Ceres Power Holdings Plc · LSE:CWR
Ceres Power — 18 months ended 31 D Earnings Presentation
28 slides from Ceres Power's earnings presentation, Mar 18, 2021
Slide 1: Preliminary Results
PRELIMINARY RESULTS For the 18 months ended 31 December 2020 18 March 2021 CLEAN ENERGY STARTS WITH CERES
Slide 2: Strategic partnerships go from strength-to-strength
Strategic partnerships go from strength-to-strength Climate action remains number one global challenge. Intention to establish a leading position in the sector to capitalise on the substantial opportunities that exist for clean energy technologies Progress on major contracts has driven an increase i
Slide 3: £181m fundraising to significantly increase addressable market
£181m fundraising to significantly increase addressable market SOFC: 25% of funds SOEC: 55% of funds • Further growth opportunities • New growth opportunities in solid oxide electrolysis (SOEC) in SOFC • Develop differentiated technology to access significant green • Open up new markets in hydrogen
Slide 4: Continuing growth of commercial partnerships
Continuing growth of commercial partnerships Nov 2020 Strategic collaboration Oct 2020 signed with AVL to Doosan Fuel Cell acquires a licence to accelerate systems Jul 2019 Apr 2020 manufacture Ceres' proprietary SOFC licensing, providing Ceres and Doosan Weichai exercises its stacks, announcing its
Slide 5: Progress with key partnerships
Progress with key partnerships • Preparing for mass • Bus trials employing • Manufacturing licence • Strategic collaboration production of SOFC with a target capacity of signed to accelerate complete in H1 2021 50MW in 2024 systems licensing technology • Establishment of the JV in • Extended systems
Slide 6: Financial Update
FINANCIAL UPDATE Richard Preston, Chief Financial Officer
Slide 7: Financial highlights
Financial highlights Revenue and other operating income Gross margin Adjusted EBITDA CY £21.9m CY 67% CY (£10.0m) CY 2019 £19.1m (+15%) CY 2019 67% CY 2019: (£5.3m) 18 months ended Dec 2020 £33.0m 18 months ended Dec 2020 67% 18 months ended Dec 2020 (£11.4m) Net cash used in operating activities Or
Slide 8: Continued growth
Continued growth Revenue growth Revenue mix £m £m Revenue and gross margin growth £25,000k 80% 25.00 70% £20,000k 20.00 60% 15.00 50% £15,000k £m 40% 10.00 £10,000k 30% 5.00 20% £5,000k - CY 2017 CY 2018 CY 2019 CY 2020 10% (5.00) £0k 0% CY 17 CY 18 CY 19 CY 20 Engineering services Supply Licence Ot
Slide 9: Continuing to invest for further growth
Continuing to invest for further growth Cash Opex Adjusted EBITDA Net cash used in operating £m £m activities £m 25.00 1.00 - (1.00) 20.00 (2.00) (3.00) 15.00 (4.00) £m (5.00) £m £m 10.00 (6.00) (7.00) (8.00) 5.00 (9.00) (10.00) (11.00) - CY 2017 CY 2018 CY 2019 CY 2020 2016/17 2017/18 2018/19 2019/
Slide 10: Existing cash and £181m raise positions Ceres for growth
Existing cash and £181m raise positions Ceres for growth 18 months £110m existing cash for ended 31 Dec JV and current markets 2020 CY 2020 CY 2019 Change £m £m £m £m Operating cash flows (11.4) (9.8) (5.4) (4.4) £181m fundraise for future Changes in working capital 3.1 5.0 (0.1) 5.2 Tax received in
Slide 11: Strategy and Outlook
STRATEGY AND OUTLOOK Phil Caldwell, Chief Executive
Slide 12: The time is right for growth to tackle climate change
The time is right for growth to tackle climate change Policy Industry Green investment • More than 20 countries have now • Climate action remains the single • Shareholder resolutions increasingly published dedicated hydrogen biggest challenge. If anything Covid calling for better disclosures of stra
Slide 13: Clean energy technology to address climate change
Clean energy technology to address climate change Ceres core IP, 1kW Global demand for energy Stationary to 20kW. By sector SOFC Potential for 150- 500kW utility Residential & POWER scale Commercial Power: 29% HIGHER POWER Others: 13% Ceres 30kW Transport today. SOFC Potential for 150kW+ for trucks
Slide 14: Clean energy starts with Ceres: Growing our business
