Good Energy — FY2020 Earnings Presentation
26 slides from Good Energy's earnings presentation, Apr 13, 2021
Slide 1: Good Energy Preliminary results: 31 December 2020
Good Energy Preliminary results: 31 December 2020 April 2021 1 13 April 2021
Slide 2: Agenda
Agenda Good Energy is a British renewable electricity company with a difference. For more than 20 years, our mission has been to power a cleaner, greener world. Today, that is what we are – an energy company for the future. Overview Financial performance Strategic update Summary Juliet Davenport Rup
Slide 3: 2021 notable activity
2021 notable activity 3 13 April 2021
Slide 4: Overview
Overview A positive and resilient performance despite the ongoing macro conditions impacted by COVID. Foundations in place to benefit from new energy services. Strong cash Core growth Assets Positive performance A positive financial performance from the core business despite the ongoing macro Gross
Slide 5: Financial performance
Financial performance 5 13 April 2021
Slide 6: Profit bridge 2020
Profit bridge 2020 External Internal Highlighted items COVID Generation asset portfolio Selling back excess power, reduced Initial lockdown had Prudent approach COVID demand and additional ECL material impact on revaluation and P&L impact provision to cost control macro and energy of Zap-Map consoli
Slide 7: Income statement
Income statement FY 2020 Positive performance FY 2020 FY 2020 FY 2019 % change Underlying performance of the core Year end £m Non - Underlying Reported Underlying Underlying business in line but impacted by COVID underlying Revenue 130.6 0.0 130.6 124.3 5.1% Admin costs Cost of Sales -101.1 0.0 -101
Slide 8: Cashflow statement
Cashflow statement Cash positive Year end £000s FY 2020 FY 2019 Cash generative business model with strong cash balance of £18.3m Operational cashflows before working capital 10,628 9,991 Working capital movement 797 -1,844 Investment Cash generated from operations 11,425 8,146 £7.8m cash generated
Slide 9: Net debt & funding
Net debt & funding Debt reduction Continued reduction in underlying net debt to £34.6m £m Net debt & gearing Asset revaluation 60.0 80.0% Revaluation of generation portfolio results in £13.3m 70.0% uplift to reserves. Commenced in 2019 and 50.0 competed in H1 2020 60.0% 40.0 Gearing 50.0% Gearing ra
Slide 10: Current trading, outlook and dividend
Current trading, outlook and dividend Current trading and outlook • Underlying performance is in line with management expectations • Cash collections have remained consistent and strong • Reinstated marketing, comms and test & learn expenditure from 2020’s restrictions Future growth • Foundations in
Slide 11: Strategic update
Strategic update 11 13 April 2021
Slide 12: Vertically integrated next-generation energy company
Vertically integrated next – generation energy company Good Energy is a next-generation energy company, founded on a deep green domestic offering. A strong and competitive core business, with a mature wind & solar generation portfolio, and an increasing focus on small businesses and electric mobilit
Slide 13: Building blocks in place
Building blocks in place Kraken customer service platform • Implemented for 100% of customers • Technology platform for scalable future growth • Delivering significant returns already though operating leverage Smart meters • Unlocking the potential of future energy systems • 2020: 5,100 SMETS2 smart
Slide 14: Kraken: technology platform success
Kraken: technology platform success Email response time Integration implemented successfully 80 • 100% of customer accounts migrated successfully to date 70 • Reduced headcount from the project resulted in lower staff costs of £2.7m 60 50 • On trackto deliver expected project returns Hours 40 30 20
Slide 15: Energy as a service
Energy as a service Purpose brand Helping customers make a tangible in the fight against climate change The green revolution Renewable Electrification Leader in renewable energy supply and Evolution 100% renewable services. Proven credentials as 100% Increasingly agile organization, using electricit
Slide 16: In focus: Mobility & EV
In focus Mobility & EV 16 13 April 2021
Slide 17: 'Mobility as a Service'
‘Mobility as a Service’ More access, to more energy throughout the mobility ecosystem Customer Types 1. Direct ownership 2. Decentralised fleet 3. Centralised fleet ownership ownership 100% renewable supply EVs Supply competitive green energy Match energy customers to OEMs at tailored to consumption
Slide 18: Zap-Map: charging made simple
Zap-Map : charging made simple Search 95%+ For available charging points of public points with c.70% showing live data Plan 180,000+ Longer electric journeys Registered users Share 140,000+ Updates with EV drivers cross-platform users each month Pay 130,000+ For charging on Route plans saved partici
Slide 19: Commercial milestones 2021
Commercial milestones 2021 Critical business milestones underpin investment strategy, driving customer loyalty and maintaining engaged userbase Subscriptions Zap Pay Freemium app & Continue roll out of payment subscription model solution partnering with all major launching in Q2 2021, charge point o
Slide 20: Case study: Zap flash tariff launched
Case study: Zap flash tariff launched EV drivers that want their cars to be powered by 100% renewable energy on an innovative time of use tariff Flash days Behaviour Innovative Strategic partnership Leveraging both companies core capabilities. Zap as a leading Customers incentivized to Unlike any ot
Slide 21: Summary
Summary 21 13 April 2021
Slide 22: Summary
A positive performance despite challenging market conditions. Summary Investment in key building blocks paying off, as business primed to capitalise on growth in energy and EV markets. Strong core Cash • Positive performance despite • Strong cashflow generation COVID and macro impact • Net cash posi
Slide 23: Appendix
Appendix 23 13 April 2021
Slide 24: KPIs
KPIs Revenue £m 100 98 26 94 92 90 EBITDA (£m) 2019 2020 PBT - Underlying (£m) 2019 2020 Cash and Cash Equivalents (£m) 2as 2020 450 350 Net debt (£m) 2013 200 Total Customer Meters (000's) é 3 8 Elec Supply Volume (GWh) 2018 2020 Gas Supply Volume (GWh) Carbon avoided (GWh) 2019 2020
Slide 25: Customer numbers & volumes
Customer numbers & volumes FY20 vs Supply volumes FY20 vs Customer numbers 000's Dec-19 Jun-20 Dec-20 Dec-19 Dec-20 FY19 MWh 000's FY19 Domestic Supply 91.9 88.6 84.9 -7.7% NHH 282.6 264.4 -6.4% Domestic FiT 46.7 50.0 47.2 1.1% HH 259.3 292.1 12.6% Total Domestic Customers 138.6 138.6 132.0 -4.7% To
Slide 26: 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 losing all of th