#1NORDECON Investor presentation Q2 2022#2Business model Industrial buildings Public buildings Other infrastructure Environmental engineering Utility networks Specialist engineering Bridges, viaducts Port construction Rail construction Residential buildings Commercial buildings. NORDECON BUILDINGS INFRASTRUCTURE Road construction and maintenance Road construction Road maintenance PROFESSIONALISM OPENNESS. RELIABILITY 2#3STRATEGIC AGENDA FOR 2019-2022 The Group will grow, mostly organically, with a focus on more efficient use of its existing resources. In Estonia, we will operate, as market leader, in both the building and infrastructure construction segments. In Sweden, we will focus on general contracting in Stockholm and the surrounding area. In Finland, we will focus on general contracting and concrete works in Helsinki and the surrounding area. In Ukraine, we will focus on general contracting and concrete works, primarily in Kiev and the surrounding area. Improving profitability through more precise planning of our design and construction operations. Increasing our design and digitalisation capabilities. Simplifying and automating work and decision-making processes. Monitoring the balance between the contract portfolios of different business segments. Valuing balanced teamwork where youthful energy and drive complement long-term experience. Noticing and recognising each employee's individual contribution and initiative. Revenue will grow at least 10% per year. The contribution of foreign markets will increase to 20% of revenue. Real estate development revenue will grow to at least 10% of revenue earned in Estonia. Operating margin per year will be consistently above 3%. Operating profit per employee will increase to at least 10 thousand euros per year. On average, at least 30% of profit for the year will be distributed as dividends. BUSINESS LINES AND MARKETS ACTIVITIES NORDECON FINANCIAL TARGETS PROFESSIONALISM OPENNESS. RELIABILITY 3#4AJAMAJA OFFICE BUILDING AT ROTERMANNI 6 LOCATION Tallinn CUSTOMER Rotermann City OÜ ARCHITECT KOKO architects CONSTRUCTION PERIOD April 2019 - April 2021 CONTRACTOR Nordecon AS PROJECT MANAGER Oleg Kaas NORDECON PORT AERO SPACEST SORAINEN A PROFESSIONALISM OPENNESS . RELIABILITY 4#5PERIOD IN BRIEF The group's revenue for the first half of 2022 was €149,256 thousand, roughly 27% larger than a year earlier when revenue amounted to €117,966 thousand. Revenue growth was attributable to the revenue of the Buildings segment, which grew by 40%. The revenue of the Infrastructure segment decreased by 21%. The decline in revenue generated by the Infrastructure segment is attributable to the cutback in investments made by the largest customer, the Transport Administration, The group ended the first half of 2022 with an operating profit of €1,457 thousand (H1 2021: an operating loss of €1,643 thousand). EBITDA for the period amounted to €3,158 thousand (H1 2021: €92 thousand). Nordecon ended the first half of 2022 with a gross profit of €3,181 thousand (H1 2021: €1,306 thousand) and gross margins that were higher than a year earlier: 2.1% for the first half-year (H1 2021: 1.1%) and 2.5% for the second quarter (Q2 2021: 2.0%). The group's gross profit for both the first half and second quarter of 2022 was earned in the Buildings segment. The Infrastructure segment's performance was weaker than in the same period last year, The group's order book stood at €220,687 thousand at 30 June 2022, reflecting an 18% decrease year on year. In the first