Slide 1: FY23 Results Presentation
FY23 Results Presentation Presenters: Malcolm Johns Chief Executive James Spence Chief Financial Officer 24 August 2023 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Genesis Energy Limited (‘Genesis While all reasonable care has been taken in compiling this presentation, to Energy’) for information purposes only. This disclaimer applies to this the maximum extent permitted by law, Genesis Energy accepts no docume
Slide 3: Agenda
1. Performance highlights 2. Financial performance 3. Operational performance 4. Strategic outlook 5. Guidance 6. Appendix
Slide 4: Performance highlights
Performance highlights Financial Operational Sustainability EBITDAF1 Growth in customers Carbon emission reduction2 $524m 12,709 1,625 kt CO2e Increase of 19% on FY22 Increase of 2.7% on FY22 Decrease of 45% on FY22 NPAT Generation costs - total Customers on EV plans $196m $35/MWh 4,153 Decrease of
Slide 5: Financial Performance
Financial Performance
Slide 6: FY23 Financial Summary
FY23 Financial Summary $ MILLIONS FY23 FY22 Variance % Movements Revenue1 2,374.2 2,842.1 (467.9) (16%) q EBITDAF 523.5 440.3 83.2 19% p NPAT 195.7 221.9 (26.2) (12%) q Operating Expenses2 330.2 298.7 31.5 11% p Operating Cash Flow 422.6 261.7 160.9 61% p Free Cash Flow3 335.2 263.9 71.3 27% p Capit
Slide 7: FY23 EBITDAF
FY23 EBITDAF 700 440 400 $m 200 100 FY22 EBITDAF 141 Electricity Gross Margin Gas Gross Margin (8) Leg Gross Margin (18) Other Gross Margin (9) Kupe Gross Margin (32) Operating Costs 524 FY23 EBITDAF
Slide 8: Gross Margin Movements
Gross Margin Movements Electricity: • Consistently strong hydro inflows drove higher renewable generation which was up by 937GWh. Electricity Gross Margin Gas Gross Margin • Coal use was substantially down, as gas availability improved and the portfolio ran short during periods 700 140 of low prices
Slide 9: Net Profit After Tax
Net Profit After Tax 1 1 1. EBITDAF includes a net realised gain of $3 million for realised gains/losses on electricity derivatives and carbon trading which is classified as fair value and other gains / losses in the Income Statement 9.
Slide 10: Operating Expenditure
Operating Expenditure • Technology costs increased, due to investment in our billing platform upgrade and continued investment in our retail product offerings. • Staff costs were higher, both for employees and contractors. Cost relating to insurance, travel and vehicles were also up. • Additional st
Slide 11: Capital Investment and Investing Cash Flows
Capital Investment and Investing Cash Flows FY23 Capex and Investments Stay In Business capital expenditure includes: • Investment in stage two of the Tuai generator upgrades and turbine overhaul at Piripaua Power Station. Capital Investment and Investing Cash Flows • Completed planned maintenance p
Slide 12: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Fixed Interest Rate Profile • The strong EBITDAF performance resulted in a reduction of debt and a 8.0% 81% 90% decline in Adjusted Net Debt/EBITDAF to 2.2. 74% 72% 75% 72% 80% • Total cost of funding increased to 5.2% as floating interest rates 7.0% 61% 70% increased. 55
Slide 13: Dividend maintained at current level
Dividend maintained at current level Dividend per Share and Pay-Out history 20 140% 17.05 17.2 17.4 17.6 17.6 • Genesis declared a final dividend of 8.8 cps, representing a total 18 16.9 120% dividend of 17.6 cps. 16 106% 14 97% 97% 89% 100% • A supplementary dividend 1.55292 cps will be paid to non
Slide 14: Operational Performance
Operational Performance
Slide 15: Growth in customers and loyalty
Growth in customers and loyalty Growth in Customers • In FY23 Genesis demonstrated strong customer growth across both 390,000 96,000 Genesis and Frank Energy brands, with total customers up over 12,000 over the year. 388,000 94,000 • Customer loyalty remained strong, as net churn remained low, at 12
