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INVESTOR
PRESENTATION
Veidekke ASA
March 2017
CONTENTS
2
+ Company overview 3
+ Business areas 17
+ Construction 18
+ Property development 24
+ Industrial 32
+ Goals and priorities 37
+ Appendix - Group financials 44
VEIDEKKE IN BRIEF
3
Norway63% of turnover
Sweden 32% of turnover
Denmark 5% of turnover
A leading Scandinavian construction and property
development company
• Largest player in Norway with strong positions in
Sweden and Denmark
Strong revenue and earnings growth
Construction order book up by more than 50 %
over last 24 months
Attractive property development portfolio
80 years without loss
15 % of the shares owned by employees/
management
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4
0.4
30
16
VEIDEKKE – A GROWTH STORY Annual return
to investors
last 30 years:
+ 18%
Annual revenue
growth
last 30 years:
+ 10%
D D D D D D D D D D D D D D DD D D D D D D D D D D D D D D
Revenue
NOK bill.
Share price D Dividends
1936
D
NORWAY DENMARKSWEDEN
Leading and
national
Leading in
selected
segments
Strong
positions in the
largest markets
61%
32%
7%
57%28%
14%
33%
67%
OUR BUSINESS AREAS
6
Revenue*
24.6
EBT*
623Revenue*
4.2
* Revenue in NOK billion 2016, Earnings before tax (EBT) in NOK million 2016, excl. pension changes. EBT Property Dev is tax-adjusted for Norway.
** Return on invested capital last 12m. Last 12m is per end Dec. 2016.
Sweden
Denmark
Norway
PROPERTY DEVELOPMENT CONSTRUCTION INDUSTRIAL
21.4**%Result/
return
Asphalt Aggregates MaintenanceResidential developmentBuilding Construction Civil Engineering
AsphaltMaintenance
Aggregates
EBT NOK 723 mill. EBT NOK 117 mill.
MULTI LOCAL STRENGTH AND SYNERGIES
7
Civil Engineering
Property Development
Industrial
Building Construction
OUR ACTIVITY - NORWAY
8
Public buildingsPublic infrastructure
Residential development and construction
Commercial buildings
100 %
Veidekke’s activity level 2016
Asphalt and road maintenancePrivate infrastructure
OUR ACTIVITY - SWEDEN
9
Public buildingsCommercial buildingsResidential development and construction
Veidekke’s activity level 2016
100 %
Public infrastructure
Private
infrastructure
OUR ACTIVITY - DENMARK
10
Public buildingsCommercial buildings
Veidekke’s activity level 2016
100 %
567776
967 1 043
1 352113
108
0
200
400
600
800
1 000
1 200
1 400
1 600
2012* 2013 2014 2015 2016**
NO
K m
ill.
REVENUE AND EARNINGS
REVENUE PROFIT BEFORE TAX
11
20.5 21.223.9 24.5
30.1
0
5
10
15
20
25
30
2012 2013 2014 2015 2016
NO
K b
ill.
*Positive one-off effect from changes to the pension scheme in Norway
of NOK 113 mill.
**Positive one-off effect from changes to the disability pension scheme in
Norway of NOK 108 mill.
PROFIT BEFORE TAX PER BUSINESS AREA
CONSTRUCTION PROPERTY DEVELOPMENT INDUSTRIAL
12
403 446549
644723
94
81
0
200
400
600
800
2012* 2013 2014 2015 2016**
NO
K m
ill.
*Positive one-off effect from changes to the pension scheme in Norway of NOK 94 mill. and NOK 18 mill.
**Positive one-off effect from changes to the disability pension scheme in Norway of NOK 81 mill., NOK 19 mill. and NOK 4 mill.
173221
280 306
563
4
0
200
400
600
800
2012* 2013 2014 2015 2016**
NO
K m
ill.
158210 190
117
19
0
200
400
600
800
2012* 2013 2014 2015 2016**
NO
K m
ill.
SOLID FINANCIAL POSITION
Capital spending 2016
• Acquisitions NOK 0.2 bill.
• Equipment (PPE) NOK 0.7 bill.
Invested capital
• Property Development NOK 3.1 bill.
