Elmera Group ASA — Investor Presentation 2021

May 12, 2021

Q1 2021 PRESENTATION

Rolf Barmen (CEO) Ole Johan Langenes (Acting CFO)

12th May

Q1 2021 HIGHLIGHTS

Rolf Barmen (CEO)

Highlights first quarter 2021

Unfavourable market dynamics affecting the quarter

• 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

• 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

Key Highlights

1 # of deliveries (end of period)	Δ in # of deliveries (QoQ)
1 005 857	-20 717
Increase of 62 % YoY	Organic growth: -20 717
2 Volume sold	Gross revenue
7 376 GWh	NOK 4 063m
Increase of 78 % YoY	Increase of 210 % YoY
3 Net revenue (adj.) 2	3 EBIT (adj.) K6
NOK 510m	NOK 215m
Increase of 6 % YoY 9	Decrease of -9 % YoY K7
Basic EPS (reported)	K13NIBD (cash)
NOK 1.17	NOK 802m
Decrease of -33 % YoY	K19NIBD/LTM EBITDA: 0.96

• 1) Number of deliveries excl. Extended Alliance deliveries. Number of deliveries incl. Extended Alliance deliveries: 1,064,775
• 2) Not including Alliance volume. Volume turnover for alliance partners in the quarter: 1,665 GWh

³⁾ Adj. Net revenue and EBIT are reported figures adjusted for any estimate deviations on sales and distribution of electricity related to previous reporting periods, special items, unrealised gains and losses on financial derivatives and depreciations from acquisitions

BUSINESS REVIEW

Rolf Barmen (CEO)

Update on Covid-19 and dialogue with the Consumer Authority (CA)

• Impact from Covid-19
• The Norwegian Government is planning that the next step in the reopening process will take place in the second part of May, dependant on number of reported cases and the vaccination progress
• Until reopening, the growth is expected to be hampered by reduced sales activity and shut down of sales channels

• Reduced activity following the governments' measures might have a short-term negative impact on consumption in the Business segment and is also expected to increase voice activity in the Mobile segment, which increases COGS and reduces margins

• All matters that have been discussed with the CA are settled

• The certification "Trygg Strømhandel" is progressing as scheduled, and the first electricity retailers are expected to be certified in Q3 2021

Market development

Key highlights in Q1 2021

• Significant and rapid increase in elspot prices in January negatively affecting margins
• Colder than last year in two out of three months1
• Jan: -3.3°C below normal (7.3°C colder than 2020)
• Feb: -2.0°C below normal (4.3°C colder than 2020)
• Mar: +1.7°C above normal (0.5°C warmer than 2020)

Weekly elspot prices (NOK/kWh)2

Sources:

• 1) Temperature figures from met.no's monthly reports. The normal has been adjusted according to the temperatures in 1991-2020
• 2) Weekly system prices in NOK from Nordpool

Segment development - Consumer

Key highlights in Q1 2021

• Organic decrease of 19,150 deliveries in Q1 2021
• Negative one-off effect from the termination of the Eidsiva brand, shut down of physical distribution and negative media attention driving the development
• Volume growth of 60% YoY, driven by M&A and increased volume per delivery
• Avg. volume per delivery is increasing 17% YoY 5,009 kWh in Q1 2021 vs. 4,287 kWh in Q1 2020
• More than 170,000 unique app users in the quarter new functionality is continuously added to the app

# of electricity deliveries1 ('000)

1) Number of electricity deliveries at the end of the period

Segment development - Business

• Organic growth of 1,899 deliveries in Q1 2021
• Volume growth of 44% YoY, driven by M&A and increased volume per delivery
• Avg. volume per delivery increasing 5% YoY 24,416 kWh in Q1 2021 vs. 23,186 kWh in Q1 2020
• We experience an increasing interest for the local energy solutions in our concept "Klimasmart" and already have customers within aquaculture and real estate. The Energy Management System "Målbart" has also received a warm welcome with several customers signed up

