Veidekke Asa

Good morning everyone and welcome to the introduction of VDK's first quarter in 2026. As usual, I will give my comments and statements from a consumer perspective, as well as comment on the order situation. After that, Jörgen will go through the details of our business area and our financial status. Finally, I will summarize and give comments on our focus these days. Till slut öppnar vi upp för frågor från er som är här i salen och från er som följer oss i sändningen. Det går som vanligt bra att skriva in frågorna underveis på ir1veidecket.no så tar vi dem till slut. Men först HMS i Veidekke. Health and safety for our employees and everyone else who works for Veidekke is part of our DNA. And we are concerned that as far as possible, the way we work does not expose our colleagues to unnecessary risk. And that means that risk should be identified and that safe work analysis is carried out in advance of all work moments. And low risk for injuries. Det är en konsekvens av både sikker adfärd och tekniska barriärer som reducerar sannsynligheten för skador. Under en längre tidsperiod så har vi sett att antalet skador har hållit sig på en låg nivå men att de under de senaste kvartalen har gått upp. Det har bekymrat mig och samtidigt har vi satt fokus på att det får ner igen. Vi har aktivt kommunicerat fokus på risiko och säkerhet från toppen, och verksamhetsområdena har själva infört tilltag som passar deras specifika utfordringar. Det är glädjande att se att antalet allvarliga skador pekar nedåt, för Veidekets prioriterade mål inom HMS är noll allvarliga skador. Det kräver kontinuerligt fokus, för ett högt tillstånd av säkerhet på projekten må genskapas varje ny dag. Sjukfrånvaron har varit under lupp i halvt annat år nu, och här är kurvan knäckt, men det kräver fortsatt mycket jobb för att kunna verifiera en varig nedgång. Låg sjukfrånvaro och låga skadetal begär inte bara förutsättningar för en god arbetsmiljö, det leder också till ökad produktivitet. Första kvartalet är som vanligt låg säsong för Veidekke, men likaväl har vi haft god aktivitet i de flesta enheter. Kvartalet slutade med en omsättning på 9,7 miljarder, vilket är en ökning med 7% jämfört med första kvartalet i fjol. Resultatet är också förbättrat i jämförelse med i fjol. Årreserven har ökat till 48,1 miljarder tack vare en god åringång. Då är inte vårt stora kontrakt på Oslofjordförbindelsen som kommer in i andra kvartalet inräknat. Allt i allt pekar det i rätt riktning och vi är gott rustat för tiden som kommer. Here we see the development of the capital in the quarter compared to the previous year. The turnover is increasing, the turnover is good and we have grown in many parts of the business. The result before the tax ended at 27 million. The first quarter is as normal affected by low season in parts of the business. At the same time we see a clear improvement of the drift in total and the drift result from the business is up with 80 million. De oroliga tiderna påverkar finansmarknaderna. För Veidekke betyder det att vi inte har haft förväntad avkastning på överskottslikviditeten i detta kvartalet. Jörgen kommer tillbaka till det senare. Ordering in the quarter was at 11.5 billion and contributed to increasing the order reserve to 48.1 billion. Buktobil is stable at 1.1 and that indicates continued increased activity in the future. En stor del av orderingången kom i Norge, både innanför bygg och infrastruktur. Det är speciellt glädjande att se att anläggsverksamheten i Norge har vunnit tre nya kontrakter. Det bidrar till en efterlängtad uppgång i orderreserven för Infrastruktur Norge. Tillsammans med Oslofjordförbindelsen, som vi skrev kontrakt på i april, så är det goda förutsättningar för anläggsaktiviteten framöver. In ByggNorge, the reserve has increased to nearly 20 billion efter att vi vunnit flera stora kontrakt i kvartalet. Det är bland annat Sörlandets sjukhus och nya kontorslokaler i Oslo för hav-eiendom, bägge med en kontraktsvärdi på över en miljard. In Sweden, the order reserve is almost down, with a major decline in infrastructure. On the construction side, we still experience it a little tired, but we see increased activity among customers compared to a few years ago. And within infrastructure, there is still good access to new projects, and here it is more about choosing and managing to win the right projects. So then we go in and look a little closer at the order increase in the quarter. som fortsatt har tyngdpunkt mot byggsidan. I detta kvartalet är orderingången speciellt stark innanför yrkesbygg, både för offentliga och privata kunder. Det mesta är ingått i Norge, och jag har redan nämnt två av de största projekten. Även om den samlade orderserverna är nogen ned i Bygg Sverige, så är vi gott förnöjda med orderingången i BRA i kvartalet. Här har vi ingått flera nya kontrakter, både innanför nybygg och rehab av kontor, samt nya logistikbygg. In terms of infrastructure, the order is mainly on the Norwegian side. The construction business has, as I said, entered three new contracts. There are two new power plants in Västlandet, Åserdal and Offerdal, with a total value of about 1.1 billion. And then we will renew Järnbanesbor for Banu Nord i ett kontrakt värt 500 miljoner. Vi har också signerat ett vägvidlike kontrakt i kvartalet. Det är Fosen Nord för Tröndelag Fylkeskommune. Och så har vi instillts på ytterligare tre kontrakter, men dessa är ännu inte signerade. The first quarter is the high season for the year's offer round in the asphalt for state and district contracts. And we have received a good allocation. This round is still not completely finished, but Jörgen will come back more specifically around the status of it in a moment. So then I leave it to you, Jörgen. Here you go.

