Slide 1: Investor Briefing and Information Session Presentation Pack
03 September 2020 Energy One Limited (ASX : EOL) For personal use only Investor Briefing and Information session – 2PM (AEST) 3rd September 2020 Presentation Pack The Company has prepared the attached presentation for the investor briefing and information session at 2pm today. You can join that meet
Slide 2: Investor Update for FY20
Energy One Limited (ASX:EOL) For personal use only Investor Update for FY20 1
Slide 3: 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 4: Contents
Contents For personal use only About Energy One 4 Financial results summary 5 Operational review 8 Financial review 20 Company outlook 30 Appendices 37 3
Slide 5: Energy One SaaS company
• Energy One Limited (ASX:EOL) is a leading independent global supplier of Energy Trading and Risk Management (ETRM) For personal use only software systems. Energy One • We offer SaaS-based solutions for the a profitable trading of energy derivatives and the scheduling of physical energy (including
Slide 6: Financial results summary
Financial results summary For personal use only 30 June 19 30 June 20 Change Revenue $16,065,000 $20,604,000 28% Comparative EBITDA* $3,851,000 $4,718,000 23% EBITDA $3,851,000 $5,320,000 38% NPAT $1,309,000 $1,647,000 26% EPS diluted (cents) 6.15 7.30 19% NTA / share (cents) 14.83 39.73 168% Cash a
Slide 7: EPS & Revenue show strong CAGR
EPS & Revenue show strong CAGR For personal use only Over the last four years the Compound Annual Growth Rate (CAGR) in revenue has been 50% and in EPS it has been 41% 6
Slide 8: Annual Recurring Revenue is also growing at over 50% per annum
Annual Recurring Revenue is also growing at over 50% per annum For personal use only 7
Slide 9: Operational review
For personal use only Operational review 8
Slide 10: Sticky customer base
Sticky customer base… SaaS Metric July 19 July 20 For personal use only Average LTV per customer $1,449,506 $1,666,245 LTV/CAC 12.5 10.8 Customer-installs 143 203 Typical contract length 1-5 year initial term, then annual renewals Churn 3.8% 4.1% Gross margin 60% 59% • Gross LTV equivalent to $338M
Slide 11: Supplying chip companies in essential industries
Supplying Our customers are large: For personal use only • Utilities – such as power stations and large blue vertically integrated retailers • Infrastructure providers – such as gas pipelines, electricity transmission chip • Our customers supply an essential service, namely gas and electricity compa
Slide 12: Contigo and eZ-nergy are strategic acquisitions to expand our market
Contigo and eZ-nergy are strategic acquisitions to expand our market For personal use only With a strong position in the energy ETRM space in Australia, an off shore market like the U.K. and Europe provides an exciting expansion opportunity. The market size in UK/EU is more than 10x the size of the
Slide 13: Our European expansion plan validated
Our European expansion plan For personal use only validated… • In FY18 we starting building a presence in the UK and Europe • In FY20, some 44% of group revenue and 37% of EBITDA was generated in Europe, our growth market. • Over 200+ installations in 17 countries • We’re now one the largest indepen
Slide 14: eZ-nergy - a great acquisition
eZ-nergy - a great acquisition For personal use only Completed in June 2020. eZ was founded in 2013, with customers in 9 countries of the EU. Highly synergistic with Contigo. Joint product offerings for energy traders across UK & Europe. Acquisition price of $6.5M (including equity) over 18 months.
Slide 15: Integration of eZ-nergy now underway
Integration of eZ-nergy now underway For personal use only Energy One acquired eZ-nergy in June 2020. eZ-nergy is a French vendor of European energy trading software. • Operational integration with Contigo has commenced • Retained key staff (including founders) and capabilities • Technological and b
Slide 16: Well placed for European growth
Well placed for European growth… • Contigo based in the UK and eZ-nergy based in Paris For personal use only • Joint technology stack • Highly synergistic products that now provide a pan-European trading solution reaching across national market boundaries • With a platform utilizing new technology &
Slide 17: eZ and Contigo have already won their first major customer together
eZ and Contigo have already won For personal use only their first major customer together In August 2020 Contigo and eZ-Nergy combined their product offerings and as a result won their first major customer, a large iconic national utility company This customer was won via combination of UK and Frenc
Slide 18: The Australian business has remained strong
For personal use only The Australian business has remained strong • Australian comparative EBITDA increased 8% (headline EBITDA up 14%). • EBITDA margin of 29% • Recurring revenues were $8.8M or 79% of operating revenue • We added new customers and completed two large projects • Business is ready fo
Slide 19: We now have a business with global capability
We now have a business with For personal use only global capability 115 staff in 3 countries Customers in 17 Countries Global support 24/7 – follow-the-sun capability Pan-European trading platform Integrated operations Single back office infrastructure Global finance system Automated testing Joint d
Slide 20: EOL's suite of software tools manage risk and volatility
EOL’s suite of software tools are used by customers to manage For personal use only their exposure to risk and volatility Our software is used to trade and manage both physical energy and derivative contracts either bilaterally (B2B) or on public exchanges. 19
Slide 21: Financial review
For personal use only Financial review 20
Slide 22: 7th consecutive year of profitable growth
7th consecutive year of profitable For personal use only growth Revenue increased 28% to $21M Comparative EBITDA* increased 23% to $4.7M EBITDA increased 38% to $5.3M NPAT increased 26% to $1.65M Earnings per share up 19% to 7.3 cents/share (diluted) * Excludes one off changes relating to the adopti
Slide 23: Profit & loss statement
Profit & loss statement $’000 2018 2019 2020 Revenue 9,299 15,671 20,304 One month’ contribution from eZ For personal use only Other revenue 628 395 300 R&D grant changed to tax offset in FY20 as per scheme rules Direct project costs (257) (794) (1,452) Two large projects completed during the year E
Slide 24: EPS and dividends continue to grow
EPS and dividends continue to grow For personal use only Directors declared an unfranked dividend of 3.5 cents per share for FY20 The DRP will issue shares at $4.35. 23
Slide 25: Profit & loss improved despite one off acquisition costs
Profit & loss improved despite one off acquisition costs For personal use only Revenue increased by 28% with 44% of revenue now being generated from Europe Pleasingly the EBITDA margin remains steady despite the strong revenue growth Two one off items - Change to accounting standards relating to lea
Slide 26: European business grows
European business grows For personal use only • Successful Contigo integration • Added 8 new customers in FY20 • During its first full year, Contigo generated : • $8.7M in sales • $1.6M EBITDA (up 28% on acquisition forecasts) • eZ-nergy joined in June 2020 • One-month EBITDA contribution of $0.12M.
