Slide 1: Group Financial Results
Tower 3 Collins Square, 747 Collins Street, Melbourne VIC 1 For personal use only GROUP FINANCIAL RESULTS 16 AUGUST 2018 IVAN SLAVICH MICHAEL FAHEY Chief Executive Officer Chief Operating Officer & Chief Financial Officer Energy Action Limited Energy Action Limited
Slide 2: Full Year FY18 Results Agenda
Tower 3 Collins Square, 747 Collins Street, Melbourne VIC For personal use only FULL YEAR FY18 RESULTS AGENDA ENERGY ACTION 1. RESULTS HIGHLIGHTS & BUSINESS UPDATE Ivan Slavich 2. GROUP FINANCIALS Michael Fahey 3. OPERATIONAL PERFORMANCE Ivan Slavich 4. FY19 PRIORITIES Ivan Slavich
Slide 3: FY18 Full Year Results Highlights
FY18 FULL YEAR 3 RESULTS HIGHLIGHTS For personal use only STRONG GROWTH IN PROFITS, CASH FLOWS AND DIVIDENDS Statutory profit of $2.59 million Up 46% vs FY17 Operating profit of Up 3% vs FY17 $2.59 million Operating EBITDA Up 1.2 percentage points margin grew to 18.3% Operating cash Driven by higher
Slide 4: FY18 Full Year Business Highlights
FY18 FULL YEAR 4 BUSINESS HIGHLIGHT For personal use only OPERATIONAL HIGHLIGHTS PROCUREMENT CMER PAS CORPORATE Facilitated a 15 year Decline in Metrics sites Grew OptEEmise energy 30% increase in the Corporate PPA deal under management efficiency product for number of females in between UNSW, slowe
Slide 5: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS Quintessential Equity - 44 Sydney Ave, Forrest ACT
Slide 6: Operating NPAT of $2.59M
OPERATING NPAT OF $2.59M 6 STATUTORY PROFIT UP 46%, OPERATING PROFIT UP 3% For personal use only P&L FY18 FY17 % Variance Growth in Procurement offset by Revenue 31,173,824 32,957,103 (5%) lower CMER and PAS revenues COGS 4,466,526 5,931,570 25% Lower COGS on lower PAS revenue Gross Margin 26,707,29
Slide 7: Operating Profit Drivers
7 OPERATING PROFIT DRIVERS For personal use only 5% REDUCTION IN REVENUE Lower OPEX OFFSET WITH SAVING IN COGS Improved by 2% AND OPEX RESULTING IN 3% vs FY17 Due to lower HIGHER NPAT PAS COGS Procurement +$1.2M PAS -$1.2M CMER -$1.5M Other -$282K
Slide 8: Revenue and Other Income Declined by 5%
8 REVENUE AND OTHER INCOME FOR THE FULL YEAR DECLINED BY -5% For personal use only LOWER REVENUES IN CMER AND PAS PARTIALLY OFFSET WITH INCREASE IN PROCUREMENT FY18 FY17 Variance % Variance Procurement 9,279,290 8,079,593 1,199,697 15% Contract Mgmt & Energy Reporting 15,145,890 16,695,501 (1,549,61
Slide 9: Strong Operating Cashflow
9 For personal use only STRONG OPERATING CASHFLOW Operating Cash Flow FY18 FY17 OPERATING CASHFLOW BEFORE Operating EBITDA 5,703,603 5,631,858 Share based payments 55,458 (203,173) INTEREST & TAX CIRCA Trade debtors 2,153,828 (1,028,492) $3.3 MILLION HIGHER THAN FY17 Other debtors 139,786 (434,196)
Slide 10: Debt Structure and Key Financial Ratios
10 DEBT STRUCTURE AND KEY FINANCIAL RATIOS For personal use only $7.7 MILLION OF AVAILABLE HEADROOM UNDER EXISTING DEBT FACILITIES - UP $3.1 MILLION VS FY17 EAX has a 5 year, $12 million multi-option facility agreement expiring October 2019 • Can be provided under the facility as loans, bank guarant
Slide 11: Operational Performance
11 For personal use only OPERATIONAL PERFORMANCE Quintessential Equity - 44 Sydney Ave, Forrest ACT
Slide 12: Energy Optimisation Lifecycle and Client Interaction
ENERGY OPTIMISATION LIFECYCLE AND HOW 12 ENERGY ACTION INTERACTS WITH ENERGY CLIENTS For personal use only WE HELP CLIENTS UNDERSTAND AND TAKE CONTROL OF THEIR ENERGY NEEDS • Complete energy assessments and • Design and manage solutions to aid audits; energy users to become more self- sufficient and
Slide 13: Procurement
13 For personal use only FY18 FY17 Variance No. of successful AEX Auctions1 1,311 1,306 5 Average AEX contract duration 26.1mth 20.3mth 5.8mths TWhs procured via Auction2 1.48 1.57 (5.7%) Average $/MWh $88.85 $85.52 3.9% Total Auction Bid Value3 $285m $227m 26% No. of electricity tenders 47 40 18% N
Slide 14: Contract Management & Environmental Reporting
