Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — Q4 2022 Earnings Presentation
19 slides from Fortum Oyj's earnings presentation, Mar 2, 2023
Slide 1: Financial statements 2022
Financial statements 2022 Fortum Corporation 2 March 2023
Slide 2: Markus Rauramo, President and CEO
Markus Rauramo President and CEO
Slide 3: Providing secure supplies amid the European energy crisis
Providing secure supplies amid the European energy crisis Russia’s energy war against Europe hit Fortum substantially, resulting in the inevitable divestment of Uniper and the announced exit from Russia In contrast the relevance of Fortum’s operations considerably increased Fortum is contributing
Slide 4: Turbulent year in commodity markets
Turbulent year in commodity Gas and Continental power markets drive Nordic prices • Gas prices plummeted on very high LNG supply, energy savings measures and warm weather – but still substantially above historic average. • Comfortable gas storage levels (~80% by end-2022) eased fears of Europe runni
Slide 5: Well functioning physical power market is base for derivative market
Well functioning physical power Commission starts the market is base for derivative process on EU electricity market market design • Focus is now shifting from short-term Market interventions energy crisis measures to long-term EU Regulation market design development • EU electricity market design •
Slide 6: Clean power generation drives strong financial performance, continuing operations
Clean power generation drives strong financial performance, continuing 2022 operations Prevailing extraordinary Comp. OP1 Comp. EPS1,2 OCF1 Leverage3 market fundamentals and 1,871 1.74 1,429 2 104 <2 strong performance in the 260 1.23 0,53 Generation segment 261 0,27 1 119 0.6 1 611 1 167 1,21 0.4 S
Slide 7: Bernhard Günther
_ o < wy un Bernhard G ie) CF @fortum Poweringa thriving world
Slide 8: Key financials, continuing operations
Key financials, continuing operations MEUR IV/2022 IV/2021 IV/2022 IV/2021 2022 2021 2022 2021 Strong operational restated restated restated restated (excl. (excl. (excl. (excl. performance driven by clean Russia) Russia) Russia) Russia) power generation Sales 2,736 2,171 N/A N/A 8,804 6,422 N/A N/A
Slide 9: Strong operational performance
Strong operational performance FY Reconciliation of comparable operating profit1 (EUR million) Generation FY 2022 Higher achieved power price 477 45 27 261 -1 with strong physical 261 -107 1 871 optimisation but lower hydro 1 611 1 167 volumes City Solutions 2021 Fortum Generation City Consumer Othe
Slide 10: Reported income statement for continuing operations dominated by impairment and capital gains
Reported income statement for continuing operations dominated by impairment and capital gains EUR million FY 2022 Comparable operating profit, continuing operations 1 871 Russia related impairment Impairment charges and reversals -905 charges Divestment of Fortum Oslo Items affecting Capital gains a
Slide 11: Leverage decreasing significantly, gross debt down
Leverage decreasing Solid credit metrics significantly, gross debt down Financial net debt 'BBB' long-term issuer credit rating, 5,335 Negative outlook 2 104 569 'BBB' long-term issuer credit rating, 4 546 1 160 1 013 2 183 Negative outlook 114 498 789 1 084 Fortum’s objective: Financial Uniper impa
Slide 12: Outlook
Outlook Generation segment Nordic hedges: Tax guidance for 2023-2024: For 2023: 75% hedged at EUR 58 per MWh Comparable effective income tax rate for (Q3: 65% at EUR 49) Fortum’s continuing operations is estimated to For 2024: 45% hedged at EUR 42 per MWh be in the range of 21-24% for 2023, (excludi
Slide 13: Appendix
Appendix
Slide 14: Generation: Higher achieved power prices
Generation: Higher achieved Volumes (TWh) Q4'22 Q4'21 power prices 4,8 6,1 6,1 6,3 Q4 2022 vs. Q4 2021 Hydro Nuclear Comparable operating profit solid FY Volumes (TWh) • Total power generation in the Nordic countries decreased due to lower 2022 2021 hydropower volumes caused by lower inflow and lowe
Slide 15: Nord Pool system price driven to new price record
Nord Pool system price driven to new price record Hydro reservoirs Reservoir content (TWh) • Compared to the long-term average, Nordic hydro reservoirs 120 increased from -12 TWh to -5 TWh during Q4. 100 • Inflow realised slightly above normal, while hydro generation 80 was below normal in Q4. 60 •
Slide 16: City Solutions: Structural changes and lower volumes
City Solutions: Structural changes Volumes (TWh) Q4'22 Q4'21 and lower volumes 0,6 0,7 2,2 3,0 Q4 2022 vs. Q4 2021 Power Heat Comparable operating profit decreased by 56% FY Volumes (TWh) • Heat sales volumes decreased by 27% 2022 2021 • Power sales volumes decreased by 14% 1,8 3,3 10,0 7,6 • Compar
Slide 17: Consumer Solutions: Profitability improved
Consumer Solutions: Number of customers (‘000) 2 240 2 230 Profitability improved Q4 2022 vs. Q4 2021 • Comparable operating profit increased by EUR 42 million and amounted to EUR 25 million. In Q4 2021, the result was clearly negative at EUR -17 million due to higher electricity purchase costs and
Slide 18: Balance sheet FY 2022
Balance sheet FY 2022 MEUR 31-Dec-22 30-Sep-22 MEUR 31-Dec-22 30-Sep-22 Property, plant and 7,266 8,252 Total equity 7,737 6,543 IFRS Equity up quarter-on-quarter equipment and right-of- due to hedging effect use assets Derivative financial 1,829 3,845 Derivative financial 4,729 8,658 instruments in
Slide 19: @fortum Powering a thriving world
@fortum Powering a thriving world