2nd quarter 2015

Arne Giske President and CEO

We have just put a strong second quarter behind us that was marked by new major contracts, high residential sales and improved profi ts and margins for most of our business areas.

The market situation is generally good in most locations, even though we are seeing a somewhat weaker market in certain regions. Good tendering work and marketing have resulted in a strong order intake, and a record-high order backlog, almost 40% higher than the start of the year. Furthermore, high residential sales will contribute to good performance going forward. We are also strengthening our position and competence through the acquisition of Reinertsen's construction and civil engineering operations in Norway and Lemminkäinen's operations in Uppsala.

Our good long-term safety work is showing clear results now, and this provides inspiration for a continued effort.

HIGHLIGHTS SECOND QUARTER 2015

Revenue NOK 6.2 billion
Profi t before tax NOK 318 million
Order backlog NOK 23.4 billion
Net interest-bearing debt NOK 966 million
Earnings per share NOK 1.7 (IFRS)

390 168 145 225 318 50 100 150 200 250 300 350 400 450

Q2 11 Q2 12 Q2 13 Q2 14 Q2 15

Revenue, NOK billion Profi t before tax, NOK million

BOARD OF DIRECTORS' REPORT FOR Q2 2015

KEY FIGURES1)

NOK million	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
Revenue, segment	6 227	6 039	11 232	11 267	23 863
Profi t before tax, segment	318	225	276	229	967
Segment Construction	159	116	262	203	549
Segment Property Development	100	50	137	127	280
Segment Industrial	81	82	-67	-59	210
Segment Other	-22	-22	-55	-41	-73

Earnings per share, segment	1.9	1.3	1.6	1.3	5.8
Profi t margin, segment (%)	5.1	3.7	2.5	2.0	4.1

Revenue, IFRS 2)	6 339	6 218	11 307	11 525	24 027
EBITDA, IFRS	369	316	436	425	1 383
Profi t before tax, IFRS	288	247	276	287	1 055
Earnings per share, IFRS (NOK) 3)	1.7	1.4	1.6	1.7	6.3

Net interest-bearing debt	966	748	966	748	-274
Total order backlog 4)	23 443	17 608	23 443	17 608	16 792

1) The comments in the report relate to fi gures taken from the segment accounts. Comments to the IFRS accounts are specifi ed in the text.

2) Under IFRS, revenue from residential sales is not recognised until the residential unit is taken over by the buyer. In segment reporting, revenue

is recognised using the formula: estimated fi nal profi t x sales ratio x stage of completion.

3) No dilutive effect.

4) 18-month asphalt orders under the Industrial segment have been omitted from Q1 2015, and previous years' fi gures have been restated.

HIGHLIGHTS Q2 AND H1 2015

The second quarter of the year was marked by a sharp increase in the order backlog, high residential sales and clear profi t growth for the Group. Both the construction and property development operations showed a positive trend. The asphalt production season also started during the quarter, and the profi t for the industrial operations remained stable at a high level.

The profi t was NOK 318 million, an increase of 41% compared with the corresponding period last year. The improved profi t is attributed to increased residential production and project development gains in property development operations, as well as increased profi tability in construction operations.

Revenue for the quarter increased to NOK 6.2 billion, from NOK 6.0 billion for the second quarter of 2014. The growth is connected to increased residential production in Sweden.

A very high order intake for the quarter resulted in a historically high order backlog of NOK 23.4 billion as at 30 June. By comparison, the order backlog was NOK 17.6 billion as at 30 June 2014. This increase is primarily related to the E39 Svegatjørn-Rådal project between Os and Bergen with a contract value of NOK 2.3 billion and the Pyramiden 4 project in Stockholm with a contract value of NOK 1.7 billion.

At the end of the quarter, Veidekke had a net interest-bearing debt of NOK 966 million. This corresponds to an increase in net interest-bearing debt of NOK 1,240 million since the end of last year and NOK 218 million from the second quarter of 2014. Cash fl ow for the quarter was marked by the distribution of a dividend of NOK 468 million, the seasonal start of asphalt operations, as well as increased capital tied up in the civil engineering operations in Norway.

Veidekke entered into a letter of intent with Reinertsen AS during the quarter to acquire the land-based construction and civil engineering enterprise, Reinertsen Entreprenør. It is expected that a fi nal agreement will be signed at the end of August and that the takeover will be effective in September. The profi t was NOK 276 million for the fi rst half of the year, compared with NOK 229 million at the end of the fi rst half of 2014. The increased profi t is primarily attributed to increased profi tability in the Norwegian and Swedish construction operations.

The profi t before tax in accordance with IFRS was NOK 276 million, which is the same as the profi t before tax in the segment accounts. Earnings per share were NOK 1.6, compared with NOK 1.7 for the fi rst half of 2014. Revenue for the fi rst half of the year was NOK 11.2 billion, which is on par with the corresponding period last year.

BUSINESS AREAS CONSTRUCTION OPERATIONS

			At 30.6	At 30.6
NOK million	Q2 2015	Q2 2014	2015	2014	2014
Revenue	4 799	4 747	9 159	9 066	18 502
Profi t before tax	159	116	262	203	549
Profi t margin %	3.3	2.4	2.9	2.2	3.0
Order backlog	22 304	16 487	22 304	16 487	15 810

Revenue reported by Veidekke's construction operations was at the same level as the second quarter last year. Profi t before tax increased by 37% to NOK 159 million, and the increase primarily occurred in the Swedish civil engineering operations. The profi t margin increased to 3.3% during the quarter, from 2.4% in the second quarter of 2014.

The order backlog increased as much as 35% from the second quarter last year to NOK 22.3 billion, which is an historically high level. The order intake was very high in both Norway and Sweden, but a low order intake entailed a further reduction in the order backlog for the Danish operations.

CONSTRUCTION NORWAY

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	2 940	3 033	5 664	5 839	11 878
Profi t before tax	115	104	186	168	423
Profi t margin %	3.9	3.4	3.3	2.9	3.6
Order backlog	14 777	10 427	14 777	10 427	10 437

Revenue from the Norwegian construction operations showed a 3% decline compared with the second quarter of 2014. Revenue from the building construction operations rose, but declined from the civil engineering operations as a result of fewer major transport contracts being signed in 2014.

Profi t before tax was NOK 115 million, up from NOK 104 million in the same period last year. The profi t margin increased to 3.9%, from 3.4%. The improvement in profi ts and margins is a result of a higher volume for Building Construction, as well as higher project margins in both construction and civil engineering operations.

There is still a high level of activity in the construction and civil engineering market in Norway, but with regional variations. The decline in activity in the oil and offshore sector is impacting the affected local markets. The residential market is good, and the market for non-residential buildings is stable. In civil engineering, there are many large projects in the competitive tendering market, and the outlook is positive due to planned public transport infrastructure investments.

