Energy Action Limited · ASX:EAX
Energy Action — FY2016 Earnings Presentation
32 slides from Energy Action's earnings presentation, Aug 18, 2016
Slide 1: Financial Results Presentation for the year ended 30 June 2016
For personal use only Financial Results Presentation for the year ended 30 June 2016 Presented by Mr Scott Wooldridge Chief Executive Officer Energy Action Limited Mr Michael Fahey Chief Financial Officer Energy Action Limited 1
Slide 2: FY16 Results Agenda
FY16 Results Agenda For personal use only 1. Results Highlights – Scott Wooldridge 2. Group Financials – Michael Fahey 3. Operational Performance – Scott Wooldridge 4. FY17 Priorities – Scott Wooldridge 2
Slide 3: Results Highlights
For personal use only Results Highlights Scott Wooldridge Chief Executive Officer 3
Slide 4: FY16 Results Highlights
FY16 Results Highlights Solid operating result, improved operational performance For personal use only • Revenue up 6% to $33.98m – Growth driven by PAS +18% and CMER +8% • Operating NPAT up 47% to $3.52m – Revenue growth, strong cost management • Improved operational performance – PAS utilisation i
Slide 5: Roll out of new strategy
Roll out of new strategy Growth from the core and adjacent categories For personal use only Extending Core Capitalise on Macro Solutions Reach Industry Trends Client Segmentation & tailored offerings Microgrids Revamping Contract Management Offers NABERS Enhanced Product Management Big Data Accelera
Slide 6: Delivering on our Strategy
Delivering on our Strategy Driving profit growth in competitive & uncertain markets For personal use only FY16 Achievements FY17 Priorities • Launched Metrics Platinum • Improved customer Expanding customer • Brand migration segmentation • Launched Expert Monitoring • Tailored products reach & Diagn
Slide 7: Microgrids - Tenant Metering, Monitoring and Billing
Microgrids ‐ Tenant Metering, Monitoring and Billing Multi‐year contract to manage multiple properties For personal use only • Charter Hall Shopping Centre Portfolio (17 centres) • System Design • Electricity Procurement • Reporting and Compliancy • Managing tenant metering and billing • Solar Feasi
Slide 8: Expert Monitoring and Diagnostics Solution
Expert Monitoring and Diagnostics Solution First client – Nishi Building Canberra For personal use only • Commercial building software and services energy monitoring and diagnostics solution • Provides continuous NABERS benchmarking and building fault diagnostics • Jointly developed with external so
Slide 9: Big Data – Structured Procurement Solutions
Big Data – Structured Procurement Solutions Solid growth from a small base For personal use only • Access to wholesale market data and improved daily and near real‐time data access offers alternate high value Procurement Service Offers • Structured Products allows clients to procure Energy in shorte
Slide 10: Business Customers Energy market update
Business Customers Energy market update Significant increases in FY16 For personal use only Energy prices increased in all states during FY16. South Australia was particularly volatile following the closure of the last coal fired plant and weak interconnection to Victoria • Price volatility has resu
Slide 11: Group Financial Results
For personal use only Group Financial Results Michael Fahey Chief Financial Officer 11
Slide 12: Key Financial Metrics
Key Financial Metrics Solid operating results and cash flow in a competitive market For personal use only Positives • Revenue of $33.9 million up 6% driven by PAS (+18%) and CMER (+8%) • Operating NPAT of $3.519 million up 47% • CMER revenue up 8% with 407 additional sites commencing service deliver
Slide 13: Statutory to Operating Profit reconciliation
Statutory to Operating Profit reconciliation Share based payments now included in Operating Profit For personal use only $ Operating profit after tax EBITDA 30 June 30 June 30 June 30 June 2016 2015 % var 2016 2015 % var Statutory results after tax (449,399) (2,147,578) 79.1% 2,524,681 99,821 2,429.
