Energy One Limited · ASX:EOL
Energy One — H1 FY21 Earnings Presentation
32 slides from Energy One's earnings presentation, Feb 19, 2021
Slide 1: First half results briefing and information session
19 February 2021 Energy One Limited (ASX : EOL) First half results briefing and information session 2PM – 3PM (AEDT) 19th February 2021 The Company has prepared the attached presentation for the half year results briefing and information session at 2pm today. We will be using Microsoft Teams. The ca
Slide 2: First half results FY21
Energy One Limited (ASX:EOL) First half results FY21 1
Slide 3: 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 4: Contents
Contents Financial results 4 Company outlook 15 Appendices 21 About Energy One 22 3
Slide 5: Financial Results
Financial Results 4
Slide 6: Financial results summary
Financial results summary 31 Dec 20 31 Dec 19 Change Revenue $14,009,000 $9,662,000 45% EBITDA* $4,169,000 $2,342,000 78% EBITDA margin 30% 24% 25% NPBT $2,680,000 $765,000 250% NPAT $2,026,000 $407,000 398% EPS basic (cents) 7.75 1.78 341% * Before acquisition and related costs 5
Slide 7: A strong first half with good organic growth and margin expansion
A strong first half with good organic growth and margin expansion EBITDA increased 78% to $4.2M driven by: • A full 6 months contribution from eZ-nergy • EBITDA margin expanded from 24% to 30% • Organic growth in the Australian and European businesses NPAT for the half increased 398% to $2M driven b
Slide 8: Recurring revenue growing strongly
Recurring revenue growing strongly Recurring revenue now around 80% of total revenue • Licences, support and hosting fees (usually annual renewal) • ‘Bureau’ services – market operations for European customers Non-recurring, one off project revenue • Implementation services: • installing software •
Slide 9: It wasn't just revenue growth, EBITDA also grew strongly
It wasn’t just revenue growth, EBITDA also grew strongly Updated guidance of $8M EBITDA for FY21 *EBITDA is before acquisition and related costs 8
Slide 10: EBITDA margin increased to 30%
…EBITDA margin increased to 30% Improvement in margin a result of extracting synergies, product integration and ongoing focus on recurring revenue Contigo acquisition eZ acquisition temporarily depressed Group EBITDA margin. Contigo was acquired from a large corporate vendor. * Before acquisition an
Slide 11: NPAT for the first half was more than all of FY20
NPAT for the first half was more than all of FY20 10
Slide 12: NPAT driven by strong operating results and economies of scale
NPAT driven by strong operating results and economies of scale 11
Slide 13: Revenue growth has been both organic and from acquisitions
Revenue growth has been both organic and from acquisitions 53% of total revenue is now generated in Europe 12
Slide 14: Strong organic growth in Australia
Strong organic growth in Australia • Revenue for the first half of $6.62M, up 17.7% on the pcp • EBITDA of $1.99M was up 37% on the pcp • We added new customers and completed two large projects • Remained fully operational throughout Covid-19 year and had no need for any Job Keeper subsidy • Softwar
Slide 15: While Europe is exceeding expectations
While Europe is exceeding expectations 20 new clients in calender 2020: 14 in the E.U. and 6 in the U.K. European revenue growth was up 83% over pcp, given the full half contribution from eZ. However, this conceals some good organic growth by Contigo. • Contigo’s revenue growth was up 26% on pcp • E
Slide 16: Company Outlook
Company Outlook energyone
Slide 17: Europe is a new growth engine
Europe is a new growth engine • We have a strong market share in Australia, Europe gives us another area for strong growth • 53% of group revenue is now being generated in Europe • Further synergies available via product and solution integration • EOL still has less than 5% European market share • F
Slide 18: EOL's software tools used to manage exposure to risk and volatility
EOL’s suite of software tools are used by customers to manage their exposure to risk and volatility Our software is used to trade and manage both physical energy and derivative contracts either bilaterally (B2B) or on public exchanges. 17
Slide 19: Sticky customer base
