Rune Bjerke Group President Hafslund ASA s General Meeting 14 May 2002

Transcription

1 The Group s results, status and challenges for the future Rune Bjerke Group President ASA s General Meeting 14 May 2002

2 Contents The status of the Group Annual result for 2001 Result for the first quarter 2002 Challenges for the future

3 Contents The status of the Group Annual result for 2001 Result for the first quarter 2002 Challenges for the future

4 any individual companies have been rought together to form a single group

5 apital distribution Construction and security 2% Investments 10% Services 0% Power trading 8% Power production 14% Infrastructure 66%

6 rom total integration to specialization Infrastructure Infrastructure Viken Nett AS Construction Construction and and security security Entreprenør AS Installasjon AS Services Services Siffer Service AS Shared services Customer centre

7 rom total integration to specialization 2001: holly integrated ompanies with ultiple functions full restructuring 2002: pecialized usiness areas nd companies Infrastructure Infrastructure Viken Nett AS Construction Construction and and security security Entreprenør AS Installasjon AS Services Services Siffer Service AS Shared services Customer centre

8 he organization of the business Economics Economics and and finance finance ASA Corporate Corporate staff staff Power Power production production Prod. Norge Infrastructure Infrastructure Viken Nett Power Power sales sales Oslo Energi Construction Construction and and security security Entreprenør Services Services Siffer Service Investments Investments Invest Prod. USA Mjøskraft Tindra Sikkerhet Nodenet Venture Viken Fjernvarme Tele Elsikkerhet Fellestjenester Krafthandel Elverum Energiverk Nett Business area Økokraft Installasjon Whollyowned comp. Subsidiaries companies Part-owned > 50 % < 50 % IKT Drift Customer centre Accounting service Eiendom Invest Viken Eiendom

9 Contents The status of the Group Annual result for 2001 Result for the first quarter 2002 Challenges for the future

10 nnual result for 2001 The annual result is presented in two ways: Formal result for the Group Proforma result for the Group

11 ormal result for 2001 Increased power prices and a high output secured a satisfactory result for power production in Norway, but power production in the US was low The power trading business in the US reported poor results and has already wound up Gains on the sale of s regional grid Negative return on the portfolio of short-term investments, although better than the Oslo Stock Exchange s total index Increased tax on high returns and tax on the sale of shares in Actinor Shipping Proposed dividend per share: NOK 1.20

12 ormal result 2001 NOK million Income from operations Operating costs EBITDA Depreciation Operating result Income from share investm. and associates Gain on sale of regional grid 413 Income before financial expense Net financial expense Pre-tax income Tax Profit for period Majority share of income for period Income per share (NOK) 1,02 3,39 Number of shares in '000s

13 roforma result for 2001 Assumptions and limitations: all transactions completed as at 1 January 2000 subject to greater uncertainty than historical figures does not provide a full picture of the position of the business had the merger in fact gone ahead as at 1 January 2000, because: organizational measures have not been implemented the effects of synergies have not been included increased imputed financial expenses as a consequence of the implementation of the transactions as at 1 January 2000, have been included

14 roforma result for 2001 The same factors that impact upon the formal result also affect the proforma result In addition, account must be taken of the following factors: Poorresults for thepower sales business. Poor results for the power trading business of Oslo Energi. Stable operations within the grid business. High costs associated with the development of business and product development. Higher development costs associated with Kankan and James. Higher imputed financial expense. Gains on the sale of s regional grids are eliminated.

15 roforma result for 2001 NOK million Income from operations Operating costs EBITDA Depreciation Operating profit Incme share investments and associates (97) 432 Income before financial expense Net financial expense (835) (841) Pre-tax income (529) 246 Tax (93) (212) Net profit for the period (622) 34 Majority share of income (619) 47 Income per share (NOK) -3,17 0,24 Number of shares in '000s

16 Contents The status of the Group Annual result for 2001 Result for the first quarter 2002 Challenges for the future

17 esult for the first quarter 2002 Satisfactory margins and income within power sales and power trading High power output and higher prices in Norway Stable operations within infrastructure and construction Satisfactoryreturnon the portfolioof financial stockholdings* Cash flowfrom operations: Operating profit: Pre-tax income: NOK 564 million (+ NOK 113 mill.) NOK 257 million (+ NOK 89 mill.) NOK 145 million (+ NOK 132 mill.)

