Dovre Group Oyj

Interim / Quarterly Report • Aug 17, 2023

Dovre Group Plc Half-year financial statement August 17, 2023, at 8.45 a.m.

DOVRE GROUP'S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2023

The figures presented in this half-year financial report are not audited. Last year's corresponding period in parentheses. The Renewable Energy segment, consisting of the operations of the windmill park construction and construction design company Suvic Oy is fully consolidated in the Group's financial statements. The non-controlling interest (49%) is presented as a separate line item in the income statements and balance sheet.

April–June 2023

• Net sales remained stable at EUR 47.3 (47.3) million
  • o Project Personnel: net sales EUR 25.9 (22.4) million increase of 15.7%.
  • o Consulting: net sales EUR 4.0 (4.6) million decrease of -13.5%
  • o Renewable Energy: net sales EUR 17.4 million (20.3) decrease of -14.2 %
• EBITDA EUR 1.8 (1.9) million decrease of -6.5%
• Operating profit EUR 1.5 (1.7) million decrease of -10.5%
• Profit before tax EUR 1.3 (1.7) million decrease of -23.8 %
• Earnings for the shareholders of the parent company EUR 0.8 (1.1) million decrease of -26.4%
• Earnings per share EUR 0.007 (0.010).
• Net cash flow from operating activities EUR 2.9 (-2.6) million.

January–June 2023

• Net sales decreased by –2.1% to EUR 93.1 (95.1) million.
  • o Project Personnel: net sales EUR 50.7 (45.1) million an increase of 12.3%.
  • o Consulting: net sales EUR 9.1 (9.0) million an increase of 1.4%.
  • o Renewable Energy: net sales EUR 33.3 (41.0) million decrease of -18.8%.
• EBITDA decreased to EUR 3.7 (3.8) million decrease of -2.7%
• Operating profit EUR 3.2 (3.4) million decrease of -5.1%
• Profit before tax EUR 2.8 (3.1) million decrease of -12.0%
• Earnings for the shareholders of the parent company EUR 1.8 (2.2) million decrease of -16.5%
• Earnings per share EUR 0.017 (0.020).
• Net cash flow from operating activities EUR 7.1 (-0.6) million.

Outlook for 2023 unchanged (issued on 26 June 2023)

Dovre Group's net sales in 2023 are expected to be in the range of 185 to 195 million euros and the operating profit (EBIT) is expected to be above 7 million euros.

CEO ARVE JENSEN:

H1 2023 was marked by some headwinds, leading to a modest decline in both net sales and profitability compared to the corresponding period last year. Year-on-year fluctuations in foreign currency exchange rates had an impact on the Group's net sales in H1. At fixed currencies, the year-on-year growth of net sales in H1 would have been 3.4% instead a of decrease of -2.1%. In particular, the weakened Norwegian crown had the effect of decreasing net sales. The Renewable Energy segment experienced challenges with fewer and smaller projects, which contributed to an 18.8% decrease in net sales for this segment.

On a positive note, our Project Personnel and Consulting segments experienced growth, with net sales increasing by 12.3% and 1.4%, respectively. This highlights the strength and adaptability of these segments, reaffirming our strategic focus on delivering high-quality services to our clients. In terms of geographical market areas, our largest sales increase occurred in North America, owing primarily to strong activity levels in Canada.

One notable factor impacting our overall revenue and profit during H1 2023 has been currency fluctuations, particularly the weakening of the Norwegian Crown. The effects of Norway's new temporary hiring legislation, which went into effect in April, have had a minor impact on the energy sector's activity level thus far. The public sector, however, has been more noticeably affected. Moreover, geopolitical unrest, surging inflation rates, and soaring energy prices in various parts of the world have all had an impact on consumer demand and increased cost pressures.

Despite the challenges faced in the Renewable Energy sector, we continue to believe in its growth potential. Our long-term outlook remains positive, and we continue to explore opportunities to leverage our expertise and expand our services within the energy sector.

Looking ahead, we recognize that uncertainties persist in the global market. Nevertheless, we still anticipate strong demand for our services in the second half of the year. In addition, we are proactively implementing measures to enhance operational efficiency and drive sustainable profitability.

GROUP'S KEY FIGURES

EUR million	4–6 2023	4–6 2022	Change %	1–6 2023	1–6 2022	Change %	1–12 2022
Net sales	47.3	47.3	0.0%	93.1	95.1	-2.1%	203.0
EBITDA	1.8	1.9	-6.5%	3.7	3.8	-2.7%	9.5
% of net sales	3.7%	4.0%		4.0%	4.0%		4.7%
Operating result	1.5	1.7	-10.5%	3.2	3.4	-5.1%	8.5
% of net sales	3.2%	3.5%		3.4%	3.5%		4.2%
Profit before taxes	1.3	1.7	-23.8%	2.8	3.1	-12.0%	7.4
% of net sales	2.8%	3.6%		3.0%	3.3%		3.7%
Earnings for the shareholders of the parent company	0.8	1.1	-26.4%	1.8	2.2	-16.5%	5.2
% of the net sales	1.6%	2.2%		1.9%	2.3%		2.5%
Net cash flow from operating activities	2.9	-2.6	211.3%	7.1	-0.6	1296.9%	2.6
Net debt	-6.4	-1.1	-458.8%	-6.4	-1.1	458.8%	-3.0
Debt-equity ratio (Gearing), %	-18.5%	-3.6%		-18.5%	-3.6%		-8.8%
Earnings per share, EUR
Undiluted	0.007	0.010	-26.4%	0.017	0.020	-16.5%	0.049
Diluted	0.007	0.010	-26.4%	0.017	0.020	-16.5%	0.049

NET SALES

Net sales in Q2

During Q2 2023, our net sales reached EUR 47.3 million, remaining steady compared to the same quarter last year.

