Gelion (LSE:GELN) — Investor Presentation

0:01 Good morning, and welcome to the GELN PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, can be submitted anytime via the Q and A tab situated on the right hand corner of your screen. Just click Q and A, scroll to the bottom, type your question and press end. Due to the number of attendees on today's meeting, the company may not be in a position, to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. Also thank you to all those investors for pre submitting questions. Some of these topics will be covered off during the presentations and we'll pick up at

0:31 the end on specific Q and A. Before we begin I'd now like to submit a following poll. I'd now like to hand you over to Doctor Steve Mehon, Non Executive Chairman. Good morning. Good morning to you and good evening to those who are joining us from Australia. We have a presentation team here. We're really reflecting on primarily on the annual results but we reflect on the last year because it's approximately just over twelve months since we listed on AIM. And at that time we really came to market with a suite of battery technologies addressing both the high energy market and the high power market both storage for utility solar but also for mobility devices. And we'll reflect on that today and talk about the developments in those spaces, but as a board we remain as optimistic as we were on the day of our IPO about the prospects for our suite of technologies.

1:26 One of the other elements we stressed when we came to market was around trust and we were extremely respectful of the trust that the shareholders put in the company and the board. And part of that has been and this year the board has been incredibly engaged hands on in helping the company make the transition from laboratory to commerciality and part of that change is putting in the right management and we set ourselves a challenge of bringing or finding a fairly rare person, someone who has experience as a CEO of driving company growth and driving liquidity and shareholder returns, but also having deep battery market expertise and there are very few of those people around and we are fortunate that we have found one and John Wood is a very recently appointed CEO and I'll pass to John shortly.

2:18 But John is now our full time permanent CEO. It's taken us a little while to find the right person, but it's certainly worth waiting because it's a critical part of the success of the company to have the right leadership in place. So it's a great pleasure to welcome John to the team. And I'll hand over to John to take the lead on the presentation. Thanks, Steve. Thanks very much. You know, it's a real honor to be able to lead GELION and to steward your investment in GELION. As Steve says, my history has been all about taking the

2:55 great technologies that are developed by teams and ensuring those technologies are adopted worldwide. You'll come to know me as an entrepreneur in the spirit of Peter Field's book Zero to One. I advise reading the book to understand it. But basically when you look around the world today, it's a very small place. And if you want to compete in the innovation and technology space, you find quite quickly that you need to be one of the one, two or three wing technologies that requires a particular approach to commercialisation. In the course of the presentation today, I'm going to share with you some of the things that you might expect from us in July.

3:41 This is a real opportunity for me as well as my work in launching technologies globally. For the last fifteen years, I've been involved in sustainability and particularly in energy storage. So as part of the energy storage community, I ended when it was quite early, in the early stages, have shared the journey to this point and have many friends around the world across that community. GELION is a particular challenge and opportunity because we have two remarkable technologies on both sides of the community. We'll talk about that in the course of today. It's a remarkable opportunity for me to work with Thomas Mushmeier and the team.

4:28 And I'll talk later about the specifics of what we want to do with your investments. I'll pass now to Thomas to introduce. Yeah. So thank you very much for your support as investors and for the trust you put in the company and the team. And we will do our very best to deliver, and we're very confident of doing that if we at the next time. I'll introduce myself. Oh, sorry. Yeah.

4:54 Hi, everyone. Thank you for your investment. Good morning and good evening to investors in The UK and Australia. My name is Amit Gupta. I'm the CFO. I've been with the business for fifteen months, and so we have achieved quite a bit in the last year and very exciting times to come. Thank you. So, as you know, the company was set up for to help support the green energy revolution and to do that with innovative storage technologies. And in terms of us being part of an ESG portfolio, we align very, very well with the UN sustainability development goals, as you can see here. So we really play strongly into a whole range of different areas of incredible importance given the times we are in. Next slide please. In terms of key progress since the IPO, we have now established a senior team that we are very, very confident of. The Board is working together very well, as Steve Mahn, our Chairman, already alluded to.

5:55 And we have now got a sector expert CEO with huge international reach, both in terms of off take, in terms of manufacturing capabilities for our technologies. So we're really looking forward to his leadership and getting us to that next level. The other thing, amongst the other things we've done is we've proven that the cells can be made not just in the lab by PhD students or by highly skilled individuals, but in fact they can be made in the commercial environment. And we've transitioned out of the lab into a pilot manufacturing line that is in a commercial lattice factory in Sydney that was opened and it was commissioned ahead of schedule. And it was creating such excitement that the two federal ministers of relevance, the minister for energy and the minister for industry, came personally to open this pilot plant manufacturing line. So we are very well visible within the ecosystem.

