Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q4 2020 Earnings Presentation
24 slides from Fortum Oyj's earnings presentation, Mar 12, 2021
Slide 1: Financial Statements 2020
Financial Statements 2020 Fortum Corporation 12 March 2021
Slide 2: Fortum Investor Relations and Financial Communications
Fortum Investor Relations and Financial Communications Ingela Ulfves Rauno Tiihonen Måns Holmberg Carlo Beck Vice President Manager Manager Manager +358 (0)40 515 1531 +358 (0)10 453 6150 +358 (0)44 518 1518 +49 172 751 2480 ingela.ulfves@fortum.com rauno.tiihonen@fortum.com mans.holmberg@fortum.com
Slide 3: Financial Statements 2020
Financial Statements 2020 Fortum Corporation 12 March 2021
Slide 4: Highlights in 2020
Highlights in 2020 Uniper consolidated Group climate Portfolio as subsidiary targets optimisation – – – Identified benefits -50% latest by EUR 1.2 billion EUR 100 million 2030 in European divestments generation Focus on RES and Ongoing strategic Aligned hydrogen reviews Group strategy – – – 550 MW o
Slide 5: Good performance in a challenging year – Strategy updated to drive the clean energy transition
Good performance in a challenging year – Strategy updated to drive the clean energy transition Full year 2020: • Fortum’s achieved power price at EUR 34.8, -2.0 EUR/MWh – Nordic spot power price down by 72% • Comparable EBITDA at EUR 2,434 million, +38% • Comparable operating profit at EUR 1,344 mil
Slide 6: Power demand has recovered close to 2019 level in most areas
6 GW GW 30 35 40 45 50 55 60 65 60 65 40 45 50 55 01/01 01/01 01/16 01/20 01/31 02/15 02/08 03/01 02/27 03/16 03/17 03/31 04/05 04/15 04/30 04/24 05/15 05/13 05/30 06/01 06/14 06/20 06/29 07/09 Nordics 07/14 07/29 07/28 Germany 08/13 08/16 08/28 09/04 09/12 Percentage change in 2020 compared to 2019
Slide 7: Nordic hydro reservoirs heading towards normal levels
Nordic hydro reservoirs heading towards normal levels Reservoir content (TWh) 120 • Wet and mild autumn 2020 kept the Nordic water reservoirs on 100 high levels during Q4. • General weather pattern 80 changed in December towards cold and dry. 60 • Higher power demand and higher availability of expor
Slide 8: Coal and gas on a road to recovery in Q4
Coal and gas on a road to recovery in Q4 USD / t Coal price (ICE API2 2022) 100 • Coal prices benefited from stronger demand in the Northern 80 hemisphere as a result of colder temperatures. 60 • During Q4, API2 year-ahead made impressive gains, averaging 60.5 USD/t and finishing the year at 68.8 US
Slide 9: CO2 price saw new highs and a strong finish to the year
CO2 price saw new highs and a strong finish to the year EUR / tCO2 CO2 price (EUA DEC 2021) 45 • While CO2 price seemed to have lost momentum in October, it 36 recovered swiftly in November-December setting a new daily price record at 33.4 EUR/t at end of December. Strong trend 27 continues in 2021.