Sticky customer base… SaaS Metric FY 19 FY 20 Half-year FY21 Average LTV per $1,449,506 $1,666,245 $3,465,261 customer LTV/CAC 11.7 14.8 46.3 Customer-installs 143 205 216 Typical contract length 1-5 year initial term, then annual renewals Churn 3.8% 4.1% 2.5% Gross margin 60% 59% 61% • Churn much l
Slide 20: Full year guidance
Full year guidance FY21 Revenue $27.5M FY21 EBITDA $8.0M FY21 NPAT $3.7M 19
Slide 21: Mr Shaun Ankers - CEO and Managing Director
Mr Shaun Ankers - CEO and Managing Director Email: enquiries@energyone.com Level 13, 77 Pacific Highway North Sydney NSW 2060 +61 2 8916 2200 20
Slide 22: Appendix
Appendix Additional information 21
Slide 23: Energy One a profitable SaaS & Services company
• Energy One Limited (ASX:EOL) is a leading independent global supplier of Energy Trading and Risk Management (ETRM) software systems. Energy One • We offer SaaS-based solutions for the a profitable trading of energy derivatives and the scheduling of physical energy (including SaaS & electricity, ga
Slide 24: Supplying large blue chip essential industries
Supplying large blue Our customers are often large: • Utilities – such as power stations and chip vertically integrated retailers • Infrastructure providers – such as gas pipelines, electricity transmission companies • Include new generation sources (such as wind and solar) in essential • Our custom
Slide 25: Many energy market participants use EOL software
Many energy market participants use EOL software Electricity Exchange Traded Generators: Derivatives Energy - Solar farms Consumers Traded energy - Wind farms Spot Market (Domestic) - Hydro for Electricity Energy - Batteries Retailers/ - Coal fired - Gas fired OTC Contracts, PPA’s Suppliers Green Ce
Slide 26: A comprehensive suite of software
A comprehensive suite of software Physical Bidding ETRM Business Process Allows a power station to bid it’s Contract management for Automation electricity (quantity, price, time recording physical trades (PPA’s) and financial derivatives (Swaps, Many systems and contracts in and place) into the Nati
Slide 27: EOL software makes life easier
EOL software makes life easier Participant Challenges faced EOL group products Generators Accurate, compliant energy spot market bidding Efficiently dispatching generation during constrained network events Energy operations (B2B, bid preparation, monitoring, compliance) Hedging output against
Slide 28: Project revenue creates a very sticky SaaS customer base
Project revenue creates a very sticky SaaS customer base • Compared to other SaaS vendors Energy One has a larger proportion of project revenue ~20%. While this lowers overall gross margin, we consider it a positive… • Large blue-chip customers consider ETRM software mission critical so installing n
Slide 29: Strategic landscape dominated by CTRM systems
Strategic landscape dominated by CTRM systems • Commodity Trading and Risk Management (CTRM) systems dominate the strategic landscape. CTRM’s do everything from Cocoa beans to Copper. • Electricity however is a unique commodity that is difficult to store and needs to be transported and consumed imme
Slide 30: Competitive approach to target new business and legacy systems
Competitive approach to target new business and legacy systems Energy One targets three segments: 1) New business o Smaller companies using spreadsheets o Companies with in-house legacy systems o 3rd party software that uses ‘old’ technology o new market entrants, start ups and expansion players 2)
Slide 31: The regional growth strategy is to land and expand
The regional growth strategy is to land and expand • Energy One is a challenger brand • Our strategy is to take on the the global players through incremental regional expansion. • We have adopted a land-and-expand strategy. Land in a new market geography and start expanding our customer base. • Euro
Slide 32: EOL provides investors a unique opportunity to invest in a specialist ETRM software company
EOL provides investors a unique opportunity to invest in a specialist ETRM software company Vendor type Presence No. of players Ownership Global players Global 5-6 Private equity Regional Region/market specific 3-4 Private equity (e.g Europe) or corporate Local Country specific and/or 15-20 Private