Genesis Energy Limited · NZX:GNE
Genesis Energy — H1 FY25 Earnings Presentation
30 slides from Genesis Energy's earnings presentation, Feb 21, 2025
Slide 1: Genesis Energy H1 FY25 Results
Lauriston Solar Farm – Canterbury Plains Genesis Energy H1 FY25 Results Investor Presentation Malcolm Johns Chief Executive Julie Amey Chief Financial Officer 21 February 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Genesis Energy Forward-looking statements in this presentation are not to NZX for the purpose of that information being made Limited (“Genesis Energy”) for information purposes only. guarantees or predictions of future performance, are based availabl
Slide 3: Agenda
Agenda H1 FY25 H1 FY25 H1 FY25 Key Messages Group Business Market & Group Appendix and performance performance FY25 outlook Gen35 Update 4 10 15 18 21 Tekapo power scheme – Mackenzie Basin, South Island 3. H1 FY25 investor presentation
Slide 4: H1 FY25 Key Messages
H1 FY25 Key Messages Strong EBITDAF1 of $217m (up 7% vs pcp), leveraging portfolio flexibility in a challenging environment Flexibility drives strong financial performance 1 Navigated national gas shortage, low hydrology/wind in Winter, long Spring gas position, and high hydrology start to Summer, c
Slide 5: Gen35: Portfolio clarity
Gen35: Portfolio clarity Long-term value comprises growth in core and new value streams from monetising portfolio flex 8by28 initiatives Maximising portfolio energy Redefined portfolio from to from FY25 base (TWh)2 FY25 FY28 Core value stream Margin growth 5 TWh of renewables CUSTOMER CUSTOMER c6 TW
Slide 6: Gen35: 8by28 Progress Update
Gen35: 8by28 Progress Update Delivering Horizon 2 and supporting our Gen35 strategy FY28 EBITDAF1 Growth invest.2 Gen35 Initiative FY28 Goal Progress estimated allocation FY28 GOAL range estimate FY25-FY30 Billing and CRM re-platform Operational across Genesis and Frank All milestones for Frank go-l
Slide 7: Customer
Customer Customer Boosting core performance, caring for our customers and empowering the transition Boosting the core Customer Care Empowering the transition Stronger core Digital Manaaki Kenehi Demand side flex EV Transition operating model Transforming the Enhancing our billing platform Caring abo
Slide 8: Renewables
Renewables Renewables Credible pathway to deliver ~5 TWh of renewable energy Lauriston Solar (63 MWp)1 • NZ's largest operational solar farm to date – Commercial Operations Date achieved in February. Project delivered on-budget Edgecumbe Solar (127 MWp)2 • Acquired development from Helios in August
Slide 9: Flexibility
Flexibility Flexibility Dispatchable capacity increases in value as the market incorporates more non-dispatchable renewables Battery Gas Biomass • Huntly Stage 1 FID achieved August • Renewables displacing baseload gas • Term-sheet with Foresta signed to 2024 (100 MW x 2hr) generation with gas gener
Slide 10: H1 FY25 Group performance
Huntly Power Station – Unit 4 H1 FY25 Group performance 10. 20 FEBRUARY 2025
Slide 11: H1 FY25 Reported Earnings
H1 FY25 Reported Earnings Strong financial outcome in challenging winter and market conditions H1 FY25 H1 FY24 Variance Revenue1 $1,753.8m $1,383.8m 27% • Revenue uplift: higher wholesale sales price across thermal and renewable generation, coupled with Retail pricing strategy Gross margin $409.0m $
Slide 12: H1 FY25 Group Gross Margin and Operating Expenses
H1 FY25 Group Gross Margin and Operating Expenses Portfolio flexibility and availability offset challenging weather impacts, with a minor opex increase H1 FY25 Group Gross Margin (GGM) movement ($m) Group Opex by Spend Category ($m) (1) 38 H1 FY25: $192m H1 FY24: $181m (59) 38 People (27) 37 48 52 4
Slide 13: Capital Management
Capital Management Operations FCF reflects replenishment of energy storage for Genesis and Industry H1 FY25 Operations Free Cash Flow (FCF) ($m) H1 FY25 Sources & Use of Funds ($m) Coal Replenishment (kt) (370) 711 FY24 (192) 58 Dividend 572 231 Cash 91 Opening Purchased Utilised Closing drawdown1 1
Slide 14: Financial Resilience
Financial Resilience Capital structure options under review in support of Gen35 strategy Net Debt ($m)1, Liquidity Headroom and Debt Leverage2 Borrowing maturation profile ($m) to FY293 2,000 3.1x 2000 2.9x 2.7x 2.7x 2.8x Indicative target range 1,500 for credit 355 2.2x 435 1500 rating commitment 1
Slide 15: H1 FY25 Business performance
Waipipi Wind Farm - Taranaki H1 FY25 Business performance 15. 20 FEBRUARY 2025
Slide 16: Retail business performance