half and second quarter of 2022, we signed new contracts of €89,661 thousand and €26,494 thousand, respectively (H1 2021: €174,820 thousand and Q2 2021: €69,938 thousand). The group's administrative expenses for the first half of 2022 amounted to €3,118 thousand. Compared with the same period last year, administrative expenses grew by around 10% (H1 2021: €2,833 thousand) due to general growth in the cost of goods and services. The ratio of administrative expenses to revenue (12 months rolling) declined year on year, decreasing to 2.0% (H1 2021: 2.2%). Operating activities produced a net cash outflow of €1,955 thousand the first half of 2022 (H1 2021: an outflow of €163 thousand). Operating cash flow is increasingly affected by the need to make prepayments to materials suppliers, which have grown due to spikes in materials prices and continuing supply disruptions. NORDECON PROFESSIONALISM OPENNESS. RELIABILITY 5#6KOHTLA-JÄRVE SPORTS AND HEALTH CENTRE LOCATION Kohtla-Järve, Ida-Viru County CUSTOMER Kohtla-Järve City Government ARCHITECT OÜ Zoroaster CONSTRUCTION PERIOD April 2019 - March 2021 CONTRACTOR Nordecon AS PROJECT MANAGER Oleg Kaas NORDECON PROFESSIONALISM OPENNESS . RELIABILITY 6 10#7REVENUE AND OPERATING PROFIT The Buildings segment delivered gross margins of 3.8% for the half-year and 3.4% for the second quarter (H1 2021: 2.5% and Q2 20221: 2.8%). The Infrastructure segment had negative gross margins for both the first half-year and second quarter: (6.4)% and (0.3)%, respectively (H1 2021: (0.5)% and Q2 2021: 3.2%). 100 000 90 000 80 000 70 000 60 000 50 000 Figure Ratio 6M 2020 6M 2021 6M 2022 40 000 Revenue (EUR '000) 136 798 117 966 149 256 30 000 Revenue change 36% -14% 27% Net profit/loss (EUR 20 000 '000) 1419 -2 390 -26 Gross margin 10 000 4,4% 1,1% 2,1% EBITDA margin 2,7% 0,1% 2,1% Net margin 1,0% -2,0% 0.0% Administrative expenses to revenue (12 month rolling) 2.8% 2.2% 2.0% NORDECON Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenue Q4 2019 Q1 2020 Q2 2020 Operating profit/loss Q3 2020 4Q 2020 1Q 2021 2Q2021 Gross profit 3Q2021 4Q2021 1Q2022 2Q2022 PROFESSIONALISM OPENNESS. RELIABILITY 6.000 4 000 2000 -2000 -4000 -6000 7#8RAATUSE HEALTH CENTRE LOCATION Tartu city CUSTOMER Tartu Kesklinna Perearstikeskus OU DESIGNER U-Disain OÜ CONSTRUCTION PERIOD February 2020- August 2021 CONTRACTOR Nordecon Betoon OÜ/ Embach Ehitus OÜ PROJECT MANAGER Ahti Kala NORDECON THE WE இயம Stay SYNLAB CONFIDO PROFESSIONALISM OPENNESS . RELIABILITY 8#9Revenue by Geographic Regions. Estonia 6 M 2020 6 M 2021 88% 96% 6 M 2022 97% Latvia 0% 0% 2% Finland 5% 3% 1% Ukraine 1% 1% 0% ■ Estonia Ukraine ■ Latvia ■ Finland ■ Sweden 2% 1% 0 5% 1% 6% 6M 0% 3% 0% 6M 2021 1% 6M 2022 OOO 2020 88% 96% 97% Sweden 6% 0% The group's revenues from outside Estonia have decreased. In the first half of 2022, markets foreign accounted for around 3% of total revenue. 0% Due to Russia's military invasion of Ukraine, full-scale operations of the group's Ukrainian subsidiary TOV have suspended: quarter Eurocon Ukraine been temporarily in the second the subsidiary continued work on one building project in Kiev. The group also operates on a project basis in Latvia where it was building a wind farm in the reporting period. The group did not generate any revenue and had no ongoing construction contracts in the Swedish market. NORDECON PROFESSIONALISM OPENNESS. RELIABILITY 9#10Order book and revenues ORDER BOOK The group's order book stood at €220,687 thousand at 30 June 2022, reflecting an 18% decrease year on year. 350 000 300 000 Regarding proportions, the Buildings 250 000 segment still dominates, accounting for 85%, while the Infrastructure accounts for 15% of the total order book (30 June 2021: Buildings: 79% and Infrastructure: 21%). 