Good Energy — FY2023 Earnings Presentation
27 slides from Good Energy's earnings presentation, March 2024
Slide 1: Good Energy Group plc Preliminary financial results for 2023
Good Energy Group plc Preliminary financial results for 2023
Slide 2: Agenda
Preliminary financial results 2023 Agenda Overview Nigel Pocklington, CEO 2 Financial performance Rupert Sanderson, CFO 3-7 Strategic update Nigel Pocklington, CEO 8-19 Q&A Nigel Pocklington, CEO 20 Rupert Sanderson, CFO 1 Interim Results | © 2023 Good Enaergy. Private & Confidential
Slide 3: Overview: Strong financial performance
Preliminary financial results 2023 Overview Strong financial performance Solid financial results for 2023 and a strong balance sheet to invest in the future of the business The business has undergone a Roll out of new tariffs and services significant transformation in the last 12 months, from renewa
Slide 4: Financial performance
Financial performance Rupert Sanderson, CFO 3 © 2021 Good Energy. Private & Confidential
Slide 5: Strong growth in operating profits
Financial Performance Strong growth in operating profits Revenue growth Revenue growth of £6.0m, up 2.4% versus 2022. £m FY23 FY22 Delta Pricing reflects high commodity cost environment when entering 2023. Revenue 254.7 248.7 6.0 2024 will show falling revenues reflecting lower commodity costs
Slide 6: PBT development
Financial Performance PBT development Margin upside peaked in H1 2023. H2 performance was marginally ahead of expectations. Expansion into energy services brings forecast additional costs in 2023 and sets the business up for future years. 5 © 2021 Good Energy. Private & Confidential
Slide 7: Cashflow statement
Financial Performance Cashflow statement Strong operational performance Year End £(000)s FY 2023 FY 2022 Operational cashflows before working capital 11,330 2,130 Strongly cash generative in 2024 but: Working Capital movement 9,301 3,050 Customer credit balances growth of £9m – reflective of Cash
Slide 8: Capital allocation
Financial Performance Capital allocation Substantially debt free with strong available cash balance of £21.2m* (2022 equivalent £14.6m). Further M&A in energy services to expand regional footprint - JPS Acquisition Feb 2024. £11m invested in solar and heat installation businesses. Updated segm
Slide 9: Strategic update
Strategic update Nigel Pocklington, CEO 8 © 2021 Good Energy. Private & Confidential
Slide 10: The UK energy supply market will be transformed over the next 10 years
Strategic update The UK energy supply market will be transformed over the next 10 years Mass transition towards small-scale, low carbon UK Domestic Installations 3.0 Actual and forecast to 2030 200 Solar and storage 180 UK Solar market worth £1.9bn*, installations +38% in 2.5 160 Cumulative instal
Slide 11: Everything you need for a greener home or business
Everything you need for a greener home or business • Renewable supply • Solar and storage • Heat pumps • Electric vehicles Flexibility, import and export tariffs enabling the technology to deliver carbon and cost savings for the customer. 10 © 2024 Good Energy. Private & Confidential
Slide 12: The greener home and business value chain
Strategic update The greener home and business value chain • Green • Smart • Energy bill • Extended • Lower running • Lower import Customer electricity charging savings savings from costs off peak • Five-star • Lower running • Payments for solar • Comfortable • Higher export service costs export hea
Slide 13: Truly renewable supply
Strategic update Truly renewable supply Good Energy supply remains recognised as a greener product providing a solid foundation for our services. Greener product, competitive price, five-star customer service. First UK supplier to offer hourly matching to all business customers. 12 Interim Results |
Slide 14: A premium solar offering
Strategic update A premium solar offering Av. price High quality service focus Installation price c. 40% above national average Average domestic install size c. 24% larger Regional PV than national average Specialists 5* Trust a Trader reviews A differentiated combined position JPS National
Slide 15: Bespoke heat pump systems
Strategic update Bespoke heat pump systems Green heating made simple • Bespoke design and end to end installations for more complex properties. • 10 year warranty and performance monitoring with proven +340% efficiency. • 7.5% larger than average system size compared to top 200 UK installers at 28%
Slide 16: Product pipeline
Strategic update Product pipeline 2023 Plan to deliver in 2024 Solar savings and smart export Operational efficiency • 60k customers on smart export and new • Automating and digitising services. Solar Savings leading export rate open to • Apple and Google play in app. non-FiT generator customers. In
Slide 17: Aligning the Good Energy brand
Strategic update Aligning the Good Energy brand Supply and export - national EV charging, solar and storage EV charging and heat EV charging, solar, storage and heat 16 © 2021 Good Energy. Private & Confidential
Slide 18: An overview of Zapmap
Strategic update An overview of Zapmap By 2040 Globally 700m 75% 335m EVs on road Of new vehicles Public charge are EVs point connectors 17 © 2021 Good Energy. Private & Confidential
Slide 19: Market leading app
Strategic update Market leading app 18 © 2021 Good Energy. Private & Confidential MAU = Monthly Active Users | Data January 2024
Slide 20: Good Energy now helps over one million customers cut carbon
Strategic update Good Energy now helps over one million customers cut carbon Set a goal of helping one million homes and businesses to cut carbon by 2025. 1,200,000 We have hit the goal one year early through – 1,000,000 • Explosive growth in Zapmap register users 800,000 • New services 600,000 • St
Slide 21: Q&A
Q&A 20 © 2021 Good Energy. Private & Confidential
Slide 22: Appendix
Appendix 21 © 2021 Good Energy. Private & Confidential
Slide 23: Simplifying flexibility
Simplifying flexibility Our goal is to make access to smart, flexible energy systems accessible and straightforward following the principles of universal design, tailored products, educational and enhanced support services. • Leading rates on export • Genuine renewable Customer • Export at peak time
Slide 24: Our accreditations
Our accreditations Solar and heat Green supply Customer service pump installations Health and safety annual audit: Employer JPS Accident rates - Good Energy Heat: 0.17 per person Wessex : 0.26 per person 23 © 2021 Good Energy. Private & Confidential
Slide 25: Growing our services business
The opportunity – JPS Renewables overview Growing our services business Cross-selling Introduce wider Good Energy product suite, including export tariffs, further installations and flexibility services. 14% of Good Energy new Heat Pump installations take supply 20% of new solar installations t
Slide 26: Balance Sheet
Financial Performance PROVISIONAL Balance Sheet Year End £m FY 20233 FY 2022 Strong operational performance Total Non-Current Assets £17.8 £16.7 Increase in cash and cash equivalents includes £9m Inventories & Receivables £46.9 £66.6 growth in customer credit balances, and release of £2.5m Restric
Slide 27: Disclaimer
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 t