ASX ANNOUNCEMENT, 23 rd November 2017 2017 ANNUAL GENERAL MEETING - CHAIRMAN’S ADDRESS Mr Charles Macek (Chairman, Vivid Technology Ltd): I would like to take this opportunity to thank you for the support over the past years. Financially, 2017 was a disappointing year. However, operationally, the company and its technologies move from strength to strength. In its maturity as a business Vivid Technology is an early stage company at its Scale Up to Growth phase. With the core focus on the Energy Efficiency business and the passive investment in NewCO2Fuels, 2017 saw the team establishing a platform for growth in 2018 and beyond as Sam will discuss in his Managing Director’s presentation. As our shareholders are aware, Vivid Technology has focused on developing long and deep relationships with large Australian and international corporations. Unfortunately, like many start-ups, this takes longer than one would like due to the size and scale of these organisations, however once proven and selected, the opportunities are large. We felt these effects during FY17 as the company moved from “Proof-of-concept” to solidifying formal relationships with groups including Coca-Cola Amatil and Honeywell, as announced in April & May of this year. We also established world-leading savings and assisted in developing Australia’s first ever off-grid enabled warehouse in the Northern Territory for the Linfox group. On our investment in NewCO2Fuels, the technology continues to be tested and going through due-diligence by some of the world’s largest power / energy technology manufacturers. The results are promising, and the feedback is positive. The opportunity with Sinopec Engineering would be a major step forward. Technical due diligence has been completed and negotiations for the formalisation of a commercialisation agreement are proceeding. We have identified a global CEO and in due course, will provide more insight into how this strategy may play out. Once again, thank you for your support. We are at an exciting stage of the evolution of Vivid Technology, with world leading and awarded technologies, blue chip customers and we are proud that we are achieving this with Australian owned, designed and manufactured products. For personal use only
Transcript
ASX ANNOUNCEMENT, 23rd November 2017
2017 ANNUAL GENERAL MEETING - CHAIRMAN’S ADDRESS
Mr Charles Macek (Chairman, Vivid Technology Ltd):
I would like to take this opportunity to thank you for the support over the past years. Financially, 2017 was a disappointing year. However, operationally, the company and its technologies move from strength to strength. In its maturity as a business Vivid Technology is an early stage company at its Scale Up to Growth phase. With the core focus on the Energy Efficiency business and the passive investment in NewCO2Fuels, 2017 saw the team establishing a platform for growth in 2018 and beyond as Sam will discuss in his Managing Director’s presentation.
As our shareholders are aware, Vivid Technology has focused on developing long and deep relationships with large Australian and international corporations. Unfortunately, like many start-ups, this takes longer than one would like due to the size and scale of these organisations, however once proven and selected, the opportunities are large. We felt these effects during FY17 as the company moved from “Proof-of-concept” to solidifying formal relationships with groups including Coca-Cola Amatil and Honeywell, as announced in April & May of this year. We also established world-leading savings and assisted in developing Australia’s first ever off-grid enabled warehouse in the Northern Territory for the Linfox group.
On our investment in NewCO2Fuels, the technology continues to be tested and going through due-diligence by some of the world’s largest power / energy technology manufacturers. The results are promising, and the feedback is positive. The opportunity with Sinopec Engineering would be a major step forward. Technical due diligence has been completed and negotiations for the formalisation of a commercialisation agreement are proceeding. We have identified a global CEO and in due course, will provide more insight into how this strategy may play out.
Once again, thank you for your support. We are at an exciting stage of the evolution of Vivid Technology, with world leading and awarded technologies, blue chip customers and we are proud that we are achieving this with Australian owned, designed and manufactured products.
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Annual General MeetingNovember 23rd 2017F
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Disclaimer
Summary information - This presentation has been prepared by Vivid Technology Limited (ACN 120 710 625) (“Vivid Technology or “Company”). This presentation contains summary
information about Vivid Technology and its subsidiaries and their activities current as at the date of this presentation. The information in this presentation is a general background and does
not purport to be complete. It should be read in conjunction with Vivid Technology’s other periodic and continuous disclosure announcements lodged with ASX, which are available at
www.asx.com.au.
Past performance - Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of Vivid
Technology's views on its future financial performance or condition. Investors should note that past performance, including past share price performance, of Vivid Technology cannot be
relied upon as an indicator of (and provides no guidance as to) future Vivid Technology performance including future share price performance.
