Energy Action Limited · ASX:EAX
Energy Action — FY2015 Earnings Presentation
34 slides from Energy Action's earnings presentation, Aug 18, 2015
Slide 1: Financial Results Presentation for the year ended 30 June 2015
For personal use only Financial Results Presentation for the year ended 30 June 2015 Presented by Mr Scott Wooldridge Chief Executive Officer Energy Action Limited Mr Michael Fahey Chief Financial Officer Energy Action Limited 1
Slide 2: Contents
Contents For personal use only 1. Financial Results 2. Operational Performance 3. Integration Update 4. Outlook and FY16 Priorities 2
Slide 3: Financial Results
3 For personal use only Financial Results
Slide 4: FY15 Financial Highlights
FY15 Financial Highlights For personal use only • Revenue of $32 million up 25% driven by the acquisition of Energy Advice and modest organic growth • Disappointing Operating NPAT of $2.7 million (down 41% vs FY14) impacted by lower Activ8 revenue, PAS product mix and bad debt write-offs • Positive
Slide 5: Operational highlights FY15
Operational highlights FY15 Positives For personal use only • Completed acquisition of Energy Advice August 2014 • Launch of the WA Auction platform December 2014 • Launch of the Customer portal January 2015 • Energy Action PAS division designed Chifley Tower upgrade received global recognition • De
Slide 6: Statutory to Operating Profit reconciliation
Statutory to Operating Profit reconciliation 30 June 30 June 30 June 30 June For personal use only $000’s 2015 2014 % var 2015 2014 % var Operating profit after tax EBITDA Statutory results after tax (2,147) 3,512 -161% 100 6,030 -98% Adjust for the following items: Employee share based payments 294
Slide 7: FY15 Operating NPAT – Change versus FY14
FY15 Operating NPAT – Change versus FY14 • Energy Advice (EAD) For personal use only $8,000,000 EBITDA contribution of $7,000,000 $480K • PAS revenue driven by $6,000,000 a full year of Exergy and higher project $5,000,000 revenue • Activ8 revenue down $4,000,000 due to early termination of two $3,0
Slide 8: Operating NPAT at $2.7 million down 40%
Operating NPAT at $2.7 million down 40% Impacted by lower than anticipated revenue growth, mix of business and one-time write-offs For personal use only Variance FY15 FY14 % Revenue 32,059,215 25,655,147 25% COGS -5,413,726 -2,288,337 137% Revenue up 25% Gross Margin 26,645,489 23,366,810 14% Opex -
Slide 9: Revenue growth driven by acquisition
Revenue growth driven by acquisition Revenue up 25% versus prior period Variance For personal use only FY15 FY14 Variance % AEX Gas 621,714 502,003 119,711 24% AEX Electricity 4,532,905 4,334,790 198,115 5% • Higher procurement revenues Administration Fees 429,987 237,110 192,877 81% due to higher v
Slide 10: Solid improvement in EBITDA to Operating Cash Flow conversion
Solid improvement in EBITDA to Operating Cash Flow conversion For personal use only FY15 FY14 Statutory net cash provided by operating activities 2,564,520 4,454,098 Cash flow relating to Significant Items 1,472,973 440,596 Underlying cash flow before Significant Items 4,037,493 4,894,694 Net financ
Slide 11: Debt structure and key financial ratios
Debt structure and key financial ratios EAX entered into a 5 year, $12 million multi-option facility agreement in October 2014 For personal use only • Can be utilised for borrowings, bank guarantees or letters of credit • Current utilisation comprised of $4.1 million loan and $6.284 million in bank
Slide 12: Future Contracted Revenue resumes growth trend
Future Contracted Revenue resumes growth trend $75.8 million as at June 2015 vs $74.5 million as at June 2014 For personal use only Future Contracted Revenue Future Contracted Revenue realisation year FY16 - $24.6 million Future contracted revenue slightly up versus prior year despite the loss of se
Slide 13: Operational Performance
For personal use only Operational Performance 13
Slide 14: Executing against strategy
Executing against strategy For personal use only Revenue increase of 25% Actionable Customer Insights Data Integrity & Completeness Trusted Partner Launch of Client Portal Acquisition of EnergyAdvice January 2015 August 2014 Enhancement of the Australian Integration Progress for Exergy and Energy Ex
Slide 15: Energy Procurement
Energy Procurement • The Australian Energy Exchange 2015 2014 Variance For personal use only (AEX) is Energy Action’s online reverse auction platform. No of Auctions1 1,882 1,406 33.85% Average contract duration 24.4mth 26mth -6.15% • Energy suppliers competitively bid MWhs procured via Auction2 2.1
Slide 16: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only • Activ8 platform provides contract management services via automated monitoring and reporting • EnergyAdvice provides an aligned service called EnergyMetrics • Key Customer deliverables are: • Monthly Bill Verification • Annual Tariff Rev