The order intake for the quarter was NOK 6.5 billion, compared with NOK 3.6 billion for the second quarter of 2014.There was a substantial order intake in both the construction and civil engineering operations. Major projects awarded in Q2:

E39 Svegatjørn-Rådalen, a section of a new main road between Os and Bergen for the Norwegian Public Roads Administration, contract value NOK 2.3 billion.
E134 Damåsen-Saggrenda at Kongsberg for the Norwegian

Public Roads Administration, contract value NOK 727 million.

• Valløy Remediation Project in Tønsberg, cleanup of refi nery area for Esso Norge. 50/50 joint venture with the Belgian company DEME. Veidekke's share is NOK 234 million.

In addition, the total order intake for the building construction operations was NOK 2.5 billion for the second quarter, with a primary emphasis on residential projects and public service buildings.

The order intake in the second quarter resulted in the highest ever order backlog of NOK 14.8 billion, which is an increase from NOK 10.4 billion from the end of last year and NOK 10.4 at the end of the second quarter of 2014.

Veidekke entered into a letter of intent with Reinertsen AS to acquire the land-based construction and civil engineering enterprise Reinertsen Entreprenør in the second quarter. The enterprise has approximately 220 employees and carries out building projects in Oslo, Trondheim and Bodø, as well as construction contracts throughout the country. The acquisition will strengthen the capacity, expertise and capability of Veidekke Construction. It is expected that a fi nal agreement will be signed at the end of August and that the takeover will be effective in September.

CONSTRUCTION SWEDEN

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	1 482	1 267	2 662	2 360	4 804
Profi t before tax	26	-9	36	-4	19
Profi t margin %	1.8	-0.7	1.4	-0.1	0.4
Order backlog	6 633	4 457	6 633	4 457	4 164

The Swedish construction operations reported revenue of NOK 1.5 billion for the second quarter, which is an increase of 17% compared with the corresponding period last year. There was growth in the building construction operations, while revenue from the civil engineering operations declined due to the low order intake last year.

Profi t before tax increased to NOK 26 million, from NOK -9 million for the same period last year. The profi t margin increased to 1.8%, from -0.7% in the second quarter of last year. The improved profi t was primarily in the civil engineering operations, which had reported losses on a major transport project in the second quarter of 2014. Building construction operations showed increased profi tability throughout, compared with the second quarter of last year.

The positive market trend continued in the second quarter. The demand for housing was high, and the market for private and public non-residential buildings showed improvement. In the civil engineering market, several major projects are expected to materialise in the near future. There are regional and market-related differences in the Swedish construction and civil engineering market, in which the level of activity in the Stockholm area is signifi cantly higher than in other regions.

The order intake for the quarter was NOK 3.6 billion, compared with NOK 1.6 billion for the second quarter of 2014. Major projects awarded in Q2:

• SEB-huset i Stockholm for Fabege. Three offi ce buildings with a total area of 90,000 m2 and 4,400 workplaces. This is a cooperative project with Veidekke Entreprenør AS, and the total contract value is NOK 1.7 billion. The share of the Swedish operations amounts to NOK 1.3 billion, while the share of the Norwegian operations amounts to NOK 338 million.

• Skansen 18 in Stockholm. Remodelling of a hotel and retail outlets for Stena Fastigheter, contract value NOK 330 million.

• Samhällsbyggnad Chalmers in Gothenburg. Construction of a technical college for Akademiska Hus, contract value NOK 262 million.

At the end of the quarter, the operations had an order backlog of NOK 6.6 billion, compared with NOK 4.2 billion at the end of last year and NOK 4.5 billion for the corresponding quarter last year.

Veidekke entered into a letter of intent with Rekab Entreprenad AB in the second quarter to take over Rekab's construction operations in Uppsala with around 50 employees. It is expected that the fi nal agreement will be signed by the end of September.

CONSTRUCTION DENMARK

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	377	447	832	867	1 820
Profi t before tax	17	22	39	39	108
Profi t margin %	4.6	4.8	4.7	4.4	5.9
Order backlog	894	1 603	894	1 603	1 209

Revenue from Veidekke's Danish construction operations, Hoffmann A/S, amounted to NOK 377 million in the second quarter, compared with NOK 447 million in the second quarter of 2014. In local currency, the decline was 19%, which is attributed to the low order intake last year.

Profi t before tax declined to NOK 17 million, from NOK 22 million for the same quarter last year. The profi t margin was 4.6%, compared with 4.8% for the second quarter of 2014. The decline in profi t is attributed to a lower level of activity.

The construction and civil engineering market in Denmark is still challenging, but the increasing level of activity in the Copenhagen region, Århus and Ålborg is contributing to a more positive outlook.

The order intake for the quarter was NOK 0.2 billion, compared with NOK 0.4 billion for the second quarter of 2014. At the end of the quarter, the operations had an order backlog of NOK 0.9 billion, down from NOK 1.2 billion at year-end and from NOK 1.6 billion one year ago. Some of the major non-residential building projects have been concluded, and the operations have not yet succeeded in replacing them with new projects of a corresponding size. The lack of major new contracts that are ready for construction in the order backlog means that the volume is expected to be lower in 2015.

PROPERTY DEVELOPMENT

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	610	422	1 072	1 172	2 276
Profi t before tax	100	50	139	127	280
Number of units under construction 1)	1 356	1 079	1 356	1 079	1 149
Number of units sold 1)	449	235	794	335	770

1) A signifi cant portion of Veidekke's property development operations take place in joint ventures. This particularly applies to the Norwegian operations. The fi gures in the table illustrate Veidekke's share.

There was a high level of activity in both the Norwegian and Swedish residential markets, and the high demand for housing from the fi rst quarter was maintained throughout the second quarter. In Sweden, the level of activity is high in all of Veidekke's markets. In Norway, it is primarily the Oslo area that has very good residential sales, while there are varying levels of activity in other regions. Veidekke sold a total of 554 residential units during the quarter, including jointly-owned projects, with a total value of NOK 2.1 billion. By comparison, 284 residential units were sold in the second quarter of 2014, and 462 residential units were sold in the fi rst quarter of 2015.

Property development operations reported revenue of NOK 610 million for the quarter, compared with NOK 422 million for the second quarter of 2014.

Profi t before tax was NOK 100 million, compared with NOK 50 million for the same quarter last year. Compared to the previous quarters, the profi t performance in both Norway and Sweden is marked by a higher contribution from ongoing residential projects. The profi t for the Norwegian operations also includes a development gain of NOK 37 million from the sale of interests in a residential project.

At the end of the quarter, there were 1,356 units under construction (Veidekke's share), which is an increase from 1,123 units in the previous quarter and from 1,079 units in the second quarter of 2014. Residential production in Sweden increased signifi cantly, while production in Norway showed a weak decline relative to last year's level. The portfolio sales ratio remains stable at a high level, and it was 84% at the end of the quarter.

The Group had a total land bank of 13,900 residential units at the end of the quarter, of which Veidekke's share was 11,100 units.

Capital invested in property development operations totalled NOK 2.8 billion as at 30 June 2015. The return on invested capital ended the quarter at 13.3%, on a 12-month rolling basis, compared with 11.8% at the end of the second quarter last year. The return is adjusted for taxes in associates and joint ventures (see also note 15).

