Vmoto Limited · ASX:VMT
Vmoto — Shareholder Meeting (May 2015)
21 slides from Vmoto's shareholder meeting presentation, May 21, 2015
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 21 May 2015
Slide 2: 2014 – A very busy 12 months
For personal use only 2014 – A very busy 12 months that saw us deliver significant growth in revenues and unit sales and expand into new markets and products
Slide 3: Key achievements in 2014
Key achievements in 2014 For personal use only Growth across all key 76,000 units sold metrics Profitable and cashflow Successful expansion into positive new markets Underlying earnings Acquisition of Haiyong, a growing faster than prominent EV controller revenues* business Formation of a JV to ente
Slide 4: Share price growth since Jan 2012 reflects milestones achieved
Share price growth since Jan 2012 reflects milestones achieved For personal use only Performance (indexed) 4.50 4.00 Growth over period: 264.29% 3.50 3.00 2.50 2.00 Growth over period: 42.92% 1.50 Growth over period: 36.00% 1.00 0.50 Growth over period: 1.53% 0.00 1-Jul-12 1-Jul-13 1-Jul-14 1-Jan-12
Slide 5: Production and sales growth
Production and sales growth For personal use only Production and sales continues to grow as the company expands • Production and sales expected to 90,000 increase to >93,000 units in 2015 80,000 • Current production mostly consists of two-wheel vehicles 70,000 • Three and four-wheel production 60,00
Slide 6: Strong sustainable growth
Strong sustainable growth For personal use only Continuing sustainable growth in 2014 Statutory EBITDA Revenue 50 45.1 1.5 1.3 1.1 $m $m 40 30 25.2 0.0 20 9.8 10 - -1.5 -1.3 FY12 FY13 FY14 FY12 FY13 FY14 • Revenue grew by 79% in FY14 • Statutory EBITDA of $1.1m in FY14 • Underlying EBITDA* of $4.0m
Slide 7: Strong sustainable growth: growing profits and cash
Strong sustainable growth For personal use only Generating growing profits and cash Statutory NPAT Operating Cash Flows 1.5 1.0 0.7 0.9 $m $m 0.4 0.0 0.0 -1.0 -2.0 -2.0 -1.5 -3.0 -4.0 -2.2 -3.8 -3.0 -5.0 FY12 FY13 FY14 FY12 FY13 FY14 • Statutory NPAT of A$0.9m in FY14 • Four consecutive quarters of
Slide 8: Strong balance sheet
Strong balance sheet For personal use only Key balance sheet items (A$m) 31 Dec 14 31 Dec 13 Cash 3.9 4.4 • Debt reduced, assets increased by $10.5m Other assets 31.3 20.3 • Inventory up $0.8m to $6.0m due Total assets 35.2 24.7 to increased production levels to Borrowings 4.7 5.5 meet demand Other
Slide 9: Nanjing Haiyong acquisition
Nanjing Haiyong acquisition For personal use only Vmoto acquires Nanjing Haiyong Electric Technology Co. • Nanjing Haiyong is an advanced electronic technology company focused on producing controllers, a key component in electric vehicle driving systems • The acquisition gives Vmoto access to electr
Slide 10: Patented handle bar technology agreement
Patented handle bar technology agreement Cooperation Agreement signed with Changzhou Dusheng For personal use only Electrical Equipment Co. • Agreement signed with the third largest handle bar manufacturer in China • Dusheng will pay a royalty to Vmoto based on the sales volume of handle bars that u
Slide 11: Joint venture to enter electric three-wheel and four-wheel vehicle markets
Joint venture to enter electric three-wheel and four-wheel vehicle markets New JV formed with a number of experienced partners in For personal use only China’s electric vehicle market • New JV will focus on design, manufacture and distribution of electric three- and four-wheel vehicles for Chinese d
Slide 12: 2015 – Building on leverage inherent in business
For personal use only 2015 – Building on leverage inherent in business
Slide 13: Expanding into high margin markets
Expanding into high margin markets Currently over 40 wholly owned and third party distribution For personal use only outlets in China …as well as increasing higher margin international distribution – now in over 30 countries 13
Slide 14: Expanding into high margin markets: international sales
Expanding into high margin markets Over the past eighteen months, Vmoto has delivered products or For personal use only samples to: • Brazil • Belgium International Unit Sales • Mexico • Vietnam 10,000 9,121 Croatia 9,000 • • Iran 8,000 • Denmark • Taiwan 7,000 • Malaysia • South Africa 6,000 • Japa
Slide 15: Well positioned to ramp up over the next three to five years
Well positioned to ramp up over the next three to five years For personal use only Production facility has capacity to handle increased demand • 30,000sqm state of the art manufacturing facility in Nanjing, China - Wholly owned, fully paid for, equipped plant in key industrial zone - Currently runni
Slide 16: Strong start to 2015
Strong start to 2015 For personal use only Positive first quarter setting up for remainder of 2015 and beyond • Over 19,400 scooters sold in 1Q15, up 37% from 1Q14 • Higher margin international sales continue to grow - >20% of total sales (1Q15 international sales of 4,067 units – up 99.6% on 1Q14)
Slide 17: Key priorities moving forward
Key priorities moving forward For personal use only Domestic and international growth • Continued focus on higher margin international sales – B2B and retail • Domestic China expansion – targeting 300 outlets by 2017 through new distributors and own retail stores • Reach production capacity at facto
Slide 18: Electric vehicle market
Electric vehicle market For personal use only • Two-wheel electric vehicles account for the • External factors influencing the electric vehicle market: largest proportion of the electric vehicle market • Government policy on sustainability and environment • Chinese domestic market accounts for 92% o
Slide 19: 2015 – we're not slowing down
2015 – we’re not slowing down For personal use only Forecast EBITDA of A$6m – Forecast NPAT of A$5m – A$8m A$7m Continue to increase Chinese footprint with new Increase international sales retail stores and distributors Progress production of Forecast sales of over 93,000 three and four-wheel two-wh
Slide 20: Contact
Contact For personal use only • Charles Chen, Managing Director – +61 (8) 9226 3865 – charles@vmoto.com.cn • Olly Cairns, Non-Executive Director – +61 (8) 9226 3865 – olly@vmoto.com
Slide 21: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE The information contained in this presentation is current as at 21 May 2015 and is provided by Vmoto Limited (ABN 36 098 455 460) (“Vmoto”) as a summary document for information purposes only. Any forward looking statements included in this presentat