Ceres Power Holdings plc · LSE:CWR
Ceres Power — Investor Presentation (March 2021)
33 slides from Ceres Power's investor presentation, March 2021
Slide 1: Ceres Power Holdings PLC Placing and Offer for Subscription
Slide 2: Important notice
This document, any oral presentation and any question or answer session comprises an institutional presentation (this “Presentation”), which has been prepared by, and is the sole responsibility of, [Pecan] PLC (the “Company”). The content of this Presentation has not been approved for the purposes o
Slide 3: Speaker profiles
_S speaker profiles Phil Caldwell Chief Executive Officer Appointed CEO in 2013 Over 17 years experience in the fuel cell industry including establishing JVs and licensing programmes with major OEMs MEng in Chemical Engineering, Imperial College, London; MBA, IESE Barcelona Richard Preston Chief Fin
Slide 4: Key terms of the Placing
TS key terms of the Placing Fundraising overview Expected Timetable Cy Intention to raise £180m (up to 10% of ISC) of new funding Management roadshow 12-17 March * c.£90m via an institutional accelerated bookbuild * Weichai Power (20%) and Bosch (17%) supportive of fundraising and strategy, expectin
Slide 5: Opportunity to significantly increase market for Ceres technology
_/ Opportunity to significantly increase market for Ceres technology Funding to access further SOFC markets and open up potential new US$0.6-1.1 billion SOEC royalty opportunity for Ceres Further growth opportunities in Solid Oxide Fuel Cell (SOFC) * Open up valuable new markets with higher power ap
Slide 6: Use of funds - expanding the royalty opportunity
_S Use of funds - expanding the royalty opportunity Investment in SOFC: 25% of funds raised * Develop existing IP into new applications: utility scale power generation and marine power * Develop flexibility for future fuels such as hydrogen (H2), ammonia (NH3) and biofuels needed to deliver net zero
Slide 7: Clean energy starts with Ceres
T Clean energy starts with Ceres HYDROGEN Same core cell & stack technology platform Same IP portfolio covering SOEC and SOFC Same manufacturing process and supply chain Same partnering model providing scale Development phase * High efficiency green hydrogen production * Prototype construction phase
Slide 8: Investing to expand the addressable markets for our clean energy technology
Investing to expand the addressable markets for our clean energy technology and deliver our purpose to address climate change > Ceres core IP, 1kW Global demand for energy Eo to 20kW. Si Potential for 150- = 9 se 500kW utility POWER fa scale POWER = Industry: 29% NEW APPLICATIONS SOEC for H, demand
Slide 9: Ceres solid oxide flexibility for generating clean power and hydrogen
_/ Ceres solid oxide flexibility for generating clean power and hydrogen . | Hydrogen (H,) ' H, to power Commercial Newel 985 Fuel in Ammonia (NH) 2 CHP ! E-fuels/synthetic fuels o Shipping re oo Cee? oad Data OST We? Heavy centres Ww A wanepent Distributed A H, ower Power out out = HYDROGEN NG grid
Slide 10: Building new licensing revenues from the same business model
_/ Building new licensing revenues from the same business model [ 2024: SOFC | fee] | mass market ! HYDROGEN oe ! launch | 2020: SOFC: @©BOSCH Hi Royalties Partners i | Bi ' scaling up | icence fees, 9 UF | | engineering services | towards mass : market launch : La --- =p ==---- and hardware sales C
Slide 11: ©
©
Slide 12: Scaling SteelCell ecosystem into higher power and e-fuels
_/ scaling SteelCell® ecosystem into higher power and e-fuels NEW APPLICATIONS DRIVE DEMAND MANUFACTURING FOR STEEL CELL PRODUCTION FOR SOFC & SOEC Moving into higher power systems and Target global manufacturing partners broadening applications in each region to supply cells and stacks to system (t
Slide 13: Enhancing our current market position and accelerating innovation
_/ Enhancing our current market position and accelerating innovation - Weare establishing a global ecosystem for solid oxide with our partners @ BOSCH « Additional resources to ensure delivery with current partners as we scale to mass market launches in 2024 DOOSAN + Investing in infrastructure and
Slide 14: ©
©
Slide 15: Solid oxide electrolysis: high potential for industrial applications
_/ Solid oxide electrolysis: high potential for industrial applications SOEC is most efficient electrolyser technology + Key differentiating factor as energy costs are majority a | es, | Ea of hydrogen costs today . . . ; ; ; : Potential: highest efficiency, utilises waste heat and Potential to deca
Slide 16: Substantial body of work supports our growing SOEC activity
_/ substantial body of work supports our growing SOEC activity + Completed initial round of / Cea performance = AC measurements extensive fundamental R&D work 2 ———————_—- to verify solid oxide performance Sh in i ootte § S Fuel side diffusion - modelling + High level of confidence to meet wt ee ee,