Thank you. And since the daily work in Veidekke starts early, both at the office and at the project, it is as usual a good morning in Veidekke. The turnover in the quarter is 9.7 billion, the result is 27 million, and a clear improvement in the result against the same quarter last year, as Jimmy has already said. There are two conditions that I would like to highlight in this format. The first is the combined improvement in results that we have from our business areas. It was 13 last year, and it became 92 this year in the first quarter. And it is, moreover, the same improvement in results, naturally enough, as you can see, for those who are very fond of finance, look at the EBIT line there. The second situation is the second segment, which is minus 65 in the quarter. It was minus 34 last year, and what is declining is the reduction in the administration of our surplus liquidity. We are lacking, simply put, about 30. In fact, we had 2 million in reduction in the first quarter, and we should have had that in the middle of the 30th century. And that is declining, and that is what we see again on that line in the results of the relationship. Our guidance says that the line will be about minus 35 square meters in the future. Bygge Norge, en omsetning i året på 3,9 milliarder kroner. Det er opp 7% fra samme kvartal i fjor. Vi har vært på en stigende aktivitetslinje fra Q2 2025, med cirka dette nivået på økning. Forskjellen i år mot i fjor er at vi i år også ser aktivitetsøkning på den virksomheten vi har i Oslo. Resultatet, 165 million kroner. Det er opp fra 134 i fjor. Tydelig opp marginen. Som følge av økt aktivitet og en god prosjektportefølje med gode marginer, så øker marginen fra 3,7 til 4,3 i kvartalet. The order reserve is clearly up this quarter. Ten percent, as we have already indicated. 19.8 billion is on. Two important conditions that we want to emphasize. One is the increase we have in the order reserve since the last year, since Q1 last year. They are at 33 percent. The used car is at 1.3 percent. Og det betyr jo i all enkelthet at økt aktivitet innenfor dette segmentet vil være det vi kommer til å ha ut i år og over i 2027. The infrastructure company in Norway, 1.6 billion in revenue, it was 1.8 billion last year. It is low season, we say. It means no activity on the asphalt side in Q1. The activity on the construction segment, it means in practice on large project construction, on operation and maintenance and on the track. And lower activity on large project construction and track is what pulls the activity down now in Q1. Resultatet ble 207 million kroner i minus. Det var 189 millioner samme kvartal i fjor, så det er en nedgang. Todelt, asfaltvirksomheten, lavsesong, kostnadskvartal, og klarer det kostnadskvartalet. with an improvement in the results measured against last year. So there we have had good control. The result of the decline comes from the other segment, i.e. from the construction segment, which is a large project, construction and field. Lower activity, of course also a lower result on that side. The reserve is up by 8% in the quarter. And you say that Kraftverk is on the other side as a special leader. And Kraftverk, in our terms, means a lot of tunnel work, which is a core subject for us. Also nice with ordering on the track side. So for both of the two segments that we have seen lower activity in this quarter, we also see an increased oil reserve and thus some increasing activity on the autumn side of the North Indies. Then there is the asphalt. Exciting for two reasons. Firstly, because we are through the seasonal handling with Riksdag and Fylkesveien always in Q1. So we are in the process of, as we have always said, rolling out the machines these days. But it is also exciting this year because of the uncertainty in the oil market, of course. In summary, first of all, we have a good statement and basis for this season. We are very aware of the uncertainty as a result of the oil, and we are long-term and have carried out a purchase in Troms to strengthen our positions in an area that is attractive to see with long glasses. A little more about this year's deal. Riks- and Fylkesveien is almost finished, 775,000 tons, I think, we are laying on. Per nå, i uttelling, vi hadde 640 000 tonne samme kvartal i fjor, så vi har altså noe høyere ordre. Vi har ikke ordrereserve på det, men en høyere ordrebok, for å si det enkelt. Vi har i tillegg en god portefølje med større nybyggskontrakter på anlegg, og asfaltering av flyplasser med oss, ca. 500 000 tonne, på samme nivå som i fjor. Og hvorfor bruker jeg The reference to tons is to look at the total volume we will have on a yearly basis. Last year, the season ended with 2 million tons, so we will start higher, and we will have a normal annual income for the rest of the year. How do we look at the crisis