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Genesis delivers strong result while investing for growth

Half Year Results27 February 2022GNEUtilities

GENESIS ENERGY LIMITED
Interim Report 2021

GENESIS ENERGY LIMITED

Interim Report 2022

2
GENESIS INTERIM REPORT 2022

Barbara Chapman CNZM

CHAIR

Marc England

CHIEF EXECUTIVE

Tēnā koutou,

Genesis continued to move at pace in

the first half of the 2021-22 financial

year with ongoing investment in the

transformation of the business and

new renewable generation, while

at the same time delivering another

solid financial performance.

The flexibility of our generation

assets, the Waipipi wind farm being

fully operational and growth in retail

netbacks were among important

contributors to the result. EBITDAF

was $210.3m, NPAT was up 63%

to $84.7m and gross margin was up

1% to $354.6m. The board approved

an interim dividend of 8.7 cents per

share and the reintroduction of the

Dividend Reinvestment Plan at 2.5%

discount.

Investing for the future

Our digital transformation continues

and will create consistent and

distinctive end-to-end customer

experiences, allow us to scale new

products and services at a greater

pace, integrate with partners more

efficiently, and reduce cost and risk

through automated processes.

We also continue to invest in our

assets to maximise their efficiency

and output.

During the half, along with our Kupe

joint venture partners Beach Energy

and NZ Oil and Gas, a $72m project

at the gas production station near

New Plymouth was completed.

It restored the plant's potential

capacity of 77TJs per day, equivalent

to approximately 15% of New

Zealand’s daily natural gas demand.

The joint venture partners are now

investigating the potential for drilling

another development well to further

increase recovery from the field.

Kupe remains a high-quality gas asset

and will continue to play a key role in

New Zealand’s transition to a lower

carbon future.

After five years of planning, design

and manufacture, work started on

stage two of a challenging upgrade

of our Tekapo B power station that

will future-proof it for decades. The

$15m+ project will see the station

deliver its 800 GWh of annual

generation by using up to 12,000

less litres of water per second.

The project will deliver operational

flexibility along with reduced

running limitations and annual

maintenance costs. The work follows

the completion of a two-year $26.5m

project to install a new intake gate at

Tekapo A in FY21.

Chairman and Chief Executive’s

joint letter

FROM THE CHAIRMAN AND CEO

Pukapuka Mai I te Heamana me te Manahautū

EBITDAF¹

m

HY21 $216.0m

$

NPAT

2

m

HY21 $52.0m

$

1. EBITDAF: Earnings before net finance expense, income

tax, depreciation, depletion, amortisation, impairment,

fair value changes, and other gains and losses. Refer

to the consolidated comprehensive income statement

on page 6 for reconciliation from EBITDAF to net profit

after tax.

2. Net Profit After Tax.

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GENESIS INTERIM REPORT 2022

sources of energy. Locations for the

solar developments will be mainly

in the North Island with a focus on

existing transmission connection

points.

Helping customers reduce their

emissions

Empowering New Zealand’s

sustainable future includes providing

tools and insights to help customers

understand and take action on their

own carbon footprint. Reducing

transport emissions is a focus for the

country, and we’ve developed some

unique offerings for electric vehicle

owners. More than 1,000 customers

have taken up our EV Plan over recent

months, and we’ve developed a portal

on our Energy IQ platform where

they can access data on their usage

and find the most cost-effective and

emissions-friendly times to charge.

Among those on the plan so far, we’ve

seen 7% moving their household

usage from day to night.

FROM THE CHAIRMAN AND CEO

EV Sync can

automate the

best times for

charging

added benefit that the power used

can be measured separately from the

rest of the house and sent directly

to the company for reporting and

reimbursement.

We have also seen strong growth

among commercial and industrial

customers wanting to understand their

energy use as the first step toward

decarbonising their business. Now,

more than 25% of these customers

– with 5% growth in the half - are

purchasing decarbonisation services

from us. A key driver in the uptake

of these differentiating products has

come from restructuring the supply

of our Energy Insights monitoring

product. We moved from a third-party

leasing arrangement to developing

our own sensors at the start of this

financial year, and now operate more

than 1,000 at clients’ premises.

Launching Frank*Energy

We also rebranded Energy Online

to Frank*Energy to reflect a new

direction, offering and attitude that it

will bring to the market. Challenger

retail brands have grown 40% over

the last four years and Frank*Energy

offers a simplified customer

proposition and business model to

keep prices low with digital sign up,

service and automation to drive lower

cost to acquire and serve. There are

no contracts, no preferential deals

with the same plans available for new

and existing customers. Frank*Energy

starts with a base of 90,000

customers and offers electricity, gas

and LPG. Customers can sign up,

manage their usage, pay bills and

place orders for LPG through the

Frank app and online. While owned by

Genesis, Frank*Energy, will operate

autonomously.

On the North Island’s East Coast, a

$7.7m project is underway to overhaul

two turbines at the Piripaua power

station. It's expected to improve

efficiency by 3.3%. Work on the

first generator started in November

and will run through till March. The

second unit will be upgraded in FY23.

Empowering New Zealand’s

sustainable future

Playing our role in the country’s

transition to a low carbon future

remains top of mind across the

organisation. This includes building

a sustainability framework to help us

deliver our targets.

In November we launched a

comprehensive Sustainable Finance

Programme, recognising the

company’s commitment, leadership

and investment in mitigating climate

change and sustainability more

broadly. The programme includes a

new Sustainable Finance Framework,

designating an existing NZX listed

bond (GNE030) as a Green Bond

and a $100m loan linked to achieving

our sustainability targets. The

targets acknowledge the broad

reach of sustainability, and include

reductions across all scopes of

emissions, ramp up renewable energy

generation goals, and a future of

work programme. As per the terms of

sustainable linked loans, Genesis will

pay a lower interest rate on the loan

for achieving its goals but will have to

pay higher interest if it falls short of

its commitments. During December

2021, Genesis converted a further

$150m of its funding facilities to a

sustainability linked loan structure.

Continuing to execute our Future-gen

strategy at pace, we also confirmed

FRV Australia as our joint venture

partner for the development of

grid-scale solar. FRV Australia is a

leading developer of utility-scale solar

farms and will bring its expertise in

developing these around the world

to work with Genesis in delivering

up to 500MW of solar capacity over

the next five years. This will generate

about 750GWh pa – enough to power

100,000 households or 185,000 EVs

per year. Genesis will hold a 60%

stake in the joint venture, which will

add to our generation portfolio of

hydro, wind, geothermal and thermal

We also partnered with Christchurch

based company Evnex to develop

and trial new EV smart charging

technology. Evnex has been at the

forefront of developing chargers since

2014 and now has a market-leading

smart charger that can safely reduce

overnight charging to a few hours.

The smart charger can also ‘talk’ to

electricity lines companies to balance

load and help smooth demand on

the grid. Genesis, through in-house

software development, has added

EV Sync, an intelligent feature that

connects the smart chargers to the

Energy IQ app so customers can

schedule and automate the best times

to charge.

Genesis is using the Evnex smart

chargers in a pilot with EV car sharing

company Zilch for one of their large

corporate clients. It includes the

installation of chargers in employee

homes as a cost-effective alternative

to workplace charging, with the

4
GENESIS INTERIM REPORT 2022

Officer in January while Rebecca

Larking and Pauline Martin will

transition to their respective new

roles, Chief Operations Officer and

Chief Trading Officer, by mid-April.

We’re also pleased to welcome James

Spence as Chief Financial Officer.

We should all be mindful of NIWA’s

warning about La Nina weather

patterns for the next few months,

but the sector is in better shape

heading toward autumn and winter

than a year ago. The lakes are fuller,

we have reliable supplies of gas, and

the Waipipi wind farm is now fully

operational. There is also sufficient

coal to back-up the system, if the

country needs it.

Above all, after more than 100 days

of lockdown, our thanks go to all

our people who adjusted superbly

to the challenges and continued to

deliver strongly for our customers

and shareholders, helping Genesis to

continue to empower New Zealand’s

sustainable future.

Ngā mihi,

Barbara Chapman

Chairman

Marc England

Chief Executive Officer

FROM THE CHAIRMAN AND CEO

The role of Huntly

Huntly’s role in supporting the

market through the dry year of 2021

underlined its strategic importance to

New Zealand. This was also borne out

in independent analysis of the market

that we commissioned looking at four

different market scenarios through to

2030. In all scenarios, New Zealand

is on track to achieve 96% - 98%

renewable electricity by 2030 with

some thermal generation expected

to be needed to maintain a reliable

electricity system when renewable

energy is low.

Emissions from Huntly will decrease

sharply throughout this decade. We

believe we have reached peak coal

use and are looking at alternative

fuel options for the Rankines, such

as biomass. Broadly speaking, there

are three aspects to the work –

sourcing the right type of biomass,

ensuring there is a reliable supply, and

understanding the changes that will

need to be made to the Rankine units.

There is a lot to learn in each of these

areas. We are hopeful a biomass trial

will be possible in the coming months,

and, if successful, we’ll assess the

fuel’s commercial viability.

We believe that Huntly is a viable

alternative to the Lake Onslow

pumped hydro project. It’s ideally

located for major electricity

generation, close to demand, with

high voltage connection, and has

access to a good local workforce.

Transitioning the Rankines to biomass

strengthens the case for Huntly to

continue as the country’s electricity

back-up.

Coping with Covid

Covid-19 has proven to be a marathon

rather than a sprint for the country.

We’re very proud of how our staff

have adapted to fluctuating alert

levels and varied restrictions to

continue supporting our customers

and keeping our sites operational.

At all times, our priority has been

the safety of our people and we have

proactively looked at trends and

developments around the world. In

August we introduced saliva testing at

Huntly to provide assurance our staff

and the plant could operate safely.

We also joined other businesses in

November calling on the Government

to allow us to import rapid antigen

tests as another layer of protection

for staff and help ensure workplace

continuity. The Government agreed

and we secured more than 50,000

tests that are being deployed across

our business. Each staff member has

been provided with rapid antigen

testing kits and training. To enter

any of our premises, staff need to

complete a negative test twice a

week and upload the result to an

internal app. The feedback from staff

was overwhelmingly positive and our

people have completed more than

15,500 rapid antigen tests to date.

Looking ahead

Dealing with Covid-19 remains a key

priority but will not slow the pace of

our transformation.

The sector is waiting for the

Government to deliver a national

energy strategy later this year that

we hope will provide a detailed

framework for how the country will

achieve a lower carbon future. We

would like to see a clearly defined

long-term national energy strategy

with a strong commitment to a

more renewable energy system

supported by clear policies developed

in collaboration with business. We

believe a focus on carbon intensive

areas such as process heat and

transport should be a priority,

recognising the opportunity for

electricity to support a lower carbon

Aotearoa.

We enter the next phase of our

growth with four new executives

and a gender balanced executive

team. Three of the appointments

are internal promotions highlighting

the strong professional development

programme within the business to

foster growth and succession. Peter

Kennedy was appointed Chief Digital

Saliva testing

at Huntly

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GENESIS INTERIM REPORT 2022

Condensed Consolidated

Interim Financial Statements

For the six months ended

31 December 2021

Condensed

consolidated interim

financial statements


Consolidated comprehensive

income statement

6

Consolidated statement of

changes in equity

7

Consolidated balance sheet8

Consolidated cash flow statement9

Notes to

the condensed consolidated

interim financial statements


General information and significant matters10

A. Financial performance

A1. Underlying EBITDAF and underlying earnings12

A2. Segment reporting12

A3. Depreciation, depletion and amortisation15

B. Operating assets

B1. Property, plant and equipment15

B2. Oil and gas assets16

C. Working Capital

C1. Receivables and prepayments17

C2. Inventories17

D. Funding

D1. Borrowings18

D2. Finance expense19

D3. Dividends19

E. Risk management

E1. Derivatives19

E2. Change in fair value of financial instruments20

E3. Fair value measurement20

F. Other

F1. Related party transactions21

F2. Commitments22

F3. Contingent assets and liabilities22

F4. Arbitration decision in respect of a carbon liability dispute22

F5. Subsequent events22

Ngā Tauākī Pūtea Tōpū Whakarāpopoto Weherua

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

6
GENESIS INTERIM REPORT 2022

Consolidated comprehensive income statement

For the six months ended 31 December 2021

Note

31 Dec 2021

unaudited

$ million


Restated*

31 Dec 2020

unaudited

$ million

RevenueA2 1,382.4 1,419.4

ExpensesA2(1 ,1 7 2 .1 )(1,203.4)

Earnings before net finance expense, income tax, depreciation, depletion,

amortisation, impairment, fair value changes and other gains and losses

(EBITDAF)

A2210.3 216.0

Depreciation, depletion and amortisationA3(106.0)(102.1)

Impairment of non-current assets(2.5) -

Revaluation of generation assetsB1 - 0.5

Change in fair value of financial instrumentsE2 3 7. 0 (1 0.1)

Share of associates and joint ventures(3.4)(0.4)

Other gains (losses) 13.3 (1.0)

Profit before net finance expense and income tax 148.7 102.9

Finance revenue 0.2 0.3

Finance expenseD2(30.6)(30.3)

Profit before income tax 118.3 72.9

Income tax expense(33.6)(20.9)

Net profit for the period 84.7 52.0

Other comprehensive income

Change in cash flow hedge reserve 59.1 22.4

Income tax expense relating to items above(16.5)(6.3)

Total items that may be reclassified to profit or loss 42.6 1 6.1

Change in asset revaluation reserveB1 - (257.6)

Income tax credit relating to items above - 72.1

Total items that will not be reclassified to profit or loss - (185.5)

Total other comprehensive income (expense) for the period 42.6 (169.4)

Total comprehensive income (expense) for the period 127.3(117.4)


Earnings per share (EPS) from operations attributable to shareholders Cents Cents

Basic and diluted EPS 8 .1 2 5.02

* The comparative information has been restated to reflect the revision of the accounting policy for Intangible assets. Refer to the

'General information and significant matters' section in the notes for a reconciliation to the previously reported information.

