VIVOPOWER HALF-YEAR RESULTS PRESENTATION FOR THE 6 MONTHS ENDED DECEMBER 31, 2020 February 24, 2021 Disclaimer This presentation contains "forward-looking statements" relating to VivoPower International PLC ("VivoPower") within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, estimates relating to our future energy development and investment activities. You can identify these statements by forward-looking words such as "may," "expect," "anticipate," "contem ...

Financial Data and Key Metrics Changes - Revenues declined by 28% year-on-year to $22.7 million, primarily due to strict COVID-19 lockdowns in Australia [3] - Gross profit decreased by 18% year-on-year to $4.6 million, but gross profit margin improved to 20% from 18% in the previous year [4] - EBITDA declined to $1.2 million from $4.2 million in the previous corresponding period [4] - Basic EPS was negative $0.03 compared to positive $0.08 in the previous period [38] - Unrestricted cash increased from $2.8 million to $17.4 million as of December 31 [39] - Net debt declined from $23.1 million to $8.3 million, reflecting an improved credit profile [40] Business Line Data and Key Metrics Changes - Aevitas revenues were $22.3 million, down 29% year-on-year, with gross profit of $4.6 million compared to $5.6 million previously [11] - Underlying EBITDA for Aevitas was $3.3 million, down 80% [11] - Tembo's revenue contribution was $0.4 million for the half-year period, reflecting only two months of contribution post-acquisition [21] Market Data and Key Metrics Changes - The U.S. portfolio's net megawatt capacity is 892, slightly down from the original economic share of 922 [15] - The outlook for the U.S. portfolio has improved with the Biden administration's support for renewable energy [16] - Successful sales of smaller solar projects in Austria, including Daisy Hill and Yoogali Solar, are expected to be profitable [16] Company Strategy and Development Direction - The Tembo acquisition has transformed VivoPower's growth trajectory, moving to 100% ownership in February 2021 [6] - A major partnership with GB Auto to distribute Tembo electric vehicles in Australia is expected to generate up to $250 million in revenue over four years [6][20] - The company aims to provide holistic decarbonization solutions, including electric vehicles, site electrification, and battery lifecycle management [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that strict COVID lockdowns affected results but expressed strong growth outlook due to the Tembo acquisition [3] - Conditions have improved since the start of 2021, and the outlook for Aevitas remains buoyant [12] - The partnership with Tottenham Hotspur is expected to catalyze further interest in VivoPower's offerings in the UK market [30] Other Important Information - VivoPower established an advisory council to support growth plans, particularly for Tembo [31] - The company has expanded its team with key hires in sales and sustainable energy solutions [33] - VivoPower was awarded the Real Readers top 50 impact awards, ranking 47th globally [34] Q&A Session Summary - The Q&A session concluded without any specific questions or answers being recorded [41]

Financial Performance - Group revenue for the six months ended December 31, 2020, was $22.7 million, a decline of 28% from $31.4 million in the same period of the previous year[14]. - Gross profit decreased by 17% year on year to $4.6 million, while gross profit margin improved to 20% from 18%[7]. - Underlying adjusted EBITDA was $1.2 million, down from $5.5 million in the prior corresponding period[7]. - Revenue from the Critical Power Services segment was $22.2 million, a decrease of 29% compared to $31.3 million in the prior year, primarily due to COVID-19 impacts[18]. - Revenue from the newly acquired Electric Vehicles business for November and December 2020 was $0.4 million[19]. - Total revenue from Australia was $22.2 million, down $9.1 million from $31.4 million in the previous year[20]. - Revenue from contracts with customers decreased by 27.8% to $22.7 million for the six months ended December 31, 2020, compared to $31.4 million in the prior year[74]. - Operating profit fell by 108.1% to a loss of $0.4 million, down from a profit of $4.6 million in the corresponding prior period[74]. - Profit before income tax for the six months ended December 31, 2020, was a loss of $16,000 compared to a profit of $2,173,000 in 2019, indicating a significant decline[78]. - Total comprehensive loss for the period was $382,000, with retained earnings decreasing to $(43,705,000) as of December 31, 2020[80]. Acquisitions and Partnerships - The acquisition of 51% of Tembo e-LV B.V. was completed on November 5, 2020, with the remaining 49% acquired post-balance sheet date on February 2, 2021[7]. - VivoPower executed a landmark partnership deal with GB Auto in Australia worth up to $250 million over the next four years[5]. - The company announced a marquee deal with Tottenham Hotspur FC to provide a full suite of sustainable energy solutions for their key infrastructure assets[6]. - The company acquired 51% of Tembo for $4.8 million, with plans to acquire the remaining 49% for $2.2 million plus shares[45]. - VivoPower completed the acquisition of the remaining 49% of Tembo for $2.2 million, bringing total ownership to 100%[70]. - The company secured a seven-year distribution agreement with GB Auto, expected to generate a minimum of $250 million over the initial four years[68]. Cost Management and Expenses - Cost of sales for the first half of the current fiscal year was $18.0 million, down from $25.8 