in brief 2008

We take Our our climate competence responsibility creates unique seriously projects

RESPONSIBILITYCOMPETENCE

We optimise our projects in cooperation with the customer

FLEXIBILITY well equipped for the future Key Figures

2008 2007 2006 2005 2004 IFRS IFRS IFRS IFRS NGAAP industry construction OPERATIONS A)

Operating revenues 19 395 19 336 16 442 14 579 12 826 NOK million 20 16 20000 Operating profit 796 883 712 592 352 Earnings before tax (EBT) 816 1 181 923 711 383 16000 Net profit for the year 1) 611 990 708 558 263 Backlog of orders, construction 10 564 13 263 12 381 10 902 9 177 12000

8000 property PROFITABILITY

Operating profit margin (%) 2) 4.1 4.6 4.3 4.1 2.7 4000 Gross profit margin (%) 3) 4.2 6.1 5.6 4.9 3.0 18 0 Return on capital invested (%) 4) 28.0 49.3 44.5 36.8 19.1 07060504 08

Operation revenues CAPTIAL ADEQUACY A) Total assets 8 966 8 699 8 311 6 370 5 750 Total equity 5) 2 114 2 286 1 778 1 470 1 638 Equity ratio (%) 6) 23.6 26.3 21.4 23.1 28.5

7) Net interest-bearing position -260 192 -534 -109 -76 NOK million 1200

LIQUIDITY 1000 Liquidity at 31 December A) 354 272 331 345 401 800 Unused borrowing facilities A) 1 273 1 681 1 275 1 628 1 096 Cash ratio 8) - 11.97 4.85 6.28 5.12 600

400 SHARES AND SHAREHOLDERS 200 Market price at 31 December 22.30 50.75 47.40 38.50 20.20 Earnings per share B) 9) 4.5 7.1 5.0 3.9 1.9 0 07060504 08 Dividend per share 2.5 4.0 2.6 2.0 3.6 D) Outstanding shares (average million) 135.2 140.0 142.9 143.0 138.3 Earnings before tax CONTENTS Market price at 31 December C) 2 982 7 056 6 680 5 507 2 890

2 from the President and CEO EMPLOYEES Number of employees in Scandinavia at 31 December 6 244 6 475 6 351 5 598 5 436 4 strength through responsibility NOK million Sickness absence all employees, Norway (%) 5.3 5.2 4.9 4.6 4.9 14000 6 strength through competence Sickness absence all employees, Sweden (%) 2.8 3.3* - - - 12000 8 strength through flexibility Sickness absence all employees, Denmark (%) 2.2 3.3* - - - 10000 10 our human power Lost-time injuries per million hours worked, 8000 12 business areas matrix Scandinavia (injury rate) 4.5 7.0 5.7 9.3 10.8 Wages and social benefits A) 4 125 3 831 3 307 2 930 2 701 6000 14 business areas overview 4000

16 construction 2000 18 property development 0 07060504 08 20 industry 22 largest ongoing building and construction projects Orders-on-hand construction

24 addresses A) Figures in MNOK / B) No dilution effect / C) Adjusted for share split 1:5 May 2007 D) Including extraordinary dividends of NOK 2.50 * Reporting started 2007 Key Figures Highlights in 2008 Challenges in 2009

The negative market development that prevailed There is, naturally, a great deal of uncertainty at- throughout 2008, became more evident by the tached to the effects of the market decline and 2008 2007 2006 2005 2004 financial crisis, the full impact of which was felt financial crisis on the building and construction Veidekke is one of Scandinavia’s largest and most solid contractors and property developers. IFRSIFRSIFRSIFRSNGAAP market in Norway, Sweden and Denmark in times towards the end of the year. Despite increasingly ahead. This not only applies to the general financial Through several decades, the company has developed and delivered major property projects NOK million more difficult market conditions, Veidekke development and the effect of the already im- OPERATIONS A) Definitions of Key Figures 20000 achieved a good result for the year as a whole. plemented, extraordinary fiscal measures – there is within the private sector. Furthermore, we have completed extensive projects in the public Operating revenues 19 395 19 336 16 442 14 579 12 826 This can mainly be attributed to construction also uncertainty as to when the credit and financial Operating profit 796 883 712592 352 16000 1) Net profit for the year: market will recover. sector, within both building and construction. Profit for the year after minority interests operations in Norway, which once again Earnings before tax (EBT) 8161181923 711 383 12000 delivered excellent results. Earnings before tax The housing markets in all the Scandinavian Net profit for the year 1) 611990 708 558 263 2) Operating profit margin: were MNOK 816, as against MNOK 1,181 in countries are weak, with low demand and falling We take our corporate social responsibility seriously, and work continually on developing solu- Operating profit as a percentage of turnover Backlog of orders, construction 10 564 13 263 12 381 10 902 9 177 8000 2007,and turnover totalled BNOK 19.4 as against prices. The decline in the housing market is expected to continue throughout the first half of tions which will contribute to a cleaner environment and safer surroundings for all our stake- 3) Gross profit margin: BNOK 19.3 in 2007. This gave a profit margin of 2009, but there are indications of new growth in the PROFITABILITY 4000 Profit before taxation as a percentage of 4.2 per cent compared with 6.1 per cent in 2007. holders. A competent, flexible and responsible organisation, with vast experience and turnover second half of the year. 2) Operating profit margin (%) 4.1 4.6 4.3 4.1 2.7 0 knowledge within project development and project management, is always ready for business. Gross profit margin (%) 3) 4.2 6.1 5.6 4.9 3.0 07060504 08 4) Return on equity: Veidekke continued to place great emphasis on In view of the uncertainty attached to the duration Profit after taxation as a percentage of average of the economic downturn and financial crisis, it is Return on capital invested (%) 4) 28.0 49.3 44.5 36.8 19.1 the area of health, safety and the environment Operation revenues total equity (HSE) in 2008, and we were therefore pleased to imperative that all of Veidekke’s employees retain Everything we develop, produce and deliver is based on our human and collaborative power. focus on maintaining the best possible financial 5) Total equity: see a significant reduction in the injury rate (lost- CAPTIAL ADEQUACY A) position and freedom of action. Combined with a strong financial position, this makes Veidekke well equipped for meeting new Book equity including minority interests time injuries per million hours worked) compared Total assets 8 966 8 699 8 3116370 5 750 with the previous year. The injury rate ended up It will also be essential to maintain focus on challenges in the years to come. 5) 6) Equity ratio: Total equity 2 1142286 1 778 1 470 1 638 margins rather than volume. This will require NOK million Total equity as a percentage of total assets at at 4.5 in 2008, as against 7. 0 in 2007.Sickness Equity ratio (%) 6) 23.6 26.3 21.4 23.1 28.5 31 December stringent prioritisation in the selection of projects, 1200 absence has shown an increasing tendency in Net interest-bearing position 7) -260 192-534 -109 -76 and places high demands on assessing the risk at- 7) Net interest-bearing position: Norway, whereas both Denmark and Sweden 1000 tached to each project. It will be particularly im- Liquid assets plus interest-bearing receivables saw a decrease in sickness absence compared portant to continue focusing on good operational less short-term interest-bearing liabilities less LIQUIDITY 800 management, and to further develop effective work long-term interest-bearing liabilities with 2007. Liquidity at 31 December A) 354 272 331 345 401 processes through employee involvement. 600 Unused borrowing facilities A) 1 273 1 681 1 275 1 628 1 096 8) Cash ratio: Norway Liquid assets plus unused borrowing facilities For most parts of the Norwegian construction operations, In the long run, it is important that we are capable Cash ratio 8) -11. 97 4.85 6.28 5.12 400 divided by short-term interest-bearing liabilities 2008 became a year of excellent results and considerable of retaining competence and further developing 200 improvements within HSE. This can mainly be ascribed to Veidekke’s culture and value drivers. Veidekke SHARES AND SHAREHOLDERS 9) Earnings per share: a high level of activity and successful utilisation of the continues to maintain its long-term ambitions; to 0 Ordinary profit for the year after minority production resources, as well as the ongoing improvement Market price at 31 December 22.30 50.75 47.40 38.50 20.20 07060504 08 continue being a leading player in Scandinavia, and interests divided by the average number of processes in all entities. Industrial operations returned also be among the most profitable contractors and B) 9) shares outstanding (fully diluted) Earnings per share 4.5 7. 1 5.0 3.9 1. 9 disappointing figures for the year, and this may primarily be property developers in its markets. Earnings before tax Dividend per share 2.5 4.0 2.6 2.0 3.6 D) attributed to the area of road maintenance. There has been Outstanding shares (average million) 135.2 140.0 142.9 143.0 138.3 very little activity within property operations due to the weak housing market, and no new housing projects have been C) Market price at 31 December 2 982 7 056 6 680 5 507 2 890 started up. Sweden EMPLOYEES NOK million 14000 Construction operations in Sweden achieved strong profit Number of employees in Scandinavia at 31 December 6 244 6 475 6 351 5 598 5 436 growth in 2008. Market conditions have been favourable, Sickness absence all employees, Norway (%) 5.3 5.2 4.9 4.6 4.9 12000 particularly within heavy construction. The division has Johnny Kellner Sickness absence all employees, Sweden (%) 2.8 3.3* --- 10000 spent considerable resources on building and further developing a good corporate culture, and this has proved Manager, technology and Ole Morten Okkenhaug To rgeir Wiig Sickness absence all employees, Denmark (%) 2.2 3.3* --- 8000 to be a sound basis for profitability. The Swedish Property the environment Site Manager Project Manager Lost-time injuries per million hours worked, Financial Calendar 2009 6000 Division, Veidekke Bostad, had a high sales rate (94 per Scandinavia (injury rate) 4.5 7. 05.7 9.3 10.8 cent) in 2008. Towards the end of the year, however, the RESPONSIBILITY COMPETENCE FLEXIBILITY 4000 effects of the economic downturn became evident, and Publication dates for interim reports: Wages and social benefits A) 4 1253831 3 307 2 930 2 701 First quarter: 8 May 2000 housing sales declined. Second quarter: 13 August 0 4 6 8 07060504 08 Denmark Third quarter: 5 November For the last two years, construction operations in Denmark Orders-on-hand construction have reflected a highly demanding market. In 2008, the The Annual General Meeting will be held on 7 May. operations were consolidated and organisational adjust- The shares will be quoted ex-dividend on 8 May. ments and capacity reductions were made. As a result of Dividend will be distributed to shareholders on 20 May. A) Figures in MNOK / B) No dilution effect / C) Adjusted for share split 1:5 May 2007 this process, the division was able to show good profit D) Including extraordinary dividends of NOK 2.50 growth. There has been little activity within property * Reporting started 2007 development in 2008. Terje R. Venold, President and CEO thriving in the face of adversity.

