Energy Action Limited · ASX:EAX
Energy Action — H1 FY2021 Earnings Presentation
30 slides from Energy Action's earnings presentation, Feb 25, 2021
Slide 1: H1 FY21 Results Presentation
H1 FY21 Results Presentation John Tracy Huggart Bucciarelli Chief Executive Officer Chief Financial Officer February 2021 Energy Action Limited Energy Action Limited
Slide 2: H1 FY21 results agenda
2 H1 FY21 results agenda ► Highlights ► Group financial John Huggart results Tracy Bucciarelli ► Operational ► H2 FY21 performance priorities John Huggart John Huggart
Slide 3: Building the future
3 Building the future Building Sales Building the Business Building the Technology Platform Sales increased 25% from prior Future revenues increased $0.3m to Roadmap for next generation energy corresponding period (PCP) $17.1m between Jun 2020 and Dec category management platform 2020, first growth
Slide 4: Financial highlights Operational highlights
4 Statutory profit of Operating loss of Operating costs & Operating cash flow Financial COGS down by highlights $0.03m $0.15m $2.1m $0.14m +109% -3% Excluding govt +22% in savings stimulus Auction volumes AEX small Significant Employee Operational up business segment growth in engagement maintained
Slide 5: Highlights
Highlights “Working with Energy Action was one of the best decisions I have made. Comparing energy contracts yourself and deciphering what every charge is to ensure you get the best deal is a real nightmare. I'm so time poor having Energy Action go through everything so thoroughly made my life so mu
Slide 6: Large and diverse client base
6 Large and diverse client base ► Energy Action has thousands of clients, across all states and territories ► Our clients include commercial and industrial users and SMEs in every industry sector ► Our clients annual energy demand equates to ~10% of the total commercial national electricity market (
Slide 7: Our mission is to help customers understand and take control of their energy needs
7 Our mission is to help ► Why is this important? customers understand Energy is a minefield of rising financial and environmental costs and risks and data confusion and take control of their ► How does this benefit customers? energy needs We help businesses reduce their costs, reduce the effort to
Slide 8: Our vision
8 Our vision We are striving to be a category killer ► Our goal ► What we do ► Our advantages ► How will we get there A category killer for We help businesses EAX leads in procurement, Invest in technology to drive business energy reduce costs, the effort to with scale client base and efficiencies a
Slide 9: Our long-term growth plan
9 Our long-term growth plan Horizon 3 Horizon 2 Scale business into new markets Horizon 1 Nurture emerging growth opportunities Maintain and grow core business Strategy: Strategy: Strategy: ► Accelerate leadership in ► Leverage technology platform to ► Leverage local customer base, procurement and m
Slide 10: Group financial results
Group financial results “Technology Ski Club located in Perisher Valley NSW used Energy Action to obtain a better power deal for our club. We believe that this new deal will save us between 10% and 15% over our old arrangements. The service was very easy to use, all we needed to do was to provide ou
Slide 11: Income statement H1 FY21
11 Income statement H1 FY21 H1 FY21 H1 FY20 % Variance Revenue 8,078,363 10,418,670 -22% COGS 403,368 905,654 55% Statutory NPAT of $0.03m 109% increase compared to H1 FY20 Gross margin 7,674,995 9,513,017 -19% OPEX - excl D&A 7,347,019 8,967,739 18% Operating loss of $0.15m EBITDA 327,976 545,278 -
Slide 12: Future contracted revenue growing
12 Future contracted Turnaround for future contracted revenue – first time in 5 years revenue growing $40M $42.7M ▶May 2020 lowest point on future $35M $32.7M contracted revenue $30M ▶Growth of $1.5m in May 20 to May - Dec $17.1m in Dec 20 $25M +1.5M +10% $21.6M ▶Long term contract roll-offs $20.8M
Slide 13: Operational savings
13 Operational savings Operating overheads & COGS decreased $2.1m (22%) Reduction in Consolidation of Offshoring Technology Cost employment costs locations resources control ▶ A reduction of FTE as a ▶ Melbourne reduction in ▶ Growth in offshore ▶ Reduction in computer ▶ Reduced travel and result of
Slide 14: Cash flow statement
1H FY21 1H FY20 14 Operating EBITDA 327,977 545,278 Cash flow statement Share based payments Trade debtors 4,936 114,909 2,313 765,909 Other debtors 349,953 (86,013) Operating cash flow of $0.14m Before interest and tax Work in progress 202,880 516,724 Revenue not invoiced 114 401,559 Right of use a
Slide 15: Debt structure and key financial ratios
