VEEM LTD — Investor Presentation 2021

May 12, 2021

ASX MEDIA RELEASE 13 May 2021

MANAGING DIRECTOR TO PRESENT

VEEM GYRO UPDATE

VEEM Limited (ASX: VEE) (‘VEEM’ or ‘the Company’), 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, is pleased to advise that Managing Director, Mark Miocevich, will today host a webinar to present an update on both the completion of sea trials for the first ever VG1000SD VEEM Gyro installation and finalisation of an estimate of the current total potential market for VEEM Gyros. Slides are attached and details of the webinar are:

Date: Thursday, 13 May 2021 Time: 11.00am AEST/9.00am AWST

Registration: registration available here

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

Further information:

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

ABOUT VEEM LIMITED (ASX: VEE)

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 14,700 sqm purpose-built fabrication and manufacturing facility, including Australia’s largest non-ferrous foundry. VEEM employs approximately 180 staff in Australia, including graduates and apprentices, and maintains a highly skilled research and development team in-house. Celebrating its 50th anniversary in business in 2018, VEEM listed on the Australian Securities Exchange in 2016. www.veem.com.au

FOLLOW US ON SOCIALS

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• linkedin.com/company/veem ltd/ twitter.com/VEEM_Ltd

VEEM LIMITED ASX: VEE

Canning Vale, veem.com.au Western Australia 6970

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VEEM LTD VEEM LTD INVESTOR PRESENTATION

DISCLAIMER

THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR ADVERTISEMENT

This document, including the information contained in this disclaimer, is not a prospectus, product disclosure statement or other disclosure document and does not constitute, or form any part of, an offer to sell, or a solicitation of an offer to buy, the Shares. This document does not constitute an invitation, offer or recommendation to apply for or purchase the Shares and does not contain any application form for the Shares. This document does not constitute an advertisement for an offer or proposed offer of the Shares. Neither this document nor anything contained in it shall form the basis of any contract or commitment and it is not intended to induce or solicit any person to engage in, or refrain from engaging in, any transacti on. No person is authorised to give information or make any representation in connection with any Public Offer which is not contained in this document. Any information or representation not so contained may not be relied on as being authorised by the Company, the Lead Manager or any person assoc iated with them. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States absent registration under the Securities Act or in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable U.S. state securities laws.

DISTRIBUTION

Distribution of this document outside Australia may be restricted by law. Persons who come into possession of this document who are not in Australia should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

NO LIABILITY

The Company has prepared this document based on information available to it at the time of preparation, from sources believed to be reliable and subject to the qualifications in this document. To the maximum extent permitted by law, Limited Parties accept no responsibility or liability for the contents of his document and make no recommendation or warranties concerning any Public Offer. No representation or warranty, express o r implied, is made as to the fairness, accuracy, adequacy, validity, correctness or completeness of the information, opinions and conclusions contained in this document. To the maximum extent permitted by law, none of the Limited Parties accepts any responsibility or liability including, without l imitation, any liability arising from fault or negligence on the part of any person, for any loss whatsoever arising from the use of this document or its contents or otherwise arising in connection with it.

Neither of the Lead Manager, nor any of its affiliates, related bodies corporate (as that term is defined in the Corporations Act) and their respective directors, employees, officers, representatives, agents, partners, consultants and advisers have authorised, permitted or caused the issue, lodgement, submission, despatch or provision of this document, and none of them make or purport to make any statement in this document and there is no statement in this document which is based on any statement by them.

PAST PERFORMANCE

Past performance information in this document is given for illustration purposes only and should not be relied upon as (and i s not) an indication of future performance. Actual results could differ materially from those referred to in this document.

FORWARD-LOOKING STATEMENTS

Certain statements, beliefs and opinions contained in this document, particularly those regarding the possible or assumed fut ure financial or other performance of the Company, industry growth or other trend projections are or may be forward looking state ments. Forward-looking statements can be identified by the use of 'forward-looking' terminology, including, without limitation, the terms 'believes', 'estimates', 'anticipates', 'expects', 'predicts', 'intends', 'plans', 'propose', 'goals', 'targets', 'aims', 'outlook', 'guidance', 'forecasts' , 'may', 'will', 'would', 'could' or 'should' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond the Company's ability to control or predict which may cause the actual results or performance of the Company to be materially different from the results or performance expressed or implied by such forward-looking statements. Forwardlooking statements are based on assumptions and contingencies and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward looking statements may be based are reasonable. None of the Company, the Lead Manager or any other Limited Party, makes any representation or warranty as to the accuracy of any forward looking statements contained in this document. Forward-looking statements speak only as at the date of this document and the Limited Parties disclaim any obligations or undertakings to release any update of, or revisions to, any forward-looking statements in this document. All dollar values contained in this document are in Australian dollars (A$) unless otherwise stated.