The above statement should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

7
GENESIS INTERIM REPORT 2022

Consolidated statement of changes in equity

For the six months ended 31 December 2021

Note

Share

capital

unaudited

$ million

Share-

based

payments

reserve

unaudited

$ million

Asset

revaluation

reserve

unaudited

$ million

Cash flow

hedge

reserve

unaudited

$ million

Retained

earnings

unaudited

$ million

Total

unaudited

$ million

Balance as at 1 July 2021 652.2 2.2 1,508.5 (50.3)(60.9) 2,051.7

Restatement for adoption of revised

accounting policy*

- - - - (5.2)(5.2)

Restated balance as at 1 July 2021 652.2 2.2 1,508.5 (50.3)(6 6 .1 ) 2,046.5

Net profit for the period - - - - 84.7 84.7

Other comprehensive income

Change in cash flow hedge reserve - - - 59.1 - 59.1

Income tax expense relating to other

comprehensive income

- - - (16.5) - (16.5)

Total comprehensive income for the period - - - 42.6 84.7 127.3

Changes associated with share-based

payments

(0.2)(0.6) - - 0.2 (0.6)

Net change in treasury shares 0.1 - - - - 0.1

DividendsD3 - - - - (91.8)(91.8)

Balance as at 31 December 2021 652.1 1.6 1,508.5 ( 7. 7 )(73.0)2,081.5

Note

Share

capital

unaudited

$ million

Share-

based

payments

reserve

unaudited

$ million

Asset

revaluation

reserve

unaudited

$ million

Cash flow

hedge

reserve

unaudited

$ million

Retained

earnings

unaudited

$ million

Total

unaudited

$ million

Balance as at 1 July 2020 635.0 1.8 1,398.0 (42.7) 7 7. 7 2,069.8

Restatement for adoption of revised

accounting policy*

- - - - (3.4)(3.4)

Restated balance as at 1 July 2020635.0 1.8 1,398.0 (42.7)74.3 2,066.4

Restated net profit for the period - - - - 52.0 52.0

Other comprehensive income

Change in cash flow hedge reserve - - - 22.4 - 22.4

Change in asset revaluation reserveB1 - - (257.6) - - (257.6)

Income tax (expense) credit relating to other

comprehensive income

- - 72.1 (6.3) - 65.8

Restated total comprehensive income

(expense) for the period

- - (185.5) 1 6.1 52.0 (117.4)

Revaluation reserve reclassified to retained

earnings on disposal of assets

- - (4.4) - 4.4 -

Hedging gains and losses transferred to the

cost of assets

- - - 0.2 - 0.2

Income tax on hedging gains and losses

transferred to the cost of assets

- - - (0.1) - (0.1)

Changes associated with share-based

payments

(0.2)(0.2) - - 0.2 (0.2)

Shares issued under dividend reinvestment planD3 17.3 - - - - 17.3

Net change in treasury shares 0.1 - - - - 0.1

DividendsD3 - - - - (89.9)(89.9)

Restated balance as at 31 December 2020 652.2 1.6 1,208.1 (26.5) 41.0 1,876.4

* The accounting policy for Intangible assets has been revised during the period. Refer to the 'General information and significant

matters' section in the notes for a reconciliation to the previously reported information.

The above statement should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

8
GENESIS INTERIM REPORT 2022

Consolidated balance sheet

As at 31 December 2021

Note

31 Dec 2021

unaudited

$ million

30 Jun 2021

restated*

$ million

Cash and cash equivalents71.6 104.3

Receivables and prepaymentsC1231.6 341.3

InventoriesC2184.0 93.2

Intangible assets82.1 55.4

Tax receivable - 15.1

DerivativesE17 7. 0 320.1

Total current assets646.3 929.4

Receivables and prepaymentsC13.4 4.1

Property, plant and equipmentB13,435.8 3,485.4

Oil and gas assetsB2280.9 293.9

Intangible assets335.2 340.4

Investments in associates and joint ventures27.4 21.0

DerivativesE168.9 160.5

Total non-current assets4,151.6 4,305.3

Total assets4,797.9 5,234.7

Payables and accruals290.9 390.5

Tax payable6.7 -

BorrowingsD13 6 7. 0 379.7

Provisions11.6 7.1

DerivativesE175.9 404.3

Total current liabilities752.1 1,181.6

Payables and accruals5.2 4.3

BorrowingsD11,078.9 1,048.1

Provisions156.2 159.1

Deferred tax643.2 619.5

DerivativesE180.8 175.6

Total non-current liabilities1,964.3 2,006.6

Total liabilities2,716.4 3,188.2

Share capital652.1 652.2

Reserves1,429.4 1,394.3

Total equity2,081.52,046.5

Total equity and liabilities4,797.95,234.7

* The comparative information has been restated to reflect the revision of the accounting policy for Intangible assets. Refer to the

'General information and significant matters' section in the notes for a reconciliation to the previously reported information.

The above statement should be read in conjunction with the accompanying notes.

The Directors of Genesis Energy Limited authorise these condensed consolidated interim financial statements for issue on behalf of

the Board.

Barbara Chapman

Chairman of the Board

Date: 25 February 2022

Catherine Drayton

Chairman of the Audit and Risk Committee

Date: 25 February 2022

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

9
GENESIS INTERIM REPORT 2022

Consolidated cash flow statement

For the six months ended 31 December 2021

Note

31 Dec 2021

unaudited

$ million

Restated*


31 Dec 2020

unaudited

$ million

Receipts from customers1,544.5 1,449.4

Interest received0.3 0.1

Payments to suppliers and related parties(1,349.5)(1,145.9)

Payments to employees(67.4)(57.3)

Tax paid(4.4)(1.7)

Operating cash flows123.5 244.6

Proceeds from disposal of property, plant and equipment0.2 -

Proceeds from assets under finance lease0.4 -

Payments to associates and joint ventures(10.3)(3.9)

Purchase of assets under finance lease(5.5) -

Purchase of property, plant and equipment(24.0)(27.0)

Purchase of oil and gas assets(8.7)(10.2)

Purchase of intangibles

(excluding emission units and deferred customer acquisition costs)(9.4)(9.1)

Investing cash flows(57.3)(50.2)

Proceeds from lease incentives - 11.1

Proceeds from borrowings100.0 200.0

Repayment of borrowings(78.3)(255.3)

Interest paid and other finance charges(28.3)(28.4)

DividendsD3(91.8)(72.6)

Acquisition of treasury shares(0.5)(0.4)

Financing cash flows(98.9)(145.6)

Net increase (decrease) in cash and cash equivalents(32.7)48.8

Cash and cash equivalents at 1 July104.3 32.5

Cash and cash equivalents at 31 December71.6 81.3

Reconciliation of net profit to operating cash flowsNote

31 Dec 2021

unaudited

$ million

Restated*

31 Dec 2020

unaudited

$ million

Net profit for the period84.7 52.0

Net (gain) loss on disposal of property, plant and equipment - 1.1

Finance expense excluding time value of money adjustments on provisions28.4 28.3

Change in advances to associates and joint ventures receivable and change in lease receivable

4.5 -

Change in rehabilitation and contractual arrangement provisions1.8 2.9

Items classified as investing/financing activities34.7 32.3

Depreciation, depletion and amortisation expenseA3106.0 102.1

Revaluation of generation assetsB1 - (0.5)

Impairment of non-current assets2.5 -

Change in fair value of financial instrumentsE2(37.0)1 0.1

Deferred tax expense7.2 (16.5)

Change in capital expenditure accruals2.1 3.5

Share of associates and joint ventures3.4 0.4

Other non-cash items1.4 5.7

Total non-cash items85.6 104.8

Change in receivables and prepayments110.4 27.0

Change in inventories(90.8)(8.5)

Change in emission units on hand(26.7)(9.8)

Change in deferred customer acquisition costs0.9 0.3

Change in payables and accruals(98.7)11.5

Change in tax receivable/payable21.8 35.3

Change in provisions1.6 (0.3)

Movements in working capital(81.5)55.5

Net cash inflow from operating activities123.5 244.6

* The comparative information has been restated to reflect the revision of the accounting policy for Intangible assets. Refer to the

'General information and significant matters' section in the notes for a reconciliation to the previously reported information.

The above statement should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

10
GENESIS INTERIM REPORT 2022

Notes to the condensed consolidated interim financial statements

For the six months ended 31 December 2021

General information

The unaudited condensed consolidated interim financial statements comprise Genesis Energy Limited ('Genesis'), its subsidiaries,

controlled entities and the Group's interests in associates and joint arrangements (together, the 'Group') for the six month period

ended 31 December 2021.

Genesis is registered under the Companies Act 1993. It is a mixed ownership model company, majority owned by the 'Crown', bound

by the requirements of the Public Finance Act 1989. Genesis is listed on the New Zealand Stock Exchange ('NZX') and the Australian

Securities Exchange ('ASX') and has bonds listed on the NZX debt market. Genesis is an FMC reporting entity under the Financial

Markets Conduct Act 2013.

The core business of the Group and activities carried out by each segment is disclosed in note A2.

Basis of preparation

The condensed consolidated interim financial statements:

• Comply with New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting and International

Accounting Standard 34 Interim Financial Reporting;

• Do not include all the information and disclosures required in the annual financial statements. Consequently, they should be read

in conjunction with the annual financial statements and related notes included in Genesis Energy's Annual Report for the year

ended 30 June 2021 ('2021 Annual Report');

• Are presented in New Zealand dollars rounded to the nearest 100,000.

Critical accounting estimates and judgements

The basis of critical accounting estimates and judgements are the same as those disclosed in the 2021 Annual Report.

COVID-19

To date the economic disruption caused from the COVID-19 pandemic has not had a material impact on reported results. This is

mainly due to the fact that Genesis provides an essential service.

Seasonality of operations

Fluctuations in seasonal weather patterns can have a significant impact on supply and demand and therefore the generation of

electricity, which in turn can have a positive or negative impact on reported results.

Accounting policies

During the period the Group implemented the IFRS Interpretations Committee ('IFRIC') agenda decision on Configuration and

Customisation costs incurred in implementing Software-as-a-Service ('SaaS'). The accounting policies set out in the 2021 Annual

Report have been applied consistently to all periods presented, with the exception of those impacted by the IFRIC agenda decision.

There have been no other changes in accounting policies or methods of computation since 30 June 2021.

Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing

Software-as-a-Service

As noted in the 2021 Annual Report the IFRIC released an agenda decision in April 2021 in relation to accounting for configuration

and customisation costs incurred in implementing SaaS arrangements. SaaS arrangements are service contracts providing the Group

with the right to access the cloud provider’s application software over the contract period. The agenda decision clarifies how current

accounting standards should be applied to these types of arrangements.

The Group's accounting policy has historically been to capitalise costs directly attributable to the configuration and customisation of

SaaS arrangements as intangible assets in the Balance Sheet, aligned to the underlying subscription contract. Following the adoption

of the above IFRIC agenda decision, current SaaS arrangements were identified and assessed to determine if the Group has control

of the software. For those arrangements where the Group does not have control of the developed software, the configuration and

customisation costs previously capitalised have been derecognised and prospectively these costs are now recognised as operating

expenses when the services are received; the ongoing fees to obtain access to the cloud provider's application software continue

to be an operating expense. Amounts paid to the supplier in advance of the commencement of the service period, including for

configuration or customisation that are not distinct from the underlying SaaS, are treated as a prepayment.

Costs may be incurred for the integration of the SaaS or the development of software code that enhances or modifies existing on-

premise systems. This spend continues to meet the definition of, and recognition criteria for, an intangible asset. These costs are

recognised as software assets and amortised over the useful life of the software on a straight line basis.

The change in accounting policy has been applied retrospectively and as a result the comparative information has been restated. The

impact of the accounting policy change is disclosed on the following page.

General information and significant matters

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

11
GENESIS INTERIM REPORT 2022

Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing

Software-as-a-Service (continued)

Consolidated comprehensive income statement

For the six months ended 31 December 2020

As originally

presented

$ million

SaaS agenda

decision

$ million

Restated

$ million

EBITDAF217.3 (1.3)216.0

Depreciation, depletion and amortisation(102.5)0.4 (102.1)

Profit before income tax73.8 (0.9)72.9

Income tax expense( 2 1.1)0.2 (20.9)

Net profit after tax52.7 (0.7)52.0

The restatement primarily impacts the Retail segment with only $0.1 million of the amortisation adjustment being allocated to the

Corporate segment.

Earnings per share decreased from 5.09 cents per share to 5.02 cents per share as a result of applying the IFRIC agenda decision.

Consolidated cash flow statement

For the six months ended 31 December 2020

As originally

presented

$ million

SaaS agenda

decision

$ million

Restated

$ million

Operating cash flows245.9 (1.3)244.6

Investing cash flows(51.5)1.3 (50.2)

Consolidated balance sheet

As at 30 June 2021

As originally

presented

$ million

SaaS agenda

decision

$ million

Restated

$ million

Receivables and prepayments343.5 1.9 345.4

Intangible assets404.9 (9.1)395.8

Deferred tax(621.5)2.0 (619.5)

Retained earnings60.9 5.2 66.1

Consolidated balance sheet

As at 1 July 2020

As originally

presented

$ million

SaaS agenda

decision

$ million

Restated

$ million

Receivables and prepayments238.1 0.9 239.0

Intangible assets358.3 (5.7)352.6

Deferred tax(631.6)1.4 (630.2)

Retained earnings( 7 7. 7 )3.4 (74.3)

Amendment to NZ IFRS 9, NZ IAS 39 and NZ IFRS 7 - Interest rate benchmark reform

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank

offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). These alternative risk-free rates are gradually

being adopted; however there are uncertainties around the timing and method of transition.

As noted in the 2021 Annual Report, the IBOR reform only impacts the Group’s Cross Currency Interest Rate Swaps ('CCIRS') that are

linked to USD LIBOR. The Group manages interest rate risk on the fixed rate United States Private Placement (‘USPP’) notes (notional

value US$150.0 million) by swapping back to floating rates, maturing in 2026 and 2027. As such, LIBOR is documented in hedge

relationships for CCIRS.

The Group adopted the Phase 1 amendments of the Interest Rate Benchmark Reform in the prior year. Despite the cessation date for

certain LIBOR tenors announced as 30 June 2023, there is still uncertainty around transition to alternative rates, for example when

existing rates will no longer be representative and the need for a liquid market. The Group has applied the relief provisions in the

accounting standards to transition the hedge relationships to the alternative benchmark without de-designation.

Phase 2 amendments to Interest Rate Benchmark Reform apply to the Group from 1 July 2021 and address issues that may affect

Genesis at the point of transition from LIBOR to the alternative benchmark rate. The amendments are relevant for the following types

of hedging relationships:

• Fair value hedges where LIBOR is designated as the fair value hedge of fixed rate debt in respect of the USD LIBOR risk component

of the CCIRS (notional value of US$150.0 million);

• Cash flow hedge where LIBOR is designated as a cash flow hedge component of the CCIRS (notional value of NZ$193.2 million).

The Group does not expect the transition to alternative benchmark rates to lead to discontinuation of hedge accounting relationships.

The Group continues to work through the transition plan including actions required to update processes, systems and documentation.


NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

12
GENESIS INTERIM REPORT 2022

A1. Underlying EBITDAF and underlying earnings

Underlying EBITDAF and underlying earnings are performance measures used internally to provide insight into the operating

performance of the Group by adjusting for items that are outside Management's control or items that relate to strategic rather than

operational decisions. Items are excluded from underlying EBITDAF and underlying earnings when they meet the criteria outlined in

the Group's non-GAAP financial information policy (refer to www.genesisenergy.co.nz/investors/governance/documents for a copy

of the policy). These measures are considered to be non-GAAP performance measures. They should not be viewed in isolation nor

considered a substitute for measures reported in accordance with New Zealand Equivalents to International Financial Reporting

Standards ('NZ IFRS'). Underlying EBITDAF and underlying earnings are used by many companies, however, because these measures

are not defined by NZ IFRS they may not be uniformly defined or calculated by all companies. Accordingly, these measures may not

be comparable.

