MARKET RELEASE Date: 9th December 2020 NZX: GNE / ASX: GNE GENESIS STAKEHOLDER DAY Genesis Energy Limited (Genesis) hosts its 2020 Stakeholder Day today to consider how we can empower New Zealand’s sustainable future. The presentation from the morning session is attached and is available on our Investor website, https://www.genesisenergy.co.nz/investors. A full recording of the session will be made available following the event, also on our Investor website. ENDS For media enquiries, please contact: Allan Swann Communications Manager Genesis Energy M: 027 211 4874 For investor relations enquiries, please contact: Tim McSweeney Investor Relations Manager Genesis Energy M: 027 200 5548 About Genesis Energy Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity, reticulated natural gas and LPG through its retail brands of Genesis and Energy Online and is New Zealand’s largest energy retailer with approximately 500,000 customers. The Company generates electricity from a diverse portfolio of thermal and renewable generation assets located in different parts of the country. Genesis also has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. Genesis had revenue of $NZ2.6bn during the 12 months ended 30 June 2020. More information can be found at www.genesisenergy.co.nz Genesis Stakeholder Day Future thinking discussion Empowering New Zealand’s sustainable future Haere mai Who we have in the room today 2% 11% 6% RSVPs received 6% 4% for the morning • 139 attending in person • 91 guests • 8 speakers • 20 Genesis 24% • 7 Media 28% • 39 attending online • 109 organisations represented 4% 15% RSVPs received for the afternoon Community Customer Government & Regulatory Investor • 39 in person, 8 online Media Supplier Partner Speaker Genesis Genesis Stakeholder Day 2020 3. Genesis Energy Board of Directors and Executive Team CHAIRMAN Barbara Chapman Catherine Drayton Doug McKay Tim Miles James Moulder Maury Leyland Penno Paul Zealand CNZM, BCom, CMInstD BCom, LLB, FCA ONZM, BA, AMP (Harvard) BA BA, BCA BE (Hons), FEng, CMInstD MBA, BSc Mech. Eng (Hons) CHIEF EXECUTIVE Chris Jewell James Magill Matthew Osborne Nicola Richardson Nigel Clark Shaun Goldsbury Tracey Hickman Marc England Chief Financial Officer Chief Digital Officer Chief Corporate Chief People Officer Chief Operations Officer Chief Trading Officer Chief Customer Officer MBA, MEng BE (Hons), MEM, CIMA BSc (Hons), Affairs Officer BA (Hons) BBus (Acc), BSc MA (Hons) Dip Corp Finance, BCom, LLB Dip Treasury Mgmt., MBA (Melbourne/Madrid) FCPA, FAICD, CFTP (Snr) 4 . 8 DECEMBER 2020 Genesis team here today Andre Gaylard Angus Judge Cameron Jardine Courtney Simpson Christopher Mirams David Gutteridge Emma-Kate Greer Fiona Turvey General Manager General Manager General Manager LPG Group Manager Group Manager General Manager Group Manager Employee Marketing Manager Future Generation Operational Excellence Sustainability Communications Residential Join Experience and Strategy and Media Jackie Shen James Ryan Kiely Evans Michaela Latimer Peter Kennedy Tara Parata Tim McSweeney Tim Rowe Executive Team Manager Group Manager Communications and Community Liaison General Manager, Head of Customer Care Manager - Investor Strategy Partner Strategy and Risk Engagement Manager Manager Growth and Innovation Relations Genesis Stakeholder Day 2020 5. An interactive discussion Dr Rod Carr Rod Oram Mike Burrell Kirsten Corson Chair of the Business journalist Executive Director of Co-founder and Executive Director Climate Change Commission and columnist the Sustainable Business Council of Zilch Graeme Milne Arizona Leger Nicole (Niki) Harré Shamubeel Eaqub Chairman of Youth climate leader Professor at Economist, financial analyst Synlait Milk Ltd The University of Auckland and author Genesis Stakeholder Day 2020 6. Empowering New Zealand’s sustainable future Manaaki whenua, manaaki tangata, haere whakamua Electricity contributes a small portion of New Zealand’s emissions but is vital to the transition Other Opportunity to decarbonise (incl. industrial) 26% process heat through electrification Electricity 5% Transport 21% Opportunity to decarbonise transport through electrification Agriculture 48% Gross carbon emissions New Zealand’s emissions 2018, MFE data Genesis Stakeholder Day 2020 8. Our 84% renewable electricity system is a unique opportunity to increase the only 40% renewable portion of total energy 9 . 