Project Personnel accounted for 55% (47%), while Consulting represented 8% (10%) and Renewable Energy contributed 37% (43%) to the Group's net sales.

Project Personnel's net sales witnessed a significant uptick of 15.7%, totaling EUR 26.0 million (EUR 22.4). The demand for Dovre Group's services remained consistently high, particularly in Norway. On the other hand, the net sales in Consulting experienced a decline of -13.5%, amounting to EUR 4.0 million (EUR 4.6). Additionally, Renewable Energy's net sales decreased by -14.2%, reaching EUR 17.4 million (EUR 20.3).

Net sales in H1

Our total net sales for H1 2023 reached EUR 93.1 million, showing a decrease of 2.1% compared to H1 2022.

Net sales by revenue type demonstrated strong performance in the Project Personnel segment, which grew by 12.3% in H1 2023. However, the Renewable Energy segment experienced an 18.8% decrease in net sales, impacting the overall net sales.

In H1 2023, Project Personnel witnessed a 12.3% increase in net sales, reflecting strong demand for our services and expertise. Despite some challenges, Consulting maintained a steady performance, with a 1.4% growth in net sales during H1 2023. In H1 2023, Renewable Energy experienced a temporary setback with an 18.8% decrease in net sales due to certain market challenges.

In terms of market areas, we observed significant growth of 100.6% in the AMERICAS, while EMEA showed a decrease of 5.9%, mainly caused by negative currency fluctuations. APAC experienced a 40.2% decrease in net sales, attributed to the heightened activity in finalizing the substantial Castberg project during the comparative period last year.

Net sales by reporting segment	4–6	4–6	Change	1–6	1–6	Change	1–12
EUR million	2023	2022	%	2023	2022	%	2022
Project Personnel	25.9	22.4	15,7	50.7	45.1	12,3	90.6
Consulting	4.0	4.6	-13,5	9.1	9.0	1,4	18.2
Renewable Energy*	17.4	20.3	-14,2	33.3	41.0	-18,8	94.2
Group total	47.3	47.3	0,0	93.1	95.1	-2,1	203.0

Net sales by market area	4–6	4–6	Change	1–6	1–6	Change	1–12
EUR million	2023	2022	%	2023	2022	%	2022
EMEA	36.5	39.2	-6,9	74.4	79.1	-5,9	171.7
AMERICAS	7.8	3.6	118,7	13.0	6.5	100,6	16.0
APAC	3.0	4.5	-33,6	5.7	9.6	-40,2	15.3
Group total	47.3	47.3	0,0	93.1	95.1	-2,1	203.0

Dovre Group's market areas are:

• EMEA: Norway, Middle East, Finland
• AMERICAS: Canada, US
• APAC: Singapore

PROFITABILITY

Profitability in Q2

The Group's EBITDA in Q2 was EUR 1.8 (1.9) million. The Group's operating profit decreased by 10.5% to EUR 1.5 (1.7) million. Project Personnel's operating profit was EUR 0.9 (0.9) million, Consulting's operating result was EUR 0.4 (0.6) million and Renewable Energy's operating result was EUR 0.5 (0.4) million. The operating result of the Group's Other functions was EUR -0.2 (- 0.1) million.

Material and service expenses decreased to EUR 15.5 (19.3) million. Employee benefit expenses increased to EUR 25.3 (23.9) million. Other operating expenses totaled EUR -4.7 (-2.3) million.

Profitability in H1

The Group's EBITDA in H1 was EUR 3.7 (3.8) million. In H1, the Group's operating profit declined to EUR 3.2 (3.4) million. Project Personnel's operating profit was EUR 2.1 (2.1) million, Consulting's operating profit was EUR 0.9 (0.9) million and Renewable Energy's operating result was 0.7 (0.9) million euros. The operating loss of the Group's Other functions was EUR -0.4 (- 0.3) million.

Material and service expenses decreased to 29.7 (37.9) million euros. Employee benefit expenses increased to EUR 52.8 (49.4) million, reflecting the growth of the business. Other operating expenses increased to -7.1 (-4.1) million.

EBITDA	4–6	4–6	Change	1–6	1–6	Change	1–12
EUR million	2023	2022	%	2023	2022	%	2022
Project Personnel	1.0	1.0	-0,8	2.3	2.3	2,4	4.7
Consulting	0.4	0.6	-37,5	0.9	0.9	-3,1	2.5
Renewable Energy	0.6	0.5	19,3	0,8	1.0	-15,0	2.9
Other functions	-0.2	-0.1	-36,0	-0.4	-0.3	-30,4	-0.7
Unallocated *)	0.0	-0.1	107,9	0.0	-0.1	99,1	0.0
Group total	1.8	1.9	-6,5	3.7	3.8	-2,7	9.5

Operating result	4–6	4–6	Change	1–6	1–6	Change	1–12
EUR million	2023	2022	%	2023	2022	%	2022
Project Personnel	0.9	0.9	-2,1	2.1	2.1	1,7	4.3
Consulting	0.4	0.6	-37,6	0.9	0.9	-2,0	2.5
Renewable Energy	0.5	0.4	12,6	0.7	0.9	-22,1	2.7
Other functions	-0.2	-0.1	-31,1	-0.4	-0.3	-26,0	-0.7
Unallocated *)	-0.1	-0.1	43,1	-0.1	-0.2	44,8	-0.3
Group total	1.5	1.7	-10,5	3.2	3.4	-5,1	8.5

* Unallocated expenses include amortization of customer agreements and relations.

