Genesis Energy Limited · NZX:GNE
Genesis Energy — Debt Investor Presentation (March 2022)
31 slides from Genesis Energy's debt investor presentation, March 2022
Slide 1: Genesis Energy Limited Green Bond Offer
Genesis Energy Limited Green Bond Offer March 2022
Slide 2: Important Information Disclaimer
Important Information Disclaimer The offer (Offer) of six-year fixed-rate Genesis is subject to a disclosure The information in this Presentation is given dollars. Due to rounding, numbers within this unsecured, unsubordinated green bonds obligation that requires it to notify certain in good faith a
Slide 3: Agenda
Agenda 1. Green Bond Highlights 2. About Genesis 3. Strategic Outlook 4. Sustainable Finance Framework 5. Financial Performance 6. Key Terms and Dates
Slide 4: Green Bond Highlights
k Green Bond Highlights
Slide 5: Offer Highlights
Offer Highlights Issuer Genesis Description The Green Bonds are fixed-rate unsecured, unsubordinated green bonds of Genesis Issuer credit rating: BBB+ (stable) (S&P Global Ratings) Credit Rating Expected credit rating for Green Bonds: BBB+ (S&P Global Ratings) Issue Amount Up to NZ$75,000,000 (with
Slide 6: About Genesis
About Genesis
Slide 7: Genesis Overview
Genesis Overview KEY INFORMATION Revenue (FY21): $3.2 billion EBITDAF Guidance (FY22): $430-440 million 953 470,000 customers 2 PPA Market Capitalisation: $2.9 billion1 133 • 22% electricity market share Enterprise Value (HY22): $4.4 billion 138 • 34% gas market share Credit Rating: BBB+ (Standard &
Slide 8: HY Performance Highlights
HY 22 Performance Highlights Financial Operational Social EBITDAF 1 Strong Customer Loyalty Ngā Ara Creating $210m +26 13.2% Pathways Facilitating transformational education, NPAT $85 million Brand NPS Net Churn training and employment opportunities to prepare rangatahi for the future of work. Inter
Slide 9: Strategic Outlook
Strategic Outlook
Slide 10: An active enabler of New Zealand's energy transition
An active enabler of New Zealand’s energy transition Future-gen – transitioning our wholesale position to lead NZ’s energy transition Value from flexibility Grow renewables Transition Huntly and reliability Contract for Contract for Trial biofuels new renewable fuel flexibility as a fuel option gene
Slide 11: Future-gen programme on track to deliver lower cost renewables
Future-gen programme on track to deliver lower cost renewables • Future-gen has already displaced an estimated 330,000 GENESIS GENERATION DIVERSITY tonnes of carbon emissions through the Waipipi windfarm. Ownership Joint Venture PPA • Waipipi is now generating 455 GWh per annum. Hydro NI/SI • Kaiwai
Slide 12: Varied scenarios trend towards 96% to 98% renewable by 2030
Varied scenarios trend towards 96% to 98% renewable by 2030 Balanced Regulated Renewables Pressure cooker Oversupply Demand growth from EV An incentivised renewable Faster than anticipated Tiwai closure causes and industrials are evenly uptake with a goal of 100% demand growth with oversupply of low
Slide 13: A highly renewable market will require peaking capacity and seasonal storage
A highly renewable market will require peaking capacity and seasonal storage - market settings may need to adapt Near 100% renewable, spill makes further renewable build a A highly renewable1 grid draws on backup generation to cover costly way to displace remaining thermal infrequent peak capacity n
Slide 14: Considering further long-term carbon reduction commitments
Genesis is considering what further long-term carbon reduction commitments we can make • Genesis has committed to a 1.5 degree SCOPE 1 EMISSIONS - GENERATION INTENSITY (MEAN YEAR) Science-Based Target1 by 2025, which will reduce emissions by at least 1.2 million tonnes by FY252. • Our Future-gen str
Slide 15: Regulatory environment creates an opportunity to shape a low carbon energy system
Regulatory environment creates an opportunity for business, Government and regulators to collectively shape a low carbon energy system MfE Emissions Reductions Plan MBIE: NZ battery project • Delivered in 2022 determining the policy plans to meet • Work programme identifying renewable options to Pot
Slide 16: Sustainable Finance Framework