million in the prior fiscal year, reflecting a decrease of 30%[21]. - General and administrative expenses increased by 39% year-on-year to $3.8 million, up from $2.8 million, due to increased headcount and share incentive awards[23]. - The loss on sale of assets was $0.3 million in the first half of the current fiscal year, compared to a gain of $2.7 million in the prior year[24]. - Finance income was $3.5 million, while finance expenses were $1.3 million, resulting in a net finance income of $2.2 million[30][31]. - The finance expense decreased significantly to $247,000 in 2020 from $1,632,000 in 2019, reflecting better debt management[78]. Assets and Cash Flow - Intangible assets increased by $6.2 million to $36.0 million, driven by $3.2 million in goodwill from the acquisition of Tembo and exchange rate movements[33]. - Cash and cash equivalents rose to $17.4 million from $2.8 million, primarily due to a net share capital raise of $26.4 million[44]. - The company completed a share capital raise generating gross proceeds of $28.8 million, with net proceeds of $26.4 million after costs[43]. - Total assets increased to $83.6 million as of December 31, 2020, up from $62.4 million as of June 30, 2020[76]. - Net cash used in operating activities increased to $6,746,000 in 2020 from $3,130,000 in 2019, reflecting higher operational costs[78]. - Cash and cash equivalents at the end of the period rose to $17,398,000 in 2020 from $2,751,000 in 2019, showing improved liquidity[78]. - The company experienced a net cash outflow from investing activities of $1,366,000 in 2020, compared to a net inflow of $803,000 in 2019[78]. Operational Developments - VivoPower's U.S. solar project portfolio has a combined potential electrical generating capacity of 1.8 GWdc, with 22 projects totaling approximately 963 MWdc discontinued due to various issues[61][62]. - J.A. Martin completed a contract for the 39 MWdc Molong Solar Farm, bringing its total completed and contracted solar farms to over 150 MWdc[54]. - The company refinanced its funding facilities, achieving a 38% reduction in costs and more flexible terms to support anticipated growth[52]. - Tembo's revenue was $0.4 million for the six months ended December 31, 2020, with a loss before tax of $0.5 million due to operational disruptions from COVID-19[67]. - The company reported a gain on solar development of $324,000 in 2020, a recovery from a loss of $2,707,000 in 2019[78]. - The decrease in trade and other receivables was $671,000 in 2020, down from $1,714,000 in 2019, indicating improved collection efforts[78]. - Non-controlling interest increased to $1,816,000 as of December 31, 2020, compared to $77,000 in the previous year, indicating growth in subsidiary investments[80].

Financial Performance - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[11]. - The company reported a revenue of $1.5 billion for the quarter, representing a 15% year-over-year increase[1]. - The company provided a positive outlook for the next quarter, projecting revenue growth of 15% to $1.725 billion[11]. - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, indicating a growth of 7% to 13%[1]. - Revenue from contracts with customers for the year ended June 30, 2020, was $48.71 million, an increase of 12.5% compared to $43.55 million in 2019[28]. - For the year ended June 30, 2020, total revenue was $29,343,000, a 31% increase from $22,417,000 in 2019[150]. - The company generated revenue of $48.7 million, a 12.5% increase from $43.5 million in the previous year[202]. User Growth and Engagement - User data showed an increase in active users to 10 million, up from 8 million last year, indicating a 25% growth in user base[12]. - User data showed a growth of 20% in active users, reaching 10 million users by the end of the quarter[1]. - New product launches included a software update that improved user engagement by 25%[1]. Market Expansion and Strategy - Market expansion efforts are underway in Europe, targeting a 30% increase in market share by the end of the year[12]. - The company is expanding its market presence in Europe, targeting a 30% increase in market share by the end of the fiscal year[1]. - The company plans to enter the commercial electric vehicle market, focusing initially on light electric vehicles in the mining and infrastructure sectors in Australia[39]. - The company is exploring expansion into international markets, which may involve significant risks including legal, political, and operational challenges[65]. Product Development and Innovation - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[12]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[11]. - Research and development expenses increased by 10% to $200 million, focusing on new technology innovations[1]. - VivoPower is exploring opportunities to develop battery energy storage assets alongside its solar developments due to increasing demand in the market[166]. Financial Health and Cost Management - Cost management strategies have led to a 10% reduction in operational expenses, improving overall profitability[12]. - Operating cash flow increased by 25% to $400 million, reflecting strong financial health[1]. - The gross margin improved to 60%, up from 55% in the previous quarter[1]. - General and administrative expenses decreased to $5.48 million in 2020 from $7.20 million in 2019, reflecting a reduction of 23.9%[28]. - Current liabilities decreased to $19.7 million as of June 30, 2020, from $29.1 million in 2019, indicating improved management of short-term obligations[30]. Acquisitions and Partnerships - The company has completed