Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q3 2023 Earnings Presentation
20 slides from Nrc Group Asa's earnings presentation, Nov 24, 2023
Slide 1: 3rd quarter 2023
24 November 2023 3rd quarter 2023 CEO Anders Gustafsson CFO Ole Gulsvik
Slide 2: Introduction: Anders Gustafsson, new CEO of NRC Group
INTRODUCTION Anders Gustafsson New CEO of NRC Group • more than 30 years of industrial experience • various management positions at NCC • the President and CEO at Svevia from 2017 - 2023 • Master of Science degree in Economics and an Executive MBA from the University of Stockholm • CEO of NRC Group
Slide 3: Capitalising on our unique Nordic position from 2024 to 2028
Capitalising on our unique Nordic position from 2024 to 2028 Solid foundation Great market opportunities Demand for critical infrastructure Strong sustainable profile 3
Slide 4: Sustainable growth going forward
NRC GROUP Sustainable growth going forward 1 Continued margin improvement in Norway 2 Lower, yet sustainable profitability level in Finland 3 Turnaround in Sweden is on track 4
Slide 5: High demand for infrastructure - record high tender pipeline
High demand for infrastructure - record high tender pipeline NOK 35 billion tender pipeline in Group1 Notes BNOK value, # of tenders, next 9 months • Increase by NOK 13.5 billion in tender pipeline compared to Q2 23 and an increase by 15.7 bn compared to Q3 22 35 30 • Compared to Q2 23 the tender pi
Slide 6: Significant opportunities in light rail contracts
FINLAND Significant opportunities in light rail contracts Estimated light rail market size Notes EUR million, NRC Group estimates • Tampere phase 3 design phase awarded to 500 NRC Group & YIT alliance. Decision on project execution made during fall 2024 400 • NRC Group contracted on 6 of 6 light rai
Slide 7: Committed to providing a safe and secure workplace
HEALTH AND SAFETY Committed to providing a safe and secure workplace LTI1 TRI2 6.7 19.8 2022: 4.8 2022: 15.3 SICKNESS ABSENCE SERIOUS INJURIES 3.7% 0 2022: 4.0% 2022: 2 1) LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors). 2) TRI: Frequency of inju
Slide 8: Good financials – although below last year
PROFIT & LOSS Good financials – although below last year EBIT adj. (Amounts in NOK million) Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 FY 2022 NOK million Revenue 1 844 1 988 4 932 5 075 7 030 Operating expenses -1 711 -1 849 -4 677 -4 821 -6 695 96 91 Depreciation and amortisation1 -52 -48 -159 -144 -
Slide 9: Improved profitability – lower backlog (Norway)
OPERATIONAL REVIEW NRC GROUP NORWAY NO Improved profitability – lower backlog EBIT adj. LTM Order backlog (total) NOK million NOK million 2 179 90 96 80 85 63 70 1 347 47 1 647 26 921 Coming years 426 532 Current year -38 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 2023 Q3 2022 Key Figu
Slide 10: Steady improvement – turnaround on track (Sweden)
OPERATIONAL REVIEW NRC GROUP SWEDEN SWE Steady improvement – turnaround on track EBIT adj. LTM Order backlog (total) NOK million NOK million 3 297 2 615 -30 2 852 -35 2 195 -43 -42 -52 -49 Coming years -58 419 445 Current year -72 -71 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 2023 Q3
Slide 11: Reduced result - strong pipeline (Finland)
OPERATIONAL REVIEW NRC GROUP FINLAND FIN Reduced result - strong pipeline EBIT adj. LTM Order backlog (total) NOK million NOK million 3 133 197 188 2 651 179 169 161 145 129 121 2 626 95 2 109 Coming years 543 507 Current year Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 2023 Q3 2022 Key
Slide 12: Low order intake in the quarter
BACKLOG Low order intake in the quarter Order intake & Book-to-bill LTM Order backlog (total) Order backlog comparison (short-term) -23% -7% 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 7 331 1,0 1,0 0,9 1,0 6 613 1 872
Slide 13: Net debt position in line with last year
BALANCE SHEET Net debt position in line with last year (Amounts in NOK million) 30.09.2023 30.09.2022 31.12.2022 Net interest-bearing debt ASSETS NOK million NOK -5 million Intangible assets 2 540 2 907 2 493 Right-of-use assets 528 510 564 Total other non-current assets 176 215 207 Cash and cash eq
Slide 14: Increased net working capital in the period
CASH FLOW Increased net working capital in the period Net cash flow from operations Net working capital (NWC) Change in cash in Q3 23 NOK million NOK million Operating CF NOK 12 million NOK million 238 208 160 149 110 107 102 96 69 77 63 61 12 9 -48 -35 -90 -84 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1
Slide 15: Refinancing completed after end of quarter
FINANCIAL POSITION Refinancing completed after end of quarter Gross interest-bearing debt break-down Liquidity Proforma maturity profile post refinancing NOK million NOK million NOK million 826 Additionally, NRC Group has a 1 549 1 517 Proforma new Proforma new NOK 400 million overdraft 793 bond and
Slide 16: Q3 in brief
SUMMARY Q3 in brief Financials • Revenues at NOK 1.8 million (NOK 2.0 million) • EBIT adj. of NOK 80 million (NOK 91 million) Market • The market for critical infrastructure continues to be a high priority • Tender pipeline at record-high level • Strong sustainable profile Operations • Continued imp
Slide 17: Q4 2023 results 27 February
Q4 2023 results 27 February 17
Slide 18: Appendix
Appendix
Slide 19: Impact of change from EBITA to EBIT adj. Reconciliation of EBIT adj.
Impact of change from EBITA* to EBIT adj. Reconciliation of EBIT adj. * Before other income and expenses (M&A expenses) 19 ** PPA (purchase price allocation) refers to merger related fair value adjustments
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