7:00 And those cells are assembled by just the normal staff that is working in the factory and making lead acid batteries. The batteries themselves are going to be used in the Asiana Energia trial that we have. It's one of the largest energy companies in renewables around the world, and we're looking forward to those tests, those trials, the undoubtedly fantastic results, and to be able to share that with you in the coming year. The last point is that we've had substantial acceleration in the additives business. We've made a number of breakthroughs and, are able to go significantly faster than we thought we would be into the development of a lithium silicon sulfur battery technology, and we'll talk more about that in detail, in the following slides.

7:59 In terms of financial highlights, I guess the two key points here are that we have no debt, and the other one is that we have, had, as of the end of June, this year, £17,000,000 in the the bank still as cash. So we feel we are very well resourced to execute on the strategy that we will be introducing to you in the next few slides.

8:25 One of the other things, not just the senior team, but the team as a whole has grown, and we've been able to attract just fantastic talent. Having done a little bit of a poll around the place, everybody is motivated by impact. Of course, you need to eat and have a salary, but really people are coming to work because of impact, to make a difference, trying to really interact with that big challenge that we all face and push out those new technologies to help make a difference. So it's a fantastic team, highly skilled individuals, very diverse, many nationalities, and hugely motivated. And we're all very proud to be associated with such a wonderful team. And now over to the business. Thanks very much, Thomas. Next up here. The reason that I was convinced to join GELION really is the opportunity to work with this exceptional man, Thomas, and with what I've found already, some truly amazing employees that have assembled inside of GELION.

9:32 Thomas is a modest man. He's regarded as one of the top 15 chemists in the world and with a speciality in catalysis, which are the technologies that we are working to make these batteries happen. On my own side, as I said, I worked over the last fifteen years in sustainability. In my work in sustainability, I worked for many years on the side of the business that was lead acid, and we'll talk about relevance to the lead acid industry of our zinc bromide cells, particularly as we proceed. Also, in the last sort of two and a half years, put just my own my family's money back into sustainability and build an investment portfolio that goes across sustainability technologies with an emphasis in energy storage.

10:26 The reason I raise that is that gave me an exposure across participation across all of the activities or many of the activities, leading activities that are going on in energy storage across the world. Against that background, the opportunity to work with Thomas and the team on these two core technologies is something that I treasure and I understand very clearly. And I'm going to introduce it to you in that context. In many ways what I've done to date has been training to step into this role. You recognise pretty quickly down the bottom there's a number 50 megawatts of twenty ten and seventeen gigawatts in 2020. This is not to scale, but I'll explain that to you.

11:14 My engagement in energy storage started in 2008 And that's really when the industry took off of energy storage supporting renewables growth. And what happened back then is we had the global financial crisis and under the Obama administration there was the ARRA program, the American Reconstruction Act. The Department of Energy, when that happened, under the stewardship of a remarkable man, Doctor Emory Zhouk actually allocated £200,000,000 to energy storage that was supplemented by another £300,000,000 from private capital to set up 16 large energy storage projects in The US.

12:00 I was fortunate enough to be leading a team at the time that provided the cells for two of 16 projects that grounded me in the growth of the opportunity. If this slide was built for you, what you would see is the remarkable growth that happened between 2020 and 2020 to the 70 gigawatts that were out there in that time. And for me, as a participant in the industry, that was a staggering period of growth and innovation. What want to draw everyone's attention to is what happens between 2020 and 2030. We go from 17 gigawatts to three fifty eight gigawatts. These are actually numbers I shared at World Energy Storage Day. I gave the stationary energy storage presentation at World Energy Storage Day this year. And the relevant factor is that three fifty eight gigawatts is not enough. So in the presentation I gave at World Energy Storage Day we talked about what was happening in wind energy, we talked about what's happening in solar energy and we talked about what was needed to buffer it all.

13:00 That is a staggering rate of growth. We're going to need energy storage to do all we can because even at three fifty eight gigawatts of energy storage we're still going to be curtailing the amount of wind and solar energy that is being generated. That's the background that we're working against. Those effectively an infinite market for storage If you can provide it at the right cost with the right performance, you've got to sell it. You've to sell it. So looking under the covers then to understand where that energy storage is coming from. Now there are two main contributors to energy storage today and they are the lead acid industry and the lithium industry. They're both today roughly the same size.

13:47 Lead acid is actually slightly bigger in gigawatt hour turns. Lithium is slightly bigger in dollar terms. Between now and 2030, lithium will be an industry that is three times larger, but the lead acid industry is still growing. Now, I don't want to belittle other initiatives that are starting as well, like flow batteries and other alternate chemistries because there are chemistries like sodium ion as well that are making a strong contribution. But basically today the bulk of the energy storage in the world is coming from these two industries. Now, when you look at the picture in front of you, I use this picture for a particular reason. On the left is the lead acid industry. And it's an industry where there's people and robotics, but basically it's a bulk manufacturing type industry, large roles that have led lots of assets moving through the plant, high automation, but not the same sort of manufacturing as we have on the right, which is the lithium manufacturing, which is much more of a clean room, dry room type approach, more like silicon fab manufacturing when you compare it to the lead acid world. So I just put this up to context the world that we are working within.

