Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q2 2024 Earnings Presentation
19 slides from Nrc Group Asa's earnings presentation, Aug 29, 2024
Slide 1: 2nd quarter 2024
2nd quarter 2024 CEO Anders Gustafsson CFO Åsgeir Nord
Slide 2: Summary first half 2024
Summary first half 2024 Solid governmental support to upgrade and build sustainable infrastructure Market outlook is strong with tender pipeline at high levels Strong order intake first half Comprehensive analysis and decisive actions taken Financial performance in second quarter is weak with downwa
Slide 3: Downward adjustments of NOK 160 million in second quarter
Downward adjustments of NOK 160 million in second quarter Project Reason Effect Actions ETM (Electrification of Trønder Major changes in scope, NOK 125 mill • Process expected to continue in second and Meråkerbanen – NOR) unsuccessful mediation with half of 2024 client (Bane NOR) in June • Extensive
Slide 4: 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 4,2 % 3,9 % 3,8 % 3,8 % 4,6 3,5 % 0 0 0 0 2019 2020 2021 2022 2023 LTM 2019 2020 2021 2022 2023 LTM 2019 2020 2021 2022 2023 LTM Q2 Q2 Q2 2024 2024 2024 1. LTI:
Slide 5: Results dominated by the downward adjustments
Results dominated by the downward adjustments Key figures Q2 2024 Revenue EBIT adj. EBIT adj. margin NOK 1.7 billion NOK -88 million -5.1% Q2 2023: NOK 1.8 billion Q2 2023: NOK 65 million Q2 2023: 3.6% Order intake Operating cash flow Order backlog NOK 1.3 billion NOK 7 million NOK 7.8 billion Q2 20
Slide 6: Significant effects of downward adjustments – and impairment of GW
Significant effects of downward adjustments – and impairment of GW Profit & loss YTD Q2 YTD Q2 Revenue and EBIT adj. LTM (Amounts in NOK million) Q2 2024 Q2 2023 FY 2023 2024 2023 NOK million and percent Revenue 1 747 1 797 3 053 3 088 6 732 160 2,5 % Operating expenses -1 788 -1 678 -3 090 -2 965 -
Slide 7: Pending clarification of substantial change orders in one project
Norway Pending clarification of substantial change orders in one project 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 % 2 136 1 972 2 061 4,3 % 97 3,8 % 1 866 1 859 95 3,4 % 4,0 % 1 674 80 81 75 3,0 % 761
Slide 8: Successful transformation ongoing – temporary set-back due to ETM
Sweden Successful transformation ongoing – temporary set-back due to ETM Operational review NRC Group Sweden Revenue and EBIT adj. LTM Order backlog (total) NOK million and percent NOK million 3 316 10 0 3 071 2 080 -10 1 877 1 859 0,0 % 1 777 0,0 % -30 1 539 1 468 -2,5 % -2,7 % -2,0 % -50 2 519 -4,
Slide 9: Ongoing tender and improvement processes
Finland Ongoing tender and improvement processes Operational review NRC Group Finland Revenue and EBIT adj. LTM Order backlog (total) NOK million and percent NOK million 7,1 % 3 237 2 811 2 753 2 806 200 188 2 640 2 582 180 7,0 % 5,0 % 5,6 % 2 478 2 388 160 141 145 6,0 % 140 4,1 % 5,0 % 2 089 120 98
Slide 10: Working capital reduced following significant downward adjustments
Working capital reduced following significant downward adjustments Cash flow and working capital Cash flow from operations Net working capital (NWC) Change in cash Q2 2024 NOK million NOK million NOK million Operating CF NOK 7 million 306 208 160 110 102 107 96 -2 62 60 55 12 7 9 -48 -90 -126 -49 -6
Slide 11: 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 Target < 2.5x 5,1 400 3,1 3,0 2,8 2,8 2,8 2,8 2,6 2,3 56 56 70 28 2024 2025 2026 2027 Q2 22 Q
Slide 12: The order backlog gives some downward pressure on short term EBIT
The order backlog gives some downward pressure on short term EBIT Backlog Order intake & Book-to-bill LTM Order backlog (total) Order backlog execution NOK million NOK million NOK million 1,4 2 670 2 582 8 610 1,3 8 348 1,2 8 200 8 195 1,1 7 982 2 928 7 795 7 766 2 839 2 161 2 603 2 024 1,0 6 940 2
Slide 13: High demand for infrastructure – continued robust tender pipeline
High demand for infrastructure – continued robust tender pipeline NOK 29 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 14: Second quarter summary
Second quarter Summary Financials Revenue of NOK 1,747 million (NOK 1,797 million) EBIT adj. margin of -5.1% (3.6%), result affected by downward adjustments of NOK 160 million Strengthen liquidity position with potential share issue to raise capital Operations Strengthen management team especially i
Slide 15: Targets for long-term strategy reaffirmed
Guiding Targets for long-term strategy reaffirmed 2024 targets 2025 targets 2028 targets NOK ~6.5 billion NOK ~7 billion >NOK 10 billion Revenue Revenue Revenue -0.9 to -1.5% >2% >5% EBIT adj. margin EBIT adj. margin EBIT adj. margin Linear improvement towards 2028
Slide 16: Q3 2024 results 20 November
Q3 2024 results 20 November
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of EBIT adj.
Reconciliation of EBIT adj. (Amounts in NOK million) 022024 22023 YTD2024 —- YTD 2023 FY 2023 Operating profit/loss (EBIT) 64 14 105 Adjusting items Gain from sale of Graveo 0 -40 -40 M&A expenses 0 1 7 Restructuring recycling and demolition business @ @ 0 (NRC Kept) Restructuring items, other L 6 a
Slide 19: 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