18 alance sheet as at first quarter March % 31 Dec. % NOK million 2002 of total 2001 of total Intangible fixed assets % % Tangible fixed assets % % Financial fixed assets % % Current assets % % Total assets % % Shareholders' equity % % Provisions % % Long-term liabilities % % Current liabilities % % Total equity and liabilities % % Net interest-bearing debt

19 ovements in share prices over the last two years comp. with the Oslo Stock Exchange total index) 140,00 OSEBX A B 130,00 120,00 110,00 100,00 90,00 80,00 70,

20 ovements in share prices over the last two years comp. with European Utility Index) Weighted average A og B European utilities Index

21 afslund in a European perspective 30 % 25 % 20 % 15 % 10 % 5 % Centrica Electrabel E.ON RWE Expected percentage growth in EBITDA on thepreceding year Centrica Electrabel E.ON RWE 0 %

22 Contents The status of the Group Annual result for 2001 Result for the first quarter 2002 Challenges for the future

23 afslund s vision and business concept Vision: will be one of the largest and most innovative energy and supply companies in the Nordic countries dedicated to providing customer-friendly solutions.

24 afslund s vision and business concept Business concept The creation of added value with a particular focus on the distribution and power sales business. The development of the potential that lies in the sale of security products and services to homes and companies. Power production will help to underpin the Group s role as player on the energy market.

25 he largest grid companies No. customers : Other companies TEV Eidsiva approx customers Østnett Agder BKK Viken Skagerak Lyse Østfold/ Sydkraft NTE Troms 0 The Statkraft grouping

26 he largest power sales companies No. customers : approx customers Øko Kraft Tindra TEV Eidsiva Agder Energi Oslo Energi The Statkraft grouping Fjordkraft Lyse Østfold/ Sydkraft NTE Troms Statoil/ Meganor

27 ower sales companies in Europe 35,0 Million power sales customers 30,0 25,0 20,0 15,0 10,0 5,0 EdF e.on Vattenfall Centrica Fortum Sydkraft The Statkraft grouping

28 he value chain and s areas of focus Power production Construction/ Installation Infrastructure Power sales Alarm and security Other security products Finance and insurance Telecoms Traditional value chain Extended value chain

29 he value chain and s areas of ocus today Power production Con- Struction/ Installation Infrastructure Power sales Alarm and security Other security products Finance and insurance Telecoms Traditional value chain Extended value chain

30 he value chain and s areas of ocus Consolidation Kraftproduksjon Entreprenør/ Installasjon Infrastruktur Kraftomsetning Other security products Finance and insurance Alarm og sikkerhet Telecoms Traditional value chain Extended value chain

31 he value chain and s areas of ocus s future development Kraftproduksjon Entreprenør/ Installasjon Infrastruktur Kraftomsetning Alarm og sikkerhet Finance and insurance Andre tillitsprodukter Telecoms Traditional value chain Extended value chain

32 he value chain and s areas of ocus Consolidation Kraftproduksjon Entreprenør/ Installasjon Infrastruktur Kraftomsetning Alarm og sikkerhet Finance and insurance Andre tillitsprodukter Telecoms Focused growth Traditional value chain Extended value chain

33 ey strategic challenges Consolidation and integration exploit synergies create a cost-effective organization exploit inter-group business opportunities Focused growth develop new areas of growth capitalize on the customer base and infrastructure sell products/services where enjoys trust or has a potential for trust Realisation of non-core business re-deployment of capital reduction in debt equity ratio and capital invested Growth without an increase in capital invested

34 he objectives of the Group in the medium to ong term A market value of NOK 10 billion by 2004 Improved solvency ratio (30 percent) The most profitable of the major grid companies A large and profitable Nordic power sales outlet The most profitable energy producer on the Glomma River An exciting player within security-based products/services for the home