Slide 1: 2017 Investor Presentation ASX Release
ASX Release For immediate release For personal use only 22 August 2017 2017 Investor Presentation The Energy Action Limited (ASX: EAX) (“Energy Action”) Investor Presentation for the year ended 30 June 2017 is attached. *ENDS Further information: Ivan Slavich Chief Executive Officer : 02 9633 6401 M
Slide 2: Financial Results Full Year FY17
For personal use only Financial Results Full Year FY17 Ivan Slavich Michael Fahey Chief Executive Officer Chief Operating Officer & Chief Financial Officer Energy Action Limited Energy Action Limited
Slide 3: Full Year FY17 Results Agenda
Full Year FY17 Results Agenda For personal use only Energy Action 1. Results Highlights Ivan Slavich 2. Group Financials Michael Fahey 3. Operational Performance Ivan Slavich 4. FY18 Priorities Ivan Slavich
Slide 4: FY17 Full Year Results Highlights
FY17 Full Year Results Highlights Revenue, Profit and Cash Flow improvements in second half For personal use only > Resumption of revenue growth in H2 17 – second half up 5% vs FY16 – Procurement revenue up 25% in H2 17 – PAS revenue up 35% in H2 17 – CMER declined 15% in H2 17 – Full year revenue d
Slide 5: Energy Action Price Index (EAPI)
Energy Action Price Index (EAPI) Significant energy price increases continue to impact clients For personal use only • Significant price increases have driven increased client interest in energy solutions • Relatively mild winter and government action on gas providing some short term price relief •
Slide 6: Group Financial Results
For personal use only Group Financial Results 5
Slide 7: Financial Highlights
Financial Highlights Improving performance in second half For personal use only Positives Challenges • Much improved second half • Decline in CMER revenues and sites performance in revenue, profits and under management cash flow – Loss of a large retail client as a result • Double digit growth in Pr
Slide 8: Operating NPAT of $2.5M
Operating NPAT OF $2.5M Results in line with guidance of $2.4 - $2.7 million For personal use only % $ FY17 FY16 Growth in Procurement offset by Variance lower CMER revenues Revenue 32,957,103 33,978,709 -3% COGS 5,931,570 6,172,886 4% Lower COGS on lower PAS revenue Gross Margin 27,025,533 27,805,8
Slide 9: Operating Profit drivers
Operating Profit drivers Reduction in CMER resulted in lower NPAT For personal use only Due to lower PAS COGS Procurement +$492K PAS -$142K Higher financing costs CMER -$1,277 following final Energy Advice payment 8
Slide 10: Procurement revenue resumes full year growth
Procurement revenue resumes full year growth Higher energy prices and increased auction volumes driving growth For personal use only $ % FY17 FY16 Variance Variance Procurement 8,079,595 7,586,787 492,808 6% Contract Mgmt & Energy Reporting 16,695,500 18,059,914 -1,364,414 -8% Projects & Advisory Se
Slide 11: Revenue growth resumed in second half
Revenue growth resumed in second half Strong growth in Procurement and PAS, offset by lower CMER For personal use only First Half Second Half $ % $ % FY17 1H FY16 1H FY17 2H FY16 2H Variance Variance Variance Variance Procurement 3,791,044 4,152,725 -361,681 -9% 4,288,550 3,434,062 854,488 25% Contr
Slide 12: Debt structure and key financial ratios
Debt structure and key financial ratios Available facilities of $4.8 million For personal use only EAX has a 5 year, $12 million multi-option facility agreement expiring September 2019 • Can be utilised for borrowings, bank guarantees or letters of credit • Current utilisation comprised of $9.2 mill
Slide 13: Operational Performance
For personal use only Operational Performance 12
Slide 14: Delivering on key priorities
Delivering on key priorities Improved performance & delivery in H2 17 For personal use only Status > Improve customer focus and continue to implement strategy – Launch customer app and improved website – Drive additional customer growth in Embedded networks, Structured Products and EMDS – Restru
Slide 15: Energy Action a trusted voice on Energy matters
Energy Action a trusted voice on Energy matters Higher profile driving an increase in in-bound inquiries For personal use only
Slide 16: Power price wave slams business
» Commercial customers face tripling costs Power price — f'INANCIAL REVIEW wave slams business be hit by a tripling in gas market after the unexpected shut- down of a major offshore platform in the Bass Strait just before a cold snap in the south-cast. ‘The shutdown has cut gas supply ‘oversupply wi
Slide 17: Energy Procurement
Energy Procurement Higher auction volumes and increase contract prices For personal use only • Energy Action provides a complete FY17 FY16 Variance range of procurement options across four distinct market No of Auctions1 1,306 1,550 -16% Average contract duration 20.3mth 22.6mth -2.3mths segments: T
Slide 18: Energy Procurement
