Elmera Group (ELMRA) CMD 2024 summary

Strategic direction and business development

• Transitioned from fixed-price to spot-based products in the Nordics, reducing risk and increasing profitability, with Nordic Green Energy regaining profitability and improving brand perception.

• Launching Fjordkraft as a pan-Nordic B2B brand in Sweden and Finland, with unified IT platform migration by H1 2025, and all B2B activities to be unified under the Fjordkraft brand.

• Accelerated digitalization with award-winning apps, loyalty programs, and tech solutions supporting both B2C and B2B customers in optimizing electricity consumption and enabling the green shift.

• Expanded service offerings and growth opportunities through subsidiaries and joint ventures, such as Metzum, AllRate, Kraftalliansen, Steady Payments, SunPool, and Fjordkraft Mobil.

• Positioned for further M&A activity, especially in Sweden and Finland, leveraging a scalable IT platform and resuming M&A as market stabilizes.

Financial outlook and targets

• Achieved NOK 513 million EBIT adjusted in 2023 and NOK 230 million in Q1 2024, with strong cash generation and high cash conversion.

• Targets net revenue growth in all segments for 2024 and 2025, with stable nominal OPEX at NOK 1.2 billion and EBIT adjusted of NOK 550–600 million per year.

• Dividend payout ratio set at a minimum of 80% of net income, with no underlying change in leverage despite increased reported net debt due to sourcing model changes.

• Cost savings program of NOK 100 million largely completed, with ongoing focus on efficiency, scalability, and further gains from IT platform consolidation and personnel management.

• New sourcing agreement with Statkraft from May 2025 will shift some financing to external banks, expected to be cash neutral and support margin improvement, with moderate cost increase offset by sourcing improvements and lower interest rates.

Power trading and risk management

• Insourcing power trading function via Elmera Energy from May 2025, enabling direct participation in Nord Pool, optimizing sourcing, reducing balancing costs, and enabling more flexible trading strategies.

• Market risk significantly reduced by phasing out high-risk, variable, and fixed-price products, adopting back-to-back hedging.

• New balancing market mechanisms and intraday trading expected to lower balancing costs and optimize COGS.

• Volatility from renewable energy growth and electrification trends seen as an opportunity for value creation through advanced trading and customer solutions.

• Power trading team ramping up to 25 FTEs, with costs budgeted and expected to remain stable.