1) Number of electricity deliveries at the end of the period

Key highlights in Q1 2021 # of electricity deliveries1 ('000)

| Quarterly Presentation | Q1 2021

New Growth Initiatives & Nordic

• Growth of 2,280 mobile subscribers in Q1 2021
• Fjordkraft will transition from using eRate's service provider platform to their new MVNO platform (mobile virtual network operator)
• The transition is expected to start in Q4 2021 and will increase the profitability of the mobile business
• 26% YoY Alliance volume increase driven by inclusion of the volume from the Innlandskraft transaction
• Growth of 2,908 electricity deliveries within Extended Alliance, comprising 58,918 deliveries at the end of Q1 2021
• Number of deliveries in the Nordic segment decreased by 3,466 in the quarter. The reduction is related to the phaseout of tender customers with low profitability, and the strategic customer segments are developing positively

Sources: Company information

1) Number of mobile subscribers at the end of the period

Key highlights in Q1 2021 # of Mobile subscribers1 ('000)

FINANCIAL REVIEW

Ole Johan Langenes (Acting CFO)

Net revenue development

• Net revenue growth of 6% YoY, driven by M&A
• Consumer segment negatively affected by unfavourable market dynamics in the quarter. Q1 20 representing very strong comparables
• Strong development in the business segment, driven by volume growth both from M&A and increased volume per delivery
• The Nordic segment was established in Q4 2020, following the acquisition of SNG, and is therefore having a positive effect on YoY figures
• Last twelve months adj. net revenue growth of 13% YoY, driven by M&A

EBIT adj. development

Change in adj. EBIT (NOKm)

• EBIT adj. decrease 22 NOKm YoY

• Decrease driven by the net revenue development in the Consumer segment, while the other segments increase in EBIT adj. YoY
• Adj. EBIT margin decreasing 7 pp YoY
• Adj. EBIT margin LTM is decreasing 2 pp YoY

Segment overview

Consumer segment Business segment

• YoY net revenue decrease driven by unfavourable market dynamics, reducing margins

• Significant EBIT margin decrease YoY vs. a historically strong Q1 in 2020

• Increase in adj. net revenue is driven by volume growth, both from M&A and from increased volume per delivery

• Significant EBIT margin increase YoY, driven by the volume growth

Segment overview cont.

• The Nordic segment is developing as planned, and improving from Q4 2020. The Q4 2020 figures only include the period 11 November to 31 December

• Both YoY net revenue and EBIT adj. improvement driven by both Alliance and Mobile

NWC development

Net working capital1 (NOKm)

• Net working capital (NWC) is increasing to 542 NOKm at quarter-end Q1 2021
• In addition to seasonality and increased prices and volumes, NWC was impacted by quarter-end during Easter public holidays, which affected the timing of customer payments, leading to temporarily increased accounts receivables at the end of the quarter
  • NWC was negative again at the end of April

Sources: Company information

1) NWC includes the following items from current assets: Inventories, intangible assets, trade receivables, derivative financial instruments and other current assets (that is, all current assets in the balance sheet except cash and cash equivalents); and the following items from current liabilities; trade payables, current income tax liabilities, derivative financial instruments, social security and other taxes and other current liabilities excl. 46 NOKm in short-term interest bearing debt

2) Volume sold in the Consumer, Business and Nordic segments

3) Average of daily system prices in NOK

| Quarterly Presentation | Q1 2021

Net cash development

Change in net cash Q-o-Q (NOKm)

Sources: Company information

1) OpFCF defined as EBITDA adj. less CAPEX excl. M&A and payments to obtain contract assets

2) Non-cash NWC relates to items included in "change in NWC" that are not affecting net cash position. Other includes interest, tax, change in long-term receivables, proceeds from non-current receivables, proceeds from other longterm liabilities, share based payment expense, change in post-employment liabilities, payment of lease liability and adjustments made on EBITDA.

