-contractors

Sickness absence

12-month rolling, Veidekke employees

-2

Highlights Q4 2024

• Revenue NOK 11.5 billion down 5% on Q4 2023
• Profit margin stable at 4.9%
• Solid order book at NOK 41 billion
• EPS NOK 9.3 in 2024, increasing dividends to NOK 9.0 per share from NOK 7.9 previous year

Key financial figures Fourth quarter

Stable order book High quality project portfolio

Order book per segment

Percent

Diverse order intake at NOK 10.5 billion

Order intake Q4 2024

NOK billion

From ambitions to results

Sustainability delivered in projects – with commercial success

Hestnes railway tunnel Civil engineering Norway

Hydrogen asphalt factory Asphalt Norway

Nordborg Resort Hoffmann, Denmark

Ulven head office Construction Norway

Results and financial status Q4

Jørgen Wiese Porsmyr, CFO

Revenues, profits and profit margins

Group and business areas

		Q4 2024			Q4 2023
Amounts in NOK million	Revenues	Profit before tax	Profit margin	Revenues	Profit before tax	Profit margin
Construction Norway	4 215	178	4.2%	4 463	245	5.5%
Infrastructure Norway	2 632	117	4.4%	2 683	132	4.9%
Construction Sweden	2 105	74	3.5%	2 533	18	0.7%
Infrastructure Sweden	1 889	117	6.2%	1 823	99	5.4%
Denmark/Hoffmann	798	109	13.7%	722	118	16.3%
Total business areas	11 639	595	5.1%	12 225	612	5.0%
Other	-150	-37		-91	-9
Group	11 489	558	4.9%	12 134	603	5.0%

Construction Norway

Revenues down 6% on Q4 2023

• Activity drop in southeast Norway primarily, as a consequence of 2023 order intake

Profits declined compared with Q4 2023

• Improved margin in the project portfolio
• Lower volumes and lower capacity utilisation in some units negatively affect profits
• Profit margin stable at 4% throughout 2024

Order book down 4% in the quarter

• 2025 revenue expected to remain at 2024 level

Revenues and profit margin

Profit before tax

Order intake and order book Revenues and order intake

0

1

2

3

4

Infrastructure Norway

Revenues on a par with Q4 2023

• Civil engineering increased revenues
• Asphalt tonnage down 15%

Profits declined compared with Q4 2023

• Adjustments to major construction projects capacity resulted in provisions made for NOK 32 million In severance payments
• Robust project profitability in civil engineering
• Price hike and good product mix compensate for lower asphalt volumes

Order book up 9% from preceding quarter

• Signed Fornebu Line contract valued at NOK 1.8 billion in Q4

Revenues and profit margin

Q4 23	Q1 24	Q2 24	Q3 24	Q4 24
	Revenues (NOK billion)			Profit margin (%)	Civil engineering (NOK million)

2022 2023 2024 2022 2023 2024 Civil engineering

Order intake and order book Revenues and order intake

Profit before tax Q4

Construction Sweden

Revenues down 18% in local currency, compared with Q4 2023

• Revenues dropped in both Stockholm and Gothenburg

Profits improved compared with Q4 2023

• Solid operations in BRA (Gothenburg), and NOK 71 million profit from project sales
• Goodwill impairment of NOK 37 million related to prefab business

Order book down 3% in Q4

• As in Q3, BRA increased its order book by securing several commercial construction projects
• Total order book measured in local currency was down 11% from the previous year

Revenues and profit margin

Profit before tax

4%

Order intake and order book Revenues and order intake

0

1

2

3

Order book (NOK billion) Order intake (NOK billion) 12mos revenues 12mos order intake

Infrastructure Sweden

Revenues up 3% on Q4 2023 in local currency

• Euromining included from November

Profits increased compared with Q4 2023

• Due partly to improved margins in the project portfolio and partly to the acquisition of Euromining

Stable order book in the quarter

• Up 8% in local currency on the previous year
• Signed contract to a value of NOK 1.0 billion for Stage 1 – Lundbyleden in Gothenburg

Order intake and order book Revenues and order intake

Denmark

Revenues up 9% on Q4 2023 in local currency

Solid profits and robust profitability

• Portfolio has consistently high profitability

Order book increased 3% in the quarter

• Down 5% in local currency from preceding year
• Signed 4-year strategic framework agreement for design-and-build contracts with the Danish Building and Property Agency, with an estimated total contract value of up to NOK 9.5 billion

Profit before tax

Order intake and order book Revenues and order intake

Financial position

Balance sheet

Amounts in NOK million	31 December 2024	31 December 2023
Fixed assets	8 470	7 317
Current assets (excluding cash, cash equivalents and financial investments)	7 375	7 906
Cash, cash equivalents and financial investments	2 959	2 989
Assets	18 804	18 212
Equity	3 357	3 099
Long-term debt	2 804	2 380
Short-term debt	12 644	12 733
Equity and debt	18 804	18 212
Equity ratio	18%	17%
Return on equity (12mos)	46%	41%
Net interest-bearing position	2 620	2 776

Financial position

Highlights Q4 2024

• Operating cash flow of NOK 1.2 billion in Q4
• Settlement for the acquisition of Euromining, NOK 360 million

Highlights YTD 2024

• Net investments down on last year (NOK 796 million vs. NOK 1.4 billion)
  • Mainly related to NOK 640 million acquisition of shares in the Gothenburg subsidiary BRA in 2023
• Paid tax increased compared to 2023 (NOK 427 million vs. NOK 308 million)
• Dividend for 2023 paid out at NOK 7.9/share

Change in net interest-bearing assets

NOK million

Proposed dividend of NOK 9.0 per share for 2024

-

2

4

6

8

10

12

Corresponds to 97% payout ratio

Ordinary dividend

NOK per share

• Earnings per share: NOK 9.3
• Dividend ratio: 97%

Jimmy Bengtsson, Group CEO

Key financial figures for the year 2024 Profit improvement continues

Historical figures for 2020 have been restated to reflect the spin-off of the property development business.

¹Profit before tax 2022 includes a NOK 130 million gain on the sale of a former landfill site owned by Infrastructure Sweden.

19 ² Profit before tax 2023 includes a NOK -110 million loss in Infrastructure Norway, related to the settlement reached in an older dispute involving the civil engineering business.

Performance gradually improved in challenging markets 90 percent of revenue produced profit margin in excess of 4 in 2024

¹Profit before tax 2022 has been restated to reflect a NOK 130 million gain on the sale of a former landfill site owned by Infrastructure Sweden.

20 ² Profit before tax 2023 has been restated to reflect a NOK -110 million loss in Infrastructure Norway related to the settlement reached in an older dispute involving the civil engineering business.

Veidekke going forward

Facsimile from Capital Markets Day 2021

• ∙ Clear profit improvement, despite only moderate revenue growth
• ∙ Approaching the profitability target
• ∙ Payout ratio at almost 100%

Simple tools

• ∙ Clearly stated which projects to go for, and how to execute
• ∙ A customised cost rig
• ∙ Focus on units in need of improvements

Explicit ambition Clear direction forward

• ∙ Macro and market forecasts indicate stabilisation and new growth from 2026
• ∙ Veidekke's improvement measures continue
• ∙ Solid financial position

Summary

Solid performance in a challenging market

• Maintained profit margin despite lower volumes
• Reflects high quality project portfolios

Robust order book

• Construction Norway's revenues expected to stabilise in 2025
• Room for growth in infrastructure businesses

Strong financial position

• Solid cash flow for the year as a whole
• Proposed dividend of NOK 9.0, corresponding to 97% of EPS

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