Financial Performance - Revenue from contracts with customers decreased to $22,448,000 in 2022 from $23,975,000 in 2021, representing a decline of approximately 6.4%[25] - Gross profit significantly dropped to $259,000 in 2022 compared to $4,361,000 in 2021, indicating a decline of approximately 94.1%[25] - Operating loss widened to $14,038,000 in 2022 from a loss of $5,014,000 in 2021, reflecting an increase in losses of approximately 179.5%[25] - Total comprehensive loss for 2022 was $20,526,000, compared to $6,357,000 in 2021, marking an increase of approximately 223.5%[26] - Basic earnings per share decreased to $(1.04) in 2022 from $(0.49) in 2021, indicating a decline of approximately 112.2%[26] - Cash and cash equivalents decreased to $1,285,000 in 2022 from $8,604,000 in 2021, a decline of approximately 85.1%[26] - Current ratio fell to 0.92 in 2022 from 1.79 in 2021, indicating a decrease in liquidity[26] - Debt increased to $28,561,000 in 2022 from $23,091,000 in 2021, representing an increase of approximately 23.5%[26] - The company experienced losses of $21.6 million, $8.0 million, and $5.1 million for the years ended June 30, 2022, 2021, and 2020, respectively[74] - As of June 30, 2022, the company had an aggregate of $28.6 million in debt obligations, impacting its ability to service debt and fund operations[78] Strategic Initiatives - The company anticipates significant investments in operational and capital expenditures to support its new SES strategy, which includes electric vehicles and electrical services for the solar power market[30] - The company has pivoted its strategy to focus on delivering end-to-end sustainable energy solutions, including electric vehicles and electrical services, to help corporate customers achieve net zero carbon goals[47] - The company plans to expand significantly in the commercial electric vehicle market, targeting sectors such as mining, infrastructure, and utilities, which may lead to increased operational and capital expenditures impacting profitability[50] - The company has signed distribution agreements for Tembo LEV conversion kits in multiple regions, including North America and Europe, and is partnering with Toyota for electrification solutions[52] - The acceptance of Tembo's zero-emission vehicles is crucial for future growth, particularly in the mining, infrastructure, and utilities sectors[53] - The company is targeting significant growth across its businesses over the next 5 years, driven by the electrification of fleet vehicles and the adoption of net zero carbon goals[80] - VivoPower's Sustainable Energy Solutions segment is expected to see significant growth, necessitating investment in people and technology[217] Market and Competitive Landscape - The company faces competition from larger firms with more resources, which could adversely affect its market position and financial results[35] - The company faces risks related to warranty claims that could exceed reserves, potentially leading to substantial expenses for repairs or replacements[45] - The new SES strategy may involve significant investment and strain on financial and management resources, with potential adverse effects on business results if growth targets are not met[48] - The company may incur operating losses if it fails to scale up the SES business segment effectively, impacting cash flows and financial condition[67] - The company may be required to write down the carrying value of its investment in Tembo if its performance does not meet expectations, which could materially affect financial results[59] Operational Challenges - The company has been materially adversely affected by COVID-19, with disruptions in operations across key markets including the U.K., Australia, the Netherlands, and the U.S.[102] - Supply chain disruptions due to COVID-19 have resulted in increased costs and delays in fulfilling customer orders, negatively impacting revenues[103] - The company may face substantial liquidity problems and might be required to dispose of material assets to meet obligations[79] - The company may face challenges in attracting and retaining skilled personnel, particularly in the Netherlands, which could hinder growth objectives[164][165] - Litigation and regulatory proceedings may require significant management attention and could adversely affect the Company's financial condition[152][155] Regulatory and Compliance Risks - Changes in regulations governing the electric utility industry could adversely affect demand for the company's sustainable energy solutions, impacting financial performance[132] - The financial viability of solar projects is heavily influenced by equipment prices and regulations, which could