A. Financial performance

Reconciliation of reported net profit to underlying earningsNote

31 Dec 2021

unaudited

$ million

Restated

31 Dec 2020

unaudited

$ million

Net profit for the period84.7 52.0

Change in fair value of financial instrumentsE2 (37.0)1 0.1

Revaluation of generation assetsB1 - (0.5)

Impairment of non-current assets 2.5 -

Unrealised loss on revaluation of carbon units held for trading0.6 1.1

Adjustments before tax expense(33.9)10.7

Tax expense on adjustments9.5 (3.0)

Adjustments after tax expense(24.4)7. 7

Underlying earnings 60.3 59.7

CentsCents

Underlying EPS5.78 5.76


There were no differences between reported EBITDAF and underlying EBITDAF.

6 months ended

SegmentActivity

RetailSupply of energy (electricity, gas and LPG) and related services to end users.

Wholesale

Supply of electricity to the wholesale electricity market, supply of gas and LPG to wholesale customers and

the Retail segment and the sale and purchase of derivatives to fix the price of electricity.

Kupe

Exploration, development and production of gas, oil and LPG. Supply of gas and LPG to the Wholesale

segment and supply of light oil.

Corporate

Head office functions, including human resources, finance, corporate relations, property management, legal,

corporate governance and strategy.


The segments are based on the different products and services offered by the Group. All segments operate in New Zealand. No

operating segments have been aggregated. The Group has no individual customers that account for 10.0 per cent or more of the

Group's external revenue (31 December 2020: none).

Reconciliation of expenses in the consolidated comprehensive income statement to the segment note

Expenses in the consolidated comprehensive income statement includes the following line items in the segment note: external costs,

employee benefits and other operating expenses.

Intersegment revenue

Sales between segments is based on transfer prices developed in the context of long-term contracts. The electricity transfer price per

MWh charged between Wholesale and Retail was $105.53 (31 December 2020: $89.51).

A2. Segment reporting

The Group reports activities under four segments as follows:

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

13
GENESIS INTERIM REPORT 2022

Six months ended 31 December 2021

Retail

unaudited

$ million


Wholesale

unaudited

$ million

Kupe

unaudited

$ million


Corporate

unaudited

$ million

To t a l

unaudited

$ million

Electricity685.0 409.8 - - 1,094.8

Gas95.5 68.6 - - 164.1

LPG45.7 9.9 - - 55.6

Oil - - 13.7 - 13.7

Emissions on fuel sales and electricity contracts0.3 18.2 - - 18.5

Emission unit revenue from trading - 33.7 - - 33.7

Other revenue0.8 0.1 0.5 0.6 2.0

Total external revenue827.3 540.3 14.2 0.6 1,382.4

Electricity – intersegment - 347.1 - - 3 4 7.1

Gas – intersegment - 49.2 38.1 - 87.3

LPG – intersegment - 15.1 10.7 - 25.8

Emissions on fuel sales – intersegment - - 6.1 - 6 .1

Total segment revenue827.3951.769.1 0.6 1,848.7

Electricity purchases - (405.5) - - (405.5)

Electricity network, transmission, levies and meters(266.6)( 7. 6 ) - - (274.2)

Fuel consumed in electricity generation - (106.6) - - (106.6)

Gas purchases - (107.1) - - ( 1 0 7.1 )

Gas network, transmission, levies and meters(35.9)(8.8) - - (44.7)

LPG purchases, inventory changes and transportation costs(7.5)( 7. 6 )(0.1) - (15.2)

Oil inventory changes, storage and transportation costs - - (0.5) - (0.5)

Emissions associated with electricity generation - (17.5) - - ( 1 7. 5 )

Emissions associated with fuel sales - (16.2)(11.9) - ( 2 8 .1 )

Emission unit expenses from trading - (22.9) - - (22.9)

Other costs(0.2) - (5.3) - (5.5)

Total external costs(310.2)(699.8)( 1 7. 8 ) - ( 1 , 0 2 7. 8 )

Electricity purchases – intersegment(347.1) - - - ( 3 4 7.1 )

Fuel consumed in electricity generation – intersegment - (38.1) - - ( 3 8 .1 )

Gas purchases – intersegment(49.2) - - - (49.2)

LPG purchases, inventory changes and transportation costs – intersegment(15.1)(10.7) - - (25.8)

Emission costs – intersegment - (6.1) - - (6 .1 )

Total segment costs(721.6)(754.7)( 1 7. 8 ) - (1,494.1)

Gross margin105.71 9 7. 051.3 0.6 354.6

Employee benefits(32.0)(16.5) - (15.5)(64.0)

Other operating expenses(39.6)(20.3)(11.0)(9.4)(80.3)

Earnings before net finance expense, income tax, depreciation,

depletion, amortisation, impairment, fair value changes and other

gains and losses (EBITDAF)

34.1160.2 40.3 (24.3)210.3

Depreciation, depletion and amortisation(11.9)(69.9) (20.6) (3.6)(106.0)

Impairment of non-current assets(2.0)(0.5) - - (2.5)

Change in fair value of financial instruments - 3 7.1 - (0.1)3 7. 0

Share of associates and joint ventures(3.0)(0.4) - - (3.4)

Other gains (losses)0.1 12.9 - 0.3 13.3

Profit (loss) before net finance expense and income tax 17.3 139.4 19.7 ( 2 7. 7 )148.7

Finance revenue0.1 - - 0.1 0.2

Finance expense(0.2)(1.8)(1.4)(27.2)(30.6)

Profit (loss) before income tax17.2 1 3 7. 618.3 (54.8)118.3

Other segment information

Capital expenditure excluding leased assets11.0 20.0 6.5 0.6 38.1

A2. Segment reporting (continued)

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

14
GENESIS INTERIM REPORT 2022

A2. Segment reporting (continued)

Six months ended 31 December 2020

Restated

retail

unaudited

$ million


Wholesale

unaudited

$ million

Kupe

unaudited

$ million

Restated

corporate

unaudited

$ million

Restated

total

unaudited

$ million

Electricity695.8 485.2 - - 1,181.0

Gas88.0 58.8 - - 146.8

LPG44.1 5.4 - - 49.5

Oil - - 10.8 - 10.8

Emissions on fuel sales and electricity contracts0.2 11.9 - - 12.1

Emission unit revenue from trading - 17.3 - - 17.3

Other revenue1.2 0.2 0.1 0.4 1.9

Total external revenue829.3 578.8 10.9 0.4 1,419.4

Electricity – intersegment - 310.0 - - 310.0

Gas – intersegment - 44.2 47.9 - 92.1

LPG – intersegment - 11.9 14.6 - 26.5

Emissions on fuel sales – intersegment - - 4.9 - 4.9

Total segment revenue829.3 944.9 78.3 0.4 1,852.9

Electricity purchases - (453.5) - - (453.5)

Electricity network, transmission, levies and meters(266.4)(8.0) - - (274.4)

Fuel consumed in electricity generation - (112.8) - - (112.8)

Gas purchases(0.4)(105.7) - - (106.1)

Gas network, transmission, levies and meters(35.3)(10.5) - - (45.8)

LPG purchases, inventory changes and transportation costs(8.1)(2.8) - - (10.9)

Emissions associated with electricity generation - (19.2) - - (19.2)

Emissions associated with fuel sales - (13.7)(10.0) - (23.7)

Emission unit expenses from trading - (15.3) - - (15.3)

Other costs - - (8.1) - (8.1)

Total external costs(310.2)(741.5)(18.1) - (1,069.8)

Electricity purchases – intersegment(310.0) - - - (310.0)

Fuel consumed in electricity generation – intersegment - (47.9) - - (47.9)

Gas purchases – intersegment(44.2) - - - (44.2)

LPG purchases, inventory changes and transportation costs – intersegment(11.9)(14.6) - - (26.5)

Emission costs – intersegment - (4.9) - - (4.9)

Total segment costs(676.3)(808.9)(18.1) - (1,503.3)

Gross margin153.0 136.0 60.2 0.4 349.6

Employee benefits(26.8)(15.9) - (14.0)(56.7)

Other operating expenses(39.1)(18.4)(10.8) (8.6)(76.9)

Earnings before net finance expense, income tax, depreciation,

depletion, amortisation, impairment, fair value changes and other

gains and losses (EBITDAF)

87.1 101.7 49.4 (22.2)216.0

Depreciation, depletion and amortisation(13.3)(64.7)(20.2)(3.9)(102.1)

Revaluation of generation assets - 0.5 - - 0.5

Change in fair value of financial instruments - (10.8)0.1 0.6 (1 0.1)

Share of associates and joint ventures(0.2)(0.2) - - (0.4)

Other gains (losses) - (1.2) - 0.2 (1.0)

Profit (loss) before net finance expense and income tax 73.6 25.3 29.3 (25.3)102.9

Finance revenue - - - 0.3 0.3

Finance expense(0.3)(1.6)(1.3)(27.1)(30.3)

Profit (loss) before income tax73.3 23.7 28.0 (52.1)72.9

Other segment information

Capital expenditure excluding leased assets9.2 15.0 11.9 4.9 41.0

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

15
GENESIS INTERIM REPORT 2022

A3. Depreciation, depletion and amortisation

31 Dec 2021

unaudited

$ million

Restated

31 Dec 2020

unaudited

$ million

Property, plant and equipment75.3 70.6

Oil and gas assets19.5 19.0

Intangibles (excluding amortisation of deferred customer acquisition costs)11.2 12.5

106.0 102.1

6 months ended

B1. Property, plant and equipment

6 months ended

31 Dec 2021

unaudited

$ million

Year ended

30 Jun 2021

audited

$ million

Opening balance3,485.4 3,367.7

Additions25.7 68.0

Revaluation of generation assets

Increase taken to revaluation reserve - 163.6

Increase taken to the income statement - 27.9

Change in rehabilitation and contractual arrangement assets - 1.7

Transfer from/(to) intangible assets0.7 (1.6)

Disposals(0.1 )(6.0)

Depreciation expense recognised in inventories(0.6)(1.3)

Depreciation expense(75.3)(134.6)

Closing balance3,435.8 3,485.4

Property, plant and equipment includes $68.9 million of leased assets (30 June 2021: $69.1 million).

Generation assets

A valuation of generation assets has been undertaken as at 31 December 2021; the results indicate the carrying value approximates

the fair value and, as a result, the Group has not undertaken a full revaluation of generation assets at 31 December 2021. The last

revaluation of generation assets occurred on 30 June 2021.

The valuation is based on a discounted cash flow model prepared by Management, calculated by generating scheme except for

the Huntly site where it is calculated by type of unit (units 1 to 4, unit 5 and unit 6). As the key inputs into the valuation are based

on unobservable market data, the valuation is classified as level 3 in the fair value hierarchy. It requires significant judgement and

therefore there is a range of reasonably possible assumptions that could be used in estimating the fair value. Refer to the 2021 Annual

Report for an overview of the fair value hierarchy.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

B. Operating assets

16
GENESIS INTERIM REPORT 2022

B2. Oil and gas assets

6 months ended

31 Dec 2021

unaudited

$ million

Year ended

30 Jun 2021

audited

$ million

Opening balance293.9 307.4

Additions6.5 22.0

Depreciation and depletion expense(19.5)(35.5)

Closing balance280.9 293.9

Since 30 June 2021 the only change to the estimated remaining reserves disclosed in the 2021 Annual Report was in relation to actual

production for the six months ended 31 December 2021 of 16.0 PJe. The estimated remaining reserves balance as at 31 December 2021

was 202.3 PJe for proved reserves (1P) and 292.8 PJe for proved and probable reserves (2P) (30 June 2021: 218.3 PJe and 308.8 PJe

respectively).

B1. Property, plant and equipment (continued)

Significant

unobservable inputs Method used to determine input

Sensitivity

range

Increase/(decrease)

in fair value of

generation assets

Interrelationships between

unobservable inputs

Wholesale electricity

price path

The average annual wholesale electricity price ranged

between $78 per MWh and $139 per MWh referenced

to the Otahuhu 220KV locational node from January

2022 to June 2041.

+10%

- 10%

$532 million

($532) million

Hydrological inflows affect

generation volumes, as well as

wholesale electricity prices.

Generation volumes

In-house modelling of the wholesale electricity market.

The generation volumes used in the valuation range

between 2,679 GWh and 7,025 GWh per annum. The

low end of the range relates to periods where there is

no thermal generation.

+10%

- 10%

$410 million

($410) million

Wholesale electricity

prices affect the amount of

generation.

Discount ratePre-tax equivalent discount rate of 9.3%.

+1%

- 1%

($346) million

$455 million

Discount rate is independent

of wholesale electricity prices

and generation volumes.

Key estimates and judgements

Wholesale electricity price path

The wholesale electricity price path is the key driver of changes

in the valuation. The price path is an average of the internally

generated price path and price paths published by two

independent third parties, and as a result reflects the uncertainty

surrounding Tiwai Point smelter operating beyond 2024 and the

impact this could have on future prices

Internally generated price path

The internally generated price path assumes wholesale

electricity demand will continue to grow based on the latest

available industry analysis and Genesis' view of future economic

growth. Forecast hydrology is based on 83 years of historical

hydrological inflow data. New and retiring generation plant

assumptions are based on publicly available information and

Genesis' view on wholesale electricity prices required to support

the plant. The internally generated price path assumes that Tiwai

Point smelter will continue to operate beyond 2024.

Price paths published by independent third parties

Independent third party price path assumptions on the future

of Tiwai Point smelter range from Tiwai Point smelter exiting in

2025 through to operating beyond 2025 or the generation load

consumed by Tiwai Point smelter being replaced by other major

industrial loads beyond 2025.

Other key assumptions

The valuation also includes assumptions around market fuel and electricity supply and demand. Our longer term demand assumption

increases from industrial electrification and electric vehicle fleet growth in response to climate change. The impact of COVID-19

has also been considered in the valuation, primarily through the wholesale electricity price path. Our current view is that Genesis’

generation will be less affected by COVID-19 as it is an essential service and the vaccine rollout is well advanced. Changes in

these interrelated factors will impact the wholesale electricity price path and generation volumes. These factors are reviewed for

reasonableness by senior management personnel who are responsible for the price path used by the business.

Significant unobservable inputs in the valuation model were:

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

17
GENESIS INTERIM REPORT 2022

C. Working capital

C1. Receivables and prepayments

31 Dec 2021

unaudited

$ million

30 Jun 2021

restated

$ million

Total trade receivables and accrued revenue176.8291.5

Advances to associates and joint ventures2.6 2.2

Lease receivable7. 9 3.7

Emission units receivable23.0 31.8

Other receivables9.9 10.7

Prepayments14.8 5.5

To t a l235.0 345.4

Current231.6 341.3

Non-current3.4 4.1

To t a l235.0 345.4


Lease receivable

The group enters into lease agreements as a lessor in respect of some of its property leases and vehicles.

