Second quarter 2017 Investor presentation

18 August 2017

1

Content

2

§ 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”

Highlights Q2 2017

3

§ Revenue growth § Stable earnings § High activity in main markets

§ Cost efficiencies and strategic portfolio adjustments

1,597 1,701 1,537 904

1,626

-

500

1,000

1,500

2,000

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying revenue, NOK mill.

152 221

152

(56)

153

-100

-

100

200

300

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying EBITDA, NOK mill.

Stable underlying Group earnings

4

Underlying EBITDA – change quarter-on-quarter Underlying EBITDA margin, rolling 12 months

152 153

100

110

120

130

140

150

160

Q2 16 RS Nordic RS Europe RI Nordic RI Europe Other & elim.

Q2 17

NOK million

Road Safety Road Infrastructure

9.0 % 9.1 % 9.3 % 9.5 % 9.5 %

7.1 % 7.7 % 8.0 %

7.3 % 6.7 %

0%

2%

4%

6%

8%

10%

12%

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

NOK million

Road Safety Road Infrastructure

(7) (3) (7) 10 6

Key developments in the quarter

5

§  High activity in the Nordics, good traction in work zone protection

§  Positive market development in Germany and Poland

§  Export sales picked up in the quarter

§  Large contract of NOK 50 million in Denmark for a full range of road safety solutions in 2017-2019

§  Stable Nordic markets §  Favorable European market conditions,

particularly for EU-financed projects in Poland and in the Baltics

§  Export activities are increasing

§  Reached agreement to divest the Water & Sewage business in Sweden for approximately SEK 90 million

Road Safety Road Infrastructure

6

Results and financials Svein Vestermo, CFO

Overview – Group and business areas

7

Amounts in NOK million

Second quarter 2017 Second quarter 2016 Last 12 m – June 2017 Last 12 m – June 2016

Operating revenues* EBITDA* Margin* Operating

revenues* EBITDA* Margin* Operating revenues* EBITDA* Margin* Operating

revenues* EBITDA* Margin*

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 (15) (9) - (13) (15) - (40) (35) (37) (42) -

Total Group 1 626 153 9.4% 1 597 152 9.5% 5 768 468 8.1% 5 787 448 7.7%

* Underlying figures

Road Safety Nordic – on track

8

§  Sales and earning improvements in signs and work zone protection

§  Margins in road restraint systems were lower than the same quarter last year, but higher than the fourth quarter 2016

§  Lower export volumes of rock support products

§  Lower capacity utilization in the production

2nd quarter Year to date

NOK million 2017 2016 2017 2016

Underlying operating revenue 769

758

1 218

1 198

Underlying EBITDA 86

93

67

71

Underlying EBITA 65

73

25

32

Reported EBITDA 73

93

54

67

Underlying EBITDA margin 11.1 % 12.3 % 5.5 % 5.9 %

93 112

53

(19)

86

-40

-20

-

20

40

60

80

100

120

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying EBITDA, NOK million

Road Safety Europe – solid performance and improved margins

9

§  8% revenue growth adjusted for sale of Limes Mobile

§  Increased sales volume within road restraint systems in Poland and Germany -  Large upfront material sales due to new regime

-  Increased export sales

§  Sales volume positively impacts margins

§  Improved operational efficiencies and supply management

2nd quarter Year to date

NOK million 2017 2016 2017 2016

Underlying operating revenue 368

356

588

575

Underlying EBITDA 38

27

39

22

Underlying EBITA 31

19

27

6

Reported EBITDA 32

27

50

22

Underlying EBITDA margin 10.2 % 7.6 % 6.6 % 3.9 %

27

49 66

1

38

-

10

20

30

40

50

60

70

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying EBITDA, NOK million

Road Infrastructure Nordic – on par with last year

10

§  Decline in total sales -  Lower sales of traded products in Sweden

-  Sales impacted by phasing of projects within technical products year over year

-  Combined sales in Norway, Finland and Denmark on par with last year

§  Earnings and margin on par with last year

§  Agreement to sell water and sewage business in Sweden

2nd quarter Year to date

NOK million 2017 2016 2017 2016

Underlying operating revenue 236

261

371

403

Underlying EBITDA 18

21

10

13

Underlying EBITA 18

20

8

11

Reported EBITDA 18

21

10

13

Underlying EBITDA margin 7.8 % 8.1 % 2.7 % 3.2 %

21 33

5

(9)

18

-20

-10

-

10

20

30

40

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying EBITDA, NOK million

Road Infrastructure Europe – high sales activity

11

§  High sales volumes of plastic pipes in Poland and the Baltics

§  Export sales picked up towards the end of the quarter

§  Earnings and margin negatively impacted by product mix -  Higher share of plastic pipes and water and

sewage products

§  Acquisition of Elikopol in Poland approved in August

2nd quarter Year to date

NOK million 2017 2016 2017 2016

Underlying operating revenue 301

272

426

425

Underlying EBITDA 19

26

1

22

Underlying EBITA 13

19

(11)

9

Reported EBITDA 19

26

1

22

Underlying EBITDA margin 6.5 % 9.6 % 0.3 % 5.2 %

26 36 33

(18)

19

-30

-20

-10

-

10

20

30

40

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17

Underlying EBITDA, NOK million

Profit and loss statement

12

2nd quarter YTD

NOK million 2017 2016 2017 2016

Operating revenue 1 625 1 597 2 546 2 526

Total operating cost (1 539) (1 445) (2 513) (2 427)