14 CONTRACT MANAGEMENT For personal use only & ENVIRONMENTAL stable since January REPORTING CMER REVENUE DECLINED 9% HOWEVER SITES UNDER MANAGEMENT STABILISED SINCE JANUARY 2018 • Over 8,100 sites are under management. • CMER revenue declined 9% with sites under management in the core Metrics servic
Slide 15: Projects & Advisory Services
15 PROJECTS & ADVISORY For personal use only SERVICES + 5% - 58% PAS REVENUES DECLINED FOLLOWING SHIFT FROM LOW MARGIN PROJECT WORK TO HIGHER MARGIN CONSULTING. CONSULTING Projects Consulting REVENUES GREW 5% • PAS revenues declined by 15% vs FY17, with a • 241 O’Riordan St, Sydney achieved 4.5 star
Slide 16: Corporate Highlights
16 CORPORATE HIGHLIGHTS For personal use only Improved workplace diversity Continued investment in core with a 30% increase in the system development with benefits number of female leaders in expected to be realised in second management positions half of FY19 Heightened Energy Action Lowered cost to
Slide 17: FY19 Priorities
17 For personal use only FY19 PRIORITIES Quintessential Equity - 44 Sydney Ave, Forrest ACT
Slide 18: Our Top Priorities for FY19
OUR TOP PRIORITIES FOR FY19 18 BUSINESS STRATEGY & PROSPECTS FOR FUTURE FINANCIAL YEARS For personal use only KEY PRIORITIES • Refresh Energy Metrics with new offers, additional value adds and improved automation. • Develop and launch an Integrated Energy Plan offering for clients for cross sell opp
Slide 19: Strategic Review
19 For personal use only STRATEGIC REVIEW PwC APPOINTED TO CONDUCT A REVIEW OF THE VARIOUS STRATEGIC OPTIONS AVAILABLE TO MAXIMISE VALUE FOR SHAREHOLDERS • ASX announcement of strategic review 6th August 2018. • Options include the potential sale, joint venture or merger with another organisation, o
Slide 20: Connect With Us
CONNECT WITH US 20 For personal use only IVAN SLAVICH CONTACT Chief Executive Officer Twitter: @EnergyActionAUS (02) 9633 6476 Ivan.slavich@energyaction.com.au LinkedIn: www.linkedin.com/company/energy-action Email: info@energyaction.com.au MICHAEL FAHEY Chief Operating Officer & Web: www.energyacti
Slide 21: Disclaimer
DISCLAIMER 21 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
Slide 22: Appendix
W 22 For personal use only APPENDIX Quintessential Equity - 44 Sydney Ave, Forrest ACT
Slide 23: Balance Sheet
BALANCE SHEET Balance Sheet As at ‐ Jun‐2018 30/06/2018 30/06/2017 % Variance 24 CURRENT ASSETS Cash and cash equivalents 1,171,288 2,105,780 (44%) Trade and other receivables 3,838,586 5,992,413 (36%) For personal use only Current tax asset 56,738 877 6370% Other assets 2,374,044 2,221,521 7% TOTAL
Slide 24: Statutory to Operating Profit Reconciliation
25 STATUTORY TO OPERATING PROFIT RECONCILIATION For personal use only Operating profit after tax EBITDA $ FY18 FY17 Variance FY18 FY17 Variance Statutory results after tax / Operating EBITDA 2,588,357 1,772,970 46% 5,703,603 4,731,322 21% Add back Significant Items after tax : Deferred consideration
Slide 25: Impact of Changes to the Revenue Accounting Standard
IMPACT OF CHANGES TO THE 26 REVENUE ACCOUNTING STANDARD For personal use only AASB 15 REVENUE FROM CONTRACTS WITH CUSTOMERS • The change to AASB 15 Revenue from contracts with customers becomes effective 1 July 2018 for the FY19 financial year. • Energy Action elects to adopt the full retrospective
Slide 26: Impact of Changes to the Revenue Accounting Standard
IMPACT OF CHANGES TO THE 27 REVENUE ACCOUNTING STANDARD For personal use only AASB 15 REVENUE FROM CONTRACTS WITH CUSTOMERS • Impact on opening Retained earnings as at 1 Opening Balance Total July 16 (FY17 and prior) is +$2.98 million, Adjustment FY18 Impact Impact one-off acceleration of revenue an
Slide 27: Impact of Changes to the Revenue Accounting Standard
IMPACT OF CHANGES TO THE 28 REVENUE ACCOUNTING STANDARD For personal use only AASB 15 REVENUE FROM CONTRACTS WITH CUSTOMERS AASB15 impact on FY18 Profit & Loss Statement: FY18 FY18 • Revenue increased by $0.58 million P&L FY18 Impact % Impact AASB15 AASB15 • OPEX decreased by $0.56 million Revenue 3