Epx Limited · ASX:EPX
Epx — EP&T Global — FY2023 Earnings Presentation
34 slides from Epx's earnings presentation, Oct 3, 2023
Slide 1: FY23 Annual Results update
For personal use only Environment, Property & Technology Delivering operational efficiency and significant energy savings in all forms of commercial real estate FY23 Annual Results update September 2023
Slide 2: Important Notices
Important Notices This presentation (“Presentation”) has been prepared by EP&T Global Limited (“EP&T Global” or “Company ”). Y ou must read and accept the conditions in this notice before considering the information set out in or referred to in this Presentation. If you do not agree, accept or under
Slide 3: To be the world's most trusted building efficiency platform provider
For personal use only To be the world’s most trusted building efficiency platform provider.
Slide 4: Overview: EP&T Global
For personal use only Overview EP&T Global
Slide 5: Corporate Snapshot
Corporate Snapshot ASX: EPX Board and key management Share price (29 September 2023) A$0.023 Independent Chairman Jonathan Sweeney Fully Paid Ordinary Shares 445,913,710 For personal use only Executive Director & CEO John Balassis Options on issue 18,190,553 Independent Non-executive Director Victor
Slide 6: EP&T Global – Company Overview
EP&T Global – Company Overview The most trusted building efficiency platform delivering in over 26 countries • Proprietary technology – delivering cloud-based data analytics to detect energy inefficiencies in For personal use only buildings. The ability to identify faults and inefficiencies enables
Slide 7: FY23 Financial Highlights
FY23 Financial Highlights Improving financial position that is well placed to grow Statutory Revenue Recurring Revenue 1 For personal use only – ARR1 of $11.7m, being 96% of our operating cashflow breakeven3 target of $12.2m. $10.6m $11.7m – 89% recurring revenue, being consistent to FY22. Increase
Slide 8: EP&T's Market – buildings and the environment
EP&T’s Market – buildings and the environment EP&T is in the BEMS market, a US$6bn market - Buildings use 36% of the world’s energy and represent 28% of the world’s carbon emissions. For personal use only Global energy use by sector1 BMS c. US$24bn (2019)2 Buildings BEMS 28% 36% c. US$6bn (2019)2 In
Slide 9: The EDGE Intelligent System
The EDGE Intelligent System Data Collection Data Analytics Building Optimisation For personal use only BMS DATA WEATHER MANAGEMENT ALERTS/FAULTS REPORTING TRIAGE ENERGY + WATER SUSTAINABILITY HEALTH + ANALYTICS REPORTING WELLBEING SENSORS METERS CURATED ACTION ITEMS OCCUPANCY CONSUMPTION BUILDING IN
Slide 10: Comprehensive suite of technical applications and services
Comprehensive suite of technical applications and services The EP&T EDGE product suite provides multiple points of engagement with our customers For personal use only EDGE Essential EDGE Commercial EDGE Insight EDGE Insight+ Need accurate billing for Focused on net zero, recurring Target Need to rep
Slide 11: Energy Savings & Improved Sustainability Ratings
Energy Savings & Improved Sustainability Ratings EDGE has a proven track record of reducing energy consumption, delivering financial savings and improving building sustainability ratings across its client portfolio Annualised energy savings by site – current portfolio 1,2,3 For personal use only • T
Slide 12: Case Study: Edge MARS Alert Example
Case Study: Edge MARS Alert Example – the data drives our offering EP&T’s 24/7 monitoring of multiple data sources and highly accurate identification of energy inefficiencies enables the detection of many more savings opportunities than our peers For personal use only • Previous energy consumption •
Slide 13: Case study: Private Hospital – Proven Results
Case study : Private Hospital – Proven Results Achieving energy reduction and cumulative savings For personal use only 32% Energy Reduction Building Type: Healthcare $740,000 Cumulative Savings This Private Hospital has several state-of-the-art operating theatres, modern private en-suite patient roo
Slide 14: Case study: Major hotel
Case study: Major hotel Achieving energy reduction and cumulative savings For personal use only 25% Energy Reduction Building Type: Hotel $317,000 Cumulative Savings This landmark hotel comprises multiple dining options, cocktail bar, rooftop pool, lounge and bar. EP&T were engaged with the objectiv
Slide 15: Our customer base spanning countries and continents
Our customer base spanning over 26 countries in 5 continents Site numbers continue to grow, monitoring over 8millionsqm of net lettable area 1 and over 1billion kWh annually1 For personal use only Contracted Building #s EUROPE & UNITED KINGDOM • Office in London • 150 sites in United Kingdom and gre
Slide 16: Long-term customer relationships
Long-term customer relationships EP&T’s consistent energy savings and improved building sustainability ratings performance has led to long-term customer relationships ONGOING SITE RELATIONSHIP LENGTH1 (YEARS) For personal use only • Average client relationship of 4.1 years • Average client relations
Slide 17: Global Clients obtaining leading sustainability awards
