Eki Energy Services Ltd. · BSE:EKI
Eki Energy Services — Q1 FY24 Earnings Presentation
38 slides from Eki Energy Services's earnings presentation, Sep 23, 2023
Slide 1: Cover letter to BSE Limited
September 23, 2023 To, BSE Limited Corporate Relationship Department, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001. Scrip Code: 543284 Symbol: EKI Subject: Investor Presentation. Dear Sir(s), Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations
Slide 2: Investor Presentation – Q1FY24 & FY23
CARBON NEUTRAL COMPANY EKI Energy Services Limited EnKing International Investor Presentation – Q1FY24 & FY23
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by EKI ENERGY SERVICES LIMITED (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Contents
1 Company Overview Contents 2 Financial Performance 3 Key Strategic Initiatives 4 Future Outlook and Business Opportunities 5 Environment and Social Initiatives
Slide 5: Company Overview
COMPANY OVERVIEW SUSTAINABLE BEGINNING
Slide 6: Vision
Vision Vision Statement 3,500+ Clients 40+ Countries Imagine a ‘Net-Zero’ world. A world where humanity has come together and defeated the climate crisis. Where sustainability is prime consideration in all 225+ Employees human activity. Where, through focused innovation, both technological progress
Slide 7: Growth Journey: Celebrating 14 Years of Success
Growth Journey: Celebrating 14 Years of Success 2022 - 23 2022 o Launched India's first Climate EdTech and 2021 o First ever company to list a Plastic Climate Finance company o Committed to become 2019-20 o Listed on BSE (SME Segment) project from India net-zero by 2030 with Verra- a global o Sold 4
Slide 8: Business Process for Carbon Credit Development
Business Process for Carbon Credit Development Project Owner role including selection of EKI Validation + Registration Process Verification & Issuance Process Sale of Carbon Credits Client Selection of EKI Project Identification Selection of DOE for Documentation as per Approved Methodology Project
Slide 9: A Truly Global Company With Leading Market Share
A Truly Global Company With Leading Market Share… Global presence … Norway UK Germany Switzerland France Italy Jordan Turkey UAE China USA Dom. Rep. India Ghana Egypt B’desh Mexico Thailand Vietnam Rwanda Costa Rica Kenya Malaysia Singapore Philippines Brazil Malawi Peru Indonesia Botswana South Afr
Slide 10: Carbon Market: The Present Turbulence & The Prospects
Carbon Market: The Present Turbulence & The Prospects Causes Russia-Ukraine War Greenwashing Issue Quality and Integrity Regulatory Issues Uncertainties Market Correction a) VCM Registries are actively upgrading methodologies addressing real and measurable Credits generation b) Emergence of Independ
Slide 11: A Sunshine Industry
A Sunshine Industry Growth Drivers The global carbon credit market traded value was US$978.56 billion in 2022. The market is expected to reach o Increasing regulatory and stakeholder pressure on global corporations to lower emissions. These trends are US$2.68 trillion by 2028. at a CAGR of 18.23% du
Slide 12: International Clients
International Clients World Bank Group International Monetary The United Nations Siemens AG, Germany Statkraft Energias Fund Office for Project Services Kenya State Electricity Shell, Singapore Volkswagen, Burgos Wind Farm, Bitexco Group Generation Company, Germany Philippines Kenya Pacific Light, X
Slide 13: National Private Sector Clients
National Private Sector Clients Indian Conglomerates MNCs with Indian presence 12 The brand names mentioned are the property of their respective owners and are used here for identification purpose only
Slide 14: National Public Sector Clients
