Epx Limited · ASX:EPX
Epx — Environment, Property & Technology (EP&T Global) — Investor Presentation (February 2024)
39 slides from Epx's investor presentation, Feb 1, 2024
Slide 1: Company Update and Environment, Property & Technology Capital Raising
For personal use only Company Update and Environment, Property & Technology Capital Raising February 2024 Smarter Buildings Happier People Healthier World
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer The following notice and disclaimer applies to this investor presentation (“Presentation”) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting
Slide 3: Important Notices and Disclaimer Continued
Important Notices and Disclaimer Continued Investment Risk An investment in EP&T Global shares is subject to known and unknown risks, some of which are beyond the control of EP&T Global. EP&T Global does not guarantee any particular rate of return or the performance of EP&T Global nor does it guaran
Slide 4: Important Notices and Disclaimer Continued
Important Notices and Disclaimer Continued Foreign selling restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered
Slide 5: Important Notices and Disclaimer Continued
Important Notices and Disclaimer Continued Disclaimer None of the lead manager, EP&T Global or their respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, d
Slide 6: To be the world's most trusted building efficiency platform provider
For personal use only To be the world’s most trusted building efficiency platform provider.
Slide 7: Corporate Snapshot
Corporate Snapshot ASX: EPX Board and key management Share price (31 January 2024) A$0.033 Independent Chairman Jonathan Sweeney Fully Paid Ordinary Shares 445,913,710 For personal use only Executive Director & CEO John Balassis Options on issue 22,325,729 Independent Non-executive Director Victor V
Slide 8: Company Overview
Company Overview Proprietary technology - combines multiple information sources with cloud-based data analytics to detect real- time energy inefficiencies in buildings enabling operational optimisation to deliver significant energy savings For personal use only EDGE building efficiency platform - a
Slide 9: Operational Highlights – at a glance
Operational Highlights – at a glance FY23 Highlights Updated as at Jan 2024 # of building sites globally FY23 Statutory Revenue As at 23 Jan 2024 Annual Contracted Value3 For personal use only 523 $10.6m 30 June 2023 Increase of 50% $15.4m % energy savings FY24 target $16.0-$17.0m FY23 Recurring Rev
Slide 10: EDGE Intelligence System architecture
EDGE Intelligence System architecture EP&T proprietary technology combines multiple information sources with cloud-based data analytics to detect real-time energy inefficiencies in buildings. EP&T collaborates with building managers to improve and optimise building plant operating systems and delive
Slide 11: EDGE Intelligent System – Data Analytics
EDGE Intelligent System – Data Analytics EDGE data analytics collects and analyses Building Management Systems (BMS) and metering data, identifying operational inefficiencies and providing accurate, auditable data to rectify faults and optimise building operations. For personal use only Data Collect
Slide 12: Case Study: Edge MARS Alert Example
Case Study: Edge MARS Alert Example – data drives results EP&T’s 24/7 monitoring of multiple data sources and highly accurate identification of energy inefficiencies enables the detection of many more savings opportunities than our peers For personal use only • Previous energy consumption • Correcte
Slide 13: EDGE product suite
EDGE product suite The EP&T EDGE product suite provides multiple points of engagement with our customers For personal use only Essential Commercial Insight Insight+ Target • Consumption reporting, • Tenant billing and report on • Measure net zero, cost and/or • Specific net zero, cost and/or Custome
Slide 14: Proven and consistent energy savings
Proven and consistent energy savings Portfolio average reduction in energy consumption by 21%, • The current portfolio average energy reductions is 21% Annualised energy savings by site – current portfolio1,2,3 For personal use only − ~ 85% of sites achieving 10% or more savings − ~38% of sites achi
Slide 15: Case study: Commercial – Large UK REIT
Case study : Commercial – Large UK REIT Achieving energy reduction and cumulative savings For personal use only 30% Energy Reduction Building Type: Commercial £455,000 Cumulative Savings One of the largest UK focused REITs with a portfolio of commercial properties comprising over 500,000 sqm. This b
Slide 16: Case study: Hospitality - Major hotel
Case study: Hospitality - Major hotel Achieving energy reduction and cumulative savings For personal use only 25% Energy Reduction Building Type: Hotel $982,000 Cumulative Savings This landmark Australian hotel comprises multiple dining options, cocktail bar, rooftop pool, lounge and bar. EP&T were
Slide 17: Customer base spanning countries and continents
Customer base spanning over 25 countries in 5 continents Site numbers continue to grow, monitoring over 7millionsqm of net lettable area1 and over 1billion kWh annually1 Contracted Building #s For personal use only Building numbers as at 30 June 600 500 523 471 400 387 300 259 244 200 100 0 FY19 FY2
Slide 18: Global Clients obtaining leading sustainability awards
Global Clients obtaining leading sustainability awards Multiple EP&T clients have won the world’s most prestigious energy efficiency and sustainability awards for the last 10 years. For personal use only SUSTAINABILITY YEARBOOK S&P Global CSA (formerly DJSI) CapitaLand, Stockland 2023 SUSTAINABILIT
Slide 19: Long-term customer relationships
Long-term customer relationships EP&T’s consistent energy savings and improved building sustainability ratings performance has led to long-term customer relationships ONGOING SITE RELATIONSHIP LENGTH1 (YEARS) For personal use only • Average client relationship of 4.1 years • Average client relations
