Slide 1: 1H14 – now at inflection
For personal use only 1H14 – now at inflection September 2014
Slide 2: Now at growth inflection point
For personal use only Now at growth inflection point 2
Slide 3: Generating positive cash flow and profit
Generating positive cash flow and profit For personal use only Achieving growth across all key metrics • Strong growth and production, up 33% – 36,705 units produced (1H13: 27,515) • Revenue up 62% to $15.9m • EBITDA of $574k (1H13: loss of $145k) • Normalised NPAT of $705k (1H13: loss of $554k) • D
Slide 4: Operational initiatives are delivering
Operational initiatives are delivering For personal use only Multi-faceted growth initiatives executed • Expanded China distribution footprint – 16 company owned retail stores – >10 distributor/dealer relationships • Continued growth in new international markets – Brazil, Indonesia and Vietnam • DHL
Slide 5: Generating cash and profits
For personal use only Generating cash and profits 5
Slide 6: Growth across key financial metrics
Growth across key financial metrics For personal use only Substantial turnaround as company achieves scale Revenue EBITDA 18 2.0 $m 15.9 $m 16 15.4 1.5 1.4 14 12 1.0 9.8 0.6 10 8 0.5 6 5.2 4.6 0.0 4 -0.1 2 -0.5 0 -0.6 -1.0 -0.8 1H12 1H13 1H14 2H12 2H13 1H12 1H13 1H14 2H12 2H13 • 1H14 revenue increas
Slide 7: Growth across all key financial metrics
Growth across all key financial metrics For personal use only Generating profits and cash NPAT Operating Cash Flows 1.5 0.5 0.2 $m 0.1 $m 1.0 1.0 0.7 0 0.5 -0.5 -1 0.0 -1.5 -1.1 -0.5 -2 -0.6 -1.0 -2.5 -2.1 -1.0 -1.5 -1.2 -3 -2.7 * 1H12 1H13 1H14 2H12 2H13 1H12 1H13 1H14 2H12 2H13 *Normalised NPAT •
Slide 8: Strong balance sheet
Strong balance sheet For personal use only Key balance sheet items • Cash down to $2.8m due mainly to (A$m) 31 Dec 13 30 Jun 14 repayment of borrowings to reduce Cash 4.4 2.8 interest expenses Other assets 20.3 20.8 • Inventory up $0.8m to $6.0m due to increased production levels to Total assets 24.
Slide 9: Exciting growth ahead
For personal use only Exciting growth ahead 9
Slide 10: Production and sales growth
Production and sales growth For personal use only Moving through scale inflection point • Production expected to increase Production to >85,000 units in 2014 and 40,000 >150,000 units in 2015 35,000 • Estimated production capacity of c300,000 scooters per annum 30,000 13,609 13,177 (depending on mod
Slide 11: Ability to scale without much capex
Ability to scale without much capex For personal use only Production facility currently only c20% utilised • 30,000sqm state of the art manufacturing facility in Nanjing, China - wholly owned, fully paid for, equipped plant in key industrial zone - estimated production capacity of c300,000 scooters
Slide 12: Growing distribution footprint
Growing distribution footprint For personal use only Currently 16 company owned retail stores… Jun 13 1 Dec 13 10 Jun 14 16 0 5 10 15 20 Plus > 10 Chinese distributors and dealers 12
Slide 13: Operating in multiple growth markets
Operating in multiple growth markets For personal use only Existing and new markets China Brazil Europe Indonesia Malaysia Own retail stores and Correios Italy PT Garansindo Malaysian Original distributors • Vmoto received initial • Vmoto received and Technologies Equipment orders for 150 units orde
Slide 14: Operating in multiple growth markets
Operating in multiple growth markets For personal use only Existing and new markets Taiwan Hong Kong Vietnam Others Others Kentfa Advanced Hong Kong Euro Ebike Mexico Vmoto electric scooters Technology Corp • 2 sample electric • Exclusive distribution • Sample orders were shipped to • Vmoto recently
Slide 15: Exciting outlook for 2H14 and beyond
Exciting outlook for 2H14 and beyond For personal use only There’s a lot more growth to come from China operations… • Strategic position in China provides access to world’s largest two wheel vehicle market • China is largest global market for electric two wheel vehicles (incl. bicycles) – 30m units
Slide 16: Exciting outlook for 2H14 and beyond
Exciting outlook for 2H14 and beyond For personal use only Also have multiple international growth opportunities • Navigant Research forecasts that global e-scooter sales will grow from 12m vehicles in 2013 to 18m in 20201 • Vmoto already at forefront of this market with global network of customers,
Slide 17: Summary
Summary For personal use only An exciting period lies ahead 1H14 2H14 and beyond Growig International Increased Increased revenues and Distributor sales distribution earnings agreements Reached Leverage Collaborations, inflection Foundations scale tenders & joint ventures point in place Product Impr
Slide 18: Global cooling, one kilometre at a time
For personal use only Global cooling, one kilometre at a time
Slide 19: Appendices
For personal use only Appendices 19
Slide 20: Strong competitive position in world market
Strong competitive position in world market For personal use only No. 2 global vendor and clear contender to be leader • Global electric scooter market has developed two distinct vendors: - High-powered , higher priced scooters in North / South America and Europe - Those with cost structures suitabl
Slide 21: Key customers
Key customers For personal use only Name Description PowerEagle (China) Chinese company based in Shanghai, China and specialises in electric bicycles/scooters/ motorcycles. Brand name well known in China for product development and quality control E-Tropolis (Germany) Germany electric vehicle compan
Slide 22: Vmoto in China
For personal use only Vmoto in China 22
Slide 23: Vmoto’s evolution leveraging new technology
Vmoto’s evolution leveraging new technology For personal use only 2012 2013 2009 2010 Vmoto launches With many lucrative Vmoto acquires Following the E-Max its own 1st two supply agreements E-Max, a German integration, scale wheel electric already secured, electric scooter production builds at scoot
Slide 24: Patented technology and IP
Patented technology and IP For personal use only Market leading technologies that are transferrable • Patented technology and IP - Through acquisition of E-Max, Vmoto is producing market leading technology • Market differentiation based on innovative and functional design features - High quality con
Slide 25: Batteries and charging
Batteries and charging For personal use only • Currently silicone & lithium battery packs used - Modular design - High energy density - Intelligent cooling system • Moveable battery packs • On board chargers and smart chargers • Average range – 45km to 140km • Average charging time – three to five h
Slide 26: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE The information contained in this presentation is current as at 29 August 2014 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 presen
Slide 27: 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 27