NRC Group ASA

to this presentation for the first quarter of 2025 for the NRC Group. Usually after this presentation, it will be possible to ask questions. I think the first quarter indicates that the NRC Group is on the right track. I think overall that it is a stable result. We see results improvement, especially in the Finnish business. And overall, our restructuring and restart last year has an effect. I also think it is a pleasure to see a result improvement here in Norway. There we have the big drivers, our demolition company NRC KepT, which now makes a result improvement together with a stable result from the NRC Group. And Sweden continues its positive trend in the evening with the previous year. We will report from now on this report Q1 2025 and will be reported in a clean ever and will be removed from the other model with the ever-adjusted. We will remain with the comparison figures for the ever-adjusted for a while. We have had a strong order in the quarter, but a little lower than the previous year, but at a high level. If I should mention some projects, we have two big rail jobs in Sweden, in Nyköping and Postlänken. We also have a large rail job here in Norway, Melhus Leer, which are the three big contracts that are coming out. But overall, a good order. We can mention that here in the morning, we had nothing to do with Q1, we took a big maintenance job in Finland, which is also very important for the Finnish business and so is the case for the company. The strong order in the quarter resulted in that we now have an order backlog at record level, almost 9 billion. I would like to emphasize that the restructuring of the company is now very selective, how we choose our projects, what we will do with it, where we can achieve good profitability. I see that the order in progress and the order backlog reflect that work, and we follow the strategy that we launched last year. Back to the effectiveness of the company, we will now, during the second quarter, launch an efficiency program here in Norway, similar to where we have launched in Finland. I expect the same good development in Norway as we have had in Finland. I can probably expect full effect from the program from the second half of next year, but of course an effect already in the coming year. The market is not really changing, it is still at a very high level of stability. We can still see a small timing effect here in Norway, where we might have expected some bigger job for the order backlog already during Q1 and maybe Q2, but we see that it should come out in Q3 and Q4 this year. I can also see the same movement in the defense sector, it is still a very high activity, but possibly that the jobs have a timing effect, but we expect work for the order backlog in this sector during Q3 and Q4 this year. But above all, a strong market for critical sustainable infrastructure in all three countries, Norway, Sweden and Finland. We have a negative trend in our work capital, and it is mainly driven by our big project here, which we have talked about for a while, ETM in Norway, where we are now consciously forcing the job and have done throughout the year to be able to get rid of our organization and simply be able to do this job and leave behind a quality job to a hopefully satisfied customer. The work capital is also driven by the fact that it has been a mild winter, so we have a higher activity in the project, which is cash flow-affected. Oskar will come back to this during his presentation, of course. I, along with the team, are still full of confidence that we will be able to deliver, according to the guidance we have had for the current year 2025, to reach an eternal marginal of more than two. Our long-term goal for 2028 is also to reach an eternal marginal of more than five in 2028. A picture that reflects why I think it has been a strong start of the year. If we look at the turnover, we have a turnover that is at a similar level as the previous year, but if I look at the order process in relation to turnover and in relation to our result improvement, I think this long-term reflects that we have a profitable growth in the company, which is pleasing and in line with the strategy we are driving. I would emphasize that profitability always goes before turnover. If we take numbers, we have a result that is at minus 27, which should be compared to minus 99 the previous year, so it is a significant result improvement. Compared to the previous year's number, it is at minus 43. We have seasonally demanding work, so we have a negative result in the first quarter, but the trend in the company is positive. I see again that the program and effectiveness initiatives we have taken now have an effect. Marginally, this will be minus 2.1, which will be compared to minus 7.5, given that the number of guests is minus 3.3. The strong order process in the three countries results in that we have an order backlog that is at the record level, at nearly 9 billion, 8.9, which should be compared to 8.2 next year. And in terms of the negative capital, we have a little loss on the cash flow, but Oscar will come back to that. Numbers. I will look at what the order process results for Boktobil, and we