NRC Group — Investor Presentation 2023

May 24, 2023

1st quarter 2023

CEO Henning Olsen CFO Ole Gulsvik

24 May 2023

KEY FIGURES Q1 23 Continued growth and strong backlog

REVENUE NOK 1.3 billion

Q1 2022: NOK 1.2 billion

EBIT adj. NOK -48 million

Q1 2022: NOK -41 million

EBIT adj. margin

Q1 2022: -3.5%

ORDER INTAKE Q1 2022: NOK 0.9 billion

OPERATING CASH FLOW NOK 1.3 billion NOK -48 million

Q1 2022: NOK 69 million

ORDER BACKLOG Q1 2022: NOK 7.3 billion NOK 8.2 billion

HEALTH AND SAFETY Injuries resulting in absence

LTI¹ 6.2

SICKNESS ABSENCE

4.3% 2022: 4.9% 2022: 1

TRI² 16.1 2022: 5.3 2022: 17.2

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 31 March 2023 compared with last twelve months per 31 March 2022.

PROFIT & LOSS Stable operational performance in low-season quarter

(Amounts in NOK million)	Q1 2023	Q1 2022	FY 2022
Revenue	1 291	1 176	7 030
Operating expenses	-1 289	-1 168	-6 695
Depreciation and amortisation1	-52	-48	-198
EBIT adj.	-48	-41	137
EBIT adj. margin	-3,7%	-3,5%	2,0%
Adjusting items2	1	-7	-378
Net financial items	-15	-14	-58
Share of profit from associates and joint ventures	0	0	-15
Taxes	22	13	-51
Net profit / loss	-43	-48	-364

Notes

• Revenue growth of +10% from Q1 22 and +7% organic growth
• EBIT adj. at NOK -48 million, down from NOK -41 million last year
• Includes NOK 4 million in net gain from sale of machinery, compared to NOK 19 million in Q1 last year
• Discontinue Civil Sweden, one-time wind-down costs of NOK 35 million in adjusting items

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

KEY FINANCIAL FIGURES LAST TWELVE MONTHS (LTM) Continued sales growth, lower margins

BACKLOG Improved short- and long-term order backlog

3 729

BALANCE SHEET Solid financial position - equity ratio at 46%

(Amounts in NOK million)	31.03.2023	31.12.2022	Net Interest-bearing debt
ASSETS
Intangible assets	2 570	2 493	NOK million
Right-of-use assets	559	564
Total other non-current assets	208	207
				1 178
Cash and cash equivalents	395	472	1 107
Other current assets	1 415	1 454			984
Total assets	5 146	5 191
EQUITY AND LIABILITIES
Total equity	2 376	2 312
Long-term lease liabilities	347	353
Other non-current interest-bearing liabilities	823	741
Other non-current liabilities	18	11
Short-term lease liabilities	174	175
Other interest-bearing current liabilities	56	153
Other current liabilities	1 353	1 445
Total equity and liabilities	5 146	5 191
Equity ratio	46 %	45 %

Net Interest-bearing debt ex. leases: NOK 484 million

7

CASH FLOW Increased working capital

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

FINANCIAL POSITION Increased working capital impacting leverage ratio

FINANCIAL POSITION

Operational review

OPERATIONAL REVIEW NRC GROUP NORWAY Continued improved performance

EBIT adj. LTM Order backlog (total)

Key Figures Notes

(NOK million)	Q1 2023	Q1 2022
Revenue	489	499
EBIT adj.	9	4
EBIT adj. Margin	1.8%	0.8%
Order intake	396	365

• Revenue growth in the quarter of -2% and organic growth of +2%
• Continued improvement in profitability driven by improved results in Civil construction, partly offset by Environment
• Book-to-Bill at 0.8 in the quarter
• Divestment of non-core Gravco business unit at attractive terms

Solid tender pipeline

NOK 10.7 billion tender pipeline¹ Notes

Rail construction

BNOK value, # of tenders, next 9 months Increase by NOK 0.5 billion in tender pipeline compared to Q4 22 driven by Civil construction and Environment

Tender pipeline for Civil construction and Environment increased by NOK 4.5 billion compared to same period last year.

