Ceres Power Holdings Plc · LSE:CWR
Ceres Power — Ceres Power Hldgs — FY2023 Earnings Presentation
24 slides from Ceres Power's earnings presentation, Apr 15, 2024
Slide 1: Full year results
Ceres Full year results For the 12 months ended 31 December 2023 Ceres Power Holdings pic 15 April 2024
Slide 2: SOFC delivery and SOEC commercial acceleration
SOFC delivery and SOEC commercial acceleration * Bosch ‘power units’ based on Ceres’ technology received European funding of €160m * At Doosan’s 50MW factory in Korea, all machinery and processes completed factory acceptance testing, with installation and commissioning on schedule * Weichai developi
Slide 3: First dual licence for power and green hydrogen
First dual licence for power and green hydrogen * In January, Ceres and Delta Electronics signed a global long-term collaboration agreement for cell and stack production * Agreement includes staged revenues of £43 million to Ceres through technology transfer and manufacturing licence, of which appro
Slide 4: Financial update
Financial update Eric Lakin
Slide 5: Financial overview
Financial overview For the year ended 31 December 2023 Revenue £22.3m 2022: £19.8m! Gross profit £13.6m 2022: £10.7m! Gross margin 61% 2022: 54%! Adjusted EBITDA (£50.3m) 2022: (£45.7m)! 2. Contracted order backlog (does not include future royalty revenue) 5 Ceres Power Holdings plc | Full year resu
Slide 6: Revenue and gross profit
Revenue and gross profit Sector leading gross margins maintained * Top line growth and margins highly influenced by the timing of licence fee revenue recognition Revenue and gross profit 31 Dec 20 (CY) 31 Dec 21 (FY) Revenue 31 Dec 22 (FY) Gross profit —@= Gross margin 31 Dec 23 (FY) 80% 70% 60% 50%
Slide 7: Revenue mix evolution
Revenue mix evolution Revenue mix 7 31Dec 20 (CY) 31.Dec 21 (FY) 31Dec 22 (FY) MEng services mSupply mLicence Ceres Power Holdings pic | Full year results 31 Dec 23 (FY) Licence fee revenue - very high margin (can be recognised up-front or over time) Supply - represents prototype technology (cells a
Slide 8: Investment in R&D
£80m £70m £60m £50m 40m £30m £20m £10m tm Investment in R&D £m Research and development investment increased by 11% to £54.0m (2022: £48.5m), consistent with strategy to drive innovation and technology leadership across solid oxide fuel cells and electrolysers Capital investment in 2023 to further e
Slide 9: Reduced cash outflows in 2023
Reduced cash outflows in 2023 Cash outflow* Ce £m + Reduced cash outflows in line with plan, through disciplined working capital and cash management em + Working capital reduced by £10m in 2023, driven om) largely by reductions in trade receivables (20m) * Total capital investment (capex and capital
Slide 10: Business strategy
Business strategy Phil Caldwell
Slide 11: Acceleration of SOEC built on leadership in SOFC
Acceleration of SOEC built on leadership in SOFC Commercial * Compelling business case across hydrogen, steel and ammonia acceleration * Engaging the full hydrogen value chain to drive demand for Ceres’ technology technology * Gen2 stacks released, offering improvements in performance and cost leade
Slide 12: Platform technology to address significant global markets
Platform technology to address significant global markets Y) FUEL IN RENEWABLE ENERGY IN Future fuels 12 Ceres Power Holdings plc | Full year results cares
Slide 13: Technology advantage
Technology advantage ¢ Class-leading robustne and low temperature performance due to steel mounted design Low-cost ceramics Fundamentally lower a. Ferritic steel material costs and reduced substrate and volatility in pricing interconnect Low operating temperature 500 to 600C Ceria electrolyte 13 Cer
Slide 14: Ceres delivers technology and manufacturability
Ceres delivers technology and manufacturability To enable its partners to build SOFC and SOEC capability at scale Mature stack design | Cell and stack manufacturing 1MW demonstrator system Stacks have been in low volume Manufacturing plant in South Korea is First SOEC demonstration systems has produ
Slide 15: Partners scaling globally with support from Ceres
Partners scaling globally with support from Ceres 15 Ceres Power Holdings plc | Full year results
Slide 16: Modular technology scales for various applications
Modular technology scales for various applications DOOSAN scaling to G0OkW 10-60kW BOSCH scaling to 1OOkW WEICHAI — - scaling to IMW y | | RSD) * GTB | SORE AtEm 30-75kW Zall Cares
Slide 17: Completion of Doosan's factory in South Korea
Completion of Doosan’s factory in South Korea Watch the timelapse of the Doosan SOMW factory build on our website here. https://www.ceres.tech/media/doosan-factory-construction, 17 Ceres Power Holdings plc | Full year results
Slide 18: Delta takes dual licence for power and hydrogen
Delta takes dual licence for power and hydrogen + Endorsement of investment into SOEC technology with new partner * Strong capability in one of the world’s leading centres for high volume technology manufacturing * Targeting customers worldwide, across chemicals, energy, transportation, steel and mo
Slide 19: Shell deployment to support compelling use for industry
Shell deployment to support compelling use for industry Efficiency Green hydrogen production Per year yerogen P IMT Cost savings Electrolyser capacity 4.7GW - Renewables capacity 8.9GW $6.8bn Electricity costs ($55/MWh) Electric $2.0bn $0.75bn 19 Ceres Power Holdings plc | Full year results Assumpti
Slide 20: AtkinsRéalis collaboration for GW-scale hydrogen design
AtkinsRéalis collaboration for GW-scale hydrogen design * Front-end engineering design for a commercial multi-megawatt modularised hydrogen production system based on Ceres’ technology + Aims to create the optimum system architecture for a 1OOMW+ electrolyser system, as a building block for gigawatt
Slide 21: Licence combined with process development experience
Licence combined with process development experience Enables the deployment of state-of-the-art SOEC modules SOEC factory co a — 21 Ceres Power Holdings plc | Full year results cares
Slide 22: Outlook and focus for the year ahead
Outlook and focus for the year ahead ¢« Bosch, Doosan and now Delta progressing towards scaled technology production * Continue to grow our relationship with Weichai in China *« Demonstrator programmes for green hydrogen on track with Shell, and with Bosch and Linde Engineering * Significant new lic
Slide 23: Questions
Questions Investor Relations investors@cerespower.com Ceres Power Holdings pic Viking House, Foundry Lane, Horsham RH13 5PX T: +44 (0)1403 273463 | E: info@cerespower.com Ceres
Slide 24: Appendix: Reconciliation of prior year audit adjustments
Appendix: Reconciliation of prior year audit adjustments * A number of prior period corrections were identified during the audit, the main ones relating to the historical 24 timing and treatment of revenue recognition and foreign exchange impact for long term contracts, the dilapidation provision an