have just now a Boktobil at 1.8, and this together with the improvement in profitability clearly indicates that we are on the way to a profitable growth in the company. The order backlog, as I mentioned, is at a stable high level. Excuse me, the order backlog is at record level, and the order income is at a stable level, but somewhat the same as the previous year. I am very focused on looking at how the backlog is for the executive, and I note that we also have a positive trend there. In the order backlog, we have more projects for the improvement of the current year compared to earlier, and we also have more projects for the improvement from 2026 onwards compared to earlier years. Also a good trend. The security situation in the company is always highly priority. There should not be any employee in the NSE Group who will get hurt at work, and I see it gladly here that we start with the working-wage frequency, which indicates one sick person from work every day for one million working hours. And we have from 2022 onwards a positive development, where we have gone from 6.0, 5, 6, 4, 7, 4, 5, which simply indicates that we have safer jobs in the company. We work very hard with the question. If we look at the sick from the stock market, it is the same thing again. It is at a similar level as the previous year, but a positive trend. If we look at the benchmark, we have a good sick condition in the company. I can gladly note that so far we are hidden from serious failures in the company, and I hope that it will continue the year out. Now it is time for Oskar to go a little deeper into the financial sector. Here you go, Oskar.

Thank you, Anders. It is pleasant to be able to report clean EBIT, we think. It is, in itself, naked. It is honest, but it feels very good. We have made some technical changes in the report for this quarter. If we look at the graphs on the left, we are now graphing the quarter's turnover and quarter's EBIT. That means that we have gone away from this quarter and shown trend graphs with LTM or the last twelve months. We will return to that next quarter. We have not done that this time, because it will distort the Q1 very much and give less insight. Moreover, it has been a quarter that has been relatively winter-like, as we mentioned. It is our low season, 1.3 million euros. In terms of results, as Anders was saying, we are pleased. Minus 27 is good in relation to the season. It is good in relation to last year, it is also good in relation to 2023 levels. We wish to draw forward, as Anders said, Norway. Norway has a positive EBIT, and that is good in winter, as well as Sweden, positive EBIT. And Finland, which has a significant improvement in its operation, will return to that. So you can ask yourself this positive trend, where it comes from. Several people are driving it. Nevertheless, it will always be the case that everything starts and ends with the project work. It is done very well in the NRC projects, very positively. There is also a lot of good development work in the NRC. It often takes a little longer time to see the effects of it, but it will come. At the same time, I would also say that we are working systematically and structurally with risk control, which I have been involved in earlier. It sounds a bit vague, it is easy to say, difficult to do in practice. But the values ​​we use make us have a relatively good insight and control. In combination with the new profit recognition model, which we have talked about earlier, and a robust training language, which means that we are building ourselves a little more financially stronger, quarter by quarter. In summary, the last year's development, we will say that we have created a good foundation for us to be able to deliver on the guidance we have had since last summer. Which, financially speaking, will include these at least .0% per year. And then we start looking into 2026 already, with at least .0% in 2026. Let's look at Norway. Norway is separating a little in the first quarter with a high activity. We see that we have a turnover of 500 million a quarter. Anders was already in on it. It is very high-level driven by the ETM. So it is a high production that we get, we give ourselves quite little in terms of profitability. We produce at zero, but still high activity. We expect the ETM to be finished production during the autumn. And when it comes to the introduction of the legal steps, which we have talked about later, it will come after we are finished with the project. In terms of profitability, an EBIT of 4.4 million is, as I said, good. It is a significant difference from last year's minus 57. By and large, we should say that there was a lot of restructuring costs to be kept. But it is also okay to mention it, because kept and this restructuring were very good. It is totally transformed by the company. And kept, our company, has today a very good platform and is a company that we are very proud of. In terms of orders, it has been a good first quarter for Norway. A built-in bill or an order in production at almost two times. And then an order service, as you can see, up to the right, at 1.9 million. Last quarter, we pulled this forward as the weak point. It