NRC Group — Earnings Release 2017

Aug 15, 2017

NRC Group ASA- Second quarter 2017 result report and presentation

NRC Group ASA- Second quarter 2017 result report and presentation

Seasonal increase in activity and record high order intake

Today, 15 August 2017, NRC Group ASA has released its financial results for the

second quarter of 2017.

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

The company will present the results at 11.00 AM (CET) at Arctic Securities

offices, Haakon VIIs gate 5, Oslo. The presentation will be held by CEO Øivind

Horpestad and CFO Dag Fladby.

Key events:

-       Record-high order intake of NOK 1,231 million

-       Adding groundwork and project management expertise by acquiring ALTi

Bygg og Anlegg AS

-       Initiated and executed new share buyback programme

Key figures Q2 (Reported figures ex. SBB and ALTi):

-       Revenues of NOK 581.6 million in 2017 vs NOK 503.6 million in 2016

-       EBITDA of NOK 43.0 million in 2017 vs NOK 22.9 million in 2016

-       EBITDA margin of 7.4% in 2017 vs 4.5% in 2016

-       Order backlog of NOK 2,451 million, an increase of 52% vs 2016

Key figures first half 2017 (Reported figures ex. SBB and ALTi)

-       Revenues of NOK 922.5 million in 2017 vs NOK 823.4 million in 2016

-       EBITDA of NOK 49.0 million in 2017 vs NOK 23.8 million in 2016

-       EBITDA margin of 5.3% in 2017 vs 2.9% in 2016

Contract wins:

-       Historically largest contract win of SEK 700 million for groundwork

related to Haga Station in Gothenburgh confirms strategy to position for larger

contracts has been successful

-       Appointed to SEK 155 million groundwork contract for new road between

Dala-Järna and Vansbro

-       Appointed to SEK 172 million contract for track renewal at Alingsås in

Sweden

-       Appointed to SEK 47 million contract for ground and catenary foundation

work at Gällivare- Kiruna

Comments on second quarter and first half 2017 results:

NRC Group delivered a quarter with revenue reflecting the normal seasonal

increase in activity. Revenue was NOK 581.6 million in the quarter, which is an

increase of 15.5% compared with the second quarter of 2016. EBITDA was NOK 43.0

million, compared with NOK 22.9 million in same period last year. This equalled

an EBITDA margin of 7.4% (4.5%).

Revenue for the first six months of 2017 was NOK 922.5 million, an increase of

12.0% from the first half of 2016. EBITDA was NOK 49.0 million (NOK 23.8

million) and the EBITDA margin was 5.3% (2.9%). Sweden is performing well, as

well as most of the companies in Norway. However, we are not satisfied with the

performance in NRC Rail and further measures will be taken to improve the

operational performance.

Order intake for the second quarter amounted to NOK 1,231 million and the

backlog was NOK 2,451 million at the end of June, which is the highest order

backlog ever for NRC Group. The company won its historically largest contract in

the quarter valued at SEK 700 million for groundwork related to the Station Haga

project in Gothenburg. NRC Group will execute the contract in a consortium with

leading European contractors. The second-largest contract won in the quarter,

also from The Swedish Transport Administration (Trafikverket), was for track

renewal at Alingsås worth approximately SEK 172 million. The contract involves a

wide range of rail services such as groundwork, track, electro and

signal/telecom, confirming NRC Group's position as a turnkey railway

entrepreneur.

On 29 June, NRC Group announced the acquisition of ALTi Bygg og Anlegg AS. The

company has employees with extensive experience from project management and

previous leading positions within AF Gruppen. The acquisition of ALTi will

further strengthen the competitiveness of NRC Group's Norwegian operations in

the growing rail infrastructure market where project management, groundwork and

construction expertise is key. The project management expertise from ALTi, will

complement the existing knowhow and capacity of NRC Group. It will further

strengthen NRC Group's overall capabilities, enabling the company to undertake

larger and more complex projects also simultaneously.

The acquisition of HAG Anlegg closed in beginning of April, while the SBB and

ALTi acquisitions were closed in the beginning of July.

All the acquisitions are in line with NRC Group's strategy of building

competencies as a turnkey railway entrepreneur and to consolidate the market for

rail, tram and metro construction services.

NRC Group completed the adjustment to workforce in NRC Rail AS initiated in the

first quarter to focus on project management capabilities, and harmonise the

group's organisational and business structure. The process affected

approximately 40 employees.

At the end of March and at 11 May, NRC Group initiated a share buyback programme

of up to NOK 20 million. The acquired treasury shares may be used as

consideration shares for acquisitions and for the company's employee share

programme.

It is NRC Group's ambition over time to distribute a dividend of minimum 30% of

the profit for the year, subject to a satisfactory underlying financial

performance. A dividend of NOK 0.80 per share for 2016 was paid to shareholders

in May.

The positive investment outlook for the Nordic railway is supported by strong

macro trends and political commitment. The new Norwegian National Transport Plan

for the next 12-year period, approved by Parliament on 19 June, and the proposed

National Transport Plan in Sweden reaffirm the political commitment to increased

railway spending.

NRC Group is committed to its strategy to consolidate the market and deliver

organic and acquired growth in coming years.

The second quarter and first half 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.