Genesis Energy Limited · NZX:GNE
Genesis Energy — Shareholder Meeting (October 2014)
35 slides from Genesis Energy's shareholder meeting presentation, Oct 28, 2014
Slide 1: Chairman's Presentation - Annual Shareholder Meeting
Genesis Energy Annual Shareholder Meeting 28 October 2014 |1 Dame Jenny Shipley, Chairman [Slide 1: Title – Annual Shareholder Meeting] Kia ora koutou katao. Haere mai ke tenei hui motouhake For personal use only Good afternoon ladies and gentlemen. My name is Jenny Shipley and I am the Chairman of
Slide 2: Your Board (Chairman's address)
Genesis Energy Annual Shareholder Meeting 28 October 2014 |2 Her current directorships include the TradeMe Group, Kiwi Income Property Trust, Partners Life and The Co-operative Bank. Joanna chairs our Audit and Risk Committee and very ably chaired the Due Diligence committee during the recent IPO. [
Slide 3: Your Board and Agenda (Chairman's address)
Genesis Energy Annual Shareholder Meeting 28 October 2014 |3 [Camera on Doug McKay] Doug McKay also joined the Genesis Energy Board in June this year. Doug is an experienced commercial executive and director. Doug began his career with Procter and Gamble and has been chief executive at a number of s
Slide 4: Agenda and meeting process
Genesis Energy Annual Shareholder Meeting 28 October 2014 |4 As your Chairman I will then provide an overview of the Company’s performance and then our CEO Albert Brantley will take you through our financial and business performance for the year ended 30 June 2014. We’ll then take your questions con
Slide 5: Chairman's address: asset portfolio and retail brands
Genesis Energy Annual Shareholder Meeting 28 October 2014 |5 Over recent years we have created a better balanced asset portfolio that is fully optimised to support a customer-focused retailer with our two strong brands – Genesis Energy and Energy Online. Our retail brands supply electricity, natural
Slide 6: Chairman's address: year's operational developments
Genesis Energy Annual Shareholder Meeting 28 October 2014 |6 3. This work was completed ahead of schedule and under budget. Further, this was achieved with no lost time injuries or major incidents recorded a fact which we are very proud of. 4. At the end of December 2013 a second 250 megawatt Rankin
Slide 7: Chairman's address: customer retention and churn
Genesis Energy Annual Shareholder Meeting 28 October 2014 |7 This is a key priority for the Board and Management team and I’m pleased to say we have achieved some great results and we expect this to continue. At the Annual Results briefings in August we discussed our concern with the relatively high
Slide 8: Annual Shareholders' Meeting October 2014
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only GENESIS ENERGY Annual Shareholders’ Meeting 28 October 2014
Slide 9: Your Board
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only YOUR BOARD A wide range of professional and commercial experience ― Dame Jenny Shipley, Chairman, DNZM ― Rukumoana Schaafhausen ― Joanna Perry, Deputy Chairman, MNZM ― Mark Cross ― John Dell ― Doug McKay ― John Leuchars ― Andrew Cleme
Slide 10: The Agenda
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only THE AGENDA ― Introduction ― Chairman’s Overview of Results for FY2014 ― Chief Executive’s Report ― Questions ― Resolutions and Voting ― Afternoon Tea
Slide 11: Your Company
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only YOUR COMPANY NEW ZEALAND’S LARGEST RETAILER 1 OF ELECTRICTY AND GAS DIVERSE AND FLEXIBLE 2 ELECTRITY GENERATION OIL AND GAS 3 DIVERSIFICATION
Slide 12: Highlights
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only HIGHLIGHTS Listed on the NZX and ASX on 17 April 2014 • Welcomed 68,000 new investors on first day of trading • Delivered great service to our customers, both large and small • Completed major remediation work on Tekapo Canal • Placed
Slide 13: Meeting the Challenges
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only MEETING THE CHALLENGES The Company demonstrated its resilience to market challenges ― Abundance of water in hydro schemes ― Warmer weather ― Addition of new renewables ― Reduced thermal generation ― Increasing retail competition ― Low
Slide 14: Progress
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only PROGRESS Successfully pursuing a strategy of diversification and customer focus ― Outstanding improvements in Health and Safety performance ― Focus on delivering simplified customer service and competitive products ― Identified opport
Slide 15: 2014 Highlights
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only 2014 HIGHLIGHTS Albert Brantley Chief Executive 8
Slide 16: Your Executive Team
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only YOUR EXECUTIVE TEAM
Slide 17: Electricity Customers
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only ELECTRICITY CUSTOMERS • Genesis Energy maintains its position as New Zealand’s largest electricity retailer Electricity Sales Volumes (GWh) Quarterly TOU Sales Volumes Quarterly Mass Market Sales Volumes • Total electricity customers
Slide 18: Gas Customers
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING Natural Gas Customers and Market Share For personal use only Customer Numbers Share of Total Market (RHS) 120,000 45.0% 44.0% 115,000 43.0% 42.0% 110,000 41.0% Customers by ICP Market Share 105,000 40.0% 39.0% 100,000 38.0% 37.0% 95,000 36.0% GAS CUSTOMERS
Slide 19: Generation Performance
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only GENERATION PERFORMANCE Total Generation down 11% vs FY2013 to 6,427 GWh, 4% Annual Generation Profile 9,000 lower than PFI as a result of: 8,000 Hau Nui Wind • A wetter end to the year resulting in reduced opportunity 7,000 Tekapo A &
