Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q4 2023 Earnings Presentation
30 slides from Elmera Group Asa's earnings presentation, 2024
Slide 1: Quarterly presentation Q4 2023
Quarterly presentation Q4 2023 ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)
Slide 2: Highlights Q4 2023
Highlights Q4 2023 ROLF BARMEN (CEO)
Slide 3: Group and segment highlights
GROUP Strong operational performance across all segments – historically strong quarter. Cost performance in line with target, annualised run-rate reduced by NOK 100m compared to year-end 2022. Proposed dividend of NOK 2.3 per share. CONSUMER BUSINESS Volume growth YoY. Volume growth YoY. Successful
Slide 4: Financial review Q4 2023
Financial review Q4 2023 HENNING NORDGULEN (CFO)
Slide 5: Key financials Q4 2023
Key financials Q4 2023 Net revenue adj. NOK 474m (NOK 372m) and EBIT adj. NOK 157m (NOK 28m). YoY improvements primarily from the Consumer and Nordic segments. Volume growth YoY due to lower-than-normal temperatures and reduced elspot prices. Opex adj. NOK 317m (NOK 344m) in the quarter, realising t
Slide 6: Market development
Market development Weekly elspot prices (NOK/kWh)1 Monthly supplier changes in Norway (‘000)2 4,0 120 3,5 100 3,0 80 2,5 2,0 60 1,5 40 1,0 20 0,5 0,0 - 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 2 3 4 5 6 7 8 9 10 11 12 2022 2023 2023 2022 2021 2020 Sources: 1) Weekly system prices in NOK
Slide 7: Consumer segment
Consumer segment Deliveries (‘000) Net revenue adj. (NOKm) 250 907 913 1 000 841 821 900 • Tusener 763 Decrease in number of deliveries 200 800 700 mainly due to price driven churn, 150 600 in line with expectations. 276 500 685 684 678 674 667 100 211 400 153 175 159 300 • Volume sold increased 7%
Slide 8: Business segment
Business segment Deliveries (‘000) Net revenue adj. (NOKm) 140 200 560 570 568 557 549 600 120 500 • Volume sold increased 15% YoY, 150 100 400 driven ~50/50 by customer growth 80 and increased consumption per 100 300 60 120 128 127 127 127 169 176 161 200 delivery. 40 50 115 20 96 100 • Volume sold
Slide 9: Nordic segment
Nordic segment Deliveries (‘000) Net revenue adj. (NOKm) 70 250 160 • Volume and number of deliveries Tusener 206 140 60 177 164 200 have stabilised after the phase-out 120 50 145 100 128 150 of the majority of legacy fixed price 40 80 contracts with price and volume 149 30 59 60 100 60 134 131 128
Slide 10: New Growth Initiatives
New Growth Initiatives Volume sold Alliance (TWh) Net revenue adj. (NOKm) • Net revenue adj. and EBIT adj. growth driven by reduced COGS 2 5 70 157 180 4,3 in Mobile. Tusener 4,1 3,9 147 160 3,7 60 3,6 4 140• 116 119 118 Alliance volumes decrease YoY 50 1 120 3 40 100 due to a temporary decrease in
Slide 11: NWC and net cash position
NWC and net cash position Net working capital (NOKm)1 Net cash (NOKm)1 600,0 500,0 ( 569) «Cash EBIT adj.» in the 400,0 ( 864) quarter: NOK 176m (15) (28) 300,0 (16) 533 (1) 219 200,0 100,0 136 119 - -17 -100,0 Net cash Change in EBITDA adj. CAPEX ex. Payments to Net interest Non-cash Net cash Q4 20
Slide 12: Cost performance in line with target
Cost performance in line with target Group OPEX adj. (NOKm) YOY reduction of 27m. 400 Annualised effect of ~100m. • OPEX adj. in the quarter reduced by NOK 27m YoY, 350 corresponding to an annualised run-rate reduction in 300 line with the target of NOK 100m. • Net FTE reduction of 10% completed. 25
Slide 13: Significant reduction in sales commission spending, strengthening cash flow from operations
Significant reduction in sales commission spending, strengthening cash flow from operations Payments to obtain a contract (NOKm) -47% • Brand strength and lower churn have facilitated significant spending reduction compared to 2021 and 2022. • Contributes to strengthen operating FCF. 264 238 • Amort
Slide 14: Outlook
Outlook ROLF BARMEN (CEO) —= Elmera Group
Slide 15: Key development initiatives
Key development initiatives Customer growth and improve profitability in the Nordic segment Increase penetration in the • Customer satisfaction significantly Business and Nordic segments improved. • Turnaround progressing according to plan. Revenue growth • Launch of app to the Swedish market Revise
Slide 16: Key development initiatives
Key development initiatives Strengthen value proposition and Increase penetration in the increase transparency Business and Nordic segments Revenue growth • Reduction of invoice fee effective from 1 March ’24 – customer-friendly with minor Revise product strategy in impact on revenue. the Consumer s
Slide 17: Key development initiatives
Key development initiatives Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Continuous focus on cost efficiency Improve cost efficiency • Targeting stable nominal cost level, in line Cost with 2023, for the next two years. effic
Slide 18: Key development initiatives
Key development initiatives Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Opportunistic approach to M&A Pursue accretive acquisitions • Pursue high-quality assets if the pricing is attra
Slide 19: Key development initiatives
Key development initiatives Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Pursue accretive acquisitions Growth from new business and asset development • Mobile positioned for growth. Str
Slide 20: A leading player in the Nordic electricity market
A leading player in the Nordic electricity market Elmera Group provides consumers, businesses and the wholesale market with electricity, billing & rating services and electricity related technology solutions. Quarterly presentation | Q4 2023 20
Slide 21: Q&A
Q&A UPCOMING EVENTS: • Q1 ’24 WEBCAST ON 8TH OF MAY • CAPITAL MARKETS DAY IN JUNE
Slide 22: Appendix
Appendix
Slide 23: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation * * * *Items related to customers in the Nordic segment that have breached their agreement with Nordic Green Energy, where Nordic Green Energy is entitled to a termination fee (net effect of NOK 3.8m in Q4 2023): • Other one-off items: Recognition of revenue related to t
Slide 24: Profit and Loss account
Profit and Loss account Quarterly presentation | Q4 2023 24
Slide 25: Balance sheet
Balance sheet Quarterly presentation | Q4 2023 25
Slide 26: Balance sheet
Balance sheet Quarterly presentation | Q4 2023 26
Slide 27: Cash flow
Cash flow Quarterly presentation | Q4 2023 27
Slide 28: Cash flow
Cash flow Quarterly presentation | Q4 2023 28
Slide 29: Rolf Barmen (CEO), Henning Nordgulen (CFO)
• Rolf Barmen (CEO) • Henning Nordgulen (CFO)
Slide 30: 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 Elmera Group’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other