NRC Group — Earnings Release 2022

Feb 21, 2023

Result Report

4th quarter 2022

From the CEO

We delivered strong revenue growth in the fourth quarter with an increase of 22% compared to the same period in 2021. The EBITA* was NOK 31 million, down from NOK 50 million in the same quarter last year. With our strong Nordic market position, an order backlog at high levels amounting to NOK 7.8 billion and an addressable tender pipeline of approximately NOK 26.5 billion for the next nine months, I am confi dent that we are set to deliver continued fi nancial and operational improvements.

The development in NRC Group's operations in Finland and Norway is according to plan. Finland continues to deliver strong results with an EBITA* of NOK 34 million corresponding to an EBITA* margin of 5.0% for the quarter. The positive development in Norway continues with an EBITA* of NOK 31 million, representing an EBITA* margin of 4.9%. In Sweden, we delivered an EBITA* of NOK -30 million, compared with NOK -21 million same period last year, due to losses in Civil construction. We will continue our relentless work to improve the operational improvements that drive profi tability and implement the necessary measures to improve profi tability in Sweden.

Securing four long-term maintenance contracts in Sweden in 2022, provides us with visibility and a solid base to further develop our maintenance business, capture synergies with rail construction and position us for future profi table growth in the Swedish market.

We always aim to pursue a sustainable and profi table growth, both to reduce our footprint and to improve our margins. We have turned our sustainable approach into contract wins and into a competitive edge. In 2022, we won a NOK 400

Henning Olsen, CEO

«With our strong Nordic market position, an order backlog at high levels amounting to NOK 7.8 billion and an addressable tender pipeline of approximately NOK 26.5 billion for the next nine months, I am confident that we are set to deliver continued financial and operational improvements.»

million contract by utilising biogas trucks to remove tons of masses.

I want to thank our employees for their continued efforts to deliver safe and effi cient operations during the quarter. As the impact of COVID-19 pandemic eased in 2022, new challenges emerged. The war in Ukraine affects us all, and while it is outside of our core operating area, it impacts both people and our markets through potential scarcity of certain materials and through infl ation and higher interest rates. Despite the increased uncertainty, we delivered improved performance as one team.

Stay healthy and safe.

Key fi gures

Quarterly fi gures				Year in total
Revenue	Growth YoY	EBITA*	EBITA* margin	Revenue	EBITA*	EBITA* margin
2.0 BNOK Q4 21: 1.6 BNOK	22%	31 MNOK Q4 21: 50 MNOK	1.6% Q4 21: 3.1%	7.0 BNOK 2021: 6.0 BNOK	151 MNOK 2021: 139 MNOK	2.1% 2021: 2.3%
Orders				Operating cash fl ow	Order intake
Order intake	Book-to-bill	Order backlog		235 MNOK	7.0 BNOK
1.3 BNOK	0.6	7.8 BNOK		2021: 358 MNOK	2021: 7.6 BNOK
Q4 21: 1.9 BNOK	Q4 21: 1.2	Q4 21: 7.8 BNOK
Liquidity
Operating cash fl ow	Cash position	Available liquidity		(Amounts in NOK million)		Q4 2022	Q4 2021	FY 2022	FY 2021
160 MNOK	472 MNOK	672 MNOK		Revenue		1 954	1 601	7 030	5 957
Q4 21: 149 MNOK	Q4 21: 626 MNOK	Q4 21: 826 MNOK		EBITDA EBIT**		80 -332	75 10	333 -240	302 42
				EBITA*		31	50	151	139
Health and safety				EBITA* (%)		1,6 %	3,1 %	2,1 %	2,3 %
LTI	Sickness absence			Order intake		1 254	1 872	6 959	7 581
				Order backlog		7 795	7 801	7 795	7 801
6.0	4.2%			Cash fl ow from operating activities		160	149	235	358
Q4 21: 6.4	Q4 21: 3.9%			Cash and cash equivalents		472	626	472	626
				Net interest-bearing debt		950	891	950	891

(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Revenue	1 954	1 601	7 030	5 957
EBITDA	80	75	333	302
EBIT**	-332	10	-240	42
EBITA*	31	50	151	139
EBITA* (%)	1,6 %	3,1 %	2,1 %	2,3 %
Order intake	1 254	1 872	6 959	7 581
Order backlog	7 795	7 801	7 795	7 801
Cash fl ow from operating activities	160	149	235	358
Cash and cash equivalents	472	626	472	626
Net interest-bearing debt	950	891	950	891
Net interest-bearing debt excl. leasing	422	399	422	399
Equity ratio	45 %	47 %	45 %	47 %
Employees	1 960	1 893	1 960	1 893

The fourth quarter revenue was NOK 1,954 million compared to NOK 1,601 million for the same period of 2021. The revenue increased with 22% in the quarter, due to strong growth in Norway and Sweden. Adjusted for currency effects, the growth was 21%.

The Group's operational profi t, measured in EBITA* was NOK 31 million in the fourth quarter, down from NOK 50 million in the same quarter last year. The result included profi t from sale of fi xed assets totalling NOK 1 million, compared to NOK 23 million in the same quarter last year. EBITA* margin ended at 1.6% compared to 3.1% in the same quarter last year. The cash fl ow from operations was NOK 160 million compared to NOK 149 million in the same quarter last year.

Revenue for 2022 was NOK 7,030 million, an increase of 18% from same period last year, mainly explained by strong growth in Norway and Sweden. EBITA* amounted to NOK 151 million compared with NOK 139 million in 2021. The EBITA* included profi t from sale of fi xed assets totalling NOK 32 million in 2022, compared to NOK 75 million in 2021. The EBITA* margin was 2.1% in 2022, compared to 2.3% in 2021. The cash fl ow from operations in 2022 was NOK 235 million, down from NOK 358 million in 2021.

Finland had a revenue of NOK 677 million compared to NOK 706 million in the fourth quarter last year. Adjusted for currency effects the organic growth was -8%, driven by reduced volumes in Light Rail and Maintenance, and partly offset by higher volumes in Rail

Strong growth with reduced margins

Comments to the quarter:

Group Revenue LTM

Group EBITA* LTM

6 7

construction. The EBITA* was NOK 34 million compared to NOK 59 million in the same period of 2021, leading to an EBITA* margin of 5.0% for the quarter, down from 8.3% last year. The reduction is mainly related to net gain from sale of machinery at NOK 16 million in the fourth quarter of 2021 compared to NOK 0 million in this quarter. Good profi tability in Rail construction and Light rail, was partly offset by weak results in Maintenance.