PROPERTY DEVELOPMENT NORWAY

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	138	198	284	409	747
Profi t before tax	63	38	82	71	175
Number of units under
construction 1)	441	456	441	456	399
Number of units sold 1)	107	73	235	115	246

Revenue in the Norwegian property development operations declined to NOK 138 million from NOK 198 million for the same quarter last year. The decline in revenue is attributed to the fact that most of the projects are now carried out in joint venture operations, which do not generate accounting revenues.

Profi t before tax increased to NOK 63 million, from NOK 38 million in the second quarter of 2014. The improved profi t is primarily attributed to the development gain of NOK 37 million from the sale of interests in a residential project.

The sale of new residential units in the second quarter remained at the same high level as in the previous quarter, and 212 residential units were sold in total. By comparison, 118 units were sold in the second quarter of 2014. Veidekke's share of the sales was 107 units, compared with 73 units in the same quarter last year. A total of seven new projects with 390 units were listed for sale in the second quarter (three in Eastern Norway, two in Trondheim, one in Kristiansand and one in Haugesund).

There were 441 residential units under construction (Veidekke's share) at the end of the quarter, which was a slight decline from 456 units in the second quarter of last year. Approximately 50% of the residential units under construction were started this year. The sales ratio for residential units under construction was 65%, compared with 67% in the second quarter of 2014. The strong residential sales resulted in construction starts being brought forward in several projects. The construction of four residential projects with a total of 153 units (Veidekke's share) started this quarter: two in Eastern Norway and two in Trondheim. Residential production is expected to increase somewhat in the future, but this will be limited by the fact that there are few construction projects ready for sale in Oslo and surroundings.

At the end of the quarter, the land bank contained 6,600 residential units, of which Veidekke's share was 4,100 units. The land bank was strengthened through the acquisition of two development sites during the period: Portalen in Lillestrøm (approximately 144 units) and Petter Møllers vei in the Løren district of Oslo (approximately 400 units). Both of these projects are in cooperation with OBOS.

Capital invested amounted to NOK 1.7 billion at the end of the quarter, which is on par with the second quarter of last year. The return on invested capital (12-month rolling) was 14.8%, adjusted for taxes in associates and joint ventures. This is an increase from 12.9% at the end of the second quarter of 2014.

PROPERTY DEVELOPMENT SWEDEN

			At 30.6	At 30.6
NOK million	Q2 2015	Q2 2014	2015	2014	2014
Revenue	473	224	788	763	1 529
Profi t before tax	37	12	57	56	105
Number of units under
construction 1)	915	623	915	623	750
Number of units sold 1)	342	162	559	220	524

1) Veidekke's share.

Property Development Sweden reported revenue of NOK 473 million, compared with NOK 224 million for the second quarter of 2014. Profi t before tax was NOK 37 million, compared with NOK 12 million in the second quarter of 2014. Revenue and earnings growth is attributed to increased residential production.

The demand for new housing in Sweden is still at a high level, and the market is good in all of Veidekke's regions. Sales rose sharply in the second quarter, compared with the preceding quarters. Veidekke sold a total of 342 units in the quarter, compared with 217 units the previous quarter and 164 units in the second quarter last year. Five new projects with a total of 262 units went on sale during the quarter: four in Stockholm and one in Gothenburg.

There were 915 residential units under construction at the end of the quarter, compared with 623 at the end of the second quarter of 2014. The construction of fi ve projects with 273 residential units started during the quarter: three in Gothenburg, one in Skåne and one in Stockholm. The sales ratio for residential units under construction was 93%. As a result of the strong residential sales, more projects will be initiated in the near future, which will further increase residential production in Sweden in 2015.

At the end of the quarter, the land bank contained 7,300 residential units, of which Veidekke's share was 7,000 units. In the second quarter, the land bank in Stockholm was, for example, strengthened: ICA Årsta in cooperation with ICA Fastigheter (approximately 200 units) and Solnavägen (approximately 250 units).

Capital invested totalled NOK 0.9 billion at the end of the quarter, compared with NOK 1.0 billion at the end of the second quarter of last year. The return on invested capital (12-month rolling) was 12.3%, which is an increase from 11.9% at the end of the second quarter of 2014.

INDUSTRIAL

NOK million	Q2 2015	Q2 2014	At 30.6 2015	At 30.6 2014	2014
Revenue	1 132	1 110	1 564	1 513	4 127
Profi t before tax	81	82	-67	-59	210
Profi t before tax 1)	202	203	202	203	210
Order backlog	1 139	1 121	1 139	1 121	982

1) 12-month rolling.

For Industrial operations, this year's production season for asphalt operations started in the second quarter. The quarter was marked by a high level of activity and a good profi t performance. Revenue totalled NOK 1,132 million, compared with NOK 1,110 million for the same quarter last year. Revenue growth was reported by Road Maintenance and by Aggregates. Profi t before tax was NOK 81 million, which is on par with the second quarter of 2014. The profi t margin was 7.2%, compared with 7.4% for the second quarter of 2014.

Revenue from Asphalt was 6% lower than the corresponding period last year, which is attributed to lower production in certain districts. Even though revenue declined somewhat from last year, there is a high level of activity in the asphalt operations. The profi t for the second quarter was somewhat lower than for the corresponding period last year due to the decline in activity.

Road Maintenance reported higher revenue compared with the second quarter of 2014, while profi t was on par with last year. The operations were awarded six new maintenance contracts for the Norwegian Public Roads Administration in the fi rst half of the year, two of which are a continuation of existing contracts. The start-up date for the new contracts is 1 September.

The aggregate operations reported higher revenue and profi t for the quarter.

The market for Industrial's business areas are closely tied to developments in the civil engineering market in general and the transport market in particular. A high level of activity is still expected both in new investments and in maintenance for the next two years, but with regional differences. Among other things, there is a somewhat lower level of activity in the private and municipal markets in Western Norway as a result of a reduced level of activity in the oil-related sector. The Revised National Budget for 2015 shows greater investment in the transport sector, and this will contribute to growth opportunities for Veidekke's industrial operations.

At the end of the second quarter of 2015, the order backlog for the next 18 months was NOK 1,139 million, compared with NOK 1,121 million for the same time last year.

OTHER OPERATIONS

Other operations consist of the unallocated costs associated with the Group's corporate administration and fi nancial management, the Group's ownership role in public–private partnerships (PPP) and the elimination of intra-group profi ts.

The result for the quarter was a loss of NOK -22 million which was at the same level as the same time the previous year. The result includes elimination of accumulated profi t in Construction Norway linked to the PPP projects Jessheim College and Rykkin school. Until further notice Veidekke is the owner of both these PPP projects.

OCCUPATIONAL HEALTH AND SAFETY (OHS)

Veidekke places a great deal of emphasis on safety in all projects and at all construction sites. This work has paid off, and the number of injuries has declined by 20% from 2012 to 2014. This positive trend is also continuing in 2015, and in the fi rst six months the Group reported a decline in the number of injuries to 129, from 201 in the fi rst half of 2014. The number of injuries during the quarter was 55, down from 74 injuries in the fi rst quarter and down from 105 injuries in the second quarter of 2014.

