THE TOOLS ARE IN PLACE

Size: px

Start display at page:

Download "THE TOOLS ARE IN PLACE"

Brenda Lewis
5 years ago
Views:

1 THE TOOLS ARE IN PLACE INTERIM REPORT JANUARY-SEPTEMBER 1.

2 WEREL AB INTERIM REPORT JANUARY-SEPTEMBER THE INTERIM PERIOD Net sales amounted to SEK million Operating loss amounted to SEK -3.9 million Net loss amounted to SEK million Cash flow from operations after depreciation was SEK million Cash and cash equivalents amounted to SEK 8. million Number of customers at period end was SIGNIFICANT EVENTS AFTER PERIOD END A new website that provides customers with in-depth information and better service was launched in October Operations in Strängnäs was spun off to the staff on November 1 st THE TOOLS ARE IN PLACE We continue to develop Werel to become Scandinavia's most interesting electricity company. In October, we launched a website with significantly expanded functionality. Here customers can upgrade their electricity contracts and monitor their own consumption and electricity prices in order to consume electricity in a smarter way. In parallel, we launched a mobile app with the same functionality. The website and app are designed to make it easier for ordinary people to become smart and updated electricity consumers. The next step for us is to launch a special offer for homeowners who want to invest in solar power. Our aim with the new offer "Nordic Light" is to turn the relationship between us and our customers upside down. Instead of paying for electricity consumption, we make it possible for ordinary people to invest to get free electricity. We have a few issues left to solve before we are ready to talk about the new offer, but I promise you that it will be exciting. With the new services, we leave the traditional business model of earning money by selling electricity. That model is eventually doomed. We must change our behavior to save the climate and the planet. New technology has now reached a stage where it allows us to make this change. Werel and our customers will stay ahead. The reshaping of our business places new demands on the organization. To meet these demands the customer service and administrative functions have been transferred into a separate company which was spun-out to its employees in November. Their intention is to become an outsourcing company selling their electricity products to us and others, as well as delivering customer service and management under its own brand. Peter Swartling, CEO 2.

3 OPERATIONS SALES AND EARNINGS Sales, during the third quarter increased to SEK million, compared to SEK 49.4 million for the full year 215. Of sales, 11.3 million (81 percent) were generated by the Finnish operations and the remaining SEK 26. million (19 percent) by the Swedish operations. The total number of customers at period end was 37 53, down from 42 at yearend. Operating expenses amounted to SEK million compared to SEK 59.1 million for the full year 215. Costs of purchased electricity accounted for 88 percent of net turnover, compared to 74 percent for the full year 215. A large part of customers in Finland has fixed price subscriptions which were hedged in the first quarter, locking in a margin. The gross margin during the period was 12.1 percent, admittedly substantially lower than last year's 25.9 percent when Werel took advantage of low spot prices on electricity, but more than enough to cover depreciations and leave room for a healthy business. Other external expenses was SEK 27.5 million, compared with SEK 17. million for the full year 215. The cost increase is explained by preparations for future expansion, with investments in i.e. marketing, IT systems and organizational development. Depreciation and amortization of fixed assets amounted to SEK 8.5 million, compared with 1.3 million for the full year 215. Depreciation includes depreciation on goodwill related to the acquisition of the Finnish operations. Operating loss was SEK 25.2 million, compared to SEK 9.7 million for 215. Net loss for the period amounted to SEK 8. million compared to SEK 11. million for the full year. CASH FLOW AND FINANCIAL POSITION Working capital at the end of the quarter amounted to SEK 25.2 million, a decrease from 52.9 million at year-end. Cash and cash equivalents decreased to SEK 8. million from 47.1 million at year-end. Total equity amounted to SEK 25.3 million. The equity ratio decreased to 28.8 percent from 41. percent at year-end. SIGNIFICANT EVENTS AFTER PERIOD END A new website offering customers significantly better functionality was launched in October. An accompanying app was launched parallel to the website. The operations in Strängnäs were spun-out to staff in November. The company intends to become a white label partner to Werel and will initially also help with sales and finance functions. The spin-off is not expected to impact earnings. OWNERS Owner Ownership Afram Gergeo 44% Larmag Group 17% DB8 Opportunity Fund LLC 12% DB7 Opportunity Fund LLC 9% Everything Energy 9% AI Undertakning III Inc 9% Summa 1% ACCOUNTING AND VALUATION PRINCIPLES Operations are conducted through Werel AB and Werel Oy with offices in Strängnäs and Helsinki, respectively. The group's parent is Werel AB company registration number Werel AB reports in accordance with accounting regulations K3. The quarterly report presents consolidated numbers. Cash flow from operations after depreciation was SEK million. 3.

