Norva24 Group — Interim / Quarterly Report 2021

Feb 28, 2022

Year-end report January-December 2021

Strong quarter with solid growth – both organic and acquired

October-December 2021

• Total operating revenue amounted to NOK 588.9 million (445.7) an increase of 32.1%. Currency adjusted organic growth was 9.4% and growth from acquisitions was 26.6%.
• Revenue from customer contracts amounted to NOK 583.6 million (444.0), an increase of 31.4%.
• EBIT amounted to NOK 75.6 million (46.9) an increase of 61.2%.
• Non-recurring items during the quarter amounted to NOK 0.8 million (–10.5).
• Adjusted EBITA amounted to NOK 82.0 million (62.9).
• Profit for the period was NOK 50.7 million (13.0).
• Cash flow from operating activities totaled NOK 140.2 million (135.0).
• Basic/Diluted earnings per share amounted to NOK 0.36 (0.09).

January-December 2021

• Total operating revenue amounted to NOK 2 025.5 million (1 522.5), an increase of 33.0%. Currency adjusted organic growth was 3.3% and growth from acquisitions was 32.1%.
• Revenue from customer contracts amounted to NOK 2 006.3 million (1 512.4), an increase of 32.7%.
• EBIT amounted to NOK 193.5 million (179.2), an increase of 8.0%.
• The period was charged with non–recurring items amounting to NOK 36.2 million (15.7), primarily related to the preparations for the stock exchange listing.
• Adjusted EBITA amounted to NOK 257,7 million (211,9).
• Profit for the period was NOK 86.0 million (112.0).
• Cash flow from operating activities totaled NOK 337.4 million (353.8).
• Basic/Diluted earnings per share amounted to NOK 0.81 (1.87).

Significant events during the January-December 2021 period

• During the first quarter, Norva24 acquired two companies: Kjelsberg Transport AS (Norway) and GJ & Son AB (Sweden). Both acquisitions were closed in late January and consolidated from February 2021.
• Five acquisitions were completed during the second quarter. In April 2021, Mayer and Krüger (Germany) was acquired. The acquisitions of GR Avloppsrensning AB (Sweden) and Malmberg Miljöhantering AB (Sweden) were closed in June and consolidated from June 2021. The acquisitions of Decker Group (Germany), consisting of 7 entities, and Ulvsby Miljö AB (Sweden), including two subsidiaries, were closed and consolidated at the end of June.
• During the second quarter, the Swedish company Norva24 Group AB (publ) became the Parent Company of Norva24 Group. This was an intercompany restructuring that is described in Notes 1 and 2.
• Tim Norman was appointed the new CEO of Norva24 Denmark in August 2021.
• On December 9, the shares of Norva24 Group were listed on Nasdaq Stockholm Main List. The proceeds of NOK 896.5 million will facilitate Norva24's continued acquisitive growth.

Significant events after the reporting period

• Index price increases in line with relevant inflation linked indices were implemented on the majority of public contracts in Norway and partly in Sweden and Denmark as from January 1, 2022 driven by sharply rising fuel and energy prices.
• Nomination Committee was appointed ahead of Norva24 Group AB's Annual General Meeting 2022.
• In February 2022 Norva24 expands into German Rhein/Ruhr metropolitan region, through the signing of an acquisition of Zimmerbeutel.

FINANCIAL OVERVIEW
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	2021	2020	2021	2020
Total operating revenue	588.9	445.7	2 025.2	1 522.5
Growth – total revenue, %	32.1	25.9	33.0	18.3
Adjusted EBITA	82.0	62.9	257.7	211.9
Adjusted EBITA margin, %	13.9	14.1	12.7	13.9
Adjusted EBITA growth, %	30.5	n.a.	21.6	n.a.
EBIT	75.6	46.9	193.5	179.2
Cash flows from operating activities	139.0	135.0	337.4	353.8
Cash conversion, %	102.6	127.3	73.1	99.0
Net debt (at period end)	763.6	1 245.6	763.6	1 245.6
Net debt (at period end)/LTM adjusted EBITDA	1.7	3.5	1.7	3.5
Earnings per share (basic and diluted), NOK	0.36	0.09	0.81	1.87

This is information that Norva24 Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out on page 38. This interim report has not been reviewed by the Company's auditors.

Strong growth both organically and through recent acquisitions

Our listing in December 2021 marked an important milestone on our journey building a European Lighthouse and market leader in Underground Infrastructure Maintenance. With the listing we raised capital of approximately NOK 900 million, making it possible for us to increase our pace in acquisition activities. This year-end report is our first report after the listing and it is confirming that we are on the right track.

During the fourth quarter of 2021, our business operations displayed continued strong growth with 9.4% currency adjusted organic growth and 27% acquired growth. Total operating revenue increased by 32% compared with the fourth quarter of last year, due to recent acquisitions in Germany and Sweden, and healthy organic growth in Norway and Germany.

Adjusted EBITA was NOK 82 million for the fourth quarter, an increase of 30% compared with last year and the adjusted EBITA margin was 14% during the fourth quarter of 2021. On the full year adjusted EBITA increased by 22% to NOK 258 million.

"We are very pleased with being a listed company and the capital increase enables us to take the next steps in our acquisition strategy to become the market leader in the European UIM industry."

I am very pleased with the development in what in the future is expected to be our largest market – Germany. We saw a currency adjusted organic growth of 27% and growth in total operating revenue of close to 80 % during the fourth quarter and 126% for the full year. This strong performance was also driven by acquired growth of 60% in the fourth quarter through the recent acquisitions.

Our acquisition of Mayer Kanalmanagement in April 2021 has strengthened the market position in Berlin. Decker Group was acquired in June 2021, which, with its location in Hamburg, has secured our leading position in Northern Germany. The trend in Germany is very satisfying and evidence of our ability to implement our acquisition strategy in Northern Europe. Adjusted EBITA in Germany in the fourth quarter of 2021 amounted to NOK 36 million compared with NOK 17 million in Q4 2020.

It was also positive to see that the signs of improvements we have seen in the Danish operations in earlier quarters, materialized in a positive currency adjusted organic growth and improved adjusted EBITA in Q4 2021. Currency adjusted revenue growth in Q4 2021 amounted to 1% and the adjusted EBITA margin increased to 5%, compared to negative profitability in Q4 2020. The clear improvement is a result of the initiatives implemented. The development in Denmark in the fourth quarter confirms our belief that Denmark is improving the adjusted EBITA from 2022.

As from January 1, 2022, we have implemented contractual price increases in line with various transportation linked indicies. Higher transportation costs mainly from increased fuel and energy prices has affected costs in 2021 and the price increases are expected to compensate for most of these cost increases going forward, so we claim to have good protection from possible rising inflation.

To summarize, we have acquired a total of eleven companies in the past year and a half, adding revenues of approximately MNOK 550. We paused acquisitions in the second half of 2021 because of the IPO process. Coming into 2022, our pipeline of acquisition candidates is strong, and we expect good acquisition activity level in 2022. Our vision is clear: We want to be the market leader in underground infrastructure maintenance (UIM) in Europe. We continue to strengthen our position through both acquisitions and organic growth to fully live up to our slogan: "We always help!"

We operate in a non–cyclical and a mission critical industry with market growth driven by, amongst many factors ageing underground infrastructure, increased regulation and climate change. We have a clear and proven consistent acquisition strategy, with 32 acquisitions completed since Norva24 was established. We operate in the European UIM market – a total addressable market of NOK 140 billion. With a large pipeline of potential acquisition candidates, and many ongoing dialogues with significantly higher acquisition capacity following the IPO, we are well on our way to achieving our financial target of NOK 4.5 billion in total revenue in 2025.

Our services are critical to the functioning of society and needed no matter what circumstances. The full Norva24 team has serviced our customers 24/7 throughout the pandemic in 2020 and 2021. Our core values are trust & passion, and in the pandemic years our employees truly showed how strongly these values stand in the organization. No matter what circumstances or restrictions our teams met, they managed to find solutions and help our customers. I would like to thank our employees for having carried out tremendous work for our customers.

Our maintenance of the underground infrastructure is a key factor for a sustainable future. Due to the climate change with more severe weather, the need for and importance of Norva24's services are increasing. We work continuously to develop Norva24's sustainability work and to secure the position as the leading player in our industry, based on the UN Global Sustainable Development Goals for clean water and sanitation and clean energy.

Henrik Damgaard Chief Executive Officer

Financial overview for the Group

Total operating revenue (October-December)

Total operating revenue amounted to NOK 588.9 million (445.7), an increase of 32.1%. The currency adjusted organic growth was positive at 9.4%. The acquisitions increased total revenue by 26.6%. Organic growth was very strong in Germany and healthy in Norway.

%	Oct-Dec 2021	Oct-Dec 2020
Growth – total operating revenue	32.1	25.9
Organic growth	5,5	0.0
Organic growth – currency adjusted	9.4	–3.2
Acquisition growth	26.6	25.9

Total operating revenue (January-December)

Total operating revenue amounted to NOK 2,025.2 million (1,522.5), an increase of 33.0%, mainly due to acquisitions. Currency adjusted organic growth amounted to 3.3%. Total operating revenue for 2021 was negatively impacted as a result of COVID-19, by e.g. the postponement of planned maintenance assignments and by emptying of grease separators being impacted by lower activity within the HoReCa sector. Norway and Germany delivered the strongest increase in total revenue, with growth of 8.5% and 126.6% respectively.

%	Jan-Dec 2021	Jan-Dec 2020
Growth – total operating revenue Organic growth	33.0 0.9	18.3 1.7
Organic growth – currency adjusted	3.3	–2.3
Acquisition growth	32.1	16.6

Total operating expenses (October-December)

Total operating expenses amounted to NOK 452.7 million (350.2). The increase was driven by a higher cost base due to the acquisitions in Sweden and Germany, higher fuel costs due to increased diesel prices.

Total operating expenses (January-December)

Total operating expenses increased to NOK 1 594.2 million (1 180.8). The increase was driven by a higher cost base due to the acquisitions in Sweden and Germany, higher fuel costs due to increased diesel prices and costs related to the stock exchange listing and capital increase. The listing costs are defined as non-recurring items.

