Locality Planning Energy Holdings Limited · ASX:LPE
Locality Planning Energy — Investor Presentation (September 2015)
17 slides from Locality Planning Energy's investor presentation, Sep 10, 2015
Slide 1: LPE Acquisition and Investor Presentation Update
10 September 2015 ASX ANNOUNCEMENT LPE ACQUISITION AND INVESTOR PRESENTATION UPDATE HIGHLIGHTS • LPE is the only authorised electricity retailer targeting ‘strata communities’ • Strata communities under management by LPE (contract to supply or in the conversion process) UP 100% to 50 since July 2015
Slide 2: About Locality Planning Energy Pty Ltd (LPE)
About Locality Planning Energy Pty Ltd (LPE) LPE holds 1 of only 20 active energy retail authorisations with the Australian Energy Regulator (AER) to supply and sell electricity to residential, commercial and industrial customers throughout the National Energy Market. LPE supplies and manages electr
Slide 3: September 2015
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Slide 4: Disclaimer
Disclaimer This presentation contains summary information about Locality Planning Energy Pty Ltd (LPE) and is current as at 8 September 2015. The information in this presentation is of general background and does not purport to be complete. This presentation is not investment or financial product ad
Slide 5: LPE is the iiNet of the Electricity Retailer Market
LPE is the iiNet of the Electricity Retailer Market • 1 of only 20 active electricity retailers authorised by the Australian Energy Regulator (AER) • LPE has a UNIQUE purchasing model matched against 5 to 10 year supply contracts with customers • Low risk business model • Only retailer targeting the
Slide 6: How Big is the National Energy Market (NEM)?
How Big is the National Energy Market (NEM)? • Physically the largest interconnected electricity grid in the world. • More than 200,000GW is traded annually on the NEM • $37 billion worth of electricity traded through retailers on the NEM Energy Breakdown by Sector (NEM) Strata 10% Commercial / SME
Slide 7: Target Market
Target Market • Strata communities = 20,000GW • LPE’s Initial Target = 400GW (just 2% of Target Market) Immediate Target Market Target strata communities have a minimum of 30 lots and use a total of 0.5GW pa (average) Queensland* • ~15,500 target strata communities • ~7,750GW South East QLD (SEQ)* •
Slide 8: Business Model
Business Model • LPE’s supply structure provides an energy purchase model that significantly reduces the network charges and risk to the retailer • Savings passed onto customers without discounting LPE’s margin • Customers on 5 to 10 year supply contracts 2.6% 31% Saving Saving 100.0% 13.3% 90.0% 10
Slide 9: Business Plan
Business Plan Initial target • 800 strata communities under management • Average 0.5GW per strata community = 400GW Current progress (September 2015) • 50 Strata communities under contract to supply or in the Site Conversion conversion process in SEQ market Daily Service 6.3% 10.4% Retail • 100% inc
Slide 10: Business Plan cont'd
Business Plan cont’d Additional capital will provide opportunity to accelerate Initial Target timetable and GW sales volume through: • Increase sales and operational process teams • Support growing site conversion funding requirements (equity and debt) • Ability to acquire billing administrator’s ex
Slide 11: Marketing Plan
Marketing Plan Current pipeline • 441 existing strata communities and 21 new strata developments at various stages in the negotiation process • Increase of 21.9% since July 2015 • ~185GW or 46¼% of Initial Target (assuming 80% conversion) Marketing initiatives • Become active associate member of Str
Slide 12: Future Growth Opportunities
Future Growth Opportunities • Signed MOU agreement with Tritium to develop Electric Vehicle charging network. (Refer ASX:SXT 13 August 2015) • Expansion into strata communities market in NSW, VIC and SA • Expansion into commercial & industrial strata communities sector (Refer ASX:SXT 3 August 2015)
Slide 13: Directors/Management (Post acquisition by Stratum)
Directors/Management (Post acquisition by Stratum) Andrew Pierce – Chairman Current Chairman of Stratum, accomplished and highly regarded accountant and director on various boards, with specific skills in financial reporting, company regulatory and governance areas. Fellow of the Institute of Charte
Slide 14: Indicative Capital Structure
Indicative Capital Structure Post acquisition of LPE by Stratum: Convertible Performance Shares Options Loans/Notes $ Shares Current @ 8 September 2015 249,458,414 51,232,437 1,500,000 Conversion of Notes and Loans plus 96,174,075 46,392,380 (1,500,000) interest1 2 Capital Raising3 300,000,000 - Sub
Slide 15: Summary
Summary • LPE are the only retailer targeting the residential strata sector • 1 of only 20 active energy retail authorisations with the AER • LPE has a UNIQUE purchasing model matched against 5 to 10 year supply agreements with customers • Business model provides consistent trailing revenues • Targe
Slide 16: Annexure A
Annexure A Billing and Sales Software • Dedicated billing platform licensed with proprietary IP • Proprietary sales and operational process software developed by LPE 14
Slide 17: Annexure B
Annexure B National Energy Market 15
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