Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (June 2023)
27 slides from Genie Energy's investor presentation, Jun 7, 2023
Slide 1: Genie Energy Ltd Investor Presentation June 2023
Genie Energy Ltd (NYSE: GNE) Investor Presentation June 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 of
Slide 3: Genie Energy At A Glance
3 Genie Energy At A Glance $15.7M 2022 Stock Repurchased Genie Energy Ltd. Genie Retail Energy (GRE) Genie Renewables (GREW) Genie is a leading provider of electricity, natural gas and green energy to retail and commercial customers in the U . S . $335M TTM Revenue $68M TTM Adj. EBITDA*** $1.97 TTM
Slide 4: Track Record of Driving Shareholder Returns
4 Track Record of Driving Shareholder Returns Most Recent Market Value * Market Value @9/14/09 Company $369M 10/28/11 (Spin - off) Genie Energy (NYSE: GNE) $806M $53M IDT Corp (NYSE: IDT) $7M 9/14/09 (Spin - off) IDW Media (NYSE American: IDW) $2,164M (sold to VZ 2/18) 7/31/13 (Spin - off) Straight
Slide 5: Investment Highlights
Investment Highlights 5 Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility
Slide 6: Large Market Opportunity
LARGE MARKET OPPORTUNITY
Slide 7: Our Opportunity: Selling Electricity & Natural Gas in De-Regulated U.S. Markets
Our Opportunity: Selling Electricity & Natural Gas in De - Regulated U.S. Markets… • GRE has a presence in 18/28 states + Washington D.C. • Additional states considering de - regulation in various forms 7
Slide 8: ...And in Developing, Owning & Operating Solar Farms
8 …And in Developing, Owning & Operating Solar Farms *Solar Energy Industry Association Commercial >600K Commercial Facilities 1% Penetration Utility Components Shortages due to global supply chain issues Community 8X DOE Est. Growth thru 2025 Favorable Regulatory Environment “ In the next half deca
Slide 9: Attractive Growth Profile
ATTRACTIVE GROWTH PROFILE
Slide 10: Our Organic Growth Strategy is...
Our Organic Growth Strategy is… 10 Retail • Take share in existing markets • Opportunistically expand retail book geographically • Introduce new products • Focus on customer retention to manage churn Solar • Develop, own & operate solar farms • Differentiate solar through vertical integration
Slide 11: ...Complemented by Inorganic Growth
…Complemented by Inorganic Growth 01 Retail Acquisitions – customer books or companies 02 Direct purchase & development of solar farms by GREW 03 General Partner for Sunlight Energy Investments - owned solar farms 04 Acquire new renewable technologies 11
Slide 12: Attractive Financial Returns
Attractive Financial Returns Targeted payback period tailored to product & customer type How We Grow in Retail Multiple sales channels Diverse portfolio of products Deep data analysis to identify market opportunities & optimize offerings Targeted M&A Hedging strategies reduce commodity volatility ri
Slide 13: How We Grow in Solar: Vertical Integration
How We Grow in Solar: Vertical Integration 13 GREW Genie Solar Originate, design, C&I Designs/manufactures solar panels w/non - China operations (no supply chain issues) Customer acquisition, billing & management services Diversegy - complementary sales channels Sunlight Energy Investments (SEI) Inv
Slide 14: Portfolio and Risk Management
PORTFOLIO AND RISK MANAGEMENT
Slide 15: Hedging Program Provides Portfolio Optionality
» Hedged customer book heading into colder months » Long Energy in U.S. and Europe 2H21 » UK energy market disintegrates » Exited UK - still returned cash to U.S. Global Events: Energy Crisis in Europe » Long Energy » Portfolio management of low margin customers in U.S. drives strong margins GRE » L
Slide 16: Financial Summary
FINANCIAL SUMMARY
Slide 17: GNE: Significant Margin Expansion and Adj. EBITDA Growth
17 GNE: Significant Margin Expansion and Adj. EBITDA Growth * 25% 30% 35% 40% 45% 50% 55% $0 $50 $100 $150 $200 $250 $300 $350 2021 2022 TTM Revenue Operating Income Adj. EBITDA Gross Margin $m $400 2019 2020 *Pro forma excluding the impact of Texas Winter Storm Uri, GREI a/o 3/31/23. Please see rec
Slide 18: Driven by GRE Strength
Driven by GRE Strength* 18 25% 30% 35% 40% 45% 50% 55% 60% $0 $50 $100 $150 $200 $250 $300 2019 2020 2021 2022 TTM Revenue Op. Inc. Adj. EBITDA Gross Margin $m $350 *Pro forma excluding the impact of Texas Winter Storm Uri operations a/o 3/31/23 Please see reconciliations in Appendix
Slide 19: GREW Positioning for Future Growth
GREW Positioning for Future Growth * 19 0% 5% 10% 15% 20% 25% 30% 35% 40% - $5 $5 $15 $25 2019 2020 2021 2022 TTM Revenue Op. Inc. Adj. EBITDA Gross Margin $m $35 * Please see reconciliations in Appendix 2022+ » Evaluating and acquiring potential projects » Formed Sunlight Energy Investments » Expan
Slide 20: Strong Balance Sheet Provides Optionality
Strong Balance Sheet Provides Optionality * 20 * As of 3/31/23 $0.0 $114.0 $142.0 $293.0 Debt Cash Working Capital Total Assets
Slide 21: Capital Allocation Strategy Drives Shareholder Returns
Capital Allocation Strategy Drives Shareholder Returns 21 Common (currentl stock dividend y $0.075/quarter) Common Stock Preferred Stock ( redeemed on 6/ to be fully - 15/23) nities for outsized potential (e.g. Opportu growth Solar) S elect M&A Retail Customer a New retail marke New retail produc cq
Slide 22: Summary
Summary 22 Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility
Slide 23: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Senior Managing Director Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
Slide 24: Appendix: Pro-forma Financials
APPENDIX: *Pro - forma Financials • Pro - forma excluding the impact of Texas Winter Storm Uri in 2021 and Genie Japan dated Genie Consoli TTM 2022 2021 2020 2019 $ (000's) $321,500 $303,970 $311,830 $304,450 $286,610 Revenue GRE $13,390 $11,570 $7,510 $25,210 $12,090 GREW $334,890 $315,540 $319,340
Slide 25: Reconciliation Tables - Genie Energy Financials Consolidated
Reconciliation Tables Slides 17,24 – Genie Energy Financials - Consolidated TTM 2022 2021 2020 2019 $334,890 -- - $315,540 - - - $323,270 $3,930 $338,430 $8,770 $300,100 $1,400 Consolidated revenue (as reported) Less: Revenue of Genie Japan $334,890 $315,540 $319,340 $329,660 $298,700 Pro forma cons
Slide 26: Reconciliation Tables - GRE Financial Highlights
26 Reconciliation Tables Slides 18 – GRE Financial Highlights $321,500 $303,970 $311,830 $304,450 $286,610 GRE revenue (as reported) $138,940 $152,980 $90,880 $88,310 $80,620 GRE gross profit (as reported) -- - -- - ($10,000) -- - -- - Less Gross profit (loss) from Winter Storm Uri $138,940 $152,980
Slide 27: Reconciliation Tables - GREW Financial Highlights
27 Reconciliation Tables Slides 19 – GREW Financial Highlights TTM 2022 2021 2020 2019 ($2,610) ($3,130) $250 ($2,570) ($2,890) Income (Loss) from Operations Add Back: - - - -- - -- - -- - -- - Non - Cash Compensation $50 $50 $50 $330 $1,010 Depreciation & Amortization - - - -- - -- - $1,400 $400 Im