Solid long-term financing
• Undrawn bank facility NOK 3.6 bill.
NET INTEREST-BEARING POSITION AT YEAR-END (NOK MILL.)
-1 506
-396
274
-606
0
2012 2013 2014 2015 2016
13
DIVIDEND DEVELOPMENT
DIVIDEND
2.502.75
2.50
3.00
3.50
4.00
4.50
2010 2011 2012 2013 2014 2015 2016*
NO
K p
er
share
14
* Proposal for 2016
2016:
Earnings per share: NOK 6.6 (5.7)
Proposed dividend: NOK 4.5 (4.0)
Dividend pay-out ratio: 68 % (70 %)
Earnings per sharethe segment accounts: NOK 9.3 (6.5)
-
3
6
9
12
15
18
2008 2009 2010 2011 2012 2013 2014 2015 2016
MARKET VALUE AND SHAREHOLDERS
SHAREHOLDERS PER 31 DECEMBER 2016
15
MARKET CAPITALISATION PERIOD-END, NOK BILLION
OBOS BBL* 17.8%
The Government Pension Fund Norway 12.5%
IF Skadeförsäkring 6.9%
Handelsbanken aksjefond 3.4%
Danske Invest 2.1%
Must Invest 2.1%
MP Pensjon PK 2.0%
Swedbank Robur 1.5%
DnB Norge 1.4%
Taiga Invest 1.3%
Employees 14.9%
Foreign holdings 26.7%
*Norway’s largest cooperative building association
15
OCCUPATIONAL HEALTH AND SAFETY
SERIOUS INJURIES* # LTI RATE* SICKNESS ABSENCE*
16
0%
1%
2%
3%
4%
5%
6%
# Veidekke employees, hired staff and sub-contractors *12-month rolling (LTI = Number of lost-time injuries per million hours worked for Veidekke employees)
0
2
4
6
8
10
0
10
20
30
40
BUSINESS AREAS
BUILDING CONSTRUCTION
18
Danish Centre for Particle Therapy, Aarhus Pyramiden, Stockholm
Vrå school, Knivsta at Uppsala
Bragenes Torg, Drammen
Svea Symfoni, Stockholm
Revetal lower secondary school, Vestfold Horten upper secondary school, Vestfold
Research facilities at Karolinska Institutet, Huddinge
Hotel, commercial buildings and residential, Vitaminveien, Oslo Diagonale by the Oslo Opera House
CIVIL ENGINEERING
19
Water and sewerage installations
Power- and industrial plants Environmental clean-up
Groundwork Tunnel
Avalanche protection
Road constructionRailway
Car parking in mountains
CONSTRUCTION
OMSETNING OG MARGIN*
20
0%
1%
2%
3%
4%
5%
0
5
10
15
20
25
30
2012 2013 2014 2015 2016
NO
K b
ill.
Rev. Civil Eng. Rev. Building Constr. Margin (%)
70 %
30 %
*Adjusted for positive one-off effects from changes in the pension scheme in 2012 and 2016
REVENUE AND MARGIN* CONSTRUCTION ORDER BACKLOG BY BUSINESS AREA
0
5
10
15
20
25
30
Q4 13 Q4 14 Q4 15 Q4 16
NO
K b
ill.
