Energy Action Limited · ASX:EAX
Energy Action — H1 FY2013 Earnings Presentation
25 slides from Energy Action's earnings presentation, Feb 19, 2013
Slide 1: Financial Results Presentation for Half-Year Ended 31 December 2012
For personal use only Financial Results Presentation for Half-Year Ended 31 December 2012 1
Slide 2: Contents
For personal use only Contents 1. Business Overview 2. 1H Financial & Operating Highlights 3. 1H Financial Results 4. Operational Performance 5. Outlook 2
Slide 3: 1. Business Overview
For personal use only 1. BUSINESS OVERVIEW 3
Slide 4: Australia's Leading Energy Management Company
Australia’s Leading Energy For personal use only Management Company Australian Energy Formed in 2000, listed on ASX in 2011 Exchange Energy Procurement Proven track record - year on year double digit profit growth and history of paying dividends Created the market for online reverse auctions f
Slide 5: Corporate Snapshot
For personal use only Corporate Snapshot Board of Directors Dr. Ronald Watts Non-Executive Chairman Capital Structure ASX Code EAX Valerie Duncan Managing Director Shares on Issue 25,306,921 Paul Meehan Non-Executive Director Market Cap ($) $85 million Stephen Twaddell Non-Executive Director Share P
Slide 6: 2. Financial & Operational Highlights
For personal use only 2. FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 7: 1H FY13 Financial Highlights
1H FY13 Financial Highlights For personal use only Revenue up 20% to $10.3 million Operating EBITDA1 of $3.5 million - 20% higher Future revenue4 up 13% since 30 June 2012.... to $74.1 million 000’s 1H 13 1H 12 Change Revenue 10,346 8,589 1,757 20% Revenue up 20% to $10.3 million Statutory NPA
Slide 8: 1H FY13 Operational Highlights
1H FY13 Operational Highlights For personal use only • NPAT growth driven by: 1,426 auction scenarios run in the 6 month period – 3.7 million mega watt hours contracted on behalf of corporate customers ($380 million of energy contracts) Increase in auction sites under contract from 8,100 at 30 J
Slide 9: 3. 1H FY13 Financial Results
For personal use only 3. 1H FY13 FINANCIAL RESULTS 9
Slide 10: Income Statement – Profit before tax up 19% vs PCP
Income Statement – Profit before For personal use only tax up 19% vs PCP 000’s 1H FY13 1H FY12 Change $ $ Revenue streams.... Revenue & other income 10,346 8,589 20% Activ8 - $6.1m (up $0.8m) Employee benefits expense 4,949 3,998 24% AEX - $2.4m (up $0.2m) Depreciation and Amortisation 306 256 20%
Slide 11: Delivering Strong Cashflow
For personal use only Delivering Strong Cashflow 000’s 1H FY13 1H FY12 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 10,875 9,181 Driven by 20% revenue growth Payments to suppliers and employees (7,346) (6,151) Acquisition costs (491) - Interest received 102 59 Income tax paid (72
Slide 12: Balance Sheet – Platform for Further Growth
Balance Sheet – Platform for Further For personal use only Growth 000’s Dec 12 Jun-12 $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 6,205 6,758 Strong cash position – post the Trade & other receivables 3,286 2,785 Other assets 297 162 $2m payment for Ward Consulting TOTAL CURRENT ASSETS 9,788
Slide 13: Revenue by Product & Future Income
Revenue by Product & Future Income For personal use only Activ8 accounts for 60% of Revenue split - 1H FY13 revenue, AEX – 25% Ward, 7% Other, 2% Activ8+, 6% Ward Consulting contributed AEX, 25% 7% of revenue in the 1H Activ8, 60% Future income was at a record high $74 million at 31 December 1
Slide 14: 4. Operational Performance
For personal use only 4. OPERATIONAL PERFORMANCE 14
Slide 15: Australian Energy Exchange
Australian Energy Exchange For personal use only • Australian Energy Exchange (AEX) is Energy Action’s unique online reverse auction platform • Energy suppliers competitively bid for a business’s energy needs • 17% increase in sites under contract & future new contracts during 1H FY13 to 9,450 • Car
Slide 16: Activ8 and Activ8+
For personal use only Activ8 and Activ8+ • EAX’s Activ8 product provides energy • Activ8+ provides businesses with efficiency services via automated energy efficiency and sustainability monitoring and contract management consultancy services • Over 7,500 sites under active or future • Activ8+ witnes
Slide 17: Integration of Ward Consulting
For personal use only Integration of Ward Consulting • Energy Action acquired leading energy management business, Ward Consulting Services, in August 2012 • Acquisition has added considerable value to EAX – new revenue streams ($0.8m over 5 months), access to blue-chip customers • Business has been
Slide 18: Review of Sales Function
For personal use only Review of Sales Function Detailed and comprehensive sales review has been completed, aimed at ensuring that the Group’s sales team is structured and incentivised for the next phase of Energy Action’s exciting growth trajectory. The new structure will lay the platform for a
Slide 19: Diversified Customer Base
For personal use only Diversified Customer Base AEX - by industry - 1H FY13 Other 26% Manufacturing 31% Retail Trade 7% Rental, Hiring Mining Accommodation and Real Estate 12% and Food Services Services 8% 16% 19
Slide 20: Case Study – Wallsend Diggers Club
For personal use only Case Study – Wallsend Diggers Club • Wallsend Diggers Club in NSW has more than 18,000 members and has partnered with EAX since 2009 for all their energy needs • The club used the Australian Energy Exchange to secure a new energy contract in 2012 • Results Energy Action has ach
Slide 21: 5. Outlook
For personal use only 5. OUTLOOK 21
Slide 22: Drivers for Growth
Drivers for Growth For personal use only AEX is an unrivalled service offering and a foundation for growth: o Gives EAX access to large potential customer base o Can market complementary services to AEX customers Increased capability and access to clients through acquisition of Ward Consulting S
Slide 23: FY13 Outlook
FY13 Outlook For personal use only Well placed to continue deliver strong double digit revenue and operating NPAT growth for FY13 Company growth continuing despite uncertainty around carbon legislation EAX continuing to invest in business as demonstrated by sales review and ongoing refinement
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Energy Action Limited. 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 offer
Slide 25: Further information
For personal use only Further information Val Duncan Managing Director 02 9633 6403 valduncan@energyaction.com.au Nathan Francis Chief Financial Officer & Company Secretary 02 9633 6405 nathanfrancis@energyaction.com.au 25