Slide 14: Operating NPAT at $3.519 million up 47%
Operating NPAT at $3.519 million up 47% Higher revenues, solid cost management drive profits For personal use only vs vs $ FY16 Actual FY15 Actual FY15 $ FY15 % Revenue 33,978,708 32,049,215 1,929,493 6% COGS 6,172,886 5,413,726 759,160 14% COGS increase due to product mix Gross Margin 27,805,822 26
Slide 15: FY16 Operating Profit drivers
FY16 Operating Profit drivers Revenue and COGS increases driven predominantly by CMER and PAS margins For personal use only • Revenue growth driven by CMER and PAS • Lower Opex spend due to strong cost control and non‐repeat of FY15 bad debts 15
Slide 16: Revenue up 6% versus prior period
Revenue up 6% versus prior period Revenue growth driven by PAS and CMER For personal use only FY16 FY15 vs FY15$ vs FY15 % Total Procurement 7,586,787 8,263,626 ‐676,839 ‐8.2% Total Contract Mgmt & Energy Reporting 18,059,913 16,691,706 1,368,207 8.2% Projects & Advisory Services 7,930,792 6,698,594
Slide 17: EBITDA to Operating cash conversion rate of 102%
EBITDA to Operating cash1 conversion rate of 102% Cash conversion underpins the quality of the result For personal use only Strong cash conversion with continued focus on receivables management 1. Operating Cash Flow before Interest, Tax and Significant Items 17
Slide 18: Operating costs of $23m - savings of $0.4 million vs FY15
Operating costs of $23m ‐ savings of $0.4 million vs FY15 Synergy benefits being realised For personal use only +162 ‐821 ‐229 • Employment costs largely flat with FY15 • Savings realised in general and administrative expenses following office rationalisation and improved purchasing • Synergy benefi
Slide 19: Debt structure and key financial ratios
Debt structure and key financial ratios Solid cash flow resulted in increased facility headroom from $3m to $5.5m EAX has a 5 year, $12 million multi‐option facility agreement expiring September 2019 For personal use only • Can be utilised for borrowings, bank guarantees or letters of credit • Curre
Slide 20: Future Contracted Revenue
Future Contracted Revenue $66.7 million as at June 2016 vs $75.8 million as at June 2015 For personal use only Future Contracted Revenue Future Contracted Revenue realisation year • EAX has experienced a decline in forward revenues as clients have moved to align energy supply contracts and CMER cont
Slide 21: Future Contracted Revenue
Future Contracted Revenue Roll off profile and impact of cancelled contracts For personal use only • The contract value roll‐off profile is consistent from FY15 to FY16 for future years 1‐4 • $9.1million year on year reduction in future revenue • $5.2 million of the cancellations relates to post 202
Slide 22: Operational Performance
For personal use only Operational Performance 22
Slide 23: 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 23
Slide 24: Energy Procurement
Energy Procurement High level of December 2015 renewals resulted in a slower 2nd half For personal use only FY16 FY15 Variance • Energy Action provides a complete No of Auctions1 1,550 1,882 ‐18% range of procurement options Average contract duration 22.6mth 24.4mth ‐1.8mths across four distinct mar
Slide 25: Contract Management & Energy Reporting
Contract Management & Energy Reporting For personal use only • Energy Action offers Contract Management services under three bundled service and software offers. Key Customer deliverables are: • Monthly Bill Verification • Annual Tariff Reviews • Daily, Weekly, Monthly and Annual energy and environm
Slide 26: Projects & Advisory Services
Projects & Advisory Services Revenue growth driven by Projects – up 43% For personal use only • Project growth driven by business services upgrades, Solar and Power Factor Correction (PFC) work • Improved utilisation and profitability in PAS • PAS provides core expertise for new revenue streams such
Slide 27: FY17 Priorities
For personal use only 27 FY17 Priorities
Slide 28: FY17 Key Priorities
FY17 Key Priorities Positioning Energy Action to capitalise on these opportunities For personal use only • Base business stabilised – now looking for growth • Contract monitoring customer numbers increased • Costs well managed • Extend the core solution • Better targeting and customer segmentation •
Slide 29: Contact Information
Contact Information For personal use only Scott Wooldridge Twitter: @EnergyActionAUS Chief Executive Officer 02 9633 6471 scott.wooldridge@energyaction.com.au LinkedIn: www.linkedin.com/company/energy‐action Email: info@energyaction.com.au Michael Fahey Chief Financial Officer 02 9633 6405 Web: www.
Slide 30: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Energy Action Limited ABN: 90 137 363 636. 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
Slide 31: Appendix
For personal use only 31 Appendix
Slide 32: Balance Sheet
Balance Sheet Balance Sheet As At ‐ June 2016 30/06/2016 30/06/2015 Variance % Variance ASSETS For personal use only CURRENT ASSETS Ca s h a nd ca s h equi va l ents 1,207,046 1,740,288 (533,242) ‐31% Ca s h hel d i n es crow ‐ 1,000,000 (1,000,000) ‐100% Tra de a nd other recei va bl es 4,969,770 5