NRC Group — Earnings Release 2016

May 20, 2016

NRC Group - Report for first quarter 2016 results

NRC Group - Report for first quarter 2016 results

HIGHLIGHTS

- Strong organic growth - revenues improved by 106 per

cent compared to Q1 2015

- Record high order backlog of NOK 1,863 million (NOK

761 million) - improved by 144 per cent compared to Q1

2015

- First ISO certified railway construction company in

Norway

- Divestment of Blom Nordic and acquisition of Railcap

to increase focus on rail infrastructure

KEY FIGURES Q1 2016

- Revenues of NOK 356.1 million (NOK 172.5 million)

- EBITDA of NOK 5.1 million (NOK -5.0 million)

- EBITA of NOK -0.1 million (NOK -8.9 million)

MAJOR CONTRACT AWARDS

- SEK 159 million contract appointed by Trafikverket

for track renewal

- SEK 117 million contract appointed by Trafikverket

for track and switch renewal

- SEK 73 million contract by Trafikverket for changing

rails

- SEK 115 million contract by Trafikverket for

groundwork, track, electro and signal work

- NOK 65 million contract by Sporveien for groundwork,

track, electro and signal work

- NOK 40 million contract by Jernbaneverket for

preparatory ballast cleaning

COMMENTS ON FIRST QUARTER 2016

NRC Group delivered strong revenue and order book

growth in the first quarter of 2016. The integration

of the Swedish companies acquired in the second half

of 2015 have so far been successful.

To increase our market share we will continue to build

on our good entrepreneurial culture and strength as a

full service rail specialist.

After the end of the first quarter, we acquired the

Norwegian company Railcap. The acquisition will

significantly strengthen our signalling resources, and

will enable us to undertake larger projects going

forward. Railcap will further be a key resource for

NRC Group in Norway as part of the extensive European

Rail Traffic Management System (ERTMS) roll-out, which

is expected to be completed within 2030. The coming

ERTMS project will be the largest signal project ever

undertaken in Norway, with an estimated investment

frame of NOK 12bn and up to NOK 30bn including

associated work.

In March, NRC group entered into an agreement to

divest its Geo business in Norway, Sweden and Finland

to Terratec AS.

The NRC Group's Rail division became the first ISO

certificated railway constructor in Norway. All

policies, practices and procedures of NRC Rail AS were

reviewed as part of this process. This further ensures

consistent quality and secures reliability,

availability, safety and efficiency in the services we

provide.

We have a positive outlook for 2016. Based on the

momentum achieved in the first quarter, expected

market growth and strong order book, we are confident

we are well positioned for 2016 and the future.

The financial report and the presentation document

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 ASA:

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.