H-power Plc · LSE:HPOW
H-power — AFC Energy — Investor Presentation (March 2015)
36 slides from H-power's investor presentation, March 2015
Slide 1: Corporate Presentation March 2015
AFC Energy Corporate Presentation March 2015 London Transforming Power… www.afcenergy.com
Slide 2: Table of Contents
Table of Contents AFC Energy 1. Overview of AFC Energy 2. Industry Overview 3. Technology Overview 4. Business Overview 5. Conclusion 6. Appendix & Financial Overview 2 Transforming Power… www.afcenergy.com
Slide 3: Overview of AFC Energy
AFC Energy Overview of AFC Energy 3 Transforming Power… www.afcenergy.com
Slide 4: Overview
Overview AFC Energy • AFC Energy’s (AIM Ticker: AFC) objective is to be • AFC has signed a formal Project Development a world class energy company that leverages the Agreement (PDA) with two South Korean deployment of its low-cost, high performance partners: Samyoung Corp and Changshin alkaline fuel
Slide 5: Financial and Market Snapshot
Financial and Market Snapshot AFC Energy On 12 March 2015, the Company was aware of the following holdings of 3% or more in the Company’s issued share capital: Number of shares % of Issued Share Capital Ervington Investments Limited 38,021,149 13.26 Lanstead Capital 23,100,000 8.05 Market Capitalisa
Slide 6: Board of Directors
Board of Directors AFC Energy Tim Yeo Sir John Sunderland Non-Executive Chairman Non-Executive Director Tim Yeo has been MP for South Suffolk since 1983. He held various Ministerial posts Sir John Sunderland is the former chief executive and chairman of Cadbury Schweppes plc. under Margaret Thatcher
Slide 7: Key Investment Highlights
Key Investment Highlights AFC Energy • Successful trial of AFC’s 101 fuel cell cartridge - the fundamental building block of the AFC fuel cell system • KORE system (240kW) to be fully installed and operational by the end of 2015 at Stade, Germany • Development of 50MW fuel cell generation capacity i
Slide 8: Industry Overview
AFC Energy Industry Overview 8 Transforming Power… www.afcenergy.com
Slide 9: Industry Overview
Industry Overview AFC Energy Source: The Fuel Cell Industry Review 2014, E4tech 9 Transforming Power… www.afcenergy.com
Slide 10: Industry Overview
Industry Overview AFC Energy Source: The Fuel Cell Industry Review 2014, E4tech 10 Transforming Power… www.afcenergy.com
Slide 11: Industry Overview
Industry Overview AFC Energy • 7000 MW stationary fuel cell market globally by 2022 • AFC Energy expects to take a material % of the total installed capacity in this market 11 Transforming Power… www.afcenergy.com
Slide 12: Technology Overview
AFC Energy Technology Overview 12 Transforming Power… www.afcenergy.com
Slide 13: Technology - AFC's Competitive Advantage
Technology - AFC’s Competitive Advantage AFC Energy • Simple • 45+ families of patents covering key technology • Basic modular design • Standard industrial materials • Low-cost scale-up to automated manufacturing • Designed for reuse or recycling AFC KORE module, • Ease of O&M both as a 3D model and
Slide 14: Technology – Components
Technology – Components AFC Energy • 3 major components electrodes (x4800) cartridge (x24) balance of plant (x1) • Electrodes: produce the power • Cartridges: house ‘multiple fuel cells’ • Balance of plant: fluid management, superstructure, safety systems, C&E, integration into customers site 14 Tra
Slide 15: Technology - System Development
Technology - System Development AFC Energy 2009 2012 Beta - 50kW Alpha - 5kW 2015 KORE - 240kW Transforming Power… 15
Slide 16: Technology – Scale Up
Technology – Scale Up AFC Energy • AFC Energy has scaled up its alkaline fuel cell from • Successful trial of the KORE cartridge at a simple 4cmx4cm test cell, to a 25 fuel cell stack; 101 fuel cells demonstrates the one quarter of the size of a commercial 101 fuel operability of the fundamental bui
Slide 17: Technology – Scale Up
Technology – Scale Up AFC Energy AFC Energy 101 fuel cell stack and cartridge assembly. 17
Slide 18: Technology - Project POWER UP
Technology - Project POWER UP AFC Energy • POWER-UP is an €11.5m project backed by €6.5m Key Highlights: of EU grants to generate and supply electricity by using surplus hydrogen produced at a chemical • First power generation in July plant in Stade, Germany 2015 of the KORE system at Stade: POWER-U
