Investor presentation

Nordecon International overviewNordecon International overview

Unified Nordecon

Former name New name

Estonia:AS Eesti Ehitus Nordecon International ASAS Linnaehitus Nordecon Ehitus ASAS Aspi Nordecon Infra ASAS Aspi Nordecon Infra AS

Latvia:SIA Abagars Nordecon Infra SIA

Lithuania:UAB Eurocon LT Nordecon Statyba UAB

Ukraine:LLC Eurocon Ukraine LLC Eurocon Ukraine

Leading general construction contractor and construction project management company in Estonia. Nordecon International is represented in all major industry segments with approximately 20% of revenue coming from other Baltic and Ukrainian markets.

Over 1 100 employees, of which E&T personnel approximately 500

Starting from 18 May 2006 listed in the NASDAQ OMX Tallinn Stock Exchange

MISSIONOur mission is to offer our customers complete premier value adding construction and

Nordecon International in brief

Our mission is to offer our customers complete premier value adding construction and engineering solutions.

We add value to the company by motivating our employees and providing them with clear development opportunities and a contemporary work environment.

VISIONOur goal is to become the fastest growing construction group on the Nordic and Baltic stock exchanges by 2013 in terms of revenue growth.

Residential and non-residential construction

industrialpremises and warehouses

commercialbuildings

public buildings residentialbuildings

SUPERSTRUCTURE

Nordecon International Business Model

Civil Engineering

Road projects Other infrastructure

road construction

road maintenance

hydro-technical structures

environmental structures

- waste disposal sites

- pipes and utility lines

INFRASTRUCTURE

Group’s strengths

� An organisation / shareholders oriented towards long-term profitable growth

� Organisationally separate engineering and construction businesses

� A flexible, horizontally integrated business model across the Group

� Experienced management

� Professional and loyal employees

� Relative conservatism in risk-taking� Relative conservatism in risk-taking

� Centralised support services in combination with strong business organisations

� A balanced revenue base that is equally divided between buildings construction and engineering

Road construction and maintenance

Environmental construction

Other infrastructure

Industrial, civil and commercial

Real estate development

Core Competencies

Nordecon International StrategyNordecon International Strategy

Group’s strategy in 2009-2010

� Reinforce its positions in the home market

� Redesign corporate structure, division of operations and activities

� Identifying and taking advantage of additional synergies in enhancing the efficiency of the subsidiaries’ sales, performance and purchasing operations

� Centralize group-wide support services to improve their efficiency

� Prepare for growth in foreign markets during 2011-2013� Prepare for growth in foreign markets during 2011-2013

� Develop a uniform organisational culture and identity

Group’s strategy results by 2013

� Market leader in Estonia in both buildings construction and engineering

� Earn 50 per cent of the revenue for 2013 in foreign markets*

� Separate buildings construction and engineering subsidiaries in both Latvia and Lithuania

� Penetrate the Ukrainian engineering market, if possible

� Ready to penetrate the Belarusian construction market, if supported by� Ready to penetrate the Belarusian construction market, if supported byreasonable arguments

Construction group with fastest growing revenue listed on Baltic and Nordic stock exchanges by 2013

* In recent quarters achievement of this goal has become heavily dependent on external market forces

In 2013 half of revenue from foreign markets

• To operate in Latvia and Lithuania on both construction and civil engineering markets via separate subsidiaries

• In Ukraine to expand into civil • In Ukraine to expand into civil engineering market

• If possible, to enter Belorussia’s construction market

• Half of revenue from foreign markets

Nordecon International 2013

Changes ensure cost-effectiveness of the Group

� Nordecon International gradually becomes the holding corporation

� Nordecon International manages expansion and development on selected markets

- centralization of support services

- centralizing competences of management and business activities on - centralizing competences of management and business activities on appropriate organizational levels

� Nordecon International participates as a construction company in major international procurements, concentrating the competences of subsidiaries to enhance competitiveness

Group’s structure by 2013

Light colours indicate subgroups which currently do not yet exist but reflect the Group’s opportunities for future growth

Streamlining group structure in 2009

Former structures related to AS Eesti Ehitus’ main activity will be divided into two within the year:

– pan-Estonian civil engineering company AS Nordecon Infra

– pan-Estonian construction company AS Nordecon Ehitus

Nordecon International Financial InformationNordecon International Financial Information

9m 2009

Revenue and Profit

169 968

186 730

125 75522 172

20 000

25 000

30 000

140 000

160 000

180 000

200 000

Pro

fit

(tE

UR

)

reve

nu

e (

tEU

R)

Revenue Operating profit Gross profit

14 767

11 434

2 851

19 941

10 560

0

5 000

10 000

15 000

0

20 000

40 000

60 000

80 000

100 000

120 000

9m 2007 9m 2008 9m 2009

Pro

fit

(tE

UR

)

reve

nu

e (

tEU

R)

Revenue by Geographic Regions

9m 2007

Estonia

9m 2008

Estonia

Ukraine

9m 2009

Estonia

Ukraine

Ukraine

Ukraine

Lithuania

Latvia

Lithuania

Latvia

9m 2007 9m 2008 9m 2009

Estonia 88% 80% 85%

Ukraine 12% 13% 2%

Latvia 0% 4% 12%

Lithuania 0% 2% 1%

Key Margins

13,0%

10,7%

8,4%8,7%

6,1%

10%

15%

Gross margin Operating margin Administrative expenses

6,1%

2,3%4,4% 4,7%

4,9%

-5%

0%

5%

9m 2007 9m 2008 9m 2009

Order Book

202 086194 461

150 000

200 000

250 000

Ord

er B

oo

k tE

UR

Order Book

103 036

0

50 000

100 000

9m 2007 9m 2008 9m 2009

Ord

er B

oo

k tE

UR

Revenue Distribution by Segments

48

36

5670

80

90

100

Buildings Civil engineering

52

64

44

0

10

20

30

40

50

60

70

9m 2007 9m 2008 9m 2009

% o

f re

ven

ue

Revenue Distribution in Buildings Segment

16 9

14

11

4

1914

23

70

80

90

100

Commercial buildings Industrial facilities Residential buildings Public buildings

58 5964

9

16 9

0

10

20

30

40

50

60

9m 2007 9m 2008 9m 2009

% o

f re

ven

ue

Revenue Distribution in Infrastructure Segment

23

39

1916

126

10

70

80

90

100

% o

f re

ven

ue

Road construction Other engineering Port construction Environmental engineering

37

52

43

12

23

31

0

10

20

30

40

50

60

9m 2007 9m 2008 9m 2009

% o

f re

ven

ue

Nordecon International Market Outlook 2009-2010Nordecon International Market Outlook 2009-2010

BIG COMPANIES

Expected pattern of market consolidation:

� Big companies will get bigger

� Pressure on medium sized companies to change/consolidate (move up or down, liquidated)

� Small companies will specialize and fight for survival

Market Outlook 2009-2010

SMALL COMPANIES

MEDIUM COMPANIES

Expected changes:

� total demand in construction market declines. Additional infrastructure projects not able to sustain market volumes. In Estonia market volumes to drop 50 per cent compared to boomtimes

� fierce competition in segments where demand is remaining

� hard times for developers with finished or unfinished projects and open financial position

Situation in foreign markets

Market Outlook 2009-2010

Situation in foreign markets

� Latvia’s infrastructure market looks promising despite problems in government and economic situation

� Lithuanian market is hard to penetrate at the moment with a start-up company

� Ukrainian real estate development market standing still. Construction market has tenders, but difficult financing conditions