HALF YEAR RESULTS For the six months ended 31 December 2016

Transcription

1 HALF YEAR RESULTS For the six months ended 31 December 2016

2 Our vision A fuel cell in every home and business 2

3 SteelCell Market Opportunities Commercial Data Centres Electric Vehicles Residential 3

4 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

5 m m Commercial Highlights Revenue and other operating income Order book H1 15/16 H2 15/16 H1 16/ Sep-15 Jun-16 Dec-16 5

6 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 6

7 Financial highlights income statement m HY 2017 HY 2016 Change Revenue and other operating income Revenue Other operating income CoS and operating costs (7.8) (6.7) (1.1) Operating loss (6.2) (6.2) - Income tax credit Loss for the financial period (5.2) (5.5) 0.3 Revenue and income driven by new customers and contracts Cost base increased as planned to address high power customers 7

8 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 Equity-free cash outflow 1 (4.2) (5.4) 1.2 Net proceeds from fundraise Net cash & financial assets 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 8 1 Change in net cash and cash equivalents and short-term investments, excluding cash flows from financing activities

9 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

10 Electric Vehicles Fuel Cells enable no compromise for end users in range or recharge time Run on available Bio-fuels 25% of all vehicles by 2025 Multi kw stack Development started

11 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

12 Outlook 5 global partners by the end of 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 12

13 Appendices 13

14 SOFC Fuel Cell Electric Vehicle Market 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 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 14

15 Data Centre Market 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. 15

16 Data Centre Market 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 % availability 16

17 Data Centre Market 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. 17

18 We have strong institutional backing OCEANWOOD CAPITAL MANAGEMENT 18