| Quarterly Presentation | Q1 2021

Outlook for 2021-20231

Group	 Targeting high-single digit net revenue growth. 2021 expected above double digit due to acquisitions in 2020  Targeting a sustainable EBIT margin of 36-38%  Ambition to act as a consolidator in a fragmented market
	Growth	 Targeting mid-single digit annual net revenue growth	Revised in Q1: Expecting a slightly negative net
Consumer	EBIT margin	 Targeting a sustainable level of 32-34%	revenue growth and an EBIT margin in the area of 30% in 2021
	Growth	 Targeting a sustainable level of mid-single digit growth. 2021 expected above double digit due to acquisitions in 2020
Business	EBIT margin	 Targeting a sustainable level of 52-54%	Revised in Q1: Expecting a higher EBIT margin than targeted in 2021
Nordic		Targeting an annual EBIT contribution of ~50 NOKm	Revised in Q1: Expecting an EBIT contribution of ~65 NOKm in 2021
NGI		Targeting a 50% improvement in nominal EBIT from 2020 to 2021 and a positive run-rate EBIT from late 2021	Revised in Q1: Expecting a 75% improvement in nominal EBIT from 2020 to 2021
Cap.ex.		Targeted to be in the area of NOK 65-70m annually
Leverage	 Targeting a leverage of 2-2.5x NIBD/EBITDA with variations intra-year due to seasonality in net working capital  Current balance sheet enabling substantial capacity to finance acquisitions
Dividend	Target pay-out ratio of at least 80% of net income, adjusted for certain cash and non-cash items2   Attractive and increasing dividend

1) Outlook on an organic basis, not including additional M&A transactions in the period. All targets are based on adjusted figures, further described under alternative performance measures in the quarterly report 2) Adjusted EBIT + net finance – estimated tax – amortisation of acquisition debt

Appendix

PROFIT AND LOSS ACCOUNT

NOK in thousands	Note	01 2021	01 2020	Full year 2020
Continuing operations
Revenue	2,3	4 0 6 2 9 5 2	1310256	4214727
Direct cost of sales	2	(3553371)	(828855)	(2647005)
Revenue less direct cost of sales		509 581	481 402	1 5 6 7 7 2 2
Personnel expenses	2	(111493)	(78596)	(328485)
Other operating expenses	2	(131 246)	(124593)	(471938)
Depreciation right-of-use assets		(4663)	(3100)	(13302)
Depreciation and amortisation	2,7	(95111)	(45647)	(291 872)
Total operating expenses		(342514)	(251936)	(1105596)
Impairment and change in provision for onerous contracts	4	9122		(268493)
Other gains and losses, net	4,9	5388	1906	331 539
Operating profit		181 577	231 371	525 172
Income/loss from investments in associates and joint ventures		734	(153)	1168
Interest income		2499	6381	16814
Interest expense lease liability		(658)	(429)	(1813)
Interest expense	10	(10219)	(1658)	(11982)
Other financial items, net		(12922)	240	(15692)
Net financial income/(cost)		(20 566)	4 3 8 2	(11505)
Profit/ (loss) before tax		161 011	235 754	513 667
Income tax (expense)/income	5	(27368)	(52084)	(113604)
Profit/ (loss) for the period		133 643	183 670	400 063
Basic earnings per share (in NOK)*	б	1,17	1,76	3,73
Diluted earnings per share (in NOK)*	6	1,15	1,74	3,69

