Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q3 2022 Earnings Presentation
24 slides from Elmera Group Asa's earnings presentation, 2022
Slide 1: Quarterly presentation Q3 2022
Quarterly presentation Q3 2022 ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)
Slide 2: Elmera Group – brands and corresponding reporting segments
Elmera Group – brands and corresponding reporting segments Investments in New Growth Consumer Business Nordic associates and Initiatives joint ventures Quarterly presentation | Q2 2022 22
Slide 3: Highlights Q3 2022
Highlights Q3 2022 • Strong financial results across all reporting segments. Group net revenue of 424 NOKm (+15% YoY) and EBIT adj. of 121 NOKm (+33% YoY) • Customer growth of 3.5k deliveries in the Consumer segment in the quarter. The trend was positive through the quarter – and has accelerated so
Slide 4: Market development Q3 2022
Market development Q3 2022 Market situation: • High and volatile price levels due to the geopolitical situation and energy balance • Significant area price differences and peak/off-peak price Weekly elspot prices (NOK/kWh)1 differences from grid congestions 3,5 • Decreasing demand due to high price
Slide 5: Key figures: deliveries and volume per segment
DELIVERIES AND VOLUME PER SEGMENT Key figures Consumer segment Business segment Nordic segment Deliveries (thousands) 726 692 663 661 664 112 111 115 117 117 166 171 177 164 162 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 -24% avg. volume per delivery Yo
Slide 6: New Growth Initiatives
New Growth Initiatives • Alliance volume 664 GWh in Q3 2022, a decrease of 17% YoY due to high elspot prices • Number of Extended Alliance deliveries decrease by 4,654 from last quarter due to loss of one Alliance Partner • Mobile app released to ten Alliance partners in the quarter, now available f
Slide 7: Regulatory update
Regulatory update • Regulatory changes with effect from 1 November 2022, as expected • Notification period on variable contracts increased from 14 to 30 days, providing customers with increased predictability and improving the value proposition • Increased price transparency on invoice and website •
Slide 8: Financial review Q3 2022
Financial review Q3 2022 HENNING NORDGULEN (CFO)
Slide 9: Group net revenue adj. and EBIT adj.
Group net revenue adj. and EBIT adj. Group Net revenue adj. (NOKm) Group EBIT adj. (NOKm) 5 (3) 9 20 19 18 9 7 121 121 404 424 369 91 Q3 21 Consumer Business NGI Nordic Q3 22 Q3 21 Consumer Business NGI Nordic Q3 22 • Reclassification of Statkraft Energi AS (“SEAS”) interest expense from “Direct cos
Slide 10: Net revenue and EBIT adj. by segment
Net revenue and EBIT adj. by segment Consumer segment Business segment Net revenue adj. (NOKm) Net revenue adj. (NOKm) 400 400 Consumer: 300 300 • Strong margins on variable 200 200 contracts in the quarter in 326 combination with lower costs YoY 270 247 230 237 driving EBIT adj. improvement 100 100
Slide 11: Net revenue and EBIT adj. by segment
Net revenue and EBIT adj. by segment Nordic segment New Growth Initiatives segment Net revenue adj. (NOKm) Net revenue adj. (NOKm) 75 100 Nordic: 50 75 • Positive volume effect from 25 51 hedges in the Nordic segment 31 32 27 50 offsets negative effects from 0 profile costs in the quarter 25 -25 -44
Slide 12: Residual fixed price exposure in the Nordic segment
Residual fixed price exposure in the Nordic segment • Volume risk occurs when consumption differs from the hedged volume. The Group’s fixed price contracts in the Nordic segment have been hedged in accordance with volume estimates • Profile risk occurs when the weighted cost of electricity from the
Slide 13: Well managed credit risk with very low losses
Well managed credit risk with very low losses Receivables settled 180 days after due date1 • Elmera utilise a model based and methodical approach to granting and monitoring credit, including internal and external scoring data, categorising customers in risk B2B 99.93% classes with corresponding cred
Slide 14: NWC and net cash position
NWC and net cash position Net cash (NOKm) Net working capital (NOKm) - ( 200) ( 400) ( 600) (1 397) (1 479) ( 800) (1 000) «Cash EBIT adj.» in the quarter: 615 NOK 80m 541 (1 200) (9) 156 (67) (1 400) (63) 74 121 (1 600) Net cash Change in EBITDA adj. CAPEX ex. Payments to Non-cash NWC Net cash Q3 2
Slide 15: Organic financial targets 2022-2023
Organic financial targets 2022-2023 Targeting a net revenue in the area of NOK 1,600-1,650m for 2022 and 2023 Group EBIT adj. in the area of NOK 500-550m for 2022 and 2023. 2022 expected in the lower end of the interval (EBIT adj. margin in the area of 30-34%) Cap.ex Targeted to be in the area
Slide 16: Q&A
Q&A ElmeraGroup
Slide 17: Appendix
Appendix a Elmera Group
Slide 18: Reclassification of SEAS interest expense
Reclassification of SEAS interest expense 3,9 12,3 2,6 15,0 15,7 215,3 19,4 2,4 161,0 140,9 140,8 123,0 101,6 89,2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2021 2021 2021 2022 2022 2022 EBIT adj. before reclassification Reclassification of interest expenses, increasing EBIT adj. The interest expense for credit day
Slide 19: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation Quarterly presentation | Q2 2022 19
Slide 20: Profit and Loss account
Profit and Loss account Quarterly presentation | Q2 2022 20
Slide 21: Balance sheet
Balance sheet Quarterly presentation | Q2 2022 21
Slide 22: Balance sheet
Balance sheet Quarterly presentation | Q2 2022 22
Slide 23: Cash flow
Cash flow Quarterly presentation | Q2 2022 23
Slide 24: Cash flow
Cash flow Quarterly presentation | Q2 2022 24