Nordecon

Investor Presentation • Aug 3, 2023

NORDECON

Investor presentation Q2 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 first half of 2023 was €123,819 thousand, roughly 17% less than in the same period last year, when the figure was €149,256 thousand. The Buildings segment generated revenue of €103,970 thousand and the Infrastructure segment revenue of €19,822 thousand; revenue declined by 19% in the Buildings segment and 4% in the Infrastructure segment. The decrease in both segments was expected and is attributable to market contraction.	Nordecon ended the first half of 2023 with a gross profit of €4,731 thousand (H1 2022: €3,181 thousand). Profitability improved year on year with the group's gross margin rising to 3.8% for the half- year (H1 2022: 2.1%) and 4.5% for the second quarter (Q2 2022: 2.5%). Both operating segments earned a profit in both the second quarter and the first half year and improved their profitability significantly.	The group's administrative expenses for the period were €3,852 thousand. Compared with a year earlier, administrative expenses grew by around 24% (H1 2022: €3,118 thousand) due to growth in staff costs. The ratio of administrative expenses to revenue (12 months rolling) increased year on year, rising to 2.7% (H1 2022: 2.0%).
The group earned an operating profit of €673 thousand in the first half of 2023 (H1 2022: €1,457 thousand). EBITDA for the period was €2,405 thousand (H1 2022: €3,158 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 €256,328 thousand at 30 June 2023, reflecting 16% growth compared to the same period last year. The group signed new contracts of €208,460 thousand during the half year (H1 2022: €89,661 thousand), of which contracts of €123,530 thousand were signed in the second quarter (Q2 2022: €26,494 thousand).	Operating activities in the first half of 2023 produced a net cash inflow of €4,329 thousand (H1 2022: an outflow of €1,955 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 margin of the Buildings segment was 5.0% for the half-year and 4.9% for the second quarter (H1 2022: 3.8% and Q2 2022: 3.4%).

The gross margins of the Infrastructure segment were lower: 0.1% for the half-year and 4.5% for the second quarter (H1 2022: (6.4)% and Q2 2022: (0.3)%).

Figure / Ratio	6M 2021	6M 2022	6M 2023
Revenue (EUR '000)	117 966	149 256	123 819
Revenue change	-14%	27%	-17%
Net profit/loss (EUR '000)	-2 390	26	-1 590
Gross margin	1.1%	2.1%	3,8%
EBITDA margin	0.1%	2.1%	1,9%
Net marqin	-2.0%	0.0%	-1,3%
Administrative expenses to revenue (12 month rolling)	2.2%	2.0%	2.7%

NORDECON

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

Revenue by Geographic Regions

■ Estonia ■ Finland = Ukraine

earned outside Estonia, i.e. in construction volumes for 2% of the group's total year, where we have secured a concrete revenue.

number of small-scale projects .

works, have

In the first half of 2023, revenue Despite the war, Nordecon's Finnish Nordecon did not generate any in include mainly subcontracting revenue and had no ongoing Finland and Ukraine, accounted Ukraine have increased year on revenue from the provision contracts in the Swedish market. Nor did the group generate any revenue in Latvia and Lithuania, where we operate on a project basis.

Order book and revenues

The group's order book stood at €256,328 thousand at 30 June 2023, reflecting 16% growth compared to the same period last year.

The Buildings segment accounted for 80% and the Infrastructure segment for 20% of the total order book (30 June 2022: 85% and 15%, respectively).

The order book of the Buildings segment increased by 9% while the order book of the Infrastructure segment grew by 54% compared with 30 June 2022.

Growth in the order book of the Infrastructure segment was driven by the other engineering subsegment, which has secured mostly wind farm construction contracts.

ORDER BOOK

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

Revenue distribution

The Buildings segment generated revenue of €103,970 thousand and the Infrastructure segment revenue of €19,822 thousand. The corresponding figures for the same period in 2022 were €128,430 thousand and €20,703 thousand.

In the Buildings segment, the halfyear revenues of all subsegments decreased compared with the same period in 2022. The largest revenue contributors are still the public buildings and the apartment buildings subsegments.

In the Infrastructure segment, the largest revenue contributor is still road construction and maintenance although its revenue has decreased year on year by roughly 25%.

■ Environmental engineering 16 16 22 84 84 78 6 M 2021 6 M 2022 6 M 2023 BY SEGMENTS

■Infrastructure

■ Buildings

■ Commercial buildings

■ Apartment buildings

facilities

■ Industrial and warehouse

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

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