Elmera Group ASA

Investor Presentation • May 10, 2023

ROLF BARMEN (CEO) HENNING NORDGULEN (CFO)

• Net revenue adj. NOK 534m (+8% YoY), EBIT adj. NOK 198m (+15% YoY) and volume sold 5.8 TWh (flat YoY)
• The phase-out strategy for the variable product portfolio has had a significant positive impact on the Consumer segment in the quarter, balancing the losses from Q4 '22
• The Business segment continues the strong and consistent financial performance. Organic customer growth of 8 thousand deliveries (+7%) in the quarter, the highest since Q2 '18
• Positive trend in the Nordic segment. The majority of the fixed price contracts with profile risk has been phased out per quarter-end Q1 '23
• Cost efficiency programme progressing according to plan
• The transaction with Telia was completed on 21 April 2023. The guaranteed consideration for 90% of the customer portfolio (NOK 115m) has been received

• Dividend of NOK 1.5 per share was distributed on 5 May '23

• The elspot price remains relatively high, with volatility intra quarter driven by variations in consumption and wind production

• Price volatility more in line with normal historical levels reduced compared to the last two extraordinary quarters
• High gas storage levels in Europe in combination with low consumption reduce the risk of gas shortage for the coming winter
• Normalised markets have contributed to reduced risk in variable contract portfolio and in the residual fixed price portfolio in the Nordic segment

Weekly elspot prices (NOK/kWh)¹

• The transaction with Telia was completed on 21 April
• The guaranteed consideration of NOK 115m for 90% of the customer portfolio has been received
• Calculation of any additional payment will occur once customer migration is completed and will depend on the number of successfully migrated customers
• Customers will be operated through Telia's network and Fjordkraft AS will deliver customer service, operations and branding

• Customer migration expected completed in Q2 '23

DELIVERIES AND VOLUME PER SEGMENT

• Positive development in many of the Group's growth initiatives
• Fjordkraft Mobile expected from break even to cash positive after the migration to Telia's network in Q2 '23
• High penetration of the smart phone application among Alliance partners
• Strong pipeline of solar panel installations in the "Soleklart" concept
• Commercial launch of Steddi's payment solution planned in Q2 '23
• AllRate piloting solution for Norwegian power grid companies

HENNING NORDGULEN (CFO)

• 8% growth in net revenue adj. YoY, with positive development across all segments
• EBIT adj. increase 15% YoY, driven by strong margins in the Consumer segment
• EBIT adj. last twelve months is 485m, corresponding to an EBIT adj. margin of 28% (27% in 2022)

Consumer:

• Phase-out strategy for variable products and increased margins on spot products contributing to net revenue growth

Business:

0%

20%

40%

60%

• Increased margin from Power Sales driving the net revenue growth YoY
• OPEX increase driven by increased IT cost

9

Nordic:

• Positive trend in the segment, as legacy fixed price contract volume with profile risk tapers off

New Growth Initiatives:

• Net revenue growth YoY driven by Alliance
• Growth related costs within Solar panel solutions and AllRate resulting in EBIT adj. decrease YoY

Group OPEX adj. (NOKm)

• Target NOK 100m reduction in Group OPEX run-rate at year-end 2023 compared to year-end 2022
• Number of call centres will be reduced from five to two, centralising in Bergen and Sandefjord
• Net FTE reduction of 10%. Severance expenses of NOK 5m booked in the quarter, covering part of the agreed severance packages

• Continuing process to reduce complexity, harmonise tech platforms and streamline processes

• Payment of the February power purchase has been accelerated in order to reduce financing costs, increasing NWC QoQ

• The decrease in electricity prices from Q4 '22 contribute to reduced financing costs in Q1 '23 compared to Q4 '22
• Strong cash flow from operations excl. NWC in the quarter

ROLF BARMEN (CEO)

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.

