Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — Investor Presentation (April 2024)
19 slides from Invinity Energy Systems's investor presentation, April 2024
Slide 1: Investor Presentation April 2024
Investor Presentation April 2024
Slide 2: Executive Summary
Executive Summary Capital injection intended to unlock transformational next stage in Invinity’s business Fully funded Endorsement by Strengthened Licence and royalty Proposal to net cash new strategic balance sheet to model outside core generation investors support larger sales markets The culminat
Slide 3: Invinity Energy Systems
Invinity Energy Systems ▪ A global leader in vanadium flow batteries for the energy Global Footprint transition 75 MWh ▪ Longer-duration, safer, more durable alternative to lithium- ion batteries EDF Renewables ▪ Standardized, factory-built products 5 MWh Oxford, UK ▪ More than 1,200 flow batteries
Slide 4: The Global LDES Market Opportunity
The Global LDES Market Opportunity McKinsey estimates the Long Duration Energy Storage market to be over $1 trillion by 2040 ▪ LDES deployment growing exponentially ▪ Over $4 billion invested globally in LDES in 2023 (+120% YoY) accelerated by U.S. IRA and the EU REPowerEU ▪ California, $300 million
Slide 5: 15 Months of Corporate Achievements
15 Months of Corporate Achievements Commercial Financial Mistral Operational First Mistral Order Market Australian Utility ▪ 14.4 MWh to Everdura Pilot DOE Funding for ▪ 0.2 MWh project with Mistral Projects Horizon Power UK LDES Cap & ▪ 84 MWh of batteries ▪ Australian Vanadium Floor across 6 U.S.
Slide 6: Commercial Progress
Commercial Progress Growth in income and opportunity Total Income ▪ +500% YoY total income growth to £21.6m1 21.6 ▪ Over 6 GWh global demand (+176% YoY2 ) with 20 ~100 MWh of Mistral projects awarded ▪ Tier 1 energy storage manufacturer per BNEF 15 ▪ Partnership strategy delivering results in new ma
Slide 7: Mistral
Mistral The LDES flow battery
Slide 8: Mistral—Next Generation of Flow Batteries
Mistral—Next Generation of Flow Batteries Joint development project ▪ Joint development with Gamesa Electric, a wholly-owned subsidiary of SGRE/Siemens Energy ▪ Commenced May 2021 with Commercial release expected H2 2024 A product building on both parties’ proven expertise Designed to meet future en
Slide 9: Mistral: Evolution & Optimisation
Mistral: Evolution & Optimisation Mistral scales up proven VS3 technology to deliver improved performance, simplified installation, reduced maintenance and significantly lower costs. VS3 Mistral* Change Mistral Efficiency 67% 78% 17% ▪ 20 ft containerised modules ▪ Proven S4 cell stacks MWh Footprin
Slide 10: Changing the Economics of Energy
Changing the Economics of Energy The energy market will be fundamentally altered when renewable energy on demand costs less than the least expensive fossil-fuel generation. 250 ▪ Renewables provide lowest cost energy, but need energy storage to LCOE LCOS become baseload 200 Peaking ▪ Lithium batteri
Slide 11: Invinity's Pipeline by Region
Invinity’s Pipeline by Region UK Market Drivers ▪ 2030 National Renewable targets (50GW Wind, 70GW PV) ▪ Saturated short-duration battery market driving new business models UK ▪ Political and regulatory support for 505 MWh LDES and UK-manufactured solutions Europe North America 1,092 MWh Asia 1,930
Slide 12: April 2024: Sales Pipeline Increases
April 2024: Sales Pipeline Increases 17% increase in total 4500 +16% 4392 deal pipeline driven 4000 3791 by key factors: 3500 ▪ Lithium’s limitations becoming clearer 3000 MWh ▪ Policy support for domestic 2500 solutions in core markets +2% 1943 ▪ Regulation emerging to 2000 1899 enhance long-durati
Slide 13: Corporate Strategy
Corporate Strategy Capital deployment to achieve net cash generation
Slide 14: Commercial Strategy – Leveraging Partners
Commercial Strategy – Leveraging Partners Direct sales in core markets of Licence Mistral design outside core UK and North America markets for revenue-based royalty ▪ Retain full manufacture and sales operation in core ▪ Manufacture and sell Mistral batteries via licence and geographies – delivering
Slide 15: Core Market Strategies
Core Market Strategies North America ▪ Take advantage of strong government support, both grants and statutory incentives, for individual projects ▪ Statutory Incentives ▪ Support domestic U.S. content requirements for projects to qualify under IRA ▪ Grants ▪ Co-apply for government grants from DOE,
Slide 16: Existing Partners
Strategic Partners DESCRIPTION STRATEGIC INTEREST Provides infrastructure finance to tackle Support UK LDES projects utilising Invinity technology. NEW £25m climate change and UK economic growth. Has right to appoint director. Asia’s Leading Venture Capital and Equity Long-term follower of Company,
Slide 17: Financial Strategy
Financial Strategy Achieve net cash generation and net profitability in the next 2 years Target deposits and progress Drive cost of Mistral forecast to reduce LCOS Improve cash payments to fund supply-chain storage down from VS3 by 46% at launch. profile of a sale payables. Reduced manufacturing cos
Slide 18: Conclusion
Conclusion Transaction ▪ Raising £56m through an oversubscribed subscription and conditional placing ▪ Open offer available to existing shareholders Rationale ▪ Transaction will take the Company to net cash generation ▪ Facilitates the launch of the higher-margin Mistral battery in second half 2024
Slide 19: Disclaimer & Important Notice
Disclaimer & Important Notice The information contained in this confidential document (“Presentation”) has been prepared by, and is the sole responsibility of, Invinity Energy Systems Plc (the “Company”). This Presentation has not been approved by an authorised person in accordance with Section 21 o
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