Elmera Group ASA

Investor Presentation • Nov 1, 2023

Quarterly presentation Q3 2023

ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)

Highlights Q3 2023

ROLF BARMEN (CEO)

C O N S U M E R

Volume growth YoY Price increase during the quarter, with effects into Q4 Improved brand reputation and increased rating on app

B U S I N E S S

Volume growth YoY Mitigated negative macro-effects and delivers growth on core business

N E W G R O W T H I N I T I AT I V E S

Strong quarter with significant growth in net revenue, particularly driven by Mobile

N O R D I C

Volume decrease and de-risk progressing according to plan Migration to the Group's IT platform scheduled for 2024

Market development

Monthly supplier changes in Norway ('000)²

Sources:

1) Weekly system prices in NOK from Nordpool.

2) Number of successful supplier changes in Norway from Elhub.

4

Improved brand position Improved brand position for the Group's largest brand

"Fjordkraft stands out as the most attractive alternative for customers considering a new supplier."

"Fjordkraft maintains the number one position on top of mind and brand awareness, by a solid margin."

Results from Kantar 2nd tertial report – market survey consumer market in Norway.

Sources: Kantar 2nd tertial report 2023

5

Financial review Q3 2023

HENNING NORDGULEN (CFO)

Key financials Q3 2023

Net revenue adj. NOK 350m (NOK 424m) and EBIT adj. NOK 53m (NOK 121m), driven by product mix changes in the Consumer segment.

Strong revenue growth in New Growth Initiatives, partly driven by migration specific revenue in the Mobile segment.

Opex adj. NOK 297m in Q3 (NOK 303m). Cost efficiency process continues.

Strong FCF in the quarter and reduced financing costs from Q2.

QoQ reduction in NWC and NIBD due to seasonally lower volumes and reduced elspot prices

Consumer segment

Last twelve months

EBIT adj. (NOKm) & EBIT adj. margin (%)

• Tusener • Number of deliveries fairly stable QoQ, despite price increase notifications.
• Volume sold increased 12% YoY, driven by a 9% increase in avg. volume per delivery.
• Volume sold LTM increased by 6% YoY.
• Net revenue decrease 33% YoY vs. a very strong Q3 '22. The reduction is driven by change in product mix
• Revenue decrease partly offset by OPEX reduction

8

Business segment

Last twelve months

Volume sold (TWh) EBIT adj. (NOKm) & EBIT adj. margin (%)

Net revenue adj. (NOKm)

• Volume sold increased 7% YoY, driven by a 9% increase in number of deliveries.
• Volume sold LTM increased 4% YoY.
• Net revenue adj. affected by low elspot prices, negatively impacting credit compensation and success fees.
• OPEX increase YoY driven by increased IT costs.

9

Nordic segment

Last twelve months

Tusener • Deliveries and volume sold decreased as intended through the phase-out of legacy fixed price contracts with profile and volume risk.

• Net revenue adj. decreased by 26% YoY driven by the reduction in volume.
• Focus on organic growth through spot-based products going forward

New Growth Initiatives

Last twelve months

EBIT adj. (NOKm) & EBIT adj. margin (%)

• Volume decrease YoY driven by a reduction in number of Alliance Partners.

• Two new Alliance partners implemented in the quarter, with effect from 1st October.
• Number of mobile subscribers decreased by 7 thousand in the quarter but stabilising into Q4.
• Net revenue adj. and EBIT adj. increased significantly YoY, driven by discounted data and voice traffic during the migration period. This effect was unique for Q3 '23.
• Following the migration, we expect a NOK 30m improvement in annual EBIT adj. from Mobile compared to pre-migration.

NWC and net cash position

• NWC decreased by NOK 432m QoQ due to seasonally lower volumes and reduced elspot prices
• Overdraft facility draw reduced by NOK 415m QoQ
• NIDB reduced by NOK 471m QoQ

1) The trade payables related to the group's power purchase are interest-bearing, but classified as net working capital in the alternative performance measures

Significant reduction in sales commission spending, strengthening cash flow from operations

Payments to obtain a contract (NOKm)

• Brand strength and lower churn have facilitated significant spending reduction compared to 2021 and 2022.
• Contributes to strengthen operating FCF.
• Amortisation in Q3 2023 of NOK 50m vs. cash spend NOK 34m in the quarter
• Amortisation will converge with reduced cash spending level over time

Outlook

ROLF BARMEN (CEO)

Market update

System price (EUR/MWh)¹

Increased liquidity in financial power trading expected Regulation

2023: Cash deposit partly replaced by bank guarantees.

2023: Phase out of windfall tax from 1 st October 2023

2024: Improved mechanism re. area pricing.

Norges Bank's policy rate (%)²

Not expecting new regulation with significant effect on the group's financial performance.

Focus on compliance.