15:05 To context it a little further, this slide shows you on the left at the top is a lead acid battery. At the bottom on the left, well, that's a gel iron zinc bromide battery. And you can see that the two basically look the same. On the right, you have a standard lithium ion cell lithium manganese cobalt, nickel cobalt type cell. And down the bottom you have, this is a representative of what our intended pouch format will be for lithium silicon sulphur cells that would be using our additive technology. So you can see that we've got a class of manufacturer and a class of cell that fits into both sides of our business.

15:58 Talking first about the GELION zinc bromide batteries. And these cells that you're looking at now, first, what I really wanted to do here was to acknowledge that we to have this opportunity to build on what's been achieved by the leaders before me in GELION. It's remarkable that GELION has progressed to where these cells were made this year actually in a lead acid facility. They're made using different processes, but these were made at our facility by our partner, Batter Energy, in Australia. And you can see they're representing production cells, is a huge achievement.

16:39 Okay, looking at the lead acid market then, the market today is large and there are three main segments: SLI, siding, lighting, ignition, stationary, motive.

16:51 We see opportunity for GELION to be part of that ecosystem, to build upon the strength of that ecosystem. We have certain advantages to build on. Firstly, our format is very lead acid like. We offer a very safe chemistry, fire resistant. Thomas has tested the batteries by putting them on hot plates and taking them to 600 degrees C. We are very high and low temperature tolerant without HVAC. Very relevant. One of the projects I mentioned back at the start when the energy storage industry was getting underway, one of those projects we were awarded in The US by the team I led at the time, Sandia Laboratories, did a study on the efficiency of system.

17:37 We were 92% DC to DC efficient, 87% AC to AC efficient. But when efficiency was adjusted for the effect of air conditioning, just around 50% efficiency. So the ability to handle high temperatures without air conditioning in an LCOE, levelised cost of energy, term is very important for energy storage. We have great cycle performance. We can use 100% of linear discharge in our cells typically in a lead acid world, unless it's a specific deep cycle cell, more a partial set of charge of 20 to 40% is being used. We can use 100% depth of discharge without accelerated degradation.

18:27 And a very important feature is that we can remain uncharged without accelerated degradation. So we can actually sit empty for months on end. Now I'm going to introduce to you just a slight pivot that I see GELION taking, and I'm working with my team very hard on this at the moment, one of the strategies we were applying was to enter first the large scale energy storage market. Now this is not residing from getting presence at GELION in the large scale energy storage market. But what has happened, particularly in the last year, is that the hurdles in that market have increased as the competition has been the focused competition area in the sector. What does that mean?

19:17 Customers are expecting ten to twenty year ten, fifteen, twenty year performance and they're expecting that the technologies that they deploy have a long history of operation and third party independent testing. It takes a long time to enter that market. So it's a very slight refocus here that I'm looking at with my team, analysing the moment. What we're doing in our match to market, there's a lot of sectors in the lead acid market where batteries are replaced much more frequently, maybe one year, two years or three years. So to enter those markets, we can enter those markets and support the ecosystem much earlier because we don't have to do such sustained testing.

20:09 Also, as I said, the large scale energy storage market is the one that's under the most competitive pressure and you get the lowest

20:16 payment per kilowatt hour, whereas some of the other markets are much more lucrative. So one of the things that one of the approaches that we're taking or going to be taking forward with GELION is to do very close match to market in the entrance of our technology to make sure that we're successful. This once again is following one of Peter Fields advice which is often when you're entering the large in a small sector where you can develop your strength from. So I just wanted to introduce that concept to you in this sector where we're But those small sectors are still billion dollar markets. The small sectors are billion dollar markets and they're very large markets.

21:01 And by entering those sectors we have opportunity to enter earlier, taking less time in our testing. And then we're still making ourselves more robust for the large scale market. So you'll see from us we'll continue to update you on this as we progress. One of the things I do like to try to attain as a CEO early is our transparency from my team, through my board, out to my shareholders all the way. So one of the things that I'll try to achieve very quickly with you is to be clarified in this so that you understand the story all the way through and you understand how we're progressing.

21:45 This is the GELION cell. Basically what you would see when you see inside this cell is you'll see all the same parts that are in a lead acid cell. It's just there's zinc and there's bromide cake and different materials. But basically the construction of the cell is very similar with a lead acid cell. And this is also very important to understand. So when you context with this slide with what I gave you earlier about the growth in the battery industry, this slide talks to what's happening to the metals prices as the industry is developing. And the good news is zinc and bromide, they're those two lines right down the bottom of this slide. So we have an opportunity here as the industry grows to make use of the fact that there's going to be pressure on metal supply and that means cost increases.

