Veidekke Asa

Good morning and a warm welcome to the presentation of Vedekes results for the third quarter of 2025. Vi är glada för att det är flera som har benutit anledningen att besöka oss här på Ulven. Men varmt välkomna också till er som följer oss i sändningen på nätet. Och det är ju speciellt hyggligt att invitera till det som är Veidekke's högsta ordinära kvartalsresultat i kronor och ören någonsin. Och här är det ju på sin plats att tacka hela organisationen i Veidekke, alla mina kollegor, för insatsen och prestationen. As usual, I will briefly summarize the results from an overarching concern perspective, before Jörgen takes us through the details for each business area and the financial one. After that, I will conclude with a few comments on what we can expect in the future, before we invite to Q&As, which Jörgen and I will answer as well as we can. It is possible to send in questions as usual during the presentation on ir1veidekke.no, then we will take them up at the end. But safety and the well-being of our employees is extremely important for an organization like ours. So let me first talk about our HMS work before we dive into the details. Vedec operates in a industry that is in-house risk-filled, and many of our employees and our suppliers' employees perform physically demanding work every day, where there are many risk factors. Yes, and many of my colleagues, we often spend our working days out in the project, on gravel or out among the asphalt. And we do it to talk, to listen and to get an understanding of the experiences and experiences we have out there. Internally, we often refer to it as being in the machine room. And what is certain is that we always talk about the risk in the operations that are carried out or that are to be carried out, and how we can work to eliminate the risk of something unwanted happening. Overwhelmed, we follow up the safety status of Veidekke based on a number of factors. All from unwanted events to serious injuries, and as you can see in the graph, we have four serious injuries in the last 12-month period, and one of these occurred in the third quarter. där en maskinförare på väg ut ifrån maskinen sin fastnade med fingret så illa så att fingret dessvärre behövde amputeras. Oavsett hur lite vi önskar att sådana här skador sker så är det viktigt att vi brukar tid på att förstå och finna läring av det som har skett ända från projekten till styrelserummet. We have taken the opportunity to claim that low injuries is a good indication of both safety and good planning, which also means good conditions for flow in production. A well-timed HMS work thus creates conditions for profitability. To the right of the slide, you see another challenge in Vägdäcke, similar to the one we see in the rest of the society, and despite a stabilization, we still experience high health care compared to before the pandemic. Health care is a topic that is high on the agenda throughout Vägdäcke and we work closely with the management in our projects, with the company health services and with our trust groups to get these pillars to start pointing down again. I am genuinely proud of the HMS work that is being done in Vägdäcke to create safe workplaces with high productivity and low health care so that everyone comes home healthy and healthy from work. In the long run, it is the important drivers that lead to great results. So to the numbers, and on an orderly level, the third quarter this year has the highest ordinary quarter result ever. We increase the turnover, we improve the result and we exit the quarter with a solid order reserve, 16% higher than last year. This creates conditions for growth in activity in the future. But that was on an orderly level, so let's dive a little deeper into the numbers. Weidecke continues to increase the turnover in this quarter and increased the turnover by 10% compared to last year. There has been growth in as much as all business areas, but the biggest increase is found in Hoffman and Infrastruktur Sverige. In Norway, the turnover in buildings increases as a result of good order entry over time. and high demand for asphalt has given increased turnover in Infrastruktur Norge. The result for the tax was SEK 721 million and is a success of over SEK 100 million compared to the third quarter last year. So we have stable good profitability in the portfolio and the increase in results here is first and foremost an effect of turnover growth and better use of capacity. The order entry in the quarter was at 7.2 billion, an OK level given the high order entry we had in the previous quarter, and that the third quarter is normally the quarter with the lowest order entry in a year. Buktebild is now at 1.2 and indicates continued increased activity levels for Veidekke. The order reserve is still high with 47.5 billion. It is the construction companies that stand for the majority of the turnover in the quarter, and roughly speaking, we maintain the level of turnover from the second quarter, as seen in the construction companies gathered on the roadside. The infrastructure companies, especially the Norwegian ones, maintain no level of turnover in the quarter, but there is in the meantime good access to new possible tasks in that part of the construction and construction market. In construction, the market is still challenging, even if it is a little more positive views now than before. And Vedec has shown good ability to navigate well through challenging times and get access to new projects with good profitability also in a demanding market. And in the future, the entire industry is expected to be able to take advantage of somewhat better market conditions. So then we will look a little more at the details in the order entry in the quarter. In parallel with the second quarter, it is the construction companies that are responsible for most of the order entry. The order entry has been the largest in the segment public professional construction, with access to all three countries. VDK will, among other things, build an office and laboratory for Denmark's Technical University in Copenhagen, worth 585 million. VDK has also signed the construction of a new institute for music in Bergen, called Grieg Akademin. for state buildings to a value of 480 million. Access to new housing projects is relatively good, preferably on the Norwegian side. And in this quarter, there are several large housing projects in Rogaland that stand for the majority of that order in the quarter. There is also an investment desire in the market for private residential buildings, and in the quarter we have signed several contracts. Veidekke will, among other things, rehabilitate Obo's old headquarters in Oslo. Vi ska bygga ett logistikcenter för posten Bring i Bergen. In Kallenborg, Denmark, we will build a new water cleaning facility for Novo Nordisk. In front of the infrastructure segment, the order entry is largely on the Swedish side. For example, we will build the fourth part of Västlänken's Haga stage, called Stora Hamnkanalen. On the Norwegian side, we are working with several projects in the supply stage and we hope that some of them will be completed in the fourth quarter. In summary, it is a satisfactory year-round in the quarter and we experience relatively good access to new projects that hopefully will materialize in new tasks for road tires in the future, where we can create values for both our customers and for road tires. Then, Jørgen, I leave the floor to you for a more detailed overview and the financial part.

