Sabien Technology Group Plc · LSE:SNT
Sabien Technology — Investor Presentation (February 2016)
28 slides from Sabien Technology's investor presentation, Feb 24, 2016
Slide 1: Institutional Presentation
Institutional Presentation Presentations led by: Bruce Gordon – Chairman Sabien Technology Group PLC Alan O’Brien – CEO Sabien Technology Group PLC Gus Orchard – FD Sabien Technology Group PLC Date: 24/02/16
Slide 2: Disclaimer
Disclaimer The information is this presentation, which is for background purposes only, is preliminary in nature and is subject to change. This presentation sets out certain features of Sabien Technology Group plc (“Sabien”) and does not purport to provide a complete description of Sabien or its sha
Slide 3: Table of Contents
Table of Contents Half year results to 31 December 2015 4 Highlights since 31 December 2015 5 UK Sales Pipeline Forecast to 30 June 2016 6 Pilot forecast/target summary 7 Income Statement, Balance Sheet & Cash Flow– 3 year record 8-10 Financial plan: Financial and non-financial KPIs – FY 2015/16 11
Slide 4: Half year results to 31 December 2015
Half year results to 31 December 2015 Highlights (comparisons with half year to 31 December 2014) Sales of M2G: £321k (2014: £542k) Loss before tax: £984k (2014: £521k loss) Net cash balance at 31 December 2015: £868k (2014: £1,106k) Sales pipeline: £6.4m (2014: £6.9m) Sales from indirect partners 4
Slide 5: Highlights since 31 December 2015
Highlights since 31 December 2015 Sales pipeline at 31 December 2015 of £6.4m (£5.8m at October 2015) Orders received since 1 January M1G - £92k M2G - £325k Continuation of P35 pilot programme. 38 pilots in total agreed with clients to date. Target 35 Signed up 38 In site survey (pre-measurement) 14
Slide 6: UK Sales Pipeline Forecast to 30 June 2016
UK Sales Pipeline Forecast to 30 June 2016 The pipeline was £6.4m at 31 December 2015 with over 100 active prospects and clients. Historically, 30% of the pipeline has converted to sales in the following 12 months. The following are included in our current pipeline: Public sector Private sector Sect
Slide 7: Pilot forecast/target summary
Pilot forecast/target summary Financial Year 2015/16 2016/17 2017/18 2018/19 2019/20 Companies in Project Pilot* 35 40 50 60 70 *up to M2G RRP @£1,850 per boiler fitted Companies in Project Pilot will be new each year Revenue going forward is derived from previous years’ pilots Avg. order value per
Slide 8: Income Statement – 3 year record
Income Statement – 3 year record Dec 15 June 15 Dec 14 June 14 Dec 13 June 13 £k Half Year Full Year Half Year Full Year Half Year Full Year Revenue 321 1,744 542 2,139 924 2,471 Gross Margin 196 1,231 370 1,506 685 1,772 Recurring operating costs (1,180) (1,812) (896) (1,815) (939) (1,391) Operatin
Slide 9: Balance Sheet – 3 year record
Balance Sheet – 3 year record December June 15 December June 14 December June 13 £k 15 Full 14 Full 13 Full Half Year Year Half Year Year Half Year Year Property, plant, equipment 639 576 620 661 693 678 & intangible Deferred tax asset - - 215 215 194 194 Cash 868 1,171 1,106 1,425 1,582 1,357 Trade
Slide 10: Cash Flow – 3 year record
Cash Flow – 3 year record December December December June 15 June 14 June 13 £k 15 14 13 Full Year Full Year Full Year Half year Half Year Half Year Cash flow (used in)/from (884) (267) (327) 201 351 371 operations Share issue 694 98 98 - - - Capex (114) (7) (5) (70) (56) (20) Interest received 1 13
Slide 11: Financial Plan: Financial & Non Financial KPI’s – FY 2015/16
Financial Plan: Financial & Non Financial KPI’s – FY 2015/16 Large increase in overhead due to impact of new recruitment and M2G development. Monthly running cost currently estimated at c£190k Fund raise in August generated £770k (gross) (£694k net). Funds used for recruitment, development and up fr
Slide 12: New Business Model - “Free Pilots”
New Business Model - “Free Pilots” Clients will continue to pilot on three sites for a period of 4-6 weeks usually during the heating season which runs from October to May. The cost of the pilot M2Gs will be added to the estate wide business case post pilot. Objective/target to deliver up to 35 pilo
Slide 13: Terms of Reference (TOR) - “Free Pilots”
Terms of Reference (TOR) - “Free Pilots” The piloting TOR will be no different for free pilots The main criteria include: Entry level revenue potential min £250,000 How many buildings are in the estate and how many are owned by the client? How many boilers are in the estate? Annual fuel spend (Heati
Slide 14: Appendices
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Slide 15: Company overview and milestones
Company overview and milestones Sabien Technology manufacture, sell and install innovative commercial retrofit energy efficiency technology, M2G and M1G that reduce energy consumption in boilers Founded by Alan O’Brien (CEO) in 2004 Quoted on AIM since December 2006 Based in Watford with 20 employee
Slide 16: What are M2G and M1G?
