Presentation 14 February 2018 Marc England CHIEF EXECUTIVE Chris - - PowerPoint PPT Presentation

G E N E S I S E N E R G Y L I M I T E D

HY18 Result Presentation

14 February 2018

Marc England – CHIEF EXECUTIVE Chris Jewell – CHIEF FINANCIAL OFFICER

AGENDA

Key Highlights Operational and Strategic Update Financial Performance Outlook

HY18 RESULT PRESENTATION 2

• 1. Key

Highlights

HY18 key highlights

— positive start to FY18 as our diverse portfolio, acquisitions and strategy deliver results

HY18 RESULT PRESENTATION 4

• EBITDAF up 28% to $200m, 15% excluding acquisitions
• NPAT down 24% to $28 million, due to fair value movements
• Underlying earnings up 14% to $43 million
• Free cash flow up 37% to $129 million
• Operating cash flow up 57% to $199 million
• Operating costs1up 16%, down 1% on an underlying basis

excluding growth expenditure and carbon costs

• Strong wholesale performance with generation volumes up 25%,

GWAP up 80%

• Steady performance for customer segment (EBITDAF impacted

by higher costs)

• Kupe gas production at 94% of maximum capacity supporting

generation requirements

• TRIFR of 1.37 remains at sector leading levels
• New brand launched with promoter score up 2 ppts
• > 100,000 EOL customers, up 5%
• Organic LPG growth up 27%. LPG integration on track including

bringing forward third party distributor exit

• B2B sales teams drive volumes up 17%
• Thermal assets providing an important role in ensuring New

Zealand security of supply

• Dividend declared of 8.3cps, up 1%
• Dividend Reinvestment Plan introduced to support growth with

NZ government commitment to retain 51% ownership

• 12 month total shareholder return 7% ahead of NZX50

Strong financial performance Delivering business outcomes Continuing progress on strategy Converting to shareholder returns

• 1. Operating costs refers to “other operating expenses and employee benefits”, including

carbon costs for trading purposes. Refer to Operating costs on slide 9 for further information.

• 2. Financial Performance

— strong financial performance in variable market conditions

156 37 37 149 95 23 82 200 28 43 173 129 27 83 EBITDAF NPAT Underlying Earnings Operating Costs Free Cash Flow Capital Expenditure Interim Dividend $ MILLIONS HY17 HY18

FINANCIAL HIGHLIGHTS

+ 28%

• 24%

+ 14% + 16% + 17% + 37% + 1%

HY18 RESULT PRESENTATION 6

HY18 financial highlights

HY18 vs HY17 EBITDAF $ MILLIONS

HY18 RESULT PRESENTATION 7

— 28% EBITDAF growth driven by strong underlying performance and FY17 acquisitions

HY18 EBITDAF waterfall

156 200 4 4 7 25 19 2 7 5 2 HY17 EBITDAF Generation margin Kupe acquisition Kupe volumes and fuel prices LPG acquisition Pricing improvements Lines costs Reduced retail demand Investment in growth

• pex

Other HY18 EBITDAF

Favourable Unfavourable

EBITDAF down $6 million (9%) to $57 million Electricity sales 3,008 GWh up 3% Gas sales 4.0PJ down 7% LPG sales 18.3 kilo tonnes up 610% Transfer price impact $(2.5) million EBITDAF up $24 million (29%) to $106 million Generation 3,870 GWh up 25% GWAP $96/MWh up 80% Average fuel cost $36/MWh up 17% Transfer price impact $2.5 million EBITDAF up $24 million (75%) to $56 million Gas sales 6.1PJ up 61% Oil sales 241kbbl up 64% LPG sales 22.7kt up 96%

HY18 RESULT PRESENTATION 8

— Strong H1 for Wholesale and Kupe with Customer prioritising growth investment

Segment performance

Kupe

• Impact of 15% additional stake and strong production levels to

support thermal plant Wholesale

• Strong performance as Genesis’ diverse portfolio responds to market

conditions Customer

• LPG distribution business acquisition benefit offset by investment

in growth

138 137 HY14 HY15 HY16 HY17 HY18 $ MILLIONS Underlying operating expenses Carbon costs Investment in growth LPG acquisition 176 149 144 142 173

OPERATING EXPENSES1 OPERATING EXPENSE BRIDGE HY18 RESULT PRESENTATION 9

Operating expenses

— underlying expenses down 1%, before acquisitions, investment in growth and carbon $7 million of additional investment to support growth in line with market guidance, carbon for trading purposes up in line with increase in carbon costs

Favourable Unfavourable

Operating cost efficiencies in core business, underlying expenses down 1%

• 2. Carbon costs represent the cost of carbon used for trading purposes, offset by revenue recognised in other revenue.

