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VEEM LTD INVESTOR PRESENTATION MARCH 2020 1HFY26 HALF-YEAR RESULTS PRESENTATION 25 FEBRUARY 2026 PRINCESS YACHTS For personal use only
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2 THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR ADVERTISEMENT This document, including the information contained in this disclaimer, is not a prospectus, product disclosure statement or other disclosure document and does not constitute, or form any part of, an offer to sell, or a solicitation of an offer to buy, the Shares. This document does not constitute an invitation, offer or recommendation to apply for or purchase the Shares and does not contain any application form for the Shares. This document does not constitute an advertisement for an offer or proposed offer of the Shares. Neither this document nor anything contained in it shall form the basis of any contract or commitment and it is not intended to induce or solicit any person to engage in, or refrain from engaging in, any transacti on. No person is authorised to give information or make any representation in connection with any Public Offer which is not contained in this document. Any information or representation not so contained may not be relied on as being authorised by the Company, the Lead Manager or any person assoc iated with them. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States absent registration under the Securities Act or in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable U.S. state securities laws. DISTRIBUTION Distribution of this document outside Australia may be restricted by law. Persons who come into possession of this document who are not in Australia should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. NO LIABILITY The Company has prepared this document based on information available to it at the time of preparation, from sources believed to be reliable and subject to the qualifications in this document. To the maximum extent permitted by law, Limited Parties accept no responsibility or liability for the contents of his document and make no recommendation or warranties concerning any Public Offer. No representation or warranty, express o r implied, is made as to the fairness, accuracy, adequacy, validity, correctness or completeness of the information, opinions and conclusions contained in this document. To the maximum extent permitted by law, none of the Limited Parties accepts any responsibility or liability including, without l imitation, any liability arising from fault or negligence on the part of any person, for any loss whatsoever arising from the use of this document or its contents or otherwise arising in connection with it. Neither of the Lead Manager, nor any of its affiliates, related bodies corporate (as that term is defined in the Corporations Act) and their respective directors, employees, officers, representatives, agents, partners, consultants and advisers have authorised, permitted or caused the issue, lodgement, submission, despatch or provision of this document, and none of them make or purport to make any statement in this document and there is no statement in this document which is based on any statement by them. PAST PERFORMANCE Past performance information in this document is given for illustration purposes only and should not be relied upon as (and i s not) an indication of future performance.Actual results could differ materially from those referred to in this document. FORWARD-LOOKINGSTATEMENTS Certain statements, beliefs and opinions contained in this document, particularly those regarding the possible or assumed fut ure financial or other performance of the Company, industry growth or other trend projections are or may be forward looking state ments. Forward-looking statements can be identified by the use of 'forward-looking' terminology, including, without limitation, the terms 'believes', 'estimates', 'anticipates', 'expects', 'predicts', 'intends', 'plans', 'propose', 'goals', 'targets', 'aims', 'outlook', 'guidance', 'forecasts' , 'may', 'will', 'would', 'could' or 'should' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond the Company's ability to control or predict which may cause the actual results or performance of the Company to be materially different from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions and contingencies and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward looking statements may be based are reasonable. None of the Company, the Lead Manager or any other Limited Party, makes any representation or warranty as to the accuracy of any forward looking statements contained in this document. Forward-looking statements speak only as at the date of this document and the Limited Parties disclaim any obligations or undertakings to release any update of, or revisions to, any forward-looking statements in this document. All dollar values contained in this document are in Australian dollars (A$) unless otherwisestated. NOT FINANCIALPRODUCTADVICE No attempt has been made to independently verify the information contained in this document. You should make your own assessment in considering an investment in the Company and should not rely on this document. In all cases, you should conduct your own investigations and analysis of the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Company and its business, and the contents of this document. This document is not, and should not be construed as, a recommendation by the Company, related bodies corporate (as that term is defined in the Corporations Act), or any of their respective officers, employees, directors, shareholders, partners, representatives, agents, consultants or advisers or any other party referred to in this document (each a Limited Party and, together, the Limited Parties) to invest in the Company. The information in this document is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this document constitutes legal, financial, tax or other advice. The information in this document does not take into account the particular investment objectives, financial situation or needs of any person. You should seek legal, financial, tax and other advice appropriate to your jurisdiction. DISCLAIMER For personal use only
