Good Energy — H1 2023 Earnings Presentation
25 slides from Good Energy's earnings presentation, Sep 19, 2023
Slide 1: Good Energy Group plc Interim results
Good Energy Group plc Interim results 6 months to 30 June 2023 19 September 2023
Slide 2: Agenda
Agenda Agenda Overview Nigel Pocklington, CEO 3 Financial performance Rupert Sanderson, CFO 5 Strategic update Nigel Pocklington, CEO 12 Q&A Nigel Pocklington, CEO Rupert Sanderson, CFO 2 Interim Results | © 2023 Good Enaergy. Private & Confidential
Slide 3: Overview
Overview Nigel Pocklington CEO 3 Interim Results | © 2023 Good Enaergy. Private & Confidential
Slide 4: H1 snapshot
Delivering on strategy Launched new services H1 snapshot Scaling up our energy To help scale our energy services portfolio services offering Continued expansion of our energy services portfolio. Growing our installation Powering a cleaner, footprint Full year guidance greener future. We make it simp
Slide 5: Financial performance
Financial performance Rupert Sanderson CFO 5 Interim Results | © 2023 Good Energy. Private & Confidential
Slide 6: 2023 profitability significantly weighted to H1 due to power/gas purchasing approach
Financial Performance 2023 profitability significantly weighted to H1 due to effect of power/gas purchasing approach § Tariffs fall quickly § Tariffs peak § Wholesale costs fall marginally § Wholesale costs benefit due to long term hedging from long term hedging § Weak margin performance § Strong ma
Slide 7: Delivering stability in a volatile market
Financial Performance Delivering stability in a volatile market HY 22 Revenue growth sharply weighted to H1 £m HY 23 Reported % change Revenue £156.1 £107.6 45% Revenue growth of £49m, up 45% versus H1 2022 Cost of Sales -£123.5 -£95.4 29% Reflects the steep wholesale cost increases in 2022 Gros
Slide 8: PBT development – H1 2023
Financial Performance PBT development – H1 2023 Margin upside seen in H2 2022 peaks in H1 2023. Supply earnings peak in H1 23 before falling to normalised position longer term. Expansion into Energy Services brings forecast additional costs in 2023 £m Movement 8 Interim Results | © 2023 Good Energy.
Slide 9: Cashflow statement
Financial Performance Cashflow statement Strong operational performance in a difficult market Year End £(000)s H1 2023 FY 2022 £13m of cash generated from operations reflecting strong Operational cashflows before working capital £13,273 £2,799 profitability in H1 2023 Working Capital movement -£24
Slide 10: Active planning for changes in commodity market conditions
Financial Performance Active planning for changes in commodity market conditions Actively executed winter 22 and summer 23 trading and risk mitigation as planned, supporting strong H1 financial performance Wholesale costs are more stable, but still subject to market shocks Well hedged for wint
Slide 11: Capital allocation
Financial performance Capital allocation Substantially debt free with strong available cash balance of £29.4m* Further M&A in energy services to expand regional footprint Invest in services and transport product development Interim dividend of 1.00p proposed (2022 Interim 0.75p) 11 Interim R
Slide 12: Strategic update
Strategic update Nigel Pocklington CEO 12 Interim Results | © 2023 Good Energy. Private & Confidential
Slide 13: Energy services: a multi-product strategy
Strategic update Energy services: a multi-product strategy 2023 Growth ü Rolling out of solar services and tariffs ü New time of use tariffs ü Growing solar, storage and heat pump installations ü M&A to accelerate services strategy faster ü Zapmap delivering pathway of EV drivers 13 Interim Results
Slide 14: The future of energy and why this makes us a better business
Strategic update The future of energy and why this makes us a better business ü Building incremental revenue streams ü Diversifying across the Market EBITDA Working energy supply and growth margin capital intensity services market Energy services 10 – 20% 10 – 15% Low ü Lower working capital intensi
Slide 15: Building a targeted energy supply offering
Strategic update Building a targeted energy supply offering Today 2023 and beyond Changing customer mix Energy supply is one strand of our energy services offer Domestic and small-scale commercial customers Reduction in higher volume business supply Clear customer segments for supply and services –
Slide 16: Delivering a market leading EV position in Zapmap
Strategic update Delivering a market leading EV position in Zapmap 12 months Zapmap: registered users v battery EV parc to June 2023 Total downloads: 1.25m / +41% Registered users: 683k / +52% Monthly active app users: 285k / +16% 16 Interim Results | © 2023 Good Energy. Private & Confidential
Slide 17: Zapmap: Building scale and recurring revenue
Strategic update Zapmap: Building scale and recurring revenue Today 2024 and beyond ü Refreshed brand and Consumer app website Build on leading capabilities for the mass market to ü Approaching £2m Q4 run- offer the simplest way to find and pay for affordable, rate ARR available and reliable chargin
Slide 18: Becoming the go to company for solar power services
Strategic update Becoming the go to company for solar power services Today 2023 and Customers earn more on smart export Launched smart export for beyond Actual export averages +20% more than deemed 50% Feed-in Tariff customers Targeting 75,000 customers Earn even more with the best flat rate export
Slide 19: Impressive solar market growth continues whilst heat market is slower
Strategic update Impressive solar market growth continues whilst heat market is slower 2023 Growth ü Solar installations continue to grow : +18%. ü Target CAGR: 9.9% to 2030 ü Heat growth is slower. +7% ü Greater installs in the South of England 19 Interim Results | © 2023 Good Energy. Private & Con
Slide 20: Scaling installation services
Strategic update Scaling installation services Today 2023 and Scaling through acquisitions beyond Expand through regional footprints Triple install capacity by 2025 ü Wessex Eco doubling capacity by end of 2024 Solar leads the way ü Heat pump installs set to Targeting 200 solar installs in 2023 and
Slide 21: Progress on our transition to an energy services company in 2023
Strategic update Progress on our Rolling out of solar services and transition to an tariffs to 75k existing customers energy services Ramping up solar and heat installs through owned brands company in 2023 Further M&A to accelerate installation capability • • Investment in Zapmap New EV tariff • Wes
Slide 22: Q&A
Q&A 22 Interim Results | © 2023 Good Energy. Private & Confidential
Slide 23: Appendices
Appendices 23 Interim Results | © 2023 Good Energy. Private & Confidential
Slide 24: Good Energy customer numbers evolution
Strategic update Good Energy customer numbers evolution Thousands 900.0 800.0 Our goal 700.0 600.0 500.0 is to support one million homes 400.0 300.0 200.0 100.0 and businesses - 2019 2020 2021 2022 H1 2023 cut carbon from their energy and transport Supply - domestic Supply - business Feed in tariff
Slide 25: 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