NOT FINANCIAL PRODUCTADVICE

No attempt has been made to independently verify the information contained in this document. You should make your own assessment in considering an investment in the Company and should not rely on this document. In all cases, you should conduct your own investigations and analysis of the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Company and its business, and the contents of this document. This document is not, and should not be construed as, a recommendation by the Company, related bodies corporate (as that term is defined in the Corporations Act), or any of their respective officers, employees, directors, shareholders, partners, representatives, agents, consultants or advisers or any other party referred to in this document (each a Limited Party and, together, the Limited Parties ) to invest in the Company. The information in this document is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this document constitutes legal, financial, tax or other advice. The information in this document does not take into account the particular investment objectives, financial situation or needs of any person. You should seek legal, financial, tax and other advice appropriate to your jurisdiction.

2

VG1000SD VEEM GYRO MAIDEN SEA TRIALS

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3

Results Significantly Better than Expected

The first ever VG1000SD VEEM Gyro, the world’s most powerful marine gyrostabilizer, was installed onto the “MV Leonardo”,

“MV Leonardo” is a Damen built FCS5009 vessel owned by Naviera Integral, an offshore oil field supply contractor in the Gulf of Mexico which owns and operates a fleet of Damen FCS workboats.

After some delays due to COVID-19, commissioning and sea trials were held in April 2021 during normal offshore operations in the Gulf of Mexico.

During the sea trials roll motion data was recorded with roll reduction measurements exceeding customer expectations.

Damen, VEEM and Naviera Integral are all pleased with the result which affirms the significant benefits the VG1000SD VEEM Gyro will provide to commercial offshore operators.

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The MV Leonardo with the VG1000SD VEEM Gyro installed on the deck (below the yellow crane boom) ahead of sea trials. Anecdotally, Damen representatives and crew on board during the Damen FCS Vessel trials were very impressed with the vessel comfort and performance when the VEEM Gyro was turned on.

These results will now be used by Damen to recommend the installation of a VEEM Gyro when marketing their FCS range of vessels.

4

Significant Supply Agreement with Damen Shipyards

VEEM signed a three-year frame agreement with Damen Shipyards in October 2020 for the supply of VEEM Gyros.

Damen sells 175 small ships per year, including 20 FCS vessels. They are the largest small ship builder in the world and the second large shipbuilder in Europe.

On top of new builds, retrofitting a VEEM Gyro to an existing FCS vessel is generally straightforward and there is a significant fleet of FCS vessels already in service. The retrofit market is huge.

Damen will offer the VEEM Gyro as an option on its FCS vessels and will continue to work with VEEM to incorporate VEEM Gyros into additional Damen platforms and vessels in the near term.

Damen’s adoption of the VEEM Gyro technology is a major step in terms of acceptance in the large commercial market and follows Damen’s initial two orders of VEEM’s VG1000SD gyros in 2019 and 2020 which were for FCS vessels.

The addition of the VEEM Gyro to the FCS vessel is expected to increase the customer’s commercial return due to the significantly increased number of operating days per annum and replacement of helicopters for crew transfers.

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Damen FCS Vessel
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“We have found through rigorous testing that VEEM Gyros are very complementary technology to our designs in terms of safety, comfort and performance. Now we have the frame agreement with VEEM, Damen will commence offering VEEM Gyros to customers as an option on our FCS range.

“Damen will continue to work with VEEM to incorporate the VEEM Gyros into additional Damen platforms and vessels in the near term.”

Mr David Stibbe, Corporate Manager, Damen Shipyards

5

THE WORLD’S MOST POWERFUL MARINE GYROSTABILIZER

VG1000SD/VG520SD VEEM GYRO

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The VG1000SD VEEM Gyro (now named the VG520SD) is the most powerful marine gyrostabilizer in the world generating 1000 kN.m of stabilizing torque and 520 kN.m.s (kilonewton metre seconds) of angular momentum. There is no alternative to the VG1000SD in the large heavy-duty marine stabilization market.