Revenue from the Swedish operation amounted to NOK 646 million for the quarter compared to NOK 398 million in the same period of 2021. Adjusted for currency, the organic growth in the quarter was 69%, with strong growth in Rail construction. The EBITA* for the quarter was NOK -30 million compared to -21 million for the same quarter last year. Improved results in Rail construction and Maintenance were offset by weak results in Civil construction.

Revenue in Norway was NOK 635 million compared to NOK 508 million in the fourth quarter of 2021. The organic growth was 25% in the quarter, driven by improvements within Rail construction and partly offset by lower volumes in Civil construction. EBITA* was NOK 31 million compared to NOK 21 million in the same period of 2021, which resulted in an EBITA* margin of 4.9% in the quarter, up from 4.2% for the same quarter last year. Profi tability was driven by strong results from Environment and improved results in Rail construction.

Amortisation and impairment for the fourth quarter totalled NOK -361 million, compared to NOK -19 million for the same period last year. This included goodwill impairment charges of NOK -352 million in the fourth quarter, related to the Swedish business.

The Group's operating profi t (EBIT) for the fourth quarter was NOK -332 million, a reduction from NOK 10 million last year. The EBIT for 2022 was NOK -240 million compared to NOK 42 million last year.

Net fi nancial items amounted to NOK -15 million for the quarter, compared to NOK -16 million for the same period last year. This included a reduction in net interest expenses from NOK 16 million to NOK 14 million due to debt instalments in the period. The Group has a NIBOR hedge linked to the outstanding bond, which partly offsets increased market interest rates. The

share of profi t from associated companies totalled a loss of NOK 6 million for the fourth quarter 2022, compared to NOK 0 million in the same period last year. Net fi nancial items in 2022 was NOK -58 million compared to NOK -66 million in 2021.

Earnings before tax (EBT) for the fourth quarter was NOK -353 million compared to NOK -6 million last year. In 2022, EBT was NOK -313 million compared to NOK -24 million last year.

Net profi t was NOK -393 million in the quarter compared to NOK -9 million last year, with earnings per share (EPS) of NOK -5.40 compared to NOK -0.12 same period last year. In 2022, the net profi t was NOK -364 million compared to NOK -27 million last year, with EPS of NOK -4.99 compared to NOK -0.38 last year.

Norway EBITA* LTM

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

NOK million

Sweden EBITA* LTM

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

Finland EBITA* LTM

The order intake in the fourth quarter was NOK 1,254 million, with a split between announced contracts of NOK 223 million and unannounced contracts of NOK 1,031 million. The book-to-bill ratio was 0.6 in the quarter and 1.0 in 2022.

The order backlog amounted to NOK 7,795 million at the end of December, a decrease of NOK 814 million from last quarter, including a negative currency adjustment of NOK -114 million. The order backlog for production in 2023 amounted to NOK 3,740 million at the end of December, compared to NOK 4,101 million for 2022 at the end of fourth quarter 2021.

NRC Group Sweden was appointed by The Swedish Transport Administration to a contract for catenary works on the railway connection between Kville and Uddevalla. The contract

is valued at approximately SEK 134 million and will involve rail services such as electro and groundwork. The work will commence in January 2023 and is scheduled for completion in April 2024.

The Swedish Transport Administration decided in the fourth quarter to exercise the contract option for the maintenance contract between Hallsberg and Laxå, and Hallsberg Railway yard. The contract option is valued at approximately SEK 101 million, and will involve rail services such as track, signal and electro. The contract option will commence in September 2024 and is scheduled for completion in August 2026.

The Group has identifi ed an addressable tender pipeline of approximately NOK 26.5 billion for the next nine months. This compares to a NOK

21.3 billion tender pipeline three months ago and NOK 19.0 billion at the same time in 2021.

The tender pipeline in Finland is approximately NOK 5.8 billion, an increase of approximately NOK 4.1 billion compared to the tender pipeline three months ago and the tender pipeline is approximately NOK 4.2 billion higher than in the same period last year due to more tenders in all divisions.

The tender pipeline in Norway is approximately NOK 10.2 billion, an increase of NOK 3.2 billion compared to the tender pipeline three months ago. The increase is mainly explained by increased number of tenders in the market for Rail construction, and to some extent also for Civil construction and Environment service. The tender pipeline has increased by approximately NOK 1.3 billion compared with the same time last year. The increase is mainly related to Civil construction and Environment services.

In Sweden, the tender pipeline is approximately NOK 10.6 billion, with NOK 4.6 billion for Rail construction, NOK 3.2 billion for Civil Construction and NOK 2.9 billion for Maintenance. The tender pipeline decreased by NOK 2.1 billion compared to three months ago. The decrease is explained by a reduction in both Rail construction and Maintenance. The tender pipeline is NOK 2.0 billion above the same period last year, which is mainly related to increased level of tenders in Civil construction while Rail construction and Maintenance is unchanged.

Order backlog

IMPACTS OF THE GLOBAL ECONOMY

The war in Ukraine, the energy crisis in Europe and high inflation has led to volatility in the financial market and uncertainty in the global economic outlook. Due to the situation, the outlook is more uncertain both related to material prices, supply chain risks, and government spending on infrastructure. NRC Group is actively managing the development and uncertainty. In 2023, NRC Group expects high investments in rail based on proposals in national budgets and national transportation plans in Norway, Sweden and Finland.

The market for rail investments is at a historical high level, driven by urbanisation, population growth and the shift towards sustainable infrastructure. On long term, NRC Group expects these global mega-trends will lead to continued growth in the market.

The Group has analysed the direct earnings sensitivity from increasing material and fuel prices. The findings conclude that NRC Group's business model yields good protection against increasing material prices. In addition to frequently used index regulations, the customer predominantly takes the risk on sector specific materials within rail infrastructure. The Group considers the Civil business to be more exposed than Rail related businesses. However, the impact for NRC Group has so far been limited. The Group monitors the development, including both direct and indirect effects, and is actively evaluating opportunities to limit risk in the project portfolio.

NRC Group has limited direct supplies from Ukraine, and alternative sources have been identified.

OUTLOOK

NRC Group is strongly positioned in a growing market with a substantial tender pipeline. In 2023, NRC Group expects investments in rail to be at same level as in 2022, based on proposals in national budgets and national transportation plans in Norway, Sweden and Finland.

Uncertainty in the world economy has had limited impact on NRC Group per date. The uncertain situation has led to an evaluation of the public investments in infrastructure going forward in the Nordics and can impact rail funding in certain projects.

NRC Group continues its focus on measures to improve profitability. For 2023, we expect continued positive operational and financial development with a slight decrease in revenue and moderate increase in EBITA* margins.