Our employees are our foremost and most important resource. This is a relatively new business area in Norway, ees when it comes to maintaining focus on which during the first years of operation, has margins and risk.They also believe that it is a The power of our employees – human power based on enthusiasm, shown weak profitability. We therefore found it key factor for building loyalty to the company’s expedient to make an allocation for future loss, aims and ambitions. competence and experience – is what enables Veidekke to deliver what and have placed focus on implementing our customers and surroundings expect every day. And it is through required change processes for future improve- The road ahead + At the time of writing, we are unquestionably ment of productivity and profitability. In the Annual Report for 2007,I wrote that na- human power and the power of collaboration that we in a situation where uncertainty is affecting most tional and international financial markets were aspects of our business, and where it is hardly Well prepared characterised by uncertainty, and that this would will meet the challenges we are now faced with. possible for anyone to foresee the future. In The fact that we started preparing for a weaker affect our operations in the times ahead. I do not view of this, we are happy to look back on 2008, market at an early stage, combined with sound wish to portray this as a shrewd prediction, my which not only turned out to be a good year operational management in 2008, means that intention is merely to yet again underline the im- profit-wise, but which was also a year where we are ready to face the increased uncertainty. portance of being aware of this, in order to be as Veidekke managed to put in place the Scandi- We have a strong financial position and are prac- well prepared as possible. As the situation now navian organisation of motivated and competent tically debt-free at the start of the year. We have seems to be a lot worse than most people be- employees who will carry the company forward. considerable flexibility as regards costs, and this lieved, there is not much else to do but look is an important prerequisite for maintaining a after one’s own interests in the best possible An important year high level of productivity in every project. manner. As early as the second half of 2007, we saw clear signs of a change in the market framework Low short-term risk, great long-term In the short term, this means retaining focus on conditions, through considerably slower housing opportunities the customer and good operational manage- sales in Denmark and subsequently also in Veidekke is a company with extensive experi- ment, maintaining the best possible freedom Norway. At the beginning of 2008, we had ence and a history of strong results. We have of action, further developing effective work therefore already started preparations for meet- operated for 73 years without loss, we are processes, handling uncertainty issues and exer- ing a weakened market, even though prospects among the most profitable contractors and prop- cising good leadership.This is, in reality, what for most of our areas of activity were bright. erty developers in Scandinavia, and we have a we always do, but it has become even more im- stable and experienced management team and portant in these times of increased unpre- The falling housing market throughout all of a low employee turnover rate. We have been dictability. In a longer perspective, we will place 2008, also led to the cancellation of housing through difficult times before, and therefore emphasis on securing Group competence, fur- projects from the order backlog for construction know that the way forward is paved with low ther developing Veidekke’s corporate culture and operations. However, this was partly compen- risk in a short-term perspective, and positive value drivers, and making the most of the oppor- sated by increased activity within infrastructure opportunities in a somewhat longer perspective. tunities accompanying the uncertainty. Because projects, and for most of 2008, also by a Our value drivers are close interaction with the we know that difficult times and uncertainty favourable market for public and private non-resi- customer, employee involvement, a decen- also bring about many opportunities. Historically, dential buildings. Combined with a continuous tralised organisation and good project manage- we have seen that many of the best invest- improvement process in all the construction en- ment – value drivers that shall carry us forward. ments are made when the market is tough. tities, this led to an excellent 2008 result for con- struction operations, especially in Norway. Employee ownership and involvement I will be careful not to appear too optimistic in The employees’ ownership in the company has light of the challenges we are facing, but I am In Veidekke’s Industry Division, asphalt opera- been one of Veidekke’s most important criteria confident that we are in the best possible posi- tions achieved a higher profit than the previous for success, and is the main driving force in in- tion to get through the difficult times ahead. year, even though public budgets did not cover volving employees and creating true commit- Never before has our industry received more at- full production all through the autumn due to ment to the organisation.Today, nearly 50 per tention from the authorities, through, among high oil prices.The area of crushed stone and cent of Veidekke’s employees own approx. 18 other things, large investments in infrastructure gravel also achieved good profitability, and re- per cent of the company. This is a unique situa- and public building projects. And with Veidekke’s cycling operations are showing stable growth. tion. According to investors and financial ana- solid and competent organisation we have all The year was not equally positive for operation lysts, co-ownership is essential for ensuring the the more reason for thinking and acting offen- and maintenance of national and county roads. commitment and understanding of the employ- sively.

