Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q3 2023 Earnings Presentation
31 slides from Elmera Group Asa's earnings presentation, 2023
Slide 1: Quarterly presentation Q3 2023
Quarterly presentation Q3 2023 ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)
Slide 2: Highlights Q3 2023
Highlights Q3 2023 ROLF BARMEN (CEO)
Slide 3: Consumer Business and New Growth Initiatives Nordic highlights
CONSUMER BUSINESS Volume growth YoY Volume growth YoY Price increase during the quarter, with effects into Q4 Mitigated negative macro-effects and delivers growth on Improved brand reputation and increased rating on app core business N E W G R O W T H I N I T I AT I V E S NORDIC Strong quarter with
Slide 4: Market development
Market development Weekly elspot prices (NOK/kWh)1 Monthly supplier changes in Norway (‘000)2 120 4,0 3,5 100 3,0 80 2,5 2,0 60 1,5 40 1,0 0,5 20 0,0 - 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 2 3 4 5 6 7 8 9 10 11 12 2022 2023 2023 2022 2021 2020 Sources: 1) Weekly system prices in NOK
Slide 5: Improved brand position for the Group's largest brand
Improved Improvedbrand brandposition position for the Group’s largest brand “Fjordkraft stands out as the most attractive alternative for customers considering a new supplier.” Results from Kantar 2nd tertial report – market survey consumer market in Norway. “Fjordkraft maintains the number one posi
Slide 6: Financial review Q3 2023
Financial review Q3 2023 HENNING NORDGULEN (CFO)
Slide 7: Key financials Q3 2023
Key financials Q3 2023 Net revenue adj. NOK 350m (NOK 424m) and EBIT adj. NOK 53m (NOK 121m), driven by product mix changes in the Consumer segment. Strong revenue growth in New Growth Initiatives, partly driven by migration specific revenue in the Mobile segment. Opex adj. NOK 297m in Q3 (NOK 303m)
Slide 8: Consumer segment
Consumer segment Deliveries (‘000) Net revenue adj. (NOKm) 250 1 080 1 200 Tusener 200 907 913 841 1 000 • Number of deliveries fairly stable 763 800 QoQ, despite price increase 150 276 notifications. 237 600 685 684 664 678 674 100 175 • Volume sold increased 12% YoY, 153 159 400 50 driven by a 9%
Slide 9: Business segment
Business segment Deliveries (‘000) Net revenue adj. (NOKm) 140 560 570 568 557 200 534 600 120 180 • Volume sold increased 7% YoY, 160 500 100 driven by a 9% increase in number 140 400 80 120 of deliveries. 128 100 300 60 117 120 127 127 80 169 176 • Volume sold LTM increased 4% 40 60 200 YoY. 107 1
Slide 10: Nordic segment
Nordic segment Deliveries (‘000) Net revenue adj. (NOKm) 180 80 177 164 180• Deliveries and volume sold Tusener 160 70 145 160 140 128 decreased as intended through 60 140 120 120 the phase-out of legacy fixed price 50 100 100 contracts with profile and volume 40 66 80 162 149 80 risk. 60 134 131 12
Slide 11: New Growth Initiatives
New Growth Initiatives Volume sold Alliance (TWh) Net revenue adj. (NOKm) • Volume decrease YoY driven by a reduction in number of Alliance 2 4,4 5 70 147 160 Partners. 4,3 Tusener 4,1 3,9 3,7 60 140 4 110 116 119 118 • Two new Alliance partners 50 120 1 3 100 implemented in the quarter, with 40 eff
Slide 12: NWC and net cash position
NWC and net cash position Net working capital (NOKm)1 Net cash (NOKm)1 600 ( 864) 500 «Cash EBIT adj.» in the 400 quarter: NOK 76m (1 335) (9) (34) 300 119 (24) (14) 551 491 200 432 100 119 - Q3 2022 Q2 2023 Q3 2023 Net cash Change in EBITDA adj. CAPEX ex. Payments to Net interest Non-cash Net cash
Slide 13: Significant reduction in sales commission spending, strengthening cash flow from operations
Significant reduction in sales commission spending, strengthening cash flow from operations Payments to obtain a contract (NOKm) -43% • Brand strength and lower churn have facilitated significant spending reduction compared to 2021 and 2022. • Contributes to strengthen operating FCF. 264 238 • Amort
Slide 14: Outlook
Outlook ROLF BARMEN (CEO) —= Elmera Group
Slide 15: Market update
Market update System price (EUR/MWh)1 Norges Bank’s policy rate (%)2 160 5,0 140 4,0 120 100 3,0 80 60 2,0 40 1,0 20 0 0,0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Policy rate Policy rate MPR 3/23 System Price System price forecast Increased liquidity in financ
Slide 16: Key development initiatives
Key development initiatives - Still focus on execution Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Pursue accretive acquisitions Strengthen contribution from the NGI segment New busine
Slide 17: Key development initiatives
Key development initiatives - Still focus on execution Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Pursue accretive acquisitions Strengthen contribution from the NGI segment New busine
Slide 18: Key development initiatives
Key development initiatives - Still focus on execution Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Pursue accretive acquisitions Strengthen contribution from the NGI segment New busine
Slide 19: Key development initiatives
Key development initiatives - Still focus on execution Increase penetration in the Business and Nordic segments Revenue growth Revise product strategy in the Consumer segment Improve cost efficiency Cost efficiency Pursue accretive acquisitions Strengthen contribution from the NGI segment New busine
Slide 20: A leading player in the Nordic electricity market
A leading player in the Nordic electricity market Elmera Group provides consumers, businesses and the wholesale market with electricity, billing & rating services and electricity related technology solutions. Quarterly presentation | Q3 2023 20
Slide 21: Q&A
Q&A ElmeraGroup
Slide 22: Appendix
Appendix
Slide 23: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation Quarterly presentation | Q3 2023 23
Slide 24: Profit and Loss account
Profit and Loss account Quarterly presentation | Q3 2023 24
Slide 25: Balance sheet
Balance sheet Quarterly presentation | Q3 2023 25
Slide 26: Balance sheet
Balance sheet Quarterly presentation | Q3 2023 26
Slide 27: Cash flow
Cash flow Quarterly presentation | Q3 2023 27
Slide 28: Cash flow
Cash flow Quarterly presentation | Q3 2023 28
Slide 29: Operational FCF excl. NWC
Operational FCF excl. NWC NOK in thousands Q3 2023 Q3 2022 Last twelve months EBITDA adj. 119 349 185 551 653 003 CAPEX excl. M&A (8 778) (8 689) (50 913) Payments to obtain a contract (33 924) (67 367) (173 421) "Cash EBIT adj." 76 646 109 495 428 670 Net interest paid (23 655) (28 752) (158 008) "
Slide 30: 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 Elmera Group’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other
Slide 31: Rolf Barmen (CEO), Henning Nordgulen (CFO)
• Rolf Barmen (CEO) • Henning Nordgulen (CFO)