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CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Terranor is strictly prohibited August 2026 Q2 2026 Investor Presentation
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Terranor Group 2 HeadlineContent Title Today’s presenters The reputable Group Management Team Michael Berglin Group CEO Inka Kontturi Group CFO
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Terranor Group 3 HeadlineContent Title The quarter at a glance Continued strong growth and improved profitability Road operations and maintenance Light construction Green construction and maintenance Temporary road safety services ~ 90% ~ 7% ~ 1% ~ 2% • Strong momentum in Q2 with revenue growth of 23% (12) driven by ramp-up of new contracts and significantly higher activity • Improved profitability, with an adjusted EBITA margin of 2.6% (2.0), reflecting underlying profitability and continued operational improvements • Order backlog reached a new all-time high of SEK 7.3bn (6.0) • Positive development across all segments with new municipal contracts in Finland and the new Danish contract portfolio contributing to higher revenue and improved profitability © Microsoft, OpenStreetMap Powered by Bing Areas of operations 62% 17% 21% Q2 2026 Customers Segments Share of revenue FY2025 1 041 (849) Revenue, MSEK 27 (17) Adj. EBITA, MSEK 2.6% (2.0) Adj. EBITA margin 23% (12) Revenue growth 69% 17% 14% State Municipal Private
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Terranor Group 4 HeadlineContent Title • 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 • 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 Market outlook Large, stable Nordic market with high entry barriers Source: National road authorities, desk research, market-based interviews Maintainance deficit Increased traffic volumes Increased complexity Focus on sustainability Increased safety requirements Key Market drivers Broad political initiatives expected to drive growth: ✓ National plan for transport infrastructure allocating SEK 1 171 bn 2026-2037. Expected increase in road O&M funding of 48% from 2026 onwards to address the maintenance deficit ✓ Agreement of infrastructure investments totaling more than SEK 232 bn (DDK 160 bn) through to 2035 ✓ The Transport 12 Plan includes more than SEK 217 bn (EUR 20 bn) in funding for basic transport infrastructure management in 2026– 2037
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Terranor Group 5 HeadlineContent Title 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 22% 24% 23% 32% Q1 Q2 Q3 Q4 Share of annual revenue, average per quarter1 1.6% 2.2% 2.5% 4.3% Q1 Q2 Q3 Q4 EBITA margin2, average per quarter3 1) Referring to average share of annual revenue for respective quarter between 2023-2025. 2) Adj. EBITA in relation to revenue. 3) Referring to average EBITA margin for respective quarter between 2023-2025. 4)Average adj. operating cash flow per quarter between 2023-2025. 52 -32 3 174 Q1 Q2 Q3 Q4 Average adj. operating cash flow per quarter4 (MSEK)
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Terranor Group 6 HeadlineContent Title Solid growth Diligent tender strategy contributed to a strong order intake and significant revenue growth • Revenue of 1 041 MSEK in Q2 (+23%) exceeding medium-term growth target (>8%) • Growth driven by ramp-up of new contracts and significantly higher activity across the existing contract portfolio • Order backlog reached record-high SEK 7.3bn, providing strong visibility for future activity • Increasing demand for additional works and improvement measures as winter operations transitioned into summer season 1 041 (849) Revenue, MSEK 23% (12) Revenue growth +23% >8% Target growth, % Revenue, MSEK Q2 2026 0 200 400 600 800 1 000 1 200 1 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026
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Terranor Group 7 HeadlineContent Title 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0 10 000 20 000 30 000 40 000 50 000 60 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026 +0.6 p.p. 27 (17) Adj. EBITA, MSEK >5% Target Adj EBITA m. 2.6% (2.0) Adj. EBITA margin Stable underlying earnings Profitability in line with the seasonal pattern of the business • Adjusted EBITA increased 61% to 27.2 MSEK (16.9), with an adjusted EBITA margin of 2.6% (2.0) • Improvement reflects higher EBITA contributions in Sweden and Denmark, led by Sweden on strong revenue growth and margin expansion • Items affecting comparability amounted to 0.8 MSEK (31.5), primarily relating to legal fees in Finland Adj. EBITA, MSEK Q2 2026 Adj. EBITA, %
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Terranor Group 8 HeadlineContent Title Adjusted Operating Cash Flow, SEK Cash Generation Continued focus on disciplined cash management and a low capital intensity profile • Adjusted operating cash flow increased to 20.0 MSEK (4.6), supported by stronger underlying profitability • Cash flow from operating activities was -23.7 MSEK (-29.1) as net working capital increased with strong revenue growth • Net debt / LTM adjusted EBITDA was -1.97x, comfortably within the <2.5x financial target 20 (5) Adj. Operating Cash flow, MSEK Q2 2026 -50 000 0 50 000 100 000 150 000 200 000 250 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 2026
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Terranor Group 9 HeadlineContent Title 0.2% (0.5) Adj. EBITA margin Finland Strategic tender activity in Finland, with SEK 419 million in new contracts secured during H1 2026. Revenue, MSEK Adj. EBITA, MSEK 2.9% (2.7) Adj. EBITA margin Denmark Strong development driven by the ramp- up of new contracts and improved performance across the contract portfolio. Revenue, MSEK Adj. EBITA, MSEK Terranor’s segments Sweden and Denmark performing above growth targets with solid profitability 669 (507) Revenue, MSEK 3.2% (2.2) Adj. EBITA margin Sweden Strong tender momentum continued, with a record-high backlog providing visibility through 2030. Revenue, MSEK Adj. EBITA, MSEK Q2 2026 Q2 2026 Q2 2026 Q2 2026 Q2 2026 Q2 2026 32% (19) Revenue growth 160 (154) Revenue, MSEK 4% (18) Revenue growth 213 (188) Revenue, MSEK 13% (-5) Revenue growth 0 200 400 600 800 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 0 10 20 30 40 50 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 0 50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 -2 -1 -1 0 1 1 2 2 3 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 0 50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 -4 -2 0 2 4 6 8 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026
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Terranor Group 10 HeadlineContent Title Financial targets On track to meet ambitious growth and profitability targets GROWTH Category PROFITABILITY DIVIDEND LEVERAGE Outcome LTM Q2 2026 22% Revenue growth 2.9% Adjusted EBITA margin - 1.97x 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 Q2 2026 Leverage target Outcome FY 2025 14% Revenue growth 2.7% Adjusted EBITA margin 1.50 SEK 1.50x Net debt / LTM adjusted EBITDA Outcome FY 2025
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Terranor Group 11 HeadlineContent Title Resilient and growing 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 growth, innovation and adaptability Committed management team and Board of Directors