Slide 17: Contract Management & Energy Reporting
Contract Management & Energy Reporting Service Offer 2015 2015 2014 2014 No. of active2 Annual No. of active2 Annual For personal use only contracts contract contracts contract value value Activ8 Gold1 4,916 $2,680 5,128 $2,585 Activ8 Silver1 188 $2,225 129 $2,110 Activ8 Bronze1 132 $1,493 158 $1,26
Slide 18: Projects & Advisory Services
Projects & Advisory Services FY15 Revenue ($) For personal use only • Efficiency and sustainability consultancy services provided by engineers and commercial specialists across a range of energy efficient technologies Project Mgt • Projects includes Commercial Solar, PFC, and Projects, Engineering,
Slide 19: PAS - Marquee Projects Delivered
PAS - Marquee Projects Delivered • 46 Power Factor Projects Delivered successfully For personal use only • Chifley Tower received global recognition “Council on Tall Buildings and Urban Habitat’s 2015 Performance Award” • Secured largest ever project, $1.6m Mercure Hotel building services upgrade •
Slide 20: Integration update
20 For personal use only Integration update
Slide 21: Focus on completing integration to drive profitability
Focus on completing integration to drive profitability For personal use only • Delivering on key strategic intent – consolidating the brokerage market • Management teams integrated and new management structure announced • Office locations rationalised in Sydney, Melbourne & Brisbane Focus for FY16 •
Slide 22: Outlook and FY16 priorities
For personal use only Outlook and FY16 priorities 22
Slide 23: FY2016 Priorities
FY2016 Priorities For personal use only Focus on two key areas to drive profit growth in FY16 Expanding Customer Reach Operational Improvements Launch Activ8 platinum Realise cost synergies from restructure Launch upgraded Lucida building Increase PAS utilisation efficiency offering Portfolio servic
Slide 24: Further information
Further information For personal use only Scott Wooldridge Chief Executive Officer 02 9633 6471 scott.wooldridge@energyaction.com.au Michael Fahey Chief Financial Officer 02 9633 6405 michael.fahey@energyaction.com.au 24
Slide 25: Appendices
25 For personal use only Appendices
Slide 26: Business Overview
26 For personal use only Business Overview
Slide 27: We are a leading energy management consultancy
We are a leading energy management consultancy For personal use only • Created the market for online reverse auctions for electricity – settled approximately $7 billion worth of electricity contracts since 2009 • Market leading energy management capabilities across procurement, monitoring and Projec
Slide 28: Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle
Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle For personal use only 28
Slide 29: Our Strategy: Create a Unique Market Position
Our Strategy: Create a Unique Market Position For personal use only Data Integrity & Completeness We have a comprehensive, transparent view of the market and the past, current and (potentially) future energy use within our client base that provides a high degree of market certainty for all participa
Slide 30: Executive Team
Executive Team Scott Wooldridge use only Chief Executive Officer Paul Cooper Paul Bannister Michael Fahey Service Delivery and Operations Sales Director Projects & Advisory Chief Financial Officer Services Director Corporate Functions Client Management Martin Becker David Rylah Madeline Sedrak For p
Slide 31: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure 12mth Share Price Performance ASX Code EAX Shares on Issue 25.9 million Market Cap (30 Jun 2015) $23.9 million Share Price $0.90-$3.24 (52 week High/Low) Shareholders 704 Top 20 holding 84.2% Board of Directors Substantial Shareholders % Dr.
Slide 32: Balance Sheet reflecting impact of acquisitions
Balance Sheet reflecting impact of acquisitions FY15 FY14 Current Assets For personal use only Cash & Cash equivalents 1,740,288 4,556,558 Reduction in cash following acquisition's Restricted Cash 1,000,000 1,000,000 Trade & other receivables 5,868,825 5,293,181 Other assets 1,168,986 1,258,455 Tota
Slide 33: Operating cash flow reflects M&A related outflows
Operating cash flow reflects M&A related outflows FY15 FY14 Variance CASH FLOWS FROM OPERATING ACTIVITIES For personal use only Receipts from customers (inclusive of GST) 34,560,207 26,202,219 8,357,988 Payments to suppliers and employees (inclusive of GST) -28,633,362 -20,234,046 -8,399,316 Excludi
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Energy Action Limited ABN: 90 137 363 636. For personal use only 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