Forecasts for the Contracting Markets 2019–2020

Market update Q3 2019

30 October 2019 Kristoffer Eide Hoen and Anders Wettre Agenda

01 Introduction 02 Market drivers 03 The contracting markets 04 Summary

2 © Veidekke Veidekke’s market data

• Quarterly update on veidekke.com • Can be filtered by geographical region and sector in Scandinavia • Forecasts for 2019 and 2020 available; 2021 to be added in Q4

• Preparation of historical market data for the contracting markets • Automated data collection and quality assurance by Statistics Norway, Statistics Sweden, Statistics Denmark, Macrobond, Veidekke and others.

• Forecasts for the contracting markets for 2019 and 2020 • Macroeconomic variables from the IMF, the National Institute of Economic Research, Statistics Norway, the Danish Economic Councils, central banks, Almi, etc. • Forecasts for the construction sector are based on machine-learning tools (RNN) • Forecasts for the civil engineering sector are based on data from different sources and analyses of investment activity, financial capacity and project databases

The report describes anticipated developments in the Scandinavian contracting markets in the period to 2020, but does not reflect Veidekke’s own expectations for the Group’s development during the period.

3 © Veidekke Scandinavian contracting markets Dominated by civil engineering and apartment blocks Not included: The contracting markets 2018 + Detached houses and holiday homes: NOK 140 billion Building construction* and infrastructure in NOK billion + Primary industry: NOK 20–30 billion + Residential refurbishment, “off the books work” and household DIY

PrivateCommercial yrkesbygg buildings Total Scandinavian market 2018: NOKNOK 144 133 milliarder billion ~ NOK 660 billion

Apartments and small AnleggCivil engineering Leiligheterhouses og småhus OffentligePublic buildings yrkesbygg NOKNOK 234 240 milliarder billion NOKNOK 198 213 milliarder billion NOKNOK 79 78 milliarder billion

*Residential units: All new-builds, rebuilds and additions, excluding detached houses and holiday homes. Source: Veidekke’s market data Non-residential buildings includes an estimate of the transparent ROT market for project sizes >NOK 20 million. 4 The civil engineering market only encompasses new-builds. © Veidekke Forecasts for the contracting markets 2019–2020

Market drivers Investment decisions Contracting markets

5 © Veidekke Forecasts for the contracting markets 2019–2020

Indicators:

GDP, interest rates, Construction starts, Production/revenue labour market, etc. sales, orders

6 © Veidekke Forecasts for the contracting markets 2019–2020

Indicators:

GDP, interest rates, Construction starts, 2019 2020 labour market, etc. sales, orders

Degree of visibility/predictability as at October 2019

7 © Veidekke 02 Market drivers

8 © Veidekke Macroeconomic overview International growth and construction and civil engineering Production index, GDP growth construction and civil engineering Comments Percentages Seasonally adjusted index, 2015=100

160 • Lower trade growth and reduced Percentages 2016 2017 2018 2019 2020 investment are dampening international 150 150 Eurozone 1.9 2.5 1.9 1.2 (1.6) 1.4 (1.7) economic cycles 140

Germany 2.2 2.5 1.5 0.5 (1.3) 1.2 (1.6) 130 126 • Improved growth forecasts for 2020–2021, 125 not least due to aggressive 120 124 UK 1.8 1.8 1.4 1.2 (1.5) 1.4 (1.6) 115 monetary policy 110 111 USA 1.6 2.4 2.9 2.4 (2.5) 2.1 (1.8) 100 • The northern European contracting markets have tapered off in 2019 90 China 6.7 6.8 6.6 6.1 (6.2) 5.8 (6.2) – growth over for now? 80 Global 3.4 3.8 3.6 3.0 (3.5) 3.4 (3.6) 70 2012 2013 2014 2015 2016 2017 2018 2019 Brackets indicate estimates in March 2019. Germany Estonia Latvia Lithuania Poland Finland

Sources: IMF and Eurostat 9 © Veidekke Macroeconomic overview Scandinavia

Economic activity Interest rates Comments Purchasing Managers’ Index (PMI)* Five-year government bonds, percentages