Slide 16: Flexibility in volatile market conditions
Flexibility in volatile market conditions Relative Portfolio Flexibility • High hydro inflows nationally meant wholesale prices remained low 40% Genesis utilising throughout the year but capacity driven volatility remained. flexible generation 30% portfolio • Genesis was able to utilise flexible pla
Slide 17: Emissions significantly lower
Emissions significantly lower Drivers of Scope 1 Emissions Decline • Greenhouse gas emissions continued to decline in FY23, with total emissions 64% lower than in FY21. • The significant decline in carbon emissions over the past two years has been driven by: − High hydro inflows nationally. − Reduce
Slide 18: Plant available to support Unit outage
Plant available to support Unit 5 outage Huntly Power Station Generation Plant Status • Genesis has been careful to maintain Rankine operational capability for Capacity Status Key Maintenance/ situations such as the present outage. This includes the ongoing support Certification of Rankine Unit 2 as
Slide 19: Sustainable outcomes for our People, Planet and Prosperity
Sustainable outcomes for our People, Planet and Prosperity Sustainability Framework: Community Investment FY23 Highlights Strategic Pillars Priority Areas COMMUNITIES CLOSEST TO OUR Launch of Tongariro Customer Hub, POWER SCHEMES employing 12 people More Equal Society STEM SKILLS & CAREER PATHWAYS 3
Slide 20: Supporting our people
Supporting our people Leadership Progression Gap • Genesis continued initiatives such as the Women in Leadership Series. The 58% 42% Company maintained focus on gender equity through our YWCA GenderTick Accreditation. 1.7% • Genesis focused on hazard awareness and LPG delivery safety to reduce the P
Slide 21: Strategic Outlook
Strategic Outlook 21.
Slide 22: Reviewing the market over a 10-year horizon
Genesis is reviewing the market over a 10-year horizon, to ensure the company is best placed for the future Value Opportunities for Genesis • Genesis is reviewing the New Zealand energy market and considering the company’s opportunities over the next 10 years and beyond. Electrifying our Customers •
Slide 23: Flexibility critical through energy transition
Flexibility critical through energy transition Spot Market Volatility 800% Average Monthly Intraday Price Variance vs • Wholesale market conditions in FY23 demonstrated that 700% Battery use optimal generation, demand and fuel flexibility are critical, especially in in periods of low 600% periods of
Slide 24: Solar development pipeline
Solar development pipeline Solar Development Pipeline • The Solar-Gen JV with FRV added 400MWac of capacity to the Development Advanced Stage Final Construction Operating solar development pipeline by securing three additional solar sites Investment Opportunity Asset Asset Asset Decision in Hawkes B
Slide 25: Investing in technology to drive productivity
Investing in technology to drive productivity Technology Investment Pipeline • Reduce technical complexity and cost - simplify our technology stack and increase FY24 FY25 FY26 FY27 our speed to market for new products and services. Billing, Customer and Sales System • Reduce operating costs - captur
Slide 26: Genesis Leadership Team
Genesis Leadership Team Malcolm Johns Tracey Hickman James Spence Chief Executive Chief Commercial Officer Chief Financial Officer BMS MA (Hons), AMP (Harvard) BSc, CA Joined as Chief Executive in Over 29 years energy sector Experience as Chief Financial March 2023. Previously Chief experience, incl
Slide 27: Kupe
Kupe Kupe Gas Production through FY23 70 60 • Production at Kupe was lower, due to a planned outage, 50 Gas Produced (TJ) reduced gas demand and declining peak capacity. 40 • Genesis and our joint venture partners have committed to invest 30 in a development within the existing permit area to access
