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CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Terranor is strictly prohibited November 2025 Q3 2025 Investor Presentation
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Terranor Group 2 Today’s presenters The reputable Group Management Team Michael Berglin Group CEO Inka Kontturi Group CFO
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Terranor Group 3 Terranor at a glance The nordic leader in road operations and maintenance Road operations and maintenance Light construction Green construction and maintenance Temporary road safety services ~ 90% ~ 7% ~ 1% ~ 2% • Offer qualified services in road operation and maintenance to ensure that roads remain accessible and functional all year round • The only major private player specialized in road operations and maintenance in the Nordic region • Predominantly serving governmental and municipal entities • T erranor’s hallmarks include timely and high-quality execution of contracted services with high customer satisfaction • Lean flexible overhead structure with a combination of in-house personnel and subcontractors as well as owned and leased equipment • Has gained significant market share since it was established as a stand- alone company while maintaining positive margins Areas of operations 61% 16% 23% Key Figures Q3 2025 Customers Segments Share of revenue YTD 2025 794 Revenue, MSEK 21 Adj. EBITA, MSEK 3% Adj. EBITA margin 10% Revenue growth 62%19% 19% State Municipal Private
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Terranor Group 4 Large, stable Nordic market with high entry barriers Terranor is tapping into a ~76 SEKbn opportunity ~27 ~30 ~14 ~5 ~76 SEKbn Estimated total addressable market size 2024 (SEKbn) Sweden, Finland, Denmark Light constructionRoad O&M Green construction and maintenance Temporary road safety services and traffic management Source: EY-Parthenon market report, National road authorities, desk research, market-based interviews • Well-established in a market with high entry barriers in terms of know-how and human capital • The market is stable and generally supported by long-term structural trends • The Swedish government aims to increase funding for O&M by 48% from 2026 onwards to address the maintenance deficit of 45SEKbn • Long-term contracts, between four and eight years, which provide stable revenue streams with low risk and good visibility • Diligent tender strategy has contributed to a revenue growth rate that by far surpasses the market focusing on profitable contract wins. Maintainance deficit Increased traffic volumes Increased complexity Focus on sustainability Increased safety requirements Key Market drivers
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Terranor Group 5 Q4 Q1 Q2 Q3 Q4 Operational seasonality directly linked to the climate cycle One maintenance year usually span five quarters, starting in Q4 Winter Season • Most contracts starts in Q4 • Q1 primarily consists of base contract volumes, with limited variable and extra work. As a result, there is reduced opportunity to influence margins • Q1 provides stable income through fixed payments Summer Season • Summer season typically has more variable price services and more opportunities to influence on margin • The start of Q3 is impacted by the holiday season, normally resulting in slightly lower revenue compared to Q2 • Margins improve due to performed extra works Winter Season • Finalize extra work for the maintenance year started during prior maintenance year • The highest volumes on extra works are performed during the second half of the year
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Terranor Group 6 Solid growth Diligent tender strategy has contributed to revenue growth that by far surpasses the market • Continued growth in line with plan. Third quarter revenues increased to 794 MSEK (723). • The increase is mainly attributable to new state contracts in Sweden obtained in September 2025. • Newly signed contracts in Sweden totaling 59 MSEK. Won a municipal contract with total value of ~270 MSEK in Denmark in October. 794 Revenue, MSEK 10% Revenue growth +10% >8% Target growth, % Revenue, MSEK Key Figures Q3 2025 0 100 200 300 400 500 600 700 800 900 1 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025
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Terranor Group 7 -1 p.p.21 Adj. EBITA, MSEK >5% Target Adj EBITA m. 3% Adj. EBITA margin Stable underlying earnings Strong underlying profitability parries restructuring in subsidiaries • Strong seasonal profitability from the core business (O&M), especially in Sweden with the ramp-up of five new sites, according to or better than plan. • Ongoing restructuring in Finland and completed restructuring of Swedish subsidiary affect the quarter. • Excluding the subsidiaries, Sweden demonstrates strong profitability and performance well in line and above plan. • Items affecting comparability (27.2 MSEK) in Q3 is related to the IPO process. IPO-related costs are expected to have a minimal impact in Q4. Adj. EBITA, MSEK Key Figures Q3 2025 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025
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Terranor Group 8 Operating Cash Flow, SEK Cash flow fundamentals remain strong One-offs affect cash flow but fundamentals remain strong with low capex needs • The operating cash flow after changes in NWC for the quarter decreased due to lower operating profit, primarily driven by one time items which include primarily IPO-related costs. • Solid financial track record of >20% annual profitable and cash-generative revenue growth with low capex. -28 Operating Cash flow, MSEK Key Figures Q3 2025 -100 000 -50 000 0 50 000 100 000 150 000 200 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025
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Terranor Group 9 124 Revenue, MSEK -1% Adj. EBITA margin Finland Increased revenue from three new contracts started in Q4 2024, but risk reservations and restructuring impacting profitability. Revenue, MSEK Adj. EBITA, MSEK 187 Revenue, MSEK 2% Adj. EBITA margin Denmark Denmark is in transition between closing down all expiring state contracts by year end and then restarting four out of five contracts on new terms in January 2026. Revenue, MSEK Adj. EBITA, MSEK Terranor’s segments Sweden remains as the core growth engine with solid profitability 484 Revenue, MSEK 4% Adj. EBITA margin Sweden Sweden remains as the core growth engine with five new state contracts obtained in September 2025. Revenue, MSEK Adj. EBITA, MSEK Q3 2025 Q3 2025 Q3 2025 Q3 2025 Q3 2025 Q3 2025 0 100 200 300 400 500 600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 0 50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 -4 -2 0 2 4 6 8 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 0 50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 -15 -10 -5 0 5 10 15 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025
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Terranor Group 10 Financial targets On track to meet ambitious growth and profitability targets GROWTH Category PROFITABILITY DIVIDEND LEVERAGE Outcome LTM Q3 2025 8% Revenue growth 3% Adjusted EBITA margin - 1.86x Net debt / LTM adjusted EBITDA Medium-term financial targets >8% Achieve an average annual revenue growth of at least 8% in the medium term >5% Reach an adjusted EBITA margin of more than 5% in the medium term ≥50% Target to distribute at least 50% of consolidated net income <2.5x Net debt / LTM adjusted EBITDA should not exceed 2.5 Category Outcome Q3 2025 Leverage target
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Terranor Group 11 Resilient >70 SEKbn addressable market with plannable revenues and profit margins A highly specialized, Nordic- leading O&M business built for one purpose: Keep the roads open Mid-term targets: growth >8% profitability >5% leverage <2.5x dividend ≥50% Why invest in Terranor Key investment highlights Strongest growth path in the last 3 years among competitors in the industry An entrepreneurial culture enables innovation and adaptability Committed management team and Board of Directors