Energy One Limited · ASX:EOL
Energy One — Investor Presentation (October 2014)
33 slides from Energy One's investor presentation, Oct 16, 2014
Slide 1: Investor Briefing
Investor Briefing1 16th October 2014 For personal use only Energy One Limited (ASX:EOL) is a market-leading supplier of trading and risk management technologies for wholesale energy markets
Slide 2: Disclaimer
2 Disclaimer For personal use only This document has been prepared by Energy One Limited (EOL) and accuracy or completeness of the forward looking statements and comprises written materials and slides for a presentation concerning exclude all liability whatsoever (including negligence) for any direc
Slide 3: Contents
3 Contents For personal use only Company Overview 4 Market Details 5 Energy Market – Structure 6 Typical Energy Market Structure 7 Australian Energy Market 9 Products & Services 12 Wholesale Energy Trading Suite of Software Products 13 Services 14 EnergyOffer 15 EnergyOne Trading 16 EnergyFlow 17 Ov
Slide 4: Company Overview
4 Company Overview For personal use only Strategic Positioning: Lead Product: Market leader of high value Wholesale Energy Trading Suite – a software products and services to comprehensive, integrated software wholesale energy, environmental system for managing wholesale and carbon trading markets i
Slide 5: Market details
5 Energy One Limited Market details For personal use only Summary Board & Management Ord. Shares on Issue 17.9m Ottmar Weiss Chairman Share Price @ 15/10/14 $0.38 Shaun Ankers CEO / Director 12 month range 10c – 49.5c Andrew Bonwick Director Market Cap $6.8m Vaughan Busby Director Net Debt (cash at
Slide 6: Energy Market - Structure
6 For personal use only Energy Market - Structure
Slide 7: Typical Energy Market Structure
7 Typical Energy Market Structure The trading market in which our clients operate For personal use only Exchange Traded Energy TRADED ENERGY Derivatives Financial Traders Consumers (Industrial) Energy Pool Market Producers Energy for Energy (Generators) Retailers Energy B2B OTC Consumers Contracts (
Slide 8: Typical Energy Market Structure (cont.)
8 Typical Energy Market Structure (cont.) For personal use only Sophisticated systems are required by Participants to manage the complex and inter-dependent trading arrangements Wholesale energy trading markets typically comprise both formal (B2M) and informal (B2B) markets The wholesale marke
Slide 9: Australian Energy Market
9 Australian Energy Market One of the most diverse and sophisticated markets in the world For personal use only Diverse weather 25,000 km of gas conditions create pipelines create gas different market prices logistics issues in different States Electricity pricing can Gas traded in 5 different fluct
Slide 10: Australian Energy Market (cont.)
10 Australian Energy Market (cont.) For personal use only Is comprised of the formal markets for electricity and gas in the: National Electricity Market (NEM) – energy based market STTM and DWGM gas markets (eastern seaboard) Wholesale Electricity Market (WA) – capacity and energy market W
Slide 11: Australian Energy Market (cont.)
11 Australian Energy Market (cont.) For personal use only Carbon/Environmental: Market rules also exist for trading in environmental certificates for Renewable Energy Target (RET) and other State based environmental certificate scheme obligations. Informal markets (B2B or Bilateral) exist for ga
Slide 12: Products & Services
12 For personal use only Products & Services
Slide 13: Wholesale Energy Trading Suite of Software Products
13 Wholesale Energy Trading Suite of Software Products Energy trading management operations system For personal use only EnergyOffer EnergyOne EnergyFlow Trading Physical energy Energy trading Energy business bidding & risk workflow platform management automation platform A high performance market P
Slide 14: Services
Services 14 As well as provision of software and implementation and support, Energy One offers a complete services for wholesale energy trading clients. For personal use only Consulting Managed Technology Service Software Energy market and energy information Market data store hosting & maintenance D
Slide 15: EnergyOffer
15 EnergyOffer Multi-commodity, multi-market platform for physical (spot) trading For personal use only The Challenge: Achieve compliant, reliable spot energy trading in the fast-moving 24/7 energy markets where prices change every 5 minutes The Solution: Turnkey enterprise platform for high volume,
Slide 16: EnergyOne Trading
16 EnergyOne Trading A turn-key, best-in-class ETRM solution for energy clients For personal use only The Challenge: To hedge risk, manage and settle a vast variety of complex trading contracts(5) and energy derivatives The Solution: Complete, out-of-the-box, integrated energy contracts management s
