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VEEM LTD INVESTOR PRESENTATION MARCH 2020 FY26 RESULTS PRESENTATION 27 AUGUST 2026 PRINCESS YACHTS
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DISCLAIMER 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 or any person associated 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 limitation, 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. PAST PERFORMANCE Pastperformanceinformationin thisdocumentis givenfor illustrationpurposesonlyand shouldnot be relieduponas (andis not)an indicationof futureperformance. Actualresultscoulddiffermateriallyfromthosereferredto in thisdocument. FORWARD-LOOKINGSTATEMENTS Certainstatements,beliefs and opinionscontainedin this document,particularlythose regardingthe possibleor assumed future financialor other performanceof the Company,industrygrowth or other trend projectionsare or may be forward looking statements. Forward-looking statementscan be identifiedby the use of 'forward-looking' terminology,including, withoutlimitation,the terms'believes','estimates','anticipates','expects','predicts','intends','plans','propose','goals','targets', 'aims','outlook','guidance','forecasts', 'may','will','would','could'or 'should'or, in eachcase,theirnegativeor othervariations or comparableterminology. Theseforward-lookingstatementsincludeall mattersthat are not historicalfacts. By theirnature, forward-lookingstatementsinvolveknownand unknownrisks,uncertaintiesand otherfactorsbecausethey relateto events anddependon circumstancesthatmay or may not occurin the future,assumptionswhichmay or may not provecorrect,and may be beyondtheCompany'sabilityto controlor predictwhichmay causethe actualresultsor performanceof theCompany to be materiallydifferentfromthe resultsor performanceexpressedor impliedby suchforward-lookingstatements. Forward- lookingstatementsarebasedon assumptionsandcontingenciesandarenot guaranteesor predictionsof futureperformance. No representationis made that any of these statementsor forecastswill come to pass or that any forecastresult will be achieved. Similarly,no representationis giventhatthe assumptionsuponwhichforwardlookingstatementsmay be basedare reasonable. Noneof the Company or anyotherLimitedParty,makesanyrepresentationor warrantyas to the accuracyof any forward looking statements contained in this document. Forward-looking statements speak only as at the date of this documentand the Limited Parties disclaimany obligationsor undertakingsto release any update of, or revisionsto, any forward-lookingstatementsin this document. All dollarvaluescontainedin thisdocumentare in Australiandollars(A$) unless otherwisestated. NOTFINANCIALPRODUCTADVICE No attempthas been made to independentlyverifythe informationcontainedin this document. You shouldmake your own assessmentin consideringan investmentin the Company and should not rely on this document. In all cases, you should conduct your own investigationsand analysis of the financial condition, assets and liabilities, financial position and performance,profits and losses, prospectsand businessaffairs of the Companyand its business,and the contentsof this document. This document is not, and should not be construedas, a recommendationby the Company, related bodies corporate (as that term is defined in the CorporationsAct), or any of their respective officers, employees, directors, shareholders,partners,representatives,agents,consultantsor advisersor anyotherpartyreferredto in thisdocument(eacha LimitedParty and, together,the LimitedParties)to investin the Company. The informationin this documentis of a general natureand does not constitutefinancialproductadvice,investmentadviceor any recommendation. Nothingin thisdocument constituteslegal, financial,tax or other advice. The informationin this documentdoes not take into accountthe particular investmentobjectives,financialsituation or needs of any person. You should seek legal, financial,tax and other advice appropriateto yourjurisdiction.
