Genie Energy Ltd. · NYSE:GNE
Genie Energy — NobleCon January 2019
20 slides from Genie Energy's conference presentation, Jan 28, 2019
Slide 1: Investor Presentation NobleCon – January 2019
Investor Presentation NobleCon – January 2019 Genie Energy Ltd (NYSE: GNE)
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains forward - looking statements. Statements that are not historical facts are forward - looking statements and such forward - looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
Slide 3: Genie Energy at a glance
Genie Energy | at a glance 3 Genie Retail Energy Services Genie Energy Ltd.* (NYSE: GNE) (NYSE: GNEPRA) Genie Retail Energy Genie Retail Energy International * Genie Oil and Gas (GOGAS) and Afek not included. The company has reduced its oil and gas exploration operations accounted for in these busin
Slide 4: Investment Thesis
Investment Thesis Successfully restructured operations to focus on growth within Retail Energy and Energy Services businesses Strategic Transition • Legacy oil and gas exploration operations have been substantially reduced Genie Energy is expanding domestic and international operations Strong G rowt
Slide 5: Retail Energy Overview
Genie Retail Energy Overview Genie Retail Energy operates a leading portfolio of domestic retail energy providers (REP s ) • Launched in 2004. • Now among the largest independent residential REPs • Domestic operations in 14 states and D.C. • History of strong financial performance 5
Slide 6: Retail Energy Overview: Value proposition
Genie Retail Energy Overview Value proposition ● Customers: Power of choice, value added services and potential savings ● Utilities: Removes load - based risk while generating fees from services 6 Managed - risk model ● Many utilities offer purchase of receivables programs – reducing credit risk ● A
Slide 7: Commentary: Meters and RCEs (Domestic)
7 Commentary ● 2014 : First half Polar Vortex increases churn. Second half stabilization ● 2015 - 2016 : Strong sequential electric meter, RCE growth and new territories ● 2016 : Acquired Town Square Energy in fourth quarter ● 2017 : Organic RCE growth ● 2018: Declines through first three quarters r
Slide 8: Retail Value Chain
Retail Value Chain Customer Acquisition Model Value Creation Long - term, Valuable Customers ● Multiple sales channels across multiple regions ● Diverse product offerings ● Deep data analysis to identify market opportunities and optimize product offerings ● Hedging strategies reduce commodity volati
Slide 9: Retail Energy Markets
Genie Retail Energy Markets 9
Slide 10: Texas Market Launch
Texas Market Launch License Granted in 4Q18, market launch 1HQ19 Large, diverse addressable market: • 6.2 million residential customers • 1.1 million commercial • 4.3 thousand industrial Robust innovative marketplace: • ERCOT handles 90% of state's electric load • Mandatory switch - 92% of customers
Slide 11: Customer Portfolio
Customer Portfolio* 11 * Residential Customer Equivalents (RCEs) at September 30, 2018
Slide 12: Powerful Brands
| Powerful Brands SOUTHERN ! FEDERAL s A Texas Power Supply Co. Repent MA MIRABITO | natural gas — - | Z TownsQquore’ @ energy S
Slide 13: Retail International
Genie Retail International ● Acquired Lumo Energia , in January 2019 ● 32,000 electric meters ● TAM: 3.4 million meters in Finland ● Platform to address Scandinavian markets ● Date entered: December 2017 ● Electricity and natural gas ● TAM: 50 million meters 13 Finland Great Britain Japan ● 1H 2019
Slide 14: Retail Energy Services
Genie Retail Energy Services 14 ● Diversegy – Energy brokerage, efficiency consulting and LED installation ● Genie Solar Energy - End to end solar solutions from initial project design though installation ● Prism Solar Technologies – US design er and manufacture r of solar systems featuring innovati
Slide 15: Energy P&L By Line of Business
Genie Energy P&L By Line of Business 15 *TTM – Trailing twelve months ended September 30, 2018 Afek and Genie Oil & Gas(USD in millions) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2017 TTM* Revenue - - - - - - $0.2 $0.0 $0.2 Gross Profit - - - - - - 0.2 0.0 0.2 SG&A 0.5 0.5 0.4 0.5 1.1 1.1 0.7 1.9 2.9 Explo
Slide 16: Why Own Genie Energy?
Why Own Genie Energy? 16 Special Situation Investors ● Successful transition to ward a pure - play retail energy provider model while curtailing oil and gas (O&G) exploration program ● Reduced O&G exploration expense will positively impact Adjusted EBITDA* and cash flows in 2018 - 2019 ● Public comp
Slide 17: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 17 In addition to including financial results that are determined in accordance with generally accepted accounting principles in th e United States of America (GAAP), Genie Energy’s investor presentation included Adjusted EBITDA, which is a non - GAAP financia
Slide 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 18 *TTM – Trailing twelve months ended September 30, 2018
Slide 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 19 *TTM – Trailing twelve months ended September 30, 2018
Slide 20: Michael Stein, CEO; Avi Goldin, CFO
Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer