Genesis Energy Limited · NZX:GNE
Genesis Energy — Shareholder Meeting (October 2016)
58 slides from Genesis Energy's shareholder meeting presentation, Oct 19, 2016
Slide 1: Market Release: Annual Shareholder Meeting 2016
For personal use only MARKET RELEASE Date: 19 OCTOBER 2016 Genesis Energy Limited (GNE) –Annual Shareholder Meeting 2016 Genesis Energy’s Annual Shareholder Meeting will be held today, at Eden Park, P5 - Reimers Avenue, Mt Eden, Auckland, on Wednesday 19 October 2016, at 10.00am. Please see the atta
Slide 2: Dame Jenny Shipley, Chairman
Genesis Energy ASM 19 October 2016 |1 Dame Jenny Shipley, Chairman Slide 3: Dame Jenny Shipley – Chairman (portrait) For personal use only Kia ora koutou katao. Good morning ladies and gentlemen. My name is Jenny Shipley and I have the privilege of chairing your company, Genesis Energy. On behalf of
Slide 3: Chairman's address: new Chief Executive
Genesis Energy ASM 19 October 2016 |2 This is our second shareholders’ meeting in Auckland. The Genesis Energy Board and the Genesis Energy team are delighted to be able to talk directly with such a large number of our Auckland-based shareholders and share with you our confidence in this Company. Fo
Slide 4: Your Board introductions
Genesis Energy ASM 19 October 2016 |3 Genesis Energy Directors in the 2016 Annual Report and on our website I would like to briefly introduce them to you. [Camera on Graeme Milne] Graeme Milne was appointed as director of the Board in May For personal use only 2009. Graeme is a professional director
Slide 5: Board introductions continued
Genesis Energy ASM 19 October 2016 |4 the Board of Genesis Energy in May 2007. . Joanna’s current directorships include the Trade Me Group, Kiwi Property Group and Partners Life. Joanna is also Chairman of the International Financial Reporting Standards (IFRS) Advisory Council. [Camera on Doug McKay
Slide 6: Chairman and board changes
Genesis Energy ASM 19 October 2016 |5 [Camera on Dame Jenny] Finally I was appointed to the Genesis Energy Board as Chairman in November 2009. In recent years I have chaired or served as a Director on a number of companies and organisations here in NZ and off shore. I am Chair of the China For perso
Slide 7: Directors' fees and meeting agenda
Genesis Energy ASM 19 October 2016 |6 As you will have noted in the resolutions, we will also be seeking your support for an increase in the pool for Directors’ fees. As outlined at our Annual Shareholder Meeting in 2015, we will address this issue on a regular basis. It has been two and a half year
Slide 8: Company performance overview
Genesis Energy ASM 19 October 2016 |7 Ladies and Gentlemen, it is now my pleasure to present you with an overview of the Company’s performance. I note that you will have received the Annual Report and Financial Statements for the year ended 30 June 2016 either by post or electronically, depending on
Slide 9: The energy market is rapidly evolving
Genesis Energy ASM 19 October 2016 |8 number of parties for up to four years to the end of 2022. This is a good outcome for all involved. Slide 8: The energy market is rapidly evolving For personal use only That leads on to Genesis Energy’s changing role in the wider market, and how our current mark
Slide 10: Three-pronged strategy and regulation
Genesis Energy ASM 19 October 2016 |9 To achieve this we have adopted a three pronged strategy of Optimise, Innovate and Invest which Marc will expand on. With such significant change in the energy sector we believe it is clearly time to review the regulations and policies governing the For personal
Slide 11: Commitment to change
Genesis Energy ASM 19 October 2016 | 10 demand for more choice, simpler services and smarter technologies that support their lifestyle and expectation to be allowed to flourish. Genesis Energy intends to be taking a leading position in this For personal use only debate in the coming years during thi
Slide 12: Questions and answers
Genesis Energy ASM 19 October 2016 | 11 Dame Jenny to return to her seat. Marc approaches the lectern for his presentation. For personal use only Marc’s PRESENTATION Following Marc’s presentation, Dame Jenny returns to the lectern for the formal part of the meeting. [Back to DAME JENNY] Thank you Ma
Slide 13: Question handling guidance
Genesis Energy ASM 19 October 2016 | 12 1. POINT TO PERSON 2. DIRECT MICROPHONE 3. LISTEN TO QUESTION AND ANSWER OR 4. REFER TO Marc or Chris AS REQUIRED For personal use only 5. IF questions are too technical or specific customer type questions– Refer the shareholder to a specialist to talk about t
Slide 14: Ordinary Business and Resolutions
Genesis Energy ASM 19 October 2016 | 13 Slide 21: Ordinary Business and Resolutions For personal use only We now move on to the formal business of the day and the procedure for this part of the meeting. All items of business are ordinary resolutions and are required to be passed by a simple majority
Slide 15: Voting procedure
Genesis Energy ASM 19 October 2016 | 14 I will invite you to vote after each of the resolutions has been introduced to the meeting. When you cast your vote, please tick one box, either For, Against or Abstain, alongside each Resolution on the Proxy Voting Form. For personal use only If you hold a pr
Slide 16: Resolution: Election of Maury Leyland
