FY14 Results 25 February 2015

Transcription

1 FY14 Results 25 February 2015

2 Generating positive cash flow and profit Achieving growth across all key metrics Statutory Earnings: EBITDA of $1.2m Revenue up 79% to $45.1m NPAT of $476k Strong growth in underlying business: EBITDA* of $4.0m, up from $1.4m FY13 NPAT* of $3.2m EPS* of 0.26 cents per share Four consecutive quarters of positive operating cash flow *After adjustments excludes one-off impairment charges on inventories, sundry receivables, and VAT credit, and share based expenses 2

3 A very busy year operationally A number of exciting developments over the year Chinese footprint expanding, and international reach increasing Vmoto now has 16 retail stores in China, plus 15 distributors Agreements now in place in Vietnam, with samples sent to Taiwan and other countries JV formed to start producing three-wheel and four-wheel electric vehicles Acquisition of Nanjing Haiyong Gives Vmoto access to electric vehicle technologies central to the electric driving system, and makes an instant revenue contribution Cooperation agreement signed for Vmoto s patented handle bar technology Agreement signed with Changzhou Dusheng Electrical Equipment Co. Dusheng will pay a royalty to Vmoto based on sales of handle bars that use Vmoto s technology 3

4 Strong sustainable growth Continuing to achieve sustainable growth $m Revenue FY12 FY13 FY14 $m EBITDA FY12 FY13 FY14 Revenue grew by 79% in FY14 The company is extending its reach into new markets, allowing revenue to grow at a rapid rate Underlying EBITDA* of $4.0m, up 179% on FY13 *After adjustments excludes one-off impairment charges on inventories, sundry receivables, and VAT credit, and share based expenses FY12 and FY13 calculated on an annualised basis from half year reporting 4

5 Growth across all key financial metrics $m Generating profits and cash NPAT FY12 FY13 FY14 $m Operating Cash Flows FY12 FY13 FY14 Underlying NPAT* grew by 466% Highest monthly profit to date recorded for October 2014 with underlying NPAT of approx. $537k Four consecutive quarters of operating cash flow $430k generated in 4Q14 *After adjustments excludes one-off impairment charges on inventories, sundry receivables, and VAT credit, and share based expenses FY12 and FY13 calculated on an annualised basis from half year reporting 5

6 Strong balance sheet Key balance sheet items (A$m) 31 Dec Dec 13 Cash Other assets Total assets Borrowings Other liabilities Total liabilities Total equity Debt reduced, assets increased by $7.1m Inventory up $0.8m to $6.0m due to increased production levels to meet demand Total operating facility drawn down was $4.7m and operating facility available was $2.0m Other liabilities include $0.9m of funds received for exercising listed options but shares not yet issued at 31 December 2014 and $1.2m of deposits from customers 6

7 Production and sales continues to grow 7

8 Production and sales growth Production and sales continues to grow as the company expands 100,000 80,000 60,000 40,000 20,723 28,118 34,350 Vmoto OEM Production and sales expected to increase to >93,000 units in 2015 Current production mostly consists of two-wheel vehicles Estimated production capacity of c300,000 electric two-wheel vehicles per annum (depending on model) 20,000 42,051 48,090 59,000-6,222 6,249 FY12 FY13 FY14 FY15f 8

9 Well positioned to ramp up over the next three to five years Production facility has capacity to handle increased demand 30,000sqm state of the art manufacturing facility in Nanjing, China - wholly owned, fully paid for, equipped plant in key industrial zone - currently running at less than 30% utilisation - no short term infrastructure requirements Operates under Chinese manufacturing license significant intangible value - Expected to open up further opportunities for consolidation within China Equipped to handle the eventual production of three- and four-wheel electric vehicles 9

10 A year of expansion and growth 10

11 Expanding into high margin markets Currently 16 company owned retail stores, plus 15 Chinese distributors and dealers... as well as progressing higher margin international distribution 11

12 Expanding into high margin markets Over the past twelve months, Vmoto has delivered products or samples to: Brazil Belgium Mexico Croatia Denmark Malaysia Japan Nepal Sri Lanka Netherlands Canada Indonesia Vietnam Iran Taiwan South Africa Italy South Korea Thailand Hong Kong Greece 10,000 8,000 6,000 4,000 2,000 0 International Unit Sales 4,472 FY13 9,121 FY14 12

13 Nanjing Haiyong acquisition Vmoto acquires Nanjing Haiyong Electric Technology Co. Nanjing Haiyong is an advanced electronic technology company focused on producing controllers, a key component in electric vehicle driving systems The acquisition gives Vmoto access to electric vehicle technologies central to the electric driving system Benefits to Vmoto include: Enables Vmoto to market all of its applications to its own customers Fast-tracks the development of its electric driving system Delivers an instant contribution to revenue 13

14 Patented handle bar technology agreement Cooperation Agreement signed with Changzhou Dusheng Electrical Equipment Co. Agreement signed with the third largest handle bar manufacturer in China Dusheng will pay a royalty to Vmoto based on the sales volume of handle bars that use Vmoto s patented technology in EV handle bar to control the entire EV This should fast-track the penetration of Vmoto s technology to the market through spare parts manufacturers sales channels Royalties expected to contribute to revenue in FY16 14

