Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2023)
27 slides from Genie Energy's investor presentation, Mar 23, 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023 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
3 Genie Energy At A Glance *as of 12/31/22 ** from continuing operations ***see recons in appendix $316M 2022 Revenue 49.1% 2022 GM $83M 2022 Adj. EBITDA*** ~2.8% Dividend Yield (3/17/23) $15.7M 2022 Stock Repurchased Genie Energy Ltd. Genie Retail Energy (GRE) Genie Renewables (GREW) Genie is a lea
Slide 4: Track Record of Driving Shareholder Returns
4 Track Record of Driving Shareholder Returns Company Market Value @9/14/09 Most Recent Market Value * Genie Energy (NYSE: GNE) 10/28/11 (Spin - off) $285M IDT Corp (NYSE: IDT) $53M $860M IDW Media (NYSE American: IDW) 9/14/09 (Spin - off) $10M Straight Path Communications (NYSE: STRP) 7/31/13 (Spin
Slide 5: Investment Highlights
Investment Highlights 5 Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility
Slide 6: Large Market Opportunity
LARGE MARKET OPPORTUNITY
Slide 7: Our Opportunity: Selling Electricity & Natural Gas in De-Regulated U.S. Markets
Our Opportunity: Selling Electricity & Natural Gas in De - Regulated U.S. Markets… • GRE has a presence in 18/28 states + Washington D.C. • Additional states considering de - regulation in various forms 7
Slide 8: And in Developing, Owning & Operating Solar Farms
8 …And in Developing, Owning & Operating Solar Farms *Solar Energy Industry Association Community Commercial Utility >600K Commercial Facilities 1% Penetration Components Shortages due to global supply chain issues 8X DOE Est. Growth thru 2025 Favorable Regulatory Environment “ In the next half deca
Slide 9: Attractive Growth Profile
ATTRACTIVE GROWTH PROFILE
Slide 10: Our Organic Growth Strategy is…
Our Organic Growth Strategy is… 10 Retail • Take share in existing markets • Opportunistically expand retail book geographically • Introduce new products • Focus on customer retention to manage churn Solar • Develop, own & operate solar farms • Differentiate solar through vertical integration
Slide 11: …Complemented by Inorganic Growth
…Complemented by Inorganic Growth Retail Acquisitions – customer books or companies 01 Direct purchase & development of solar farms by GREW 02 General Partner for Sunlight Energy Investments - owned solar farms 03 Acquire new renewable technologies 04 11
Slide 12: Attractive Financial Returns
Attractive Financial Returns Targeted payback period tailored to product & customer type How We Grow in Retail Multiple sales channels Diverse portfolio of products Deep data analysis to identify market opportunities & optimize offerings Targeted M&A Hedging strategies reduce commodity volatility ri
Slide 13: How We Grow in Solar: Vertical Integration
How We Grow in Solar: Vertical Integration 13 GREW Genie Solar Originate, design, C&I Designs/manufactures solar panels w/non - China operations (no supply chain issues) Customer acquisition, billing & management services Diversegy - complementary sales channels Sunlight Energy Investments (SEI) Inv
Slide 14: Portfolio and Risk Management
PORTFOLIO AND RISK MANAGEMENT
Slide 15: Hedging Program Provides Portfolio Optionality
» Hedged customer book heading into colder months » Long Energy in U.S. and Europe 2H21 » UK energy market disintegrates » Exited UK - still returned cash to U.S. Global Events: Energy Crisis in Europe » Long Energy » Portfolio management of low margin customers in U.S. drives strong margins GRE » L
Slide 16: Financial Summary
FINANCIAL SUMMARY
Slide 17: GNE: Significant Margin Expansion and Adj. EBITDA Growth
17 GNE: Significant Margin Expansion and Adj. EBITDA Growth * 25% 30% 35% 40% 45% 50% 55% $0 $50 $100 $150 $200 $250 $300 $350 $400 2019 2020 2021 2022 Revenue Operating Income Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri, GREI a/o 12/31/22. Please see reconc
Slide 18: Driven by GRE Strength
Driven by GRE Strength* 18 25% 30% 35% 40% 45% 50% $0 $50 $100 $150 $200 $250 $300 $350 2019 2020 2021 2022 Revenue Op. Inc. Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri operations a/o 12/31/22. Please see reconciliations in Appendix BS0
Slide 19: GREW Positioning for Future Growth
GREW Positioning for Future Growth * 19 0% 5% 10% 15% 20% 25% 30% 35% 40% -$5 $5 $15 $25 $35 2019 2020 2021 2022 Revenue Op. Inc. Adj. EBITDA Gross Margin $m * Please see reconciliations in Appendix ** pending permitting ***actively under evaluation or bid 2022+ » Formed Sunlight Energy Investments
Slide 20: Strong Balance Sheet Provides Optionality
Strong Balance Sheet Provides Optionality * 20 * As of 12/31/22 $0.0 $105.1 $138.1 $277.6 Debt Cash Working Capital Total Assets
Slide 21: Capital Allocation Strategy Drives Shareholder Returns
Capital Allocation Strategy Drives Shareholder Returns 21 Common stock dividend (currently $0.075/quarter) Common Stock Preferred Stock Opportunities for outsized growth potential (e.g. Solar) Select M&A Retail Customer acquisition New retail markets New retail products Internal Reinvestment Corpora
Slide 22: Summary
Summary 22 Large market opportunity Attractive Growth Profile Portfolio & Risk Management Are Differentiators Strong Balance Sheet/Cash Flow Provide Strategic Flexibility
Slide 23: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Senior Managing Director Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
Slide 24: Appendix: Pro-forma Financials
24 APPENDIX: *Pro - forma Financials * Pro - forma excluding the impact of Texas Winter Storm Uri a/o 12/31/21 $ (000's) 2019 2020 2021 2022 Revenue Electricity $246,690 $270,890 $273,020 $241,830 Gas $39,930 $33,560 $38,810 $62,140 Total Revenue $286,610 $304,450 $311,830 $303,970 COGS Electricity
Slide 25: Reconciliation Tables – Genie Energy Financials - Consolidated
25 Reconciliation Tables Slides 17,24 – Genie Energy Financials - Consolidated 2019 2020 2021 2022 Consolidated revenue (as reported) $300,100 $338,430 $323,270 $315,540 Less: Revenue of Genie Japan $1,400 $8,770 $3,930 --- Pro forma consolidated revenue $298,700 $329,660 $319,340 $315,540 Consolida
Slide 26: Reconciliation Tables – GRE Financial Highlights
26 Reconciliation Tables Slides 18 – GRE Financial Highlights 2019 2020 2021 2022 GRE revenue (as reported) $286,610 $304,450 $311,830 $303,970 GRE gross profit (as reported) $80,620 $88,310 $90,880 $152,980 Less Gross profit (loss) from Winter Storm Uri --- --- ($10,000) --- Pro-forma GRE gross pro
Slide 27: Reconciliation Tables – GREW Financial Highlights
27 Reconciliation Tables Slides 19 – GREW Financial Highlights 2019 2020 2021 2022 Income (Loss) from Operations ($2,890) ($2,570) $250 ($3,130) Add Back: Non-Cash Compensation --- --- --- --- Depreciation & Amortization $1,010 $330 $50 $50 Impairment $400 $1,400 --- --- GREW Adjusted EBITDA (as rep