Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — redT energy — Investor Presentation (April 2018)
35 slides from Invinity Energy Systems's investor presentation, April 2018
Slide 1: Investor Presentation April 2018
Investor Presentation April 2018
Slide 2: Investment case: redT energy
Investment case: redT energy • A global market leader in vanadium redox flow machines • An energy storage expert, with 29 years experience in the energy industry • Tier-1 manufacturing capability • Over 3.4MWh of machines deployed globally with more than 1.8 million hours operating experience • Prot
Slide 3: What we do: redT energy
What we do: redT energy • Energy storage experts, specialising in durable, energy storage infrastructure which create attractive economic returns for customers • Multi-technology energy storage solutions utilising patented redT flow machines or hybrid systems incorporating lithium • 29 years energy
Slide 4: Sustainable equity value
Sustainable equity value Sustain Scale Energy Storage Expert Functional Technology USP performing team Prove Gen 2 sales Deliver Market seeding programme Gen3 Product complete Orderbook across defined Credibility through products Gen 1 design Case-studies Gen 2 system Ambassadors delivered System Ma
Slide 5: Market Opportunity
Market Opportunity redi
Slide 6: Energy market trends
Energy market trends Cost of Solar Generation Power Price Volatility Grid Service Revenues Tending to $0/kWh Peak Prices Rising USA, UK + others coming online Distributed infrastructure energy storage is now open for business This is real, distributed infrastructure – not opportunistic investments b
Slide 7: Energy storage applications overview
Energy storage applications overview Market Size Grid Connected C&I – Renewables + Storage – ~15% IRR Certain geographies now economic; UK, Australia, Germany, USA $65-103bn Time-shifting for self consumption, contracted services and merchant revenues Off-Grid & Weak Grid – ~30% IRR , 3-5 year payba
Slide 8: redT market segment growth
redT market segment growth Off-Grid UK C&I Totals IRR: ~30% IRR: ~10-20% 3-5 Year Payback 7-10 Year Payback Orders €2.5m 43 units Final stage €18.3m 330 units Australia C&I Distributor Pipeline IRR: ~10-20% IRR: ~10-30% 7-10 Year Payback 3-10 Year Payback €357m
Slide 9: redT channels to mass adoption
redT channels to mass adoption Direct Sales (C&I) Distributors Large Projects Specific (Developers) Programmes UK, Australia, Africa & Local renewable or EU energy experts Large-scale Specific campaigns infrastructure projects directed at Establishes initial Trusted and local to + tenders exploiting
Slide 10: Unlocking on-grid energy storage
Unlocking on-grid energy storage 80% 20% Base Returns Locked In Merchant Revenue Upside Use more solar Access more revenues Firming solar: 24/7 solar power Requires 4-8 hours of storage Perform all services, remain flexible New Solar Batteries: 2 hours Contracted Batteries: 1 service (Freq. response
Slide 11: Comparing energy storage business models
Comparing energy storage business models Energy Storage Infrastructure Battery Storage High % of business case locked-in Returns at risk Flexibility to change over time Non-flexible business case
Slide 12: Unlocking off-grid energy storage
Unlocking off-grid energy storage 100% + Upside Base Returns Locked In Non-Quantifiable Upside Use More Solar Gain Energy Security Firming solar: 24/7 solar power Full independence from unreliable grid Requires 4-8 hours of storage networks – gain business continuity Reduce Carbon Emissions Downsize
Slide 13: Why flow technology?
Why flow technology? redt
Slide 14: Stationary energy storage market
Stationary energy storage market Power GW Pumped Hydro 99% Li-ion Bespoke 1% New market driven by economics Projects Renewable + storage Freq. Resp Flow Machine MW ( currently 0.1%) Small solar Grid Services (All) “Larger than all electric (<2 hours) Renewable Firming vehicle and battery markets (4
Slide 15: It's a machine! Not a battery!