ADJUSTED EBIT reconciliation

NOK in thousands	01 2021		Q1 2020 Full year 2020
Revenue adjusted	4062952	1310256	4 183 361
Corporate 1)			29 650
			1716
Special items 2) Revenue	4 0 6 2 9 5 2	1310256	4 214 7 27
Direct cost of sales adjusted	(3553371)	(828855)	(2639876)
Corporate 1)			(7129)
Direct cost of sales	(3553371)	(828855)	(2647005)
Revenue less direct cost of sales adjusted	509 581	481 402	1 543 486
Corporate 1)			22521
Special items 2)			1716
Revenue less direct cost of sales	509 581	481 402	1 5 6 7 7 2 2
Total operating expenses adjusted	(294 293)	(243760)	(935 208)
Special items 2)	2 3 5 4		(42213)
Depreciation of acquisitions 3)	(50575)	(8177)	(128175)
Total operating expenses	(342514)	(251936)	(1105596)
Impairment and change in provision for onerous contracts	9122		(268493)
Other gains and losses 4)	5388	1906	331 539
Operating profit	181577	231 371	525 172
Income/loss from investments in associates and joint ventures	734	(153)	1168
Interest income	2499	6381	16814
Interest expense lease liability	(658)	(429)	(1813)
Interest expense	(10219)	(1658)	(11982)
Other financial items, net	(12922)	240	(15692)
Profit/(loss) before tax	161 011	235754	513 667

ADJUSTED EBIT reconciliation cont.

NOK in thousands	01 2021		01 2020 Full year 2020
Special items incurred specific to:
- acquisition related costs and implementation costs	(7485)		(21579)
- income related to compensatory damages	$\sim$		1716
- one off amortisation of customer contracts in acquired companies		$\sim$	(5745)
- severance packages and other one off costs in acquired companies.	6451	$\sim$	(14889)
- gain from sale of trade receivables previously impaired	3387	$\sim$
Special items	2 3 5 4		(40 497)

NOK in thousands	01 2021		01 2020 Full year 2020
TrønderEnergi Marked acquisition	(2608)	(5180)	(20718)
Oppdal Everk Kraftomsetning acquisition	(572)	(787)	(3148)
Vesterålskraft Strøm acquisition	(484)	(565)	(2261)
Innlandskraft acquisition	(35, 446)		(36254)
Troms Kraft Strøm acquisition	(10625)		(7037)
Troms Kraft Strøm acquisition - Depreciation of fixed price customer contracts			(52910)
Other customer acquisitions	(839)	(1645)	(5847)
Depreciation of acquisitions	(50575)	(8177)	(128175)

BALANCE SHEET

NOK in thousands	Note	31 March 2021	31 March 2020	31 December 2020
Assets:
Non-current assets
Deferred tax assets		35143		37316
Right-of-use assets property, plant and equipment		92302	62 255	81724
Property, plant and equipment		8819	6656	8409
Goodwill	7	1424680	166 696	1442849
Intangible assets	7	798 173	166816	869 568
Cost to obtain contracts		191660	154 149	172656
Investments in associates and joint ventures		11902	9847	11168
Other non-current financial assets		62 488	39510	63877
Total non-current assets		2 625 166	605 929	2 687 566
Current assets
Intangible assets		3443	4730	2880
Inventories		6248	452	2398
Trade receivables	8, 10, 12	2 279 982	867893	1476927
Derivative financial instruments	9	138514	350 901	193175
Other current assets		111145	113 324	167065
Cash and cash equivalents		561092	691735	599348
Total current assets		3 100 423	2029035	2 441 793
Total assets		5725589	2 634 964	5 1 29 3 5 9

Equity
Share capital	34 285		34 285
Share premium	991614	27.353	991 614
Retained earnings	1034773	005256	918148
Total equity	2060 672	1163980	1944047

BALANCE SHEET

NOK in thousands	Note	31 March 2021	31 March 2020	31 December 2020
Non-current liabilities
Net employee defined benefit plan liabilities		79688	100 008	110828
Interest-bearing long term debt	10	789 260	125100	812808
Deferred tax liabilitites		140118	17667	130 499
Lease liability - long term		78133	52 848	67 442
Other provisions for liabilities		14501		14 649
Total non-current liabilites		1101701	295 623	1136225
Current liabilities
Trade and other payables	12	1 365 123	388040	1029 604
Overdraft facilities	10	472 648		29 400
Current income tax liabilities		35912	76 160	129098
Derivative financial instruments	9	53722	337719	110616
Social security and other taxes		170295	105678	143425
Lease liability - short term		17414	11951	17 366
Other current liabilities	$ \cdot $	448 103	255812	589 578
Total current liabilities		2 5 6 3 2 1 6	1175 360	2049087
Total liabilities		3 664 917	1 470 983	3185312
Total equity and liabilities		5725589	2 634 964	5129359

