VivoPower PLC (VIVO) Emerging Growth Conference 92 summary

Strategy and business model

• Focuses on acquiring, developing, and owning AI-ready data center infrastructure, leasing powered shells to hyperscalers, sovereigns, and enterprises under long-term agreements.

• Operates in select sovereign markets with deep local connectivity, prioritizing powered land with sub £0.05/kWh input costs.

• Generates value by permitting and energizing brownfield land, earning development profits, and securing long-term rental income.

• Avoids technology risk by not engaging in GPU operations, focusing instead on bricks-and-mortar assets.

• Employs a capital recycling model, refinancing stabilized assets to fund future developments and minimize dilution.

Financial performance and targets

• Pro forma annual revenues post-Norway acquisition are approximately £31 million, with over £10 million EBITDA.

• Fully diluted market cap is about £120 million, with an enterprise value of £140 million.

• Typical land basis ranges from £50,000–£500,000 per MW, with build costs under £10 million per MW and 12-month lead times.

• Achieves unlevered yields of 12–16% on developments, with lease terms of 15–25 years and significant free cash flow.

• For every £1 of development equity, generates £2–£5 of book value equity gain over 18–24 months.

Market positioning and growth plan

• Targets the Nordics (Norway, Finland), GCC (UAE, Saudi Arabia), and select Asian markets for strategic expansion.

• Prioritizes regions with low power costs and rapid grid connectivity, leveraging sovereign relationships.

• Plans to secure 2 GW of power by 2026–2029, aiming for over £1 billion in revenues and £200 million in annual free cash flow.

• Long-term vision includes building a 20 GW autonomous global infrastructure network by 2033, targeting £5 billion+ in revenues.

• Benefits from strong government support in the GCC and attractive conditions in the Nordics for data center development.