Slide 1: Q1 2021 result presentation
Q1 2021 result presentation CEO Henning Olsen and CFO Dag Fladby 12 May 2021
Slide 2: Disclaimer
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 o
Slide 3: Highlights Q1 2021
Highlights Q1 2021 Revenue EBITA* Order backlog NOK million NOK million NOK million Revenue • NOK 1.1 billion 8 048 1 254 EBITA* • NOK -59 million 1 129 5 961 • Order intake of NOK 0.9 billion Orders • Order backlog of NOK 6.0 billion • Book to Bill: LTM 0.8 • Operating cash flow of NOK 17 million L
Slide 4: Operations and business during Covid-19
Operations and business during Covid-19 • Keep employees safe and minimize impact on operations Main priorities • Compliant with public restrictions and recommendations • Monitor potential effects on the industry and NRC Group’s business • Limited impact on project execution to date • Maintenance an
Slide 5: Health & safety first
Health & safety first 9.6 9.6 20.2 20.2 LTI-1* LTI-2** LTI-1* Q1 2020:1.8 LTI-2** Q1 2020: 6.7 Q1 2020:1.8 Q1 2020: 6.7 4.1% 4.1% 00 SICKNESS ABSENCE SERIOUS INJURIES SICKNESS Q1 2020: ABSENCE 5.7 SERIOUS Q1 2020:INJURIES 0 Q1 2020: 5.7 Q1 2020: 0 *LTI-1: Injuries resulting in absence at least one f
Slide 6: Sustainable work in NRC Group
Sustainable work in NRC Group • Sustainability report launched in April 2021, prepared in accordance with the Global Reporting Initiative (GRI) Standards • Monitoring the EU’s work on Sustainable Finance and the EU Taxonomy regulation • Defining GHG emission reduction targets and energy intensity •
Slide 7: Q1 key figures – profit & loss
Q1 key figures – profit & loss • Revenue of NOK 1,129 million • EBITA* of NOK -59 million - Continued good performance in Finland - Lower revenue in Sweden affects the profitability - Norway in line with last year * Before other income and expenses (M&A expenses) 7
Slide 8: Q1 key figures – balance sheet
Q1 key figures – balance sheet • Goodwill and other intangible assets: NOK 2,890 million (Amounts in NOK million) ASSETS 31.03.2021 31.03.2020 31.12.2020 Intangible assets 2 890 3 068 3 010 • Cash: NOK 551 million Right-of-use assets 541 539 588 Total other non-current assets 217 335 255 • Interest-
Slide 9: Q1 key figures – cash flow
Q1 key figures – cash flow • Operating cash flow of NOK 17 million. (Amounts in NOK million) Q1 2021 Q1 2020 FY 2020 - Q120 included an extraordinary sale of inventory of approximately NOK 110 million Profit/loss before tax -95 -99 -94 Net cash flow from operating activities - continuing 17 43 312 •
Slide 10: Robust financial position as per 31 March
Robust financial position as per 31 March Interest-bearing debt Bank and bond maturities NOK million NOK million • Cash position of NOK 551 million • Undrawn Revolver Credit Facility of NOK 200 million • Net interest bearing debt of NOK 1,107 million 600 109 146 146 136 2021 2022 2023 2024 Bank loan
Slide 11: Operational review
Operational review MI
Slide 12: NRC Group Finland – Good performance
NRC Group Finland – Good performance Revenue EBITA* Order backlog • Strong growth in Light rail NOK million NOK million NOK million -16% Organic • Q120 included an extraordinary sale of inventory of growth** approximately NOK 110 million • Lower activity in Maintenance and in Rail Construction 820 3
Slide 13: NRC Group Finland – Solid tender pipeline
NRC Group Finland – Solid tender pipeline NOK 3.9 billion tender pipeline1 NOK million value, # of tenders, next 9 months • Decreased with NOK 1.2 Bn from Q420 pipeline, mainly Rail construction projects Tender pipeline • NOK 2.4 Bn increase from same period last year mainly related to 3 000 rail co
Slide 14: NRC Group Sweden – Low revenue impacting profitability
