Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (September 2021)
31 slides from Genie Energy's investor presentation, Sep 23, 2021
Slide 1: Investor Presentation September 2021
Investor Presentation September 2021 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: Today
3 Genie Energy at a Glance: Today Genie is a leading retail energy provider (REP) to select deregulated markets within the US & Europe & provides solar solutions in the US Genie Renewables Genie Energy Ltd. NYSE: GNE, GNEPRA Genie Retail Energy (GRE) Genie Retail Energy International (GREI)
Slide 4: IDT Corporation – The Foundation
4 IDT Corporation – The Foundation IDT /Jonas Family have a consistent track record of building businesses & creating significant value for shareholders via tax - free spin - offs Company Market Value @9/14/09 Most Recent Market Value * IDT Corp (NYSE: IDT) $53M $1,081M IDW Media (NYSE American: IDW
Slide 5: Genie Energy Shareholder Value Creation Plan: Step 1
5 Genie Energy Shareholder Value Creation Plan: Step 1 Genie Energy plans to spin - off its European operation into a separate publicly traded company named Oriel Energy in 4Q21 Genie Retail Energy (GRE) Genie Renewables Genie Energy Ltd. (REMAINCO) NYSE: GNE, GNEPRA Oriel Energy (SPINCO) NYSE Ameri
Slide 6: Spin-off Details
Spin - off Details 1. Howard Jonas has committed to participate in equity raise 2. Oriel will consist of Orbit Energy (UK), Lumo Energia Oyj (Finland), & Lumo Energi AB (Sweden) 6 1:1 Tax - free spin - off to existing GNE Shareholders $3M Expected GNE cash contribution to Oriel $10M * Simultaneous e
Slide 7: Spin-off Rationale
Spin - off Rationale 1. Each company will benefit from an undiluted focus on its own specific strategic priorities & customer/market requirements 2. Each company will have gre ater flexibility to tie decision - making, capital allocation & capital structure to its business 3. Each company will have
Slide 8: Genie Energy Value Creation Plan - Step 1
Genie Energy Value Creation Plan - Step 2 8 Genie benefits as a standalone : Frees management to focus more on domestic growth strategy & operations Frees capital to expand current operations to spur organic growth Frees capital for new growth opportunities Allows for evaluation of more opportunitie
Slide 9: Oriel Energy (SpinCo)
OrBiT ENERGY 2 UMGeNERel ORIEL ENERGY (SPINCO) LUMOENERGIA
Slide 10: Oriel Energy at a Glance
10 Oriel Energy at a Glance* Operating Offices Newark NJ; Finland; UK Key Management: CEO Otto Savasti CFO Justin Price Chairman Michael Stein Vice Chairman Howard Jonas Reserved Ticker - NYSE American ORIE ~193k Meters (6/30/21) ~50 Employees $92M Rev. (2020) 100% Rev. Gr. (2020) +31% Meter Gr. (6/
Slide 11: Oriel Energy's Businesses
Oriel Energy (UK) Oriel Energy’s Businesses 11
Slide 12: Investment Thesis
Investment Thesis 12 Uniquely positioned investment opportunity in growth - oriented European utility business Asset - light model & scalable platform focused on deregulated markets Significant growth opportunities Current geographies via existing sales channels & accretive, strategic M&A New produc
Slide 13: Oriel's Market Opportunity
Oriel’s Market Opportunity 13 0.5M 2.5M 7.0M 2.7M 4.7M 28M 2.5M 1.5M
Slide 14: Oriel's Growth Strategy
Oriel’s Growth Strategy 14 Invest for profitable meter growth in existing markets Streamlined operating cost structure Consolidate enterprise functions between UK & Scandinavia Improve profitability by market as businesses mature Reduce churn - customer service investment in technology/human capital
Slide 15: Orbit Energy – UK Market Dynamics
Orbit Energy – UK Market Dynamics * 15 *Source : ONS, OFGEM State of the Market Report, 2019 0% 20% 40% 60% 80% 100% 2Q05 2Q06 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q18 2Q19 2Q20 Big 6 Small and Medium Suppliers Market Share £30B TAM UK domestic energy market ~45 Active Suppliers 8
Slide 16: Orbit Energy Strategy
Moderate, sustainable growth model focused on increasing gross margin/lowering CAC Target underserved consumers & those at price cap & deliver savings w/out sacrificing gross margin Use field & telesales partners to reach unengaged consumers Introduce new electric & adjacent products 16 Orbit Energy
