Slide 1: Annual General Meeting - Managing Director's Presentation
VEEM Ltd For personal use only Annual General Meeting 19 November 2020 AGM Presentation 26 November 2019 Managing Director’s Presentation
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: For personal use only
For personal use only 1. 2020 Financial Results 2. Overview and outlook – Engineering Products and Services 3. Overview and outlook – Defence 4. Overview and outlook – Propellers 5. Overview and outlook – Gyrostabilizers 6. Summary Damen FCS Vessel 3
Slide 4: 1. 2020 Financial Results
1. 2020 Financial Results For personal use only 4
Slide 5: FY2020 Highlights
FY2020 Highlights For personal use only • Revenue of $44.4m in line with prior year ($45.0m) • Gyro sales tripled from 2019 to $4.8m with $4.1m of new orders received in the first 6 weeks of FY2021 • Normalised* EBITDA of $4.4m in line with 2019 Princess Yachts • Normalised* profit before tax up $0.
Slide 6: Results Summary
Results Summary For personal use only FY20 $ AASB 16 FY20 $ Statutory Entries JobKeeper Normalised FY19 $* Result Result Revenue 44.4 - - 44.4 45.0 EBITDA 7.5 (1.6) (1.5) 4.4 4.4 Profit before tax 3.2 0.5 (1.5) 2.2 2.1 NPAT 2.5 0.5 (1.1) 1.9 2.5 EPS (cents) 1.90 0.38 (0.84) 1.44 1.97 Net Assets 32.6
Slide 7: COVID-19
COVID-19 For personal use only Implemented enhanced hygiene measures, April 2020 revenue down triggering JobKeeper eliminated travel and other unnecessary exposures eligibility - $1.5m in FY2020 COVID-19 response team of five employed All boatbuilders are currently open and ordering up to 30 June 20
Slide 8: 2. Overview and outlook – Engineering Products and Services
2. Overview and outlook – Engineering Products and Services For personal use only 8
Slide 9: Engineering Products and Services
Engineering Products and Services For personal use only 2020 Highlights • First export order won for Timcast Forever Pipe • Another year of steady business, profit and cashflow Outlook • Continuing to bid on work across the country where utilisation of the Company’s foundry and precision machining c
Slide 10: 3. Overview and outlook – Defence
3. Overview and outlook – Defence For personal use only 10
Slide 11: Overview and outlook – Defence
3. Overview and outlook – Defence For personal use only 2020 Highlights • New defence customers in Babcock and McTaggart Scott secured with repeat orders likely • Registered VEEM with all new Naval Platforms • Provided test castings to Naval Group Australia • Secured refit valve contract • Contract
Slide 12: 4. Overview and outlook – Propulsion
4. Overview and outlook – Propulsion For personal use only 12
Slide 13: Overview and outlook – Propulsion
4. Overview and outlook – Propulsion For personal use only 2020 Highlights • Managed to work with all major clients through COVID-19 • Completed first prototype of new VEEM Scan electronic propeller scanning machine for evaluation • Completed new advanced VEEM prop nut design and put into production
Slide 14: 4. Overview and outlook – Gyrostabilization
4. Overview and outlook – Gyrostabilization For personal use only “Within ten years every new vessel built will have gyrostabilization” Mark Miocevich 2020
Slide 15: 2020 was the setup …
2020 was the setup … For personal use only Sales team in place All models designed and built (VG1000SD in 2020) New scalable production facility completed (up to $100m capacity PA) Global Supply chain operating VEEM’s new gyro assembly facility was opened in March 2020 by the Minister for De
Slide 16: Gyrostabilizer Highlights 2020
Gyrostabilizer Highlights 2020 For personal use only • Gyro sales tripled from 2019 to $4.8m with improved enquiries and leads into FY2021 • $4.1m of new orders received in the first 6 weeks of FY2021 incl. two VG1000SD gyros, one for Damen ships and one for a private owner • New gyro facility compl
Slide 17: VEEM Gyro Sales Growth
VEEM Gyro Sales Growth For personal use only 17 * Assumes AUD:USD exchange rate of 0.71.
Slide 18: Milestone Agreement with Damen Shipyards
Milestone Agreement with Damen Shipyards For personal use only • VEEM signed a three-year frame agreement with Damen Shipyards for the supply of VEEM Gyros • One of the Europe’s largest boatbuilders, Damen sells 175 vessels per year, including 20 FCS vessels, providing a major platform for increasin
Slide 19: Ready for World Domination
Ready for World Domination For personal use only • Adoption of the technology on larger vessels is expected to continue with shipbuilders offering a VEEM Gyro as an option and end-users increasing their demand for the enhanced experience that a more stable vessel provides • Superyacht market take-up
Slide 20: Summary
Summary For personal use only • VEEM has now cemented itself as the market leader in the production of large gyros. Sales and enquiries are continuing to grow at an accelerating rate • Market acceptance of the VEEM Gyro range has accelerated through a period of sea trials, demonstrations and subsequ
Slide 21: Contacts
ASX : VEE For personal use only Contacts Mark Miocevich David Rich Simon Hinsley Managing Director CFO Investor & Media Relations +61 8 9455 9355 +61 8 9455 9355 +61 401 809 653 simon@nwrcommunications.com.au @VEEM_Ltd VEEM_Ltd
Slide 22: 4. Additional Information
4. Additional Information For personal use only 22
Slide 23: Company Overview - The VEEM Board
Company Overview For personal use only The VEEM Board VEE Brad Miocevich David Rich ASX Code Chairman Chief Financial Officer Co-Company Secretary $0.70 Mark Miocevich Managing Director & CEO Tracy Caudwell Ian Barsden Finance and Admin Manager Share Price Non-Executive Director Co-Company Secretary
Slide 24: Corporate Summary
Corporate Summary For personal use only Corporate Snapshot 12-MONTH SHARE PRICE PERFORMANCE 1.2 $0.80 ASX Code VEE Millions $0.70 1 Share Price (18 Nov 2020) $0.70 $0.60 Market Capitalisation (18 Nov 2020) $91m 0.8 $0.50 Shares on Issue 130m 0.6 $0.40 $0.30 0.4 Substantial Shareholders $0.20 0.2 Mio