Locality Planning Energy Holdings Limited · ASX:LPE
Locality Planning Energy — FY2021 Earnings Presentation
21 slides from Locality Planning Energy's earnings presentation, Jul 20, 2021
Slide 1: Preliminary Unaudited Full Year Results
Locality Planning Energy (ASX:LPE) Preliminary Unaudited Full Year Results 2021 Financial Year Creating Sustainable Communities of the Future through a High Growth, Recurring Revenue Business Model
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Locality Planning Energy Holdings Limited (LPE). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in LPE. You should not treat the contents of this presentation, or
Slide 3: FY2021 Highlights
FY2021 HIGHLIGHTS $55m +27% +8% +163% +217% RECURRING REVENUE OPERATING GROSS INCREASE IN REVENUE GROWTH COSTS PROFIT* EBITDA LPE achieved An increase of 27% A modest increase of An increase to EBITDA increased record annual from 2020 Financial 8% from $11m in FY20 $14.9m for FY21, by 217% from reve
Slide 4: FY2021 vs FY2020
FY2021 VS FY2020 55 FY2021 ($m) The Company has achieved significant financial gains during FY21 FY2020 ($m) With strong performance attributed to a solid customer base of 44 contracted revenues, coupled with the successful implementation of the broad efficiency improvement program which was complet
Slide 5: Track Record of Growth
$55m TRACK RECORD OF GROWTH $43m “During the 2021 Financial Year, FY2021 Revenue $28m LPE has continued to achieve Financial Year revenues comparisons strong growth with a 27% increase in revenue, and the $21m Company is now positioned for further growth with the uptake of our exclusive shared solar
Slide 6: Strong Customer Growth
STRONG CUSTOMER GROWTH 6,245 10,000 Additional 4,963 Customers Achieved During the 2021 calendar year, representing healthy growth of 1,390 ~30% Growth 35,005 From the previous year. SME Customers 151 Residential Customers 26,253 In South-East Queensland, LPE expects 117 20,165 to continue to expand
Slide 7: About Us
ABOUT US LPE is a fast-growing electricity provider challenging the way customers receive their electricity; going beyond being just a traditional supplier, the Company is a leader in innovation supporting strata communities to think of tomorrow. With first to market technology, LPE has delivered sh
Slide 8: Market Share
MARKET SHARE LPE is one of the largest electricity retailers in Queensland on the Energex network: Origin: 28% LPE = 6th Largest AGL: 18.3% Electricity Market Share Alinta Energy: 9.8% in SE Queensland with Energy Australia: 5.2% much more upside and Red Energy: 2.3% growth available Locality Planni
Slide 9: A Significant Market Opportunity
A SIGNIFICANT MARKET OPPORTUNITY Strata communities are highly loyal and sticky; the ideal customer Queensland $940m 10% & NSW $13b Strata communities eligible Australia’s population that Queensland has over 45,000 Australia’s total energy for embedded networks live in apartments or strata schemes a
Slide 10: FY2022 Growth Strategy
FY2022 GROWTH STRATEGY Exclusive shared solar-in-strata • Commitment for 300 shared solar systems in FY2022 and growing, with several hundred opportunities already in the pipeline. • Shared solar overcomes apartment living’s greatest barriers to solar electricity; who is allowed accesses to the shar
Slide 11: Growth Strategy
GROWTH STRATEGY Traditional electricity supply rollout to increase customer base • Direct campaign to capture 6,000 customers per year moving out of an embedded network. • Business sales team to continue to drive strategic growth (in the current environment) in SME sector. • Expanding presence in al
Slide 12: Investor Opportunity
INVESTOR OPPORTUNITY Based on recent M&A activity, LPE is currently trading at a 32% discount to existing customer value LPE enterprise value (EV)* $23m Contracted customers value** $24m 17,738 Contracted Recurring customer value*** $9m 23,513 Recurring Total customer value $33m Difference to EV $10
Slide 13: Investment Opportunity
INVESMENT OPPORTUNITY 41,250 Recurring revenue business model with over 41,000 customers, and the majority in long term contracts with a current CUSTOMERS growth rate of over 30% per annum. 60% Defensive core embedded network business with approximately 60% of total recurring revenues contracted and
Slide 14: Corporate Snapshot
CORPORATE SNAPSHOT • LPE achieved its customer guidance adding over 10,000 customers during FY21 taking LPE’s total customers to 41,250. • Significant financial gains during FY21 have been achieved as compared to the previous corresponding period. • The Company is at an inflection point of operation
Slide 15: Embedded Networks
EMBEDDED NETWORKS • Embedded networks aggregate electricity for a community via one market facing meter, the parent meter, thereby reduces network costs by connecting multiple apartments to the National Electricity Market. • Electricity is supplied to individual apartments via their meter, with each
Slide 16: Shared Solar
SHARED SOLAR • LPE’s Shared Solar over comes all barriers including no capital cost to the community with instant savings, and long-term 15 year supply contracts. • Occupiers are sold the solar electricity at a c/kWh rate lower than their traditional grid supplied electricity, creating greater savin
Slide 17: Shared Solar
SHARED SOLAR • The solar electricity charge covers capital costs and increases LPE’s customer margin. • Target gross profit (GP) of over 20% separate to capital recovery while at the same time saving the customer on their electricity costs. • For an apartment, increases the customer GP to over $250
Slide 18: Centralised Hot Water
CENTRALISED HOT WATER • LPE installs, maintains and owns the hot water plants entering into long-term 10-year supply agreements. • LPE are at the forefront of sustainable water heating solutions using solar electricity to heat electric element water heaters providing communities with carbon neutral
Slide 19: Retail Electricity
RETAIL ELECTRICITY • The LPE team is passionate about sharing their expert knowledge to help customers understand their electricity usage and charges • No Lock-in Contracts • Flexible Payment Options • Simple plans • Differentiation is based on a commitment to local people, service and honest pricin
Slide 20: Board of Directors
BOARD OF DIRECTORS Justin Pettett – Non-Executive Chairman ● Co-founder of LPE with over 21 years of ASX company experience having founded and helped companies from start-up to take- over/acquisition/public-listing stage. ● Proven track record in identifying and maximising business opportunities in
Slide 21: Contact
CONTACT Justin Pettett Non-Executive Chairman jpettett@localityenergy.com.au 1800 040 168 Investor and Media Relations Jane Morgan jm@janemorganmanagement.com.au +61 405 555 618
Locality Planning Energy Holdings — FY2021 Earnings Presentation on 6ix