April 18, Investor Presentation

Transcription

1 April 18, 2018 Investor Presentation

2 Our vision: A leading Norwegian renewable energy group

3 Agder Energi in brief Vertically integrated utility company Fourth largest supplier of hydro power mean production of 8.1 TWh Fourth largest network company customers Leading market share in retail power sales appox. 14 TWh in end user sales Operating revenues approximately NOK 10 bn with employees Government owned 54.5 % by Agder municipalities and 45.5 % by Statkraft Headquarter in Kristiansand, Norway

4 Key credit strengths Strong market position Low cost profile and flexible producer of hydro power Monopoly position through operation of distribution grids in the Agder Counties Strong cash flow High share of price hedging next 3-5 years, robust hedge the following 10 years due to long term power sales contracts Stable and considerable cash flow from monopoly business Investment flexibility Optionality in existing project portfolio Strong and stable ownership structure 30 coordinated municipalities and Statkraft (A-), which is 100 % owned by the Norwegian state (AAA)

5 Core business activites Hydro Power Build and operate hydro power stations Network Build and operate distribution network Energy Management Maximising profit of the hydro power portfolio, business retail sales Market LOS: Private end user sales Otera: Infra structure contractor Varme: District heating and cooling

6 Group structure Board of directors NETWORK Tom Nysted CEO Pernille K. Gulowsen FINANCE AND RISK MANAGEMENT Unni Farestveit CSR AND CORPORATE DEVELOPMENT Svein A. Folgerø NETWORK Jan T. Tønnessen HYDROELECTRIC POWER Steffen Syvertsen ENERGY MANAGEMENT Anders Gaudestad MARKET Frank Håland SHARED SERVICES AE Kraftforvaltning LOS Privat LOS Energy Otera Entelios AE Varme AE Solutions AE Venture Nordgröön

7 Production GWh Hydro power with high flexibility River system Mean production (TWh/year) Reservoir capacity (TWh) Otra Mandal Arendal Sira-Kvina Ulla-Førre Andre Sum

8 Sole network owner in Agder Agder Energi Nett owns and operates the regulated transmission and distribution networks in Aust-Agder and Vest-Agder Stable and considerable cash flow Smart metering (AMS) replacement on track, investment completed within 2019 Network capital NOK mill

9 Strategic goals toward 2020 Results and value creation best in industry 20% improved profitability in existing business Develop business models and positions related to digitalization and new energy markets

10 Focus areas Optimizing existing business activities Positioning to offer scalable hydro power capacity Market operations posisitioning for future energy markets with flexibility and effect Posistioning for future network business Energy solutions to private consumers

11 Investments % 4% Planned investments cirka NOK mill per year on average in the 3 year period, of which NOK 680 mill per year is comitted and government imposed. After 2020 back to reinvestment level 56% Investments include AMS and Honna, which Agder Energi Nett has the option to sell to Statnett Reinvestments in the network is included in the network capital base Hydro Network Other Investment flexibility within the hydro power project portfolio

12 Investments Largest projects Project cost (ca, NOK mill) Completion Network AMS Hydro power Skjerka generator Hydro power Åseral Nord

13 Dividend policy NOK 400 mill plus 60 % of excess profit Based on the Group s net income to majority according to NGAAP previous year The dividend policy is a rule of thumb, qualitative assessment annually

14 Financial update

15 Highlights 2017 Profit from operations NOK mill (NOK mill) in underlying EBITDA Investments NOK mill (NOK mill), of which NOK 99 mill (NOK 142 mill) of investments within network paid by customers Other activities Otera XP was sold in March, NetNordic Holding AS was sold in August. Agder Energi Nett has completed ¾ of replacing the electricity meters with new digital ones (AMS) HMS Low and stable sickness absence of 3,5 %

16 % of normal Reservoir levels NO2 100% 80% 60% 40% 20% 0% yrs average

17 Øre/KWh Power prices NO Forward price 2018 Spot price 2018 Spot price 2017

18 Revenues and EBITDA per segment Revenues (NOK mill) EBITDA (NOK mill) * 2017* Hydro Network Market Energy Mgt * 2017* Hydro Network Market Energy Mgt * Reorganization, Energy Management from 2016

19 Solid cash flow providing financial strength Cash Flow (NOK mill) FFO*/Net Debt 30% % 25,1% 22,4% % 19,4% 18,4% % % % Operational CF Net investments Dividends 0% FFO*/Net Debt *Unadjusted, adjustments are made in rating. Interest bearing debt on 4 quarters rolling basis

20 Robust funding structure and diverse maturity profile Funding sources Maturity profile (NOK mill) 8% 3% % 56% Bonds Green Bonds EUR Loans CP Bonds EUR Loans Green Bonds CP Unutilized credit facilities NOK mill to support short term funding and refinancing risk, overdraft facility NOK mill for operational liquidity and Nasdaq cash requirement

21 Obtained Scope credit rating in Aug-17 Vertically integrated business model with monopolistic power distribution, strong position of hydro power generation in the merit system and leading retail sales business Profitable and environmentally-friendly hydro power production with substantial hedging agreements and sizeable reservoir capacity Long-term, committed majority owners that are jointly organized and show ability and willingness for potential parent support

22 God kraft. Godt klima.

23 Agder Energi: God kraft-godt klima