Slide 1: Financial Results Presentation for the year Ended 30 June 2014
For personal use only Financial Results Presentation for the year Ended 30 June 2014 Presented by Mr Scott Wooldridge Chief Executive Officer Energy Action Limited 1
Slide 2: Contents
Contents For personal use only 1. Business Overview 2. Financial Results 3. Operational Performance 4. Acquisition Update 5. Outlook 2
Slide 3: Business Overview
For personal use only 3 Business Overview
Slide 4: We are a leading energy management consultancy
We are a leading energy management consultancy For personal use only Created the market for online reverse auctions for electricity – settled approximately $7 billion worth of electricity contracts since 2009 Market leading energy management capabilities across procurement, monitoring and energy
Slide 5: Our Cause
Our Cause For personal use only “As the energy market experts, we are committed to bringing innovation to energy management, enabling our people to deliver positive environmental and financial outcomes for our clients through the best relationship management, analytics and data integrity, as we resp
Slide 6: Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle
Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle For personal use only 6
Slide 7: Our Strategy: Create a Unique Market Position
Our Strategy: Create a Unique Market Position Intelligence Business For personal use only Data Integrity & Completeness Fragmented Data One Off Trusted Engagement Actionable Customer Insight Partner 7
Slide 8: Strong Executive Team
Strong Executive Team For personal use only Scott Wooldridge CEO Paul Cooper Troy Davis Madeline Sedrak Sales Director General Manager IT Human Resources Manager Field Delivery Operations Paul Bannister Helge Sangkuhl Edward Hanna Projects & Advisory General Manager Strategy & Business Corporate Fun
Slide 9: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure 12mth Share Price Performance ASX Code EAX Share Price Volume ('000) Shares on Issue 25.8 million 1,000 Market Cap (June 30 2014) $81.3 million $4.00 800 Share Price 600 $2.95 ‐ $4.35 (52 week High/Low) $3.00 400 Cash at Bank (30 Jun 14) $4.
Slide 10: Consistent Revenue Growth
Consistent Revenue Growth For personal use only Revenue and Operating NPAT Margin EBITDA Margin 23% 23% 22% 21% 35.2% 20% 33.7% 32.3% 30.2% 30.7% 17% 24.3% 25.8 25.8 22.2 22.2 17.4 17.4 14.0 14.0 10.3 10.3 7.8 7.8 FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 Revenue $m (LHS) Operating
Slide 11: Future Contracted Revenue remains strong
Future Contracted Revenue remains strong For personal use only Future Contracted Revenue Future Contracted Revenue Realisation Year 1.6 4.1 67.0 56.8 62.3 14.2 14.2 46.3 10.0 32.2 8.6 24.5 6.0 5.3 4.0 4.1 4.0 11.3 2.9 0.9 0.4 0.1 4.6 5.5 6.4 7.8 8.7 9.5 8.2 FY15 FY16 FY17 FY18 FY19 FY20 FY20‐29 FY08
Slide 12: Financial Results
For personal use only 12 Financial Results
Slide 13: Operating NPAT at $4.5m
Operating NPAT at $4.5m For personal use only 000’s FY2014($) FY2013($) Revenue & other income 25,827 22,166 Revenue up 17% Employee benefits expense (12,849) (9,906) Staff costs increased 30%, Depreciation and Amortisation (914) (773) primarily due to planned Rental expenses (530) (437) investments
Slide 14: Revenue up 17% to record $25.8m
Revenue up 17% to record $25.8m For personal use only Projects and Advisory Services revenue up 226, 1% 4,310, 5,775, 17% 137% to $5.775m, including a $1.235m 22% contribution from Exergy since March 2014 948, 4% Small Site procurement revenue increased 503, 2% 100% reaching 0.948m 230, 1% Con
Slide 15: Cash Flow Remains Strong
Cash Flow Remains Strong For personal use only 2014 ($) 2013 ($) CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 26,202,218 23,302,450 Driven by 17% Revenue Payments to suppliers and employees (20,234,046) (16,073,715) growth One off commission payment ‐ (1,726,930) Acquisition transact
Slide 16: Balance Sheet continues to strengthen
Balance Sheet continues to strengthen 2014 ($) 2013($) For personal use only CURRENT ASSETS Cash and cash equivalents 4,556,558 6,444,441 Strong cash position retained Exergy Escrow 1,000,000 ‐ post first $2m payment to Trade and other receivables 5,293,181 3,513,972 Other assets 1,258,455 980,715 E
Slide 17: Operational Performance
For personal use only Operational Performance 17
Slide 18: Energy Procurement