DIVIDEND

NRC Group expects to create value for its shareholders by combining increased share value in a long-term perspective and distribution of dividends. The company aims to have a dividend policy comparable with peer Groups in the industry and to give its shareholders a competitive return on invested capital relative to the underlying risks. The Board of Directors at NRC Group has approved a dividend policy whereby, subject to a satisfactory underlying financial performance, it is NRC Group's

ambition over time to distribute dividend as a minimum of 30% of the profit for the year. The target level will be subject to adjustment depending on possible other uses of funds. The Annual General Meeting (AGM) resolves the annual dividend, based on the proposal by the Board of Directors. Based on the 2022 results, the Board of Directors will not propose a dividend for 2022.

CASH FLOW

Net cash flow from operating activities for the fourth quarter of 2022 was NOK 160 million, above the reported EBITDA of NOK 80 million due to reduction in net working capital. The comparable operating cash flow last year was NOK 149 million. For 2022, the cash flow from operation was NOK 235 million, down from NOK 358 million in 2021.

Net cash flow from investing activities in the fourth quarter was NOK -9 million compared to NOK 5 million in the same period last year. This included investments in associates of NOK -6 million in addition to proceeds from sale of fixed assets of NOK 9 million, compared to NOK 29 million in proceeds from sales of fixed assets in the same period in 2021.

The net cash flows from financing activities amounted to NOK -93 million for the quarter compared to NOK -91 million last year. The cash flows mainly include ordinary instalments and interests for loans and lease liabilities (financial and operating). The Group has a NIBOR hedge linked to the outstanding bond, which partly offsets increased market interest rates. See

further details in the Risks section.

The fourth quarter net change in cash was NOK 58 million compared to NOK 63 million last year. Cash at the end of the period amounted to NOK 472 million. The Group has an unused credit facility of NOK 200 million.

FINANCIAL POSITION

NOK strengthened towards SEK and EUR during the fourth quarter of 2022 leading to a net negative translation difference recognised in other comprehensive income of NOK 25 million, compared to a negative adjustment of NOK 37 million last year.

Intangible assets reduced by NOK 414 million to NOK 2,493 million during the quarter mainly due to goodwill impairment charges of NOK -352 million related to the Swedish business. In addition, a net tax expense of 36 million was recognised due to an increase in nonrecognised tax assets related to Sweden.

Tangible and right-of-use assets increased with NOK 50 million during the quarter as new leased investments exceeded depreciations.

Total receivables reduced by NOK 332 million to NOK 1,425 million during the quarter due to increased receivable collection in the period.

Total assets at NOK 5,191 million reduced by NOK 648 million in the quarter. The equity ratio was 45 % on 31 December 2022.

Interest-bearing liabilities consist of a EUR

28.2 million bank loan, a NOK 600 million bond, and discounted cash fl ows related to lease agreements, including operating leases under IFRS 16. Total interest-bearing liabilities amounted to NOK 1,423 million at the end of December, including operating lease liabilities of NOK 217 million. The repayment of the EUR bank loan amounted to NOK 38 million in the quarter. Total lease liability increased by NOK 52 million to NOK 528 million as the discounted value of new lease agreements was higher than the lease payments and terminated agreements.

Net interest-bearing debt decreased by NOK 47 million during the quarter to NOK 950 million mainly due to the positive operating cash fl ow and partly offset by increased leasing liabilities. The reduction of net interest-bearing debt due to currency amounted to NOK 4 million.

Net interest-bearing debt excluding lease liabilities decreased by NOK 99 million during the quarter to NOK 422 million.

RISKS

NRC Group is exposed to operational, fi nancial and market risks. Operational risks include risk assessment and contingency appraisal in project tendering, project execution, signifi cant market adjustments in cost of goods, materials or services, claims and legal proceedings. In addition, it includes resource optimisation following fl uctuations in seasonal demand in the business and ability to implement strategies, as well as macroeconomic conditions such as political changes including changes in government spending, demand or priorities.

NRC Group aims to undertake operational risk that the business units can infl uence and control. NRC Group has developed risk management processes that are well adapted to the business. This includes analysis of project risk from the tendering phase through to completion to ensure appropriate pricing and risk management. NRC Group also seeks to minimise the exposure to risk that cannot be managed.

Financial risks include fi nancial market risk, credit risk and liquidity risk. Financial market risks most relevant for the Group are currency risk and interest rate risk. A Group risk management policy for hedging is implemented to manage this risk. By having operational units in different functional currencies, NRC Group is exposed to currency translation risks related to subsidiaries in Sweden (SEK) and Finland (EUR). The Group has an EUR currency loan to hedge the net investment in Finland. Most transactions in the Group are in local functional currencies. Signifi cant transactions in other than functional currencies are assessed, and hedging instruments are considered to limit the risks associated with foreign exchange. The bond issued in September 2019 carries an interest of three months NIBOR + 4% until maturity on 13 September 2024. The three months NIBOR has been hedged to a fi xed rate of 1.838% for the full period. The fair market value of the hedge at the end of the quarter was NOK +15 million, impacting other comprehensive income.

Liquidity risk is the risk that the Group will be unable to meet its fi nancial obligations when they are due. The Group had total current assets of NOK 1,927 million at the end of the quarter, NOK 153 million higher than the short-term liabilities. Total unrestricted cash amounted to NOK 472 million in addition to an unused multi-currency credit facility of NOK 200 million. The central management team and the local managers of the subsidiaries monitor the Group's liquid resources and credit facilities through revolving forecast based on expected cash fl ow. The cash fl ow is impacted by seasonal fl uctuations. The current cash position and the multi-currency cash pool provide appropriate fl exibility for managing cash fl ows and reserves within the Group.

Work in progress and trade receivables are set out contractually, which means that the amount of capital committed is determined by the credit

terms of the contracts. NRC Group's liquidity reserves will normally be at its lowest in the spring and summer due to the seasonality in the business.

NRC Group's customers are to a large degree municipalities or government agencies, or companies or institutions where municipalities or government agencies have a dominant infl uence. NRC Group considers the risk of potential future bad debt losses from this type of customer to be low.

The direct impact of global events such as the Covid-19 outbreaks and the war in Ukraine, has been limited for the Group. The volatile global market may however impact on risks related to material prices, supply chain and government spending on infrastructure. NRC Group is actively managing the development and uncertainty.

The increasing demand to build and maintain high-quality infrastructure in the Nordics, together with the opportunities that lie in urbanisation and climate positive city development, promise an exciting outlook for NRC Group. Supporting our mission of creating infrastructure that goes beyond the demands of today and tomorrow, we pursue a strategy of sustainable growth, promoting climate-friendly solutions, and proactively work to become a zero-emission industry.