Where the Group is a head lessor, the leases have been classified as finance leases as the lease transfers substantially all of the risks

and rewards incidental to ownership of the underlying asset. Where the Group is an intermediate lessor, the head lease and the

sublease are accounted for as two separate contracts. Subleases that transfer substantially all of the risks and rewards of ownership to

the lessee are classified as finance leases, all other subleases are classified as operating leases. The assessment is based on the right-

of-use asset arising from the head lease.

Amounts due from lessees under finance leases are recognised as lease receivables. Finance lease income is allocated to individual

periods based on a constant periodic rate of return. Rental income from operating leases is recognised on a straight line basis over the

term of the lease.

C2. Inventories

31 Dec 2021

unaudited

$ million

30 Jun 2021

audited

$ million

Fuel 142.3 4 7. 0

Petroleum products2.6 2.3

Consumables and spare parts30.0 29.5

Emission units held for trading9.1 14.4

To t a l184.0 93.2


Fuel, petroleum, consumables and spare parts

Fuel inventories mainly consist of coal used in electricity production. Fuel inventories (excluding natural gas) expensed during the

period amounted to $28.8 million (31 December 2020: $63.0 million).


NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

18
GENESIS INTERIM REPORT 2022

Fair value of borrowings held at amortised cost

31 Dec 2021

Carrying value

unaudited

$ million

31 Dec 2021

Fair value

unaudited

$ million

30 Jun 2021

Carrying value

audited

$ million

30 Jun 2021

Fair value

audited

$ million

Level one

Green bonds101.2 101.8 - -

Retail term notes - - 101.0 103.4

Capital bonds469.0 477.2 474.7 487.6

Level two

Term loan facility30.0 31.2 30.0 31.3

Wholesale term notes322.6 330.9 222.7 239.2

USPP234.9 240.7 235.2 241.1


The carrying value of all other borrowings approximates their fair values.

D. Funding

D1. Borrowings

31 Dec 2021

unaudited

$ million

30 Jun 2021

audited

$ million

Sustainable Financing

Green bonds101.2 -

Other Financing

Revolving credit facility - 10.0

Term loan facility30.0 30.0

Money market and commercial paper194.8 259.8

Wholesale term notes322.6 222.7

Retail term notes - 101.0

Capital bonds469.0 474.7

United States Private Placement ('USPP')234.9 235.2

Lease liability93.4 94.4

To t a l1,445.9 1,427.8

Current3 6 7. 0 379.7

Non-current1,078.9 1,048.1

To t a l1,445.9 1,427.8


Green Bonds

The Group's retail term notes were designated as a Green Bond on 3 November 2021. The terms and conditions remain unchanged,

the expiry remains in March 2022.

Wholesale term notes

A $100.0 million wholesale term note was issued in December 2021. The note expires in December 2028.

Revolving credit facilities

Available revolving credit facilities

31 Dec 2021

unaudited

$ million

30 Jun 2021

audited

$ million

Sustainable Financing250.0 -

Other Financing295.0 445.0

Total available revolving credit facilities545.0 445.0

Revolving credit drawn down (excluding accrued interest) - 10.0

Total undrawn revolving credit facilities545.0 435.0

During the period, the Group launched its Sustainable Finance Programme, as part of this programme $200.0 million of existing

facilities were converted to be sustainably linked; additionally $50.0 million sustainbly linked revolving credit facilities were added.

The Sustainable Finance facilities have variable payments that are linked to performance against the Group's sustainability targets.

There was also $50.0 million of other financing secured.

In addition, there is a $100.0 million undrawn bridge facility in place to cover refinancing of the Green Bond in March 2022.

The undrawn facilities ensure the Group will have sufficient funds to meet its liabilities when due, under both normal and stressed

conditions.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

19
GENESIS INTERIM REPORT 2022

E. Risk management

E1. Derivatives

31 Dec 2021

unaudited

$ million

30 Jun 2021

audited

$ million

Electricity swaps and options and electricity power purchase agreements ('PPA')(57.3)(136.5)

Oil price swaps(4.9)(3.2)

Interest rate swaps10.2 (9.6)

Cross-currency interest rate swaps (‘CCIRS’)36.6 35.9

Foreign exchange contracts1.4 5.2

Coal price swaps0.9 8.0

Other derivatives2.3 0.9

To t a l(10.8)(99.3)

Current assets7 7. 0 320.1

Non-current assets68.9 160.5

Current liabilities(75.9)(404.3)

Non-current liabilities(80.8)(175.6)

To t a l(10.8)(99.3)

The process and method of valuing derivatives is outlined in note E3.

D2. Finance expense

31 Dec 2021

unaudited

$ million

31 Dec 2020

unaudited

$ million

Interest on borrowings (excluding capital bonds and lease liability)13.6 13.9

Interest on capital bonds12.8 12.8

Interest on lease liability1.8 1.8

Total interest on borrowings28.2 28.5

Other interest and finance charges0.7 0.5

Time value of money adjustments on provisions2.2 2.0

Capitalised finance expenses(0.5)(0.7)

To t a l30.6 30.3

6 months ended

D3. Dividends

Imputation

unaudited

Cents per

share

unaudited

$ million

unaudited

Imputation

unaudited

Cents per

share

unaudited

$ million

unaudited

Dividends declared and paid during the period

Prior period final dividend80%8.80 91.8 80%8.675 89.9

Less shares issued under the dividend

reinvestment plan

- (17.3)

Cash dividend paid91.8 72.6

Dividends declared subsequent to reporting date

Current period interim dividend80% 8.70 90.880%8.60 89.8

6 months ended

31 Dec 2021

6 months ended

31 Dec 2020

Level two - Fair value calculation

The valuation of the term loan facility and the wholesale term notes is based on estimated discounted cash flow analyses, using

applicable market yield curves adjusted for the Group's credit rating. The credit-adjusted market yield curves used in the valuation at

the reporting date ranged from 1.5 per cent to 3.7 per cent (30 June 2021: 0.8 per cent to 2.1 per cent).

The valuation of USPP is based on estimated discounted cash flow analyses, using applicable United States market yield curves

adjusted for the Group's credit rating. The credit-adjusted market yield used in the valuation at the reporting date was 1.8 per cent (30

June 2021: 1.4 per cent).

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

20
GENESIS INTERIM REPORT 2022

E3. Fair value measurement

Fair value hierarchy

The Group's assets and liabilities measured at fair value are categorised into one of three levels. The levels are outlined in the 2021

Annual Report.

The Group's policy is to recognise transfers into and out of fair value hierarchy levels at the date the change in circumstances

occurred. There were no transfers between levels one, two and three during the period (31 December 2020: nil).

Level two and three items carried at fair value

All derivatives disclosed in E1 other than electricity swaps and options and PPAs are considered level two. The $57.3 million electricity

swaps and options and PPAs net liability comprises a $1.2 million asset classified as level two and a $58.5 million liability classified

as level three (30 June 2021: $7.4 million liability and $129.1 million liability respectively). Emission units held for trading, recorded

in inventory, are level two instruments. The carrying value of the units as at 31 December 2021 was $9.1 million (30 June 2021: $14.4

million). Generation assets, recorded in property, plant and equipment, are considered to be level three. The carrying value of

generation assets as at 31 December 2021 was $3,219.4 million (30 June 2021: $3,273.2 million).

Valuation of level two items carried at fair value

The fair values of level two derivatives and emission units held for trading are determined using discounted cash flow models. The key

inputs in the valuation models are the same as those disclosed in the 2021 Annual Report.

Valuation of level three items carried at fair value

Valuation method and process

The method and process used to value level three generation assets and derivatives is consistent with that disclosed in the 2021

Annual Report.

E2. Change in fair value of financial instruments

31 Dec 2021

unaudited

$ million

31 Dec 2020

unaudited

$ million

CCIRS(5.2)(6.5)

Interest rate swaps(6.4)(3.4)

Fair value interest rate risk adjustment on borrowings11.9 10.2

Fair value hedges – gain (loss)0.3 0.3

Cash flow hedges – hedge ineffectiveness – gain (loss) - 0.1

Electricity swaps and options and PPAs41.5 (12.9)

Other derivatives(4.8)2.4

Derivatives not designated as hedges – gain (loss)36.7 (10.5)

Total change in fair value of financial instruments3 7. 0 (1 0.1)

6 months ended

31 Dec 2021

unaudited

30 Jun 2021

audited

Price path

$78 per MWh to $139 per MWh over the period

from 1 January 2022 to 28 February 2045.

$81 per MWh to $190 per MWh over the period

from 1 July 2021 to 4 March 2041.

Impact of increase/decrease in

price path on fair value

A 10% increase would decrease the liability by

$64.9 million. A 10% decrease would increase

the liability by $55.4 million.

A 10% increase would increase the liability by

$5.9 million. A 10% decrease would decrease

the liability by $6.2 million.

Discount rate0.8% - 5.8%0.2% - 4.85%

Valuation of electricity swaps and options and PPAs

The valuation is based on a discounted cash flow model. The key

inputs and assumptions in the model are: the callable volumes,

strike price and option fees outlined in the agreement, the

wholesale electricity price path ('price path'), 'day one' gains

and losses, and the discount rate. The options are deemed to be

called when the price path is higher than the strike prices after

taking into account obligations relating to the specific terms of

each contract. No calling is required for the swaps and there are

no option fees. The price path is the significant unobservable

input in the valuation model. Refer to B1 for information in

relation to the method and judgements used to determine the

price path.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

21
GENESIS INTERIM REPORT 2022

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Reconciliation of level three electricity swaps and options and PPAs

6 months ended

31 Dec 2021

unaudited

$ million

Year ended

30 Jun 2021

audited

$ million

Opening balance(1 2 9.1 )4.0

Electricity revenue20.9 4 7.4

Change in fair value of financial instruments33.0 (90.0)

Total gain (loss) in the income statement53.9 (42.6)

Total gain (loss) recognised in other comprehensive income36.8 (220.2)

Settlements(7.0)155.4

Sales(1 3.1 )(25.7)

Closing balance(58.5)(129.1)

The change in fair value of financial instruments includes an unrealised gain of $34.8 million (30 June 2021: $87.4 million loss).


Deferred ‘day one’ gains (losses)

There is a presumption that when derivative contracts are entered into on an arm's length basis, and no payment is received or paid on

day one, the fair value at inception would be nil. The contract price of non-exchange traded electricity derivative contracts and PPAs

are agreed on a bilateral basis, the pricing for which may differ from the prevailing derived market price for a variety of reasons. In these

circumstances, an adjustment is made to bring the initial fair value of the contract to zero at inception. The adjustment is called a 'day

one' gain (loss) and is deferred and amortised, based on expected call volumes over the term of the contract. The following table details

the movements and amounts of deferred 'day one' gains (losses) included in the fair value of level three electricity swaps and options:

6 months ended

31 Dec 2021

unaudited

$ million

Year ended

30 Jun 2021

audited

$ million

Opening balance100.7 118.4

New derivatives24.4 -

Amortisation of existing derivatives(11.6)( 1 7. 7 )

Closing balance113.5 100.7

F. Other

F1. Related party transactions

The majority shareholder of Genesis is the Crown. The Group transacts with Crown-controlled and related entities independently and

on an arm's length basis for the following goods and services: royalties, emissions obligations, scientific consultancy services, electricity

transmission, postal services, rail services and energy-related products (including electricity derivatives). All transactions with Crown-

controlled and related entities are based on commercial terms and conditions and relevant market drivers.

During the period the Crown received $47.0 million dividends (31 December 2020: $46.1 million) of which $47.0 million was paid in

cash (31 December 2020: $37.2 million) and none was paid in shares (31 December 2020: $8.9 million). The Group is also subject to the

Emission Trading Scheme (ETS) which requires the Group to acquire and surrender emission units either directly to the Crown or to third

parties who ultimately remit the units to the Crown. Refer to note A2 for information on the amount expensed in relation to the ETS. The

amount payable in relation to ETS at 31 December 2021 was $126.0 million (30 June 2021: $80.5 million). There were no other individually

significant transactions with the Crown during the period (31 December 2020: nil).

The Group has five significant electricity swap and option contracts with Meridian Energy, a Crown-controlled entity. The electricity

swap and option contracts period and profile vary between the range of 12.5MW and 150MW, from the period 1 January 2011 to 31

December 2025. Additionally, the Group has two significant power purchase agreements with Mercury NZ, a Crown-controlled entity. The

agreements are for variable volumes based on the production of the related site, with the latest expiry date being February 2045.

Other transactions with Crown-controlled and related entities, which are collectively but not individually significant, relate to the sale

of electricity derivatives. Approximately 14.1 per cent of the value of electricity derivative assets and approximately 34.0 per cent of the

value of electricity derivative liabilities held at the reporting date were held with Crown-controlled and related entities (30 June 2021:

10.3 per cent and 29.2 per cent respectively). The contracts expire at various times; the latest expiry date is February 2045.

E3. Fair value measurement (continued)

22
GENESIS INTERIM REPORT 2022

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

F2. Commitments

As at 31 December 2021 the Group had $22.8 million of capital commitments (30 June 2021: $21.1 million).

F3. Contingent assets and liabilities

No new contingent assets or liabilities have arisen since 30 June 2021 and there has been no change in the contingent liabilities

disclosed in the 2021 Annual Report.

F4. Arbitration decision in respect of a carbon liability dispute

In July 2021, following an arbitration process, Genesis settled a contractual dispute relating to the carbon terms of one of its long

term gas supply agreements. As disclosed in the Group’s 2021 Annual Report, the arbitrator's decision determined that Genesis

was required to meet the carbon liability for gas supplied since 1 January 2018 up to the date the contract expires. The arbitrator's

decision was final and binding. As a result an accrual for $52.9 million was recognised at 30 June 2021, comprised of $45.9 million in

Trade payables and accruals and $7.0 million in Emission obligations. The Trade payable was settled during the six months ended 31

December 2021, reflected in operating cash flows, whilst the Emission obligations forms part of normal settlements.

F5. Subsequent events

The following events occurred subsequent to the reporting date:

• $90.8 million of dividends were declared on 25 February 2022 (refer to note D3);

• On 22 February 2022 Genesis finalised joint venture arrangements with FRV in relation to a new long-term agreement to develop

utility-scale solar developments in New Zealand, delivering up to 500MW of solar capacity;

• On 23 January 2022 the country moved into the Red setting of the Government's Covid-19 traffic light system in response to the

Omicron variant circulating in the community. The move to Red and the further spread of Omicron and other variants through the

community is not expected to have a material financial impact on the business given Genesis provides an essential service and is

implementing an effective response plan that is underpinned by a robust testing programme to keep Genesis staff members safe

and ensure business continuity;

• On 28 January 2022 the Group's FY47 capital bond was designated as a Green Bond. The terms and conditions remain unchanged,

with the next interest rate reset in June 2022.

23
GENESIS INTERIM REPORT 2022

Independent Auditor’s Review Report

To the shareholders of Genesis Energy Limited

The Auditor-General is the auditor of Genesis Energy Limited (‘the Company’) and its subsidiaries (the Group). The Auditor-General

has appointed me, Bryce Henderson, using the staff and resources of Deloitte Limited, to carry out the review of the condensed

consolidated interim financial statements (‘interim financial statements’) of the Group on his behalf.

