Second-quarter 211 Analytikerpresentasjon presentation to analysts 2. kvartal 21 Hafslund ASA Hafslund 8 July 211 ASA Christian 15. juli Berg, 21CEO Christian Berg, CEO
Highlights second-quarter 211 High cash flow and Q2 211 EBITDA of NOK 78 million (exclusive of REC profit effect). Hydropower sales price: NOK.39 per kwh, up 11 percent from Q2 21. Hydropower production: returns to normal for the quarter. Hydropower reservoir content in south-central Norway improves dramatically: now at normal levels for the season. Network business: stable profit continues. Effect of REC investment s share price development on operating profit: minus NOK 564 million (Q2 21: minus NOK 747 million). New NOK 3.6 billion revolving credit facility strengthens liquidity reserve. s.2
EBITDA second quarter 211 MNOK 7 6 264 37 32 564 5 4 3 38 26 2 42 144 1 Hydropower District Heating Network Power Sales Venture REC Other Activities EBITDA s.3
Stable cash flow from operations EBITDA development 12-month rolling EBITDA vs. wholesale power prices 3 2 5 2 1 5 1 5 MNOK 1 977 2 7 2 13 2 246 2 476 Q2 1 2 655.4 2 842 2 783 NOK/kWh 2 655.3.3.3.3.3 Q2 9 Q3 9.3 Q4 9 Q1 1 +34% Q3 1.4 Q4 1.4 Q1 11.4 Q2 11.5.4.2.1. Cash flow from operations up 34 percent over the past two years: Renewable energy, infrastructure and Power Sales (NOK 412 million) Expansion costs and Bioenergy (NOK -88 million) Other business activities and support (NOK 172 million) One time effects (NOK 16 million) EBITDA sensitivity: a NOK.1 per kwh change in wholesale power prices results in an approximately NOK 34 million change in EBITDA EBITDA* Power prices rolling 12-month average** s.4 * EBITDA = rolling 12-month EBITDA excluding effect from financial investments and interest and currency derivatives (in NOK million). ** Power prices for Hafslund Hydropower rolling 12 month
Development interest-bearing debt and equity ratio Net interest-bearing debt and equity ratio Change in interest-bearing debt in Q2 11 Amounts in NOK million NOK billion 14 13 13 Equity ratio % 6 Net interest-bearing debt 31.3.211-1 139 12 11 1 9 8 7 6 11 33 11 35 35 1 37 1 33 5 4 3 2 EBITDA 144 Interest paid -142 Tax paid -94 Change in market value of financial instruments 569 Change in working capital 899 Investments -256 5 1 Net loan portfolio adjustments 312 4 Payment of dividend -1 461 3 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net interest-bearing debt 3.6.211-1 168 Net interest-bearing debt Equity ratio s.5
Working capital requirements- seasonal variation NOK mill 4 3 2 1 Working capital and power prices NOK/kWh.7.6.5.4.3 Seasonal variation in working capital driven by both volume sold and prevailing power prices. Strong demand for energy in the first and fourth quarters of the year..2 June through September is typically the least working-capital intensive period. -1 jun.9 sep.9 dec.9 mar.1 Working capital jun.1 sep.1 dec.1 Average power prices mar.11.1 jun.11 Working capital decreased a further NOK.9 billion in Q2 211 to NOK.3 billion as of 3 June 211. 6 GWh Power sales - sold volume 4 5 3 1 5 2 62 2 162 4 15 5 1 3 7 2 613 5 246 5 453 3 14 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.6
Hydropower NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue 359 289 536 527 EBITDA 38 24 441 417 Operating profit 296 229 419 396 Sales price (NOK/kWh).39.35.41.39 Production volume (GWh) 923 829 1294 1349 Investments 8 31 32 71 quarter 12 months 4 1 2 996 1 3 827 8 2 6 1 219 33 38 24 252 4 186 178 154 134 2 Profit and operating revenue figures reflect higher power production and power prices than in Q2 21. Production: 11 percent greater than in Q2 21. Nasdaq OMX (NO1) spot price: NOK.41 per kwh (Q2 21: NOK.37 per kwh). New aggregate in continuous operation since start-up in late April 211. Projected third-quarter 211 generation: approximately 94 GWh; anticipated volume is 6 GWh or 7% above normal for the third quarter. Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.7 EBITDA per quarter EBITDA rolling 12-month
Hydropower production profile 35 GWh 3 25 2 15 277 36 286 333 34 335 342 313 314 1 5 221 158 156 113 142 99 21 214 174 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 21 211 Normal s.8 *Normal annual production = 3,1 GWh based on 1-year average of production adjusted for capacity improvements.