The Group's result before taxes decreased to EUR 2.8 (3.1) million. The result included EUR -0.4 (-0.2) million of finance items.

The earnings for the shareholders of the parent company were EUR 1.8 (2.2) million and the share of the non-controlling interest (holders of the 49% minority in Suvic) totaled EUR 0.2 (0.2) million.

The Group's earnings per share were EUR 0.017 (0.020). The Group's return on average capital employed before taxes (ROI) was 15.1 (18.6) %.

CASH FLOW, FINANCING, AND INVESTMENTS

On June 30, the Group's balance sheet total was EUR 90.3 (81.5) million. The Group's cash and cash equivalents totaled EUR 12.5 (9.0) million. In addition, the Group has an unused credit limit of EUR 8.4 million.

At the end of June, the equity ratio was 41.0 (42.3) %, and the debt-equity ratio (gearing) was -18.5 (-3.6) %. The interest-bearing liabilities amounted to EUR 6.1 (7.9) million, accounting for 6.8 (9.6) % of the Group's shareholders' equity and liabilities. A total of EUR 4.4 (4.4) million of the Group's interest-bearing liabilities were current and a total of EUR 1.7 (3.4) million were noncurrent.

In H1 2023, net cash flow from operating activities was EUR 7.1 (0.6) million, which includes EUR 5.4 (-3.2) million change in working capital. Net cash flow from investing activities was EUR -0.3 (-0.3) million. Net cash flow from financing activities was EUR -5.0 (0.3) million.

The balance sheet goodwill totaled EUR 19.9 (21.2) million on June 30, 2023. No indications of impairment exist.

PERSONNEL

During H1 2023, the average number of personnel employed by the Group was 817 (801). The increase in the average number of employees was driven by organic growth in all business segments.

Project Personnel employed on average 665 (670), Consulting 104 (96) and Renewable Energy 46 (34) people in H1 2022. In the Project Personnel business area 29 (29) % of employees were independent contractors.

Personnel	4–6	4–6	Change	1–6	1–6	Change	1–12
Average	2023	2022	%	2023	2022	%	2022
Project Personnel	684	677	1,0	665	670	-0,8	642
Consulting	101	99	1,7	104	96	7,6	98
Renewable Energy	50	34,0	46,1	46	33,7	37,6	38
Other functions	2	1	133,3	2	1	116,7	1
Group total	837	811	3,1	817	801	2,0	779

The number of people employed at the end of June increased. On June 30, 2023, Dovre Group employed 862 (815) people, 706 (679) of whom were employed by Project Personnel, 99 (101) by Consulting, 55 (34) by Renewable Energy and 2 (1) by other functions.

GROUP MANAGEMENT

There were no changes in the Group Executive Team in H1 2023. At the end of June, Dovre Group's Group Executive Team consisted of Arve Jensen (CEO), Stein Berntsen (President, Consulting), Sirpa Merelä (CFO), and Miko Olkkonen (Vice President Finland).

The Annual General Meeting of 30 March 2023 re-elected Ilari Koskelo, Antti Manninen, Svein Stavelin, and Sanna Outa-Ollila as members of the Board of Directors. Convening after the AGM, the Board elected Svein Stavelin as Chairman of the Board and Ilari Koskelo as Vice Chairman.

SHARES, SHAREHOLDERS, AND STOCK OPTIONS

Share capital and trading

Dovre Group Plc has one series of shares. Each share entitles its holder to one vote. Dovre Group Plc's shares are listed on Nasdaq Helsinki Oy.

There were no changes in the share capital or in the number of shares during the review period. On June 30, 2023, Dovre Group's share capital was EUR 9,603,084.48, and the total number of shares was 105,956,494. The average number of shares during the period was 105,956,494 shares.

In H1 2023, altogether 8.7 (19.1) million Dovre Group shares were exchanged on the Nasdaq Helsinki Ltd., corresponding to a trade of approximately EUR 5.1 (12.4) million. The volumeweighted average price of Dovre share was 0.59 (0.65), the lowest quotation was EUR 0.47 (0.55) and the highest was EUR 0.56 (0.80). On June 30, 2023, the closing quotation was EUR 0.48 (0.57). The period-end market capitalization was approximately EUR 51.3 (60.7) million.

Own shares

There were no changes in the number of Dovre Group's treasury shares during the review period. At the end of June 2023, Dovre Group Plc held 236,725 of its own shares, representing approximately 0.22% of all the company's shares and votes.

Shareholders and holdings of the Board of Directors and the CEO

On June 30, 2023, the number of registered shareholders of Dovre Group Plc totaled 6,215 (6,183), including 8 (10) nominee-registered holders. The share of foreign and nomineeregistered shares was 5.8 (5.3) % of the Group's shares.

On June 30, 2023, members of the Group's Board of Directors and the CEO held, including holdings through controlled companies and family members living in the same household, a total of 9,023,365 (8,742,218) shares in the company, representing 8.5 (8.2) % of all shares.

Name	Shares, pcs	Percentage of shares
Svein Stavelin	334,613	0.3
Ilari Koskelo	7,365,000	7.0
Antti Manninen	533,485	0.5
Sanna Outa-Ollila	10,000	0.0
Board members, total	8,243,098	7.7
CEO Arve Jensen	574,120	0.5
Total	9,023,365	8.5

Holdings of Board of Directors and CEO 30.6.2023

Shareholder agreements

Dovre is not aware of any shareholder agreements pertaining to share ownership or the use of voting rights.

