Tpc Consolidated Limited · ASX:TPC
Tpc Consolidated — Investor Presentation (November 2021)
41 slides from Tpc Consolidated's investor presentation, Nov 26, 2021
Slide 1: Investor Presentation Cover Note
ASX Announcement/Press Release | 26 November 2021 TPC Consolidated Limited (ASX:TPC) Investor Presentation Cover Note For personal use only TPC Consolidated Limited (ASX:TPC) (‘TPC’ or ‘the Company’), the owner and operator of leading electricity and gas retailer CovaU (pronounced “cover you”), is p
Slide 2: About TPC Consolidated
About TPC Consolidated TPC Consolidated Limited (ASX:TPC) owns and operates leading Australian-based electricity and gas retailer CovaU (pronounced “cover you”), which offers competitively priced products to household as well as business (Small Medium enterprises and Commercial and Industrial) custo
Slide 3: Investor Update - TPC Consolidated Limited, November 2021
For personal use only I N V E S TO R U P D AT E TPC CONSOLIDATED LIMITED NOVEMBER 2021
Slide 4: Helping consumers get value for money
For personal use only T P C C O N S O L I D AT E D L I M I T E D Helping consumers get value for money
Slide 5: Introduction
For personal use only INVESTOR UPDATE INTRODUCTION
Slide 6: Our product offering
Our product offering Value for money, flexibility and environmentally friendly For personal use only Low cost, Integrated In-house Customer service High renewables competitive operator business model excellence generation 4
Slide 7: A high growth retail energy utility (2014-2017)
A high growth retail energy utility A sustained growth trajectory For personal use only $1m revenue $50m annualized $65m revenue exceeded Profitable revenue 2014 2015 2016 2017 Acquired NSW electricity Acquired Victorian Launched business and gas licences. electricity and gas insurance offering iGEN
Slide 8: A high growth retail energy utility (2018-2021)
A high growth retail energy utility A sustained growth trajectory For personal use only $77m $81m $85m $93m Annual revenue Annual revenue Annual revenue Annual revenue 2018 2019 2020 2021 Corporate sales Expanded into Expanded into team established Queensland South Australia 12,555 14,345 16,972 23,
Slide 9: Our Australian customer base is getting larger
For personal use only 23,000+ Our Australian Operating in NSW, SME focus Wholly owned footprint is VIC, QLD, SA, ACT & TAS in 2021 customer base and operated 24/7 availability getting larger Expanding into new geographies and market segments Electricity $68.0m Dual fuel In-house direct- Gas $24.7m r
Slide 10: We're getting industry recognition
We’re getting industry recognition Building reputation as a fast growth business For personal use only 4.4 star rating on Gas Plan: QLD Product Review1 Solar-Friendly Electricity: QLD 2020 MOZO EXPERTS CHOICE AWARDS 2 1. https://www.productreview.com.au/listings/covau 2, https://mozo.com.au/energy/a
Slide 11: Corporate overview
Corporate overview Key market statistics/Key metrics For personal use only FY 2021 FY 2020 Share price ($)1 3.50 0.95 Market capitalisation ($m)1 39.8 10.7 EPS ($) 0.41 0.30 P/E Ratio 8.45 3.18 Dividend Yield (%) 5.1 8.4 Payout Ratio (%) 43.4 26.7 1. As at end of financial year 9
Slide 12: 5-year share price chart
5-year share price chart For personal use only 5.00 4.00 3.00 2.00 1.00 0.00 2017 2018 2019 2020 2021 10 As at November 2021
Slide 13: Top shareholders
Top 20 shareholders For personal use only Shareholder1 Shareholding (M) Stake In Company (%) • Majority held by Directors and Mr Chiao Heng Huang2 4.46 39.2 employees and related parties. Barry Christopher Chan 0.70 6.2 Focus Capital Finance Limited 0.54 4.8 Megaway Group Limited 0.54 4.8 Mr Guonan
Slide 14: Greg McCann, Non-Executive Chairman
