Energy Action Limited · ASX:EAX
Energy Action — Shareholder Meeting (November 2012)
50 slides from Energy Action's shareholder meeting presentation, Nov 22, 2012
Slide 1: ASX Release: Annual General Meeting
ASX Release For immediate release 22 November 2012 For personal use only Annual General Meeting Chairman’s address and Managing Director presentation _____________________________________________________________________________ Please find attached the Chairman’s address and the Managing Director’s
Slide 2: Annual General Meeting 22 November 2012
For personal use only Annual General Meeting 22 November 2012 1
Slide 3: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS 2
Slide 4: Welcome
Welcome Good morning ladies and gentlemen. My name is Ron Watts and I am the Chairman of For personal use only Energy Action. On behalf of the Board and staff of Energy Action, I would like to welcome shareholders to our inaugural annual general meeting as a listed company. As a courtesy to sharehol
Slide 5: Chairman's address: carbon tax and regulation
Although the carbon tax was approved by Parliament the day before our listing last year, and did not take effect until 1st July this year, it has impacted on our market significantly. While there is now a tendency towards shorter contracts (which stems from the uncertainty mentioned above rather tha
Slide 6: Contents
For personal use only Contents 1. About Energy Action 2. FY12 financials 3. Operational highlights 4. Ward Consulting 5. Outlook 6. Formal business 3
Slide 7: 1. About Energy Action
For personal use only 1. ABOUT ENERGY ACTION 4
Slide 8: Australia's Leading Energy Management Company
Australia’s Leading Energy For personal use only Management Company Formed in 2000 – management buy out in 2002 by 3 of the current executive team and 2 of the existing non- executive directors Significant growth with year on year double digit profit growth and history of paying dividends Crea
Slide 9: Share price performance and register
Share price performance and register For personal use only Listed at $1.00 in October 2011 – now trading at $2.65 Significantly outperformed peer index Number of shareholders has increased from 500 at IPO to approximately 760 Liquidity and volumes have improved Directors hold approximately
Slide 10: Overview of the Energy Market
For personal use only Overview of the Energy Market “In geographic span, the NEM is the largest interconnected power system in the world, covering a distance of 5,000 kilometres” (AER) 7
Slide 11: Electricity pricing
Electricity pricing For personal use only Energy Action Pricing Index Raw wholesale cost (ex network & other charges) of electricity is at historic lows Price increases have been driven by network and environmental charges Networks (poles and wires) are being „gold plated‟ Other forms of e
Slide 12: Regulatory environment
Regulatory environment For personal use only Australian energy market is highly regulated and very complex = opportunities for EAX Impact of carbon tax on EAX - > carbon inclusive contracts....but falling contract periods Australian Energy Market Commission‟s (AEMC) “Power of Choice” draft rep
Slide 13: Australia's Leading Energy Management Company: services
For personal use only Australia’s Leading Energy Management Company AEX - Australian Energy Exchange Assisting businesses to secure the best value and most suited energy contract on the market Activ8 - Monitoring and Assessment Through contract management and monitoring Activ8 makes sense of complex
Slide 14: AEX – Australian Energy Exchange
Procurement, management, efficiency For personal use only AEX – Australian Energy Exchange Online real time reverse auction platform delivers energy contract prices to commercial and industrial energy customers EAX receives a % commission (of the energy only component of a customers bill) from t
Slide 15: Activ8 and Activ8+
Procurement, management, efficiency For personal use only Activ8 – Energy monitoring and contract management Provides energy management solutions via automated monitoring reports – control and reduce energy costs and promote energy efficient behaviour Fee for service – paid monthly by the Meteri
Slide 16: Customer Process
