Energy Action Limited · ASX:EAX
Energy Action — Investor Presentation (September 2021)
25 slides from Energy Action's investor presentation, Sep 23, 2021
Slide 1: FY21 Full Year Results Presentation
SEPTEMBER 2021 FY21 Full Year Results Presentation
Slide 2: FY21 Results Agenda
2 FY21 Results Agenda ► Business Overview ► Group financial results ► FY22 Priorities
Slide 3: Business Overview
Business Overview Energy Action are really strong in the auction process. It’s absolutely frictionless. I just ring them up and say ‘I’ve got this site here’ and they’ll run an auction allowing retailers to bid for my business’s usage which creates a competitive tension between the retailers. I don’
Slide 4: Our Why
4 ► Our Mission. To make energy easier, cleaner, and lower cost Our Why ► Our Goals. • To invest in technology that simplifies the The status quo is no longer sector. acceptable. • To provide clear and low-cost paths to Net Zero for clients looking to build sustainable businesses in a changing world
Slide 5: What We Offer
5 ► Energy Buying: We identify the right procurement technique to reduce the prices our clients pay. What We Offer ► Energy Management: We identify the energy being wasted. The emissions that can be prevented. And the money that could be saved. We identify the money businesses could be saving ► Embe
Slide 6: FY2021 Financial highlights
6 FY2021 Financial highlights REVENUE STATUTORY NPAT NET CASHFLOW REVENUE NOT INVOICED $14.4m ($1.0m) ($0.78m) $6.2m 27% FALL 60% IMPROVEMENT 149% FALL STEADY FUTURE REVENUE OPERATING NPAT OPERATING CASHFLOW NET DEBT $15.4m ($0.42m) ($0.06m) $4.73m 8.9% FALL FY20 $23k 24% FALL 48% INCREASE
Slide 7: FY2021 Energy Buying
7 FY2021 Energy Buying Auctions 100 1,200 $90.42 Auction volumes showed 90 $80.77 1,000 promise of early growth in 80 $75.41 first half year but ended the 70 $54.56 800 year with a moderate decline. 60 50 600 1,078 40 759 400 30 744 727 20 200 10 0 0 FY18 FY19 FY20 FY21 Auctions $/MWh
Slide 8: FY2021 Future Contracted Revenue
8 FY2021 Future Contracted Revenue Future contracted revenue $40M $35M $32.7M Future contracted revenue is contracted revenue from $30M energy buying services and $25M energy management $21.6M $20.8M $20M subscriptions, and embedded $15.7M $16.9M $17.3M $15.4M network contracts. $15M Stabilising aft
Slide 9: Group Financial Results
Group Financial Results We transferred all of our accounts using Energy Action into one consolidated group that was taken to auction by David and his team. We have gained significant savings for our business and simplified our energy usage admin. I would highly recommend David Farag and Energy Actio
Slide 10: Income statement FY21
10 Income statement FY21 FY21 FY20 % Variance Revenue 14,359,111 19,781,729 -27% COGS 600,936 1,573,074 62% Statutory loss of $1m Gross margin 13,758,175 18,208,656 -24% Improved 60% compared to PCP OPEX - excl D&A 13,479,950 16,442,099 18% EBITDA 278,225 1,766,557 -84% Operating loss of $0.42m Comp
Slide 11: Operational savings
11 Operational savings Operating overheads & COGS decreased $3.9m (22%) Reduction in Consolidation of Offshoring Technology Cost employment costs locations resources control ► $1.3million lower ► Melbourne reduction in ► Growth in offshore ► Reduction in computer ► Reduced travel than PCP space with
Slide 12: Balance Sheet FY21
12 Balance Sheet FY21 2021 2020 Cash and cash equivalents 2,423 3,196 Trade and other receivables 1,431 2,402 $6.2m Revenue not Invoiced Current Tax Asset 153 21 Auction & SME commissions earned to be paid Other assets 4,459 4,232 Total Non-Current Assets 4,749 4,444 3 year extension on loan facilit
Slide 13: Cash flow statement
FY21 FY20 Variance 13 Operating EBITDA 278,225 1,766,557 (1,488,332) Cash flow statement Share based payments & other non-cash Working capital movements 7,765 (3,002) 10,767 Trade & Other Debtors 411,251 712,165 (300,914) Operating cash flow of ($0.06m) Before interest and tax Work in progress 40,21
Slide 14: FY22 Priorities & Opportunity
FY22 Priorities & Opportunity We highly recommend Energy Action. After an initial discussion with David, it was uncovered we were paying well over the current market rates for our power requirements. He quickly put our requirements out to tender using the auction platform. As a result, we have reduc
Slide 15: Energy Action Market Share
15 Energy Action Market Share Australian Business Energy Market 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. Excludes statutory RE
Slide 16: Energy Action's focus going forward is sustainable, profitable growth
16 Energy Action's focus going forward is sustainable, profitable growth Our strategy ► Customer growth. ► Technology investment. ► Net Zero. We have 20-year customer Give our customers easy to We are Net Zero. We will relationships, and our use energy management help our customers lower customers u
Slide 17: Contact details
17 1300 553 551 info@energyaction.com.au energyaction.com.au linkedin.com/company/energy-action Communications by Energy Action Limited and its related bodies corporate (Energy Action) are subject to the terms of Energy Action’s General Disclaimer. Energy Action (Australia) Pty Ltd holds an Australi
Slide 18: Appendix
Appendix
Slide 19: Energy Buying
19 Energy Buying Revenue of $5.5m (16% down YoY) FY21 FY20 Variance No. of successful AEX auctions 727 759 -4.2% AEX auction volumes down 4% from PCP Average AEX contract duration 30.7 29.4 1.3months despite strong retention rates. 28% decline TWhs procured via auction 0.8 0.8 0% in the $/Mwh pricin
Slide 20: Energy Management
20 Energy Management Revenue of $7.5m (down 32% YoY) 5,604 sites currently under management Significant growth in Metrics gross sales order of 20% compared PCP * Sites under current contract does not included contracts which are signed, but yet to commence service delivery Decline in sites under man
Slide 21: Embedded Networks
21 Embedded Networks Revenue of $1.3m (flat overall YoY) 3,629 sites currently under management Increase in sites under management of 59 sites COVID-19 impact with less active sites for billing and delayed * Sites under current contract does not included contracts which are signed, but yet to commen
Slide 22: Operating profit drivers
22 Operating profit drivers Reduction in NPAT driven by Lower OPEX excl. lower revenue offset by D&A improved by +18% COGS and OPEX savings with lower employment costs, occupancy costs, computer maintenance and travel Financing Lower interest rates Revenue resulting in interest Energy Buying -$1.1m
Slide 23: Statutory to operating profit reconciliation
23 Statutory to operating profit reconciliation NPAT EBITDA FY21 FY20 Variance FY21 FY20 Variance Statutory results (1,000,258) (2,486,756) 60% (506,502) (1,491,768) 66% Add back significant Items after tax: Restructuring cost 333,022 328,265 -1% 450,029 452,780 1% Accelerated D&A1 - 148,423 100% -
Slide 24: Revenue not invoiced
24 Revenue not invoiced Strong asset “Revenue not invoiced” of $6.2m holds the cash to be received in the future for revenue recognised in current and previous fiscal periods Balance stable with growth in new sales orders offsetting the reduction in the balance from invoicing ► Revenue from Auction,
Slide 25: Disclaimer
25 Disclaimer. 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 in which such an offe
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