Slide 20: Operating Metrics
For personal use only Operating Metrics
Slide 21: Positive operating cash flow achieved in Q1 & Q2 FY24
Positive operating cash flow achieved in Q1 & Q2 FY24 EPX attains a strategic milestone of operating cash flow breakeven in the September 2023 quarter and in December 2023 quarter • Significant improvement in cashflow – $5,000 For personal use only 100% − with a 100% increase in Operating Cash incre
Slide 22: ACV – Projected ACV between $16m-$17m at June 2024
ACV – Projected ACV3,4 between $16m-$17m at 30 June 2024 • At 23 January 2024 ACV was $15.4m, up from 30 September ACV of $14.5m. ACV Profile ($m) For personal use only • FY24 ACV projected3,4,5 between $16.0m to 18.0 $17.0m $17.0m based on qualified identified Near Term Identified pipeline3,4 oppor
Slide 23: ARR – Projected ARR of $13.5m at June 2024
ARR1 – Projected3 ARR of $13.5m at 30 June 2024 Projected2,3,4 ARR • FY23 ARR1 of $11.7m installed as at 30 June 2023, For personal use only a 27% increase from 30 June 2022. 14.0 $13.5m • ARR was $12.2m at 30 September 2023. 1.3 • The business is currently projecting a further $1.3m 12.0 in ARR con
Slide 24: Significant improvement in ARR metrics during FY23
Significant improvement in ARR metrics during FY23 ARR growth and ARR/FTE $14.0 IPO May 2021 ∼100% $200,000 improvement $180,000 $12.0 • ARR per FTE $160,000 For personal use only $10.0 $140,000 – Improved from FY22 of approx. $120k/fte per ARR/FTE $ $120,000 ARR $m annum to FY23 of approx. $174k/ft
Slide 25: FY23 statutory revenue up 50%
FY23 statutory revenue up 50% Statutory revenue changed from predominantly capital in nature to now being 89% recurring • FY19-20 transitioned from capex model to recurring For personal use only subscription revenue model • FY23 total statutory revenue of $10.6m, an increase of 50% from FY22: – Recu
Slide 26: Underlying EBITDA loss reduced by 24%
Underlying EBITDA loss reduced by 24% This has been a turnaround journey from a capital revenue to a recurring revenue business Statutory underlying EBITDA profilew FY19 to FY23 • Underlying EBITDA loss improvement For personal use only by 24% $- June_19(A) June_20(A) June_21(A) June_22(A) Jun_23(A)
Slide 27: Growth Drivers
Growth Drivers • AU, UK and Europe – moving to active energy management requiring accurate date to assist with predictive opportunities which lower costs and ESG reporting Growth markets • Middle East and Asia – principally energy cost reduction focus requiring accurate insights and For personal use
Slide 28: Summary
Summary Proven energy saving technology – proprietary technology operating in multiple sectors of commercial real estate continuing to deliver portfolio average of 21% pa energy savings. For personal use only Continued growth in domestic & international markets – EP&T’s clients include leading b
Slide 29: Capital Raising Details
For personal use only Capital Raising Details
Slide 30: Transaction Summary
Transaction Summary • A ~A$2.30m Capital Raising comprising a Placement and Entitlement Offer (“Offer”): Offer structure and – A$0.8 million Institutional Placement (“Placement”) size – A$1.5 million 1 for 5.95 accelerated non-renounceable entitlement offer For personal use only • The Placement and
Slide 31: Transaction Timetable
Transaction Timetable Key events Indicative dates Trading halt and announcement of Transaction and equity Capital Raising Release entitlement offer cleansing notice and Appendix 3B (before 12.00pm) Thursday, 1 February 2024 For personal use only Placement bookbuild1 and Institutional Entitlement Off
Slide 32: Use of Funds
Use of Funds Category Amount (A$m)1 New project installation costs 1.25 Investment in sales, marketing and product development For personal use only 0.87 Other working capital 0.18 TOTAL 2.30 1. Indicative only, may not add due to rounding 32
Slide 33: Key Risks
For personal use only Key Risks
Slide 34: Summary Of Key Risks
Summary Of Key Risks Failure to achieveFY24 EP&T has provided FY24 ACV guidance of between $16.0 million - $17.0 million comprising Near Term and Identified Pipeline market guidance opportunities. Near Term opportunities of $1.5m are defined as Sales opportunities which have not yet been signed but
Slide 35: Summary Of Key Risks
Summary Of Key Risks Disruption or failure of Both the Group and its clients are dependent on the performance, reliability and availability of the Group’s technology platforms, data technology systems and centres and global communications systems (including servers, the internet and the cloud enviro
Slide 36: Summary Of Key Risks
Summary Of Key Risks Failure to recover The Group is exposed to credit risk from clients. Under the deferred payment arrangement plans and the current data-as-a service receivables from clients model an investment is made by EPX which is then recovered from the customer of the contract term. The ext
Slide 37: Summary Of Key Risks
Summary Of Key Risks Cybersecurity and The use of information technology is critical to the Group’s ability to deliver its products and services to clients and the growth of its Information technology business. Through the ordinary course of business, the Group collects confidential information abou
Slide 38: For personal use only
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Slide 39: The world's most trusted building efficiency platform
For personal use only The world’s most trusted building efficiency platform Smarter Buildings provider Happier People www.eptglobal.com info@eptglobal.com Healthier World Sydney – Australia Dubai – Middle East & Africa T: +61 2 8422 6000 T: +971 4 874 7547 London – UK & Europe Hong Kong – Asia T: +4
Environment, Property & Technology (EP&T Global) — Investor Presentation (February 2024) on 6ix