Investor Roadshow May/June 2017 Marc England, Chief Executive - PowerPoint PPT Presentation

GENESIS ENERGY Investor Roadshow May/June 2017 Marc England, Chief Executive Chris Jewell, Chief Financial Officer

Market Overview

Overview of the NZ Energy Sector New Zealand Energy Sector 3 May 2017 Update Presentation

NZ Electricity Market 85% renewable, mainly hydro, but with limited storage Generation Volume Mix (%) 45,000 Annual Generation vs Hydro Storage 100% (GWh) 40,000 90% 35,000 80% 30,000 70% 25,000 60% Hydro Thermal 50% 20,000 Geothermal 40% Wind 15,000 30% 10,000 20% 5,000 10% - 0% Total Generation Hydro Generation Hydro Storage 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4 May 2017 Update Presentation

NZ Gas Market Natural gas produced in one region with stable supply • Currently 15 producing fields in Taranaki NET NATURAL GAS PRODUCTION • The decline in oil price has led to a decline in wells drilled since the 2011 peak • There is currently an oversupply of gas, but this may become more balanced by 2020 if current levels of exploration continue • Gas reserves are stable as smaller fields replace Maui’s dwindling production 5 May 2017 Update Presentation

NZ LPG Market New Zealand is historically an exporter of LPG but is becoming more balanced 1 1. Pro forma for the Genesis Energy Nova Retail LPG Acquisition 6 May 2017 Update Presentation

Energy Retailing Competitive retail landscape however traditional retailers still dominate ACTIVE RETAILERS (>100 ICPS) • 1 in 5 customers switch each year as the number 35 of energy participants continues to increase 29 30 25 − Price led competition but loyalty becoming 20 increasingly important 15 10 5 • Demand growth has been low, with the exception 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 of LPG which has seen over 6% growth in the past INDUSTRY CUSTOMER CONNECTION SWITCHING 5 years in the key 45kg and bulk segments % annualised Electricity Market Switching Rate Electricity Industry Rolling 12m 30% Gas Market Switching Rate Gas Industry Rolling 12m • Distributed energy costs remain high relative to 25% other fuel types but they are declining and in time will become an economic option 20% 15% 10% Apr-16 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Jul-16 Oct-16 Jan-17 7 May 2017 Update Presentation

Genesis Energy Overview

About Genesis Energy Largest electricity and gas retailer with a flexible generation portfolio and integrated fuel position 1. Pro forma for the Genesis Energy Nova Retail LPG Acquisition 9 May 2017 Update Presentation

About Genesis Energy Only fully integrated energy management company in New Zealand Market Share 1 39% 25% 19% Electricity Gas LPG Production Generation Retail 1. Pro forma for the Genesis Energy Nova Retail LPG Acquisition 10 May 2017 Update Presentation

Financial Overview A growing dividend stream over time with a BBB+ credit rating EBITDAF 1 • $156 million of EBITDAF delivered in first half of $ MILLION 350 FY17 in line with expectations and guidance 300 250 • EPS up 4% over the first half 200 150 • 8.2cps dividend declared and paid representing 100 50 a 7.2% cash yield annualised 0 FY13 FY14 FY15 FY16 FY17 • Dividend policy to grow over time in real terms DIVIDENDS DECLARED AND FREE CASH FLOW $ MILLION 250 • Committed to BBB+ credit rating Dividends Free Cash Flow 200 − Genesis Energy continues to target a net debt to EBITDAF ratio of 2.5x to 2.8x over time 150 − Recently completed successful $225 million 100 hybrid bond raising resulting in pro forma gearing of 33% 50 FY13 FY14 FY15 FY16 1. FY17 based on mid point of guidance 11 May 2017 Update Presentation

Strategy and Performance Update

Genesis Energy Highlights A reinvigorated strategy in place Announced Acquisition of an Reset Vision and Transformation Additional 15% Strategy Journey Underway Interest in Kupe Strong Announced FY17 EBITDAF Health & Safety Acquisition of Guidance Range Performance with Nova Energy Retail $320 to $330 lowest TRIFR in LPG Business million market 13 May 2017 Update Presentation

