Annual Report 2009  // The Company  // Veidekke in brief

Veidekke in brief

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collapse ikon Norway

collapse ikon Construction

DESCRIPTION KEY FIGURES
Nation-wide building and construction operations
MNOK 2009 2008 2007
Operating revenues 8 121 10 660 9 855
Earnings before tax (EBT) 524 708 643
Backlog of orders 8 581 6 579 9 030
Number of employees at 31 Dec 3 207 3 270 3 296
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Maintain a good profit margin in a challenging market
  • Stronger involvement of our subcontractors in safety
  • Strengthened customer dialogue and marketing
  • Gradually increase use of participative planning
  • Achieved a profit margin of 6.4 percent
  • Successful security dialogue pilot project with subcontractor management
  • Increasing orders on hand in a demanding market
  • Increased number of participative planning projects
  • Maintain good profit margin in a challenging market
  • Improve understanding of discrepancies within HSE, environment and quality
  • Strengthened customer dialogue and market work
  • Gradually increasing number of projects participative planning

 
 

collapse ikon Property development

DESCRIPTION KEY FIGURES
Mainly development of housing for its own account in Norway and to a certain extent in commercial buildings and special-purpose buildings for the public sector. Operations are concentrated around the largest towns
MNOK 2009 2008 2007
Operating revenues 349 632 1 389
Earnings before tax (EBT) -48 -50 431
Capital invested 1 463 1 929 1 844
Number of employees at 31 Dec 44 47 53
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • The sale of the unsold dwellings
  • Pre-sales and starting serviced projects
  • Capitalise on our financial strength to acquire favourable sites and projects
  • Number of completed unsold homes reduced during year
  • Sales picked up in 2009, and more projects will commence first half of 2009
  • We have obtained several interesting projects as a result of our financial strength
  • Pre-sales and start up of new projects
  • Sell finished commercial buildings and dwellings thereby reducing capital tied-up
  • Acquisition of new land

 
 

collapse ikon Industry

DESCRIPTION KEY FIGURES
Nation-wide asphalt, crushed stone and gravel operations, road maintenance and recycling of industrial waste
MNOK 2009 2008 2007
Operating revenues 2 968 3 293 2 907
Earnings before tax (EBT) 7 68 130
Backlog of orders 1 099 1 260 1 047
Number of employees at 31 Dec 1 111 1 268 1 212
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Significantly improve operation and maintenance activities
  • Focus on use of capital
  • Continue improvement efforts, including continued efforts to reduce CO2 emissions
  • Reduce frequency of injuries
  • Losses in 2008 and 2009 on first generation contracts, profitability in new contracts.
  • Positive cash flow
  • Reduced CO2 emissions in asphalt by 15 percent through lower energy consumption
  • Number of injuries increased from 2008 to 2009
  • Focus on profit margins
  • Develop company culture through, among other things, increased employee involvement and increased focus on HSE through clearer line responsibility with support of HSE staff
  • Avoid loss projects
  • Cost reductions with a focus on logistics, winter and overhead costs
  • Evaluate acquisition opportunities

 
 
 

collapse ikon Sweden

collapse ikon Construction

DESCRIPTION KEY FIGURES
Building and construction operations in regions around Stockholm and Gothenburg
and in Skåne
MNOK 2009 2008 2007
Operating revenues 2 355 2 801 2 756
Earnings before tax (EBT) 36 53 -4
Backlog of orders 2 764 2 479 2 222
Number of employees at 31 Dec 917 999 1 102
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Continue work with culture and values
  • Further develop the methodology and the participation of employee involvement on projects
  • Give priority to profitability rather than volume
  • Further develop procedures for financial management
  • Intensified business-oriented focus
  • Strengthen productivity efforts and increase the share of defect-free projects
  • Further develop the concept Climate-Friendly building
  • Increase the share of partnering contracts
  • Successfully worked with culture and values, especially in the area of employees and management. Must work more within customers and suppliers
  • Work with employee involvement took many steps forward. Will now work with employee involvement and participative planning for all projects and involve subcontractors
  • We have prioritised profitability before volume
  • Financial management has improved, but needs more work. Work groups are established in most regions, and work will continue in 2010
  • The ability to conduct business is strong in some parts of the organisation, but must be strengthened in other parts. This is the part of the work with culture and values
  • Marked increase in the number of defect-free projects
  • The first TellHus projects have started. There are now also concepts for office buildings and housing rebuilds
  • Learn more about our customers to conduct better business
  • Using our knowledge of climate change challenges for business purposes
  • Work to increase profitability in all regions
  • Continue the implementation of employee involvement/participative planning on all projects
  • Continue involved leadership efforts
  • Focus on the development of organisation and staff
  • Begin work on «Veidekke 2015» to provide a clear picture of who and where we should be. The work should be open, innovative and broadly based

