Ladies and gentlemen, thank you for standing by, and welcome to VivoPower International PLC FY 2022 half year results conference call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would like to turn the conference over to your host, Mr. Kevin Chin. Please go ahead. Thank you, and welcome everyone to the half-year results presentation for VivoPower. Let's jump straight to page four, the executive summary. Headline is we've made good strategic progress over the last six months, but our results have been affected by extended COVID lockdowns in our key markets, particularly Australia. The six-month revenue decreased 11% year-on-year to $18.9 million, reflecting the lockdown regime that we had to contend with, principally in Australia, which extended from July 2021 and really just has finished now, in February 2022. That's caused delays to scheduled works for the business units as well as significantly curtailing kit deliveries, as well. Our gross profit and GP margin both declined as a result of the revenue drop and additionally incurred a $1.1 million one-off COVID-driven loss on the Bluegrass Solar Project in Australia. That was principally due to the Queensland border closure, which prevented us from sending staff up to Queensland. Additionally, we had a COVID outbreak on site unfortunately in January as well. EBITDA-wise, our adjusted EBITDA declined to -$4.9 million versus $1.2 million from previous corresponding period. Operating loss increased to $7.3 million versus $0.4 million for the prior year. This reflects the drivers I mentioned before and in addition we've also increased corporate costs and invested in growth OpEx to support the scaling up in particular the Tembo business. In terms of balance sheet cash, that's declined from $8.6 million to $3.3 million, reflecting the investment, the Bluegrass loss, as well as the increase in OpEx costs. That has increased post balance date as we've started to see debt collections come in, as well as some strategic funding that we've received from the major shareholder. As mentioned, you know, key strategic initiatives we have executed upon a number of those over the last six months despite the disruptions that we've had to deal with. We've expanded our distribution partner network to six continents, as I recently established a subsidiary in the UAE, which is the largest off-road market in the world. We've also prioritized the developments of the 72 kWh battery kits, which is a significant upgrade on the previous 28 kWh. We've achieved full control of our U.S. solar joint venture and as foreshadowed at the full-year results presentation in August last year, we have now entered an LOI to launch a renewable-powered digital asset mining business at Caret Decimal, and we've contributed an initial 206.5 MW DC from our solar portfolio at a valuation of $20 million, which is materially above the book value of $12.1 million for the entire portfolio. Last but not least, and importantly, we have been recertified as a B Corp. That's a difficult process. Following the mandatory reassessment review, we're pleased to have been recertified and happy also to have been recognized again as a top global impact company for the second year in a row. Moving on to page five. Wanted to also go through some updates from post first January. Firstly, on the front, as mentioned, very difficult last six months. Pleasing news is that our head of work is actually up 72% year-on-year versus this time last year, reflecting pent-up work and additional projects in the solar data center and infrastructure sectors. Cash flow is also improving with material cash inflows since mid-January, as mentioned. On the Tembo front, we've secured a new facility, so we'll be moving to an expanded facility next to Eindhoven Airport on the first of May. The new facility comprises just under 30,000 sq ft of space, which is more than double the current facility and can potentially accommodate assembly of up to 5,000 e-LV kits per annum. That is, however, subject to the micro factory strategy that we're working on at the moment in relation to how best to scale up assembly on a global basis going forward. On a couple of the collaborations that have been outstanding, TMCA and Arctic Trucks. First on TMCA, that collaboration has experienced delays. Negotiations and agreement with TMCA for the exclusive supply of e-LV kits focused on the mining sector in Australia remain ongoing. The Arctic Trucks LOI has been extended to the end of June to allow time for further assessment of the next generation batteries. We continue to work on non-dilutive funding work streams and have made good progress in that regard. The key ones there, firstly in the U.K., R&D tax offsets worth up to 33% of R&D spend. There are other U.K. government mobility, automotive innovation, and green grants that we qualify for. We are going through a process there in terms of getting access to those funds. In the EU, we have access to the European Innovation Council grants of up to $2.8 million, and there's also potential equity investments to fund scale-up costs of up to $17 million. Last but not least, on a global scale, this is the most important aspect of funding, which is working capital. There are numerous facilities, debt finance, supply chain, trade finance, some of which we've already secured, but we continue to work to build that up. As I mentioned last year, funding through the equity markets is not something we will look to do, especially given where current share price levels are at and market sentiment is at. There are other levers being these ones I've talked about that we're primarily focused on. Next item, the GB Auto LOI is being extended for now. There's been disruption on our end since December that's caused delays to the due diligence program, that extension is expected to provide a buffer for any further disruption. Last but not least, Caret Decimal has also executed an LOI to acquire Decimal Digital, which is our partner on the digital asset mining side, and that will deliver over 1,000 latest generation mining rigs. That will be for initial consideration of $14 million and will accelerate the path to revenue generation for Caret Decimal. Fundraising has already commenced at the Caret Decimal level. Again, this is not at VivoPower level with capital raising advisors engaged to raise $50 million for us on that front. As mentioned last year, you