Veidekke expects the construction and infrastructure segments in the
Scandinavian contracting markets to continue to take different paths over the
next two years. Total activity is expected to decline by -9% in 2024 and by -2%
in 2025, measured in current prices.

Overall, the trends forecasted for the construction and civil engineering
markets in the period to year-end 2025 are relatively similar for the three
Scandinavian countries. Common denominators include weak residential production
figures and strong estimates for the civil engineering sector. Climate
adaptation and transport are significant drivers of the infrastructure project
pipeline, while continued robust macroeconomic trends, in terms of strong labour
markets and population growth, would normally indicate high construction demand.

"In our view, several underlying drivers in the construction and civil
engineering markets remain strong. If anticipated help in the form of lower
inflation and interest rates materialises, we expect to see construction
activity return to new growth in 2025 and into 2026. We expect to have an even
clearer picture of whether markets are heading in the right direction by the
autumn," says Veidekke Head of Analysis Kristoffer Eide Hoen.

The infrastructure market is expected to maintain its positive momentum
throughout 2024. Growth estimates have been increased to 4%, from 3% in the
previous forecast. The trend is expected to flatten out in 2025, albeit at a
record-high level of activity.

As expected, construction markets are showing a negative trend, in line with the
main forecast in Veidekke's September 2023 market update. Despite a -8% decline,
production in 2023 was still somewhat stronger than the -13% drop forecast last
autumn. The estimate for 2024 has been adjusted to -16%, from -13% in the
previous report. Given the current situation, it appears that most of the
production drop will occur in 2024, and that the decline in 2025 will be a more
moderate -3%.

"The most positive development since the previous report is the stabilisation of
cost inflation. Although commodity prices have not fallen, energy prices are
returning to normal levels and construction-cost inflation is back at
historically familiar levels. While customers are still paying uncomfortably
high interest rates, more stable cost inflation is helping to alleviate the
problem," concludes Kristoffer Eide Hoen.

For more information, please contact:
Kristoffer Eide Hoen, Director of business development and analysis, Veidekke
ASA, +47 976 75 434, Kristoffer.Eide.Hoen@veidekke.no.

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking
all types of building and civil engineering assignments, the group also
maintains roads and produces asphalt and aggregates. Veidekke emphasises
stakeholder involvement and local experience. Its annual turnover is
approximately NOK 43 billion, and half of its 8,000 employees own shares in the
company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit
every year since its inception in 1936.