Ceres Power Holdings Plc · LSE:CWR
Ceres Power — FY2020 Earnings Presentation
26 slides from Ceres Power's earnings presentation, Sep 28, 2020
Slide 1: Interim Results for the 12 months ended 30 June 2020
Slide 2: Strategic partnerships continue to deliver commercial growth
_TS strategic partnerships continue to deliver commercial growth + Progress on major contracts has driven a 21% increase in revenue and other operating income to £19.9m. Asset-light licencing model continues to underpin sector-leading gross margins of 73% + The hard work of the Ceres team, and the s
Slide 3: Progress with key commercial partnerships
_/ Progress with key commercial partnerships (® BOSCH ¢ First partner to manufacture Ceres’ core cell technology under licence * Installed prototype products of its 10kW SOFC system at five Bosch locations © Ceres Power Ltd 2020 WEICHAI 30kW range extender for electric buses progressing to field tri
Slide 4: Bosch: Hydrogen compatible fuel cell pilot installation
Bosch: Hydrogen compatible fuel cell pilot installation * The 10kW ‘power station’, based on two 5kW SteelCell® stacks ennstoff : site 8) a Electricity production at Wernau “Nnstoffzelle Fuel Cel| training centre delivered through three 1OkW SOFC devices * Operates on hydrogen, biogas or NG, 60% ele
Slide 5: Weichai: collaboration progressing despite Covid-19 challenges
Weichai: collaboration progressing despite Covid-19 challenges * 30kW range extender system for electric buses in field trials * JV to provide a staged path to high volume manufacturing for buses, commercial vehicles and other markets in China. Covid-19 delays pushing timing to H1 2021 * Weichai exe
Slide 6: ©
©
Slide 7: Financial highlights
_/ Financial highlights Revenue and other Gross margin Adjusted EBITDA Net cash used in operating income operating activities £19.9m 73% (£6.5m) (£5.4m) +21% 2019: 75% 2019: (£5.9m) 2019: (£3.1m) Order book! Pipeline? Cash and short-term New eauity raised investments £13.6m* £53.8m* £108.0m +£49m Se
Slide 8: Revenue growth continues at high margin
_/ Revenue growth continues at high margin Revenue growth Gross margin £m £m (%) 16 25 73% | 14 20 12 73%] 10 15 . & a 8 10 6 4 51% | LO LJ 2 , = Oo FY 2016/17 FY 2017/18 FY 2018/19 *2019/20 FY 2016/17 FY 2017/18 FY 2018/19 = *2019/20 mEngineering services sLicence mOther operating income *2019/20:
Slide 9: Investing for future growth
_/ \nvesting for future growth Cash Opex Adjusted EBITDA 25.00 - FY 2016/17 FY 2017/18 FY 2018/19 "2019/20 20.00 (2.00) 15.00 (4.00) € a = 10.00 “4 (6.00) (8.00) 5.00 (10.00) 7 FY 2016/17 FY 2017/18 FY 2018/19 *2019/20 (12.00) = Cash opex (Opex less depreciation & share based payments) = Adjusted EB
Slide 10: Cashflow and cash
_/ cashflow and cash Cash and short term investments FY 2016/17 FY 2017/18 FY 2018/19 *2019/20 =Cash and short term investments *2019/20 12 months ended 30 June 2020 © Ceres Power Ltd 2020 Net cash used in operating activities £m 2.00 FY 2016/17. FY 2017/18 FY 2018/19 *2019/20 (2.00) a (4.00) (6.00)
Slide 11: Strong cash position enables future growth
_S strong cash position enables future growth Reinvesting into the business Pf « £56m capex Operating cash flows (6.5) (5.9) (0.6) “poy Changes in working capital (1.4) 0.7 (2.1) * £2.5m development capitalised Tax received in the period 2.5 21 0.4 * Development capitalisation began Cash used in ope
Slide 12: ©
©
Slide 13: Global stimulus for Green recovery post Covid-19
_/ Global stimulus for Green recovery post Covid-19 | Aiming to be carbon neutral by 2060. E— Germany has - China’s 14th Five Year =—!} announced €9bn in stimulus for hydrogen Rlan[(2026 25 )seutc technologies, and links persist with long-term America’s Democratic Ed. u ambition of developing presid
