Energy One Limited · ASX:EOL
Energy One — Investor Presentation (October 2016)
29 slides from Energy One's investor presentation, Oct 13, 2016
Slide 1: Investor Presentation
For personal use only Investor Presentation 1
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by Energy One Limited (EOL) and comprises written materials and slides for a presentation concerning EOL. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, se
Slide 3: Contents
Contents For personal use only Operational review 4 Financial review 11 Outlook 21 Presenters: Shaun Ankers Managing Director Richard Standen Chief Financial Officer 3
Slide 4: Operational review
For personal use only Operational review 4
Slide 5: Energy One's growth strategy
Energy One’s growth strategy For personal use only Diversification Grow customer base Invest in new products Grow by acquisition Develop value-added Offer a single-vendor services solution Migrate customers to Geographic expansion newer versions Acquire complementary Sell into other products/service
Slide 6: Good progress was made on implementing this strategy in FY16
Good progress was made on For personal use only implementing this strategy in FY16 1) Diversification • pypIT acquisition - EOL’s software now manages 40% of Australia’s gas transmission. • Places EOL at the centre of the gas market, offers new sales opportunities to new customer segment (gas shippe
Slide 7: EOL software provides solutions across the energy trading spectrum
EOL software provides solutions across the energy trading spectrum For personal use only EnergyOffer EnergyOne EnergyFlow pypIT Trading Physical Energy trading & Business process Gas dispatch risk management automation scheduling With dashboards, analytics and business intelligence overlay Serving t
Slide 8: EOL's software dispatches 35% of physical electricity in the NEM
EOL’s software For personal use only is responsible for dispatching 35% of the physical electricity in the NEM and managing >30% of the derivatives market 8
Slide 9: Software schedules transport of 40% of domestic gas in Australia
And our software is responsible for For personal use only scheduling the transport of 40% of the domestic gas in Australia 9
Slide 10: Dominant market position in gas and electricity trading software
This gives Energy One a For personal use only dominant market position in both gas and electricity trading software 10
Slide 11: Financial review
For personal use only Financial review 11
Slide 12: Financial results summary
Financial results summary For personal use only 30 June 16 30 June 15 Change Revenue $5,167,000 $5,549,000 (7%) Recurring Revenue $2,699,000 $2,231,000 23% EBITDA $1,176,000 $1,359,000 (13%) NPBT $924,000 $837,000 9% NPAT $464,000 $687,000 (32%) NTA / share (cents) 12.4 13.2 (6%) Cash and equivalent
Slide 13: Third consecutive year of profit
Third consecutive For personal use only year of profit NPBT is up 9% despite flat revenue due to project timings. NPAT was down due to the Company utilizing the last of its prior year tax losses. With these prior tax losses fully utilised, the Company is now paying tax. Net tangible assets decreased
Slide 14: Profit & loss statement
Profit & loss statement For personal use only $’000 2013 2014 2015 2016 Revenue 1,844 2,848 4,768 4,583 Flat due to timing of projects Other revenue 601 606 782 584 R&D grant & interest Direct project related costs (30) (56) (33) (43) Employee benefits expense (1,459) (1,713) (3,003) (2,674) Reduced
Slide 15: Recurring revenue is up 23%
Recurring revenue is up 23% For personal use only 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2012 2013 2014 2015 2016 Extended licence revenue Annualised licence and support revenue Total recurring revenues • Total recurring revenues up 23% on FY15. • Recurring revenues now are 60%
Slide 16: Net profit before tax continues to increase
Net profit before tax continues to For personal use only increase 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2012 2013 2014 2015 2016 (200,000) (400,000) (600,000) (800,000) (1,000,000) 16
Slide 17: Balance sheet
Balance sheet For personal use only $’000 2013 2014 2015 2016 Cash and cash equivalents 1,721 1,398 1,983 2,228 FY16 cash balance is pre acquisition of pypIT Trade and other receivables 835 2,190 2,319 2,056 Total Current Assets 2,585 3,624 4,344 4,108 Plant and equipment 147 96 64 502 Relocation of
Slide 18: Net assets per share continue to increase
Net assets per share continue to For personal use only increase $0.30 $0.28 $0.26 $0.24 $0.22 $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 2012 2013 2014 2015 2016 18
Slide 19: Cash flows
Cash flows For personal use only $’000 2013 2014 2015 2016 Receipts from customers 2,190 2,063 4,920 5,072 Government grants 715 720 709 836 Research & Development Payments to suppliers and employees (2,434) (2,476) (4,260) (4,723) Interest 88 62 51 554 Cash provided by operating activities 559 369
Slide 20: The company continues to generate free cash from operations
The company continues to For personal use only generate free cash from operations 2,500,000 Cash and Cash Equivalents 2,000,000 1,500,000 1,000,000 500,000 2012 2013 2014 2015 2016 20
Slide 21: Company Outlook
For personal use only Company Outlook 21
Slide 22: Investing for growth opportunities
Investing for 1) Domestic sales: For personal use only Continue to develop additional growth opportunities. Projects pending and in development. 2) Explore other geographies EnergyFlow offers great flexibility and has strong potential in overseas energy markets so we will continue investing in marke
Slide 23: Growing the domestic market
Growing the domestic market For personal use only Interest in gas/oil trading rising More activity in gas/oil markets: • export LNG coming on-line (gas pegged to Oil indexes) • market rule changes and adjustments by regulators in Aus/NZ EOL has recently provided oil trading functionality for an exis
Slide 24: Off shore marketing has yielded positive feedback
Off shore marketing has yielded For personal use only positive feedback During FY16 we conducted market exploration in UK/EU. The feedback was positive so we will invest further to develop this opportunity Acquisition would be a preferred strategy to leverage an existing distribution channel. Ideal
Slide 25: Off shore marketing will require additional investment
Off shore marketing will require For personal use only additional investment To fully access the overseas opportunity we will need to make a material investment in the next 12-18 months. The size of investment will ultimately depend on the route to market. • Investment would include: • Technical res
Slide 26: Energy One well placed for growth in 2017
Energy One well placed for growth For personal use only in 2017 Solid financial performance for the year past Strong market position & good products Opportunities for domestic sales in FY17 Overseas opportunity to expand reach Further investment in product development Marketing domestica
Slide 27: Contact details
For personal use only Mr Shaun Ankers - CEO and Managing Director Email: enquiries@energyone.com.au Level 13, 77 Pacific Highway North Sydney NSW 2060 27
Slide 28: Appendix
Appendix Additional information For personal use only 28 28
Slide 29: Sales pipeline update
Sales pipeline update For personal use only • Software projects represent a large project for customers requiring significant planning, development and resourcing (This increases customer retention). • Sales cycle can be 1-5 years especially for ‘large’ projects (e.g. ~$1m, over 12- 18 month project