Genesis Energy Limited · NZX:GNE
Genesis Energy — Investor Day (2025)
56 slides from Genesis Energy's investor day presentation, 2025
Slide 1: Tokaanu Power Station
Tokaanu Power Station
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Genesis Energy Forward-looking statements in this presentation are not Genesis Energy is subject to disclosure obligations under the Limited (“Genesis Energy”) for information purposes only. guarantees or predictions of future performance, are based
Slide 3: Master of Ceremonies
Master of Ceremonies Matt Osborne Chief Corporate Affairs Officer Tekapo A
Slide 4: Agenda
Agenda DAY 1 DAY 2 Start Mins Agenda Presenter Start Mins Agenda 11:00 15 Registration From 06:15 Check-in & PPE Gear Collection (Library) 11:15 5 Opening Karakia 07:15 15 Board Buses (Lower Hilton carpark) 11:20 10 Welcome Matthew Osborne 07:30 60 Buses Depart – Taupō 11:30 15 Introduction from the
Slide 5: Introduction
Introduction Barbara Chapman Chair of the Board Poutu Intake
Slide 6: Today’s presenters
Today’s presenters 1. Introduction 4. Accelerated Transition – Barbara Chapman Portfolio and trading Chair of the Board Stephen England-Hall Chief Revenue Officer 2. Getting Future Fit 5. Capital Management Ed Hyde Julie Amey Chief Transformation & Chief Financial Officer Technology Officer Master o
Slide 7: Gen35 Investor value proposition
Gen35 Investor value proposition Genesis 2.0: Energy that never stops! We’re delivering margin quality, cost discipline and strong capital management across an integrated portfolio with a large customer book, growing renewables, market leading flexibility Empowering the Margin quality customer led t
Slide 8: Our Gen35 strategy
Our Gen35 strategy Global energy transition: more electrons, more energy storage and data driven systems COUNTRY COUNTRY NET ZERO 2050 SECTOR SECTOR 60% 60% ELECTRIFICATION 95% 95% RENEWABLES 100% 100% RELIABILITY ELECTRIFICATION RENEWABLES RELIABILITY CUSTOMER RENEWABLES FLEXIBILITY COMPANY COMPANY
Slide 9: Government energy package response
Government energy package response Genesis is well-positioned to respond to the Government Energy Package through its strategic investments in Huntly’s capacity and a potential gas storage opportunity Dispatchable firming capacity Fuel security Firming products Renewables Genesis’ thermal assets a
Slide 10: Getting Future Fit
HORIZON 1 Getting Future Fit Ed Hyde Chief Transformation & Technology Officer Lauriston Solar Farm
Slide 11: We’re continuing to deliver against our Gen35 strategy
Horizon 1 We’re continuing to deliver against our Gen35 strategy What we said Horizon 1 Horizon 2 Horizon 3 ‘Getting Future Fit’ ‘Accelerated Transition’ ‘The Future State’ FY24 FY35 Focused on sweeping our Focused on electrifying New Zealand Moving past the transition own front yard at a group one
Slide 12: Key messages
Key messages CUSTOMER RENEWABLES FLEXIBILITY 1 Horizon 1 achieved – future fit for growth through to 2035 with solid foundations 2 Demonstrated resilience against external market and supply chain challenges beyond our control 3 Technology transformations are well underway, driving the next phase of
Slide 13: Horizon 1 - foundations established for growth
Horizon 1 Horizon 1 - foundations established for growth From strength to momentum Customer Renewables Flexibility Retail business simplified and reset Robust pipeline established Monetisation underway; flexibility enhanced ~200 FTE reduction Lauriston Solar Farm COD and Edgecumbe 2-year and 1
Slide 14: Portfolio set up to withstand challenging market conditions
Horizon 1 Portfolio set up to withstand challenging market conditions Huntly’s existing fuel flexibility ensures earnings resiliency amidst volatile market conditions Challenging market conditions… National hydro inflow – monthly variation from average Market gas production forecasts (PJ p.a.) Kupe
Slide 15: Transformation to a focused, simplified business is well underway
Horizon 1 Transformation to a focused, simplified business is well underway New capabilities accessed to deliver on long-term goals Budget on track with H1 priorities Progress re-phased spending $145m major digital projects opex ($m)(2) • Digitise core services to drive efficiency 3 core data plat
Slide 16: Major technology projects being delivered
