Market announcement

Title

2019 first quarter consolidated interim report (unaudited)

Message

This  announcement includes Nordecon AS's  consolidated financial statements for
the  first quarter of  2019 (unaudited), overview of  the key events influencing
the  period's financial  result, outlook  for the  market and description of the
main risks.

Interim  report is attached to the announcement  and is also published on NASDAQ
Tallinn and Nordecon's web page (http://www.nordecon.com/for-investor/financial-
reports/interim-reports).

Period's  investor presentation  are attached  to the  announcement and are also
published on Nordecon's web page (http://www.nordecon.com/for-investor/investor-
presentations).

Condensed consolidated interim statement of financial position

 EUR '000
 As at                                           31 March 2019 31 December 2018
-------------------------------------------------------------------------------
 ASSETS

 Current assets

 Cash and cash equivalents                               5,391            7,678

 Trade and other receivables                            27,904           31,627

 Prepayments                                             1,700            1,383

 Inventories                                            23,692           20,444

 Total current assets                                   58,687           61,132

 Non-current assets

 Investments in equity-accounted investees               1,734            2,266

 Other investments                                          26               26

 Trade and other receivables                             8,285            8,225

 Investment property                                     5,526            5,526

 Property, plant and equipment                          16,164           12,288

 Intangible assets                                      14,675           14,674

 Total non-current assets                               46,410           43,005

 TOTAL ASSETS                                          105,097          104,137



 LIABILITIES

 Current liabilities

 Borrowings                                             17,318            9,374

 Trade payables                                         32,226           34,954

 Other payables                                          7,013            5,187

 Deferred income                                         3,650            3,932

 Provisions                                                529            1,013

 Total current liabilities                              60,736           54,460


 Non-current liabilities

 Borrowings                                             11,203           14,830

 Trade payables                                             98               98

 Other payables                                            177               71

 Provisions                                              1,111              969

 Total non-current liabilities                          12,589           15,968

 TOTAL LIABILITIES                                      73,325           70,428



 EQUITY

 Share capital                                          16,321           16,321

 Own (treasury) shares                                    -693             -693

 Share premium                                             618              618

 Statutory capital reserve                               2,554            2,554

 Translation reserve                                     1,948            1,992

 Retained earnings                                       8,934           10,896

 Total equity attributable to owners of the
 parent                                                 29,682           31,688

 Non-controlling interests                               2,090            2,021

 TOTAL EQUITY                                           31,772           33,709

 TOTAL LIABILITIES AND EQUITY                          105,097          104,137

Condensed consolidated interim statement of comprehensive income

 EUR '000                                              Q1 2019 Q1 2018     2018
-------------------------------------------------------------------------------
 Revenue                                                34,524  43,662  223,496

 Cost of sales                                         -34,478 -43,209 -213,463

 Gross profit                                               46     453   10,033



 Marketing and distribution expenses                      -346    -173     -626

 Administrative expenses                                -1,493  -1,671   -6,725

 Other operating income                                     56      17    1,471

 Other operating expenses                                  -13     -77     -122

 Operating loss/profit                                  -1,750  -1,451    4,031



 Finance income                                            271     135      431

 Finance costs                                            -364    -304     -909

 Net finance costs                                         -93    -169     -478



 Share of loss/profit of equity-accounted investees        -50     -63      835



 Loss/profit before income tax                          -1,893  -1,683    4,388

 Income tax expense                                          0    -200     -567

 Loss/profit for the period                             -1,893  -1,883    3,821



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

 Exchange differences on translating foreign
 operations                                                -44      68       -3

 Total other comprehensive expense/income                  -44      68       -3

 TOTAL COMPREHENSIVE EXPENSE/ INCOME                    -1,937  -1,815    3,818



 Loss/profit attributable to:

 - Owners of the parent                                 -1,962  -1,806    3,381

 - Non-controlling interests                                69     -77      440

 Loss/profit for the period                             -1,893  -1,883    3,821



 Total comprehensive expense/income attributable to:

 - Owners of the parent                                 -2,006  -1,738    3,378

 - Non-controlling interests                                69     -77      440

 Total comprehensive expense/income for the period      -1,937  -1,815    3,818



 Earnings per share attributable to owners of the
 parent:

 Basic earnings per share (EUR)                          -0.06   -0.06     0.11

 Diluted earnings per share (EUR)                        -0.06   -0.06     0.11

Condensed consolidated interim statement of cash flows

  EUR '000                                               Q1 2019   Q1 2018
---------------------------------------------------------------------------
  Cash flows from operating activities