For personal use only Senior leadership roles: Greg McCann Managing Director Non-Executive Chairman Deloitte Consulting for Australia and New Zealand. 1999 to 2004 Appointed 2 April 2007 Greg has 24 years of financial and technology Managing Partner consulting experience with Deloitte and extensive
Slide 15: Chiao-Heng (Charles) Huang
For personal use only Chiao-Heng (Charles) Huang Managing Director and Chief Executive Officer Appointed 28 February 1996 Charles founded the Company in 1996 as an ISP whilst in his third year of studying towards a Bachelor of Mechanical Engineering degree at Sydney University. Following the deregul
Slide 16: Jeffrey Ma
For personal use only Jeffrey Ma Executive Director, Chief Financial Officer and Company Secretary Appointed 22 November 2004 Jeffrey joined the Company in 2000 with more than 15 years financial services experience. He has over 11 years of financial services experience gained with Credit Lyonnais Au
Slide 17: Steven Goodarzi
For personal use only Steven Goodarzi Executive Director and Chief Strategy Officer Appointed 30 November 2015 Steven joined TPC Consolidated Ltd as its Chief Strategy Officer in 2013 and founded the Company’s CovaU energy business in 2014. He has extensive management and operational experience in s
Slide 18: Corporate Structure
For personal use only INVESTOR UPDATE C O R P O R AT E STRUCTURE
Slide 19: Organisation structure
Charles Huang Chief Executive Officer For personal use only Jeffrey Ma Bing Zhuo Steven Goodarzi Business Analytics Manager Chief Finance Officer Chief Revenue Officer Chief Strategy Officer General Manager Financial Controller Account Management Retail Business General Manager Commercial Manager Co
Slide 20: Our corporate structure
Our corporate structure A growing force in Australia’s retail electricity market For personal use only CovaU is operating in these key markets: • New South Wales • Victoria • Queensland • South Australia. Expanding into Tasmania and ACT in 2021. Our teams are present in each region to serve the cust
Slide 21: Our competitive advantages
Our competitive advantages For personal use only A dual Green power People in region fuel retailer options to help customers 24/7 Multilingual Flexible contact centre support attitude 19
Slide 22: Our superior back office
Our superior back office Customer support a key TPC strength For personal use only End-to-end in-house Team of 100+ Experienced teams to manage employees to help team at hand business processes 24/7 capability Quality Multilingual to help resolve Assurance teams capabilities customer issues 20
Slide 23: Our superior back office
Our superior back office Customer support a key TPC strength For personal use only Implemented Supporting CovaU 100+ Members Competitive in 2006 since 2014 strong cost per agent Operations | Switching | Billing | Collections | Quality Assurance | Network NOC | In/Our bound 21
Slide 24: TPC playing a role in Australia's move to 'Net Zero'
TPC playing a role in Australia’s move to ‘Net Zero’ For personal use only Strategic Up to 100% Bespoke Traceable Partnerships with Green power contract term carbon offset major wind farm and solar farm developers 22
Slide 25: Investment Case
For personal use only INVESTOR UPDATE INVESTMENT CASE
Slide 26: Industry Dynamics
For personal use only INVESTOR UPDATE INDUSTRY DYNAMICS
Slide 27: Profitability variability
Profitability variability For personal use only ▪ Hedging cost ▪ Payment timeliness ▪ Hedging cost ▪ Sustained wholesale ▪ Debt management ▪ Sustained wholesale price spikes price spikes ▪ Seasonal cost variation ▪ Seasonal cost variation (First half of each year (First half of each year experiences
Slide 28: Wholesale electricity pricing dynamics
Wholesale electricity pricing dynamics Spot prices are marching higher For personal use only Wholesale cost volatility 120 ▪ QLD Callide coal fire generator blow up 100 ▪ Higher gas demand closer to winter period, coincides with 80 Callide incident which requires additional gas-fired generator 60 to
