Itm Power Plc · LSE:ITM
Itm Power — Non-Deal Roadshow (October 2010)
49 slides from Itm Power's roadshow presentation, Oct 6, 2010
Slide 1: ITM Power plc Investor Road Show
ITM Power plc Investor Road Show, 6th & 7th October 2010 Dr Graham Cooley, CEO and Barry Cunliffe, CFO "I've got my hydrogen fuel cell car and…. it's great, but you have to find a hydrogen filling station.” Jay Leno, The Sunday Times 12/9/10 ITMITM POWER | Final POWER Results | Investor Presentation
Slide 2: Contents
ITM Power plc Investor Road Show, 6th & 7th October 2010 Dr Graham Cooley, CEO and Barry Cunliffe, CFO Contents Introduction Technology Snapshot Products and CE marking update Energy Storage Clean Fuel Financial Summary Legal Statement ITMITM POWER | Final POWER Results | Investor Presentation, Road
Slide 3: Company Positioning
Company Positioning Energy Storage | Clean Fuel Essential Technology & Systems • Harnessing Renewable Energy • Producing Green Hydrogen • Regeneration of Power • A Zero Carbon Footprint Fuel ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 4: Management Team
Management Team Reorganisation • A product driven company • Testing and quality team need to deliver CE marking • Commercial team need to deliver partnerships and deals • Grant funding a major target Dr Graham Cooley Barry Cunliffe Dr Simon Bourne Prof Marcus Newborough Chief Executive Officer CFO &
Slide 5: Appointment of Non-Executive Director
Appointment of Non-Executive Director Rt. Hon Lord Freeman P.C. Currently: • Member of the House of Lords • Chairman Thales UK • Chairman PWC Advisor Board • Chairman RP&C International Advisor Board • NXD of Savile Group; Chemring Group plc and Parity Group plc Formerly: • Conservative MP for Kette
Slide 6: Product and Market Strategy
Product and Market Strategy Market Entry Strategy Building New Markets Positioned for the Big Win • Small Electrolyser products • Energy Storage • Clean fuel • Existing markets • Hydrogen Energy Systems • Partner trials for HFuel • Head to head competition • Articulate new offerings • Develop home r
Slide 7: Technology Snapshot
Technology Snapshot ITMITM POWER | Final POWER | AGM Results Investor Presentation, Show 6th & 730 Presentation Road July 2010 th October 2010
Slide 8: ITM's Suite of Membrane Materials
ITM’s Suite of Membrane Materials A Key Component in the Hydrogen Supply Chain A low cost, high efficiency membrane • Hydrocarbon materials • Cross-linked structure • In-house formulation control • Ease of production • Patented worldwide ITMITM POWER | Final POWER Results | Investor Presentation, Ro
Slide 9: Electrolyser Stacks and Clean Assembly
Electrolyser Stacks and Clean Assembly The Art of Hydrogen Generation Achieving the correct environment • Specialist design expertise • Proprietary assembly processes • Contamination controls • Performance at large scale ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730
Slide 10: Cell and Stack Testing
Cell and Stack Testing A Multi-Staged Qualification Process Gain evidence through extensive evaluation • Increased testing capacity • Well developed testing • Comprehensive monitoring • Establish operational limits ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July
Slide 11: Market Entry Products
Market Entry Products ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 12: Company Positioning
Company Positioning Key Component in the Hydrogen Supply Chain A low cost, high efficiency membrane • 70% efficiency • Blah • Blah ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 13: Company Positioning
Company Positioning Key Component in the Hydrogen Supply Chain A low cost, high efficiency membrane • 70% efficiency • Blah • Blah ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 14: th October ITM ITM POWER
ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 15: th October ITM ITM POWER
ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 16: CE Marking Update
CE Marking Update ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 17: CE Marking Update: The Key to Product Sales in the EU
CE Marking Update The Key to Product Sales in the EU Document evidence of compliance to relevant Directives • Working with GASTEC at CRE to address requirements • Audit and Pre-assessments completed with GASTEC • The Pressure Equipment Directive applies to HPac & HLab • Documentation for HPac Catego
Slide 18: CE Marking Update: Development Plan
CE Marking Update Development Plan Process leading to CE marked commercial products • Design finalisation • Integrated cost engineering • Testing and CE assessment • Sales start 2011 Hannover Major AGM & NHA Review Development Reliability & Warranty TesBng Safety & CE Assessment CE Marking Cost Eng
Slide 19: Product and Market Strategy
Product and Market Strategy Market Entry Strategy Building New Markets Positioned for the Big Win • Small Electrolyser products • Energy Storage • Clean fuel • Existing markets • Hydrogen Energy Systems • Partner trials for HFuel • Head to head competition • Articulate new offerings • Develop home r
Slide 20: The Case for Energy Storage
The Case for Energy Storage ITMITM POWER POWER ITM | Final POWER| Open Results Investor Presentation, DayRoad Presentation | Investor Show Road 6th730 6th & Show 7July 2010 th October & 2010 th October 2010
Slide 21: UK Electricity Demand
UK Electricity Demand Demand varies daily, weekly, seasonally: • Winter peak is 60 GW • Base load plant • Mid merit plant • Peaking plant Data from National Grid ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 22: UK Load Duration Curve
UK Load Duration Curve Plant utilisation over time: • Inefficient utilisation of plant • 40% fully utilised Peak Mid-merit Base load Data from National Grid ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 23: Bulk Commodity Storage
Bulk Commodity Storage Shifting the peaks to fill the troughs: • Turns mid merit into base load • Reduces the need for peaking • Increases system efficiency • Day night arbitrage! Data from National Grid ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th Oct
Slide 24: Bulk Commodity Storage
Bulk Commodity Storage Shifting the peaks to fill the troughs: • Turns mid merit into base load • Reduces the need for peaking • Increases system efficiency • Day night arbitrage! The Balancing Mechanism Reporting System (BMRS) The BMRS website provides near real time and historic data about the Bal
Slide 25: UK Electricity Demand
UK Electricity Demand Adding Intermittent Power: Add wind? • Need take or break decisions • Undermines Base load • Increased need for spinning reserve • Pushes you back down merit order Data from National Grid ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010
Slide 26: UK Generation
UK Generation CO2 targets to be met by power & heavy industry: • 16% reduction in GG emissions by 2020 • 31% renewable generation by 2020 • This cannot be achieved without energy storage! ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 27: Renewable Energy Management: Wind Energy, the UK
Renewable Energy Management Wind Energy: The UK A plentiful resource? • Best Wind resources in Europe • Entering Phase Three of construction in UK • Onshore capacity factor 30%, offshore 40% ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 28: Renewable Energy Management: The Case for Denmark
Renewable Energy Management Wind Energy: The Case for Denmark Study by CEPOS Sept 2009 • 20% of its generating capacity is wind • Only 5% of demand is met by wind • Negative electricity prices • 50% is exported to Sweden and Norway • The report calls for energy storage ITMITM POWER | Final POWER Res
Slide 29: Storing Renewable Energy
Storing Renewable Energy ITMITM POWER POWER ITM | Final POWER | Results | Open Investor DayRoadPresentation, Presentation Investor Show Road 730 6th &6th Show & 7July 2010 th October 20102010 th October
Slide 30: Supply Chain Logistics
Supply Chain Logistics Adding energy storage to the logistics: • Five elements are dynamically balanced • Energy storage is additive Bulk Energy Storage Customer Fuel Genera1on Transmission Distribu1on Services Distributed Energy Storage ITMITM POWER | Final POWER Results | Investor Presentation, Ro
Slide 31: Power Sector Export
Power Sector Export Exporting power to high value applications Supply/Demand mismatch can be alleviated by exporting power to another sector • Fuel is a huge sector • Needs decarbonising ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 32: Hydrogen Fuel
Hydrogen Fuel Drivers for a Clean Fuel Acceptance is now mainstream • Decreases dependence on fossil fuels • Decarbonizes transport • Improves air quality ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 33: Product and Market Strategy
Product and Market Strategy Market Entry Strategy Building New Markets Positioned for the Big Win • Small Electrolyser products • Energy Storage • Clean fuel • Existing markets • Hydrogen Energy Systems • Partner trials for HFuel • Head to head competition • Articulate new offerings • Develop home r
Slide 34: The Vehicles
The Vehicles ITMITM POWER | Final POWER | OpenResults Investor Presentation, DayRoad Presentation 730 Show 6th & th July 2010 th October 2010 ITM POWER | Investor Road Show 6 & 7 October 2010 th
Slide 35: Hydrogen Fuel Cell Vehicles
Hydrogen Fuel Cell Vehicles Hydrogen Cars Serious Traction envisaged around 2015 • Air quality may drive early adoption • Commercial fleet early adoption ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 36: Hydrogen Fuel Cell Vehicles
Hydrogen Fuel Cell Vehicles Hydrogen Cars – 2010 Every major OEM has launched • Honda FCX Clarity • Chevrolet Equinox • Toyota FCHV ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 37: Hydrogen Refuelling Infrastructure
Hydrogen Refuelling Infrastructure Hydrogen Cars – Infrastructure Germany leads the way • FC Vehicle LoI signed 2009 • H2 infrastructure MoU signed 2009 • 1,000 refuelling stations by 2015 • 2015 commitment to FC vehicle roll out in Germany • Letter of understanding signed 2009 • H2-mobility project
Slide 38: Hydrogen Refuelling
Hydrogen Refuelling 2yrs Cascade Refuelling Experience Stationary High Pressure Refueller • Rapid cascade refuelling at 350 bar • A test bed for cascade refuelling • Managing a refuelling cascade is non trivial • Fast refuelling is the USP of hydrogen • Need to understand the gas system in the vehic
Slide 39: Hydrogen Refuelling | Infrastructure: HFuel
Hydrogen Refuelling | Infrastructure HFuel® – 2010 Hydrogen Fuel infrastructure unit • HFuel 15kg/day, rapid cascade refuelling at 350 bar • Flexible, modular and transportable refuelling unit • Targeted at the urban commercial fleet market • Part funded by TSB ITMITM POWER | Final POWER Results | I
Slide 40: Hydrogen Refuelling | Infrastructure: HFuel
Hydrogen Refuelling | Infrastructure HFuel® – 2010 Hydrogen Fuel infrastructure unit • HFuel 15kg/day, rapid cascade refuelling at 350 bar • Flexible, modular and transportable refuelling unit • Targeted at the urban commercial fleet market • Part funded by TSB ITMITM POWER | Final POWER Results | I
Slide 41: Hydrogen Refuelling | HOST
Hydrogen Refuelling | HOST Hydrogen on Site Trial Trials begin Q1 2011 • Scheduled in signing order • Simple contract • Seeking further partners ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 42: RNS Announcements
RNS Announcements 06/10/10 EPSRC Grant Funding 04/10/10 Vestas Joins HOST 29/09/10 SSE Joins HOST 16/09/10 Ford, Jaguar Land Rover, JM 15/09/10 HFuel Launch/AGM/Open Day Last 2months 15/09/10 Appointment of NXD 13/09/10 Scottish Water Joins HOST 16/08/10 Local Authorities Join HOST 11/08/10 Addition
Slide 43: Hydrogen Refuelling: HFill 2011
Hydrogen Refuelling HFill® – 2011 Home refueller for coupling to embedded renewable energy • Developed in a mature legislative environment • Services for the 700 bar adopted standard • Aligned with a highly distributed model • Collaboration with Next Energy ITMITM POWER | Final POWER Results | Inves
Slide 44: Financial Results 2009/10
Financial Results 2009/10 ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 45: Highlights Year Ended April 2010
Highlights Year Ended 30 April 2010 Financial Highlights Significant progress has not compromised cash burn • Trade show and product launch achieved • £488k under cash forecast • Fiscal reorganisation • R&D tax credits optimised, up £70k from 1st Jan 2010 Year End Cash Balances Actual Budget Varianc
Slide 46: Highlights Year Ended April 2010
Highlights Year Ended 30 April 2010 Fully Integrated Software Process >design > production > inventory control > procurement • Product design , development and assembly • Product managers control the process • Component and resource demand • Inventory Control and Procurement • Financial Control CAD
Slide 47: Grant Funding
Grant Funding Grants To develop global commercial relationships and reduce burn • TSB: HydroGen (Enhanced) £264k • TSB: Refueller £338k • YF: 5Kg Stack £195k • NE: 700bar Home Refueller £60k • TSB CREO £247k • EPSRC £88k Total: £1,192k All Public Sector bodies now facing uncertainty due to the Gover
Slide 48: Outlook
Outlook • Strong Technology Platform • ISO accreditation • Focused on products • CE marking in process • Seeking partners for distribution and field trials • Strong cash position - £17m ITMITM POWER | Final POWER Results | Investor Presentation, Road Show 6th & 730 July 2010 th October 2010
Slide 49: Legal Statement
Legal Statement Neither the information contained in these written materials nor any and competitive uncertainties and contingencies, many of which are beyond accompanying oral statements constitute an offer to sell or a solicitation of the control of the Company. Accordingly there can be no assuran