Slide 1: FY17 result presentation
Slide 2: Rachel Foster, Residential customer
Rachel Foster Residential customer
Slide 3: Local Energy Project
LOCAL ENERGY PROJECT Marc England CHIEF EXECUTIVE Lydia Genet A LE Siv Fjaerestad
Slide 4: Results Presentation: customers' first choice for energy management
S$ — to be customers’ first choice for energy management y Delivering a Ensuring Creating value Agile culture cohesive customer security of supply through an embracing and experience with in a volatile integrated leading change 3 products on renewable market fuel position one technology platform
Slide 5: FY17 highlights
FY17 highlights — significant steps delivered on new strategy. COMPLETED 192,, Nova Energy retail LPG business acquisition making Genesis a retailer of scale across 3 fuel types COMPLETED 168. Kupe acquisition taking total ownership to 46% and further enhancing integrated fuel position and provides
Slide 6: Customer segment highlights
Customer segment highlights — a foundational year as Genesis puts the customer at the forefront of everything we do The acquisition of the bottled gas business of Nova Energy y__ fal FI B + was a key highlight for Genesis in FY17 y highlig 5 on y uys — Delivers scale in a growing market with higher
Slide 7: LPG acquisition ownership transition timeline
Aug Sep Oct Nov Dec Q1 18 Ownership Transition Post transition 1 August, Nova LPG staff transfer to Genesis 1 August, Genesis Energy take control of operational Finance systems 4th September LPG customers transition to Genesis brand (billing and call centre ) Mass Market customers migrated Billing s
Slide 8: Wholesale segment highlights
Wholesale segment highlights — mixed hydrological conditions demonstrated benefit of diverse generation portfolio * Wet and warm for most of FY17 led to suppressed NEW ZEALAND DAILY STORAGE spot prices ($61/MWh) with thermal generation down — 4,500 19% and total generation down 5% 300 * Conditions c
Slide 9: Kupe segment highlights
Kupe segment highlights — gas production levels remain strong at 85% of maximum capacity * Underlying performance down due to FY17 oil sales hedged at an average of US$56/bbI relative to FY16 average of US$78/bbl * LPG production limited by corrosion rectification and compression system repairs * Re
Slide 10: Health & Safety
Health & Safety — zero harm is our commitment * Our rigorous focus on health and safety has translated into tangible outcomes with our TRIFR remaining at sector-leading levels * No serious or lost time incidents in past 12 months Staylive, an important forum for industry collaboration and learnings,
Slide 11: Financial Results
Slide 12: FY17 financial highlights
FY17 financial highlights — EBITDAF delivered ahead of guidance FY17 EBITDAF “Bases similar to FY16 as subdued wholesale market conditions offset by retail growth, strong cost control and acquisitions TOTAL DIVIDENDS § 12F higher cps than FY16 representing 84% of free cash flow with 80% imputation R
Slide 13: EBITDAF FY17 vs FY16
EBITDAF FY17 vs FY16 — transformation activities deliver value in subdued wholesale market conditions FY17 vs FY16 EBITDAF Underlying Business Activities Acquisition and Restructuring Activities $ MILLIONS | | ) \ [ ; \ [ Vt | oe — 3 8 2 6 s 9 , LJ 9 18 335 333 ™) Favourable Mill Unfavourable FY16 E
Slide 14: Operating expenses
Operating expenses — continual drive for efficiency . oo . . OPERATING EXPENSES * Reduction of $31 million in underlying operating expenses $ MILLIONS over the past 5 years 350 * $8 million of cost savings in FY17 mainly from wholesale operational efficiencies, lower emissions and reduced 500 headco
Slide 15: Cash flow
Cash flow — free cash flow stable in line with earnings * Investing cash flow $378 million increased due to purchase of additional 15% of Kupe and the Nova Energy retail LPG business * Financing cash flow movement reflects proceeds from borrowings used to support acquisitions * Operating cash flow m
Slide 16: Capital expenditure
Capital expenditure — discipline in capital spend despite growth ambitions * $47m capital expenditure within guidance of $45 to $55 Paillion CAPITAL EXPENDITURE AT P P A $ MILLIONS * $39 million stay-in-business projects: - Huntly Unit 5 maintenance - Upgrade of EOL billing platform 105 - Hydro plan
Slide 17: Capital structure
Capital structure — longer tenure debt in place at lower cost, S&P credit rating reaffirmed * Average cost of debt down 80 basis points whilst tenure up Debt Information FY17 FY16 Variance 3.9 years ($m) ($m) ($m) * $100 million of new 8-year wholesale bonds issued at 5.0% ee an + Equival : on ae a
Slide 18: Dividends
Dividends — continued growth in dividends DIVIDEND & PAYOUT HISTORY + Final dividend of 8.4 cps 200 400% - 80% imputation 480 0% a1% or 84% 90% - Supplementary dividend of 1.1859cps to non-resident 2 1460 ° 80% shareholders 2 13% ° ‘E 140 70% * FY17 total dividends of 16.6 cps, up 1.2% on FY16, 2 a
Slide 19: Marc England, Chief Executive
. ¥ Lydia Genet Mare England “ - i > 4 Local Energy Project community liaison CHIEF EXECUTIVE -
Slide 20: What we said and how far we have come
What we said and how far we have come — we are well on the way but have much more to do From To Overall focus ——_—— >> Sourcing, generating and supplying electrons and molecules to customers Consumer obsessed and driver of shareholder value Generation —_—_—_— >> A strong operator of assets Avalue fo
Slide 21: Strategy update