The lost-time injury rate over the last 12 months was 4.1 at the end of the second quarter. This is a clear decline from 5.3 for the previous quarter and from 6.7 for the second quarter of 2014, and it is the lowest lost-time injury rate that has ever been reported.

Systematic and thorough risk assessment from planning to production, basic occupational health and safety training for all and stricter requirements on the use of safety equipment are measures that have contributed to this positive trend.

LTI rate 1)
12-month rolling	Q2 2015	Q1 2015	Q2 2014
Norway	3.2	4.2	5.9
Sweden	9.8	11.6	12.2
Denmark	2.3	4.8	2.6
Veidekke	4.1	5.3	6.7

1) Lost-time injuries per million hours worked, own employees.

LTI per million hours worked, own employees:

Sickness absence for all employees is at a stable, low level, and it was 4.2% at the end of the second quarter.

	Sickness absence, %
--	---------------------	--

12-month rolling	Q2 2015	Q1 2015	Q2 2014
Norway	4.5	4.5	4.4
Sweden	3.8	3.7	3.4
Denmark	2.1	1.8	1.2
Veidekke	4.2	4.2	4.2

FINANCIAL SITUATION

The net interest-bearing debt at the end of the quarter was NOK 966 million, entailing an increase in net interest-bearing debt of NOK 725 million from last quarter and NOK 1,240 million from the beginning of the year. Cash fl ow during the quarter was marked by dividend distribution of NOK 468 million, start-up of seasonal operations in Asphalt, and increased receivables related to unclarifi ed fi nal settlements in the Norwegian civil engineering operations.

Veidekke's fi nancial position is regarded as good, and the Group has considerable fi nancial capacity. The Group has a borrowing facility of NOK 3.1 billion. At 30 June 2015 NOK 1.2 billion of this facility had been utilised. In addition to the borrowing facility, Veidekke has outstanding bonds totalling NOK 750 million, due in 2018.

RELATED PARTY TRANSACTIONS

Veidekke has ongoing transactions with related parties as part of its ordinary operations, including contracts for the development of specifi c projects. There were no other signifi cant related party transactions in the second quarter of 2015. Note 33 to the 2014 annual fi nancial statements provides further disclosures on the sizes and types of transactions during the previous year.

SHAREHOLDER INFORMATION

	Ownership
Largest shareholders 30 June 2015	share in %
OBOS BBL	23.0
Folketrygdfondet	9.6
IF Skadeförsäkring AB	7.7
Verdipapirfondet DNB Norge (IV)	2.8
Skandinaviska Enskilda Banken (Nom)	2.3
JP Morgan Chase Bank (Nom)	2.3
MP Pensjon PK	2.2
Must Invest AS	1.9
Swedbank Robur	1.9
Danske Invest Norske Instit. II	1.2
Foreign shareholders	27.3
Employees, total ownership	16.3

A total of 6.3 million Veidekke shares were traded in Q2 2015. Foreign ownership decreased from 27.7% to 27.3% during the quarter. The share price ranged from NOK 83.75 to NOK 99.25, and was NOK 87.50 at 30 June 2015.

RISKS

Veidekke's operations are largely based on the implementation of individual projects. The projects vary greatly in terms of complexity, size, duration and risk, which means that systematic risk management in all parts of the business is of crucial importance. Veidekke conducts a risk analysis as early as in the tendering stage, and continues effi cient and professional risk management throughout the implementation phase. Proper expertise is a critical success factor for good operational effi ciency and project implementation. To ensure that the Group has sound and updated knowledge, Veidekke devotes signifi cant resources to skills development for employees through its internal training centre, The Veidekke School, and continuously works on recruitment initiatives throughout the Group.

As a result of, among other things, demanding contract terms in transport projects, there is, at 30 June 2015, a signifi cant level of disputes in a number of projects where the Norwegian Public Roads Administration is the owner. Positive or negative outcomes of individual disputes may have an effect on earnings.

The residential market is cyclical, and property development earnings are highly related to new project start-ups. To reduce the risk associated with unsold projects, Veidekke will not, as a general principle, initiate new residential projects until a sales ratio of 50% is achieved. Consequently, lower residential sales may delay residential projects. Veidekke is primarily exposed to fi nancial risks associated with fi nancial instruments such as trade receivables, liquidity and interest-bearing liabilities. These risks are classifi ed as credit, market and liquidity risks. For a more detailed description of the company's fi nancial risks, see note 28 in Veidekke's 2014 annual report.

MARKET OUTLOOK

The international economy continues to show signs of recovery. In the Euro zone, activity is increasing, but growth is still low. Key interest rates are close to zero in many countries and are expected to remain low for some time.

NORWAY

Growth in the Norwegian economy is expected to be 1–1.5% in 2015, after 2.2% growth in 2014, and the labour market will be weaker. The decline will be greatest in areas with high exposure to the oil sector. We must at the same time expect a knock-on effect in other parts of the Norwegian economy, and expectations of growth have also been lowered for other parts of the country.

Growth of 2% is expected in the construction and civil engineering market in 2015. The main growth drivers will be the civil engineering market and public non-residential buildings, while new projects for private non-residential and residential buildings are expected to show weaker growth. There are grounds to expect widening regional differences within the segments residential buildings and private non-residential buildings going forward. This is especially visible in the residential market, where sales and prices have seen a signifi cantly weaker development in Rogaland than in the Oslo region.

SWEDEN

GDP growth in Sweden is expected to reach almost 2.5–3% in 2015 and 2016, from 2.3% in 2014. A continued positive trend is expected for the household sector, with lower interest rates and a stronger employment market. The construction and civil engineering market is expected to grow by 8% in 2015, down from 15% in 2014. The residential market will continue to contribute to a strong performance in 2015, even after 21% growth in 2014. We also expect a positive development within non-residential buildings, but the prolonged upswing in public non-residential buildings will probably level off and possibly start to fall towards the beginning of 2016. The civil engineering market increased by 9% in 2014, driven primarily by the private sector, but it will probably show a more moderate, but positive, development in 2015. The start of major infrastructure projects in Stockholm will contribute to a strong market in this region, probably from the autumn of 2015.

DENMARK

With 1.5% GDP growth in the fi rst quarter of 2015, the Danish economy continues to show positive development. The Copenhagen region and some of the other major cities, including Århus and Ålborg, are leading the development, while other parts of the country are still experiencing stagnation.

The construction and civil engineering market is expected to grow 2% in 2015, down from 4% in 2014. Lower government investments in construction and civil engineering projects will be the main reason for lower growth. For the non-residential building segment, preliminary investment fi gures for the winter quarters 2014/2015 show signs of growth (+14%) after a continuous decline since the fi nancial crisis. Based on today's very low level of activity, the market situation will continue to be challenging.

