Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q1 2023 Earnings Presentation
20 slides from Fortum Oyj's earnings presentation, May 11, 2023
Slide 1: Interim Report January-March 2023
Interim Report January-March 2023 Fortum Corporation 11 May 2023
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Unlawful seizure of assets brings Fortum's chapter in Russia to an end
Unlawful seizure of assets brings Fortum’s chapter in Russia to an end • Latest escalation of the war that Russia started • De facto seizure of assets under guise of new presidential decree – PAO Fortum (Fortum JSC) put “under temporary asset management” by Russian authorities – Russian Federation c
Slide 4: Fortum is moving forward and renewing
Fortum is moving forward and renewing – Strong start for clean power generation in Q1 • ‘Power to renew’ strategy including financial and environmental targets announced in March 2023 – The renewed Fortum is built on strong earnings power, clean power generation at scale, and very low specific emiss
Slide 5: Execution of our new strategy off to a good start
Execution of our new strategy off to a good start Deliver reliable clean energy Drive decarbonisation in industries Transform and develop Ensuring long term productivity and Partnering with strategic customers and Restructure organisation to fit for security of supply developing projects to enable g
Slide 6: Energy prices remain elevated, but down from 2022 peaks
Energy prices remain elevated, Gas and Continental power but down from 2022 peaks drive Nordic power prices . • Gas prices plummeted on a newly found delicate balance of LNG-dominated supply and reduced demand. • Comfortable gas storage levels (~55% at end-Q1) are adding confidence to Europe’s secur
Slide 7: Strong performance driven by clean power generation
Strong performance driven by clean power generation Q1/2023 Key financial indicators for continuing operations First quarter earnings dominated by clean power generation. The higher achieved Comp. OP Comp. EPS OCF Leverage 784 0.58 power price translates into 583 388 2-2.5 substantially higher earni
Slide 8: Tiina Tuomela, CFO
Tiina Tuomela CFO
Slide 9: Strong start for the year
Strong start for the year – Key financials for continuing operations MEUR I/2023 I/2022 I/2023 I/2022 LTM 2022 LTM 2022 Significant impact of (excl. (excl. (excl. (excl. Russia) Russia) Russia) Russia) clean power generation Sales 2,552 2,162 N/A N/A 9,194 8,804 N/A N/A Comparable EBITDA 891 527 781
Slide 10: Strong results and operational performance in the Generation segment
Strong results and operational performance in the Generation segment Q1/2023 Reconciliation of comparable operating profit Generation (EUR million) = Russia The higher achieved power 784 price, supported by higher 416 25 86 hedge price, strengthened -29 earnings -15 388 61 698 698 Consumer Solutions
Slide 11: Solid financial position - Balance sheet as per 31 March 2023
Solid financial position - Balance sheet as per 31 March 2023 – including Russia MEUR 31-Mar-23 31-Dec-22 MEUR 31-Mar-23 31-Dec-22 Property, plant and 7,170 7,266 Total equity 9,793 7,737 IFRS equity up quarter-on-quarter equipment and right-of- impacted by hedging effect use assets Derivative finan
Slide 12: Leverage at very low level, net and gross debt down
Leverage at very low level, Solid credit metrics net and gross debt down Financial net debt (incl. Russia) 1 084 'BBB' long-term issuer credit rating, Stable outlook 794 583 81 'BBB' long-term issuer credit rating, 4 71 144 Stable outlook Fortum’s objective: Financial net CF from Investments Divestm
Slide 13: Outlook
Outlook Generation segment Nordic hedges: Tax guidance for 2023-2024: For the remainder of 2023: 70% at EUR 50 /MWh Comparable effective income tax rate for For 2024: 45% hedged at EUR 43 /MWh Fortum’s continuing operations is estimated to (at the end of 2022: 45% at EUR 42 /MWh) be in the range of
Slide 14: ILLUSTRATIVE balance sheet of Russian deconsolidation effects
ILLUSTRATIVE balance sheet of Russian deconsolidation effects EUR billion Published Russian Translation Illustrative 31-Mar-23 impact difference 31-Mar-23 After deconsolidation: Other assets 17.6 -1.8 0 15.8 Financial net debt-to-Comp EBITDA: Liquid funds 3.7 -0.3 0 3.4 Liquid funds Total assets 21.
Slide 15: @fortum Powering a thriving world
@fortum Powering a thriving world
Slide 16: Appendix
Appendix
Slide 17: Nord Pool system price declined on mild weather and lower gas prices
Nord Pool system price declined on mild weather and lower gas prices Hydro reservoirs Reservoir content (TWh) • Compared to the long-term average, Nordic hydro reservoir levels 120 increased from -5 TWh to -3 TWh (rel. normal) during Q1. Both inflow 100 and the hydro generation were somewhat below n
Slide 18: Generation: Higher achieved power price
Generation: Higher achieved Volumes (TWh) power price Q1'23 Q1'22 5,0 5,4 6,5 6,3 Q1 2023 vs. Q1 2022 Hydro Nuclear • Comparable operating profit more than doubled • Total power generation in the Nordic countries remained on the same level as in Q1 2022. MEUR I/2023 I/2022 2022 LTM • The achieved po
Slide 19: Consumer Solutions: Earnings significantly down
Consumer Solutions: Earnings Number of customers (‘000) 2 280 2 240 significantly down Q1 2023 vs. Q1 2022 • Comparable operating profit decreased by EUR 29 million and was EUR 6 million mainly due to lower sales margins. MAR 23 DEC 22 – Losses due to customer outflow in certain hedged contracts in
Slide 20: @fortum Powering a thriving world
@fortum Powering a thriving world