VIVO

**** Disseminated on Behalf of VivoPower PLC

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VivoPower has an existing operational and cash-generative datacenter in Mo i Rana, Norway, to be converted into an AI facility

VivoPower is an independent Nordic focused sovereign AI digital infrastructure provider with it's anchor asset in Mo i Rana underpinning its Nordic value creation plan

The Nordics is a globally competitive region for data centers

Read the Investor Presentation HERE

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Hello Everyone,

The emergence of artificial intelligence has triggered one of the largest infrastructure expansions in decades. As models have scaled and adoption has moved beyond research settings into widespread commercial and government use, the bottlenecks limiting AI growth have shifted away from algorithms and processors toward the powered land underneath them. This shift has elevated powered land to one of the most critical components in the data center supply chain. Powered land refers to a real estate asset with confirmed, deliverable access to utility-scale electrical power, along with the entitlements, grid interconnection, and permits needed for construction. It marks the distinction between an empty plot and a site genuinely capable of supporting a data center. In a market where electricity supply increasingly dictates where capacity can be built and how fast it can come online, powered land has emerged as a fundamental building block of value in the industry.

Turn your attention to VivoPower (Nasdaq: VIVO).

VIVO develops and operates infrastructure that enables sovereign nations and institutional partners to secure control over power, data, and national intelligence, supporting AI, compute-intensive workloads, and energy transition use cases. Their solutions are designed to operate at industrial scale, underpinned by renewable energy, long-duration power access, and infrastructure-grade execution.

Asset-Light Operating Approach: The company holds a position at the front end of the AI data center supply chain. Instead of building and running IT infrastructure itself, it aims to create value through land acquisition, power sourcing, and extended-term lease agreements. We believe this approach offers exposure to growing AI infrastructure needs while limiting technology and operational risk.

Presence in Favorable Power Regions: The company targets markets with inexpensive renewable power and quick grid interconnection timelines. In particular, the Nordic region offers plentiful hydropower with electricity rates under $0.05/kWh, while the Middle East is seeing rising demand for digital infrastructure fueled by national AI programs.

Live Facility Delivers Near-Term Revenue: VivoPower has built up a pipeline of roughly 182 MW of finished or contracted capacity spanning Norway and the UAE. Its Mo i Rana site in Norway is the only facility currently running, with 41.5 MW of live capacity generating income through hosting third-party Bitcoin mining and taking part in grid ancillary service programs. This asset is expected to serve as a revenue foundation as leadership works toward AI-related growth.

Valuation Grounded in Delivery: At present, VIVO stock is priced at 0.9x enterprise value against our projected 2028 EBITDA of $121.0 million, a steep discount to the peer group average of 11.0x. Our $10 price target is based on a 5.5x EV/2028 EBITDA multiple and a fully diluted share count of 62.6 million. We note that this valuation carries speculative risk and depends on management hitting its stated projections, milestones, and build-out schedule for the Mo i Rana site.
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Investment Highlights

Swing Towards Positive EBITDA – With the closing of the Norway data center acquisition, the company expects to generateroughly $31 million in revenue and $10 million in EBITDA. The company is also expected to generate an additional $1.9 millionin annual EBITDA in Statnett’s reserve markets in Norway.

Substantial Energized Pipeline – The company has approximately 182MW of completed or secured capacity, anchored by itsoperating 41.5MW Mo i Rana site in Norway, which has pending approval for an additional 40MW, as well as a 100MW site inthe UAE.

Low-Cost Energy Edge – The flagship Norway site uses 100% renewable hydroelectric power and has access to costs below$0.035/kWh.

Capital-Light Model – VivoPower’s operating model is a brick-and-mortar property development strategy, in which it generatesrevenue from development and leases to tenants under long-term contracts.

Strategic Backing – The company is supported by a base of long-term strategic shareholders, enabling it to fund and pursueits AI infrastructure initiatives.

Notice the company's front-end placement within the data center landscape. Rather than installing or managing IT equipment, VivoPower concentrates on sourcing, entitling, energizing, and building out powered-shell sites that are rented to hyperscalers, sovereign entities, and other large-scale computing users through extended-term agreements. This approach delivers exposure to demand for foundational AI infrastructure while limiting exposure tied to technology upgrade cycles, equipment usage rates, and daily data center management.

The believe the company's holdings of roughly 182 MW of finished or contracted capacity across Norway and the UAE serve as a key competitive edge, especially as power access increasingly limits new construction worldwide. Availability of inexpensive renewable energy in Nordic markets, with electricity costs under $0.05 per kilowatt-hour, paired with government-fueled demand in the Middle East, could bolster both tenant interest and long-term property values. Consequently, the holdings offer exposure to markets marked by advantageous energy pricing, supportive regulation, and growing demand for AI and data localization capacity.

The holdings are centered on the Mo i Rana site in Norway, the company's sole functioning asset, purchased in April 2026 for roughly $41 million. The facility currently holds 41.5 MW of live capacity fueled by low-cost renewable hydropower, with an additional 40 MW of growth capacity ready for future buildout. The site presently earns income through a deal with a Bitcoin mining tenant that blends fixed infrastructure fees with a share of mining proceeds via profit-sharing terms and involvement in Norway's supplementary grid services markets. Per leadership's projections, the facility should produce roughly $31 million in yearly revenue and $10 million in adjusted EBITDA under its present operating structure, delivering a steady cash flow foundation as the company pushes forward with its AI infrastructure plans.

The current Bitcoin mining agreement is expected to run through June 2027, at which point leadership plans to shift the site's 41.5 MW of live capacity toward AI and high-performance computing uses. Additionally, the company has noted it is in late-stage talks with prospective AI tenants. Per management's projections and goals, this stage should generate roughly $70 million in yearly revenue and upwards of $60 million in yearly EBITDA. Leadership also plans to build an additional 40 MW AI-ready facility using the site's growth capacity. Once the full 81.5 MW AI campus is finished, currently slated for mid-2028, management projects yearly revenue and EBITDA of approximately $140 million and $130 million, respectively.

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VivoPower’s Sustainable Competitive Advantage are Strategic Land and Low-cost Power

Developing digital infrastructure assets for AI-ready data centers, including land permitting and energization, design and build to white space for Tier-1 customers such as sovereign nation AI companies and hyperscaler companies like Google, Microsoft, and Amazon.

Durable key competitive advantages relative to publicly traded peers with multi-Bn-dollar valuations:

Land secured and energized between $50-$500k/MW in strategic business-friendly and renewable energy-abundant locations, including Nordic countries and the Middle East

Access to brownfield land priced substantially below market

Secured low-cost renewable power at sub 5¢ per kWh

Long-duration power contracts to Triple A-rated tenants

Control large powered land portfolios with no GPU delivery and margin compression risks

Unit economics results in recycling of capital every 18 months

As global demand for AI and compute-intensive workloads accelerates, the constraints to growth are land and energy, which are at the core of VivoPower’s portfolio strategy.

VivoPower Becomes a Bricks & Mortar Growth Business with a High Reinvestment Rate of Return