Oslo, 12 August 2015 Board of Veidekke ASA

Martin Mæland Chairman

Per Otto Dyb Gro Bakstad Annika Billström Ann Christin Gjerdseth Hans von Uthmann Deputy chairman

Odd Andre Olsen Inge Ramsdal Arve Fludal

Arne Giske President and CEO

CONSOLIDATED INTERIM FINANCIAL STATEMENT (UNAUDITED)

A. FINANCIAL STATEMENT SECOND QUARTER

B. BUSINESS SEGMENTS

C. STATEMENT OF CHANGES IN EQUITY

D. NOTES TO THE INTERIM FINANCIAL STATEMENTS

DECLARATION BY THE BOARD OF DIRECTORS AND PRESIDENT & CEO

The Board and CEO have today reviewed and approved the condensed consolidated fi nancial statements and Board of Directors' report for the six-month period ended 30 June 2015. The interim report has been prepared in accordance with IAS 34 Interim Financial Reporing, as adopted by the EU, and the additional disclosure requirements of the Norwegian Securities Trading Act.

To the best of our knowledge, the interim fi nancial sttements give a true and fair view of the Group's assets, liabilities, fi nancial postition and performance, whilde the interim manegement report provides a true and fair overview of important events in the reporting period and their impact on the fi nancial statements, describes the principal risks and uncertainties associated with the next reporting period and describes related party transactions.

Oslo, 12 August 2015 Board of Veidekke ASA

Martin Mæland Chairman

Per Otto Dyb Gro Bakstad Annika Billström Ann Christin Gjerdseth Hans von Uthmann Deputy chairman

Odd Andre Olsen Inge Ramsdal Arve Fludal

Arne Giske President and CEO

A. FINANCIAL ACCOUNTS FOR SECOND QUARTER 2015

					NOK million
INCOME STATEMENT	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
Revenue	6 339	6 218	11 307	11 525	24 027
Operating expenses	-5 992	-5 958	-10 942	-11 176	-22 861
Share of net income from joint ventures	21	56	71	77	217
Operating profi t before depreciation (EBITDA)	369	316	436	425	1 383
Impairment of non-current assets	-	1	-	-	-
Depreciation	-89	-80	-175	-160	-338
Operating profi t (EBIT)	280	237	261	265	1 045
Financial income	22	16	40	39	93
Financial costs	-13	-6	-26	-17	-83
Profi t before tax	288	247	276	287	1 055
Income tax expense	-58	-49	-55	-57	-196
Profi t after tax	231	199	221	230	859
of which non-controlling interests	5	6	6	8	16
Earnings per share (NOK) 1)	1.7	1.4	1.6	1.7	6.3

1) No dillutive effect.

CONSOLIDATED STATEMENT OF COMPREHENSIVE ICOME	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
Profi t after tax	231	199	221	230	859
Revaluation of pensions	-	-	-	-	-151
Net items that will not be reclassifi ed subsequently to profi t or loss	-	-	-	-	-151
Currency translation differences	18	-1	-16	-20	43
Fair value adjustment of fi nancial assets	12	-	6	-5	-10
Net items that may be reclassifi ed subsequently to profi t or loss	30	-	-11	-25	33
Total comprehensive income	260	199	210	205	741
of which non-controlling interests	5	6	6	8	16

STATEMENT OF CASH FLOWS	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
Profi t before tax	288	247	276	287	1 055
Tax paid	-13	-23	-65	-32	-89
Depreciation/impairment	89	79	175	160	338
Other operational items	-507	-137	-880	-16	448
Cash fl ow from operating activities	-143	166	-494	399	1 753
Acquisition/disposal of property, plant and equipment	-75	-158	-160	-230	-402
Other investing activities	-26	-7	-53	-152	-568
Change in interest-bearing receivables	-26	-68	-19	-703	-
Cash fl ow from investing activities	-127	-233	-233	-1 084	-969
Change in interest-bearing liabilities	757	414	1 142	505	-598
Dividend paid	-468	-401	-468	-401	-401
Change other non-current liabilities	4	79	-16	83	-65
Other fi nancial items	-23	-30	-47	-48	-49
Cash fl ow from fi nancing activities	270	62	611	139	-1 114
Change in cash and cash equivalents	1	-5	-116	-546	-330
Cash and cash equivalents, start of period	312	219	435	764	764
Exchange rate adjustment foreign cash balances	4	-1	-1	-5	2
Cash and cash equivalents, end of period	317	213	317	213	435

NET INTEREST-BEARING POSITION	At 30.6.2015	At 30.6.2014	NOK million At 31.12.2014
Cash and cash equivalents	317	213	435

Financial assets (short-term) Interest-bearing assets (long-term)	419 316	650 369	411 305
Interest-bearing liabilities	-2 019	-1 980	-878
Net interest-bearing position	-966	-748	274
Change in net interest-bearing position (from 1 Jan)	-1 240	-353	669
OTHER KEY FIGURES	At 30.6.2015	At 30.6.2014	At 31.12.2014
Order backlog (NOK million)	23 443	17 608	16 792
Equity ratio (%)	18	19	22
Number of employees	6 367	6 616	6 384

STATEMENT OF FINANCIAL POSITION	At 30.6.2015	At 30.6.2014	At 31.12.2014
ASSETS
Non-current assets
Goodwill	799	784	804
Other intangible assets	110	97	110
Deferred tax assets	54	55	54
Land and buildings	540	508	501
Plant and machinery	1 400	1 354	1 389
Investments in joint ventures	1 044	1 013	1 151
Financial assets	474	466	408
Total non-current assets	4 421	4 277	4 416
Current assets
Non-residential and residential projects	2 639	2 598	2 797
Inventories	359	265	255
Trade and other receivables	5 193	3 937	4 068
Financial assets	419	650	412
Cash and cash equivalents	317	213	435
Total current assets	8 928	7 663	7 966
Total assets	13 349	11 940	12 382
EQUITY AND LIABILITIES
Equity
Share capital	67	67	67
Other equity	2 331	2 087	2 606
Non-controlling interests	57	67	71
Total equity	2 454	2 220	2 744
Non-current liabilities
Pensions and deferred tax liabilities	732	560	744
Bonds	750	750	750
Amounts due to credit institutions	76	763	73
Other non-current liabilities	89	136	104
Total non-current liabilities	1 646	2 208	1 671
Current liabilities
Debt to credit institutions	1 194	468	55
Trade payables and warranty provisions	4 029	3 922	3 957
Public duties and taxes payable	892	800	845
Other current liabilities	3 134	2 322	3 109
Total current liabilities	9 248	7 512	7 967
Total equity and liabilities	13 349	11 940	12 382

