Slide 1: 2nd quarter 2023 and 1st half 2023
29 August 2023 2nd quarter 2023 and 1st half 2023 CEO Henning Olsen CFO Ole Gulsvik
Slide 2: Key figures Q2 2023
KEY FIGURES Q2 2023 Improved financial performance REVENUE EBIT adj. EBIT adj. margin NOK 1.8 billion NOK 65 million 3.6% Q2 2022: NOK 1.9 billion Q2 2022: NOK 60 million Q2 2022: 3.1% OPERATING CASH FLOW ORDER INTAKE ORDER BACKLOG NOK 107 million NOK 1.6 billion NOK 8.0 billion Q2 2022: NOK -90 mil
Slide 3: Health and safety
HEALTH AND SAFETY Committed to providing a safe and secure workplace LTI1 TRI2 7.3 17.5 2022: 4.7 2022: 16.7 SICKNESS ABSENCE SERIOUS INJURIES 3.8% 0 2022: 4.3% 2022: 1 1) LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors). 2) TRI: Frequency of inju
Slide 4: EU Taxonomy
EU TAXONOMY Results 1st half 2023 Eligible Aligned Turnover (revenue) 91% 68% 2022: 88% 2022: 69% Operational expenses (OpEx) 92% 71% 2022: 88% 2022: 69% Investments (CapEx) 91% 77% 2022: 76% 2022: 68% 4
Slide 5: Profit & loss: improved operational results
PROFIT & LOSS Improved operational results EBIT adj. (Amounts in NOK million) Q2 2023 Q2 2022 YTD Q2 2023 YTD Q2 2022 FY 2022 NOK million Revenue 1 797 1 912 3 088 3 088 7 030 Operating expenses -1 678 -1 804 -2 965 -2 972 -6 695 96 91 Depreciation and amortisation1 -55 -49 -106 -97 -198 EBIT adj. 6
Slide 6: Proforma Group figures highlights positive trend
Proforma Group figures highlights positive trend1 Revenue LTM EBIT adj. LTM EBIT adj. margin LTM NOK million NOK million Percent 6 713 2,7 % 6 652 2,7 % 6 584 175 168 2,5 % 2,5 % 164 165 2,5 % 157 2,4 % 6 237 5 971 133 5 871 1,9 % 5 611 5 598 5 620 109 0,8 % 44 0,4 % 23 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22
Slide 7: Short and long-term backlog remains solid
BACKLOG Short and long-term backlog remains solid Order intake & Book-to-bill LTM Order backlog (total) Order backlog comparison (short-term) -4% 8% NOK million NOK million NOK million 1,3 1,4 2 682 1,3 1,3 2 670 2 161 8 610 1,2 8 348 1,1 1,2 8 200 7 982* 7 647 7 801 7 795 2 165 7 331 1,0 1,0 0,9 1,
Slide 8: Solid financial position - equity ratio at 44%
BALANCE SHEET Solid financial position - equity ratio at 44% (Amounts in NOK million) 31.03.2023 31.03.2022 31.12.2022 Net interest-bearing debt ASSETS NOK million NOK -41 million Intangible assets 2 602 2 883 2 493 Right-of-use assets 560 490 564 Total other non-current assets 211 206 207 1 178 Cas
Slide 9: Strong cash flow and improved cash position
CASH FLOW Strong cash flow and improved cash position Cash flow from operations Net working capital (NWC) Change in cash in Q2 23 NOK million NOK million Operating CF NOK 107 million NOK million 238 164 160 110 149 102 107 77 96 63 61 69 9 -45 -48 -35 -90 -84 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 2
Slide 10: Reduced leverage ratio
FINANCIAL POSITION Reduced leverage ratio Net interest-bearing debt (NIBD) Bank and bond maturities1 NIBD / EBITDA adj. LTM ratio NOK million NOK million Percent Target < 2.5x 4,3 3,5 3,1 2,8 2,8 2,8 2,8 600 2,7 2,4 216 14 14 29 Q3 2023 Q4 2023 H1 2024 H2 2024 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 11: Received highest rating from S&P Global Ratings
GREEN FINANCE Recieved highest rating from S&P Global Ratings Established our first Green Finance Framework • As a part of our commitment to provide sustainable transport solutions • Highest rating, dark green, from external rating company S&P Global Ratings (formerly part of CICERO Shades of green)
