Q4 Highlights:

-Group net revenue of 372 NOKm and EBIT adj. of 28 NOKm. Volatile elspot prices
and customer migration led to losses on variable contracts in the Consumer
segment in the quarter 
-Solid customer growth in the quarter with more than 20,000 new deliveries in
the Consumer segment
-Continued strong performance in the Business segment, with all time high
pipeline into 2023
-Loss in the Nordic segment due to residual profile costs - significant YoY
improvement and in line with guidance from Q3
-Strategic cooperation with Telia on mobile customers - positively affecting
profitability
-Proposed dividend: NOK 1.50 per share


Losses due to volatile elspot prices and customer migration 

Elspot prices have been highly volatile in Norway in the quarter. This has been
especially notable in Central and Northern Norway, where supply conditions in
Sweden have led to an unprecedented price increase in December.

Pursuant to a regulatory change from 1 November, variable contracts have a
mandatory 30-day notification period for price increases. However, as customers
have no corresponding binding period, future delivery volumes have become less
predictable in phases with high price volatility and shifts in consumer
preferences. 

Elmera Group has assisted customers in migrating from variable to spot contracts
and has experienced a significant shift toward spot contracts in Q4. At
year-end, variable contract customers represent 11% of the Consumer segment,
down from approximately 27% at the beginning of Q4. 

In order to manage price risk in the variable contract portfolio, the Group
enters into forward contracts on parts of the estimated delivery volume. With
decreasing elspot prices through October and November, the value of the forward
contracts for the variable products these months was negative. Due to
significant product migration, the remaining variable contract volume was not
sufficient to absorb the negative impact from hedges. In addition, the rapidly
increasing prices in December has had a negative margin impact on the remaining
unhedged volumes on variable contracts.

The Group has stopped sale of variable contracts and have initiated a soft
phase-out strategy for the product. The reduction in the variable contract
portfolio through Q4 reduces the margin risk associated with the product
category going forward. 


Please find attached the quarterly report and quarterly presentation. 


Results Presentation: Time: 16 February 2023 at 08.00 CET 

The presentation will be webcasted live at: 
https://channel.royalcast.com/landingpage/hegnarmedia/20230216_4/

For further information, please contact: Morten A. W. Opdal, Head of Group
Accounting, Reporting and IR, +47 970 62 526