Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Q1 2013 Earnings Presentation
27 slides from Fortum Oyj's earnings presentation, Apr 25, 2013
Slide 1: Fortum Corporation Interim Report January – March 2013
Fortum Corporation Interim Report January – March 2013 25 April 2013
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Fortum shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser. 2
Slide 3: Q1 2013 Result
Q1 2013 Result Key figures (EUR) I/2013 I/2012 LTM Sales, million 1,991 1,901 6,249 EBITDA, million 772 897 2,413 Operating profit, million 603 739 1,738 Comparable operating profit, million 650 654 1,748 Profit before taxes, million 559 655 1,490 Earnings per share 0.45 0.56 1.49 Items affecting co
Slide 4: Highlights of the first quarter in 2013
Highlights of the first quarter in 2013 • Good result, considering the challenging business environment ‒ Strong cashflow – Improved working capital • Efficiency programme and the strategic assessment of the Distribution unit proceeding as planned • Higher nuclear production mainly due to good perfo
Slide 5: Market conditions in the first quarter
Market conditions in the first quarter Nordic countries • Power consumption in the Nordic countries slightly higher than in the first quarter of 2012 mainly due to high non-industrial consumption • Nordic water reservoirs below average levels and clearly under last years record levels • Nordic syste
Slide 6: Nordic water reservoirs – below long term reference levels
Nordic water reservoirs – below long term reference levels 120 100 reservoir content (TWh) 80 60 40 20 2000 2003 2010 2011 2012 2013 reference level 0 Q1 Q2 Q3 Q4 Source: Nord Pool Spot
Slide 7: Wholesale price for electricity
Wholesale price for electricity EUR/MWh Nord Pool System Price Forwards 100 90 80 70 60 50 40 30 20 10 22 April 2013 0 2005 2007 2009 2011 2013 2015 2017 Source: Nord Pool Spot, NASDAQ OMX Commodities Europe 7
Slide 8: Price development in the Nordic region and Russia
Price development in the Nordic region and Russia +10% +10% -3% +4% Includes capacity income 8
Slide 9: Q1: Operational result at last years level
Q1: Operational result at last years level Comparable operating profit, EUR million 9
Slide 10: Fuel and CO2 allowance prices
Fuel and CO2 allowance prices Crude oil price (ICE Brent) CO2 price (ICE ECX EUA) 160 35 140 30 120 25 EUR / tCO2 100 USD / bbl 20 80 60 15 40 10 20 5 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 Coal price (ICE Rotterdam) Gas price (ICE NBP) 240 100
Slide 11: Financials
Financials uu Nex ener @Fortum
Slide 12: Comparable and reported operating profit
Comparable and reported operating profit Fortum today, pages 4 operating Comparable -16 Reported operating Comparable operating Reported operating MEUR profit profit profit profit I/2013 I/2012 I/2013 I/2012 2012 2012 European Power and Nordic 303power 342markets, 263 pages 368 18 1,146 - 29 1,175 H
Slide 13: Power
Power Q1 • Comparable operating profit declined • Increased nuclear and thermal volumes offset by lower hydrovolumes and lower achieved power price • Good overall nuclear availability – in Oskarshamn 3 highest since start of commercial operation • Lowest ever LWIF (Lost Workday Injury Frequency) for
Slide 14: Heat
Heat Q1 • Very good comparable operating profit • Higher volumes in Sweden, lower fixed costs and stronger SEK currency • The new CHP plant in Klaipeda started commercial operation • On-going investments proceeding well MEUR I/2013 I/2012 2012 LTM Sales 629 625 1,628 1,632 Comparable operating profi
