Good Energy — FY2022 Earnings Presentation
35 slides from Good Energy's earnings presentation, Mar 28, 2023
Slide 1: Good Energy Group plc Preliminary results
Good Energy Group plc Preliminary results 12 months to 31 December 2022 28 March 2023
Slide 2: Agenda
Agenda Agenda Overview Nigel Pocklington, CEO 4 Financial performance Rupert Sanderson, CFO 6 Strategic update Nigel Pocklington, CEO 16 Q&A Nigel Pocklington, CEO Rupert Sanderson, CFO 2 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 3: Overview
Overview Nigel Pocklington CEO 3 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 4: Our transition to a green energy services company
Our transition to a green energy services company Sale of 47.5MW generation asset portfolio Completed Series A fundraise to scale Zap-Map Acquired installation business – heat and solar Launched innovative new tariffs for solar users Strong balance sheet Investing in high growth markets Helping more
Slide 5: Financial performance
Financial performance Rupert Sanderson CFO 5 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 6: Delivering stability in a volatile market
Financial Performance Delivering stability in a volatile market Revenue growth £m Baseline* ZAPMAP FY 22 Revenue Revenue growth of £100m, up 70% versus 2021 248.6 0.6 249.2 Cost of Sales (218.9) (0.2) (219.1) Pricing driven by increased wholesale price Gross Profit 29.7 0.5 30.1 Commodity prices
Slide 7: PBT development – FY 2022
Financial Performance PBT development – FY 2022 Margin upside returning supply earnings to normalised position post 2021 pressures. Revaluation of Zap-Map investment post Series A fund rise provides £7m P&L upside £m Movement 7 Preliminary Results | © 2023 Good Energy. Private & Confidential Data po
Slide 8: Cashflow statement
Financial Performance Cashflow statement Strong operational performance in a difficult market Year End £(000)s FY 2022 FY 2021 Operational cashflows before working capital 2,799 £3,991 Underlying £6m of cash generated from operations Working Capital movement 2,964 -£93 Cash generated from operatio
Slide 9: Cashflow and collections remain robust
Financial Performance Cashflow and collections remain robust Cash and collections • Significant improvement in collections year on year • H1 22 up 72% (vs H1 21) and H2 up 88% (vs H1 21) • H2 22 includes £27m of Government bill support schemes Customer base • Price rises across domestic and busi
Slide 10: Active planning for changes in commodity market conditions
Financial Performance Active planning for changes in commodity market conditions Actively executed winter 2022 trading and risk mitigation as planned Continue to monitor and manage hedge position despite ever changing trading environment Well hedged for summer 2023 Fuel mix continually monit
Slide 11: Value upside through a sum of the parts approach
Financial Performance Value upside through a sum of the parts approach £m % of market cap Net available cash* 22.7 73.5% Net cash + Zap-Map 35.8 116.0% Valuation further supported by Energy services Installation, service and related home energy technology growth Renewable supply Profitable energy su
Slide 12: Capital allocation
Financial performance Capital allocation Debt free with strong available cash balance of £24.5m Further M&A in energy services Invest in services and transport product development Dividend of 2.0p final dividend (2021:1.8p), alongside interim 0.75p paid 12 Preliminary Results | © 2023 Good E
Slide 13: Strategic update
Strategic update Nigel Pocklington CEO 13 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 14: We have a clear strategic vision
We have a clear strategic vision To support one million homes and businesses cut carbon from their energy and transport use by 2025. Powering a cleaner, greener, world. We make it simple to generate, share, store, use and travel by clean power. 14 Preliminary Results | © 2023 Good Energy. Private &
Slide 15: Aligning the business to our strategic vision
Strategic update Aligning the business to our strategic vision Services and tariffs for domestic and small generators Energy Solar and Heat Transport Installation of solar, battery storage and heat pumps services generation High growth market Active M&A to acquire further capabilities Fairly pr
Slide 16: Energy services - a £5bn to £10bn addressable market opportunity
Strategic update Energy services - a £5bn to £10bn addressable market opportunity Market EBITDA Working capital growth margin intensity Energy 10 – 20% 10 – 20% Low services Energy supply 0% 1 - 3% High 16 Preliminary Results | © 2023 Good Energy. Private & Confidential Customer segmentation analysi
Slide 17: Solar and generation
