Vivopower Plc · NASDAQ:VIVO
Vivopower — VivoPower International — H1 FY2018 Earnings Presentation
22 slides from Vivopower's earnings presentation, Nov 22, 2017
Slide 1: VivoPower
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Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking statements" relating to VivePower International PLC (“VivoPower’) within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, estimates relating to our future energy development and investment activ
Slide 3: Highlights for Fiscal Year to Date
HIGHLIGHTS FOR FISCAL YEAR TO DATE Strategic Shiftto Solar Power Developer, Co-Owner, Producer and Operator April 2017 + Secured ownership of 1.8 megawatt (MW) development portfolio in the US - VivoPower is now one of the top 5 solar power project developers in the US* May 2017 + Executed Alliance A
Slide 4: Financial Results for H1, FY2018
FINANCIAL RESULTS FOR H1, FY2018 Profit & Loss (USSm) Mar 31, 2017 Sept30, 2017 Comments Project revenue is recognised on a percentage-of-completion basis in line with (Filename 24 17 IERS 18 and relates to the completion of 2 projects in North Carolina, USA Power services ty) 144 Includes the reven
Slide 5: Outlook for FY2018
OUTLOOK FOR FY2018 US trade case initiated by bankrupt Suniva has created uncertainty and temporary price increase as developers lock in supply. - Whether or not a tariff is imposed, we believe that the cost of solar equipment will continue to deciine. - Prior tariffs during the Obama administration
Slide 6: VivoPower Strategic Overview
VIVOPOWER STRATEGIC OVERVIEW QO Who we are + Global solar power developer and producer (Nasdaq: VVPR) + Experienced team with decades of solar power experience on a global basis © Our mission “We drive the development, construction, financing and operation of solar power infrastructure to meet our g
Slide 7: Portfolio Growth
PORTFOLIO GROWTH ivoPower has delivereda step change 1,884 MW owned* 93 MW operating 91 MW owned 2.2 MW operating f ' 0.6 MW owned f 0 MW operating : 1 ' n 2014 201 2016 2017 VivoPower ites 18 GW Formation of Builds global Development of wie Notth Carolina solar join VivoPower management team ae Aus
Slide 8: Solar Development Life Cycle
SOLAR DEVELOPMENT LIFE CYCLE Illustrative project fair market value (S/W) $2.06/W VivoPower can create significant equity value through fay development cycle $0.00/W Development onstru Oper actos (ied cad a Recycle profits Stable, recurring revenues Third party capital Long:term (35+ years) acre SEO
Slide 9: VivoPower Indicative Sum of the Parts Valuation
VIVOPOWER INDICATIVE SUM OF THE PARTS VALUATION (USD in millions) : 520 ‘A sum of the parts analysis 19 $22 implies a common equity 5 Piscean] valuation that is 4.0x — 5.0x VivoPower’s current market capitalization. $233 $194 sir <> Current VivoPower Market Capitalization Estimated Development Expen
Slide 10: Qualified Global Pipeline
QUALIFIED GLOBAL PIPELINE Focus on converting pipeline into owned and operating solar power plants Qualified projects by geography”) Global solar power project portfolio (MW) Europe (50 MW) 2,000 1,884 LatAm (30 MW) 1,800 Australasia (438 MW) il 1,600 1,400 1,200 1,000 2.3 GW 300 600 400 US (1,790 M
Slide 11: Year Strategic Growth Horizon
5 YEAR STRATEGIC GROWTH HORIZON Revenue 2016 2017 2018 2019 2020 Stack Recurring revenues from power services including storage, Power Power Bite demand response management and data driven technology Sone services Recurring revenues from minority ownership in solar power plants underpinned by long-t
Slide 12: Investor Value Proposition
INVESTOR VALUE PROPOSITION @) & Large and growing global Experienced management addressable market and execution team Strong risk management Building base of long term framework and controls cash flows Co) vivopower Top 5 US solar development portfolio Growing diversified recurring revenue streams
Slide 13: Appendices
APPENDICES O vivopower
Slide 14: Global Footprint and Portfolio
GLOBAL FOOTPRINT AND PORTFOLIO LEGEND: j @ Target markets Lr ce | * Qualified pipeline 3, ‘Note: Qualifed pipeline refersto the total number of projects (measured by MW) which are subjectto term sheet or letter of intent, pending lligence and financing or similar stage ‘of discussion for potential a
Slide 15: Management Team
MANAGEMENT TEAM Carl Weatherley-White ChiefExecutive Officer + Over 25 years of renewable energy experience, with a focus onM&A, development, financing, private equity andjointventures + Formerly President & CFO of Lighteam Electric Company + Previously Managing Director and Global Head of ProjectFi
Slide 16: Powerful Long Term Industry Tail Winds
POWERFUL LONG TERM INDUSTRY TAIL WINDS Cost of solar power‘) ($/MWh) 300 s270 3250 3 sa %, 200 2 % 3168 = 60 & so| Ws sie S108 00 # sor Ml seo OD so $72 ad 0 so ny 2010 2011 2012 2013 2014 2015 2016 (1) Unsubsidized levelized costof energy for utility scale PV. Source: Lazard Levelized Costof Energy
Slide 17: Significant Appetite for Developed Solar Projects
SIGNIFICANT APPETITE FOR DEVELOPED SOLAR PROJECTS Highly attractive characteristics @ Stable and predictable cash yield + Decades of expected performance and low operating expenses + Little maintenance capital needs (2) Equity returns without market volatility + Highest risk-adjusted returns among c
Slide 18: Case Study 1: 91MW Ground Mount Solar Assets
CASE STUDY 1: 91MW GROUND MOUNT SOLAR ASSETS Transaction summary NC31 & NC47 Partners New Energy Solar Fund US Bancorp Starbucks Corporation Summary + Completed development and construction of two projects during FY 2017 + 91MW in North Carolina, with Duke Energy long-term power contracts + $13.7 mi
Slide 19: Case Study 2: Rooftop Asset Portfolio
CASE STUDY 2: ROOFTOP ASSET PORTFOLIO Transaction summary Operational rooftop asset portfolio Partner ReNu Energy (ASX: RNE) of Australia Ketridges (stockfeed producer) Summary + ROFO agreement for projects under § MW + First project (600 kW Amaroo) + Annual alliance fee for § year term and an up-fr
Slide 20: Case Study 3: US Joint Venture
CASE STUDY 3: US JOINT VENTURE Transaction summary JV Partner Innovative Solar Systems (ISS) Summary + 1.8 gigawatts of utility scale projects * 9 states across the United States + ISS responsible for development + VivoPower has limited capital invested + VivoPower has right to acquire developed pro
Slide 21: Reconciliation of Adjusted EBITDA to IFRS Financial Measures
RECONCILIATION OF ADJUSTED EBITDA TO IFRS FINANCIAL MEASURES Non-IFRS Financial Measures (US$m) Sept 30, 2017 Net income (5.9) Taxation (1.0) One-off extra-ordinary costs( Transaction costs Interest income and expense 7 ‘Amortization of identified intangibles recognized in business combinations 12 D
Slide 22: Signature
Signature Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 22, 2017 VivoPower International PLC /s/ Carl Weatherley-White Carl Weatherley-
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