Vivopower Plc · NASDAQ:VIVO

Vivopower — VivoPower International — SPAC Merger (October 2016)

45 slides from Vivopower's SPAC merger presentation, Oct 18, 2016

  1. Slide 1: VivoPower International PLC Updated Investor Presentation

    VIVOPOWER INTERNATIONAL PLC 9 wivepower’ Updated Investor Presentation 18 October 2016

  2. Slide 2: Disclaimer

    DISCLAIMER

  3. Slide 3: Agenda

    AGENDA e Transaction Overview © Business and Industry Overview © Avpenaices Ovivorower.

  4. Slide 4: Transaction Summary

    TRANSACTION SUMMARY Ovivorower: VivoPower International PLC [VivoPower) is entering into @ business combination with Arowane Inc (ARWA) ARWA\s @ NASDAQ listed SPAC Special Purpose Accu 3 Company) with US$84m cash hele in trust Headavartered in Loncion, VivoPower is global solar power company VivoPom

  5. Slide 5: Transaction and Vote Update

    TRANSACTION AND EARNINGS UPDATE n vote & ne ‘ARWA has requested an extension off TRC vote deadline to January 9, 2017 Rationale is to allow sufficient time for the regulatory process to be finalized as well as completion ofa global marketing roadshow Notwithstanding the extension, the patties intend

  6. Slide 6: Overview of Proposed IBC Transaction Structure

    OVERVIEW OF PROPOSED IBC TRANSACTION STRUCTURE haces A. VivoPower is proposing an intial business oun combination (IBC) with ARWA, under which it wil issue shares to ARWA in exchange for cash cant wi gi B, VivoPower has executed agreements to acquire VivoPower Australia, subject to the Closing of th

  7. Slide 7: Overview of VivoPower International PLC

    OVERVIEW OF VIVOPOWER INTERNATIONAL PLC «that currently to establish and that will enable it grow a PPA! b: ell DG? power fata driver VivoPower is a global next e in a capital efficient manner. ompany. VivoPower's revenue model is akin to an enterprise software model with an expanding installed sola

  8. Slide 8: Key Investment Merits

    KEY INVESTMENT MERITS rong industry tallwinds founded of beareoom anc Confluence of declrng costs, polities! support in key markets and 2 a ‘omni suppor for cesn power wil acceerate the take-up of solr PV, ving sustlrable gronth Business model, product end service offering is easly scalable and rele

  9. Slide 9: Key Investment Risks and Mitigants

    KEY INVESTMENT RISKS AND MITIGANTS Emergence of new ower competitors ‘Adverse political & regulatory changes New power generation technology displaces solar Pipeline conversion rate Ovivorower: Risk of new players taking customers away from VivoPower Mitigant: the global solar addressable market i v

  10. Slide 10: Key Investment Risks and Mitigants (Cont'd)

    KEY INVESTMENT RISKS AND MITIGANTS (CONT'D) Risk Potential risks hav fully considered and mitigated Solar asset + Underperformance of assets could adversely impact power support service revenues & power generation revenues lunderperformance «_vjrgant: experienced team & rigorous investment committee

  11. Slide 11: Transaction Valuation Overview

    TRANSACTION VALUATION OVERVIEW 15611454 Stores oustanding 17994258 Twst mount per publeshare 1020 $1020 Iles orcnary equty valve s7sye7e1——_s99anest eve VnoPowerEnaneebles Papas 24 96642 ett azpo90 37600000 cho 977267 5109207 suptsasstsa, 4399000 34,9000, Enterprise value rersissss ——ssasta9ss tl ce

  12. Slide 12: Illustrative Transaction Sources & Uses of Cash

    ILLUSTRATIVE TRANSACTION SOURCES & USES OF CASH Cashin ARWA trast ecount 24.5 ARWA sherehelder redemptions 29 219 ‘Amounts payable ta redeem Aevita CPS 78 = ‘Amounts payable to redeem Actas Notes 175 075) 2 Amounts payable to serie Aevitasords 97 7 Transaction costs and other uses of cash 164 16a (C