22:37 So what are we trying to do? We're trying to maximise our use of those materials to increase our cost competitiveness while targeting the sectors where we can make the major impact and get the major gain. Thomas, you would Yeah, sure. So this is a picture of those two ministers I mentioned, and that's at the opening of our pilot line in Western Sydney. And I'd like to point out that why is it so interesting or sensible to go and partner with lead acid companies, and that is because more than 70% of all our manufacturing processes are very much standard lead acid manufacturing process. The rest of it are unique to us and largely connected to the different chemicals we're using, not so much that we have, you know, really sophisticated and different and difficult manufacturing steps as such. It's just somewhat different ones, but it allows us to retrofit and go into existing manufacturing capability. And we're really pleased that Battery Energy is our partner in, in in this process.

23:46 All right. The Axianna Energy project, and this is a very important project for us just in terms of presenting our ability to deliver a system. You can see here this is a 14 kilowatt hour system that we model of the system that we will of the 120 kilowatt hour system that we will deliver to Axiona in Spain later this year. And we're actually using the cells here that were produced at the site that we're working with battery energy. And those cells for the 120 kilowatt hour side are being produced now at the facility to be ready. So we'll be in phase two. This phase one is testing and qualifying the operation of the system.

24:41 Phase two will see the deployment of the system up to Spain, an opportunity for us to demonstrate, learn more about the production of our sorry, the operation of our batteries in the field. Now, I want to be careful here to explain to you this is a first stage of the product along with our match to market work and the feedback that we're getting from the field operation here and the understanding of the areas that we want to emphasise in the battery performance, we'll be following a technology plan through the course of this year in improving the cell, improving the cost dynamics towards having a commercially releasable cell as we proceed.

25:30 Alright, so the outlook this year. What can you expect from us in July around zinc bromide? You can expect to start to get some feedback from the infield and laboratory testing of our zinc bromide systems. I will share with you in updates as we proceed with match to market and prioritising the most compelling propositions. And we'll have manufacturing process development. This is all twenty twenty three is a super important year for us in terms of preparation for commercialisation and scaling. Over to lithium, silicon, sulphur. Now, how

26:14 do I explain this to you? Well, I was really pleasantly surprised when I got started to get and proceed and work with the remarkable team at GELION to understand where we sit. I'm going to go a little bit off script here and go all sort of visual with you so it's something I do from time to time but let me explain. If I go to the next slide and we'll come back to this one in a moment. Okay. The electric vehicles that you've got in the market today, lithium world, is in that left bar sort of starting to go a little bit to the one in the middle. So what this bar shows is the energy density of typical, you know, nickel, manganese, cobalt based lithium ion cells.

27:19 Everybody wants to increase that. So way over here on the right, we would be looking at is the effort to go to solid state type living cells. The work that GELION is doing on sulphur cathodes is relevant in the solid state cell context, but I'm going to talk to you today particularly to introduce you to a slightly different context. So the pressure is on the industry in three areas: performance, cost and safety. And the work that GELION is doing on additives is relevant in all three of those things. So we want to get performance up here.

28:06 What does performance up here mean? Well, if you get the performance up here and you increase the gravimetric, that's, you know, how much energy do you get for per unit weight. If you want to get performance up here on gravimetric, then

28:23 one of the approaches has been the solar safety. But what also happened in the industry is the industry made progress on doing high silicon anode technologies. Now, GELION at the time of IPO was looking at being in that high silicon anode work, but that high silicon anode work is actually quite competitive. And so from a strategic point of view, the opportunity for GELION is actually to work with that industry. But the high silicon anode companies, what they achieved is that they got the energy density of the it used to be that the cathode was sort of leading on energy density and then the high silicon anode guys pushed their energy density on the anode up. Now, the actual energy density of the cell is largely controlled by which is the less of the anode and the cathode, controlled by which is less.

29:22 So the industry has progressed much more on the energy density of the anode. GELION, in its work in the sulphur cathode additives,

29:39 we can't use all of the energy density advances that have been chained on the silicon anode alone today. But GELION offers a path to utilise that advance by providing a sulphur cathode that

29:58 has the requisite energy density to match up. Now there's also, most importantly, some really tight analogy in the way this has been achieved that means that it complements the work that was done on high silicon anodes very closely. Now here we a small sort of announcement earlier this week, which was the foundation announcement, just so we could start to talk to you about this. But

30:28 in stewarding your investment, it's important for us at this point to balance what we're doing on protecting IP with what we're doing in terms of commercialisation to get market presence, with what we're doing in terms of giving our team the free air and scope to actually achieve what they need to or what they are achieving. This is science. This is research. So,

30:56 you know, research in many senses is fungible. Some things can't be controlled in research sense. We have some of the most remarkable scientists that are making breakthroughs in this area and getting IP.