149 173 6 7 14 3 HY17

• perating

expenses LPG acquisition Investment in growth opex Carbon costs Other movements HY18

• perating

expenses $ MILLIONS

2 2

• 1. Operating costs refers to “other operating expenses and employee benefits”.
• 3. Investment in business sales teams and rebranding.

3

83 92 114 95 129 HY14 HY15 HY16 HY17 HY18 $ MILLIONS

OPERATING CASH FLOW

165 136 163 127 199 HY14 HY15 HY16 HY17 HY18 $ MILLIONS

FREE CASH FLOW1 HY18 RESULT PRESENTATION 10

Cash flow

— operating cash flow up 57% and free cash flow up 37% in line with EBITDAF growth Significantly up reflecting higher EBITDAF, reduction in coal inventory and carbon trading units, reduced tax pre-payments and use of pre-paid gas Improved free cash flow reflects operating performance improvement

• 1. Free cash flow represents EBITDAF less tax, interest and stay in business capital

expenditure.

58 44 40 39 22 24 8 5 FY14 FY15 FY16 FY17 FY18 YTD Stay in Business Tekapo Canal Growth

CAPITAL EXPENDITURE1

$ MILLIONS

HY18 RESULT PRESENTATION 11

Capital expenditure

— disciplined approach as capital reallocated to support growth segments Reallocation of capital to growth areas with a higher ROCE

CAPITAL EXPENDITURE1

Continued discipline on spend

• 1. Capital expenditure excludes M&A activities.

FY14 FY15 FY16 FY17 FY18 YTD Wholesale Customer Kupe Technology & Digital $ MILLIONS 82 44 40 47 27

2

• 2. Key projects include LPG distribution investment, the Energy Project and

Technology and Digital development.

NET DEBT AND NET DEBT/EBITDAF

966 905 831 1,210 1,158 2.9 2.5 2.6 3.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 200 400 600 800 1000 1200 FY14 FY15 FY16 FY17 HY18 FY18 Fct Net debt Net debt/EBITDAF 2.9

SOURCES OF FUNDING HY18 RESULT PRESENTATION 12

Capital structure

— net debt has reduced by $52m with improving debt metrics Average tenor at HY18 up 3.1 years, interest costs down 20 basis points to 5.8%, improving net debt to EBITDAF Reduced reliance on bank debt, S&P rating reaffirmed at BBB+, 15 January 2018

310 240 200 193 100

31 DECEMBER 2016 31 DECEMBER 2017

190 290 425 193 100 Bank debt Wholesale domestic bonds Capital bonds USPP Retail bonds 3.1

anticipated 30 Jun18 range

DIVIDEND & PAYOUT HISTORY

64 80 82 82 83 77% 87% 72% 87% 64% 0% 20% 40% 60% 80% 100% 120% 50 HY14 HY15 HY16 HY17 HY18 Dividends % of Free Cash Flow

HY18 RESULT PRESENTATION 13

Dividends

— continued growth in dividends with a 8.6% gross yield1 and outperformance of TSR relative to peers Interim dividend of 8.3cpu declared (up 1.2%), with 80% imputation, representing a 8.6% gross yield1

2017 TOTAL SHAREHOLDER RETURN Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Genesis Peer Index NZX50

29.2% 25.1% 22.0%

TSR has exceeded market by 7.2% and peer index by 4.1% in past 12 months

2017 closing share price: $2.52

• 1. Gross yield based on closing share price as at 29 December 2017.

