Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q4 2022 Earnings Presentation
25 slides from Elmera Group Asa's earnings presentation, 2023
Slide 1: Quarterly presentation Q4 2022
Quarterly presentation Q4 2022 ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)
Slide 2: Highlights Q4 2022
Highlights Q4 2022 • Group net revenue of 372 NOKm and EBIT adj. of 28 NOKm. Volatile elspot prices and customer migration led to losses on variable contracts in the Consumer segment in the quarter • Solid customer growth in the quarter with more than 20,000 new deliveries in the Consumer segment •
Slide 3: Market dynamics Q4 2022 and effects on the Consumer segment
Market dynamics Q4 2022 and effects on the Consumer segment • As from 1 November 2022, variable contracts have had a mandatory 30- Weekly elspot prices (NOK/kWh)1 day notification period for price increases. However, customers have no 4,0 corresponding binding period 3,5 • Significant customer migra
Slide 4: Elmera Group and Telia enter into cooperation on mobile customers
Elmera Group and Telia enter into cooperation on mobile customers • Ensures an attractive mobile offering to Fjordkraft’s customers and improves profitability • Customers will be operated through Telia’s network and Fjordkraft AS will deliver customer service, operations and branding • The transacti
Slide 5: Key figures: deliveries and volume per segment
DELIVERIES AND VOLUME PER SEGMENT Key figures Consumer segment Business segment Nordic segment Deliveries (thousands) 692 663 661 664 685 111 115 117 117 120 171 177 164 162 149 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Volume (TWh) 2,6 2,1 2,3 2,2 2,0
Slide 6: New Growth Initiatives
New Growth Initiatives Soleklart – sale of solar panel solutions in cooperation with Solcellespesialisten • Sales capacity significantly increased to meet demand Alliance: • Alliance volume 1,216 GWh in Q4 2022, a decrease of 12% YoY • Number of Extended Alliance deliveries decrease by 4,647. Mobile
Slide 7: Regulatory update
Regulatory update • Standardisation of general terms and conditions for Spot contracts in the Consumer segment expected in February • Fornybar Norge (previously Energi Norge and Norwea) advocate increased capital requirements and closer monitoring of electricity retailers • DNV’s certification “Tryg
Slide 8: Financial review Q4 2022
Financial review Q4 2022 HENNING NORDGULEN (CFO)
Slide 9: Group net revenue adj. and EBIT adj.
Group net revenue adj. and EBIT adj. Group Net revenue adj. (NOKm) Group EBIT adj. (NOKm) (173) 62 26 6 156 (169) 451 372 310 28 36 7 (2) Q4 21 Consumer Business NGI Nordic Q4 22 Q4 21 Consumer Business NGI Nordic Q4 22 • Group net revenue adj. decrease 18% YoY and EBIT adj. decrease by 82% driven b
Slide 10: 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 • Losses on variable contracts 200 200 driving the net revenue and EBIT 326 adj. decrease 270 247 237 100 100 153 143 166 169 117 107 0 0 Q4 21 Q1 22 Q2 22
Slide 11: 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) 75 100 Nordic: 50 75 • Negative effects from profile costs 25 51 continue to affect the segment. 32 27 18 50 Profile risk tapers off after Q1 0 2023 25 -25 -44 26 28 28
Slide 12: NWC and net cash position
NWC and net cash position Net cash (NOKm) Net working capital (NOKm) (1 397) (1 465) 533 491 «Cash EBIT adj.» in the quarter: NOK 17m (13) - 67 (42) 91 (61) (43) Q4 21 Q3 22 Q4 22 Net cash Change in NWC EBITDA adj. CAPEX ex. Payments to Non-cash NWC Net cash 30.09.22 M&A obtain contract elements and
Slide 13: Outlook
Outlook ROLF BARMEN (CEO) —= Elmera Group
Slide 14: Outlook
Outlook • Nominal guidance targets discontinued, as elspot price volatility, associated market risk and regulatory uncertainty makes this less accurate and relevant • Soft phase-out plan for variable contracts, with corresponding reduction of risk, considered optimal balance between risk and profita
Slide 15: Strategic focus areas and activities
Strategic focus areas and activities Increase penetration in the Nordic and Business Revise product mix and strategy Net segments revenue Reduce complexity, soft phase-out of “variable” products Roll-out proven consumer concept and solutions in SE/FI growth Introduce attractive new products an
Slide 16: Q&A
Q&A ElmeraGroup
Slide 17: Appendix
Appendix a Elmera Group
Slide 18: Reclassification of SEAS interest expense
Reclassification of SEAS interest expense 3,9 12,3 2,6 15,0 15,7 215,3 19,4 2,4 161,0 140,9 140,8 123,0 89,2 101,6 55,1 - 27,1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2021 2021 2021 2022 2022 2022 2022 EBIT adj. before reclassification Reclassification of interest expenses, increasing EBIT adj. The interest ex
Slide 19: Quarterly presentation | Q4 2022
Quarterly presentation | Q4 2022 19
Slide 20: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation Quarterly presentation | Q4 2022 20
Slide 21: Profit and Loss account
Profit and Loss account Quarterly presentation | Q4 2022 21
Slide 22: Balance sheet
Balance sheet Quarterly presentation | Q4 2022 22
Slide 23: Balance sheet
Balance sheet Quarterly presentation | Q4 2022 23
Slide 24: Cash flow
Cash flow Quarterly presentation | Q4 2022 24
Slide 25: Cash flow
Cash flow Quarterly presentation | Q4 2022 25