NRC Group — Investor Presentation 2015

Aug 28, 2015

Presentation of 2nd quarter and 1st half year financial report 2015 28 August 2015

Forward Looking Statements

This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking. You should not place undue reliance on these forward-looking statements for many reasons.

These forward-looking statements reflect current views with respect to future events and are by their nature subject to significant risk and uncertainties because they relate to events and depend on circumstances that will occur in future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity or performance will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this presentation, either to conform them to actual results or to changes in our expectations.

NRC Group - A leading company within the Nordic infrastructure market

Infrastructure: High on the public agenda

Increased infrastructure spending creates solid foundation for growth

In June 2013, the Norwegian Parliament approved a NOK 173 billion national transportation plan for railway for the 2014 - 2023 periods.

Swedish transportation spending increasing

In Sweden, a SEK 522 billion transportation plan for the period 2014 - 2025 was adopted by the Swedish Government in April 2014.

Increased focus on integrated planning and execution

Increased focus on integrated planning and execution creates interesting opportunities in the crossings between the Rail and Geo business and will benefit larger players like NRC Rail

Growing demand for geo mapping

A wide range of new projects and applications increase the demand for detailed surveying

NTP railway spending and budget 2007 – 2019 (NOKbn)

Source: SSB; NPT; PWC, Trafikverket

Q2 2015 - Highlights

• Significant M&A and capital market activity
• Secured a strong orderbook within Rail and Geo (NOK 1 084m as of Q2 2015 vs. NOK 496m as of Q2 2014)
• Focus on operational integration and synergies
• Results affected by project postponements (Rail in Sweden, Geo) and poor weather conditions (Geo)

Operational update

G d i i i e o v s o n	R i l d i i i a v s o n
P l h d i i i d t t t o o r e a r y s u m m e r w e a e r c o n o n s c a u s n g a a  f Q h i i i 3 t t t c a p r e s n g n o u E h h j d l t t t t t r o p e a n o r o p o o p r o e c s a r e s o n o  u w w , i f l l d t p r o g r e s s n g a u s p e e M j U K f i f i f i l t t a o r p r o g r a m m e o r a s s e n o r m a o n o r r a  i f h b h d l d t t t n r a s r u c u r e a s e e n s o m e w a e a y e C f i l d i i b i l i t t t t t  o s m e a s u r e s m p e m e n e o m p r o v e p r o a y d d l b i l i t a n r e c e n e r a u v u y S h i d b k l t t r o n g g r o n o r e r a c o g  w i h 4 2 % t t + n e q u a r e r - 4 % d h i d i 2 0 1 4 7 t t + c o m p a r e o e s a m e p e r o n -	Q H i h l l f i i d f 2 t t t g e v e o a c v y a e n o  O i i i j i i d i l t t t t  p m z n g p r o e c o r g a n z a o n a n n e r n a p r o c e s s e s O i l i i b T B d S J T t t t t p e r a o n a n e g r a o n e e e n e a m a n e a n  w W i i h h i t t t t t n n n g c o n r a c s o n p a r a m e e r s o e r a n p r c e  l ( T B ) a o n e e a m a n e S F H l h f d h E i t t t t o c u s o n e a a e y a n e n v r o n m e n - , L l i b l j h k i H 1 t t t t  o w s u p p y o n s z e a e p r o e c s o e m a r e n ( N ) 2 0 1 5 o r a w y S h i d b k l t t r o n g g r o n o r e r a c o g  w i h 4 4 % t t + n e q a r e r u - d h i d i 1 3 2 % 2 0 1 4 t t + c o m p a r e o e s a m e p e r o n -

Q2 Profit and Loss as reported

• The actual reported figures include Team Bane and SJT for June 2015 only, and NOK 18 million in transaction costs
• Revenue in NOK 135 million (NOK 71 million)
• Net profit NOK 21 million (NOK 1 million)
• Net profit includes recognition of deferred tax assets of NOK 36 million

