Slide 1: Results Presentation August 2018
RESULTS PRESENTATION AUGUST 2018 | LONDON New Factory: Grounds Shell, 30,000 Rheinland Refinery, m2, Floor Space 11,610 m2 Germany
Slide 2: Contents
RESULTS PRESENTATION AUGUST 2018 | LONDON Presentation Contents: ▪ What we do ▪ Results Infographic ▪ Summary of Results ▪ Recognised Revenue ▪ A Company in Transition ▪Recognised Revenue Plant New Production ▪ Revenue Generating Assets ▪ Corporate Developments Sumitomo Corporate visit hosted by ITM
Slide 3: ITM Power | What We Do
ITM POWER | WHAT WE DO ITM Power manufactures integrated hydrogen energy systems Power-To-Gas Renewable Electricity Clean Fuel ITM Electrolyser Water Renewable Chemistry ITM POWER | WHAT WE DO 3 HYDROGEN ENERGY SYSTEMS
Slide 4: Results Infographic
RESULTS INFOGRAPHIC 4 HYDROGEN ENERGY SYSTEMS
Slide 5: Key Financial Results
KEY FINANCIAL RESULTS FINANCIAL: • Total Revenue & Grant Funding of £14.1m (2017: £9.2m) up 53%, comprising: • Product revenue - £3.3m (2017: £2.4m) up 36% • Grant income recognised on the income statement - £4.1m (2017: £4.2m) down 0.5% • Grant income recognised on the balance sheet - £6.7m (2017:
Slide 6: Recognised Revenue
RECOGNISED REVENUE Strong sustained growth: ▪ £14.1m up 53% YoY ▪ Ahead of expectations (broker note: £12.8m) ▪ Ratio of sales | grants moving towards sales in 2019 ▪ Asset ownership steadily increasing ▪ Losses include £0.9m of one off costs RECOGNISED REVENUE 62 HYDROGEN ENERGY SYSTEMS
Slide 7: A Company in Transition
A COMPANY IN TRANSITION Skills | Training | Expansion: ▪ Investing in production skills ▪ Investing in the BD and sales function ▪ Transitioning from an R&D organisation A COMPANY IN TRANSITION 72 HYDROGEN ENERGY SYSTEMS
Slide 8: Working Capital Bridge
WORKING CAPITAL BRIDGE NET CURRENT ASSETS 40,000 35,000 30,000 25,000 £m 20,000 15,000 10,000 5,000 0 Current Net Fund Cash on Stock Trade and Trade and Provisions Current Assets 2017 Raise guarantee other other Assets 2018 receivables payables KEY FINANCIAL RESULTS 82 HYDROGEN ENERGY SYSTEMS
Slide 9: Potential Hydrogen Sales
Fuel sales 10,000,000 POTENTIAL HYDROGEN SALES 9,000,000 Strong sustained growth of revenue generating assets: 8,000,000 ▪ Currently 16 tonnes | £160k of hydrogen sales ▪ Up 700% YoY 7,000,000 ▪ New fleet of 200 FCEVs are not included 6,000,000 ▪ FY19 and FY20 estimates assume 112 and 258 cars avera
Slide 10: Tender Opportunity Pipeline
TENDER OPPORTUNITY PIPELINE A developing assessment and qualification process: ▪ Must have been tendered in the last 12 months ▪ Must have a project ready to go with finance in place ▪ Must be expected to happen within three years ▪ Tender opportunity pipeline is increasing September 2017 (1) August
Slide 11: Transition
TRANSITION STANDARDISATION CAPACITY PRODUCT OFFERING CUSTOMER ENGAGEMENT MARKET DEVELOPMENTS
Slide 12: Pathway to Profitability: Standard 2MW Stack Module
PATHWAY TO PROFITABILITY Product Standardisation | Production Capacity | Clear Market Offering ▪ Definition of 2MW module & 10MW stack skid ▪ Enables efficiencies in manufacture & test ▪ Well defined cost & trajectory ▪ Modular system provides flexibility of offering ▪ New projects all specified usi
Slide 13: Pathway to Profitability: Standard 10MW Stack Skid
PATHWAY TO PROFITABILITY Product Standardisation | Production Capacity | Clear Market Offering ▪ Definition of 2MW module & 10MW stack skid ▪ Enables efficiencies in manufacture & test ▪ Well defined cost & trajectory ▪ Modular system provides flexibility of offering ▪ New projects all specified usi
Slide 14: Pathway to Profitability: Production Capacity
PATHWAY TO PROFITABILITY Product Standardisation | Production Capacity | Clear Market Offering ▪ Colocation into new production facility ▪ Manufacturing space increased by 5x ▪ Adoption of semi-automated stack component preparation ▪ Increase of power on-site to allow testing of larger systems ▪ Hea
Slide 15: Pathway to Profitability: Shell 10MW Project
PATHWAY TO PROFITABILITY Product Standardisation | Production Capacity | Clear Market Offering ▪ Flagship 10MW project with Shell ▪ Largest PEM electrolyser in the world | Largest refinery in Germany ▪ Benefit of Shell engineering & permitting rigor ▪ Excellent reference plant & customer ▪ Strong en
Slide 16: Pathway to Profitability: Project Development
PATHWAY TO PROFITABILITY Product Standardisation | Production Capacity | Clear Market Offering ▪ Large scale projects require significant development ▪ Project development strategy includes early engagement via feasibility planning ▪ Leveraging the 10MW project by showing ITM has a head start ▪ Five
Slide 17: Market Developments
Power-To-Gas Power-To-Gas Storage: • £30m UK Gov hydrogen cost reduction funding • UK Gov P2G feasibility study • Shell Wessling refinery Clean Fuel Hydrogen Fuel: • OLEV £14m funding TBA shortly • Toyota truck and bus • New Nexo Hyundai vehicle • GM FC platform • FCHJU JIVE I & II bus projects • FC
Slide 18: Summary
SUMMARY Company in transition ▪ Large scale projects require significant development ▪ Accelerating global momentum in the hydrogen industry ▪ The potential markets for hydrogen are diverse, global and huge ▪ ITM Power is well placed to exploit these growing markets ▪ Rapid transition into commercia
Slide 19: Results Presentation August 2018
RESULTS PRESENTATION AUGUST 2018 | LONDON New Factory: Grounds Shell, 30,000 Rheinland Refinery, m2, Floor Space 11,610 m2 Germany