Ceres Power Holdings Plc · LSE:CWR
Ceres Power — Ceres Power Hldgs — H1 2024 Earnings Presentation
24 slides from Ceres Power's earnings presentation, Sep 27, 2024
Slide 1: Interim results
Interim results For the six months ended 30 June 2024 Ceres Power Holdings plc 27 September 2024
Slide 2: Summary
Summary * Signed two new stack licences and a system licence this year to date * Record first half: revenue increased by 144% to £28.5m and gross profit increased by 217% to £22.9m * Record order intake of £46.9m in the half * Order intake has grown to £103.3m in the year to 31 August 2024 * Now hav
Slide 3: Commercial acceleration
Commercial acceleration * Delta Electronics manufacturing collaboration licence for both SOFC and SOEC stack production * Ceres signed second manufacturing collaboration licence with Denso Corporation for SOEC stack production * Ceres signed its first SOEC system licence partnership with Thermax Lim
Slide 4: Continued technological leadership
Continued technological leadership * Megawatt scale electrolyser being commissioned at Shell’s R&D centre in Bangalore, India and we have signed a follow- on contract to design a IOMW pressurised SOEC module * Optimal system architecture design for IOOMW+ electrolyser system suitable for gigawatt-sc
Slide 5: Financial update
Financial update Eric Lakin
Slide 6: Financial overview
Financial overview For the six months ended 30 June 2024 Revenue £28.5m up 144% vs H1 2023! Gross profit £22.9m H1 2023: £7.2m! 1. _H1 2023 results have been restated due to December 2023 annual results audit adjustments. There have been no new prior year adjustments outside those noted in the 2023
Slide 7: Record revenue and gross profit
Record revenue and gross profit Sector leading gross margin Revenue and gross profit maintained £30m £25m - ’ . . % 62% “7 * Strong growth in H1 2024 revenue and margins eee ee 59% - + oe £20m Tse strongly influenced by recognition of the new Delta ° licence technology transfer revenue in the period
Slide 8: Licence revenue increase driven by Delta partnership
Licence revenue increase driven by Delta partnership Revenue mix + Licence fee revenue - very high margin that can be £25m, recognised up-front or over time + Supply - represents prototype technology (cells and £20m stacks) to partners for development * Engineering services — joint development and i
Slide 9: Cost base evolution
Cost base evolution Cost base £35m £30m £25m £20m £15m £10m £5m £m H121 H221 H122 H2 22 H1 23 H223 H124 Significant investment in solid oxide electrolyser and fuel cell technology and development projects Investment costs now moderated as we achieve significant R&D and NPI milestones and pass peak i
Slide 10: Continued improvement in cash outflow
Continued improvement in cash outflow Free cash flow (plus cash and investments) £m 2021* 2022 2023 2024 . * On track for reduced cash outflows in ful- £126.1m as at 30 June 2024 im (€10m) tem) year 2024 compared to 2023 (£20m) * Increased order intake combined with optimised cost base maintains a s
Slide 11: Business strategy
Business strategy Phil Caldwell
Slide 12: Acceleration of SOEC built on leadership in SOFC
Acceleration of SOEC built on leadership in SOFC Commercial * Compelling business case across hydrogen, green steel and green ammonia acceleration * New licensees for both SOFC and SOEC applications Technology * Megawatt demonstrator being commissioned at Shell’s R&D centre in India leadership * Des
Slide 13: Delta takes dual licence for power and hydrogen
Delta takes dual licence for power and hydrogen B Ceres’ first licence partner for cell and stack manufacturing for both SOEC and SOFC technology Headquartered in Taiwan, Delta employs over 80,000 people across approximately 200 facilities worldwide with strong ambitions to diversify into turnkey de
Slide 14: Denso non-exclusive global licence agreement
14 Non-exclusive global licence agreement for cell and stack production that includes licence fees, engineering services and hardware over multiple years similar to previous OEM partnerships A Fortune 500 company employing over 160,000 people, Denso is a Japanese original equipment manufacturer buil
Slide 15: Thermax signs SOEC system licence
Thermax signs SOEC system licence 15 Non-exclusive global licence agreement to manufacture, sell and service Stack Array Modules (SAM), which includes licence fees and product royalties in the future Thermax already has a well-established market presence as one of India’s largest process equipment m
Slide 16: Manufacturing licence and a system licence
Manufacturing licence and a system licence Manufacturing licence System licence * Ceres provides cell and stack IP for manufacturing * Ceres provides the system IP for manufacturing * Cells are integrated into stacks * Systems integrated into industrial processes such as steel and ammonia plants * S
Slide 17: Modular SOFC technology scales for various power applications
Modular SOFC technology scales for various power applications DOOSAN 10-60kW scaling to G(OOkW | BOSCH scaling to 1OOkW [Ren | sy ceamn WEICHAI 30-75kW scaling to IMW ae ceres
Slide 18: Shell demonstrator being commissioned
Shell demonstrator being commissioned * Megawatt scale SOEC demonstrator is on site in Bangalore, India at Shell’s R&D centre and is going through final commissioning * Demonstrator scheduled to come online by the end of the year in partnership with * Signed a follow-on contract to design a IOMW. pr
Slide 19: Front-end engineering design for multi-megawatt hydrogen system
19 Front-end engineering design for a commercial multi- megawatt modularised hydrogen production system based on Ceres’ technology Designed optimum system architecture for a 1IOOMW+ electrolyser system, as a building block for gigawatt-scale green hydrogen plants Hydrogen production at essential in
Slide 20: Engagement across the hydrogen value chain
Engagement across the hydrogen value chain System integrator
Slide 21: Building out our market presence
2 Building out our market presence ¢ Strategic collaboration with global partners to achieve scaled deployment of Ceres’ SILA technology aa * Factories being built concurrently across key = # geographies * Accelerated market entry for our partners by leveraging the continuous innovation and developm
Slide 22: SOEC compelling advantage in 50% of this target market
SOEC compelling advantage in 50% of this target market Global electrolyser capacity estimated to be 3,796GW in 2050 Ceres technology advantage Ceres business model advantage Other industries, 51% Steel, 23% Rest of world, 23% Europe, 6% | Ammonia, 14% USA, 12% / | Sustainable aviation fuel, 12% Sout
Slide 23: Outlook and focus for remainder of the year
Outlook and focus for remainder of the year * Three new licences this year: two manufacturing licences with Delta and Denso, and a system licence with Thermax *« Bosch, Doosan, Delta and Denso progressing towards scaled production * Continue to grow our relationship with Weichai in China for station
Slide 24: Questions
Questions Investor Relations investors@cerespower.com Ceres Power Holdings pic Viking House, Foundry Lane, Horsham RH13 5PX T: +44 (0)1403 273463 | E: info@cerespower.com Cares