Ceres Power Holdings Plc · LSE:CWR
Ceres Power — FY2016 Earnings Presentation
29 slides from Ceres Power's earnings presentation, 2016
Slide 1: Final Results for the year ended 30 June 2016
FINAL RESULTS For the year ended 30 June 2016
Slide 2: Our vision
Our vision “A fuel cell in every home and business” 2
Slide 3: Opportunity
Opportunity Global opportunity • high growth multi $bn distributed generation fuel cell market • highly scalable business - OEM partner & licensing technology Partnering with leading global companies across multiple markets - Honda and Nissan and Cummins - residential, datacentre, commercial and tra
Slide 4: Our next generation SteelCell
Our next generation SteelCell - £100m investment to date - 47 patent families - Unique British technology 4
Slide 5: Commercial highlights
Commercial highlights Jan ‘16 • Honda Power Systems - several applications • Joint stack development Jun ’16 • SOFC stack to extend range of electric vehicles • £0.6m with Innovate UK Sep ’16 • Residential Field trials in UK to begin in Sept ‘16 • Shows technology maturity & UK opportunity • €0.6m -
Slide 6: Highlights (cont.)
Highlights (cont.) Financial • £20m equity raised in October ‘16 secures financial strength Technology • Release of V3 and V4 technologies to customers • High speed print line commissioned • 10x reduction in process time • Multi kW demonstration system built • > 55% net efficiency – enables new powe
Slide 7: Next year - key activities and outlook
Next year - key activities and outlook • Mature 1kW residential offering through field trialling in 2017 and secure system development with OEM partners • Develop multi kW offering and capability to open new markets • Complete the scale-up of all major manufacturing process steps for manufacturing p
Slide 8: Financial highlights – income statement
Financial highlights – income statement £m FY FY Change 2016 2015 Revenue and other operating income 1.7 0.9 0.8 - Revenue 1.1 0.3 0.8 - Other operating income 0.6 0.6 - CoS and operating costs (14.3) (12.7) (1.6) Operating loss (12.9) (11.7) (1.2) Income tax credit 2.2 1.6 0.6 Loss for the financia
Slide 9: Financial highlights – cash flow
Financial highlights – cash flow £m FY FY Change 2016 2015 Operating cash flows (10.6) (9.7) (0.9) Changes in working capital (1.2) 0.5 (1.7) Cash used in operations (11.8) (9.2) (2.6) Capital expenditure (1.3) (1.2) (0.1) Tax received in the period 1.7 1.2 0.5 Equity-free cash outflow1 (11.3) (9.1)
Slide 10: A new energy system
A new energy system • Huge challenge as energy system converges • Transport, heat, power and data 10
Slide 11: Centralised power vs Distributed power
Centralised power Distributed power - Ageing infrastructure - Cheaper energy bills 30% - Rising energy costs - Power 50% efficiency - 30-40% efficiency + heat 90% - $200Bn Market 2020 $40Bn Fuel Cell 2022 11
Slide 12: SteelCell Applications
SteelCell Applications Commercial Data Centers Electric vehicles Residential 12
Slide 13: Home/Business
Home/Business • Distributed generation using fuel cells is the most efficient fuel to power ~30% lower energy costs ~30% lower carbon ~18 million homes 1kW system Field testing started Sept ‘16 13
Slide 14: Japanese microCHP opportunity for SteelCell
Japanese microCHP opportunity for SteelCell 5 million 5,000 1 million 1,000 CUMULATIVE UNITS (000’s) 150 135k 100 85k 50k 50 25k 5k 12k 2009 2010 2011 2012 2013 2014 2020 2030 ACTUALS TARGETS 14
Slide 15: Data Centres
Data Centres • Fuel Cells provide primary power • Grid backup is secondary • Eliminates diesel ~ Zero emissions ~ >1% of global energy and growing Multi kW system Development started Q3 2016 15
Slide 16: We are working with
We are working with + other partners under confidentiality agreements 16
Slide 17: So why is SteelCell the solution?
So why is SteelCell the solution? PEM cell SOFC cell SteelCell Cost Efficiency Robustness Fuel flexibility 17
Slide 18: SteelCell benchmark results: Efficiency
SteelCell benchmark results Highest efficiency 700W system 60 Target 55 55 Efficiency %LHV 50 51 SOFC SteelGen 45 40 PEM 35 30 2008 2010 2012 2014 2016 18
Slide 19: SteelCell benchmark results: Cell Power
SteelCell benchmark results Continuous SteelCell technology improvement 35 Target 30 Current R&D Status 25 Development Cell Power Targets 20 Released to Customers 15 10 5 0 2012 2014 2016 2018 2020 Year 19 Cell power at 0.75 V/cell on H2/N2 fuel
Slide 20: Our offering
Our offering Established Companies e.g. Honda SteelCell Supply & License New Market Entrants e.g. Cummins Development: Engineering services, Systems Licensing, SteelCell supply
Slide 21: Over $1Bn/yr global opportunity
Over $1Bn/yr global opportunity Possible annual royalty revenues APPLICATION > 5 GW >10 GW >10 GW >10 GW DATA CENTRE APU / RESIDENTIAL COMMERCIAL REGION / BACK UP RANGE EXTENDER JAPAN $42m KOREA $28m EUROPE $220m USA & RoW $200m TOTAL $490m $245m $490m $245m 20% market share at US$200 / kW 21
Slide 22: Commercial progress
Commercial progress >10 GW APPLICATION > 5 GW >10 GW >10 GW APU / DATA CENTRE RESIDENTIAL COMMERCIAL RANGE REGION / BACK UP EXTENDER Japanese Japanese Pipeline JAPAN Global OEM Global OEM Partner KOREA Pipeline EUROPE Partner USA & RoW Customers 22
Slide 23: Commercial progress: increasing territories
Commercial progress >10 GW APPLICATION > 5 GW >10 GW >10 GW APU / DATA CENTRE RESIDENTIAL COMMERCIAL RANGE REGION / BACK UP EXTENDER JAPAN INCREASING APPLICATIONS INCREASING TERRITORIES KOREA EUROPE USA & RoW Customers 23
Slide 24: We have strong institutional backing
We have strong institutional backing 24
Slide 25: Outlook
Outlook - 5 global partners by end of 2017 - at least 2 partners in commercial launch programmes by end 2018 - Target new applications & open commercial markets - Multi billion $ market opportunity happening now 25
Slide 26: Appendices
* ( Appendices 26
Slide 27: A microCHP product would deliver…
A microCHP product would deliver… ELECTRICITY FC HEAT GAS Carbon Energy Economics - 30% savings before - 1200kg saving/year - All hot water - Hot Water is carbon free - >80% household electricity 27
Slide 28: Electric Vehicle Range Extender
Electric Vehicle Range Extender FC Users Energy Infrastructure - No lengthy charging needed - Lower carbon than pure - No need to wait for a Battery Vehicles hydrogen infrastructure - Maximise operation of fleet - Faster deployment, more - Same range as a normal markets vehicle
Slide 29: Manufacturing supply capability
Manufacturing supply capability - Capacity: 30,000 SteelCells1 per year - Scale with local manufacturing partners 29 1 Equivalent to ~300 1kW stacks