Energy Action Limited · ASX:EAX
Energy Action — FY2020 Earnings Presentation
28 slides from Energy Action's earnings presentation, Aug 26, 2020
Slide 1: FY20 Results Presentation
FY20 Results Presentation John Tracy Huggart Bucciarelli Chief Executive Officer Chief Financial Officer August 2020 Energy Action Limited Energy Action Limited
Slide 2: FY20 results agenda
2 FY20 results agenda ► The ► Group Vision Financial John Huggart Results Tracy Bucciarelli ► Operational ► FY21 Performance Priorities John Huggart John Huggart
Slide 3: We are back.
3 We are back. Back to black Back to growth Backing our technology future ▶ The business has recorded a small ▶ Leading indicators are strengthening, and ▶ The transformation of our customer operating profit for the year, following a the business is on-track to grow sales relationship management pla
Slide 4: Financial highlights
4 Operating cash Operating Operating costs & Operating Financial flow of profit of COGS down by EBITDA of highlights $2m $0.02m $4.2m $1.8m Excluding government $1m FY19 Reduced 19% during EBITDA margin at 8.9% stimulus the period Auctions and Tender revenue Higher Strong Operational metrics net sal
Slide 5: The Vision
5 The Vision “…we were pleasantly surprised when our Account Manager informed us that our Gas Metrics service had identified billing errors for two of our sites of approximately $180,000. Due to the complexity of electricity and gas meter data and often confusing billing dynamics, we may not have id
Slide 6: Our mission is to help customers understand and take control of their energy needs
6 Our mission is to help ► Why is this important? customers understand Energy is a minefield of rising financial and environmental costs and risks and data confusion and take control of their ► How does this benefit customers? energy needs. We help businesses reduce their costs, reduce the effort to
Slide 7: Our vision.
7 Our vision. We are striving to be a category killer. ► Our goal ► What we do ► Our advantages ► How will we get there A category killer for We help businesses EAX leads in procurement, Invest in technology to drive business energy reduce costs, the effort to with scale client base and efficiencies
Slide 8: Our long-term growth plan.
8 Our long-term growth plan. Horizon 3 Horizon 2 Scale business into new markets Horizon 1 Nurture emerging growth opportunities Foundations established Maintain and grow core business Strategy now complete: Strategy: Strategy: Strategy: ► Realigned operating divisions with demand ► Accelerate leade
Slide 9: Group Financial Results
9 Group Financial Results “Australian Rail Track Corporation (ARTC) have worked with Energy Action for a number of years and we are very satisfied with the service the current team have provided. Services include reporting, procurement and account management. Their service and professionalism is exc
Slide 10: Income statement FY20.
FY20 FY19 % Variance 10 Revenue 19,781,729 24,801,100 -20% Income statement COGS 1,573,074 3,410,880 54% FY20. Gross margin Opex - excl D&A 18,208,656 16,442,099 21,390,220 18,851,587 -15% 13% EBITDA 1,766,557 2,538,634 -30% Operating profit $0.02m ^ Depreciation and amortisation 1,369,955 914,641 -
Slide 11: Operational savings.
11 Operational savings. Operating overheads & COGS decreased 19% to $18m in FY20 Reduction in Consolidation of Offshoring Reduction in Cost employment costs locations resources Directors fees control ▶ A reduction of 15 FTE ▶ Annualised savings ▶ Growth in offshore ▶ Directors numbers ▶ Reduced trav
Slide 12: Cash flow statement.
FY20 FY19 12 Operating EBITDA 1,766,557 2,538,633 Cash flow statement. Share based payments Trade debtors (3,002) 1,093,467 (147,392) 342,702 Other debtors (381,302) 324,501 Strong operating cash flow of Work in progress 479,134 13,591 $2m Revenue not invoiced 106,839 1,540,568 Before interest and t
Slide 13: Debt structure and key financial ratios.
13 Debt structure and 10M key financial ratios. 9M Credit Card Facility Unutilised Non Cash Guarantees 8M Borrowings Liquidity : Prudent financial management $4.91M Of cash and debt 7M Liquidity : $4.04M 6M 2-year, $7.55m market rate loan agreement 5M Net Debt : Reduced facility limit by $2m with sa
Slide 14: Operational Performance
14 Operational Performance “Energy Action’s procurement process identified an opportunity for Wilson Transformer Company to significantly reduce the cost of our energy account. Our Accounts Manager gave us excellent advice, drawing upon the team of energy experts within Energy Action.” __ Scott Shep
Slide 15: Repositioning the business.