The EU Taxonomy is the EU's classifi cation system for sustainable economic activities, developed to create a unifi ed defi nition of sustainable activity. The intention is to scale up sustainable investments with a net positive climate and/or environmental impact. For an activity to be considered sustainable according to the Taxonomy, it must contribute substantially to at least one of six environmental objectives, defi ned by technical screening criteria. NRC Group has considered the environmental objective related to climate change mitigation. In addition, the activity must "do no signifi cant harm" (DNSH) towards the remaining fi ve objectives and comply with minimum social safeguards (UN Guiding Principles including ILO core conventions and OECD guidelines). One highly important DNSH criteria for NRC Group is to meet the minimum 70% recycling rate for business activities.

The EU Taxonomy is fi rst and foremost a list of criteria that must be met, for an activity to be considered sustainable. The Taxonomy framework is proposed to be incorporated into

Norwegian law via the European Economic Area (EEA) Agreement through a new sustainable fi nance law. It is expected that the Taxonomy reporting requirements will be incorporated into Norwegian law in 2024 (covering the 2023 annual fi nancial reporting period). NRC Group voluntarily already reported the following disclosures:

• The share of Taxonomy-eligible economic activities in relation to total activities
• The Key Performance Indicators (KPIs) as defi ned in the Taxonomy related to turnover (revenue), operational expenses (OpEx) and investments (CapEx)
• Qualitative information

ALIGNED ACTIVITIES FOR NRC GROUP ACTIVITIES

NRC Group reports on eligible and aligned activities on a half-year basis. 87% of the Group's activities in 2022, in terms of revenue, is defi ned as eligible and 67% as aligned under the EU Taxonomy. More information will follow in the Sustainability Report 2022 and the

Sustainable Finance and the EU Taxonomy

Building a sustainable company

A chain of commitments:

	Eligible	Aligned
KPIS
Turnover (Revenue)	87 %	67 %
Operational expenses (OpEx)	87 %	67 %
Investments (CapEx)	81 %	73 %

Taxonomy KPIs

Annual Report 2022. The most relevant eligible activities for NRC Group include infrastructure for rail transport and infrastructure enabling low-carbon road transport and public transport. Activities performed by the Group that are currently not defi ned as eligible, include parts of both the environmental and the civil construction business. Most of the eligible

activities meet the technical screening criteria, they do no signifi cant harm criteria and meet other requirements to be classifi ed as sustainability aligned.

Based on the Group's review of economic activities for 2022, the following KPIs have been consolidated:

Martine Jonsson,

Project Lead, NRC Group Norway

NOTABLE PROJECTS:

In fourth quarter, NRC Group Norway completed a project at Skøyen where many measures were taken on climate and sustainable topics. The project was a part of the Fornebu Metro Line – one of the largest ongoing national and regional investment projects in Norway. It will facilitate sustainable urban development and ensure effi cient and environmentally friendly transport when completed.

How we build our projects matters to us. We have built a 300-meter-long tunnel underground. By using trucks that run on biofuel from our subsidiary Gunnar Knutsen, to remove approximately 75 000 tons of blasted rocks from the tunnel.

How we build our projects matters to us

Sustainability approach

The sustainability strategy of NRC Group sets out how NRC Group operates to achieve our sustainability goals. The strategy is focused on six core impact areas. The sustainability strategy is brought to life through its adoption in our operations and the way we work every day. We are actively building our sustainability competence as we develop our unique internal sustainability culture. We set clear targets and aim to empower our customers and partners to reach theirs.

BUILDING THE LOW-CARBON FUTURE

NRC Group is highly aware of our customer and stakeholder expectations on climate impacts, and of the likelihood of climate-related regulation. That is why, as a provider of services to build sustainable transport solutions, NRC Group is positioning itself to be the sustainable infrastructure partner of choice. Shifting our business to a low-carbon operation is a key priority.

30% reduction target

We have set a 30% reduction target for our GHG emissions within 2025. We are committed to align our reduction efforts with the Paris agreement and have set the long-term goal of being net zero by 2050. We are continuing to investigate the setting of a science-based

target (SBTi), including identifying and reporting a useful intensity factor which measures the carbon intensity of our operations on a relevant basis. The GHG emissions for 2022 will be announced in the Sustainability Report 2022.

A SAFE AND SECURE WORKPLACE FOR ALL OUR EMPLOYEES

We are committed to providing a safe and secure workplace for all our employees, subcontractors and partners. Our goal is that all employees, sub-contractors and partners shall return home every day completely free of injuries. Safety is embedded in everything we do, and our approach is formally set out in NRC Group's policy for health, working environment and safety. The safety and health of our employees are of utmost importance.

The LTI frequency was 6.0 per 31 December 2022, down from 6.4 at the same time last year. The sickness absence rate increased to 4.2% from 3.9% at the same time last year. TRI was 17.1 per 31 December, a decrease compared to 18.5 from last year.

How NRC Group operates

Continuous training of our employees

Sustainable approach in our construction work

A strong health and safety culture in NRC Group is key. Deep knowledge and awareness of our safety routines is crucial when executing our projects. We want everyone to get home from work free of injuries, every day.

Recently we conducted mandatory training for all leaders in NRC Group Sweden. The continuous training is important to build a safe working environment for all our employees. By systematically providing relevant training, we ensure a solid focus on the safety of all our employees.

The Oslo Municipality appointed NRC Group Norway to a contract for construction work in connection with the establishment of a water reservoir at Holmenkollen. The environmental requirements from the Municipality were well aligned with our sustainable approach in many projects.

In this project the client asked us to utilise low carbon concrete, electrical waste transport, compressors and heaters. We also installed solar panels on the roof of our rig, and utilised biogas trucks from Gunnar Knutsen to remove masses from the site. It is rewarding to see how we execute projects that matters both to the client and to the society around us.

Kristoffer Breistøl, HSEQ Engineer NRC Group Norway

Zarah Cronström, Head of HSEQ NRC Group Sweden

Interim condensed consolidated statement of profi t or loss

Revenue 1 954 1 601 7 030 5 957 Operating expenses -1 874 -1 504 -6 695 -5 621 Depreciation -50 -47 -185 -196 EBITA before other income and expenses 31 50 151 139 Other income and expenses -1 -22 -2 -34 Amortisation and impairment -361 -19 -389 -64 Operating profi t/loss (EBIT) -332 10 -240 42 Net fi nancial items -15 -16 -58 -66 Share of profi t from associates and joint ventures -6 0 -15 0 Profi t/loss before tax (EBT) -353 -6 -313 -24 Taxes -41 -3 -51 -3 Net profi t/loss -393 -9 -364 -27