Genesis Energy ASM 19 October 2016 | 15 Slide 22: Resolution 1 – Election of Maury Leyland For personal use only Resolution 1 proposes: That Maury Leyland who was appointed as a Director of the Company by the Board on 1 August 2016, retires and is eligible for election, be elected as a Director of G
Slide 17: Resolution One proxy results
Genesis Energy ASM 19 October 2016 | 16 Thank you Maury. Is there any discussion on this resolution? Dame Jenny or Maury as appropriate to respond to any For personal use only comment or questions There appears to be no [further] discussion. Slide 23 – Resolution One with proxies The Proxy results f
Slide 18: Resolution: Election of Paul Zealand
Genesis Energy ASM 19 October 2016 | 17 Slide 24: Resolution 2 – Election of Paul Zealand Resolution 2 proposes: That Paul Zealand, who is eligible for election, be elected as a Director of the Company. For personal use only Paul has been nominated in accordance with the NZX Listing Rules and the Co
Slide 19: Resolution Two proxy results
Genesis Energy ASM 19 October 2016 | 18 Dame Jenny or Paul as appropriate to respond to any comment or questions There appears to be no further discussion. For personal use only The Proxy results for this Resolution are on the screen behind me now. Slide 25 – Resolution Two with proxies Proxy Discre
Slide 20: Resolution 3: Election of Timothy Miles
Genesis Energy ASM 19 October 2016 | 19 The Board believes the Company will benefit from Tim’s extensive experience in information and communication technology industries, obtained through senior roles both in New Zealand and internationally. It is noted that from early 2013 Tim has been CEO of Spar
Slide 21: Resolution Three and Resolution Four
Genesis Energy ASM 19 October 2016 | 20 Slide 27 – Resolution Three with proxies Proxy Discretion votes totalling 1,032,451 assigned to the Chairman of the Meeting and Directors, will be voted in favour of the Resolution. For personal use only I now put to the vote the ordinary resolution: That Timo
Slide 22: Directors' fees benchmarking
Genesis Energy ASM 19 October 2016 | 21 attract and retain the right directorial skills and experience to govern our business and that Directors of the Company are being fairly remunerated for the work they undertake. The benchmarking showed that although the fees were increased by the Crown at the
Slide 23: Resolution 4: Directors' fee pool increase
Genesis Energy ASM 19 October 2016 | 22 year to carry out reviews of Directors’ remuneration on a two yearly cycle. Accordingly Resolution 4 proposes: That the total annual remuneration pool to pay Genesis Energy Directors be increased by $135,000, from $805,000 to $940,000 phased in over two For pe
Slide 24: Voting
Genesis Energy ASM 19 October 2016 | 23 second part of the increase taking effect from 1 November 2017. Please take a moment to mark your Proxy Voting Form in relation to Resolution 4. For personal use only PAUSE to allow people to mark their form. Slide 29 – Voting If you haven’t already done so, p
Slide 25: Voting close and general business
Genesis Energy ASM 19 October 2016 | 24 If anyone is unsure about these instructions please approach one of the people from Computershare. They will be happy to help you. CHECK the people passing boxes around the room have For personal use only finished the process. All Proxy Voting Forms should now
Slide 26: Morning tea and end of meeting
Genesis Energy ASM 19 October 2016 | 25 During morning tea please don’t hesitate to approach us and raise matters of interest or concern which may not have been covered in the presentations or the Q and A. We would welcome your feedback on today’s meeting and on our communications in general. If you
Slide 27: Marc England, Chief Executive
Genesis Energy AGM 19 October 2016 |1 Marc England, Chief Executive Slide 10: Chief Executive – Marc England (portrait) For personal use only Thank you Dame Jenny and good morning everyone. Once again, a warm welcome to you all at my first Annual Shareholders’ Meeting and welcome also to those watch
Slide 28: Executive team introductions
Genesis Energy AGM 19 October 2016 |2 trading operations to her portfolio and is now building an integrated generation and trading team, which ensures we all have electricity to power our lives. James Magill also started with us on Monday as Executive General Manager Product Marketing. James will pr
Slide 29: Customer focus and strategy
Genesis Energy AGM 19 October 2016 |3 Whatever we do, we cannot sit on our hands and think that business as usual will carry us through. My commitment to you our shareholders is Genesis Energy will evolve as the market evolves and ensure we create sustainable growth and shareholder value. Since my a
Slide 30: Huntly Rankine Units extension
Genesis Energy AGM 19 October 2016 |4 In August 2015, Genesis Energy announced that unless market circumstances changed significantly a retirement plan for the two coal Rankine Units at Huntly would eventuate. Those significant changes For personal use only did occur as other generators closed plant
Slide 31: Results summary
Genesis Energy AGM 19 October 2016 |5 The Company’s vision and strategy require the whole of the Executive Team to be focused on customers and the drive to deliver a greater number of energy products and services to build a deeper relationship with customers. For personal use only Slide 17: Results