15 Debt structure and key financial ratios 8M Credit Card Facility 7M Liquidity : Liquidity : Unutilised $4.04M $3.05M Cash Unrestricted Prudent financial management 6M Non Cash Guarantees Of cash and debt Borrowings 5M 3 year extension on loan facility Net Debt : To October 2023 $3.19M Net Debt : 4
Slide 16: Operational performance
Operational performance “We have been a client of Energy Action’s since 2013 and recently used their services to take advantage of the low pricing in the market as advised by our Account Manager. Following the advice from our Account Manager, we took our sites across NSW and QLD to auction and were
Slide 17: Innovation to drive sales growth
17 Innovation to drive sales growth ► Leading the market ► Auction Blitz ► How to buy energy ► Bill Buster ► Solar auctions with ‘net zero at Initiative to help clients and save like the The continued success of launched achieve more competitive our Bill Buster campaign least cost’ experts The launc
Slide 18: H2 FY21 priorities
H2 FY21 priorities “Our experience with the Energy Action Bill Buster campaign was a very positive one, with all the hassle of trying to source the most competitive provider taken care of for us. Steven was easily contactable and most helpful, with responses to all queries being prompt. The summary
Slide 19: Technology update
19 Technology update Technology Building milestones the future ► Stabilised legacy systems to improve ► Product development roadmap for next generation energy category management platform client service via speed, accuracy and in place with implementation underway reliability ► Roadmap benefits: enh
Slide 20: Share placement and new director
20 Share placement and new director ► Bruce Macfarlane to join ► Mr Macfarlane has agreed Energy Action Board as to subscribe for 1,034,483 non-executive director fully paid ordinary shares to following completion of raise $300k taking his subscription agreement interest in EAX to 10.84% Bruce Macfa
Slide 21: Accelerate
21 Accelerate Outlook with strong foundations for growth in place Operational Financial ► Sales: Accelerate ► Technology: Build ► Profit: Disciplined leadership in team capability and revenue, cost and Target: Target: procurement and invest in platform to cash management managed services Return to 1
Slide 22: info@energaction.com.au energyaction.com.au @EnergyActionAUS
22 1300 553 551 info@energaction.com.au energyaction.com.au @EnergyActionAUS 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 h
Slide 23: Appendix
Appendix “…I am really impressed with Energy Action’s performance in embedded network management. Energy Action sorted out all the problems that we could not resolve over the past 12 months and corrected all the billing errors that we have since we took over the site. For Dandenong Plaza, just the r
Slide 24: Procurement
24 Procurement H1 FY21 H1 FY202 Variance Revenue of $3.2m (4% down YoY) No. of successful AEX auctions 450 378 19% AEX auction volumes up 19% from PCP. Average AEX contract duration 30.6 28.3 2.3months 4% increase in average annualised load TWhs procured via auction 0.57 0.45 27% per auction Average
Slide 25: Managed services
25 Managed services Sites Under Management - Managed Services Revenue of $4.3m (down 27% YoY) 7,000 6,000 5,000 4,000 6,322 sites currently under management 3,000 2,000 1,000 Metrics gross sales order growth up 98% compared PCP 0 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Energy Metrics Sustai
Slide 26: Retail services
26 Retail services Revenue of $0.7m (flat overall YoY) Sites Under Management - Retail Services 4,000 3,500 3,000 3,451 sites currently under 2,500 management 2,000 1,500 Decrease in sites under 1,000 management of 119 sites in Retail 500 Services 0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Retailer
Slide 27: Operating profit drivers
27 Operating profit drivers Reduction in NPAT driven by 500,000 Lower OPEX excl. lower revenue offset by D&A improved by +18% COGS and OPEX savings with lower employment 0 67,312 963 costs, occupancy costs, 144,796 148,213 1,620,720 152,444 computer maintenance and travel -500,000 Financing Revenue
Slide 28: Statutory to operating profit reconciliation
28 Statutory to operating profit reconciliation NPAT EBITDA H1 FY21 H1 FY20 Variance H1 FY21 H2 FY20 Variance Statutory results 26,036 (289,509) 109% 569,166 350,388 62% Add back significant Items after tax: Strategic review - 32,831 100% - 45,284 100% Restructuring cost* (14,572) 108,464 113% (19,6
Slide 29: Revenue not invoiced
29 Revenue not invoiced $7M $7.3M $6.2M $6.2M $6.2M $6M $5.9M $5M $4M Strong asset “Revenue not invoiced” of $6.2m holds the cash to be received in $3M the future for revenue recognised in $2M current and previous fiscal periods $1M 0 Balance stable with growth in new 1H FY19 FY19 1H FY20 FY20 1H FY
Slide 30: Disclaimer.
30 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