Strategy update REIMAGINING ENERGY to put control in our customers’ hands Core Strategic Initiatives ) @& Foundation investments in technology & digital Enabling . _ Initiatives Embed data-driven decisions x ri Ways of working FY17 21
Slide 22: Target to deliver $400-430 million by FY21 and top quartile TSR
— target to deliver $400 - 430 million by FY21 and top quartile TSR FY17 Results Presentation
Slide 23: FY18 Actions
FY18 Actions • • • • • • • • • • • • • • • •
Slide 24: Funding required for growth
Funding required for growth — further investment required to deliver sustainable EBITDAF growth * Improved asset management insights and risk assessments has enabled the reallocation of capital between stay in business and growth investments * FY18 operational investment to drive growth of $15-20 mi
Slide 25: FY18 guidance
FY18 guidance — FY18 sees the transformation journey continue * FY18 EBITDAF is expected to be in the range of $345 to $365 million subject to any material events, one-off expenses or other unforeseeable circumstances. Key assumptions include: — Average hydrological conditions with generation 6,700
Slide 26: Thank You
Richard and Angela Espley Genesis dual fuel customers
Slide 27: Competitive Advantage
Competitive Advantage Divider slide to come based on annual report photos ____ ____ Chief Executive
Slide 28: Financial statements
Financial statements FY17 Income Statement FY17 FY16 —- Variance Balance Sheet FY17 FY16 Variance ($m) ($m) ($m) ($m) Revenue 14,9511 2,011.3 (3.0%) Cash and Cash Equivalents 27.8 34.9 Total Operating Expenses (1,618.6) (1,676.0) 3.4% Other Current Assets 344.2 296.9 EBITDAF 332.5 335.3 (0.8%) Non-C
Slide 29: Reconciliation of EBITDAF to NPAT
Reconciliation of EBITDAF to NPAT FY17 EBITDAF is a non-GAAP item but is used as a key metric by management to monitor performance at a business segment and group level Genesis Energy believes that reporting EBITDAF assists stakeholders and investors in understanding the Company’s operational perfor
Slide 30: Operational highlights
Operational highlights Customer Key Information FY17 FY16 Variance EBITDAF ($ millions) 109.6 102.7 6.7% Electricity Only Customers 350,869 371,758 Gas Only Customers 18,439 19,782 LPG Only Customers 28,018 4,376 Customers with > 1 Product 113,304 99,958 Total Customers’ 510,630 495,874 3.0% Volume
Slide 31: Chief Executive
____ ____ Chief Executive
Slide 32: Operational excellence & value optimisation
Operational excellence & value optimisation — delivering best in class cost to serve and optimising value FY17 Actions Customer Y Streamlining the “customer join” experience, assisted by investment in customer relationship management and phone systems Vv Restructure of customer experience team to en
Slide 33: Increase value share of residential category
Increase value share of residential category — through differentiated products, loyalty rewards and portfolio optimisation FY17 Actions FY17: $8m delivered! X Customer losses higher than expected following Bele a8 Eovitalaiing| aust $9 ~ $14m value optimisation Key Metrics Y rei Fly Buys with >120,0
Slide 34: Targeted growth in business category
Targeted growth in business category — growing customers and volumes in the business category FY17 Actions VY Set up dedicated regional field sales force with 8 FTE recruited into 2 teams — SME and agribusiness Y Optimised pricing across the customer base including new pricing plans and more immedia
Slide 35: Grow LPG category
Grow LPG category —a higher margin fuel, with greater growth prospects and lower churn FY17 Actions FY17: $1m delivered! Y Acquisition of the Nova Energy retail LPG operation Bele a8 Eovitalaiing| aust $6 - $10m accelerates capabilities with integration a key focus Y New bottled gas smart plan and S
Slide 36: Build energy services
Build energy services — delivery of comfort, convenience and control to customers FY17 Actions FY17: $Om delivered! VY Launch Local Energy Project (LEP) community in South Wairarapa with 200+ customers Y Established digital development capability Key Metrics to FY21: Remaining target $2 - $3m . FY16
Slide 37: Competitive Advantages
Slide 38: FY17 Results Presentation
Results FY17 38 Presentation
Slide 39: Products on one technology platform
3 products on one technology platform — delivering a cohesive customer experience with 3 products on one platform 18% 17% 14% 11% [| [| i: Electricity Natural Gas NaturalGas LPG Only LPG Dual Only Only Dual Fuel Fuel lower customer churn lower operating cost structure one stop shop for customer need
Slide 40: Ensuring security of supply
CS Ensuring security of supply — supporting New Zealand’s high level of renewable energy through thermal capacity ©) largest and most flexible thermal site well located to population demand with future consents in place thermal players v reducing increasing * relevance of remaining players NZ needs
Slide 41: An integrated fuel position
Ce An integrated fuel position — creating value through an integrated and diverse fuel position capture enables enables full value priority optimisation chain on all fuels thermal position of supply chain & production assets three catchments ‘or ro combine: reater supports wih thermal - 3 fuel with
Slide 42: Agile culture
CS Agile culture — delivering innovation through an agile culture and leading change A puts a start up ° speed customer rapidly evolving and at ce ntre competitive environment of designing new approaches to energy management A tec hnolos in embracing (e) harnessing ecnnology unpredictability innovat
Slide 43: Thank You
Thank You