Market announcement

Title

2024 IV quarter and 12 months consolidated interim report (unaudited)

Message

The  year  2024 was  successful  for  the Nordecon Group. Profitability improved
significantly,  and revenue  increased. The  general contracting  market remains
highly  competitive, and developers' confidence is low. No change is expected in
the  volume of public sector orders  for the consecutive year. Consequently, the
group  does not  foresee significant  growth in  investments or the construction
market in 2025.
The group's gross profit margin in 2024 was 7.5% (2023: 2.0%), and in the fourth
quarter,  it  reached  9% (Q4  2023: (1)%).  The  group's net profit amounted to
EUR5,162  thousand (2023: a  loss from continuing  operations of EUR6,418 thousand).
Profitability  improved significantly  in both  the Buildings and Infrastructure
segments.
Revenue  for 2024 was  EUR223,925 thousand,  which is  20% higher compared  to the
revenue  from  continuing  operations  in  the  previous  year.  Revenue  in the
Buildings  segment increased by 36%, while revenue in the Infrastructure segment
decreased  by 25%. The revenue growth aligns  with the group's project portfolio
volume, as do the changes across segments. The revenue increase in the buildings
segment  was primarily  driven by  higher revenue  from public  buildings. Major
projects  in 2024 included Saku Upper Secondary School, Loodusmaja (Nature Hub),
and  various  projects  for  the  Centre  for Defence Investment. The decline in
infrastructure  segment  revenue  was  mainly  due  to  delays  in  the start of
contractual  work  for  Rail  Baltica  and  reduced  investment volumes from the
Transport Administration.
As  of 31 December  2024, the order  book of  the group's  companies amounted to
EUR209,489  thousand.  Compared  to  the  same  period  last  year,  the volume of
outstanding  work has  decreased by  3%, but it  still provides a solid starting
position  for  2025. Over  12 months,  new  contracts  worth a total of EUR181,437
thousand  were  signed,  of  which  EUR49,636  thousand  were signed in the fourth
quarter.

Condensed consolidated interim statement of financial position

 EUR'000                                        31 December 2024 31 December 2023
-------------------------------------------------------------------------------
 ASSETS

 Current assets

 Cash and cash equivalents                               8,195           11,892

 Trade and other receivables                            29,449           37,010

 Prepayments                                             3,543            1,789

 Inventories                                            28,091           25,879

 Total current assets                                   69,278           76,570

 Non-current assets

 Other investments                                          77               76

 Trade and other receivables                            10,681            9,113

 Investment property                                     5,517            5,517

 Property, plant and equipment                          13,247           14,292

 Intangible assets                                      14,951           14,964

 Total non-current assets                               44,473           43,962

 TOTAL ASSETS                                          113,751          120,532



 LIABILITIES

 Current liabilities

 Borrowings                                             12,626           10,188

 Trade payables                                         36,735           39,797

 Other payables                                         10,344            9,299

 Deferred income                                        12,472           20,602

 Provisions                                              1,333            1,129

 Total current liabilities                              73,510           81,015

 Non-current liabilities

 Borrowings                                              5,720            8,563

 Trade payables                                          5,091            6,011

 Other payables                                            462                0

 Provisions                                              2,364            2,405

 Total non-current liabilities                          13,637           16,979

 TOTAL LIABILITIES                                      87,147           97,994



 EQUITY

 Share capital                                          14,379           14,379

 Own (treasury) shares                                   (660)            (660)

 Share premium                                             635              635

 Statutory capital reserve                               2,554            2,554

 Translation reserve                                     4,034            3,786

 Retained earnings                                       4,746              919

 Total equity attributable to owners of the
 parent                                                 25,688           21,613

 Non-controlling interests                                 916              925

 TOTAL EQUITY                                           26,604           22,538

 TOTAL LIABILITIES AND EQUITY                          113,751          120,532

Condensed consolidated interim statement of comprehensive income

 EUR'000                                   Q4 2024  12M 2024  Q4 2023  12M 2023
------------------------------------------------------------------------------
 Revenue                                  45,203   223,925   55,665   186,464

