Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q1 2023 Earnings Presentation
22 slides from Nrc Group Asa's earnings presentation, May 24, 2023
Slide 1: 1st quarter 2023
24 May 2023 1st quarter 2023 CEO Henning Olsen CFO Ole Gulsvik
Slide 2: Key figures Q1 23: Continued growth and strong backlog
KEY FIGURES Q1 23 Continued growth and strong backlog REVENUE EBIT adj. EBIT adj. margin NOK 1.3 billion NOK -48 million -3.7% Q1 2022: NOK 1.2 billion Q1 2022: NOK -41 million Q1 2022: -3.5% ORDER INTAKE OPERATING CASH FLOW ORDER BACKLOG NOK 1.3 billion NOK -48 million NOK 8.2 billion Q1 2022: NOK
Slide 3: Health and safety
HEALTH AND SAFETY Injuries resulting in absence LTI1 TRI2 6.2 16.1 2022: 5.3 2022: 17.2 SICKNESS ABSENCE SERIOUS INJURIES 4.3% 0 2022: 4.9% 2022: 1 1) LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors). 2) TRI: Frequency of injuries with and without
Slide 4: Stable operational performance in low-season quarter
PROFIT & LOSS Stable operational performance in low-season quarter EBIT adj. (Amounts in NOK million) Q1 2023 Q1 2022 FY 2022 NOK million Revenue 1 291 1 176 7 030 Operating expenses -1 289 -1 168 -6 695 96 91 Depreciation and amortisation1 -52 -48 -198 EBIT adj. -48 -41 137 EBIT adj. margin -3,7% -
Slide 5: Continued sales growth, lower margins
KEY FINANCIAL FIGURES LAST TWELVE MONTHS (LTM) Continued sales growth, lower margins Revenue LTM EBIT adj. LTM EBIT adj. margin LTM NOK million NOK million Percent 7 146 162 7 030 156 2,5 % 6 677 137 2,3 % 134 2,2 % 130 6 387 2,0 % 6 324 6 191 110 1,8 % 1,8 % 5 957 6 004 5 934 0,8 % 45 31 0,5 % 20 0
Slide 6: Improved short- and long-term order backlog
BACKLOG Improved short- and long-term order backlog Order intake & Book-to-bill LTM Order backlog (total) Order backlog comparison (short-term) 12% 7% NOK million NOK million NOK million 1,3 1,4 2 682 1,3 1,3 1,2 2 670 8 610 8 348 1,1 1,2 8 200 7 647 7 801 7 795 2 165 1,0 1,0 7 331 2 161 0,9 1,0 6 6
Slide 7: Solid financial position - equity ratio at 46%
BALANCE SHEET Solid financial position - equity ratio at 46% (Amounts in NOK million) 31.03.2023 31.12.2022 Net Interest-bearing debt ASSETS NOK million NOK +161 million Intangible assets 2 570 2 493 Right-of-use assets 559 564 Total other non-current assets 208 207 1 178 1 107 Cash and cash equival
Slide 8: Increased working capital
CASH FLOW Increased working capital Cash flow from operations NWC – Average of last four quarters Change in cash in Q1 23 NOK million NOK million NOK million Operating CF NOK -48 million 126 238 105 102 160 149 96 72 71 69 17 34 31 -45 -48 23 15 -90 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1
Slide 9: Increased working capital impacting leverage ratio
FINANCIAL POSITION Increased working capital impacting 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 4,3 3,5 3,2 2,8 2,8 2,8 600 2,7 2,4 210 14 28 28 Q2 2023 H2 2023 H1 2024 H2 2024 Q1 21 Q2 21
Slide 10: Operational review
FINANCIAL POSITION Operational review
Slide 11: Continued improved performance (Norway)
OPERATIONAL REVIEW NRC GROUP NORWAY NO Continued improved performance EBIT adj. LTM Order backlog (total) NOK million NOK million 80 85 2 064 70 1 921 63 47 26 736 1 013 1 185 1 051 Coming years -17 Current year -42 -38 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 2023 Q1 2022 Key Figure
Slide 12: Solid tender pipeline
Solid tender pipeline NOK 10.7 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Increase by NOK 0.5 billion in tender pipeline compared to Q4 22 driven by Civil construction and Environment Rail construction Tender pipeline for Civil construction and #3 #3 #4 4.0 Environment in
Slide 13: Stable performance – strategic actions implemented (Sweden)
OPERATIONAL REVIEW NRC GROUP SWEDEN SWE Stable performance – strategic actions implemented EBIT adj. LTM Order backlog (total) NOK million NOK million 3 429 2 207 1 879 -43 -42 -52 -49 723 -58 Coming years -72 -71 -79 -79 1 222 1 156 Current year Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23
Slide 14: Discontinued Civil construction business
CLOSE-UP ON SWEDEN SWE Discontinued Civil construction business Revenue per division LTM Order backlog Notes NOK million NOK million Strategic review of Civil business completed, Civil operations in Karlstad to be discontinued • Negative profitability for several years 2 267 517 • Lack of synergies
Slide 15: New model for Swedish organisation
CLOSE-UP ON SWEDEN SWE New model for Swedish organisation Organisation Notes • Niklas Sundel appointed as COO for NRC Group Sweden and will continue as Group Head of Maintenance EVP & COO in Sweden • Strategic review of Civil business is completed. Civil business in Karlstad to be Niklas Sundel disc
Slide 16: High tender activity expected to continue
High tender activity expected to continue NOK 12.8 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Increase of NOK 0.4 billion for Rail construction and NOK 3.4 billion for Rail Maintenance compared to Q4 22. Rail construction Total increase of NOK 3.6 billion #7 #5 #5 5.0 com
Slide 17: Growth and solid order intake (Finland)
OPERATIONAL REVIEW NRC GROUP FINLAND FIN Growth and solid order intake EBIT adj. LTM Order backlog (total) NOK million NOK million 3 388 193 197 188 179 2 850 169 161 147 145 129 2 109 1 528 Coming years 1 322 1 279 Current year Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 2023 Q1 2022 K
Slide 18: Growth in tender pipeline
Growth in tender pipeline NOK 6.3 billion tender pipeline1 Notes BNOK value, # of tenders, next 9 months Increase by NOK 0.5 billion in the tender pipeline from Q4 22 and an increase of 5.1 billion compared to Q1 22. Rail and Civil construction Increase in Rail and Civil construction by #5 #12 #16 5
Slide 19: Q1 in brief
SUMMARY Q1 in brief Financials • Growth continues with revenue increase of 10% and 7% organically in local currency • EBIT adj. of NOK -48 million, a reduction from NOK -41 million last year • Order backlog remains high and improved short-term backlog • Divestment of Gravco in Q1 2023 resulted in a
Slide 20: Q2 2023 results 29 August
MI Q2 2023 results 29 August SN ee le
Slide 21: Impact of change from EBITA to EBIT adj.; Reconciliation of EBIT adj.
APPENDIX Impact of change from EBITA* to EBIT adj. (Amounts in NOK million) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 FY 2020 FY 2021 FY 2022 Revenue 1 254 1 661 1 956 1 578 1 129 1 529 1 698 1 601 1 176 1 912 1 988 1 954 1 291 6 449 5 95
Slide 22: 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