Strategic focus areas and activities

Revenue	Increase penetration in the Business and Nordic segments	▪ Focus on cross border expansion and further development of products and services as well as customer growth ▪ Phase out of legacy fixed price contracts with profile risk
growth	Revise product strategy in the Consumer segment	Phase-out strategy of variable products. Will eventually ▪ decrease revenues in the segment, but also reduce risk. The portfolio constitutes 8% of the Consumer segment's deliveries at quarter-end
Cost	Improve cost efficiency	Cost programme progressing as planned ▪
efficiency	Pursue accretive acquisitions
New	Strengthen contribution from the NGI segment	▪ Transaction with Telia completed on 21 April. Customer migration in Q2 '23 ▪ Commercial launch of Steddi's payment solution planned in Q2 '23
business	Develop new revenue streams and assets

NOK in thousands	Q1 2023	Q1 2022 Restated	Full year 2022
Revenue adjusted*	6887391	6 890 652	26 806 277
Direct cost of sales adjusted	(6353834)	(6394326)	(25095275)
Net revenue adjusted	533 557	496 326	1711002
Personnel and other operating expenses adjusted	(267619)	(261188)	(993 315)
Depreciation and amortisation adjusted	(68127)	(62, 406)	(257633)
Total operating expenses adjusted	(335746)	(323 594)	(1250948)
Operating profit adjusted	197 811	172 732	460 054
Acquisition related costs
Other one- off items	(11898)		(2660)
Depreciation of acquisitions **	(30456)	(33713)	(132 323)
Estimate deviations	$\overline{\phantom{a}}$	-	(4472)
Unrealised gains and losses on derivatives	(861843)	(91410)	(47791)
Change in provisions for onerous contracts	838 189	87 378	39 256
Impairment of intangible assets	12890	۰	(39 282)

NOK in thousands	Note	Q1 2023	Q1 2022 Restated	Full year 2022
Continuing operations
Revenue	2,3	8 0 3 3 3 4 1	6 698 553	25 521 514
Direct cost of sales	2,4	(7523438)	(6206259)	(23 823 519)
Personnel expenses	2	(122839)	(111317)	(421029)
Other operating expenses	2	(156677)	(149870)	(574946)
Depreciation and amortisation	2,7	(98583)	(96 119)	(389956)
Impairment of intangible assets and cost to obtain contracts	2,4,7	12890		(39 282)
Operating profit		144 695	134 987	272 781
Income/loss from investments in associates and joint ventures		1017	239	429
Interest income		8512	5 3 7 4	26 952
Interest expense lease liability		(449)	(531)	(1934)
Interest expense	11	(39.519)	(18399)	(156 876)
Other financial items, net		3083	(10094)	(12660)
Net financial income/(cost)		(27355)	(23 411)	(144089)
Profit/ (loss) before tax		117 339	111 575	128 692
Income tax (expense)/income	5	(20838)	(27572)	(54845)
Profit/ (loss) for the period		96 502	84 004	73 847
Basic earnings per share (in NOK)	6	0,89	0.73	0,67
Diluted earnings per share (in NOK)	6	0.87	0.72	0,66

NOK in thousands	Note	31 March 2023	31 March 2022 Restated	31 December 2022
Assets:
Non-current assets
Deferred tax assets		37 573	33 922	34 990
Right-of-use assets property, plant and equipment		68 316	81 286	66 195
Property, plant and equipment		7584	7471	8 1 9 8
Goodwill	$\tau$	1 440 315	1 409 734	1418776
Intangible assets	$\overline{7}$	544 812	650 837	558 325
Cost to obtain contracts		305 303	295 814	295 980
Investments in associates and joint ventures		15 25 1	14 04 3	14 2 34
Derivative financial instruments and firm commitments	9,10	992 526	637 434	1863551
Net plan assets of defined benefit pension plans			46 5 24	4 1 7 8
Other non-current financial assets		47 083	53 732	48 285
Total non-current assets		3 458 763	3 230 798	4 3 1 2 7 1 1
Current assets
Intangible assets		2762	5910	763
Inventories		497	2 1 2 6	460
Trade receivables	8.13	3879133	4570567	7 551 433
Derivative financial instruments and firm commitments	9,10	1 197 091	2028 162	2 370 117
Other current assets		137 944	101 079	66 025
Cash and cash equivalents		94 835	1063717	70 548
Total current assets		5 312 262	7771561	10 059 347
Total assets		8771026	11 002 359	14 372 058
Equity and liabilities:
Eauity

cyuny
Share capital	32 590	34 306	32 590
Share premium	993 294	993 294	993 294
Other equity	389 569	867 171	214 241
Total equity	1 415 454	1894771	1 240 126