  13. Slide 13: Post IBC Group Structure & Ownership Overview

    POST IBC GROUP STRUCTURE & OWNERSHIP OVERVIEW Fra Ownership at Closing (max redemptions) ARWA Public Holders ARWA insider Folders, 19% redemptions) Vivorower Shareholses 265 ARWA Public Holders, ARWA der 50% olor, 16% rite os tar ohne chong setae inborn feet 41029 a ccooar (2 Ree nshettt ton on awl

  14. Slide 14: Agenda

    AGENDA @ Transaction Overview e Business and Industry Overview © Avpenaices Ovivopower-

  15. Slide 15: VivoPower Has Offices and Personnel in Key Geographies

    VIVOPOWER HAS OFFICES AND PERSONNEL IN KEY GEOGRAPHIES. ® ge om ah isodon Doses Avanis Bsrectoce on Syeney Vivoower mays consider seeing to dl ston the ASK de course Management erat of proforma enplyees ion lime equsen stl Mad he business ombinstonaceureson Forest evens ang ET ae called on 2 pro for

  16. Slide 16: ...And Is Focussed on Selected Global Markets

    ..AND IS FOCUSSED ON SELECTED GLOBAL MARKETS Primary focus on OECD and ASEAN countries ... .« where grid parity exists or will soon exist ... ... for CIG and selected utility scale solar systems Ovivopower-

  17. Slide 17: VivoPower Is Building a Global Solar Power Platform

    VIVOPOWER IS BUILDING A GLOBAL SOLAR POWER PLATFORM Current revenue streams jf Future revenue streams Power support services Recurring aket anitoring. performance management ard preiuetoneptinization cnc ong term canacis wing net enertion solar arayiestechrology icy & storage services PA financing s

  18. Slide 18: ...That Delivers Value to Solar Developers & Asset Owners

    .» THAT DELIVERS VALUE TO SOLAR DEVELOPERS & ASSET OWNERS + Assetovners lea vant seet ‘operation maintenance and ivoPower's team comprises a diverse global mix of project financiers, engineers, procurement Pe ers, asset managers, logists and data scientists OD vivopower-

  19. Slide 19: VivoPower Sits in the Sweet Spot of the Industry Value Chain

    VIVOPOWER SITS IN THE “SWEET SPOT” OF THE INDUSTRY VALUE CHAIN Traditional utilities; regulated uit 10 Oo 6 6 CHF Gren Devco © @ 8 © Green Vesco OG GO Dae enieton copa rks Gee ee we recor @ © © OD @©® Woe itemationa Pic VivoPower's strategy is to build a high growth next generation green energy comp

  20. Slide 20: VivoPower Has a Well Defined Growth Strategy

    VIVOPOWER HAS A WELL DEFINED GROWTH STRATEGY... > ere Recurring power support services and asset optimization ‘and management revenue (which multiplies a installed solar power asset base grows) OD vivopower

  21. Slide 21: ...That Aligns with Its View on Disruption of the Energy Sector

    HAT ALIGNS WITH ITS VIEW ON DISRUPTION OF THE ENERGY SECTOR. Stage 2: DG “network effect" build out proliferates ‘+ Whats likely to happen? + Whats ely to happen? Solar hardware & EPC costs DG nedwork tect exoected to entinue to fll sharply inline manifest with solar & storage wth Swanson’s Law crii

  22. Slide 22: ...And Builds to an End Game of a CIG Focussed PowerCo 2.0

    ..AND BUILDS TO AN END GAME OF A CIG FOCUSSED POWERCO 2.0 CENTRALISED GENERATION 6 DISTRIBUTION Tins ted JA Soar cn Soar Heha QCels Players Hardware suply OM margin O vivovower coneray este solar Century Serie supohy Dev ee margin EPC service margin econ Copital Service supsy Cota supply bei fecreré