Strategy Our plan on a page REIMAGINING ENERGY Vision to be customers’ first choice for energy management Strategic Themes OPTIMISE INNOVATE INVEST In long-term value creation For medium term growth To improve short term return Strategic Priorities Create enduring Enhance Maximise Leverage data, Deploy Organise for return from customer experience with analysis and technology to best in class core activities insight relationships new business build trust strategic models execution Lean start up Commercial Data driven decision Scaled agile ways of Critical Future product relationship capabilities making working development management Software Field force Distributed asset Sales capabilities development management management 14 May 2017 Update Presentation

Strategic Themes To Energy Management 1. Optimise generation 2. Optimise “Traditional Retail “ Optimise − Deliver best in class cost to serve To improve short term − Drive loyalty into the customer base return − Win and keep valuable customers 3. Seeking corporate efficiency gains 1. Enable products and services based on new customer data flows 2. Become market maker of customer comfort, convenience and control Innovate 3. Maximise the value of our Bottled Gas resources For medium term growth 4. Grow market share in Business to Business segment 5. Create an empowered and accountable agile culture and way of working 1. Investment into systems and data capabilities, including accelerated foundation investment in retail Invest 2. Develop eco-system platforms that deliver comfort, convenience and control for customers and advantage for Genesis Energy In long-term value creation 3. Obtain greater influence of our Kupe business 4. Targeted business growth 15 May 2017 Update Presentation

Optimise To improve short term returns COST TO ACQUIRE PER CUSTOMER SALES BY ACQUISITION CHANNEL Door-to-door Outbound HY17 HY16 60 110 160 210 260 2012 2013 2014 2015 2016 Cost to acquire down 15% $6 million in cost savings Online acquisitions from lower and less delivered in HY17 channels growing frequent discounts TOTAL RECORDABLE INJURY FREQUENCY RATE CUSTOMER INTERACTIONS 0.65 0.37 Self Service Transactions Digitial Usage Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Became a member of Flybuys in May 2017, NZ’s Call volumes down and self TRIFR down 42% year and service interactions up largest loyalty program lowest in peer group 16 May 2017 Update Presentation

Innovate For medium term growth LPG CUSTOMERS 18,000 16,000 14,000 12,000 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Agile way of working Implemented C&I bottle LPG customers up 25% embedded in business management solution year on year Held an inaugural SME field force in place Launched NZ’s first real world hackathon in March 2017 research and development Q3 FY17 energy community 17 May 2017 Update Presentation

Invest In long term value creation Kupe – building on our LPG – investing to grow retail integrated fuels strategy and and bulk market share with creating a flexible fuels acquisition of Nova Energy strategy with 15% share Retail LPG business acquisition from NZOG Distributed generation and Foundation technology Energy Management systems – New integrated products – launched ‘The digital and voice platform in Local Energy Project’ place with further investment planned to support optimisation of the customer experience 18 May 2017 Update Presentation

Acquisition of 15% stake in Kupe Greater fuel flexibility and JV influence 1. Enhances ‘Integrated Fuels Strategy’ to create value from production through to generation and retail: ‒ Ownership of more uncontracted gas volumes ‒ Additional LPG volumes, 21% of national production, to boost position in wholesale LPG market ‒ Improved support for retail LPG growth initiative ‒ Attractively priced LPG contract for all of NZOG’s share of LPG 2. Improves level of influence and control within the JV 3. Underpins progressive dividend policy with a more diverse earnings stream 4. Strengthens medium term Balance Sheet metrics 5. Kupe field well understood by Genesis Energy and a strong performing quality asset 19 May 2017 Update Presentation

Nova Energy Retail LPG Acquisition Pivotal moment in customer centric-growth strategy with $192 million acquisition  Significant LPG distribution network covering key demand centres in New Zealand and complementary to Genesis Energy’s existing footprint  Well established customer base across residential, commercial and industrial customers  Distribution chain ideally positioned to capture ongoing growth in New Zealand’s LPG market  Experienced operating team adding to Genesis Energy’s existing capabilities  ~$17 million in additional EBITDAF before integration costs and synergies  Option to acquire Nova’s interest in Liquigas 20 May 2017 Update Presentation