 Cost of sales                          (41,200) (207,155) (56,167) (182,655)

 Gross profit (loss)                       4,003    16,770    (502)     3,809



 Marketing and distribution expenses        (121     (422)     (95)     (497)

 Administrative expenses                 (2,867)   (7,878)  (2,227)   (6,564)

 Other operating income                      141       286       46       286

 Other operating expenses                   (67)     (695)    (156)     (465)

 Operating profit (loss)                   1,089     8,061  (2,934)   (3,431)



 Finance income                              241       678      346       613

 Finance costs                             (386)   (3,011)  (1,058)   (3,356)

 Net finance costs                         (145)   (2,333)    (712)   (2,743)





 Profit (loss) before tax                    944     5,728  (3,646)   (6,174)

 Income tax expense                        (326)     (563)        0     (244)

 Profit (loss) for the period from
 continuing operations                       618     5,165  (3,646)   (6,418)

 Profit for the period from a
 discontinued operation                        -         -    6,066     8,474

 Profit for the period                       618     5,165    2,420     2,056



 Other comprehensive income (expense)
 Items that may be reclassified
 subsequently to
 profit or loss

 Exchange differences on translating
 foreign operations                        (254)       248      518       470

 Total other comprehensive income
 (expense)                                 (254)       248      518       470

 TOTAL COMPREHENSIVE INCOME                  364     5,413    2,938     2,526



 Profit (loss) attributable to:

 - Owners of the parent                      454     3,827    1,510     (942)

 - Non-controlling interests                 164     1,338      910     2,998

 Profit for the period                       618     5,165    2,420     2,056



 Comprehensive income (expense)
 attributable to:

 - Owners of the parent                      200     4,075    2,028     (472)

 - Non-controlling interests                 164     1,338      910     2,998

 Comprehensive income for the period         364     5,413    2,938     2,526



 Earnings per share from continuing
 operations attributable to owners of
 the parent:

 Basic earnings per share (EUR)               0.01      0.12   (0.15)      (0.31)

 Diluted earnings per share (EUR)             0.01      0.12   (0.15)      (0.31)



 Earnings per share from a discontinued
 operation attributable to owners of
 the parent:

 Basic earnings per share (EUR)                  -         -     0.20        0.28

 Diluted earnings per share (EUR)                -         -     0.20        0.28

Condensed consolidated interim statement of cash flows

 EUR'000                                                  12M 2024  12M 2023
--------------------------------------------------------------------------
 Cash flows from operating activities

 Cash receipts from customers                            273,153   345,372

 Cash paid to suppliers                                (243,445) (294,828)

 VAT paid                                                (9,272)  (12,337)

 Cash paid to and for employees                         (19,964)  (24,715)

 Income tax paid                                           (237)     (615)

 Net cash from operating activities                          235    12,877



 Cash flows from investing activities

 Paid for acquisition of property, plant and equipment     (328)     (362)

 Proceeds from sale of property, plant and equipment         319       431

 Sale of subsidiary, net cash flow                             0     (970)

 Loans provided                                             (36)     (531)

 Repayments of loans provided                                  5        22

 Dividends received                                            6        12

 Interest received                                           307        50

 Net cash from (used in) investing activities                273   (1,348)



 Cash flows from financing activities

 Proceeds from loans received                              1,896     1,197

 Repayments of loans received                            (1,633)   (2,291)

 Lease payments                                          (2,220)   (3,060)

 Interest paid                                             (990)   (1,232)

 Dividends paid                                          (1,347)   (1,494)

 Other payments                                              116         6

 Net cash used in financing activities                   (4,178)   (6,874)



 Net cash flow                                           (3,670)     4,655



 Cash and cash equivalents at beginning of period         11,892     7,238

 Effect of movements in foreign exchange rates              (27)       (1)