B. BUSINESS SEGMENTS					NOK million
	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
CONSTRUCTION (specifi cation page 14)
Revenue	4 799	4 747	9 159	9 066	18 502
Operating expenses	-4 608	-4 603	-8 832	-8 807	-17 823
Share of net income from joint ventures	3	1	4	1	2
Depreciation/impairment	-50	-47	-100	-93	-192
Operating profi t (EBIT)	144	100	231	167	489
Net fi nancial items	15	16	31	35	60
Profi t before tax (EBT)	159	116	262	203	549
Total assets, segment	8 215	7 321	8 215	7 321	8 236
PROPERTY (specifi cation page 15)
Revenue	610	422	1 072	1 172	2 276
Operating expenses	-546	-403	-985	-1 099	-2 115
Share of net income from joint ventures	39	26	56	54	134
Depreciation/impairment	-	1	-1	-1	-1
Operating profi t (EBIT)	104	46	142	126	293
Net fi nancial items	-4	4	-5	1	-13
Profi t before tax (EBT)	100	50	137	127	280
Total assets, segment	4 064	3 717	4 064	3 717	4 225
INDUSTRIAL
Revenue	1 132	1 110	1 564	1 513	4 127
Operating expenses	-1 009	-990	-1 557	-1 491	-3 762
Share of net income from joint ventures	4	5	12	2	19
Depreciation/impairment	-39	-33	-75	-67	-145
Operating profi t (EBIT)	87	92	-56	-42	239
Net fi nancial items	-6	-11	-11	-17	-29
Profi t before tax (EBT)	81	82	-67	-59	210
Total assets, segment	2 227	2 055	2 227	2 055	1 706

OTHER OPERATIONS 1)
Revenue	-	-	-	-	2
Operating expenses	-23	-24	-41	-47	-71
Share of net income from joint ventures	3	3	6	7	12
Depreciation/impairment	-	-	-	-	-
Operating profi t (EBIT)	-20	-20	-35	-40	-57
Net fi nancial items	4	8	1	10	-1
Profi t before tax (EBT) 1) Other operations include the Group's net fi nancial items and central unassigned costs.	-16	-13	-34	-30	-59
GROUP ELIMINATIONS
Revenue	-314	-240	-563	-484	-1 044
Operating expenses	308	238	543	480	1 037
Share of net income from joint ventures	-	-	-	-	-
Depreciation/impairment	-	-	-	-	-
Operating profi t (EBIT)	-6	-2	-20	-4	-6
Net fi nancial items		-7	-1	-7	-8
Profi t before tax (EBT)	-6	-9	-21	-11	-14
TOTAL VEIDEKKE GROUP SEGMENT
ACCOUNTS
Revenue	6 227	6 039	11 232	11 267	23 863
Operating expenses	-5 877	-5 781	-10 873	-10 964	-22 734
Share of net income from joint ventures	49	36	77	64	167
Depreciation/impairment	-89	-79	-175	-160	-338
Operating profi t (EBIT)	310	215	261	207	957
Net fi nancial items	9	10	15	22	10
Profi t before tax (EBT)	318	225	276	229	967

Total assets, segment 12 882 11 586 12 871 11 586 11 818

RECONCILIATION OF SEGMENT ACCOUNTS AND FINANCIAL ACCOUNTS
	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
TOTAL VEIDEKKE GROUP SEGMENT ACCOUNTS
Revenue	6 227	6 039	11 232	11 267	23 863
Operating expenses	-5 877	-5 781	-10 873	-10 964	-22 734
Share of net income from joint ventures	49	36	77	64	167
Depreciation/impairment	-89	-79	-175	-160	-338
Operating profi t (EBIT)	310	215	261	207	957
Net fi nancial items	9	10	15	22	10
Profi t before tax (EBT)	318	225	276	229	967
Total assets, segment	12 882	11 586	12 871	11 586	11 818
IFRIC 15 ADJUSTMENTS 1) 2)
Revenue	113	179	75	257	165
Operating expenses	-114	-177	-70	-213	-127
Share of net income from joint ventures	-28	20	-6	13	50
Depreciation/impairment	-	-	-	-	-
Operating profi t (EBIT)	-30	22	-1	58	88
Net fi nancial items	-	-	-	-	-
Profi t before tax (EBT)	-30	22	-1	58	88
Total assets, segment	467	354	467	354	564

1) Under IFRS, income and earnings for completed residential units are not recognised until the date on which the apartment is delivered to the buyer. In the internal monitoring of residential projects, the reporting is on a percentage of completion basis, which means that revenue and expenses are recognised by reference to the project's estimated fi nal profi t x stage of completion x sales rate.

2) See also the accompanying notes, item 2 Accounting policies.

	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
TOTAL VEIDEKKE GROUP
Revenue	6 339	6 218	11 307	11 525	24 027
Operating expenses	-5 992	-5 958	-10 942	-11 176	-22 861
Share of net income from joint ventures	21	56	71	77	217
Depreciation/impairment	-89	-79	-175	-160	-338
Operating profi t (EBIT)	280	237	261	265	1 045
Net fi nancial items	9	10	15	22	10
Profi t before tax (EBT)	288	247	276	287	1 055
Total assets, segment	13 349	11 940	13 338	11 940	12 382

Construction operations by country

					NOK million
	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
CONSTRUCTION NORWAY
Revenue	2 940	3 033	5 664	5 839	11 878
Operating expenses	-2 806	-2 916	-5 437	-5 644	-11 396
Share of net income from joint ventures	-	-	-	-	-
Depreciation/impairment	-32	-31	-64	-62	-125
Operating profi t (EBIT)	102	86	163	133	356
Net fi nancial items	13	18	23	35	67
Profi t before tax (EBT)	115	104	186	168	423
Total assets, segment	5 661	5 052	5 661	5 052	5 511
CONSTRUCTION SWEDEN
Revenue	1 482	1 267	2 662	2 360	4 804
Operating expenses	-1 443	-1 260	-2 602	-2 334	-4 712
Share of net income from joint ventures	3	1	4	1	3
Depreciation/impairment	-16	-14	-32	-27	-60
Operating profi t (EBIT)	26	-5	32	-	35
Net fi nancial items	-	-4	4	-4	-16
Profi t before tax (EBT)	26	-9	36	-4	19
Total assets, segment	1 677	1 481	1 677	1 481	1 648
CONSTRUCTION DENMARK
Revenue	377	447	832	867	1 820
Operating expenses	-359	-427	-793	-830	-1 714
Share of net income from joint ventures	-	-	-	-	-
Depreciation/impairment	-2	-2	-4	-3	-7
Operating profi t (EBIT)	16	19	36	34	98
Net fi nancial items	1	2	3	5	10
Profi t before tax (EBT)	17	22	39	39	108
Total assets, segment	877	788	877	788	1 078
TOTAL CONSTRUCTION
Revenue	4 799	4 747	9 159	9 066	18 502
Operating expenses	-4 608	-4 603	-8 832	-8 807	-17 823
Share of net income from joint ventures	3	1	4	1	2
Depreciation/impairment	-50	-47	-100	-93	-192
Operating profi t (EBIT)	144	100	231	167	489
Net fi nancial items	15	16	31	35	60
Profi t before tax (EBT)	159	116	262	203	549
Total assets, segment	8 215	7 321	8 215	7 321	8 236

