Good Energy — FY2021 Earnings Presentation
35 slides from Good Energy's earnings presentation, Mar 29, 2022
Slide 1: Good Energy Group plc Preliminary results
Good Energy Group plc Preliminary results 12 months to 31 December 2021 29 March 2022
Slide 2: Agenda
Agenda Overview Nigel Pocklington, CEO 3 Financial performance Rupert Sanderson, CFO 9 Strategic update Nigel Pocklington, CEO 17 Summary Nigel Pocklington, CEO 32 Rupert Sanderson, CFO 2 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 3: Overview
Overview 3 Strategic overview | © 2022 Good Energy. Private & Confidential
Slide 4: To support one million homes and businesses cut carbon
To support one million homes and businesses cut carbon from their energy and transport use by 2025. Powering a cleaner, greener, world. We make it simple to generate, share, store, use and travel by clean power. 4 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 5: Strategic disposal of 47.5MW generation portfolio
Transformational asset transaction Strategic disposal of 47.5MW generation portfolio for up to £21.2m. Using the capital from our past to invest in our future. 5 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 6: Energy services: where we will play
Strategic overview Energy services: where we will play Renewable supply Decentralised energy Mobility Services to generate, Make it easier to own, drive, Fair priced, transparent, 100% store, consume and share fuel and pay for an renewable electricity your own power electric vehicle (EV) 6 Prelimina
Slide 7: Energy supply market context
Strategic overview Energy supply market context Suppliers in Market vs power prices 70 £400 60 £350 Rising prices £300 Average Electricity (£/MWh) 50 Rising prices throughout 2021 £250 Price cap increasing 54% in April 2022 40 £200 Suppliers Supplier exits 30 £150 28 suppliers exited the market
Slide 8: Energy supply market outlook
Strategic overview Energy supply market outlook UK Electricity & Gas wholesale prices 450 600 Rising prices 400 500 Electricity up 472% and Gas up 752% year on year 350 (March 2022 vs March 2021) 300 400 Peak Electricity up 696% and Gas up 1,227% p / Therm 250 £ / MWh (March 7 2022 peak price vs M
Slide 9: Financial performance
Financial performance 9 Strategic overview | © 2022 Good Energy. Private & Confidential
Slide 10: Financial summary
Financial performance Financial summary Resilient performance despite significant pressure from commodity markets and low wind levels Resilient Net debt Cash Generation performance eliminated positive transaction Company navigated £12m bond repayment in Working capital benefit Sold for £21.2m succes
Slide 11: Income statement
Financial Performance Income statement FY 21 Full year performance in line with recent trading update FY21 Non- FY 21 FY 2020 % change Year end £m Underlying Underlying Reported Underlying underlying Revenue £146.0 £0.0 £146.0 £130.6 12% Customer number growth Cost of Sales -£119.0 £0.0 -£119.0 -£
Slide 12: Profit bridge 2021
Financial Performance Profit bridge 2021 Resilient performance despite significant pressure from commodity markets and low wind levels Movement Data point 12 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 13: Net debt & funding
Financial Performance Net debt & funding The Company is now substantially debt free, Net Debt & Gearing with a strong cash position 45 90% 40 80% 35 70% Debt reduction 30 60% The company is now debt free on a net basis. Gross debt reduced by 87% vs 2020 25 50% Bond 20 40% Repayment of over 70% o
Slide 14: Cashflow statement
Financial Performance Cashflow statement Underlying operational performance impacted by wholesale energy market Year End £(000)s FY 2021 FY 2020 Cash generated from operations Operational cashflows before working capital £3,991 £10,628 Cash generative but significant reduction from 2020; high Work
Slide 15: Cashflow collections
Financial Performance Cashflow collections Systems and operational focus driving strong collections £m Strong collection performance • Price rises in both Domestic and Business • New business billing system migration completed Customer base • Increased focus on good quality business partners to
Slide 16: Capital allocation framework
Financial Performance Capital allocation framework Organic Acquisitions Dividends growth 16 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 17: Strategic update: Investing for growth
Strategic update Investing for growth 1. Renewable supply 2. Decentralised energy 3. Mobility 17 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 18: Renewable supply
Renewable supply Fair priced, transparent, 100% renewable electricity 18 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 19: What makes us different – our 100% fuel mix
