NRC Group ASA

Good morning and welcome to this presentation for the second quarter and the first half of the year 2026 for NRC Group. As usual, after this presentation, there is the opportunity to ask questions. We are just halfway into our strategy period until 2028. The goal so far has been to create a stable, profitable, sustainable group. and I think we are moving in the right direction. And then I look mainly at three key figures. I look at the margin improvement on the rolling 12, where we have a steady positive trend. I of course look at the margin in the quarter and the corresponding cash flow. If we look at the isolated quarter, we reach a result of 61 million, with a margin of 3.6%. Unfortunately, we have been forced to take a one-off cost in Sweden of 71 million from a legal dispute that was filed in 2018. It is no secret that we would have liked to have succeeded in that dispute, but now it is as it is and we have taken the cost and we move on. I think the underlying improvement in profitability is in all three business areas, Norway, Sweden and Finland. And we reach a margin of about 20% in our new business area machine. Special operation with KEPT and Gunnar Knutsen is in line with the plan. In our strategy period, we are very selective in what we include in our portfolio. We want to have projects that suit our company, suit our organization and lead to our long-term profitability goals of reaching more than 5%. It is tough competition and there is obviously cheap turnover to buy. We are not going that way, we are prioritizing long-term profitability. As I mentioned, it is very positive that the cash flow is rising. We have doubled the cash flow in the quarter to 180 million. And it is at the same time the same thing. We have had this under focus for a long time and therefore it is delightful that we see that we get the effect of this hard work. Vår synpunkt är att vi har lämnat över ett kvalitativt projekt i ett hjem till vår kund Bane Nord och efterlevt de krav som är ställda och vi har således skickat slutnotan. Slutnotan kommunicerar vi här idag och den är på 566 miljoner. Vi kommer att påbörja en förhandling om det här slutkravet under det tredje kvartalet. Men som vi har kommunicerat tidigare, om vi inte når framgång så kan inte vi fortsätta vara bank till Banenor utan då kommer vi söka rättslig instans för att lösa den här knuten. Den strategiska översynen av Gunnar Knutsen pågår enligt plan. Resultatet av den här översynen kommer vi tillbaka till under det tredje eller fjärde kvartalet. Jag tycker fortsatt på den överliggande nivån att vi har en solid, stark marknad för kritisk infrastruktur. However, we see a delay, especially here in Norway, where we had expected a larger supply of larger rail jobs from Banenor. We have in fact only had two larger jobs to fire here during the first half year. Therefore, we will control our strategy in Norway. where we look more at the civil side, especially in water and concrete-intensive projects, like the parking lot that we won here during the first half of the year. A very important part during the second quarter and for NRC Group is to ensure the second wave of light-trade projects in Finland, and it is therefore a joy that we won both projects. We won both Helsinki and Turku. and we hope for a quick start in these projects. We do not have any improvement in these two new contracts in the second quarter. I will conclude the summary with what I started with. I think that the key figures we are looking at indicate that we are moving in the right direction towards our long-term goal of reaching more than 10% and more than 5%. If we look at the isolated figures, I will again raise the margin in the quarter, which is 3.6%, compared to 3.4% in the previous year, and the corresponding cash flow, which is 180 million, which is more than doubled in the previous year. We have an order entry that is in line with the previous year, and a stable order entry and a backlog. Jag hade förväntat mig avslut på några projekt här i det andra kvartalet som vi fortfarande håller på att förhandla om. Jag hoppas att vi har framgång och kan komma med några positiva nyheter i det här tredje kvartalet. Men det är vissa saker som fortfarande inte är avgjorda. If I look at the backlog, what is in the backlog is only the first part that is contracted. If we look at what the entire second wave of light rail in Finland looks like, you can see that for execution in 2027 and forward that we have a considerable improvement there than before. And it's the same thing in the backlog. We don't have the entire light rail project in the backlog. Som jag förväntat mig, eller som jag har kommunicerat tidigare, så önskar vi en boktogbild på mer än ett. Men då tycker jag ändå att vi har en stabil orderingång på två miljarder och då är det fortfarande saker som vi håller på att förhandla om som jag hoppas att vi når framgång i här under det tredje och fjärde kvartalet. The security situation in the company is not good. We see an increased frequency of short-term injuries. Therefore, we go back to our routines and look at what we can do better to ensure the absolute best working environment for our organization. We have a zero goal, so we make a change. The sick situation in the company is on a stable level compared to Benchmark. Gledjande nog så er vi förskånade från allvarliga olyckor sedan lite drygt två år tillbaka. Det är väldigt viktigt. Med den här inledningen så lämnar jag över till Åsgeir.