(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
Depreciation	-50	-47	-185	-196
EBITA before other income and expenses	31	50	151	139
Other income and expenses	-1	-22	-2	-34
Amortisation and impairment	-361	-19	-389	-64
Operating profi t/loss (EBIT)	-332	10	-240	42
Net fi nancial items	-15	-16	-58	-66
Share of profi t from associates and joint ventures	-6	0	-15	0
Profi t/loss before tax (EBT)	-353	-6	-313	-24
Taxes	-41	-3	-51	-3
Net profi t/loss	-393	-9	-364	-27
Profi t/loss attributable to:
Shareholders of the parent	-393	-9	-363	-26
Non-controlling interests	0	0	-1	-1
Net profi t / loss	-393	-9	-364	-27
Earnings per share in NOK (ordinary)	-5,40	-0,12	-4,99	-0,38
Earnings per share in NOK (diluted)	-5,40	-0,12	-4,99	-0,38

Interim condensed consolidated fi nancial statement

Results:

(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Net profit / loss	-393	-9	-364	-27
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax):
Translation differences	-25	-37	36	-97
Net gain on hedging instruments	-3	3	15	17
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods (net of tax):
Net actuarial gain/loss on pension expense	5	-4	5	-4
Total comprehensive profit/loss	-416	-47	-308	-112
Total comprehensive profit/loss attributable to:
Shareholders of the parent	-416	-47	-307	-111
Non-controlling interests	0	0	-1	-1
Total comprehensive profit/loss	-416	-47	-308	-112

(Amounts in NOK million)	31.12.2022 31.12.2021
ASSETS
Deferred tax assets	98	137
Goodwill	2 364	2 666
Customer contracts and other intangible assets	32	63
Intangible assets	2 493	2 867
Tangible assets Right-of-use assets	184 564	184 514
Other non-current assets	23	9
Total non-current assets	3 265	3 574
Total inventories	29	28
Total receivables	1 425	1 359
Cash and cash equivalents	472	626
Total current assets	1 927	2 013
Total assets	5 191	5 587
(Amounts in NOK million)
EQUITY AND LIABILITIES
Equity
Paid-in-capital	2 396	2 398
Other equity	-85	222
Total equity attributable to owners of the parent	2 310	2 619
Non-controlling interests	2	2
Total equity	2 312	2 622
Liabilities
Pension obligations	11	16
Long-term leasing liabilities Other non-current interest-bearing liabilities	353 741	319 880
Deferred taxes	1	2
Other non-current liabilities	0	8
Total non-current liabilities	1 106	1 225
Short-term leasing liabilities	175	173
Other interest-bearing current liabilities	153	146
Other current liabilities	1 445	1 422
Total current liabilities	1 773	1 741
Total equity and liabilities	5 191	5 587

(Amounts in NOK million)	31.12.2022 31.12.2021
ASSETS Deferred tax assets	98	137
Goodwill	2 364	2 666
Customer contracts and other intangible assets	32	63
Intangible assets	2 493	2 867
Tangible assets	184	184
Right-of-use assets	564	514
Other non-current assets	23	9
Total non-current assets	3 265	3 574
Total inventories	29	28
Total receivables	1 425	1 359
Cash and cash equivalents	472	626
Total current assets	1 927	2 013
Total assets	5 191	5 587
(Amounts in NOK million) EQUITY AND LIABILITIES
Equity
Paid-in-capital	2 396	2 398
Other equity	-85	222
Total equity attributable to owners of the parent	2 310	2 619
Non-controlling interests	2	2
Total equity	2 312	2 622
Liabilities
Pension obligations	11	16
Long-term leasing liabilities	353	319
Other non-current interest-bearing liabilities	741	880
Deferred taxes	1	2
Other non-current liabilities	0	8
Total non-current liabilities	1 106	1 225
Short-term leasing liabilities	175	173
Other interest-bearing current liabilities	153	146
Other current liabilities	1 445	1 422
Total current liabilities	1 773	1 741
Total equity and liabilities	5 191	5 587

Interim condensed consolidated statement of comprehensive income

Interim condensed consolidated statement of financial position

Interim condensed consolidated statement of cash flows

(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Profit/loss before tax	-353	-6	-313	-24
Depreciation, amortisation and impairment	411	66	574	260
Taxes paid	26	-6	-13	-30
Net interest expenses	14	16	57	67
Gain from sale of property, plant and equipment	-1	-23	-32	-75
Share of profit from associates and joint ventures	6	0	15	0
Change in working capital and other accruals	57	101	-51	161
Net cash flow from operating activities	160	149	235	358
Purchase of property, plant and equipment	-12	-3	-47	-25
Acquisition of companies, net of cash acquired	0	-21	-24	-47
Investments in associates and joint ventures	-6	0	-14	0
Net proceeds from sale of property, plant and equipment	9	29	55	90
Proceeds from sale of shares and other investments	0	1	0	16
Net cash flow from investing activities	-9	5	-29	34
Repayments of borrowings	-38	-36	-147	-147
Payments of lease liabilities	-46	-42	-171	-168
Interest paid	-10	-14	-46	-62
Net proceeds from acquisition/sale of treasury shares	1	1	-3	0
Net cash flow from financing activities	-93	-91	-366	-377
Net change in cash and cash equivalents	58	63	-160	14
Cash and cash equivalents at the start of the period	412	565	626	610
Translation differences	2	-1	6	2
Cash and cash equivalents at the end of the period	472	626	472	626
Hereof presented as:
Free cash	472	626	472	626
Restricted cash	0	0	0	0

Interim condensed consolidated statement of changes in equity

(Amounts in NOK million)	Share capital	Treasury shares	Other paid-in capital	Hedge reserve	Translation differences	Retained earnings	Total	Non controlling interests	Total equity
Equity at 1 January 2021	73	0	2 322	-20	109	243	2 727	4	2 731
Profit/loss for the period						-26	-26	-1	-27
Other comprehensive income				17	-97	-4	-84		-84
Employee share program			5				5		5
Share-based payments			2				2		2
Acquisition of treasury shares		0	-4				-4		-4
Total changes in equity	0	0	3	17	-97	-30	-108	-1	-109
Equity at 31 December 2021	73	0	2 325	-3	12	213	2 619	2	2 622
Equity at 1 January 2022	73	0	2 325	-3	12	213	2 619	2	2 622
Profit/loss for the period						-363	-363	-1	-364
Other comprehensive income				15	36	5	56		56
Employee share program			5				5		5
Share-based payments			0				0		0
Acquisition of treasury shares		0	-7				-7		-7
Total changes in equity	0	0	-2	15	36	-358	-309	-1	-310
Equity at 31 December 2022	73	0	2 323	12	48	-145	2 310	2	2 312

GENERAL INFORMATION

The legal and commercial name of the company is NRC Group ASA.

The company is a public limited liability company incorporated in Norway under the Norwegian Public Limited Liability Companies Act with registration number 910 686 909. The company address is Lysaker Torg 25, 1366 Lysaker, Norway.