31:12 And we need to give them the opportunity and the environment where they can be most effective. So what does that mean to you as shareholders and particularly around messaging? Means that I'm going to keep you as informed as I can as we advance. And it means that I'm going to try explaining the story to you so you understand it, so that when we update you, it's relevant to you. So our announcement this week was a very simple one. Said, oh, well, we've got, you know, 300 cycles and we're still 80% on a half sell.'

31:40 That's a fairly bland announcement to a shareholder. But what it means is that that's a milestone in our progression towards later milestones. So the next milestone our team will be working on towards a full self result. Now there are signs to be done and there's still unknowns to be managed as the team does that, but we're very confident we're on a tight pass. Can I get a pass to Thomas at this point? Sure. Might explain this. Yeah. So so so just

32:11 to maybe recap. So so in terms of the existing, lithium ion batteries in your phone, that performance is limited by the graphite in terms of energy density, so the NMC could do more. Putting lots of silicon into the graphite means that now the anode can do more and is limited by the cathode, by the NMC. And, what we have been able to do is put in a sulfur cathode that now is able to liberate the full capability of the silicon anode. So we are close to double, more than double depending on how you calculate the energy density. And, the beautiful thing is we don't need lithium metal and the solid state approach. It's simply lithium ion using existing and manufacturing capabilities.

32:59 And we don't get dendrites, and we don't catch fire. Sulfur doesn't catch fire by oxidizing carbon. NMC can do that.

33:10 And NMC is about 60% of the cost of a current lithium ion battery. Sulfur is a lot cheaper. So we are safer, we are cheaper, and we have around double the energy density once we get the full cell built. So that's basically the story. And one of the things that still needs to be really fine tuned and optimized in these systems is the electrolyte, the thing that is enabling the two electrodes to talk to one another. And we have made very good progress into starting to find electrolytes that can do that. Traditionally, a sulfur compatible electrolyte will destroy the lithium silicon graphite side of of the battery, will destroy the anode. We are starting to show that that's not necessarily gonna have to happen, and we've got some electrolytes that are that are looking very promising and and marrying the two technologies, the lithium silicon anode and the sulfur cathode. And we are confident that we will be able to update you with more and more progress, on this. Thank you.

34:20 I mean, what can we say, guys? We're very excited about this. If you had one arrow to shoot at a bull's eye in the industry, this is what we would do. This is very, very exciting technology. It's the goal that everybody's trying to attain. Increase the energy density of a lithium cell means that you can increase the range of electric vehicle. It means that you can move towards use of electric flight. Drones can go twice as far. Safer. Well, it's higher energy density and safer and then a lower cost. So we don't want to overpromise, but we want to let you know here, you know, we've got a tugger by the tail. We're going to be doing our utmost to work with the talent that we have in our team.

35:16 And I know personally from launching technologies around the world, there comes a time when you look across the table and you see the light in the eyes of the development team and you know that this is something really exciting. It leverages our capabilities very well. But we do have a lot of work to do. It is science, is research. Watch for the announcements as we progress. It is a strongly contested part of the market, so it really is going to take

35:43 research and mastery around the commercialisation. But success will mean that we can replace more or less the majority of the cathodes in lithium ion batteries around the world, and that is close to an infinite market for So so so success is extremely rewarding situation in this. Cool. I'll walk you guys through the financial slides. So whilst you have heard Thomas and John talk about what we have achieved in the last year, I think it's it's a great progress from the company's perspective. We have done that, whilst managing our cash cash balance quite closely. The results the actual results are we have outperformed on the analyst estimates, which was basically fin cap equity research report on all measures, whether it's income, adjusted EBITDA loss, or cash available at at the end of the year, which is thirty fifth June twenty twenty two. So, whilst we are making very, very good progress, significant progress on both the technologies, we have continued to manage our cash very closely, reacting to what what's happening in the global marketplace as well.

36:52 This gives a little bit more further breakdown of the p and l. Obviously, the costs have increased since f y twenty one, reflect reflecting kind of your public company now, increase in the senior team, the set setting up the senior team to deliver results on both the technologies. I think as flagged during the interim, results, there was a one off listing and other associated cost of £4,700,000. $3.83900000 of that is the noncash share based payment expense, and the remainder is kind of the listing cost, with brokers and advisers. The message is quite simple. I think a bit of repetition there. Strong strong balance sheet, a lot of cash still available to pursue all the opportunities that we have in front of ourselves, and no debt on the balance sheet. So, kind of a really, really strong position where we are at today.