know, ultimately we see this business potentially spinning off and out of VivoPower. Going on to the next slide. These were the objectives we set out back in August last year when we announced our full year. The green items are what we've completed. The orange are still in progress. We remain on track despite disruptions to date and to get as many of these objectives done before the end of our fiscal year in June. Now moving on to the specific business units, and I'll take you to page eight, which is Tembo electric vehicles. Tembo revenues were up versus last year $0.9 million. However, you know, impacted and lower than budget due to operational disruption and delays in assembly and delivery of kits. Underlying EBITDA loss of $2.3 million, as mentioned, reflects primarily growth in OpEx investments. Work is progressing on the next generation semi-secure one hour battery platform. Moving on to Critical Power on page nine and unpacking the numbers a bit more. The VivoPower business itself recorded $18 million in revenue, which is down 14% year-on-year, really due to sort of the effects of, you know, very long and sort of hard lockdown in Australia. Gross profit was down to $0.8 million versus $3.3 million in the prior year. That does, however, include a one-off of $1.1 million for the Bluegrass solar project. Excluding that, it would have been $1.9 million. Underlying EBITDA excluding Bluegrass is $1.3 million. We remain, you know, very positive on this business going forward, given the head of works that I mentioned and given that Australia for all intents and purposes is now open. There are no more inter-country and interstate lockdowns of note, except for Western Australia, which has announced that it is finally reopening in early March. Also international borders are now reopened. That took effect from Monday, the twenty-first, so three days ago. We've been awarded electrical works for the 119 MW Hillstone Solar Farm, so that's been, you know, a very positive development in the last few weeks as well. Moving on to page 10. With respect to SES, this is obviously a newly established segment. Revenues are immaterial at this point, and we've not incurred any significant cost to date. We are on track with Tottenham with respect to what they wanna do at their training ground and adjacent to the stadium. In addition to that, we've commenced dialogue with major mining and port infrastructure companies to commence feasibility studies for whole of facility electrification projects that could lead to not just vehicle kits being ordered, but also microgrids, charge stations, et cetera. We also signed a MOU with Re-Electrify, a leading supplier of battery energy storage systems utilizing second life EV batteries. We are collaborating further to explore redeployments of Tembo batteries with Re-Electrify. Last but not least, we've now developed tools to allow total cost of ownership and ROI to be assessed in at a more sophisticated level, you know, for our customers. Going on to page 11, this is Caret Solar, which has been renamed for our solar business in the U.S. and that's the rebrand and a power-to-edge strategy which was foreshadowed last year is being progressed. We've as mentioned, contributed 206.5 MW of more advanced projects out of the 682 that we have to Caret Decimal at a valuation of $20 million. We've also commenced reassessment of previously mothballed projects that total about 1.1 GW, and so we're reevaluating them for development. What we're seeing, you know, across the U.S. is very strong interest in renewable power sites, including from crypto hosting companies who at the moment are facing lead times of 12 months plus to accommodate future customers, you know, wanting to mine crypto on their platforms. They're looking for more sites. We've had a number of parties approach us, but we're very much focused on the Caret Decimal opportunity and fundraising at that level at the moment. The next few slides 12, 13, 14, 15 show you some schematics of the three initial sites that we are looking to develop. They're all in Texas. There's TX-145, TX-144, and TX-165 all relatively close to each other. One of those sites also has the opportunity to significantly upsize the load, which will create incremental value. On page 13, 14, and 15, you can see, you know, the design schematics of these sites. They're practically, you know, ready to build subject to financing being completed, and we would look to commence construction later this year. These sites, you know, primarily comprise the solar array that you can see, as well as data centers to house rigs and all very strategically located. Now moving on to the financial review. I'll take care of that as well. Going on to page 17, this unpacks the P&L further. You can see there the numbers that I've sort of showed before in terms of both Critical Power and electric vehicles, and all sort of cascading down into the group gross profit level of $0.5 million. But that is after the $1.1 million one-off loss attributable to Bluegrass, and compares to $3.3 million in the prior year. And that in turn cascades down into the underlying EBITDA of -$4.9 million versus $1.2 million for the previous corresponding period. Again, as mentioned, looking for a rebound now in terms of particularly the Aevitas business and then being, you know, unshackled on the EV side as well. What we will have to, however, navigate is supply chain issues. Just like everyone else, we're starting to see that really come to the fore. That is something we'll need to navigate. Next two slides are really just a reconciliation of adjusted EBITDA and adjusted EPS to IFRS financial measures. Then on page 20, the last slide has set out the balance sheet. As mentioned, the first line item there, project investments, that represents principally Caret, for which there's $13 million of carrying value. Unrestricted cash, you know, $3.3 million as of the balance date. As mentioned, that's now increased, and with respect to borrowings, that's increased slightly as at the balance date. Translating into a net debt figure that's now $21.9 versus $14.5. Important to note that there's practically no external debt per se. This is all shareholder loans from the largest shareholder who's been, you know, very supportive of VivoPower for a number of years. On that note, I think key takeaway, it's been tough six months. We've you know, we really felt like