Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q4 2019 Earnings Presentation
28 slides from Elmera Group Asa's earnings presentation, Feb 13, 2020
Slide 1: Q4 2019 Presentation
Q4 2019 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) Oslo, 13th February
Slide 2: Q4 2019 Highlights
Q4 2019 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights fourth quarter 2019
Highlights fourth quarter 2019 Favourable market dynamics driving strong profitability growth Key Highlights 1 • Net revenue growth across all segments. Margin improvement is # of deliveries (end of period) Δ in # of deliveries (QoQ) the main driver for the increase 622 092 2 637 • Particularly favo
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Market development
Market development Key highlights in Q4 2019 Weekly elspot prices (NOK/kWh)2 • Increase in elspot prices during the first part of the 0,6 quarter, then decrease in prices through 0,5 November and December 0,4 0,3 • Temperatures colder than normal in two out of 0,2 three months. Two out of three mont
Slide 6: Segment development - Consumer
Segment development - Consumer Key highlights in Q4 2019 # of electricity deliveries1 (‘000) • Continued organic growth 600 - Net additions in Q4 2019 were 2,169, all of which organically 400 • Volume growth of 4% YoY, with increase in # of deliveries being the driver for the growth 529 530 532 542
Slide 7: Segment development - Business
Segment development - Business Key highlights in Q4 2019 # of electricity deliveries1 (‘000) • Positive development in the segment 80 - Net additions in Q4 2019 were 468, all of which organically 60 • Volume decrease 2% YoY driven by decrease in avg. consumption per delivery because of loss of 40 76
Slide 8: New Growth Initiatives
New Growth Initiatives Key highlights in Q4 2019 # of Mobile subscribers1 (‘000) • Strong growth in the number of Mobile subscribers, 120 reaching the 100k subscriber milestone at the end of the quarter 80 - Growth of 7,756 subscribers in Q4 2019 92 100 • Fjordkraft Mobile awarded best call centre i
Slide 9: Financial Review
FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)
Slide 10: Net revenue improvement across all segments
Net revenue improvement across all segments Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +22% 1 600 400 +18% 13 3 52 300 1 200 200 800 372 305 1 184 1 216 1 284 1 088 1 152 100 400 0 0 Q4 18 Consumer Business NGI Q4 19 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 • Adj. net revenue growth driven a
Slide 11: Continued increase in EBIT adj.
Continued increase in EBIT adj. Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 200 +26% +38% 600 50% 150 32 40% 7 1 400 37% 38% 37% 38% 36% 30% 100 148 450 491 20% 200 425 446 390 50 107 Adj. EBIT Adj. EBIT 10% margin: 35% margin: 40% 0 0 0% Q4 18 Consumer Business NGI Q4 19 Q4 18 Q1 19 Q2 19 Q3 19
Slide 12: Segment overview
Segment overview Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 300 +24% 300 300 200 200 200 +15% 267 +33% 264 100 213 191 180 100 100 83 97 73 70 95 9,3 14,3 10,7 9,1 12,4 0 0 0 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1
Slide 13: Negative NWC driven by positive effect from el. cert and operational improvements
Negative NWC driven by positive effect from el. cert and operational improvements Net working capital1 (NOKm) 1 200 • Net working capital (NWC) is increasing by 31 NOKm from last quarter, driven by seasonally higher volumes and elspot prices 1 000 142 • Volume increase 73% from last quarter2 800 151
Slide 14: Strong underlying cash generation
Strong underlying cash generation Change in net cash Q-o-Q (NOKm) 800 700 (13) (29) 600 (59) 190 500 (31) 400 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 148m 300 581 493 200 100 - Net cash 30.09.19 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC Net cash 31.1
Slide 15: Full Year 2019
FULL YEAR 2019 Ole Johan Langenes (Acting CFO) | Quarterly Presentation | Q4 2019 15
Slide 16: Group performance stronger than expected
Group performance stronger than expected Adj. net revenue1 (NOKm) Adj. EBIT1 (NOKm) +18% +26% 600 50% 1 200 38% Target: 36% 40% High-single digit revenue growth on 400 Target: 30% 800 an organic basis Stable EBIT margin 1 284 on an organic basis Revised in Q3 19 to 1 088 be somewhat higher 491 20% t
Slide 17: Adj. net revenue and adj. EBIT by segment – Full Year
Adj. net revenue and adj. EBIT by segment – Full Year Consumer segment Business segment New Growth Initiatives Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) 1 000 +18% 1 000 1 000 Target2: 750 Mid-single digit net 750 750 revenue growth Target2: Around double digit 500 R
Slide 18: Performance vs financial targets
Performance vs financial targets1 Targets Status Group Ambition to act as a consolidator in a fragmented market One acquisition in 2019 Cap.ex. Targeted to be in the area of NOK 50m annually on an organic basis over the next three years In line with targets (50 NOKm) Moderate leverage with
Slide 19: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 20: Outlook for 2020-2022
Outlook for 2020-20221 Targeting high-single digit net revenue growth on an organic basis Group Targeting an EBIT margin of 36-38% Ambition to act as a consolidator in a fragmented market Growth Targeting mid-single digit net revenue growth on an organic basis Consumer EBIT Targeting a sus
Slide 21: Appendix
Appendix — ler for pengene
Slide 22: Profit and loss account
PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q4 2019 Q4 2018 ∆ YoY Gross revenue 2 046.5 2 179.1 -132.6 Cost of sales -1 672.3 -1 871.6 199.3 Net revenue 374.3 307.5 66.8 Personnel expenses -49.2 -64.7 15.4 Other operating expenses -104.7 -103.5 -1.2 Operating expenses -153.9 -168
Slide 23: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation NOK in thousands Q3 2019 Q4 2019 Q4 2018 FY 2019 FY 2018 Revenue adjusted 1 101 634 2 045 382 2 183 312 7 066 432 6 712 291 Corporate 1) - 1 127 (4 222) 56 096 8 657 Revenue 1 101 634 2 046 509 2 179 090 7 122 528 6 720 948 Direct cost of sales adjusted (842 307) (1 673
Slide 24: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. 2) Special items consists of one-time items as follows: NOK in thousands Q3 2019 Q4 2019 Q4 2018 FY 2019 FY 2018 Special items incurred specific to: - the process of listing the company on Oslo Stock Exchange - - - - (11 323) - acquisition related costs and impleme
Slide 25: Balance sheet
BALANCE SHEET Summary reported financials NOK million Q4 2019 Q4 2018 ∆ Intangible assets 178.5 200.0 (21.4) PP&E 73.1 4.1 68.9 Goodwill 166.7 155.8 10.8 Financial assets 25.4 20.1 5.3 Other non-current assets 159.2 149.9 9.3 Total non-current assets 602.9 529.9 73.0 Trade receivables 1 507.5 2 006.
Slide 26: Cash flow
CASH FLOW Summary reported financials NOK million Q4 2019 Q4 2018 ∆ YoY EBITDA 233.5 136.6 96.9 Payments to obtain a contract (contract assets) -29.1 -28.2 -0.9 Other non-cash adjustments -34.5 2.5 -37.1 Change in fair value of financial instruments -13.1 2.7 -15.8 Changes in working capital, etc. -
Slide 27: 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 28: 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