FY19 Full Year Results Presentation 28 August 2019 Marc England - PowerPoint PPT Presentation

FY19 Full Year Results Presentation 28 August 2019 Marc England – CHIEF EXECUTIVE OFFICER Chris Jewell – CHIEF FINANCIAL OFFICER G E N E S I S E N E R G Y L I M I T E D

Disclaimer This presentation has been prepared by Genesis Energy Limited (‘Genesis Energy’) for information purposes only. The informati on 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 may contain projections or forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks. Although management may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realised. EBITDAF, underlying profit and free cash flow are non-GAAP (generally accepted accounting practice) measures. 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. This presentation does not constitute investment advice. Genesis Energy Limited FY19 Full Year Result Presentation 2.

AGENDA 1 Year in Review 2 Financial Performance and Guidance 3 Strategy Update and Outlook 4 Supplementary Information Genesis Energy Limited FY19 Full Year Result Presentation 3.

1. Year in Review Genesis Energy Limited FY19 Full Year Result Presentation 4.

Results at a glance 1 Both gross and net churn is expressed on the basis of a 12 month rolling average. 2 Installation Connection Point (ICP), a connection point that is both occupied and has not been disconnected. 3 Netback is defined as Retail EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units and excluding Genesis Energy Limited FY19 Full Year Result Presentation 5. corporate allocation costs.

Earnings growth — EBITDAF growth of $3m, and continued growth in FY19 dividends translating to a 6.6% gross yield 1 EBITDAF GROSS DIVIDEND YIELD COMPARISON WITH PEERS AND LONG-TERM BOND YIELDS Genesis Meridian Mercury $ MILLIONS Contact US 10 Yr Govt Bonds NZ 10 Yr Govt Bonds 14% 12% Leading 6.6% gross yield 10% 8% 363 360 345 335 333 6% 4% 2% 0% Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-16 Aug-17 Aug-18 Aug-19 FY15 FY16 FY17 FY18 FY19 Source: Bloomberg 1 Gross yield based on closing share price as at 27 August 2019, $3.37 Genesis Energy Limited FY19 Full Year Result Presentation 6.

A customer focused strategy coming to life — Investment in loyalty, brand, products and innovation is driving value, CLV up 3% 50K UNIQUE ENERGY IQ USERS PER WEEK, 100K USERS PER MONTH (ROLLING 3 MONTH AVG) 70,000 Weekly Unique EIQ Users 60,000 50,000 40,000 30,000 20,000 Knowledge 10,000 - Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 ~2,000 Energy Management Connections 1 RESIDENTIAL CUSTOMER LIFE VALUE INDEX 2 (CLV) UP 3%, RESIDENTIAL ICP NUMBERS UP 0.5% Advice deployed CLV Index (LHS) Action CLV up 104% 3% 103% 102% 101% 100% 99% 98% 97% - Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 1 Energy Management Connection: An IoT device deployed to a home or business with the specific aim of providing a customer with insights on how to optimise the way they use energy. Electricity Insights, Bottle 2 Customer Lifetime Value is the margin for each customer, discounted over its expected tenure. Gas Monitoring and Electricity Monitoring are all products that use devices that fall within this definition. Genesis Energy Limited FY19 Full Year Result Presentation 7.

Residential customers are increasingly engaged and loyal — Increased value from our residential customer base through loyalty, gross churn down 3.8 ppt RESIDENTIAL ELECTRICITY SALES VOLUMES (GWh) & NETBACK 1 ($/MWh) Sales Volume Netback RESIDENTIAL CUSTOMER GROSS 2 CHURN DOWN 3.8 ppt, NET CHURN DOWN 2.4 ppt (ROLLING 12 Volume/value Sales Volume (GWh) 3,500 $130 MONTH AVG) mix $116 Net Churn Gross Churn $117 40% 3,000 $120 2 $112 32.8% 31.4% 29.0% 2,500 $110 30% 27.7% 20.1% 18.8% 2,000 $100 17.0% 20% 16.4% FY17 FY18 FY19 RESIDENTIAL GAS SALES VOLUMES (GJ) & NETBACK ($/GJ) 10% Sales Volume Netback Volume/value 3,000 $12.0 0% $11.4 Sales Volume (GJ) mix 1HFY18 2HFY18 1HFY19 2HFY19 2,500 $11.0 $10.8 RESIDENTIAL DUAL FUEL CUSTOMERS UP 6.1%, CHURN DOWN TO 7.8% (ROLLING 12 MONTH AVG) $10.7 2,000 $10.0 1,500 $9.0 Customers > 1 Fuel Dual Fuel Churn (RHS) 114,000 12% 1,000 $8.0 25% of residential 11% 112,000 FY17 FY18 FY19 customers now 10% RESIDENTIAL LPG SALES VOLUMES (t) & NETBACK ($/t) choose dual fuel 110,000 9% Sales Volume Netback 16,000 $1,000 108,000 8% Volume/value Sales Volume (t) mix 7% 15,000 $900 Dual fuel churn 106,000 6% $765 down to 7.8% 14,000 $800 104,000 5% 2 13,000 $745 $700 102,000 4% Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 12,000 $600 FY17 FY18 FY19 1 Netback is defined as Retail EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units and excluding corporate allocation costs. 2 Residential LPG & Electricity Netbacks (FY18) have been normalised to account for one-off accounting adjustments and Nova management fees relating to acquisition. Genesis Energy Limited FY19 Full Year Result Presentation 8. 3 Gross churn is defined as customers who instigated a trader switch or home move, whilst net churn is post home move save and retentions.

