Another Energy Optimiser @15% of BUD mcap

VIVID TECHNOLOGY LTD (VIV) (Part 1)
SUMMARY ANALYSIS
MCAP: $26.2M @ 5.5c
Business:

Vivid Technology Limited is a diversified Australian-based company with interests in technology focused solutions in the industrial energy efficiency and CO2-to-fuel conversion markets. It provides customised, intelligent and energy efficient cloud-based solutions for its growing industrial and infrastructure client base. The "internet of lights" and "cloud-based monitoring" delivers quantifiable efficiencies and significant cost savings with environmentally sustainable benefits for their customers. The business’ core technologies are designed for application in warehouses, distribution centres, cold storage facilities, ports, stadiums, car parks, roads and tunnels amongst others.

It has 2 focus areas of business – its world class MATRIXX® Intelligent LED lighting platform which is currently its major revenue contributor (and much of the focus of this analysis going forwards) and NewCO2Fuels which was formed to develop and commercialise an innovative system to profitably produce fuels from CO2 and water and now pending further collaboration with Sinopec

What to like about VIV?

• Under the Radar Stock

• Great Value Proposition in Today’s Operating Environment

Energy Costs and Carbon emission are today’s priorities on the economic agenda with soaring energy costs and environmental concerns and VIV offers state-of-the-art solutions to reduce and address both.

VIV’s Australian designed and manufactured Matrixx Intelligent LED lighting platform has a unique capability as a highly effective “industrial internet of things (IoT)” lighting platform that consistently generated benchmark energy savings in excess of 80%, significantly reducing energy cost and life cycle environmental impact. For example, Coca Cola Amatil , one of VIV’s customers made a whopping 91.7% energy savings through rollout of VIV lighting solution at their Peats Ridge facility.




Source: Vivid Technology

Another customer testimonial from Arnotts https://utenant.com.au/blog/how-arnotts-cut-energy-consumption-by-85-with-vivid-industrial-intelligent-lighting

Matrixx® is the only lighting system available that is capable of understanding and adapting to its environment in real time. As an Industrial Internet of Things (IIoT) lighting platform, Matrixx® provides a singular integrated solution for whole of site applications. The entire system is designed with embedded sensors to manage temperature and light levels and communicate data back to an onsite network controller and then via Cloud Konnekt™ to a central web portal. This architecture provides three levels of control: local, network and cloud delivering maximum control and independent operation.This architecture provides unparalleled control to our clients & enables Vivid Industrial to adjust and manage the system, on behalf of our clients:In real time From anywhere in the world Without sending a technician to the site.This communication architecture provides a rich stream of data enabling visulations of system performance through Klarity®.This locks in performance and savings and allows business to focus on their core activities.

http://blog.cemat.com.au/4-technology-solutions-leading-innovation-in-intralogistics

Matrixx Intelligent Lighting produces Industry best efficiency less than 1 watt per m3 and its Smart Flector produces a shaped beam that places light only where it is needed, and ensuring high light output at minimal power needed.
With Matrixx, energy use and cost is reduced and the lifetime extended. Matrixx®’s modular design allows it to adapt to_incorporate new technology advances over time – without the need to be fully replaced.

Matrixx also provides rich data insight to the customer’s environment via its core IoT communications platform Cloud Konnekt™ together with Klarity™ (Vivid Technology’s data analytics system) which currently collate over 3 million data points annually from each intelligent lighting node installed. Data collated is also analysed to allow predictive maintenance capabilities which optimises maintenance costs and extends product reliability.
What is compelling about Matrixx is that its ROI for customers is just less than 1 year. With the Matrixx platform, service life is indefinite because the entire system and all its components are serviceable, maintainable and replaceable- which is in stark contrast to all other industrial LED lights where component failure requires replacement of the entire fixture.

LINFOX’s adoption of VIV Matrixx is a strong vindication and validation of VIV’s innovative and superior energy saving lighting technology. In addition, VIV is also collaborating with CSIRO on research and development of their locally made industrial lighting product range to further differentiate its capability in the market;

https://www.csiro.au/en/Research/MF/Areas/Chemicals-and-fibres/Materials-for-industry-and-environment/Coatings-and-surfaces/Fast-and-Furious

• Large Global Addressable Market

VIV’s Area under Light (AUL) footprint is currently just a small fraction of the large US$2.6 billion per annum Australian Addressable Lighting Market and $110 Billion per annum globally.

Its success to date is largely domestic but is gaining traction in other parts of the world (see below).