Vivopower Plc · NASDAQ:VIVO
Vivopower — VivoPower International — FY2018 Earnings Presentation
19 slides from Vivopower's earnings presentation, Jul 26, 2018
Slide 1: Results Presentation for the fiscal year ended March 31, 2018
9 vivopower RESULTS PRESENTATION For the fiscal year ended March 31, 2018
Slide 2: Disclaimer
DISCLAIMER This presentation contains ‘Yorwarclooking statements” relating to VwoPower International PLC ("VivoPower’) within the meaning of the Private Secures Litigation Reform Act of 1905, Inoluding, Dut not imited to, estimates relating tur future energy developmert and investment actifies. You
Slide 3: VivoPower at a Glance
VIVOPOWER AT A GLANCE + An international solar power developer... + ... with one of the USA's largest solar power development portfolios.. +... and impressive growth in the Australian Power Services business + NASDAQ: WPR Create value through solar project development Drive development milestones +
Slide 4: New CEO & CFO appointed in FY18; management team streamlined
NEW CEO & CFO APPOINTED IN FY18; MANAGEMENT TEAM STREAMLINED Pp) aq wo _ Ovivopower Ccanweatnerey vite Chet Erciive oie ‘ver 25 year ofrenewable one experience witha focuson MEA development ancing pate equtyandontventes + Former President& CFO ot Ughtbeam Bece Company + Previous ManagngOiectorand Gl
Slide 5: Simplified and focused business model
SIMPLIFIED AND FOCUSED BUSINESS MODEL + Transition tonew leadership team + Focuson execution + Focus on core markets and strength = US and Australia * Satellite presence in * Cease Latam and Europe New ff FocuseD <<< LEADERSHIP ff GEOGRAPHIES + Lean and agile approach DRIVE SOLAR | GROW POWER DEVELO
Slide 6: Key challenges in FY2018
KEY CHALLENGES IN FY2018 a =) ‘Trump tariffs adversely impacted development plan o = Right sizing of cost base Ovivopower Litigation commenced against former CEO Centralise accounting functions ‘Slow development of solar ine in Australia Improve execution with lean team
Slide 7: Key results delivered in FY2018
KEY RESULTS DELIVERED IN FY2018 ee Top tier US solar developer with 1.8 GWportfolio Outperformance of Aevitas power services unit in Australia Ovivopower 50% of US projects (941 MW) progressed to advanced stage Strategic review initiated for 1.8 GWUS solar portfolio 40% reduction in annual overhead
Slide 8: Financial results summary for the year ended March 31, 2018
FINANCIAL RESULTS SUMMARY FOR THE YEAR ENDED MARCH 31, 2018 it & Loss (USSm) 2017 2018 Comments Solar Development Revenue 26.6 1.8. Intal2 projects complete in FY'17; no new projects in FY18 due to various industry headwinds Gross Profit, 26.6 0.8 Development fees represent VivoPone’s project develo
Slide 9: Balance sheet as at March 31, 2018
BALANCE SHEET AS AT MARCH 31, 2018 Balance Sheet (USSm) 2017 2018 Comments Project investments 184 14.1 Investment commitment tothe I Joint Venture Other non current assets 519 40.9 Principally goodwit ana intangibles arising on the 2016 business combination Cash 110 1.91 Receipt ofS-47 development
Slide 10: Reconciliation of Adjusted EBITDA to IFRS financial measures
RECONCILIATION OF ADJUSTED EBITDA TO IFRS FINANCIAL MEASURES Non-IFRS Financial Measures (USSm) 2017 2018 Net income 5.6 (27.9) Taxation 53 (6.3) Interestincome and expense 06 a4 Transaction costs 58 - Impairment of goodwill - LEN Impairment of assets # 10.2 Restructuring costs - 19 ‘One-off non-rec
Slide 11: Short term headwinds offset by long term tailwinds
SHORT TERM HEADWINDS OFFSET BY LONG TERM TAILWINDS + Tariffs Trump's tariffs adversely impacted VivoPower’s development timing + Competition for off-take contracts Utilities have scaled back standard offer contracts / intense competition in RFP opportunities + Low power prices Solar competes on marg
Slide 12: VivoPower strategic focus: two growth pillars
VIVOPOWER STRATEGIC FOCUS: TWO GROWTH PILLARS Growth Pillar 1: Build Value Through Solar Development + Utility Scale us + 18 .GW portfolio + Mid and advanced stage of development + Utility Scale and Rooftop Australia + 83 MW pipeline /2.5 MW operating + Early and mid stage of development Growth Pill
Slide 13: VivoPower USA: one of the largest US solar development pipelines
VIVOPOWER USA: ONE OF THE LARGEST US SOLAR DEVELOPMENT PIPELINES JV partnership to develop 1.8 GW of solar assets by 2021 Description ategic Highlights ss ncsalae Siiw oes oss) ‘Strong alignment with V Partner with complementary capabilities Risk mitigated capped investment prevents downside risk wi
Slide 14: VivoPower Australia: strong multi factor tailwinds underpin growth
VIVOPOWER AUSTRALIA: STRONG MULTI FACTOR TAILWINDS UNDERPIN GROWTH Diversification across utility-scale solar, commercial, industrial, government rooftop solar and power services business SOLAR DEVELOPMENT AUSTRALIA Utility Seale Solar + 83+ MW NSW development portfolio established + Experienced Aus
Slide 15: VivoPower: significant portfolio advancement in FY2018
VIVOPOWER: SIGNIFICANT PORTFOLIO ADVANCEMENT IN FY2018 STAGES OF DEVELOPMENT + EarlyStage = Land Control — Preparing for Permit and Transmission Applications + MidStage = Transmission Interconnection Study = Permitting = Resource Analysis, + Advanced Stage — Interconnection Agreement — Power Purchas
Slide 16: Value creation over development life cycle
VALUE CREATION OVER DEVELOPMENT LIFE CYCLE Inustrative Project Fair Market Value (S/W) $2057" VivoPower can create significant | wer rott equity value through the =f development cycle > Won aut Non-Recourse Project $0.00, Development Construction Operations VivoPower Limited capital at risk Recycle
Slide 17: VivoPower project development financial objectives
VIVOPOWER PROJECT DEVELOPMENT FINANCIAL OBJECTIVES NoSi NCAT 3 Sear Inv comerta cus (n8-4.876 Toe ar Teun [ourescioees 135 15-251 tym comered projets wa sou siee Revenues from project conversion (S per watt) *) $0.28 $0.15 - $0.25 Ravens nom projet comerson wa sis8-8a78 Annual Asset Management Reven
Slide 18: Key priorities for FY2019
KEY PRIORITIES FOR FY2019 = eee RECYCLE AGGRESSIVELY DRIVE DRIVE EFFICIENCY CAPITAL Us DEVELOPMENT GAINS PORTFOLIO Monetize non-core, Complete strategic Roll out lean ‘minority equity in NC review for 1.8 GW US management across. Projects for $11.5, solar portfolio group million? ‘Set monetization p
Slide 19: VivoPower
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VivoPower International — FY2018 Earnings Presentation on 6ix