in the Middle East? We have simple entrepreneurs, so it's... We read about it in the newspapers, so we don't have much insight into it. On the other hand, we are very interested in following the consequences for us on raw material prices, on sourcing and on the offers we have in relation to our customers. We experience good mechanisms, both in terms of getting the right price in and in terms of declaring responsibility for cost assessments with customer index regulations. in that direction. It is completely normal in the public sector. And where there is a need for it, on larger contracts, we use financial insurance on raw material costs. So we try to be on, we do as well as we can. We can not say anything other than that we have good tools and good people, and we are busy handling the situation that is in the best possible way. Back to the usual segments. Build Sweden. En omsetning i kvartalet på 1,8 milliarder, 1,6 var den i fjor. Det er en økning i lokalvaluta på 11% i kvartalet. Det er geografisk litt rundbaut som vi ser at vi har økende aktivitet, naturlig nok for vi hadde en økt ålderreserve i det segmentet i fjor. If we look at the results, it was about 53 million kroner. It was 16 million kroner in the same quarter last year. Det er en tydelig oppgang. Det er gledelig at vi for den delen av den svenske virksomheten vår som er under Veidekke brand, så har vi andre kvartal på rad med positive resultater. Det er vi veldig stolte av, og det er der vi ønsker å holde oss. Datteselskapet vårt, BRA i Gøteborg, leverer fint, økende aktivitet, og topper kvartalet med en What about the order? 7.2 billion kroner. Ender ordrereserven på. Den er en tydelig ned i kvartalet i norske kroner. Norske kroner har jo styrket seg. Valutakursen har endret seg i kvartalet ganske tydelig. Og i svensk valuta så er vi altså 1% forskjell fra forrige kvartal. Så det er altså videreført. God inngang, spesielt i Göteborgs dataskelskap, vårt BRA. Her er oppsummeringen. Infrastruktur i Sverige. En omsetning i kvartalet på... 1.6, that was 1.4 last year, and an increase in the company. So there is good activity this season, both on our investment projects. The result was 15 million kroner, that was minus 4 last year. No specific conditions, except for increased activity and good profitability in the company. in the portfolio. And the reserve, 7.7% at the end, 8.6% in the previous quarter. And here the currency is an essential explanation of the change. In the Swedish currency it was down 7%. En endring vi er helt komfortabele med, de som husker historikken på dette segmentet, er jo at vi har stadig hatt økende aktivitet de siste årene. Vi stabiliserer oss kanskje nå, men vi holder oss på de nivåer vi er. Og som sagt, nok å jobbe med og kjempe om. Danmark til slutt, en omsetning på det er vel snart 900 millioner kroner. Det er høy aktivitet til dette segmentet å være med. Vi har hatt det de siste kvartalene. Vi ser for oss at vi skal ha det inn mot sommeren også. Det er en konsekvens av den orderingangen vi hadde det siste år. The project portfolio is good, the margins are good, and the results are as follows. 65% against 56% last year, and the margin is over 7%. It's a good start to the year. The year reserve is 3.8 billion. It's a bit down in this quarter. Historically, it's been up 20%, so we've had a good start. What we're doing now is that we're looking at the next big Phase 1 projects at København. That's what we're doing. What we are looking for, to be able to keep our reserve, to keep activity. And the hunt will be done, but historically we have at least succeeded quite well with that, and we still believe that we will. So that was the segments. It's up to the financial helicopter at the end, and the balance is 19 million kroner. Det er litt opp fra samme kvartal i fjor. Da var den på 18,2. Men her er nuansen viktig. Hvis vi ser på de enkelte balansepostene, så er vi altså ned både på anleggsmidler og vi holder driftskapitalen lav. Og det som gjør vi i balansøkning, det er... den hyggelige effekten av god kontantstrøm og økte likvider, og det er en hyggelig posisjon å være i. Det betyr analytisk et veldig viktig forhold, eller det understreker et veldig viktig forhold, og det er at vi har tatt den aktivitetsøkning som vi har hatt det siste året med på et kapitaleffektivt sett, altså vi har ikke bunnet mer kapital, snarere tvertimot så løpemeldingen på cashflow er sterk, og det viktigste tallet på dette On this level, this is our net profit position. It is 4.6 billion kroner. It was 4.1 at the start of the year, and not least, it was 2.7 at the same time last year. We have had... Thank you very much. Jo, det er fra byggevirksomhetene våre som har god drift og god prosjektlikviditet og god fart inn i andre kvartal og resten av året. Og det skal du få lov til å kommentere mer om nå hjemme i.