  23. Slide 23: The Decline in the Solar Cost Curve Is Accelerating

    THE DECLINE IN THE SOLAR COST CURVE IS ACCELERATING... /e been declining rapidly and battery storage cc the same $550/RWh S100/W $900/kWn Ol 7 201 2017 2020 cure: tery Storage for Renewables Matt Sstis an Technology Outlook Jeo wena 2015) O vivovower ® Ne S065. 1976 Solar PV costs have dropped by 2

  24. Slide 24: ...And Will Drive Strong Growth in Solar PV Penetration

    «AND WILL DRIVE STRONG GROWTH IN SOLAR PV PENETRATION ng exponentially, improving battery efficiency is dr grid parity Battery take-up Is forecast to grow exponentially over the medium term 2069 250 Ineresse of nstaled power by factor of 15% within seven years 1907 1246 1034 na 495 50 won om 2008 20

  25. Slide 25: Significant Disruption Is Still to Occur

    SIGNIFICANT DISRUPTION IS STILL TO OCCUR Solar stil only represents 1% c product global energy Solar Oil Other Nuclear Hydro Gas Coal Solar has yet to meaningfully capture marketshare ‘rom fossil fuels Soure: US. EA va wp dataport cessed Feb 2016 but we expect growing grid parity will continue to pr

  26. Slide 26: Storage Will Amplify the Solar Value Proposition

    STORAGE WILL AMPLIFY THE SOLAR VALUE PROPOSITION... Uslty-scale battery cell prices are forecast to decline - driving an increase in take-up and strong revenue growth significantly over the medium term... ‘or the battery technology sector 70 14900 o . 2000 | hi l iT A : Revenue ts8000) pe Technology

  27. Slide 27: ...And Catalyse a New Distributed Generation Architecture

    «AND CATALYSE A NEW DISTRIBUTED GENERATION ARCHITECTURE... nerey mix s shifting further towards renewable: a Se A, Socialis, ow. on 21s 7020 2A 2070 20% 20% 200 —FosstFiets —Renevaies § rl Ovivopower- @)

  28. Slide 28: ...That Will Cannibalise the Incumbent Grid Ecosystem

    «THAT WILL CANNIBALISE THE INCUMBENT GRID ECOSYSTEM 1985 1990 1995 2000 2005 2010 2014 xisting enerey architecture is a century old and inefficient. So b-pa-r (© Single falure points can eave us inthe dark eure U5. van p daa pve org secesed Feb 2018 Ovivopower- 8)

  29. Slide 29: Digitization of the Media Industry Has Been Hugely Disruptive

    DIGITIZATION OF THE MEDIA INDUSTRY HAS BEEN HUGELY DISRUPTIVE Content and information in the media industry have become digitized into data Global Advertising Spend by Select Mediums (US$m) Ey 00m sooo RESEHERERRRRRRRSEEES Source: PAC Glob Entertsnment ana Meda Outer Market Capitali ‘Comp: sono00 sa

  30. Slide 30: Digitization of the Power Industry Is Likely to Be Even More So

    DIGITIZATION OF THE POWER INDUSTRY IS LIKELY TO BE EVEN MORE SO Just as with Content and Information, Power is likely to be digitized and become Data, paving the way for a Digital Utility aon and ing ‘Network effect platform supports distributed generation networis and markets Bs i a. 2 thing ‘ean e

  31. Slide 31: VivoPower Is Positioning to Lead in This New Energy World

    VIVOPOWER IS POSITIONING TO LEAD IN THIS NEW ENERGY WORLD iG customers will face an increasingly complex energy ecosystem ‘especialy in a DG world where povier i digitized Energy management will nt just be a“boitom line” expense iter but alo a data management exercise, in some cases 4 "top Ine reven

  32. Slide 32: VivoPower Has Assembled a Highly Experienced Board

    VIVOPOWER HAS ASSEMBLED A HIGHLY EXPERIENCED BOARD... O vivovower nd Bcutve Chatan of VivePawer shay sharchalar rowan Has extensive arourh and trnround experinde at @ CEO, CFO and COO inclusng leadership rol in uiding 9 ob terprse sotare busines cated by Ore Tora nied CEO and board mbar of ‘ve iba e

