Slide 1: Energy One Limited (ASX:EOL) Full year results FY22
Energy One Limited (ASX:EOL) Full year results FY22
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 Energy One 4 Financials 7 Operational review 19 Company outlook 27 Guidance for FY23 33 Appendices 34 3
Slide 4: Energy One - a profitable Software & Services company
• Energy One Limited (ASX:EOL) is a leading Energy One independent global supplier of Energy Trading - a profitable software systems and market operating services. Software & • Hybrid business model of recurring revenue (80%-85%) and project T&M (10%-15%) Services • Solutions for the trading of ener
Slide 5: Supplying large blue chip companies in essential industries
Supplying large Our customers are often large: • Utilities – such as power stations and blue chip vertically integrated retailers companies in • Infrastructure providers – such as gas pipelines, electricity transmission essential Include new generation sources such as wind, industries solar and batt
Slide 6: Software and services that are facilitating the renewable energy revolution
Software and • A massive amount of renewable energy is coming to markets globally. services that are facilitating the • In Australia (since 2015), 94% of new electricity generation has been via renewables (wind, solar renewable etc) and Europe is similar. energy • Increasingly this energy will be su
Slide 7: Financial results
Financial results energyone
Slide 8: 9th consecutive year of profitable growth
th 9 consecutive year of profitable growth AUD FY22 FY21 Change Revenue $32,401,000 $27,902,000 16% EBITDA* $9,376,000 $8,130,000 15% EBITDA margin* 29% 29% - 0% NPAT* $4,359,000 $3,763,000 16% Revenue was up 16% to $32.4M • Notably one-off project revenue was down for the year $2.7M FY22 vs $4.9M F
Slide 9: Revenue growth has been both organic and from acquisitions
Revenue growth has been both organic and from acquisitions $35,000,000 $30,000,000 $25,000,000 $20,000,000 54% $15,000,000 $10,000,000 46% $5,000,000 $- FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Australia Europe 9
Slide 10: Recurring revenue continues to grow
Recurring revenue continues to grow $35,000,000 Travel restrictions have impacted one off $30,000,000 project revenue $25,000,000 CAGR 42% $20,000,000 $15,000,000 Recurring revenue continued to grow accounting for 92% of revenue in FY22. Over the last 5-years the CAGR in recurring revenue has been 4
Slide 11: Normalised EBITDA grew by 15% in FY22
Normalised EBITDA grew by 15% in FY22 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 1H 2H * Normalised for one off acquisition & structuring costs of $846k before tax ($776k after tax)
Slide 12: Over the last five years growth in revenue has averaged 45% p.a. and EBITDA 48% p.a.
Over the last five years growth in revenue has averaged 45% p.a. and EBITDA 48% p.a. $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY 2022 Revenue EBITDA 12
Slide 13: The reduction in one-off project revenue during FY22 as a result of travel restrictions
The reduction in one-off project revenue during FY22 as a result of travel restrictions has already begun to improve • Large trade shows such as E- World which have been suspended for 2 years started again in June 2022 • Travel restrictions that have held back our ability to meet large potential cus
Slide 14: After one-off acquisition costs, normalised NPAT continues to grow
After one-off acquisition costs, normalised NPAT continues to grow $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 * Normalised for one off acquisition & structuring costs of $846k before t
Slide 15: On a normalized basis NPAT grew 16%, statutory basis NPAT was flat
On a normalized basis NPAT grew 16% on a statutory basis NPAT was flat $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- PA T nue Tax os ts se s os ts tion se s v el PA T 1 N e ve ct c p en ec tisa xp en T ra 2 N 202 R roje r ex ye or e
Slide 16: The timing of acquisitions has impacted EPS
The timing of acquisitions has impacted EPS $0.160 $0.140 EPS after one-off $0.120 acquisition and structuring costs $0.100 $0.080 $0.060 $0.040 $0.020 $- FY17 FY18 FY19 FY20 FY21 FY22 EPS Dividend per share • Statutory EPS down due, in part, to the issuing of 1,195,000 shares during FY22 for two ac
Slide 17: Sticky customer base…
Sticky customer base… FY 19 FY 20 FY 21 FY 22 ARR $13.0M $20.3M $28.9M $36.8M Customer-installs 143 205 230 346 Churn 3.8% 4.1% 2.9% 2.3% Average LTV/customer $1.5M $1.7M $2.5M $2.9M LTV/CAC 11.7 14.8 28.9 29.4 Typical contract length 1-5 year initial term, then annual renewals Gross margin 60% 59%
Slide 18: EOL continues to exceed the rule of 40
EOL continues to exceed the rule of 40 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY 2022 Revenue growth rate EBITDA margin 18
Slide 19: Operational review
Operational review energyone
Slide 20: Australia and Europe
Australia • Australian revenue up 6% despite drop in project revenue • However, organic ARR grew by ~16% in the year. • Recurring revenues were up 13% • EBITDA margin remained strong (up from 31% to 32%). • Good sales pipeline. Need to sign 1-2 projects each year (20% project related revenue) • In J
Slide 21: Management has focused on accelerating the strategic plan and the acquisition pipeline
