Itm Power Plc · LSE:ITM
Itm Power — Investor Presentation (October 2021)
28 slides from Itm Power's investor presentation, October 2021
Slide 1: Project Bauen | £250m equity fundraising
Project Bauen | £250m equity fundraising October 2021 1
Slide 2: Disclaimer
ITM POWER | DISCLAIMER HYDROGEN ENERGY SYSTEMS THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED AT THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND ARE FOR DISCUSSION PURPOSES ONLY AND MUST NOT BE RELIED UPON FOR ANY PURPOSE. THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED AT
Slide 3: Disclaimer
ITM POWER | DISCLAIMER HYDROGEN ENERGY SYSTEMS This Presentation does not constitute an offer or the solicitation of an offer for the subscription or purchase of securities or any businesses or assets described in it, and should not be construed as such. Nor does this Presentation purport to give le
Slide 4: Presentation Team
ITM POWER | PRESENTATION TEAM HYDROGEN ENERGY SYSTEMS Dr Graham Cooley | CEO Andy Allen | CFO Dr Simon Bourne | CTO • Joined ITM Power in 2009 • Joined ITM Power in 2011 • Joined ITM Power in 2002 • Power Industry Background • Previously ITM Financial Controller • Defence Background • Board Member U
Slide 5: Presentation Contents
PRESENTATION CONTENTS HYDROGEN ENERGY SYSTEMS Presentation Contents: ▪ Strategy & Funding GC ▪ Technology & Manufacturing SB ▪ Financials AA ▪ Transaction Summary GC ITM Power Bessemer Park | 1GW pa Capacity Electrolyser Factory Project Bauen | Oct 2021 5
Slide 6: 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 Manufacturing Capacity: ▪ Current annual manufacturing capacity to reach 1GW by 2022 ▪ Priority
Slide 7: 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 ▪ Nationa
Slide 8: Backlog & Tender Pipeline
BACKLOG & TENDER PIPELINE HYDROGEN ENERGY SYSTEMS Backlog & Tender Pipeline (MW) Backlog (MW) Contracted + In Negotiation Record Backlog*: ▪ Total: 310MW ▪ Contracted: 43MW ▪ Negotiation: 169MW ▪ Preferred supplier: 98MW Record Tender Pipeline**: ▪ Total: 1,011MW (1GW+) vs 593MW in June ‘21 ▪ Increa
Slide 9: Products & Projects
PRODUCTS & PROJECTS HYDROGEN ENERGY SYSTEMS Containerised Plug & Play 2MW 5MW 800kg/day 2100kg/day Project Product Platform Integration 0-4 MW Plug & Play ITM 4-20 MW Plug & Play and 2MW Modular ITM or ILE 2MW & 5MW Modular 21-80 MW 2MW Modular ILE 81 MW+ 5MW Modular ILE Backlog: 310MW | Tender pipe
Slide 10: Tender Pipeline
TENDER PIPELINE HYDROGEN ENERGY SYSTEMS Record Tender Pipeline: ▪ Total: 1,011MW (excludes feasibility and FEED studies) ▪ Excludes wider pipeline development ▪ Increasingly weighted towards larger projects Project size distribution: Project Product Platform Integration Total MW No. Projects 0-4 MW
Slide 11: Tender Opportunity Pipeline Graphs
TENDER OPPORTUNITY PIPELINE GRAPHS HYDROGEN ENERGY SYSTEMS Tender Opportunity Pipeline : ▪ Industrial hydrogen driven by the transition to Net zero ▪ Renewables aligning with the O&G industry ▪ EMEA Leading ▪ APAC Fast follower ▪ AMER Earthshot not yet reflected Region (MW) Energy Industrial Mobilit
Slide 12: Bauen | 10 Year Manufacturing Projections
BAUEN | 10 YEAR MANUFACTURING PROJECTIONS HYDROGEN ENERGY SYSTEMS Substantial Shortfall in Production Currently Projected ▪ Current global manufacturing capacity significantly below projected levels of demand ▪ Substantial opportunity to take advantage of this market growth ▪ Secure position as lead
Slide 13: Bauen | Summary
BAUEN | SUMMARY HYDROGEN ENERGY SYSTEMS Project Bauen Current Position Development Deliverables Outcomes Strong technology Cost down value Best electrolyser Lowest total cost of platform engineering performance ownership Broad product Factory automation Local manufacturing Production capacity portfo
Slide 14: Technology & Manufacturing
BAUEN | TECHNOLOGY & MANUFACTURING HYDROGEN ENERGY SYSTEMS Technology & Manufacturing: ▪ Total Cost of Ownership ▪ Technology & Products ▪ Customer Offering ▪ ITM Support ▪ Cost Reduction ▪ Manufacturing Roadmap Dr Simon Bourne | CTO | Technology & Manufacturing 14