 Change in cash and cash equivalents                     (3,670)     4,655

 Cash and cash equivalents at end of period                8,195    11,892

Financial review

Financial performance

Nordecon  delivered a  gross profit  of EUR16,770  thousand in  2024 (2023: EUR3,809
thousand).  The group's gross margin  improved significantly, rising to 7.5% for
the   year   (2023:   2.0%) and  9% for  the  fourth  quarter  (Q4  2023: (1)%).
Profitability  improved for  both operating  segments. The  gross margin  of the
Buildings  segment was 8.9% for the year and 10.7% for the fourth quarter (2023:
3.0% and  Q4 2023: (0.3)%). The Infrastructure segment's gross margin was lower,
reaching  4.0% for the year and (0.3)% for the fourth quarter (2023: 1.3% and Q4
2023: (0.6)%).  The margin improvement was supported by better mitigation of the
risks  associated with general contracting and the expiry in 2023 of a number of
long-term  contracts signed before the war,  which had been severely affected by
the  previous  years'  surge  in  input  prices. The improved performance of the
Infrastructure  segment  is  partly  due  to  the  investment made in an asphalt
concrete  plant in early 2024, which  has reduced the cost  price of the product
and represents a major step forward in material recycling.
The   group's   administrative   expenses   for   2024 were   EUR7,878   thousand.
Administrative  expenses increased by around  20% compared to 2023 (2023: EUR6,564
thousand).  The  rise  resulted  from  staff  costs,  which increased due to the
recognition  of provisions for performance-based remuneration in connection with
the  group's results for  2024. The ratio of  administrative expenses to revenue
(12 months rolling) was 3.5% (2023: 3.5%).
The  group  ended  2024 with  an  operating  profit of EUR8,061 thousand (2023: an
operating  loss of EUR3,431 thousand). EBITDA  for the period was EUR11,025 thousand
and  EBITDA margin was 4.9% (2023: negative EBITDA of EUR412 thousand and negative
EBITDA margin of 0.2%).
The  group's finance income and costs are affected by exchange rate fluctuations
in  the group's foreign markets, particularly  movements in the exchange rate of
the  Ukrainian hryvnia. In 2024, the Ukrainian hryvnia weakened against the euro
by  around 4% and the translation of the loans provided to the group's Ukrainian
subsidiaries  in euros into the  local currency gave rise  to a foreign exchange
loss  of EUR247 thousand (2023:  a foreign exchange loss  of EUR480 thousand). Total
exchange losses for the year were EUR258 thousand (2023: EUR480 thousand).
The  group's net  profit for  2024 was EUR5,165  thousand (2023:  a loss of EUR6,418
thousand). The net profit attributable to owners of the parent, Nordecon AS, was
EUR3,827 thousand (2023: a net loss of EUR942 thousand).

Cash flows

Operating  activities produced a net cash inflow of EUR235 thousand in 2024 (2023:
an  inflow of EUR12,877  thousand). Operating cash  flow is strongly influenced by
the fact that the contracts signed with most public and private sector customers
do  not  require  them  to  make  advance  payments, while the group has to make
prepayments  to  subcontractors  and  materials  suppliers.  Cash inflow is also
reduced  by contractual retentions,  which extend from  5 to 10% of the contract
price and are released at the end of the construction period only.
Investing  activities  of  the  period  resulted  in  a  net cash inflow of EUR273
thousand  (2023: an outflow of EUR1,348  thousand). Investments in property, plant
and equipment totalled EUR328 thousand (2023: EUR362 thousand) and proceeds from the
sale  of property,  plant and  equipment amounted  to EUR319  thousand (2023: EUR431
thousand).  Loans provided  amounted to  EUR36 thousand  (2023: EUR531 thousand) and
interest  received amounted to EUR307 thousand (2023: EUR50 thousand). The cash flow
for  2023 was influenced by the sale of the subsidiary Nordecon Betoon OÜ, which
resulted in a net cash outflow of EUR970 thousand.
Financing  activities generated a net cash  outflow of EUR4,178 thousand (2023: an
outflow of EUR6,874 thousand). The largest items were related to loans and leases.
Proceeds   from  loans  received  amounted  to  EUR1,896  thousand  (2023:  EUR1,197
thousand),  consisting  of  the  use  of  development loans. Repayments of loans
received totalled EUR1,633 thousand (2023: EUR2,291 thousand), consisting of regular
repayments  of long-term investment and development  loans and the change in the
overdraft  balance. Lease payments were EUR2,220 thousand (2023: EUR3,060 thousand).
Dividends paid in 2024 amounted to EUR1,347 thousand (2023: EUR1,494 thousand).
The  group's cash and cash equivalents as at 31 December 2024 amounted to EUR8,195
thousand (31 December 2023: EUR11,892 thousand).