Conclusion

We have reviewed the interim financial statements of the Group on pages 6 to 22, which comprise the consolidated balance sheet

as at 31 December 2021, and the consolidated comprehensive income statement, consolidated statement of changes in equity and

consolidated cash flow statement for the six months ended on that date, and the notes including a summary of significant accounting

policies and other explanatory information.

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements of the Group

do not present fairly, in all material respects, the financial position of the Group as at 31 December 2021, and its financial performance

and cash flows for the six months ended on that date, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim

Financial Reporting.

Basis for Conclusion

We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent

Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the Auditor’s Responsibilities for the

Review of the Interim Financial Statements section of our report.

We are independent of the Group in accordance with the Auditor General’s ethical requirements relating to the audit of the annual

financial statements, which incorporate the relevant independence requirements issued by the New Zealand Auditing and Assurance

Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Our firm carries out other assignments for the Group in the areas of trustee reporting and non-assurance services to the Corporate

Taxpayer Group. These services have not impaired our independence as auditor of the Group.

In addition to these assignments, partners and employees of our firm deal with the Group on normal terms within the ordinary

course of trading activities of the Group. Other than these assignments and trading activities, we have no relationship with, or interests

in the Group.

Directors’ responsibilities for the interim financial statements

The directors are responsible, on behalf of the Group, for the preparation and fair presentation of these interim financial statements

in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the

directors determine is necessary to enable the preparation and fair presentation of the interim financial statements that are free from

material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the review of the interim financial statements

Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires

us to conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken

as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim

Financial Reporting.

A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform

procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and

applying analytical and other review procedures. The procedures performed in a review are substantially less than those performed

in an audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently does not enable us to

obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not

express an audit opinion on these interim financial statements.


Bryce Henderson

for Deloitte Limited

On behalf of the Auditor-General

Auckland, New Zealand

25 February 2022

Pūrongo Arotake Motuhake

INDEPENDENT REVIEW REPORT

Head/Registered Office
Genesis Energy

Level 6, 155 Fanshawe Street,

Wynyard Quarter,

Auckland 1010

P: 64 9 580 2094

E: info@genesisenergy.co.nz

investor.relations@genesisenergy.co.nz

board@genesisenergy.co.nz

media@genesisenergy.co.nz

W: genesisenergy.co.nz

frankenergy.co.nz

---

MARKET RELEASE

Date: 28 FEBRUARY 2022

NZX: GNE / ASX: GNE


Genesis delivers strong HY22 result while investing for future growth



Half Year-ended

December 2021

Half Year-ended

December 2020

Change Year on Year

EBITDAF

1

$210.3 million

$216.0 million

$5.7 million (down 3%)

Net Profit $84.7m $52.0m $32.7 m (up 63%)

Underlying Earnings

2

$60.3m $59.7m $0.6 m (up 1%)

Earnings Per Share 8.1 cps 5.0 cps 3.1cps (up 62%)

Underlying EPS 5.8 cps 5.8 cps ----

Interim dividend 8.7 cps 8.6 cps 0.1cps (up 1%)

Free Cash Flow

3

$152.4m $157.7m $5.3 m (down 4%)


Genesis Energy (ASX: GNE, NZX: GNE) delivered another strong performance in the first half of FY22 with

EBITDAF of $210.3 million, and net profit of $84.7m which is 63% up on the same period last year. The result

underlines the company’s momentum as it invests for future growth in new renewable generation and enhanced

customer experiences.


The Retail segment performed well through a combination of strong margins, improved efficiencies and

customers feeling supported through lockdown. Net customer churn fell for a sixth consecutive quarter and was

13.2% in the half. Our brand net promoter score lifted to its highest level of +26. Netbacks continued to grow

with gas, in particular, performing strongly.


In the Wholesale segment, the flexibility of our assets continues to support the market during periods of high

spot prices. During periods of lower prices, when more renewable generation was available, our portfolio flexed

to benefit from lower spot prices.


Operating expenses rose 8% to $144.3m, which included ongoing investment in our digital transformation, the

Future-gen strategy, and building a pipeline of new solar development options. Additional cost was also incurred

to protect our people and operations from Covid-19, with the introduction of saliva PCR testing at generation

sites and the purchase and deployment of rapid antigen tests across the whole business. Our people have

completed more than 15,500 Rapid Antigen tests to date.


An interim dividend of 8.7 cps and the reintroduction of the Dividend Reinvestment Plan has been approved by

the Board.


Chief Executive Marc England said Genesis has delivered another strong result while building capability for the

future.



1

Earnings before net finance expenses, income tax, depreciation, depletion, amortisation, impairment, Fair Value changes and other

gains and losses. Refer to consolidated comprehensive income statement in the 2022 interim report for a reconciliation from EBITDAF to

Net Profit after tax.

2

Net Profit adjusted for non-cash fair value adjustments and business acquisition costs.

3

Free Cash Flow is EBITDAF, less cash tax paid, net interest costs and stay in business capital expenditure.



“We’re investing in enhanced digital capabilities, new sources of renewable generation, and in maximising the

efficiency and output of our assets, all important for future growth as we manage the transition to a sustainable

future,” England said.


“This will be a pivotal year for the electricity sector and New Zealand’s climate agenda. There is significant

investment in renewables being made, the Emissions Reduction Plan is due from Government and Budget 2022

will allocate capital to our climate response. Genesis has a key role to play with agreements for wind and

geothermal generation, expanding our portfolio into grid-scale solar, and continuing our work to ensure back-

up generation at Huntly supports the transition.”


Future proofing our assets


Genesis undertook three significant investment projects during the period, at Kupe, Tekapo B and the

Waikaremoana Power Scheme. Along with our Kupe joint venture partners, a $72m project was completed that

restored production capability back to 77 TJs per day, equivalent to approximately 15% of New Zealand’s daily

natural gas demand. The joint venture partners are now investigating the potential for drilling another

development well to further increase recovery from the field.


Work started on stage two of a challenging upgrade of our Tekapo B power station that will future-proof it for

decades. The $15m+ project will deliver operational flexibility, reduce running limitations and annual

maintenance costs. It follows the completion of a two-year $26.5m project to install a new intake gate at Tekapo

A in FY21. At Piripaua, on the east coast of the North Island, a $7.7m project is underway to overhaul two

turbines, one this summer and one next summer.


Empowering New Zealand’s sustainable future


Genesis continues to progress its Future-gen strategy, signing new power purchase agreements for wind and

geothermal generation and a joint venture agreement with internationally recognised solar developer, FRV

Australia. Focus is now on building the pipeline of development opportunities.


Huntly Power Station remains a viable alternative to the proposed Lake Onslow pumped hydro scheme due to

its location close to demand, infrastructure already in place, and its accessible workforce. Scenario analysis we

have undertaken through to 2030 shows the electricity sector will be 96% - 98% renewable by the end of the

decade. However, dry year risk and increased renewable intermittency will mean back-up in the form of both

peaking capacity and dry-year energy storage will still be required. Biomass through Huntly’s Rankine units could

provide a relatively low-cost renewable back-up option out to 2040.


FY22 guidance


The FY22 EBITDAF guidance range has been updated to $430 to $440 million subject to hydrological

conditions, gas availability, any material events, one-off expense or other unforeseeable circumstances. FY22

capital expenditure guidance is up to $84 million.

4



Further information on the company’s operations and financing can be found in the HY22 investor presentation

and in the 2022 Interim Report. Both can be found at www.genesisenergy.co.nz/investors

.


ENDS






4

As a result of implementing the IFRS Interpretations Committee ('IFRIC') agenda decision regarding accounting for SaaS configuration and

customisation costs, a total of $11 million has been reclassified from capex to opex. This change has been reflected in guidance.


For investor relations enquiries, please contact:

Tim McSweeney

GM Investor Relations & Market Risk

M: 027 200 5548


For media enquiries, please contact:

Chris Mirams

GM Communications & Media

M: 027 246 1221




About Genesis Energy

Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity,

reticulated natural gas and LPG through its retail brands of Genesis and Frank Energy and is New Zealand’s

largest energy retailer with approximately 500,000 customers. The Company generates electricity from a diverse

portfolio of thermal and renewable generation assets located in different parts of the country. Genesis also has

a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New

Zealand. Genesis had revenue of $NZ3.2 billion during the 12 months ended 30 June 2021. More information

can be found at www.genesisenergy.co.nz

---

Growth through the transition
28February 2022

Marc England Chief Executive Officer

Emma Oettli Acting Chief Financial Officer

HY22 Results Presentation

2.
Disclaimer

This presentation has been prepared by Genesis Energy Limited (‘Genesis

Energy’) for information purposes only.This disclaimer applies to this

document and the verbal or written comments of any person presenting it.

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

investor to evaluate an investment.This presentation should be read in

conjunction with Genesis Energy’s Interim Report for FY22 and

accompanying market releases.

This presentation may contain projections or forward-looking statements.

Forward-looking statements may include statements regarding Genesis

Energy’s intent, belief or current expectations in connection with Genesis

Energy’s future operating or financial performance, or market

conditions.Such forward-looking statements are based on current

expectations and involve risks, uncertainties, assumptions, contingencies

and other factors, many of which are outside Genesis Energy’s

control.Although management may indicate and believe that the

assumptions underlying any projections and forward-looking statements are

reasonable, any of the assumptions could prove inaccurate or incorrect and

there can be no assurance that the results contemplated in those

projections and forward-looking statements will be realised.Actual results

may differ materially from those projected.Genesis Energy gives no

warranty or representation as to its future financial performance or any

future matter.

EBITDAF, underlying earnings and free cash flow are non-GAAP measures.

These non-GAAP measures should not be considered in isolation from, or

construed as a substitute for, other financial measures determined in

accordance with GAAP or NZ IFRS.

While all reasonable care has been taken in compiling this presentation, to

the maximum extent permitted by law, Genesis Energy accepts no

responsibility for any errors or omissions, and no representation is made as

to the accuracy, completeness or reliability of the information, in this

presentation.The information in this presentation does not constitute

financial product, legal, financial, investment, tax or any other advice or a

recommendation and nothing in this presentation should be construed as

an invitation for any subscription for, or purchase of, securities in Genesis

Energy.

All references to $ are to New Zealand dollars, unless otherwise stated.

Except as required by law, or the rules of any relevant securities exchange

or listing authority, Genesis Energy is not under any obligation to update

this presentation at any time after its release, whether as a result of new

information, future events or otherwise.

Agenda
1. Highlights

2. Financial performance

3. Operational performance

4. Strategic outlook

5. FY22 guidance

Highlights

5.
Performance Highlights

Financial

$210m

EBITDAF

1

OperationalSocial

Ngā Ara Creating

Pathways

N PAT$85 million

8.7 cps

Interim Dividend

Gross yield of 8.3% and return of DRP

2

$350m

Release of Sustainable

Finance Framework

Committed to sustainable outcomes

+26

Strong Customer Loyalty

Brand NPS

13.2%

Net Churn

500MW

Partnership with FRV Australia

Grid-scale solar

242 GWh

Waipipi

Renewable Generation

Plan to develop up to

Facilitating transformational education,

training and employment opportunities to

prepare rangatahi for the future of work.

Power Shout

Gifting

Genesis customers can now give away

their free power to those in need. Over

15,000 customers chose to do so.

Manaaki Kenehi

Engaged with over 9,000 customers in

need.

1

Earnings before net finance expenses, income tax, depreciation, depletion, amortisation, impairment, Fair Value changes and other gains and losses.

Refer to consolidated comprehensive income statement in the 2022 interim report for a reconciliation from EBITDAF to Net Profit after tax.

2

Dividend Reinvestment Plan

Financial
Performance

7.
HY22 Financial Summary

KEY FINANCIAL COMPARISONS

1

1

Due to the Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing Software-as-a-Service, HY21 and FY21 comparable financials have been restated in this presentation. As a result, prior comparable

period (pcp) metrics may also have changed.

2

Underlying earnings is net profit after tax (NPAT) adjusted to exclude transactions which do not relate to the current operatingperformance of the business, refer to note A1 of condensed consolidated interim financial statements for reconciliation to NPAT.

3

Inventory prior comparison period is against the period ending 30 June 2021.

4

Controllable operating expenses refer to Employee Benefits plus Other Operating Expenses.

5

Free Cash Flow represents EBITDAF less cash tax paid, net interest costs and stay in business capital expenditure. Net interest costs is interest and other finance charges paid, less interest received.

6

Capital Expenditure amounts differ from amounts stated in the financial statements due to exclusion of capital expenditure relating to Huntly Unit 5’s Long Term Maintenance Agreement (LTMA).

7

Net Debt and interim dividends are shown on a separate scale to other financial comparisons. Net Debt prior comparison periodis against the period ending 30 June 2021. Interim Dividend stated in cps.

- 2.6%+ 62.9%+ 1.0%+ 8.0%- 15.4%- 3.4%+ 1.2%+ 4.5%- 49.5%+ 97.4%

$ millions

8.
Dividend reinvestment plan reactivated to support growth

• Interim Dividend of 8.7 cps, 80% imputed with a record date

of 18 March 2022 will be paid on 1 April 2022. A

supplementary dividend of 1.2283 cps will be paid to non-

resident shareholders.

• Sector leading dividend yield representing a gross yield of

8.3% as at 25 February 2022.

• Dividend Pay-out ratio of 60% reflects a solid first half

performance.

• Dividend Reinvestment Plan (DRP) has been reactivated to

support Genesis investment growth strategy.

• Shareholders will be offered the opportunity to reinvest

theirdividend at a 2.5% discount.

DIVIDEND PER SHARE & PAY-OUT HISTORY

1

Free cash flow repres ents EBITDAF less cash tax paid, net interest costs and stay in business capital expenditure.

9.
Building value through Retail momentum

EBITDAF

1

EBITDAF

1

$ MILLIONS

• Genesis delivered a consistent EBITDAF performance for the first half, once the impact of arbitration emissions in HY21 are applied

to the period the units were incurred.

• Continued growth in netback across all fuels delivered $17m of value relative to pcp.

• Consistent Wholesale performance in changing market conditions reflects the flexibility of generation available to Genesis.

• The energy shortage events in August 2021, where Genesis experienced multiple unplanned plant constraints, resulted in a one off

cost of $6m.

$ MILLIONS

1

Due to the Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing Software-as-a-Service, HY21

and FY21 comparable financials have been restated in this presentation. As a result, prior comparable period (pcp) metrics may also have changed.

206

10.
Resilient performance of our integrated portfolio

RetailWholesaleKupe

EBITDAF

$34m

$53m vs pcp

$160m

$59m vs pcp

$40m

$9mvs pcp

Transfer

Prices

Changes

$(66m) impact

vs pcp

•Higher gas, electricity and LPG transfer

prices.

•The sustained growth in wholesale markets

flowed through to the Retail segment.