Slide 20: Tekapo Canal
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only TEKAPO CANAL Work on the remediation of Tekapo Canal concluded in FY2014 • No lost time injuries over 224,000 man hours of work, over two seasons • Estimated $11.5m impact on FY2014 EBITDAF • Total capital expenditure of $136m • Below
Slide 21: Kupe
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING KUPE For personal use only Kupe continues to be a consistent source of earnings • Natural gas, oil and LPG volumes all up on FY2013 and compared to PFI, reflecting: • Higher export oil prices • Opportunities to accelerate gas offtake Kupe Oil Production Vo
Slide 22: Health and Safety
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only HEALTH AND SAFETY The safety of our employees and workplace remains a Genesis Energy Safety Statistics priority Total Recordable Injuries 12 Month Rolling Total Recordable Incident Frequency Rate (RHS) 10 30 • Genesis Energy is commit
Slide 23: Our People and Our Communities
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only OUR PEOPLE AND OUR COMMUNITIES Community investment is aligned to our business activity ― Strong relationship with iwi in each generation community ― Premier programme – Schoolgen – grows to 66 schools ― Whio Forever partnership with
Slide 24: Results Summary
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only RESULTS SUMMARY EBITDAF, NPAT, free cash flow (FCF), dividends and net debt were all better than the PFI ― EBITDAF of $307.8m down 9% on FY2013 ― But 1% ahead of PFI ― NPAT of $49.2m was down 53% on FY2013 ― But 18% higher than PFI 17
Slide 25: Segmental Detail
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only Genesis Energy Contribution to EBITDAF $500m $400m Oil & Gas $300m EBITDAF $m Customer Experience EBITDAF $200m Energy Management $100m Corporate $0m SEGMENTAL DETAIL -$100m FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Source: Genesis En
Slide 26: Balance Sheet
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only BALANCE SHEET • Net debt remains within the range of $950m to $1,000m • Despite increased dividend and capital expenditure Total Assets and Gearing associated with Tekapo Canal remediation 4,000 Total Assets Gearing* 45% • Gearing is
Slide 27: Dividends
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING For personal use only DIVIDENDS • Final dividend of 6.6 cps takes total dividends declared in FY2014 to 13cps • 14% ahead of FY2013 • 2% ahead of PFI • Dividend policy remains unchanged Intention is to pay a dividend that provides shareholders with a consi
Slide 28: Outlook
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING Download the new For personal use only Genesis Energy Investor App OUTLOOK • In the face of challenging retail and wholesale electricity markets, Genesis Energy has delivered FY2014 results better than the April 2014 PFI • Continuation of heightened retail
Slide 29: Chief Executive's address: Highlights and executive team
Genesis Energy Annual Shareholder Meeting 28 October 2014 Albert Brantley, Chief Executive [Slide 8: Title – Highlights] Thank you Dame Jenny and good afternoon everyone. For personal use only Once again, a warm welcome to you all to our first Annual Shareholders’ Meeting and welcome also to those w
Slide 30: Chief Executive's address: Electricity customers
Genesis Energy Annual Shareholder Meeting 28 October 2014 [Slide 10: Title – Electricity Customers] We have maintained our position as New Zealand’s largest electricity retailer with a 26% market share of all electricity accounts. The retail electricity market continues to be extremely competitive,
Slide 31: Chief Executive's address: Generation performance
Genesis Energy Annual Shareholder Meeting 28 October 2014 [Slide 12: Title – Generation Performance] Turning now to the performance of our Energy Management Division. Total generation across our thermal and renewable fleet was down 11% in 2014 compared to last year, which was also 4% lower than the
Slide 32: Chief Executive's address: Kupe and health and safety
Genesis Energy Annual Shareholder Meeting 28 October 2014 extend the life of the field or the level of production, but any decisions around field development and future capital expenditure are not likely to be made in the short term. [Slide 15: Title – Health and Safety] Dame Jenny spoke earlier abo
Slide 33: Chief Executive's address: Results summary and segments
Genesis Energy Annual Shareholder Meeting 28 October 2014 [Slide 17: Title – Results Summary] As Dame Jenny has mentioned, we are pleased to report that EBITDAF, NPAT, free cash flow, dividends and net debt were all better than the estimates in the PFI. EBITDAF of $307.8 million was 1% ahead of the
Slide 34: Chief Executive's address: Dividends and outlook
Genesis Energy Annual Shareholder Meeting 28 October 2014 [Slide 20: Title – Dividends] Dame Jenny has already indicated that our final dividend of 6.6 cents per share brings the total dividend declared in 2014 to 13 cents per share, which is 12% higher than last year and 2% higher than the PFI. For
Slide 35: Market Release - Annual Shareholder Meeting Presentations
For personal use only MARKET RELEASE Date: 28 October 2014 Release: Immediate Genesis Energy Limited (GNE) – Annual Shareholder Meeting Presentations Genesis Energy’s Annual Shareholder Meeting will be held today, 28 October 2014, at 2.00pm, at the Ellerslie Events Centre in Auckland, New Zealand. P