CASH FLOW

NOK in thousands	Note	Q1 2021	Q1 2020	Full year 2020
Operating activities
Profit/(loss) before tax		161011	235754	513667
Adjustments for
Depreciation	7	61838	17257	168012
Depreciation right-of-use assets		4663	3100	13 30
Amortisation of contract assets		33 27 3	28 391	123860
Impairment of intangible asset	4.7	9533		197 470
Interest income		(2499)	(6381)	(16814
Interest expense lease liability		658	429	1813
Interest expense		10219	1658	1198
Income/loss from investments in associates and joint ventures		(734)	153	(1168)
Change in long-term receivables		297	(13820)	(7686)
Share based payment expense		919	777	3252
Change in post-employment liabilities		1976	2 5 8 2	(302)
Payments to obtain a contract		(53206)	(23304)	(137 280
Changes in working capital (non-cash effect)
Impairment loss recognised in trade receivables	8	(4581)	16736	1934
Provision for onerous contracts recognised in other current liabilities	4	(18655)		71023
Change in fair value of derivative financial instruments	4.9	(5388)	(1906)	(331 539
Changes in working capital
Inventories		(3850)	342	(1453)
Trade receivables	8	(813933)	622838	260 279
Purchase of el-certificates		(84153)	(245712)	(245712
Non-cash effect from cancelling el-certificates		83 978	263782	263 594
Purchase of guarantees of origination		(4320)	(1397)	(4 0 6 4
Non-cash effect from disposal of quarantees of origination		3949	2357	7089
Other current assets		54117	(94858)	1943
Trade and other payables		350 929	(430103)	61721
Other current liabilities	11	(72240)	(347136)	(351741
Cash generated from operations		(286197)	31 5 36	638 087
Interest paid		(11060)	(2209)	(22058
Interest received		2 4 9 9	6381	16814
Income tax paid	5	(122145)	(90024)	(113 533
Net cash from operating activities		(416903)	(54316)	519 30!

CASH FLOW

NOK in thousands	Note	01 2021	01 2020	Full year 202
Investing activities
Purchase of property, plant and equipment		(1291)		(49)
Purchase of intangible assets	7	(13418)	(15079)	(6476)
Proceeds from sale of intangible assets	7		10000	1000
Net cash outflow on acquisition of subsidiares				(103352)
Net cash outflow on acquisition of shares in associates			(10000)	(10000
Net (outflow)/proceeds from non-current receivables		1092	(325)	(1698)
Net (outflow)/proceeds from other long-term liabilities		829		(196)
Net cash used in investing activities		(12788)	(15404)	(1 1 1 5 9 7 0
Financing activities
Proceeds from overdraft facilities	10	443 248		2940
Proceeds from revolving credit facility	10			50000
Repayment of revolving credit facility	10			(500 000
Proceeds from issuance of shares			2341	273
Dividends paid				(31371)
Formation expenses				(10)
Proceeds from long term debt	10			93700
Instalments of long term debt	10	(23 425)	(13900)	(6512)
Repayment of long term debt	10			(152900
Payment of lease liability		(4530)	(2522)	(12.450)
Net cash used in financing activities		415 293	(14081)	424 92
Net change in cash and cash equivalents		(14398)	(83801)	(171736)
Cash and cash equivalents at start of period		599 348	775 536	77553
Effects of exchange rate changes on cash and cash equivalents		(23859)		(4450)
Cash and cash equivalents at end of period		561 092	691735	599 34

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 Fjordkraft'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 Fjordkraft.

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

For more information: Fjordkraft's Investor Relations Morten A. W. Opdal +47 970 62 526 morten.opdal@fjordkraft.no