Ceres Power Holdings Plc · LSE:CWR

Ceres Power — Investor Presentation (March 2014)

34 slides from Ceres Power's investor presentation, Mar 12, 2014

  1. Slide 1: A change of power

    A change of power 12 March 2014

  2. Slide 2: Disclaimer

    Disclaimer This presentation is directed at potential investors in Ceres Power Holdings plc (the “Company”) who are lawfully able under the applicable law to receive this information and attend this presentation, by your action you warrant, represent, acknowledge and agree that you are such an inves

  3. Slide 3: Global Opportunity

    GLOBAL OPPORTUNITY ©Ceres Power 2014 3

  4. Slide 4: Global energy supply at tipping point

    Global energy supply at tipping point USA UK GERMANY KOREA & JAPAN Grid outages cost £150bn to replace 20% Move to renewables 97% energy imported $80bn / year of infrastructure by 2020 ⇒ Grid instability 20% increase in gas use post Fukishima ©Ceres Power 2014 4

  5. Slide 5: Natural gas is growing part of future energy mix - 25% by 2040

    Natural gas is growing part of future energy mix - 25% by 2040 USA UK GERMANY KOREA & JAPAN “Closer to energy Strategic part of UK Gas increasing from Consume 52% of independence” power generation 20 to 50 GW by 2030 world LNG1 Obama State of Union 1IG International Gas Union 2012 ©Ceres Power 2014

  6. Slide 6: Fuel Cell most efficient way to generate power from natural gas

    Fuel Cell most efficient way to generate power from natural gas 45 % efficiency >50 % efficiency ©Ceres Power 2014 6

  7. Slide 7: The way we generate power needs to change

    The way we generate power needs to change… Consumer behaviour has changed… …but energy hasn‟t ©Ceres Power 2014 7

  8. Slide 8: Generation at the point of use with fuel cells enable this change

    …generation at the point of use with fuel cells enable this change Centralised Generation Losses Losses Gas Fuel Cell benefits: 100% Efficiency ๏ Reduces electricity cost <40 % up to 60% Fuel Power Station Transmission ๏ Utilises reliable gas infrastructure Distributed Generation ๏ 25% carbon saving

  9. Slide 9: Fuel cell market reached $1bn 2012 – predicted growth to $30bn

    Fuel cell market reached $1bn 2012 – predicted growth to $30bn Stationary Fuel Cells Market Growth1 One Year Fuel Cell Stock Performance 200 Installed Capacity [MW] Fuel Cell Index 150 100 50 0 07 08 09 10 11 12 13 20 20 20 20 20 20 20 Year 1 Fuel Cell Today Industry Review, 2010 & 2013 Renewed inte

  10. Slide 10: OEMs drive global fuel cell growth - backed by subsidies

    OEMs drive global fuel cell growth - backed by subsidies USA GERMANY SOUTH KOREA JAPAN (Business) (Residential & (Business/residential) (Residential) 10’s MW installations transport) 19 MW installations 2014 50,000 installed Subsidies: Subsidies: Subsidies: Subsidies: up to $5k/kW $1.2 Bn $590 m $1

  11. Slide 11: Mass market adoption needs a step change in cost

    Mass market adoption needs a step change in cost ADOPTION SUSIDISED MISSION CRITICAL CLEANTECH COMMERCIALISATION Mission Subsidised Mass Cleantech Critical Adoption Market ©Ceres Power 2014 11

  12. Slide 12: The Ceres Steel Cell

    THE CERES STEEL CELL ©Ceres Power 2014 12

  13. Slide 13: Fuel Cells must demonstrate three features to be commercial

    Fuel Cells must demonstrate three features to be commercial ๏ Viable cost ๏ Turn on-Turn Off ๏ Efficiency ©Ceres Power 2014 13

  14. Slide 14: Steel Cell uses low cost steels enabled by protected ceramics technology

    Steel Cell uses low cost steels enabled by unique, protected, ceramics technology ๏ Viable cost ๏ Turn on-Turn Off ๏ Efficiency ©Ceres Power 2014 14

  15. Slide 15: Steel Cell has demonstrated robustness in aggressive test conditions

    Steel Cell has demonstrated robustness in the most aggressive test conditions ๏ Viable cost ๏ Turn on-Turn Off ๏ Efficiency ©Ceres Power 2014 15

  16. Slide 16: Steel Cells show performance required for prime power applications

    Steel Cells show performance required for “prime power” applications ๏ Viable cost Better than the grid – 45% ๏ Turn on-Turn Off Route to >50% identified ๏ Efficiency ©Ceres Power 2014 16

  17. Slide 17: Business Opportunity

    BUSINESS OPPORTUNITY ©Ceres Power 2014 17

  18. Slide 18: Core technology potential for several global markets

    Core technology potential for several global markets Power & efficiency RESIDENTIAL MARKET: ๏ 1kW 45% ๏ 18m unit market size1 BUSINESS MARKET: Emerging significant market size e.g. > 50% ๏ 5-25kW opportunity ๏ Japan 5-10kW market is 750MW ๏ Data centre market is 3GW pa 1 global domestic boiler and w

