Ceres Power Holdings Plc · LSE:CWR
Ceres Power — H1 2022 Earnings Presentation
22 slides from Ceres Power's earnings presentation, Sep 22, 2022
Slide 1: Interim Results for the six months ended 30 June 2022
ce2res Interim Results For the six months ended 30 June 2022 22 September 2022 CLEAN ENERGY STARTS WITH CERES
Slide 2: Leading solid oxide technology for power and green hydrogen
ceres Leading solid oxide technology for power and green hydrogen Unique IP, >100 patent families High-margin, licensing business model We collaborate with world- leading companies to deliver clean energy technology... .at scale and pace 2 Ceres Power Holdings plc | Interim Results 2022
Slide 3: Investment in future growth
Investment in future growth * Partnering with Shell for IMW solid oxide electrolyser for green hydrogen Finalising contracts for China JV and third planned manufacturing facility for Ceres SOFC Scaling up globally * Revenue £9.9m with gross profit of £5.3m at industry-leading gross margin 55% * Cash
Slide 4: China joint venture agreements
China joint venture agreements VAAN r\\\\\ ARRRRRRNA a Securing Y Licence fees Final stages Expect to F . of preparing sign JV regulatory lestislellith revenue Future royalties collaboration agreements approvals (early 2023) recognition from production (now) (Q4) ' (up to 4 months) y (H1 2023) ceres
Slide 5: Ceres scales through global partnerships
Ceres scales through global partnerships Partners building manufacturing scale globally - 250MW capacity planned with third manufacturing facility intended for China REFERENCE PLANT @ Built @ Planned ®@ Inplanning 5 Ceres Power Holdings plc | Interim Results 2022 SCALING TO 200MW (2024) fooesan] Oe
Slide 6: Financial update
Financial update Eric Lakin
Slide 7: Financial highlights for six months ended June 2022
Financial highlights for six months ended 30 June 2022 Revenue and other Gross margin Cash and short-term Employees operating income investments £9.9m 55% £221.6m 523 -43% vs H1 2021 H1 2021: 72% Dec 2021: £249.6m Dec 2021: 489 Gross profit Adjusted EBITDA Order backlog* Planned partner capacity £5.
Slide 8: 80% • 70% • 60% • 50% • 40% 30% 20% 10% 0%
80% • 70% • 60% • 50% • 40% 30% 20% 10% 0%
Slide 9: Revenue mix evolution over time, driven by contract timings
Revenue mix evolution over time, driven by contract timings Revenue mix and gross margin % 100% 80% * Licence fee revenue - very high margin, often 90% recognised up-front -7 ~e 80% “7 ~ 70% 60% 50% 40% 30% 20% 10% 0% H2 2020 H1 2021 H2 2021 H1 2022 + Supply - represents prototype technology (cells
Slide 10: Strong balance sheet enables investment for the future
Strong balance sheet enables investment for the future Investment in the future £m 30m * Total “Investment in the future” increased to £25.7m (H12021 £16.5m) driven largely by 25m growth in SOEC R&D, as well as continued investment in SOFC capability £20m + Capital investment in 2022 to further enha
Slide 11: Growing visibility of future royalty revenue
Growing visibility of future royalty revenue f | re ;! launch, China ! "2024: SOFC || | Cer es | mass market || H tas | “Taunch || @)BOSCH | HYDROGEN Partners: i \ H scalingup | | @Bsosc | i Royalties ! towards mass | ; market launch } 1) Licence fees, I engineering services and hardware sales ce2re
Slide 12: Business strategy
Business strategy Phil Caldwell
Slide 13: Macroeconomic environment for decarbonisation
Macroeconomic environment for decarbonisation Net zero and energy security driving US and European policy with Asia undergoing a transition from coal to better use of natural gas $370bn of US Climate funding for clean energy: hydrogen production, renewable energy and storage. $9bn for regional hydro
Slide 14: Global energy transition to affordable clean power
Global energy transition to affordable clean power Ceres technology enables high efficiency energy conversion at Engaging with global majors in oil & gas, industrial gas and clean energy HYDROGEN 14 Ceres Power Holdings plc | Interim Results 2022
Slide 15: Global partners benefit from regulatory support
Global partners benefit from regulatory support (}) BOSCH Bosch plans the start of series production in 2024, by which time it will have invested about €500m in the development of decentralised power plants based on SOFC technology 15 Ceres Power Holdings plc | Interim Results 2022 In Germany, more
Slide 16: Doosan ambition for market growth
Doosan ambition for market growth 2020 2021 2022 2023 2024 2025 Doosan and Completed Consortium for Factory build Stationary Marine fuel cell Ceres licence development of marine (SOMW) products to be to be launched agreement 10kW system for applicability test launched buildings Doosan announces firs
Slide 17: Megawatt-class SOEC system demonstrator
Megawatt-class SOEC system demonstrator Specification Target Production 600kg/day System efficiency >80%, LHV, AC Target cost <$1.50/kg! 7 Ceres Power Holdings plc | Interim Results 2022
Slide 18: Shell collaboration for green hydrogen
Shell collaboration for green hydrogen *« Agreement to establish a IMW technology pilot of Ceres’ SOEC system at Shell’s R&D centre in Bangalore, India * Produce hydrogen at efficiencies around 20% greater than other technologies (80s to 90%) where it is possible to make use of waste heat in industr
Slide 19: Pivot to low-carbon hydrogen
Pivot to low-carbon hydrogen Grey hydrogen reached levelised cost of USD6.71/kg in EMEA Ceres target market entry point of less than $1.5/kg from 2025 Predicted production cost of hydrogen USD/kg Around 70 million metric tonnes of hydrogen are produced worldwide e today; primarily grey hydrogen prod
Slide 20: Platform technology to address decarbonisation
Platform technology to address decarbonisation FUEL IN ENERGY STORAGE POWER TO BUSINESSES POWER TO H, FOR E-CHEMICALS TRANSPORT POWER TO H, FOR E-FUELS HOMES Cc . = peat H, FOR INDUSTRIAL @ BOSCH HYDROGEN * FEEDSTOCKS WEICHAL miura RENEWABLE H, GAS BLENDING ENERGY IN 20 Ceres Power Holdings plc | In
Slide 21: Outlook and targets for the year ahead
Outlook and targets for the year ahead 21 Establish China JV for third global manufacturing facility Investment will continue in growth of SOFC and SOEC consistent with 2021 capital raise Supporting existing partners as they scale manufacturing in Germany and South Korea SOEC progression with commer
Slide 22: Questions
Questions Investor Relations investors@cerespower.com Ceres Power Holdings pic Viking House, Foundry Lane, Horsham RH13 5PX T: +44 (0)1403 273463 | E: info@cerespower.com