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AGENDA 3 1. 1HFY26 Highlights 2. Executive Summary 3. Financial Results 4. Operational Highlights 5. Outlook 6. Q&A
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FY26 HIGHLIGHTS 41. Total Activity = Sales + change in WIP REVENUE $51.7m (Guidance $50m – $52m) Cash $9.4m Operating Cashflow $4.8m TOTAL ACTIVITY1 $54.2m Net Debt $1.2m EBITDA Margin 6.9% EBITDA $3.6m (Guidance $3.25m – $3.75m) Undrawn Facilities $7.5m Final Dividend Nil
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EXECUTIVE SUMMARY 5 • VEEM’s revenue for FY26 was $51.7m (upper end of guidance) down on $68.6m in FY25 due to lower gyro sales and delay in receiving ASC orders. • EBITDA for FY26 was $3.6m down on $9.1m in FY25 and at the upper end of guidance provided. • Cashflows from operations were strong at $4.8m as delivery into the ASC contract began and propeller orders accelerated into 2HFY26. • Net Debt at 30 June 2026 of $1.2m reduced by $12.5m after net capital raise proceeds of $13.1m and $2.4m of additional capital equipment debt. • The first half was characterized by a slow down in the marine market which is now improving and delayed ASC orders which are currently being delivered into. • As a result 2HFY26 sales were up 21% ($28.3m vs $23.4m) and 2HFY26 EBITDA was $3.8m vs -$0.2m in 1HFY26. • Recovery in the marine market has led to increased propulsion orders in 2HFY26 which has continued into FY27. • Factory extension construction complete with 3 new CNC machines delivered and currently undergoing installation and commissioning which is scheduled to complete in September 2026. • 3D Printer installed and commissioned with remaining $600k (excl. GST) government grant funds received.
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OUR PRODUCTS AND MARKETS 6 PROPULSION DEFENCE GYROSTABILISERS ENGINEERING World’s best technology with large target markets, using automation and robotics to manufacture efficiently in Australia • World’s best performing propellers • Export globally • Key customers are the world’s leading boat builders • VEEM Extreme launched FY26 • Defence supplier for over 30yrs • Enhanced security rating now completed • Sticky reliable long term revenue • USA defence supply chain entry underway – Pre AUKUS • Only major supplier of large gyros • Large barriers to entry • Market exists for commercial , defence and recreational uses • Mark III launched FY26 • Foundry led, precision-engineered products • Over 250 Alloys available • Highly accredited ISO9001; 14001; 450001; 27001; NATA and more Market: Estimated propeller market size of US$2.6bn including US$0.3bn of new vessels each year Future: • Facility expansion (3 CNC machine commissioning) • VEEM Extreme • Shaftlines • Other associated products 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 Market: Significant market size estimated at greater than US$1bn. Market: Infrastructure, oil and gas, mining and commercial clients. Mostly domestic. Future: • VEEM products such as Hollow Bar pushing into new markets • Increase in sovereign capacity and capability • 3D printing for specialised castings Future: • Deeper penetration into commercial market • Expansion to defence and defence related industries • Adoption escalation similar to smaller recreational gyros
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 FINANCIAL RESULTS PRINCESS YACHTS
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FY26 PROFIT 8 FY26 – A transition year laying the foundation for higher future revenue and profitability FY26 A$mil. FY25 A$mil. % Change Revenue 51.7 68.6 -25% EBITDA* 3.6 9.2 -61% Profit before Tax** (26.6) 3.1 -958% Net Profit after Tax (NPAT)** (17.8) 3.0 -693% Earnings Per Share (EPS)(cents) (12.4) 2.2 -663% *EBITDA is earnings before interest, tax, depreciation and amortisation and was within guidance of $3.25 to $3.75m | ** Includes one off non-cash impairment charge of $24.8m Most significant reduction in revenue vs FY25 was Gyro (-$9.5m) however Gyro Mark III expected to spur sales into FY27 as units become available across the range. Defence was down $3.3m vs FY25 due to delay in receiving ASC orders leading to 2HFY26 revenue of $8.6m (+130%) vs 1HFY26 of $3.7m. ASC expected to continue to be strong in 1HFY27. Gyro Mark III expected to spur sales into FY27 as units become available across the range. Q2-3FY26 was propeller revenue trough with improvement to marine market in late Q3FY26 continuing into Q4FY26 and so far into FY27. VEEM Extreme enquiries have been robust since launch with 1st contract signed and initial deliveries to Manly Fast Ferries beginning in 2HFY26. 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 $24.8m most significant contributor to loss for the half year.