Slide 27: Balance sheet
Balance sheet $’000 2018 2019 2020 For personal use only Cash and cash equivalents 728 2,216 3,353 Trade and other receivables 1,829 4,600 3,944 98% of receivables <60 days aging Total Current Assets 2,733 7,289 8,150 Trade and other receivables 324 99 0 Plant and equipment 524 643 351 Software deve
Slide 28: The balance sheet has been strengthened
The balance sheet has been For personal use only strengthened Raised $4.4M equity for the eZ acquisition (April 20) Raised $1.815M equity via an oversubscribed SPP (June 20) to strengthen balance sheet and provide working capital to support growth. Bank debt was reduced from $5.4M to $0.6M ($4.45M a
Slide 29: Cash flows
Cash flows $’000 2018 2019 2020 For personal use only Receipts from customers 11,399 15,864 21,054 Government R&D incentives/grants 815 693 505 Research & Development Payments to suppliers and employees (9,035) (13,147) (16,516) Increase in line with revenue growth Interest 9 30 17 Cash provided by
Slide 30: Strong recurring cash flows from SaaS business model
Strong recurring For personal use only cash flows from SaaS business model Total receipts from customers increased 33% to $21.05M Recurring revenue of 77% across the group Recently acquired eZ-nergy has recurring revenues of +86% Operating cash flow increased 68% $5.06M 29
Slide 31: Company Outlook
For personal use only Company Outlook 30
Slide 32: FY21 guidance sees EBITDA increasing to $6.5M
FY21 guidance sees EBITDA For personal use only increasing to $6.5M 31
Slide 33: Future growth to come from Europe
Future growth to come from Europe For personal use only • Given our high market share in Australia, Europe will be the company’s growth engine going forward • Within two years 44% of our revenue is now being generated in Europe • In FY21 we expect European revenues to exceed 50% of group revenue • E
Slide 34: EOL is well positioned in Australia for the new 5 minute market
For personal use only That said EOL is well positioned in Australia for the new 5 minute market • Our software is ready for the new Australian market requirements (30/9/21) • We have $0.7M of contracted work for several upgrades going into FY21. More renewal work also expected later in FY21 and into
Slide 35: We will continue to execute our long-term strategy growing offshore
We will continue to execute our long-term strategy growing offshore For personal use only Diversification Grow customer base Invest in new products • 5min settlement Grow by acquisition Cross-sell products Geographic expansion • EOL products to • Expand into new Contigo customers Acquire complementa
Slide 36: FY21 will be a year of consolidation
FY21 will be a year of consolidation For personal use only Solid financial performance for the year past We plan to integrate the eZ-nergy acquisition during FY21. Focus on combining capabilities to provide pan- European trading system capability for both gas and electricity. Leverage our te
Slide 37: Contact details
For personal use only Mr Shaun Ankers - CEO and Managing Director Email: enquiries@energyone.com Level 13, 77 Pacific Highway North Sydney NSW 2060 +61 2 8916 2200 36
Slide 38: Appendix
Appendix Additional information For personal use only 43 37
Slide 39: The benefits of geographic, product and customer diversity
The benefits of geographic, product and customer diversity For personal use only Some software vendors selling to U.K. energy retailers have recently reported an increase in bad debts arising from corporate failures. Our customer base is diversified, both geographically, Europe, Australia as well as
Slide 40: Project revenue creates a very sticky SaaS customer base
Project revenue creates a very sticky SaaS customer base For personal use only • Unlike other SaaS providers Energy One has a larger proportion (~23%) of revenue project revenue. While is lowers overall gross margin, we consider it to be a positive • For large blue-chip customers our software is oft
Slide 41: Change in R&D tax incentives
Change in R&D tax incentives For personal use only In FY20 Group revenue exceeded $20M for the first time. As a result Energy One now receives a tax offset, as per Australia Tax Office (ATO) scheme rules, for R&D activities as opposed to a cash grant. In line with AASB 120, applicable tax legislatio
Slide 42: Many energy market participants use EOL software
Many energy market participants use EOL software For personal use only Electricity Exchange Traded Generators: Derivatives Energy - Solar farms Traded energy Consumers - Wind farms Spot Market (Domestic) - Hydro for Electricity Energy - Batteries Retailers/ - Coal fired - Gas fired OTC Contracts, PP
Slide 43: A comprehensive suite of software
A comprehensive suite of software For personal use only Physical Bidding ETRM Business Process Allows a power station to bid it’s Contract management for Automation electricity (quantity, price, time recording physical trades (PPA’s) and financial derivatives (Swaps, Many systems and contracts in an
Slide 44: EOL software makes life easier
EOL software makes life easier Participant Challenges faced EOL group products For personal use only Generators Accurate, compliant energy spot market bidding Efficiently dispatching generation during constrained network events Energy operations (B2B, bid preparation, monitoring, compliance) H