Slide 1: Gaining traction!
Capital Market Update August 2023 Shell, 10 MW, Wesseling, Germany Gaining traction! Our journey to volume manufacturing and rapid deployment
Slide 2: Agenda
CAPITAL MARKET UPDATE AUG’23 1. MARKET UPDATE 2. FULL YEAR RESULTS 3. UPDATE ON 12 -MONTH PLAN 4. NEW PRODUCT RELEASE 5. OUTLOOK
Slide 3: Market environment
CAPITAL MARKET UPDATE AUG’23 M a r ke t e n v i r o n m e n t ▪ Climate, decarbonisation and energy independence imperatives have continued to fuel the projected hydrogen demand. The synchronised build-up of a worldwide hydrogen economy is underway at ambitious speed, opening vast demand opportuniti
Slide 4: 2. Full Year Results
CAPITAL MARKET UPDATE AUG’23 2. FULL YEAR RESULTS
Slide 5: Spotlight: Revenue recognition
CAPITAL MARKET UPDATE AUG’23 Spotlight: Revenue recognition DESIGN SIGN -OFF INSTALLA TI ON & ORDER M ANUFACTUR E FAT SHIPPING COM M ISSIONIN G SAT & PROCUREM EN T CASH INFLOWS REVENUE ▪ Revenue is recognised on completion of obligations which is typically “testing of a module” ▪ Typically, this is
Slide 6: Summary financials FY23
CAPITAL MARKET UPDATE AUG’23 Summary financials FY23 Recap (from January) FY23 £m Guidance Jan’23 £m ▪ Historically, ITM had chased an aggressive expansion Cash 283 245-270 strategy, based on technology leadership Revenue 5.2 2.0 Of Which: ▪ As such, ITM underestimated the competencies and Product 4
Slide 7: Cash flow in period
CAPITAL MARKET UPDATE AUG’23 Cash flow in period Cash flow £m Warranty provisions have been made based on Movements in provisions old product generation field data and applying Opening balance 365.9 › Warranty (in-field) £0.7m best estimates to future product that has not yet been deployed for exten
Slide 8: FY24 guidance: Driving for capability
CAPITAL MARKET UPDATE AUG’23 FY24 guidance: Driving for capability Delivering against commercial projects Revenue of £10-18m Product portfolio 2-3x increase compared to FY23 Maintaining technology advantage by R&D Product development and validation EBITDA losses of £45-55m Profitability improving wi
Slide 9: FY24 guidance: Driving for capability
CAPITAL MARKET UPDATE AUG’23 FY24 guidance: Driving for capability Delivering against commercial projects Revenue of £10-18m Product portfolio 2-3x increase compared to FY23 Maintaining technology advantage by R&D Product development and validation EBITDA losses of £45-55m Profitability improving wi
Slide 10: 3. Update on 12-month plan
CAPITAL MARKET UPDATE AUG’23 3. UPDATE ON 12 -MONTH PLAN
Slide 11: Recap: Our 12-month plan
CAPITAL MARKET UPDATE AUG’23 Recap: Our 12-month plan As ITM is transitioning to a volume manufacturer, we are now 6 months into our 12-month plan to solidify our foundations and have made substantial progress in our three focus areas: 1. 1 Concentrate on a standardised core product suite for repeat
Slide 12: Project impressions
CAPITAL MARKET UPDATE AUG’23 Project impressions Yara, 24 MW, Porsgrunn, Norway RWE, 2x 100 MW, Lingen, Germany In the last 6 months, more products have left the ITM factory than in the previous 22 years combined. 12
Slide 13: 3. Update on 12-month plan: Products
CAPITAL MARKET UPDATE AUG’23 3. UPDATE ON 12 -MONTH PLAN P RO D U C T S
Slide 14: Product portfolio substantially narrowed
CAPITAL MARKET UPDATE AUG’23 Product portfolio substantially narrowed Product Description Hpac LAM 15bar stack, 5 KW, Cabinet LEP 1 Container 20 bar LEP 20bar stack, 100 KW, Plug & Play Legacy products: LEP 1 Container 30 bar LEP 30bar stack, 100 KW, Plug & Play › The services we provided to support
Slide 15: Products rationale
CAPITAL MARKET UPDATE AUG’23 Products rationale Stack Skid Plug & Play Container Outlook FULLY INTEGRATED ELECTROLYSER • Second generation under • 36kg/h & high purity development • Standalone automated operation • Engaging with an assembly • Supplied with power conversion system partner to support
Slide 16: Leading stack technology
CAPITAL MARKET UPDATE AUG’23 Leading stack technology ITM’s MEP30 stack technology is the most advanced on the market today selected reasons: ▪ Highest current density, reducing footprint and cost ▪ Leading conversion efficiency at levelised current density, reducing operational cost ▪ Lowest report
