Slide 1: Results Presentation: Full Year to April 30th 2022
Results Presentation F u l l Ye a r t o A p r i l 3 0 th 2 0 2 2 1 4 th S e p t e m b e r 2 0 2 2 Graham Cooley, CEO | ITM Power PLC Andy Allen, CFO | ITM Power PLC
Slide 2: Contents
Results Presentation Contents Bessemer Park | June 2022 An important year: ▪ Macro Picture ▪ Product Roadmap ▪ Production Roadmap ▪ Finances & Guidance ▪ Summary Market leader | Strong momentum | Global markets | Strong partnerships
Slide 3: Macro picture driven by Geopolitics
Results Presentation Macro picture driven by Geopolitics Time for Green Hydrogen: ▪ Geopolitics | Gas price | Cost parity ▪ Green hydrogen at cost parity with Industrial H2 Grey H2 @ $10.65/kg ▪ A market of 70mtpa equivalent to 600GW of Electrolysis ▪ Energy security plans Grey H2 @ $4.27/kg ▪ First
Slide 4: Macro picture driven by Geopolitics
Results Presentation Macro picture driven by Geopolitics Grey H2 @ $10.65/kg Grey H2 @ $4.27/kg Cost parity | Low volatility | Energy security | Zero carbon
Slide 5: Backlog and WIP
Results Presentation Backlog Backlog and WIP ▪ Total: 755MW ▪ Contracted: 77MW | Negotiation: 340MW | Preferred supplier: 338MW ▪ Negotiation unchanged since October 2021 ▪ Delays outside our control: Policy, a risk-off world and FIDs ▪ Delays within our control: New product introduction Market lead
Slide 6: We've been cracking on
Results Presentation We ’ v e b e e n c r a c k i n g o n We’ve been cracking on ▪ Starting serial manufacture ▪ FOAK product developed ▪ Strong Linde relationship ▪ Running Refhyne at full load ▪ First hydrogen at Leuna during SAT of a module ▪ Investing in skills ▪ Developing a new manufacturing s
Slide 7: Product Roadmap
(°) ITM POWER Product Roadmap
Slide 8: Product Roadmap
Results Presentation Product Roadmap MEP 1.0 (2MW) Improved: MEP 2.0 (2MW) Improved: 10MW Module • Pressure: 20bar Pressure • Pressure: 30bar up 50% Scale • Announced on 7th July • Reference Plant: Refhyne Efficiency • Reference Plant: Leuna Manufacturing • Flexible platform • Status: Demonstrated O
Slide 9: Stack Performance: MEP 1.0 on-site vs. targets
Results Presentation MEP 1.0 | On site Stack Performance vs. targets Stack Performance 60 58 FCH-JU SoA 2017 Stack Efficiency (kWh/kg) 56 FCH-JU Target 2020 54 Reducing OPEX 52 FCH-JU Target 2024 50 MEP 1.0 (Refhyne) 48 46 44 42 40 0 0.5 1 1.5 2 2.5 3 3.5 Current Density (A/cm2) Reducing CAPEX
Slide 10: Stack Performance: Competitive Landscape
Results Presentation Competitive Landscape Stack Performance 60 58 Stack Efficiency (kWh/kg) 56 FCH-JU Target 2024 54 Reducing OPEX 52 PEM 50 Average MEP 1.0 (Refhyne) 48 46 MEP 2.0 (Leuna) 44 Continuous Improvement 42 40 0 0.5 1 1.5 2 2.5 3 3.5 Current Density (A/cm2) Reducing CAPEX
Slide 11: Leuna
Results Presentation Leuna Market leader | Strong momentum | Global markets | Strong partnerships
Slide 12: Production Roadmap
(°) ITM POWER Production Roadmap
Slide 13: Five Year Plan: Manufacturing Roadmap
Five Year Plan Manufacturing Roadmap Oct 2021 Plan International Roll Out in GW 5.0 UK Gigafactory 2.0 in GW Bessemer Park Gigafactory in GW 2.5 2.5 1.0 1.5 1.5 1.0 1.0 1.0 5.0 3.5 1.0 1.5 1.5 1.5 New Plan 1.0 Nameplate capacity Planned UK expansion Demand led international expansion ▪ Semi automate
Slide 14: Five Year Plan: Facilities Plan
Five Year Plan Fa c i l i t i e s P l a n Bessemer Park: Europa Drive: Testing Site Scope: Kurt Strasse: 134,000 sqft 18,000 sqft Outdoor capacity 17,000 sqft 1.5GW pa capacity 5MW platform dev. 15 - 25MW power Spares holding Head Office Engineering dev. FAT testing Control centre Technology Centre
