NRC Group — Investor Presentation 2023

Nov 24, 2023

24 November 2023

3 rd quarter 2023

CEO Anders Gustafsson CFO Ole Gulsvik

INTRODUCTION

Anders Gustafsson

New CEO of NRC Group

• more than 30 years of industrial experience
• various management positions at NCC
• the President and CEO at Svevia from 2017 2023
• Master of Science degree in Economics and an Executive MBA from the University of Stockholm
• CEO of NRC Group since October 2023

Capitalising on our unique Nordic position from 2024 to 2028

NRC GROUP

Sustainable growth going forward

Continued margin improvement in Norway

2

Lower, yet sustainable profitability level in Finland

3

Turnaround in Sweden is on track

High demand for infrastructure - record high tender pipeline

NOK 35 billion tender pipeline in Group¹ Notes

• BNOK value, # of tenders, next 9 months Increase by NOK 13.5 billion in tender pipeline compared to Q2 23 and an increase by 15.7 bn compared to Q3 22
  • Compared to Q2 23 the tender pipeline for Sweden increased by 2.1 billion
  • Pipeline increase of NOK 5.2 billion in Norway compared to Q2 23
  • The tender pipeline in Finland doubled compared to Q2 23

Significant opportunities in light rail contracts FINLAND

Estimated light rail market size EUR million, NRC Group estimates • Tampere phase 3 design phase awarded to 0 100 200 300 400 500 2023 2024 2025 2026 2027 2028 Future prospects (Turku, Western Helsinki, Vantaa) Competitors projects (Kalasatama-Pasila) NRC & YIT Alliance awarded projects (Tampere 3) NRC & YIT Alliance ongoing/finalized projects (Tampere 1&2, Jokeri, Crown bridges)

Notes

• NRC Group & YIT alliance. Decision on project execution made during fall 2024
• NRC Group contracted on 6 of 6 light rail projects, i.e. all tenders NRC Group has participated
• New light rail line construction projects executed with alliance model
• 3 upcoming tenders of total value of approx. EUR 1.0 billion with revenue impact mainly from 2025 and onwards

HEALTH AND SAFETY Committed to providing a safe and secure workplace

LTI¹ 6.7 2022: 4.8 2022: 15.3

SICKNESS ABSENCE

3.7% 2022: 4.0% 2022: 2

TRI² 19.8

SERIOUS INJURIES

0

1) LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors).

2) TRI: Frequency of injuries with and without absence for personnel (employees, rented workers and subcontractors) per million hours worked.

Figures per last twelve months per 30 September 2023 compared with last twelve months per 30 September 2022.

PROFIT & LOSS Good financials – although below last year

96 47 -41 60 91 28 -48 65 80 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 EBIT adj. NOK million

(Amounts in NOK million)	Q3 2023	Q3 2022	YTD Q3 2023	YTD Q3 2022	FY 2022
Revenue	1 844	1 988	4 932	5 075	7 030
Operating expenses	-1 711	-1 849	-4 677	-4 821	-6 695
Depreciation and amortisation1	-52	-48	-159	-144	-198
EBIT adj.	80	91	96	110	137
EBIT adj. margin	4,3 %	4,6%	2,0 %	2,2 %	2,0 %
Adjusting items2	-6	-6	-9	-18	-378
Net financial items	-18	-14	-50	-43	-58
Share of profit from associates and JVs	0	-9	0	-9	-15
Taxes	-7	-15	4	-10	-51
Net profit / loss	49	46	43	30	-364

Notes

• Revenue decreased 7% in Q3, and down 13% organically in local currency
• Reduced EBIT adj. at NOK 80 million, down from NOK 91 million last year
• Operational margin of 4.3% compared to 4.6% in Q3 2022

1) Excluding amortisation and impairment from PPA 2) Adjusting items explained in Appendix

OPERATIONAL REVIEW NRC GROUP NORWAY Improved profitability – lower backlog

-38 26 47 ^{63 70 80 85 90 96} Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 EBIT adj. LTM Order backlog (total) NOK million NOK million

Key Figures Notes

(NOK million)	Q3 2023	Q3 2022
Revenue	600	554
EBIT adj.	33	27
EBIT adj. margin	5.5%	4.9%
Order intake	273	524

• Revenue growth in the quarter of 8% and organic growth of 12%
• Continued improvement in profitability driven by improved results in Rail and Civil construction. Environment delivered results at same level as last year. Weaker results in the demolition and recycling business was offset by continued strong results from Gunnar Knutsen, the Group's mass transportation company.

