Genesis Energy Investor Presentation

21 November 2024
Presenters:
Edward Hyde CTTO
Stephen England-Hall CRO
Retail and
Technology
Strategy
Showcase

Disclaimer
This presentation has been prepared by Genesis Energy Limited (“Genesis
Energy”) for information purposes only. This disclaimer applies to this
presentation. For these purposes, “presentation” means this document
and the information contained within it, as well as the verbal or written
comments of any person presenting it.
This presentation is of a general and summary nature and does not
purport to be complete or exhaustive nor does it contain all the
information required for an investor to evaluate an investment.
This presentation contains forward-looking statements. Forward-looking
statements include projections and may include statements regarding
Genesis Energy’s intent, belief or current expectations in connection with
its future operating or financial performance or market conditions.
Forward-looking statements in this presentation may also include
statements regarding the timetable, conduct and outcome of the general
strategy of Genesis Energy, statements about the plans, targets, objectives
and strategies of Genesis Energy, statements about the industry and the
markets in which Genesis Energy operates and statements about the
future performance of, and outlook for, Genesis Energy’s business. Any
indications of, or guidance or outlook on, future earnings or financial
position or performance and future distributions are also forward-looking
statements.
Forward-looking statements in this presentation are not guarantees or
predictions of future performance, are based on current expectations and
involve risks, uncertainties, assumptions, contingencies and other factors,
many of which are outside Genesis Energy’s control, are difficult to predict,
and which may cause the actual results or performance of Genesis Energy
to be materially different from any future results or performance
expressed or implied by such forward-looking statements. This risk of
inaccuracies may be heightened in relation to forward-looking statements
that relate to longer timeframes, as such statements may incorporate a
greater number of assumptions and estimates. Genesis Energy gives no
warranty or representation in relation to any forward-looking statement,
its future financial performance or any future matter. Forward-looking
statements speak only as of the date of this presentation.
Forward-looking statements can generally be identified by the use of
words such as “approximate”, “project”, “foresee”, “plan”, “target”,
“seek”, “expect”, “aim”, “intend”, “anticipate”, “believe”, “estimate”,
“may”, “should”, “will”, “objective”, “assume”, “guidance”, “outlook” or
similar expressions.
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.
Genesis Energy is subject to disclosure obligations under the NZX Listing
Rules that requires it to notify certain material information
to NZX for the purpose of that information being made available to
participants in the market. This presentation should be read in conjunction
with Genesis Energy’s Integrated Report for FY24 and Genesis Energy’s
periodic and continuous disclosure announcements released to NZX (and
to ASX), which are available at www.nzx.com. and www. asx.com.au.
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. This presentation does not constitute financial, 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.

3.

GEN35: 8 BY ‘28
Horizon 2 Objectives to deliver mid-$500m EBITDAF
INITIATIVEFY28GOAL
BillingandCRMreplatform
FullimplementationacrossGenesisandFrank by FY27
CustomerFlexibility150MWofcustomerflexibility
Electrification(EV)30%ofEVownersGenesiscustomers
BESS100MW/200MWhBESSoperationalatHuntly
GasStorageGasstoragesufficientforseasonaloperationofHuntlyUnit5
CUSTOMER
Empowerthe
customerled
transition
FLEXIBILITY
HuntlyFlexibility
1,400MW
SolarUpto500MWofsolardevelopedandoperational
Biomass300kt perannumofbiomassavailableforHuntly
WindDevelopmentpathway300MWofwind
RENEWABLES
KupeRenewables
8,300GWh
Netzero2040

5.

5.

5.

Gen35 Horizon 2 Strategy on track
Accelerated Transitions and Earnings Growth
Horizon 2
FY28
Retail &
Technology
Retail and Technology Operating Review•Second stage of Retail operating model confirmed resulting in a further
reduction of 70 FTE across retail in Q3 FY25.
•On track for a 200 FTE reduction by FY26.
Billing and CRM re-platform•The build for the first release for the Frank brand is complete with the
solution in system test phases.
•Tracking to a late FY25 go-live for Frank, and the Genesis brands by the
end of FY27.
•Frank is over 55% of the total solution functionality for the remaining
Genesis releases.
Electrification
(EV)
ChargeNet•Invested $64m for a 65% equity stake in ChargeNet
•Investment will accelerate the doubling in number of fast-chargers in the
network
Customer
Flexibility
Hot-water control•Completed trial of demand flexibility software, Kinergy, with 5.5k
customers managing 17MW of hot water cylinders.

