Itm Power Plc · LSE:ITM
Itm Power — Investor Presentation (September 2017)
29 slides from Itm Power's investor presentation, September 2017
Slide 1: Project Cavendish Investor Presentation
PROJECT CAVENDISH INVESTOR PRESENTATION SEPTEMBER 2017 | LONDON
Slide 2: Important Notice
These presentation materials are confidential and have been issued in connection with the proposed placing of new ordinary shares of £0.05 pence each (the "Placing Shares") in the capital of ITM Power plc (the "Company") and the admission of the Placing Shares to trading on the AIM market of the Lon
Slide 3: ITM Power Investment Case | Why Now?
ITM POWER INVESTMENT CASE | WHY NOW? ITM Power has reached a tipping point | backlog £36.7m | opportunity pipeline £180m+ • A market leader in rapid response electrolysers and integrated hydrogen energy systems • Strong momentum in hydrogen adoption driven by accelerating shift to clean renewable en
Slide 4: 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 4 HYDROGEN ENERGY SYSTEMS
Slide 5: Company Evolution | Product Scale-Up
COMPANY EVOLUTION | PRODUCT SCALE-UP Company and market at the tipping point: • Ten years of R&D leading to first product sale in 2011 10MW • Subsequent focus on optimising and scaling up product at a commercial price point • Established reference plant driving significant growth in backlog 1MW 3MW
Slide 6: ITM Power | Business Development
ITM POWER | BUSINESS DEVELOPMENT From project initiation to after sales support Key Clients: • Project initiation and development • Customer led design and modular manufacturing • System sales or build own and operate • After sales support | condition monitoring | data collection and reporting Sales
Slide 7: Manufacturing Facilities
MANUFACTURING FACILITIES Current facilities are at capacity • Power supply and grid connection at capacity • Product acceptance testing at capacity • Need for new facilities to manufacture 100MW units ITM Power Factory MANUFACTURING FACILITIES 7 HYDROGEN ENERGY SYSTEMS
Slide 8: Why Hydrogen?
WHY HYDROGEN? AE AB vom - 2 rat A — () BILROWeR TAVERN \
Slide 9: Multiple Sector Applications
MULTIPLE SECTOR APPLICATIONS HYDROGEN ENERGY SYSTEMS 99
Slide 10: Addressable Industrial Markets
Power-To-Gas Power-To-Gas Storage: • UK Electricity Grid 336TWhrs/yr throughput • UK Gas Grid 897TWhrs/yr throughput • Assuming 3% Hydrogen injection • UK addressable market of €1.1bn Thüga – Germany (2014) Clean Fuel Hydrogen Fuel: • Current UK fuels market is 700TWh • If hydrogen captures 1% of it
Slide 11: Capturing the Opportunity
CAPTURING THE OPPORTUNITY POWER-TO-GAS ENERGY STORAGE RENEWABLE CHEMISTRY CLEAN FUEL 11 Stock image
Slide 12: Energy Storage Technologies
ENERGY STORAGE TECHNOLOGIES ITM Electrolyser provides the lowest cost long duration large scale energy storage 10MW Source: ITM Power plc An electrolyser is a converter of energy rather than an energy store, therefore capacity is unbounded ENERGY STORAGE TECHNOLOGIES 12 HYDROGEN ENERGY SYSTEMS
Slide 13: Bigger Markets Yet to Be Captured
BIGGER MARKETS YET TO BE CAPTURED From project initiation to after sales support • Demonstrated capability in smaller scale projects • First step into larger market • Design for 100MW now ready to order <1MW 1-3MW 10MW 100MW EPC Chemical industry Contractor Refineries Revenue per Order: <€1m €1-3m €
Slide 14: 10MW | 30MW | 100MW Electrolyser Systems
10MW | 30MW | 100MW ELECTROLYSER SYSTEMS Deployment of worlds largest PEM electrolyser with Shell at Wesseling Refinery • Utilises proven and modular PEM electrolysis system • The Wesseling refinery currently uses 180,000t/yr of H2 • This equates to 1,000MW of electrolysis, worth €1 billion • Fully
Slide 15: Buses | Trucks | Trains | Ferries
