NRC Group — Investor Presentation 2022

Aug 18, 2022

18 August 2022

2nd quarter 2022 and 1st half 2022

CEO Henning Olsen CFO Ole Gulsvik

KEY FIGURES Q2 22 Improved results and strong order intake

REVENUE

NOK 1.9 billion

Q2 2021: NOK 1.5 billion

EBITA*

NOK 63 million

Q2 2021: NOK 47 million

EBITA* margin

Q2 2021: 3.0% 3.3%

ORDER INTAKE Q2 2021: NOK 2.2 billion

OPERATING CASH FLOW NOK 2.7 billion NOK -90 billion

Q2 2021: NOK -45 billion

ORDER BACKLOG Q2 2021: NOK 6.7 billion NOK 8.3 billion

HEALTH AND SAFETY Fewer injuries resulting in absence

LTI¹ 4.3

SICKNESS ABSENCE 4.3% Q2 2021: 3.9% Q2 2021: 0

TRI² 16.6 Q2 2021: 7.8 Q2 2021: 20.5

SERIOUS INJURIES

1

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 30 June 2022 compared with YTD 30 June 2021.

INFLATION AND SYPPLY CHAIN RISKS Limited impacts of the global economy and the war in Ukraine

Limited supplies from Ukraine

Short term well protected against rise in material and fuel prices

3

Continue to manage risks in projects

PROFIT & LOSS Improved results

EBITA*

(Amounts in NOK million)	Q2 2022	Q2 2021	FY 2021
Revenue	1 912	1 529	5 957
Operating expenses	1 804	1 430	5 621
Other income and expenses (M&A expenses)	0	-5	-34
EBITDA	109	93	302
Depreciation	-45	-52	196
EBITA*	63	47	139
EBITA	63	41	105
Amortisation	-9	-21	64
Operating profit/loss (EBIT)	54	20	42
Net financial items	-14	-15	-66
Profit/loss before tax (EBT)	40	-5	-24

Notes

• Revenues +25 % from Q2 21

• EBITA* improvement of NOK 16 million compared to same period last year

• EBITA* margin of 3.3% vs 3.0% last year

KEY FINANCIAL FIGURES LAST TWELVE MONTHS (LTM) Improvement program is yielding results

BALANCE SHEET The debt level continues to trend downwards

(Amounts in NOK million)	30.06.2022	31.06.2021	31.12.2021	Net Interest-bearing debt
ASSETS				NOK million
Intangible assets	2 883	2 917	2867
Right-of-use assets	490	527	514
Total other non-current assets	206	216	193		1 223
				1 167		1 157
Cash and cash equivalents	413	441	626
Other current assets	1 581	1 508	1 387
Total assets	5 573	5 610	5 587
EQUITY AND LIABILITIES
Total equity	2 646	2 611	2 622
Long-term lease liabilities	304	340	319
Other non-current interest-bearing liabilities	813	957	880
Other non-current liabilities	24	34	26
Short-term lease liabilities	154	175	173
Other interest-bearing current liabilities	151	148	146
Other current liabilities	1 480	1 344	1 422
Total equity and liabilities	5 573	5 610	5 587

NIBD ex leasing Leasing

Net Interest-bearing debt ex. leases: NOK 551 million

CASH FLOW Solid cash position even at peak working capital season

* Before other income and expenses (M&A expenses) 8

FINANCIAL POSITION Reduced leverage ratio increases the financial flexibility

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

BACKLOG Strong order intake and order backlog

EU TAXONOMY Results 1st half 2022

	Eligible	Aligned
Turnover (revenue)	88% 2021: 87%	69% 2021: 62%
Operational expenses (OpEx)	88% 2021: 87%	69% 2021: 63%
Investments (CapEx)	76% 2021: 77%	68% 2021: 64%

FINANCIAL POSITION

Operational review

OPERATIONAL REVIEW NRC GROUP NORWAY Higher activity and improved performance

73 37 -14 -17 -42 -38 26 47 63 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 EBITA* LTM Order backlog NOK million NOK million

Key Figures Notes

(NOK million)	Q2 2022	Q2 2021
Revenue	686	433
EBITA*	18	2
EBITA* margin	2.6%	0.5%
Order intake	918	591

• Revenue growth of 58% with improvement in all division
• Improved profitability driven by operational improvement in the environment division
• LTM Book-to-Bill at 1.1

Solid tender pipeline with high number of large projects

pipeline compared to Q1 22 mainly related to civil and environment, and a decrease of NOK 0.9 billion vs last year, related to rail constructions

Budget for 2022²NOK 26.7 billion, at same level as 2021 and in National Transport Plan for 2022

OPERATIONAL REVIEW NRC GROUP SWEDEN Improved results and high order intake

Key Figures Notes

(NOK million)	Q2 2022	Q2 2021
Revenue	516	400
EBITA*	2	-12
EBITA* margin	0.4%	-3.1%
Order intake	1 078	288

• Revenue growth of 34% in local currency due to increased volumes in Rail and Civil construction
• Improved profitability due to better project margins
• LTM Book-to-Bill at 1.5 in local currency

High tender activity expected

NOK 10.7 billion tender pipeline¹ Notes

BNOK value, # of tenders, next 9 months

Rail and civil construction

Increase of NOK 0.6 billion in tender pipeline vs Q2 21 and increase of NOK 1.7 billion compared to same period last year explained by both rail construction and maintenance

Budget for 2022² SEK 30.7 billion, +2% higher than estimated in the National Transport Plan

OPERATIONAL REVIEW NRC GROUP FINLAND Good profitability

Key Figures Notes

(NOK million)	Q2 2022	Q2 2021
Revenue	712	695
EBITA*	53	65
EBITA* margin	7.4%	9.4%
Order intake	674	1,287

• Increased volumes in rail constructions
• Decrease in profitability due to the lower activity in light rail and reduced sale of machinery
• LTM Book-to-Bill of 1.3 in local currency

Increased tender pipeline for maintenance

MNOK >300 MNOK 100-300 MNOK 30-100

pipeline related to maintenance contracts

Decrease of NOK 1.0 billion from same period last year mainly related to reduced tender pipeline for rail construction

Continued high investment level expected for light rail projects in the

SUMMARY

Q2 in short

Financials

• Improved results and revenue growth of 25%
• High order intake and record high order backlog

Operations

• Short term well protected against rise in material and fuel prices
• Continued good profitability in Finland
• Improved results in Norway and Sweden
• Secured 3 existing maintenance contracts in Sweden

Unchanged outlook 2022

• Continued positive operational and financial development
• Moderate to strong revenue growth
• Moderate increase in EBITA* margin compared to 2021

Q3 2022 results 8 November

DISCLAIMER

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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.

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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.

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