There is a lot of work to be done, both to create the results we did in Q3 and to recreate them in Q4. So it is very nice to be able to say good morning from Veidekke. 10.7 billion i omsetning, 721 resultat og 6.8% magin er oppsummeringen av kvartalet. Det innebærer at omsetningen er ca. en milliard over fjoråtsnivå, 10%. An increase, as you can see, comes in four of five segments. The fifth, Bygg Sverige, is in parity with last year, and that is an important observation that I will be able to come back to. When the activity goes up, it is decisive that the profitability also follows. If not, then the activity increase has no point. Therefore, it is also nice that our results increase by 100 million kroner, and that it does so in almost all of our segments. Finally, it is nice to note that it is a quarter of the infrastructure segment, if we are to sum up the battle between construction and infrastructure internally. The construction industry in Norway, 3.5 billion kroner in turnover, was up from 3.2 last year, which is 8% higher. If we look back at Q2, we were 9% above last year's level. This means, if we look at the two below, that we have now completed the downward trend in turnover that we had in 2024 and into 2025, and now we see the increase. The background is, of course, the development we had in the old reserve. A bit of geography. Where have we increased? It is in the western part of the country, Stavanger Bergen, and it is in areas around Oslo, the central eastern part of the country. But it is a good opportunity for activity also in other parts of the business. The result is 148 million, up from 129 in the same quarter last year. The margin was 4.3 against 4 that time. We have thus broken out of the 4% margin belt, which has been a good period. The background is, of course, the consequences of the activity increase. Increased a little more to do and better capacity utilization across the company. And that is exactly where you should follow up on us in the future. It is important now, in a phase with increased activity, that we continue to focus on the advantages and disadvantages of the margin, the advantages and disadvantages of capacity, or the advantages and disadvantages of capacity utilization. That is the main question for this segment in the future. A good quarter on the results side. The order reserve, 18.4, was 19 last quarter. When you calculate percent, it's 3 percent decline. When you look at it and describe it with words, it's on the same level. And as Jimmy said, Q3 is the quarter this year where we traditionally have the lowest order input. Half of the quarter is summer vacation, to put it simply. So we are very pleased to be able to maintain this level. This is called the new level of the order reserve. In Q4, some projects have already been announced, both for housing and for food, for those who are following up on that. The consequence of the order reserve increase that we have had in the last two quarters is, of course, that we are playing over in activity, and we expect to see increasing activity in this segment next year. Infrastructure in Norway is a turnover in the quarter of 3.1 billion. It is up from 2.8 in the same quarter as last year. The area that in itself is increasing is the asphalt area. The third quarter is the big production quarter for asphalt. We usually say that two thirds of what we produce comes in that quarter. And this year it has come to fruition. We had 31% higher activity, multi-tonnage, than we had last year. Both on the even road size and in addition some airports and new projects on the way. And high activity in such a type of business with a more industrial footprint than the rest of us, of course, leads to results. And the asphalt is then almost 1 to 1. The main explanation for this result increase is seen in this segment. We achieved 321 in 2021. In the third quarter of 2024, it was 381 in the year. So the change is on the asphalt. When that is said, one should not forget the other areas. There is good activity in several of them. There are good results in operation and maintenance. There are good results on the track to attract someone