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BALANCE SHEET 30 JUNE 2026 9 Strong balance sheet post capital raising and profitable 2HFY26 30 June 2026 A$mil. 30 June 2025 A$mil. % Change Current Assets 47.1 43.0 9.5% Non-Current Assets 35.5 54.2 -34.5% Total Assets 82.6 97.2 -15.0% Current Liabilities 15.5 20.6 -24.8% Non-Current liabilities 17.4 22.3 -22.0% Total Liabilities 32.9 42.9 -23.3% Net Assets 49.7 54.3 -8.5% Retained earnings 24.5 42.3 -42.1% Total Equity 49.7 54.3 -8.5% $13.1m net proceeds of capital raising strengthened balance sheet and provided platform for investment into defence. The Company held cash on hand of $9.4m at 30 June 2026 (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). 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). Total unused facilities of $7.5m (30 June 2025: $3.4m). Capex of $2.5m consisted of 3D printer and equipment & tooling for propellers ($2.4m funded by hire purchase and asset finance contracts).
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CASH FLOW FY26 10 Underlying business underpins solid cash flow FY26 A$mil. FY25 A$mil. % Change Cash flows from operations 4.8 2.9 +66% Cash flows from investing activities (1.1) (0.4) +175% Cash flows from financing activities 7.4 (4.4) n/a Net increase / (decrease) in cash 11.1 (1.9) n/a Cash at end of period, net of overdraft 9.4 (1.7) n/a Cashflows from operations of $4.8m (FY25: $2.9m) were strong as a result of commencement of the next phase of the ASC contract. $14.0m (before costs) raised via the issue of new shares with $13.1m remaining after payment of costs associated with the issue. $2.4m of HPs were repaid and there were $2.4m of new HPs and an asset finance facility to fund asset additions. At 30 June 2026 VEEM had an undrawn overdraft facility of $4.0m and $3.1m undrawn on the trade facility.
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NET DEBT – FY26 11 Capital raising significantly reduces net debt 30 Jun 26 A$mil. 30 Jun 25 A$mil. Overdraft - 2.5 Bank debt 6.9 6.5 Hire purchase liabilities 3.7 5.5 Less cash held (9.4) (0.8) Net debt 1.2 13.7 1. Doesn’t include AASB 16 leases. Net debt1 reduced by $12.5m after adding $2.4m in hire purchase liabilities and asset finance facilities for the purchase of PPE. $13.1m net proceeds received from capital raising conducted during the half year. $1.8m better off after taking into account asset liabilities taken on. Strengthened balance sheet in anticipation of investments to support growth in defence and propulsion including arrival of a 3D printer (commissioned) and 3 CNC machines (installation and commissioning scheduled to complete September 2026). At 30 June 2026 VEEM had an undrawn overdraft facility of $4.0m and $3.1m undrawn on the trade facility providing significant liquidity.
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 OPERATIONAL HIGHLIGHTS PRINCESS YACHTS
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PROPULSION 13 Propulsion (non defence) sales of $24.9m in FY26 were down 7% on FY25 with the recovery in the marine market seen in 2HFY26 remaining sustained into Q1FY27. The new world beating VEEM Extreme propellers and shaft lines were launched to limited key customers with significant enquiries received from other interested parties since. VEEM Extreme has showed an impressive 24.1% less fuel burn and carbon emissions across propellers (11.9%); flow aligned rudders (6.2%) and twisted brackets (6.0%) versus a standard set up. All verified with Lloyds Classification Society on board. Smaller shafts to follow in 1HFY27. Manly Fast Ferries is a VEEM Extreme launch customer with contract signed in 1HFY26 and first deliveries into that made in 2HFY26. They showed an 8.3% fuel burn reduction just with the VEEM Extreme propellers (existing VEEM customer)! Modelling forecasts rudders reducing approx. 7% more. 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. Amendment to agreement with Sharrow to accelerate the roll out under negotiation for further extension. Not to be left behind, Sharrow will have the option of VEEM Extreme alloy advantages as well.
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DEFENCE 14 Defence revenue of $12.3m in FY26 was down 21% on FY25 largely as a result of the delay in receipt of ASC orders until late in 1HFY26 which began delivery in 2HFY26 and drove significantly increased Defence revenue in 2HFY26 ($8.6m) vs 1HFY26 ($3.8m) and will remain strong in 1HFY27. VEEM continues to be a reliable, local source of highly sophisticated critical components for the Collins Class submarines which have been approved for LOTE to remain in service to 2040s. VEEM has received final technical specification for the blades and hubs for the Hunter Class Frigate Program (HCFP) demonstrator program for BAE Systems Australia. Moving to final tender stage. 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. Work continues to enter the US defence supply chain with VEEM already achieving approved supplier status with HII, EB, Blue Forge and signing a 9-year MLA with Northrop Grumman for up to US$33m which can be increased by amendment. VEEM continues to receive orders for qualification purposes. 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.