• 3. Operational and

strategic update

60 70 80 90 100 110 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 ‘000’s Electricity Gas LPG LPG SALES VOLUMES NPS AND PROMOTER SCORE

HY18 RESULT PRESENTATION 15

Customer segment highlights

— growth in LPG, B2B and EOL, with NPS improving

Significant organic growth, new distribution platform in place Refreshed brand showing early signs of improved NPS B2B segment momentum growing with 11% volume increase EOL, 2nd largest tier 2 retailer, > 100,000 customers, up 4% from June 2017

EOL CONNECTIONS

• 10%

0% 10% 20% 30% 40% NPS - Genesis 3 Month Rolling Promoter - Genesis 3 Month Rolling TOTAL B2B VOLUME BILLED

10,000 20,000 30,000 40,000 50,000 60,000 70,000 1 2 3 4 5 6 7 8 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

PJ

GE-Rolling 12M (KT) EOL-Rolling 12M (KT) ICP count 2,353 2,619 500 1,000 1,500 2,000 2,500 3,000 Dec-16 Dec-17

GWh

HY18 RESULT PRESENTATION 16

Brand refresh

— new Genesis brand launched focused on leading the way to a new energy future

5%

Improvement in brand ‘Top 2 Consideration’, a lead indicator for sales conversions

68%

• f New Zealanders believe

the brand relaunch makes Genesis seem more innovative than other energy providers1

78%

• f New Zealander’s

believe that the brand relaunch says something new about Genesis1

2%

Improvement in promoter score whilst NPS trending positive

• 1. Based on a representative sample of 524 energy decision makers.

2

Customer websites launched

0% 5% 10% 15% 20% 25% 30% segment 1 segment 2 segment 3 segment 4 segment 5 Low High Spend per month Segment share of total market Genesis share of segment

HY18 RESULT PRESENTATION 17

Residential

— Continued progress on optimising residential segment for value

GE RESIDENTIAL VALUE MIX1

Genesis continues to target high value customers 7% improvement in customer mix in past 12 months towards higher value customers

GE SEGMENT VALUE MIX1

• 1. Source: Commissioned research & Genesis analysis.

Low High

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Negative Low Medium Low Medium High High

HY18 RESULT PRESENTATION 18

Energy IQ

— a significant step forward in achieving our Energy Management vision

Electricity Forecast Home Comparison Energy Mix Successful launch of Energy IQ developed with customers and now available to 75% of residential customers

• Agile environment delivering energy

management solutions at pace

• Three new features delivered, including

Electricity Forecast, an exclusive Genesis Energy innovation

• Services developed with customers, first in the

Local Energy Project, followed by a dedicated Beta release section in My Account

• Customer feedback positive, with service ratings

at 3.9 out of 5, service enhancements underway

HY18 RESULT PRESENTATION 19

Energy Online

— 2nd largest tier 2 retailer with >100,000 connections

TIER 2 RETAILERS1

Significant growth in past 12 months, total customers up 5%, gas up 28%, LPG up 176%

EOL GROWTH

106,506 100,492 72,577 63,411 27,229 23,372 20,156 18,882 44,289 Nova Energy Energy Online Pulse Powershop Glo-Bug Flick Bosco Electric Kiwi Others Electricity Connections Gas Connections LPG Customers 75,000 80,000 85,000 90,000 95,000 100,000 105,000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Electricity Gas LPG

• 1. Source: Electricity Authority, as at January 2018.

HY18 RESULT PRESENTATION 20

LPG

— significant organic growth with integration of new distribution business complete

INTEGRATION UPDATE ORGANIC GROWTH COMPOSITION

Activity Status Staff

• 100% migrated

Systems

• Billing and distribution migrated

Customers

• 29,000 migrated, remaining receiving Genesis branded bills
• Churn in line with forecast
• Self-service ordering of bottles up from 60% to 80%

Call Centre

• Fully established, 160,000 calls handled p.a. down to 120,000

Brand

• 23 depots, 68 vehicles, customer collateral completed
• c.100,000 cylinders well advanced

LPG DISTRIBUTION EXPANSION

• Expanding new distribution capability

to match existing customer base by investing in new depots and delivery contractors

• Targeted regions contain approx.

