Slide 1: 1HFY24 Half-Year Results Presentation
1HFY24 HALF-YEAR RESULTS PRESENTATION 22 FEBRUARY 2024 VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS
Slide 2: Disclaimer
DISCLAIMER THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR ADVERTISEMENT FORWARD-LOOKING STATEMENTS This document, including the information contained in this disclaimer, is not a prospectus, product disclosure statement or other Certain statements, beliefs and opinions contained in this document, par
Slide 3: Agenda
Agenda 1. 1HFY24 Highlights 2. Executive Summary 3. Financial Results 4. Operational Performance 5. Outlook 6. Q&A 3
Slide 4: 1HFY24 Highlights
1HFY24 Highlights Revenue Total Activity1 EBITDA2 $37.5m Revenue,+37% EBITDA and NPAT down $39.7m on the prior year due to raw materials and $6.9m +65% freight cost increases, general staff shortages and COVID impact on customers, suppliers and staff. EBITDA Margin2 EBIT2 NPAT2 18.4% +310bps $4.6m +
Slide 5: Executive Summary
Executive Summary • VEEM’s revenue for the half-year was $37.5m (up 37% on 1HFY23) with total activity (Sales + change in WIP) of $39.7m (up 24% of 1HFY23) on the back of increased job hours. • EBITDA and NPAT were $6.9m and $3.5m, up 65% and 92% respectively on 1HFY23. Cashflow from operations was
Slide 6: Financial Results
FINANCIAL RESULTS VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS
Slide 7: 1HFY23 Result
1HFY23 Result Profitability increase driven by propeller, gyro and defence businesses • Work in Progress increased by $2.2m which, when added to revenue, demonstrates $39.7m of activity for 1HFY24. 1HFY24 1HFY23 % Change • Increased job hours and productivity. A$mil. A$mil. • The increased propeller
Slide 8: Balance Sheet
Balance Sheet Reduction in Borrowings 31 Dec 2023 30 June 2023 % Change • The Company held cash on hand of $0.6m at 31 A$mil. A$mil. Dec 2023 (30 June 2023: $2.4m) with an undrawn overdraft facility of $3.4m and $1.4m undrawn on Current Assets 37.6 35.0 7% the trade facility. Non-Current Assets 56.2
Slide 9: Cash Flow
Cash Flow Solid cash flow from operations and debt repayment • Cashflow from operations was $4.4m (1HFY23: 1HFY24 1HFY23 $1.4m) which was helped by the increased gyro % Change A$mil. A$mil. sales and orders which have early milestone payments. • $1.6m of bank debt and $0.9m of HPs were Cash flow fro
Slide 10: Cash Flow
Cash Flow Investing • Development costs (Intangibles) $1,410k • Property plant & equip. $640k *Note at 31 December 2023 there was an undrawn overdraft of $3.4m and undrawn trade facilities of $1.4m. 10
Slide 11: Operational Performance
OPERATIONAL PERFORMANCE VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS
Slide 12: Gyrostabilisers
Gyrostabilisers • Revenue from gyros was $5m for the half-year, 200% up on 1HFY23. Orders on hand at 30 June were $9.2m including $6.2m of Strategic Marine orders per below. • Strategic Marine accelerated their orders for 12 gyros under the exclusivity agreement for fast crew boats in SE Asia from t
Slide 13: Propulsion
Propulsion • The increased propeller capacity installed late in FY23 was utilised early in the half to reduce the order backlog in propellers. Subsequently propulsion sales have normalised with revenue of $16.5m for the half, up 41% on 1HFY23 and 30% over 2HFY23. • During the period VEEM acquired fu
Slide 14: Propulsion – SHARROW by VEEM
Propulsion – SHARROW by VEEM • The Sharrow Propeller was invented by Gregory Sharrow in 2012. Its design has solved the most basic problem of rotary propulsion. Specifically, tip cavitation and vortices have been eliminated or significantly reduced, offering incredible performance gains over traditi
Slide 15: 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 $6.2m for the half-year (up 5% on 1HFY23) with overall defence revenue of $8.6m (up 7% on 1HFY23). • VEEM is currently manufact
Slide 16: Engineering Products and Services
Engineering Products and Services • VEEM’s hollow bar product revenue for 1HFY24 was $3.3m which is an 36% increase over 1HFY23 due to strong demand and increased capacity. • Delivery continued for the Latrobe Magnesium’s Latrobe Valley Stage 1 Demonstration Plant which will continue over the next t
Slide 17: Outlook
OUTLOOK VEEM LTD INVESTOR PRESENTATION MARCH 2020 PRINCESS YACHTS
Slide 18: Outlook – Marine Products
Outlook – Marine Products Gyrostabilisers: • Sales and orders from Strategic Marine and others as well as recent leads and enquiries highlight that the commercial market for gyrostabilisers is now understanding the value a VEEM gyro can deliver in terms of operational, HSE and commercial benefits. •
Slide 19: Outlook – Non-Marine Products
Outlook – Non-Marine Products Defence: • Defence revenue expected to remain strong with deliveries under the Collins Class submarine full cycle docking to continue for the rest of FY24. • Other defence work for a number of different prime contractors, including Austal, is also expected to continue w
Slide 20: Q&A
Q&A 20
Slide 21: Appendices
VEEM LTD INVESTOR PRESENTATION MARCH 2020 APPENDICES PRINCESS YACHTS
Slide 22: Corporate Overview
Corporate Overview Corporate Snapshot VEE Share Price History 1.4 10 ASX Code VEE Vol. - Million 9 1.2 Share Price (21 February 2024) $1.20 8 1 7 Market Capitalisation (21 February 2024) $163m 6 0.8 Shares on Issue 136m 5 0.6 4 0.4 3 Substantial Shareholders % 2 0.2 1 Miocevich Family 50.20% 0 0 Per
Slide 23: Contact VEEM Ltd
This ASX announcement was authorised for release by the Board of VEEM Limited. 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 +61 427 104 488 @VEEM