Key financial figures and ratios

 Figure/ratio                                        2024       2023       2022
-------------------------------------------------------------------------------
 Revenue (EUR'000)*                                 223,925    186,464    220,285

 Revenue change*                                    20.1%    (15.4)%       2.6%

 Net profit (loss) (EUR'000)*                         5,165    (6,418)    (4,099)

 Net  profit (loss) attributable  to owners of
 the parent (EUR'000)                                 3,827      (942)    (3,650)

 Average number of shares                      31,528,585 31,528,585 31,528,585

 Earnings per share (EUR)                              0.12     (0.03)     (0.12)

 Administrative expenses to revenue*                 3.5%       3.5%       2.6%

 EBITDA (EUR'000)*                                   11,025      (412)      2,791

 EBITDA margin*                                      4.9%     (0.2)%       1.3%

 Gross margin*                                       7.5%       2.0%       1.8%

 Operating margin*                                   3.6%     (1.8)%     (0.2)%

 Operating   margin  excluding  gain  on  non-
 current asset sales*                                3.5%     (2.0)%     (0.4)%

 Net margin*                                         2.3%     (3.4)%     (1.9)%

 Return on invested capital                         15.6%       8.0%     (0.5)%

 Return on equity                                   21.0%       8.3%     (5.2)%

 Equity ratio                                       23.4%      18.7%      19.8%

 Return on assets                                    4.4%       1.6%     (1.1)%

 Gearing                                            22.6%      16.6%      32.0%

 Current ratio                                       0.94       0.95       0.88



 At 31 December                                      2024       2023       2022

 Order book (EUR'000)*                              209,489    216,732    127,618

* Continuing operations

Due  to the sale of Nordecon Betoon OÜ  and NOBE Rakennus OY at the beginning of
December  2023, the  comparative  figures  for  2023 and  2022 only  include the
results  of the continuing operations. The results of the discontinued operation
for  the  comparative  periods  are  presented  separately  in  the consolidated
statement   of  comprehensive  income  within  Profit  for  the  period  from  a
discontinued operation.

Performance by geographical market

Revenue generated outside Estonia, in Ukraine, accounted for approximately 2% of
the  group's  total  revenue  in  2024. The  volume  of our Ukrainian operations
remained  comparable  to  the  previous  year.  During  the  period, we provided
services  under contracts for the reconstruction of substations and installation
of  associated physical protection  systems in the  Poltava, Zhytomyr, Volyn and
Ivano-Frankivsk  oblasts in  Ukraine, and  for the  reconstruction of a building
into  an apartment complex for internally  displaced persons in Ovruch, Zhytomyr
Oblast,  Ukraine.  Nordecon  did  not  generate  any  revenue and had no ongoing
construction  contracts in the Swedish market.  With the sale of Nordecon Betoon
OÜ  at the beginning of December 2023, the  group also withdrew from the Finnish
market, where it had been operating through Nordecon Betoon OÜ's subsidiary NOBE
Rakennus OY. The group was active on a project basis in Latvia and Lithuania.