Slide 17: EnergyFlow
17 EnergyFlow Energy operations software For personal use only The Challenge: To manage the wide variety of individual transactions and tasks associated with energy trading operations and logistics The Solution: EnergyFlow – A new product to offer simplified, repeatable automation of energy tasks wi
Slide 18: Overcoming Challenges
18 Overcoming Challenges Energy One solves challenges for wholesale energy management For personal use only Not yet Participant Challenges faced EnergyOffer EnergyOne Trading EnergyFlow offered Accurate, compliant energy pool bidding Pool reconciliation Energy operations (bid prepn, nominations,
Slide 19: Market Potential & Competitive Position
19 For personal use only Market Potential & Competitive Position
Slide 20: Clients & Customers
20 Clients & Customers Energy One works with energy market participants For personal use only Large Retailers – of gas and electricity, with customer bases of millions of customers Energy generators representing 15 GW+ of capacity, including: Baseload power stations Peak load generators Re
Slide 21: Market Potential by Product Type
21 Market Potential by Product Type Energy One works with blue-chip energy market participants For personal use only EnergyOffer EnergyOne EnergyFlow Spot market Trading Energy trading trading Contracts operations trading Fragmented market. Mix of vendors and The term for this family of systems
Slide 22: Competitive Landscape
22 Competitive Landscape Energy One offers broad and deep solution set For personal use only Competitor 1 Competitor 2 Energy One Internal Build(7) “Global player” “Local niche vendor” Australian market-compliant Yes No Yes Yes Software-as-a-Service (SaaS) Yes No No No Cloud-based offerings Yes No N
Slide 23: Growth opportunities
23 For personal use only Growth opportunities
Slide 24: Expansion Plan
24 Expansion Plan Near term growth strategy For personal use only Diversification Product range. Considerable investment Grow customer base made to produce innovative new products to address market needs Opportunity exists to add/enhance tools Offer suite of products/services as single- Grow by acqu
Slide 25: Financials
For personal use only Financials 25
Slide 26: Income Statement
26 Income Statement For personal use only Income Statement Comments $’000 2012 2013 2014 Increase is from investment over past 2 years including contract wins with 2 major Australian Revenue 2,262 1,844 2,848 energy utilities Other revenue 674 601 606 R&D Grant and interest. Consistent based on deve
Slide 27: Income Statement (Cont)
27 Income Statement (Cont) For personal use only 3m 1.0m 6c 0.5m 3c 2m - - FY'12 FY'13 FY'14 1m (0.5)m (3)c (1.0)m (6)c - FY'12 FY'13 FY'14 EBITDA NPAT EPS First Time Recurring Goal: Leverage the new product/project investment to grow EOL leverages first-time engagements to generate recurring revenu
Slide 28: Balance Sheet
28 Balance Sheet For personal use only Balance Sheet Comments $’000 2012 2013 2014 Cash and cash equivalents 1,844 1,721 1,398 Reduction in cash the result of investment into development of product suite. Increase in receivables ($650k) from project wins in H2/14. Accrued income ($720k) is new work
Slide 29: Summary
Summary 29 An exciting market, good products & services and sound management For personal use only track record Compelling value proposition – EOL offers Market potential – energy mission-critical, enterprise Market leadership - leading trading software is exciting grade software and services domest
Slide 30: Contact Us
30 Contact Us To participate in the future of Energy One For personal use only Energy One is a leader in the market, with scope to capitalise on its investments, capabilities and asset base to deliver sustained, long term growth Mr Shaun Ankers CEO / Director Head Office: Level 14, 71 Macquarie St,
Slide 31: Appendix
For personal use only Appendix 31
Slide 32: Company history
32 Company history Change of focus from retail to energy software For personal use only Wins contracts Acquires Hard Energy Retailing Exit from retail Success in ETRM Software Energy One starts Market trading software Gains capability life as the first conditions force space, proving and customers t
Slide 33: References & Further information
33 References & Further information For personal use only 1. AEMO Annual Report 2013 www.aemo.com.au/About-AEMO/Corporate-Publications/AEMO-Annual-Report and https://asxenergy.com.au/newsroom/energy_focus/cal_2013 2. EOL management estimate based on publicly available data. www.aemo.com.au/Electrici