6

VEEM Gyro Potential Market Size by Segment

Commercial

Defence

Superyachts

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Potential Market Size: Order book – US$0.7bn Fleet – US$9.6bn

Potential Market Size: Order book – US$0.1bn Fleet – US$1.4bn

Potential Market Size: Order book – US$0.3bn Fleet – US$2.5bn

Total Potential Gyro Market Size US$14.6bn

7

Total VEEM Gyro Potential Market Snapshot – Order Book

	Vessel Size	Superyacht1	Commercial2	Defence3	Total	VEEM Gyro
	(length)	Order Book	Order Book	Order Book	Order Book	Model4
	24 - 30m	281	164	-	445	VG52/120SD (prev. VG120SD)
	30 - 45m	262	331	37	630	VG70/145SD (prev. VG145SD)
						VG100/200SD
	45 - 60m	95	148	20	263	&
						VG140/260SD
						(prev. VG260SD)
	60 - 75m	47	157	26	230	& VG520/1000SD
						(prev. VG1000SD)
	75 - 90m	25	158	18	201	VG520/1000SD (multiple)
	Total Vessels	710	958	101	1,769
	Potential Gyro Market	US$0.3bn	US$0.7bn	US$0.1bn	US$1.1bn

1. For superyacht market detail, source and assumptions refer to slide 16.

2. For commercial market detail, source and assumptions refer to slides 12-15.

3. For defence market detail, source and assumptions refer to slides 10-11.

4. space and intended usage profile.

8

Total VEEM Gyro Potential Retrofit Market Snapshot

	Vessel Size	Superyacht1	Commercial2	Defence3	Total	VEEM Gyro
	(length)	Fleet	Fleet	Fleet	Fleet	Model4
	24 - 30m	4,929	7,229	480	12,638	VG52/120SD (prev. VG120SD)
	30 - 45m	3,273	8,349	720	12,342	VG70/145SD (prev. VG145SD)
						VG100/200SD
	45 - 60m	721	3,063	831	4,615	&
						VG140/260SD
						(prev. VG260SD)
	60 - 75m	221	2,027	298	2,546	& VG520/1000SD
						(prev. VG1000SD)
	75 - 90m	89	1,277	175	1,541	VG520/1000SD (multiple)
	Total Vessels	9,233	21,945	2,504	33,682
	Potential Gyro Market	US$2.5bn	US$9.6bn	US$1.4bn	US$13.5bn

1. For superyacht market detail, source and assumptions refer to to slide 16.

2. For commercial market detail, source and assumptions refer to slides 12-15.

3. For defence market detail, source and assumptions refer to slides 10-11

4. 4.This table groups vessels in to sizes that would typically be suited to a particular Gyro model. This is for guidance only and it should be noted that optimal Gyro sizing can depend on many vessel factors, including hull shape, stability characteristics, displacement, available space and intended usage profile.

9

Defence/Security Market Snapshot

Data source: Publicly Available Data

All defence/security vessels[1]

Patrol boats only[2]

Total potential retrofit market is US$1.4bn from a total fleet size of 2,504 vessels.

Current estimated operating fleet represents a potential retrofit market of US$0.5bn comprised of 1,065 vessels.

Current order book, including those in-build, represents a target market of US$0.1bn comprised of 101 vessels.

Current order book, including those in-build, represents a target market of US$0.1bn comprised of 72 vessels.

Total potential market for current fleet and new builds is US$1.5bn for a total of 2,605 vessels.

Total potential market is $0.6bn comprised of 1,137 vessels including the current fleet, orders and builds in progress.

1.All defence/security vessels includes vessels between 24 and 90m. Excludes China, Hong Kong, North Korea and a number of smaller countries with very small fleets where data was not considered reliable. 2. Includes Offshore, Coastal, Fast and Riverine Patrol Vessels. Same assumptions as in 1. above.