20,000+ customers Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Customer Numbers Duel LPG only Existing depots New delivery locations

HY18 RESULT PRESENTATION 21

Bad debt

— 10% improvement in bad debt expected in FY18

6% reduction in DSO2 for Genesis Brand

17 Days

December 2016

16 Days

December 2017

91%

Drastic drop in medically dependent debt compared to December 2016 due to improved internal processes across both brands

69%

Genesis Energy Online

0.30% 0.32% 0.34% 0.36% 0.38% 0.40% 0.42% 0.44% JAN-17 FEB-17 MAR-17 APR-17 MAY-17 JUN-17 JUL-17 AUG-17 SEP-17 OCT-17 NOV-17 DEC-17

BAD DEBT % TO REVENUE (ROLLING 12 MONTHS) 1

• 2. Day sales outstanding refers to how many days of sales are owing on average.
• 1. Bad debt expense refers to the net amount of uncollectible debt written off.

138 145 120 109 172 265 141 29 38 50 100 150 200 250 300 350 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Total Emissions (kt CO2) Genesis Emissions Swaption Emisssions Demand 53.4 96.2 GWAP $MWh GWAP/TWAP

HY18 RESULT PRESENTATION 22

Generation & Wholesale segment highlights

— diverse portfolio creating value in volatile market conditions

Portfolio responding well in volatile market conditions Continuing to find ways to optimise portfolio

OUTAGE MANAGEMENT EMISSIONS SUMMARY

Improved outage planning increasing generation days

1485 1625 2173 1697 Thermal Generation GWh Renewable Generation GWh

+ 80.2% + 4.5% + 46.3% Partly driven by swaption demand

HY17 HY18

1.17 1.01 1.50 1.01 0.99 1.06 1.02 1.03 1.55 1.03 1.42 1.04 0.98 1.07 1.01 1.10 Rankines Unit 5 Unit 6 Tokaanu Rangipo Waikare- moana Tekapo Portfolio Historic 2017

0.0% 1.0% 2.0% 3.0% 4.0% HY14 HY15 HY16 HY17 HY18 75% 80% 85% 90% 95%

Forced Outage Factor (FOF) % Equipment Availability Factor (EAF) %

HY FOF HY EAF

GENERATION & GWAP1

• 1. GWAP is the Generation Weighted Average Price (or the price received for generation).

• 1

2 3 4 5 6 7 8 9 10

• 20

40 60 80 100 120 140 160 180 200 July August September October November December Weekly GWh & Average Spot Price ($/MWh Rankines Rankine Swaptions Spot Price GNE Gross Margin*

Unit 5 and Tekapo outages limit gross margin, high Kupe production, Rankines on, and hydro generation sustained HY18 RESULT PRESENTATION 23

Wholesale market performance

— consistent results in a volatile market

GENERATION & WHOLESALE PERFORMANCE HY18 Swaption demand limits long volume at high price period Deferred hydro generation realised, low swaption demand and profitable hedges sold in July Gross margin maintained in low demand period by buying hedges rather than running Rankines.

* Gross margin is represented by shape only

HY18 RESULT PRESENTATION 24

Rankine units supporting market during dry months

— 90% of Rankine output in 2017 was bought by other retailers & spot customers

• 50

100 150 200 250 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 GWh Genesis customers Other retailers/spot customers Swaptions

RANKINE OUTPUT

$0 $20 $40 $60 $80 $100 $120 50 100 150 200 250 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 $/MWh MW Trading Period Rankine MW Rangipo MW NI Price

• GWAP/TWAP1 ratio lift is driven by plant

availability, water values, flexible fuel, spot trading and hedging tactics

• 7% improvement in ratio in past year -

c4% due to favourable market conditions, but c3% due to decisions driven by strategic priorities

• Portfolio with no wind or geothermal

gives us price responsive plant with control over dispatch of generation

• Each portfolio GWAP/TWAP per cent

improvement is worth c$2 million in gross margin improvement per year

HY18 RESULT PRESENTATION 25

Strategic priorities help lift GWAP/TWAP ratios

— active trading decisions have driven $5-7 million of extra value in 2017

SECTOR GWAP/TWAP RATIO PRICE RESPONSIVENESS VS BASE-LOAD PLANT

1.03 1.10 1.06 1.03 0.98 Genesis Historical Genesis 2017 Mercury 2017 Contact 2017 Meridian 2017

• 1. GWAP is the Generation Weighted Average Price (or the price received for

generation), and TWAP is the Time Weighted Average Price of a particular period.

