Interim report Q1 2023

January-March 2023
• Total operating revenue amounted to NOK 704.6 million (526.4), an increase of 33.8%. Currency adjusted organic growth was 8.5%.
• Revenue from customer contracts amounted to NOK 700. million (518.2) an increase of 35.1%.
• EBIT amounted to NOK 46.0 million (36.3).
• The period was charged with non-recurring items amounting to NOK 2.4 million (0.0).
• Adjusted EBITA amounted to NOK 59.4 million (43.3) up 37.2%.
• Profit for the period was NOK 32.6 million (18.2) up 79.3%
• Cash flow from operating activities totaled NOK 45.1 million (34.4).
• Basic/Diluted earnings per share amounted to NOK 0.16 (0.10).

Significant events during the January-March 2023 period
• Norva24 acquired NRC Gravco in Oslo adding NOK 90 million in revenues and further consolidating Norva24’s position in the Oslo and surrounding area.
• Henrik Damgaard has accepted a new job as CEO for a company in another non-competing industry, and he has therefore decided to step down as Group CEO in July 2023. The board has started the process of finding the new CEO of Norva24.

Significant events after the reporting period
• Mikael Smedborn assumed his position as new CEO of Sweden.

Strong operational performance in Q1, with high organic and total revenue growth combined with margin uplift

In Q1 2023, Norva24 achieved a strong total revenue growth of 34%, supported by currency adjusted organic growth of 9%. Q1 is generally a quarter with seasonally lower activity than the rest of the year and hence lower profitability due to winter weather conditions impacting the business. We are pleased with the 37%
Adjusted EBITA growth and margin uplift during the quarter, which has been normal regarding winter weather comparable to previous years.
Adjusted EBITA in Q1 2023 amounted to NOK 59 million, an increase of 37%, and adjusted EBITA-margin was 8.4% during the quarter. We remain confident that Norva24’s business model is resilient in this weaker economic environment as well as inflation resistant.

Norva24 is aiming to be the lighthouse for inspiration also regarding environmental solutions in the UIM industry. We are
proud to have achieved a 44% share of revenue defined as taxonomy aligned green services for Norva24 in 2022. Many of our core services make a substantial contribution in addressing the challenges put on modern society by climate change. UIM is critical both in addressing more severe rain and flooding events, as well as in ensuring that clean water is provided to the end user and not wasted in route. Clean water and sanitation is UN’s goal 6 for sustainable development and a central part of our mission as well. This quarter we also had a particular focus at country level on energy consumption for heating. The results have been good, and we saw a reduction of energy for heating purposes on group
level in Q1 2023.

Cash flow from operating activities is always seasonally lower in Q1 and amounted to NOK 45 million, an improvement of 31% compared with Q1 last year.
The M&A activity in 2023 had a promising start, as Norva24 in January 2023 completed the acquisition of Gravco in Norway, a company with a long history and strong brand which strengthens
Norva24 in the greater Oslo area and surroundings. Gravco had revenues of NOK 90 million in 2022 and high margins.
We are comfortable with our healthy financial position, excellent cash flow and leverage, proforma, below 2.2x LTM
adjusted EBITDA at end of Q1. This is providing us with significant headroom in relation to our financial covenants in the financing facility. We currently have NOK 530 million available in the credit facility to enable continued strong M&A pace going forward.

The seven acquisitions we have closed during the last 12 months add annual revenue of NOK 440 million and provided an
acquired growth of 20% in Q1 2023. Combined with the strong organic growth of 9% (currency adjusted), Norva24 is well on track to achieve the financial target of NOK 4.5 billion in revenue by 2025 and an adjusted EBITA margin of 14-15% in the medium term.

The seven companies we have welcomed to the Norva24 group during the last twelve months are IRG and Stockholm Relining in Sweden, Thornvig Jensen in Denmark as well as Zimmerbeutel,
Jutzy and CKS Berlin in Germany as well as Gravco in Norway. We will continue to act in a prudent and orderly way in accordance with our acquisition strategy, with diligent assessment and integration
of candidates, to ensure continued strong organic development.

In Q1, all segments delivered positive currency adjusted organic growth. Norway and Denmark showed double digit currency
adjusted organic growth with 10% and 11% respectively. In Germany the currency adjusted organic growth was 9% and in Sweden the currency adjusted organic growth was 6% in Q1.
Total revenue growth in Germany was also very strong at 60% in Q1 driven by an currency adjusted organic growth of 9% and acqusition growth of 40%. Adjusted EBITA margin decreased 2 p.p. to 10% due to weaker margin in acquired companies, and slightly weaker organic margin.

The improvements and positive momentum in the Danish operations seen in previous quarters continued in Q1. Adjusted
EBITA margin improved by 6 percentage points for Q1 compared with last year, confirming again that Denmark is on the right track.
Organic growth in Norway was 10%, on top of very strong currency adjusted organic growth of 21% in Q1 last year. Q1 2022
growth was positively affected by the backlog of work after Covid-19. As a result, adjusted EBITA margin in Norway was 13%, slightly weaker than the same quarter last year. Sweden posted a healthy Q1 adjusted EBITA margin of 9% up from 5% in Q1 last year, as sign of stronger organic margins, but also a sign that the acqusitions are starting to provide margin enhancement.

Our vision remains clear and achievable: We want to be the market leader in underground infrastructure maintenance in Europe. We will continue to strengthen our position through both acquisitions and organic growth to fully live up to our promise to our customers: “We always help!”

Henrik Damgaard
Group CEO

Investors, analysts and journalists are welcome to attend the company’s webcast with teleconference at 09.30 (CEST)

Henrik Damgaard, Group CEO, Dean Zuzic Group CFO, Stein Yndestad, CDO, and Sture Stölen, Head of IR, will present the report. The presentation will be held in English.

Date: 23 May 2023
Time: Report published at 08.00 (CEST)
Webcast with teleconference at 09.30 (CEST)
To participiate in the conference and see the phone numbers, please go to link below

Webcast/Teleconference :
https://financialhearings.com/event/45833
The report, presentation and audiocast with teleconference will be available at https://www.norva24.com/section/investors/

Contact information
Dean Zuzic, Group CFO
Tel: +47 414 33 560
dean.zuzic@norva24.com

Stein Yndestad, Chief Corporate Development Officer
Tel: +47 916 86 696
stein.yndestad@norva24.com

Sture Stölen, Head of IR
Tel: +46 723 68 65 07
sture.stolen@norva24.com