+ + Veidekke in brief 2008 +++ 3 + strength through responsibility.

The reduction in annual CO emissions when + The building industry has a special responsibility A special responsibility TheTe llHus concept 2 when it comes to handling the environmental and cli- Through its extensive operations in Scandinavia, Vei- Kellner has for many years worked on developing low- using aTellHus building instead of an ordinary 1. 5 building.This corresponds to the amount of mate-related challenges faced by the world today. We dekke has a special responsibility for finding solutions energy housing as a good alternative to today’s and CO emitted by a car driven 10,000 km. know that a large share of the total energy consump- which will reduce the use of energy at building sites, future building regulations and requirements. Vei- tonnes 2 tion in Scandinavia can be related to the building and and which will enable us to provide low-energy hous- dekke’sTellHus concept combines the use of district Rotating heat exchanger with 80 % use of houses, non-residential buildings and public ing. One possible solution for cutting back the energy heating or equivalent heat sources, with heat recov- temperature efficiency. buildings. Veidekke is convinced that the answer to consumption in dwellings is to introduce strict insula- ery, energy-efficient windows, effective insulation and the challenges lies in innovation and the development tion requirements in order to minimise heat loss. controlled power consumption. – According to our cal- Low-energy lamps. of new, socio-economic and sustainable solutions Johnny Kellner does not believe this is the way for- culations, these measures will reduce the energy which will contribute to reducing energy consump- ward. – A one-sided focus on minimising heat loss consumption by approx. 25 per cent, and CO emis- 2 Energy-saving water taps. tion, and thereby CO emissions. through building housing with extreme insulation ca- sions with all of 50 per cent in relation to the new 2 pacities, will lead to a considerable increase in building building requirements. Our calculations show that the CO knows no borders.This makes the climate and costs. We do not believe this is the way to go. We costs of building aTellHus building is only marginally 2 environmental challenges a global problem. In other need to find solutions which are socio-economically higher than those of building according to today’s words, there is no point in reducing emissions in the sound, and which cover all considerations and require- standards, a mere 1. 5 per cent. And these costs will Scandinavian countries alone. We must also reduce ments relating to project economy, private economy quickly be recovered through energy cost savings. In emissions in Europe and the rest of the world. How and environmental economy. There is no point in other words, it is possible to save both costs and the can we at Veidekke contribute to this? building dwellings which do not accommodate all environment by buildingTellHus housing. these considerations.

Reducing energy consumption Veidekke is planning to put the firstTellHus dwellings District heating using 70 % renewable energy. Johnny Kellner is responsible for technology and envi- up for sale in Stockholm during spring 2009.TheTell- ronmental matters at Veidekke Sverige AB, and has Hus concept has now been extended to include of- White goods of best energy class. worked with energy and environmental issues since fice buildings and renovation of older buildings. the early 80s. He thinks the answer to the climate problems is to develop solutions that will reduce our Well insulated walls, 0.18W/m2K. own energy consumption, particularly in housing. – If we reduce our own power consumption, we will be save costs able to export more environment-friendly energy to Energy-effective windows, Display showing hot 1.0 W/m2K. water and energy Europe. Hydropower produced in Norway may be re- consumption. Central garded as pure energy, compared with the energy standby switch-off. produced at the coal-driven power plants which still dominate in Europe and large parts of the world. By replacing climate hostile sources of energy such as and the coal, with pure energy sources, CO emissions can 2 be significantly reduced. + TellHus is the name of Veidekke’s climate-smart Reducing CO emissions is an aim in itself, as a step dwellings which save both costs and the environment. 2 in the process of reducing global warming. But by cut- + A TellHus building reduces the energy consumption ting back on our energy use, we will also contribute to environment. considerably, and generates only half as much CO as 2 a more sustainable society. In 2008, the world’s popu- an ordinary building. lation consumed an average of 1. 4 times more re- Veidekke shall meet the sources from the Earth than is sustainable.This means we are in the process of draining the Earth of climate challenge with more energy than it is able to regenerate. innovation and development of new technology.

4 +++ Veidekke in brief 2008 + + + strength through competence.

+ Even though Kjøsnesfjorden so far is the tain, inside the mountain and under water. The Improvement meetings and involvement Facts about Kjøsnesfjorden largest power plant project ever to be developed great distances and differences in altitude make in planning + 21.5 km of tunnels with cross sections from 16 to 37 m2 and built by Veidekke, it is not among the largest logistics and transport a major challenge. Kjøsnesfjorden power plant is not only a unique + 13 stream intakes supplying the dams and power plant with water power plants in Norway. It is, however, one of the development project. It is also a pilot project for + 3 dams supplying the power plant with water most challenging projects in Norwegian power Power for 17,000 households the employee programmes We at Veidekke and + 800 altitude metres from dam system to turbine plant development. The actual power station including the turbine has Involvement in planning. – Throughout the entire + Water pressure of 80 kg/cm2 been placed inside the mountain, approx. 800 alti- project we have held improvement meetings and + Turbine producing 247 GWh per year (17, 000 households) Veidekke’s competence in the area of develop- tude metres below the three dams at Trollavatn, practised involvement in planning, says Okken- + Value of goal contract: MNOK 500 ment and construction of power plants is based 1000 metres above sea level. In order to build the haug. In this way, all employees and subcontrac- + Calculated completion time: July 2010 (52 months) on many years of operation and experience. dams, a tunnel first had to be built from the power tors engage in planning activities, the evaluation of + Target completion date: March/April 2010 (48-49 months) Through its many acquisitions, Veidekke has ac- plant up to Trollavatn. This initially served as a con- working methods and choice of equipment. quired knowledge from the very start of power veyor road for the trucks transporting building ma- plant development in Norway at the end of the terials such as asphalt from the town of Førde 50 This work appears to be giving results. By the end 19th century, and has continued to develop this km away.The tunnel ran in a zigzag pattern inside of 2008, a total of 378,000 hours had been knowledge through own operations. Today, Vei- the mountain, with a slope of up to 17 per cent. worked since the start-up, with an injury rate of 0. dekke has a wide competence within its own or- When the power plant is ready for use, the same This means that not a single personal injury has ganisation, and obtains any necessary expertise tunnel will convey water from the mountain and been recorded, a highly unusual situation in such from its cooperating partners. down to the turbine. The 800 altitude metres complex projects. The short-term sickness ab- create a tremendous pressure on the powerful sence was also very low, a mere 2 per cent. In Placing great demands on the developer turbine, which will provide an output of approx. peak periods, a total of 135 people worked on the Developing and building power plants in Norway 84,000 kWh. This represents an annual production project, including administrative personnel and is a long and laborious process. The preparatory of 247 GWh, which corresponds to the electricity subcontractors. work on Kjøsnesfjorden power plant started as consumption of around 17,000 households. early as 1996. The actual construction, which 247 started in April 2006, is expected to be completed GWh in July 2010. Kjøsnesfjorden hydropower plant is situated in Jølster municipality in the county of we build our Sogn og Fjordane. With the glacier Jostedalsbreen in the east and precipitous mountains all around, one would think this would be the perfect place to build a hydropower plant. But the area places great demands on the developer. business on Ole Morten Okkenhaug is the site manager and has the primary responsibility at the Kjøsnesfjor- 17 000 den building site. Okkenhaug has worked with heavy construction in connection with the devel- households opment of power plants since the beginning of the 1980s. Kjøsnesfjorden power plant is one of competence. his biggest and most exciting projects. - The cli- mate and geography present a number of chal- Kjøsnesfjorden power plant is one of lenges. Here we can experience three seasons within a period of 15 minutes, and it is one of the the most challenging power plant areas in Norway which is most prone to landslides projects which have ever been carried and avalanches. We have ongoing activities on out in Norway. several levels at the same time; up on the moun-

6 +++ Veidekke in brief 2008 + + strength through flexibility.

