Norconsult ASA - Trading update third quarter and YTD 2023

24 Oct 2023 08:06 CEST

NOT FOR GENERAL RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN
AUSTRALIA, NEW ZEALAND, CANADA, JAPAN, THE UNITED STATES OR TO US PERSONS OR IN
ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

Sandvika, 24 October 2023: Norconsult ASA (“Norconsult” or the “Company”)
announced on 16 October 2023 its intention to launch an offering of shares in
the Company and to apply for a listing of its shares on the Oslo Stock Exchange.
The Company will publish its financial report for the third quarter 2023 on 29
November 2023. This trading update is provided to give a summary of the
preliminary unaudited consolidated income after external project costs and
adjusted EBITA for the third quarter and YTD 2023 together with related topics
and updates for the quarter.

Norconsult’s income after external project costs for the three-month period
ended 30 September 2023 amounts to approximately NOK 1,705 million (Q3 2022: NOK
1,523 million), an increase of about 12 percent compared with the same period
last year. Organic growth adjusted for calendar effects amounts to approximately
10 percent. The calendar effect of one less working day compared to the same
period last year is estimated to be a negative effect of approximately NOK 27
million. The organic growth in income after external project costs is mainly
driven by a higher number of full-time equivalents (FTEs) year over year and an
increased average billing rate.

Adjusted EBITA(1) for the three-month period ended 30 September 2023 amounts to
approximately
NOK 108 million (Q3 2022: NOK 109 million) and is impacted by the abovementioned
negative calendar effects, increased billing rate and one-off positive effects
of NOK 13 million related to earn-outs from acquisitions. The adjusted EBITA
margin(2) adjusted for calendar effects amounts to approximately 7.8 percent (Q3
2022: 7.2 percent). The adjusted EBITA margin unadjusted for calendar effects
amounts to approximately 6.4 percent.

Income after external project costs for the nine-month period ended 30 September
2023 amounts to approximately NOK 6,160 million (Q3 YTD 2022: NOK 5,383
million), an increase of about 14 percent compared with the same period last
year. Organic growth adjusted for calendar effects amounts to approximately 11
percent. The calendar effect of one less working day compared with the same
period last year is estimated to be a negative effect of approximately NOK 34
million. An overall solid billing rate development and an increased number of
FTEs(3) have been the main drivers for organic growth in 2023.

Adjusted EBITA for the nine-month period ended 30 September 2023 amounts to
approximately
NOK 601 million (Q3 YTD 2022: NOK 534 million). The adjusted EBITA margin
adjusted for calendar effects amounts to approximately 10.3 percent (Q3 YTD
2022: 9.9 percent). The adjusted EBITA margin unadjusted for calendar effects
amounts to approximately 9.8 percent.

The net order backlog (4) amounts to approximately NOK 6.1 billion at the end of
the third quarter 2023, up from NOK 5.8 billion as per end of the second quarter
2023.

“We are pleased with the development in revenue and results, during a period
when markets are affected by increased interest rates and continued high
inflation. Order backlog is solid, and we are experiencing a solid activity
level in our core markets. Norconsult will publish its final results for the
third quarter at the end of November, where we will also provide further details
on developments in the quarter,” says Egil Hogna, CEO of Norconsult.

The information above is based on a preliminary assessment of the Company's
third quarter 2023 financial results and may be subject to change until the
financial statements have been finally approved and published by the Company.

The overall outlook for the remainder of 2023 as presented in the external
earnings report for Q2 2023 remains unchanged.

The Company will release its third quarter 2023 report on Wednesday 29 November
2023 at 07:00 CET.

For further information, please contact:
Dag Fladby, CFO Norconsult ASA, IR@norconsult.com

About Norconsult:
Norconsult is a leading pan-Nordic interdisciplinary consulting firm combining
engineering, architecture and digital expertise across projects of all sizes,
for private and public customers in infrastructure, energy and industry,
buildings and architecture. Through innovation and creativity, and with our
purpose «Every day we improve everyday life», we are constantly seeking more
sustainable and efficient solutions which are beneficial to society.
Headquartered in Sandvika, Norway, Norconsult’s delivery model is centered
around knowledge hubs and local presence through approximately 6,000 employees
across more than 130 offices in Norway, Sweden, Denmark, Iceland, Poland and
Finland. (Figures as of 30.06.2023)

(1) Adj. EBITA is defined as earnings before amortisation and impairment losses
of intangible assets, share-based compensation expenses for the employee share
programs for 2022 and 2023, expenses related to the IPO process, financial items
and taxes. The new discounted and bonus share programs starting in 2024, is to
be included in adj. EBITA.