15 Repositioning the business. ► Restatement of Business to 3 operating functions, Procurement, Managed Services and Retail Services Repositioned businesses to be reported as Other ► New Retail Services division focuses on growth-oriented services including retailer billing sites and embedded networ
Slide 16: Segment performance.
16 Segment performance. Overall revenue of $19.8m Procurement Progress Key drivers ► Higher auction volumes $6.5m In line with ► 2% higher auction volume despite 11% less ► Achieve higher average value customers on revenue FY19 retention opportunities than PCP auction platform ► 7.7% increase in ave
Slide 17: Innovation to drive sales growth.
17 Innovation to drive sales growth. ► Leading the market ► Launch Auction ► Innovate or ► Launch Bill Buster ► Sydney Trains with Net Zero Blitz Hibernate Initiative to bring group scope of service 80% of clients want to Initiative to help clients Energy Action adopted a buying to “small market” Ex
Slide 18: Impact of COVID-19.
18 Impact of COVID-19. Energy Action is a resilient business, with quality cash flow and sales growth Energy market Client base Operational Financial response considerations ▶ Only moderate impact on total ▶ Majority of clients stabilised, ▶ Developing resilience through electricity demand now engag
Slide 19: FY21 Priorities
19 FY21 Priorities “Energy Action have been valuable to our business in assisting us with analysis of usage, market conditions, and advice on providers across Australia. We recently procured a new contract with projected savings of ~35% per year in energy expenses.” __ Wayne Jones CEO Indoor Skydive
Slide 20: Accelerate.
20 Accelerate. Outlook with strong foundations for growth in place Operational Financial ► Sales: Accelerate ► Technology: Build ► Profit: Disciplined leadership in team capability and revenue, cost and Target: Target: procurement and invest in platform to cash management managed services Return to
Slide 21: info@energaction.com.au energyaction.com.au @EnergyActionAUS
21 1300 553 551 info@energaction.com.au energyaction.com.au @EnergyActionAUS linkedin.com/company/energy-action Communications by Energy Action Limited and its related bodies corporate (Energy Action) are subject to the terms of Energy Action’s General Disclaimer. Energy Action (Australia) Pty Ltd h
Slide 22: Appendix
22 Appendix “Energy Action made the tedious task of securing our multi-site energy contracts transparent and easy. Their process was simple, the results were quick and easy to compare and I’m happy with the service my Account Manager provided. I would recommend them to any Club seeking an energy par
Slide 23: Procurement.
23 Procurement. FY20 FY192 Variance Revenue of $6.5m (flat overall YoY) No. of successful AEX auctions 759 744* 2% Average AEX contract duration 29.4mth 28.1mth 1.30mth AEX auctions volumes up by 2% TWhs procured via auction 0.80 0.77 3.9% on FY19. 7.7% increase in average Average annualised MWhs pe
Slide 24: Managed Services.
24 Managed Services. Sites Under Management* - Managed Services Revenue of $11m (down 20% YoY) 8,000 7,000 6,000 5,000 5,446 sites currently under 4,000 management 3,000 2,000 1,000 Metrics gross sales order growth 52% compared to FY19 0 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Slide 25: Retail Services
25 Retail Services Sites Under Management* - Retail Services Revenue of $1.3m (up 51% YoY) 4,000 3,500 3,000 3,799 sites currently under 2,500 management 2,000 1,500 Growth in sites under management 1,000 of +385 sites in Retail Services and +69 sites in Embedded 500 Networks 0 Jul-19 Aug-19 Sep-19
Slide 26: Operating profit drivers.
26 Operating profit drivers. Reduction in NPAT driven by 1,500,000 lower revenue offset by 1,005,334 COGS and OPEX savings Lower OPEX excl. D&A improved by +13% 500,000 2,409,488 111,232 23,953 134,779 0 Financing -500,000 455,315 Lower net debt & interest rates resulting in Revenue interest savings
Slide 27: Statutory to operating profit reconciliation.
27 Statutory to operating profit reconciliation. NPAT EBITDA FY20 FY19 Variance FY20 FY19 Variance Statutory results (2,486,756) (12,092,885) 79% (1,491,769) (10,028,320) 85% Add back significant Items after tax: Strategic review - 265,086 100% - 365,634 100% Restructuring cost* 328,265 657,229 50%
Slide 28: Disclaimer.
28 Disclaimer. This presentation has been prepared by Energy Action LimitedABN: 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 which such an offe