Slide 17: O 2 Air (N 2 , O 2 ) O 2 + 4e -
® O2 Air (N2, O2) O2 + 4e- → 2O2- O2 + 4e- 2O2- 2O2- 2O2- 2H2 + 2O2- → 2H2O + 4e- 2H2O + 4e- → 2H2 Steam (H2O) ® ©
Slide 18: Rapidly growing market for electrolysis to meet 2050 targets
S Rapidly growing market for electrolysis to meet 2050 Targets By 2050 hydrogen could meet 18% of global final $39 /\. Power 100% energy demand hea generation, By 2050 a potential S Building heat Hey Other formsof 7 US$2.5 trillion market for ane powsy hydrogen cares hydrogen gas and a HYDROGEN elec
Slide 19: Ceres' Green Hydrogen programme
YT Ceres’ Green Hydrogen programme Electrolysis cell Core stack | technology « Aiming to deliver operational megawatt-scale system by H2 2022 * Ongoing development to optimise technology and validate lifetime performance —— er ttt ce © Ceres Power Ltd 2020 19
Slide 20: Expected development timeline
_/ Expected development timeline Q4 2020 H2 2022 Q1 2024 Core technology Prototype system operational Next Gen stack release Q4 2021 : Q4 2023 2025 . ECM subsystem : Gen 2 system operational First commercial systems operational : : Target hydrogen : : production at <$1.50/kg! Minimum viable product
Slide 21: ©
©
Slide 22: Financial summary - 18 months to December 2020
_/ Financial summary —- 12 months to 31 December 2020 Revenue and gross margin growth + Ceres SOFC continues to £25,000k 80% deliver strong top line growth, up 15% y-o-y for 12 “7 w----- mo months to December 2020 £20,000k 4 ue 60% ca = a sox - Gross profit growth £15,000k continues 40% £10,000 sos
Slide 23: Financial summary - 18 months to December 2020
_/ Financial summary —- 18 months to 31 December 2020 [ Statutory IFRS Results | Pro-forma Results | 18 months 12 months 12 months 12 months ended31 ended30 = ended 31_—s ended 31 + Investment for growth to December June December December H 7020 5019 7020 2019 drive future revenues has £'000 £'000 £
Slide 24: Summary
_/ summary Funding accelerates Ceres growth into potential new US$0.6-1.1 billion SOEC royalty opportunity and adds further SOFC capability Extending leadership in SOFC * Establishing SteelCell® as the SOFC industry standard * Strengthen scale up with manufacturing partners * New opportunities in ut
Slide 25: ©
©
Slide 26: High growth UK technology licensing company with global world-class partners
High growth UK technology licensing company with global world-class partners World leading solid oxide fuel cell (SOFC) technology - Imperial College Unique IP ~95 patent families + know how and trade secrets Currently 350+ highly skilled scientists and engineers based in UK £110m.cash and £54m orde
Slide 27: SteelCell highly differentiated for power generation
_/ steeicell® highly differentiated for power generation SteelCell® solid oxide fuel cell + Highly efficient, c.60% FECINOLOGY + Fuel flexible Nat Gas, H2 ready, blends PEM SOFC SteelCell® + Steel backbone, robust and cost- EFFICIENCY ° ° com petitive Nat Gas Nat Gas . . . FUEL Hydrogen Liquid fuels
Slide 28: Progress with key commercial partnerships
_/ Progress with key commercial partnerships © Ceres Power Ltd 2020 (@® BOSCH First partner to manufacture Ceres’ core cell technology under licence Now scaling up to 200MW production by 2024 across multiple sites in Germany ae WEICHAI 30kW range extender for electric buses in field trials Establish
Slide 29: Ceres Power revenue streams
_/ Ceres Power revenue streams services fees ~ i oa i FY 2016/17 FY 2017/18 FY 2018/19 *2019/20 1 7 . | PARTNERS’ INVESTMENT | Royalties | IN MASS PRODUCTION | | FACILITIES i 1 \ 1 ' i i I i I | 1 ! 1 i i i i ! ! | \ Supply for | customer 20.00 ! 1 | programmes 45.00 | ! I \ 1 & 10.00 | | Engineerin
Slide 30: P&L summary
TS pet summary Statutory results Proforma results 18 months} 12 months| 12 months} 12 months| ended] ended ended] ended 31-Dec-20| 30-Jun-19| 31-Dec-20| 31-Dec-19} £°000| £000} £7000) £000} Revenue 31,682 15,300 21,671 17,199 Cost of sales (10,355) (3,804) (7,085) (5,612) Gross profit 21,327 1,496 1
Slide 31: Cashflow summary
_/ Cashflow summary © Ceres Power Ltd 2020 Loss before income tax Adjustments (non-cash items) Movements in Working Capital Income tax received Net cash used in operating activities Investing activities Purchase of property, plant and equipment Capitalised development expenditure (Increase)/decrease
Slide 32: Balance sheet summary
_/ Balance sheet summary Ceres Power Ltd 2020 Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Long-term investments Other receivables Total non-current assets Current assets Inventories Contract assets Other current assets Derivative financial instruments. Curr
Slide 33: Thank you
THANK YOU a INVESTOR RELATIONS TEAM: [email protected] © Ceres Power Ltd 2020 — «#44 (0)1403 273463 [email protected] Ceres Power, Viking House Horsh ‘oundry Lane PX UK
Ceres Power Holdings — Investor Presentation (March 2021) on 6ix