Second quarter 2017 Investor presentation 18 August 2017 1 - PowerPoint PPT Presentation

Second quarter 2017 Investor presentation 18 August 2017 1

Content § Highlights - Morten Holum, CEO § Results and financials - Svein Vestermo, CFO § The road ahead - Morten Holum, CEO Saferoad Group was listed on the Oslo Stock Exchange on 29 May 2017 with the ticker “SAFE” 2

Highlights Q2 2017 Underlying revenue, NOK mill. 2,000 § Revenue growth 1,500 1,000 1,701 1,626 1,597 1,537 500 904 § Stable earnings - Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Underlying EBITDA, NOK mill . § High activity in main markets 300 200 § Cost efficiencies and strategic 221 100 152 152 153 portfolio adjustments - (56) -100 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 3

Stable underlying Group earnings Underlying EBITDA – change quarter-on-quarter Underlying EBITDA margin, rolling 12 months NOK million NOK million 160 12% 9.5 % 9.5 % (3) 150 10 9.3 % (7) 6 153 10% 152 (7) 9.1 % 9.0 % 8.0 % 7.7 % 140 7.3 % 8% 7.1 % 6.7 % 130 6% 120 4% 110 2% Road Safety Road Infrastructure Road Safety Road Infrastructure 100 Q2 16 RS Nordic RS Europe RI Nordic RI Europe Other & Q2 17 0% elim. Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 4

Key developments in the quarter Road Safety Road Infrastructure § High activity in the Nordics, good traction in § Stable Nordic markets work zone protection § Favorable European market conditions, § Positive market development in Germany and particularly for EU-financed projects in Poland Poland and in the Baltics § Export sales picked up in the quarter § Export activities are increasing § Large contract of NOK 50 million in Denmark for § Reached agreement to divest the Water & a full range of road safety solutions in Sewage business in Sweden for approximately 2017-2019 SEK 90 million 5

Results and financials Svein Vestermo, CFO 6

Overview – Group and business areas Second quarter 2017 Second quarter 2016 Last 12 m – June 2017 Last 12 m – June 2016 Amounts in NOK million Operating Operating Operating Operating EBITDA* Margin* EBITDA* Margin* EBITDA* Margin* EBITDA* Margin* revenues* revenues* revenues* revenues* Road Safety Nordic 769 86 11.1% 758 93 12.3% 2 668 233 8.7% 2 673 273 10.2% Road Safety Europe 368 38 10.2% 356 27 7.6% 1 451 153 10.6% 1 394 85 6.1% Total Road Safety 1 123 123 11.0% 1 100 120 10.9% 4 044 386 9.5% 3 984 358 9.0% Road Infrastructure Nordic 236 18 7.8% 261 21 8.1% 819 49 5.9% 824 32 3.9% Road Infrastructure Europe 301 19 6.5% 272 26 9.6% 1 001 70 7.0% 1 075 104 9.6% Total Road Infrastructure 519 38 7.3% 510 47 9.3% 1 765 119 6.7% 1 841 131 7.1% Other and Eliminations - (13) (15) - (40) (35) (37) (42) - (15) (9) Total Group 1 626 153 9.4% 1 597 152 9.5% 5 768 468 8.1% 5 787 448 7.7% * Underlying figures 7

Road Safety Nordic – on track 2nd quarter Year to date 2017 2016 2017 2016 NOK million § Sales and earning improvements in signs and Underlying operating revenue 769 758 1 218 1 198 work zone protection Underlying EBITDA 86 93 67 71 Underlying EBITA 65 73 25 32 § Margins in road restraint systems were lower Reported EBITDA 73 93 54 67 than the same quarter last year, but higher than Underlying EBITDA margin 11.1 % 12.3 % 5.5 % 5.9 % the fourth quarter 2016 § Lower export volumes of rock support products Underlying EBITDA, NOK million 120 § Lower capacity utilization in the production 100 80 60 112 93 86 40 53 20 - (19) -20 -40 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 8

Road Safety Europe – solid performance and improved margins 2nd quarter Year to date 2017 2016 2017 2016 NOK million § 8% revenue growth adjusted for sale of Limes Underlying operating revenue 368 356 588 575 Mobile Underlying EBITDA 38 27 39 22 Underlying EBITA 31 19 27 6 § Increased sales volume within road restraint Reported EBITDA 32 27 50 22 systems in Poland and Germany Underlying EBITDA margin 10.2 % 7.6 % 6.6 % 3.9 % - Large upfront material sales due to new regime - Increased export sales Underlying EBITDA, NOK million 70 § Sales volume positively impacts margins 60 50 § Improved operational efficiencies and supply 40 management 66 30 49 20 38 27 10 1 - Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 9