NRC Group Sweden – Low revenue impacting profitability • Low revenue due to low order intake during last year Revenue EBITA* Order backlog -19% Organic • Mild winter in Q120 with beneficial working conditions NOK million NOK million NOK million growth** 2 738 600 • Low revenue reduces the profitabil
Slide 15: NRC Group Sweden – Strong tender pipeline
NRC Group Sweden – Strong tender pipeline NOK 9.2 billion tender pipeline1 (NOK million value, # of tenders, next 9 months) 6 000 • Decrease with NOK 0.8 Bn from Q420 pipeline, mainly rail construction projects 5 000 4 800 • NOK 0.1 Bn higher than last year at same time, mainly explained with 4 400
Slide 16: NRC Group Norway – In line with last year
NRC Group Norway – In line with last year Revenue EBITA* Order backlog NOK million NOK million NOK million • Growth in Rail Construction +4% organic • Lower revenue in Civil due to low order intake during last year 1 953 growth 700 1 872 • Flat revenue in Environment 600 1 031 949 • 500 Improved pro
Slide 17: NRC Group Norway - Strong tender pipeline
NRC Group Norway - Strong tender pipeline NOK 9.2 billion tender pipeline1 (NOK million value, # of tenders, next 9 months) • Increase of NOK 3.1 Bn in tender pipeline vs Q420 and NOK 2.0 Bn vs last year 7 000 #8 • Increase mainly in Rail construction Strong pipeline • Maintenance contract included
Slide 18: Summary
Summary • Revenues NOK 1.1 billion Financials • EBITA* NOK -59 million • Cash position of NOK 551 million • Focus on core processes in tendering and project execution Operations continues in order to restore profitability • 2021 EBITA*margin expected to be 1.75-2.5% • Continued strong outlook for in
Slide 19: Appendix
Appendix MI
Slide 20: Segments – key figures quarterly development
Segments – key figures quarterly development Reported** Reported** Reported Reported*** Reported Reported Reported Reported Reported Norway operations (NOK million) FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2020 Total revenue 771 1 598 2 281 1
Slide 21: Orderbook and order intake Q1 2021
Orderbook and order intake Q1 2021 Order book* Order intake (NOK million) (NOK million) • Order book NOK 5,961 million 572 • Order intake of NOK 860 million • Announced orders NOK 386 million • Unannounced orders NOK 474 million includes; - Reversal of MA5 maintenance contract 529 of approximately N
Slide 22: Orderbook and book to bill
Orderbook and book to bill Order book execution by country Book-to-bill ratio NOK million Period order intake/revenue 3,5 Book to bill Book to bill LTM/ LTM Revenue 3 500 2 935 3,0 3 000 2,5 2 500 1 117 1 954 2,0 2 000 726 1,5 1 500 895 1 073 1 000 1,0 0,8 705 306 341 0,5 500 923 523 426 0 0,0 2021
Slide 23: Finland – Confirmed continued high level of investment in 2021
Finland – Confirmed continued high level of investment in 2021 Rail investments and maintenance spending1 EUR million, 2019-24 976 963 920 890 879 208 • Confirmed investments and spending at EURO 0.92 Bn 211 326 309 Budget confirmed • Investments and renewals at high levels 247 597 119 420 453 370 3
Slide 24: Sweden – High investment level in line with expectations
Sweden – High investment level in line with expectations Rail investments and maintenance spending1 SEK billion, 2019-24 • SEK 30.4 Bn for 2021, +7% higher than estimated in the NTP 30,4 30,0 Budget confirmed • The high investment level is expected to continue also in 28,4 28,5 2022 27,4 22,2 Rail i
Slide 25: Norway - Investment growth in 2021 mainly related to on-going projects
Norway - Investment growth in 2021 mainly related to on-going projects Rail investments and maintenance spending1 NOK billion, 2019-24 29,5 • NOK 26.5 bn for 2021, +20% from 2020 and approximately NOK 28,4 Budget confirmed +1.7 Bn vs NTP level for 2021 26,5 26,6 10,6 9,9 21,9 • Increase of NOK +4.5