is still more to be done, it is still more to be done. But it is clear that it has been a good quarter and pushed us in the right direction. If we look at Sweden, the first quarter has been a little like a long quarter. It is the result of the major events. Very often in our industry it can be positive. What is very positive, we see in the mid-sign, is the profitability development. It is trending in the right direction and also there we managed to do a positive profit. At least marginally, plus one, but it is good in a first quarter. What has been far from quiet or far for Sweden has been the order service. Which has been at 2.5 times what we have produced. The result of that is that we have done well on the order service. And then has an all-time high order service at 3.4 million Euro. Gladly. Finland, I am back half a year ago. We stood here under Q3 and promised you that now Finland has reached its bottom. In terms of profitability, it has trended down over a few years. We deliver on that. We have a nice development there now. We have a Q1 for Finland where we report minus 15 million. In comparison with minus 33 in the last year. There are no adjusted elements in this, so this is direct apples and apples. Can be compared. On the order service side, the Q1 was a bit on the weak side. We felt that it was a Q1 and an important order season. With 0.9 and we are even more pleased that we could come with this message earlier today. And we saw that there should be a contract in the information area earlier today. So that is very positive. Then we move on to the capital. And as Annette said, we are not satisfied with the development here. It will not surprise us. It is as predicted, as expected. And it is as the process has reported to you. That we have a lot of production on this special ETM project. Or had a lot of production ahead of us when we accelerated. So we are gradually getting done with it. But it is clear that we are in a situation where we are in too much of a situation than the bank for the customer. So that is what is demanding. If we look at the left side, we see the capital. And the capital increases by 190 million in the quarter. In the middle, we see the operational cash flow. And it will be a very good result of the capital. It is a big driver, in the short term, always in the operational cash flow. And then it is also, as said, in the income over a long time. And in the winter season, we also have a negative income. If we look at the cash development on the right side. Then we see that we had a decrease of 243 million. But we have gone from a positive cash flow of 357 million. And down to a positive of 114 million. The change there is, as said, an operational cash flow of 150 million. And then we have the big, whole financial cash flow of 72 million. And it consists of 40 in leasing, 19 in interest and 14 in repayment of loans. We have good control in this area because we also have a 400 million cash credit. Which is not visible here. But it is clear that the conclusion that is very easy to draw when you look at the slide. Is that the capital is volatile. The consequence of this is that we have to spend a lot of time there on the capital management. As all entrepreneurs. And we do. And we have control in this area. So it is a very calm financial liquidity situation. Although, as said, I look forward to the day we get a raise on ETM. And we will have even more good buffers in our numbers. Finally, I would like to show the debt situation. The debt situation is net and interest rate debt. There we have an increase of 210 million a quarter up to 832 million. Again driven by labor capital. You see on the left side how it is built up. We have a euro loan of 156 million. We have an obligation on 400 million. And then we have a leasing debt of 390 million. And then we net with 114 million in cash to get down to 832 million. I think it is okay to just see that so much of our debt is leasing-based debt. I think it is highly relevant. Because of you who are working with models from Enterplace Value to Equity Value. Then at least one type of leasing debt is a little different from another type of debt. It is already loaded in EBIT. So it is okay to have that with you. Further in for leasing, there are 215 million of this operational leasing debt. That is, it is in our book because of the FRS 16. In the middle graph we see the stock market structure. Nothing new on it. We pay about 14 million down a quarter on our bank debt. And a little more in 2027. And then we have the obligation to fall in October 2027. On the right side we see our Yale's leverage. That is, the goal of Yale in relation to 12 months EBITDA. It went a little in the roof here after Kuto in the stock. And it would be four quarters that we went to a high level on it. As we said then. So what I can promise is that from Kuto, the drastic debt falls to a reasonable level. And as for the covenant, we are well within all the covenant requirements. And we have good control of ourselves in this area. So there is not always a covenant spread for us reasonable buffers. With that, I give the floor back to Anders. Summary of the Q1 and the start of the year.

Thank you, Kåske.