VivoPower International PLC (VVPR) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to the VivoPower International PLC fiscal year 2023 half-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 now like to hand the conference over to your speaker today, Kevin Chin.

美好的一天，感謝您的支持，歡迎參加 VivoPower International PLC 2023 財年半年度收益電話會議。此時，所有參與者都處於只聽模式。請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人 Kevin Chin。

Good morning, ladies and gentlemen. Welcome to the VivoPower half-year results presentation for the period ended December 31, 2022. I'll take you firstly to page 3 of our presentation. The executive summary.

早安，女士們，先生們。歡迎觀看截至 2022 年 12 月 31 日的 VivoPower 半年度業績示範。執行摘要。

So, at a headline level, we made very good strategic progress during the half year. However, our results were affected by unseasonal weather and foreign exchange. Our revenue declined due to project timing and a decline in the Australian dollar versus the US dollar foreign exchange rate. So, our half-year revenue decreased 23% year-on-year to $8.7 million.

因此，從總體上看，我們在半年中取得了非常好的策略進展。然而，我們的業績受到反季節天氣和外匯的影響。由於專案時間表和澳元兌美元匯率下跌，我們的收入有所下降。因此，我們的半年營收年減 23% 至 870 萬美元。

This is primarily attributable to timing of project execution with one major solar project, Edenvale, undertaken in Australia versus two in the prior period. Skills shortages have had an impact on our ability to take on new projects. However, on a constant Australian dollar/US dollar exchange rate basis, our revenue decrease was reduced at 17%.

這主要歸因於在澳洲進行的一個主要太陽能專案 Edenvale 的專案執行時間安排，而上一期間有兩個專案。技能短缺影響了我們承擔新專案的能力。然而，在澳元兌美元匯率不變的基礎上，我們的營收下降幅度減少了 17%。

Our gross profit and GP margin also declined. This was due to the decrease in revenue as well as one-off Edenvale project losses. So, half-year gross profit decreased by $3.1 million year-on-year to negative $3.6 million. This does include $3.6 million of specific one-off weather driven cost overruns on the Edenvale solar project. And this was due to climate change-related higher than forecast rainfall leading to damage of project works and delays in execution.

我們的毛利和毛利率也下降了。這是由於收入減少以及伊登維爾項目一次性虧損所致。因此，半年毛利年減310萬美元至負360萬美元。這確實包括伊登維爾太陽能專案 360 萬美元的特定一次性天氣驅動成本超支。這是由於與氣候變遷相關的降雨量高於預測，導致工程工程受損和執行延誤。

Edenvale is in the regional part of Australia, which normally doesn't encounter the extensive rainfall that was experienced unfortunately during the project. GP margin as a result declined to negative 42% versus the prior year, minus 4%. However, adjusted for Edenvale cost overruns, this was minus 1% for the half year.

伊登維爾位於澳洲的偏遠地區，通常不會遇到計畫期間不幸經歷的大範圍降雨。毛利率因此下降至負 42%，較前一年下降 4%。然而，根據伊登維爾成本超支進行調整後，半年的成本超支為-1%。

We also incurred EBITDA operating losses due to principally the one-off Edenvale project loss. So, for the half year, our adjusted EBITDA loss, excluding Edenvale, actually improved to negative $3.9 million versus $4.5 million negative in the prior corresponding period.

我們也產生了 EBITDA 經營虧損，主要是因為一次性 Edenvale 專案虧損。因此，在半年中，我們調整後的 EBITDA 虧損（不包括 Edenval）實際上改善至負 390 萬美元，而去年同期為負 450 萬美元。

Operating losses did increase to negative $8.2 million versus $7.7 million for the first half of this fiscal year. Losses were also driven by foreign exchange not moving favorably and reduced revenues in Australia as previously mentioned.

營運虧損確實增加至負 820 萬美元，而本財年上半年為 770 萬美元。如前所述，外匯波動不佳以及澳洲收入減少也造成了損失。

With respect to our balance sheet, our cash position actually increased at December 31, 2022, from the $1.3 million as at June 30, 2022. It had an increase to $3.2 million as at half year-end. Our cash was principally invested for Tembo scale-up and product development. The one-off Edenvale solar loss was obviously unplanned.

