Inin Group AS — Earnings Release 2023

Sep 5, 2023

Inin Group AS: First half revenue increase by 64% - second quarter and half-year 2023 financial results

Inin Group AS: First half revenue increase by 64% - second quarter and half-year 2023 financial results

5 September 2023 – Inin Group AS delivered revenue of NOK 102.7 million in this year’s second quarter, up 58 percent from the same period last year (NOK 65.1 million). EBIT was NOK -4.1 million in the second quarter (NOK -9.8 million)

The group’s M&A activity continues to be high, and numerous new acquisitions agreements were reached during the quarter.

“We are continuing our growth – both organically and through acquisitions. The EBIT in the second quarter is negatively impacted by substantial acquisition costs. We expect to deliver positive results in the second half of the year,” says Øivind Horpestad, CEO of Inin Group.

Inin Group secured several new contracts during the second quarter, including a NOK 30.7 million track ballast replacement project and a contract expansion from NOK 21 to NOK 53.5 million for installation of signalling systems. At quarter-end, the group’s order backlog was NOK 274 million, compared to NOK 175 million one year earlier.

For the first half of 2023, Inin Group delivered revenue of NOK 163.3 million, an increase of 64 percent versus the same period last year (99.4, pro-forma). EBIT for the period was NOK -14.3 million (NOK -21.4 million, pro-forma in H1 2022).

HIGH M&A ACTIVITY

Inin Group currently consists of three investment platforms: Rail Infrastructure, Power Distribution, and Testing, Inspection & Certification (TIC). Mass Handling & Recycling will be added as a fourth investment platform upon closing of the acquisition of TW Gruppen AS.

During the second quarter, and in subsequent months, Inin Group has closed three acquisitions, entered into three new share purchase agreements (SPA), and signed two new term sheets for potential acquisitions, including:

• Rail Infrastructure: Signed SPA to acquire rail contractor Team 1435 AS, closed the acquisition of fibre optics contractor Thuve’n Anlegg & Bane (Q3), and agreed term sheets to acquire railway contractor and signalling experts SLAM Jernbaneteknikk AS (Q3) and railway contractor Banefjell AS (Q3).

• Power Distribution: Signed SPA to acquire large, regional infrastructure construction and service company Laje AS (Q3)

• Testing, Inspection & Certification: Closed the acquisition of NDT companies Trygg Inspection AB and AlfaTest AB (Q3), plus established Inspekt Norway AS.

• Mass Handling & Recycling: Signed SPA to acquire TW Gruppen (Q3).

“We target highly fragmented business segments with our M&A efforts, and we are experiencing great interest from companies that would like to become part of Inin Group. We expect to complete several announced transactions in the next weeks and months. Both Laje and TW Gruppen will significantly increase Inin Group’s revenue and earnings potential going forward,” adds Øyvind Horpestad.

OUTLOOK

Inin Group’s Rail Infrastructure, Power Distribution and Testing, Inspection & Certification investment platforms are all continuing to experience high tendering activity. The order backlog of NOK 274 million and numerous frame agreements provide solid visibility for the rest of the year.

TW Gruppen have not delivered as they planned in 2023, the mass recycling facility is delayed and not expected to be up-and-running with full production capacity until the end of 2023. This will impact expected revenue and EBIT from TW Gruppen negatively in 2023, but it will at the same time reduce the consideration Inin Group will have to pay TW Gruppen as part of the latter’s EBIT-based earn-out model for the 12-month period that started in August 2023.

Through the combination of Inin Group’s current platforms and announced acquisitions, Inin Group aims to deliver full-year pro forma revenues of approximately NOK 1.5 billion in 2023, with pro forma EBITDA of approximately NOK 80 million.

PRESENTATION AT 08:30 (CET) TODAY

Inin Group will hold a webcast presentation at 08:30 (CET) today. Presenter is CEO Øivind Horpestad.

Register for the online event at: https://bit.ly/Inin_H1_2023

Questions can be submitted during the live webcast.

The half-year report and presentation material are enclosed to this announcement.

For further information, please contact:

Øivind Horpestad, CEO of Inin Group, Tel: +47 910 00 626

About Inin Group AS

Inin Group is a listed investment company operating as an industrial owner with investments in companies within infrastructure and industry services niches in the Nordics. The group create value by identifying investment opportunities within profitable niches with potential for development, consolidation and growth, working in collaboration with the platform companies to deliver sustainable growth and superior profitability. For more information, please visit: www.inin.no

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Fredrik Ekholm, Head of Strategy, at 08:00 am (CET) on 5 September 2023.