• Book-to-Bill at 0.5 in the quarter

Key Figures Notes

(NOK million)	Q3 2023	Q3 2022
Revenue	447	630
EBIT adj.	5	0
EBIT adj. margin	1.1%	0.1%
Order intake	170	1 321

• Revenue reduced by 29 % and -24% in local currency
• Improved profitability in Q3, with positive financial momentum
• Turnaround according to plan and actions yield results
• Divestment of Civil operations in Karlstad completed
• Book-to-Bill of 0.4 in local currency

OPERATIONAL REVIEW NRC GROUP FINLAND Reduced result - strong pipeline

EBIT adj. LTM Order backlog (total)

Key Figures Notes

(NOK million)	Q3 2023	Q3 2022
Revenue	805	804
EBIT adj.	49	75
EBIT adj. margin	6.1%	9.3%
Order intake	338	316

• Revenue growth of 0% and negative -12% in local currency
• Reduced profitability compared to Q3 last year due to reduced margins in Rail construction
• Comprehensive analysis to be conducted during Q4
• Book-to-Bill of 0.4 in local currency

11

BACKLOG Low order intake in the quarter

2 682 1 872 876 2 670 2 161 1 254 1 251 1 566 773 1,2 1,3 1,3 1,3 1,1 1,0 1,0 0,9 0,7 -0,1 0,2 0,4 0,6 0,8 1,0 1,2 1,4 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Announced Unannounced LTM book-to-bill Order intake & Book-to-bill LTM NOK million

Order backlog current year

BALANCE SHEET Net debt position in line with last year

(Amounts in NOK million)	30.09.2023	30.09.2022	31.12.2022	Net interest-bearing debt
ASSETS
Intangible assets	2 540	2 907	2 493	NOK million
Right-of-use assets	528	510	564
Total other non-current assets	176	215	207
Cash and cash equivalents	346	412	472
Other current assets	1 982	1 794	1 454	984
Total assets	5 571	5 839	5 191		891	844
EQUITY AND LIABILITIES
Total equity	2 447	2 727	2 312
Long-term lease liabilities	325	315	353
Other non-current interest-bearing liabilities	0	780	741
Other non-current liabilities	11	17	11
Short-term lease liabilities	164	161	175
Other interest-bearing current liabilities	849	154	153
Other current liabilities	1 775	1 685	1 445
Total equity and liabilities	5 571	5 839	5 191
Equity ratio	44 %	47 %	45 %

13

CASH FLOW Increased net working capital in the period

Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23

Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23

1) The Group has a NIBOR hedge which partly offsets the effects of increased market interest rates. 14

FINANCIAL POSITION Refinancing completed after end of quarter

Proforma maturity profile post refinancing

Bank debt Bond

SUMMARY

Q3 in brief

Financials

• Revenues at NOK 1.8 million (NOK 2.0 million)
• EBIT adj. of NOK 80 million (NOK 91 million)

Market

• The market for critical infrastructure continues to be a high priority
• Tender pipeline at record-high level
• Strong sustainable profile

Operations

• Continued improved profitability in Norway positioning to secure significant contracts
• Lower profitability level in Finland comprehensive analysis to be conducted
• Improved profitability in Sweden turnaround well on track

Outlook

• Continued focus on measures to improve profitability commited to achieving long-term profitability above 5%
• For 2023, NRC Group expects a slight decrease in revenue and an EBIT adj. margin in line with 2022
• Forthcoming strategy period to be presented in a CMU during first half of 2024

Q4 2023 results 27 February

Appendix

Impact of change from EBITA* to EBIT adj.
-------------------------------------------	--

(mounts in NOK million)	Q1 2021	Q2 2021				Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2023 Q2 2023					Q3 2023	FY 2020	FY 2021
evenue	1 129	1 529	1 698	1 601	1 176	1912	1 988	1 954	1 291	1 797	1 844	6 449	5 957	7 030
BITA*	-59	47	102	50	-37	રિક	04	31	-85	68	76	50	139	151
Amortisations of IT software investments	-6	-15	-6	- ப	-3	-3	-3	-3	-4	-1	-3	-25	-30	-13
Restructuring items	0
Write-down operations to be discontinued	0								35
BIT adj.	-65	32	વેર	47	-41	60	91	28	-48	રેક	80	25	110	137
BIT adj. %	-5,7 %	2,1 %	5,7 %	2,9 %	-3,5 %	3,1 %	4,6 %	1,4 %	-3,7 %	3,6 %	4,3 %	0,4 %	1,8 %	2,0 %

Reconciliation of EBIT adj.

(Amounts in NOK million)	Q3 2023	Q3 2022	YTD 2023	YID 2022	FY 2022
Operating profit/loss (EBIT)	73	85	88	91	-240
Adjusting items
Gain from sale of Gravco	O	0	-40	O	0
M&A expenses	-1	0	0	1	2
Amortisation and impairment from PPA*	O	6	0	18	376
Restructuring items	3	O	9	0	0
Write-down operations to be discontinued	प	0	40	0	0
Adjusting items, total	6	б	9	18	378
EBIT adj.	80	91	96	110	137
Depreciation	49	44	148	135	185
Amortisation of IT software investments	3	3	11	10	13
EBITDA adj.	132	138	255	254	335

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

** PPA (purchase price allocation) refers to merger related fair value adjustments

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.