Tusen tack, Jörgen. Ja, ett gott första kvartal. Och på linje med det vi tidigare har kommunicerat om Veidekets strategi mot 2030. Den här illustrationen har vi visat tidigare och det kommer vi fortsätta med. Det sker ju mycket runt omkring oss i världen och det kan ju lätt stjäla av det fokus vi är avhängiga av att våra ledare har. För vi ska ju först och främst fokusera på det vi kan påverka och göra någonting med. Och det viktigaste är ju att lyckas vinna de riktiga projekten. Det är ju trots allt kvaliteten i den samlade projektportföljen som skapar resultaten i Veidekke. And a lot of the improvement in the last five years comes from the awareness of choosing which projects we are going to work with, and not least which projects we are not going to work with. And all the business areas, they successfully refine their selection criteria for that. And that can of course differ from one to another, but what is common for everyone is that it should be projects where we have the capacity and competence to carry out as expected. That is to say, no team, no bid. And it is also completely fundamental that we understand and can handle the risk that the project has. So ergo here, blind risk, it is no go for us. Last but not least, the project's contractual and commercial conditions must be such that it puts both us and the customer in a position to succeed with the project. In short, the conditions to succeed and be in place are important selection criteria for us. On the way in, in the second quarter, we have a well-balanced portfolio of high quality with a good mix of projects, both in construction and infrastructure, and to different customers in different segments. And we see that as a strength. In the first quarter, it is public occupational construction that comes out with an increased order reserve. And in the second quarter, it will be the segment samfärdsel that contributes most to the order reserve, as a result of the contract signing of the Oslofjordförbindelsen. With the collected project portfolio in view, we take from and with the second quarter in the task of building the Oslofjordförbindelsen. Det är ett stort projekt vi tar på oss, men som ni ser till höger i sliden så är det också ett projekt som har tydliga delar i sig i form av delprojekt. Det är en god match i förhållande till det som är vår kärnkompetens på tunnel och betong. Projektet tickar också av kriterierna som jag pratade om på den förra sliden. Nu ser vi fram emot sju års hårt och disciplinerat arbete. Så ska vi göra allt vi kan för att leverera ett succéprojekt i 2033. Uppsummerat för första kvartalet i 2026. Vi ökar omsättningen och det gäller i alla tre länderna. Resultaten fortsätter att förbättra sig och vi levererar ett starkt första kvartal trots ett svagare finansresultat. Och sist men icke minst, vi har en ordersituation som är robust och som borgar för ökt aktivitet i kvartalen som kommer. So, thank you for listening to us this morning, Jørgen. And now we open up for questions, so welcome up. So we'll take questions both from the room and from the web. You're welcome.