  Cash receipts from customers                            46,964    53,004

  Cash paid to suppliers                                 -43,997   -49,887

  VAT paid                                                  -846    -1,350

  Cash paid to and for employees                          -5,292    -5,206

  Income tax paid                                            -11         0

  Net cash used in operating activities                   -3,182    -3,439



  Cash flows from investing activities

  Paid on acquisition of property, plant and equipment       -43       -66

  Proceeds from sale of property, plant and equipment         18         3

  Loans provided                                              -9        -6

  Repayment of loans provided                                  2         3

  Dividends received                                         238       245

  Interest received                                            2         3

  Net cash from investing activities                         208       182



  Cash flows from financing activities

  Proceeds from loans received                             1,737       534

  Repayment of loans received                                 -9      -194

  Finance lease payments made                               -577      -450

  Payments for lease liabilities                            -251         0

  Interest paid                                             -208      -170

  Dividends paid                                               0      -384

  Net cash from/used in financing activities                 692      -664



  Net cash flow                                           -2,282    -3,921



  Cash and cash equivalents at beginning of period         7,678     8,916

  Effect of movements in foreign exchange rates               -5         0

  Decrease in cash and cash equivalents                   -2,282    -3,921

  Cash and cash equivalents at end of period               5,391     4,995

Financial review

Financial performance

Nordecon  ended the  first quarter  of 2019 with  a gross  profit of 46 thousand
euros  (Q1 2018: 453 thousand  euros). The  Group's gross  margin for  the first
quarter  was  0.1% (Q1  2018: 1%). Due  to  the  seasonality of the construction
business, first-quarter results, particularly in the Infrastructure segment, are
affected  by a large  share of uncovered  fixed costs. The Group's first-quarter
gross  profit was earned in the Buildings segment where the margin improved year
on  year, rising to 4.5% (Q1 2018: 3.3%). The loss of the Infrastructure segment
grew  compared to the first quarter  of 2018, mainly due to unfavourable weather
at  the beginning of the  year. The challenging weather  conditions of the first
two  months  of  2019 lowered  the  profitability  of  national road maintenance
contracts:  constant temperature  changes and  higher than average precipitation
increased the cost base of all the main inputs.

The  Group's  administrative  expenses  for  the  first quarter of 2019 totalled
1,493 thousand  euros.  Compared  to  the  same period last year, administrative
expenses  decreased by around 11% (Q1  2018: 1,671 thousand euros) but the ratio
of  administrative expenses to revenue (12  months rolling) remained at the same
level as a year ago: 3.1% (Q1 2018: 3.1%).

The  Group ended  the first  quarter of  2019 with an  operating loss  of 1,750
thousand  euros (Q1 2018: 1,451 thousand  euros). EBITDA was  negative at 1,018
thousand euros (Q1 2018: negative at 944 thousand euros).
Finance  income and costs of  the period continued to  be influenced by exchange
rate  fluctuations in the  Group's foreign markets.  While the Ukrainian hryvnia
strengthened  against the euro by 3.6% and the Group recognised an exchange gain
of  215 thousand euros (Q1 2018: 62 thousand  euros), the Swedish krona weakened
against  the euro by  around 1.7% and the  Group recognised an  exchange loss of
163 thousand  euros (Q1 2018: 123 thousand euros). The period's foreign exchange
gain  and loss  resulted from  translating loans  provided to  the Ukrainian and
Swedish subsidiaries in euros into the local currency.

The  Group's net loss amounted  to 1,893 thousand euros (Q1 2018: 1,883 thousand
euros)  of which the net loss attributable to owners of the parent, Nordecon AS,
was 1,962 thousand euros (Q1 2018: 1,806 thousand euros).

Cash flows

In  the first quarter of 2019, operating  activities produced a net cash outflow
of  3,182 thousand euros (Q1 2018: an outflow of 3,439 thousand euros). Negative
operating  cash flow is typical of the first quarter and stems from the cyclical
nature  of the construction  business. Larger fixed  costs and preparations made
for  starting  more  active  construction  operations  in  the  second  quarter,
particularly  in the Infrastructure  segment, cause outflows  to exceed inflows.
Operating  cash flow continues  to be 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,  materials  suppliers,  etc.  Cash  inflow  is  also  lowered by
contractual retentions, which extend from 5 to 10% of the contract price and are
released  at the end of the construction  period only. The Group has concluded a
frame  agreement for reverse factoring which  enables our subcontractors that do
not  have  sufficient  credit  standing  to  obtain  a factoring facility from a
financing institution to use our facility.