( ) Am in N O K i l l io t ou n s m n	Q 2 2 0 1 5	Q 2 2 0 1 4	H 1 2 0 1 5	H 1 2 0 1 4	F Y 2 0 1 4
Re ve nu e	1 3 4, 8	1, 3 7	1 2, 4 7	1 1 3, 1	2 4 6, 0
O ing t p e ra e xp e ns e s	1 4 3, 2	6 6, 5	1 9 3, 3	1 1 4, 0	2 3 2, 3
E B I T D A	8, 4 -	4, 8	2 0, 9 -	0, 9 -	1 3, 7
E B I T	1 3, 1 -	2, 4	2 7, 5 -	4, 9 -	5, 5
E B T	1 4, 6 -	1, 8	2 9, 5 -	6, 9 -	4, 5
Ta xe s	3 2 5,	0, 1 -	3 1 5,	0, 2 -	0, 7 -
Pr f i / lo fro in in io t t t o s s m c o n g o p e ra ns u	2 0, 6	1, 7	5, 6	1 7, -	3, 8
Pr f i / lo fro d is inu d io t t t o s s m c o n e o p e ra ns	0, 0	0, 9 -	2, 3 -	2, 8	4, 1
Ne f i / lo t t p ro s s	2 0, 6	0, 8	3, 3	4, 2 -	7, 9

Q2 Pro forma Key Figures – Profit and Loss

• Pro forma figures include historic figures for Team Bane and SJT:
• -Revenue NOK 216 million (NOK 241 million)
• -EBITDA NOK 4 million (NOK 25 million)
• -EBIT NOK -5 million (NOK 18 million)
• -EBT NOK -8 million (NOK 16 million)

( Am in N O K t ou n s i io ) l l m n	Q 2 2 0 1 5	Q 2 2 0 1 4	H 1 2 0 1 5	H 1 2 0 1 4	F Y 2 0 1 4
O ing t p e ra re ve nu e s	2 1 5, 6	2 4 1, 4	3 5 0, 9	3 9 2, 2	9 6 6, 1
O ing t p e ra e xp e ns e s	2 1 1, 9	2 1 6, 8	3 6 9, 6	3 6 2, 6	8 1, 1 7
E B I T D A	3, 7	2 4, 7	1 8, 7 -	2 9, 6	5, 9 1
E B I T D A %	2 %	1 0 %	5 % -	8 %	1 0 %
E B I T	-4 9 ,	1 8, 4	3 4, 3 -	1 8, 1	6 7, 7
E B T	8, 3 -	1 5, 7	4 0, 5 -	1 1, 7	5 6, 9

The figures include pro forma figures for Team Bane and SJT, adjusted for transaction costs related to the Team Bane and SJT transactions, and one-off of NOK 5 million in the first quarter 2015.

Q2 Pro forma Key Figures – Business segments

• Rail division:
• Revenue NOK 157 million (NOK 170 million)
• EBITDA NOK 7 million (NOK 20 million)
• Geo division:
• Revenue NOK 59 million (NOK 71 million)
• EBITDA NOK -1 million (NOK 9 million)

	Q 2 2 0 1 5	Q 2 2 0 1 4	Q 2 2 0 1 5	Q 2 2 0 1 4
( Am in N O K i l l io ) t ou n s m n	Re ve nu e	Re ve nu e	E B I T D A	E B I T D A
Ra i l	1 5 6, 8	1 7 0, 2	6, 9	1 9, 9
G e o	8, 8 5	1, 2 7	0, 5 -	8, 6
Bu in t s e s s s e g m e n s	2 1 5, 6	2 4 1, 4	6, 4	2 8, 4

Pro forma figures: Revenues and EBITDA include pro forma figures for Team Bane and SJT, adjusted for transaction costs related to the completion of Team Bane and SJT transactions in the second quarter 2015 and one-off of NOK 5 million in the first quarter 2015 and excluding ASA costs.

Key Figures – Q2 Balance Sheet

• The increase in assets is mainly related to the acquisitions of Team Bane and SJT completed in the second quarter
• The increase in equity is related to the transactions being partly settled in shares
• After closing of Q2 NRC Group has completed a private placement of NOK 84 million and a subsequent repair issue of NOK 10 million
• These equity issues would as of Q2 had increased the equity ratio to 39%, the current ratio to 1.21 and decreased net interest bearing debt to approximately NOK 120 million

In i b le 3 4 0, 2 0, 5 ta t a ts ng no n- cu rre n s s e Ta i b le 1 2 9, 6 2 4, 5 t a ts ng no n- cu rre n s s e
O he As 2 3 1, 6 7 1, 6 t t ts r c u rre n s e
C h 5 6, 5 5 1, 4 a s
To l As 7 5 7, 9 1 4 7, 9 t t a s e s
S i ha ho l d Eq ty 2 3 6, 8 7 4, 7 re e rs u
No in b ing d b 1 6 6, 6 1, 0 t te t t n- cu rre n re s e a r e
O he L ia b i l i ie 2 3, 3 4, 4 t t t r n o n- cu rre n s
Cu in b ing d b 1 0 1, 4 0, 6 t te t t rre n re s e a r e
O he L ia b i l i ie 2 2 9, 7 6 7, 3 t t t r c u rre n s
i ia i i ie To t l Eq ty d L b l t 7 5 7, 9 1 4 7, 9 a a n s u
Ne in b ing d b 2 1 1, 6 4 9, 8 t te t t re s e a r e -
Eq i Ra io 3 1 % 5 0 % ty t u
Cu Ra io 0, 8 7 1, 8 1 t t rre n

