Energy One Limited · ASX:EOL
Energy One — FY2021 Earnings Presentation
35 slides from Energy One's earnings presentation, 2021
Slide 1: Full Year Results FY21
Energy One Limited (ASX:EOL) Full Year Results FY21 personal use only
Slide 2: Disclaimer
Disclaimer personal use only This document has been prepared by Energy One Limited (EOL) and comprises written materials and slides for a presentation concerning EOL. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell o
Slide 3: Contents
Contents personal use only About Energy One 4 Financial results 7 Operational review 17 Company outlook 24 Guidance for FY22 30 Appendices 32 3
Slide 4: Energy One
Energy One • Energy One Limited (ASX:EOL) is a leading independent global supplier of Energy Trading - a profitable and Risk Management (ETRM) software systems. SaaS & personal use only • Hybrid business model of recurring (SaaS) Services revenue (80%) and project T&M (20%) company • Solutions for t
Slide 5: Supplying large blue chip companies in essential industries
Supplying large Our customers are often large: blue chip • Utilities – such as power stations and personal use only vertically integrated retailers companies in • Infrastructure providers – such as gas pipelines, electricity transmission essential • Include new generation sources (such as wind indus
Slide 6: EOL's suite of software tools are used by customers to manage their exposure to risk and volatility
EOL’s suite of software tools are used by customers to manage their exposure to risk and volatility personal use only Our software is used to trade and manage both physical energy and derivative contracts either bilaterally (B2B) or on public exchanges. 6
Slide 7: Financial Results
Financial Results personal use only 7
Slide 8: Financial results summary
Financial results summary personal use only 30 June 20 30 June 21 Change Revenue $20,604,000 $27,902,000 35% EBITDA $5,320,000 $8,130,000 53% NPAT $1,647,000 $3,705,000 125% EPS diluted (cents) 7.30 14.30 96% Cash and equivalents $3,534,000 $5,422,000 54% Borrowings $644,000 $0 * Excludes one off ch
Slide 9: Another great result and the consecutive year of profit
Another great result and the personal use only 8 consecutive year of profit th Revenue was up 35% to $27.9M • This was driven in good part by having a full 12 months contribution from eZ-nergy • Leaving aside the contribution from eZ, organic revenue growth was 15% for the year EBITDA increased 53%
Slide 10: The results are evidence of the successful execution of our long-term strategy
The results are evidence of the successful execution of our long-term strategy personal use only Diversification Grow customer base Invest in new products Grow by acquisition • 5min settlement Cross-sell products Geographic expansion • Combine eZ and • Expand into new Acquire complementary Contigo p
Slide 11: This strategy has seen revenue grow at 45% & EBITDA at 48% p.a. over the last 5 years
This strategy has seen revenue grow at 45% & EBITDA at 48% p.a. over the last 5 years personal use only $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY2021 Revenue EBITDA 11
Slide 12: Revenue growth has been both organic and from acquisitions
Revenue growth has been both organic and from acquisitions $30,000,000 personal use only $25,000,000 $20,000,000 54% of revenue now derived from Europe $15,000,000 $10,000,000 $5,000,000 $- FY15 FY16 FY17 FY18 FY19 FY20 FY21 Australia Contigo eZ-nergy 12
Slide 13: NPAT for FY21 was strong
NPAT for FY21 was strong $4,000,000 personal use only $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1H 2H 13
Slide 14: 12 months contribution from eZ-nergy and improved margin helped improve NPAT
12months contribution from eZ-nergy and improved margin helped improve NPAT personal use only $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- T ue s ts s ts ion Tax T PA n n se os n se tc co s at PA 0 N e ve p e ye ec p e rtis 1 N 202
Slide 15: All of which translates into earnings per share and dividend growth
All of which translates into earnings per share and dividend growth $0.160 personal use only $0.140 $0.120 Directors have declared a dividend of 6 cents per share for FY21 $0.100 $0.080 $0.060 $0.040 $0.020 $- FY 2017 FY 2018 FY 2019 FY 2020 FY2021 EPS (diluted) Dividend per share 15
Slide 16: Strong cash flows from recurring business model
Strong cash flows from recurring business model personal use only Total receipts from customers increased 31% to $27.6M Operating cash flow increased 62% to $8.1M Recurring revenue of >80% across the group All bank debt has been repaid A strong balance sheet and good operational cash flows position
Slide 17: Operational review
personal use only Operational review 17
Slide 18: The Australian business continued to grow
The Australian business continued to grow • Revenue increased 13% over the year and EBITDA increased 18%. A pleasing result given the maturity of the market and our market share. personal use only • EBITDA margin increased from 30% to 31%. • Work on the 5 Minute Settlement (5MS) market is complete.