+ The office building Veidekke is putting up for KLP heat recovery units and active sun-shielding. In addi- ing in September 2009, and we are well ahead of Eiendom in the middle ofTrondheim city centre, may tion, 60 energy gauges have been installed in the schedule.This will give us ample time to reach our in many ways be regarded as a reference building, building, making it possible to control the energy aim of handing over a defect-free building, in which both in terms of energy consumption and when it consumption, and the heat generated by the large case, the project will be the next in a row of defect- + The TEK 07 regulations require a maximum comes to new and flexible solutions.Veidekke has servers in the computer room, is recovered and free handovers. In 2008, we delivered four major energy consumption of had to display a high level of flexibility during the used for heating elsewhere. projects with zero defects here inTrondheim, includ- 165 kWh per m2 per year. building of KLP’s new office building inTrondheim. ing blocks of flats and a hotel. In order to meet the requirements for a so-called Involvement and interaction pays off reference building in accordance with Enova’s speci- The project has made use of involvement in planning The requirements and conditions ensuring that the + Veidekke is planning to fications, Veidekke has had to find a new way of at all levels of the organisation.This has already been KLP building may be called a reference building for deliver a building whose working and building. practised for some time within operation and pro- energy consumption are laid down in a cooperation energy consumption does not exceed 150 kWh per m2 duction, where skilled workers are actively involved agreement between Enova and Veidekke.The per year. Cutting energy consumption in half in planning the week’s activities. InTrondheim, sub- agreement specifies a number of measures and A reference building must fulfil energy consumption contractors and cooperating partners have also been parameters which have to be fulfilled. Veidekke requirements that are 10 per cent lower than those engaged in the planning process. – We clearly see must be able to document that the measures of the newTEK 07 regulations, which require a maxi- the benefits of this practice, both in the quality of the have been implemented, and that the energy mum energy consumption of 165 kWh per m2 per building work, and when it comes to progress and consumption will not exceed 150 kWh, in order year. Veidekke is planning to deliver a building whose cost control. KLP Eiendom, which is one of Nor- to satisfy the requirements in the agreement. If energy consumption does not exceed 150 kWh per way’s largest property owners, sees the involve- this is the case, the project will be eligible for a lump + It should be possible 2 m per year.Today, the average energy use of an ment process as unique in the Nordic countries. sum support payment from Enova of NOK 820,000. to achieve a net energy office building is 288 kWh.Thus, the aim for the KLP According to the project manager, the project is pro- The whole turnkey project from Veidekke is worth requirement of 110 kWh. building nearly entails cutting the energy consump- gressing very well: – We are handing over the build- NOK 215. tion in half.

However, Veidekke’sproject manager,Torgeir Wiig, + The amount of energy believes there is an even greater potential for reduc- actually delivered and ing the energy consumption of the new building: - reference building used may possibly be as According to our calculations, it should be possible low as 87 kWh. to achieve a net energy requirement of 110 kWh. If we also take into account the energy recovered by 050100 150200 kWh the heat pumps we have installed, the amount of energy actually delivered and used may possibly be as low as 87 kWh.This will, however, not be con- for energy firmed until the building has been in use for a while. In addition to complying with the requirements for a reference building, Veidekke has implemented measures and solutions which will further reduce the energy requirement. – By involving all employ- ees in the project and cooperating closely with the consumption. client and external consultants, we have managed to bring out a number of constructive suggestions for Involvement and interaction improvement, says Wiig. Several of the suggested measures have, after due consideration and really pays off when Veidekke thorough calculations, proved to be so good that builds Norway’s most flexible they have been implemented. For example, we have green building. installed super-insulating windows, highly efficient

8 +++ Veidekke in brief 2008 + + BUSINESSOBJECTIVESVISION

ST RA TEGY cus y tom it e un rs a m n m d o c ustomers 2 s h c . em u e it p p h w lo t n y p io e l t e i c e a in r r e v t o s l in v e e m s

o e l

c n

t . 1 value drivers Interaction with our stakeholders

4

n . Our value drivers –professional, honest, enthusiastic and g o i o t ground breaking –give us a solid platform on which to base o a d is the continued development of Veidekke. In addition, by p n H r a o rg maintaining an active dialogue and spirit of openness with R je o ct d our stakeholders, we contribute to even better reputation p m se o a ali s l na tr e management, risk management, corporate culture and ic gem cen l y ent 3. a de ru long-term value creation. e g r m u e rs p id id e l eli ins ld oy ne o e s eh es ar sh

Value-creating partnership + 12+ + 3 + 4

+ In Veidekke, we believe that the total qual- +The value of a construction company + In our experience, as much as 75 per cent +The execution of a project is a complex MERS ity of a project is improved through close depends to a large extent on its employees – of the value created in a building project is process which involves a large number of TO cooperation with the customer. In some parts their competence, motivation and interaction locally based. A tunnel, a bridge or an office players, and to remain in control on all levels of the construction industry, there is a high abilities. A building site is a complex arena building cannot be manufactured centrally requires good leadership on the building site. SUPPLIERS EMPLOYEES level of conflict, due to an often unclear divi- with many unknown factors, and surveys and then transported to the place of use, but CUS Management development it therefore a MANAGEMENT sion of responsibility between client and con- show that up to 30 per cent of the employees’ has to be constructed by an organisation set highly prioritised area in Veidekke, and we are tractor. Close interaction with the customer time is spent waiting. In order to increase up on site. Local market knowledge and good one of today’s leading training companies in improves our conflict resolution abilities, it efficiency, each individual employee must be relationship building capabilities are therefore Professional – Honest – Enthusiastic – Ground breaking provides us with a better foundation for risk able to take responsibility and display initiative. imperative to the profitability of the projects. our industry. In addition, we depend on effec- assessments, and it makes us better qualified We encourage this through employee involve- We promote this through a decentralised re- tive project management tools and good to deliver a product which lives up to the cus- ment in processes such as We at Veidekke, sponsibility and authority structure, in which planning, ensuring that we always have some tomer’s expectations. Under way, Here at Hoffmann and Employee each individual manager has a large degree of capacity in reserve.This way we reduce the Involvement, and by promoting employee freedom to take independent responsibility. risk, improve the margins and increase the We are working systematically to act responsibly, professionally ownership in the company. number of returning customers. and with consideration in all areas of our operations.

10 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 11 business areas. matrix.

