Slide 1: 2017 FY Results Presentation
2017 FY Results Presentation Scott McGregor, Chief Executive Officer Fraser Welham, Chief Financial Officer 17th May 2018
Slide 2: 2017 FY highlights & Current YTD
2017 FY highlights & Current YTD 2017 • Significant demand for commercial Gen 2 machines • 43 unit orders signed during the year including: • 14 units for Botswana off-grid customer • 9 units via S.E. Asian partner • 12 units for hybrid system in Australia • Flagship demonstration sites operational:
Slide 3: Sustainable equity value
Sustainable equity value Sustain Scale Energy Storage Expert Functional Technology USP performing team Prove Gen 2 sales Deliver Market seeding programme Gen3 Product complete Orderbook across defined Credibility through products Gen 1 design Case-studies Gen 2 system Ambassadors delivered System Ma
Slide 4: Energy market trends
Energy market trends Cost of Solar Generation Power Price Volatility Grid Service Revenues Tending to $0/kWh Peak Prices Rising USA, UK + others coming online Distributed infrastructure energy storage is now open for business This is real, distributed infrastructure – not opportunistic investments b
Slide 5: Energy storage applications overview
Energy storage applications overview Market Size Grid Connected C&I – Renewables + Storage – ~15% IRR Certain geographies now economic; UK, Australia, Germany, USA $65-103bn Time-shifting for self consumption, contracted services and merchant revenues Off-Grid & Weak Grid – ~30% IRR , 3-5 year payba
Slide 6: redT market segment growth
redT market segment growth UK C&I Totals Off-Grid (31st Dec. 2017) IRR: ~30% IRR: ~10-20% Orders 3-5 Year Payback 7-10 Year Payback €2.5m 43 units Final stage €18.3m 330 units *Gen 3 €1.7m 40 units Australia C&I Distributor IRR: ~10-20% IRR: ~10-30% Pipeline 7-10 Year Payback 3-10 Year Payback €357m
Slide 7: redT channels to mass adoption
redT channels to mass adoption Direct Sales (C&I) Distributors Large Projects Specific (Developers) Programmes UK, Australia, Africa & Local renewable or EU energy experts Large-scale Specific campaigns infrastructure projects directed at Establishes initial Trusted and local to + tenders exploiting
Slide 8: Unlocking on-grid energy storage
Unlocking on-grid energy storage 80% 20% Base Returns Locked In Merchant Revenue Upside Use more solar Access more revenues Firming solar: 24/7 solar power Requires 4-8 hours of storage Perform all services, remain flexible New Solar Batteries: 2 hours Contracted Batteries: 1 service (Freq. response
Slide 9: Comparing energy storage business models
Comparing energy storage business models Energy Storage Infrastructure Battery Storage High % of business case locked-in Returns at risk Flexibility to change over time Non-flexible business case
Slide 10: Hybrid energy storage
Hybrid energy storage ee SOMW lil Charge/Discharge events Lithium Battery Flow Machine Pulse Discharge (Flow Machine) Power <1 hour energy 1-2 hours energy 2-3 hours energy 3-4 hours energy >4 hours energy Lt 10 requiried requiried requiried requiried requiried re | energy storage
Slide 11: Its not all about efficiency…
Its not all about efficiency… Degradation is the most important factor affecting profitability for energy storage, NOT efficiency…
Slide 12: redT corporate strategy
redT corporate strategy Experts in energy storage solutions – system “run-strategy” design, software solution, project finance, engineering & asset management Revenue-based infrastructure customer business models Outsourced manufacturing – Gigawatt scale, Tier 1 global manufacturing capability One o
Slide 13: redT revenue business model
redT revenue business model Product Capex Financing Value based pricing margin Electrolyte Rental Leasing 20+ Year Annuity Stream Operation Warranty Service & Maintenance Value Added Services Energy Trading Grid Services Revenues Management & Analytics
Slide 14: Achievements & outlook
Achievements & outlook Recent Achievements Proven UK commercial model - opened up lucrative UK market 1st Vanadium/Lithium hybrid system to be deployed in Australia Flagship demonstration site installed in cooperation with Centrica Key demonstration site commissioned in South Africa (+ multiplier sa
Slide 15: FY 2017 Financials
FY 2017 Financials redi
Slide 16: FY 2017 Financial highlights
FY 2017 Financial highlights • Year end free cash €7.4m (2016: €2.8m) • Revenue up 9% to €11.8m (2016 €10.8m) • Trading loss (1) €6.9m (2016: €5.3m loss) due to operational expansion • Operating loss €7.9m (2016: €5.7m loss) • Loans and borrowings €Nil (2016: €Nil) (1) Operating loss excluding share
Slide 17: Income statement
Income statement 2017 2016 Movement €m €m €m % Revenue 11.8 10.8 1.0 9 Cost of sales (8.2) (8.6) 0.4 4 Gross profit 3.6 2.2 1.4 59 Administrative expenses (excl. SBP) (10.5) (7.5) (3.0) (39) Trading loss (6.9) (5.3) (1.6) (31) Share-based payments (SBP) (1.0) (0.4) (0.6) (152) Loss from operating ac
Slide 18: Segmental analysis
Segmental analysis redT Camco Group 2017 2016 Movement 2017 2016 Movement 2017 2016 Movement €m €m €m % €m €m €m % €m €m €m % 0 Revenue 0.9 0.3 0.6 194 10.9 10.5 0.4 4 11.8 10.8 1.0 9 Cost of sales (0.4) (1.8) 1.4 79 (7.8) (6.7) (1.1) (17) (8.2) (8.5) 0.3 4 Gross profit 0.5 (1.5) 2.0 133 3.1 3.8 (0.
Slide 19: Cash flow
Cash flow 2017 2016 Movem't €m €m €m Loss for the year (8.2) (5.6) (2.6) Add back: SBP 1.0 0.4 0.6 depreciation 0.2 0.1 0.1 FX movements 0.3 0.1 0.2 taxation - (0.2) 0.2 Adjusted EBITDA (6.7) (5.2) (1.5) Movement in: receivables (2.0) 0.2 (2.2) inventory (0.6) - (0.6) payables (2.7) (1.3) (1.4) defe
Slide 20: Balance sheet
Balance sheet 2017 2016 Movem’t €m €m €m Property, plant and equipment 0.5 0.1 0.4 Intangible assets and goodwill 15.0 15.0 - Deferred tax assets 0.1 0.2 (0.1) Non-current assets 15.6 15.3 0.3 Inventory 0.6 - 0.6 Receivables 3.3 1.3 2.0 Payables (1.7) (4.0) 2.3 Deferred income (2.1) (0.7) (1.4) Work
Slide 21: Appendix
Appendix redi
Slide 22: Production & deployment overview
Production & deployment overview
Slide 23: Management & executive team
Management & executive team Management Team Board of Directors Scott McGregor* Dr. Jeff Kenna Chief Executive Officer Chairman of the Board of Directors Joined 2006. 30 years managing business in energy CEO since 2009, extensive experience within mining, sector, policy advisor to EC, World Bank, UN