Slide 1: Capital Market Day
Capital Market Day 31 January 2024
Slide 2: Agenda
1. 12-month plan 2. Vision & values 3. Market update & strategic priorities 4. Financial results & full-year guidance 2
Slide 3: 12-month plan completed
12-month plan completed Welcome to the “new ITM” What we delivered in (just) 12 months: ✓ Portfolio rationalised; 12 legacy product variants discontinued What we promised: ✓ Leading PEM technology translated into repeatable volume products ✓ POSEIDON 20 MW core electrolysis module released ✓ Hybrid
Slide 4: Our product portfolio
Our product portfolio Leading PEM electrolyser 2 MW plug & play electrolyser Cutting-edge 20 MW module stack technology for small to mid-size projects for large-scale projects 4
Slide 5: Project impressions
Project impressions RWE, Lingen, 200 MW: ITM and Linde delivering world’s largest PEM electrolyser in physical build today Yara, Porsgrunn, 24 MW: ITM and Linde delivering the world’s first “green hydrogen for green ammonia” plant 5
Slide 6: Agenda
1. 12-month plan 2. Vision & values 3. Market update & strategic priorities 4. Financial results & full-year guidance 6
Slide 7: Vision & Values
Vision & Values With: We: To: ▪ Safety at the heart of ▪ Deliver the world’s best ▪ Help customers decarbonise everything we do electrolysers their operations ▪ Innovation in our DNA ▪ Scale our operations profitably ▪ Drive sustainable change to meet the rising demand within industry, government, ▪
Slide 8: Agenda
1. 12-month plan 2. Vision & values 3. Market update & strategic priorities 4. Financial results & full-year guidance 8
Slide 9: Long-term rationale for hydrogen
Long-term rationale for hydrogen 90% of global electricity expansion expected to be renewables1 ▪ Consensus that green hydrogen is the enabler of a successful energy transition for grid balancing and decarbonising especially 613 Mt per annum of clean hydrogen hard-to-abate industries (30% of global
Slide 10: Spotlight – UK market accelerating
Spotlight – UK market accelerating ▪ Hydrogen Allocation Round (HAR) mechanism to kickstart green hydrogen economy in the UK (7 rounds planned) ▪ Ambition of 1 GW electrolyser capacity in operation or construction by 2025, and 5 GW by 2030 ▪ HAR1 contracts selected end of 2023, providing £90m of CAP
Slide 11: Short-term developments
Short-term developments ▪ Electrolyser market still immature, with lots of ‘noise’ but only few technologies commercially credible. Market consolidation has started. ▪ Competitors increasingly facing issues, while ITM stronger than ever. Therefore, there is a ▪ Customers need assurance of product, t
Slide 12: Strategic priorities
Strategic priorities, acknowledging the need for readiness and flexibility, whilst managing cash carefully 1 2 3 Remain at the forefront of Scale operations whilst Grow global footprint technology, product and retaining flexibility and reach, while delivery credibility and conserving cash staying ad
Slide 13: PEM market in the last 12 months
PEM market in the last 12 months Europe market share Real projects Global noise 13 Company view for CY’23 based on publicly available information
Slide 14: Global reach – product compliance
Global reach – product compliance Before our 12-month plan 14
Slide 15: Global reach – product compliance
Global reach – product compliance Today, after our 12-month plan ▪ The intentional design of our TRIDENT stack platform enables compliance flexibility. ▪ ITM can deliver the same stack into all highlighted world regions. ▪ This unlocks volume manufacturing advantages, including a consistent supply c
Slide 16: Global reach – product compliance
Global reach – product compliance What’s next? ▪ With vast renewable energy potential, Australia is emerging as a market for domestic green hydrogen generation and export to various world regions. ▪ ITM’s stack is expected to achieve compliance without design changes also for Australia. 16
Slide 17: Future portfolio evolution – under development
Future portfolio evolution – under development STACK & SKID PLUG & PLAY EPC MODULE Portfolio addition: Evolution: Evolution: Evolution: Game-changing next gen Incremental technology Continuous improvement Incremental technology higher capacity stack and design improvements of module with every and d
Slide 18: Agenda
1. 12-month plan 2. Vision & values 3. Market update & strategic priorities 4. Financial results & full-year guidance 18
Slide 19: Financial results H1
Financial results H1 Revenue H1 24 £m H1 23 £m ▪ Driven predominantly by products; cube deliveries to Revenue 8.9 2.0 Germany and a number of Neptune plug & play units. Gross loss (8.2) (45.6) ▪ Further income recognised from consulting contracts. Adjusted EBITDA loss* (21.0) (54.1) Loss Cash 253.7
Slide 20: Financial results H1 – cash flow
Financial results H1 – cash flow Cash flow £m Opening balance 282.6 Adjusted EBITDA (21.0) Increase in inventories (18.0) Including WIP1, reflecting progress on projects not yet recognised as revenue Working capital improvements (receivables and payables) 11.9 Includes £2.0m net release of provision
Slide 21: FY'24 guidance
FY’24 guidance Previous guidance Revised guidance Revenue of £10-18m Revenue of £10-18m 2-3x increase compared to FY23 Unchanged EBITDA losses of £45-55m EBITDA losses of £45-50m Profitability improving with growing sales Range narrowed CAPEX £35-45m CAPEX £15-25m Spotlight on CAPEX Expansion, autom
Slide 22: Thank you for your attention
(°) ITM POWER Thank you for your attention ea