ENERGY ACTION LIMITED — AGM Information 2014

Nov 4, 2014

2014 Annual General Meeting

Welcome & Introductions

Dr Ronald Watts Chairman

Agenda

1. Introduction of Board Members & Welcome

2. Chairman’s Address

3. CEO’s Address

4. Business Overview

5. Financial Results

6. Operational Priorities

7. FY15 Outlook

8. Formal Business

3

Chairman’s Address Dr Ronald Watts Chairman

CEO’s Address

Mr Scott Wooldridge Chief Executive Officer

Business Overview

Energy Action

Growing energy management capabilities across procurement , monitoring and sustainability

7

Our Cause

“As the energy market experts, we are committed to bringing innovation to energy management, enabling our people to deliver positive environmental and financial outcomes for our clients through the best relationship and ” management, analytics data integrity

8

Energy Action Delivers Business Outcomes across the Energy Supply and Demand Lifecycle

9

Industry trend towards using specialist service providers

Source: UMI Customer Research in Utility Markets, Wave 18, December 2013:

10

Diversifying range of services being requested

Source: UMI Customer Research in Utility Markets, Wave 18, December 2013:

11

Our Strategy: Create a Unique Market Position One Off Engagement Actionable Customer Insight

Trusted Partner

12

Financial Results

Financial Performance

Key Financial Metrics	FY14	FY13
Revenue	$25.8m	$22.2m
Operating NPAT	$4.5m	$4.9m
Statutory NPAT	$3.5m	$4.4m
Future contracted revenue ($m)	$74.5m	$78.1m
Earnings per share (statutory)	13.60c	16.98c
Dividend per share	7.35c	8.65c

14

Consistent Revenue Growth

==> picture [211 x 13] intentionally omitted <==

----- Start of picture text -----

Revenue and Operating NPAT Margin
----- End of picture text -----

EBITDA Margin

==> picture [665 x 253] intentionally omitted <==

----- Start of picture text -----

23% 23%
22%
35.2%
21%
33.7%
20%
32.3%
30.2% 30.7%
17%
24.3%
25.8 25.8
22.2 22.2
17.4 17.4
14.0 14.0
10.3 10.3
7.8 7.8
FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14
Revenue $m Operating NPAT ‐ % of Revenue Revenue $m EBITDA Margin (RHS)
----- End of picture text -----

• Operating NPAT and EBITDA margins impacted in FY2014 due to sustained investments in sales acquisition roles and Projects & Advisory Services personnel that have been slower to realise targeted revenue growth ambitions

15

Operational Priorities

FY2014 Key Operational Achievements

• Developed and started the instigation of a 5 year strategic growth plan, branded Ignite

• Acquired Exergy and integrated Ward Consulting, Energy Action's Sustainability Solutions team and Exergy into a single division, Projects & Advisory Services

• Finalised restructure of sales team into 3 key segmented streams:

• Corporate Sales

• Account Acquisitions

• Account Retentions

• Launched completely re‐written Australian Energy Exchange facilitating significantly higher volumes of daily auctions

• Rebranded Energy Action

17

FY2015 Key Operational Priorities

1. Key operational focus on realising the benefits related to recent acquisitions via quickly integrating Exergy and EnergyAdvice

2. Key sales focus on growth in market share growth of procurement customers based on capitalising on the renewal cliff for current procurement contracts

3. Accelerated investment in core IT infrastructure to deliver on differentiation strategy with major enhancements planned for the Australian Energy Exchange (AEX) and the November launch of a new Portal Solution

18

FY15 Outlook

Energy Procurement

Renewal cliff opportunity

• Due to the uncertainty as a result of carbon tax customers did not renew beyond 2015.

• EAX has 5,236 sites due for renewal between June 2014 and December 2014 and 7,133 sites between June 2015 and December 2015[1]

• 77% of sites under management are due for renewal between June 2014 and December 2015.

‐ Future = supply points that have not yet commenced their retail energy contract but are due to end at a future date

• Active = 14,436, Future 984

• Note includes SME but not gas

• 1 Excludes Energy Advice Clients

20

Trading Update

• Traditional Business Lines of Procurement (AEX) and Contract Management & Energy Reporting (Activ8) for both contract sales and revenue are performing in line with budget expectations with contract sales significantly above H1 FY14

• Projects & Advisory Services (PAS) has started the year behind budget for both revenue and profit, key impacts being

• Mix of work in hand not aligned to resource pool available

• Projects & Advisory staff migrated to new management structure and a single Project Management system in Q1 impacting utilisation

• Operating NPAT as per previous years is expected to be weighted 40/60 between H1 and H2 FY15. This reflects the:

• Procurement Renewal Cliff Opportunity weighted towards Q4 FY15

• Budgeted increase in Projects & Advisory Services contribution in H2

• H2 FY15 ‐ full realization of EnergyAdvice contribution

• Q1 FY15 NPAT was under budget based on the Projects & Advisory Services performance however is projected to be in line with consensus projections for FY15

21

Further information

Scott Wooldridge Chief Executive Officer 02 9633 6471 scott.wooldridge@energyaction.com.au

22

Formal Business

Dr Ronald Watts Chairman

Procedural Matters

• If there are any Shareholders who are eligible to vote who have not received their yellow voting card, please see a representative from Link Market Services at the registration desk.

• Shareholders holding a red card are not eligible to vote but can speak at the meeting.

• Visitors holding a blue card are not eligible to vote or speak at the meeting.

