Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Fjordkraft — Q3 2018 Earnings Presentation
29 slides from Elmera Group Asa's earnings presentation, Nov 7, 2018
Slide 1: Q3 2018 Presentation
Q3 2018 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) Oslo, 7th November
Slide 2: Q3 2018 Highlights
Q3 2018 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights third quarter 2018
Highlights third quarter 2018 Another solid quarter Key Highlights 2 • Adjusted net revenue was NOK 227.2m, +23% YoY # of deliveries (end of period) Net change in # of deliveries • Adjusted EBIT increased +34% YoY and was NOK 58.3m 596 286 659 • +14% YoY growth in deliveries, of which 2% organic Inc
Slide 4: “We need more companies like Fjordkraft”
“We need more companies like Fjordkraft” – The United Nations Climate Change secretariat Winner of United Nations “Momentum for Change” Climate Action Award • The scalability and reach of the Klimanjaro initiative awarded Fjordkraft the United Nations “Momentum for Change” Climate action award of 20
Slide 5: Maintaining the position as the no. 1 electricity retail brand in the consumer segment
Maintaining the position as the no. 1 electricity retail brand in the consumer segment in Norway Brand awareness1 95% 93% 86% 67% 61% 60% 43% 29% 27% 26% Fjordkraft Hafslund NorgesEnergi Eidsiva Lyse Gudbrandsdal Fortum Ustekveikja TrøndelagKraft NTE Energi Customer satisfaction1,2 Market share1,3 7
Slide 6: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 7: Market development
Market development Key highlights in Q3 2018 Weekly elspot prices (NOK/kWh)3 • The volatility continues – significant drop in prices 0,6 in last half of September 0,5 - Q3 2018 elspot prices 81% higher than in Q3 20171 0,4 • Fjordkraft has no exposure to the Nasdaq Clearing 0,3 loss following the Ei
Slide 8: Segment development - Consumer
Segment development - Consumer Key highlights in Q3 2018 # of electricity deliveries1 (‘000) • Flat organic development quarter over quarter 600 - Net additions in Q3 2018 were -23, all of which organic 500 400 • The deliveries from the Oppdal and Etne acquisitions will be included in Q4 2018 300 51
Slide 9: Segment development - Business
Segment development - Business Key highlights in Q3 2018 # of electricity deliveries1 (‘000) • Continued organic growth 90 - Net additions in Q3 2018 were 682, all of which organic 80 70 60 • Volume growth of 7% YoY driven by growth in # of 50 deliveries. 40 75,8 76,4 30 60,9 62,8 63,7 - Avg. volume
Slide 10: New Growth Initiatives
New Growth Initiatives Key highlights in Q3 2018 # of Mobile subscribers1 (‘000) • The organic growth in mobile subscribers continues 70 - +4,282 subscribers in Q3 2018 60 • Milestone: First quarter with positive net revenue from Mobile 50 • Launch of new mobile app in July, giving customers a 40 co
Slide 11: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 12: Continued growth in adj. net revenue
Continued growth in adj. net revenue Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) +18% 300 +23% 1 000 250 800 12 4 200 26 600 1 005 1 048 150 924 968 891 400 227 100 185 200 50 0 0 Q3 17 Consumer Business NGI Q3 18 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 • Adjusted net revenue increased +23%
Slide 13: Strong adj. EBIT performance
Strong adj. EBIT performance Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) +4% 70 +34% 400 45% 60 4 350 40% 41% 35% 50 3 8 300 38% 37% 36% 36% 30% 40 250 25% 200 379 30 58 364 356 361 364 20% 150 20 43 15% Adj. EBIT Adj. EBIT 100 10% 10 margin: 23% margin: 26% 50 5% 0 0 0% Q3 17 Consumer Business
Slide 14: Adj. net revenue and adj. EBIT by segment – quarterly
