Veem Ltd. · ASX:VEE
Veem — Shareholder Meeting (November 2023)
21 slides from Veem's shareholder meeting presentation, Nov 22, 2023
Slide 1: Managing Director's Presentation
VEEM Ltd Annual General Meeting 22 November 2023 AGM Presentation 26 November 2019 Managing Director’s Presentation
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR ADVERTISEMENT This document, including the information contained in this disclaimer, is not a prospectus, product disclosure statement or other disclosure document and does not constitute, or form any part of, an offer to sell, or a solicitati
Slide 3: Agenda
1. Management Introductions 2. FY23 Review 3. Engineering Products and Services 4. Defence 5. Gyrostabilizers 6. Propulsion 7. Trading Update 8. Outlook 9. Q & A 10. Appendices 2
Slide 4: Management Introductions
Management Introductions • Trevor Raman – Chief Operating Officer • Tino Kapfumo – Finance Manager • Tony Elms – Chief Technical Officer - Marine 3
Slide 5: FY23 Summary
FY23 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 $6.1m, up 143% on FY22. These amounts included a governme
Slide 6: FY23 Financial Results
FY23 Financial Results FY23 FY22 % Change A$mil. A$mil. Revenue 59.6 54.2 10% EBITDA 10.0 6.1 64% Profit before Tax 4.9 1.4 249% Net Profit after Tax (NPAT) 4.1 1.3 226% Earnings Per Share (EPS) (cents) 3.03 0.93 226% Cash Flow From Operations 6.1 2.5 143% Net Assets 46.8 43.6 7% 5
Slide 7: Engineering Products and Services
Engineering Products and Services FY23 Highlights • 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 ove
Slide 8: Defence - FY23 Review
Defence - FY23 Review • 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. • Currently manufacturing blades and hubs for the Hunter Class Frigate Program (HCFP) demons
Slide 9: Defence - Outlook
Defence - Outlook • Defence revenue expected to remain strong with deliveries under the next Collins Class submarine full cycle docking to commence in 2HFY24. • Other defence work for a number of different prime contractors, including Austal, is also expected to continue with the building of patrol
Slide 10: Gyrostabilizer - FY23 Overview
Gyrostabilizer - FY23 Overview • 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 co
Slide 11: Gyro Status and Outlook
Gyro Status and Outlook • Strategic Marine has accelerated delivery of their 12 gyros on order into FY24. • Current orders on hand amount to US$6.8m ($10.7m) with $2m sold to 31 October 2023. FY24 gyro sales expected to be at least $10m – double that of FY23. • Tony Elms appointed as Chief Technical
Slide 12: Propulsion FY23 Review
Propulsion FY23 Review • 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. • Specific $2m propeller trade facility in place for propellers. • In addition to the machining cent
Slide 13: Propulsion – SHARROW by VEEM Agreement
Propulsion – SHARROW by VEEM Agreement • Agreement signed with Sharrow for VEEM and Sharrow to partner together to design and then VEEM to exclusively manufacture and sell Sharrow design propellers worldwide for inboard powered vessels. • Sharrow’s award-winning design has made a spectacular impact
Slide 14: Propulsion Outlook
Propulsion Outlook Outlook • Global demand for VEEM’s propellers is expected to remain steady, with the adoption of the SHARROW by VEEM propellers by VEEM’s customers to generate an uplift in revenue. • Testing of the SHARROW by VEEM design is underway and is expected to be completed end-Jan 2024. •
Slide 15: Trading Update
Trading Update • The first four months of FY24 have been strong for VEEM in terms of hours worked, revenue, EBITDA and NPAT - continuing on from the last few months of FY23. • Even with the non-recurring costs of the SHARROW by VEEM project, VEEM expects to report a strong result for 1HFY24 with EBI
Slide 16: Outlook
Outlook • Traditional engineering business to remain strong with solid margins with current labour availability being maintained. • Defence work to continue to be a strong contributor to revenue and profit. The Hunter Class demonstrator hub and blades to be delivered 1HFY24. • Propeller sales to rem
Slide 17: Q&A
Q&A
Slide 18: Contacts
ASX : VEE Contacts Mark Miocevich David Rich Jonas Fitzgerald Managing Director CFO IR Consultant, Lancaster Grove Capital +61 8 9455 9355 +61 8 9455 9355 +61 427 104 488 Jonas.fitzgerald@lgcapital.com.au @VEEM_Ltd VEEM_Ltd
Slide 19: Appendices
Appendices
Slide 20: Corporate Summary
Corporate Summary Corporate Snapshot VEE Share Price History $0.80 10 Vol. - Million ASX Code VEE 9 $0.70 8 Share Price (21 Nov 2023) $0.695 $0.60 7 Market Capitalisation (21 Nov 2023) $94m $0.50 6 $0.40 5 Shares on Issue 135.7m 4 $0.30 3 $0.20 2 Substantial Shareholders $0.10 1 Miocevich Family 50.
Slide 21: VEEM Board
VEEM Board Brad Miocevich Chairman Mark Miocevich Managing Director & CEO Ian Barsden Non-Executive Director Mike Bailey Independent Non-Executive Director Peter Torre Independent Non-Executive Director David Rich Chief Financial Officer & Company Secretary 20