Ceres Power Holdings Plc · LSE:CWR
Ceres Power — H1 2018 Earnings Presentation
18 slides from Ceres Power's earnings presentation, March 2018
Slide 1: Half-Year Results for the 6 months ended 31st December 2017
Our next generation SteelCell® HALF-YEAR RESULTS for the 6 months ended 31st December 2017 Phil Caldwell, Chief Executive Officer
Slide 2: Summary
Summary “A world leading developer of low cost, next generation Solid Oxide Fuel Cell (SteelCell®) technology” CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 1
Slide 3: Macro Drivers
Macro Drivers 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
Slide 4: Solution to global challenge: SteelCell offers an alternative to conventional combustion engines
Solution to global challenge: SteelCell® offers an alternative to conventional combustion engines and power generation Combustion Engines Electrification ▪ Batteries and fuel cells ▪ Poor air quality key technologies ▪ High pollutants SOx/NOx ▪ Zero emission/Low carbon ▪ Regulations to ban diesel ▪
Slide 5: Applications for the SteelCell
Applications for the SteelCell® CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 4
Slide 6: Commercial Highlights
COMMERCIAL HIGHLIGHTS Continued commercial progress: new partners and repeat business driving revenue growth • Revenue and other operating income for first half year doubled to £3.1 million; • Fifth partner signed with major European manufacturer achieving key company milestone, adding to partners i
Slide 7: 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 8: Development Partners
DEVELOPMENT PARTNERS ▪ Honda Power Systems – several applications ▪ SOFC Stack to Extend Range of Electric Vehicles ▪ Data Centre & Commercial Scale Opportunity CONFIDENTIAL PARTNER 1 ▪ Commercial Scale CHP Development with aim to market launch CONFIDENTIAL PARTNER 2 ▪ European-based Global OEM co-d
Slide 9: Commercial Highlights
COMMERCIAL HIGHLIGHTS Delivery of key customer contract milestones • Completed technology transfer with confidential customer to develop a multi-kW CHP product; • Achieved major technical milestone with first development of larger format SteelCell® for Cummins and US Dept. of Energy; • Secured follo
Slide 10: Technical Highlights
TECHNICAL HIGHLIGHTS Maintaining our technology leadership position • V5 SteelCell® development results show world-leading degradation rates; • New higher power 5kW stack platform development underway to address new high volume markets such as the data centre and automotive applications. CONFIDENTIA
Slide 11: 1kW SteelCell Stack
Increasing demand for increasing power. 1kW SteelCell® stack 1kW SteelCell™ Stack 5kW SteelCell® stack (under development) CONFIDENTIAL A Fuel Cell in every home and business Ceres Power Ltd. © 2017 10
Slide 12: Modular 10kW power systems under development
Modular 10kW power systems under development for Data Centres
Slide 13: Licensing strategy
Licensing strategy To license / technology transfer License / Joint Venture to manufacturing partner OEM* by application Core material Core SteelCell™ SteelCell™ stack *Original Equipment Manufacturer CONFIDENTIAL Presentation Title Ceres Power Ltd. © 2017 12
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Strong commercial progress has driven improved financial performance • Revenue1 and other operating income up 100% to £3.1m • Revenue from customers up from £1m to £2.6m • Operating loss flat at (£6.2m) • Due to increased investment in people, technology and operations to suppor
Slide 15: Financial highlights – income and margin
Financial highlights – income and margin £m H1 H1 Change Change 2018 2017 £m % Revenue and other operating income 3.1 1.6 1.5 99% - Revenue 2.6 1.0 1.6 156% - Other operating income 0.5 0.5 0.0 -13% Gross margin on revenue % 46% 60% n/a - More customers in joint development drive revenue increase -
Slide 16: Financial highlights – income statement
Financial highlights – income statement £m H1 H1 Change Change 2018 2017 £m % Gross margin 1.2 0.6 0.6 95% Operating costs (7.8) (7.4) (0.5) 6% - share-based payments 0.5 0.5 (0.0) -2% - depreciation 0.7 0.6 0.1 10% Operating loss (6.2) (6.2) 0.1 -1% Income tax credit 1.0 1.0 (0.1) -9% Loss for the
Slide 17: Financial highlights – cash flow
Financial highlights – cash flow £m H1 H1 Change Change 2018 2017 £m % Operating cash flows (5.1) (5.2) 0.1 -2% Changes in working capital (0.2) (0.9) 0.7 -78% Cash used in operations (5.3) (6.1) 0.8 -13% Capital expenditure (0.7) (0.3) (0.4) 118% Tax received in the period 1.9 2.2 (0.4) -16% Equity
Slide 18: Outlook
OUTLOOK • Maintain the strong performance in revenue growth for the full year • Field trials of the technology with OEM partner later in 2018; • Securing a new partner by the end of 2018 committed to future launch programmes • Release of the latest V5 SteelCell® technology and first 5 kW stacks to c