VivoPower Plc Q2 FY2023 earnings call

• Strategic progress made during the half year despite challenges.
• Revenue decline due to project timing and foreign exchange, but on constant exchange rate, decline was 17%.
• Edenvale solar project had one-off weather-driven cost overruns of $3.6 million due to heavy rainfall.
• Adjusted EBITDA loss excluding Edenvale improved.
• Cash position increased to $3.2 million from $1.3 million.
• Extended loan repayment terms with major shareholder.
• Expanded Tembo's distribution partner network globally, order book over 10,000 kits.
• EUV23 development on target, with customer deliveries scheduled.
• Secured bridge financing and private investments.
• Recruited talent from downsizing EV companies.
• Concluding Edenvale project by end of February 2023.
• Kenshaw Electrical executed three-year umbrella agreement with Glencore.

For the half year, Tembo had revenues of $0.9 million with an underlying EBITDA loss of negative $0.5 million. The EUV23 platform was available on time, distribution network expanded, and hiring of engineering talent occurred. Aevitas was hit by unplanned weather issues on the Edenvale solar project, leading to significant losses, but Kenshaw Electrical is building up its order book. Sustainable Energy Solutions pivoted focus to mining and other industries and is working on EV charging partnerships. Caret Solar pivoted to Power-to-X but was affected by Bitcoin market correction, though interest is reemerging. Revenue for the half year decreased 23% year-on-year to $8.7 million, with gross profit at negative $3.6 million and GP margin at negative 42% (adjusted for Edenvale, it was minus 1%). Adjusted EBITDA loss excluding Edenvale improved to negative $3.9 million vs prior period's negative $4.5 million.

• Confident in executing objectives for the second half of the year.
• Focus on ramping up Tembo's production and delivery.
• Expect further momentum from Kenshaw Electrical over the next six months.

• Weather-related risks leading to cost overruns and project delays, like heavy rainfall affecting Edenvale project.
• Foreign exchange risks impacting financial results.

Q: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

A: Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.