Slide 1: Q1 2020 Presentation
Q1 2020 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) 14th May
Slide 2: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights first quarter 2020
Highlights first quarter 2020 Strong profitability growth in an extraordinary situation Key Highlights 1 • Strong financial performance with a 27% YoY increase # of deliveries (end of period) Δ in # of deliveries (QoQ) in net revenue and 31% YoY growth in EBIT adj. 621 348 -744 • Favourable market d
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Operational and financial impact from Covid-19
Operational and financial impact from Covid-19 • Both M&A activities and sales and marketing activities are continuing at a high level despite the Covid-19 situation • Every EVP monitor and report the risk situation in their division on a weekly basis • Accounts receivables are monitored from day to
Slide 6: Market development
Market development Key highlights in Q1 2020 Weekly elspot prices (NOK/kWh)2 • Elspot prices have decreased throughout the 0,6 quarter, ending at a historically low level 0,5 0,4 • Temperatures warmer than both the normal and 0,3 last year in three out of three months1 0,2 - Jan: +6.1°C above normal
Slide 7: Segment development - Consumer
Segment development - Consumer Key highlights in Q1 2020 # of electricity deliveries1 (‘000) • Decrease of 1,717 deliveries in Q1 2020 600 • Volume growth of 1% YoY, driven by increase in # of 400 deliveries 530 532 542 544 542 - Avg. volume per delivery is down 1% YoY 200 4,287 kWh in Q1 2020 vs. 4
Slide 8: Segment development - Business
Segment development - Business Key highlights in Q1 2020 # of electricity deliveries1 (‘000) • Positive organic growth in the segment 80 - Net additions in Q1 2020 were 973 60 • Volume decrease 13% YoY driven by decrease in avg. consumption per delivery from mild weather, 40 76 76 78 78 79 fewer ten
Slide 9: New Growth Initiatives
New Growth Initiatives Key highlights in Q1 2020 # of Mobile subscribers1 (‘000) • The strong growth in the number of Mobile 120 subscribers continues. Well on the way towards the targeted 125 thousand subscribers at the end of 80 2020 - Growth of 10,025 subscribers in Q1 2020 100 110 92 40 72 81 0
Slide 10: Financial Review
FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)
Slide 11: Strong net revenue growth
Strong net revenue growth Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +27% 1 600 600 +20% 500 (3) 11 1 200 95 400 300 800 1 284 1 387 481 1 152 1 184 1 216 200 378 400 100 0 0 Q1 19 Consumer Business NGI Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 • Adj. net revenue growth driven by margin
Slide 12: Continued increase in EBIT adj.
Continued increase in EBIT adj. Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 300 +29% +31% 600 50% 250 0 (8) 40% 63 200 39% 400 37% 38% 37% 38% 30% 150 238 547 450 491 20% 100 200 425 446 182 50 Adj. EBIT Adj. EBIT 10% margin: 48% margin: 49% 0 0 0% Q1 19 Consumer Business NGI Q1 20 Q1 19 Q2 19 Q
Slide 13: Segment overview
Segment overview Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +36% 400 400 300 300 300 +11% 200 362 200 200 -19% 267 264 100 191 180 100 100 97 73 70 95 108 14,3 10,4 9,1 12,4 11,5 0 0 0 Q1 19 Q2 19 Q3 19 Q4 19 Q
Slide 14: Seasonally increase in NWC as el.cert for 2019 is settled and volume increase
Seasonally increase in NWC as el.cert for 2019 is settled and volume increase Net working capital1 (NOKm) 800 • Net working capital (NWC) is increasing by 251 NOKm from last quarter, driven by settlement of el certificates 700 and higher volumes 151 600 • The settlement of el certificates from 2019
Slide 15: Strong underlying cash generation
Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 700 600 (14) (23) (60) 500 278 (251) 400 300 581 511 OpFCF1 before tax and change in NWC 200 («Cash EBIT adj.»): NOK 241m 100 - Net cash 31.12.19 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC Net cash 31.03.2
Slide 16: Outlook for 2020-2022
Outlook for 2020-20221 Targeting high-single digit net revenue growth on an organic basis Group Targeting an EBIT margin of 36-38% Ambition to act as a consolidator in a fragmented market Growth Targeting mid-single digit net revenue growth on an organic basis Revised in Q1: Expected somewha
Slide 17: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 18: Appendix
Appendix — ler for pengene
Slide 19: Profit and Loss Account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q1 2020 19
Slide 20: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q1 2020 20
Slide 21: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q1 2020 21
Slide 22: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q1 2020 22
Slide 23: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q1 2020 23
Slide 24: Cash Flow
CASH FLOW | Quarterly Presentation | Q1 2020 24
Slide 25: Cash Flow
CASH FLOW | Quarterly Presentation | Q1 2020 25
Slide 26: Forward-looking statements
FORWARD-LOOKING STATEMENTS This presentation contains, or may be deemed to contain, statements that are not historical facts but forward-looking statements with respect to Fjordkraft’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other t
Slide 27: For more information: Fjordkraft's Investor Relations
For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no