District Heating NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue 133 136 643 63 EBITDA 26 32 156 184 Operating profit -5 2 96 125 Gross margin (NOK/kWh).42.39.36.36 Production volume (GWh) 28 234 925 954 Investments 95 64 185 11 Q2 is a seasonally weak quarter; deliveries are typically 16 percent of normal annual production. Lower district heating deliveries due to low market demand during early Q2. Contribution margin per kwh: up 6 percent. New delivery contracts signed in Q2 211: 64 GWh annual energy outtake. quarter 2 25 15 1 5 25-11 58 152 32 6 93 13 12 months 3 254 25 2 15 1 26 5 Investing in renewable energy sources: o 5 MW bio-oil boiler in Q1 212 o 56 MW wood powder-fired boiler scheduled for start-up in 212/213. - 5 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.9 EBITDA per quarter EBITDA rolling 12-month
District Heating energy sources and unit cost Energy prices (NOK/kWh) Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Waste & biofuel.18.19.18.2.2 Heat pumps.15.12.22.21.18 Biooil and biodiesel.77.68.62 Electricity.48.58.61.57.6 Oil/natural gas.43.58.53.55.71 Total production cost.26.25.48.46.3 District Heating incl. Distribution.65.66.75.8.72 Gross contribution margin.39.41.27.34.42 GWh % 8 9 694 716 7 6 8 5 4 7 Q2 has a seasonally low production cost per kwh due to high proportion of less-costly baseload energy inputs. Production costs depend on energy sources used and price differentials. Bio-oil implemented as a peakload energy source in three most recent quarters. Proportion of electricity and renewable energy sources up 4 percentage points to 8 percent in last 12 months. 3 2 1 234 134 27 6 5 Higher wholesale power prices result in increased district heating prices and production costs. Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 s.1 Oil and natural gas Electricity Biooil og biodiesel Heatpumps Waste and biomasse Ratio Electricity and renewable energy sources rolling 12
District Heating production profile 35 GWh 3 25 2 15 1 28 268 25 246 19 23 228 336 5 Jan Feb Mar 116 11 Apr 73 72 May 45 35 Jun 3 37 Jul Aug 67 Sep 13 Oct Nov Dec 21 211 Normal* s.11 * Normal = projected 211 production, given normal temperatures (1-year average) and current and planned customer tie-ins to the grid.
Network NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue 967 1 5 2 285 2 446 EBITDA 264 275 524 549 Operating profit 132 138 263 275 Investments 99 119 161 175 Stable profit for Network business. Excellent supply reliability somewhat higher frequency of thunderstorms raised the number of service interruptions compared with Q2 21. Profit projection for 211 on a par with 21. quarter 35 3 917 25 2 15 247 1 5 243 314 274 275 282 246 26 12 months 1 2 1 52 1 8 6 264 4 2 Sale of Network s central grid infrastructure completed. Advanced Metering System (AMS) implementation regulations adopted: o o 8 percent of all installed meters to be AMS by 1 January 216. All customers electric meters to be replaced by 1 January 217. Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 EBITDA per quarter EBITDA rolling 12-month s.12
Power Sales NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenues 1 528 1 391 4 571 4 12 EBITDA 37 187 158 239 Operating profit 37 185 154 234 Sold volume (GWh) 3 14 3 7 8 467 8 8 quarter 2 15 236 1 187 121 5 86 45 51 52 34 22 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 12 months 5 4 279 3 2 1 37 Q2 11 Revenue figure reflects increased prices for wholesale (spot) power contracts traded via Nasdaq OMX. 855 customers via wholly and partly owned companies. Satisfactory profit performance in a seasonally weak quarter; however, value decline on power derivatives results in NOK 21 million charge to Q2 211 profit. Power Sales had Q2 211 after-tax profit of NOK 3 per customer. Working capital down NOK 1.4 billion in 2Q 211. EBITDA per quarter EBITDA rolling 12-month s.13