Increased tender pipeline for rail construction by NOK 1.0 billion compared

OPERATIONAL REVIEW NRC GROUP SWEDEN Stable performance – strategic actions implemented

Key Figures Notes

(NOK million)	Q1 2023	Q1 2022
Revenue	340	289
EBIT adj.	-19	-23
EBIT adj. margin	-5.7%	-7.9%
Order intake	385	212

• Closing down Civil construction and new organisation model in place
• Revenue growth of 18 % and 12% in local currency due to volume increase in Rail construction
• Only minor changes in division profitability compared to last year
• Book-to-Bill at 1.1 in local currency

CLOSE-UP ON SWEDEN Discontinued Civil construction business

14

CLOSE-UP ON SWEDEN New model for Swedish organisation

• Niklas Sundel appointed as COO for NRC Group Sweden and will continue as Head of Maintenance
• Strategic review of Civil business is completed. Civil business in Karlstad to be discontinued
• Actions to improve project profitability continues including cost reduction measures executed
• Targeting organic growth in Maintenance

High tender activity expected to continue

NOK 12.8 billion tender pipeline¹ BNOK value, # of tenders, next 9 months #7 #7 #5 #5 MNOK >300 MNOK 100-300 MNOK 30-100 Rail maintenance 5.0 7.8 Rail construction

Notes

Increase of NOK 0.4 billion for Rail construction and NOK 3.4 billion for Rail Maintenance compared to Q4 22.

Total increase of NOK 3.6 billion compared to same period last year for Rail construction and Maintenance.

Tender pipeline for Civil construction excluded from overview due to discontinued Civil operations in Karlstad.

OPERATIONAL REVIEW NRC GROUP FINLAND Growth and solid order intake

EBIT adj. LTM Order backlog (total)

Key Figures Notes

(NOK million)	Q1 2023	Q1 2022
Revenue	470	389
EBIT adj.	-27	-11
EBIT adj. margin	-5.8%	-2.9%
Order intake	476	297

• Revenue growth of 21% and 8% in local currency
• Net gain from sale of machinery NOK 3 million in the quarter compared to NOK 17 million same quarter last year
• Book-to-Bill of 1.0 in local currency

Growth in tender pipeline

NOK 6.3 billion tender pipeline¹ Notes

Rail and Civil construction

MNOK >300 MNOK 100-300 MNOK 30-100

BNOK value, # of tenders, next 9 months Increase by NOK 0.5 billion in the tender pipeline from Q4 22 and an increase of 5.1 billion compared to Q1 22.

Increase in Rail and Civil construction by NOK 1.3 billion compared to Q4 22. Rail pipeline totals NOK 2.5 billion and Civil 3.3 billion.

Decrease in Maintenance by NOK 0.8 billion compared to Q4 22, with limited areas up for tendering next 9 months.

Secured first Civil construction contract worth EUR 3.9 million after end of quarter.

SUMMARY

Q1 in brief

Financials

• Growth continues with revenue increase of 10% and 7% organically in local currency
• EBIT adj. of NOK -48 million, a reduction from NOK -41 million last year
• Order backlog remains high and improved short-term backlog
• Divestment of Gravco in Q1 2023 resulted in a gain of NOK 40 million

Operations

• Continued improved results in Norway
• Growth and solid order intake in Finland
• Actions to improve profitability in Sweden continues, new organisation model in place
• Discontinued Civil business in Sweden, one-time wind-down cost NOK 35 million

Outlook 2023

• Continued positive operational and financial development
• Slight decrease in revenue
• Moderate increase in EBIT adj. margin

Q2 2023 results 29 August

APPENDIX

Impact of change from EBITA* to EBIT adj.

(Amounts in NOK million)	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021Q4 2021		Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	FY 2020		FY 2021	FY 2022
Revenue	1 254	1 661	1 956	1 578	1 129	1 529	1 698	1 601	1 176	1 912	1 988	1 954	1 291		6 449	5 957	7 030
EBITA*	-54	27	88	-10	-59	47	102	50	-37	63	94	31	-85		50	139	151
Amortisations of IT software investments	-5	-6	-6	-8	-6	-15	-6	-4	-3	-3	-3	-3	-4		-25	-30	-13
Restructuring items	0	0	0	0	0	0	0	0	0	0	0	0	6		0	0	0
Write-down operations to be discontinued	0	0	0	0	0	0	0	0	0	0	0	0	35		0	0	0
EBIT adj.	-59	21	82	-18	-65	32	96	47	-41	60	91	28	-48		25	110	137
EBIT adj. %	-4,7 %	1,3 %	4,2 %	-1,1 %	-5,7 %	2,1 %	5,7 %	2,9 %	-3,5 %	3,1 %	4,6 %	1,4 %	-3,7 %		0,4 %	1,8 %	2,0 %

Reconciliation of EBIT adj.

(Amounts in NOK million)	Q1 2023	Q1 2022	FY 2022
Operating profit/loss (EBIT)	-49	-47	-240
Adjusting items
Gain from sale of Gravco	-40	0	0
M&A expenses	1	1	2
Amortisation and impairment from PPA**	0	6	376
Restructuring items	6	0	0
Write-down operations to be discontinued	35	0	0
Adjusting items, total	1	7	378
EBIT adj.	-48	-41	137
Depreciation	47	45	185
Amortisation of IT software investments	4	3	13
EBITDA adj.	3	8	335

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

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

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