  19. Slide 19: Why leading OEMs are evaluating Ceres Steel Cell technology

    Why leading OEMs are evaluating Ceres Steel Cell technology JAPANESE OEMs CERES TECHNOLOGY RESIDENTIAL CONSUMER BENEFIT PEM/SOFC STEEL CELL Increased energy saving High system efficiency 35% to 45 % 45% (Up to 60 %/ kWh electricity) Low cost 1 $20,0001 $7,0001 ➔ $4,000 Affordable Robustness to cycli

  20. Slide 20: OEM progress validates technology and commercial value

    OEM progress validates technology and commercial value DEVELOPMENT / COMMERCIAL Commercial TECHNOLOGY Technology Development PRODUCT Product DEMO LAUNCH launch EVALUATION Evaluation programme SALES sales PROGRAMME programme PROGRAMME DURATION 9 - 12 M 12 – 24 M 12 - 24 M ON-GOING TECHNOLOGY APPLICAT

  21. Slide 21: Ceres' Partners to date

    Ceres‟ Partners to date • Korea‟s No. 1 boiler company > 1m boiler manufacture capacity 1 kW residential • 61% of North American market (instantaneous condensing gas water heaters) 2 Japanese 1 to 5 kW • Leading power products company residential Global OEMs • Consumer and industrial products compan

  22. Slide 22: Potential license deal structure

    Potential license deal structure PRODUCT Product development Technology Route to market Product IP License CERES OEM PARTNERS License fee + royalties/unit CELL/STACK MANUFACTURING MANUFACTURER/ JV Manufacturing/ supply chain Ceres leverages expertise and balance sheet of OEM partners ©Ceres Power 20

  23. Slide 23: Summary

    Summary • Fuel cells are most efficient way to generate power from Natural Gas • Global Opportunity in rapidly growing multi $bn fuel cell market utilising existing gas infrastructure • Steel Cell technology enables mass market adoption for OEM products • Technology focus enables new market applicat

  24. Slide 24: Financial Results

    FINANCIAL RESULTS for the six months to 31 December 2013 ©Ceres Power 2014 24

  25. Slide 25: Highlights

    Highlights During period: o Commercial progress in Japan and Korea leading to revenue growth o Units delivered and tested successfully at customer sites o Increasing third party OEM validation of the Steel Cell technology o Substantial technology progress - increasing efficiency After period: o Sign

  26. Slide 26: Financial highlights – income statement

    Financial highlights – income statement £m H1 „14 H1 „13 Change Revenue from new customers 0.2 0.0 0.2 Release of deferred revenue 0.7 0.5 0.2 Revenue 0.9 0.5 0.4 Recurring operating costs (4.9) (5.9) 1.0 Non-recurring operating costs 0.0 (3.1) 3.1 Other operating income 0.2 0.0 0.2 Income tax credi

  27. Slide 27: Financial highlights – cash flow

    Financial highlights – cash flow £m H1 „14 H1 „13 Change Operating cash flows (2.8) (7.0) 4.2 Changes in working capital (0.9) 1.5 (2.4) Cash used in operations (3.7) (5.5) 1.8 Capital expenditure (0.2) 0.0 (0.2) Tax received in the period 1.0 0.0 1.0 Equity-free cash outflow1 (2.9) (5.6) 2.7 Net ca

  28. Slide 28: Outlook for 2014

    Outlook for 2014 • Commercial focus – Move to next stage agreements – Additional OEMs validating technology • Revenue growth through next stages of commercial partnerships • Exploring new applications for our technology ©Ceres Power 2014 28

  29. Slide 29: Appendix

    APPENDIX ©Ceres Power 2014 29

  30. Slide 30: First major commercial deal under new strategy

    First major commercial deal under new strategy ๏ South Korea is one of the largest domestic boiler markets in the world with 1 million units sold per annum ๏ Generous government grants available for domestic micro CHP - Korean Government has launched a „1 million “green homes” by 2020‟ program. New

  31. Slide 31: A Change of Power

    A CHANGE OF POWER ©Ceres Power 2014 31

  32. Slide 32: The Board

    The Board Alan Aubrey Chairman Phil Caldwell Chief Executive Officer Richard Preston Finance Director Steve Callaghan Senior Executive Director Mike Lloyd Non Executive Director Rob Trezona Non Executive Director ©Ceres Power 2014 32

  33. Slide 33: Major Shareholders

    Major Shareholders IP Group plc 24.7% Richard Griffiths 23.0% Henderson Global Investors 6.5% Sarasin & Partners LLP 6.3% Ali Mortazavi 4.7% Imperial College 1.9% ©Ceres Power 2014 33

  34. Slide 34: Registered Office and Headquarters

    Registered Office and Headquarters http://www.twitter.com/cerespower Ceres Power Limited Viking House https://www.facebook.com/cerespower Foundry Lane Horsham RH13 5PX www.linked-in.com/company/ceres-power United Kingdom Phone: +44 (0) 1403 273 463 Fax: +44 (0) 1403 327 860 Web: www.cerespower.com E

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