June 2015 ITM Power Company Presentation

ITM POWER PLC: (LSE: ITM.L) JUNE 2015 | COMPANY PRESENTATION

Contents:

• Introduction

• Production

• Projects: Power-to-Gas Energy Storage

• Projects: Refuelling Station

• Financials


REFUELLING STATIONS | P2G UNITS

HYDROGEN ENERGY SYSTEMS

Power-to-Gas

Refuelling Stations

MARKET OFFERING


MARKET OFFERING Rapid Response | High Pressure | High Efficiency | MW scale

• Rapid response: less than 2s; for primary grid balancing

• High pressure: up to 80bar; for direct injection

• High efficiency: 75% measured by third parties in the field

• MW scale: 1MW modules available today

• Compliant: EU, USA and Asia

• £9.97m of projects under contract

• A further £5.79m in final stages

STANDARD PLATFORMS


PRODUCT CONSOLIDATION

10ft. ISO

10ft. ISO 20ft. ISO

20ft. ISO

20ft. ISO 40ft. ISO

REGULATIONS, CODES & STANDARDS

A leading role in shaping hydrogen deployment

• Secretary of BCGA Technical Steering Committee 9

• Secretary and UK Expert to ISO Technical Committee 197

• UK Expert to ISO working groups…

• …for electrolysers, dispensers & H2 quality

• Next Chair of BSI PVE/3/8


COMPLIANCE

Code of Practice 41: H2 Fuelling Stations Design & Construction Maintenance & Operation

ISO 19880-1: H2 Fuelling Stations ISO 22734: Electrolyser ISO 14687: H2Quality

BSI PVE/3/8: H2 Systems Standardisation Production & Storage Transport, Measurement & Use


JCB £4.9M STRATEGIC INVESTMENT

JCB £4.9M STRATEGIC INVESTMENT

Volume Manufacturing

• The world's third-largest supplier of earth-moving equipment

• Sales of £2.68bn (2014), £313m (2014) profit

• Sold 66,227 machines

• 22 factories across Asia, Europe, China, North America and South America

• 12 factories in the UK and 5 in India

• JCB products are sold in over 150 countries

JCB India,115 acre site, Jaipur.

P2G PROJECTS

THÜGA PROJECT

RWE

EMEC | ORKNEY

NG | AMEC

1MW PRODUCT

WHY POWER-TO-GAS?

POWER-TO-GAS RATIONALE

Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid

Source: ITM Power plc



MARKET SIZE | NEW EU REPORT

Germany: 46 GW (£46bn) in 2030 | 115 – 170 GW in 2050

POWER-TO-GAS

ENERGY STORAGE | CLEAN FUEL

POWER-TO-GAS


POWER-TO-GAS


EMEC | Orkney

• £1.8m sale

• Competitive tender

• 0.5MW electrolyser + storage

• Complete hydrogen energy system

• Largest system to date

• Many follow on projects

POWER-TO-GAS IN UK

POWER-TO-GAS

POWER-TO-GAS


POWER-TO-GAS IN UK

National Grid | AMEC

• Grid Gas: NG | SSE | Shell

• NG/AMEC 1: Feasibility study | £120k funded by NG

• 200/300 x Multi-MW opportunities in the UK alone

• NG/AMEC 2: Contract to identify the first project sites

GridGas NG/AMEC 1 NG/AMEC 2 First Plant

Sale


1MW P2G SKID | HANNOVER LAUNCH

New 1MW Skid | 3 x 350kW stacks

• Hannover launch April 2015

• Smallest 1MW on the market

• Based on the new 350kW stack

• Rapid response | Modular unit

• Developing projects now

POWER-TO-GAS

GRIDGAS: PROJECT RECOMMENDATIONS LONDON, 24TH OCTOBER 2013

Recommendations to DECC:

• Form a Power-to-Gas working group of stakeholders

• Review the inclusion of hydrogen from electrolysis in the Renewable Heat Incentive

• Initiate a consultation/call for evidence of injection of hydrogen into the UK gas grid

