Tpc Consolidated Limited · ASX:TPC
Tpc Consolidated — Investor Presentation (November 2016)
30 slides from Tpc Consolidated's investor presentation, Nov 21, 2016
Slide 1: TPC Consolidated Ltd Investor Presentation
For personal use only TPC Consolidated Ltd ASX:TPC Investor Presentation November 2016
Slide 2: Investor Presentation Agenda
Investor Presentation For personal use only SECTION 1 Introduction SECTION 2 FY16 Financial Results SECTION 3 Growth and Outlook Appendix Overview of the Australian Energy Market
Slide 3: Section 1: Introduction
For personal use only Section 1 INTRODUCTION
Slide 4: Corporate Snapshot
Section 1: Introduction Corporate Snapshot Details Values Shareholding Structure For personal use only Ordinary Shares on Issue 10.59m Share Price1 $0.90 Market Cap $9.5m 51% Total Borrowings - 49% Cash and Cash $2.0m Equivalents (net of debt)2 Enterprise Value $7.5m Other Shareholders Directors F
Slide 5: Investment Highlights
Section 1: Introduction Investment Highlights Addressable market size for SME is >$9bn Large & attractive For personal use only Consisting of around 1m SME customers target market Higher usage per customer Industry leading energy specific CRM Low cost Long established cost effective Philippines and
Slide 6: The CovaU Business
Section 1: Introduction The CovaU Business The CovaU business is rapidly expanding in customer number and top-line performance, driven by a clear strategy for growth and effective pricing For personal use only A wholly-owned subsidiary of Headquartered in Licences held for both TPC Consolidated Ltd
Slide 7: CovaU History
Section 1: Introduction CovaU History The CovaU business has experienced significant levels of growth since inception, expanding on the back of a growing customer base and wider geographical presence For personal use only April March January April Acquired the NSW Acquired the Investment in and excl
Slide 8: IT Systems
Section 1: Introduction IT Systems CovaU implements a variety of leading IT systems and solutions to: • streamline operations, For personal use only • facilitate the interaction of teams and databases, and • deliver efficient and comprehensive customer service CRM and billing system Risk management
Slide 9: Customer Lifecycle
Section 1: Introduction Customer Lifecycle CovaU has a well defined process to For personal use only onboard customers and work with them closely through their lifecycle, ensuring their energy Customer management Customer acquisition needs and service expectations are fully met Credit & Market colle
Slide 10: Senior Management Team
Section 1: Introduction Senior Management Team Charles Huang TPC has assembled a Chief Executive Officer team of highly-skilled Charles founded TPC Consolidated Ltd [ASX: TPC] (“TPC”) in 1996 as an ISP whilst in the third year of For personal use only his Bachelor of Mechanical Engineering degree at
Slide 11: Organisational Structure
Section 1: Introduction Organisational Structure TPC has a clearly defined organisational structure with an experienced Board and management team, supported by a driven and experienced team For personal use only Board CEO Head of Consumer Head of Head of Sales Head of IT Chief Strategy Officer Chief
Slide 12: Customer Strategy
Section 1: Introduction Customer Strategy CovaU offers competitive rates for the delivery of electricity and gas to households and businesses in Australia For personal use only Looking after Key benefits YOUR Simple Low rates True energy monthly means more service needs instalments savings Customer
Slide 13: CovaU Highlights
Section 1: Introduction CovaU Highlights CovaU has seen strong acquisition of customers growing to over 12,000 customers in 24 months and is expected to be generating revenue of at least $60m in FY17 For personal use only • All about growth in deregulated market • Grown customer numbers 0 >12,000 in
Slide 14: CovaU Highlights
Section 1: Introduction CovaU Highlights CovaU is seeing strong growth in customers and consumption in its key markets of NSW and VIC For personal use only • The only Tier 2 retailer with dual licences to sell electricity and gas • In key markets of NSW & VIC • NSW is one of the highest electricity
Slide 15: CovaU Highlights
Section 1: Introduction CovaU Highlights CovaU is seeing strong cross-sell of its gas products and is one of only six retailers licensed to sell both electricity and gas in NSW and VIC For personal use only • The only Tier 2 retailer licensed to sell electricity and gas • In key markets of NSW & VIC