Global Clients obtaining leading sustainability awards Multiple EP&T clients have won the world’s most prestigious energy efficiency and sustainability awards for the last 10 years. SUSTAINABILITY YEARBOOK S&P Global CSA (form erly DJSI) CapitaLand, Stockland 2023 SUSTAINABILITY AWARD ClubsNSW Club
Slide 18: EP&T Global Financials
For personal use only EP&T Global Financials Continuing growth with near term cashflow breakeven
Slide 19: FY23 Annualised Contract Value (ACV) grew by 9%
FY23 Annualised Contract Value (ACV1) grew by 9% ACV Profile ($m) • At 30 June 2023 ACV is $14.4 million, an increase of $1.1m (9%) from June 2022. $16.0 For personal use only • Current contracts have an average remaining unexpired term of 3 years(2). $14.0 • New contract wins during Financial year
Slide 20: FY23 Annualised Recurring Revenue (ARR) increased by 26%
FY23 Annualised Recurring Revenue (ARR 1) increased by 26% Operating cash flow breakeven2 is now in sight, with ARR of $11.7m being 96% of required ARR For personal use only • ARR1 of $11.7m installed as at 30 June 2023, a 26% $12.2m ARR Projected 2 operating cashflow breakeven 1 increase from 30 Ju
Slide 21: Statutory revenue up 50%
Statutory revenue up 50% Statutory revenue mix changed from predominantly capital in nature to now being 89% recurring • FY23 total statutory revenue of $10.6m, an Statutory Revenue profile FY19 to FY23 For personal use only increase of 50% from FY22: $14.0 • Recurring revenue of $9.4m an increase o
Slide 22: Underlying EBITDA loss reduced by 24%
Underlying EBITDA loss reduced by 24% This has been a turnaround journey from a capital revenue to a recurring revenue business Statutory underlying EBITDA profile FY19 to FY23 • Underlying EBITDA loss improvement by 24% For personal use only $- June_19(A) June_20(A) June_21(A) June_22(A) Jun_23(A)
Slide 23: Outlook: Targeting profitable growth
For personal use only OUTLOOK Targeting profitable growth
Slide 24: EP&T is focussed on profitable growth
EP&T is focussed on profitable growth FY24 focus areas For personal use only • Projected3 Operating Cashflow Breakeven to be achieved when ARR reaches $12.2m. As at 30 June 2023 - $11.7m (96%) Operating Cashflow Break Even2 • ACV backlog, once fully installed, will achieve ARR of $13.5m1 • Operating
Slide 25: Summary
Summary Proven energy saving technology – proprietary technology operating in multiple sectors of commercial real estate continuing to deliver portfolio average of 21% pa energy savings. For personal use only Continued growth in international blue chip client base – EP&T’s clients include leadin
Slide 26: Appendices
For personal use only Appendices
Slide 27: Comprehensive Solution Suite To Support ESG and Sustainability Goals
Comprehensive Solution Suite To Support ESG and Sustainability Goals Energy, Water, edge analyses metered data, using algorithms to identify energy savings opportunities. Clients Gas & Thermal analytics save money and improve sustainability. For personal use only Building Management System (BMS) & e
Slide 28: FY23 – Financial Report
For personal use only FY23 – FINANCIAL REPORT
Slide 29: FY23 Financial Results: Profit and Loss Summary
FY23 Financial Results Profit and Loss Summary • Total Revenue of $10.6 million is a 50% increase on the prior year – Consolidated underscoring the turnaround and demand for EP&T's EDGE product. 30-Jun-23 30-Jun-22 For personal use only • Recurring subscription revenue has increased by 49% to $9.4 m
Slide 30: Operating Cost Management
Operating Cost Management Cost category FY23 commentary FY24 Focus Employee • Employee benefits expenses increased 4.6% to $10.8m. • Full executive team is now in place. expenses • EP&T expenses all employee costs. There is no capitalisation of • Operational efficiency to drive scalability. New hire
Slide 31: FY23 Financial Results: Balance Sheet Summary
FY23 Financial Results Balance Sheet Summary Consolidated • Cash on hand at 30 June 23 = $1.2m 30-Jun-23 30-Jun-22 For personal use only • Current assets include trade receivables of $3.4m, $ $ R&D incentive receivables of $0.4m, inventory of Cash and cash equivalents 1,243,241 4,218,773 $0.7m (equi
Slide 32: FY23 Financial Results: Cash flow Summary
FY23 Financial Results Cash flow Summary • Cash receipts of $12.1 million for FY23 up 55% ($4.3 Consolidated For personal use only million) – reflecting the 50% growth in revenue. 30-Jun-23 30-Jun-22 • Payments to suppliers and employees increased 17% in $ $ FY23. A key focus has been operational ef
Slide 33: Operating cost base has been 'right sized' and is fit for profitable growth
Operating cost base has been ‘right sized’ and is fit for profitable growth Ongoing improvement to performance metrics, positions the entity for scalable growth Category Description FY22 FY23 FY24 focus For personal use only Direct Costs (% Employee and other direct $6.8m $7.1m • FY23 Direct costs r
Slide 34: The world's most trusted building efficiency platform provider
The world’s most trusted For personal use only building efficiency platform provider www.eptglobal.com info@eptglobal.com Sydney – Australia Dubai – Middle East & Africa T: +61 2 8422 6000 T: +971 4 874 7547 London – UK & Europe Hong Kong – Asia T: +44 207 831 7511 T: +852 2831 0999 34