Energy Action Limited · ASX:EAX
Energy Action — Investor Presentation (June 2016)
44 slides from Energy Action's investor presentation, Jun 8, 2016
Slide 1: ASX/Media Release
ASX/Media Release For immediate release 8 June 2016 Energy Action ready to capitalise on energy market macro trends and appoints Mathews George as Chief Information Officer New strategic plan launched to capitalise on Energy Market Macro trends, Microgrids, Big Data and NABERS Core solutions enh
Slide 2: Appointment of Chief Information Officer Mathews George
Appointment of Chief Information Officer Mathews George Energy Action is pleased to announce the appointment of Mr Mathews George as the Company’s inaugural CIO. Mr George has extensive IT experience, commencing his career with Oracle Financial Services. His most recent executive role was as CIO for
Slide 3: Investor Presentation Strategy Update
Investor Presentation Strategy Update Scott Wooldridge CEO Michael Fahey CFO 8th June 2016 1
Slide 4: Energy Action is Investing for Growth
Energy Action is Investing for Growth We have We have addressed We are now ready to transitioned from a the challenges invest in growth Procurement around integrating opportunities Specialist to a acquisitions presented by the leading Energy dynamic energy Management market Technology and Services p
Slide 5: Agenda
Agenda 1. Snapshot of Energy Action 2. Our Vision 3. Market Dynamics 4. Our Strategy 5. Conclusion 3
Slide 6: We are Australia's leading energy management technology and services company
We are Australia’s leading energy management technology and services company > Created the market for online reverse auctions for electricity – settled approximately $7 billion worth of electricity contracts since 2009 and provide the only market index for retail energy rates, the Energy Action Pric
Slide 7: Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle
Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle 5
Slide 8: Energy Action position in the Energy Market
Energy Action position in the Energy Market > Energy Action manages the complexity of the generation, transmission, distribution and retail participants in the Australian energy markets on behalf of our clients > Energy Action delivers significant measurable cost savings for our clients > Energy Act
Slide 9: Consistent Revenue Growth
Consistent Revenue Growth Revenue $m 32.1 25.8 22.2 17.4 14.0 7.8 10.3 FY09 FY10 FY11 FY12 FY13 FY14 FY15 > Revenue growth of CAGR 26.6% since FY09, boosted by the acquisitions of Ward Consulting, Exergy & Energy Advice. > FY16 Forecast NPAT range of $3.4m to $3.9m versus $2.6m in FY15. 7
Slide 10: Our Vision
Our Vision 8
Slide 11: Our Purpose
Our Purpose Develop and deliver innovative solutions for the energy challenges of our time for our clients and the planet 9
Slide 12: Our Premise
Our Premise > Energy Action is the lifecycle energy management partner of our clients, no matter how small or big > Energy Action provides its clients with a clear competitive advantage in managing their energy risks and opportunities > The energy market is dynamic, the company with the best data an
Slide 13: Market Dynamics
Market Dynamics 11
Slide 14: Consultant and Broker penetration estimated at >65%
Consultant and Broker penetration estimated at >65% Source: umi utility market intelligence 2016 survey results > The proportion of clients contracting directly with brokers and consultants continues to rise > The remaining 19% not using a broker or purchasing direct utilise buying groups, industry
Slide 15: Clients have access to more choices for Contract Management
Clients have access to more choices for Contract Management Organisations who Small Brokers offer with Bill Software Metering Agents Energy Retailers comprehensive Validation and Vendors With portals with portals Contract energy (SAAS) Management reporting offer Solutions 75-150 organisations 13
Slide 16: Grid Supplied Energy Prices are Rising
Grid Supplied Energy Prices are Rising 14
Slide 17: Three Macro trends that will drive the Australian Energy Industry
Three Macro trends that will drive the Australian Energy Industry 15
Slide 18: The rise of Microgrids
The rise of Microgrids > Between 25% and 45% of all generation will occur from localised Microgrid solutions by 2050 Australian Energy Networks Association 2015 > Over 50% of Australian Shopping Centres currently operate an 16 embedded network
Slide 19: Big Data – Digitisation for the Energy Community
Big Data – Digitisation for the Energy Community > Energy Utilities lag most other industries in their adoption of digitisation to engage clients > The advent of smart meters is increasing the access to daily energy consumption and cost data: > 110,000 premises deployed in 2005 SAP digital experienc
Slide 20: Energy efficiency ratings directly impacting commercial property valuations
Energy efficiency ratings directly impacting commercial property valuations > Australia leads the world in Energy Efficiency ratings schemes > Prime ratings scheme is NABERS > National Australian Built Environment Rating System > Direct correlation between property ratings and the total investment r
Slide 21: Our Strategy
Our Strategy 19
Slide 22: Our Strategy
Our Strategy Extending Core Capitalise on Macro Solutions Reach Industry Trend Client Segmentation & tailored offerings Revamping Contract Management Offers Enhanced Product Management Accelerated Channel Partner Programs 20
Slide 23: Extending Core Solutions Reach
Extending Core Solutions Reach 21
