Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q4 2018 Earnings Presentation
27 slides from Elmera Group Asa's earnings presentation, Feb 14, 2019
Slide 1: Q4 2018 Presentation
Q4 2018 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 14th February
Slide 2: Q4 2018 Highlights
Q4 2018 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights fourth quarter 2018
Highlights fourth quarter 2018 Strong performance in a competitive quarter Key Highlights 2 • Adjusted net revenue was NOK 304.6m, +15% YoY # of deliveries (end of period) Net change in # of deliveries • Adjusted EBIT increased +12% YoY and was NOK 107.1m 604 973 8 687 • +14% YoY growth in deliverie
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Market development
Market development Key highlights in Q4 2018 Weekly elspot prices (NOK/kWh)3 • Increasing prices throughout the fourth quarter 0,6 - Q4 2018 elspot prices 56% higher than in Q4 20171 0,5 • Warmer than normal weather in three out of three 0,4 months2 0,3 - October: +0.5°C above normal 0,2 - November:
Slide 6: Segment development - Consumer
Segment development - Consumer Key highlights in Q4 2018 # of electricity deliveries1 (‘000) • Strong organic development quarter over quarter 600 - Net additions in Q4 2018 were 9.460, of which 3.698 500 organic 400 - The deliveries from Oppdal and Etne acquisitions 300 included as of Q4 2018, amou
Slide 7: Segment development - Business
Segment development - Business Key highlights in Q4 2018 # of electricity deliveries1 (‘000) • Decrease in deliveries driven by loss of tender 90 contract - limited financial impact 80 70 - Net additions in Q4 2018 were -773 60 50 - The deliveries from Oppdal and Etne acquisitions 40 75,8 76,4 75,7
Slide 8: New Growth Initiatives
New Growth Initiatives Key highlights in Q4 2018 # of Mobile subscribers1 (‘000) • The organic growth in mobile subscribers continues 70 - Growth of 4,763 subscribers in Q4 2018 60 • Continued positive development in mobile margins 50 40 30 61,2 66,0 56,9 • 16% YoY Alliance volume growth 49,4 20 38,
Slide 9: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 10: Continued growth in adj. net revenue
Continued growth in adj. net revenue Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +15% 1 200 +18% 350 300 13 0 1 000 27 250 800 200 600 305 1 005 1 048 1 088 150 924 968 264 400 100 50 200 0 0 Q4 17 Consumer Business NGI Q4 18 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 • Adjusted net revenue inc
Slide 11: Solid adj. EBIT performance
Solid adj. EBIT performance Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) +12% +10% 120 450 45% 2 100 11 400 40% (1) 350 38% 35% 80 37% 36% 36% 36% 300 30% 60 250 25% 107 200 20% 96 361 364 379 390 40 356 150 15% Adj. EBIT Adj. EBIT 100 10% 20 margin: 36% margin: 35% 50 5% 0 0 0% Q4 17 Consumer Bu
Slide 12: Adj. net revenue and adj. EBIT by segment – quarterly
Adj. net revenue and adj. EBIT by segment – quarterly Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 250 +15% 250 250 200 200 200 150 150 +18% 150 223 +3% 100 185 213 100 100 174 156 50 50 82 83 50 70 62 65 9,0 9,1 5,6
Slide 13: Net working capital increasing from last quarter
Net working capital increasing from last quarter Net working capital1 (NOKm) 1 200 • Net working capital (NWC) increased by 49 NOKm from last quarter due to seasonally higher volume. Prices decrease 5%2 from Q3 to Q4 1 000 142 • NWC is increasing 109 NOKm YoY, driven by volume growth (+9%)3 and high
Slide 14: Flat development in net cash position
Flat development in net cash position Change in net debt Q-o-Q (NOKm) - OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 101m (50) (133) (131) (100) 49 (150) 30 (139) 24 (200) 28 10 (250) Net debt Change in NWC EBITDA adj. CAPEX ex. M&A Payments to Purchase of Non-cash NWC Net debt 30.09.
Slide 15: Full Year 2018
FULL YEAR 2018 Birte Strander (CFO)
Slide 16: Group performance stronger than expected
Group performance stronger than expected Adj. net revenue1 (NOKm) Adj. EBIT1 (NOKm) +10% +18% 1 200 400 60% 1 000 350 50% 300 38% 800 Target: 36% 40% Mid-single digit 250 600 revenue growth on 200 30% 1 088 an organic basis 390 356 924 150 400 20% 100 200 10% 50 0 0 0% FY 2017 FY 2018 FY 2017 FY 201
Slide 17: Adj. net revenue and adj. EBIT by segment – Full Year
Adj. net revenue and adj. EBIT by segment – Full Year Consumer segment Business segment New Growth Initiatives Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) 1 000 +16% 1 000 1 000 800 800 800 Target2: Target2: 600 Slightly positive net 600 Above double digits 600 revenue
Slide 18: Performance vs financial targets
Performance vs financial targets1 Targets Status Group Ambition to act as a consolidator in a fragmented market Three acquisitions in 2018 # of Purchase Expected annual Expected annual Acquisition deliveries price synergies 2018 synergies 2019 Status TrønderEnergi ~61,200 278 NOKm >5 NOKm >15 NO
Slide 19: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 20: Appendix
Appendix — ler for pengene
Slide 21: Profit and loss account
PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q4 2018 Q4 2017 Gross revenue 2 179,1 1 409,9 Cost of sales -1 871,6 -1 151,7 Net revenue 307,5 258,2 Personnel expenses -64,7 -60,6 Other operating expenses -103,5 -92,5 Operating expenses -168,2 -153,1 Other gains and losses, net -2,7
Slide 22: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation NOK in thousands Q4 2018 Q4 2017 FY 2018 FY 2017 Adjusted operating profit (before unallocated and estimate deviations) 107 106 95 507 390 142 355 730 Adjustment: (Positive)/negative estimate deviations previous year 1) 2 857 -6 171 5 449 -12 156 Other gains & losses 2)
Slide 23: EBIT adjustments
EBIT adjustments The following adjustments are made to the reported EBIT, in order to give a better representation of underlying performance: 1) Estimate deviations from previous years: A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Grou
Slide 24: Balance sheet
BALANCE SHEET Summary reported financials NOK million Q3 18 Q4 17 ∆ Intangible assets 200,0 82,1 117,9 PP&E 4,1 3,6 0,6 Goodwill 155,8 - 155,8 Financial assets 20,1 14,2 5,9 Other non-current assets 149,9 137,5 12,4 Total non-current assets 529,9 237,4 292,5 Trade receivables 2 006,3 1 364,5 641,8 D
Slide 25: Cash flow
CASH FLOW Summary reported financials NOK million Q4 2018 Q4 2017 ∆ YoY EBITDA 136,6 114,7 22,0 Other non-cash adjustments 2,5 1,6 0,9 Change in fair value of financial instruments 2,7 -9,6 12,3 Changes in working capital, etc. -85,8 -122,2 36,4 Cash from operating activities 56,1 -15,4 71,5 Interes
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
For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no