Elmera Group Asa · OSL:ELMRA

Elmera Group Asa — Fjordkraft — Q1 2018 Earnings Presentation

26 slides from Elmera Group Asa's earnings presentation, May 8, 2018

  1. Slide 1: Q1 2018 Presentation

    Q1 2018 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 8th May

  2. Slide 2: Q1 2018 Highlights

    Q1 2018 HIGHLIGHTS Rolf Barmen (CEO)

  3. Slide 3: Highlights first quarter 2018

    Highlights first quarter 2018 An important high-volume quarter – a good start to the year Key Highlights • Adjusted net revenue was NOK 314.1m, +16% YoY. # of deliveries (end of period) 1 Net change in # of deliveries - Growth mainly from increased volume sold (+13% YoY). • Increased volume and high

  4. Slide 4: Business Review

    BUSINESS REVIEW Rolf Barmen (CEO)

  5. Slide 5: Fjordkraft at a glance

    Fjordkraft at a glance A leading Norwegian electricity retailer for both consumer and business customers Deregulated:     Transmission system Distribution system Energy production operator (TSO) operators (DSO) Electricity retailers End-customers 3% Typical customer New Growth Initiatives (“NGI”

  6. Slide 6: Market development

    Market development Key highlights in Q1 2018 Monthly elspot prices (NOK/kWh)1 0.45 • Elspot prices have been high and rising 0.40 throughout the quarter. 0.35 - Significantly higher than same period last year, 0.30 especially towards the end of the quarter. 0.25 0.20 - Elspot prices are expected to

  7. Slide 7: Segment development - Consumer

    Segment development - Consumer Key highlights in Q1 2018 # of electricity deliveries2 (‘000) • Continued organic growth in number of electricity 500 deliveries. 400 - Net additions in Q1 2018 were 2,818 300 • Both colder than normal1 weather and growth in 431,4 459,3 461,7 465,7 468,5 200 number of

  8. Slide 8: Segment development - Business

    Segment development - Business Key highlights in Q1 2018 # of electricity deliveries2 (‘000) • Continued organic growth in number of electricity 70 deliveries. 60 - Net additions in Q1 2018 were 904 50 40 • Both colder than normal1 weather and growth in 30 59,6 60,4 60,9 62,8 63,7 number of deliveri

  9. Slide 9: Segment development - New Growth Initiatives

    Segment development - New Growth Initiatives Key highlights in Q1 2018 # of Mobile subscribers2 (‘000) • Rapid growth in number of mobile subscribers. 60 - Mobile subscription base grew +28% in Q1 2018 50 to 49,369 subscribers by the end of the quarter 40 Launch of mobile 30 25.04.17 • The 47% YoY A

  10. Slide 10: Financial Review

    FINANCIAL REVIEW Birte Strander (CFO)

  11. Slide 11: Strong improvement in adj. net revenue YoY

    Strong improvement in adj. net revenue YoY Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +16% +20% 350 1 000 300 17 2 25 800 250 600 200 924 968 150 314 856 891 271 400 808 100 200 50 0 0 Q1 17 Consumer Business NGI Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 • Strong adj. net revenue develo

  12. Slide 12: Consistent adj. EBIT performance

    Consistent adj. EBIT performance Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) +3% +6% 180 400 45% 160 40% 14 (8) 350 42% 140 (2) 42% 41% 300 38% 35% 120 37% 30% 250 100 25% 80 200 146 338 363 362 354 358 20% 141 150 60 15% 40 Adj. EBIT Adj. EBIT 100 10% margin: 52% margin: 46% 50 20 5% 0 0 0% Q1

  13. Slide 13: Adj. net revenue and adj. EBIT by segment – quarterly

    Adj. net revenue and adj. EBIT by segment – quarterly Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 250 +12% 250 250 200 200 200 150 150 +26% 150 223 +29% 100 199 185 100 100 146 130 50 50 82 50 65 54 52 70 7 4 3 9 9

  14. Slide 14: Net working capital highly affected by seasonally high price level and volumes

    Net working capital highly affected by seasonally high price level and volumes Net working capital (NOKm) • Net working capital (NWC) is normally at its 1 200 highest level in Q1 due to seasonally high price level and volume. 1 000 142 • NWC in Q1 2018 were in addition to seasonality impacted by qua

  15. Slide 15: Change in NIBD mainly affected by change in NWC

    Change in NIBD mainly affected by change in NWC Change in net debt Q-o-Q (NOKm) 500 11 400 100 (178) 300 35 6 29 200 690 331 100 - (100) OpFCF1 after tax, before change in NWC: (363) 108m (200) (300) (400) (500) Net debt Change in Dividend Other 2 EBITDA adj. CAPEX ex. Payments to Tax Net debt 31.12

  16. Slide 16: Outlook

    =— s By, OUTLOOK Rolf Barmen '(@=e)) ¢:) Fjordkraft Mer for pengene

  17. Slide 17: Outlook

    Outlook Roadmap to growth 2018-2020 2 million (+0.8 million) people supplied with electricity from Fjordkraft Vision / Target 875k deliveries (+325k) through growing the customer base 33% • Continue leverage market leading brand and distribution capabilities Organic • Product development to expand m

  18. Slide 18: Q&A

    Q&A ¢:) Fjordkraft Mer for pengene

  19. Slide 19: Appendix

    Appendix Se C © Fjordkraft

  20. Slide 20: Closing of TrønderEnergi Marked deal

    Closing of TrønderEnergi Marked deal • Acquisition of TrønderEnergi Marked (“TEM) successfully completed 18 April 2018. • The final purchase price was NOK 280.3m, including interest accrued from year-end 2017 locked box date of NOK 2.0m. • The acquisition is debt financed through a new five-year sec

  21. Slide 21: Profit and Loss Account

    PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q1 2018 Q1 2017 ∆ YoY Operating income 1 916,0 1 385,7 530,3 Cost of sales -1 601,9 -1 121,0 -480,9 Net revenues 314,1 264,6 49,4 Personnel expenses -53,7 -40,9 -12,8 Other operating expenses -93,7 -63,9 -29,8 Operating expenses -147,4

  22. Slide 22: Adjusted EBITDA and EBIT reconciliation

    ADJUSTED EBITDA and EBIT reconciliation NOK million Q1 2018 Q1 2017 ∆ YoY Adj. EBITDA 177,6 165,8 11,8 Depreciation & amortization -32,0 -24,6 -7,3 Adj. EBIT 145,6 141,2 4,5 Estimate deviations previous year - -6,0 6,0 Unallocated and other adjustments -16,0 -0,1 -15,9 Total adjustments -16,0 -6,1 -

  23. Slide 23: Balance Sheet

    BALANCE SHEET Summary reported financials NOK million Q1 18 Q1 17 Q4 17 ∆ YoY Intangible assets 85,2 72,0 82,1 13,1 PP&E 3,5 2,9 3,6 0,7 Financial assets 15,1 14,1 14,2 1,0 Other non-current assets 142,3 114,0 137,5 28,3 Total non-current assets 246,1 203,0 237,4 43,1 Trade receivables 2 287,7 1 312

  24. Slide 24: Cash Flow

    CASH FLOW Summary reported financials NOK million Q1 2018 Q1 2017 ∆ YoY EBITDA 161,6 159,7 1,9 Other non-cash adjustments 5,2 3,2 2,0 Change in fair value of financial instruments 5,1 0,1 4,9 Changes in working capital, etc. -693,8 -106,7 -587,1 Cash from operating activities -522,0 56,3 -578,3 Inte

  25. 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

  26. 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

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