Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q2 2023 Earnings Presentation
18 slides from Fortum Oyj's earnings presentation, Aug 4, 2023
Slide 1: Half-year Financial Report January-June 2023
Half-year Financial Report January-June 2023 Fortum Corporation 4 August 2023
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Good performance in Q2 - Fortum is moving forward and renewing
Good performance in Q2 - Fortum is moving forward and renewing • Q2 earnings on par with previous year – the Generation segment’s strong performance boosted by high power prices; Consumer Solutions continued weaker results – very solid financial position, refinancing done • Execution of the new stra
Slide 4: Determined strategy execution continued in Q2
Determined strategy execution continued in Q2 Deliver reliable clean energy Drive decarbonisation in industries Transform and develop Ensuring long term productivity Partnering with strategic customers and Restructuring organisation to fit for and security of supply developing projects to enable gro
Slide 5: Prices consolidated in Q2 2023
Prices consolidated in Q2 2023 The weather supported the Nordic power futures in Q2 . • The decline in gas prices was interrupted by seasonally lower LNG inflows and curbed Norwegian pipeline supply due to prolonged maintenance renewed supply concerns • Comfortable gas storage levels add confidence
Slide 6: Strong performance in Nordic power generation
Strong performance in Nordic power generation H1 / 2023 Key financial indicators for continuing operations Operating profit Comp. OP Comp. EPS OCF Leverage improved due to higher achieved power price in the Generation segment Cash flow increased mainly due to improved comparable EBITDA Comp. OP Comp
Slide 7: Tiina Tuomela, CFO
Tiina Tuomela CFO @fortum Powering thriving world
Slide 8: Solid earnings in Nordic power generation
Solid earnings in Nordic power generation – Key financials Significant impact of clean power generation MEUR II/2023 II/2022 I-II/2023 I-II/2022 LTM 2022 restated • Comparable operating profit Sales 1,368 1,537 3,632 3,476 7,930 7,774 and EPS improved Comparable EBITDA 344 362 1,125 797 2,353 2,025
Slide 9: Solid quarter, Generation improved
Solid quarter, Generation improved Q2/2023 Comparable operating profit (EUR million) Generation The 8% improvement derived from the higher achieved power prices. Consumer Solutions Earnings halved mainly due to lower electricity sales margins related to customer outflow of certain hedged contracts;
Slide 10: Strong first half of the year
Strong first half of the year H1/2023 Comparable operating profit (EUR million) Generation Higher achieved power price and lower depreciations due to lifetime extension of Loviisa nuclear power plant. Consumer Solutions Lower sales margins, increased costs and lower sales of value- added services. T
Slide 11: Balance sheet – solid financial position
Balance sheet – solid financial position MEUR 30-Jun-23 31-Dec-22 MEUR 30-Jun-23 31-Dec-22 Property, plant and 6,226 7,266 Total equity 7,740 7,737 Equity affected by EUR 1.7 bn equipment and right-of- impairment and EUR 1.7 bn positive use assets change in hedging reserve. Total Derivative financia
Slide 12: Refinancing done – maturity profile well balanced
Refinancing done – maturity Solid credit metrics profile well balanced Financial net debt 'BBB' long-term issuer credit rating, 149 Stable outlook 47 413 'BBB' long-term issuer credit rating, 658 900 Stable outlook 192 745 Fortum’s objective: Maintain solid investment grade rating of at least BBB to
Slide 13: Outlook
Outlook Generation segment Nordic outright Tax guidance for 2023-2024: hedges: Comparable effective income tax rate for For the remainder of 2023: 70% at EUR 49 /MWh Fortum’s continuing operations is estimated to be in the range of 20-23% for 2023, (excluding For 2024: 50% hedged at EUR 46 /MWh Finn
Slide 14: Powering a thriving world
@fortum Powering a thriving world
Slide 15: Appendix
Appendix @fortum Powering a thriving world
Slide 16: Nord Pool spot price declined on lower gas prices and demand
Nord Pool spot price declined on lower gas prices and demand Hydro reservoirs Reservoir content (TWh) 120 120 • Compared to the long-term average, Nordic hydro reservoir levels 100 100 increased from -3 TWh to -2 TWh during Q2. Both inflow and hydro 80 80 generation were close to normal during the q
Slide 17: Generation: High power prices improved the result
Generation: High power prices II/2023 Volumes, TWh improved the result Q2 2023 vs. Q2 2022 I-II/2023 Volumes. TWh • Comparable operating profit increased by 8% and was impacted mainly by higher achieved power price EUR 57.5 (52.3) per MWh. H1 2023 vs. H1 2022 • The 74% improvement of the comparable
Slide 18: Consumer Solutions: Result decreased due to lower sales margins
Consumer Solutions: Result Number of customers (‘000) decreased due to lower sales margins Q2 2023 vs. Q2 2022 • Comparable operating profit halved and was EUR 10 million mainly due to lower electricity sales margins, the impact of which was somewhat offset by higher gas sales margins. Customer outf