Ceres Power Holdings Plc · LSE:CWR
Ceres Power — FY2022 Earnings Presentation
23 slides from Ceres Power's earnings presentation, Mar 24, 2023
Slide 1: Final results
Slide 2: Leading solid oxide technology for power and green hydrogen
Leading solid oxide technology a for power and green hydrogen = Unique IP, >100 patent families , High-margin, licensing business : Se es model Sm ‘ We collaborate with world- Lisi ‘ : leading companies to deliver Frame clean energy technology... ..at scale and pace 2 Ceres Power Holdings plc | Fina
Slide 3: Another year of progress
Another year of progress With strategic investment to deliver on our strategy * Doosan factory construction underway in Korea * Bosch’s €500m investment plan in place * Weichai’s SOFC power system using Ceres' technology has achieved EU CE certification with TUV SUD ¢ First IOOkW solid oxide electro
Slide 4: Platform technology to address decarbonisation
Platform technology to address decarbonisation Ceres technology enables high efficiency energy conversion at low cost —_ _ wee Wy) @ BOSCH 4 Ceres Power Holdings plc | Final results cares
Slide 5: Asset-light, licensing business model for SOFC and SOEC
Asset-light, licensing business model for SOFC and SOEC Stack supply to OEMs Cell and stack IP System IP OEM Ceres licenses core Ceres licenses system partner technology to partner -_ technology to partner A F. : License and engineering License fees service fees Stack royalties £/kW sold System roya
Slide 6: Financial update
Financial update Eric Lakin
Slide 7: Financial overview
Financial overview For the year ended 31 December 2022 7 Revenue £22.1m -28% vs 2021 Gross profit £13.1m 2021: £19.0m Gross margin 59% 2021: 62%! Adjusted EBITDA (£43.2m) 2021: (£16.7m) Cash and short-term investments £182.3m Dec 2021: £249.6m Order backlog? £67.8m Dec 2021: £78.7m Employees 570 Dec
Slide 8: Revenue and gross profit
Revenue and gross profit Sector leading gross margins maintained Revenue and gross profit £35m 70% * Top line growth strongly influenced by the timing of ; 60% ove _ 02% 59% licence fee revenue recognition £30m - --e 60% * As R&D expenditure credit becomes more significant, £25m 50% we have elected
Slide 9: Revenue mix evolution
Revenue mix evolution Driven by timing of contracts Revenue mix and gross margin % 100% 60% 50% 40% 30% 20% 10% Di 31Dec20(CY) 3 1(FY) — 31Dec 22 (FY) 9 Ceres Power Holdings ple | Final results 70% 60% 50% 40% 30% 20% 10% 0% Licence fee revenue - very high margin, often recognised up-front Supply -
Slide 10: Planned investment on track
Planned investment on track Capital raise supports investment in growth Investment in the future * Total “Investment in the future” increased to £60m £58.4m (2021 £34.9m) driven largely by growth in SOEC R&D, and investment in SOFC capability * Capital investment in 2023 to further enhance pilot man
Slide 11: Growing visibility of future royalty revenue
Growing visibility of future royalty revenue Inflection driven by mass market scale of partner manufacturing 2024: SOFC Mass market asset launch, China launch : cares hydrogen © BOSCH © BOSCH Fooosan] @ royaities @ Licence fees, engineering services and hardware sales SOFC partners Growing scaling u
Slide 12: Business strategy
Business strategy Phil Caldwell
Slide 13: Strategy for future growth
Strategy for future growth To enable our licence partners to succeed * Bosch and Doosan moving towards 2024 start of series production * Third planned manufacturing facility upon China JV completion * Building the ecosystem of global electrolyser partners with Shell and Linde Eng. + Increased commer
Slide 14: Ceres partners building manufacturing scale globally
ee @ REFERENCE SCALING TO PLANT 200MW (2024) @ WEICHAL IN PLANNING Ceres partners building manufacturing scale globally @ cuit @ Planned 14 oldings plc | Final ® In planning 9 ta SOMW (2024) SCALING TO 170MW
Slide 15: Doosan Fuel Cell solid oxide fuel cell plant in South Korea
Doosan Fuel Cell has committed KRW 143.7bn (~£100m) to build a solid oxide fuel cell plant in Saemangeum, South Korea. Initial capacity of SOMW scaling to 17OMW to service marine, power and utility scale applications. Ceres Power Holdings plc | Final results PHOTO: Doosan Fuel Cell
Slide 16: Weichai system achieves EU CE Certification
= Weichai system achieves EU CE Certification + 120kW SOFC power system has China joint ventures: achieved EU CE certification through —_——— international testing organisation, TUV The structure of the China joint ventures SUD has been agreed. We now await the final agreement between Bosch and * Sys
Slide 17: Bosch series production commences in 2024
= * Series production commences in 2024, by which time Bosch will have invested ~€500 million * Approved by the European Commission as one of the first Important Projects of Common European Interest (IPCEl) 17 Ceres Power Holdings plc | Final results Recent deployments Publicly funded project using
Slide 18: Bosch and Linde Engineering SOEC collaboration
* Assessment of Ceres’ solid oxide Three-way collaboration electrolysis (SOEC) technology for large — — scale industrial applications Bosch has significant expertise in product industrialisation and mass + Validate performance of a high- . manufacturing. efficiency pathway to low-cost green hydrogen
Slide 19: Megawatt-class SOEC system demonstrator
Megawatt-class SOEC system demonstrator Initial testing giving confidence that technology can deliver green hydrogen at <40kWh/kg, around 25% more efficiently than incumbent lower temperature technologies ceres 19 Ceres Power Holdings ple | Final results
Slide 20: Indicative 2030 project costs for 1MT of green hydrogen
Indicative 2030 project costs for IMT of green hydrogen First electrolyser cell module (“ECM”) on test delivering <40kWh/kg Upstream cost savings eclipse electrolyser capex Gi hydi ducti Greent drogen production IMT IMT Gacteeniier Electrolyser capacity 6.3GW 4.7GW = Renewables capacity 12GW 8.9GW $
Slide 21: SOEC technology evaluation programme
* SOEC technology evaluation programme progressing well for deployment later this year * First-of-a-kind IMW demonstrator in build (far right) to accommodate up to nine electrolyser cell modules (“ECMs”) * Pilot starts in 2023 and will run for three years - hydrogen will be used in industrial proces
Slide 22: Outlook and focus for the year ahead
Outlook and focus for the year ahead 22 Growth of investment will continue in SOFC and SOEC consistent with 2021 capital raise Supporting existing partners as they scale manufacturing in Germany and South Korea Building new commercial partnerships including in electrolysis for green hydrogen Continu
Slide 23: Questions
Questions Investor Relations investors@cerespower.com Ceres Power Holdings pic Viking House, Foundry Lane, Horsham RH13 5PX T: +44 (0)1403 273463 | E: info@cerespower.com Ceres