Horizon 1 Major technology projects being delivered Technology transformations will step up digital capability Gross margin Recurring annual Commercial uplift(1) cost benefits(2) Improvements(2) • Simplifies and modernises core retail • Modernises finance through a cloud-based • Optimises portfolio
Slide 17: An efficient, future fit and forward-looking business
Horizon 1 An efficient, future fit and forward-looking business We are growth ready… New Simple and renewables Resilient and efficient and forward-looking foundations flexibility strategy Simple and efficient New renewables Resilient and forward- foundations and flexiblity looking strategy • Strong
Slide 18: Accelerated transition: Renewables and flexibility
HORIZON 2 Accelerated transition Renewables and flexibility Tracey Hickman Chief Operating Officer Lauriston Solar Farm
Slide 19: Key messages
Key messages RENEWABLES FLEXIBILITY 1 Established development capability, exemplified by progress on pipeline delivery 2 Monetising flexibility and driving value through proactive investments in our generation portfolio 3 Enhancing resilience today whilst strategically positioning to unlock value in
Slide 20: Delivering
Horizon 2 Delivering RENEWABLES Strong internal development capability built by attracting leading local and international talent Well-resourced development team with proven capabilities… …and a dedicated fuels strategy and O&M team Development Team Fuels Team O&M Team Collective Oil & gas Total FTE
Slide 21: Demonstrable delivery
Horizon 2 Demonstrable delivery RENEWABLES Delivering significant progress on development pipeline Genesis development pipeline progress since Nov-2023 (MW)(1) Time from project announcement to FID (Months) 1,600 40 +295MW +1,000MW +400MW 1,400 35 Targeted acquisition 1,200 strategy drives 3x 30 fas
Slide 22: Delivery track record
Horizon 2 – Renewables Delivery track record RENEWABLES FLEXIBILITY Track record across project identification, acquisition, development and construction Project identification and acquisition Project delivery 1 Edgecumbe Solar Farm 2 Rangiriri Solar Farm 3 Huntly BESS Stage 1(2) 4 Huntly BESS Stage
Slide 23: Driving optionality into wind development strategy
Horizon 2 – Renewables Driving optionality into wind development strategy RENEWABLES FLEXIBILITY Genesis’ wind pipeline provides optionality into Horizon 3 Wind pipeline – broad range of options Castle Hill wind farm Project Capacity Development status Discretionary growth opportunities: ~500 MW • C
Slide 24: Delivering an agile and flexible development strategy
Horizon 2 – Renewables Delivering an agile and flexible development strategy RENEWABLES FLEXIBILITY Agile development pipeline that is continually evaluated against Genesis’ capital allocation framework Genesis’ development pipeline Project Capacity / Duration Status Capex Operational 63 MW $104m La
Slide 25: Driving renewables value unlock
Horizon 2 – Renewables Driving renewables value unlock RENEWABLES FLEXIBILITY Strategic solar and wind investments replace baseload generation from hydro and thermal assets, enhancing asset flexibility Genesis assets’ price participation (%) Impact of renewables on Genesis’ portfolio Generation volu
Slide 26: Unlocking growing value pools through Huntly
Horizon 2 – FlexGen Unlocking growing value pools through Huntly FLEXIBILITY We are making tangible progress against Horizon 2 targets to maximise value from flexible generation across all horizons Market value of flexibility reward pool ($m p.a.) Huntly portfolio energy & capacity coverage 1,200 Ho
Slide 27: Monetising flexibility for the next decade
Horizon 2 – FlexGen Monetising flexibility for the next decade FLEXIBILITY Significant progress in monetising Huntly’s capacity and ensuring Rankine units availability to 2035 Monetisation of Rankine units Back-up for long HFOs, Genesis’ portfolio(2) Genesis’ Internal HFO Allocated to Huntly Firming
Slide 28: Gas flexibility is key to managing challenges and opportunities
Horizon 2 – FlexGen Gas flexibility is key to managing challenges and opportunities FLEXIBILITY Huntly’s flexible electricity generation and flexible gas supply are essential elements in a secure energy transition for New Zealand Huntly’s value capture opportunities across various gas market scenari
Slide 29: Established capability, flexibility and continued proactivity