forward. The order reserve is 9.6 billion, down from 10.6 billion a quarter back. So there is no order entry, or at least no small order entry in this quarter. And there we repeat what we said in Q2, that if there are some places we especially see that we have a little too low business at the moment, then it is on a large project on the site. Therefore, it is also nice to be able to say that the facility is involved in half of the project, the internal workforce, on the project we announced the other day, with a hotel down in Bjørnstøve. So the project is underway. Bygd in Sweden, a turnover in the quarter of 1.6 billion. It is the same as the previous quarter last year. And that, as I said a little earlier, is an important novelty, because we have been down, down, down for two years, or perhaps more, in activity in Sweden. We had a tendency to outflow in Q2 this year. We see an outflow this year. Now, combined with the order reserve, which is 7.2 billion, the same as last quarter, but up from a belt of 6 billion, if we go back a quarter, it indicates that the decline is broken. And then we can see from which projects we can get in the portfolio, what we can get from the increase. The result is 25 million kroner against 36 million kroner in the same quarter last year. There is some activity decline in Gothenburg, and it is the one that breaks through in the result when compared to last year. But it is important to emphasize that the business we have in Gothenburg is well performing, and we want to be that and move forward. Infrastructure in Sweden, 1.7 billion in turnover. It was 1.5 last year. The increase is based on two conditions. A structural condition. We bought a company in northern Sweden, Euro Mining, in Q4 last year. It is with us for the first time. It contributes to half the increase in activity. And the other half comes from a broader, from our business in general. Both on the entrepreneur side, but also on the industrial side. The result is 104 million, up from 76 in the same quarter last year. This is the effect of having Euro Mining with us for the first time. It contributes to the results we have expected it to have. But there is also a fairly clear improvement in the overall business. Industry with high activity and our project portfolio in broad, which is doing well. 8.8 billion is the oil reserve. It was 9 billion last quarter and 9 billion before that. We see an activity, perhaps increasing, but around today's levels in the short term, into 2026. Denmark, in the end, I think has 870 million in activity, in turnover. 23% increase in Danish kroner from the same quarter last year. That's quite a lot. And it has its basis in high activity in many projects on the way into autumn. Increased activity in that scope naturally gives enough results, especially when we have the margin portfolios we have in Denmark. Therefore, an increase from 76 last year to 94 this year. Last but not least, two larger projects in the portfolio in this quarter. Therefore, the annual reserve increased to 3.5 from 3.2-3.1, which has been many quarters behind us, and therefore also prospects for some increase in activity in Denmark in 2026. In the financial helicopter segment, the balance is at 18.9 or 19. It was 17.7 in the same quarter as last year. The change, the purchase of Euro Mining, is one element on the investment side. Moreover, it is natural changes in operating capital that are behind. The most important number in this picture is, as usual, our net interest rate position. It is now 2.7 billion, it was 1.2 billion last quarter, so if you call the change cash flow, we have 1.5 billion in cash flow in this quarter. We will have that, because the value chain binds money in operating capital in the first half year, and we get the money back in Q3 and Q4 seasonally. But when that is said, it is a content stream that is strong. And in that picture, we are finished with Q3, but traditionally, seasonally, we will also have a strong content stream in Q4. That is the teaser for the Q4 presentation, which is in three months, so I have to come back to be responsible for the results. So with that, Jimmy, back to...

