EPX LIMITED — Capital/Financing Update 2024

Nov 12, 2024

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EP&T Global Limited Operations Update – October 2024

13 November 2024 EP&T Global Limited (ASX: EPX) the building energy optimisation company helping clients contribute to a greener future, is pleased to release its July to October 2024 operating update.

Regular updates will be issued throughout the financial year to keep shareholders informed on the company’s sales performance and operational efficiency. These updates will also cover key operational developments, offering insights into the progress and efficiency of EP&T’s business activities.

Highlights

• Site Numbers have increased from 547 sites in June 2024, to 560 sites as at 31 October 2024.

• Annual Contract Value for the period between July to October 2024, increased by $0.2m from June 2024, to $16.3m. This increase comes at a traditionally slower period for the Company, given the European and Middle East summer holiday period.

• Annual Recurring Revenue for the period between July to October 2024 increased by $0.25m from June 2024 to $13.85m continuing the momentum to converting ACV to ARR.

• New contracts include:

• Continued expanded engagement with Leading European Asset Manager : Additional buildings in Europe, and the UK for an existing top-tier Europeanbased asset manager, adding $0.1 million in revenue during the period.

• New Australian Real Estate Advisory Contract: Initial contract signed for one site with a major Australian real estate advisory firm, a globally recognised brand in property management serving private, institutional, and government clients across Australia. Discussions are underway to extend the EDGE platform to further sites managed by this client.

• New Opportunity with Leading UK Merchant Bank: Partnership with a prominent UK merchant bank, listed on the FTSE, to assist in environmental impact reduction, initially across 14 of their 60 UK locations. Initial engagement focuses on designing a customized service solution to connect to our EDGE platform, with ongoing discussions for a broader rollout across all UK sites.

• Coda Acquisition completed enhancing our EDGE platform, as well as new features such as digital twin visualisation and remote fault detection and maintenance analytics, allowing for more targeted optimisation opportunities. Business acquired at less than 1x ARR ( refer EPX announcement 2 October 2024 ).

Site Numbers

Site numbers continue to grow, with EP&T now monitoring 560 sites in over 25 countries. This is one of the key factors allowing EP&T to engage with multinational property owners and managers, given the Company’s ability to monitor sites in different locations and provide optimisation opportunities in different temperature and operating environments.

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EP&T Global Limited ACN – 645 144 314 Suite 11.02, 213 Miller Street, North Sydney, NSW 2060

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600
500
400
300
523 547 560
471
200 387
259
100
0
FY20 FY21 FY22 FY23 FY24 Oct-24
Site number
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Annual Contract Value (ACV A$m)

ACV grew by $0.2m for the period July to October 2024, with net ACV now at $16.3m. The period of July to October is traditionally a slower period due to the European and Middle Eastern summer period, where now over 70% of revenue is derived by the business.

This ACV growth is better than the same corresponding period in FY24, where during that period sales were flat. During July to October, there has been positive momentum in our sales pipeline. EP&T’s sales pipeline is building with both new customer opportunities and existing customers, showing positive signals leading into the traditionally stronger periods for the business.

New customer opportunities of note include:

• New contract for initially one site with a major Australian world-class property and real estate advisory services business, which provides advice and management to a diverse range of private, institutional, and government clients across Australia. They are part of a global brand in real estate advisory. EP&T is in discussion for further of their Australian managed sites and supports our strategy of targeting global brands with many managed or owned sites in multiple jurisdictions.

• EP&T has been engaged by a new customer being a leading UK merchant banking entity listed on the FTSE. Initially EP&T will design for 14 of their 60 UK locations for the EDGE technology solution to support their continued commitment to reducing the impact of their building operations on the environment.

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$18
$16
$14
$12
$10
$8 $16.1 $16.3
$14.4
$13.3
$6
$10.9
$4 $7.6
$2
$-
FY20 FY21 FY22 FY23 FY24 Oct-24
A$m
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EP&T Global Limited ACN – 645 144 314 Suite 11.02, 213 Miller Street, North Sydney, NSW 2060

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A key area management has been focussed on is ACV per site, an indicative measure in EP&T’s ability to grow with existing customers. During the July to October 2024 period, this has been maintained, with an approx. $29k per site ACV value, maintaining the good work delivered in FY24.