HY18 RESULT PRESENTATION 26

Kupe segment highlights

— record production volumes due to acquired 15% and generation demand

BRENT CRUDE OIL PRICE USD/BBl

$20 $30 $40 $50 $60 $70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 mths to Dec16 12 mths to Dec17 1.5 2.0 2.5 3.0 3.5 4.0 4.5 30.0 40.0 50.0 60.0 70.0 80.0 90.0 FY14 FY15 FY16 FY17 YTD FY18

LPG (kt/TJ) Oil (bbl/TJ)

Oil Yield LPG Yield

OIL & LPG YIELDS GAS PRODUCTION (PJ) & PLANT UTILISATION (%)

3.5 3.5 3.4 3.8 6.1 HY14 HY15 HY16 HY17 HY18

GAS SALES VOLUME (PJ)

Gas production for Kupe plant up 8.2% on H1 FY17 Genesis oil sales up 64% to 241 kbbls on H1 FY17, LPG sales up 96% to 22.7 kt Genesis gas sales up 61% on H1 FY17 Oil spot price up 20% in 12 months to December 2017, average hedge price up 3% to USD59/bbl

23.0 24.3 24.0 24.3 13.2 75% 80% 85% 90% 95% 100%

• 5.00

10.00 15.00 20.00 25.00 30.00 FY14 FY15 FY16 FY17 YTD FY18

Environmental and social responsibility

— making a tangible difference for our people, our community and our shared natural resources

HY18 RESULT PRESENTATION 27

Gender mix

%

male

%

female

• f senior management including

Directors are female

%

Minding the Gap

• gender pay gap has dropped from

Commitment to being an inclusive and diverse employer

. % . %

provided with real time updates

• f their school’s solar electricity

generation

,

More than through Genesis’ partnership with curtain banks in Auckland, Wellington and Christchurch NZ families assisted in HY18 participated in Graeme Dingle Foundation Kiwi-can programmes in the calendar year ending December students at 12 schools supported in Whanganui, the Coromandel peninsula, Marlborough and Canterbury through an agreement with Green Growth Forests Ltd that serves to diversify Genesis’ carbon offset investments, whilst supporting the regeneration of native forest in New Zealand hectares

• f forest

Whio Bootcamp game was played meaning more people are learning about whio and why they are an indicator of healthy water times Genesis people Identify with more than , ethnicities

, ,

Iwi relationships in place alongside several hapu/runanga relationships within the rohe of the Company’s generation assets and offices, all of which are highly valued by Genesis.

to

children at 92 School-gen schools

A coal free electricity future

— Genesis believes in a coal free future

HY18 RESULT PRESENTATION 28

At Genesis we are taking steps to ensure New Zealand can move to an even more renewable future – we believe in a coal-free future for electricity generation in New Zealand.

• 4. Outlook

• To provide capital support for Genesis’ growth strategy, and provide

a cost effective way for shareholders to reinvest in Genesis’ growth strategy

• A discount of 2.5% will apply to the price, this may be amended for

future dividends

• Shareholders have the option of full, partial or no participation. If a

shareholder elects to participate they will remain in the plan at the same participation level until they elect to terminate or amend their participation rate

• The New Zealand government has committed to participate to the

extent required to retain its 51% holding

• Genesis has the right to terminate or suspend the plan at any time
• Details of the plan will be sent to shareholders in early March

HY18 RESULT PRESENTATION 30

Dividend reinvestment plan

— to be introduced for the HY18 dividend to support growth

DRP Details Discount 2.5% Dividend amount 8.3 cpu Price The volume weighted average sale price over a period of five Business Days starting on the “Ex Date”, less the discount Key Dates Ex dividend date 5 April 2018 Final date to elect to participate 6 April 2018 Record date 6 April 2018 Payment and share issue date 20 April 2016

