Epx Limited · ASX:EPX
Epx — EP&T Global — Investor Presentation (November 2022)
36 slides from Epx's investor presentation, Nov 24, 2022
Slide 1: Equity Raise Presentation
For personal use only Environment, Property & Technology Delivering operational efficiency and significant energy savings in all forms of commercial real estate Equity Raise Presentation November 2022
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: Foreign selling restrictions
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 For personal use only and agents, have authorised, permitted or caused th
Slide 6: For personal use only
For personal use only “For over 25 years EP&T Global has been a leader in reducing operating costs and delivering energy efficiency in the built environment.”
Slide 7: Executive Summary
Executive Summary ⚫ In FY23 YTD, EP&T has been awarded multiple new contracts with a combined Total Contract Value (TCV) of $2.7 million For personal use only ⚫ These contracts are comprised of upfront project revenues totalling $1.1 million and an Annualised Contract Value FY23 trading (ACV) of $0.
Slide 8: Corporate Snapshot
Corporate Snapshot ASX: EPX Board and management For personal use only Share price (22 November 2022) A$0.039 Chairman Jonathan Sweeney Fully Paid Ordinary Shares 240,799,500 Options on issue 18,622,287 Executive Director & Interim CEO John Balassis Undiluted Market Capitalisation $9.4 million Non-e
Slide 9: EP&T Global – Company Overview
EP&T Global – Company Overview Proprietary technology solution - combines multiple information sources with cloud-based data analytics to detect real-time energy inefficiencies in buildings. This highly accurate identification of faults and inefficiencies enables EP&T to collaborate with building Fo
Slide 10: Market tailwinds supporting EP&T's core strength – granular, accurate data
Market tailwinds supporting EP&T’s core strength – granular, accurate data EP&T’s technology has the ability to capture and analyse granular data from multiple sources within a building ecosystem. This is a key differentiator from competitors who may source data solely from a For personal use only B
Slide 11: Edge Data Sources
Edge Data Sources Edge monitors energy consumption and environmental conditions in buildings via multiple data sources. For personal use only • Edge gathers data from internal and external sources including: – baseline energy data from utility meters – weather data – occupancy tracking systems – Bui
Slide 12: Edge – Proprietary Technology Platform
Edge – Proprietary Technology Platform Edge is our digital technology platform for utility monitoring, billing and analytics For personal use only DATA SOURCES AGGREGATE & ANALYSE PERFORMANCE OPTIMISATION BMS DATA WEATHER MANAGEMENT ALERTS/FAULTS REPORTING TRIAGE ENERGY + WATER SUSTAINABILITY HEALTH
Slide 13: Edge MARS Alert Example
Edge MARS Alert Example 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 • Corrected energy consumption Opportunity:
Slide 14: Energy Savings & Improved Sustainability Ratings
Energy Savings & Improved Sustainability Ratings EP&T has a proven track record of reducing energy consumption, delivering financial savings and improving building sustainability ratings across its client portfolio For personal use only Annualised energy savings by site • Portfolio average energy re
Slide 15: Long-term client relationships
Long-term client relationships EP&T’s proven and consistent energy savings and improved building sustainability ratings performance has led to long-term client relationships For personal use only ONGOING SITE RELATIONSHIP LENGTH1 (YEARS) • Average client relationship of 3.9 years • Average client re
Slide 16: Global Clients Win Multiple Sustainability Awards
Global Clients Win Multiple Sustainability Awards… Multiple EP&T clients have won the world’s most prestigious energy efficiency and sustainability awards for the last 10 years. A selection of awards won since 2016 by our clients is shown below. For personal use only 5 STAR – GRESB Global Sector Lea
Slide 17: International Client Base – countries in continents
International Client Base – 26 countries in 5 continents International client base currently installed in +470 buildings For personal use only Contracted Building #s EUROPE • Office in London 500 • 143 sites in United Kingdom and greater Europe including Holland, Portugal, ASIA 450 Belgium, Poland,
Slide 18: Operating Metrics
For personal use only Operating Metrics
Slide 19: Positive Trends in EP&T's Key Operating Metrics
Positive Trends in EP&T’s Key Operating Metrics ARR increased 74% in FY22 to $9.2m and target to achieve $13.5m in Q3 FY23 For personal use only • Annualised Recurring Revenue (ARR1) increased $'000 Jun-20 Jun-21 Jun-22 74% in FY22 to $9.2m and contracted projects (once installed) with an ARR of $3.
