Itm Power Plc · LSE:ITM
Itm Power — H1 2019 Earnings Presentation
23 slides from Itm Power's earnings presentation, January 2019
Slide 1: Interim Results Presentation
Interim Results Presentation January 2019 | London Graham Cooley, CEO | Andy Allen, FD
Slide 2: Presentation Contents
PRESENTATION CONTENTS HYDROGEN ENERGY SYSTEMS ▪ What we do? ▪ Markets ▪ Product Offering ▪ Cost Structure ▪ Production Capacity ▪ Financial Results ▪ Pipeline Analysis ▪ Tender Opportunity Pipeline Interims Presentation | London | January 2019
Slide 3: What We Do?
WHAT WE DO? HYDROGEN ENERGY SYSTEMS Unique selling points: ▪ Rapid response: less than 1 second ▪ Elevated Pressure: 20 - 50 bar ▪ High efficiency: 70 - 86% (with heat recovery) ▪ Small Footprint: smaller than alkaline ▪ Low cost: approaching large scale alkaline ▪ Reference plant: at MW scale ▪ Exp
Slide 4: Markets
MARKETS HYDROGEN ENERGY SYSTEMS Sector Coupling: Sector: Need: ▪ Power: Energy storage ▪ Heat: Renewable gas ▪ Mobility: Carbon reduction ▪ Commodities: Carbon reduction Power | Heat | Mobility | Commodities
Slide 5: What We Do?
WHAT WE DO? HYDROGEN ENERGY SYSTEMS 2011 2013 2015 2016 2017 2019 ITM Power manufactures integrated hydrogen energy systems
Slide 6: Hydrogen Refuelling Stations (HRS)
HYDROGEN REFUELLING STATIONS (HRS) HYDROGEN ENERGY SYSTEMS Expanding Fleet of Revenue Generating Assets: ▪ 7 UK HRS in operation ▪ 1 US HRS in operation ▪ 6 UK HRS in construction ▪ Current hydrogen sales capacity of £9m pa ▪ Currently dispensing 20 tonnes pa ▪ Load aggregation for Grid Balancing IT
Slide 7: 10MW | 30MW | 50MW HRS System Designs
10MW | 30MW | 50MW HRS SYSTEM DESIGNS HYDROGEN ENERGY SYSTEMS Buses | Trucks | Trains | Ferries
Slide 8: 3MW Bus Refuelling | Birmingham
3MW BUS REFUELLING | BIRMINGHAM HYDROGEN ENERGY SYSTEMS Birmingham Bus Project: ▪ 3MW of rapid response electrolysis ▪ 350bar bus refueller ▪ 1200 kg/day capacity ▪ 350 and 700 bar public refueller ▪ Opening Q2 2019 for cars and buses ▪ 3MW of FCDM combined with RE contract 3MW Grid Balancing combin
Slide 9: Shell 10MW Project | World's Largest
SHELL 10MW PROJECT | WORLD’S LARGEST HYDROGEN ENERGY SYSTEMS 10MW PEM electrolyser for Shell: ▪ Flagship 10MW project with Shell ▪ Largest PEM electrolyser in the world ▪ Largest refinery in Germany ▪ Primary Grid Balancing (1 and 4 sec.) ▪ Load Balancing ▪ Future direct RE coupling Building the wor
Slide 10: 100MW Plant Designs
100MW PLANT DESIGNS HYDROGEN ENERGY SYSTEMS 100MW PEM electrolyser system designs: ▪ Based on 10MW standard skids ▪ Increasing industrial interest ▪ Rapid response ▪ Genuine industrial scale Industrial Hydrogen | P2G | Refineries | Ammonia | Steel
Slide 11: Electrolyser System Cost Considerations
ELECTROLYSER SYSTEM COST CONSIDERATIONS HYDROGEN ENERGY SYSTEMS ITM Electrolyser Cost Projections ▪ Expect system sizes to grow over time ▪ Larger scale enable cost reduction ▪ Larger volume enable efficiencies ▪ Continuous technology improvements ▪ Sensitive to scope of supply <€1,000/kW today @ MW
