Genesis Energy Limited · NZX:GNE
Genesis Energy — Debt Investor Presentation (June 2023)
32 slides from Genesis Energy's debt investor presentation, June 2023
Slide 1: Genesis Energy Limited Green Capital Bond Offer
Genesis Energy Limited Green Capital Bond Offer June 2023 Presenters: James Spence Chief Financial Officer Dan Dillane Group Treasurer & Risk Angela Graafhuis Middle Office Manager
Slide 2: Important Information Disclaimer
Important Information Disclaimer The information in this Presentation is given in good features of the Capital Bonds, which differ from The offer (Offer) of unsecured, Genesis is subject to a disclosure faith and has been obtained from sources believed to the features of a standard senior bond. Thos
Slide 3: Agenda
Agenda 1. Green Capital Bond Highlights 2. About Genesis 3. Strategic Outlook 4. Sustainable Finance Framework 5. Financial Performance 6. Key Terms and Dates
Slide 4: Green Capital Bond Highlights
Slide 5: Offer Highlights
Offer Highlights Issuer Genesis Energy Limited. Description The Capital Bonds are unsecured, subordinated interest bearing debt securities. The Capital Bonds will be designated as green bonds in accordance with Genesis' Sustainable Finance Framework dated November 2021 (as amended from time to time)
Slide 6: About Genesis
About Genesis
Slide 7: Genesis Overview
Genesis Overview ∼481,000 6 5 KEY INFORMATION 1204 Revenue (FY22): $2.8 billion1 EBITDAF Guidance (FY23): Customers6 around $515 million2 PPA 133 • 23% electricity market share Market Capitalisation: $2.9 billion3 138 • 35% gas market share Enterprise Value: $4.2 billion4 • 23% LPG retail market sha
Slide 8: H1 FY23 Performance Highlights
H1 FY23 Performance Highlights Financial Operational Sustainability EBITDAF1 Growth in customers in H1 FY23 Carbon emissions lower by $298m 10,273 852 kt CO2e 46% decrease in total emissions relative to H1 FY22.3 488 kt CO2e of the decrease relates to Scope 1 which is associated with lower 42% incre
Slide 9: Strategic Outlook
Strategic Outlook 9. GENESIS ENERGY LIMITED GREEN CAPITAL BOND OFFER
Slide 10: An Active Enabler of New Zealand's Energy Transition
An Active Enabler of New Zealand’s Energy Transition • Genesis and its Joint Venture partner, FRV Australia are in negotiations SOLAR PIPELINE for four solar sites in the North Island with the potential capacity of around 452 MW (including Lauriston as discussed on the next slide). Advanced Early st
Slide 11: Lauriston Solar Farm Proposal
Lauriston Solar Farm Proposal • Genesis launched a Joint Venture partnership with FRV Australia in February 2022. Lauriston Solar Farm The Joint Venture announced the first project of ~ 52 MW at Lauriston that is expected to be operational in late 2024 (subject to Final Investment Decision). Locatio
Slide 12: Huntly Trial - 100% Biomass Fuel
Huntly Trial - 100% Biomass Fuel • In February 2023, Genesis completed a technical viability trial using 100% Test Result renewable biomass in the Huntly Rankine Units. Reclaim and Movement of fuel into Successful internal transfer Storage internal bunkers. with minimal spillage. Minor dust suppress
Slide 13: Sustainability and Our People
Sustainability and Our People • Carbon emissions lower by 852 kt CO2e for H1 FY23 – a 46% reduction in carbon emissions 2.0% 50:50 43:57 A low-carbon relative to H1 FY22.1 488 kt CO2e of the decrease Pay Equity Gap 3 Exec Gender Diversity 4 Senior Leader Gender FY22 1.3% FY22 50:50 Diversity 5 futur
Slide 14: Sustainable Finance Framework
Sustainable Finance Framework
Slide 15: Overview of the Sustainable Finance Framework
Overview of the Sustainable Finance Framework Established by Genesis in November 2021 • Genesis’ Sustainable Finance Framework (Sustainable Finance Framework) sets out the process by which Genesis intends to issue and manage bonds and loans (Sustainable Debt) on an ongoing basis to support Genesis’
Slide 16: Debt Linked to Sustainable Assets and Outcomes
Debt Linked to Sustainable Assets and Outcomes First NZ company to have a Framework, loan, and bond aligned to the Climate Transition Finance Handbook DECEMBER NOVEMBER/ JANUARY MARCH JUNE 2020 DECEMBER 2021 2022 2022 2022 Sustainable Finance Genesis commits to an Framework released $225m of Capital
Slide 17: Pillars of the Sustainable Finance Framework
