Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q3 2020 Earnings Presentation
30 slides from Elmera Group Asa's earnings presentation, Nov 12, 2020
Slide 1: Q3 2020 Presentation
Q3 2020 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) 12th November
Slide 2: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights third quarter 2020
Highlights third quarter 2020 Strong growth - both financially and in number of customers Key Highlights 1 • Strong financial performance with a 10% YoY increase # of deliveries (end of period) Δ in # of deliveries (QoQ) in net revenue and 25% YoY growth in EBIT adj. 865 545 240 635 • Solid growth,
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Fjordkraft acquires Switch Nordic Green and becomes a Nordic electricity retailer
Fjordkraft acquires Switch Nordic Green and becomes a Nordic electricity retailer Key info and strategic rationale • SNG is a Nordic electricity retailer with operations in both Sweden and Finland, 167 thousand electricity deliveries, of which 100 thousand in Finland and 67 thousand in Sweden. 27 th
Slide 6: Innlandskraft acquisition developing as planned
Innlandskraft acquisition developing as planned Transaction costs, implementation costs and synergies • The transaction was completed on 22 September 2020 • Organisational changes have been made to support synergy realisation. Severance packages have been offered to all employees affected by the reo
Slide 7: Update on Covid-19 and the Consumer Council allegations
Update on Covid-19 and the Consumer Council allegations • A second wave of Covid has struck Norway, resulting in new protective measures from the government • Door to door and stand sales have been stopped in order to limit spreading of Covid-19. Along with an expected reduction in physical Christma
Slide 8: Market development
Market development Key highlights in Q3 2020 Weekly elspot prices (NOK/kWh)2 • The historically low elspot prices continued into Q3, with a spike in prices early September • Two out of three months in the quarter were colder than last year1 - Jul: -0.6°C below normal (-1.9°C colder than 2019) - Aug:
Slide 9: Segment development - Consumer
Segment development - Consumer Key highlights in Q3 2020 # of electricity deliveries1 (‘000) • Strong organic growth of 5,225 deliveries in Q3 800 2020 - Deliveries from Innlandskraft included as of 30 September 600 • Volume growth of 5% YoY, driven by both increase 400 761 in avg. volume per delive
Slide 10: Segment development - Business
Segment development - Business Key highlights in Q3 2020 # of electricity deliveries1 (‘000) • Organic growth of 634 deliveries in Q3 2020 120 - Deliveries from Innlandskraft included as of 30 September 80 • Volume growth of 3% YoY driven by growth in # of 104 deliveries 40 78 78 79 81 - Avg. volume
Slide 11: New Growth Initiatives
New Growth Initiatives Key highlights in Q3 2020 # of Mobile subscribers1 (‘000) • Growth of 4,691 mobile subscribers in Q3 2020 120 80 • 2% YoY Alliance volume increase 110 118 122 92 100 40 • A strong pipeline of both Ordinary and Extended Alliance partners expected to be implemented in Q4 2020 0
Slide 12: Financial Review
FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)
Slide 13: Continued net revenue growth
Continued net revenue growth Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +10% 1 600 400 +19% 300 1 200 25 2 (3) 200 800 1 387 1 427 1 452 1 216 1 284 259 284 100 400 0 0 Q3 19 Consumer Business NGI Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 • Adj. net revenue growth driven ~2/3 by margin
Slide 14: Strong increase in EBIT adj.
Strong increase in EBIT adj. Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 100 +25% +31% 800 50% 1 (3) 18 40% 600 41% 38% 39% 40% 37% 30% 50 400 79 20% 63 547 572 588 450 491 200 Adj. EBIT Adj. EBIT 10% margin: 24% margin: 28% 0 0 0% Q3 19 Consumer Business NGI Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20
Slide 15: Segment overview
Segment overview Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +14% 400 400 300 300 300 +3% 200 362 200 200 -18% 264 230 100 180 205 100 100 70 95 108 75 72 9,1 12,4 11,5 9,9 7,5 0 0 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 2
Slide 16: NWC development
NWC development Net working capital1 (NOKm) 800 • Net working capital (NWC) is decreasing by 114 NOKm from last quarter 151 600 • Volume decrease 15% from last quarter2 • Elspot prices increase 52%3 from Q2 2020 to Q3 2020 400 594 154 • Reduction of 109 NOKm from last year. Prices decrease by 72% Yo
Slide 17: Strong underlying cash generation
Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 1 000 800 (13) (38) 31 122 114 600 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 71m (532) 400 583 200 266 - Net cash 30.06.20 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC Acquisition of Net ca
Slide 18: Outlook for 2020-2022
Outlook for 2020-20221 One positive revision on the Group’s organic outlook for 2020 Targeting high-single digit net revenue growth on an organic basis Revised in Q2: Expecting above double digit net revenue growth in 2020 Group Targeting an EBIT margin of 36-38% Revised in Q3: Expecting a sligh
Slide 19: Innlandskraft's effect on Q4 EBIT adj. and depreciation profile
Innlandskraft’s effect on Q4 EBIT adj. and depreciation profile EBIT adj. contribution in Q4 2020 • Innlandskraft’s contribution to the Group’s EBIT adjusted in Q4 is expected to be in the area of NOK 25-30m Depreciation profile of the acquisition (NOKm) Q4 2020 2021 2022 2023 2024 2025 2026 2027 20
Slide 20: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 21: Appendix
Appendix — ler for pengene
Slide 22: Profit and Loss Account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q3 2020 22
Slide 23: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q3 2020 23
Slide 24: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q3 2020 24
Slide 25: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q3 2020 25
Slide 26: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q3 2020 26
Slide 27: Cash Flow
CASH FLOW | Quarterly Presentation | Q3 2020 27
Slide 28: Cash Flow
CASH FLOW | Quarterly Presentation | Q3 2020 28
Slide 29: 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 30: For more information
For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no