Adjusted EBITA (October-December)

Adjusted EBITA increased by 30.5% to NOK 82.0 million (62.9), with an adjusted EBITA margin of 13.9% (14.1). The increase in EBITA was mainly driven by the latest acquisitions in Norway, Germany, and Sweden. The reduction in the adjusted EBITA margin is mainly attributable to certain acquisitions having a somewhat lower margin than the Group average. The margin is also affected by higher depreciation of vehicles and equipment due to the acquisition of right-of-use assets and property, plant and equipment through acquired companies. In addition to this, higher fuel prices impacted the Group's costs.

Adjusted EBITA (January-December)

Adjusted EBITA increased by 21.6% to NOK 257.7 million (211.9), with an adjusted EBITA margin of 12.7% (13.9). The EBITA development is mainly driven by the latest acquisitions in Norway, Germany, and Sweden. The reduction in the adjusted EBITA margin is mainly attributable to certain acquisitions having a somewhat lower margin than the Group average. The margin is also affected by higher depreciation of vehicles and equipment due to the acquisition of right-of-use assets and property, plant and equipment through acquired companies. In addition to this, higher fuel prices impacted the Group's costs.

Depreciation, amortization and impairment (October-December)

Depreciation and amortization of tangible and intangible assets amounted to NOK 53.3 million (43.2) during the quarter. The increase is primarily attributable to the acquired companies' vehicles and equipment, and the amortization in intangible assets related to the acquired companies' brands and customer relationships. There have been no impairments in the period.

Depreciation, amortization and impairment (January-December)

Depreciation and amortization of tangible and intangible assets amounted to NOK 209.6 million (145.6) for the period. The increase is due to the acquired companies' tangible and intangible assets. There have been no impairments in the period.

EBIT (October-December)

EBIT amounted to NOK 75.6 million (46.9). The increase in EBIT was primarily attributable to acquired companies. Costs were impacted by the higher depreciation of vehicles and equipment due to the acquisition of right-of-use assets and property, plant and equipment, through the companies acquired in the past 12 months, as well as higher fuel costs on the vehicle fleet.

EBIT (January-December)

EBIT amounted to NOK 193.5 million (179.2). The increase in EBIT was primarily attributable to acquired companies, but was also charged with costs related to preparations for stock exchange listing. In addition, costs were impacted by the higher depreciation of vehicles and equipment due to the acquisition of right-of-use assets and property, plant and equipment, through the companies acquired in the past 12 months.

Financial items (October-December)

Net financial items amounted to NOK –48.0 million (–15.6) and consist primarily of interest expenses on loans and currency effects. Included in net finance expense is a derecognition of NOK 20.9 million related to the refinancing of the Groups debt.

Financial items (January-December)

Net financial items amounted to NOK –113.4 million (–33.9) and consist primarily of interest expenses on loans and currency effects.

Earnings (October-December)

Profit before income tax was NOK 27.5 million (31.3). Profit for the period was NOK 50.7 million (13.0). Basic and diluted earnings per share was NOK 0.36 (0.09) per share.

Earnings (January-December)

Profit before income tax was NOK 80.2 million (145.3). Profit for the period was NOK 86.0 million (112.0). Basic and diluted earnings per share was NOK 0.81 (1.87) per share.

Income tax expense (January-December)

Income tax expense for the period amounted to NOK 5,8 million (–33.3). The tax expense is positive due to large permanent differences in relation to the IPO and other gains.

Cash flow and capital expenditures (January-December)

Cash flow from operating activities amounted to NOK 337.4 million (353.8) and was negatively impacted by costs related to preparations for a stock exchange listing and acquisitions. Changes in net working capital contributed to improved cash flow of NOK 57.8 million (–14.2). In addition to cash and cash equivalents, the Group has a new revolving credit facility amounting to NOK 1 100 million, of which NOK 856 million was unutilized on December 31.

Cash flow from investing activities was NOK –272.3 million (–345.2), of which acquisitions of subsidiaries and operations amounted to NOK –214.1 million (–292.2).

Cash flow from financing activities amounted to NOK 19.1 million (–0.7) and was attributable to the net change in borrowing and repayment of lease liabilities.

Cash conversion was 73.1% during the 12–month period January 2020 to December 2021, compared with 99.0% for full–year 2020.

Financial position and liquidity (January-December)

Norva24's net debt amounted to NOK 763.6 million (1 245.6), corresponding to a net debt/LTM-adjusted EBITDA of 1.7 (3.5). The reduction is attributable to the NOK 896.5 million raised in the IPO used to repay debt. The Group's cash and cash equivalents amounted to NOK 260.4 million (180.9).

Non-current and current interest-bearing liabilities amounted to NOK 1 024.0 million (1 426.5), of which NOK 325.3 million (870.2) was loans and NOK 698.7 million (556.4) was lease liabilities. The loans have customary terms and conditions. During the period, the Group repaid NOK 1 235,3 million of its existing loans.

The change of Parent Company had no impact on the Group's financial position.

At the end of the period, equity amounted to NOK 1 619.6 million (688.0). The equity/assets ratio was 50.2% (27.0).

Acquisitions

Seven acquisitions were completed during 2021. Due to the IPO process no acquisitions were completed in the second half of 2021. The acquired companies operate in Norway, Germany and Sweden and strengthen the Group's market position in these markets. The acquisitions were conducted in line with the Group's strategy of growth through business combinations. The acquisitions strengthen the Group's position in specific product areas and markets. The acquisitions had an impact on the Group's total operating revenue in an amount of NOK 253,8 million and earnings in an amount of NOK 29,3 million. These acquisitions would have had an impact on total operating revenues of NOK 348 million and profit of NOK 6.8 million in 2021 on an annualized basis.

The total purchase consideration for the acquisitions amounted to NOK 301,9 million, of which NOK 31,0 million was attributable to the companies' performance.

Employees

On December 31, 2021, the total number of employees was 1 450 (1 165).

COVID-19

During 2020 and 2021, COVID-19 affected the UIM industry in many respects, but did not result in any negative market growth. As an industry, the UIM market has experienced the same challenges and obstacles, with restrictions, higher sickness absence and social distancing, as the rest of the economy and society during this extraordinary period. The UIM industry's tasks are essential to society, which means that the underlying need for UIM services remains unchanged and neither increased nor decreased during the pandemic, thereby demonstrating the UIM industry's resilience. It is difficult to make an exact analysis of the impact on market growth during the period. The UIM industry in Norva24's current markets has, however, been resilient and displayed low economic sensitivity, with an essentially unchanged market in 2020 and 2021.

The Omicron variant has impacted sickness leave to some extent in late 2021 and early 2022 mainly due to quarantine restrictions. As the number of infections is expected to go down and restrictions have been eased it is foreseeable that the situation will gradually normalize.

Seasonal variations

The Group has a certain amount of seasonal variation and historically, the second and fourth quarters have been the strongest, driven by variations in demand due to colder weather and vacation periods. In the short term, seasonal variations are expected to be in line with the way it has been reported historically, but in the long term, they may change somewhat as the Group grows in other parts of Europe where the winter season has less impact.

Risk and uncertainty factors

Currency risks, interest risks, credit risks, liquidity risks and operational risks are the most significant risks for the Group. These risks are managed continuously in the operations.

Group management monitors the financial risk in accordance with the description of financial risk management in Note 21 of the 2020 Annual Report. The review in conjunction with the January-December 2021 year-end report found no material changes or negative effects compared with the analysis on December 31, 2020.

When an acquisition is made, purchase considerations, assets and liabilities are recognized at estimated fair value and amounts exceeding the value of net assets are included in goodwill. In the businesses Norva24 operates, fair values of individual assets and liabilities are normally not readily observable in active markets. Estimation of fair values requires the use of valuation models for acquired assets and liabilities as well as ownership interests. Such valuations are subject to numerous assumptions and are thus uncertain.

The fair value at acquisition date of the Brands and Customer relationships is based on a value-in-use model and an allocated percentage of the consideration paid less the net assets acquired. Estimates of the useful life of the Brands' acquired is based on management's market knowledge and marketing plans. Recognized earn-outs are based on the probability that an acquired company will achieve its financial goals.

Norway – healthy organic and acquisition growth

The Group's Norwegian operations history dates back to 1919 in Sandefjord, Norway, when Norva24's oldest subsidiary was established. In 2015, Norva24 in its current form was established through a merger of five smaller Norwegian UIM companies. Since then, Norva24 has expanded and now has a leading market position in Norway.

Total operating revenue (October-December)

Total operating revenue amounted to NOK 220.5 million during the fourth quarter, compared with NOK 199.6 million during the same period of 2020, corresponding to growth of 10.4% in total operating revenue. The growth was primarily driven by higher activity, mainly in the east of Norway, and the acquisition of Kjelsberg Transport, which was closed during the first quarter of 2021. Organic growth increased by 5.7% in Q4. Acquisition growth was 4.7%, due to the acquisition of Kjelsberg Transport.

TOTAL OPERATING REVENUE GROWTH

	Oct-Dec	Oct-Dec
%	2021	2020
Growth – total operating revenue	10.4	3.7
Organic growth	5.7	1.2
Acquisition growth	4.7	2.5

Total operating revenue (January-December)

Total operating revenue for 2021 amounted to NOK 801.5 million, compared with NOK 738.6 million during the same period of 2020, corresponding to growth of 8.5% in total operating revenue for the period. Organic growth was 3.4% compared with the preceding year. Acquisition growth was 5.1%, due to the most recent addition, Kjelsberg Transport.

TOTAL OPERATING REVENUE GROWTH

	Jan-Dec	Jan-Dec
%	2021	2020
Growth – total operating revenue	8.5	–0.1
Organic growth	3.4	–2.0
Acquisition growth	5.1	1.9

Adjusted EBITA (October-December)

Adjusted EBITA amounted to NOK 34.2 million in Q4 2021, compared with NOK 42.1 million in the same period of 2020. The adjusted EBITA margin was 15.5% in the fourth quarter of 2021. The reduction in margin is primarily attributable to a number of maintenance assignments being postponed by customers after the lockdown due to COVID-19 and price increases on e.g., fuel, energy and vehicle maintenance that has not yet been adjusted. New price levels (index adjusted on a majority of the public contracts) was implemented as of January 1, 2022. In addition, the latter part of 2021 has been affected by cost on related to leave of absence due to COVID-19 (omicron) from quaranteene regulations.