6.

Profit from progress: boosting core performance and making the transition cheaper and easier for
customers
WHERE
W E P L AY
HOW WE
DELIVER
WHAT WE’LL
DELIVER
Home
GROW
CORE VALUE
C R EAT E
TRANSITION VALUE
EXPAND
RELATIONSHIP VALUE
Business
•No.1 brand equity in energy market
•Cost Efficient Core
•Balance Demand Shape
•Lead in EV Adoption
•Maximise Gas/LPG Value
•Virtual Power Plant + DER
•Energy Adjacencies (LPG, Solar etc)
•Non-Energy Adjacencies (Mobile,
Broadband etc)
Helping our customers to
transition and generating value
while doing so
Deepen and lengthen our
customer relationships
Increasing our margin
contribution
Core Efficiency
Monetising our customer relationship
Gross Margin Growth
Empowering the customer led transition

7.

Focusing on our core
FY24 we changed our model. FY25 we are delivering sustainable results.
A focus on Value, Simplification and Efficiency
is driving sustainable results for Genesis
A further reduction of 70 core Retail
FTE confirmed for Q3 FY25.
878
874
838
780
764
32
33
40
75
90
910
907
878
855
854
FY24 Q1Q2Q3Q4FY25 Q1
Retail FTE split - FY24 Q1 v FY25 Q1
Core FTEDigital Projects FTETotal FTE
Core retail excludes non-recurring projects
$130.00
$140.00
$150.00
$160.00
FY24 Q1FY25 Q1
FY24 Q1 v FY25 Q1 Highlights
•$16m uplift in gross margin
•13% (114) reduction in core FTE
•$3m (7%) reduction in retail core OPEX
•4.1% ($6.19) increase in electricity netback
Electricity Netback FY24 Q1 v FY25 Q1
Increased 4.1%

8.

Future value pools
Beyond core margin, future value is created by flexing the edgeof the energy system
Electric
Transport
Owning the EV transition and
growing market share of
higher value customers at
home, on the road and at
destination
•Customers on Energy
EV plan
•ChargeNet investment
Smart
Energy
Distributed
Generation
& Storage
Generating and storing energy
at the edge of the grid that
lowers the total cost of energy
to customers and improves
Genesis margin
•Arbitrage value from
Solar & Battery
installations
Customer
Flex
Maximising Genesis portfolio
value while reducing total
energy costs to customers and
improving energy security for
Aotearoa
•Arbitrage value from
load shifting of
home/business
appliances
•Demand flexibility
Broadband
and Mobile
Monetising our customer
relationships by deepening
and extending them with
adjacent products
•Margin from
broadband and mobile
connections
Value Pool
Potential EBITDAF Contribution ($m)
Levers
Approach
010203040506070
FY28FY35
10
65
10
20
4
10
4
35

9.

ChargeNet
Genesis invested $64m for 65% of the leading charging infrastructure company, @15% IRR
ChargeNet is the Leading Public
Charger Provider
349
150
140
128
90
Source: Owned DC chargepoint, estimate Nov 2024
•An established position as the leading player in
public charging infrastructure
•Preferred destinations and enroute locations
•110k EV’s vs 115k registered ChargeNet
customers
•Session sizes increasing with battery size and
investment in infrastructure (27% increase over
last 24 months)
Genesis’ investment supports our
electrification strategy
Electrification of transport is the
largest growth value pool in the
transition
Optimised entry point after national
footprint established. Proven
capability to acquire other networks
Linking on the road, at destination
and in home behaviours – opening
value for VPP and demand response
No. 1 Charging infrastructure
provider in NZ with a trusted brand
7,020 Weekly
14,710 Monthly
28,444 Quarterly
Unique Customers
(average FY24)
ChargeNet Monthly User Count Over Time
Number of users charging once in a month
Data driven new site and upgrade
selection optimising capital
investment and KWh delivered
Together accelerating sustainable
charging infrastructure
-
5,000
10,000
15,000
20,000
Mar 21Mar 22Mar 23Mar 24

10.