Slide 19: Expanding European opportunity
Expanding European opportunity personal use only At the end of FY20 44% of group revenue was generated in Europe this has increased to 54% at the end of FY21 Contigo delivered 17% organic revenue growth over the last year and improved EBITDA by 40%. Since acquisition the management team has steadily
Slide 20: An operational restructure to facilitate future growth
An operational restructure to facilitate future growth personal use only Having successfully integrated a number of acquisitions over recent years and with a substantial part of our business now in Europe we have restructured some business operations to reflect the changing business and facilitate f
Slide 21: Sticky customer base…
Sticky customer base… SaaS Metric FY 19 FY 20 FY 21 personal use only Average LTV per customer $1,449,506 $1,666,245 $2,470,876 LTV/CAC 11.7 14.8 28.9 Customer-installs 143 205 230 Typical contract length 1-5 year initial term, then annual renewals Churn 3.8% 4.1% 2.9% Gross margin 60% 59% 62% • Gro
Slide 22: The business has exceeded the "Rule of 40" for each of the last 5 years
The business has exceeded the “Rule of 40” for each of the last 5 years 120.0% personal use only 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% FY 2017 FY 2018 FY 2019 FY 2020 FY2021 Revenue growth rate EBITDA margin 22
Slide 23: Recurring revenue continues to grow strongly
Recurring revenue continues to grow strongly $30,000,000.00 personal use only $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $- FY16 FY17 FY18 FY19 FY20 FH21 Recurring revenue Project revenue 23
Slide 24: Company Outlook
personal use only Company Outlook 24
Slide 25: Rapidly changing energy markets are presenting new growth opportunities
Rapidly changing energy markets are presenting new growth opportunities personal use only • The energy market is fragmenting. In the future there will be fewer large generation units and more distributed energy resources. • For example rather than a single 2,500MW thermal coal generator there might
Slide 26: Dispatching distributed energy resources into electricity networks can be more difficult
Dispatching distributed energy resources into electricity networks can be personal use only more difficult • The growing share of green distributed power generation increases the complexity in both the European and Australian energy markets • Given the smaller size of Distributed Energy Resources it
Slide 27: Energy One will launch a new product offering to address this rapidly growing market
Energy One will launch a new product offering to address this personal use only rapidly growing market by selling software with a service • We intend expanding the types of services currently provided by eZ-nergy. • Aspiring to a global 24/7 operations function to complement our software • Our autom
Slide 28: The strategy to diversify revenue by product and geography has been successful
The strategy to diversify revenue by product and geography has been successful personal use only In FY22 we will continue this diversification with additional revenue from new services In 2013 EOT was our biggest product representing 90% of total revenue or ~$1.5M In 2021 EOT is still a significant
Slide 29: In FY22 we will continue to execute on our long-term strategy
In FY22 we will continue to execute on our long-term strategy personal use only Diversification Grow customer base Invest in new products Grow by acquisition • Expand services offering Geographic expansion • Continue to offer • Continue Acquire complementary combined products expansion into new prod
Slide 30: Guidance for FY22
personal use only Guidance for FY22 • Focus will be on consolidating a strong FY21 and leveraging our technologies and eZ capability in the dispatch services space. • We will invest in additional managerial resources in Europe to facilitate additional growth. • Group revenue consists of 80% recurrin
Slide 31: Mr Shaun Ankers - CEO and Managing Director
personal use only Mr Shaun Ankers - CEO and Managing Director Email: enquiries@energyone.com Level 13, 77 Pacific Highway North Sydney NSW 2060 +61 2 8916 2200 31
Slide 32: Appendix
Appendix Additional information personal use only 32
Slide 33: Many energy market participants use EOL software
Many energy market participants use EOL software personal use only Electricity Exchange Traded Generators: Derivatives Energy - Solar farms Consumers Traded energy - Wind farms Spot Market (Domestic) - Hydro for Electricity Energy - Batteries Retailers/ - Coal fired - Gas fired OTC Contracts, PPA’s
Slide 34: A comprehensive suite of software
personal use only A comprehensive suite of software Physical Bidding ETRM Business Process Allows a power station to bid it’s Contract management for Automation electricity (quantity, price, time recording physical trades (PPA’s) and financial derivatives (Swaps, Many systems and contracts in and pl
Slide 35: EOL software makes life easier
EOL software makes life easier Participant Challenges faced EOL group products Generators Accurate, compliant energy spot market bidding ü personal use only Efficiently dispatching generation during constrained network events ü Energy operations (B2B, bid preparation, monitoring, compliance) ü Hedgi