Investing  activities resulted  in a  net cash  inflow of 208 thousand euros (Q1
2018: an  inflow of 182 thousand euros). The largest items were payments for the
acquisition  of property, plant and equipment of 43 thousand euros (Q1 2018: 66
thousand  euros)  and  dividends  received  of 238 thousand euros (Q1 2018: 245
thousand euros).

Financing  activities  generated  a  net  cash  inflow of 692 thousand euros (Q1
2018: an  outflow of 664 thousand euros). The  largest items were loan, right of
use  and finance lease payments. Proceeds from loans received amounted to 1,737
thousand  euros,  consisting  of  development  loans  and  overdrafts  used  (Q1
2018: 534 thousand   euros).  Loan  repayments  totalled  9 thousand  euros  (Q1
2018: 194 thousand  euros) and  finance lease  payments amounted to 577 thousand
euros  (Q1  2018: 450 thousand  euros).  In  connection  with  a change in lease
accounting  policies according to which operating lease liabilities that used to
be  accounted  for  off  the  statement  of financial position are recognised as
borrowings  as from 1 January 2019, payments related to such leases are reported
in  cash flows from financing activities. Relevant  right of use payments of the
period  totalled  251 thousand  euros  (see  also  note 1 Significant accounting
policies).  Interest payments of  the period amounted  to 208 thousand euros (Q1
2018: 170 thousand  euros). Interest payments have  grown in connection with the
same change in accounting policies.

At  31 March 2019, the Group's cash and cash equivalents totalled 5,391 thousand
euros (31 March 2018: 4,995 thousand euros).

Key financial figures and ratios

 Figure/ratio   for   the
 period                         Q1 2019       Q1 2018       Q1 2017        2018
-------------------------------------------------------------------------------
 Revenue (EUR '000)              34,524        43,662        41,604     223,496

 Revenue change                  -20.9%          4.9%         50.0%       -3.4%

 Net loss/profit (EUR
 '000)                           -1,893        -1,883        -1,086       3,821

 Net loss/profit
 attributable to owners
 of the parent
 (EUR '000)                      -1,962        -1,806        -1,087       3,381

 Average number of shares    31,528,585    30,913,031    30,756,728  31,528,585

 Earnings per share (EUR)         -0.06         -0.06         -0.04        0.11

 Administrative expenses
 to revenue                        4.3%          3.8%          3.5%        3.0%

 Administrative expenses
 to revenue (rolling)              3.1%          3.1%          3.2%        3.0%

 EBITDA (EUR '000)               -1,018          -944          -503       6,021

 EBITDA margin                    -2.9%         -2.2%         -1.2%        2.7%

 Gross margin                      0.1%          1.0%          1.5%        4.5%

 Operating margin                 -5.1%         -3.3%         -2.4%        1.8%

 Operating margin
 excluding gain on asset
 sales                            -5.2%         -3.3%         -2.4%        1.3%

 Net margin                       -5.5%         -4.3%         -2.6%        1.7%

 Return on invested
 capital                          -2.9%         -2.6%         -1.5%        8.4%

 Return on equity                 -5.8%         -5.0%         -2.9%       11.2%

 Equity ratio                     30.2%         31.1%         35.6%       32.4%

 Return on assets                 -1.8%         -1.9%         -1.1%        3.5%

 Gearing                          38.4%         35.3%         29.3%       28.5%

 Current ratio                     0.97          1.01          1.01        11.2

 As at                    31 March 2019 31 March 2018 31 March 2017 31 Dec 2018
-------------------------------------------------------------------------------
 Order book (EUR '000)          170,509       143,589       130,109     100,352
-------------------------------------------------------------------------------

Performance by geographical market

The  contribution of  the Group's  foreign markets  has remained  stable. In the
first  quarter  of  2019, revenue  earned  outside Estonia accounted for 10% (Q1
2018: 8%) of our total revenue.

