Inin Group AS — Earnings Release 2024

Aug 30, 2024

ININ Group Q2/H1 2024 financial results: Increased NAV, solid EBITDA result and record-high order backlog

ININ Group Q2/H1 2024 financial results: Increased NAV, solid EBITDA result and record-high order backlog

30 August 2024 – ININ Group today reports estimated net asset value (NAV) of NOK 755 million as of 30 June 2024, up from NOK 745 million at the beginning of the quarter. Inin Group delivered a solid EBITDA-result of NOK 37 million in the second quarter, and grew its order backlog to a record-high NOK 1,039 million.

The NAV of NOK 755 million represents a return of 2.2x on ININ Group’s investments in its platform companies, reflecting solid value creation in the group’s three platform companies. ININ Group is an industrial owner with investments in companies within infrastructure services niches in the Nordics.

STRONG GROWTH

ININ Group delivered revenue of NOK 463 million in the second quarter, up from NOK 252 million in the previous quarter. Reported EBITDA was NOK 37 million, up from NOK -39 million in the previous quarter which was affected by the low activity winter season. Adjusted for M&A cost, EBITDA was NOK 44 million, equivalent to a margin of 9 percent, in this year’s second quarter (ININ Group did not report second quarter figures last year, hence the comparison with the previous quarter).

“We have moved into the busy season for outdoor railway maintenance work and the solid second quarter reflects strong production and revenue generation. We are experiencing high activity levels across all our investment platforms,” says Øivind Horpestad, CEO of ININ Group.

ININ Group grew its order backlog to a record high NOK 1,039 million at the end of this year’s second quarter, following numerous contract awards in the period.

INVESTMENT PLATFORM UPDATE

Currently, ININ Group consists of three investment platforms: Rail Infrastructure; Power Distribution; and Testing, Inspection & Certification (TIC).

The Rail Infrastructure platform experiences solid organic growth. The segment delivered revenue of NOK 220 million and EBITDA of NOK 32.7 million, equivalent to an EBITDA margin of 15 percent, in this year’s second quarter. In May, the lead platform company, Nordic Infrastructure Group, signed term sheets to acquire 100 percent of the shares in both Norway-based Trasé AS, which is a specialist within construction and maintenance of public transport infrastructure, and Northern Norway based Nordnes Narvik AS – a specialist railway contractor in the region.

“Our Rail Infrastructure platform is showing a very positive development. It benefits from widespread political backing to improve railway systems in Norway and Sweden. Our Rail Infrastructure platform companies announced around NOK 250 million in new orders in the second quarter. It is a very attractive market,” says Øivind Horpestad.

The Power Distribution platform delivered revenue of NOK 219 million in the second quarter. EBITDA ended at NOK 7 million, corresponding to a margin of 3 percent. This is the first quarter with positive EBITDA result following implementation of an extensive performance improvement programme throughout 2023. In early July, Anders Granshagen was appointed as head of the Power Distribution platform.

The TIC platform continues to deliver significant revenue growth following a period of aggressive recruitment. At the end of June, the platform employed 73 FTEs. Their utilization rate has risen since April, but is yet to reach its full potential. Several new locations have been added in Sweden and Norway during the second quarter. TIC platform revenue was NOK 29 million and EBITDA NOK -1.3 million in the second quarter.

“The TIC platform is on its way out of the ‘start up’-phase. We have invested a lot in recruitment and growing the team, and we expect to start capitalizing on this in the coming quarters,” adds Øivind Horpestad.

VOLUNTARY SHARE EXCHANGE OFFER

On 8 April 2024, Qben Infra announced that it will make a voluntary share exchange offer to acquire all the outstanding shares in ININ Group for a consideration of 0.2562606 newly issued shares in Qben Infra per share in Inin Group. The offer consideration represents a value of ININ Group’s outstanding share capital of NOK 889 – 1,136 million on a fully diluted basis. This valuation range represents a value per ININ Group share of NOK 6.0 – 7.7 per share and a premium of 117% – 181% compared to the volume weighted average price of the ININ Group shares for the three-month period ending before the Announcement on 8 April 2024.

On 31 May 2024, Qben Infra announced a share exchange offer directed to the 140 largest shareholders in ININ Group. The result of this offer showed that 91,516,417 ININ Group shares (including pre-acceptances) had accepted the offer. This corresponds to approximately 73% of the total outstanding share capital of ININ Group. Including warrants, options and shares on total return swap agreements, the pre-accepting and accepting shareholders control approximately 77% of the share capital on a fully diluted basis of ININ Group.

An offer on the same terms will follow to all remaining ININ Group shareholders that did not receive the offer that was directed at the 140 largest shareholders. Such offer will include a prospectus relating to Qben Infra AB and the Offer Consideration (“Retail Exchange Offer”). This prospectus is subject to approval by Finansinspektionen – the Swedish financial services authority.

“Qben Infra expects to launch the ‘Retail Exchange offer’ during the third quarter of 2024. The exact timing depends on when the prospectus is approved,” adds Øivind Horpestad.

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_2024

Questions can be submitted during the live webcast through a Q&A function.

The presentation material and half-year 2024 financial report are enclosed with this announcement.

(ENDS)

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 r with investments in companies within infrastructure services niches in the Nordics. The group aims to create value by identifying investment opportunities within profitable niches with potential for development, consolidation, and growth, working in close collaboration with the platform companies to deliver sustainable growth and 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, Investment Manager, at 08:00 am (CET) on 30 August 2024.