70 3,0 • Downturns among international trade partners have a knock-on effect 2,5 65 2,0 • Interest rate rises are no longer expected, with long interest rates falling in the past 60 1,5 1,2 half-year 1,0 55 • The impact of a downturn on the 0,5 50,4 construction and civil engineering market 50 0,0 49,5 is not obvious. Lower interest rates/rate

46,3 -0,5 -0,6 forecasts have previously had positive 45 -0,8 effects on e.g. the residential sector -1,0

40 -1,5 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 *Measures changes in industry activity levels based on monthly surveys of purchasing managers. Figures above 50 indicate growth, index figures Norway Sweden Denmark Norway Sweden Denmark below 50 indicate a slowdown.

Sources: Norwegian Association of Purchasing and Logistics, Swedbank, Danish Purchasing and Logistics Forum, Norges Bank and Macrobond 10 © Veidekke Demographics Net immigration

Net immigration Norway Net immigration Sweden Comments: Percentage of population Percentage of population

2,0% 2,0% • Immigration is generally high in most metropolitan regions 1,6 % 1,5% 1,5% • New development: Improvement in 1,1 % several Norwegian metropolitan regions 1,1 % 1,0% 1,0% 1,0 % following a weak period 0,8 % 0,7 % • Immigration is both an important driver 0,5% 0,5% and a consequence of residential 0,2 % 0,2 % construction 0,0% 0,0%

-0,5% -0,5% 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019

Greater Oslo Bergen Greater Stockholm Uppsala Trondheim Stavanger Greater Gothenburg Greater Malmö

Source: Statistics Norway, Statistics Sweden and Veidekke 11 © Veidekke 03 The contracting markets

12 © Veidekke Scandinavian contracting markets Stable, high activity levels until the end of 2020

Market level Market change Comments Annual production, NOK billion Contribution to change, NOK billion

800 140 14% • Activity levels remain high, but the period 3% 4% 10% 9% 12% 6% 0% 2% of strong growth has ended 700 120 12%

600 • Non-residential buildings and civil 100 10% 500 engineering are positive contributors, 80 8% at least until the end of 2020 400 60 6% 300 • Marked differences between metropolitan 40 4% regions in the past year, but more stable 200 going forward? 100 20 2%

- - 0% Forecasts contracting markets 2012 2013 2014 2015 2016 2017 2018 2019 2020 Report 2018 2019 2020 Civil engineering Public buildings -20 -2% 2014 2015 2016 2017 2018 2019 2020 Commercial buildings Apartments and small houses October 2019 6% 0% 2% Growth % change in constr./civ. eng. r.a. March 2019 5% -3% 0%

Source: Statistics Norway, Statistics Sweden, Statistics Denmark and Veidekke 13 © Veidekke Scandinavian contracting markets Overview of relevant markets and growth

Production in the building construction sector in 2018 and growth rate 2019 and 2020 (CAGR) Positive CAGR 2018-2020 Neutral CAGR 2018-2020 (-5% to +5%) Market by region, NOK billion Negative CAGR 2018-2020

Source: Veidekke’s market data *Excl. Greater Oslo 14 © Veidekke Building construction

15 © Veidekke Norwegian residential market Prices and building starts Residential property prices Building starts, in the largest markets apartments and small houses Comments Price per m2, NOK ‘000 m2, quarterly

80 000 350 CAGR 2018-2020 • Stable, positive trends in the secondhand +3% +0% housing market are expected to continue 70 000 300

60 000 • Apartment and small house building starts 250 will remain at a high level in eastern 50 000 +0% 200 Norway, but will be more moderate 40 000 +1% in other regions 150 30 000 +0% +0% • The Financial Supervisory Authority’s 100 -6% 20 000 proposed residential mortgage regulations: Elimination of special 10 000 Price growth September–September 50 -17% -12% requirements for Oslo** most efficient 0 0 measure? 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020 Greater Oslo Eastern Norway* Oslo Bergen Trondheim Stavanger South-West Western Norway * Excl. Greater Oslo Trøndelag ** 40% equity share requirement applicable to purchases of second homes Sources: Real Estate Norway, Statistics Norway and Veidekke 16 © Veidekke Norwegian residential market Number of units