Retail business performance Enhanced focus on value over volume in an energy constrained market Customers (000) H1 FY25 H1 FY24 Var. Var. (%) Customers > 1 Fuel 148.2 148.9 (0.7) (0.5%) • Customers up 4.7% vs pcp, (including Ecotricity), with focus on electricity customers, reflected in Frank’s tran
Slide 17: Wholesale business performance
Wholesale business performance Achieved strong results while navigating challenging market conditions Wholesale Portfolio: morning peak flex (MW)1 • H1 FY25 characterised by significant portfolio flex, enabling value creation across Thermal capacity flex up Thermal capacity flex down extreme market
Slide 18: Market and Group FY25 Outlook
Tauhara Power Station - Taupō Market and Group FY25 Outlook 18. 20 FEBRUARY 2025
Slide 19: Market update
Market update New emerging trends shaping the New Zealand energy landscape Structural change in gas market Rankine units back in demand Demand for flexible generation exceeds supply Huntly Power Station 19. H1 FY25 investor presentation GENESIS ENERGY 1H25 Results Investor Presentation
Slide 20: Outlook
Outlook FY25 EBITDAF guidance remains unchanged of around $460 million1 • Reflecting dry weather impacts and fuel prices in H1 FY25, recent updates on Tariki well drilling, and a range of hydrology outcomes, guidance for FY25 EBITDAF of around $460 million1 • FY25 capital expenditure of between $130
Slide 21: Appendix
Appendix 21. H1 FY25 investor presentation
Slide 22: ChargeNet Acquisition
Customer Empower the customer led ChargeNet Acquisition transition Investing for a 65% share of NZ’s leading charging infrastructure company Genesis’ customer electrification strategy Electrification of road transport A significant value driver in the customer led transition Electrification of trans
Slide 23: Electricity and Gas gross margin breakdown
Electricity and Gas gross margin breakdown H1 FY25 H1 FY24 Variance Electricity Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Retail Sales C&I 900 GWh $198.52 179 905 GWh $189.74 172 (4)GWh $8.78 7 Retail Sales Residential 1,618 GWh $295.02 477 1,628 GWh $280.9
Slide 24: LPG and Other gross margin breakdown
LPG and Other gross margin breakdown H1 FY25 H1 FY24 Variance LPG Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Retail Sales 24,105 T $2,565.48 62 23,442 T $2,341.35 55 662 T $224.13 7 Wholesale Sales 1,905 T $1,045.87 2 1,574 T $978.33 2 331 T $67.54 0 Emissio
Slide 25: Kupe gross margin and EBITDAF reconciliation
Kupe gross margin and EBITDAF reconciliation H1 FY25 H1 FY24 Variance Kupe Gross Margin Volume Rate per unit $m Volume Rate per unit $m Volume Rate per unit $m Oil Sales 119.3 Kbbl $108.38 13 68.7 Kbbl $88.82 6 50.7 Kbbl $19.57 7 Gas Sales 3.28 PJ $8.33 27 3.00 PJ $7.77 23 0.28 PJ $0.56 4 LPG Sales
Slide 26: Financial statements
Financial statements Income Statement ($m) H1 FY25 H1 FY24 Variance Balance Sheet ($m) H1 FY25 FY24 Variance Revenue 1,761.2 1,366.5 29% Cash and Cash Equivalents 102.0 192.8 (47%) Expenses (1,537.0) (1,180.8) (30%) Other Current Assets 649.1 653.0 (1%) Depreciation, Depletion & Amortisation (113.4)
Slide 27: Operational metrics
Operational metrics Retail Key Information H1 FY25 H1 FY24 Variance Customers with > 1 Fuel 148,240 148,915 (0.5%) Electricity Only Customers 329,558 300,834 9.5% Gas Only Customers 10,131 11,405 (11.2%) LPG Only Customers 28,383 32,061 (11.5%) Total Customers 516,312 493,215 4.7% Total Electricity,
Slide 28: Glossary: Gross margin breakdown
Glossary: Gross margin breakdown Electricity Retail Sales Residential Sales of electricity to residential customers Retail Sales SME Sales of electricity to small business customers Retail Sales C&I Sales of electricity to commercial and industrial customers Wholesale Sales Sale of generated electri
Slide 29: Glossary: Operational metrics
Glossary: Operational metrics Retail Brand Net Promoter Score Based on survey question “How likely would you be to recommend Genesis/ Frank Energy to your friends or family?” Calculated on 3 month rolling basis. Interaction Net Promoter Score Based on survey question “Based on your recent interactio
Slide 30: Glossary: Operational metrics (cont’d)
Glossary: Operational metrics (cont’d) Wholesale Electricity Financial Contract Purchases – Wholesale (GWh) Settlement volumes of generation hedge purchases, including exchange traded and OTC contracts. Excludes PPAs, active trading, Financial Transmissions Rights (FTRs) and Cap/Collar/Floor contrac