Simen Mortensen in DNB has a few questions. On the asphalt, First, can you explain how you now see the balance between strong supply volumes, increased market share and pressure from oil and bitumen prices on public budgets and private aftersales? How do we think about volume risk versus margin risk in the main season in Q2 and Q3?

I'm going to take a few comments, Jörgen, and then you can fill in. First of all, as Jörgen said, we have price regulation mechanisms in many contracts, especially state and district contracts. If we don't have it on large projects, we have and can secure the betumeprices. If you compare it to a couple of years ago, we are in much better shape now than we were then when it came to price risk on the bet. The biggest risk is that these state and district contracts have volume components in them that make it possible for the customer to reduce the volume by up to 15% in those contracts. So we'll have to see how it goes. It all depends on how the season develops.

If I may add something, it's obvious that the risk of post-questioning is a major issue. If we had received a question a quarter ago, before the halftime in Midtøsten, we had said that we were looking forward to an asphalt year that had, after the question, at a level with, or perhaps a tiny bit over last year. That would have been our general answer. It is of course challenged by what is happening now, where this ends and where it is. Again, we are actually entrepreneurs, we can't answer that either. But there are risks, in a way. What we can say is that we have a good basis when we start, i.e. 500,000 tons on large road contracts and airports, in parity with last year. And then these 775,000 tons, up from 640,000 tons on Riks- and Fylkesveien, so we have a good starting point, and a starting point a little higher than what we had last year. It is important to sail well in Q2 and Q3.

Sweden's margins have clearly improved in Q1, especially in construction. Apart from the one-time effect from BRA, where a lot of improvement is due to better capacity utilization and activity, versus a more underlying margin normalization. Do you now see Sweden as on its way into a more sustainable higher margin phase?

Yes, the 2.9% margin is fine. And then there is a two-part, as we said. In one and a half part of the business, we had a result right over zero. That is not sustainable to be direct. That is not what we have as a goal. But we are at least glad that we have black numbers, and other quarter numbers in a row, and are going further from there. And that is simply a little better capacity utilization, but also a little better project margins in the part of the business that is the basis there. Then there is the other half of the business that is in Gothenburg. We call it one-time effects, but one-time effects that come evenly over the years. We have project development as an important part of our business model. It is no longer one-time effects, so we are very happy to realize the profit in this quarter as well. and hope for more answers in the future. The use of capacity is fine, and the magic is at the target level. So sailing from there is the theme. So there are two parts, as before, but it's nice that there is development in a positive direction.

The order reserve that will be produced in the next 12 months increased by 8% compared to last year. Is this a good indicator of the visibility around the revenue in the future? And how do you assess the risk around the implementation or conversion of this order book? And possibly what about the upside in the additional order and so on?

I can take the facts, and you can take the risks. That's a good consideration. In the last quarter, we've been 6-8% up in activity, so 80% of what you're asking is quite illustrative. And I think what we're also saying here, how the situation is with supply and risk, that's very good.

What can I say? If you look at ByggNorge, we see a very strong book-to-build, and we know that the activity will increase. Then there will be increased capacity utilization, and if we look at the history, we have seen that it also leads to good results. But then, as always, it's the entrepreneur's day. This order book will always be filled. So that's what we're struggling with all the time, and trying to do as much as we can.