Adjusted EBITA (January-December)

Adjusted EBITA amounted to NOK 126.2 million for 2021, compared to NOK 140.1 million in the same period of 2020. The adjusted EBITA margin was 15.3% in 2021. The margin decline is primarily attributable to a number of maintenance assignments being postponed by customers after the lockdown due to COVID-19 and a lag in price effect in public contracts due to fuel cost increases.

Highlights of the quarter

During the second half of 2021, the relocation to Norva24's new base in Drøbak, south of Oslo, was completed. Concentrating all units in the greater Oslo area into on one common and highly modern facility will enhance efficiency and improve the use of the vehicle fleet. Norva24 has also established a new shared base in Drammen, which will strengthen effectiveness and response time in the Drammen area. Following the strategic focus of developing the large national account sales, Norva24 has in 2021 seen a strong growth in this customer segment.

KEY PERFORMANCE INDICATORS

	Oct-Dec	Oct-Dec	Change,	Jan-Dec	Jan-Dec	Change,
NOK million	2021	2020	%	2021	2020	%
Total operating revenue	220.5	199.6	10.4	801.5	738.6	8.5
EBITA	33.7	42.1	–20.1	122.4	139.2	–12.1
EBITA margin, %	15.3	21.1		15.3	18.9
Adjusted EBITA	34.2	42.1	–18.9	126.2	140.1	–9.9
Adjusted EBITA margin, %	15.5	21.1		15.7	19.0

Germany – significant growth and good profitability from recent acquisitions

Norva24 entered Germany in 2019 through the acquisition of Ex–Rohr. Since then, Norva24 has grown and secured a leading market position in Germany. The Group's oldest subsidiary in the country was established in Gochsheim in 1964.

Total operating revenue (October-December)

Total operating revenue amounted to NOK 197.7 million during the fourth quarter, compared with NOK 109.6 million during the same period of 2020, corresponding to growth of 80.3% in total revenue. The growth was primarily attributable to the acquisitions of the Kanal-Türpe Group during the fourth quarter of 2020 and Mayer Kanalmanagement during the second quarter of 2021. Germany displayed very strong currency adjusted organic growth of 27.5%. The organic growth during the quarter was mainly driven by high level of activity, particularly in relining services in northern Germany, but also favorable weather conditions compared to last year.

%	Oct-Dec 2021	Oct-Dec 2020
Growth – total operating revenue	80.3	108.2
Organic growth	19.5	6.9
Organic growth – currency adjusted	27.5	0.3
Acquisition growth	60.8	101.3

Total operating revenue (January-December)

Total operating revenue for 2021 amounted to NOK 646.3 million, compared with NOK 285.2 million during the same period of 2020, corresponding to growth of 126.6% for the period. The growth was primarily attributable to the acquisitions of the Kanal-Türpe Group during the fourth quarter of 2020 and Mayer Kanalmanagement during the second quarter of 2021. The growth was supported by both strong organic growth of 18.9% (currency adjusted) combined with 113.8% growth from acquisitions.

%	Jan-Dec 2021	Jan-Dec 2020
Growth – total operating revenue	126.6	62.1
Organic growth	12.8	10.0
Organic growth – currency adjusted	18.9	–0.1
Acquisition growth	113.8	52.1

Adjusted EBITA (October-December)

Adjusted EBITA amounted to NOK 36.0 million in Q4 2021 compared to NOK 16.6 million in the same period of 2020, an increase of 117.1%. The adjusted EBITA margin increased from 15.1% in the preceding year to 18.2% this quarter.

Adjusted EBITA (January-December)

Adjusted EBITA amounted to NOK 119.1 million for 2021, compared to NOK 58.4 million in the same period of 2020. The adjusted EBITA margin declined from 20.5% last year to 18.4% in 2021. The margin decrease was primarily because the most recently acquired companies had a lower margin than the average for the segment.

Highlights of the quarter

The integration of Mayer Kanalmanagement and Decker Group proceeded according to plan. In 2021 Norva24 have strengthened the Groups geographical coverage in Germany significantly. A national key account management set-up is in place, developing and offering the market service contracts across the German branches.

KEY PERFORMANCE INDICATORS

	Oct-Dec	Oct-Dec	Change,	Jan-Dec	Jan-Dec	Change,
NOK million	2021	2020	%	2021	2020	%
Total operating revenue	197.7	109.6	80.3	646.3	285.2	126.6
EBITA	29.0	6.1	374.1	108.2	47.8	126.3
EBITA margin, %	14.7	5.6		16.7	16.8
Adjusted EBITA	36.0	16.6	117.1	119.1	58.4	103.9
Adjusted EBITA margin, %	18.2	15.1		18.4	20.5

Sweden – positive growth through acquisitions

Norva24 entered Sweden in 2017 through an acquisition in the south of Sweden. Since then, Norva24 has grown and secured a leading market position in Sweden. The Group's oldest subsidiary in the country was founded in 1974 in Ulricehamn.

Total operating revenue (October-December)

Total operating revenue during the quarter amounted to NOK 99.8 million compared with NOK 60.7 million during the same period in 2020, corresponding to an increase of 64.5%. Currency adjusted organic growth was 0.2%. The low growth was primarily attributable to weak development in one of the units. Healthy growth was noted in the Stockholm region, where Norva24 has established a market-leading position in recent years. GR Avloppsrensning AB, GJ & Son, Malmberg Miljöhantering AB and Ulvsby Miljö AB generated an acquisition growth of 70.3% in the fourth quarter.

%	Oct-Dec 2021	Oct-Dec 2020
Growth – total operating revenue	64.5	144.7
Organic growth	–5.8	10.3
Organic growth – currency adjusted	0.2	0.1
Acquisition growth	70.3	134.4

Total operating revenue (January-December)

Total operating revenue was NOK 306.6 million for 2021 compared with NOK 192.2 million during the same period of 2020, corresponding to an increase of 59.5% for the period. The growth was driven by the acquisitions. Currency adjusted organic growth was negative at –4.0% for 2021. The negative growth was primarily attributable to weak development in one of the units.

%	Jan-Dec 2021	Jan-Dec 2020
Growth – total operating revenue	59.5	136.4
Organic growth	–6.5	4.9
Organic growth – currency adjusted	–4.0	–4.4
Acquisition growth	66.0	131.5

Adjusted EBITA (October-December)

Adjusted EBITA amounted to NOK 10.3 million in Q4 2021 compared to NOK 12.4 million in the same period of 2020. The adjusted EBITA margin declined from 20.4% in the preceding year to 10.4% in the fourth quarter of 2021. The decrease in adjusted EBITA was mainly driven by transportation costs and personnel cost with some COVID-19 impact.

Adjusted EBITA (January-December)

Adjusted EBITA amounted to NOK 39.6 million for 2021, compared to NOK 40.7 million in the same period of 2020. The development was mainly driven by the acquisitions and by transportation costs and personnel cost with some COVID-19 impact.

Highlights of the quarter

The integration of the most recently acquired GR Avloppsrensning, Malmberg Miljöhantering and Ulvsby Miljö proceeded according to plan. During the third quarter 2021, the operation in Malmö established a new base, which strengthens the presence in Sweden's third largest city. A new base was established in December east of Stockholm generating economies of scale and higher density in key markets. In a collaboration between the Stockholm branches, Norva24 recently expanded our activities in Stockholm to include the two UIM services TV inspection and water recycling solutions. These services are a well-integrated part of modern UIM services that are also offered in many other Norva24 branches.

5 10 15 20 25 NOK million Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2021 Q2 2021 Q3 2021

KEY PERFORMANCE INDICATORS

	Oct-Dec	Oct-Dec	Change,	Jan-Dec	Jan-Dec	Change,
NOK million	2021	2020	%	2021	2020	%
Total operating revenue	99.8	60.7	64.5	306.6	192.2	59.5
EBITA	10.1	12.4	–18.0	36.3	39.8	–8.6
EBITA margin, %	10.1	20.4		11.9	20.7
Adjusted EBITA	10.3	12.4	–16.3	39.6	40.7	–2.6
Adjusted EBITA margin, %	10.4	20.4		12.9	21.2

Adjusted EBITA

Denmark – positive EBITA and signs of improvement

The Group entered Denmark in 2017 through the acquisition of a player with national market presence. The Group's first subsidiary in the country was founded in the 1970s in Albertslund. Norva24 has a leading position in the Danish market.

Total operating revenue (October-December)

Total operating revenue for the fourth quarter of 2021 amounted to NOK 70.9 million, compared with NOK 75.8 million during the same period of 2020, corresponding to a growth of –6.5% for the period. Organic growth turned positive in the quarter mainly due to improved activities and new contracts. A new contract with the municipality of Vejle was signed during the quarter. The currency adjusted organic growth was positive at 0.9%, a sign of improvement. The improvement was due to factors as a review and cancelation of contracts with unsatisfactory profitability that were signed prior to Norva24's acquisition of the operations, which is now a primary focus for the organization.

	Oct-Dec	Oct-Dec
%	2021	2020
Growth – total operating revenue	–6.5	–7.8
Organic growth	–6.5	–7.8
Organic growth – currency adjusted	0.9	–13.8
Acquisition growth	0.0	0.0

Total operating revenue (January-December)

Total operating revenue for 2021 amounted to NOK 270,8 million, compared with NOK 306.4 million for the same period of 2020. The currency adjusted organic growth was –6.8% for the period mainly due to challenges with contracts with unsatisfactory profitability that were signed prior to Norva24's acquisition of the operations, which is now a primary focus for the organization.

%	Jan-Dec 2021	Jan-Dec 2020
Growth – total operating revenue	–11.6	4.8
Organic growth	–11.6	4.8
Organic growth – currency adjusted	–6.8	–3.8
Acquisition growth	0.0	–0.0

Adjusted EBITA (October-December)

Adjusted EBITA amounted to NOK 3.7 million during the quarter, compared to NOK –1.0 million during the fourth quarter of 2020. This development was due better capacity utilization of personnel, fleet and other resources.