Heat and Bioenergy NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue 31 26 77 56 EBITDA (7) 1 (1) Operating profit (9) (15) (8) (18) Energy production (GWh) 62 62 136 128 Sales price (NOK/kWh).26.23.26.24 Used waste (thousand tonns) 31 27 66 54 Investments 19 32 26 97 Heat (energy recovery facilities): EBITDA: NOK 1 million, double the Q2 21 figure. Higher energy prices and increased use of waste-derived fuel. High steam delivery volumes at Borregaard plant. 1-week planned maintenance shutdown at Fredrikstad facility. Bioenergy (wood pellets production): Improvements to rock debris extractors and raw materials mills on schedule. Pilot operation and start-up expected in the third quarter of 211. s.14
Venture NOK million Q2 11 Q2 1 YTD 11 YTD 1 Operating revenue 98 128 212 258 EBITDA 32 43 51 88 Operating profit excl. REC 24 (8) 33 17 REC effect on EBITDA (564) (747) (564) (1 991) Capital employed: Venture portfolio value growth: NOK 25 million in Q2 211. Capital employed, excluding REC: NOK 812 million. REC investment value decline: NOK 93 million, of which NOK 564 million (Q2 21: NOK 747 million) charged to operating profit. Energy efficiency and other investments 7% REC investment: 89. million shares or 8.93 percent of stock market value: NOK.8 billion (at NOK 9.28 per share). Telecom 59% 21% AMS (Advanced metering system) 12% Renewable energi s.15
Group profit and loss account NOK million Q2 11 Q2 1 YTD 11 Operating revenue 3 118 3 26 92 8 324 Gain/loss financial items (527) (723) 196 (534) Cost og energy (1 9) (1 75) (194) (5 921) Gross margin 691 597 94 1 869 Operating expenses (547) (558) 11 (1 69) EBITDA 144 39 15 8 Depreciation (2) (245) 45 (41) Operating profit (56) (26) 15 399 Interest expences (136) (124) (12) (258) Market value change loan portfolio (74) (37) (37) (48) Financial expenses (21) (161) (49) (36) Pre-tax profit (266) (367) 11 93 Tax (15) (179) 29 (28) Profit after tax (416) (546) 13 (188) Earnings per share (EPS) in NOK (2.13) (2.8).67 (.96) s.16
Group balance sheet NOK million 3.6.211 31.3.211 31.12.21 Intangible assets 2 379 2 388 (9) 2 389 Fixed assets 18 342 18 58 (238) 18 557 Financial assets 1 792 2 674 (883) 2 831 Accounts receivables and inventory 2 375 4 311 (1 936) 5 625 Cash and cash equivalents 911 1 456 (544) 211 Assets 25 799 29 48 (3 69) 29 613 Equity (incl. Min. int.) 8 621 1 849 (2 228) 1 464 Allocation for liabilities 3 17 3 13 68 3 46 Long-therm debt 1 52 1 346 174 11 321 Other currently liabilities 1 295 1 93 (69) 2 338 Short-term debt 2 193 3 28 (1 14) 2 444 Equity and liabilities 25 799 29 48 (3 69) 29 613 Net interest-bearing debt 1 168 1 139 29 13 67 Equity ratio 33 % 37 % -4 % 35 % s.17
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Earnings per share (excluding REC) By quarter NOK 5.2 1.34 1.17 1.1.86 1..76.73.22 -.38 29 21 211 1.71 8.12 1.9 s.2
Group cash flow statement NOK million Q2 11 Q2 1 YTD 211 EBITDA excluding REC 144 39 15 8 Interest paid (142) (13) (12) (332) Tax paid (94) (2) (74) (192) Market value changes and other liquidity adjustments 569 787 (218) 591 Change in working capital 899 89 9 1 822 Cash flow from operations 1 376 1 485 (19) 2 689 Investments in operations and expansion (256) (423) 167 (488) Sale of operating assets and business activities 325 5 32 325 Portfolio changes Venture, etc (23) 292 (315) 1 517 Cash flow, investment activities 46 (126) 172 1 354 Cash flow for debt repayment and dividends 1 422 1 359 63 4 43 s.21
Capital employed and return on capital employed Capital employed REC Market 4% 9% 2% Hydropower Return on capital employed (ROCE) excluding REC 11.5% 2.5 % 11.2% 2.5% 3% Venture 6.% Network 4% 5% Heat and Bioenergy 9. % 8.6% 21% District Heating 29 21* 211** s.22 * Return on capital employed (ROCE), of which 9.% is exclusive of the Hafslund Fibernett sales gain and the Biowood Norway write-down. ** Rolling 12-month return on capital employed, of which 8.6% is exclusive of the Hafslund Fibernett sales gain and the Biowood Norway write-down.
