VivoPower Plc Q4 FY2021 earnings call

• Board and leadership team strengthened: Recruited Jos van der Linden as MD of Tembo, Gary Challinor as Australia’s Director of Sustainable Energy Solutions, James Howell-Richardson as General Counsel; Gemma Godfrey joined the Board; assembled an advisory council with diverse capabilities.
• Completed 16 out of 18 objectives set last year, with misses in securing new strategic development partners for U.S. sites and digital transformation solutions.
• Tembo acquisition transformational, tracking ahead of schedule with global distribution partnerships and LOI with Toyota Australia.
• First full suite SES feasibility study with Tottenham Hotspur for training grounds and stadium in North London.
• Gained full ownership of U.S. Solar joint venture.

Group revenues were $40.4 million, down 16% from the previous year due to COVID-19 related lockdowns in Australia. Gross profit declined by 11% but gross margins increased from 14.7% to 15.6%. EBITDA was negative $1.4 million versus $3.9 million in the prior year. Balance sheet improved with cash at the end of the fiscal year at $8.6 million. Critical Power Services: Expected rebound from October 2022 as vaccination rates increase, with strong infrastructure and mining sectors. Tembo: Focus on delivering orders to key markets, especially Australia, managing supply chain and demand via bill slot program, and ongoing R&D. Sustainable Energy Solutions: Focus on mining, infrastructure, sports sectors; first full suite SES feasibility study with Tottenham Hotspur; Caret Solar repositioned to reinvest proceeds into core SES.

• Critical Power Services: Expect strong rebounds from October 2022 as vaccination rates hit 70% and 80%, with strong infrastructure and mining sectors.
• Tembo: Focus on delivering orders to Australia, managing supply chain and demand, and ongoing R&D in multiple locations.
• Sustainable Energy Solutions: Complete Tottenham Hotspur projects, build engineering and sales teams, explore M&A/joint ventures.
• Cement partnerships with Toyota and global distributors, secure 5,000 additional e-LV kits globally by end of calendar year.
• Execute corporate initiatives: Maximize U.S. solar portfolio, complete digital transformation and workflow automation, focus on B Corp impact.

• COVID-19 related lockdowns causing operational disruption and project delays.
• Supply chain blockages and border dynamics affecting Tembo orders.
• Managing demand vs supply chain obstacles for Tembo.
• Completing digital transformation and workflow automation across the group.