VEEM LTD — Capital/Financing Update 2020

Mar 17, 2020

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ASX ANNOUNCEMENT

18 March 2020

VEEM AWARDED $9 MILLION SUBMARINE COMPONENT ORDER

Highlights:

• VEEM has secured a $9 million order from the Australian Submarine Corporation (ASC) for certain specialised components of the Collins Class maintenance program

• The award of the contract demonstrates the recurring nature of the demand for VEEM’s traditional, highly specialised defence engineering capability

• Work will commence immediately with deliveries commencing July 2020

VEEM Limited (ASX: VEE) (‘VEEM’ or ‘the Company’), is pleased to announce that it has received orders for approximately $9 million from the Australian Submarine Corporation (ASC) for certain specialised parts as part of the maintenance program for the Collins class submarines.

Work will commence immediately at VEEM’s specialised engineering facility in Canning Vale, Western Australia, with deliveries expected to occur over 15 months from July 2020.

This order follows a long history of work successfully completed by VEEM for the ASC and highlights the Company’s ability to consistently deliver highly-specialised engineering that meets the stringent standards required for defence contracts.

VEEM Managing Director, Mr Mark Miocevich, commented: “The new contract with ASC is further demonstration of our reputation for precision engineering to the exacting defence standards. This work will positively impact our profitability in the current and next financial years.

“While marine gyrostabilization is VEEM’s disruptive product range with huge growth potential, this $9 million contract demonstrates again the capacity of our traditional business to contribute growing recurring profits and will underpin our business during these uncertain times.”

ENDS

Further information:

Mark Miocevich, Managing Director on +61 8 9455 9355 David Rich, CFO & Company Secretary on +61 8 9455 9324 Simon Hinsley, Investor & Media Relations on +61 401 809 653 or simon@nwrcommunications.com.au

This ASX announcement was authorised for release by the Managing Director, Mark Miocevich.

VEEM Ltd ABN 51 008 944 009

22 Baile Road, Canning Vale, Western Australia 6155, P.O.Box 1542, Canning Vale, Western Australia 6970

About VEEM

VEEM Ltd is a designer and manufacturer of disruptive, high-technology marine propulsion and stabilization systems for the global luxury motor yacht, fast ferry, commercial workboat and defence industries. VEEM’s market leading Gyrostabilizers significantly reduce the rolling motion of vessels in waves, increasing on-sea time and improving personnel safety and efficiency in a wide range of ocean conditions.

VEEM is also a successful producer of high-performance propellers, fin systems and specialised components delivering consistent profits, cash flow and dividends while also reinvesting in research and development for new products and processes.

Proudly headquartered in Perth, Western Australia, VEEM operates from a 14,700sqm purposebuilt fabrication and manufacturing facility, including Australia’s largest non-ferrous foundry. We employ approximately 180 staff in Australia, including graduates and apprentices, and maintain a highly skilled research and development team in-house. Celebrating our 50th anniversary in business in 2018, VEEM listed on the Australian Securities Exchange in 2016. www.veem.com.au

VEEM Ltd ABN 51 008 944 009 22 Baile Road, Canning Vale, Western Australia 6155, P.O.Box 1542, Canning Vale, Western Australia 6970