Ceres Power Holdings Plc · LSE:CWR
Ceres Power — FY2017 Earnings Presentation
36 slides from Ceres Power's earnings presentation, 2017
Slide 1: Our next generation SteelCell
Our next generation SteelCell™ A Fuel Cell in every home & business Phil Caldwell, Chief Executive Officer Richard Preston, Chief Financial Officer
Slide 2: Final Results for the year ended 30th June 2017
FINAL RESULTS for the year ended 30th June 2017 Phil Caldwell, Chief Executive Officer Richard Preston, Chief Financial Officer CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 1
Slide 3: Commercial Highlights
COMMERCIAL HIGHLIGHTS Most successful year to date ▪ First “go-to-market” agreement signed with global OEM to develop product ▪ First significant US commercial success with Cummins & US Department of Energy ▪ Agreement with existing global OEM to develop a residential CHP system ▪ On track to sign f
Slide 4: Partners
PARTNERS ▪ Honda R&D – several applications ▪ SOFC Stack to Extend Range of Electric Vehicles FIELD TRIALS ▪ Home unit Field Trials in UK ▪ Data Centre & Commercial Scale Opportunity ▪ Commercial Scale CHP Development CONFIDENTIAL PARTNER with aim to market launch CONFIDENTIAL A Fuel Cell in every h
Slide 5: Technical and Operational Highlights
TECHNICAL AND OPERATIONAL HIGHLIGHTS Further technical progress highlights proven performance of SteelCell™ and Ceres Power’s manufacturing expertise ▪ Successful field trial results in UK proved SteelCell™ is reliable, highly efficient, low carbon & emission-free and could save home-owners ~£400 p.
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Strong commercial progress has driven improved financial performance ▪ Revenue1 and other operating income up 140% to £4.1m ▪ EBITDA2 loss down by 11% to £10.3m ▪ And investing in people, technology and operations to support growth into higher power applications ▪ Equity free ca
Slide 7: Financial highlights – income and order book
Financial highlights – income and order book £m FY FY Change Change 2017 2016 £m % Revenue and other operating income 4.1 1.7 2.4 141% - Revenue 3.1 1.1 2.0 182% - Other operating income 1.0 0.6 0.4 67% Margin on revenue % 57% 70% n/a n/a Order book at date of accounts 3.2 1.7 1.5 88% - More custome
Slide 8: Financial highlights – income statement
Financial highlights – income statement £m FY FY Change Change 2017 2016 £m % Gross margin 1.8 0.8 1.0 125% Operating costs - ‘cash’ costs (12.1) (11.8) (0.3) (3%) - share-based payments charge (1.0) (1.0) - - - depreciation (1.3) (1.2) (0.1) (7%) Operating loss (11.5) (12.7) 1.2 9% Income tax credi
Slide 9: Financial highlights – cash flow
Financial highlights – cash flow £m FY FY Change Change 2017 2016 £m % Operating cash flows (9.2) (10.6) 1.4 13% Changes in working capital (1.6) (1.2) -0.4 -33% Cash used in operations (10.8) (11.8) 1.0 8% Capital expenditure (0.9) (1.3) 0.4 31% Tax received in the period 2.2 1.7 0.5 29% Equity-fre
Slide 10: Outlook
OUTLOOK The Company’s reputation in the industry continues to grow • The demand for low carbon, flexible, near zero emission technologies has never been stronger • Strong customer pipeline with demand for higher power products (>5kW) • 5 Global Partners signed by End of 2017 (4 in place) • 2 Partner
Slide 11: Unique British Fuel Cell Technology Company
▪ Unique British Fuel Cell Technology ▪ Development & Manufacturing Company ▪ Listed on AIM: Market Cap approx. £140m ▪ 50 patent families ▪ 132 employees CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 10
Slide 12: Strong Institutional Backing
Strong Institutional Backing OCEANWOOD CAPITAL MANAGEMENT CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 11
Slide 13: Macro Drivers
MACRO DRIVERS CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 12
Slide 14: Climate Change, Air Quality, Rise of Mega Cities
Air Quality Climate Change ▪ Rise of Mega Cities ▪ Challenge to decarbonise ▪ Pollution from combustion energy system engine vehicles ▪ Balance renewables growth ▪ Power generation using coal and centralized generation CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 13
Slide 15: Electrification and Combustion Engines
Combustion Engines Electrification ▪ Poor air quality ▪ Batteries and fuel cells key technologies ▪ High pollutants SOx/NOx ▪ Zero emission/Low carbon ▪ Regulations to ban diesel and petrol engines ▪ Reinforce grid for local charging infrastructure CONFIDENTIAL A Fuel Cell in every home and business
Slide 16: Centralised Power vs Distributed Power with Fuel Cells
Centralised Power ▪ Low efficiency 30-40% ▪ High emissions SOx/NOx ▪ High carbon ▪ Poor air quality ▪ Ageing, expensive infrastructure Distributed Power with Fuel Cells ▪ High Efficiency Power > 50% + heat 90% ▪ Generation in home or business ▪ Cheaper energy bills 30% ▪ Low carbon + Zero emission S
Slide 17: Why is the SteelCell unique?
