Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q2 2020 Earnings Presentation
27 slides from Elmera Group Asa's earnings presentation, Aug 20, 2020
Slide 1: Q2 2020 Presentation
Q2 2020 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) 20th August
Slide 2: Q2 2020 Highlights
Q2 2020 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights second quarter 2020
Highlights second quarter 2020 Another strong quarter Key Highlights 1 • Strong financial performance with a 15% YoY increase # of deliveries (end of period) Δ in # of deliveries (QoQ) in net revenue and 26% YoY growth in EBIT adj. 624 910 3 562 • Tailwind from favourable price development throughou
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Fjordkraft acquires Innlandskraft and strengthens its position as the leading electricity supplier in Norway
Fjordkraft acquires Innlandskraft and strengthens its position as the leading electricity supplier in Norway Key info and strategic rationale • Innlandskraft comprises two brands, Gudbrandsdal Energi and Eidsiva Marked, ~240k electricity deliveries and is the third largest electricity retailer in No
Slide 6: Market development
Market development Key highlights in Q2 2020 Weekly elspot prices (NOK/kWh)2 • Continued and historically low elspot prices 0,6 throughout the quarter mainly driven by hydrology 0,5 0,4 • Varied temperatures in the quarter, with a record 0,3 warm June – 2nd warmest since 19001 0,2 - Apr: +1.2°C abov
Slide 7: Segment development - Consumer
Segment development - Consumer Key highlights in Q2 2020 # of electricity deliveries1 (‘000) • Increase of 2,060 deliveries in Q2 2020 600 • Volume growth of 12% YoY, mainly driven by 400 increase in avg. volume per delivery 532 542 544 542 544 - Avg. volume per delivery is increasing 10% YoY 200 2,
Slide 8: Segment development - Business
Segment development - Business Key highlights in Q2 2020 # of electricity deliveries1 (‘000) • Increase of 1,502 deliveries in Q2 2020 80 60 • Volume decrease 5% YoY driven by decrease in avg. consumption per delivery from fewer tender 40 76 78 78 79 81 customers and Covid-19 - Avg. volume per deliv
Slide 9: New Growth Initiatives
New Growth Initiatives Key highlights in Q2 2020 # of Mobile subscribers1 (‘000) • The strong growth continues within Mobile 120 - Growth of 7,671 subscribers in Q2 2020 80 110 118 92 100 40 81 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 • 1% YoY Alliance volume increase • Extended Alliance growth of 9,288 deli
Slide 10: Financial Review
FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)
Slide 11: Strong net revenue growth
Strong net revenue growth Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +15% 1 600 400 +21% 300 2 (3) 1 200 39 200 800 1 387 1 427 314 1 184 1 216 1 284 274 100 400 0 0 Q2 19 Consumer Business NGI Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 • Adj. net revenue growth driven ~75/25 by margin i
Slide 12: Continued increase in EBIT adj.
Continued increase in EBIT adj. Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 150 +26% +28% 800 50% 1 (4) 29 40% 600 40% 100 39% 38% 37% 38% 30% 400 124 20% 50 98 547 572 446 450 491 200 Adj. EBIT Adj. EBIT 10% margin: 36% margin: 40% 0 0 0% Q2 19 Consumer Business NGI Q2 20 Q2 19 Q3 19 Q4 19 Q1 2
Slide 13: Segment overview
Segment overview Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +20% 400 400 300 300 300 +3% 200 362 200 200 -5% 264 230 100 191 180 100 100 73 70 95 108 75 10,4 9,1 12,4 11,5 9,9 0 0 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 2
Slide 14: NWC development
NWC development Net working capital1 (NOKm) 800 • Net working capital (NWC) is decreasing by 277 NOKm from last quarter, driven by decreasing prices and lower 700 volumes 151 600 • Volume decrease 33% from last quarter2 500 • Elspot prices decrease 61%3 from Q1 2020 to Q2 400 150 2020 300 594 154 •
Slide 15: Strong underlying cash generation
Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 1 000 (22) 900 (26) (5) 162 800 (314) 700 277 600 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 114m 500 400 300 583 511 200 100 - Net cash 31.03.20 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC
Slide 16: Outlook for 2020-2022
Outlook for 2020-20221 A revised outlook including the Innlandskraft acquisition will be announced at Q3 reporting, after closing of the transaction Targeting high-single digit net revenue growth on an organic basis Revised in Q2: Expecting above double digit Group Targeting an EBIT margin of 36
Slide 17: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 18: Appendix
Appendix — ler for pengene
Slide 19: Profit and loss account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q2 2020 19
Slide 20: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q2 2020 20
Slide 21: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q2 2020 21
Slide 22: Balance sheet
BALANCE SHEET | Quarterly Presentation | Q2 2020 22
Slide 23: Balance sheet
BALANCE SHEET | Quarterly Presentation | Q2 2020 23
Slide 24: Cash flow
CASH FLOW | Quarterly Presentation | Q2 2020 24
Slide 25: Cash flow
CASH FLOW | Quarterly Presentation | Q2 2020 25
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: Fjordkraft's Investor Relations
For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no