Building Construction
Civil Engineering
CONSTRUCTION NORWAY
REVENUE (NOK MILL.) EBT* (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)
21
0
4 000
8 000
12 000
16 000
2013 2014 2015 2016
Building Construction Civil Engineering
0%
1%
2%
3%
4%
5%
0
100
200
300
400
500
600
2013 2014 2015 2016
EBT Margin
0
4 000
8 000
12 000
16 000
2013 2014 2015 2016
Building Construction Civil Engineering
*Adjusted for positive one-off effects from changes in the pension scheme in 2016
CONSTRUCTION SWEDEN
REVENUE* (NOK MILL.) EBT (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)
22
0
2 000
4 000
6 000
8 000
2013 2014 2015 2016
Building Construction Civil Engineering
0%
1%
2%
3%
4%
5%
0
25
50
75
100
125
2013 2014 2015 2016
EBT Margin
0
2 000
4 000
6 000
8 000
2013 2014 2015 2016
Building Construction Civil Engineering
CONSTRUCTION DENMARK
REVENUE* (NOK MILL.) EBT (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)
23
0
500
1 000
1 500
2 000
2 500
2013 2014 2015 2016
Building Construction
0%
2%
4%
6%
8%
0
25
50
75
100
125
2013 2014 2015 2016
EBT Margin
0
500
1 000
1 500
2 000
2 500
2013 2014 2015 2016
Building Construction
PROPERTY DEVELOPMENT
24
Landskrona Strandbyn
Gartnerløkka, OsloBrf Greenroof, Gothenburg Kvartal 33, Lillestrøm Branddörren, Högdalen
Östra Sala Backe, Uppsala
Sørengstranda, Oslo
Kjøita Secret Garden, KristiansandKonsul Lorcks Hage, TrondheimBrf Äppelblom, Gothenburg
Lomma Läge, Skåne
PROPERTY DEVELOPMENT
PROFIT AND RETURN STRONG RESIDENTIAL SALES IN 2015 (NUMBER OF UNITS)
25
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
2012 2013 2014 2015 2016
Profit (NOK mill.) Return (%)
0
500
1 000
1 500
2 000
2012 2013 2014 2015 2016
Veidekke's share Joint venture
*2012 and 2016 is adjusted for changes in the pension scheme
+85%
PROPERTY DEVELOPMENT SWEDEN
NO. OF UNITS SOLD NO. OF UNITS UNDER CONSTRUCTION PROFIT AND RETURN
26
74%
89%
98%
94%
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 -
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016
Joint ventureVeidekke’s share Sales ratio, units under construction
0%
10%
20%
30%
40%
50%
-
100
200
300
400
500
Profit Return (%)
NOK mill.
PROPERTY DEVELOPMENT NORWAY
NO. OF UNITS SOLD NO. OF UNITS UNDER CONSTRUCTION PROFIT AND RETURN
27
71%68%
71%
86%
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 -
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016
0%
5%
10%
15%
20%
25%
-
50
100
150
200
250
2013 2014 2015 2016
Profit Return (%)
NOK mill.
Joint ventureVeidekke’s share Sales ratio, units under construction
Housing development in major regions
STRONG MARKET POSITIONS IN PROPERTY
DEVELOPMENT
28
Land bank of 16 750 units
RESIDENTIAL SALE STARTS
29
470
690
1 100
-
950
-
200
400
600
800
1 000
1 200
2014 2015 2016 2017
No.
of re
sid
en
tia
l un
its, V
eid
ekke
’ssh
are
470 760 1 250 1 050No. of units
incl. JV share
160
530
270
-
550
-
200
400
600
800
1 000
1 200
2014 2015 2016 2017
320 1 000 470 650
RESIDENTIAL PROJECTS IN THE STOCKHOLM AREA
30
112
60
84
210
37
140
80
107
46
12 51
58
155
100290
35
170450
80
390
900
550
65
450
250
120
75
5 200Total 2017-2019:
70
40
RESIDENTIAL PROJECTS IN THE OSLO AREA
31
110
450
360
130
270
310
150
2 350Total 2017-2019:
360
230
INDUSTRIAL
32
Road Maintenance
Market share >15 %
59%
13%
28%
NOK
4.2
billion
Asphalt
Aggregates
Road
Maintenance
REVENUE 2016
Aggregates producer
Market share >10 %
Asphalt contractor
Market share >35 %
GOOD LOCAL PRESENCE
33
Asphalt plants and Quarries &
plants are covering the most
important markets
24 Road maintenance contracts
Veidekke is well positioned for the
many planned road projects
Road maintenance contracts
Stavanger
OsloBergen
Trondheim
Kristiansand
AL
TA
Tromsø
Bodø
Ålesund
Smaller projects
Large projects1 Asphalt plants
Quarries & plants
1) Projects with expected volume of >100 000 tonnes asphalt (Sources: Veidekke, The Norwegian Public Roads Administration (SVV))
INDUSTRIAL
REVENUE AND MARGIN*
34
0%
1%
2%
3%
4%
5%
6%
0
1
2
3
4
5
2012 2013 2014 2015 2016
Revenue (NOK bill.) Margin %
*Adjusted for changes in the pension scheme in 2012 and 2016
QUARTERLY REVENUE, INDUSTRIAL (NOK MILL.)
