NRC Group — Earnings Release 2016

Feb 15, 2017

Fourth quarter 2016 result report and presentation

Fourth quarter 2016 result report and presentation

All-time high results for 2016

Today, 15 February 2017, NRC Group has released its

financial results for the fourth quarter of 2016.

Below you will find a summary and highlights from the

report.

The results will be presented at 11:00 (CET) at ABG Sundal

Collier offices, Munkedamsveien 45 E, 7th floor, Oslo. The

presentation will be held by CEO Øivind Horpestad and CFO

Dag Fladby.

Highlights

- All-time high fourth-quarter revenue and profit

- Full year 2016 organic growth of 59%

- Fourth quarter order intake of NOK 570 million

- Order backlog of NOK 1.4 billion in Q4 2016

Financials (pro forma figures)

- Revenues of NOK 564.7 million in Q4 2016 vs NOK 439.8

million in Q4 2015

- EBITDA of NOK 56.4 million in Q4 2016 vs NOK 39.5 million

in Q4 2015

- EBITDA margin of 10% in Q4 2016 vs. 9% in Q4 2015

- Proposed dividend of NOK 0.80 per share

Key events

- Raised NOK 210 million through private placement of 3

million new shares

- Sale of Blom UK - remaining Geo business classified as

held for sale

- Acquisition of Gravco AS

Comments on fourth quarter 2016:

NRC Group delivered another strong quarter with significant

top-line revenue and profit growth. The organization

continues to deliver and focus on good project execution and

cost control which are the main drivers for the improved

results. Total revenue was NOK 564.7 million in the quarter,

which is an increase of 28% compared with the fourth quarter

of 2015. EBITDA increased by 43% to NOK 56.4 million. This

equalled an EBITDA margin of 10%, up from 9% in the same

period of 2015.

Cash flow from operating activities in fourth quarter was

strong and amounted to NOK 92.4 million. Cash flow from

operating activities for full year 2016 was NOK 146.9

million.

Order intake for the fourth quarter amounted to NOK 570

million and the backlog was NOK 1,402 million at the end of

the quarter. The SEK 180 million option-award on the

contract with The Swedish Transport Administration

(Trafikverket) on the Ludvika - Frövi development was the

biggest contract award during the quarter. It brought the

total project value to SEK 295 million. This makes the

project the largest track contract awarded to the company to

date and affirms NRC Group's strong position as a leading

fully integrated rail infrastructure contractor in Sweden.

NRC Group has successfully executed a number of projects in

2016 by leveraging additional capacity and competencies from

the companies acquired in 2015. While focus mainly has been

on operational integration in 2016, a process to strengthen

brand recognition and market position was initiated in the

fourth quarter.

NRC Group divested its Geo business in UK in November. Total

cash flow from net proceeds from the sale amounted to NOK

34.7 million.

NRC Group successfully raised NOK 210 million in new equity

through a private placement towards high quality investors.

The placement was significantly oversubscribed. NRC Group

has following the placement a cash balance of NOK 418.4

million as of 31 December 2016 and is well positioned to

pursue accretive growth opportunities.

A dividend policy was introduced in the fourth quarter

whereby it is the 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. The Board of Directors will propose a dividend

of NOK 0.80 per share for 2016.

The positive investment outlook for the Nordic railway is

supported by strong macro trends such as population growth,

urbanization and a significant maintenance backlog.

Effective and environmentally friendly transport solutions

for both people and cargo is also high on the political

agenda. With considerable financial strength, NRC Group

remains committed to its strategy to consolidate the market

and deliver organic and acquired growth in coming years.

The fourth quarter 2016 result report and the fourth quarter

2016 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 ASA:

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.