Slide 12: Production Capacity
PRODUCTION CAPACITY HYDROGEN ENERGY SYSTEMS Production Capacity ▪ Colocation into new production facility ▪ Manufacturing space increased by 5x ▪ Adoption of semi-automated stack component preparation ▪ Increase of power on-site to allow testing of larger systems ▪ Heads of terms agreed Production c
Slide 13: Finances
Finances ▪ Revenue and Targets ▪ Pipeline ▪ Partnerships £33.6M Under Contract or in Negotiation
Slide 14: Financial Snapshot | Final Results
FINANCIAL SNAPSHOT | FINAL RESULTS HYDROGEN ENERGY SYSTEMS Total income: £5.0m (£4.4m), comprising: ▪ Revenue: £1.2m (£1.7m) ▪ Grant income plus grants receivable for capital projects: £3.8m (£2.7m) ▪ As in previous years, revenue is expected to be weighted towards the second half Loss from operatio
Slide 15: Contracts Pipeline | Summary
CONTRACTS PIPELINE | SUMMARY HYDROGEN ENERGY SYSTEMS Total Under Contract or in Negotiation: £33.6M ▪ Reporting the number 4 times per year ▪ Stopped putting it in all RNSs (advice from Investec | Tavistock) ▪ As of today, total backlog of £33.6m (£37.4m) ▪ £23.2m (£27.0m) of projects are under cont
Slide 16: Financial Snapshot | Final Results
FINANCIAL SNAPSHOT | FINAL RESULTS HYDROGEN ENERGY SYSTEMS Transition from grants to sales ▪ Grants result in revenue generating assets ▪ Crossover for the Backlog was 2018 ▪ Sales are the company’s focus Revenue | Grants | Sales
Slide 17: Contracts Pipeline | Summary
CONTRACTS PIPELINE | SUMMARY HYDROGEN ENERGY SYSTEMS Total Under Contract or in Negotiation: £33.6M
Slide 18: Contracts Pipeline | By Sector
CONTRACTS PIPELINE | BY SECTOR HYDROGEN ENERGY SYSTEMS Sector Negotiation/Contract Industrial £14.6M Fuel £11.2M P2G £2.2M Maintenance £0.4M Other £5.1M Total Under Contract or in Negotiation: £33.6M
Slide 19: Tender Opportunity Pipeline
TENDER OPPORTUNITY PIPELINE ▪ Criteria ▪ Pipeline Movements ▪ Pipeline Analysis Total Opportunity Pipeline: £240M+ | 280MW+
Slide 20: Tender Opportunity Pipeline
TENDER OPPORTUNITY PIPELINE HYDROGEN ENERGY SYSTEMS Assessment and qualification process: ▪ Must have been tendered in the last 12 months ▪ Project ready to go with finance in place ▪ Currently £240m, representing 36 commercial tender responses ▪ Average project size of £6m (£3.5m) ▪ Reflects strong
Slide 21: Revenue | Backlog | Tenders
REVENUE | BACKLOG | TENDERS HYDROGEN ENERGY SYSTEMS Tenders Backlog Income Strong upward trend: ▪ Tender pipeline £240m+ ▪ Backlog: £33.6m ▪ 2018 Revenue: £14m up 53% Revenue | Backlog | Tender Pipeline | All showing strong growth!
Slide 22: Business Development
BUSINESS DEVELOPMENT HYDROGEN ENERGY SYSTEMS ITM Power represented in seven territories Process UK Germany France US & Canada Nordics Australia Japan Policy Marcomms Andy Ellis Charles Calum Lucas Steve Jones Kris Olsen Neil Sumitomo Marcus Rebecca Purkess McConnell Bertrand Thompson Corporation New
Slide 23: Interim Results Presentation
Interim Results Presentation January 2019 | London Graham Cooley, CEO | Andy Allen, FD