0
200
400
600
800
1 000
1 200
1 400
1 600
Q1 Q2 Q3 Q42013 2014 2015 2016
SOLID PERFORMANCE IN ASPHALT AND AGGREGATES
PROFIT BEFORE TAX* (NOK MILL.) MARGIN DEVELOPMENT*
35
-200
-100
0
100
200
300
2012 2013 2014 2015 2016
Road Maintenance Aggregates Asphalt
-10%
-5%
0%
5%
10%
15%
2012 2013 2014 2015 2016
Total Asphalt Road Maintenance Aggregates
*Adjusted for positive one-off effects from changes in the pension scheme in 2012 and 2016
LEADING POSITION WITHIN THE ROAD SEGMENT
36
• Good operations and continuous improvements
• Develop positions
• Large infrastructure projects
• Environmental benefits through energy efficiency
• Good operations and continuous improvements
• Develop positions through organic growth and
acquisitions
• Turnaround
• The right contract and project execution
• Large infrastructure projects
Aggregates
Road Maintenance
Asphalt
GOALS AND AMBITIONS
A STRONG SCANDINAVIAN MARKET
38
900billion
0
50
100
150
200
250
300
350
400
450
2000 2002 2004 2006 2008 2010 2012 2014 2016e 2018p
Bill
. 2017-N
OK
Norway Sweden Denmark
INVESTMENTS IN THE CONSTRUCTION SECTOR
Sources: Veidekke, SCB, DST and SSB.
Percentages are average annual growth prognosis for 2017 and 2018
+2 %
p.a.
+2 %
p.a.
+5 %
p.a.
www.trafifverket.se
IMPORTANT TRENDS
39
Larger projects Increased competition
Complex projects Environmental focus
OUR LONG-TERM GOALS
40
5%
CONSTRUCTION INDUSTRIALPROPERTY DEVELOPMENT
15%
MARGIN MARGIN
6,5%
RETURN ON INVESTED
CAPITAL
SERIOUS INJURIES
0
Margin is based on Profit before tax
OCCUPATIONAL
HEALTH AND SAFETY
AMBITIONS FOR FURTHER GROWTH
Exploit strong
positions and good
markets
Selective
acquisitions
Focus on
profitability
41
2030
40
2012 2016 2020
OUR FOCUS
CONSTRUCTION
Selective prioritisation of new
projects
Targeted measures in
businesses with low
profitability
PROPERTY DEVELOPMENT
Take advantage of the good
markets
Further develop the land bank
INDUSTRIAL
Turnaround in Road
Maintenance
Further develop the positions
in Asphalt and Aggregates
42
Asphalt Aggregates MaintenanceBuilding Construction Civil Engineering
OUR INVESTMENT PROPOSITION
Strong positions in the Scandinavian
construction markets
Revenue and profitability growth
Strong order backlog in construction
Attractive property development portfolio
Solid financial position
Dividend proposal of NOK 4.5 for 2016
43
APPENDIX - GROUP FINANCIALS
Sjödalsterrassen, Brandstegen, Huddinge
BUSINESS AREAS
Amounts in NOK million2016* 2015
Revenues Profit Margin Revenues Profit Margin
Construction Norway 15 096 596 4.0% 12 031 493 4.1%
Construction Sweden 7 819 102 1.3% 6 156 56 0.9%
Construction Denmark 1 713 105 6.2% 1 608 96 6.0%
Total Construction 24 629 804 3.3% 19 795 644 3.3%
Property Development Norway 338 149 413 146
Property Development Sweden 2 864 418 1 712 159
Total Property Development 3 202 567 2 126 306
Industrial 4 162 136 3.3% 4 033 190 4.7%
Other -1 856 -47 -1 444 -97
Total Group 30 137 1 460 4.8% 24 509 1 043 4.3%
45
* Positive one-off effect from changes to the disability pension scheme in Norway of NOK 108 mill. attributed to Construction with NOK 81 mill., NOK 19 mill. to
Industrial, NOK 4 mill. to Property Development and NOK 4 mill. to Other.
