Welcome, everyone, to Fjellkraft's Second Quarter Results Presentation. My name is Morten Uptal, Investor Relations at Fjallraaf, and I will be guiding you through today's presentation. Due to the ongoing pandemic, this event is a webcast only. However, we encourage you to submit questions through the webcast player as there will be a Q and A section at the end. Due to the delay on the broadcast, we encourage you to submit the questions during the presentation.
Today's presenters are our CEO, Rolf Baumann and our CFO, Berte Strandler. And we are starting off with Rolf Baumann.
Thank you, Morten, and welcome to everyone joining on in this webcast this morning. It's a pleasure to announce that the 2nd quarter has been a quarter with growth both in net revenue and EBIT adjusted year on year. Net revenue increased 24% year on year and EBIT adjusted increased 40% year on year, the main driver of the increase being the M and A activity. The overall number of electricity deliveries decreased by almost 2,000 in the quarter, which is a significant improvement from last quarter's development, which as you probably know was highly affected by COVID Restrictions hampering our sales activity. The activity level is now a lot higher, And I will come back to some of the ongoing initiatives and campaigns in a few moments.
We have also done our first acquisition of mobile customers. Yesterday, we announced the acquisition of Sky Mobile's Customer portfolio of about 38,000 customers, our decision to be an MVNO instead of a service Makes it interesting to look into opportunities also when it comes to acquiring mobile portfolios, As the purchase price depends on how many customers will succeed in migrating to the FuelCraft brand, The purchase price will be announced in the reporting material for the Q3. Next slide, Page 4. When it comes to regulatory development in our industry, there has been some events worth Commenting on. The Norwegian Parliament adopted a resolution in May this year requesting that the Norwegian government implements Three items.
Number 1 is to standardize price information, making it easier for consumers to compare prices across different contract types and price models. Number 2 of 3 is requesting clearer information about changes Our view on these items is that standardization of rules and practice between the players in the industry It's beneficial for large players like FjordCraft. And historically, we adapt quickly to new regulations in an appropriate manner. Regarding standardized price information, this matter has been discussed in the industry for many years now without being sold. The complexity of the industry accelerated now by more volatile energy sources, Which is actually paving the way for multiple ways of hedging the electricity price also in the Consumer segment Seems to make it even more difficult to standardize price information.
But we welcome the discussion I will take an active role together with Anna Chi Norge in this matter. The second and third item on the regulatory Development is covered through the Trigstrom Handel certification process. This ongoing certification process We expect that the 1st batch of retailers will be announced during the Q3. It has been a comprehensive process of certification involving a broad range of employees and departments within our organization. And I'm very confident in the work that has been put into the certification from our side.
Next page, page 5. I mentioned that our sales activities have been hampered by COVID restrictions in this pandemic. The situation in Norway is different now. And in the last part of June, our customer growth was back to positive again. In our customer offering, we have had a lot of success with a variable contract with an attractive price ceiling.
This has been well received by new customers, especially in a year with volatile and high air spot prices. Our physical sales channels are on their way back to pre COVID levels, and we have several ongoing campaigns. One is through Power, the Nordic electronic retailer, with discounts to new electricity customers, both in store and online. And another one is through TRUMPF, a bonus program, which rewards both new and existing customers. Regarding our M and A agenda, I will come back to that later, just saying that we are continuously working on this And the activity level continues at a high level unaffected by COVID restrictions.
Next page, Page 7. In the Q2 of 2021, the average Daily system price was 6 47 percent higher than the Q2 of 2020. While 2020 as a whole, including the Q2, was a year with exceptionally low electricity price due to the Hydrology. The Q2 of 2021 has been affected not only by a weaker hydro last year, but also affected by an increase in the price of CO2 quotas, increased coal and gas prices and lower amounts of generation from wind power. The Q2 2020 represented definitely a very favorable market situation, While the market dynamics in the Q2 of 2021 have been quite different, Birto will come back to the financial impact of this.
