Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q2 2021 Earnings Presentation
28 slides from Nrc Group Asa's earnings presentation, Aug 18, 2021
Slide 1: Q2 & 1st half 2021 result presentation
Image TBU Q2 & 1st half 2021 result presentation Henning Olsen and Dag Fladby 19 August 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 Q2
Highlights Q2 Revenue • NOK 1.5 billion (NOK 1.7 billion Q2 2020) EBITA* • NOK 47 million (NOK 27 million Q2 2020) Order backlog • NOK 6.7 billion (NOK 7.5 billion Q2 2020) Order intake • NOK 2.2 billion (NOK 1.3 billion Q2 2020) * Before other income and expenses (M&A expenses) 3
Slide 4: Highlights Q2 – Major wins
Highlights Q2 – Major wins FIN: Frame contract* FIN: Joensuu railway SWE: Sundsvall-Birsta- NOR: Drammen Quay (material) yard Timrå and Tunadal NOK 2,000 million NOK 420 million NOK 95 million NOK 213 million * Not included in the order book 4
Slide 5: Operations and business during Covid-19
Image TBU 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 • Main
Slide 6: Health & safety first
Health & safety first 7.8 20.5 LTI-1* LTI-2** Q2 2020: 4.1 Q2 2020: 11.3 3.9% 0 SICKNESS ABSENCE SERIOUS INJURIES Q2 2020: 4.7% Q2 2020: 0 *LTI-1: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors). **LTI-2: lost time injuries in total per million man-ho
Slide 7: Sustainability at the core of our strategy
Sustainability at the core of our strategy OUR TARGETS ACIVITIES DURING Q2 SUSTAINABILITY TRAINING FOR ALL EMPLOYEES 30% reduction Net-zero in emissions emissions by across OPERATIONAL IMPROVEMENTS 2050 at the countries by latest end of 2024 COMPREHENSIVE ANALYSIS - EU TAXONOMY
Slide 8: Q2 key figures – Profit & loss
Q2 key figures – Profit & loss (Amounts in NOK million) Q2 2021 Q2 2020 YTD 2021 YTD 2020 FY 2020 Revenue 1 529 1 661 2 658 2 915 6 449 • Revenues down 8% from Q220 Operating expenses 1 430 1 580 2 569 2 835 6 185 • Adjusted for currency ~ -3% EBITDA* 99 81 89 80 264 Other income and expenses (M&A e
Slide 9: Q2 key figures – Balance sheet
Q2 key figures – Balance sheet (Amounts in NOK million) 30.06.2021 30.06.2020 31.12.2020 ASSETS • Cash: NOK 441 million Intangible assets 2 917 2 989 3 010 Right-of-use assets 527 578 588 Total other non-current assets 216 319 255 • Interest-bearing debt reduced by NOK 37 million to NOK 1,620 millio
Slide 10: Q2 key figures - Cash flow
Q2 key figures - Cash flow Cashflow from operation* per quarter (NOK million) Q2 2021 Q2 2020 YTD 2021 YTD 2020 FY 2020 (NOK million) Profit/loss before tax 5 -6 -90 -105 -94 129 Net cash flow from operating activities -45 31 -29 87 316 110 Net cash flow from investing activities 33 -30 46 -38 -150
Slide 11: Strong order intake Q2 2021
Strong order intake Q2 2021 Order book* Order intake (NOK million) (NOK million) 7 526 2 166 6 835 6 693 6 475 • Order book NOK 6,693 million 5 961 921 • Framework agreement with FTIA in Finland of NOK 2,000 1 393 1 319 million not included in the orderbook 8060 7391 7566 7237 7152 1 200 6495 6326 6
Slide 12: Financial position as per 30 June
Financial position as per 30 June Net interest-bearing debt Bank and bond maturities (NOK million) (NOK million) • Cash position of NOK 441 million • Undrawn Revolver Credit Facility of NOK 200 million 600 • Net interest bearing debt of NOK 1,179 million 148 148 139 74 2021 2022 2023 2024 Bank loan
Slide 13: EU Taxonomy – Eligible and aligned activities
EU Taxonomy – Eligible and aligned activities Does the activity substantially Do screening criteria exist for the Does the activity meet DNSH’ activity? YES contribute to climate change mitigation and/or adaptation? YES requirements? YES Does the activity comply with the Minimum Social Safeguards? Y