Slide 17: 3. Update on 12-month plan: Capital discipline
CAPITAL MARKET UPDATE AUG’23 3. UPDATE ON 12 -MONTH PLAN C A P I TA L D I S C I P L I N E
Slide 18: Organisational refinement
CAPITAL MARKET UPDATE AUG’23 Organisational refinement Restructure and rightsizing ✓ Leaner and flatter in hierarchy, new structure reflecting the nature of the business ✓ Strengthened technology, engineering and product validation focus ✓ Bundled customer interface from sales to delivery ✓ Closer i
Slide 19: Solidifying our foundation (selected examples)
CAPITAL MARKET UPDATE AUG’23 S o l i d i f y i n g o u r f o u n d a t i o n (selected examples) Mitigation of future inventory losses Mitigation of future project cost overruns Design Product portfolio and sales governance ▪ Professionalise engineering (capabilities and processes) ▪ Enhance discipl
Slide 20: Spotlight: Progress MEP30 stack production
CAPITAL MARKET UPDATE AUG’23 Spotlight: Progress MEP30 stack production Improvements to stack build are having the desired effect: ▪ Design FMEA improvements to product ▪ Automation/semi-automation of various production steps, assembly aided by laser-scanning and advanced camera and sensor technolog
Slide 21: Spotlight: Progress MEP30 stack production
CAPITAL MARKET UPDATE AUG’23 Spotlight: Progress MEP30 stack production Improvements to stack build are having the desired effect: FAT testing Stacks produced [cumulative, actuals 2023] ▪ Design FMEA improvements to product Stacks passed ▪ Automation/semi-automation of various production steps, asse
Slide 22: 3. Update on 12-month plan: Debottlenecking / scaling
CAPITAL MARKET UPDATE AUG’23 3. UPDATE ON 12 -MONTH PLAN D E B OT T L E N EC K I N G / S C A L I N G
Slide 23: Facilities expansion
CAPITAL MARKET UPDATE AUG’23 Fa c i l i t i e s e x p a n s i o n Fabrication and R&D expansion › Expansion of Sheffield facilities well underway to make space for R&D and product validation incl. science labs and first-of-a-kind product testing facilities › Allows improved factory layout for stacks
Slide 24: Facilities expansion
CAPITAL MARKET UPDATE AUG’23 Fa c i l i t i e s e x p a n s i o n Fabrication and R&D expansion ITM Power Germany › Expansion of Sheffield facilities well › Located in Linden, central in GER and EU underway to make space for R&D and › Will host various business functions which product validation inc
Slide 25: Testing and automation
CAPITAL MARKET UPDATE AUG’23 Te s t i n g a n d a u t o m a t i o n Testing and power supply › Phased approach to increase test bay capacity to satisfy project needs; more than doubling in 12 months › 50% increased electricity supply from 5 to 7.5 MVA as first step › Further increase to 30 MVA alrea
Slide 26: Testing and automation
CAPITAL MARKET UPDATE AUG’23 Te s t i n g a n d a u t o m a t i o n Testing and power supply Fabrication automation › Phased approach to increase test bay › Automation roadmap in implementation, capacity to satisfy project needs; improvements affecting cycle times and more than doubling in 12 months
Slide 27: 4. New Product Release
CAPITAL MARKET UPDATE AUG’23 4. NEW PRODUCT RELEASE
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Slide 29: Modular deployment
CAPITAL MARKET UPDATE AUG’23 Modular deployment POSEIDON module › Standardised 20 MW core electrolysis process module with optimised footprint › Replicable for scaling up, suitable for indoor and outdoor installation › Consists of skid-mounted units, which can pre-fabricated and pre-tested › Reduced
Slide 30: Leading PEM electrolyser stack technology
Leading PEM electrolyser 2MW Plug & Play electrolyser for Cutting-edge 20MW module for stack technology small to mid-size projects large-scale projects
Slide 31: 5. Outlook
CAPITAL MARKET UPDATE AUG’23 5. OUTLOOK
Slide 32: Outlook
CAPITAL MARKET UPDATE AUG’23 Outlook Today, ITM looks very different from ITM 6 months ago. We are well on track to solidify our foundations and will focus on: › Project delivery › Getting our house in order: second half of 12-month plan implementation › Scaling with existing and new commercial proj
Slide 33: Thank you for your attention!
CAPITAL MARKET UPDATE AUG’23 Thank you for your attention!