EBITDA Growth achieved in challenging environment

VivoPower executed strategic pivot to enter commercial Electric Vehicle market

EdventureCo delivered strong results on the back of successful digital transformation

Arowana Funds Management progressed realisation of investments

Highlights of AWN's FY2021 Annual Results and subsequent events:

• Statutory operating revenue down 5% on previous corresponding period (PcP) to $110.5m, due to impact of COVID-19
• Statutory group EBITDA up to $75.7m ($4.6m loss in PcP); underlying group EBITDA increased to $6.2m versus $4.8m in PcP
• Results primarily reflect an $86.8m non-recurring gain on deconsolidation of VivoPower and digital transformation across the Group
• VivoPower entered the EV market through Tembo e-LV B.V. (“Tembo”) acquisition and secured global distribution partner commitments for 4,475 EV conversion kits
• VivoPower issued new equity during FY2021, raising net proceeds of US$32m, diluting AWN’s shareholding to 44.2% (from 60.3%) as at 30 June 2021
• Statutory NTA increased to $3.15 per share ($0.13 per share in PcP) following deconsolidation of VivoPower
• EdventureCo’s statutory revenue of $51.2m was 23% ahead of PcP due to strong revenue growth within both DDLS and Everthought
• Statutory EBITDA (excluding impairment write down) of $5.6m against PcP of $2.4m; underlying EBITDA increased to $10.4m ($4.2m in PcP) reflecting revenue growth and significant margin expansion as a result of successful digital transformation initiatives
• Impairment write-down on Everthought goodwill of $3.3m due to ongoing impact of COVID-19 on international student enrolments
• AFM’s statutory revenues increased to $2.1m ($1.0m in PcP) due to non-recurring $1.1m Arowana Contrarian Value Fund (ACVF) termination fee
• AFM statutory EBITDA decreased to a loss of $6.3m ($42k profit in PcP) due to unrealised fair value adjustment incurred by Arowana Australasian Special Situations Fund (AASSF) following exchange of investment in VivoPower Aevitas Exchangeable Securities; AFM’s underlying EBITDA loss of $0.7m (an improvement on $2.1m loss in PcP) following reduction of Australian Special Income Opportunities Fund (ASIOF) cost base
• Aggregate Funds Under Management decreased to $53m as at 30 June 2021 (30 June 2020: $130m) as a result of the exit from the ACVF business

Subsequent Events:

• EdventureCo has reached agreement to acquire 100% of Auldhouse (www.auldhouse.co.nz), which is NZ’s largest IT and Digital Skills private fee for service training company, with the transaction expected to close on 1 September 2021
• Enterprise value at completion of circa NZ$17.3m (A$16.6m) representing an LTM EBITDA multiple of 5.1x (excluding synergies)
• EdventureCo is in discussions to invest in other education companies globally (including edtech)

AWN's Annual Results Presentation can be viewed here.