reduce the economic appeal of solar power systems[138] - The company is subject to income taxes in various jurisdictions, and changes in tax laws or interpretations could significantly impact profitability and cash flow[141] - Compliance with the GDPR may impose significant requirements and potential penalties, including fines of up to €20 million or 4% of annual global revenues for noncompliance[128] - The rapidly evolving regulatory framework for privacy and security issues may result in increased operational costs and negatively impact the company's business[142] Shareholder and Governance Issues - The largest shareholder, AWN, owns approximately 47.5% of the company's outstanding Ordinary Shares as of June 30, 2022, exerting substantial influence over corporate decisions[97] - As of June 30, 2022, the balance of shareholder loans from the Significant Shareholder was $25.4 million, which could adversely affect share value if covenants are breached[99] - The company does not intend to pay any dividends on its Ordinary Shares in the foreseeable future, focusing instead on retaining earnings for business operations[92] - The company may issue additional Ordinary Shares in the future, which could result in dilution for existing shareholders[89] - The company may follow home country corporate governance practices instead of certain Nasdaq requirements, potentially affecting shareholder protections[94] Project Development and Acquisitions - VivoPower completed the acquisition of 51% of Tembo e-LV B.V. for a total consideration of €4.0 million and later acquired the remaining 49% for €2.0 million[169] - The Company acquired the remaining 50% interest in its joint venture, Caret, LLC, for $1, focusing on the development of utility-scale solar farms in the U.S.[170] - VivoPower disposed of the business and assets of J.A. Martin Electrical Pty Limited for an upfront cash payment of $3.4 million, with an estimated earn-out payment of $4.2 million based on FY2023 EBITDA[171] Market Trends and Opportunities - The Australian solar generation market is experiencing strong growth, with over AU$4.0 billion worth of approved renewable energy projects in the Western Downs region[184] - The mining sector in Australia continues to perform strongly, providing significant growth opportunities for Kenshaw in electrification and renewable power[199] - Kenshaw's customer base includes over 500 clients across various sectors, including data centers, health infrastructure, and mining, benefiting from government spending trends[192][197] - The Australian Government's health spending is projected to increase from 4.1% of GDP in 2018-19 to 6.2% by 2060-61, driving demand for Kenshaw's services[196] Performance Metrics - In FY2022, Kenshaw Solar's total revenue was $8.671 million from electrical installation projects, a significant increase from $4.172 million in FY2021[186] - Total revenue for Kenshaw in FY2022 was $12,288,000, a decrease of 33% from $18,409,000 in FY2021[200] - Kenshaw served almost 500 active customers in FY2022, indicating a diversified customer base[202] - Tembo increased revenues from EV conversion kits by 375% in FY2022, generating $789,000 from conversion kits[213] - Tembo has secured agreements for the sale of 1,675 conversion kits in Canada and 800 kits in the Nordic market over the next 5.5 years[206] Certifications and Standards - The company is ISO9001 and ISO45001 certified, demonstrating its commitment to quality and safety in delivering critical power services[182][192] - The company achieved ISO 9001:2015 and ISO 14001:2015 certifications, enhancing its quality and environmental management standards[209]

Financial Data and Key Metrics Changes - Revenue declined to $37.6 million, primarily due to strict COVID lockdowns and foreign exchange impacts, resulting in a 3% year-on-year decline on a constant FX rate basis [3] - Gross profit decreased by $4.7 million to $1.6 million, with a GP margin decline from 16% to 4%, reflecting increased compliance and supply chain costs, as well as a $1.9 million cost overrun on the Bluegrass solar project [4] - EBITDA, including discontinued operations, showed a loss of $10.4 million compared to a loss of $1.4 million in the previous year, while operating losses widened to $14.6 million from $4.8 million [5] - Cash balance at year-end was $1.3 million, down from $8.6 million, but was replenished to $8.9 million post-balance date due to the sale of non-core business units [6] - Net debt increased from $14.5 million to $27.3 million, with pro forma net debt at $19.7 million post-balance date [21] Business Line Data and Key Metrics Changes - Tembo made significant progress, but deliveries were negatively