Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Investor Presentation (May 2010)
17 slides from Fortum Oyj's investor presentation, May 4, 2010
Slide 1: Update on financials
Update on financials Juha Laaksonen CFO 4 May 2010, London
Slide 2: Contents
Contents • Q1 Update • Capital expenditures and financing 2
Slide 3: A strong start for the year
A strong start for the year • Comparable operating profit, EUR 651 (602) million – Higher achieved Nordic sales price in Power – Improvement in Russia – SEK translation effect EUR +33 million • Earnings per share EUR 0.63 (0.46) – Sales gains from Swedegas, Karlskoga Energi & Miljö, Kurgan and Feder
Slide 4: Better performance, except Electricity Sales
Better performance, except Electricity Sales Comparable operating profit EUR million 21 -11 10 2 651 18 602 9 Q1/2009 Power Heat Distribution Electricity Russia Other Q1/2010 Sales 4
Slide 5: Price development in the Nordic region and Russia
Price development in the Nordic region and Russia Spot price for power in NordPool power exchange, Spot price for power (market price), Urals hub, eur/MWh RUB/MWh 59.5 900 60 817 +56% +53% 800 700 693 50 700 603 38.2 36.6 600 535 40 34.0 31.3 500 30 400 20 300 200 10 100 0 0 Q1/2009 Q2/2009 Q3/2009
Slide 6: Key events and highlights
Key events and highlights • Performance development in Russia on track – Russian power reform proceeded as planned – OAO Fortum’s productivity improved – Rules and price parameters for capacity market approved • Suomenoja CHP plant in full operation • Work continuing to improve efficiency, accountab
Slide 7: Income statement
Income statement MEUR I/2010 I/2009 2009 LTM Sales 1 947 1 632 5 435 5 750 Expenses -1 223 -1 033 -3 653 -3 843 Operating profit 724 599 1 782 1 907 Share of profit of associates and jv's 16 -33 21 70 Financial expenses, net -27 -32 -167 -162 Profit before taxes 713 534 1 636 1 815 Income tax expens
Slide 8: Cash flow statement
Cash flow statement MEUR I/2010 I/2009 2009 LTM Operating profit before depreciations 861 721 2 292 2 432 Non-cash flow items and divesting activities -67 1 46 -22 Financial items and fx gains/losses -177 139 146 -170 Taxes -82 -14 -239 -307 Funds from operations (FFO) 535 847 2 245 1 933 Change in
Slide 9: Hedging of Power division's Nordic sales
Hedging of Power division's Nordic sales Status at the end of March 2010 (Status at the end of Dec 2009) Hedge ratio Hedge price rest of 2010 ~ 75% ~ EUR 44 per MWh (~70%) (~ EUR 44 per MWh) 2011 ~ 45% ~ EUR 43 per MWh (~40%) (~ EUR 42 per MWh) Q3/2010 Q4/2010 2011 Current forward quotations at Nord
Slide 10: Capital expenditures, financing
• Q1 Update • Capital expenditures, financing 10
Slide 11: Fortum Group financial targets are relevant for investments
Fortum Group financial targets are relevant for investments Return on capital employed 12% Return on shareholders’ equity 14% Net debt/EBITDA 3.0-3.5 11
Slide 12: Key ratios
Key ratios Key ratios MEUR LTM 2009 2008 in Q1 ‘10 EBITDA 2 432 2 292 2 478 Net cash flow from operations 1 963 2 264 2 002 Interest-bearing net debt 5 679 5 969 6 179 Equity 8 465 8 491 8 411 Balance sheet total 21 318 19 841 20 278 Net debt/EBITDA 2.3 2.6 2.5 Return on capital employed (%) 12.3 12
Slide 13: Capital expenditures, 2010 vs. 2009
Capital expenditures, 2010 vs. 2009 EUR million 1600 • Original plan and guidance: 1400 Capex – EUR 0.8-1.2 billion for the planned for 2009 next 4-5 years 1200 – 2009 and 2010 likely to be Planned for closer to the upper end of 1000 2009, not realised the range 800 • 2009 capex was EUR 862 215 285
Slide 14: Capital expenditures post 2010
Capital expenditures post 2010 • Annual capital expenditures Estimated annual Capex 2011-2013 EUR 0.8-1.2 billion Maintenance ~ EUR 300–500 m • Maintenance/productivity EUR 300–500 million p.a. • Growth in Nordic and Baltic rim countries EUR 200-400 million p.a. Growth ~ EUR 200–400 m • Investments
Slide 15: Debt maturity profile
Debt maturity profile 1250 MEUR 2010 980 1000 2011 645 2012 525 750 2013 560 2014 1.172 2015 322 500 2016 858 2017 220 250 2018 78 2019 799 0 2020+ 1.018 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020+ Bonds Financial institutions Other long-term debt CPs Other short-term debt per 31 March,
Slide 16: Liquidity at the end of Q1/2010
Liquidity at the end of Q1/2010 MEUR Available Outstanding Total amount SHORT TERM FINANCING Commercial Paper Programmes Finnish CP Programme 364 136 500 SEK 5.000 M Swedish CP Programme 241 274 515 604 410 1 015 LIQUID FUNDS AND COMMITTED CREDIT LINES Committed Credit Lines Short Term 214 0 214 Lon
Slide 17: Conclusions
Conclusions • A good start for the year, strong Q1 results • Good hedging positions for 2010 and 2011 • Strong balance sheet and liquidity • Lower capex in 2009, higher in 2010 • Limited refinancing needs 17