Property development by country

					NOK million
	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
PROPERTY DEVELOPMENT NORWAY
Revenue	138	198	284	409	747
Operating expenses	-108	-184	-243	-384	-687
Share of net income from joint ventures	37	22	48	46	126
Depreciation/impairment	-	1	-	-	-1
Operating profi t (EBIT)	67	37	89	70	185
Net fi nancial items	-4	-	-6	1	-10
Profi t before tax (EBT)	63	38	82	71	175
Total assets, segment	1 998	1 985	1 998	1 985	2 197
PROPERTY DEVELOPMENT SWEDEN
Revenue	473	224	788	763	1 529
Operating expenses	-438	-219	-742	-715	-1 428
Share of net income from joint ventures	2	4	7	8	8
Depreciation/impairment	-	-	-	-	-1
Operating profi t (EBIT)	37	8	54	55	108
Net fi nancial items	-	4	1	-	-3
Profi t before tax (EBT)	37	12	55	56	105
Total assets, segment	2 066	1 732	2 066	1 732	2 028
TOTAL PROPERTY DEVELOPMENT
Revenue	610	422	1 072	1 172	2 276
Operating expenses	-546	-403	-985	-1 099	-2 115
Share of net income from joint ventures	39	26	56	54	134
Depreciation/impairment	-	1	-1	-1	-1
Operating profi t (EBIT)	104	46	142	126	293
Net fi nancial items	-4	4	-5	1	-13
Profi t before tax (EBT)	100	50	137	127	280
Total assets, segment	4 064	3 717	4 064	3 717	4 225

C. STATEMENT OF CHANGES IN EQUITY Equity holders of Veidekke ASA

NOK million

	Share capital	Other paid in capital 1)	Currency translation differences	Other retained earnings	Fair value adjust ment 2)	Total	Non controlling interests	Total
Equity at 1 January 2014	67	305	-17	2 134	-84	2 404	62	2 466
Profi t for the period	-	-	-	222	-	222	8	230
Other comprehensive income	-	-	-19	-	-5	-24	-	-25
IFRS 2 - share-based transactions employees	-	-	-	-7	-	-7	-	-7
Options non-controlling interests	-	-	-	-40	-	-40	-	-40
Changes in non-controlling interests	-	-	-	-	-	-	6	6
Dividend	-	-	-	-401	-	-401	-8	-410
Equity at 30 June 2014	67	305	-36	1 907	-89	2 154	67	2 220
Equity at 1 January 2015	67	305	26	2 369	-94	2 673	71	2 744
Profi t for the period	-	-	-	215	-	215	6	221
Other comprehensive income	-	-	-17	-	6	-11	-	-12
IFRS 2 - share-based transactions employees	-	-	-	-11	-	-11	-	-11
Changes in non-controlling interests	-	-	-	-	-	-	-5	-5
Dividend	-	-	-	-468	-	-468	-15	-483
Equity at 30 June 2015	67	305	9	2 105	-88	2 397	57	2 454

1) Paid-in capital over and above nominal value of shares.

2) Change in fair value of available-for-sale shares and hedging instruments that qualify for hedge accounting.

There were no purchases of own shares during 2015.

D. NOTES TO THE FINANCIAL STATEMENTS

1. General information

Veidekke is a Scandinavian construction and property development company headquartered in Oslo. The consolidated accounts for Q2 2015 include Veidekke ASA and its subsidiaries and the Group's investments in associates and joint ventures. At the end of Q2 2015, the Group comprised essentially the same entities as described in the 2014 annual report. Details of business combinations in 2015 can be found in note 8. The interim fi nancial statements are unaudited.

2. Accounting policies

The Group presents its fi nancial reports in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. The quarterly accounts have been prepared in accordance with IAS 34 Interim Financial Reporting and are in line with the Stock Exchange Rules.

The quarterly accounts have been prepared using the same accounting policies as in the annual accounts for 2014.

The interpretation IFRIC 15 deals with the sale of completed residential units and plays a signifi cant role in clarifying the Group's accounting. There are no changes in the accounting treatment of this area compared with previous years. The interpretation clarifi es whether an arrangement comes under the scope of construction contracts (IAS 11) or sale of goods (IAS 18). The interpretation also clarifi es when revenue and profi t from property development projects are recognised in the accounts. This means that revenue and profi t from the sale of completed residential units are recognised when a unit is contractually delivered to the buyer.

In its segment reporting, Veidekke recognises revenue on

a percentage of completion basis, by reference to the project's estimated fi nal outcome, stage of completion and sales rate. This is done to provide as correct a picture as possible of current value creation in the area of residential development and to ensure conformity with the Group's internal management reporting.

The interim fi nancial statements do not include all the disclosures required in a full annual report and should therefore be read in connection with the Group's 2014 annual report, which is available online at veidekke.com/en.

3. Segment reporting

The Group consists of three segments: Construction, Property Development and Industrial. The segment results for Q2 2015 are presented in the table on page 12.

4. Estimates

Construction and property development projects represent a large part of Veidekke's operations. Accounting for project activities is largely based on estimates. Signifi cant judgements used in applying the Group's accounting policies and the main sources of estimate uncertainty at the end of Q2 2015 are unchanged from those in the 2014 annual report.

5. Operations with signifi cant seasonal fl uctuations

The Group's asphalt and aggregates operations, which are reported under the Industrial business area, are subject to seasonal fl uctuations as a result of climatic conditions. Most production takes place between May and October, and the majority of the revenues from operations accrue during these months. However, expenses related to administrative staff, maintenance of production equipment and depreciation are spread over the full year. This means that there will normally be signifi cant fl uctuations in the quarterly accounts for Veidekke's industrial operations.

INDUSTRIAL 1)	12-month rolling at 30.6 2015	12-month rolling at 30.6 2014	2014
Revenue	4 178	3 802	4 127
Profi t before tax	202	203	210
GROUP 1)
Revenue	23 828	23 037	23 863
Profi t before tax	1 014	923	967

1) The fi gures are taken from the segment accounts.

6. Non-currents assets

PROPERTY, PLANT AND EQUIPMENT AND OTHER					NOK million
INTANGIBLE ASSETS	Q2 2015	Q2 2014	At 30.6.2015	At 30.6.2014	2014
Carrying amount at start of period	2 052	1 835	1 999	1 834	1 834
Additions	85	168	192	267	489
Additions from acquisition of operations	-	56	62	56	55
Depreciation and amortisation	-89	-79	-175	-160	-338
Currency translation differences etc.	7	-1	-8	-8	13
Disposals and sales of operations	-4	-22	-20	-31	-53
Carrying amount at end of period	2 050	1 958	2 050	1 958	1 999
Other intangible assets	110	97	110	97	110
Land and buildings	540	508	540	508	501
Plant and machinery	1 400	1 354	1 400	1 354	1 389
Carrying amount at end of period	2 050	1 958	2 050	1 958	1 999

					NOK million
GOODWILL	Q2 2015 Q2 2014		At 30.6.2015	At 30.6.2014	2014
Carrying amount at start of period	792	762	804	775	775
Additions	-	42	-	42	42
Impairment	-	-	-	-	-
Currency translation differences	7	2	-5	-10	9
Disposals	-	-23	-	-23	-23
Carrying amount at end of period	799	784	799	784	804

NOK million

7. Non-residental and residential projects

	At 30.6.2015	At 30.6.2014	2014
Units under construction	732	795	840
Completed units for sale	59	41	64
Residential sites for development	1 821	1 707	1 865
Non-residental projects	27	56	28
Total non-residental and residential projects	2 639	2 598	2 797
Residential projects in joint ventures	898	813	951
Units under construction 1)	1 356	1 079	1 149
Sale rate, units under construction 1)	84 %	74 %	82 %
Unsold, completed units 1)	25	48	41

1) Including Veidekke`s share in joint ventures.

