Elmera Group ASA (ELMRA) Earnings Call Transcript & Summary

Welcome, everyone, to Fjordkraft's Capital Markets Day 2021. My name is Morten Opdal, Investor Relations at Fjordkraft. And before we begin, I'd like to make a few comments on today's agenda and some practicalities. Due to the current situation, this event is a webcast-only. However, we encourage you to submit questions through the webcast player as there will be a Q&A section at the end of the presentation. Today, you will learn more about Fjordkraft, the industry, our strategic thinking and our ambitions for growth going forward. We will start off with a section from the CEO and Head of Strategy. Then we will have a short break, and then we will continue with the section from the Consumer segment, the Business segment, a section on Nordic expansion, and then we will go through our updated financial targets before the Q&A section. It's a pleasure for me to introduce our CEO, Rolf Barmen, who will start with this presentation.

Thank you, Morten, and welcome to this section of our Capital Markets Day presentation. Next page. First of all, let me introduce our group management team. Ole Johan Langenes, who you already have been introduced to, is our acting CFO as Birte Strander is on maternity leave. She will be back during this spring. Arnstein Flaskerud, Head of Strategy, M&A, Innovation and Regulatory Issues will follow after me presenting interesting topics within his area of responsibility. Christian Kalvenes, Head of Consumer, looks forward to presenting the Consumer segment. Roger Finnanger presents the Business segment. And Per Heiberg-Andersen, new to the management team, being responsible for heading up the Nordic expansion following the SME acquisition, will present our Nordic ambitions. Finally, Ole Johan presents our financial outlook for a period to come. The rest of our group management team consists of Alf-Kare Hjartnes, Head of Technology and Digitalization; Jeanne Tjomsland, Head of Group Marketing, Communication and HR; Solfrid Aase, Head of Service companies, including Alliance; and not to forget our Head of Operation, Solfrid Fluge Andersen. Next page, please. For those of you not very familiar with our business. Let me start by giving you an overview of our industry, followed by a swift introduction to our segments. The value chain of our sector is regulated in a way where the producer produce energy, the grid companies and monopolies, whose mission is to bring power from the production facilities through the grid system to the customers. And finally, us, the end-user companies, the retailers. We are the spearhead of the value chain, buying electricity to prices set daily on a Nord Pool power exchange and selling the electricity to end users. Every day, we forecast the electricity consumption of more than 1 million households and companies across the Nordics, we're around 900,000 in Norway. On an annual basis, we handle hundreds of millions of data transactions in the Fjordkraft Factory, up from a couple of millions of transactions a few years ago, a number increasing at an accelerating speed. In 2021, we will produce almost 10 million invoices, and we estimate to handle more than 750,000 inquiries from customers. We conduct around 2 million sales conversations and the entire Fjordkraft Group now employs more than 500 people. But even more important, through our product management, through our marketing activities and through our sales efforts, we create competition. And due to this, the switching rate in the Norwegian market has been increasing for many years, telling a story of a highly competitive market. We are present both in the Consumer segment as well as in the Business segment. Our overall market share is about 27% in Norway, and we are aiming at further growth, both in Norway, Sweden and Finland. For more than 20 years, we have also served smaller vertically integrated energy companies in Norway with services such as power trading and product management. As the Fjordkraft Factory turned out to be quite scalable, and the regulator announced that vertically-integrated companies must split their end-user customer base from their grid customer base, we saw an opportunity to launch an Extended Alliance concept, serving these companies with cost-efficient rating and billing system as well as front-end systems. We now serve 14 partners with billing and rating services, covering electricity as well as broadband and district heating, representing more than 80,000 customers. Before summer, we also have 17 partners and around 100,000 customers through our Extended Alliance concept. AllRate, our start-up from last year, offering rating and billing services to grid and retail companies is progressing well and in line with our expectations. Metzum, our software company, co-owned with Rieber & Son, is also progressing well with activities, both in Norway and Sweden. The software momentum is about to be one of the most used cloud-based billing and rating solutions within our industry in the Norwegian market. By the end of 2020, the Fjordkraft Group had a total of 132,000 mobile subscriptions and is the largest service provider in the Norwegian and telecom market. The subscriptions are distributed across the Fjordkraft brand and Gudbrandsdal Energi, and the group reached its targeted 125,000 subscriptions in Fjordkraft brand. Having launched the service to create loyalty through best prices for our electricity customers, positively affecting our churn rate. The next step now is to achieve profitability in this segment. Next page, please. We started the renewal of Fjordkraft in 2013. And during the year since then, we have experienced a very successful journey based on well-defined actions, optimization of product management, investment in top-of-mind and loyalty programs, investment in operational excellence and investment in sales resources. As you can see from the left-hand side of this slide, we have since listing back in 2018, continued on the path we set back in 2013 and continuously improved our performance, delivering strong year-on-year results both when it comes to net revenue growth, and profitability. Next page. There are more than 100 retailers in Norway, fierce competition. It's easy to switch supplier around 10 nationwide players, but mostly local and regional players, who, according to the regulator's latest reviews, have a market penetration on average of almost 70%. Last fall, we entered the Swedish and Finnish market. The markets in these countries are also very fragmented, representing a significant opportunity for consolidation. As we have said before, we believe that the degree of complexity for end-user companies will accelerate, making it more difficult to be profitable as a small player. Customer demands derived from digital development require investments, so does efficient processes. From our perspective, scale is a prerequisite to build a long-term winning player in our industry. The regulatory development is supporting consolidation and we are well positioned to take lead in consolidating the electricity retail market, both in Norway and in Sweden and in Finland. We have the financial firepower needed. And through the Fjordkraft Factory, we have the ability to integrate acquired companies and portfolios in a cost-efficient way. We also possess the strategic and managerial abilities to develop acquired companies in a positive way. Next page. Increased attention and focus on the environment and on business' carbon footprint are important to stop climate change. In Norway, we have been fortunate when it comes to the electricity market, as electricity production has been more or less 100% renewable for many years. Hydropower has been the main source of production. But the latest years, we are also seeing more and more wind power being installed, currently amounting to about 9% of Norway's total production. According to the forecast made by NVE, the Norwegian regulator, Europe is moving in the same direction, where wind and solar production is expected to increase by 200% over the next 20-or-so years. In the same time frame, coal power is expected to be nonexistent in development, accelerated by an expected increase in CO2 prices. Even though the exact figures are difficult to forecast, the direction of this transition is very clear. Next page, please. The Norwegian electricity market is fully integrated with the Nordics, and through this integration, the NorNed interconnection to the Netherlands and the NordLink interconnection to Germany, we are already a part of the European electricity market. Accordingly, the price level in Norway and in the Nordics is not set separately from prices elsewhere. But in the same way, the congestions in the grid lead to different prices between the domestic price areas, congestions between countries will still lead to different prices also in Europe. There are a lot of factors that decide the price level of electricity but there seems to be a consensus in the predictions that power prices from a baseline in 2019 will increase somewhat short-term, decrease midterm and then increase long term. There is also a consensus that prices in future will be more volatile. Stable production from nuclear in Sweden will be phased out as will mucking coal in Germany. This will be replaced with more volatile production as wind and solar. We have recently seen an expected steep increase in the electricity price in Norway. First and foremost, due to hydrology and temperature, but reinforced by new interconnections between countries, giving producers more flexibility in their decisions on how to optimize their profitability. As you can see from the charts, on the left-hand side, the level of the prices has not been decisive for how we operate. We have shown over many years that we cope with different price sentiments in a profitable way. Concluding that our business model is robust. Volatility, however, is assumed to be favorable to our business in the long term as the demand for risk mitigating products across all segments is increasing. Next page, please. As a retailer, we have to handle uncertainty, particularly when it comes to threats like weakened demand and margin contractions. But we also have to have risks when it comes to the power market. Mostly, we buy electricity to prices set on the power exchange in the day ahead market. Prices differ significantly each hour, depending on demand and offer and prices defer also regionally. Due to the grid congestions, we have several price areas or bidding zones, both in Norway and Sweden, resulting in the fact that cost of electricity can differ from price area to price area and from hour to hour. The overall effect depending on how our customer portfolio as well as our consumption is distributed, both regionally and throughout the day and night. Cost of electricity is, of course, the most important element of our total cost of goods sold, but our COGS also contains other important elements like cost of guarantees of origins, cost of electricity certificates, various trading fees and not to forget costs occurring due to mismatch in forecast and consumption, so-called balancing costs. How we handle all these elements constituting our total cost of goods sold, both in terms of purchasing strategies and operational excellence will affect our ability to improve our margins. Our risk tolerance, when it comes to purchasing strategy, is low, but exposure to volatility in various markets supports margin upside. What we have learned since introduction of the Elhub reporting or smart meters reading is that our customers' consumption is reported in a more accurate way. This, in turn, helps us make better consumption forecast and enable us, still within a low-risk framework, to further optimize our total COGS. Next page. Some comments on how we suppose the demand side will develop. According to the regulator, we can expect a stable and slightly increasing long-term demand and even more volatility due to increased production from volatile resources. Electrification of the transportation sector more than offsets the effect of improved energy efficiency within households and service industries. This is true for both Norway, Sweden and Finland. There is also a significant electrification of industrial production and petroleum sector and along with increased consumption from data centers, this represents a growth potential for our industry in the longer perspective. The consumer trend still quite weak here in Norway might lead to somewhat reduced electricity demand, but we assume if the trend picks up speed, that will be compensated by an increased demand for other services connected to consumer concepts that we can fulfill. Next page, please. This metric has been with us since long before we became a listed company. It tells basically what you need to know about our philosophy on how we value create our business. It is about maintaining and developing net revenue. It is about cost efficiency, and it is about new revenue streams, new business. The first line is about developing our net revenue by focusing on distribution, branding, top-class product management, top-class customer service, all to grow the number of customers and improve our ability to manage the price elasticity. In parallel, we work on the second line, cost efficiency, particularly seeing to that we accelerate effects from our investments in digitalization and automization by having a strong growth strategy, securing return on investment fast enough to be able to make necessary reinvestments. When it comes to the third line, developing new business, we have developed both mobile services and the Extended Alliance concept. We have launched our domestic solar production concept as well as home charging stations. And we have also launched our Smart informator application, which we continuously improve through updates almost every month. We have taken ownership in 2 startups, utilizing assets that we have developed in the Fjordkraft Factory as well as utilizing the competence we have about the marketplace, particularly capitalizing on our relations in the entire value chain. Regarding geographic expansion to Sweden and Finland, this was a natural step for us to take once we completed the acquisition of Innlandskraft, became the largest player in Norway. Per Heiberg-Andersen will introduce you to our ambitions in the Nordics later in our program. Next page. The acquisitions we made last year were important for us, not only because they expanded our market share and brought us into new geographical markets but particularly the acquisition of Gudbrandsdal Energi was important in a brand perspective. Long before the acquisition, we acknowledged that the group needed more than just a Fjordkraft brand to realize our long-term growth targets. From before, we had TrondelagKraft brand, a regional brand established in the back of a TEM transaction in 2018. Through the acquisitions, we now have 3 additional brands. Gudbrandsdal Energi will continue to exist as a national fighting brand in Norway, while Eidsiva Energi will be rebranded to Fjordkraft. Nordic Green Energy is the brand in our Swedish and Finnish operations, and we will consider our brand strategy outside Norway during 2021. Next page. As I stated in a couple of slides ago, we believe in scale, both digitalization and an accelerating number of transactions to be processed, requires investments. To secure return on investment fast enough to be able to make necessary reinvestments, players in this industry need to increase the number of customers served. So when it comes to our road map for growth, we are targeting a long-term 35% market share in Norway. This corresponds to about 1.2 million electricity deliveries. We have ambitions to grow organically, but a significant part of the growth is expected to come from acquisitions. In Sweden and Finland, we see great potential for consolidation. And our first goal is to become a top 4 player in these markets within the end of 2023, first and foremost from M&A activities. When it comes to our Mobile business, this year's main focus is to reach profitability with further growth built on this profitability. The ambitions for our service company vertical, comprising Alliance, AllRate and Metzum all cause further organic growth. Next page. When it comes to our climate action efforts and our Klimanjaro initiative, we have strengthened our team by employing a sustainability manager, Mette Nygaard Havre. Her main task is to drive our efforts when it comes to climate change, both for establishing Klimahub, but also when it comes to continuously to improve our key performance indexes within the ESG area. The Klimanjaro initiative has inspired our Business segment to promote carbon reducing solutions. Roger will introduce you to our efforts when it comes to offering solutions, reducing our customers' carbon footprint in his section, both in terms of local production as well as reduced consumption of energy. Next page. To summarize my presentation, I will go through our revised investment highlights. We have adapted them slightly for the new Nordic context however, the key message is still the same. We operate in the attractive Nordic electricity retail market with a stable demand profile. The regulatory environment demand, mostly driven from EU where there are energy packages, is leveling the playing field and it's been beneficial to pure retail players rather than the incumbent vertically-integrated players. We have a proven business model, providing need to have electricity, combined with sought after value-added services, supporting differentiation and margin robustness. Through our acquisitions, we now have a diversified multi-brand strategy with Fjordkraft as a spearhead and the #1 retail brand in Norway. Our platform for distribution and digital ecosystem is unmatched and provides the best-in-class service offering to consumer and business customers. And we have strong competitive advantages and a robust platform for further organic and bolt-on acquisition-driven growth across the Nordics. And finally, we have an attractive financial profile with a high cash conversion and limited capital expenditure requirements. Thank you very much. Now please welcome on Arnstein Flaskerud.

