Locality Planning Energy Holdings Limited · ASX:LPE
Locality Planning Energy — Merger or Acquisition (July 2015)
17 slides from Locality Planning Energy's merger presentation, Jul 21, 2015
Slide 1: Investor Update Presentation
21 July 2015 ASX ANNOUNCEMENT INVESTOR UPDATE PRESENTATION Stratum Metals Limited (ASX:SXT) (Stratum) is pleased to provide the attached Investor Update regarding the energy retailer Locality Planning Energy Pty Ltd (LPE). As announced on 2 July 2015, Stratum has entered into an exclusive option agr
Slide 2: July 2015
July 2015
Slide 3: Disclaimer
Disclaimer This presentation contains summary information about Locality Planning Energy Pty Ltd (LPE) and is current as at 30 June 2015. The information in this presentation is of general background and does not purport to be complete. This presentation is not investment or financial product advice
Slide 4: LPE is the iiNet of the Electricity Retailer Market
LPE is the iiNet of the Electricity Retailer Market • 1 of only 23 active electricity retailers authorised by the Australian Energy Regulator (AER) • LPE has a UNIQUE purchasing model matched against 5 to 10 year supply contracts with customers • Low risk business model • Targeting 10% of the Nation
Slide 5: How Big is the NEM?
How Big is the NEM? • More than 200,000GW is traded annually on the NEM • $37 billion worth of electricity traded through retailers on the NEM Energy Breakdown by Sector (NEM) Strata 10% Commercial / SME 32% Residential 18% Industrial 40% The National Electricity Market Regional Network Source: AEMO
Slide 6: Target Market
Target Market • Strata communities = 20,000GW • LPE’s Initial Target = 400GW (just 2% of Target Market) Percentage of strata dwellings versus detached by location 31% of residential dwellings on NEM are strata communities 12% Regional Areas 31% 32% Suburban Areas 98% Inner City Areas 5
Slide 7: Immediate Target Market
Immediate Target Market South East QLD (SEQ) • ~9,400 target strata communities • ~4,700GW Target strata communities have a minimum of 30 lots and use a total of 0.5GW pa (average) Queensland • ~15,500 target strata communities • ~7,750GW Source: 6
Slide 8: Business Model
Business Model • LPE’s supply structure provides an energy purchase model that significantly reduces the network charges and risk to the retailer • Savings passed onto customers without discounting LPE’s margin • Customers on 5 to 10 year supply contracts 2.6% 31% Saving Saving 100.0% 90.0% 13.3% 10
Slide 9: Business Plan
Business Plan Initial target • 800 strata communities under management • Average 0.5GW per strata community = 400GW Current progress (July 2015) • 25 Strata communities under contract to supply or in the Site Conversion conversion process in SEQ market Daily Service 6.3% 10.4% Retail • Currently ave
Slide 10: Business Plan cont'd
Business Plan cont’d Additional capital will provide opportunity to accelerate Initial Target timetable and GW sales volume through: • Increase sales and operational process teams • Support growing site conversion funding requirements (equity vs debt) • Ability to acquire billing administrator’s exi
Slide 11: Marketing Plan
Marketing Plan Current pipeline • 391 existing strata communities and 13 new strata developments at various stages in the negotiation process • ~170GW or 42½% of Initial Target (assuming 80% conversion) Marketing initiatives • Become active associate member of Strata Community Australia (SCA), the p
Slide 12: Future Growth Opportunities
Future Growth Opportunities • Expansion into strata communities market in NSW, VIC and SA • Embedded Networks structure applied to hot water systems • Exploiting new technology inherent to electricity • Car chargers and electric vehicle infrastructure • Batteries and renewables • Database and inform
Slide 13: Directors/Management (Post acquisition by Stratum)
Directors/Management (Post acquisition by Stratum) Andrew Pierce – Chairman Current Chairman of Stratum, accomplished and highly regarded accountant and director on various boards, with specific skills in financial reporting, company regulatory and governance areas. Fellow of the Institute of Charte
Slide 14: Indicative Capital Structure
Indicative Capital Structure Post acquisition of LPE by Stratum: Convertible Performance Shares Options Loans/Notes Shares $ Current 236,140,512 56,699,104 1,500,000 Conversion of Notes and Loans 70,474,349 48,337,585 (1,500,000) plus interest1 2 Capital Raising3 200,000,000 - Sub-Total 506,614,861
Slide 15: Summary
Summary • LPE is the iiNet of the Electricity Retailer world • 1 of only 23 active energy retail authorisations with the AER • LPE has a UNIQUE purchasing model matched against 5 to 10 year supply agreements with customers • Business model provides consistent trailing revenues • Targeting strata com
Slide 16: Annexure A
Annexure A Billing and Sales Software • Dedicated billing platform licensed with proprietary IP • Proprietary sales and operational process software developed by LPE 15
Slide 17: Annexure B
Annexure B National Energy Market 16
Locality Planning Energy — Merger or Acquisition (July 2015) on 6ix