ENERGY ACTION LIMITED — AGM Information 2018

Nov 20, 2018

Tower 3 Collins Square , 747 Collins Street, Melbourne VIC

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2018 ANNUAL GENERAL MEETING 21/11/2018

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Tower 3 Collins Square , 747 Collins Street, Melbourne VIC
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AGENDA

1. CHAIRMAN’S ADDRESS

• Introduction of Board Members and Welcome Address

• Strategic Review

2. CHIEF EXECUTIVE OFFICER’S ADDRESS

• Business Overview

  • FY18 Financial Results & Highlights

• FY19 Operational Achievements (YTD) & Priorities

3. FORMAL BUSINESS

4. RESOLUTIONS

3

STRATEGIC REVIEW UPDATE

• In August, Board announced appointment of PwC to assist with the review of strategic options available to maximise value for shareholders:

• Sale

• Joint venture

• Merger

• Continue with organic growth strategy

• Commenced due to the opportunities presented by the energy market alongside our uniquely scalable business model, extensive client base and future growth prospects

• Discussions are progressing with numerous parties

• There continues to be no guarantee that a transaction will eventuate

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CHIEF EXECUTIVE OFFICER’S ADDRESS

MR IVAN SLAVICH, CHIEF EXECUTIVE OFFICER

Quintessential Equity - 44 Sydney Ave, Forrest ACT

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Tower 3 Collins Square , 747 Collins Street, Melbourne VIC

OUR CLIENT VALUE PROPOSITION WE HELP CLIENTS UNDERSTAND AND TAKE CONTROL OF THEIR ENERGY NEEDS.

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ENERGY OPTIMISATION LIFECYCLE

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INTEGRATED ENERGY PLAN – WHAT IS IT?

• Benchmarking to industry standards

• Gap analysis

• Energy Analytics

• Contract Management • Procurement Strategy • Regular Performance Reviews • Measure and Monitor

• Confirm vision and strategy

• Rationale for investing in energy strategy

• (eg. Corporate Social Responsibility)

• Reduce energy costs

• Business Case for Investment (ROI)

• Upgrade Facility

• Design New Facilities

• Generate Onsite

• Renew Energy Contracts

• Embedded Network

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INTEGRATED ENERGY PLANNING – HOW WE ACHIEVE RESULTS

We can save up to 60% of our clients energy supply costs

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30% 20%
10%
Reduction Reduction
Reduction
Energy Efficiency Projects & Onsite Generation
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Energy Procurement & Contract Management

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ENERGY ACTION PRICE INDEX

22 AUG 2006 – 12 NOV 2018

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Electricity prices are dependent upon various factors outside of the control of Energy Action, including but not limited to, charges and taxes imposed by the government on energy retailers, energy distributors or other energy industry participants, including in connection with any carbon price or emissions trading scheme introduced in Australia (the Taxes and Charges). Electricity prices quoted or supplied to you by Energy Action are dependent on the Taxes and Charges in effect at the time those prices are quoted or supplied. Taxes and Charges, and therefore electricity prices, are subject to change. Energy Action is not able to, and does not represent or warrant to you that it is able to predict: (a) the amount of Taxes and Charges that will apply in the future, (b) the introduction of new Taxes and Charges; or

(c) any changes in electricity prices that are consequential to (a) or (b).

Where Energy Action provides information on historical market data, Energy Action will provide details of the source of this data on request. Energy Action (Australia) Pty Ltd holds an Australian Financial Services Licence (AFSL No. 362843). In providing information and advice to you, we rely on the accuracy of information provided by you or your company. To the full extent permitted by law, Energy Action, its related companies, employees, agents and independent contractors are not liable for any loss, expense or cost (Liability) that you incur as a result of or in connection with information or services provided to you by Energy Action including where such Liability is connected to a change in, or to the introduction of new, Taxes and Charges

Tower 3 Collins Square , 747 Collins Street, Melbourne VIC

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FY18 FINANCIAL RESULTS & HIGHLIGHTS

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FY18 FINANCIAL PERFORMANCE

Key Financial Metrics	FY2018	FY2017
Revenue	$31.17m	$32.96m
Statutory NPAT	$2.59m	$1.77m
Operating NPAT	$2.59m	$2.52m
Operating Cash Flow before interest, tax and significant items	$3.64m	$3.58m
Earnings per share (Statutory)	9.97c	6.83c
Earnings per share (Operating)	9.97c	9.71c
Dividend per share	4.00c	1.40c

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FY18 FULL YEAR RESULTS FINANCIAL HIGHLIGHTS

STRONG GROWTH IN PROFITS, CASH FLOWS AND DIVIDENDS

Statutory profit of $2.59 million Operating profit of $2.59 million

Up 46% vs FY17 Up 3% vs FY17

Operating EBITDA margin grew to 18.3% Operating cash flow up 92% to $6.9 million Operating Costs reduced by 2% Net debt reduced by $3.1 million Fully franked dividend of 4.0 cps

Up 1.2 percentage points Driven by higher EBITDA and improved cash collections Operational efficiencies being realised Borrowing capacity expanded to $7.7million Up 186% vs 1.40 cps in FY17

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FY18 FINANCIAL PERFORMANCE

PROCUREMENT

Facilitated a 15 year Corporate PPA deal between UNSW, Maoneng’s Sunraysia solar farm and Origin Energy