Slide 15: Current Facilities | Bessemer Park
Five Year Plan Current Facilities | Bessemer Park Remodelling Bessemer: ▪ Committed installed capacity ▪ Optional additional capacity (8 months notice) ▪ 1.5GW by 2024 ▪ Based on MEP30 skids and stacks Market leader | Strong momentum | Global markets | Strong partnerships
Slide 16: Testing Site Scope
Five Year Plan Te s t i n g S i t e S c o p e Testing Site Scope: ▪ Outdoor testing capacity and product storage ▪ FAT and validation testing ▪ 15MW - 25MW power ▪ Renewables direct coupling desirable Market leader | Strong momentum | Global markets | Strong partnerships
Slide 17: Finances & Guidance
(°) ITM POWER Finances & Guidance
Slide 18: Annual Results: Themes of delivery and positioning
Results Presentation Annual Results Themes of delivery and positioning: ▪ Shell Refhyne I commissioning ▪ Overcoming Leuna delays | supply chain, manufacturing & testing ▪ Building key resource for delivery ▪ Investment for future products and manufacturing ▪ Building to WIP ▪ Motive joint venture M
Slide 19: Annual Results: Financial Snapshot
Results Presentation Annual Results Financial Snapshot: Income Statement: ▪ Sales revenue: £5.6m (2021: £4.3m) up 30% ▪ Adjusted EBITDA Loss* of £39.7m, (£21.7m), increased by 83% Picture of Annual Report ▪ Gross losses £23.5m (2021: £6.5m), increase by 261% Balance sheet: ▪ Cash balance (excluding
Slide 20: Annual Results – Revenue
Results Presentation Annual Results – Revenue Product Revenue Appearing in current financial year (22-23)
Slide 21: Annual Results – Gross margin
Results Presentation Annual Results –Gross margin First-of-a-kind Contract Provision Delivery Warranty Manufacturing, Testing, Refhyne commitment to Provision activities ref | EPC projects – staff 1% Utilised costs
Slide 22: Annual Results – Losses
Results Presentation Annual Results – Losses Workforce Optimisation R&D costs Operations Improvement of £4.2m
Slide 23: Annual Results – Cash
Results Presentation Annual Results – Cash Losses Building WIP Investments for growth: Improving payment terms Sales channels & partnerships Provision movement Products & Manufacturing
Slide 24: Key Hires
Results Presentation Key Hires Team Development: ▪ Tim Calver, Commercial Director ▪ Denise Cockrem, NED ▪ Vicky Williams, CoSec Market leader | Strong momentum | Global markets | Strong partnerships
Slide 25: Resources: Investment in People
Results Presentation Resources Investment in People: ▪ Strengthening the Board & Management Team ▪ New Starters focused on delivery ▪ Apprentices and early school leavers programme Market leader | Strong momentum | Global markets | Strong partnerships
Slide 26: Guidance
Results Presentation Guidance Current Year Guidance: ▪ Product revenue in the range of £23-28m ▪ MW delivered in the range 48-65 MW ▪ Adjusted EBITDA loss of £45-50m with increased focus on overheads ▪ Capital expenditure of £30-40 million, with a focus on development costs ▪ Working capital of £40-
Slide 27: Summary: An important year
Results Presentation Summary An important year: ▪ Cost parity with Industrial hydrogen (market size 70mtpa) ▪ Driving adoption in ammonia and refining ▪ FIDs pending policy ▪ Strong operational progress ▪ Leuna deployment with Linde Engineering an important learning curve ▪ Ensuring capex efficiency
Slide 28: Results Presentation
Results Presentation F u l l Ye a r t o A p r i l 3 0 th 2 0 2 2 1 4 th S e p t e m b e r 2 0 2 2 Graham Cooley, CEO | ITM Power PLC Andy Allen, CFO | ITM Power PLC