Building starts, apartments and small houses Comments 12-month rolling quarterly total, number of units

35 000 Apartments and small houses 2018 level 2018 2019P 2020P • Apartment and small house building starts have remained Number of building starts 22,000 -17% 0% -9% higher than anticipated, particularly in areas around Oslo 30 000 • A moderate correction is expected in 2020, measured as 25 000 the number of started apartment and small house units

20 000 • Historically, 20,000 started apartment and small house units in 2020 is still high 15 000

10 000

5 000

0 2012 2013 2014 2015 2016 2017 2018 2019 2020

SSB data P 3/19 P 9/18

Sources: Statistics Norway and Veidekke 17 © Veidekke Swedish residential market Prices and building starts Residential property prices Building starts, in the largest markets apartments and small houses Comments Price per m2, SEK ‘000 m2, quarterly

70 000 450 • Large drop in building starts in Stockholm; Price growth September–September CAGR 2018-2020 400 considered to have bottomed out 60 000 +4% 350 • Mixed construction activity in the other 50 000 300 two major metropolitan areas 40 000 +2% 250 -10% • Stable secondhand housing market, 30 000 +6% 200 and the supply of new residential units +7% 150 has stabilised 20 000 100 10 000 -10% 50 -11% 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020

Greater Stockholm Greater Gothenburg Stockholm Gothenburg Malmö Greater Malmö Uppsala

Sources: Mäklarstatistik, Statistics Sweden and Veidekke 18 © Veidekke Swedish residential market

Supply of unsold new apartment blocks Comments Number of units. All phases*

4000 14000 • Symptom of «supply shock» in 2016 and 2017

3500 12000 • Stabilisation and some decline in unsold units in 2019 3000 10000

2500 8000 2000 S&U down 30 % 6000 1500

4000 1000

500 2000

0 0 * Not yet started, in production and completed. The latter category only accounts for a modest proportion. 2016 2017 2018 2019

Skåne County Västra Götaland County Stockholm and Uppsala, r.a.

Source: Booli 19 © Veidekke Swedish residential market Number of units

Building starts, apartments and small houses Comments 12-month rolling quarterly total, number of units

60 000 Apartments and small houses 2018 level 2018 2019P 2020P • The number of new apartment and small house building starts Number of building starts 41,000 -19% -3% 8% has tapered off approximately as expected 50 000 • 40,000 started units is still high historically, and better matches available capacity and expertise 40 000 • Construction cost growth was very high in the period 2014–2017, 30 000 but is falling now

20 000

10 000

0 2012 2013 2014 2015 2016 2017 2018 2019 2020

SCB data P 3/19 P 9/18

Sources: Statistics Sweden and Veidekke 20 © Veidekke Right-to-rent vs. owner occupancy Form of ownership, started apartment blocks

Greater Stockholm Västra Götaland Skåne Number of units Number of units Number of units

Right-to-rent Owner-occupied Right-to-rent Owner-occupied Right-to-rent Owner-occupied

18 000 8 000 9 000

16 000 7 000 8 000

14 000 7 000 6 000 12 000 6 000

5 000 3 136

3 3 863 10 442 10

10 000 5 000 5 895

4 000 4 4 533 8 000 4 000

5 5 005 3 000 6 000 4 317 3 000

2 000 1 958

4 000 2 000

3 3 663

3 3 648

3 3 006 5 5 998

1 000 1 575 5 5 337

2 000 5 082 1 000

2 2 448

2 2 413

1 1 318 700 0 1 607 0 0

Source: Veidekke’s market data * 12-month rolling quarterly total, as at Q2 2019 NB: This overview does not include outright ownership, which only accounts for a marginal proportion (approximately 450 units in 2018). 21 © Veidekke Commercial buildings in Norway and Sweden Production Building construction sector production, Building construction sector production, Norway Sweden Comments 12-month rolling quarterly total, NOK billion 12-month rolling quarterly total, NOK billion

