Energy Action Limited · ASX:EAX
Energy Action — H1 FY22 Earnings Presentation
22 slides from Energy Action's earnings presentation, Feb 25, 2022
Slide 1: H1 FY22 Half Year Results Presentation
For personal use only H1 FY22 Half Year Results Presentation FEBRUARY 2022
Slide 2: Agenda
2 For personal use only H1 FY22 Results Agenda ► Strategy ► Business Overview ► Group financial results ► H2 FY22 Priorities Energy Action | H1 FY22 Results
Slide 3: Our opportunity
3 Our opportunity For personal use only Foundation Trends Strategy ► Established customer ► Net Zero adoption driven ► Customer retention and growth. base by customers and ► Energy Action’s market share is low ► Relevant products investors relative to our national footprint and ► 20 years experience
Slide 4: Resetting Energy Action
4 Resetting Energy Action For personal use only Balance sheet People Capability ► Increased funding with ► Executive change and ► Marketing capability $1.5m subordinated reduction in established. Director loan (Jan 22) management headcount ► Initiation of work to ► To give business time to ► Sales f
Slide 5: H1 FY22 Financial highlights
5 H1 FY22 Financial highlights For personal use only REVENUE STATUTORY NPAT NET CASHFLOW REVENUE NOT INVOICED $5.69m ($0.34m) ($0.14m) $5m 30% FALL H1 FY21 0.03m 87% INCREASE 19% FALL FUTURE REVENUE OPERATING NPAT OPERATING CASHFLOW NET DEBT $13.56m ($1.09m) $0.70m $4.87m 12% FALL from H1 FY21 ($0.1
Slide 6: Agenda
6 For personal use only H1 FY22 Results Agenda ► Strategy ► Business Overview ► Group financial results ► H2 FY22 Priorities Energy Action | H1 FY22 Results
Slide 7: Income statement H1 FY22
7 Income statement H1 FY22 H1 FY22 H1 FY21 % Variance For personal use only Revenue 5,685,265 8,078,363 -30% COGS (410,643) (403,368) -2% Statutory loss of $0.34m Gross margin 5,274,622 7,674,995 -31% Declined $0.36m from PCP OPEX - excl D&A (5,879,715) (7,347,019) 20% EBITDA (605,093) 327,976 -284%
Slide 8: Balance Sheet H1 FY22
8 Balance Sheet H1 FY22 For personal use only Dec 21 Jun 21 Cash and cash equivalents 2,283 2,423 $5m Revenue not Invoiced Trade and other receivables 1,246 1,431 Auction & SME commissions earned to be collected Current Tax Asset - 152 Other assets 3,397 4,459 Total Non-Current Assets 4,365 4,749 $2
Slide 9: Cash flow statement
9 H1 FY22 H1 FY21 Variance Cash flow statement Operating EBITDA Share based payments & other non-cash (605,092) (3,500) 327,977 4,936 (933,069) (8,436) Unrealised Foreign Exchange revaluation 10 - 10 For personal use only Operating cash flow of $0.7m Working capital movements Before interest and tax
Slide 10: Revenue not Invoiced (RNI) Asset
10 Revenue not Invoiced (RNI) Asset For personal use only Strong asset “Revenue not invoiced” of $5m holds the cash to be received in the future for revenue recognised and work performed in current and previous fiscal periods Balance reduced with invoicing customers not offset by growth in sales ord
Slide 11: H1 FY22 Future Contracted Revenue
11 H1 FY22 Future Contracted Revenue For personal use only Future contracted revenue Future contracted revenue is contracted revenue mostly from energy management subscriptions, and embedded network contracts held off balance sheet • Impacted by 59% reduction decline in Metrics sales contracts • Los
Slide 12: Agenda
12 For personal use only H1 FY22 Results Agenda ► Strategy ► Business Overview ► Group financial results ► H2 FY22 Priorities Energy Action | H1 FY22 Results
Slide 13: Key takeaways
13 Key takeaways For personal use only ► Energy Action has reset 1. Increased liquidity with $1.5m subordinated Director loan in January 2022. Intended to give business time to regain sales and technology momentum 2. Executive change and reduction in management headcount 3. Execution is key. Ongoing
Slide 14: Like to know more about how we can support you?
14 For personal use only Like to know more about how we can support your energy buying and management? Visit energyaction.com.au or email us at info@energaction.com.au Communications by Energy Action Limited and its related bodies corporate (Energy Action) are subject to the terms of Energy Action’s
Slide 15: H1 FY22 Appendix
15 For personal use only H1 FY22 Appendix Energy Action | H1 FY22 Results
Slide 16: Energy Buying
16 Energy Buying Revenue of $1.93m (39% down YoY) For personal use only H1 FY22 H1 FY21 Variance No. of successful AEX auctions 228 450 -49.3% AEX auction volumes down 49.3% from Average AEX contract duration (months) 28.3 30.6 -2.3months PCP despite improved retention rates. TWhs procured via aucti
Slide 17: Energy Management
17 Energy Management Revenue of $3.06 (down 28% YoY) Sites Under Management - Managed Services For personal use only 7,000 6,000 5,000 4,000 5,636 sites currently under 3,000 management 2,000 1,000 Significant decrease in 0 Metrics sales order of 59% Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Slide 18: Embedded Networks
18 Embedded Networks Revenue of $0.70m (increased 5% YoY) For personal use only Sites Under Management - Retail Services 4,000 3,500 3,000 2,500 3,780 sites currently under 2,000 management 1,500 1,000 Increase in sites under 500 management of 151 sites 0 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 De
Slide 19: Operating profit drivers
19 Operating profit drivers Reduction in NPAT driven by For personal use only lower revenue offset by COGS and OPEX savings Financing Higher loan borrowings and higher facility fees Revenue Energy Buying -$1.23m Energy Management -$1.20m Embedded Networks +$0.04m Lower OPEX excl. Tax D&A improved by
Slide 20: Statutory to operating profit reconciliation
20 Statutory to operating profit reconciliation For personal use only NPAT EBITDA H1 FY22 H1 FY21 Variance H1 FY22 H1 FY21 Variance Statutory results (340,372) 26,036 (1,407%) 192,359 569,166 (66%) Add back significant Items after tax: ATO Interest3 46,767 - (100%) - - - Restructuring Costs 105,036
Slide 21: Energy Action Market Share
21 Energy Action Market Share Australian Business Energy Market For personal use only Energy Action has <2% share of SME SME 20 TWh Energy Action has ~10% share of Mid Large Market procurement Industrial 50 TWh Mid Market 50 TWh Notes: 1. Energy Action own estimate based on market size of 120 TWh 2.
Slide 22: Disclaimer
22 Disclaimer. For personal use only This presentation has been prepared by Energy Action LimitedABN: 90 137 363 636. 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