Horizon 2 Established capability, flexibility and continued proactivity We are accelerating… Proven Portfolio Proactive development value and investment capability flexibility strategy – Proven development Growing portfolio value Proactive investment capability and flexibility strategy • Local and g
Slide 30: Accelerated transition: Portfolio and trading
HORIZON 2 Accelerated transition Portfolio and trading Stephen England-Hall Chief Revenue Officer Moawhango Dam
Slide 31: Electricity is a growth market
Horizon 2 Electricity is a growth market CUSTOMER Underlying organic growth and increasing electrification in mass market and transport sectors drive Genesis’ view of demand New Zealand forecast electricity TAM(1) (TWh) CAGR 50 Transport +18.9% 43 Genesis Transport 40 opportunity Transport Industria
Slide 32: Key messages
Key messages CUSTOMER 1 Driving operational cashflow uplift through value over volume 2 Integrating customer, portfolio and trading teams under one cost centre to optimise GGM(1) 3 Positioned for transition – Resilient, flexible and profitable One commercial group - different roles, one objective -
Slide 33: Already delivering, with more to come
Horizon 2 Already delivering, with more to come RENEWABLES Commercial leadership team delivered Horizon 1, now executing Horizon 2 Reset & Genesis simplified Retail unified brand New trading & analytics tools Integrated portfolio Local and global New trading & best practice capacity products People,
Slide 34: Driving OCF uplift through value over volume focus
Horizon 2 Driving OCF(1) uplift through value over volume focus CUSTOMER Driving demand growth: Electrifying New Zealand, one customer at a time 1 2 Delivering value through Lifetime customer value every channel OCF(1) uplift 4 3 GGM uplift through Continuous productivity leveraging portfolio uplift
Slide 35: From strong retail foundations to an integrated value engine
Horizon 2 From strong retail foundations to an integrated value engine CUSTOMER We’ve connected Trading, Portfolio and Customer to unlock end-to-end value and lift our group margin position Trading Portfolio Customer Sharper insight, stronger returns Finding the highest margin Turning scale into cha
Slide 36: Quality growth through channel optimisation
Horizon 2 Quality growth through channel optimisation CUSTOMER Rebalancing sales to high-margin channels and monetising flexibility to lift portfolio value Contracted (Sell) Revenue(1) ($m) Monetising Flex +$515 Unlocking value through higher- margin channels 420 • $515 m uplift FY23–25 driven by ch
Slide 37: Future fit foundations delivering strong netback growth
Horizon 2 Future fit foundations delivering strong netback growth CUSTOMER Re-engineered retail platform unlocking quality growth in netback Horizon 1: Future Fit Horizon 2: Channel & portfolio monetisation Reset cost, structure and systems Optimising pricing, shape, and cost across one commercial p
Slide 38: Earnings maximisation through unlocking flexibility
Horizon 2 – Renewables Earnings maximisation through unlocking flexibility RENEWABLES FLEXIBILITY Strategic investments to replace baseload generation, enhancing asset flexibility to maximise earnings Genesis assets’ price participation (%) Impact of renewables on portfolio Generation Portfolio GWAP
Slide 39: Positioned for resilient, flexible and profitable growth
Horizon 2 Positioned for resilient, flexible and profitable growth We are ready to scale… Portfolio Trading Customer Balancing Spot, Derivatives, Supply & Homes, Businesses, Hedging Demand Commercial & Industrial Trading Portfolio Customer • Sharp insights and execution • Integrated value engine • L
Slide 40: Capital Management
Capital Management Resilience through an accelerated transition Julie Amey Chief Financial Officer Waipipi Wind Farm
Slide 41: Key messages
Key messages 1 Optimising margin quality and cost discipline through strategy, productivity and delivery 2 Ensuring strong capital management and quality investment decisions 3 Delivering EBITDAF growth and competitive shareholder returns Shareholder Balance EBITDAF returns sheet growth resilience G
Slide 42: Strong capital management
Capital Management Strong capital management An enduring framework, with capital allocation prioritisation specifically targeting Gen35 Horizon 2 objectives to enable an accelerated transition Operating cash flows Capital allocation Funding toolkit 1 4 Balance sheet Pipeline Margin management Partne