70 Multi-storey car parks 70 Office buildings • Stable outlook for commercial building Office buildings Industry and warehouses production in Norway, bullish forecasts Industry and warehouses Hotels, restaurants and accommodation 60 60 Hotels, restaurants and accommodation Retail and commercial buildings for 2020 in Sweden* Retail and commercial buildings 50 50 • Improved competitiveness (foreign exchange) and structural 40 40 conditions are boosting the industrial and logistics segment 30 30 • The growth forecast for Sweden 20 20 is vulnerable in the event of a stronger- than-anticipated economic downturn 10 10

*The production forecast for 2020 is based, among other things, on - - data showing the estimated number of building starts as at Q2 2019. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 Experience indicates that this figure may be subject to subsequent adjustment. The current forecast deviates from our view of the prevailing investment climate in Sweden, and we therefore regard this Source: Veidekke’s market data forecast as particularly uncertain. 22 © Veidekke Public buildings in Norway and Sweden Production Building construction sector production, Building construction sector production, Norway Sweden Comments 12-month rolling quarterly total, NOK billion 12-month rolling quarterly total, NOK billion

40 Other buildings 40 Other buildings • Activity in both countries will remain high Education Education in 2020, primarily driven by central 35 Culture and sport 35 Culture and sport government health investment Health and care services Health and care services 30 30 Norway

25 25 • Tougher priority-setting by municipalities is set to continue. Income growth is 20 20 declining and indebtedness is high 15 15 Sweden 10 10 • Formidable past growth, now tapering off 5 5 at a high level

- - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Veidekke’s market data 23 © Veidekke Health and care service buildings

Hospital projects Scandinavia Started in the period 2018–2025 Building construction sector production health and care services (including hospitals) NOK billion Project cost 50

45 Greater than 5,000 million 40 Trondheim 1,500–5,000 million

35 developmentExpected Less than 1,500 million 30

25 Bergen 20 Uppsala Oslo 15 Stockholm

10 Stavanger 5

0 Göteborg 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Norway Sweden Denmark København Esbjerg Malmö

Source: Veidekke’s market data Odense 24 © Veidekke Commercial buildings in Denmark Production Building construction sector production, Vacancy rate in Denmark Denmark Comments Percentage of total number of buildings 12-month rolling quarterly total, NOK billion

12 Office Retail Industrial and logistics 50 Copenhagen Zealand • The decline in the vacancy rate of Central Denmark Southern Denmark existing buildings has slowed, except 45 10 Northern Denmark in the industrial and logistics segment 40 • Preliminary data* on building starts in 35 8 2018 and 2019 indicate an overall decline 30 in production which is strongest in 6 25 southern and northernmost parts of Jutland 20 4 15 • The outlook for the region around Copenhagen and central Denmark 10 2 (around Århus) is positive and stable 5 for 2020

0 - *Statistics Denmark has revised its reporting system, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020 and the figures for 2018 and 2019 thus remain uncertain. The stippled line shows the vacancy rate for the region around Copenhagen. Source: Ejendomstorvet and Veidekke’s market data 25 © Veidekke Civil engineering

26 © Veidekke The civil engineering market in Norway and Sweden Activity tapering off at a high level

Production in different civ. eng. segments Production in different civ. eng. segments Comments Norway, NOK billion Sverige, NOK billion

• The forecasts have been adjusted 4% 17% 14% 2% 9% 8% 2% 3% -3% 10% 0% -3% 4% 13% 3% 4% 100 100 somewhat since March 2018

• High public demand will continue to be 80 80 central in future also

60 60 • Broad range of project scope and type

40 40

20 20

Forecasts civil engineering market: - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 Country 2018 2019 2020 Transport infrastructure Energy Transport infrastructure Energy Norway 8% (6%) 2% (4%) 3% (0%) Other civil engineering Growth Other civil engineering Growth Sweden 13% (7%) 3% (6%) 4% (7%) Sources: Statistics Norway, Statistics Sweden and Veidekke 27 © Veidekke The civil engineering market in Norway Broad range of project scope and type