For personal use only Customer Process Customer (e.g. McDonalds) Energy Action takes Electricity and Gas contracts to market Energy Retailer A* Energy Retailer B* Energy Retailer C* (Best Value Contract) Customer signs agreement for additional services Contract management & monitoring Identifying en
Slide 17: Competitors & market share
For personal use only Competitors & market share Energy Action’s Competitors include: The Energy Retailers – AGL, Origin, TRUenergy etc Private companies – E-utility, Energetics, Energy Advice, Creative Energy (soon to be Schneider Electric) Various smaller consultants A 2010 independent s
Slide 18: 2. FY12 Financials
For personal use only 2. FY12 FINANCIALS 15
Slide 19: FY12 financial highlights
For personal use only FY12 financial highlights Operating profit1 of $4 million was 4% above prospectus forecast Future income2 up 20% to $65 million 000’s FY12 FY11 Change Prospectus Change Revenue 17,371 14,037 3,334 24% 17,506 (135) (1%) Revenue up 24% to $17.4 million Statutory NPAT 3,611 2,
Slide 20: FY12 Income Statement
FY12 Income Statement For personal use only 000’s Jun-12 Jun-11 Change Prospectus Change $ $ 3 revenue streams.... Revenue & other income 17,372 14,037 24% 17,506 (1%) Activ8 - $10.8m (up $1.7m) Employee benefits expense (8,167) (7,126) 15% (8,803) (7%) AEX - $5.2m (up $1m) Large $4.3m Depreciat
Slide 21: FY12 Cash Flow Statement
For personal use only FY12 Cash Flow Statement 000’s Jun-12 Jun-11 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 18,884 15,282 Driven by a 10% reduction in Payments to suppliers and employees (13,057) (11,174) debtor days Interest received 183 45 Income tax paid (1,546) (1,441) Ne
Slide 22: Balance sheet – platform for further growth
Balance sheet – platform for further For personal use only growth Jun-12 Jun-11 $ $ ASSETS $6.7m cash at bank – note Ward CURRENT ASSETS Cash and cash equivalents 6,758 1,567 acquisition part payment ($2m) Trade receivables 2,785 2,539 made August 12, $0.9m dividend Other assets 162 259 TOTAL CURREN
Slide 23: Revenue by Product
For personal use only Revenue by Product ($’000) FY Jun 2011 FY Jun 2012 Activ8 - 63% of revenue $10,826 $9,110 AEX – 31% of revenue large – 26% small sites – 5% $5,227 $4,248 Activ8+ - revenue surpassed $1 million in FY12 - seeing positive momentum into FY13 $1,006 $634 87% of customers
Slide 24: Future Income - by Product
For personal use only Future Income - by Product ($’000) FY Jun 2011 FY Jun 2012 Future income was at a record $64,974 high $65 million at 30 June 12 (now $70 million) $56,804 $46,300 $54,100 Provides secure, recurring revenue streams Future income is not recognised on the balance sheet $7,800
Slide 25: 3. Operational Highlights
For personal use only 3. OPERATIONAL HIGHLIGHTS 22
Slide 26: FY12 Operational Highlights
For personal use only FY12 Operational Highlights • NPAT growth driven by a number of factors: 4% increase in use of EAX‟s reverse auction platform – Australian Energy Exchange 14% increase in auction sites under contract to 8,183 at 30 June 2012 17% increase in Activ8 sites under contract to
Slide 27: Operational highlights
For personal use only Operational highlights Australia’s largest intermediary for large Commercial and Industrial (AEX) customers with over 8,000 sites under active or future energy contracts Broad industry and customer mix 24
Slide 28: Diversified Customer Base
For personal use only Diversified Customer Base 25
Slide 29: 4. Ward Consulting
For personal use only 4. WARD CONSULTING 26
Slide 30: Acquisition - Ward Consulting
For personal use only Acquisition - Ward Consulting • A leading and profitable energy management business founded in 1999 by Jenny Ward Ward Consulting Services (nsw) Pty Ltd ABN 12 087 790 903 • Provides sustainability and efficiency reporting (NGERS, EEO) to a range of customers with a focus on pr
Slide 31: 5. Outlook
For personal use only 5. OUTLOOK 28
Slide 32: Drivers for Growth
For personal use only Drivers for Growth AEX is an unrivalled service offering and a foundation for growth: o Gives EAX access to large potential customer base o Can market complementary services to AEX customers Growing trend amongst companies to outsource non- core services such as energy mana