Slide 15: Bauen | Total Cost of Ownership
BAUEN | TOTAL COST OF OWNERSHIP HYDROGEN ENERGY SYSTEMS Delivering the Lowest LCoH2 Lowest H2 Production Costs Total Cost of Ownership | Winning Orders through Lowest LCoH2 • Performance • Testing ▪ Hydrogen production cost dominated by electrolyser performance • Technology roadmap ▪ Customers want
Slide 16: Bauen | Products
BAUEN | PRODUCTS HYDROGEN ENERGY SYSTEMS 0.2MW 2MW 5MW Metric Area Running System Desirability 80kg/day 800kg/day 2100kg/day Cost Price 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
Slide 17: 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 modu
Slide 18: Technology Acceleration
TECHNOLOGY ACCELERATION HYDROGEN ENERGY SYSTEMS Refhyne II | Expansion of the Wesseling Project ▪ Shell to produce synthetic kerosene in Rhineland Refinery ▪ Shell’s vision of an eRefinery ▪ "Shell Energy and Chemicals Parc Rhineland" Partnership for new 100MW: ▪ ITM Power, ITM Linde Electrolysis Gm
Slide 19: What is Aftersales & Support
WHAT IS AFTERSALES & SUPPORT GLOBAL BUSINESS SCOPE Onward Revenue Stream from Deployed Equipment: ▪ Targeting EBIT margins from product aftersales of c.25% ▪ Contracts typically over product lifetime ▪ Often higher than margin on new sales A Clear Competitive Advantage for Product Sales: ▪ SLA’s acr
Slide 20: Volume & Scale Driving Efficiencies
VOLUME & SCALE DRIVING EFFICIENCIES HYDROGEN ENERGY SYSTEMS Full System Price Reduction Targets €/MW Full System Price Reduction Targets ▪ Target 50% electrolyser cost reduction within 5 years ▪ Biggest gains available in PEM stack & power conversion ▪ Based on product standardisation & modularisati
Slide 21: Bauen | Manufacturing Acceleration
BAUEN | MANUFACTURING ACCELERATION HYDROGEN ENERGY SYSTEMS Current Status ▪ In production since January 2021 ▪ Historic manufacturing site closed, dilapidations complete ▪ Manufacturing standard products to stock to reduce lead times ▪ 24/7 after sales support centre established and resourced ▪ Capa
Slide 22: Bauen | Manufacturing Roadmap
BAUEN | MANUFACTURING ROADMAP HYDROGEN ENERGY SYSTEMS 1GW | Bessemer Park Gigafactory 2.5GW | UK Gigafactory 2.0 5GW | International Roll Out • Semi Automated Factory template • Fully Automated Factory proof of concept • Market leadership • Fast moving market • Acceleration to larger product deploym
Slide 23: Financials & Guidance
BAUEN | FINANCIALS & GUIDANCE HYDROGEN ENERGY SYSTEMS Financials & Guidance: ▪ Use of Funds ▪ Technology Roadmap ▪ Factory Investment Criteria and Model Shell 10MW electrolyser, Rhineland Refinery, Germany Andy Allen | CFO | Financials & Guidance 23
Slide 24: Delivering Next Stage of ITM Power Growth
BAUEN | DELIVERING NEXT STAGE OF ITM POWER GROWTH HYDROGEN ENERGY SYSTEMS Delivering the Lowest LCoH2 1 2 3 4 Working Company Use of Funds (£m) Technology Capex Lowest H2 Production Costs Capital Development • Performance Bessemer Park • Testing 1 UK Gigafactory 2.0 £50m £170m £40m £45m • Technology
Slide 25: Bauen | Technology Roadmap
BAUEN | TECHNOLOGY ROADMAP HYDROGEN ENERGY SYSTEMS 1 Technology Initiatives Use of Funds | £50m Technology Development: Accelerate technology development at scale Headcount: Investing in team development and growth Product Development: Accelerate product improvement & development Product Test: Reduc
Slide 26: 2.5GW Factory Finance Model
BAUEN | 2.5GW FACTORY FINANCE MODEL HYDROGEN ENERGY SYSTEMS Annual Capacity vs Factory Utilisation 1 2 3 4 5 6 90% 2 3 2.5GW Factory Finance Model | Example 80% Per-factory Economics: Country Considerations: 5 70% ▪ Capex spend £50m-65m ▪ Developed in collaboration with Linde 4 60% ▪ Working capital
Slide 27: Funding Our Next Stage of Growth
FUNDING OUR NEXT STAGE OF GROWTH HYDROGEN ENERGY SYSTEMS Shell 10MW electrolyser, Rhineland Refinery, Germany Ensuring ITM Remains a Market Leader in Green Electrolysis ▪ Step-change in government and corporate commitments to electrolyser projects ▪ ITM well placed to take advantage of this material
Slide 28: ITM Power | Project Bauen
ITM Power | Project Bauen October 2021 28