Adjusted EBITA (January-December)

Adjusted EBITA amounted to NOK –6.3 million for 2021, compared to NOK –1.5 million in the same period of 2020. This development is due to factors as contracts with low profitability and challenges in capacity utilization of personnel, fleet and other resources.

Highlights of the quarter

Denmark is currently in a transition phase where several improvement initiatives have been implemented or are under implementation to increase the performance. The action plan is proceeding according to plan, with, for example, termination of contracts with unsatisfactory profitability and strong focus on operation and degree of utilization of vehicles and personnel. Zealand is the part of the Danish business that impacted growth and the margins most negatively and a new manager has now been appointed in this region to reverse the trend. Denmark's profitability is lower than average for the Group, but several branches reported profitability in line with the Group's average profitability. Norva24 has implemented and will implement a series of changes in the Danish business and Norva24 anticipates that these changes will result in a positive profitability trend in the Danish operations from 2022. The Group have received a settlement relating to acquisition of business in Denmark prior to 2020. The amount is net of legal cost, and recognized as other gain as non-recurring items.

KEY PERFORMANCE INDICATORS

	Oct-Dec	Oct-Dec	Change,	Jan-Dec	Jan-Dec	Change,
NOK million	2021	2020	%	2021	2020	%
Total operating revenue	70.9	75.8	–6.5	270.8	306.4	–11.6
EBITA	43.9	–1.0	n.m.	32.3	–1.5	n.m.
EBITA margin, %	61.9	–1.4		11.9	–0.5
Adjusted EBITA	3.7	–1.0	n.m.	–6.3	–1.5	n.m.
Adjusted EBITA margin, %	5.3	–1.4		–2.3	–0.5

Financial reporting

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million Note	2021	2020	2021	2020
Revenue from customer contracts	583.6	444.0	2 006.3	1 512.4
Other operating revenue	5.3	1.7	19.0	10.1
Total operating revenue 3	588.9	445.7	2 025.2	1 522.5
Operating expenses
Operational service expenses	–66.8	–58.9	–220.4	–173.7
Personnel expenses	–251.4	–191.5	–879.3	–672.6
Vehicle operating expenses	–88.2	–46.2	–288.1	–191.1
Other operating expenses	–86.6	–53.5	–246.7	–143.3
Other gains	40.3	–	40.3	–
Total operating expenses	–452.7	–350.2	–1 594.2	–1 180.8
Earnings before interest, taxes, depreciation and amortization (EBITDA)	136.2	95.6	431.0	341.8
Total depreciation and impairment 6, 7	–53.3	–43.2	–209.6	–145.6
Earnings before interest, taxes and amortization (EBITA)	82.8	52.4	221.5	196.2
Total amortization 5	–7.2	–5.5	–28.0	–17.0
Earnings before interest and taxes (EBIT)	75.6	46.9	193.5	179.2
Financial items
Financial income	2.6	12.5	9.6	23.6
Financial expenses	–50.6	–28.1	–123.0	–57.4
Net financial items	–48.0	–15.6	–113.4	–33.9
Profit before income tax (EBT)	27.5	31.3	80.2	145.3
Income tax expense	23.1	–18.3	5.8	–33.3
Profit for the period	50.7	13.0	86.0	112.0
Profit attributable to
Owners of the parent company	50.7	13.0	86.0	112.0
Non-controlling interests	–	–	–	–
Total	50.7	13.0	86.0	112.0
Earnings per share:
Basic earnings per share, NOK	0.36	0.09	0.81	1.87
Diluted earnings per share, NOK	0.36	0.09	0.81	1.87
Average numbers of outstanding ordinary shares, before and after dilution	132 162 356	40 027 525	64 165 959	39 600 347

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	2021	2020	2021	2020
Profit/loss for the period	50.7	13.0	86.0	112.0
Other comprehensive income: Items that may be reclassified to profit or loss
Translation differences	–5.6	–13.9	–34.6	10.6
Other comprehensive income for the period	–5.6	–13.9	–34.6	10.6
Total comprehensive income for the period	45.1	–0.9	51.4	122.6
Total comprehensive income attributable to:
Owners of the parent company	45.1	–0.9	51.4	122.6
Non-controlling interests	–	–	–	–
Total	45.1	–0.9	51.4	122.6

CONDENSED CONSOLIDATED BALANCE SHEET
NOK million Note	31-12-2021	31-12-2020
ASSETS
Non-current assets
Goodwill 5	1 222.6	1 070.8
Intangible assets 5	120.4	108.9
Right-of-use assets 6	724.3	599.4
Property, plant and equipment 7	429.3	276.5
Investment in shares	1.3	1.1
Other non-current receivables	3.5	4.6
Total non-current assets	2 501.3	2 061.3
Current assets
Inventories	10.8	2.7
Accounts receivable	281.4	238.8
Other current receivables	171.2	60.8
Cash and cash-equivalents	260.4	180.9
Total current assets	723.8	483.3
Total assets	3 225.1	2 544.5
EQUITY AND LIABILITIES
Equity
Share capital	0.5	10.4
Share capital (not yet registered)	0.1	–
Additional paid in capital	1 432.9	575.9
Other reserves	–24.1	10.5
Retained earnings	210.2	91.2
Total equity	1 619.6	688.0
Non-current liabilities
Deferred tax liability	21.2	48.2
Non-current lease liabilities 6	543.1	425.6
Non-current loans 8	264.1	768.8
Other non-current liabilities	12.2	46.7
Total non-current liabilities	840.7	1 289.2
Current liabilities
Accounts payable	144.2	86.5
Taxes payable	25.3	31.3
Current portion of lease liabilities 6	155.5	130.8
Current portion of loans 8	61.2	101.3
Other current liabilities	378.6	217.3
Total current liabilities	764.8	567.3
Total liabilities	1 605.5	1 856.5
Total equity and liabilities	3 225.1	2 544.5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

			Share capital	Additional
		Share	(not yet	paid in	Other	Retained	Total
NOK million	Note	capital	registered)	capital	reserves	earnings	equity
Equity at 1 January 2021		10.4	0.0	575.9	10.5	91.2	688.0
Total comprehensive income for the period:
Profit/loss for the period		–	–	–	–	86.0	86.0
Other comprehensive income:
Translation differences		–	–	–	–34.6	–	–34.6
Total comprehensive income for the period		–	–	–	–34.6	86.0	51.4
Transactions with owners in their capacity as owners:
New parent company share swap	1, 2	–10.4	0.5	9.9	–	–	0.0
Capital increase (net of transactions costs)	10	0.5	–0.5	15.4	–	–	15.4
IPO (net of transaction costs)	10	0.0	0.1	817.9	–	–	818.0
Over-allotment option (net of transaction costs)		–	–	–	–	33.1	33.1
Long term incentive program	10	–	–	13.8	–	–	13.8
Equity at 31 December 2021		0.5	0.1	1 432.9	–24.1	210.2	1 619.6
Equity at 1 January 2020		10.2	–	546.9	–0.1	–20.8	536.1
Total comprehensive income for the period:
Profit/loss for the period		–	–	–	–	112.0	112.0
Other comprehensive income:
Translation differences		–	–	–	10.6	–	10.6
Total comprehensive income for the period		–	–	–	10.6	112.0	122.6
Transactions with owners in their capacity as owners:	10
Capital increase (net of transactions costs)		0.2	–	29.1	–	–	29.2
Equity at 31 December 2020		10.4	0.0	575.9	10.5	91.2	688.0

The Group has no non-controlling interest.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	Note	2021	2020	2021	2020
Cash flows from operating activities
Profit before income tax		27.5	31.3	80.2	145.3
Adjustments for:
Impairment, depreciation and amortization expenses	5, 6, 7	60.6	48.7	237.5	162.6
Taxes paid		–	–	–31.3	–19.9
Net gain/loss on sale of non-current assets		–2.0	0.7	–5.3	0.1
Items included in financing activities	4	48.0	15.6	113.4	33.9
Change in net working capital		82.7	7.3	57.8	–14.2
Changes in other items*		–76.6	31.5	–114.8	46.0
Net cash inflow from operating activities		140.2	135.0	337.4	353.8
Cash flows from investing activities
Payment for acquisition of subsiduaries, net of cash acquired	10	–	–124.2	–214.1	–292.2
Payment for fixed assets		–26.6	–45.2	–70.8	–61.6
Proceeds from sale of fixed assets		6.3	2.4	12.6	8.6
Net cash outflow from investing activities		–20.3	–167.0	–272.3	–345.2
Cash flows from financing activities
Proceeds from issuance of shares		910.4	–	914.9	2.0
Proceeds from borrowings		244.4	218.4	547.1	266.9
Repayment of borrowings		–1 109.0	–79.1	–1 235.3	–91.5
Principal element of lease payments	6	–38.1	–31.1	–134.5	–114.6
Interest paid		–14.2	–7.3	–50.3	–30.7
Other financial payments		–8.6	–17.8	–22.7	–32.7
Cash flows from financing activities		–15.1	83.1	19.1	–0.7
Change in cash and cash equivalents		104.8	51.1	84.3	7.9
Cash and cash equivalents at the start of the period		157.6	130.7	180.9	171.8
Effects of exchange rate changes on cash and cash equivalents		–2.0	–0.9	–4.8	1.2
Cash and cash equivalents at the end of the period		260.4	180.9	260.4	180.9

* Includes changes in other non-current receivables and other non-current liabilities.

Notes

NOTE 1 REPORTING ENTITY

Norva24 Group AB (publ) is a public limited liability company listed on Nasdaq Stockholm. The share became publicly traded with the initial public offering December 9 2021. Norva 24 Group AB (publ) and is subsidiaries operates in the underground infrastructure industry, and is present in Norway, Germany, Sweden and Denmark.