              2024   2023   2022
---------------------------------
  Estonia      98%    97%    97%

  Ukraine       2%     2%     1%

  Finland        -     1%     0%

  Lithuania      -     0%     2%

  Latvia         -     0%     1%

Performance by business line

Segment revenues

We  strive to maintain a balance between  the revenues of our two main operating
segments  (Buildings and Infrastructure) as far as market developments allow, as
this  helps  diversify  risks  and  provides  better  opportunities  to continue
construction  activities in more challenging market conditions, where volumes in
one subsegment decline sharply while volumes in another subsegment start to grow
more rapidly.
The  group's revenue  for 2024 was  EUR223,925 thousand,  approximately 20% higher
than  in  2023, when  revenue  from  continuing  operations amounted to EUR186,464
thousand.  The Buildings segment generated revenue  of EUR187,573 thousand and the
Infrastructure  segment revenue  of EUR36,299  thousand. The corresponding figures
for  2023 were EUR138,134 thousand and EUR48,263  thousand. Revenue generated by the
Buildings   segment   increased   by   36%, while   revenue   generated  by  the
Infrastructure  segment  decreased  by  25%. Revenue  growth  and changes in the
performance  of the two reportable  segments were expected and  in line with the
group's order book. Revenue growth in the Buildings segment was driven by higher
revenue  in  the  public  buildings  subsegment.  The decrease in revenue in the
Infrastructure segment was mainly due to delays in the start of work on the Rail
Baltica contracts and reduced investment by the Transport Administration.

  Revenue by operating segment   2024   2023   2022
--------------------------------------------------------
  Buildings                       84%    74%    84%

  Infrastructure                  16%    26%    16%

Subsegment revenues

In  the  Buildings  segment,  revenue  from  the public buildings and commercial
buildings subsegments increased by 80% and 72%, respectively, while revenue from
the  industrial and warehouse facilities  subsegment and the apartment buildings
subsegment  decreased compared to the previous year. As the revenue contribution
of  the  industrial  and  warehouse  facilities  subsegment  was  also modest in
previous  years, its revenue decline did not  have a significant impact on total
segment  revenue. However, revenue from  the apartment buildings subsegment fell
by  57%, mainly  due  to  lower  construction  services  revenue, reflecting the
current market situation in this subsegment.
The  period's  largest  projects  in  the  public  buildings subsegment were the
construction  of the main building of the Estonian Internal Security Service and
Loodusmaja  (Nature Hub)  in Tallinn,  the design  and construction of warehouse
complexes  for  the  Centre  for  Defence  Investment  in  Luunja  and Nõo rural
municipalities   in  Tartu  County  and  in  Ida-Viru  County,  the  design  and
construction  of a new  study and sports  building for the  Saku Upper Secondary
School near Tallinn, the reconstruction of the building of the Karlova School in
Tartu  and the design  and construction of  a study building  for the Centre for
Defence Investment on the Raadi campus in Tartu.
Revenue  generated by  the apartment  buildings subsegment  consisted of revenue
from  the construction of the commercial  and residential complex Vektor and the
group's  own development projects.  Revenue from our  own development activities
decreased  compared to the previous year  and was EUR7,685 thousand (2023: EUR10,273
thousand). The figure includes revenue from the sale of apartments in Tartu - in
the   Mõisavahe   Kodu   housing   estate   and  the  centrally  located  Emajõe
Residents housing    estate    on    the    banks    of    the   Emajõgi   river
(https://emajoeresidents.ee).  We  continued  to  build  phase  1 of the Seileri
Kvartal  housing estate  in Pärnu  (https://seileri.ee) and  the Tammepärja Kodu
housing  estate in the Tammelinn  district in Tartu (https://tammelinn.ee). Both
development  projects will be  completed in the  first half of 2025. In carrying
out  our own development activities, we carefully monitor potential risks in the
housing development market.
The  largest ongoing  projects in  the commercial  buildings subsegment were the
construction  of the commercial and residential complex Vektor and the LEED Gold
compliant  Golden Gate  office building  at Ahtri  6 in Tallinn,  the design and
construction  of a commercial building at Nõlvakaare 4 at Raadi in Tartu County,
and the construction of a Lidl store in Võru.
A  significant share  of the  revenue generated  by the industrial and warehouse
facilities   subsegment   came   from  the  reconstruction  of  substations  and
installation of associated physical protection systems in the Poltava, Zhytomyr,
Volyn and Ivano-Frankivsk oblasts in Ukraine.

