Nordecon

Earnings Release • Feb 8, 2024

Investor presentation Q4 2023

BUSINESS MODEL

Industrial buildings

Public buildings

Residential buildings

Commercial buildings

Other infrastructure Environmental engineering Utility networks

Specialist engineering Bridges, viaducts Port construction Rail construction

Road construction and maintenance Road construction Road maintenance

STRATEGIC AGENDA FOR 2023-2027

The group will grow, mostly organically, with a focus on efficient use of resources. In Estonia, we will operate in the building and infrastructure construction as well as housing development segments. In foreign markets (Ukraine, Sweden), we will compete as a general contractor and a provider of concrete works .	We will provide our people with a modern and inspiring work environment and a motivation system that collaboration and initiative. We will improve our profitability by planning and managing our design and construction operations more precisely. We will streamline our work and decision- making processes by implementing modern digital solutions. We will maintain the order books of our different operating segments in balance. We will set our sustainable development goals and adopt an action plan to achieve them.	Revenue will grow by at least 5% per year. fosters Operating margin for the year will be consistently above 3%. Operating profit per employee will increase to at least €10 thousand per year. We will deliver a strong dividend yield for Nordecon's shareholders.
BUSINESS LINES AND MARKETS	ACTIVITIES	FINANCIAL TARGETS

AJAMAJA OFFICE BUILDING AT ROTERMANNI 6

LOCATION Tallinn

customer Rotermann City OÜ

ARCHITECT KOKO architects

construction period April 2019 - April 2021

CONTRACTOR Nordecon AS

PROJECT MANAGER Oleg Kaas

Period In Brief

The group's revenue for 2023 was €278,382 thousand, roughly 14% lower than in 2022, when the figure was €322,860 thousand. The Buildings segment generated revenue of €211,082 thousand and the Infrastructure segment revenue of €67,233 thousand. Revenue declined by 19% in the Buildings Infrastructure segment.	Nordecon ended 2023 with a gross profit of The group's administrative expenses for 2023 €10,326 thousand (2022: €8,495 thousand) and a gross margin of 3.7% (2022: 2.6%). Profitability improved for both operating segments, although the fourth quarter performance of the Buildings segment was weaker than a year earlier. segment, but increased by 8% in the The restructuring of the group's Infrastructure segment, which started in 2022 and was completed in the first half of 2023, has had a significant positive impact	were €8,915 thousand. Compared with 2022, administrative expenses grew by 22% (2022: €7,287 thousand) due to growth in staff costs and an overall rise in the prices of goods and services. The ratio of administrative expenses to revenue (12 months rolling) was 3.2% (2022: 2.3%).
The group earned an operating profit of €556 thousand in 2023 (2022: €2,305 thousand). EBITDA for the period was €3,938 thousand and EBITDA margin was 1.4% (2022: €5,766 thousand and 1.8%). The operating profit and EBITDA for the comparative period were influenced by other income of €1,560 thousand, recognised after the approval of the restructuring plan of Swencn AB.	The group's order book stood at €216,732 thousand at 31 December 2023, reflecting 45% growth compared to the end of 2022. In the fourth quarter, the group signed new contracts of €85,575 thousand (Q4 2022: €25,381 thousand).	Operating activities produced a net cash inflow of €12,877 thousand in 2023 (2022: an inflow of €3,466 thousand). Operating cash flow is increasingly affected by the need to make prepayments to materials suppliers, as well as increased contractual retentions, which extend from 5 to 10% of the contract price.

KOHTLA-JÄRVE SPORTS AND HEALTH CENTRE

LOCATION Kohtla-Järve, Ida-Viru County

customer Kohtla-Järve City Government

ARCHITECT OU Zoroaster

construction period April 2019 - March 2021

CONTRACTOR Nordecon AS

PROJECT MANAGER Oleg Kaas

REVENUE AND OPERATING PROFIT

The gross margins of the Buildings segment were 4.4% for the full year and 3.2% for the fourth quarter of 2023 (2022: 4.1%, Q4: 6.7%).

The gross margins of the Infrastructure segment were 3.1% for the full year and (2.8)% for the fourth quarter (2022: (2.4)%, Q4: (12.1)%).

