RESULTS PRESENTATION AUGUST 2018 LONDON

Transcription

1 RESULTS PRESENTATION AUGUST 2018 LONDON New Factory: Grounds 30,000 m2, Floor Space 11,610 m2 Shell, Rheinland Refinery, Germany

2 RESULTS PRESENTATION AUGUST 2018 LONDON Presentation Contents: What we do Results Infographic Summary of Results Recognised Revenue A Company in Transition Recognised New Production Revenue Plant Revenue Generating Assets Corporate Developments Sumitomo Corporate visit hosted by ITM Powers Chairman Prof Roger Putnam CBE and NXD Sir Roger Bone CONTENTS 2

3 ITM POWER WHAT WE DO ITM Power manufactures integrated hydrogen energy systems Power-To-Gas Renewable Electricity ITM Electrolyser Clean Fuel Water Renewable Chemistry ITM POWER WHAT WE DO 3

4 RESULTS INFOGRAPHIC 4

5 KEY FINANCIAL RESULTS FINANCIAL: Total Revenue & Grant Funding of 14.1m (2017: 9.2m) up 53%, comprising: Product revenue - 3.3m (2017: 2.4m) up 36% Grant income recognised on the income statement - 4.1m (2017: 4.2m) down 0.5% Grant income recognised on the balance sheet - 6.7m (2017: 2.7m), up 152% Loss from operations 6.5m (2017: 3.6m), up 83%, including 0.9m of one-off items. EBITDA loss of 4.8m (previously announced as 5.0m) (2017: 2.3m) Available cash balance of 20.4m at year-end (2017: 1.6m) post the Dec 2017 fund raise Net current assets excluding stock of 30.1m (2017: 7.4m) CORPORATE: New factory premises identified and heads of terms agreed, detailed space planning underway Significant investment in expansion of the manufacturing and after sales support teams Creation of Australian subsidiary, ITM Power Pty Ltd, and appointment of Dr Neil Thompson as MD Recognised Revenue Appointment of Andy Allen as Financial Director Working Capital Funding Round successfully raising 29.4m gross via a placing and open offer Non-contracted tender opportunity pipeline increased to over 250m (September 2017: 200m), illustrating the growth in the hydrogen economy KEY FINANCIAL RESULTS 25

6 RECOGNISED REVENUE Strong sustained growth: 14.1m up 53% YoY Ahead of expectations (broker note: 12.8m) Ratio of sales grants moving towards sales in 2019 Asset ownership steadily increasing Losses include 0.9m of one off costs RECOGNISED REVENUE 26

7 A COMPANY IN TRANSITION Skills Training Expansion: Investing in production skills Investing in the BD and sales function Transitioning from an R&D organisation A COMPANY IN TRANSITION 27

8 m WORKING CAPITAL BRIDGE 40,000 NET CURRENT ASSETS 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Current Assets 2017 Net Fund Raise Cash on guarantee Stock Trade and other receivables Trade and other payables Provisions Current Assets 2018 KEY FINANCIAL RESULTS 28

9 POTENTIAL HYDROGEN SALES Strong sustained growth of revenue generating assets: Currently 16 tonnes 160k of hydrogen sales Up 700% YoY New fleet of 200 FCEVs are not included FY19 and FY20 estimates assume 112 and 258 cars average 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 Fuel sales Station Status Opening Electrolyser Dispenser Potential Sales (kg/day) (kg/day) ( pa) Riverside USA Open ,000 Rotherham Open ,000 Teddington Open ,000 Rainham Open ,000 Cobham Open ,000 Beaconsfield Open ,000 Kirkwall Commissioning Sep ,460,000 Swindon Commissioning Sep ,000 Gatwick Construction Q ,000 Birmingham Bus Construction Q ,066,000 Brimingham Public Construction Q Derby Funded Q ,000 Central London Funded Q ,000 W London Funded Q , ,271,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - FY17 FY18 FY19E FY20E Fully utilised Actual fuel sales Projected fuel sales POTENTIAL HYDROGEN SALES 29