4 FINANCIAL CALENDAR Full-year report 24 Feb 217 AUDITOR S REVIEW This interim report has not been subject to auditor s review. Stockholm on December 8 th, CEO Peter Swartling For further information, please contact: Peter Swartling, telephone ABOUT WEREL WEREL is an Electric Power Company with a lifestyle oriented approach and a community based set-up, aiming to challenge the traditional electricity providers. The business model is adapted to the transforming business environment, capitalizing on innovation. WEREL s customers are offered electricity at wholesale cost and invited to leverage emerging technology to make smart choices. Headquartered in Stockholm, WEREL provides electricity to 4 households in the Nordics. The US Tech & Business Monitoring office in Silicon Valley, California seeks out collaborations and partnerships keeping an eye on the most interesting tech-innovations. The name WEREL is a short for WE ARE ELECTRICITY. 4.

5 PROFIT & LOSS 9 months 31 Dec 215 Operating income, changes in inventories etc Net turnover Other operating income Total operating income, changes in inventories etc Operating expenses Goods for resale Other external expenses Personell costs Depreciation and write-down of tangible and intangible assets Total operating expenses Operating profit/loss Financial items Other interest income and similar profit/loss items Interest expense and similar profit/loss items Total financial items Profit/loss after financial items Profit/loss before tax Net profit/loss for the period

6 BALANCE SHEET ASSETS 3 Sept 31 Dec 215 Fixed assets Intangible assets Goodwill Total intangible assets Tangible assets Equipment, tools, fixtures and fittings Total tangible assets Financial assets Participations in group companies Other financial assets Total financial assets Total fixed assets Current assets Current receivables Trade receivables Receivables from group companies Other receivables Prepaid expenses and accrued income Total current receivables Cash and bank Cash and bank Total cash and bank Total current assets TOTAL ASSETS EQUITY Restricted equity Share capital (11 5 shares) Total restricted equity Non-restricted equity Profit/loss brought forward Shareholders contribution / Capital loans Share premium reserve Exchange difference Profit/loss for the year Total non-restricted equity Total equity LONG-TERM LIABILITIES Other liabilities to credit institutions Other liabilities Total long-term liabilities CURRENT LIABILITIES Other liabilities to credit institutions Trade payables Liabilities to the parent company Other liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES

7 CASH FLOW ANALYSIS Numbers in TSEK 9 months Cash flow from operations Period profit/loss Cash flow from changes in operating capital Decrease(+)/increase(-) of trade receivables Decrease(+)/increase(-) of other receivables Decrease(+)/increase(-) of prepaid expenses Decrease(+)/increase(-)of trade liabilities Decrease(+)/increase(-) of accrued expenses Cash flow from changes in operating capital Cash flow from operations before depreciation Depreciation Cash flow from operations after depreciation Investments Short term debt Long term debt Share issues Dividend paid Total cashflow KEY FIGURES 9 months 6 months 31 Dec 215 Gross margin, % 12.1% 1.4% 25.9% Operating margin, % -23.% -18.7% -19.6% Equity ratio, % 28.8% 36% 41% Number of shares Earnings/loss per share, SEK Number of customers Employees

ANNUAL REPORT 2015 WE EL

ANNUAL REPORT 2015 WE EL 556935-7048 CONTENT SUMMARY OF 2015, 3 CEO S COMMENTS WEREL IN BRIEF 4 OWNERSHIP STRUCTURE, SHARE STRUCTURE, 5 BOARD AND MANAGEMENT DIRECTOR S REPORT 2015 6 WEREL AB, FINANCIAL