NRC Group — Earnings Release 2017

Nov 7, 2017

NRC Group ASA - Third quarter 2017 result report and presentation

NRC Group ASA - Third quarter 2017 result report and presentation

Record results, solid order intake and strong market outlook

Today, 7 November 2017, NRC Group has released its financial results for the

third quarter of 2017.

The company will present the results at 11.30 AM (CET) at Carnegie offices,

Fjordallèen 16, Aker Brygge, Oslo. The presentation will be held by CEO Øivind

Horpestad and CFO Dag Fladby.

Below you will find a summary and highlights from the report.

Key events:

-       All time high quarterly revenue and EBITDA

-       Record EBITDA margin driven by strong project execution

-       Closed acquisitions of ALTi and SBB

-       Subsequent acquisition of Norwegian fiber specialist Fibertech

Key figures Q3:

-       Revenues of NOK 776.5 million in 2017 vs NOK 599.9 million in 2016

-       EBITDA of NOK 110.5 million in 2017 vs NOK 81.2 million in 2016

-       EBITDA margin of NOK 14.2% in 2017 vs NOK 13.5% in 2016

Order intake:

-       Order backlog of NOK 2,417 million, an increase of 73%

-       Order intake of NOK 642 million

-       Six announced contracts during the quarter

Comments on third quarter 2017 results:

NRC Group delivered all-time high revenue and EBITDA and record EBITDA margin in

the third quarter, reflecting high activity during the peak season and a

continued strong project execution.

Revenue was NOK 776.5 million in the quarter, an increase of 29.4% compared with

the third quarter 2016. EBITDA was NOK 110.5 million, compared with NOK 81.2

million in the same period last year. This equalled an EBITDA margin of 14.2%

(13.5%). The Swedish operations performed strong this quarter in terms of EBITDA

and EBITDA margin. The strong margin is due to a favorable project mix and

excellent project execution. A new management team has been in place in Norway

from September, and the team has strong focus on improving the operational

performance.

Order intake for the third quarter was NOK 642 million and the backlog amounted

to NOK 2,417 million at the end of September. In the third quarter, NRC Group

signed a contract in Norway worth NOK 155 million for groundwork at the Ullevål

crossroads in Oslo and a NOK 122 million contract for port infrastructure

upgrades on the Brekstad-Valset ferry line. In Sweden, NRC Group was awarded a

SEK 87 million contract for groundwork, track, electro and signal/

-telecommunication related to the rebuilding of the terminal C at Södertälje in

Stockholm.

The acquisitions of ALTi Bygg og Anlegg AS and Signal and Banbyggarna i Dalarna

Aktiebolag were both closed in early July.

In October, NRC Group acquired Fibertech AS. The acquisition strengthens NRC

Group's competencies within fibre optic lines ahead of the upcoming EMRTS

development in both Norway and Sweden.

NRC Group continues its proactive and high acquisitions activity in line with

NRC Group's strategy. The recent acquisitions have provided NRC Group with

additional expertise and capacity as a turnkey railway and ground entrepreneur,

which has been reflected in recent contract awards. These competencies positions

NRC Group for larger upcoming contracts in its core market, while also providing

flexibility to utilize capacity on a wider range of transport infrastructure

projects.

The positive investment outlook for the Nordic railway and other transport

infrastructure is supported by strong macro trends and political commitment. The

approved National Transport Plan (NTP) in Norway and the proposed NTP for Sweden

give better visibility and confirm the commitment to increased railway spending

and shift towards larger projects.

NRC Group continues to be uniquely positioned to benefit from the strong macro

outlook, and is committed to its strategy to consolidate the market and to

deliver good organic growth in the coming years.

The third quarter 2017 result report and result presentation can be found

attached and will be made available on the company's homepage: www.nrcgroup.com.

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 contractor within railway infrastructure in Norway and

Sweden. The company is a supplier of all track-related infrastructure services,

including groundworks, specialized track work, safety, electro, telecom- and

signalling systems. The company works within rail, metro, tram segments and

close related infrastructure. NRC Group has experienced significant growth since

its inception in 2011 and has a vision of becoming the leading Nordic

entrepreneur within railway infrastructure.

For more information: www.nrcgroup.com

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.