Siste spørsmål fra Simen. Marginer. Veidekke leverer rekordsterke marginer, mens flere underleverandører fortsatt virker presset på lønnsomhet og kapasitet. Hvor mye av dagens marginstyrke skyldes et midlertidigt sterkt innkjøps- og forhandlingsvinduet, og hvor mye mener dere er strukturelt bærekraftig når underleverandørmarkedet og konkurransen normaliseres?

Vi tror att vi på väldigt många sätt är gott rustat. Jag har ju pratat nu i flera år om våra selektionskriterier. Det gäller att välja de riktiga projekten som vi har riktiga team till och kunna också vara bättre och bättre på osäkerhetsstyring genom projekten, vilket innebär att vi i högre grad ser att vi lyckas genomföra på plan eller bättre. Men mekanismen som Simen pekar på, den är ju helt riktig. I en marknad under press så gör vi vanligtvis bättre underleverantörsköp. Medan i en marknad som tar sig lite uppåt så får vi väldigt god kapacitetnyttelse som verkar i andra rätningen. Så ska vi få dem där att spela i som positivt i alla marknader.

So we have Bengt Jonasen in ABG. He wonders, he thinks 60% of the market share on state and rural roads sounds high, how do you assess the discipline in the application processes in relation to the demand for services?

Discipline, we consider as good. The share is quite high, it was maybe 50 and something last year. With that, it shows that it is not so far off in relation to what has been the case so far this year. Market share was totally set on asphalt in Norway. We had last year a production of 2 million tonnes. The market was at 5, 3, 5, 4, 5, 5 million tonnes, so we had... I think it's between 35 and 40 percent of the market share. So that's the level we're at and look forward to having this year. So it's not like the 60s is very high, but what we're working from is the combined market share that we have between 35 and 40.

So maybe you can add that we have been at least as disciplined in pricing of these new offers as we have been in recent years.

Then he wonders about something about the clausules in the contract about 15% lower volume, whether this is normal or new this year, whether it has historically been exploited and whether there is any difference between Norway and Sweden here.

In Sweden, our asphalt industry is much smaller, and there is no way to get into any of that type of state and district contracts. But in Norway, it is a mechanism that has existed for a long time, and it is not only minus 15%, it is plus 15% as well. And that is because the customer is trying to meet the sum of money they have received to work with asphalt during the season. So yes, that has been used both down and up historically.

When we take it up and comment on it, it is simply to describe what the scope is in relation to the contracts we have. and it would be wrong not to do that, then we have no indication that it will be used in this season. But the mechanism is there, and we will follow it for our part, and we will be open to it in communication.

Can there be a physical lack of bitumen in the incoming season?

No, here we have actually put a little extra effort into checking our delivery chains. And the two suppliers we use, they definitely mean that there is a very low risk of a shortage of bitumen in Northern Europe.

So he wonders when you expect full production on the Oslofjord connection?

Det er et syvårig kontrakt. Når vi har beskrevet hva vi forventer rundt aktivitetet er, så har vi sagt at det første året er litt på... Annex-kollegaene våre kommer til å si at når vi sier halvfart, så kommer de til å banke oss opp etterpå. Men det er et lavere aktivitetsnivå i det første året, og det vil være litt lavere på slutten, og så er det ganske jævnt imellom der. Så i 2027 ser du det prosjektet forfullt.

So we have the last question. How much has the order book changed as a result of the currency changes in total?

That is an unusually good question that I have a half-year answer to. But you don't see much against Denmark, you see it against Sweden. And again, in local currency, the construction side is down 1%, and the investment was down 4%. So it is the remaining part that is currency. I don't know what that will be, but it will be... Det blir väl en liten miljard eller sådant då.

Tack. Ja, då ser det ut som att frågorna är slut. Och ingen räcker upp handen i salen. Så då får vi igen tacka för oss den här förmiddagen. Och på återseende om i vart fall ett kvartal. Tack ska ni ha.