NRC Group — Earnings Release 2016

Aug 18, 2016

Q2 2016 SIGNIFICANT REVENUE AND PROFIT IMPROVEMENT

Q2 2016 SIGNIFICANT REVENUE AND PROFIT IMPROVEMENT

Today, 18 August 2016, NRC Group has released its

first quarter and second half 2106 result report.

Below you find summary and highlights from the report.

NRC Group ASA will present its second quarter and

first half 2016 results at 12:00 (CET) at the offices

of Carnegie at Grundingen 2, Oslo, fifth floor. The

presentation will be held by CEO Øivind Horpestad and

CFO Dag Fladby.

Highlights

- Revenues increased by 103 per cent compared to

Q2 2015

- EBITDA increased by 168 per cent compared to

Q2 2015

- Strong order backlog of NOK 1,699 million (NOK

1,594 million)

- Closed acquisition of the Norwegian signal

company Railcap

- Selected as subcontractor to Alstom in the

coming ERTMS tender process

- Building an efficient project organisation for

large upcoming projects in Norway and Sweden

Key figures Q2 2016

- Revenues of NOK 553.7 million (NOK 273.1

million)

- EBITDA of NOK 43.4 million (NOK 16.2 million)

- EBITA of NOK 37.1 million (NOK 11.9 million)

- EBIT of NOK 33.6 million (NOK 8.3 million)

Key figures first half 2016

- Revenues of NOK 914.9 million (NOK 448.2

million)

- EBITDA of NOK 47.8 million (NOK 11.6 million)

- EBITA of NOK 36.1 million (NOK 3.3 million)

- EBIT of NOK 29.1 million (NOK -3.8 million)

Comments on second quarter 2016 and first half of 2016

NRC Group had a strong quarter and continued with

significant revenue and profit growth. Total revenue

growth was 103 per cent compared to second quarter

2015. The EBITDA increased by 168 per cent to reach

NOK 43.4 million with an EBITDA margin of 7.8 per

cent.

The good market conditions have contributed to

maintaining the order backlog. As of second quarter

2016, the order backlog amounted to approximately NOK

1.7 billion, an increase of 6.6 per cent compared to

Q2 2015.

NRC Group is focusing on organic growth and is

continuing to add growth through a value-creating

acquisition strategy. The acquisition of Railcap,

completed in May 2016, will significantly strengthen

the signalling resources and strengthen NRC Group's

market position in general.

In June 2016, Jernbaneverket announced that Alstom was

prequalified to the coming ERTMS tender process in

Norway. NRC Group is selected as one of the

subcontractors to Alstom. NRC Group's part of the

scope will be all on-site installation work in

addition to the test and commissioning of the system.

A potential contract to Alstom will give the NRC Group

a unique experience for possible future service

agreements for the ERTMS system. The ERTMS tender

process is a NOK 26 billion investment for a

countrywide implementation of the new signalling

system rollout within 2030.

As communicated in the first quarter 2016 report a new

joint office has been set up in Gothenburg in Sweden.

During the first half of 2016, NRC Group has recruited

and built an efficient project organisation, which has

the competence and experience to be a competitive

provider for large upcoming projects in Norway and

Sweden.

Entering peak season after a solid start of the year

we expect a strong second half of 2016.

The financial report will be made available under the

company's ticker "NRC" on www.newsweb.no and on the

company's homepage: www.nrcgroup.no.

For further information, please contact Dag Fladby,

Chief Financial Officer, NRC Group ASA on tel: +47 90

89 19 35.

About NRC Group:

NRC Group is a leading company within the Nordic

infrastructure market. The group operates within two

business segments, Rail and Geo.

RAIL: The Rail division is a fully integrated rail

infrastructure contractor covering the Norwegian and

Swedish markets. The Rail division is a full-range

supplier for the construction of all types of rails

including train, tram and subway. Main service

offerings include groundwork, specialized track work,

power supply and signalling work. The Rail division

has all the necessary approvals to work within the

train, tram and subway segments.

GEO: The Geo division operates within acquisition,

processing and modelling of geographic information.

The Geo division supplies a wide range of mapping and

geographic services that satisfy various standards and

specifications, in addition to customized client

solutions.

This information is subject of the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act.