Elmera Group Asa · OSL:ELMRA

Elmera Group Asa — Fjordkraft — Q1 2021 Earnings Presentation

28 slides from Elmera Group Asa's earnings presentation, May 12, 2021

  1. Slide 1: Q1 2021 Presentation

    Q1 2021 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) 12th May

  2. Slide 2: Q1 2021 Highlights

    Q1 2021 HIGHLIGHTS Rolf Barmen (CEO)

  3. Slide 3: Highlights first quarter 2021

    Highlights first quarter 2021 Unfavourable market dynamics affecting the quarter Key Highlights # of deliveries (end of period) 1 Δ in # of deliveries (QoQ) • 6% YoY increase in net revenue and 9% YoY decrease in EBIT adj. versus a historically strong Q1 in 2020 1 005 857 -20 717 • Unfavourable mark

  4. Slide 4: Business Review

    BUSINESS REVIEW Rolf Barmen (CEO)

  5. Slide 5: Update on Covid-19 and dialogue with the Consumer Authority (CA)

    Update on Covid-19 and dialogue with the Consumer Authority (CA) • Impact from Covid-19 • The Norwegian Government is planning that the next step in the reopening process will take place in the second part of May, dependant on number of reported cases and the vaccination progress • Until reopening,

  6. Slide 6: Market development

    Market development Key highlights in Q1 2021 Weekly elspot prices (NOK/kWh)2 • Significant and rapid increase in elspot prices in January negatively affecting margins • Colder than last year in two out of three months1 - Jan: -3.3°C below normal (7.3°C colder than 2020) - Feb: -2.0°C below normal (4

  7. Slide 7: Segment development - Consumer

    Segment development - Consumer Key highlights in Q1 2021 # of electricity deliveries1 (‘000) • Organic decrease of 19,150 deliveries in Q1 2021 800 • Negative one-off effect from the termination of the Eidsiva brand, shut down of physical distribution and 600 negative media attention driving the dev

  8. Slide 8: Segment development - Business

    Segment development - Business Key highlights in Q1 2021 # of electricity deliveries1 (‘000) • Organic growth of 1,899 deliveries in Q1 2021 120 • Volume growth of 44% YoY, driven by M&A and 80 increased volume per delivery 104 107 109 • Avg. volume per delivery increasing 5% YoY 40 79 81 24,416 kWh

  9. Slide 9: New Growth Initiatives & Nordic

    New Growth Initiatives & Nordic Key highlights in Q1 2021 # of Mobile subscribers1 (‘000) • Growth of 2,280 mobile subscribers in Q1 2021 • Fjordkraft will transition from using eRate’s service 120 provider platform to their new MVNO platform (mobile virtual network operator) 80 132 135 118 122 • Th

  10. Slide 10: Financial Review

    FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)

  11. Slide 11: Net revenue development

    Net revenue development Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +6% 2 000 600 +13% 40 1 600 -50 30 7 400 1 200 481 469 510 800 1 543 1 572 1 387 1 427 1 452 200 400 0 0 Q1 20 Consumer Business NGI Nordic Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 • Net revenue growth of 6% YoY, driven

  12. Slide 12: EBIT adj. development

    EBIT adj. development Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 300 -9% 800 +15% 50% 40% 200 -78 4 22 600 39% 40% 41% 39% 37% 31 30% 400 238 100 215 588 608 586 20% 194 547 572 200 Adj. EBIT Adj. EBIT 10% margin: 49% margin: 42% 0 0 0% Q1 20 Consumer Business NGI Nordic Q1 21 Q1 20 Q2 20 Q3 20

  13. Slide 13: Segment overview

    Segment overview Consumer segment Business segment Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 -14% 400 300 300 +28% 200 362 200 309 312 100 230 205 100 108 122 138 75 72 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 200 52% 60% 200 65% 80%

  14. Slide 14: Segment overview cont.

    Segment overview cont. Nordic segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 400 300 300 200 200 +65% 100 40.5 100 17.9 11.5 9.9 7.5 15.1 19.0 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 200 53% 60% 180 150 130

  15. Slide 15: NWC development

    NWC development Net working capital1 (NOKm) 800 • Net working capital (NWC) is increasing to 542 NOKm at quarter-end Q1 2021 700 192 600 • In addition to seasonality and increased prices and volumes, NWC was impacted by quarter-end 500 during Easter public holidays, which affected the timing of cust

  16. Slide 16: Net cash development

    Net cash development Change in net cash Q-o-Q (NOKm) - ( 344) ( 200) ( 400) ( 802) OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 197m ( 600) (626) (15) (53) ( 800) (22) 265 (1 000) (1 200) Net cash 31.12.20 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC Net cas

  17. Slide 17: Outlook for 2021-2023

    Outlook for 2021-20231  Targeting high-single digit net revenue growth. 2021 expected above double digit due to acquisitions in 2020 Group  Targeting a sustainable EBIT margin of 36-38%  Ambition to act as a consolidator in a fragmented market Growth  Targeting mid-single digit annual net revenu

  18. Slide 18: Fjordkraft

    C) Fjordkraft Mer for pengene

  19. Slide 19: Appendix

    Appendix — ler for pengene

  20. Slide 20: Profit and Loss Account

    PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q1 2021 20

  21. Slide 21: Adjusted EBIT reconciliation

    ADJUSTED EBIT reconciliation | Quarterly Presentation | Q1 2021 21

  22. Slide 22: Adjusted EBIT reconciliation cont.

    ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q1 2021 22

  23. Slide 23: Balance Sheet

    BALANCE SHEET | Quarterly Presentation | Q1 2021 23

  24. Slide 24: Balance Sheet

    BALANCE SHEET | Quarterly Presentation | Q1 2021 24

  25. Slide 25: Cash Flow

    CASH FLOW | Quarterly Presentation | Q1 2021 25

  26. Slide 26: Cash Flow

    CASH FLOW | Quarterly Presentation | Q1 2021 26

  27. Slide 27: 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

  28. Slide 28: 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

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