Slide 1: Quarterly presentation Q2 2022
Quarterly presentation Q2 2022 ROLF BARMEN (CEO) MORTEN OPDAL (ACTING CFO) ROGER FINNANGER (EVP HEAD OF BUSINESS)
Slide 2: Elmera Group – brands and corresponding reporting segments
Elmera Group – brands and corresponding reporting segments Investments in New Growth Consumer Business Nordic associates and Initiatives joint ventures Quarterly presentation | Q2 2022 22
Slide 3: Highlights Q2 2022
Highlights Q2 2022 • Solid financial results despite low consumption volumes in the quarter • Group net revenue of 403 NOKm (+4% YoY) and EBIT adj. of 123 NOKm (-13% YoY) in the quarter • Significant positive shift in trend in the customer development in the Consumer segment, with a stable customer
Slide 4: Market development Q2 2022: High and volatile prices
Market development Q2 2022: High and volatile prices Weekly elspot prices (NOK/kWh)1 • Elspot prices remain at a very high level. Significant area price 2,5 difference between the various regions and high volatility • Significant peak/off-peak price differences in Finland and Sweden 2,0 • The Nordic
Slide 5: Key figures: Deliveries and volume per segment
DELIVERIES AND VOLUME PER SEGMENT Key figures Consumer segment Business segment Nordic segment Deliveries (thousands) 726 726 692 663 661 111 112 111 115 117 167 166 171 177 164 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 -15% avg. volume -7% avg. volume
Slide 6: New Growth Initiatives
New Growth Initiatives • Alliance volume 936 GWh in Q2 2022, a decrease of 14% YoY due to high elspot prices and a mild June • Number of Extended Alliance deliveries increase by 1,345 from last quarter • Number of mobile subscribers Q2 2022 was 148 thousand, a decrease of 5 thousand from last quarte
Slide 7: Update on regulatory and political issues
Update on regulatory and political issues Local regulatory and political issues are affected by geopolitical issues (The war) and hydrology • The geopolitical situation continues – leading to extreme price levels and volatility, affecting costs related to power purchase • Russia vs Ukraine - highly
Slide 8: Product management in the Consumer segment
Product management in the Consumer segment
Slide 9: Spot with risk management – an attractive offering in the Consumer segment
Spot with risk management – an attractive offering in the Consumer segment Example: 20,000 kWh annual consumption NOK per year ~20,000 customers and growing rapidly ~8 300 ~2 700 ~1 000 Net revenue regular spot Net revenue Spot with risk Customer savings Spot with contract management management last
Slide 10: Financial review Q2 2022
Financial review Q2 2022 MORTEN OPDAL (ACTING CFO)
Slide 11: Group net revenue adj. and EBIT adj.
Group net revenue adj. and EBIT adj. Group Net revenue adj. (NOKm) Group EBIT adj. (NOKm) (9) 6 4 (19) 14 10 (9) (0) 141 123 123 388 403 403 Q2 21 Consumer Business NGI Nordic Q2 22 Q2 21 Consumer Business NGI Nordic Q2 22 • Group net revenue adj. increase 4% YoY. Strong margins despite volume decre
Slide 12: Net revenue and EBIT adj. by segment
Net revenue and EBIT adj. by segment Consumer segment Business segment Net revenue adj. (NOKm) Net revenue adj. (NOKm) 400 400 Consumer: 300 300 • Significant positive effects from 200 200 hedging and otherwise strong 317 margins resulting in stable net 240 265 240 100 229 100 revenue YoY, despite 2
Slide 13: Net revenue and EBIT adj. by segment
Net revenue and EBIT adj. by segment Nordic segment New Growth Initiatives segment Net revenue adj. (NOKm) Net revenue adj. (NOKm) 50 100 Nordic: 25 75 • No under-hedging in the quarter 35 31 32 27 • The peak/off-peak price 0 50 differences continue to affect the segment negatively, particularly in
Slide 14: NWC and net cash position – “Cash EBIT adj.” ~ EBIT adj.
NWC and net cash position – “Cash EBIT adj.” ~ EBIT adj. Net cash (NOKm) Net working capital (NOKm) 117 (1 153) «Cash EBIT adj.» in the quarter: 615 NOK 118m (1 479) (14) (53) 170 186 (533) - 538 (15) Net cash Change in EBITDA adj. CAPEX ex. Payments to Dividend and Non-cash Net cash 31.03.22 NWC M&
Slide 15: Organic financial targets 2022-2023
Organic financial targets 2022-2023 Targeting a net revenue in the area of NOK 1,600-1,650m for 2022 and 2023 Group EBIT adj. in the area of NOK 500-550m for 2022 and 2023. 2022 expected in the lower end of the interval (EBIT adj. margin in the area of 30-34%) Cap.ex Targeted to be in the area
Slide 16: Q2 Business
Q2 Business EVP Business – Roger Finnanger 18. AUGUST 2022
Slide 17: Nordic Management Group - Business
NEW ORGANIZATION Nordic Management Group - Business Roger Finnanger EVP Business Serve all our Strengthen sales brands with risk and distribution in mitigating power all brands agreements Product Management New energy solutions Power Develop and Profitable growth launch digital Product Management in
Slide 18: Offering a unique range of services to handle all risk associated with power purchasing
Cost control: Offering a unique range of services to handle all risk associated with power purchasing Our customers have saved more than 650 Risk mitigating services Minimizing price fluctuation NOKm from risk mitigating Businesses seeking to manage their products ytd. electricity cost can combine s
Slide 19: Risk management products attract new customers in the Norwegian market
Risk management products attract new customers in the Norwegian market Customer base: Comments 200 TWh 5 100% +6,47 150 4 68% 71% 72% 117 64% 65% 111 112 111 115 3 • 6 % deliveries growth YoY 100 2 2 50% • 72 % share of volume delivered with risk management products 2 2 2 50 1 • Targeting 75 % risk
Slide 20: Demand driven by the green shift and high power prices
NGI New energy solutions: Demand driven by the green shift and high power prices Value propositions Scalable capacity Solar energy solutions 373 Pre - installation: • Advisory services • Free online calculation of the customers roof • Green loans 191 • PPA for large customers After – installation: •
Slide 21: Key actions going forward
Organised for further growth: Key actions going forward Starting up telemarketing in Gudbrandsdal Energi in August Launching risk management products in Gudbrandsdal Energi in Q3 Launching risk management products in Nordic Green Energy in Q4 Further strengthen sales distribution Launch of our new d
Slide 22: Q&A
Q&A ElmeraGroup
Slide 23: Appendix
Appendix a Elmera Group
Slide 24: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation Quarterly presentation | Q2 2022 24
Slide 25: Profit and Loss account
Profit and Loss account Quarterly presentation | Q2 2022 25
Slide 26: Balance sheet
Balance sheet Quarterly presentation | Q2 2022 26
Slide 27: Balance sheet
Balance sheet Quarterly presentation | Q2 2022 27
Slide 28: Cash flow
Cash flow Quarterly presentation | Q2 2022 28
Slide 29: Cash flow
Cash flow Quarterly presentation | Q2 2022 29