Natural Gas + LPG
Recognising value from scarcity in supply
14
16
18
20
Q1 FY24Q1 FY25
Gas Netback ($/GJ)
1000
1200
1400
1600
1800
Q1 FY24Q1 FY25
LPG Netback ($/Tonne)
Increased
13.9%
Increased
23.7%
Natural Gas – Continuing to maximise
value from scarcity
•Importation of LPG exists today
•Optimising our existing capabilities and assets
•Maintaining LPG margin through the transition
LPG - Future pathway through
importation
•Customers are still willing to pay
•Demand source for electrification
•Churn benefits – fewer competitors

11.

A transformation towards a focused and simplified business
ELECTRIFICATION
Activity focused on developing capabilities needed to deliver on the strategy and long-term goals
Platform
FLEXIBILITY
RENEWABLES
Delivery
•Digitise core services to drive efficiency
•A simpler, faster and cheaper landscape
•Ability to leverage world class partners
Data
•Delivering efficiently across time, cost and quality
dimensions
•Focused on Billing / CRM, Trading and General Ledger
•Leveraging the strengths of others – less in-house
•Using data to enhance customer lifetime value and CX
•Data to optimise our generation and fuels portfolio
•Enabling smarter decision-making across supply and demand
Platform
Delivery
•Focus on delivery of opex cost optimisation & productivity
improvements
•FY24 technology programme delivered; FY25 programme on track
•Monthly operational & cyber security performance above targets
Data
•Introduction of Project Delivery Playbook
•Billing/CRM on track, General Ledgers discovery complete &
Business Case developed, Trading discovery & options
progressing.
•Partnering with Tata Consulting Services (TCS) as primary
systems integrator
•Uplift in customer segmentation reporting & analytics
•Data platform & tools review to develop roadmap &
investment prioritisation
•5-year Wholesale technology roadmap crafted with key focus
on foundation data components & opportunities to leverage AI
for competitive advantage
Our Progress
Our Vision

12.

$61
$60
$55
$55
$56
$30
$39
$36
$12
$10
FY24FY25FY26FY27FY28
TechnologyDigital Projects
FY25 – On track for achievement
•Core technology projectsprioritised & governed centrally to
optimise investment portfolio
•Project spend on track
•$1M Core technology Opex reduction on track
FY26 – Medium to high confidence
•Building plan to deliver on FY26 target
•Engagement of partners to optimise digital delivery &
enable reduction in operational costs
HORIZON 1
HORIZON 2
HORIZON 3
Opex forecast – Technology ($m)
Peak in Digital projects spend due to
billing/CRMimplementation costs and
investment in tech systems
Unless otherwise stated, all $ are nominal. All numbers are directionally indicative and estimates only
A more focused and efficient technology programme
How we are tracking

Technology driving a lower cost business
•Simplify
processes and
operating model
•Modern billing
and customer
relationship
management
•Leverage the new
capabilities
Simplify
FY24-25
Re-platform
FY25-27
Accelerate
FY27+
•Re-platforming is underway on the Gentrack and
Salesforce g2.0 solution.
•The delivery is phased across the Frank and
Genesis brands.
Releases
Phase
Why are we doing this?
•An important driver of a new lower-cost and scalable retail
operating model through modernisation, simplification and
automation of core retail business operations.
What are the benefits?
•A next-generation platform ensuring a stable and secure
environment with a competitive cost base.
•Key benefits:
•Lower cost of Retail operations
•Increased billing flexibility and responsiveness
•Ability to broaden services (solar, flex etc)
How are we progressing?
•The build for the first release for the Frank brand is
complete with the solution in system test phases.
•Tracking to a late FY25 go-live for Frank, and the Genesis
brand by the end of FY27.
•Frank is over 55% of the total solution functionality for the
remaining Genesis releases.
Frank
Design
and build
Genesis
Billing and Customer Relationship Management (CRM) re-platform
Design
and build
Test
Test