Growing business customer volume with targeted propositions — Focus remains on volume, but not at the expense of value, business sales volume up 7.8% BUSINESS ELECTRICITY SALES VOLUMES (GWh) & NETBACK ($/MWh) Sales Volume Netback BUSINESS DUAL FUEL CUSTOMERS UP 25%, CHURN DOWN TO 7.9% (ROLLING 12 MONTH AVG) 3,500 Sales Volume (GWh) Volume/value Customers > 1 Fuel Dual Fuel Churn (RHS) $110 $94 mix 3,000 $89 11% of business customers on 5,000 12% $90 dual fuel presents further 11% $88 2,500 $70 growth opportunity 10% 4,000 9% 2,000 $50 8% FY17 FY18 FY19 7% Dual fuel churn BUSINESS GAS SALES VOLUMES (GJ) & NETBACK ($/GJ) 3,000 6% down to 7.9% Sales Volume Netback 6,000 $10.0 5% Volume/value Sales Volume (GJ) 2,000 4% $9.0 mix Jul-18 Sep-18 Nov-18 Feb-19 5,000 Aug-18 Oct-18 Dec-18 Jan-19 Mar-19 Apr-19 May-19 Jun-19 $8.0 $8.0 4,000 $7.8 $7.6 $7.0 BUSINESS SALES VOLUME UP 7.8% ON A GWh EQUIVALENT BASIS Elec (GWh) Gas (GWhe) LPG (GWhe) 3,000 $6.0 FY17 FY18 FY19 5,000 BUSINESS LPG SALES VOLUMES (t) & NETBACK ($/t) LPG +9.5% Sales Volume Netback 4,000 24,000 $1,000 $882 Volume/value Sales Volume (t) Gas +12.4% GWh 3,000 23,000 $900 mix 2,000 22,000 $800 $754 21,000 $700 1,000 Electricity +5.4% 20,000 $600 - FY17 FY18 FY19 FY18 FY19 1 Netback is defined as Retail EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units and excluding corporate allocation costs. Genesis Energy Limited FY19 Full Year Result Presentation 9.

Digital initiatives driving down cost to serve — Cost to serve is down 7% to $141 per connection (ICP 1 ) DIGITAL INTERACTIONS UP 24 ppt SINCE FY16 30 ppt INCREASE IN CUSTOMER E-BILL ADOPTION SINCE FY16 Phone WebChat Email Digital 80% 75% 75% E-bill adoption FY19 30% 12% 58% up 30 ppt 70% 65% FY18 40% 14% 47% 60% 56% 55% 52% FY17 44% 13% 43% 50% 45% 45% 40% FY16 52% 14% 34% FY16 FY17 FY18 FY19 CONTINUED IMPROVEMENT IN COST TO SERVE PER ICP 1 , DOWN 7% ASSISTED PHONE INTERACTIONS DOWN 23% IN 12 MONTHS YoY Phone Phone (FY19) Phone (FY18) $170 120 interactions Thousands $161 down 23% $160 $160 100 Cost to Serve per ICP $151 $150 Assisted interactions 80 Cost to Serve per ICP down $141 $140 60 7% on FY18 and 13% on FY16 $130 40 $120 20 0 $110 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 FY16 FY17 FY18 FY19 1 Installation Connection Point (ICP), a connection point that is both occupied and has not been disconnected. Genesis Energy Limited FY19 Full Year Result Presentation 10.