BUSES | TRUCKS | TRAINS | FERRIES Targeting large scale commercial applications In partnership with • Tyseley Energy Park BUSES 30kg/day - 3MW (1.2t/day) electrolyser to support 20 buses • Pau (France) - 1MW (0.4t/day) electrolyser supporting 8 buses Project negotiations FERRIES • Kirkwall Harbour (
Slide 16: Financials, Fundraise, Use of Funds, Term Sheet
FINANCIALS FUNDRAISE USE OF FUNDS TERM SHEET 16
Slide 17: Backlog and Opportunity Pipeline
BACKLOG AND OPPORTUNITY PIPELINE Backlog* Opportunity Pipeline Renewable Chemistry Power to Gas Clean Fuel Other £180m+ Recognised Revenue • 55+ projects tendered • c.£3m typical deal size (*under contract or in final stages of negotiation) BACKLOG AND OPPORTUNITY PIPELINE 17 2 HYDROGEN ENERGY SYSTE
Slide 18: Transition from Grants to Commercial Sales
TRANSITION FROM GRANTS TO COMMERCIAL SALES Development Phase The Future Current Tipping Point 100% Research & Build Own Commercial Sales Development and Operate Sales 90% Grants • Financed the build • First of a kind • Opportunity 80% up of ITM’s IP pipeline in • Establishment Percentage of Revenue
Slide 19: Selected Financials
SELECTED FINANCIALS Year ended 30 April 2017: Income Statement FY2017 FY2016 Change Revenue 2.4 1.9 24% • Commercial Sales Cost of Sales (1.8) (1.5) 18% • 29% Gross Margin Gross Profit 0.6 0.4 44% Operating Costs Research & Development (2.0) (2.0) 3% Protype production & engineering (2.6) (3.0) (12%
Slide 20: Use of Funds
USE OF FUNDS c.£25m firm placing to address the two main barriers to growth • Working capital: Growth acceleration c.£22.5m (90%) • New premises: Scale-up and time to market c.£2.5m (10%) De-risked Balance Sheet Working Capital New Premises Identified expected to provide enhanced: • Required for lar
Slide 21: Summary
SUMMARY Company and market at the tipping point: • The hydrogen industry is at a tipping point • The addressable markets are current, global and huge • ITM Power is well placed to exploit this growing market • Rapidly growing order book with blue chip partners • Working capital and expansion capital
Slide 22: Project Cavendish: Appendix
PROJECT CAVENDISH INVESTOR PRESENTATION: APPENDIX SEPTEMBER 2017 | LONDON 22 2
Slide 23: What Is an FCEV Refuelling Station?
WHAT IS AN FCEV REFUELLING STATION? Buffer Tank 20bar 15m3 tank ITM Power Electrolyser 80kg/day expandable to Tube trailer connection 500kg/day in 20ft container Off take of hydrogen for back up supply and other applications BOC | Linde Compression Ionic Compressor and gas storage, Dispenser 600kg/d
Slide 24: Replicable 10MW Module
REPLICABLE 10MW MODULE HRS scale up through replication • Ability to satisfy specific refuelling profiles • Sophisticated modelling to size systems correctly • Use of proven compressor technology • Modularity provides flexibility 10MW (4t/day) 30MW (12t/day) 50MW (20t/day) REPLICABLE 10MW MODULE 24
Slide 25: Hydrogen Council | Est. Jan 2017
HYDROGEN COUNCIL | EST. JAN 2017 World Economic Forum Davos January 2017 HYDROGEN COUNCIL | EST. JAN 2017 HYDROGEN ENERGY SYSTEMS 25 2
Slide 26: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT CONSOLIDATED INCOME STATEMENT 26 2 HYDROGEN ENERGY SYSTEMS
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET CONSOLIDATED BALANCE SHEET 27 2 HYDROGEN ENERGY SYSTEMS
Slide 28: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT CONSOLIDATED CASH FLOW STATEMENT 28 2 HYDROGEN ENERGY SYSTEMS
Slide 29: Shareholders
SHAREHOLDERS Percentage of voting rights Number of ordinary Name of holder and issued share capital shares JCB Research 12.4% 30,970,365 Allianz Global Investors 11.0% 27,499,989 P Hargreaves 8.0% 20,084,382* Quilter Cheviot 5.3% 13,354,490 Herald Investment Management 3.7% 9,322,431 D J Highgate 3.