Over the last year management has focused on accelerating the strategic plan and the acquisition pipeline Diversification Grow customer base Invest in new products Grow by acquisition • Battery software Target a larger Cross-sell products number of smaller • Combine products Acquire complementary cu
Slide 22: As a result we successfully completed two acquisitions in FY22
As a result we successfully completed two acquisitions in FY22 During the year we made two strategically important acquisitions. 1) EGSSIS acquired in December 2022, based in Aalst in Belgium; and 2) CQ Energy acquired in April 2022, based in Adelaide Australia. Both acquisitions now place us at the
Slide 23: The full financial impact of these two acquisitions will not be evident until FY23
The full financial impact of these two acquisitions will not be evident until FY23 Acquisition Pro forma 12 Month ($AUD) Acquisition Status Contribution to Revenue EBITDA FY22 Egssis $5.9 $1.0 Complete 01/12/21 7 months CQ Energy $7.0 $4.5 Complete 26/04/22 2 months Total $12.9 $5.5 The timing of th
Slide 24: ETRM Software and services offering
Combining our software with a premium service offering gives us an enviable position in facilitating the entry of renewable energy into national electricity markets SaaS Services Algo trading software Managing the bidding and ETRM Software Auto bidding Energy Services scheduling of software decentra
Slide 25: Services to generate high quality revenue with majority of revenue recurring
Services to generate high quality revenue with majority of revenue recurring The business model being used in the 24/7 Services business generates strong recurring revenue similar in size to our traditional SaaS business model. We anticipate (long term) ~80% of the revenue generated from our service
Slide 26: We see two interlinked business segments going forward: Software and Services
We see two interlinked business segments going forward: Software and Services With the energy market changing so quickly we have seen the emergence of a new rapidly growing segment, the provision of energy services. Having observed the emergence of this new market in both Europe and Australia we hav
Slide 27: Outlook
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Slide 28: The two acquisitions now provide a platform for a global 24/7 energy services business
The two acquisitions in FY22 now provide a robust platform to develop a global 24/7 energy services business Building on the operational energy services already provided by eZ-nergy, the two acquisitions in FY22 now provide the group with two 24/7 control rooms and trading operations in Europe and A
Slide 29: Market for operational energy services will be in excess of $1billion in the next 5-10 years
We estimate the rapidly expanding market for operational energy services will be in excess of $1billion in the next 5-10 years To reach Net Zero by 2050 will require the electrification of the transportation system. This will require 4x as much installed generation capacity as exists today. Internal
Slide 30: Our competitors aren't focused on the physical side of wholesale energy markets
Our competitors aren’t focused on the physical side of wholesale energy markets Our traditional competitors typically focus on ETRM software to manage financial derivatives. For a long time we have also focused on the physical side of energy markets offering dispatch and scheduling software to provi
Slide 31: Energy One intends to capitalise on our first mover advantage
As such Energy One intends to capitalise on our first mover advantage investing in additional capability • Energy One will invest in increased capability to provide a robust, industry leading, global 24/7 software and operational services business. • While we already have a global capability we will
Slide 32: Modelling shows solid returns on investment
Modelling shows solid returns on investment • Internal modelling shows the investment will break even after three years under the conservative scenario of a 3% increase in revenue, with ROI’s in excess of 500% modelled on a 10% uplift in revenue • The investment will also: • Help win customers for t
Slide 33: Guidance for FY23 after making investment for future growth
Guidance for FY23 after making investment for future growth $50,000,000 $45,000,000 Guidance: Revenue up 37% over FY22 to ~$44M $40,000,000 EBITDA up 33% over FY22 to ~$12.5M $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- FY 2017 FY 2018 FY 2019 FY 2020 FY2021
Slide 34: Appendix
Appendix Additional information 34
Slide 35: Many energy market participants use EOL group software
Many energy market participants use EOL group software Exchange Traded Electricity Derivatives Energy Generators: Consumers - Solar farms (Domestic) - Wind farms Spot Market Traded energy - Hydro for Electricity Energy - Batteries Retailers/ - Coal fired OTC Contracts, PPA’s Suppliers - Gas fired Gr
Slide 36: A comprehensive suite of software and services
A comprehensive suite of software and services Physical Bidding ETRM Business Process Automation Allows a power station to bid it’s Contract management for recording Many systems and contracts in energy electricity (quantity, price, time and physical trades (PPA’s) and financial markets can be very
Slide 37: EOL group software makes life easier
EOL group software makes life easier Participant Challenges faced EOL group solutions 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 sp