$75m impact vs pcp

•Combined benefits from internal transfer

prices from Kupe and to the Retail

segment.

$(9m)impact vs pcp

•Lower internal transfer price for the sale

of gas and LPG between Genesis’ 46%

share in Kupe and the Wholesale

segment.

Other

Drivers

•Continued netback momentum across

business and retail customers drove

additional value.

•Net customer churn continued a downward

trajectory and is 13.2% for FY22 YTD.

•Continued efficient operation with CTS level

at $124 per ICP

1

.

•Portfolio flexibility drove value, offset by

higher fuel and emissions costs.

•August wholesale energy event incurred a

one off $6m loss.

•Successful completion of the inlet

compression project during the period

restored field capability up to 77TJ/day.

•Strengthening global energy markets

provided momentum for oil sales.

1

Retail costs associated with serving customers across all fuels divided by the total number of Installation Control Points (ICP). Costs are 12 month historical.

11.
Valuation gains drive higher NPAT

• Lower wholesale electricity forward

prices favourably impacted fair value

movements through electricity swaps,

partially offset by PPAs

2

.

• $13m in realised cash gains relating to

coal derivatives.

• Uplift in tax expenses due to

increased profitability.

• Higher depreciation due to upwards

revaluation of generation assets in

June 2021.

NPAT

1

$ MILLIONS

$

MILLIONS

UNDERLYING EARNINGS

1

1

Due to the Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing Software-as-a-Service, HY21

and FY21 comparable financials have been restated in this presentation. As a result, prior comparable period (pcp) metrics may also have changed.

2

Power Purchase Agreements

12.
Investing for growth and a low carbon future

• Genesis continued to plan for a low carbon future, through

investment in Future-gen and positioning Huntly for the long

term. This strategy includes progressing the biofuels trial,

expected to be completed by the end of FY22.

• Commenced the implementation of our retail digital

transformation programme.

• Higher ongoing business costs included increased

insurance and software costs, salary inflation and higher

overheads. Genesis has also invested nearly $1m in

keeping our employees safe and productive through the

pandemic.

• Reclassified some capital expenditure related to

implementing SaaS as operating expenditure following an

accounting policy change which increased operating

expenditure by $3m. This includes $2m of investment in our

Digital Transformation programme.

$ MILLIONS

OPERATING EXPENDITURE

13.
Capital invested for efficiency and long term resilience

Stay in business capital

2

of $25.5m includes:

Long term investment to improve the reliability and efficiency of

generation assets. This included:

• $1.5m invested in the ongoing Tekapo B runner upgrade

project. The overhaul of both turbine runners will result in 2.5%

improved efficiency for the 800 GWh station.

• $4.2m invested in the Huntly Rankine units to ensure long-

term continued reliability of New Zealand’s thermal back-up.

• Commenced the overhaul of the Piripaua power station

turbines. Investment is expected to increase efficiency by 3.3%

for the 42MW station.

Growth capital includes:

• Successful completion of the inlet compression at Kupe,

ensuring continued gas resilience and a return to full

production capability of 77TJ/day.

• Investing to grow customer loyalty and reduce churn through

our successful Power Shout programme.

• $1.7m invested in supporting new LPG customers and other

growth initiatives.

CAPITAL EXPENDITURE

1

CAPITAL EXPENDITURE

1

1

Capital expenditure excludes M&A activities.

2

Stay in Business capital expenditure includes an additional $1.9m which reflects payments made during the

period regarding LTMA contract.

3

HY21 and FY21 Capital have been restated for the impact of IFRIC agenda decision on Software as a Servic e

configuration and customisation costs (HY21: $1.3m, FY21: $4.2m).

4

Capital expenditure amounts differ from amounts stated in the financial statements due to exclusion of capital

expenditure relating to Huntly U5’s Long Term Maintenance contract (LTMA) HY22: $3.4m

$ MILLIONS

$ MILLIONS

14.
A well managed capital structure

• S&P reaffirmed BBB+ credit rating in February 2022.

• Net debt has increased due to increased inventory and FY21

arbitration costs paid in HY22. Debt/EBITDAF is lower due to

higher expected earnings in FY22.

• $545 million of undrawn facilities provides ample

headroom,including cover for $195 million of short-term

commercial paper on issue at 31 December 2021.

• A 7-year $100 million wholesale bond was issued in

December 2021 at a rate of 3.65%, demonstrating ongoing

debt investor appetite.

•Average interest rate of 4.2% in HY22, down from 4.4% for

FY21, due to lower fixed rate debt. Total finance expense is

flat due to increased debt offset by the lower interest rates.

1

S&P Global Ratings make a number of adjustments to Net Debt and EBITDAF for the purpose of

calculating credit metrics. The most significant of these is the 50% equity treatment attributed to the Capital

Bonds. In FY21 S&P added back the EBITDAF related to prior year arbitration impact.

2

HY22 Net Debt/EBITDAF is based on Net Debt at 31 December 2021 and the mid-point of FY22 EBITDAF

guidance of $435 million.

NET DEBT/EBITDAF RATIO FALLING TO TARGET BAND

FIXED INTEREST RATE PROFILE

15.
35% of facilities linked to sustainable assets and outcomes

First NZ company to have a Framework, loan and bond aligned to the Climate Transition Finance Handbook

• Genesis partnered with Westpac to develop its Sustainable Finance Framework. This was released in November 2021.

• Genesis has enteredinto three Sustainability-Linked Loans, where Genesis commits to meeting sustainability targets in order to

receive a discount on interest costs. This includes Genesis’ 1.5°C degree Science-Based emissions reduction target; and an

emissions reductions goal that we believe is the largest of any Sustainability-Linked Loan in New Zealand.

• As at 28 February 2022 Genesis has $575m of bonds and bank debt facilities under its Sustainable Finance Framework and

expects to extend this in the second half of FY22.

DECEMBER2020NOVEMBER/

DECEMBER2021

JANUARY 2022MARCH2022

Genesiscommitsto anambitious

1.5°C Science Basedcarbon

reductiontarget(SBTi)

SustainableFinance

FrameworkReleased

$250mSustainability

LinkedLoans

Green designation of $100m

Senior Bonds

$225m of Capital

Bondsdesignatedas

GreenCapitalBonds

Considering a Green

Bond issuance of

$100m to $125m

Operational
performance

17.
Growing customer engagement and loyalty

•Energy IQ continues to inform and engage customers, with 8.8m

interactions in HY22, equal to 71% of all interactions in FY21. 141,000

visits to the tipscentre, 40% up on FY21 total.

•Energy IQ and Power Shoutcontinue todrive customer loyalty.

Customer NPS rose to the highestlevel of +26.Net customer churn

declined to 13.2%.

•15,000 Genesis customers gifted over 60,000 hours of free power to

those struggling financially. Matchedby Genesis, more than130,000

hours will be given away this winter.

•Leveraging residential capability to launch a new online sales channel

and transparent energy plans that better target small business

customers.Already delivering 6% - 7% monthly business sales.

BRAND NPS

WHEN CUSTOMERS CHOOSE POWER SHOUTENERGY IQ NPS

“It makes us feel like a really valued customer. In a

world where nothing is free it’s great that Genesis is

trying to give back to the customers through the

Power Shout Loyalty programme.

18.
Continued growth in LPG

•The total New Zealand LPG market has grown4% on the pcp. Genesis’

total market share is now29%, up 2% on the pcp.

•Netbacks continued to grow with residential up 5.5% and business up 4.5%

on pcp.

•Genesis continues tofocus on regions with growing consumption and

utilise our distribution network to optimise delivery efficiency.

•Residential customersnumbers were up 9% on pcp, with Genesis now

having 43% share of45kg category. Warmer winter conditions and COVID

meant that per customer 45kg consumption declined by -5% YTD.

•Additional import volumes to New Zealand has meant wholesale prices

continued to converge with global energy prices.

SECTOR LPG GROWTH

IMPORT SHARE OF RETAILLPG SUPPLY AND DEMAND

LPG (T)

19.
More and more customers are engaging with Energy IQ

ENERGY IQ 1.0 HAS BEEN DELIVERING

EXCELLENT EXPERIENCES AND RECORD

ENGAGEMENT

•With a great range of energy management features and loyalty

offers to customers, paired with a robust experience design,

Energy IQ is achieving record engagement scores.

•Increased uptake of Energy Insights and Power Shout continue to

drive high usage of Energy IQ, with unique users up 31% on pcp.

ENERGY IQ 2.0 IS CENTRED AROUND THE

CUSTOMER’S HOME

•Genesis will be launching an entirely new version of Energy IQ in

FY22.

•This has been designed alongside customers and is an entirely

new way to interact with energy. Shifting the focus from the bill to a

customer's energy usage and insights from around their home.

•The home will contextually reflect the customer's energy situation

and highlight the most relevant information.

Solar

LPG

EV

ENERGYIQUNIQUEMONTHLYUSERS

H1FY21113,000

H2FY21140,000

H1FY22148,000

6 Month Rolling Average

20.
Energy Management is changing the way our customers engage

NEWEVENERGYMANAGEMENTFEATURES

•Energy EV customers can now monitor theirhousehold

day/night usage through the new feature in Energy IQ,

EV IQ.

•Over40%of ourEVcustomers have engaged with the

feature. Across allEVcustomerstherehasbeenan

average7%shift of total household usage from day to night

since joiningthe EV plan.

PILOTINGNEWEVTECHNOLOGY

•Wearecurrentlypilotingnewtechnologythatconnects a

customer’shomesmartchargers directly to EnergyIQ.

•EV Sync manages a customer’s EV charging profilewith the

low rate and low carbon generation periods,while ensuring

that their EV is charged by a preferred time.

•This intelligent new feature provides customers with

charge scheduling options, automated optimisation and

separateenergytrackingfor theirE V.

RESIDENTIALCUSTOMERSWITHENERGY MANAGEMENT

PRODUCTS& EIQFEATURES

LARGEBUSINESSCUSTOMERSWITHENERGY

MANAGEMENTSERVICES

14%

CurrentH1

average

18%

Targetforend

ofFY22

21.
•Previously, Energy Online.90,000 Customers.Full relaunch from Feb 2022.

•No contracts, nogimmicks. Same great prices offered for both new and

existing customers.

•Simplifycustomer propositions and business model to keep prices low and

deliver targeted profitability outcomes. Digital sign up, service

andautomation to drive lower cost to acquire andserve.

•Autonomous Frank digital and marketing capability established.Leveraging

core Genesis investments in Digital Transformation programme.

DIGITALSALESMIX

FY21H129.6%

FY21H230.5%

FY22H146.1%

Total ICP MovementChurn v rest of the Tier 2 market

Electricity ICP churn (annualised)per Electricity Authority

-
50

100

150

200

250

20182019202020212022

ResidentialCommercial

Ecotricity Sales

•Ecotricity are New Zealand’s leaders in providing 100%

carboNZero certified renewable electricity.

•The company has delivered strong growth with supply

contracts to New Zealand’s two largest EV charging networks.

Ecotricity will supply three data centres starting in 2022. This

pipeline supports growth of ~50% in FY22.

•Genesis increased its ownership share in Ecotricity to 70%, on

28 February 2022.

•Successful migration completed in 2021 to technologically

advanced billing platform which allows for rapid deployment of

new zero carbon products.

•Ecotricity is involved in a number of large scale renewable

generation projects to support commercial and industrial

clients move to carboNZero certified electricity.

Annual Volumes GWh

Note that Ecotricity customer numbers and sales volumes are not included in Genesisretail operational statistics.

Goal of 50%

growth in 2022

23.
Optimisingourgenerationportfoliotomeetmarketconditions

•Genesis’ flexible generation portfolio continued to provide back-up

energy to the market during periods of high prices and pulling back and

running short into lower priced periods.

•Wholesale gas trading activity enabled flexibility and the ability to focus

generation into higher-price periods. Additional gas has been secured

for winter periods in 2022 and 2023.

•By focusing generation on higher-priced periods and purchasing

additional volume through the spot market, the portfolio LWAP/GWAP

declined to 92%.

•Genesis was able to run 270 GWh short into the market through the

half at an average cost of $78/MWh, a significant discount to average

thermal running cost of $99/MWh.

HUNTLY FLEXIBILITY

GAS SUPPLY FLEXIBILTYWHOLESALE MARKET PRICES

24.
A securesupplyoffuelsandcarboncredits

•Genesis continued to provide energy security to New Zealand

through HY22 and is well prepared to provide essential back-up

through 2022. At the conclusion of the half, Genesis had 2.1 TWh

of stored energy across hydro and thermal.

•Despite rising carbon costs, Genesis remains hedged through to

FY28 with a supply of units well below current market prices.

•Beyond our current hedge position, our investment

in Drylandcarbon will provide Genesis a long-term unit supply over

the next three decades. This is currently forecast to provide

approximately 150,000 units per annum and Genesis is considering

extending this position.

SECTOR ENERGY STORAGE

CARBON HEDGE POSITION

CARBON HEDGE PRICES

Carbon hedge position as at 31 December 2021, inclusive of units from investment in Drylandcarbon.

Thermal and Hydro storage as at 31 December 2021.

Position as at 31 January 2022.

Mercury

25.
GrowingValueandsupportingNewZealandEnergySecurity

•Kupe continues to prove its value to the New Zealand energy system. In

a period of rising wholesale oil, gas and LPG prices, Kupe provided

Genesis with reliable supply.

•After successful inlet compression investment, Kupe returned to full

production capability of 77TJ/day.

•Work is continuing to progress on well development, in the lead up to

final investment decision. Engineering design work and rig procurement

is currently underway with a decision expected this calendar year.

•The annual full plant critical function test was successfully completed in

November 2021. Planning is underway for the next major plant shutdown

in November 2022.

LONG TERM GAS PRODUCTION VOLUME FORECASTCRUDE OIL PRICE

HY22 KUPE PRODUCTION

Successful Inlet

Compression

Long term gas forecast from FY20 2P reserves. W ell development is subject to relevant approvals and Kupe JV

investment decisions. Reserves associated with the Development W ell are classified as Undeveloped Reserves

26.
Keepingourpeoplesafeandensuringcontinuedproductivity

•Genesis is proud to be keeping our people safe and productive through

the pandemic. Genesis has distributed and trained over 1,300 staff and

contractors in their use of RA test kits so that our people can self-test

prior to coming to work.

•At phase two Omicron, Genesis requires twice weekly RA testing to

attend offices and daily testing at key operational sites.

•Genesis has undertaken in excess of 14,500 PCR tests and 15,500 RA

tests.$1m investedin testing in addition to development and

implementation of our response plan.

•Genesis employees continue to remain engaged, motivated and

supportive of our purpose to empower New Zealand’s sustainable future.

Employee Net Promoter score remains a strong +65.

