Good Energy — FY2018 Earnings Presentation
23 slides from Good Energy's earnings presentation, Mar 20, 2019
Slide 1: Good Energy Group plc 2018 preliminary financial results
Good Energy Group plc 2018 preliminary financial results for the period ended 31 December 2018 20 March 2019
Slide 2: Disclaimer
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 losin
Slide 3: Agenda
Agenda Agenda Financial Operational 2019 and Highlights Juliet Davenport, performance performance beyond CEO Rupert Juliet Davenport, Juliet Davenport, Sanderson, FD CEO CEO Good Energy ©2018 – Private & confidential 3 20 March 2019
Slide 4: A sustainable, resilient business
Highlights A sustainable, resilient business - Strong performance in 2018 - Resilience to changing and difficult markets - PBT growth and good cash generation - Accelerated investment in our future strategy and technology - Strategic investment in EV data platform and energy services - Facilitating
Slide 5: 2018 key performance indicators
Highlights 2018 key performance indicators Good Energy ©2018 – Private & confidential 5 20 March 2019
Slide 6: Performance highlights
Highlights Performance highlights 2018 Deliver a Digital New Product What we said sustainable Invest in our platform for Development financial people future growth we would do performance - Executive team in - Agile operating - SMART meters - Delivered PBT model ready for rollout growth place - Sale
Slide 7: Financial summary
Financial performance Financial summary 2018 2018 2017 % change Year end £000s continued Discontinued 2018 reported continued continued Revenue operations operations operations operations - Business supply volume Revenue 116,915 9 116,923 104,509 11.9% growth Cost of Sales (84,062) 462 (83,601) (75,
Slide 8: Cashflow
Financial performance Cashflow - Cash generative business model Year end £000s 2018 2017 Operational cashflows before working capital 10,567 5,132 - £9.4m of debt repaid in the period Working capital movement 6,934 (5,106) - £15.7m cash at end of year Cash generated from operations 17,500 27 Finance
Slide 9: Rising wholesale commodity prices
Financial performance Rising wholesale commodity prices - Wholesale prices increased by over 30% in H1 2018 - Continued cost pressure across Our price rise the industry - Proactive decision taken to implement price rise earlier than usual at the beginning of 2018 - Protecting margins to reinvest in
Slide 10: Continued improvements in billing
Financial performance Continued improvements in billing New billing system Increase in Operational issues implemented. consumption and resolved, billing Operational issues see price rises driving returns to prior levels - Billing system fully operational, Billing fall to 60% higher overall debt at 9
Slide 11: Funding and debt
Financial performance Funding and debt - Paydown in net debt - Decreased 23.1% to £40.1m - Strong cash generation and bond repayment - Access to range of funding on good terms to support growth - Good Energy Bond I partially redeemed - £3.6m continuing in Bond I - Lower rate of 4.25% - £4.3m repaid
Slide 12: Financial outlook
Financial performance Financial outlook Continued Profits Progressive Financial and investment weighted to dividend strategic across the first half policy growth business Good Energy ©2018 – Private & confidential 12 20 March 2019
Slide 13: Decentralised energy
Operational performance Decentralised energy Good Energy ©2018 – Private & confidential 13 20 March 2019
Slide 14: The business model
Operational performance The business model Technology - SMART technology the foundation of a new energy world - Data empowers homes and businesses - Control, storage, EV – sharing economy People - Invest in leadership across the business - Digital and data expertise - Customer focused Partnerships -
Slide 15: Good Energy – the business
Operational performance Good Energy – the business - Established and proven - 100% renewable clean energy - Act as the intermediary for portfolio of generation customers - Growing business customer base - SMART technology the enabler - Large network of 1,400 local generators - Stable domestic custom
Slide 16: 2018 – delivery across our business
Operational performance 2018 – delivery across our business Customer Digital Marketing People services • A platform for future • New campaign • Delivering on our brand • New Executive team growth launched – just be promises now in place Good • Agile operating model • Trustpilot rating • New HQ plann
Slide 17: Strategic overview – 2019 and beyond
2019 and beyond Strategic overview – 2019 and beyond • Energy - the consumption and control of it, is shifting • Businesses and homes changing how they generate and use energy • People increasingly energy aware • SMART innovations allowing homes and businesses to track consumption • Environmental an
Slide 18: Today - Our markets
2019 and beyond Today - Our markets Competitive Focus on landscape business • Wholesale market remains volatile following • Market driven by customer services, quality significant commodity price pressure in 2018 products and sophisticated solutions • Price war and margin softness continues in • Bus
Slide 19: Today - Regulatory and political changes
2019 and beyond Today - Regulatory and political changes SVT price FIT cap scheme • Effective 1 January 2019 and first • FIT scheme closed to all new entrants prices rise implemented 1 April 2019 from 31 March 2019 • Continues for existing customers for up • Good Energy directly support to 20 years
Slide 20: Tomorrow - Strategic direction
2019 and beyond Tomorrow - Strategic direction Energy as Making clean energy the a service natural choice • Shift from the old model of generation • Just be Good - switching to clean power • Energy services, enabled by technology another choice to be Good • Vertically integrated business model – • 8
Slide 21: The vision - new product development and partnerships
2019 and beyond The vision - new product development and partnerships New Product Development Zap-Map • SMART technology is the enabler of the • Strategic investment in EV data platform future – full rollout in 2019 • The ’go-to’ app for the UK’s EV drivers • Eden Project – battery storage trial • E
Slide 22: Our focus for 2019
2019 and beyond Our focus for 2019 Good Energy ©2018 – Private & confidential 22 20 March 2019
Slide 23: Summary and outlook
2019 and beyond Summary and outlook Continued SMART meter Delivery of Good financial rollout in 2019 to performance investment in energy as a enable future and strong cash digital and data service for technology generation solutions solutions customers Good growth driven by business volumes, continu