Adj. net revenue and adj. EBIT by segment – quarterly Consumer segment Business segment New Growth Initiatives Adj. net revenue (NOKm) Adj. net revenue (NOKm) Adj. net revenue (NOKm) 250 +20% 250 250 200 200 200 150 150 150 +23% 223 +145% 100 185 100 100 174 156 50 130 50 50 52 70 82 62 65 2,7 9,0 9
Slide 15: Net working capital reduced from last quarter due to seasonality
Net working capital reduced from last quarter due to seasonality Net working capital1 (NOKm) • Net working capital (NWC) reduced by 57 NOKm from 1 200 last quarter, as volume is seasonally lower. Volume effect partly offset by 30% higher elspot prices in Q3 2018 vs Q2 2018 1 000 • NWC is increasing
Slide 16: Improved net cash position
Improved net cash position Change in net debt Q-o-Q (NOKm) - (20) (43) (40) OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 57m (60) (133) (57) (80) (100) (120) (140) 9 (90) 14 (160) 26 (180) 7 (200) Net debt Change in NWC EBITDA adj. CAPEX ex. M&A Payments to Proceeds from Other 2 Net d
Slide 17: Outlook
OUTLOOK Rolf Barmen (CEO) Fjordkraft Mer for pengene
Slide 18: Outlook
Outlook Market development: • Elspot prices are expected on a higher level than 2017 for the rest of the year1 • Elhub market freeze from 1 September 2018 to 1 May 2019 - New Extended Alliance partners will not be implemented until after the freeze period Margin outlook: • Maintaining 2018 targets f
Slide 19: Fjordkraft – Mer for pengene
Fjordkraft Mer for pengene
Slide 20: Appendix
Appendix Ce © Fjordkraft
Slide 21: Product mix
Product mix Consumer segment1 Business segment1 1% 45% 49% 51% 50% 4% Spot Variable Spot incl. financial element Spot Variable Spot incl. financial element Sources: Company information 1) Based on number of deliveries at the end of Q3 2018 | Quarterly Presentation | Q3 2018 21
Slide 22: Profit and loss account
PROFIT AND LOSS ACCOUNT Summary reported financials NOK million Q3 2018 Q3 2017 ∆ YoY Operating income 1 328,5 764,5 564,0 Cost of sales -1 101,3 -579,7 -521,7 Net revenues 227,2 184,9 42,3 Personnel expenses -58,5 -46,2 -12,3 Other operating expenses -85,7 -68,4 -17,4 Operating expenses -144,2 -114
Slide 23: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation NOK in thousands Q3 2018 Q3 2017 YTD 2018 Adjusted operating profit (before unallocated and estimate deviations) 58 282 43 443 283 037 Adjustment: (Positive)/negative estimate deviations previous year 1) - - 2 592 Other gains & losses 2) -4 847 510 -7 896 Non-recurring 3
Slide 24: EBIT adjustments
EBIT adjustments The following adjustments are made to the reported EBIT, in order to give a better representation of underlying performance: 1) Estimate deviations from previous years: A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Grou
Slide 25: Balance sheet
BALANCE SHEET Summary reported financials NOK million Q3 18 Q3 17 ∆ Intangible assets 186,6 74,9 111,7 PP&E 4,5 3,8 0,7 Goodwill 155,8 - 155,8 Financial assets 18,7 14,1 4,6 Other non-current assets 145,7 128,5 17,2 Total non-current assets 511,3 221,2 290,1 Trade receivables 1 206,4 658,4 548,0 Der
Slide 26: Cash flow
CASH FLOW Summary reported financials NOK million Q3 2018 Q3 2017 ∆ YoY EBITDA 78,1 70,9 7,2 Other non-cash adjustments 4,8 3,2 1,6 Change in fair value of financial instruments 4,8 -0,5 5,4 Changes in working capital, etc. 35,3 297,4 -262,1 Cash from operating activities 123,0 371,0 -248,0 Interest
Slide 27: Depreciation profile of the TrønderEnergi Marked acquisition
Depreciation profile of the TrønderEnergi Marked acquisition NOK in millions 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Annual depreciation 30,8 32,8 20,7 12,0 7,3 4,9 3,4 2,3 1,6 1,1 0,7 0,5 0,3 0,2 0,2 0,1 0,1 0,1 0,0 0,0 0,0 Accumulate
Slide 28: 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 29: 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