Why is the SteelCell™ unique? ▪ Fuel Cells most efficient way to generate power from any fuel ▪ Fuel flexible Natural Gas/Syn. Gas from Coal/Bio fuels/Hydrogen ▪ Affordable and robust Solid Oxide Fuel Cell for mass adoption ▪ Made from conventional steel with small amounts of ceramic ▪ Uses conventi
Slide 18: So why is SteelCell the solution?
So why is SteelCell™ the solution? PEM cell SOFC cell SteelCell™ Cost Efficiency Robustness Fuel flexibility CONFIDENTIAL Presentation Title Ceres Power Ltd. © 2017 17
Slide 19: SteelCell efficiency
SteelCell™ efficiency SteelCell™ (Data Centre/commercial) Efficiency %LHV Japanese SOFC SteelCell™ (Home) Japanese PEM Efficiency of central power grid KEY: Under development CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 18
Slide 20: Integrated Stack Development enables higher power applications
Integrated Stack Development enables higher power applications 5kW-class stack 1kW-class stack for Stationary Application CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 19
Slide 21: Applications for the SteelCell
Applications for the SteelCell™ CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 20
Slide 22: Home System Field Trial
Home System Field Trial Generates ~80% of home power + sufficient power to charge Electric Vehicle ~30% Lower Energy Costs ~30% Lower Carbon CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 21
Slide 23: CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017
CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 22
Slide 24: Commercial Scale Development
Commercial Scale Development ▪ 5 to 10 kW for offices, convenience stores etc. ▪ ~30% Lower Energy Costs ▪ ~30% Lower Carbon ▪ Zero SOx and Zero NOx CONFIDENTIAL PARTNER CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 23
Slide 25: CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017
CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 24
Slide 26: Fuel cell modules for Data Centre development with US DoE
Fuel cell modules for Data Centre development with US DoE ▪ Fuel Cells provide Primary Power ▪ “Off power grid” using natural gas ▪ Diesel Eliminated, lowering emissions ▪ Saves 20% of Cap Ex cost of data centre CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 25
Slide 27: CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017
CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 26
Slide 28: Range Extension & Potential Charging for EVs
Range Extension & Potential Charging for EVs ▪ On-Board Fuel Cells using bio fuels for long range and short refuelling ▪ Stationary Fuel Cells capable of reinforcing grid power supply ▪ UK EVs additional demand 8-16 GW* (from National Grid Future Energy Scenarios 2017) CONFIDENTIAL A Fuel Cell in ev
Slide 29: CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017
CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 28
Slide 30: How we work with Partners
How we work with Partners ▪ Joint Product Development ▪ License and Technology Transfer of System Design ▪ SteelCell™ stack supply through manufacturing partners ▪ Product development ▪ SteelCell™ Technology ▪ SteelCell™ Supply ▪ Engineering Services Transfer & Licensing ▪ Manufacturing/partners CON
Slide 31: Commercial Progress
Commercial Progress APPLICATION >50 GW REGION >10 GW DATA CENTRE >70 GW >300 GW RESIDENTIAL / BACK UP COMMERCIAL APU JAPAN INCREASING APPLICATIONS INCREASING TERRITORIES KOREA EUROPE USA & REST of the WORLD Customers CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 30
Slide 32: $1bn a year global opportunity
$1bn a year global opportunity Possible annual gross margin APPLICATION >50 GW >300 GW >10 GW DATA CENTRE >70 GW APU / RESIDENTIAL / BACK UP COMMERCIAL RANGE EXTENDER REGION TOTAL $130m $360m $210m $300m Up to 5% market share at up to $150 gross margin / kW Residential market: >18m boilers and water
Slide 33: Outlook
OUTLOOK The Company’s reputation in the industry continues to grow • The demand for low carbon, flexible, near zero emission technologies has never been stronger • Strong customer pipeline with demand for higher power products (>5kW) • 5 Global Partners signed by End of 2017 (4 in place) • 2 Partner
Slide 34: Solid Oxide Fuel Cells: The 'No Regrets' Solution for the Energy Transition
Solid Oxide Fuel Cells: The ‘No Regrets’ Solution for the Energy Transition CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 33
Slide 35: Appendix
Appendix CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 34
Slide 36: Convergence of Heat, Power & Transport
UK’s challenge of decarbonising Heat, Power & Transport CONVERGENCE OF HEAT, POWER & TRANSPORT CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 35