Genesis Energy Limited · NZX:GNE
Genesis Energy — ASX CEO Connect March 2018
17 slides from Genesis Energy's conference presentation, March 2018
Slide 1: ASX CEO Connect
ASX CEO Connect March 2018 Chris Jewell – CHIEF FINANCIAL OFFICER GENESIS ENERGY LIMITED
Slide 2: About New Zealand
About New Zealand — good growth in a stable regulatory environment Source: Economy Rankings 2017 (The World Bank), The Heritage Foundation 2017, Forbes Lists 2016, Legatum Prosperity Index 2016, Energy Architecture Performance Index 2017 (World Economic Forum) MAR18 ASX CEO CONNECT 2
Slide 3: About Genesis Energy
About Genesis Energy — only integrated energy management company in New Zealand KEY INFORMATION Revenue: NZ$2.0 billion EBITDAF Guidance (FY18): NZ$350-360 million , Dividend Yield: 6.7% Share Price: NZ$2.40 Market Capitalisation: NZ$2.4 billion Average Daily Turnover: 750,000 shares Credit Rating:
Slide 4: Market fundamentals outlook
Market fundamentals outlook — continue to be supportive • Electricity demand growth of 1% in 2017 with EV penetration accelerating Customer • Total NZ gas demand down due to industrial however retail growth continues with connections up over 15,500 in past five years • LPG demand growth remains stro
Slide 5: Strategy
Strategy Company Financial Investor
Slide 6: Company strategy
Company strategy — five key strategic initiatives underpin our transformation REIMAGINING ENERGY to put control in our customers’ hands Optimise Innovate Invest To improve short term return For medium term growth For long-term value creation Core Strategic Deliver operational Increase value share Ta
Slide 7: Company strategy: Recent strategy highlights
Company strategy: Recent strategy highlights — transformation journey underway Launched NZ’s first real world research and Reset development energy Strategy and vision community Acquired additional 15% of Kupe for $168 million Acquired retail LPG distribution business of Nova Energy for Delivered $2
Slide 8: Company strategy: Innovating to lead
Company strategy: Innovating to lead — working with customers collaboratively to build our energy management capabilities Energy Innovation Management R&D Local Energy Energy Project Management New My Technologies Account Technology “Making Energy management real for our “Partnering with customers t
Slide 9: Financial strategy: FY21 target
Financial strategy: FY21 target — target to deliver $400 - $430 million by FY21 $15m -$20m $12m -$17m $13m -$17m $6m -$10m $2m -$3m $5m -$8m $400m - $9m -$14m $5m -$8m $430m $385m - $410m $333m FY17 EBITDAF Operational Residential Business Grow LPG Energy Kupe Core growth 4 Original Nova Energy Revi
Slide 10: Investor Strategy
Investor Strategy — continued growth in dividends with a 8.6% gross yield1 and outperformance of TSR relative to peers • FY17 16.6c of dividends declared up 1.2% representing a cash yield of 6.7%. Dividend policy to grow in real terms over time with 3.8% growth delivered in past three years against
Slide 11: Financial Performance
Financial Performance
Slide 12: Financial overview
Financial overview — a diverse portfolio delivering consistent earnings over time • HY18 EBITDAF $200 million, up 28%, FY18 guidance of $350 - $360 million • NPAT down 24% to $28 million, due to fair value movements, underlying earnings up 14% to $43 million • Operating cash flow up 57% to $199 mill
Slide 13: Capital structure overview
Capital structure overview — long tenure debt in place at lower cost, with BBB+ rating from S&P, DRP in place • Average cost of debt 5.8%, down 20 basis points Key Debt Metrics 31 Dec • Average tenure 11 years, up 3.1 years 2017 • S&P reaffirmed BBB+ rating post acquisitions in January 2018 with Net
Slide 14: Summary
Summary
Slide 15: Why Genesis?
@ Why Genesis? 4. Agile culture embracing . Delivering a cohesive 2. Ensuring security of 3. Creating value customer experience supply in a volatile through an integrated and leading change with 3 products on one renewable market fuel position technology platform
Slide 16: Genesis Energy
Genesis Energy — our mission is to reimagine energy, to put control in our customers’ hands • Company strategy • Deliver operational excellence and value optimization • Increase value share of residential category • Grow business 2 business & LPG categories • Build energy services • Financial strate
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