Next page, Page 8. In the Consumer segment, the number of electricity deliveries in the Consumer segment decreased by 10,640 deliveries. But there was a clear positive trend throughout the quarter with positive growth figures on the second half of June and a significant improvement versus the development in the Q1. Volumes sold It's increasing by 35% year on year, driven by M and A. Next page, Page 9.
The business segment continues the strong development and grew by more than 2,000 deliveries in the quarter. Volumes sold increased by 26% year on year, also here driven by M and A. Our new concepts Presented on our Capital Market Day are well received, and we look forward to report from these initiatives on the 3rd quarter presentation. Next page, Page 9. The Nordics segment is also developing well, with a growth of more than 6,500 deliveries in the quarter.
The growth is within both B2C and B2B and is in both Sweden and Finland. As I mentioned earlier, the M and A activity is quite unaffected by the COVID-nineteen, and the activity It mainly takes place in Sweden and Finland. Our target is still to have a top 4 position both in Sweden and Finland within the end of 2023. Next page, Page 10. In our new growth initiatives, the organic development in mobile subscribers was quite flat during the quarter.
As I mentioned earlier, we acquired Sky Mobile's 38,000 subscribers yesterday. And this will obviously have a positive impact on the segment going forward. The Alliance business grows its volume sold by 26% year on year, and the growth in the extended Alliance deliveries It's very strong this quarter, up more than 22,000 following the start up of 2 new Alliance partners. Then I'd like to give the word to our CFO, Berte Strandard, who is back from her maternity leave. Bertha, the floor is yours.
Thank you, Ralf. I will start to make some comments on net revenue. That's Page 13. We are pleased to announce that we have increased our net revenue with 24% or NOK 74,000,000 Nominally year on year. And as you can see from the graph to the left of the slide, All segments are contributing positively to the growth, although the electricity price The Q2 2020 represented a very favorable market situation for us, resulting in strong financials, driven by the variable contracts in the Consumer segment.
While the market dynamics This Q2 have been more neutral. The main driver for the positive net revenue Development in the group is the acquisition of both in Landscraft and Swiss Nordic Green Cross customers. Next page, Page 14. EBIT adjusted is CHF 141,000,000 this Quarter, that's up 14% year on year or SEK 17,000,000 in nominal kroners. All segments, except the Consumer segment, have a positive development year on year.
And also here, the main driver is the M and A growth. The negative development in EBIT adjusted of euros 17,000,000 year on year in the Consumer segment is explained by, as I mentioned, the significant favorable market dynamics we experienced last year. The synergy realization of the Inlandscraft transaction is developing as planned. The Ait Siva brand is Now successfully integrated into the Fjordkraft factory, and full synergy realization is still expected last quarter this year. LTM EBIT adjusted increases to NOK603 1,000,000.
That gives us an LTM EBIT adjusted margin of 37%, which is within our guidance of 36% to 38% for the group. Then moving to Page 15, Making some comments on the segment slide, starting with the Consumer segment. As already mentioned, the Consumer segment Has a marginal positive development, 4% growth in net revenue, but a negative Development of 18% year on year on EBIT adjusted level. We Believe this to be a good and more normalized achievement due to the extraordinary development in the Allspots price year on year. The EBIT adjusted margin is down 9 Percentage points year on year to 31%.
Calculating it on an LTM basis Makes an EBIT margin year on year of 32%, well in line with our long term guidance. On the right side of the same page, you see the development in the business segment. The business segment has a significant positive development year on year with a growth of 30% in net revenue and 41% in EBIT adjusted. The net revenue growth is driven 85 percentage point by volume growth from the M and A transactions, but we have also been able to grow our product margins in the segment. In addition to this significant growth in net revenue, the segment is also benefiting from a relatively low cost development year on year.
Then moving to Page 16, Starting with some comments on the Nordic segment. This segment is new as of the 4th Quarter last year when we closed the S and G transaction, giving us approximately 165 1,000 deliveries in Finland and Sweden. This quarter, the segment delivers net revenue of SEK 35,000,000 and an EBIT adjusted of SEK 12,000,000, which is a performance well in line with our increased guidance from last quarter. The new growth initiative segment is showing improved EBIT adjusted for the 4th Consecutive quarter, the improvement is driven by the mobile segment. Then moving to Page 17 and some key elements from the balance sheet and the cash Flow statement, starting with the net working capital.
