NRC Group — Earnings Release 2022

Feb 2, 2023

Financial update: Preliminary EBITA* of NOK 151 million for 2022

Financial update: Preliminary EBITA* of NOK 151 million for 2022

NRC Group ASA ("NRC Group" or the "Company") announces preliminary EBITA* of NOK

31 million for the fourth quarter of 2022 and NOK 1.95 billion in revenue. The

estimated EBITA* for 2022 is NOK 151 million, resulting in an EBITA* margin of

2.1% for 2022, and the estimated revenue for 2022 is NOK 7.0 billion.

NRC Group Sweden's preliminary EBITA* for 2022 is NOK -49 million compared to

NOK -67 million in 2021. The negative result is due to losses in the Civil

construction operations. In 2022, Civil construction had a revenue of

approximately NOK 358 million out of a total NOK 2.08 billion of revenue in

Sweden. The Company has decided to explore strategic options for the Civil

construction operations in Sweden.

"The Swedish Rail construction division improved during 2022, with strong growth

in revenue and a positive EBITA* for the year. We have also succeeded in

improving results in Maintenance, contributing to positive EBITA* results - and

winning 4 maintenance contracts, providing a solid outlook for this business.

However, with the losses in Civil we are not able to deliver satisfactory

results in Sweden in total. As a consequence, we will do a strategic review of

the Civil operations and implement necessary actions to secure profitability in

Sweden", says Henning Olsen, CEO of NRC Group.

Restoring profitability in Sweden is the main priority for the Group. Henning

Olsen has assumed the duties of the Managing Director in Sweden, as Robert Röder

resigned as EVP and Managing Director for Sweden. Ole Anton Gulsvik, CFO of NRC

Group, has assumed the duties of the Head of Finance in Sweden.

The development in NRC Group's operations in Finland and Norway is according to

plan. Finland continues to deliver strong results with a preliminary EBITA* of

NOK 155 million corresponding to an EBITA* margin of 6.0%. The positive

development in Norway continues with a preliminary EBITA* of NOK 80 million,

representing an EBITA* margin of 3.4%.

The Company expects non-cash impairment charges of NOK 370 million in the fourth

quarter, related to the Swedish business. NRC Group's financial position remains

solid with a cash position per 31 December 2022 of approximately NOK 472

million, net interest-bearing debt of NOK 950 million, and an equity ratio of

45%.

The market outlook for rail infrastructure investments is strong, and The

Company's medium-term targets and long-term ambitions remain unchanged.

The Company will provide further information regarding the 2023 outlook in

connection with the fourth quarter 2022 report, scheduled for release on 21

February 2023 at 07:00 CET.

For further information, please contact: Henning Olsen, CEO of NRC Group, + 47

91 74 15 92.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation, and is subject to the disclosure requirements pursuant

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

The stock exchange announcement was published by Siri McKellar Nilsen,

Administration, NRC Group ASA.

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Alternative performance measures and definitions:

EBITA

Operating profit plus amortisations on intangible assets, including intangible

assets such as customer relations and order backlog accounted for as part of the

purchase price allocation under business combinations and IT software

investments.

EBITA*

EBITA plus other income and expenses.

EBITA* margin

EBITA* in relation to operating revenues.

Other income and expenses

Other income and expenses consist of M&A expenses, subsequent adjustment of

contingent considerations or other subsequent adjustments of final purchase

price allocation in business combinations that are recognised in profit or loss.

Net interest-bearing debt

Interest-bearing liabilities minus cash and cash equivalents.

Equity ratio

Total equity in relation to total assets.