National Public Sector Clients NTPC NHPC Airports Authority of India Indore Smart City Development Oil and Natural Gas Corporation Gail Central Water & Power Research Ordnance Factory Board Balmar Lawrie & Co. Rajasthan State Mines and Station Minerals 13 The brand names mentioned are the property o
Slide 15: Our Association and Empanelment
Our Association and Empanelment International partnerships provides us a platform for product innovation Carbon Markets Association of India Membership with IETA (International ASSOCHAM Global Gold Consultant of Carbon (CMAI) Emissions Trading Association) Disclosure Project (CDP) Membership with Co
Slide 16: Our Association and Empanelment (Cont'd)
Our Association and Empanelment (Cont’d) RECS International I am SME of India Accredited with BEE ESCO INDIA Solar Prosumer Turkey Services Exports Promotion Council Alliance for an Energy Efficient Economy 15 The brand names mentioned are the property of their respective owners and are used here fo
Slide 17: Financial Performance
FINANCIAL PERFORMANCE TOWARDS NET-ZERO
Slide 18: FY23 Financial Update
FY23 Financial Update Revenue from Operations EBITDA & Margins PAT & Margins (₹ Cr) (₹ Cr) (₹ Cr) 1,800 516 383 1,286 29% 21% 162 120 13% 9% FY22 FY23 FY22 FY23 FY22 FY23 Key highlights Q4 & FY23 performance • Wider Carbon Credit industry has been facing low demand due to prolonged Russia – Ukraine
Slide 19: Consolidated Financial Performance – Q4 & FY23
Consolidated Financial Performance – Q4 & FY23 Particulate (₹ Cr) Q4 FY23 FY23 FY22 Revenue from Operations 99.8 1286.4 1,800.1 Purchase of stock-in-trade 148.2 1022.9 1333.1 Changes in Inventories -39.8 -113.8 -195.9 Employee Benefits Expense 11.0 54.4 25.2 Other Expenses 40.5 160.6 122.1 EBITDA -6
Slide 20: Consolidated Balance Sheet - FY23
Consolidated Balance Sheet - FY23 Assets (Rs. Crs) FY23 FY22 Liabilities (Rs. Crs) FY23 FY22 Property, plant and equipment 7.0 1.5 Equity Share Capital 27.5 6.9 Capital Work-in-Progress 1.3 0.3 Other Equity 495.6 402.2 Intangible Assets 5.6 1.2 Non -Controlling Interest 18.3 0.6 Intangible Assets un
Slide 21: Consolidated Cash Flow Statement – FY23
Consolidated Cash Flow Statement – FY23 Particulate (₹ Cr) FY23 FY22 Cash Flow from Operating Activities Profit before Tax 165.6 515.4 Adjustment for Non-Operating Items 10.0 -0.1 Operating Profit before Working Capital Changes 175.6 515.3 Changes in Working Capital 67.8 -379.2 Cash Generated from O
Slide 22: Consolidated Financial Performance – Q1 FY24
Consolidated Financial Performance – Q1 FY24 Particulate (₹ Cr) Q1 FY24 Q4 FY23 Q1 FY23 Revenue from Operations 63.0 99.8 435.6 Purchase of stock-in-trade 25.6 148.2 294.3 Changes in Inventories 40.9 -39.8 9.6 Employee Benefits Expense 11.1 11.0 11.0 Other Expenses 16.8 40.5 43.2 EBITDA -31.4 -60.1
Slide 23: Focused on Capital Efficiency
Focused on Capital Efficiency Revenue from Operation Profit After Tax Our growth is: Strategic: 1,258.4 119.7 o Market intelligence based: +109.0% Actively managed credit +230.8% inventory based on demand and price outlook o Network and capability driven: Leveraged deep relationships 66.0 across glo
Slide 24: Healthy Inventory and Broad Geographic Footprint of Sales
Healthy Inventory and Broad Geographic Footprint of Sales Stock in hand: ~15 Mn Credits (FY23) Geographic dispersion of Sales: ~61 Mn Credits (FY23) Split by number of credits Split by number of credits 14.0% 10.0% 2.0% 20.0% 7.0% 2.0% 6.0% 28.0% 71.0% Asia Technology based 40.0% Europe Forest based
Slide 25: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES ACCELERATED NEUTRALITY
Slide 26: Path to Long term Success – 3P
Path to Long term Success – 3P Presence – • Clients in more than 40 countries globally including Latin America, Africa, SE Asia & Turkiye • Subsidiaries in Singapore, Dubai, Turkey and Egypt Diversify and scale GTM Strategy own credit supply Portfolio of Offerings – • Offset portfolio management • O