10

Defence/Security Market Snapshot

Data source: Public Data

Vessel Size	Operating Fleet	Order Book	Operating Fleet	Order Book	VEEM Gyro
(length)	Total Vessels#	Total Vessels#	Patrol Boats only^	Patrol Boats only^	Model*
	(excl. order book)		(excl. order book)
24 - 30m	480	-	321	-	VG52/120SD (prev. VG120SD)
30 - 45m	720	37	336	21	VG70/145SD (prev. VG145SD)
					VG100/200SD
45 - 60m	831	20	263	20	&
					VG140/260SD
					(prev. VG260SD)
60 - 75m	298	26	88	23	& VG520/1000SD
					(prev. VG1000SD)
75 - 90m	175	18	57	8	VG520/1000SD (multiple)
Total	2,504	101	1,065	72
Potential Gyro Market	US$1.4bn	US$0.1bn	US$0.5bn	US$0.1bn

*This table groups vessels in to sizes that would typically be suited to a particular Gyro model. This is for guidance only and it should be noted that optimal Gyro sizing can depend on many vessel factors, including hull shape, stability characteristics, displacement, available space and intended usage profile.

All defence/security vessels includes vessels between 24 and 90m (including patrol boats). Excludes China, Hong Kong, North Korea and a number of smaller countries with very small fleets where data was not considered reliable. ^ Includes Offshore, Coastal, Fast and Riverine Patrol Vessels. Same assumptions as in # above.

11

Commercial Market Snapshot[1]

Data source: IHS Markit Maritime and Trade[2]

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Total potential market is US$10.3bn comprised of 22,903 vessels including orders and builds in progress.

Current order book, including those in-build, represents a target market of US$0.7bn comprised of 958 vessels.

Current estimated operating fleet represents a potential retrofit market of US$9.6bn comprised of 21,945 vessels.

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1. Refer to slide 15 for assumptions, details and definitions on the data.

2. IHS Markit Maritime and Trade provide the data on vessel numbers and sizes only, not financial data.

12

Commercial1 Retrofit Market Snapshot – Operating Fleet

Data source: IHS Markit Maritime and Trade

	Vessel Size	Offshore1	Miscellaneous1	Fishing1	Dry/Cargo/	Total	VEEM Gyro
	(length)				Passenger1		Model2
	24 - 30m	104	5,253	1,753	119	7,229	VG52/120SD (prev. VG120SD)
	30 - 45m	764	4,506	2,425	654	8,349	VG70/145SD (prev. VG145SD)
							VG100/200SD
	45 - 60m	1,210	394	1,043	416	3,063	&
							VG140/260SD
							(prev. VG260SD)
	60 - 75m	686	192	843	306	2,027	& VG520/1000SD
							(prev. VG1000SD)
	75 - 90m	701	123	273	180	1,277	VG520/1000SD (multiple)
	Total	3,465	10,468	6,337	1,675	21,945
	Potential Gyro Market	US$3.0bn	US$2.7bn	US$2.8bn	US$1.1bn	US$9.6bn

1. Refer to slide 15 for assumptions, details and definitions on the data.

2. This table groups vessels in to sizes that would typically be suited to a particular Gyro model. This is for guidance only and it should be noted that optimal Gyro sizing can depend on many vessel factors, including hull shape, stability characteristics, displacement, available space and intended usage profile.

13

Commercial1 Market Snapshot – Order Book

Data source: IHS Markit Maritime and Trade

	Vessel Size	Offshore1	Miscellaneous1	Fishing1	Dry/Cargo/	Total	VEEM Gyro
	(length)				Passenger1		Model2
	24 - 30m	6	130	26	2	164	VG52/120SD (prev. VG120SD)
	30 - 45m	31	257	29	14	331	VG70/145SD (prev. VG145SD)
							VG100/200SD
	45 - 60m	26	72	35	15	148	&
							VG140/260SD
							(prev. VG260SD)
	60 - 75m	87	13	46	11	157	& VG520/1000SD
							(prev. VG1000SD)
	75 - 90m	72	31	42	13	158	VG520/1000SD (multiple)
	Total	222	503	178	55	958
	Potential Gyro Market	US$0.3bn	US$0.2bn	US$0.2bn	US$0.05bn	US$0.7bn

1. Refer to slide 15 for assumptions, details and definitions on the data.

2. This table groups vessels in to sizes that would typically be suited to a particular Gyro model. This is for guidance only and it should be noted that optimal Gyro sizing can depend on many vessel factors, including hull shape, stability characteristics, displacement, available space and intended usage profile.