As of June 30, 2021, the Group completed a re-organization, whereby Norva24 Group AB (publ) acquired all of the shares in Norva24 Holding AS (a company incorporated in Norway) through a share-for-share exchange, pursuant to which all shareholders of Norva24 Holding AS exchanged all of their shares in Norva24 Holding AS for newly issued shares in Norva24 Group AB (publ). Consequently Norva24 Group AB (publ) was established as the new parent company of the Group. Prior to June 30, 2021, Norva24 Holding AS was the Parent Company of the Norva24 Group. Accounting for the transaction is described in Note 2.

NOTE 2 BASIS OF PREPARATION

Accounting principles

The Norva24 Group applies the International Financial Reporting Standards (IFRS) as they have been adopted by the European Union. The consolidated accounts in this interim report have been prepared in accordance with IAS 34 Interim Financial Reporting plus applicable regulations in the Swedish Annual Accounts Act. The Parent Company accounts have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for Legal Entities. The interim report should be read together with the historic financial information included in the prospectus. Accounting principles and calculation basis are in accordance with those that were applied in the historic financial information. Information in accordance with IAS 34 16A also appears in other parts of the interim report in addition to the financial reports and associated notes.

The amounts are rounded to the nearest million (NOK) with one decimal place unless otherwise stated. As a consequence of rounding, figures presented in the financial reports may not add up to the exact total in certain cases and percentage figures can differ from the exact percentage figures. Amounts in brackets concern the comparison period.

Significant accounting judgements, estimates and assumptions

In preparing the interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses.

The estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the given circumstances.

Revision to accounting estimates is recognized in the period in which the estimate is revised if the revision affects only that period, or also future periods if the revision affects both current and future periods.

In preparing the consolidated interim financial statements, significant judgements made by management in applying the Group's accounting policies and key sources of uncertainty in the estimates were consistent with those applied for the period ended December 31, 2020.

Other

Items included in the financial statements of each of the Norva24 Group's entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian Kroner (NOK) which is Norva24 Group's presentation currency. The Parent Company Norva24 Group AB (publ)'s functional currency is Swedish kronor (SEK).

Numbers are rounded to the nearest NOK million with one decimal unless otherwise stated. As a result of rounding differences, amounts and percentage may not add up to the total.

There have been no related parties transactions other than the continuation of agreements described in the 2020 Annual Report for Norva24 Holding AS.

New parent company

As described in Note 1, the Parent Company of the Group changed from Norva24 Holding AS to Norva24 Group AB (publ) on June 30, 2021, through a share swap, where the shareholders of the Group remained unchanged. The share swap was classified as a common control reorganization and this transaction was not covered by the IFRS standards.

In these financial statements, all historical figures up to June 30, when the share swap was performed, comprise of Norva 24 Holding AS Group. From this date, Norva24 Holding AS and its subsidiaries are including Norva24 Group AB (publ). The financial statements are combined of the financial information for Norva24 Group AB (publ) and the Norva24 Holding AS Group. The financial statements are presented as if Norva24 Holding AS had been part of the Group in all periods presented, based on the values and periods, since these where integrated in the Norva24 Group. The subsidiaries are included in the consolidated financial statements from the date of their acquisition from an external party.

For this reason, the Group has chosen to recognize the historical consolidated financial statements for the former Parent Company of the Group, Norva24 Holding AS, as an appropriate application in accordance with IAS 8. Accordingly, the assets and liabilities in the former Group were not restated.

NOTE 3 REVENUE AND SEGMENT INFORMATION

Operating segments

Norva24 Group identifies its operating segments and discloses segment information in accordance with IFRS 8 Operating Segments. Accordingly, the Group identifies its segments consistent with the reporting structure used by management.

Operating segments are components of a business that are evaluated regularly by the chief operating decision maker for the purpose of assessing performance and allocating resources. The financial information is disclosed on the same basis as used by the chief operating decision maker.

Revenue

The Group's disaggregates revenue based on the operational segments that are by geographical areas. The Group has no single customer accounting for more than 10% of total revenue.

OPERATING SEGMENTS FINANCIALS JANUARY-DECEMBER 2021

					Corporate
NOK million	Norway	Germany	Sweden	Denmark	& other*	Total
Total operating revenue	801.5	646.3	306.6	270.8	–	2 025.2
Adjusted EBITDA	204.7	174.0	72.2	31.9	–20.9	461.8
Adjusted depreciation	–78.5	–54.9	–32.6	–38.2	–	–204.2
Adjusted EBITA	126.2	119.1	39.6	–6.3	–20.9	257.7
Non-recurring items	–3.8	–10.9	–3.3	38.6	–56.8	–36.2
EBITA	122.4	108.2	36.3	32.3	–77.8	221.5

OPERATING SEGMENTS FINANCIALS JANUARY-DECEMBER 2020

					Corporate
NOK million	Norway	Germany	Sweden	Denmark	& other*	Total
Total operating revenue	738.6	285.2	192.2	306.4	–	1 522.5
Adjusted EBITDA	204.7	78.6	58.3	41.8	–25.8	357.4
Adjusted depreciation	–64.6	–20.2	–17.6	–43.3	–	–145.6
Adjusted EBITA	140.1	58.4	40.7	–1.5	–25.8	211.9
Non-recurring items	–0.9	–10.6	–0.9	–0.0	–3.4	–15.7
EBITA	139.2	47.8	39.8	–1.5	–29.2	196.2

RECONCILIATION OF SEGMENT INFORMATION AND EARNINGS BEFORE INCOME TAX (EBT)

	Jan-Dec	Jan-Dec
NOK million	2021	2020
EBITA	221.5	196.1
Amortization of intangible assets	–28.0	–17.0
Net financial items	–113.4	–33.9
Profit before income tax	80.2	145.3

NOTE 3 REVENUE AND SEGMENT INFORMATION, continued.

RECONCILIATION OF NON-RECURRING ITEMS JANUARY-DECEMBER 2021

					Corporate
NOK million	Norway	Germany	Sweden	Denmark	& other	Total
Settlement	–	–	–	40.2	–	40.2
M&A Cost	–1.3	–4.9	–2.8	–	–	–8.9
IFRS implementation	–	–	–	–	–8.2	–8.2
IPO cost	–	–5.2	–	–	–48.6	–53.8
Depreciation	–2.5	–0.9	–0.5	–1.6	–	–5.4
Non-recurring items	–3.8	–10.9	–3.3	38.6	–56.8	–36.2

The Group have received a settlement relating to acqusition of business in Denmark prior to 2020. The amount is net of legal cost, and recogniced as other gain.

RECONCILIATION OF NON-RECURRING ITEMS JANUARY-DECEMBER 2020

		Corporate
NOK million	Norway	Germany	Sweden	Denmark	& other	Total
M&A Cost	–0.9	–10.6	–0.9	–	–	–12.4
IFRS implementation	–	–	–	–	–3.4	–3.4
Non-recurring items	–0.9	–10.6	–0.9	–	–3.4	–15.7

NOTE 4 FINANCIAL ITEMS

Specification of financial items	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	2021	2020	2021	2020
Interest income	0.3	0.0	0.6	0.0
Currency exchange gain	–	–	–	10.2
Other financial income	2.3	12.4	9.0	13.4
Financial income	2.6	12.5	9.6	23.6
Interest expenses, leases	5.7	9.8	28.9	25.7
Amortized interest expense loans	35.1	7.3	71.2	30.7
Currency exchange loss	2.9	9.8	13.8	–
Other financial expenses	6.9	1.1	9.1	1.0
Financial expenses	50.6	28.1	123.0	57.4
Net financial items	–48.0	–15.6	–113.4	–33.9

The Group have derecognized NOK 20.9 million as part of amortized interest expense in Q4 due to the refinancing of the Group. The effect is the difference between book value of the existing debt measured at amortized cost and nominal value of the dept repaid.

NOTE 4 FINANCIAL ITEMS, continued.

Financial items – change in accounting principle

In 2021, the Group changed the accounting principle and presents currency exchange gains and losses net. Net currency exchange gains and losses are presented in financial income (gains) or financial expense (loss) depending of the net position of the Group.

	Annual report		This report
NOK million	2020	Change	2020
Interest income	0.0	0.0	0.0
Currency exchange gain	39.9	29.7	10.2
Other financial income	13.4	0.0	13.4
Financial income	53.3	29.7	23.6
Interest expenses, leases	25.7	–	25.7
Amortized interest expense loans	30.7	–	30.7
Currency exchange loss	26.8	26.8	–
Other financial expenses	3.9	2.8	1.0
Financial expenses	87.1	29.7	57.4
Net financial items	–33.9	–	–33.9

NOTE 5 INTANGIBLE ASSETS AND GOODWILL

AT DECEMBER 31, 2021

				Other
			Customer	intangible
NOK million	Goodwill	Brand	contracts	assets	Total
Carrying amount at January 1, 2021	1 070.8	38.4	66.2	4.3	1 179.7
Acquired in business combinations	190.5	14.4	28.9	1.2	235.0
Additions	–	–	–	0.6	0.6
Amortization and impairment	–	–5.2	–20.9	–1.9	–28.0
Disposals	–	–	–	–	–
Translation differences	–38.7	–2.3	–3.6	0.1	–44.5
Carrying amount at December 31, 2021	1 222.6	45.4	70.6	4.3	1 343.0
Useful life in years	Indefinite	10	3-5	3-5
Amortization plan	n.m	Linear	Linear	Linear

AT DECEMBER 31, 2020

NOK million	Goodwill	Brand	Customer contracts	Other intangible assets	Total
Carrying amount at January 1, 2020	775.5	21.1	38.5	3.1	838.2
Acquired in business combinations	270.0	19.2	38.3	–	327.5
Additions	–	–	–	1.6	1.6
Amortization and impairment	–	–3.1	–13.0	–0.9	–17.0
Disposals	–	–	–	–	–
Translation differences	25.3	1.3	2.3	0.5	29.4
Carrying amount at December 31, 2020	1 070.8	38.4	66.2	4.3	1 179.7
Useful life in years	indefinite	10	3-5	3-5
Amortization plan	n.m	Linear	Linear	Linear

NOTE 5 INTANGIBLE ASSETS AND GOODWILL, continued.

