NRC Group — Investor Presentation 2024

Nov 20, 2024

3rd quarter 2024

CEO Anders Gustafsson

CFO Åsgeir Nord

Summary from CEO

• Quarter according to our expectations
• Strengthened our financial platform
• Increased investments in Nordic infrastructure, especially in Norway
• Expecting mediation (ETM) to resume beginning of 2025
• Tender pipeline across all three countries is promising
• Two major wins for light rail in Finland after end of quarter
• 2024 is expected to be on negative side as previously communicated
• Forecast minimum 2% EBIT margin for 2025

High demand for infrastructure – continued robust tender pipeline

NOK 30 billion tender pipeline in Group¹ Notes

BNOK value, next 9 months (submission)

• Continued high tender pipeline across all countries
• Foundation for future profitable growth for NRC Group
• Governmental support to upgrade and build sustainable infrastructure, presents significant opportunities (10 years National Transportation Plans)

Order backlog in line with 2023

Backlog

NOK million Order intake & Book-to-bill LTM Order backlog (total) Order backlog execution 2 161 1 254 1 257 1 566 773 2 024 2 582 1 327 969 1,1 1,0 1,0 0,9 0,7 0,8 1,0 1,0 1,0 0,0 0,2 0,4 0,6 0,8 1,0 1,2 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24

NOK million NOK million

Unannounced Announced LTM book-to-bill

Committed to providing a safe and secure workplace

Health and safety

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

2. Injury that results in prolonged disability

Quarter aligned with previous expectations

Key figures Q3 2024

High activity level, profitability according to expectations

2,5 %

Profit & loss

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

-80

-30

20

70

120

170

(Amounts in NOK million)	Q3 2024	Q3 2023	YTD Q3 2024	YTD Q3 2023	FY 2023
Revenue	2 103	1 844	5 156	4 932	6 732
Operating expenses	-2 015	-1 711	-5 104	-4 677	-6 400
Depreciation and amortisation1	-48	-52	-142	-159	-211
EBIT adj.	40	80	-91	96	121
EBIT adj. margin	1.9 %	4.3 %	-1.8 %	2.0 %	1.8 %
Adjusting items2	0	-6	-709	-9	-16
Net financial items	-20	-18	-62	-50	-59
Share of loss from associates and JVs	-18	0	-18	0	-2
Taxes	-11	-7	-6	4	-8
Net profit / loss	-9	49	-887	43	37

Notes

• Revenues improved from same quarter last year, due to high activity level especially in one rail project in Sweden
• EBIT adj. at NOK 40 million, down from NOK 80 million last year, according to expectations, full year expected to be on the negative side
• LTM profitability dominated by NOK 160 million write down in Q2
• NOK 258 million of increase in operating expenses due to project activity, consisting of subcontractor and material costs
• Correcting for NOK 160 million downward adjustment in Q2, the EBIT adj. margin LTM would be 1.3%

Mediation in the ETM project expected to resume in January

Operational review NRC Group Norway

Revenue and EBIT adj. LTM Order backlog (total)

NOK million and percent NOK million

Key figures Notes

(NOK million)	Q3 2024	Q3 2023
Revenue	569	600
EBIT adj.	13	33
EBIT adj. margin	2.2 %	5.5 %
Order intake	282	273

-2,0 % -1,0 % 0,0 % 1,0 % 2,0 % 3,0 % 4,0 % 5,0 %

• Documentation for claims in ETM project been submitted to Bane NOR, expecting mediation to resume in January 2025
• Revenue 5% lower than last year, order backlog improved
• Secured an important contract for Stange railway station valued at NOK 179 million

Sweden

High activity level impacted revenue, underlying margin recovery

Operational review NRC Group Sweden

Revenue and EBIT adj. LTM Order backlog (total)

NOK million and percent NOK million

Key figures Notes

(NOK million)	Q3 2024	Q3 2023
Revenue	701	447
EBIT adj.	10	5
EBIT adj. margin	1.4%	1.1%
Order intake	294	170

• Increased revenue mainly to due to high activity level in one rail project
• EBIT adj. improved from 1.1% to 1.4%
• Stronger order intake compared to same quarter last year
• Preparing to re-start civil work in 2025, focused on utilising existing competence

Good progress in change program, light rail market picking up

Operational review NRC Group Finland

Key figures Notes

(NOK million)	Q3 2024	Q3 2023
Revenue	841	805
EBIT adj.	31	49
EBIT adj. margin	3.7%	6.1%
Order intake	393	338

0,0 % 1,0 % 2,0 % 3,0 % 4,0 % 5,0 % 6,0 % 7,0 %

• Revenue and order intake better than last year
• Still weaker EBIT adj., but measures are being implemented
• New organisational set up to be implemented in January
• Two alliance light-rail contracts secured after end of quarter

Volatile working capital and cash flow

Cash flow and working capital

Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24

Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24

Net interest-bearing debt, maturity profile and leverage ratio

Financial position

Third quarter

Summary

Financials

• Revenue of NOK 2,103 million (NOK 1,844 million)
• EBIT adj. margin of 1.9% (4.3%)
• Strengthened financial platform with raised capital

Operations

• Important wins in Norway for civil and rail work, new tenders within strategy scope are submitted
• Revenues increased due to high activity level in Sweden, focused efforts to strengthen order backlog
• Major wins for light rail in Finland (after end of quarter), transformation program has started
• Strategy priorities for all countries in place for 2025 to reach 2% EBIT margin in 2025

Market

• Investments from Nordic governments at high levels, increased investments in Norway for 2025
• Tender pipeline across all three countries is promising
• Strong sustainable profile

Guiding

Targets for long-term strategy reaffirmed

2024 targets	2025 targets	2028 targets
NOK ~6.6 billion	NOK ~7 billion	>NOK 10 billion
Revenue	Revenue	Revenue
-0.9 to -1.5%	>2%	>5%
EBIT adj. margin	EBIT margin	EBIT margin
	Linear improvement towards 2028

Q4 2024 results 12 February

Note: NRC Group will report approximately two weeks earlier from Q4 2024

Appendix

Reconciliation of EBIT adj.

(Amounts in NOK million)	03 2024		03 2023 YTD 2024	YTD 2023	FY 2023
Operating profit/loss (EBIT)	40	73	-800	88	105
Adjusting items
Gain from sale of Gravco	0	0	0	-40	-40
M&A expenses	0	-1	-4	0	-7
Restructuring recycling and demolition business 1 (NRC Kept)	0	0	63	0	0
Restructuring items, other	0	3	O	9	21
Write-down operations to be discontinued (Civil Sweden)	0	4	0	40	43
Impairment of goodwill (Norway)	0	0	150	0	0
Impairment of goodwill (Finland)	0	0	500	0	0
Adjusting items, total	0	6	709	9	ાર
EBIT adj.	40	80	-91	વેર	121
Depreciation	45	49	135	148	197
Amortisation of IT software investments	3	3	10	11	15
EBITDA adj.	88	132	51	255	332

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