Arendals Fossekompani Asa · OSL:AFK
Arendals Fossekompani Asa — Q2 2023 Earnings Presentation
23 slides from Arendals Fossekompani Asa's earnings presentation, Aug 18, 2023
Slide 1: Presentation of Q2 and Half-year Interim Report 2023
Presentation of Q2 and Half-year Interim Report 2023 18 August 2023 arendalsfossekompani.no
Slide 2: Disclaimer
This Presentation includes and is based on forward-looking information Disclaimer and statements that are subject to risks and uncertainties that could cause actual results to differ from the projected results. These statements and this Presentation are based on current expectations, estimates and p
Slide 3: Highlights Q2 2023
Highlights Q2 2023 Enerim Oy acquisition Another 32% increase in revenue completed record Total revenues for Arendals Volue made its biggest for Tekna acquisition to date when Fossekompani in the second acquiring Enerim Oy's Energy Building on high revenues quarter amounted to NOK 1,404 Market Servi
Slide 4: Portfolio
Portfolio Digitalization & Electrification Green Energy Property Big Data Analytics & Materials Anything that can be digital, will be Anything that can be electric, will be electric. Based on more than a century of hydropower The Arendal Fossekompani portfolio of digital. By enabling and assisting a
Slide 5: Q2 update - solid growth and margin expansion
Q2 update - solid growth and margin expansion • Operating revenues in the quarter amounted to NOK 375 million (298 million). Adjusted EBITDA in the quarter totaled NOK 63 million (44 million), corresponding to an adjusted EBITDA-margin of 17% (15%). • Recurring revenue constituted 62% of total reven
Slide 6: Enerim acquisition positions Volue to become #1
Enerim acquisition positions Volue to become #1 Acquisition of Enerim Oy’s Energy Market Services division Volue Market Services Volue Trading advisory Enerim Energy Market Services Division Volue now positioned as first mover with proven Volue is ready to capture the vast opportunity of service, un
Slide 7: Q2 update – continued strong results and pipeline
Q2 update – continued strong results and pipeline • Revenues in the quarter were GBP 22.9 million (GBP 23.9 million) AFK ownership Head office and EBIT was GBP 4.6 million (GBP 6.3 million). 80% London, UK • Reduction in revenues and operating profit from Q2 in 2022 was a result of lower airtime rev
Slide 8: Q2 update – ARR growth across the portfolio
Q2 update – ARR growth across the portfolio The annual recurring revenues (ARR) for the portfolio grew to NOK 36 million, which represents a 21% increase compared to the previous quarter and 38% YTD. • Kontali Kontali is experiencing strong demand and customer growth for its new AFK ownership Head o
Slide 9: Q2 update – record revenues and improved margin
Q2 update – record revenues and improved margin • Revenue growth of 45% and adjusted EBITDA improved by CAD 2.6 million compared to Q2 2022. AFK ownership Head office Market cap (30.06) Listed at 71% Sherbrooke, Canada 842 MNOK Oslo Børs • Target for the capacity increase program reached. Increasing
Slide 10: Tekna market outlook
Tekna market outlook Systems – Market rebound Materials – Strong demand R&D & PlasmaSonic wind tunnels Additive Manufacturing CAD 300m Up to +30% Emerging industry for which Tekna has identified Materials sales CAGR 2022-2030 as forecast CAD 300m of PlasmaSonic prospects over the next 10 years. by G
Slide 11: Q2 update – Heat performing well, large Charge contract
Q2 update – Heat performing well, large Charge contract • Revenues increased by 20% year-over-year to EUR 37.1 million in the quarter, primarily driven by a higher activity level within the AFK ownership Head office Heat division. 95% Skien, Norway • EBIT for the quarter was EUR 0.9 million, up from
Slide 12: Q2 update – ramping up to meet growing demand
Q2 update – ramping up to meet growing demand AFK ownership Head office • Revenues for the quarter were EUR 3.2 million, 100% Arendal, Norway driven by increased sales and production capabilities in Commeo. • Operating profit was EUR -2.6 million. Operational ramp-ups in both Commeo and Cellect Ener
Slide 13: Electricity prices reduced from peak levels
Electricity prices reduced from peak levels But will increase towards the end of the year Actual and forecasted EUR/MWh NO2, 2020-2023 Dependent on weather conditions and European power prices -85% Actual 352 Forecast -53% -60% Assuming uniform production, -29% 175 and AFK Vannkraft production 164 o
Slide 14: Strong profitability across the portfolio
Strong profitability across the portfolio Operating profit (MNOK) Q2 2023 Q2 2022 Difference • Solid profitability with EBIT in the mature companies Volue 48 12 +36 Volue, ENRX and NSSLGlobal increasing by NOK 58 million. Tekna with improved profitability. NSSLGlobal 63 74 +11 • Contribution from Hy
Slide 15: 1.1 BNOK in Cash
1.1 BNOK in Cash And more than 2.6 BNOK in available liquidity Total Available Liquidity in AFK Parent 30.06.23 (MNOK) 2 646 498 1 492 1 216 628 1 154 1 062 Cash & Cash Intercompany Bonds Borrowings Net cash 30.06.2023 Undrawn Credit Facility Net available equivalents loans (long and (internal and l
Slide 16: Outlook
Outlook Energy transition, electrification We do not expect significant new Short to medium term focus Capital to be carefully allocated and digitization will continue to drive investments on AFK level in short on realizing full value potential toward accelerating most promising growth in portfolio
Slide 17: Our portfolio spans across the business life cycle
Our portfolio spans across the business life cycle Diversified portfolio ensuring both stable cash flow and attractive growth prospects The Start-ups The Growth-focused The Mature Venture-like, focus on business model Combination, focused on scaling, and business Cash and dividend generating. Focuse
Slide 18: Closing summary
Closing summary Q2 2023 • Strong underlying results with positive outlook • Balance sheet supports both continued cash dividend and fuelling growth • Diversified and well positioned portfolio ensuring both stable cash flow and attractive growth opportunities • Focused business development on-going i
Slide 19: Q&A
Q&A 18 August 2023 19
Slide 20: Solid P&L for the Arendals Fossekompani group
Solid P&L for the Arendals Fossekompani group • Total revenues for the Group amounted to NOK 1,404 million P&L consolidated (MNOK) Q2 2023 Q2 2022 (1,062 million) in the second quarter. Consolidated earnings Revenues 1 404 1 062 before tax came in at NOK 148 million (90 million). Ordinary profit aft
Slide 21: Thank you!
VISITING ADDRESS Langbryggen 9, 4841 Arendal POSTAL ADDRESS Box 280, 4803 Arendal Thank you! +47 37 23 44 00 firmapost@arendalsfoss.no arendalsfossekompani.no © Arendals Fossekompani ASA. All Rights Reserved.
Slide 22: Aspire project positions ENRX well for future growth within heavy e-mobility
Aspire project positions ENRX well for future growth within heavy e-mobility Estimated induction charging market, EUR billion CAGR % ’26-’30 4.5 0.3 108% Truck 3.6 0.2 Heavy E-mobility 2.2 57% Bus +38% CAGR 2.4 1.8 0.1 CAGR % ’21-’30 0.2 9% Rail-powered 1.6 1.0 0.1 0.8 32% AGV 0.6 0.1 1.0 0.6 Light
Slide 23: The Elli case illustrates Ampwell's potential
The Elli case illustrates Ampwell’s potential Electric Vehicles can add flexibility to the future energy system Turnkey solutions for energy storage operations Outlook for electric vehicle fleet to 2040 Economic Transition Scenario Net Zero Scenario Cumulative storage capacity Annual electricity dem
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