37:46 A little bit further information on the cash flow, so I'll not repeat this, but just gives a further, breakdown on how the cash flow looks like. I'll pass it on back to John to kind of conclude the presentation for us. Alright. So we've started to explain to you the business. One of the pieces of feedback I've had from investors already is they would like to have more messaging, more understanding of our business. The way I'd like to achieve that with you is updates like this that talk about our business. So ideally quarterly updates at least, so that you understand as completely I would in an ideal world, the team, the board, the shareholders all understand the full picture of what we're working towards here.

38:37 So progressive updates supplemented by announcements that you will understand. So if you understand the baseline and you understand what we're trying to do with our business, you've got to understand each time we come out with one of these announcements to tell you how we've achieved milestones that progress the goals that we've shared with you. So 'twenty one, 'twenty two, IPO, the establishment of the manufacturing facility for our first cells, and the proof point that these cells can be made in an industrial type context. This year, preparations for commercialisation, all of the real detail that we need to do to build you a successful business and to successfully commercialise the technologies that we're stewarding. So there is no way today to not be world's best.

39:30 You must be world's best and there is a lot of discipline and a lot of hard work to attain that and we will be doing our very best to follow all the processes that we need to achieve that for you. That will set us up then to the progression of the commercialisation. Two different battery technologies, two very different commercialisation progress. So you will see differences about how we do that. The zinc bromide, much more the whole process is in our control. Lithium silicon sulphur is going into the most competitive part, area of the industry, energy storage industry, where the most investment is being made around the world today and it's right in the middle of that mainstream.

40:21 So the approaches, the strategic approaches, the tactical approaches on the commercialisation are going to be very different on these two businesses and the messaging that we share with you and the approach to that will be very different as we proceed. Buckle in on that. We're going to do our very best to explain to you and keep that understanding as we progress. Wow, great team, great scientists. We are today a guppy in a really big industry. We need to gather strength quickly, given our ambitious goals, and we'll be trying to secure paths to do that.

41:07 But I think we're well positioned and we have some really great ingredients to work with in this dynamic market. Thank you. I'd be happy to take questions. Fantastic. Thank you very much indeed for your presentation. Ladies and gentlemen, do please continue to submit your questions using the Q and A tab situated on the right hand corner of your screen but just while the team take a few moments to review those questions already I'd like to remind you the recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. We have received a number of questions both pre submitted and throughout today's presentation If I may, with the first one, it reads, how important is the ACCIONA trial for you? ACCIONA trial is important to us. It, you know, just like the establishment of the manufacturer of industrial cells that battery energy was a proof point and a milestone attained by the company to show these things can be made in a factory, Axiona is an important trial for us in showing that we can make a system utilising the cells.

42:19 Now, Axiona trial then also creates a or builds on a relationship. What I will say is that it complements what we're doing in match to market in that while the particular business model, it's a trial and it's exploration of the technology as opposed to being get this right and we're going to do 1,000,000 of these systems type trial. It provides a foundation for us then to combine with our match to market work and to take forward and to aim at applications that we can expand out commercially. Also informing our cell development so that we can do what's necessary in our cell to get cost reduction the important areas to get the maximum out of ourselves. So it's a progressive step, one more progressive step for the company.

43:17 Fantastic. Thank you very much indeed. Next one we've got here, what are the main challenges you see to scaling the business? Well, that's fairly obvious. Think we are a guppy and we've got two great assets. So the tactics that we're going to apply on both sides are going to be different. So we're be going drinking out of a fire hydrant at the start, quite simply, to make sure that we harness the best of both these technologies while keeping things tight and not having distraction across the business. We've got a lot to do. There's a lot to do on the science, the technology, the product and there's a lot to do on commercialisation and partner development.

44:08 So yeah, lots of hard work in there, but know But also I guess nothing that wouldn't be expected at this stage of of technology development. So so so in that sense, we are starting with a really with a really good starting point on on on two different technologies that are reasonably well advanced and for which we have great hope to go, you know, all the way. And all the challenges are challenges we would expect in this kind of space and there's nothing unique about that. Fantastic. Thank you very much. Next one we have here is when can shareholders expect to be getting some returns on their investment, especially if their investment was part of the IPO? So return on investment can come a number of ways. I guess I'll answer the question first by saying the greatest way we can get shareholders in return on their investment is by stewarding the assets and the team that they've invested in to greatest purpose to make real commercial progress, to make real maximum realisation of those technologies. Now, how that then converts to shareholder return, it can convert in time to shareholder return in terms of participation in the income generated by the company. It can also convert to shareholder returns in terms of share price or inorganic things that happen as we progress.

45:37 There are two areas that I want to concentrate on shareholder return. So I absolutely respect that that's what the purpose of being a shareholder is. The first one is I'm going to focus with the team and my board, we'll focus on evolving the asset and stewarding the asset. The second thing is we'll try to get more visibility to the progression that's being made with those assets. Now that reflects in two things. One is that, as I said earlier, we are a guppy in a big pond at the moment and yet we have technologies that in their own context are super important for energy storage. So to realise those assets, we have to get visibility to GELION and stature for GELION quickly.

