Slide 1: FY 2018 Results Presentation
FY 2018 Results Presentation redT energy plc (AIM:RED) Neil O’Brien, Executive Chairman Fraser Welham, Chief Financial Officer 1
Slide 2: Executive Summary
Executive Summary ▪ Strategic Review progressing well – ongoing discussions with a number of potential partners ▪ 2.3MWh deployed throughout 2018 across UK, EU, Africa, Asia & Australia ▪ Gen 2 sales led to first, £2.5m revenue contribution by redT business ▪ Gen 3 product launched and manufactured
Slide 3: Strategic Review
Strategic Review ▪ Strategic Review announced on 14th March – targeting one or more strategic partners to support & fund the long term development of the business ▪ Following 9th April announcement, without further funding, business has cash reserves sufficient to fund operations until end-Nov 2019
Slide 4: Market outlook
Market outlook 3TWh Energy Storage Capacity by 2040 $620bn Expected investment by 2040 *BNEF forecasts Nov. 2018 ▪ Low-cost renewables are replacing gas and coal power from the merit order ▪ Drives increasing volatility in the wholesale power market, opening up new opportunities for energy storage 4
Slide 5: redT current projects – a selection
redT current projects – a selection 5
Slide 6: redT Gen 3 machine
redT Gen 3 machine 6
Slide 7: Case study – Anglian Water
Case study – Anglian Water Anglian Water: ▪ Installed 15% renewables (to date) (106GWh) ▪ 30% renewables target by 2020 ▪ redT solution can accelerate decarbonisation at commercial sites allowing up to 3x more solar generation to be installed per site ▪ Largest water company in England and wales (ge
Slide 8: Case Study: Energy Superhub Oxford
Case Study: Energy Superhub Oxford ▪ £41m grid-connected project Consortium partners: integrating 100 EV chargers with hybrid energy storage, heat pumps and AI-based control system ▪ Largest deployment of flow machines in UK & largest hybrid energy storage system to be installed globally. ▪ Hybrid L
Slide 9: Case Study: German Grid Storage
Case Study: German Grid Storage Initial project Further Phase ▪ 8MWh (~200 redT units) hybridised with 32MW Gas ▪ 2nd project identical to initial project + further project turbines expansions ▪ Heavy cycling flow machines (>30% load factor) enable ▪ Total exclusive project portfolio – multiple site
Slide 10: Case Study: Dorset C&I site
Case Study: Dorset C&I site 10
Slide 11: Case Study: Dorset C&I site
Case Study: Dorset C&I site 11
Slide 12: Statkraft finance offer
Statkraft finance offer redT have joined forces with Statkraft, Europe’s largest renewable energy generator, to offer the UK’s first integrated, fully financed, solar + storage corporate PPA solution. ▪ No upfront capex for end-user ▪ 20-25 year PPA 100MWp 60MWh Solar PV roll-out Flow machine Target
Slide 13: Commercial Interest Pipeline
Commercial Interest Pipeline Average Gross1 Weighted1 Expected Deal Stage Conversion Project £45m £27m 60% Development (1,379 units) (835 units) £55m £14m Quoted 26% (4,414 units) (1,178 units) Early stage £1,107m £158m 14% £1,207m £199m 16% 1. The “gross” amounts in the above table are extracted fr
Slide 14: FY2018 Financials
FY2018 Financials 14
Slide 15: Highlights
Highlights ▪ Revenue from continuing operations up 87% to £4.2m (2017: £2.2m) ▪ Trading loss £11.7m (2017: £6.3m loss) ▪ Operating loss from continuing operations £12.2m (2017: loss £7.2m) ▪ Year end free cash £3.3m (31 December 2017: £6.6m) ▪ No borrowings ▪ Profit from legacy Camco operations mini
Slide 16: Income Statement
Income Statement 2018 2017 Movement £m £m £m % Continuing operations: Revenue 4.2 2.2 2.0 87 Cost of sales (2.5) (0.3) (2.2) n/a Gross profit 1.7 1.9 (0.2) (8) Administrative expenses (excl. SBP) (13.4) (8.2) (5.2) (63) Trading loss (11.7) (6.3) (5.4) (84) Share-based payments (SBP) (0.5) (0.9) 0.4
Slide 17: Segmental Analysis
Segmental Analysis redT Camco Group 2018 2017 Movement 2018 2017 Movement 2018 2017 Movement £m £m £m % £m £m £m % £m £m £m % Continuing operations: Revenue 2.5 0.7 1.8 250 1.6 1.5 0.1 9 4.1 2.2 1.9 87 Cost of sales (2.1) (0.3) (1.8) (516) (0.2) - (0.2) n/a (2.3) (0.3) (2.0) n/a Gross profit 0.4 0.4
Slide 18: Cash flow
Cash flow 2018 2017 Movem't £m £m £m Loss for the year (12.5) (7.4) (5.1) Add back: SBP 0.6 1.0 (0.4) depreciation 0.3 0.1 0.2 FX movements 0.1 0.2 (0.1) taxation 0.1 - 0.1 Adjusted EBITDA (11.4) (6.1) (5.3) Movement in: receivables 1.4 (1.8) 3.2 inventory - (0.6) 0.6 payables 0.1 (1.8) 1.9 deferred
Slide 19: Balance sheet
Balance sheet 31 Dec 18 31 Dec 17 Movement £m £m £m Property, plant and equipment 0.5 0.4 0.1 Intangible assets and goodwill 13.5 13.3 0.2 Deferred tax assets - 0.1 (0.1) Non-current assets 14.0 13.8 0.2 Inventory 0.5 0.6 (0.1) Receivables 1.2 2.9 (1.7) Payables (1.5) (1.5) - Deferred income (0.2) (
Slide 20: Summary
Summary ▪ Strong energy storage market outlook – bullish projections from analysts ▪ Gen 3 product launched, 1st machine manufactured and ready for delivery – foundation product for positive margin ▪ Significant commercial developments in year-to-date ▪ Strategic review progressing well – ongoing di
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