Hafslund a pure play utility

Transcription

1 Hafslund a pure play utility Swedbank Nordic Energy Summit March 2014 Finn Bjørn Ruyter CEO, Hafslund ASA

2 Disclaimer Certain statements included within this presentation contain (and oral communications made by or on behalf of Hafslund may contain) forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of managements' plans, objectives and strategies for Hafslund, such as planned expansions and investments, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hafslund's, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "propose", "intended" or similar statements. Although Hafslund believes that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause Hafslund's actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to, world economic growth and other economic indicators, including rates of inflation and industrial production, trends in Hafslund's key, energy prices and changes in governmental regulations. No assurance can be given that such expectations will prove to have been correct. Hafslund disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The Hafslund shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. p.2

3 Hafslund more than 100 years of history Illustrative historical overview of current business areas Capital employed NOK 20.9 billion per Production 1.8 TWh customers customers TWh p.3 Source: company information

4 Earnings per share Per quarter NOK p.4 Current share price ~ 48 NOK

5 EBITDA 2013 EBITDA 2013 NOK mill ,446 1, Production Network Other EBITDA p.5

6 Results 2013 Key figures 2013 Group profit and loss account NOK million Operating revenue Gross margin EBITDA Operating profit Profit after tax 747 Earnings per share (EPS) in NOK 3.83 Dividend proposed in NOK per share 2.50 Balance sheet NOK million Assets Equity (incl. min. int) Net interest-bearing debt Equity ratio 30 % Key figures 2013 Return on capital employed 8.0 % Return on equity 10.2 % Figures per p.6

7 Production Production overview OSLO p.7

8 Three large power stations in the river of Glomma Production 3 large river based power plants: Kykkelsrud Vamma Sarpefossen / Hafslund 3.1 TWh/y 560 MW p.8

9 Production Run of river plants Glomma waterway flow and maximum capacity utilization m3/sec Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Normal* (weekly average) Waterway flow 2013 (weekly average) Max. capacity utilization p.9

10 Production Expansion projects Upgrading and expansion projects Key value driver power price NOK/kWh FKF4 operational 2011 (+ 100 GWh) Vamma 12 possibility study (+ 160 GWh) Nordic power prices - System Period average * Period average is based on the average of forward prices for SYS per Source: and p.10

11 Production overview OSLO p.11

12 District heating covers ~ 25% of the heating need in Oslo Production Key data: 310 km of district heating pipelines 13 heating plants 4400 buildings Location District heating produced and distributed in 2013: Energy: 1.8 TWh Non-fossil share: 97 % Fuel mix 2013: Electricity Biooil Oil and gas 3% 3% 31% 49% 6% 8% Pellets pump Waste and biomass p.12 Concession area Developed

13 District heating volume is temperature dependent Production District heating volume in Oslo and temperature Oslo, Blindern GWh Temperature, C Jan Feb Mar Apr May Jun Jul Aug Sep Ocgt Oct Nov Dec -5 Normal* (GWh) production 2013 (GWh) Temperature Oslo, 2013 ( C) p.13 Source: Hafslund (volumes), Norwegian Meteorological Institute (temperature statistics) *Normal Estimated based on production with normal outdoor temperatures (average last 10 years)

14 Production District heating has flexibility Installed capacity, MW 900 Switching depends on prices Oil 229 MW Natural gas 100 MW C Bio-oil 220 MW C Electricity 246 MW Pellets 56 MW pumps 30 MW p.14 0 Full load hours Waste and biomass 161 MW

15 Production overview OSLO Regional grid Distribution and Regional grid p.15

16 Production A large grid operator in Norway Key info: One of Norway s most efficient grid operators with few power outages Regional and distribution grid ~ km power lines Automatic metering systems within customers Largest distributors by number of customers p.16 0 Hafslund Skagerak Source: NVE BKK Agder Energi Eidsiva Lyse Fortum TrønderEnergi NTE Troms Kraft

17 Hafslund has one of Europe s most advanced operating centers Production 24/7 for all areas Monitoring the distribution networks for 1,4 mill. people Fleet management of both own and external field teams Economies of scale and operational synergies p.17

18 Largest power sales company in Norway and 5 th largest in the Nordics Production # Customers High competition a marketing & margin game Multiple brand names - common back office functions p.18

19 THE FUTURE CUSTOMER - Power = Watt - Security of supply - Environment - Prosumers p.19

20 THE FUTURE «PROSUMER» Distr. network + p.20 District heating - Pumps

21 Sustainability in all business areas Production p.21

22 Continued growth within existing business areas Production 1.8 TWh customers Continued organic growth in Oslo High organic growth customers Population growth and structural opportunities TWh Expansion projects and structural opportunities p.22

23