Hello, everyone, and welcome to Second Quarter twenty twenty Results Presentation. My name is Mort Noptop, Head of Controlling and Investor Relations at Fjordcraft, and I have the pleasure of guiding you through today's presentation. Due to the current pandemic, this will be an audio cast only, but we will do a Q and A session at the end of the presentation. We encourage you to submit your questions during the presentation as there is some delay on the broadcast. Today's presenters will be CEO, Wolfgang Baumann and acting CFO, Olejohan Langejanes.
And we are starting off with Mr. Wolfgang Baumann.
Thank you, Worten, and welcome, everyone. I'm going directly to Slide three. As you probably already have seen, the second quarter turned out to be yet another strong quarter from Fjallcraft. Net revenue up 15% year on year, EBIT adjusted at 26% and organic customer growth all across the segments. On the back of our results so far, we will announce a positive revision of our financial outlook.
Our CFO will comment more specific on this later in the presentation. Very encouraging also, both for the company and for the shareholders, is the fact that we, during the summer, deliver on our M and A targets. Let's move on to Slide five. Therefore, I am very delighted to start off with some comments on the acquisition of Inlandscraft. The company comprises two brands, Keppelstel Energy and HCR Market, almost 240,000 electricity deliveries and is the largest electricity retailer in Norway.
The transaction increases show club presence in the Eastern part of Norway with offices in Harmar, Winstra and Kungslinger. The customer base is characterized by strong loyalty and a high customer satisfaction, and the organization consists of highly skilled employees. The organic growth potential, particularly in the Gibbons LNG brand, make the acquisition a good strategic fit for Vuelkraft. We see significant potential for both cost synergies and increased sale of value added services and cross sales, as well as financial synergies related to net working capital and purchase of electricity. The purchase price is based on an enterprise value of 1,410.000 million NOKs on a cash and debt free basis and assuming an agreed normalized level of working capital.
The purchase price shall be paid $50.50 cash and in consideration shares in fuel cost at an agreed price per share of $70.74.50 in our case, which is the volume weighted average price last fifteen days prior to signing. The consideration shares of all go to Givosiran's shareholding as eight shares to be paid in cash. The debt of Shawkraft is expected to increase with around 700,000,000 kroner or is expected to be, approximately 700,000,000 after the transaction is completed. The exact number will depend upon the purchase price calculation based on a half year audited financials. These will be calculated within the August, actually.
So we will disclose the final purchase price on the day of closing. The competitive authorities approved the transaction on August 12, and the closing of the transaction is expected to take place during September 2020. The underlying EBIT estimate for 2020 ex COVID-nineteen effects for InlandSkraft is NOK 105,000,000, and we expect synergies to be around NOK 40,000,000. Distributed are OpEx synergies of NOK 30,000,000 and COGS synergies of NOK 10,000,000. In addition, we expect net working capital to be reduced by around CHF100 million from the agreed normalized level.
Some words on the market developments. On Slide six. No doubt that we also in this quarter have a tailwind. The L spot prices continued throughout the quarter to be on a historical low level, mainly driven by hydrogel. The temperatures in the quarter affecting volume delivered varied from cold weather in April and May to a record warm June.
We also have some news from the regulator in the electricity market, NVE. The market churn figures for 2019 have been adjusted at now showing its 24% annual churn in the consumer segment and 13% in the business segments. Okay, let's move on to slide number seven. When it comes to the consumer segment, we saw an organic increase in number of customers as well as increase in average volume per delivery. In total, this amounts to a volume increase year on year of twelve percent.
We have also launched new functionality in the FuelCraft app, now supporting monitoring and control of electric heaters and some other consumer related products. On to Slide eight, We also see increase in number of customers in the business segment, but due to comparable fewer tender customers than in the second quarter last year as well as due to a bit lower consumption, reflecting the COVID-nineteen situation, the total volume decreased by 5% in total. Slide nine. Going on to the new growth initiatives segment, we continue the growth within the mobile segment. Also, the extended alliance concept develops in a positive direction with new partners comprising more than 9,000 electricity deliveries.