NRC Group is listed at Oslo Stock exchange under the ticker "NRC" and with ISIN NO0003679102.

ACCOUNTING POLICIES AND BASIS FOR PREPARATION

The condensed consolidated fi nancial statements as per 31 December 2022 are prepared in accordance with IFRS as approved by the EU and comprise NRC Group ASA and its subsidiaries. The interim fi nancial report is presented in accordance with IAS 34, Interim Financial Reporting. The accounting principles applied in the interim report are the same as those described in the consolidated accounts for 2021.

The interim accounts do not contain all the information that is required in complete annual accounts, and they should be read in connection with the consolidated accounts for 2021. The report has not been audited.

The selected historical consolidated fi nancial information set forth in this section has been derived from the company's consolidated,

unaudited interim fourth quarter fi nancial report for 2021, and the audited fi nancial report for the full year of 2021.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

The preparation of fi nancial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures including the disclosure of contingent liabilities. Estimates and assumptions are evaluated continuously and are based on historical experience and other factors, including expectations of future events that are regarded as probable under the current circumstances. Uncertainty about estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods.

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Group's business mainly consists of execution of projects. The complexity and scope of the projects mean that the projects have an inherent risk that the results may differ from expected results. The Group recognises revenue over time using the input method, e.g. contract costs incurred, resources consumed, or hours spent in relation to the total expected input to fulfi l the performance obligation. For projects in progress, the uncertainty is mainly linked to the estimate of total expenses, the estimate of any variable proceeds, the value of any project modifi cations being recognised and the impact of any disputes or contractual disagreements.

Notes to the interim condensed consolidated fi nancial statement

GOODWILL AND OTHER INTANGIBLE ASSETS

The Group performs annual tests to assess the impairment of goodwill, or more frequently if there is an indication of impairment. In the impairment test the carrying amount is measured against the recoverable amount of the cash generating unit to which the asset is allocated. The recoverable amount of cash generating units is determined by calculating its value in use. These calculations require the use of assumptions and estimates related to future cash flows and the discount rate. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model as well as the expected future net cash inflows and the growth rate used for extrapolation purposes.

In the fourth quarter in 2022, an impairment charge of SEK 370 million has been made to the Sweden segment following the negative Q4 results mainly caused by losses in the Civil construction division. Remaining goodwill related to the Swedish operations per 31 December 2022 is SEK 270 million. Restoring profitability in Sweden is the main priority for the Group. The Swedish Rail construction division improved during 2022, with strong growth in revenue and a positive EBITA* for the year. The results in Maintenance have

also improved, contributing to positive EBITA* results, and winning 4 maintenance contracts provides a solid outlook for this business. As a consequence of the losses in Civil construction, we will do a strategic review of the Civil operations and implement necessary actions to secure profitability in Sweden.

The pre-tax discount rate applied in Sweden is 8.8%, and the assumption for terminal growth 1.7%. Small negative changes to the assumptions in the impairment model would lead to further impairment charges. An increase in the discount rate of 1.0% would lead to further impairment of SEK 85 million, while a terminal growth of zero would lead to an impairment of SEK 56 million. A decrease in the EBITA margin of 0.5 percentage points in the terminal year would lead to an additional impairment loss of SEK 100 million.

PURCHASE PRICE ALLOCATION AND ACCOUNTING FOR CONTINGENT CONSIDERATION IN BUSINESS COMBINATIONS

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured at the fair value of the assets that are contributed as consideration

for the acquisition, equity instruments that are issued and liabilities that are assumed. Identifiable acquired assets, liabilities and contingent liabilities that are assumed to be inherent in a business combination are assessed at their fair value. Estimating the fair value of acquired assets, liabilities and contingent liabilities requires the determination of all facts and information available and how this will impact on the calculations. These calculations require the use of assumptions and estimates related to future cash flows and discount rate.

Contingent considerations will be recognised at fair value at the acquisition date. The contingent consideration can include facts and circumstances not available at the balance sheet date or assumptions related to future events such as meeting earning targets. Estimating the fair value of contingent consideration require determination of all facts and information available and how this will impact on the calculations. The key assumption is to consider the most likely outcome based on the current state of the target.

RECOGNITION OF DEFERRED TAX ASSETS

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that deferred tax liability or taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies. The Group has total tax losses carried forward in Norway of NOK 443 million and in Sweden of NOK 708 million corresponding to gross deferred tax assets of NOK 97 million in Norway and NOK 146 million in Sweden that can be used to reduce future tax payments. In Norway there are no non-recognized deferred tax assets related to unused tax losses. In Sweden, a net tax expense of 36 million was recognised in Q4 due to net increase in non-recognised deferred tax assets. As of 31 December 2022, total non-recognised deferred tax assets related to unused tax losses in Sweden amounted to NOK 122 million. Net of deferred tax liabilities and non-recognised assets, deferred tax assets of NOK 79 million in Norway and NOK 18 million in Sweden have been recognised as it is assumed probable that they can be utilised against future taxable profit based on forecasts and projections.

(Amounts in NOK million)	Norway	Sweden	Finland		Other Consolidated
Q4 2022
External	729	549	677	0	1 954
Inter-segment	-94	97	0	-3	0
Total revenue	635	646	677	-3	1 954
Operating expenses	-576	-666	-631	0	-1 874
Depreciation	-28	-10	-12	0	-50
EBITA*	31	-30	34	-3	31
Other income and expenses	0	0	0	-1	-1
Amortisation and impairment	0	-353	-9	0	-361
EBIT	31	-383	25	-4	-332
Order backlog	2 013	3 160	2 622		7 795

Q4 2021	Norway	Sweden	Finland		Other Consolidated
External	513	383	706	0	1 601
Inter-segment	-5	15	0	-10	0
Total revenue	508	398	706	-10	1 601
Operating expenses	-465	-407	-633	0	-1 504
Depreciation	-22	-12	-13	0	-47
EBITA*	21	-21	59	-9	50
Other income and expenses	0	-8	-13	-1	-22
Amortisation and impairment	0	-1	-18	0	-19
EBIT	21	-30	29	-10	10
Order backlog	2 214	2 008	3 579		7 801

(Amounts in NOK million)	Norway	Sweden	Finland		Other Consolidated
FY 2022
External	2 571	1 877	2 582	0	7 030
Inter-segment	-198	203	0	-5	0
Total revenue	2 373	2 080	2 582	-5	7 030
Operating expenses	-2 200	-2 088	-2 378	-29	-6 695
Depreciation	-93	-42	-48	-1	-185
EBITA*	80	-49	155	-35	151
Other income and expenses	0	0	-1	-1	-2
Amortisation and impairment	0	-355	-34	0	-389
EBIT	80	-404	120	-36	-240