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3 Agenda 1. 2. 3. 4. Executive Summary Financial Results Outlook Operational Performance 5. Q&A6. 1HFY26 Highlights For personal use only
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4 1HFY26 Highlights Increased propeller capacity by over 25% with two new machines commissioned in FY22. Lead times did not reduce indicating strong demand. Revenue, EBITDA and NPAT down on the prior year due to raw materials and freight cost increases, general staff shortages and COVID impact on customers, suppliers and staff. Revenue $23.4m (Guidance $24m-$26m) Total Activity1 $23.3m EBITDA -$0.2m (Guidance -$1m-$1m) Cash $9.1m Net Debt $1.8m Undrawn Facilities $8.8m Operating Cashflow $4.0m EBITDA Margin -0.7% Interim Dividend Nil 1. Total Activity = Sales + change in WIP For personal use only
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5 Executive Summary • VEEM’s revenue for the half-year was $23.4m (down 30% on 1HFY25) with total activity (Sales + change in WIP) of $23.3m (down 32% on 1HFY25) due to lower gyro and timing of defence sales. • EBITDA and NPAT were -$0.2m and -$19.3m down on $3.9m and $0.9m respectively for 1HFY25, with EBITDA within guidance of -$1m to $1m. • VEEM 1HFY26 result includes a non-cash impairment of $24.8m associated with gyrostabilisers. • Cashflows from operations were strong at $4.0m, up 128% on 1HFY25. • $13.1m net proceeds from capital raising received in the half–year (Miocevich Family $1m) significantly strengthened the balance sheet and reduced net debt. • Net Debt at 31 December 2025 of $1.8m reduced by $11.9m after net capital raise proceeds of $13.1m. • Propeller revenue of $12.9m was down 9% with order intake improving in 2HFY26. • Revenue from defence was $3.7m down 50% on 1HFY25 largely due to the delay in receipt of ASC orders, received late in the half. Delivery into these orders ongoing and will extend into FY27. • Gyro Mark III launched which led to purchase hesitancy and is expected to lead to enquiries on hand converting to sales as the units become available. • FY26 transition year as costs incurred for products (Gyro Mark III & VEEM Extreme) and markets (US Defence) prior to their ramp up over time. • $3.5m in annualised overhead costs cut over the course of 1HFY26. For personal use only
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6 Long Term Growth Trajectory - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 $ Annual Revenue Since Listing For personal use only
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7 Our products and markets World’s best technology with large target markets, using automation and robotics to manufacture efficiently in Australia Gyrostabilisers • World’s best performing propellers • Export globally • Key customers are the world’s leading boat builders • VEEM Extreme launched 1HFY26 Market: Estimated propeller market size of US$2.6bn including US$0.3bn of new vessels each year Future: • Facility expansion • VEEM Extreme • Shaftlines • Other associated products Propulsion EngineeringDefence • Only major supplier of large gyros • Large barriers to entry • Market exists for commercial , defence and recreational uses • Mark III launched 1HFY26 Market: Estimated market size of US$1.1bn for new builds and US$13.5b for retrofits (current fleet) Future: • Deeper penetration into commercial market • Expansion to defence and defence related industries • Adoption escalation similar to smaller recreational gyros • Defence supplier for over 30yrs • Enhanced security rating • Sticky reliable long term revenue • USA defence supply chain entry underway – Pre AUKUS Market: Defence spending accelerating across the western world Future: • Hunter Class Frigate opportunities • Overseas T26 programs • AUKUS opportunities – Aus, US, UK • General increase in sovereign defence capacity and capability • Foundry led, precision-engineered products • Over 250 Alloys available • Highly accredited ISO9001; 14001; 450001; 27001; NATA and more Market: Infrastructure, oil and gas, mining and commercial clients. Mostly domestic. Future: • VEEM products such as Hollow Bar pushing into new markets • Increase in sovereign capacity and capability For personal use only
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 FINANCIAL RESULTS PRINCESS YACHTS For personal use only
