Energy One Limited · ASX:EOL
Energy One — Merger or Acquisition (November 2022)
36 slides from Energy One's merger presentation, Nov 1, 2022
Slide 1: Acquisition of EGSSIS
Energy One Limited (ASX:EOL) Acquisition of EGSSIS al use only
Slide 2: Disclaimer
Disclaimer This document has been prepared by Energy One Limited (EOL) and comprises written materials and slides for a presentation concerning EOL. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispos
Slide 3: Contents
Contents About Egssis 6 Financials 18 al use only Strategy 22 Appendix 28 3
Slide 4: Energy One signs share purchase agreement to acquire 100% of EGSSIS
Energy One is pleased to announce it has signed a share purchase agreement to acquire 100% of EGSSIS al use only 4
Slide 5: Expanding our presence in Europe
al use only Expanding our presence in Europe Based in Belgium, EGSSIS (pronounced “egg-sis”) is an established, profitable company. The acquisition will be funded using existing facilities, internal funds and equity issued to the vendors. As such the transaction will be immediately earnings accretiv
Slide 6: About Egssis
About Egssis Established in 2008, Egssis is based in Aalst, Belgium. The company is a leading vendor of energy trading solutions focusing on gas and al use only power scheduling and short-term portfolio balancing for European markets. Egssis provides SaaS software and “on behalf of” 24x7 scheduling
Slide 7: A strategic acquisition placing us at the forefront of European scheduling markets
al use only A strategic acquisition placing us at the forefront of European scheduling markets Combining Egssis with eZ-nergy and Contigo will place the company at the forefront of the European Gas and Power Trading, Scheduling and Nominations markets. While there are around 10 vendors of trading so
Slide 8: Combining eZ and Egssis will create a strong competitive force in 24/7 services
Combining eZ and Egssis will create a strong competitive force in the 24/7 services market eZ Egssis eZ+Egssis GMSL Staff 25 28 53 95 al use only Software licenses 59 55 114 80 24/7 Services customers 10 19 29 50 The majority of customers in the 24/7 services market (around 70%) still use in-house D
Slide 9: Covering all the bases and providing real time energy trading solutions
Covering all the bases and providing real time energy trading solutions for European markets Market type Forward Day ahead Real time al use only Task Contracts & Balancing Portfolio Scheduling/ Intraday/ Derivatives optimisation Nominations algo-trading eZ + Egssis Software & 24/7 services Algo-trad
Slide 10: Algo-trading and business process automation are exciting opportunities
Algo-trading and business process automation are exciting opportunities to win market share al use only Combining algo-trading and business process automation will be a major product differentiator in the 24/7 services market. These additional services will appeal not only to customers with DIY syst
Slide 11: Group well positioned in Europe's real time energy markets
The Energy One group is now well positioned in Europe’s dynamic, fast paced, real time energy markets al use only Moving gas and scheduling electricity in the middle of the night - to ensure supply is where it’s needed, when its needed. 11
Slide 12: The merger of eZ and Egssis will improve our offering to customers
al use only The merger of eZ and Egssis will improve our offering to customers • Combining eZ+Egssis will bring modern efficient services to European energy market participants. • Great products, wide coverage and services for the fast paced, 24/7 real-time markets • Egssis and eZ are proud of the s
Slide 13: Egssis increases our reach and coverage of European energy markets
Egssis increases our reach and coverage of European energy markets al use only Egssis increases geographic coverage and commodity offering. The group now offers software and services for: • Gas in 17 countries (previously 11) • Electricity in 12 countries • Day ahead markets • Intraday markets • 3 m
Slide 14: Numerous operational and technical synergies
Numerous operational and technical synergies… The technology stack for Egssis, Contigo’s and eZ is very similar, allowing easier integration and al use only sharing of functionality, tools and development resources. Potential for sharing: • 24/7 services teams • Support teams • Consulting, QA and De
Slide 15: Synergies to flow over two years
al use only A strategic acquisition with synergies to flow over two years in order to realise the full scope of what we are trying to achieve • As mentioned to maximise synergies, integration is expected to take ~24 months. • This acquisition is not just about operational synergies. We will use our
Slide 16: Excellent management with strong cultural fit
Excellent management with strong cultural fit al use only • The executive and technical team at Egssis are of a very high calibre. • Culturally, the management teams across our three European businesses are a good fit • Management teams at both Contigo and eZ are excited about the opportunity of mer
Slide 17: Placing us at the heart of the emerging 24/7 services market
A strategic acquisition placing us at the heart of the emerging 24/7 services market The acquisition: • Expands our reach into new European markets al use only • Increased market share in the 24/7 scheduling and nomination services • A strong competitive advantage by: – combining with eZ’s algo-trad
Slide 18: Transaction financials
Transaction financials al use only 18
Slide 19: Cost of acquisition is €4.25M
