Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — H1 2021 Earnings Presentation
20 slides from Fortum Oyj's earnings presentation, Aug 17, 2021
Slide 1: Half-year Financial Report January-June 2021
Half-year Financial Report January-June 2021 Fortum Corporation 17 August 2021
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO 2 Fortum Interim Report January-June 2021
Slide 3: Market environment is improving
Market environment is improving • Macroeconomic outlook is improving, and global growth forecasts have been upgraded lately as vaccination efforts appear to reduce disruptive effects of new Covid-19 waves on economic activity • Strong year-on-year European demand growth reflects recovery from the ve
Slide 4: Determined execution of our strategy
Determined execution of our strategy • We deliver • We deliver • We deliver on our plans on our strategy on our way to net-zero Use of coal in Fortum's Russia Solid operational performance Divestments concluded segment to cease at the end of across segments of up to EUR 5.2 billion 2022 Financial pe
Slide 5: Good operational performance across the group despite phasing effects
Good operational performance across the group despite phasing effects Comp. OP* Comp. EPS** OCF Leverage*** H1 1206 2,4 1.09 1002 1120 <2 1,03 596 0,18 Higher achieved power prices 0,91 and higher generation volumes H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 Target LTM Uniper fully consolidated
Slide 6: H1, all segments improved – significant impact from Uniper profits
H1, all segments improved – significant impact from Uniper profits Comparable operating profit (EUR million) 510 -1 1206 Generation higher achieved power price Russia stronger underlying performance offsetting negative FX 39 4 55 2 596 City Solutions higher power and heat sales Consumer Solutions hi
Slide 7: Q2 – Significant phasing effects in Uniper segment
Q2 – Significant phasing effects in Uniper segment Comparable operating profit (EUR million) Generation successful physical optimisation partly 11 0 -201 offset by slightly higher costs 22 0 203 Russia stronger underlying performance offsetting lower CSAs City Solutions higher power sales Consumer S
Slide 8: Determined execution of our transformation strategy continues
Determined execution of our transformation strategy continues Strengthening balance sheet Accelerated decarbonisation Balanced growth EUR 5.2 billion of divestments in 1.5 Fortum Russia division end of coal-fired Leverage target: years generation by end of 2022 Financial net debt/ • Stockholm Exergi
Slide 9: Bernhard Günther, CFO
Bernhard Günther CFO 9
Slide 10: Key financials
Key financials MEUR II/ II/ I-II/ I-II/ FY LTM 2021 2020 2021 2020 2020 H1 strong financial performance Sales 17,128 12,330 38,621 13,687 49,015 73,950 LTM comparable EBITDA at EUR 3.2 Comparable EBITDA 348 512 1,827 1,055 2,434 3,206 billion Comparable operating profit 35 203 1,206 596 1,344 1,954
Slide 11: Generation: Higher achieved power prices
Generation: Q2 Q2'21 Q2'20 Higher achieved power prices Volumes (TWh) 5,5 5,1 5,4 5,6 0,0 0,1 Q2 2021 vs. Q2 2020 Hydro Nuclear Wind • Comparable operating profit +13% mainly due to higher achieved H1 H1'21 H1'20 Volumes power prices and slightly higher volumes (TWh) 12,2 11,5 11,8 11,9 – Higher ach
Slide 12: Hydro reservoirs
Nordic hydro reservoirs close to normal levels, strong spot prices influenced by Continental European power prices Reservoir content (TWh) • High hydro power generation and below normal Hydro reservoirs 120 precipitation led to normalisation of reservoirs 100 80 • Nordic reservoirs 3 TWh above long-
Slide 13: Higher achieved power prices
Higher achieved power prices System spot power price, Nord Pool Achieved power price, Generation segment EUR/MWh EUR/MWh 48 42,1 41,9 42 37,1 35,2 37,2 38,1 Substantially higher spot 33,6 40 35 power prices in the Nordics 32 28 24 21 Increased achieved power 16 13,8 14 5,6 8,9 7 prices 8 0 0 Q2/2020
Slide 14: Russia: Solid underlying performance
Russia: Q2 Q2'21 Q2'20 Solid underlying performance Volumes (TWh) 6,1 5,4 2,4 2,5 Q2 2021 vs. Q2 2020 Power Heat • Comparable operating profit flat at EUR 37 million H1 H1'21 H1'20 Volumes – Changes in CSA* payments, lower bond yield, and higher power prices (TWh) 14,6 13,8 9,9 8,7 – Impact of the R
Slide 15: City Solutions: Performance improved
City Solutions: Q2 Q2'21 Q2'20 Performance improved Volumes (TWh) 1,8 2,0 0,8 0,6 Q2 2021 vs. Q2 2020 Power Heat • District heating with higher power prices and higher power sales H1 H1'21 H1'20 Volumes (TWh) 6,2 5,6 2,1 1,5 Power Heat H1 2021 vs. H1 2020 MEUR II/ II/ I-II/ I-II/ FY 2021 2020 2021 2
Slide 16: Consumer Solutions: Continued profitability improvement
Consumer Solutions: Number of Continued profitability improvement customers Q2 2021 2 320 Q4 2020 2 390 Q2 2021 vs. Q2 2020 • Comparable operating profit flat MEUR II/ II/ I-II/ I-II/ FY 2021 2020 2021 2020 2020 LTM • 15th consecutive quarter of comparable EBITDA improvement Sales 424 237 1,085 661
Slide 17: Uniper: Solid underlying performance
Uniper: Q2 Q2'21 Q2'20 9,5 9,4 Solid underlying performance Volumes (TWh) 3,2 3,5 2,9 2,8 8,4 5,3 Hydro Nuclear Thermal CE Thermal RUS Q2 2021 vs. Q2 2020 • European Generation business benefitted from Irsching 4 & 5 H1 H1'21 H1'20 Volumes* 21,9 and Datteln 4 contribution (TWh) 19,1 9,4* 6,6 3,5* 6,
Slide 18: Credit outlook improved
Credit outlook improved Solid credit metrics debt debt 'BBB' long-term issuer credit rating, netnet stable outlook 'BBB' long-term issuer credit rating, Financial stable outlook Financial Target ratio: < 2x Financial net debt / Comp. EBITDA Fortum’s objective: Maintain solid investment grade rating
Slide 19: Outlook
Outlook Hedging 2021 Estimated annual capital Russia Generation Nordic hedges: expenditure, including maintenance CSA changes: For the rest of 2021: 75% hedged at EUR and excluding acquisitions, of Lower bond yield, bond yield 6.3% (7.6%) 33 per MWh For 2022: 60% hedged at EUR 31 per EUR 1,400 milli
Slide 20: Q&A
Q&A