Nordecon

Investor Presentation • Nov 2, 2023

NORDECON

Investor presentation Q3 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

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 (Finland, Sweden and Ukraine), we will compete as a general works.	The group will grow, mostly organically, We will provide our people with grow by at least 5% per year. 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. contractor and a provider of concrete 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.	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 the nine months of 2023 was €200,384 thousand, roughly 16% lower than in the same period last year, when the figure was €239,175 thousand. The Buildings segment generated revenue of €165,047 thousand and the Infrastructure segment revenue of €35,295 thousand. Revenue declined by 15% in the Buildings segment and by 20% in the Infrastructure segment. The decrease in both segments was expected and is attributable to market contraction.	Nordecon ended the nine months of 2023 with a gross profit of €8,770 thousand (9M 2022: €5,264 thousand). Profitability improved year on year with the group's gross margin rising to 4.4% for the nine months (9M 2022: 2.2%) and 5.3% for the third quarter (Q3 2022: 2.3%). The two main operating segments earned a profit and improved their profitability in both the third quarter and nine months	The group's administrative expenses for the nine-month period were €6,016 thousand. Compared with a year earlier, administrative expenses grew by around 17% (9M 2022: €5,139 thousand) due to growth in staff costs. The ratio of administrative expenses to revenue (12 months rolling) increased year on year, rising to 2.9% (9M 2022: 2.2%).
The group earned an operating profit of €2,284 thousand in the first nine months of 2023 (9M 2022: €1,340 thousand). EBITDA for the period was €4,854 thousand (9M 2022: €3,920 thousand). 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 €251,155 thousand at 30 September 2023, reflecting 33% growth compared to the same period last year. In the third quarter, the group signed new contracts of €95,301 thousand (Q3 2022: €48,408 thousand).	Operating activities in the nine months of 2023 produced a net cash inflow of €11,037 thousand (9M 2022: an outflow of €205 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 5.3% for the nine months and 5.9% for the third quarter (9M 2022: 3.4% and Q3 2022: 2.7%).

The gross margins of the Infrastructure segment were lower: 2.0% for the nine months and 4.5% for the third quarter (9M 2022: (2.0)% and Q3 2022: 2.0%).

Figure / Ratio	9M 2021 9M 2022		9M 2023
Revenue (EUR '000)	208 894		239 175 200 384
Revenue change	-4%	14,5%	-16,2%
Net profit/loss (EUR '000)	-368	-1 388	-364
Gross marqin	2.3%	2.2%	4.4%
EBITDA margin	1.4%	1.6%	2.4%
Net margin	-0,2%	-0.6%	-0,2%
Administrative expenses to revenue (12 month rolling)	2.1%	2.2%	2.9%

NORDECON

7

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

8

the group's total revenue for year, where we have secured a concrete the nine months of 2023.

number of small-scale projects .

works, have

Revenue generated outside Despite the war, Nordecon's Finnish Nordecon did not generate any Estonia, mostly in Finland and construction - volumes - in include mainly subcontracting revenue and had no ongoing Ukraine, accounted for 2% of Ukraine have increased year on revenue from the provision of construction contracts in the Swedish market.

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

Order book and revenues

The group's order book stood at €251,155 thousand at 30 September 2023, reflecting 33% growth compared to the same period last year.

The Buildings segment accounts for 87%, and the Infrastructure segment for 13% of the group's order book (30 September 2022: 91% and 9%, respectively).

The order book of the Buildings segment increased by 27% while the order book of the Infrastructure segment grew by 86% compared with 30 September 2022.

The order book has grown mainly through new contracts secured by the public buildings subsegment, road construction and maintenance and other engineering subsegments.

NORDECON

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

Infrastructure

Buildings

^{78 75}

^{22 25}

72

28

Environmental engineering

Industrial and warehouse facilities Apartment buildings

Public buildings

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

Share and shareholders

Largest shareholders in Nordecon AS at 30 September 2023

Shareholder	Number of shares	Ownership interest (%)
AS Nordic Contractors	16 563 145	51.16
Luksusjaht AS	4 322 342	13.35
Toomas Luman	732 500	2.26
Olegs Radcenko	574 200	1.77
Lembit Talpsepp	374 500	1.16
Nõmme Erahariduse SA	370 370	1.14
SEB Pank AS kliendid	300 000	0.93
ÖU Alar İnvest	255 000	0.79
Genadi Bulatov	250 600	0.77
Endel Palla	200 000	0.62

Indeks/equity		1 January 2023* 30 September 2023	+ / -
OMX Tallinn	1 766,73	1 855,19	5,01%
- NCN1T	0,69 EUR	0,75 EUR	9,13%

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

NORDECON

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