Nordec Group grew profitably and continued to invest in the development of its business during 2023.

Year 2023 highlights

• Strong performance in the execution of Nordec’s strategy continued. Our teams were strengthened, particularly within sales and design management, and modernization investments in factories continued. Within sustainability, low-carbon solutions were developed further during the year.
• Nordec Group continued its strong financial performance in 2023; revenue grew by 6,2 % to EUR 329,2 million. Adjusted EBITDA improved to EUR 27,0 million, amounting to 8,2 % of revenue.
• Operating cash flow was clearly positive, and the balance sheet strengthened.

Nordec Group Oy press release 19.03.2024 at 09.00 EET UTC+3

Nordec Group grew profitably and continued to invest in the development of its business during 2023.

Year 2023 highlights

• Strong performance in the execution of Nordec’s strategy continued. Our teams were strengthened, particularly within sales and design management, and modernization investments in factories continued. Within sustainability, low-carbon solutions were developed further during the year.
• Nordec Group continued its strong financial performance in 2023; revenue grew by 6,2 % to EUR 329,2 million. Adjusted EBITDA improved to EUR 27,0 million, amounting to 8,2 % of revenue.
• Operating cash flow was clearly positive, and the balance sheet strengthened.

Kalle Luoto, CEO of Nordec Group, comments:

“I am very happy about our performance in 2023. We have progressed well with the execution of our growth plans and already during 2022 reached our original strategic target set for 2025, of revenue of EUR 300 million. During the challenging market environment that prevailed in 2023, we continued this growth path and were able to also improve our profitability and to invest in the development of our business. We are starting the year 2024 with a good order book, which together with a solid order intake during the beginning of this year will provide a good basis for continued growth. We have updated our strategic targets and priorities, and I am looking positively to this year with our plans. I am grateful for the strong performance and contribution from the whole Nordec team in implementing our strategy. We at Nordec are also grateful to our customers, who have trusted us, project after project. As the CEO of Nordec Group I am pleased to thank both employees and customers for another successful year 2023.”

Major developments and events during 2023

In 2023, the business units of Nordec further strengthened their teams and operations especially in sales and design management, to be able to ensure growth and excellent customer cooperation. Activity in logistics and battery value chain -related construction segments remained strong. Also, other projects related to industrial green transition are progressing and the activity in data center construction picked up towards the end of 2023. Nordec was also able to win new important projects in multi-storey construction and in the CEE area in 2023, providing a robust starting point for 2024. In addition, capacity and manning of the factories was substantially improved during the year and a modernization investment at the Oborniki factory in Poland was carried out.

Substantial development effort was carried out within sustainability. Nordec increased the use of low-carbon raw materials, improved energy efficiency at the factories and released several new EPDs for low-carbon products during the year. Nordec renewed its carbon footprint calculation and targets for carbon reduction. The target year for emission reductions (-50% for Scope 1 and 2 and -42% for Scope 3) was moved from 2035 to 2030. Nordec’s carbon footprint came down from 180,1 tCO2e in 2021 to 172,2 tCO2e in 2022.

The number of personnel in Nordec Group increased from 602 at the end of 2022 to 629 at the end of 2023. The increase in headcount resulted from the growth in volume of operations.

Financial performance

Nordec Group’s strong financial performance continued in 2023, in spite of the general downturn in the economy and the construction industry. Nevertheless, customers’ decision- making times on new projects became longer during the year, and as a result, Nordec’s order backlog declined to EUR 227,7 million from the record high levels a year earlier. Nevertheless, a solid order backlog, together with growing order intake during Q1 2024 combined with good project tendering activity in most of Nordec’s main customer and market segments, gives us a foundation for another year of continued growth and favorable financial performance in 2024.

Revenue in January-December 2023 was EUR 329,2 million, increasing by 6,2 percent compared to the previous year on a comparable basis. The growth in revenue was primarily driven by a high order backlog going into year 2023, combined with a good level of activity during the year in Nordec’s key customer and market segments, which consist of construction investments related to industrial green transition, the battery value chain, as well as investments into logistics buildings and data centers.

In 2023, revenue grew substantially in Norway, while declining in other markets from the high levels achieved in 2022. Sweden remained Nordec’s largest geographical market in 2023, representing 50 percent of revenues, while Norway grew to second place, representing 27 percent of revenues. Finland accounted for 16 percent, Central and Eastern Europe for 7 percent. It is typical for Nordec Group’s revenue to fluctuate between markets from one year to the next, depending on the location and timing of the Group’s key customer projects.

Operative profitability continued to improve in 2023. Adjusted EBITDA for January-December 2023 amounted to EUR 27,0 million, increasing clearly from the previous year. Adjusted EBITDA reached 8,2 percent of revenue. The improvement in profitability was attributable to increasing revenue during the period, combined with achieved cost and efficiency savings as well as continuing solid project execution.

The Group’s net profit amounted to EUR 15,6 million, a clear improvement compared to the previous year, resulting from improved operating profitability as well as a significantly lower amount of one-off items which burdened the result in 2022.

Nordec Group’s operating cash flow remained strong, and net working capital and net debt remained clearly negative at the end of the year. As a result of strong profitability and cash flow, the Group’s balance sheet strengthened, and the equity ratio increased to 43,3 percent.

 Further information:

Kalle Luoto

CEO

Nordec Group

Tel: +358 50 552 9682

kalle.luoto@nordec.com

About Nordec

Nordec Group Oy is one of the leading suppliers of steel frame structures and facade solutions for construction projects in the Nordic countries with a strong position in the Central and Eastern European (CEE) countries of Poland, Lithuania, the Czech Republic and Slovakia.

The company has long experience in the design, manufacture and installation of frame structures, facades, and bridges. Nordec's main raw material is steel. The offering includes single-storey buildings, multi-storey buildings, heavy industry buildings, bridges, and facade structures.

Nordec's revenue in 2022 was EUR 329,2 million and adjusted EBITDA of EUR 27.0 million.

Further information about Nordec is available on the Company's website at www.nordec.com.