Energy Action Limited · ASX:EAX
Energy Action — H1 FY2015 Earnings Presentation
33 slides from Energy Action's earnings presentation, Feb 19, 2015
Slide 1: Financial Results Presentation for the half year ended 31 December 2014
For personal use only Financial Results Presentation for the half year ended 31 December 2014 Presented by Mr Scott Wooldridge Chief Executive Officer Energy Action Limited 1
Slide 2: Contents
Contents For personal use only 1. Business Overview 2. Financial Results 3. Operational Performance 4. Integration Update 5. Outlook 2
Slide 3: Business Overview
3 For personal use only Business Overview
Slide 4: We are a leading energy management consultancy
We are a leading energy management consultancy For personal use only • Created the market for online reverse auctions for electricity – settled approximately $7 billion worth of electricity contracts since 2009 • Market leading energy management capabilities across procurement, monitoring and Projec
Slide 5: Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle
Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle For personal use only 5
Slide 6: Our Strategy: Create a Unique Market Position
Our Strategy: Create a Unique Market Position For personal use only Data Integrity & Completeness We have a comprehensive, transparent view of the market and the past, current and (potentially) future energy use within our client base that provides a high degree of market certainty for all participa
Slide 7: Executing against strategy
Executing against strategy For personal use only Revenue increase of 30% Actionable Customer Insights Data Integrity & Completeness Trusted Partner Launch of Client Portal Acquisition of EnergyAdvice January 2015 August 2014 Enhancement of the Australian Integration Progress for Exergy and Energy Ex
Slide 8: Simplified Executive Team
Simplified Executive Team Scott Wooldridge use only CEO Paul Cooper Helge Sangkuhl Michael Fahey Service Delivery and Operations Sales Director Energy Procurement CFO Director Corporate Functions Client Management Martin Becker David Rylah Madeline Sedrak For personal Strategic Client Services Human
Slide 9: 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 2014) $55.5 million Share Price $1.90-$3.80 (52 week High/Low) Shareholders 757 Top 20 holding 82.7% Board of Directors Substantial Shareholders % Dr.
Slide 10: Future Contracted Revenue resumes growth trend
Future Contracted Revenue resumes growth trend $77.4 million1 as at Dec 2014 vs $74.5 million as at June 2014 For personal use only Future Contracted Revenue Future Contracted Revenue realisation year FY15 balance of year $13.2 million and FY16 - $20.3 million 18 90 16 15.3 80 4.1 5.0 14 13.1 70 60
Slide 11: Financial Results
11 For personal use only Financial Results
Slide 12: H1 FY15 Financial Highlights
H1 FY15 Financial Highlights For personal use only • Revenue growth of 30% fuelled by acquisitions of Exergy & Energy Advice • Acquisition of EnergyAdvice in August 2014 tracking as per business case • Integration of EnergyAdvice and Exergy tracking to plan, management teams integrated • Benefits of
Slide 13: Operating NPAT at $1.7 million
Operating NPAT at $1.7 million 2014 2013 $ $ For personal use only Total Revenue 15,605,738 12,039,378 Revenue up 30% Cost of goods and services sold 2,240,253 1,196,637 Employee benefits expense 7,587,864 5,831,868 Share based payments on employee share schemes 88,822 17,391 Deferred consideration
Slide 14: Statutory to Operating Profit reconciliation
Statutory to Operating Profit reconciliation For personal use only $000’s 31 Dec 2014 31 Dec 2013 % variance Statutory net profit / (loss) after tax (420) 1,927 -122% Adjust for the following items: Employee share based payments 89 17 424% Deferred consideration on acquisitions 1,678 - N/A Restructu
Slide 15: Strong revenue growth across all divisions
Strong revenue growth across all divisions Revenue up 30% versus prior period For personal use only • All areas showing strong Total revenue growth +30% revenue growth: 9,000,000 • PAS +107% 8,000,000 • Procurement +44% • Monitoring +6% 7,000,000 6,000,000 5,000,000 • EnergyAdvice has 4,000,000 cont
Slide 16: Operating costs
Operating costs* Cost growth driven by acquisitions - base costs controlled, further productivity measures planned for 2nd half For personal use only Operating Costs 12,000,000 EnergyAdvice added $1.7 10,000,000 million to cost base Cost growth pre Energy Advice and including impact of Exergy 8,000,
Slide 17: Operating cash flow reflects M&A related outflows