200 000 150 000 In the first half and second quarter of 2022, we signed new contracts of €89,661 thousand and €26,494 thousand, respectively (H1 2021: €174,820 thousand and Q2 2021: €69,938 thousand). 100 000 50 000 NORDECON Q2 2018 Q3 2018 Q4 2018 Q1 2019 ■Order backlog (quarter end) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Revenue (TTM) Q1 2022 Q2 2022 PROFESSIONALISM OPENNESS. RELIABILITY 10#11KINDLUSE SCHOOL LOCATION Rae, Harju County CUSTOMER Rae Rural Municipality Government DESIGNER Sweco Projekt AS CONSTRUCTION PERIOD November 2019 - May 2021 CONTRACTOR Nordecon AS PROJECT MANAGER Silver Sein NORDECON 9888 KINDLUSE SPORDIHOONE KINDLUSE COOL PROFESSIONALISM OPENNESS . RELIABILITY 11#12Revenue distribution In the first half of 2022, the Buildings and the Infrastructure segment generated revenue of €128,430 thousand and €20,703 thousand, respectively. The corresponding figures for the first half of 2021 were €91,557 thousand and thousand. €26,217 In the Buildings segment, the revenues of all subsegments grew compared with the same period last year. The revenue contributions of the apartment, the commercial and the public buildings subsegments were practically equal while the revenue contribution of the industrial and warehouse facilities subsegment was somewhat smaller. In the Infrastructure segment, the largest revenue contributor is still road construction and maintenance although its revenue proportionate contribution decreased. NORDECON Infrastructure Buildings Engineering (incl. Hydraulic engineering) Road construction and maintenance Environmental engineering Other engineering 16 19 22 84 81 78 5 5 5 80 81 86 Commercial buildings 30 Industrial and warehouse facilities Apartment buildings Public buildings 26 30 31 9 6 16 16 27 27 30 30 34 30 28 14 5 4 14 and have 6 M 2020 6 M 2021 6 M 2022 6 M 2020 6 M 2021 6 M 2022 6 M 2020 6 M 2021 6 M 2022 BY SEGMENTS INFRASTRUCTURE BUILDINGS PROFESSIONALISM OPENNESS. RELIABILITY 12#13COOP/KONSUM SUPERMARKET LOCATION Käina, Hiiu County CUSTOMER Hiiumaa Consumers Cooperative Association ARCHITECT DAGOpen Arhitektuuribüroo CONSTRUCTION PERIOD December 2020- June 2021 CONTRACTOR Nordecon Betoon OÜ PROJECT MANAGER Reino Mälk NORDECON Apabila Coop PROFESSIONALISM OPENNESS . RELIABILITY 13#14Share and shareholders NCN1T Largest shareholders in Nordecon AS at 30 June 2022 AS NORDIC CONTRACTORS Number of Ownership interest shares (%) 16 563 145 LUKSUSJAHT AS TOOMAS LUMAN 4 301 603 51.16 13.29 663 500 2.05 OMX TALLINN 2200 1.35 2100 OMX Tallinn NCN1T 1.25 2000 1900 1.15 OLEGS RADCENKO 580 000 1.79 1800 1700 1600 1.05 0.95 LEMBIT TALPSEPP 376 239 1.16 NÕMME ERAHARIDUSE SA 1500 370 370 1.14 0.85 SEB PANK AS_CLIENTS 300 000 0.93 1400 SEB LIFE AND PENSION 1300 0.75 BALTIC SE EESTI FILIAAL 255 000 0.79 01.01.2022 01.02.2022 01.03.2022 01.04.2022 01.05.2022 01.06.2022 01.07.2022 GENADI BULATOV 250 600 0.77 SVENSKA HANDELSBANKEN CLIENTS ACCOUNT 210 556 0.65 Index/share OMX Tallinn NCN1T 31.12.2021 30.06.2022 +/- 2,001.03 1,789.65 -10.56% 1.20 EUR 0.79 EUR -34.17% NORDECON PROFESSIONALISM OPENNESS. RELIABILITY 14#15Nordecon AS Tel: +372 615 4400 www.nordecon.com Toompuiestee 35, Tallinn 10149 Estonia Head of Investor Relations Andri Hõbemägi Tel: +372 615 4400 [email protected]