Vivopower Plc · NASDAQ:VIVO
Vivopower — VivoPower International — Investor Presentation (March 2017)
18 slides from Vivopower's investor presentation, Mar 14, 2017
Slide 1: VivoPower International PLC Investor Presentation
VIVOPOWER INTERNATIONAL PLC Investor Presentation 14 March 2017
Slide 2: Disclaimer
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 activ
Slide 3: VivoPower snapshot
VivoPower snapshot NASDAQ listed solar power platform with global operations across US, Europe, Australia, and SE Asia Build, Transfer, Operate (BTO) business model Build projects (pre-sold) Transfer to long-term investors Operate to optimise performance Highly capital efficient build out of an inst
Slide 4: A global footprint with strong equity sponsorship
A global footprint with strong equity sponsorship San Francisco Dallas New York London Singapore Sydney Shareholder Ownership 3rd party shareholders 26.1% Arowana 60.3% Management13.6% Capitalization Table (US$m) Convertible Preference Shares 24.3 Market Capitalization (1) 64.1 Equity Market Capital
Slide 5: BTO model de-risks revenue profile
BTO MODEL DE-RISKS REVENUE PROFILE… Build Transfer Operate Return Risk VivoPower’s Role Partner with Developers Financing, Engineering Optimization & Procurement Asset Management Build & Transfer minimizes development risks and enhances capital efficiency Operation (via asset management contracts) o
Slide 6: Positioning VivoPower to lead a new energy world
…POSITIONing vivopower TO LEAD A NEW ENERGY WORLD Customers seek energy as a service in an increasingly complex and digitized DG world ELECTRICITY GROWING STAKEHOLDER CONCERNS CHANGING REGULATIONS NEW FINANCING OPTIONS ENERGY MANAGEMENT TECHNOLOGIES MICROGRIDS, NEW GENERATION & STORAGE TECHNOLOGIES
Slide 7: A well defined growth strategy
A WELL DEFINED GROWTH STRATEGY… 2016 2017 2018 2019 Revenue Stack Energy Services Recurring revenues from energy services including storage, demand response management and data driven technology services Energy Services Own Recurring revenues from minority ownership in solar power plants underpinned
Slide 8: The team has a strong track record of execution
THE TEAM HAS A STRONG TRACK RECORD OF EXECUTION… Kevin Chin Non-Exec Chairman Founder and Executive Chairman of VivoPower’s key shareholder, Arowana International Limited Has extensive growth and management experience as a CEO, CFO and COO including leadership role in building a global enterprise so
Slide 9: And delivered on key CY2016 objectives
…And DELIVERED ON KEY CY2016 OBJECTIVES… Build Financial Base and Access to Capital Completed reverse merger public offering on NASDAQ: VVPR Secured long term financial sponsorship by Arowana & Co. Established strategic relationships with dedicated solar funds in Australia, Asia & Europe Expanded re
Slide 10: Including the build and transfer of 91MW in the US
...INCLUDING THE BUILD AND TRANSFER OF 91MW IN THE US… FY2017 Projects Overview Key Project Details In 2H 2016, VivoPower announced contractual closing of the financing to complete the construction of two utility-scale solar PV projects in North Carolina, USA, NC-31 and NC-47, totaling 91 MWDC VivoP
Slide 11: And aggregation of CIG rooftop assets in Australia
…AND AGGREGATION OF 67 CIG ROOFTOP ASSETS in AUSTRALIA 68 roof top solar PPAs in Australia operated by VivoPower Kettridges (stockfeed producer) Amaroo (public school) Project Locations No. of installs Kw 9 179 WA Total 67 2,186 SA 7 253 VIC 12 187 TAS 1 25 NSW 36 928 ACT 2 614 Sample Project Detail
Slide 12: Ample qualified pipeline
AMPLE qualified PIPELINE… Qualified Pipeline by Geography (1) (2.3 GW) USA Europe LatAm Australasia Region USA Europe LatAm Australasia Total MW 1,796 279 155 72 2,303 % of Total 78% 12% 7% 3% 100% VivoPower needs to convert less than 10% of its qualified pipeline to achieve its revenue & EBITDA goa
Slide 13: That underpins a strong growth outlook
… THAT UNDERPINS A STRONG GROWTH OUTLOOK Forecast Revenue (US$m) Revenue CAGR: 48% 27.1 52.5 56 – 61 2016 2017 2018 (1) Adjusted EBITDA is a non-IFRS measure. See the reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure. Forecast Adjusted EBITDA1 (US$m) Adjusted EBITDA CAG
Slide 14: Key metrics indicate continued growth
Key metrics INDICATE CONTINUED GROWTH (US$ in millions) Pipeline (MW)1 MW Converted2 Revenue ($m) Adjusted EBITDA3 Equity in converted projects4 BTO revenues from project conversion5 ROE for converted projects Average months invested6 FY17 Estimated FY18 Forecast 2,000 91.3 52.5 18.8 13.7 25.4 1.85x
Slide 15: Revenue is expected to exceed forecasts
REVENUE IS Expected TO EXCEED FORECASTS… S$ millions Build & Transfer Revenue Own & Operate Energy Services and Aevitas Other revenue Total revenue FY17 Estimated FY17 Annualized2 FY18 Forecast 25.1 0.1 5.5 1.6 32.2 25.1 0.3 25.5 1.6 52.5 30 – 40 - - - 56 – 61 Commentary BTO sales revenue is recogni
Slide 16: As are operating profits
… AS ARE OPERATING PROFITS US$ millions Cost of sales Gross Profit Administrative expenses Operating profit FY16 FY17 Estimated FY17 Annualized FY18 Forecast 27.1 (24.0) 3.1 (3.5) (0.4) 32.2 (5.8) 26.4 (8.5) 17.9 52.5 (22.4) 30.1 (12.2) 17.9 56 – 61 - - - 22 – 25 Comments The “Cost of Sales” is pred
Slide 17: Reconciliation of earnings metrics to IFRS financial measures
Reconciliation of EARNINGS METRICS to IFRS FINANCIAL MEASURES Statement of Income Reconciliation (US$M) Operating profit Add back: Non-recurring advisory and management fee expenses Amortization of identified intangibles recognized in business combinations Subtotal: Abnormal Items EBIT Add back: Dep
Slide 18: Investor value proposition
INVESTOR VALUE PROPOSITION Strong industry tailwinds Declining costs, political support and a groundswell of boardroom and community support for clean power accelerates take-up of solar and renewable power driving sustainable growth Large global addressable market Business model, product and service
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