Energy Procurement Stronger second half as client contracts renewed For personal use only • Turnaround in second half revenues with higher auction numbers, tariff sites and structured product assignments 17
Slide 19: Contract Management & Environmental Reporting
Contract Management & Environmental Reporting For personal use only > Innovative enhancements deployed in H2 – Market first mobile app; enhancements to the Platinum service including weather and forecast load alerts; and, automation of the WA service > Circa 14,300 sites are under management – Reduc
Slide 20: Contract Management & Environmental Reporting
Contract Management & Environmental Reporting Decline in H2 following the loss of a retail client For personal use only • A retail client with circa 570 sites in-sourced this service impacting H2 revenues Flat 19
Slide 21: Projects & Advisory Services
Projects & Advisory Services Project Highlights For personal use only > 747 Collins Street, Melbourne achieved 6 Star NABERS rating (using the EAX OptEEmise offering) and achieved several awards including: – Winner, Association of Energy Engineers (USA) Oceania Region Energy Project of the Year – Fi
Slide 22: Projects & Advisory Services
Projects & Advisory Services Project Highlights For personal use only > Commercial Building Upgrades – Practical completion of Mercure Hotel, Penrith in August 2016 – Work largely completed on delivering an energy upgrade project for a 16,000m2 office building in Melbourne CBD – 10 Moore St, Civic,
Slide 23: Projects & Advisory Services
Projects & Advisory Services Irregular nature of project work skews results. Consulting revenues grew 57% For personal use only Project work is irregular in nature, making year on year comparisons difficult • Results demonstrate the success of the decision to focus on higher margin and more consiste
Slide 24: Projects & Advisory Services
Projects & Advisory Services Focus on higher margin consulting services delivering growth For personal use only • Growth from consulting services and timing of project delivery services • Focus on consulting resulted in a faster sales cycle and improved consultant utilisation 23
Slide 25: FY18 Priorities
For personal use only FY18 Priorities 24
Slide 26: Energy Action Executive Team
Energy Action Executive Team For personal use only Ivan Slavich Chief Executive Officer David Rylah Michael Fahey General Manager – Energy Market Solutions Chief Operating Officer & CFO Stephen Flannigan Paul Bannister General Manager – Business Services Innovation & Sustainability Director Caoimhin
Slide 27: Unrivalled depth of services across both demand and supply sides
Unrivalled depth of services across both demand and supply sides Multiple options to deliver value to clients For personal use only
Slide 28: Our client value proposition
Our client value proposition We help clients understand and take control of their energy needs For personal use only • Procure the best energy deal for clients, in the current marketplace; • Manage client energy contracts, including account management, liaison with their retailer, validating their b
Slide 29: Our top priorities for FY18
Our top priorities for FY18 Focus on improving customer service and sales & marketing effectiveness For personal use only EAX Strengths Key Priorities • Procurement market expertise • Gain market penetration via covering all market segments from improved sales & marketing SME’s to the largest energy
Slide 30: Connect with us
For personal use only Connect with us Twitter: @EnergyActionAUS LinkedIn: www.linkedin.com/company/energy-action Email: info@energyaction.com.au Web: www.energyaction.com.au Ivan Slavich Chief Executive Officer National number: 1300 553 551 02 9633 6476 Ivan.slavich@energyaction.com.au Michael Fahey
Slide 31: 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
Slide 32: Appendix
For personal use only Appendix 31
Slide 33: Balance Sheet
Balance Sheet BALANCE SHEET AS AT - June 2017 30/06/2017 30/06/2016 Current Assets For personal use only Cash and cash equivalents 2,105,779 1,207,045 Debtors 5,992,413 4,905,396 Other Assets 2,770,999 2,400,241 Total Current Assets 10,869,191 8,512,682 Non Current Assets Trade and Other Receivables
Slide 34: Cash Flow
Cash Flow Operating Cash Flow FY17 For personal use only Operating EBITDA 5,631,858 Trade debtors -1,028,492 Other debtors -434,196 Trade creditors -228,646 Other creditors -135,768 Share based payments -203,173 Other WC mvmts 0 Operating Cash Flow before Interest & Tax 3,601,584 Net financing costs
Slide 35: Statutory to Operating Profit reconciliation
Statutory to Operating Profit reconciliation For personal use only Operating profit after tax EBITDA $ FY17 FY16 Variance FY17 FY16 Variance Statutory results after tax / Operating EBITDA 1,772,970 (449,399) 495% 4,731,322 2,524,681 87% Add back Significant Items after tax : Deferred consideration o