1)Yearly system prices from NordPool. System price forecast from Volue's "Long Term Price Forecast for Electric Power in the Nordic Countries 2023-2050" 2)Norges Bank (Norwegian central bank)

	Increase penetration in the Business and Nordic segments
Revenue growth	Revise product strategy in the Consumer segment
Cost	Improve cost efficiency
efficiency	Pursue accretive acquisitions
New	Strengthen contribution from the NGI segment
business	Develop new revenue streams and assets

	Increase penetration in the Business and Nordic segments
Revenue growth	Revise product strategy in the Consumer segment
Cost	Improve cost efficiency
efficiency	Pursue accretive acquisitions
New	Strengthen contribution from the NGI segment
business	Develop new revenue streams and assets

	Increase penetration in the Business and Nordic segments
Revenue growth	Revise product strategy in the Consumer segment
Cost	Improve cost efficiency
efficiency	Pursue accretive acquisitions
New	Strengthen contribution from the NGI segment
business	Develop new revenue streams and assets

	Increase penetration in the Business and Nordic segments
Revenue growth	Revise product strategy in the Consumer segment
Cost	Improve cost efficiency
efficiency	Pursue accretive acquisitions
New	Strengthen contribution from the NGI segment
business	Develop new revenue streams and assets

A leading player in the Nordic electricity market

Elmera Group provides consumers, businesses and the wholesale market with electricity, billing & rating services and electricity related technology solutions.

Appendix

Adjusted EBIT reconciliation

NOK in thousands	Q3 2023	Q3 2022 Restated	Full year 2022
Revenue adjusted	1672196	6 260 279	26 806 277
Direct cost of sales adjusted	(1322213)	(5836540)	(25095275)
Net revenue adjusted	349 983	423 739	1711002
Personnel and other operating expenses adjusted Depreciation and amortisation adjusted	(230633) (66 255)	(238188) (64516)	(993 315) (257633)
Total operating expenses adjusted	(296 888)	(302 704)	(1250948)
Operating profit adjusted	53 095	121 035	460 054
Acquisition related costs
Other one-off items	(2330)		(2660)
Depreciation of acquisitions	(30948)	(32775)	(13233)
Estimate deviations			(4472)
Unrealised gains and losses on derivatives	(173157)	971530	(47791)
Change in provisions for onerous contracts	169 212	(1067974)	39 256
Impairment of intangible assets	9957		(39 282)
Operating profit (EBIT)	25 8 28	(8184)	272 781

Profit and Loss account

NOK in thousands	Note	Q 2 20 23	Q3 2023	Q3 2022 Restated	YTD 2023	Restated	YTD 2022 Full year 2022
Continuing operations
Revenue	2,3	3512686	2 2 1 4 7 9 0	6 210 748	13 760 817	17 003 565	25 521 514
Direct cost of sales	2,4	(3147664)	(1868750)	(5883451)	(12539852)	(15 742 896)	(23823519)
Personnel expenses	2	(84078)	(117625)	(109598)	(324541)	(296966)	(421029)
Other operating expenses	2	(144504)	(115341)	(128592)	(416523)	(420 218)	(574946)
Depreciation and amortisation	2,7	(97569)	(97 202)	(97 292)	(293 354)	(288843)	(389956)
Impairment of intangible assets and cost to obtain contracts	2,4,7	5 1 8 2	9957		28 0 29		(39 282)
Operating profit		44 053	25 8 28	(8184)	214 576	254 641	272 781
Income/loss from investments in associates and joint ventures		301	(215)	(548)	1 1 0 3	160	429
Interest income		9915	3 0 0 0	4819	21 4 27	15979	26 952
Interest expense lease liability		(416)	(391)	(467)	(1257)	(1497)	(1934)
Interest expense	11	(43099)	(22829)	(33 283)	(105 447)	(80 802)	(156 876)
Other financial items, net		(3 250)	(2041)	(2538)	(2 208)	(7252)	(12660)
Net financial income/(cost)		(36 549)	(22 477)	(32018)	(86381)	(73 412)	(144089)
Profit/ (loss) before tax		7 5 0 4	3 3 5 1	(40201)	128 194	181 229	128 692
Income tax (expense)/income	5	1883	(627)	(14449)	(19582)	(63027)	(54845)
Profit/ (loss) for the period		9387	2724	(54650)	108 612	118 202	73 847
Profit/(loss) for the period attributable to:
Non-controlling interest		(98)	4 3 6 5		4 2 6 8
Equity holders of Elmera Group ASA		9484	(1642)	(54650)	104 344	118 202	73 847
Basic earnings per share (in NOK)	6	0.09	(0,02)	(0, 50)	0.96	1,06	0.67
Diluted earnings per share (in NOK)	6	0.09	(0,01)	(0, 50)	0.94	1,04	0,66

