Good Energy — H1 2018 Earnings Presentation
26 slides from Good Energy's earnings presentation, Sep 10, 2018
Slide 1: Good Energy Group plc 2018 Interim financial results
Good Energy Group plc 2018 Interim financial results
Slide 2: Disclaimer
Disclaimer The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this document for the purpose of engaging in any investment activity may expose an individual to a significant risk of losingall of the
Slide 3: Today's Agenda
Today’s Agenda Highlights Financial performance Strategic and operational performance Q&A Good Eneray ©2017 - Private & confidential 10 September 2018
Slide 4: Highlights
Highlights v7, -@- aa o'r hm - FOCCCCCCCCCN f fen i
Slide 5: H1 performance
H1 performance * Strong first half despite challenging market conditions « Performance driven by supply volumes and extreme weather conditions in February and March « Price rises implemented earlier in the year due to rising commodity price environment * Customer numbers remain flat while retention
Slide 6: Highlights of H1 2018
Highlights of H1 2018 Revenue 80m 60m £400 20m Oo, +19% som 20% «M20 HO HIZO” 208 Revenue driven by supply volumes and YoY extreme weather conditions Gross Profit 30m 20m 10m won +28% i204 i205 12016 HI207 i208 driven by gas volumes and the YoY implementation of domestic price rise Good Eneray ©2017
Slide 7: Financial results
Financial results Wie 2 E
Slide 8: Strong performance in a challenging market
Strong performance in a challenging market H1 2018 H1 2017 H1 2018 - H1 • Year end £000s continued continued 2017 operations operations % change Revenue 61,820 52,038 18.8% Cost of Sales (43,414) (37,633) 15.4% • Gross Profit 18,406 14,405 27.8% Administration Costs (13,780) (11,368) 21.2% Operating
Slide 9: Rising wholesale commodity prices
Rising wholesale commodity prices • • • • •
Slide 10: Strong operational cash flows and improved billing
Strong operational cash flows and improved billing Year end £000s H1 2018 H1 2017 • Operational cashflows before working capital 6,408 4,077 Working capital movement (1,949) (10,013) Cash generated from operations 4,460 (5,936) • Finance and tax cost (2,106) (2,510) Net cashflows from operating acti
Slide 11: Improvements in billing
Improvements in billing New billing system Increase in Operational issues • implemented. consumption and resolved, billing Operational issues see price rises driving returns to prior levels Billing fall to 60% higher overall debt at 99% • • • • •
Slide 12: Net Debt & Capital Structure
Net Debt & Capital Structure • • • • • Non- recourse • •
Slide 13: 2018 Expectations
2018 Expectations Increased investment in key growth areas in the second half of the year New Brand launch in Q3 2018 to drive customer engagement and overall awareness Expect 2018 to be a year of financial progress for the group Profit weighted towards the first half of the year Good Eneray ©2017 -
Slide 14: Strategy – 2018 & beyond
Strategy — 2018 & beyond v7, -@- aa o'r hm - FOCCCCCCCCCN f fen i
Slide 15: Strategic overview
Strategic overview OLD WORLD NEW GENERATION Generating energy Supplying energy Empowering energy Le AaB A TODAY Good Energy constants: 5 100% renewable Trusted customer experience Good Eneray ©2017 - Private & confidential 15 10 September 2018
Slide 16: Good Energy, Good position
Good Energy, Good position 10 September 2018
Slide 17: Customer – at the heart of our business
Customer – at the heart of our business Existing customers – Eco Warriors Potential customers – Eco ‘Worriers’ • A passion for sustainability, renewable energy & Good Energy • Are trying to do the right thing (if not necessarily with the • But it’s hard(er) to be good same passion/commitment). • And
Slide 18: Significant addressable market identified across supply markets
Significant addressable market Identified across supply markets Retail supply market Business supply market
Slide 19: Customer – making clean energy the natural choice
Customer – making clean energy the natural choice
Slide 20: Supply: Solid performance despite challenging environment
Supply: Solid performance despite challenging environment Performance Growth drivers • • • • • • • • • • •
Slide 21: Customer – brand promise developed to drive awareness
Customer – brand promise developed to drive awareness
Slide 22: Technology – enabler for customer engagement and growth
Technology – enabler for customer engagement and growth • • • • • • •
Slide 23: People – delivering the strategy
People – delivering the strategy Marketing IT & Digital Customer services
Slide 24: Partnerships – accelerating growth potential
Partnerships – accelerating growth potential Home Generation: Research & Home Analytics: • Development • • • • • • • • Home Comfort: Electric Vehicles • Stage-1: Products & Services: • • • Stage-2: • Stage-3: Smart Meter Energy Storage Stage-4: Products & Services: • •
Slide 25: Summary: strong performance and well positioned for future growth
Summary: strong performance and well positioned for future growth • • • • • • •
Slide 26: Q&A
Q&A