Slide 1: Presentation June 2015
For personal use only Presentation June 2015
Slide 2: Company Overview
Company Overview For personal use only A significant player in the burgeoning electric vehicle market • Profitable and cash generative electric vehicle manufacturer • Growing unit sales of premium branded and OEM products • Two-wheel electric vehicle sales increasing year on year in China and intern
Slide 3: Corporate structure
Corporate structure For personal use only Charles Chen – Managing Director (China) - Ex-Honda Sundiro Management, 18 years experience in motor scooter business - Responsible for day to day business operations in China Ivan Teo – Finance Director (China) - Qualified Chartered Accountant – Western and
Slide 4: Capital structure
Capital structure For personal use only Capital Structure ASX / AIM code VMT Fully Paid Ordinary Shares 132,825,670 Share price (at 5 June 50c / 23.50p 2015) Options 1,785,000 Market Capitalisation $66.4m / £31.2m Performance Rights 2,933,334 Cash (as at 31 Dec 2014) $3.9m Broker Coverage Date Initi
Slide 5: 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 Acquisition of Haiyong, a Earnings growing faster prominent EV controller than revenues business Formation of a JV to enter three and
Slide 6: 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 1.50 Growth over period: 42.92% 1.00 Growth over period: 1.53% 0.50 0.00 1-Jul-12 1-Jul-13 1-Jul-14 1-Jan-12 1-Apr-12 1-Oct-12 1-Jan-13
Slide 7: Strong sustainable growth
Strong sustainable growth For personal use only Continuing sustainable growth in 2015 and beyond Revenue Statutory EBITDA 80 10.0 68.7 $m $m 70 8.0 8.0 60 6.0 50 45.1 6.0 40 4.0 30 25.2 2.0 1.3 1.1 20 9.8 0.0 10 - -2.0 -1.3 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 • Revenue grew by 79% in FY14 • Stat
Slide 8: Strong sustainable growth: generating growing profits and cash
Strong sustainable growth For personal use only Generating growing profits and cash Statutory NPAT Operating Cash Flows 7.5 7.0 1.0 0.7 $m $m 6.0 0.0 5.0 4.5 -1.0 3.0 -2.0 1.5 0.9 -2.0 0.4 -3.0 0.0 -1.5 -4.0 -3.8 -3.0 -2.2 -5.0 FY12 FY13 FY14 FY15 FY12 FY13 FY14 • Statutory NPAT of A$0.9m, underlyin
Slide 9: Strong balance sheet
Strong balance sheet For personal use only Key balance sheet items (A$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 10: Production and sales growth
Production and sales growth For personal use only Production and sales continues to grow as the company expands 100,000 • Production and sales expected to 93,350 90,000 increase to >93,000 units in 2015 80,000 25,332 • Current production mostly 76,208 consists of two-wheel vehicles 70,000 62,774 28,
Slide 11: 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 11
Slide 12: Expanding into high margin markets
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 13: 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 14: 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 Haiyong Key customers: focused on producing controllers, a key component in electric vehicle driving systems • The acquisition gives
Slide 15: 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 16: 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 focus on design, manufacture and distribution of electric three- and four-wheel vehicles for Chinese domest
Slide 17: 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 18: Future strategy: Growth in China B2C market
Future strategy For personal use only Growth in China: B2C market • Expansion in China – targeting 300 outlets by 2017 • Launch in China online sales platform and offline logistics and service from 2016 • Chinese demand for electric two-wheel vehicles has gradually shifted to e-scooters • Vmoto posi
Slide 19: Future strategy: Growth in China B2B market
Future strategy For personal use only Growth in China: B2B market • Massive potential for growth in China’s B2B market • Launch international delivery electric scooter in China from 2016 • Target large and famous B2B customers in China • Providing complete and customisable electric vehicle solutions
Slide 20: Future strategy: Growth in International B2C market
Future strategy For personal use only Growth in International: B2C market • Asia – Increase unit sales to existing distributors and identify new distributors, strategic partners and importers • Europe – Increasing unit sales to Europe, benefiting from government policies including subsidies for buyi
Slide 21: Future strategy: Growth in International B2B market
Future strategy For personal use only Growth in International: B2B market • Expand existing and target new B2B customers that have needs to replace petrol fleet with electric fleet eg KFC, McDonalds, DHL, TNT, Dominos Pizza • Partner with B2B customers for innovative services including e-scooter sha
Slide 22: Potential significant future projects: Case 1 e-scooter sharing
Potential significant future projects For personal use only Case 1: Electric scooter sharing project • Partner with B2B customers for shared electric fleets for inner- city transportation to solve congested traffic, air pollution, overcrowded public transport and parking issues (e-scooter sharing pr
Slide 23: Potential significant future projects: Case 2 battery exchange station
Potential significant future projects For personal use only Case 2: Battery Exchange Station Project • Partner with B2B customers for battery exchange station project to overcome long battery charging time and limited travel distance range for electric vehicle users • Cooperate with battery exchange
Slide 24: 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 25: Contact
Contact For personal use only • Charles Chen, Managing Director – +61 (8) 9226 3865 – charles@vmoto.com.cn • Olly Cairns, Executive Director – +61 (8) 9226 3865 – olly@vmoto.com 25
Slide 26: Reconciliation of 2014 statutory and underlying EBITDA and NPAT
Reconciliation of 2014 statutory and underlying EBITDA and NPAT For personal use only Reconciliation of Underlying EBITDA FY14 Reconciliation of Underlying NPAT FY14 $m $m Sta tutory NPAT 0.9 Sta tutory NPAT 0.9 Add: Add: One off expenses Depreci a ti on 0.5 Impa i rment on i nventori es 1.5 Interes
Slide 27: Vmoto's evolution
Vmoto’s evolution For personal use only 2010 – 2012 2013 2014 Vmoto adds to lucrative Vmoto launches its Vmoto extends brand reach 2009 supply agreements already own two wheel electric internationally and acquires Nanjing Vmoto completes manufacturing secured, winning scooters in China and Haiyong.
Slide 28: Vmoto's product offering
Vmoto’s product offering For personal use only A wide variety of models with a new model coming in 2015 • Two-wheel electric vehicles priced between A$700 and A$3,500 • Vehicles come with either a lead acid battery or a lithium battery, depending on model 28
Slide 29: Key Advantages of Vmoto Product
Key Advantages of Vmoto Product For personal use only Front Chic European Water-proof LCD carrier Design speedometer Average High charging time of performance 3-5 hours (up to 80km/h) Reverse Function Long battery life Long distance range Large capacity (up to 1,000 recharges) (up to 140km) rear box
Slide 30: China's Two-Wheel Electric Vehicle Market - Overview
China’s Two-Wheel Electric Vehicle Market - Overview For personal use only • Two-wheel electric vehicle market in China – The two-wheel electric vehicle market consists of electric bicycles, electric scooters and electric motorcycles – Currently, there are more than 140 million electric two-wheel ve
Slide 31: Vmoto
For personal use only Vmoto 31
Slide 32: Vmoto
For personal use only Vmoto 32
Slide 33: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE The information contained in this presentation is current as at 5 June 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