Balance sheet

NOK in thousands	Note	30 June 2023		30 September 2023 30 September 2022 31 December 2022 Restated
Assets:
Non-current assets
Deferred tax assets		37 478	36 581	35 695	34 990
Right-of-use assets property, plant and equipment		61911	57 462	71 212	66 195
Property, plant and equipment		6818	5881	8 3 5 9	8 1 9 8
Goodwill	7	1 439 625	1 432 102	1 424 603	1418776
Intangible assets	$\overline{7}$	517 436	479 445	593 490	558 325
Cost to obtain contracts		294 076	284 928	328 933	295 980
Investments in associates and joint ventures		15 5 5 2	15 3 37	13 965	14 2 34
Derivative financial instruments and firm commitments	9,10	917 191	775 178	1963853	1863551
Net plan assets of defined benefit pension plans		8476	28 830	100 864	4 178
Other non-current financial assets		44 634	43 060	73 385	48 285
Total non-current assets		3 343 197	3 158 805	4 614 360	4 3 1 2 7 1 1
Current assets
Intangible assets		13611	3 2 3 9	12061	763
Inventories		731	589	2977	460
Trade receivables	8,13	1813334	1 105 127	4590741	7 551 433
Derivative financial instruments and firm commitments	9,10	1050235	733 280	7 630 070	2 370 117
Other current assets		37 244	31 073	104 828	66 0 25
Cash and cash equivalents		145 122	177 466	233 967	70 548
Total current assets		3 060 276	2 050 774	12 574 644	10 059 347
Total assets		6 403 474	5 209 579	17 189 004	14 372 058
Equity and liabilities:
Equity
Share capital		32 590	32 597	32 590	32 590
Share premium		993 294	993 294	993 294	993 294
Retained earnings		247819	249 479	395 882	214 241
Non-controlling interests		115 358	121 185
Total equity		1 389 061	1 396 556	1 421 766	1 240 126

Balance sheet

NOK in thousands	Note	30 June 2023		30 September 2023 30 September 2022 31 December 2022 Restated
Non-current liabilities
Net employee defined benefit plan liabilities		95 462	73533	62 937	79 780
Interest-bearing long term debt	11	583 748	560981	651879	629 169
Deferred tax liabilitites		74 148	77908	126 244	100 280
Lease liability - long term		44 970	42 160	53779	49 477
Derivative financial instruments and firm commitments	9,10	822 951	732 134	1422976	1492743
Onerous contract provisions	4	239 559	51 563	1922579	784 239
Other provisions for liabilities		32 447	29 113	19584	29 619
Total non-current liabilites		1893284	1 567 392	4 259 977	3 165 307
Current liabilities
Trade and other payables	13	804 678	461842	3 3 3 4 7 0	5 828 373
Overdraft facilities	11	525 786	110 932	606 852	534 112
Interest-bearing short term debt	11	368 700	368 700	368 700	368 700
Current income tax liabilities		49 455	51051	67 793	50 506
Derivative financial instruments and firm commitments	9,10	897 973	741801	4512690	1 692 584
Social security and other taxes		81 295	107 526	91 133	313 504
Lease liability - short term		20 422	18 603	21 030	20 284
Onerous contract provisions	4	14517	3376	1799596	285 336
Other current liabilities	12	358 302	381800	705 994	873 227
Total current liabilities		3 121 129	2 2 45 6 31	11 507 260	9 9 6 6 2 5
Total liabilities		5 0 14 4 13	3 813 023	15 767 237	13 131 932
Total equity and liabilities		6 4 0 3 4 7 4	5 209 579	17 189 004	14 372 058