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GYROSTABILISERS 15 Revolutionary, next generation Mark III gyro launched in FY26. Key features include: • No scheduled maintenance - New oiling system (Patent pending) eliminates seals and also results in 20% less power usage. • 20% additional reduction in power consumption – Achieved via custom low friction bearings for small and mid frame models. • Reduced assembly time – Due to Internal fluid galleries. Post launch of the Mark III which was a significant leap forward, development costs have peaked. The significant slow down in the global marine sector meant no sales of gyros in 1HFY26 however as it recovered there was a sale of 1 x VG140 in 2HFY26 and currently the order book is $1.0m with sales expected to increase into FY27. 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 including in the defence sector.
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GYROSTABILISERS 16 Mark II vs Mark III – Simpler - Better Mark II vs Mark III pictured at recent Indian Ocean Defence and Security Conference – Perth – 26-28 May 2026
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ENGINEERING PRODUCTS AND SERVICES 17 Engineering products and services revenue (excluding defence) of $14.3m in FY26 was down 14% on FY25 as skills in 2HFY6 were redirected to higher demand defence work. 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 but the Company is monitoring the potential impact of the higher cost environment especially since the onset of the conflict in the middle east. VEEM will continue to focus on recruitment and maintenance of labour resources through a number of initiatives in order to service the current pipeline of work.
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FACTORY EXTENSION 18 Construction of factory extension complete and hand over in June 2026 (~1,000m2). 3 CNC machines delivered with installation & commissioning under way and due for completion in September 2026. Capacity exists beyond the current 3 machines for continued expansion of machines and equipment in line with demand expected to increase including from VEEM Extreme. 3D printer delivered; installed and commissioned in FY26 with remaining $600k of $1m grant received. The 3D printer provides additional capabilities which are anticipated to improve accuracy and speed which is expected to improve margins and also the scope of VEEM’s offering to existing and new customers.
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 OUTLOOK PRINCESS YACHTS
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OUTLOOK – PROPULSION & DEFENCE 20 PROPULSION DEFENCE • Global demand for propellers expected to continue to increase. • Monitoring impact of Middle East conflict. • VEEM Extreme to be advanced with launch customers. • Expansion of offerings to including shaftlines & rudders. • Drive to automate continues unabated. • Defence remaining strong as orders received from ASC continue to be delivered into FY27. • Continued qualification work as part of entry into US Defence. • Hunter – moving to final tender stage. • High-level qualifications to be leveraged with BAE/Kongsberg/Navy to supply other defence programs. • Other defence work for different prime contractors, including Austal, is also expected to continue. • VEEM is active and well positioned to take advantage of opportunities that may arise out of AUKUS etc.
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OUTLOOK – GYRO & ENGINEERING 21 GYROSTABILISERS ENGINEERING • Mark III marketing and availability to drive sales in FY27. • Growth expected in existing commercial and recreational sectors. • Working to expand into defence and defence related sectors. • Benefits of a VEEM gyro for operational & HSE better understood. • Steady demand expected to continue. • 3D printing to reduce costs. GENERAL • Benefits of reduced overhead flowing. • Additional capacity allows for growth.
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Q&A 22
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CORPORATE OVERVIEW 23 VEE Share Price HistoryCorporate Snapshot ASX Code VEE Share Price (26 August 2026) $0.57 Market Capitalisation (26 August 2026) $83.6m Shares on Issue 147m Substantial Shareholders % Miocevich Family 46.9% Perennial Value Management 14.9% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 - 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Vol. Share Price Volume Close Price
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VEEM LTD INVESTOR PRESENTATION MARCH 2020 CONTACT PRINCESS YACHTS Mark Miocevich Managing Director +61 8 9455 9355 Tino Kapfumo CFO & Co Sec +61 8 9455 9355 Trevor Franz Investor Relations Trevor.franz@lgcapital.com.au +61 406 882 736 @VEEM_Ltd VEEM_Ltd This ASX announcement was authorised for release by the Managing Director of VEEM Limited.