Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q4 2023 Earnings Presentation
20 slides from Nrc Group Asa's earnings presentation, Feb 27, 2024
Slide 1: 4th quarter 2023
27 February 2024 4th quarter 2023 CEO Anders Gustafsson CFO Ole Gulsvik
Slide 2: Improved operational performance in many areas
NRC GROUP Improved operational performance in many areas 1 Results overall in line with 2022 2 Financial position solid, backed up by robust cashflow 3 New strategic wins across our markets 2
Slide 3: New wins setting a positive tone for the new year
Going into 2024 New wins setting a positive tone for the new year RAIL: NORWAY CATENARY: SWEDEN RAIL: FINLAND Rehabilitation and upgrading of the Catenary work on the railway connection Rail construction, groundworks, catenary infrastructure on the railway between Alingsås and Olskroken for The foun
Slide 4: Our main markets
NRC Group Our main markets Good results and strong order intake in Norway Successful transformation ongoing in Sweden Solid platform for improvement in Finland 4
Slide 5: High demand for infrastructure – strong tender pipeline
High demand for infrastructure – strong tender pipeline NOK 34 billion tender pipeline in Group1 Notes BNOK value, # of tenders, next 9 months NOK +9 billion • Growing tender pipeline across all countries 35 34 • Solid increase from 2022 30 25 • Foundation for future profitable growth 21 19 19 for N
Slide 6: Unique position in our market
EU TAXONOMY Unique position in our market Eligible Aligned Turnover (revenue) 98% 72% 2022: 87% 2022: 67% Operational expenses (OpEx) 99% 74% 2022: 87% 2022: 67% Investments (CapEx) 98% 76% 2022: 81% 2022: 73% 6
Slide 7: Committed to providing a safe and secure workplace
HEALTH AND SAFETY Committed to providing a safe and secure workplace LTI1 SICKNESS ABSENCE SERIOUS INJURIES2 6,4 4,8 % 2 2 6,0 6,0 4,2 % 3,9 % 3,8 % 3,5 % 5,6 5,6 0 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1) LTI: Injuries resulting in absence at least one full
Slide 8: Operating profit in line with last year
PROFIT & LOSS Operating profit in line with last year Revenue and EBIT adj. (Amounts in NOK million) Q4 2023 Q4 2022 FY 2023 FY 2022 NOK million and percent Revenue 1 800 1 954 6 732 7 030 160 2,5 % Operating expenses -1 723 -1 874 -6 400 -6 695 7 030 6 732 137 Depreciation and amortisation1 -53 -53
Slide 9: Continued improvement
OPERATIONAL REVIEW NRC GROUP NORWAY NO Continued improvement Revenue and EBIT adj. Order backlog (total) NOK million and percent NOK million 2 281 2 373 115 5,0 % 2 136 4,3 % 97 3,8 % 2 013 1 866 1 859 95 3,4 % 4,0 % 80 81 75 3,0 % 1 523 708 55 1,4 % 2,0 % 501 Coming years 35 26 1,0 % Next year 15 0
Slide 10: Successful ongoing transformation
OPERATIONAL REVIEW NRC GROUP SWEDEN SWE Successful ongoing transformation Revenue and EBIT adj. Order backlog (total) NOK million and percent NOK million 10 0 0,0 % 3 160 0,0 % 2 933 2 080 -10 -1,0 % 1 777 1 877 -2,5 % -2,0 % -30 1 539 1 468 -4,0 % -3,0 % -50 -4,8 % -4,0 % 1 542 1 971 -70 -52 -5,0 %
Slide 11: Challenging year – solid platform for improvement
OPERATIONAL REVIEW NRC GROUP FINLAND FIN Challenging year – solid platform for improvement Revenue and EBIT adj. Order backlog (total) NOK million and percent 7,1 % NOK million 2 811 200 188 10,0 % 2 622 2 753 5,6 % 2 470 2 640 2 582 180 5,0 % 160 2 388 145 5,0 % 141 140 4,1 % 1 109 1 376 120 2,8 %
Slide 12: Strong order intake – continued into Q1
BACKLOG Strong order intake – continued into Q1 Order intake & Book-to-bill LTM Order backlog (total) Order backlog for delivery next twelve months 1% NOK million NOK million NOK million 1,4 Indicative Q1-24 300 0 order backlog* 1,3 1,3 1,3 2 670 8 610 1,2 8 348 8 200 7 801 7 982 250 0 1,1 7 795 1,0
Slide 13: Net debt and leverage ratio reduced
BALANCE SHEET Net debt and leverage ratio reduced Net interest-bearing debt Leverage ratio (NIBD/EBITDA adj. LTM) NOK million Target < 2.5x 1 633 NOK -189 million 525 1 158 950 891 573 761 528 6,1 492 1 108 503 4,4 585 2,7 2,8 2,3 399 422 258 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 NIBD (e
Slide 14: Record-high cash flow from operations
CASH FLOW Record-high cash flow from operations Cash flow from operations Net working capital (NWC) Change in cash in 2023 NOK million NOK million NOK million Operating CF NOK 376 million 88 78 376 358 312 235 9 -35 -62 -38 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 14
Slide 15: 2023 in brief
SUMMARY 2023 in brief Financials • Full-year revenue of NOK 6.7 billion (NOK 7.0 billion) • Operating margin in 2023 of 1.8% (2.0%) • Record-high cashflow from operations Market • Solid order intake and tender pipeline still at record-high level • Strong sustainable profile Operations • Continued go
Slide 16: Q1 2024 results 23 May
MI Q1 2024 results 23 May SN ee le
Slide 17: Appendix
Appendix
Slide 18: Impact of change from EBITA to EBIT adj.
Impact of change from EBITA* to EBIT adj. Impact of change in KPI from EBITA* to EBIT adj. (Amounts in NOK million) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2020 FY 2021 FY 2022 FY 2023 Revenue 1 129 1 529 1 698 1 601 1 176 1 912 1 988 1 954
Slide 19: Financial position and cash flow
Financial position and cash flow (Amounts in NOK million) 31.12.2023 31.12.2022 (Amounts in NOK million) Q4 2023 Q4 2022 FY 2023 FY 2022 ASSETS Intangible assets 2 557 2 493 Profit/loss before tax 6 -353 45 -313 Right-of-use assets 542 564 Total other non-current assets 171 207 Net cash flow from op
Slide 20: 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 other