Slide 33: FY13 Outlook
For personal use only FY13 Outlook Very well placed to continue delivering strong revenue and NPAT growth Future revenue at over $70 million from broad mix of stable and long-term customers Company expanding geographical footprint – recently opened WA sales office Expansion of energy managem
Slide 34: 6. Formal Business
For personal use only 6. FORMAL BUSINESS 31
Slide 35: Procedural Matters
For personal use only Procedural Matters • If there are any Shareholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk • Shareholders holding a red card are not eligible to vote but can speak at
Slide 36: General Business
For personal use only General Business • First Item of business: Consideration of the annual report, financial report, Directors report and Auditors report for the financial year ended 30 June 2012 • No questions for Ernst & Young were received • Mr Schalk Barnard of Ernst & Young will answer any qu
Slide 37: General Business: Formal Resolutions
For personal use only General Business Formal Resolutions: • Resolutions 1, 2, 3 and 4 are proposed as ordinary resolutions and will be approved if passed by more than 50% of votes cast by members entitled to vote on the resolution. • Resolutions 5 is proposed as a special resolution and will be app
Slide 38: Resolution 1: Re-election of Paul Meehan
For personal use only Resolution 1 "That Mr Paul Meehan, a Director of Energy Action Limited retiring in accordance with the Constitution, is re-elected as a Director of Energy Action Limited.“ Resolution 1 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast
Slide 39: Resolution - Proxies
For personal use only Resolution 1 - Proxies For: 12,619,054 (99.74%) Open: 28,275 (0.22%) Against: 5,000 (0.04%) Abstain: 0 36
Slide 40: Resolution 2: Election of Murray Bleach
For personal use only Resolution 2 "That Mr Murray Bleach, who was appointed as a Director of Energy Action Limited by the Board to fill a casual vacancy, is elected as a Director of Energy Action Limited.” Resolution 2 is an ordinary resolution, and will be approved if passed by more than 50% of th
Slide 41: Resolution - Proxies
For personal use only Resolution 2 - Proxies For: 12,624,054 (99.78%) Open: 28,275 (0.22%) Against: 0 (0.00%) Abstain: 0 38
Slide 42: Resolution 3: Remuneration Report
For personal use only Resolution 3 "That the Remuneration Report included in the Financial Report for the year ended 30 June 2012 be adopted." Resolution 3 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast by members entitled to vote on the resolution. 39
Slide 43: Resolution - Proxies
For personal use only Resolution 3 - Proxies For: 1,356,354 (97.26%) Open: 28,275 (2.03%) Against: 10,000 (0.72%) Abstain: 25,000 40
Slide 44: Resolution 4: Appointment of auditor
For personal use only Resolution 4 “That, for the purpose of section 327B of the Corporations Act and for all other purposes, Ernst & Young, having: a) been nominated by a Shareholder of the Company; and b) provided, and not withdrawn, written consent to act as auditor of the Company, be appointed a
Slide 45: Resolution - Proxies
For personal use only Resolution 4 - Proxies For: 12,624,054 (99.78%) Open: 28,275 (0.22%) Against: 0 (0.00%) Abstain: 0 42
Slide 46: Resolution 5: Listing Rule 7.1A placement capacity
For personal use only Resolution 5 “That, for the purposes of Listing Rule 7.1A of the ASX Listing Rules and for all other purposes, the Shareholders of the Company approve and authorise the Company to issue by way of placements, up to 10% of the issued capital of the Company: a) calculated: i. at t
Slide 47: Resolution - Proxies
For personal use only Resolution 5 - Proxies For: 12,588,384 (99.57%) Open: 33,275 (0.26%) Against: 20,670 (0.16%) Abstain: 10,000 44
Slide 48: Questions & meeting close
For personal use only Questions & meeting close 45
Slide 49: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Energy Action Limited. 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 offer
Slide 50: Further information
For personal use only Further information Val Duncan Managing Director 02 9633 6403 valduncan@energyaction.com.au Nathan Francis Chief Financial Officer & Company Secretary 02 9633 6405 nathanfrancis@energyaction.com.au 47