Cash flow

NOK in thousands	Note	Q 2 20 23	Q3 2023	Q3 2022 Restated	YTD 2023	Restated	YTD 2022 Full year 2022
Operating activities
Profit/(loss) before tax		7504	3 3 5 1	(40201)	128 194	181 229	128 692
Adjustments for:
Depreciation	$\overline{7}$	43 078	42 28 2	45 989	129 199	138 277	183 760
Depreciation right-of-use assets		5 2 5 9	5078	4982	15 6 12	15 3 25	20 30 3
Amortisation of cost to obtain contracts		49 233	49842	46 321	148 543	135 242	185 893
Impairment of intangible assets and cost to obtain contracts	4.7	(5182)	(9957)		(28029)		39 28 2
Interest income		(9915)	(3000)	(4819)	(21 427)	(15979)	(26952)
Interest expense lease liability		416	391	467	1 2 5 7	1497	1934
Interest expense		43 099	22829	33 283	105 447	80 802	156 876
Income/loss from investments in associates and joint ventures		(301)	215	548	(1103)	(160)	(429)
Change in long-term receivables		(472)	(447)	(22513)	(1475)	(24 293)	25
Share-based payment expense		675	683	535	2 1 4 5	2214	4790
Change in post-employment liabilities		1322	(16405)	2 2 4 5	(13901)	6 4 2 5	(13607)
Payments to obtain a contract		(3767)	(33924)	(67367)	(112535)	(176664)	(237 550)
Changes in working capital (non-cash effect)
Impairment loss recognised in trade receivables	8	(17890)	(2654)	6653	(3 219)	29 652	4 4 0 2
Provision for onerous contracts	4	(59080)	(169 212)	1067974	(1066481)	2 597 634	(39 256)
Change in fair value of derivative financial instruments	4.9.10	73 090	177 555	(1002524)	1 130 722	(2550069)	12 182
Changes in working capital
Inventories		(234)	142	1048	(129)	(830)	1686
Trade receivables	8	2076965	713 327	(2035092)	6 468 088	559 870	(2385823)
Purchase of el-certificates, GoOs and Climate Quotas		(41854)	(11903)	(1664)	(64522)	(38201)	(38527)
Non-cash effect from cancelling el-certificates, GoOs and Climate Quotas		31 007	22 275	9 1 2 7	62 047	33810	45 373
Other current assets		100 584	6051	(115)	35 607	(64712)	(26609)
Trade and other payables		(1615916)	(338 240)	1671756	(5339362)	(1180085)	1 297 999
Other current liabilities	12	(188 240)	50 26 2	402 965	(698 880)	129 989	515 278
Cash generated from operations		455 472	508 540	119 599	875 799	(139029)	(170 276)
Interest paid		(48516)	(26655)	(33571)	(145663)	(78704)	(123 449)
Interest received		9915	3 0 0 0	4819	21 4 27	15 979	26 952
Income tax paid	5			(189)	(61843)	(109900)	(103339)
Net cash from operating activities		416 871	484 885	90 659	689719	(311654)	(370112)

Cash flow

NOK in thousands	Note	Q 2 20 23	Q3 2023	Q3 2022 Restated	YTD 2023	Restated	YTD 2022 Full year 2022
Investing activities
Purchase of property, plant and equipment		(35)	(111)	(73)	(331)	(2608)	(3325)
Purchase of intangible assets	7	(12828)	(8667)	(8616)	(37532)	(28674)	(41007)
Net (outflow)/proceeds from non-current receivables		2922	2020	1546	6 700	5691	6474
Net (outflow)/proceeds from other long-term liabilities		2 2 7 2	(2806)	865	(1293)	2878	13 4 8 5
Net cash used in investing activities		(7669)	(9564)	(6278)	(32456)	(22712)	(24373)
Financing activities
Proceeds from overdraft facilities	11	(131309)	(414854)	13531	(423180)	606 852	534 112
Proceeds from revolving credit facility	11				150 000	275 000	275 000
Repayment of revolving credit facility	11	(150000)			(150000)
Proceeds from issuance of shares						1 2 1 5	1215
Dividends paid		(162951)			(162951)	(400231)	(400231)
Purchase of treasury shares						(132827)	(132 827)
Sale of treasury shares			490		490
Instalments of long term debt	11	(23, 425)	(23 425)	(23 425)	(70275)	(70275)	(93700)
Transactions with non-controlling interests		115 455	1462		116917
Payment of lease liability		(5325)	(5260)	(4994)	(15897)	(15283)	(20245)
Net cash from financing activities		(357 555)	(441587)	(14888)	(554896)	264 451	163 324
Net change in cash and cash equivalents		51 647	33 734	69 492	102 368	(69915)	(231162)
Cash and cash equivalents at start of period		94 835	145 122	161896	70 548	306 627	306 627
Effects of exchange rate changes on cash and cash equivalents		(1359)	(1390)	2579	4 5 5 0	(2744)	(4918)
Cash and cash equivalents at end of period		145 122	177 466	233 967	177 466	233 967	70 548

Operational FCF excl. NWC

NOK in thousands	Q3 2023	Q3 2022	Last twelve months
EBITDA adj	119 349	185 551	653 003
CAPEX excl M&A	(8 778)	(8 689)	(50 913)
Payments to obtain contract a	(33 924)	(67 367)	(173 421)
"Cash EBIT adj "	76 646	109 495	428 670
Net interest paid	(23 655)	(28 752)	(158 008)
"Cash EBT adj "	52 991	80 743	270 662

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 Elmera Group's expectations and plans, strategy, management's objectives, future performance, costs, revenue, earnings and other trend information. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Elmera Group.

All forward-looking statements in this presentation are based on information available to Elmera Group on the date hereof. All written or oral forward-looking statements attributable to Elmera Group, any Elmera Group employees or representatives acting on Elmera Group's behalf are expressly qualified in their entirety by the factors referred to above. Elmera Group undertakes no obligation to update this presentation after the date hereof.