Thank you, Rolf, and hello, everyone. My main goal in this section is to present our view on the regulatory drivers and how they develop in the green shift. I will also cover the importance of staying closest to the customer and develop our core business in parallel with looking at new growth areas and finally, you will hear more about why we believe that the market is even more ready for consolidation. Next page. There you can see the traditional value chain with power producers, grid companies, power exchange, electricity retailers and the customers in the center. We experience that the green shift is challenging every part of the value chain driven by climate change and digitalization. And at the same time, electricity is a central part of the solution due to the fact that there is a change from fossil energy to renewable electricity. In this green zone, new business opportunities related to local production, energy management and storage of electricity are emerging. And we now see attractive possibilities connected to digital user experience, both in the consumer and the business market. And Fjordkraft has, during the last few years, taken a clear role closest to the customer and increased innovation focus in the user interface. And both in consumer and in the business market, we are now developing customers to benefit from the new possibilities in the green shift. Next page. Fjordkraft will also consider different collaboration models with a role in the value chain and the business models support industrial corporation, and this also includes developing our business models and we are now developing platform business models in parallel with all line of business models. Christian and Roger will come back to that later. And timing is crucial when entering new markets. And the most important factors to optimize timing or technological maturity and the changes in regulation. And that leads me over to the topic of regulations. Next page. We are still facing substantial regulatory changes as a response to the need for more innovation, cost-efficient grid development and fair competition. I will now focus on the Norwegian electricity market and the mobile market, while Per will introduce you to regulatory matters in Sweden and Finland. Next page. The unbundling of vertically-integrated companies has accelerated during 2020. And especially in Norway, we have seen unbundling of vertically-integrated companies and separation of the end-user business model and monopoly part of the companies. The last couple of years, we have also experienced a digitalization of this industry. The smart meters and Elhub in Norway have provided more accurate consumption data with higher granularity and more streamlined processes between all the players. The clean energy package also referred to as a winter package, is the fourth energy package in EU and the goal of the package is to pave way for a gradual transition from fossil fuels towards a carbon-neutral economy. And the package supports the EU targets for 2030, and the most important elements for Fjordkraft are the energy performance in building directive, the energy efficiency directive and the electricity directive with consumer empowerment and protection and electricity regulations, which ensures a well-functioning wholesale electricity market. Next page. This is a very important page explaining the ongoing and upcoming regulatory changes. At the left, we have listed the main changes going on right now. The regulation requires vertically-integrated companies to separate from the grid company and the retail business in several ways. This materialized in split of ICT infrastructure, separate companies and a split of functions. However, the functional split does not apply to companies with less than 10,000 deliveries, comprising around 50 smaller vertically integrated companies in Norway. And all the unbundling the last years has led to increased competition, more complexity and has been fueling the market consolidation and uptake of concepts like the Extended Alliance concept that we offer. At the right, you see the expected changes in 2022 and 2023. And at the start of 2022, the requirement of brand unbundling is applicable. And that means that the integrated players can no longer use the same brand on the grid company and the retail company. The regulator has changed its view on mandatory power tariffs and allows different approaches including time of use models also to the consumer market. And all in all, unbundling is the game changer, which levels the playing field, leading to a tougher competitive climate and even more need for scale to be an efficient market player. Next page. On the 27th of January 2021, the Association of Energy Companies in Norway, Energi Norge and Distriktsenergi introduced a quality assurance certification model for electricity retailers in the Norwegian market named Trygg Stromhandel, safe electricity purchase, in English. We support the initiative and have sent our application to be certified. And we certainly believe Trygg Stromhandel will be beneficial to both the consumer as well as to the retailers. The certificate quotes that the market participants fulfill requirements to transparency, securing a level playing field. And both the certification process and further following of processes will be governed by DNV GL, which also governs the Swedish equivalent certification called Schysst elhandel. Next page. We will now take a short look at the mobile market, where Fjordkraft has been present since April 2017. There are 2 big players. Telenor and Telia with several sub-brands, and they are present in the whole value chain and are here being attacked by Ice who are also own their own mobile network. They're also being attacked by a handful of service providers, including Fjordkraft. Telenor are regulated, and they must give access to their mobile network and to offer non-discriminating prices and technology to the other players. And today, the regulator is conducting margin squeeze tests biannually to evaluate Telenor's pricing, and this has led to several price reductions to our wholesale procurement. But the rules are still unbalanced, highly favoring the network operators. The regulator ANCOM has during 2020, stated new market regulations, but the process of implementation is complex and slow. There are some upcoming important changes that I would like to highlight. The modeling player size in the margin squeeze test is reduced from 5% to 3% market share. And Telenor will be mandated to provide both linear price models and bulk price models. And the changes are expected to give the service provider a better range of tools to innovate and give the customers better solutions. And in total, leading to more robust service provider business models. All 3 mobile network operators are filing against the new regulations and have made formal complaints to the department trying to uphold their competitive advantage given by the regulations. Fjordkraft has also made a formal complaint, aiming to reduce Telenor's freedom to define the access price model and thereby, avoiding some of the intended effects on the regulations. The process of evaluating the complaints is ongoing and might last for another couple of months until the verdict is clear. And Christian will tell you more about how we adapt to the new regulations. Next page. Then it's time to move from regulations to our M&A agenda. I will focus on both our ambitions and our opportunities. And you will learn more about the prospects, the drivers and our road map to growth. Next page. First, a brief look at 2020 and the most important transaction last year. We have overperformed substantially regarding our M&A goals for 2022. We succeeded in realizing attractive transactions, both in Norway and in Sweden and Finland. And by acquiring Innlandskraft with the brands Eidsiva Energi and Gudbrandsdal Energi, with around 240,000 customers, Fjordkraft became the largest electricity retailer in Norway. And at the same time, we became the owner of the most popular fighting brand in Norway, Gudbrandsdal Energi. And by acquiring SNG with a brand Nordic Green Energy with 165,000 customers, we became a true Nordic player with a good position for further growth in Sweden and Finland. And by completing these 2 transactions, our current road map related to M&A is fulfilled. And I will come back to our new goals in a few moments. Next page. We consider Norway, Sweden and Finland, the most attractive electricity markets in the Nordics. This chart illustrates the main players in the 3 markets. As you can see, all markets are fragmented, and the illustration also implies that the consolidation in Norway leads the way. All markets have the same structure with a few large players, some medium players and many small players. In Norway, 2 players share around 50% of the market. While in Sweden and Finland, between 4 and 5 players share around 50% of the market. All 3 markets are fragmented and are facing further consolidation. And we also observed that the markets are becoming more similar, and the competition becomes increasingly pan-Nordic, and Per will give you a deeper understanding of the Swedish and the Finnish market, and our further growth plans outside Norway. Next. A few comments on the most important drivers to consolidation. First, regulatory changes, which we have addressed in the previous part. The merging of great companies and whole groups. These both support a more horizontal structure in the sector and the consolidation might lead to divestment of the retail part of the business. Intensified competition is driving costs in most processes. And this will lead to higher churn, which erodes the incumbents' local market shares and forces them out of