VivoPower Plc Q4 FY2020 earnings call

• FY'20 revenues were $48.7 million, with growth in Aevitas despite COVID-19 lockdowns in Australia. - Gross profits increased 28% due to margin improvements from better pricing in Australia and reduced Group overheads by $1.7 million since 2017, totaling a 17% reduction in overheads since IPO. - Strategic pivot to sustainable energy solutions, including electric vehicles (EVs) and battery second life applications. Aevitas has over 700 active customers, and the EV strategy focuses on pickup trucks/utes, mining/infrastructure segments, Australia initially, customer holistic solutions, and capital efficiency. - Board restructured in June to bolster technology and software capabilities for the EV strategy. - US solar portfolio turnaround ongoing, with efforts to gain control of the joint venture and monetize the portfolio. - Australia solar developments impacted by policy uncertainty and COVID, but with tailwinds from government initiatives promoting renewable investment and battery storage becoming economic across Australia.

Annual revenues for FY'20 were $48.7 million, driven largely by growth in Aevitas, the Critical Power Services business in Australia. Gross profits were up 28% versus prior year, with margin improvements due to better pricing strategy in Australia. Underlying EBITDA turned around from a loss of negative $3.8 million in the prior year to $3.9 million in FY'20 (excluding restructuring and other non-recurrent charges). Cash declined $2.8 million versus the same time last year, and net debt increased to $23.1 million. Aevitas has over 700 active customers in segments like mining, infrastructure, agriculture, municipalities, contributing significantly to the business.

• Primary objective for FY'21 is to consummate the first EV and sustainable energy solution orders. - Build customer service and technical teams to augment existing critical power capabilities for the EV strategy. - Open to joint venture and acquisition options to fill gaps in delivering the EV strategy. - Key objectives for the year: win new EV and sustainable energy solution customer orders, scale up the Aevitas business unit, turnaround the US solar project portfolio, grow the Australian solar and battery pipeline, optimize capital management, and maintain a lean and sustainable culture.

• COVID-19 lockdowns in Australia during Q2-Q3 2020 delayed business, though activity picked up post-year end. - Challenges in the US solar joint venture partnership, with ongoing efforts to turnaround the portfolio. - Policy uncertainty in Australia affecting regulatory approvals for solar development projects.

Q: No questions were raised during the call.

A: Kevin Chin indicated no questions were posed, and the call concluded shortly after