Slide 43: Operating cash flow generation
Operating Cash Flow Capital Allocation Funding Toolkit Capital Management Operating cash flow generation Gen35 Horizon 1 and 2 delivering sustainable uplifts that grow EBITDAF and Operating Cashflows Margin quality Cost discipline EBITDAF growth FY28 Group Gross Margin outlook (NZ$m) FY28 OPEX outlo
Slide 44: Capital allocation
Operating Cash Flow Capital Allocation Funding Toolkit Capital Management Capital allocation Gen35 Horizon 2 prioritisation ensures a strong foundation of resilience, reliability and returns 1 Balance sheet management 2 Sustaining business investment 3 Dividend settings Net debt, liquidity and lever
Slide 45: Capital allocation: sources & uses
Operating Cash Flow Capital Allocation Funding Toolkit Capital Management Capital allocation: sources & uses Operating cashflow outlook for Horizon 2 is supplemented by a credible funding toolkit and future cashflows to enable the acceleration of growth opportunities through the pipeline funnel Sour
Slide 46: Quality investment decisions
Operating Cash Flow Capital Allocation Funding Toolkit Capital Management Quality investment decisions Multiple considerations ensure risk-adjusted returns are maximised across the Genesis portfolio Our investment principles and metrics… …underpin quality, competitive investment decisions Edgecumbe
Slide 47: Capital management: financing the business
Operating Cash Flow Capital Management Funding Toolkit Capital Management Capital management: financing the business Credible funding options, enabling diversification and value realisation within key financial settings Partnerships and joint ventures Contractual offtake Partnering structures with p
Slide 48: Capital management delivering growth, resilience and returns
Capital Management Capital management delivering growth, resilience and returns Accelerating towards our future state EBITDAF Shareholder Balance sheet growth returns resilience EBITDAF growth Shareholder returns Balance sheet resilience • Value over volume focus • Growing cash generation enabled •
Slide 49: The Future State
HORIZON 3 The Future State Malcolm Johns Chief Executive Tekapo B, in a full Lake Pukaki
Slide 50: Our Gen35 strategy
Our Gen35 strategy Global energy transition: more electrons, more energy storage and data driven systems COUNTRY COUNTRY NET ZERO 2050 SECTOR SECTOR 60% 60% ELECTRIFICATION 95% 95% RENEWABLES 100% 100% RELIABILITY ELECTRIFICATION RENEWABLES RELIABILITY CUSTOMER RENEWABLES FLEXIBILITY COMPANY COMPANY
Slide 51: New Zealand electricity market growth to 2035
Horizon 3 – Future State New Zealand electricity market growth to 2035 New Zealand’s electricity market demand is expected to grow at a CAGR between ~1% to 4%, predominantly driven by electrification of C&I processes and transport Market forecast range of annual electricity demand (TWh) 60 Genesis e
Slide 52: Genesis portfolio growth and evolution
Horizon 3 – Future State Genesis portfolio growth and evolution Driving renewable growth to retain market share through solar, wind and partnerships to achieve a matched generation and long capacity portfolio Forecast portfolio growth and generation composition(1) (TWh) 12 Rankines reach practical e
Slide 53: Significant opportunity in market value of flexibility
Horizon 3 – Future State Significant opportunity in market value of flexibility Significant value capture opportunity for Genesis: ~8x growth in volatility value pools by 2035 Market value of flexibility reward pool ($m p.a.) Illustrative valuation of firming Horizon 2: Accelerated Transition Horizo
Slide 54: Gen35 Competitive Advantage
Horizon 3 – Future State Gen35 Competitive Advantage Resilient Demand + Growing Renewables + Firming Across Every Time Scale = Reliable and Growing Earnings A credible pipeline of A firming A large new long customer book renewable portfolio generation 01 02 03 • 500,00 customers across • 2.5 GW of n
Slide 55: Gen35 investor value proposition
Gen35 investor value proposition Genesis 2.0 Energy that never stops! We’re delivering margin quality, cost discipline and strong capital management across an integrated portfolio with a large customer book, growing renewables, market leading flexibility Empowering the Margin quality customer led tr
Slide 56: Thank you for joining us!
Thank you for joining us! Tokaanu Power Station