It’s a machine! Not a b******! Single use consumable Ideal for: Frequency Response Tenders – Good return in short run, but not sustainable long term Flexible Platform Asset Ideal for: Multiple, stacked services – Financeable, Infrastructure Asset with good long term returns
Slide 16: Lithium vs flow machines
Lithium vs flow machines Cheap Power Cheap Energy Batteries Machines Short Life Long Life, infrastructure High Levelised Cost Low Levelised Cost of Ownership of Ownership High Maintenance Low Maintenance & % Degradation cost No Degradation 0 to 50% depth of discharge 100% depth of discharge Low recy
Slide 17: Time-shifting solar generation
Time-shifting solar generation Only <2 hour revenue using LIB (<50% cycle, 3-10 years) 6 hours - extra + 4 hour revenue using Flow Machine (100%, 20+ years)
Slide 18: Hybrid energy storage
Hybrid energy storage ee SOMW lil Charge/Discharge events Lithium Battery : o Flow Machine = 20MW . . & Pulse Discharge (Flow Machine) 10MW ; @o 18 <1 hour energy 1-2 hours energy 2-3 hours energy 3-4 hours energy > 4 hours energy re i requiried requiried requiried requiried requiried energy storage
Slide 19: Why redT?
Why redT? redi
Slide 20: redT corporate strategy
redT corporate strategy Experts in energy storage solutions - project finance, software solution, engineering & asset management Revenue-based infrastructure customer business models Outsourced manufacturing – Gigawatt scale, Tier 1 global manufacturing capability One of the lowest Cost Vanadium Ene
Slide 21: Production & deployment overview
Production & deployment overview
Slide 22: Achievements & outlook
Achievements & outlook Recent Achievements Proven UK commercial model - opened up lucrative UK market 1st Vanadium/Lithium hybrid system to be deployed in Australia Flagship demonstration site installed in cooperation with Centrica Key demonstration site commissioned in South Africa (+ multiplier sa
Slide 23: Management & executive team
Management & executive team Management Team Board of Directors Scott McGregor* Dr. Jeff Kenna Chief Executive Officer Chairman of the Board of Directors Joined 2006. 30 years managing business in energy CEO since 2009, extensive experience within mining, sector, policy advisor to EC, World Bank, UN
Slide 24: Appendix
Appendix redi
Slide 25: Financial highlights
Financial highlights H2 2017 Trading Update: “Performance in the second half of the year for the business was as expected with full year trading anticipated to be in line with market expectations” H1 2017 Results: Financial results for the group in H1 2017 were in line with overall management expect
Slide 26: Corporate Timeline
a toml | a Corporate Timeline 4 2017 3 redT deploys over 4MWh of machines and 2015 enters new markets in Australia, E.Europe and t - Company changes name from “Camco Clean : | SE Asia Energy’ to “redT energy” to focus on energy storage solutions ; business 2013 Company wins £3.6m contract to 201 6 s
Slide 27: redT 15-75 machine shipping to Johannesburg
redT 15-75 Machine being prepared for shipping to Johannesburg, South Africa Internal view of redT 15-75 machine performing a charge/discharge cycle
Slide 28: redT 15-75 solar mini-grid project at the Thaba Eco Hotel
redT 15-75 solar mini-grid project at the Thaba Eco Hotel in South Africa
Slide 29: redT's flagship UK 1MWh site at The Olde House
redT’s flagship UK 1MWh site at The Olde House, a working farm and holiday retreat in North Cornwall
Slide 30: Disclaimer
Disclaimer ee
Slide 31: Disclaimer
Disclaimer This document, which has been prepared by, and is the sole responsibility of, redT energy plc (the "Company"), has been prepared solely in connection with the proposed placing of new ordinary shares of €0.01 each in the capital of the Company (the "Placing Shares") and the proposed admiss
Slide 32: Disclaimer
Disclaimer This document does not constitute or form part of an offer or invitation to issue or sell, or the solicitation of an offer to subscribe or purchase, any securities to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful. This document and its contents
Slide 33: Disclaimer
Disclaimer Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementi
Slide 34: Disclaimer
Disclaimer To the extent available, the industry, market and competitive position data contained in this Presentation has come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources
Slide 35: Disclaimer
Disclaimer This document and its contents are confidential and you and your directors, officers, partners, employees, agents and affiliates shall treat and safeguard as strictly private and confidential all information contained in this document and any oral information made available at the Present