8. Acquisitions, sales of operations

On 1 March 2015 Veidekke Industrial bought the remaining 50% of the aggregates company Martin Haraldstad AS, which is based in Vestfold. The purchase price for 50% of the shares was NOK 34 million. At the acquisition date, the acquired company had bank deposits of NOK 9 million. The acquisition generated an excess value of NOK 18 million, with NOK 25 million of this amount allocated to sites and NOK -7 million to deferred tax. The company reported revenues of NOK 57 million and profi t before tax of NOK 7 million in 2014. As a result of this transaction the previous ownership share has been recognised at fair value. The gain of NOK 8 million has been entered under the item "share of net income from associates and joint ventures".

9. Special items

In the second quarter of 2015 Property Development Norway sold off 50% of a property development project, reducing Veidekke's ownership from 100% to 50%. The transaction has been included in the fi nancial statements for Q2, contributing NOK 84 million to operating revenues and NOK 37 million to profi t before tax.

10. Financial instruments

There were no signifi cant changes relating to fi nancial risk or the Group's use of fi nancial instruments during the period. Further details can be found in the 2014 Annual Report.

Veidekke had NOK 419 million invested in a diversifi ed lowrisk bond fund as at Q2 2015.

11. Dividend

A dividend of NOK 3.5 per share, totalling NOK 468 million, was paid for the 2014 fi nancial year. The dividend was adopted by the Annual General Meeting on 5 May 2015 and was recognised in Q2 2015.

12. Covenants associated with loan agreements

Veidekke has available borrowing facilities of NOK 3.1 billion, which expire on 2 November 2015. At 30 June 2015, unutilised borrowing facilities amounted to NOK 1.9 billion. The following covenants are associated with the loan agreement with DNB Bank ASA:

Net interest-bearing debt divided by EBITDA for the previous four quarters shall not exceed 3.0, with the exception of Q2 and Q3 of each year, when the ratio shall not exceed 3.5. At 30 June 2015, the ratio was 0.7.
The Group's own projects shall not exceed 60% of the Group's book equity. At 30 June 2015, the share of the Group's own projects was 12%.

Defi nitions:

Net interest-bearing debt is the Group's current and non-current interest-bearing liabilities minus the Group's cash and cash equivalents and interest-bearing receivables.

EBITDA is the Group's operating profi t plus depreciation and impairment.

Share of own projects is the value of started, unsold homes and commercial buildings in projects implemented under the control of the borrower or another Group company, and is calculated based on the expected sales price, with a minimum cost price.

13. Events after the reporting date

No events have occurred after the reporting date that would have any signifi cant effect on the submitted accounts.

14. Deferred revenue recognition in accounting for sales of completed homes under IFRIC 15

The interpretation IFRIC 15, Agreements for the Construction of Real Estate, does not allow entities to recognise revenues and profi t from the sale of completed homes until the property has been contractually delivered to the buyer. In its internal monitoring, Veidekke recognises revenue for these projects on a percentage of completion basis by reference to the project's estimated fi nal outcome, stage of completion and sales ratio. Segment reporting follows these principles.

Summary of revenue and profi t before tax recognised in segment reporting:

					NOK million
REVENUE	Q2 2015	Q2 2014	At 30.06.2015	At 30.06.2014	2014
Accumulated revenue from non-delivered projects at start of
period	979	1 009	956	1 103	1 103
+ Revenue from non-delivered projects during the period	335	252	699	651	1 286
- Revenue from delivered projects during the period	-448	-431	-773	-909	-1 451
Net IFRIC 15 adjustments to revenue	-113	-179	-75	-258	-165
+/- Currency translation differences	15	-	-	-15	17
Accumulated revenue from non-delivered projects at end of
period	882	831	882	831	956
PROFIT BEFORE TAX	Q2 2015	Q2 2014	At 31.03.2014	At 31.03.2013	NOK million 2014
Accumulated profi t before tax from non-delivered projects at start of period	186	265	219	304	304
+ Profi t before tax from non-delivered projects during the
period	123	124	215	209	400
- Profi t before tax from delivered projects during the period	-93	-146	-214	-267	-488
Net IFRIC 15 adjustments to profi t before tax	30	-22	1	-58	-88
+/- Currency translation differences	3	-1	-	-4	2
Accumulated profi t before tax from non-delivered projects
at end of period	219	242	219	242	219

At 30 June 2015, revenues of NOK 882 million and profi t before tax of NOK 219 million had accrued on sales of units under construction. These amounts are recognised as revenue in the segment reporting, but under IFRS are not recognised until the homes are handed over.

15. Calculation of return on capital invested in property development, 12-month rolling NOK million

	Average invested capital	Profi t before tax	At 30.6.2015 Financial costs	Taxes in joint ventures	Return	At 30.6.2014 Return
Norway	1 830	187	37	47	14,8 %	12,9 %
Sweden	917	104	9	-	12,3 %	11,9 %
Denmark	169	-	3	-	1,5 %	-1,2 %
Total	2 916	291	49	47	13,3 %	11,8 %

INFORMATION ABOUT THE COMPANY

Veidekke ASA Postboks 505 Skøyen 0214 Oslo

Telephone: +47 21 05 50 00 Website: http://veidekke.com/en E-mail: fi [email protected]

Business registration number: 917103801 Founded: 1936 Head offi ce: Skabos vei 4, Skøyen, 0278 Oslo

The Company's articles of association and corporate governance policy are available at: http://en.veidekke.com/investor-relations/corporate_governance/

The Board of Directors consists of:

Martin Mæland (Chairman) Per Otto Dyb (Deputy Chairman) Gro Bakstad Annika Billström Ann Christin Gjerdseth Hans von Uthmann Odd Andre Olsen, employee representative Inge Ramsdal, employee representative Arve Fludal, employee representative

Executive Management consists of:

Arne Giske President and CEO Dag Andresen Executive Vice President, responsible for construction operations in Norway Per-Ingemar Persson Executive Vice President, responsible for construction operations in Sweden and Denmark Jørgen Wiese Porsmyr Executive Vice President, responsible for Industry and Property Norway. Terje Larsen, CFO and Executive Vice President, responsible for Economy & Finance, IT, Procurement and Strategy Hege Schøyen Dillner Executive Vice President, responsible for HR, HSE, Environment, Communications and Legal

Investor Relations:

Financial Director Jørgen G. Michelet Telephone: +47 21 05 77 22 E-mail: [email protected]

Financial calendar:

Third quarter: 4 November