就我們的資產負債表而言，我們的現金部位實際上從 2022 年 6 月 30 日的 130 萬美元增加到 2022 年 12 月 31 日。我們的現金主要投資於 Tembo 規模擴大和產品開發。伊登維爾的一次性太陽能損失顯然是計劃外的。

We did partially de-risk our balance sheet through the extension of the repayment terms and duration with our major shareholder AWN, which extended the loan by 18 months to the April 1, 2025. Strategically, we made good progress, as I mentioned beforehand.

透過延長大股東AWN 的還款期限和期限，我們確實部分降低了資產負債表的風險，將貸款延長了18 個月至2025 年4 月1 日。我們取得了良好進展。

So, our distribution partner network for Tembo, we've been able to further expand that globally and also have entered into the much larger second-hand addressable market. And our EV kit commitments and orders book has now increased to over 10,000 kits. Importantly, the development of our next-generation Electric Utility Vehicle, which we've called EUV23, is on target with positive feedback from key customers who have visited, and test driven the vehicle.

因此，我們的 Tembo 分銷合作夥伴網路已能夠在全球範圍內進一步擴展，並且還進入了更大的二手市場。我們的評估套件承諾和訂單現已增加到超過 10,000 個套件。重要的是，我們的下一代電動多功能車（我們稱之為 EUV23）的開發已達到目標，並獲得了參觀和試駕車輛的主要客戶的積極回饋。

We also completed the divestiture of our non-core business, J.A. Martin Electrical, as well as completed further financing and strategic investment initiatives to fund growth.

我們也完成了非核心業務 J.A. 的剝離。馬丁電氣也完成了進一步的融資和戰略投資計劃，為成長提供資金。

Last but not least, in terms of the summary, we were named one of the best B Corps in the world for governance with a verified score in the top 10% of all certified B Corps in the world. And we were again recognized as a top 300 (sic - see presentation, "200") global impact company for the third year in a row, by the Real Leaders Impact Awards.

最後但並非最不重要的一點是，總而言之，我們被評為全球治理方面最好的共益企業之一，經驗證得分在全球所有經過認證的共益企業中名列前 10%。我們連續第三年被 Real Leaders Impact Awards 評為全球影響力 300 強（原文如此，請參閱「200 強」）公司。

Moving on to page 4. So, this covers some of the key items and key developments since the half year ended December 31, 2022. So, firstly, we've commenced shipping our vehicles to partners. And we've also received our first orders for the next generation EUV23. So, we're thankful to our key partner in Canada, Accès, for our first material order of the EUV23 conversion kits.

轉到第 4 頁。 這涵蓋了自截至 2022 年 12 月 31 日的半年以來的一些關鍵項目和關鍵進展。我們也收到了下一代 EUV23 的第一批訂單。因此，我們感謝加拿大的主要合作夥伴 Accès 為我們提供了 EUV23 轉換套件的第一份材料訂單。

And we are in the midst of prioritizing ramping up production over the coming months to fulfill this order as well as others that we already have. Our customer deliveries have been scheduled and agreed for GHH in South Africa as well as the Jankle in the UK over the course of February and March 2023.

我們正在優先考慮在未來幾個月內提高產量，以完成該訂單以及我們已經擁有的其他訂單。我們已安排並同意在 2023 年 2 月至 3 月期間向南非 GHH 以及英國 Jankle 向客戶交付貨物。

The first version of the EUV23 is on track with regards to testing. We've already covered more than 400 kilometers trouble-free with vehicle in difficult terrain. And now we're focused on extensive pre-production testing to define final third-party product supplies for the production ramp-up.

EUV23 的第一個版本的測試已步入正軌。我們的車輛已在困難地形中順利行駛了 400 多公里。現在，我們專注於廣泛的預生產測試，以確定最終的第三方產品供應以提高產量。

We've also completed supplier audits for major component suppliers. So, very much focused on the next stage with respect to Tembo, which is production and delivery ramp-up. We've also executed on financing and strategic transactions post the half-year balance date.

我們也完成了對主要零件供應商的供應商審核。因此，我們非常關注 Tembo 的下一階段，即生產和交付的提升。我們也在半年結算日後執行了融資和策略交易。

So, we've secured further bridge financing from our major shareholder AWN, and that's been followed by private investment out of the Emirates committed to Tembo directly for an initial $2 million, noting that VivoPower still maintains majority control of Tembo.