NOK in thousands	Note	31 March 2023	31 March 2022 Restated	31 December 2022
Non-current liabilities
Net employee defined benefit plan liabilities		103 321	66 904	79 780
Interest-bearing long term debt	11	606 459	697 299	629 169
Deferred tax liabilitites		86875	134 653	100 280
Lease liability - long term		51 699	63 399	49 477
Derivative financial instruments	9,10	886 683	496 231	1492743
Onerous contract provisions	4	227 534	371 282	784 239
Other provisions for liabilities		30810	16 150	29619
Total non-current liabilites		1993381	1845918	3 165 307
Current liabilities
Trade and other payables	13	2 427 999	4599821	5 828 373
Overdraft facilities	11	657 095		534 112
Interest-bearing short term debt	11	518700	243 700	368700
Current income tax liabilities		34 684	33772	50 50 6
Derivative financial instruments	9,10	985 109	1 152 281	1692584
Social security and other taxes		154 447	154 859	313 504
Lease liability - short term		20 158	21 454	20 284
Onerous contract provisions	4	81 347	597 640	285 336
Other current liabilities	12	482 652	458 143	873 227
Total current liabilities		5 362 191	7 261 670	9 9 6 6 6 2 5
Total liabilities		7 3 5 5 5 7 2	9 107 588	13 131 932
Total equity and liabilities		8771 026	11 002 359	14 372 058

NOK in thousands	Note	Q1 2023	Q1 2022 Restated	Full year 2022
Operating activities
Profit/(loss) before tax		117 339	111 575	128 692
Adjustments for:
Depreciation	$\overline{7}$	43 839	46 734	183760
Depreciation right-of-use assets		5 2 7 6	5 170	20 303
Amortisation of cost to obtain contracts		49 468	44 216	185 893
Impairment of intangible assets and cost to obtain contracts	4,7	(12890)		39 28 2
Interest income		(8512)	(5374)	(26952)
Interest expense lease liability		449	531	1934
Interest expense		39 519	18 399	156876
Income/loss from investments in associates and joint ventures		(1017)	(239)	(429)
Change in long-term receivables		(556)	(897)	25
Share-based payment expense		787	1018	4790
Change in post-employment liabilities		1 1 8 2	2062	(13607)
Payments to obtain a contract		(40935)	(5588)	(237 550)
Changes in working capital (non-cash effect):
Impairment loss recognised in trade receivables	8	17 324	6 28 2	4402
Provision for onerous contracts	4	(838 189)	(87379)	(39 256)
Change in fair value of derivative financial instruments	4,9,10	880 078	91 410	12 182
Changes in working capital:
Inventories		(36)	21	1686
Trade receivables	8	3677797	591 843	(2385823)
Purchase of el-certificates, GoOs and Climate Quotas		(10765)	(72)	(38527)
Non-cash effect from cancelling el-certificates, GoOs and Climate Quotas		8765	1648	45 373
Other current assets		(71028)	(62907)	(26609)
Trade and other payables		(3385206)	97 886	1 297 999
Other current liabilities	12	(560902)	(51356)	515 278
Cash generated from operations		(88214)	754 683	(170 276)
Interest paid		(70492)	(18268)	(123 449)
Interest received		8512	5 3 7 4	26952
Income tax paid	5	(61843)	(99994)	(103339)
Net cash from operating activities		(212037)	641 796	(370112)

NOK in thousands	Note	Q1 2023	Q1 2022 Restated	Full year 202
Investing activities
Purchase of property, plant and equipment		(184)	(159)	(3325)
Purchase of intangible assets	7	(16037)	(8394)	(41 007
Net (outflow)/proceeds from non-current receivables		1758	1949	6474
Net (outflow)/proceeds from other long-term liabilities		(760)	16	13 48
Net cash used in investing activities		(15223)	(6589)	(24 373
Financing activities
Proceeds from overdraft facilities	11	122 983		534 112
Proceeds from revolving credit facility	11	150 000	150 000	275 000
Proceeds from issuance of shares		۰	1 2 1 5	1215
Dividends paid			÷	(400 231
Purchase of treasury shares				(132 827
Instalments of long term debt	11	(23 425)	(23 425)	(93 700
Payment of lease liability		(5312)	(5128)	(20 245
Net cash from financing activities		244 247	122 662	163 324
Net change in cash and cash equivalents		16 986	757 869	(231 162
Cash and cash equivalents at start of period		70 548	306 627	306 627
Effects of exchange rate changes on cash and cash equivalents		7 300	(779)	(4918)
Cash and cash equivalents at end of period		94 835	1 063 717	70 54