EBITDA 86 151 33 99

Depreciation and impairment (37) (40) (74) (80)

EBITA 49 111 (41) 19

Amortisation and impairment (16) (19) (32) (41)

EBIT 33 92 (73) (21)

Net financial income/expense 128 (76) 72 (163)

Income (loss) before tax 161 16 (1) (184)

Income taxes (17) (15) 15 20

Net income (loss) 144 1 13 (165)

Of which non-controlling interests 5 9 (4) 6

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

§  Reported EBITDA of NOK 86 million impacted by transaction costs related to the listing on the Oslo Stock Exchange

§  Increase in financial income mainly explained by debt extinguishment of NOK 139 million

§  Financial expenses impacted by significantly lower level of net interest bearing debt going forward

-400

-200

-

200

400

600

800

1,000

1,200

1,400

Cash per 31.03.17

EBITDA underlying

Non-recurring items

Changes in working capital

Other items Net CF from investment activities

Proceeds from share issue

Net proceeds from borrowings

Other financing activities and fx

Cash per 30.06.17

NO

K m

illio

n Development in cash flow during Q2 2017

13

Cash flow from operations Cash flow from financing activities

102

153

(67)

(212) (18) (48)

1 400

(1 019) (58)

234

Balance sheet

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NOK million 30.06.2017 30.06.2016 31.12.2016

Total intangible assets 1 548 1 878 1 524

Total fixed assets 940 953 934

Other non-current assets 79 54 57

Total non-current assets 2 567 2 884 2 515

Inventories 1 144 1 004 910

Trade receivables 1 076 934 844

Other receivables 366 312 220

Cash and cash equivalents 234 179 329

Total current assets 2 822 2 428 2 302

Total assets 5 389 5 312 4 818

Share capital 7 0 2

Other equity 2 599 637 968

Non-controlling interests 38 251 252

Total equity 2 643 888 1 222

Provisions 53 68 56

Non-current liabilities 1 453 2 899 1 950

Total non-current liabilities 1 506 2 967 2 006

Accounts payables 730 615 496

Other current liabilities 510 842 1 093

Total current liabilities 1 240 1 457 1 589

Total shareholders' equity and liabilities 5 389 5 312 4 818

§  Comprehensive changes in debt and equity during the quarter due to IPO and refinancing

§  Equity ratio at the end of the quarter at a solid 49 % up from 25% at year-end

§  Net interest bearing debt at NOK 1.2 billion. Net interest bearing debt to underlying EBITDA ratio of 2.6 at end of quarter

§  The Group’s financial position is good, with sufficient financial capacity to execute the current projects and initiatives

15

The road ahead Morten Holum, CEO

491 615

2015 2019F

We are executing our strategic agenda

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Grow our business in attractive markets

1

Raise profitability through operational

improvements

2

Optimise the portfolio

3

Road spend is growing in selected Saferoad markets1 (NOK bill.)

1) Source: External market study, Euroconstruct, European Commission; EU Energy, Transport and GHG emissions – Trends to 2050, World Economic Forum – The Global Competitiveness Report 2015–2016, European Transport Safety Council, OECD ¹ Norway, Sweden, Germany, Poland, Lithuania, Romania, Denmark, Finland, UK, Turkey, Hungary, Czech Republic

+6% p.a.

Large, well funded road infrastructure development programs underway in key markets

Leading positions in the most attractive geographies

Moved labour intensive products to our own low cost facility in Poland

Invested in a fully automated production line for lighting columns

Divestment of Water & Sewage business in Sweden to focus on technical products

Acquisition of Elikopol in Poland to strengthening our position in Road Infrastructure in Europe

Short-term outlook

17

Road Safety Road Infrastructure

§  High project tender activity in the Nordics

§  Efficiency measures to gradually impact earnings

§  Underperforming RRS business in Sweden. The Group is launching additional measures

§  Strong demand in the two main markets in Europe, Germany and Poland

§  Competitive situation is tightening

§  The activity in the Nordic markets is high but the pricing environment in Finland has tightened

§  The Polish market remains strong

§  Project activity in the Baltics is increasing

§  Order situation better than a year ago and includes a larger export project

Our medium term financial targets

18

Organic growth

EBITDA margin

Net debt / EBITDA

Dividend policy

~5%

10%

<2.5x

~50%

Saferoad targets ~5% annual revenue growth in the medium-term supported by a healthy market outlook

Potential for additional growth through selected acquisitions to strengthen current strongholds and grow into new segments or geographies

Saferoad targets to develop its underlying EBITDA margin towards 10% in the medium term

Business mix shifts, procurement optimisation, production consolidation and other margin enhancing initiatives expected to have significant positive impact

Saferoad targets a net debt in relation to underlying EBITDA below 2.5x, with some flexibility to handle normal business seasonality

The capital structure should allow the company to explore strategic opportunities, including M&A, while maintain a robust financial position

Saferoad targets dividend payments corresponding to ~50% of underlying net income, with a potential to increase this ratio over time

The dividends should be carefully considered in relation to liquidity position, future cash flow, investment needs as well as strategic opportunities

Summing up

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§  Q2 2017: continued growth and stable earnings

§  Executing the strategy to reach our targets

§  Positive overall market outlook

§  Cost and operational improvement initiatives

§  Portfolio optimisation

Saferoad has been awarded a contract for Fjord Link Frederikssund in Denmark, delivering guardrails, bridge parapets, signage, noise protection, road marking and work zone protection solutions in excess of NOK 50 million in 2017-2019