Slide 28: Guidance
Guidance FY24 EBITDAF is expected to be around $430 million subject to hydrological conditions, gas availability, and any material adverse events or unforeseeable circumstances. As previously announced, Huntly Unit 5 is scheduled to return to service in May 2024. Genesis is actively pursuing options
Slide 29: Appendix
Appendix genesis inley ape $ es
Slide 30: Electricity and Gas Gross Margin Breakdown
Electricity and Gas Gross Margin Breakdown FY23 FY22 Variance Electricity Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Retail Sales C&I 1,792 GWh $169/MWh 303.2 1,929 GWh $142/MWh 273.6 (137)GWh $27/MWh 29.6 Retail Sales Mass Market 3,871 GWh $270/MWh 1,043.2
Slide 31: LPG and Other Gross Margin Breakdown
LPG and Other Gross Margin Breakdown FY23 FY22 Variance LPG Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Retail Sales 43.9 kt $2,206/t 96.8 44.3 kt $1,946/t 86.3 (0.4) kt $260/t 10.5 Wholesale Sales 7.3 kt $1,068/t 7.8 17.1 kt $1,174/t 20.1 (9.8) kt $(106)/t (
Slide 32: Kupe Gross Margin and Reconciliation to EBITDAF
Kupe Gross Margin and Reconciliation to EBITDAF FY23 FY22 Variance Kupe Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Oil Sales 254 Kbbl $100.7/bbl 25.6 292 Kbbl $85.9/bbl 25.1 (37)Kbbl $14.7/bbl 0.5 Gas Sales 8.4 PJ $7.6/GJ 63.9 11.1 PJ $7.1/GJ 78.8 (2.7) PJ $
Slide 33: Carbon Hedge Position
Carbon Hedge Position Carbon Hedge Prices Carbon Hedge Position 140 100% 90% 120 80% 100 70% 60% ($/NZU) 80 50% 60 40% 40 30% 20% 20 10% 0 0% FY24 FY25 FY26 FY27 FY28 FY29 FY24 FY25 FY26 FY27 FY28 FY29 Carbon Forward Curve Hedge Price Hedged Unhedged Position as at 30 June 2023. Position as at 30 Ju
Slide 34: Carbon Unit Costs and Derivatives Settlement
Carbon Unit Costs and Derivatives Settlement ETS Cost Reconciliation Electricity Derivative Settlement FY22-FY23 FY23 FY22 Internal External Internal External Electricity Emission Unit Revenue ($m) - - - 20.5 $75m Emission Unit Cost ($m) 5.7 19.4 8.0 43.0 Emission Units Revenue (NZU) - - - 286,398 E
Slide 35: Financial statements
Financial statements FY23 FY22 FY23 FY22 Income Statement Variance Balance Sheet Variance ($m) ($m) ($m) ($m) Cash and Cash Equivalents 60.1 105.6 Revenue 2,374.2 2,842.1 (16)% Other Current Assets 534.3 626.0 Expenses (1,860.2) (2,408.7) (23)% Non-Current Assets 4,495.6 4,540.8 Depreciation, Deplet
Slide 36: Debt Information
Debt Information GENESIS DEBT PROFILE AT 30 June 2023 FY23 FY22 Debt Information Variance ($m) ($m) Total Debt $ 1,367 1,493 Cash and Cash Equivalents $ 60 106 Headline Net Debt $ 1,307 1,387 -5.8% USPP FX and FV Adjustments $ 22 35 Adjusted Net Debt1 $ 1,284 1,352 -5.0% Headline Gearing3 36.2% 38.5
Slide 37: Operational Metrics
Operational Metrics Retail Key Information FY23 FY22 Variance Retail Netback by Segment & Fuel FY23 FY22 Variance EBITDAF ($ millions) (11.0) 55.7 (119.7)% Residential - Electricity ($/MWh) $134.62 $138.35 (2.7)% Customers with > 1 Fuel 142,987 133,550 7.1% Residential - Gas ($/GJ) $17.79 $16.71 6.5
Slide 38: Glossary – Gross Margin breakdown
Glossary – Gross Margin breakdown ELECTRICITY Retail Sales C&I Sale of electricity to commercial and industrial customers. Retail Sales Mass Market Sale of electricity to residential and small business customers. Wholesale Sales Sale of generated electricity onto spot market, excluding PPA settlemen
Slide 39: Glossary – Operational Metrics
Glossary – Operational Metrics RETAIL Customers Electricity and gas customers are defined by single customer view, regardless of number of connections (ICP’s). ICP Installation Connection Point, a connection point that is both occupied and has not been disconnected (Active-Occupied). Resi, SME, C&I
Slide 40: Investor Relations Enquiries
Investor Relations Enquiries Tim McSweeney GM Investor Relations & Market Risk +64 27 200 5548