Long-term incentive plans

The long-term incentive program has been extended to 2022-2025. The remuneration is based on annually set performance conditions and the key metric is operating profit. The remuneration can be paid in shares or cash subject to the Board's decision. The executive is responsible for personnel income tax on awards. The shares or cash will be awarded when the vesting period ends at the beginning of 2025.

ANNUAL GENERAL MEETING AND THE AUTHORIZATIONS OF THE BOARD OF DIRECTORS

Dovre Group Plc's Annual General Meeting (AGM) was held on March 30, 2023. The AGM adopted the financial statements and consolidated financial statements for 2022 and discharged the members of the Board of Directors and the CEO from liability for the financial year ending on December 31, 2022.

The AGM also decided on the composition and remuneration of the Board of Directors, as well as the election of the auditor.

In accordance with the Board's proposal, the Annual General Meeting decided that no dividend will be paid for the 2022 financial year.

In accordance with the Board's proposal, the Annual General Meeting resolved to approve the remuneration report for the financial year of 2022.

The AGM decided that the number of Board members be set at four (4). Svein Stavelin, Ilari Koskelo, Antti Manninen, and Sanna Outa-Ollila were re-elected as members of the Board.

The Annual General Meeting resolved that the chairman of the Board is paid EUR 40,000, the vice chairman of the Board EUR 33,000, and each other member of the Board EUR 25,000 per year. The annual compensation is to be paid in cash. In addition, reasonable travel expenses are also compensated.

The AGM elected Audit firm BDO Oy as the Company's auditor. BDO Oy has informed that Authorized Public Accountant Henrik Juth will be the principal auditor. The auditor's fee shall be paid according to the approved invoice of the auditor.

The AGM authorized the Board of Directors to decide on the repurchase of the Company's own shares and to decide on the issuance of new shares and/or the conveyance of own shares held by the Company and/or the granting of special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act. Both authorizations cover a maximum of 10,100,000 shares, which corresponds to approximately a maximum of 9.5% of the total number of shares in the company. The shares may be repurchased to be used as consideration in possible acquisitions or other arrangements related to the Company's business, to finance investments or as part of the Company's incentive program or to be held, otherwise conveyed, or cancelled by the Company.

The authorizations are valid until June 30, 2024, and revoke the previously granted, corresponding authorizations.

The decisions of the General Meeting are available in full at Dovre's website at https://www.dovregroup.com/

BUSINESS SEASONALITY

Dovre Group's Renewable Energy business has stronger seasonality than the other two businesses because most of its projects are carried out during the summer months. As the segment fixed costs spread evenly throughout the year, its operating profit is seasonally at its lowest in Q1 and at its highest in Q3.

The Project Personnel and Consulting businesses are carried out more evenly during the year with limited seasonal variations.

SHORT-TERM RISKS AND UNCERTAINTIES

In the Project Personnel business area, the Group's most significant risks include the cyclicality of its clients' business. Market developments in Norway are particularly important for Project Personnel due to the business area's strong position in the Norwegian market. In addition, expansion into new client segments requires expenditure and includes risks. The business area's other challenges are found in maintaining its competitiveness and profitability. The Project Personnel business is project-based by nature, thus adding an element of uncertainty to forecasting. From time to time, there might be a local dependence on one major project or client.

Dovre Group is responsible for the work performed by its consultants. However, the company has no overall responsibility for project delivery.

In the Consulting business area, general economic uncertainty does not have as direct an impact on the demand for the Group's services. This is mainly because one of the Group's main clients, the Norwegian public sector, aims to invest counter-cyclically. Project delivery involves minor risks due to both clients and the Group's own personnel, such as project delays or the loss of key personnel.

In the Renewable Energy business area, Suvic has in its normal operations various contractual risks depending on the differences in scope of work for each. These risks are mitigated through performance and various guarantees and insurances.

Dovre Group holds a minority share in SaraRasa Bioindo Pte. Ltd. (Bioindo), a company that produces pellets from wood residue. Bioindo's production unit is in Indonesia and is thus exposed to high country risk. Other significant risks include commercial agreements, especially feedstock purchase and end-product sale agreements. Dovre Group Plc holds 19.9% of SaraRasa's shares and presents the ownership as a financial asset at fair value through profit and loss.

The Group's reporting currency is the euro. The Group's most important functional currencies are the Norwegian crown, the Canadian dollar, the Singaporean dollar, and the US dollar. Although the Group's sales and corresponding expenses are mainly in the same currency, currency fluctuations can affect the Group's net sales and operating results. Foreign currencydenominated assets and liabilities can also result in foreign exchange gains or losses.

In addition to the above, the current geopolitical situation, high inflation, and high energy prices are also adding risk to our business.

OTHER EVENTS DURING THE REVIEW PERIOD

Suvic signed an EPC contract to build a 32 MW solar farm

In March, Suvic Oy signed an EPC contract with CPC Finland Oy valued at about 18 million euros to build Lakari solar park. The solar park has a maximum output capacity of 32 MW and therefore it is the largest solar park in Finland under construction and when in operation. The yearly production is estimated to be about 32 000 MWh. The Lakari project constitutes a significant expansion into a new business area for Dovre Group.

The solar park will be in Lakari, near the city of Rauma, and it will cover an area of about 40 hectares. The construction work will commence in the spring of 2023 and the project is expected to be ready in the beginning of 2024.

With this significant new contract Suvic's order backlog for 2023 will be about 50 million euros. At the same time Suvic shows that it can expand into new areas of renewable energy construction.

Dovre continues to execute its strategy in the renewables industry by founding a project development company Renetec Oy in March together with top experts in the field, Janne Mielck and Juhani Kanerva.

