Energy Action Limited · ASX:EAX
Energy Action — H1 FY2017 Earnings Presentation
25 slides from Energy Action's earnings presentation, Feb 20, 2017
Slide 1: Financial Results Half Year FY17
For personal use only FINANCIAL RESULTS HALF YEAR FY17 Mr Michael Fahey Ms Tracy Bucciarelli Interim Chief Executive Officer Interim Chief Financial Officer Energy Action Limited Energy Action Limited
Slide 2: Half Year FY17 Results Agenda
HALF YEAR FY17 RESULTS AGENDA For personal use only Energy Action 1. Results Highlights 2. Group Financials 3. Operational Performance 4. Balance of Year Priorities and Outlook
Slide 3: FY17 Half Year Results Highlights
FY17 HALF YEAR RESULTS HIGHLIGHTS For personal use only Results impacted by market volatility > Unprecedented market volatility, including Hazelwood closure announcement, South Australian blackouts and lack of affordably priced gas. This volatility has impacted results as procurement events were def
Slide 4: Energy Action Price Index (EAPI)
ENERGY ACTION PRICE INDEX (EAPI) For personal use only Sharply escalated prices in H1 FY17 • Significant price volatility in H1 FY17 across all states • Prices circa 50% higher than December 2015 • South Australia particularly impacted Electricity prices are dependent upon various factors outside of
Slide 5: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS 5
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only Profitable result in a difficult market Positives Challenges • Growth in the PAS forward order book, • Unprecedented volatility in energy with higher revenues expected in H2 FY markets with numerous instances of 17 as projects move into delivery mode retail
Slide 7: Operating NPAT of $0.8M
OPERATING NPAT OF $0.8M For personal use only Results impacted by lower procurement revenues and timing of PAS projects % $ H1 FY17 H1 FY16 Lower PAS and Procurement Variance revenues Revenue 15,596,663 17,364,243 ‐10% COGS 2,530,044 3,479,584 27% Lower COGS on lower PAS revenue Gross Margin 13,066,
Slide 8: Operating Profit Drivers
OPERATING PROFIT DRIVERS For personal use only Lower revenues leading to lower NPAT GM decline $818K ‐ PAS margin $234K ‐ Other $584K 8
Slide 9: First Half Revenue of $15.6 Million
FIRST HALF REVENUE OF $15.6 MILLION For personal use only Revenue impacted by lower Procurement and timing of PAS projects $ % H1 FY17 H1 FY16 Variance Variance Procurement 3,791,044 4,152,725 ‐361,681 ‐9% Contract Mgmt & Energy Reporting 8,613,536 8,571,478 42,058 ‐ Projects & Advisory Services 2,9
Slide 10: Debt Structure and Key Financial Ratios
DEBT STRUCTURE AND KEY FINANCIAL RATIOS For personal use only Operating within covenants despite lower results EAX has a 5 year, $12 million multi‐option facility agreement expiring September 2019 • Can be utilised for borrowings, bank guarantees or letters of credit • Current utilisation comprised
Slide 11: Operational Performance
For personal use only OPERATIONAL PERFORMANCE 11
Slide 12: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY For personal use only Positioning for growth in uncertain markets Growth from macro industry Expanding Customer Reach Operational improvements trends • Improved customer • Contract management • Expand micro‐grids segmentation system upgrade • Commercial building • Tailored
Slide 13: Energy Procurement
ENERGY PROCUREMENT For personal use only Unprecedented market volatility impacted procurement revenues • Energy Action provides a complete H1 FY17 H1 FY16 Variance range of procurement options across four distinct market No of Auctions1 704 969 ‐27% Average contract duration 19mth 23.2mth ‐4.2mths s
Slide 14: Contract Management & Environmental Reporting
CONTRACT MANAGEMENT & ENVIRONMENTAL REPORTING For personal use only > Energy Action offers Contract Management services under three bundled service and software offers. Key Customer deliverables are: – Monthly Bill Verification – Annual Tariff Reviews – Daily, Weekly, Monthly and Annual energy and e
Slide 15: Energy Metrics Platinum – Phase II
ENERGY METRICS PLATINUM – PHASE II For personal use only Forecasting added in February, SMS & e‐mail alerts to come in Q4 • 5 minute demand, consumption, and cost data • Forecasting load and peak events • Visual display of usage & costs • Alerts via SMS / e‐mail • Compare with similar historic data
Slide 16: Mobile App to Be Launched March 2017
MOBILE APP TO BE LAUNCHED MARCH 2017 For personal use only
Slide 17: Projects & Advisory Services
PROJECTS & ADVISORY SERVICES For personal use only Highlights for the half year > 747 Collins Street achieved 6 Star NABERS rating and the EAX team involved were shortlisted for the Victorian Premier’s Sustainability award and were finalists in the CIBSE International project of the year > Appointed
Slide 18: Projects & Advisory Services
PROJECTS & ADVISORY SERVICES For personal use only Irregular nature of project work skews results. Consulting revenues grew 3% 2500000 2000000 Project work is irregular in 1500000 nature, making year on year comparisons difficult 1000000 500000 0 Projects Reporting, Analysis, PME HY16 HY17 • H1 FY16
Slide 19: Balance of Year Priorities
For personal use only BALANCE OF YEAR PRIORITIES 19
Slide 20: Improving Operating Performance in a Volatile Market
IMPROVING OPERATING PERFORMANCE IN A VOLATILE MARKET For personal use only Changing market conditions provide opportunities > Improve customer focus and continue to implement strategy – Launch customer app and improved website – Drive additional customer growth in Embedded networks, Structured Produ
Slide 21: Michael Fahey – Connect With Us
Michael Fahey Interim Chief Executive Officer 02 9633 6405 michael.fahey@energyaction.com.au For personal use only CONNECT WITH US Twitter: @EnergyActionAUS LinkedIn: www.linkedin.com/company/energy‐action Email: info@energyaction.com.au Web: www.energyaction.com.au National number: 1300 553 551 Com
Slide 22: 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 23: Appendix
For personal use only APPENDIX 23
Slide 24: Balance Sheet
BALANCE SHEET BALANCE SHEET AS AT ‐ December 2016 For personal use only 31/12/2016 30/06/2016 Variance % Variance Current Assets Cash and cash equivalents 1,296,380 1,207,045 89,334 Debtors 6,311,194 4,969,770 1,341,424 Current Tax Receivables 334,094 ‐ 334,094 Other Assets 1,447,601 1,468,736 (21,1
Slide 25: Statutory to Operating Profit Reconciliation
STATUTORY TO OPERATING PROFIT RECONCILIATION For personal use only Share based payments now included in Operating Profit Operating profit after tax EBITDA $ H1 FY17 H1 FY16 Variance H1 FY17 H1 FY16 Variance Statutory results after tax 294,037 (614,231) 148% 1,567,281 890,989 76% Add back Significant