  Buildings segment                     2024   2023   2022
-----------------------------------------------------------
  Public buildings                       70%    37%    30%

  Commercial buildings                   21%    23%    24%

  Apartment buildings                     6%    27%    28%

  Industrial and warehouse facilities     3%    13%    18%

The  largest  revenue  contributor  in  the  Infrastructure segment was the road
construction  and maintenance subsegment whose  revenue decreased by around 22%
compared  to  the  previous  year.  A  major  share of its revenue came from the
construction  of an armoured manoeuvre shooting range and roads in Harju County,
the  reconstruction of the Mäeküla-Koeru-Kapu  road section, the construction of
the  Tagadi  ecoduct  (wildlife  crossing)  on  the  Rail  Baltica route and the
provision of road maintenance services in Järva County.

  Infrastructure segment                  2024   2023   2022
-------------------------------------------------------------
  Road construction and maintenance        90%    63%    78%

  Other engineering                        10%    30%    20%

  Specialist engineering                    0%     0%     2%

  Environmental engineering                 0%     7%     0%

Order book

The group's order book (backlog of contracts signed but not yet performed) as at
31 December 2024 stood  at EUR209,489 thousand.  Compared to the  end of 2023, the
order  book has  decreased by  around 3%. In  2024, we signed  new contracts for
EUR181,437  thousand,  of  which  EUR49,636  thousand  in  the fourth quarter (2023:
EUR276,901 thousand and Q4 2023: EUR85,575 thousand).
In  terms of  the breakdown  of the  order book  between the  two main operating
segments,  the share of the Infrastructure segment has increased compared to the
end  of last year. The Buildings segment accounts for 82% and the Infrastructure
segment  for  18% of  the  group's  order  book  (31 December 2023: 96% and 4%,
respectively). The order book of the Buildings segment includes mainly contracts
secured in the commercial and public buildings subsegments. Public investment in
building  construction  has  declined  overall,  with  some  activity  at  local
government level. The stabilisation of construction input prices and the decline
in  interest  rates  have  not  yet  significantly  boosted  private investment.
Compared  to  31 December  2023, the  order  book  of  the Buildings segment has
declined  by 17% and  the order  book of  the Infrastructure  segment has almost
quadrupled, mainly due to the award of a Rail Baltica contract.

  At 31 December           2024      2023      2022
----------------------------------------------------
  Order book (EUR'000)*   209,489   216,732   127,618

*Continuing operations

Major contracts secured in 2024 include:

  * the construction of an armoured manoeuvre shooting range and roads for the
    Centre for Defence Investment in Harju County with an approximate cost of
    EUR5,450 thousand;
  * the construction of a modern war and disaster medicine centre for the Centre
    for Defence Investment in Tartu with an approximate cost of EUR15,000 thousand
    (the group is one of the joint bidders);
  * the construction of a Lidl store in Võru with an approximate cost of EUR3,900
    thousand;
  * the construction of a platform area for Class E aircraft at Tallinn Airport
    with an approximate cost of EUR7,500 thousand;
  * the construction of a building complex in the Port Athena quarter at Väike-
    Turu 7 in Tartu (the complex consists of four six-storey buildings, one
    seven-storey building and a common basement level used mainly for parking)
    with an approximate cost of EUR26,000 thousand;
  * the construction of the Hagudi-Alu section of stage III of the Rail Baltica
    Raplamaa main line railway infrastructure with an approximate cost of
    EUR30,500 thousand;
  * the construction of the LEED Gold standard Uusküla spa hotel on the northern
    shore of Lake Peipus in Alutaguse rural municipality with an approximate
    cost of EUR28,300 thousand;
  * the reconstruction of a building into an apartment complex for internally
    displaced persons in Ovruch, Zhytomyr Oblast, Ukraine with an approximate
    cost of EUR1,800 thousand;
  * the construction of a new television building for Estonian Public
    Broadcasting in Tallinn with an approximate cost of EUR40,100 thousand;
  * the renovation of the Tallinn Art Hall building at Vabaduse 6/8 in Tallinn
    with an approximate cost of EUR7,990 thousand.