BUSINESS AREA DESCRIPTION KEY FIGURES (MNOK) PRIORITY AREAS IN 2008 ACHIEVED IN 2008 PRIORITY AREAS IN 2009

NORWAY Nation-wide building and construction 2008 2007 2006 • Maintain a high margin. • Profit margin kept at same high level as previous year. • Maintain a good profit margin in a demanding market. Constructon operations Operating revenues 10 660 9 855 8 120 • Reduce number of lost-time and other injuries. • Historically low number of lost-time injuries. • Greater involvement of our subcontractors in safety work. Earnings before tax (EBT) 708 643 387 • Implement customer routines in all 27 districts. • Customer routines being implemented in all districts. • Improve customer dialogue and market work. • Introduce ‘Involvement in planning’ learning projects in all • Learning projects being planned in all districts. • Gradually increase use of Involvement in planning. Backlog of orders 6 579 9 030 7 580 27 districts. Number of employees at 31 Dec 3 270 3 296 3 090

Property Mainly development of housing for its own 2008 2007 2006 • Generate profits in a tighter housing market through sales • Low housing sales, no new housing projects started up. • Sell unsold dwellings. account in Norway and to a certain extent in Operating revenues 632 1 389 1 193 of ongoing and new projects. • Completed and handed over 542 dwellings without defects. • Presell and start up projects that are ready for construction. Earnings before tax (EBT) -50 431 312 • Meet the cost challenge by working closely with the • Started up two new non-residential projects covering a total • Exploit our strong financial position for acquisition of promising commercial buildings and special-purpose build- construction division. of 13 000 m2. sites and projects. ings for the public sector.These operations are Capital invested 1 929 1 844 1 537 concentrated around the largest towns. Number of employees at 31 Dec 47 53 47

Industry Nation-wide asphalt, crushed stone and gravel 2008 2007 2006 • Increase profit margins, while watching growth in costs. • Growth in profit within asphalt operations, but increasing • Significantly improve operation and maintenance activities. operations, road maintenance, demolition and Operating revenues 3 293 2 907 2 337 • Improve production through focus on waiting time/stop time. costs caused reduced project margins. • Focus on capital usage. Earnings before tax (EBT) 68 130113 • Continue strategy and improvement processes. • Disappointing results within road maintenance. • Continue improvement work, including sustained efforts to reduce plant contracting, and recycling of industrial • Improvement processes initiated/under implementation. CO emissions. 2 waste. Capital invested 1 260 1 047 815 • Strategy processes implemented in all districts/regions. • Lower frequency of injuries. Number of employees at 31 Dec 1 268 1 2121085

SWEDEN Building and construction operations in regions 2008 2007 2006 • Continue development of corporate culture. • Strong focus on values and culture in 2008. • Continue work on values and culture Construction around Stockholm and Gothenburg and in Operating revenues 2 8012756 1 900 • Introduce employee involvement in all projects and other • Employee involvement implemented in new projects. • Further develop methods and procedures for ensuring employee Earnings before tax (EBT) 53 -4 14 activities. • Common financial management system in place. involvement in projects Skåne. • Further develop management systems. • Employee involvement further developed and procurement • Putting profitability before volume Backlog of orders 2 479 2 222 1 972 • Promote productivity. function strengthened. • Continue developing routines for financial management Number of employees at 31 Dec 999 1 1021080 • Focus on margins in construction operations. • No major loss-making projects in 2008. • Increase business-oriented focus • Increase share of partnering contracts. • Several new partnering contracts in the regions. • Strengthen productivity promotion and increase the share of • Focus on defect-free projects. • Larger share of defect-free projects. defect-free projects • Find suitable companies for takeover. • No acquisitions made in 2008. • Further develop the concept of climate-friendly building • Increase the share of partnering contracts

Property Development of housing projects for own 2008 2007 2006 • Obtain higher expansion rate in housing development in • Larger portfolio of sites both in Skåne and Gothenburg, • Continue focusing on site acquisition through options to purchase. account in the city regions. Operating revenues 720 768730 Skåne and Gothenburg. mainly in the form of options to purchase. • Further develop model houses. Earnings before tax (EBT) 102113 68 • Further develop model houses. • Clear improvement in cost efficiency. • Monitor opportunities for site purchases in view of the financial • Expand collaboration with financial partners. • Major site purchase carried out in cooperation with partners. crisis. Capital invested 415259 537 Number of employees at 31 Dec 64 58 59

DENMARK Nation-wide building and construction 2008 2007 2006 • Consolidate by continuing to focus on earnings rather than • Decreased volumes, greatly improved project contributions, • Obtain a sufficient order backlog without compromising Construction operations. Operating revenues 2 073 2 780 3 005 volume. and notably fewer and smaller write-downs. profitability. Earnings before tax (EBT) 13 -88 51 • Start work on a corporate culture, with focus on shared • A cultural process called “Hoffmann’s spine” is being • Continue the implementation of “Hoffmann’s spine”. attitudes and core values. implemented. • Maintain focus on structured sales and the tender process. Backlog of orders 1 298 1 881 2 750 • Focus on eliminating risk through better procedures and • Selection, tenders and financial reporting is significantly • Increase focus on risk management and financial reporting in the Number of employees at 31 Dec 556 703 938 more focus on tender and follow-up processes. improved. business entities. • Focus on partnering projects where we are chosen for • The number of partnering projects/integrated collaborations • Continue to secure a large share of the order backlog through reasons other than and in addition to price. remains unchanged. partnering/integrated collaboration, for example by strengthening • Continue implementation of internal improvement processes • The improvement process ”Here at Hoffmann” is fully ties with important partners. such as “Here at Hoffmann”. implemented or initiated through pilot projects in all regions.

Property Development of housing projects for own 2008 2007 2006 • Postpone start-up of new projects until market improves. • No projects started up. • Postpone start-up of new projects until market improves. account, concentrated around the city regions. Operating revenues 50 163274 • Continue work of developing the urban area of Christiansberg • Work is progressing on developing the urban area of Earnings before tax (EBT) -33 -1011 (the old vegetable market) in Copenhagen with The Carlyle Christiansberg in Copenhagen. Capital invested 291 243 411 Group. Number of employees at 31 Dec 298

12 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 13 business areas. overview.

+ Veidekke has building and construction operations in + The Property Division is engaged mainly in the devel- Norway, Sweden and Denmark. In 2008, construction opment and sale of housing for Veidekke’s own account, operations had a total turnover MNOK 15,534, and and operations are concentrated around the largest achieved earnings before tax of MNOK 773.8.The cor- towns in Norway, Sweden and Denmark. The operations responding figures for 2007 were MNOK 15,391 and also include development of non-residential buildings, as MNOK 550.6, respectively. Although the effects of the well as special-purpose buildings for the public sector. general economic downturn became increasingly In 2008, the total turnover amounted to MNOK 1,402 as more evident in the course of 2008, the operations against MNOK 2,320 in 2007. Earnings before tax were maintained a high level of activity, and showed good MNOK 19.4, compared with MNOK 534 the previous capacity utilisation.The decline in the housing market year.As early as the last half of 2007, a negative trend was, to a great extent, compensated for by a shift could be seen in the housing markets in Denmark and towards the construction market. Great emphasis is Norway. During 2008, the decline was further intensi- placed on continuous improvement processes by fied, and towards the end of the year, housing sales ensuring the involvement of own employees and sub- dropped in Sweden as well. In times ahead, focus will contractors in the building process.The improvement be directed towards further developing Veidekke’s sub- process has contributed significantly to the good stantial site portfolios, and preparing projects so that page16 construction. result achieved by construction operations in 2008. page18 property. they are ready to be initiated when the market recovers.

A full description of Veidekke’s construction operations A full description of Veidekke’s property development can be found at www.veidekke.com/businessareas can be found at www.veidekke.com/businessareas

+ Veidekke’s Industry Division covers the following business areas: asphalt, crushed stone and gravel, road maintenance and recycling. The operations are well-established in all of Norway, and are also gaining a foothold in Sweden. In 2008, industry ope- rations had a turnover of MNOK 3,293 as against MNOK 2,907 the year before. Earnings before tax were MNOK 68.1, compared with MNOK 130.1 in 2007. The market for road maintenance com- prises operation and maintenance of national and county roads in Norway, and is an interesting business area. Asphalt operations

A full description of Veidekke’s industrial operations achieved a slightly better result for 2008 than for 2007, and main- can be found at www.veidekke.com/businessareas tained its market share. Veidekke is Norway’s second largest supplier of crushed stone and gravel, and the operations achieved growth and good profitability in 2008. Recycling operations have shown some growth in 2008, whereas the profitability was on par page 20 industry. with 2007.