Pillars of the Sustainable Finance Framework Management & Governance In accordance with Genesis’ Sustainable Finance Framework, Genesis intends to notionally allocate an amount equal to the Use of proceeds of its green bonds and green loans to finance or refinance renewable energy assets, or other p
Slide 18: Eligible Asset Register
Eligible Asset Register Asset Value $m Green Debt Green Debt Instrument Hydroelectricity (30 June 2022) Value $m GNE060 125 Rangipo GNE070 285 Tokaanu 1,383 GNE080 (proposed refinancing- Mangaio 2401 excluding GNE050) Tuai Total Green Debt 650 Piripaua 463 Kaitawa Total Value $m Tekapo A 971 Total E
Slide 19: External Review
External Review Pre- Genesis obtained pre-issuance verification from DNV Business Assurance Australia Pty Ltd (DNV) that concludes, in DNV’s Issuance opinion, the Sustainable Finance Framework and Eligible Asset Verification Register are aligned with the Green Bond Principles and the Climate Transit
Slide 20: Financial Performance
Financial Performance
Slide 21: H1 FY23 Financial Summary
H1 FY23 Financial Summary H1 FY23 H1 FY22 Variance % Movements $m $m $m Revenue 1,155.1 1,382.4 (227.3) (16%) q EBITDAF 298.3 210.3 88.0 42% p NPAT 145.3 84.7 60.6 72% p Operating Expenses1 156.6 144.3 12.3 9% p Free Cash Flow2 214.7 152.4 62.3 41% p Capital Expenditure 30.4 38.1 (7.7) (20%) q Inter
Slide 22: Capital Expenditure
Capital Expenditure Stay in business capital expenditure1 of $24m includes: • Investment in the Huntly units to maintain long term reliability and flexibility. 106 • Commenced the second Tuai generator refurbishment to enable 91 continued reliable generation and is expected to increase unit 81 capac
Slide 23: Debt Information
Debt Information GENESIS DEBT PROFILE AT 31 MAY 2023 Debt Information H1 FY23 FY22 Variance $m ($m) ($m) $400 Total Debt 1,434 1,493 $350 Cash and Cash Equivalents 114 106 $300 Headline Net Debt 1,320 1,387 (4.8%) $250 $200 USPP FX and FV Adjustments 12 35 $150 Adjusted Net Debt1 1,308 1,352 (3.3%)
Slide 24: Key Terms and Dates
Key Terms and Dates
Slide 25: Key Terms
Key Terms Description The Capital Bonds are unsecured, subordinated interest-bearing debt securities. The Capital Bonds will be designated as green bonds in accordance with Genesis' Sustainable Finance Framework dated November 2021 (as amended from time to time) (Sustainable Finance Framework). Offe
Slide 26: Interest Payments
Interest Payments Interest Rate The Interest Rate applying from (and including) the Issue Date to (but excluding) the first Reset Date will be the percentage rate per annum equal to the Benchmark Rate (mid-market NZD swap rate for a 5-year term, as determined on the Rate Set Date) plus the Margin (a
Slide 27: Early Redemption
Early Redemption Mandatory Redemption Genesis must redeem all the Capital Bonds on the Maturity Date or if an Event of Default occurs. Optional Early Redemption by Genesis Genesis has the right to redeem: a) all or some of the Capital Bonds on any Reset Date; b) all or some of the Capital Bonds on a
Slide 28: Key Early Redemption Drivers
Key Early Redemption Drivers Year 5 – Reset Date 10 July 2028 • Potential Election Process or Genesis can call (redeem) the Capital Bonds • Step-up in margin (0.25%) if not called or no Successful Election Process • Potential refinancing risk at year 10 if not called • Call is at par (any subsequent
Slide 29: Offer Structure
Offer Structure Bookbuild process • All Capital Bonds (including oversubscriptions) are reserved for subscription by clients of the Joint Lead Managers, institutional investors and certain other parties. • No public pool. Redemption on the first reset date of GNE050 Bonds If the bookbuild for the Of
Slide 30: Key Dates
Key Dates Opening Date Monday, 26 June 2023 Closing Date 10.30am, Thursday, 29 June 2023 Rate Set Date Thursday, 29 June 2023 Issue Date Monday, 10 July 2023 Expected Date of Initial Quotation on NZX Debt Market 1 Tuesday, 11 July 2023 10 January,10 April, 10 July and 10 October each year up to and
Slide 31: Non-GAAP Measures
Non-GAAP Measures EBITDAF (earnings before net finance expense, income tax, depreciation, depletion, amortisation, impairment, fair value changes, and other gains and losses) is a non-GAAP (generally accepted accounting practice) financial measure. It is commonly used within the electricity industry
Slide 32: Green Capital Bond Enquiries
Green Capital Bond Enquiries Dan Dillane Group Treasurer & Risk +64 21 501 235
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