Fint. Tack Anders. Väl overstått sommer till det rade. Vi tänker att Kuto är ett solidt kvartal. Vi føler att i kvartalet så leverer vi på de allra fleste KPI'er. It is also cool that from the inside of the company I and my colleagues observe that the quality in NSE is increasing. We are a learning organization. It is also nice to see that improvement work bears fruit. And today we are a much stronger corporation than we were before. In terms of profitability, Anders was in on it. In the quarter EBIT at 61 million, or 3.6%, against 60 million and 3.4% last year. Again, we have to mention this one-time effect, 71 million kroner, we will of course get back to them. It is, as I said, 71 million kroner. It is okay not to start doing everything for so-called creative calculations, that does not mean that we pace at 132 million kroner. It doesn't mean that, but it definitely shows what we have talked about earlier, which is that we have robust accounting practices in the company. And even to absorb this in the course of the quarter, we feel that we are a witness to that. If we look at the turnover, it is 1,704 against 1,763 in the previous year. Let's look at Norway. Norway had a turnover of 368 million kroner compared to 379 million kroner last year. The EBITDA is at 39 million kroner compared to 5 million kroner last year. Norway's second quarter has been characterized by a lot of good business, good project conclusions, and we have provided a positive project adjustment on the ETM. As far as the ETM is concerned, it has been a nice last phase, especially three things. The correction of what is called the punch-fail, which is always done after large projects, has gone very well. We have had good change work at the end, and for ETM there have been changes all the way from the first day to the last day. And last but not least, we have delivered this claim, or our final statement, which Anders was in on, for 566 million kroner. And we are now starting a process with Banen Nord, which Anders was in on, and we will see where this leads us. In the books, it is as it has been before, the books are, as it should be, reasonably balanced according to our view. This means that yes, there is upside potential, and there is downside potential. When it comes to liquidity, the main thing is that liquidity is only positive to the right. So at a time of upheaval, we are provided with essential liquidity. The order in Norway is 97 million, which is not something we are trying to hide, because it is a weak number. It is against 652 last year, and with that we have an order reserve of 900 million. That is the weakest point in the report, and we have pulled it forward several times over time. There is a full focus on this. Anders was talking about what I call the turning point. It becomes too binary, too risky to focus on the strong weighting towards rail that has been done. Now there are things that indicate that there will be more projects, but still we have to turn more towards civil in Norway. We have implemented Pwned Position, which was the name of the improvement project in Norway. It has been a tough process for the organization, and of course for everyone who has been involved in this. The postage base has been significantly reduced, and now matches the so-called income line. It is also happy to say that we have a new managing director in place this quarter, Tor Oskar Rydheim, who contributes to a good lift in the organization. And if you look at where he comes from, you also understand this with the so-called civil direction. He has very good experience from the so-called civil entrepreneur business. Let's look at Sweden. Sweden has a turnover in the quarter of 415 million towards 605 last year. Why such a big change? Well, there are three things that drive this. There is the currency change. This is the one-time effect of 71 million kroner, just to be clear, it was an income correction, not a cost correction, so it hit 71 on both the top line and the bottom line. And then there are a few short-term projects that have slipped a little in time. This means that yes, there will be a loss of turnover in 2026, but not a loss of turnover in total for MSC. Ebit, as you can see, we deliver minus 56, against plus 9 last year, as I said, 71 million kroner, which is hitting there, and Anders was in on it, this is a return, this is a legal failure from a operating contract with OPAV in 2018. It is clear that I and Anders are responsible for what we had in the books. Based on our so-called external legal advice, we thought it was a good space for us to have it in the books in the way we had. And then there was another failure. So it was an surprising failure for us. But again, I think it's great that we managed to absorb it in the quarter. And we correct for it when we look at Sweden. Correcting minus 56 for 71, we are at plus 15. And then Sweden is at a... Åsgeir Nord, Lene Engebretsen, Marianne Ulland Kellmer, Tor Oskar Rydheim Finland has a turnover in the quarter of 7.47 against 5.94, and we are happy to say that. We have predicted for a long time that there will be a growth. We were a little uncertain about the timing. We have probably predicted it for two and a half years this year than the first, so it came in a little stronger than expected for us. There is also a value effect there that is decreasing, so that means that the growth in Finland is very good. EBIT is not any worse.

It is at 54 million, 7.3%, against 2.6% last year.