14 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 15 construction.

tions in this building actually constitute around 35 The building work started in April 2007. 14 months per cent of the total costs, and include electrical later, in the summer of 2008, the building was installations, large ventilation and cooling sys- ready for occupancy, and the handing over of the tems, IT installations and advanced communica- building took place on 1 September. Due to its tion equipment. unique construction, the building could not be put up in stages. Instead, the entire building was A central unit of the building is the so-called VPDC raised in one step. In peak periods, Hoffmann had room (Vestas Performance Diagnostics Centre), 150 people working on the building, including both Veidekke’s Danish division, Hoffmann, has built where it is possible to communicate with all the own employees and subcontractors. The work the world’s largest centre for the development windmills installed by the company across the was to be done at a time when the Danish market of wind power technology for Vestas in Århus, world. If one of the windmills is defective, this will was still booming, therefore, getting enough Denmark. The building has 19,000 m2 of floor be spotted by the engineers in Århus. people was often a challenge, especially for the space and accommodates offices, research facili- concrete work. ties and common areas for 600 engineers. It is a The top of a windmill is called a nacelle. A model unique building in terms of shape, façade, content of such a nacelle has been built on a large scale Landing new assignments in times of and use of materials. inside the new Vestas building. Engineers can go recession into the nacelle wearing virtual reality glasses Since then, the market has turned around com- The building has been given a special triangular which enable them to see and study a component pletely, also in Denmark. Despite this, Hoffmann shape, adapted to the site on which it is built. The that has broken, and take measures to correct the Veidekke has managed to land several new build- form also bears resemblance to the vane of a defect. ing assignments. Hoffmann has signed a contract windmill, shaped by three angles of 30, 60 and 90 with Siemens Windpower concerning a project on degrees, with a pointed end. The glass façade of Zero tolerance in every detail Jutland totalling MDKK 100, and is about to draw the building makes it open and transparent, while Vestas is the world’s leading and largest company up a new tender for a smaller technology centre an intelligent at the same time bringing lots of light into the within the development, production and installa- covering 8,000 m2 for Vestas in Denmark. premises. This creates a good indoor environ- tion of windmills, with 25,000 employees in all ment, and thereby also a beneficial working parts of the world. Hoffmann has worked with Vestas has indicated that they are very pleased environment. Vestas for the last six years, during which it has with their new building in Århus. Hoffmann em- delivered seven building projects in Denmark, phasises the positive cooperative relationship with A creative and innovative environment with a contract price of between MDKK 10 and the customer, both before and during the building building of For the client, it was important to create a working 260. Vestas is expanding quickly, also in Denmark, process, as one of the main reasons for the suc- environment which inspires its users, and signals and were struggling with space issues when the cessful result of the project. Another important an innovative way of thinking. People who work building of the development centre in Århus reason is the enormous effort made by all the with creating new and ground-breaking techno- started. Therefore, setting up the new building people who have been involved in the project. logy, need to work in a creative and innovative en- was urgent, but at the same time, there were ex- The project was delivered on budget, and the total vironment. The materials used in the building, a tremely strict requirements for functionality, qual- project price, including some additional work, high quality. combination of natural stone, concrete, wood and ity and finish in the delivered result. The client totalled MDKK 275. glass, contribute to a varied and pleasant atmos- required extreme accuracy and had a zero toler- The world’s largest development phere. Some walls are covered with wood panel- ance for deviations in every detail. This, in turn, ling and textiles in order to soften the acoustics of placed great demands on the individual craftsman. centre for wind power has been the building. built in Århus. An office building for a technologically innovative company necessarily has to contain a great deal of technological equipment. The technical installa-

16 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 17 property development.

Victoriagården consists of five buildings covering quirements, we have used windows with a special a total of almost 12,000 m2 divided into seven sound absorbing effect. These windows are extra floors. Approx. 8,600 m2 have been allocated to thick and well-insulated, and will therefore also 99 high-standard flats, in sizes varying from 50 to reduce heat and energy loss. 200 m2. Each flat has a spacious balcony or an impressive terrace of up to 100 m2. Most of the Most blocks of flats that are built today, use pre- flats are south- or west-facing, with good light fabricated bathroom units, and this is also the case conditions and views. The business premises are in Victoriagården. The main advantage of these located on the ground floor, facing onto the prom- units is that they are manufactured under dry and This modern block of flats, which was developed enade and the river. The offices are located in the controlled conditions. The actual units are cast in and sold by Veidekke Eiendom, and built by building at the very back. moulds, with proper slope to drain, and tiles are Veidekke Entreprenør, is the result of another installed mechanically. The bathroom units are successful turnkey project from Veidekke. Parking lots and store rooms are placed on two hoisted in place up against a shaft containing the Victoriagården stands as a high-quality building, lower ground floors, with lifts going up to the flats. water and drainage pipes to which the bathroom is in terms of façade and functionality, as well as The roof on top of the upper parking level holds a connected. An added benefit of this method of design. Through this project we have created a large recreational yard featuring lawns, trees and building bathrooms is increased efficiency in the good living and business environment right in the bushes, as well as footpaths and play grounds. building site. centre of Sandvika in Bærum. Also, we have used The area is for residents only, and it is situated on a number of modern solutions to provide a high such a high level that both vision and access is Few defects ensures high customer satisfaction level of living quality and comfort. restricted from the surrounding streets. This The sale of flats started in the autumn of 2006, and means that the residents are shielded from view in the course of the autumn, nearly all the flats Revitalised town centre and noise, and also protected against unautho- were sold. Only a few flats remain unsold or are up The municipality of Bærum wants to bring more rised access to the area. for resale. The handover of the flats took place quality in life into the east side of the old town centre by during the period August – December 2008. 70 per accommodating more residential development, so Energy-efficient heating solutions cent of the flats were delivered without any that the area is not completely desolate after the The buildings are heated by means of waterborne defects, which is an extremely good figure. The shops and offices have closed in the afternoon. heat from a district heating plant in Bærum. There defects that were pointed out, were mainly of a The old Victoria linoleum factory, which in recent are two internal water systems in the building; minor character. When the last flat was delivered, years has been used for various small-scale activi- one for warm tap water and one for heating. The the recreational yard was also fully completed. The function and ties and businesses, was also located here. But water used for heating runs in a separate, closed residents have indicated that they are very pleased the condition of the old brick building gradually be- system, where it is warmed up by the water from with their new home. came so poor that demolition was the only option. the district heating plant in a heat exchanger, to Thus, Veidekke was allowed to contribute to a pos- prevent dirt from entering the system. The non-residential premises were completed in itive development of the centre of Sandvika by re- February 2009, and at that time, nearly all of them vitalising the area and making it more attractive to A great deal of glass is used in the façade of the were already let. The office building at the back of design. use, both in day-time and at night. buildings, to give the flats a light and airy atmos- the complex has been handed over, and the phere, and extensive views. The windows are tenants have moved in. The total sales value for the Victoriagården – a state-of-the art Public-oriented activities made of glass with a “sun stop” coating which flats amounted to approx. MNOK 425. One of the requirements for being awarded the reflects a large share of the heat in the sun rays. housing project in Sandvika, right contract, was that the project should include a In places that are hard to get to, we have used so- combination of residential and business premises, called self-cleaning glass. This type of glass has outside Oslo. with facilities for the public at the front, such as been treated with a substance which causes a cafés and shops, facing the promenade along the chemical reaction, so that ordinary dirt is rinsed off Sandvika river. when it rains. In compliance with strict noise re-

18 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 19 industry.