Slide 19: Technology - POWER-UP Milestones for 2015
Technology - POWER-UP Milestones for 2015 AFC Energy Commissioning 25-cell stack Phase-1 POWER-UP of POWER-UP Trials programme KORE Milestones Appoint Installation of Phase-2 POWER-UP • 11 key milestones engineering POWER-UP KORE programme for 2015 consultant system • First 4 achieved on target Conc
Slide 20: Manufacturing
Manufacturing AFC Energy Automated extrusion of electrode layers Automated extrusion of electrode layers Automated electrode stacking 20 Transforming Power… www.afcenergy.com
Slide 21: Business Overview
AFC Energy Business Overview 21 Transforming Power… www.afcenergy.com
Slide 22: Business Model
Business Model AFC Energy • Desired business model is to install, own, operate and maintain fuel cell systems • Early projects will consider joint ventures, licensing and technology sales; reflecting current capital constraints • Aggressive target of 1 Gigawatt (1,000MW) of AFC Energy fuel cell capa
Slide 23: Commercial Pipeline – S. Korea
Commercial Pipeline – S. Korea AFC Energy • In March 2015, AFC Energy executed its first landmark Joint Development Agreement with Samyoung Corporation and Chang Shin Chemical in South Korea • Scope of the JDA encapsulates two phases: - Phase 1: 5MW by the end of 2016 - Phase 2 : 50MW (cumulative) b
Slide 24: Commercial Pipeline – S. Korea (cont.)
Commercial Pipeline – S. Korea (cont.) AFC Energy • It is envisaged that AFC Energy will sell 20 KORE systems into the joint venture within phase 1 • Samyoung Corporation to provide EPC and project management services – will act as Lead Developer for the project • Chang Shin to provide hydrogen, lan
Slide 25: Commercial Pipeline (cont.)
Commercial Pipeline (cont.) AFC Energy • Other commercial opportunities are currently under evaluation in several international locations • Hydrogen sources include chlor alkali, but extend to several other possible short-term deployment opportunities • Niche markets untapped by fuel cells at the mo
Slide 26: Conclusion
AFC Energy Conclusion 26 Transforming Power… www.afcenergy.com
Slide 27: Conclusion
Conclusion AFC Energy • As the company “leaves the lab” and becomes a player in the international clean energy sector, AFC Energy’s value proposition is becoming increasingly well acknowledged and sought after by the fuel cell market • If AFC Energy achieves its aggressive 1GW of capacity in the pip
Slide 28: Disclaimer
Disclaimer AFC Energy These presentation materials are confidential. These presentation materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be r
Slide 29: AFC Energy
AFC Energy Based upon: • Technical improvements such as reduced substrate area and lower catalyst content • Purchasing improvements, i.e. the use of lower cost materials at the same quality included • Recycling and leasing materials Thank you for your kind attention for more information please visit
Slide 30: Appendix
AFC Energy Appendix 30 Transforming Power… www.afcenergy.com
Slide 31: Technology - Stade Project Site
Technology - Stade Project Site AFC Energy 31
Slide 32: Financial Overview
AFC Energy Financial Overview 32 Transforming Power… www.afcenergy.com
Slide 33: Statement of Comprehensive Income
Statement of Comprehensive Income AFC Energy Year ended Year ended 31 October 31 October 2014 2013 £ £ Revenue 782,236 759,441 Cost of sales (1,029,460) (542,924) Gross (loss)/profit (247,224) 216,517 Other income 13,899 8,990 Administrative expenses (5,673,639) (4,842,468) Operating loss (5,906,964
Slide 34: Financial Position
Financial Position Year ended Year ended 31 October 2014 31 October 2013 £ £ Assets Non current assets Intangible assets 279,073 180,733 Property and equipment 609,441 858,806 Investment 52,500 52,500 Trade and other receivables 479,761 1,420,775 1,092,039 Current assets Inventory and work in progre
Slide 35: Cash Flow
Cash Flow Year ended Year ended 31 October 2014 31 October 2013 £ £ Cash absorbed by operating activities (6,585,099) (3,794,885) Purchase of plant and equipment (51,247) (471,292) Acquisition of patents (110,215) (123,136) Increase in investment (50,000) Interest received 48,667 114,374 Net cash ab
Slide 36: Ask Transforming Power… Ask
Ask Ask 36 Transforming Power… www.afcenergy.com