Seasonality and weak Q2 as expected, but record high orderbook

Pro forma revenue Q1 2014 – Q2 2015 (NOKm) Pro forma EBITDA Q1 2014 – Q2 2015 (NOKm)

Orderbook Q1 2014 – Q2 2015 (NOKm)

Both divisions has as of Q2 record high orderbook

• The delayed Swedish tender processes are now back on track with start-ups in 2H 2015 and 2016 (after Q2 NRC has announced an additional contract in Sweden of SEK 107m)
• Improving weather conditions increases production in the Geo division

*Pro forma figures: Revenues and EBITDA include pro forma figures for Team Bane and SJT, adjusted for transaction costs related to the completion of Team Bane and SJT transactions in the second quarter 2015 and one-offs of NOK 5 million in the first quarter 2015.

• There is political consensus in Norway and Sweden to continue the expansion and modernisation of the railways. Budget and investments are at historic high levels and are expected to increase in the coming years.
• The demand for services within the Rail division is expected to grow significantly and as a full service rail provider NRC Group is very well positioned to capitalize on this growth.
• The demand for Geo services within the infrastructure segment is also expected to increase and developments in technology are creating opportunities for new types of geo products and services.

Rail division: Ongoing M&A have significant potential to complement the business offering and create synergies

Ongoing M&A NRC Group – Rail Business model

• Litz and Elektrobyggnad are rail specialist in all railway related electric services, each with focus on there own niche
• In addition Litz has high competence with project management
• Litz and Elektrobyggnad will complement SJT
• SJT will be a turnkey supplier
• SJT will strengthen its competitiveness and ability to deliver full-scale projects based on in-house competence
• Expects that the acquisitions will contribute to additional growth in 2016

Shareholder overview as of 27 august 2015

I N V E S T O R	N U M B E R O F S H A R E S	% O F T O T A L
U R B E X I N V E S T A S	5 6 5 5 8 4 8	2 1, 7 %
D A T U M A S	4 1 0 0 0 0 0	1 5, 7 %
S W E D B A N K A B ( P U B L )	2 7 3 8 4 5 1	1 0, 5 %
C H A R L O T T E H O L D I N G A S	1 9 0 3 0 0 8	7, 3 %
D N B N O R M A R K E T S, A K S J E H A N D / A N A L Y S E	1 7 0 5 9 8 1	6, 5 %
S O G N I N V E S T A S	1 3 2 1 0 4 6	5, 1 %
N O R D E A B A N K A B ( P U B L )	1 1 6 0 1 7 8	4, 4 %
G R A N S H A G E N I N V E S T A S	7 3 1 0 0 7	2, 8 %
H O L M E N S P E S I A L F O N D	7 0 0 0 0 0	2, 7 %
C G O S N R R U P A A	3 9 6 4 5 2	1, 5 %
D A N S K E B A N K A / S	3 8 0 9 5 8	1, 5 %
S O R A A S	3 6 0 0 0 0	1, 4 %
S M E I T N E R A	3 5 4 3 5 8	1, 4 %
A A M O T	2 8 1 1 7 3	1, 1 %
O S C S N R D E A E U R I T I E A B	2 7 7 7 7 8	1, 1 %
S O M P P E N J N P K	2 5 0 3 6 5	1, 0 %
C C S C A R T I F U N D P L	2 5 0 0 0 0	1, 0 %
G S S K R A I N V E T A	2 4 0 0 0 0	0, 9 %
O G C O S G S N R W E I A N R A I L N U L T I N A	2 0 6 5 6 7	0, 8 %
O G S T E A M H L D I N T E L E M A R K A	2 0 0 0 0 0	0, 8 %
To l n b d by 2 0 t t a m e r o ne o p u w	2 3 2 1 3 1 0 7	8 9 %
To l n b f s ha t a m e r o re s u	2 6 1 1 7 4 6 6	1 0 0 %

• Shareholder overview according to VPS as of 27 august 2015
• Approximately 1 750 shareholders

Any questions?