Slide 20: Annualised Contract Value (ACV)
Annualised Contract Value (ACV) ACV of $13.3m at June 2022 with forecast FY23 estimated range $15.0m-$16.0m For personal use only Total ACV ($m) • At June 2022 ACV is $13.3 million, an increase of $2.4m (23%) from June 2021. FY 23 Estimate ACV $15m- $16m(3) Increase = $1.7m - $2.7m • ACV of ~$14.5m
Slide 21: ARR increase of 74% from conversion of ACV in FY22
ARR increase of 74% from conversion of ACV in FY22 Target ARR of $13.5m by end Q3FY23 to achieve operating cashflow breakeven2 For personal use only ARR growth on implementation of backlog ($m) • Subscription-based engagement model drives ACV and ARR growth Q3FY23 target ARR = $13.5m 14.0 (47% incre
Slide 22: International Growth Trajectory
International Growth Trajectory EP&T’s international growth continues with ACV and site metrics increasing despite almost two years of COVID impacts For personal use only Country breakdown ACV and Sites FY20 - FY22 • EP&T is achieving growth in its 3 $7.0 250 main markets of Europe, Middle East and
Slide 23: Areas of Focus: Targeting profitable growth
For personal use only AREAS OF FOCUS Targeting profitable growth
Slide 24: EP&T is focussing on profitable growth
EP&T is focussing on profitable growth Alongside continuing to deliver growth in key markets, EP&T has identified 3 levers to focus on to deliver growth profitably For personal use only • Projected to be reached at ARR of ~$13.5m - Target Q3 FY23 through: ‒ Focussing on blue chip brands with global
Slide 25: EP&T's product journey will continue to build on our leading data skillsets
EP&T’s product journey will continue to build on our leading data skillsets Access and use to granular, reliable data will allow us to meet the evolving requirements of our market For personal use only Core Product- EDGE Horizon 1 (today) Active Energy & Water Horizon 2 Management Active Building Ho
Slide 26: Improving Operating Metrics
Improving Operating Metrics Operating performance metrics are also improving with more work to be done For personal use only Category Description FY21 FY22 Break-even FY23 focus target (Q3FY23) Direct Costs Employee and $3.2m $4.1m ~$4.4m • Core project delivery teams now in place to service (% of A
Slide 27: Operating Cost Management
Operating Cost Management FY22 saw investment in capacity to service future growth. FY23 focus is on cost management to deliver profitable growth. For personal use only Cost category FY22 commentary FY23 Focus Employee • Increased 16% from $8.9m (FY21) to $10.4m (FY22) • Core delivery teams now in p
Slide 28: Company Highlights
Company Highlights Proven energy saving technology – proprietary technology operating in multiple sectors of For personal use only commercial real estate – portfolio average of 22% pa energy savings resulting in annual reduction of over 100,000 tonnes of CO2 emissions Continued growth in interna
Slide 29: Capital Raising Details
For personal use only Capital Raising Details
Slide 30: Transaction Summary
Transaction Summary • A ~A$5.0 million Capital Raising comprising a Placement and Entitlement Offer (“Offer”): A$0.4 million Institutional Placement (“Placement”) For personal use only – Offer structure – A$4.1 million 1 for 1.47 accelerated non-renounceable entitlement offer and size – A$0.5 millio
Slide 31: Transaction Timetable
Transaction Timetable Key events Indicative dates (2022) For personal use only Trading halt and announcement of Transaction and equity Capital Raising Wednesday, 23 November 2022 Placement bookbuild1 and Institutional Entitlement Offer opens Wednesday, 23 November 2022 Placement and Institutional En
Slide 32: Use of Funds
Use of Funds Category Amount (A$m)1 For personal use only New project installation costs 2.50 Investment in sales, marketing and product development 1.00 Other working capital 1.50 TOTAL 5.00 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 achieve EP&T has historically focused on developing its platform and product and growing its client base through expansion of profitability overseas offices. EP&T changed its client engagement model in FY20 to a subscription based model under which For personal use on
Slide 35: Summary Of Key Risks
Summary Of Key Risks Failure to successfully EP&T is in the early stages of implementing a new growth strategy. There is a risk that EP&T’s business strategy or any implement its business of its growth initiatives will not be successfully implemented, deliver the expected returns or ultimately be pr
Slide 36: For personal use only
For personal use only 36