Veem Ltd. · ASX:VEE

Veem — FY2023 Earnings Presentation

22 slides from Veem's earnings presentation, Aug 24, 2023

  1. Slide 1: FY23 Results Presentation

    FY23 RESULTS PRESENTATION 24 AUGUST 2023 VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS

  2. Slide 2: Disclaimer

    DISCLAIMER THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR ADVERTISEMENT PAST PERFORMANCE This document, including the information contained in this disclaimer, is not a prospectus, product disclosure statement or other Past performance information in this document is given for illustration purposes o

  3. Slide 3: Agenda

    Agenda 1. FY23 Highlights 2. Executive Summary 3. Financial Results 4. Operational Performance 5. Outlook 6. Q&A 3

  4. Slide 4: FY23 Highlights

    FY23 Highlights Revenue Total Activity1 EBITDA2 $59.6m Revenue,+10% EBITDA and NPAT down $63.5m on the prior year due to raw materials and $10.0m +64% freight cost increases, general staff shortages and COVID impact on customers, suppliers and staff. EBITDA Margin2 EBIT2 NPAT2 16.8% +552bp $5.9m +18

  5. Slide 5: Executive Summary

    Executive Summary • VEEM’s revenue for the year was $59.6m (up 10% on FY22) with total activity (Sales + change in WIP) for FY23 of $63.5m. • EBITDA and NPAT were $10.0m and $4.1m, up 64% and 226% respectively on FY22. Cashflow from operations was $6.1m, up 143% on FY22. These amounts include a gove

  6. Slide 6: Financial Results

    FINANCIAL RESULTS VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS

  7. Slide 7: FY23 Result

    FY23 Result Profitability increase driven by propeller and defence businesses • Customer Work in Progress increased by $3.9m which, when added to revenue, demonstrates $63.4m of activity over FY23. FY23 FY22 % Change • Three new propeller machining centres, associated A$mil. A$mil. equipment and too

  8. Slide 8: Balance Sheet

    Balance Sheet Capital investment to drive future profitability FY23 FY22 % Change • The Company held cash on hand of $2.4m at 30 A$mil. A$mil. June 2023 (30 June 2022: $2.6m) and had an undrawn overdraft facility of $3.4m. Current Assets 35.0 31.7 11% • A $2m trade facility was set up to facilitate

  9. Slide 9: Cash Flow

    Cash Flow Solid cash flow from operations and investments in assets • Cashflow from operations was $6.1m (2022: FY23 FY22 $2.5m). The increase in WIP deferred some % Change A$mil. A$mil. receipts to the next period. • The investment of $5.2m is the portion of the $9.6m of capital and development exp

  10. Slide 10: Cash Flow

    Cash Flow Investing • Development costs: $3,413k • Property plant & equip. : $1,773k Statutory EBITDA $9,954k Less AASB 16 leases - $2,048k Adjusted EBITDA $7,906k Net Borrowings • Net bank borrowing proceeds $2,492k • Repayment of HPs $1,327k Working capital • Primarily increase in work in progress

  11. Slide 11: Operational Results

    OPERATIONAL RESULTS VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS

  12. Slide 12: Gyrostabilisers

    Gyrostabilisers • Revenue from gyros was $5m for the year with 2HFY23 being $3m, almost double 1HFY23. Orders on hand at 30 June were $11m including the Strategic Marine orders per below. • Exclusivity agreement signed with Strategic Marine for fast crew boats in SE Asia. Strategic have committed to

  13. Slide 13: Propulsion

    Propulsion • Three new propeller machining centres and associated equipment and tooling were installed and commissioned with May and June 2023 each recording a record for propeller sales. • With the increased production VEEM has put in place a specific $2m propeller trade facility to finance the tra

  14. Slide 14: Defence

    Defence • VEEM continues to be a reliable, local source of highly sophisticated critical components for the Collins Class submarines. Revenue from the submarine program was $12.3m for the year. • VEEM is currently manufacturing blades and hubs for the Hunter Class Frigate Program (HCFP) demonstrator

  15. Slide 15: Engineering Products and Services

    Engineering Products and Services • VEEM’s hollow bar product revenue for FY23 was $6.2m which is an 11% increase over FY22 due to strong demand and increased capacity. • Delivery commenced for the Latrobe Magnesium’s Latrobe Valley Stage 1 Demonstration Plant which will continue over the next three

  16. Slide 16: FY23 Capital & Development Investment

    FY23 Capital & Development Investment • FY23 saw a total of $9.6m of investment in plant and equipment and engineering development including: • Three new propeller machining centres, associated equipment and tooling • Large 3D printer • Large laser Scanner • Product Development including gyro engine

  17. Slide 17: Outlook

    OUTLOOK VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS

  18. Slide 18: Outlook

    Outlook Gyrostabilisers: • Strategic Marine agreement, recent leads and enquiries highlight the commercial market for gyrostabilisers is becoming better educated at the operational, HSE and commercial benefits of gyros for crew transfers. • With continued investment into marketing, smaller models an

  19. Slide 19: Q&A

    Q&A 19

  20. Slide 20: Appendices

    VEEM LTD INVESTOR PRESENTATION MARCH 2020 APPENDICES PRINCESS YACHTS

  21. Slide 21: Corporate Overview

    Corporate Overview Corporate Snapshot VEE Share Price History 0.8 10 ASX Code VEE Vol. - Million 9 0.7 Share Price (23 August 2023) $0.64 8 0.6 7 Market Capitalisation (23 August 2023) $87m 0.5 6 Shares on Issue 136m 0.4 5 4 0.3 3 Substantial Shareholders % 0.2 2 0.1 1 Miocevich Family 50.20% 0 0 Pe

  22. Slide 22: Contact VEEM Ltd

    This ASX announcement was authorised for release by VEEM Managing Director, Mark Miocevich. Contact VEEM LTD INVESTOR PRESENTATION Mark Miocevich David Rich Jonas Fitzgerald Managing Director CFO MARCH Investor 2020 Relations +61 8 9455 9355 +61 8 9455 9355 jonas.fitzgerald@lgcapital.com.au +61 427

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