In Brief 2008

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In Brief 2008 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.
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