impacted; the outlook remains positive with a focus on scaling production [22] - The solar electrical solutions business has grown at a compound annual growth rate of 57% year-on-year since FY 2019, with a strong pipeline of opportunities [26] Market Data and Key Metrics Changes - The company is experiencing a "green rush" in Australia, with a pipeline of over 23 gigawatts of solar farm products being built, supported by a new federal government favorable to renewables [25] - The company has identified the U.S. and Southeast Asia as key markets for launching micro factories [23] Company Strategy and Development Direction - The company has divested non-core businesses to reinvest in higher growth areas and established subsidiaries in key global markets [7] - Focus on scaling up assembly and production for EVs, with a key objective of launching micro factories [30] - Plans to spin off the Caret business unit to reinvest proceeds into EVs and RCS [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds from COVID and foreign exchange but expressed optimism about future growth and demand for EVs [2][5] - The company is taking advantage of market conditions to recruit world-class EV talent due to headcount reductions in other companies [23] Other Important Information - The company secured a commercial design services agreement with Toyota Australia, focusing on the development of next-generation battery conversion kits [7] - The company was recognized as one of the best B Corps in the world for governance and received accolades for global impact [14] Q&A Session Summary Question: How is the GB Auto and 70 Series affecting production? - Management stated that they are comfortable with the current supply to meet requirements, especially in Australia, and expect supply chain issues to ease in the medium term [32] Question: Can you confirm the growth of Tembo kits during testing? - Management expressed confidence in the Tembo kits, highlighting their performance once integrated into vehicles [33] Question: When are you expecting to buy shares? - Management indicated a commitment to buy shares but noted delays in transactions that have affected their ability to announce purchases [34]

VIVOPOWER SUSTAINABLE ENERGY SOLUTIONS February 2022 Disclaimer This presentation contains forward-looking statements relating to VivoPower International PLC (VivoPower) within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, estimates relating to our future energy development and investment activities. You can identify these statements by forward-looking words such as "may," "expect," "anticipate," "contemplate," "believe," "estimate," "forecast," "intends" ...

VIVOPOWER HALF-YEAR RESULTS PRESENTATION FOR THE SIX MONTHS ENDED DECEMBER 31, 2021 February 24, 2022 Disclaimer This presentation contains "forward-looking statements" relating to VivoPower International PLC ("VivoPower") within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, estimates relating to our future energy development and investment activities. You can identify these statements by forward-looking words such as "may," "expect," "anticipate," "cont ...

Financial Data and Key Metrics Changes - Revenue for the six months decreased by 11% year-on-year to $18.9 million, primarily due to extended COVID lockdowns in Australia [4][5] - Gross profit and gross profit margin both declined as a result of the revenue drop, with adjusted EBITDA declining to negative $4.9 million compared to positive $1.2 million in the previous year [6][28] - Operating loss increased to $7.3 million from $0.4 million in the prior year, reflecting increased corporate costs and investments in growth [6][28] - Cash balance declined from $8.6 million to $3.3 million, but has increased post-balance date due to incoming data collections and strategic funding [7][30] Business Line Data and Key Metrics Changes - Tembo electric vehicles reported revenues of $0.9 million, impacted by operational disruptions and delays in assembly and delivery of kits [19] - Aevitas business recorded $18 million in revenue, down 14% year-on-year, with gross profit down to $0.8 million from $2.3 million in the prior year [20] - Caret Solar, the U.S. solar business, contributed 206.5 megawatts of advanced projects valued at $20 million, with ongoing reassessment of previously marketed projects totaling about 1.1 gigawatts [24] Market Data and Key Metrics Changes - The company has expanded its distribution partner network to six continents and established a subsidiary in the UAE, the largest off-road market [8] - There is a strong interest in renewable power sites in the U.S., particularly from crypto hosting companies facing long lead times [25] Company Strategy and Development Direction - The company is focused on strategic initiatives despite disruptions, including the development of a 72 kilowatt-hour battery kit and entering into letters of intent for renewable-powered digital asset mining [8][16] - The company aims to create infrastructure for blockchain applications beyond crypto mining, accommodating high energy-intensive computing applications [40][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced due to COVID lockdowns but expressed optimism about the removal of restrictions and positive developments in the pipeline [32] - The company is navigating supply chain issues and is focused on non-dilutive funding options to support growth [29][15] Other Important Information - The company has been recertified as a B Corp, recognized as a top global impact company for the second consecutive year [9] - The company is exploring collaborations with major mining and infrastructure companies for electrification projects [22] Q&A Session Summary Question: Interest in creating Tembo facilities closer to Southeast Asia, Australia - Management confirmed ongoing interest in establishing micro factories in Thailand and the UAE, leveraging local automotive ecosystems [36] Question: Clarification on Caret Decimal's focus on blockchain applications - Management explained that Caret Decimal is designed to support various energy-intensive blockchain applications, including crypto mining, content creation, and smart contracts [37][38] Question: Strategy regarding potential regulatory scrutiny of crypto - Management acknowledged the likelihood of crypto regulation but emphasized that the infrastructure being developed is intended for broader blockchain applications, not solely dependent on crypto mining [40][41]

Financial Performance - Revenue from contracts with customers for the year ended June 30, 2021, was $40,411,000, a decrease of 15.9% from $47,986,000 in 2020[26] - Gross profit for the year ended June 30, 2021, was $6,327,000, down from $7,101,000 in 2020, reflecting a gross margin of 15.6%[26] - The company reported a loss for the period of $7,958,000 for the year ended June 30, 2021, compared to a loss of $5,103,000 in 2020[26] - Total revenue for the year ended June 30, 2021, was $18,409,000, a decrease of 37% from $29,343,000 in 2020[217] - Generator sales and installation revenue dropped to $11,479,000 in 2021 from $23,579,000 in 2020, reflecting a decline of 51%[217] - The company experienced a loss of $8.0 million for the year ended June 30, 2021, following a loss of $5.1 million for the year ended June 30, 2020[81] Assets and Liabilities - Total assets increased to $76,512,000 as of June 30, 2021, from $62,380,000 in 2020, indicating a growth of 22.6%[28] - As of June 30, 2021, the company had an aggregate of $23.0 million in debt obligations, impacting its ability to make scheduled payments[85] - The company may not be able to generate sufficient cash flow to service all its indebtedness, which could adversely affect its financial condition[85] Strategic Focus and Market Position - The company has pivoted its strategy to focus on delivering end-to-end sustainable energy solutions following the Tembo acquisition, targeting corporate customers in hard-to-decarbonize sectors[33] - The company plans to expand significantly in the commercial electric vehicle market, focusing on light electric vehicles for the mining, infrastructure, and utilities sectors[48] - The company is targeting significant growth across its businesses over the next 5 years, driven by industry trends such as electrification of fleet vehicles and renewable energy sector growth[87] - VivoPower is focused on delivering turnkey decarbonization solutions, targeting harder-to-decarbonize sectors such as mining and infrastructure[190] Operational Risks and Challenges - Significant investments will be required to scale up the new Sustainable Energy Solutions (SES) strategy, which may strain financial and management resources[35] - The estimated revenue and cost synergies from the Tembo acquisition may not be realized if integration challenges arise[37] - Market acceptance of Tembo's zero-emission vehicles is critical and may be influenced by perceptions of quality, safety, and government regulations[41] - Tembo's operational risks include potential supply chain shortages, particularly regarding batteries, which may adversely affect operations, profits, and cash flow[51] - The company has limited experience in developing and scaling the SES business segment, which may lead to operating losses if not managed properly[65] - The company faces foreign currency exchange risks due to operations in multiple