Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2022)
34 slides from Genie Energy's investor presentation, Mar 23, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022 Genie Energy Ltd (NYSE: GNE)
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains forward - looking statements. Statements that are not historical facts are forward - looking statements and such forward - looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
Slide 3: The Foundation
3 The Foundation Largest shareholder group has a consistent track record of building businesses & creating significant value for shareholders Company Market Value @9/14/09 Most Recent Market Value * Genie Energy (NYSE: GNE) 10/28/11 (Spin - off) $179M IDT Corp (NYSE: IDT) $53M $868M IDW Media (NYSE
Slide 4: Genie Energy Highlights
4 Genie Energy Highlights HQ Newark, NJ Key Management and Board Members: CEO Michael Stein CFO Avi Goldin Chairman Howard Jonas Lead Independent Dir. Wesley Perry Employees ~150 Tickers (NYSE) GNE, GNEPRA * Pro - forma excl. impact of Texas Winter Storm Uri, UK, Japan, & GOGAS operations as of 12/3
Slide 5: Genie Energy Operating Structure
5 Genie Energy Operating Structure Genie is a leading retail energy provider (REP) to select deregulated markets within the US & Scandinavia & provides solar solutions in the US Genie Renewables Genie Energy Ltd. NYSE: GNE, GNEPRA Genie Retail Energy (GRE) Genie Retail Energy International (GREI)
Slide 6: Investment Thesis
Investment Thesis 6 Proven cash generation from GRE through diverse commodity & economic market environments Core GRE/GREI profit growth + emerging growth optionality in renewables Portfolio management drives enhanced FCF for growth investments & shareholder value creation strategies Strong, debt -
Slide 7: Genie's 2022+ Growth Strategy
Genie’s 2022+ Growth Strategy 7 Expand current retail operations to spur organic growth Identify new markets for expansion I ntroduce new products into existing, successful marketing channels Develop vertically integrated solar & renewables solutions businesses
Slide 8: Genie Retail Energy (GRE)
GENIE RETAIL ENERGY (GRE)
Slide 9: GRE: US Market Opportunity & Dynamics
GRE: US Market Opportunity & Dynamics 9 Competition Incumbent utility & other REPs 28 Deregulated markets (State by state regulatory structure) Role of Utilities Distribution & Billing (most markets)
Slide 10: GRE Value Creation
GRE Value Creation Multiple sales channels to residential & small commercial Diverse portfolio of products highlighted by green energy (carbon offsets), variable & fixed rate plans Deep data analysis to identify market opportunities & optimize offerings Hedging strategies reduce commodity volatility
Slide 11: Genie Renewables
GENIE RENEWABLES
Slide 12: Genie Renewables at a Glance
Genie Renewables at a Glance 12 Customers make decisions based on relationships & price Best in class companies fund their own projects Government subsidies helping 2 - 4 strong regional market players + some small local players More competition in community solar space Today’s Offering: C&I & commu
Slide 13: Genie Renewables – US Market Dynamics
Genie Renewables – US Market Dynamics 13 Commercial customers increasingly financing conversion costs Chinese supply constraints present opportunities Increasing government incentives for community solar >43% Solar as a % of new grid capacity (2020) >600K TAM for Solar on commercial facilities 1% Pe
Slide 14: Genie Renewables – Growth Strategy
Genie Renewables – Growth Strategy 14 Expansion to adjacent markets Increasing sales force & growing distribution relationships Own & operate community solar projects Leverage vertical integration to develop community solar projects Improve solar development project close rate Provide financing opti
Slide 15: Genie Retail Energy International (GREI)
GENIE RETAIL ENERGY INTERNATIONAL (GREI)
Slide 16: GREI's Businesses
BY GREI’s Businesses Finland 2 LUMOENERGIA Sweden 2 LUMOENERGI
Slide 17: GREI's Market Opportunity
GREI’s Market Opportunity 17 0.5M 2.5M 7.0M 2.7M 4.7M 2.5M 1.5M
Slide 18: GREI at a Glance
GREI at a Glance 18 ~70 Active Suppliers >50% * Est. share of Top 3 100% Monthly Payment Plans Low Barriers to Entry Light to medium market regulation Consolidation underway *Internal Estimate Market Dynamics Finland: Variable, Fixed, Bundle, & Premium Electricity Sweden: Variable, Fixed Electricity
Slide 19: GREI Growth Strategy
GREI Growth Strategy 19 Invest for profitable meter growth in existing markets Organic & acquired meter acquisition strategies Improve profitability by market as businesses mature Reduce churn - customer service investment in technology/human capital Economies of scale - create operating leverage &
