Ceres Power Holdings plc · LSE:CWR
Ceres Power — FY2008/09 Earnings Presentation
27 slides from Ceres Power's earnings presentation, September 2009
Slide 1: Fuel cell products for global energy markets
Fuel cell products for global energy markets Financial Year 2008/09 Preliminary Results September 2009
Slide 2: Disclaimer
Disclaimer This presentation is directed at institutional investors in Ceres Power Holdings plc (the “Company”). The presentation does not constitute a recommendation regarding the shares or other securities of the Company or any of its subsidiaries nor a representation that any dealing in those sha
Slide 3: Highlights
Highlights Financial (FY to 30 June 2009) - Revenue from customers up 32% to £1m - Operating costs up 35% to £10.7m - Capex investment up 91% to £2.1m - Free cash outflow £4.5m - £23m in net cash and financial assets at 30 June 2009 Commercial - Secured new £2.5m funded CHP development & trialling p
Slide 4: Financial Results (FY to 30 June 2009)
Financial Results (FY to 30 June 2009) £m’s ‘09 ∆’08 Revenue from customers 10 1.0 32% Other income 0.5 (42%) Loss for the year (8.0) 60% Capex (2.1) 91% Equity free cash outflow1 (4.4) 12% Net cash & financial assets 23 23.0 0 9Continued strong growth in commercial revenues 9 Investment in manufact
Slide 5: Financial Results (FY to 30 June 2009)
Financial Results (FY to 30 June 2009) Revenue from customers - £1.0m - Includes balance of £1m Alpha Phase pre-payment from British Gas - EDF Energ Energy Net Networks orks demonstration contract completed - Calor Alpha pre-payment & Alpha completion payment from British Gas being recognised as rev
Slide 6: British Gas CHP Contract – Alpha Phase Completed
British Gas CHP Contract – Alpha Phase Completed Key activities completed 9 Fuel cell and key BoP component performance achieved 9 Alpha design for fully integrated, wall-mountable CHP product completed 9 Supply chain partners selected and Fuel Cell Module (FCM) parts procured 9 Build B ild & ttestt
Slide 7: Alpha CHP Products Built & On Test
Alpha CHP Products Built & On Test Go to market specification Alpha CHP Units Electrical rating ~1kW > 0.8 kW Thermal rating Up to 28kW 7kW – 29kW CHP Product efficiency 80 - 90% 87% SEDBUK (Boiler ‘A’ rating ‘A’ rating efficient heat-only) Fuel Type Natural Gas UK Mains Natural Gas CHP Product widt
Slide 8: CHP Unit installed in home-like environment
CHP Unit installed in home-like environment © Ceres Power 2009 8
Slide 9: British Gas CHP Contract – Beta Phase
British Gas CHP Contract – Beta Phase Key activities ¾ Beta design iteration for integrated, wall-mountable CHP product ¾ ‘Go Go to market market’ volume supply agreements for Beta phase and beyond ¾ Selection & instrumentation of in-home commercial field trial sites ¾ Procurement of components for
Slide 10: Proposed Feed-in Tariff in UK (1)
Proposed Feed-in Tariff in UK (1) • UK Government announced a feed-in tariff for small-scale low carbon generation • Implementation targeted for April 2010 • Includes natural gas and LPG fuel cell micro CHP alongside other renewables • Fixed payment for any electricity exported to the grid (5 pence
Slide 11: Proposed Feed-in Tariff in UK (2)
Proposed Feed-in Tariff in UK (2) FIT ‐ illustrative worked example Annual electricity generated by CHP unit 3,500 kW* FIT per kWh on all electricity generated 5p FIT per kWh on electricity generated & exported (say 10%) 5p 3,500 kWh x 5p £175.00 3,500 kWh x 5p x 10% £17.50 Annual value of FIT £192.
