Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q2 2019 Earnings Presentation
26 slides from Elmera Group Asa's earnings presentation, Aug 22, 2019
Slide 1: Q2 2019 Presentation
Q2 2019 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 22th August
Slide 2: Q2 2019 Highlights
Q2 2019 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights second quarter 2019
Highlights second quarter 2019 Another solid quarter driven by strong price management and favourable market dynamics Key Highlights 1 • Strong YoY growth in net revenue adj. and EBIT adj. driven by # of deliveries (end of period) Δ in # of deliveries (QoQ) strong price management and favourable mar
Slide 4: Agreement to acquire Vesterålskraft Strøm ("VKS")
Agreement to acquire Vesterålskraft Strøm (“VKS”) Transaction highlights Customer portfolio (‘000) Clear strategic rationale for acquiring VKS o Strong strategic fit – a regional office enabling increased 8.6 7.8 market share in the northern part of Norway 7.1 o Leveraging from long-lasting Allian
Slide 5: Solar panels now available to the Consumer segment
Solar panels now available to the Consumer segment • Consumer customers can now order solar panels for their homes through Fjordkraft • Three different panel offerings with different outputs and prices • The majority of consumers want to finance it on their own. Financing might be offered in the fut
Slide 6: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 7: Market development
Market development Key highlights in Q2 2019 Weekly elspot prices (NOK/kWh)2 • The decrease in elspot prices from Q1 continues – 0,6 beneficial for variable products 0,5 • Warmer than normal weather in two out of three 0,4 months, having a negative impact on average 0,3 consumption per delivery1 0,2
Slide 8: Segment development - Consumer
Segment development - Consumer Key highlights in Q2 2019 # of electricity deliveries1 (‘000) • Positive organic development quarter over quarter 600 and a positive trend within the quarter 500 - Net additions in Q2 2019 were 1,471, all of which organic 400 • Stable volume development YoY. The decrea
Slide 9: Segment development - Business
Segment development - Business Key highlights in Q2 2019 # of electricity deliveries1 (‘000) • A slight decrease in number of deliveries, driven by 90 loss of tender customer. Limited financial impact 80 70 - Net additions in Q2 2019 were -560 60 50 • Volume decrease 1% YoY. Decrease in avg. volume
Slide 10: New Growth Initiatives
New Growth Initiatives Key highlights in Q2 2019 # of Mobile subscribers1 (‘000) • Strong development with an accelerating growth in 90 number of mobile subscribers. Highest quarterly 80 growth since Q1 2018 70 60 - Growth of 9,446 subscribers in Q2 2019 50 40 81 66 72 30 57 61 • -6% YoY Alliance vo
Slide 11: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 12: Net revenue improvement across all segments
Net revenue improvement across all segments Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +13% 1 400 300 +18% 10 5 1 200 250 16 1 000 200 800 150 274 600 1 152 1 184 242 1 005 1 048 1 088 100 400 50 200 0 0 Q2 18 Consumer Business NGI Q2 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 • Successful
Slide 13: Strong adj. EBIT performance
Strong adj. EBIT performance Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 120 +23% +26% 500 40% 100 3 9 400 36% 36% 36% 37% 37% 8 30% 80 300 60 20% 98 425 446 200 379 390 40 78 364 10% 20 Adj. EBIT Adj. EBIT 100 margin: 32% margin: 36% 0 0 0% Q2 18 Consumer Business NGI Q2 19 Q2 18 Q3 18 Q4 18 Q1
Slide 14: Solid growth in all segments
Solid growth in all segments Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 300 +10% 300 300 250 250 250 200 200 200 +18% 150 150 150 +86% 267 100 213 191 100 100 174 156 50 50 83 97 73 50 62 65 5,6 6,7 9,3 14,3 10,4 0
Slide 15: Seasonally lower volume and decreasing elspot prices driving NWC decrease QoQ
Seasonally lower volume and decreasing elspot prices driving NWC decrease QoQ Net working capital1 (NOKm) 1 200 • Net working capital (NWC) decreased by 471 NOKm from last quarter due to seasonally lower volume and decrease in prices. 1 000 • Prices decrease 24%2 and volume decrease 142 39%3 from Q1
Slide 16: From net debt to net cash – driven by seasonal decrease in NWC
From net debt to net cash– driven by seasonal decrease in NWC. Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 400 (12) (28) 300 30 135 200 292 100 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 95m - (23) 471 (100) (230) (200) (300) Net cash 31.03.19 Dividend Change i
Slide 17: Outlook
Outlook Revised CAPEX target Targeting high-single digit net revenue growth on an organic basis Group Targeting a stable EBIT margin on an organic basis Ambition to act as a consolidator in a fragmented market Revised after Q1 2019: Expected to be Growth Targeting mid-single digit net revenu
Slide 18: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 19: Appendix
Appendix — ler for pengene
Slide 20: Profit and loss account
PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q2 2019 Q2 2018 ∆ YoY Gross revenue 1 428.8 1 297.3 131.4 Cost of sales -1 145.6 -1 048.6 -96.9 Net revenue 283.2 248.7 34.5 Personnel expenses -47.9 -40.7 -7.2 Other operating expenses -92.5 -95.4 2.9 Operating expenses -140.4 -136.1 -
Slide 21: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation NOK in thousands Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Revenue adjusted 1 373 782 1 284 466 3 919 416 3 200 471 6 712 291 Corporate 1) 54 969 12 879 54 969 12 879 8 657 Revenue 1 428 751 1 297 345 3 974 385 3 213 350 6 720 948 Direct cost of sales adjusted (1 099 954
Slide 22: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. 2) Special items consists of one-time items as follows: NOK in thousands Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Special items incurred specific to: - the process of listing the company on Oslo Stock Exchange - (124) - (11 022) (11 323) - acquisition related cost
Slide 23: Balance sheet
BALANCE SHEET Summary reported financials NOK million Q2 2019 Q2 2018 ∆ Intangible assets 190.5 198.8 (8.2) PP&E 31.5 4.2 27.3 Goodwill 155.8 150.9 5.0 Financial assets 22.6 17.2 5.4 Other non-current assets 151.8 154.0 (2.3) Total non-current assets 552.3 525.2 27.1 Trade receivables 1 074.8 1 054.
Slide 24: Cash flow
CASH FLOW Summary reported financials NOK million Q2 2019 Q2 2018 ∆ YoY EBITDA 142.7 114.6 28.0 Payments to obtain a contract (contract assets) -28.2 -27.9 -0.3 Other non-cash adjustments -7.9 -8.1 0.2 Change in fair value of financial instruments 0.1 -2.0 2.1 Changes in working capital, etc. 449.0
Slide 25: 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 26: 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