Slide 1: Q4 2020 Presentation
Q4 2020 PRESENTATION Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO) 19th February
Slide 2: Q4 2020 Highlights
Q4 2020 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights fourth quarter 2020
Highlights fourth quarter 2020 Growth through M&A Key Highlights 1 • 25% YoY increase in net revenue and 14% YoY growth # of deliveries (end of period) Δ in # of deliveries (QoQ) in EBIT adj. driven by M&A growth 1 026 574 161 029 • # of deliveries passing the 1m milestone with the Increase of 65 %
Slide 4: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 5: Update on Covid-19 and dialogue with the Consumer Authorities (CA)
Update on Covid-19 and dialogue with the Consumer Authorities (CA) • Covid-19 regulations and reduced activity in both Norway and Sweden/Finland continues • Reduced activity following the governments’ measures might have a short-term negative impact on consumption in the Business segment and is also
Slide 6: Market development
Market development Key highlights in Q4 2020 Weekly elspot prices (NOK/kWh)2 • Volatile elspot prices in the quarter • Decreasing and low prices in the first half of the quarter, followed by increasing prices in the second half • All three months in the quarter were warmer than both last year and th
Slide 7: Segment development - Consumer
Segment development - Consumer Key highlights in Q4 2020 # of electricity deliveries1 (‘000) • Organic decrease of 5,982 deliveries in Q4 2020 800 600 • Volume growth of 38% YoY, driven by M&A growth - Avg. volume per delivery is decreasing 1% YoY 400 761 755 3,929 kWh in Q4 2020 vs. 3,976 kWh in Q4
Slide 8: Segment development - Business
Segment development - Business Key highlights in Q4 2020 # of electricity deliveries1 (‘000) • Organic growth of 2,718 deliveries in Q4 2020 120 • Volume growth of 14% YoY driven by M&A growth 80 - Avg. volume per delivery decreasing -16% YoY 19,845 kWh in Q4 2020 vs. 23,636 kWh in Q4 2019. 104 107
Slide 9: New Growth Initiatives & Nordic
New Growth Initiatives & Nordic Key highlights in Q4 2020 # of Mobile subscribers1 (‘000) • Reached the targeted 125k mobile subscribers in the Fjordkraft brand by the end of 2020 120 • In addition: ~7k subscribers in Gudbrandsdal Energi 80 122 132 110 118 100 40 • 7% YoY Alliance volume decrease 0
Slide 10: Financial Review
FINANCIAL REVIEW Ole Johan Langenes (Acting CFO)
Slide 11: Continued net revenue growth
Continued net revenue growth Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +25% 2 000 500 +20% 3 18 26 1 600 400 44 300 1 200 446 464 200 800 1 543 372 1 387 1 427 1 452 1 284 100 400 0 0 Q4 19 Consumer Business NGI Nordic Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 • Net revenue growth acro
Slide 12: EBIT adj. development
EBIT adj. development Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 250 +24% +14% 800 50% 200 40% -2 6 600 39% 39% 40% 41% 150 -6 22 38% 30% 400 100 168 588 608 20% 148 162 547 572 491 50 200 Adj. EBIT Adj. EBIT 10% margin: 40% margin: 36% 0 0 0% Q4 19 Consumer Business NGI Nordic Q4 20 Q4 19 Q1 2
Slide 13: Segment overview
Segment overview Consumer segment Business segment Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +17% 400 +28% 300 300 200 362 200 309 264 230 100 205 100 95 108 75 72 122 0 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 200 52% 60% 200 80% 55%
Slide 14: Segment overview cont.
Segment overview cont. New Growth Initiatives Nordic segment Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 400 300 300 200 +22% 200 100 100 12,4 11,5 9,9 7,5 15,1 17,9 0 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 180 200 40% 32% 130 150 30%
Slide 15: NWC development
NWC development Net working capital1 (NOKm) 400 • Net working capital (NWC) is increasing by 67 NOKm from last quarter 300 154 • Volume increase 133% from last quarter2 200 152 • Elspot prices increase 56%3 from Q3 2020 to Q4 2020 100 218 173 • Reduction of 73 NOKm from last year. Prices decrease 15
Slide 16: Net cash development
Net cash development Change in net cash Q-o-Q (NOKm) 500 400 (16) (50) 300 215 (191) (67) 200 266 100 OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 149m - (100) (502) (344) (200) (300) (400) Net cash 30.09.20 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash NWC Acqui
Slide 17: Full Year 2020
FULL YEAR 2020 Ole Johan Langenes (Acting CFO) 17
Slide 18: Full year Group figures vs financial targets
Full year Group figures vs financial targets Adj. net revenue1 (NOKm) Adj. EBIT1 (NOKm) 2 000 +24% +20% 60% 600 50% 1 600 Target: High-single digit 38% 39% revenue growth on 40% 1 200 an organic basis 400 Target: EBIT margin of 36- 38% 30% Revised in Q2 20 to 608 800 1 543 expecting above 1 284 491
Slide 19: Full year figures per segment vs financial targets for 2020
Full year figures per segment vs financial targets for 2020 Consumer segment Business segment New Growth Initiatives Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) Adj. net revenue1 (NOKm) 1 200 +23% 1 200 1 200 Target2: Target2: 1 000 Mid-single digit net 1 000 Double digit net 1 000 revenue gro
Slide 20: Other relevant financial targets
Other relevant financial targets Targets Status Targeted to be in the area of NOK 65-70m annually on an organic basis over the next three Cap.ex. In line with targets (65 NOKm) years Attractive and increasing dividend Proposed dividend of 3.5 NOK per Dividend share1,2 Target pay-out ratio
Slide 21: Fjordkraft
C) Fjordkraft Mer for pengene
Slide 22: Outlook for 2021-2023
Outlook for 2021-20231 Targeting high-single digit net revenue growth. 2021 expected above double digit due to acquisitions in 2020 Group Targeting a sustainable EBIT margin of 36-38% Ambition to act as a consolidator in a fragmented market Growth Targeting mid-single digit annual net revenu
Slide 23: Appendix
Appendix — ler for pengene
Slide 24: Profit and Loss Account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q4 2020 24
Slide 25: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q3 2020 25
Slide 26: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q3 2020 26
Slide 27: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q4 2020 27
Slide 28: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q4 2020 28
Slide 29: Cash Flow
CASH FLOW | Quarterly Presentation | Q4 2020 29
Slide 30: Cash Flow
CASH FLOW | Quarterly Presentation | Q4 2020 30
Slide 31: 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 32: 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