Capital structure development NOK billion 14 4. 4. 38.1 37. Equity ratio % 4 12 34.3 33.1 35. 35. 33.4 1 3 8 6 1.7 11.2 11.6 11.9 11.3 11.1 13.1 1.3 1.2 2 4 1 2 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net interest-bearing debt Equity ratio s.23
Loans portfolio data Debt maturity profile NOK million Portfolio data 2 1 772 1 99 1 99 Q2 11 Q1 1 1 556 Bonds 47 % 47 % % 1 53 1 86 1 59 7 Certificate loans 6 % 8 % -2 % Other loans 47 % 45 % 2 % 319 Q2 11 Q1 1 8 4 211 212 213 214 Certificate loans 327 215 216 Bonds 217 218 219 Other loans 256 22 Loans at maturity, next 12 months NOK million 221 Nominal value - market value of loans Market value interest rate swaps Average interest incl. derivatives Proportion of loan portfolio with fixed interest Loans at maturity next quarter (NOK million) Unused drawing facilities (NOK million) -184-11 -74-8 -11 3 4,4 % 4,2 %,2 % 45 % 37 % 8 % 127 1 289-1 162 5 194 4 677 517 77 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Certificate loans Bonds Other loans s.24
Power and CO2 price development 135 EUR 12 15 9 75 6 45 EUR/MWh 3 15 EUR/tCO2 mai.9 jun.9 aug.9 sep.9 okt.9 des.9 jan.1 mar.1 apr.1 mai.1 jul.1 aug.1 sep.1 nov.1 des.1 jan.11 mar.11 apr.11 jun.11 jul.11 FWD 214 FWD 212 CO2 211 Nordic spotmarket s.25 Source: www.nasdaqomxcommodities.com per 3 June 211
Hydropower Glomma waterway flow 3 m3/sek. 2 5 2 1 5 1 5 jan feb mar apr may jun jul aug sep oct nov dec 211 21 Max. capacity utilization Q2 211 production: 3% below normal for the reporting period. Maximum capacity utilization: 1, m³. Projected Q3 211 production: about 94 GWh (approx. 6 GWh below normal for the reporting period) provided normal reservoir levels and precipitation. s.26
Other Activities NOK million Q2 11 Q2 1 YTD 11 YTD 1 Support (31) (27) (71) (59) Power trading (2) 9 (19) 6 Real estate 7 8 9 13 Billing and customer service 26 19 45 43 Financial derivatives, ass. comp. 32 3 41 2 Other (1) (1) Operating profit other 33 11 5 23 s.27
Shareholders as of 3 June 211 # Shareholder Shareholding in thousands Class A shares held Class B shares held Total Ownership Share of voting rights 1 City of Oslo 67 525 37 343 14 868 53.7 % 58.5 % 2 Fortum Forvaltning AS 37 853 28 76 66 559 34.1 % 32.8 % 3 Østfold Energi AS 5 21 4 5 25 2.7 % 4.5 % 4 Odin Norden 2 447 2 447 1.3 %. % 5 MP Pensjon PK 1 579 1 579.8 %. % 6 Odin Norge 1 224 1 224.6 %. % 7 Folketrygdfonet 85 494 579.3 %.1 % 8 Hafslund ASA 397 397.2 %. % 9 AS Herdebred 17 276 383.2 %.1 % 1 New Alternatives Fund, Inc 328-328.2 %.3 % Total, 1 largest shareholders 111 99 72 47 183 569 94. % 96.2 % Other shareholders 4 329 7 288 11 617 6. % 3.8 % Total 115 428 79 758 195 186 1 % 1 % s.28 Note: Shareholdings in thousand shares.
Key figures Group YTD 211 YTD 21 Capital matters Total assets 25 799 27 653 Captial employed 22 342 23 835 Equity 8 621 9 14 Market capitalization 12 275 11 44 Equity ratio 33 % 33 % Net interest-bearing debt 1 168 11 275 Profitability excl. REC Profit after tax (188) (1 518) Earnings per share (EPS) (.96) (7.78) Cash flow per share 13.78 7.61 District Heating YTD 211 YTD 21 Capital employed 4 65 4 251 Sales price (NOK/kWh).78.71 Gross margin (NOK/kWh).36.36 Sales volume (GWh) 925 954 Power Generation YTD 211 YTD 21 Capital employed 4 433 4 35 Sales price (NOK/kWh).41.39 Production volume (GWh) 1 294 1 349 Network YTD 211 YTD 21 Capital employed 8 83 8 966 Annual Income ceiling 2 49 2 891 NVE-capital (regulatory) 6 233 6 166 Power Sales YTD 211 YTD 21 Capital employed 1 61 1 836 - of this working capital 373 641 Total volume (GWh) 8 467 8 8 Venture YTD 211 YTD 21 Capital employed exl REC 812 1 514 Market value REC 826 1 39 s.29
Definitions Items Definition Group Capital employed Equity + Net interest-bearing debt + Net tax positions Equity ratio (in%) (Equity incl. Minority interests / Total assets) X 1 Earnings per share Profit after tax / Average no. of shares outstanding Cash flow per share Net cash from operations / Average no. of shares Return on equity Result after tax / Average equity (incl. Minority interests) Return on capital employed Operating profit / (Average equity + Net interest-bearing debt + Net tax positi Power generation Mean production Average power generation over the past 1 years.
Investor information Additional information is available from Hafslund s website: www.hafslund.no You can subscribe to Hafslund press releases Group SVP & CFO, Finn Bjørn Ruyter finn.bjorn.ruyter@hafslund.no tel: +47 911 38 199 SVP Communications and Corporate Social Responsibility, Karen Onsager karen.onsager@hafslund.no tel: +47 92 87 7 Financial Director and Investor Relations contact, Morten J. Hansen mjh@hafslund.no tel: +47 98 28 577
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