What are M2G and M1G? M2G is a retrofit control for commercial boilers providing space heating and hot water Installed within 2 hours the M2G immediately reduces fuel consumption Typical savings are between 10% and 25% with payback under 2 years M1G is a retrofit control for direct fired hot water h
Slide 17: Drivers – Market, Legislation and Economic Drivers
Drivers – Market, Legislation and Economic Drivers Reduction in energy costs and CO2 emissions Automated Metering and Building Energy Management Systems (BEMS) enable accurate measurement of energy consumption therefore providing validation of M2G Legislation CRC (Carbon Reduction Commitment) Any or
Slide 18: Market Opportunity UK and Overseas
Market Opportunity UK and Overseas Sabien operates in the commercial space heating sector Estimated 6 million commercial boilers in the UK 2 million commercial buildings in the UK Typically a commercial building will have 3 boilers per building Overseas Main concentrations in USA, China, India, Euro
Slide 19: Competition UK and Overseas
Competition UK and Overseas Competition in the UK and Overseas is low There are no close substitute products in the marketplace However Perceived indirect competition includes BMS suppliers e.g. Trend, Siemens This can be a sales barrier and can prolong the sales cycle Once a clients’ Engineering Te
Slide 20: Key Elements of Business Strategy
Key Elements of Business Strategy Direct sales Continued focus on prospecting private and public sector multi-site organisations. force Direct sales team consists of three BDMs who target, acquire and account manage multi-site clients. Big emphasis on scaling pilots per heating season over next 5 ye
Slide 21: Piloting M2G – customer journey explained
Piloting M2G – customer journey explained 1 Pilot sites identified from asset log Estate wide Asset log provided 2 M2G is installed Sites are agreed between client and Sabien Measurement Sabien manages the complete end to end process of the pilot. 3 & Monitoring equipment installed The client is inv
Slide 22: Dedicated Project Management
Dedicated Project Management 1 Review asset log Kick-off meeting after 2 Agree scope of project Agreed method of contract signature working together Communication structure i.e. points of contact Agree reports and reporting frequency Sabien provides complete end to Issues log to capture end project
Slide 23: Pilot savings explained
Pilot savings explained Over 9,500 M2Gs have been installed across the private and public sectors. M2G has continued to deliver significant energy consumption and CO2 reductions with payback within short periods. Typical energy savings of between 10% and 25% with payback under 2 years. Client Averag
Slide 24: Pilot savings explained
Pilot savings explained During piloting when the M2G is functioning in save and bypass modes (i.e. toggle mode, used during the pilot), only 50% of the potential gas consumption savings are being delivered. The pilot period is usually during the coldest period of the year i.e. Oct-Mar and for a term
Slide 25: Key Active Programmes
Key Active Programmes 5 year growth plan launched in May 2015 targeting large multi-site public and private sector organisations to pilot M2G enabling organisations to validate technology in their own buildings free of charge, thereby significantly reducing the sales cycle and removing the final bar
Slide 26: Business Development - Overseas
Business Development - Overseas Expanded Overseas network using established Tech Centres Currently has 35 Tech Centres across the USA, Europe, Middle East, South America, Asia and Oceania It is anticipated that a number of pilots will be mobilised in 2016/17 in the US, Europe, and Asia through our n
Slide 27: Sabien Technology Ltd – Senior Management Team
Sabien Technology Ltd – Senior Management Team David Bakst - Operations Director Dr Vahid Jalili – Overseas Business David has worked in the utilities market in the UK for the Development Director past eight years in energy and telecommunications. Vahid has over 15 years of Business Development Befo
Slide 28: Sabien Technology Group PLC - Board
Sabien Technology Group PLC - Board Bruce Gordon – Chairman Gus Orchard – Finance Director From 2001 to 2008 Bruce was a senior partner of Deloitte Gus is a fellow of the Institute of Chartered Accountants LLP responsible for the Southern Region. His clients included and has held numerous appointmen
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