HALF YEAR RESULTS - Ceres Power · • Most customers want SteelCell for higher power products...
Transcript of HALF YEAR RESULTS - Ceres Power · • Most customers want SteelCell for higher power products...
HALF YEAR RESULTSFor the six months ended
31 December 2016
Our vision
“A fuel cell in every home and business”
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SteelCell™ Market Opportunities
Commercial Data Centres
Electric Vehicles Residential3
Commercial Highlights
• On target for extremely successful year
• Income tripled in the period; aim to at least double for full year
• Strong pipeline; £4.8m order book as of 31 December 2016
• Most customers want SteelCell for higher power products (>5kW)
• First “go-to-market” agreement signed with global OEM to develop product
• First significant US commercial success with Cummins & US Dept. of Energy
On track to hit targets
• Achieved 4 out of 5 development agreements targeted by end 2017
• Achieved 1 out of 2 launch programmes targeted by end 2018
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Commercial Highlights
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0.0
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0.6
0.8
1.0
1.2
1.4
1.6
1.8
H1 15/16 H2 15/16 H1 16/17
£m
Revenue and other operating income
0.0
1.0
2.0
3.0
4.0
5.0
6.0
£m
Order book
Sep-15 Jun-16 Dec-16
Other Highlights
Successful £20m fundraise
• Enables further embedding the SteelCell into partner programmes
• Able to invest to access multi $bn markets
Technology and Operations
• Started development on larger cells to address higher power products
• Increasing manufacturing capacity in Horsham to 40,000 cells/yr
• Considering options to expand manufacturing to meet customer demand
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Financial highlights – income statement
£m HY
2017
HY
2016
Change
Revenue and other operating
income 1.6 0.5 1.1
- Revenue 1.0 0.2 0.8
- Other operating income 0.5 0.2 0.3
CoS and operating costs (7.8) (6.7) (1.1)
Operating loss (6.2) (6.2) -
Income tax credit 1.0 0.7 0.3
Loss for the financial period (5.2) (5.5) 0.3
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Revenue and income driven by new customers and contracts
Cost base increased as planned to address high power customers
Financial highlights – cash flow
£m HY
2017
HY
2016
Change
Operating cash flows (5.2) (5.1) (0.1)
Changes in working capital (0.9) (0.2) (0.7)
Cash used in operations (6.1) (5.3) (0.8)
Capital expenditure (0.3) (1.0) 0.7
Tax received in the period 2.2 0.8 1.4
Equity-free cash outflow1(4.2) (5.4) 1.2
Net proceeds from fundraise 19.4 0.0 19.4
Net cash & financial assets 22.2 12.8 9.4
1 Change in net cash and cash equivalents and short-term investments, excluding cash flows from financing activities
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Building team to support customers & development
Receipt of whole R&D tax credit in the period (prior year 50%)
Increase in cash & financial assets due to £20m placing
Data Centres
▪ Account for 3% of global electricity
supply; growing exponentially
▪ Fuel Cells provide primary power
▪ Grid backup is secondary
▪ Eliminates diesel ~ Zero emissions ~
Multi kW system
Development started in 2016
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▪ Fuel Cells enable no
compromise for end users
in range or recharge time
▪ Run on available Bio-fuels
▪ 25% of all vehicles by 2025
Electric Vehicles
Multi kW stack
Development started 2016
Residential / Commercial
▪ Distributed generation using
fuel cells is the most
efficient fuel to power
• ~30% lower energy costs
▪ ~30% lower carbon
▪ Zero SOx and zero NOx
First “go-to-market”
Multi kW CHP (Commercial)
+
1kW system field testing
ongoing (Residential) 11
Outlook
• 5 global partners by the end of 2017
• 2 partners in launch programmes by the end of 2018
• Target high power applications & open new markets
• Increased investment in people, technology and manufacturing
capability to access multi $bn market
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Appendices
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SOFC Fuel Cell Electric Vehicle Market
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As the cost of batteries reduces to below USD $200/kWhr, current market forecasts suggest that Electric Vehicles
will gain a dominant market share (>35%) of all vehicles sold by 2040. If SOFC fuel cells are used as range
extenders in 5% of the market, this could drive demand to > 1.5million vehicles per year or USD 5 billion/year
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SOFC fuel cells in data centres support the long term architecture towards DC powered data centres by
generating DC power at the point of use. Data centres already consume 3% of global electrical generation
capacity and growth rates are 4-10% per year. Continued reliance on grid capacity is not realistic.
Data Centre Market
Data Centre Market
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A typical data centre invests a significant amount of capital and floorspace into the provisioning of power
conversion, storage and power distribution to the server loads. To mitigate the grid power interruptions, diesel
generators and batteries are installed to improve the grid reliability from 99.9% to the data center requirement of
99.999% availability
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Annual investment in Datacentres exceeds USD $180 billion. Power, power distribution and cooling comprises
and estimated 30% of the total investment or USD$55 billion annually. Fuel cell SOFC systems could replace
some of this infrastructure while offering a more efficient operating cost to the adopter.
Data Centre Market
We have strong institutional backing
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OCEANWOODCAPITAL MANAGEMENT