Slide 12: Predicted CHP Energy Savings Independently Confirmed
Predicted CHP Energy Savings Independently Confirmed • Independent confirmation by Element Energy • Energy consultancy advising Government on low-carbon issues • Experts E t in i energy use iin b buildings ildi & ttechno-economic h i modelling d lli • Element Energy confirmed energy savings potentia
Slide 13: Predicted CHP Carbon Savings Independently Confirmed
Predicted CHP Carbon Savings Independently Confirmed • Independent confirmation by Oxera • Macro economic consultancy specialising in energy sector • Model of actual UK energy system including individual power plants (used by industry & Government) • Oxera confirmed carbon savings potential based on
Slide 14: Commercial – Off Gas Grid Residential CHP
Commercial – Off Gas Grid Residential CHP • Major new agreement with Calor to bring Ceres fuel cell residential CHP Product to customers not connected to the mains natural gas (NG) network (‘off gas grid’) - UK's leading LPG supplier, over 70 years experience - Part of SHV Gas, world’s largest distr
Slide 15: Off Gas Grid Residential CHP - Opportunity
Off Gas Grid Residential CHP - Opportunity • New LPG product to address homes & small businesses currently using LPG, solid fuel, oil or conventional electric heating - >2 million such properties in the UK - LPG CHP represents a clean, convenient and cost-competitive energy option (lower carbon than
Slide 16: Ceres Manufacturing Strategy
Ceres Manufacturing Strategy • Ceres manufactures IP-rich fuel cell technology in-house and partners with boiler assembly companies • Ceres owns & controls complete CHP design (incl. IP) • Ceres sells complete CHP products (captures ‘product-level’ revenues) • Leverages existing boiler design know-h
Slide 17: Evaluation by AEA of Ceres CHP Product
Evaluation by AEA of Ceres CHP Product • AEA completed an evaluation of Ceres CHP product, including a review of • CHP design • Details of manufacture, supply and assembly processes • Bill of materials (BOM) • Costs for BOM based on: actual costs costs, supply agreements agreements, firm quotations
Slide 18: Ceres Mass Manufacturing Facility
Ceres Mass Manufacturing Facility Mass manufacturing facility (50,000 sq ft / 5,000 m2) - Volume fuel cell manufacturing & assembly of fuel cell stacks & modules • Meets requirements for Beta & Gamma field trials & volume product launch • To include product testing facility, QA/QC - Phased ased inve
Slide 19: Ceres Mass Manufacturing Facility
Ceres Mass Manufacturing Facility © Ceres Power 2009 19
Slide 20: Boiler Assembly Partner
Boiler Assembly Partner • Ceres has entered long-term assembly agreement with Daalderop BV - Well-established (> 50 years) - Privately owned (majority shareholder is 3i) - Purpose-built manufacturing facility - Heating appliance production capacity 200 200,000 000 units p p.a. a - Won awards in UK a
Slide 21: Boiler Assembly Partner
Boiler Assembly Partner © CeresPower 2009 21
Slide 22: Ongoing Strengthening of Management Team
Ongoing Strengthening of Management Team Non-Executive directors - John Nicholas, former FTSE 100 Group Finance Director, appointed Non- Executive Director and Chairman of Audit Committee - Sir David Brown appointed as Senior Independent Director (‘SID’) - Technology gy & Operational p Risk Committe
Slide 23: Ceres 2009 CHP Outlook
Ceres 2009 CHP Outlook Time Product / Technology Manufacturing Q1 2009 9Testing Alpha CHP Product performance 9Secure Mother Plant site 9 Commence Beta Phase (design iteration 9Selection of Mother Plant underway) fit-out fit out contractors and initial machine procurement begins Q2 2009 9Sign-off of
Slide 24: Summary
Summary Financial position - Net cash & financial assets of £23m at June ‘09 - Re en e gro Revenue growth th up p 32% to £1m - Cash invested in UK gilts, bank deposits and ‘AAA’ – rated money market funds Operations p - 50,000 sq. ft Horsham mass manufacturing facility secured & fit-out completed -
Slide 25: Appendices
Appendices © Ceres Power 2008 25
Slide 26: © Ceres Power 2008
CeresPower : © Ceres Power 2008 26
Slide 27: Ceres Power Limited contact details
Ceres Power Limited Unit 18 Denvale Trade Park Haslett Avenue East Crawley RH10 1SS United Kingdom Phone: +44 ((0)) 1293 400 404 Fax: +44 (0) 1293 400 482 E-Mail: info@cerespower.com www cerespower com www.cerespower.com © Ceres Power 2008 27
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