Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q3 2019 Earnings Presentation
25 slides from Elmera Group Asa's earnings presentation, Nov 14, 2019
Slide 1: Q3 2019 Presentation
Q3 2019 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 14th November
Slide 2: Q3 2019 Highlights
Q3 2019 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights third quarter 2019
Highlights third quarter 2019 Continued growth in net revenue and EBIT Key Highlights 1 • Net revenue growth across all segments – driven by both margin # of deliveries (end of period) Δ in # of deliveries (QoQ) improvements and volume growth 619 455 11 892 • Strong development with an accelerating
Slide 4: Launch of “Klimahub” – a climate neutrality database for businesses
Launch of “Klimahub” – a climate neutrality database for businesses • A nation-wide database with information about a firm’s climate actions and focus • Includes an easy-to-use solution for businesses to calculate and register their CO2 emissions and climate actions • Fjordkraft offers counselling a
Slide 5: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 6: Market development
Market development Key highlights in Q3 2019 Weekly elspot prices (NOK/kWh)2 • Increase in elspot prices during the first part of the 0,6 quarter, then fairly stable throughout August and 0,5 September 0,4 • Temperatures warmer than normal in the quarter 0,3 in three out of three months, while two o
Slide 7: Segment development - Consumer
Segment development - Consumer Key highlights in Q3 2019 # of electricity deliveries1 (‘000) • Positive development driven by both acquisition and 600 organic growth 500 - Net additions in Q3 2019 were 9,973, of which 2,274 400 organically 300 - Strong underlying organic growth in the quarter with 5
Slide 8: Segment development - Business
Segment development - Business Key highlights in Q3 2019 # of electricity deliveries1 (‘000) • Positive development driven by both acquisition and 80 organic growth - Net additions in Q3 2019 were 1,919, which of 213 60 organically 40 76 76 76 76 78 • Volume decrease 4% YoY driven by decrease in avg
Slide 9: New Growth Initiatives
New Growth Initiatives Key highlights in Q3 2019 # of Mobile subscribers1 (‘000) • Strong development with an accelerating growth in 100 number of mobile subscribers (+51% YoY). Highest 80 quarterly growth since the launch in Q2 2017 - Growth of 11,177 subscribers in Q3 2019 60 92 40 81 • Fjordkraft
Slide 10: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 11: Net revenue improvement across all segments
Net revenue improvement across all segments Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +14% 1 400 300 +17% 2 1 200 250 6 24 1 000 200 800 150 259 600 1 152 1 193 1 226 227 1 048 1 088 100 400 50 200 0 0 Q3 18 Consumer Business NGI Q3 19 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 • Several diff
Slide 12: Continued increase in EBIT adj.
Continued increase in EBIT adj. Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 70 +8% +19% 500 40% 3 2 (1) 60 400 36% 36% 37% 37% 37% 50 30% 40 300 63 20% 30 58 425 446 450 200 379 390 20 10% Adj. EBIT Adj. EBIT 100 10 margin: 26% margin: 24% 0 0 0% Q3 18 Consumer Business NGI Q3 19 Q3 18 Q4 18 Q1
Slide 13: Segment overview
Segment overview Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 300 +15% 300 300 200 200 200 +9% 267 +35% 100 213 191 180 100 100 156 65 83 97 73 70 6,7 9,3 14,3 10,4 9,1 0 0 0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q3 18 Q4 18
Slide 14: Decreasing and negative NWC driven by seasonally lower volume
Decreasing and negative NWC driven by seasonally lower volume, positive effect from el. cert and operational improvements Net working capital1 (NOKm) 1 200 • Net working capital (NWC) is decreasing by 187 NOKm from last quarter, driven by seasonally lower volumes and positive effect from el. certifi
Slide 15: Strong underlying cash generation – cash position positively affected by seasonality
Strong underlying cash generation – cash position positively affected by seasonality Change in net cash Q-o-Q (NOKm) 700 600 (10) (35) 100 (42) 500 400 187 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 55m 300 493 200 292 100 - Net cash 30.06.19 Change in NWC EBITDA adj. CAPEX ex. M&A
Slide 16: Outlook
Outlook Revised net revenue growth targets for Group and Consumer Targeting high-single digit net revenue growth on an organic basis Revised in Q3 2019: Net revenue growth Group Targeting a stable EBIT margin on an organic basis expected to be somewhat higher than targeted for 2019 Ambition to
Slide 17: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 18: Appendix
Appendix — ler for pengene
Slide 19: Profit and loss account
PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q3 2019 Q3 2018 ∆ YoY Gross revenue 1 101.6 1 328.5 -226.9 Cost of sales -842.3 -1 101.3 259.0 Net revenue 259.3 227.2 32.2 Personnel expenses -74.6 -58.5 -16.0 Other operating expenses -84.9 -85.7 0.8 Operating expenses -159.4 -144.2 -
Slide 20: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation NOK in thousands Q2 2019 Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018 Revenue adjusted 1 373 782 1 101 634 1 328 508 5 021 050 4 528 979 6 712 291 Corporate 1) 54 969 - - 54 969 12 879 8 657 Revenue 1 428 751 1 101 634 1 328 508 5 076 019 4 541 858 6 720 948 Direct cost of
Slide 21: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. 2) Special items consists of one-time items as follows: NOK in thousands Q2 2019 Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018 Special items incurred specific to: - the process of listing the company on Oslo Stock Exchange - - (300) - (11 323) (11 323) - acquisition re
Slide 22: Balance sheet
BALANCE SHEET Summary reported financials NOK million Q3 2019 Q3 2018 ∆ Intangible assets 194.1 186.6 7.5 PP&E 55.4 4.5 50.9 Goodwill 166.7 155.8 10.8 Financial assets 23.6 18.7 4.9 Other non-current assets 158.8 145.7 13.1 Total non-current assets 598.6 511.3 87.3 Trade receivables 916.2 1 206.4 (2
Slide 23: Cash flow
CASH FLOW Summary reported financials NOK million Q3 2019 Q3 2018 ∆ YoY EBITDA 91.5 78.1 13.4 Payments to obtain a contract (contract assets) -34.9 -25.7 -9.1 Other non-cash adjustments 6.5 4.8 1.7 Change in fair value of financial instruments 8.4 4.8 3.6 Changes in working capital, etc. 161.8 35.3
Slide 24: 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
Slide 25: 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