All in all, we are very satisfied with the performance in the second quarter, both financially as well as operationally. Now Ulyohan, our acting CFO, will go deeper into the numbers. Uliohan, the floor is yours.
Thank you, Rolf. This is Uliohan speaking. I'm once again pleased to present the financials for you today, giving the strong results we disclosed this morning. I'll start off at Page 11, net revenue. As Horst said, the second quarter turned out to be another strong quarter with an adjusted net revenue of million on group level.
This is up 15% from second quarter twenty nineteen and the growth is driven 75% by margin improvement and 25% by volume growth. The margin improvement is due to a tailwind from favorable market dynamics throughout first quarter and historically low prices throughout second quarter. As you can see from the chart at the left hand side, the consumer segment has the biggest impact. I will come back to segments in a few moments. Looking at the last twelve months adjusted net revenue on the right hand side, we see a new all time high of almost NOK1.43 billion.
This represents an increase of 21% driven by margin improvement. I'll turn to Page 12, EBIT. At the EBIT slide, we see an adjusted EBIT improvement of SEK26 million from second quarter twenty nineteen. This brings us up to 124,000,000, which represents an improvement of 26%. As you can see in the chart at the left hand side, the consumer segment is the main driver for the increase.
The EBIT growth represents an increase in EBIT margin of four percentage points from 36% in the second quarter of twenty nineteen to 40% in the second quarter of twenty twenty. The increased OpEx is driven by sales and marketing costs, administrative costs and variable costs. Looking at the last twelve months on the right hand side, we see that the adjusted EBIT on group level is up SEK126 million from SEK446 million in second quarter of twenty nineteen to SEK572 in second quarter twenty twenty. This represents an increase of 28%, which takes the LTM adjusted EBIT margin up to 40% on group level, up two percentage points year on year and one percentage point from last quarter. Moving on to the segment slide, Page 13.
Starting off on the left hand side with the Consumer segment, we see an adjusted net revenue that is increasing 20% year on year to a nominal level of SEK230 million. The net revenue improvement is driven sixtyforty from volume growth and margin improvements. The nominal EBIT adjusted level of SEK92 million is an increase of SEK29 million year on year. This gives an adjusted EBIT margin of 40%, which represents an increase of seven percentage points year on year driven by net revenue growth. Moving on to the business segment, we have a nominal adjusted net revenue of 75,000,000.
This represents an increase of 3% which is driven by improved margins both from power sales and value added services. The nominal EBIT adjusted level is CHF41 million which gives an adjusted EBIT margin of 55%. This is stable compared with second quarter of twenty nineteen. Continuing to the new growth initiatives on the right hand side, we see a 5% decrease in adjusted net revenue year on year, bringing us down to a nominal level of $9,900,000 in the second quarter of twenty twenty. The nominal EBIT adjusted is decreased by $4,400,000 The decrease is primarily from reduced margins within mobile in connection with COVID-nineteen.
During COVID-nineteen, we have seen an increased voice activity driving costs of goods sold. Providing unlimited voice activity at a set price in the mobile market, we were under risk of margin contractions in locations like this. As stated by Ulf earlier, we had a solid growth in the mobile segment and we had nearly 118,000 subscribers at the end of second quarter of twenty twenty. Moving on to next slide, Page 14. Quick look at the net working capital tells us that the net working capital is decreasing by SEK277 million from last quarter to a nominal level of negative NOK59 million.
The decrease is driven by decreasing prices and seasonally lower volumes. The volume decreased 33% from last quarter contributing to decreasing net working capital, but we've also seen a 61% price reduction from first quarter to second quarter of twenty twenty, which of course reduces the net working capital. The price reduction also concerns the comparison to second quarter of twenty nineteen. The reduction of $182,000,000 in net working capital from last year is driven by 82% lower prices, which offset the 4% volume increase from last year. As communicated in previous presentations as well, the continuous improvements in the invoicing process is of course also contributing positively to the development in net working capital.