Future performance - This presentation contains certain "forward-looking statements". The words "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may",
"will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and
performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are
subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including
projections, guidance on future earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. The forward-
looking statements in this presentation speak only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant ASX listing rules, Vivid
Technology disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this presentation to reflect any change therein. This presentation
contains such statements that are subject to various risk factors. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of
variables which could cause actual results or trends to differ materially. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking
statement by any person including Vivid Technology. In particular, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or
implied in any forward-looking statements in this presentation will actually occur.
Investment risk - An investment in Vivid Technology securities is subject to investment and other known and unknown risks, some of which are beyond the control of Vivid Technology,
including possible delays in repayment and loss of income and principal invested. Vivid Technology does not guarantee any particular rate of return or the performance of Vivid Technology,
nor does it guarantee the repayment of capital from Vivid Technology or any particular tax treatment. Persons should have regard to the risks outlined in this presentation.
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“To Be Leaders In Technology Driven Intelligent Energy Efficient
Solutions”
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Proven technology with over 85% CO2 & energy savings
Award winning Commercialisation models
International success with global reach
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100%NCF Global
100% 66%
50%
Energy Efficiency Technology Investment
.
.
.
.
Proven technology
In the global commercialisation phase
In negotiation with Sinopec to commercialise
Corporate SnapshotF
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2017 Key Achievements in a scale-up year
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Successfully changed company name and ASX code to VIV while
updating corporate web sites to leverage name change in market as
part of overall corporate digital transformation
✓ New Company
branding and
ASX code (VIV)
Yielding repeat and new business from established customers of turnkey
lighting upgrades across multiple sites in Australian and Overseas
Including Coca-Cola Amatil & Honeywell Building Solutions (MOU)
✓ Executed on Multi-Site Cross
Sell Strategy & established
preferred suppliers
New capital strategy to support scale-up, combining equity and
working capital facilities✓ Established Capital
strategy
Awarded Frost & Sullivan’s Australia 2016 Growth Excellence in
Smart Lighting Solutions award and Westpac’s inaugural 200
Businesses of Tomorrow for businesses to shape Australia’s future ✓ Industry Accolades
Enhanced data connectivity and analytics allow high energy efficiency
and detailed operational insight via an enhanced IoT platform. CSIRO
partnership resulting in improved competitiveness, manufacturing lead
times and enhanced product outcomes for customers
✓ Expanded technology
across hardware &
software platforms
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Initial Capital Deployment
“WHY ME” “ME TOO”
Secondary Capital Deployment
Future Capital Deployment
2013 2015 2017 2019
Validation “Start-Up” “Scale-Up” Expansion
Investment Deployment Growth
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Evolution Start-Up to Scale-Up
2yrs 2yrs 2yrs
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$0.6m
$2.2m $2.3m
$4.3m
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Total Reported Revenue and Other Income for FY17 $3.6m
Sales Revenue of $2.3m in FY17
Sales reflected repeat business from existing customers
driven by proven capability in energy efficient lighting
upgrades for the logistics, retail property, food and
beverage, facilities management, health, and education
sectors.
Integration, product validation and high customer
engagement focus across FY17 has set solid foundation for
growth in FY18
To date, over $4.3m in orders have been confirmed, and
represent 188% of total FY17 sales revenue.
Targeting continued revenue growth for 2018 across
Australian and International customer base is expected.
Reported Full Year Sales RevenueYTD FY18
Order Book Growth
Group Sales PerformanceF
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Energy PricesIncreasing
ProfitabilityPressures
Lack of Data Insight….
(Industry 4.0)
Renewables Focus
but Base Load First
Market Dynamics
Source: Freedonia Research
GLOBALLighting Market
Addressable
US$110bp/a
Source: Source McKinsey, IBIS and Comp Estimates
AUSTRALIAN Lighting Market
Addressable
US$2.6bp/a
Industry Under Pressure To Do More with Less
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ACHIEVEMENTS
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Validated Success
Best Innovation in Energy Efficiency 2017
Best Innovation in Energy Efficiency 2017
Winner: MATRIXX® - an intelligent LED lighting platform
Vivid Industrial has developed an intelligent, energy efficient,
lighting and service solution for the industrial and commercial
markets. The unique Australian designed and manufactured,
MATRIXX® technology has demonstrated its capability as a
highly effective "industrial internet of things" lighting platform,
consistently generating benchmarked energy savings in excess
of 80%, significantly reducing energy cost and life-cycle
environmental impact.