CHANGES IN PROFIT BEFORE TAX
PROFIT BEFORE TAX*
46
0
200
400
600
800
1 000
1 200
1 400
1 600
2015 Norway Sweden Denmark Norway Sweden Industrial Other 2016
NO
K m
ill.
Construction Property development
1 043 2246 9
-1
259
-73
50
1 352
* One-off effect from changes to the disability pension scheme in Norway in light red
1 460
INCOME STATEMENTFull year
Amounts in NOK million 2016 2015
Revenue 28 613 24 225
Operating expenses -27 284 -23 039
Share of net income from associates and JVs 190 130
Depreciation/impairment -466 -372
Operating profit 1 053 944
Net financial income 38 6
Profit before tax 1 092 950
Income tax expense -170 -167
Profit after tax 922 782
Of which non-controlling interests 35 18
Profit after tax (net) 887 765
Earnings per share (NOK) 6.6 5.7
Profit before tax, segment 1 460 1 043
47
BALANCE SHEET – ASSETSAmounts in NOK million 31.12.2016 31.12.2015
Goodwill and other intangible assets 1 385 1 255
Deferred tax assets 65 65
Land and buildings 560 556
Plant and machinery 1 954 1 689
Investments in associates and joint ventures 1 363 1 134
Financial assets 649 852
Total non-current assets 5 975 5 550
Non-residential and residential projects 4 877 3 355
Inventories 455 310
Trade and other receivables 5 494 5 171
Cash and cash equivalents 644 402
Total current assets 11 470 9 238
Total assets 17 445 14 788
48
BALANCE SHEET – EQUITY AND LIABILITIESAmount in NOK million 31.12.2016 31.12.2015
Equity 3 465 3 218
Pensions and deferred tax liabilities 877 940
Bonds 750 750
Amounts due to credit institutions 212 517
Other non-current liabilities 136 103
Total non-current liabilities 1 975 2 310
Debt to credit institutions 44 43
Trade payables and warranty provisions 5 097 4 626
Public duties and taxes payable 784 759
Other current liabilities 6 080 3 832
Total current liabilities 12 005 9 260
Total equity and liabilities 17 455 14 788
Net interest-bearing debt 0 606
49
STATEMENT OF CASH FLOWS2016 2015
Amounts in NOK million Construction Property
developmentIndustrial Other1) Group Group
Profit before tax 804 567 136 -415 1 092 950
Depreciation/impairment 295 1 167 3 466 372
Other working capital 153 -273 62 380 322 -551
Cash flow from operating activities 1 252 295 365 -32 1 880 771
Acquisition/disposal of PPE -383 -12 -252 -13 -659 -463
Other investing activities -126 20 8 -244 -341 -600
Cash flow from investing activities -509 9 -244 -256 -1 000 -1 063
Dividend paid - - - -535 -535 -468
Other financial items -65 14 -22 334 261 -120
Cash flow from financing activities -65 14 -22 -200 -274 -588
Change in net interest-bearing debt 678 318 99 -489 606 -879
Invested capital at 31.122) 3 115 1 133 4 326 4 472
50
*1) Includes IFRS adjustments and Group eliminations 2) Invested capital is calculated only for the capital-intensive business segments
Property Development and Industrial
FINANCIAL GOALS AND RESULTS
51
BUSINESS AREA LONG TERM GOAL AVG 2012-15 2016
Construction Margin (EBT) 5.0% 2.9% 2.9%
Norway 3.3% 3.4%
Sweden 1.0% 1.3%
Denmark 5.4% 6.2%
Industrial Margin (EBT) 6.5% 3.7% 2.8%
Property developmentReturn on
invested capital15.0% 10.4% 21.4%
Norway 11.9% 12.1%
Sweden 9.4% 45.1%
*2012 and 2016 are adjusted for changes in the pension scheme
INVESTOR RELATIONS
Jørgen Michelet
Senior Vice President Finance
T: +47 917 43 856