countries, which can significantly affect reported financial results[74] Innovation and Product Development - The company is engaged in product innovation with Tembo, focusing on introducing LEV conversion kits with longer range and greater payload capacity[49] - Following the acquisition of Tembo, distribution agreements were signed with partners in North America, Australia, and Europe to sell Tembo LEV conversion kits[50] - The company must continuously innovate to remain competitive in a rapidly evolving market characterized by changing technologies and consumer demands[53] Market and Economic Conditions - General economic conditions, including inflation and interest rates, could negatively impact demand for the company's products and services[115] - A deterioration in economic conditions could significantly impact the company's access to third-party financing on attractive terms[127] - Seasonal variations in demand linked to weather conditions may influence operational results, with extreme weather events potentially exacerbating these fluctuations[121] Compliance and Regulatory Risks - Compliance with GDPR regulations may impose substantial penalties for noncompliance, including fines up to €20 million or 4% of annual global revenues[136] - Changes in regulations governing the electric utility industry could materially affect demand for the company's sustainable energy solutions[141] - The financial viability of solar projects is heavily influenced by equipment prices and regulatory changes, which could reduce economic appeal[148] - The company is subject to income taxes in various jurisdictions, and changes in tax laws could negatively impact profitability and cash flow[151] Shareholder and Governance Issues - The largest shareholder owned approximately 44.2% of the outstanding ordinary shares as of June 30, 2021, exerting substantial influence over corporate decisions[107] - The balance of the shareholder loan from the largest shareholder was $21.2 million as of June 30, 2021, which could adversely affect share value if covenants are breached[108] COVID-19 Impact - The company has faced significant adverse impacts from COVID-19, affecting operations in key markets including the U.K., Australia, the Netherlands, and the U.S.[111] - Supply chain disruptions due to COVID-19 have resulted in additional expenses and delays in fulfilling customer orders, adversely affecting revenues[114] - Operational disruptions due to COVID-19 led to delays in project commencement and revenue recognition, impacting profitability margins[217] - The business has adapted to longer lead times from suppliers due to supply chain disruptions caused by the pandemic[217] - The company has implemented health and safety best practices to mitigate pandemic impacts[217] Employee and Workforce Considerations - The critical power services workforce in Australia includes 158 operational personnel, representing 90% of the total workforce as of June 30, 2021[68] - The company is highly dependent on key personnel, including its CEO, and faces challenges in attracting and retaining skilled employees, which could impact business operations[172] Acquisitions and Growth - VivoPower completed the acquisition of 51% of Tembo e-LV B.V. for €4.0 million and the remaining 49% for €1.8 million cash and €0.2 million in shares, focusing on ruggedized electric vehicles for mining and infrastructure sectors[186] - VivoPower acquired the remaining 50% interest in Caret, LLC for $1, which develops utility-scale solar farms in the U.S.[187] - The company completed acquisitions totaling $10.1 million for VivoPower Australia and Aevitas, enhancing its operational capabilities in the renewable energy sector[183] Subsidiaries and Operations - VivoPower operates 22 subsidiaries and associated entities across multiple countries, including Australia, Canada, the Netherlands, the UK, and the US[188] - J.A. Martin serviced almost 250 customers across various industries, including solar farms and mining, with a fleet of 76 vehicles and 132 employees[200] - Kenshaw, a subsidiary of VivoPower, has over 500 clients and provides critical electrical power services, benefiting from growth in the data center and health sectors[210][214]

August 23, 2021 VIVOPOWER ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED JUNE 30, 2021 Disclaimer This presentation contains "forward-looking statements" relating to VivoPower International PLC ("VivoPower") within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, estimates relating to our future energy development and investment activities. You can identify these statements by forward-looking words such as "may," "expect," "anticipate," "contemplate," "beli ...