Slide 29: Cash management
Cash management For personal use only FY 2021 FY 2020 Cash ($’000) ($’000) management ▪ Net cash used in Investing Receipts from customers 105,037 93,982 activities mainly included a $2m increase in bank deposit, Net cash provided by operating 9,890 2,545 representing credit support activities provi
Slide 30: Renewable Certificate Market Prices
Renewable Certificate Market Prices TPC is leveraging off higher prices For personal use only Renewable certificate cost volatility ▪ Delay in Renewable projects coming to fruition. ▪ Certificates are held and not released into the market. 28
Slide 31: Sensitivity of TPC's earnings
Sensitivity of TPC’s earnings Three key profitability components For personal use only Cost EBITBA relationship Cost EBITBA relationship Cost EBITBA relationship (Electricity) (Gas) (LGC) 6% 17% 6% 10% 10% 10% -10% -10% -10% -6% -15% -6% EBITBA impact Price variance EBITBA impact Price variance EBIT
Slide 32: Bad debts trend lower despite COVID-19 pandemic
Bad debts trend lower despite COVID-19 pandemic For personal use only FY 2021 FY 2020 Bad Debts Expenses $2,686,105 $3,212,104 Bad Debts Ratio 2.87% 3.72% Lower bad debts in FY21 reflects: ▪ Customer credit quality controls ▪ Higher active collection activity 30
Slide 33: Financials
For personal use only INVESTOR UPDATE FINANCIALS
Slide 34: TPC's Financials: Profit and loss
TPC’s Financials Profit and loss For personal use only Commentary FY 2021($m) FY 2020 ($m) Change (%) Revenue 93.6 86.3 8.4 Gross Profit 22.2 18.7 18.6 EBITDA 6.3 5.0 24.9 Profit before tax 5.3 4.0 32.4 Net Profit for the year 4.7 3.4 39.4 Key Ratios EBIT Margin (% sales) 5.7% 4.9% EPS (cents/share)
Slide 35: FY 2021 Revenue by Segment
TPC’s Financials FY 2021 Revenue by Segment For personal use only • Total Revenues $93.7m $1.0 m • Electricity: 72.6% of revenues $24.7 m • Gas: 26.4% of revenues • Telecommunication: 1.0% of $68.0 m revenues Electricity Gas Telecommunication 33
Slide 36: A robust balance sheet, with minimal gearing
TPC’s Financials A robust balance sheet, with minimal gearing For personal use only FY 2021 ($’000) FY 2020 ($’000) Cash and cash equivalents 7,026 1,855 Trade and other receivables 13,393 13,779 Bank deposits 3,197 1,222 Total Current Assets 28,423 18,883 Total Assets 31,790 22,289 Trade and other
Slide 37: Outlook
For personal use only INVESTOR UPDATE OUTLOOK
Slide 38: Growth strategy outlook
For personal use only Continue Increase Strengthen geographic market share sales verticals expansion A focus on 1M SME customers SME, Online and South Australia, market size is >$9bn Corporate sales executing Tasmania, ACT growth strategy Expansion to have both organic and M&A components M&A Invest
Slide 39: Why invest in TPC
Why invest in TPC Competitive advantages + decarbonisation process + growth strategy = Increased shareholder returns For personal use only TPC has a track record for reporting increased earnings thanks to: ▪ Steady growth in CovaU’s share of Australia’s retail energy market (electricity, gas and ren
Slide 40: Investor Contact
For personal use only I N V E S TO R C O N TA C T TPC CONSOLIDATED LIMITED Charles Huang, Chief Executive Officer Level 11, 201 Kent Street | Sydney, NSW, 2000 | Australia 1300 731 574 | info@tpc.com.au
Slide 41: Disclaimer
Disclaimer Company legal disclaimer For personal use only The material in this presentation is general background information about the risks, uncertainties and other factors, many of which are beyond the control activities of TPC Consolidated Limited and its subsidiaries, and is current at the of T
TPC Consolidated — Investor Presentation (November 2021) on 6ix