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Singapore Electricity Roundtable29th October 2013

Mike Fuge

Chief Operating Officer Genesis Energy

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‘Staying Ahead in a full retail competition environment’ or…….

The Rise and Rise of the Customer

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Traditional Approach

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Saturation of Generation

Over-supply of generation

Genesis Energy investing in maintenance

Keep assets in competitive market

Generation no longer the only success driver

Customer preferences driving results

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The Customer in the Energy Sector

A customer focus provides opportunity to create value – for themselves –and the Company

Instead of talking about “consumers”, we talk about “customers”

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The Rise and Rise of the Customer

Getting closer to customers is essential

Post-purchaserelationshipsare important

Customersolutions are desired

Customersresearch for what they want

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Fight on Price

Historical competitionon price

Improvechoice and control

16% customerchurn in the energy market, and leading retailer position

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The Customer Experience

Honesty about our business

Deliver value that benefits us and our customer

Look for ways to grow value for all

Lower costs to serve deliver value

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Customer Segmentation

680,000 customers

Many different groups of customers

Not all customers are the same

Match wishes of customers to offerings and services

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Internal Changes

More relevant personal service

Changing language and motivation

Tailoring our service, and respect for the customer

Customer experience is key

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Research and Understanding

Learn from our customers

Ask and listen to answers

Learn toengage

Long way to go

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Advanced Energy Neighbourhood

15 households in Tomorrow Street neighbourhood

18% monthly energy saving

Trials of new technology to see what works best and how, with high engagement model

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Four Stage Programme

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Platform – Advanced Metering

First Stage Advanced Meters

320,000 Advanced Meters installed

Meter serves as “portal” to the customer and the means of interaction

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Advanced Metering

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Where the resulshowed uinterna

Where the resulshowed uinterna

• Pricing corrections • Reduced call volumes• Reduced Filed service costs• Reduced Bad debt write off’s‐quicker disco• Reduced vacant consumption• Revenue Assurance• Value added products• Contractor safety

How our customeenjoy the benef

How our customeenjoy the benefAccurate Bill on demand

No final meter‐reading : No access issues

Energy Usage Info

Smartphone App

Multi‐rate tariff

Where the WORwent 

Where the WORwent 

• 323,000 meters deployed (74%  for GE)

Schedules ReadsMonthly 

Schedules Reads EOM Reads On Demand Reads

Discon/ReconRemote 

Discon/Recon Half hour Data

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Provide Information

Second Stage Information

All Genesis Energy customers with Advanced Meters have access to data free of charge

Can plot data on monthly, weekly, daily or hourly basis

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Provide Incentive – Multi-rate Tariffs

Third Stage Financial Incentive

Trials in Orion and Waitemata networks

3 rates for time of use of power

203 customers in the 12 month Waitemata trial

3 moved to another supplier

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Provide – New Tools

Fourth StageNew Tools

Smart phone apps

Energy alerts

Other devicessuch as home management

19October 30, 2013

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Growth Retention

Regional focus Quality

Trend (G.E. churn)

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10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Jan‐12

Feb‐12

Mar‐12

Apr‐12

May‐12

Jun‐12

Jul‐1

2Au

g‐12

Sep‐12

Oct‐12

Nov

‐12

Dec‐12

Jan‐13

Feb‐13

Mar‐13

Apr‐13

South Island Electricity consumer numbersChristchurch Dunedin South Island Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Door to Door Telemarketing Inbound sales GE website

2013 Acquisition Mosaic Desirabilty by ChannelFavourable Unfavourable GE Base Favourable

Retail Overview

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Growth Strategy

June 2013

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How

 we will grow

RETAIN & GROW BALANCE

Corporate/Industrials & Inter‐generator

Demand Growth : Revenue : Top‐lineUtilised to balance the portfolio by selecting the highest value opportunities

High Profitability

High Opp

ortunity

RETAIN & GROW HARD

SMEBoth Demand & Market Share GrowthHigh profitability and relatively ease of access to the market with comparably lower competitor activities

High Profitability

High Opp

ortunity

High Profitability

High Opp

ortunity

RETAIN & GROW SMART 

ResidentialMarket Share Growth : Profit : Bottom‐lineStagnated overall for both Energy demand and Customer numbers. Targeted retention and acquisition needed through regional and product variation strategy

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A Reliable Foundation

$105mNPAT forFY 2013

EBITDAF of$332m

Paidshareholder $110m dividend

Stable and Flexible Assets

ProductInnovation Partnerships Customer

Experience

Consistent Earnings

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The Rise and Rise of the Customer