GOODWILL ALLOCATION AT SEGMENT LEVEL

	Dec 31,	Dec 31,
NOK million	2021	2020
Norway	456.0	421.8
Germany	487.6	428.1
Sweden	256.2	196.9
Denmark	22.8	24.1
Carrying amount	1 222.6	1 070.8

NOTE 6 LEASING

AT DECEMBER 31, 2021
Right-of-use assets	Buildings and	Vehicles and	Furniture,
NOK million	property	equipment	fixtures & other	Total
Carrying amount at January 1, 2021	181.5	410.1	7.9	599.4
Acquired in business combinations	42.2	41.0	3.3	86.4
Additions	65.1	125.1	2.4	192.6
Depreciation and impairment	–37.8	–69.2	–4.7	–111.7
Transfer to property, plant and equipment	–0.1	–28.7	–0.0	–28.8
Adjustments	6.0	–2.2	0.6	4.3
Translation differences	–5.5	–12.1	–0.4	–18.0
Carrying amount at December 31, 2021	251.3	464.0	9.0	724.3
Useful life in years	3-30	7-10	3-7
Depreciation plan	Linear	Linear	Linear

Lease liabilities	Buildings and	Vehicles and	Furniture,
NOK million	property	equipment	fixtures & other	Total
Carrying amount at January 1, 2021	186.5	361.9	8.0	556.4
Acquired in business combinations	42.2	41.0	3.3	86.4
Additions	65.1	125.1	2.4	192.6
Lease payments	–48.5	–109.8	–5.0	–163.4
Interest on the lease liability	12.3	16.2	0.4	28.9
Adjustments	8.7	5.5	0.6	14.8
Translation differences	–5.4	–11.2	–0.4	–17.0
Carrying amount at December 31, 2021	260.9	428.6	9.2	698.7
Current lease liabilities	52.9	98.3	4.3	155.5
Non-current lease liabilities	207.9	330.3	4.9	543.1

NOTE 6 LEASING, continued.

AT DECEMBER 31, 2020

Right-of-use assets	Buildings and	Vehicles and	Furniture,
NOK million	property	equipment	fixtures & other	Total
Carrying amount at January 1, 2020	138.4	333.0	6.3	477.6
Acquired in business combinations	36.5	16.3	1.5	54.3
Additions	29.2	126.4	4.0	159.6
Depreciation and impairment	–28.4	–56.0	–3.9	–88.3
Transfer to property, plant and equipment	–	–19.5	–0.4	–19.9
Adjustments	2.7	–1.9	–	0.8
Translation differences	3.1	12.0	0.4	15.5
Carrying amount at December 31, 2020	181.5	410.1	7.9	599.4
Useful life in years	3-30	7-10	3-7
Depreciation plan	Linear	Linear	Linear
Lease liabilities	Buildings and	Vehicles and	Furniture,
NOK million	property	equipment	fixtures & other	Total
Carrying amount at January 1, 2020	141.3	294.9	5.8	442.0
Acquired in business combinations	36.5	16.3	1.5	54.3
Additions	29.2	126.4	4.0	159.5
Lease payments	–35.9	–97.6	–3.9	–137.4
Interest on the lease liability	9.6	12.9	0.3	22.8
Adjustments	2.7	–1.9	–	0.8
Translation differences	3.2	11.0	0.3	14.5
Carrying amount at December 31, 2020	186.5	361.9	8.0	556.4

The Group has one rental contract with a remaining lease period exceeding 12 years.

Practical exemptions applied

The Group has decided not to recognize leases where the underlying asset has low value, and thus does not recognize lease obligations and right-of-use assets for any of these leases. Instead, the rental payments are expensed when they occur. The Group also does not recognize lease obligations and rights-of-use assets for short-term leases.

Current lease liabilities 37.2 89.9 3.6 130.8 Non-current lease liabilities 149.2 271.9 4.4 425.6

NOTE 7 PROPERTY, PLANT AND EQUIPMENT

AT 31 DECEMBER 2020

	Buildings	Vehicles and	Furniture,
NOK million	and property	equipment	fixtures & other	Total
Carrying amount at January 1, 2021	63.2	189.7	23.6	276.5
Acquired in business combinations	3.4	161.6	3.4	168.5
Additions	3.6	61.2	4.8	69.5
Transfer from right-of-use assets (see note 6)	0.1	28.7	0.0	28.8
Depreciation and impairment	–4.8	–80.3	–7.2	–92.3
Opening balance correction*	–	–5.4	–	–5.4
Disposals	–	–4.2	–0.1	–4.3
Translation differences	–1.5	–9.7	–0.7	–12.0
Carrying amount at December 31, 2021	63.9	341.6	23.8	429.3

AT 31 DECEMBER 2020

NOK million	Buildings and property	Vehicles and equipment	Furniture, fixtures & other	Total
Carrying amount at January 1, 2020	58.8	129.7	14.7	203.2
Acquired in business combinations	7.4	68.9	6.7	83.1
Additions	1.5	16.6	6.0	24.1
Transfer from right-of-use assets (see note 6)	–	19.5	0.4	20.0
Depreciation and impairment	–4.6	–48.1	–4.4	–57.2
Disposals	–1.9	–1.3	–0.1	–3.4
Translation differences	1.9	4.5	0.3	6.7
Carrying amount at December 31, 2020	63.2	189.7	23.6	276.5

* The correction of opening balance January 2021 relates to the transfer from leasing to PPE of bought out vehicles. The correction is recognized as depreciation.

NOTE 8 BORROWINGS

Interest-bearing loans as presented in the statement of financial position
NOK million	2021-12-31	2020-12-31
Non-current loans	264.1	768.8
Current portion of loans	61.2	101.3
Total interest-bearing loans	325.3	870.2
Specification of interest-bearing loans per currency
NOK million	2021-12-31	2020-12-31
EUR	68.4	447.1
SEK	16.6	158.3
NOK	240.4	264.8
Total interest-bearing loans	325.3	870.2

Borrowings

The Group have repaid existing loan facilities, replacing it with a new Revolving Facility Agreement securing the Group a total loan facility of NOK million 1 100. The Group are able to draw upon the facility as needed in any of the Groups currencies. The margin of the loan is 1.25% to 2.00% dependent on the leverage ratio. The facility is a three year agreement from the IPO December 2021 with two one year extention options. Of the total facility of NOK million 1 100, 244.4 is utilized (0). In addition, the Group has an overdraft and guarantee facility of NOK 50 million, where 2.5 (46.3) was utilized.

For the Group's borrowings, the carrying amount approximate the fair value.

Covenants

The bank loan facilities are subject to covenants measured as thresholds for certain KPIs. The Norva24 Group is in compliance with all covenants.

NOTE 9 BUSINESS COMBINATIONS

Acquired units during 2021	Country	Date	Ownership
Kjelsberg Transport AS	Norway	February 1	100%
GJ & Son AB	Sweden	February 1	100%
Mayer and Krüger (consists of 2 companies)	Germany	April 1	100%
GR Avloppsrensning i Stockholm AB	Sweden	June 1	100%
Malmberg Miljöhantering AB	Sweden	June 1	100%
Ulvsby Miljö AB (consists of 3 companies)	Sweden	June 30	100%
Decker Group (consists of 7 companies)	Germany	June 30	100%

The acquisitions will strengthen the Group's position in the existing segments and the operations of the acquired entities are similar to the existing operations. The Group considers them to be individually immaterial and therefore the acquisitions are shown jointly.

Total purchase consideration	301.9
Shares issued	8.4
(Fair value estimate at date of acquisition)
Earn-out/Contingent consideration	31.0
Cash paid	262.5
Purchase consideration NOK million	Jan-Dec 2021

Opening balance sheet
-----------------------	--	--

Other non-current assets	183.2
Brand	14.4
Customer relationships	28.9
Total assets	334.4
Other current liabilities	78.5
Other non-current liabilities	127.3
Deferred tax on excess values	17.2
Total Liabilities	223.0
Net identifiable assets	111.4
Goodwill	190.5
Total consideration for the shares	301.9

Revenue and profit/loss from acquisition date
to 31 December for the acquisition year	Jan-Dec
NOK million	2021
Revenue	253.8
Profit/loss for the period	29.3
Revenue and profit/loss from January 1 to
31 December for the acquisition year (pro forma)	Jan-Dec
NOK million	2021
Revenue	348.0
Profit/loss for the period	36.1

Goodwill consists of synergies from cost savings and the increase in market share. The acquired businesses also include the assembled workforce. These items are not identifiable assets, and are subsumed into goodwill. All purchase price allocations in 2021 are preliminary.

Earn-outs are conditional on the acquired entities reaching certain future financial targets such as revenue, EBITDA and EBITA. The Group accounts for earn-outs at fair value and accrues for based on the likelihood of achieving these targets and the expected future pay-out. In 2021 the Group recognized a cost of NOK 6.0 million related to an earn-out as a result of over performance in a subsidiary compared to previous expectations. In 2020 the Group recognized a gain of NOK 11.4 million. Gains are recognised as other financial income, losses as other financial expenses.

Transaction costs for the year amounted to NOK 8.9 million, which is recognized under Other operating expenses in statement of profit or loss.

NOTE 10 CHANGES IN SHARE CAPITAL

NOK million	Ordinary shares	Preference shares	Share capital	Additional paid in capital
At January 1, 2021	2 675 710	7 705 656	10.4	575.9
Capital increases	3 799	32 408	0.0	4.2
New parent share swap – Norva24 Holding AS (old parent company)	–2 679 509	–7 738 064	–10.4	9.9
New parent share swap – Norva24 Group AB (new parent company)	2 679 509	7 738 064	10.5	–
Capital reduction	–	–	–10.0	–
Capital increase	10 915	32 743	–	11.1
Share split	37 665 936	108 791 298	–	–
Conversion	116 562 105	–116 562 105	–	–
Long term incentive program	–	–	–	13.8
New shares from IPO*	25 555 556	–	0.1	817.9
At December 31, 2021	182 474 021	–	0.6	1 432.8

* Pending registration at Bolagsverket (the Swedish Companies Registration Office)

NOK million	Ordinary shares	Preference shares	Share capital	Additional paid in capital
At January 1, 2020	2 633 451	7 578 878	10.2	546.9
Capital increases	42 259	126 778	0.2	29.0
At December 31, 2020	2 675 710	7 705 656	10.4	575.9

Long term incentive program

The Group have long term incentive program for selected part of management. The program is equity settled where a maximum of 6 207 880 new share can be issued three years after the IPO. The numbers of shares to be issued is calculated as the difference between the share price after three years and the strike of the program that is 44.3 SEK pr Share, and the share price. The stock options is acquired by management at fair value and the proceeds is included in other paid in capital.