15 Joint venture to enter electric three-wheel and four-wheel vehicle markets New JV formed with a number of experienced partners in China s electric vehicle market New JV will focus on design, manufacture and distribution of electric three-wheel and four-wheel vehicles for Chinese domestic and international markets Vmoto will own a 20% equity interest in the new JV at an initial cost of up to $1.5m Year 1 production and distribution forecast at between 20,000 and 50,000 three-wheel and four-wheel vehicles Capitalises on demand for electric vehicles, which is driven by environmental reasons Three-wheel EV production in China has grown from 500,000 units in 2004 to 10 million units in 2013* Annual demand for four-wheel electric vehicles in China predicted to grow to 820,000 units in 2020** Source: * Electric Three-Wheel Vehicle Market & Outlook Research Report **. Ipsos 15

16 Outlook for FY15 International growth, targeting high margin opportunities Continued focus on international sales 9,121 units sold to international markets in 2014 Development and production of new three- and fourwheel electric vehicles as part of the JV R&D and product innovation to continue, with a new model arriving in FY15 Expanded distribution channels in China and the rest of Asia, with a focus on securing new distributors Expecting to produce between 90,000 and 95,000 twowheel units 16

17 Summary An exciting period lies ahead FY14 profit and cashflows FY15 benefits of scale to flow Increased sales Extended brand reach Capitalise on growing demand Target higher margin international sales Underlying NPAT of $3.2m Increase Foundations NPAT in place Expand product line through JV First cash flow positive year Large increase in profit Continue with R&D program Further extend brand awareness 17

18 Global cooling, one kilometre at a time

19 Appendices 19

20 Vmoto s evolution 2009 Vmoto completes manufacturing facility and production begins. The company acquires E-Max, a German electric scooter manufacturer Vmoto adds to lucrative supply agreements already secured, winning PowerEagle Electric OEM contract worth $86m 2013 Vmoto launches its own 1 st two wheel electric scooters in China and opens flagship store to overwhelming success 2014 Vmoto extends brand reach internationally and acquires Nanjing Haiyong. The company also enters a JV focused on three- and four-wheel EV markets, and signs a co-op agreement with Changzhou Dusheng. Distributor Manufacturer Aggressive expansion into market 20

21 Strong competitive position in world market No. 2 global vendor and clear contender to be leader Global electric scooter market has developed two distinct vendors: - High-powered, higher priced scooters in North / South America and Europe - Those with cost structures suitable for price-sensitive Asia- Pacific Vmoto is one of few vendors that have found a path to compete in both markets with multiple product options Source: Navigant Research Leaderboard Report: Electric Scooters 4Q

22 Key customers Name PowerEagle (China) E.On (Czech) Nimag (Netherlands) Nemax (Italy) KLD Energy Technologies (Worldwide) PT Garansindo Technologies (Indonesia) Description Chinese company based in Shanghai, China and specialises in electric bicycles/scooters/ motorcycles. Brand name well known in China for product development and quality control A global top 500 company and has more than 85,000 employees and generated just under EUR112 billion in total sales in Electric Mobility a leading part of their future strategy Already number one in the Netherlands electric scooter market (the largest in Europe). Importer of Suzuki cars, motorbikes and marine for Netherlands. Part of the Louwmann Group, a leading automotive distributor in Europe, which has a turnover in excess of 2bn per year Sole importer of Vmoto s E-Max electric scooters for Italy, a country wide dealer network and with key customers such as TNT Post Italy KLD designs and develops electric motor systems for electric vehicles. Vmoto has close relationship with KLD and supply to them on Semi Knocked Down basis PT. Garansindo Technologies is a subsidiary company of PT. Garansindo Inter Global in Indonesia, which is the Indonesian sole general distributor for the premium automobile product brands Chrysler, Jeep, Dodge and Fiat Imperial Green Mobility (Southern Africa) Part of Imperial Group which was founded in 1948 and had over 47,000 employees spanning several industries in 14 countries Euro Ebike (Vietnam) Kentfa (Taiwan) Euro Ebike supplies green vehicles in Vietnam and Indochina. It owns international brands including Hyundai E-Bike and Matra-e Kentfa was established in Taiwan in 2001 and focuses on distribution, research and development of electric vehicles and technologies. Kentfa built a number of Electric Vehicle Battery Exchange Stations in Kaohsiung and has signed agreement with Taiwan s Department of Environmental Protection to build another 30 large scale Electric Vehicle Battery Exchange Stations in Kaohsiung AMSDG (Australia) Sole importer of Vmoto E-Max electric scooters for Dominos Pizza in Australia. 22

23 Vmoto in China 23

24 Disclaimer IMPORTANT NOTICE The information contained in this presentation is current as at 25 February 2015 and is provided by Vmoto Limited (ABN ) ( Vmoto ) as a summary document for information purposes only. Any forward looking statements included in this presentation involve subjective judgment and analysis and are subject to uncertainties risks and contingencies, many of which are outside the control of and may be unknown to Vmoto at the time of preparing this presentation. Actual future events may vary materially from the forward looking statements and the assumptions on which these statements are based. Recipients of this information are cautioned not to place undue reliance on such forward looking statements. The information contained in this presentation is provided in good faith, however, Vmoto makes no representation or warranty as to the accuracy, reliability or completeness of the information. To the extent permitted by law, Vmoto and its officers, employees, related bodies corporate and agents, disclaim all liability, whether direct, indirect or consequential, and whether or not arising out of the negligence, default or lack of care of Vmoto and/or any of its agents, for any loss or damage suffered by a recipient or any other persons, arising out of or in connection with any use or reliance on this presentation or information. 24

25 Contact Charles Chen, Managing Director +61 (8) Olly Cairns, Non-Executive Director +61 (8)