Slide 17: Lumo Scandinavia
Lumo Scandinavia 17 ~70 Active Suppliers >50% * Est. share of Top 3 100% Monthly Payment Plans Low barriers to entry Light to Medium Market Regulation Consolidation under way *Internal Estimate Market Dynamics Finland: Variable, Fixed, Bundle, & Premium Electricity Sweden: Variable, Fixed Electricit
Slide 18: Lumo Scandinavia Strategy
Lumo Scandanavia Strategy 18 73K Meters (2020) High growth model focused on accretive customer acquisition Differentiate through simplicity & digital Simple relative product portfolio w/easy to understand contracts Efficient customer acquisition/service through digital channels Superb customer suppo
Slide 19: Summary
Summary 19 Uniquely positioned investment opportunity in asset - light, emerging growth REP Large, dynamic current TAM with significant adjacent opportunities ~200k installed base provides platform for cross - selling Anticipate strong improvement in profitability for 2022 $13M+ capital injection vi
Slide 20: Genie Energy (RemainCo)
GENIE ENERGY ( REMAINCO )
Slide 21: Genie Energy at a Glance
21 Genie Energy at a Glance* HQ Newark, NJ Key Management: CEO Michael Stein CFO Avi Goldin President/COO GRE Alan Schwab Chairman Howard Jonas Lead Independent Dir. W. Wesley Perry Tickers (NYSE) GNE, GNEPRA ~150 Employees $324M Rev. TTM * Pro - forma for US operations only as of 6/30/21 361K Meter
Slide 22: Genie's Businesses
Genie Energy Genie’s Businesses 22
Slide 23: Investment Thesis
Investment Thesis 23 Proven cash generation through diverse commodity & economic market environments Core market growth + emerging growth optionality Post spin - off, enhanced FCF for growth investment & shareholder value creation strategies
Slide 24: Genie's Growth Strategy
Genie’s Growth Strategy 24 Expand current operations to spur organic growth Identify new markets for expansion I ntroduce new products into existing, successful marketing channels Develop vertically integrated commercial solar solutions business & expand sales teams BS3
Slide 25: GRE: US Market Opportunity & Dynamics
GRE: US Market Opportunity & Dynamics 25 Competition Incumbent utility & other REPs 28 Deregulated markets State by state regulatory structure Role of Utilities Distribution & Billing (most markets)
Slide 26: GRE Value Creation
GRE Value Creation Multiple sales channels to residential & small commercial Diverse portfolio of products highlighted by green energy (carbon offsets), variable & fixed rate plans Deep data analysis to identify market opportunities & optimize offerings Hedging strategies reduce commodity volatility
Slide 27: Genie Renewables at a Glance
Genie Renewables at a Glance 27 Target Market: 100 kW – 3 mW commercial solar space C ompetition: 2 - 4 strong regional market players + some mom & pop shops More competition in community solar space Customers make decisions based on relationships & price Best in class companies fund their own proje
Slide 28: Genie Renewables – US Market Dynamics
Genie Renewables – US Market Dynamics 28 Commercial customers increasingly financing conversion costs Chinese supply constraints present opportunities Market constraints in areas with limited & confusing net metering laws >43% Solar as a % of new grid capacity (2020) >600K TAM for Solar on commercia
Slide 29: Genie Renewables – Growth Strategy
Genie Renewables – Growth Strategy 29 Expansion to adjacent markets Hiring additional sales & growing distribution relationships Own & operate community solar projects Leverage vertical integration to develop community solar projects Expand solar development project close rate Provide financing opti
Slide 30: Summary
Summary 30 Proven cash generation through diverse commodity & economic market environments Core market growth + emerging growth optionality Expand current operations to spur organic growth Identify new markets for expansion I ntroduce new products into existing, successful marketing channels Develop
Slide 31: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Managing Director, Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
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