NRC Group — Earnings Release 2022

Feb 21, 2023

21 February 2023

4th quarter 2022

CEO Henning Olsen CFO Ole Gulsvik

KEY FIGURES Q4 22 Strong growth – reduced margins

REVENUE

NOK 2.0 billion

Q4 2021: NOK 1.6 billion

EBITA*

NOK 31 million

Q4 2021: NOK 50 million

EBITA* margin 1.6%

Q4 2021: 3.1%

ORDER INTAKE Q4 2021: NOK 1.9 billion

OPERATING CASH FLOW NOK 1.3 billion NOK 160 million

Q4 2021: NOK 149 million

ORDER BACKLOG Q4 2021: NOK 7.8 billion NOK 7.8 billion

HEALTH AND SAFETY Fewer injuries resulting in absence

LTI¹ 6.0 2021: 6.4 2021: 18.5

SICKNESS ABSENCE

4.2% 2021: 3.9% 2021: 0

TRI² 17.1

SERIOUS INJURIES

2

1) LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors). Previously reported as LTI-1. 2) TRI: Frequency of injuries with and without absence for personnel (employees, rented workers and subcontractors) per million hours worked. Previously reported as LTI-2. Figures per YTD 31 December 2022 compared with YTD 30 December 2021.

Summary and Outlook

Key figures 2022

2022

• Strong growth in revenue
• Slight decrease in EBITA* margin
• Order book same level as 2021

Outlook 2023

• Continued positive operational and financial development
• Slight decrease in revenue
• Moderate increase in EBITA* margin

Net interest-bearing debt

EBITA* & EBITA* Margin

NOK million and percent

Order backlog

NOK million

4

0,0 %

0,5 %

1,0 %

1,5 %

2,0 %

2,5 %

* Before other income and expenses (M&A expenses)

PROFIT & LOSS Improved operational profits in 2022 despite lower Q4

EBITA*

(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Revenue	1 954	1 601	7 030	5 957
Operating expenses	-1 874	-1 504	-6 695	-5 621
Other income and expenses (M&A expenses)	-1	-22	-2	-34
EBITDA	80	75	333	302
Depreciation	-50	-47	-185	-196
EBITA*	31	50	151	139
EBITA	30	29	149	105
Amortisation and impairment	-361	-19	-389	-64
Operating profit/loss (EBIT)	-332	10	-240	42
Net financial items	-15	-16	-58	-66
Share of profit from associates and joint ventures	-6	0	-15	0
Profit/loss before tax (EBT)	-353	-6	-313	-24

Notes

• Revenues +22% from Q4 21
• EBITA* down NOK 19 million compared to Q4 21
• Goodwill impairment NOK -352 million
• Revenues +18% in 2022 vs 2021
• EBITA* 2022 up to NOK 151 million from NOK 139 million in 2021
• EBITA* margin 2.1% in 2022 vs 2.3% last year

*Before other income and expenses (M&A expenses)

KEY FINANCIAL FIGURES LAST TWELVE MONTHS (LTM) Strong growth and improved operational profits in 2022

BALANCE SHEET Solid financial position - equity ratio at 45%

(Amounts in NOK million)	31.12.2022	31.12.2021	Net Interest-bearing debt
ASSETS			NOK million						NOK +59	million
Intangible assets	2 493	2 867
Right-of-use assets	564	514
Total other non-current assets	207	193	1 157		1 178
Cash and cash equivalents	472	626		1 107
Other current assets	1 454	1 387				984			1 009	997
Total assets	5 191	5 587					891	844
EQUITY AND LIABILITIES
Total equity	2 312	2 622
Long-term lease liabilities	353	319
Other non-current interest-bearing liabilities	741	880
Other non-current liabilities	11	26
Short-term lease liabilities	175	173
Other interest-bearing current liabilities	153	146
Other current liabilities	1 445	1 422
Total equity and liabilities	5 191	5 587
			Q4 20	Q1 21	Q2 21	Q3 21	Q4 21	Q1 22	Q2 22	Q3 22
Equity Ratio	45%	47%

NIBD ex leasing Leasing

Net Interest-bearing debt ex. leases: NOK 422 million

7

CASH FLOW Improved cash position

Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22

Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22

* Before other income and expenses (M&A expenses) 1) The Group has a NIBOR hedge which partly offsets the effects of increased market interest rates.