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Validated Success
External Customer Validation – Coca-Cola Amatil Example
▪ Preferred Supplier Agreement signed with CCA
▪ Initial site installations completed in FY’17
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Industrial IoT Enabled Lighting Metrics
* Infographic data calculated from internally generated data and reference to EPA and Carbon Neutral sites
7,000,000 KWh saved equates to > $1menergy
costs saved
>3.3mdata points monitored
per light per year
562,533m2
area under light
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CONTINUEDEVOLUTION
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A Full Service Intelligent Lighting Solution
Intelligent
Energy Efficient
“Lighting
As-A-Service”
Model
IoT Platform
“Subscription”
Model
Ubiquitous
Networked
Powered
Insight Algorithms
Data Analytics
“Subscription”
Model
We MANAGE We MEASURE We MONITOR
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Need to monitor, respond and adjust
in real time to a range of internal and
external variables to maximise the
amount of energy saved.
Interrogating and understanding
interdependencies and impact of
differing data is critical to identify
correct activity to action
Allows for multi decade maintainable
assets
You cannot MANAGE what you don’t MEASURE and MONITOR
>3.3m*
data points monitored
per light per year
Electricity
Supply Data
Communications
Lighting
Control
OperationalEnvironmental
Cultural
Intelligent Monitoring & Control
* For a typical industrial site using Matrixx(R)
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Analytics Monetisation
Facilitates an:
“Outcome Based Service Model” where
customers are able to validate and verify
efficiency gains on a monthly basis
Provides deep insight into organisational
operational activity, allowing changes to be
undertaken based on fact and insight not
“gut-feel”. eg (Heat-Mapping)
Provides verifiable data to help customers
identify areas of adjacent efficiencies. eg
(Storm Damage)
You cannot MANAGE what you don’t MEASURE and MONITOR
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Adaptive Lighting Supply Market Models
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Traditional
lighting
sales
model
Equipment
lease or
vendor
finance
Lighting
as-a-
Service
(LaaS)
▪ Once-Off Project $
▪ “Current” global
lighting model
▪ Bank Finance based $
▪ Low Repeat Business
▪ Limited ongoing contact
▪ Annuity based $
▪ Long term contracts
▪ Low customer attrition
Capex Finance
Traditional Ownership ModelAsset Management Model
Outcome Based Service Model
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Focus
▪ Advanced
Manufacturing &
Material reduces
manufacturing cost
ensuring market
competitiveness &
increased product
design flexibility
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COST OUT DEVELOPMENT
Continued Research & Development
RESEARCH EXPERTISE
Growth
▪ IoT Platforms
▪ Integrated Controlled
Environment
Horticulture systems
Integrated
Emergency Lighting
systems
▪ Cross platform
environmental sensor
systems
Evolution
▪ Porting intelligence
to commercial
lighting
▪ More efficient
MATRIXX capability
▪ Deeper analytical
insights
Leverage
▪ R&D Capability
▪ Product evaluations
and assessments
▪ System & Data
Integration specialists
▪ Thought Leadership
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Technology Investment
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2017: Developing Commercialisation relationships
✓ Initiated discussions with further local & global partners, including furthering Sinopec and Blooming relationships, to commercialise the NCF technology with key partners across the globe;
✓ Entered into two key term-sheets and commercialisation negotiations with:
✓ Sinopec Engineering (Group) Co Ltd (SEG) to commercialise NCF’s award winning CO2 to fuel technology for the Chinese market.
✓ Blooming (Beijing) Technology CO Ltd (BBT) to lead sales and marketing of NCF’s award winning CO2 to fuel technology in China
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2018 & Beyond
Finalise commercialisation relationships for technology development & funding with key partners
Review structure across NCF & its investors, optimising for growth & pilot / demonstration plants:
Global Management appointed
Structured for international growth
Focus on external funding for scale up and roll-out
► Multiple Reaction Towers
► Each tower contains multiple reaction units and
associated utilities (gas, electricity and control system)
