Nordisk Bergteknik : Interim report Q1 2024 Presentation

May 2, 2024

Nordisk Bergteknik Q1

Table of contents

Nordisk Bergteknik at a glance

This is Nordisk Bergteknik

Diversified project portfolio to lower risks

Operational synergies lead to attractive offering and high entry barriers

Interim report Q1

Financial performance Performance per segment Sustainable financial outlook Net debt and leverage Performance in the Q1 business climate

Financial targets and strategy to get there

Predicted continued growth

Financial targets and dividend policy

This is Nordisk Bergteknik

Was there a better way of building modern, sustainable societies? We believed so. We also considered that a more consolidated market for rock and foundation solutions was part of the answer. So, in 2016, Nordisk Bergteknik was born.

Today, we lead the market in Northern Europe for those services, with 23 operative subsidiaries and over one thousand employees. But our history began in the 1960s, when one of our founders Wolgan Karlsson, provided services such as drilling, blasting, and tunnelling. That experience constitutes the core of our business model, enabling us to apply traditional knowledge to find new ways forward.

SECTORS

Infrastructure, energy, real estate, mining

THREE FINANCIAL SEGMENTS

• Foundation Sweden
• Rock Sweden
• Rock Norway

TWO BUSINESS AREAS

• Rock handling
• Foundation solutions

OVERALL GOAL

To contribute to the development of modern, sustainable societies

Leading the market in rock and foundation solutions

FOUNDED IN146m

2016 SEK

ADJ. EBIT Q1 2024 LTM

SEK 3,366m 4.3%

1,174

# OF EMPLOYEES

23

SALES Q1 2024 LTM	ADJ. EBIT MARGIN Q1 2024 LTM	OPERATING
		SUBSIDIARIES

Areas for our services and solutions

Rock

Drilling		Rock excavation		Rock and concrete
		reinforcement
Prospecting, excavation and		Excavation of rock, mainly
		Maintenance of rock and
reinforcement		through blasting
		concrete constructions

Foundation

Piling		Foundation
	reinforcements
Ensuring a stable and
	Stopping or preventing
reliable foundation
	subsidence of building

Sheet piling

Preventing water and soil from entering a construction area

Attractive business mix

REVENUE BY SEGMENT, LTM Q1 2024

24%48%

Rock
Rock
Norway
Sweden

28%

Foundation

Sweden

EBIT PER SEGMENT, LTM Q1 2024

11%

Foundation

Sweden

63%

26%	Rock
Sweden

Rock

Norway

Diversified project portfolio lowers the risk level

High revenue diversification and few projects with fixed price

No. of projects yearly

~1,500

Few large projects spread

over several years account

to less than

10%

yearly turnover

Direct exposure to construction of new housing

~10%

Mining and prospect drilling becoming an increased part of the group's sales

~15%

Operational synergies lead to attractive offering and barriers to entry

Synergies

• Knowledge sharing
• Flexible resource and machine allocation
• Centralised sourcing of raw materials and spare parts
• Efficient overhead functions
• Market coordination

Barriers to entry

• Economies of scale
• Strong market position and track record
• Highly experienced employees
• Modern and large machine park
• Local know-how

Interim Report Q1

Strong development within Rock Sweden and

positive effects of cost adaptions

Financial performance (1/2)

	1000
January - March	900
800
• Net sales decreased by 18% and amounted to SEK 751m (912).	700
600
• Organic growth amounted to -21 (21)%	500
400
• Adjusted EBIT margin amounted to 3.2 (5.6)%.
300
	200

	100
Comments	0

• Positive trend in Rock Sweden with improved margins compared to last quarter.
• Continued low activity in housing construction and tough weather conditions had a negative impact.
• Completed and initiated activities to restructure and streamline Rock Norway and Foundation Sweden have resulted in a positive outcome.
• Our previous assessment that there is a significant underlying need for infrastructure investments, as well as an increasing demand for operation and maintenance services in existing transportation networks and other infrastructure, remains unchanged. Additionally, there is a pronounced demand for several of our services as the green transition continues to be realized.

912

20,0%

751

632

5,6%

	3,5%
						3,2%
									0,0%
Q1 2022		Q1 2023	Q1 2024
				Net sales, SEKm		Adj. EBIT margin

SEKm	Q1 2022	Q1 2023	Q1 2024
Net sales	631.9	911.7	751.4
EBITDA	72.1	106.3	105.2
EBITDA margin	11.4%	11.7%	14.0%
Adj. EBITDA	73.6	123.4	106.5
Adj. EBITDA margin	11.6%	13.5%	14.2%
EBIT	20.5	33.7	22.7
EBIT margin	3.2%	3.7%	3.0%
Adj. EBIT	21.9	50.9	24.1
Adj. EBIT margin	3.5%	5.6%	3.2%