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9 1HFY26 Profit FY26 – A transition year laying the foundation for higher future revenue and profitability 1HFY25 A$mil. 1HFY24 A$mil. % Change Revenue 23.4 33.6 -30% EBITDA* (0.2) 3.9 -104% Profit before Tax** (27.74) 0.9 -3,027% Net Profit after Tax (NPAT)** (19.23) 1.0 -1,989% Earnings Per Share (EPS)(cents) (13.67) 0.75 -1,923% *EBITDA is earnings before interest, tax, depreciation and amortisation and was within guidance of -$1m to $1m ** Includes one off non-cash impairment charge of $24.8m • 1HFY26 expected propeller revenue trough with signs of improvement to marine market emerging. • VEEM Extreme enquiries have been robust since launch with 1 st contract signed and initial deliveries beginning in 2HFY26. • ASC revenue was down 65% to $1.6m due to delay in receipt of orders which were received late in the half and are currently being delivered, underpinning 2HFY26. • Engineering products and services revenue (excluding defence) was down 5% but remained solid after a significant increase (13%) in the prior period. • Gyro Mark III expected to spur sales over calendar year 2026 as units become available across the range. • Result includes set up and preparatory (including security) costs for US defence revenue. In addition to development costs associated with Gyro Mark III and VEEM Extreme. • Pre-tax non-cash gyro impairment of $24.8m most significant contributor to loss for the half year. For personal use only
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10 Balance Sheet Fortified balance sheet post capital raising 31 Dec 2025 A$mil. 30 June 2025 A$mil. Change Current Assets 45.4 43.0 5.5% Non-Current Assets 37.8 54.2 -35.8% Total Assets 80.2 97.2 -17.5% Current Liabilities 15.0 20.7 -27.3% Non-Current liabilities 17.0 22.3 -23.6% Total Liabilities 32.0 42.9 -25.4% Net Assets 48.2 54.3 -11.3% Retained earnings 23.1 42.3 -45.5% Total Equity 48.2 54.3 -11.3% • $13.1m net proceeds of capital raising strengthened balance sheet and provided platform for investment into defence. • The Company held cash on hand of $9.1m at 31 Dec 2025 (30 June 2025: $0.8m) with a drawn overdraft facility of $nil (30 June 2025: $2.5m) and undrawn amount of $4.0m (30 June 2025 $1.5m). • Total unused facilities of $8.8m (30 June 2025: $3.4m). • Capex of $0.6m consisted of equipment and tooling for propellers ($0.4m funded by hire purchase contracts). • Product development costs fully impaired ($24.2m) to nil in addition to obsolete inventory identified as a result of introduction of Mark III ($0.6m). For personal use only
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11 Cash Flow Underlying business underpins solid cash flow 1HFY25 A$mil. 1HFY24 A$mil. % Change Cash flows from operations 4.0 1.8 +128% Cash flows from investing activities (1.3) (1.1) +22% Cash flows from financing activities 8.2 (2.5) n/a Net (decrease)/increase in cash 10.9 (1.8) n/a Cash at end of period, net of overdraft 9.1 (1.6) n/a • Cashflows from operations of $4.0m (1HFY25: $1.8m) were very strong as a result of commencement of the next phase of the ASC contract. • $14m (before costs) raised via the issue of new shares with $13.1m remaining after payment of costs associated with the issue. • $1.1m of HPs were repaid and there were $0.4m of new HPs to fund asset additions. • At 31 Dec 2025 VEEM had an undrawn overdraft facility of $4.0m and $2.4m undrawn on the trade facility. • Cash balance increased to $10.3m at 31 Jan 2026 alongside increase in operating activity. For personal use only
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12 Net Debt Capital raising significantly reduces net debt Net Debt1 31Jan26 A$mil.2 31Dec25 A$mil. 30Jun25 A$mil. Overdraft - - 2.5 Bank debt 5.5 6.1 6.5 Hire purchase liabilities 4.6 4.8 5.5 Less cash held (10.3) (9.1) (0.8) Net debt/(Net cash) (0.2) 1.8 13.7 • $13.1m net proceeds received from capital raising conducted during the half year. • Net debt has further decreased post the end of the half-year with the company moving to a net cash position of $0.2m based on defence revenue ramping up as ASC orders are fulfilled. • Strengthened balance sheet in anticipation of investments to support growth in defence and propulsion including arrival of a 3D sand printer and 3 CNC machines over calendar year 2026. • At 31 Dec 2025 VEEM had an undrawn overdraft facility of $4.0m and $2.4m undrawn on the trade facility providing significant liquidity. With an additional $2.4m of other undrawn facilities. 1. Doesn’t include AASB 16 leases 2. Unaudited For personal use only
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 OPERATIONAL PERFORMANCE PRINCESS YACHTS For personal use only
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14 Propulsion • Propulsion (non defence) sales of $13.0m were down 9% on 1HFY25 with signs of improvement in the marine market in late 1HFY26 and early 2HFY26. • VEEM Extreme launched to limited launch customers with significant enquiries received from other interested parties since. • VEEM Extreme propeller and flow aligned rudder 18.1% more efficient than standard parallel plate rudders and a class 1 propeller, testing has shown. • Manly Fast Ferries is a VEEM Extreme launch customer with contract signed during the half and deliveries into that contract commencing 2HFY26. • An increase in offerings is also a part of the growth strategy including shaflines, flow aligned rudders and associated equipment both using conventional materials and VEEM Extreme. • The new footprint expansion provides space for additional machining centres with three arriving over the course of calendar year 2026 and will assist in meeting potential demand from an improving marine sector. • Amendment to agreement with Sharrow to accelerate the roll out extended for a further 6 months. VEEM Extreme Propeller For personal use only
