Slide 1: ITM Power | Trading Update
ITM Power | Trading Update 10th June 2021 Graham Cooley, CEO Andy Allen, CFO 1
Slide 2: ITM Power Positioning
ITM POWER POSITIONING HYDROGEN ENERGY SYSTEMS ITM Power Positioning: ▪ ITM Power manufactures world leading, field-proven PEM electrolysers ▪ ITM Power has the largest PEM electrolyser factory in the world Only one net-zero fuel | green hydrogen ▪ PEM Electrolysis powered by renewables is the only v
Slide 3: The Macro Market
THE MACRO MARKET HYDROGEN ENERGY SYSTEMS 7th June 2021 The Macro Market: ▪ IEA: 322m Tonnes of electrolytic hydrogen needed by 2050 ▪ IEA: global electrolyser capacity of 3,585GW needed by 2050 ▪ Aurora: Current pipeline of electrolysers is over 200GW ▪ Aurora: 85% of the 200GW is in Europe ▪ Nation
Slide 4: Key Achievements
KEY ACHIEVEMENTS HYDROGEN ENERGY SYSTEMS Key Achievements: ▪ Backlog: 290MW | Tender pipeline: 593MW ▪ Opened world’s largest electrolyser factory ▪ Sale of a 24MW (world’s largest) PEM electrolyser ▪ 100MW Refhyne II announced by Shell ▪ Rapid organizational development ▪ Responding to rapid market
Slide 5: Unaudited Results
UNAUDITED RESULTS HYDROGEN ENERGY SYSTEMS Financial results: 4/2021 4/2020 % Change ▪ Work in Progress** of £35.4m (£21.8m) up 62% YoY constituting 43MW of electrolysers Work in Progress* £35.4m £21.8m +62% ▪ Contracts backlog* of £154.0m (£52.0m) up 194% YoY Contracts backlog** £154.0m £52.0m +194%
Slide 6: Development of Project Scale
DEVELOPMENT OF PROJECT SCALE HYDROGEN ENERGY SYSTEMS National Strategies Delivering to emerging GW demand ▪ Project scale is growing rapidly ▪ Project scale increases 10x every two years ▪ Imperative to secure first mover advantage ▪ Fully automating core elements of product ▪ Planning production ca
Slide 7: Products | Customers
PRODUCTS | CUSTOMERS HYDROGEN ENERGY SYSTEMS 0.2MW 2MW 5MW Metric Area OPEX CAPEX Desirability 80kg/day 800kg/day 2100kg/day Higher efficiency Core tech P P PP Value engineering Product development P P PP Higher pressure Product development P P PP Oxygen utilisation Product development P - P Global
Slide 8: Customer Offering | XL Market
CUSTOMER OFFERING | XL MARKET HYDROGEN ENERGY SYSTEMS 100MW design | Part of the Gigastack FEED study Superior offering for the XL market: ▪ Acceleration of 5MW stack module underway ▪ Market leading electrolyser performance ▪ Responding to the market demand for large scale ▪ Standardisation and mod
Slide 9: Volume & Scale Driving Efficiencies
VOLUME & SCALE DRIVING EFFICIENCIES HYDROGEN ENERGY SYSTEMS Turn Key, Full System Electrolyser Cost Reduction ▪ Target 50% electrolyser cost reduction within 5 years ▪ Historic cost reduction has been rapid and consistent since 2018 ▪ Based on technology, product standardisation & modularisation ▪ L
Slide 10: Strategic Partnerships
STRATEGIC PARTNERSHIPS HYDROGEN ENERGY SYSTEMS Strategic Partnerships Crucial to Success: ▪ Building partnerships, rather than just supplier-customer relationships ▪ Long-term strategic partnerships are key to its future success ▪ Counterparties with the greatest potential to deploy electrolyser cap
Slide 11: Manufacturing
MANUFACTURING HYDROGEN ENERGY SYSTEMS Current Status: ▪ In production since January 2021 ▪ Historic ITM sites closed, dilapidations complete ▪ Manufacturing standard products to stock to reduce lead times ▪ 24/7 after sales support centre established and resourced ▪ Capacity scalable to 1GW within 6
Slide 12: After-Sales Capabilities
AFTER-SALES CAPABILITIES ADDING LONG-TERM VALUE TO BUSINESS MODEL ▪ Service contracts providing steady, long-term revenues ▪ 24/7 after-sales support offering ▪ ITM Control Centre in Bessemer Park ▪ Ongoing monitoring of all products ▪ Repair and maintenance capabilities Case Study | Optimal | Janua
Slide 13: Group Structure
GROUP STRUCTURE HYDROGEN ENERGY SYSTEMS CEO Organisation & Corporate Development Company Investor ▪ Operations Director | Commercial Director Secretary Relations ▪ Strengthening the management team | Skill & experience Finance Services Operations Technology Commercial ▪ Recently recruited 80 enginee
Slide 14: Unaudited Results
UNAUDITED RESULTS HYDROGEN ENERGY SYSTEMS ▪ Financial Results ▪ Pipelines ▪ Outlook Unaudited Financial Results | Andy Allen | CFO
Slide 15: Unaudited Results
UNAUDITED RESULTS HYDROGEN ENERGY SYSTEMS Financial results: ▪ Revenue of £4.0m (2020: £5.4m) ▪ Adjusted EBITDA loss broadly in line with expectations ▪ Cash of £176m at year end Factors impacting on revenue recognition: ▪ Covid-19 related project delays, particularly in Australia ▪ Without Covid-19
Slide 16: Unaudited Results
UNAUDITED RESULTS HYDROGEN ENERGY SYSTEMS Financial results: 4/2021 4/2020 % Change ▪ Work in Progress** of £35.4m (£21.8m) up 62% YoY constituting 43MW of electrolysers Work in Progress* £35.4m £21.8m +62% ▪ Contracts backlog* of £154.0m (£52.0m) up 194% YoY Contracts backlog** £154.0m £52.0m +194%
Slide 17: Backlog
BACKLOG HYDROGEN ENERGY SYSTEMS Record Backlog: ▪ Total: 290MW ▪ Contracted: 43MW ▪ Negotiation: 147MW ▪ Preferred supplier: 100MW Record Tender Pipeline: ▪ Total: 593MW Backlog: 290MW | Tender pipeline: 593MW | Current annual capacity: 1,000MW
Slide 18: Tender Pipeline
TENDER PIPELINE HYDROGEN ENERGY SYSTEMS Record Backlog: ▪ Total: 290MW ▪ Contracted: 43MW ▪ Negotiation: 147MW ▪ Preferred supplier: 100MW Record Tender Pipeline: ▪ Total: 593MW Backlog: 290MW | Tender pipeline: 593MW | Current annual capacity: 1,000MW
Slide 19: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK HYDROGEN ENERGY SYSTEMS Current Trading and Outlook ▪ The Company currently expects to produce 50MW of electrolysers in the financial year ending 30 April 2022 ▪ Of this, 33MW are already contracted in the backlog ▪ Recognised revenue will be strongly weighted to the seco
Slide 20: Summary
SUMMARY HYDROGEN ENERGY SYSTEMS 100MW design | Part of the Gigastack FEED study Why ITM Power: ▪ Rapid market growth in the GW scale ▪ Project size increasing ten-fold every two years ▪ Global technology leadership and manufacturing scale ▪ Partners: Shell, Linde, Snam, Ørsted and SPR (Iberdrola) ▪
Slide 21: ITM Power | Trading Update
ITM Power | Trading Update 10th June 2021 Graham Cooley, CEO Andy Allen, CFO 21