Operating cash flow reflects M&A related outflows 2014 2013 $ $ For personal use only CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of GST) 17,264,702 13,088,990 Payments to suppliers and employees (inclusive of GST) -14,730,274 -10,273,587 Payments for deferred considerati
Slide 18: Debt structure and key financial ratios
Debt structure and key financial ratios EAX entered into a 5 year, $12 million multi-option facility agreement in October 2014 For personal use only • Can be utilised for borrowings, bank guarantees or letters of credit • Current utilisation comprised of $4.25 million loan and $6.284 million in bank
Slide 19: Balance Sheet reflecting impact of acquisitions
Balance Sheet reflecting impact of acquisitions 31-Dec-14 30-Jun-14 $ $ For personal use only CURRENT ASSETS Cash and cash equivalents 1,768,540 4,556,558 Reduction in cash following acquisition's Restricted cash 1,000,000 1,000,000 Trade and other receivables 5,440,036 5,293,181 Other assets 1,625,
Slide 20: Operational Performance
For personal use only Operational Performance 20
Slide 21: Revenue up 30% to $15.6m
Revenue up 30% to $15.6m For personal use only • Projects and Advisory Services revenue up 107% to $3.712m. Full year contribution of Exergy being realised in FY2015. 3,046 , 20% 3,712 , 24% • Contracts Management Revenue up 6% 382 , 2% against FY2014 with service delivery for a 456 , 3% number of l
Slide 22: Energy Procurement
Energy Procurement H1 FY H1 FY Variance For personal use only • The Australian Energy Exchange 2015 2014 (AEX) is Energy Action’s online reverse auction platform. No of Auctions / tenders3 960 680 41% Average electricity contract duration 26mth 27mth - • Energy suppliers competitively bid for large
Slide 23: Energy Procurement: Large Market Electricity Procurement Auctions
Energy Procurement Large Market Electricity Procurement Auctions For personal use only • Low first half FY2014 volumes driven predominantly by sales team restructure April 2013 • Recovery in second half FY2014 back to historical levels • The EnergyAdvice acquisition provided significant upside to vo
Slide 24: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only • Activ8 platform provides contract management services via automated monitoring and reporting– highly scalable • EnergyAdvice provides an aligned service called EnergyMetrics • Key Customer deliverables are: • Monthly Bill Validations • A
Slide 25: Contract Management & Energy Reporting
Contract Management & Energy Reporting Service Offer H1 FY 2015 H1 FY 2015 H1 FY 2014 H1 FY 2015 For personal use only Annual Annual No. of active2 No. of active2 contract value contract value contracts contracts Activ8 Gold1 4801 $2,680 4993 $2,585 Activ8 Silver1 142 $2,225 131 $2,110 Activ8 Bronze
Slide 26: Projects & Advisory Services (inc Exergy)
Projects & Advisory Services (inc Exergy) Total Annual Potential Market (Millions) For personal use only • Efficiency and sustainability consultancy services provided by engineers and Compliance and commercial specialists across a range of Sustainability energy efficient technologies Energy Audits,
Slide 27: Projects & Advisory Services (inc Exergy)
Projects & Advisory Services (inc Exergy) For personal use only • Significant first half revenue growth however behind initial expectations • Division will be profitable in FY2015 • Energy Action’s Dr Paul Bannister wins prestigious Energy Efficiency Council’s award: ‘2014 Energy Efficiency Champion
Slide 28: Acquisition Update
28 For personal use only Acquisition Update
Slide 29: Update on progress of integration of acquisitions
Update on progress of integration of acquisitions • Delivering on key strategic intent – consolidating the brokerage market For personal use only • Management teams integrated and new management structure announced • Revenue synergies are being realised Focus for balance of FY15 and FY16 • Consolida
Slide 30: Outlook
30 For personal use only Outlook
Slide 31: FY2015 Outlook
FY2015 Outlook For personal use only • Core focus is the finalisation of the integration of Exergy and EnergyAdvice to ensure revenue and cost operational efficiencies are achieved • Continued enhancements to key operational platforms • Enhancements to AEX platform to cater for tenders and RFP’s • P
Slide 32: Further information
Further information For personal use only Scott Wooldridge Chief Executive Officer 02 9633 6471 scott.wooldridge@energyaction.com.au Michael Fahey Chief Financial Officer 02 9633 6405 michael.fahey@energyaction.com.au 32
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Energy Action Limited ABN: 90 137 363 636. For personal use only 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