Slide 14: Estimated results Requirements going forward
Estimated results Requirements going forward Not eligible 15% • 85-95% of economic activities are eligible* (based on Eligible 85% share of expected revenue for 2021) • Estimate that 65-75% of revenue will be aligned** Requirements going forward • From 1 January 2022 (Sustainability Report 2021) Est
Slide 15: Operational review
Operational review Ml
Slide 16: NRC Group Finland – Strong profitability
NRC Group Finland – Strong profitability Order backlog (NOK million) Q2 2021 Q2 2020 (NOK million) Revenue 695 700 EBITA* 65 19 3 038 EBITA* margin 9.4% 2.7% 2 783 Order intake 1,287 557 1 776 2 133 Coming years • Organic growth** +8% • Solid performance in Rail Construction • Improved results in Ma
Slide 17: NRC Group Finland – Solid tender pipeline
NRC Group Finland – Solid tender pipeline NOK 2.8 billion tender pipeline1 NOK million value, # of tenders, next 9 months • Decreased with NOK 1.1 Bn from Q121 pipeline, mainly from maintenance projects Tender pipeline • NOK 1.0 Bn increase from same period last year mainly related to rail construct
Slide 18: NRC Group Sweden – Low revenue impacting profitability
NRC Group Sweden – Low revenue impacting profitability (NOK million) Order backlog Q2 2021 Q2 2020 (NOK million) Revenue 400 487 EBITA* -12 -13 EBITA* margin -3.1% -2.7% 2 554 Order intake 288 305 1 881 1 827 Coming 1 178 years Current • Organic growth** -15% 703 727 year • Low hit rate the last 12
Slide 19: NRC Group Sweden – Continued high tender activity expected
NRC Group Sweden – Continued high tender activity expected NOK 9.0 billion tender pipeline1 NOK million value, # of tenders, next 9 months 7 000 • In line with Q121 pipeline 5 800 6 000 • NOK 0.8 Bn lower than last year at same time, mainly explained with Tender pipeline postponed projects for Stors
Slide 20: NRC Group Norway – Continued focus on restoring margins
NRC Group Norway – Continued focus on restoring margins Order backlog (NOK million) Q2 2021 Q2 2020 (NOK million) Revenue 433 476 2 030 EBITA* 2 27 1 934 EBITA* margin 0.5% 5.7% Order intake 591 457 1 190 Coming years 1 172 Current year 840 762 • Organic growth -9% • Continued improvement in Rail Co
Slide 21: NRC Group Norway - Solid tender pipeline
NRC Group Norway - Solid tender pipeline NOK 8.3 billion tender pipeline1 NOK million value, # of tenders, next 9 months 6 000 5 150 • Decrease of NOK 1.0 Bn in tender pipeline vs Q121 and an #5 Strong pipeline increase of NOK 0.7 Bn vs last year 5 000 • Maintenance contract included in Rail constru
Slide 22: Summary
Summary • Improved results Financials • Strong order intake • Focus on core processes in tendering and project execution Operations continues in order to restore profitability Outlook • 2021 EBITA*margin expected to be 1.75-2.5% • Continued strong outlook for investments in sustainable infrastructur
Slide 23: Appendix
Image TBU Appendix
Slide 24: Order book and book to bill
Order book and book to bill Order book execution by country Book-to-bill ratio NOK million Period order intake/revenue 2,5 Book to bill Book to bill LTM/ LTM Revenue 3 000 2 620 2 549 2 500 2,0 1 006 1 086 2 000 1,5 1 524 1 500 0,9 1,0 703 690 0,8 830 1 000 348 0,5 500 840 704 486 0 0,0 2021 2022+ 2
Slide 25: Segments – key figures quarterly development
Segments – key figures quarterly development Reported** 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 2021 Q2 2021 Total revenue
Slide 26: 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 27: 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 28: 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 28,4 Budget confirmed NOK +1.7 Bn vs NTP level for 2021 26,5 26,6 10,6 9,9 21,9 • Increase of NOK +4.5