  33. Slide 33: ...And a Strong Leadership Team

    «AND A STRONG LEADERSHIP TEAM Ovivopower- ©)

  34. Slide 34: VivoPower Generates Upfront & Recurring Revenues

    \VIVOPOWER GENERATES UPFRONT & RECURRING REVENUES.. slar Systems BTO Sales Upfront revenues Recurring revenues Recurring revenues Recurring and upfront derived from the BTO derived from ongoing derived from operational revenues derived from (build, transfer and asset monitoring and solar power plant

  35. Slide 35: ...With a Growing Recurring FCF Profile

    .WITH A GROWING RECURRING FCF PROFILE as different sources of recurrir fits b > Recurring revenue generated by = Power Support Services = Power Generation = Power Asset Management Services * This allows VivoPower to generate increasing recurring FFs each year even if BTO revenues stay relatively con

  36. Slide 36: VivoPower's Growth Outlook Is Strong

    VIVOPOWER'S GROWTH OUTLOOK IS STRONG... EBIT CAGR: 23% 176 2017 2018 2019 2017 2018 \VivoPower has already contracted a significant amount of its forecast revenue for FY17 vivopower. 2019

  37. Slide 37: ...Underpinned by a Visible Global Pipeline of Opportunities

    .~UNDERPINNED BY A VISIBLE GLOBAL PIPELINE OF OPPORTUNITIES Pipeline overview (GW) and project type (6) Forecast MW executed by year Estimated pipeline conversion ate requied to achieve forecast : L] 1250" L Sy L750" rie Leads uated Leses ots aie ate 1Pipetne) pra etl active musity ii VivoPower's fi

  38. Slide 38: Agenda

    AGENDA @ Transact O Busines: © Arpendices in Overview: d Industry Overview Ovivorower.

  39. Slide 39: VivoPower: Pro Forma Historic & Forecast Statement of Income

    ‘VIVOPOWER: PRO FORMA HISTORIC & FORECAST STATEMENT OF INCOME Basis of Preparation Ges effect to the proposed business combination asf it was eeced on ‘Api 1, 2015 Adjusts n the pr forma storie are based on arte 11 of Reg SX ate recty stro uable to the transaction, facully supportable nd, fr the Sta

  40. Slide 40: VivoPower: Pro Forma FY16 Statement of Financial Position

    VIVOPOWER: PRO FORMA FY16 STATEMENT OF FINANCIAL POSITION

  41. Slide 41: Reconciliation of Earnings Metrics to IFRS Financial Measures

    RECONCILIATION OF EARNINGS METRICS TO IFRS FINANCIAL MEASURES Ince att eto 09) oa ba co ‘nein NPAT o/s ort arg SESS Eo) ry Bs 18 a7 Nett oan a6 os 3) os)

  42. Slide 42: Overview of Aevitas-VivoPower Exchangeable Securities

    OVERVIEW OF AEVITAS-VIVOPOWER EXCHANGEABLE SECURITIES Summary of Proposed Note Terms: iets (3 Deca 2036) SIZ iat same 2016) USES emer contine ‘ah pe or Ft oon Ferentconstions lens Psion oy ay s02ige2021 Ey eeron fang eset remaster aneee De! (cg det boi tsa 190 Nees oho

  43. Slide 43: Capital Structure Under Various Redemption Scenarios

    CAPITAL STRUCTURE UNDER VARIOUS REDEMPTION SCENARIOS (US$, clsing) ‘ARWAcashin tt >sssassoo 4680200 42728000 saons200 sa7a7/00 2955400 2594800 24,958,560 Stores ounding 70ag254 140H2H54 35470454 15214454 LASONAES —4BHHSE —9.97RU58 —TO.4A1ASH Twstamount per publeshare $10.20 1020 $1020 $1020 $1020 $1

  44. Slide 44: Peer Trading Multiples

    PEER TRADING MULTIPLES \VivoPower is @ unique business with few public or private pees, given is capital efficient business mode Nevertheless, there are a small pumber of listed companies of comparable size, operating in similar markets and with similar business models slobally~ with the most releve

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