            Q1 2019   Q1 2018   Q1 2017   2018
-----------------------------------------------
  Estonia       90%       92%       91%    93%

  Ukraine        5%        3%        1%     4%

  Finland        4%        1%        2%     1%

  Sweden         1%        4%        6%     2%

The  share of the  Group's Ukrainian revenues  grew compared to  the same period
last  year. In Ukraine, we are providing general contractor's services under two
building  construction contracts.  The share  of Swedish revenues decreased year
on year. During the period, we provided services under one construction contract
secured  as a  general contractor.  Our Finnish  revenues resulted from concrete
works in the building construction segment.

Geographical  diversification  of  the  revenue  base  is a consciously deployed
strategy by which we mitigate the risks resulting from excessive reliance on one
market.  However,  conditions  in  some  of  our chosen foreign markets are also
volatile  and have  a noticeable  impact on  our current results. Increasing the
contribution of foreign markets is one of Nordecon's strategic targets.

Performance by business line

Segment revenues

We  strive to  maintain the  revenues of  our operating  segments (Buildings and
Infrastructure)  as balanced as  possible because this  helps to diversify risks
and provides better opportunities for continuing construction operations in more
challenging  market conditions where the volumes  of one or several sub-segments
decline substantially.

In  the  first  quarter  of  2019, Nordecon generated revenue of 34,524 thousand
euros,  roughly  20.9% less  than  in  the  same  period  last year when revenue
amounted  to 43,662 thousand  euros. The  decline was  sharper in  the Buildings
segment  where  revenue  dropped  by  24%. The  fall in first-quarter revenue is
attributable   to  longer  than  usual  decision-making  processes  between  the
submission of bids and signature of contracts in public procurements carried out
in  the second  half of  2018 and longer  than expected preparatory processes of
some  contracts signed with private sector customers. We highlighted the matters
already  in our annual report for 2018. However, based on the Group's order book
and known developments in our chosen markets, we expect that in 2019 the Group's
business volumes will grow somewhat compared to 2018.

The  limited volume of infrastructure  construction projects, which is affecting
the  entire  Estonian  construction  market,  is  also  reflected in our revenue
structure.  In  the  first  quarter  of  2019, our  Buildings and Infrastructure
segments  generated revenue  of 28,638 thousand  euros and  5,791 thousand euros
respectively.  In  the  same  period  last  year, the corresponding figures were
37,616 thousand euros and 5,941 thousand euros.

  Operating segments   Q1 2019   Q1 2018   Q1 2017   2018
----------------------------------------------------------
  Buildings                82%       86%       89%    72%

  Infrastructure           18%       14%       11%    28%

Sub-segment revenues

Due  to the overall revenue decline,  the revenues of all sub-segments decreased
year on year.

Similarly  to  previous  periods,  the  largest  revenue source in the Buildings
segment  was the commercial buildings sub-segment. The period's largest projects
in  progress  included  the  reconstruction  and  extension  of  the building of
Terminal  D in the Old City harbour, the construction of a multi-storey car park
at  Sepapaja 1 and the  design and construction  of an eight-floor accommodation
building at Liimi 1B in Tallinn.

A  significant  share  of  the  Group's Estonian apartment building construction
projects  is located  in Tallinn.  During the  period, the  largest of them were
located  at  Lesta  10, Sammu  6 and  Valge  16. Sweden, where we are delivering
construction  services in  a housing  development project  and have  started the
design  work in two new projects, continues to make a strong contribution to the
sub-segment's  revenue.  An  apartment  building  in  phase III of the Sõjakooli
project was delivered to the customer on schedule.

We  continued work on our own housing  development projects in Tallinn and Tartu
(reported  in the apartment  buildings sub-segment). In  Tallinn, we completed a
four-floor   apartment   building   with   21 apartments   at   Nõmme   tee  97
(www.nommetee.ee   (http://www.nommetee.ee))   and   began   preparing  for  the
construction  of  a  new  five-floor  apartment  building with 24 apartments  at
Võidujooksu  8c (www.voidujooksu.ee).  In  Tartu,  we  continued  to build three
apartment  buildings with  10 apartments each  at Aruküla  tee (www.kaldakodu.ee
(http://www.kaldakodu.ee)).  Our  own  housing  developments  did  not  generate
revenue in the period under review (Q1 2018: 1,638 thousand euros). The delivery
of  apartments in the development in Nõmme  tee will begin in the second quarter
of  2019. In carrying out  development activities, we  monitor closely potential
risks in the housing development market.