Slide 10: Strong hydrology resulted in low Nordic prices in Q4
Strong hydrology resulted in low Nordic prices in Q4 EUR/MWh Nordic spot and forward prices 70 • Nord Pool system spot price was extremely low 60 at 10.9 EUR/MWh (38.9) in 2020 • Sharp decline during H1 2020 was caused by an 50 exceptionally rainy and mild winter. The 40 development was further ampl
Slide 11: Nordic system and area spot prices highly decoupled in Q4 2020
Nordic system and area spot prices highly decoupled in Q4 2020 Key developments: EUR/MWh Nordic system and area prices (FI, SE2, SE3) in Q4 2020 55 • High hydro reservoirs depress system price in Q4 FI 50 SE3 • SE3 and FI area prices supported by low nuclear 45 SE2 availability, transmission limitat
Slide 12: Hedging supported Fortum's achieved power price in the Nordics, Russian achieved price in roubles increased
Hedging supported Fortum’s achieved power price in the Nordics, Russian achieved price in roubles increased Spot price for power in Nord Pool power exchange Spot price for power (market price), Urals hub EUR/MWh RUB/MWh 42 38,6 1 500 35 1 250 1 109 1 081 1 068 1 074 1 021 28 1 000 21 750 -1% 15,4 13
Slide 13: Generation
Generation Q4 2020 2020 • Lower power generation • Lower power generation – Hydro +0.6 TWh – Hydro +2.1 TWh – Nuclear -1.5 TWh – Nuclear -2.5 TWh • Lower achieved power price, -6% • Lower achieved power price, -5% (-2.4 EUR/MWh), fairly high hedge (-2.0 EUR/MWh), fairly high hedge price and hedge le
Slide 14: Russia
Russia Q4 2020 2020 • FX effect of EUR -19 million • FX effect of EUR -34 million • Lower CSA payments • Lower power margins and volumes • Cost efficiency and good availability • Lower CSA payments • Higher heat tariffs • 550 MW of new wind capacity commissioned in joint venture MEUR IV/2020 IV/2019
Slide 15: City Solutions
City Solutions Q4 2020 2020 • Lower result in heating business in • Lower heat sales volumes and Norway power sales prices • Weaker performance in the recycling • Lower Norwegian heat sales prices and waste business • Weaker performance in the • EUR 7 million effect from divestments recycling and wa
Slide 16: Consumer Solutions
Consumer Solutions Q4 2020 2020 • 13th consecutive quarter of comparable • Higher sales margin as a result of EBITDA improvement active development of the service • Competition intense in Norway offering • Strengthened competitiveness and • Customer recommendation & employee several new enterprise c
Slide 17: Uniper
Uniper Q4 2020 2020 • European power prices increased • In Q1, Fortum recorded its share of supported by the increase in CO2 prices. Uniper’s profits (EUR 469 million) as an associated company in Other • The gas business followed the normal Operations seasonal pattern with a strong quarter and high
Slide 18: Key financials
Key financials MEUR IV/ 2020 IV/2019 2020 2019 Sales 21,279 1,553 49,015 5,447 Full year 2020 Comparable EBITDA 1,247 552 2,434 1,766 • Comparable EBITDA +38% • Comparable operating profit +13% Comparable operating profit 928 398 1,344 1,191 • Items affecting comparability EUR 255 million, Operating
Slide 19: 2020 – Three quarters of consolidating Uniper more than offset the impact of weak markets
2020 – Three quarters of consolidating Uniper more than offset the impact of weak markets Comparable operating profit (EUR million) • 0.5 TWh lower volumes • Lower power • 2.0 EUR/MWh margin and volumes • Lower heat sales lower achieved • Higher sales • Uniper • Lower CSAs volumes price margin conso
Slide 20: Q4 2020 – Significant impact of Uniper profits
Q4 2020 – Significant impact of Uniper profits Comparable operating profit (EUR million) • Lower CSAs • Cost efficiency • FX EUR-19 million • 0.9 TWh lower • Lower heat result in volumes Norway • Uniper • 2.4 EUR/MWh • Weaker RWS consolidated lower achieved • Positive one-offs in as a subsidiary pri
Slide 21: Cash flow and change in financial net debt in 2020
Cash flow and change in financial net debt in 2020 +180 7 023 6 843 160 44 1 260 977 2 010 2 902 2 555 4 833 Financial net Acquired Including CF from Investments Divestments Dividends paid Dividends paid FX and other Financial net debt Q4/19 financial debt acquired debt operating paid to minorities
Slide 22: Focus remains on optimising of cash flow and maintaining of financial flexibility
Focus remains on optimising of cash flow and maintaining of financial flexibility • Fortum’s objective is to have a solid investment grade rating of at least BBB to maintain its financial strength, preserve financial flexibility and good access to capital. • Focus is on profitability, optimising of
Slide 23: Outlook
Outlook Hedging 2021 Estimated annual capital Russia Generation Nordic hedges: expenditure, including maintenance CSA changes: For 2021: 75% hedged at EUR 33 per MWh and excluding acquisitions, of Lower bond yield in 2021; 2020 bond (Q3: 75% at EUR 33) yield 7.6% to 6.3% in 2021 For 2022: 50% hedged
Slide 24: bia ee
ks bia ee @fortum Fora cleaner world