Civil engineering production 2018 Comments By segment, NOK billion Transport infrastructure • Major public clients • Trend towards larger contracts Energy • National and regional stakeholders • Great variation in contract size Other civil engineering • Large but less transparent market • Market players with regional and local ties

Sources: Statistics Norway and Veidekke 28 © Veidekke A crowded mid-range Distribution of projects by size

Norway, by contract value (NOK million) Sweden, by contract value (NOK million) Percentage shares Percentage shares

Strong public- 25% sector 35% 40% 45% customers 10%

20% 10% 20% 20% 10% 15% 5% 5% 10% 15% 10% 30% 25% 20% 20%

2016 2017 2018 2019 2016 2017 2018 2019 20-150 150-300 300-500 500-1500 > 1500 “Rogue” 20-150 150-300 300-500 500-1500 > 1500 heavy equipment Sources: Norge Bygges, Sverige Bygger and Veidekke contractors 29 © Veidekke Water, sanitation and waste management High demand and strong growth

Investment in water and sanitation facilities NOK billion

14 CAGR 10-18 Norway: 8% Sweden:12% 13 12 12 12 11 10 10 10

8 8 8 8 8 7 7 7 6 6 7 6 5 4 4

- 2010 2011 2012 2013 2014 2015 2016 2017 2018

Norway Sweden

Sources: Statistics Norway, Statistics Sweden and Veidekke 30 © Veidekke Water, sanitation and waste management Trend towards more and larger contracts

Reported projects, Norwegian water and sanitation segment Distribution by size

100%

90%

80%

70% Veidekke has secured a new tunnelling contract 60% with Stockholm Vatten och Avfall 50%

40%

30%

20%

10%

0% Veidekke will refurbish the Himmerfjärdsverket treatment plan for Syvab 2014 2015 2016 2017 2018 2019

20-50 50-100 100-250 250-500 > 500

Investment in energy facilities NOK billion

25 CAGR 10-18 Norway: 8% Sweden: 3% 23 20 21 20 20 18 18 18 17 15 16 Veidekke is building av new 4.5 kilometre cable tunnel for Statnett in Oslo 14 14

10 11 11 10 10 8 8 7 5 6 6 6 6

- Veidekke is building a new wind farm for Eolus Vind AB in Sweden 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sweden Norway

Sources: Statistics Norway, Statistics Sweden and Veidekke 32 © Veidekke The railways market in Norway and Sweden Major projects being executed

Norway, production Sweden, production Comments NOK billion NOK billion

18 30% 55% 13% -15% -1% -2% 12% 16% 18 -14% 7% 17% -11% 4% 11% 6% 10% Norway

16 16 • Higher investment

14 14 • Escalation in accordance with the National Transport Plan 12 12 Sweden 10 10 • Modest central government budget proposal 8 8 for 2020, but the start of work on the Region 6 6 Stockholm* underground line has had a

4 4 positive effect

2 2 • Activity will increase after the forecast period - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020

Bane NOR, etc. Growth Swedish Transport Administration, etc. Growth * Formerly Stockholm County Council

Sources: Statistics Norway, Norwegian Government, National Transport Plan, Bane NOR, Statistics Sweden, Swedish Transport Administration and Veidekke 33 © Veidekke The Scandinavian railways market Priority area going forward Railway projects Production in the period 2018–2025

• High ambitions for railway development North Bothnia Line in the years ahead • Large public-sector clients