Slide 27: Key Strategic Initiatives
Key Strategic Initiatives SATISFACTION AND SUSTAINABILITY KEY TO GROWTH 1. Strengthening presence across the supply chain EKI is strengthening backward integration by carbon credit project In addition, the Company is constantly looking development. EKI is also building 360-degree MRV capabilities th
Slide 28: 1. Strengthening Supply Chain: Backward Integration
1. Strengthening Supply Chain: Backward Integration WE ARE THE LARGEST BIOMASS-BASED COOKSTOVE MANUFACTURER IN THE WORLD GHG REDUCTION TECHNOLOGIES PVT. LTD. Strengthening backward integration of carbon credit supply chain through community-based projects Started manufacturing cook stoves in Nashik
Slide 29: Robust Process For End-to-End Execution Of Community-based Projects
1. Strengthening Supply Chain: Robust Process For End-to-End Execution Of Community-based Projects (1) Monitoring Approach Illustrative evidences 1 Beneficiary data captured digitally: 1 2 Local stakeholder meeting o Identifiers incl. contact number, geo- coordinates, national ID, etc. captured dur
Slide 30: 2. Increasing Brand Presence Through 4-pronged Strategy
2. Increasing Brand Presence Through 4-pronged Strategy 1 Actively shaping the global agenda 2 Building regional networks 3 Sectoral outreach and relevance Participation and speaking opportunities at Participation in reputed events in key Engagement opportunities with target client segments key glob
Slide 31: 3. Diversifying our Business
3. Diversifying our Business With an eye towards the future – we have entered into collaborative-strategic partnerships, forayed into new spaces and laid foundation for long term success Established backward integration Gravity based water-filter Manufacturing and supply chain of >40% of credits of
Slide 32: Outlook and Business Opportunities
OUTLOOK AND BUSINESS OPPORTUNITIES
Slide 33: Developments That Shall Boost EKI's Position In Carbon Markets
Developments That Shall Boost EKI’s Position In Carbon Markets Opportunity EKI’s right to win Implementation of the New industry and nation- Quality premium in Paris Agreement’s Article 6 al compliance schemes the voluntary market o Provision for trade of emission reductions o New sources of demand
Slide 34: Strong Business Outlook and Plans Across Each Verticals
Strong Business Outlook and Plans Across Each Verticals Business unit Strategic Outlook Progress so far (FY23 YTD) Plans for next 12 months o Diversify credit supply o Introduced new range of products: o Increase share of supply from community-based, Consultancy nature-based projects with reported S
Slide 35: Key Investment Highlights
Key Investment Highlights o Strong legacy of over 14 years in the carbon markets 1 Trust and experience o Over 3,500 clients globally o Presence in 40+ countries o 15% share of global voluntary carbon market 2 Market leader o Voluntary carbon market growing at CAGR of ~35% in past 5 years in growing
Slide 36: Environment and Social Initiatives
ENVIRONMENT AND SOCIAL INITIATIVES
Slide 37: Environment and Social Initiatives
Environment and Social Initiatives Environment Social o Committed to reach ‘Net-Zero’ by 2030: o Plan for social activities developed including: o Undertaking annual GHG footprint calculation o Financial literacy programs for marginalized communities o Committed to UNFCCC Climate Neutral Now o Skill
Slide 38: Thank You
THANK YOU EKI Energy Services Ltd CIN :L74200MP2011PLC025904 Ms. Itisha Sahu cs@enkingint.org Mr. Devansh Dedhia +91 99301 47479 devansh.dedhia@linkintime.co.in Mr. Irfan Raeen +91 97737 78669 Irfan.raeen@linkintime.co.in