ACV per Site (A$’000)

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$30
$30
$29
$29
$28 $29.3 $29.4
$29.1
$28
$28.2 $28.2
$27 $27.5
$27
FY20 FY21 FY22 FY23 FY24 Oct-24
$'000
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Annual Recurring Revenue (ARR A$m)

ARR grew by $0.25m from June 2024, for the period between July to October 2024. ARR growth is driven by a combination of factors, including obtaining site access, management of third party installation contractors, and commissioning/system integration ease with existing site systems.

The current installation process continues to be maintained under 90 days, which is the internal targeted benchmark. ARR is a good future indicator of future cashflow for the business.

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$16.0
$14.0
$12.0
$10.0
$8.0
$13.6 $13.9
$6.0 $11.7
$9.2
$4.0
$5.1 $5.3
$2.0
$-
FY20 FY21 FY22 FY23 FY24 Oct-24
A$m
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In growing ARR, EP&T is seeking to do so efficiently. A key measure monitored is ARR per total FTE in the business. We are pleased this measure continues to show a good trend, with ARR per FTE being at approx. $197k per FTE for the period July to October 2024.

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EP&T Global Limited ACN – 645 144 314 Suite 11.02, 213 Miller Street, North Sydney, NSW 2060

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ARR per FTE (A$’000)

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$250
$200
$150
$100 $197.1 $197.9
$149.4
$136.3
$50 $91.1 $90.6
$-
FY20 FY21 FY22 FY23 FY24 Oct-24
$'000
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CEO, John Balassis said, “ Having come through a difficult operating turnaround to right size the business, we are now focussed on growing ACV and converting it to ARR, whilst working with our customers to provide the technology needed to allow them to achieve their net zero goals. Our aim is to contribute to our ultimate purpose as a Company as a responsible global organization, that being to achieve over 1m kgs of Co2 savings from the built environment, and assist our customers achieve a combined A$20m in annual energy savings from their building sites.”

John added, “ Whilst we would have liked a better opening period to the financial year FY25, revenue growth for the period July to October 2024 has been positive as compared to the same period in the FY24 year, and our pipeline is showing some good, advanced opportunities leading into the more active sales period of our business.”

EP&T in the News

During the period July to October 2024 EP&T achieved the following:

• CEO John Balassis sat down with Proactive Investor’s Tylah Tully, to talk about the Company’s recent acquisition of the business and assets of Coda Cloud. A link is provided below.

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• Sponsored two events in Australia as follows:

• Australian Institute of Company Directors - EP&T sponsored the AICD’s Sydney Directors’ Breakfast – Climate & Sustainable Finance at The Fullerton Hotel Sydney.

• Property Council of Australia – EP&T was a major sponsor of the 46[th] Property Congress in Townsville, for their inaugural Technology session at the Townsville Entertainment and Convention Centre.

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EP&T Global Limited ACN – 645 144 314 Suite 11.02, 213 Miller Street, North Sydney, NSW 2060

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• Obtained a key accreditation in the Middle East market. The ESCO Accreditation is issued by the Dubai based Energy Saving Company (‘ESCO’) and is an accreditation in Dubai. The accreditation scheme aims to give corporations in the Middle East the confidence in contracting with ESCOs by recognizing companies which have:

• appropriately qualified personnel in the organisation;

• robust financial status; and

• a track record of successfully delivering energy saving projects in Dubai.

The accreditation is a key milestone for EP&T and valid until 2027.

This announcement has been authorised for release to the ASX by the Board of EPX.

About EP&T Global

EP&T Global, the most trusted building efficiency platform provider, is a data as a service platform that delivers sector leading cost and energy efficiency in buildings. EP&T is a global leader in reducing energy costs and delivering energy efficiency in the built environment.

EP&T’s proven proprietary EDGE cloud technology delivers energy cost and GHG emissions reduction in commercial real estate. It is a data repository collecting and analysing more than 5.6 billion points of data per annum with proprietary algorithmic analysis and machine learning.

EDGE data analytics collects BMS and metering data from a 500+ buildings, 7.5+ million sqm portfolio, in over 25 countries. It accurately identifies operational inefficiencies and CO2 reduction opportunities and provides auditable insights that on average deliver 21% reduction in energy consumption.

For more information, please contact:

John Balassis Patrick Harsas Chief Executive Officer Chief Financial Officer investor@eptglobal.com

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Connect with us

ep&t global: | LinkedIn

www.eptglobal.com | Website

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EP&T Global Limited ACN – 645 144 314 Suite 11.02, 213 Miller Street, North Sydney, NSW 2060