Ceres Power Holdings Plc · LSE:CWR
Ceres Power — FY2018 Earnings Presentation
22 slides from Ceres Power's earnings presentation, 2018
Slide 1: Power for a changing world
Power for a changing world CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 0
Slide 2: Final Results for the year ended 30th June 2018
FINAL RESULTS for the year ended 30th June 2018 CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 1
Slide 3: Highlights
Highlights Revenue and other operating income up 71% to £7.0 million Major increase in contracted Order Book from £3 million to £30 million Strong cash position post financial year end after new equity of £49.3m Bosch and Weichai Power strategic partnerships with significant equity investmen
Slide 4: Commercial Highlights
COMMERCIAL HIGHLIGHTS Revenue and Other Income Partners at JDA and beyond Order Book 7.0 6 29.8 4 4.1 £m £m 2 1.7 0.9 3.2 0.6 1.7 0 14/15 15/16 16/17 17/18 14/15 15/16 16/17 17/18 14/15 15/16 16/17 17/18 Weichai £20m equity & Framework Agreement Bosch £9m equity & £20m Collaboration and Licence Agre
Slide 5: Development Partners
DEVELOPMENT PARTNERS Manufacturing scale up/ 10 kW power systems for Data centre and commercial Manufacturing JV 2020 Electric Bus and stationary power market Electric Vehicle Range Extender CONFIDENTIAL COMMERCIAL Commercial Scale CHP SCALE PARTNER Data Centre & Commercial Scale Stati
Slide 6: Robert Bosch GmbH
Robert Bosch GmbH Strategic collabolration • Combines expertise in fuel cells, manufacturing in volume and product development Significant Commercial deal • Investing £9m in Ceres for 4 % stake + £20m revenues to 2020 • To further develop the technology and manufacturing Market Access Multiple appli
Slide 7: Weichai Power
Weichai Power International track record Track record of high growth Hong Kong and Shenzhen stock exchanges with a market cap of ~US$10bn, • Kion Group AG (MDAX-listed in Germany), Ferretti in Italy Significant Commercial deal • Investing up to £48 m in Ceres for 20 % stake + Framework Agreement for
Slide 8: Technical Highlights
TECHNICAL HIGHLIGHTS Net Electrical Efficiency Technology improvements open up new markets 60% 50% 50% 47% V5 core technology being released to customers. Performance equivalent to best in SOFC industry with advantages of SteelCell® LHV Electrical Efficiency of 60 % achieved in customer system d
Slide 9: Applications for the SteelCell
Applications for the SteelCell® CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 8
Slide 10: 1kW Stack, 1kW home system and other applications
1kW Stack 5 kW Stack 1kW home 10kW Commercial/ Data 30kW for Battery system Centres Electric Buses CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 9
Slide 11: How we work with Partners
How we work with Partners Technology Transfer License Supply with manufacturing Joint Product development partners Engineering Fees License Fees Royalties /kW CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 10
Slide 12: Licensing strategy
Licensing strategy Manufacturing License System License for application / Joint Venture Core material Core SteelCell™ SteelCell™ stack CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 11
Slide 13: Manufacturing partnership: UK Reference plant
Manufacturing partnership Annual capacity equivalent in units: 2018 2019 2020 2021 R&D in UK UK Technical Centre develops next generation V5, V6 & V7 SteelCell® HOME WORK CLOUD ROAD 1kW 10kW datacentres 30kW UK Reference plant Phase 1 2 MW 2,000 200 - 60* Phase 2 10 MW 10,000 1,000 0.25 300 100
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS Start of scale up phase New manufacturing facility signed in Oct ‘18 In Redhill, near HQ in Horsham To provide capacity to meet development partners needs Act as reference plant to enable licensing of manufacturing to partners for high volume 2MW/year from end of 2019,
Slide 15: New Manufacturing Facility
New Manufacturing Facility CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 14
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Strong financial position - raised £49m new equity in 2018 £29m from strategic investors Weichai and Bosch £20m from institutional investors Potential £28m more from Weichai on exercise of warrant subject to signing JV agreement Continued top line growth Revenue and othe
Slide 17: Financial Highlights – income and order book
FINANCIAL HIGHLIGHTS – income and order book £m FY FY Change Change 2018 2017 £m % Revenue and other operating income 7.0 4.1 2.9 71% - Revenue 6.3 3.1 3.2 103% - Other operating income 0.7 1.0 -0.3 -30% Margin on revenue % 51% 57% Order book at date of accounts 1 29.8 3.2 26.6 800% Order book inc
Slide 18: Financial Highlights – income statement
FINANCIAL HIGHLIGHTS – income statement £m FY FY Change Change 2018 2017 £m % Gross margin 3.2 1.8 1.4 78% Operating costs - ‘cash’ costs -13.8 -12.1 -1.7 -14% - share-based payments charge -0.9 -1 0.1 10% - depreciation -1.2 -1.3 0.1 8% Operating loss -11.9 -11.5 -0.4 -3% Income tax credit 2.0 2.0
Slide 19: Financial Highlights – cash flow
FINANCIAL HIGHLIGHTS – cash flow £m FY FY Change Change 2018 2017 £m % Operating cash flows -9.9 -9.2 -0.7 -8% Changes in working capital -1.5 -1.6 0.1 6% Cash used in operations -11.4 -10.8 -0.6 -6% Capital expenditure -1.5 -0.9 -0.6 -67% Tax received in the period 1.9 2.2 -0.3 -14% Equity-free cas
Slide 20: Strong Financial Backing
STRONG FINANCIAL BACKING 24% OCEANWOOD CAPITAL MANAGEMENT 7% 10% 4% 9% 7% CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 19
Slide 21: Outlook 2018/19
OUTLOOK 2018/19 • Strong revenue growth to continue – order book currently stands at ~£30m • Progress new and existing commercial partnerships development to licensing deals • Proving out applications in field trials & evaluations this year • Building UK plant for near term capacity and reference fo
Slide 22: Power for a changing world
Power for a changing world CONFIDENTIAL Power for a Changing World Ceres Power Ltd. © 2018 21