NOTE 11 SUBSEQUENT EVENTS

There have been no events after the balance sheet date that would have had a material impact on the financial statements, or the assessments carried out.

Parent Company

PARENT COMPANY CONDENSED STATEMENT OF PROFIT OR LOSS
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK million Note	2021	2020	2021	2020
Total operating revenue	–	–	–	–
Other operating expenses	–31.2	–	–31.2	–
Earnings before interest and taxes (EBIT)	–31.2	–	–31.2	–
Net financial items	0.9	–	0.9	–
Loss before income tax	–30.3	–	–30.3	–
Income tax expenses	16.7	–	16.7	–
Loss for the period	–13.6	–	–13.6	–
Other comprehensive income	–	–	–	–

PARENT COMPANY CONDENSED BALANCE SHEET
	Dec 31,	Dec 31,
SEK million Note	2021	2020
ASSETS
Non-current assets
Investment in subsidiaries	2 881.7	–
Deferred tax asset	16.7	–
Non-current intercompany receivables	879.9	–
Total non-current assets	3 778.3	–
Current assets
Current receivables	52.2	0.1
Current intercompany receivables	11.3	–
Cash and cash-equivalents	0.1	–
Total current assets	63.7	0.1
Total assets	3 842.0	0.1
EQUITY AND LIABILITIES
Equity
Restricted equity	0.6	0.1
Non-restricted equity	3751.9	–
Total equity	3 752.5	0.1
Current liabilities
Accounts payable	32.9	–
Other current liabilities	56.5	–
Total current liabilities	89.5	–
Total equity and liabilities	3 842.0	0.1

Declaration of the Board of Directors

The Board of Directors and Chief Executive Officer warrant and declare that this interim report gives a true and fair view of the Parent Company's and Group's operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group.

Stockholm, February 27, 2022

Vidar Meum Chairman

Allan Engström Arild Bødal Einar Nornes Board member Board member Board member

Mats Lönnqvist Linus Lundmark Monica Reib Board member Board member Board member

Terje Bøvelstad Ulrika Östlund Board member Board member

Henrik Damgaard CEO

QUARTERLY DATA FOR THE CONSOLIDATED GROUP
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
NOK million	2020	2020	2020	2020	2021	2021	2021	2021
Total operating revenue	344.8	363.5	368.5	445.7	408.9	486.5	541.0	588.9
EBITDA	64.8	89.0	92.5	95.6	75.3	101.8	117.8	136.2
EBITA	34.1	53.3	56.4	52.4	26.7	50.1	61.8	82.8
EBIT	30.2	49.7	52.4	46.9	20.3	43.0	54.6	75.6

NORVA24 | YEAR-END REPORT JANUARY-DECEMBER 2021 29

Key performance indicators

KEY FIGURES RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES, NOT DEFINED UNDER IFRS Line ID NOK million Source Calculation Oct-Dec 2021 Oct-Dec 2020 Jan-Dec 2021 Jan-Dec 2020 A Total operating revenue P&L 588.9 445.7 2 025.2 1 522.5 Profit/(Loss) for the period P&L 50.7 13.0 86.0 112.0 Earnings per share (basic and diluted), NOK P&L 0.36 0.09 0.81 1.87 Average number of ordinary shares outstanding 132 162 356 40 027 525 64 165 959 39 600 347 Growth in total revenue, % 31.8 25.9 32.9 18.3 Organic growth in total operating revenue, % 5.2 0.0 0.7 1.7 Acquired growth in total operating revenue, % 26.6 25.9 32.1 16.6 B Total operating expenses P&L 452.7 350.2 1 594.2 1 180.8 C EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) C=A–B 136.2 95.6 431.0 341.8 EBITDA margin, % C/A 23.1 21.4 21.3 22.4 D Depreciation and impairment of tangible assets (PPE and leasing right-of-use assets) Note 5 + Note 7 53.3 43.2 209.6 145.6 E EBITA E=C–D 82.8 52.4 221.5 196.2 EBITA margin, % E/A 14.1 11.8 10.9 12.9 F Depreciation, amortization and impairment of tangible and intangible assets P&L 60.6 48.7 237.5 162.6 G EBIT G=C–F 75.6 46.9 193.5 179.2 EBIT margin, % G/A 12.8 10.5 9.6 11.8 H Non-recurring items, expenses –0.8 10.5 30.8 15.7 H2 Non-recurring items, depreciation and amortization 0.0 0.0 5.4 0.0 I Adjusted EBITDA I=C+H 135.4 106.0 461.8 357.5 Adjusted EBITDA margin, % I/A 23.0 23.8 22.8 23.5 J Adjusted EBITA J=E+H+H2 82.0 62.9 257.7 211.9 Adjusted EBITA margin, % J/A 13.9 14.1 12.7 13.9 K Adjusted EBIT K=G+H+H2 74.8 57.4 229.7 194.9 Adjusted EBIT margin, % K/A 12.7 12.9 11.3 12.8 L Leasing payments Note 6 46.0 37.5 163.4 137.4 M Capital expenditures (additions less disposals) Note 7 24.1 4.5 65.2 20.7 N Cash capital expenditures N=L+M 70.1 42.0 228.6 158.1 O Cash EBITA O=C–N 66.1 53.6 202.5 183.7 P Adjusted cash EBITA P=I–N 65.3 64.1 233.2 199.4 Adjusted cash EBITA margin, % P/A 11.1 14.4 11.5 13.1 Q Net cash inflow from operating activities Cash flow Statement 139.0 135.0 337.4 353.8 R Cash conversion, % Q/I 102.6 127.3 73.1 99.0

Line Balance sheet key financials

ID	NOK million	Source	Calculation	31-12-2021	31-12-2020
AA	Non-current and current loans	Financial position		325.3	870.2
AB	Non-current and current lease liabilities	Financial position		698.7	556.4
AC	Cash and cash equivalents	Financial position		260.4	180.9
AD	Net debt		AD=AA+AB–AC	763.6	1 245.6
AE	Net debt/LTM adjusted EBITDA*		AE=AD/I	1.7	3.5
BA	Inventories	Financial position		10.8	2.7
BB	Accounts receivable	Financial position		281.4	238.8
BC	Other current receivables	Financial position		171.2	60.8
BD	Accounts payable	Financial position		144.2	86.5
BE	Other current payables	Financial position		378.6	217.3
BF	Net working capital		BF= BA+BB+BC-BD–BE	–59.3	–1.5
BG	Net working capital/LTM total revenue, %		BG=BF/A	–2.9	–0.1
CA	Total assets	Financial position		3 225.1	2 544.5
CB	Current liabilities	Financial position		764.8	567.3
CC	Capital employed		CC=CA–CB	2 460.3	1 977.2
CD	Return on capital employed, %		CD=G(LTM)/CC	7.9	9.1

* LTM – Last twelve months

SEGMENT KEY PERFORMANCE INDICATORS
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	2021	2020	2021	2020
Segment total operating revenue
Norway	220.5	199.6	801.5	738.6
Germany	197.7	109.6	646.3	285.2
Sweden	99.8	60.7	306.6	192.2
Denmark	70.9	75.8	270.8	306.4
Total operating revenue	588.9	445.8	2 025.2	1 522.5
Segment EBITDA
Norway	54.5	59.7	203.4	203.8
Germany	44.8	13.7	163.9	68.0
Sweden	20.6	17.1	69.4	57.4
Denmark	50.1	12.3	72.1	41.8
Corporate & other	–33.9	–7.3	–77.8	–29.2
Total EBITDA	136.2	95.5	431.0	341.7
Segment EBITDA margin, %
Norway	24.7	29.9	25.4	27.6
Germany	22.7	12.5	25.4	23.8
Sweden	20.7	28.1	22.6	29.8
Denmark	70.7	16.2	26.6	13.6
Norva24 Group	23.1	21.4	21.3	22.4
Segment adjusted EBITDA
Norway	55.0	59.7	204.7	204.7
Germany	51.9	24.2	174.0	78.6
Sweden	20.9	17.1	72.2	58.3
Denmark	9.9	12.3	31.9	41.8
Corporate & other	–2.3	–7.3	–20.9	–25.8
Total adjusted EBITDA	135.3	105.9	461.8	357.4
Segment adjusted EBITDA margin, %
Norway	25.0	29.9	25.5	27.7
Germany	26.2	22.1	26.9	27.5
Sweden	20.9	28.1	23.5	30.3
Denmark	14.0	16.2	11.8	13.6
Norva24 Group	23.0	23.8	22.8	23.5

NORVA24 | YEAR-END REPORT JANUARY-DECEMBER 2021 32

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
NOK million	2021	2020	2021	2020
Segment EBITA
Norway	33.7	42.1	122.4	139.2
Germany	29.0	6.1	108.2	47.8
Sweden	10.1	12.4	36.3	39.8
Denmark	43.9	–1.0	32.3	–1.5
Corporate & other	–33.9	–7.3	–77.8	–29.2
Total EBITA	82.8	52.3	221.5	196.2
Segment EBITA margin, %
Norway	15.3	21.1	15.3	18.9
Germany	14.7	5.6	16.7	16.8
Sweden	10.1	20.4	11.9	20.7
Denmark	61.9	–1.4	11.9	–0.5
Norva24 Group	14.1	11.7	10.9	12.9
Segment adjusted EBITA
Norway	34.2	42.1	126.2	140.1
Germany	36.0	16.6	119.1	58.4
Sweden	10.3	12.4	39.6	40.7
Denmark	3.7	–1.0	–6.3	–1.5
Corporate & other	–2.3	–7.3	–20.9	–25.8
Total adjusted EBITA	82.0	62.9	257.7	211.9
Segment adjusted EBITA margin, %
Norway	15.5	21.1	15.7	19.0
Germany	18.2	15.1	18.4	20.5
Sweden	10.4	20.4	12.9	21.2
Denmark	5.3	–1.4	–2.3	–0.5
Norva24 Group	13.9	14.1	12.7	13.9

