Elmera Group Asa · OSL:ELMRA

Elmera Group Asa — Fjordkraft — Q1 2019 Earnings Presentation

25 slides from Elmera Group Asa's earnings presentation, May 15, 2019

  1. Slide 1: Q1 2019 Presentation

    Q1 2019 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 15th May

  2. Slide 2: Q1 2019 Highlights

    Q1 2019 HIGHLIGHTS Rolf Barmen (CEO)

  3. Slide 3: Highlights first quarter 2019

    Highlights first quarter 2019 Strong price management in an important quarter Key Highlights 1 • Net revenue adj. and EBIT adj. performance better than # of deliveries (end of period) Net change in # of deliveries expected, driven by strong price management and favourable market dynamics 606 652 1 6

  4. Slide 4: Sustainability report for 2018

    Sustainability report for 2018 – read more at investor.fjordkraft.no | Quarterly Presentation | Q1 2019 4

  5. Slide 5: Business Review

    BUSINESS REVIEW Rolf Barmen (CEO)

  6. Slide 6: Market development

    Market development Key highlights in Q1 2019 Weekly elspot prices (NOK/kWh)2 - Decreasing elspot prices throughout the quarter 0,6 – beneficial for variable products 0,5 • Warmer than normal weather in three out of three 0,4 months, negatively affecting average consumption 0,3 per delivery1 0,2 - Ja

  7. Slide 7: Segment development - Consumer

    Segment development - Consumer Key highlights in Q1 2019 # of electricity deliveries1 (‘000) • Positive organic development quarter over quarter 600 - Net additions in Q1 2019 were 921, all of which organic 500 400 • Volume growth of -1% YoY driven by decrease in average consumption, partly offset b

  8. Slide 8: Segment development - Business

    Segment development - Business Key highlights in Q1 2019 # of electricity deliveries1 (‘000) • Increase in deliveries 90 - Net additions in Q1 2019 were 758 80 70 60 • Volume growth of 7% YoY driven by growth in # of 50 deliveries 40 76 76 76 76 30 64 - Avg. volume per delivery decreasing -11% YoY 2

  9. Slide 9: New Growth Initiatives

    New Growth Initiatives Key highlights in Q1 2019 # of Mobile subscribers1 (‘000) • The organic growth in mobile subscribers continues 80 - Growth of 5,667 subscribers in Q1 2019 70 60 • Fjordkraft is now the largest mobile service provider 50 without its own mobile network 40 66 72 30 57 61 49 20 •

  10. Slide 10: Financial Review

    FINANCIAL REVIEW Birte Strander (CFO)

  11. Slide 11: Solid growth in adj. net revenue

    Solid growth in adj. net revenue Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +20% 1 400 400 +19% 16 5 350 1 200 43 300 1 000 250 800 200 378 600 1 152 150 314 1 005 1 048 1 088 968 400 100 50 200 0 0 Q1 18 Consumer Business NGI Q1 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 • Quarterly adj. n

  12. Slide 12: Strong adj. EBIT performance

    Strong adj. EBIT performance Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 250 +18% +24% 450 40% 200 400 35% 37% 36% 36% 36% 37% 23 4 350 30% 9 150 300 25% 250 425 20% 100 200 379 390 182 361 364 15% 147 150 50 100 10% Adj. EBIT Adj. EBIT margin: 47% margin: 48% 50 5% 0 0 0% Q1 18 Consumer Busines

  13. Slide 13: Solid performance across all segments

    Solid performance across all segments Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 300 +19% 300 300 250 250 250 200 200 200 +19% 150 150 150 +56% 267 100 223 213 100 100 174 156 50 50 82 83 97 50 62 65 9,1 5,6 6,7 9,

  14. Slide 14: Seasonally higher volume driving NWC increase QoQ

    Seasonally higher volume driving NWC increase QoQ Net working capital1 (NOKm) 1 200 • Net working capital (NWC) increased by 283 NOKm from last quarter due to seasonally higher volume. Prices decrease 1%2 from Q4 2018 to Q1 2019 1 000 142 • NWC decreasing 298 NOKm YoY. Prices increase 23% YoY2 and v

  15. Slide 15: From net cash to net debt – seasonal increase in NWC

    From net cash to net debt – driven by seasonal increase in NWC. Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 150 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 175m 100 131 (15) 50 (25) - (47) (283) (23) (50) 216 (100) (150) (200) Net cash 31.12.18 Change in NWC EBI

  16. Slide 16: Outlook

    Outlook • Net revenue growth in the Consumer segment expected somewhat higher than targeted for 2019, due to a strong Q1 • EBIT loss in 2019 in New Growth Initiatives targeted lower than 2018. Expecting ~25% improvement from nominal EBIT in 2018 | Quarterly Presentation | Q1 2019 16

  17. Slide 17: Fjordkraft – Mer for pengene

    CG) Fjordkraft Mer for pengene

  18. Slide 18: Appendix

    Appendix OO eC © Fjordkraft

  19. Slide 19: Profit and loss account

    PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q1 2019 Q1 2018 ∆ YoY Gross revenue 2 545,6 1 916,0 629,6 Cost of sales -2 167,3 -1 601,9 -565,3 Net revenue 378,4 314,1 64,3 Personnel expenses -64,4 -53,7 -10,8 Other operating expenses -97,9 -93,7 -4,2 Operating expenses -162,3 -147,

  20. Slide 20: Adjusted EBIT reconciliation

    ADJUSTED EBIT reconciliation NOK in thousands Q1 2019 Q1 2018 FY 2018 Revenue adjusted 2 545 634 1 916 005 6 712 291 Corporate 1) - - 8 657 Revenue 2 545 634 1 916 005 6 720 948 Direct cost of sales adjusted (2 167 273) (1 601 944) (5 624 399) Corporate 1) - - 873 Direct cost of sales (2 167 273) (1

  21. Slide 21: Adjusted EBIT reconciliation cont.

    ADJUSTED EBIT reconciliation cont. 2) Special items consists of one-time items as follows: NOK in thousands Q1 2019 Q1 2018 FY 2018 Special items incurred specific to: - the process of listing the company on Oslo Stock Exchange - (10 967) (11 323) - acquisition related costs - - (11 643) - legal cos

  22. Slide 22: Balance sheet

    BALANCE SHEET Summary reported financials NOK million Q1 2019 Q1 2018 ∆ Intangible assets 197,5 85,2 112,3 PP&E 33,1 3,5 29,6 Goodwill 155,8 - 155,8 Financial assets 23,0 15,1 7,9 Other non-current assets 150,6 142,3 8,3 Total non-current assets 559,9 246,1 313,8 Trade receivables 1 970,5 2 287,7 (3

  23. Slide 23: Cash flow

    CASH FLOW Summary reported financials NOK million Q1 2019 Q1 2018 ∆ YoY EBITDA 216,0 161,6 54,4 Payments to obtain a contract (contract assets) -25,5 -28,7 3,3 Other non-cash adjustments 6,3 5,2 1,2 Change in fair value of financial instruments -0,0 5,1 -5,1 Changes in working capital, etc. -262,5 -

  24. Slide 24: 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

  25. Slide 25: For more information

    For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no

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