Slide 1: Financial Results Presentation for the 6 months ended 31 December 2013
For personal use only E Energy Action A ti (EAX) Financial Results Presentation for the 6 months ended 31 December 2013 Date: 18th February y 2014
Slide 2: Contents
Contents For personal use only 1. Business Overview 2 Financial Res 2. Results lts 3. Operational Performance 4. Outlook Page 2 | 26
Slide 3: 1. Business Overview
For personal use only 1. BUSINESS OVERVIEW Page 3 | 26
Slide 4: Australia's Leading Energy Management Company
Australia’s Leading Energy Management Company For personal use only • Created the market for online reverse auctions Energy Proc Energ Procurement rement for electricity – settled approximately $6 billion Australian Energy worth of electricity contracts since 2005. Exchange • Growing energy manageme
Slide 5: Where does Energy Action fit into the energy market?
Where does Energy Action fit into the energy market? For personal use only Energy Action can reduce business’s business s reliance on grid supplied electricity by managing energy price, quantity, source & compliance Page 5 | 26
Slide 6: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure 12mth Share Price Performance ASX Code EAX Shares on Issue 25.8 million Market Cap (31 Dec 2013) $85 million Share Price $2.70 - $4.35 (52 week High/Low) Cash at Bank (31 Dec 13) $6.4 million Debt Nil Shareholders 900 Top 20 holding 78% Boar
Slide 7: Financial Performance
Financial Performance For personal use only 1H FY14 margins impacted by lower revenue growth and planned higher overheads resulting from investment in Sustainability and sales related staff resources NPAT Margin Employee Costs EBITDA Margin Future Contracted Revenue Page 7 | 26
Slide 8: 2. 1H FY14 Financial Results
For personal use only 2 1H FY14 FINANCIAL 2. RESULTS Page 8 | 26
Slide 9: 1H FY14 Financial Highlights
1H FY14 Financial Highlights g g For personal use only • Revenue up 17% to $12.1 million • Dividend de d pe per sshare ae3 3.73 3 ce cents s – up 5% 000’s 1H 14 1H 13 Change Revenue 12,135 10,346 1,789 17% Revenue up 17% to $12.1 million Statutory NPAT 1,927 1,799 128 7% 1 Operating1 NPAT down 14% d
Slide 10: 1H FY14: Income Statement
1H FY14: Income Statement For personal use only 1H FY14 margin impacted by lower revenue growth and higher overheads resulting from investment in Sustainability and sales related staff resources 000’s 1H FY14 1H FY13 Change g 17% revenue growth driven by $ $ Activ8 and Sustainability Solutions Reven
Slide 11: Revenue up 17% to $12m
Revenue up p 17% to $12m For personal use only 000’s 1H FY14 1H FY13 Change $ $ Activ8 revenue (up 14%) - Revenue accounts for 57% of total Monitoring 6,959 6,109 14% revenue. Auction – large sites 1,978 2,138 (7%) Auction – small sites 405 215 88% Gas procurement 221 216 2% Sustainability Solutio
Slide 12: 1H FY14: Delivering Strong Cash flow
1H FY14: Delivering Strong Cash flow For personal use only 000’s 1H FY14 1H FY13 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts driven by 17% revenue Receipts from customers 13,089 10,875 growth Payments to suppliers and employees (10,274) (7,346) Acquisition costs (29) (491) Payments y up 39% ((
Slide 13: Strong Balance Sheet
Strong Balance Sheet For personal use only 000’s Dec 13 June 13 $ $ CURRENT ASSETS Cash and cash equivalents 6,368 6,444 $6.4m cash provides funding for Trade & other receivables 3,639 3,514 growth. Final Ward payment made in Other assets 901 981 TOTAL CURRENT ASSETS 10,908 10,939 September 2013 ($0
Slide 14: 3. Operational Performance
For personal use only 3. OPERATIONAL 3 PERFORMANCE Page 14 | 26
Slide 15: Energy Procurement
Energy Procurement For personal use only The Australian Energy Exchange (AEX) is Energy Action’s online reverse auction 1H FY14 1H FY13 Variance platform. Energy p gy suppliers pp competitively p y f l1 auctions N off successful No. ti 680 714 (5%) bid for our customers energy needs. Average aucti
Slide 16: Energy Procurement: Renewal cliff opportunity
Energy Procurement For personal use only Renewal cliff opportunity Due to the uncertainty as a result of carbon tax customers did not renew beyond 2015. EAX has 5,236 sites due for renewal between June 2014 and December 2014 and 7,133 sites between June 2015 and December 2015. 77% of sites und
Slide 17: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only Monitoring via Activ8 platform - contributes 60% of total revenue. Activ8 platform provides contract 1H FY14 1H FY13 Variance management services via automated monitoring and reporting– reporting highly scalable. Average Activ8 contrac
Slide 18: Sustainability Solutions
Sustainability y Solutions For personal use only • Efficiency and sustainability consultancy $000’s 1H FY14 1H FY13 Variance services provided by engineers and Revenue (ex Ward) 1,795 701 156% commercial specialists across a range of energy efficient technologies. Cost of goods sold (1,196) (279) Gr
Slide 19: Case Study: Sirromet Wines
Case Study: y Sirromet Wines For personal use only Sirromet Wines is a 5 star winery located outside of Brisbane. Energy Action commissioned a 200kW solar power solution for f Sirromet. Expected results of the partnership: A reduction in annual energy spend of $50,000 equivalent to 20% savin
Slide 20: Diversified Customer & Industry Base
Diversified Customer & Industry Base For personal use only Page 20 | 26
Slide 21: Market Share – significant scope to increase our penetration
Market Share – significant scope to increase our penetration For personal use only Growing trend amongst companies to outsource non- core services such as energy management and sustainability*. Broker market is fragmented – consolidation opportunity. AEX is an unrivalled service offering and a
Slide 22: Increasing use of energy brokers
Increasing use of energy brokers 40% of C&I businesses use energy broker For personal use only Utility Market Intelligence (UMI) report dated July 2013 (17th in the series) - survey of 598 large commercial and industrial customers (C&I). C&l customers of retailers in NSW, ACT, Victoria, Queensla
Slide 23: 4. Outlook
For personal use only 4. OUTLOOK Page 23 | 26
Slide 24: FY14 outlook
FY14 outlook For personal use only As announced on 19 December 2013, Energy Action expects FY14 operating p g NPAT to be approximately pp y in line with FY13 operating NPAT of $5 million. This guidance is reaffirmed. Earnings g are expected p to be weighted g to the second half due to the likely
Slide 25: Further Information
Further Information For personal use only Scott Wooldridge Chief Executive Officer 02 9633 6471 scottwooldridge@energyaction.com.au Nathan Francis Chief Financial Officer & Company Secretary 02 9633 6405 nathanfrancis@energyaction.com.au Page 25 | 26
Slide 26: Disclaimer
Disclaimer sc a e 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 a