46:25 That calls on marketing and messaging to achieve that. You you can say a cross effect of that is that it also means that people across the stock market should become more aware of what they're doing as we progress that. So there's an aligned objective that for the commercial success and the stewarding of the technology and at the team's creative effort, we need to say more about what we're doing. We need to get people understanding what we're doing. So that will be part of our goal going forward as well. That's great. Thank you, John. Where's the sales focus now, I. E. Which market segments both in terms of client and geography? I am going to beg on that one that I have joined recently, so I'm going to use that excuse again, but in this case I have.

47:11 And when I joined one of my first the team if any of the team in July are listening in, they know this because they're busier. This has been the focus since I started. What I'm sort of pivoting slightly there and what I would like to do is to say to shareholders, the next update I'm going to give you a whole lot more clarity on the specifics of the strategy in terms of our match to market and where we want to go. Not residing from anything that was said in the past, but using approaches that can get us there in the end. In the broadest context, on the zinc bromide side, the goal is to complement what the guys are doing on lead acid. So, you know, if we were super successful on the zinc bromide, what we would do is to work in partnership with the lead acid ecosystem to actually provide products that extend upon what they're doing today and build out the future with them. So obviously there's an art in that. And so we're analysing which markets we could bring the most value to.

48:26 On the lithium silicon sulphur side, it's the balance of getting the prestige and presence and reputation for our work and aligning that with some very powerful players in the industry in the right way that leads to a commercial advantage to all of the stakeholders in July. That's what we'll be doing. Great, thank you. When will the company be cash positive? Cash positive is going to come out of the function of what I just explained in the previous answer. And I'm sorry, I'm not really trying to be direct here and not trying to duck.

49:14 If you look at those two things, you would understand two different commercial progressions. And this is through the course of this year you'll see us as a board wrestling with this from a strategic standpoint to come back to you and inform you as shareholders. There are many different ways that we could capitalise on both sides of the technology in our business. The different ways that we capitalise on those technologies lead to different results for shareholders and also have different cash impacts. Now, the work that I'll be doing in the first three months of my tenure will be towards clarifying that so that I can inform the board and we can make strategic considerations ourselves and to make the most effective decisions.

50:08 The next three months will really be executing that. So you as shareholders, you know, what I said with the transparency I'm trying to get, basically we'll updating you progressively as we go along. And that question about when will we be cash positive, that's one that we'll have to share with you as we progress. It would be inappropriate for me to try and make a projection today because it would constrain the strategic options that the board and the company would have to achieve the best result for the assets that we're stewarding for you. Maybe I'll add to that, John, is technology, both companies, you can get unpleasant and pleasant surprises and we've had a pleasant surprise.

51:01 Lithium silicon sulphide was something at IPO we thought was three to five years out and within a year we've made, that progress. So you have to be dynamic and look at where's the best opportunity to deploy the company's resources and this is exactly what John's saying. Give him three months to understand how we best deploy our resources and and you know it would be for us we think we've actually got a you know we've accelerated one of the most exciting technologies that we see in the battery space so it's incumbent on us to capture that value for our shareholders benefit. And I think, you know, John will come back to the board as he said and and advise us on what he thinks is the right way to maximize shareholder value here. So I I wholeheartedly agree with what you said, John. Sorry for ducking to that exhibit.

51:48 Thank you guys. Next question that we've covered off will the marketing process improve with more frequent press releases and publicity generally which I think you've covered off pretty much in the last two questions. The next question we've got here, again, you have touched on the share price is more than half since IPO. Trading liquidity in the shares is very low, often under 5,000 shares per day. The company has issued only a handful of RNS announcements since listing. It would appear to be a minimal effort to engage with investors both new and existing. Is that because there's nothing worthwhile to say or will investor relations efforts pick up when the company needs to raise money, from the market? Again, I know you've touched on some of these points. That may be unfair to John because he's only been here a week and that refers to really the last year. I think our focus has really been ensuring that we have the right technology, that we're making the right developments and we've got the right team in place. We absolutely recognise we want to be better at the investor relations and comms and I think what John has repeatedly said today is that we will be better.

52:45 We will update the market more frequently and so you'll be better informed. What we hope is that gives people more reasons to buy because we know silence tends to be interpreted negatively. It shouldn't be in this case because what's been happening is we've been focused on getting the technology development but we recognize it and we will improve on that topic. Thank you very much indeed. Next question here, one probably for Amit. What is the current cash position? How much cash runway does the company have until further fundraising is required? Yeah. So the cash position at June 30 was 17,000,000. We have around £15,000,000 still as of November 30. We are very well capitalized, as I mentioned earlier. However, aligning with John's messages, we are working on both the technologies. We have to identify what the right priorities are for the business, and we'll come back come back to all of you in terms of when we have an update on, what the cash balance will look like in the near future. Yeah. I mean, we're well funded. This is a, you know, a good place to be in an uncertain market is that we have cash through '23 and into '24.

