Energy Action Limited · ASX:EAX
Energy Action — Investor Presentation (February 2020)
24 slides from Energy Action's investor presentation, Feb 26, 2020
Slide 1: Group Financial Results H1 FY20
Group Financial Results H1 FY20 | 26 February 2020 John Tracy Huggart Bucciarelli Chief Executive Officer Chief Financial Officer Energy Action Limited Energy Action Limited
Slide 2: H1 FY20 results agenda
2 H1 FY20 results agenda Results Group Financial Highlights Results John Huggart Tracy Bucciarelli Operational H2 FY20 Performance Priorities John Huggart John Huggart
Slide 3: Financial highlights
3 Operating cash Operating Operating costs & Financial flow of loss of COGS reduced by highlights $1.34m EBITDA to cash $0.15m Operating profit $0.89m $1.9m Reduced 16% during the conversion of 246% FY19 H1 period Operating Statutory Nil interim EBITDA of NPAT loss of dividend declared $0.55m $0.29m
Slide 4: Group Financial Results
4 Group Financial Results “We couldn’t be happier with the service and results provided by Energy Action. …The savings we secured are going to help fund some exciting community initiatives and give us an opportunity to look into energy efficiency projects as well.” Sue McNeill
Slide 5: Income statement H1 FY20
5 Income statement H1 FY20 H1 FY19 % Variance H1 FY20 Revenue COGS 10,418,670 905,654 13,545,009 1,812,374 (23%) 50% Gross margin 9,513,017 11,732,635 (19%) Revenue decline 23% from Opex - excl D&A 8,967,739 9,976,403 10% ^ EBITDA 545,278 1,756,232 (69%) FY19 H1 Depreciation and amortisation 544,583
Slide 6: Operating profit drivers
6 Operating profit drivers 23% reduction in revenue offset with saving in COGS and OPEX resulting in 117% lower NPAT 1,500,000 Lower OPEX excl. 885,171 3,126,338 D&A improved by 10% 1,000,000 500,000 Decline in D&A offset 168,308 by implementation of 0 AASB16 leases 33,947 -148,213 -500,000 Revenue
Slide 7: Cash flow statement
7 H1 FY20 H1 FY19 Cash flow Operating EBITDA 545,278 1,756,232 Share based payments 2,313 (128,200) statement Trade debtors Other debtors 765,909 (86,013) (10,013) 114,584 Work in progress 516,724 191,807 Strong operating cash flow Revenue not invoiced 401,559 538,720 before interest and tax $1.34m
Slide 8: Debt structure and key financial ratios
8 Jun 19 Dec 19 Debt structure 10,000,000 Cash Unrestricted and key financial 9,000,000 Liquidity: Unutilised Credit card facility ratios 8,000,000 Liquidity: $4.91m $4.43m Non cash guarantees Borrowings 7,000,000 Prudent financial management 6,000,000 of cash and debt 5,000,000 2-year, $9.55m marke
Slide 9: Operational Performance
9 Operational Performance “Quick, easy and insightful. Business consultant was helpful and provided clear, concise information, and was able to clarify all questions.” Finance Manager
Slide 10: Segment performance
10 Segment performance Overall revenue of $10.42m – declining 23% with different drivers and progress by segment Contract Management Procurement and Environmental Reporting Advisory Services Key drivers Key drivers Key drivers • $3.13m 10% lower auction volume despite 36% less retention $6.22m • Poo
Slide 11: Significant capital investment completed
11 Transformation of core customer and Significant capital contract management platform now complete investment $1.3m completed Upgraded IT Architecture Improved speed Refocused Core customer and contract lower costs via efficiencies, to market Resources management platform automation and some offsh
Slide 12: Operational savings
12 Operational savings Operating overheads totalled $9.5m in H1 FY20, compared to $10.5m in H1 FY19, a decrease of 10% Reduction in FTE Consolidation of Offshoring Reduction in Cost control locations resources Directors fees ▶ Flattening of the ▶ Closure of 3 ▶ Replacing on- ▶ Directors ▶ Ongoing st
Slide 13: FY20 H2 Priorities
13 FY20 H2 Priorities "My account manager is so helpful, always answers my questions promptly. The outcomes are what my organisation look for." Assurance and Procurement Manager
Slide 14: H2 FY20 priorities: foundations for growth
14 H2 FY20 Sales Growth Capability Further develop scalable digital platforms and priorities Strengthen customer engagement to lift acquisition and retention. eliminate legacy systems. ‘foundations Launch new products to boost sales and grow Enhance Metrics platform, deliver data-led energy for grow
Slide 15: H2 FY20 priorities: foundations for growth
15 H2 FY20 Service Profit Engagement priorities Improve customer engagement and delivery to Disciplined performance and cost control, lift forward revenue, drive Build a high-performance culture. ‘foundations improve retention and net promoter outcomes. efficiencies via technology and achieve commer
Slide 16: Outlook
16 Outlook Operational focus Financial performance Lead conversation around ‘Net • Due to either missing or deferring of sales opportunities in Zero’ Advisory and Corporate key accounts, Energy Action expects to major sales program designed to meet heightened return to profit in H2 FY20 and breakeve
Slide 17: John Huggart and Tracy Bucciarelli contacts
17 John Huggart Chief Executive Officer john.huggart@energyaction.com.au (02) 9633 6476 1300 553 551 info@energyaction.com.au Tracy Bucciarelli Chief Financial Officer energyaction.com.au tracy.bucciarelli@energyaction.com.au (02) 9633 6407 linkedin.com/company/energy-action Communications by Energy
Slide 18: Appendix
Eo Appendix iP Pod EnergyAction”
Slide 19: To help our clients understand, and take control of, their energy needs
19 To help our clients understand, and Our Expertise take control of, their energy needs A national team with knowledge and capability to offer better • We help businesses save on energy costs, reduce emissions and increase the value of ways of buying, using and their assets generating energy • “ ..
Slide 20: Procurement
20 Procurement No. of successful AEX auctions H1 FY20 389 H1 FY19 2 Restated 433 Variance -10% 20 Total revenue of $3.1m decline of 17% primarily driven by lower auction Average AEX contract duration 28.3mth 28.5mth -0.2mth volumes TWhs procured via auction 0.47 0.47 0% Average annualised MWhs per 1
Slide 21: CMER
21 Sites Under Management CMER 12,000 10,000 Contract Management and 8,000 Environmental Reporting (CMER) 6,000 revenue of $6.2m declined 16% 4,000 2,000 0 9,087 sites currently under Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 management Energy Metrics Bureau Services Data Only Embedded Networ
Slide 22: Advisory Services: steps towards Net Zero
22 The steps towards Net Zero Advisory 100% 22 Carbon Emissions (tCo2-e) Services Advisory Services revenue of $1.1m declined 56% with repositioning of the former PAS division 0% Measure Reduce Renewable Procurement Offset Net Zero Top line revenue reduction following cessation of unprofitable proje
Slide 23: Statutory to operating profit reconciliation
23 Statutory to operating profit reconciliation NPAT EBITDA H1 FY20 H1 FY19 Variance H1 FY20 H1 FY19 Variance Statutory results (289,509) (9,930,600) 97% 350,388 (8,557,578) 104% Add back significant Items after tax: Tax rate changes - 169,010 100% - - 0% Strategic review 32,831 116,268 72% 45,284 1
Slide 24: Disclaimer
24 Disclaimer This presentation has been prepared by Energy Action Limited ABN: 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 in which such an offe
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