Slide 15: Russia
Russia Q1 • Decreased comparable operating profit • Lower heat volumes – unusually warm winter • Spot prices under pressure due to good hydrological situation • Nyagan 1 commissioned – timetables for 2 & 3 defined • EUR 500 million in run-rate EBIT for Russia Division in 2015 MEUR I/2013 I/2012 2012
Slide 16: Distribution
Distribution Q1 • Strong comparable profit • Higher volumes and stronger SEK • A strategic assessment of the electricity distribution business started MEUR I/2013 I/2012 2012 LTM Sales 342 308 1,070 1,104 Comparable operating profit 137 110 320 347 Net assets 3,965 3,618 3,889 Comparable RONA % 8.8
Slide 17: Electricity Sales
Electricity Sales Q1 • Increased comparable operating profit • Somewhat higher volumes due to colder weather and increased customer base • Promising customer satisfaction results MEUR I/2013 I/2012 2012 LTM Sales 262 247 722 737 Comparable operating profit 15 9 39 45 Net assets 71 50 51 Comparable R
Slide 18: Income statement
Income statement MEUR I/2013 I/2012 2012 LTM Sales 1,991 1,901 6,159 6,249 Expenses -1,341 -1,247 -4,407 -4,501 Comparable operating profit 650 654 1,752 1,748 Items affecting comparability -47 85 122 -10 Operating profit 603 739 1,874 1,738 Share of profit of associates and jv's 29 -7 23 59 Financi
Slide 19: Cash flow statement
Cash flow statement MEUR I/2013 I/2012 2012 LTM Operating profit before depreciations 772 897 2,538 2,413 Non-cash flow items and divesting activities 27 -101 -192 -64 Financial items and fx gains/losses -216 -142 -522 -596 Taxes -24 -78 -269 -215 Funds from operations (FFO) 559 576 1,555 1,538 Chan
Slide 20: Key ratios
Key ratios MEUR LTM 2012 2011 EBITDA 2,413 2,538 3,008 Comparable EBITDA 2,423 2,416 2,374 Interest-bearing net debt 7,433* 7,814 7,023 Comparable net debt/EBITDA 3.1 3.2 3.0 * 31.3.2013 Return on capital employed (%) 9.1 10.2 14.8 Return on shareholders' equity (%) 13.0 14.6 19.7 Good liquidity – c
Slide 21: Fortum's efficiency programme 2013-2014
Fortum's efficiency programme 2013-2014 • Efficiency programme proceeding according to plan WHEN WHY WHAT 2013-2014 SPEED - Cash flow improved by EUR 1 billion - FLEXIBILITY CAPEX DIVESTMENTS EUR 250-350 million EUR 500 million WORKING CAPITAL FIXED COSTS Reduction Reduce EUR 150 million compared to
Slide 22: Debt Maturity Profile
Debt Maturity Profile 1500 MEUR 2013 1,057 1250 2014 1,291 2015 1,144 1000 2016 873 750 2017 615 2018 578 500 2019 845 2020 76 250 2021 591 2022 998 0 2023+ 1,084 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ TOTAL 9,152 Bonds Financial institutions Other long-term debt CPs Other short-ter
Slide 23: Outlook
Outlook 2 soz | @Fortum
Slide 24: Outlook
Outlook • Nordic markets • Annual electricity demand growth estimated to be on average 0.5% • Electricity continues to gain share of total energy consumption • Russia • Fortum’s goal is to achieve an operating profit level of about EUR 500 million run-rate in its Russia Division during 2015 and to c
Slide 25: CO2 price
CO2 price EUR / tCO2 10 8 6 4 2 22 April 2013 0 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 Source: ICE; (ICE ECX EUA) 25
Slide 26: Outlook
Outlook • Annual capex estimate excluding potential acquisitions – 2013 EUR 1.1 to 1.4 billion – 2014 EUR 0.9 to 1.1 billion • Hedging – Rest of 2013 approximately 80% hedge ratio at approximately EUR 45/MWh (Q4: 70% at EUR 45/MWh) – 2014 approximately 45% hedge ratio at approximately EUR 42/MWh (Q4
Slide 27: SSS
SSS MOREROOERASA