Slide 16: Section 2: FY16 Financial Results
For personal use only Section 2 FY16 FINANCIAL RESULTS
Slide 17: Financial Highlights
Section 2: FY16 Financial Results Financial Highlights TPC’s core energy A$’000 Year end June 2016 Year end June 2015 Increase (%) retailing business has Sales of Energy 41,704 15,228 173.9% For personal use only experienced strong Telecommunication Services 5,939 9,340 (36.4%) growth throughout Rev
Slide 18: Section 3: Growth and Outlook
For personal use only Section 3 GROWTH AND OUTLOOK
Slide 19: Growth Opportunities
Section 3: Growth and Outlook Growth Opportunities For personal use only 1 Organic growth and 2 Increase revenue 3 Inorganic growth expansion through cross-sell • Increased marketing initiatives to • Adopting a dual fuel strategy, the • TPC is exploring inorganic growth expand presence and grow in a
Slide 20: Organic Outlook
Section 3: Growth and Outlook Organic Outlook In FY17, TPC is expected to generate organic revenues of approximately $60m and EBITDA of $2.0m – $3.0m For personal use only TPC Consolidated FY 2014 FY 2015 FY 2016 FY 2017 Revenue $13.1m $24.6m $47.6m ~$60m Gross Profit $3.8m $5.1m $7.7m ~$13m EBITDA
Slide 21: ASX Listed Comparable Companies
Section 3: Growth and Outlook ASX Listed Comparable Companies TPC is significantly undervalued when compared to ASX listed peer companies For personal use only ASX Listed Energy Company Peers FY16 FY16 FY16 FY17 FY17 FY17 Forward Company ASX Price Mkt Cap Enterprise Revenue EBITDA Net income Revenue
Slide 22: Contact
Contact Please direct Mr Charles Huang enquiries to: CEO For personal use only TPC Consolidated Limited Suite 802, Level 8 1 York Street Sydney NSW 2000 Phone: 1300 731 574 Email: info@tpc.com.au 21
Slide 23: Appendix: Overview of the Australian Energy Market
For personal use only Appendix OVERVIEW OF THE AUSTRALIAN ENERGY MARKET
Slide 24: Overview of the Australian energy market: Supply of electricity
Appendix: Overview of the Australian energy market Supply of electricity Segment currently served by: Generation Transmission Distribution Retailers For personal use only Description • Electricity generation • Electricity transported • Distribution lines and • Sell electricity to end- sold through t
Slide 25: Industry overview
Appendix: Overview of the Australian energy market Industry overview Market overview, SME segment and trends • Estimated overall Electricity Retailing Market in Australia is valued at • Fewer competitors focus on the SME category, despite SME customers For personal use only $51.5B, which is expected
Slide 26: Contesting the market
Appendix: Overview of the Australian energy market Contesting the market For personal use only • New electricity retailers that have entered the market include: CovaU BlueNRG Powershop Pooled Energy and Next Business Energy M2 Energy (Commander Power & Gas). • Not all retailers service both resident
Slide 27: Government licences
Appendix: Overview of the Australian energy market Government licences For personal use only • In Australia, the energy markets in the most profitable and largest markets have been deregulated and are opened to competition • To enter into these markets, potential retailers are required to be licence
Slide 28: Strong market positioning
Appendix: Overview of the Australian energy market Strong market positioning New South Wales Victoria Retailer Electricity Gas Electricity Gas ActewAGL For personal use only • In NSW, 28 retailers are authorised by the AGL Alinta Energy Australian Energy Regulator to provide Blue N
Slide 29: Change in retailers' market share VIC
Appendix: Overview of the Australian energy market Change in retailers’ market share VIC For personal use only • Victoria was the first market to deregulate • Expect NSW to follow market trends • The big four retailers dominate market share • Second tier retailers have increased market share YoY sin
Slide 30: Disclaimer
Disclaimer The material in this presentation has been prepared by TPC Consolidated Ltd (“TPC”) ABN 99 073 079 268 and is general background information about TPC’s activities current as at the date of this presentation. The information is For personal use only given in summary form and does not purp
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