we've been running against the headwinds. Very pleased now to have, you know, border restrictions and lockdowns removed in our key markets. Some positive, you know, developments in the post-balance date period in terms of pipeline, in terms of cash, in terms of funding, and in terms of strategic developments. I'll end on that note, so I'm happy to open it up to Q&A. Thank you all for tuning in. Thank you, Mr. Chin. Ladies and gentlemen, if you have a question at this time, please press star then the number one key on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. The first question comes from the line of Jeffrey Campbell from Alliance Global Partners. Your line is open. Hi, Kevin. Hi, Jeff. I noted the Tembo new line expansion in the Netherlands of interest. I wondered if there's still interest in creating Tembo facilities closer to Southeast Asia or Australia. Definitely. I think I've mentioned that Thailand was one market that we had looked at in the past. We're very close to and have good relationships with some of the, you know, leading families in Thailand, as well as various, you know, government officials. Thailand's got a very good automotive ecosystem. But Thailand has also been closed, and they are just starting to reopen again. Definitely we'll look at a microfactory strategy close to our key markets. We see the United Arab Emirates as, you know, another, you know, potential location. Netherlands is not the only site that we'll be looking at. Great. Thanks for that color. I'd like to ask a couple of Caret questions and then I'll be done. Sure. Caret Digital press release indicated that the primary endpoints for developing the 206 MW of solar power was cryptocurrency mining and other power-intensive blockchain computing applications. Could you add some color on these other blockchain applications that that's referring to? Yes, no problem. We actually see Caret Decimal as principally an infrastructure business, you know, underpinned by the renewable sites that we have and the data centers that will be built on them. In future, this will accommodate not just crypto mining. If you look at blockchain, it's really the blockchain and the process of cryptography that is very energy intensive. The way I look at it, there are basically three Cs in terms of segments of blockchain. One is crypto, as in crypto mining. Two is content, and you can include, you know, NFTs in that. You can include VR, AR, you know, the Metaverse and all the sort of products that are being developed. They're all very energy intensive. Then last but not least, contracts. Three Cs, crypto, content, contracts. Contracts being smart contracts. You know, numerous Fortune 500 companies and leading corporates globally are now getting into smart contracts in a big way. That is also very energy intensive. What we're looking to do is create an infrastructure that goes beyond just crypto mining, but is able to effectively be a HPC facility that accommodates other applications such as what I've just mentioned. Okay, great. Finally, you know, bearing in mind that crypto's undergone increasing U.S. regulatory scrutiny lately, and I refer to Meta's recent failed effort as an example. How does your strategy, your current strategy, take this into account? Should something untoward change, what do you think of as the best backup uses for the infrastructure that you're developing should crypto somehow become uneconomical or regulated in some way that makes it less attractive than it is now? Yeah, good question, Jeff. You know, our own view is that crypto will be regulated, and that's not necessarily a bad thing. However, you know, to your point, there is a risk that renders it uneconomic, you know, for mining. That sort of goes back to our strategy, which is really this is infrastructure that's designed ultimately for blockchain applications and, you know, related, you know, high energy intensive computing applications as well. You can see from the designs there that there are data centers in place, you know, adjacent to the solar arrays, and these sites are very strategic. We can see, you know, one of them is very close to a ERCOT substation, and ultimately our view is. You know, our strategy is to build these things so that they're not dependent on crypto mining. It just so happens that crypto mining is the highest and best use for now. But there are multiple use cases for these sites even without crypto. You know, the trend here is the mega trend is not just crypto mining, but blockchain and other high energy-intensive computing applications. No, I appreciate that color. I'm not sure that a lot of investors really appreciate that blockchain's actually quite mature. I mean, offshore drillers were using a blockchain to pull together all the disparate parts that go onto a drill ship or onto a production platform 4-5 years ago. Yeah, I appreciate that answer very much. Thank you. Yeah. I mean, you're spot on, Jeff. Today the computing or high performance computing industry contributes to 3.7% of global emissions, as compared to say the mobility, including the auto industry, which is north of 11%. That's the highest. Production of steel and iron ore is number two. I think HPC computing is gonna be the fastest growing in terms of emissions. With the amount of content that's being generated for online consumption, whether it's the Metaverse or even if you know with Netflix and the sort of computing power associated with that and the energy intensity of that's not sort of widely understood. Yeah. That, that's a great point. I mean, we didn't really hit our question that way, but, I'm certainly seeing increasing ESG scrutiny of computing in general, data centers in general and crypto and the rest. So, what you just said makes perfect sense. Thank you for the color. No worries. Thanks, Jeff. Happy to take other questions as well. Thank you. Once again, in order to ask a question, please press star then the number one on your telephone keypad. Once again, that will be star then the number one on your telephone. I am not seeing any further question at this time. You may continue, Mr. Chin. Thank you. Well, again, thank you everyone for joining. I know there's a lot going on in the world at the moment. I appreciate the time and wish you all well. We'll close this meeting now. Thank you. Thank you, everyone. This concludes today's conference call. You may now disconnect.