Energy Action Limited · ASX:EAX
Energy Action — H1 FY2016 Earnings Presentation
28 slides from Energy Action's earnings presentation, Feb 26, 2016
Slide 1: Financial Results Presentation for the half year ended 31 December 2015
For personal use only Financial Results Presentation for the half year ended 31 December 2015 Presented by Mr Scott Wooldridge Chief Executive Officer Energy Action Limited Mr Michael Fahey Chief Financial Officer Energy Action Limited 1
Slide 2: FY16 Interim Results Agenda
FY16 Interim Results Agenda For personal use only 1. Results Highlights – Scott Wooldridge 2. Group Financials – Michael Fahey 3. Operational Performance – Scott Wooldridge 4. Outlook and FY16 Priorities – Scott Wooldridge 2
Slide 3: Results Highlights
For personal use only 3 Results Highlights
Slide 4: FY16 Interim Results Highlights
FY16 Interim Results Highlights • Revenue up 11% vs pcp For personal use only – Growth driven by PAS +49% • Operating NPAT down 4.3% vs pcp – Impact of lower margin products, higher financing costs • Improved operational performance – PAS utilisation improved – Brand migration completed – Single CRM
Slide 5: Group Financial Results
For personal use only Group Financial Results 5
Slide 6: Financial Highlights
Financial Highlights For personal use only • Revenue of $17.4 million up 11% driven by PAS (+49%) and CMER • CMER revenue up 4% as more customers commencing service delivery • Procurement revenue down 2% with good growth in Structured Products offsetting strong market competition in Electricity Tend
Slide 7: Statutory to Operating Profit reconciliation
Statutory to Operating Profit reconciliation For personal use only 31 Dec 31 Dec 31 Dec 31 Dec $000’s 2015 2014 % var 2015 2014 % var Operating profit after tax EBITDA Statutory results after tax (614) (420) (46.2%) 891 1,025 (13.1%) Employee share based payments 199 89 123.6% 199 89 123.6% Deferred
Slide 8: Operating NPAT at $1.656 million down 4.3%
Operating NPAT at $1.656 million down 4.3% Gross margin impacted by product mix For personal use only HY16 HY15 vs HY15 % Revenue 17,364,243 15,655,738 11% COGS ‐3,406,640 ‐2,240,253 ‐52% COGS increase due to product mix Gross Margin 13,957,603 13,415,485 4% Opex ‐ excluding D&A ‐10,796,807 ‐10,240,
Slide 9: HY16 Operating Profit drivers
HY16 Operating Profit drivers Revenue and COGS increases driven predominantly by PAS margins For personal use only $4,000,000 $1,709 $3,500,000 Incremental PAS margin $346K $3,000,000 Other margin increase $196K $2,500,000 $1,166 $2,000,000 $1,729 $181 $1,656 $557 $1,500,000 $93 $147 $1,000,000 $500
Slide 10: Revenue growth driven by PAS and CMER
Revenue growth driven by PAS and CMER Revenue up 11% versus prior period For personal use only HY16 HY15 vs HY15$ vs HY15 % Total Procurement 4,152,726 4,255,081 ‐102,355 ‐2% Total Contract Mgmt & Energy Reporting 8,571,478 8,220,779 350,699 4% Projects & Advisory Services 4,376,587 2,945,901 1,430,
Slide 11: EBITDA to Operating cash conversion rate of 92%
EBITDA to Operating cash1 conversion rate of 92% Focus on receivables management delivered strong cash result For personal use only 4,500,000 4,000,000 $628 3,500,000 $3,161 $292 $2,924 3,000,000 $1,169 $485 $1 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Operating EBITDA Trade debtors Other de
Slide 12: Operating cost growth less than CPI
Operating cost growth less than CPI Normalised Opex growth of 1% For personal use only Operating Expenditure 12,500,000 12,000,000 11,500,000 11,000,000 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 H1 FY15 H1 FY15 normalised for H2 FY15 H1 FY16 Energy Advice • H1 FY15 included four
Slide 13: 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 $5.542 million loan and $3.239 million in ban
Slide 14: Future Contracted Revenue
Future Contracted Revenue $72.7 million as at December 2015 vs $75.8 million as at June 2015 For personal use only Future Contracted Revenue Future Contracted Revenue realisation year • Quality of forward book improved : 93% of revenue to be realised with 5 years compared to 87% at December 14. • Fu
Slide 15: Quality of forward revenue improved
Quality of forward revenue improved 93% of revenue due to be recognized within 5 years, up from 87% For personal use only 90,000 80,000 70,000 13% 7% 60,000 50,000 40,000 30,000 87% 93% 20,000 10,000 ‐ Dec 14 Dec 15 < 5 years >5 years • Quality of forward revenues improved in line with strategy to l
Slide 16: Operational Performance
For personal use only Operational Performance 16
Slide 17: Operational Highlights
Operational Highlights Positives For personal use only • Strong revenue growth in PAS (+49%) • PAS utilization improving delivering improved margins • Contract Management sites resumes growth – up by 425 this half year • Growth in Structured Products ‐ both new clients and expansion of services to e
Slide 18: Energy Procurement
Energy Procurement For personal use only • Energy Action provides a complete H1 FY16 H1 FY15 Variance range of procurement options including auctions, tenders and No of Auctions1 969 906 7% structured products. Solutions are Average contract duration 23.2mth 25.8mth ‐2.6mths tailored to the client’s
Slide 19: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only • Energy Action offers two contract management platforms, Activ8 and Energy Metrics, which provide contract management services via automated monitoring and reporting • Key Customer deliverables are: • Monthly Bill Verification • Annual Ta
Slide 20: Contract Management & Energy Reporting
Contract Management & Energy Reporting Growth in sites under contract – up 425 sites since June For personal use only 8,000 7,000 +186 sites +129 sites 6,000 5,000 4,000 +110 sites 3,000 2,000 1,000 0 Activ8 / Energy Metrics Bureau Data only Jun‐15 Dec‐15 20
Slide 21: Projects & Advisory Services
Projects & Advisory Services Revenue growth driven by Projects – up 198% For personal use only 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Projects Other PAS HF15 HY16 • Projects include a major building services upgrade, commercial solar and power factor correction projects 21
Slide 22: Outlook
For personal use only 22 Outlook
Slide 23: Outlook – balance of FY16
Outlook – balance of FY16 For personal use only • Launch of Activ8 Platinum near real time data service (mid 2016) • Launch of building efficiency benchmarking service (mid 2016) • Continued to drive PAS pipeline and further improvements in utilization • Implement strategic partnership with Sun Edis
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: Disclaimer
Disclaimer For personal use only 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
Slide 26: Connect with us
Connect with us For personal use only Twitter: @EnergyActionAUS LinkedIn: www.linkedin.com/company/energy‐action Email: info@energyaction.com.au Web: www.energyaction.com.au National number: 1300 553 551 Communications by Energy Action Limited and its related bodies corporate (Energy Action) are sub
Slide 27: Appendix
For personal use only 27 Appendix
Slide 28: Balance Sheet
Balance Sheet BALANCE SHEET AS AT ‐ December 2015 For personal use only 31/12/2015 30/06/2015 Variance % Variance Current Assets Cash and cash equivalents 1,220,145 1,740,288 (520,143) Restricted Cash 1,000,000 1,000,000 ‐ Trade and Other Receivables 4,704,437 5,868,825 (1,164,388) Other Assets 1,91