8 DECEMBER 2020 We’re reducing our emissions while advocating for a reliable and affordable, highly renewable electricity system Genesis has a track record of reducing emissions despite a volatile output kt, CO2-e 7000 GENESIS’ HISTORICAL EMISSIONS annual equivalent 6000 5000 4000 3000 Monthly emissions 5 year average 2000 1000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Genesis Stakeholder Day 2020 11. We’re continuing emissions reductions by setting Science Based Targets consistent with limiting warming to 1.5°C 1 Reduce direct emissions Reduce indirect emissions Target Year : Scope 1 & 2 Scope 3 % % Reduce emissions2 by at least 1.2 million tonnes 1. Target is based on our FY20 as the base year. Reduction for 1.5°C Genesis ambition Remaining emissions 2. Combined scope 1, 2 & 3 Genesis Stakeholder Day 2020 12. Cheaper renewable electricity will actively displace baseload thermal GWh 6,775 6,775 6,775 Backup Thermal 1,507 1,312 1,312 850 2,200 Baseload Thermal 2,455 1,350 450 450 Hydro 2,813 2,813 2,813 Generation 5 Yr Average 2025 2030 Genesis Renewable Generation (circa) 42% 68% 81% Market Renewable Generation (circa) 83% 90% 93% Genesis Stakeholder Day 2020 13. Empowering a sustainable future will require strategic partnerships, alliances and collaboration through our supply chains Genesis Stakeholder Day 2020 14. We need more systems thinking and an energy strategy to ensure we navigate the fastest route to decarbonise Decarbonised economy Use electricity to decarbonise 100% renewable energy electricity Genesis Stakeholder Day 2020 15. Understanding the decarbonisation landscape Energy is one of the two major contributors to New Zealand’s emissions NEW ZEALAND’S EMISSIONS Annual 80,000 emissions Waste kt CO2-e 70,000 Industrial process and product use 60,000 50,000 Energy 40,000 30,000 Agriculture 20,000 10,000 0 -10,000 Land use, land-use change and forestry -20,000 -30,000 MFE data - 2018 Genesis Stakeholder Day 2020 17. Almost all energy use is either electricity, heat or transport 35,000 ENERGY EMISSIONS Annual emissions 30,000 Fugitive kt CO 2-e Electricity 25,000 Heat 20,000 15,000 10,000 Transport 5,000 - MFE and EECA data - 2018, Genesis analysis Genesis Stakeholder Day 2020 18. Energy emissions come from a range of activities, with solutions only available for some in the 2020-2030 decade ENERGY EMISSIONS Annual emissions 30,000 Fossil fuels – fugitive, processing and manufacture kt CO 2-e Electricity 25,000 Residential, commercial and agricultural 20,000 Industry Agricultural vehicles 15,000 Transport (other) 10,000 5,000 Transport (cars) 0 MFE data, 2018 Genesis Stakeholder Day 2020 19. Electricity 20. New Zealand’s Energy Trilemma EMISSIONS RELIABILITY COSTS SECURITY HAS A PRICE Genesis Stakeholder Day 2020 21. Electricity is decarbonising with falling wind and solar costs providing tail winds for further progress RENEWABLE ELECTRICITY RENEWABLE ELECTRICITY COSTS SHARE - NEW ZEALAND IN THE USA 60 90% 50 85% / MWhUSD 40 80% 30 75% 70% Quarterly 20 5-year rolling average 65% 10 60% 0 2010 2012 2014 2016 2018 2020 2016 2017 2018 2019 2020 Solar Utility Costs Wind Utility costs MBIE data Lazard data Genesis Stakeholder Day 2020 22. Seasonal demand is a challenge for our electricity system, demand is highest in winter when southern inflows are the lowest SEASONAL STORAGE CHALLENGE 4,000 400 3,500 350 3,000 300 2,500 250 2,000 200 1,500 150 Monthly Totals (GWh) Totals Monthly 1,000 100 Solar Monthly Total (GWh) Total SolarMonthly 500 50 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec South Island Inflow National Demand Solar Generation (per 1000MW Installed) Genesis Stakeholder Day 2020 23. Our hydro storage is too small to manage droughts and seasonality Even with 4x the relative storage, Norway still only 98% renewable NORWAY HYDRO BY TWH NEW ZEALAND HYDRO BY TWH 140 30 120 25 100 20 80 15 NZ x 5 60 10 40 5 20 0 Annual Generation Wet/Dry Variation Storage 0 Annual Generation Wet/Dry Variation Storage NZ has 2 months hydro storage (84% renewable) Norway has 8 months hydro storage (98% renewable) Genesis Stakeholder Day 2020 24. Deep energy storage is a big challenge, there are limited options available to store 3,000 GWh of energy m % Genesis Stakeholder Day 2020 25. Electricity is decarbonising, but the last few percent will be challenging 2030 MARGINAL ABATEMENT COST CURVE 500 ) e - 400 2 300 200 Abatement cost (NZ$ / tCO (NZ$ cost Abatement 100 0 0 1000 2000 3000 4000 5000 6000 Abatement potential (kt CO2-e / year) Baseload thernal Flexible thermal Geothermal MFE data Genesis Stakeholder Day 2020 26. Transport 27. Cars are the largest decarbonisation opportunity from the transport sector TRANSPORT EMISSIONS, NZ 2019 e - 2 10,000 CO kt 8,000 6,000 Annualemissions International 4,000 2,000 0 Buses Cars Road Freight Rail Shipping Air EECA / MBIE data, Genesis analysis Genesis Stakeholder Day 2020 28. Low energy costs help, but high upfront costs are a barrier for electric vehicle adoption 10 YEAR TOTAL COST OF OWNERSHIP* $80,000 Average weekly electricity for an EV costs about the same as 2 coffees $60,000 Capital and cost of Capital and ownership cost of $40,000 ownership Maintenance $20,000 Energy costs Maintenance $- Energy costs Hyundai PetrolKONA - Petrol HyundaiElectric KONA - EV *Hyundai Kona, ~21,000 km/year over 10 year terms, as at 2020 https://www.eecabusiness.govt.nz/tools/vehicle-total-cost-of-ownership-tool/ Genesis Stakeholder Day 2020 29.