• Initiate a consultation/call for evidence of P2G energy storage in the UK

• Include Power-to-Gas in the 2050 pathways analysis

• Agree the definition of "green hydrogen“ eg: recommended by TUV of 50gCO2/kWh

Recommendations to the HSE:

• Review the current hydrogen limit of 0.1%

• Standardise the procedure for exemptions under the current rules

• Form a standards working group specifically looking at hydrogen in the gas grid

• Identify requirements for adopting a much higher concentration in the 2020s

CLEAN FUEL

Code Status Project Location Specification Funding ContractValue

Ownership

HRS 001 Operating Nottingham Univ of Notts 5kg/day 350 bar TSB (UK Gov) £275k Univ of Notts

HRS 002 Operating HOST Mobile refueller 15kg/day 350 bar TSB (UK Gov) £326k ITM Power

HRS 003 Operating Ecoisland marine Ventnor, Isle of Wight 15kg/day 350 Bar TSB (UK Gov) £326k ITM Power

HRS 004 Commissioned M1 vehicle M1 Junction 33 80kg/day 350Bar TSB (UK Gov) £1.2m ITM Power

HRS 005 In Build HyFive 3 stations in London 80kg/day 700 bar FCH JU (EU) £1.55m ITM Power



HRS 008 In Build CHINO Hyundai Chino, California 100 kg/day 700bar CEC £812k Hyundai

HRS 009 In Build Riverside Riverside, California 33kg/day 700 bar CEC £1.7m ITM Power

HRS 010 Contracts UKH2M 2 stations in London 80kg/day 700 bar OLEV | FCH JU £1.80m ITM Power

HRS 011 Contracts UKH2M 2 stations in London 80kg/day 700 bar OLEV | FCH JU £1.80m ITM Power

ITM POWER | REFUELLING STATIONS

REFERENCE PLANT | ASSETS


ON-SITE HYDROGEN PRODUCTION







OLEV | London

• £2.89m award

• £1.89m for 2 new London HRS

• £1m for upgrades including the M1 HRS

• Siting partner (oil & gas major)

• Awarded 67% of the available money

• Matched with £1.7m EU money

• Further procurement post election

UKH2MOBILITY




80KG/DAY REFUELING SYSTEM





FINANCIALS

PRODUCT SALES & PROJECT INCOME


PRODUCT SALES

Lumpy sales and getting lumpier

• Typical deal £300k to £3m

• Product sales increasing




High growth in revenue

For year ending April 30th 2013

• £1.45 total inflow

• £0.09m product sales

• £1.36m grant funding


• £3.12m total inflow


• £1.96m project funding

£0

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2010 2011 2012 2013 2014 2015Brokernote

Sales Revenue

Project Income

PROJECT INCOME


PROJECT INCOME










£0

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Collaborative Project Funding

Negotiation

Secured

Paid

STAFF COSTS


STAFF COSTS










OBJECTIVES & GROWTH STRATEGY

OBJECTIVES & GROWTH STRATEGY

Objectives:

• ITM Power achieving positive cash flow in the shortest possible time

• ITM Power products becoming the adopted standard in Power-to-Gas energy storage

• ITM Power products being integrated into market leading hydrogen refuelling stations

Growth Strategies:

• ITM Power is now firmly focussed on large scale solutions

• The Thüga reference plant in Germany is being used to drive Power-to-Gas sales

• The M1 and the London HyFive refuelling stations will be used to drive sales in the mobility sector

• National mobility programmes will drive initial refuelling station sales

• Product development will be achieved through securing and utilising project funding

• Project funding reduces cash outflow and creates key industrial partnerships

• Quoting for sales with upfront payments to reduce working capital requirements


Summary

• £9.97m of projects under contract

• A further £5.79m of contracts in final stages of negotiation

• Rapidly developing quoted project pipeline

• Strong corporate partner engagement



June 2015 ITM Power Company Presentation

Documents

uk power

projects power

gas energy storage projects

hydrogen energy systems

gas refuelling stations

gas grid source

inclusion of hydrogen

gas rationale electricity