NRC Group — Earnings Release 2017

May 11, 2017

NRC GROUP - FIRST QUARTER 2017 RESULT REPORT AND PRESENTATION

NRC GROUP - FIRST QUARTER 2017 RESULT REPORT AND PRESENTATION

Acquisitions strengthened position

Today, 11 May 2017, NRC Group has released its financial results for

the first quarter of 2017.

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

The company will present the results at 12.00 CET at Hotel

Continental in Stortingsgaten 24/26 in Oslo. The presentation will

be held by CEO Øivind Horpestad and CFO Dag Fladby.

Key events:

- Adding core competencies by acquiring Norwegian construction

company HAG Anlegg AS

- Strengthened position in Sweden by acquiring Swedish railway

infrastructure company SBB AB

- Historically high NTP for Norway proposing NOK 319 billion

in rail investments over next 12 years

- Increase in tender size in Norwegian market

Key figures (Reported figures ex. HAG and SBB):

- Revenues of NOK 340.9 million in Q1 2017 vs NOK 319.8

million in Q1 2016

- EBITDA of NOK 6.0 million in Q1 2017 vs NOK 0.9 million in

Q1 2016

- EBITDA margin of 1.8% Q1 2017 vs. 0.3% in Q1 2016

- Order backlog of NOK 1,548 billion

Contract wins:

- Appointed to NOK 202 million contract for catenary work at

MOI - Egersund rail track

- Appointed to SEK 89 million contract for ground and track

related work at Hamnbanan

- Unannounced orders of NOK 189 million

Comments on first quarter 2017 results:

NRC Group delivered a satisfying quarter with revenue reflecting the

normal seasonal fluctuation. Revenue was NOK 340.9 million in the

quarter, which is an increase of 6.6% compared with the first

quarter of 2016. EBITDA was NOK 6.0 million, compared with NOK 0.9

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

1.8% (0.3%).

Order intake for the first quarter amounted to NOK 487 million and

the backlog was NOK 1,548 million at the end of March.

NRC Group has initiated an adjustment to the workforce in NRC Rail

AS to increase focus on project management capabilities, and

harmonise the group's organisational and business structure.

Two acquisitions were announced late in the quarter, 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.

In Norway, NRC Group agreed to acquire HAG Anlegg AS. HAG provides

construction work and project- and site management within transport

and infrastructure, specializing in surface work and concrete

constructions. HAG's project management expertise will complement

NRC Group and enable the group to undertake larger and more complex

projects also simultaneously. The acquisition strengthens NRC

Group's tendering position towards Oslo's NOK 3 billion road and

tram upgrade program. In April, Geir Nilsen, the current CEO of HAG,

has been appointed Managing Director for NRC Norway.

In Sweden, NRC Group agreed to take over the railway infrastructure

and signal company Signal & Banbyggarna i Dalarna Aktiebolag (SBB).

The acquisition improves the competitiveness of the Swedish

operations and widens the geographical footprint to include

Stockholm, Skåne and Northern Sweden, adding to NRC Group's already

established position in the regions of Karlstad and Gothenburg. The

combined NRC Group and SBB will be well positioned to participate in

the new transport package for the central Stockholm requiring about

SEK 25 billion of investments. The CEO of SBB, Pär Opard, will

become a member of the Swedish management.

The full-year 2017 revenue of the two acquisitions is estimated to

approximately NOK 500 million.

NRC Group initiated a share buy-back program of up to NOK 10 million

to be executed in accordance with the mandate provided by the 2016

AGM over the period from 31 March to 30 June 2017. The acquired

treasury shares may be used as consideration shares for acquisitions

and for the company's employee share program.

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 approved at the Annual General Meeting 3 May 2017.

The positive investment outlook for the Nordic railway is supported

by strong macro trends and political commitment. The National

Transport Plan for the next 12-year period in Sweden and Norway

reaffirms the political commitment to increased spending on railway

investments. NRC Group remains committed to its strategy to

consolidate the market and deliver organic and acquired growth in

coming years.

The first quarter 2017 result report and result presentation can be

found attached and will be made available 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 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.no

This information is subject of the disclosure requirements pursuant

to section 5-12 of the Norwegian Securities Trading Act.