Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q1 2021 Earnings Presentation
19 slides from Fortum Oyj's earnings presentation, May 12, 2021
Slide 1: Interim Report January-March 2021
Interim Report January-March 2021 FORTUM CORPORATION 12 May 2021
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO 2 Fortum Interim Report January-March 2021
Slide 3: Q1 Highlights
Q1 Highlights Strong performance • Good performance across all segments securing supply to our customers during the colder winter quarter compared to previous year • Good level of outright volumes while at the same time clearly increased spot Active portfolio optimisation prices and benchmark operat
Slide 4: Strong start for 2021
Strong start for 2021 Comp. OP Comp. EPS OCF Leverage* 831 <2 1.9 1,9 11,171 171 0.91 0,91 0,94 0.94 562 393 Strong headline numbers Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Target LTM First-quarter summary Improved results in all segments • Results supported by improved operational performan
Slide 5: Higher achieved power prices
Higher achieved power prices System spot power price, Nord Pool Fortum Generation's Nordic power price EUR/MWh EUR/MWh 42.1 42,1 37.1 37.2 Substantially higher spot 37,1 35.2 37,2 34.0 34,0 33.6 33,6 35,2 power prices in the Nordics 15.4 15,4 13.8 13,8 Increased achieved power 5.6 5,6 8.9 8,9 prices
Slide 6: All segments improved – significant impact of Uniper profits
All segments improved – significant impact of Uniper profits Comparable operating profit (EUR million) Generation 1,171 higher achieved power price Russia stronger underlying performance City Solutions higher heat sales volumes and improvement in recycling and waste solutions Consumer Solutions high
Slide 7: Executing our strategy – decarbonisation is key
Executing our strategy – decarbonisation is key Accelerated execution on strategic priorities • Coal-exit proceeding ahead of plan with the early closure of another coal- fired plant, Wilhelmshaven, following the early closure of Heyden Transform operations to carbon • Steps forward in first mover h
Slide 8: Fortum fleet broadly taxonomy aligned
Fortum fleet broadly taxonomy aligned Fortum assets Fortum growth CAPEX Hydro Nuclear Wind Waste to Solar (on/offshore) energy Hydrogen CCS Gas Portfolio transformation to further Hazardous increase taxonomy alignment Biomass Coal waste 8 Fortum Interim Report January-March 2021
Slide 9: Bernhard Günther, CFO
Bernhard Günther CFO 9 Fortum Interim Report January-March 2021
Slide 10: Key financials
Key financials MEUR Q1 2021 Q1 2020 2020 LTM Q1 strong financial performance Sales 21,493 1,357 49,015 69,152 Comparable EBITDA 1,479 543 2,434 3,370 Introduction of Comparable Net Profit and Comparable EPS as new Comparable operating profit 1,171 393 1,344 2,122 APM’s Comparable share of profits of
Slide 11: Generation: Higher volumes and prices
Generation: Higher volumes and prices Volumes 6,7 6,4 6,3 Q1'21 Q1'20 6.7 6.4 6.3 6,3 6.3 (TWh) 0.0 0.2 0,2 Q1 2021 vs. Q1 2020 Hydro Nuclear 0,0 Wind • Comparable operating profit up 14% mainly due to higher achieved power prices Comp. Q1 2021 315 – Higher achieved power price +3.2€/MWh, +9% EBITDA
Slide 12: Nordic hydro reservoirs towards normal levels
Nordic hydro reservoirs towards normal levels while spot prices are catching up Reservoir content (TWh) • Cold winter with below normal wind generation and higher 120 Hydro reservoirs availability of export capacity led to strong hydro 100 generation in Q1 80 • This can be seen as increased utilisat
Slide 13: Russia: Solid underlying performance
Russia: Solid underlying performance 8,4 8,4 Volumes 8.4 8.4 7,5 7.5 6,2 Q1'21 6.2 (TWh) Q1'20 Q1 2021 vs. Q1 2020 Power Heat • Comparable operating profit increased by 1% – Russian RUB FX effect of EUR -21 million Q1 2021 134 Comp. – Sale of the 116-MW CSA-backed solar power project to JV contribut
Slide 14: City Solutions: Clearly improved performance
City Solutions: Clearly improved performance 4,4 Volumes 4.4 3,6 3.6 Q1'21 (TWh) 1,3 0,9 Q1'20 Q1 2021 vs. Q1 2020 1.3 Power 0.9 Heat • Comparable operating profit increased close to 50% Q1 2021 132 – Clearly higher heat sales volumes in all heating areas Comp. – Higher Norwegian heat prices EBITDA
Slide 15: Consumer Solutions: Continued improvement
Consumer Solutions: Continued improvement Amount of Q1 2021 22,360 360 Q1 2021 vs. Q1 2020 customers Q4 2020 22,390 390 (´000) • Comparable operating profit continued to improve, +12% – Higher margins from power sales Q1 2021 53 Comp. – Higher prices in the Nordics compared EBITDA Q1 2020 48 – Highe
Slide 16: Uniper: Very strong Q1 results
Uniper: Very strong Q1 results Power Q1'21 generation 12.3 3.3 3.6 10.7 10.7 12.3 volumes 3.3 3.6 Q1 2021 vs. Q1 2020 (TWh) Hydro Nuclear Thermal CE Thermal RU • Consolidation: Q1 2021 868 – Until Q1 2020: Uniper as an associated company Comp. – From Q2 2020: Uniper as a subsidiary EBITDA Q1 2020 •
Slide 17: Improved financial net debt
Improved financial net debt -613 77,023 023 6410 6,410 Solid credit metrics 831 142 37 10 315 'BBB' long-term issuer credit rating, debt netdebt negative outlook Financialnet Target ratio: Financial < 2x Financial net debt/ Comp. EBITDA Fortum’s objective: Maintain solid investment grade rating of a
Slide 18: Outlook
Outlook Hedging 2021 Estimated annual capital Russia Generation Nordic hedges: expenditure, including maintenance CSA changes: For the rest of 2021: 80% hedged at EUR 32 and excluding acquisitions, of Lower bond yield, bond yield 6.3% (7.6%) per MWh For 2022: 55% hedged at EUR 31 per MWh EUR 1,400 m
Slide 19: Q&A
Q&A 19 Fortum Interim Report January-March 2021