Based  on the Group's order book, we expect  that in 2019 as a whole the revenue
of  the public buildings sub-segment will  increase compared to 2018. During the
period, the sub-segment's revenue was strongly influenced by the construction of
the  Peetri sports and leisure centre in Rae  parish and an assembly area at the
Defence Forces' base at Tapa. The Estonian Academy of Security Sciences building
in Tallinn was delivered to the customer on schedule.

The largest projects in the industrial and warehouse facilities sub-segment were
the construction of a warehouse and office building at Kaldase tee in Maardu and
the  reconstruction (phase  V) of  the fattening  unit of  a pig farm of Rakvere
Farmid  AS (EKSEKO). Compared to earlier periods,  the share of orders placed by
the agricultural sector has decreased significantly, which is one of the reasons
for the sub-segment's revenue decline.

 Revenue breakdown in the Buildings segment Q1 2019 Q1 2018 Q1 2017 2018
------------------------------------------------------------------------
 Commercial buildings                           39%     38%     26%  35%

 Apartment buildings                            30%     25%     33%  25%

 Public buildings                               21%     23%     28%  25%

 Industrial and warehouse facilities            10%     14%     13%  15%

We   do   not  expect  any  major  changes  in  the  revenue  breakdown  of  the
Infrastructure  segment in  2019. The segment  will continue  to be dominated by
road construction and maintenance despite the fact that in the first quarter the
contribution  of other engineering grew. During the period, a major share of the
revenue  of  the  road  construction  and  maintenance sub-segment resulted from
construction  contracts secured in  2018: the construction of  roads and bridges
for  the Defence Forces'  central training area  in Kuusalu parish and different
smaller-scale  forest  road  improvement  services  provided to the State Forest
Management Centre. We continued to render road maintenance services in Järva and
Hiiu counties and the Kose maintenance area in Harju county.

We continued earthworks on the Kiili-Paldiski section of the onshore part of the
Balticconnector  gas  pipeline  that  accounted  for  a significant share of the
revenue of the other engineering sub-segment.

 Revenue breakdown in the Infrastructure segment Q1 2019 Q1 2018 Q1 2017 2018
-----------------------------------------------------------------------------
 Road construction and maintenance                   65%     85%     82%  89%

 Other engineering                                   33%     12%     10%   7%

 Environmental engineering                            2%      3%      8%   4%

Order book

At  31 March 2019, the Group's  order book (backlog  of contracts signed but not
yet  performed) stood  at 170,509 thousand  euros, an  increase of  roughly 18%
compared to a year ago. In the first quarter of 2019, we signed new contracts of
92,556 thousand euros (Q1 2018: 22,275 thousand euros).

                       31 March 2019 31 March 2018 31 March 2017 31 Dec 2018
----------------------------------------------------------------------------
 Order book (EUR '000)       170,509       143,589       130,109     100,352

At  the  reporting  date,  contracts  secured  by  the Buildings segment and the
Infrastructure segment accounted for 86% and 14% of the Group's total order book
respectively  (31  March  2018: 68% and  32% respectively). Compared to 31 March
2018, the order book of the Buildings segment has increased by 50% and the order
book of the Infrastructure segment has decreased by 49%.

The  order books  of the  commercial buildings,  public buildings  and apartment
buildings  sub-segments account for an equal  share, approximately a third each,
of  the  order  book  of  the  Buildings  segment. The order books of those sub-
segments have grown significantly compared to the same period last year.  In the
commercial  buildings  sub-segment,  the  largest  projects  in  progress are in
Tallinn:  the reconstruction and extension of the  building of Terminal D in the
Old  City Harbour  and the  construction of  an office  complex consisting  of a
three- and a five-floor building on the corner of Suur-Patarei and Jahu streets,
a  multi-storey car park at Sepapaja 1 and a new seven-floor commercial building
in  Rotermann City. In  addition, we have  signed a contract  for the design and
construction  of a multi-storey car park for Tartu University Hospital in Tartu.
The order book of the apartment buildings sub-segment includes contracts for the
construction   of   apartment  buildings  in  Tallinn,  and  contracts  for  the
construction  of two apartment  buildings in Sweden  that were signed during the
reporting  period. A major share of the  order book of the public buildings sub-
segment  is  made  up  of  contracts  signed  at  the  beginning of 2019 for the
construction  of the Estonian Academy of Security Sciences and the University of
Tartu  Training Centre in Narva, a sports  and health centre at Kohtla-Järve and
an  assembly area  at the  Defence Forces'  base at  Tapa. The order book of the
industrial and warehouse facilities sub-segment has decreased substantially.