因此，我們已經從我們的大股東 AWN 那裡獲得了進一步的過橋融資，隨後來自阿聯酋的私人投資直接向 Tembo 提供了 200 萬美元的初始投資，並指出 VivoPower 仍然保持著對 Tembo 的多數控制權。

These funds will be used for Tembo's growth, including engineering, assembly, and delivery of conversion kits. We've also been taking advantage of the EV Winter, if you will. That's occurred over the last six months and accelerated in the past three months to recruit, on a selective basis, great talent from other EV companies who are either downsizing or ceasing business.

這些資金將用於 Tembo 的發展，包括工程、組裝和轉換套件的交付。如果你願意的話，我們也一直在利用電動車冬季。這種情況在過去六個月發生，並在過去三個月加速，有選擇地從其他正在裁員或停止業務的電動車公司招募優秀人才。

So, VivoPower and Tembo remain one of very few EV companies in the world that are in hiring mode at the moment. We are being very selective about it. And we're saying that there is an abundance of talent now available in the market that wasn't the case a year ago.

因此，VivoPower 和 Tembo 仍然是世界上極少數目前處於招募模式的電動車公司之一。我們對此非常有選擇性。我們說，現在市場上有大量的人才，而一年前並非如此。

Last but not least, very importantly, we are concluding on the Edenvale project, which has been clearly very disappointing and has hurt us financially over the last six months, given the climate change-related weather patterns that we've had to deal with there.

最後但並非最不重要的一點是，非常重要的是，我們即將完成伊登維爾項目，考慮到我們必須應對那裡與氣候變遷相關的天氣模式，該項目顯然非常令人失望，並且在過去六個月中為我們帶來了經濟損失。

So, at this stage, we expect to conclude that project at the end of February 2023, a few days' time. Weather appears to be positive at the moment so that should be on track. In addition to that, we're seeing our Kenshaw electrical business, which is part of Aevitas as well, start to really build up its order book and pipeline.

因此，在現階段，我們預計將在 2023 年 2 月底（幾天後）完成該專案。目前天氣似乎不錯，所以應該會步入正軌。除此之外，我們還看到我們的 Kenshaw 電氣業務（也是 Aevitas 的一部分）開始真正建立其訂單和管道。

And recently in the past few weeks, it's executed a three-year umbrella agreements with Glencore for reactive and scheduled maintenance, repair and overhaul, as well as the sale of critical electric motors in New South Wales, Australia. So, we expect to see further momentum from Kenshaw over the next six months.

最近幾週，它與嘉能可簽署了一項為期三年的總括協議，以進行反應性和定期維護、修理和大修，以及在澳洲新南威爾斯州銷售關鍵電動馬達。因此，我們預計 Kenshaw 在未來六個月內將看到進一步的勢頭。

Moving on to slide 5. This is the objectives and key results that we set for ourselves at the start of this fiscal year, back in July 2022. We have completed 8 out of the 18 that we set for ourselves to achieve. As I mentioned before, we're very much focused now on ramping up assembly and production as well as deliveries over the next 6 to 12 months. And we'll be looking to build up our team's capabilities in order to do that.

繼續看投影片 5。正如我之前提到的，我們現在非常關注在未來 6 到 12 個月內提高組裝和生產以及交付量。為此，我們將努力增強團隊的能力。

Jumping ahead to page 7, I will talk a little bit more about Tembo. So, in terms of the results for Tembo for the half year revenues of $0.9 million were achieved. Underlying EBITDA loss was negative $0.5 million, reflecting growth in OpEx investment, especially engineering talent.

跳到第 7 頁，我將更多地討論 Tembo。因此，就半年業績而言，Tembo 實現了 90 萬美元的收入。基本 EBITDA 損失為負 50 萬美元，反映出營運支出投資的成長，尤其是工程人才的投資。

As mentioned, the first version of our next-generation EUV23 platform became available on time in December, which is a material upgrade on the previous generation 28 kilowatt-hour battery system. Distribution partner network expanded with over 5,000 additional kits in the commitment and order book pipeline. And we've entered into the secondhand electrification and repowering market through deal with ETC in Kenya as well as our deal with Evolution in Australia and New Zealand.

如前所述，我們下一代EUV23平台的第一個版本已於12月按時上市，這是對上一代28度電池系統的材料升級。分銷合作夥伴網路得到了擴展，承諾和訂單管道中新增了 5,000 多個套件。我們透過與肯亞的 ETC 以及與澳洲和紐西蘭的 Evolution 的交易，進入了二手電氣化和再供電市場。

This is a very significant move for us, and it materially expands our addressable market considerably. We've also beefed up the talent pool and hired, amongst others, a new head of engineering, Phil Barker, since December. So, it's been a lot of progress on the Tembo front, both commercially, operationally, and with respect to sales pipeline and commitments globally.

