Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q3 2024 Earnings Presentation
18 slides from Fortum Oyj's earnings presentation, Oct 29, 2024
Slide 1: Interim Report January–September 2024
Interim Report January–September 2024 Fortum Corporation 29 October 2024
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Quarterly highlights Q3 2024
Quarterly highlights Q3 2024 • Resilient performance despite lower prices and volumes Deliver reliable clean Drive decarbonisation – Successful hedging and physical optimisation energy of industries • Long-term PPAs Pjelax wind farm Development of industrial Coal exit sites – Pjelax started Nuclear
Slide 4: Resilient performance amid seasonally lower power prices in the Nordics
Resilient performance amid seasonally lower I-III/2024 power prices in the Nordics Comparable operating profit declined due to lower achieved power Key financial indicators for continuing operations price in the Generation segment Comp. OP Comp. EPS OCF Leverage 0.93 Cash flow 0.82 1,561 2-2.5x 1,18
Slide 5: Price pressure due to precipitation and wind generation
Price pressure due to precipitation Weather - the main driver and wind generation for Nordic Q3 power prices • In Q3 European gas prices increased, while coal EUR / MWh Nordic power prices EUR EUR // tCO tCO2 2 CO CO22 price price (ICE EUA) (ICE EUA) 500 500 125 125 and carbon remained almost unchan
Slide 6: Tiina Tuomela, CFO
Tiina Tuomela CFO @fortum Powering a thriving world
Slide 7: Comparable net profit almost halved in the third quarter
Comparable net profit almost halved in the third quarter Lower power prices reflected in the result (LTM) MEUR III/2024 III/2023 I-III/2024 I-III/2023 2023 LTM Sales 1,094 1,220 4,365 4,853 6,711 6,223 • Comparable operating profit at EUR 1,280 million Comparable EBITDA 254 318 1,202 1,443 1,903 1,6
Slide 8: Income statement
Income statement MEUR, continuing operations III/2024 III/2023 I-III/2024 I-III/2023 2023 LTM Last twelve months Sales 1,094 1,220 4,365 4,853 6,711 6,223 Other Income 5 8 38 22 32 48 Materials and services -611 -665 -2,474 -2,702 -3,808 -3,581 • Fixed costs of EUR ~1 billion Fixed costs -236 -246 -
Slide 9: Results impacted by lower power prices
Results impacted by lower power prices Q3/2024 Generation Lower result mainly due to lower spot and hedge prices, lower hydro volumes Comparable operating profit and somewhat higher costs for co-owned (EUR million) nuclear production. Marginally negative result from Pjelax wind farm. Improved result
Slide 10: Group results negatively affected by lower results in the Generation segment
I-III/2024 Group results negatively affected by Generation lower results in the Generation segment Lower result mainly due to the lower spot and hedge prices, partly offset by higher hydro volumes. EUR 16 million sales gain Comparable operating profit from the Indian renewables’ divestment. (EUR mil
Slide 11: Low leverage and strong liquidity position
Low leverage and strong liquidity Solid credit metrics position Financial net debt 'BBB+' long-term issuer credit rating, Stable outlook 349 4 16 'BBB' long-term issuer credit rating, 140 Stable outlook 851 655 Fortum’s objective: Maintain solid investment grade rating of at least BBB to maintain fi
Slide 12: Outlook
Outlook Generation’s Nordic outright (47 TWh/a): Capital expenditure guidance: Hedges 2024: Capital expenditure, including maintenance • For the rest of 2024: 80% hedged at 44 €/MWh capex of € 300 million, (excluding potential • For 2025: 65% hedged at 42 €/MWh acquisitions) expected to be € ~550 mi
Slide 13: Powering a thriving world
om) @fortum Powering a thriving world
Slide 14: Appendix
@fortum 14 Powering a thriving world
Slide 15: Nordic hydro reservoirs and wholesale power price
Nordic hydro reservoirs and wholesale power price Hydro reservoirs Power price Reservoir content (TWh) EUR/MWh 120 120 500 500 Realised daily system price 100 Futures 21 Oct 2024 100 400 400 80 80 300 300 60 60 200 200 40 40 Norway 100 100 20 20 Sweden 2003 2020 2022 2023 2024 Average Finland 00 00
Slide 16: Achieved power price at 44.1 €/MWh
GENERATION: Power generation volumes, TWh III/2024 III/2023 Achieved power price at 44.1 €/MWh 4.7 5.4 5.8 5.6 0.2 0 Q3/2024 vs. Q3/2023 Hydro Nuclear Wind Comparable operating profit down by 33% to EUR 176 mn, I-III/2024 I-III/2023 mainly due to the lower spot and hedge prices. Lower hydro volumes
Slide 17: Improved and more normalised results
CONSUMER SOLUTIONS: Improved and more normalised Number of customers (‘000) results 2,420 Q3/2024 vs. Q3/2023 2,320 Comparable operating profit decreased by EUR 4 mn to EUR 6 mn, mainly due to lower gas sales margin, the effect of which was partly offset by the reduced scope of the regulated price c
Slide 18: Results improved
OTHER OPERATIONS: Results improved Q3/2024 vs. Q3/2023 Comparable operating profit improved by EUR 22 mn to EUR -24 mn, MEUR III/2024 III/2023 I-III/2024 I-III/2023 2023 LTM mainly due to higher internal charges for services of enabling Sales 165 138 455 401 548 602 functions. The result of the Circ