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15 Defence • Defence revenue of $3.7m in the half year was down 49% on the corresponding period largely as a result of the delay in receipt of ASC orders until late in the half. • VEEM continues to be a reliable, local source of highly sophisticated critical components for the Collins Class submarines. Revenue from the submarine program was $1.6m for the half-year (down 65% on 1HFY25). • With ASC orders now in hand, delivery has begun with revenue accelerating into 2HFY26 and delivery continuing into the first half of FY27. • VEEM is finalising acceptance of the blades and hubs for the Hunter Class Frigate Program (HCFP) demonstrator program for BAE Systems Australia although taking longer than envisioned. • Successful completion will confirm VEEM as a qualified supplier, making it one of only two suppliers globally to be able to produce this level of precision. • During the half progress was made into entering the US defence supply chain including achieving approved supplier status with HII and signing a 9-year MLA with Northrop Grumman for up to US$33m which can be increased by amendment. • The longest US government shut down in modern history from 1 October 2025 to 12 November 2025 hampered progress but VEEM continues to advance qualification efforts and is engaged with several US defence contractors. • VEEM continues to monitor developments with AUKUS and other defence initiatives in Australia and the US to ensure it is in the best position to win its share of precision manufacturing work programs. For personal use only
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16 Gyrostabilisers • Next generation Mark III gyro launched during the half year. • Key features include: Patented oiling system – Elimination of seals means no scheduled maintenance. Custom low friction bearings – ~20% reduction in power consumption for small and mid frame models. Internal fluid galleries - Removes 60 points of failure and reduces assembly time. • Purchasing hesitancy in 1HFY26 due to anticipated Mark III expected to lead to accelerating orders and sales going forward when combined with availability of the units. • Post launch of the Mark III which was a significant leap forward, development costs have peaked. • The Company continues to drive sales of its gyro range as the sole global supplier of large gyros for marine vessel stability applications, with several significant leads being pursued. For personal use only
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17 Engineering Products and Services • Engineering products and services revenue (excluding defence) of $8.2m was down 5% and remained solid in the context of a large 13% increase in 1HFY25. • VEEM’s traditional engineering business focuses on foundry-led, precision engineered products, including custom designs and its own hollow bar products (e.g. Forever Pipe). • Demand generally for foundry-led, precision engineered products remains steady and is expected to continue. • VEEM will continue to focus on recruitment and maintenance of labour resources through a number of initiatives. For personal use only
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 OUTLOOK PRINCESS YACHTS For personal use only
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19 Outlook – Propulsion & Defence Propulsion: • Global demand for VEEM’s propellers is expected to pick up into 2HFY26 and beyond as marine sector begins to recover. • VEEM Extreme to be advanced with launch customers. • Expansion of offerings including shaftlines, flow-aligned rudders and brackets. • Automation drive continuing to drive efficiencies and protect margins. Defence: • Defence revenue increasing in 2HFY26 as orders received from ASC are delivered into. • Entry into US defence supply chain delayed by government shut down but qualification work continues with several US defence contractors. • Completion of the Hunter demonstrator program will provide options to leverage off the high-level qualifications (incl security) with BAE/Kongsberg/Navy to supply other defence programs including overseas T26 programs. • Other defence work for a number of different prime contractors, including Austal, is also expected to continue. • VEEM is active and well positioned to take advantage of further defence work opportunities that may arise out of AUKUS and other defence programs. For personal use only
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20 Outlook – Gyro & Engineering Gyrostabilisers: • Mark III marketing and availability to drive sales going forward which have been reduced by purchase hesitancy in anticipation of the new model. • In addition to existing commercial and recreational market working to expand into defence and defence related sectors. • Understanding of the benefits of a VEEM gyro can deliver for commercial operators in terms of operational, HSE and commercial benefits continues to increase. Engineering: • Steady demand for the traditional engineering products and services is expected to continue. General: • Overhead cost reduction made in response to reduced revenue. On annualised basis $3.5m in overheads cut during 1HFY26. For personal use only
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21 Q & A For personal use only
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 APPENDICES PRINCESS YACHTS For personal use only
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23 Corporate Snapshot ASX Code VEE Share Price (24 February 2026) $0.65 Market Capitalisation (24 February 2026) $95.4m Shares on Issue 147m Substantial Shareholders % Miocevich Family 46.96% Perennial Value Management 14.68% Corporate Overview 0 0.5 1 1.5 2 2.5 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 VEE Share Price History Volume Close $ Vol. - Million For personal use only
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 Contact Trevor Franz Investor Relations Trevor.franz@lgcapital.com.au +61 406 882 736 PRINCESS YACHTS Tino Kapfumo CFO & Co Sec +61 8 9455 9355 Mark Miocevich Managing Director +61 8 9455 9355 @VEEM_Ltd VEEM_Ltd This ASX announcement was authorised for release by the Board of VEEM Limited. For personal use only