Strong growth in Auction value

Solid auction volumes, longer contract duration and higher $/MWh pricing

Doubled the number of structured products clients

CMER

Decline in Metrics sites under management slowed in second half

Embedded Network tenancies under management grew from 750 to 1,378

Metrics Insight launched June 2018

PAS

Grew OptEEmise energy efficiency product for commercial buildings from 8 to 15 sites

Commissioned to develop an Energy Plan for a major infrastructure project

CORPORATE

30% increase in the number of females in leadership positions

New clients in FY18 include Brickworks, Mulpha and Growthpoint

Establishment of BPO to reduce cost

FY19 OPERATIONAL ACHIEVEMENTS (YTD) & PRIORITIES

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Quintessential Equity - 44 Sydney Ave, Forrest ACT

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FY19 YTD OPERATIONAL ACHIEVEMENTS

YTD ACHIEVEMENTS

• Project to provide billing services to a retailer for a large client with multiple sites

• Currently working to secure the final stage – circa $2m over 3 years

• Profitable, high-value engagement for Energy Bureau services

• Initial delivery for approximately 1300 clients – February 2019

• Completed energy planning report for major new Australian infrastructure project

• Strategic Review continues

• Office consolidation

• Reduce overheads

• Improved facilities in remaining offices to accommodate staff growth

• Facilitate better team engagement by co-locating teams

• Cultural Transformation Program commenced

• Program designed to improve the culture, employee engagement and staff retention

• Business Transformation Program ongoing

• Initiative to improve core systems, processes and data ensuring we stay at the market forefront

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PRIORITIES FOR FY19

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GETTING IN TOUCH

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IVAN SLAVICH CONTACT US
Chief Executive Officer
(02) 9633 6476 @EnergyActionAUS
Ivan.slavich@energyaction.com.au
ww
w.linkedin.com/company/energy-action
info@energaction.com.au
MICHAEL FAHEY
ww
w.energyaction.com.au
Chief Operating Officer
& Chief Financial Officer
1300 553 551
(02) 9633 6405
michael.fahey@energyaction.com.au
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Communications by Energy Action Limited and its related bodies corporate (Energy Action) are subject to the terms of Energy Action’s General Disclaimer. Energy Action (Australia) Pty Ltd holds an Australian Financial Services Licence (AFSL No. 362843).

Tower 3 Collins Square , 747 Collins Street, Melbourne VIC

FORMAL BUSINESS MR MURRAY BLEACH, CHAIRMAN

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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

FORMAL RESOLUTIONS

• First Item of business: Consideration of the annual report, financial report, Directors report and Auditors report for the financial year ended 30 June 2018.

• .

• No questions for Ernst & Young were received prior to the meeting

• Representatives from our audit review partner, Ernst & Young are in attendance and will answer any questions relating to the conduct of the 30 June 2018 audit, the preparation of the financial statements, and the independence of the auditor.

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RESOLUTIONS

MR MURRAY BLEACH, CHAIRMAN

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Quintessential Equity - 44 Sydney Ave, Forrest ACT

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RESOLUTION 1

ADOPTION OF REMUNERATION REPORT

That the Company’s Remuneration Report for the financial year ended 30 June 2018, as set out in the Directors’ Report, is adopted.

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RESOLUTION 1

PROXIES

	For	Against	Open	Abstain
No. of Shares	9,894,204	20,647	935,833	0
% of Total Directed Proxies 91.19% 0.19% 8.62%

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RESOLUTION 2

RE-ELECTION OF DIRECTOR MR MURRAY BLEACH

That Mr Murray Bleach, a Director of Energy Action Limited who retires in accordance with clause 46.1 of the Constitution, and being eligible for re-election, is re-elected as a Director of Energy Action Limited.

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RESOLUTION 2

PROXIES

	For	Against	Open	Abstain
No. of Shares	14,589,695	118,002	935,833	0
% of Total Directed Proxies 93.26% 0.75% 5.98%

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RESOLUTION 3

RE-ELECTION OF DIRECTOR MR NITIN SINGHI

That Mr Nitin Singhi, a Director of Energy Action Limited who retires in accordance with clause 46.1 of the Constitution, and being eligible for re-election, is re-elected as a Director of Energy Action Limited.

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RESOLUTION 3

PROXIES

	For	Against	Open	Abstain
No. of Shares	14,705,497	2,200	935,833	0
% of Total Directed Proxies 94.00% 0.01% 5.98%

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RESOLUTION 4

RE-ELECTION OF DIRECTOR MR MARK DE KOCK

That Mr Mark de Kock, a Director of Energy Action Limited who retires in accordance with clause 46.1 of the Constitution, and being eligible for re-election, is re-elected as a Director of Energy Action Limited.

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RESOLUTION 4

PROXIES

	For	Against	Open	Abstain
No. of Shares	13,198,087	1,509,610	935,833	0
% of Total Directed Proxies 84.37% 9.65% 5.98%

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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.

To the maximum extent permitted by law, each of the Company, its directors, officers, employees, contractors, agents and advisers (each a Limited Party) expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this document including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this document including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom.

All information contained herein is current as at 20[th] November 2018 unless otherwise stated.

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