Net working capital is decreasing to SEK 218,000,000 at quarter end. It's a significant decline since last quarter, but please Mark, that Q1 level of net working capital was inflated due to public holidays or Easter at the end of the Q1. Year on year, net working capital is increasing by NOK 270 NOK 7,000,000. Both prices and volume has had a significant increase since the Q2 last year, And there will always be some irregularities in the invoicing pattern. A quick comment also on the NIB development.
We have a net debt of NOK 7 and NOK 42,000,000 at the end of the quarter. It's a reduction of NOK 60,000,000 from last quarter. Dividend of NOK 3.5 per share or NOK 400,000,000 in total Has been paid out to our shareholders this quarter, but is more than offset by the positive change in net working capital and our cash EBIT adjusted performance this quarter. And the cash generation is still strong with a Cash EBIT adjusted of NOK 117,000,000 as you can see from inside the frame on this page. Moving to Page 18.
We have prepared a slide for you this Time with an update on our hedging strategy. As you know, historically, Fjallra Kraft has not done any hedging of the Price risk due to the short term 14 days notification period attached to the variable products, But on the back of increased L SPOT volatility and decreased demand for risk mitigation products from our customers, we have revised our hedging policy. Still within our low risk framework to increase the predictability of our purchase price and financial results. Fjordkraft will hedge a larger portion of the variable contract portfolio going forward. Turning to the last page, Page 19, our presentation today.
Our outlook. We have made no changes to our outlook. The revisions that we did last quarter are still valid, maintaining our target of an EBIT adjusted margin for the group in the range of 36% to 38 present. And now we will move on to a Q and A session facilitated by Joao Morten. Thank you.
Thank you, Peter. And as I mentioned in the introduction, you can We've already received some questions, so I think we can start with the first one. It's for Ole Martin, and it goes like this. How has the trend in deliveries been since the end of the second quarter? Maybe you can make a comment on that, Rolf.
Yes. Thank you very much for the question, Unum Martin. The trend is positive. I reckon you are particularly interested in the Consumer segment, and I
Good. A second question from Rune Martin is the following. The power prices are currently at a very high level. How does this impact your margins in near term? I can make a quick comment on that.
Obviously, as we mentioned in the presentation, there's a big difference between 2020 or 2020 Elspod price level and this year's price level. What we have previously said about the price level is still valid. The exact level of the price level is not Detrimental to our margins, the volatility has an impact on margins. And also, as Bertha mentioned, we are where we have revised our hedging strategy. So we have some measures in order to handle this price level as well.
The third question from Ole Martin is the following. Has the market activity in the 3rd quarter so far been above normalized levels. Maybe you want to comment that also?
We are very happy that we are heading towards a more normalized situation. And as I said in my presentation, we have several campaigns now. But I cannot say that it is above normalized level. I think it is We are happy that we are returning to normalized levels. I think that would be correct to say.
Good. Another question is the following. Can you comment on the revenue per subscriber for G Mobile? I can comment on that. As stated in the press release, Schimmobil has been very attractively priced among the low data plants price plans, and that It might be an indication.
Other than that, we don't have an explicit statement on that. Then there are some questions on hedging. One is on the cost impact. Another one is on how much of the volumes we should expect Fjordkraft to hedge. Do you want to give some comments on that, Britta?
Yes. I can do. Because of the us Being a very big player and also the liquidity in the financial market that we can do these kind of trades, We won't say anything specific about this because it's we regard this as a sensitive Matter, both towards the trading activities in the market but also to our competitors. But I think you should look upon it as a positive element. It is a Mitigation factor for us, easing out the results, the financial results.
So that's how we at least look upon it from our side.
Great. Another question is the following. Do you expect at least stable dividend for the financial year 2021?
I can comment on that. That was an easy one. Yes. The answer is yes.
Okay. We've been through all the questions, and I think we will conclude on that. So we'd like to thank you all for your attention, and have a nice day.
Have a nice day.