Slide 24: Client Segmentation & tailored offerings
Client Segmentation & iite Lead Offers tailored offerings Bureau Services Structured Products >$10,000,000 Corporate Sales Energy Audits and NABERS ratings 20,000 sites Turnkey building upgrade design and implementation Embedded Networks $1,000,0000 Auction/Tenders $10,000,000 Energy Metrics 15,00
Slide 25: Revamping Contract Management Offers
Revamping Contract Management Offers > Creating a logical suite of Contract Management solutions to integrate current offers and address market demands, allowing a multitiered service delivery and pricing strategy Integrated Procurement and Contract Management Service offered under a single monthly
Slide 26: Revamping Contract Management Offers: Launch of Energy Metrics Platinum
Revamping Contract Management Offers > Launch of Energy Metrics Platinum > Access to realtime cost and consumption data 24
Slide 27: Enhanced Product Management and Accelerated Channel Partner Programs
Enhanced Product Accelerated Channel Management Partner Programs • Market share in 3 of the top 6 C & I segments is >15% Targeted industry and low single digit market share in the remainder • Targeted Marketing and Sales investments to address the segments 3 underserviced segments • Investment in fo
Slide 28: Macro Industry Trend: Microgrids
ow at EnergyAction Macro Industry Trend Microgrids
Slide 29: Microgrids
Microgrids > A microgrid is a smallscale power grid of that can operate independently or in conjunction with the area's main electrical grid. > Typical features include: > A combination of local and grid based energy supplies > Locally managed tenant metering > Locally managed tenant billing 27
Slide 30: Microgrids: Tenant Metering, Monitoring and Billing Solutions
Microgrids Tenant Metering, Monitoring and Billing Solutions > Charterhall Shopping Centre Portfolio > System Design > Electricity Procurement > Reporting and Compliancy > Managing tenant metering and billing > Solar Feasibility 28
Slide 31: Microgrids: Onsite Generation
Microgrids Onsite Generation 50 Marcus Clarke • The primary objective of CIMB TrustCapital is to establish Funds outside of Malaysia that generate attractive riskadjusted returns from a high quality portfolio of real estate assets. Results of the partnership: • Commissioning 100kW solar system. • .
Slide 32: Macro Industry Trend: NABERS
Macro Industry Trend NABERS
Slide 33: NABERS: National Australian Built Environment Rating System
NABERS National Australian Built Environment Rating System > NABERS is a 6 star Energy Efficiency rating scale used in: – Office Buildings – Shopping Centres – Hotels – Data Centres > 72% of Australian office space is rated using NABERS > Government tenants require a minimum 4.5 star rating > A high
Slide 34: NABERS: Commercial Buildings Rated in Australia
NABERS Commercial Buildings Rated in Australia 50% of rated buildings are below 4.5 stars Source: OEH NSW annual report 2015 32
Slide 35: NABERS: Commercial Building Upgrades
NABERS Commercial Building Upgrades 44 Market St Refurbishment > 28,000m² A Grade Building, 2 Stars NABERS > Upgrade: > Modify central air handling plant > Upgrade controls > 50% energy reduction > Obtained 5 stars NABERS > 12 year energy payback > building repositioned in market > Includes endofl
Slide 36: NABERS: Expert Monitoring and Diagnostics Solution
NABERS Expert Monitoring and Diagnostics Solution > Commercial building software and services energy monitoring and diagnostics solution > Provides continuous NABERS benchmarking and building fault diagnostics > Provides an annual guarantee for a NABERS rating > Jointly developed with external softw
Slide 37: Macro Industry Trend
Macro Industry Trend
Slide 38: Big Data: Client Centric Information
Big Data Client Centric Information > The deployment of smart meters allows daily or 5 minute access to data feeds extending the C & I data access market from 110,000 premises to 800,000 premises > Extends reach of core Energy Action’s Procurement and Contract Management offers > Provides the platfo
Slide 39: Big Data: Structured Procurement Solutions
Big Data Structured Procurement Solutions > Access to wholesale market data and improved daily and near realtime data access offers alternate high value Procurement Service Offers > Structured Products allows clients to procure Energy in shorter term blocks tailored to their load profile > Common ap
Slide 40: Market potential
Market potential
Slide 41: Macro Industry Trends: Total Australian Market Potential
Macro Industry Trends Total Australian Market Potential • Designing, deploying and $150m to operating Commercial and Industrial Microgrids $250m per annum • Continuously monitor and $300m to tune buildings to maintain NABERS ratings and undertake $500m targeted commercial building upgrades per annum
Slide 42: Conclusions
Conclusions 41
Slide 43: Changes in the market are underway
Changes in the market are underway Positioning Energy Action to capitalise on these opportunities > Clients want more than a procurement service …and Energy Action can provide value across the energy management lifecycle > Energy production and consumption is changing rapidly > Growth in core busine
Slide 44: Connect with us
Connect with us Twitter: @EnergyActionAUS LinkedIn: www.linkedin.com/company/energyaction Email: info@energyaction.com.au Web: www.energyaction.com.au National number: 1300 553 551 Communications by Energy Action Limited and its related bodies corporate (Energy Action) are subject to the terms of E