Vivopower Plc · NASDAQ:VIVO
Vivopower — VivoPower International — Investor Presentation (August 2017)
19 slides from Vivopower's investor presentation, Aug 31, 2017
Slide 1: Investor Presentation, 31 August 2017
31 August 2017 INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This presentation contains "forward-looking statements“ relating to VivoPower 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: VivoPower Snapshot
VIVOPOWER SNAPSHOT WHO WE ARE WHAT WE DO HOW WE EXECUTE OUR ASPIRATION NASDAQ listed (VVPR) BUILD Low risk, projects asset light model Data-driven Solar power energy services platform High return, TRANSFER capital efficient Commercial, to investors approach Industrial & Experienced government custom
Slide 4: Global Footprint with Strong Equity Sponsorship
GLOBAL FOOTPRINT WITH STRONG EQUITY SPONSORSHIP Global Platform in Key Markets Strong FY17 Performance & Milestones • Established global platform and management team LONDON SAN FRANCISCO NEW YORK • Achieved NASDAQ listing DALLAS • Delivered $18.9M EBITDA SINGAPORE • Secured exclusive 1.8 GW US devel
Slide 5: Strong Experienced Leadership Team
STRONG EXPERIENCED LEADERSHIP TEAM Dr. Philip Comberg Kevin Chin Chief Executive Officer Non-Exec Chairman • Extensive global management and investment experience, building solar portfolios • Founder and Executive Chairman of VivoPower’s in multiple jurisdictions and leading fast growing companies,
Slide 6: Build Transfer Operate: Value Added Approach to Market
VALUE ADDED APPROACH TO MARKET BUILD TRANSFER PROJECTS TO INVESTORS • Acquire projects from developers at a significantly lower cost than buying operating assets • Sell to investors prior to building Differentiation: Differentiation: • Deep relationships in fragmented global • Deep relationships and
Slide 7: BTO Model Captures Upside with Low Capital Investment
BTO MODEL CAPTURES UPSIDE WITH LOW CAPITAL INVESTMENT DEVELOPMENT BUILD/TRANSFER OPERATE RISK VALUE INFLECTION POINT Vivopower secures BTO off-take partner before committing capital, locking in profit Development Pre-construction Construction Operations • High risk • No development risk • Profit is
Slide 8: Case Study 1: BTO of 91MW Ground Mount Solar Assets
CASE STUDY 1: BTO OF 91MW GROUND MOUNT SOLAR ASSETS Successfully built power facilities for customers in North Carolina TRANSACTION SUMMARY NC31 & NC47 New Energy Solar Fund BTO US Bancorp Partners Starbucks Corporation • VivoPower executed two BTO transactions during FY 2017 • Total capacity of 91M
Slide 9: Case Study 2: BTO of Rooftop Asset Portfolio
CASE STUDY 2: BTO OF ROOFTOP ASSET PORTFOLIO Alliance agreement with strategic partner ReNu Energy to transfer 5MW solar projects TRANSACTION SUMMARY 67 OPERATIONAL ROOF TOP SOLAR PROJECTS Kettridges (stock feed producer) Amaroo (public school) Partner ReNu Energy (ASX: RNE) of Australia • Agreement
Slide 10: Case Study 3: US Joint Development Agreement
CASE STUDY 3: US JOINT DEVELOPMENT AGREEMENT JV partnership to develop solar assets worth $2B by 2020 TRANSACTION SUMMARY STRATEGIC HIGHLIGHTS ✓ Strong alignment with JV Partner with complementary capabilities JV Partner Innovative Solar Systems (ISS) ✓ Risk mitigated investment – capped investment
Slide 11: Aevitas Provides a Captive Customer Base to Convert to Solar
AEVITAS PROVIDES A CAPTIVE CUSTOMER BASE TO CONVERT TO SOLAR LONGSTANDING TRUSTED POWER SERVICES PROVIDER WITH HIGH LEVEL OF RECURRING REVENUES • Power Generation & Distribution: includes the design, supply, installation and maintenance of standby generators , control systems and switchboards • Elec
Slide 12: A Well Defined Growth Strategy
A WELL DEFINED GROWTH STRATEGY REVENUE 2016 2017 2018 2019 … STACK ENERGY Recurring revenues from energy services including storage, ENERGY SERVICES demand response management and data driven technology services SERVICES Recurring revenues from minority ownership in solar power OWN OWN plants underp
Slide 13: Key Metrics Indicate Continued Growth
KEY METRICS INDICATE CONTINUED GROWTH FY17 FY18 COMMENTARY (US$ in millions) Actual Guidance Pipeline (MW)(1) 2,000 2,000 – 2,500 (1) Over 50 Identified projects which are subject to term sheet or letter of intent, pending diligence and financing. (2) Projects for which a contract to sell to a third
Slide 14: Ample Qualified Pipeline
AMPLE QUALIFIED PIPELINE… 38000.00% Near-term Focus on US Market 36000.00% Vast Opportunities Remain Untapped 34000.00% 32000.00% Qualified Projects by Geography(1) Estimated Pipeline Conversion 30000.00% (2.1 GW) 28000.00% 26000.00% Estimated pipeline conversion rate required to achieve forecast(2)
Slide 15: That Underpins a Strong Growth Outlook
… THAT UNDERPINS A STRONG GROWTH OUTLOOK Forecast Revenue 1 (US$m) Forecast Adjusted EBITDA2 (US$m) Revenue CAGR: 48% Adjusted EBITDA CAGR: 1417% 22-25 56-61 52.5 18.9 27.1 0.1 2016A 2017A 2018E 2016A 2017A 2018E (1) Represents the full year effect of revenue from Vivopower Pty Limited and Aevitas G
Slide 16: Diversified Revenue Profile
DIVERSIFIED REVENUE PROFILE FY17 FY17 FY18 COMMENTARY US$ millions Actual Annualised1 Forecast (2) Build & Transfer Revenue 25.0 25.0 30-40 BTO sales revenue is recognised on a percentage completion basis in line with Own & Operate 0.1 0.3 ~1 IFRS 15 and relates to the completion of 2 projects in No
Slide 17: Reconciliation of Earnings Metrics to IFRS Financial Measures
RECONCILIATION OF EARNINGS METRICS TO IFRS FINANCIAL MEASURES Statement of Income Reconciliation FY17 US$ millions Actual Net income 5.6 Add back: Taxation 5.3 One-off non-recurring costs (1) 0.9 Transaction costs (2) 5.8 Interest income and expense 0.6 Amortization of identified intangibles recogni
Slide 18: Investor Value Proposition
INVESTOR VALUE PROPOSITION Declining costs, political support and a groundswell of boardroom and community support for Strong industry tailwinds clean power accelerates take-up of solar and renewable power driving sustainable growth Business model, product and service offering is readily scalable La
Slide 19: VivoPower
9 vivopower
VivoPower International — Investor Presentation (August 2017) on 6ix