Just Energy Unveils Strategic Plan and Financial Targets at Investor Day
Key Event Highlights
- Healthy core services business will support expansion into high-growth, high-margin opportunities in the Company’s evolving product offering;
- Value-added products and services allow
Just Energyaccess into regulated markets representing approximately eight times the sales opportunity of its existing markets and are expected to meaningfully contribute to Base EBITDA;
- Plans will be unveiled to replicate Just Energy’s retail channel success as it pursues authorized agent and joint marketing channel opportunities;
- Overview of the Company’s insight and case study examples of its industry-leading risk management capability; and,
- Reaffirmed fiscal 2019 guidance while also providing specific cost containment actions and financial targets on an expanded set of key performance metrics.
“These are exciting times for
“At our Investor Day, we will detail significant customer growth opportunities as we extend our reach into regulated markets in jurisdictions previously unavailable to
Just Energy’s senior leadership team will outline a strategic plan in which the Company will focus on building from its 1.7 million customers and healthy core business through a growing suite of value-added products and services.
- The Company’s chief operating officer,
James Pickren, will outline the Company’s unique consumer-driven approach that the Company believes provides a compelling value proposition centered around comfort, convenience and control for customers. He will also define significant high-growth opportunities that are expected to drive gross margin growth in Just Energy’s current markets, as well as in the Company’s recent entry into regulated markets.
- The Company’s chief sales officer,
Morgan Smith, will highlight the Company’s ability to manage its diverse channel mix to increase the addressable audience while underscoring the competitive advantages of Just Energy’s international reach, innovative home products, the speed to market and the network of industry experts to streamline operations.
- The Company’s chief risk officer,
Amir Andani, will detail the Company’s ability to identify and minimize performance risks related to managing commodity, volume and weather in order to drive stable, predictable results in the face of dynamic external circumstances.
- The Company’s chief financial officer,
Jim Brown, will address the Company’s financial health, including the approximate $2.2 billionof current embedded gross margin in the existing Just Energybook of business, in addition to providing near- and long-term financial targets.
As the result of executing the Company’s strategic priorities, the Company anticipates that it will deliver measurable performance improvements, including:
- Customer Growth: 10% or more of annual growth
- Gross Margin per RCE: Achieve
$300for Residential and $100for Commercial
- Cost Savings:
$20 millionor more of annual savings; run-rate achieved year one
- Base EBITDA: 10% five-year CAGR
- Payout Ratio: Maintained at less than 75% over the period
- Debt to EBITDA: Less than 2.0x
An archived replay of the webcast for Just Energy Group’s Investor Day can be accessed at the Company’s investor relations website.
This press release may contain forward-looking statements, including without limitation, with respect to customer growth, margin per RCE, cost savings, EBITDA CAGR, payout ratio and debt to EBITDA ratio. These statements are based on current expectations and assumptions that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, general economic and market conditions, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes, results of litigation and decisions by regulatory authorities, competition and dependence on certain suppliers. Some assumptions or expectations may not materialize, and results, events and circumstances occurring subsequent to the date on which the information was prepared may be different from those assumed or expected or may be unanticipated, and thus may affect the forward-looking statements in a material manner.
These Forward-Looking Statements represent the Company’s views as of the date of this press release. Subsequent events and developments may cause the Company’s views to change. The Company does not undertake to update any forward-looking statements, either written or oral, that may be made from time to time by or on behalf of the Company, subsequent to this date, except as required by law.
Additional information on these and other factors that could affect
Established in 1997,
The financial measure such as “EBITDA”, Base EBITDA, FFO, Payout Ratio and Embedded Gross Margin do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. This financial measure should not be considered as an alternative to, or more meaningful than, net income (loss), cash flow from operating activities and other measures of financial performance as determined in accordance with IFRS, but the Company believes that this measure is useful in providing relative operational profitability of the Company’s business. Please refer to “Key Terms” in the Company’s management’s discussion and analysis of financial condition and results of operations of the Corporation for the three months ended
FOR FURTHER INFORMATION, PLEASE CONTACT:
Chief Financial Officer
Source: Just Energy Group Inc.