VivoPower International PLC

Good day, and thank you for standing by. Welcome to the Vivo Power International PLC Fiscal Year 2022 Full Year Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Kevin.

Thank you, Victor, and welcome, everyone, to the F.22 conference. earnings call for a beautiful deal. We'll jump straight into slide two, which is the executive summary. So in a nutshell, we've made significant strategic progress over the last 12 months, but we've had to contend with quite a few headwinds, including lingering COVID effects on our businesses in Australia, as well as foreign exchanges. So going through key points, firstly, revenue declines to 37.7%, primarily attributable to these COVID lockdowns, which we previously flagged as a half-year result, which unfortunately did extend through the majority of periods over the last six months as well. That caused delays to distribute works for our businesses yesterday. In addition, there's been a sharp drop in the exchange rate on a constant effective basis. Our revenue declined by 3% year on year. In terms of gross profits, this includes the discontinued operations. They decreased by $4.7 million to $1.4 million for the same reasons I mentioned before, and in addition to that, In particular, we had a $1.9 million cost overrun on the bluegrass project due to interstate border closures in Australia. Our GDP margin declined to 4% versus 16% year-on-year, and this in turn reflects increased compliance costs, increased supply chain costs, as well as the one-off bluegrass solar project GP margin adjusted for the cost overruns for bluegrass was 9% for FY22 and excluding the discontinued operations was 10%. EBITDA including discontinued operations declined to 10.4 mil loss versus 1.4 mil loss in the previous year. Operating losses widened to 14.6 mil versus Again, this was driven by FX, the reduced lockdown period revenues in the first half of the year, and the Bluegrass Solar project overruns. We did progress with budgeted increase in growth OPEX to support high-performing business. In terms of our cash balance, as at year end, it was $1.3 million, down from $8.6 million in the previous year. However, post-balance date, we replenished this to $8.9 million. That was because of the sale of the non-core business units, as well as the shelf-raising we did in July. In terms of uses of cash during the year, we were quite judicious in terms of how we invest cash for TEMBO scale up in product development. That said, we did incur, as I mentioned, 1.9 mil in one-off bluegrass solar costs that were unplanned and beyond our control. We did execute on a number of transformational strategic initiatives despite significant disruptions. In terms of our distribution partnership network, we expanded that six continents and 50 countries with EV commitments and orders increasing to over 8,000. Very importantly, we secured a commercial design services agreement with Toyota Australia with prioritization of the developments of the next generation for what our and version 2 battery conversion kit as the key focus. We divested non-core businesses within a business and enabled proceeds to be reinvested in our higher growth business. And we also established Vivo Power and Tembo two-series operating units in markets globally. As soon as borders reopened, that included the UAE, as well as South Africa. Last but not least, we recertified our B Corp status, which is a mandatory requirement from B Corp in terms of a reassessment. We were named again as one of the best B Corps in the world for governance and 100th year in a row.

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