Elmera Group Asa · OSL:ELMRA
Elmera Group Asa — Q2 2021 Earnings Presentation
31 slides from Elmera Group Asa's earnings presentation, Aug 26, 2021
Slide 1: Q2 2021 Presentation
Q2 2021 PRESENTATION Rolf Barmen (CEO) Birte Strander (CFO) 26th August
Slide 2: Q2 2021 Highlights
Q2 2021 HIGHLIGHTS Rolf Barmen (CEO)
Slide 3: Highlights second quarter 2021
Highlights second quarter 2021 Growth in net revenue and EBIT adj. Key Highlights # of deliveries (end of period) 1 Δ in # of deliveries (QoQ) • 24% YoY increase in net revenue and 14% YoY increase in EBIT adj. 1 003 898 -1 959 • # of deliveries in the Consumer, Business and Nordic Increase of 61 %
Slide 4: Regulatory update
Regulatory update • In May 2021, The Norwegian Parliament adopted a resolution, requesting that the Norwegian Government implements the following items: 1. Standardised price information, making it easier for consumers to compare prices across different contract types and price models 2. Clear infor
Slide 5: Ongoing activities and initiatives
Ongoing activities and initiatives • A variable contract offering with an attractive price ceiling has been well received by new customers, in a year with volatile and high elspot prices • The physical sales channels are on the way back to pre-covid levels • Ongoing campaign through Power, a Nordic
Slide 6: Business Review
BUSINESS REVIEW Rolf Barmen (CEO)
Slide 7: Market development
Market development Key highlights in Q2 2021 Weekly elspot prices (NOK/kWh)2 • Elspot prices at a significantly higher level than last year, driven by CO2 prices, coal and gas prices and low wind production • 2020 prices were exceptionally low, driven by a very strong hydrologic balance • Temperatur
Slide 8: Segment development - Consumer
Segment development - Consumer Key highlights in Q2 2021 # of electricity deliveries1 (‘000) • Organic decrease of 10,640 deliveries in Q2 800 2021 600 • Positive trend throughout the quarter, with positive growth figures in the second half of 400 761 755 736 726 June. 544 200 • Negative effect from
Slide 9: Segment development - Business
Segment development - Business Key highlights in Q2 2021 # of electricity deliveries1 (‘000) • Organic growth of 2,094 deliveries in Q2 2021 120 • Volume growth of 26% YoY, driven by M&A 80 • Avg. volume per delivery decreasing 9% YoY 104 107 109 111 14,274 kWh in Q2 2021 vs. 15,616 kWh in Q2 2020 4
Slide 10: Segment development - Nordic
Segment development - Nordic Key highlights in Q2 2021 # of deliveries1 (‘000) • Growth of 6,587 deliveries in Q2 2021 200 • Growth within B2C and B2B in both 160 Sweden and Finland 120 80 164 161 167 • Volume sold of 682 GWh, a consumption of 4,155 kWh per delivery 40 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 2
Slide 11: New Growth Initiatives
New Growth Initiatives Key highlights in Q2 2021 # of Mobile subscribers1 (‘000) Mobile: • Decrease of 526 mobile subscribers in Q2 2021 120 • Acquisition of SkyMobil’s customer portfolio 80 • ~38,000 mobile subscribers 118 122 132 135 134 • Final purchase price depending on the number 40 of subscri
Slide 12: Financial Review
FINANCIAL REVIEW Birte Strander (CFO)
Slide 13: Net revenue development
Net revenue development Change in adj. net revenue (NOKm) Adj. net revenue LTM (NOKm) 600 2 000 +15% +24% 1 600 400 35 1 200 22 6 10 800 1 543 1 572 1 646 1 427 1 452 200 388 314 353 400 0 0 Q2 20 Consumer Business NGI Nordic Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 • Net revenue growth of 24% YoY - impr
Slide 14: EBIT adj. development
EBIT adj. development Change in adj. EBIT (NOKm) Adj. EBIT LTM (NOKm) 200 800 +5% 50% +14% 40% 12 600 4 40% 41% 39% -17 17 37% 37% 30% 100 400 129 141 572 588 608 586 603 20% 124 200 Adj. EBIT Adj. EBIT 10% margin: 40% margin: 37% 0 0 0% Q2 20 Consumer Business NGI Nordic Q2 21 Q2 20 Q3 20 Q4 20 Q1
Slide 15: Segment overview
Segment overview Consumer segment Business segment Adj. net revenue (NOKm) Adj. net revenue (NOKm) 400 +4% 400 300 300 +30% 200 200 309 312 100 230 205 240 100 122 138 97 75 72 0 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 150 60% 200 65% 80% 59% 5
Slide 16: 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 +65% 100 40,5 35,3 100 17,9 9,9 7,5 15,1 19,0 16,1 0 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Adj. EBIT (NOKm) Adj. EBIT (NOKm) 200 53% 60% 180 15
Slide 17: NWC development
NWC development Net working capital1 (NOKm) • Net working capital (NWC) is decreasing to 218 NOKm at 800 quarter-end Q2 2021 700 • NWC in Q1 2021 was inflated due to easter at 192 quarter-end 600 500 • NWC increasing by 277 NOKm YoY 400 • Prices increase 647% YoY and volume increase 55% YoY 214 300
Slide 18: Net cash development
Net cash development Change in net cash Q-o-Q (NOKm) - ( 100) OpFCF1 before tax and change in NWC («Cash EBIT adj.»): NOK 117m ( 200) ( 300) (15) (53) 192 ( 742) ( 742) ( 400) ( 802) ( 500) (400) ( 600) 325 ( 700) 18 ( 800) ( 900) Net cash 31.03.21 Change in NWC EBITDA adj. CAPEX ex. M&A Payments to
Slide 19: Hedging strategy
Hedging strategy • Historically, Fjordkraft has not done any hedging of the variable contracts, apart from on certain price ceiling contracts • The increase in elspot price volatility has increased consumers’ demand for predictable electricity cost and risk mitigating products • In order to adapt to
Slide 20: 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 21: Fjordkraft
Fjordkraft Mer for pengene
Slide 22: Appendix
Appendix — ler for pengene
Slide 23: Profit and Loss Account
PROFIT AND LOSS ACCOUNT | Quarterly Presentation | Q2 2021 23
Slide 24: Adjusted EBIT reconciliation
ADJUSTED EBIT reconciliation | Quarterly Presentation | Q1 2021 24
Slide 25: Adjusted EBIT reconciliation cont.
ADJUSTED EBIT reconciliation cont. | Quarterly Presentation | Q1 2021 25
Slide 26: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q2 2021 26
Slide 27: Balance Sheet
BALANCE SHEET | Quarterly Presentation | Q2 2021 27
Slide 28: Cash Flow
CASH FLOW | Quarterly Presentation | Q2 2021 28
Slide 29: Cash Flow
CASH FLOW | Quarterly Presentation | Q2 2021 29
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 Fjordkraft’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other t
Slide 31: For more information
For more information: Fjordkraft’s Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no