The  order book  of the  Infrastructure segment  continues to  be underpinned by
contracts of the road construction and maintenance sub-segment which account for
around  72% of the Infrastructure segment's order  book. The largest projects in
the  road  construction  order  book  are  the  construction  of  the Veskitammi
intersection  in  Laagri,  near  Tallinn,  passing  lanes  for a 2+1 road on the
Pikknurme-Puurmani  section  (km  142.2-146.9) of the Tallinn-Tartu-Võru-Luhamaa
road,  and roads and  bridges for the  Defence Forces' central  training area in
Kuusalu  parish. The  Group continues  to provide  road maintenance  services in
three  road maintenance areas: Järva, Hiiu and Kose. We also continue to provide
earthwork  services on  the Kiili-Paldiski  section of  the onshore  part of the
Balticconnector gas pipeline.

Based on the size of the Group's order book and known developments in our chosen
markets,  we expect that in 2019 the Group's revenue will grow slightly compared
to  2018. In an environment of exceptionally  stiff competition, we avoid taking
unjustified risks whose realisation in the contract performance phase would have
an  adverse  impact  on  the  Group's  results.  Despite  this,  where  suitable
opportunities  arise,  we  strive  to  increase  the portfolio to counteract the
pressure on margins that is caused by the market situation. Our preferred policy
is to keep fixed costs under control and monitor market developments closely.

Between  the reporting  date (31  March 2019) and  the date  of release  of this
report,  Group companies have  secured additional construction  contracts in the
region  of 20,552 thousand euros, a major share of which is made up of contracts
of the Infrastructure segment.

People

Employees and personnel expenses

In  Q1 2019, the Group  (the parent and  the subsidiaries) employed, on average,
662 people  including  391 engineers  and  technical  personnel (ETP). Headcount
dropped by around 4% compared to the first quarter of 2018.

Average number of employees at Group entities

                  Q1 2019   Q1 2018   Q1 2017   2018
-----------------------------------------------------
  ETP                 391       427       413    419

  Workers             271       264       303    268

  Total average       662       691       716    687

The  Group's personnel  expenses for  the first  quarter of  2019, including all
taxes,  totalled 5,363 thousand euros.  In the first  quarter of 2018, personnel
expenses amounted to 4,943 thousand euros. Personnel expenses grew by around 8%
through a rise in wages and salaries.

The  service fees  of the  members of  the council  of Nordecon AS for the first
quarter  of 2019 amounted  to 47 thousand  euros and  associated social security
charges  totalled 15 thousand euros (Q1  2018: 47 thousand euros and 15 thousand
euros respectively).

The  service fees of  the members of  the board of  Nordecon AS amounted to 123
thousand euros and associated social security charges totalled 42 thousand euros
(Q1  2018: 232 thousand euros  and 77 thousand  euros respectively). The figures
for the first quarter of 2018 included termination benefits of 93 thousand euros
paid  to a  member of  the board  and associated  social security charges of 31
thousand euros.

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 personnel expenses incurred:

                                                  Q1 2019 Q1 2018 Q1 2017  2018
-------------------------------------------------------------------------------
 Nominal labour productivity (rolling), (EUR
 '000)                                              315.5   320.4   281.9 325.4

 Change against the comparative period, %           -1.5%   13.7%   30.4%  3.3%



 Nominal labour cost efficiency (rolling), (EUR)      9.2    10.0     9.5   9.7

 Change against the comparative period, %           -8.4%    5.4%   20.7% -3.8%

The  Group's  nominal  labour  productivity  and labour cost efficiency declined
compared to the first quarter of 2018 due to a decrease in revenue and growth in
personnel expenses.

Nordecon (www.nordecon.com (http://www.nordecon.com)) is a group of construction
companies  whose core  business is  construction project  management and general
contracting  in the  buildings and  infrastructures segment.  Geographically the
Group  operates in Estonia, Ukraine, Finland and Sweden. The parent of the Group
is  Nordecon  AS,  a  company  registered  and  located in Tallinn, Estonia. The
consolidated  revenue  of  the  Group  in  2018 was 223 million euros. Currently
Nordecon  Group  employs  close  to  660 people. Since 18 May 2006 the company's
shares have been quoted in the main list of the NASDAQ Tallinn Stock Exchange.

Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: [email protected] (mailto:[email protected])
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