NRC GROUP ASA: REPORT FOR SECOND QUARTER AND FIRST HALF OF 2015

Please find attached the Report for Second Quarter and First Half of 2015

HIGHLIGHTS SECOND QUARTER 2015

- Completed the Team Bane transaction
- Acquired Svensk Järnvägsteknik AB
- Entered into agreements for the acquisitions of Litz Entreprenad AB  and Elektrobyggnad AB conditional on due dilligence
- Record high order back log of NOK 1,084 million (NOK 496 million)
- Private placement of NOK 84 million and the repair issue of NOK 10 million were successfully completed in August

KEY FIGURES

- Revenue NOK 135 million (NOK 71 million)
- Net profit NOK 20.6 million (NOK 0.8 million)

PRO FORMA KEY FIGURES*

- Revenue NOK 216 million (NOK 241 million)*
- Adjusted EBITDA NOK 4 million (NOK 25 million)*
- Adjusted EBIT NOK -5 million (NOK 18 million)*
- Adjusted EBT NOK -8 million (NOK 16 million)*

* Include pro forma figures for Team Bane and SJT for the second quarter 2015, adjusted for transaction costs.

COMMENTS ON SECOND QUARTER 2015 AND FIRST HALF OF 2015

The first half year of 2015 was a transition into new and exciting times. The geomatics business, that traditionally has been NRC's core business, was complemented with two major acquisitions within the rail construction industry. This establishes NRC Group as one of the leading Scandinavian infrastructure companies within rail construction.  

Following completion of the acquisitions, the companies now forming the new NRC Group have made great efforts aligning for the new structure and shaping the new company. Much has been achieved in establishing the organization and business processes.  NRC Group continues exploring opportunities for synergies between the Geo and Rail divisions, and identifying new geo-information business opportunities in the rail segment.

The two announced share issues totalling NOK 94 million were fully subscribed in August, giving financial flexibility to further develop the business. Two additional potential acquisitions have been identified that will complement the Swedish rail operations and strengthen its position as a total provider of rail construction services.

Rail infrastructure construction and maintenance is very much on the agenda in the Nordics, in the political discussions and in government actions, with investment plans for the coming decade of unprecedented proportions.  

Business wise, there is good momentum in both the Rail and Geo divisions as we enter into the second half of 2015. An all-time high order backlog shows that NRC Group is well positioned and competitive in the markets it operates and well on track for future growth.

ABOUT NRC GROUP ASA

NRC Group is a leading company within the Nordic infrastructure market. The group operates within two business segments, Rail and Geo.

RAIL: The Rail division is a fully integrated rail infrastructure contractor covering the Norwegian and Swedish market. The Rail division is a full-range supplier for the construction of all types of rails including train, tram and subway. Main service offerings include specialized track work, power supply and signalling work. The Rail division has all the necessary approvals to work within the train, tram and subway segments.

GEO: The Geo division operates within acquisition, processing and modelling of geographic information. The Geo division holds right to several European databases with collections of maps, images and models. With particular focus on online services, data and solutions are provided to customers in government, enterprise and consumer markets. The Geo
division supplies a wide range of mapping and geographic services that satisfy various standards and specifications, in addition to customized client solutions.

For further information, please contact: Kristian Lundkvist, Chairman of the Board, mobile: (+47) 99 77 71 77
http://www.nrcgroup.no/

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.