10 TENDER OPPORTUNITY PIPELINE A developing assessment and qualification process: Must have been tendered in the last 12 months Must have a project ready to go with finance in place Must be expected to happen within three years Tender opportunity pipeline is increasing September 2017 (1) August 2018 Recognised Revenue 200m+ 250m+ (1) At the equity fund raise TENDER OPPORTUNITY PIPELINE 10 2

11 TRANSITION STANDARDISATION CAPACITY PRODUCT OFFERING CUSTOMER ENGAGEMENT MARKET DEVELOPMENTS

12 PATHWAY TO PROFITABILITY Product Standardisation Production Capacity Clear Market Offering Definition of 2MW module & 10MW stack skid Enables efficiencies in manufacture & test Well defined cost & trajectory Modular system provides flexibility of offering New projects all specified using known modules Minimises design time & cost for each project Scalable to 100MW with balance of plant Standard 2MW Stack Module A COMPANY IN TRANSITION 12 2

13 PATHWAY TO PROFITABILITY Product Standardisation Production Capacity Clear Market Offering Definition of 2MW module & 10MW stack skid Enables efficiencies in manufacture & test Well defined cost & trajectory Modular system provides flexibility of offering New projects all specified using known modules Minimises design time & cost for each project Scalable to 100MW with balance of plant Standard 10MW Stack Skid A COMPANY IN TRANSITION 13 2

14 PATHWAY TO PROFITABILITY Product Standardisation Production Capacity Clear Market Offering Colocation into new production facility Manufacturing space increased by 5x Adoption of semi-automated stack component preparation Increase of power on-site to allow testing of larger systems Heads of terms agreed Costs in-line with expectations Production capacity in the current S2 facility A COMPANY IN TRANSITION 14 2

15 PATHWAY TO PROFITABILITY Product Standardisation Production Capacity Clear Market Offering Flagship 10MW project with Shell Largest PEM electrolyser in the world Largest refinery in Germany Benefit of Shell engineering & permitting rigor Excellent reference plant & customer Strong engagement from refinery hydrogen sector 10MW Stack Skid in Shell Refinery building 10MW Electrolyser System in Shell Refinery building A COMPANY IN TRANSITION 15 2

16 PATHWAY TO PROFITABILITY Product Standardisation Production Capacity Clear Market Offering Large scale projects require significant development Project development strategy includes early engagement via feasibility planning Leveraging the 10MW project by showing ITM has a head start Five example projects to indicate engagement Customer Engagement Feasibility Study Front End Engineering Design Procurement Decision Feasibility Study Scale Partner Status UK P2G 50MW NGN Completed British Columbia 300MW Chyioda, BC Hydro Active Massachusetts 20MW Holyoke Active Undisclosed 100MW Undisclosed Active A COMPANY IN TRANSITION 16 2

17 Power-To-Gas Power-To-Gas Storage: 30m UK Gov hydrogen cost reduction funding UK Gov P2G feasibility study Shell Wessling refinery Clean Fuel Hydrogen Fuel: OLEV 14m funding TBA shortly Toyota truck and bus New Nexo Hyundai vehicle GM FC platform FCHJU JIVE I & II bus projects FC buses in China Renewable Chemistry Renewable Chemistry and Refineries: Akzo Nobel & Gasunie; green hydrogen Yara: Renewable Ammonia Siemens and Evonik; P2L MARKET DEVELOPMENTS 17

18 SUMMARY Company in transition Large scale projects require significant development Accelerating global momentum in the hydrogen industry The potential markets for hydrogen are diverse, global and huge ITM Power is well placed to exploit these growing markets Rapid transition into commercial sales Blue chip client and partner base SUMMARY 18 2

19 RESULTS PRESENTATION AUGUST 2018 LONDON New Factory: Grounds 30,000 m2, Floor Space 11,610 m2 Shell, Rheinland Refinery, Germany