 
 

collapse ikon Property development

DESCRIPTION KEY FIGURES
Development of housing projects for own account in the city regions
MNOK 2009 2008 2007
Operating revenues 359 720 768
Earnings before tax (EBT) 21 102 113
Capital invested 498 259 462
Number of employees at 31 Dec 61 64 58
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Continued focus on land acquisition in the form of purchase options
  • Further develop model houses
  • Monitor possible site purchases with financial crisis in mind
  • Most properties acquired in 2009, are options
  • Made decision to begin construction on our two TellHus projects
  • Financial crisis has created fewer opportunities to acquire land favourably than expected
  • Pre-sales and start up of new projects
  • Acquisition of new land
  • Improve our products in terms of climate and environment

 
 
 

collapse ikon Denmark

collapse ikon Construction

DESCRIPTION KEY FIGURES
Nation-wide building and construction operations
MNOK 2009 2008 2007
Operating revenues 1 619 2 073 2 780
Earnings before tax (EBT) 46 13 -88
Backlog of orders 978 1 298 1 881
Number of employees at 31 Dec 486 556 703
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Provide adequate order inventory without compromising profitability
  • Continue implementation of the set of principles “Hoffmanns Rygrad”
  • Keep focus on structured sales and tender phase
  • Increased focus on risk management and financial reporting for business units
  • Ensure a continued high percentage of orders through partnering/integrated cooperation, including through linking key partners closer to us
  • Maintained profitability given tenders, and achieved satisfactory order inventory on par with 2008 despite the market situation
  • “Hoffmanns Rygrad” has become an important element in business strategy in a risky market
  • Structured sales have become an important parameter, with continuous monitoring. Hoffmann perceived as a larger entity with closer proximity to customers than competitors
  • The strategy of regional financial management has led to a sharper focus on risk management and financial reporting on individual projects
  • Higher proportion of contracts that are won on basis other than price (70 percent)
  • Provide adequate profitable orders inventory for 2010 and 2011, focusing on correct pricing in relation to the development of market prices for materials and subcontractors
  • Keep focus on “Hoffmanns Rygrad” and strategy process 2015 with analysis of current situation
  • Maintain increased customer focus through structured sales of the theme «Hoffmann as the solution-oriented partner»
  • Uphold focus on contracts won on basis other than price. Evaluate the cooperation on all new projects, with a view to providing value to customers, partners and Hoffmann
  • Implementation of the "Here at Hoffmann" as well as participative planning in all regions
  • Develop a common Hoffmann-concept in environmental and energy areas

 
 

collapse ikon Property development

DESCRIPTION KEY FIGURES
Development of housing projects for own account. The activities are being scaled down
MNOK 2009 2008 2007
Operating revenues 2,8 50 163
Earnings before tax (EBT) -47 -33 -10
Capital invested 258 291 243
Number of employees at 31 Dec 2 2 9
PRIORITY AREAS IN 2009 ACHIEVED IN 2009 PRIORITY AREAS IN 2010
  • Wait with new projects until market improves
  • Given current market conditions and prospects activities are being downsized
  • Continue downsizing, selling property and unsold dwellings at best possible terms

 
 
 

Year 2009 | Business Areas | The Company | Financial Report | Contact | Legal notice | Editor: Tommy Johansen | Editor-in-Chief: Kai Krüger Henriksen
veidekke.no | veidekke.se | hoffmann.dk | veidekke.com | Community Report 2009 | Annual Report 2009