Itm Power Plc · LSE:ITM
Itm Power — Shareholder Meeting (October 2019)
19 slides from Itm Power's shareholder meeting presentation, October 2019
Slide 1: AGM Presentation October 2019
AGM Presentation October 2019 Dr Graham Cooley | CEO 1
Slide 2: Executive Summary
EXECUTIVE SUMMARY HYDROGEN ENERGY SYSTEMS Strategic & Operational Progress in 2019: ▪ Linde Investment and JV a transformational deal ▪ World leading Technology and Manufacturing ▪ Project portfolio with global partners ▪ Strong momentum in key strategic markets ▪ Tenders, backlog and income in stea
Slide 3: Green Hydrogen | Commercial Rationale
GREEN HYDROGEN | COMMERCIAL RATIONALE HYDROGEN ENERGY SYSTEMS Commercial Rationale: ▪ RE reducing in cost significantly ▪ RE needs energy storage ▪ Green Hydrogen now cost competitive ▪ Multi £bn global addressable markets ▪ Refinery electrolyser market is ~€90bn* * ▪ Market pull for green hydrogen
Slide 4: Markets
MARKETS HYDROGEN ENERGY SYSTEMS Strong growth of revenue generating assets: ▪ Currently 16 tonnes | £160k of hydrogen sales ▪ Up 700% YoY ▪ New fleet of 200 FCEVs are not included ▪ 3 tonne/day capacity (40 buses and 800 cars) Potential Hydrogen sales of £9.3m when the existing portfolio is fully ut
Slide 5: Market Offering | 2MW to 10MW
MARKET OFFERING | 2MW TO 10MW HYDROGEN ENERGY SYSTEMS Building Housed Products: 10MW refinery electrolyser Containerised Products: 3MW refuelling hub Skid Mounted Products: 8MW train refuelling station Building a profitable business through scale, volume and partnerships 5
Slide 6: Linde Strategic Partnership
LINDE STRATEGIC PARTNERSHIP HYDROGEN ENERGY SYSTEMS Who are Linde? ▪ World’s largest speciality gas company ▪ Revenue: $28bn | 80k employees (2018) ▪ Linde world leader in hydrogen Build Own & Operate Scope of JV ▪ Focussed on large scale industrial hydrogen (10MW+) ▪ JV generates sales to fill the
Slide 7: JV Purpose
JV PURPOSE HYDROGEN ENERGY SYSTEMS JV purpose: ▪ Business development for large scale projects ▪ Feasibility & FEED studies with input from ITM & Linde ▪ Development of turnkey solutions for industrial applications ▪ Bring market & competition knowledge to ITM for product management ▪ Exclusive proc
Slide 8: Scaling Operations
SCALING OPERATIONS HYDROGEN ENERGY SYSTEMS 10MW Potential JV project 10MW PEM electrolyser systems ▪ Flagship 10MW project with Shell ▪ Largest PEM electrolyser in the world at deployment ▪ Largest refinery in Germany ▪ Benefit of Shell engineering & permitting rigour ▪ Excellent reference plant & c
Slide 9: 100MW Capability
100MW CAPABILITY HYDROGEN ENERGY SYSTEMS Feasibility in Progress | FEED study needed ▪ FEED studies bid by the Linde JV ▪ Linde to lead projects as EPC ▪ Sales channel from Linde and ITM Power ▪ Strong existing customer base ▪ World leading positioning ▪ Low cost energy storage and green hydrogen 10
Slide 10: 5MW Module Development
5MW MODULE DEVELOPMENT HYDROGEN ENERGY SYSTEMS 5MW Module Development 5MW Module Development: ▪ Provisional spec is 2.1 tonne of H2 per day ▪ Developed in parallel with manufacturing processes ▪ From 15 stacks to 4 stacks for 10MW module ▪ Design integration techniques reduce BoP costs ▪ Developed f
Slide 11: Volume & Scale Driving Efficiencies
VOLUME & SCALE DRIVING EFFICIENCIES HYDROGEN ENERGY SYSTEMS ITM Electrolyser Cost Projections ▪ Based on standardised modular system Enablers for cost reduction: ▪ Manufacturing volume ▪ Factory semi-automation ▪ System sizes to grow over time ▪ Continuous technology improvements <€1,000/kW today @
Slide 12: 1GW PA Manufacturing Facility
1GW PA MANUFACTURING FACILITY HYDROGEN ENERGY SYSTEMS Bessemer Park: ▪ Low cost, high volume UK manufacturing ▪ Production capacity increase of ten times ▪ 134,000 sqft under agreement ▪ Product assembly plant | Stack manufacturing ▪ 5MW Product Testing | Marketing area ▪ Occupation of offices | Spr
Slide 13: Equity Investment | Summary
EQUITY INVESTMENT | SUMMARY HYDROGEN ENERGY SYSTEMS £58.8m fundraising to address the remaining three main barriers to growth ▪ Working capital ▪ Manufacturing Working Capital: New Premises Identified: De-risked Balance Sheet to provide: ▪ Balance sheet strength • Required for large orders • Increas
Slide 14: Communications
Communications: ▪ New website ▪ Monthly Newsletter ▪ Research Notes ▪ RNS/RNSR announcements Communicating with Stakeholders 14
Slide 15: ITM Power | New Website Coming Soon
ITM POWER | NEW WEBSITE COMING SOON HYDROGEN ENERGY SYSTEMS New Website | News and Social Media: ▪ Flexible new platform coming soon ▪ More compatible with social media ▪ Information on a wide range of applications 15
Slide 16: ITM Power | Monthly Newsletter
ITM POWER | MONTHLY NEWSLETTER HYDROGEN ENERGY SYSTEMS Newsletter | Communicating with Stakeholders: ▪ Mailing list of 27,000 contacts via SalesForce ▪ Shareholders, media, press and industry ▪ Global reach ▪ Content includes ITM and Industry news ▪ Featured video “Tea break clip” ▪ Events to be att
Slide 17: ITM Power Research Notes
ITM POWER RESEARCH NOTES HYDROGEN ENERGY SYSTEMS Research Notes | Providing Numbers to Investors: ▪ Investec House broker ▪ Panmure Gordon Independent ▪ First Berlin Paid for Company Analyst Date Rating Target Investec Marc Elliott Oct 31st 2019 Buy xxx Panmure Gordon Lacie Midgley Oct 31st 2019 xxx
Slide 18: ITM Power plc (ITM.L) | RNS Announcements
ITM Power plc. (ITM.L) | 24 RNS Announcements 31st October 2019 07:00:00 RNS 2019 AGM Board Changes Corporate 29th October 2019 11:55:00 RNS Grant of Options Corporate 25th October 2019 07:00:00 RNS-R Opening of Gatwick HRS Commercial 22nd October 2019 11:52:00 RNS £58.8m Fundraise and Linde JV Appr
Slide 19: AGM Presentation October 2019
AGM Presentation October 2019 Dr Graham Cooley | CEO 19