Have a look at next slide, Page 15. Quick look at the cash generation tells us that the cash generation is still strong and the cash EBIT adjusted as you see inside the frame is NOK114 million in second quarter. This brings us to a net cash position of $583,000,000 at the end of second quarter of twenty twenty. Next slide, the outlook, Page 16. On the back of the strong results in second quarter, we make a positive revision of our group outlook.
When it comes to effects from the Innosraft acquisition on our outlook, these will be included at third quarter reporting after closing of the transaction. At Grupo, we increased our guidance and expect about double digit net revenue growth in 2020. This due to increased guidance up to double digit net revenue growth in 2020 in the consumer segment. We also expect a higher EBIT margin than targeted in 2020 in the Consumer segment and this is expected to take the group margin to the upper range of the targeted 36% to 38%. In the business segment, we keep our guidance including the minor revision from first quarter reporting.
And in the new growth initiative segment, we expect a total segment EBIT in 2020 in the area of negative 30,000,000 to 40,000,000 up from the comparable €30,000,000 communicated in the first quarter reporting. As explained at the segment slide, we experienced lower margins in mobile due to COVID-nineteen and we are still awaiting new regulations in the mobile markets. Finally, we are increasing our CapEx target to EUR65 million to EUR70 million in 2020. With a rapidly growing customer base, we believe this is the time to accelerate investments in future oriented solutions. That's all for me.
We will now facilitate the Q and A session.
Thank you, Julian. We will give the listeners a few moments to submit their questions, should there be any. Okay. We have received one question, from Patanistran. It's about the consumer segment, and it goes like this.
Your consumer segment continues to deliver above expectations on high net revenue margin. Can you give some comments on the market development? I can try to give some quick comments on that. Since listing, we have had guiding in the consumer segment, which has been lower than what we have realized. And we are seeing that we are able to actually realize strong margins in the consumer segment regardless of the price development.
And then in the latest quarters, we have also had a tailwind from favorable market dynamics as we have commented on. So that's the short answer on that one. Another question from Can you explain the increase in volume in the consumer segment? The main driver for the variation in consumer segment is, of course, the temperature, which in the two months of the quarter was lower than last year. And this is the main driver for, the volume increase.
And also, of course, there are some, effects given the COVID nineteen situation where you have some some, volume kind of going from the business segments to the consumer segment since many people are working from home. So those two factors would be the main explanations for that volume increase. One question on M and A for you, Evof. How do you view the potential for further acquisitions post the acquisition of Inlandscaster?
We continue our efforts within the M and A track. The Patilog Authority, approved this transaction pretty fast, 27% market share now. We expect to be able to grow further, within without any constraints by the competitive authorities, least up to 30%, 35%. With the price level in the energy market, we see that pretty many producers are struggling with their financial positions. So so, we think, the outlook for further M and A transaction in Norway is is pretty good, actually.
But, now we have to concentrate on integrating, Inlandscraft to the organization. So so, let's see. But we are positive on we are on the positive side when it comes to further M and A transaction.
Great. The last question is from Gal, and it is a follow-up question. You state that the NGI segment is targeted to comprise up towards 5% of group EBIT in 2022. Is this ex the latest M and A? And also, you give comments on the updated CapEx?
I can do the part. All of this outlook is excluding M and A. So we will come back with the revised outlook, on our next reporting, which will also include in last quarter.
Yeah. And I can just comment on that as well because it's we are making it more difficult for MDA, of course, to make this 5% due to the fact that the core business will increase tremendously by M and A. So we have to come back to that, of course. May I have the next question, please? Can you give some comments on the CapEx?
Yes. Ole Johan will do that.
Yes. As I told in the outlook page, we believe that this is the time to accelerate investments in future oriented solutions. And when we say that, we mean, the fuel cost up and the product management systems we have. And this is the reason we believe that we will have some more capitalized costs in both as you see we have in second quarter of twenty twenty and the rest of 2020 going forward.
Our ability to handle investments is, of course, increasing when we are succeeding in the M and A transactions. We have more people to go through all the projects we are set up and the constraints on the organization is therefore not an issue as it was before. So therefore, we are now able to accelerate, important issues for us.
Great. That was all the questions. And then, I'd like to thank you all for your attention, and wish you all a nice day. Bye bye.