(2) Adj. EBITA margin is defined as adj. EBITA (as defined above) as a
percentage of operating revenue and other income after external project costs.

(3) Number of full-time equivalents (FTEs) is a mathematical calculation of
employees with regards to percentage of a full-time position. The term includes
all staff on pay-roll including staff on temporary leave excluding temporary
personnel.

(4) Order backlog is defined as expected remaining operating revenues on new and
existing contracts. Group internal contracts are excluded. Call-offs on frame
agreements are included in the order backlog when signed.


Important notice

This announcement is for informational purposes only and does not contain or
constitute an offer of, or the solicitation of an offer to buy or subscribe for,
securities to any person in Australia, New Zealand, Canada, Japan or the United
States, including its territories and possessions, any state of the United
States and the District of Columbia (the “United States”) or to any person to
whom, or in any jurisdiction in which, such offer or solicitation is unlawful.
The securities referred to herein may not be offered, subscribed, used, pledged,
sold, resold, allotted, delivered or transferred, directly or indirectly, in or
into the United States absent registration under the U.S. Securities Act of
1933, as amended (the “U.S. Securities Act”) or an exemption from, or in a
transaction not subject to, the registration requirements of the U.S. Securities
Act. The offer and sale of the securities referred to herein has not been and
will not be registered under the U.S. Securities Act or under the applicable
securities laws of Australia, New Zealand, Canada or Japan. There will be no
public offer of the securities in the United States. Subject to certain
exceptions, the securities referred to herein may not be offered or sold in
Australia, New Zealand, Canada or Japan or to, or for the account or benefit of,
any national, resident or citizen of Australia, New Zealand, Canada or Japan.

Any offering of the securities referred to in this announcement will be made by
means of a prospectus. This announcement is an advertisement and is not a
prospectus for the purposes of Regulation (EU) 2017/1129 on prospectuses to be
published when securities are offered to the public or admitted to trading on a
regulated market, and repealing Directive 2003/71/EC (as amended) as implemented
in any member state of the European Economic Area (the “EEA”) (the “EU
Prospectus Regulation”). Investors should not subscribe for any securities
referred to in this announcement except on the basis of information contained in
the aforementioned prospectus, if a prospectus is published. Copies of any such
prospectus will, following publication, be available from the Company's
registered office and, subject to certain exceptions, on the website of the
Company.

In any member state of the EEA, other than Norway, Sweden, Denmark and Finland,
this communication is only address to and is only directed at persons who are
“qualified investors” within the meaning of Article 2(e) of the EU Prospectus
Regulation.

This communication does not constitute an offer of the securities referred to
herein to the public in the United Kingdom. No prospectus has been or will be
approved in the United Kingdom in respect of the securities referred to herein.
This communication is being distributed to and is directed only at persons : (A)
(i) who have professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the “Order”), (ii) falling within Article
49(2)(a) to (d) of the Order and (iii) to whom it may otherwise lawfully be
communicated; and (B) who are “qualified investors” within the meaning of
Article 2(e) of the Prospectus Regulation (Regulation (EU) 2017/1129) as it
forms part of retained EU law as defined in the European Union (Withdrawal) Act
2018.

Matters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "believe", "aims", "expect",
"anticipate", "intends", "estimate", "will", "may", "continue", "should" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its control.
Such risks, uncertainties, contingencies and other important factors could cause
actual events to differ materially from the expectations expressed or implied in
this release by such forward-looking statements. Forward-looking statements
speak only as of the date they are made and cannot be relied upon as a guide to
future performance. The Company and its respective affiliates expressly
disclaims any obligation or undertaking to update, review or revise any
forward-looking statement contained in this announcement whether as a result of
new information, future developments or otherwise.

Certain figures contained in this document, including financial information,
have been subject to rounding adjustments. Accordingly, in certain instances,
the sum or percentage change of the numbers contained in this document may not
conform exactly with the total figure.

More information:
Access the news on Oslo Bors NewsWeb site