a strategic acquisition of a tech startup for $100 million to bolster its product offerings[11]. - The company completed an acquisition of a smaller tech firm for $300 million to enhance its product offerings[1]. - The company announced a new strategic partnership with a leading industry player to co-develop products[1]. - VivoPower's acquisition of VivoPower Australia and Aevitas for a total cash consideration of $10.1 million strengthens its market position in critical power services[127]. Customer Satisfaction and Performance - Customer satisfaction ratings have improved to 90%, reflecting a 5% increase from the previous year[12]. - The Critical Power Services segment saw revenue growth of $5.7 million, reaching $48.6 million, while solar revenues decreased to $0.1 million from $0.6 million[204]. Risks and Challenges - The company faces risks related to joint ventures, including potential revenue loss and difficulties in finding new partners if existing ventures are terminated[48]. - The company may experience delays or failures in entering into Power Purchase Agreements (PPAs) for solar projects, which could adversely affect revenue and cash flows[49]. - The company’s future projects may rely on long-term PPAs, and any inability of purchasers to fulfill contractual obligations could materially impact financial condition[50]. - The company faces competition from major players in the renewable energy services market, which may force price reductions to maintain market share[68]. - The company is exposed to foreign currency exchange risks due to operations in multiple currencies, which can affect reported financial results[78]. Regulatory and Compliance Issues - The company is subject to anti-bribery laws, and violations could lead to significant penalties and adversely affect its reputation and operations[81]. - The company is subject to various anti-corruption laws, including the U.K. Bribery Act and the U.S. Foreign Corrupt Practices Act, which impose significant compliance costs and risks[82]. - Compliance with evolving data privacy regulations, such as GDPR, imposes strict requirements and potential penalties, which could affect operational costs and legal liabilities[109]. Operational Disruptions - The COVID-19 pandemic has already caused operational disruptions, including employee stand-downs and redundancies, impacting demand and business performance[121]. - The company faced operational disruptions due to the COVID-19 pandemic, resulting in delays and adversely affecting profitability margins[142]. - Natural disasters and health epidemics, such as COVID-19, could materially disrupt operations and lead to significant adverse effects on business continuity[120].

Financial Data and Key Metrics Changes - Annual revenues for FY'20 were recorded at $48.7 million, primarily driven by growth in the Aevitas Critical Power Services business in Australia [5] - Gross profits increased by 28% year-over-year, attributed to margin improvements and a better pricing strategy [7] - Underlying EBITDA turned around from a loss of $3.8 million last year to a profit of $3.9 million in FY'20, excluding restructuring and non-recurrent charges [8] - Cash declined to $4.3 million from $7.1 million year-over-year, reflecting working capital drawdown and slowdowns in collections during COVID-19 lockdowns [10] - Net debt increased to $23.1 million, reflecting the reduction in cash balance and continued support from the major shareholder [11] Business Line Data and Key Metrics Changes - Aevitas, the Critical Power Services business, achieved strong revenue growth while also reducing overhead costs [7][8] - The company is pivoting towards a sustainable energy solution, including electric vehicles, which is expected to leverage its existing customer base of over 700 active clients [12][13] Market Data and Key Metrics Changes - The Australian market is experiencing strong tailwinds for renewable energy initiatives, supported by government actions [23][27] - The focus on electric vehicles and battery storage is expected to grow, with the Australian battery storage market becoming economically viable [37] Company Strategy and Development Direction - The strategic pivot includes a focus on electric vehicle (EV) solutions, battery leasing, retrofitting customer premises, and second-life applications for EV batteries [12][15][17] - The company aims to deliver a holistic three-pronged sustainable energy solution, emphasizing customer engagement and operational efficiency [15][49] - The board has been strengthened with technology and software capabilities to align with the new strategy [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed optimism about the recovery and growth in the Australian operations [6][23] - The company is focused on executing its strategy and expects to announce new developments in the coming weeks [63] Other Important Information - The company is in a turnaround phase for its U.S. solar portfolio and is looking to monetize its solar projects to fund the new EV strategy [34][56] - There is a strong emphasis on capital efficiency and optimizing the balance sheet to support growth initiatives [58][59] Q&A Session Summary Question: Are there any questions from participants? - No questions were raised during the session [61] Closing Comments - Management expressed gratitude for participation and highlighted the transition to a phase of hyper-scaling, emphasizing execution as the key focus moving forward [63]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended OR ☒ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring th ...