Slide 12: Operational review
FINANCIAL POSITION Operational review
Slide 13: NRC Group Norway: continued profitability improvement
OPERATIONAL REVIEW NRC GROUP NORWAY NO Continued profitability improvement EBIT adj. LTM Order backlog (total) NOK million NOK million 90 2 261 80 85 70 63 1 674 47 26 1 508 761 Coming years 913 753 Current year -42 -38 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 2023 Q2 2022 Key Figure
Slide 14: Tender pipeline remains solid albeit down from last quarter
Tender pipeline remains solid albeit down from last quarter NOK 7.6 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Decrease by NOK 3.1 billion in tender pipeline compared to Q1 23 and an increase by 0.2bn compared to Q2 22 Rail construction Compared to Q1 23 the tender pipeli
Slide 15: NRC Group Sweden: positive momentum from actions initiated
OPERATIONAL REVIEW NRC GROUP SWEDEN SWE Gaining positive momentum from actions initiated EBIT adj. LTM Order backlog (total) NOK million NOK million 3 071 2 525 2 204 -43 -42 -40 1 631 -52 -49 -58 Coming years -72 -71 -79 867 894 Current year Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2
Slide 16: Proforma Sweden results at break-even
Proforma Sweden results at break-even1 Revenue LTM EBIT adj. LTM EBIT adj. margin LTM NOK million NOK million Percent 1 834 1 2 0,0 % 0,1 % 1 767 -0,1 % 1 722 -2 -1,9 % 1 480 -28 -2,4 % -30 1 392 -48 1 283 -4,0 % 1 220 1 189 1 198 -63 -65 -5,3 % -5,3 % -5,6 % -78 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 17: Tender activity in Rail construction remains high
Tender activity in Rail construction remains high NOK 7.4 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Total pipeline decrease of NOK 5.3 billion compared to Q1 23 and down 1.3 billion compared to same period last year Rail construction The reduction is related to less #7 #
Slide 18: NRC Group Finland: solid order intake in Q2
OPERATIONAL REVIEW NRC GROUP FINLAND FIN Solid order intake in Q2 EBIT adj. LTM Order backlog (total) NOK million NOK million 3 562 3 237 193 197 188 179 169 161 145 129 121 2 505 2 089 Coming years 1 148 1 057 Current year Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 2023 Q2 2022 Key Fi
Slide 19: Rail construction tender pipeline remains high
Rail construction tender pipeline remains high NOK 6.1 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Decrease by NOK 0.2 billion in the tender pipeline from Q1 23 and an increase of 4.2 billion compared to Q2 22 Rail and Civil construction Increase in Rail construction by NO
Slide 20: Q2 in brief
SUMMARY Q2 in brief Financials • Revenue decreased 6% in Q2 and down 13% organically in local currency • Improved profitability with EBIT adj. of NOK 65 million, an increase from NOK 60 million last year • Order backlog remains high Operations • Continued improved profitability in Norway • Solid ord
Slide 21: Q3 2023 results 24 November
Q3 2023 results 24 November 21
Slide 22: Appendix
Appendix
Slide 23: Impact of change from EBITA to EBIT adj.
Impact of change 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 FY 2020 FY 2021 FY 2022 Revenue 1 129 1 529 1 698 1 601 1 176 1 912 1 988 1 954 1 291 1 797 6 449 5 957 7 030 EBITA* -59 47 102 50 -37 63 94 31 -85 68 50
Slide 24: 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