Tusen tack för det Jörgen. På det stora hela så levererar vi i tråd med egna förväntningar även om ni precis som jag ser att det är variationer i underliggande verksamhet. Innan vi avslutar och öppnar upp för spörsmål så tänkte jag ge några kommentarer till situationen idag och vilka förväntningar vi har framöver. In this graph, you can see two lines that both describe change. The red line is change in the order reserve from last year, and the blue line shows change in the 12-month turnover from the same period last year. When the lines are above zero, it means that the order reserve or turnover grows and vice versa. What we show is that it takes time before change in the order reserve gives an impact on the turnover, typically in our industry, four to six quarters. And we see that the order reserve fell through 2023 and large parts of 2024 and that the effect on the turnover came later. And on a running 12-month basis, we have had a decline in turnover the last year. As we also see, the order reserve has had a positive development in the last 12 months. The order reserve is now 16% higher than at the same time last year. And the part of the order reserve that will come to turnover in the coming 12 months is up 11%. This is starting to show in terms of turnover and at the start of the third quarter we had 1.2 in Buktebil for the entire company and Buktebil is over 1 in all business areas. A few weeks ago we also released our market report that you can find on our website. It shows growth in the entrepreneurial markets for 2026 and 2027, but on a moderate level. We also note stable high activity for the parts of Veidekke's operations that are not included in the order reserve, such as asphalt, geomaterials and euromining. All in all, this shows that Veidekke is expected to grow over the next 12 months. This is a slide that we have seen many times before. The market is what the market is, but we can only focus on what we can influence. We are well positioned and deliver steadily better results. At the same time, there is still great potential for further improvements for the VDK Group. It is about being in the machine room and managing everyday life. The tasks we face every day are in a way simple and clear, but at the same time demanding. It is about discipline, about understanding and handling uncertainty, and only taking on risks that we understand, can value and that we have the ability to handle. In practice, it means to be selective in which tasks we take on, that we understand the uncertainty so that it can both be appreciated and handled in the implementation of the project, which for us applies to both risks and opportunities. And when we can carry out the project on a plan, or better, then the results will be strong and the customer satisfaction will increase. It is also about having an efficient and efficient machinery in everything from costs, efficiency and quality, from project to administration. Last but not least, there are still units in Väidäcke that do not reach their ambitions and there is constant work going on to turn them around. And with the right focus and the right measures, the effects will come over time. In summary, we are happy with a strong result, well aware that the potential for further improvements is great. And before we run out of questions, let me summarize what we have put forward. Väjdeke ökar omsättningen med 10% och det är omsättningsökning i alla tre land. Vi förbättrar resultatet i kvartalet med över 100 miljoner jämfört med tredje kvartalet i fjol. Resultatökningen är i huvudsaken effekt av omsättningsökningen och bättre kapacitetsutnyttelse. We believe there are good prospects for further growth in the coming quarter, with an order reserve of 47.5 million, which means a clear increase from last year. With strong results in the back and insight into the possibilities of improvement, our ambitions for further development of road tires are high. Thank you for listening to us this morning. We open up to questions from both the hall and the web.