Slide 14: Covid-19 and the green recovery
Covid-19 and the green recovery ENVIRONMENTAL Increased commitment to green initiatives by many governments as part of recovery. Ceres working with partners in most progressive countries; Japan, Germany, South Korea and China, to embed our clean energy technology. SOCIAL Huge adjustments to new ways
Slide 15: Investing now in clean energy technology to address climate change
Investing now in clean energy technology to address climate change Ceres heritage, Global demand for energy 1kW to 5-20kW. is, ae Potential for 150- = ® SOOKW. Future 7 utility scale, where 4) incentives exist. Industry: 29% HIGHER POWER Ceres’ potential . ao. * SOEC application Committed initial £5
Slide 16: Future scaling of the business
_/ Future scaling of the business Target additional global manufacturing Moving into higher power systems and partners to supply cells and stacks to broadening applications in each region system OEMs in regions of greatest (through system licensees) demand 0-5kw O 5-20kW e e | o— 20-200kW J J o= | 2
Slide 17: Partnership progression
_/ Partnership progression 1. Joint product 2. Licence: system/ 3. Royalties from development manufacturing products sold Engineering services Fees for tech transfer Royalties per kW WEICHAL (27 = WEICHAI @poscn MIURA (BOSCH S$ HONDA MiUuRA © Ceres Power Ltd 2020
Slide 18: Revenue evolution
_/ Revenue evolution PARTNERS’ INVESTMENT IN MASS PRODUCTION FACILITIES Advance licence fees from manufacturers & OEMs 20.00 15.00 10.00 5.00 | FY 2016/17 FY 2017/18 FY 2018/19 *2019/20 Supply for customer programmes Engineering services FY Revenue Near-term growth *2019/20 12 months ended 30 June 2
Slide 19: ©
©
Slide 20: Summary and outlook
_S summary and outlook Urgency for climate action continues to drive demand for clean and flexible sources of energy + Bosch: due to complete initial phase of collaboration and expect next steps end 2020 + Weichai: five buses being built to trial, due to complete H1 2021 + Miura: first commercial un
Slide 21: ©
©
Slide 22: Asset-light, licensing business model
_/ Asset-light, licensing business model C2 CERES LICENSES CORE TECHNOLOGY TO PARTNER CELL & STACK IP MANOERCTURING STACK SUPPLY TO OEMs LICENSE FEES LAsauis tas) SYSTEM ROYALTIES £/kW UNIT SOLD STACK ROYALTIES £/kW SOLD CERES LICENSES SYSTEM TECHNOLOGY TO PARTNER SYSTEM IP OEM CUSTOMER Sells sumer
Slide 23: Income statement
_/ income statement Revenue 18.9 15.3 Cost of sales (5.1) (3.8) ao Gross margin 13.8 11.5 2.3 Gross margin % 73.0% 75.1% Total R&D expenditure (16.8) (13.8) (3.0) Admin expenses (6.5) (4.6) (1.9) Comms (1.6) (2.1) 0.5 Operating costs (24.9) (20.5) (4.4) Cash operating costs (21.4) (18.6) (2.8) Other
Slide 24: Organisation
_/ organisation Uwe Glock Non-Executive Director Warren Finegold Chairman Ginggui Hao _A- Caroline Hargrove a ‘Aidan Hughes Non-Executive Director Non-Executive Director Non-Executive Director 7 LLM / Phil Caldwell Richard Preston Chief Executive Officer ~ Chief Financial Officer MMMM Steve Callagha
Slide 25: Share register (as at Aug. 2020)
_/ share register (as at 28 Aug. 2020) Investor % Shareholder base Weichai Power 20% Sy type Robert Bosch GmbH 18% Private and Others: 11% Hargreaves Lansdown PLC 3% inetitutiions Oceanwood Capital Mgt 3% . North America: The Capital Group Companies, Inc 3% Strategic: 38% Europe (non-Uk): 12% © Cere
Slide 26: Thank you
THANK YOU a INVESTOR RELATIONS TEAM: investors@cerespower.com #44 (0)1403 273463 _info@cerespower.com Ceres Power, Viking House,;Foundry Lane Hor: PX UK © Ceres Power Ltd 2020