Elmera Group ASA

Earnings Release • Aug 22, 2019

Fjordkraft Holding ASA: Q2 2019 results

Fjordkraft Holding ASA: Q2 2019 results

Q2 Highlights:

-Strong YoY growth in net revenue adj. and EBIT adj. driven by strong price management and favourable market dynamics

-Adjusted net revenue increasing 13% YoY

-Adjusted EBIT increasing 26% YoY

-Strong growth in number of mobile subscribers - passing 80 thousand and further strengthening our position as the largest mobile service provider without its own mobile network

-Successful acquisition of Vesterålskraft Strøm AS. Transaction completed 1 July 2019

Another solid quarter driven by strong price management and favourable market dynamics

The second quarter 2019 has been another solid quarter for Fjordkraft. Adjusted net revenue is increasing 13% YoY and adjusted EBIT is increasing 26% YoY. Strong price management in combination with favourable market dynamics are the most important factors behind the strong results.

Temperatures in the quarter has been warmer than normal in two out of three months, and April was especially warm with 3.3 degrees Celsius above normal. While the higher than normal temperature negatively affects average volume per delivery, the total volume sold is still stable YoY. This is due to an increase in number of deliveries and shows the importance of growth when consumption is affected by external factors. The organic growth in the quarter amounted to 911 electricity deliveries in the Consumer and Business segments. We are still seeing some negative effects from the implementation of Elhub and given this, we are happy with our growth. Number of mobile subscribers grew by 9,446 in the quarter and is the highest quarterly growth since Q1 2018.

There has been one new acquisition on the quarter – Vesterålskraft Strøm with around 8.6 thousand electricity deliveries. Through the transaction we get a new regional office in the northern part of Norway, enabling us to grow our market share in an unchartered territory for Fjordkraft. The transaction was completed on 1 July 2019 and will be included in the Company’s figures from Q3.

For more details, please see the enclosed report and presentation.

For queries, please contact:

Morten A. W. Opdal, Head of Controlling and Investor Relations, +47 970 62 526