530,000 m2 during 2008 A cheaper option Veidekke wound up its operations within surface Surface dressing is a cheaper option for the main- dressing of roads in the 1990s, but resumed the tenance of low-traffic roads, compared to using activity in 2008. The emulsion for the surface ordinary asphalt pavement. The lifespan of a pave- dressing is produced in a factory at Jessheim, ment surface dressing is 10 – 20 years, depending north of Oslo. During the course of 2008, Vei- on the amount of traffic on the road and provided dekke has delivered surface dressing services to no damages occur as a result of e.g. snow the Public Roads Administration, as well as to ploughing in the winter. municipalities and private customers. Veidekke In the past, maintenance of so-called low-traffic has applied a total of approx. 530,000 m2 of the Applying a new emulsion pavement is a quick and roads, such as county roads and private roads, new surface dressing material in the course of efficient process, which is performed directly on could be both expensive and detrimental to the last year. This represents a market share of around the road with mobile equipment and rapid environment. However, a new type of solvent- 40 per cent. The turnover was approx. MNOK 16 progress. A working team can apply approx. free surface dressing has now been developed, in the first year of operation. At the start of 2009, 25,000 m2, or around 3.5 km, in the course of a making this form of road maintenance more inter- the Public Roads Administration has called for normal working day. The work is demanding, and esting again. Veidekke has been a prime mover in tenders for surface dressing projects covering must be performed by skilled workers. It is vital to the development and introduction of this new approx. 2.1 million m2 in the coming year. In 2010, achieve the correct mix. Too much emulsion will type of asphalt pavement. this market is expected to increase by a further cause sweating, and too little will result in the 50 per cent. crushed stone coming off the surface. Using water instead of solvents Surface dressing of roads is a generic term for var- Usually, this type of pavement can be applied ious types of pavement maintenance based on a directly onto gravel or asphalt roads which are in mixture of asphalt and crushed stone or gravel. need of maintenance. Larger holes or bumps are sparing the Previously, some form of solvent, such as paraffin, evened out before the emulsion is sprayed was used to make the asphalt into a liquid binder directly onto the existing pavement. A layer of (emulsion) for the gravel. In the new type of crushed stone is then put down and subsequently emulsion, water is used instead of solvents. This pressed into the emulsion using a rubber roller, so way, the ground and surrounding environment is that the stones are not crushed any further. When not polluted by solvents. In addition, using water the water evaporates, the asphalt emulsion will environment is much cheaper than using solvents. form a hard and smooth surface. The crushed stone in the top layer makes the pavement In the 1970s and 1980s, surface dressing was extremely durable. The process of applying the frequently used in the maintenance of roads, surface dressing material is, to some extent, especially roads with a low level of traffic. How- dependent on weather conditions and must be ever, the use of this type of pavement was performed in the summer, in order for the water from solvents. gradually phased out, until new and more environ- to evaporate. ment-friendly binders once again made surface Surface dressing is an environment- dressing a feasible option. friendly and cost-efficient option for maintaining roads with limited traffic.

20 +++ Veidekke in brief 2008 + + + Veidekke in brief 2008 +++ 21 + largest ongoing building and construction projects.

NORWAY SWEDEN

PROJECT TYPE CUSTOMER TURNOVER COMPLETION PROJECT TYPE CUSTOMER TURNOVER COMPLETION MNOK DATE MSEK DATE Gulskogen Senter, Drammen Shopping centre Gullskogen Senter ANS 871 2010 Norra Länken 33/34, Stockholm Road tunnels Swedish Public Roads Administration 1 099 2011 Double tracks, Lysaker–Sandvika (LS01/LS02) Railway project Norwegian National Rail Administration 757 2011 Nynäsv V73, Nynäshamn–Stockholm Road Swedish Public Roads Administration 341 2009 The Løren tunnel, Oslo Road tunnel Public Roads Administration 664 2013 Kv. Bocken, Stockholm Office building Fabege 3152009 Kjøsnesfjorden power plant, Kista Gård, Stockholm Road, bridge and tunnel Stockholms Markkontor 1962009 county of Sogn og Fjordane Hydropower plant Kjøsnesfjorden Kraftverk AS 554 2010 Kv. Ugglan 22, Stockholm Dwellings Veidekke Bostad AB 1752009 Thor Heyerdahl Upper Secondary school, Larvik School Vestfold regional authorities 488 2009 Solberga, Stockholm Dwellings Veidekke Bostad AB 1432009 FMC, Kongsberg Office building Kongsberg Næringseiendom AS 475 2010 Strandbodgatan, Uppsala Ground and concrete work Swedish Rail Administration 1412011 Bybanen, Bergen Light-rail system Bergen municipality323 2010 Rättscentrum, Göteborg Office building Vasakronan 1232009 Kanalveien, Lillestrøm Dwellings Olav Thon Eiendomsselskap AS 282 2010 Tussmötesvägen, Stockholm Dwellings Veidekke Bostad AB 1162009 Gladengveien 2, Oslo Office building Rognerud & Strøm AS 265 2009 Björnbo, stages 1 and 2, Stockholm Dwellings Sistut AB 1162009 Returkraft Energisentral, Kristiansand SThermal energy plant Returkraft AS 260 2009

DENMARK

PROJECT TYPE CUSTOMER TURNOVER COMPLETION MDKK DATE Det ny Gentofte Sygehus, Hellelrup Hospital The Capital Region of Denmark 321 2009 AAB/AB, Silkeborg Renovation ABB/AB 3192010 Åhaven, Vallensbæk Dwellings Sjælsø Entreprise A/S 266 2009 Glostrup Storcenter, Glostrup Renovation Steen & Strøm 1632010 Herford plejecenter, Fredericia Dwellings Fredericia municipality147 2009 Stigsnæsværket, Skælskør Extension of power plant DONG Energy Power137 2009 Aalborg Sygehus, division Nord, Ålborg Conversion/renovation of hospital The North Denmark Region 1202009 Lalandia, Billund 114 holiday homes by Legoland Parken Sport & Entertainment 1072009 Centralværkstedet, Århus Office building ATP Ejendom 79 2009 Kjøsnesfjorden power plant Road tunnel at Norra Länken, Stockholm Lalandia holiday homes, Billund Bazar Vest, Braband Commercial building Byggeselskabet Olav de Linde 73 2009

22 +++ Veidekke in brief 2008 + + Veidekke in brief 2008 +++ 23 Key Figures addresses.

