Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q1 2024 Earnings Presentation
16 slides from Fortum Oyj's earnings presentation, Apr 29, 2024
Slide 1: Interim Report January-March 2024
Interim Report January-March 2024 Fortum Corporation 30 April 2024
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Quarterly highlights Q1 2024
Quarterly highlights Q1 2024 Drive Deliver reliable clean decarbonisation of • Solid performance, good results and energy industries strong financial position Pjelax wind farm operational Development of • Strong optimisation premium industrial sites Espoo CHP coal exit and • Credit rating upgrade by
Slide 4: Solid financial performance and good results despite lower power prices in Nordics
Solid financial performance and good results Q1 2024 despite lower power prices in Nordics Operating profit The Generation segment result Key financial indicators for continuing operations declined, while Consumer Solutions and Other Operations segments improved. Comp. OP Comp. EPS OCF Leverage 0.54
Slide 5: After a cold start of the year, Nordic power prices eased off
After a cold start of the year, Nordic power prices eased off Volatile weather drove Nordic power in Q1 • Nordic spot prices overall developed sideways during Q1, whereas the futures market softened with a mild ending of the winter period. • Power prices were elevated by very cold weather in January
Slide 6: Tiina Tuomela, CFO
Tiina Tuomela CFO @fortum Powering a thriving world
Slide 7: Lower result but stronger cash flow
Lower result but stronger cash flow Lower power prices reflected in the result (LTM) MEUR, continuing operations I/2024 I/2023 LTM 2023 Sales 2,015 2,265 6,461 6,711 • Comparable operating profit at EUR 1,376 m Comparable EBITDA 622 781 1,744 1,903 Comparable operating profit 530 698 1,376 1,544 • C
Slide 8: Group results mainly impacted by lower achieved power price
Group results mainly impacted by lower Q1/2024 achieved power price Generation Comparable operating profit Lower earnings down mainly due to (EUR million) lower spot and hedge power prices, somewhat offset by higher hydro generation and higher optimisation premium. Achieved power price of 63.9 €/MWh
Slide 9: Balanced maturity profile and strong liquidity position
Balanced maturity profile and Solid credit metrics strong liquidity position 942 Financial net debt 'BBB+' long-term issuer credit rating, Stable outlook 538 'BBB' long-term issuer credit rating, 44 34 528 Stable outlook 0 114 Fortum’s objective: Maintain solid investment grade rating of at least BB
Slide 10: Outlook
Outlook Generation’s Nordic outright (47 TWh/a): Capital expenditure guidance: Hedges 2024: Capital expenditure, including maintenance capex, (excluding potential acquisitions) expected • For the rest of 2024: 70% hedged at 43 €/MWh to be ~€ 550 million (previously reported: N/A) Annual maintenance
Slide 11: Q&A
Q&A L COO | @fortum Powering a thriving world
Slide 12: Appendix
@fortum 12 Powering a thriving world
Slide 13: Nordic hydro reservoirs and wholesale power price
Nordic hydro reservoirs and wholesale power price Hydro reservoirs Power price Reservoir content (TWh) EUR/MWh 120 500 Realised daily system price 100 Futures 25 April 2024 400 80 300 60 200 40 Norway 100 20 Sweden 2003 2020 2022 2023 2024 Average Finland 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 14: Generation: Achieved power price at 63.9 € per MWh
GENERATION: Achieved power price at Volumes, TWh I/2024 I/2023 63.9 € per MWh Q1/2024 vs. Q1/2023 6.7 6.5 5.5 5.0 • Comparable operating profit down by 29% to EUR 513 mn 0,2 0 – Mainly due to the lower spot and hedge prices, partly offset by Hydro Nuclear Wind higher hydro volumes and higher optimis
Slide 15: Consumer Solutions: Improved and more normalised results
CONSUMER SOLUTIONS: Improved and more normalised Number of customers (‘000) results 2 360 2 380 Q1/2024 vs. Q1/2023 • Comparable operating profit increased by EUR 36 million to EUR 42 million – Mainly due to higher electricity sales margins and higher sales margins for value-added services, the effe
Slide 16: Other Operations: Results improved slightly
OTHER OPERATIONS: Results improved slightly Q1/2024 vs. Q1/2023 • Comparable operating profit improved by EUR 6 million to EUR -25 million. – As part of the ongoing organisational changes and efficiency MEUR I/2024 I/2023 LTM 2023 improvement measures, internal charges for enabling Sales 144 136 556