the NASDAQ listed B Corp, VivoPower International PLC (“VivoPower”)
has announced a major transformational strategic update today with
regards to its electric vehicle subsidiary, Tembo e-LV B.V.
(“Tembo”).
Over the past 18 months, Tembo has diligently worked towards
establishing a robust supply chain across Asia, including securing
best in class partners in the Philippines, Thailand, China and
India, accelerating the ability to serve diverse markets
globally.
The establishment of this supply chain has enabled Tembo to
procure, evaluate, and now introduce a fully electric OEM pickup
utility vehicle. The base model has a range of 330 kilometres, as
well as a payload capacity of 1 tonne, and an unbraked towing
capacity of 750 kilograms. The inaugural shipment of EU-certified
and rigorously tested vehicles have already arrived in Australia.
This initial order is being prepared for delivery to partners and
customers, with full on-road homologation expected to be granted by
July 2024.
The Tembo OEM program will augment the Tembo EUV conversion
program, increasing choices for Tembo’s B2B customer base and
target market. Depending on where a fleet customer is in their
fleet replacement cycle and/or depending on their strategic
requirements and total cost of ownership considerations, Tembo will
now be able to offer a choice of a full electric utility vehicle or
a conversion of an existing utility vehicle. This expanded offering
underscores Tembo's commitment to providing tailored solutions to
meet the diverse requirements of its global customer base.
The establishment of our strategic supply chain in Asia also has
profound financial implications for both VivoPower and Tembo,
alleviating the necessity to procure substantial funds for capital
expenditure towards assembly and production facilities. This
transformation of Tembo's business model towards a more
capital-light approach not only accelerates delivery schedules and
revenue streams but also fortifies the foundation for sustainable
growth. Moreover, this development also delivers a positive effect
on our EUV conversion and Jeepney PUV businesses, enabling
significant reductions in direct costs for both programs.
More broadly, our strategic focus remains on delivering
purpose-driven sustainable energy solutions to electrify B2B
fleets, encompassing aftermarket solutions, charging, digital
twins, software and data analytics, aligning with evolving market
dynamics and regulatory frameworks.
VivoPower’s Executive Chairman and CEO, Kevin Chin said “The
establishment of our strategic supply chain is the culmination of
18 months of extensive engagement to build and fortify
relationships with best in class partners across Asia. We have
executed upon a ‘Pilot – Partner – Procure” strategy which
materially improves our competitive pricing, significantly reduces
capex requirements, and accelerates speed to market. The outcome
has surpassed our expectations, so much so, that we are now in a
position to bypass the traditionally most risky and capital
intensive scale up assembly and production phase with the
introduction of the Tembo OEM range. Our pre-marketing engagement
with our partners and potential customers have provided us with
very positive feedback and given us the confidence to accelerate
the launch of the range globally. The Tembo OEM program is also B2B
focussed and augment our EUV conversion business, including the
Jeepney program. Both the EUV and Jeepney PUV business units will
benefit from the strategic supply chain that is now in place, with
a material reduction in direct costs for both. Importantly, with
the European heritage of Tembo, as well as our first class team of
experienced EV engineers and executives, there is no compromise on
safety, quality and reliability. We are also cognizant that in
order to be truly sustainable, our solutions need to be
economically viable for our customers as well as environmentally
beneficial. These transformational strategic initiatives we have
executed upon will deliver on both fronts for our partners and
customers alike. Furthermore, the transition to a capital light
business model that accelerates our path to profitable revenues is
a benefit for our shareholders.”
About VivoPower
VivoPower is an award-winning global sustainable energy
solutions B Corporation company focused on electric solutions for
off-road and on-road customised and ruggedised fleet applications
as well as ancillary financing, charging, battery and microgrids
solutions. The Company’s core purpose is to provide its customers
with turnkey decarbonisation solutions that enable them to move
toward net-zero carbon status. VivoPower has operations and
personnel covering Australia, Canada, the Netherlands, the United
Kingdom, the United States, the Philippines, and the United Arab
Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are the premier 100%
electric solution for ruggedised and/or customised applications for
fleet owners in the mining, agriculture, energy utilities, defence,
police, construction, infrastructure, government, humanitarian, and
game safari industries. Tembo provides safe, high-performance
off-road and on-road electric utility vehicles that meet exacting
standards of safety, reliability, and quality. Its core purpose is
to provide safe and reliable electrification solutions for utility
vehicle fleet owners globally, helping perpetuate useful life,
reduce costs, maximise return on assets, meet ESG goals and
activate the circular economy. Tembo is a subsidiary of the Nasdaq
listed B Corporation, VivoPower International PLC
Forward-Looking Statements
This communication includes certain statements that may
constitute “forward-looking statements” for purposes of the U.S.
federal securities laws. Forward-looking statements include, but
are not limited to, statements that refer to projections, forecasts
or other characterisations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements may include, for example, statements about the
achievement of performance hurdles, or the benefits of the events
or transactions described in this communication and the expected
returns therefrom. These statements are based on VivoPower’s
management’s current expectations or beliefs and are subject to
risk, uncertainty, and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements
herein due to changes in economic, business, competitive and/or
regulatory factors, and other risks and uncertainties affecting the
operation of VivoPower’s business. These risks, uncertainties and
contingencies include changes in business conditions, fluctuations
in customer demand, changes in accounting interpretations,
management of rapid growth, intensity of competition from other
providers of products and services, changes in general economic
conditions, geopolitical events and regulatory changes, and other
factors set forth in VivoPower’s filings with the United States
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. VivoPower is under no
obligation to, and expressly disclaims any obligation to, update or
alter its forward-looking statements whether as a result of new
information, future events, changes in assumptions or
otherwise.
Contact
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shareholders@vivopower.com
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