their protected home markets. The incumbents are facing a more challenging stand-alone setup at all levels, no longer having the opportunity to lean on the monopoly part of the group. And last but not least, technological development and customer expectations are changing the whole value chain and the customer offerings. The incumbents are facing an increasing technological depth due to the digitalization of all processes in addition to changes in the customer interface and value-added services competition. And all in all, these driving forces increases costs per customer at an accelerating speed for all the players. The increasing competition and increasing costs will lead to margin pressure and scale challenges. Next page. Our M&A ambitions are significant also for the next couple of years. Now focusing on Sweden and Finland in addition to Norway. And I would like to highlight important reasons for us to be the consolidator. Number one, our system and process architecture, the Fjordkraft Factory and platform has, over the last years, proven significant scale and synergy effects in Norway. And we also observed great scaling potential in Sweden and Finland. Number two, Fjordkraft has grown to an attractive industrial partner, having provided scale to industrial partnership for many years. And number three, in addition to our high cash conversion and debt capacity, we also have listed shares as an opportunity, particularly if this is a requirement from the seller. This was the case in the Innlandskraft transaction where Gudbrandsdal Energi were paid in shares, thus staying exposed to the retail part of the value chain. And regarding the valuation, we have learned that customer value can deviate substantially among deals due to variation in EBIT per customer, churn rates, potential cost synergies and an effect on the competitive landscape. On the right, we have highlighted the typical cost synergies and even though all the steps in the process are important, the realization of the synergies is a key factor, both by securing the value creation and by serving as an important input to upcoming cases and their valuation processes. And when it comes to growth in a longer perspective, we must be both aggressive and patient. And we will only close deals that are at an acceptable price level for us. Next page. Then I would like to summarize the main points from this presentation. Number one, we expect that our M&A activities will fulfill a major part of our road map to growth, now also approaching Sweden and Finland. And we are both aggressive and patient. Number two, the EU regulations in the electricity market are supporting Fjordkraft's growth strategy, although it takes longer in Sweden and Finland. Number three, the electricity market in Norway, Sweden and Finland are highly fragmented and provides a substantial number of attractive prospects. And number four, Fjordkraft has the ambitions and experience to consolidate. M&A represent a fundamental part of our business growth and fuels our possibility to further expansion in the Nordic. And it's also important to highlight that our road map to growth, it is ambitious, but realistic. And we will work hard every day to fulfill our M&A goals. Thank you. [Break]

Hello, everybody. My name is Christian. I'm Head of Consumer, and I will now give you a closer look at Fjordkraft Consumer. Next page. The Consumer segment comprises of energy sales to private households across Norway. Fjordkraft has a nationwide presence and a leading market position. After the Fjordkraft Group's acquisition of Eidsiva Marked and Gudbrandsdal Energi last summer, we now have a new stronghold at Innlandskraft. Innlandskraft is great add-on to our other strongholds in Norway, that is Trondelag, Oslo, Southland, the West Coast and the region in and around Telemark and Vestfold. At Innlandskraft, Fjordkraft Group operate the brand, Gudbrandsdal Energi, and Trondelag, the brand TrondelagKraft, which was created after the acquisition of TronderEnergi Marked in 2018. While TrondelagKraft operates regionally, Gudbrandsdal Energi has a nationwide approach when trying to attract customers. Fjordkraft, TrondelagKraft and Gudbrandsdal Energi target consumers with an attractive offering that includes a fine menu of value-adding services and a strong focus on customer experience. To the upper right, we see that Fjordkraft has a leading market position as a recognized brand, which is proven by various consumer service. In the Consumer segment, Fjordkraft is the largest and most well-known electricity retail brand. Winner of Norway's best customer service at Kantar's Customer Service Days. This study includes answer for more than 20,000 customers across brands. Win of Bearing point's Digital Leader award. And we have a broad product range with value-added services and industry-leading loyalty program. And in the brand, Gudbrandsdal Energi, the Fjordkraft Group has a strong fighting brand with industry-leading customer satisfaction. The key numbers at the bottom of the page shows the Consumer segment's importance to Fjordkraft. Fjordkraft's Consumer segment is contributing with about NOK 1.1 billion in net revenue; 755,000 electricity deliveries; 8 terawatt hours delivered volume. Fjordkraft's total market share in the Consumer segment exceeds 28% in Norway. Next slide. Broad core product offering, differentiating value-added services enable a market-leading value proposition. The spot price product follows the spot price on Nord Pool in each of the 5 different price zones across Norway. This can lead to large price variation during the month and even throughout the day. The customers are fully exposed to the spot price volatility. For Fjordkraft, the spot price product had a fixed nominal markup, representing no price risk. Now moving down to the standard variable price product. They have a 14 days notification period for price changes. For the customer, prices are more stable, more predictable, and are announced in advance. The standard variable price product offer 1 price across Norway, independent of price zones. It protects the customers from intraday price volatility. Volatility between price zones and rapid increase of the spot price. With the introduction of more wind in the power mix, we will have an increase of intraday and intra-week price volatility and in the years to come. Some standard variable products also come with price ceilings to offer consumer more predictability and peace of mind in that private economy. For Fjordkraft, this product represents a short-term price risk within the notification period. However, this product offers margin opportunities on the back of price volatility, though it might be difficult to foresee timing and magnitude. These products cover different consumer needs with a broad offering of tailor-made price plans. We believe that a balance split gives us the right balance between risk and profitability due to the market's volatility. Now moving over to the right. We target consumers with an attractive and differentiated offering that includes a fine menu of electricity supply price plans, matching varying consumer preferences. Attractive add-ons to price plants such as price matching, competitive guarantees and loyalty bonuses. An attractive benefit program in cooperation with external partners. And a great menu of value-added services, including affinity, insurance, flexible payment solutions, guarantees of origin, solar panels with sun account, home chargers and smart charging. These value-adding services expand our margins. Next slide. The battle for customers. I will now give you a quick look into the competition among electricity service providers. Traditionally, the value proposition has been spearheaded by 2 main assets that is price and local affiliation the national players are mainly focused on price, where the local and regional players are more focused on local affiliation as they target consumers within their local areas. Due to the rise of smartphones and the digitalization of private households and society in general, customer experience has emerged as an important part of the value proposition spearhead to attract and retain customers across most service industries. Competition intensity, when it comes down to value proposition is now split between 3 areas rather than 2: who can offer the best value for money; who can say that they are local or that they, in some way, support your local community; who can offer the best digital customer experience to empower the customers with self-service insights and tools. If we look ahead, we believe that competition intensity will continue, and the customer experience will make a massive impact in the battle for customers. Now moving down to the next slide. Digital ecosystem offers unique customer experience. We believe that if you have -- if you are to create unique and great customer experience as a competitive advantage with having such a broad menu of products and services as we do, you need more than just a home page or an app. You need a whole digital ecosystem. Our digital ecosystem has a fine menu of apps and websites serving specific roles and solving specific tasks for our customers. This includes the Fjordkraft app, Fjordkraft.no, My Page, the Fjordkraft Marketplace and the EV charging app. Our digital ecosystem serves as a digital department store where customers can move in and out of the different interfaces to solve their tasks, whether they want to view the monthly benefits, check their electricity usage, buy products from the marketplace, check for nearby EV charging stations or connect both products to the app. Digital ecosystem also contributes positives on important business KPIs like sales, churn, customer satisfaction and income. Next