Solar and generation 17 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 18: Return to market highs driving sustained solar market growth
Strategic update Return to market highs driving sustained solar market growth 2022 install rate: +125% 18 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 19: The go-to company for solar
Strategic update The go-to company for solar Product innovation • A smart export for our Feed-in Tariff (FiT) customers • Pays a fair price for excess electricity put onto the grid • Roll out to 80k customers in 2023 Power for Good • Power for Good domestic and business export tariff • Open to custo
Slide 20: Scaling solar and energy services
Strategic update Scaling solar and energy services Installation capability Targeted growth First installs completed by Significant national in house team demand from own customer base Leveraging Good M&A Energy credentials Regional roll up in Brand, trust and reputation fragmented market to in renew
Slide 21: Heat
Heat 21 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 22: Tipping point in heat installs, but more needed to be done
Strategic update Tipping point in heat installs, but more needed to be done 2 year CAGR: 35% 22 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 23: Heat pump installations underway and growing
Strategic update Heat pump installations underway and growing Growth Installations Focused on existing Target of c.60k domestic supply 500 heat pump installations in customer base 2023 Future ambition to target 1.5m boiler replacement Capacity for 12k per year by market 2026 Services to improve user
Slide 24: Transport
Transport 24 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 25: Zap Map retains its position in the high growth electric vehicle market
Strategic update Zap Map retains its position in the high growth electric vehicle market Market EV growth Over 1.1m total EVs Battery EV growth 64% to 700k App growth Over 1m app downloads 550k+ registered users Registered user growth 2022: 63% 2-year CAGR: 83% 25 Preliminary Results |
Slide 26: Zap–Map: Building scale and recurring revenue
Strategic update Zap–Map: Building scale and recurring revenue Growth App: Free users App: Premium users The widest choice, Added-value charging features on the best data, the simple way to mobile and in-car x2 revenue growth to £1m+ in pay 2022, 2023 revenue forecast Monetisation Monetisation to
Slide 27: Renewable supply
Renewable supply 27 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 28: A reminder of what we sell at Good Energy – 100% renewable power
Strategic update A reminder of what we sell at Good Energy – 100% renewable power Domestic Business IMPORT Limited growth and Driven by pricing of PPAs price cap impact – Domestic SME HH Smart meter installation fixed v variable continuing Smaller SMEs and half hourly sites Growth FiT EXPORT Sectora
Slide 29: Near term growth pathway
Strategic update Near term growth pathway 2023 Growth Roll out of solar services to our existing client base Roll out of solar and heat pump installations Acquire more capacity to accelerate services strategy faster Drive uptake of new tariffs to maximise our customer base and potential cust
Slide 30: Q&A
Q&A 30 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 31: Appendices
Appendices 31 Preliminary Results | © 2023 Good Energy. Private & Confidential
Slide 32: Customer numbers & volumes
Financial performance Customer numbers & volumes Total customer numbers decreased by 2% Gas supply volumes significantly down year on year reflecting the a warm 2022 Business customer demand increased electricity supply volumes (2021 191 GWh, 2022 248 GWh) FiT customer numbers continued thei
Slide 33: Balance Sheet statement
Financial Performance Balance Sheet statement Year End £m FY 2022 FY 2021 Total Non-Current Assets £16.7 £5.1 Balance sheet significant restructured Inventories & Receivables £66.0 £43.6 Restricted Deposit Accounts £8.5 £2.4 Generation assets now sold Cash & Cash Equivalents £24.5 £6.7 Non-curre
Slide 34: Zap – Map: valuation impact
Financial Performance Zap – Map: valuation impact Series A raised with Fleetcor • £9m raised at a £26.3m post money valuation • GE shareholding 49.9%, Fleetcor 19.99% • GE total investment to date of £5.8m Accounting impact • Deconsolidated from financial statements • £7m profit recognised in 20
Slide 35: Disclaimer
Disclaimer The content of this document has not been approved by an authorised person within the The information contained in this document is provided as at the date hereof and is subject This document contains inside information. By accepting this document and attending the meaning of the Financia