1

SEB NORDIC SEMINAR

CFO Terje Larsen, Veidekke ASACopenhagen, 10 January 2017

VEIDEKKE IN BRIEF

2

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

Solid financial position

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 12m

3

0.4

29

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

RevenueNOK bill.

Share price D Dividends

1936

626778

9671 043

1 318

-

200

400

600

800

1 000

1 200

1 400

1 600

2012* 2013 2014 2015 12m per 3Q16*

NO

K m

illion

REVENUE AND EARNINGS GROWTH

REVENUE PROFIT BEFORE TAX

4

20,5 21,2 23,9 24,528,7

0

5

10

15

20

25

30

35

2012 2013 2014 2015 12m per 3Q16

NO

K bi

llion

* Excl. changes in the pension scheme in Norway in 2012 and 2016

61%

32 %

7%

57%29 %

14%

30 %

70 %

OUR BUSINESS SEGMENTS

5

Revenue*

23.8Units under construction

2 140Revenue*

4.2

* Revenue in NOK billion last 12m, Earnings before tax (EBT) in NOK million last 12m, excl. pension changes. Units under construction is Veidekke’s share** Return on invested capital last 12m. Last 12m is per end Sept. 2016.

Sweden

Denmark

Norway

PROPERTY DEVELOPMENT CONSTRUCTION INDUSTRIAL

3.2% 18.3**% 3.6%Result/ margin/return

Asphalt Aggregates MaintenanceResidential developmentBuilding Construction Civil Engineering

AsphaltRoadMaintenance

Aggregates

EBT NOK 770 mill. EBT NOK 455 mill. EBT NOK 152 mill.

STRONG STRATEGIC LINKAGES AND MULTI-LOCAL LEVERAGE

6

ATTRACTIVE SCANDINAVIAN CONSTRUCTION MARKET

7

Estimated annual market growth 2016 and 2017

+4%

Norway

SwedenDenmark

NOK

900mrd.

Residential

Commercial buildings

Public buildings

CivilEngineering

NOK

900mrd.

+4%

+6%

CONSTRUCTION

REVENUE AND MARGIN* ORDER BACKLOG (NOK BILL.)

8

0%

1%

2%

3%

4%

5%

0

5

10

15

20

25

2012 2013 2014 2015 12m per 3Q16

Revenue (NOK bill.) Margin %

70 %

30 %

*Margin for 2012 and 2016 is adjusted for changes in the pension scheme

0

5

10

15

20

25

30

Q1 13 Q1 14 Q1 15 Q1 16

NO

K bi

ll

Civil Engineering Building Construction

HIGH LEVEL OF ACTIVITY IN BUILDING CONSTRUCTION

9

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

Research facilities at Karolinska Institutet, Huddinge

Hotel, commercial buildings and residential, Vitaminveien, Oslo Diagonale by the Oslo Opera House

… AND IN CIVIL ENGINEERING

10

Water and sewerage installations

Power- and industrial plants Environmental clean-up

Groundwork Tunnel

Avalanche protection

Road constructionRailway

Car parking in mountains

PROPERTY DEVELOPMENT

PROFIT AND RETURN STRONG RESIDENTIAL SALES IN 2015 (NUMBER OF UNITS)

11

0%2%4%6%8%10%12%14%16%18%20%

0

100

200

300

400

500

2012 2013 2014 2015 12m per 3Q16

Profit (NOK mill.) Return (%)

0

500

1 000

1 500

2 000

2012 2013 2014 2015 12mVeidekke's share Joint venture

*2012 and 2016 is adjusted for changes in the pension scheme

+85%

1 800 RESIDENTIAL UNITS SOLD LAST YEAR

12

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

INCREASED RESIDENTIAL PRODUCTION AND A SOLID LAND BANK

NO. OF UNITS UNDER CONSTRUCTION

13

Joint ventureVeidekke’s share

0

500

1 000

1 500

2 000

2 500

3 000

200

5 500

1 500

200

900

1 000

250

3 100

1 200

2 200

INDUSTRIAL

REVENUE AND MARGIN*

14

0%

2%

4%

6%

8%

0

1

2

3

4

5

2012 2013 2014 2015 12m per 3Q16

Revenue (NOK bill.) Margin %

*Adjusted for changes in the pension scheme in 2012 and 2016

58%

13%

29%

NOK 4.2

billion

Asphalt

Aggregates

Road Maintenance

REVENUE DISTRIBUTION LAST 12M

STRONG POSITIONS IN INDUSTRIAL

15

30 asphalt plants28 quarries and plants are covering the most important markets24 road maintenance contractsVeidekke is well positioned for the many planned road projects

Road maintenance contracts

Stavanger

OsloBergen

Kristiansand

ALTA

Tromsø

Bodø

Ålesund

Smaller projects

Large projects1 Asphalt plants

Quarries and plants

1) Projects with expected volume of >100 000 tonnes asphalt (Sources: Veidekke, The Norwegian Public Roads Administration (SVV))

Trondheim

OUR LEGACY

16

Veidekke's roots go back to 1863 in Denmark (H. Hoffmann & Sønner) Veidekke A/S was founded in 1936. Here: Asphalting in the 1930’s

TECHNOLOGY DEVELOPMENT

17

Asphalting at Oslo Fornebu airport, 1973 Asphalting at Oslo Gardermoen airport, 2016

DIGITALISATION IS CHANGING THE CONSTRUCTION INDUSTRY

18

DIGITALISATION IN VEIDEKKE

19

VDC – VIRTUAL DESIGN & CONSTRUCTION

BIM is used in all project phasesWe approach BIM through collaborative planning – Lean construction based methodology“Building twice” – virtual and physical, offer large process and product improvementsCooperation with both Stanford University and Berkeley … and we have probably just started

Customer needs

PROJECT EXECUTION

Design and planning Construction

DIGITALISATION - A PROJECT EXAMPLE

20

Early phaseConceptual design

Analysisand calcu-lation

Project offering

Detailed projectingPre-

fabrication

Logistics

Production

Operations and maint-enance

“PORTALEN”

2,6

4,0

2,5 2,5 2,5 2,8 2,53,0

3,54,0N

OK

per s

hare

Ordinary dividend Share repurchase

SOLID RETURN TO SHAREHOLDERS AND AMBITIOUS GOALS

DIVIDEND AND SHARE REPURCHASE

21

BUSINESS AREA LONG TERM GOAL AVG

2012-14 2015 Last 12m*

Construction Margin (EBT) 5.0 % 2.9 % 3.3 % 3.2 %

Industrial Margin (EBT) 6.5 % 3.8 % 4.7 % 3.6 %

Property Development

Return on invested capital 15.0 % 9.5 % 13.1 % 18.3 %

FINANCIAL GOALS

* Margins on earnings before tax (EBT) lion last 12m is excl. effects from pension changes

SUMMING UP

Strong positions in the growing Scandinavian construction markets

Growth in revenue and earnings

Strong construction order backlog and attractive property development portfolio

Attractive dividend policy and ambitious goals

22

www.veidekke.no