slide. New digital services embraced by our customers. Customers using the Fjordkraft app can use the best services that the Fjordkraft universe has to offer. During 2020, we released more than 30 app updates to push forward innovation to new and better services. These new digital services, easy-to-use app and captivating interface has been embraced by our customers. In 2020, the app had a total of 180,000 users. This includes hundreds of downloads every day. Tens of thousands of users every week. Cost efficiency through scale and numbers of users are of great importance. It's harder to invest heavily in developing a competitive digital ecosystem, the fewer customers you have got. This is a numbers game. The return on investment stems from reduced churn, new revenue streams and higher customer satisfaction. The more customers you have got, the more value you create. The app has a positive impact on both churn and customer satisfaction as insights from our analytics shows that customers using the app have a significantly lower churn rate. The highly rated Appsee study also shows that customers using the app have a significantly higher customer satisfaction. Next slide, digital services empowering customers. During 2020, we have given our customers access quick and easy overview of electricity consumption, solar energy production, mobile data usage and customer benefits. We've set up smart and easy-to-use services for overview and control with the charging of electrical vehicles. We have also smart home functionality, the Netatmo weather station, Kewpump and Dimplex heater proved to be very popular in 2020. These services all help customers to a more friction-free daily life. So what kind of services can we expect in 2021? Well, first and foremost, we are looking for services that eliminates customer friction and adds customer value through innovation and smartness. We will be adding more services and insights into the concepts, My Home, we'll be adding more electrical vehicle brands and chargers to connect smart charging services. And we will shortly be adding Fjordkraft pulse. This unit can be connected into the smart meter in-house. Customers using the pulse unit will get real-time data of electricity usage straight into the Fjordkraft app. We'll be able to create services like showing a breakdown of the electricity usage per unit or per unit group to give even more insights to our customers. The Fjordkraft pulse and these value-adding services are the output of an Enova-funded project that we have been running for a couple of years. As we closed down the Enova project, some of the best services will be commercialized in a Fjordkraft app. The app is a great way to fast track these and other learnings from the Enova project to our customers. When it comes to choice of network, we will be using the mobile network, LTE-M, instead of Wi-Fi. This give our customers better and more stable connection as the smart meters often allocated far away from the Wi-Fi router. More services will surely follow. With the Fjordkraft app, we put ourselves in a great position to develop and launch more attractive products and services as new customer demands appear. Next page, digital marketplace launched on the 18th of January. The Fjordkraft marketplace was launched about a month ago. The marketplace is based upon a platform business model. We are offering quality goods from quality third-party vendors. We have created an attractive distribution channel for our partners, and at the same time, we keep our position as an intangible service provider. The demand for household appliances and gadgets that can be connected and controlled has increased along with the adoption of IoT in consumer's homes. The products offered through the marketplace will be products that complement and strengthen our core value proposition. This can be mobile phones, solar panels, home chargers, and smart products for home and travel. With this approach, we can focus on making services in the Fjordkraft app that enrich the vendors' products and our customers' usage of those products. In this way, we enhance each other's value proposition and the customers' experience and value for money. With the introduction of the marketplace, Fjordkraft will gain new revenue streams and reduce customer churn. An example of a new revenue stream can be commissioned per all the solar in the marketplace. And financing solutions instead of cash settlement have a proven record of reducing customer churn and are, of course, an available service. We believe that the Fjordkraft marketplace will play an important part in the development our digital ecosystem. The marketplace target in net revenue between NOK 50 million and NOK 70 million in 2021. Next page. Perfectly positioned for creating great customer experience and extensive customer value. There is fierce competition in the market. A lot of competing brands offer some of the same products and services as we do. But we believe that no other electricity service provider offers such a broad and attractive value proposition as we do. To succeed in a digital age, you need best and most attractive partners to create value for the customers. Our brand strength, distribution power and customer base are great assets and make us an attractive partner. But how do our broad range of services create value for our customers. Firstly, we have a favorable offering on our close to core products. These value for money services spanning from favorable subscriptions for solar production and electrical vehicle home charging to price match and risk mitigating products like price ceilings. This winter alone, customers holding price ceiling product have saved thousands of krones. Service shows that value for money is one of the strongest associations with the Fjordkraft brand. Secondly, let's talk about mobile. Our mobile subscription offering includes favorable prices for any customers but also holds a Fjordkraft electricity subscription. The favorable prices apply to the whole household. We see that the customers also holding a Fjordkraft mobile subscription have a significantly lower churn rate and a higher customer satisfaction rate. As I said earlier, our digital ecosystem has been embraced by our customers with innovative easy-to-use services, the app is empowering users to take control of any service available within the Fjordkraft digital universe 24/7. And again, we see the customers using the app at a significantly lower churn rate and a higher customer satisfaction rate. For the second year running, our customer service became the winner of Kantar's highly rated Customer Service Days. Our figures also show that our customer service has a positive impact on customer satisfaction. And finally, we offer a wide range of customer benefits, spanning from restaurant deals to discounts at top-quality retailers and digital health care. The benefits are very popular among our customers, and we see a steep rise in app traffic on the day the monthly benefits are updated. The Appsee study shows that customers using the benefits have a significantly higher customer satisfaction rate. Next page, going over to mobile. The number 1 service provider for mobile phone connectivity in the consumer market. The Mobile business area comprises of mobile phone connectivity sales to consumers across Norway and are part of the new growth initiatives segment. The market consists of 3 MNOs, that is mobile network operators, 2 MNO fighting brands and several service providers, including Fjordkraft. The Fjordkraft Group has a total of 132,000 mobile subscriptions at the end of 2020. And is the largest service provider in the Norwegian telecom market. The subscriptions are distributed across the Fjordkraft brand and Gudbrandsdal Energi, and the group reached its targeted 120,000 subscriptions in the Fjordkraft brand by year-end 2020. The market is basically a duopoly with Telenor and Telia, keeping massive market shares between them. But even in a market with such competitive challenges, Fjordkraft has made a massive impact. We are the largest service provider with more than 132,000 subscriptions. We have got highly attractive and competitive pricing on all data plans. We have an award-winning customer service, and we have newly launched the marketplace selling favorable price used mobile phones. Financially, we target stand-alone profitability and a positive run rate EBIT by the end of 2021. The profitability in the mobile business have been negatively affected by, inter alia, COVID-19 in 2020. But we have a positive outlook for this part of our business for 2021. We still believe that creating growth with an attractive and competitive offering and creating loyalty through beneficial and value-added services will be of great importance for creating profitability. We believe that offering mobile phones and gadgets with flexible payment solutions at the Fjordkraft marketplace will play an important part in both growth and profitability. The same goes for value-adding services like ID-security. More than 10% of our mobile subscribers are now subscribing on the ID-security service. Next page. The Consumer segment with clear competitive advantages ready to capitalize on digitalization. I will now finalize my presentation with these 4 key success factors for the consumer segment. We are the largest player in the Norwegian consumer market. Supplemented by both a strong fighting brand and a regional brand. We have a broad product range with value-added services and an industry-leading loyalty program. We have a digital ecosystem that offers a unique customer experience. We are the number 1 service provider for mobile phone connectivity in the consumer market, adding loyalty to the customer base. Thank you.