FY 2021	Norway	Sweden	Finland		Other Consolidated
External	1 864	1 453	2 640	0	5 957
Inter-segment	-5	15	0	-10	0
Total revenue	1 859	1 468	2 640	-10	5 957
Operating expenses	-1 739	-1 486	-2 375	-22	-5 621
Depreciation	-93	-50	-52	-1	-196
EBITA*	27	-67	213	-32	139
Other income and expenses	-10	-18	-5	-1	-34
Amortisation and impairment	-11	-3	-49	-1	-64
EBIT	6	-89	159	-35	42

Segments

Notes to the interim condensed consolidated fi nancial statement Notes to the interim condensed consolidated fi nancial statement

INTERESTS IN ASSOCIATED COMPANIES

The Group has a 20% interest sharing risks and rewards of two larger projects (E04 Station Haga, and E03 Kvarnberget) with Webuild (40%) and Gülermak (40%) in connection with Station Haga in Gothenburg, through the associated company AGN Haga AB. The projects commenced during 2018/2019 and were previously scheduled to be completed by 2026. The projects are complex with substantial risk, which has increased. The Group is represented in the board of the company but is not operationally involved in any of the projects.

In Q1 2023, AGN Haga AB received a termination notice from Trafi kverket in relation to E04 Station Haga. The contract in relation to Kvarnberget (E03) is not part of the termination notice.

In Q4 2022, NRC Group made a capital contribution of SEK 6 million to AGN Haga AB, representing NRC Group's pro-rata share of the total capital contribution, to support working capital in AGN Haga AB. Due to substantial uncertainty in the projects, net income from AGN Haga AB has not been recognised in NRC Group accounts, and all capital contributions of SEK 15.5 million have been impaired. The book value of AGN Haga AB in the Group's Q4 2022 accounts is NOK 0 million.

Note 28 to the Group accounts in the annual report for 2021 provides further disclosures regarding the associated company.

TRANSACTIONS BETWEEN RELATED PARTIES

NRC Group ASA had no signifi cant related party transactions other than ordinary cause of business in the fourth quarter of 2022. Note 29 to the Group accounts in the annual report for 2021 provides further disclosures on the size and types of related party transactions during the previous years.

NRC Group ASA has had agreements with Board members for consultancy services related to certain internal projects, investments, management recruitment and other. The agreements are based on hourly rates and are carried out on arm's length terms. Currently, there exists one agreement with Mats Williamson. Total fees year to date amount to SEK 0.2 million.

The table presented below provides an overview of the Stock Exchange announced contracts above NOK 30 million during fourth quarter 2022.

CLIENT

(Amounts in NOK million)	Estimated value	Country
CLIENT
The Swedish Transport Administration	126	Sweden
The Swedish Transport Administration	97	Sweden
Total	223

Contract announcements

Notes to the interim condensed consolidated fi nancial statement Notes to the interim condensed consolidated fi nancial statement

EVENTS AFTER THE END OF THE PERIOD

The Tampere Tramway Oy appointed NRC Group Finland to a contract for maintenance work on the Tampere Tramway. The project is implemented in an alliance model and the contract period is 2023-2030. The work is phased in 2 years maintenance periods and NRC's share of the fi rst maintenance period is approximately EUR 5.4 million, and will involve services such as tramway track, power stations and catenary maintenance, tram rerailing and road maintenance tasks year-around.

On 20 January, an agreement to sell NRC Gravco AS and Septik Tank CO AS to Norva24 was completed. The transaction was made in accordance with NRC Group's strategy to focus on its core business, and the expected net proceeds of approximately NOK 110 million will further improve the fi nancial and strategic fl exibility and be used according to our NRC Group's capital allocation priorities. The net gain to be recognised is estimated to be approximately NOK 40 million and will be reported as part of "other income and expenses" in the Q1 report.

AGN Haga, where NRC Group owns 20% of the shares, received on January 24, a termination notice from Trafi kverket in relation to Station

Haga in Gothenburg (E04). The contract in relation to Kvarnberget (E03) is not part of the termination notice. NRC Group is represented in the board of AGN Haga, without being operationally involved in the projects. The book value of AGN Haga in the NRC Group's accounts is unchanged at NOK 0 million.

In Sweden, NRC Group was appointed to a contract by Lindesberg's municipality for ground, foundation and construction work. The contract, valued at approximately SEK 55 million, will commence in February 2023 and is scheduled for completion in May 2024. In February 2023, NRC Group was appointed to a contract valued at approximately SEK 117 million. The contract for rail services such as electro and groundwork will commence in April 2023 and is scheduled for completion in October 2024.

In Finland, NRC Group was appointed to a contract by Ruskeasuon Varikkokiinteistö Oy for the construction of a tram depot management system in Helsinki. The contract is valued at approximately EUR 4,4 million and will involve rail services such as signalling and telecommunication. The work will commence in February 2023 and is scheduled for completion in August 2024.

Henning Olsen assumed from January the duties of the MD in Sweden as Robert Röder resigned as EVP and MD in Sweden.

On 14 February 2023, an Amendment and Restatement Agreement related to the existing facilities agreement with Danske Bank was signed. Changes in the Agreement concern a reduction of annual instalments, a postponed fi nal settlement date to 8 July 2024 and increased leverage ratio covenant with 0.25 for the period Q4 2022 until Q4 2023.

IR POLICY

NRC Group's objective is to serve the fi nancial market precise and relevant information about the company to ensure that the share price refl ects the underlying values and prospects.

NRC Group discloses price sensitive information relating to signifi cant contracts and investments, other material changes or events in NRC Group to investors and other market players through the Oslo Stock Exchange, www. newsweb.no, and the company's website, www. nrcgroup.com. In addition, NRC Group intends to publicly disclose all tenders awarded with a value exceeding NOK 30 million. All tenders awarded are normally subject to a 10-days appeal period before the award is defi nitive. The

policy is to not inform the market of expiry of any such appeal period unless an actual appeal has been fi led and the company is informed by the customer that the appeal is being considered and that this may lead to a delay or cancellation of the contract. Information about other tenders awarded will be updated quarterly as part of the company's order backlog.

DIVIDEND POLICY

NRC Group expects to create value for its shareholders by combining increased share value in a long-term perspective and distribution of dividends. The company aims to have a dividend policy comparable with peer Groups in the industry and to give its shareholders a competitive return on invested capital relative to the underlying risks. The Board of Directors at NRC Group has introduced a dividend policy whereby, subject to a satisfactory underlying fi nancial performance, it is NRC Group's ambition over time to distribute dividend a minimum of 30% of the profi t for the year. The target level will be subject to adjustment depending on possible other uses of funds. The Annual General Meeting (AGM) resolves the annual dividend, based on the proposal by the Board of Directors.