Based  on the size of the order book and the general outlook for the economy and
the  construction  market,  the  group's  management expects business volumes in
2025 to  remain broadly at  the same level  as in 2024. In  a highly competitive
environment,  we have  avoided taking  unjustified risks  that could materialise
during  the contract execution  phase and adversely  affect the group's results.
The  main  focus  is  on  managing  fixed  costs,  increasing  productivity  and
effectively  executing pre-construction  and design  activities to  leverage our
professional competitive advantages.

People

Employees and staff costs

The  average number  of the  group's employees  (at the  parent company  and the
subsidiaries)   in   2024 was   435, including   281 engineers   and   technical
professionals  (ETP). Headcount decreased by around 22% compared to the previous
year.  The decline in the number of staff was influenced by the restructuring of
the  Infrastructure  segment,  which  was  completed  in  2023, and  the sale of
Nordecon Betoon OÜ and NOBE Rakennus OY at the beginning of December 2023.

Average  number  of  employees  at  group  companies (the parent company and the
subsidiaries):

                  2024   2023   2022
-------------------------------------
  ETP              281    374    432

  Workers          154    184    226

  Total average    435    558    658

The  group's staff  costs for  2024, including all  taxes, were EUR24,170 thousand
compared  with  EUR19,637  thousand  for  continuing  operations in 2023. The main
growth  drivers were performance-based compensation,  which increased due to the
group's improved performance, and salary increases.

Remuneration of the council and the board
In  2024, the service fees of the members of the council of Nordecon AS totalled
EUR199  thousand and the related social  security charges amounted to EUR66 thousand
(2023: EUR179 thousand and EUR59 thousand, respectively).
During  the period, the  group recognised a  liability for the performance-based
compensation  of the members of the council  of EUR198 thousand (2023: EUR0) and the
related social security charges of EUR65 thousand. Of the liability, EUR125 thousand
will  be paid  out in  2025 and the  payment of  the remainder  is linked to the
achievement of the targets for 2025.
The  service  fees  of  the  members  of  the board of Nordecon AS totalled EUR524
thousand  and  the  related  social  security  charges amounted to EUR173 thousand
(2023: EUR775 thousand and EUR255 thousand, respectively). The fees for 2023 include
benefits  of  EUR222  thousand  paid  in  connection  with the expiry of a service
contract of a member of the board.
During  the period, the  group recognised a  liability for the performance-based
compensation  of the members  of the board  of EUR741 thousand  (2023: EUR0) and the
related  social  security  charges  of  EUR245  thousand.  Of  the liability, EUR467
thousand  will be paid out in 2025 and the payment of the remainder is linked to
the achievement of the targets for 2025.

Labour productivity and labour cost efficiency

We  measure  the  efficiency  of  our  operating  activities using the following
productivity  and  efficiency  indicators,  which  are  based  on  the number of
employees and the staff costs incurred:

                                                     2024      2023     2022
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  Nominal labour productivity (rolling), (EUR'000)    514.3     499.3    490.4

  Change against the comparative period, %           3.0%      1.8%    16.5%



  Nominal labour cost efficiency (rolling), (EUR)       9.3      10.3     11.8

  Change against the comparative period, %         (9.7)%   (13.4)%   (2.9)%

The group's nominal labour productivity increased compared to the previous year,
mainly  due  to  a  decrease  in  the  number  of  staff. Labour cost efficiency
decreased due to a decline in revenue.

Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: [email protected] (mailto:[email protected])
www.nordecon.com (http://www.nordecon.com)