Road Infrastructure Nordic – on par with last year 2nd quarter Year to date 2017 2016 2017 2016 NOK million § Decline in total sales Underlying operating revenue 236 261 371 403 Underlying EBITDA 18 21 10 13 - Lower sales of traded products in Sweden Underlying EBITA 18 20 8 11 Reported EBITDA - Sales impacted by phasing of projects within 18 21 10 13 technical products year over year Underlying EBITDA margin 7.8 % 8.1 % 2.7 % 3.2 % - Combined sales in Norway, Finland and Denmark on par with last year Underlying EBITDA, NOK million 40 § Earnings and margin on par with last year 30 § Agreement to sell water and sewage business 20 33 in Sweden 21 10 18 5 - (9) -10 -20 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 10

Road Infrastructure Europe – high sales activity 2nd quarter Year to date 2017 2016 2017 2016 NOK million § High sales volumes of plastic pipes in Poland Underlying operating revenue 301 272 426 425 and the Baltics Underlying EBITDA 19 26 1 22 Underlying EBITA 13 19 (11) 9 § Export sales picked up towards the end of the Reported EBITDA 19 26 1 22 quarter Underlying EBITDA margin 6.5 % 9.6 % 0.3 % 5.2 % § Earnings and margin negatively impacted by product mix Underlying EBITDA, NOK million - Higher share of plastic pipes and water and 40 sewage products 30 20 36 § Acquisition of Elikopol in Poland approved in 33 26 10 19 August - (18) -10 -20 -30 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 11

Profit and loss statement 2 nd quarter YTD 2017 2016 2017 2016 NOK million § Reported EBITDA of NOK 86 Operating revenue 1 625 1 597 2 546 2 526 million impacted by transaction Total operating cost (1 539) (1 445) (2 513) (2 427) costs related to the listing on the EBITDA 86 151 33 99 Oslo Stock Exchange Depreciation and impairment (37) (40) (74) (80) EBITA 49 111 (41) 19 § Increase in financial income mainly Amortisation and impairment (16) (19) (32) (41) explained by debt extinguishment EBIT 33 92 (73) (21) of NOK 139 million Net financial income/expense 128 (76) 72 (163) Income (loss) before tax 161 16 (1) (184) Income taxes (17) (15) 15 20 § Financial expenses impacted by Net income (loss) 144 1 13 (165) significantly lower level of net Of which non-controlling interests 5 9 (4) 6 interest bearing debt going forward Earnings per share (NOK) 2 0 0 (3) EBITDA reported 86 151 33 99 Items excluded from underlying EBITDA 67 1 63 6 EBITDA underlying 153 152 96 105 12

Development in cash flow during Q2 2017 1,400 1 400 1,200 1,000 800 NOK million 600 400 153 234 (1 019) 200 (58) 102 (67) - (212) (18) (48) -200 Cash flow from operations Cash flow from financing activities -400 Cash per EBITDA Non-recurring Changes in Other items Net CF from Proceeds from Net proceeds Other financing Cash per 31.03.17 underlying items working capital investment share issue from borrowings activities and fx 30.06.17 activities 13

Balance sheet 30.06.2017 30.06.2016 31.12.2016 NOK million Total intangible assets 1 548 1 878 1 524 § Comprehensive changes in debt Total fixed assets 940 953 934 and equity during the quarter due Other non-current assets 79 54 57 Total non-current assets 2 567 2 884 2 515 to IPO and refinancing Inventories 1 144 1 004 910 Trade receivables 1 076 934 844 § Equity ratio at the end of the Other receivables 366 312 220 quarter at a solid 49 % up from Cash and cash equivalents 234 179 329 25% at year-end Total current assets 2 822 2 428 2 302 Total assets 5 389 5 312 4 818 Share capital 7 0 2 § Net interest bearing debt at NOK Other equity 2 599 637 968 1.2 billion. Net interest bearing debt Non-controlling interests 38 251 252 to underlying EBITDA ratio of 2.6 at Total equity 2 643 888 1 222 end of quarter Provisions 53 68 56 Non-current liabilities 1 453 2 899 1 950 Total non-current liabilities 1 506 2 967 2 006 § The Group’s financial position is good, with sufficient financial Accounts payables 730 615 496 capacity to execute the current Other current liabilities 510 842 1 093 projects and initiatives Total current liabilities 1 240 1 457 1 589 Total shareholders' equity and liabilities 5 389 5 312 4 818 14

The road ahead Morten Holum, CEO 15