Clean energy starts with Ceres: Growing our business POWER HYDROGEN Same core cell & stack technology platform Same IP portfolio covering SOEC and SOFC Same manufacturing process and supply chain Same partnering model providing scale Commercialisation phase Development phase • High efficiency power
Slide 15: Ceres solid oxide flexibility for generating clean power and hydrogen
Ceres solid oxide flexibility for generating clean power and hydrogen Natural gas Hydrogen (H2) H2 to power Commercial Fuel in Ammonia (NH3) Biofuels CHP E-fuels/synthetic fuels Shipping Data Heavy centres transport Distributed H2 power POWER Power out out HYDROGEN NG grid/H2 Marine blend transport
Slide 16: Solid oxide electrolysis: high potential for industrial applications
Solid oxide electrolysis: high potential for industrial applications SOEC is most efficient electrolyser technology Key differentiating factor as energy costs are majority Industrial uses, 75-85+% SOEC steel and e-fuels efficiency2 of hydrogen costs today Potential: highest efficiency, utilises wast
Slide 17: Expected development timeline
Expected development timeline Q4 2020 H2 2022 Q1 2024 Core technology Prototype system operational Next Gen stack release Q4 2021 Q4 2023 2025 ECM subsystem Gen 2 system operational First commercial systems operational Target hydrogen production at <$1.50/kg1 Minimum viable product demonstration OEM
Slide 18: 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 19: Doosan announces marine system development with Hyundai
Doosan announces marine system development with Hyundai Doosan has today announced an MOU with Korea Shipbuilding & Offshore Engineering, a shipbuilding division of Hyundai Heavy Industries, to jointly develop an SOFC system that provides cleaner power for ships System based on Ceres' proprietary SO
Slide 20: Building new licensing revenues from the same business model
Building new licensing revenues from the same business model 2024: SOFC mass market HYDROGEN launch 2020: SOFC Royalties Partners scaling up Licence fees, towards mass engineering services and hardware sales market launch POWER Supply for Supply for Royalties customer programmes customer programmes
Slide 21: Summary and outlook
Summary and outlook Urgency for climate action continues to drive the global demand for clean energy technologies Strategy of licensing to global partners, with a leading position in their products and markets, continues to be highly successful Despite the disruption from Covid we have delivered a s
Slide 22: Appendices
APPENDICES
Slide 23: Electrolysis cell module and core stack technology
Electrolysis cell module (ECM) Core stack technology • Aiming to deliver operational megawatt-scale system by H2 2022 • Ongoing development to optimise technology and validate lifetime performance © Ceres Power Ltd 2020 23
Slide 24: Rapidly growing market for electrolysis to meet 2050 Targets
Rapidly growing market for electrolysis to meet 2050 Targets By 2050 hydrogen could 539 100% meet 18% of global final Power energy demand 63 generation, buffering By 2050 a potential 77 Building heat Other forms of and power 50% US$2.5 trillion market for hydrogen hydrogen gas and HYDROGEN electroly
Slide 25: P&L summary
P&L summary Statutory results Proforma results 18 months 12 months 12 months 12 months ended ended ended ended 31-Dec-20 30-Jun-19 31-Dec-20 31-Dec-19 Revenue 31,682 15,300 21,671 17,199 Cost of sales (10,355) (3,804) (7,085) (5,612) Gross profit 21,327 11,496 14,586 11,587 Other operating income 1,
Slide 26: Cashflow summary
Cashflow summary Statutory results Proforma results 18m ended 12m ended 12m ended 12m ended 31-Dec-20 30-Jun-19 31-Dec-20 31-Dec-19 Loss before income tax (17,309) (7,372) (14,524) (7,344) Adjustments (non-cash items) 5,941 1,504 4,732 1,906 Movements in working capital 3,084 664 5,075 (148) Income
Slide 27: Balance sheet summary
Balance sheet summary 31-Dec-20 30-Jun-19 £'000 £'000 Non-current assets Property, plant and equipment 14,979 9,769 Right-of-use assets 3,971 - Intangible assets 4,909 1,322 Long-term investments 8,000 - Other receivables 741 741 Total non-current assets 32,600 11,832 Current assets Inventories 2,10
Slide 28: 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
Ceres Power Holdings — 18 months ended 31 D Earnings Presentation on 6ix