The company will initially focus on land sourcing, project development and construction management of new sites for industrial scale solar power plants, as well as operating and managing parks already in production. Renetec also offers advisory and consulting, such as feasibility studies and management consulting for energy companies, industrial stakeholders, and investors. The company's market area is Europe.

Renetec aims to develop projects on its own as well as in cooperation with other project developers and other stakeholders in the market. In our view, partnering is an essential success factor allowing the projects to be run with improved resources, credibility, and skills.

Suvic to Build Foundations and Internal Grid for Lappfjärd Wind Farm Extension

Suvic has continued the construction of the Lappfjärd wind farm for Prime Capital with CPC Finland. The extension of Lappfjärd will be built in the same area where 31 foundations and an internal grid were built by Suvic and commissioned in early 2023. In the extension part foundations and an internal power grid will be built for eight wind turbines. The land area consists of bed rock and enables all new turbine sites to be constructed as rock anchor foundations.

Suvic to Build Infrastructure, Foundations, and Cabling for 14 Wind Turbines in Sandbacka Wind Farm

The infrastructure work at Sandbacka will be carried out using Suvic's own land construction equipment.

The project involves constructing infrastructure for 14 wind turbines, including the construction of the foundations and the internal grid. Sandbacka wind farm covers an area of approximately 680 hectares.

All the foundations for the project will be constructed as gravity foundations, with 10 units in the municipality of Uusikaarlepyy and 4 units in the municipality of Vöyri. The total capacity of Sandbacka wind farm is approximately 63 MW. The project is commissioned by Prime Capital.

CFO Sirpa Merelä's Resignation

Dovre Group's CFO Sirpa Merelä (former Haavisto) submitted her resignation to the company for personal reasons. She will leave her position by the end of September.

"We regret Sirpa's decision to leave the company", says Arve Jensen, CEO of Dovre Group. "Sirpa has done a good job and I would like to thank her for her contribution and wish her all the best in the future."

Negative profit warning: Dovre Group Plc will lower its 2023 guidance for net sales and operating profit

On June 26, 2023, Dovre Group Plc issued a negative profit warning, indicating a revision of its 2023 guidance for net sales and operating profit. The company's new guidance projects 2023 net sales between 185 to 195 million euros, with operating profit (EBIT) expected to exceed 7 million euros. This revision comes after the previous guidance, released on April 27, 2023, anticipated net sales improvement over 2022, and operating profit on par with the previous year.

The reason for the lowered guidance is the reduced number and smaller size of new projects in the Finnish Renewable Market sector combined with the weakening of the Norwegian Crown by about 10% year-on-year. The demand for Dovre's Project Personnel and Consulting business areas has remained solid and these two segments combined will achieve their 2022 performance level in both net sales and operating profit without currency impact.

EVENTS AFTER THE REVIEW PERIOD

Dovre Group appoints new CFO

Dovre Group has appointed Mr. Hans Sten (M.Sc. Econ.) as the new CFO as of September 1, 2023.

Previously he has worked for KPMG Oy, Avara Oy, Kotikatu Group Oy and Kiinteistömaailma Oy. Hans has extensive experience as a CFO and as a Board member in various companies.

Hans reports to CEO Arve Jensen and is a member of the Dovre Group's Executive team, which will consist of the following persons: Hans Sten, Stein Berntsen, Miko Olkkonen and Arve Jensen.

"I welcome Hans and look forward to working with him to further strengthen our financial performance", says Arve Jensen, CEO of Dovre Group.

Espoo, August 17, 2023

DOVRE GROUP PLC BOARD OF DIRECTORS

For additional information, please contact:

Dovre Group PLC

Arve Jensen, CEO arve.jensen@dovregroup.com tel. +47 90 60 78 11

Sirpa Merelä, CFO sirpa.merela@dovregroup.com tel. +358 20 436 2000

Financial reporting in 2023

Dovre Group releases its Q3 trading statement for January 1 – September 30, 2023, on Wednesday, October 26, 2023.

Distribution Nasdaq Helsinki Ltd Major media www.dovregroup.com

The figures presented in this half-year financial report are not audited.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS

	1–6	1–6	Change	1–12
EUR thousand	2023	2022	%	2022
NET SALES	93,106	95,139	-2.1	202,971
Other operating income	59	0		368
Material and services	-29,690	-37,871	21.6	-86,022
Employee benefit expenses	-52,732	-49,422	-6.7	-98,448
Depreciation and amortization	-492	-424	-16.2	-996
Other operating expenses	-7,051	-4,052	-74.0	-9,404
OPERATING RESULT	3,200	3,371	-5.1	8,467
Financing income	306	77	296.1	313
Financing expenses	-737	-300	-145.5	-1,352
RESULT BEFORE TAX	2,769	3,148	-12.0	7,428
Tax on income from operations	-788	-744	-5.9	-1,618
RESULT FOR THE PERIOD	1,981	2,404	-17.6	5,811
RESULT FOR THE PERIOD ATTRIBUTABLE TO:
Equity holders of the parent	1,813	2,171	-16.5	5,152
Non-controlling interest	168	233	-28.0	659
Total	1,981	2,404	-17.6	5,811
EARNINGS PER SHARE FOR RESULT
ATTRIBUTABLE TO THE EQUITY HOLDERS OF
THE PARENT Basic, result for the period	0,017	0,020	-16.5	0,049
Diluted, result for the period	0,017	0,020	-16.5	0,049
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME, IFRS
RESULT FOR THE PERIOD	1,981	2,404	-17.6	5,811
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be classified to
profit or loss in subsequent periods:
Translation differences	-1,822	726		346
Other comprehensive income for the period,
net of tax	-1,822	726		346
TOTAL COMPREHENSIVE INCOME FOR THE	159	3,129		6,156
PERIOD
COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO:
Equity holders of the parent	-8	2,896		5,498
Non-controlling interest	168	233		659
Total	159	3,129		6,156
Average number of shares	1–6	1–6		1–12
	2023	2022		2022
Basic	105,956,494	105,956,494		105,956,494
Diluted	105,956,494	105,956,494		105,956,494