FINANCIAL POSITION Financial flexibility remains good – unchanged leverage ratio

Bank loan Bond

* Before other income and expenses (M&A expenses) 1) The Group has an unused credit facility of NOK 200 million

BACKLOG Solid long-term backlog

FINANCIAL POSITION

Operational review

OPERATIONAL REVIEW NRC GROUP NORWAY Higher activity and improved performance

-14 -17 -42 -38 26 47 ^{63 70} 80 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 EBITA* LTM Order backlog (total) NOK million NOK million

Key Figures Notes

(NOK million)	Q4 2022	Q4 2021
Revenue	635	508
EBITA*	31	21
EBITA* margin	4.9%	4.2%
Order intake	563	495

• Revenue growth in the quarter of 25% driven by Rail construction
• Profitability driven by continued improved results in Environment and Rail construction
• Book-to-Bill at 0.9 in 2022
• Divestment of Gravco

Solid tender pipeline with high number of large projects

pipeline compared to Q3 22 mainly driven by Rail construction, but also by Civil and Environment

Tender pipeline increase of NOK 1.3 billion vs last year, related to Civil and Environment

NOK 25.3 billion in proposed national budget for 2023 to rail related projects in 2023, with NOK 17.5 to investments and NOK 7.8 billion to operations, maintenance and renewals.

OPERATIONAL REVIEW NRC GROUP SWEDEN Reduced operational profits

Key Figures Notes

(NOK million)	Q4 2022	Q4 2021
Revenue	646	398
EBITA*	-30	-21
EBITA* margin	-4.7%	-5.2%
Order intake	499	409

EBITA* LTM Order backlog (total)

• Revenue growth of 69 % in local currency due to volume increase in Rail construction
• Weak results in Civil, partly offset by improved performance in Rail construction and Maintenance
• Book-to-Bill at 1.6 in local currency for 2022

CLOSE-UP ON SWEDEN

Strategic review of Civil construction initiated

15

High tender activity expected to continue

NOK 10.3 billion tender pipeline¹ BNOK value, # of tenders, next 9 months #4 #4 #11 #38 MNOK >300 MNOK 100-300 MNOK 30-100 Rail maintenance 5.9 4.4 Rail and Civil construction

Notes

Reduction of NOK 2.4 billion in tender pipeline vs Q3 22 explained by both Rail construction and Maintenance

Increase of NOK 1.7 billion compared to same period last year from Rail construction and Maintenance, while Civil construction is relatively unchanged

Pipeline for Rail construction is NOK 4.6 billion, pipeline for Civil construction is NOK 1.4 billion

Key Figures Notes

(NOK million)	Q4 2022	Q4 2021
Revenue	677	706
EBITA*	34	59
EBITA* margin	5.0%	8.3%
Order intake	192	968

EBITA* LTM Order backlog (total)

• Lower volumes, good growth in Rail construction
• Profitability remains good, but weaker results in Maintenance and NOK 16 million gain in sale of machinery last year
• 2022 Book-to-Bill of 0.6 in local currency

Growth in tender pipeline

NOK 5.8 billion tender pipeline¹ Notes

Rail and Civil construction

MNOK >300 MNOK 100-300 MNOK 30-100

BNOK value, # of tenders, next 9 months Increase by NOK 4.1 billion in the tender pipeline from Q3 22 and an increase of 4.2 billion compared to Q4 21.

Increase in Rail construction, Maintenance and tendering of Civil projects.

Continued high investment level expected for Light rail projects in the coming years.

National budget for 2023 is 20% lower than 2022.

SUMMARY

2022 and Q4 in brief

Financials

• Strong growth continues with revenue increase of 1 8% in 2022
• EBITA* of NOK 151 million improved by 8% compared to 2021
• Quarterly result down from same period last year
• Order backlog remains high
• Divestment of Gravco in Q1 2023

Operations

• Good profitability in Finland
• Continued improved results in Norway
• Weak results in Sweden

Outlook 2023

• Continued positive operational and financial development
• Slight decrease in revenue
• Moderate increase in EBITA* margin

Q1 2023 results 24 May

DISCLAIMER

This draft presentation (hereinafter referred to as the "Presentation") has been prepared exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.

This Presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on current expectations, estimates and projections. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. We cannot give any assurance as to the correctness of such information and statements.

Several factors could cause the actual results, performance or achievements of the companies mentioned herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the company's business, segment, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumption prove incorrect, actual results may vary materially from those described in this document. We do not intend, and do not assume any obligation, to update or correct the information included in this Presentation.

There may have been changes in matters which affect the companies herein subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the company/companies have not since changed, and we do not intend, and do not assume any obligation, to update or correct any information included in this Presentation.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court AS exclusive venue.