Elmera Group ASA

Earnings Release • May 12, 2021

Fjordkraft Holding ASA: Q1 2021 results

Fjordkraft Holding ASA: Q1 2021 results

Q1 Highlights:

-6% YoY increase in net revenue and 9% YoY decrease in EBIT adj. versus a historically strong Q1 in 2020

-Unfavourable market dynamics with significant and rapid increase in elspot prices, particularly in January

-Number of deliveries in the Consumer and Business segments decreased by 17,251 in the quarter

-Negative one-off effect of about 10,900 deliveries from the Innlandskraft transaction, primarily due to stop of sales activities and the termination of the Eidsiva brand

-Extended Alliance grew by 2,908 deliveries in the quarter, number of mobile subscribers grew by 2,280, while number of deliveries in the Nordic segment decreased by 3,466 due to phaseout of tender customers with low profitability

Unfavourable market dynamics affecting the quarter

The first quarter of 2021 has been a quarter with great volatility in the electricity market. At the start of the quarter, the Norwegian area prices varied between 24 and 27 NOK øre per kWh. On 8 January, four out of five area prices in Norway were priced at 80 NOK øre per kWh, a rapid and significant increase driven by cold and dry weather. The volatility continued into February, with prices even passing 1 NOK per kWh in certain areas. When prices increase with such magnitude over a short period of time, this puts pressure on the Group’s margins, which is the main driver for the 9% YoY decrease in EBIT adjusted. Net revenue adjusted increased by 6% YoY and was driven by M&A growth.

The number of deliveries in the Consumer and Business segments decreased by 17,251 in the quarter. In Q1, the Group experienced a negative one-off effect of about 10,900 deliveries from the Innlandskraft transaction, primarily due to stop of sales activities and the termination of the Eidsiva brand. The one-off effect from the termination was expected, however, the effect was larger than anticipated. Apart from the negative one-off effect from the termination of the Eidsiva brand, the shutdown of physical distribution channels following Covid-19 has had a negative impact on the Group’s growth figures. Negative media attention following the Consumer Authority dialogue has also had an impact - all these matters are now settled. The certification “Trygg Strømhandel” is progressing as scheduled, and the first electricity retailers are expected to be certified in Q3 2021.

Extended Alliance grew by 2,908 deliveries in the quarter, number of mobile subscribers grew by 2,280, while number of deliveries in the Nordic segment decreased by 3,466 – the latter is related to the phaseout of tender customers with low profitability.

The presentation will be webcasted live at 12 May 2021 at 08.00 CEST:

https://channel.royalcast.com/landingpage/hegnarmedia/20210512_5/

For further information, please contact: Morten A. W. Opdal, Head of Controlling and Investor Relations, +47 970 62 526