Sustainable Finance Framework
Slide 17: Overview of the Sustainable Finance Framework
Overview of the Sustainable Finance Framework Established by Genesis in November 2021. • Genesis’ Sustainable Finance Framework (Sustainable Finance Framework) sets out the process by which Genesis intends to issue and manage bonds and loans (Sustainable Debt) on an ongoing basis to support Genesis’
Slide 18: 35% of facilities linked to sustainable assets and outcomes
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 DECEMBER 2020 NOVEMBER/ JANUARY 2022 MARCH 2022 DECEMBER 2021 Sustainable Finance Genesis commits to an ambitious Framework Released $225
Slide 19: Pillars of the Sustainable Finance Framework
Pillars of the Sustainable Finance Framework Management & Governance Use of In accordance with Genesis’ Sustainable Finance Framework, Genesis intends to notionally allocate an amount equal to the proceeds of its green bonds and green loans to finance or refinance renewable energy assets, or other p
Slide 20: Eligible Asset Register
Eligible Asset Register Hydroelectricity Asset Value $m Green Debt Instrument Green Debt Value ($m) (30 June 2021) Rangipo GNE060 (prospective 751 Green Bond issuance) Tokaanu 1,363.9 GNE040 2252 Mangaio Tuai Total Green Debt3 300 Piripaua 486.2 Total Value ($m) Kaitawa Total Eligible Assets Value 2
Slide 21: External Review
External Review Pre Issuance Genesis obtained Pre-Issuance verification from DNV Business Assurance Australia Pty Ltd (DNV) that concludes that in DNV’s Verification opinion that the Sustainable Finance Framework and Eligible Asset Register are aligned with the Green Bond Principles and the Climate
Slide 22: Financial Performance
Financial Performance
Slide 23: HY22 Financial Summary
HY22 Financial Summary KEY FINANCIAL COMPARISONS1 $ millions - 2.6% + 62.9% + 1.0% + 97.4% + 8.0% - 49.5% - 3.4% - 15.4% + 1.2% + 4.5% 1 Due to the Implementation of IFRIC agenda decision on Configuration and Customisation costs incurred in implementing Software-as-a-Service, HY21 and FY21 comparabl
Slide 24: Capital invested for efficiency and long term resilience
Capital invested for efficiency and long term resilience CAPITAL EXPENDITURE1 Stay in business capital2 of $25.5m includes: $ MILLIONS 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.
Slide 25: Capital structure and debt profile
Capital structure and debt profile GENESIS DEBT PROFILE AT 31 DECEMBER 2021 NET DEBT/EBITDAF RATIO FALLING TO TARGET BAND $m $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 • S&P reaffirmed BBB+ credit rating in February 2022. FY22 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY47 FY49 Q3 Q4 Commercial Pa
Slide 26: Key Terms and Dates
Key Terms and Dates
Slide 27: Key Terms
Key Terms Issuer Genesis Description The Green Bonds are fixed-rate unsecured, unsubordinated green bonds of Genesis Issue Amount Up to NZ$75,000,000 (with the ability to accept oversubscriptions of up to an additional NZ$50,000,000 at Genesis' discretion) Term 6 years, maturing Tuesday, 14 March 20
Slide 28: Key Terms
Key Terms In accordance with Genesis' Sustainable Finance Framework, Genesis intends to notionally allocate an amount equal to the proceeds of the Green Bonds to finance or refinance renewable energy assets, or other projects, assets and/or activities, that meet the eligibility criteriaset out in th
Slide 29: Key Dates
Key Dates Opening Date Tuesday, 1 March 2022 Closing Date 11.00am, Friday, 4 March 2022 Rate Set Date Friday, 4 March 2022 Issue Date Monday, 14 March 2022 Expected Date of Initial Quotation on NZX Debt Market Tuesday, 15 March 2022 14 March and 14 September of each year up to and including the Matu
Slide 30: Non-GAAP Measures
Non-GAAP Measures EBITDAF (Earnings before net finance expense, income tax, depreciation, depletion, amortisation, impairment, fair value changes, and other gains and losses) is a non GAAP (generally accepted accounting practice) financial measure. It is commonly used within the electricity industry
Slide 31: Investor relations enquiries
Investor relations enquiries Tim McSweeney GM Investor Relations & Market Risk +64 27 200 5548
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