Definitions

	DEFINITIONS AND EXPLANATIONS OF KEY PERFORMANCE INDICATORS
Measure	Definition	Reason for use
Total operating revenue growth	Change in total operating revenue as a percentage of total operating revenue during the comparison period, i.e., the previous year or quarter.	Change in total operating revenue reflects the Company's realised operating revenue growth over time.
Organic growth in total operating revenue	Change in total operating revenue in comparable units after adjustment for acquisition effects, as a percentage of total operating revenue during the comparison period.	Organic total operating revenue growth excludes the effects of changes in the Company structure, which enables a comparison of operating revenue over time.
Acquired growth in total operating revenue	Change in total operating revenue as the percentage change from the comparison period of total operating revenue during the comparison period, driven by acquisitions. Acquired total operating revenue is defined as total operating revenue during the period attributable to companies which have been acquired during the most recent 12-month period and for these companies only operating revenue until 12 months after acquisition closing date.	Acquired growth – Total operating revenue growth reflects the acquired units' effects on total operating revenue.
EBITDA	Earnings before interest, taxes, depreciation and amortization.	EBITDA provides an overall picture of profit generated from the operating activities and is a supplement to the operating profit (EBIT).
EBITDA margin	EBITDA as a percentage of total operating revenue.	EBITDA margin is used to measure operating profitability and indicates the Company's operating earnings capacity.
EBITA	Earnings before interest, taxes and amortization.	EBITA provides an overall view of profit generated by operating activities and is a supplement to the operating profit.
EBITA margin	EBITA in relation to total operating revenue.	EBITA margin is used to measure operating profitability and indicates the Company's operating earnings capacity.
EBIT margin	Earnings before interest and taxes (EBIT) in relation to total operating revenue.	Operating margin enables comparisons of the Company's profitability regardless of capital structure or tax situation.
Non-recurring items	Items affecting comparability such as acquisition costs, integration costs and listing costs.	Enables comparison of profitability measures without items affecting comparability.
Adjusted EBITDA	EBITDA adjusted for non-recurring items.	Enables comparison of EBITDA without items affecting comparability with other periods. Adjusted EBITDA is a measure that the Company regards as relevant for investors who wish to understand income generation before investments in noncurrent assets and items affecting comparability.
Adjusted EBITDA margin	Adjusted EBITDA as a percentage of total operating revenue.	Adjusted EBITDA margin excludes the effect from items affecting comparability, which enables a comparison of the underlying operating profitability over time.
Adjusted EBITA	EBITA adjusted for non-recurring items.	Enables comparison of EBITA without items affecting comparability with other periods. Adjusted EBITA is a measure that the Company regards as relevant for investors who wish to understand income generation before investments in noncurrent assets and items affecting comparability.
Adjusted EBITA margin	Adjusted EBITA as a percentage of total operating revenue.	Adjusted EBITA margin excludes the effect from items affecting comparability, which enables a comparison of the underlying operating profitability over time.

Measure	Definition	Reason for use
Adjusted EBIT	Earnings before interest and taxes (EBIT) adjusted for non-recurring items.	Adjusted EBIT (operating profit) excludes the effect from items affecting comparability, which provides an over picture of profit generated from the operating activities.
Adjusted EBIT margin	Adjusted operating profit as a percentage of total operating revenue.	Adjusted EBIT (operating margin) excludes the effect from items affecting comparability, which enables a comparison of the underlying business over time.
Cash capital expenditures	Lease payments for vehicles including interest and amortization of vehicle lease liability, rental payments for real estate and capital expenditures (investments in owned vehicles and equipment less disposals)	Cash capital expenditures is used as an alternative measure for the Group's capital expenditures to reflect that leasing agreements are capitalized upfront while the cash payments are done over the lease period.
Cash EBITA	EBITDA less cash capital expenditures	Cash EBITA provides an overall view of profit generated by operating activities and is a supplement to the operating profit. The measure is comparable to EBITA, but instead EBITDA less depreciation of fixed and leased assets, it is adjusted for the cash expenditures to such assets. This will show the impact of timing of CAPEX and the impact of financial lease on profitability.
Adjusted cash EBITA	Cash EBITA adjusted for non-recurring items	Cash EBITA adjusted for non-recurring items affecting comparability which enables a comparison of the underlying operating profitability over time.
Net debt	Total interest bearing liabilities less cash and cash equivalents. Total interest bearing liabilities consists of non-current and current loans, non-current and current leasing liabilities according to IFRS 16, and loans from shareholders.	Net debt is used to monitor the interest-bearing liabilities development and monitor the level of the refinancing requirement. The measure is also used as the numerator in the Net debt ratio used to monitor financial leverage.
Net debt/ LTM adjusted EBITDA	Net debt in relation to twelve-month adjusted EBITDA. Pro forma EBITDA includes all operations within the Group for the full last twelve month period.	The Company uses the Net debt ratio to monitor the level of financial leverage.
Net working capital	Inventory, accounts receivable and other current receivables less trade payables and other current liabilities.	The measure shows how much net working capital is allocated in the operations and is useful to indicate how effectively net working capital is used.
Net working capital/ operating revenue	Net working capital in relation to the pro forma rolling twelve-month operating revenue.	Net working capital ratio enables the Company to measure its net working capital over time.
Capital expenditures	Capital expenditures is defined as funds used by the Group to acquire, upgrade, and maintain owned physical assets such as property, buildings, vehicles, or equipment. Excluding acquisitions and divestments.	Capital expenditures is used to measure the required accounted invested funds to acquire, upgrade, and maintain the Company's physical assets.
Net cash inflow from operating activities	From the Cash flow statement.	Operating cash flow is used to monitor cash flows gene rated by operating activities. The measure is also used as the numerator in the calculation of cash conversion.
Cash conversion	Net cash inflow from operating activities in relation to adjusted EBITDA.	Cash conversion enables the Company to monitor how efficiently the Company manages operating investments and working capital as well as the operating activity's ability to generate cash flows.
Capital employed	Total assets less current liabilities.	Capital employed is a measure which the Company uses for calculating the return on capital employed and for measuring how efficient the Company is without taking goodwill generated in connection with acquisition into account.
Return on capital employed	EBIT in relation to Capital employed.

History

Although the oldest local branch of Norva24 was founded in 1919 in Norway as a family business offering UIM services with horses and carriages, Norva24 in its current form was created in 2015 through a merger of five local UIM companies in Norway, in order to bring a disruptive business model to and professionalize the UIM services industry. In connection with the establishment of Norva24, the Valedo Partners Fund II AB invested in the Group.

Current position

Norva24 is one of the leading European players in the UIM industry with strong market presence within all its Northern European markets; Norway, Germany, Sweden and Denmark.

In 2021 Norva24 exceeded NOK 2.1 billion in proforma revenues, strengthened the network to 66 branches, increased the number of employees to 1 450 and completed Norva24's 32nd acquisition.

0 Strictly private and confidential Source: Company information. Norva24 is operating in many different parts of the Underground Infrastructure Maintenance serving a number of different types of customers. UIM services are mission critical and essential for society.

Vision & Core values

"Our long-term vision is to build a European market leader and lighthouse in Underground Infrastructure Maintenance (UIM). Norva24's vision is to become the leading European operator in our industry and an inspiration to the UIM industry development in Europe"

Values and Guiding Principles

Passion

Trust

Let these values be guiding for our business:

• We deliver what's been agreed
• We are competent and deliver high professional quality and precision
• We see and understand the customers needs
• We show decisiveness by getting things done, and seek help from others when needed to get the job done
• We have passion for our job and will always help
• We are focused at finding solutions and have a positive appearance when meeting customers and colleagues
• We are uncomplicated and informal
• We meet customers and colleagues with a smile

Medium term financial targets

Revenue growth

Target to achieve revenue of around NOK 4.5bn by 2025 while achieving an average organic growth per annum of at least in line with market growth.

Profitability

Target to achieve an adjusted EBITA margin of 14-15% in the medium term.

Capital structure

Norva24's capital structure shall enable a high degree of financial flexibility and allow for acquisitions. Target steady state net debt ratio (including IFRS16 lease liabilities) should normally not exceed 2.5x adjusted EBITDA, other than temporarily as a result of M&A. Temporarily is defined as maximum four calendar quarter sequentially.

Dividend Policy

As part of Norva24's vision and strategy, it intends to reinvest cash flows into growth and expansion initiatives, including acquisitions, and as such does not expect to pay annual dividends to its shareholders in the medium term.

Shareholder information & financial calendar

TOP 10 OWNERSHIP STRUCTURE DECEMBER 31, 2021

Shareholder	Total shares	Ownership, %
Valedo Partners Fund II AB	60 346 567	33.07
Swedbank Robur Fonder	18 055 555	9.89
Invest24 AS	12 519 326	6.86
DNB Fonder	5 465 848	3.00
Carnegie Fonder	4 050 000	2.22
Tredje AP-fonden	3 857 324	2.11
AQP Holding AS	3 446 536	1.89
Livförsäkringsbolaget Skandia	3 439 194	1.88
Voß, Andreas	3 409 851	1.87
JKT Birkeland Invest AS	3 140 574	1.72
Other	64 743 246	35.48
Total	182 474 021	100.0

Contact information

Stein Yndestad, Group CFO Tel: +47 916 86 696 stein.yndestad@norva24.com

Sture Stölen, Head of IR Tel: +46 723 68 65 07 sture.stolen@norva24.com

ir@norva24.com

Financial calendar

Annual report 2021	April 25, 2022
Interim report January-March 2022	May 25, 2022
Annual General Meeting 2022	May 25, 2022
Interim report January-June 2022	August 24, 2022

Norva24 Grandeveien 13, 6783 Stryn, Norway ir@norva24.com www.norva24.com