14

Commercial Market Assumptions

Data source: IHS Markit Maritime and Trade

Criteria for the dataset - self-propelled, oceangoing, light displacement <3,000t, single-hull. Vessels built before 2000 are excluded for all types except Offshore >60m which excludes vessels built before 2010..

Ship types included:

• “ Offshore ” includes Offshore Support Vessel, Crew/Supply Vessel, Platform Supply Ship, Standby Safety Vessel, Accommodation Ship, Offshore Tug/Supply Ship, Diving Support Vessel, Anchor Handling Tug Supply, Pipe Layer, Pipe Carrier, Pipe Layer Crane Vessel and Pipe Burying Vessel

“ Miscellaneous ” includes Work/Repair Vessel, Tug, Lighthouse Tender, Crane Vessel, Salvage Ship, Utility Vessel, Patrol Vessel (eg. Coast guard, fisheries etc, excludes those included in the defence market segment), Research Survey Vessel, Cable Repair Ship, Training Ship, Fire Fighting Vessel, Hospital Vessel, Search & Rescue Vessel, Icebreaker, Crew Boat, Buoy Tender, Supply Tender, Buoy & Lighthouse Tender, Exhibition Vessel, Pilot Vessel, Waste Disposal Vessel, Pollution Control Vessel, Mission Ship, Cable Layer, Icebreaker/Research, Effluent carrier, Theatre Vessel, Tank Cleaning Vessel, Anchor Handling Vessel, Pile Driving Vessel, Incinerator, Mooring Vessel and Trans Shipment Vessel

• “ Fishing ” includes Fishing Vessel, Fishery Support Vessel, Fishery Patrol Vessel, Fish Carrier, Fish Factory Ship, Fishery Research Vessel and Fish Farm Support Vessel

• “ Dry/Cargo/Passenger ” includes Passenger Ship, Passenger/Ro-Ro Ship (Vehicles), General Cargo/Passenger Ship, Passenger/Cruise and Passenger/Ro-Ro Ship (Vehicles/Rail)

The following status are included:

Fleet - In Service/Commission, Launched, In Casualty Or Repairing, Converting/Rebuilding. Laid-Up vessels are not included Order Book - Keel Laid, Projected, Under Construction, On Order/Not Commenced

Data is as at 18 April 2021.

15

Superyacht Market Snapshot

Data source: SuperYacht Times

Current order book of 710 vessels represents a target market of over US$260m for VEEM Gyro Sales. Fleet growth over the past five years has been 2.7% (CAGR).

Current addressable superyacht operating fleet of 9,233 vessels provides a large retrofit market. Fleet size increased 1.7% during 2020.

Construction book of superyachts by size (1 Jan 2021)

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350
300
250
200
150
100
50
0
2016 2017 2018 2019 2020 2021
24-30m 30-45m 45-60m 60-75m 75-90m
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	Vessel Size	Operating Fleet	Order Book	VEEM Gyro
	(length)	Total Vessels	1 Jan 2021	Model*
	24 - 30m 30 - 45m	4,929 3,273	281 262	VG52/120SD (prev. VG120SD) VG70/145SD (prev. VG145SD)
				VG100/200SD
	45 - 60m	721	95	&
				VG140/260SD
	60 - 75m	221	47	(prev. VG260SD) & VG520/1000SD
				(prev. VG1000SD)
	75 - 90m	89	25	VG520/1000SD (multiple)
	Total Vessels	9,233	710
	Potential Gyro Market	US$2.5bn	US$0.3bn

*This table groups vessels in to sizes that would typically be suited to a particular Gyro model. This is for guidance only and it should be noted that optimal Gyro sizing can depend on many vessel factors, including hull shape, stability characteristics, displacement, available space and intended usage profile.

16

Corporate Overview

Corporate Snapshot
ASX Code	VEE
Share Price(12 May 2021)	$1.10
Market Capitalisation (12 May 2021)	$143m
Shares on Issue	130m
Substantial Shareholders
Miocevich Family	61.54%
Perennial Value Management	13.12%

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12-MONTH SHARE PRICE PERFORMANCE
2 $1.20
1.8
$1.00
1.6
1.4
$0.80
1.2
1 $0.60
0.8
$0.40
0.6
0.4
$0.20
0.2
0 $0.00
Volume Close
Millions
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17

VEEM LTD

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Contact

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