2008 2007 2006 2005 2004 VEIDEKKE ENTREPRENØR AS VEIDEKKE SVERIGE AB HOFFMANN A/S VEIDEKKE EIENDOM AS VEIDEKKE INDUSTRI IFRSIFRSIFRSIFRSNGAAP Construction Norway Sweden Denmark (Property development) (Industrial operations) P. O. Box 506 Skøyen, N-0214 Oslo Råbyvägen 1, S-224 78 Lund Fabriksparken 66, DK-2600 Glostrup NOK million Skabos vei 4, N-0278 Oslo OPERATIONS A) Telephone: +46 46 19 94 00 Telephone: +45 4329 9000 P. O. Box 507 Skøyen, N-0214 Oslo KOLO VEIDEKKE a.s 20000 Telephone: +47 21 05 50 00 Fax: +46 46 14 53 81 Fax: +45 4343 3422 Skabos vei 4, N-0278 Oslo P. O. Box 508 Skøyen, N-0214 Oslo Operating revenues 19 395 19 336 16 442 14 579 12 826 Fax: +47 21 05 50 28 E-mail: [email protected] E-mail: [email protected] Telephone: +47 21 05 50 00 Skabos vei 4, N-0278 Oslo Operating profit 796 883 712592 352 16000 E-mail: [email protected] Fax: +47 21 05 50 11 Telephone: +47 21 05 50 50 E-mail: [email protected] Fax: +47 21 05 50 51 Earnings before tax (EBT) 8161181923 711 383 Region East VEIDEKKE ENTREPRENAD AB HOFFMANN ENTREPRENØR 12000 E-mail: [email protected] Net profit for the year 1) 611990 708 558 263 P. O. Box 103, N-1713 Grålum (Construction ) (Construction) Region East Tuneveien 87, N-1712 Grålum P. O. Box 507 Skøyen, N-0214 Oslo Asphalt/Road Maintenance Backlog of orders, construction 10 564 13 263 12 381 10 902 9 177 8000 Telephone: +47 69 97 27 00 Region Heavy Construction East Region East Non-residential projects Skabos vei 4, N-0278 Oslo P. O. Box 508 Skøyen, N-0214 Oslo Fax: +47 69 97 27 01 Box 1503, S-172 29 Sundbyberg Fabriksparken 66, DK-2600 Glostrup Telephone: +47 21 05 50 00 Skabos vei 4, N-0278 Oslo 4000 E-mail: [email protected] Allén 7, S-172 29 Sundbyberg Telephone: +45 4329 9110 Fax: +47 21 05 50 11 PROFITABILITY Telephone: +47 21 05 50 50 Telephone: +46 8 635 61 00 Fax: +45 4343 3422 E-mail: [email protected] 2) Fax: +47 21 05 50 51 Operating profit margin (%) 4.1 4.6 4.3 4.1 2.7 0 Region South Fax: +46 8 635 61 98 E-mail: [email protected] Kornmagasingata 1, 3160 Stokke E-mail: [email protected] Gross profit margin (%) 3) 4.2 6.1 5.6 4.9 3.0 07060504 08 E-mail: [email protected] Region South Telephone: +47 33 30 79 79 Region East Rehabilitation Bedriftsveien 6, N-4353 Klepp Stasjon Return on capital invested (%) 4) 28.0 49.3 44.5 36.8 19.1 Operation revenues Fax: +47 33 33 72 99 Region Stockholm Fabriksparken 66, DK-2600 Glostrup Telephone: +47 51 78 99 00 Gravel and crushed stone (aggregates) E-mail: [email protected] Box 1503, S-172 29 Sundbyberg Telephone: +45 4329 9010 Fax: +47 51 78 99 01 P. O. Box 2024, N-3241 Sandefjord Allén 7, S-172 29 Sundbyberg Fax: +45 4343 3422 E-mail: [email protected] Østre Kullerød 5, N-3241 Sandefjord A) CAPTIAL ADEQUACY Region North-West Telephone: +46 8 635 61 00 E-mail: [email protected] Telephone: +47 33 29 30 71 Total assets 8 966 8 699 8 3116370 5 750 P. O. Box 6005, N-5892 Bergen Fax: +46 8 635 61 98 Region North/West Fax: +47 33 45 92 84 Møllendalsbakken 9, N-5009 Bergen E-mail: [email protected] Region Heavy Construction P. O. Box 6100 Sluppen, N-7435 Trondheim E-mail: [email protected] Total equity 5) 2 1142286 1 778 1 470 1 638 Telephone: +47 55 38 70 00 Fabriksparken 66, DK-2600 Glostrup Vegamot 8, N-7048 Trondheim NOK million VEIDEKKE ASA Equity ratio (%) 6) 23.6 26.3 21.4 23.1 28.5 Fax: +47 55 38 70 01 Region West Telephone: +45 4329 9150 Telephone: +47 73 82 35 00 Recycling P. O. Box 505 Skøyen, N-0214 Oslo 1200 E-mail: [email protected] S-416 82 Göteborg Fax: +45 4343 3422 Fax: +47 73 82 35 90 Net interest-bearing position 7) -260 192-534 -109 -76 Skabos vei 4, N-0278 Oslo P. O. Box 508 Skøyen, N-0214 Oslo Norra Gubberogatan 32 E-mail: [email protected] E-mail: [email protected] Telephone: +47 21 05 50 00 Skabos vei 4, N-0278 Oslo 1000 Region Heavy Construction Telephone: +46 31 50 56 00 Fax: +47 21 05 50 01 Telephone: +47 21 05 50 00 LIQUIDITY P. O. Box 504 Skøyen, N-0214 Oslo Fax: +46 31 84 68 61 Region West Fax: +47 21 05 50 21 800 E-mail: [email protected] Skabos vei 4, N-0278 Oslo E-mail: [email protected] Edwin Rahrs Vej 88, DK-8220 Brabrand E-mail: [email protected] Liquidity at 31 December A) 354 272 331 345 401 Telephone: +47 21 05 50 00 Telephone: +45 8747 4747 600 Fax: +47 21 05 50 28 Unused borrowing facilities A) 1 273 1 681 1 275 1 628 1 096 Region Skåne Fax: +45 8747 4787 More addresses on www.veidekke.com E-mail: [email protected] Kalkstensvägen 2, S-224 78 Lund E-mail: [email protected] Cash ratio 8) -11. 97 4.85 6.28 5.12 400 Telephone: +46 46 19 94 00 Region Special Projects 200 Fax: +46 46 14 53 81 Technical Division P. O. Box 504 Skøyen, N-0214 Oslo SHARES AND SHAREHOLDERS E-mail: [email protected] Fabriksparken 66, DK-2600 Glostrup 0 Skabos vei 4, N-0278 Oslo Telephone: +45 4329 9340 Market price at 31 December 22.30 50.75 47.40 38.50 20.20 07060504 08 Telephone: +47 21 05 50 00 Fax: +45 4343 3422 Fax: +47 21 05 50 26 Earnings per share B) 9) 4.5 7. 1 5.0 3.9 1. 9 VEIDEKKE BOSTAD AB E-mail: [email protected] E-mail: [email protected] (Property development) D) Earnings before tax Dividend per share 2.5 4.0 2.6 2.0 3.6 Box 1503, S-172 29 Sundbyberg Outstanding shares (average million) 135.2 140.0 142.9 143.0 138.3 Allén 7, S-172 29 Sundbyberg HOFFMANN EJENDOMME A/S Telephone: +46 8 635 61 00 (Property development) C) Market price at 31 December 2 982 7 056 6 680 5 507 2 890 Fax: +46 8 635 61 99 Fabriksparken 66, DK-2600 Glostrup E-mail: [email protected] Telephone: +45 4329 9310 Fax: +45 4343 3422 EMPLOYEES NOK million E-mail: [email protected] Number of employees in Scandinavia at 31 December 6 244 6 475 6 351 5 598 5 436 14000 Sickness absence all employees, Norway (%) 5.3 5.2 4.9 4.6 4.9 12000

Sickness absence all employees, Sweden (%) 2.8 3.3* --- 10000 * Sickness absence all employees, Denmark (%) 2.2 3.3 --- 8000 Lost-time injuries per million hours worked, 6000 Scandinavia (injury rate) 4.5 7. 05.7 9.3 10.8 4000 Wages and social benefits A) 4 1253831 3 307 2 930 2 701 2000

0 07060504 08

Orders-on-hand construction

A) Figures in MNOK / B) No dilution effect / C) Adjusted for share split 1:5 May 2007 D) Including extraordinary dividends of NOK 2.50 * Reporting started 2007 RDCIN FR GRAFISK KF/RK PRODUCTION: CREUNA DESIGN: AND CONCEPT AS / PH www.veidekke.com OTO : TO YHL D • DDB • HALL NY RY OQAT • QUANTZ NO TO BNJNE VEIDEKKE • JENSEN RBEN

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