Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q3 2021 Earnings Presentation
30 slides from Elmera Group Asa's earnings presentation, Nov 11, 2021
Slide 1: Q3 2021 Presentation
Q3 2021 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) 11th November
Slide 2: Q3 2021 Highlights
Q3 2021 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights third quarter 2021
Highlights third quarter 2021 A good quarter in an extraordinary market Key Highlights # of deliveries (end of period) 1 Δ in # of deliveries (QoQ) • 29% YoY increase in net revenue and 13% YoY increase in EBIT adj. 1 003 700 -198 • The organic growth in the Norwegian market is positive Increase of
Slide 4: Regulatory update
Regulatory update • All Norwegian brands in the Fjordkraft Group are successfully certified in accordance with DNV GL’s “Trygg Strømhandel” (“Safe electricity purchasing”) • Comprehensive process of certification with requirements that go further than the mandatory Norwegian legislation on several m
Slide 5: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 6: Market development
Market development Key highlights in Q3 2021 Weekly elspot prices (NOK/kWh)2 • Extraordinarily high elspot price level, with increasing prices through the quarter representing a challenging market situation • Significant area price differences due to limited transmission capacity • Temperatures cold
Slide 7: Segment development - Consumer
Segment development - Consumer Key highlights in Q3 2021 # of electricity deliveries1 (‘000) • Organic growth of 727 deliveries in Q3 2021 800 • Positive organic development after a couple of 600 challenging quarters 400 761 755 736 726 726 • Volume growth of 21% YoY, driven by 200 increase in deliv
Slide 8: Segment development - Business
Segment development - Business Key highlights in Q3 2021 # of electricity deliveries1 (‘000) • Organic growth of 659 deliveries in Q3 2021 120 • Volume growth of 11% YoY, driven by increase 80 in number of deliveries 104 107 109 111 112 40 − Avg. volume per delivery decreasing 19% YoY 11,008 kWh in
Slide 9: Segment development - Nordic
Segment development - Nordic Key highlights in Q3 2021 # of deliveries1 (‘000) • Decrease of 1,584 deliveries in Q3 2021 200 • The development within the strategic 160 customer segments was positive – the 120 decrease was due to a decrease in tender 80 161 167 166 customers with low profitability 40
Slide 10: New Growth Initiatives
New Growth Initiatives Key highlights in Q3 2021 # of Mobile subscribers1 (‘000) Mobile: • Decrease of 3,495 mobile subscribers in Q3 2021 120 • An MVNO pilot will be started in mid-December 80 • Skymobil customer portfolio migrated to Fjordkraft 122 132 135 134 131 from 1 October 2021 40 • Purchase
Slide 11: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 12: Net revenue development
Net revenue development Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) 600 2 000 +19% +29% 1 600 400 1 200 11 31 10 16 800 1 646 1 728 1 452 1 543 1 572 200 367 336 284 400 0 0 Q3 20 Consumer Business NGI Nordic Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 • Net revenue growth of 29% YoY - imp
Slide 13: EBIT adj. development
EBIT adj. development Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 800 +4% 50% +13% 100 40% 12 600 41% 39% -15 8 37% 37% 35% 5 30% 400 50 89 608 603 613 20% 79 77 588 586 200 Adj. EBIT Adj. EBIT 10% margin: 28% margin: 24% 0 0 0% Q3 20 Consumer Business NGI Nordic Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3
Slide 14: Segment overview
Segment overview Consumer segment Business segment Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +12% 400 300 300 +22% 200 200 309 312 100 205 240 229 100 122 138 97 72 88 0 0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 150 35% 40% 200 65% 80%
Slide 15: Segment overview cont.
Segment overview cont. Nordic segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 400 300 300 200 200 +153% 100 40,5 35,3 100 17,9 31,3 7,5 15,1 19,0 16,1 18,9 0 0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 200 53% 60%
Slide 16: NWC development
NWC development Net working capital1 (NOKm) • Net working capital (NWC) is decreasing to 44 NOKm at 800 quarter-end Q3 2021 • Large intra-quarter fluctuations due to high and increasing elspot prices 192 600 • Fjordkraft has a strong balance sheet and flexible terms for the power purchase payment. T
Slide 17: Net cash development
Net cash development Change in net cash Q-o-Q (NOKm) - ( 100) ( 200) OpFCF1 before tax and change in NWC ( 300) («Cash EBIT adj.»): NOK 59m ( 668) ( 742) ( 400) (14) (72) ( 500) 145 ( 600) (159) 173 ( 700) ( 800) Net cash 30.06.21 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to obtain Non-cash N
Slide 18: Hedging strategy
Hedging strategy • In order to adapt to the demand of more predictable electricity costs, and to increase the predictability of Fjordkraft’s purchase price, Fjordkraft have started to hedge a larger portion of the variable contract portfolio • Fjordkraft utilise hedge accounting on the majority of t
Slide 19: 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 20: Fjordkraft - Mer for pengene
C) Fjordkraft Mer for pengene
Slide 21: Appendix
Appendix 8 @ — ler for pengene
Slide 22: Profit and Loss Account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q3 2021 22
Slide 23: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q3 2021 23
Slide 24: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q3 2021 24
Slide 25: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q3 2021 25
Slide 26: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q3 2021 26
Slide 27: Cash Flow
CASH FLOW | Quarterly Presentation | Q3 2021 27
Slide 28: Cash Flow
CASH FLOW | Quarterly Presentation | Q3 2021 28
Slide 29: 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 30: 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