Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q3 2024 Earnings Presentation
18 slides from Nrc Group Asa's earnings presentation, Nov 20, 2024
Slide 1: 3rd quarter 2024
3rd quarter 2024 CEO Anders Gustafsson CFO Åsgeir Nord
Slide 2: Summary from CEO
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
Slide 3: High demand for infrastructure – continued robust tender pipeline
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 35 Governmental support to upgrade and bui
Slide 4: Order backlog in line with 2023
Order backlog in line with 2023 Backlog Order intake & Book-to-bill LTM Order backlog (total) Order backlog execution NOK million NOK million NOK million 1,2 2 582 8 610 1,1 3 040 8 200 8 195 1,0 7 982 7 795 7 766 1,0 1,0 1,0 1,0 1,0 2 161 2 616 2 609 2 024 6 940 6 765 0,9 6 613 2 404 0,8 0,8 1 566
Slide 5: Committed to providing a safe and secure workplace
Committed to providing a safe and secure workplace Health and safety LTI1 Sickness absence Serious injuries2 6,0 6,4 6,0 4,8 % 2 2 5,6 5,6 5,1 4,2 % 3,9 % 3,8 % 3,7 % 3,5 % 0 0 0 0 2019 2020 2021 2022 2023 LTM 2019 2020 2021 2022 2023 LTM 2019 2020 2021 2022 2023 LTM Q3 Q3 Q3 2024 2024 2024 1. LTI:
Slide 6: Quarter aligned with previous expectations
Quarter aligned with previous expectations Key figures Q3 2024 Revenue EBIT adj. EBIT adj. margin NOK 2.1 billion NOK 40 million 1.9% Q3 2023: NOK 1.8 billion Q3 2023: NOK 80 million Q3 2023: 4.3% Order intake Operating cash flow Order backlog NOK 1.0 billion NOK -48 million NOK 6.8 billion Q3 2023:
Slide 7: High activity level, profitability according to expectations
High activity level, profitability according to expectations Profit & loss YTD Q3 YTD Q3 Revenue and EBIT adj. LTM (Amounts in NOK million) Q3 2024 Q3 2023 2024 2023 FY 2023 NOK million and percent Revenue 2 103 1 844 5 156 4 932 6 732 Operating expenses -2 015 -1 711 -5 104 -4 677 -6 400 170 7 030
Slide 8: Mediation in the ETM project expected to resume in January
Norway 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 2 281 2 373 115 5,0 % 1 684 2 136 4,3 % 97 2 030 3,8 % 1 866 1 859 95 3,4 % 4,0 % 1 347 80 81 75 3,0 % 1 295 Comin
Slide 9: High activity level impacted revenue, underlying margin recovery
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 10 0 2 986 2 080 2 114 2 615 -10 1 877 0,0 % 1 777 0,0 % -30 1 539 -2,5 % -2,1 % 1 468 -2,0 % -50 -4,0 % -4,
Slide 10: Good progress in change program, light rail market picking up
Finland Good progress in change program, light rail market picking up Operational review NRC Group Finland Revenue and EBIT adj. LTM Order backlog (total) NOK million and percent NOK million 7,1 % 2 811 2 842 200 188 2 651 2 753 2 640 2 582 180 7,0 % 5,0 % 5,6 % 2 388 160 2 095 145 6,0 % 141 140 4,1
Slide 11: Volatile working capital and cash flow
Volatile working capital and cash flow Cash flow and working capital Cash flow from operations Net working capital (NWC) Change in cash Q3 2024 NOK million NOK million NOK million 208 306 110 160 107 96 62 60 55 36 12 7 9 -48 -48 -126 -49 -62 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3
Slide 12: Net interest-bearing debt, maturity profile and leverage ratio
Net interest-bearing debt, maturity profile and leverage ratio Financial position Net interest-bearing debt (NIBD) Bank and bond maturities Leverage ratio: NIBD/EBITDA adj. LTM NOK million NOK million Ratio Long-term covenant target < 3.25x 7,8 5,1 400 3,1 3,0 2,8 2,8 2,8 2,6 2,3 14 58 58 72 2024 20
Slide 13: Third quarter summary
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
Slide 14: Targets for long-term strategy reaffirmed
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
Slide 15: Q4 2024 results 12 February
Q4 2024 results 12 February Note: NRC Group will report approximately two weeks earlier from Q4 2024
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of EBIT adj.
Reconciliation of EBIT adj. (Amounts in NOK million) 32024 032023 YTD2024 YTD2023 FY 2023 Operating profit/loss (EBIT) re) 88 105 Adjusting items Gain from sale of Gravco 0 -40 ~40 M&A expenses a 0) 7 Restructuring recycling and demolition business * ® @ ® (NRC Kept) Restructuring items, other 3 9 2
Slide 18: Disclaimer
Disclaimer This draft presentation (hereinafter referred to as the “Presentation”) has been Should one or more of these risks or uncertainties materialise, or should prepared exclusively for information purposes and does not constitute an offer underlying assumption prove incorrect, actual results m