Hi, my name is Roger. I am Head of Business, and I will give you a closer look at the Business segment. Next page. Fjordkraft has a strong position with our 105,000 deliveries and more than 45,000 business customers. We have a leading brand position with 97% awareness and the highest top-of-mind in the industry. We're measured to be the most attractive supplier in the Business segment. And Business customers have a higher consumption and more complex products to which the customers are willing to pay for. Therefore, we have a higher net revenue per delivery compared to consumer segments. Our net revenue is around NOK 375 million, and our market share in Norway exceeds 20% in the Business segment according to the regulator. Our portfolio is highly diversified. We recognize that different customers need different solutions, and we are targeting specific segments of the market with a wide range of products designed to meet their needs. In our portfolio, we handle more than 2,500 co-ownerships. In this segment, we can deliver cost-efficient heating solutions and we offer electrical vehicle charging and administration. We have a close cooperation with our national organizational chains and procurement corporations. This increases our efficiency and our hit rate in our sales channels, it also strengthens loyalty. We have dedicated resources working towards the construction industry. The construction industry needs to electrify its activities. They also need digital solutions to deal with a large number of deliveries. We offer digital solutions to manage relocations of the customers' deliveries. We see that an increasing share of business customers are tenants. We put a lot of our effort in developing sustainable solutions that makes it as for the owners of corporate properties to reduce emissions by implementing new energy sources. This will give us the opportunity to offer services to tenants and to increase our share of wallet. Fjordkraft is the largest supplier to municipalities, and we are targeting the segment, agriculture and aquaculture. These customers have a great need for sustainable solutions that reduce their emissions. Next page. There are almost 20 national players in total. Fjordkraft, along with 2 other competitors, are the only ones operating the entire business segment, which includes small office, home office, SMEs, large customers and public entities. This is a strength for us, and it contributes to our awareness and our position as a professional player. Most national players are putting their effort into the SME market and there are only 2 of our national competitors that are not operating in this segment. Fjordkraft believes that the reason for this is that there are lower entry barriers in the market. And that the terms and conditions to a small degree are controlled by regulations. This gives room for lock-in periods and prepayments. Our biggest competitive advantage is our distribution power and our national presence with sales offices business in Trondheim, Oslo, Sandefjord, Bergen, Stavanger, Hamar and Sortland. Our presence does reflect a segmented and national commitment. We have 5 teams in telemarketing, handling the smaller customers. 30% of our sales are from our external partners in the SOHO segment. This gives us the flexibility and opportunity to quickly respond in market with high activity. We reached the medium customers through traditional sales activities. We have sales representatives all over the country, booking meetings and visiting the customers to give counseling at their location. The small and medium customers are served with standardized products and all customers are offered our digital reporting solution Min Bedrift. Our portfolio team serving existing customers focusing on follow-up meetings and selling value-adding services. Our growth through the acquisition of Innlandskraft gives us even more opportunities to offer our wide range of services. We have a dedicated team handling our large customers and public entities. These customers demand the tailored solutions that handle all risk associated with purchasing electricity. The advisers are conducting follow-up meeting, and we are seeing higher revenue, loyalty and customer satisfaction when the customers use more of our services. We are making money in the tender market, but the price pressure is considerably tougher. If a public entity leaves us or joins us, it has a limited impact on the total profitability of the business segments. Public entities represents no counter-party risk for Fjordkraft, and Fjordkraft does not deliver to power intensive industries. There are more than 80 sales resources, which sells for Fjordkraft in the B2B market every day. Let's go to next page. Fjordkraft offers a wide range of products designed to meet every business customers needs. And according to the latest market research, the customers respond that we offer more value for the money compared to the other national players. They are also measured to have the most satisfied customers. Our product range includes spot for products for those who can handle price volatility and variable products for the ones who need more price stability as in the Consumer segments. Our main product is spot, including risk management. Many of the business customers have a great need for predictable power costs. Therefore, the issues electricity plans that includes risk management. This moderates price locations and help customers manage their cost budgets. More than 50% of our deliveries in the B2B segment are deliveries with risk management. We also offer bilateral agreements such as area price hedging and options. There is a higher loyalty and satisfaction from the customers that have electricity plans that includes risk management in combination with other value-adding services. Volatility fuels spot with risk management and variable products, and our additional services gives our customer more than just an electricity product. We believe that focusing on such products will increase customer satisfaction and our profitability. Fjordkraft has a very low-risk associated with risk management products because the customers fully own their positions. Value-earning services will become more important to differentiate us from our competitors and to attract new customers through our online customer portal, Min Bedrift, we offer all our customers, reports on consumption, comparison of consumption with temperature, cost reports, price forecast and risk management reports. We also offer our customers a climate reporting tool that using the greenhouse gas protocol standard. Our customers receive a weekly market update in Min Bedrift. This gives them the information they need to make a sensible decision about their electricity risk profile. We experienced improved loyalty from those of our customers who take advantage of our energy consulting and energy efficiency programs. I will comment on our concepts that reduce emissions later in my presentation. Next page. Klimanjaro is the name of our sustainability initiative. In 2016, we made demands to all our suppliers and partners that in 2019, they all had to be climate neutral if they want to work with us. This policy is still active, and all our suppliers and partners are climate neutral. This initiative was recognized as a momentum of change lighthouse activity by the UN in 2018. We are experiencing that companies want to copy this initiative. Some have already implemented it. And Fjordkraft assist those who want to copy Klimanjaro. In 2019, we launched climate Hub. Climate Hub is a free service, where the goal is for companies to get control of their emissions, get control of their supply chain emissions, show their CO2 emissions and inform which measures they are taking to reduce their emissions. climate Hub follows the greenhouse gas protocol for climate accounting, scope 1, 2 and 3. It also offers to buy carbon credits. We have implemented functionality that helps companies engage in the Klimanjaro initiative in climate Hub. To further increase our impact, we will now measure the CO2 emissions reduced by our products and services. Every sales