Number of shares, period end	30 Jun 2023	30 Jun 2022	31 Dec 2022
Basic	105,956,494	105,956,494	105,956,494
Diluted	105,956,494	105,956,494	105,956,494

CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS

EUR thousand	30 Jun	30 Jun	Change	31 Dec
	2023	2022	%	2022
ASSETS
Non-Current assets
Intangible assets	2,074	2,641	-21.5	2,452
Goodwill	19,887	21,200	-6.2	21,017
Tangible assets	2,384	1,244	91.6	1,809
Financial assets	1,854	1,906	-2.7	1,854
Deferred tax assets	326	190	72.0	471
Non-Current assets	26,526	27,180	-2.4	27,604
Current assets
Inventories	1,854	1,983	-6.5	1,530
Trade receivables and other receivables	49,456	43,315	14.2	42,136
Tax receivable, income tax	1	4	-79.1	0
Cash and cash equivalents	12,495	9,006	38.7	11,229
Current assets	63,806	54,308	17.5	54,895
TOTAL ASSETS	90,332	81,489	10.9	82,499
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent
Share capital	9,603	9,603	0.0	9,603
Reserve for invested non-restricted equity	14,066	14,066	0.0	14,066
Fair value reserve	2,869	2,869	0.0	2,869
Treasury shares	-237	-237	0.0	-237
Translation differences	-4,383	-2,180	-101.0	-2,561
Retained earnings	12,509	7,715	62.2	10,696
Total equity attributable to the equity holders of the parent	34,427	31,835	8.1	34,435
Non-controlling interest	62	-508	112.2	-106
Equity	34,489	31,326	10.1	34,329
Non-current liabilities
Deferred tax liability	926	978	-5.3	947
Non-current liabilities, interest-bearing	1,668	2 621	-36.3	1,979
Non-current provisions	1,252	757	65.3	1342
Other non-current liabilities	390	0	48.5	490
	4,236	4,356	-2.8	4 758
Other non-current liabilities
Current liabilities
Short-term liabilities, interest-bearing	4,439	5,242	-15.3	6 225
Trade payables and other liabilities	46,488	39,634	17.3	35 568
Tax liability, income tax	680	930	-26.9	1 619
Current liabilities	51,606	45,806	12.7	43 412
TOTAL EQUITY AND LIABILITIES	90,332	81,489	10.9	82 499

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, IFRS

• a. Share Capital
• b. Reserve for non-restricted equity
• c. Fair value reserve
• d. Treasury shares
• e. Translation differences
• f. Retained earnings
• g. Shareholders' equity total
• h. Non-controlling interest
• i. Total

EUR thousand	a)	b	c)	d)	e)	f)	g)	h)	i)
SHAREHOLDERS' EQUITY Jan. 1, 2023	9,603	14,066	2,869	-237	-2,561	10,696	34,435		-106 34,329
Comprehensive income
Result for the period						1,813	1,813	168	1,981
Other comprehensive income Items that may be reclassified to profit and loss in subsequent periods:
Translation differences					-1,822		-1,822		0
Total comprehensive income	0	0	0	0	-1,822	1,813	-8	168	159
SHAREHOLDERS' EQUITY Jun 30, 2023	9,603	14,066	2,869	-237	-4,383	12,509	34,427		62 34,489
EUR thousand	a)	b)	c)	d)	e)	f)	g)	h)	i)

EUR thousand	a)	b)	c)	d)	e)	f)	g)	h)	i)
SHAREHOLDERS' EQUITY Jan. 1, 2022	9,603	14,066	2,869	-237	-2,906	5,544	28,938		-496 28,442
Comprehensive income
Result for the period						2,171	2,171	233	2,404
Other comprehensive income Items that may be reclassified to profit and loss in subsequent periods:
Translation differences					726		726		726
Total comprehensive income	0	0	0	0	726	2,171	2,896	233	3,129
Transactions with shareholders
Capital loan								-245	-245
Total transactions with shareholders	0	0	0	0	0	0	0	-245	-245
SHAREHOLDERS' EQUITY Jun 30, 2022	9,603	14,066	2,869	-237	-2,180	7,715	31,834		-508 31,326

CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS

EUR thousand	1–6 2023	1–6 2022	Change, %	1–12 2022
Cash flow from operating activities
Operating result	3,200	3,371	-5.1	6,069
Adjustments:
Depreciation / Amortization	492	424	16.2	854
Adjustments, total	492	424	16.2	854
Changes in working capital
Trade and other receivables, increase (-) / decrease (+)	-7,437	-12,591	40.9	-11,609
Inventories, increase (-) / decrease (+)	-324	-1,314	75.4	-861
Trade and other payables, increase (+) / decrease (-)	13,186	10,736	22.8	7,889
Changes in working capital, total	5,425	-3,169	271.2	-4,581
Interest paid	-168	-93	-81.4	-282
Interest received	154	13	1 106.3	101
Other financial expenses paid and received	-493	-277	-78.3	-916
Income taxes paid	-1,463	-866	-68.9	-1,234
Net cash generated by operating activities	7,147	-597	1 296.9	2,552
Cash flow from investing activities
Investments in tangible and intangible assets	-168	-96	-74.8	-175
Loan receivables, increase (-) / decrease (+)	-100	-245	59.2	0
Net cash generated by financing activities	-268	-341	21.4	-175
Cash flow from financing activities
Proceeds from non-current loans	0	0		490
Repayments of non-current loans	-1,300	-200	-550.0	-400
Proceeds (+) / repayments (-) from current credit limits	-3,528	760	-564.3	-30
Repayments of leasing liabilities	-250	-223	-12.2	-638
Dividends paid	0	0		-23
Net cash generated by financing activities	-5,078	337	-1 607.3	-601
Translation differences	-535	108	-597.1	-47
Change in cash and cash equivalents	1,265	-494	356.3	1,729
Cash and cash equivalents at beginning of the period	11,229	9,500	18.2	9,500
Cash and cash equivalents at end of the period	12,495	9,006	38.7	11,229

