Ceres Power Holdings plc · LSE:CWR
Ceres Power — FY2007 Earnings Presentation
22 slides from Ceres Power's earnings presentation, September 2007
Slide 1: Fuel cell products for global energy markets
Fuel cell products for global energy markets Fuel Cell CHP Demonstration, Site Visit and 2007 Preliminary Results September 2007
Slide 2: Disclaimer
Disclaimer This presentation is directed at institutional investors in Ceres Power Holdings plc (the “Company”) and contains a summary of information contained in the announcement of the preliminary results for the year ended 30 June 2007. The presentation does not constitute a recommendation regard
Slide 3: Highlights in 2007
Highlights in 2007 Technology • Close-coupled Fuel Cell Module demonstrated • Industry-leading integrated wall-mountable CHP Unit demonstrated Operations • New Product Facility secured and fitted-out • Machinery for manufacturing scale-up installed and being commissioned • Supply chain established f
Slide 4: Financial Results (FY to June 2007)
Financial Results (FY to 30 June 2007) £000’s ∆ Total income 1,665 21% Income from contracts 1,068 43% Adjusted loss after tax1 (3,696) 16% Net cash outflow (2,879) (5%) Cash deposits with banks 11,142 9 Strong income growth from contracts 9 Continued investment in operations capability 1 Before FRS
Slide 5: Ceres Unique Technology
Ceres Unique Technology Use of CGO electrolyte has enabled • Development of unique IT-SOFC technology • Use of low cost materials for fuel cell stack and product BOP • Compact lightweight stack design • Robust construction (mechanical & thermal shock) 100 Ceres Patent Space Above ~ 650°C Use of low
Slide 6: CHP Product Architecture
CHP Product Architecture Fuel Cell Fuel Cell Stack Fuel Cell Module Wall-Mountable CHP Unit • Unique patented • Ceres’ own patented • Electro-chemical engine, • Ceres’ own product design technology & design design source of heat & power • Innovative patented thermal • Materials formulation • Well-pr
Slide 7: CHP Product Overview
CHP Product Overview Core Technology Characteristics • 1kW electrical output from stack • Operation on natural gas (LPG compatible) • >80% overall efficiency with upside to ~90% • 100% stack sealing integrity during repeated thermal cycling • ~£300/yr and ~2.5t CO2/yr* savings for typical British Ga
Slide 8: CHP Product Demonstration
CHP Product Demonstration CHP Unit operating on test providing • Heat for a standard hot water tank • Electricity ‘Cut-away’ demonstration CHP Unit • Complete unit showing key sub-systems • All internal BOP components visible Model of next generation CHP • Demonstrates next generation product format
Slide 9: Ceres Facilities
Ceres Facilities ‘Laboratory’ ‘Development Facility’ ‘Product Facility’ U18 U17 U16 (2002) (2004) (2007) ¾ Research & ¾ Process development ¾ Manufacturing scale-up development validation ¾ Materials processing and ¾ Testing - cell, stack, electronics ¾ Pilot scale CHP product FCM and products assem
Slide 10: Product Facility - Manufacturing
Product Facility - Manufacturing Volume manufacturing process validation CHP prototype product assembly Ceramic Steel powder substrate Ink Substrate formulation perforation Anode, electrolyte, cathode deposition Stack layer Fuel Cell Module Cell firing Stack assembly welding assembly CHP Product ass
Slide 11: Outlook
Outlook Product • Value engineer CHP Unit • Optimise CHP design for manufacture Supply chain • Deliver part count reduction and value engineering • Design assembly and testing processes Manufacturing • Validate mass manufacturing processes • Secure and fit-out mother plant Commercial • Secure furthe
Slide 12: Product
Product Industry-leading position established • Single integrated wall-mountable CHP Unit • Innovative thermal management • Capable of volume manufacture Outlook - Product engineering objectives for 2008 • Optimise thermal management and efficiency • Close-couple thermal sub-systems components •e.g.
Slide 13: Supply Chain
Supply Chain Supply chain in place • Materials, components and equipment • Volume capable, cost effective • Global companies • Security of supply throughout Balance of plant • CHP Unit built using BOP sourced from volume partners • Ceres’ low temperature of operation allows • Use of low cost materia
Slide 14: Volume Assembly
Volume Assembly Engineering capability established for complete products • Designed and assembled integrated CHP Units • Partnerships in place developing volume assembly and end-of-line testing Benefits: • Control by Ceres • Product level revenues • Minimise capex through partnering for volume assem
Slide 15: Manufacturing – Product Facility
Manufacturing – Product Facility Outlook • Fully commission key manufacturing equipment (end 2007) • Conduct statistical process trials (H1 2008) • Embed quality systems and achieve formal certification (e.g. ISO) • Identify and develop automated handling solutions for mother plant • Build on existi
Slide 16: Manufacturing - Mother Plant
Manufacturing - Mother Plant Outline specification • Rated initial capacity = 1 million fuel cells per annum • Initial production units for mass trials off ‘hard tools’ • Shift pattern moves from 8/5 to 24/7 • Initial capex cost ~ £5m • Fuel cell manufacturing equipment ~ £2m • Fit out, handling/ass
Slide 17: Commercial - CHP Programme
Commercial - CHP Programme All technical & commercial milestones delivered on time • Wall-mountable integrated CHP system designed, built and tested • Attractive techno-economic business case demonstrated • Market entry model developed Outlook • Secure next phase contract to get product to market •
Slide 18: CHP Commercial Model
CHP Commercial Model Ceres unique technology underpins commercial model ¾ Electricity cost displacement ¾ Cost effective carbon reduction ¾ Compatible with existing installations (e.g. size, connections) ¾ Consumer product Market Entry Decision drivers Value drivers Who gains? Direct sale Payback /
Slide 19: Commercial - Market Entry Roadmap
Commercial - Market Entry Roadmap Residential CHP Fuel Cell Module (FCM) • Energy efficiency Heating system • Demand reduction integration • Consumer product / generation asset Battery hybridisation Residential energy security • Energy continuity • Consumer product / network asset Multiple fuels Clo
Slide 20: Commercial - Home Energy Security Programme
Commercial - Home Energy Security Programme New £1.2m contract with EDF Energy Networks • £0.6m revenue to Ceres • Products to deliver reliable back-up electricity • All IP retained by Ceres Prototypes based on • Core Ceres technology platform (Fuel Cell Module) • Running on packaged fuels (e.g. LPG
Slide 21: Summary
Summary Demonstrated industry-leading integrated wall-mountable CHP Unit • Delivered key British Gas milestone • Basis for commercially viable product • Building operational capability for mass production © Ceres Power 2007 21
Slide 22: Ceres Power Limited
Ceres Power Limited Unit 18 Denvale Trade Park Haslett Avenue East Crawley RH10 1SS United Kingdom Phone: +44 (0) 1293 400 404 Fax: +44 (0) 1293 400 482 E-Mail: [email protected] www.cerespower.com © Ceres Power 2007 22