• Copies of the Notice of Meeting and Annual Report are available from the front desk.

24

General Business

• First Item of business: Consideration of the annual report, financial report, Directors report and Auditors report for the financial year ended 30 June 2014.

• No questions for Ernst & Young were received. (tbc)

• Representatives from our audit review partner, Ernst & Young are in attendance and will answer any questions relating to the conduct of the 30 June 2014 audit, the preparation of the financial statements, and the independence of the auditor.

25

General Business

Formal Resolutions:

• Resolutions 1, 2, 3 and 4 are proposed as ordinary resolutions and will be approved if passed by more than 50% of votes cast by members entitled to vote on the resolution.

• Resolution 5 and 6 are proposed as special resolutions and will be approved if passed by at least 75% of votes cast by members entitled to vote on the resolution.

• Voting on resolutions 2, 3 and 4 will take place on a show of hands, with resolutions 1, 5 and 6 to be decided on a poll.

• Your Directors support the resolutions being put to Shareholders, except for situations where they have an interest in that resolution, in which case, they individually make no recommendation. Where permitted to do so, the Chairman of the Meeting will vote all open proxies ‘for’ each item of business.

26

Resolutions

Resolution 1

“That for the purposes of Section 250R(2) of the Corporations Act 2001, and for all other purposes, approval is given for the adoption of the Remuneration Report for the year ended 30 June 2014.”

Resolution 1 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast by members entitled to vote on the resolution.

28

Resolution 1 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	6,833,683	27,100	28,810	2,865
% of Total Directed Proxies 99.19% 0.39% 0.42%

29

Resolution 2

“That Ms Valerie Duncan, who retires by rotation and being eligible offers herself for re‐election, be re‐elected as a Director of the Company.”

Resolution 2 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast by members entitled to vote on the resolution.

30

Resolution 2 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	14,701,348	357,507	28,810	752,000
% of Total Directed Proxies 97.44% 2.37% 0.19%

31

Resolution 3

“That Mr Steve Twaddell, who retires by rotation and being eligible offers himself for re‐election, be re‐elected as a Director of the Company.”

Resolution 3 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast by members entitled to vote on the resolution.

32

Resolution 3 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	15,792,155	16,700	28,810	2,000
% of Total Directed Proxies 99.71% 0.11% 0.18%

33

Resolution 4

“That Mr Philip Randall, who having been appointed as a Director of the Company by the Board on 18 August 2014 in accordance with clause 45.1 of the Company’s constitution and who will hold office until the end of this meeting, be elected as a Director of the Company.”

Resolution 4 is an ordinary resolution, and will be approved if passed by more than 50% of the votes cast by members entitled to vote on the resolution.

34

Resolution 4 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	15,805,855	3,000	28,810	2,000
% of Total Directed Proxies 99.80% 0.02% 0.18%

35

Resolution 5

“That pursuant to and in accordance with Listing Rule 7.1A of the ASX Listing Rules and for all other purposes, the Shareholders of the Company approve and authorise the Company to issue by way of placement(s), up to 10% of the issued capital of the Company (Additional Placement Capacity):

a) calculated:

(i) at the time of the issue; and (ii) in accordance with the formula prescribed in Listing Rule 7.1A.2; and

b) on the terms and conditions in the Explanatory Memorandum accompanying the Notice of Meeting.”

Resolution 5 is a special resolution, and will be approved if passed by at least 75% of the votes cast by members entitled to vote on the resolution.

36

Resolution 5 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	12,593,658	3,216,197	28,810	1,000
% of Total Directed Proxies 79.51% 20.31% 0.18%

37

Resolution 6

“ That, for the purposes of sections 260A and 260B(2) of the Corporations Act 2001 (Cth) and for all other purposes, approval is given for:

Exergy Holdings Pty Limited (ACN 163 748 507);

Exergy Australia Pty Limited (ACN 098 336 979); and

EnergyAdvice Pty Ltd (ACN 094 657 539), (together the Acquired Companies ),

each a wholly owned subsidiary of the Company to provide financial assistance to the Company in connection with the acquisition by the Company of all of the shares in the Acquired Companies, as further described in the Explanatory Memorandum.”

Resolution 6 is a special resolution, and will be approved if passed by more than 75% of the votes cast by members entitled to vote on the resolution.

38

Resolution 6 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	15,725,155	82,500	28,810	3,200
% of Total Directed Proxies 99.30% 0.52% 0.18%

39

Disclaimer

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 which such an offer or solicitation is not authorised or to whom it is unlawful to make such solicitation or offer.

Any investment decision with respect to any transaction involving Energy Action Limited should be made based Solely upon any offering documents, if applicable, and appropriate due diligence by the prospective investor.

We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources.

Past performance is not a reliable indicator of future performance. This presentation may include forward‐looking statements that represent opinions, estimates and projections, which may not be realised. Forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of Energy Action Limited. Actual results may vary from any forecasts and any variation may be materially positive or negative. This presentation includes forward‐looking statements that represent opinions, estimates and projections, which may not be realised. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources.

All information contained herein is current as at 5[th] November 2014 unless otherwise stated.

40

Connect with us

Twitter: @EnergyActionAUS

==> picture [85 x 158] intentionally omitted <==

LinkedIn: www.linkedin.com/company/energy‐action Email: info@energyaction.com.au Web: www.energyaction.com.au National number: 1300 553 551

==> picture [44 x 43] intentionally omitted <==

==> picture [721 x 136] intentionally omitted <==