NOTES TO THE HALF-YEAR FINANCIAL REPORT

The half-year financial report has been prepared in line with IAS 34 and, apart from the additions below, the same accounting principles have been applied as in the 2022 financial statements. Key indicator calculations remain unchanged and have been presented in the 2022 financial statements.

The amendments and additions to the IFRS standards that came into force at the beginning of 2022 did not have a material effect on the consolidated financial statements.

1. OPERATING SEGMENTS

The Group has three reporting segments that are also the Group's strategic business areas:

• Project Personnel business area provides project personnel for engineering, construction, and commissioning for large investment projects in Oil &Gas and other energy-related industries worldwide.
• Consulting business area provides project management consulting, project personnel, and project management systems in non-energy related investment projects mainly in Nordic countries.
• Renewable Energy provides engineering, construction design, and construction services for wind farm projects and other zero-carbon projects in the Nordic and Baltic countries.

The Group's segment information is based on internal management reporting prepared in accordance with IFRS standards. The Group does not allocate the parent company's intra-Group charges to segments for the purposes of segment reporting.

NET SALES
EUR thousand	1–6/2023	1–6/2022	Change	1–12/2022
Project Personnel	50,676	45,123	12,3 %	90,649
Consulting	9,099	8,975	1,4 %	18,156
Renewable Energy	33,331	41,041	-18,8 %	94,165
Total	93,106	95,139	-2,1 %	202,971
EBITDA
EUR thousand	1–6/2023	1–6/2022	Change	1–12/2022
Project Personnel	2,344	2,290	2,4 %	4,724
Consulting	914	944	-3,1 %	2,471
Renewable Energy	818	963	15,0 %	2,933
Other functions	-383	-294	-30,4 %	-660
Unallocated	-1	-108	99,1 %	-4
Total	3,692	3,794	-2,7 %	9,464
OPERATING RESULT
EUR thousand	1–6/2023	1–6/2022	Change	1–12/2022
Project Personnel	2,084	2,050	1,7 %	4,288

Project Personnel	2,084	2,050	1,7 %	4,288
Consulting	912	931	-2,0 %	2,457
Renewable Energy	718	922	22,1 %	2,742
Other functions	-394	-313	-26,0 %	-681
Unallocated	-121	-220	44,8 %	-338

Total	3,200	3,371	-5,1 %	8,467
Unallocated expenses include amortization of customer agreements and relations and expenses recorded because of the adaptation of IFRS 16.
PERSONNEL Average number of personnel	1–6/2023	1–6/2022	Change	1–12/2022
Project Personnel	665	670	0,8 %	642

Total	817	801	-2,0 %	779
Other functions	2	1	-116,7 %	1
Renewable Energy	46	34	-37,6 %	38
Consulting	104	96	-7,6 %	98
Project Personnel	665	670	0,8 %	642

In the Project Personnel business area, 28 (29) % of personnel were independent contractors.

2. NET SALES

NET SALES BY REVENUE TYPE

EUR thousand	1–6/2023	1–6/2022	Change	1–12/2022
Services	59,410	53,785	10,5 %	108,007
License revenue	294	213	37,9 %	592
Maintenance	71	100	-28,9 %	207
Projects	33,331	41,041	-18,8 %	94,165
Total	93,106	95,139	-2,1 %	202,971

NET SALES BY DOMICILE OF THE COMPANY

EUR thousand	1–6/2023	1–6/2022	Change	1–12/2022
EMEA	74,363	79,065	-5,9 %	171,657
AMERICAS	13,004	6,482	100,6 %	15,987
APAC	5,740	9,592	-40,2 %	15,326
Total	93,106	95,139	-2,1 %	202,971

3. ACQUISITIONS

There were no acquisitions in review or comparison period.

4. GOODWILL

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Acquisition cost, Jan.1	21,200	20,898	20,898
Translation differences (+/-)	-1,312	302	119
Book value	19,887	21,200	21,017

Dovre Group's goodwill is divided into cash-generating units as follows:

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Project Personnel	15,600	16,912	16,729
Consulting	1,023	1,023	1,023
Renewable Energy	3,265	3,265	3,265
Total	19,887	21,200	21,017

5. FINANCIAL ASSETS

EUR thousand	30/06/2023	30/06/2022	31/12/2022
Unquoted equity investment	1,056	1,056	1,056
Fund investments	798	850	798
Book value	1,854	1,906	1,854

Unquoted equity investment includes Dovre Group Plc's ownership in SaraRasa Bioindo Pte. Ltd. (Bioindo). Dovre Group Plc's ownership was 19.86% at period end. Dovre Group's investment in Bioindo is not part of the Group's core business. The category of the investment's fair value measurement is Level 3.

Fund investments include the mutual fund units of Dovre's subsidiary Suvic Oy. The category of the investment's fair value measurement is Level 1.

