Ceres Power Holdings Plc · LSE:CWR
Ceres Power — H1 2021 Earnings Presentation
23 slides from Ceres Power's earnings presentation, Sep 30, 2021
Slide 1: Interim Results for the six months ended 30 June 2021
INTERIM RESULTS For the six months ended 30 June 2021 30 September 2021 CLEAN ENERGY STARTS WITH CERES
Slide 2: Expanded strategy for unique technology to address climate change
Expanded strategy for unique technology to address climate change Revenue and other income up 96% to £17.4m (H1 2020: £8.9m), reflecting strong progress of commercial partnerships. At sector-leading gross margin of 72% Successfully raised net proceeds of £179m in March through an equity fundraising
Slide 3: Single product to multiple applications and customers
Single product to multiple applications and customers SteelCell® technology enables high efficiency energy conversion at low cost Stack Engaging with global majors in Oil & Gas, Industrial Gas and Clean Energy © Ceres Power Ltd 2021 3
Slide 4: Power products moving to commercialisation
Power products moving to commercialisation • Completed development of • Investing • Continue to provide low 10kW SOFC system for 2024. Plans up to 100 small- volumes of stacks to Miura for buildings. Soft commercial scale stationary fuel cell power its commercial product. Slower launch in 2022 plant
Slide 5: International Maritime Organization has mandated reduction of GHG emissions
International Maritime Organization has mandated reduction of GHG emissions by at least 50% by 2050 compared to 2008 levels Doosan has signed two MOUs with Navig8 and with Hyundai Heavy Industries Successful in two separate feasibility projects awarded UK grant funding as part of the Clean Maritime
Slide 6: Further strength added to the management team
Further strength added to the management team Caroline Hargrove CBE FREng joining the Executive team as Chief Technology Officer from 25 October 2021. Strong experience in growing and managing technical teams in fast moving innovative environments and commercialising new technologies across a range
Slide 7: Financial Update
FINANCIAL UPDATE
Slide 8: Financial highlights for six months ended 30 June 2021
Financial highlights for six months ended 30 June 2021 Revenue and other Gross margin Adjusted EBITDA Equity free cashflow operating income £17.4m 72% (£4.5m) (£18.7m) +96% 2020: 79% 2020: (£5.0m) 2020: (£6.1m) Order book 1 Pipeline 2 Cash and short-term Net equity raised investments £42.0m* £43.8m*
Slide 9: SOFC business drives strong top line growth
SOFC business drives strong top line growth Revenue growth Revenue mix £m £m 20 90% 20 79% 80% 72% 70% 15 15 67% 59% 60% 50% 10 10 40% 30% 5 5 20% 10% - - 0% H2 2019 H1 2020 H2 2020 H1 2021 H2 2019 H1 2020 H2 2020 H1 2021 31 Dec 19 30 Jun 20 31 Dec 20 30 Jun 21 31 Dec 19 30 Jun 20 31 Dec 20 30 Jun 2
Slide 10: Fundraise allows further investment for future growth
Fundraise allows further investment for future growth • Fundraise allows a step change in 20 investment to maximise future value 15 • Employing over 430 people at 30 June 2021 10 • Funds being put to work R&D increasing much of it for both SOEC 5 and larger SOFC applications • Capital investment on
Slide 11: Beginning of investment phase for electrolysis
Beginning of investment phase for electrolysis Adjusted EBITDA by segment £m 31 Dec 19 30 Jun 20 31 Dec 20 30 Jun 21 H2 2019 H1 2020 H2 2020 H1 2021 • Separating key financial metrics of 1 electrolysis from the core fuel cell business to help show progress and - investment in each area (1) (2) • SOF
Slide 12: Business Strategy
BUSINESS STRATEGY
Slide 13: Now addressing potentially even greater market for SOEC
Now addressing potentially even greater market for SOEC FUEL IN ENERGY STORAGE POWER TO HOMES H2 FOR E-CHEMICALS POWER TO BUSINESSES H2 FOR E-FUELS POWER TO TRANSPORT H2 FOR INDUSTRIAL FEEDSTOCKS RENEWABLE H2 GAS BLENDING ENERGY IN © Ceres Power Ltd 2021 13 Green graphics and text indicate potential
Slide 14: Strong investor backing for net £179m fundraise and strategy
Strong investor backing for net £179m fundraise and strategy SOFC: 25% of funds SOEC: 55% of funds • Growth opportunities • Opportunity for differentiated SOEC technology • New markets • Access significant green hydrogen market for industrial • Industry standard in SOFC applications Core investment
Slide 15: First 1MW-class SOEC system demonstrator due to be operational in 2022
First 1MW-class SOEC system demonstrator due to be operational in 2022 Specification Target Production 600kg/day System efficiency >80%, LHV, AC Target cost <$1.50/kg1 © Ceres Power Ltd 2021 1: Energy cost: US$20/MWh and 15 >80% efficiency at volume
Slide 16: Strong interest in SOEC from potential partners
Strong interest in SOEC from potential partners Suppliers of green hydrogen Demand for green hydrogen (MT) Engaging with global majors in each Global demand projected to double every sector to demonstrate and commercialise decade to 2050 539 our technology in the following sectors: Demand Oil and ga
Slide 17: Scaling the ecosystem into higher power and e-fuels
Scaling the ecosystem into higher power and e-fuels New applications drive demand for cell Manufacturing for SOFC and SOEC and stack production Moving into higher power systems and broadening Target global manufacturing partners to applications in each region (through direct and supply cells and sta
Slide 18: Building new licensing revenues from the same business model
Building new licensing revenues from the same business model 2024: SOFC mass market launch 2020: SOFC Partners scaling up Royalties towards mass Licence fees, market launch engineering services and hardware sales Supply for Supply for customer programmes customer programmes Royalties Licence fees, E
Slide 19: Summary and outlook
Summary and outlook On track to be in line with revenue consensus estimates of £31.5m for the full year Good visibility on commercialisation of products and new interest in higher power and maritime applications Discussions progressing well with Weichai on the JV and wider strategic relationship Act
Slide 20: Appendices
APPENDICES 20
Slide 21: Cashflow and cash
Cashflow and cash Cash and investments Equity free cash flow As at £m £m 300 31 Dec 19 30 Jun 20 31 Dec 20 30 Jun 21 H2 2019 H1 2020 H2 2020 H1 2021 - 250 200 (5) 150 (10) 100 (15) 50 - Equity free cashflow (20) 31 Dec 19 30 June 20 31 Dec 20 30 June 21 Increased EFCF loss reflects investment across
Slide 22: Board of Directors
Board of Directors Newly appointed in the period Due to step down 25 Oct. Executive Directors Julia King, Baroness Brown Tudor Brown of Cambridge Non-Executive Director Non-executive Director Warren Finegold Steve Callaghan Uwe Glock Chairman Senior Independent Director Non-Executive Director Qinggu
Slide 23: Thank you
THANK YOU INVESTOR RELATIONS TEAM: +44 (0)1403 273463 investors@cerespower.com info@cerespower.com Ceres Power, Viking House, Foundry Lane Horsham, RH13 5PX UK 23