represented has an individual budget of emission reduction. With the use of our portfolio client smart and guarantees of origin, we will be able to cut the emissions from our customers substantially. Next page. High awareness, wide distribution power and a large customer portfolio make Fjordkraft as an attractive partner. This position made it possible to transition from supplier to an energy partner and release several services in 2020. We have released concepts within local energy sources that helps our customers reduce their carbon footprint. We observed that the engagement for climate change fuels the willingness to invest in new technology and new energy sources. Fjordkraft will take lead in bringing new solutions to our customers through sustainable business models. In 2020, we launched local energy solutions in the form of solar panel offerings and heat pumps, named Soleklart and Energismart. We offer our customers solar panel and heat pumps in the form of energy as a service. With our partners, we offer the customer a power purchase agreement. Our partners take the investment, install and produce energy on the customer side. Fjordkraft offers the customer a long-term agreement, which gives Fjordkraft, our partners and the customer a low-risk and a high degree of predictability. The customer will get a better certification of the building, reduced emissions and predictable power costs. We experienced longer and more complex decision-making process. After an extraordinary year with restrictions, we are in process with several large players in the real estate industry, and we have signed our first agreement and received good feedback on our concepts, offering local energy sources. Next page. In the end of 2020, we launched Ladesmart. Ladesmart helps co-ownerships and businesses to offer fair charging, easy administration of electrical vehicle. Ladesmart gives Fjordkraft a unique opportunity to reach residents in co-ownerships and our employees of our business customers with several services from Fjordkraft. The acquisition of Innlandskraft gave us access to a dedicated team with expertise within solar panels, heat pumps and charging. This year, we will establish a market impact team that will decrease time to market. We want to make it easy for the customers to choose new sustainable solutions. Commercial buildings will use several energy sources and local energy production that reduce their emissions. Therefore, we have launched Malbart, an energy management system that gives a complete overview of what and how they use energy from different sources, such as electricity, gas, district heating, solar and water consumption. In order to reduce the consumption and emissions, we believe that the user must be financially responsible for all energy costs. Our system provides control of the tenant's consumption and offers correct distribution of all energy costs. During 2021, Fjordkraft will offer billing services to tenants on behalf of the real estate owners, including several different energy sources. Our new product portfolio called Climate Smart includes all these products, and we will continue to expand the portfolio with new products that help our customers reduce their emission. Next page. Last year, we established a collaboration that made it possible to compete for customers who require deliveries in both Norway and Sweden. We signed our first cross-border customers last year. Through the acquisition of Switch Nordic Green, we will be able to offer deliveries in Finland as well. In the segments, real estate, industry and commercial chains, we experienced that Nordic deliveries often are a requirement. We will be able to deliver all our services within physical power supply and risk management in these 3 markets during 2021. We noticed that customers demanding deliveries in Finland often demands deliveries in Denmark as well. Therefore, we will seek to establish a partner for deliveries in Denmark during this year. Next page. To summarize my presentation, in the latest years, we have increased our sales resources, invested in high awareness and strengthened our position as a national player. In 2020, we expanded our product range, including several sustainable energy solutions, and the customers rate us to offer more value for money compared to our competitors. A large customer portfolio and a leading market position makes Fjordkraft an attractive partner for new sustainable solutions. Fjordkraft will continue to take lead in bringing new solutions to our customers through sustainable business models. We will use our firepower to accelerate the green shift in the business markets. We have transitioned from an electricity supplier to an energy partner with value-adding services that reduce our customers' emissions. This attracts an even larger share of business customers. Focusing on M&A activities and becoming a pan-Nordic retailer, enables new opportunities for further growth within both our core offerings and Climate Smart services. Fjordkraft is well organized and positioned for further growth in the Business segment. Thank you.

Thank you. May I start by introducing myself. My name is Per Heiberg-Andersen, and I'm responsible for Fjordkraft Nordic expansion and our fighting brand in Norway, Gudbrandsdal Energi. In this presentation, I will give you an introduction to the Swedish and Finnish markets and how we view Fjordkraft's opportunities for growth. But let me start by giving you a snapshot of our new acquisition in Nordic Green Energy. Let's go to the next slide. Last November 10, we completed the transaction and acquired the Swedish Finnish electricity retailer Switch Nordic Green AB, which is using the market brand, Nordic Green Energy. It's a company with offices in Stockholm, Sweden and Vaasa, Finland. Nordic Green has about 165,000 customers in Sweden and Finland combined. And it's primarily consumer and SME-focused. The company is positioned as a retailer of renewable energy, which is naturally a good bit with Fjordkraft's ambition to drive carbon neutrality. Nordic Green is a clear challenger and a fighting brand, and we believe it's a good engine for growth. The company has a strong management team with a total of 30 years industry experience. And the shared operations division is based in Vaasa. In 2020, the company had a net revenue of approximately NOK 100 million and delivered an annual volume of 3.3 terawatt hours. Also during 2020, the number of electricity deliveries grew by 8%, all organically. Next, I will look at the similarities in the Nordic marketplace that may allow for synergies, as well as some differences that may call for a more local approach. This followed by a quick look at the regulatory landscape. So let's go to the next slide. So in this slide, I would like to compare Sweden and Finland combined to our Norwegian home market, well aware that these are, of course, 2 markets with important differences, too. As to similarities, I would like to highlight the common EU regulatory framework, which we believe, over time, will make the market dynamics more homogenous across the Nordics. Furthermore, we share common energy market exchanges as Nord Pool and NASDAQ, enabling pan-Nordic power purchase. There are further similarities such as consumer behavior, and technology adoption as well as growing a growing interest in pan-Nordic one-stop shopping in the Business segment. These are all similarities that should create potential for synergies over time and drivers for consolidation as well. At the same time, we need to both respect and address important differences. The 3 pies in the bottom right corner illustrate that the Norwegian energy mix is an exception with hydropower totally dominating. Sweden and Finland, both have more differentiated energy mix, which creates a possibility for a challenger to position itself as a vendor of pure renewable energy, of which Nordic Green is one example. There are also important differences in product offerings. The product mix is dominated by fixed price products along the contracts, whereas in Norway, spot price of variable priced products are most common. As the data hubs are not