6. TRADE AND OTHER RECEIVABLES

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Trade receivables	35,380	35,128	30,781
Valuation allowance for trade receivables	-228	-24	-237
Other receivables	2,366	473	821
Percentage of completion revenue
recognition	9,511	5,801	8,992
Accrued income on sales	1,354	1,025	1,072
Other prepayments	1,074	912	688
Total	49,456	43,315	42,116

Aging analysis of trade receivables

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
No due	28,922	32,113	22,143
Overdue
1-30 days	1,343	505	3,103
31-60 days	2,259	1,293	2,696
61-90 days	472	738	776
Over 90 days	2,384	479	2,063
Total	35,380	35,128	30,781

7. NON-CURRENT LIABILITIES

Non-current financial liabilities

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Non-current loans from financial institutions	0	1,300	900
Non-current lease liabilities	1,668	828	1,079
Total	1,668	2,128	1,979
Provisions
EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Warranty provisions	70	316	70
Long-term projects	185	0	185
Litigation provision	823	441	873
Other risk provisions	174	0	214
Total	1,252	757	1,342
Non-current other liabilities
EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Other liabilities	390	492	490
Total	390	492	490

8. CURRENT FINANCIAL LIABILITIES

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Current loans from financial institutions	0	200	400
Lines of credit in use	4,041	4,671	5,281
Current lease liabilities	397	371	544
Total	4,439	5,242	6,225

9. TRADE PAYABLES AND OTHER LIABILITIES

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Trade payables	16,601	11,176	10,327
Advances received	6,214	7,438	595
Other current liabilities	6,942	4,864	8,734
Accrued liabilities on income and expenses	16,730	16,156	15,912
Total	46,488	39,634	35,568

´

EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Current deferred income	107	98	72
Percentage of completion method	7,282	3,437	5,690
Accrued employee expenses Other current accrued liabilities on income and	7,178	7,535	7,651
expenses	2,163	5,087	2,499
Total	16,730	16,156	15,912

10. GROUP COMMITMENTS AND CONTINGENT LIABILITIES

EUR Thousand Euros	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Cash installment loans	0	1,500	1,300
Credit line limits, total approved limit amount	12,416	8,220	10,526
Credit line limits, amount in use	4,041	4,671	5,281
Provided collaterals:
Pledged accounts receivable	4,785	5,411	5,595
Corporate mortgages, issued by the parent company of the group	5,000	5,000	5,000
Corporate mortgages, issued by Suvic ltd	5,000	5,000	5,000
Guarantee for the credit line	1,387	1,398	1,406
Other guarantees	2,563	2,899	3,097
Total	18,735	20,709	20 099
Bank and
performance
guarantee limits
EUR thousand Euros	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Total approved limit amount	12,000	12,000	12,000
Amount in use	9,864	10,217	6,228
Corporate mortgages
provided as collateral:
Corporate mortgages,
issued by the parent	10,000	10,000	10,000
company of the group
Corporate mortgages, issued by Suvic Ltd	5,000	5,000	5,000
Total	15,000	15,000	15,000

Counter-guarantees for labor and warranty period guarantees
EUR thousand	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
The financial institution's labor and warranty period guarantee	2,100	2,100	2,100
Fund investments given as collateral	287	300	273
The company mortgages are due to the increase in the bank and delivery guarantee limits of the group's subsidiary Suvic Oy.
The counter-guarantees have been given as security for the bank and delivery guarantee limit of the group's subsidiary Suvic Oy.
The comparative information has been

supplemented and updated.

Disputes and court proceedings

The subsidiary of the Group, Suvic Oy, has litigation pending in court, in which the Company has claims and the opposing party has counterclaims against the Company. The Company's claims concern the scope and quality of the delivery of the contract. The Company's legal position is strong, but the handling of the cases takes time, and it is difficult to assess the outcome.

11. GROUP QUARTERLY INFORMATION

	2023	2022	2023	2022	2022	2022
EUR thousand	1–3	1–3	4–6	4–6	7–9	10–12
NET SALES	45,790	47,824	47,316	47,315	59,745	48,087
Other operating income	60	2	-1	-2	1,542	-1,173
Material and services	-14,160	-18,612	-15,530	-19,259	-30,129	-18,022
Employee benefit expense	-27,408	-25,555	-25,324	-23,867	-25,528	-23,499
Other operating expense	-2,343	-1,740	-4,707	-2,312	-2,454	-2,898
EBITDA	1,939	1,919	1,753	1,875	3,176	2,494
Depreciation and amortization	-238	-222	-255	-201	-220	-353
OPERATING RESULT	1,701	1,697	1,498	1,674	2,956	2,141

12. GROUP KEY FINANCIAL PERFORMANCE INDICATORS

	1-6	1-6	1-12
EUR million	2023	2022	2022
Cash and cash equivalents	12,5	9,0	11,2
Interest-bearing liabilities	6,1	7,9	8,2
Net debt	-6,4	-1,1	-3,0
Equity attributable to equity holders of the parent	34,4	31,8	34,4
Shareholders' equity	34,5	31,3	34,3
Balance sheet total	90,3	81,5	82,5
Return on equity, %	11,5%	16,8%	18,5%
Return on investment, %	15,1%	18,6%	20,5%
Debt-equity ratio (Gearing), %	-18,5 %	-3,6 %	-8,8 %
Equity-ratio, %	41,0 %	42,3 %	41,9 %
Personnel (average for period)	817	801	779
Personnel (at end of period)	862	815	728
Earnings per share, EUR (basic, average for period)	0,017	0,020	0,049
Equity per share, EUR (basic, end of period)	0,32	0,30	0,32