Renewable supply What makes us different – 63 29 18 4 our 100% fuel mix 4.3% 71 11 21 10 Hydro 8 6 24 7 13.6% Solar 12 25 38 5 33 2 55 4 0g CO2 18 5 92 7 p/kWh 49.4% 12 30 36 7 Wind 32.7% 11 6 14 14 13 1 137 6 Biogen 29 8 65 7 145 4 14 1 59 8 280 8 2 4 206 8 Source: Our fuel mix as of Jan 2022 49% w
Slide 20: Renewables at a tipping point
Renewable supply Renewables at a tipping point Most emission in 2021 2021 came from: (tCo2e) carbon Gas: 41.96 emissions Home work heating: 62.06 Commuting: 31.36 UK supply market Business market Source: Good Energy carbon emission reporting to 31 December 2021 20 Preliminary Results | © 2022 Good E
Slide 21: Good operational progress
Renewable supply Good operational progress Kraken ENSEK SMART meters Energy trading 100% domestic supply 100% business Rollout on track Migration to become own customers migrated supply customers gas shipper 22k installed in 2021 operationally migrated Delivering an ‘Excellent’ Robust hedging policy
Slide 22: Decentralised energy
Decentralised energy Services to generate, store, consume and share your own power 22 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 23: A leading feed in tariff provider with more affluent domestic customers
Decentralised energy A leading feed in tariff provider with more affluent domestic customers Customer numbers 93% Satisfaction rating Customers are overwhelmingly positive about their 31% experience with FiT 48% sign ups through recommendation Almost half of GE’s customers have been referred by
Slide 24: Growing demand for self generation
Decentralised energy Growing demand for self generation 140 Post-subsidy UK rooftop PV deployment 800 120 700 Cumulative deployment (MW) Quarterly deployment (MW) 600 100 500 80 400 60 300 40 200 20 100 0 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Period Residential rooftop
Slide 25: Smart export payments
Decentralised energy Smart export payments Get paid more for making the electricity grid greener Ideal for homes who generate more than they’re able to use. Or who can shift load effectively Get paid for what you export Current payments based on deemed rather than actual export amounts Rewardi
Slide 26: Mobility
Mobility Make it easier to own, drive, fuel and pay for an electric vehicle 26 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 27: The electric mobility ecosystem
Mobility The electric mobility ecosystem A strong network of partnerships providing the solutions for all areas an EV driver needs Supply Services Infrastructure Electric vehicles Increased electricity Zap-Map providing leading Public and home charging Increased awareness of demand services for all
Slide 28: Zap-Map in numbers
Mobility Zap–Map in numbers Zap-Map registered users vs battery EV parc 420k 450,000 400,000 100.0% 90.0% BEV on the road 350,000 80.0% 70.0% 300,000 60.0% 350k 250,000 50.0% 200,000 40.0% 150,000 Registered users 30.0% 100,000 20.0% 50,000 10.0% 200k - 0.0% Jan-19 Jan-20 Jan-21 Jan-22 Nov-21 Nov-19
Slide 29: Subscriptions
Mobility Subscriptions Recurring revenue streams from solving the specific needs of each segment Freemium model Offers drivers value added features to simplify charging experience 10% Dec 2026 Value for frequent users of the public charging network Feature profile Zap-Plus: smarter search with e
Slide 30: Zap Pay
Mobility Zap Pay Multiple charging networks accessed with one simple payment method Cross network in-app payment 3 networks live. 9 live by April 2022 Increasing utilization. Average charge 26kWh – 29kWh Increasing penetration 15% coverage of total UK network. 25% coverage of ultra / rapid charg
Slide 31: Zap Pay – fleet proposition launched with Fleetcor
Mobility Zap Pay – fleet proposition launched with UK’s #1 fuel card service provider Fleetcor UK’s #1 fuel card Co-branded Billing solution for Zap-Pro service provider app fleet managers subscriptions 31 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 32: Q&A
Q&A 32 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 33: Appendix
Appendix 33 Preliminary Results | © 2022 Good Energy. Private & Confidential
Slide 34: Customer numbers & volumes
Customer numbers & volumes Total customer numbers increased by 2% Electric Supply Volumes GWh 640 Business customers grew materially (SME +27% and HH +15%) 560 542 Business customer demand significantly increase electricity supply 356 259 296 volumes (2021 640 GWh, 2022 560 GWh) 70 67 79 FiT
Slide 35: Disclaimer
Disclaimer The content of this document has not been approved by an authorised person within the The information contained in this document is provided as at the date hereof and is subject to This document contains inside information. By accepting this document and attending the meaning of the Finan