Let's see, here we have Bengt Jonasen from ABG. Description of the market situation now versus the first half of the year in a lower order speed.

I can take tempo, and he can take the situation. Because tempo is as expected. Q3 is the season-wise quarter we have the lowest order entry on. You can see that if you go back. So we actually think that given that, the order entry is satisfactory. It is season-wise that Jimmy can take the broad and good answer.

Yes, of course we had a very high order in Q2, so it can also be a coincidence what came in which quarter. What can you say about the market? It has been and is quite slow, especially in the construction of infrastructure, the market has been good for quite a long time. But within Bygg we have waited a long time for the market to start growing, not least in Sweden. And we see small signs that it looks like it can get a little better outlook, as we present in our market report. But the growth in the market is still at a moderate level, as we see it both for 2026 and 2027.

Have there been any signs of the next year's season for road traffic and asphalt compared to 2025?

Yes, there have been. What we can read from the state budget, for example, and what we believe about the towns and so on, we believe that the conditions that will end up on the asphalt side are on the same level, or some percentages higher. I think the state budget, the part that goes in that direction, is 5-6% up. But that should cover a lot, so it's signals and not a facet. What we know is that we have chosen a phase, in addition to the balance part that comes there, we now have a fairly large portfolio for 2026. on new buildings on the way and some other airfields. So we know that we already have in the same way as we had this year. So we believe that the market view, the activity view of Asphalt is in parity with what we see this year, or maybe a little higher, but it is a little early to take.

When you look at the portfolio today, does Q3 represent a step up in profitability? Excuse me, I didn't hear correctly. Does Q3 represent a step up in profitability when we look at the portfolio today?

The increase in results comes mainly from the increase in revenue and better capacity utilization. So we can say that the profitability in the portfolio is probably... About the same as it has been, except that we have managed to show better margin sliding in several projects than we have done before.

What do you mean by margin sliding? It is positive development in the margin through the project's implementation time, just to be precise.

Can you tell us about the scope and time frame of the Westlänken project in Infrastruktur Sverige?

Yes, the one I presented a while ago is a new project called Stora Handkanalen, but I assume that it is aimed at this project where we have gone in and taken over the work on Korsvägen. There you can only see what the traffic agency itself communicated around the size of the project. And if I remember correctly, they said 4 to 500 million. And what can you think? We are there at least one year, I think.

The cash flow, is there any special post there?

No, it is a consequence of our portfolio being wide. There are no special posts in it, so it is the sum of all projects in a normal way.

Then we have Simen Mortensen in DNB Carnegie. The margin of infrastructure in Norway has been very strong in Q3 at 12.4%. Can you tell us a little more about how sustainable this level is towards Q4 and 2026, especially when the asphalt volumes are normalized?

If I were to challenge the question a bit, then I think that it is asphalt that pulls up the magic. There is no doubt about that, and that should only be missing, because it is the big asphalt quarter. So that's why I challenge the concept of sustainable in many ways, because the asphalt season... It has been very good also in October, we know that. And the weather and the animals are all together, so everyone looks out and knows that it is possible to still lay asphalt. But that would end, and then we are over on Q4, which is normally the entrepreneur magic quarter for that segment. And the first quarter is the winter, so it's the end of the fair before we start up again in Q2. So we almost have to separate it in the way I'm doing now. So the asphalt will control the total. The rest of the business is quite flat season-wise, and there we have good margins both on the track and on the running track.

You mention good profitability in large co-operative projects, but weak activity in special projects. How do you see the balance between these two areas developing in the next 12-18 months?

If we take the special units, they are to a greater extent dependent on how the construction market works, since it is often about We hope that the market will help us a bit. But the part of Väydäcke that is special units in relation to the rest of the facilities and large projects is relatively small.

Let's see. The order book is up 16% from last year. How would you describe the price level and risk profile of the contracts that have been signed this year compared to 2023 and 2024?

We mean that we will successively become better at understanding and handling risks. I would say that is a fact. So in that way, it will get better.

Then we have Thomas Svendsen from ECB. Can you comment on the low net and financial revenues in the quarter?

Yes, we can certainly do that. It is a bit special. It is important to say that the start of this quarter is the starting point of our liquidity curve. And then it rises. So that will give lower financial returns in this quarter than otherwise. Otherwise, what we call surplus liquidity, is quite... It gives a 4.5% discount. That's the soul of this. And there's no special position. I understand it's a half-bad answer, but it's nothing special.

That's it.

Det ser inte ut som att vi har några händer uppe i salen så då får vi tacka för oss. Tack för att ni ville lyssna på oss den här morgonen och på återseende om ett kvartal.