HY18 RESULT PRESENTATION 31

Market fundamentals outlook

— continue to be supportive

• Electricity demand growth of 1% in 2017 with EV penetration accelerating
• Total NZ gas demand down due to industrial however retail growth continues with

connections up over 15,500 in past five years

• LPG demand growth remains strong, with 6% growth in market over last 12 months

Customer Wholesale Kupe

• Forward electricity prices more reflective of tightening supply/demand dynamics. Year 2

price is up $4MWh (5%) on prior comparable period

• Tiwai Point Aluminum Smelter economics stable with a more positive outlook
• Forward carbon prices up to $24 per tonne in 2020
• Brent crude up 20% in 2017 with consensus outlook for 2018 in the range of US$59 to $62/bbl
• LPG supply/demand balance tightening with a possible move to net import early 2020’s

HY18 RESULT PRESENTATION 32

FY18 outlook

— guidance refined to $350 to $360 million

• A positive start to FY18, more challenging conditions in the second half

– $12 million FY18 impact of Tekapo B outage (largely weighted to second half), some benefit to be realised in FY19 – First half had significant North Island inflows – Kupe production contracts favour first half result – Increase in emissions costs in line with change in ETS obligations

• FY18 EBITDAF updated guidance range of $350 to $360 million subject to hydrological conditions, any material

events, one-off expenses or other unforeseeable circumstances

• FY18 capital expenditure guidance is up to $75 million including an early Tekapo B G3 upgrade, bringing forward

third party LPG distributor exit with associated depot builds and Phase 2 expenditure at Kupe

Appendices

Balance Sheet HY18 ($m) FY17 ($m) Variance Cash and Cash Equivalents 40.6 27.8 Other Current Assets 309.5 344.5 Non-Current Assets 3,770.3 3,847.0 Total Assets 4,120.4 4,219.3

• 2.3%

Total Borrowings 1,229.1 1,259.8 Other Liabilities 978.4 977.6 Total Equity 1,912.9 1,981.9

• 3.5%

Adjusted Net Debt 1,163.3 1,211.5

• 4.0%

Gearing 39.1% 38.9% EBITDAF Interest Cover 6.9x 6.6x Net Debt/EBITDAF 3.0x 3.3x Income Statement HY18 ($m) HY17 ($m) Variance Revenue 1,214.5 965.3 +25.8% Total Operating Expenses (1,015.0) (809.6) +25.4% EBITDAF 199.5 155.7 +28.1% Depreciation, Depletion & Amortisation (103.5) (73.6) Impairment of Non-Current Assets

• (0.8)

Fair Value Change (19.7) 1.9 Other Gains (Losses) 0.9 (1.6) Earnings Before Interest & Tax 77.2 81.6

• 5.4%

Interest (37.4) (28.7) Tax (11.4) (15.5) Net Profit After Tax 28.4 37.4

• 24.0%

Earnings Per Share (cps) 2.84 3.74

• 24.1%

Stay in Business Capital Expenditure 21.6 16.8 +28.6% Free Cash Flow 129.1 94.6 +36.5% Dividends Per Share (cps) 8.3 8.2 +1.2% Dividends Declared as a % of FCF 64.3% 86.7% Cash Flow Summary HY18 ($m) HY17 ($m) Variance ($m) Net Operating Cash Flow 198.4 126.5 Net Investing Cash Flow (30.7) (29.8) Net Financing Cash Flow (155.4) 78.1 Net Increase (Decrease) in Cash 12.8 174.8

• 92.7%

HY18 RESULT PRESENTATION 34

Financial statements

Income Statement HY18 ($m) HY17 ($m) EBITDAF 199.5 155.7 Depreciation, Depletion & Amortisation (103.5) (73.6) Impairment of Non-Current Assets

• (0.8)

Change in Fair Value of Financial Instruments (19.7) 1.9 Other Gains (Losses) 0.9 (1.6) Profit Before Net Finance Expense and Income Tax 77.2 81.6 Finance Revenue 0.4 0.9 Finance Expense (37.8) (29.6) Profit Before Income Tax 39.8 52.9 Income Tax Expense (11.4) (15.5) Net Profit After Tax 28.4 37.4

• EBITDAF is a non-GAAP item but is used as a key

metric by management to monitor performance at a business segment and group level

• Genesis Energy believes that reporting EBITDAF

assists stakeholders and investors in understanding the Company’s operational performance

