VivoPower Plc Q4 FY2022 earnings call

• Strategic progress despite headwinds: Secured commercial design services agreement with Toyota Australia, expanded distribution partnership network to 6 continents 50 countries, EV commitments/orders over 8,000. - Divested non-core businesses in Aevitas to reinvest in higher growth businesses. - Established subsidiaries/operating units in global markets post-border reopening. - Recertified B Corp status, recognized as best B Corp for Governance and 100 global impact company. - Reshaped team with key hires and promotions: Alun Evans as Tembo Head of Quality, Nathan McCormick as Tembo Head of Functional Safety, Jean Diego Banon as Head of Corporate Deployment; Matthew Nestor promoted to Head of Global Partnerships, Gary Challinor to Group COO, Iain Folley to Financial Controller APAC.

Revenue declined to $37.6 million, primarily due to COVID lockdowns and foreign exchange issues, a 3% year-on-year decline. Gross profit decreased by $4.7 million to $1.6 million, with a GP margin decline of 4% (9% adjusted for Bluegrass cost overruns, 10% excluding discontinued operations). EBITDA including discontinued operations was a loss of $10.4 million vs. $1.4 million loss prior year. Tembo made progress but deliveries were negative; Solar Electrical Solutions had a strong pipeline with over 23 gigawatts of unpriced solar farm products; Caret focused on spin-off to reinvest proceeds to EVs and RCS. Revenue contribution details: Solar Electrical Solutions had significant contracts, Tembo had EV commitments/orders over 8,000.

• Focus on FY '23: Scale up assembly and production for EVs, with 18 key objectives, micro factory as key enabler. - Secured 1,000 new EV kits with state-owned enterprise. - Focus on Toyota Australia and key distributors/customers. - Capitalizing on opportunities to hire EV talent and bolster cash balance through divestment of non-core units. - Plan to spin off Caret business unit and reinvest proceeds to EVs and RCS.

• Lingering COVID effects causing delays in works. - Sharp drop in exchange rate. - $1.9 million cost overrun on Bluegrass solar project. - Supply chain and logistics issues affecting assembly and production scale-up.

Q: Knowing the demand for the 70 Series is high combined with supply chain and [Technical Difficulty], how are GB Auto and 70 Series affecting production? Have there been conversations with Toyota to speed up installation?

A: Toyota is the gatekeeper for vehicle releases. Currently, comfortable with available resources to meet requirements in Australia short-term. Medium-term contingent on supply chain, especially semiconductors.

Q: Can you confirm or deny whether the Tembo kits growth during testing?

A: Without breaching confidence, no denial has been put out; confident in Tembo kits, and once Land Cruiser has it, it's a powerful vehicle.

Q: When are you expecting to buy shares?

A: Had deals/transactions delayed in announcing volume, committed salary to be credited, in open window hoping to buy shares soon