ENERGY ACTION LIMITED — AGM Information 2015

Nov 11, 2015

2015 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. FY15 Operational Performance and Financial Results

6. FY16 Operational Priorities and Outlook

7. Formal Business

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Chairman’s Address Dr Ronald Watts Chairman

CEO’s Address

Mr Scott Wooldridge Chief Executive Officer

Business Overview

Energy Action

Unique energy management capabilities spanning Supply and Demand side solutions for procurement , contract management, projects and advisory services

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Our Mission

“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

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

Trusted Partner

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

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FY15 Operational Performance and Financial Results

FY15 Key Operational Achievements

• Acquired EnergyAdvice and integrated the management, operations and sales teams

• Launched the Australian Energy Exchange for the Western Australian market

• Launched the Client Portal to enhance the core Activ8 Gold service and provide the infrastructure for future service offers.

• Designed, commissioned and certified the first two 6 star base build NABERS rated buildings

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FY15 Financial Performance Challenges

A number of operational challenges in FY15 impacted Operating Profit Significantly

• Acquisition integration taking longer than anticipated Action: Focus on systems integration & realising restructuring benefits

• Adverse margin mix due to lower high margin Contract Management sales and higher PAS sales which are at lower margins

Action: Commission structure amended to reward higher margin sales & pro‐active measures to improve customer retention

• Historical receivables write‐offs of $550K

Action: Settlement agreed with metering company, systems changes being implemented

FY15 Financial Performance

Key Financial Metrics	FY15	FY14
Revenue	$32.1m	$25.8m
Operating NPAT	$2.7m	$4.5m
Statutory NPAT	$(2.1)m	$3.5m
Operating Cash Flow	$5.9m	$6.0m
Future contracted revenue	$75.8m	$74.5m
Earnings per share (operating)	10.37c	17.29c
Dividend per share	3.65c	7.35c

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FY16 Operational Priorities and Outlook

FY16 Key Operational Priorities

• Complete the integration of EnergyAdvice and Exergy with the migration to a single product suite and a single Energy Action brand

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• Q3 launch of Activ8 Platinum, providing access to real time data analytics for Energy Consumption and Costs, leveraging the Client Portal infrastructure

• Targeted upgrades to core IT platforms for improved automation of service delivery and integrate Finance and CRM systems

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Market Conditions

• Mid tier market demand for Auction based procurement continues to grow with the number of successful Auctions in FY2015 increasing from 1400 to 1800

• Procurement Service solutions utilised by the top 400 Australian Energy Users are highly competitive reducing prices achieved for services

• Growing market demand for Supply and Demand side software management solutions, supported by expert consulting services

• Energy Retailers and Consultants are rapidly trying to diversify to offer value added services. Solar projects and Solar PPA for Commercial and Industrial clients are gaining momentum

• Energy Prices are trending up which is traditionally favourable for service providers, Energy Retail Contract lengths are steady at 24 months

Rising Energy Pricing

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FY16 Earnings Outlook

• Assuming normal trading conditions for the remainder of the trading year, Full year Operating NPAT[1] is expected to be between $3.4m and $3.9m

• Operating NPAT as per historical performance (excluding FY15) is expected to be weighted to H2 FY16 than H1 FY16

• Revenue from the three core lines of business Procurement, Contract Management & Energy Reporting and Projects & Advisory Services are each above the prior October FY15 result however margins are lower than the prior period

• The business restructure undertaken in Q4 FY15 is delivering the cost savings outcomes as projected

• Operating NPAT = Statutory NPAT adjusted for Significant Items

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Further information

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

Michael Fahey Chief Financial Officer 02 9633 6405 michael.fahey@energyaction.com.au

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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.

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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 2015.

• .

• No questions for Ernst & Young were received

• Representatives from our audit review partner, Ernst & Young are in attendance and will answer any questions relating to the conduct of the 30 June 2015 audit, the preparation of the financial statements, and the independence of the auditor.

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General Business

Formal Resolutions:

• Resolutions 1, 2, 3, 4 and 5 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.

• Voting on resolutions 2, 3, 4 and 5 will take place on a show of hands, with resolution 1 to be decided on a poll, which I now declare open.

• 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.

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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 2015.”

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.

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Resolution 1 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	5,876,095	48,204	29,001	17,977
% of Total Directed Proxies 98.70% 0.81% 0.49%

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Resolution 2

“That Mr Paul Meehan, who retires by rotation and being eligible offers himself 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.

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Resolution 2 ‐ Proxies

	For	Against	Open	Abstain
No. of Shares	12,388,968	19,602	30,801	7,923
% of Total Directed Proxies 99.59% 0.16% 0.25%

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Resolution 3

“That Mr Murray Bleach, 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.

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Resolution 3 ‐ Proxies	Resolution 3 ‐ Proxies	Resolution 3 ‐ Proxies	Resolution 3 ‐ Proxies	Resolution 3 ‐ Proxies
	For	Against	Open	Abstain
No. of Shares	12,388,968	19,602	30,801	7,923
% of Total Directed Proxies 99.59% 0.16% 0.25%

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Resolution 4

“That Mr Nitin Singhi, who having been appointed as a Director of the Company by the Board on 12 August 2015 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.

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Resolution 4 ‐ Proxies	Resolution 4 ‐ Proxies	Resolution 4 ‐ Proxies	Resolution 4 ‐ Proxies	Resolution 4 ‐ Proxies
	For	Against	Open	Abstain
No. of Shares	12,399,968	8,602	30,801	7,923
% of Total Directed Proxies 99,68% 0.07% 0.25%

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Resolution 5

“That Mr Mark de Kock, who having been appointed as a Director of the Company by the Board on 17 August 2015 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 5 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

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Resolution 5 ‐ Proxies	Resolution 5 ‐ Proxies	Resolution 5 ‐ Proxies	Resolution 5 ‐ Proxies	Resolution 5 ‐ Proxies
	For	Against	Open	Abstain
No. of Shares	12,397,195	8,602	33,574	7,923
% of Total Directed Proxies 99.66% 0.07% 0.27%

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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.

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Connect with us

Twitter: @EnergyActionAUS

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

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