Slide 32: FY17 Outlook
Genesis Energy AGM 19 October 2016 |6 Slide 19: FY17 Outlook Guidance for the financial year ahead is provided subject to any material events, significant one off expenses or other unforeseeable circumstances. For personal use only Earnings guidance for FY2017 is that Genesis Energy will deliver EBI
Slide 33: 2016 Annual Shareholder Meeting
For personal use only Annual Shareholder Meeting 2016
Slide 34: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Genesis Energy Limited (‘Genesis Energy’) for information purposes only. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information required for an inv
Slide 35: Introduction
For personal use only # Introduction ____ Dame Jenny Shipley Chairman
Slide 36: Your Board of Directors
Your Board of For personal use only Directors DAME JENNY GRAEME MILNE MARK CROSS MAURY LEYLAND JOANNA PERRY DOUG MCKAY JOHN LEUCHARS RUKUMOANA SHIPLEY SCHAAFHAUSEN
Slide 37: Agenda
Agenda For personal use only 1 Your Company __ 2 Business Review __ Dame Jenny Shipley Marc England Chairman Chief Executive 3 Shareholder Questions __ 4 Resolutions and Voting __ 2016 Annual Shareholder Meeting 5
Slide 38: Your Company
Your Company For personal use only Strong cash flows are delivering industry- leading yields 2016 Annual Shareholder Meeting 6
Slide 39: Huntly Power Station: future assured
Huntly Power Station: future assured For personal use only Life extension through commercial arrangements is a good outcome for all 2016 Annual Shareholder Meeting 7
Slide 40: Energy market is rapidly evolving
Energy market is rapidly evolving For personal use only Technology is revolutionising the energy sector to give consumers more control 2016 Annual Shareholder Meeting 8
Slide 41: Commitment to change
Commitment to change For personal use only • Positioning Genesis Energy for a successful future as an enabler of energy management services • Customer data and insights • Substantial customer base provides quality data • Insights-driven product development • Well-managed assets • Diverse generation
Slide 42: Business Review
For personal use only # Business Review ____ Marc England Chief Executive
Slide 43: Refreshed Executive Team
Refreshed For personal use only Executive Team DEAN SCHMIDT JENNIFER JAMES MAGILL TRACEY HICKMAN NIGEL CLARK NICOLA RICHARDSON CHRIS JEWELL CHERRINGTON-MOWAT Executive General Executive General Executive General Executive General Executive General Executive General Chief Financial Officer Manager Co
Slide 44: Strategic direction
Strategic direction For personal use only Reimagining Energy video 2016 Annual Shareholder Meeting 12
Slide 45: Customer focus
Customer focus For personal use only Innovating to create new products and digital services for our customers 2016 Annual Shareholder Meeting 13
Slide 46: Generation performance
Generation performance For personal use only • Optimising our working capital by reducing fuel inventories Coal stockpile 1800 1600 1400 1200 1000 800 600 400 200 0 2011 2012 2013 2014 2015 2016 Coal stockpile 2016 Annual Shareholder Meeting 14
Slide 47: Kupe Oil and Gas Field
Kupe Oil and Gas Field For personal use only • Provides a competitive advantage and integrated revenue streams 2016 Annual Shareholder Meeting 15
Slide 48: Reshaping the Company
Reshaping the Company For personal use only • Re-organising to be customer and data insights driven 2016 Annual Shareholder Meeting 16
Slide 49: Results summary
Results summary For personal use only • Earnings stable and net profit after tax increased due to revaluations 450 400 350 300 250 200 150 100 50 0 2012 2013 2014 2015 2016 EBITDAF Net Profit 2016 Annual Shareholder Meeting 17
Slide 50: Strategies that drive long term growth
Strategies that drive long term growth For personal use only • A reorientation toward customers and a focus on value with three themes. Optimise Innovate Invest The current business To build enduring In new capabilities customer and growth relationship 2016 Annual Shareholder Meeting 18
Slide 51: Outlook
Outlook For personal use only • Q1 FY17 will be focused on embedding new strategy and team 2016 Annual Shareholder Meeting FY17 guidance is provided subject to any material events, significant one off expenses or 19 other unforeseeable circumstances
Slide 52: Questions
For personal use only # Questions ____ Dame Jenny Shipley Chairman
Slide 53: Ordinary business and resolutions
For personal use only # Ordinary business and resolutions ____ Dame Jenny Shipley Chairman
Slide 54: Resolution One: Election of Maury Leyland
Resolution One For personal use only Election of Maury Leyland 2016 Annual Shareholder Meeting 22
Slide 55: Resolution Two: Election of Paul Zealand
Resolution Two For personal use only Election of Paul Zealand 2016 Annual Shareholder Meeting 23
Slide 56: Resolution Three: Election of Timothy Miles
Resolution Three For personal use only • Election of Timothy Miles Tim Miles video 2016 Annual Shareholder Meeting 24
Slide 57: Resolution Four: Directors' Fees
Resolution Four For personal use only • Directors’ Fees 2016 Annual Shareholder Meeting 25
Slide 58: Please join us for Morning Tea
For personal use only Please join us for Morning Tea