Hafslund - a pure play utility

Transcription

1 Hafslund - a pure play utility Swedbank First Securities Nordic Energy Summit March 2013 Heidi Ulmo CFO, Hafslund ASA

2 Disclamer 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 markets, 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 realised. 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 markets, 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. 2

3 Hafslund a leading Norwegian utility Norway s largest grid company 562,500 customers Norway s largest district heating operator 1.8 TWh Norway s largest retail power supplier 5 th largest in the Nordic region A medium sized power producer 905,000 customers 3.1 TWh 3

4 More than 100 years of history Viken Energi Røyken Kraft Oslo Energi Gjermå Kraft Tindra Varslingssystemer Norges Energi Vaktservice Fredrikstad Energi SES ØkoKraft Göta Energi AB Energibolaget AB 1898 Hafslund established 1986 Nycomed part of Hafslund 1996 Demerger Hafslund Nycomed Restructuring Integration Value creation 2008 Focusing on renewable energy Spin-off: Infratek Established in the Nordic Power market Spin-off: High voltage grid and Venture area An integrated and focused energy company 4

5 Recent years focus on core business Capital employed [MNOK] Divestments Other Fiber Central grid plants Other businesses Markets Network Production 0 Heat

6 A strong position in the entire value chain Energy generation (wholesale) District heating Distribution Power sales (retail) PRODUCTION HEAT NETWORK MARKETS Capital employed 100% = NOK 21.7 billion EBITDA 100% = NOK 2,114 million Markets Other 8% 2% 22% Production Markets 17% Other 0% 22% Production Network 43% 26% Heat 46% 14% Heat Network 6 Note: 2012 figures. Other segment with negative profit contribution

7 Oslo PRODUCTION Normal production 3.1 TWh/year 3 large power stations in Glomma Completed building of new power station in 2011 River based Acquired prior to the reversion regime Partial price hedging 7

8 HEAT Norway s largest district heating operator Annual heat production: 1.8 TWh District heating system in Oslo Two smaller heat and steam based plants Revenue regulated by power prices >90% of fuel based on renewable energy sources From growth to consolidation and improved profitability 8 Concession area Developed grid

9 Oslo Regional grid Distribution and Regional grid 9 NETWORK Norway s largest grid company Located in the extended Oslo region 562,500 customers Regional and distribution grid Fully regulated through the Energy Act Automatic metering systems within 2019 One of Norway s most efficient grid operators with few power outages

10 MARKETS Norway s largest retail power supplier Fifth largest in the Nordic countries Several brand names - common back office functions 905,000 customers Fully deregulated and highly competitive market Well positioned for organic growth 10

11 The Nordic power market a key driver for profitability Yearly generation in Norway: 130 TWh of which 95% hydropower 90 % of Norwegian hydropower is publicly owned Power prices are set on the Nordic power exchange (Nord Pool) and prices are driven by Short run marginal cost of coal power generation Hydrological situation in the Nordic region Transmission lines Green certificates from

12 Uncertainty regarding future power prices in the Nordic region NOK/kWh 0,45 0,40 0,35 0,30 0,25 0,20 28 NOK/kWh* 0,15 0,10 0,05 0, Nordic power price - System Period average 12 *Period average is based on averages of forward prices for SYS. Source: and

13 other key value drivers Swap interest rate Network regulated-income model from 2013 based on swap interest rate Financing cost Regulatory regime Regulated revenue regime Network and Heat Automatic metering systems by 2019 El-certificates National hub Efficient operations Organic growth Efficient operations Risk management 13

14 Historic organic growth within core business units Markets Customers (thousands) customers Growth % more customers 2013 and forward High growth Production 3,5 3,0 2, GWh 7% higher volume Upgrades and green certificates TWh/yr 2,0 Network Customers (thousands) customers 5% more customers Increased growth Heat GWh 90% higher volume Increased customer density TWh/yr

15 Going forward - continued organic growth Network and Heat Markets Hafslund s operations located in areas with high population growth Oslo District heating, Oslo 15 Distribution grid Regional grid Hydro power plants Population growth

16 Hafslund a pure play utility