1. General information

The consolidated accounts for the second quarter of 2009 include Veidekke ASA and its subsidiaries and the Group’s share of associated companies and joint ventures. At the end of the second quarter of 2009, the Group consisted of the same entities as reported in the annual accounts for 2008.

2. Accounting policies

The Group’s financial reporting is carried out in accordance with International Financial Reporting Standards (IFRS) approved by the EU. The quarterly accounts have been drawn up in accordance with IAS 34 Interim Financial Reporting and the Stock Exchange Rules.

The quarterly accounts have been drawn up in accordance with the same accounting policies as the annual accounts for 2008. The following new standards were implemented as of 1 January 2009:

• IFRS 2: Share-based Payment – Vesting conditions and cancellations
• IFRS 8: Operating Segments – Identification of segments
• IAS 1 (Amendment): Presentation of Financial Statements – Revised presentation
• IAS 23 (Amendment): Borrowing Costs – Capitalisation of interest related to the production of qualifying assets
• IAS 27 (Amendment): Consolidated and Separate Financial Statements – Accounting of changes in ownership share in subsidiaries
• IAS 32 (Amendment): Financial Instruments: Presentation

In compliance with the amendments to IFRS 8 and IAS 1, a few changes have been made in the presentation of the quarterly report. The new rules in IFRS 8 do not require any changes in the division into business areas as presented in previous reports prepared in accordance with IAS 14.

Besides the mentioned changes, the new standards have not had any significant impact on the half year financial statement. For further information on the effects of the implementation, reference is made to the report for the first quarter 2009.

On 22 July 2009, the EU approved the interpretation IFRIC 15 regarding the accounting of the sale of real estate, with a requirement for implementation by 1 January 2010. For more information on IFRIC 15, reference is made to the Annual Report for 2008.

The quarterly accounts do not contain all the information that is required for complete annual accounts, and should therefore be read with reference to the consolidated accounts for 2008, which are available on request from the company or electronically at www.veidekke.com.

3. Segment reporting

The Group’s segments are based on its business areas: Construction, Property Development and Industry. Read the segmental results for the second quarter of 2009 .

4. Estimates

Construction and property development projects form a large part of Veidekke’s operations. The accounting of project activities is, to a large degree, based on estimates. The material assessments made in the application of the Group’s accounting policies and the most important sources of uncertainty in the estimates are the same for the second quarter of 2009, as those presented in the annual accounts for 2008 .

5. Operations with significant seasonal fluctuations

Owing to climatic conditions in Norway, the Group’s asphalt and aggregate operations are subject to considerable seasonal fluctuations. Most of the production takes place between April and October, and turnover from these operations therefore accrues during these months. However, expenses relating to operations and maintenance of the production organisation and depreciation, are spread over the whole year. As a result, there will normally be significant fluctuations in the quarterly accounts for the industry division, and the reports for the first, second and third quarters therefore also include figures for a rolling 12-month period for the Group and for the industry division.

			MNOK
	12-month rolling period to June 2009	12-month rolling period to June 2008	2008
Industry division
Turnover	3 074.6	3 195.8	3 292.6
Earnings before tax (EBT)	2.9	105.4	68.1
Group
Turnover	16 988.7	20 307.2	19 395.3
Earnings before tax (EBT)	585.9	1 186.5	815.6

6. Acquisition of businesses and investments

Veidekke made no acquisitions of significance in the second quarter of 2009.

7. Sales of businesses and investments

There were no sales of significance in the second quarter of 2009.

8. Financial instruments

In the second quarter, Veidekke Eiendom AS participated in a capital increase in Hansa Property Group ASA. Veidekke subscribed for 30,000,000 shares at a price of NOK 1.00. After this purchase, Veidekke owns 33,268,107 shares in the company, which corresponds to an ownership share of 9.5 per cent. The shares are entered in the accounts at MNOK 33. The shares are not listed in an active market.

There were no material changes during the period as regards financial risk and the Group’s use of financial instruments. Further details can be found in the Annual Report for 2008 .

9. Equity

Reconciliation of changes in equity in the second quarter of 2009:

		MNOK
	Q2 2009	Q2 2008
Equity at 1 January	2 113.9	2 285.9
Currency conversion differences	-56.0	0.6
IAS 39 - hedging PPP	-0.3	14.8
Earnings after tax	53.2	234.5
Total profit	-3.1	249.9
IFRS 2 – Share-based transactions employees	-11.8	-11.3
Purchases own shares	-	-203.1
Dividends	-334.3	-543.8
Change minority interests	-8.7	1.7
Equity at 30 June	1 756.0	1 779.3

There were no buybacks of shares in the second quarter of 2009.

At the Annual General Meeting on 7 May 2009, it was resolved that 2,254,400 of Veidekke’s own shares should be cancelled. The decision has been submitted to Brønnøysund Register Centre and the creditors’ deadline has expired. The decision is expected to be formally registered in the Brønnøysund Register Centre at the end of August. Following the cancellation, the total number of outstanding shares is 133,704,942, and the company’s share capital will be NOK 66,852,471.

10. Dividends

A total dividend of NOK 2.50 per share for the accounting year 2008 was resolved at the Annual General Meeting on 7 May 2009 . This constitutes a total dividend of MNOK 334.3, which was entered into the accounts in the second quarter of 2009.

11. Post balance sheet events

No events have occurred since the balance sheet date that would have had any significant effect on the submitted accounts.