TESTS CONDUCTED

EMPLOYEE NET PROMOTER SCOREINJURIES TREND

Strategic outlook

28.
AnactiveenablerofNew Zealand’senergytransition

Future-gen– transitioningourwholesalepositiontoleadNZ’senergytransition

Growrenewables

Valuefromflexibility

andreliability

TransitionHuntly

Contract for

newrenewable

generation

Contract for

fuel flexibility

Trial biofuels

asa fueloption

forHuntly

Partnerto builda

pipeline of solar

options

Drylandcarbon

partnership

Planforemerging

technologies

(Batteries)

Sell contracts that

support market

reliability (swaptions)

29.
Varied scenarios trend towards 96% to 98% renewable by 2030

1. MixofPower Purchase Agreements (PPA)andsolardevelopment

Outputs

Balanced

Demand growth from EV

and industrials are evenly

metbycommerciallyviable

renewablesalongwithsteady

thermaldisplacement.

RegulatedRenewables

An incentivisedrenewable

uptake with a goal of 100%

renewableleadingto increased

periods of over and under

supply.

Pressurecooker

Faster than anticipated

demand growth with

development constraints,

leads to slower renewable

growth and displacing less

thermal.

Oversupply

Tiwaiclosurecauses

oversupply of low cost energy

and incentivises large scale

demandresponse.

NZrenewablesmix,%

88%95%97%88%95%98%87%92%96%88%96%98%

Totalmarket

generation,TWh

Geothermal

Hydro

SolarThermal

Wind

Renewables added to

GenesisPortfolio

1

, TWh

Huntlyemissions,ktCO

2

202220252030

202220252030

202220252030

202220252030

30.
A highly renewable market will require peaking capacity and

seasonal storage -market settings may need to adapt

•More than 750MW of peaking capacity is required in less than 1% of

hours in typical hydrology (50th percentile) to maintain security of

supply.

•1650GWh of energy storage is drawn on 40% of the time in dry years

(5th percentile) compared with 700GWh in normal years (50th

percentile).

A highly renewable

1

grid draws on backup generation to cover

infrequent peak capacity needs and dry-year firming

Near 100% renewable, spill makes further renewable build a

costly way to displace remaining thermal

0

1000

2000

3000

4000

5000

92%94%96%98%100%

Volumes (GWh)

Modelled system renewable generation contribution

Renewables addedThermalSpill

•New renewables start to contribute more to spill than future

displacement of thermal generation.

•The system can reach 98% renewable where approximately

700GWh of backup generation is used on average.

0

200

400

600

800

1000

1200

1400

1600

1800

051015202530354045

Dispatched generation MW

% of the year

5th Percentile Dry Hydro50th Percentile Hydro95th Percentile Wet Hydro

Dry year Energy Requirement

Winter Capacity

requirement on low

renewable days

1. Simulated 2030 market conditions under ‘Balanced’ scenario.

31.
Biofuel at Huntly could provide a seasonal storage solution

but not short notice peaking capacity

WORKCOMPLETEDTOD AT EPAIN T SA POSITIVEPICTUREFOR

BIOMASSATHUNTLY

Biofuelsresourceassessment

•Emerging domestic industry with significant sustainable resource

potential,but innascent stageof development.

•International markets scaling up with advanced biofuels emerging

whichare a near drop-in replacementfor coal.

RankineUnitlifecycleassessment(Dec2021)

•Opportunityto extendoperationallifeto at least2040and

potentiallybeyondat a relatively low cost vs alternatives.

•IncrementalCAPEXdependentonrunningintensitiesand

desiredlifetime.

Technicalviabilityassessment

•Progressing with advanced biofuel which is practically a drop-in

replacementforcoal (<$200kunitmods fortrial).

•Improved weather resistance and reduced dust from advanced

biofuels,negate theneed forcovered storage.

Physicaltrial

•Testplancomplete

•Trial supplyof advancedbiofuelsourced– arrivalMarch2022

•TrialburnscheduledforApril/May2022

ADVANCED BIOFUELS NEAR DROP-IN REPLACEMENT FOR COAL

Our analysis indicates that biofuels are a viable solution to New Zealand’s 100%

renewables commitment and expected to be lowercost thanother renewableoptions

ADVANCED BIOFUELS EXPECTED TO BE COMPETITIVE WITH COAL

ATCURRENTCARBON PRICES(PRIOR TOFREIGHT)

$-

$100

$200

$300

$60 $90 $120 $150

Generation Cost $/MWh

Carbon $/tCO

2

Biofuel Indicative

Range

Coal Range

Gas Range (U5

without storage)

32.
Regulatoryenvironment creates an opportunity for business,

Government and regulators to collectively shapea low carbon

energy system

Potential

Opportunities

Regulatory

Reviews

EA:reviewofwholesalemarketcompetition

• Found offer prices generally reflected underlying

conditions.

• Focus on the Tiwaicontracts between Meridian, Contact

andNZAluminumSmelters.

EA:DryYearReview

• Found the system worked largely as intended, but

highlightedroom for improvement in policies and

communication toprovidegreatercertainty during

fuel scarcity.

MBIE: NZ Battery Project assessment

1

•Work programme identifying renewable optionsto

provide dry year back-up to New Zealand.

•Genesis is engaging with the Government, including

regarding the future of Huntly and opportunities in

conversion of Rankines to run on biomass

EA:ReviewsfollowingAugust2021outage

• Highlighted the importance of security of supply and

resilienceof ourenergy system.

• EAstatedthatactionstakenbyGenesiswerereasonably

open to Genesis and did not threaten confidence in, or

theintegrity of themarket.

GIC:Gasmarketsettingsinvestigation

•Highlighted need for further upstream investment to

ensuresecuresupplylater inthedecade.

MfE Emissions Reductions Plan

•Delivered in 2022 determining the policy plans to meet

carbon budgets.

•An energy strategy is to be developed (MBIE) setting

out how the sector will navigate the transition.

1. The NZ Battery Project is the New Zealand Government’s investigation into possible solutions to New Zealand’s dry year back-u p challenge.

33.
Future-gen programme on track to deliver lower

cost renewables

• Future-gen has already displacedan estimated 330,000

tonnes of carbon emissions through the Waipipi windfarm.

• Waipipi is now generating 455 GWh per annum.

• Kaiwaikawe is expected to be completed by 1 March

2024 and will provide 230 GWh per annum.

• Tauhara is expected to be completed by 1 January 2025

and will provide 520 GWh per annum, from the start

date.

• Genesis has signed a JV agreement with FRV Australia to

develop up to 500MW of grid scale solar. The JV has been

investigating potential sites and working arrangements.

• This brings together an internationally renowned global solar

developer and Genesis’ experience operating in New

Zealand.

• Genesis will own 60% of the partnership as well as

purchasing energy generated by the projects.The

partnership intends to develop multiple sites.

GENESIS GENERATION DIVERSITY

FUTURE-GEN PORTFOLIO PIPELINE TARGET

OwnershipJoint VenturePPA

HydroNI/SI

WindNINI

Solar

GeoNI

ThermalNI

Current

Future-gen

34.
Genesis is considering what further long-term carbon

reduction commitments we can make

• Genesis has committed to a 1.5 degree

Science-Based Target

1

by 2025, which will

reduce emissions by at least 1.2 million

tonnes by FY25

2

.

• Our Future-gen strategy aims to reduce

emissions through to 2030, consistent with a

net-zero pathway.

• Genesis is considering making a further

longer term carbon commitment. This could

include a goal of net-zero emissions by

2040.

• We will only make a commitment if we have

strategies in place to achieve this goal.

• Any commitment would be externally verified

and adhere to global standards, such as the

SBTi.

SCOPE 1 EMISSIONS - GENERATION INTENSITY (MEAN YEAR)

SCOPE 3 EMISSIONS (MtCO

2

)

1

Validated by the SBTi, a global partnership that provides a clearly defined path to

reduce emissions in line with the Paris Agreement goals.

2

To reduce absolute scope 1 and 2 GHG emissions 36% by FY25 from a FY20

base year and to reduce absolute scope 3 emissions from use of sold products

21% by FY25 from a FY20 base year.

35.
Customers’firstchoiceforenergymanagement

Createconsistent,distinctiveend-to-endcustomerexperiences

Digital transformation: Invest in technology and data to create

consistent and distinctive end to end customer experiences

Create residential

experiencesthatbuild

customerloyalty

Grow our market

share of small

businesscustomers

BecomeanLPG

marketleader

UnleashFrank*in

thetier2 market

Design products for

emerging energy

managementneeds

36.
Transforminghow weprovideourcustomersenergy

MAHITAHIRUBIKSBOWIE

What?

A newcloud Genesis

Data Platform (GDP)

consolidating and

governing data while

reducing integration

points.

New Information

System (CIS) and

Customer Relationship

Management(CRM).

Design of a Target

Operating Model for

Genesis retail to bridge

strategyandexecution.

Why?

Trusted and readily

available data assets,

leadingtoreduced costs

and increased abilityto

generatevalue from

insights.

Enhanced customer

experiences through

modern sales, service

andbillingtechnologies,

as current systems

reachendof life.

FutureRetailoperating

model to fully leverage

new technology and

datacapabilities.

BenefitsChurn-4%CTA -3%CTS-5%

Status

New platform live

withDataMartbuilds

underway;tworetail

usecaseslivebyFY23.

Discovery progressing

with preferred vendor,

withfinaldecisionin Q3

FY22.

Futureoperatingmodel

in detailed design and

planning phase with

trials planned later in

2022.

Head office Staff perspective

The core differentiator of our plans is the

price. Making changes to the price takes

many months and consumes a lot of effort

I’d rather spend creating differentiated

propositions.

Current situation

The core system has limited product

configuration capabilities, e.g. cannot

support time of day billing.

Customer perspective

All energy companies are the same, it’s a

basic rate and doesn’t feel the energy

companies have even tried to make a plan

that suits me.

Post implementation

The core system comes with a rich set of

pre-configured product structures e.g.

multiple discount types, rule based pricing,

time of day billing .

USE CASE EXAMPLE:

NEW ENERGY PLANS

Front & Back office Staff perspective

It feels like I spend all my time talking

about customers bills and the price, as the

price is the only thing that varies across our

plans.

Head office Staff perspective

Price changes are simple, I have

confidence the automated processes will

implement accurately. The differentiation in

our plans shifts focus from just the price.

Customer perspective

I am able to choose a plan that feels like it

fits my needs, it rewards me for the actions

I can take to shift my load and set up

automatic payments.

Front & Back office Staff perspective

I can engage the customer in a more

meaningful conversation about their energy

needs, and help find a plan that meets their

needs and isn’t just about $/kwh.

Pricing

configuration

Product

configuration

Quoting time

Key capability uplifts

37.
A refreshedLeadershipTeamtonavigatethetransition

MarcEngland

CEO

Responsible for the leadership,

strategic direction and

management of all its business

interests.

JamesSpence

CFO

(Incoming)

Responsibleforoverseeing

allfinancefunctions,treasury,

tax,risk,corporatefinanceand

investorrelations. Starting 1

March 2022.

Nigel Clark

COO

(Outgoing)

Responsible for our generation

assets, Kupe and leading

safetyandwellness.Role

ending April 2022.

NicolaRichardson

CPO

Responsible for the people,

culture, property and

procurement.

TraceyHickman

CCO

Accountable for the Genesis

Retail brand, LPG operations

and a range of retail support

functions for the whole

business.

Rebecca Larking

COO

(Incoming)

Responsible for our generation

assets, Kupe and leading

safetyandwellness. Role

commencing April 2022.

Pauline Martin

CTO

(Incoming)

Responsible for Genesis’

electricity,gas,coal and carbon

portfoliomanagement,

derivativesandspottrading.

Role commencing March 2022.

PeterKennedy

CDO

Accountablefortechnologyand

data transformation across the

business.

MatthewOsborne

CCAO

Responsible for legal,

regulatory, external

communications

government relations,

sustainability.

FY22 guidance

39.
FY22 EBITDAF is $430 to $440 million

•The FY22 EBITDAF guidance range has been updated to $430 to $440 million subject to hydrological conditions,

gas availability, any material events, one-off expense or other unforeseeable circumstances. FY22 capital

expenditure guidance is up to $84 million.

•As a result of implementing theIFRS Interpretations Committee ('IFRIC') agenda decision regarding accounting for

SaaS configuration and customisation costs, a total of$11 million has been reclassified fromcapex to opex. This

change has been reflected in guidance.

•Genesis is well positioned for 2022, heading into the peak demand period. Lake levels and contracted gas supplies

are higher than a year ago. There is also sufficient coal to back-up the system, if the country needs it.

Appendices

41.
Financial statements

1

Capital items received as part of the LTMA are recognis ed upfront and paid off over the life of the

agreement (8 years), the cash outflow ($1.9m) relating to this has been recorded as Stay in Business

capex for the purposes of the Free Cash Flow Calculation.

Income Statement

HY22

($m)

HY21

($m)

Variance

Revenue1,382.41,419.4

(2.6)%

Expenses(1,172.1)(1,203.4)

(2.6)%

EBITDAF210.3216.0

(2.6)%

Depreciation, Depletion & Amortisation(106.0)(102.1)

Impairment of Non-Current Assets(2.5)-

Fair Value Change37.0(10.1)

Revaluation of generation assets-0.5

Other Gains (Losses)13.3(1.0)

Share in associates and joint ventures(3.4)(0.4)

Earnings Before Interest & Tax148.7102.944.5%

Interest(30.4)(30.0)

Tax(33.6)(20.9)

Net Profit After Tax84.752.062.9%

Earnings Per Share (cps)8.125.0261.8%

Stay in Business Capital Expenditure25.528.3(9.9)%

Free Cash Flow

1

152.4157.7(3.4)%

Dividends Per Share (cps)8.78.61.2%

Dividends Declared as a % of FCF60%57%

Balance Sheet

HY22

($m)

FY21

($m)

Variance

Cash and Cash Equivalents71.6104.3

Other Current Assets574.7825.1

Non-Current Assets4,151.64,305.3

Total Assets4,797.95,234.7(8.3)%

Total Borrowings1,445.91,427.8

Other Liabilities1,270.51,760.4

Total Equity2,081.52,046.51.7%

Adjusted Net Debt1,3331,276

Gearing34.3%34.2%

EBITDAF Interest Cover8.6x8.3x

Net Debt/EBITDAF2.7x2.9x

Cash Flow Summary

HY22

($m)

FY21

($m)

Variance

Net Operating Cash Flow123.5244.6

Net Investing Cash Flow(57.3)(50.2)

Net Financing Cash Flow(98.9)(145.6)

Net Increase (Decrease) in Cash​(32.7)​48.8​(81.5)​

42.
Debt information

Debt InformationHY22

($m)

FY21

($m)

Variance

Total Debt

$

1,4461,428

Cash and Cash Equivalents

$

72104

Headline Net Debt

$

1,3741,324+3.8%

USPPFX and FV Adjustments

$

4148

AdjustedNet Debt

1

$

1,3331,276+4.5%

Headline Gearing41.0%41.1%-0.1 ppts

AdjustedGearing40.3%40.3%

Covenant Gearing34.3%34.2%+0.1 ppts

Net Debt/EBITDAF

2

2.7x2.9x-0.2x

Interest Cover8.4x8.3x+0.1x

Average InterestRate4.2%4.4%-0.2 ppts

Average Debt Tenure8.7 yrs10.3 yrs-1.6 yrs

1

Net debt has been adjusted for foreign currency translation and fair value movements related to USD

denominated borrowings which have been fully hedged with cross currency swaps and fair value interest

rate risk adjustments for fixed rate Capital Bonds.