Slide 20: Financial Summary
FINANCIAL SUMMARY
Slide 21: Genie Energy Pro-forma Consolidated Financials
21 Genie Energy Pro - forma Consolidated Financials * 25% 27% 29% 31% 33% 35% $0 $50 $100 $150 $200 $250 $300 $350 $400 2018 2019 2020 2021 Revenue Adj. EBITDA Gross Margin $m * Pro - forma excluding the impact of Texas Winter Storm Uri, UK, Japan & GoGas operations a/o 12/31/21. Please see reconcil
Slide 22: GRE Pro-forma Financial Highlights
GRE Pro - forma Financial Highlights * 22 25% 27% 29% 31% 33% 35% $0 $50 $100 $150 $200 $250 $300 $350 2018 2019 2020 2021 Revenue Adj. EBITDA Gross Margin $m * Pro - forma excluding the impact of Texas Winter Storm Uri on operations a/o 12/31/21. Please see reconciliations in Appendix
Slide 23: Genie Renewables Financial Highlights
Genie Renewables Financial Highlights * 23 0% 5% 10% 15% 20% 25% 30% 35% 40% -$5 $5 $15 $25 $35 2018 2019 2020 2021 Revenue Adj. EBITDA Gross Margin $m * Please see reconciliations in Appendix **Assumes current backlog of signed contracts are fully installed during 2022 2020 Large, low margin order
Slide 24: GREI Pro-forma Financial Highlights
GREI Pro - forma Financial Highlights * 24 0% 5% 10% 15% 20% 25% 30% 35% 40% -$5 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 2019 2020 2021 Revenue Adj. EBITDA Gross Margin * Pro - forma excl. impact of UK & Japan operations as of 12/31/21. Please see reconciliations in Appendix $m
Slide 25: Genie Energy Summary
Genie Energy Summary 25 Proven cash generation from GRE through diverse commodity & economic market environments Core GRE/GREI profit growth + emerging growth optionality in renewables Portfolio management drives enhanced FCF for growth investment & shareholder value creation strategies Strong, debt
Slide 26: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Managing Director, Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
Slide 27: Non-GAAP financial measures notes
27 In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles i n t he United States of America (GAAP), Genie Energy disclosed for the fourth quarter and full year 2021, as well as for the third quarter 2020, Adjusted EBITDA on a conso
Slide 28: Pro-forma Financials – Genie Consolidated
28 *Pro - forma Financials *** Pro - forma excluding the impact of Texas Winter Storm Uri, GoGas , UK & Japan operations a/o 12/31/21. Please see reconciliations in Appendix $ (000's) 2018 2019 2020 2021 Revenue GRE $274,440 $286,610 $304,450 $311,830 Lumo --- $15,190 $18,500 $40,460 Other $5,690 $1
Slide 29: Pro-forma Financials – Genie Retail Energy
29 *Pro - forma Financials * Pro - forma excluding the impact of Texas Winter Storm Uri a/o 12/31/21. Please see reconciliations in Appendix $ (000's) 2018 2019 2020 2021 Revenue Electricity $227,880 $246,690 $270,890 $273,020 Gas $46,560 $39,930 $33,560 $38,810 Total Revenue $274,440 $286,610 $304,
Slide 30: Pro-forma Financials – Lumo Energy
30 *Pro - forma Financials * Please see reconciliations in Appendix $ (000's) 2019 2020 2021 Revenue Finland $15,190 $17,800 $36,770 Sweden --- $700 $3,680 Total Revenue $15,190 $18,500 $40,460 COGS Finland $14,620 $14,280 $26,550 Sweden --- $650 $680 Total COGS $14,620 $14,930 $27,230 Gross Profit
Slide 31: Reconciliation Tables – Genie Energy Highlights
31 Reconciliation Tables Slide 4 - Genie Energy Highlights 2021 Consolidated revenue (as reported) $363,730 Less Revenue of Genie Japan + Orbit Energy (UK) $3,930 Pro-forma consolidated revenue $359,800 Consolidated gross profit (as reported) $104,860 Less Gross (loss) profit of Genie Japan and Orbi
Slide 32: Reconciliation Tables – GRE Financial Highlights
32 Reconciliation Tables Slides 11,28 - GRE Financial Highlights 2018 2019 2020 2021 GRE revenue (as reported) $274,950 $286,610 $304,450 $311,830 GRE gross profit (as reported) $75,690 $80,620 $88,310 $90,880 Less Gross profit (loss) from Winter Storm Uri --- --- --- ($10,000) Pro-forma GRE gross p
Slide 33: Reconciliation Tables – Lumo Financial Highlights
33 Reconciliation Tables Slides 24,29 - Lumo Financial Highlights 2019 2020 2021 GREI revenue (as reported) $16,590 $49,650 $44,390 Less Revenue of Genie Japan and Orbit Energy (UK) $1,400 $31,150 $3,930 Pro forma GREI revenue $15,190 $18,500 $40,460 GREI gross profit (as reported) $330 $7,160 $11,2
Slide 34: Reconciliation Tables – Genie Energy Financials Consolidated
34 Reconciliation Tables Slides 21,27 - Genie Energy Financials - Consolidated 2018 2019 2020 2021 Consolidated revenue (as reported) $280,310 $315,290 $379,310 $363,730 Less Revenue of Genie Japan + Orbit Energy (UK) --- $1,400 $31,150 $3,930 Revenue of GOGAS $170 --- --- --- Pro forma consolidated