53:54 The only time we're gonna raise capital really is if if there's a good reason to do so, if it's going to create shareholder value. So at the moment we don't need capital, we're very well funded but if there's a very good reason that we can enhance shareholder value then we'll look at it and this is back to John's point again is once he's had a chance to review the right commercialization path, we'll see what that path means. But really, the message to us is we do not need to go and raise capital at the moment and we're fortunate in that we're very well financed. And you have to reflect that in terms of what's happening globally as well. COVID, Ukraine war, inflation across the world, hard to find employees, you have to pay more to employees to get them to join the businesses, but we have managed the business really well in terms of where we are at from a cash flow perspective.

54:41 We are under what we expected our cost to be. So I think what I'm trying to align here is, pass the messages. We are we are very, very closely monitoring our cash balance and cash use. Before I just say so, in terms of the board, you know, and the talent on the board, we got Joyceann Morton here, and she has been, very, very effective in steering us, towards not overspending, conserving cash, being very, very diligent, treating every dollar as if it's very much our own dollar, and, and that has that has been reflected really in the strong cash position we have here. So I'd like to thank George for that. Joycelyn is chair of our audit committee for people who haven't met Joycelyn before. Fantastic, thank you. I know we are coming up towards the hour and we do want to get a few closing comments from you, John.

55:28 Perhaps we've got time for one more question if I may. The question reads, when can we expect the commercial production sales of the Endure battery to commence? Well, that's a very good question and please let me answer that one this way. With the work that we're doing on match to market, my approach can be summarised as don't shoot till you see the whites of their eyes, meaning that it's important that I'm not a loss I don't want to do loss leader type manufacturing approaches. I don't want to sometimes you will take small losses or take concessions on the basis that you take a product to market, But I don't want to be using lots of shareholder capital by going to market with generations of the sell that might be too early or going to market into market segments that I haven't properly qualified.

56:35 So I'm pretty happy, I can say I'm very happy already with the way that the GELION team has responded on what I'm trying to do with Match the Market. It's been remarkable right across the company. So we've got one our people, Jess, who's the focus of that effort, but we've got impact from every employee really making their contribution into it. So we want to get it right. When we do that launch into commercial manufacture of Endure products, we want to make sure that we're making the right sell. So out of that work we're going to inform our technical team of what we need to do in terms of evolution of the cell that you've seen that's been made so far before we have a cell, a fully commercial cell for manufacturing and what we need to what our process engineering groups need to do on the process engineering side.

57:33 So I will be updating you on our progression to that with our next update, but I don't want to give you a specific date today because again, on that point I'd be putting my team's head in a noose that I'm not prepared to do yet because when we do it, it'll be informed by the outcomes of our match to market, the outcomes of our technology plan and our process development plan and our marketing plan to enter the particular segment and the partnership relationships that I need to put in place to support that marketing push when we do it. So I know sort of I've ducked a couple of questions today from specific quantitative answers and I apologise for that.

58:23 But I'm going to continue to progress the story and keep you informed as we go. I know that that question about when we will be going into mass production of a product is important to shareholders. But what you want to know is that when we do it, we're going to be on a successful path towards successful adoption of whatever it is that we're manufacturing and we're not going to be heading somewhere that we have to resolve from later. So stay with me on that one and we'll keep you informed as we progress. Fantastic John, thank you very much indeed and thank you to the whole team for the presentation today. You have covered off a lot of questions. There are a few more in there and of course the company will review all questions submitted then. We will publish responses where appropriate to do so. John, think you have just concluded but if there are any further words you want add just before redirecting the attendees to give you some feedback, but No, look, I know that GELION team, a lot of them are listening.

59:19 Thank you to the GELION team. Thank you to my board and thank you to the shareholders. We are a team together and it's going to be the support of that team that hopefully makes GELINE successful. You know, impact of what Thomas and the science team can do it. When I put up that graph about where energy storage goes, if you can substantially increase the energy density of lithium cells, you can achieve a lot of the goals, in fact, a lot of goals that we need for energy sustainability around the planet. So this is a great impact investment to be involved in and hopefully will make it into a great commercial investment for you as well as ever. Thank you. That's fantastic. Thank you all very much for updating investors today. Can I please ask investors not to close the session as you'll be automatically redirected to provide your feedback in order the team can better understand your views and expectations? This would only take a few moments to complete, and that is greatly valued by the company. On behalf of the management team at GELLINE PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good morning to you all.