• In HY18 EBITDAF was up 28% on HY17
• HY17 Net Profit After Tax is down 24%, materially

affected by change in fair value of financial instruments

HY18 RESULT PRESENTATION 35

Reconciliation of EBITDAF to NPAT

HY18 RESULT PRESENTATION 36

Underlying earnings

Underlying Earnings HY18 ($m) HY17 ($m) Net Profit After Tax 28.4 37.4 Business acquisition costs

• 0.8

Change in fair value of financial instruments 19.7 (1.9) Impairment of non-current assets

• 0.8

Underlying Net Profit Before Tax 48.1 37.1 Tax expense on adjustments (5.5) 0.3 Underlying Earnings 42.6 37.4

• Underlying Earnings is a non-GAAP item but is used

as a key metric by management to assess underlying performance by adjusting for items outside managements control or items that relate to strategic rather than operational actions

• Genesis Energy believes that reporting underlying

earnings assists stakeholders and investors in understanding the Company’s operational performance

• In HY18 underlying earnings were up 14% on HY17

Debt Information HY18 ($m) FY17 ($m) Variance ($m) Total Debt $ 1,229.1 1,259.8 Cash and Cash Equivalents $ 40.6 27.8 Headline Net Debt $ 1,188.5 1,232.0

• 3.5%

USPP FX and FV Adjustments $ 25.2 20.5 Adjusted Net Debt1 $ 1,163.3 1,211.5

• 4.0%

Headline Gearing 39.1% 38.9% +0.2ppts Adjusted Gearing 38.6% 38.5% +0.1ppts Covenant Gearing 32.3% 32.3% Flat Net Debt/EBITDAF2 3.0x 3.3x Interest Cover 6.9x 6.6x Average Interest Rate 5.8% 6.0% Average Debt Tenure 11.0 yrs 11.4 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 2. EBITDAF is based on the midpoint of the guidance range provided for FY18

GENESIS ENERGY DEBT PROFILE HY18 RESULT PRESENTATION 37

Debt information

$0 $50 $100 $150 $200 $250 $300 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2042 FY 2047 $m Retailable Bonds Wholesale Domestic Drawn Bank Undrawn Bank Capital Bonds USPP

Customer Key Information HY18 HY17 Variance EBITDAF ($ millions) 57.2 62.7 (8.8%) Netback $80.80 $82.14 (1.6%) Electricity Only Customers 342,500 NA Gas Only Customers 18,111 NA LPG Only Customers 32,991 NA Customers with > 1 Fuel 109,734 NA Total Customers 503,336 NA Total Electricity and Gas ICP’s 607,279 621,917 (2.4%) Volume Weighted Average Electricity Selling Price – Resi ($/MWh) 248.52 247.66 +0.3% Volume Weighted Average Electricity Selling Price – SME ($/MWh) 216.03 213.55 +1.2% Volume Weighted Average Electricity Selling Price – C&I ($/MWh) 120.45 117.12 +2.8% Volume Weighted Average Gas Selling Price ($/GJ) 25.59 25.43 +0.6% Customer Electricity Sales (GWh) 3,008 2,916 +3.3% Customer Gas Sales (PJ) 4.0 4.3 (7.1%) Customer LPG Sales (tonnes) 18,251 2,570 +610.2% Wholesale Key Information HY18 HY17 Variance EBITDAF ($ millions) 106.4 82.8 +28.5% Renewable Generation (GWh) 1,697 1,625 +4.5% Thermal Generation (GWh) 2,173 1,485 +46.3% Total Generation (GWh) 3,870 3,110 +24.5% GWAP ($/MWh) 96.16 53.36 +80.2% LWAP/GWAP Ratio 103% 100% +3 ppts Weighted Average Fuel Cost ($/MWh) 35.72 30.04 +16.8% Coal/Gas Mix (Rankines only) 63/27 30/70 Kupe Key Information HY18 HY17 Variance EBITDAF ($m) 55.7 31.9 +74.6% Gas Sales (PJ) 6.1 3.8 +60.5% Oil Production (kbbl) 277.8 195.8 +41.9% Oil Sales (kbbl) 241.0 146.8 +64.2% LPG Sales (PJ) 22.7 11.5 +96.3% Average Brent Crude Oil (USD/bbl) 57 48 +19.1% Average Hedged Price (USD/bbl) 59 57 +3.3%

HY18 RESULT PRESENTATION 38

Operational highlights