Figure / Ratio		12M 2021 12M 2022 12M 2023
Revenue (EUR '000)	288 534	322 860	278 382
Revenue change	-2,5%	11,9%	-13.8%
Net profit/loss (EUR '000)	-5 506	-1 441	2 056
Gross margin	1.4%	2,6%	3.7%
EBITDA marqin	-0.3%	1,8%	1.4%
Net marqin	-1,9%	-0.4%	0.7%
Administrative expenses to revenue (12 month rolling)	2.1%	2.3%	3,2%

RAATUSE HEALTH CENTRE

LOCATION Tartu city

customer Tạrtu Kesklinna Perearstikeskus ou

DESIGNER U-Disain OÜ

CONSTRUCTION PERIOD February 2020- August 2021

CONTRACTOR Nordecon Betoon OÜ/ Embach Ehitus OU

PROJECT MANAGER Ahti Kala

Revenue generated outside Despite the ongoing war, Finnish revenues, which Nordecon did not generate any Estonia, mostly in Ukraine and Nordecon's Finland, accounted volumes in for approximately 3% of the group's increased. total revenue in 2023.

Ukraine

concrete works, have decreased.

construction mainly include subcontracting revenue and had no ongoing have revenue from the provision of construction contracts in the Swedish market.

The group operates on a smallscale project basis in Latvia and Lithuania.

Estonia

Finland

Ukraine

Lithuania

Latvia

O

400,000

350,000

300,000

250,000

200,000

150,000

100,000

ORDER BOOK

The group's order book stood at €216,732 thousand at 31 December 2023, reflecting 45% growth compared to the end of 2022.

ORDER BOOK AND REVENUES

The Buildings segment accounts for 96% of the group's order book, while the Infrastructure segment accounts for 4% (31 December 2022: 88% and 12%, respectively).

The order book of the Buildings segment has increased by 58% and that of the Infrastructure segment has decreased by 47% compared with 31 December 2022.

Although the order book has increased, management expects that in 2024 the group's business volumes will decline compared to 2023, mainly due to the sale of Nordecon Betoon OU.

■Order backlog (quarter end)

■Revenue (TTM)

KINDLUSE SCHOOL

LOCATION Rae, Harju County

customer Rae Rural Municipality Government

DESIGNER Sweco Projekt AS

construction period November 2019 — May 2021

CONTRACTOR Nordecon AS

PROJECT MANAGER Silver Sein

REVENUE DISTRIBUTION

The Buildings segment generated revenue of €211,082 thousand and the Infrastructure segment revenue of €67,233 thousand. The corresponding figures for 2022 were €260,585 thousand and €62,048 thousand.

25

75

In the Buildings segment, the largest contributor is still the public buildings subsegment. In other subsegments, have revenues contracted significantly.

The largest revenue contributor in the Infrastructure segment is still road construction and maintenance although in 2023 its revenue decreased by around 17%.

COOP/KONSUM SUPERMARKET

LOCATION Käina, Hiiu County

customer Hiiumaa Consumers Cooperative Association

ARCHITECT DAGOpen Arhitektuuribüroo

CONSTRUCTION PERIOD December 2020— June 2021

CONTRACTOR Nordecon Betoon OÜ

PROJECT MANAGER Reino Mälk

Shareholder	Number of shares	Ownership interest (%
AS Nordic Contractors	16 563 145	51.16
Luksusjaht AS	4 322 342	13.35
Toomas Luman	763 200	2,36
Olegs Radcenko	574 200	1.77
Lembit Talpsepp	374 500	1.16
Nõmme Erahariduse SA	370 370	1,14
SEB Pank AS clients	300 000	0,93
OU Alar Invest	255 000	0,79
Genadi Bulatov	250 600	0,77
Endel Palla	200 000	0,62

Index/equity	1 January 2023*	31 December 2023	+/-
OMX Tallinn	1 766,73	1 768,56	+0,1
NCN1T	0,69 EUR	0,62 EUR	-9,86

* Closing price on the Nasdaq Tallinn Stock Exchange at 31 December 2022

Nordecon AS Tel: +372 615 4400 www.nordecon.com Toompuiestee 35, Tallinn 10149 Estonia

Head of Investor Relations Andri Hõbemägi Tel: +372 615 4400 andri.hobemagi@nordecon.com