Ceres Power Holdings plc · LSE:CWR
Ceres Power — Shareholder Meeting (December 2014)
27 slides from Ceres Power's shareholder meeting presentation, Dec 3, 2014
Slide 1: Annual General Meeting Company Overview
Annual General Meeting Company Overview 3rd December 2014
Slide 2: Important notice
Important notice The information contained in this confidential document ("Presentation") has been prepared the right is reserved to terminate any discussions or negotiations with any prospective by Ceres Power Holdings plc (the "Company"). It has not been fully verified and is subject to investors.
Slide 3: Highlights 2014
Highlights 2014 During period: • Joint Development Agreement with Cummins Power Generation • Evaluation of Steel Cell under Technology Assessment Agreement with KD Navien, Korea’s largest boiler manufacturer • Underlying revenue increased from £0.0m to £0.5m, loss reduced from £11.4m to £7.4m After
Slide 4: Global Opportunity
gLoBaL SPPORTUNITY | 1 *
Slide 5: Global energy supply at tipping point
Global energy supply at tipping point Natural gas remains 25% of energy mix to 2040 USA UK Germany Korea & Japan Grid outages cost $80bn / year £150bn to replace 20% Move to renewables ⇒ Grid 97% energy imported of infrastructure by 2020 instability Consume 52% of world LNG 4
Slide 6: Fuel cells enable a change of power
Fuel cells enable a change of power Traditional Centralised Generation vs Distributed Power Generation Traditional Efficiency Efficiency Ceres Fuel Cell (35 - 40%) >45% (80-90 % CHP) 100% 100% (35 - 40%) Target >50% 5
Slide 7: Fuel cell market growth and annual installed capacity
Fuel cell market $1.8 bn 2013 predicted growth to $8.5 bn 2020 Annual installed capacity 250 200 megawatts 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 Europe Asia North America 6
Slide 8: OEMs drive rapid industry growth with government subsidies
OEM’s drive rapid industry growth- with government subsidies USA GERMANY SOUTH KOREA JAPAN (Business) (Residential & (Business/residential) (Residential) 10’s MW installations transport) 59 MW installed in 138,000 installed by 2013 2014 Subsidies: Subsidies: Subsidies: Subsidies: $5k/kW $1.2 bn $34k
Slide 9: Commercial Progress
COMMERCIAL PROGRESS 8
Slide 10: Potential license deal structure
Potential license deal structure PRODUCT Product IP License Ceres OEM Power Partners MANUFACTURING Manufacturing Partners 9
Slide 11: OEM progress validates technology and commercial value
OEM progress validates technology and commercial value DURATION 12 M 24 M 12 - 24 M ON-GOING DEVELOPMENT / COMMERCIAL Commercial Technology Development Product sales DEMO LAUNCH launch PRODUCT SALES Evaluation programme PROGRAMME PROGRAMMEprogramme LICENSE INCREASING VALIDATION AND COMMERCIAL VALUE
Slide 12: An expanding network of partners
An expanding network of partners • Korea’s No. 1 boiler company 1 kW • ~60% of North American market residential (instantaneous condensing gas water heaters) 1 to 5 kW Japanese • Multi- $bn consumer & industrial products residential Global OEM commercial • Driven by cycling robustness of Steel Cell
Slide 13: Technology Progress
TECHNOLOGY PROGRESS 12
Slide 14: The Steel Cell addresses the three key issues for SOFC
The Steel Cell addresses the three key issues for SOFC Cost Cell Cost System Cost Robustness Performance Start-stop Efficiency E-stop Capability Power Density Continuous Running Life Time 13
Slide 15: The Steel Cell uses inherently low cost materials
The Steel Cell uses inherently low cost materials Labour Ceramic Steel 14
Slide 16: Continued focus on scaling of manufacturing processes to ensure low cost
Continued focus on scaling of manufacturing processes to ensure low cost Today 2016 £0.7m funding from Technology Strategy Board to reduce material deposition time from 60 seconds to 3 seconds 15
Slide 17: Protecting the Ceres advantage through continuous improvement of the core technology
Protecting the Ceres advantage through continuous improvement of the core technology 20 Average Cell Power at 750mV(W) 18 16 14 Market Entry 12 Requirement 10 2009 2011 2013 R&D Today 2016 16
Slide 18: Efficiency comparable to the best in the Japanese market
Ceres Technology achieving efficiency comparable to the best in the Japanese Market at a unique cost position 55 50 %LHV Japan 2 45 Efficiency 40 Japan 1 35 30 2008 2009 2010 2012 2013 2014 2016 Year 17
Slide 19: Technology meets market requirements for robustness and life
Technology meets market requirements for robustness and life 10 years Thermal Cycling Cell Voltage [% of start] 100 90 80 Continuous Operation 70 at ~0.5%/kh 60 50 0 1000 2000 3000 4000 Generating Hours [hours] 18
Slide 20: £1m investment in test capability in Horsham
£1 m Investment in test capability in Horsham 19
Slide 21: Financial Results
FINANCIAL RESULTS For the year ending 30 June 2014 20
Slide 22: Financial highlights – Income statement
Financial highlights – Income statement Increased income with stable opex £m 2014 2013 Change Revenue from new customers 0.5 0.0 0.5 Release of deferred revenue 0.7 0.5 0.2 Revenue Revenue 1.2 0.5 0.7 Cost of sales (0.3) 0.0 (0.3) Other Income Recurring operating costs (10.1) (10.2) 0.1 Non-recu
Slide 23: Financial highlights – Cash flow
Financial highlights – Cash flow Cash increased by £20m – maintained constant cash burn £m 2014 2013 Change Operating cash flows (6.7) (10.2) 3.5 Changes in working capital (1.6) 0.2 (1.8) Cash burn flat Cash used in operations (8.3) (10.0) 1.7 £20m cash raised Capital expenditure (0.5) 0.0 (0.5) po
Slide 24: Major Shareholders
Major Shareholders Richard Griffiths 23.2% 22.3% 9.9% 8.2% 5.3% 23
Slide 25: Outlook
OUTLOOK 24
Slide 26: Outlook for 2015
Outlook for 2015 Healthy commercial pipeline and expect next stages of commercial partnerships Higher performance of technology through efficiency and power Further customer validation of the technology Early engagement with manufacturing partners 25 25
Slide 27: Ceres Power contact details
+44 (0)1403 273463 info@cerespower.com Ceres Power Viking House Foundry Lane Horsham RH13 5PX UK
Ceres Power Holdings — Shareholder Meeting (December 2014) on 6ix