這對我們來說是一個非常重要的舉措，它大大擴展了我們的目標市場。自 12 月以來，我們還擴充了人才庫，並聘請了新的工程主管 Phil Barker 等。因此，Tembo 在商業、營運以及全球銷售管道和承諾方面都取得了巨大進展。

Turning to page 8. Aevitas, as I mentioned before, the big disappointment here has been the unplanned and uncontrollable weather dynamic, which has turned what was supposed to be very profitable project for us at Edenvale into a loss-making one. And this obviously hurts coming off the [coattails] of Bluegrass, which affected our results in the previous six months.

翻到第 8 頁。這顯然會傷害我們在藍草音樂中的表現，這影響了我們過去六個月的表現。

So, we are very mindful now and very cautious about weather patterns and, but notwithstanding that, we still see a lot of potential for growth in the space given the build-out of solar across Australia. As I mentioned before, the potential business is starting to see a pickup and a rebound in terms of its pipeline and order book. And we're confident that business will continue to grow and resume its growth over the second half of this year and beyond.

因此，我們現在對天氣模式非常謹慎，但儘管如此，鑑於澳洲各地太陽能的建設，我們仍然看到該領域的巨大成長潛力。正如我之前提到的，潛在業務的管道和訂單量開始出現回升和反彈。我們相信，業務將在今年下半年及以後繼續成長並恢復成長。

Turning to page 9, sustainable energy solutions. We have pivoted our focus in that respect to mining and other industries to augment the customers and the partners' requirements for the Tembo vehicles. And in that regard, we have secured some capabilities through experienced advisors and partners.

翻到第 9 頁，永續能源解決方案。我們已將重點轉向採礦和其他行業，以增加客戶和合作夥伴對 Tembo 車輛的需求。在這方面，我們透過經驗豐富的顧問和合作夥伴獲得了一些能力。

And so, for example, we have identified an EV charging partner with hardware already being tested in collaboration with Tembo EUV. This is a global company. Distribution contract negotiations are ongoing at this stage, but we're confident of that. We will secure that and be able to offer a more holistic solution to our customers.

例如，我們已經確定了一家電動車充電合作夥伴，其硬體已經與 Tembo EUV 合作進行了測試。這是一家全球性公司。現階段分銷合約談判正在進行中，但我們對此充滿信心。我們將確保這一點，並能夠為客戶提供更全面的解決方案。

Moving on to page 10. Caret Solar. As foreshadowed a year ago, we were pivoting strategy for this to Power-to-X applications, including looking at bitcoin miners. Obviously, there's been a correction in the bitcoin market, which has slowed things down with respect to our strategy in relation to this portfolio.

轉到第 10 頁。正如一年前所預示的那樣，我們正在將這一戰略轉向 Power-to-X 應用程序，包括專注於比特幣礦工。顯然，比特幣市場出現了調整，這減緩了我們與該投資組合相關的策略。

However, in recent weeks, we've seen a reemergence of interest following the rebounds in the bitcoin price. In addition to that, we've seen interest reemerge again in terms of solar developers seeking to client to or partner with us on these projects. And this is in response to the Inflation Reduction Act, which has seen the income tax credit incentive being restored in the United States.

然而，最近幾週，隨著比特幣價格反彈，我們看到人們的興趣重新出現。除此之外，我們也看到太陽能開發商在這些專案上尋求客戶或與我們合作的興趣再次出現。這是對《減少通貨膨脹法案》的回應，該法案使美國恢復了所得稅抵免激勵措施。

So, that's a wrap up for me in terms of the half-year results of disappointing financial results due to weather and climate change. However, that's now have been [unstemmed], and [off] the back of very strong strategic and operational progress in the first half with confidence on executing on our objectives for the second half of the year.

因此，這對我來說是對由於天氣和氣候變遷而導致的令人失望的財務業績的半年結果的總結。然而，現在這種情況已經[未受阻]，並且[由於]上半年策略和營運方面取得了非常強勁的進展，我們對實現下半年的目標充滿信心。

Thank you, everyone, for joining. And that wraps up the half-year presentation for VivoPower. Thank you.

謝謝大家的加入。 VivoPower 的半年示範到此結束。謝謝。

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

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。