Energy Procurement For personal use only The Australian Energy Exchange (AEX) is Energy FY2014 FY2013 Variance Action’s online reverse auction platform. 1 Energy suppliers competitively bid for large site No. of successful auctions 1406 1390 1% electricity contracts Average auction contract durati
Slide 19: Energy Procurement: Large Market Electricity Auctions
Energy Procurement Large Market Electricity Auctions For personal use only Low first half FY2014 volumes driven predominantly by sales team restructure April 2013 Recovery in second half FY2014 back to historical levels Load successfully contracted via auction (MWh's) H2 FY2014 4,500,000 4,000,0
Slide 20: Energy Procurement: Renewal cliff opportunity
Energy Procurement For personal use only Renewal cliff opportunity Due to the uncertainty as a result of carbon tax customers did not renew beyond 2015 EAX has 5,236 sites due for renewal between June 2014 and December 2014 and 7,133 sites between June 2015 and December 2015 77% of sites under
Slide 21: Energy Procurement - Total Potential Market
6 Energy Procurement ‐ Total Potential Market For personal use only $103M Potential Annual Revenue from total accessible market $66M Potential Annual Revenue from Large C&I market $37M Potential Annual Revenue from Small C& I market Total Accessible Commissions $103.65M (80,000 GWh) Small Stra
Slide 22: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only Activ8 platform provides contract management services via automated monitoring and reporting– FY2014 FY2013 Variance highly scalable Average Activ8 contract 54 53 2% Key Customer deliverables are: duration Monthly Bill Validations No
Slide 23: Contract Management - Total Potential Market
12 Contract Management ‐ Total Potential Market For personal use only $150M Potential Annual Revenue from total accessible market 75,000 potential sites worth around $150 million in contract management fees are accessible in the Australian market. >80% of Energy Action large market electricity
Slide 24: Projects & Advisory Services (inc Exergy)
Projects & Advisory Services (inc Exergy) For personal use only Total Annual Potential Market (Millions) Efficiency and sustainability consultancy services provided by engineers and Compliance and commercial specialists across a range of Sustainability energy efficient technologies Energy Audits,
Slide 25: Projects & Advisory Services: Exergy - acquired March 2014
Projects & Advisory Services Exergy ‐ acquired March 2014 For personal use only Founded in 1999 by Dr Paul Bannister 30 staff, offices in Canberra, Sydney and Melbourne Australia’s leading energy efficiency consultancy Renowned for: Incisive technical and analytical work Insightful progr
Slide 26: Case Study: Sirromet Winery
Projects & Advisory Services Case Study: Sirromet Winery For personal use only Sirromet Wines is a 5 star winery located outside of Brisbane Energy Action commissioned a 200kW solar power solution for Sirromet Expected results of the partnership: A reduction in annual energy spend of $50,000
Slide 27: Acquisition Update
For personal use only 27 Acquisition Update
Slide 28: EnergyAdvice
EnergyAdvice For personal use only Founded in 1996 by Mr Phil Randall 30 staff with offices in Melbourne, Sydney and Brisbane Established Energy Procurement Consultant with strong market share Consistent Growth Strong Reputation Customer Base contains 40 of the top 400 Energy Users in Au
Slide 29: EnergyAdvice Rationale
EnergyAdvice Rationale For personal use only Delivering on key strategic intent – consolidating the brokerage market Potential to cross sell Energy Action’s Projects & Advisory Services Opportunity to consolidate IT landscapes between organisations Immediate additional offers available to En
Slide 30: Key EnergyAdvice Clients
Key EnergyAdvice Clients For personal use only 30
Slide 31: Outlook
For personal use only 31 Outlook
Slide 32: FY2015 Outlook
FY2015 Outlook For personal use only Well positioned for revenue growth, both organic and via the integration of EnergyAdvice and full year realisation of Exergy revenue Expecting to return to operating profit growth Key operational focus on realising the benefits related to recent acquisition
Slide 33: Further information
Further information For personal use only Scott Wooldridge Chief Executive Officer 02 9633 6471 scott.wooldridge@energyaction.com.au 33
Slide 34: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Energy Action Limited ABN: 90 137 363 636. This presentation is not intended as an offer or solicitation with respect to the purchase or sale of any security nor does it constitute an offer or solicitation in any jurisdiction in