The Statement of the Board of Directors and CEO

The Board of Directors and CEO have today reviewed and approved the interim fi nancial report and the unaudited condensed interim consolidated fi nancial statements for the fourth quarter of 2022. The condensed interim consolidated fi nancial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU.

To the best of our knowledge, the interim fi nancial report gives a fair view of NRC Group's assets, liabilities, fi nancial position and performance. In addition, the report gives a fair overview of important events in the reporting period and their impact on the fi nancial statements and describes the principal risks and uncertainties associated with the next reporting period.

Lysaker, 20 February 2023

THE BOARD OF DIRECTORS OF NRC GROUP ASA

Rolf Jansson Chairman of the BoD Outi Henriksson Board member

Mats Williamson Board member

Heikki Allonen Board member

Eva Nygren Board member Karin Bing Orgland Board member

Henning Olsen CEO NRC Group ASA

Tove Elisabeth Pettersen Board member

Reconciliation of EBITA* (ex M&A)

Reconciliation of Net cash/net interest-bearing debt position

Reconciliation of Net working capital (NWC)

Alternative performance measures are used to describe the development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by Group management and Board of Directors to measure the Groups financial performance. Alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement. The Group believes that APMs such as EBITA* (*excluding other income and expenses) are commonly reported by companies in the markets in which it competes and are widely used by investors in comparing performance on a consistent basis without

regard to factors such as depreciation on fixed assets, amortisation of intangible assets and M&A expenses, which can vary significantly, depending upon accounting methods (in particular when acquisitions have occurred) or based on non-operating factors. Accordingly, the Group discloses these APMs to permit a more complete and comprehensive analysis of its underlying operating performance relative to other companies and across periods, and of the Group's ability to service its debt. Because companies may calculate EBITA and EBITDA, and EBITA and EBITDA margin differently, the Group's presentation of these APMs may not be comparable to similar titled measures used by other companies.

Alternative performance measures and definitions

(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Operating profit/loss (EBIT)	-332	10	-240	42
Other income and expenses	-1	-22	-2	-34
Amortisation and impairment	-361	-19	-389	-64
EBITA*	31	50	151	139
Depreciation	-50	-47	-185	-196
EBITDA*	81	97	335	336

Long-term leasing liabilities	353	319
Other non-current interest-bearing liabilities	741	880
Short-term leasing liabilities	175	173
Other interest-bearing current liabilities	153	146
Interest-bearing debt	1 423	1 518
Minus:
Cash and cash equivalents	472	626
Net interest-bearing debt	950	891
Minus:
Total leasing liabilities	528	492

(Amounts in NOK million)		31.12.2022 31.12.2021
Long-term leasing liabilities	353	319
Other non-current interest-bearing liabilities	741	880
Short-term leasing liabilities	175	173
Other interest-bearing current liabilities	153	146
Interest-bearing debt	1 423	1 518
Minus:
Cash and cash equivalents	472	626
Net interest-bearing debt	950	891
Minus:
Total leasing liabilities	528	492
Net interest-bearing debt excl. leasing	422	399

(Amounts in NOK million)		31.12.2022 31.12.2021
Total inventories	29	28
Total receivables	1 425	1 359
Current assets (ex cash)	1 454	1 387
Minus:
Other current liabilities	1 445	1 422
Net working capital	9	-35

Definitions

Term	Description	Term	Description
Addressable tender pipeline	The total of any tender processes above NOK 30 million expected to be made available during the next 9 months and relevant for the Group, based on the current group operations, to consider participation.	M&A expenses	Expensed external costs related to merger and acquisitions, including any subsequent adjustments to the final settlement of contingent considerations that is not included in the final purchase price allocation.
Book-to-bill ratio	The nominal value of orders received divided by external revenue for the corresponding period.	Net interest-bearing debt	Interest-bearing liabilities minus cash and cash equivalents.
Contract value	The amount stated in the contract for contract work	Net working capital (NWC)	The net amount of inventories, receivables (including contract assets) and other current liabilities (including contract liabilities).
EBIT	excluding VAT. Operating profit.	Operating lease agreements	Lease agreements that are not financial lease agreements, including real estate rent.
EBITA	Operating profit plus amortisation and impairment on intangible assets, including intangible assets such as customer relations	Order backlog	Total nominal value of orders received less revenue recognised on the same orders.
	and order backlog accounted for as part of the purchase price allocation under business combinations and IT software investments.	Order intake	Total nominal value of orders received.
EBITA* (ex M&A)	EBITA plus other income and expenses.	Organic growth	Total revenue growth compared to comparable numbers for the same period prior year including full year revenue effect (proforma) for any acquired business, calculated
EBITA* (ex M&A) %	EBITA ex M&A in relation to operating revenues.		in local currency.
EBITDA	EBITA plus depreciations on fixed assets and right-to-use assets.	Other income and expenses	Other income and expenses consist of M&A expenses, subsequent adjustment of contingent considerations or other
EBT	Profit before tax.		subsequent adjustments of final purchase price allocation in business combinations that are recognised in profit or loss.
Financial Lease Agreements	Lease agreements transferring the main risk and control of the assets to the lessee.	Sickness Absence	Absence from work related to illness or injury in alignment with local employment legislation on sickness absence, calculated
FTIA	Finnish Transport Infrastructure Agency		as number of days with sickness absence divided by number of possible workdays.
Equity ratio	Total equity in relation to total assets.	TRI	Frequency of injuries with and without absence for
LTI	Injuries resulting in absence at least one full day per million man-hours including subcontractors.		personnel (employees and rented workers) and subcontractors per million hours worked.
LTM	Last twelve months on a rolling basis.	TRV	Trafikverket – Swedish Transport Administration

Executive Management Board of Directors

Henning Olsen CEO

Ole Anton Gulsvik CFO

Arild Ingar Moe EVP and MD NRC Group Norway

Harri Lukkarinen EVP and MD NRC Group Finland

Lene Engebretsen EVP and Head of communications

Jussi Mattsson EVP and Head of Strategy Group and Finland

Marianne Ulland Kellmer EVP and Head of HR

Rolf Jansson Chairman of the BoD

Mats Williamson Board member

Eva Nygren Board member

Tove Elisabeth Pettersen Board member

Outi Henriksson Board member

Heikki Allonen Board member

Karin Bing Orgland Board member

NRC Group ASA

Visiting Address Lysaker Torg 25 1366 Lysaker Norway

Postal Address P.O. Box 18 1324 Lysaker Norway

Financial calendar 2023

Annual General Meeting: 4 May 1st quarter 2023: 24 May 2nd quarter and 1st half year 2023: 29 August 3rd quarter 2023: 24 November