yet established, we also see differences in the business processes as well as differences in market dynamics. Vertically integrated companies are common, and they have relatively strong positions in regional and local markets. We believe that all competition is local, and thus, we will build and develop local competence and organizations that know their respective markets, and at the same time, can understand and be able to realize the potential represented by the Fjordkraft platform. We need to cope with all these differences as well as differences in language and culture, especially in our M&A agenda and when developing our brand strategies. Now let's go to the next slide and look at the regulatory landscape. Common EU regulations are important and will harmonize markets over time. Still, we see somewhat unsynchronized adoption in the respective Nordic markets. In Sweden, the hub has been postponed and with no set date for realization. Finland will implement the common data hub in 2022. This will have relevance for the market dynamics as well as for business processes. In the big picture, we believe the integrated companies prefer status quo. Whereas the pure retailers prefer the development towards a supply-centric model. Still, we also believe that some of the integrated companies acknowledge regulatory trends and see that the retail business will demand further scale going forward. So let's go to the next slide. Our goal is to be among the top 4 players in both the Swedish and the Finnish markets by the end of 2023. And there's a good potential in both markets to realize Fjordkraft's M&A agenda. As mentioned by both Rolf and Arnstein, the Swedish and Finnish markets are not consolidated to the same extent as Norway. We set up a team to work systematically in both markets, starting with thorough analysis, followed by meetings with relevant contacts. Despite the current situation with a limitation on traveling and fiscal meetings, we have started the work, and we even had a few cross-border video conferences. We get positive feedback on the Fjordkraft platform itself and the more recent development of new services and digital ecosystem as presented by Christian and Roger. New services and value propositions are in demand in the regional markets as well. One recognizes the need for innovation going forward, a larger scale is needed to invest in such innovation. We also get a positive traction on our multi-hub approach. And our proven ability in Norway to realize efficiency from a national platform while working from multiple locations. It's also noted that Fjordkraft's top management is geographically distributed. For an M&A prospect, this reduces a perceived risk of losing local jobs. On the contrary, Fjordkraft may represent an opportunity to further develop local competence and careers. Finally, we received positive feedback on the possibility for owners of a prospect acquisition to own shares in Fjordkraft. And in this way, continue to be part of their retail business. It is perceived that Fjordkraft has a more partner-like approach to the seller and to the local community in its M&A activity. So let's sum up our strategic approach on the next slide. Our strategy going forward includes further M&A growth following our model in Norway, where we primarily have targeted regional publicly-owned energy companies where electricity retailing is not considered core business. We aim to follow the same multi-hub strategy, combining acquisitions and organic growth. We intend to replicate relevant elements from the Fjordkraft platform and facilitate efficient operations based on Fjordkraft practice, allowing for local adjustments of some business processes to fit Swedish and Finnish markets and regulations. Furthermore, we will leverage from our product offering, development of new value-added services and digital ecosystem as well as support the work in developing marketing and distribution, sharing our experience from the Norwegian home market. So let's go to next slide. To sum up this presentation, I would say that we've had a good start through the acquisition of the independent brand, Nordic Green Energy. We intend to follow a combined M&A and organic growth strategy and see a prosperous future in both the Swedish and the Finnish markets. We also think that we've had -- we have found a good approach and that Fjordkraft is able to offer an ideal win-win to potential M&A targets. We see synergies in replicating elements in the Fjordkraft platform and digital ecosystem and we'll support the local organizations with other group capabilities and best practices as well. And finally, our goal is to be among the top 4 in both the Swedish and Finnish markets by the end of 2023. Thank you for your attention.

Yes. Based on our strategy process and realized market review, we have set our new targets in the outlook 2021 to 2023. Page 59. As before, these targets do not include effects from potentially new acquisitions in the coming period. First of all, in 2020, we had shown that we act as a consolidator in the market. And we are maintaining our ambition to act as a consolidator going forward. We see potential for further growth, both in Norway, Sweden and Finland. Going forward, we believe an intensified competition with new players, including tech disruptors that appearance price fighters. This message is consistent with our previous guidance, where we historically have targeted lower margins than realized in the previous years. That being said, our new targets are in line with former targets. At group level, that means we proceed with our target of high single-digit net revenue growth. Due to acquisitions in 2020, we do expect net revenue growth to be above double-digit in 2021. Furthermore, we reiterate our targeted adjusted EBIT margin of 36% to 38%. In the Consumer segment, we continue our target of a mid-single digit net revenue growth and our adjusted EBIT margin is still targeted to a sustainable level of 32% to 34%. In Business segment, we are targeting a sustainable mid single-digit annual growth. That being said, we actually expect above digit net revenue growth in 2021 due to the acquisitions in 2020. The EBIT margin is still targeted at a sustainable level of 52% to 54%. In our newest segment, Nordic, we are targeting an annual EBIT adjusted contribution NOK 50 million going forward. As Per said earlier on, our goal is through M&A activity to be among the top 4 players in both Sweden and the Finnish market by the end of 2023. As stated initially, our outlook does not include effects from potential M&A transactions. Continuing to the new growth initiatives segment, we are targeting a 50% improvement in EBIT adjusted. And thereafter, a positive run rate EBIT from late 2021. We believe in further EBIT growth in the segment in years to come. Moving on to CapEx, we keep our targets of being in the area of NOK 65 million to NOK 70 million, annual. When it comes to leverage, I will do a quick comment on our financing as well. Due to our acquisition strategy and realized M&A transactions in 2020, Fjordkraft entered into a new facilities agreement with DNB in September of 2020. The new facility gives Fjordkraft the needed flexibility in short-term M&A activities and by converting it to a syndicated facility in 2021, we will become acquainted with additional banks in the Nordic banking industry. Going forward, we believe this is important to secure the financial facilities required to realize our M&A agenda. Having increased our long-term loan in combination with our continuous M&A agenda, we are increasing our leverage target to 2.0 to 2.5x net EBITDA, with variations intra-year due to seasonality in net working capital. Furthermore, we believe that our current balance sheet is still enabling a substantial capacity to finance acquisitions going forward. Regarding dividend, we confirm our target as well, announcing an attractive and increasing dividend of at least 80% of net income, adjusted for certain cash and noncash items, as stated in our dividend. That was our comments on the outlook for 2021 to 2023. Morten will now facilitate the Q&A session. Thank you.