2

Standard and Poor’s make a number of adjustments to Net Debt and EBITDAF for the purpos e of

calculating credit metrics. The most significant of these is the 50% equity treatment attributed to the

Capital Bonds.

GENESIS DEBT PROFILE AT 31 DECEMBER 2021

$545million of bank facilities (including $250 million of sustainability linked

loans) were undrawn and $195million of Commercial Paper was on issue

at 31 December 2021. The Commercial Paper matures within 90 days.

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY22

Q3

FY22FY23FY24FY25FY26FY27FY28FY29FY47FY49

$m

Commercial PaperWholesale DomesticDrawn Bank

Undrawn BankUndrawn SLLCapital Bonds

Green BondsUSPP

Q4

43.
Operational metrics

1

HY22 Retail and W holesale operational numbers have been corrected since the Q2 Performance Report.

2

Historical segment LPG netbacks have been restated in line with sales channels, “Bottled” and “SME &

Bulk”, to better align with business activities. There is no change to headline netback numbers.

Retail Key Information

1

HY22HY21Variance

EBITDAF ($ millions)34.187.1(60.8)%

Customers with > 1 Fuel129,920124,9963.9%

Electricity Only Customers290,288303,518(4.2)%

Gas Only Customers15,10115,649(3.5)%

LPG Only Customers34,25433,5842.0%

Total Customers469,563477,747(1.7)%

Total Electricity, Gas and LPG ICP’s668,206669,496(0.2)%

Volume Weighted Average Electricity

Selling Price – Resi ($/MWh)

$267.99$264.461.3%

Volume Weighted Average Electricity

Selling Price – SME ($/MWh)

$231.93$215.667.5%

Volume Weighted Average Electricity

Selling Price – C&I ($/MWh)

$139.95$138.950.7%

Volume Weighted Average Gas Selling

Price ($/GJ)

$22.70 $19.65 15.5%

Volume Weighted Average LPG Selling

Price ($/tonne)

$1,908.90 $1,906.87 0.1%

Retail Key InformationHY22HY21Variance

Retail Electricity Sales (GWh)3,1213,286 (5.0)%

Retail Gas Sales (PJ)4.24.5(6.7)%

Retail LPG Sales (tonnes)23,965 23,142 3.6%

Electricity Netback ($/MWh)$124.50$121.952.1%

Gas Netback ($/GJ)$12.86$10.5222.2%

LPG Netback ($/t)$1,081.12$1,044.993.5%

Retail Netback

2

by Segment & FuelHY22HY21HY20

Residential - Electricity ($/MWh)$140.79$143.07 $122.83

Residential - Gas ($/GJ)$15.76 $14.17 $12.30

Bottled - LPG ($/tonne)$1,365.58$1,294.73 $1,261.36

SME - Electricity ($/MWh)$121.23 $105.03 $100.49

SME - Gas ($/GJ)$11.91$10.33 $9.33

C&I - Electricity ($/MWh)$101.53$100.53 $89.14

C&I - Gas ($/GJ)$10.70 $7.41 $7.30

SME & Bulk - LPG ($/tonne)$862.07 $825.20 $793.29

44.
Operational metrics

Wholesale Key Information

1

HY22HY21Variance

EBITDAF ($ millions)160.2101.757.5%

Renewable Generation (GWh)1,4261,466(2.7)%

Thermal Generation (GWh)1,6802,307(27.2)%

Total Generation (GWh)3,1063,774(17.7)%

Power Purchase Agreements

Wind (GWh)24230706.7%

Average Price Received for PPA -GWAP ($/MWh)$101.15 $106.62 (5.1)%

GWAP ($/MWh)$130.00 $127.7 1.8%

Electricity Purchases - Retail (GWh)3,2893,464(5.1)%

LWAP ($/MWh)$119.24 $129.02 (7.6)%

LWAP/GWAP Ratio92%101%(9)ppts

Electricity Financial Contract Purchases (GWh)

1,1921,1048.0%

Electricity Financial Contract Purchase price ($/MWh)

$114.10 -

Electricity Financial Contract Sales (GWh)

1,4771,4611.1%

Electricity Financial Contract Sales Price ($/MWh)

$131.08 -

Coal/Gas Mix (Rankines only)83/1793/7

Gas Used in Internal Generation (PJ)10.510.7(1.9)%

Coal Used in Internal Generation (PJ)4.010.4(61.5)%

Weighted Average Gas Burn Cost ($/GJ)$11.21$8.9924.6%

Weighted Average Coal Burn Cost ($/GJ)$7.25$6.0819.2%

Weighted Average Thermal Fuel Cost ($/MWh)$99.27$79.9924.1%

Weighted Average Portfolio Fuel Cost ($/MWh)$53.71$48.919.8%

Kupe Key InformationHY22HY21Variance

EBITDAF ($ millions)40.349.4(18.4)%

Gas Production (PJ)5.45.7(5.3)%

Gas Sales (PJ)5.45.7(5.3)%

Oil Production (kbbl)152178(14.6)%

Oil Sales (kbbl)147157(6.4)%

LPG Production (kt)23.324.4(4.5)%

LPG Sales (kt)23.824.5(2.9)%

Remaining Kupe Reserves (2P, PJe)292.8323.4(30.6)PJe

Average Brent Crude Oil (USD/bbl)$75.52 $43.61 73.4%

Realised Oil Price (NZD/bbl)$97.37 $68.55 42.0%

1

HY22 Retail and W holesale operational numbers have been corrected since the Q2 Performanc e Report.

45.
Glossary

RETAIL

BrandNetPromoterScoreBasedonsurveyquestion “Howlikelywouldyou betorecommend Genes isEnergy/EnergyOnlineto yourfriendsorfamily?”

InteractionNetPromoterScore

Based on survey question “Based on your recent Interaction W ith GE/EOL, how likely would you be to recommend GE/EOL to your Friends/Family?”

CustomersElectricityand gas customersare defined bysingle customer view,regardless of number ofconnections (ICP’s)

SingleCustomerViewRepresentsuniquecustomerswhichmayhavemultipleICP’s

ICPInstallationConnectionPoint, aconnectionpoint thatis bothoccupiedand hasnotbeen disconnected(Active-Occupied)

LPGCustomerConnectionsDefinedasnumberof customers

GrossCustomerChurnDefinedascustomersinstigatinga traderswitchorhomemove

NetCustomerChurnDefinedasGrossChurnposthomemovesaves,retentionandacquisitionactivity

Resi,SME,C&IResidential,smallandmediumenterprisesandcommercial& industrialcustomers

B2BBusinesstoBusiness,includingbothSMEandC&I

Volume Weighted Average Electricity Selling Price-

$/MW h

Average sellingpriceforcustomersincluding lines/transmissionanddistributionandafter discounts

Volume Weighted Average Gas Selling Price

- $/GJ

Average sellingpriceforcustomersincludingtransmissionanddistributionandafter discounts

Volume Weighted Average LPG Selling Price

- $/tonne

Averagesellingpriceforcustomersincludingafterdiscounts

BottledLPGSales(tonnes)Represents45kgLPGbottlesales

SME& OtherBulkLPGsales(tonnes)RepresentsSMEandotherbulkand3rdpartydistributors

CosttoServe($perICP)Retailcosts associatedwith servingcustomers across allfuel typesdivided bythe total numbersof ICPsat timeof reporting

Netback($/MW h,$/GJ,$/tonne)

Customer EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units (excluding corporatealloc ation

costs andTechnology& Digital cost centre)

GENERATION

AveragePriceReceivedforGeneration- GW AP

($/MW h)

Excludessettlementsfromelectricityderivatives.

Coal(GW h)Coalgenerationis calculatedbyapplyingcoalburntomonthlyaverage heatrates

CoalUsedInInternalGeneration(PJ)Resultshavebeenrevisedtoreflect changesin coalkilotonnesto PJconvers ionrateandvolume methodology

Rankine’sFuelledbyCoal(%)Theproportionof coalusedin theRankineunits

EquipmentAvailabilityFactor(EAF)Thepercentageoftimea powerstationis availabletogenerateelectricity

ForcedOutageFactor(FOF)Thepercentageof timea powerstation is unavailable togenerateelectricity dueto unplannedfailure ordefect

46.
Glossary

POWERPURCHASEAGREEMENTS

W ind(GW h)Energypurchasedthroughlongtermagreementswithgenerator

AveragePriceReceivedforGeneration- GW AP

($/MW h)

Pricereceivedatproductionnode.(E.g.W aipipi atW VY1101node)

WHOLESALE

AverageRetailElectricityPurchasePrice- LW AP

($/MW h)

Excludessettlementsfromelectricityderivatives

ElectricityFinancialContractPurchases-

W holesale(GW h)

Settlement volumes of generation hedge purchases, including exchange traded and OTC contracts. Excludes PPAs, active trading, Financial

TransmissionsRights (FTRs) and Cap/Collar/Floor contracts.

ElectricityFinancialContractSales-

W holesale(GW h)

Settlement volumes of generation hedge sales, including exchange traded, OTC contracts and Swaptions. Excludes PPAs, active trading, Financial

TransmissionsRights (FTRs) and Cap/Collar/Floor contracts.

ElectricityFinancialContractPurchases-

W holesalePrice($/MW h)

AveragepricepaidforElectricityFinancialContractPurchases- W holesale.

ElectricityFinancialContractSales-

W holesalePrice($/GW h)

AveragepricereceivedforElectricityFinancialContractSales- W holesale.

Swaptions(GW h)Electricityswapoptionssalesvolume.A subsetof theElectricityFinancialContractSales.

W holesaleLPGSales(tonnes)Representswholes ale,exportsalesandtransferstoHuntlypowerstation

Weighted Average Gas Burn Cost ($/GJ)Totalcost ofgas burntdivided bygeneration fromgas firedgeneration, excludingemissions

Weighted Average CoalBurn Cost ($/GJ)Totalcostof coalburntdivided bygenerationfrom coalfired generation,excludingemissions

Weighted Average Fuel Cost - Portfolio ($/ MW h)

Totalcost of fuelburnt plus emissions onfuel burnt dividedby total generation (thermal,hydro and wind)

Weighted Average Fuel Cost - Thermal ($/ MW h)

Totalcost offuel burntplus emissions onfuel burntdivided by totalgeneration fromthermal plant

CoalStockpile- StoredEnergy(PJ)Thecoalstockpile closingbalanc e intonnesdivided byan estimatednominal energycontent ofHuntly’s coal (22GJ/t)

CORPORATE

Total RecordableInjuries12-monthrollingTotalRecordableInjuries including LostTimeInjuries, RestrictiveW orkInjuries andMedicalTreatmentInjuries.

HeadcountBasedonfulltimeequivalents,includingcontractors

KUPE

OilPricerealis ed(NZD/bbl)Oilpricereceivedincludinghedgeoutcomeforoilandforeignexchange

OilPricerealis ed(USD/bbl)Theunderlyingbenchmarkcrude oilpricethat is usedto setthepricefor crudeoilsales

OilHedgeLevels(%)%hedgedforremainderof FYas%of forecastsales

Investor relations enquiries
Tim McSweeney

GM Investor Relations & Market Risk

+64 27 200 5548

---

Results announcement



Results for announcement to the market

Name of issuer Genesis Energy Limited (GNE)

Reporting Period 6 months to 31 December 2021

Previous Reporting Period 6 months to 31 December 2020

Currency NZD

Amount (000s) Percentage change

Revenue from continuing

operations

$1,382,400 -2.61%

Total Revenue $1,382,400 -2.61%

Net profit/(loss) from

continuing operations

$84,700 62.88%

Total net profit/(loss) $84,700 62.88%

Interim/Final Dividend

Amount per Quoted Equity

Security

$0.08700000

Imputed amount per Quoted

Equity Security

$0.02706667

Record Date 18/03/2022

Dividend Payment Date 1/04/2022

Current period Prior comparable period

Net tangible assets per

Quoted Equity Security

$1.59 $1.45

A brief explanation of any of

the figures above necessary

to enable the figures to be

understood

Please refer to the HY2022 Interim Report attached to this

announcement for Genesis’ unaudited interim financial

statements.


Authority for this announcement

Name of person authorised

to make this announcement

Tim McSweeney

Contact person for this

announcement

Tim McSweeney

Contact phone number +64 27 200 5548

Contact email address Timothy.McSweeney@genesisenergy.co.nz

Date of release through MAP 28/02/2022


Unaudited financial statements accompany this announcement.

---

Distribution Notice

Please note: all cash amounts in this form should be provided to 8 decimal places


Section 1: Issuer information

Name of issuer Genesis Energy Limited (GNE)

Financial product name/description Ordinary Shares

NZX ticker code GNE

ISIN (If unknown, check on NZX

website)

NZGNEE0001S7

Type of distribution

(Please mark with an X in the

relevant box/es)

Full Year Quarterly

Half Year X Special

DRP applies X

Record date 18/03/2022

Ex-Date (one business day before the

Record Date)

17/03/2022

Payment date (and allotment date for

DRP)

1/04/2022

Total monies associated with the

distribution

1


$ 90,790,472.64


Source of distribution (for example,

retained earnings)

Retained Earnings

Currency NZD

Section 2: Distribution amounts per financial product

Gross distribution

2

$0.11406667

Gross taxable amount

3

$0.11406667

Total cash distribution

4

$0.08700000

Excluded amount (applicable to listed

PIEs)

$0.00000000

Supplementary distribution amount $0.01228235

Section 3: Imputation credits and Resident Withholding Tax

5


Is the distribution imputed Fully imputed

Partial imputation

No imputation


1

Continuous issuers should indicate that this is based on the number of units on issue at the date of the form

2

“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of

Resident Withholding Tax (RWT).

3

“Gross taxable amount” is the gross distribution minus any excluded income.

4

“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.

This should include any excluded amounts, where applicable to listed PIEs.

5

The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is

fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute

advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied

6


80%

Imputation tax credits per financial

product

$0.02706667

Resident Withholding Tax per

financial product

$0.01057533

Section 4: Distribution re-investment plan (if applicable)

DRP % discount (if any)

2.5%

Start date and end date for

determining market price for DRP

17/03/2022 23/03/2022

Date strike price to be announced (if

not available at this time)

24/03/2022

Specify source of financial products to

be issued under DRP programme

(new issue or to be bought on market)

New Issue

DRP strike price per financial product


Last date to submit a participation

notice for this distribution in

accordance with DRP participation

terms

21/03/2022

Section 5: Authority for this announcement

Name of person authorised to make

this announcement

Tim McSweeney

Contact person for this

announcement

Tim McSweeney

Contact phone number +64 27 200 5548

Contact email address Timothy.McSweeney@genesisenergy.co.nz

Date of release through MAP 28/02/2022






6

Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.