• Trend towards contracts with early Dovre Line Kleverud-Sørlie Bergen Light Rail construction stage 4 Venjar-Langset involvement Vossa Line: Arna-Bergen Ringeriks Line Fornebu Line Tunnel Line Oslo Follo Line Vestfold Line Stockholm C-Stockholm Södra Drammen-Kobbervikdalen Laxå-Arvika Akalla-Hjulsta-Ostra • Facilitation of international competition Østfold Line Nykirke-Berkåker Odenplan-Arenstaden Norra Sandbukta-Moss-Såstad Kungstradgärden-Nacka Södra Haug-Seut Fredrikstad-Sarpsborg Sarpsborg-Halden Västlänken Kvernberget Göteborg Korsvägen Aalborg-Hjørring Olskroken Haga Hobre-Aalborg Varberg, double-track

Hovedgård-Hasselager Ängelholm-Maria

Cityringen Sources: Bane NOR, Bergen Light Rail, Swedish Transport Administration, Region Stockholm, Odense Letbane M4 to Nordhavn BaneDanmark and Copenhagen Metro M4 toSydhavn 34 © Veidekke Ringsted-Femern Line Operation and maintenance in Norway Lower activity than forecast

Road operation and maintenance Railways operation and maintenance Comments NOK billion NOK billion

30 10 • Not keeping pace with the ambitions 11% 8% 9% 4% 9% 1% 3% 1% -2% 21% 3% 20% -12% 10% 8% 3% set out in the National Transport Plan 25 2018–2029 8 • The Government’s budget proposal for 20 6 2020 indicates that the national main roads network is given lower priority 15

4 • Increasing activity linked to maintenance 10 of existing railways

2 5

- - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020

Municipalities Counties Main roads/PRA Growth Operation Maintenance Growth

Sources: Statistics Norway, Norwegian Government, National Transport Plan, Norwegian Public Roads Administration, Bane NOR and Veidekke 35 © Veidekke The roads market in Norway and Sweden Growth has peaked

Norway, production Sweden, production Comments NOK billion NOK billion

• Municipal roads investment has increased 40 10% 8% 4% 7% 14% 9% -1% 4% -10% -3% 3% 13% 16% 12% -3% -3% 25 substantially in recent years 35 • Linked to residential construction 30 20 • Going forward, central government 25 15 investment will make the strongest 20 contribution

15 10 • Delays to major projects 10 5 5

- - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020

Municipalities Counties Main roads/PRA Central government/Swedish Transport Administration Municipalities PPP/PRA Nye Veier AS Growth Growth

Sources: Statistics Norway, Norwegian Government, National Transport Plan, Norwegian Public Roads Administration, Statistics Sweden, Swedish Transport Administration and Veidekke 36 © Veidekke Transport infrastructure in Norway National Transport Plan

Planning periods, National Transport Plan Implementation of National Transport Plan NOK billion NOK billion

NOK 295 billion 2018-2021 42,5 NOK 21 billion behind budget plan 40,6 68% implementation rate after year 3 of 4 39,5 40,0

2014-2017

25,6

2010-2013 21,7 22,6 20,6

2006-2009

NTP budget 2002-2005 Allocated Road projects Railway projects

0 50 100 150 200 250 300 Allocated 2018 Allocated 2019 Proposed 2020 Annual average, NTP

Veidekke’s market overview Highlights Assessment of current market situation • Improved interest rate outlook, poorer cyclical outlook • The contracting and residential markets appear more stable than for a long time; construction activity remains high • New market forces will feature in the next decade – demographic shifts and increased competitiveness will be central factors

Norway Sweden Denmark By sector, NOK billion By sector, NOK billion By sector, NOK billion

100 100 100 CAGR 2018-2020 +2 % CAGR 2018-2020 CAGR 2018-2020 90 90 +4 % 90

80 80 -8 % 80 +1 % 70 -6 % 70 70 +13 % 60 60 60

50 +2 % 50 50 +0 %

40 40 +4 % 40 -6 % +10 % 30 30 30 +4 % 20 20 20

10 10 10

- - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 Apartments and small houses Commercial buildings Apartments and small houses Commercial buildings Apartments and small houses Commercial buildings Public buildings Civil engineering Public buildings Civil engineering Public buildings Civil engineering

Soruce: Statistics Norway, Statistics Sweden, Statistics Denmark and Veidekke