Cost of acquisition is €4.25M over 18 months Euro AUD Consideration Payable €2.5M $4.1M Cash On Completion al use only €0.75M $1.2M Equity On Completion €0.5M $0.8M Cash 12 months post completion €0.5M $0.8M Cash 18 months post completion €4.25M $6.8M Total Consideration EBITDA multiple paid is 7x b
Slide 20: Immediately earnings accretive with synergies continuing beyond two years
The acquisition is immediately earnings accretive but synergies will continue for >2yrs Proforma FY23 Euro AUD al use only Revenue €3.7M ~$5.9M EBITDA €0.6M ~$1M Looking forward to the next full financial year, FY23, we expect Egssis will generate income of approximately AUD$5.9M and EBITDA of AUD$1
Slide 21: A strong balance sheet means the acquisition can be self funded
A strong balance sheet means the acquisition can be self funded from internal cashflows al use only • We will utilize the existing Westpac debt facility which is currently undrawn. Facility sees debt amortising over 5-years • Cash : the company currently has $5.2M in cash • Equity : will be issued t
Slide 22: Strategy
al use only Strategy 22
Slide 23: Rapidly changing energy markets are presenting new growth opportunities
Rapidly changing energy markets are presenting new growth opportunities • Energy markets are decarbonising and decentralising. In the future there will be fewer large generation units and more distributed energy resources. • For example rather than a single 2,500MW thermal coal generator there might
Slide 24: Scheduling distributed energy resources in electricity networks can be difficult
Scheduling distributed energy resources in electricity networks can be difficult al use only • The growing share of green distributed power generation increases the complexity in both the European and Australian energy markets • Given the smaller size of distributed energy resources it is often unec
Slide 25: Launching a new product offering selling software with a service
Launching a new product offering to address this rapidly growing market by selling software with a service • We intend expanding the types of services currently provided by eZ-nergy and Egssis. • Aspiring to a global 24/7 operations function to complement our software al use only • Our automation so
Slide 26: Following the sun to provide global 24/7 operational coverage
Following the sun to provide global 24/7 operational coverage of energy markets al use only 26
Slide 27: Evidence of successful execution of our long-term strategy
The results are evidence of the successful execution of our long-term strategy Diversification Grow customer base Invest in new products al use only • 5min settlement Grow by acquisition Cross-sell products Geographic expansion • eZ, Egssis and Contigo • Expand into new Acquire complementary solutio
Slide 28: Mr Shaun Ankers - CEO and Managing Director
al use only Mr Shaun Ankers - CEO and Managing Director Email: enquiries@energyone.com Level 13, 77 Pacific Highway North Sydney NSW 2060 +61 2 8916 2200 28
Slide 29: Appendix
Appendix Additional information al use only 29
Slide 30: Egssis software is modern, scalable and built on a strong technology framework
Egssis software is modern, scalable and built on a strong technology framework Egssis software comprises three modules all of which are mature and highly functional: • Cosmos - Market Communications Software that provides a solution for gas and power al use only messaging across Europe towards TSO’s
Slide 31: Energy One independent global supplier of ETRM software systems and services
• Energy One Limited (ASX:EOL) is a leading Energy One independent global supplier of Energy Trading - a profitable and Risk Management (ETRM) software systems and services. SaaS & • Hybrid business model of recurring (SaaS) Services revenue (80%) and project T&M (20%) al use only company • Solution
Slide 32: Supplying large blue chip companies in essential industries
Supplying large Our customers are often large: blue chip • Utilities – such as power stations and vertically integrated retailers companies in • Infrastructure providers – such as gas pipelines, electricity transmission essential al use only • Include new generation sources (such as wind industries
Slide 33: EOL's software tools help customers manage risk and volatility
EOL’s suite of software tools are used by customers to manage their exposure to risk and volatility al use only Our software is used to trade and manage both physical energy and derivative contracts either bilaterally (B2B) or on public exchanges. 33
Slide 34: Many energy market participants use EOL group software
Many energy market participants use EOL group software Electricity Exchange Traded Generators: Derivatives Energy - Solar farms al use only Consumers Traded energy - Wind farms Spot Market (Domestic) - Hydro for Electricity Energy - Batteries Retailers/ - Coal fired - Gas fired OTC Contracts, PPA’s
Slide 35: A comprehensive suite of software
A comprehensive suite of software Physical Bidding ETRM Business Process Allows a power station to bid it’s Contract management for Automation recording physical trades (PPA’s) al use only electricity (quantity, price, time and financial derivatives (Swaps, Many systems and contracts in and place) i
Slide 36: EOL group software makes life easier
EOL group software makes life easier Participant Challenges faced EOL group products Generators Accurate, compliant energy spot market bidding and nominations ü Efficiently dispatching generation ü Energy operations (B2B, bid preparation, monitoring, compliance) ü Hedging output against volatile spo