Financial Data and Key Metrics Changes - Group revenues decreased by 16% to $40.4 million compared to $48 million in the previous year, primarily due to COVID-19 related lockdowns impacting operations and project delays in Australia [2][12] - Gross profit declined by 11%, but gross margins improved from 14.7% to 15.6% due to efficiency gains [3] - Underlying EBITDA fell to a loss of $1.4 million from a profit of $3.9 million in the prior year, influenced by increased overhead costs and non-recurring charges [4][12] - The statutory loss after tax increased to $8 million from $5 million in the previous year, with statutory EPS worsening to negative $0.49 from negative $0.38 [12] Business Line Data and Key Metrics Changes - Critical Power Services faced project delays due to lockdowns but expects strong rebounds starting October 2021 as vaccination rates increase [14][15] - Tembo's focus for FY '22 is on delivering orders to key markets, particularly Australia, while managing supply chain challenges [17] - Sustainable Energy Solutions (SES) aims to capitalize on decarbonization trends in the mining industry, with expectations to deliver projects with Tottenham Hotspur [18] Market Data and Key Metrics Changes - The Australian government plans to end lockdowns once vaccination rates reach 70%, which is expected in October, and 80% by early November [14] - The mining sector is experiencing high commodity prices, which is expected to drive infrastructure spending and demand for critical power services [16] Company Strategy and Development Direction - The acquisition of Tembo is seen as transformational, with commitments for nearly 5,000 electric vehicle conversion kits and a partnership with Toyota Australia [6][12] - The company is pivoting from turnaround mode to hyperscale mode, focusing on growth in the Tembo and SES businesses [9] - Future objectives include expanding SES capabilities, completing projects with Tottenham Hotspur, and enhancing engineering and sales teams [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery in the critical power services business post-lockdowns, supported by strong infrastructure spending and a resurgent mining sector [15][16] - The company is committed to further investments in R&D and engineering to enhance product offerings and meet growing demand [17][18] Other Important Information - The balance sheet improved significantly, with net assets increasing to over $40 million from $17.9 million, and cash balance rising to $8.6 million from $2.8 million [5][13] - The company has rebranded its solar entity to Caret Solar, focusing on Power2X applications, including crypto-mining and green hydrogen [19][20] Q&A Session Summary - The conference call concluded without any recorded questions or answers, indicating a lack of engagement during the Q&A segment [26]

VIVOPOWER HALF-YEAR RESULTS PRESENTATION FOR THE 6 MONTHS ENDED DECEMBER 31, 2020 February 24, 2021 Disclaimer This presentation contains "forward-looking statements" relating to VivoPower International PLC ("VivoPower") within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, estimates relating to our future energy development and investment activities. You can identify these statements by forward-looking words such as "may," "expect," "anticipate," "contem ...

Financial Data and Key Metrics Changes - Revenues declined by 28% year-on-year to $22.7 million, primarily due to strict COVID-19 lockdowns in Australia [3] - Gross profit decreased by 18% year-on-year to $4.6 million, but gross profit margin improved to 20% from 18% in the previous year [4] - EBITDA declined to $1.2 million from $4.2 million in the previous corresponding period [4] - Basic EPS was negative $0.03 compared to positive $0.08 in the previous period [38] - Unrestricted cash increased from $2.8 million to $17.4 million as of December 31 [39] - Net debt declined from $23.1 million to $8.3 million, reflecting an improved credit profile [40] Business Line Data and Key Metrics Changes - Aevitas revenues were $22.3 million, down 29% year-on-year, with gross profit of $4.6 million compared to $5.6 million previously [11] - Underlying EBITDA for Aevitas was $3.3 million, down 80% [11] - Tembo's revenue contribution was $0.4 million for the half-year period, reflecting only two months of contribution post-acquisition [21] Market Data and Key Metrics Changes - The U.S. portfolio's net megawatt capacity is 892, slightly down from the original economic share of 922 [15] - The outlook for the U.S. portfolio has improved with the Biden administration's support for renewable energy [16] - Successful sales of smaller solar projects in Austria, including Daisy Hill and Yoogali Solar, are expected to be profitable [16] Company Strategy and Development Direction - The Tembo acquisition has transformed VivoPower's growth trajectory, moving to 100% ownership in February 2021 [6] - A major partnership with GB Auto to distribute Tembo electric vehicles in Australia is expected to generate up to $250 million in revenue over four years [6][20] - The company aims to provide holistic decarbonization solutions, including electric vehicles, site electrification, and battery lifecycle management [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that strict COVID lockdowns affected results but expressed strong growth outlook due to the Tembo acquisition [3] - Conditions have improved since the start of 2021, and the outlook for Aevitas remains buoyant [12] - The partnership with Tottenham Hotspur is expected to catalyze further interest in VivoPower's offerings in the UK market [30] Other Important Information - VivoPower established an advisory council to support growth plans, particularly for Tembo [31] - The company has expanded its team with key hires in sales and sustainable energy solutions [33] - VivoPower was awarded the Real Readers top 50 impact awards, ranking 47th globally [34] Q&A Session Summary - The Q&A session concluded without any specific questions or answers being recorded [41]